Fair Value Measurements (Tables)

9 Months Ended

Sep. 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 September 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 September 30, 2021
Fixed maturities, available for sale:
Corporate	$	—	$	7,496	$	—	$	7,496
States, municipalities and political subdivisions	—		4,970		—		4,970
Commercial mortgage-backed	—		279		—		279
United States government	130		—		—		130
Foreign government	—		26		—		26
Government-sponsored enterprises	—		7		—		7


Subtotal	130		12,778		—		12,908
Common equities	9,465		—		—		9,465
Nonredeemable preferred equities	—		422		—		422

Separate accounts taxable fixed maturities	—		923		—		923
Top Hat savings plan mutual funds and common equity (included in Other assets)	62		—		—		62
Total	$	9,657	$	14,123	$	—	$	23,780

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		September 30,		December 31,		September 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 September 30, 2021
Note payable	$	—	$	59	$	—	$	59
6.900% senior debentures, due 2028	—		35		—		35
6.920% senior debentures, due 2028	—		508		—		508
6.125% senior notes, due 2034	—		510		—		510
Total	$	—	$	1,112	$	—	$	1,112

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 September 30, 2021
Life policy loans	$	—	$	—	$	43	$	43

Deferred annuities	—		—		800		800
Structured settlements	—		205		—		205
Total	$	—	$	205	$	800	$	1,005

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

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