|
☒
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Indiana
|
|
35-2145715
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification Number)
|
Title of each class
|
|
Trading symbol(s)
|
|
Name of each exchange on which registered
|
Common Stock, $0.01 par value
|
|
ANTM
|
|
New York Stock Exchange
|
Large accelerated filer
|
☒
|
|
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☐
|
|
|
Smaller reporting company
|
☐
|
Emerging growth company
|
☐
|
|
|
|
|
|
|
Page
|
PART I. FINANCIAL INFORMATION
|
|
|
|
|
|
ITEM 1.
|
|
|
|
|
|
|
||
|
||
|
||
|
||
|
||
|
||
|
|
|
ITEM 2.
|
||
ITEM 3.
|
||
ITEM 4.
|
||
PART II. OTHER INFORMATION
|
|
|
ITEM 1.
|
||
ITEM 1A.
|
||
ITEM 2.
|
||
ITEM 3.
|
||
ITEM 4.
|
||
ITEM 5.
|
||
ITEM 6.
|
||
ITEM 1.
|
FINANCIAL STATEMENTS
|
|
March 31,
2020 |
|
December 31,
2019 |
||||
(In millions, except share data)
|
(Unaudited)
|
|
|
||||
Assets
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
5,345
|
|
|
$
|
4,937
|
|
Fixed maturity securities (amortized cost of $20,211 and $19,021; allowance for credit losses of $51 and $0)
|
19,881
|
|
|
19,676
|
|
||
Equity securities
|
570
|
|
|
1,009
|
|
||
Premium receivables
|
5,786
|
|
|
5,014
|
|
||
Self-funded receivables
|
2,613
|
|
|
2,570
|
|
||
Other receivables
|
2,926
|
|
|
2,807
|
|
||
Other current assets
|
4,135
|
|
|
3,020
|
|
||
Total current assets
|
41,256
|
|
|
39,033
|
|
||
Long-term investments:
|
|
|
|
||||
Fixed maturity securities (amortized cost of $489 and $487;
allowance for credit losses of $0 and $0) |
505
|
|
|
505
|
|
||
Other invested assets
|
4,181
|
|
|
4,258
|
|
||
Property and equipment, net
|
3,350
|
|
|
3,133
|
|
||
Goodwill
|
21,661
|
|
|
20,500
|
|
||
Other intangible assets
|
9,613
|
|
|
8,674
|
|
||
Other noncurrent assets
|
1,833
|
|
|
1,350
|
|
||
Total assets
|
$
|
82,399
|
|
|
$
|
77,453
|
|
|
|
|
|
||||
Liabilities and shareholders’ equity
|
|
|
|
||||
Liabilities
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Medical claims payable
|
$
|
9,902
|
|
|
$
|
8,842
|
|
Other policyholder liabilities
|
3,252
|
|
|
3,050
|
|
||
Unearned income
|
947
|
|
|
1,017
|
|
||
Accounts payable and accrued expenses
|
5,058
|
|
|
4,198
|
|
||
Short-term borrowings
|
1,075
|
|
|
700
|
|
||
Current portion of long-term debt
|
1,603
|
|
|
1,598
|
|
||
Other current liabilities
|
5,202
|
|
|
4,127
|
|
||
Total current liabilities
|
27,039
|
|
|
23,532
|
|
||
Long-term debt, less current portion
|
19,005
|
|
|
17,787
|
|
||
Reserves for future policy benefits
|
754
|
|
|
759
|
|
||
Deferred tax liabilities, net
|
2,213
|
|
|
2,227
|
|
||
Other noncurrent liabilities
|
1,695
|
|
|
1,420
|
|
||
Total liabilities
|
50,706
|
|
|
45,725
|
|
||
Commitment and contingencies – Note 11
|
|
|
|
|
|
||
Shareholders’ equity
|
|
|
|
||||
Preferred stock, without par value, shares authorized – 100,000,000; shares issued and outstanding – none
