Investments (Tables)

3 Months Ended

Mar. 31, 2020

Amortized cost and fair value of investments in fixed maturities [Table Text Block]

The amortized cost and fair value of investments in fixed maturities classified as available for sale were as follows:



	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized				Fair Value
(at March 31, 2020, in millions)	Amortized Cost		Allowance for Expected Credit Losses		Gains		Losses		Fair Value
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities	$	2,003	$	—	$	53	$	1	$	2,055
Obligations of states, municipalities and political subdivisions:
Local general obligation	15,893		—		907		9		16,791
Revenue	10,158		—		593		3		10,748
State general obligation	1,149		—		65		—		1,214
Pre-refunded	2,166		—		89		—		2,255
Total obligations of states, municipalities and political subdivisions	29,366		—		1,654		12		31,008
Debt securities issued by foreign governments	1,016		—		24		—		1,040
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	3,165		—		147		5		3,307
All other corporate bonds	30,034		4		816		405		30,441
Redeemable preferred stock	46		—		—		—		46
Total	$	65,630	$	4	$	2,694	$	423	$	67,897



	Amortized		Gross Unrealized				Fair
(at December 31, 2019, in millions)	Cost		Gains		Losses		Value
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities	$	2,076	$	19	$	—	$	2,095
Obligations of states, municipalities and political subdivisions:
Local general obligation	15,490		829		4		16,315
Revenue	9,731		586		2		10,315
State general obligation	1,167		64		—		1,231
Pre-refunded	1,968		88		—		2,056
Total obligations of states, municipalities and political subdivisions	28,356		1,567		6		29,917
Debt securities issued by foreign governments	1,167		8		2		1,173
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	3,192		91		3		3,280
All other corporate bonds	30,442		1,195		18		31,619
Redeemable preferred stock	48		2		—		50
Total	$	65,281	$	2,882	$	29	$	68,134

Cost and fair value of investments in equity securities [Table Text Block]

The cost and fair value of investments in equity securities were as follows:



							Fair
(at March 31, 2020, in millions)	Cost		Gross Gains		Gross Losses		Value
Public common stock	$	339	$	9	$	43	$	305
Non-redeemable preferred stock	33		6		2		37
Total	$	372	$	15	$	45	$	342



							Fair
(at December 31, 2019, in millions)	Cost		Gross Gains		Gross Losses		Value
Public common stock	$	341	$	45	$	3	$	383
Non-redeemable preferred stock	35		7		—		42
Total	$	376	$	52	$	3	$	425

Unrealized investment losses [Table Text Block]

The following tables summarize, for all investments in an unrealized loss position at March 31, 2020 and December 31, 2019, the aggregate fair value and gross unrealized loss by length of time those securities have been continuously in an unrealized loss position. The fair value amounts reported in the tables are estimates that are prepared using the process described in note 4 herein and in note 4 of notes to the consolidated financial statements in the Company’s 2019 Annual Report. The Company also relies upon estimates of several credit and non-credit factors in its review and evaluation of individual investments, using the process described in note 1 of notes to the consolidated financial statements to determine whether credit impairment exists.



	Less than 12 months				12 months or longer				Total
(at March 31, 2020, in millions)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Fixed maturities
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities	$	71	$	1	$	—	$	—	$	71	$	1
Obligations of states, municipalities and political subdivisions	703		12		—		—		703		12
Debt securities issued by foreign governments	5		—		—		—		5		—
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	431		5		19		—		450		5
All other corporate bonds	8,239		382		188		23		8,427		405
Redeemable preferred stock	31		—		—		—		31		—
Total	$	9,480	$	400	$	207	$	23	$	9,687	$	423



	Less than 12 months				12 months or longer				Total
(at December 31, 2019, in millions)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Fixed maturities
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities	$	5	$	—	$	193	$	—	$	198	$	—
Obligations of states, municipalities and political subdivisions	668		6		12		—		680		6
Debt securities issued by foreign governments	257		1		147		1		404		2
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	399		2		131		1		530		3
All other corporate bonds	1,571		10		662		8		2,233		18
Total	$	2,900	$	19	$	1,145	$	10	$	4,045	$	29

Reconciliation of of the beginning and ending balances of the allowance for credit losses on fixed maturities classified as available-for-sale [Table Text Block]

The following table represents a reconciliation of the beginning and ending balances of the allowance for expected credit losses on fixed maturities classified as available for sale:



	Fixed Maturities
(for the three months ended March 31, 2020 in millions)	Mortgage-Backed Securities, Collateralized Mortgage Obligations and Pass-Through Securities		All Other Corporate Bonds		Total

Balance, Beginning of Period	$	—	$	—	$	—
Additions for expected credit losses on securities where no credit losses were previously recognized	—		4		4
Additions (reductions) for expected credit losses on securities where credit losses were previously recognized	—		—		—
Reductions due to sales/defaults of credit-impaired securities	—		—		—
Reductions for impairments of securities which the Company intends to sell or more likely than not will be required to sell ⁽¹⁾	—		—		—
Balance, End of Period	$	—	$	4	$	4

(1)

Credit impairment charges recognized in net realized investment gains (losses) for the three months ended March 31, 2020 included $12 million of credit losses on securities which the Company intends to sell. An allowance for expected credit losses was not previously recorded for these securities.