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Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2020
Fair Value Disclosures [Abstract]  
Financial Assets and Financial Liabilities Carried at Fair Value
The following table provides information as of March 31, 2020 and December 31, 2019 about the Company’s financial assets and liabilities carried at fair value. Separate account assets are also recorded at fair value on the Company’s Consolidated Balance Sheets and are reported separately in the Separate Accounts section below as gains and losses related to these assets generally accrue directly to policyholders.
(In millions)
Quoted Prices in Active Markets for Identical Assets
(Level 1)
Significant Other Observable Inputs
(Level 2)		Significant Unobservable Inputs
(Level 3)		Total
As of March 31, 2020As of December 31, 2019As of March 31, 2020As of December 31, 2019As of March 31, 2020As of December 31, 2019As of March 31, 2020As of December 31, 2019
Financial assets at fair value
Debt securities
Federal government and agency$193  $197  $434  $536  $—  $—  $627  $733  
State and local government—  —  777  810  —  —  777  810  
Foreign government—  —  2,153  2,228  25  28  2,178  2,256  
Corporate—  —  17,944  19,063  559  357  18,503  19,420  
Mortgage and other asset-backed—  —  321  398  167  138  488  536  
Total debt securities193  197  21,629  23,035  751  523  22,573  23,755  
Equity securities (1)
6  7  130  72  15  32  151  111  
Short-term investments—  —  306  423  —  —  306  423  
Derivative assets—  —  239  83  —  —  239  83  
Real estate funds priced at NAV as a practical expedient (2)
179  184  
Financial liabilities at fair value
Derivative liabilities$—  $—  $19  $18  $—  $—  $19  $18  
(1)Excludes certain equity securities that have no readily determinable fair value.
(2)As a practical expedient, certain real estate funds are carried at fair value based on the Company’s ownership share of the equity of the investee (Net Asset Value (“NAV“)) including changes in the fair value of its underlying investments. The funds have a quarterly redemption frequency, 45-90 day redemption notice period and the Company has $57 million in unfunded commitments as of March 31, 2020
Fair Value and Significant Unobservable Inputs Used in Pricing Debt Securities
The following table summarizes the fair value and significant unobservable inputs used in pricing the following debt securities that were developed directly by the Company as of March 31, 2020 and December 31, 2019. The range and weighted average basis point amounts (“bps”) for liquidity and credit spreads (adjustment to discount rates) reflect the Company’s best estimates of the unobservable adjustments a market participant would make to calculate these fair values. The range and weighted averages have increased over the reported periods, resulting from growing concerns over the economic impacts related to COVID-19.
Corporate and government debt securities. The significant unobservable input used to value the following corporate and government debt securities is an adjustment for liquidity. An adjustment is needed to reflect current market conditions and issuer circumstances when there is limited trading activity for the security.
Mortgage and other asset-backed securities. The significant unobservable inputs used to value the following mortgage and other asset-backed securities are liquidity and weighting of credit spreads. An adjustment for liquidity is made as of the measurement date that considers current market conditions, issuer circumstances and complexity of the security structure when there is limited trading activity for the security. An adjustment to weight credit spreads is needed to value a more complex bond structure with multiple underlying collateral and no standard market valuation technique. The weighting of credit spreads is primarily based on the underlying collateral’s characteristics and their proportional cash flows supporting the bond obligations.
Fair Value as ofUnobservable Adjustment Range
(Weighted Average by Quantity)
as of
(Fair value in millions )March 31, 2020December 31, 2019Unobservable input March 31, 2020March 31, 2020December 31, 2019
Debt securities
Corporate and government debt securities$582  $385  Liquidity
70 - 2330 (370) bps
70 - 930 (280) bps
Mortgage and other asset-backed securities167  138  Liquidity
60 - 350 (120) bps
60 - 370 (70) bps
Weighting of credit spreads
350 - 580 (440) bps
240 - 460 (330) bps
Securities not priced by the Company (1)
2  —  
Total Level 3 debt securities$751  $523  
(1)The fair values for these securities use single, unadjusted non-binding broker quotes not developed directly by the Company.