|
—
|
|
|
—
|
|
||
Common stock, par value $0.01, shares authorized – 900,000,000; shares issued and outstanding –
252,020,028 and 252,922,161
|
3
|
|
|
3
|
|
||
Additional paid-in capital
|
9,338
|
|
|
9,448
|
|
||
Retained earnings
|
23,360
|
|
|
22,573
|
|
||
Accumulated other comprehensive loss
|
(1,008
|
)
|
|
(296
|
)
|
||
Total shareholders’ equity
|
31,693
|
|
|
31,728
|
|
||
Total liabilities and shareholders’ equity
|
$
|
82,399
|
|
|
$
|
77,453
|
|
|
|
Three Months Ended
March 31 |
||||||
(In millions, except per share data)
|
|
2020
|
|
2019
|
||||
Revenues
|
|
|
|
|
||||
Premiums
|
|
$
|
25,517
|
|
|
$
|
22,843
|
|
Product revenue
|
|
2,344
|
|
|
—
|
|
||
Administrative fees and other revenue
|
|
1,587
|
|
|
1,545
|
|
||
Total operating revenue
|
|
29,448
|
|
|
24,388
|
|
||
Net investment income
|
|
254
|
|
|
210
|
|
||
Net realized (losses) gains on financial instruments
|
|
(24
|
)
|
|
78
|
|
||
Impairment losses on investments:
|
|
|
|
|
||||
Total impairment losses on investments
|
|
(101
|
)
|
|
(13
|
)
|
||
Portion of impairment losses recognized in other comprehensive income
|
|
44
|
|
|
3
|
|
||
Impairment losses recognized in income
|
|
(57
|
)
|
|
(10
|
)
|
||
Total revenues
|
|
29,621
|
|
|
24,666
|
|
||
Expenses
|
|
|
|
|
||||
Benefit expense
|
|
21,489
|
|
|
19,282
|
|
||
Cost of products sold
|
|
1,984
|
|
|
—
|
|
||
Selling, general and administrative expense
|
|
3,781
|
|
|
3,166
|
|
||
Interest expense
|
|
194
|
|
|
187
|
|
||
Amortization of other intangible assets
|
|
83
|
|
|
87
|
|
||
Loss (gain) on extinguishment of debt
|
|
1
|
|
|
(1
|
)
|
||
Total expenses
|
|
27,532
|
|
|
22,721
|
|
||
Income before income tax expense
|
|
2,089
|
|
|
1,945
|
|
||
Income tax expense
|
|
566
|
|
|
394
|
|
||
Net income
|
|
$
|
1,523
|
|
|
$
|
1,551
|
|
Net income per share
|
|
|
|
|
||||
Basic
|
|
$
|
6.03
|
|
|
$
|
6.03
|
|
Diluted
|
|
$
|
5.94
|
|
|
$
|
5.91
|
|
Dividends per share
|
|
$
|
0.95
|
|
|
$
|
0.80
|
|
|
|
Three Months Ended
March 31 |
||||||
(In millions)
|
|
2020
|
|
2019
|
||||
Net income
|
|
$
|
1,523
|
|
|
$
|
1,551
|
|
Other comprehensive (loss) income, net of tax:
|
|
|
|
|
||||
Change in net unrealized losses/gains on investments
|
|
(689
|
)
|
|
357
|
|
||
Change in non-credit component of impairment losses on investments
|
|
(32
|
)
|
|
—
|
|
||
Change in net unrealized gains/losses on cash flow hedges
|
|
3
|
|
|
3
|
|
||
Change in net periodic pension and postretirement costs
|
|
7
|
|
|
3
|
|
||
Foreign currency translation adjustments
|
|
(1
|
)
|
|
—
|
|
||
Other comprehensive (loss) income
|
|
(712
|
)
|
|
363
|
|
||
Total comprehensive income
|
|
$
|
811
|
|
|
$
|
1,914
|
|
|
Three Months Ended
March 31 |
||||||
(In millions)
|
2020
|
|
2019
|
||||
Operating activities
|
|
|
|
||||
Net income
|
$
|
