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Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2020
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 1Level 2Level 3Total
September 30, 2020
Assets:
Available for sale (“AFS”) fixed maturities:
U.S. Government and government agencies$182 $27 $15 $224 
States, municipalities and political subdivisions— 6,616 106 6,722 
Foreign government— 195 — 195 
Residential MBS— 2,959 178 3,137 
Commercial MBS— 846 10 856 
Collateralized loan obligations— 4,395 212 4,607 
Other asset-backed securities— 6,075 1,344 7,419 
Corporate and other24 23,528 1,481 25,033 
Total AFS fixed maturities206 44,641 3,346 48,193 
Trading fixed maturities— 92 — 92 
Equity securities1,090 72 444 1,606 
Equity index call options— 697 — 697 
Assets of managed investment entities (“MIE”)148 4,554 15 4,717 
Variable annuity assets (separate accounts) (*)— 603 — 603 
Other assets — derivatives— 114 — 114 
Total assets accounted for at fair value$1,444 $50,773 $3,805 $56,022 
Liabilities:
Liabilities of managed investment entities$142 $4,384 $15 $4,541 
Derivatives in annuity benefits accumulated— — 3,657 3,657 
Other liabilities — derivatives— 9 — 9 
Total liabilities accounted for at fair value$142 $4,393 $3,672 $8,207 
December 31, 2019
Assets:
Available for sale fixed maturities:
U.S. Government and government agencies$151 $43 $15 $209 
States, municipalities and political subdivisions— 6,858 105 6,963 
Foreign government— 172 — 172 
Residential MBS— 2,987 173 3,160 
Commercial MBS— 892 35 927 
Collateralized loan obligations— 4,265 15 4,280 
Other asset-backed securities— 5,842 1,286 7,128 
Corporate and other29 21,879 1,758 23,666 
Total AFS fixed maturities180 42,938 3,387 46,505 
Trading fixed maturities2 111 — 113 
Equity securities1,433 67 437 1,937 
Equity index call options— 924 — 924 
Assets of managed investment entities213 4,506 17 4,736 
Variable annuity assets (separate accounts) (*)— 628 — 628 
Other assets — derivatives— 50 — 50 
Total assets accounted for at fair value$1,828 $49,224 $3,841 $54,893 
Liabilities:
Liabilities of managed investment entities$206 $4,349 $16 $4,571 
Derivatives in annuity benefits accumulated— — 3,730 3,730 
Other liabilities — derivatives— 10 — 10 
Total liabilities accounted for at fair value$206 $4,359 $3,746 $8,311 
(*)Variable annuity liabilities equal the fair value of variable annuity assets.
Unobservable inputs used by management in determining fair value of embedded derivatives The following table presents information about the unobservable inputs used by management in determining fair value of these Level 3 liabilities. See Note F — “Derivatives.”
Unobservable InputRange
Adjustment for insurance subsidiary’s credit risk
0.2% – 2.9% over the risk-free rate
Risk margin for uncertainty in cash flows
0.99% reduction in the discount rate
Surrenders
4% – 23% of indexed account value
Partial surrenders
2% – 11% of indexed account value
Annuitizations
0.1% – 1% of indexed account value
Deaths
1.8% – 13.2% of indexed account value
Budgeted option costs
2.2% – 2.8% of indexed account value
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 2020 and 2019 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, 2020Net
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
$15 $1 $(1)$— $— $— $— $15 
State and municipal107 — — — (1)— — 106 
Residential MBS156 (4)1 — (6)49 (18)178 
Commercial MBS33 (1)— — — — (22)10 
Collateralized loan obligations207 (1)6 — — — — 212 
Other asset-backed securities
1,328 (2)13 39 (75)77 (36)1,344 
Corporate and other1,525 6 4 53 (77)121 (151)1,481 
Total AFS fixed maturities3,371 (1)23 92 (159)247 (227)3,346 
Equity securities452 (10)— 12 — — (10)444 
Assets of MIE17 (2)— — — — — 15 
Total Level 3 assets$3,840 $(13)$23 $104 $(159)$247 $(237)$3,805 
Embedded derivatives (a)$(3,675)$(5)$— $(56)$79 $— $— $(3,657)
Total Level 3 liabilities (b)
$(3,675)$(5)$— $(56)$79 $— $— $(3,657)

Total realized/unrealized
gains (losses) included in
Balance at June 30, 2019Net
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, 2019
AFS fixed maturities:
U.S. government agency
$8 $— $— $— $— $— $— $8 
State and municipal82 — 2 — — 18 — 102 
Residential MBS139 1 (1)— (4)22 (1)156 
Commercial MBS50 1 — — — 4 — 55 
Collateralized loan obligations50 (2)1 8 — — — 57 
Other asset-backed securities
367 — 1 49 (3)— — 414 
Corporate and other2,014 — 20 324 (81)10 (1)2,286 
Total AFS fixed maturities
2,710 — 23 381 (88)54 (2)3,078 
Equity securities377 (7)— 18 (2)34 — 420 
Assets of MIE19 (1)— — — — — 18 
Total Level 3 assets$3,106 $(8)$23 $399 $(90)$88 $(2)$3,516 
Embedded derivatives (a)$(3,541)$70 $— $(63)$65 $— $— $(3,469)
Total Level 3 liabilities (b)
$(3,541)$70 $— $(63)$65 $— $— $(3,469)
(a)Total realized/unrealized gains (losses) included in net earnings for the embedded derivatives reflects a favorable adjustment related to the unlocking of actuarial assumptions of $240 million in the third quarter of 2020 compared to $181 million in the third quarter of 2019.
