10-Q Fair Value (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2023

Dec. 31, 2022

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, 2023 and December 31, 2022 is as follows:


	Level I		Level II		Level III		Total
September 30, 2023
Assets:
Cash equivalents	$	7,036	$	—	$	—	$	7,036
Fixed maturity securities, available-for-sale:
United States Government securities	—		1,777		—		1,777
Government sponsored securities	—		102		—		102
Foreign government securities	—		12		—		12
States, municipalities and political subdivisions, tax-exempt	—		3,579		—		3,579
Corporate securities	—		13,303		110		13,413
Residential mortgage-backed securities	—		3,442		2		3,444
Commercial mortgage-backed securities	—		1,964		—		1,964
Other asset-backed securities	—		3,917		419		4,336

Total fixed maturity securities, available-for-sale	—		28,096		531		28,627
Equity securities:
Exchange traded funds	56		—		—		56

Common equity securities	11		29		—		40
Private equity securities	—		—		69		69
Total equity securities	67		29		69		165
Other invested assets - common equity securities	102		—		—		102
Securities lending collateral	—		2,405		—		2,405
Derivatives - other assets	—		11		—		11
Total assets	$	7,205	$	30,541	$	600	$	38,346
Liabilities:
Derivatives - other liabilities	$	—	$	(92)	$	—	$	(92)
Total liabilities	$	—	$	(92)	$	—	$	(92)

December 31, 2022
Assets:
Cash equivalents	$	3,567	$	—	$	—	$	3,567
Fixed maturity securities, available-for-sale:
United States Government securities	—		1,401		—		1,401
Government sponsored securities	—		78		—		78
Foreign government securities	—		274		—		274
States, municipalities and political subdivisions, tax-exempt	—		4,143		—		4,143
Corporate securities	—		12,392		137		12,529
Residential mortgage-backed securities	—		2,663		—		2,663
Commercial mortgage-backed securities	—		1,878		—		1,878
Other asset-backed securities	—		3,382		356		3,738
Total fixed maturity securities, available-for-sale	—		26,211		493		26,704
Equity securities:
Exchange traded funds	822		—		—		822

Common equity securities	2		41		—		43
Private equity securities	—		—		88		88
Total equity securities	824		41		88		953
Other invested assets - common equity securities	103		—		—		103
Securities lending collateral	—		2,457		—		2,457
Derivatives - other assets	—		3		—		3
Total assets	$	4,494	$	28,712	$	581	$	33,787
Liabilities:
Derivatives - other liabilities	$	—	$	(60)	$	—	$	(60)
Total liabilities	$	—	$	(60)	$	—	$	(60)

A summary of fair value measurements by level for assets and liabilities measured at fair value on a recurring basis at December 31, 2022 and 2021 is as follows:


	Level I		Level II		Level III		Total
December 31, 2022
Assets:
Cash equivalents	$	3,567	$	—	$	—	$	3,567
Fixed maturity securities, available-for-sale:
United States Government securities	—		1,401		—		1,401
Government sponsored securities	—		78		—		78
Foreign government securities	—		274		—		274
States, municipalities and political subdivisions, tax-exempt	—		4,143		—		4,143
Corporate securities	—		12,392		137		12,529
Residential mortgage-backed securities	—		2,663		—		2,663
Commercial mortgage-backed securities	—		1,878		—		1,878
Other asset-backed securities	—		3,382		356		3,738
Total fixed maturity securities, available-for-sale	—		26,211		493		26,704
Equity securities:
Exchange traded funds	822		—		—		822
Common equity securities	2		41		—		43
Private equity securities	—		—		88		88
Total equity securities	824		41		88		953
Other invested assets - common equity securities	103		—		—		103
Securities lending collateral	—		2,457		—		2,457
Derivatives - other assets	—		3		—		3
Total assets	$	4,494	$	28,712	$	581	$	33,787
Liabilities:
Derivatives - other liabilities	$	—	$	(60)	$	—	$	(60)
Total liabilities	$	—	$	(60)	$	—	$	(60)

