Investments (Tables)
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9 Months Ended |
Sep. 30, 2021 |
Investments [Abstract] |
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Current and Long-Term Investments, Available-For-Sale |
A summary of current and long-term fixed maturity securities, available-for-sale, at September 30, 2021 and December 31, 2020 is as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Cost or Amortized Cost | | | | | | | | | | Non-Credit Component of Impairment Recognized in Accumulated Other Comprehensive (Loss) Income | | | Gross Unrealized Gains | | Gross Unrealized Losses | | Allowance For Credit Losses | | Estimated Fair Value | | | | | Less than 12 Months | | 12 Months or Greater | | | | September 30, 2021 | | | | | | | | | | | | | | Fixed maturity securities: | | | | | | | | | | | | | | United States Government securities | $ | 1,259 | | | $ | 6 | | | $ | (8) | | | $ | (4) | | | $ | — | | | $ | 1,253 | | | $ | — | | Government sponsored securities | 55 | | | 4 | | | — | | | — | | | — | | | 59 | | | — | | Foreign government securities | 346 | | | 7 | | | (7) | | | (2) | | | — | | | 344 | | | — | | States, municipalities and political subdivisions | 5,231 | | | 319 | | | (6) | | | (1) | | | — | | | 5,543 | | | — | | Corporate securities | 12,118 | | | 509 | | | (38) | | | (11) | | | (4) | | | 12,574 | | | (1) | | | | | | | | | | | | | | | | Residential mortgage-backed securities | 4,224 | | | 108 | | | (13) | | | (7) | | | (2) | | | 4,310 | | | — | | Commercial mortgage-backed securities | 66 | | | 2 | | | — | | | (3) | | | — | | | 65 | | | — | | Other securities | 2,802 | | | 31 | | | (3) | | | (5) | | | — | | | 2,825 | | | — | | Total fixed maturity securities | $ | 26,101 | | | $ | 986 | | | $ | (75) | | | $ | (33) | | | $ | (6) | | | $ | 26,973 | | | $ | (1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2020 | | | | | | | | | | | | | | Fixed maturity securities: | | | | | | | | | | | | | | United States Government securities | $ | 765 | | | $ | 11 | | | $ | (2) | | | $ | — | | | $ | — | | | $ | 774 | | | $ | — | | Government sponsored securities | 63 | | | 6 | | | — | | | — | | | — | | | 69 | | | — | | Foreign government securities | 290 | | | 17 | | | (2) | | | — | | | — | | | 305 | | | — | | States, municipalities and political subdivisions | 5,185 | | | 395 | | | (1) | | | — | | | — | | | 5,579 | | | — | | Corporate securities | 10,233 | | | 697 | | | (20) | | | (11) | | | (7) | | | 10,892 | | | (1) | | | | | | | | | | | | | | | | Residential mortgage-backed securities | 4,208 | | | 154 | | | (8) | | | (9) | | | — | | | 4,345 | | | (2) | | Commercial mortgage-backed securities | 73 | | | 3 | | | (1) | | | (3) | | | — | | | 72 | | | — | | Other securities | 1,937 | | | 33 | | | (5) | | | (6) | | | — | | | 1,959 | | | — | | Total fixed maturity securities | $ | 22,754 | | | $ | 1,316 | | | $ | (39) | | | $ | (29) | | | $ | (7) | | | $ | 23,995 | | | $ | (3) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Aggregate Fair Value and Gross Unrealized Loss of Fixed Maturity Securities in an Unrealized Loss Position |
For fixed maturity securities in an unrealized loss position at September 30, 2021 and December 31, 2020, the following table summarizes the aggregate fair values and gross unrealized losses by length of time those securities have continuously been in an unrealized loss position: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Less than 12 Months | | 12 Months or Greater | (Securities are whole amounts) | Number of Securities | | Estimated Fair Value | | Gross Unrealized Loss | | Number of Securities | | Estimated Fair Value | | Gross Unrealized Loss | September 30, 2021 | | | | | | | | | | | | Fixed maturity securities: | | | | | | | | | | | | United States Government securities | 62 | | | $ | 702 | | | $ | (8) | | | 17 | | | $ | 141 | | | $ | (4) | | Government sponsored securities | 1 | | | 1 | | | — | | | — | | | — | | | — | | Foreign government securities | 191 | | | 155 | | | (7) | | | 22 | | | 10 | | | (2) | | States, municipalities and political subdivisions | 254 | | | 516 | | | (6) | | | 4 | | | 11 | | | (1) | | Corporate securities | 1,478 | | | 2,321 | | | (38) | | | 225 | | | 273 | | | (11) | | Residential mortgage-backed securities | 418 | | | 1,430 | | | (13) | | | 101 | | | 108 | | | (7) | | Commercial mortgage-backed securities | 1 | | | 1 | | | — | | | 4 | | | 7 | | | (3) | | Other securities | 255 | | | 720 | | | (3) | | | 53 | | | 110 | | | (5) | | Total fixed maturity securities | 2,660 | | | $ | 5,846 | | | $ | (75) | | | 426 | | | $ | 660 | | | $ | (33) | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2020 | | | | | | | | | | | | Fixed maturity securities: | | | | | | | | | | | | United States Government securities | 27 | | | $ | 301 | | | $ | (2) | | | — | | | $ | — | | | $ | — | | Government sponsored securities | — | | | — | | | — | | | 1 | | | — | | | — | | Foreign government securities | 55 | | | 35 | | | (2) | | | 9 | | | 4 | | | — | | States, municipalities and political subdivisions | 36 | | | 57 | | | (1) | | | 1 | | | 3 | | | — | | Corporate securities | 646 | | | 765 | | | (20) | | | 150 | | | 169 | | | (11) | | Residential mortgage-backed securities | 224 | | | 442 | | | (8) | | | 90 | | | 110 | | | (9) | | Commercial mortgage-backed securities | 6 | | | 16 | | | (1) | | | 3 | | | 4 | | | (3) | | Other securities | 207 | | | 509 | | | (5) | | | 79 | | | 179 | | | (6) | | Total fixed maturity securities | 1,201 | | | $ | 2,125 | | | $ | (39) | | | 333 | | | $ | 469 | | | $ | (29) | | | | | | | | | | | | | | | | | | | | | | | | | |
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Fixed Maturity Securities, Available-for-sale, Allowance for Credit Loss |
The table below presents a roll-forward by major security type of the allowance for credit losses on fixed maturity securities available-for-sale held at period end for the three and nine months ended September 30, 2021 and 2020: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2021 | | Nine Months Ended September 30, 2021 | | | Corporate Securities | | Residential mortgage-backed securities | | Total | | Corporate Securities | | Residential mortgage-backed securities | | Total | Allowance for credit losses: | | | | | | | | | | | | | Beginning balance | | $ | 4 | | | $ | 2 | | | $ | 6 | | | $ | 7 | | | $ | — | | | $ | 7 | | Additions for securities for which no previous expected credit losses were recognized | | — | | | — | | | — | | | 1 | | | — | | | 1 | | | | | | | | | | | | | | | Securities sold during the period | | — | | | — | | | — | | | (2) | | | — | | | (2) | | | | | | | | | | | | | | | (Decreases) increases to the allowance for credit losses on securities | | — | | | — | | | — | | | (2) | | | 2 | | | — | | Total allowance for credit losses, ending balance | | $ | 4 | | | $ | 2 | | | $ | 6 | | | $ | 4 | | | $ | 2 | | | $ | 6 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2020 | | Nine Months Ended September 30, 2020 | | | Corporate Securities | | Foreign Government Securities | | Total | | Corporate Securities | | Foreign Government Securities | | Total | Allowance for credit losses: | | | | | | | | | | | | | Beginning balance | | $ | 23 | | | $ | 1 | | | $ | 24 | | | $ | — | | | $ | — | | | $ | — | | Additions for securities for which no previous expected credit losses were recognized | | 1 | | | — | | | 1 | | | 61 | | | 1 | | | 62 | | | | | | | | | | | | | | | Securities sold during the period | | (5) | | | — | | | (5) | | | (13) | | | — | | | (13) | | | | | | | | | | | | | | | Decreases to the allowance for credit losses on securities | | (8) | | | — | | | (8) | | | (37) | | | — | | | (37) | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total allowance for credit losses, ending balance | | $ | 11 | | | $ | 1 | | | $ | 12 | | | $ | 11 | | | $ | 1 | | | $ | 12 | |
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Amortized Cost and Fair Value of Fixed Maturity Securities, By Contractual Maturity |
