General accounting principles for Fair Value Measurements and Disclosures define fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. These principles also establish a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value and describes three levels of inputs that may be used to measure fair value:

Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities. Active markets are defined as having the following characteristics for the measured asset/liability: (i) many transactions, (ii) current prices, (iii) price quotes not varying substantially among market makers, (iv) narrow bid/ask spreads and (v) most information publicly available. The Company’s Level 1 assets and liabilities are traded in active exchange markets.

Level 2 – Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or market standard valuation techniques and assumptions that use significant inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Such observable inputs include benchmarking prices for similar assets in active, liquid markets, quoted prices in markets that are not active and observable yields and spreads in the market. The Company’s Level 2 assets and liabilities include investment securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose values are determined using market standard valuation techniques. Level 2 valuations are generally obtained from third party pricing services for identical or comparable assets or liabilities or through the use of valuation methodologies using observable market inputs. Prices from servicers are validated through analytical reviews and assessment of current market activity.

Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the related assets or liabilities. Level 3 assets and liabilities include those whose value is determined using market standard valuation techniques described above. When observable inputs are not available, the market standard techniques for determining the estimated fair value of certain securities that trade infrequently, and therefore have little transparency, rely on inputs that are significant to the estimated fair value and that are not observable in the market or cannot be derived principally from or corroborated by observable market data. These unobservable inputs can be based in large part on management judgment or estimation and cannot be supported by reference to market activity. Even though unobservable, management

believes these inputs are based on assumptions deemed appropriate given the circumstances and consistent with what other market participants would use when pricing similar assets and liabilities. Prices are determined using valuation methodologies such as discounted cash flow models and other similar techniques that require management’s judgment or estimation in developing inputs that are consistent with those other market participants would use when pricing similar assets and liabilities. Non-binding broker quotes, which are utilized when pricing service information is not available, are reviewed for reasonableness based on the Company’s understanding of the market, and are generally considered Level 3. Under certain circumstances, based on its observations of transactions in active markets, the Company may conclude the prices received from independent third party pricing services or brokers are not reasonable or reflective of market activity. In those instances, the Company would apply internally developed valuation techniques to the related assets or liabilities. Additionally, the Company’s embedded derivatives, all of which are associated with reinsurance treaties, and longevity and mortality swaps are classified in Level 3 since their values include significant unobservable inputs.

When inputs used to measure the fair value of an asset or liability fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement in its entirety, except for fair value measurements using NAV. For example, a Level 3 fair value measurement may include inputs that are observable (Levels 1 and 2) and unobservable (Level 3). Therefore, gains and losses for such assets and liabilities categorized within Level 3 may include changes in fair value that are attributable to both observable inputs (Levels 1 and 2) and unobservable inputs (Level 3).


December 31, 2020:			Fair Value Measurements Using:
	Total		Level 1		Level 2		Level 3
Assets:
Fixed maturity securities – available-for-sale:
Corporate	$	36,208	$	—	$	33,179	$	3,029
Canadian government	5,140		—		5,140		—
RMBS	1,817		—		1,814		3
ABS	3,092		—		2,896		196
CMBS	1,868		—		1,813		55
U.S. government	1,437		1,312		111		14
State and political subdivisions	1,390		—		1,381		9
Other foreign government	5,783		—		5,766		17
Total fixed maturity securities – available-for-sale	56,735		1,312		52,100		3,323
Equity securities	132		79		—		53
Funds withheld at interest – embedded derivatives & other	114		—		—		114
Cash equivalents	1,478		1,478		—		—
Short-term investments	197		32		150		15
Other invested assets:
Derivatives	140		—		140		—
FVO contractholder-directed unit-linked investments	289		224		65		—


Total other invested assets	429		224		205		—
Total	$	59,085	$	3,125	$	52,455	$	3,505
Liabilities:
Interest-sensitive contract liabilities – embedded derivatives	$	907	$	—	$	—	$	907
Other liabilities:
Derivatives	49		—		49		—
Total	$	956	$	—	$	49	$	907


