Equity method investments

  
immaterial as of December 31, 2021 and 2020. See Note 16 and Note 17 for further information on the credit risk of derivative instruments and related collateral.Securities sold but not yet purchased represent obligations of the Company to deliver specified securities that it does not yet own, creating a liability to purchase the security in the market at prevailing prices. When available, the fair value of securities is based on quoted prices in active markets. If quoted prices are not available, fair values are obtained from nationally-recognized pricing services, or other model-based valuation techniques such as the present value of cash flows. Level 1 securities sold but not yet purchased primarily include equity securities and U.S. Treasuries traded in active markets. Level 2 securities sold but not yet purchased primarily include corporate bonds.Contingent consideration liabilities consist of earn-outs and/or deferred payments related to the Company’s acquisitions. Contingent consideration liabilities are recorded at fair value utilizing a discounted cash flow model using an unobservable input (discount rate). Given the use of a significant unobservable input, the fair value of contingent consideration liabilities is classified as Level 3 within the fair value hierarchy.Fair Value on a Nonrecurring BasisThe Company assesses its investment in affordable housing partnerships for impairment. The investments that are determined to be impaired are written down to their fair value. The Company uses a discounted cash flow model to measure the fair value of these investments. Inputs to the discounted cash flow model are estimates of future net operating losses and tax credits available to the Company and discount rates based on market condition and the financial strength of the syndicator (general partner). The balance of affordable housing partnerships measured at fair value on a nonrecurring basis was $93 million and $101 million as of December 31, 2021 and 2020, respectively, and is classified as Level 3 in the fair value hierarchy. The Company also measured certain equity-method investments at fair value on a nonrecurring basis using a discounted cash flow model. Inputs to the model include projected cash flows and a market-based discount rate. At December 31, 2021, the fair value of these investments was $7 million and is classified as Level 3 in the fair value hierarchy.Assets and Liabilities Not Reported at Fair ValueThe following tables provide the carrying value and the estimated fair value of financial instruments that are not reported at fair value:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   | December 31, 2021 |
| Carrying Value |  | Fair Value |
| Level 1 |  | Level 2 |  | Level 3 |  | Total |
| (in millions) |
| Financial Assets |  |  |  |  |  |  |  |  |  |
| Mortgage loans, net | $ | 1,953  |  |  | $ | —  |  |  | $ | 49  |  |  | $ | 1,990  |  |  | $ | 2,039  |  |
| Policy loans | 835  |  |  | —  |  |  | 835  |  |  | —  |  |  | 835  |  |
| Receivables | 10,509  |  |  | 135  |  |  | 1,669  |  |  | 9,404  |  |  | 11,208  |  |
| Restricted and segregated cash | 2,195  |  |  | 2,195  |  |  | —  |  |  | —  |  |  | 2,195  |  |
| Other investments and assets | 368  |  |  | —  |  |  | 319  |  |  | 49  |  |  | 368  |  |
|  |  |  |  |  |  |  |  |  |  |
| Financial Liabilities |  |  |  |  |  |  |  |  |  |
| Policyholder account balances, future policy benefits and claims | $ | 12,342  |  |  | $ | —  |  |  | $ | —  |  |  | $ | 13,264  |  |  | $ | 13,264  |  |
| Investment certificate reserves | 5,297  |  |  | —  |  |  | —  |  |  | 5,290  |  |  | 5,290  |  |
| Banking and brokerage deposits | 14,931  |  |  | 14,931  |  |  | —  |  |  | —  |  |  | 14,931  |  |
| Separate account liabilities — investment contracts | 5,657  |  |  | —  |  |  | 5,657  |  |  | —  |  |  | 5,657  |  |
| Debt and other liabilities | 3,214  |  |  | 206  |  |  | 3,129  |  |  | 9  |  |  | 3,344  |  |

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