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Fair Value (Tables)
 12 Months Ended
Dec. 31, 2019
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 U.S. Treasury, government-sponsored enterprises, foreign governments and redeemable preferred stock.
December 31, 2019
 
Level 1
 
  
Level 2
 
  
Level 3
 
  
Total
 
(In millions)
 
 
  
 
  
 
  
 
Fixed maturity securities:
 
 
 
  
 
 
  
 
 
  
 
 
Corporate bonds and other
 
$
175
 
  
$
22,065
 
  
$
468
 
  
$
22,708
  
States, municipalities and political subdivisions
 
 
 
 
  
 
10,652
 
  
 
 
 
  
 
10,652
 
Asset-backed
 
 
 
 
  
 
8,662
 
  
 
165
 
  
 
8,827
 
                                 
Fixed maturities
available-for-sale
 
 
175
 
  
 
41,379
 
  
 
633
 
  
 
42,187
 
Fixed maturities trading
 
 
 
 
  
 
49
 
  
 
4
 
  
 
53
 
                                 
Total fixed maturities
 
$
175
 
  
$
41,428
 
  
$
637
 
  
$
42,240
 
                                 
Equity securities
 
$
629
 
  
$
658
 
  
$
19
 
  
$
1,306
 
Short term and other
 
 
3,138
 
  
 
1,383
 
  
 
 
 
  
 
4,521
  
Receivables
 
 
 
 
  
 
2
 
  
 
 
 
  
 
2
  
Payable to brokers
 
 
(18
)  
 
(10
)  
 
 
 
  
 
(28
)
 
                         
December 31, 2018
 
 
  
 
  
 
  
 
Fixed maturity securities:
   
     
     
     
 
Corporate bonds and other
  $
196
    $
19,392
    $
222
    $
19,810
 
 
 
 
  
States, municipalities and political subdivisions
   
     
10,748
     
     
10,748
 
 
 
 
  
Asset-backed
   
     
8,787
     
197
     
8,984
 
 
 
 
  
                                 
Fixed maturities
available-for-sale
   
196
     
38,927
     
419
     
39,542
 
 
 
 
  
Fixed maturities trading
   
     
151
     
6
     
157
 
 
 
 
  
                                 
Total fixed maturities
  $
196
    $
39,078
    $
425
    $
39,699
 
 
 
 
  
                                 
Equity securities
  $
704
    $
570
    $
19
    $
1,293
 
 
 
 
  
Short term and other
   
2,647
     
1,111
     
     
3,758
 
 
 
 
  
Receivables
   
     
11
     
     
11
 
 
 
 
  
Payable to brokers
   
(23
 )    
     
     
(23)
 
 
 
  
Reconciliations of Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs
The tables below present reconciliations for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2019 and 2018:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrealized
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gains
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrealized
 
 
(Losses)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gains
 
 
Recognized in
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Losses)
 
 
Other
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Recognized in
 
 
Comprehensive
 
 
 
 
Net Realized Investment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income
 
 
Income (Loss)
 
 
 
 
Gains (Losses) and Net
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Loss) on Level
 
 
on Level 3
 
 
 
 
Change in Unrealized
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3 Assets and
 
 
Assets and
 
 
 
 
Investment Gains (Losses)
 
 
 
 
 
 
 
 
Transfers
 
 
Transfers
 
 
 
 
Liabilities
 
 
Liabilities
 
 
Balance,
 
 
Included in
 
 
Included in
 
 
 
 
 
 
 
 
into
 
 
out of
 
 
Balance,
 
 
Held at
 
 
Held at
 
2019
 
January 1
 
 
Net Income
 
 
OCI
 
 
Purchases
 
 
Sales
 
 
Settlements
 
 
Level 3
 
 
Level 3
 
 
December 31
 
 
December 31
 
 
December 31
 
(In millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed maturity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate bonds and other
 
$
     
222
 
 
 
 
 
$
33
 
 
$
256
 
 
 
 
 
$
(11)
  
 
 
 
 
$
(32)
  
 
$
468
 
 
 
 
 
$
28
 
Asset-backed
 
 
197
 
 
 
 
 
 
8
 
 
 
48
 
 
 
 
 
 
(16)
  
 
$
45
 
 
 
(117)
  
 
 
165
 
 
 
 
 
 
7
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities
available-for-sale
 
 
419
 
 
$
-
 
 
 
 
41
 
 
 
304
 
 
$
-
 
 
 
 
(27)
  
 
 
45
 
 
 
(149)
  
 
 
633
 
 
$
-
 
 
 
 
35
 
Fixed maturities trading
 
 
6
 
 
 
(2)
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4
 
 
 
(2)
  
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
 
Total fixed maturities
 
$
425
 
 
$
(2)
  
 
$
41
 
 
$
304
 
 
$
-
 
 
 
$
(27)
  
 
$
45
 
 
$
(149)
  
 
$
637
 
 
$
(2)
  
 
$
35
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
 
Equity securities
 
$
19
 
 
$
(2)
  
 
 
 
 
$
2
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
19
 
 
$
(2)
  
 
 
 
 
  
   
   
   
   
   
   
   
   
   
   
Unrealized
 
  
   
   
   
   
   
   
   
   
   
   
Gains
 
  
   
   
   
   
   
   
   
   
   
Unrealized
   
(Losses)
 
  
   
   
   
   
   
   
   
   
   
Gains
   
Recognized in
 
  
   
   
   
   
   
   
   
   
   
(Losses)
   
Other
 
  
   
   
   
   
   
   
   
   
Recognized in
   
Comprehensive
 
  
   
Net Realized Investment
   
   
   
   
   
