STATUTORY REPORTING PRACTICES AND OTHER REGULATORY MATTERS (Tables)

12 Months Ended

Dec. 31, 2019

STATUTORY REPORTING PRACTICES AND OTHER REGULATORY MATTERS

Schedule of favorable (unfavorable) effects of the Company's statutory surplus, compared to NAIC statutory surplus

The favorable (unfavorable) effects of the Company and its statutory surplus, compared to NAIC statutory surplus, from the use of these prescribed and permitted practices were as follows:

	As of December 31,
	2019		2018
	(Dollars In Millions)
Non-admission of goodwill	$	(143)	$	(181)
Total (net)	$	(143)	$	(181)

Schedule of favorable (unfavorable) effects on the statutory surplus of the Company's insurance subsidiaries, compared to NAIC statutory surplus

The favorable (unfavorable) effects on the statutory surplus of the Company’s insurance subsidiaries, compared to NAIC statutory surplus, from the use of these prescribed and permitted practices were as follows:

	As of December 31,
	2019		2018
	(Dollars In Millions)
Accounting for Letters of Credit as admitted assets	$	1,555	$	1,630
Accounting for certain notes as admitted assets	2,748		2,553
Reserving based on state specific actuarial practices	116		121
Reserving difference related to a captive insurance company	(71)		(50)
Total (net)	$	4,348	$	4,254