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Fair Value
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Fair Value
Assets and liabilities recorded at fair value in the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Level inputs, as defined by FASB guidance for fair value measurements and disclosures, are as follows:
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.
The following methods, assumptions and inputs were used to determine the fair value of each class of the following assets and liabilities recorded at fair value in the consolidated balance sheets:
Cash equivalents: Cash equivalents primarily consist of highly rated money market funds with maturities of three months or less and are purchased daily at par value with specified yield rates. Due to the short-term nature of the funds, we designate all cash equivalents as Level I.
Fixed maturity securities, available-for-sale: Fair values of available-for-sale fixed maturity securities are based on quoted market prices, where available. These fair values are obtained primarily from third-party pricing services, which generally use Level I or Level II inputs for the determination of fair value to facilitate fair value measurements and disclosures. Level II securities primarily include corporate securities, securities from states, municipalities and political subdivisions, mortgage-backed securities, United States Government securities, foreign government securities, and certain other asset-backed securities. For securities not actively traded, the pricing services may use quoted market prices of comparable instruments or discounted cash flow analyses, incorporating inputs that are currently observable in the markets for similar securities. We have controls in place to review the pricing services’ qualifications and procedures used to determine fair values. In addition, we periodically review the pricing services’ pricing methodologies, data sources and pricing inputs to ensure the fair values obtained are reasonable. Inputs that are often used in the valuation methodologies include, but are not limited to, broker quotes, benchmark yields, credit spreads, default rates and prepayment speeds. We also have certain fixed maturity securities, primarily collateralized loan obligation securities, rated note securities and corporate debt securities, that are designated Level III securities. For these securities, the valuation methodologies may incorporate broker quotes, net asset value of underlying loans or discounted cash flow analyses using assumptions for inputs such as expected cash flows, benchmark yields, credit spreads, default rates and prepayment speeds that are not observable in the markets.
Equity securities: Fair values of equity securities are generally designated as Level I and are based on quoted market prices. For certain equity securities, quoted market prices for the identical security are not always available, and the fair value is estimated by reference to similar securities for which quoted prices are available. These securities are designated Level II. We also have certain equity securities, including private equity securities, for which the fair value is estimated based on each security’s current condition and future cash flow projections. Such securities are designated Level III. The fair values of these private equity securities are generally based on either broker quotes or discounted cash flow projections using assumptions for inputs such as the weighted-average cost of capital, long-term revenue growth rates and earnings before interest, taxes, depreciation and amortization, and/or revenue multiples that are not observable in the markets.
Securities lending collateral: Fair values of securities lending collateral are based on quoted market prices, where available. These fair values are obtained primarily from third-party pricing services, which generally use Level I or Level II inputs for the determination of fair value, to facilitate fair value measurements and disclosures.
Derivatives: Fair values are generally based on the quoted market prices by the financial institution that is the counterparty to the derivative transaction. We independently verify prices provided by the counterparties using valuation models that incorporate market observable inputs for similar derivative transactions. These derivatives are designated as Level II securities. Fair values of certain derivatives where market observable inputs are not available are estimated using
assumptions such as cash flow projections, risk-free rates, volatility and details specific to the derivative contract. These derivatives are designated as Level III securities.
In addition, the following methods and assumptions were used to determine the fair value of each class of the qualified pension plan assets not defined above (see Note 11, “Retirement Benefits,” for fair values of qualified pension plan assets):
Mutual funds: Fair values are based on quoted market prices, which represent the net asset value (“NAV”) of shares held.
Partnership investments: Fair values are estimated based on the plan’s proportionate ownership of the partnerships’ net assets as reported in their periodic capital statements and is measured using NAV as a practical expedient. The partnerships primarily include a real estate investment fund that invests in real estate entities and provides for quarterly redemptions with 45 days' notice prior to quarter-end, with no unfunded commitments.
