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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2020

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of December 31, 2020
			Total			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets accounted for at fair value on a recurring basis
Fixed maturities, AFS
Asset backed securities ("ABS")			$	1,564		$	—		$	1,564		$	—
Collateralized loan obligations ("CLOs")			2,780			—			2,420			360
Commercial mortgage-backed securities ("CMBS")			4,484			—			4,407			77
Corporate			20,273			—			19,392			881
Foreign government/government agencies			919			—			913			6
Municipal			9,503			—			9,503			—
Residential mortgage-backed securities ("RMBS")			4,107			—			3,726			381
U.S. Treasuries			1,405			529			876			—
Total fixed maturities			45,035			529			42,801			1,705
Equity securities, at fair value			1,438			872			496			70
Derivative assets
Credit derivatives			21			—			21			—
Foreign exchange derivatives			1			—			1			—
Interest rate derivatives			1			—			1			—
Total derivative assets [1]			23			—			23			—
Short-term investments			3,283			2,663			590			30
Total assets accounted for at fair value on a recurring basis			$	49,779		$	4,064		$	43,910		$	1,805
Liabilities accounted for at fair value on a recurring basis
Derivative liabilities
Foreign exchange derivatives			$	(14)		$	—		$	(14)		$	—
Interest rate derivatives			(70)			—			(70)			—
Total derivative liabilities [2]			(84)			—			(84)			—
Total liabilities accounted for at fair value on a recurring basis			$	(84)		$	—		$	(84)		$	—

Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of December 31, 2019
			Total			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets accounted for at fair value on a recurring basis
Fixed maturities, AFS
ABS			$	1,476		$	—		$	1,461		$	15
CLOs			2,183			—			2,088			95
CMBS			4,338			—			4,329			9
Corporate			17,396			—			16,664			732
Foreign government/government agencies			1,123			—			1,120			3
Municipal			9,498			—			9,498			—
RMBS			4,869			—			4,309			560
U.S. Treasuries			1,265			330			935			—
Total fixed maturities			42,148			330			40,404			1,414
Equity securities, at fair value			1,657			1,401			183			73
Derivative assets
Credit derivatives			11			—			11			—
Interest rate derivatives			1			—			1			—
Total derivative assets [1]			12			—			12			—
Short-term investments			2,921			1,028			1,878			15
Total assets accounted for at fair value on a recurring basis			$	46,738		$	2,759		$	42,477		$	1,502
Liabilities accounted for at fair value on a recurring basis
Derivative liabilities
Credit derivatives			$	(1)		$	—		$	(1)		$	—
Equity derivatives			(15)			—			—			(15)
Foreign exchange derivatives			(2)			—			(2)			—
Interest rate derivatives			(60)			—			(60)			—
Total derivative liabilities [2]			(78)			—			(63)			(15)
Contingent consideration [3]			(22)			—			—			(22)
Total liabilities accounted for at fair value on a recurring basis			$	(100)		$	—		$	(63)		$	(37)

[1]Includes derivative instruments in a net positive fair value position after consideration of the accrued interest and impact of collateral posting requirements which may be imposed by agreements and applicable law. See footnote 2 to this table for derivative liabilities.

[2]Includes derivative instruments in a net negative fair value position (derivative liability) after consideration of the accrued interest and impact of collateral posting requirements which may be imposed by agreements and applicable law.

[3]For additional information, see the Contingent Consideration section below.

Fair Value Inputs, Assets, Quantitative Information

Significant Unobservable Inputs for Level 3 - Securities

Assets accounted for at fair value on a recurring basis

Fair Value

Predominant Valuation Technique

Significant Unobservable Input

Minimum

Maximum

Weighted Average [1]

Impact of Increase in Input on Fair Value [2]

As of December 31, 2020

CLOs [3]

$

340

Discounted cash flows

Spread

304 bps

305 bps

304 bps

Decrease

CMBS [3]

$

20

Discounted cash flows

Spread (encompasses prepayment, default risk and loss severity)

255 bps

975 bps

688 bps

Decrease

Corporate [4]

$

749

Discounted cash flows

Spread

110 bps

692 bps

293 bps

Decrease

RMBS [3]

$

364

Discounted cash flows

Spread [6]

7 bps

937 bps

119 bps

Decrease

Constant prepayment rate [6]

—%

10%

5%

Decrease [5]

Constant default rate [6]

2%

6%

3%

Decrease

Loss severity [6]

—%

100%

84%

Decrease

As of December 31, 2019

CLOs [3]

