FAIR VALUE (Tables)

6 Months Ended

Jun. 30, 2025

Schedule of Fair Value Measurement Levels for all Assets, Recorded at Fair Value

The following tables present the fair value measurement levels for all assets, which the Company has recorded at fair value as of the periods indicated:


			Fair Value Measurement Using
(Dollars in millions)	June 30, 2025		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Fixed maturities - available for sale
U.S. Treasury securities and obligations of U.S. government
agencies and corporations	$	249	$	—	$	249	$	—
Obligations of U.S. States and political subdivisions	50		—		50		—
Corporate securities	5,896		—		5,460		436
Asset-backed securities	4,749		—		2,887		1,862
Mortgage-backed securities
Agency commercial	210		—		210		—
Non-agency commercial	447		—		447		—
Agency residential	3,708		—		3,708		—
Non-agency residential	1,374		—		1,374		—
Foreign government securities	992		—		992		—
Foreign corporate securities	2,121		—		2,107		14
Total fixed maturities - available for sale	19,796		—		17,484		2,312

Equity securities, fair value	112		83		25		5
Other invested assets, fair value	1,618		—		—		1,618

(Some amounts may not reconcile due to rounding.)


	Fair Value Measurement Using
(Dollars in millions)	December 31, 2024		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Fixed maturities - available for sale
U.S. Treasury securities and obligations of U.S. government
agencies and corporations	$	255	$	—	$	255	$	—
Obligations of U.S. States and political subdivisions	70		—		70		—
Corporate securities	3,997		—		3,479		518
Asset-backed securities	5,311		—		3,654		1,657
Mortgage-backed securities
Commercial	441		—		441		—
Agency residential	3,151		—		3,151		—
Non-agency residential	1,161		—		1,161		—
Foreign government securities	970		—		970		—
Foreign corporate securities	1,831		—		1,817		14
Total fixed maturities - available for sale	17,186		—		14,997		2,189

Equity securities, fair value	110		79		26		5
Other invested assets, fair value	1,523		—		—		1,523

(Some amounts may not reconcile due to rounding.)

Schedule of Activity Under Level 3, Fair Value Measurements Using Significant Unobservable Inputs for Fixed Maturities - Available for Sale

The following tables present the activity under Level 3, fair value measurements using significant unobservable inputs for fixed maturities - available for sale, for the periods indicated:


	Total Fixed Maturities - Available for Sale
	Three Months Ended June 30, 2025						Six Months Ended June 30, 2025
(Dollars in millions)	Corporate Securities		Asset Backed Securities		Foreign Corporate		Total		Corporate Securities		Asset Backed Securities		Foreign Corporate		Total
Beginning balance of fixed maturities	$	468	$	1,752	$	14	$	2,234	$	518	$	1,657	$	14	$	2,189
Total gains or (losses) (realized/unrealized)
Included in earnings (or changes in net assets)	(1)		—		—		(1)		(1)		—		—		(1)
Included in other comprehensive income (loss)	(8)		(3)		—		(12)		(15)		(2)		—		(17)
Purchases, issuances and settlements	(22)		114		—		91		(67)		207		—		140
Transfers in/(out) of Level 3 and reclassification of securities in/(out) of investment categories	—		—		—		—		—		—		—		—
Ending balance	$	436	$	1,862	$	14	$	2,312	$	436	$	1,862	$	14	$	2,312

The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date	$	(2)	$	—	$	—	$	(2)	$	(2)	$	—	$	—	$	(2)

(Some amounts may not reconcile due to rounding.)


	Total Fixed Maturities - Available for Sale
	Three Months Ended June 30, 2024						Six Months Ended June 30, 2024
(Dollars in millions)	Corporate Securities		Asset Backed Securities		Foreign Corporate		Total		Corporate Securities		Asset Backed Securities		Foreign Corporate		Total
Beginning balance of fixed maturities	$	620	$	1,340	$	16	$	1,976	$	672	$	1,305	$	16	$	1,993
Total gains or (losses) (realized/unrealized)
Included in earnings (or changes in net assets)	5		—		—		5		6		—		—		6
Included in other comprehensive income (loss)	(1)		3		—		2		(1)		10		—		9
Purchases, issuances and settlements	(35)		99		(2)		62		(88)		126		(2)		37
Transfers in/(out) of Level 3 and reclassification of securities in/(out) of investment categories	—		—		—		—		—		—		—		—
Ending balance	$	589	$	1,442	$	14	$	2,045	$	589	$	1,442	$	14	$	2,045

The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date	$	3	$	—	$	—	$	3	$	4	$	—	$	—	$	4

(Some amounts may not reconcile due to rounding.)

- 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.

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