1,523
|
|
|
$
|
1,551
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Net realized losses (gains) on financial instruments
|
24
|
|
|
(78
|
)
|
||
Depreciation and amortization
|
270
|
|
|
289
|
|
||
Deferred income taxes
|
57
|
|
|
55
|
|
||
Share-based compensation
|
67
|
|
|
70
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Receivables, net
|
(639
|
)
|
|
(753
|
)
|
||
Other invested assets
|
63
|
|
|
(21
|
)
|
||
Other assets
|
(525
|
)
|
|
(125
|
)
|
||
Policy liabilities
|
692
|
|
|
791
|
|
||
Unearned income
|
(109
|
)
|
|
96
|
|
||
Accounts payable and other liabilities
|
588
|
|
|
(354
|
)
|
||
Income taxes
|
491
|
|
|
115
|
|
||
Other, net
|
13
|
|
|
(6
|
)
|
||
Net cash provided by operating activities
|
2,515
|
|
|
1,630
|
|
||
Investing activities
|
|
|
|
||||
Purchases of investments
|
(3,896
|
)
|
|
(6,069
|
)
|
||
Proceeds from sale of investments
|
2,728
|
|
|
5,236
|
|
||
Maturities, calls and redemptions from investments
|
597
|
|
|
393
|
|
||
Purchases of subsidiaries, net of cash acquired
|
(1,908
|
)
|
|
—
|
|
||
Purchases of property and equipment
|
(204
|
)
|
|
(234
|
)
|
||
Other, net
|
(101
|
)
|
|
22
|
|
||
Net cash used in investing activities
|
(2,784
|
)
|
|
(652
|
)
|
||
Financing activities
|
|
|
|
||||
Net proceeds from commercial paper borrowings
|
905
|
|
|
178
|
|
||
Proceeds from long-term borrowings
|
300
|
|
|
2
|
|
||
Repayments of long-term borrowings
|
(52
|
)
|
|
(63
|
)
|
||
Proceeds from short-term borrowings
|
1,075
|
|
|
2,710
|
|
||
Repayments of short-term borrowings
|
(700
|
)
|
|
(2,760
|
)
|
||
Repurchase and retirement of common stock
|
(529
|
)
|
|
(294
|
)
|
||
Cash dividends
|
(240
|
)
|
|
(206
|
)
|
||
Proceeds from issuance of common stock under employee stock plans
|
44
|
|
|
76
|
|
||
Taxes paid through withholding of common stock under employee stock plans
|
(107
|
)
|
|
(78
|
)
|
||
Other, net
|
(17
|
)
|
|
6
|
|
||
Net cash provided by (used in) financing activities
|
679
|
|
|
(429
|
)
|
||
Effect of foreign exchange rates on cash and cash equivalents
|
(2
|
)
|
|
(1
|
)
|
||
Change in cash and cash equivalents
|
408
|
|
|
548
|
|
||
Cash and cash equivalents at beginning of period
|
4,937
|
|
|
3,934
|
|
||
Cash and cash equivalents at end of period
|
$
|
5,345
|
|
|
$
|
4,482
|
|
|
Common Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Total
Shareholders’
Equity
|
|||||||||||||
(In millions)
|
Number of
Shares
|
|
Par
Value
|
|
||||||||||||||||||
December 31, 2019 (audited)
|
252.9
|
|
|
$
|
3
|
|
|
$
|
9,448
|
|
|
$
|
22,573
|
|
|
$
|
(296
|
)
|
|
$
|
31,728
|
|
Adoption of Accounting Standards Update No. 2016-13 (Note 2)
|
—
|
|
|
—
|
|
|
—
|
|
|
(35
|
)
|
|
—
|
|
|
(35
|
)
|
|||||
January 1, 2020
|
252.9
|
|
|
3
|
|
|
9,448
|
|
|
22,538
|
|
|
(296
|
)
|
|
31,693
|
|
|||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