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		—


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

The Company may utilize information from third parties, such as pricing services and brokers, to assist in determining the fair value for certain assets and liabilities; however, management is ultimately responsible for all fair values presented in the Company’s financial statements. This includes responsibility for monitoring the fair value process, ensuring objective and reliable valuation practices and pricing of assets and liabilities, and approving changes to valuation methodologies and pricing sources. The selection of the valuation technique(s) to apply considers the definition of an exit price and the nature of the asset or liability being valued and significant expertise and judgment is required.

The Company performs initial and ongoing analysis and review of the various techniques utilized in determining fair value to ensure that they are appropriate and consistently applied, and that the various assumptions are reasonable. The Company analyzes and reviews the information and prices received from third parties to ensure that the prices represent a reasonable estimate of the fair value and to monitor controls around pricing, which includes quantitative and qualitative analysis and is overseen by the Company’s investment and accounting personnel. Examples of procedures performed include, but are not limited to, review of pricing trends, comparison of a sample of executed prices of securities sold to the fair value estimates, comparison of fair value estimates to management’s knowledge of the current market, and ongoing confirmation that third party pricing services use, wherever possible, market-based parameters for valuation. In addition, the Company utilizes both internal and external cash flow models to analyze the reasonableness of fair values utilizing credit spread and other market assumptions, where appropriate. As a result of the analysis, if the Company determines there is a more appropriate fair value based upon the available market data, the price received from the third party is adjusted accordingly. The Company also determines if the inputs used in estimated fair values received from pricing services are observable by assessing whether these inputs can be corroborated by observable market data.

For assets and liabilities reported at fair value, the Company utilizes, when available, fair values based on quoted prices in active markets that are regularly and readily obtainable. Generally, these are very liquid investments and the valuation does not require management judgment. When quoted prices in active markets are not available, fair value is based on market valuation techniques, market comparable pricing and the income approach. The use of different techniques, assumptions and inputs may have a material effect on the estimated fair values of the Company’s securities holdings. For the periods presented, the application of market standard valuation techniques applied to similar assets and liabilities has been consistent.

Fixed Maturity Securities – The fair values of the Company’s publicly-traded fixed maturity securities are generally based on prices obtained from independent pricing services. Prices from pricing services are sourced from multiple vendors, and a vendor hierarchy is maintained by asset type based on historical pricing experience and vendor expertise. The Company generally receives prices from multiple pricing services for each security, but ultimately uses the price from the vendor that is highest in the hierarchy for the respective asset type. To validate reasonableness, prices are periodically reviewed as explained above. Consistent with the fair value hierarchy described above, securities with 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. If the pricing information received from third party pricing services is 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.

If the Company ultimately concludes that pricing information received from the independent pricing service is not reflective of fair value, non-binding broker quotes are used, if available. If the Company concludes that the values from both pricing services and brokers are not reflective of fair value, an internally developed valuation may be prepared; however, this occurs infrequently. Internally developed valuations or non-binding broker quotes are also used to determine fair value in circumstances where vendor pricing is not available. These valuations may use significant unobservable inputs, which reflect the Company’s assumptions about the inputs that market participants would use in pricing the asset. Observable market data may not be available in certain circumstances such as market illiquidity and credit events related to the security. Pricing service overrides, internally developed valuations and non-binding broker quotes are generally based on significant unobservable inputs and are reflected as Level 3 in the valuation hierarchy.

The inputs used in the valuation of corporate and government securities include, but are not limited to standard market observable inputs that are derived from, or corroborated by, market observable data including market yield curve, duration, call provisions, observable prices and spreads for similar publicly traded or privately placed issues that incorporate the credit quality and industry sector of the issuer. For internal pricing of private placements and structured securities, valuation is based primarily on matrix pricing or other similar techniques using standard market inputs including spreads for actively traded securities, spreads off benchmark yields, expected prepayment speeds and volumes, current and forecasted loss severity, rating, weighted average coupon, weighted average maturity, average delinquency rates, geographic region, debt service coverage ratios and issuance-specific information including, but not limited to: collateral type, payment terms of the underlying assets, payment priority within the tranche, structure of the security, deal performance and vintage of loans.

