XML 41 R32.htm IDEA: XBRL DOCUMENT
v3.23.1

Fair Value (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2022
Fair Value Disclosures [Abstract] |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Financial assets measured at fair value on a recurring basis on the consolidated balance sheets at December 31, 2022 and 2021 were as follows:
In millions | Level 1 |  | Level 2 |  | Level 3 |  | Total
December 31, 2022 |  |  |  |  |  |  |
Cash and cash equivalents (1) | $ | 6,902 |  |  | $ | 6,049 |  |  | $ | — |  |  | $ | 12,951 |
Debt securities: |  |  |  |  |  |  |
U.S. government securities | 1,860 |  |  | 32 |  |  | — |  |  | 1,892 |
States, municipalities and political subdivisions | — |  |  | 2,272 |  |  | — |  |  | 2,272 |
U.S. corporate securities | — |  |  | 8,897 |  |  | 61 |  |  | 8,958 |
Foreign securities | — |  |  | 2,542 |  |  | 8 |  |  | 2,550 |
Residential mortgage-backed securities | — |  |  | 757 |  |  | — |  |  | 757 |
Commercial mortgage-backed securities | — |  |  | 1,018 |  |  | — |  |  | 1,018 |
Other asset-backed securities | — |  |  | 2,810 |  |  | — |  |  | 2,810 |
Redeemable preferred securities | — |  |  | 23 |  |  | — |  |  | 23 |
Total debt securities | 1,860 |  |  | 18,351 |  |  | 69 |  |  | 20,280 |
Equity securities | 116 |  |  | — |  |  | 60 |  |  | 176 |
Total | $ | 8,878 |  |  | $ | 24,400 |  |  | $ | 129 |  |  | $ | 33,407 |
December 31, 2021 |  |  |  |  |  |  |
Cash and cash equivalents | $ | 4,954 |  |  | $ | 4,454 |  |  | $ | — |  |  | $ | 9,408 |
Debt securities: |  |  |  |  |  |  |
U.S. government securities | 2,372 |  |  | 44 |  |  | — |  |  | 2,416 |
States, municipalities and political subdivisions | — |  |  | 3,086 |  |  | 5 |  |  | 3,091 |
U.S. corporate securities | — |  |  | 9,697 |  |  | 38 |  |  | 9,735 |
Foreign securities | — |  |  | 2,983 |  |  | 10 |  |  | 2,993 |
Residential mortgage-backed securities | — |  |  | 875 |  |  | — |  |  | 875 |
Commercial mortgage-backed securities | — |  |  | 1,310 |  |  | — |  |  | 1,310 |
Other asset-backed securities | — |  |  | 2,789 |  |  | 3 |  |  | 2,792 |
Redeemable preferred securities | — |  |  | 28 |  |  | — |  |  | 28 |
Total debt securities | 2,372 |  |  | 20,812 |  |  | 56 |  |  | 23,240 |
Equity securities | 114 |  |  | — |  |  | 55 |  |  | 169 |
Total | $ | 7,440 |  |  | $ | 25,266 |  |  | $ | 111 |  |  | $ | 32,817 |
_______________________________________ (1)Includes cash and cash equivalents of $6 million which have been accounted for as assets held for sale and are included in assets held for sale on the consolidated balance sheet at December 31, 2022. See Note 2 ‘‘Acquisitions, Divestitures and Asset Sales’’ for additional information.
