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Fair Value (Tables)

6 Months Ended

Jun. 30, 2026

Assets and liabilities measured at fair value on a recurring basis

Assets 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. The Company had no liabilities measured at fair value as of June 30, 2026 or December 31, 2025.


June 30, 2026							Total
(In millions)	Level 1		Level 2		Level 3
Assets
Fixed maturity securities:
Corporate bonds and other	$	243	$	24,376	$	1,594	$	26,213
States, municipalities and political subdivisions	—		8,791		44		8,835
Asset-backed	—		7,891		943		8,834
Total fixed maturity securities	243		41,058		2,581		43,882
Equity securities:
Common stock	239		—		10		249
Non-redeemable preferred stock	34		510		—		544
Total equity securities	273		510		10		793
Short-term and other	1,503		46		—		1,549
Total assets	$	2,019	$	41,614	$	2,591	$	46,224


December 31, 2025							Total
(In millions)	Level 1		Level 2		Level 3
Assets
Fixed maturity securities:
Corporate bonds and other	$	238	$	24,529	$	1,483	$	26,250
States, municipalities and political subdivisions	—		8,386		45		8,431
Asset-backed	—		7,723		998		8,721
Total fixed maturity securities	238		40,638		2,526		43,402
Equity securities:
Common stock	224		—		13		237
Non-redeemable preferred stock	35		497		—		532
Total equity securities	259		497		13		769
Short-term and other	2,086		51		—		2,137
Total assets	$	2,583	$	41,186	$	2,539	$	46,308

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 April 1, 2026	$	1,514	$	44	$	955	$	12	$	2,525
Total realized and unrealized investment gains (losses):
Reported in Net investment gains (losses)	—		—		(3)		1		(2)
Reported in Net investment income	—		—		5		2		7
Reported in Other comprehensive income (loss)	2		—		(5)		—		(3)
Total realized and unrealized investment gains (losses)	2		—		(3)		3		2
Purchases	101		—		42		—		143
Sales	—		—		—		(5)		(5)
Settlements	(23)		—		(26)		—		(49)
Transfers into Level 3	—		—		—		—		—
Transfers out of Level 3	—		—		(25)		—		(25)
Balance as of June 30, 2026	$	1,594	$	44	$	943	$	10	$	2,591
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2026 recognized in Net income (loss) in the period	$	—	$	—	$	—	$	—	$	—
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2026 recognized in Other comprehensive income (loss) in the period	2		—		(5)		—		(3)


Level 3 (In millions)	Corporate bonds and other		States, municipalities and political subdivisions		Asset-backed		Equity securities		Total
Balance as of April 1, 2025	$	1,351	$	44	$	889	$	17	$	2,301
Total realized and unrealized investment gains (losses):
Reported in Net investment gains (losses)	1		—		(4)		—		(3)
Reported in Net investment income	—		—		5		—		5
Reported in Other comprehensive income (loss)	16		—		(4)		—		12
Total realized and unrealized investment gains (losses)	17		—		(3)		—		14
Purchases	44		—		22		—		66
Sales	—		—		—		(7)		(7)
Settlements	(24)		—		(22)		—		(46)
Transfers into Level 3	—		—		—		—		—
Transfers out of Level 3	—		—		—		—		—
Balance as of June 30, 2025	$	1,388	$	44	$	886	$	10	$	2,328
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2025 recognized in Net income (loss) in the period	$	—	$	—	$	—	$	(1)	$	(1)
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2025 recognized in Other comprehensive income (loss) in the period	16		—		(4)		—		12


Level 3 (In millions)	Corporate bonds and other		States, municipalities and political subdivisions		Asset-backed		Equity securities		Total
Balance as of January 1, 2026	$	1,483	$	45	$	998	$	13	$	2,539
Total realized and unrealized investment gains (losses):
Reported in Net investment gains (losses)	(3)		—		(6)		1		(8)
Reported in Net investment income	—		—		10		1		11
Reported in Other comprehensive income (loss)	(22)		(1)		(21)		—		(44)
Total realized and unrealized investment gains (losses)	(25)		(1)		(17)		2		(41)
Purchases	164		—		82		—		246
Sales	—		—		—		(5)		(5)
Settlements	(28)		—		(46)		—		(74)
Transfers into Level 3	—		—		—		—		—
Transfers out of Level 3	—		—		(74)		—		(74)
Balance as of June 30, 2026	$	1,594	$	44	$	943	$	10	$	2,591
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2026 recognized in Net income (loss) in the period	$	—	$	—	$	—	$	(1)	$	(1)
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2026 recognized in Other comprehensive income (loss) in the period	(22)		(1)		(21)		—		(44)


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		—		(4)		2		(1)
Reported in Net investment income	—		—		9		(1)		8
Reported in Other comprehensive income (loss)	37		2		(3)		—		36
Total realized and unrealized investment gains (losses)	38		2		2		1		43
Purchases	99		—		49		—		148
Sales	—		—		—		(7)		(7)
Settlements	(42)		—		(41)		(4)		(87)
Transfers into Level 3	15		—		—		—		15
Transfers out of Level 3	—		—		—		—		—
Balance as of June 30, 2025	$	1,388	$	44	$	886	$	10	$	2,328
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2025 recognized in Net income (loss) in the period	$	—	$	—	$	—	$	(1)	$	(1)
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2025 recognized in Other comprehensive income (loss) in the period	37		2		(3)		—		36

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.

June 30, 2026

Estimated Fair Value
(In millions)

Valuation Technique(s)

Unobservable Input(s)

Range
(Weighted Average)

Fixed maturity securities

2,068

Discounted cash flow

Credit spread

1% - 11% (2%)

December 31, 2025

Estimated Fair Value
(In millions)

Valuation Technique(s)

Unobservable Input(s)

Range
(Weighted Average)

Fixed maturity securities

1,927

Discounted cash flow

Credit spread

1% - 11% (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.


June 30, 2026	Carrying Amount		Estimated Fair Value
(In millions)			Level 1		Level 2		Level 3		Total
Assets
Mortgage loans	$	1,037	$	—	$	—	$	1,020	$	1,020
Liabilities

Long-term debt	$	2,973	$	—	$	2,926	$	—	$	2,926


December 31, 2025	Carrying Amount		Estimated Fair Value
(In millions)			Level 1		Level 2		Level 3		Total
Assets
Mortgage loans	$	1,079	$	—	$	—	$	1,072	$	1,072

Liabilities

Long-term debt	$	2,971	$	—	$	2,967	$	—	$	2,967

- 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