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v3.21.2

Fair Value Measurements (Tables) | 9 Months Ended
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Sep. 30, 2021
Fair Value Disclosures [Abstract] |
Assets and liabilities measured at fair value | Assets and liabilities of continuing operations measured and carried at fair value in the financial statements are summarized below (in millions):
| Level 1 |  | Level 2 |  | Level 3 |  | Total
September 30, 2021 |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |
Available for sale (“AFS”) fixed maturities: |  |  |  |  |  |  |
U.S. Government and government agencies | $ | 217 |  |  | $ | 1 |  |  | $ | — |  |  | $ | 218 |
States, municipalities and political subdivisions | — |  |  | 1,884 |  |  | 42 |  |  | 1,926 |
Foreign government | — |  |  | 217 |  |  | — |  |  | 217 |
Residential MBS | — |  |  | 736 |  |  | 18 |  |  | 754 |
Commercial MBS | — |  |  | 113 |  |  | — |  |  | 113 |
Collateralized loan obligations | — |  |  | 1,828 |  |  | 1 |  |  | 1,829 |
Other asset-backed securities | — |  |  | 2,335 |  |  | 309 |  |  | 2,644 |
Corporate and other | 15 |  |  | 2,463 |  |  | 248 |  |  | 2,726 |
Total AFS fixed maturities | 232 |  |  | 9,577 |  |  | 618 |  |  | 10,427 |
Trading fixed maturities | — |  |  | 29 |  |  | — |  |  | 29 |
Equity securities | 681 |  |  | 44 |  |  | 268 |  |  | 993 |
Assets of managed investment entities (“MIE”) | 316 |  |  | 4,802 |  |  | 12 |  |  | 5,130 |
Total assets accounted for at fair value | $ | 1,229 |  |  | $ | 14,452 |  |  | $ | 898 |  |  | $ | 16,579 |
Liabilities: |  |  |  |  |  |  |
Liabilities of managed investment entities | $ | 310 |  |  | $ | 4,712 |  |  | $ | 12 |  |  | $ | 5,034 |
Total liabilities accounted for at fair value | $ | 310 |  |  | $ | 4,712 |  |  | $ | 12 |  |  | $ | 5,034 |
December 31, 2020 |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |
Available for sale fixed maturities: |  |  |  |  |  |  |
U.S. Government and government agencies | $ | 195 |  |  | $ | 3 |  |  | $ | — |  |  | $ | 198 |
States, municipalities and political subdivisions | — |  |  | 2,273 |  |  | 39 |  |  | 2,312 |
Foreign government | — |  |  | 176 |  |  | — |  |  | 176 |
Residential MBS | — |  |  | 877 |  |  | 38 |  |  | 915 |
Commercial MBS | — |  |  | 90 |  |  | 2 |  |  | 92 |
Collateralized loan obligations | — |  |  | 1,046 |  |  | 16 |  |  | 1,062 |
Other asset-backed securities | — |  |  | 1,742 |  |  | 305 |  |  | 2,047 |
Corporate and other | 4 |  |  | 2,140 |  |  | 138 |  |  | 2,282 |
Total AFS fixed maturities | 199 |  |  | 8,347 |  |  | 538 |  |  | 9,084 |
Trading fixed maturities | — |  |  | 24 |  |  | — |  |  | 24 |
Equity securities | 665 |  |  | 48 |  |  | 176 |  |  | 889 |
Assets of managed investment entities | 217 |  |  | 4,733 |  |  | 21 |  |  | 4,971 |
Total assets accounted for at fair value | $ | 1,081 |  |  | $ | 13,152 |  |  | $ | 735 |  |  | $ | 14,968 |
Liabilities: |  |  |  |  |  |  |
Liabilities of managed investment entities | $ | 215 |  |  | $ | 4,678 |  |  | $ | 21 |  |  | $ | 4,914 |
Total liabilities accounted for at fair value | $ | 215 |  |  | $ | 4,678 |  |  | $ | 21 |  |  | $ | 4,914 |
Changes in balances of Level 3 financial assets | Changes in balances of Level 3 financial assets and liabilities carried at fair value during the third quarter and first nine months of 2021 and 2020 are presented below (in millions). The transfers into and out of Level 3 were due to changes in the availability of market observable inputs. All transfers are reflected in the table at fair value as of the end of the reporting period.
