Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2022

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
December 31, 2022
Assets:
Available for sale (“AFS”) fixed maturities:
U.S. Government and government agencies	$	219	$	—	$	—	$	219
States, municipalities and political subdivisions	—		1,181		5		1,186
Foreign government	—		226		—		226
Residential MBS	—		1,589		9		1,598
Commercial MBS	—		85		—		85
Collateralized loan obligations	—		1,919		2		1,921
Other asset-backed securities	—		1,916		329		2,245
Corporate and other	8		2,288		319		2,615
Total AFS fixed maturities	227		9,204		664		10,095
Trading fixed maturities	—		32		—		32
Equity securities	556		27		427		1,010
Assets of managed investment entities (“MIE”)	659		4,777		11		5,447
Total assets accounted for at fair value	$	1,442	$	14,040	$	1,102	$	16,584
Liabilities:
Contingent consideration — acquisitions	$	—	$	—	$	25	$	25
Liabilities of managed investment entities	645		4,676		11		5,332
Other liabilities — derivatives	—		42		—		42
Total liabilities accounted for at fair value	$	645	$	4,718	$	36	$	5,399

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 asset balances of Level 3 financial assets

Changes in balances of Level 3 financial assets and liabilities carried at fair value during 2022, 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, 2021		Net earnings (loss)		Other comprehensive income (loss)		Purchases and issuances		Sales and settlements		Transfer into Level 3		Transfer out of Level 3		Balance at December 31, 2022
AFS fixed maturities:
U.S. government agency	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
State and municipal	41		—		(3)		—		(1)		4		(36)		5
Residential MBS	14		—		(1)		—		(1)		7		(10)		9
Commercial MBS	—		—		—		—		—		—		—		—
Collateralized loan obligations	—		—		—		—		—		2		—		2
Other asset-backed securities	278		1		(27)		94		(52)		35		—		329
Corporate and other	267		(1)		(22)		129		(39)		20		(35)		319
Total AFS fixed maturities	600		—		(53)		223		(93)		68		(81)		664
Equity securities	313		29		—		112		(24)		4		(7)		427
Assets of MIE	13		(5)		—		3		—		—		—		11
Total Level 3 assets	$	926	$	24	$	(53)	$	338	$	(117)	$	72	$	(88)	$	1,102

Contingent consideration — acquisitions	$	(23)	$	—	$	—	$	(2)	$	—	$	—	$	—	$	(25)
Total Level 3 liabilities	$	(23)	$	—	$	—	$	(2)	$	—	$	—	$	—	$	(25)


			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)		Other comprehensive income (loss)		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)

Changes in liability balances of Level 3 financial liabilities


			Total realized/unrealized gains (losses) included in
	Balance at December 31, 2021		Net earnings (loss)		Other comprehensive income (loss)		Purchases and issuances		Sales and settlements		Transfer into Level 3		Transfer out of Level 3		Balance at December 31, 2022
AFS fixed maturities:
U.S. government agency	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
State and municipal	41		—		(3)		—		(1)		4		(36)		5
Residential MBS	14		—		(1)		—		(1)		7		(10)		9
Commercial MBS	—		—		—		—		—		—		—		—
Collateralized loan obligations	—		—		—		—		—		2		—		2
Other asset-backed securities	278		1		(27)		94		(52)		35		—		329
Corporate and other	267		(1)		(22)		129		(39)		20		(35)		319
Total AFS fixed maturities	600		—		(53)		223		(93)		68		(81)		664
Equity securities	313		29		—		112		(24)		4		(7)		427
Assets of MIE	13		(5)		—		3		—		—		—		11
Total Level 3 assets	$	926	$	24	$	(53)	$	338	$	(117)	$	72	$	(88)	$	1,102

Contingent consideration — acquisitions	$	(23)	$	—	$	—	$	(2)	$	—	$	—	$	—	$	(25)
Total Level 3 liabilities	$	(23)	$	—	$	—	$	(2)	$	—	$	—	$	—	$	(25)


			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)		Other comprehensive income (loss)		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)

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
2022
Financial assets:
Cash and cash equivalents	$	872	$	872	$	872	$	—	$	—
Mortgage loans	676		626		—		—		626
Total financial assets not accounted for at fair value	$	1,548	$	1,498	$	872	$	—	$	626

Long-term debt	$	1,496	$	1,302	$	—	$	1,299	$	3
Total financial liabilities not accounted for at fair value	$	1,496	$	1,302	$	—	$	1,299	$	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