v3.25.2
FAIR VALUE MEASUREMENTS
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
Fair Value Hierarchy

U.S. GAAP specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. These two types of inputs create three valuation hierarchy levels, as follows:

•Level 1 valuations reflect quoted market prices for identical assets or liabilities in active markets.
•Level 2 valuations reflect quoted market prices for similar assets or liabilities in an active market, quoted market prices for identical or similar assets or liabilities in non-active markets or model-derived valuations in which all significant valuation inputs are observable in active markets.
•Level 3 valuations reflect valuations in which one or more of the significant inputs are not observable in an active market.

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.
  
June 30, 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$16,975 $778 $0 $17,753 
Municipalities0 2,074 0 2,074 
Mortgage- and asset-backed securities0 2,604 1,922 4,526 
Public utilities0 6,682 792 7,474 
Sovereign and supranational0 412 23 435 
Banks/financial institutions0 9,818 9 9,827 
Other corporate0 26,627 163 26,790 
Total fixed maturity securities16,975 48,995 2,909 68,879 
Equity securities715 0 167 882 
Other investments2,375 0 0 2,375 
Cash and cash equivalents6,965 0 0 6,965 
Other assets:
Foreign currency swaps0 45 0 45 
Foreign currency forwards0 29 0 29 
Foreign currency options0 2 0 2 
Interest rate swaps0 14 0 14 
Total other assets0 90 0 90 
Total assets$27,030 $49,085 $3,076 $79,191 
Liabilities:
Other liabilities:
Foreign currency swaps$0 $589 $0 $589 
Foreign currency forwards0 61 0 61 
Interest rate swaps0 275 0 275 
Total liabilities$0 $925 $0 $925 
  
December 31, 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 
Municipalities0 2,034 0 2,034 
Mortgage- and asset-backed securities0 2,407 1,156 3,563 
Public utilities0 6,398 647 7,045 
Sovereign and supranational0 393 23 416 
Banks/financial institutions0 8,946 10 8,956 
Other corporate0 25,178 231 25,409 
Total fixed maturity securities17,088 46,114 2,067 65,269 
Equity securities639 0 157 796 
Other investments1,599 0 0 1,599 
Cash and cash equivalents6,229 0 0 6,229 
Other assets:
Foreign currency swaps0 55 0 55 
Foreign currency forwards0 185 0 185 
Total other assets0 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 swaps0 329 0 329 
Total liabilities$0 $933 $0 $933 
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.
  
June 30, 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$16,718 $16,711 $149 $0 $16,860 
Municipalities255 0 265 0 265 
Public utilities35 0 34 0 34 
Sovereign and
   supranational		409 0 430 0 430 
Other corporate17 0 18 0 18 
Commercial mortgage and
    other loans		10,264 0 0 10,099 10,099 
Other investments (1)
40 0 40 0 40 
 Total assets$27,738 $16,711 $936 $10,099 $27,746 
Liabilities:
Other policyholders’ funds$6,002 $0 $0 $5,925 $5,925 
Notes payable
   (excluding leases)		8,837 0 7,678 737 8,415 
Total liabilities$14,839 $0 $7,678 $6,662 $14,340 
(1) Excludes policy loans of $221, equity method investments of $3,745, and REO of $964, at carrying value

  
December 31, 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 
Municipalities235 0 257 0 257 
Public utilities32 0 33 0 33 
Sovereign and
   supranational		374 0 405 0 405 
Other corporate16 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 of Financial Instruments

Fixed maturity and equity securities

The fair values of the Company's public fixed maturity securities are generally based on prices provided by third-party pricing vendors. The Company utilizes internally generated valuations or broker quotes for privately issued fixed maturity securities or fixed maturity securities where there is no price available from a third-party pricing vendor.

The fair values of the Company's public equity securities are generally based on price quotes, including quoted market prices readily available from independent public exchange markets or established security dealer associations. The Company determines the fair values of privately issued equity securities using the following approaches or techniques:
•price quotes and valuations from third-party pricing vendors,
•in-house valuations, and
•non-binding price quotes the Company obtains from outside brokers.