|  |  | Total realized/unrealized gains (losses) included in |  |  |  |  |  |  |  |  |  |
Balance at June 30, 2021 |  | Net earnings (loss) |  | OCI |  | Purchases and issuances |  | Sales and settlements |  | Transfer into Level 3 |  | Transfer out of Level 3 |  | Balance at September 30, 2021
AFS fixed maturities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government agency | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
State and municipal | 36 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 8 |  |  | (2) |  |  | 42 |
Residential MBS | 28 |  |  | (1) |  |  | — |  |  | — |  |  | (1) |  |  | — |  |  | (8) |  |  | 18 |
Commercial MBS | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Collateralized loan obligations | 6 |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | (6) |  |  | 1 |
Other asset-backed securities | 315 |  |  | 1 |  |  | (1) |  |  | 41 |  |  | (38) |  |  | — |  |  | (9) |  |  | 309 |
Corporate and other | 220 |  |  | — |  |  | (1) |  |  | 36 |  |  | (9) |  |  | 2 |  |  | — |  |  | 248 |
Total AFS fixed maturities | 605 |  |  | — |  |  | (1) |  |  | 77 |  |  | (48) |  |  | 10 |  |  | (25) |  |  | 618 |
Equity securities | 245 |  |  | 7 |  |  | — |  |  | 20 |  |  | (4) |  |  | — |  |  | — |  |  | 268 |
Assets of MIE | 15 |  |  | (2) |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | (2) |  |  | 12 |
Total Level 3 assets | $ | 865 |  |  | $ | 5 |  |  | $ | (1) |  |  | $ | 98 |  |  | $ | (52) |  |  | $ | 10 |  |  | $ | (27) |  |  | $ | 898 |
|  |  | Total realized/unrealized gains (losses) included in |  |  |  |  |  |  |  |  |  |
Balance at June 30, 2020 |  | Net earnings (loss) |  | OCI |  | Purchases and issuances |  | Sales and settlements |  | Transfer into Level 3 |  | Transfer out of Level 3 |  | Balance at September 30, 2020
AFS fixed maturities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government agency | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
State and municipal | 41 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 41 |
Residential MBS | 42 |  |  | (1) |  |  | — |  |  | — |  |  | (3) |  |  | 8 |  |  | (1) |  |  | 45 |
Commercial MBS | 6 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (4) |  |  | 2 |
Collateralized loan obligations | 55 |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 56 |
Other asset-backed securities | 293 |  |  | (1) |  |  | 2 |  |  | 8 |  |  | (15) |  |  | 14 |  |  | (8) |  |  | 293 |
Corporate and other | 178 |  |  | 3 |  |  | 1 |  |  | 8 |  |  | (28) |  |  | 1 |  |  | (26) |  |  | 137 |
Total AFS fixed maturities | 615 |  |  | 1 |  |  | 4 |  |  | 16 |  |  | (46) |  |  | 23 |  |  | (39) |  |  | 574 |
Equity securities | 164 |  |  | (5) |  |  | — |  |  | 5 |  |  | — |  |  | — |  |  | (5) |  |  | 159 |
Assets of MIE | 17 |  |  | (2) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 15 |
Assets of discontinued annuity operations | 3,044 |  |  | (7) |  |  | 19 |  |  | 83 |  |  | (113) |  |  | 224 |  |  | (193) |  |  | 3,057 |
Total Level 3 assets | $ | 3,840 |  |  | $ | (13) |  |  | $ | 23 |  |  | $ | 104 |  |  | $ | (159) |  |  | $ | 247 |  |  | $ | (237) |  |  | $ | 3,805 |
Liabilities of discontinued annuity operations | $ | (3,675) |  |  | $ | (5) |  |  | $ | — |  |  | $ | (56) |  |  | $ | 79 |  |  | $ | — |  |  | $ | — |  |  | $ | (3,657) |
Total Level 3 liabilities | $ | (3,675) |  |  | $ | (5) |  |  | $ | — |  |  | $ | (56) |  |  | $ | 79 |  |  | $ | — |  |  | $ | — |  |  | $ | (3,657) |