When observable inputs are not available, the market standard valuation techniques for determining the estimated fair value of certain types of securities that trade infrequently, and therefore have little or no price transparency, rely on inputs that are significant to the estimated fair value that are not observable in the market or cannot be derived principally from or corroborated by observable market data, such as market illiquidity. Other significant unobservable inputs used in the fair value measurement of the Company’s private debt investments include a multiple of earnings before interest, taxes, depreciation and amortization (“EBITDA”). These unobservable inputs can be based in large part on management judgment or estimation, and cannot be supported by reference to market activity. Even though unobservable, these inputs are based on assumptions deemed appropriate given the circumstances and are believed to be consistent with what other market participants would use when pricing such securities.

Embedded Derivatives & Other – The fair value of embedded derivative liabilities, including those calculated by third parties, are monitored through the use of attribution reports to quantify the effect of underlying sources of fair value change, including capital market inputs based on policyholder account values, interest rates and short-term and long-term implied volatilities, from period to period. Actuarial assumptions are based on experience studies performed internally in combination with available industry information and are reviewed on a periodic basis, at least annually.

For embedded derivative liabilities associated with the underlying products in reinsurance treaties, primarily equity-indexed and variable annuity treaties, the Company utilizes a discounted cash flow model, which includes an estimate of future equity option purchases and an adjustment for a CVA. The variable annuity embedded derivative calculations are performed by third parties based on methodology and input assumptions provided by the Company. To validate the reasonableness of the resulting fair value, the Company’s internal actuaries perform reviews and analytical procedures on the results. The capital market inputs to the model, such as equity indexes, short-term equity volatility and interest rates, are generally observable. The valuation also requires certain significant inputs, which are generally not observable and accordingly, the valuation is considered Level 3 in the fair value hierarchy,

The fair value of embedded derivatives associated with funds withheld reinsurance treaties is determined based upon a total return swap technique with reference to the fair value of the investments held by the ceding company that support the Company’s funds withheld at interest asset with an adjustment for a CVA. The fair value of the underlying assets is generally based on market observable inputs using industry standard valuation techniques. The valuation also requires certain significant inputs, which are generally not observable and accordingly, the valuation is considered Level 3 in the fair value hierarchy.

Equity Securities – Equity securities consist principally of exchange-traded funds and common and preferred stock of publicly and privately traded companies. The fair values of publicly traded equity securities are primarily based on quoted market prices in active markets and are classified within Level 1 in the fair value hierarchy. Non-binding broker quotes and internally developed evaluations for equity securities are generally based on significant unobservable inputs and are reflected as Level 3 in the fair value hierarchy.

Credit Valuation Adjustment – The Company uses a structural default risk model to estimate a CVA. The input assumptions are a combination of externally derived and published values (default threshold and uncertainty), market inputs (interest rate, equity price per share, debt per share, equity price volatility) and insurance industry data (Loss Given Default), adjusted for market recoverability.

Cash Equivalents and Short-Term Investments – Cash equivalents and short-term investments include money market instruments and other highly liquid debt instruments. Money market instruments are generally valued using unadjusted quoted prices in active markets that are accessible for identical assets and are primarily classified as Level 1. The fair value of certain other cash equivalents and short-term investments, such as bonds with original maturities twelve months or less, are based upon other market observable data and are typically classified as Level 2. However, certain short-term investments may incorporate significant unobservable inputs resulting in a Level 3 classification. Various time deposits, certificates of deposit and sweeps carried as cash equivalents or short-term investments are not measured at estimated fair value and therefore are excluded from the tables presented.

