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Fair Value (Tables)

6 Months Ended

Jun. 30, 2024

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, 2024																					Total Assets/Liabilities at Fair Value
(In millions)			Level 1						Level 2						Level 3
Assets
Fixed maturity securities:
Corporate bonds and other			$	194					$	23,946					$	1,129					$	25,269
States, municipalities and political subdivisions			—						6,986						43						7,029
Asset-backed			—						7,218						887						8,105
Total fixed maturity securities			194						38,150						2,059						40,403
Equity securities:
Common stock			168						—						12						180
Non-redeemable preferred stock			45						442						2						489
Total equity securities			213						442						14						669
Short-term and other			1,546						25						—						1,571
Total assets			$	1,953					$	38,617					$	2,073					$	42,643
Liabilities
Other liabilities			$	—					$	—					$	—					$	—
Total liabilities			$	—					$	—					$	—					$	—

December 31, 2023																					Total Assets/Liabilities at Fair Value
(In millions)			Level 1						Level 2						Level 3
Assets
Fixed maturity securities:
Corporate bonds and other			$	161					$	23,926					$	1,045					$	25,132
States, municipalities and political subdivisions			—						7,348						44						7,392
Asset-backed			—						7,000						901						7,901
Total fixed maturity securities			161						38,274						1,990						40,425
Equity securities:
Common stock			167						—						24						191
Non-redeemable preferred stock			52						440						—						492
Total equity securities			219						440						24						683
Short-term and other			1,976						32						—						2,008
Total assets			$	2,356					$	38,746					$	2,014					$	43,116
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, 2024			$	1,082					$	43					$	871					$	11											$	2,007
Total realized and unrealized investment gains (losses):
Reported in Net investment gains (losses)			—						—						(3)						—												(3)
Reported in Net investment income			—						—						5						—												5
Reported in Other comprehensive income (loss)			(8)						—						(11)						—												(19)
Total realized and unrealized investment gains (losses)			(8)						—						(9)						—												(17)
Purchases			72						—						55						3												130
Sales			—						—						(5)						—												(5)
Settlements			(17)						—						(25)						—												(42)
Transfers into Level 3			—						—						—						—												—
Transfers out of Level 3			—						—						—						—												—
Balance as of June 30, 2024			$	1,129					$	43					$	887					$	14											$	2,073
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2024 recognized in Net income (loss) in the period			$	—					$	—					$	—					$	—											$	—
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2024 recognized in Other comprehensive income (loss) in the period			(8)						—						(11)						—												(19)

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 January 1, 2024			$	1,045					$	44					$	901					$	24											$	2,014
Total realized and unrealized investment gains (losses):
Reported in Net investment gains (losses)			—						—						(7)						—												(7)
Reported in Net investment income			—						—						11						6												17
Reported in Other comprehensive income (loss)			(20)						(1)						(16)						—												(37)
Total realized and unrealized investment gains (losses)			(20)						(1)						(12)						6												(27)
Purchases			146						—						73						3												222
Sales			—						—						(14)						(19)												(33)
Settlements			(53)						—						(42)						—												(95)
Transfers into Level 3			11						—						—						—												11
Transfers out of Level 3			—						—						(19)						—												(19)
Balance as of June 30, 2024			$	1,129					$	43					$	887					$	14											$	2,073
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2024 recognized in Net income (loss) in the period			$	—					$	—					$	—					$	2											$	2
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2024 recognized in Other comprehensive income (loss) in the period			(22)						(1)						(16)						—												(39)

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

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, 2024

Estimated Fair Value (In millions)

Valuation Technique(s)

Unobservable Input(s)

Range  (Weighted Average)

Fixed maturity securities

$

1,571

Discounted cash flow

Credit spread

1% - 6% (2%)

December 31, 2023

Estimated Fair Value (In millions)

Valuation Technique(s)

Unobservable Input(s)

Range  (Weighted Average)

Fixed maturity securities

$

1,495

Discounted cash flow

Credit spread

1% - 7% (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, 2024			Carrying Amount						Estimated Fair Value
(In millions)									Level 1						Level 2						Level 3						Total
Assets
Mortgage loans			$	986					$	—					$	—					$	944					$	944
Liabilities
Short-term debt			$	—					$	—					$	—					$	—					$	—
Long-term debt			2,971						—						2,841						—						2,841

December 31, 2023			Carrying Amount						Estimated Fair Value
(In millions)									Level 1						Level 2						Level 3						Total
Assets
Mortgage loans			$	1,035					$	—					$	—					$	997					$	997
Liabilities
Short-term debt			$	550					$	—					$	546					$	—					$	546
Long-term debt			2,481						—						2,385						—						2,385

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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.

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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.

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Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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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).

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