v3.25.1
Fair Value
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Fair Value
Assets and liabilities measured at fair value on a recurring basis are summarized in the following tables. Corporate bonds and other includes obligations of the United States of America (“U.S.”) Treasury, government-sponsored enterprises, foreign governments and redeemable preferred stock.

March 31, 2025
Level 1
Level 2
Level 3
Total
(In millions)    
     
Fixed maturity securities:    
Corporate bonds and other$222 $25,041 $1,351 $26,614 
States, municipalities and political subdivisions6,600 44 6,644 
Asset-backed7,774 889 8,663 
Fixed maturities available-for-sale222 39,415 2,284 41,921 
Fixed maturities trading800 2 802 
Total fixed maturities$1,022 $39,417 $2,284 $42,723 
 
Equity securities$694 $478 $17 $1,189 
Short-term and other4,150 43 4,193 
Receivables3 3 
Payable to brokers(61)(61)
December 31, 2024
Fixed maturity securities:
Corporate bonds and other$223 $24,340 $1,278 $25,841 
States, municipalities and political subdivisions6,762 42 6,804 
Asset-backed7,540 876 8,416 
Fixed maturities available-for-sale223 38,642 2,196 41,061 
Fixed maturities trading766 766 
Total fixed maturities$989 $38,642 $2,196 $41,827 
Equity securities$603 $441 $20 $1,064 
Short-term and other4,383 70 4,453 
Receivables5 5 
Payable to brokers(88)(88)
The following tables present reconciliations for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2025 and 2024:

Net Realized Investment Gains (Losses) and Net Change in Unrealized Investment Gains (Losses)
Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at March 31
Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at March 31
2025Balance, January 1
Included in Net Income
Included in OCIPurchases
Sales
Settlements
Transfers into
Level 3
Transfers out of Level 3
Balance, March 31
(In millions)           
            
Fixed maturity securities:           
Corporate bonds and other$1,278 $21 $55 $(18)$15 $1,351 $21 
States, municipalities and political subdivisions42 2 44 2 
Asset-backed876 $4 1 27 (19)889 1 
Fixed maturities available-for-sale$2,196 $4 $24 $82 $— $(37)$15 $— $2,284 $— $24 
 
Equity securities$20 $1 $(4)$17 $(1)

2024
          
Fixed maturity securities:          
Corporate bonds and other$1,045 $(12)$74 $(36)$11 $1,082 $(14)
States, municipalities and political subdivisions44 (1)43 (1)
Asset-backed901 $2 (5)18 $(9)(17)$(19)871 (5)
Fixed maturities available-for-sale$1,990 $2 $(18)$92 $(9)$(53)$11 $(19)$1,996 $— $(20)
 
Equity securities$24 $6 $(19)$11 $1 
Net investment gains and losses are reported in Net income as follows:

Major Category of Assets and LiabilitiesConsolidated Condensed Statements of Operations Line Items
  
Fixed maturity securities available-for-saleInvestment gains (losses)
Fixed maturity securities tradingNet investment income
Equity securitiesInvestment gains (losses) and Net investment income
Other invested assetsInvestment gains (losses) and Net investment income
Derivative financial instruments held in a trading portfolioNet investment income
Derivative financial instruments, otherInvestment gains (losses) and Operating revenues and other

Significant Unobservable Inputs

The following tables present quantitative information about the significant unobservable inputs utilized in the fair value measurement of Level 3 assets. Valuations for assets and liabilities not presented in the tables below are primarily based on broker/dealer quotes for which there is a lack of transparency as to inputs used to develop the valuations. The quantitative detail of unobservable inputs from these broker quotes is neither provided nor reasonably available. The weighted average rate is calculated based on fair value.

March 31, 2025Estimated
Fair Value		Valuation TechniquesUnobservable InputsRange (Weighted Average)
 (In millions)  
    
Fixed maturity securities$1,805 Discounted cash flowCredit spread1 %—7 %(2 %)
   
December 31, 2024  
   
Fixed maturity securities$1,724 Discounted cash flowCredit spread1 %—6 %(2 %)

For fixed maturity securities, an increase to the credit spread assumptions would result in a lower fair value measurement.

Financial Assets and Liabilities Not Measured at Fair Value

The carrying amount, estimated fair value and the level of the fair value hierarchy of the financial assets and liabilities which are not measured at fair value on the Consolidated Condensed Balance Sheets are presented in the following tables. The carrying amounts and estimated fair values of short-term debt and long-term debt exclude finance lease obligations. The carrying amounts reported on the Consolidated Condensed Balance Sheets for cash and short-term investments not carried at fair value and certain other assets and liabilities approximate fair value due to the short term nature of these items.
Carrying AmountEstimated Fair Value
March 31, 2025Level 1Level 2Level 3Total
(In millions)     
      
Assets:     
Other invested assets, primarily mortgage loans$1,049 $1,035 $1,035 
 
Liabilities:
Short-term debt504 $499 5 504 
Long-term debt8,438 7,275 966 8,241 
 
December 31, 2024
 
Assets:
Other invested assets, primarily mortgage loans$1,019 $987 $987 
 
Liabilities:
Short-term debt4 5 5 
Long-term debt8,936 $7,702 966 8,668