Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2024

Assets and liabilities measured at fair value

Assets and liabilities measured and carried at fair value in the financial statements are summarized below (in millions):


	Level 1		Level 2		Level 3		Total
December 31, 2024
Assets:
Available for sale (“AFS”) fixed maturities:
U.S. Government and government agencies	$	173	$	—	$	—	$	173
States, municipalities and political subdivisions	—		858		1		859
Foreign government	—		237		—		237
Residential MBS	—		1,988		1		1,989
Commercial MBS	—		51		—		51
Collateralized loan obligations	—		1,237		—		1,237
Other asset-backed securities	—		2,060		296		2,356
Corporate and other	12		3,014		470		3,496
Total AFS fixed maturities	185		9,445		768		10,398
Trading fixed maturities	—		50		26		76
Equity securities	419		40		292		751
Assets of managed investment entities (“MIE”)	419		3,711		10		4,140
Other assets — derivatives	—		1		—		1
Total assets accounted for at fair value	$	1,023	$	13,247	$	1,096	$	15,366
Liabilities:
Contingent consideration — acquisitions	$	—	$	—	$	2	$	2
Liabilities of managed investment entities	402		3,553		10		3,965
Other liabilities — derivatives	—		18		—		18
Total liabilities accounted for at fair value	$	402	$	3,571	$	12	$	3,985

December 31, 2023
Assets:
Available for sale fixed maturities:
U.S. Government and government agencies	$	235	$	1	$	—	$	236
States, municipalities and political subdivisions	—		982		2		984
Foreign government	—		230		—		230
Residential MBS	—		1,656		2		1,658
Commercial MBS	—		74		—		74
Collateralized loan obligations	—		1,686		1		1,687
Other asset-backed securities	—		2,011		351		2,362
Corporate and other	9		2,757		380		3,146
Total AFS fixed maturities	244		9,397		736		10,377
Trading fixed maturities	—		57		—		57
Equity securities	500		33		485		1,018
Assets of managed investment entities	335		4,140		9		4,484
Other assets — derivatives	—		6		—		6
Total assets accounted for at fair value	$	1,079	$	13,633	$	1,230	$	15,942
Liabilities:
Contingent consideration — acquisitions	$	—	$	—	$	2	$	2
Liabilities of managed investment entities	322		3,976		9		4,307
Other liabilities — derivatives	—		22		—		22
Total liabilities accounted for at fair value	$	322	$	3,998	$	11	$	4,331

Changes in asset balances of Level 3 financial assets

Changes in balances of Level 3 financial assets and liabilities carried at fair value during 2024, 2023 and 2022 are presented below (in millions). The transfers into and out of Level 3 were generally due to changes in the availability of market observable inputs. All transfers are reflected in the table at fair value as of the end of the reporting period.


			Total realized/unrealized gains (losses) included in
	Balance at December 31, 2023		Net earnings (loss)		Other comprehensive income (loss)		Purchases and issuances		Sales and settlements		Transfer into Level 3		Transfer out of Level 3		Balance at December 31, 2024
AFS fixed maturities:
U.S. government agency	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
State and municipal	2		—		—		—		(1)		—		—		1
Residential MBS	2		—		—		—		—		—		(1)		1
Commercial MBS	—		—		—		—		—		—		—		—
Collateralized loan obligations	1		(1)		—		—		—		—		—		—
Other asset-backed securities	351		(1)		8		59		(100)		5		(26)		296
Corporate and other	380		16		6		105		(31)		4		(10)		470
Total AFS fixed maturities	736		14		14		164		(132)		9		(37)		768
Trading fixed maturities	—		2		—		24		—		—		—		26
Equity securities (*)	485		60		—		174		(57)		—		(370)		292
Assets of MIE	9		—		(5)		6		—		—		—		10
Total Level 3 assets	$	1,230	$	76	$	9	$	368	$	(189)	$	9	$	(407)	$	1,096

Contingent consideration — acquisitions	$	(2)	$	(1)	$	—	$	(1)	$	2	$	—	$	—	$	(2)
Total Level 3 liabilities	$	(2)	$	(1)	$	—	$	(1)	$	2	$	—	$	—	$	(2)

(*)Transfers out primarily relate to investments now accounted for using the equity method.