$

95

Discounted cash flows

Spread

246 bps

246 bps

246 bps

Decrease

CMBS [3]

$

1

Discounted cash flows

Spread (encompasses prepayment, default risk and loss severity)

9 bps

1,832 bps

161 bps

Decrease

Corporate [4]

$

633

Discounted cash flows

Spread

93 bps

788 bps

236 bps

Decrease

RMBS [3]

$

560

Discounted cash flows

Spread [6]

5 bps

233 bps

79 bps

Decrease

Constant prepayment rate [6]

—%

11%

6%

Decrease [5]

Constant default rate [6]

1%

6%

3%

Decrease

Loss severity [6]

—%

100%

70%

Decrease

[1]The weighted average is determined based on the fair value of the securities.

[2]Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table.

[3]Excludes securities for which the Company bases fair value on broker quotations.

[4]Excludes securities for which the Company bases fair value on broker quotations; however, included are broker priced lower-rated private placement securities for which the Company receives spread and yield information to corroborate the fair value.

[5]Decrease for above market rate coupons and increase for below market rate coupons.

[6]Generally, a change in the assumption used for the constant default rate would have been accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumption used for constant prepayment rate and would have resulted in wider spreads.

Significant Unobservable Inputs for Level 3 - Derivatives [1]

			Fair Value			Predominant Valuation Technique			Significant Unobservable Input			Minimum			Maximum			Weighted Average [2]			Impact of Increase in Input on Fair Value [3]
As of December 31, 2019
Equity options			$	(15)		Option model			Equity volatility			13		%	28		%	17		%	Increase

[1]As of December 31, 2020, the fair values of the Company's level 3 derivatives were less than $1 and are excluded from the table.

[2]The weighted average is determined based on the fair value of the derivatives.

[3]Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table. Changes are based on long positions, unless otherwise noted. Changes in fair value will be inversely impacted for short positions.

Fair Value, Assets (Liabilities) Measured on Recurring Basis, Unobservable Input Reconciliation

Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Year Ended December 31, 2020

									Total realized/unrealized gains (losses)
						Fair value as of January 1, 2020			Included in net income [1]			Included in OCI [2]			Purchases			Settlements			Sales			Transfers into Level 3 [3]			Transfers out of Level 3 [3]			Fair value as of December 31, 2020
Assets
Fixed Maturities, AFS
			ABS			$	15		$	—		$	(1)		$	43		$	—		$	—		$	—		$	(57)		$	—
			CLOs			95			—			1			389			(43)			—			—			(82)			360
			CMBS			9			—			3			79			(5)			—			13			(22)			77
			Corporate			732			(31)			31			272			(143)			(36)			486			(430)			881
			Foreign Govt./Govt. Agencies			3			—			—			6			—			—			—			(3)			6
			Municipal			—			(3)			2			—			—			(6)			7			—			—
			RMBS			560			—			(11)			66			(182)			(7)			—			(45)			381
Total Fixed Maturities, AFS						1,414			(34)			25			855			(373)			(49)			506			(639)			1,705
Equity Securities, at fair value						73			(10)			—			6			—			—			1			—			70
Short-term investments						15			—			—			30			(15)			—			—			—			30
Total Assets						1,502			(44)			25			891			(388)			(49)			507			(639)			1,805
Liabilities
Derivatives, net [4]
			Equity			(15)			36			—			—			(21)			—			—			—			—
Total Derivatives, net [4]						(15)			36			—			—			(21)			—			—			—			—
Contingent Consideration						(22)			12			—			—			10			—			—			—			—
Total Liabilities						$	(37)		$	48		$	—		$	—		$	(11)		$	—		$	—		$	—		$	—

Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Year Ended December 31, 2019

									Total realized/unrealized gains (losses)
						Fair value as of January 1, 2019			Included in net income [1]			Included in OCI [2]			Purchases			Settlements			Sales			Transfers into Level 3 [3]			Transfers out of Level 3 [3]			Fair value as of December 31, 2019
Assets
Fixed Maturities, AFS
			ABS			$	10		$	—		$	—		$	20		$	(1)		$	—		$	—		$	(14)		$	15
			CLOs			100			—			—			329			(127)			(6)			—			(201)			95
			CMBS			12			—			1			34			(4)			—			—			(34)			9
			Corporate			520			(4)			16			354			(59)			(88)			61			(68)			732
			Foreign Govt./Govt. Agencies			3			—			—			—			—			—			—			—			3
			RMBS			920			1			(8)			134			(214)			(35)			—			(238)			560
Total Fixed Maturities, AFS						1,565			(3)			9			871			(405)			(129)			61			(555)			1,414
Equity Securities, at fair value						77			—			—			9			—			(13)			—			—			73
Derivatives, net [4]
			Interest rate			1			(1)			—			—			—			—			—			—			—
Total Derivatives, net [4]						1			(1)			—			—			—			—			—			—			—
Short-term investments						—			—			—			15			—			—			—			—			15
Total Assets						1,643			(4)			9			895			(405)			(142)			61			(555)			1,502
Liabilities
Derivatives, net [4]
			Equity			3			(18)			—			—			—			—			—			—			(15)
Total Derivatives, net [4]						3			(18)			—			—			—			—			—			—			(15)
Contingent Considerations						(35)			(7)			—			—			20			—			—			—			(22)
Total Liabilities						$	(32)		$	(25)		$	—		$	—		$	20		$	—		$	—		$	—		$	(37)

