Fair Value Measurement – Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative fair value guidance establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows:

Level 2 - Fair value is based on significant inputs, other than quoted prices included in Level 1, that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability through corroboration with observable market data. Level 2 inputs include quoted market prices in active markets for similar assets and liabilities, quoted market prices in markets that are not active for identical or similar assets or liabilities, and other market observable inputs. The Company’s Level 2 assets and liabilities include: fixed maturities (corporate public and private bonds, most government securities, certain asset-backed and mortgage-backed securities, etc.), certain equity securities (mutual funds, which do not trade in active markets because they are not publicly available), certain short-term investments, certain cash equivalents and certain OTC derivatives.

Level 3 - Fair value is based on at least one significant unobservable input for the asset or liability. The assets and liabilities in this category may require significant judgment or estimation in determining the fair value. The Company’s Level 3 assets and liabilities primarily include: certain private fixed maturities and equity securities, certain manually priced public fixed maturities, certain highly structured OTC derivative contracts and embedded derivatives resulting from reinsurance or certain products with guaranteed benefits.


	December 31, 2020
	Level 1		Level 2		Level 3		Netting(1)		Total
	(in thousands)
Fixed maturities, available-for-sale:
U.S Treasury securities and obligations of U.S. government authorities and agencies	$	0	$	8,887,432	$	15,000	$	0	$	8,902,432
Obligations of U.S. states and their political subdivisions	0		277,491		0		0		277,491
Foreign government bonds	0		177,383		0		0		177,383
U.S. corporate public securities	0		3,450,407		0		0		3,450,407
U.S. corporate private securities	0		1,804,855		82,208		0		1,887,063
Foreign corporate public securities	0		541,644		181		0		541,825
Foreign corporate private securities	0		1,427,537		66,298		0		1,493,835
Asset-backed securities(2)	0		974,041		18,542		0		992,583
Commercial mortgage-backed securities	0		785,942		0		0		785,942
Residential mortgage-backed securities	0		75,724		0		0		75,724
Subtotal	0		18,402,456		182,229		0		18,584,685
Fixed maturities, trading	0		1,109,097		5,045		0		1,114,142
Equity securities	234,452		39,477		4,153		0		278,082
Short-term investments	0		143,161		10,000		0		153,161
Cash equivalents	0		533,133		0		0		533,133
Other invested assets(3)	39,906		14,779,330		0		(14,624,985)		194,251
Other assets	0		0		53,980		0		53,980
Reinsurance recoverables	0		62,232		409,013		0		471,245
Receivables from parent and affiliates	0		56,026		0		0		56,026
Subtotal excluding separate account assets	274,358		35,124,912		664,420		(14,624,985)		21,438,705
Separate account assets(4)	0		32,205,296		0		0		32,205,296
Total assets	$	274,358	$	67,330,208	$	664,420	$	(14,624,985)	$	53,644,001
Future policy benefits(5)	$	0	$	0	$	17,314,004	$	0	$	17,314,004
Policyholders' account balances	0		0		580,184		0		580,184
Payables to parent and affiliates	0		11,926,536		0		(11,926,536)		0
Other liabilities	26,309		33,416		0		(9,523)		50,202
Total liabilities	$	26,309	$	11,959,952	$	17,894,188	$	(11,936,059)	$	17,944,390


