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Fair Value (Tables) | 3 Months Ended
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Mar. 31, 2019
Fair Value Disclosures [Abstract] |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized in the following tables. Corporate bonds and other includes obligations of the U.S. Treasury, government-sponsored enterprises, foreign governments and redeemable preferred stock.
March 31, 2019 |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
(In millions) |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate bonds and other |  | $ | 203 |  |  | $ | 20,697 |  |  | $ | 253 |  |  | $ | 21,153 |
States, municipalities and political subdivisions |  |  |  |  |  |  | 10,578 |  |  |  |  |  |  |  | 10,578 |
Asset-backed |  |  |  |  |  |  | 8,610 |  |  |  | 184 |  |  |  | 8,794 |
Fixed maturities available-for-sale |  |  | 203 |  |  |  | 39,885 |  |  |  | 437 |  |  |  | 40,525 |
Fixed maturities trading |  |  |  |  |  |  | 72 |  |  |  | 5 |  |  |  | 77 |
Total fixed maturities |  | $ | 203 |  |  | $ | 39,957 |  |  | $ | 442 |  |  | $ | 40,602 |
Equity securities |  | $ | 697 |  |  | $ | 608 |  |  | $ | 21 |  |  | $ | 1,326 |
Short term and other |  |  | 3,199 |  |  |  | 1,204 |  |  |  |  |  |  |  | 4,403 |
Receivables |  |  |  |  |  |  | 3 |  |  |  |  |  |  |  | 3 |
Payable to brokers |  |  | (14 | ) |  |  |  |  |  |  |  |  |  |  | (14 | )
December 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate bonds and other |  | $ | 196 |  |  | $ | 19,392 |  |  | $ | 222 |  |  | $ | 19,810 |
States, municipalities and political subdivisions |  |  |  |  |  |  | 10,748 |  |  |  |  |  |  |  | 10,748 |
Asset-backed |  |  |  |  |  |  | 8,787 |  |  |  | 197 |  |  |  | 8,984 |
Fixed maturities available-for-sale |  |  | 196 |  |  |  | 38,927 |  |  |  | 419 |  |  |  | 39,542 |
Fixed maturities trading |  |  |  |  |  |  | 151 |  |  |  | 6 |  |  |  | 157 |
Total fixed maturities |  | $ | 196 |  |  | $ | 39,078 |  |  | $ | 425 |  |  | $ | 39,699 |
Equity securities |  | $ | 704 |  |  | $ | 570 |  |  | $ | 19 |  |  | $ | 1,293 |
Short term and other |  |  | 2,647 |  |  |  | 1,111 |  |  |  |  |  |  |  | 3,758 |
Receivables |  |  |  |  |  |  | 11 |  |  |  |  |  |  |  | 11 |
Payable to brokers |  |  | (23 | ) |  |  |  |  |  |  |  |  |  |  | (23 | )
Reconciliations of Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs | The following tables present reconciliations for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2019 and 2018:
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Unrealized |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Gains |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Unrealized |  |  | (Losses) |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Gains |  |  | Recognized in |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (Losses) |  |  | Other |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Recognized in |  |  | Comprehensive |
|  |  |  |  | Net Realized Investment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Net Income |  |  | Income (Loss) |
|  |  |  |  | Gains (Losses) and Net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (Loss) on Level |  |  | on Level 3 |
|  |  |  |  | Change in Unrealized |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 3 Assets and |  |  | Assets and |
|  |  |  |  | Investment Gains (Losses) |  |  |  |  |  |  |  |  |  |  |  | Transfers |  |  | Transfers |  |  |  |  |  | Liabilities |  |  | Liabilities |
|  | Balance, |  |  | Included in |  |  | Included in |  |  |  |  |  |  |  |  |  |  |  | into |  |  | out of |  |  | Balance, |  |  | Held at |  |  | Held at |
2019 |  | January 1 |  |  | Net Income |  |  | OCI |  |  | Purchases |  |  | Sales |  |  | Settlements |  |  | Level 3 |  |  | Level 3 |  |  | March 31 |  |  | March 31 |  |  | March 31 |
(In millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate bonds and other |  | $ | 222 |  |  |  |  |  |  | $ | 8 |  |  | $ | 56 |  |  |  |  |  |  | $ | (2 | ) |  |  |  |  |  | $ | (31 | ) |  | $ | 253 |  |  |  |  |  |  | $ | 7 |
Asset-backed |  |  | 197 |  |  |  |  |  |  |  | 3 |  |  |  | 20 |  |  |  |  |  |  |  | (4 | ) |  | $ | 5 |  |  |  | (37 | ) |  |  | 184 |  |  |  |  |  |  |  | 3 |
Fixed maturities available-for-sale |  |  | 419 |  |  | $ | - |  |  |  | 11 |  |  |  | 76 |  |  | $ | - |  |  |  | (6 | ) |  |  | 5 |  |  |  | (68 | ) |  |  | 437 |  |  | $ | - |  |  |  | 10 |
Fixed maturities trading |  |  | 6 |  |  |  | (1 | ) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 5 |  |  |  | (1 | ) |  |  |  |
Total fixed maturities |  | $ | 425 |  |  | $ | (1 | ) |  | $ | 11 |  |  | $ | 76 |  |  | $ | - |  |  | $ | (6 | ) |  | $ | 5 |  |  | $ | (68 | ) |  | $ | 442 |  |  | $ | (1 | ) |  | $ | 10 |
Equity securities |  | $ | 19 |  |  | $ | 2 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 21 |  |  | $ | 2 |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Unrealized |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Gains |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (Losses) |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Recognized in |
|  |  |  |  | Net Realized Investment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Net Income |
|  |  |  |  | Gains (Losses) and Net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (Loss) on Level |
|  |  |  |  | Change in Unrealized |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 3 Assets and |
|  |  |  |  | Investment Gains (Losses) |  |  |  |  |  |  |  |  |  |  |  | Transfers |  |  | Transfers |  |  |  |  |  | Liabilities |
