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Fair Value (Tables) | 9 Months Ended
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Sep. 30, 2021
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, foreign governments and redeemable preferred stock.
September 30, 2021 |  |  |  |  |  |  | Total Assets/Liabilities at Fair Value
(In millions) | Level 1 |  | Level 2 |  | Level 3 |
Assets |  |  |  |  |  |  |
Fixed maturity securities: |  |  |  |  |  |  |
Corporate bonds and other | $ | 146 |  |  | $ | 24,195 |  |  | $ | 877 |  |  | $ | 25,218 |
States, municipalities and political subdivisions | — |  |  | 11,922 |  |  | 57 |  |  | 11,979 |
Asset-backed | — |  |  | 7,394 |  |  | 478 |  |  | 7,872 |
Total fixed maturity securities | 146 |  |  | 43,511 |  |  | 1,412 |  |  | 45,069 |
Equity securities: |  |  |  |  |  |  |
Common stock | 209 |  |  | — |  |  | 19 |  |  | 228 |
Non-redeemable preferred stock | 67 |  |  | 745 |  |  | 5 |  |  | 817 |
Total equity securities | 276 |  |  | 745 |  |  | 24 |  |  | 1,045 |
Short term and other | 992 |  |  | — |  |  | — |  |  | 992 |
Total assets | $ | 1,414 |  |  | $ | 44,256 |  |  | $ | 1,436 |  |  | $ | 47,106 |
Liabilities |  |  |  |  |  |  |
Other liabilities | $ | — |  |  | $ | 12 |  |  | $ | — |  |  | $ | 12 |
Total liabilities | $ | — |  |  | $ | 12 |  |  | $ | — |  |  | $ | 12 |
December 31, 2020 |  |  |  |  |  |  | Total Assets/Liabilities at Fair Value
(In millions) | Level 1 |  | Level 2 |  | Level 3 |
Assets |  |  |  |  |  |  |
Fixed maturity securities: |  |  |  |  |  |  |
Corporate bonds and other | $ | 355 |  |  | $ | 24,109 |  |  | $ | 770 |  |  | $ | 25,234 |
States, municipalities and political subdivisions | — |  |  | 11,546 |  |  | 46 |  |  | 11,592 |
Asset-backed | — |  |  | 7,497 |  |  | 308 |  |  | 7,805 |
Total fixed maturity securities | 355 |  |  | 43,152 |  |  | 1,124 |  |  | 44,631 |
Equity securities: |  |  |  |  |  |  |
Common stock | 175 |  |  | — |  |  | 20 |  |  | 195 |
Non-redeemable preferred stock | 68 |  |  | 722 |  |  | 7 |  |  | 797 |
Total equity securities | 243 |  |  | 722 |  |  | 27 |  |  | 992 |
Short term and other | 1,761 |  |  | 28 |  |  | — |  |  | 1,789 |
Total assets | $ | 2,359 |  |  | $ | 43,902 |  |  | $ | 1,151 |  |  | $ | 47,412 |
Liabilities |  |  |  |  |  |  |
Other liabilities | $ | — |  |  | $ | 19 |  |  | $ | — |  |  | $ | 19 |
Total liabilities | $ | — |  |  | $ | 19 |  |  | $ | — |  |  | $ | 19 |
Table of reconciliation for assets and liabilities 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 |  | Total
Balance as of July 1, 2021 | $ | 883 |  |  | $ | 57 |  |  | $ | 410 |  |  | $ | 25 |  |  | $ | 1,375 |
Total realized and unrealized investment gains (losses): |  |  |  |  |  |  |  |  |
Reported in Net investment gains (losses) | 1 |  |  | — |  |  | — |  |  | (3) |  |  | (2) |
Reported in Net investment income | — |  |  | — |  |  | 1 |  |  | 1 |  |  | 2 |
Reported in Other comprehensive income (loss) | 1 |  |  | — |  |  | 1 |  |  | — |  |  | 2 |
Total realized and unrealized investment gains (losses) | 2 |  |  | — |  |  | 2 |  |  | (2) |  |  | 2 |
Purchases | 55 |  |  | — |  |  | 83 |  |  | 1 |  |  | 139 |
Sales | — |  |  | — |  |  | (9) |  |  | (11) |  |  | (20) |
Settlements | (11) |  |  | — |  |  | (11) |  |  | — |  |  | (22) |
Transfers into Level 3 | — |  |  | — |  |  | 41 |  |  | 11 |  |  | 52 |
Transfers out of Level 3 | (52) |  |  | — |  |  | (38) |  |  | — |  |  | (90) |