Schedule of Changes in Level 3 Financial Assets | The changes in the balances of Level 3 financial assets during the year ended December 31, 2022 were as follows:
In millions | States, municipalities and political subdivisions |  | U.S. corporate securities |  | Foreign securities |  | Other asset- backed securities |  |  |  | Equity securities |  | Total
Beginning balance | $ | 5 |  |  | $ | 38 |  |  | $ | 10 |  |  | $ | 3 |  |  |  |  | $ | 55 |  |  | $ | 111 |
Net realized and unrealized capital losses: |  |  |  |  |  |  |  |  |  |  |  |  |
Included in earnings | — |  |  | (8) |  |  | — |  |  | — |  |  |  |  | (1) |  |  | (9) |
Included in other comprehensive loss | — |  |  | (5) |  |  | (2) |  |  | (2) |  |  |  |  | — |  |  | (9) |
Purchases | — |  |  | 36 |  |  | — |  |  | 30 |  |  |  |  | 29 |  |  | 95 |
Sales | (5) |  |  | — |  |  | — |  |  | (2) |  |  |  |  | (23) |  |  | (30) |
Settlements | — |  |  | — |  |  | — |  |  | — |  |  |  |  | — |  |  | — |
Transfers out of Level 3, net | — |  |  | — |  |  | — |  |  | (29) |  |  |  |  | — |  |  | (29) |
Ending balance | $ | — |  |  | $ | 61 |  |  | $ | 8 |  |  | $ | — |  |  |  |  | $ | 60 |  |  | $ | 129 |
The changes in the balances of Level 3 financial assets during the year ended December 31, 2021 were as follows:
In millions | States, municipalities and political subdivisions |  | U.S. corporate securities |  | Foreign securities |  | Other asset- backed securities |  | Redeemable preferred securities |  | Equity securities |  | Total |  |  |  |  |  |
Beginning balance | $ | 1 |  |  | $ | 52 |  |  | $ | — |  |  | $ | — |  |  | $ | 1 |  |  | $ | 30 |  |  | $ | 84 |  |  |  |  |  |  |
Net realized and unrealized capital gains (losses): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Included in earnings | — |  |  | (10) |  |  | — |  |  | — |  |  | 2 |  |  | 13 |  |  | 5 |  |  |  |  |  |  |
Included in other comprehensive income | — |  |  | (3) |  |  | — |  |  | — |  |  | (1) |  |  | — |  |  | (4) |  |  |  |  |  |  |
Purchases | — |  |  | 1 |  |  | — |  |  | 3 |  |  | — |  |  | 13 |  |  | 17 |  |  |  |  |  |  |
Sales | (1) |  |  | (1) |  |  | — |  |  | — |  |  | (2) |  |  | (1) |  |  | (5) |  |  |  |  |  |  |
Settlements | — |  |  | (1) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (1) |  |  |  |  |  |  |
Transfers into Level 3, net | 5 |  |  | — |  |  | 10 |  |  | — |  |  | — |  |  | — |  |  | 15 |  |  |  |  |  |  |
Ending balance | $ | 5 |  |  | $ | 38 |  |  | $ | 10 |  |  | $ | 3 |  |  | $ | — |  |  | $ | 55 |  |  | $ | 111 |  |  |  |  |  |  |
The change in net unrealized capital losses included in other comprehensive income associated with Level 3 financial assets which were held as of December 31, 2021 was $4 million during the year ended December 31, 2021. The total gross transfers into (out of) Level 3 during the years ended December 31, 2022 and 2021 were as follows:
In millions | 2022 |  | 2021
Gross transfers into Level 3 | $ | — |  |  | $ | 15 |
Gross transfers out of Level 3 | (29) |  |  | — |
Net transfers into (out of) Level 3 | $ | (29) |  |  | $ | 15 |
Schedule of Carrying Value and Fair Value By Level of Fair Value Hierarchy | The carrying value and estimated fair value classified by level of fair value hierarchy for financial instruments carried on the consolidated balance sheets at adjusted cost or contract value at December 31, 2022 and 2021 were as follows:
| Carrying Value |  | Estimated Fair Value
In millions |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
December 31, 2022 |  |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |
Mortgage loans | $ | 1,044 |  |  | $ | — |  |  | $ | — |  |  | $ | 978 |  |  | $ | 978 |
Equity securities (1) | 411 |  |  | N/A |  | N/A |  | N/A |  | N/A
Liabilities: |  |  |  |  |  |  |  |  |
Investment contract liabilities: |  |  |  |  |  |  |  |  |
With a fixed maturity | 3 |  |  | — |  |  | — |  |  | 3 |  |  | 3 |
Without a fixed maturity | 332 |  |  | — |  |  | — |  |  | 305 |  |  | 305 |
Long-term debt (2) | 52,257 |  |  | 47,653 |  |  | — |  |  | — |  |  | 47,653 |
December 31, 2021 |  |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |
Mortgage loans | $ | 902 |  |  | $ | — |  |  | $ | — |  |  | $ | 907 |  |  | $ | 907 |
Equity securities (1) | 126 |  |  | N/A |  | N/A |  | N/A |  | N/A
Liabilities: |  |  |  |  |  |  |  |  |
Investment contract liabilities: |  |  |  |  |  |  |  |  |
With a fixed maturity | 5 |  |  | — |  |  | — |  |  | 5 |  |  | 5 |
Without a fixed maturity | 336 |  |  | — |  |  | — |  |  | 373 |  |  | 373 |
Long-term debt | 56,176 |  |  | 64,157 |  |  | — |  |  | — |  |  | 64,157 |
______________________________________ (1)It was not practical to estimate the fair value of these cost-method investments as it represents shares of unlisted companies. See Note 1 ‘‘Significant Accounting Policies’’ for additional information regarding the valuation of cost method investments. (2)Includes long-term debt of $3 million which has been accounted for as liabilities held for sale and is included in liabilities held for sale on the consolidated balance sheet at December 31, 2022. See Note 2 ‘‘Acquisitions, Divestitures and Asset Sales’’ for additional information.