1,523
|
|
|
—
|
|
|
1,523
|
|
|||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(712
|
)
|
|
(712
|
)
|
|||||
Repurchase and retirement of common stock
|
(1.9
|
)
|
|
—
|
|
|
(71
|
)
|
|
(458
|
)
|
|
—
|
|
|
(529
|
)
|
|||||
Dividends and dividend equivalents
|
—
|
|
|
—
|
|
|
—
|
|
|
(243
|
)
|
|
—
|
|
|
(243
|
)
|
|||||
Issuance of common stock under employee stock plans, net of related tax benefits
|
1.0
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|||||
Convertible debenture repurchases and conversions
|
—
|
|
|
—
|
|
|
(42
|
)
|
|
—
|
|
|
—
|
|
|
(42
|
)
|
|||||
March 31, 2020
|
252.0
|
|
|
$
|
3
|
|
|
$
|
9,338
|
|
|
$
|
23,360
|
|
|
(1,008
|
)
|
|
$
|
31,693
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
December 31, 2018 (audited)
|
257.4
|
|
|
$
|
3
|
|
|
$
|
9,536
|
|
|
$
|
19,988
|
|
|
$
|
(986
|
)
|
|
$
|
28,541
|
|
Adoption of Accounting Standards Update No. 2016-02 (Note 2)
|
—
|
|
|
—
|
|
|
—
|
|
|
26
|
|
|
—
|
|
|
26
|
|
|||||
January 1, 2019
|
257.4
|
|
|
3
|
|
|
9,536
|
|
|
20,014
|
|
|
(986
|
)
|
|
28,567
|
|
|||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
1,551
|
|
|
—
|
|
|
1,551
|
|
|||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
363
|
|
|
363
|
|
|||||
Repurchase and retirement of common stock
|
(1.1
|
)
|
|
—
|
|
|
(71
|
)
|
|
(223
|
)
|
|
—
|
|
|
(294
|
)
|
|||||
Dividends and dividend equivalents
|
—
|
|
|
—
|
|
|
—
|
|
|
(206
|
)
|
|
—
|
|
|
(206
|
)
|
|||||
Issuance of common stock under employee stock plans, net of related tax benefits
|
1.1
|
|
|
—
|
|
|
69
|
|
|
—
|
|
|
—
|
|
|
69
|
|
|||||
Convertible debenture repurchases and conversions
|
—
|
|
|
—
|
|
|
(52
|
)
|
|
—
|
|
|
—
|
|
|
(52
|
)
|
|||||
March 31, 2019
|
257.4
|
|
|
$
|
3
|
|
|
$
|
9,482
|
|
|
$
|
21,136
|
|
|
$
|
(623
|
)
|
|
$
|
29,998
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.
|
Organization
|
2.
|
Basis of Presentation and Significant Accounting Policies
|
3.
|
Business Acquisition
|
4.
|
Investments
|
|
Cost or
Amortized Cost |
|
|
|
|
|
|
|
|
|
Non-Credit
Component of
Impairment Recognized in
Accumulated
Other
Comprehensive
Loss
|
||||||||||||||||
|
|
Gross
Unrealized Gains |
|
Gross Unrealized Losses
|
|
Allowance For Credit Losses
|
|
Estimated
Fair Value |
|
||||||||||||||||||
|
|
|
Less than
12 Months
|
|
12 Months
or Greater
|
|
|
|
|||||||||||||||||||
March 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
United States Government securities
|
$
|
450
|
|
|
$
|
24
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
474
|
|
|
$
|
—
|
|
Government sponsored securities
|
369
|
|
|
5
|
|
|
(48
|
)
|
|
—
|
|
|
—
|
|
|
326
|
|
|
—
|
|
|||||||
States, municipalities and political subdivisions
|
4,768
|
|
|
233
|
|
|
(14
|
)
|
|
—
|
|
|
—
|
|
|
4,987
|
|
|
—
|
|
|||||||
Corporate securities
|
9,609
|
|
|
148
|
|
|
(450
|
)
|
|
