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Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 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 1Level 2Level 3Total
March 31, 2021
Assets:
Available for sale (“AFS”) fixed maturities:
U.S. Government and government agencies$212 $3 $— $215 
States, municipalities and political subdivisions— 2,128 39 2,167 
Foreign government— 190 — 190 
Residential MBS— 820 27 847 
Commercial MBS— 109 — 109 
Collateralized loan obligations— 1,125 6 1,131 
Other asset-backed securities— 1,862 326 2,188 
Corporate and other4 2,234 204 2,442 
Total AFS fixed maturities216 8,471 602 9,289 
Trading fixed maturities— 26 — 26 
Equity securities670 47 227 944 
Assets of managed investment entities (“MIE”)288 4,800 14 5,102 
Total assets of continuing operations accounted for at fair value$1,174 $13,344 $843 $15,361 
Liabilities:
Liabilities of managed investment entities$285 $4,746 $14 $5,045 
Total liabilities of continuing operations accounted for at fair value$285 $4,746 $14 $5,045 
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 other4 2,140 138 2,282 
Total AFS fixed maturities199 8,347 538 9,084 
Trading fixed maturities— 24 — 24 
Equity securities665 48 176 889 
Assets of managed investment entities217 4,733 21 4,971 
Total assets of continuing operations 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 of continuing operations accounted for at fair value$215 $4,678 $21 $4,914 
Assets and liabilities of discontinued annuity operations that are measured and carried at fair value in the financial statements are summarized below (in millions):
Level 1Level 2Level 3Total
March 31, 2021
Assets:
Available for sale fixed maturities:
U.S. Government and government agencies$6 $21 $15 $42 
States, municipalities and political subdivisions— 3,156 60 3,216 
Foreign government— 34 — 34 
Residential MBS— 2,431 82 2,513 
Commercial MBS— 635 1 636 
Collateralized loan obligations— 3,762 26 3,788 
Other asset-backed securities— 4,277 927 5,204 
Corporate and other30 17,914 1,377 19,321 
Total AFS fixed maturities36 32,230 2,488 34,754 
Trading fixed maturities— 40 — 40 
Equity securities258 48 318 624 
Equity index call options— 813 — 813 
Variable annuity assets (separate accounts) (*)— 666 — 666 
Other assets — derivatives— 69 — 69 
Total assets of discontinued annuity operations accounted for at fair value$294 $33,866 $2,806 $36,966 
Liabilities:
Derivatives in annuity benefits accumulated$— $— $3,954 $3,954 
Other liabilities — derivatives— 10 — 10 
Total liabilities of discontinued annuity operations accounted for at fair value$— $10 $3,954 $3,964 
(*)Variable annuity liabilities equal the fair value of variable annuity assets.
Level 1Level 2Level 3Total
December 31, 2020
Assets:
Available for sale fixed maturities:
U.S. Government and government agencies$6 $23 $15 $44 
States, municipalities and political subdivisions— 3,357 64 3,421 
Foreign government— 35 — 35 
Residential MBS— 2,013 127 2,140 
Commercial MBS— 687 11 698 
Collateralized loan obligations— 3,443 48 3,491 
Other asset-backed securities— 4,108 1,068 5,176 
Corporate and other40 17,733 1,345 19,118 
Total AFS fixed maturities46 31,399 2,678 34,123 
Trading fixed maturities— 42 — 42 
Equity securities431 50 293 774 
Equity index call options— 825 — 825 
Variable annuity assets (separate accounts) (*)— 664 — 664 
Other assets — derivatives— 102 — 102 
Total assets of discontinued annuity operations accounted for at fair value$477 $33,082 $2,971 $36,530 
Liabilities:
Derivatives in annuity benefits accumulated$— $— $3,933 $3,933 
Other liabilities — derivatives— 10 — 10 
Total liabilities of discontinued annuity operations accounted for at fair value$— $10 $3,933 $3,943 
(*)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 G — “Derivatives.”
Unobservable InputRange
Adjustment for insurance subsidiary’s credit risk
0% – 2.1% over the risk-free rate
Risk margin for uncertainty in cash flows
0.99% reduction in the discount rate
Surrenders
7% – 22% of indexed account value
Partial surrenders
2% – 11% of indexed account value
Annuitizations
0.1% – 1% of indexed account value
Deaths
2.0% – 13.6% of indexed account value
Budgeted option costs
2.2% – 2.9% 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 first three 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 December 31, 2020Net
earnings (loss)		Other
comprehensive
income (loss)		Purchases
and
issuances		Sales and
settlements		Transfer
into
Level 3		Transfer
out of
Level 3		Balance at March 31, 2021
AFS fixed maturities:
U.S. government agency
$— $— $— $— $— $— $— $— 
State and municipal39 — — — — — — 39 
Residential MBS38 (3)— 6 — 3 (17)27 
Commercial MBS2 — — — — — (2)— 
Collateralized loan obligations16 1 (1)— (1)— (9)6 
Other asset-backed securities
305 — — 52 (23)14 (22)326 
Corporate and other138 1 (1)84 (18)2 (2)204 
Total AFS fixed maturities538 (1)(2)142 (42)19 (52)602 
Equity securities176 53 — 12 (14)— — 227 
Assets of MIE21 4 — 1 — — (12)14 
Assets of discontinued annuity operations2,971 70 (43)196 (191)32 (229)2,806 
Total Level 3 assets$3,706 $126 $(45)$351 $(247)$51 $(293)$3,649 
Liabilities of discontinued annuity operations$(3,933)$(40)$— $(74)$93 $— $— $(3,954)
Total Level 3 liabilities (*)$(3,933)$(40)$— $(74)$93 $— $— $(3,954)

