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Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2020
Fair Value Disclosures [Abstract]  
Assets and liabilities measured at fair value
Assets and liabilities measured and carried at fair value in the financial statements are summarized below (in millions):
Level 1Level 2Level 3Total
December 31, 2020
Assets:
Available for sale (“AFS”) fixed maturities:
U.S. Government and government agencies$201 $26 $15 $242 
States, municipalities and political subdivisions— 5,630 103 5,733 
Foreign government— 211 — 211 
Residential MBS— 2,890 165 3,055 
Commercial MBS— 777 13 790 
Collateralized loan obligations— 4,489 64 4,553 
Other asset-backed securities— 5,850 1,373 7,223 
Corporate and other44 19,873 1,483 21,400 
Total AFS fixed maturities245 39,746 3,216 43,207 
Trading fixed maturities— 66 — 66 
Equity securities1,096 98 469 1,663 
Equity index call options— 825 — 825 
Assets of managed investment entities (“MIE”)217 4,733 21 4,971 
Variable annuity assets (separate accounts) (*)— 664 — 664 
Other assets — derivatives— 102 — 102 
Total assets accounted for at fair value$1,558 $46,234 $3,706 $51,498 
Liabilities:
Liabilities of managed investment entities$208 $4,543 $20 $4,771 
Derivatives in annuity benefits accumulated— — 3,933 3,933 
Other liabilities — derivatives— 10 — 10 
Total liabilities accounted for at fair value$208 $4,553 $3,953 $8,714 
December 31, 2019
Assets:
Available for sale fixed maturities:
U.S. Government and government agencies$151 $43 $15 $209 
States, municipalities and political subdivisions— 6,858 105 6,963 
Foreign government— 172 — 172 
Residential MBS— 2,987 173 3,160 
Commercial MBS— 892 35 927 
Collateralized loan obligations— 4,265 15 4,280 
Other asset-backed securities— 5,842 1,286 7,128 
Corporate and other29 21,879 1,758 23,666 
Total AFS fixed maturities180 42,938 3,387 46,505 
Trading fixed maturities2 111 — 113 
Equity securities1,433 67 437 1,937 
Equity index call options— 924 — 924 
Assets of managed investment entities213 4,506 17 4,736 
Variable annuity assets (separate accounts) (*)— 628 — 628 
Other assets — derivatives— 50 — 50 
Total assets accounted for at fair value$1,828 $49,224 $3,841 $54,893 
Liabilities:
Liabilities of managed investment entities$206 $4,349 $16 $4,571 
Derivatives in annuity benefits accumulated— — 3,730 3,730 
Other liabilities — derivatives— 10 — 10 
Total liabilities accounted for at fair value$206 $4,359 $3,746 $8,311 
(*)Variable annuity liabilities equal the fair value of variable annuity assets.
Unobservable inputs used by management in determining fair value of embedded derivatives The following table presents information about the unobservable inputs used by management in determining fair value of these Level 3 liabilities. See Note F — “Derivatives.”
Unobservable InputRange
Adjustment for insurance subsidiary’s credit risk
0.2% – 2.2% over the risk-free rate
Risk margin for uncertainty in cash flows
0.99% reduction in the discount rate
Surrenders
4% – 23% of indexed account value
Partial surrenders
2% – 11% of indexed account value
Annuitizations
0.1% – 1% of indexed account value
Deaths
1.7% – 13.9% of indexed account value
Budgeted option costs
2.2% – 2.9% of indexed account value
Changes in asset balances of Level 3 financial assets
Changes in balances of Level 3 financial assets and liabilities carried at fair value during 2020, 2019 and 2018 are presented below (in millions). The transfers into and out of Level 3 were due to changes in the availability of market observable inputs and $29 million of equity securities transferred into Level 3 in 2018 related to a small number of limited partnerships and similar investments carried at cost under the prior guidance that are carried at fair value through net earnings under new guidance adopted on January 1, 2018, as discussed in Note A — “Accounting Policies — Investments.” All transfers are reflected in the table at fair value as of the end of the reporting period.