The pricing data and market quotes the Company obtains from outside sources, including third-party pricing services, are reviewed internally for reasonableness. If a fair value appears unreasonable, the Company will re-examine the inputs and assess the reasonableness of the pricing data with the provider. Additionally, the Company may compare the inputs to relevant market indices and other performance measurements. Based on management's analysis, the valuation is confirmed or may be revised if there is evidence of a more appropriate estimate of fair value based on available market data. The Company has performed verification of the inputs and calculations in any valuation models, including independent validations and back testing, to confirm that the valuations represent reasonable estimates of fair value. For the periods presented, the Company has not adjusted the quotes or prices it obtains from the pricing services and brokers it uses.

For internally generated valuations, the Company utilizes valuation models developed by a third-party pricing vendor. The models and associated processes and controls are executed by Company personnel.
These models are discounted cash flow (DCF) valuation models but also use information from related markets, specifically public bond markets and the credit default swap (CDS) market, to estimate expected cash flows. The models take into consideration any unique characteristics of the securities and make various adjustments to arrive at an appropriate issuer-specific loss adjusted credit curve using the most appropriate comparable security(ies) of the issuer and issuer-specific CDS spreads. This credit curve is then used with the relevant recovery rates to estimate expected cash flows and modeling of additional features, including illiquidity adjustments, if necessary, to price the security by discounting those loss adjusted cash flows. In cases where a credit curve cannot be developed from market information for the specific issuer, the valuation methodology takes into consideration other market observable inputs, including:
•the most appropriate comparable security(ies) of a guarantor and/or parent
•CDS spreads of a guarantor and/or parent
•bonds of comparable issuers with similar characteristics such as rating, geography, or sector
•CDS spreads of an appropriate index or of comparable issuers with similar characteristics such as rating, geography, or sector
•bond indices that are comparative in rating, industry, maturity, and region.
The following tables present the pricing sources for the fair values of the Company's fixed maturity and equity securities.
June 30, 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$16,975 $446 $0 $17,421 
Internal0 332 0 332 
               Total government and agencies16,975 778 0 17,753 
         Municipalities:
Third-party pricing vendor0 1,827 0 1,827 
Internal0 247 0 247 
               Total municipalities0 2,074 0 2,074 
         Mortgage- and asset-backed securities:
Third-party pricing vendor0 2,422 0 2,422 
Internal 0 182 38 220 
Broker/other0 0 1,884 1,884 
               Total mortgage- and asset-backed securities0 2,604 1,922 4,526 
         Public utilities:
Third-party pricing vendor0 3,734 0 3,734 
Internal 0 2,948 0 2,948 
Broker/other0 0 792 792 
               Total public utilities0 6,682 792 7,474 
         Sovereign and supranational:
Third-party pricing vendor0 78 0 78 
Internal0 334 0 334 
Broker/other 0 0 23 23 
               Total sovereign and supranational0 412 23 435 
         Banks/financial institutions:
Third-party pricing vendor0 5,636 0 5,636 
Internal0 4,182 5 4,187 
Broker/other0 0 4 4 
               Total banks/financial institutions0 9,818 9 9,827 
         Other corporate:
Third-party pricing vendor0 21,310 0 21,310 
Internal0 5,317 21 5,338 
Broker/other0 0 142 142 
               Total other corporate0 26,627 163 26,790 
                  Total securities available-for-sale$16,975 $48,995 $2,909 $68,879 
Equity securities, carried at fair value:
Third-party pricing vendor$715 $0 $0 $715 
Internal0 0 1 1 
Broker/other0 0 166 166 
               Total equity securities$715 $0 $167 $882 
June 30, 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$16,711 $149 $0 $16,860 
               Total government and agencies16,711 149 0 16,860 
         Municipalities:
Third-party pricing vendor0 265 0 265 
               Total municipalities0 265 0 265 
         Public utilities:
Third-party pricing vendor0 34 0 34 
               Total public utilities0 34 0 34 
         Sovereign and supranational:
Third-party pricing vendor0 212 0 212 
Internal0 218 0 218 
               Total sovereign and supranational0 430 0 430 
         Other corporate:
Third-party pricing vendor0 18 0 18 
               Total other corporate0 18 0 18 
                  Total securities held-to-maturity$16,711 $896 $0 $17,607 
December 31, 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 
Internal0 312 0 312 
               Total government and agencies17,088 758 0 17,846 
         Municipalities:
Third-party pricing vendor0 1,791 0 1,791 
Internal0 243 0 243 
               Total municipalities0 2,034 0 2,034 
         Mortgage- and asset-backed securities:
Third-party pricing vendor0 2,352 0 2,352 
Internal0 55 37 92 
Broker/other0 0 1,119 1,119 
               Total mortgage- and asset-backed securities0 2,407 1,156 3,563 
         Public utilities:
Third-party pricing vendor0 3,628 0 3,628 
Internal0 2,770 0 2,770 
Broker/other0 0 647 647 
               Total public utilities0 6,398 647 7,045 
         Sovereign and supranational:
Third-party pricing vendor0 78 0 78 
Internal0 315 0 315 
Broker/other0 0 23 23 
               Total sovereign and supranational0 393 23 416 
         Banks/financial institutions:
Third-party pricing vendor0 4,975 0 4,975 
Internal0 3,971 5 3,976 
Broker/other0 0 5 5 
               Total banks/financial institutions0 8,946 10 8,956 
         Other corporate:
Third-party pricing vendor0 20,051 0 20,051 
Internal0 5,127 116 5,243 
Broker/other0 0 115 115 
               Total other corporate0 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 
Internal0 0 26 26 
Broker/other0 0 131 131 
               Total equity securities$639 $0 $157 $796 
December 31, 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 agencies15,916 143 0 16,059 
         Municipalities:
Third-party pricing vendor0 257 0 257 
               Total municipalities0 257 0 257 
         Public utilities:
Third-party pricing vendor0 33 0 33 
               Total public utilities0 33 0 33 
         Sovereign and supranational:
Third-party pricing vendor0 198 0 198 
Internal0 207 0 207 
               Total sovereign and supranational0 405 0 405 
         Other corporate:
Third-party pricing vendor0 18 0 18 
               Total other corporate0 18 0 18 
                  Total securities held-to-maturity$15,916 $856 $0 $16,772 

