Fair Value (Tables)

3 Months Ended

Mar. 31, 2026

Composition of Investment Portfolio by Major Security Type

The composition of the investment portfolio by major security type and our outstanding debt was:


	Fair Value
(millions)	Level 1		Level 2		Level 3		Total		Cost
March 31, 2026
Fixed maturities:
U.S. government	$	44,417	$	0	$	0	$	44,417	$	44,676
State and local government	0		3,087		0		3,087		3,135
Foreign government	0		16		0		16		16
Corporate and other debt	0		20,982		4		20,986		20,994
Residential mortgage-backed	0		4,136		0		4,136		4,127
Commercial mortgage-backed	0		6,991		0		6,991		7,228
Other asset-backed	0		8,199		0		8,199		8,232





Total fixed maturities	44,417		43,411		4		87,832		88,408
Short-term investments	2,072		54		0		2,126		2,126
Total available-for-sale securities	46,489		43,465		4		89,958		90,534
Equity securities:

Nonredeemable preferred stocks	0		191		49		240		259



Common equities:
Common stocks	3,891		0		5		3,896		802
Other risk investments	0		0		37		37		37
Subtotal common equities	3,891		0		42		3,933		839
Total equity securities	3,891		191		91		4,173		1,098
Total portfolio	$	50,380	$	43,656	$	95	$	94,131	$	91,632
Debt	$	0	$	7,728	$	0	$	7,728	$	8,386


	Fair Value
(millions)	Level 1		Level 2		Level 3		Total		Cost
March 31, 2025
Fixed maturities:
U.S. government	$	44,318	$	0	$	0	$	44,318	$	44,523
State and local government	0		2,604		0		2,604		2,688
Foreign government	0		16		0		16		16
Corporate and other debt	0		16,011		5		16,016		16,047
Residential mortgage-backed	0		2,183		0		2,183		2,172
Commercial mortgage-backed	0		4,825		0		4,825		5,144
Other asset-backed	0		7,139		0		7,139		7,164





Total fixed maturities	44,318		32,778		5		77,101		77,754
Short-term investments	2,595		0		0		2,595		2,595
Total available-for-sale securities	46,913		32,778		5		79,696		80,349
Equity securities:

Nonredeemable preferred stocks	0		524		60		584		608



Common equities:
Common stocks	3,344		0		9		3,353		743
Other risk investments	0		0		31		31		31
Subtotal common equities	3,344		0		40		3,384		774
Total equity securities	3,344		524		100		3,968		1,382
Total portfolio	$	50,257	$	33,302	$	105	$	83,664	$	81,731
Debt	$	0	$	6,247	$	0	$	6,247	$	6,894


	Fair Value
(millions)	Level 1		Level 2		Level 3		Total		Cost
December 31, 2025
Fixed maturities:
U.S. government	$	43,298	$	0	$	0	$	43,298	$	43,114
State and local government	0		3,303		0		3,303		3,342
Foreign government	0		17		0		17		17
Corporate and other debt	0		19,987		4		19,991		19,773
Residential mortgage-backed	0		3,175		0		3,175		3,152
Commercial mortgage-backed	0		5,973		0		5,973		6,194
Other asset-backed	0		7,109		0		7,109		7,112





Total fixed maturities	43,298		39,564		4		82,866		82,704
Short-term investments	9,810		195		0		10,005		10,005
Total available-for-sale securities	53,108		39,759		4		92,871		92,709
Equity securities:

Nonredeemable preferred stocks	0		344		60		404		419



Common equities:
Common stocks	4,057		0		5		4,062		783
Other risk investments	0		0		36		36		36
Subtotal common equities	4,057		0		41		4,098		819
Total equity securities	4,057		344		101		4,502		1,238
Total portfolio	$	57,165	$	40,103	$	105	$	97,373	$	93,947
Debt	$	0	$	6,345	$	0	$	6,345	$	6,897

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following tables provide a summary of changes in fair value associated with Level 3 assets for the three months ended March 31, 2026 and 2025:


































