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Long Term Subordinated Notes | 12 Months Ended
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Dec. 31, 2022
Long Term Subordinated Notes [Abstract] |
Long Term Subordinated Notes | 7. LONG-TERM SUBORDINATED NOTES The table below displays Holdings’ outstanding fixed to floating rate long-term subordinated notes. Market value is based on quoted market prices, but due to limited trading activity, these subordinated notes are considered Level 2 in the fair value hierarchy. Maturity Date December 31, 2022 December 31, 2021 Original Consolidated Consolidated Principal Balance Sheet Balance Sheet (Dollars in millions) Date Issued Amount Scheduled Final Amount Market Value Amount Market Value Long-term subordinated notes 4/26/2007 $ 400 5/15/2037 5/1/2067 $ 218 $ 187 $ 224 $ 216 During the fixed rate interest period from May 3, 2007 through May 14, 2017 , interest was at the annual rate of 6.6 %, payable semi-annually in arrears on November 15 and May 15 of each year, commencing on November 15, 2007 . During the floating rate interest period from May 15, 2017 through maturity, interest will be based on the 3 month LIBOR plus 238.5 basis points, reset quarterly, payable quarterly in arrears on February 15, May 15, August 15 and November 15 of each year, subject to Holdings’ right to defer interest on one or more occasions for up to ten consecutive years. Deferred interest will accumulate interest at the applicable rate compounded quarterly for periods from and including May 15, 2017. The reset quarterly interest rate for November 15, 2022 to February 14, 2023 is 6.99 %. Holdings may redeem the long-term subordinated notes on or after May 15, 2017, in whole or in part at 100 % of the principal amount plus accrued and unpaid interest; however, redemption on or after the scheduled maturity date and prior to May 1, 2047 is subject to a replacement capital covenant. This covenant is for the benefit of certain senior note holders and it mandates that Holdings receive proceeds from the sale of another subordinated debt issue, of at least similar size, before it may redeem the subordinated notes. The Company’s 4.868 % senior notes due on June 1, 2044 , 3.5 % senior notes due on October 15, 2050 and 3.125 % senior notes due on October 15, 2052 are the Company’s long-term indebtedness that rank senior to the long-term subordinated notes. In 2009, the Company had reduced its outstanding amount of long-term subordinated notes through the initiation of a cash tender offer for any and all of the long-term subordinated notes. In addition, the Company repurchased and retired $ 6 million of the outstanding long-term subordinated notes for the year ended December 31, 2022. The Company realized a gain of $ 1 million on the repurchases made during 2022. Interest expense incurred in connection with these long-term subordinated notes is as follows for the periods indicated: Years Ended December 31, (Dollars in millions) 2022 2021 2020 Interest expense incurred $ 9 $ 6 $ 8

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- Definition The entire disclosure for long-term debt. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI https://asc.fasb.org/topic&trid=2208564 + Details
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