Fair Value (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

Financial assets measured at fair value on a recurring basis on the consolidated balance sheets at December 31, 2025 and 2024 were as follows:


In millions	Level 1		Level 2		Level 3		Total
December 31, 2025
Cash and cash equivalents	$	4,030	$	4,423	$	—	$	8,453
Debt securities:
U.S. government securities	2,713		9		—		2,722
States, municipalities and political subdivisions	—		292		—		292
U.S. corporate securities	—		14,682		6		14,688
Foreign securities	—		3,028		—		3,028
Residential mortgage-backed securities	—		1,050		—		1,050
Commercial mortgage-backed securities	—		1,979		—		1,979
Other asset-backed securities	—		4,944		—		4,944
Redeemable preferred securities	—		15		—		15
Total debt securities	2,713		25,999		6		28,718
Equity securities	105		30		198		333
Total	$	6,848	$	30,452	$	204	$	37,504

December 31, 2024
Cash and cash equivalents	$	4,948	$	3,638	$	—	$	8,586
Debt securities:
U.S. government securities	2,777		18		—		2,795
States, municipalities and political subdivisions	—		698		—		698
U.S. corporate securities	—		12,687		38		12,725
Foreign securities	—		2,524		—		2,524
Residential mortgage-backed securities	—		740		—		740
Commercial mortgage-backed securities	—		1,673		—		1,673
Other asset-backed securities	—		4,862		—		4,862
Redeemable preferred securities	—		16		—		16
Total debt securities	2,777		23,218		38		26,033
Equity securities	234		—		126		360
Total	$	7,959	$	26,856	$	164	$	34,979

Schedule of Changes in Level 3 Financial Assets

The changes in the balances of Level 3 financial assets during the year ended December 31, 2025 were as follows:


In millions	Commercial mortgage- backed securities		U.S. corporate securities		Equity securities		Redeemable preferred securities		Total
Beginning balance	$	—	$	38	$	126	$	—	$	164
Net realized and unrealized capital gains (losses):
Included in net income	—		7		26		—		33
Included in other comprehensive income	—		(2)		—		—		(2)
Purchases	19		40		52		23		134
Sales	—		(33)		(6)		—		(39)

Transfers out of Level 3, net	(19)		(44)		—		(23)		(86)
Ending balance	$	—	$	6	$	198	$	—	$	204

The changes in the balances of Level 3 financial assets during the year ended December 31, 2024 were as follows:


In millions	Commercial mortgage- backed securities		U.S. corporate securities		Other asset- backed securities		Equity securities		Total
Beginning balance	$	—	$	29	$	—	$	79	$	108
Net realized and unrealized capital gains (losses):
Included in net income	—		(5)		—		28		23
Included in other comprehensive income	—		(1)		—		—		(1)
Purchases	52		15		15		19		101
Sales	—		—		—		—		—

Transfers out of Level 3, net	(52)		—		(15)		—		(67)
Ending balance	$	—	$	38	$	—	$	126	$	164

The total gross transfers into (out of) Level 3 during the years ended December 31, 2025 and 2024 were as follows:


In millions	2025		2024
Gross transfers into Level 3	$	—	$	—
Gross transfers out of Level 3	(86)		(67)
Net transfers out of Level 3	$	(86)	$	(67)

Schedule of Carrying Value and Fair Value By Level of Fair Value Hierarchy

The carrying value and estimated fair value classified by level of fair value hierarchy for financial instruments carried on the consolidated balance sheets at adjusted cost or contract value at December 31, 2025 and 2024 were as follows:


	Carrying Value		Estimated Fair Value
In millions			Level 1		Level 2		Level 3		Total
December 31, 2025
Assets:
Mortgage loans	$	1,524	$	—	$	—	$	1,524	$	1,524
Equity securities (1)	555		N/A		N/A		N/A		N/A
Liabilities:
Investment contract liabilities:
With a fixed maturity	1		—		—		1		1
Without a fixed maturity	270		—		—		251		251
Long-term debt	64,570		62,321		—		—		62,321

December 31, 2024
Assets:
Mortgage loans	$	1,505	$	—	$	—	$	1,468	$	1,468
Equity securities (1)	490		N/A		N/A		N/A		N/A
Liabilities:
Investment contract liabilities:
With a fixed maturity	1		—		—		1		1
Without a fixed maturity	312		—		—		272		272
Long-term debt	64,151		58,724		—		—		58,724

______________________________________

(1)It was not practical to estimate the fair value of these investments as it represents shares of unlisted companies. See Note 1 ‘‘Significant Accounting Policies’’ for additional information regarding the valuation of investments accounted for under the measurement alternative method.

Schedule of Fair Value of Separate Accounts by Major Category of Investment

Separate Accounts financial assets at December 31, 2025 and 2024 were as follows:


	December 31, 2025								December 31, 2024
In millions	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	1	$	155	$	—	$	156	$	1	$	164	$	—	$	165
Debt securities	30		361		2		393		186		669		1		856

Common/collective trusts	—		1,445		—		1,445		—		2,478		—		2,478
Total (1)	$	31	$	1,961	$	2	$	1,994	$	187	$	3,311	$	1	$	3,499

_____________________________________

(1)Excludes $188 million of other payables at December 31, 2024.

The following table shows the fair value of assets, by major investment category, supporting Separate Accounts as of December 31, 2025 and 2024:


In millions	2025		2024

Cash and cash equivalents	$	156	$	165
Debt securities:
U.S. government securities	36		186
States, municipalities and political subdivisions	11		14
U.S. corporate securities	291		524


Foreign securities	39		51
Residential mortgage-backed securities	8		71
Commercial mortgage-backed securities	3		3
Other asset-backed securities	5		7
Total debt securities	393		856

Common/collective trusts	1,445		2,478

Total (1)	$	1,994	$	3,499

_____________________________________________

(1)Excludes $188 million of other payables at December 31, 2024.

- 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