December 31, 2021
Assets:
Cash equivalents	$	2,415	$	—	$	—	$	2,415
Fixed maturity securities, available-for-sale:
United States Government securities	—		1,432		—		1,432
Government sponsored securities	—		68		—		68
Foreign government securities	—		347		—		347
States, municipalities and political subdivisions, tax-exempt	—		5,621		—		5,621
Corporate securities	—		12,027		336		12,363
Residential mortgage-backed securities	—		2,513		5		2,518
Commercial mortgage-backed securities	—		1,643		—		1,643
Other asset-backed securities	—		2,888		19		2,907
Total fixed maturity securities, available-for-sale	—		26,539		360		26,899
Equity securities:
Exchange traded funds	1,750		—		—		1,750
Common equity securities	8		34		—		42
Private equity securities	—		—		89		89
Total equity securities	1,758		34		89		1,881
Other invested assets - common equity securities	138		—		—		138
Securities lending collateral	—		2,155		—		2,155
Derivatives - other assets	—		19		—		19
Total assets	$	4,311	$	28,747	$	449	$	33,507
Liabilities:
Derivatives - other liabilities	$	—	$	(1)	$	—	$	(1)
Total liabilities	$	—	$	(1)	$	—	$	(1)

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, 2023 and 2022 is as follows:





	Corporate Securities		Residential Mortgage- backed Securities		Other Asset- backed Securities		Equity Securities		Total
Three Months Ended September 30, 2023
Beginning balance at July 1, 2023	$	103	$	—	$	366	$	75	$	544
Total gains (losses):
Recognized in net income	(2)		—		—		2		—
Recognized in accumulated other comprehensive loss	1		—		—		—		1
Purchases	17		—		60		3		80
Sales	(2)		—		(6)		(11)		(19)

Settlements	(12)		—		—		—		(12)
Transfers into Level III	6		2		—		—		8
Transfers out of Level III	(1)		—		(1)		—		(2)
Ending balance at September 30, 2023	$	110	$	2	$	419	$	69	$	600
Change in unrealized gains (losses) included in net income related to assets still held at September 30, 2023	$	—	$	—	$	—	$	—	$	—

Three Months Ended September 30, 2022
Beginning balance at July 1, 2022	$	155	$	—	$	218	$	94	$	467
Total gains (losses):
Recognized in net income	—		—		—		—		—
Recognized in accumulated other comprehensive loss	1		—		17		—		18
Purchases	15		—		77		3		95
Sales	(26)		—		(1)		(2)		(29)
Settlements	(10)		—		—		—		(10)
Transfers into Level III	—		—		—		—		—
Transfers out of Level III	(6)		—		—		—		(6)
Ending balance at September 30, 2022	$	129	$	—	$	311	$	95	$	535
Change in unrealized gains (losses) included in net income related to assets still held at September 30, 2022	$	—	$	—	$	—	$	—	$	—

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, 2023 and 2022 is as follows:



	Corporate Securities		Residential Mortgage- backed Securities		Other Asset- backed Securities		Equity Securities		Total
Nine Months Ended September 30, 2023
Beginning balance at January 1, 2023	$	137	$	—	$	356	$	88	$	581
Total gains (losses):
Recognized in net income	(8)		—		—		(3)		(11)
Recognized in accumulated other comprehensive loss	5		—		2		—		7
Purchases	22		—		72		4		98
Sales	(43)		—		(17)		(20)		(80)

Settlements	(18)		—		—		—		(18)
Transfers into Level III	35		2		6		—		43
Transfers out of Level III	(20)		—		—		—		(20)
Ending balance at September 30, 2023	$	110	$	2	$	419	$	69	$	600
Change in unrealized losses included in net income related to assets still held at September 30, 2023	$	—	$	—	$	—	$	(4)	$	(4)

Nine Months Ended September 30, 2022
Beginning balance at January 1, 2022	$	336	$	5	$	19	$	89	$	449
Total gains (losses):
Recognized in net income	—		—		—		1		1
Recognized in accumulated other comprehensive loss	(1)		—		17		—		16
Purchases	40		—		281		24		345
Sales	(201)		—		(1)		(19)		(221)
Settlements	(42)		—		—		—		(42)
Transfers into Level III	9		—		—		—		9
Transfers out of Level III	(12)		(5)		(5)		—		(22)
Ending balance at September 30, 2022	$	129	$	—	$	311	$	95	$	535
Change in unrealized gains included in net income related to assets still held at September 30, 2022	$	—	$	—	$	—	$	1	$	1