FVO Contractholder-Directed Unit-Linked Investments – FVO contractholder-directed investments supporting unit-linked variable annuity type liabilities primarily consist of exchange-traded funds and, to a lesser extent, fixed maturity securities and cash and cash equivalents. The fair values of the exchange-traded securities are primarily based on quoted market prices in active markets and are classified within Level 1 of the hierarchy. The fair value of the fixed maturity contractholder-directed securities is determined on a basis consistent with the methodologies described above for fixed maturity securities and are classified within Level 2 of the hierarchy.

Derivative Assets and Derivative Liabilities – All of the derivative instruments utilized by the Company, except for longevity and mortality swaps, are classified within Level 2 on the fair value hierarchy. These derivatives are principally valued using an income approach. Valuations of interest rate contracts are based on present value techniques, which utilize significant inputs that may include the swap yield curve, London Interbank Offered Rate (“LIBOR”) basis curves, Overnight Index Swaps (“OIS”) curves, and repurchase rates. Valuations of foreign currency contracts are based on present value techniques, which utilize significant inputs that may include the swap yield curve, LIBOR basis curves, currency spot rates, and cross currency basis curves. Valuations of credit contracts, are based on present value techniques, which utilize significant inputs that may include the swap yield curve, credit curves, and recovery rates. Valuations of equity market contracts, are based on present value techniques, which utilize significant inputs that may include the swap yield curve, spot equity index levels, and dividend yield curves. Valuations of equity market contracts, option-based, are based on option pricing models, which utilize significant inputs that may include the swap yield curve, spot equity index levels, dividend yield curves, and equity volatility.

Longevity and Mortality Swaps – The Company utilizes a discounted cash flow model to estimate the fair value of longevity and mortality swaps. The fair value of these swaps includes an accrual for premiums payable and receivable. Some inputs to the valuation model are generally observable, such as interest rates and actual population mortality experience. The valuation also requires significant inputs that are generally not observable and, accordingly, the valuation is considered Level 3 in the fair value hierarchy.


	Estimated Fair Value				Valuation	Unobservable	Range (Weighted Average)
Assets:	2020		2019		Technique	Input	2020	2019
Corporate	$	37	$	1,070	Market comparable securities	Liquidity premium	0-1% (1%)	0-2% (1%)
						EBITDA Multiple	5.2x-11.2x (7.1x)	5.2x-7.1x (6.7x)
ABS	87		101		Market comparable securities	Liquidity premium	1-18% (1%)	0-4% (1%)
U.S. government	14		16		Market comparable securities	Liquidity premium	0-1% (1%)	0-1% (1%)

Other foreign government	—		16		Market comparable securities	Liquidity premium	0%	0-1% (1%)
Equity securities	10		32		Market comparable securities	Liquidity premium	0%	4%
						EBITDA Multiple	6.9x-10.6x (7.9x)	6.9x-9.3x (7.8x)
Funds withheld at interest – embedded derivatives	58		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	752		768		Discounted cash flow	Mortality	0-100% (3%)	0-100% (2%)
						Lapse	0-35% (13%)	0-35% (13%)
						Withdrawal	0-5% (3%)	0-5% (3%)
						Option budget projection	2-4% (2%)	2-4% (2%)
Interest-sensitive contract liabilities – embedded derivatives – variable annuities	155		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%)


For the year ended December 31, 2020:	Fixed maturity securities – available-for-sale												Funds withheld at interest –embedded derivatives & other		Other assets – 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	2		—		—		—		—		—		(4)		—		—
Investment related gains (losses), net	(22)		—		—		—		(13)		—		(63)		—		8

Interest credited	—		—		—		—		—		—		—		—		(30)

