Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2026

Fair Value Hierarchy for Assets Measured at Fair Value on a Recurring Basis

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 1		Level 2		Level 3		Total
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 government	317		—		—		317
Foreign government	—		20		—		20


Subtotal	317		18,637		—		18,954
Common equities	12,883		—		—		12,883
Nonredeemable preferred equities	—		311		—		311
Separate accounts taxable fixed maturities	100		850		—		950
Short-term investments	142		—		—		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 government	313		—		—		313
Foreign government	—		24		—		24

Subtotal	313		17,810		—		18,123
Common equities	12,373		—		—		12,373
Nonredeemable preferred equities	—		321		—		321
Separate accounts taxable fixed maturities	35		872		—		907
Short-term investments	148		—		—		148
Top Hat savings plan mutual funds and common equity (included in Other assets)	102		—		—		102
Total	$	12,971	$	19,003	$	—	$	31,974

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block]

This table summarizes the book value and principal amounts of our long-term debt:


(Dollars in millions)			Book value				Principal amount
Interest rate	Year of issue		June 30,		December 31,		June 30,		December 31,
			2026		2025		2026		2025
6.900%	1998	Senior debentures, due 2028	$	27	$	27	$	28	$	28
6.920%	2005	Senior debentures, due 2028	391		391		391		391
6.125%	2004	Senior notes, due 2034	373		372		374		374
Total			$	791	$	790	$	793	$	793

Fair Values of Deferred Annuities, Structured Settlements and Other Items

The following table shows fair values of our note payable and long-term debt:


(Dollars in millions)	Level 1		Level 2		Level 3		Total
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

Fair Value of Life Policy Loans

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 1		Level 2		Level 3		Total
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