A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using Level III inputs for the years ended December 31, 2022, 2021 and 2020 is as follows:


	Corporate Securities		Residential Mortgage- backed Securities		Other Asset-Backed Securities		Equity Securities		Total
Year ended December 31, 2022
Beginning balance at January 1, 2022	$	336	$	5	$	19	$	89	$	449
Total gains (losses):
Recognized in net income	—		—		(1)		—		(1)
Recognized in accumulated other comprehensive income	(1)		—		(16)		—		(17)
Purchases	56		—		370		17		443
Sales	(210)		—		(14)		(18)		(242)
Settlements	(41)		—		—		—		(41)
Transfers into Level III	9		—		—		—		9
Transfers out of Level III	(12)		(5)		(2)		—		(19)
Ending balance at December 31, 2022	$	137	$	—	$	356	$	88	$	581
Change in unrealized gains or losses included in net income related to assets still held at December 31, 2022	$	—	$	—	$	—	$	—	$	—

Year ended December 31, 2021
Beginning balance at January 1, 2021	$	325	$	2	$	5	$	60	$	392
Total gains (losses):
Recognized in net income	2		—		—		17		19
Recognized in accumulated other comprehensive income	3		—		—		—		3
Purchases	179		4		17		16		216
Sales	(18)		—		—		(4)		(22)
Settlements	(157)		—		—		—		(157)
Transfers into Level III	3		—		—		—		3
Transfers out of Level III	(1)		(1)		(3)		—		(5)
Ending balance at December 31, 2021	$	336	$	5	$	19	$	89	$	449
Change in unrealized gains or losses included in net income related to assets still held at December 31, 2021	$	—	$	—	$	—	$	18	$	18

Year ended December 31, 2020
Beginning balance at January 1, 2020	$	303	$	2	$	7	$	85	$	397
Total gains (losses):
Recognized in net income	(3)		—		—		(19)		(22)
Recognized in accumulated other comprehensive income	(5)		—		—		—		(5)
Purchases	85		—		—		16		101
Sales	(19)		—		—		(22)		(41)
Settlements	(44)		—		(2)		—		(46)
Transfers into Level III	10		—		—		—		10
Transfers out of Level III	(2)		—		—		—		(2)
Ending balance at December 31, 2020	$	325	$	2	$	5	$	60	$	392
Change in unrealized gains or losses included in net income related to assets still held at December 31, 2020	$	—	$	—	$	—	$	(19)	$	(19)

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, 2023 and December 31, 2022 is as follows:


	Carrying Value		Estimated Fair Value
			Level I		Level II		Level III		Total
September 30, 2023
Assets:
Other invested assets	$	6,016	$	—	$	—	$	6,016	$	6,016
Liabilities:
Debt:



Notes	24,844		—		21,815		—		21,815


December 31, 2022
Assets:
Other invested assets	$	5,582	$	—	$	—	$	5,582	$	5,582
Liabilities:
Debt:
Short-term borrowings	265		—		265		—		265

Notes	23,786		—		21,861		—		21,861
Convertible debentures	63		—		463		—		463

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 December 31, 2022 and 2021 is as follows:


	Carrying Value		Estimated Fair Value
			Level I		Level II		Level III		Total
December 31, 2022
Assets:
Other invested assets	$	5,582	$	—	$	—	$	5,582	$	5,582
Liabilities:
Debt:
Short-term borrowings	265		—		265		—		265

Notes	23,786		—		21,861		—		21,861
Convertible debentures	63		—		463		—		463

December 31, 2021
Assets:
Other invested assets	$	5,087	$	—	$	—	$	5,087	$	5,087
Liabilities:
Debt:
Short-term borrowings	275		—		275		—		275
Commercial paper	300		—		300		—		300
Notes	22,384		—		25,150		—		25,150
Convertible debentures	72		—		687		—		687