(millions)	Fair Value at December 31, 2025		Calls/ Maturities/ Paydowns/Other		Purchases		Sales		Net Realized (Gain)/Loss on Sales		Change in Valuation1		Net Transfers In (Out)		Fair Value at March 31, 2026
Fixed maturities:
Corporate and other debt	$	4	$	0	$	0	$	0	$	0	$	0	$	0	$	4
Equity securities:

Nonredeemable preferred stocks	60		0		0		(5)		(7)		1		0		49

Common equities:
Common stocks	5		0		0		0		0		0		0		5
Other risk investments	36		1		0		0		0		0		0		37
Total Level 3 securities	$	105	$	1	$	0	$	(5)	$	(7)	$	1	$	0	$	95









(millions)	Fair Value at December 31, 2024		Calls/ Maturities/ Paydowns/Other		Purchases		Sales		Net Realized (Gain)/Loss on Sales		Change in Valuation1		Net Transfers In (Out)		Fair Value at March 31, 2025
Fixed maturities:
Corporate and other debt	$	5	$	0	$	0	$	0	$	0	$	0	$	0	$	5
Equity securities:
Nonredeemable preferred stocks	52		0		8		0		0		0		0		60

Common equities:
Common stocks	23		0		0		0		0		(14)		0		9
Other risk investments	25		6		0		0		0		0		0		31
Total Level 3 securities	$	105	$	6	$	8	$	0	$	0	$	(14)	$	0	$	105

1For fixed maturities, amounts included are unrealized gains (losses) reflected in accumulated other comprehensive income (loss) on our consolidated balance sheets. For equity securities, amounts included are net holding period gains (losses) on securities on our consolidated statements of comprehensive income.

Fair Value Measurement Inputs and Valuation Techniques

The following tables provide a summary of the quantitative information about Level 3 fair value measurements for our applicable securities at March 31, 2026 and 2025, and December 31, 2025:



($ in millions)	Fair Value at March 31, 2026		Valuation Technique	Unobservable Input	Range of Input Values Increase (Decrease)	Weighted Average Increase (Decrease)
Fixed maturities:
Corporate and other debt	$	4	Market comparables	Weighted average market capitalization price change %	(1.0)%	(1.0)	%
Equity securities:
Nonredeemable preferred stocks	49		Market comparables	Weighted average market capitalization price change %	(23.6)% to 0%	(12.4)	%








Common stocks	5		Market comparables	Weighted average market capitalization price change %	(41.3)% to (12.9)%	(23.6)	%
Subtotal Level 3 securities	58
Pricing exemption securities	37
Total Level 3 securities	$	95

($ in millions)

Fair Value at March 31, 2025

Valuation
Technique

Unobservable Input

Range of
Input Values
Increase
(Decrease)

Weighted
Average
Increase
(Decrease)

Fixed maturities:

Corporate and other debt

Market comparables

Weighted average market capitalization price change %

0.7% to 0.8%

0.8

Equity securities:

Nonredeemable preferred stocks

Market comparables

Weighted average market capitalization price change %

(11.8)% to 16.1%

6.4

Common stocks

Market comparables

Weighted average market capitalization price change %

(36.8)% to 41.5%

6.7

Subtotal Level 3 securities

Pricing exemption securities

Total Level 3 securities

105

($ in millions)

Fair Value at December 31, 2025

Valuation
Technique

Unobservable Input

Range of
Input Values
Increase
(Decrease)

Weighted
Average
Increase
(Decrease)

Fixed maturities:

Corporate and other debt

Market comparables

Weighted average market capitalization price change %

(0.1)% to 0.1%

Equity securities:

Nonredeemable preferred stocks

Market comparables

Weighted average market capitalization price change %

(14.5)% to 7.6%

(4.5)

Common stocks

Market comparables

Weighted average market capitalization price change %

(40.9)% to 36.3%

7.6

Subtotal Level 3 securities

Pricing exemption securities

Total Level 3 securities

105

- 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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