The following is a discussion of the determination of fair value of the Company's remaining financial instruments.

Derivatives

The Company uses derivative instruments to manage the risk associated with certain assets. However, the derivative instrument may not be classified in the same fair value hierarchy level as the associated asset. The significant inputs to pricing derivatives are generally observable in the market or can be derived by observable market data. When these inputs are observable, the derivatives are classified as Level 2.

The Company uses present value techniques to value non-option based derivatives. It also uses option pricing models to value option based derivatives. Key inputs are as follows:

Instrument TypeLevel 2
Interest rate derivatives
Swap yield curves
Basis curves
Interest rate volatility (1)
Foreign currency exchange rate derivatives - Non-VIEs (forwards, swaps and options)
Foreign currency forward rates
Swap yield curves
Basis curves
Foreign currency spot rates
Foreign cross-currency basis curves
Foreign currency volatility (1)
Foreign currency exchange rate derivatives - VIEs (swaps)
Foreign currency spot rates
Swap yield curves
Credit default swap curves
Basis curves
Recovery rates
Foreign currency forward rates
Foreign cross-currency basis curves
(1) Option-based only
The fair values of the foreign currency forwards and options are based on observable market inputs, therefore they are classified as Level 2.
The Parent Company had cross-currency swap agreements related to certain of its U.S. dollar-denominated senior notes to effectively convert a portion of the interest on the notes from U.S. dollar to Japanese yen. These swaps matured in March 2025. Their fair values were based on observable market inputs; therefore, they were classified as Level 2.

