FAIR VALUE (Tables)

3 Months Ended

Mar. 31, 2026

Schedule of Fair Value Measurement Levels for all Assets and Liabilities

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
	March 31, 2026		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
(Dollars in millions)
Assets:
Fixed maturities - available for sale
U.S. Treasury securities and obligations of U.S. government
agencies and corporations	$	874	$	—	$	874	$	—
Obligations of U.S. States and political subdivisions	40		—		40		—
Corporate securities	9,843		—		9,479		364
Asset-backed securities	4,898		—		2,708		2,190
Mortgage-backed securities
Agency commercial	408		—		408		—
Non-agency commercial	1,215		—		1,215		—
Agency residential	5,309		—		5,309		—
Non-agency residential	1,783		—		1,783		—
Foreign government securities	2,311		—		2,311		—
Foreign corporate securities	7,970		—		7,957		14
Total fixed maturities - available for sale	34,651		—		32,084		2,568

Equity securities, fair value	177		89		89		—

(Some amounts may not reconcile due to rounding.)


			Fair Value Measurement Using
	December 31, 2025		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
(Dollars in millions)
Assets:
Fixed maturities - available for sale
U.S. Treasury securities and obligations of U.S. government
agencies and corporations	$	830	$	—	$	830	$	—
Obligations of U.S. States and political subdivisions	41		—		41		—
Corporate securities	9,882		—		9,512		370
Asset-backed securities	5,077		—		2,987		2,091
Mortgage-backed securities
Agency commercial	412		—		412		—
Non-agency commercial	1,121		—		1,121		—
Agency residential	5,465		—		5,465		—
Non-agency residential	1,721		—		1,721		—
Foreign government securities	2,371		—		2,371		—
Foreign corporate securities	7,653		—		7,639		14
Total fixed maturities - available for sale	34,573		—		32,099		2,474

Equity securities, fair value	180		88		92		—

(Some amounts may not reconcile due to rounding.)

Schedule of Activity Under Level 3, Fair Value Measurements Using Significant Unobservable Inputs by Asset Type

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 March 31, 2026
(Dollars in millions)		Corporate Securities		Asset-Backed Securities		Foreign Corporate		Total
Beginning balance of fixed maturities		$	370	$	2,091	$	14	$	2,474
Total gains or (losses) (realized/unrealized)
Included in earnings		(2)		—		—		(2)
Included in other comprehensive income (loss)		2		(4)		—		(2)
Purchases, issuances and settlements		(6)		103		—		97
Transfers in/(out) of Level 3 and reclassification of
securities in/(out) of investment categories		—		—		—		—
Ending balance of fixed maturities		$	364	$	2,190	$	14	$	2,568

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		$	(1)	$	—	$	—	$	(1)

(Some amounts may not reconcile due to rounding.)


	Total Fixed Maturities - Available for Sale
	Three Months Ended March 31, 2025
(Dollars in millions)	Corporate Securities		Asset-Backed Securities		Foreign Corporate		Total
Beginning balance of fixed maturities	$	518	$	1,657	$	14	$	2,189
Total gains or (losses) (realized/unrealized)
Included in earnings	—		—		—		—
Included in other comprehensive income (loss)	(6)		1		—		(5)
Purchases, issuances and settlements	(45)		94		—		49
Transfers in/(out) of Level 3 and reclassification of
securities in/(out) of investment categories	—		—		—		—
Ending balance of fixed maturities	$	468	$	1,752	$	14	$	2,234

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	$	—	$	—	$	—	$	—

(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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