v3.25.3
Fair Value Measurements
 9 Months Ended
Sep. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements
Note 12 – Fair Value Measurements
For a description of the policies, methods and assumptions that are used to estimate fair value and determine the fair value hierarchy for each class of financial instruments, see Note 12 in the Company's 2024 Form 10-K.
Financial Assets and Financial Liabilities Carried at Fair Value
The following table provides information about the Company's investment and derivative financial assets and liabilities carried at fair value on a recurring basis. Further information regarding insurance assets and liabilities carried at fair value is provided in Note 9E to the Consolidated Financial Statements in the Company's 2024 Form 10-K. Separate account assets are also recorded at fair value on the Company's Consolidated Balance Sheets and are reported separately in the Separate Accounts section below as gains and losses related to these assets generally accrue directly to contractholders.
(In millions)Quoted Prices in Active Markets for Identical Assets
(Level 1)		Significant Other Observable Inputs
(Level 2)		Significant Unobservable Inputs
(Level 3)		Total
September 30,
2025		December 31, 2024September 30,
2025		December 31, 2024September 30,
2025		December 31, 2024September 30,
2025		December 31, 2024
Financial assets at fair value
Debt securities
Federal government and agency$105 $165 $121 $116 $— $— $226 $281 
State and local government— — 25 37 — — 25 37 
Foreign government— — 412 344 — — 412 344 
Corporate
— — 7,130 8,049 313 374 7,443 8,423 
Mortgage and other asset-backed— — 207 295 38 43 245 338 
Total debt securities105 165 7,895 8,841 351 417 8,351 9,423 
Equity securities (1)
76 1 46 36 12 — 134 37 
Short-term investments— — 276 170 — — 276 170 
Derivative assets— — 74 168 936 — 1,010 168 
Financial liabilities at fair value
Derivative liabilities$— $— $20 $1 $320 $— $340 $1 
(1)Excludes certain equity securities that have no readily determinable fair value.
Level 3 Financial Assets and Financial Liabilities
Certain inputs for instruments classified in Level 3 are unobservable (supported by little or no market activity) and significant to their resulting fair value measurement. Unobservable inputs reflect the Company's best estimate of what hypothetical market participants would use to determine a transaction price for the asset or liability at the reporting date. Additionally, as discussed in Note 9E in the Company's 2024 Form 10-K, the Company classifies variable annuity assets and liabilities in Level 3 of the fair value hierarchy.
Information about Debt Securities
The significant unobservable input used to value our corporate and government debt securities and mortgage and other asset-backed securities is an adjustment for liquidity. This adjustment is needed to reflect current market conditions and issuer circumstances when there is limited trading activity for the security.

The following table summarizes the fair value and significant unobservable inputs that were developed directly by the Company and used in pricing these debt securities. The range and weighted average basis point amounts for liquidity reflect the Company's best estimates of the unobservable adjustments a market participant would make to calculate these fair values. An increase in liquidity spread adjustments would result in a lower fair value measurement, while a decrease would result in a higher fair value measurement.

Fair Value as ofUnobservable Adjustment Range (Weighted Average by Quantity) as of
(Fair value in millions)September 30,
2025		December 31,
2024
Unobservable Input
September 30, 2025
September 30,
2025		December 31,
2024
Debt securities
Corporate$312 $373 Liquidity
60 - 2360 (400)
bps
60 - 1520 (370)
bps
Mortgage and other asset-backed securities38 43 Liquidity
120 - 500 (290)
bps
100 - 550 (280)
bps
Other debt securities1 1 
Total Level 3 debt securities$351 $417 

Information about Derivative Instruments

Derivative Instruments associated with certain equity securities are valued each reporting period using a Monte Carlo simulation and estimated business enterprise value and are recorded in Other assets and Other non-current liabilities in the Consolidated Balance Sheets. The significant unobservable Level 3 measurement inputs used are forecasted earnings measures and equity as well as adjustments to reflect estimated volatility and credit spreads. See Note 11A to the Consolidated Financial Statements for further information.
Changes in Level 3 Financial Assets and Financial Liabilities Carried at Fair Value
The following table summarizes the changes in financial assets and financial liabilities classified in Level 3. Gains and losses reported in the table may include net changes in fair value that are attributable to both observable and unobservable inputs.
Three Months Ended
September 30,
Nine Months Ended
September 30,
(In millions)2025202420252024
Beginning balance$362 $397 $417 $447 
Losses included in Shareholders' net income
(9)(10)(23)(71)
Gains included in Other comprehensive income (loss)
21 8 31 3 
Purchases, sales and settlements
Purchases617 4 644 15 
Sales(1)(2)(3)(2)
Settlements(21)(4)(101)(19)
Total purchases, sales and settlements595 (2)540 (6)
Transfers into / (out of) Level 3
Transfers into Level 310 32 59 63 
Transfers out of Level 3— (2)(45)(13)
Total transfers into / (out of) Level 310 30 14 50 
Ending balance$979 $423 $979 $423 
Total losses included in Shareholders' net income attributable to instruments held at the reporting date
$(6)$(9)$(23)$(71)
Change in unrealized gain or (loss) included in Other comprehensive income (loss) for assets held at the end of the reporting period
$11 $8 $18 $3 