|  |  | Total realized/unrealized gains (losses) included in |  |  |  |  |  |  |  |  |  |  |  |
Balance at December 31, 2020 |  | Net earnings (loss) |  | OCI |  | Purchases and issuances |  | Sales and settlements |  | Transfer into Level 3 |  | Transfer out of Level 3 |  | Sale of annuity business |  | Balance at September 30, 2021
AFS fixed maturities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government agency | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
State and municipal | 39 |  |  | — |  |  | — |  |  | — |  |  | (3) |  |  | 8 |  |  | (2) |  |  | — |  |  | 42 |
Residential MBS | 38 |  |  | (4) |  |  | — |  |  | 6 |  |  | (2) |  |  | 6 |  |  | (26) |  |  | — |  |  | 18 |
Commercial MBS | 2 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (2) |  |  | — |  |  | — |
Collateralized loan obligations | 16 |  |  | 1 |  |  | — |  |  | — |  |  | (1) |  |  | — |  |  | (15) |  |  | — |  |  | 1 |
Other asset-backed securities | 305 |  |  | 1 |  |  | — |  |  | 131 |  |  | (110) |  |  | 14 |  |  | (32) |  |  | — |  |  | 309 |
Corporate and other | 138 |  |  | (1) |  |  | (2) |  |  | 142 |  |  | (29) |  |  | 5 |  |  | (5) |  |  | — |  |  | 248 |
Total AFS fixed maturities | 538 |  |  | (3) |  |  | (2) |  |  | 279 |  |  | (145) |  |  | 33 |  |  | (82) |  |  | — |  |  | 618 |
Equity securities | 176 |  |  | 78 |  |  | — |  |  | 44 |  |  | (23) |  |  | — |  |  | (7) |  |  | — |  |  | 268 |
Assets of MIE | 21 |  |  | 1 |  |  | — |  |  | 3 |  |  | — |  |  | 1 |  |  | (14) |  |  | — |  |  | 12 |
Assets of discontinued annuity operations | 2,971 |  |  | 85 |  |  | (21) |  |  | 209 |  |  | (328) |  |  | 32 |  |  | (229) |  |  | (2,719) |  |  | — |
Total Level 3 assets | $ | 3,706 |  |  | $ | 161 |  |  | $ | (23) |  |  | $ | 535 |  |  | $ | (496) |  |  | $ | 66 |  |  | $ | (332) |  |  | $ | (2,719) |  |  | $ | 898 |
Liabilities of discontinued annuity operations | $ | (3,933) |  |  | $ | (222) |  |  | $ | — |  |  | $ | (146) |  |  | $ | 158 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,143 |  |  | $ | — |
Total Level 3 liabilities | $ | (3,933) |  |  | $ | (222) |  |  | $ | — |  |  | $ | (146) |  |  | $ | 158 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,143 |  |  | $ | — |
|  |  | Total realized/unrealized gains (losses) included in |  |  |  |  |  |  |  |  |  |
Balance at December 31, 2019 |  | Net earnings (loss) |  | Other comprehensive income (loss) |  | Purchases and issuances |  | Sales and settlements |  | Transfer into Level 3 |  | Transfer out of Level 3 |  | Balance at September 30, 2020
AFS fixed maturities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government agency | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
State and municipal | 40 |  |  | — |  |  | 2 |  |  | — |  |  | (1) |  |  | — |  |  | — |  |  | 41 |
Residential MBS | 45 |  |  | — |  |  | (1) |  |  | — |  |  | (5) |  |  | 9 |  |  | (3) |  |  | 45 |
Commercial MBS | 6 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (4) |  |  | 2 |
Collateralized loan obligations | 1 |  |  | (1) |  |  | 4 |  |  | — |  |  | — |  |  | 52 |  |  | — |  |  | 56 |
Other asset-backed securities | 256 |  |  | (6) |  |  | 3 |  |  | 69 |  |  | (62) |  |  | 41 |  |  | (8) |  |  | 293 |
Corporate and other | 223 |  |  | 2 |  |  | — |  |  | 40 |  |  | (39) |  |  | 3 |  |  | (92) |  |  | 137 |
Total AFS fixed maturities | 571 |  |  | (5) |  |  | 8 |  |  | 109 |  |  | (107) |  |  | 105 |  |  | (107) |  |  | 574 |
Equity securities | 161 |  |  | (22) |  |  | — |  |  | 16 |  |  | — |  |  | 9 |  |  | (5) |  |  | 159 |
