Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2021

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
December 31, 2021
Assets:
Available for sale (“AFS”) 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 (“MIE”)	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

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 asset balances of Level 3 financial assets

Changes in balances of Level 3 financial assets and liabilities carried at fair value during 2021, 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 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 December 31, 2021
AFS fixed maturities:
U.S. government agency	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
State and municipal	39		—		—		—		(4)		8		(2)		—		41
Residential MBS	38		(4)		—		6		(3)		6		(29)		—		14
Commercial MBS	2		—		—		—		—		—		(2)		—		—
Collateralized loan obligations	16		1		—		—		(2)		—		(15)		—		—
Other asset-backed securities	305		1		—		154		(156)		14		(40)		—		278
Corporate and other	138		(1)		(5)		184		(45)		5		(9)		—		267
Total AFS fixed maturities	538		(3)		(5)		344		(210)		33		(97)		—		600
Equity securities	176		99		—		78		(28)		—		(12)		—		313
Assets of MIE	21		—		—		5		—		1		(14)		—		13
Assets of discontinued annuity operations	2,971		85		(22)		209		(327)		32		(229)		(2,719)		—
Total Level 3 assets	$	3,706	$	181	$	(27)	$	636	$	(565)	$	66	$	(352)	$	(2,719)	$	926

Contingent consideration — acquisitions	$	—	$	—	$	—	$	(23)	$	—	$	—	$	—	$	—	$	(23)
Liabilities of discontinued annuity operations	(3,933)		(223)		—		(146)		159		—		—		4,143		—
Total Level 3 liabilities	$	(3,933)	$	(223)	$	—	$	(169)	$	159	$	—	$	—	$	4,143	$	(23)


			Total realized/unrealized gains (losses) included in
	Balance at December 31, 2019		Net earnings (loss)		OCI		Purchases and issuances		Sales and settlements		Transfer into Level 3		Transfer out of Level 3		Balance at December 31, 2020
AFS fixed maturities:
U.S. government agency	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
State and municipal	40		—		1		—		(2)		—		—		39
Residential MBS	45		(1)		(1)		—		(6)		9		(8)		38
Commercial MBS	6		—		—		—		—		1		(5)		2
Collateralized loan obligations	1		—		5		—		—		52		(42)		16
Other asset-backed securities	256		(7)		5		106		(89)		42		(8)		305
Corporate and other	223		1		—		68		(60)		4		(98)		138
Total AFS fixed maturities	571		(7)		10		174		(157)		108		(161)		538
Equity securities	161		(12)		—		37		(7)		9		(12)		176
Assets of MIE	17		(6)		—		2		—		8		—		21
Assets of discontinued annuity operations	3,092		(17)		59		568		(442)		495		(784)		2,971
Total Level 3 assets	$	3,841	$	(42)	$	69	$	781	$	(606)	$	620	$	(957)	$	3,706

Liabilities of discontinued annuity operations	$	(3,730)	$	(283)	$	—	$	(242)	$	322	$	—	$	—	$	(3,933)
Total Level 3 liabilities	$	(3,730)	$	(283)	$	—	$	(242)	$	322	$	—	$	—	$	(3,933)


			Total realized/unrealized gains (losses) included in
	Balance at December 31, 2018		Net earnings (loss)		OCI		Purchases and issuances		Sales and settlements		Transfer into Level 3		Transfer out of Level 3		Balance at December 31, 2019
AFS fixed maturities:
U.S. government agency	$	1	$	—	$	—	$	—	$	(1)	$	—	$	—	$	—
State and municipal	—		—		(1)		—		—		45		(4)		40
Residential MBS	37		3		(1)		—		(3)		12		(3)		45
Commercial MBS	8		1		—		—		—		—		(3)		6
Collateralized loan obligations	31		(1)		2		—		—		3		(34)		1
Other asset-backed securities	188		—		—		157		(43)		—		(46)		256
Corporate and other	277		(2)		3		166		(84)		1		(138)		223
Total AFS fixed maturities	542		1		3		323		(131)		61		(228)		571
Equity securities	124		(6)		—		19		(1)		25		—		161
Assets of MIE	21		(5)		—		1		—		—		—		17
Assets of discontinued annuity operations	2,834		—		72		1,235		(433)		158		(774)		3,092
Total Level 3 assets	$	3,521	$	(10)	$	75	$	1,578	$	(565)	$	244	$	(1,002)	$	3,841

Liabilities of discontinued annuity operations	$	(2,720)	$	(919)	$	—	$	(333)	$	242	$	—	$	—	$	(3,730)
Total Level 3 liabilities	$	(2,720)	$	(919)	$	—	$	(333)	$	242	$	—	$	—	$	(3,730)