(b)As previously discussed, these tables exclude the portion of MIE liabilities allocated to Level 3, which are derived from the fair value of MIE assets.
Total realized/unrealized
gains (losses) included in
Balance at December 31, 2019Net
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
$15 $3 $(3)$— $— $— $— $15 
State and municipal105 — 6 — (3)— (2)106 
Residential MBS173 1 (7)— (15)51 (25)178 
Commercial MBS35 — — — (3)— (22)10 
Collateralized loan obligations15 (11)21 — — 187 — 212 
Other asset-backed securities
1,286 (16)6 314 (278)211 (179)1,344 
Corporate and other1,758 4 24 220 (133)130 (522)1,481 
Total AFS fixed maturities3,387 (19)47 534 (432)579 (750)3,346 
Equity securities437 (35)— 35 — 17 (10)444 
Assets of MIE17 (4)— — — 2 — 15 
Total Level 3 assets$3,841 $(58)$47 $569 $(432)$598 $(760)$3,805 
Embedded derivatives (a)$(3,730)$41 $— $(180)$212 $— $— $(3,657)
Total Level 3 liabilities (b)
$(3,730)$41 $— $(180)$212 $— $— $(3,657)


Total realized/unrealized
gains (losses) included in
Balance at December 31, 2018Net
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, 2019
AFS fixed maturities:
U.S. government agency
$9 $— $— $— $(1)$— $— $8 
State and municipal59 — 9 — (2)36 — 102 
Residential MBS197 10 (6)— (14)24 (55)156 
Commercial MBS56 3 — — (3)4 (5)55 
Collateralized loan obligations116 (5)7 8 — 13 (82)57 
Other asset-backed securities
731 — 6 141 (135)— (329)414 
Corporate and other1,996 2 71 985 (330)12 (450)2,286 
Total AFS fixed maturities
3,164 10 87 1,134 (485)89 (921)3,078 
Equity securities336 (7)— 38 (3)56 — 420 
Assets of MIE21 (3)— — — — — 18 
Total Level 3 assets$3,521 $— $87 $1,172 $(488)$145 $(921)$3,516 
Embedded derivatives (a)$(2,720)$(643)$— $(276)$170 $— $— $(3,469)
Total Level 3 liabilities (b)
$(2,720)$(643)$— $(276)$170 $— $— $(3,469)
(a)Total realized/unrealized gains (losses) included in net earnings for the embedded derivatives reflects a favorable adjustment related to the unlocking of actuarial assumptions of $240 million in the first nine months of 2020 compared to $181 million in the first nine months of 2019.
(b)As previously discussed, these tables exclude the portion of MIE liabilities allocated to Level 3, which are derived from the fair value of the MIE assets.
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 2020 and 2019 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, 2020Net
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
$15 $1 $(1)$— $— $— $— $15 
State and municipal107 — — — (1)— — 106 
Residential MBS156 (4)1 — (6)49 (18)178 
Commercial MBS33 (1)— — — — (22)10 
Collateralized loan obligations207 (1)6 — — — — 212 
Other asset-backed securities
1,328 (2)13 39 (75)77 (36)1,344 
Corporate and other1,525 6 4 53 (77)121 (151)1,481 
Total AFS fixed maturities3,371 (1)23 92 (159)247 (227)3,346 
Equity securities452 (10)— 12 — — (10)444 
Assets of MIE17 (2)— — — — — 15 
Total Level 3 assets$3,840 $(13)$23 $104 $(159)$247 $(237)$3,805 
Embedded derivatives (a)$(3,675)$(5)$— $(56)$79 $— $— $(3,657)
Total Level 3 liabilities (b)
$(3,675)$(5)$— $(56)$79 $— $— $(3,657)

Total realized/unrealized
gains (losses) included in
Balance at June 30, 2019Net
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, 2019
AFS fixed maturities:
U.S. government agency
$8 $— $— $— $— $— $— $8 
State and municipal82 — 2 — — 18 — 102 
Residential MBS139 1 (1)— (4)22 (1)156 
Commercial MBS50 1 — — — 4 — 55 
Collateralized loan obligations50 (2)1 8 — — — 57 
Other asset-backed securities
367 — 1 49 (3)— — 414 
Corporate and other2,014 — 20 324 (81)10 (1)2,286 
Total AFS fixed maturities
2,710 — 23 381 (88)54 (2)3,078 
Equity securities377 (7)— 18 (2)34 — 420 
Assets of MIE19 (1)— — — — — 18 
Total Level 3 assets$3,106 $(8)$23 $399 $(90)$88 $(2)$3,516 
Embedded derivatives (a)$(3,541)$70 $— $(63)$65 $— $— $(3,469)
Total Level 3 liabilities (b)
$(3,541)$70 $— $(63)$65 $— $— $(3,469)
(a)Total realized/unrealized gains (losses) included in net earnings for the embedded derivatives reflects a favorable adjustment related to the unlocking of actuarial assumptions of $240 million in the third quarter of 2020 compared to $181 million in the third quarter of 2019.