(44
|
)
|
|
(51
|
)
|
|
9,212
|
|
|
(44
|
)
|
|||||||
Residential mortgage-backed securities
|
3,731
|
|
|
93
|
|
|
(95
|
)
|
|
(7
|
)
|
|
—
|
|
|
3,722
|
|
|
—
|
|
|||||||
Commercial mortgage-backed securities
|
81
|
|
|
1
|
|
|
(3
|
)
|
|
(1
|
)
|
|
—
|
|
|
78
|
|
|
—
|
|
|||||||
Other securities
|
1,692
|
|
|
6
|
|
|
(97
|
)
|
|
(14
|
)
|
|
—
|
|
|
1,587
|
|
|
—
|
|
|||||||
Total fixed maturity securities
|
$
|
20,700
|
|
|
$
|
510
|
|
|
$
|
(707
|
)
|
|
$
|
(66
|
)
|
|
$
|
(51
|
)
|
|
$
|
20,386
|
|
|
$
|
(44
|
)
|
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
United States Government securities
|
$
|
524
|
|
|
$
|
4
|
|
|
$
|
(3
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
525
|
|
|
$
|
—
|
|
Government sponsored securities
|
136
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
141
|
|
|
—
|
|
|||||||
States, municipalities and political subdivisions
|
4,592
|
|
|
262
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
4,851
|
|
|
—
|
|
|||||||
Corporate securities
|
8,870
|
|
|
339
|
|
|
(9
|
)
|
|
(15
|
)
|
|
—
|
|
|
9,185
|
|
|
(3
|
)
|
|||||||
Residential mortgage-backed securities
|
3,654
|
|
|
87
|
|
|
(6
|
)
|
|
(3
|
)
|
|
—
|
|
|
3,732
|
|
|
—
|
|
|||||||
Commercial mortgage-backed securities
|
84
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
86
|
|
|
—
|
|
|||||||
Other securities
|
1,648
|
|
|
21
|
|
|
(3
|
)
|
|
(5
|
)
|
|
—
|
|
|
1,661
|
|
|
—
|
|
|||||||
Total fixed maturity securities
|
$
|
19,508
|
|
|
$
|
720
|
|
|
$
|
(24
|
)
|
|
$
|
(23
|
)
|
|
$
|
—
|
|
|
$
|
20,181
|
|
|
$
|
(3
|
)
|
|
Less than 12 Months
|
|
12 Months or Greater
|
||||||||||||||||||
(Securities are whole amounts)
|
Number of
Securities
|
|
Estimated
Fair Value
|
|
Gross
Unrealized
Loss
|
|
Number of
Securities
|
|
Estimated
Fair Value
|
|
Gross
Unrealized
Loss
|
||||||||||
March 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
United States Government securities
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Government sponsored securities
|
278
|
|
|
224
|
|
|
(48
|
)
|
|
1
|
|
|
—
|
|
|
—
|
|
||||
States, municipalities and political subdivisions
|
239
|
|
|
509
|
|
|
(14
|
)
|
|
3
|
|
|
4
|
|
|
—
|
|
||||
Corporate securities
|
2,773
|
|
|
5,003
|
|
|
(450
|
)
|
|
170
|
|
|
176
|
|
|
(44
|
)
|
||||
Residential mortgage-backed securities
|
603
|
|
|
1,182
|
|
|
(95
|
)
|
|
63
|
|
|
57
|
|
|
(7
|
)
|
||||
Commercial mortgage-backed securities
|
14
|
|
|
29
|
|
|
(3
|
)
|
|
3
|
|
|
6
|
|
|
(1
|
)
|
||||
Other securities
|
520
|
|
|
1,175
|
|
|
(97
|
)
|
|
58
|
|
|
142
|
|
|
(14
|
)
|
||||
Total fixed maturity securities
|
4,428
|
|
|
$
|
8,122
|
|
|
$
|
(707
|
)
|
|
298
|
|
|
$
|
385
|
|
|
$
|
(66
|
)
|
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
United States Government securities
|
27
|
|
|
$
|
250
|
|
|
$
|
(3
|
)
|
|
2
|
|
|
$
|
1
|
|
|
$
|
—
|