	December 31, 2019
	Level 1		Level 2		Level 3		Netting (1)		Total

	(in thousands)
Fixed maturities, available-for-sale:
U.S Treasury securities and obligations of U.S. government authorities and agencies	$	0	$	7,109,277	$	10,547	$	0	$	7,119,824
Obligations of U.S. states and their political subdivisions	0		259,682		0		0		259,682
Foreign government bonds	0		222,884		0		0		222,884
U.S. corporate public securities	0		1,732,632		8,044		0		1,740,676
U.S. corporate private securities	0		1,155,464		51,875		0		1,207,339
Foreign corporate public securities	0		337,800		187		0		337,987
Foreign corporate private securities	0		1,169,324		44,161		0		1,213,485
Asset-backed securities(2)	0		425,613		18,825		0		444,438
Commercial mortgage-backed securities	0		578,289		0		0		578,289
Residential mortgage-backed securities	0		77,761		0		0		77,761
Subtotal	0		13,068,726		133,639		0		13,202,365
Fixed maturities, trading	0		378,734		4,464		0		383,198
Equity securities	5,314		46,942		5,247		0		57,503
Short-term investments	0		260,354		0		0		260,354
Cash equivalents	150,631		1,654,974		0		0		1,805,605
Other invested assets(3)	639		7,323,412		0		(7,324,049)		2
Other assets	0		0		8,059		0		8,059
Reinsurance recoverables	0		47,006		302,814		0		349,820
Receivables from parent and affiliates	0		2,573		0		0		2,573
Subtotal excluding separate account assets	156,584		22,782,721		454,223		(7,324,049)		16,069,479
Separate account assets(4)	0		32,665,431		0		0		32,665,431
Total assets	$	156,584	$	55,448,152	$	454,223	$	(7,324,049)	$	48,734,910
Future policy benefits(5)	$	0	$	0	$	11,822,998	$	0	$	11,822,998
Policyholders' account balances	0		0		196,892		0		196,892
Payables to parent and affiliates	0		3,198,440		0		(3,052,493)		145,947
Other liabilities	8,509		260		0		(639)		8,130
Total liabilities	$	8,509	$	3,198,700	$	12,019,890	$	(3,053,132)	$	12,173,967

(3)Other invested assets excluded from the fair value hierarchy include certain hedge funds, private equity funds and other funds for which fair value is measured at net asset value ("NAV") per share (or its equivalent) as a practical expedient. At December 31, 2020 and 2019, the fair values of such investments were $10.6 million and $10.5 million, respectively.

(4)Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in Statements of Financial Position.

(5)As of December 31, 2020, the net embedded derivative liability position of $17,314 million includes $455 million of embedded derivatives in an asset position and $17,769 million of embedded derivatives in a liability position. As of December 31, 2019, the net embedded derivative liability position of $11,823 million includes $583 million of embedded derivatives in an asset position and $12,406 million of embedded derivatives in a liability position.

Fixed Maturity Securities – The fair values of the Company’s public fixed maturity securities are generally based on prices obtained from independent pricing services. Prices for each security are generally sourced from multiple pricing vendors, and a vendor hierarchy is maintained by asset type based on historical pricing experience and vendor expertise. The Company ultimately uses the price from the pricing service highest in the vendor hierarchy based on the respective asset type. The pricing hierarchy is updated for new financial products and recent pricing experience with various vendors. Consistent with the fair value hierarchy described above, securities with validated quotes from pricing services are generally reflected within Level 2, as they are primarily based on observable pricing for similar assets and/or other market observable inputs. Typical inputs used by these pricing services include but are not limited to reported trades, benchmark yields, issuer spreads, bids, offers, and/or estimated cash flow, prepayment speeds and default rates. If the pricing information received from third-party pricing services is deemed not reflective of market activity or other inputs observable in the market, the Company may challenge the price through a formal process with the pricing service or classify the securities as Level 3. If the pricing service updates the price to be more consistent with the presented market observations, the security remains within Level 2.

Internally-developed valuations or indicative broker quotes are also used to determine fair value in circumstances where vendor pricing is not available, or where the Company ultimately concludes that pricing information received from the independent pricing services is not reflective of market activity. If the Company concludes the values from both pricing services and brokers are not reflective of market activity, it may override the information with an internally developed valuation. As of December 31, 2020 and 2019, overrides on a net basis were not material. Pricing service overrides, internally-developed valuations and indicative broker quotes are generally included in Level 3 in the fair value hierarchy.

The Company conducts several specific price monitoring activities. Daily analyses identify price changes over predetermined thresholds defined at the financial instrument level. Various pricing integrity reports are reviewed on a daily and monthly basis to determine if pricing is reflective of market activity or if it would warrant any adjustments. Other procedures performed include, but are not limited to, reviews of third-party pricing services methodologies, reviews of pricing trends, and back testing.

