XML 36 R24.htm IDEA: XBRL DOCUMENT

Fair Values of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2026

Fair Value, Investments, Entities that Calculate Net Asset Value Per Share

The following tables present additional information about our private equity partnerships, including commitments for additional investments which may or may not be funded.


		September 30, 2026
Investment Category		Fair Value		Redemption Term / Redemption Notice	Unfunded Commitments
		(in millions of dollars)			(in millions of dollars)
Private Credit	(a)	$	179.2	Not redeemable	$	107.7
		40.5		Quarterly / 90 days notice	12.7
Total Private Credit		219.7			120.4

Private Equity	(b)	634.6		Not redeemable	441.0
		43.2		Initial 5.5 year lock on each new investment / Quarterly after 5.5 year lock with 90 days notice	11.6
Total Private Equity		677.8			452.6

Real Assets	(c)	510.1		Not redeemable	205.8
		40.5		Quarterly / 90 days notice	—
Total Real Assets		550.6			205.8

Total Partnerships		$	1,448.1		$	778.8


		December 31, 2025
Investment Category		Fair Value		Redemption Term / Redemption Notice	Unfunded Commitments
		(in millions of dollars)			(in millions of dollars)
Private Credit	(a)	$	205.9	Not redeemable	$	108.3

		49.9		Quarterly / 90 days notice	12.7
Total Private Credit		255.8			121.0

Private Equity	(b)	618.9		Not redeemable	406.8
		32.5		Initial 5.5 year lock on each new investment / Quarterly after 5.5 year lock with 90 days notice	15.5
Total Private Equity		651.4			422.3

Real Assets	(c)	511.4		Not redeemable	213.4
		37.7		Quarterly / 90 days notice	—
Total Real Assets		549.1			213.4

Total Partnerships		$	1,456.3		$	756.7

(a)Private Credit - The limited partnerships described in this category employ various investment strategies, generally providing direct lending or other forms of debt financing including first-lien, second-lien, mezzanine, and subordinated loans. The limited partnerships have credit exposure to corporates, physical assets, and/or financial assets within a variety of industries (including manufacturing, healthcare, energy, business services, technology, materials, and retail) in North America and, to a lesser extent, outside of North America. As of September 30, 2026, the estimated remaining life of the investments that do not allow for redemptions is approximately 71 percent in the next 3 years, 4 percent during the period from 3 to 5 years, and 25 percent during the period from 5 to 10 years.

(b)Private Equity - The limited partnerships described in this category employ various strategies generally investing in controlling or minority control equity positions directly in companies and/or assets across various industries (including manufacturing, healthcare, energy, business services, technology, materials, and retail), primarily in private markets within North America and, to a lesser extent, outside of North America. As of September 30, 2026, the estimated remaining life of the investments that do not allow for redemptions is approximately 37 percent in the next 3 years, 10 percent during the period from 3 to 5 years, 51 percent during the period from 5 to 10 years, and 2 percent during the period from 10 to 15 years.

(c)Real Assets - The limited partnerships described in this category employ various strategies, which include investing in the equity and/or debt financing of physical assets, including infrastructure (energy, power, water/wastewater, communications), transportation (including airports, ports, toll roads, aircraft, railcars) and real estate in North America, Europe, South America, and Asia. As of September 30, 2026, the estimated remaining life of the investments that do not allow for redemptions is approximately 37 percent in the next 3 years, 22 percent during the period from 3 to 5 years, and 41 percent during the period from 5 to 10 years.

Fair Values by Fair Value Hierarchy Input level

The following tables present information about financial instruments measured at fair value on a recurring basis by fair value level, based on the observability of the inputs used.


	September 30, 2026
	Level 1		Level 2		Level 3		NAV		Total
	(in millions of dollars)
Assets
Fixed Maturity Securities
United States Government and Government Agencies and Authorities	$	73.8	$	720.8	$	—	$	—	$	794.6
States, Municipalities, and Political Subdivisions	—		2,706.4		—		—		2,706.4
Foreign Governments	—		827.8		7.4		—		835.2
Public Utilities	570.9		4,265.1		—		—		4,836.0
Mortgage/Asset-Backed Securities1	—		1,537.0		109.6		—		1,646.6
All Other Corporate Bonds	7,402.9		14,670.2		94.9		—		22,168.0
Redeemable Preferred Stocks	—		7.7		—		—		7.7
Total Fixed Maturity Securities	8,047.6		24,735.0		211.9		—		32,994.5