[1]Amounts in these columns are generally reported in net realized capital gains (losses). All amounts are before income taxes.

[2]All amounts are before income taxes.

[3]Transfers in and/or (out) of Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs. Transfers into and out of Level 3 for the year ended December 31, 2020, were primarily related to private securities that were priced using internal matrix pricing in the prior period, but changed to broker pricing in the current period and inversely, private securities that were priced using broker pricing in the prior period, but changed to internal matrix pricing in the current period.

[4]Derivative instruments are reported in this table on a net basis for asset (liability) positions and reported in the Consolidated Balance Sheets in other investments and other liabilities.

Changes in Unrealized Gains (Losses) for Financial Instruments Classified as Level 3 Still Held at Year End

						December 31,
						2020						2019
						Changes in Unrealized Gain/(Loss) included in Net Income [1] [2]			Changes in Unrealized Gain/(Loss) included in OCI [3]			Changes in Unrealized Gain/(Loss) included in Net Income [1] [2]			Changes in Unrealized Gain/(Loss) included in OCI [3]
Assets
Fixed Maturities, AFS
			CLOs			$	—		$	1		$	—		$	—
			CMBS			—			4			—			1
			Corporate			(21)			24			(2)			15
			Foreign Govt./Govt. Agencies			—			—			—			1
			RMBS			—			(10)			—			(7)
Total Fixed Maturities, AFS						(21)			19			(2)			10
Equity Securities, at fair value						(9)			—			1			—
Derivatives, net
			Equity			—			—			(18)			—
			Interest rate			—			—			(1)			—
Total Derivatives, net						—			—			(19)			—
Total Assets						(30)			19			(20)			10
Liabilities
Contingent Consideration						12			—			(7)			—
Total Liabilities						$	12		$	—		$	(7)		$	—

[1]All amounts in these rows are reported in net realized capital gains (losses). All amounts are before income taxes.

[2]Amounts presented are for Level 3 only and therefore may not agree to other disclosures included herein.

[3]Changes in unrealized gain (loss) on fixed maturities, AFS are reported in changes in net unrealized gain on securities in the Consolidated Statements of Comprehensive Income. Changes in interest rate derivatives are reported in changes in net gain on cash flow hedging instruments in the Consolidated Statements of Comprehensive Income.

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments

Financial Assets and Liabilities Not Carried at Fair Value

			December 31, 2020												December 31, 2019
			Fair Value Hierarchy Level			Carrying Amount [1]			Fair Value						Fair Value Hierarchy Level			Carrying Amount [1]			Fair Value
Assets
Mortgage loans			Level 3			$	4,493		$	4,792					Level 3			$	4,215		$	4,350
Liabilities
Other policyholder funds and benefits payable			Level 3			$	701		$	703					Level 3			$	763		$	765
Senior notes [2]			Level 2			$	3,262		$	4,363					Level 2			$	3,759		$	4,456
Junior subordinated debentures [2]			Level 2			$	1,090		$	1,107					Level 2			$	1,089		$	1,153

[1] As of December 31, 2020, carrying amount of mortgage loans is net of ACL of $38.

[2] Included in long-term debt in the Consolidated Balance Sheets, except for current maturities, which are included in short-term debt.

X

- Definition

Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis.

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Tabular disclosure of financial instrument classified as a derivative asset (liability) after deduction of derivative liability (asset) using recurring unobservable inputs that reflect the entity's own assumption about the assumptions market participants would use in pricing.

+ References

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Tabular disclosure of information pertaining to carrying amount and estimated fair value of short-term and long-term debt instruments or arrangements, including but not limited to, identification of terms, features, and collateral requirements.

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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
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-Section 50
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