The fair values of private fixed maturities, which are originated by internal private asset managers, are primarily determined using discounted cash flow models. These models primarily use observable inputs that include Treasury or similar base rates plus estimated credit spreads to value each security. The credit spreads are obtained through a survey of private market intermediaries who are active in both primary and secondary transactions, and consider, among other factors, the credit quality and the reduced liquidity associated with private placements. Internal adjustments are made to reflect variation in observed sector spreads. Since most private placements are valued using standard market observable inputs and inputs derived from, or corroborated by, market observable data including, but not limited to observed prices and spreads for similar publicly or privately traded issues, they have been reflected within Level 2. For certain private fixed maturities, the discounted cash flow model may incorporate significant unobservable inputs, which reflect the Company’s own assumptions about the inputs that market participants would use in pricing the asset. To the extent management determines that such unobservable inputs are significant to the price of a security, a Level 3 classification is made.

Equity Securities – Equity securities consist principally of investments in common and preferred stock of publicly traded companies, privately traded securities, as well as mutual fund shares. The fair values of most publicly traded equity securities are based on quoted market prices in active markets for identical assets and are classified within Level 1 in the fair value hierarchy. Estimated fair values for most privately traded equity securities are determined using discounted cash flow, earnings multiple and other valuation models that require a substantial level of judgment around inputs and therefore are classified within Level 3. The fair values of mutual fund shares that transact regularly (but do not trade in active markets because they are not publicly available) are based on transaction prices of identical fund shares and are classified within Level 2 in the fair value hierarchy.

Derivative Instruments – Derivatives are recorded at fair value either as assets, within "Other invested assets", or as liabilities, within “Payables to parent and affiliates” or "Other liabilities", except for embedded derivatives which are recorded with the associated host contract. The fair values of derivative contracts can be affected by changes in interest rates, foreign exchange rates, credit spreads, market volatility, expected returns, NPR, liquidity and other factors.

The majority of the Company’s derivative positions are traded in the OTC derivative market and are classified within Level 2 in the fair value hierarchy. OTC derivatives classified within Level 2 are valued using models that utilize actively quoted or observable market input values from external market data providers, third-party pricing vendors and/or recent trading activity. The Company’s policy is to use mid-market pricing in determining its best estimate of fair value. The fair values of most OTC derivatives, including interest rate and cross-currency swaps, currency forward contracts and single name credit default swaps are determined using discounted cash flow models. The fair values of European style option contracts are determined using Black-Scholes option pricing models. These models’ key inputs include the contractual terms of the respective contract, along with significant observable inputs, including interest rates, currency rates, credit spreads, equity prices, index dividend yields, NPR, volatility and other factors.

The Company’s cleared interest rate swaps and credit derivatives linked to an index are valued using models that utilize actively quoted or observable market inputs, including the secured overnight financing rate ("SOFR"), obtained from external market data providers, third-party pricing vendors, and/or recent trading activity. These derivatives are classified as Level 2 in the fair value hierarchy.

Cash Equivalents and Short-Term Investments – Cash equivalents and short-term investments include money market instruments and other highly liquid debt instruments. Certain money market instruments are valued using unadjusted quoted prices in active markets that are accessible for identical assets and are primarily classified as Level 1. The remaining instruments in this category are generally fair valued based on market observable inputs and these investments have primarily been classified within Level 2.

Reinsurance Recoverables – Reinsurance recoverables carried at fair value include the reinsurance of the Company’s living benefit guarantees on certain variable annuity contracts. These guarantees are accounted for as embedded derivatives and are recorded in “Reinsurance recoverables” or “Reinsurance payables” when fair value is in an asset or liability position, respectively. The methods and assumptions used to estimate the fair value are consistent with those described below in “Future policy benefits”. The reinsurance agreements covering these guarantees are derivatives with fair value determined in the same manner as the living benefit guarantee.

Future Policy Benefits – The liability for future policy benefits is related to guarantees primarily associated with the living benefit features of certain variable annuity contracts, including guaranteed minimum accumulation benefits ("GMAB"), guaranteed withdrawal benefits ("GMWB") and guaranteed minimum income and withdrawal benefits ("GMIWB"), accounted for as embedded derivatives. The fair values of these liabilities are calculated as the present value of future expected benefit payments to customers less the present value of future expected rider fees attributable to the embedded derivative feature. This methodology could result in either a liability or asset balance, given changing capital market conditions and various actuarial assumptions. Since there is no observable active market for the transfer of these obligations, the valuations are calculated using internally developed models with option pricing techniques. The models are based on a risk neutral valuation framework and incorporate premiums for risks inherent in valuation techniques, inputs, and the general uncertainty around the timing and amount of future cash flows. The determination of these risk premiums requires the use of management's judgment.