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 March 31, 2020
AFS fixed maturities:
U.S. government agency
$— $— $— $— $— $— $— $— 
State and municipal40 — 1 — — — — 41 
Residential MBS45 1 (2)— (1)1 — 44 
Commercial MBS6 — — — — — — 6 
Collateralized loan obligations1 — — — — 43 — 44 
Other asset-backed securities
256 (6)— 22 (41)7 — 238 
Corporate and other223 (1)(3)24 (7)2 (66)172 
Total AFS fixed maturities
571 (6)(4)46 (49)53 (66)545 
Equity securities161 (18)— 3 — 9 — 155 
Assets of MIE17 (1)— — — — — 16 
Assets of discontinued annuity operations3,092 (18)(44)153 (174)133 (345)2,797 
Total Level 3 assets$3,841 $(43)$(48)$202 $(223)$195 $(411)$3,513 
Liabilities of discontinued annuity operations$(3,730)$647 $— $(78)$62 $— $— $(3,099)
Total Level 3 liabilities (*)$(3,730)$647 $— $(78)$62 $— $— $(3,099)
(*)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 first three 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 December 31, 2020Net
earnings (loss)		Other
comprehensive
income (loss)		Purchases
and
issuances		Sales and
settlements		Transfer
into
Level 3		Transfer
out of
Level 3		Balance at March 31, 2021
AFS fixed maturities:
U.S. government agency
$— $— $— $— $— $— $— $— 
State and municipal39 — — — — — — 39 
Residential MBS38 (3)— 6 — 3 (17)27 
Commercial MBS2 — — — — — (2)— 
Collateralized loan obligations16 1 (1)— (1)— (9)6 
Other asset-backed securities
305 — — 52 (23)14 (22)326 
Corporate and other138 1 (1)84 (18)2 (2)204 
Total AFS fixed maturities538 (1)(2)142 (42)19 (52)602 
Equity securities176 53 — 12 (14)— — 227 
Assets of MIE21 4 — 1 — — (12)14 
Assets of discontinued annuity operations2,971 70 (43)196 (191)32 (229)2,806 
Total Level 3 assets$3,706 $126 $(45)$351 $(247)$51 $(293)$3,649 
Liabilities of discontinued annuity operations$(3,933)$(40)$— $(74)$93 $— $— $(3,954)
Total Level 3 liabilities (*)$(3,933)$(40)$— $(74)$93 $— $— $(3,954)

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 March 31, 2020
AFS fixed maturities:
U.S. government agency
$— $— $— $— $— $— $— $— 
State and municipal40 — 1 — — — — 41 
Residential MBS45 1 (2)— (1)1 — 44 
Commercial MBS6 — — — — — — 6 
Collateralized loan obligations1 — — — — 43 — 44 
Other asset-backed securities
256 (6)— 22 (41)7 — 238 
Corporate and other223 (1)(3)24 (7)2 (66)172 
Total AFS fixed maturities
571 (6)(4)46 (49)53 (66)545 
Equity securities161 (18)— 3 — 9 — 155 
Assets of MIE17 (1)— — — — — 16 
Assets of discontinued annuity operations3,092 (18)(44)153 (174)133 (345)2,797 
Total Level 3 assets$3,841 $(43)$(48)$202 $(223)$195 $(411)$3,513 
Liabilities of discontinued annuity operations$(3,730)$647 $— $(78)$62 $— $— $(3,099)
Total Level 3 liabilities (*)$(3,730)$647 $— $(78)$62 $— $— $(3,099)
(*)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 of continuing operations that are not carried at fair value in the financial statements are summarized below (in millions):
CarryingFair Value
ValueTotalLevel 1Level 2Level 3
March 31, 2021
Financial assets:
Cash and cash equivalents$1,691 $1,691 $1,691 $— $— 
Mortgage loans408 411 — — 411 
Total financial assets not accounted for at fair value
$2,099 $2,102 $1,691 $— $411 
Long-term debt$1,963 $2,218 $— $2,215 $3 
Total financial liabilities not accounted for at fair value
$1,963 $2,218 $— $2,215 $3 
December 31, 2020
Financial assets:
Cash and cash equivalents$1,665 $1,665 $1,665 $— $— 
Mortgage loans377 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 

The carrying value and fair value of financial instruments of the discontinued annuity operations that are not carried at fair value in the financial statements are summarized below (in millions):
CarryingFair Value
ValueTotalLevel 1Level 2Level 3
March 31, 2021
Financial assets:
Cash and cash equivalents$636 $636 $636 $— $— 
Mortgage loans1,244 1,262 — — 1,262 
Policy loans148 148 — — 148 
Total financial assets not accounted for at fair value
$2,028 $2,046 $636 $— $1,410 
Annuity benefits accumulated (*)$41,760 $42,360 $— $— $42,360 
Total financial liabilities not accounted for at fair value
$41,760 $42,360 $— $— $42,360 
December 31, 2020
Financial assets:
Cash and cash equivalents$1,145 $1,145 $1,145 $— $— 
Mortgage loans1,251 1,270 — — 1,270 
Policy loans151 151 — — 151 
Total financial assets not accounted for at fair value
$2,547 $2,566 $1,145 $— $1,421 
Annuity benefits accumulated (*)$41,460 $43,081 $— $— $43,081 
Total financial liabilities not accounted for at fair value
$41,460 $43,081 $— $— $43,081 
(*)Excludes $1.12 billion and $1.11 billion of life contingent annuities in the payout phase at March 31, 2021 and December 31, 2020, respectively.