v3.26.1
Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
In accordance with accounting guidance for fair value measurements and disclosures, we categorized our financial instruments, based on the priority of the observable and market-based data for the valuation technique used, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices with readily available independent data in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable market inputs (Level 3). When various inputs for measurement fall within different levels of the fair value hierarchy, the lowest observable input that has a significant impact on fair value measurement is used. Our valuation techniques have not changed from those used at December 31, 2025, and ultimately management determines fair value. See our 2025 Annual Report on Form 10-K, Item 8, Note 3, Fair Value Measurements, Page 134, for information on characteristics and valuation techniques used in determining fair value.

Fair Value Disclosures for Assets
The following tables illustrate the fair value hierarchy for those assets measured at fair value on a recurring basis at June 30, 2026, and December 31, 2025. We do not have any liabilities carried at fair value.
(Dollars in millions)Level 1Level 2Level 3Total
At June 30, 2026
Fixed maturities, available for sale:    
Corporate $— $10,456 $— $10,456 
States, municipalities and political subdivisions— 4,882 — 4,882 
Government-sponsored enterprises— 2,471 — 2,471 
Asset-backed — 808 — 808 
United States government317 — — 317 
Foreign government— 20 — 20 
Subtotal317 18,637 — 18,954 
Common equities12,883 — — 12,883 
Nonredeemable preferred equities— 311 — 311 
Separate accounts taxable fixed maturities100 850 — 950 
Short-term investments142 — — 142 
Top Hat savings plan mutual funds and common
   equity (included in Other assets)		112 — — 112 
Total$13,554 $19,798 $— $33,352 
At December 31, 2025
Fixed maturities, available for sale:    
Corporate $— $9,711 $— $9,711 
States, municipalities and political subdivisions— 4,919 — 4,919 
Government-sponsored enterprises— 2,359 — 2,359 
Asset-backed — 797 — 797 
United States government313 — — 313 
Foreign government— 24 — 24 
Subtotal313 17,810 — 18,123 
Common equities12,373 — — 12,373 
Nonredeemable preferred equities— 321 — 321 
Separate accounts taxable fixed maturities 35 872 — 907 
Short-term investments148 — — 148 
Top Hat savings plan mutual funds and common
  equity (included in Other assets)		102 — — 102 
Total$12,971 $19,003 $— $31,974 
 
We also held Level 1 cash and cash equivalents of $1.750 billion and $1.431 billion at June 30, 2026, and December 31, 2025, respectively.

Fair Value Disclosures for Assets and Liabilities Not Carried at Fair Value 
The disclosures below are presented to provide information about the effects of current market conditions on financial instruments that are not reported at fair value in our condensed consolidated financial statements.
 
This table summarizes the book value and principal amounts of our long-term debt:
(Dollars in millions) Book valuePrincipal amount
Interest
rate		Year of 
issue		 June 30,December 31,June 30,December 31,
 2026202520262025
6.900%1998Senior debentures, due 2028$27 $27 $28 $28 
6.920%2005Senior debentures, due 2028391 391 391 391 
6.125%2004Senior notes, due 2034373 372 374 374 
Total $791 $790 $793 $793 
 
The following table shows fair values of our note payable and long-term debt:
(Dollars in millions)Level 1Level 2Level 3Total
At June 30, 2026
Note payable$— $17 $— $17 
6.900% senior debentures, due 2028
— 29 — 29 
6.920% senior debentures, due 2028
— 408 — 408 
6.125% senior notes, due 2034
— 393 — 393 
Total$— $847 $— $847 
At December 31, 2025
Note payable$— $25 $— $25 
6.900% senior debentures, due 2028
— 29 — 29 
6.920% senior debentures, due 2028
— 416 — 416 
6.125% senior notes, due 2034
— 404 — 404 
Total$— $874 $— $874 
 
The following table shows the fair value of our life policy loans included in other invested assets and the fair values of our deferred annuities and structured settlements included in life policy and investment contract reserves:
(Dollars in millions)Level 1Level 2Level 3Total
At June 30, 2026
Life policy loans$— $— $43 $43 
Deferred annuities$— $— $519 $519 
Structured settlements— 117 — 117 
Total$— $117 $519 $636 
At December 31, 2025
Life policy loans$— $— $43 $43 
Deferred annuities$— $— $530 $530 
Structured settlements— 123 — 123 
Total$— $123 $530 $653 
 
Outstanding principal and interest for these life policy loans totaled $39 million and $38 million at June 30, 2026, and December 31, 2025, respectively.
 
Recorded reserves for the deferred annuities were $540 million and $554 million at June 30, 2026, and December 31, 2025, respectively. Recorded reserves for the structured settlements were $107 million and $111 million at June 30, 2026, and December 31, 2025, respectively.