Fair Value (Tables)

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Assets and liabilities measured at fair value on a recurring basis

Assets and liabilities measured at fair value on a recurring basis are presented in the following tables. Corporate bonds and other includes obligations of the U.S. Treasury, government-sponsored enterprises, foreign governments and redeemable preferred stock.

March 31, 2021							Total Assets/Liabilities at Fair Value
(In millions)	Level 1		Level 2		Level 3
Assets
Fixed maturity securities:
Corporate bonds and other	$	152	$	23,444	$	767	$	24,363
States, municipalities and political subdivisions	—		11,556		44		11,600
Asset-backed	—		7,301		315		7,616
Total fixed maturity securities	152		42,301		1,126		43,579
Equity securities:
Common stock	177		—		21		198
Non-redeemable preferred stock	67		711		8		786
Total equity securities	244		711		29		984
Short term and other	1,178		25		—		1,203
Total assets	$	1,574	$	43,037	$	1,155	$	45,766
Liabilities
Other liabilities	$	—	$	2	$	—	$	2
Total liabilities	$	—	$	2	$	—	$	2

December 31, 2020							Total Assets/Liabilities at Fair Value
(In millions)	Level 1		Level 2		Level 3
Assets
Fixed maturity securities:
Corporate bonds and other	$	355	$	24,109	$	770	$	25,234
States, municipalities and political subdivisions	—		11,546		46		11,592
Asset-backed	—		7,497		308		7,805
Total fixed maturity securities	355		43,152		1,124		44,631
Equity securities:
Common stock	175		—		20		195
Non-redeemable preferred stock	68		722		7		797
Total equity securities	243		722		27		992
Short term and other	1,761		28		—		1,789
Total assets	$	2,359	$	43,902	$	1,151	$	47,412
Liabilities
Other liabilities	$	—	$	19	$	—	$	19
Total liabilities	$	—	$	19	$	—	$	19

Table of reconciliation for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs

The tables below present a reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3).

Level 3 (In millions)	Corporate bonds and other		States, municipalities and political subdivisions		Asset-backed		Equity securities		Total
Balance as of January 1, 2021	$	770	$	46	$	308	$	27	$	1,151
Total realized and unrealized investment gains (losses):
Reported in Net investment gains (losses)	(13)		—		—		1		(12)
Reported in Net investment income	—		—		2		1		3
Reported in Other comprehensive income (loss)	(40)		(2)		(9)		—		(51)
Total realized and unrealized investment gains (losses)	(53)		(2)		(7)		2		(60)
Purchases	42		—		30		—		72
Sales	—		—		—		—		—
Settlements	(2)		—		(17)		—		(19)
Transfers into Level 3	10		—		9		—		19
Transfers out of Level 3	—		—		(8)		—		(8)
Balance as of March 31, 2021	$	767	$	44	$	315	$	29	$	1,155
Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2021 recognized in Net income (loss) in the period	$	—	$	—	$	—	$	2	$	2
Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2021 recognized in Other comprehensive income (loss) in the period	(40)		(2)		(9)		—		(51)

Level 3 (In millions)	Corporate bonds and other		States, municipalities and political subdivisions		Asset-backed		Equity securities		Total
Balance as of January 1, 2020	$	468	$	—	$	165	$	18	$	651
Total realized and unrealized investment gains (losses):
Reported in Net investment gains (losses)	—		—		—		—		—
Reported in Net investment income	—		—		—		(3)		(3)
Reported in Other comprehensive income (loss)	(37)		—		(9)		—		(46)
Total realized and unrealized investment gains (losses)	(37)		—		(9)		(3)		(49)
Purchases	67		—		45		—		112
Sales	—		—		—		—		—
Settlements	(2)		—		(3)		—		(5)
Transfers into Level 3	—		—		—		—		—
Transfers out of Level 3	—		—		(1)		—		(1)
Balance as of March 31, 2020	$	496	$	—	$	197	$	15	$	708
Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2020 recognized in Net income (loss) in the period	$	—	$	—	$	—	$	(3)	$	(3)
Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2020 recognized in Other comprehensive income (loss) in the period	(35)		—		(9)		—		(44)

Quantitative information about significant unobservable inputs in the fair value measurement of level 3 assets

The following tables present quantitative information about the significant unobservable inputs utilized by the Company in the fair value measurements of Level 3 assets. Valuations for assets and liabilities not presented in the tables below are primarily based on broker/dealer quotes for which there is a lack of transparency as to inputs used to develop the valuations. The quantitative detail of these unobservable inputs is neither provided nor reasonably available to the Company. The weighted average rate is calculated based on fair value.

March 31, 2021	Estimated Fair Value (In millions)		Valuation Technique(s)	Unobservable Input(s)	Range  (Weighted Average)
Fixed maturity securities	$	936	Discounted cash flow	Credit spread	1% - 8% (2%)

December 31, 2020	Estimated Fair Value (In millions)		Valuation Technique(s)	Unobservable Input(s)	Range  (Weighted Average)
Fixed maturity securities	$	966	Discounted cash flow	Credit spread	1% - 8% (3%)

Carrying amount and estimated fair value of financial instrument assets and liabilities not measured at fair value

The carrying amount and estimated fair value of the Company's financial assets and liabilities which are not measured at fair value on the Condensed Consolidated Balance Sheets are presented in the following tables.

March 31, 2021	Carrying Amount		Estimated Fair Value
(In millions)			Level 1		Level 2		Level 3		Total
Assets
Mortgage loans	$	1,043	$	—	$	—	$	1,107	$	1,107
Liabilities
Long term debt	$	2,777	$	—	$	3,016	$	—	$	3,016

December 31, 2020	Carrying Amount		Estimated Fair Value
(In millions)			Level 1		Level 2		Level 3		Total
Assets
Mortgage loans	$	1,068	$	—	$	—	$	1,151	$	1,151
Liabilities
Long term debt	$	2,776	$	—	$	3,148	$	—	$	3,148