FAIR VALUE (Tables)

6 Months Ended

Jun. 30, 2023

Fair Value Measurement Levels for all Assets, Recorded at Fair and Market Value

The following tables present the fair value measurement levels for all assets, which the Company has recorded at fair value as of the periods indicated:


			Fair Value Measurement Using
(Dollars in millions)	June 30, 2023		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Fixed maturities - available for sale
U.S. Treasury securities and obligations of U.S. government agencies and corporations	$	439	$	—	$	439	$	—
Obligations of U.S. states and political subdivisions	395		—		395		—
Corporate securities	4,209		—		3,498		711
Asset-backed securities	4,676		—		3,561		1,115
Mortgage-backed securities
Commercial	503		—		503		—
Agency residential	1,654		—		1,654		—
Non-agency residential	59		—		59		—
Foreign government securities	684		—		684		—
Foreign corporate securities	1,583		—		1,567		16
Total fixed maturities - available for sale	14,202		—		12,360		1,842

Equity securities, fair value	167		145		22		—
Other invested assets, fair value	1,474		—		—		1,474

(Some amounts may not reconcile due to rounding.)


	Fair Value Measurement Using
(Dollars in millions)	December 31, 2022		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Fixed maturities - available for sale
U.S. Treasury securities and obligations of U.S. government agencies and corporations	$	535	$	—	$	535	$	—
Obligations of U.S. states and political subdivisions	413		—		413		—
Corporate securities	3,561		—		2,846		715
Asset-backed securities	3,951		—		2,957		994
Mortgage-backed securities
Commercial	509		—		509		—
Agency residential	1,628		—		1,628		—
Non-agency residential	3		—		3		—
Foreign government securities	637		—		637		—
Foreign corporate securities	1,433		—		1,417		16
Total fixed maturities - available for sale	12,671		—		10,946		1,725

Equity securities, fair value	194		132		63		—
Other invested assets, fair value	1,472		—		—		1,472

(Some amounts may not reconcile due to rounding.)

Activity Under Level 3, Fair Value Measurements Using Significant Unobservable Inputs by Asset Type

The following tables present the activity under Level 3, fair value measurements using significant unobservable inputs for fixed maturities - available for sale, for the periods indicated:


	Total Fixed Maturities - Available for Sale
	Three Months Ended June 30, 2023						Six Months Ended June 30, 2023
(Dollars in millions)	Corporate Securities		Asset Backed Securities		Foreign Corporate		Total		Corporate Securities		Asset Backed Securities		Foreign Corporate		Total
Beginning balance of fixed maturities	$	709	$	1,020	$	16	$	1,745	$	715	$	994	$	16	$	1,725
Total gains or (losses) (realized/unrealized)
Included in earnings	1		—		—		1		2		—		—		2
Included in other comprehensive income (loss)	(2)		(8)		—		(9)		(6)		10		—		4
Purchases, issuances and settlements	3		103		—		105		—		111		—		111
Transfers in (out) of Level 3 and reclassification of securities in/(out) investment categories	—		—		—		—		—		—		—		—
Ending balance of fixed maturities	$	711	$	1,115	$	16	$	1,842	$	711	$	1,115	$	16	$	1,842

The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

(Some amounts may not reconcile due to rounding.)


	Total Fixed Maturities - Available for Sale
	Three Months Ended June 30, 2022										Six Months Ended June 30, 2022
(Dollars in millions)	Corporate Securities		Asset Backed Securities		CMBS		Foreign Corporate		Total		Corporate Securities		Asset Backed Securities		CMBS		Foreign Corporate		Total
Beginning balance of fixed maturities	$	715	$	1,389	$	6	$	16	$	2,125	$	730	$	1,251	$	—	$	16	$	1,997
Total gains or (losses) (realized/unrealized)
Included in earnings	(5)		—		—		—		(4)		(3)		—		—		—		(3)
Included in other comprehensive income (loss)	(3)		(47)		—		(4)		(54)		(7)		(76)		—		(4)		(87)
Purchases, issuances and settlements	28		62		—		8		97		15		228		6		8		256
Transfers in (out) of Level 3 and reclassification of securities in/(out) investment categories	128		(148)		—		20		—		128		(148)		—		20		—
Ending balance of fixed maturities	$	862	$	1,255	$	6	$	40	$	2,163	$	862	$	1,255	$	6	$	40	$	2,163

The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date	$	(5)	$	8	$	—	$	—	$	2	$	(5)	$	8	$	—	$	—	$	3

(Some amounts may not reconcile due to rounding.)