Fair Value of Assets and Liabilities Fair Value of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Schedule Of Fair Value Assets and Liabilities Measured on Recurring Basis Table Text Block

Assets and liabilities measured at fair value on a recurring basis as of September 30, 2020 and December 31, 2019 are summarized below (dollars in millions):

September 30, 2020:			Fair Value Measurements Using:
	Total		Level 1		Level 2		Level 3
Assets:
Fixed maturity securities – available-for-sale:
Corporate	$	34,259	$	—	$	31,732	$	2,527
Canadian government	4,897		—		4,897		—
RMBS	2,027		—		2,023		4
ABS	2,922		—		2,772		150
CMBS	1,930		—		1,878		52
U.S. government	1,630		1,520		95		15
State and political subdivisions	1,383		—		1,374		9
Other foreign government	5,604		—		5,587		17
Total fixed maturity securities – available-for-sale	54,652		1,520		50,358		2,774
Equity securities	135		75		—		60
Funds withheld at interest – embedded derivatives	7		—		—		7
Cash equivalents	1,835		1,825		10		—
Short-term investments	101		20		75		6
Other invested assets:
Derivatives	174		—		174		—
FVO contractholder-directed unit-linked investments	258		201		57		—
Other	4		—		4		—
Total other invested assets	436		201		235		—
Total	$	57,166	$	3,641	$	50,678	$	2,847
Liabilities:
Interest-sensitive contract liabilities – embedded derivatives	$	980	$	—	$	—	$	980
Other liabilities:
Derivatives	58		—		58		—
Total	$	1,038	$	—	$	58	$	980

December 31, 2019:			Fair Value Measurements Using:
	Total		Level 1		Level 2		Level 3
Assets:
Fixed maturity securities – available-for-sale:
Corporate	$	31,393	$	—	$	29,207	$	2,186
Canadian government	4,612		—		3,908		704
RMBS	2,398		—		2,349		49
ABS	2,978		—		2,865		113
CMBS	1,899		—		1,853		46
U.S. government	2,152		2,030		106		16
State and political subdivisions	1,164		—		1,155		9
Other foreign government	4,525		—		4,509		16
Total fixed maturity securities – available-for-sale	51,121		2,030		45,952		3,139
Equity securities	320		243		—		77
Funds withheld at interest – embedded derivatives	121		—		—		121
Cash equivalents	274		274		—		—
Short-term investments	32		4		26		2
Other invested assets:
Derivatives	117		—		117		—
FVO contractholder-directed unit-linked investments	260		207		53		—
Other	—		—		—		—
Total other invested assets	377		207		170		—
Total	$	52,245	$	2,758	$	46,148	$	3,339
Liabilities:
Interest-sensitive contract liabilities – embedded derivatives	$	930	$	—	$	—	$	930
Other liabilities:
Derivatives	53		—		53		—
Total	$	983	$	—	$	53	$	930

Fair Value Inputs, Liabilities, Quantitative Information [Table Text Block]

The following table presents quantitative information about significant unobservable inputs used in Level 3 fair value measurements that are developed internally by the Company as of September 30, 2020 and December 31, 2019 (dollars in millions):