The significant inputs to the valuation models for these embedded derivatives include capital market assumptions, such as interest rate levels and volatility assumptions, the Company’s market-perceived NPR, as well as actuarially determined assumptions, including contractholder behavior, such as lapse rates, benefit utilization rates, withdrawal rates, and mortality rates. Since many of these assumptions are unobservable and are considered to be significant inputs to the liability valuation, the liability included in future policy benefits has been reflected within Level 3 in the fair value hierarchy.

Capital market inputs and actual policyholders’ account values are updated each quarter based on capital market conditions as of the end of the quarter, including interest rates, equity markets and volatility. In the risk neutral valuation, the initial swap curve drives the total return used to grow the policyholders’ account values. The Company’s discount rate assumption is based on the LIBOR swap curve adjusted for an additional spread relative to LIBOR to reflect NPR.

Actuarial assumptions, including contractholder behavior and mortality, are reviewed at least annually, and updated based upon emerging experience, future expectations and other data, including any observable market data. These assumptions are generally updated annually unless a material change that the Company feels is indicative of a long-term trend is observed in an interim period.

Policyholders' Account Balances - The liability for policyholders’ account balances is related to certain embedded derivative instruments associated with certain annuity products that provide the policyholders with the index-linked interest credited over contract specified term periods. The fair values of these liabilities are determined using discounted cash flow models which include capital market assumptions such as interest rates and equity index volatility assumptions, the Company’s market-perceived NPR and actuarially determined assumptions for mortality, lapses and projected hedge costs.

As there is no observable active market for these liabilities, the fair value is determined as the present value of account balances paid to policyholders in excess of contractually guaranteed minimums using option pricing techniques for index term periods that contain deposits as of the valuation date, and the expected option budget for future index term periods, where the terms of index crediting rates have not yet been declared by the Company. Premiums for risks inherent in valuation techniques, inputs, and the general uncertainty around the timing and amount of future cash flows are also incorporated in the fair value of these liabilities. Since the valuation of these liabilities require the use of management’s judgment to determine these risk premiums and the use of unobservable inputs, these liabilities are reflected within Level 3 in the fair value hierarchy.

Capital market inputs, including interest rates and equity markets volatility, and actual policyholders’ account values are updated each quarter. Actuarial assumptions are reviewed at least annually and updated based upon emerging experience, future expectations and other data, including any observable market data. Aside from these annual updates, assumptions are generally updated only if a material change is observed in an interim period that the Company believes is indicative of a long-term trend.


	December 31, 2020
	Fair Value		Valuation Techniques	Unobservable Inputs	Minimum		Maximum		Weighted Average		Impact of Increase in Input on Fair Value(1)

	(in thousands)
Assets:
Corporate securities(2)	$	59,960	Discounted cash flow	Discount rate	0.99	%	20	%	6.53	%	Decrease

Reinsurance recoverables	$	409,013	Fair values are determined using the same unobservable inputs as future policy benefits.
Liabilities:
Future policy benefits(4)	$	17,314,004	Discounted cash flow	Lapse rate(6)	1	%	20	%			Decrease
				Spread over LIBOR(7)	0.06	%	1.17	%			Decrease
				Utilization rate(8)	39	%	96	%			Increase
				Withdrawal rate	See table footnote (9) below.
				Mortality rate(10)	0	%	15	%			Decrease
				Equity volatility curve	18	%	26	%			Increase
Policyholders' account balances(5)	$	580,184	Discounted cash flow	Lapse rate(6)	1	%	40	%			Decrease
				Spread over LIBOR(7)	0.06	%	1.17	%			Decrease
				Equity volatility curve	15	%	42	%			Increase



	December 31, 2019
	Fair Value		Valuation Techniques	Unobservable Inputs	Minimum		Maximum		Weighted Average		Impact of Increase in Input on Fair Value(1)