Collective investment trusts (“CITs”): Fair values are based on the NAV of the units held by the plan at year end and are measured using NAV as a practical expedient. The CITs are passive index funds that seek investment results that generally correspond to the performance of the Bloomberg U.S. Intermediate Treasury Index. Redemptions are permitted daily with two days' notice.
Commingled fund: Fair value is based on NAV per fund share and is measured using NAV as a practical expedient. The fund primarily invests in publicly traded equity securities of issuers within the fund’s benchmark. The objective of the fund is to produce returns in excess of the relevant benchmark over rolling five-year periods. Redemptions are permitted on the first and fifteenth of the month with seven business days' notice.
Insurance company contracts: Fair value is based on the fair value of the underlying investments of the group annuity investment account as determined by the insurance company. Investments primarily consist of intermediate-term fixed income investments, commercial and residential mortgages, asset-backed securities, and U.S. government and agency-backed securities.
A summary of fair value measurements by level for assets and liabilities measured at fair value on a recurring basis at December 31, 2025 and 2024 is as follows:
Level ILevel IILevel IIITotal
December 31, 2025
Assets:
Cash equivalents$5,184 $— $— $5,184 
Fixed maturity securities, available-for-sale:
United States Government securities— 1,503 — 1,503 
Government sponsored securities— 81 — 81 
Foreign government securities— 13 — 13 
States, municipalities and political subdivisions, tax-exempt— 3,701 — 3,701 
Corporate securities— 13,373 410 13,783 
Residential mortgage-backed securities— 3,090 17 3,107 
Commercial mortgage-backed securities— 2,073 — 2,073 
Other asset-backed securities— 1,878 866 2,744 
Total fixed maturity securities, available-for-sale— 25,712 1,293 27,005 
Equity securities:
Exchange traded funds650 — — 650 
Common equity securities— 35 — 35 
Private equity securities— — 55 55 
Total equity securities650 35 55 740 
Other invested assets - common equity securities6 — — 6 
Securities lending collateral— 2,692 — 2,692 
Derivatives - other assets— 62 — 62 
Total assets$5,840 $28,501 $1,348 $35,689 
Liabilities:
Derivatives - other liabilities$— $(28)$— $(28)
Total liabilities$— $(28)$— $(28)
December 31, 2024
Assets:
Cash equivalents$3,199 $— $— $3,199 
Fixed maturity securities, available-for-sale:
United States Government securities— 1,824 — 1,824 
Government sponsored securities— 151 — 151 
Foreign government securities— 17 — 17 
States, municipalities and political subdivisions, tax-exempt— 3,052 — 3,052 
Corporate securities— 13,873 43 13,916 
Residential mortgage-backed securities— 3,041 10 3,051 
Commercial mortgage-backed securities— 1,748 — 1,748 
Other asset-backed securities— 1,730 747 2,477 
Total fixed maturity securities, available-for-sale— 25,436 800 26,236 
Equity securities:
Exchange traded funds1,002 — — 1,002 
Common equity securities87 31 — 118 
Private equity securities— — 72 72 
Total equity securities1,089 31 72 1,192 
Other invested assets - common equity securities18 — — 18 
Securities lending collateral— 2,306 — 2,306 
Derivatives - other assets— 5 — 5 
Total assets$4,306 $27,778 $872 $32,956 
Liabilities:
Derivatives - other liabilities$— $(150)$— $(150)
Total liabilities$— $(150)$— $(150)
A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using Level III inputs for the years ended December 31, 2025, 2024 and 2023 is as follows:
Corporate
Securities		Residential
Mortgage-
backed
Securities		Other Asset-Backed SecuritiesEquity
Securities		Total
Year ended December 31, 2025
Beginning balance at January 1, 2025$43 $10 $747 $72 $872 
Total gains (losses): 
Recognized in net income3 — — (9)(6)
Recognized in accumulated other comprehensive income12 — 17 — 29 
Purchases
384 13 162 54 613 
Sales— — (8)(62)(70)
Settlements(7)— (53)— (60)
Transfers into Level III1 4 1 — 6 
Transfers out of Level III(26)(10)— — (36)
Ending balance at December 31, 2025$410 $17 $866 $55 $1,348 
Change in unrealized gains or losses included in net income related to assets still held at December 31, 2025$— $— $— $(10)$(10)
Year ended December 31, 2024
