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Fair Value (Tables) | 6 Months Ended
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Jun. 30, 2023
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 United States of America (U.S.) Treasury, government-sponsored enterprises, foreign governments and redeemable preferred stock.
June 30, 2023 |  |  |  |  |  |  | Total Assets/Liabilities at Fair Value
(In millions) | Level 1 |  | Level 2 |  | Level 3 |
Assets |  |  |  |  |  |  |
Fixed maturity securities: |  |  |  |  |  |  |
Corporate bonds and other | $ | 137 |  |  | $ | 22,286 |  |  | $ | 971 |  |  | $ | 23,394 |
States, municipalities and political subdivisions | — |  |  | 7,767 |  |  | 43 |  |  | 7,810 |
Asset-backed | — |  |  | 6,641 |  |  | 883 |  |  | 7,524 |
Total fixed maturity securities | 137 |  |  | 36,694 |  |  | 1,897 |  |  | 38,728 |
Equity securities: |  |  |  |  |  |  |
Common stock | 179 |  |  | — |  |  | 26 |  |  | 205 |
Non-redeemable preferred stock | 56 |  |  | 422 |  |  | — |  |  | 478 |
Total equity securities | 235 |  |  | 422 |  |  | 26 |  |  | 683 |
Short term and other | 1,711 |  |  | 42 |  |  | — |  |  | 1,753 |
Total assets | $ | 2,083 |  |  | $ | 37,158 |  |  | $ | 1,923 |  |  | $ | 41,164 |
Liabilities |  |  |  |  |  |  |
Other liabilities | $ | — |  |  | $ | 1 |  |  | $ | — |  |  | $ | 1 |
Total liabilities | $ | — |  |  | $ | 1 |  |  | $ | — |  |  | $ | 1 |
December 31, 2022 |  |  |  |  |  |  | Total Assets/Liabilities at Fair Value
(In millions) | Level 1 |  | Level 2 |  | Level 3 |
Assets |  |  |  |  |  |  |
Fixed maturity securities: |  |  |  |  |  |  |
Corporate bonds and other | $ | 120 |  |  | $ | 21,187 |  |  | $ | 810 |  |  | $ | 22,117 |
States, municipalities and political subdivisions | — |  |  | 8,274 |  |  | 43 |  |  | 8,317 |
Asset-backed | — |  |  | 6,405 |  |  | 788 |  |  | 7,193 |
Total fixed maturity securities | 120 |  |  | 35,866 |  |  | 1,641 |  |  | 37,627 |
Equity securities: |  |  |  |  |  |  |
Common stock | 150 |  |  | — |  |  | 35 |  |  | 185 |
Non-redeemable preferred stock | 54 |  |  | 435 |  |  | — |  |  | 489 |
Total equity securities | 204 |  |  | 435 |  |  | 35 |  |  | 674 |
Short term and other | 1,608 |  |  | 71 |  |  | — |  |  | 1,679 |
Total assets | $ | 1,932 |  |  | $ | 36,372 |  |  | $ | 1,676 |  |  | $ | 39,980 |
Liabilities |  |  |  |  |  |  |
Other liabilities | $ | — |  |  | $ | 1 |  |  | $ | — |  |  | $ | 1 |
Total liabilities | $ | — |  |  | $ | 1 |  |  | $ | — |  |  | $ | 1 |
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 April 1, 2023 | $ | 912 |  |  | $ | 44 |  |  | $ | 859 |  |  | $ | 29 |  |  |  |  | $ | 1,844 |
Total realized and unrealized investment gains (losses): |  |  |  |  |  |  |  |  |  |  |
Reported in Net investment gains (losses) | — |  |  | — |  |  | (1) |  |  | — |  |  |  |  | (1) |
Reported in Net investment income | — |  |  | — |  |  | 5 |  |  | (1) |  |  |  |  | 4 |
Reported in Other comprehensive income (loss) | (15) |  |  | (1) |  |  | (7) |  |  | — |  |  |  |  | (23) |
Total realized and unrealized investment gains (losses) | (15) |  |  | (1) |  |  | (3) |  |  | (1) |  |  |  |  | (20) |
Purchases | 68 |  |  | — |  |  | 87 |  |  | — |  |  |  |  | 155 |
Sales | — |  |  | — |  |  | — |  |  | (2) |  |  |  |  | (2) |
Settlements | (5) |  |  | — |  |  | (17) |  |  | — |  |  |  |  | (22) |
Transfers into Level 3 | 11 |  |  | — |  |  | — |  |  | — |  |  |  |  | 11 |
Transfers out of Level 3 | — |  |  | — |  |  | (43) |  |  | — |  |  |  |  | (43) |