			Total realized/unrealized gains (losses) included in
	Balance at December 31, 2022		Net earnings (loss)		Other comprehensive income (loss)		Purchases and issuances		Sales and settlements		Transfer into Level 3		Transfer out of Level 3		Balance at December 31, 2023
AFS fixed maturities:
U.S. government agency	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
State and municipal	5		—		—		—		(1)		1		(3)		2
Residential MBS	9		1		(1)		—		(3)		5		(9)		2
Commercial MBS	—		—		—		—		—		—		—		—
Collateralized loan obligations	2		(2)		1		—		—		1		(1)		1
Other asset-backed securities	329		1		6		55		(39)		31		(32)		351
Corporate and other	319		(4)		5		92		(27)		8		(13)		380
Total AFS fixed maturities	664		(4)		11		147		(70)		46		(58)		736
Equity securities	427		15		—		121		(39)		—		(39)		485
Assets of MIE	11		(4)		—		2		—		—		—		9
Total Level 3 assets	$	1,102	$	7	$	11	$	270	$	(109)	$	46	$	(97)	$	1,230

Contingent consideration — acquisitions	$	(25)	$	23	$	—	$	—	$	—	$	—	$	—	$	(2)
Total Level 3 liabilities	$	(25)	$	23	$	—	$	—	$	—	$	—	$	—	$	(2)


			Total realized/unrealized gains (losses) included in
	Balance at December 31, 2021		Net earnings (loss)		Other comprehensive income (loss)		Purchases and issuances		Sales and settlements		Transfer into Level 3		Transfer out of Level 3		Balance at December 31, 2022
AFS fixed maturities:
U.S. government agency	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
State and municipal	41		—		(3)		—		(1)		4		(36)		5
Residential MBS	14		—		(1)		—		(1)		7		(10)		9
Commercial MBS	—		—		—		—		—		—		—		—
Collateralized loan obligations	—		—		—		—		—		2		—		2
Other asset-backed securities	278		1		(27)		94		(52)		35		—		329
Corporate and other	267		(1)		(22)		129		(39)		20		(35)		319
Total AFS fixed maturities	600		—		(53)		223		(93)		68		(81)		664
Equity securities	313		29		—		112		(24)		4		(7)		427
Assets of MIE	13		(5)		—		3		—		—		—		11
Total Level 3 assets	$	926	$	24	$	(53)	$	338	$	(117)	$	72	$	(88)	$	1,102

Contingent consideration — acquisitions	$	(23)	$	—	$	—	$	(2)	$	—	$	—	$	—	$	(25)
Total Level 3 liabilities	$	(23)	$	—	$	—	$	(2)	$	—	$	—	$	—	$	(25)

Changes in liability balances of Level 3 financial liabilities


			Total realized/unrealized gains (losses) included in
	Balance at December 31, 2023		Net earnings (loss)		Other comprehensive income (loss)		Purchases and issuances		Sales and settlements		Transfer into Level 3		Transfer out of Level 3		Balance at December 31, 2024
AFS fixed maturities:
U.S. government agency	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
State and municipal	2		—		—		—		(1)		—		—		1
Residential MBS	2		—		—		—		—		—		(1)		1
Commercial MBS	—		—		—		—		—		—		—		—
Collateralized loan obligations	1		(1)		—		—		—		—		—		—
Other asset-backed securities	351		(1)		8		59		(100)		5		(26)		296
Corporate and other	380		16		6		105		(31)		4		(10)		470
Total AFS fixed maturities	736		14		14		164		(132)		9		(37)		768
Trading fixed maturities	—		2		—		24		—		—		—		26
Equity securities (*)	485		60		—		174		(57)		—		(370)		292
Assets of MIE	9		—		(5)		6		—		—		—		10
Total Level 3 assets	$	1,230	$	76	$	9	$	368	$	(189)	$	9	$	(407)	$	1,096

Contingent consideration — acquisitions	$	(2)	$	(1)	$	—	$	(1)	$	2	$	—	$	—	$	(2)
Total Level 3 liabilities	$	(2)	$	(1)	$	—	$	(1)	$	2	$	—	$	—	$	(2)

(*)Transfers out primarily relate to investments now accounted for using the equity method.


