Fair Value (Tables)

3 Months Ended

Mar. 31, 2022

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, 2022							Total Assets/Liabilities at Fair Value
(In millions)	Level 1		Level 2		Level 3
Assets
Fixed maturity securities:
Corporate bonds and other	$	129	$	22,431	$	915	$	23,475
States, municipalities and political subdivisions	—		11,008		51		11,059
Asset-backed	—		6,807		604		7,411
Total fixed maturity securities	129		40,246		1,570		41,945
Equity securities:
Common stock	191		—		29		220
Non-redeemable preferred stock	63		683		15		761
Total equity securities	254		683		44		981
Short term and other	1,146		27		—		1,173
Total assets	$	1,529	$	40,956	$	1,614	$	44,099
Liabilities
Other liabilities	$	—	$	(16)	$	—	$	(16)
Total liabilities	$	—	$	(16)	$	—	$	(16)

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

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, 2022	$	937	$	56	$	556	$	29	$	1,578
Total realized and unrealized investment gains (losses):
Reported in Net investment gains (losses)	(1)		—		2		(1)		—
Reported in Net investment income	—		—		1		4		5
Reported in Other comprehensive income (loss)	(71)		(5)		(32)		—		(108)
Total realized and unrealized investment gains (losses)	(72)		(5)		(29)		3		(103)
Purchases	67		—		140		12		219
Sales	(5)		—		—		—		(5)
Settlements	(22)		—		(17)		—		(39)
Transfers into Level 3	10		—		5		—		15
Transfers out of Level 3	—		—		(51)		—		(51)
Balance as of March 31, 2022	$	915	$	51	$	604	$	44	$	1,614
Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2022 recognized in Net income (loss) in the period	$	—	$	—	$	—	$	3	$	3
Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2022 recognized in Other comprehensive income (loss) in the period	(72)		(5)		(31)		—		(108)

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)

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, 2022	Estimated Fair Value (In millions)		Valuation Technique(s)	Unobservable Input(s)	Range  (Weighted Average)
Fixed maturity securities	$	1,198	Discounted cash flow	Credit spread	1% - 7% (3%)

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%)

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, 2022	Carrying Amount		Estimated Fair Value
(In millions)			Level 1		Level 2		Level 3		Total
Assets
Mortgage loans	$	942	$	—	$	—	$	940	$	940
Liabilities
Long term debt	$	2,779	$	—	$	2,795	$	—	$	2,795

December 31, 2021	Carrying Amount		Estimated Fair Value
(In millions)			Level 1		Level 2		Level 3		Total
Assets
Mortgage loans	$	973	$	—	$	—	$	1,018	$	1,018
Liabilities
Long term debt	$	2,779	$	—	$	2,978	$	—	$	2,978