Beginning balance at January 1, 2024$46 $2 $539 $78 $665 
Total gains (losses):
Recognized in net income1 — — (6)(5)
Recognized in accumulated other comprehensive income— — 12 — 12 
Purchases26 10 118 17 171 
Sales(5)(2)(10)(17)(34)
Settlements(4)— (1)— (5)
Transfers into Level III— — 92 — 92 
Transfers out of Level III(21)— (3)— (24)
Ending balance at December 31, 2024$43 $10 $747 $72 $872 
Change in unrealized gains or losses included in net income related to assets still held at December 31, 2024$— $— $— $(5)$(5)
Year ended December 31, 2023
Beginning balance at January 1, 2023$137 $— $356 $88 $581 
Total gains (losses):
Recognized in net income(10)— — (4)(14)
Recognized in accumulated other comprehensive income6 — 3 — 9 
Purchases38 — 191 15 244 
Sales(88)— (17)(21)(126)
Settlements(21)— — — (21)
Transfers into Level III6 2 6 — 14 
Transfers out of Level III(22)— — — (22)
Ending balance at December 31, 2023$46 $2 $539 $78 $665 
Change in unrealized gains or losses included in net income related to assets still held at December 31, 2023$— $— $— $(6)$(6)
There were no individually material transfers into or out of Level III during the years ended December 31, 2025, 2024 or 2023. There were no adjustments to quoted market prices obtained from the pricing services during the years ended December 31, 2025, 2024 or 2023.
Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances. We completed our
acquisitions of Centers, CareBridge and Paragon in 2024. The net assets acquired in these acquisitions and resulting goodwill and other intangible assets were initially recorded at fair value primarily using Level III inputs. The majority of assets acquired and liabilities assumed were recorded at their carrying values as of the respective date of acquisition, as their carrying values approximated their fair values due to their short-term nature. The fair values of goodwill and other intangible assets acquired in our acquisitions of Centers, CareBridge and Paragon were finalized as of December 31, 2025 based on a valuation performed using the income approach. The income approach estimates fair value based on the present value of the cash flows that the assets could be expected to generate in the future. We developed internal estimates for the expected cash flows and discount rate in the present value calculation.
Also, as discussed further in Note 5 “Investments”, we entered into agreements which included certain put and call options associated with our minority interest ownership of Mosaic Health in 2024 and Liberty Dental in 2023 (as amended in 2025). The resulting net put option liabilities were recorded at their fair values measured at the dates of acquisition using Level III inputs with an election not to mark the derivative to market, which is further discussed and disclosed in Note 6, “Derivatives”. The net put option fair value for Mosaic Health was $2,717 and $1,330 at December 31, 2025 and 2024, respectively. The net put option fair value for Liberty Dental was $327 and $543 at December 31, 2025 and 2024, respectively.
Other than the assets acquired and liabilities assumed in connection with our acquisitions of Centers, CareBridge and Paragon, and the net put options on Mosaic Health and Liberty Dental described above, there were no material assets or liabilities measured at fair value on a nonrecurring basis during the years ended December 31, 2025 or 2024.
Our valuation policy is determined by members of our treasury and accounting departments. Whenever possible, our policy is to obtain quoted market prices in active markets to estimate fair values for recognition and disclosure purposes. Where quoted market prices in active markets are not available, fair values are estimated using discounted cash flow analyses, broker quotes, unobservable inputs or other valuation techniques. These techniques are significantly affected by our assumptions, including discount rates and estimates of future cash flows. The use of assumptions for unobservable inputs for the determination of fair value involves a level of judgment and uncertainty. Changes in assumptions that reasonably could have been different at the reporting date may result in a higher or lower determination of fair value. Changes in fair value measurements, if significant, may affect performance of cash flows.