Total realized/unrealized
gains (losses) included in
Balance at December 31, 2019Net
earnings		Other
comprehensive
income (loss)		Purchases
and
issuances		Sales and
settlements		Transfer
into
Level 3		Transfer
out of
Level 3		Balance at December 31, 2020
AFS fixed maturities:
U.S. government agency
$15 $4 $(4)$— $— $— $— $15 
State and municipal105 — 5 — (5)— (2)103 
Residential MBS173 (7)(8)— (19)58 (32)165 
Commercial MBS35 — 1 — (3)2 (22)13 
Collateralized loan obligations
15 (5)22 — — 187 (155)64 
Other asset-backed securities
1,286 (17)20 423 (375)215 (179)1,373 
Corporate and other1,758 2 33 283 (185)133 (541)1,483 
Total AFS fixed maturities
3,387 (23)69 706 (587)595 (931)3,216 
Equity securities437 (13)— 73 (19)17 (26)469 
Assets of MIE17 (6)— 2 — 8 — 21 
Total Level 3 assets
$3,841 $(42)$69 $781 $(606)$620 $(957)$3,706 
Embedded derivatives (a)$(3,730)$(283)$— $(242)$322 $— $— $(3,933)
Total Level 3 liabilities (b)
$(3,730)$(283)$— $(242)$322 $— $— $(3,933)
(a)Total realized/unrealized gains (losses) included in net earnings for the embedded derivatives reflects a favorable adjustment related to the unlocking of actuarial assumptions of $240 million in 2020.
(b)As previously discussed, these tables exclude the portion of MIE liabilities allocated to Level 3, which are derived from the fair value of MIE assets.
Total realized/unrealized
gains (losses) included in
Balance at December 31, 2018Net
earnings		Other
comprehensive
income (loss)		Purchases
and
issuances		Sales and
settlements		Transfer
into
Level 3		Transfer
out of
Level 3		Balance at December 31, 2019
AFS fixed maturities:
U.S. government agency
$9 $— $7 $— $(1)$— $— $15 
State and municipal59 — 5 — (3)55 (11)105 
Residential MBS197 6 (3)— (20)48 (55)173 
Commercial MBS56 2 — — (12)4 (15)35 
Collateralized loan obligations
116 (5)5 — — 28 (129)15 
Other asset-backed securities
731 — 6 787 (192)23 (69)1,286 
Corporate and other1,996 (3)55 738 (335)30 (723)1,758 
Total AFS fixed maturities
3,164 — 75 1,525 (563)188 (1,002)3,387 
Equity securities336 (5)— 52 (2)56 — 437 
Assets of MIE21 (5)— 1 — — — 17 
Total Level 3 assets
$3,521 $(10)$75 $1,578 $(565)$244 $(1,002)$3,841 
Embedded derivatives (a)$(2,720)$(919)$— $(333)$242 $— $— $(3,730)
Total Level 3 liabilities (b)
$(2,720)$(919)$— $(333)$242 $— $— $(3,730)
(a)Total realized/unrealized gains (losses) included in net earnings for the embedded derivatives reflects a favorable adjustment related to the unlocking of actuarial assumptions of $181 million in 2019.
(b)As previously discussed, these tables exclude the portion of MIE liabilities allocated to Level 3, which are derived from the fair value of MIE assets.
