Fair Value (Tables)

3 Months Ended

Mar. 31, 2023

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 United States of America (U.S.) Treasury, government-sponsored enterprises, foreign governments and redeemable preferred stock.

March 31, 2023							Total Assets/Liabilities at Fair Value
(In millions)	Level 1		Level 2		Level 3
Assets
Fixed maturity securities:
Corporate bonds and other	$	135	$	22,604	$	912	$	23,651
States, municipalities and political subdivisions	—		7,957		44		8,001
Asset-backed	—		6,596		859		7,455
Total fixed maturity securities	135		37,157		1,815		39,107
Equity securities:
Common stock	177		—		29		206
Non-redeemable preferred stock	55		421		—		476
Total equity securities	232		421		29		682
Short term and other	975		27		—		1,002
Total assets	$	1,342	$	37,605	$	1,844	$	40,791
Liabilities
Other liabilities	$	—	$	1	$	—	$	1
Total liabilities	$	—	$	1	$	—	$	1

December 31, 2022							Total Assets/Liabilities at Fair Value
(In millions)	Level 1		Level 2		Level 3
Assets
Fixed maturity securities:
Corporate bonds and other	$	120	$	21,187	$	810	$	22,117
States, municipalities and political subdivisions	—		8,274		43		8,317
Asset-backed	—		6,405		788		7,193
Total fixed maturity securities	120		35,866		1,641		37,627
Equity securities:
Common stock	150		—		35		185
Non-redeemable preferred stock	54		435		—		489
Total equity securities	204		435		35		674
Short term and other	1,608		71		—		1,679
Total assets	$	1,932	$	36,372	$	1,676	$	39,980
Liabilities
Other liabilities	$	—	$	1	$	—	$	1
Total liabilities	$	—	$	1	$	—	$	1

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, 2023	$	810	$	43	$	788	$	35	$	1,676
Total realized and unrealized investment gains (losses):
Reported in Net investment gains (losses)	—		—		—		—		—
Reported in Net investment income	—		—		5		(6)		(1)
Reported in Other comprehensive income (loss)	24		1		7		—		32
Total realized and unrealized investment gains (losses)	24		1		12		(6)		31
Purchases	81		—		55		—		136
Sales	—		—		—		—		—
Settlements	(3)		—		(9)		—		(12)
Transfers into Level 3	—		—		23		—		23
Transfers out of Level 3	—		—		(10)		—		(10)
Balance as of March 31, 2023	$	912	$	44	$	859	$	29	$	1,844
Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2023 recognized in Net income (loss) in the period	$	—	$	—	$	—	$	(6)	$	(6)
Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2023 recognized in Other comprehensive income (loss) in the period	24		1		7		—		32

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)

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, 2023	Estimated Fair Value (In millions)		Valuation Technique(s)	Unobservable Input(s)	Range  (Weighted Average)
Fixed maturity securities	$	1,340	Discounted cash flow	Credit spread	1% - 8% (3%)

December 31, 2022	Estimated Fair Value (In millions)		Valuation Technique(s)	Unobservable Input(s)	Range  (Weighted Average)
Fixed maturity securities	$	1,177	Discounted cash flow	Credit spread	1% - 8% (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, 2023	Carrying Amount		Estimated Fair Value
(In millions)			Level 1		Level 2		Level 3		Total
Assets
Mortgage loans	$	1,006	$	—	$	—	$	958	$	958
Liabilities
Short term debt	$	243	$	—	$	245	$	—	$	245
Long term debt	2,539		—		2,387		—		2,387

December 31, 2022	Carrying Amount		Estimated Fair Value
(In millions)			Level 1		Level 2		Level 3		Total
Assets
Mortgage loans	$	1,040	$	—	$	—	$	973	$	973
Liabilities
Short term debt	$	243	$	—	$	248	$	—	$	248
Long term debt	2,538		—		2,349		—		2,349