Balance as of September 30, 2021 | $ | 877 |  |  | $ | 57 |  |  | $ | 478 |  |  | $ | 24 |  |  | $ | 1,436 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of September 30, 2021 recognized in Net income (loss) in the period | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (3) |  |  | $ | (3) |
Unrealized gains (losses) on Level 3 assets and liabilities held as of September 30, 2021 recognized in Other comprehensive income (loss) in the period | 2 |  |  | — |  |  | — |  |  | — |  |  | 2 |
Level 3 (In millions) | Corporate bonds and other |  | States, municipalities and political subdivisions |  | Asset-backed |  | Equity securities |  | Total
Balance as of July 1, 2020 | $ | 555 |  |  | $ | — |  |  | $ | 222 |  |  | $ | 11 |  |  | $ | 788 |
Total realized and unrealized investment gains (losses): |  |  |  |  |  |  |  |  |
Reported in Net investment gains (losses) | — |  |  | — |  |  | — |  |  | — |  |  | — |
Reported in Net investment income | — |  |  | — |  |  | — |  |  | — |  |  | — |
Reported in Other comprehensive income (loss) | 5 |  |  | — |  |  | 9 |  |  | — |  |  | 14 |
Total realized and unrealized investment gains (losses) | 5 |  |  | — |  |  | 9 |  |  | — |  |  | 14 |
Purchases | 129 |  |  | 45 |  |  | 20 |  |  | 12 |  |  | 206 |
Sales | — |  |  | — |  |  | — |  |  | — |  |  | — |
Settlements | (3) |  |  | — |  |  | (14) |  |  | — |  |  | (17) |
Transfers into Level 3 | 8 |  |  | — |  |  | — |  |  | — |  |  | 8 |
Transfers out of Level 3 | — |  |  | — |  |  | (2) |  |  | — |  |  | (2) |
Balance as of September 30, 2020 | $ | 694 |  |  | $ | 45 |  |  | $ | 235 |  |  | $ | 23 |  |  | $ | 997 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of September 30, 2020 recognized in Net income (loss) in the period | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Unrealized gains (losses) on Level 3 assets and liabilities held as of September 30, 2020 recognized in Other comprehensive income (loss) in the period | 5 |  |  | — |  |  | 8 |  |  | — |  |  | 13 |
Level 3 (In millions) | Corporate bonds and other |  | States, municipalities and political subdivisions |  | Asset-backed |  | Equity securities |  | Total
Balance as of January 1, 2021 | $ | 770 |  |  | $ | 46 |  |  | $ | 308 |  |  | $ | 27 |  |  | $ | 1,151 |
Total realized and unrealized investment gains (losses): |  |  |  |  |  |  |  |  |
Reported in Net investment gains (losses) | (9) |  |  | — |  |  | — |  |  | (2) |  |  | (11) |
Reported in Net investment income | — |  |  | — |  |  | 4 |  |  | 2 |  |  | 6 |
Reported in Other comprehensive income (loss) | (23) |  |  | — |  |  | (4) |  |  | — |  |  | (27) |
Total realized and unrealized investment gains (losses) | (32) |  |  | — |  |  | — |  |  | — |  |  | (32) |
Purchases | 219 |  |  | 12 |  |  | 197 |  |  | 1 |  |  | 429 |
Sales | (3) |  |  | — |  |  | (9) |  |  | (15) |  |  | (27) |
Settlements | (35) |  |  | (1) |  |  | (38) |  |  | — |  |  | (74) |
Transfers into Level 3 | 10 |  |  | — |  |  | 71 |  |  | 11 |  |  | 92 |
Transfers out of Level 3 | (52) |  |  | — |  |  | (51) |  |  | — |  |  | (103) |
Balance as of September 30, 2021 | $ | 877 |  |  | $ | 57 |  |  | $ | 478 |  |  | $ | 24 |  |  | $ | 1,436 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of September 30, 2021 recognized in Net income (loss) in the period | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (1) |  |  | $ | (1) |
Unrealized gains (losses) on Level 3 assets and liabilities held as of September 30, 2021 recognized in Other comprehensive income (loss) in the period | (22) |  |  | — |  |  | (5) |  |  | — |  |  | (27) |