Other Long-term Investments
Derivatives
Interest Rate Swaps	—		4.7		—		—		4.7
Foreign Currency Forwards	—		1.0		—		—		1.0
Foreign Currency Interest Rate Swaps	—		44.6		—		—		44.6
Embedded Derivative in Modified Coinsurance Arrangement	—		—		18.7		—		18.7

Total Derivatives	—		50.3		18.7		—		69.0
Perpetual Preferred and Equity Securities	—		6.8		24.0		—		30.8
Private Equity Partnerships	—		—		—		1,448.1		1,448.1
Total Other Long-term Investments	—		57.1		42.7		1,448.1		1,547.9
Total Financial Instrument Assets Carried at Fair Value	$	8,047.6	$	24,792.1	$	254.6	$	1,448.1	$	34,542.4

Liabilities
Other Liabilities
Derivatives
Foreign Currency Forwards	$	—	$	0.4	$	—	$	—	$	0.4
Forward Benchmark Interest Rate Locks	—		362.4		—		—		362.4
Foreign Currency Interest Rate Swaps	—		38.1		—		—		38.1

Total Return Swaps	—		20.6		—		—		20.6

Total Derivatives	—		421.5		—		—		421.5
Total Financial Instrument Liabilities Carried at Fair Value	$	—	$	421.5	$	—	$	—	$	421.5

1Includes credit-tranched securities collateralized by loan obligations, auto loans, and other asset types.


	December 31, 2025
	Level 1		Level 2		Level 3		NAV		Total
	(in millions of dollars)
Assets
Fixed Maturity Securities
United States Government and Government Agencies and Authorities	$	79.3	$	465.7	$	—	$	—	$	545.0
States, Municipalities, and Political Subdivisions	—		3,058.1		—		—		3,058.1
Foreign Governments	—		870.3		—		—		870.3
Public Utilities	223.7		4,710.2		—		—		4,933.9
Mortgage/Asset-Backed Securities1	—		1,076.2		103.1		—		1,179.3
All Other Corporate Bonds	3,656.0		18,742.2		63.9		—		22,462.1
Redeemable Preferred Stocks	—		7.9		—		—		7.9
Total Fixed Maturity Securities	3,959.0		28,930.6		167.0		—		33,056.6

Other Long-term Investments
Derivatives

Forwards	—		2.4		—		—		2.4
Foreign Currency Interest Rate Swaps	—		49.5		—		—		49.5
Embedded Derivative in Modified Coinsurance Arrangement	—		—		17.8		—		17.8
Total Derivatives	—		51.9		17.8		—		69.7
Perpetual Preferred and Equity Securities	—		0.2		19.8		—		20.0
Private Equity Partnerships	—		—		—		1,456.3		1,456.3
Total Other Long-term Investments	—		52.1		37.6		1,456.3		1,546.0
Total Financial Instrument Assets Carried at Fair Value	$	3,959.0	$	28,982.7	$	204.6	$	1,456.3	$	34,602.6

Liabilities
Other Liabilities
Derivatives
Forwards	$	—	$	223.9	$	—	$	—	$	223.9
Foreign Currency Interest Rate Swaps	—		45.8		—		—		45.8


Total Derivatives	—		269.7		—		—		269.7
Total Financial Instrument Liabilities Carried at Fair Value	$	—	$	269.7	$	—	$	—	$	269.7

1Includes credit-tranched securities collateralized by loan obligations, auto loans, and other asset types.

Changes in Assets and Liabilities Measured at Fair Value on a Recurring Basis using Significant Unobservable Inputs

Changes in assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) are as follows:


	Three Months Ended September 30, 2026
	Fair Value Beginning of Period		Total Realized and Unrealized Investment Gains (Losses) in				Purchases		Sales/ Maturities		Level 3 Transfers				Fair Value End of Period		Change in Unrealized Gain (Loss) on Securities Held at the End of Period included in
			Earnings		OCI						Into		Out of				OCI		Earnings
	(in millions of dollars)
Fixed Maturity Securities

Foreign Governments	$	7.9	$	—	$	(0.5)	$	—	$	—	$	—	$	—	$	7.4	$	(0.5)	$	—

Mortgage/Asset-Backed Securities1	103.5		—		(0.1)		20.2		(14.0)		—		—		109.6		(0.1)		—
All Other Corporate Bonds	74.9		—		3.1		—		(116.5)		154.8		(21.4)		94.9		(2.4)		—

Total Fixed Maturity Securities	$	186.3	$	—	$	2.5	$	20.2	$	(130.5)	$	154.8	$	(21.4)	$	211.9	$	(3.0)	$	—

