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Investments (Tables)

12 Months Ended

Dec. 31, 2021

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		Allowance for Expected Credit Losses		Gross Unrealized				Fair
(at December 31, 2021, in millions)	Cost				Gains		Losses		Value
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities	$	3,574	$	—	$	20	$	32	$	3,562
Obligations of states, municipalities and political subdivisions:
Local general obligation	18,668		—		1,045		46		19,667
Revenue	11,274		—		693		27		11,940
State general obligation	1,158		—		67		2		1,223
Pre-refunded	3,825		—		207		—		4,032
Total obligations of states, municipalities and political subdivisions	34,925		—		2,012		75		36,862
Debt securities issued by foreign governments	1,041		—		7		7		1,041
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	1,754		—		68		5		1,817
All other corporate bonds	33,445		3		1,247		175		34,514
Redeemable preferred stock	12		—		2		—		14
Total	$	74,751	$	3	$	3,356	$	294	$	77,810


	Amortized		Allowance for Expected Credit Losses		Gross Unrealized				Fair
(at December 31, 2020, in millions)	Cost				Gains		Losses		Value
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities	$	2,111	$	—	$	38	$	—	$	2,149
Obligations of states, municipalities and political subdivisions:
Local general obligation	17,289		—		1,370		2		18,657
Revenue	11,806		—		909		—		12,715
State general obligation	1,343		—		101		—		1,444
Pre-refunded	3,325		—		219		—		3,544
Total obligations of states, municipalities and political subdivisions	33,763		—		2,599		2		36,360
Debt securities issued by foreign governments	1,028		—		26		—		1,054
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	2,222		—		139		—		2,361
All other corporate bonds	29,683		2		2,382		9		32,054
Redeemable preferred stock	23		—		2		—		25
Total	$	68,830	$	2	$	5,186	$	11	$	74,003

Amortized cost and fair value of fixed maturities by contractual maturity [Table Text Block]

The amortized cost and fair value of fixed maturities by contractual maturity follow. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


(at December 31, 2021, in millions)	Amortized Cost		Fair Value
Due in one year or less	$	4,592	$	4,635
Due after 1 year through 5 years	18,081		18,833
Due after 5 years through 10 years	25,645		26,401
Due after 10 years	24,679		26,124
	72,997		75,993
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	1,754		1,817
Total	$	74,751	$	77,810

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:


(at December 31, 2021, in millions)	Cost		Gross Gains		Gross Losses		Fair Value
Common stock	$	694	$	137	$	4	$	827
Non-redeemable preferred stock	55		11		—		66
Total	$	749	$	148	$	4	$	893


(at December 31, 2020, in millions)	Cost		Gross Gains		Gross Losses		Fair Value
Common stock	$	356	$	72	$	12	$	416
Non-redeemable preferred stock	59		9		—		68
Total	$	415	$	81	$	12	$	484

Unrealized investment losses [Table Text Block]

The following tables summarize, for all fixed maturities classified as available for sale in an unrealized loss position at December 31, 2021 and 2020, 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. The Company also relies upon estimates of several factors in its review and evaluation of individual investments, using the process described in note 1, in determining whether a credit loss impairment exists.


	Less than 12 months				12 months or longer				Total
(at December 31, 2021, 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	$	2,438	$	32	$	5	$	—	$	2,443	$	32
Obligations of states, municipalities and political subdivisions	3,873		69		153		6		4,026		75
Debt securities issued by foreign governments	452		7		7		—		459		7
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	426		5		1		—		427		5
All other corporate bonds	7,306		153		436		22		7,742		175
Total fixed maturities	$	14,495	$	266	$	602	$	28	$	15,097	$	294


	Less than 12 months				12 months or longer				Total
(at December 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	$	92	$	—	$	—	$	—	$	92	$	—
Obligations of states, municipalities and political subdivisions	245		2		—		—		245		2
Debt securities issued by foreign governments	7		—		—		—		7		—
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	20		—		1		—		21		—
All other corporate bonds	681		6		97		3		778		9
Total fixed maturities	$	1,045	$	8	$	98	$	3	$	1,143	$	11

Credit impairment charges included in net realized investment gains [Table Text Block]

Credit impairment charges included in net realized investment gains in the consolidated statement of income were as follows:


(for the year ended December 31, in millions)	2021		2020		2019
Fixed maturities
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities	$	—	$	—	$	—
Obligations of states, municipalities and political subdivisions	—		—		—
Debt securities issued by foreign governments	—		—		—
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	—		—		—
All other corporate bonds	2		15		4
Redeemable preferred stock	—		—		—
Total fixed maturities	2		15		4




Other investments	—		40		—
Total	$	2	$	55	$	4

Changes in the allowance for expected credit losses on fixed maturities classified as available for sale [Table Text Block]

The following table presents changes in the allowance for expected credit losses on fixed maturities classified as available for sale for the category of All Other Corporate Bonds (no other categories of fixed maturities currently have an allowance for expected credit losses):


	Fixed Maturities
	All Other Corporate Bonds
(in millions)	At and For the Twelve Months Ended December 31, 2021		At and For the Twelve Months Ended December 31, 2020

Balance, beginning of period	$	2	$	—
Additions for expected credit losses on securities where no credit losses were previously recognized	1		10
Additions (reductions) for expected credit losses on securities where credit losses were previously recognized	1		(6)
Reductions due to sales/defaults of credit-impaired securities	(1)		(2)
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	$	3	$	2

_________________________________________________________

(1)Credit impairment charges recognized in net realized investment gains included $0 million and $13 million for the twelve months ended December 31, 2021 and 2020, respectively, of credit losses on fixed maturity securities which the Company intends to sell. An allowance for expected credit losses was not previously recorded for these securities.

Net investment income [Table Text Block]


(for the year ended December 31, in millions)	2021		2020		2019
Gross investment income
Fixed maturities	$	1,989	$	2,011	$	2,070
Equity securities	19		15		15
Short-term securities	7		44		105
Real estate investments	59		48		55
Other investments	999		146		263
Gross investment income	3,073		2,264		2,508
Investment expenses	40		37		40
Net investment income	$	3,033	$	2,227	$	2,468

Change in net unrealized investments gains (losses) [Table Text Block]

Changes in net unrealized gains (losses) on investment securities that are included as a separate component of other comprehensive income (loss) were as follows:


(at and for the year ended December 31, in millions)	2021		2020		2019
Changes in net unrealized investment gains (losses)
Fixed maturities	$	(2,113)	$	2,322	$	2,990

Other investments	(2)		—		—
Change in net pre-tax unrealized gains (losses) on investment securities	(2,115)		2,322		2,990
Related tax expense (benefit)	(456)		494		631
Change in net unrealized gains (losses) on investment securities	(1,659)		1,828		2,359


Balance, beginning of year	4,074		2,246		(113)
Balance, end of year	$	2,415	$	4,074	$	2,246