Equity Securities

3 Months Ended

Mar. 31, 2022

Investments Debt And Equity Securities [Abstract]

Equity Securities

Note 4 – Equity Securities

Investments in equity securities, by classification, are summarized as follows:

(in millions)	March 31, 2022		December 31, 2021
Marketable equity securities	$	573	$	657
Non-marketable equity securities		456		441
Equity method investments		65		78
	$	1,094	$	1,176

Investments in marketable equity securities are summarized as follows:

(in millions)	Cost		Unrealized gains (losses)			Estimated fair value
March 31, 2022
Common stocks	$	399	$	158		$	557
Preferred stocks		17		(1	)		16
	$	416	$	157		$	573
December 31, 2021
Common stocks	$	418		222			640
Preferred stocks		17	$	—		$	17
	$	435	$	222		$	657

Net losses of $65 million and net gains of $19 million resulting from changes in the fair values of marketable equity securities were recognized for the three months ended March 31, 2022 and 2021, respectively, which included net unrealized losses of $65 million and net unrealized gains of $18 million on securities still held at March 31, 2022 and 2021, respectively. Included in net investment losses during the three months ended March 31, 2022, was an unrealized loss of $44 million related to the Company’s investment in Offerpad Solutions Inc., a tech-enabled real estate company.  Net gains and losses resulting from changes in the fair values of marketable equity securities are recognized in net investment gains/losses on the condensed consolidated statements of income.

Investments in non-marketable equity securities are summarized as follows:

(in millions)	Cost			Unrealized gains	Carrying amount
March 31, 2022	$	241	$	215	$	456
December 31, 2021	$	215	$	226	$	441

Net unrealized losses of $11 million and net unrealized gains of $42 million were recognized during the three months ended March 31, 2022 and 2021, respectively, related to investments in private venture-stage companies. All such unrealized losses and gains related to securities still held at March 31, 2022 and 2021. Included in unrealized losses during the three months ended March 31, 2022, was an unrealized loss of $11 million related to the Company’s investment in a tech-enabled real estate company.

During the three months ended March 31, 2022, the Company realized a gain of $51 million and cash proceeds of $63 million related to the sale of an investment in a title insurance business.  

Net gains and losses on non-marketable equity securities are recognized in net investment gains/losses on the condensed consolidated statements of income.