	(in thousands)
Assets:
Corporate securities(2)	$	17,149	Discounted cash flow	Discount rate	4.79	%	20	%	8.66	%	Decrease
			Market Comparables	EBITDA multiples(3)	6.7	X	6.7	X	6.7	X	Increase

Reinsurance recoverables	$	302,814	Fair values are determined using the same unobservable inputs as future policy benefits.
Liabilities:
Future policy benefits(4)	$	11,822,998	Discounted cash flow	Lapse rate(6)	1	%	18	%			Decrease
				Spread over LIBOR(7)	0.10	%	1.23	%			Decrease
				Utilization rate(8)	43	%	97	%			Increase
				Withdrawal rate	See table footnote (9) below.
				Mortality rate(10)	0	%	15	%			Decrease
				Equity volatility curve	13	%	23	%			Increase
Policyholders' account balances(5)	$	196,892	Discounted cash flow	Lapse rate(6)	1	%	42	%			Decrease
				Spread over LIBOR(7)	0.10	%	1.23	%			Decrease
				Equity volatility curve	6	%	25	%			Increase

(4)Future policy benefits primarily represent general account liabilities for the living benefit features of the Company’s variable annuity contracts which are accounted for as embedded derivatives. Since the valuation methodology for these liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than a weighted average, is a more meaningful representation of the unobservable inputs used in the valuation.

(5)Policyholders’ account balances primarily represent general account liabilities for the index-linked interest credited on certain of the Company’s annuity products that are accounted for as embedded derivatives. Since the valuation methodology for these liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than a weighted average, is a more meaningful representation of the unobservable inputs used in the valuation.

(6)Lapse rates for contracts with living benefit guarantees are adjusted at the contract level based on the in-the-moneyness of the living benefit and reflect other factors, such as the applicability of any surrender charges. Lapse rates are reduced when contracts are more in-the-money. Lapse rates for contracts with index-linked crediting guarantees may be adjusted at the contract level based on the applicability of any surrender charges, product type, and market related factors such as interest rates. Lapse rates are also generally assumed to be lower for the period where surrender charges apply. For any given contract, lapse rates vary throughout the period over which cash flows are projected for the purposes of valuing these embedded derivatives.

(7)The spread over the LIBOR swap curve represents the premium added to the proxy for the risk-free rate (LIBOR) to reflect the Company's estimates of rates that a market participant would use to value the living benefits in both the accumulation and payout phases and index-linked interest crediting guarantees. This spread includes an estimate of NPR, which is the risk that the obligation will not be fulfilled by the Company. NPR is primarily estimated by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. In order to reflect the financial strength ratings of the Company, credit spreads associated with funding agreements, as opposed to credit spread associated with debt, are utilized in developing this estimate because funding agreements, living benefit guarantees, and index-linked interest crediting guarantees are insurance liabilities and are therefore senior to debt.

(8)The utilization rate assumption estimates the percentage of contracts that will utilize the benefit during the contract duration and begin lifetime withdrawals at various time intervals from contract inception. The remaining contractholders are assumed to either begin lifetime withdrawals immediately or never utilize the benefit. Utilization assumptions may vary by product type, tax status and age. The impact of changes in these assumptions is highly dependent on the product type, the age of the contractholder at the time of the sale, and the timing of the first lifetime income withdrawal. Range reflects the utilization rate for the vast majority of business with living benefits.

(9)The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions vary based on the age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of December 31, 2020 and 2019, the minimum withdrawal rate assumption is 76% and 78%, respectively. As of both December 31, 2020 and 2019, the maximum withdrawal rate assumption may be greater than 100%. The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%.

(10)The range reflects the mortality rates for the vast majority of business with living benefits, with policyholders ranging from 45 to 90 years old. While the majority of living benefits have a minimum age requirement, certain other contracts do not have an age restriction. This results in contractholders with mortality rates approaching 0% for certain benefits. Mortality rates may vary by product, age, and duration. A mortality improvement assumption is also incorporated into the overall mortality table.