The amortized cost and fair value of fixed maturity securities at September 30, 2021, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations. | | | | | | | | | | | | | Amortized Cost | | Estimated Fair Value | Due in one year or less | $ | 770 | | | $ | 774 | | Due after one year through five years | 6,599 | | | 6,821 | | Due after five years through ten years | 8,682 | | | 8,948 | | Due after ten years | 5,760 | | | 6,055 | | Mortgage-backed securities | 4,290 | | | 4,375 | | Total fixed maturity securities | $ | 26,101 | | | $ | 26,973 | |
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Proceeds and Realized Gains and Losses from Fixed Maturity Securities |
Proceeds from sales, maturities, calls or redemptions of fixed maturity securities during the three and nine months ended September 30, 2021 and 2020 are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30 | | Nine Months Ended September 30 | | 2021 | | 2020 | | 2021 | | 2020 | Proceeds | $ | 2,620 | | | $ | 4,597 | | | $ | 8,570 | | | $ | 9,146 | |
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Investments In Equity Securities |
A summary of marketable equity securities at September 30, 2021 and December 31, 2020 is as follows: | | | | | | | | | | | | | | | | | | | | | September 30, 2021 | | December 31, 2020 | Equity securities: | | | | | | | | Exchange traded funds | | | | | $ | 1,941 | | | $ | 1,154 | | Fixed maturity mutual funds | | | | | — | | | 144 | | Common equity securities | | | | | 94 | | | 201 | | Private equity securities | | | | | 84 | | | 60 | | Total | | | | | $ | 2,119 | | | $ | 1,559 | |
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Net Realized Gains and Losses on Investments |
Net realized investment (losses) gains on investments for the three and nine months ended September 30, 2021 and 2020 are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30 | | Nine Months Ended September 30 | | 2021 | | 2020 | | 2021 | | 2020 | Net realized (losses) gains: | | | | | | | | Fixed maturity securities: | | | | | | | | Gross realized gains from sales | $ | 30 | | | $ | 52 | | | $ | 133 | | | $ | 131 | | Gross realized losses from sales | (8) | | | (14) | | | (32) | | | (84) | | Impairment recoveries (losses) recognized in income | — | | | 11 | | | 1 | | | (13) | | Net realized gains from sales of fixed maturity securities | 22 | | | 49 | | | 102 | | | 34 | | Equity securities: | | | | | | | | Gross realized gains | 10 | | | 207 | | | 32 | | | 260 | | Gross realized losses | (15) | | | (19) | | | (85) | | | (77) | | Net realized (losses) gains on equity securities | (5) | | | 188 | | | (53) | | | 183 | | Other invested assets: | | | | | | | | Realized (losses) gains | (91) | | | 10 | | | 4 | | | 17 | | Impairment recoveries (losses) recognized in income | 1 | | | (16) | | | (5) | | | (51) | | Net realized losses from sales of other investments | (90) | | | (6) | | | (1) | | | (34) | | Net realized (losses) gains on investments | $ | (73) | | | $ | 231 | | | $ | 48 | | | $ | 183 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Gains (Losses) Related to Equity Securities |
The gains and losses related to equity securities for the three and nine months ended September 30, 2021 and 2020 are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30 | | Nine Months Ended September 30 | | 2021 | | 2020 | | 2021 | | 2020 | Net realized (losses) gains recognized on equity securities | $ | (5) | | | $ | 188 | | | $ | (53) | | | $ | 183 | | Less: Net realized (losses) gains recognized on equity securities sold during the period | (1) | | | 13 | | | (57) | | | 20 | | Unrealized (losses) gains recognized on equity securities still held at the end of the period | $ | (4) | | | $ | 175 | | | $ | 4 | | | $ | 163 | |
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Securities Lending Programs |
The remaining contractual maturity of our securities lending agreements at September 30, 2021 is as follows: | | | | | | | | | | | | | | | Overnight and Continuous | | | | | | | | | Securities lending collateral | | | | | | | | | | Cash | $ | 2,028 | | | | | | | | | | | | | | | | | | | | United States Government securities | 200 | | | | | | | | | | Other securities | 1 | | | | | | | | | | | | | | | | | | | | Total | $ | 2,229 | | | | | | | | | |
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