FAIR VALUE (Tables)

12 Months Ended

Dec. 31, 2024

Schedule of Financial Assets Measured at Fair Value on Recurring Basis

The following table summarizes our fair value measurements at December 31, 2024 and 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)
December 31, 2024
Cash equivalents	$	2,048	$	2,048	$	—	$	—
Debt securities:
U.S. Treasury and other U.S. government corporations and agencies:
U.S. Treasury and agency obligations	3,227		—		3,227		—
Mortgage-backed securities	3,995		—		3,995		—
Tax-exempt municipal securities	526		—		526		—
Mortgage-backed securities:
Residential	522		—		522		—
Commercial	1,206		—		1,199		7
Asset-backed securities	1,403		—		1,330		73
Corporate debt securities	7,756		—		7,514		242
Total debt securities	18,635		—		18,313		322
Securities lending invested collateral	418		418		—		—
Total invested assets	$	21,101	$	2,466	$	18,313	$	322

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

Total invested assets	$	21,590	$	4,582	$	16,790	$	218

Schedule of Changes in Fair Value of Assets Measured using Significant Unobservable Inputs (Level 3)

During the years ended December 31, 2024 and 2023, the changes in the fair value of the assets measured using significant unobservable inputs (Level 3) were comprised of the following:


	For the year ended December 31, 2024		For the year ended December 31, 2023

	Private Placements
	(in millions)
Beginning balance at January 1	$	218	$	101
Total gains or losses:
Realized in earnings	(1)		—
Unrealized in other comprehensive income	(1)		3
Purchases	114		115
Sales	(3)		—
Settlements	(5)		—
Transfers Out	—		(8)
Transfers In	—		7
Balance at December 31	$	322	$	218

Schedule of Notional Amounts of Senior Notes Under Swap Agreements

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


	Notional amount at
Senior Notes Under Swap Agreements	December 31, 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		—
$1,250 million, 5.375% due April, 15, 2031	700		—
$400 million, 4.800% due March 15, 2047	200		—
$1,000 million, 5.750% due April 15, 2054	700		—

Schedule of Assumptions Used For Inputs In Fair Value Measurement

The table below presents the assumptions used for December 31, 2024 and 2023, respectively:

December 31, 2024

December 31, 2023

Annualized volatility

17.5% - 18.9%

16.1% to 17.8%

Credit spread

0.9% - 1.5%

0.9% to 1.1%

Revenue exit multiple

1.5x - 2.5x

Weighted average cost of capital

11.0% - 14.5%

11.0% to 12.5%

Long term growth rate

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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