(b)As previously discussed, these tables exclude the portion of MIE liabilities allocated to Level 3, which are derived from the fair value of MIE assets.
Total realized/unrealized
gains (losses) included in
Balance at December 31, 2019Net
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
$15 $3 $(3)$— $— $— $— $15 
State and municipal105 — 6 — (3)— (2)106 
Residential MBS173 1 (7)— (15)51 (25)178 
Commercial MBS35 — — — (3)— (22)10 
Collateralized loan obligations15 (11)21 — — 187 — 212 
Other asset-backed securities
1,286 (16)6 314 (278)211 (179)1,344 
Corporate and other1,758 4 24 220 (133)130 (522)1,481 
Total AFS fixed maturities3,387 (19)47 534 (432)579 (750)3,346 
Equity securities437 (35)— 35 — 17 (10)444 
Assets of MIE17 (4)— — — 2 — 15 
Total Level 3 assets$3,841 $(58)$47 $569 $(432)$598 $(760)$3,805 
Embedded derivatives (a)$(3,730)$41 $— $(180)$212 $— $— $(3,657)
Total Level 3 liabilities (b)
$(3,730)$41 $— $(180)$212 $— $— $(3,657)


Total realized/unrealized
gains (losses) included in
Balance at December 31, 2018Net
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, 2019
AFS fixed maturities:
U.S. government agency
$9 $— $— $— $(1)$— $— $8 
State and municipal59 — 9 — (2)36 — 102 
Residential MBS197 10 (6)— (14)24 (55)156 
Commercial MBS56 3 — — (3)4 (5)55 
Collateralized loan obligations116 (5)7 8 — 13 (82)57 
Other asset-backed securities
731 — 6 141 (135)— (329)414 
Corporate and other1,996 2 71 985 (330)12 (450)2,286 
Total AFS fixed maturities
3,164 10 87 1,134 (485)89 (921)3,078 
Equity securities336 (7)— 38 (3)56 — 420 
Assets of MIE21 (3)— — — — — 18 
Total Level 3 assets$3,521 $— $87 $1,172 $(488)$145 $(921)$3,516 
Embedded derivatives (a)$(2,720)$(643)$— $(276)$170 $— $— $(3,469)
Total Level 3 liabilities (b)
$(2,720)$(643)$— $(276)$170 $— $— $(3,469)
(a)Total realized/unrealized gains (losses) included in net earnings for the embedded derivatives reflects a favorable adjustment related to the unlocking of actuarial assumptions of $240 million in the first nine months of 2020 compared to $181 million in the first nine months of 2019.
(b)As previously discussed, these tables exclude the portion of MIE liabilities allocated to Level 3, which are derived from the fair value of the MIE assets.
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):
CarryingFair Value
ValueTotalLevel 1Level 2Level 3
September 30, 2020
Financial assets:
Cash and cash equivalents$3,747 $3,747 $3,747 $— $— 
Mortgage loans1,482 1,507 — — 1,507 
Policy loans154 154 — — 154 
Total financial assets not accounted for at fair value
$5,383 $5,408 $3,747 $— $1,661 
Financial liabilities:
Annuity benefits accumulated (*)$41,082 $42,938 $— $— $42,938 
Long-term debt2,108 2,397 — 2,394 3 
Total financial liabilities not accounted for at fair value
$43,190 $45,335 $— $2,394 $42,941 
December 31, 2019
Financial assets:
Cash and cash equivalents$2,314 $2,314 $2,314 $— $— 
Mortgage loans1,329 1,346 — — 1,346 
Policy loans164 164 — — 164 
Total financial assets not accounted for at fair value
$3,807 $3,824 $2,314 $— $1,510 
Financial liabilities:
Annuity benefits accumulated (*)$40,159 $40,182 $— $— $40,182 
Long-term debt1,473 1,622 — 1,619 3 
Total financial liabilities not accounted for at fair value
$41,632 $41,804 $— $1,619 $40,185 
(*)Excludes $850 million and $247 million of life contingent annuities in the payout phase at September 30, 2020 and December 31, 2019, respectively.