XML 36 R25.htm IDEA: XBRL DOCUMENT
v3.22.2

Fair Value Measurements (Tables) | 6 Months Ended
--- | ---
Jun. 30, 2022
Fair Value Disclosures [Abstract] |
Assets and liabilities measured at fair value | Assets and liabilities measured and carried at fair value in the financial statements are summarized below (in millions):
| Level 1 |  | Level 2 |  | Level 3 |  | Total
June 30, 2022 |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |
Available for sale (“AFS”) fixed maturities: |  |  |  |  |  |  |
U.S. Government and government agencies | $ | 215 |  |  | $ | 1 |  |  | $ | — |  |  | $ | 216 |
States, municipalities and political subdivisions | — |  |  | 1,401 |  |  | 1 |  |  | 1,402 |
Foreign government | — |  |  | 246 |  |  | — |  |  | 246 |
Residential MBS | — |  |  | 1,547 |  |  | 8 |  |  | 1,555 |
Commercial MBS | — |  |  | 92 |  |  | — |  |  | 92 |
Collateralized loan obligations | — |  |  | 1,605 |  |  | 2 |  |  | 1,607 |
Other asset-backed securities | — |  |  | 1,945 |  |  | 313 |  |  | 2,258 |
Corporate and other | 10 |  |  | 2,138 |  |  | 269 |  |  | 2,417 |
Total AFS fixed maturities | 225 |  |  | 8,975 |  |  | 593 |  |  | 9,793 |
Trading fixed maturities | — |  |  | 29 |  |  | — |  |  | 29 |
Equity securities | 609 |  |  | 42 |  |  | 378 |  |  | 1,029 |
Assets of managed investment entities (“MIE”) | 344 |  |  | 4,862 |  |  | 12 |  |  | 5,218 |
Other assets — derivatives | — |  |  | 1 |  |  | — |  |  | 1 |
Total assets accounted for at fair value | $ | 1,178 |  |  | $ | 13,909 |  |  | $ | 983 |  |  | $ | 16,070 |
Liabilities: |  |  |  |  |  |  |
Contingent consideration — acquisitions | $ | — |  |  | $ | — |  |  | $ | 23 |  |  | $ | 23 |
Liabilities of managed investment entities | 339 |  |  | 4,783 |  |  | 11 |  |  | 5,133 |
Other liabilities — derivatives | — |  |  | 13 |  |  | — |  |  | 13 |
Total liabilities accounted for at fair value | $ | 339 |  |  | $ | 4,796 |  |  | $ | 34 |  |  | $ | 5,169 |
December 31, 2021 |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |
Available for sale fixed maturities: |  |  |  |  |  |  |
U.S. Government and government agencies | $ | 215 |  |  | $ | 1 |  |  | $ | — |  |  | $ | 216 |
States, municipalities and political subdivisions | — |  |  | 1,791 |  |  | 41 |  |  | 1,832 |
Foreign government | — |  |  | 246 |  |  | — |  |  | 246 |
Residential MBS | — |  |  | 946 |  |  | 14 |  |  | 960 |
Commercial MBS | — |  |  | 104 |  |  | — |  |  | 104 |
Collateralized loan obligations | — |  |  | 1,643 |  |  | — |  |  | 1,643 |
Other asset-backed securities | — |  |  | 2,398 |  |  | 278 |  |  | 2,676 |
Corporate and other | 11 |  |  | 2,402 |  |  | 267 |  |  | 2,680 |
Total AFS fixed maturities | 226 |  |  | 9,531 |  |  | 600 |  |  | 10,357 |
Trading fixed maturities | — |  |  | 28 |  |  | — |  |  | 28 |
Equity securities | 679 |  |  | 50 |  |  | 313 |  |  | 1,042 |
Assets of managed investment entities | 390 |  |  | 4,893 |  |  | 13 |  |  | 5,296 |
Total assets accounted for at fair value | $ | 1,295 |  |  | $ | 14,502 |  |  | $ | 926 |  |  | $ | 16,723 |
Liabilities: |  |  |  |  |  |  |
Contingent consideration — acquisitions | $ | — |  |  | $ | — |  |  | $ | 23 |  |  | $ | 23 |
Liabilities of managed investment entities | 384 |  |  | 4,823 |  |  | 13 |  |  | 5,220 |
Total liabilities accounted for at fair value | $ | 384 |  |  | $ | 4,823 |  |  | $ | 36 |  |  | $ | 5,243 |
