FAIR VALUE (Tables)

9 Months Ended

Sep. 30, 2024

Schedule of Financial Assets Measured at Fair Value on Recurring Basis

The following table summarizes our fair value measurements at September 30, 2024 and December 31, 2023, respectively, for financial assets measured at fair value on a recurring basis:


	Fair Value Measurements Using
	Fair Value		Quoted Prices in Active Markets (Level 1)		Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
	(in millions)
September 30, 2024
Cash equivalents	$	4,941	$	4,941	$	—	$	—
Debt securities:
U.S. Treasury and other U.S. government corporations and agencies:
U.S. Treasury and agency obligations	3,183		—		3,183		—
Mortgage-backed securities	4,183		—		4,183		—
Tax-exempt municipal securities	584		—		584		—
Mortgage-backed securities:
Residential	502		—		500		2
Commercial	1,216		—		1,216		—
Asset-backed securities	1,524		—		1,479		45
Corporate debt securities	8,241		—		7,997		244
Total debt securities	19,433		—		19,142		291
Securities lending invested collateral	361		361		—		—
Total invested assets	$	24,735	$	5,302	$	19,142	$	291

December 31, 2023
Cash equivalents	$	4,582	$	4,582	$	—	$	—
Debt securities:
U.S. Treasury and other U.S. government corporations and agencies:
U.S. Treasury and agency obligations	2,667		—		2,667		—
Mortgage-backed securities	3,522		—		3,522		—
Tax-exempt municipal securities	858		—		858		—
Mortgage-backed securities:
Residential	400		—		396		4
Commercial	1,345		—		1,345		—
Asset-backed securities	1,771		—		1,733		38
Corporate debt securities	6,445		—		6,269		176
Total debt securities	$	17,008	$	—	$	16,790	$	218

Schedule of Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

During the nine months ended

September 30, 2024 and 2023, the changes in the fair value of the assets measured using significant unobservable inputs (Level 3) were comprised of the following:


	Private Placements
	For the nine months ended September 30, 2024		For the nine months ended September 30, 2023
	(in millions)
Beginning balance at January 1	$	218	$	101
Total gains or losses:
Realized in earnings	—		—
Unrealized in other comprehensive income	6		(1)
Purchases	72		13
Maturities	—		(4)
Sales	—		—
Settlements	(5)		—
Transfer out	—		(4)
Balance at September 30	$	291	$	105

Schedule of Notional Amounts of Outstanding Derivative Positions

The following table summarizes the notional amounts at September 30, 2024 and December 31, 2023, respectively, for our senior notes under the swap agreements:


	September 30, 2024		December 31, 2023
	(in millions)
$750 million, 5.875% due March 1, 2033	$	650	$	650
$850 million, 5.950% due March 15, 2034	800		400
$500 million, 3.950% due August 15, 2049	450		450
$750 million, 5.500% due March 15, 2053	700		300
$400 million, 4.625% due December 1, 2042	400		—
$750 million, 4.950% due October 1, 2044	400		—
$1,000 million, 5.750% due April 15, 2054	400		—

Schedule of Assumptions Used For Inputs In Fair Value Measurement

The table below presents the assumptions used for each reporting period.


	September 30, 2024		December 31, 2023
Annualized volatility	16.5% - 18.3%		16.1% - 17.8%
Credit spread	0.8% - 1.4%		0.9% - 1.1%
Revenue exit multiple	1.5x - 2.5x		1.5x - 2.5x
Weighted average cost of capital	11.0% - 14.0%		11.0% - 12.5%
Long term growth rate	3.0	%	3.0	%

- 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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