Fair Value (Tables)

9 Months Ended

Sep. 30, 2019

Fair Value Measurements By Level For Assets Measured At Fair Value On A Recurring Basis

A summary of fair value measurements by level for assets and liabilities measured at fair value on a recurring basis at September 30, 2019 and December 31, 2018 is as follows:



	Level I		Level II			Level III		Total
September 30, 2019
Assets:
Cash equivalents	$	1,258	$	—		$	—	$	1,258
Fixed maturity securities, available-for-sale:
United States Government securities	—		497			—		497
Government sponsored securities	—		131			—		131
States, municipalities and political subdivisions	—		4,742			—		4,742
Corporate securities	—		9,028			311		9,339
Residential mortgage-backed securities	—		4,014			3		4,017
Commercial mortgage-backed securities	—		90			—		90
Other securities	—		1,651			11		1,662
Total fixed maturity securities, available-for-sale	—		20,153			325		20,478
Equity securities:
Exchange traded funds	563		—			—		563
Fixed maturity mutual funds	—		631			—		631
Common equity securities	796		33			—		829
Private equity securities	—		—			306		306
Total equity securities	1,359		664			306		2,329
Other invested assets, current	10		—			—		10
Securities lending collateral	—		465			—		465
Derivatives	—		25			—		25
Total assets	$	2,627	$	21,307		$	631	$	24,565
Liabilities:
Derivatives	$	—	$	(1	)	$	—	$	(1	)
Total liabilities	$	—	$	(1	)	$	—	$	(1	)

December 31, 2018
Assets:
Cash equivalents	$	1,815	$	—		$	—	$	1,815
Fixed maturity securities, available-for-sale:
United States Government securities	—		416			—		416
Government sponsored securities	—		108			—		108
States, municipalities and political subdivisions	—		4,785			—		4,785
Corporate securities	2		7,648			287		7,937
Residential mortgage-backed securities	—		2,744			6		2,750
Commercial mortgage-backed securities	—		67			—		67
Other securities	—		1,099			17		1,116
Total fixed maturity securities, available-for-sale	2		16,867			310		17,179
Equity securities:
Exchange traded funds	2		—			—		2
Fixed maturity mutual funds	—		557			—		557
Common equity securities	601		53			—		654
Private equity securities	—		—			313		313
Total equity securities	603		610			313		1,526
Other invested assets, current	21		—			—		21
Securities lending collateral	314		290			—		604
Derivatives	—		16			—		16
Total assets	$	2,755	$	17,783		$	623	$	21,161
Liabilities:
Derivatives	$	—	$	(17	)	$	—	$	(17	)
Total liabilities	$	—	$	(17	)	$	—	$	(17	)

Reconciliation Of The Beginning And Ending Balances Of Assets Measured At Fair Value On A Recurring Basis Using Level III Inputs

A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using Level III inputs for the three months ended September 30, 2019 and 2018 is as follows:



	Corporate Securities			Residential Mortgage- backed Securities		Other Securities			Equity Securities			Total
Three Months Ended September 30, 2019
Beginning balance at July 1, 2019	$	297		$	3	$	11		$	305		$	616
Total gains (losses):
Recognized in net income	(3		)	—		—			(5		)	(8		)
Recognized in accumulated other comprehensive loss	12			—		—			—			12
Purchases	28			—		—			25			53
Sales	(9		)	—		—			(19		)	(28		)
Settlements	(18		)	—		—			—			(18		)
Transfers into Level III	4			—		—			—			4
Transfers out of Level III	—			—		—			—			—
Ending balance at September 30, 2019	$	311		$	3	$	11		$	306		$	631
Change in unrealized losses included in net income related to assets still held at September 30, 2019	$	—		$	—	$	—		$	(4	)	$	(4	)

Three Months Ended September 30, 2018
Beginning balance at July 1, 2018	$	304		$	4	$	26		$	312		$	646
Total gains (losses):
Recognized in net income	—			—		—			4			4
Recognized in accumulated other comprehensive loss	(1		)	—		—			—			(1		)
Purchases	32			—		3			5			40
Sales	(2		)	—		—			(3		)	(5		)
Settlements	(30		)	—		—			—			(30		)
Transfers into Level III	6			—		1			—			7
Transfers out of Level III	(2		)	—		(13		)	—			(15		)
Ending balance at September 30, 2018	$	307		$	4	$	17		$	318		$	646
Change in unrealized gains included in net income related to assets still held at September 30, 2018	$	—		$	—	$	—		$	9		$	9

A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using Level III inputs for the nine months ended September 30, 2019 and 2018 is as follows:



	Corporate Securities			Residential Mortgage- backed Securities			Other Securities			Equity Securities			Total
Nine Months Ended September 30, 2019
Beginning balance at January 1, 2019	$	287		$	6		$	17		$	313		$	623
Total (losses) gains:
Recognized in net income	(7		)	—			—			(5		)	(12		)
Recognized in accumulated other comprehensive loss	14			—			—			—			14
Purchases	91			—			2			46			139
Sales	(11		)	—			—			(48		)	(59		)
Settlements	(58		)	(1		)	(2		)	—			(61		)
Transfers into Level III	4			—			3			—			7
Transfers out of Level III	(9		)	(2		)	(9		)	—			(20		)
Ending balance at September 30, 2019	$	311		$	3		$	11		$	306		$	631
Change in unrealized losses included in net income related to assets still held at September 30, 2019	$	—		$	—		$	—		$	(4	)	$	(4	)

Nine Months Ended September 30, 2018
Beginning balance at January 1, 2018	$	229		$	5		$	16		$	287		$	537
Total (losses) gains:
Recognized in net income	1			—			—			(228		)	(227		)
Recognized in accumulated other comprehensive loss	(3		)	—			—			—			(3		)
Purchases	94			—			12			263			369
Sales	(17		)	—			—			(4		)	(21		)
Settlements	(60		)	(1		)	(1		)	—			(62		)
Transfers into Level III	65			—			5			—			70
Transfers out of Level III	(2		)	—			(15		)	—			(17		)
Ending balance at September 30, 2018	$	307		$	4		$	17		$	318		$	646
Change in unrealized gains included in net income related to assets still held at September 30, 2018	$	—		$	—		$	—		$	27		$	27

Carrying And Fair Values By Level Of Financial Instruments Not Recorded At Fair Value On Consolidated Balance Sheet

A summary of the estimated fair values by level of each class of financial instrument that is recorded at its carrying value on our consolidated balance sheets at September 30, 2019 and December 31, 2018 is as follows:



	Carrying Value		Estimated Fair Value
			Level I		Level II		Level III		Total
September 30, 2019
Assets:
Other invested assets, long-term	$	3,914	$	—	$	—	$	3,914	$	3,914
Liabilities:
Debt:
Short-term borrowings	710		—		710		—		710
Commercial paper	500		—		500		—		500
Notes	18,841		—		20,198		—		20,198
Convertible debentures	179		—		893		—		893

December 31, 2018
Assets:
Other invested assets, long-term	$	3,726	$	—	$	—	$	3,726	$	3,726
Liabilities:
Debt:
Short-term borrowings	1,145		—		1,145		—		1,145
Commercial paper	697		—		697		—		697
Notes	17,178		—		17,145		—		17,145
Convertible debentures	191		—		1,030		—		1,030