	Estimated Fair Value				Valuation Technique	Unobservable Inputs	Range (Weighted Average)
	September 30, 2020		December 31, 2019				September 30, 2020	December 31, 2019
Assets:
Corporate	$	57	$	1,070	Market comparable securities	Liquidity premium	0-1% (1%)	0-2% (1%)
						EBITDA Multiple	5.2x-7.0x (6.4x)	5.2x-7.1x (6.7x)
ABS	80		101		Market comparable securities	Liquidity premium	1-18% (1%)	0-4% (1%)
U.S. government	15		16		Market comparable securities	Liquidity premium	0-1% (1%)	0-1% (1%)
Other foreign government	—		16		Market comparable securities	Liquidity premium	—	0-1% (1%)
Equity securities	11		32		Market comparable securities	Liquidity premium	—	4	%
						EBITDA Multiple	6.9x-10.6x (7.9x)	6.9x-9.3x (7.8x)
Funds withheld at interest – embedded derivatives	7		121		Total return swap	Mortality	0-100% (3%)	0-100% (2%)
						Lapse	0-35% (13%)	0-35% (13%)
						Withdrawal	0-5% (3%)	0-5% (3%)
						CVA	0-5% (1%)	0-5% (1%)
						Crediting rate	2-4% (2%)	2-4% (2%)
Liabilities:
Interest-sensitive contract liabilities – embedded derivatives – indexed annuities	767		768		Discounted cash flow	Mortality	0-100% (3%)	0-100% (2%)
						Lapse	0-35% (13%)	0-35% (10%)
						Withdrawal	0-5% (3%)	0-5% (3%)
						Option budget projection	2-4% (2%)	2-4% (2%)
Interest-sensitive contract liabilities – embedded derivatives – variable annuities	213		163		Discounted cash flow	Mortality	0-100% (2%)	0-100% (1%)
						Lapse	0-25% (4%)	0-25% (5%)
						Withdrawal	0-7% (5%)	0-7% (5%)
						CVA	0-5% (1%)	0-5% (1%)
						Long-term volatility	0-27% (13%)	0-27% (12%)

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

The reconciliations for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) are as follows (dollars in millions):

For the three months ended September 30, 2020:	Fixed maturity securities – available-for-sale															Funds  withheld at interest – embedded derivatives			Other assets and liabilities, net – longevity and mortality swaps		Interest-sensitive contract  liabilities – embedded derivatives
	Corporate			Foreign govt		Structured securities			U.S. and local govt		Equity securities			Short-term investments
Fair value, beginning of period	$	2,308		$	17	$	153		$	24	$	62		$	5	$	(109	)	$	—	$	(930	)
Total gains/losses (realized/unrealized)
Included in earnings, net:
Investment income, net of related expenses	—			—		—			—		—			—		—			—		—
Investment related gains (losses), net	3			—		—			—		(2		)	—		116			—		(28		)
Interest credited	—			—		—			—		—			—		—			—		(29		)
Included in other comprehensive income	(9		)	—		(2		)	—		—			—		—			—		—
Other revenues	—			—		—			—		—			—		—			—		—
Purchases(1)	341			—		63			—		—			1		—			—		(9		)
Sales(1)	(70		)	—		(1		)	—		—			—		—			—		—
Settlements(1)	(53		)	—		(8		)	—		—			—		—			—		16
Transfers into Level 3	7			—		7			—		—			—		—			—		—
Transfers out of Level 3	—			—		(6		)	—		—			—		—			—		—
Fair value, end of period	$	2,527		$	17	$	206		$	24	$	60		$	6	$	7		$	—	$	(980	)
Total gains/losses (realized/unrealized) recorded for the period relating to those Level 3 assets and liabilities that were still held at the end of the period
Included in earnings, net:
Investment income, net of related expenses	$	—		$	—	$	—		$	—	$	—		$	—	$	—		$	—	$	—
Investment related gains (losses), net	3			—		—			—		(2		)	—		116			—		(31		)
Other revenues	—			—		—			—		—			—		—			—		—
Interest credited	—			—		—			—		—			—		—			—		(46		)
Included in other comprehensive income	(8		)	—		(2		)	—		—			—		—			—		—