Assets of MIE | 17 |  |  | (4) |  |  | — |  |  | — |  |  | — |  |  | 2 |  |  | — |  |  | 15 |
Assets of discontinued annuity operations | 3,092 |  |  | (27) |  |  | 39 |  |  | 444 |  |  | (325) |  |  | 482 |  |  | (648) |  |  | 3,057 |
Total Level 3 assets | $ | 3,841 |  |  | $ | (58) |  |  | $ | 47 |  |  | $ | 569 |  |  | $ | (432) |  |  | $ | 598 |  |  | $ | (760) |  |  | $ | 3,805 |
Liabilities of discontinued annuity operations | $ | (3,730) |  |  | $ | 41 |  |  | $ | — |  |  | $ | (180) |  |  | $ | 212 |  |  | $ | — |  |  | $ | — |  |  | $ | (3,657) |
Total Level 3 liabilities | $ | (3,730) |  |  | $ | 41 |  |  | $ | — |  |  | $ | (180) |  |  | $ | 212 |  |  | $ | — |  |  | $ | — |  |  | $ | (3,657) |
Changes in balances of Level 3 financial liabilities | Changes in balances of Level 3 financial assets and liabilities carried at fair value during the third quarter and first nine months of 2021 and 2020 are presented below (in millions). The transfers into and out of Level 3 were due to changes in the availability of market observable inputs. All transfers are reflected in the table at fair value as of the end of the reporting period.
|  |  | Total realized/unrealized gains (losses) included in |  |  |  |  |  |  |  |  |  |
Balance at June 30, 2021 |  | Net earnings (loss) |  | OCI |  | Purchases and issuances |  | Sales and settlements |  | Transfer into Level 3 |  | Transfer out of Level 3 |  | Balance at September 30, 2021
AFS fixed maturities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government agency | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
State and municipal | 36 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 8 |  |  | (2) |  |  | 42 |
Residential MBS | 28 |  |  | (1) |  |  | — |  |  | — |  |  | (1) |  |  | — |  |  | (8) |  |  | 18 |
Commercial MBS | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Collateralized loan obligations | 6 |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | (6) |  |  | 1 |
Other asset-backed securities | 315 |  |  | 1 |  |  | (1) |  |  | 41 |  |  | (38) |  |  | — |  |  | (9) |  |  | 309 |
Corporate and other | 220 |  |  | — |  |  | (1) |  |  | 36 |  |  | (9) |  |  | 2 |  |  | — |  |  | 248 |
Total AFS fixed maturities | 605 |  |  | — |  |  | (1) |  |  | 77 |  |  | (48) |  |  | 10 |  |  | (25) |  |  | 618 |
Equity securities | 245 |  |  | 7 |  |  | — |  |  | 20 |  |  | (4) |  |  | — |  |  | — |  |  | 268 |
Assets of MIE | 15 |  |  | (2) |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | (2) |  |  | 12 |
Total Level 3 assets | $ | 865 |  |  | $ | 5 |  |  | $ | (1) |  |  | $ | 98 |  |  | $ | (52) |  |  | $ | 10 |  |  | $ | (27) |  |  | $ | 898 |
|  |  | Total realized/unrealized gains (losses) included in |  |  |  |  |  |  |  |  |  |
Balance at June 30, 2020 |  | Net earnings (loss) |  | OCI |  | Purchases and issuances |  | Sales and settlements |  | Transfer into Level 3 |  | Transfer out of Level 3 |  | Balance at September 30, 2020
AFS fixed maturities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government agency | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
State and municipal | 41 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 41 |
Residential MBS | 42 |  |  | (1) |  |  | — |  |  | — |  |  | (3) |  |  | 8 |  |  | (1) |  |  | 45 |
Commercial MBS | 6 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (4) |  |  | 2 |
Collateralized loan obligations | 55 |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 56 |