Potential taxes and other transaction costs are not considered in estimating fair values. Our valuation policy is generally to obtain quoted prices for each security from third-party pricing services, which are derived through recently reported trades for identical or similar securities, making adjustments through the reporting date based upon available market observable information. As we are responsible for the determination of fair value, we perform analysis on the prices received from the pricing services to determine whether the prices are reasonable estimates of fair value. This analysis is performed by our internal treasury personnel who are familiar with our investment portfolios, the pricing services engaged and the valuation techniques and inputs used. Our analysis includes procedures such as a review of month-to-month price fluctuations and price comparisons to secondary pricing services.
In addition to the preceding disclosures on assets recorded at fair value in the consolidated balance sheets, FASB guidance also requires the disclosure of fair values for certain other financial instruments for which it is practicable to estimate fair value, whether or not such values are recognized in the consolidated balance sheets.
Non-financial instruments such as property and equipment, other current assets, deferred income taxes, intangible assets and certain financial instruments, such as limited partnerships, joint ventures, other non-controlled corporations, corporate-owned life insurance policies, and policy liabilities, are excluded from the fair value disclosures. Therefore, the fair value amounts cannot be aggregated to determine our underlying economic value.
The carrying amounts reported in the consolidated balance sheets for cash, premium receivables, self-funded receivables, other receivables, unearned income, accounts payable and accrued expenses, and certain other current liabilities approximate fair value because of the short-term nature of these items. These assets and liabilities are not listed in the table below.
The following methods and assumptions were used to estimate the fair value of each class of financial instrument that is recorded at its carrying value on the consolidated balance sheets:
Other invested assets: Other invested assets primarily include our mortgage loans and notes receivables. Mortgage loans
are carried at amortized cost net of loss allowance. The fair value of mortgage loans is measured using discounted cash flows benchmarked against the 10-year U.S. Treasury yield plus a market rate spread. The notes receivables are measured at their amortized cost. The fair value of notes receivables is the present value of discounted future cash flows.
Short-term borrowings: The fair value of our short-term borrowings is based on quoted market prices for the same or similar debt, or if no quoted market prices were available, on the current market interest rates estimated to be available to us for debt of similar terms and remaining maturities.
Long-term debt—senior unsecured notes and surplus notes: The fair values of our notes are based on quoted market prices in active markets for the same or similar debt, or, if no quoted market prices are available, on the current market observable rates estimated to be available to us for debt of similar terms and remaining maturities.
Options: The options consist of put, call and purchase price true-up options associated with our equity investment in the Mosaic Health joint venture and the put and call options associated with our equity investment in Liberty Dental. The fair value of the net put option associated with Mosaic Health is based on a Monte Carlo simulation, which relies on assumptions including cash flow projections, risk-free rates, volatility and details specific to the options. The fair value of the net put option associated with Liberty Dental is based on the discounted present value of estimated future option exercise prices.
A summary of the estimated fair values by level of each class of financial instrument that is recorded at its carrying value on our consolidated balance sheets at December 31, 2025 and 2024 is as follows:
 Carrying
Value		Estimated Fair Value
 Level ILevel IILevel IIITotal
December 31, 2025
Assets:
Other invested assets$781 $— $— $762 $762 
Liabilities:
Debt:
Short-term borrowings150 — 150 — 150 
Notes31,896 — 30,207 — 30,207 
Options
1,726 — — 3,044 3,044 
December 31, 2024
Assets:
Other invested assets$642 $— $— $610 $610 
Liabilities:
Debt:
Short-term borrowings365 — 365 — 365 
Notes30,867 — 28,460 — 28,460 
Options
1,415 — — 1,873 1,873