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Fair Value (Tables) | 12 Months Ended
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Dec. 31, 2017
Fair Value Disclosures [Abstract] |
Assets and liabilities measured at fair value on a recurring basis | Assets and liabilities measured at fair value on a recurring basis are presented in the following tables. Corporate bonds and other includes obligations of the U.S. Treasury, government-sponsored enterprises and foreign governments and redeemable preferred stock.
December 31, 2017 |  |  |  |  |  |  | Total Assets/Liabilities at Fair Value
(In millions) | Level 1 |  | Level 2 |  | Level 3 |
Assets |  |  |  |  |  |  |
Fixed maturity securities: |  |  |  |  |  |  |
Corporate bonds and other | $ | 128 |  |  | $ | 19,148 |  |  | $ | 98 |  |  | $ | 19,374 |
States, municipalities and political subdivisions | — |  |  | 14,026 |  |  | 1 |  |  | 14,027 |
Asset-backed | — |  |  | 7,751 |  |  | 335 |  |  | 8,086 |
Total fixed maturity securities | 128 |  |  | 40,925 |  |  | 434 |  |  | 41,487 |
Equity securities | 91 |  |  | 584 |  |  | 20 |  |  | 695 |
Short term and other | 396 |  |  | 958 |  |  | — |  |  | 1,354 |
Total assets | $ | 615 |  |  | $ | 42,467 |  |  | $ | 454 |  |  | $ | 43,536 |
Liabilities |  |  |  |  |  |  |  |  |
Other liabilities | $ | — |  |  | $ | 3 |  |  | $ | — |  |  | $ | 3 |
Total liabilities | $ | — |  |  | $ | 3 |  |  | $ | — |  |  | $ | 3 |
December 31, 2016 |  |  |  |  |  |  | Total Assets/Liabilities at Fair Value
(In millions) | Level 1 |  | Level 2 |  | Level 3 |
Assets |  |  |  |  |  |  |
Fixed maturity securities: |  |  |  |  |  |  |
Corporate bonds and other | $ | 112 |  |  | $ | 19,285 |  |  | $ | 130 |  |  | $ | 19,527 |
States, municipalities and political subdivisions | — |  |  | 13,239 |  |  | 1 |  |  | 13,240 |
Asset-backed | — |  |  | 7,939 |  |  | 199 |  |  | 8,138 |
Total fixed maturity securities | 112 |  |  | 40,463 |  |  | 330 |  |  | 40,905 |
Equity securities | 91 |  |  | — |  |  | 19 |  |  | 110 |
Short term and other | 475 |  |  | 858 |  |  | — |  |  | 1,333 |
Life settlement contracts, included in Other assets | — |  |  | — |  |  | 58 |  |  | 58 |
Total assets | $ | 678 |  |  | $ | 41,321 |  |  | $ | 407 |  |  | $ | 42,406 |
Liabilities |  |  |  |  |  |  |  |  |
Other liabilities | $ | — |  |  | $ | (3 | ) |  | $ | — |  |  | $ | (3 | )
Total liabilities | $ | — |  |  | $ | (3 | ) |  | $ | — |  |  | $ | (3 | )
Table of reconciliation for assets and liablities measured at fair value on a recurring basis using significant unobservable inputs | The tables below present a reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3).