			Total realized/unrealized gains (losses) included in
	Balance at December 31, 2022		Net earnings (loss)		Other comprehensive income (loss)		Purchases and issuances		Sales and settlements		Transfer into Level 3		Transfer out of Level 3		Balance at December 31, 2023
AFS fixed maturities:
U.S. government agency	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
State and municipal	5		—		—		—		(1)		1		(3)		2
Residential MBS	9		1		(1)		—		(3)		5		(9)		2
Commercial MBS	—		—		—		—		—		—		—		—
Collateralized loan obligations	2		(2)		1		—		—		1		(1)		1
Other asset-backed securities	329		1		6		55		(39)		31		(32)		351
Corporate and other	319		(4)		5		92		(27)		8		(13)		380
Total AFS fixed maturities	664		(4)		11		147		(70)		46		(58)		736
Equity securities	427		15		—		121		(39)		—		(39)		485
Assets of MIE	11		(4)		—		2		—		—		—		9
Total Level 3 assets	$	1,102	$	7	$	11	$	270	$	(109)	$	46	$	(97)	$	1,230

Contingent consideration — acquisitions	$	(25)	$	23	$	—	$	—	$	—	$	—	$	—	$	(2)
Total Level 3 liabilities	$	(25)	$	23	$	—	$	—	$	—	$	—	$	—	$	(2)


			Total realized/unrealized gains (losses) included in
	Balance at December 31, 2021		Net earnings (loss)		Other comprehensive income (loss)		Purchases and issuances		Sales and settlements		Transfer into Level 3		Transfer out of Level 3		Balance at December 31, 2022
AFS fixed maturities:
U.S. government agency	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
State and municipal	41		—		(3)		—		(1)		4		(36)		5
Residential MBS	14		—		(1)		—		(1)		7		(10)		9
Commercial MBS	—		—		—		—		—		—		—		—
Collateralized loan obligations	—		—		—		—		—		2		—		2
Other asset-backed securities	278		1		(27)		94		(52)		35		—		329
Corporate and other	267		(1)		(22)		129		(39)		20		(35)		319
Total AFS fixed maturities	600		—		(53)		223		(93)		68		(81)		664
Equity securities	313		29		—		112		(24)		4		(7)		427
Assets of MIE	13		(5)		—		3		—		—		—		11
Total Level 3 assets	$	926	$	24	$	(53)	$	338	$	(117)	$	72	$	(88)	$	1,102

Contingent consideration — acquisitions	$	(23)	$	—	$	—	$	(2)	$	—	$	—	$	—	$	(25)
Total Level 3 liabilities	$	(23)	$	—	$	—	$	(2)	$	—	$	—	$	—	$	(25)

Fair value of financial instruments

The carrying value and fair value of financial instruments that are not carried at fair value in the financial statements at December 31 are summarized below (in millions):


	Carrying		Fair Value
	Value		Total		Level 1		Level 2		Level 3
2024
Financial assets:
Cash and cash equivalents	$	1,406	$	1,406	$	1,406	$	—	$	—
Mortgage loans	791		754		—		—		754
Total financial assets not accounted for at fair value	$	2,197	$	2,160	$	1,406	$	—	$	754

Long-term debt	$	1,475	$	1,276	$	—	$	1,273	$	3
Total financial liabilities not accounted for at fair value	$	1,475	$	1,276	$	—	$	1,273	$	3

2023
Financial assets:
Cash and cash equivalents	$	1,225	$	1,225	$	1,225	$	—	$	—
Mortgage loans	643		596		—		—		596
Total financial assets not accounted for at fair value	$	1,868	$	1,821	$	1,225	$	—	$	596

Long-term debt	$	1,475	$	1,345	$	—	$	1,342	$	3
Total financial liabilities not accounted for at fair value	$	1,475	$	1,345	$	—	$	1,342	$	3

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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