|
Government sponsored securities
|
14
|
|
|
12
|
|
|
—
|
|
|
3
|
|
|
1
|
|
|
—
|
|
||||
States, municipalities and political subdivisions
|
114
|
|
|
306
|
|
|
(3
|
)
|
|
14
|
|
|
11
|
|
|
—
|
|
||||
Corporate securities
|
386
|
|
|
558
|
|
|
(9
|
)
|
|
224
|
|
|
286
|
|
|
(15
|
)
|
||||
Residential mortgage-backed securities
|
321
|
|
|
635
|
|
|
(6
|
)
|
|
189
|
|
|
237
|
|
|
(3
|
)
|
||||
Commercial mortgage-backed securities
|
1
|
|
|
3
|
|
|
—
|
|
|
4
|
|
|
8
|
|
|
—
|
|
||||
Other securities
|
166
|
|
|
415
|
|
|
(3
|
)
|
|
113
|
|
|
358
|
|
|
(5
|
)
|
||||
Total fixed maturity securities
|
1,029
|
|
|
$
|
2,179
|
|
|
$
|
(24
|
)
|
|
549
|
|
|
$
|
902
|
|
|
$
|
(23
|
)
|
|
|
|
Corporate Securities
|
|||
Allowance for credit losses:
|
|
|
|
|||
|
Beginning balance
|
|
|
$
|
—
|
|
|
Additions for securities for which no previous expected credit losses were recognized
|
|
|
51
|
|
|
Total allowance for credit losses
|
|
|
$
|
51
|
|
|
Amortized
Cost
|
|
Estimated
Fair Value
|
||||
Due in one year or less
|
$
|
520
|
|
|
$
|
511
|
|
Due after one year through five years
|
5,730
|
|
|
5,583
|
|
||
Due after five years through ten years
|
6,035
|
|
|
5,882
|
|
||
Due after ten years
|
4,603
|
|
|
4,610
|
|
||
Mortgage-backed securities
|
3,812
|
|
|
3,800
|
|
||
Total fixed maturity securities
|
$
|
20,700
|
|
|
$
|
20,386
|
|
|
|
Three Months Ended
March 31 |
||||||
|
|
2020
|
|
2019
|
||||
Proceeds
|
|
$
|
1,931
|
|
|
$
|
1,468
|
|
Gross realized gains
|
|
43
|
|
|
18
|
|
||
Gross realized losses
|
|
(20
|
)
|
|
(17
|
)
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
Equity securities:
|
|
|
|
||||
Exchange traded funds
|
$
|
245
|
|
|
$
|
44
|
|
Fixed maturity mutual funds
|
211
|
|
|
643
|
|
||
Common equity securities
|
32
|
|
|
237
|
|
||
Private equity securities
|
82
|
|
|
85
|
|
||
Total
|
$
|
570
|
|
|
$
|
1,009
|
|
|
|
Three Months Ended March 31
|
||||||
|
|
2020
|
|
2019
|
||||
Net realized (losses) gains recognized on equity securities
|
|
$
|
(50
|
)
|
|
$
|
79
|
|
Less: Net realized gains recognized on equity securities sold during the period
|
|
(18
|
)
|
|
(21
|
)
|
||
Unrealized (losses) gains recognized on equity securities still held at March 31
|
|
$
|
(68
|
)
|
|
$
|
58
|
|
|
Overnight and Continuous
|
||
Securities lending transactions
|
|
||
Cash
|
$
|
354
|
|
United States Government securities
|
69
|
|
|
Other securities
|
4
|
|
|
Total
|
$
|
427
|
|
5.
|
Derivative Financial Instruments
|
6.
|
Fair Value
|
Level Input
|
|
Input Definition
|
Level I
|
|
Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date.
|
Level II
|
|
Inputs other than quoted prices included in Level I that are observable for the asset or liability through corroboration with market data at the measurement date.
|
Level III
|
|
Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date.
