FAIR VALUE (Tables)

3 Months Ended

Mar. 31, 2025

Schedule of Financial Assets Measured at Fair Value on Recurring Basis

The following table summarizes our fair value measurements at March 31, 2025 and December 31, 2024, 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)
March 31, 2025
Cash equivalents	$	4,074	$	4,074	$	—	$	—
Debt securities:
U.S. Treasury and other U.S. government corporations and agencies:
U.S. Treasury and agency obligations	2,999		—		2,999		—
Mortgage-backed securities	3,973		—		3,973		—
Tax-exempt municipal securities	497		—		497		—
Mortgage-backed securities:
Residential	545		—		545		—
Commercial	1,155		—		1,139		16
Asset-backed securities	1,354		—		1,266		88
Corporate debt securities	7,775		—		7,493		282
Total debt securities	18,298		—		17,912		386
Securities lending invested collateral	594		594		—		—
Total invested assets	$	22,966	$	4,668	$	17,912	$	386

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

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

During the three months ended

March 31, 2025 and 2024, 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 three months ended March 31, 2025		For the three months ended March 31, 2024
	(in millions)
Beginning balance at January 1	$	322	$	218
Total gains or losses:
Realized in earnings	—		—
Unrealized in other comprehensive income	3		(2)
Purchases	63		11
Maturities	(2)		—
Sales	—		—
Settlements	—		(1)

Balance at March 31	$	386	$	226

Schedule of Notional Amounts of Senior Notes Under Swap Agreements

The following table summarizes the notional amounts at March 31, 2025 and December 31, 2024, respectively, for our senior notes under the swap agreements:


	Notional amount at
Senior Notes Under Swap Agreements	March 31, 2025		December 31, 2024
	(in millions)
$1,500 million, 5.375% due April 15, 2031	$	700	$	700
$750 million, 5.875% due March 1, 2033	650		650
$850 million, 5.950% due March 15, 2034	800		800
$750 million, 5.550% due May 1, 2035	200		—
$400 million, 4.625% due December 1, 2042	400		400
$750 million, 4.950% due October 1, 2044	400		400
$400 million, 4.800% due March 15, 2047	200		200
$500 million, 3.950% due August 15, 2049	450		450
$750 million, 5.500% due March 15, 2053	700		700
$1,000 million, 5.750% due April 15, 2054	700		700
Total Senior Notes Under Swap Agreements	$	5,200	$	5,000

Schedule of Assumptions Used For Inputs In Fair Value Measurement

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


	March 31, 2025		December 31, 2024
Annualized volatility	17.4% - 18.9%		17.5% - 18.9%
Credit spread	0.9% - 1.6%		0.9% - 1.5%
Revenue exit multiple	1.5x - 2.5x		1.5x - 2.5x
Weighted average cost of capital	11.0% - 14.5%		11.0% - 14.5%
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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