Changes in balances of Level 3 financial assets | Changes in balances of Level 3 financial assets and liabilities carried at fair value during the first six months of 2022 and 2021 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 March 31, 2022 |  | Net earnings (loss) |  | OCI |  | Purchases and issuances |  | Sales and settlements |  | Transfer into Level 3 |  | Transfer out of Level 3 |  | Balance at June 30, 2022
AFS fixed maturities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government agency | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
State and municipal | 33 |  |  | — |  |  | (1) |  |  | — |  |  | — |  |  | — |  |  | (31) |  |  | 1 |
Residential MBS | 11 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (3) |  |  | 8 |
Commercial MBS | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Collateralized loan obligations | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2 |  |  | — |  |  | 2 |
Other asset-backed securities | 337 |  |  | — |  |  | (7) |  |  | 10 |  |  | (27) |  |  | — |  |  | — |  |  | 313 |
Corporate and other | 244 |  |  | — |  |  | (4) |  |  | 32 |  |  | (3) |  |  | — |  |  | — |  |  | 269 |
Total AFS fixed maturities | 625 |  |  | — |  |  | (12) |  |  | 42 |  |  | (30) |  |  | 2 |  |  | (34) |  |  | 593 |
Equity securities | 361 |  |  | — |  |  | — |  |  | 21 |  |  | (2) |  |  | — |  |  | (2) |  |  | 378 |
Assets of MIE | 12 |  |  | (1) |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | 12 |
Total Level 3 assets | $ | 998 |  |  | $ | (1) |  |  | $ | (12) |  |  | $ | 64 |  |  | $ | (32) |  |  | $ | 2 |  |  | $ | (36) |  |  | $ | 983 |
Contingent consideration — acquisitions | $ | (23) |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (23) |
Total Level 3 liabilities | $ | (23) |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (23) |
|  |  | Total realized/unrealized gains (losses) included in |  |  |  |  |  |  |  |  |  |  |  |
Balance at March 31, 2021 |  | 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 June 30, 2021
AFS fixed maturities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government agency | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
State and municipal | 39 |  |  | — |  |  | — |  |  | — |  |  | (3) |  |  | — |  |  | — |  |  | — |  |  | 36 |
Residential MBS | 27 |  |  | — |  |  | — |  |  | — |  |  | (1) |  |  | 3 |  |  | (1) |  |  | — |  |  | 28 |
Commercial MBS | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Collateralized loan obligations | 6 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 6 |
Other asset-backed securities | 326 |  |  | — |  |  | 1 |  |  | 38 |  |  | (49) |  |  | — |  |  | (1) |  |  | — |  |  | 315 |
Corporate and other | 204 |  |  | (2) |  |  | — |  |  | 22 |  |  | (2) |  |  | 1 |  |  | (3) |  |  | — |  |  | 220 |
Total AFS fixed maturities | 602 |  |  | (2) |  |  | 1 |  |  | 60 |  |  | (55) |  |  | 4 |  |  | (5) |  |  | — |  |  | 605 |
Equity securities | 227 |  |  | 18 |  |  | — |  |  | 12 |  |  | (5) |  |  | — |  |  | (7) |  |  | — |  |  | 245 |
Assets of MIE | 14 |  |  | (1) |  |  | — |  |  | 1 |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | 15 |
Assets of discontinued annuity operations | 2,806 |  |  | 15 |  |  | 21 |  |  | 13 |  |  | (136) |  |  | — |  |  | — |  |  | (2,719) |  |  | — |
Total Level 3 assets | $ | 3,649 |  |  | $ | 30 |  |  | $ | 22 |  |  | $ | 86 |  |  | $ | (196) |  |  | $ | 5 |  |  | $ | (12) |  |  | $ | (2,719) |  |  | $ | 865 |
Liabilities of discontinued annuity operations | $ | (3,954) |  |  | $ | (183) |  |  | $ | — |  |  | $ | (72) |  |  | $ | 66 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,143 |  |  | $ | — |
