Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2023

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, 2023, and December 31, 2022. We do not have any liabilities carried at fair value.


(Dollars in millions)	Level 1		Level 2		Level 3		Total
At March 31, 2023
Fixed maturities, available for sale:
Corporate	$	—	$	7,091	$	—	$	7,091
States, municipalities and political subdivisions	—		4,749		—		4,749
Government-sponsored enterprises	—		387		—		387
Commercial mortgage-backed	—		225		—		225
United States government	195		—		—		195
Foreign government	—		31		—		31


Subtotal	195		12,483		—		12,678
Common equities	9,589		—		—		9,589
Nonredeemable preferred equities	—		378		—		378

Separate accounts taxable fixed maturities	—		836		—		836
Top Hat savings plan mutual funds and common equity (included in Other assets)	64		—		—		64
Total	$	9,848	$	13,697	$	—	$	23,545

At December 31, 2022
Fixed maturities, available for sale:
Corporate	$	—	$	6,869	$	—	$	6,869
States, municipalities and political subdivisions	—		4,622		—		4,622
Government-sponsored enterprises	—		183		—		183
Commercial mortgage-backed	—		234		—		234
United States government	191		—		—		191
Foreign government	—		33		—		33

Subtotal	191		11,941		—		12,132
Common equities	9,454		—		—		9,454
Nonredeemable preferred equities	—		387		—		387
Separate accounts taxable fixed maturities	—		815		—		815
Top Hat savings plan mutual funds and common equity (included in Other assets)	57		—		—		57
Total	$	9,702	$	13,143	$	—	$	22,845

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,
			2023		2022		2023		2022
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		371		374		374
Total			$	789	$	789	$	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)	Level 1		Level 2		Level 3		Total
At March 31, 2023
Note payable	$	—	$	50	$	—	$	50
6.900% senior debentures, due 2028	—		30		—		30
6.920% senior debentures, due 2028	—		435		—		435
6.125% senior notes, due 2034	—		408		—		408
Total	$	—	$	923	$	—	$	923

At December 31, 2022
Note payable	$	—	$	50	$	—	$	50
6.900% senior debentures, due 2028	—		29		—		29
6.920% senior debentures, due 2028	—		418		—		418
6.125% senior notes, due 2034	—		388		—		388
Total	$	—	$	885	$	—	$	885

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)	Level 1		Level 2		Level 3		Total
At March 31, 2023
Life policy loans	$	—	$	—	$	37	$	37

Deferred annuities	—		—		608		608
Structured settlements	—		144		—		144
Total	$	—	$	144	$	608	$	752

At December 31, 2022
Life policy loans	$	—	$	—	$	37	$	37

Deferred annuities	—		—		621		621
Structured settlements	—		143		—		143
Total	$	—	$	143	$	621	$	764