Perpetual Preferred and Equity Securities	$	20.9	$	0.1	$	—	$	3.0	$	—	$	—	$	—	$	24.0	$	—	$	0.1
Embedded Derivative in Modified Coinsurance Arrangement	$	15.1	$	3.6	$	—	$	—	$	—	$	—	$	—	$	18.7	$	—	$	3.6

1Includes credit-tranched securities collateralized by loan obligations, auto loans, and other asset types


	Three Months Ended September 30, 2025
	Fair Value Beginning of Period		Total Realized and Unrealized Investment Gains (Losses) in				Purchases		Sales/ Maturities		Level 3 Transfers				Fair Value End of Period		Change in Unrealized Gain (Loss) on Securities Held at the End of Period included in
			Earnings		OCI						Into		Out of				OCI		Earnings
	(in millions of dollars)
Fixed Maturity Securities


Public Utilities	$	—	$	—	$	0.1	$	—	$	(22.5)	$	22.4	$	—	$	—	$	—	$	—
Mortgage/Asset-Backed Securities1	81.4		—		—		19.3		(1.7)		—		—		99.0		—		—
All Other Corporate Bonds	19.9		0.3		1.3		6.2		(66.1)		83.4		(1.0)		44.0		1.3		—

Total Fixed Maturity Securities	$	101.3	$	0.3	$	1.4	$	25.5	$	(90.3)	$	105.8	$	(1.0)	$	143.0	$	1.3	$	—

Perpetual Preferred and Equity Securities	$	23.8	$	(0.8)	$	—	$	—	$	—	$	—	$	—	$	23.0	$	—	$	0.1
Embedded Derivative in Modified Coinsurance Arrangement	$	10.6	$	3.3	$	—	$	—	$	—	$	—	$	—	$	13.9	$	—	$	3.3

1Includes credit-tranched securities collateralized by loan obligations, auto loans, and other asset types


	Nine Months Ended September 30, 2026
	Fair Value Beginning of Year		Total Realized and Unrealized Investment Gains (Losses) in				Purchases		Sales/ Maturities		Level 3 Transfers				Fair Value End of Period		Change in Unrealized Gain (Loss) on Securities Held at the End of Period included in
			Earnings		OCI						Into		Out of				OCI		Earnings
	(in millions of dollars)
Fixed Maturity Securities

Foreign Governments	$	—	$	—	$	(0.8)	$	—	$	—	$	8.2	$	—	$	7.4	$	(0.8)	$	—
Public Utilities	—		—		0.4		—		(41.0)		40.6		—		—		—		—
Mortgage/Asset-Backed Securities1	103.1		—		1.0		35.8		(30.3)		—		—		109.6		1.0		—
All Other Corporate Bonds	63.9		—		1.6		—		(305.5)		337.6		(2.7)		94.9		(4.4)		—

Total Fixed Maturity Securities	$	167.0	$	—	$	2.2	$	35.8	$	(376.8)	$	386.4	$	(2.7)	$	211.9	$	(4.2)	$	—

Perpetual Preferred and Equity Securities	$	19.8	$	0.1	$	—	$	4.1	$	—	$	—	$	—	$	24.0	$	—	$	0.1
Embedded Derivative in Modified Coinsurance Arrangement	$	17.8	$	0.9	$	—	$	—	$	—	$	—	$	—	$	18.7	$	—	$	0.9

1Includes credit-tranched securities collateralized by loan obligations, auto loans, and other asset types


	Nine Months Ended September 30, 2025
	Fair Value Beginning of Year		Total Realized and Unrealized Investment Gains (Losses) in				Purchases		Sales/ Maturities		Level 3 Transfers				Fair Value End of Period		Change in Unrealized Gain (Loss) on Securities Held at the End of Period included in
			Earnings		OCI						Into		Out of				OCI		Earnings
	(in millions of dollars)
Fixed Maturity Securities


Public Utilities	$	—	$	(1.5)	$	1.9	$	—	$	(43.7)	$	43.3	$	—	$	—	$	—	$	—
Mortgage/Asset-Backed Securities1	73.5		—		0.3		31.2		(5.9)		—		(0.1)		99.0		0.3		—
All Other Corporate Bonds	71.5		(5.9)		(0.7)		6.2		(172.3)		183.4		(38.2)		44.0		(0.7)		—

Total Fixed Maturity Securities	$	145.0	$	(7.4)	$	1.5	$	37.4	$	(221.9)	$	226.7	$	(38.3)	$	143.0	$	(0.4)	$	—