To determine the fair value of its interest rate derivatives, the Company uses inputs that are generally observable in the market or can be derived from observable market data. Interest rate swaps are cleared trades. In a cleared swap contract, the clearinghouse provides benefits to the counterparties similar to contracts listed for investment traded on an exchange since it maintains a daily margin to mitigate counterparties' credit risk. These derivatives are priced using observable inputs, accordingly, they are classified as Level 2.

For derivatives associated with VIEs where the Company is the primary beneficiary, the Company is not the direct counterparty to the swap contracts. Nevertheless, the Company has full transparency into the contracts to properly value the swaps for reporting purposes. For these derivatives, the Company utilizes valuation models developed by independent valuation analytics providers. The models are market standard DCF models and all associated processes and controls are executed by Company personnel. These models take into consideration any unique characteristics of the derivatives in determining the appropriate valuation methodology to estimate expected cash flows. The fair values of these swaps are based on observable market inputs and are classified as Level 2 within the fair value hierarchy.

For forward bond purchase commitments with VIEs, the fair value of the derivative is based on the difference in the fixed purchase price and the current market value of the related bond prior to the settlement date. Since the bond is typically a public bond with readily available pricing, the derivatives associated with the forward purchase commitment are classified as Level 2 within the fair value hierarchy.

Commercial mortgage and other loans

Commercial mortgage and other loans include TREs, CMLs, MMLs and other loans. The Company's loan receivables do not have readily determinable market prices and generally lack market liquidity. Fair values for loan receivables are determined based on the present value of expected future cash flows discounted at the applicable U.S. Treasury or floating-rate benchmark yield plus an appropriate spread that considers other risk factors, such as credit and liquidity risk. The spreads are a significant component of the pricing inputs and are generally considered unobservable. Therefore, these investments are classified as Level 3 within the fair value hierarchy.

Other investments

Other investments includes short-term investments that are measured at fair value where amortized cost approximates fair value.

Other policyholders' funds

The largest component of the other policyholders' funds liability is the Company's annuity line of business in Aflac Japan. The Company's annuities have fixed benefits and premiums. For this product, the Company estimates the fair value to be equal to the cash surrender value. This is analogous to the value paid to policyholders on the valuation date if they were to surrender their policy. The Company periodically checks the cash value against discounted cash flow projections for reasonableness. The Company considers its inputs for this valuation to be unobservable and have accordingly classified this valuation as Level 3.

Notes payable

The fair values of the Company's publicly issued notes payable are determined by utilizing available sources of observable inputs from third-party pricing vendors and are classified as Level 2. The Company's private placement notes payable are valued using the same internal models that the Company uses for its yen-denominated and U.S. dollar-denominated private placement investment portfolio. The fair values for these private placements are deemed Level 2 valuations, as they are model-derived valuations that are generated internally with all significant valuation inputs being observed in active markets. The fair values of the Company's yen-denominated loans approximate their carrying values and are classified as Level 3.
Transfers between Hierarchy Levels and Level 3 Rollforward
Assets and liabilities are transferred into Level 3 when a significant input cannot be corroborated with market observable data. This occurs when market activity decreases significantly and underlying inputs cannot be observed, current prices are not available, and/or when there are significant variances in quoted prices, thereby affecting transparency. Assets and liabilities are transferred out of Level 3 when circumstances change such that a significant input can be corroborated with market observable data. This may be due to a significant increase in market activity, a specific event, or one or more significant input(s) becoming observable.