Total Level 3 liabilities | $ | (3,954) |  |  | $ | (183) |  |  | $ | — |  |  | $ | (72) |  |  | $ | 66 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,143 |  |  | $ | — |
|  |  | Total realized/unrealized gains (losses) included in |  |  |  |  |  |  |  |  |  |
Balance at December 31, 2021 |  | Net earnings (loss) |  | OCI |  | Purchases and issuances |  | Sales and settlements |  | Transfer into Level 3 |  | Transfer out of Level 3 |  | Balance at June 30, 2022
AFS fixed maturities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government agency | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
State and municipal | 41 |  |  | — |  |  | (3) |  |  | — |  |  | (1) |  |  | — |  |  | (36) |  |  | 1 |
Residential MBS | 14 |  |  | — |  |  | — |  |  | — |  |  | (1) |  |  | — |  |  | (5) |  |  | 8 |
Commercial MBS | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Collateralized loan obligations | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2 |  |  | — |  |  | 2 |
Other asset-backed securities | 278 |  |  | 2 |  |  | (16) |  |  | 57 |  |  | (42) |  |  | 34 |  |  | — |  |  | 313 |
Corporate and other | 267 |  |  | — |  |  | (14) |  |  | 60 |  |  | (10) |  |  | — |  |  | (34) |  |  | 269 |
Total AFS fixed maturities | 600 |  |  | 2 |  |  | (33) |  |  | 117 |  |  | (54) |  |  | 36 |  |  | (75) |  |  | 593 |
Equity securities | 313 |  |  | 22 |  |  | — |  |  | 51 |  |  | (5) |  |  | 3 |  |  | (6) |  |  | 378 |
Assets of MIE | 13 |  |  | (2) |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | 12 |
Total Level 3 assets | $ | 926 |  |  | $ | 22 |  |  | $ | (33) |  |  | $ | 169 |  |  | $ | (59) |  |  | $ | 39 |  |  | $ | (81) |  |  | $ | 983 |
Contingent consideration — acquisitions | $ | (23) |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (23) |
Total Level 3 liabilities | $ | (23) |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (23) |
|  |  | 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 June 30, 2021
AFS fixed maturities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government agency | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
State and municipal | 39 |  |  | — |  |  | — |  |  | — |  |  | (3) |  |  | — |  |  | — |  |  | — |  |  | 36 |
Residential MBS | 38 |  |  | (3) |  |  | — |  |  | 6 |  |  | (1) |  |  | 6 |  |  | (18) |  |  | — |  |  | 28 |
Commercial MBS | 2 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (2) |  |  | — |  |  | — |
Collateralized loan obligations | 16 |  |  | 1 |  |  | (1) |  |  | — |  |  | (1) |  |  | — |  |  | (9) |  |  | — |  |  | 6 |
Other asset-backed securities | 305 |  |  | — |  |  | 1 |  |  | 90 |  |  | (72) |  |  | 14 |  |  | (23) |  |  | — |  |  | 315 |
Corporate and other | 138 |  |  | (1) |  |  | (1) |  |  | 106 |  |  | (20) |  |  | 3 |  |  | (5) |  |  | — |  |  | 220 |
Total AFS fixed maturities | 538 |  |  | (3) |  |  | (1) |  |  | 202 |  |  | (97) |  |  | 23 |  |  | (57) |  |  | — |  |  | 605 |
Equity securities | 176 |  |  | 71 |  |  | — |  |  | 24 |  |  | (19) |  |  | — |  |  | (7) |  |  | — |  |  | 245 |
Assets of MIE | 21 |  |  | 3 |  |  | — |  |  | 2 |  |  | — |  |  | 1 |  |  | (12) |  |  | — |  |  | 15 |
Assets of discontinued annuity operations | 2,971 |  |  | 85 |  |  | (21) |  |  | 209 |  |  | (328) |  |  | 32 |  |  | (229) |  |  | (2,719) |  |  | — |