Included in other comprehensive income	28		1		(7)		1		—		—		—		—		—
Other revenues	—		—		—		—		—		—		—		—		—
Purchases(1)	1,193		—		149		—		3		17		60		—		(32)
Sales(1)	(182)		—		(5)		—		—		—		—		—		—
Settlements(1)	(229)		—		(59)		(3)		—		(3)		—		—		77
Transfers into Level 3	57		—		38		—		—		—		—		—		—
Transfers out of Level 3	(4)		(704)		(70)		—		(14)		(1)		—		—		—
Fair value, end of period	$	3,029	$	17	$	254	$	23	$	53	$	15	$	114	$	—	$	(907)
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	$	—	$	—	$	—	$	—	$	—	$	—	$	(4)	$	—	$	—
Investment related gains (losses), net	(23)		—		—		—		(13)		—		(63)		—		(2)
Other revenues	—		—		—		—		—		—		—		—		—

Interest credited	—		—		—		—		—		—		—		—		(107)
Included in other comprehensive income	(34)		1		(8)		1		—		—		—		—		—


For the year ended December 31, 2019:	Fixed maturity securities – available-for-sale												Funds withheld at interest –embedded derivatives		Other assets – 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	$	48	$	(945)
Total gains/losses (realized/unrealized)
Included in earnings, net:
Investment income, net of related expenses	1		15		—		—		—		—		—		—		—
Investment related gains (losses), net	(11)		—		—		—		12		—		11		—		5

Interest credited	—		—		—		—		—		—		—		—		(57)

Included in other comprehensive income	48		162		4		1		—		(1)		—		(2)		—
Other revenues	—		—		—		—		—		—		—		12		—
Purchases(1)	1,050		10		85		—		33		30		—		—		(17)
Sales(1)	(81)		—		(1)		—		(1)		(1)		—		—		—
Settlements(1)	(194)		—		(63)		(4)		—		(1)		—		(58)		84
Transfers into Level 3	43		—		86		—		—		—		—		—		—
Transfers out of Level 3	(1)		—		(6)		—		—		(27)		—		—		—
Fair value, end of period	$	2,186	$	720	$	208	$	25	$	77	$	2	$	121	$	—	$	(930)
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	$	2	$	15	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Investment related gains (losses), net	(11)		—		—		—		12		—		11		—		(3)
Other revenues	—		—		—		—		—		—		—		—		—

Interest credited	—		—		—		—		—		—		—		—		(140)


For the year ended December 31, 2018:	Fixed maturity securities – available-for-sale												Funds withheld at interest –embedded derivatives		Other assets – 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	$	1,337	$	599	$	235	$	64	$	—	$	3	$	122	$	39	$	(1,014)
Total gains/losses (realized/unrealized)
Included in earnings, net:
Investment income, net of related expenses	(1)		14		—		—		—		—		—		—		—
Investment related gains (losses), net	(5)		—		2		—		(13)		—		(12)		—		(15)

Interest credited	—		—		—		—		—		—		—		—		27

Included in other comprehensive income	(33)		(80)		(3)		—		—		—		—		(2)		—
Other revenues	—		—		—		—		—		—		—		9		—
Purchases(1)	509		—		94		—		14		3		—		—		(19)
Sales(1)	(106)		—		(7)		—		(7)		—		—		—		—
Settlements(1)	(273)		—		(62)		(5)		—		(1)		—		2		76
Transfers into Level 3	10		—		78		10		39		—		—		—		—
Transfers out of Level 3	(107)		—		(234)		(41)		—		(3)		—		—		—
Fair value, end of period	$	1,331	$	533	$	103	$	28	$	33	$	2	$	110	$	48	$	(945)
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)	$	14	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Investment related gains (losses), net	(6)		—		—		—		(16)		—		(12)		—		(22)
Other revenues	—		—		—		—		—		—		—		9		—

Interest credited	—		—		—		—		—		—		—		—		(49)

(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.

(1)Impairments on these investments were recognized at estimated fair value determined using the net asset values of the Company’s ownership interest as provided in the financial statements of the investees. Real estate joint ventures were recognized at estimated fair value determined using historical and forecasted information for specific properties, including net operating income, occupancy, and sales levels. The market for these investments has limited activity and price transparency.

