Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 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 September 30, 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 September 30, 2023
Fixed maturities, available for sale:
Corporate	$	—	$	7,113	$	—	$	7,113
States, municipalities and political subdivisions	—		4,424		—		4,424
Government-sponsored enterprises	—		874		—		874
United States government	217		—		—		217
Commercial mortgage-backed	—		196		—		196
Foreign government	—		19		—		19


Subtotal	217		12,626		—		12,843
Common equities	9,678		—		—		9,678
Nonredeemable preferred equities	—		353		—		353

Separate accounts taxable fixed maturities	—		823		—		823
Top Hat savings plan mutual funds and common equity (included in Other assets)	63		—		—		63
Total	$	9,958	$	13,802	$	—	$	23,760

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
United States government	191		—		—		191
Commercial mortgage-backed	—		234		—		234
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		September 30,		December 31,		September 30,		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	372		371		374		374
Total			$	790	$	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 September 30, 2023
Note payable	$	—	$	25	$	—	$	25
6.900% senior debentures, due 2028	—		28		—		28
6.920% senior debentures, due 2028	—		411		—		411
6.125% senior notes, due 2034	—		371		—		371
Total	$	—	$	835	$	—	$	835

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 September 30, 2023
Life policy loans	$	—	$	—	$	36	$	36

Deferred annuities	—		—		595		595
Structured settlements	—		129		—		129
Total	$	—	$	129	$	595	$	724

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

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