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FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2025

Fair Value Hierarchy, Assets and Liabilities Measured on Recurring Basis

The following tables present the fair value hierarchy levels of the Company's assets and liabilities that are measured and carried at fair value on a recurring basis as of December 31.


	2025
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Assets:
Securities available-for-sale, carried at fair value:
Fixed maturity securities:
Government and agencies		$	13,921		$	686		$	0		$	14,607
Municipalities		0			1,930			0			1,930
Mortgage- and asset-backed securities		0			2,072			2,294			4,366
Public utilities		0			6,298			876			7,174
Sovereign and supranational		0			383			19			402
Banks/financial institutions		0			9,235			9			9,244
Other corporate		0			26,239			159			26,398
Total fixed maturity securities		13,921			46,843			3,357			64,121
Equity securities		727			0			160			887
Other investments		1,373			0			0			1,373
Cash and cash equivalents		6,245			0			0			6,245
Other assets:
Foreign currency swaps		0			45			0			45
Foreign currency forwards		0			120			0			120


Interest rate swaps		0			14			0			14

Total other assets		0			179			0			179
Total assets		$	22,266		$	47,022		$	3,517		$	72,805
Liabilities:
Other liabilities:
Foreign currency swaps		$	0		$	765		$	0		$	765
Foreign currency forwards		0			18			0			18


Interest rate swaps		0			189			0			189

Total liabilities		$	0		$	972		$	0		$	972


	2024
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Assets:
Securities available-for-sale, carried at fair value:
Fixed maturity securities:
Government and agencies		$	17,088		$	758		$	0		$	17,846
Municipalities		0			2,034			0			2,034
Mortgage- and asset-backed securities		0			2,407			1,156			3,563
Public utilities		0			6,398			647			7,045
Sovereign and supranational		0			393			23			416
Banks/financial institutions		0			8,946			10			8,956
Other corporate		0			25,178			231			25,409
Total fixed maturity securities		17,088			46,114			2,067			65,269
Equity securities		639			0			157			796
Other investments		1,599			0			0			1,599
Cash and cash equivalents		6,229			0			0			6,229
Other assets:
Foreign currency swaps		0			55			0			55
Foreign currency forwards		0			185			0			185


Total other assets		0			240			0			240
Total assets		$	25,555		$	46,354		$	2,224		$	74,133
Liabilities:
Other liabilities:
Foreign currency swaps		$	0		$	604		$	0		$	604


Interest rate swaps		0			329			0			329
Total liabilities		$	0		$	933		$	0		$	933

Fair Value Hierarchy, Assets and Liabilities Carried at Cost or Amortized Cost

The following tables present the carrying amount and fair value categorized by fair value hierarchy level for the Company's financial instruments that are not carried at fair value as of December 31.


	2025
(In millions)	Carrying Value			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Assets:
Securities held-to-maturity, carried at amortized cost:
Fixed maturity securities:
Government and agencies		$	15,459		$	14,696		$	131		$	0		$	14,827
Municipalities		235			0			229			0			229

Public utilities		32			0			29			0			29
Sovereign and supranational		378			0			375			0			375

Other corporate		16			0			16			0			16
Commercial mortgage and other loans		9,765			0			0			9,617			9,617
Other investments (1)		28			0			28			0			28
Total assets		$	25,913		$	14,696		$	808		$	9,617		$	25,121
Liabilities:
Other policyholders’ funds		$	5,445		$	0		$	0		$	5,376		$	5,376
Notes payable (excluding leases)		8,330			0			7,167			682			7,849
Total liabilities		$	13,775		$	0		$	7,167		$	6,058		$	13,225

(1) Excludes policy loans of $210, equity method investments of $4,109, and REO of $902, at carrying value


	2024
(In millions)	Carrying Value			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Assets:
Securities held-to-maturity, carried at amortized cost:
Fixed maturity securities:
Government and agencies		$	15,309		$	15,916		$	143		$	0		$	16,059
Municipalities		235			0			257			0			257

Public utilities		32			0			33			0			33
Sovereign and supranational		374			0			405			0			405

Other corporate		16			0			18			0			18
Commercial mortgage and other loans		10,869			0			0			10,653			10,653
Other investments (1)		39			0			39			0			39
Total assets		$	26,874		$	15,916		$	895		$	10,653		$	27,464
Liabilities:
Other policyholders’ funds		$	5,460		$	0		$	0		$	5,389		$	5,389
Notes payable (excluding leases)		7,402			0			6,352			675			7,027
Total liabilities		$	12,862		$	0		$	6,352		$	6,064		$	12,416

(1) Excludes policy loans of $203, equity method investments of $3,435, and REO of $682, at carrying value

Fair Value, Assets Securities Carried At Fair Value, Primary Pricing Sources

The following tables present the pricing sources for the fair values of the Company's fixed maturity and equity securities as of December 31.


