FAIR VALUE (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Financial Assets Measured at Fair Value on Recurring Basis

The following table summarizes our fair value measurements at December 31, 2025 and 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)
December 31, 2025
Cash equivalents	$	3,945	$	3,945	$	—	$	—
Debt securities:
U.S. Treasury and other U.S. government corporations and agencies:
U.S. Treasury and agency obligations	2,278		—		2,278		—
Mortgage-backed securities	3,651		—		3,651		—
Tax-exempt municipal securities	428		—		428		—
Mortgage-backed securities:
Residential	388		—		388		—
Commercial	1,012		—		996		16
Asset-backed securities	783		—		656		127
Corporate debt securities	7,656		—		7,359		297
Total debt securities	16,196		—		15,756		440
Securities lending invested collateral	638		638		—		—
Total invested assets	$	20,779	$	4,583	$	15,756	$	440

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 years ended December 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:


	2025								2024
	Mortgage-backed securities: Commercial		Asset-backed securities		Corporate debt securities		Total		Mortgage-backed securities: Commercial		Asset-backed securities		Corporate debt securities		Total
	(in millions)								(in millions)
Beginning balance at January 1	$	7	$	73	$	242	$	322	$	4	$	38	$	176	$	218
Total gains or losses:
Realized in earnings	—		—		—		—		(1)		—		—		(1)
Unrealized in other comprehensive income	—		1		8		9		—		—		(1)		(1)
Purchases	9		55		64		128		6		36		72		114
Sales	—		—		—		—		(2)		—		(1)		(3)
Settlements	—		(2)		(17)		(19)		—		(1)		(4)		(5)
Transfers Out	—		—		—		—		—		—		—		—
Transfers In	—		—		—		—		—		—		—		—
Balance at December 31	$	16	$	127	$	297	$	440	$	7	$	73	$	242	$	322

Schedule of Notional Amounts of Senior Notes Under Swap Agreements

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


	Notional amount at
Senior Notes Under Swap Agreements	December 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	600		—
$400 million, 4.625% due December 1, 2042	400		400
$750 million, 4.950% due October 1, 2044	600		400
$400 million, 4.800% due March 15, 2047	350		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	800		700
$500 million, 6.000% due May 1, 2055	450		—
Total Senior Notes Under Swap Agreements	$	6,500	$	5,000

Schedule of Assumptions Used For Inputs In Fair Value Measurement

The table below presents the assumptions used for December 31, 2025 and 2024, respectively:

December 31, 2025

December 31, 2024

Annualized volatility

18.8% - 19.9%

17.5% to 18.9%

Credit spread

1.1% - 1.6%

0.9% to 1.5%

Revenue exit multiple

1.5x - 2.5x

Weighted average cost of capital

10.5% - 14.5%

11.0% to 14.5%

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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