|
|
Level I
|
|
Level II
|
|
Level III
|
|
Total
|
||||||||
March 31, 2020
|
|
|
|
|
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
$
|
2,363
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,363
|
|
Fixed maturity securities, available-for-sale:
|
|
|
|
|
|
|
|
||||||||
United States Government securities
|
—
|
|
|
474
|
|
|
—
|
|
|
474
|
|
||||
Government sponsored securities
|
—
|
|
|
326
|
|
|
—
|
|
|
326
|
|
||||
States, municipalities and political subdivisions, tax-exempt
|
—
|
|
|
4,987
|
|
|
—
|
|
|
4,987
|
|
||||
Corporate securities
|
—
|
|
|
8,896
|
|
|
316
|
|
|
9,212
|
|
||||
Residential mortgage-backed securities
|
—
|
|
|
3,720
|
|
|
2
|
|
|
3,722
|
|
||||
Commercial mortgage-backed securities
|
—
|
|
|
78
|
|
|
—
|
|
|
78
|
|
||||
Other securities
|
—
|
|
|
1,582
|
|
|
5
|
|
|
1,587
|
|
||||
Total fixed maturity securities, available-for-sale
|
—
|
|
|
20,063
|
|
|
323
|
|
|
20,386
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Exchange traded funds
|
245
|
|
|
—
|
|
|
—
|
|
|
245
|
|
||||
Fixed maturity mutual funds
|
—
|
|
|
211
|
|
|
—
|
|
|
211
|
|
||||
Common equity securities
|
2
|
|
|
30
|
|
|
—
|
|
|
32
|
|
||||
Private equity securities
|
—
|
|
|
—
|
|
|
82
|
|
|
82
|
|
||||
Total equity securities
|
247
|
|
|
241
|
|
|
82
|
|
|
570
|
|
||||
Securities lending collateral
|
—
|
|
|
426
|
|
|
—
|
|
|
426
|
|
||||
Derivatives
|
—
|
|
|
49
|
|
|
—
|
|
|
49
|
|
||||
Total assets
|
$
|
2,610
|
|
|
$
|
20,779
|
|
|
$
|
405
|
|
|
$
|
23,794
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivatives
|
$
|
—
|
|
|
$
|
(5
|
)
|
|
$
|
—
|
|
|
$
|
(5
|
)
|
Total liabilities
|
$
|
—
|
|
|
$
|
(5
|
)
|
|
$
|
—
|
|
|
$
|
(5
|
)
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2019
|
|
|
|
|
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
$
|
2,015
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,015
|
|
Fixed maturity securities, available-for-sale:
|
|
|
|
|
|
|
|
||||||||
United States Government securities
|
—
|
|
|
525
|
|
|
—
|
|
|
525
|
|
||||
Government sponsored securities
|
—
|
|
|
141
|
|
|
—
|
|
|
141
|
|
||||
States, municipalities and political subdivisions, tax-exempt
|
—
|
|
|
4,851
|
|
|
—
|
|
|
4,851
|
|
||||
Corporate securities
|
—
|
|
|
8,882
|
|
|
303
|
|
|
9,185
|
|
||||
Residential mortgage-backed securities
|
—
|
|
|
3,730
|
|
|
2
|
|
|
3,732
|
|
||||
Commercial mortgage-backed securities
|
—
|
|
|
86
|
|
|
—
|
|
|
86
|
|
||||
Other securities
|
—
|
|
|
1,654
|
|
|
7
|
|
|
1,661
|
|
||||
Total fixed maturity securities, available-for-sale
|
—
|
|
|
19,869
|
|
|
312
|
|
|
20,181
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Exchange traded funds
|
44
|
|
|
—
|
|
|
—
|
|
|
44
|
|
||||
Fixed maturity mutual funds
|
—
|
|
|
643
|
|
|
—
|
|
|
643
|
|
||||
Common equity securities
|
206
|
|
|
31
|
|
|
—
|
|
|
237
|
|
||||
Private equity securities
|
—
|
|
|
—
|
|
|
85
|
|
|
85
|
|
||||
Total equity securities
|
250
|
|
|
674
|
|
|
85
|
|
|
1,009
|
|
||||
Securities lending collateral
|
—
|
|
|
353
|
|
|
—
|
|
|
353
|
|
||||
Derivatives
|
—
|
|
|
23
|
|
|
—
|
|
|
23
|
|
||||
Total assets
|
$
|
2,265
|
|
|
$
|
20,919
|
|
|
$
|
397
|
|
|
$
|
23,581
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivatives
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
Total liabilities
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Corporate
Securities
|
|
Residential
Mortgage-
backed
Securities
|
|
Other
Securities
|
|
Equity
Securities
|
|
Total
|
||||||||||
Three Months Ended March 31, 2020
|
|
|
|
|