	2025
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Securities available-for-sale, carried at fair value:
Fixed maturity securities:
Government and agencies:
Third-party pricing vendor		$	13,921		$	383		$	0		$	14,304
Internal		0			303			0			303

Total government and agencies		13,921			686			0			14,607
Municipalities:
Third-party pricing vendor		0			1,706			0			1,706
Internal		0			224			0			224

Total municipalities		0			1,930			0			1,930
Mortgage- and asset-backed securities:
Third-party pricing vendor		0			1,824			0			1,824
Internal		0			248			0			248
Broker/other		0			0			2,294			2,294
Total mortgage- and asset-backed securities		0			2,072			2,294			4,366
Public utilities:
Third-party pricing vendor		0			3,660			0			3,660
Internal		0			2,638			0			2,638
Broker/other		0			0			876			876
Total public utilities		0			6,298			876			7,174
Sovereign and supranational:
Third-party pricing vendor		0			79			0			79
Internal		0			304			0			304
Broker/other		0			0			19			19
Total sovereign and supranational		0			383			19			402
Banks/financial institutions:
Third-party pricing vendor		0			5,605			0			5,605
Internal		0			3,630			5			3,635
Broker/other		0			0			4			4
Total banks/financial institutions		0			9,235			9			9,244
Other corporate:
Third-party pricing vendor		0			21,294			0			21,294
Internal		0			4,945			20			4,965
Broker/other		0			0			139			139
Total other corporate		0			26,239			159			26,398
Total securities available-for-sale		$	13,921		$	46,843		$	3,357		$	64,121
Equity securities, carried at fair value:
Third-party pricing vendor		$	727		$	0		$	0		$	727
Internal		0			0			24			24
Broker/other		0			0			136			136
Total equity securities		$	727		$	0		$	160		$	887


	2024
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Securities available-for-sale, carried at fair value:
Fixed maturity securities:
Government and agencies:
Third-party pricing vendor		$	17,088		$	446		$	0		$	17,534
Internal		0			312			0			312

Total government and agencies		17,088			758			0			17,846
Municipalities:
Third-party pricing vendor		0			1,791			0			1,791
Internal		0			243			0			243

Total municipalities		0			2,034			0			2,034
Mortgage- and asset-backed securities:
Third-party pricing vendor		0			2,352			0			2,352
Internal		0			55			37			92
Broker/other		0			0			1,119			1,119
Total mortgage- and asset-backed securities		0			2,407			1,156			3,563
Public utilities:
Third-party pricing vendor		0			3,628			0			3,628
Internal		0			2,770			0			2,770
Broker/other		0			0			647			647
Total public utilities		0			6,398			647			7,045
Sovereign and supranational:
Third-party pricing vendor		0			78			0			78
Internal		0			315			0			315
Broker/other		0			0			23			23
Total sovereign and supranational		0			393			23			416
Banks/financial institutions:
Third-party pricing vendor		0			4,975			0			4,975
Internal		0			3,971			5			3,976
Broker/other		0			0			5			5
Total banks/financial institutions		0			8,946			10			8,956
Other corporate:
Third-party pricing vendor		0			20,051			0			20,051
Internal		0			5,127			116			5,243
Broker/other		0			0			115			115
Total other corporate		0			25,178			231			25,409
Total securities available-for-sale		$	17,088		$	46,114		$	2,067		$	65,269
Equity securities, carried at fair value:
Third-party pricing vendor		$	639		$	0		$	0		$	639
Internal		0			0			26			26
Broker/other		0			0			131			131
Total equity securities		$	639		$	0		$	157		$	796

Fair Value, Assets Carried At Amortized Cost, Primary Pricing Sources


	2025
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Securities held-to-maturity, carried at amortized cost:
Fixed maturity securities:
Government and agencies:
Third-party pricing vendor		$	14,696		$	131		$	0		$	14,827
Total government and agencies		14,696			131			0			14,827
Municipalities:
Third-party pricing vendor		0			229			0			229
Total municipalities		0			229			0			229




Public utilities:
Third-party pricing vendor		0			29			0			29
Total public utilities		0			29			0			29
Sovereign and supranational:
Third-party pricing vendor		0			188			0			188
Internal		0			187			0			187

Total sovereign and supranational		0			375			0			375



Other corporate:
Third-party pricing vendor		0			16			0			16
Total other corporate		0			16			0			16
Total securities held-to-maturity		$	14,696		$	780		$	0		$	15,476


	2024
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Securities held-to-maturity, carried at amortized cost:
Fixed maturity securities:
Government and agencies:
Third-party pricing vendor		$	15,916		$	143		$	0		$	16,059
Total government and agencies		15,916			143			0			16,059
Municipalities:
Third-party pricing vendor		0			257			0			257
Total municipalities		0			257			0			257




Public utilities:
Third-party pricing vendor		0			33			0			33
Total public utilities		0			33			0			33
Sovereign and supranational:
Third-party pricing vendor		0			198			0			198
Internal		0			207			0			207

Total sovereign and supranational		0			405			0			405



Other corporate:
Third-party pricing vendor		0			18			0			18
Total other corporate		0			18			0			18
Total securities held-to-maturity		$	15,916		$	856		$	0		$	16,772

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

The following tables present the changes in fair value of the Company's investments carried at fair value classified as Level 3 as of December 31.