Level 3 (In millions) | Corporate bonds and other |  | States, municipalities and political subdivisions |  | Asset-backed |  | Equity securities |  | Derivative financial instruments |  | Life settlement contracts |  | Total
Balance as of January 1, 2017 | $ | 130 |  |  | $ | 1 |  |  | $ | 199 |  |  | $ | 19 |  |  | $ | — |  |  | $ | 58 |  |  | $ | 407 |
Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in Net income (loss)* | — |  |  | — |  |  | 2 |  |  | — |  |  | 1 |  |  | 6 |  |  | 9 |
Net change in unrealized appreciation (depreciation) included in Other comprehensive income (loss) | 3 |  |  | — |  |  | 3 |  |  | 3 |  |  | — |  |  | — |  |  | 9 |
Purchases | 18 |  |  | — |  |  | 107 |  |  | 1 |  |  | — |  |  | — |  |  | 126 |
Sales | (5 | ) |  | — |  |  | — |  |  | (3 | ) |  | (1 | ) |  | (59 | ) |  | (68 | )
Settlements | (54 | ) |  | — |  |  | (43 | ) |  | — |  |  | — |  |  | (5 | ) |  | (102 | )
Transfers into Level 3 | 16 |  |  | — |  |  | 153 |  |  | — |  |  | — |  |  | — |  |  | 169 |
Transfers out of Level 3 | (10 | ) |  | — |  |  | (86 | ) |  | — |  |  | — |  |  | — |  |  | (96 | )
Balance as of December 31, 2017 | $ | 98 |  |  | $ | 1 |  |  | $ | 335 |  |  | $ | 20 |  |  | $ | — |  |  | $ | — |  |  | $ | 454 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2017 recognized in Net income (loss)* | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Level 3 (In millions) | Corporate bonds and other |  | States, municipalities and political subdivisions |  | Asset-backed |  | Equity securities |  | Life settlement contracts |  | Total
Balance as of January 1, 2016 | $ | 168 |  |  | $ | 2 |  |  | $ | 209 |  |  | $ | 20 |  |  | $ | 74 |  |  | $ | 473 |
Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in Net income (loss)* | 1 |  |  | — |  |  | — |  |  | (1 | ) |  | 5 |  |  | 5 |
Net change in unrealized appreciation (depreciation) included in Other comprehensive income (loss) | 1 |  |  | — |  |  | (5 | ) |  | — |  |  | — |  |  | (4 | )
Purchases | 163 |  |  | — |  |  | 133 |  |  | — |  |  | — |  |  | 296 |
Sales | (36 | ) |  | — |  |  | (25 | ) |  | — |  |  | — |  |  | (61 | )
Settlements | (103 | ) |  | (1 | ) |  | (32 | ) |  | — |  |  | (21 | ) |  | (157 | )
Transfers into Level 3 | — |  |  | — |  |  | 61 |  |  | — |  |  | — |  |  | 61 |
Transfers out of Level 3 | (64 | ) |  | — |  |  | (142 | ) |  | — |  |  | — |  |  | (206 | )
Balance as of December 31, 2016 | $ | 130 |  |  | $ | 1 |  |  | $ | 199 |  |  | $ | 19 |  |  | $ | 58 |  |  | $ | 407 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2016 recognized in Net income (loss)* | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (2 | ) |  | $ | (3 | ) |  | $ | (5 | )
Fair Value, Option, Qualitative Disclosures Related to Election | *Net realized and unrealized gains and losses from Level 3 securities and derivatives are reported in Net income (loss) as follows:
Major Category of Assets and Liabilities |  | Consolidated Statements of Operations Line Items
Fixed maturity securities available-for-sale (1) |  | Net realized investment gains (losses)
Fixed maturity securities trading |  | Net investment income
Equity securities (1) |  | Net realized investment gains (losses)
Other invested assets - Derivative financial instruments held in a trading portfolio |  | Net investment income
Other invested assets - Derivative financial instruments not held in a trading portfolio |  | Net realized investment gains (losses)
Life settlement contracts |  | Other revenues
Other liabilities - Derivative financial instruments |  | Net realized investment gains (losses)
(1) Unrealized gains and losses are reported within AOCI.
Quantitative information about significant unobservable inputs in the fair value measurement of level 3 assets | The following tables present quantitative information about the significant unobservable inputs utilized by the Company in the fair value measurements 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 these unobservable inputs is neither provided nor reasonably available to the Company. The valuation of life settlement contracts was based on the terms of the sale of the contracts to a third party; therefore, the contracts are not included in the table below.