|
|
|
|
|
||||||||||
Beginning balance at January 1, 2020
|
$
|
303
|
|
|
$
|
2
|
|
|
$
|
7
|
|
|
$
|
85
|
|
|
$
|
397
|
|
Total losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Recognized in net income
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
(8
|
)
|
|||||
Recognized in accumulated other comprehensive loss
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|||||
Purchases
|
26
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
38
|
|
|||||
Sales
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
(12
|
)
|
|||||
Settlements
|
(11
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(13
|
)
|
|||||
Transfers into Level III
|
13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|||||
Ending balance at March 31, 2020
|
$
|
316
|
|
|
$
|
2
|
|
|
$
|
5
|
|
|
$
|
82
|
|
|
$
|
405
|
|
Change in unrealized losses included in net income related to assets still held at March 31, 2020
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(7
|
)
|
|
$
|
(7
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Three Months Ended March 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
Beginning balance at January 1, 2019
|
$
|
287
|
|
|
$
|
6
|
|
|
$
|
17
|
|
|
$
|
313
|
|
|
$
|
623
|
|
Total (losses) gains:
|
|
|
|
|
|
|
|
|
|
||||||||||
Recognized in net income
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(3
|
)
|
|||||
Recognized in accumulated other comprehensive loss
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Purchases
|
33
|
|
|
—
|
|
|
2
|
|
|
7
|
|
|
42
|
|
|||||
Sales
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(21
|
)
|
|
(22
|
)
|
|||||
Settlements
|
(21
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(22
|
)
|
|||||
Transfers into Level III
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|||||
Transfers out of Level III
|
(2
|
)
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
(9
|
)
|
|||||
Ending balance at March 31, 2019
|
$
|
297
|
|
|
$
|
6
|
|
|
$
|
14
|
|
|
$
|
297
|
|
|
$
|
614
|
|
Change in unrealized gains included in net income related to assets still held at March 31, 2019
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
|
$
|
(2
|
)
|
|
Carrying
Value
|
|
Estimated Fair Value
|
||||||||||||||||
|
|
Level I
|
|
Level II
|
|
Level III
|
|
Total
|
|||||||||||
March 31, 2020
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Other invested assets
|
$
|
4,181
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,181
|
|
|
$
|
4,181
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Debt:
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term borrowings
|
1,075
|
|
|
—
|
|
|
1,075
|
|
|
—
|
|
|
1,075
|
|
|||||
Senior revolving credit facility
|
300
|
|
|
—
|
|
|
300
|
|
|
—
|
|
|
300
|
|
|||||
Commercial paper
|
1,305
|
|
|
—
|
|
|
1,305
|
|
|
—
|
|
|
1,305
|
|
|||||
Notes
|
18,867
|
|
|
—
|
|
|
20,343
|
|
|
—
|
|
|
20,343
|
|
|||||
Convertible debentures
|
136
|
|
|
—
|
|
|
680
|
|
|
—
|
|
|
680
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Other invested assets
|
$
|
4,258
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,258
|
|
|
$
|
4,258
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Debt:
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term borrowings
|
700
|
|
|
—
|
|
|
700
|
|
|
—
|
|
|
700
|
|
|||||
Commercial paper
|
400
|
|
|
—
|
|
|
400
|
|
|
—
|
|
|
400
|
|
|||||
Notes
|
18,840
|
|
|
—
|
|
|
20,470
|
|
|
—
|
|
|
20,470
|
|
|||||
Convertible debentures
|
145
|
|
|
—
|
|
|
904
|
|
|
—
|
|
|
904
|
|
7.
|
Income Taxes
|
8.
|
Retirement Benefits
|
|
|