   
   
Net Income
   
Income (Loss)
 
  
   
Gains (Losses) and Net
   
   
   
   
   
   
   
(Loss) on Level
   
on Level 3
 
  
   
Change in Unrealized
    
   
   
   
   
   
   
3 Assets and
   
Assets and
 
  
   
Investment Gains (Losses)
   
   
   
   
Transfers
   
Transfers
   
   
Liabilities
   
Liabilities
 
  
Balance,
   
Included in
   
Included in
   
   
   
   
into
   
out of
   
Balance,
   
Held at
   
Held at
 
2018
 
January 1
   
Net Income
   
OCI
   
Purchases
   
Sales
   
Settlements
   
Level 3
   
Level 3
   
December 31
   
December 31
   
December 31
 
(In millions)
 
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
Fixed maturity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate bonds and other
 
$
98  
 
 
$
(1) 
  
 
$
(4)
 
 
  
 
$
117
 
 
$
(5)
  
 
$
(9)
  
 
$
35
 
 
$
(9)
  
 
$
222
      
 
 
 
 
 
$
(5
 ) 
States, municipalities and political subdivisions
 
 
1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
  
 
 
 
 
 
 
 
 
-
      
 
 
 
 
 
 
 
Asset-backed
 
  
335
 
 
 
5   
 
 
 
(8)
 
 
  
 
 
162
 
 
 
(72)
  
 
 
(64)
  
 
 
42
 
 
 
(203)
  
 
 
197
      
 
 
$
(2)
  
 
 
(4
 ) 
                                                                                         
Fixed maturities
available-for-sale
 
 
434
 
 
 
4
 
 
 
 
 
 
(12)
 
 
  
 
 
279
 
 
 
(77)
  
 
 
(74)
  
 
 
77
 
 
 
(212)
  
 
 
419
      
 
 
 
(2)
  
 
 
(9
 ) 
Fixed maturities trading
 
 
4
 
 
 
3
 
 
 
 
 
 
 
 
 
 
 
 
(1)
  
 
 
 
 
 
 
 
 
 
 
 
6
      
 
 
 
2 
 
 
 
 
                                                                                         
Total fixed maturities
 
$
438
 
 
$
7
 
 
 
 
 
$
(12)
 
 
  
 
$
279
 
 
$
(78)
  
 
$
(74
)
  
 
$
77
 
 
$
(212)
  
 
$
425
      
 
 
$
-
 
 
 
$
(9
 ) 
                                                                                         
Equity securities
 
$
22
 
 
$
(2)
 
 
  
 
 
 
 
 
 
 
$
(1)
  
 
 
 
 
 
 
 
 
 
 
$
19
      
 
 
$
(2)
  
 
 
 
Net investment gains and losses are reported in Net income as follows:
Major Category of Assets and Liabilities
 
Consolidated Statements of Income Line Items
 
 
 
Fixed maturity securities
available-for-sale
 
Investment gains (losses)
Fixed maturity securities trading
 
Net investment income
Equity securities
 
Investment gains (losses) and Net investment income
Other invested assets
 
Investment gains (losses) and Net investment income
Derivative financial instruments held in a trading portfolio
 
Net investment income
Derivative financial instruments, other
 
Investment gains (losses) and Operating revenues and other
Quantitative Information about Significant Unobservable Inputs Utilized by Company in Fair Value Measurements of Level 3 Assets
The following tables present quantitative information about the significant unobservable inputs utilized by the Company 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 to the Company. The weighted average rate is calculated based on fair value.
                                 
 
 
  
 
  
 
  
Range
 
 
Estimated
 
  
Valuation
 
  
Unobservable
 
  
(Weighted
 
December 31, 2019
 
Fair Value
 
  
Techniques
 
  
Inputs
 
  
Average)
 
 
(In millions)
 
  
 
  
 
  
 
Fixed maturity securities
   
$       
525
      
    
 
Discounted
cash
 
flow
 
  
 
Credit
 
spread
 
  
 
1
%
 
–
 
6%
 
(2%
)
  
                         
December 31, 2018
 
 
  
 
  
 
  
 
Fixed maturity securities
   
$       
228
        
      
Discounted
cash
 
flow
     
Credit spread
     
1% – 12% (3%
)
  
 
 
 
 
 
 
 
 
 
 
 
Carrying Amount, Estimated Fair Value and Level of Fair Value Hierarchy of Company's Financial Assets and Liabilities
The carrying amount, estimated fair value and the level of the fair value hierarchy of the Company’s financial assets and liabilities which are not measured at fair value on the Consolidated 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 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
 
  
Estimated Fair Value
 
December 31, 2019
 
Amount
 
  
Level 1
 
  
Level 2
 
  
Level 3
 
  
Total
 
(In millions)
 
 
  
 
  
 
  
 
  
 
Assets:
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
Other invested assets, primarily mortgage loans
 
$
994
 
  
 
 
 
  
 
 
 
  
$
1,025
 
  
$
1,025
 
Liabilities:
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
Short term debt
 
 
75
 
  
 
 
 
  
$
9
 
  
 
66
 
  
 
75
 
Long term debt
 
 
11,443
 
  
 
 
 
  
 
10,884
 
  
 
626
 
  
 
11,510
 
                               
December 31, 2018
 
 
  
 
  
 
  
 
  
 
Assets:
   
     
     
     
     
 
Other invested assets, primarily mortgage loans
  $
839
     
     
    $
827
    $
827
 
Liabilities:
   
     
     
     
     
 
Short term debt
   
15
     
    $
14
     
     
14
 
Long term debt
   
11,345
     
     
10,111
     
653
     
10,764