The following tables present the changes in fair value of the Company's investments carried at fair value classified as Level 3.
Three Months Ended
June 30, 2025
  Fixed Maturity SecuritiesEquity
Securities		  
(In millions)Mortgage-
and
Asset-
Backed
Securities		Public
Utilities		Sovereign
and
Supranational		Banks/
Financial
Institutions		Other
Corporate		 Total
Balance, beginning of period$1,603 $756 $24 $10 $137 $160 $2,690 
Net investment gains (losses) included
  in earnings		0 0 0 0 0 3 3 
Unrealized gains (losses) included in
  other comprehensive income (loss)		20 14 1 (1)2 0 36 
Purchases, issuances, sales
  and settlements:
Purchases175 48 0 0 24 4 251 
Issuances0 0 0 0 0 0 0 
Sales0 0 0 0 0 0 0 
Settlements(44)(26)(2)0 0 0 (72)
Transfers into Level 3168 0 0 0 0 0 168 
Transfers out of Level 30 0 0 0 0 0 0 
Balance, end of period$1,922 $792 $23 $9 $163 $167 $3,076 
Changes in unrealized gains (losses)
  relating to Level 3 assets and liabilities
  still held at the end of the period
  included in earnings		$0 $0 $0 $0 $0 $3 $3 
Three Months Ended
June 30, 2024
  Fixed Maturity SecuritiesEquity
Securities		  
(In millions)Mortgage-
and
Asset-
Backed
Securities		Public
Utilities		Sovereign
and
Supranational		Banks/
Financial
Institutions		Other
Corporate		 Total
Balance, beginning of period$859 $507 $28 $74 $450 $159 $2,077 
Net investment gains (losses) included
  in earnings		1 0 0 0 0 (2)(1)
Unrealized gains (losses) included in
  other comprehensive income (loss)		(5)(1)(1)(5)(5)0 (17)
Purchases, issuances, sales
  and settlements:
Purchases189 39 0 0 58 0 286 
Issuances0 0 0 0 0 0 0 
Sales0 0 0 0 0 0 0 
Settlements(21)(3)(2)0 0 0 (26)
Transfers into Level 3190 56 0 0 0 0 246 
Transfers out of Level 30 (233)0 0 (119)0 (352)
Balance, end of period$1,213 $365 $25 $69 $384 $157 $2,213 
Changes in unrealized gains (losses)
  relating to Level 3 assets and liabilities
  still held at the end of the period
  included in earnings		$1 $0 $0 $0 $0 $(3)$(2)
Six Months Ended
June 30, 2025
 Fixed Maturity SecuritiesEquity
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		0 0 0 0 0 4 4 
Unrealized gains (losses) included in
  other comprehensive income (loss)		30 20 2 (1)4 0 55 
Purchases, issuances, sales
  and settlements:
Purchases609 158 0 0 24 7 798 
Issuances0 0 0 0 0 0 0 
Sales0 0 0 0 0 (1)(1)
Settlements(56)(33)(2)0 (1)0 (92)
Transfers into Level 3183 0 0 0 0 0 183 
Transfers out of Level 30 0 0 0 (95)0 (95)
Balance, end of period$1,922 $792 $23 $9 $163 $167 $3,076 
Changes in unrealized gains
  (losses) relating to Level 3 assets
  and liabilities still held at the end
  of the period included in earnings 		$0 $0 $0 $0 $0 $4 $4 
Six Months Ended
June 30, 2024
 Fixed Maturity SecuritiesEquity
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		2 0 0 0 0 (7)(5)
Unrealized gains (losses) included in
  other comprehensive income (loss)		(9)(11)(3)(9)(4)0 (36)
Purchases, issuances, sales and
  settlements:
Purchases307 99 0 5 95 0 506 
Issuances0 0 0 0 0 0 0 
Sales0 0 0 0 0 0 0 
Settlements(49)(25)(2)(5)(3)(84)(168)
Transfers into Level 3190 282 0 0 0 0 472 
Transfers out of Level 30 (233)0 0 (352)0 (585)
Balance, end of period$1,213 $365 $25 $69 $384 $157 $2,213 
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 $(6)$(4)
Fair Value Sensitivity