Other asset-backed securities | 293 |  |  | (1) |  |  | 2 |  |  | 8 |  |  | (15) |  |  | 14 |  |  | (8) |  |  | 293 |
Corporate and other | 178 |  |  | 3 |  |  | 1 |  |  | 8 |  |  | (28) |  |  | 1 |  |  | (26) |  |  | 137 |
Total AFS fixed maturities | 615 |  |  | 1 |  |  | 4 |  |  | 16 |  |  | (46) |  |  | 23 |  |  | (39) |  |  | 574 |
Equity securities | 164 |  |  | (5) |  |  | — |  |  | 5 |  |  | — |  |  | — |  |  | (5) |  |  | 159 |
Assets of MIE | 17 |  |  | (2) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 15 |
Assets of discontinued annuity operations | 3,044 |  |  | (7) |  |  | 19 |  |  | 83 |  |  | (113) |  |  | 224 |  |  | (193) |  |  | 3,057 |
Total Level 3 assets | $ | 3,840 |  |  | $ | (13) |  |  | $ | 23 |  |  | $ | 104 |  |  | $ | (159) |  |  | $ | 247 |  |  | $ | (237) |  |  | $ | 3,805 |
Liabilities of discontinued annuity operations | $ | (3,675) |  |  | $ | (5) |  |  | $ | — |  |  | $ | (56) |  |  | $ | 79 |  |  | $ | — |  |  | $ | — |  |  | $ | (3,657) |
Total Level 3 liabilities | $ | (3,675) |  |  | $ | (5) |  |  | $ | — |  |  | $ | (56) |  |  | $ | 79 |  |  | $ | — |  |  | $ | — |  |  | $ | (3,657) |
|  |  | Total realized/unrealized gains (losses) included in |  |  |  |  |  |  |  |  |  |  |  |
Balance at December 31, 2020 |  | Net earnings (loss) |  | OCI |  | Purchases and issuances |  | Sales and settlements |  | Transfer into Level 3 |  | Transfer out of Level 3 |  | Sale of annuity business |  | Balance at September 30, 2021
AFS fixed maturities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government agency | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
State and municipal | 39 |  |  | — |  |  | — |  |  | — |  |  | (3) |  |  | 8 |  |  | (2) |  |  | — |  |  | 42 |
Residential MBS | 38 |  |  | (4) |  |  | — |  |  | 6 |  |  | (2) |  |  | 6 |  |  | (26) |  |  | — |  |  | 18 |
Commercial MBS | 2 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (2) |  |  | — |  |  | — |
Collateralized loan obligations | 16 |  |  | 1 |  |  | — |  |  | — |  |  | (1) |  |  | — |  |  | (15) |  |  | — |  |  | 1 |
Other asset-backed securities | 305 |  |  | 1 |  |  | — |  |  | 131 |  |  | (110) |  |  | 14 |  |  | (32) |  |  | — |  |  | 309 |
Corporate and other | 138 |  |  | (1) |  |  | (2) |  |  | 142 |  |  | (29) |  |  | 5 |  |  | (5) |  |  | — |  |  | 248 |
Total AFS fixed maturities | 538 |  |  | (3) |  |  | (2) |  |  | 279 |  |  | (145) |  |  | 33 |  |  | (82) |  |  | — |  |  | 618 |
Equity securities | 176 |  |  | 78 |  |  | — |  |  | 44 |  |  | (23) |  |  | — |  |  | (7) |  |  | — |  |  | 268 |
Assets of MIE | 21 |  |  | 1 |  |  | — |  |  | 3 |  |  | — |  |  | 1 |  |  | (14) |  |  | — |  |  | 12 |
Assets of discontinued annuity operations | 2,971 |  |  | 85 |  |  | (21) |  |  | 209 |  |  | (328) |  |  | 32 |  |  | (229) |  |  | (2,719) |  |  | — |
Total Level 3 assets | $ | 3,706 |  |  | $ | 161 |  |  | $ | (23) |  |  | $ | 535 |  |  | $ | (496) |  |  | $ | 66 |  |  | $ | (332) |  |  | $ | (2,719) |  |  | $ | 898 |
Liabilities of discontinued annuity operations | $ | (3,933) |  |  | $ | (222) |  |  | $ | — |  |  | $ | (146) |  |  | $ | 158 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,143 |  |  | $ | — |
Total Level 3 liabilities | $ | (3,933) |  |  | $ | (222) |  |  | $ | — |  |  | $ | (146) |  |  | $ | 158 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,143 |  |  | $ | — |
|  |  | Total realized/unrealized gains (losses) included in |  |  |  |  |  |  |  |  |  |