Interrelationships Between Unobservable Inputs – In addition to the sensitivities of fair value measurements to changes in each unobservable input in isolation, as reflected in the table above, interrelationships between these inputs may also exist, such that a change in one unobservable input may give rise to a change in another, or multiple, inputs. Examples of such interrelationships for significant internally-priced Level 3 assets and liabilities are as follows:

Corporate Securities – The rate used to discount future cash flows reflects current risk-free rates plus credit and liquidity spread requirements that market participants would use to value an asset. The discount rate may be influenced by many factors, including market cycles, expectations of default, collateral, term and asset complexity. Each of these factors can influence discount rates, either in isolation, or in response to other factors.

Future Policy Benefits – The Company expects efficient benefit utilization and withdrawal rates to generally be correlated with lapse rates. However, behavior is generally highly dependent on the facts and circumstances surrounding the individual contractholder, such as their liquidity needs or tax situation, which could drive lapse behavior independent of other contractholder behavior assumptions. To the extent more efficient contractholder behavior results in greater in-the-moneyness at the contract level, lapse rates may decline for those contracts. Similarly, to the extent that increases in equity volatility are correlated with overall declines in the capital markets, lapse rates may decline as contracts become more in-the-money.

Changes in Level 3 Assets and Liabilities – The following tables describe changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods. When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. All transfers are based on changes in the observability of the valuation inputs, including the availability of pricing service information that the Company can validate. Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies and the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company can validate.



	Year Ended December 31, 2020
	Fair Value, beginning of period		Total realized and unrealized gains (losses)(1)		Purchases		Sales		Issuances		Settlements		Other(2)		Transfers into Level 3		Transfers out of Level 3		Fair Value, end of period		Unrealized gains (losses) for assets still held(3)
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Government	$	10,547	$	0	$	4,453	$	0	$	0	$	0	$	0	$	0	$	0	$	15,000	$	0

Corporate Securities(4)	104,267		(1,238)		43,130		(8,965)		0		(24,297)		0		36,829		(1,039)		148,687		(7,089)
Structured Securities(5)	18,825		(215)		8,044		0		0		(2,788)		0		312		(5,636)		18,542		(228)
Other assets:
Fixed maturities, trading	4,464		581		0		0		0		0		0		0		0		5,045		602
Equity securities	5,247		306		0		(1,400)		0		0		0		0		0		4,153		1,147

Short-term investments	0		0		10,000		0		0		0		0		0		0		10,000		0
Cash equivalents	0		0		0		0		0		0		0		0		0		0		0
Other assets	8,059		13,972		33,333		0		0		(1,384)		0		0		0		53,980		12,589
Reinsurance recoverables	302,814		89,065		17,134		0		0		0		0		0		0		409,013		96,663

Liabilities:
Future policy benefits	(11,822,998)		(4,339,782)		0		0		(1,151,224)		0		0		0		0		(17,314,004)		(4,710,743)
Policyholders' account balances(6)	(196,892)		(201,526)		0		0		(181,766)		0		0		0		0		(580,184)		(168,060)


	Year Ended December 31, 2020
	Total realized and unrealized gains (losses)								Unrealized gains (losses) for assets still held(3)
	Realized investment gains (losses), net(1)		Asset administration fees and other income		Included in other comprehensive income (losses)		Net investment income			Realized investment gains (losses), net		Asset administration fees and other income		Included in other comprehensive income (losses)(7)
	(in thousands)
Fixed maturities, available-for-sale	$	(29)	$	0	$	(1,572)	$	148		$	(686)	$	0	$	(6,631)
Other assets:
Fixed maturities, trading	0		602		0		(21)			0		602		0
Equity securities	0		306		0		0			0		1,147		0

Short-term investments	0		0		0		0			0		0		0
Cash equivalents	0		0		0		0			0		0		0
Other assets	13,972		0		0		0			12,589		0		0
Reinsurance recoverables	89,065		0		0		0			96,663		0		0

Liabilities:
Future policy benefits	(4,339,782)		0		0		0			(4,710,743)		0		0
Policyholders' account balances	(201,526)		0		0		0			(168,060)		0		0



	Year Ended December 31, 2019
	Fair Value, beginning of period		Total realized and unrealized gains (losses)(1)		Purchases		Sales		Issuances		Settlements		Other(2)		Transfers into Level 3		Transfers out of Level 3		Fair Value, end of period		Unrealized gains (losses) for assets still held(3)
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Government	$	8,132	$	0	$	2,415	$	0	$	0	$	0	$	0	$	0	$	0	$	10,547	$	0

