Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 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 June 30, 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 June 30, 2021
Fixed maturities, available for sale:
Corporate	$	—	$	7,354	$	—	$	7,354
States, municipalities and political subdivisions	—		4,997		—		4,997
Commercial mortgage-backed	—		282		—		282
United States government	126		—		—		126
Foreign government	—		23		—		23
Government-sponsored enterprises	—		7		—		7


Subtotal	126		12,663		—		12,789
Common equities	9,522		—		—		9,522
Nonredeemable preferred equities	—		375		—		375

Separate accounts taxable fixed maturities	—		912		—		912
Top Hat savings plan mutual funds and common equity (included in Other assets)	63		—		—		63
Total	$	9,711	$	13,950	$	—	$	23,661

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		June 30,		December 31,		June 30,		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	371		370		374		374
Total				$	789	$	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 June 30, 2021
Note payable	$	—	$	59	$	—	$	59
6.900% senior debentures, due 2028	—		35		—		35
6.920% senior debentures, due 2028	—		512		—		512
6.125% senior notes, due 2034	—		511		—		511
Total	$	—	$	1,117	$	—	$	1,117

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 June 30, 2021
Life policy loans	$	—	$	—	$	44	$	44

Deferred annuities	—		—		811		811
Structured settlements	—		212		—		212
Total	$	—	$	212	$	811	$	1,023

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

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