Balance at December 31, 2019 |  | Net earnings (loss) |  | Other comprehensive income (loss) |  | Purchases and issuances |  | Sales and settlements |  | Transfer into Level 3 |  | Transfer out of Level 3 |  | Balance at September 30, 2020
AFS fixed maturities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government agency | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
State and municipal | 40 |  |  | — |  |  | 2 |  |  | — |  |  | (1) |  |  | — |  |  | — |  |  | 41 |
Residential MBS | 45 |  |  | — |  |  | (1) |  |  | — |  |  | (5) |  |  | 9 |  |  | (3) |  |  | 45 |
Commercial MBS | 6 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (4) |  |  | 2 |
Collateralized loan obligations | 1 |  |  | (1) |  |  | 4 |  |  | — |  |  | — |  |  | 52 |  |  | — |  |  | 56 |
Other asset-backed securities | 256 |  |  | (6) |  |  | 3 |  |  | 69 |  |  | (62) |  |  | 41 |  |  | (8) |  |  | 293 |
Corporate and other | 223 |  |  | 2 |  |  | — |  |  | 40 |  |  | (39) |  |  | 3 |  |  | (92) |  |  | 137 |
Total AFS fixed maturities | 571 |  |  | (5) |  |  | 8 |  |  | 109 |  |  | (107) |  |  | 105 |  |  | (107) |  |  | 574 |
Equity securities | 161 |  |  | (22) |  |  | — |  |  | 16 |  |  | — |  |  | 9 |  |  | (5) |  |  | 159 |
Assets of MIE | 17 |  |  | (4) |  |  | — |  |  | — |  |  | — |  |  | 2 |  |  | — |  |  | 15 |
Assets of discontinued annuity operations | 3,092 |  |  | (27) |  |  | 39 |  |  | 444 |  |  | (325) |  |  | 482 |  |  | (648) |  |  | 3,057 |
Total Level 3 assets | $ | 3,841 |  |  | $ | (58) |  |  | $ | 47 |  |  | $ | 569 |  |  | $ | (432) |  |  | $ | 598 |  |  | $ | (760) |  |  | $ | 3,805 |
Liabilities of discontinued annuity operations | $ | (3,730) |  |  | $ | 41 |  |  | $ | — |  |  | $ | (180) |  |  | $ | 212 |  |  | $ | — |  |  | $ | — |  |  | $ | (3,657) |
Total Level 3 liabilities | $ | (3,730) |  |  | $ | 41 |  |  | $ | — |  |  | $ | (180) |  |  | $ | 212 |  |  | $ | — |  |  | $ | — |  |  | $ | (3,657) |
Fair value of financial instruments | The carrying value and fair value of financial instruments of continuing operations that are not carried at fair value in the financial statements are summarized below (in millions):
| Carrying |  | Fair Value
| Value |  | Total |  | Level 1 |  | Level 2 |  | Level 3
September 30, 2021 |  |  |  |  |  |  |  |  |
Financial assets: |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 2,833 |  |  | $ | 2,833 |  |  | $ | 2,833 |  |  | $ | — |  |  | $ | — |
Mortgage loans | 537 |  |  | 555 |  |  | — |  |  | — |  |  | 555 |
Total financial assets not accounted for at fair value | $ | 3,370 |  |  | $ | 3,388 |  |  | $ | 2,833 |  |  | $ | — |  |  | $ | 555 |
Long-term debt | $ | 1,964 |  |  | $ | 2,295 |  |  | $ | — |  |  | $ | 2,292 |  |  | $ | 3 |
Total financial liabilities not accounted for at fair value | $ | 1,964 |  |  | $ | 2,295 |  |  | $ | — |  |  | $ | 2,292 |  |  | $ | 3 |
December 31, 2020 |  |  |  |  |  |  |  |  |
Financial assets: |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 1,665 |  |  | $ | 1,665 |  |  | $ | 1,665 |  |  | $ | — |  |  | $ | — |
Mortgage loans | 377 |  |  | 382 |  |  | — |  |  | — |  |  | 382 |
Total financial assets not accounted for at fair value | $ | 2,042 |  |  | $ | 2,047 |  |  | $ | 1,665 |  |  | $ | — |  |  | $ | 382 |
Long-term debt | $ | 1,963 |  |  | $ | 2,325 |  |  | $ | — |  |  | $ | 2,322 |  |  | $ | 3 |
Total financial liabilities not accounted for at fair value | $ | 1,963 |  |  | $ | 2,325 |  |  | $ | — |  |  | $ | 2,322 |  |  | $ | 3 |

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