Total realized/unrealized
gains (losses) included in
Balance at December 31, 2017Net
earnings		Other
comprehensive
income (loss)		Purchases
and
issuances		Sales and
settlements		Transfer
into
Level 3		Transfer
out of
Level 3		Balance at December 31, 2018
AFS fixed maturities:
U.S. government agency
$8 $— $— $— $— $1 $— $9 
State and municipal148 — (2)— (3)— (84)59 
Residential MBS122 (9)(4)— (21)130 (21)197 
Commercial MBS36 — — 20 — — — 56 
Collateralized loan obligations
200 (3)(13)35 (20)3 (86)116 
Other asset-backed securities
544 — (2)391 (228)79 (53)731 
Corporate and other1,044 (10)(18)1,221 (204)27 (64)1,996 
Total AFS fixed maturities
2,102 (22)(39)1,667 (476)240 (308)3,164 
Equity securities165 9 — 155 (6)30 (17)336 
Assets of MIE23 (8)— 6 — — — 21 
Total Level 3 assets
$2,290 $(21)$(39)$1,828 $(482)$270 $(325)$3,521 
Embedded derivatives (a)
$(2,542)$204 $— $(545)$163 $— $— $(2,720)
Total Level 3 liabilities (b)
$(2,542)$204 $— $(545)$163 $— $— $(2,720)
(a)Total realized/unrealized gains (losses) included in net earnings for the embedded derivatives includes losses related to the unlocking of actuarial assumptions of $44 million in 2018.
(b)As previously discussed, these tables exclude the portion of MIE liabilities allocated to Level 3, which are derived from the fair value of MIE assets.
Changes in liability balances of Level 3 financial liabilities
Changes in balances of Level 3 financial assets and liabilities carried at fair value during 2020, 2019 and 2018 are presented below (in millions). The transfers into and out of Level 3 were due to changes in the availability of market observable inputs and $29 million of equity securities transferred into Level 3 in 2018 related to a small number of limited partnerships and similar investments carried at cost under the prior guidance that are carried at fair value through net earnings under new guidance adopted on January 1, 2018, as discussed in Note A — “Accounting Policies — Investments.” All transfers are reflected in the table at fair value as of the end of the reporting period.
Total realized/unrealized
gains (losses) included in
Balance at December 31, 2019Net
earnings		Other
comprehensive
income (loss)		Purchases
and
issuances		Sales and
settlements		Transfer
into
Level 3		Transfer
out of
Level 3		Balance at December 31, 2020
AFS fixed maturities:
U.S. government agency
$15 $4 $(4)$— $— $— $— $15 
State and municipal105 — 5 — (5)— (2)103 
Residential MBS173 (7)(8)— (19)58 (32)165 
Commercial MBS35 — 1 — (3)2 (22)13 
Collateralized loan obligations
15 (5)22 — — 187 (155)64 
Other asset-backed securities
1,286 (17)20 423 (375)215 (179)1,373 
Corporate and other1,758 2 33 283 (185)133 (541)1,483 
Total AFS fixed maturities
3,387 (23)69 706 (587)595 (931)3,216 
Equity securities437 (13)— 73 (19)17 (26)469 
Assets of MIE17 (6)— 2 — 8 — 21 
Total Level 3 assets
$3,841 $(42)$69 $781 $(606)$620 $(957)$3,706 
Embedded derivatives (a)$(3,730)$(283)$— $(242)$322 $— $— $(3,933)
Total Level 3 liabilities (b)
$(3,730)$(283)$— $(242)$322 $— $— $(3,933)
(a)Total realized/unrealized gains (losses) included in net earnings for the embedded derivatives reflects a favorable adjustment related to the unlocking of actuarial assumptions of $240 million in 2020.
(b)As previously discussed, these tables exclude the portion of MIE liabilities allocated to Level 3, which are derived from the fair value of MIE assets.
Total realized/unrealized
gains (losses) included in
Balance at December 31, 2018Net
earnings		Other
comprehensive
income (loss)		Purchases
and
issuances		Sales and
settlements		Transfer
into
Level 3		Transfer
out of
Level 3		Balance at December 31, 2019
AFS fixed maturities:
U.S. government agency
$9 $— $7 $— $(1)$— $— $15 
State and municipal59 — 5 — (3)55 (11)105 
Residential MBS197 6 (3)— (20)48 (55)173 
Commercial MBS56 2 — — (12)4 (15)35 
Collateralized loan obligations
116 (5)5 — — 28 (129)15 
Other asset-backed securities
731 — 6 787 (192)23 (69)1,286 
Corporate and other1,996 (3)55 738 (335)30 (723)1,758 
Total AFS fixed maturities
3,164 — 75 1,525 (563)188 (1,002)3,387 
Equity securities336 (5)— 52 (2)56 — 437 
Assets of MIE21 (5)— 1 — — — 17 
Total Level 3 assets
$3,521 $(10)$75 $1,578 $(565)$244 $(1,002)$3,841 
Embedded derivatives (a)$(2,720)$(919)$— $(333)$242 $— $— $(3,730)
Total Level 3 liabilities (b)
$(2,720)$(919)$— $(333)$242 $— $— $(3,730)
(a)Total realized/unrealized gains (losses) included in net earnings for the embedded derivatives reflects a favorable adjustment related to the unlocking of actuarial assumptions of $181 million in 2019.