Changes in Level 3 Financial Assets and Financial Liabilities Carried at Fair Value
The following table summarizes the changes in financial assets and financial liabilities classified in Level 3 for the three months ended March 31, 2020 and 2019. Gains and losses reported in these tables may include net changes in fair value that are attributable to both observable and unobservable inputs.

Debt and Equity Securities
For the Three Months Ended
March 31,
(In millions)20202019
Balance at January 1,$555  $410  
Total (losses) included in shareholders’ net income(12) (1) 
Gains (losses) included in other comprehensive income(71) 7  
Gains (losses) required to adjust future policy benefits for settlement annuities (1)
(10) 2  
Purchases, sales and settlements
Purchases62  —  
Sales(12) —  
Settlements(2) (1) 
Total purchases, sales and settlements$48  $(1) 
Transfers into/(out of) Level 3
Transfers into Level 3348  20  
Transfers out of Level 3 (92) (1) 
Total transfers into/(out of) Level 3$256  $19  
Balance at March 31,$766  $436  
Total (losses) included in shareholders’ net income attributable to instruments held at the reporting date$(18) $(1) 
Change in unrealized gains or losses included in other comprehensive income for assets held at the end of the reporting period$(66) N/A  
(1)Amounts do not accrue to shareholders.
Fair Values of Separate Account Assets
Fair values of separate account assets at March 31, 2020 and December 31, 2019 were as follows:
(In millions)Quoted Prices in Active Markets for Identical Assets
(Level 1)		Significant Other Observable Inputs
(Level 2)		Significant Unobservable Inputs
(Level 3)		Total
March 31, 2020December 31, 2019March 31, 2020December 31, 2019March 31, 2020December 31, 2019March 31, 2020December 31, 2019
Guaranteed separate accounts (See Note 19)
$197  $219  $265  $271  $—  $—  $462  $490  
Non-guaranteed separate accounts (1)
1,160  1,450  4,966  5,522  322  263  6,448  7,235  
Subtotal$1,357  $1,669  $5,231  $5,793  $322  $263  $6,910  $7,725  
Non-guaranteed separate accounts priced at NAV as a practical expedient (1)
742  756  
Total$7,652  $8,481  
Separate account assets of business classified as held for sale(12) (16) 
Separate account assets per Consolidated Balance Sheets$7,640  $8,465  
(1)Non-guaranteed separate accounts included $3.5 billion as of March 31, 2020 and $4.0 billion as of December 31, 2019 in assets supporting the Company’s pension plans, including $0.3 billion classified in Level 3 as of March 31, 2020 and $0.2 billion classified in Level 3 as of December 31, 2019.
Additional Information on Separate Account Assets Priced at NAV The following table provides additional information on these investments.
Fair Value as ofUnfunded Commitment as of March 31, 2020Redemption Frequency
(if currently eligible)		Redemption Notice
Period
(In millions)March 31, 2020December 31, 2019
Securities partnerships$513  $531  $302  Not applicableNot applicable
Real estate funds224  220  —  Quarterly
30 - 90 days
Hedge funds5  5  —  Up to annually, varying by fund
30 - 90 days
Total$742  $756  $302  
Fair Value Disclosures for Financial Instruments Not Carried at Fair Value
The following table includes the Company’s financial instruments not recorded at fair value that are subject to fair value disclosure requirements at March 31, 2020 and December 31, 2019. In addition to universal life products and finance leases, financial instruments that are carried in the Company’s Consolidated Financial Statements at amounts that approximate fair value are excluded from the following table.
March 31, 2020December 31, 2019
(In millions)Classification in Fair Value HierarchyFair ValueCarrying ValueFair ValueCarrying Value
Commercial mortgage loansLevel 3$1,958  $1,935  $1,989  $1,947  
Long-term debt, including current maturities, excluding finance leasesLevel 2$38,134  $35,634  $39,439  $36,375