Changes in liability balances of Level 3 financial liabilities


			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 December 31, 2021
AFS fixed maturities:
U.S. government agency	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
State and municipal	39		—		—		—		(4)		8		(2)		—		41
Residential MBS	38		(4)		—		6		(3)		6		(29)		—		14
Commercial MBS	2		—		—		—		—		—		(2)		—		—
Collateralized loan obligations	16		1		—		—		(2)		—		(15)		—		—
Other asset-backed securities	305		1		—		154		(156)		14		(40)		—		278
Corporate and other	138		(1)		(5)		184		(45)		5		(9)		—		267
Total AFS fixed maturities	538		(3)		(5)		344		(210)		33		(97)		—		600
Equity securities	176		99		—		78		(28)		—		(12)		—		313
Assets of MIE	21		—		—		5		—		1		(14)		—		13
Assets of discontinued annuity operations	2,971		85		(22)		209		(327)		32		(229)		(2,719)		—
Total Level 3 assets	$	3,706	$	181	$	(27)	$	636	$	(565)	$	66	$	(352)	$	(2,719)	$	926

Contingent consideration — acquisitions	$	—	$	—	$	—	$	(23)	$	—	$	—	$	—	$	—	$	(23)
Liabilities of discontinued annuity operations	(3,933)		(223)		—		(146)		159		—		—		4,143		—
Total Level 3 liabilities	$	(3,933)	$	(223)	$	—	$	(169)	$	159	$	—	$	—	$	4,143	$	(23)


			Total realized/unrealized gains (losses) included in
	Balance at December 31, 2019		Net earnings (loss)		OCI		Purchases and issuances		Sales and settlements		Transfer into Level 3		Transfer out of Level 3		Balance at December 31, 2020
AFS fixed maturities:
U.S. government agency	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
State and municipal	40		—		1		—		(2)		—		—		39
Residential MBS	45		(1)		(1)		—		(6)		9		(8)		38
Commercial MBS	6		—		—		—		—		1		(5)		2
Collateralized loan obligations	1		—		5		—		—		52		(42)		16
Other asset-backed securities	256		(7)		5		106		(89)		42		(8)		305
Corporate and other	223		1		—		68		(60)		4		(98)		138
Total AFS fixed maturities	571		(7)		10		174		(157)		108		(161)		538
Equity securities	161		(12)		—		37		(7)		9		(12)		176
Assets of MIE	17		(6)		—		2		—		8		—		21
Assets of discontinued annuity operations	3,092		(17)		59		568		(442)		495		(784)		2,971
Total Level 3 assets	$	3,841	$	(42)	$	69	$	781	$	(606)	$	620	$	(957)	$	3,706

Liabilities of discontinued annuity operations	$	(3,730)	$	(283)	$	—	$	(242)	$	322	$	—	$	—	$	(3,933)
Total Level 3 liabilities	$	(3,730)	$	(283)	$	—	$	(242)	$	322	$	—	$	—	$	(3,933)


			Total realized/unrealized gains (losses) included in
	Balance at December 31, 2018		Net earnings (loss)		OCI		Purchases and issuances		Sales and settlements		Transfer into Level 3		Transfer out of Level 3		Balance at December 31, 2019
AFS fixed maturities:
U.S. government agency	$	1	$	—	$	—	$	—	$	(1)	$	—	$	—	$	—
State and municipal	—		—		(1)		—		—		45		(4)		40
Residential MBS	37		3		(1)		—		(3)		12		(3)		45
Commercial MBS	8		1		—		—		—		—		(3)		6
Collateralized loan obligations	31		(1)		2		—		—		3		(34)		1
Other asset-backed securities	188		—		—		157		(43)		—		(46)		256
Corporate and other	277		(2)		3		166		(84)		1		(138)		223
Total AFS fixed maturities	542		1		3		323		(131)		61		(228)		571
Equity securities	124		(6)		—		19		(1)		25		—		161
Assets of MIE	21		(5)		—		1		—		—		—		17
Assets of discontinued annuity operations	2,834		—		72		1,235		(433)		158		(774)		3,092
Total Level 3 assets	$	3,521	$	(10)	$	75	$	1,578	$	(565)	$	244	$	(1,002)	$	3,841

Liabilities of discontinued annuity operations	$	(2,720)	$	(919)	$	—	$	(333)	$	242	$	—	$	—	$	(3,730)
Total Level 3 liabilities	$	(2,720)	$	(919)	$	—	$	(333)	$	242	$	—	$	—	$	(3,730)

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 at December 31 are summarized below (in millions):


	Carrying		Fair Value
	Value		Total		Level 1		Level 2		Level 3
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

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