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Fair Value (Tables)

9 Months Ended

Sep. 30, 2025

Assets and liabilities measured at fair value on a recurring basis

Assets and liabilities measured at fair value on a recurring basis are presented in the following tables. Corporate bonds and other includes obligations of the United States of America (U.S.) Treasury, government-sponsored enterprises, foreign governments and redeemable preferred stock.


September 30, 2025							Total Assets/Liabilities at Fair Value
(In millions)	Level 1		Level 2		Level 3
Assets
Fixed maturity securities:
Corporate bonds and other	$	227	$	24,795	$	1,400	$	26,422
States, municipalities and political subdivisions	—		8,332		44		8,376
Asset-backed	—		7,945		959		8,904
Total fixed maturity securities	227		41,072		2,403		43,702
Equity securities:
Common stock	187		—		10		197
Non-redeemable preferred stock	36		493		—		529
Total equity securities	223		493		10		726
Short-term and other	2,017		52		—		2,069
Total assets	$	2,467	$	41,617	$	2,413	$	46,497



Total liabilities	$	—	$	—	$	—	$	—


December 31, 2024							Total Assets/Liabilities at Fair Value
(In millions)	Level 1		Level 2		Level 3
Assets
Fixed maturity securities:
Corporate bonds and other	$	223	$	24,340	$	1,278	$	25,841
States, municipalities and political subdivisions	—		6,762		42		6,804
Asset-backed	—		7,590		876		8,466
Total fixed maturity securities	223		38,692		2,196		41,111
Equity securities:
Common stock	162		—		18		180
Non-redeemable preferred stock	36		441		2		479
Total equity securities	198		441		20		659
Short-term and other	1,852		70		—		1,922
Total assets	$	2,273	$	39,203	$	2,216	$	43,692



Total liabilities	$	—	$	—	$	—	$	—

Table of reconciliation for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs

The tables below present a reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3).


Level 3 (In millions)	Corporate bonds and other		States, municipalities and political subdivisions		Asset-backed		Equity securities		Total
Balance as of July 1, 2025	$	1,388	$	44	$	886	$	10	$	2,328
Total realized and unrealized investment gains (losses):
Reported in Net investment gains (losses)	—		—		3		—		3
Reported in Net investment income	—		—		5		—		5
Reported in Other comprehensive income (loss)	21		—		8		—		29
Total realized and unrealized investment gains (losses)	21		—		16		—		37
Purchases	24		—		93		—		117
Sales	—		—		—		—		—
Settlements	(33)		—		(36)		—		(69)
Transfers into Level 3	—		—		—		—		—
Transfers out of Level 3	—		—		—		—		—
Balance as of September 30, 2025	$	1,400	$	44	$	959	$	10	$	2,413
Unrealized gains (losses) on Level 3 assets and liabilities held as of September 30, 2025 recognized in Net income (loss) in the period	$	—	$	—	$	—	$	—	$	—
Unrealized gains (losses) on Level 3 assets and liabilities held as of September 30, 2025 recognized in Other comprehensive income (loss) in the period	21		—		9		—		30


Level 3 (In millions)	Corporate bonds and other		States, municipalities and political subdivisions		Asset-backed		Equity securities		Total
Balance as of July 1, 2024	$	1,129	$	43	$	887	$	14	$	2,073
Total realized and unrealized investment gains (losses):
Reported in Net investment gains (losses)	—		—		(3)		—		(3)
Reported in Net investment income	—		—		4		—		4
Reported in Other comprehensive income (loss)	59		2		30		—		91
Total realized and unrealized investment gains (losses)	59		2		31		—		92
Purchases	83		—		38		—		121
Sales	(10)		—		—		—		(10)
Settlements	(24)		—		(23)		—		(47)
Transfers into Level 3	—		—		—		—		—
Transfers out of Level 3	—		—		(18)		—		(18)
Balance as of September 30, 2024	$	1,237	$	45	$	915	$	14	$	2,211
Unrealized gains (losses) on Level 3 assets and liabilities held as of September 30, 2024 recognized in Net income (loss) in the period	$	—	$	—	$	—	$	—	$	—
Unrealized gains (losses) on Level 3 assets and liabilities held as of September 30, 2024 recognized in Other comprehensive income (loss) in the period	57		2		30		—		89