Balance as of June 30, 2023 | $ | 971 |  |  | $ | 43 |  |  | $ | 883 |  |  | $ | 26 |  |  |  |  | $ | 1,923 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2023 recognized in Net income (loss) in the period | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (1) |  |  |  |  | $ | (1) |
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2023 recognized in Other comprehensive income (loss) in the period | (15) |  |  | (1) |  |  | (7) |  |  | — |  |  |  |  | (23) |
Level 3 (In millions) | Corporate bonds and other |  | States, municipalities and political subdivisions |  | Asset-backed |  | Equity securities |  |  |  | Total
Balance as of April 1, 2022 | $ | 915 |  |  | $ | 51 |  |  | $ | 604 |  |  | $ | 44 |  |  |  |  | $ | 1,614 |
Total realized and unrealized investment gains (losses): |  |  |  |  |  |  |  |  |  |  |
Reported in Net investment gains (losses) | (1) |  |  | — |  |  | 3 |  |  | (2) |  |  |  |  | — |
Reported in Net investment income | — |  |  | — |  |  | 5 |  |  | (1) |  |  |  |  | 4 |
Reported in Other comprehensive income (loss) | (82) |  |  | (5) |  |  | (52) |  |  | — |  |  |  |  | (139) |
Total realized and unrealized investment gains (losses) | (83) |  |  | (5) |  |  | (44) |  |  | (3) |  |  |  |  | (135) |
Purchases | 51 |  |  | — |  |  | 92 |  |  | — |  |  |  |  | 143 |
Sales | — |  |  | — |  |  | (2) |  |  | (3) |  |  |  |  | (5) |
Settlements | (37) |  |  | — |  |  | (23) |  |  | 9 |  |  |  |  | (51) |
Transfers into Level 3 | — |  |  | — |  |  | 14 |  |  | — |  |  |  |  | 14 |
Transfers out of Level 3 | — |  |  | — |  |  | — |  |  | — |  |  |  |  | — |
Balance as of June 30, 2022 | $ | 846 |  |  | $ | 46 |  |  | $ | 641 |  |  | $ | 47 |  |  |  |  | $ | 1,580 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2022 recognized in Net income (loss) in the period | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (3) |  |  |  |  | $ | (3) |
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2022 recognized in Other comprehensive income (loss) in the period | (81) |  |  | (5) |  |  | (52) |  |  | — |  |  |  |  | (138) |
Level 3 (In millions) | Corporate bonds and other |  | States, municipalities and political subdivisions |  | Asset-backed |  | Equity securities |  |  |  | Total
Balance as of January 1, 2023 | $ | 810 |  |  | $ | 43 |  |  | $ | 788 |  |  | $ | 35 |  |  |  |  | $ | 1,676 |
Total realized and unrealized investment gains (losses): |  |  |  |  |  |  |  |  |  |  |
Reported in Net investment gains (losses) | — |  |  | — |  |  | (1) |  |  | — |  |  |  |  | (1) |
Reported in Net investment income | — |  |  | — |  |  | 10 |  |  | (7) |  |  |  |  | 3 |
Reported in Other comprehensive income (loss) | 9 |  |  | — |  |  | — |  |  | — |  |  |  |  | 9 |
Total realized and unrealized investment gains (losses) | 9 |  |  | — |  |  | 9 |  |  | (7) |  |  |  |  | 11 |
Purchases | 149 |  |  | — |  |  | 142 |  |  | — |  |  |  |  | 291 |
Sales | — |  |  | — |  |  | — |  |  | (2) |  |  |  |  | (2) |
Settlements | (8) |  |  | — |  |  | (26) |  |  | — |  |  |  |  | (34) |
Transfers into Level 3 | 11 |  |  | — |  |  | 23 |  |  | — |  |  |  |  | 34 |
Transfers out of Level 3 | — |  |  | — |  |  | (53) |  |  | — |  |  |  |  | (53) |
Balance as of June 30, 2023 | $ | 971 |  |  | $ | 43 |  |  | $ | 883 |  |  | $ | 26 |  |  |  |  | $ | 1,923 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2023 recognized in Net income (loss) in the period | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (7) |  |  |  |  | $ | (7) |