Schedule of Fair Value of Separate Accounts by Major Category of Investment | Separate Accounts financial assets at December 31, 2022 and 2021 were as follows:
| December 31, 2022 |  | December 31, 2021
In millions | Level 1 |  | Level 2 |  | Level 3 |  | Total |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Cash and cash equivalents | $ | 2 |  |  | $ | 154 |  |  | $ | — |  |  | $ | 156 |  |  | $ | 2 |  |  | $ | 186 |  |  | $ | — |  |  | $ | 188 |
Debt securities | 712 |  |  | 1,965 |  |  | — |  |  | 2,677 |  |  | 1,233 |  |  | 3,048 |  |  | — |  |  | 4,281 |
Equity securities | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | — |  |  | 1 |
Common/collective trusts | — |  |  | 480 |  |  | — |  |  | 480 |  |  | — |  |  | 547 |  |  | — |  |  | 547 |
Total (1) | $ | 714 |  |  | $ | 2,599 |  |  | $ | — |  |  | $ | 3,313 |  |  | $ | 1,235 |  |  | $ | 3,782 |  |  | $ | — |  |  | $ | 5,017 |
_____________________________________ (1)Excludes $85 million of other payables and $70 million of other receivables at December 31, 2022 and 2021, respectively. The following table shows the fair value of assets, by major investment category, supporting Separate Accounts as of December 31, 2022 and 2021:
In millions | 2022 |  | 2021
Cash and cash equivalents | $ | 156 |  |  | $ | 188 |
Debt securities: |  |  |
U.S. government securities | 717 |  |  | 1,234 |
States, municipalities and political subdivisions | 27 |  |  | 48 |
U.S. corporate securities | 1,667 |  |  | 2,339 |
Foreign securities | 201 |  |  | 325 |
Residential mortgage-backed securities | 41 |  |  | 144 |
Commercial mortgage-backed securities | 6 |  |  | 57
Other asset-backed securities | 18 |  |  | 134 |
Total debt securities | 2,677 |  |  | 4,281 |
Equity securities and common/collective trusts | 480 |  |  | 548 |
Total (1) | $ | 3,313 |  |  | $ | 5,017 |
_____________________________________________ (1)Excludes $85 million of other payables and $70 million of other receivables at December 31, 2022 and 2021, respectively.

X
- Definition Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19279-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueAssetsMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -URI https://asc.fasb.org/extlink&oid=123594938&loc=d3e13467-108611 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
Name: | us-gaap_ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of fair value of asset supporting separate account. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 80 -Section 50 -Paragraph 1 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=124508989&loc=d3e19393-158473 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 20 -Section 55 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=124504833&loc=d3e7104-158389 Reference 3: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 80 -Section 55 -Paragraph 17 -URI https://asc.fasb.org/extlink&oid=124505678&loc=SL117422397-158474 + Details
Name: | us-gaap_ScheduleOfFairValueOfSeparateAccountsByMajorCategoryOfInvestmentTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration