Fair Value (Tables)

12 Months Ended

Dec. 31, 2021

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.


December 31, 2021							Total Assets/Liabilities at Fair Value
(In millions)	Level 1		Level 2		Level 3
Assets
Fixed maturity securities:
Corporate bonds and other	$	140	$	23,775	$	937	$	24,852
States, municipalities and political subdivisions	—		11,887		56		11,943
Asset-backed	—		7,029		556		7,585
Total fixed maturity securities	140		42,691		1,549		44,380
Equity securities:
Common stock	220		—		13		233
Non-redeemable preferred stock	65		721		16		802
Total equity securities	285		721		29		1,035
Short term and other	1,798		74		—		1,872
Total assets	$	2,223	$	43,486	$	1,578	$	47,287
Liabilities
Other liabilities	$	—	$	12	$	—	$	12
Total liabilities	$	—	$	12	$	—	$	12


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)	(10)		—		—		(2)		(12)
Reported in Net investment income	—		—		7		2		9
Reported in Other comprehensive income (loss)	(32)		(1)		(10)		—		(43)
Total realized and unrealized investment gains (losses)	(42)		(1)		(3)		—		(46)
Purchases	312		12		287		1		612
Sales	(3)		—		(9)		(20)		(32)
Settlements	(68)		(1)		(61)		—		(130)
Transfers into Level 3	20		—		109		21		150
Transfers out of Level 3	(52)		—		(75)		—		(127)
Balance as of December 31, 2021	$	937	$	56	$	556	$	29	$	1,578
Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2021 recognized in Net income (loss) in the period	$	—	$	—	$	—	$	(2)	$	(2)
Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2021 recognized in Other comprehensive income (loss) in the period	(32)		(1)		(11)		—		(44)


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)	1		—		(1)		(4)		(4)
Reported in Net investment income	—		—		2		(2)		—
Reported in Other comprehensive income (loss)	43		1		16		—		60
Total realized and unrealized investment gains (losses)	44		1		17		(6)		56
Purchases	264		45		154		15		478
Sales	(3)		—		(9)		—		(12)
Settlements	(13)		—		(32)		—		(45)
Transfers into Level 3	10		—		30		—		40
Transfers out of Level 3	—		—		(17)		—		(17)
Balance as of December 31, 2020	$	770	$	46	$	308	$	27	$	1,151
Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2020 recognized in Net income (loss) in the period	$	—	$	—	$	—	$	(6)	$	(6)
Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2020 recognized in Other comprehensive income (loss) in the period	43		1		18		—		62

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.

December 31, 2021

Estimated Fair Value
(In millions)

Valuation Technique(s)

Unobservable Input(s)

Range
(Weighted Average)

Fixed maturity securities

1,225

Discounted cash flow

Credit spread

1% - 7% (2%)

December 31, 2020