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Investments
 12 Months Ended
Dec. 31, 2020
Investments [Abstract]  
Investment [Text Block] Investments
A summary of current and long-term fixed maturity securities, available-for-sale, at December 31, 2020 and 2019 is as follows:
Non-Credit
Component of
Impairment Recognized in
Accumulated
Other
Comprehensive
Loss
Cost or
Amortized
Cost		Gross
Unrealized
Gains		Gross Unrealized LossesAllowance For Credit LossesEstimated
Fair Value
 Less than
12 Months		12 Months
or Greater
December 31, 2020:
Fixed maturity securities:
United States Government securities$765 $11 $(2)$— $— $774 $— 
Government sponsored securities63 6 — — — 69 — 
Foreign government securities290 17 (2)— — 305 — 
States, municipalities and political subdivisions, tax-exempt5,185 395 (1)— — 5,579 — 
Corporate securities10,233 697 (20)(11)(7)10,892 (1)
Residential mortgage-backed securities4,208 154 (8)(9)— 4,345 (2)
Commercial mortgage-backed securities
73 3 (1)(3)— 72 — 
Other securities1,937 33 (5)(6)— 1,959 — 
Total fixed maturity securities$22,754 $1,316 $(39)$(29)$(7)$23,995 $(3)
December 31, 2019
Fixed maturity securities:
United States Government securities$524 $4 $(3)$— $— $525 $— 
Government sponsored securities136 5 — — — 141 — 
States, municipalities and political subdivisions, tax-exempt
4,592 262 (3)— — 4,851 — 
Corporate securities8,870 339 (9)(15)— 9,185 (3)
Residential mortgage-backed securities3,654 87 (6)(3)— 3,732 — 
Commercial mortgage-backed securities
84 2 — — — 86 — 
Other securities1,648 21 (3)(5)— 1,661 — 
Total fixed maturity securities$19,508 $720 $(24)$(23)$— $20,181 $(3)
For fixed maturity securities in an unrealized loss position at December 31, 2020 and 2019, the following table summarizes the aggregate fair values and gross unrealized losses by length of time those securities have continuously been in an unrealized loss position.
 Less than 12 Months12 Months or Greater
 Number of
Securities		Estimated
Fair Value		Gross
Unrealized
Loss		Number of
Securities		Estimated
Fair Value		Gross
Unrealized
Loss
(Securities are whole amounts)      
December 31, 2020:
Fixed maturity securities:
United States Government securities27 $301 $(2)— $— $— 
Government sponsored securities— — — 1 — — 
Foreign government securities55 35 (2)9 4 — 
States, municipalities and political subdivisions, tax-exempt
36 57 (1)1 3 — 
Corporate securities646 765 (20)150 169 (11)
Residential mortgage-backed securities224 442 (8)90 110 (9)
Commercial mortgage-backed securities6 16 (1)3 4 (3)
Other securities207 509 (5)79 179 (6)
Total fixed maturity securities1,201 $2,125 $(39)333 $469 $(29)
December 31, 2019
Fixed maturity securities:
United States Government securities
27 $250 $(3)2 $1 $— 
Government sponsored securities
14 12 — 3 1 — 
States, municipalities and political subdivisions, tax-exempt
114 306 (3)14 11 — 
Corporate securities
386 558 (9)224 286 (15)
Residential mortgage-backed securities
321 635 (6)189 237 (3)
Commercial mortgage-backed securities
1 3 — 4 8 — 
Other securities
166 415 (3)113 358 (5)
Total fixed maturity securities1,029 $2,179 $(24)549 $902 $(23)
Below are discussions by security type for unrealized losses and credit losses as of December 31, 2020:
Corporate securities: An allowance for credit losses on certain retail, travel and entertainment, energy, and basic materials sector fixed maturity corporate securities has been determined based on qualitative and quantitative factors including credit rating, decline in fair value and industry condition along with other available market data. With multiple risk factors present, these securities were reviewed for expected future cash flow to determine the portion of unrealized losses that were credit related and to record an allowance for credit losses. Unrealized losses on our other corporate securities were largely due to market conditions relating to the COVID-19 pandemic; however, qualitative factors did not indicate a credit loss as of December 31, 2020. We do not intend to sell these investments and it is likely we will not have to sell these investments prior to maturity or recovery of amortized cost.
As for the remaining securities shown in the table above, unrealized losses on these securities have not been recognized into income because we do not intend to sell these investments and it is likely that we will not be required to sell these investments prior to their anticipated recovery. The decline in fair value is largely due to changes in interest rates and other market conditions. We have evaluated these securities for any change in credit rating and have determined that no allowance is necessary. The fair value is expected to recover as the securities approach maturity.
The table below presents a roll-forward by major security type of the allowance for credit losses on fixed maturity securities available-for-sale held at period end for the year ended December 31, 2020:
Year Ended December 31, 2020Corporate SecuritiesForeign Government SecuritiesTotal
Allowance for credit losses:
Beginning balance$— $— $— 
Additions for securities for which no previous expected credit losses were recognized64 1 65 
Securities sold during the period(17)(1)(18)
Decreases to the allowance for credit losses on securities(40)— (40)
Total allowance for credit losses$7 $— $7 
The amortized cost and fair value of fixed maturity securities at December 31, 2020, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations.