Total Level 3 assets | $ | 3,706 |  |  | $ | 156 |  |  | $ | (22) |  |  | $ | 437 |  |  | $ | (444) |  |  | $ | 56 |  |  | $ | (305) |  |  | $ | (2,719) |  |  | $ | 865 |
Liabilities of discontinued annuity operations | $ | (3,933) |  |  | $ | (222) |  |  | $ | — |  |  | $ | (146) |  |  | $ | 158 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,143 |  |  | $ | — |
Total Level 3 liabilities | $ | (3,933) |  |  | $ | (222) |  |  | $ | — |  |  | $ | (146) |  |  | $ | 158 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,143 |  |  | $ | — |
Changes in balances of Level 3 financial liabilities | Changes in balances of Level 3 financial assets and liabilities carried at fair value during the first six months of 2022 and 2021 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 March 31, 2022 |  | Net earnings (loss) |  | OCI |  | Purchases and issuances |  | Sales and settlements |  | Transfer into Level 3 |  | Transfer out of Level 3 |  | Balance at June 30, 2022
AFS fixed maturities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government agency | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
State and municipal | 33 |  |  | — |  |  | (1) |  |  | — |  |  | — |  |  | — |  |  | (31) |  |  | 1 |
Residential MBS | 11 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (3) |  |  | 8 |
Commercial MBS | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Collateralized loan obligations | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2 |  |  | — |  |  | 2 |
Other asset-backed securities | 337 |  |  | — |  |  | (7) |  |  | 10 |  |  | (27) |  |  | — |  |  | — |  |  | 313 |
Corporate and other | 244 |  |  | — |  |  | (4) |  |  | 32 |  |  | (3) |  |  | — |  |  | — |  |  | 269 |
Total AFS fixed maturities | 625 |  |  | — |  |  | (12) |  |  | 42 |  |  | (30) |  |  | 2 |  |  | (34) |  |  | 593 |
Equity securities | 361 |  |  | — |  |  | — |  |  | 21 |  |  | (2) |  |  | — |  |  | (2) |  |  | 378 |
Assets of MIE | 12 |  |  | (1) |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | 12 |
Total Level 3 assets | $ | 998 |  |  | $ | (1) |  |  | $ | (12) |  |  | $ | 64 |  |  | $ | (32) |  |  | $ | 2 |  |  | $ | (36) |  |  | $ | 983 |
Contingent consideration — acquisitions | $ | (23) |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (23) |
Total Level 3 liabilities | $ | (23) |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (23) |
|  |  | Total realized/unrealized gains (losses) included in |  |  |  |  |  |  |  |  |  |  |  |
Balance at March 31, 2021 |  | 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 June 30, 2021
AFS fixed maturities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government agency | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
State and municipal | 39 |  |  | — |  |  | — |  |  | — |  |  | (3) |  |  | — |  |  | — |  |  | — |  |  | 36 |
Residential MBS | 27 |  |  | — |  |  | — |  |  | — |  |  | (1) |  |  | 3 |  |  | (1) |  |  | — |  |  | 28 |
Commercial MBS | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Collateralized loan obligations | 6 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 6 |
Other asset-backed securities | 326 |  |  | — |  |  | 1 |  |  | 38 |  |  | (49) |  |  | — |  |  | (1) |  |  | — |  |  | 315 |
Corporate and other | 204 |  |  | (2) |  |  | — |  |  | 22 |  |  | (2) |  |  | 1 |  |  | (3) |  |  | — |  |  | 220 |
Total AFS fixed maturities | 602 |  |  | (2) |  |  | 1 |  |  | 60 |  |  | (55) |  |  | 4 |  |  | (5) |  |  | — |  |  | 605 |
Equity securities | 227 |  |  | 18 |  |  | — |  |  | 12 |  |  | (5) |  |  | — |  |  | (7) |  |  | — |  |  | 245 |