Total gains and losses included in Shareholders' net income in the tables above are reflected in the Consolidated Statements of Income as Net investment gains (losses) and Net investment income. Gains and losses included in Other comprehensive income (loss), net of tax, in the tables above are reflected in Net unrealized (depreciation) appreciation on securities and derivatives in the Consolidated Statements of Comprehensive Income.
Transfers into or out of the Level 3 category occur when unobservable inputs, such as the Company's best estimate of what a market participant would use to determine a current transaction price, become more or less significant to the fair value measurement. Market activity typically decreases during periods of economic uncertainty, and this decrease in activity reduces the availability of market observable data. As a result, the level of unobservable judgment that must be applied to the pricing of certain instruments increases and is typically observed through the widening of liquidity spreads. Transfers between Level 2 and Level 3 during 2025 and 2024 primarily reflected changes in liquidity estimates for certain private placement issuers across several sectors. See discussion under Level 3 Financial Assets and Financial Liabilities above for more information.
Separate Accounts
The investment income and fair value gains and losses of Separate account assets generally accrue directly to the contractholders and, together with their deposits and withdrawals, are excluded from the Company's Consolidated Statements of Income and Cash Flows. The separate account activity for the nine months ended September 30, 2025 and 2024 was primarily driven by changes in the market values of the underlying separate account investments.
Fair values of Separate account assets were as follows:
Quoted Prices in Active Markets for Identical Assets
(Level 1)		Significant Other Observable Inputs
(Level 2)		Significant Unobservable Inputs
(Level 3)		Total
(In millions)September 30,
2025		December 31,
2024		September 30,
2025		December 31,
2024		September 30,
2025		December 31,
2024		September 30,
2025		December 31,
2024
Guaranteed separate accounts (See Note 16)
$248 $231 $333 $345 $— $— $581 $576 
Non-guaranteed separate accounts (1)
274 267 5,809 5,575 213 228 6,296 6,070 
Subtotal$522 $498 $6,142 $5,920 $213 $228 6,877 6,646 
Non-guaranteed separate accounts priced at net asset value as a practical expedient (1)
656 632 
Total$7,533 $7,278 
(1)Non-guaranteed separate accounts include $3.8 billion as of both September 30, 2025 and December 31, 2024 in assets supporting the Company's pension plans, including $0.2 billion classified in Level 3 as of both September 30, 2025 and December 31, 2024. Non-guaranteed separate accounts are primarily comprised of securities partnerships, real estate and real estate funds.
Separate account assets classified in Level 3 primarily support the Company's pension plans and include certain newly issued, privately placed, complex or illiquid securities that are priced using methods discussed above, as well as commercial mortgage loans. Activity, including transfers into and out of Level 3, was not material for the three and nine months ended September 30, 2025 or 2024.
Assets and Liabilities Measured at Fair Value under Certain Conditions
Some financial assets and liabilities are not carried at fair value, such as commercial mortgage loans that are carried at unpaid principal, investment real estate that is carried at depreciated cost and equity securities with no readily determinable fair value when there are no observable market transactions. However, these financial assets and liabilities may be measured using fair value under certain conditions, such as when investments become impaired and are written down to their fair value, or when there are observable price changes from orderly market transactions of equity securities that otherwise had no readily determinable fair value.

For the nine months ended September 30, 2025, impairments recognized requiring the assets and liabilities described above to be measured at fair value were not material. For the nine months ended September 30, 2024, we determined our investment in VillageMD was fully impaired and recorded a $2.7 billion loss in Net investment gains (losses) in the Company's Consolidated Statements of Income. Observable price changes for equity securities with no readily determinable fair value were not material for the nine months ended September 30, 2025 or September 30, 2024.
Fair Value Disclosures for Financial Instruments Not Carried at Fair Value
The following table includes the Company's financial instruments not recorded at fair value but for which fair value disclosure is required. In addition to universal life products and finance leases, financial instruments that are carried in the Company's Consolidated Balance Sheets at amounts that approximate fair value are excluded from the following table.
Classification in Fair Value HierarchySeptember 30, 2025December 31, 2024
(In millions)Fair ValueCarrying ValueFair ValueCarrying Value
Commercial mortgage loansLevel 3$1,214 $1,258 $1,256 $1,351 
Long-term debt, including current maturities, excluding finance leasesLevel 2$32,378 $33,923 $28,392 $31,008