Fair Value (Tables)

9 Months Ended

Sep. 30, 2020

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, 2020 and December 31, 2019 is as follows:


	Level I		Level II		Level III		Total
September 30, 2020
Assets:
Cash equivalents	$	1,764	$	—	$	—	$	1,764
Fixed maturity securities, available-for-sale:
United States Government securities	—		813		—		813
Government sponsored securities	—		81		—		81
Foreign government securities	—		292		—		292
States, municipalities and political subdivisions, tax-exempt	—		5,363		—		5,363
Corporate securities	—		10,258		313		10,571
Residential mortgage-backed securities	—		4,166		2		4,168
Commercial mortgage-backed securities	—		75		—		75
Other securities	—		1,897		5		1,902
Total fixed maturity securities, available-for-sale	—		22,945		320		23,265
Equity securities:
Exchange traded funds	2,646		—		—		2,646
Fixed maturity mutual funds	—		143		—		143
Common equity securities	197		28		—		225
Private equity securities	—		—		61		61
Total equity securities	2,843		171		61		3,075
Securities lending collateral	—		1,019		—		1,019
Derivatives	—		40		—		40
Total assets	$	4,607	$	24,175	$	381	$	29,163
Liabilities:
Derivatives	$	—	$	(1)	$	—	$	(1)
Total liabilities	$	—	$	(1)	$	—	$	(1)

December 31, 2019
Assets:
Cash equivalents	$	2,015	$	—	$	—	$	2,015
Fixed maturity securities, available-for-sale:
United States Government securities	—		525		—		525
Government sponsored securities	—		141		—		141
States, municipalities and political subdivisions, tax-exempt	—		4,851		—		4,851
Corporate securities	—		8,882		303		9,185
Residential mortgage-backed securities	—		3,730		2		3,732
Commercial mortgage-backed securities	—		86		—		86
Other securities	—		1,654		7		1,661
Total fixed maturity securities, available-for-sale	—		19,869		312		20,181
Equity securities:
Exchange traded funds	44		—		—		44
Fixed maturity mutual funds	—		643		—		643
Common equity securities	206		31		—		237
Private equity securities	—		—		85		85
Total equity securities	250		674		85		1,009
Securities lending collateral	—		353		—		353
Derivatives	—		23		—		23
Total assets	$	2,265	$	20,919	$	397	$	23,581
Liabilities:
Derivatives	$	—	$	(1)	$	—	$	(1)
Total liabilities	$	—	$	(1)	$	—	$	(1)

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, 2020 and 2019 is as follows:





	Corporate Securities		Residential Mortgage- backed Securities		Other Securities		Equity Securities		Total
Three Months Ended September 30, 2020
Beginning balance at July 1, 2020	$	314	$	2	$	5	$	62	$	383
Total (losses) gains:
Recognized in net income	(1)		—		—		(3)		(4)
Recognized in accumulated other comprehensive loss	14		—		—		—		14
Purchases	5		—		—		2		7
Sales	(5)		—		—		—		(5)
Settlements	(14)		—		—		—		(14)


Ending balance at September 30, 2020	$	313	$	2	$	5	$	61	$	381
Change in unrealized losses included in net income related to assets still held at September 30, 2020	$	—	$	—	$	—	$	(3)	$	(3)

Three Months Ended September 30, 2019
Beginning balance at July 1, 2019	$	297	$	3	$	11	$	305	$	616
Total (losses) gains:
Recognized in net income	(3)		—		—		(5)		(8)
Recognized in accumulated other comprehensive loss	12		—		—		—		12
Purchases	28		—		—		25		53
Sales	(9)		—		—		(19)		(28)
Settlements	(18)		—		—		—		(18)
Transfers into Level III	4		—		—		—		4

Ending balance at September 30, 2019	$	311	$	3	$	11	$	306	$	631
Change in unrealized losses included in net income related to assets still held at September 30, 2019	$	—	$	—	$	—	$	(4)	$	(4)

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, 2020 and 2019 is as follows:


	Corporate Securities		Residential Mortgage- backed Securities		Other Securities		Equity Securities		Total
Nine Months Ended September 30, 2020
Beginning balance at January 1, 2020	$	303	$	2	$	7	$	85	$	397
Total losses:
Recognized in net income	(2)		—		—		(19)		(21)
Recognized in accumulated other comprehensive loss	(3)		—		—		—		(3)
Purchases	44		—		—		17		61
Sales	(9)		—		—		(22)		(31)
Settlements	(33)		—		(2)		—		(35)
Transfers into Level III	13		—		—		—		13

Ending balance at September 30, 2020	$	313	$	2	$	5	$	61	$	381
Change in unrealized losses included in net income related to assets still held at September 30, 2020	$	—	$	—	$	—	$	(20)	$	(20)

Nine Months Ended September 30, 2019
Beginning balance at January 1, 2019	$	287	$	6	$	17	$	313	$	623
Total (losses) gains:
Recognized in net income	(7)		—		—		(5)		(12)
Recognized in accumulated other comprehensive loss	14		—		—		—		14
Purchases	91		—		2		46		139
Sales	(11)		—		—		(48)		(59)
Settlements	(58)		(1)		(2)		—		(61)
Transfers into Level III	4		—		3		—		7
Transfers out of Level III	(9)		(2)		(9)		—		(20)
Ending balance at September 30, 2019	$	311	$	3	$	11	$	306	$	631
Change in unrealized losses included in net income related to assets still held at September 30, 2019	$	—	$	—	$	—	$	(4)	$	(4)

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, 2020 and December 31, 2019 is as follows:


	Carrying Value		Estimated Fair Value
			Level I		Level II		Level III		Total
September 30, 2020
Assets:
Other invested assets	$	4,170	$	—	$	—	$	4,170	$	4,170
Liabilities:
Debt:
Short-term borrowings	150		—		150		—		150


Notes	20,574		—		23,714		—		23,714
Convertible debentures	119		—		656		—		656

December 31, 2019
Assets:
Other invested assets	$	4,258	$	—	$	—	$	4,258	$	4,258
Liabilities:
Debt:
Short-term borrowings	700		—		700		—		700
Commercial paper	400		—		400		—		400
Notes	18,840		—		20,470		—		20,470
Convertible debentures	145		—		904		—		904