|  | Balance, |  |  | Included in |  |  | Included in |  |  |  |  |  |  |  |  |  |  |  | into |  |  | out of |  |  | Balance, |  |  | Held at |
2018 |  | January 1 |  |  | Net Income |  |  | OCI |  |  | Purchases |  |  | Sales |  |  | Settlements |  |  | Level 3 |  |  | Level 3 |  |  | March 31 |  |  | March 31 |
(In millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate bonds and other |  | $ | 98 |  |  | $ | (1 | ) |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | (2 | ) |  | $ | 5 |  |  |  |  |  |  | $ | 100 |  |  |  |  |
States, municipalities and political subdivisions |  |  | 1 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1 |  |  |  |  |
Asset-backed |  |  | 335 |  |  |  | 7 |  |  | $ | (5 | ) |  | $ | 30 |  |  | $ | (72 | ) |  |  | (6 | ) |  |  |  |  |  | $ | (10 | ) |  |  | 279 |  |  |  |  |
Fixed maturities available-for-sale |  |  | 434 |  |  |  | 6 |  |  |  | (5 | ) |  |  | 30 |  |  |  | (72 | ) |  |  | (8 | ) |  |  | 5 |  |  |  | (10 | ) |  |  | 380 |  |  | $ | - |
Fixed maturities trading |  |  | 4 |  |  |  | 3 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 7 |  |  |  | 3 |
Total fixed maturities |  | $ | 438 |  |  | $ | 9 |  |  | $ | (5 | ) |  | $ | 30 |  |  | $ | (72 | ) |  | $ | (8 | ) |  | $ | 5 |  |  | $ | (10 | ) |  | $ | 387 |  |  | $ | 3 |
Equity securities |  | $ | 22 |  |  | $ | (2 | ) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 20 |  |  | $ | (2 | )
Net investment gains and losses are reported in Net income as follows:
Major Category of Assets and Liabilities |  | Consolidated Condensed Statements of Income Line Items
Fixed maturity securities available-for-sale |  | Investment gains (losses)
Fixed maturity securities trading |  | Net investment income
Equity securities |  | Investment gains (losses) and Net investment income
Other invested assets |  | Investment gains (losses) and Net investment income
Derivative financial instruments held in a trading portfolio |  | Net investment income
Derivative financial instruments, other |  | Investment gains (losses) and Operating revenues and other
Life settlement contracts |  | Operating revenues and other
Quantitative Information about Significant Unobservable Inputs Utilized by Company in Fair Value Measurements of Level 3 Assets | The following tables present quantitative information about the significant unobservable inputs utilized by the Company in the fair value measurement of Level 3 assets. Valuations for assets and liabilities not presented in the tables below are primarily based on broker/dealer quotes for which there is a lack of transparency as to inputs used to develop the valuations. The quantitative detail of unobservable inputs from these broker quotes is neither provided nor reasonably available to the Company. The weighted average rate is calculated based on fair value.
|  |  |  |  |  |  |  |  | Range |
|  | Estimated |  |  | Valuation |  | Unobservable |  | (Weighted |
March 31, 2019 |  | Fair Value |  |  | Techniques |  | Inputs |  | Average) |
|  | (In millions) |  |  |  |  |  |  |  |
|  |  |  |  |  | Discounted |  |  |  |  |  |
Fixed maturity securities |  | $ | 293 |  |  | cash flow |  | Credit spread |  |  | 1% – 5% (3%) |
December 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  | Discounted |  |  |  |  |  |
Fixed maturity securities |  | $ | 228 |  |  | cash flow |  | Credit spread |  |  | 1% – 12% (3%) |
Carrying Amount, Estimated Fair Value and Level of Fair Value Hierarchy of Company's Financial Assets and Liabilities | The carrying amounts reported on the Consolidated Condensed Balance Sheets for cash and short term investments not carried at fair value and certain other assets and liabilities approximate fair value due to the short term nature of these items.
|  | Carrying |  |  | Estimated Fair Value |
March 31, 2019 |  | Amount |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
(In millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other invested assets, primarily mortgage loans |  | $ | 863 |  |  |  |  |  |  |  |  |  |  | $ | 868 |  |  | $ | 868 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Short term debt |  |  | 131 |  |  |  |  |  |  | $ | 54 |  |  |  | 75 |  |  |  | 129 |
Long term debt |  |  | 11,216 |  |  |  |  |  |  |  | 10,469 |  |  |  | 531 |  |  |  | 11,000 |
December 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other invested assets, primarily mortgage loans |  | $ | 839 |  |  |  |  |  |  |  |  |  |  | $ | 827 |  |  | $ | 827 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Short term debt |  |  | 15 |  |  |  |  |  |  | $ | 14 |  |  |  |  |  |  |  | 14 |
Long term debt |  |  | 11,345 |  |  |  |  |  |  |  | 10,111 |  |  |  | 653 |  |  |  | 10,764 |

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- 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19207-110258 + Details
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- 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 http://asc.fasb.org/extlink&oid=99377789&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 http://asc.fasb.org/extlink&oid=99377789&loc=d3e19207-110258 + Details
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- 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 http://asc.fasb.org/extlink&oid=109250915&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 http://asc.fasb.org/extlink&oid=99377789&loc=d3e19207-110258 + Details
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- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19190-110258 + Details
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