Level 3 Significant Unobservable Input Sensitivity

The following tables summarize the significant unobservable inputs used in the valuation of the Company's Level 3 investments carried at fair value. Included in the tables are the inputs or range of possible inputs that have an effect on the overall valuation of the financial instruments.
June 30, 2025
(In millions)Fair ValueValuation Technique(s)Unobservable InputRange Weighted Average
Assets:
  Securities available-for-sale, carried at fair value:
    Fixed maturity securities:
       Mortgage- and asset-backed securities$1,922 Consensus pricingOffered quotes87.62-107.25
(a)
100.12
       Public utilities792 Discounted cash flowCredit spreads100 bps-347 bps
(c)
160 bps
       Sovereign and supranational23 Consensus pricingOffered quotesN/A
(b)
N/A
       Banks/financial institutions9 Adjusted costPrivate financialsN/A
(d)
N/A
       Other corporate163 Discounted cash flowCredit spreads100 bps-392 bps
(c)
228 bps
  Equity securities167 Adjusted costPrivate financialsN/A
(d)
N/A
            Total assets$3,076 
(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
(c) Actual or equivalent credit spreads in basis points
(d) Prices do not utilize credit spreads; therefore, range is not applicable

December 31, 2024
(In millions)Fair ValueValuation Technique(s)Unobservable InputRange Weighted Average
Assets:
  Securities available-for-sale, carried at fair value:
    Fixed maturity securities:
       Mortgage- and asset-backed securities$1,156 Consensus pricingOffered quotes84.08-104.60
(a)
99.07
       Public utilities647 Discounted cash flowCredit spreads100 bps-375 bps
(c)
162 bps
       Sovereign and supranational23 Consensus pricingOffered quotesN/A
(b)
N/A
       Banks/financial institutions10 Adjusted costPrivate financialsN/A
(d)
N/A
       Other corporate231 Discounted cash flowCredit spreads91 bps-294 bps
(c)
173 bps
  Equity securities157 Adjusted costPrivate financialsN/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
(c) Actual or equivalent credit spreads in basis points
(d) Prices do not utilize credit spreads; therefore, range is not applicable
The following is a discussion of the significant unobservable inputs or valuation techniques used in determining the fair value of securities classified as Level 3.

Credit Spreads

The Company holds certain assets that are of a unique, specialized, and/or securitized nature that do not trade on a regular basis in an active market, which makes their fair values difficult to estimate. Most of these assets are managed by external asset managers and the Company utilizes these managers for their expertise when evaluating various inputs used to determine the fair values for these assets, including identifying the appropriate credit or risk spread over risk-free interest rates that incorporates the unique nature or structure of the asset in the valuations. For those assets of a similar nature but not managed by external asset managers, the Company internally estimates the spreads and risk adjustments over risk-free interest rates that reflect the unique nature or structure of the asset as well as the current pricing environment and market conditions for comparable or related investments. Credit or risk spreads are an important input needed to complete the discounted cash flow analyses used to estimate an investment’s fair value. Credit or risk spreads underlying these fair values are a significant, unobservable input whose derivation is based on the Company’s evaluation of a combination of the external manager’s expertise and knowledge, the current pricing environment, and market conditions for the specific asset.

Offered Quotes

In circumstances where the Company's valuation model price is overridden because it implies a value that is not consistent with current market conditions, the Company will solicit bids from a limited number of brokers. The Company also receives unadjusted prices from brokers for certain of its mortgage and asset-backed securities. These quotes are non-binding but are reflective of valuation best estimates at that particular point in time. Offered quotes are an unobservable input in the determination of fair value of mortgage- and asset-backed securities, certain banks/financial institutions, certain other corporate, and equity securities investments.

Private Financials

The Company invests in the debt and equity securities of private companies operating in the cancer, healthtech, insurtech, finance, internet of things, big data and analytics sectors. Due to their private and often small, startup nature, these companies rely on capital provided by institutional and private equity investors for their ongoing operations. They do not have public securities that trade on a regular basis in an active market, which makes their fair values difficult to estimate. The Company values these investments on a cost basis with appropriate adjustments made based on monitoring private financial information provided by these companies. Adjustments to valuations are generally made as new funding tranches are executed or if the financial information provided significantly changes indicating the need for impairment. This private financial information is unobservable and is a significant determinant in the fair value of these corporate venture investments.

For additional information on the Company's investments and financial instruments, see the accompanying Notes 3 and 4 and Notes 1, 3 and 4 of the Notes to the Consolidated Financial Statements in the 2024 Annual Report.