Level 3 (In millions) | Corporate bonds and other |  | States, municipalities and political subdivisions |  | Asset-backed |  | Equity securities |  | Total
Balance as of January 1, 2020 | $ | 468 |  |  | $ | — |  |  | $ | 165 |  |  | $ | 18 |  |  | $ | 651 |
Total realized and unrealized investment gains (losses): |  |  |  |  |  |  |  |  |
Reported in Net investment gains (losses) | — |  |  | — |  |  | — |  |  | (4) |  |  | (4) |
Reported in Net investment income | — |  |  | — |  |  | — |  |  | (3) |  |  | (3) |
Reported in Other comprehensive income (loss) | 27 |  |  | — |  |  | 18 |  |  | — |  |  | 45 |
Total realized and unrealized investment gains (losses) | 27 |  |  | — |  |  | 18 |  |  | (7) |  |  | 38 |
Purchases | 200 |  |  | 45 |  |  | 100 |  |  | 12 |  |  | 357 |
Sales | — |  |  | — |  |  | (9) |  |  | — |  |  | (9) |
Settlements | (9) |  |  | — |  |  | (22) |  |  | — |  |  | (31) |
Transfers into Level 3 | 8 |  |  | — |  |  | — |  |  | — |  |  | 8 |
Transfers out of Level 3 | — |  |  | — |  |  | (17) |  |  | — |  |  | (17) |
Balance as of September 30, 2020 | $ | 694 |  |  | $ | 45 |  |  | $ | 235 |  |  | $ | 23 |  |  | $ | 997 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of September 30, 2020 recognized in Net income (loss) in the period | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (7) |  |  | $ | (7) |
Unrealized gains (losses) on Level 3 assets and liabilities held as of September 30, 2020 recognized in Other comprehensive income (loss) in the period | 29 |  |  | — |  |  | 19 |  |  | — |  |  | 48 |
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 weighted average rate is calculated based on fair value.
September 30, 2021 | Estimated Fair Value (In millions) |  | Valuation Technique(s) |  | Unobservable Input(s) |  | Range (Weighted Average)
Fixed maturity securities | $ | 1,154 |  |  | Discounted cash flow |  | Credit spread |  | 1% - 7% (2%)
December 31, 2020 | Estimated Fair Value (In millions) |  | Valuation Technique(s) |  | Unobservable Input(s) |  | Range (Weighted Average)
Fixed maturity securities | $ | 966 |  |  | Discounted cash flow |  | Credit spread |  | 1% - 8% (3%)
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 Condensed Consolidated Balance Sheets are presented in the following tables.
September 30, 2021 | Carrying Amount |  | Estimated Fair Value
(In millions) |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets |  |  |  |  |  |  |  |  |
Mortgage loans | $ | 1,031 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,106 |  |  | $ | 1,106 |
Liabilities |  |  |  |  |  |  |  |  |
Long term debt | $ | 2,778 |  |  | $ | — |  |  | $ | 3,027 |  |  | $ | — |  |  | $ | 3,027 |
December 31, 2020 | Carrying Amount |  | Estimated Fair Value
(In millions) |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets |  |  |  |  |  |  |  |  |
Mortgage loans | $ | 1,068 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,151 |  |  | $ | 1,151 |
Liabilities |  |  |  |  |  |  |  |  |
Long term debt | $ | 2,776 |  |  | $ | — |  |  | $ | 3,148 |  |  | $ | — |  |  | $ | 3,148 |

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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=123874694&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=123874694&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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123874694&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 http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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