FAIR VALUE (Tables)

6 Months Ended

Jun. 30, 2026

Schedule of Fair Value Measurement Levels for all Assets, Recorded at Fair Value

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
(Dollars in millions)	June 30, 2026		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Fixed maturities - available for sale
U.S. Treasury securities and obligations of U.S. government
agencies and corporations	$	288	$	—	$	288	$	—
Tax-exempt obligations of U.S. states and political subdivisions	37		—		37		—
Corporate securities	6,270		—		5,905		365
Asset-backed securities	4,558		—		2,130		2,428
Mortgage-backed securities
Agency commercial	405		—		405		—
Non-agency commercial	818		—		818		—
Agency residential	3,581		—		3,581		—
Non-agency residential	1,661		—		1,661		—
Foreign government securities	1,041		—		1,041		—
Foreign corporate securities	2,494		—		2,481		13
Total fixed maturities - available for sale	21,152		—		18,346		2,806

Equity securities, fair value	114		96		18		—
Other invested assets, fair value	1,597		—		—		1,597

(Some amounts may not reconcile due to rounding.)


	Fair Value Measurement Using
(Dollars in millions)	December 31, 2025		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Fixed maturities - available for sale
U.S. Treasury securities and obligations of U.S. government
agencies and corporations	$	287	$	—	$	287	$	—
Tax-exempt obligations of U.S. states and political subdivisions	41		—		41		—
Corporate securities	6,301		—		5,931		370
Asset-backed securities	4,554		—		2,463		2,091
Mortgage-backed securities
Agency commercial	412		—		412		—
Non-agency commercial	718		—		718		—
Agency residential	3,766		—		3,766		—
Non-agency residential	1,587		—		1,587		—
Foreign government securities	1,030		—		1,030		—
Foreign corporate securities	2,284		—		2,270		14
Total fixed maturities - available for sale	20,978		—		18,504		2,474

Equity securities, fair value	108		88		20		—
Other invested assets, fair value	1,622		—		—		1,622

(Some amounts may not reconcile due to rounding.)

Schedule of Activity Under Level 3, Fair Value Measurements Using Significant Unobservable Inputs for Fixed Maturities - Available for Sale

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 June 30, 2026						Six Months Ended June 30, 2026
(Dollars in millions)	Corporate Securities		Asset-Backed Securities		Foreign Corporate		Total		Corporate Securities		Asset-Backed Securities		Foreign Corporate		Total
Beginning balance of fixed maturities	$	364	$	2,190	$	14	$	2,568	$	370	$	2,091	$	14	$	2,474
Total gains or (losses) (realized/unrealized)
Included in earnings (or changes in net assets)	(1)		(12)		—		(13)		(3)		(12)		—		(15)
Included in other comprehensive income (loss)	—		(1)		—		(1)		2		(5)		—		(3)
Purchases, issuances and settlements	2		250		—		253		(4)		353		—		350
Transfers in/(out) of Level 3 and reclassification of securities in/(out) of investment categories	—		—		—		—		—		—		—		—
Ending balance	$	365	$	2,428	$	13	$	2,806	$	365	$	2,428	$	13	$	2,806

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)	$	(12)	$	—	$	(13)	$	(2)	$	(12)	$	—	$	(14)

(Some amounts may not reconcile due to rounding.)


	Total Fixed Maturities - Available for Sale
	Three Months Ended June 30, 2025						Six Months Ended June 30, 2025
(Dollars in millions)	Corporate Securities		Asset-Backed Securities		Foreign Corporate		Total		Corporate Securities		Asset-Backed Securities		Foreign Corporate		Total
Beginning balance of fixed maturities	$	468	$	1,752	$	14	$	2,234	$	518	$	1,657	$	14	$	2,189
Total gains or (losses) (realized/unrealized)
Included in earnings (or changes in net assets)	(1)		—		—		(1)		(1)		—		—		(1)
Included in other comprehensive income (loss)	(8)		(3)		—		(12)		(15)		(2)		—		(17)
Purchases, issuances and settlements	(22)		114		—		91		(67)		207		—		140
Transfers in/(out) of Level 3 and reclassification of securities in/(out) of investment categories	—		—		—		—		—		—		—		—
Ending balance	$	436	$	1,862	$	14	$	2,312	$	436	$	1,862	$	14	$	2,312

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	$	(2)	$	—	$	—	$	(2)	$	(2)	$	—	$	—	$	(2)

(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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