Assets of MIE | 14 |  |  | (1) |  |  | — |  |  | 1 |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | 15 |
Assets of discontinued annuity operations | 2,806 |  |  | 15 |  |  | 21 |  |  | 13 |  |  | (136) |  |  | — |  |  | — |  |  | (2,719) |  |  | — |
Total Level 3 assets | $ | 3,649 |  |  | $ | 30 |  |  | $ | 22 |  |  | $ | 86 |  |  | $ | (196) |  |  | $ | 5 |  |  | $ | (12) |  |  | $ | (2,719) |  |  | $ | 865 |
Liabilities of discontinued annuity operations | $ | (3,954) |  |  | $ | (183) |  |  | $ | — |  |  | $ | (72) |  |  | $ | 66 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,143 |  |  | $ | — |
Total Level 3 liabilities | $ | (3,954) |  |  | $ | (183) |  |  | $ | — |  |  | $ | (72) |  |  | $ | 66 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,143 |  |  | $ | — |
|  |  | Total realized/unrealized gains (losses) included in |  |  |  |  |  |  |  |  |  |
Balance at December 31, 2021 |  | Net earnings (loss) |  | OCI |  | Purchases and issuances |  | Sales and settlements |  | Transfer into Level 3 |  | Transfer out of Level 3 |  | Balance at June 30, 2022
AFS fixed maturities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government agency | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
State and municipal | 41 |  |  | — |  |  | (3) |  |  | — |  |  | (1) |  |  | — |  |  | (36) |  |  | 1 |
Residential MBS | 14 |  |  | — |  |  | — |  |  | — |  |  | (1) |  |  | — |  |  | (5) |  |  | 8 |
Commercial MBS | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Collateralized loan obligations | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2 |  |  | — |  |  | 2 |
Other asset-backed securities | 278 |  |  | 2 |  |  | (16) |  |  | 57 |  |  | (42) |  |  | 34 |  |  | — |  |  | 313 |
Corporate and other | 267 |  |  | — |  |  | (14) |  |  | 60 |  |  | (10) |  |  | — |  |  | (34) |  |  | 269 |
Total AFS fixed maturities | 600 |  |  | 2 |  |  | (33) |  |  | 117 |  |  | (54) |  |  | 36 |  |  | (75) |  |  | 593 |
Equity securities | 313 |  |  | 22 |  |  | — |  |  | 51 |  |  | (5) |  |  | 3 |  |  | (6) |  |  | 378 |
Assets of MIE | 13 |  |  | (2) |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | 12 |
Total Level 3 assets | $ | 926 |  |  | $ | 22 |  |  | $ | (33) |  |  | $ | 169 |  |  | $ | (59) |  |  | $ | 39 |  |  | $ | (81) |  |  | $ | 983 |
Contingent consideration — acquisitions | $ | (23) |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (23) |
Total Level 3 liabilities | $ | (23) |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (23) |
|  |  | 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 June 30, 2021
AFS fixed maturities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government agency | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
State and municipal | 39 |  |  | — |  |  | — |  |  | — |  |  | (3) |  |  | — |  |  | — |  |  | — |  |  | 36 |
Residential MBS | 38 |  |  | (3) |  |  | — |  |  | 6 |  |  | (1) |  |  | 6 |  |  | (18) |  |  | — |  |  | 28 |
Commercial MBS | 2 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (2) |  |  | — |  |  | — |
Collateralized loan obligations | 16 |  |  | 1 |  |  | (1) |  |  | — |  |  | (1) |  |  | — |  |  | (9) |  |  | — |  |  | 6 |
Other asset-backed securities | 305 |  |  | — |  |  | 1 |  |  | 90 |  |  | (72) |  |  | 14 |  |  | (23) |  |  | — |  |  | 315 |
Corporate and other | 138 |  |  | (1) |  |  | (1) |  |  | 106 |  |  | (20) |  |  | 3 |  |  | (5) |  |  | — |  |  | 220 |