December 31, 2017 | Estimated Fair Value (In millions) |  | Valuation Technique(s) |  | Unobservable Input(s) |  | Range (Weighted Average)
Fixed maturity securities | $ | 136 |  |  | Discounted cash flow |  | Credit spread |  | 1% - 12% (3%)
December 31, 2016 | Estimated Fair Value (In millions) |  | Valuation Technique(s) |  | Unobservable Input(s) |  | Range (Weighted Average)
Fixed maturity securities | $ | 106 |  |  | Discounted cash flow |  | Credit spread |  | 2% - 40% (4%)
Carrying amount and estimated fair value of financial instrument assets and liabilities not measured at fair value | The carrying amount and estimated fair value of the Company's financial assets and liabilities which are not measured at fair value on the Consolidated Balance Sheets are presented in the following tables.
December 31, 2017 | Carrying Amount |  | Estimated Fair Value
(In millions) |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets |  |  |  |  |  |  |  |  |
Mortgage loans | $ | 839 |  |  | $ | — |  |  | $ | — |  |  | $ | 844 |  |  | $ | 844 |
Note receivable | 46 |  |  | — |  |  | — |  |  | 46 |  |  | 46 |
Liabilities |  |  |  |  |  |  |  |  |
Short term debt | $ | 150 |  |  | $ | — |  |  | $ | 150 |  |  | $ | — |  |  | $ | 150 |
Long term debt | 2,708 |  |  | — |  |  | 2,896 |  |  | — |  |  | 2,896 |
December 31, 2016 | Carrying Amount |  | Estimated Fair Value
(In millions) |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets |  |  |  |  |  |  |  |  |
Mortgage loans | $ | 591 |  |  | $ | — |  |  | $ | — |  |  | $ | 594 |  |  | $ | 594 |
Liabilities |  |  |  |  |  |  |  |  |
Long term debt | $ | 2,710 |  |  | $ | — |  |  | $ | 2,952 |  |  | $ | — |  |  | $ | 2,952 |

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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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19279-110258 + 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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=77997519&loc=d3e13476-108611 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=77997519&loc=d3e13467-108611 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 45 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=75026489&loc=d3e13220-108610 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=75031198&loc=d3e14172-108612 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=77997519&loc=d3e13433-108611 + Details
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- Definition Tabular disclosure of quantitative information about the inputs used in the fair value measurement of assets. This disclosure may include, but is not limited to, the fair value of the asset, valuation technique used to measure fair value, the inputs used to measure fair value, the ranges of the inputs, and the weighted averages of the inputs. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of the application of the fair value option for measurement and reporting of eligible financial assets and liabilities (as defined), as well as certain other eligible items (as defined) included in the statement of financial position, whether such option is elected for a single eligible item or a group of similar eligible items and is in addition to other disclosures concerning fair value which the company may be required to provide. Such disclosure might be expected to include: (1) for items included in the statement of financial position: (a) the reasons for electing a fair value option for each eligible item or group of similar eligible items and (b) if the fair value option is elected for some but not all eligible items within a group of similar eligible items: (i) a description of those similar items and the reasons for partial election and (ii) information of how the group of similar items relates to individual balance sheet line items; (c) for each line item in the statement of financial position that includes an item or items for which the fair value option has been elected, information of how each line item in the statement of financial position relates to major categories of assets and liabilities presented in accordance with other fair value disclosures; (2) for items included in the income statement: (a) a description of how interest and dividends are measured and where they are reported in the income statement; (b) how the gains or losses attributable to changes in instrument-specific credit risk were determined; (c) for liabilities with fair values that have been significantly affected during the reporting period by changes in the instrument-specific credit risk: (i) qualitative information about the reasons for the changes and (ii) how the gains and losses attributable to changes in instrument-specific credit risk were determined; and (3) certain other disclosures as required or determined to be provided. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=75031198&loc=d3e14210-108612 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=75031198&loc=d3e14217-108612 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 28 -Subparagraph (a),(b),(c)(1) -URI http://asc.fasb.org/extlink&oid=75031198&loc=d3e14064-108612 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (b),(c)(2),(d)(2)-(3) -URI http://asc.fasb.org/extlink&oid=75031198&loc=d3e14172-108612 + 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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19190-110258 + Details
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