Fair Value Measurements (Tables)

9 Months Ended

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