Level 3 (In millions)	Corporate bonds and other		States, municipalities and political subdivisions		Asset-backed		Equity securities		Total
Balance as of January 1, 2025	$	1,278	$	42	$	876	$	20	$	2,216
Total realized and unrealized investment gains (losses):
Reported in Net investment gains (losses)	1		—		(1)		2		2
Reported in Net investment income	—		—		14		(1)		13
Reported in Other comprehensive income (loss)	58		2		5		—		65
Total realized and unrealized investment gains (losses)	59		2		18		1		80
Purchases	123		—		142		—		265
Sales	—		—		—		(7)		(7)
Settlements	(75)		—		(77)		(4)		(156)
Transfers into Level 3	15		—		—		—		15
Transfers out of Level 3	—		—		—		—		—
Balance as of September 30, 2025	$	1,400	$	44	$	959	$	10	$	2,413
Unrealized gains (losses) on Level 3 assets and liabilities held as of September 30, 2025 recognized in Net income (loss) in the period	$	—	$	—	$	—	$	(1)	$	(1)
Unrealized gains (losses) on Level 3 assets and liabilities held as of September 30, 2025 recognized in Other comprehensive income (loss) in the period	55		2		6		—		63


Level 3 (In millions)	Corporate bonds and other		States, municipalities and political subdivisions		Asset-backed		Equity securities		Total
Balance as of January 1, 2024	$	1,045	$	44	$	901	$	24	$	2,014
Total realized and unrealized investment gains (losses):
Reported in Net investment gains (losses)	—		—		(10)		—		(10)
Reported in Net investment income	—		—		15		6		21
Reported in Other comprehensive income (loss)	39		1		14		—		54
Total realized and unrealized investment gains (losses)	39		1		19		6		65
Purchases	229		—		111		3		343
Sales	(10)		—		(14)		(19)		(43)
Settlements	(77)		—		(65)		—		(142)
Transfers into Level 3	11		—		—		—		11
Transfers out of Level 3	—		—		(37)		—		(37)
Balance as of September 30, 2024	$	1,237	$	45	$	915	$	14	$	2,211
Unrealized gains (losses) on Level 3 assets and liabilities held as of September 30, 2024 recognized in Net income (loss) in the period	$	—	$	—	$	—	$	2	$	2
Unrealized gains (losses) on Level 3 assets and liabilities held as of September 30, 2024 recognized in Other comprehensive income (loss) in the period	34		1		14		—		49

Quantitative information about significant unobservable inputs in the fair value measurement of level 3 assets

The following tables present quantitative information about the significant unobservable inputs utilized by the Company in the fair value measurements 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 these unobservable inputs is neither provided nor reasonably available to the Company. The weighted average rate is calculated based on fair value.

September 30, 2025

Estimated Fair Value
(In millions)

Valuation Technique(s)

Unobservable Input(s)

Range
(Weighted Average)

Fixed maturity securities

1,866

Discounted cash flow

Credit spread

1% - 7% (2%)

December 31, 2024

Estimated Fair Value
(In millions)

Valuation Technique(s)

Unobservable Input(s)

Range
(Weighted Average)

Fixed maturity securities

1,724

Discounted cash flow

Credit spread

1% - 6% (2%)

Carrying amount and estimated fair value of financial instrument assets and liabilities not measured at fair value

The carrying amount and estimated fair value of the Company's financial assets and liabilities which are not measured at fair value on the Condensed Consolidated Balance Sheets are presented in the following tables.


September 30, 2025	Carrying Amount		Estimated Fair Value
(In millions)			Level 1		Level 2		Level 3		Total
Assets
Mortgage loans	$	1,055	$	—	$	—	$	1,047	$	1,047
Liabilities
Short-term debt	$	500	$	—	$	500	$	—	$	500
Long-term debt	2,970		—		2,959		—		2,959


December 31, 2024	Carrying Amount		Estimated Fair Value
(In millions)			Level 1		Level 2		Level 3		Total
Assets
Mortgage loans	$	1,019	$	—	$	—	$	987	$	987

Liabilities
Short-term debt	$	—	$	—	$	—	$	—	$	—
Long-term debt	2,973		—		2,885		—		2,885

- 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.

+ References + Details