For the nine months ended September 30, 2020:	Fixed maturity securities – available-for-sale																		Funds  withheld at interest – embedded derivatives			Other assets and liabilities, net – longevity and mortality swaps		Interest-sensitive contract  liabilities – embedded derivatives
	Corporate			Foreign govt			Structured securities			U.S. and local govt			Equity securities			Short-term investments
Fair value, beginning of period	$	2,186		$	720		$	208		$	25		$	77		$	2		$	121		$	—	$	(930	)
Total gains/losses (realized/unrealized)
Included in earnings, net:
Investment income, net of related expenses	1			—			—			—			—			—			—			—		—
Investment related gains (losses), net	(22		)	—			—			—			(6		)	—			(114		)	—		(50		)
Interest credited	—			—			—			—			—			—			—			—		(30		)
Included in other comprehensive income	(12		)	1			(12		)	1			—			—			—			—		—
Other revenues	—			—			—			—			—			—			—			—		—
Purchases(1)	651			—			87			—			3			6			—			—		(28		)
Sales(1)	(132		)	—			(5		)	—			—			—			—			—		—
Settlements(1)	(149		)	—			(39		)	(2		)	—			(1		)	—			—		58
Transfers into Level 3	8			—			28			—			—			—			—			—		—
Transfers out of Level 3	(4		)	(704		)	(61		)	—			(14		)	(1		)	—			—		—
Fair value, end of period	$	2,527		$	17		$	206		$	24		$	60		$	6		$	7		$	—	$	(980	)
Total gains/losses (realized/unrealized) recorded for the period relating to those Level 3 assets and liabilities that were still held at the end of the period
Included in earnings, net:
Investment income, net of related expenses	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—	$	—
Investment related gains (losses), net	(23		)	—			—			—			(6		)	—			(114		)	—		58
Other revenues	—			—			—			—			—			—			—			—		—
Interest credited	—			—			—			—			—			—			—			—		(89		)
Included in other comprehensive income	(37		)	1			(13		)	1			—			—			—			—		—

For the three months ended September 30, 2019:	Fixed maturity securities – available-for-sale																Funds  withheld at interest – embedded derivatives		Other assets and liabilities, net – longevity and mortality swaps			Interest-sensitive contract  liabilities – embedded derivatives
	Corporate			Foreign govt		Structured securities			U.S. and local govt		Equity securities			Short-term investments
Fair value, beginning of period	$	1,644		$	687	$	126		$	27	$	45		$	28		$	113	$	51		$	(908	)
Total gains/losses (realized/unrealized)
Included in earnings, net:
Investment income, net of related expenses	—			4		—			—		—			—			—		—			—
Investment related gains (losses), net	—			—		—			—		2			—			8		—			(42		)
Interest credited	—			—		—			—		—			—			—		—			(45		)
Included in other comprehensive income	17			16		(1		)	—		—			—			—		(2		)	—
Other revenues	—			—		—			—		—			—			—		2			—
Purchases(1)	214			—		11			—		1			2			—		—			(17		)
Sales(1)	(34		)	—		—			—		(1		)	—			—		—			—
Settlements(1)	(63		)	—		(20		)	—		—			—			—		—			23
Transfers into Level 3	27			—		46			—		—			—			—		—			—
Transfers out of Level 3	—			—		(6		)	—		—			(27		)	—		—			—
Fair value, end of period	$	1,805		$	707	$	156		$	27	$	47		$	3		$	121	$	51		$	(989	)
Total gains/losses (realized/unrealized) recorded for the period relating to those Level 3 assets and liabilities that were still held at the end of the period
Included in earnings, net:
Investment income, net of related expenses	$	1		$	4	$	—		$	—	$	—		$	—		$	—	$	—		$	—
Investment related gains (losses), net	—			—		—			—		2			—			8		—			45
Other revenues	—			—		—			—		—			—			—		2			—
Interest credited	—			—		—			—		—			—			—		—			(68		)