Corporate Securities(4)	85,452		(1,123)		61,563		0		0		(43,724)		0		4,655		(2,556)		104,267		(3,797)
Structured Securities(5)	9,336		502		44,273		0		0		(5,259)		0		551		(30,578)		18,825		(2)
Other assets:
Fixed maturities, trading	0		(557)		0		0		0		0		0		5,021		0		4,464		(543)
Equity securities	5,705		471		0		(929)		0		0		0		0		0		5,247		482

Short-term investments	0		0		0		0		0		0		0		0		0		0		0
Cash equivalents	0		0		0		0		0		0		0		0		0		0		0
Other assets	0		441		7,618		0		0		0		0		0		0		8,059		441
Reinsurance recoverables	239,911		70,063		17,950		0		0		0		21,896		0		(47,006)		302,814		57,652

Liabilities:
Future policy benefits	(8,332,474)		(2,409,958)		0		0		(1,080,566)		0		0		0		0		(11,822,998)		(2,710,167)
Policyholders' account balances(6)	(42,350)		(32,247)		0		0		(122,295)		0		0		0		0		(196,892)		(22,699)


	Year Ended December 31, 2019
	Total realized and unrealized gains (losses)								Unrealized gains (losses) for assets still held(3)
	Realized investment gains (losses), net(1)		Asset administration fees and other income		Included in other comprehensive income (losses)		Net investment income			Realized investment gains (losses), net		Asset administration fees and other income
	(in thousands)
Fixed maturities, available-for-sale	$	(3,562)	$	0	$	2,690	$	251		$	(3,799)	$	0
Other assets:
Fixed maturities, trading	0		(543)		0		(14)			0		(543)
Equity securities	0		471		0		0			0		482

Short-term investments	0		0		0		0			0		0
Cash equivalents	0		0		0		0			0		0
Other assets	441		0		0		0			441		0
Reinsurance recoverables	70,063		0		0		0			57,652		0

Liabilities:
Future policy benefits	(2,409,958)		0		0		0			(2,710,167)		0
Policyholders' account balances	(32,247)		0		0		0			(22,699)		0


	Year Ended December 31, 2018
	Total realized and unrealized gains (losses)								Unrealized gains (losses) for assets still held(3)
	Realized investment gains (losses), net(1)		Asset administration fees and other income		Included in other comprehensive income (losses)		Net investment income			Realized investment gains (losses), net		Asset administration fees and other income
	(in thousands)
Fixed maturities, available-for-sale	$	(6,693)	$	0	$	(5,194)	$	241		$	(6,627)	$	0
Other assets:
Fixed maturities, trading	0		0		0		0			0		0
Equity securities	0		(591)		0		0			0		(1,208)

Short-term investments	(20)		0		0		0			(55)		0
Cash equivalents	13		0		0		0			0		0
Other assets	0		0		0		0			0		0
Reinsurance recoverables	(28,757)		0		0		0			(19,962)		0

Liabilities:
Future policy benefits	843,914		0		0		0			529,804		0
Policyholders' account balances	6,051		0		0		0			6,051		0

(7)Effective January 1, 2020, the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period were added prospectively due to adoption of ASU 2018-13. Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.

The table below presents the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value. The financial instruments presented below are reported at carrying value on the Statements of Financial Position. In some cases, as described below, the carrying amount equals or approximates fair value.


	December 31, 2020
	Fair Value								Carrying Amount(1)
	Level 1		Level 2		Level 3		Total		Total

	(in thousands)
Assets:
Commercial mortgage and other loans	$	0	$	0	$	1,836,633	$	1,836,633	$	1,765,770
Policy loans	0		0		11,806		11,806		11,806
Short-term investments	165,000		0		0		165,000		165,000
Cash and cash equivalents	386,078		150,000		0		536,078		536,078
Accrued investment income	0		121,604		0		121,604		121,604
Reinsurance recoverables	0		0		51,225		51,225		50,484
Receivables from parent and affiliates	0		31,594		0		31,594		31,594
Other assets	0		278,355		394,069		672,424		672,424
Total assets	$	551,078	$	581,553	$	2,293,733	$	3,426,364	$	3,354,760
Liabilities:
Policyholders’ account balances - investment contracts	$	0	$	0	$	2,426,471	$	2,426,471	$	2,406,100

Short-term debt	0		121,205		0		121,205		119,671
Long-term debt	0		332,451		0		332,451		299,747
Reinsurance Payables	0		0		44,446		44,446		44,446
Payables to parent and affiliates	0		47,345		0		47,345		47,345
Other liabilities	0		757,968		0		757,968		757,968
Separate account liabilities - investment contracts	0		30		0		30		30
Total liabilities	$	0	$	1,258,999	$	2,470,917	$	3,729,916	$	3,675,307



	December 31, 2019
	Fair Value								Carrying Amount(1)
	Level 1		Level 2		Level 3		Total		Total

	(in thousands)
Assets:
Commercial mortgage and other loans	$	0	$	0	$	1,512,283	$	1,512,283	$	1,471,522
Policy loans	0		0		12,366		12,366		12,366
Short-term investments	75,004		0		0		75,004		75,004
Cash and cash equivalents	687,558		302,000		0		989,558		989,558
Accrued investment income	0		102,724		0		102,724		102,724
Reinsurance recoverables	0		0		56,171		56,171		55,796
Receivables from parent and affiliates	0		10,192		50,587		60,779		60,192
Other assets	0		1,893		63,106		64,999		64,999
Total assets	$	762,562	$	416,809	$	1,694,513	$	2,873,884	$	2,832,161
Liabilities:
Policyholders’ account balances - investment contracts	$	0	$	0	$	1,445,486	$	1,445,486	$	1,438,742

Short-term debt	0		245,617		0		245,617		242,094
Long-term debt	0		446,105		0		446,105		419,418
Reinsurance payables	0		0		50,035		50,035		50,035
Payables to parent and affiliates	0		39,209		0		39,209		39,209
Other liabilities	0		205,988		0		205,988		205,988
Separate account liabilities - investment contracts	0		54		0		54		54
Total liabilities	$	0	$	936,973	$	1,495,521	$	2,432,494	$	2,395,540

The fair value of most commercial mortgage loans is based upon the present value of the expected future cash flows discounted at the appropriate U.S. Treasury rate or foreign government bond rate (for non-U.S. dollar-denominated loans) plus an appropriate credit spread for loans of similar quality, average life and currency. The quality ratings for these loans, a primary determinant of the credit spreads and a significant component of the pricing process, are based on an internally-developed methodology. Certain commercial mortgage loans are valued incorporating other factors, including the terms of the loans, the principal exit strategies for the loans, prevailing interest rates and credit risk.

Only the portion of policyholders’ account balances related to products that are investment contracts (those without significant mortality or morbidity risk) are reflected in the table above. For fixed deferred annuities, payout annuities and other similar contracts without life contingencies, fair values are generally derived using discounted projected cash flows based on interest rates that are representative of the Company’s financial strength ratings, and hence reflect the Company’s own NPR. For those balances that can be withdrawn by the customer at any time without prior notice or penalty, the fair value is the amount estimated to be payable to the customer as of the reporting date, which is generally the carrying value.

The fair value of short-term and long-term debt is generally determined by either prices obtained from independent pricing services, which are validated by the Company, or discounted cash flow models. Discounted cash flow models predominately use market observable inputs such as the borrowing rates currently available to the Company for debt and financial instruments with similar terms and remaining maturities. For debt with a maturity of less than 90 days, the carrying value approximates fair value.

Other liabilities and payables to parent and affiliates includes the funds withheld liability for assets retained under a reinsurance agreement that corresponds to the deposit assets above in "Other Assets". Also included are unsettled trades, drafts, escrow deposits and accrued expense payables and due to the short-term until settlement of most of these liabilities, the Company believes that carrying value approximates fair value.

Only the portion of separate account liabilities related to products that are investment contracts are reflected in the table above. Separate account liabilities are recorded at the amount credited to the contractholder, which reflects the change in fair value of the corresponding separate account assets including contractholder deposits less withdrawals and fees; therefore, carrying value approximates fair value.