Perpetual Preferred and Equity Securities	$	24.4	$	6.8	$	—	$	4.7	$	(12.9)	$	—	$	—	$	23.0	$	—	$	0.8
Embedded Derivative in Modified Coinsurance Arrangement	$	11.5	$	2.4	$	—	$	—	$	—	$	—	$	—	$	13.9	$	—	$	2.4

1Includes credit-tranched securities collateralized by loan obligations, auto loans, and other asset types

Quantitative Information Regarding Significant Unobservable Inputs

The table below provides quantitative information regarding the significant unobservable inputs used in Level 3 fair value measurements derived from internal models. Unobservable inputs for fixed maturity securities are weighted by the fair value of the securities. Certain securities classified as Level 3 are excluded from the table below due to limitations in our ability to obtain the underlying inputs used by external pricing sources.

September 30, 2026

Fair Value

Valuation Method

Unobservable Input

Range/Weighted Average

(in millions of dollars)

Fixed Maturity Securities

All Other Corporate Bonds - Private

5.2

Market Approach

Market Convention

(a)

Priced at Par Value

Perpetual Preferred and Equity Securities

24.0

Market Approach

Market Convention

(a)

Priced at Cost, Owner's Equity, or Most Recent Round

Embedded Derivative in Modified Coinsurance Arrangement

18.7

Discounted Cash Flows

Projected Liability Cash Flows

Weighted Spread of Swap Curve

(b)

Actuarial Assumptions

(0.63)%

December 31, 2025

Fair Value

Valuation Method

Unobservable Input

Range/Weighted Average

(in millions of dollars)

Fixed Maturity Securities

All Other Corporate Bonds - Private

8.3

Market Approach

Market Convention

(a)

Priced at Par Value

Perpetual Preferred and Equity Securities

19.8

Market Approach

Market Convention

(a)

Priced at Cost, Owner's Equity, or Most Recent Round

Embedded Derivative in Modified Coinsurance Arrangement

17.8

Discounted Cash Flows

Projected Liability Cash Flows

Weighted Spread of Swap Curve

(b)

Actuarial Assumptions

(0.41)%

(a)Represents a decision to price based on par value, cost, owner's equity, or the price of the most recent capital funding round when limited data is available

(b)Represents various actuarial assumptions required to derive the liability cash flows. Fair value of embedded derivative is most often driven by the change in the weighted average credit spread to the swap curve for the assets backing the hypothetical loan

Carrying Amount and Fair Value of Financial Instruments

The following tables present the carrying amounts and estimated fair values of our financial instruments not measured at fair value and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used.


	September 30, 2026
	Estimated Fair Value
	Level 1		Level 2		Level 3		Total		Carrying Value
	(in millions of dollars)
Assets
Mortgage Loans	$	—	$	1,839.8	$	—	$	1,839.8	$	2,053.2
Policy Loans	—		—		3,581.5		3,581.5		3,538.1
Other Long-term Investments
Miscellaneous Long-term Investments	—		50.4		—		50.4		50.4
Total Financial Instrument Assets Not Carried at Fair Value	$	—	$	1,890.2	$	3,581.5	$	5,471.7	$	5,641.7

Liabilities
Policyholders' Account Balances
Funding Agreements	$	—	$	994.7	$	—	$	994.7	$	994.7
Long-term Debt	3,331.9		18.7		—		3,350.6		3,765.7


Other Liabilities	—		311.8		—		311.8		311.8


Total Financial Instrument Liabilities Not Carried at Fair Value	$	3,331.9	$	1,325.2	$	—	$	4,657.1	$	5,072.2


	December 31, 2025
	Estimated Fair Value
	Level 1		Level 2		Level 3		Total		Carrying Value
	(in millions of dollars)
Assets
Mortgage Loans	$	—	$	1,965.1	$	—	$	1,965.1	$	2,109.5
Policy Loans	—		—		3,739.5		3,739.5		3,668.1
Other Long-term Investments
Miscellaneous Long-term Investments	—		40.7		0.2		40.9		40.9

Total Financial Instrument Assets Not Carried at Fair Value	$	—	$	2,005.8	$	3,739.7	$	5,745.5	$	5,818.5

Liabilities
Long-term Debt	$	2,548.2	$	1,093.2	$	—	$	3,641.4	$	3,767.6
Other Liabilities	—		644.0		—		644.0		644.0


Total Financial Instrument Liabilities Not Carried at Fair Value	$	2,548.2	$	1,737.2	$	—	$	4,285.4	$	4,411.6

- 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