Fair Value (Tables)

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized 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.

June 30, 2023	Level 1		Level 2		Level 3		Total
(In millions)
Fixed maturity securities:
Corporate bonds and other	$	137	$	22,286	$	971	$	23,394
States, municipalities and political subdivisions			7,767		43		7,810
Asset-backed			6,641		883		7,524
Fixed maturities available-for-sale	137		36,694		1,897		38,728
Fixed maturities trading	198						198
Total fixed maturities	$	335	$	36,694	$	1,897	$	38,926
Equity securities	$	603	$	422	$	26	$	1,051
Short term and other	4,274		42				4,316
Receivables			20				20
Payable to brokers	(54)						(54)
December 31, 2022
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
Fixed maturities available-for-sale	120		35,866		1,641		37,627
Fixed maturities trading	1		69				70
Total fixed maturities	$	121	$	35,935	$	1,641	$	37,697
Equity securities	$	669	$	435	$	35	$	1,139
Short term and other	4,539		167				4,706
Receivables			19				19
Payable to brokers	(82)						(82)

Reconciliations of Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs

The following tables present reconciliations for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2023 and 2022:

			Net Realized Investment Gains (Losses) and Net Change in Unrealized Investment Gains (Losses)																Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at June 30		Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at June 30
2023	Balance, April 1		Included in Net Income		Included in OCI		Purchases		Sales		Settlements		Transfers into Level 3		Transfers out of Level 3		Balance, June 30
(In millions)
Fixed maturity securities:
Corporate bonds and other	$	912			$	(15)	$	68			$	(5)	$	11			$	971			$	(15)
States, municipalities and political
subdivisions	44				(1)												43				(1)
Asset-backed	859		$	4	(7)		87				(17)				$	(43)	883				(7)
Fixed maturities available-for-sale	$	1,815	$	4	$	(23)	$	155	$	—	$	(22)	$	11	$	(43)	$	1,897	$	—	$	(23)
Equity securities	$	29	$	(1)					$	(2)							$	26	$	(1)

			Net Realized Investment Gains (Losses) and Net Change in Unrealized Investment Gains (Losses)																Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at June 30		Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at June 30
2022	Balance, April 1		Included in Net Income		Included in OCI		Purchases		Sales		Settlements		Transfers into Level 3		Transfers out of Level 3		Balance, June 30
(In millions)
Fixed maturity securities:
Corporate bonds and other	$	915	$	(1)	$	(82)	$	51			$	(37)					$	846			$	(81)
States, municipalities and political
subdivisions	51				(5)												46				(5)
Asset-backed	604		8		(52)		92		$	(2)	(23)		$	14			641				(52)
Fixed maturities available-for-sale	$	1,570	$	7	$	(139)	$	143	$	(2)	$	(60)	$	14	$	—	$	1,533	$	—	$	(138)
Equity securities	$	44	$	(3)					$	(3)	$	9					$	47	$	(3)

			Net Realized Investment Gains (Losses) and Net Change in Unrealized Investment Gains (Losses)																Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at June 30		Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at June 30
2023	Balance, January 1		Included in Net Income		Included in OCI		Purchases		Sales		Settlements		Transfers into Level 3		Transfers out of Level 3		Balance, June 30
(In millions)
Fixed maturity securities:
Corporate bonds and other	$	810			$	9	$	149			$	(8)	$	11			$	971			$	9
States, municipalities and political
subdivisions	43																43
Asset-backed	788		$	9			142				(26)		23		$	(53)	883				(1)
Fixed maturities available-for-sale	$	1,641	$	9	$	9	$	291	$	—	$	(34)	$	34	$	(53)	$	1,897	$	—	$	8
Equity securities	$	35	$	(7)					$	(2)							$	26	$	(7)

			Net Realized Investment Gains (Losses) and Net Change in Unrealized Investment Gains (Losses)																Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at June 30		Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at June 30
2022	Balance, January 1		Included in Net Income		Included in OCI		Purchases		Sales		Settlements		Transfers into  Level 3		Transfers out of Level 3		Balance, June 30
(In millions)
Fixed maturity securities:
Corporate bonds and other	$	937	$	(2)	$	(153)	$	118	$	(5)	$	(59)	$	10			$	846			$	(153)
States, municipalities and political
subdivisions	56				(10)												46				(10)
Asset-backed	556		11		(84)		232		(2)		(40)		19		$	(51)	641				(83)
Fixed maturities available-for-sale	$	1,549	$	9	$	(247)	$	350	$	(7)	$	(99)	$	29	$	(51)	$	1,533	$	—	$	(246)
Equity securities	$	29					$	12	$	(3)	$	9					$	47	$	(1)

Net investment gains and losses are reported in Net income as follows:

Major Category of Assets and Liabilities	Consolidated Condensed Statements of Operations Line Items
Fixed maturity securities available-for-sale	Investment gains (losses)
Fixed maturity securities trading	Net investment income
Equity securities	Investment gains (losses) and Net investment income
Other invested assets	Investment gains (losses) and Net investment income
Derivative financial instruments held in a trading portfolio	Net investment income
Derivative financial instruments, other	Investment gains (losses) and Operating revenues and other

Significant Unobservable Inputs

The following tables present quantitative information about the significant unobservable inputs utilized in the fair value measurement 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 unobservable inputs from these broker quotes is neither provided nor reasonably available. The weighted average rate is calculated based on fair value.

June 30, 2023	Estimated Fair Value		Valuation Techniques	Unobservable Inputs	Range (Weighted Average)
	(In millions)
Fixed maturity securities	$	1,415	Discounted cash flow	Credit spread	1%	—	7%	(2%)
December 31, 2022
Fixed maturity securities	$	1,177	Discounted cash flow	Credit spread	1%	—	8%	(2%)

Financial Assets and Liabilities Not Measured at Fair Value

The carrying amount, estimated fair value and the level of the fair value hierarchy of the financial assets and liabilities which are not measured at fair value on the Consolidated Condensed Balance Sheets are presented in the following tables. The carrying amounts and estimated fair values of short term debt and long term debt exclude finance lease obligations. The carrying amounts reported on the Consolidated Condensed Balance Sheets for cash and short term investments not carried at fair value and certain other assets and liabilities approximate fair value due to the short term nature of these items.

	Carrying Amount		Estimated Fair Value
June 30, 2023			Level 1	Level 2		Level 3		Total
(In millions)
Assets:
Other invested assets, primarily mortgage loans	$	1,009				$	954	$	954
Liabilities:
Short term debt	960			$	785	169		954
Long term debt	8,090			6,908		659		7,567
December 31, 2022
Assets:
Other invested assets, primarily mortgage loans	$	1,040				$	973	$	973
Liabilities:
Short term debt	853			$	744	111		855
Long term debt	8,160			7,035		586		7,621