For the nine months ended September 30, 2019:	Fixed maturity securities – available-for-sale																	Funds  withheld at interest – embedded derivatives		Other assets and liabilities, net – longevity and mortality swaps			Interest-sensitive contract  liabilities – embedded derivatives
	Corporate			Foreign govt		Structured securities			U.S. and local govt			Equity securities			Short-term investments
Fair value, beginning of period	$	1,331		$	533	$	103		$	28		$	33		$	2		$	110	$	47		$	(945	)
Total gains/losses (realized/unrealized)
Included in earnings, net:
Investment income, net of related expenses	—			11		—			—			—			—			—		—			—
Investment related gains (losses), net	—			—		—			—			8			—			11		—			(42		)
Interest credited	—			—		—			—			—			—			—		—			(50		)
Included in other comprehensive income	53			153		1			1			—			—			—		(2		)	—
Other revenues	—			—		—			—			—			—			—		6			—
Purchases(1)	605			10		54			—			7			30			—		—			(13		)
Sales(1)	(59		)	—		—			—			(1		)	(1		)	—		—			—
Settlements(1)	(167		)	—		(49		)	(2		)	—			(1		)	—		—			61
Transfers into Level 3	43			—		53			—			—			—			—		—			—
Transfers out of Level 3	(1		)	—		(6		)	—			—			(27		)	—		—			—
Fair value, end of period	$	1,805		$	707	$	156		$	27		$	47		$	3		$	121	$	51		$	(989	)
Total gains/losses (realized/unrealized) recorded for the period relating to those Level 3 assets and liabilities that were still held at the end of the period
Included in earnings, net:
Investment income, net of related expenses	$	1		$	11	$	—		$	—		$	—		$	—		$	—	$	—		$	—
Investment related gains (losses), net	—			—		—			—			8			—			11		—			(48		)
Other revenues	—			—		—			—			—			—			—		6			—
Interest credited	—			—		—			—			—			—			—		—			(111		)

(1)

The amount reported within purchases, sales and settlements is the purchase price (for purchases) and the sales/settlement proceeds (for sales and settlements) based upon the actual date purchased or sold/settled. Items purchased and sold/settled in the same period are excluded from the rollforward. The Company had no issuances during the period.

Financial Instruments Carrying Amounts And Estimated Fair Value [Table Text Block]

The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments, which were not measured at fair value on a recurring basis, as of September 30, 2020 and December 31, 2019 (dollars in millions). For additional information regarding the methods and significant assumptions used by the Company to estimate these fair values, see Note 6 – “Fair Value of Assets and Liabilities” in the Notes to Consolidated Financial Statements included in the Company’s 2019 Annual Report. This table excludes any payables or receivables for collateral under repurchase agreements and other transactions. The estimated fair value of the excluded amount approximates carrying value as they equal the amount of cash collateral received/paid.

September 30, 2020:	Carrying Value (1)		Estimated  Fair Value		Fair Value Measurement Using:
					Level 1		Level 2		Level 3		NAV
Assets:
Mortgage loans on real estate	$	5,907	$	6,354	$	—	$	—	$	6,354	$	—
Policy loans	1,259		1,259		—		1,259		—		—
Funds withheld at interest	5,373		5,737		—		—		5,737		—
Cash and cash equivalents	1,421		1,421		1,421		—		—		—
Short-term investments	53		53		53		—		—		—
Other invested assets	1,387		1,492		4		90		958		440
Accrued investment income	547		547		—		547		—		—
Liabilities:
Interest-sensitive contract liabilities	$	17,983	$	19,845	$	—	$	—	$	19,845	$	—
Long-term debt	3,573		3,816		—		—		3,816		—
Collateral finance and securitization notes	408		368		—		—		368		—
December 31, 2019:	Carrying Value (1)		Estimated Fair Value		Fair Value Measurement Using:
					Level 1		Level 2		Level 3		NAV
Assets:
Mortgage loans on real estate	$	5,706	$	5,935	$	—	$	—	$	5,935	$	—
Policy loans	1,319		1,319		—		1,319		—		—
Funds withheld at interest	5,526		5,870		—		—		5,870		—
Cash and cash equivalents	1,175		1,175		1,175		—		—		—
Short-term investments	32		32		32		—		—		—
Other invested assets	1,259		1,278		5		68		803		402
Accrued investment income	493		493		—		493		—		—
Liabilities:
Interest-sensitive contract liabilities	$	19,163	$	21,542	$	—	$	—	$	21,542	$	—
Long-term debt	2,981		3,179		—		—		3,179		—
Collateral finance and securitization notes	598		551		—		—		551		—

(1)

Carrying values presented herein may differ from those in the Company’s condensed consolidated balance sheets because certain items within the respective financial statement captions may be measured at fair value on a recurring basis.