Total AFS fixed maturities | 538 |  |  | (3) |  |  | (1) |  |  | 202 |  |  | (97) |  |  | 23 |  |  | (57) |  |  | — |  |  | 605 |
Equity securities | 176 |  |  | 71 |  |  | — |  |  | 24 |  |  | (19) |  |  | — |  |  | (7) |  |  | — |  |  | 245 |
Assets of MIE | 21 |  |  | 3 |  |  | — |  |  | 2 |  |  | — |  |  | 1 |  |  | (12) |  |  | — |  |  | 15 |
Assets of discontinued annuity operations | 2,971 |  |  | 85 |  |  | (21) |  |  | 209 |  |  | (328) |  |  | 32 |  |  | (229) |  |  | (2,719) |  |  | — |
Total Level 3 assets | $ | 3,706 |  |  | $ | 156 |  |  | $ | (22) |  |  | $ | 437 |  |  | $ | (444) |  |  | $ | 56 |  |  | $ | (305) |  |  | $ | (2,719) |  |  | $ | 865 |
Liabilities of discontinued annuity operations | $ | (3,933) |  |  | $ | (222) |  |  | $ | — |  |  | $ | (146) |  |  | $ | 158 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,143 |  |  | $ | — |
Total Level 3 liabilities | $ | (3,933) |  |  | $ | (222) |  |  | $ | — |  |  | $ | (146) |  |  | $ | 158 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,143 |  |  | $ | — |
Fair value of financial instruments | The carrying value and fair value of financial instruments 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
June 30, 2022 |  |  |  |  |  |  |  |  |
Financial assets: |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 967 |  |  | $ | 967 |  |  | $ | 967 |  |  | $ | — |  |  | $ | — |
Mortgage loans | 692 |  |  | 650 |  |  | — |  |  | — |  |  | 650 |
Total financial assets not accounted for at fair value | $ | 1,659 |  |  | $ | 1,617 |  |  | $ | 967 |  |  | $ | — |  |  | $ | 650 |
Long-term debt | $ | 1,542 |  |  | $ | 1,396 |  |  | $ | — |  |  | $ | 1,393 |  |  | $ | 3 |
Total financial liabilities not accounted for at fair value | $ | 1,542 |  |  | $ | 1,396 |  |  | $ | — |  |  | $ | 1,393 |  |  | $ | 3 |
December 31, 2021 |  |  |  |  |  |  |  |  |
Financial assets: |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 2,131 |  |  | $ | 2,131 |  |  | $ | 2,131 |  |  | $ | — |  |  | $ | — |
Mortgage loans | 520 |  |  | 533 |  |  | — |  |  | — |  |  | 533 |
Total financial assets not accounted for at fair value | $ | 2,651 |  |  | $ | 2,664 |  |  | $ | 2,131 |  |  | $ | — |  |  | $ | 533 |
Long-term debt | $ | 1,964 |  |  | $ | 2,261 |  |  | $ | — |  |  | $ | 2,258 |  |  | $ | 3 |
Total financial liabilities not accounted for at fair value | $ | 1,964 |  |  | $ | 2,261 |  |  | $ | — |  |  | $ | 2,258 |  |  | $ | 3 |

X
- 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 https://asc.fasb.org/extlink&oid=126976982&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 https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueAssetsMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -URI https://asc.fasb.org/extlink&oid=123594938&loc=d3e13467-108611 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 (a) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes 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 liability. + References Reference 1: 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 https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19279-110258 + Details
Name: | us-gaap_FairValueLiabilitiesMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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 https://asc.fasb.org/extlink&oid=126976982&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 https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
Name: | us-gaap_ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration