Fair Value (Tables)

3 Months Ended

Mar. 31, 2024

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, 2024							Total Assets/Liabilities at Fair Value
(In millions)	Level 1		Level 2		Level 3
Assets
Fixed maturity securities:
Corporate bonds and other	$	189	$	23,966	$	1,082	$	25,237
States, municipalities and political subdivisions	—		7,245		43		7,288
Asset-backed	—		7,209		871		8,080
Total fixed maturity securities	189		38,420		1,996		40,605
Equity securities:
Common stock	195		—		11		206
Non-redeemable preferred stock	46		439		—		485
Total equity securities	241		439		11		691
Short term and other	1,801		19		—		1,820
Total assets	$	2,231	$	38,878	$	2,007	$	43,116
Liabilities
Other liabilities	$	—	$	—	$	—	$	—
Total liabilities	$	—	$	—	$	—	$	—

December 31, 2023							Total Assets/Liabilities at Fair Value
(In millions)	Level 1		Level 2		Level 3
Assets
Fixed maturity securities:
Corporate bonds and other	$	161	$	23,926	$	1,045	$	25,132
States, municipalities and political subdivisions	—		7,348		44		7,392
Asset-backed	—		7,000		901		7,901
Total fixed maturity securities	161		38,274		1,990		40,425
Equity securities:
Common stock	167		—		24		191
Non-redeemable preferred stock	52		440		—		492
Total equity securities	219		440		24		683
Short term and other	1,976		32		—		2,008
Total assets	$	2,356	$	38,746	$	2,014	$	43,116
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, 2024	$	1,045	$	44	$	901	$	24	$	2,014
Total realized and unrealized investment gains (losses):
Reported in Net investment gains (losses)	—		—		(4)		—		(4)
Reported in Net investment income	—		—		6		6		12
Reported in Other comprehensive income (loss)	(12)		(1)		(5)		—		(18)
Total realized and unrealized investment gains (losses)	(12)		(1)		(3)		6		(10)
Purchases	74		—		18		—		92
Sales	—		—		(9)		(19)		(28)
Settlements	(36)		—		(17)		—		(53)
Transfers into Level 3	11		—		—		—		11
Transfers out of Level 3	—		—		(19)		—		(19)
Balance as of March 31, 2024	$	1,082	$	43	$	871	$	11	$	2,007
Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2024 recognized in Net income (loss) in the period	$	—	$	—	$	—	$	1	$	1
Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2024 recognized in Other comprehensive income (loss) in the period	(14)		(1)		(5)		—		(20)

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

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, 2024	Estimated Fair Value (In millions)		Valuation Technique(s)	Unobservable Input(s)	Range  (Weighted Average)
Fixed maturity securities	$	1,521	Discounted cash flow	Credit spread	1% - 7% (2%)

December 31, 2023	Estimated Fair Value (In millions)		Valuation Technique(s)	Unobservable Input(s)	Range  (Weighted Average)
Fixed maturity securities	$	1,495	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, 2024	Carrying Amount		Estimated Fair Value
(In millions)			Level 1		Level 2		Level 3		Total
Assets
Mortgage loans	$	1,029	$	—	$	—	$	987	$	987
Liabilities
Short-term debt	$	550	$	—	$	549	$	—	$	549
Long-term debt	2,970		—		2,852		—		2,852

December 31, 2023	Carrying Amount		Estimated Fair Value
(In millions)			Level 1		Level 2		Level 3		Total
Assets
Mortgage loans	$	1,035	$	—	$	—	$	997	$	997
Liabilities
Short-term debt	$	550	$	—	$	546	$	—	$	546
Long-term debt	2,481		—		2,385		—		2,385