Amortized
Cost		Estimated
Fair Value
Due in one year or less$592 $595 
Due after one year through five years5,981 6,261 
Due after five years through ten years6,874 7,296 
Due after ten years5,026 5,426 
Mortgage-backed securities4,281 4,417 
Total fixed maturity securities$22,754 $23,995 
Equity Securities
A summary of current equity securities at December 31, 2020 and 2019 is as follows:
December 31, 2020December 31, 2019
Equity Securities:
Exchange traded funds$1,154 $44 
Fixed maturity mutual funds144 643 
Common equity securities201 237 
Private equity securities60 85 
Total$1,559 $1,009 
Investment Income
The major categories of net investment income for the years ended December 31, 2020, 2019 and 2018 are as follows:
202020192018
Fixed maturity securities$725 $721 $681 
Equity securities71 100 86 
Cash equivalents28 64 51 
Other91 149 193 
Investment income915 1,034 1,011 
Investment expense(38)(29)(41)
Net investment income$877 $1,005 $970 
Investment Gains
Net realized investment gains/losses and the net change in unrealized appreciation/depreciation on investments for the years ended December 31, 2020, 2019 and 2018 are as follows:
202020192018
Net realized gains (losses):
Fixed maturity securities:
Gross realized gains from sales$175 $125 $85 
Gross realized losses from sales(105)(59)(116)
Impairment losses recognized in income(7)(13)(9)
Net realized gains (losses) from sales of fixed maturity securities63 53 (40)
Equity securities:
Gross realized gains269 147 77 
Gross realized losses(75)(84)(276)
Net realized gains (losses) on equity securities194 63 (199)
Other investments:
Gross realized gains from sales18 3 27 
Gross realized losses from sales— (1)— 
Impairment losses recognized in income(91)(34)(17)
Net realized gains (losses) from sales of other investments(73)(32)10 
Net realized gains (losses) on investments184 84 (229)
Change in net unrealized gains (losses) on investments:
Fixed maturity securities575 874 (529)
Equity securities— — — 
Other investments(5)— 5 
Total change in net unrealized gains (losses) on investments570 874 (524)
Deferred income tax (expense) benefit(142)(194)106 
Change in net unrealized gains (losses) on investments428 680 (418)
Net realized gains (losses) on investments and change in net unrealized gains (losses) on investments$612 $764 $(647)
The gains and losses related to equity securities for the years ended December 31, 2020 and 2019 are as follows:
202020192018
Net realized gains (losses) recognized on equity securities$194 $63 $(199)
Less: Net realized (gains) losses recognized on equity securities sold during the period(61)(39)57 
Unrealized gains (losses) recognized in income on equity securities still held at December 31$133 $24 $(142)
A primary objective in the management of our fixed maturity and equity portfolios is to maximize total return relative to underlying liabilities and respective liquidity needs. In achieving this goal, assets may be sold to take advantage of market conditions or other investment opportunities as well as tax considerations. Sales will generally produce realized gains and losses. In the ordinary course of business, we may sell securities at a loss for a number of reasons, including, but not limited to: (i) changes in the investment environment; (ii) expectations that the fair value could deteriorate further; (iii) desire to reduce exposure to an issuer or an industry; (iv) changes in credit quality; or (v) changes in expected cash flow.
Proceeds from sales, maturities, calls or redemptions of fixed maturity securities and the related gross realized gains and gross realized losses for the years ended December 31 are as follows:
202020192018
Proceeds$11,122 $8,351 $8,380 
Gross realized gains175 125 85 
Gross realized losses(105)(59)(116)
A significant judgment in the valuation of investments is the determination of when a credit loss has occurred. We follow a consistent and systematic process for recognizing impairments on securities that sustain credit declines in value. We have established a committee responsible for the impairment review process. The decision to impair a security incorporates both quantitative criteria and qualitative information. The impairment review process considers a number of factors including, but not limited to: (i) the extent to which the fair value is less than book value, (ii) the financial condition and near term prospects of the issuer, (iii) our intent and ability to retain impaired investments for a period of time sufficient to allow for any anticipated recovery in fair value, (iv) our intent to sell or the likelihood that we will need to sell a fixed maturity security before recovery of its amortized cost basis, (v) whether the debtor is current on interest and principal payments, (vi) the reasons for the decline in value (i.e., credit event compared to liquidity, general credit spread widening, currency exchange rate or interest rate factors) and (vii) general market conditions and industry or sector specific factors. For securities that are deemed to be credit impaired, an allowance is created.
Investment securities are exposed to various risks, such as interest rate, market and credit. Due to the level of risk associated with certain investment securities and the level of uncertainty related to changes in the value of investment securities, it is possible that changes in these risk factors in the near term could have a material adverse impact on our results of operations or shareholders’ equity.
At December 31, 2020 and 2019, there were no individual investments that exceeded 10% of shareholders’ equity.
At December 31, 2020 and 2019, there were three and zero, respectively, fixed maturity investments that did not produce income during the years then ended.
As of December 31, 2020 and 2019, we had committed approximately $1,320 and $999, respectively, to future capital calls from various third-party investments in exchange for an ownership interest in the related entities.
At December 31, 2020 and 2019, securities with carrying values of approximately $562 and $505, respectively, were deposited by our insurance subsidiaries under requirements of regulatory authorities.
Securities Lending Programs
The fair value of the collateral received at the time of the securities lending transactions amounted to $1,199 and $351 at December 31, 2020 and 2019, respectively. The value of the collateral represented 102% and 103% of the market value of the securities on loan at December 31, 2020 and 2019, respectively.
The remaining contractual maturities of our securities lending transactions at December 31, 2020 is as follows:
Overnight and Continuous
Securities lending transactions
Cash$1,056 
United States Government securities143 
Total$1,199