2025
	Fixed Maturity Securities										Equity Securities
(In millions)	Mortgage- and Asset- Backed Securities		Public Utilities		Sovereign and Supranational		Banks/ Financial Institutions		Other Corporate				Total
Balance, beginning of period	$	1,156	$	647	$	23	$	10	$	231	$	157	$	2,224
Net investment gains (losses) included in earnings	1		1		0		0		(2)		(4)		(4)
Unrealized gains (losses) included in other comprehensive income (loss)	24		29		0		(1)		5		0		57
Purchases, issuances, sales and settlements:
Purchases	909		242		0		0		24		9		1,184
Issuances	0		0		0		0		0		0		0
Sales	0		1		0		0		(2)		(2)		(3)
Settlements	(153)		(44)		(4)		0		(2)		0		(203)
Transfers into Level 3	395		0		0		0		0		0		395
Transfers out of Level 3	(38)		0		0		0		(95)		0		(133)
Balance, end of period	$	2,294	$	876	$	19	$	9	$	159	$	160	$	3,517
Changes in unrealized gains (losses) relating to Level 3 assets and liabilities still held at the end of the period included in earnings	$	1	$	1	$	0	$	0	$	0	$	0	$	2


2024
	Fixed Maturity Securities										Equity Securities
(In millions)	Mortgage- and Asset- Backed Securities		Public Utilities		Sovereign and Supranational		Banks/ Financial Institutions		Other Corporate				Total
Balance, beginning of period	$	772	$	253	$	30	$	78	$	648	$	248	$	2,029
Net investment gains (losses) included in earnings	3		1		0		0		0		(9)		(5)
Unrealized gains (losses) included in other comprehensive income (loss)	2		(19)		(3)		(9)		(1)		0		(30)
Purchases, issuances, sales and settlements:
Purchases	377		179		0		9		193		3		761
Issuances	0		0		0		0		0		0		0
Sales	0		0		0		0		0		(1)		(1)
Settlements	(93)		(33)		(4)		(9)		(4)		(84)		(227)
Transfers into Level 3	205		499		0		0		5		0		709
Transfers out of Level 3	(110)		(233)		0		(59)		(610)		0		(1,012)
Balance, end of period	$	1,156	$	647	$	23	$	10	$	231	$	157	$	2,224
Changes in unrealized gains (losses) relating to Level 3 assets and liabilities still held at the end of the period included in earnings	$	2	$	0	$	0	$	0	$	0	$	(10)	$	(8)

Fair Value Measurement Inputs and Valuation Techniques

The following tables summarize the significant unobservable inputs used in the valuation of the Company's Level 3 investments carried at fair value as of December 31. Included in the tables are the inputs or range of possible inputs that have an effect on the overall valuation of the financial instruments.

2025

(In millions)

Fair Value

Valuation Technique(s)

Unobservable Input

Range

Weighted Average

Assets:

Securities available-for-sale, carried at fair value:

Fixed maturity securities:

Mortgage- and asset-backed securities

2,294

Consensus pricing

Offered quotes

88.75

106.70

(a)

100.42

Public utilities

876

Discounted cash flow

Credit spreads

100 bps

391 bps

(c)

163 bps

Sovereign and supranational

Consensus pricing

Offered quotes

N/A

(b)

N/A

Banks/financial institutions

Adjusted cost

Private financials

N/A

(d)

N/A

Other corporate

159

Discounted cash flow

Credit spreads

75 bps

384 bps

(c)

217 bps

Equity securities

160

Adjusted cost

Private financials

N/A

(d)

N/A

Total assets

3,517

(a) Represents prices for securities where the Company receives unadjusted broker quotes and for which there is no transparency into the providers' valuation techniques

(b) Category represents a single security; range not applicable

(d) Prices do not utilize credit spreads; therefore, range is not applicable

2024

(In millions)

Fair Value

Valuation Technique(s)

Unobservable Input

Range

Weighted Average

Assets:

Securities available-for-sale, carried at fair value:

Fixed maturity securities:

Mortgage- and asset-backed securities

1,156

Consensus pricing

Offered quotes

84.08

104.60

(a)

99.07

Public utilities

647

Discounted cash flow

Credit spreads

100 bps

375 bps

(c)

162 bps

Sovereign and supranational

Consensus pricing

Offered quotes

N/A

(b)

N/A

Banks/financial institutions

Adjusted cost

Private financials

N/A

(d)

N/A

Other corporate

231

Discounted cash flow

Credit spreads

91 bps

294 bps

(c)

173 bps

Equity securities

157

Adjusted cost

Private financials

N/A

(d)

N/A

Total assets

2,224

(a) Represents prices for securities where the Company receives unadjusted broker quotes and for which there is no transparency into the providers' valuation techniques

(b) Category represents a single security; range not applicable

(d) Prices do not utilize credit spreads; therefore, range is not applicable

- 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