Investments (Tables)

6 Months Ended

Jun. 30, 2023

Investments [Abstract]

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 June 30, 2023, in millions)					Gains		Losses
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities	$	6,420	$	—	$	—	$	346	$	6,074
Obligations of U.S. states, municipalities and political subdivisions:
Local general obligation	18,886		—		33		1,600		17,319
Revenue	10,141		—		25		772		9,394
State general obligation	1,194		—		2		76		1,120
Pre-refunded	1,593		—		5		2		1,596
Total obligations of U.S. states, municipalities and political subdivisions	31,814		—		65		2,450		29,429
Debt securities issued by foreign governments	1,084		—		—		56		1,028
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	4,463		—		11		222		4,252
Corporate and all other bonds	35,246		4		23		2,836		32,429
Total	$	79,027	$	4	$	99	$	5,910	$	73,212

	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized				Fair Value
(at December 31, 2022, in millions)					Gains		Losses
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities	$	5,798	$	—	$	3	$	363	$	5,438
Obligations of U.S. states, municipalities and political subdivisions:
Local general obligation	19,615		—		33		1,825		17,823
Revenue	11,076		—		29		907		10,198
State general obligation	1,104		—		3		88		1,019
Pre-refunded	2,323		—		17		1		2,339
Total obligations of U.S. states, municipalities and political subdivisions	34,118		—		82		2,821		31,379
Debt securities issued by foreign governments	1,049		—		—		55		994
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	2,178		—		13		200		1,991
Corporate and all other bonds	34,237		3		37		2,913		31,358
Total	$	77,380	$	3	$	135	$	6,352	$	71,160

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 June 30, 2023, in millions)	Cost		Gross Gains		Gross Losses		Fair Value
Common stock	$	504	$	79	$	42	$	541
Non-redeemable preferred stock	44		2		—		46
Total	$	548	$	81	$	42	$	587

(at December 31, 2022, in millions)	Cost		Gross Gains		Gross Losses		Fair Value
Common stock	$	706	$	89	$	32	$	763
Non-redeemable preferred stock	41		3		—		44
Total	$	747	$	92	$	32	$	807

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 June 30, 2023 and December 31, 2022, the aggregate fair value and gross unrealized loss by the 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 the notes to the consolidated financial statements in the Company’s 2022 Annual Report.  The Company also relies upon estimates of several factors in its review and evaluation of individual investments, using the process described in note 1 of the notes to the consolidated financial statements in the Company’s 2022 Annual Report to determine whether a credit loss impairment exists.

	Less than 12 months				12 months or longer				Total
(at June 30, 2023, 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	$	4,119	$	76	$	1,900	$	270	$	6,019	$	346
Obligations of U.S. states, municipalities and political subdivisions	9,891		146		13,014		2,304		22,905		2,450
Debt securities issued by foreign governments	234		6		781		50		1,015		56
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	2,686		47		1,161		175		3,847		222
Corporate and all other bonds	10,116		315		20,698		2,521		30,814		2,836
Total	$	27,046	$	590	$	37,554	$	5,320	$	64,600	$	5,910

 

	Less than 12 months				12 months or longer				Total
(at December 31, 2022, 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	$	2,835	$	100	$	1,679	$	263	$	4,514	$	363
Obligations of U.S. states, municipalities and political subdivisions	19,251		1,975		3,134		846		22,385		2,821
Debt securities issued by foreign governments	604		22		367		33		971		55
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	1,414		128		316		72		1,730		200
Corporate and all other bonds	24,080		1,635		6,096		1,278		30,176		2,913
Total	$	48,184	$	3,860	$	11,592	$	2,492	$	59,776	$	6,352

Gross unrealized investment losses on securities continuously in an unrealized loss position of greater than 20% of amortized cost by length of time [Table Text Block]

The following tables summarize, for all fixed maturities reported at fair value for which fair value was less than 80% of amortized cost at June 30, 2023 and December 31, 2022, the gross unrealized investment loss by length of time those securities have continuously been in an unrealized loss position of greater than 20% of amortized cost:

	Period For Which Fair Value is Less Than 80% of Amortized Cost
(at June 30, 2023, in millions)	3 months or less		Greater than 3 months, 6 months or less		Greater than 6 months, 12 months or less		Greater than 12 months		Total
Fixed maturities
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities	$	—	$	—	$	—	$	—	$	—
Obligations of U.S. states, municipalities and political subdivisions	160		105		223		586		1,074
Debt securities issued by foreign governments	2		—		—		—		2
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	44		—		—		—		44
Corporate and all other bonds	272		45		57		5		379
Total	$	478	$	150	$	280	$	591	$	1,499

	Period For Which Fair Value is Less Than 80% of Amortized Cost
(at December 31, 2022, in millions)	3 months or less		Greater than 3 months, 6 months or less		Greater than 6 months, 12 months or less		Greater than 12 months		Total
Fixed maturities
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities	$	—	$	—	$	—	$	—	$	—
Obligations of U.S. states, municipalities and political subdivisions	81		776		643		—		1,500
Debt securities issued by foreign governments	1		—		—		—		1
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	4		48		—		—		52
Corporate and all other bonds	89		526		8		—		623
Total	$	175	$	1,350	$	651	$	—	$	2,176

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

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

	Fixed Maturities
	Corporate and All Other Bonds
	At and For the Three Months Ended
(in millions)	June 30, 2023		June 30, 2022
Balance, beginning of period	$	4	$	4
Additions for expected credit losses on securities where no credit losses were previously recognized	—		—
Additions 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	—		—
Balance, end of period	$	4	$	4

	Fixed Maturities
	Corporate and All Other Bonds
	At and For the Six Months Ended
(in millions)	June 30, 2023		June 30, 2022
Balance, beginning of period	$	3	$	3
Additions for expected credit losses on securities where no credit losses were previously recognized	—		—
Additions for expected credit losses on securities where credit losses were previously recognized	1		1
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	—		—
Balance, end of period	$	4	$	4