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 December 31, 2020 and 2019 (dollars in millions). 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.


			Estimated Fair		Fair Value Measurement Using:
December 31, 2020:	Carrying Value (1)		Value		Level 1		Level 2		Level 3		NAV
Assets:
Mortgage loans on real estate	$	5,787	$	6,167	$	—	$	—	$	6,167	$	—
Policy loans	1,258		1,258		—		1,258		—		—
Funds withheld at interest	5,292		5,676		—		—		5,676		—
Cash and cash equivalents	1,930		1,930		1,930		—		—		—
Short-term investments	30		30		30		—		—		—
Other invested assets	1,482		1,601		5		89		1,018		489
Accrued investment income	511		511		—		511		—		—
Liabilities:
Interest-sensitive contract liabilities	$	18,106	$	19,683	$	—	$	—	$	19,683	$	—
Long-term debt	3,573		3,901		—		—		3,901		—
Collateral finance and securitization notes	388		351		—		—		351		—

December 31, 2019:
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		—

Mortgage Loans on Real Estate – The fair value of mortgage loans on real estate is estimated by discounting cash flows, both principal and interest, using current interest rates for mortgage loans with similar credit ratings and similar remaining maturities. As such, inputs include current treasury yields and spreads, which are based on the credit rating and average life of the loan, corresponding to the market spreads. The valuation of mortgage loans on real estate is considered Level 3 in the fair value hierarchy.

Funds Withheld at Interest – The carrying value of funds withheld at interest approximates fair value except where the funds withheld are specifically identified in the agreement. When funds withheld are specifically identified in the agreement, the fair value is based on the fair value of the underlying assets that are held by the ceding company. Ceding companies use a variety of sources and pricing methodologies, which are not transparent to the Company and may include significant unobservable inputs, to value the securities that are held in distinct portfolios, therefore the valuation of these funds withheld assets are considered Level 3 in the fair value hierarchy.

Other Invested Assets – This primarily includes limited partnership interests accounted for using the cost method, FHLB common stock, cash collateral and lifetime mortgages. The fair value of limited partnership interests and other investments accounted for using the cost method is determined using the NAV of the Company’s ownership interest as provided in the financial statements of the investees. The fair value of the Company’s common stock investment in the FHLB is considered to be the carrying value and it is considered Level 2 in the fair value hierarchy. The fair value of the Company’s cash collateral is considered to be the carrying value and considered to be Level 1 in the fair value hierarchy. The fair value of the Company’s lifetime mortgage loan portfolio, considered Level 3 in the fair value hierarchy, is estimated by discounting cash flows, both principal and interest, using a risk-free rate plus an illiquidity premium. The cash flow analysis considers future expenses, changes in property prices, and actuarial analysis of borrower behavior, mortality and morbidity.

Interest-Sensitive Contract Liabilities – The carrying and fair values of interest-sensitive contract liabilities reflected in the table above exclude contracts with significant mortality risk. The fair value of the Company’s interest-sensitive contract liabilities utilizes a market standard technique with both capital market inputs and policyholder behavior assumptions, as well as cash values adjusted for recapture fees. The capital market inputs to the model, such as interest rates, are generally observable. Policyholder behavior assumptions are generally not observable and may require use of significant management judgment. The valuation of interest-sensitive contract liabilities is considered Level 3 in the fair value hierarchy.

Long-term Debt/Collateral Finance and Securitization Notes – The fair value of the Company’s long-term debt, and collateral finance and securitization notes is generally estimated by discounting future cash flows using market rates currently available for debt with similar remaining maturities and reflecting the credit risk of the Company, including inputs when available, from actively traded debt of the Company or other companies with similar credit quality. The valuation of long-term debt, and collateral finance and securitization notes is generally obtained from brokers and is considered Level 3 in the fair value hierarchy.