Fair Value (Tables)

9 Months Ended

Sep. 30, 2018

Fair Value Measurements By Level For Assets Measured At Fair Value On A Recurring Basis

A summary of fair value measurements by level for assets and liabilities measured at fair value on a recurring basis at September 30, 2018 and December 31, 2017 is as follows:



	Level I		Level II			Level III		Total
September 30, 2018
Assets:
Cash equivalents	$	1,828	$	—		$	—	$	1,828
Fixed maturity securities, available-for-sale:
United States Government securities	—		625			—		625
Government sponsored securities	—		101			—		101
States, municipalities and political subdivisions, tax-exempt	—		4,964			—		4,964
Corporate securities	2		7,947			307		8,256
Residential mortgage-backed securities	—		2,689			4		2,693
Commercial mortgage-backed securities	—		66			—		66
Other securities	—		1,164			17		1,181
Total fixed maturity securities, available-for-sale	2		17,556			328		17,886
Equity securities:
Exchange traded funds	487		—			—		487
Fixed maturity mutual funds	—		611			—		611
Common equity securities	808		82			—		890
Private equity securities	—		—			318		318
Total equity securities	1,295		693			318		2,306
Other invested assets, current	21		—			—		21
Securities lending collateral	408		333			—		741
Derivatives	—		10			—		10
Total assets	$	3,554	$	18,592		$	646	$	22,792
Liabilities:
Derivatives	$	—	$	(21	)	$	—	$	(21	)
Total liabilities	$	—	$	(21	)	$	—	$	(21	)

December 31, 2017
Assets:
Cash equivalents	$	1,956	$	—		$	—	$	1,956
Fixed maturity securities, available-for-sale:
United States Government securities	—		645			—		645
Government sponsored securities	—		90			—		90
States, municipalities and political subdivisions, tax-exempt	—		6,035			—		6,035
Corporate securities	25		7,232			229		7,486
Residential mortgage-backed securities	—		2,534			5		2,539
Commercial mortgage-backed securities	—		79			—		79
Other securities	75		973			16		1,064
Total fixed maturity securities, available-for-sale	100		17,588			250		17,938
Equity securities:
Exchange traded funds	1,300		—			—		1,300
Fixed maturity mutual funds	—		791			—		791
Common equity securities	1,147		107			—		1,254
Private equity securities	—		—			287		287
Total equity securities	2,447		898			287		3,632
Other invested assets, current	17		—			—		17
Securities lending collateral	214		241			—		455
Derivatives	—		3			—		3
Total assets	$	4,734	$	18,730		$	537	$	24,001
Liabilities:
Derivatives	$	—	$	(21	)	$	—	$	(21	)
Total liabilities	$	—	$	(21	)	$	—	$	(21	)

Reconciliation Of The Beginning And Ending Balances Of Assets Measured At Fair Value On A Recurring Basis Using Level III Inputs

A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using Level III inputs for the three months ended September 30, 2018 and 2017 is as follows:



	Corporate Securities			Residential Mortgage- backed Securities		Other Securities			Equity Securities			Total
Three Months Ended September 30, 2018
Beginning balance at July 1, 2018	$	304		$	4	$	26		$	312		$	646
Total gains (losses):
Recognized in net income	—			—		—			4			4
Recognized in accumulated other comprehensive loss	(1		)	—		—			—			(1		)
Purchases	32			—		3			5			40
Sales	(2		)	—		—			(3		)	(5		)
Settlements	(30		)	—		—			—			(30		)
Transfers into Level III	6			—		1			—			7
Transfers out of Level III	(2		)	—		(13		)	—			(15		)
Ending balance at September 30, 2018	$	307		$	4	$	17		$	318		$	646
Change in unrealized gains included in net income related to assets still held at September 30, 2018	$	—		$	—	$	—		$	9		$	9

Three Months Ended September 30, 2017
Beginning balance at July 1, 2017	$	238		$	3	$	35		$	244		$	520
Total gains (losses):
Recognized in net income	—			—		—			—			—
Recognized in accumulated other comprehensive loss	(1		)	—		—			6			5
Purchases	11			2		5			30			48
Sales	(3		)	—		—			—			(3		)
Settlements	(14		)	—		(5		)	—			(19		)
Transfers into Level III	—			—		4			—			4
Transfers out of Level III	(1		)	—		(27		)	—			(28		)
Ending balance at September 30, 2017	$	230		$	5	$	12		$	280		$	527
Change in unrealized losses included in net income related to assets still held at September 30, 2017	$	(1	)	$	—	$	—		$	—		$	(1	)

A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using Level III inputs for the nine months ended September 30, 2018 and 2017 is as follows:



	Corporate Securities			Residential Mortgage- backed Securities			Other Securities			Equity Securities			Total
Nine Months Ended September 30, 2018
Beginning balance at January 1, 2018	$	229		$	5		$	16		$	287		$	537
Total gains (losses):
Recognized in net income	1			—			—			(228		)	(227		)
Recognized in accumulated other comprehensive loss	(3		)	—			—			—			(3		)
Purchases	94			—			12			263			369
Sales	(17		)	—			—			(4		)	(21		)
Settlements	(60		)	(1		)	(1		)	—			(62		)
Transfers into Level III	65			—			5			—			70
Transfers out of Level III	(2		)	—			(15		)	—			(17		)
Ending balance at September 30, 2018	$	307		$	4		$	17		$	318		$	646
Change in unrealized gains included in net income related to assets still held at September 30, 2018	$	—		$	—		$	—		$	27		$	27

Nine Months Ended September 30, 2017
Beginning balance at January 1, 2017	$	238		$	12		$	43		$	188		$	481
Total (losses) gains:
Recognized in net income	(1		)	—			—			—			(1		)
Recognized in accumulated other comprehensive loss	3			—			—			6			9
Purchases	72			3			36			87			198
Sales	(43		)	(5		)	(1		)	(1		)	(50		)
Settlements	(50		)	—			(6		)	—			(56		)
Transfers into Level III	13			1			6			—			20
Transfers out of Level III	(2		)	(6		)	(66		)	—			(74		)
Ending balance at September 30, 2017	$	230		$	5		$	12		$	280		$	527
Change in unrealized losses included in net income related to assets still held at September 30, 2017	$	(3	)	$	—		$	—		$	—		$	(3	)

Carrying And Fair Values By Level Of Financial Instruments Not Recorded At Fair Value On Consolidated Balance Sheet

A summary of the estimated fair values by level of each class of financial instrument that is recorded at its carrying value on our consolidated balance sheets at September 30, 2018 and December 31, 2017 is as follows:



	Carrying Value		Estimated Fair Value
			Level I		Level II		Level III		Total
September 30, 2018
Assets:
Other invested assets, long-term	$	3,572	$	—	$	—	$	3,572	$	3,572
Liabilities:
Debt:
Short-term borrowings	1,270		—		1,270		—		1,270
Commercial paper	750		—		750		—		750
Notes	17,160		—		17,178		—		17,178
Convertible debentures	239		—		1,363		—		1,363

December 31, 2017
Assets:
Other invested assets, long-term	$	3,344	$	—	$	—	$	3,344	$	3,344
Liabilities:
Debt:
Short-term borrowings	1,275		—		1,275		—		1,275
Commercial paper	804		—		804		—		804
Notes	17,593		—		18,815		—		18,815
Convertible debentures	260		—		1,216		—		1,216