Fair Value (Tables)

9 Months Ended

Sep. 30, 2019

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

Financial assets measured at fair value on a recurring basis on the condensed consolidated balance sheets at September 30, 2019 and December 31, 2018 were as follows:



In millions	Level 1		Level 2		Level 3		Total
September 30, 2019
Debt securities:
U.S. government securities	$	1,746	$	80	$	—	$	1,826
States, municipalities and political subdivisions	—		2,353		—		2,353
U.S. corporate securities	—		7,596		41		7,637
Foreign securities	—		2,284		5		2,289
Residential mortgage-backed securities	—		554		—		554
Commercial mortgage-backed securities	—		701		—		701
Other asset-backed securities	—		1,358		—		1,358
Redeemable preferred securities	—		28		12		40
Total debt securities	1,746		14,954		58		16,758
Equity securities	32		—		36		68
Total	$	1,778	$	14,954	$	94	$	16,826

December 31, 2018
Debt securities:
U.S. government securities	$	1,597	$	91	$	—	$	1,688
States, municipalities and political subdivisions	—		2,399		—		2,399
U.S. corporate securities	—		6,422		67		6,489
Foreign securities	—		2,380		3		2,383
Residential mortgage-backed securities	—		577		—		577
Commercial mortgage-backed securities	—		605		—		605
Other asset-backed securities	—		1,085		—		1,085
Redeemable preferred securities	—		22		7		29
Total debt securities	1,597		13,581		77		15,255
Equity securities	19		—		54		73
Total	$	1,616	$	13,581	$	131	$	15,328

Fair Value, by Balance Sheet Grouping

The carrying value and estimated fair value classified by level of fair value hierarchy for financial instruments carried on the condensed consolidated balance sheets at adjusted cost or contract value at September 30, 2019 and December 31, 2018 were as follows:



	Carrying Value		Estimated Fair Value
In millions			Level 1		Level 2		Level 3		Total
September 30, 2019
Assets:
Mortgage loans	$	1,290	$	—	$	—	$	1,317	$	1,317
Equity securities ⁽¹⁾	142		N/A		N/A		N/A		N/A
Liabilities:
Investment contract liabilities:
With a fixed maturity	5		—		—		5		5
Without a fixed maturity	372		—		—		385		385
Long-term debt	67,984		72,823		—		—		72,823

December 31, 2018
Assets:
Mortgage loans	$	1,361	$	—	$	—	$	1,366	$	1,366
Equity securities ⁽¹⁾	140		N/A		N/A		N/A		N/A
Liabilities:
Investment contract liabilities:
With a fixed maturity	5		—		—		5		5
Without a fixed maturity	382		—		—		357		357
Long-term debt	72,709		71,252		—		—		71,252

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(1)	It was not practical to estimate the fair value of these cost-method investments as it represents shares of unlisted companies.

Schedule of Fair Value of Separate Accounts by Major Category of Investment

Separate Accounts financial assets as of September 30, 2019 and December 31, 2018 were as follows:



	September 30, 2019								December 31, 2018
In millions	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Debt securities	$	1,207	$	2,609	$	—	$	3,816	$	782	$	2,500	$	4	$	3,286
Equity securities	—		2		—		2		—		3		—		3
Common/collective trusts	—		513		—		513		—		404		—		404
Total ⁽¹⁾	$	1,207	$	3,124	$	—	$	4,331	$	782	$	2,907	$	4	$	3,693

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(1)	Excludes $259 million and $191 million of cash and cash equivalents and accounts receivable at September 30, 2019 and December 31, 2018, respectively.