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2023 recognized in Other comprehensive income (loss) in the period | 9 |  |  | — |  |  | (1) |  |  | — |  |  |  |  | 8 |
Level 3 (In millions) | Corporate bonds and other |  | States, municipalities and political subdivisions |  | Asset-backed |  | Equity securities |  |  |  | Total
Balance as of January 1, 2022 | $ | 937 |  |  | $ | 56 |  |  | $ | 556 |  |  | $ | 29 |  |  |  |  | $ | 1,578 |
Total realized and unrealized investment gains (losses): |  |  |  |  |  |  |  |  |  |  |
Reported in Net investment gains (losses) | (2) |  |  | — |  |  | 5 |  |  | (3) |  |  |  |  | — |
Reported in Net investment income | — |  |  | — |  |  | 6 |  |  | 3 |  |  |  |  | 9 |
Reported in Other comprehensive income (loss) | (153) |  |  | (10) |  |  | (84) |  |  | — |  |  |  |  | (247) |
Total realized and unrealized investment gains (losses) | (155) |  |  | (10) |  |  | (73) |  |  | — |  |  |  |  | (238) |
Purchases | 118 |  |  | — |  |  | 232 |  |  | 12 |  |  |  |  | 362 |
Sales | (5) |  |  | — |  |  | (2) |  |  | (3) |  |  |  |  | (10) |
Settlements | (59) |  |  | — |  |  | (40) |  |  | 9 |  |  |  |  | (90) |
Transfers into Level 3 | 10 |  |  | — |  |  | 19 |  |  | — |  |  |  |  | 29 |
Transfers out of Level 3 | — |  |  | — |  |  | (51) |  |  | — |  |  |  |  | (51) |
Balance as of June 30, 2022 | $ | 846 |  |  | $ | 46 |  |  | $ | 641 |  |  | $ | 47 |  |  |  |  | $ | 1,580 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2022 recognized in Net income (loss) in the period | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (1) |  |  |  |  | $ | (1) |
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2022 recognized in Other comprehensive income (loss) in the period | (153) |  |  | (10) |  |  | (83) |  |  | — |  |  |  |  | (246) |
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.
June 30, 2023 | Estimated Fair Value (In millions) |  | Valuation Technique(s) |  | Unobservable Input(s) |  | Range (Weighted Average)
Fixed maturity securities | $ | 1,415 |  |  | Discounted cash flow |  | Credit spread |  | 1% - 7% (2%)
December 31, 2022 | Estimated Fair Value (In millions) |  | Valuation Technique(s) |  | Unobservable Input(s) |  | Range (Weighted Average)
Fixed maturity securities | $ | 1,177 |  |  | Discounted cash flow |  | Credit spread |  | 1% - 8% (2%)
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.
June 30, 2023 | Carrying Amount |  | Estimated Fair Value
(In millions) |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets |  |  |  |  |  |  |  |  |
Mortgage loans | $ | 1,009 |  |  | $ | — |  |  | $ | — |  |  | $ | 954 |  |  | $ | 954 |
Liabilities |  |  |  |  |  |  |  |  |
Short term debt | $ | 792 |  |  | $ | — |  |  | $ | 785 |  |  | $ | — |  |  | $ | 785 |
Long term debt | 2,384 |  |  | — |  |  | 2,196 |  |  | — |  |  | 2,196 |
December 31, 2022 | Carrying Amount |  | Estimated Fair Value
(In millions) |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets |  |  |  |  |  |  |  |  |
Mortgage loans | $ | 1,040 |  |  | $ | — |  |  | $ | — |  |  | $ | 973 |  |  | $ | 973 |
Liabilities |  |  |  |  |  |  |  |  |
Short term debt | $ | 243 |  |  | $ | — |  |  | $ | 248 |  |  | $ | — |  |  | $ | 248 |
Long term debt | 2,538 |  |  | — |  |  | 2,349 |  |  | — |  |  | 2,349 |

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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 -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
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