Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2021

Fair Value Hierarchy for Assets Measured at Fair Value on a Recurring Basis

The following tables illustrate the fair value hierarchy for those assets measured at fair value on a recurring basis at March 31, 2021 and December 31, 2020. We do not have any liabilities carried at fair value.


(Dollars in millions)	Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
At March 31, 2021
Fixed maturities, available for sale:
Corporate	$	—	$	6,920	$	—	$	6,920
States, municipalities and political subdivisions	—		4,960		—		4,960
Commercial mortgage-backed	—		285		—		285
United States government	113		—		—		113
Foreign government	—		24		—		24
Government-sponsored enterprises	—		6		—		6


Subtotal	113		12,195		—		12,308
Common equities	9,032		—		—		9,032
Nonredeemable preferred equities	—		328		—		328

Separate accounts taxable fixed maturities	—		880		—		880
Top Hat savings plan mutual funds and common equity (included in Other assets)	57		—		—		57
Total	$	9,202	$	13,403	$	—	$	22,605

At December 31, 2020
Fixed maturities, available for sale:
Corporate	$	—	$	6,895	$	—	$	6,895
States, municipalities and political subdivisions	—		4,997		—		4,997
Commercial mortgage-backed	—		285		—		285
United States government	120		—		—		120
Foreign government	—		29		—		29
Government-sponsored enterprises	—		12		—		12

Subtotal	120		12,218		—		12,338
Common equities	8,541		—		—		8,541
Nonredeemable preferred equities	—		315		—		315
Separate accounts taxable fixed maturities	—		903		—		903
Top Hat savings plan mutual funds and common equity (included in Other assets)	51		—		—		51
Total	$	8,712	$	13,436	$	—	$	22,148

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block]

This table summarizes the book value and principal amounts of our long-term debt:


(Dollars in millions)				Book value				Principal amount
Interest rate		Year of issue		March 31,		December 31,		March 31,		December 31,
				2021		2020		2021		2020
6.900	%	1998	Senior debentures, due 2028	$	27	$	27	$	28	$	28
6.920	%	2005	Senior debentures, due 2028	391		391		391		391
6.125	%	2004	Senior notes, due 2034	370		370		374		374
Total				$	788	$	788	$	793	$	793

Fair Values of Deferred Annuities, Structured Settlements and Other Items

The following table shows fair values of our note payable and long-term debt:


(Dollars in millions)	Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
At March 31, 2021
Note payable	$	—	$	57	$	—	$	57
6.900% senior debentures, due 2028	—		34		—		34
6.920% senior debentures, due 2028	—		499		—		499
6.125% senior notes, due 2034	—		497		—		497
Total	$	—	$	1,087	$	—	$	1,087

At December 31, 2020
Note payable	$	—	$	54	$	—	$	54
6.900% senior debentures, due 2028	—		35		—		35
6.920% senior debentures, due 2028	—		515		—		515
6.125% senior notes, due 2034	—		522		—		522
Total	$	—	$	1,126	$	—	$	1,126

Fair Value of Life Policy Loans

The following table shows the fair value of our life policy loans included in other invested assets and the fair values of our deferred annuities and structured settlements included in life policy and investment contract reserves:


(Dollars in millions)	Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
At March 31, 2021
Life policy loans	$	—	$	—	$	45	$	45

Deferred annuities	—		—		795		795
Structured settlements	—		203		—		203
Total	$	—	$	203	$	795	$	998

At December 31, 2020
Life policy loans	$	—	$	—	$	49	$	49

Deferred annuities	—		—		836		836
Structured settlements	—		227		—		227
Total	$	—	$	227	$	836	$	1,063