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Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2020
Fair Value Disclosures [Abstract]  
Financial Assets and Financial Liabilities Carried at Fair Value
The following table provides information as of September 30, 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 September 30, 2020As of December 31, 2019As of September 30, 2020As of December 31, 2019As of September 30, 2020As of December 31, 2019As of September 30, 2020As of December 31, 2019
Financial assets at fair value
Debt securities
Federal government and agency$183 $197 $451 $536 $— $— $634 $733 
State and local government— — 713 810 — — 713 810 
Foreign government— — 2,381 2,228 21 28 2,402 2,256 
Corporate
— — 19,662 19,063 747 357 20,409 19,420 
Mortgage and other asset-backed— — 368 398 147 138 515 536 
Total debt securities183 197 23,575 23,035 915 523 24,673 23,755 
Equity securities (1)
1 7 135 72 31 32 167 111 
Short-term investments— — 458 423 — — 458 423 
Derivative assets— — 104 83 — — 104 83 
Real estate funds priced at NAV as a practical expedient (2)
165 184 
Financial liabilities at fair value
Derivative liabilities$— $— $21 $18 $— $— $21 $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 Company has $50 million in unfunded commitments in these funds as of September 30, 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 September 30, 2020 and December 31, 2019. The range and weighted average basis point (“bps”) amounts 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. These liquidity and credit spreads have increased over the reported periods, resulting from continued uncertainty 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. This 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 )September 30, 2020December 31, 2019Unobservable input September 30, 2020September 30, 2020December 31, 2019
Debt securities
Corporate and government debt securities$765 $385 Liquidity
60 - 1570 (410) bps
70 - 930 (280) bps
Mortgage and other asset-backed securities147 138 Liquidity
60 - 370 (80) bps
60 - 370 (70) bps
Weighting of credit spreads
320 - 650 (460) bps
240 - 460 (330) bps
Securities not priced by the Company (1)
3 — 
Total Level 3 debt securities$915 $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 tables summarize the changes in financial assets and financial liabilities classified in Level 3 for the three and nine months ended September 30, 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
September 30,		For the Nine Months Ended
September 30,
(In millions)2020201920202019
Balance at beginning of period$860 $431 $555 $410 
Total gains (losses) included in shareholders’ net income(1)(6)4 (7)
Gains (losses) included in other comprehensive income17 4 (42)16 
Gains (losses) required to adjust future policy benefits for settlement annuities (1)
7 1 4 3 
Purchases, sales and settlements
Purchases3 10 67 53 
Sales(1)— (13)— 
Settlements(8)(6)(15)(16)
Total purchases, sales and settlements$(6)$4 $39 $37 
Transfers into/(out of) Level 3
Transfers into Level 3102 80 629 113 
Transfers out of Level 3(33)— (243)(58)
Total transfers into/(out of) Level 3$69 $80 $386 $55 
Balance at September 30,
$946 $514 $946 $514 
Total gains (losses) included in shareholders’ net income attributable to instruments held at the reporting date$— $(6)$(2)$(8)
Change in unrealized gains or losses included in other comprehensive income for assets held at the end of the reporting period$17 N/A$(37)N/A
Fair Values of Separate Account Assets
Fair values of separate account assets at September 30, 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
September 30, 2020December 31, 2019September 30, 2020December 31, 2019September 30, 2020December 31, 2019September 30, 2020December 31, 2019
Guaranteed separate accounts (See Note 18)
$208 $219 $302 $271 $— $— $510 $490 
Non-guaranteed separate accounts (1)
1,541 1,450 5,508 5,522 335 263 7,384 7,235 
Subtotal$1,749 $1,669 $5,810 $5,793 $335 $263 $7,894 $7,725 
Non-guaranteed separate accounts priced at NAV as a practical expedient (1)
736 756 
Total$8,630 $8,481 
Separate account assets of business classified as held for sale(14)(16)
Separate account assets per Consolidated Balance Sheets$8,616 $8,465 
(1)Non-guaranteed separate accounts included $3.9 billion as of September 30, 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 September 30, 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 September 30, 2020Redemption Frequency
(if currently eligible)		Redemption Notice
Period
(In millions)September 30, 2020December 31, 2019
Securities partnerships$511 $531 $283 Not applicableNot applicable
Real estate funds221 220 — Quarterly
30 - 90 days
Hedge funds4 5 — Up to annually, varying by fund
30 - 90 days
Total$736 $756 $283 
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 September 30, 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.
September 30, 2020December 31, 2019
(In millions)Classification in Fair Value HierarchyFair ValueCarrying ValueFair ValueCarrying Value
Commercial mortgage loansLevel 3$2,033 $1,979 $1,989 $1,947 
Long-term debt, including current maturities, excluding finance leasesLevel 2$37,976 $32,972 $39,439 $36,375