(b)As previously discussed, these tables exclude the portion of MIE liabilities allocated to Level 3, which are derived from the fair value of MIE assets.
Total realized/unrealized
gains (losses) included in
Balance at December 31, 2017Net
earnings		Other
comprehensive
income (loss)		Purchases
and
issuances		Sales and
settlements		Transfer
into
Level 3		Transfer
out of
Level 3		Balance at December 31, 2018
AFS fixed maturities:
U.S. government agency
$8 $— $— $— $— $1 $— $9 
State and municipal148 — (2)— (3)— (84)59 
Residential MBS122 (9)(4)— (21)130 (21)197 
Commercial MBS36 — — 20 — — — 56 
Collateralized loan obligations
200 (3)(13)35 (20)3 (86)116 
Other asset-backed securities
544 — (2)391 (228)79 (53)731 
Corporate and other1,044 (10)(18)1,221 (204)27 (64)1,996 
Total AFS fixed maturities
2,102 (22)(39)1,667 (476)240 (308)3,164 
Equity securities165 9 — 155 (6)30 (17)336 
Assets of MIE23 (8)— 6 — — — 21 
Total Level 3 assets
$2,290 $(21)$(39)$1,828 $(482)$270 $(325)$3,521 
Embedded derivatives (a)
$(2,542)$204 $— $(545)$163 $— $— $(2,720)
Total Level 3 liabilities (b)
$(2,542)$204 $— $(545)$163 $— $— $(2,720)
(a)Total realized/unrealized gains (losses) included in net earnings for the embedded derivatives includes losses related to the unlocking of actuarial assumptions of $44 million in 2018.
(b)As previously discussed, these tables exclude the portion of MIE liabilities allocated to Level 3, which are derived from the fair value of MIE assets.
Fair value of financial instruments The carrying value and fair value of financial instruments that are not carried at fair value in the financial statements at December 31 are summarized below (in millions):
CarryingFair Value
ValueTotalLevel 1Level 2Level 3
2020
Financial assets:
Cash and cash equivalents$2,810 $2,810 $2,810 $— $— 
Mortgage loans1,623 1,652 — — 1,652 
Policy loans151 151 — — 151 
Total financial assets not accounted for at fair value
$4,584 $4,613 $2,810 $— $1,803 
Financial liabilities:
Annuity benefits accumulated (*)$41,460 $43,081 $— $— $43,081 
Long-term debt1,963 2,325 — 2,322 3 
Total financial liabilities not accounted for at fair value
$43,423 $45,406 $— $2,322 $43,084 
2019
Financial assets:
Cash and cash equivalents$2,314 $2,314 $2,314 $— $— 
Mortgage loans1,329 1,346 — — 1,346 
Policy loans164 164 — — 164 
Total financial assets not accounted for at fair value
$3,807 $3,824 $2,314 $— $1,510 
Financial liabilities:
Annuity benefits accumulated (*)$40,159 $40,182 $— $— $40,182 
Long-term debt1,473 1,622 — 1,619 3 
Total financial liabilities not accounted for at fair value
$41,632 $41,804 $— $1,619 $40,185 
(*)Excludes $1.11 billion and $247 million of life contingent annuities in the payout phase at December 31, 2020 and 2019, respectively.