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Fair Value (Tables)
 9 Months Ended
Sep. 30, 2023
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Fair Value on Recurring Basis
Assets and liabilities measured at fair value on a recurring basis are summarized in the following tables. Corporate bonds and other includes obligations of the United States of America (“U.S.”) Treasury, government-sponsored enterprises, foreign governments and redeemable preferred stock.

September 30, 2023
Level 1
Level 2
Level 3
Total
(In millions)    
     
Fixed maturity securities:    
Corporate bonds and other$159 $22,214 $945 $23,318 
States, municipalities and political subdivisions6,993 41 7,034 
Asset-backed6,605 897 7,502 
Fixed maturities available-for-sale159 35,812 1,883 37,854 
Fixed maturities trading387 2 389 
Total fixed maturities$546 $35,814 $1,883 $38,243 
 
Equity securities$605 $427 $23 $1,055 
Short term and other3,773 35 3,808 
Receivables18 18 
Payable to brokers(87)(87)
December 31, 2022
Fixed maturity securities:
Corporate bonds and other$120 $21,187 $810 $22,117 
States, municipalities and political subdivisions8,274 43 8,317 
Asset-backed6,405 788 7,193 
Fixed maturities available-for-sale120 35,866 1,641 37,627 
Fixed maturities trading1 69 70 
Total fixed maturities$121 $35,935 $1,641 $37,697 
Equity securities$669 $435 $35 $1,139 
Short term and other4,539 167 4,706 
Receivables19 19 
Payable to brokers(82)(82)
Reconciliations of Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs
The following tables present reconciliations for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2023 and 2022:

Net Realized Investment Gains (Losses) and Net Change in Unrealized Investment Gains (Losses)
Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at September 30
Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at September 30
2023Balance, July 1
Included in Net Income
Included in OCIPurchases
Sales
Settlements
Transfers into
Level 3
Transfers out of Level 3
Balance, September 30
(In millions)           
            
Fixed maturity securities:           
Corporate bonds and other$971 $(36)$29 $(19)$945 $(36)
States, municipalities and political
 subdivisions43 (2)41 (2)
Asset-backed883 $1 (28)61 (13)$(7)897 (28)
Fixed maturities available-for-sale$1,897 $1 $(66)$90 $— $(32)$— $(7)$1,883 $— $(66)
 
Equity securities$26 $(1)$(2)$23 $(1)
Net Realized Investment Gains (Losses) and Net Change in Unrealized Investment Gains (Losses)
Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at September 30
Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at September 30
2022Balance, July 1Included in Net Income Included in OCIPurchasesSales Settlements Transfers into
Level 3		Transfers out of Level 3
Balance, September 30
(In millions)           
            
Fixed maturity securities:
Corporate bonds and other$846 $1 $(50)$9 $(4)$802 $(51)
States, municipalities and political
 subdivisions46 (4)42 (4)
Asset-backed641 7 (38)116 (14)$47 $(43)716 (38)
Fixed maturities available-for-sale$1,533 $8 $(92)$125 $— $(18)$47 $(43)$1,560 $— $(93)
 
Equity securities$47 $(7)$(10)$30 $(7)

Net Realized Investment Gains (Losses) and Net Change in Unrealized Investment Gains (Losses)
Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at September 30
Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at September 30
2023Balance, January 1
Included in Net Income
Included in OCIPurchases
Sales
Settlements
Transfers into
Level 3
Transfers out of Level 3
Balance, September 30
(In millions)           
            
Fixed maturity securities:           
Corporate bonds and other$810 $(27)$178 $(27)$11 $945 $(27)
States, municipalities and political
 subdivisions43 (2)41 (2)
Asset-backed788 $10 (28)203 (39)23 $(60)897 (28)
Fixed maturities available-for-sale$1,641 $10 $(57)$381 $— $(66)$34 $(60)$1,883 $— $(57)
 
Equity securities$35 $(8)$(4)$23 $(8)
Net Realized Investment Gains (Losses) and Net Change in Unrealized Investment Gains (Losses)
Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at September 30
Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at September 30
2022Balance, January 1Included in Net Income Included in OCIPurchasesSales Settlements Transfers into
 Level 3		Transfers out of Level 3
Balance, September 30
(In millions)          
          
Fixed maturity securities:          
Corporate bonds and other$937 $(1)$(203)$127 $(5)$(63)$10 $802 $(203)
States, municipalities and political
subdivisions56 (14)42 (14)
Asset-backed556 18 (122)348 (2)(54)66 $(94)716 (121)
Fixed maturities available-for-sale$1,549 $17 $(339)$475 $(7)$(117)$76 $(94)$1,560 $— $(338)
 
Equity securities$29 $(7)$12 $(3)$9 $(10)$30 $(8)

Net investment gains and losses are reported in Net income as follows:

Major Category of Assets and LiabilitiesConsolidated Condensed Statements of Operations Line Items
  
Fixed maturity securities available-for-saleInvestment gains (losses)
Fixed maturity securities tradingNet investment income
Equity securitiesInvestment gains (losses) and Net investment income
Other invested assetsInvestment gains (losses) and Net investment income
Derivative financial instruments held in a trading portfolioNet investment income
Derivative financial instruments, otherInvestment gains (losses) and Operating revenues and other
Significant Unobservable Inputs
The following tables present quantitative information about the significant unobservable inputs utilized in the fair value measurement of Level 3 assets. Valuations for assets and liabilities not presented in the tables below are primarily based on broker/dealer quotes for which there is a lack of transparency as to inputs used to develop the valuations. The quantitative detail of unobservable inputs from these broker quotes is neither provided nor reasonably available. The weighted average rate is calculated based on fair value.

September 30, 2023Estimated
Fair Value		Valuation TechniquesUnobservable InputsRange (Weighted Average)
 (In millions)  
    
Fixed maturity securities$1,359 Discounted cash flowCredit spread1 %—7 %(2 %)
   
December 31, 2022  
   
Fixed maturity securities$1,177 Discounted cash flowCredit spread1 %—8 %(2 %)
Financial Assets and Liabilities not Measured at Fair Value
The carrying amount, estimated fair value and the level of the fair value hierarchy of the financial assets and liabilities which are not measured at fair value on the Consolidated Condensed Balance Sheets are presented in the following tables. The carrying amounts and estimated fair values of short term debt and long term debt exclude finance lease obligations. The carrying amounts reported on the Consolidated Condensed Balance Sheets for cash and short term investments not carried at fair value and certain other assets and liabilities approximate fair value due to the short term nature of these items.

Carrying AmountEstimated Fair Value
September 30, 2023Level 1Level 2Level 3Total
(In millions)     
      
Assets:     
Other invested assets, primarily mortgage loans$995 $929 $929 
 
Liabilities:
Short term debt1,260 $786 469 1,255 
Long term debt7,921 6,867 401 7,268 
 
December 31, 2022
 
Assets:
Other invested assets, primarily mortgage loans$1,040 $973 $973 
 
Liabilities:
Short term debt853 $744 111 855 
Long term debt8,160 7,035 586 7,621