v3.26.3
Fair Value
 9 Months Ended
Sep. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Fair Value
Assets and liabilities recorded at fair value in our consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. These assets and liabilities are classified into one of three levels of hierarchy defined by GAAP.
For a description of the methods and assumptions that are used to estimate and determine the fair value hierarchy classification for each class of financial instruments, see Note 7, “Fair Value,” to our audited consolidated financial statements as of and for the year ended December 31, 2025 included in Part II, Item 8 of our 2025 Annual Report on Form 10-K.
A summary of fair value measurements by level for assets and liabilities measured at fair value on a recurring basis at September 30, 2026 and December 31, 2025 is as follows:
Level ILevel IILevel IIITotal
September 30, 2026
Assets:
Cash equivalents$5,687$—$—$5,687
Fixed maturity securities, available-for-sale:
United States Government securities—1,531—1,531
Government sponsored securities—32—32
Foreign government securities—14—14
States, municipalities and political subdivisions, tax-exempt—3,427—3,427
Corporate securities—13,00639713,403
Residential mortgage-backed securities—3,71533,718
Commercial mortgage-backed securities—1,509—1,509
Other asset-backed securities—2,0418832,924
Total fixed maturity securities, available-for-sale—25,2751,28326,558
Equity securities:
Exchange traded funds2,063——2,063
Common equity securities—40—40
Private equity securities——4848
Total equity securities2,06340482,151
Other invested assets - common equity securities5—38
Securities lending collateral—3,066—3,066
Derivatives - other assets—72—72
Total assets$7,755$28,453$1,334$37,542
Percentage of total assets at fair value21%76%3%100%
Liabilities:
Derivatives - other liabilities$—$(602)$—$(602)
Total liabilities$—$(602)$—$(602)
December 31, 2025
Assets:
Cash equivalents$5,184$—$—$5,184
Fixed maturity securities, available-for-sale:
United States Government securities—1,503—1,503
Government sponsored securities—81—81
Foreign government securities—13—13
States, municipalities and political subdivisions, tax-exempt—3,701—3,701
Corporate securities—13,37341013,783
Residential mortgage-backed securities—3,090173,107
Commercial mortgage-backed securities—2,073—2,073
Other asset-backed securities—1,8788662,744
Total fixed maturity securities, available-for-sale—25,7121,29327,005
Equity securities:
Exchange traded funds650——650
Common equity securities—35—35
Private equity securities——5555
Total equity securities6503555740
Other invested assets - common equity securities6——6
Securities lending collateral—2,692—2,692
Derivatives - other assets—62—62
Total assets$5,840$28,501$1,348$35,689
Percentage of total assets at fair value16%80%4%100%
Liabilities:
Derivatives - other liabilities$—$(28)$—$(28)
Total liabilities$—$(28)$—$(28)
There were no individually material transfers into or out of Level III during the three and nine months ended September 30, 2026 or 2025. There were no adjustments to quoted market prices obtained from the pricing services during the three and nine months ended September 30, 2026 or 2025.
Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances. The fair values of goodwill and other intangible assets acquired in certain business acquisitions during the years ended December 31, 2025 and 2024 were finalized based on a valuation performed using the income approach. The income approach estimates fair value based on the present value of the cash flows that the assets could be expected to generate in the future. We developed internal estimates for the expected cash flows and discount rate in the present value calculation.
As discussed in more detail within Note 4, “Investments”, we entered into an agreement that included a put and call option associated with our minority interest ownership of Mosaic Health in 2024. The resulting net put option liability was recorded at its fair value measured at the date of acquisition using Level III inputs with an election not to mark the derivative to market, which is further discussed and disclosed in Note 5, “Derivative Financial Instruments”. The net put option fair value for Mosaic Health was $2,763 and $2,717 at September 30, 2026 and December 31, 2025, respectively.
As discussed in Note 5, “Derivative Financial Instruments”, an agreement that included a put and call option associated with our minority interest ownership of Liberty Dental, for which the fair value of the net put liability was $327 at December 31, 2025, was replaced with a variable-priced forward contract recorded at fair value of $227 as of September 30, 2026. The net put option liability was measured and recorded at fair value at the date of acquisition using Level III inputs, with an election not to mark the derivative to market. The variable-priced forward contract is a derivative carried at estimated fair value.
For the three and nine months ended September 30, 2026, there were no material assets or liabilities measured at fair value on a nonrecurring basis other than the net put option on Mosaic Health. Other than the goodwill and intangible assets acquired and liabilities assumed in our business acquisitions and the net put option on Mosaic Health and Liberty Dental, there were no material assets or liabilities measured at fair value on a nonrecurring basis during the three and nine months ended September 30, 2025
In addition to the preceding disclosures on assets recorded at fair value in the consolidated balance sheets, FASB guidance also requires the disclosure of fair values for certain other financial instruments for which it is practicable to estimate fair value, whether or not such values are recognized in our consolidated balance sheets.
Non-financial instruments such as property and equipment, other current assets, deferred income taxes, intangible assets and certain financial instruments, such as limited partnerships, joint ventures, other non-controlled corporations, corporate-owned life insurance policies, and policy liabilities, are excluded from the fair value disclosures. Therefore, the fair value amounts cannot be aggregated to determine our underlying economic value.
The carrying amounts reported in the consolidated balance sheets for cash, premium receivables, self-funded receivables, other receivables, unearned income, accounts payable and accrued expenses, and certain other current liabilities approximate fair value because of the short-term nature of these items. These assets and liabilities are not listed in the table below.
See Note 7, “Fair Value,” to our audited consolidated financial statements as of and for the year ended December 31, 2025 included in Part II, Item 8 of our 2025 Annual Report on Form 10-K for details on the methods and assumptions used to estimate the fair value for each class of financial instruments that are recorded at their carrying value in our consolidated balance sheets.
A summary of the estimated fair values by level for each class of financial instruments that is recorded at its carrying value on our consolidated balance sheets at September 30, 2026 and December 31, 2025 is as follows:
Carrying
Value		Estimated Fair Value
Level ILevel IILevel IIITotal
September 30, 2026
Assets:
Other invested assets$901 $— $— $852 $852 
Liabilities:
Debt:
Notes30,757 — 27,370 — 27,370 
Options1,330 — — 2,763 2,763 
December 31, 2025
Assets:
Other invested assets$781 $— $— $762 $762 
Liabilities:
Debt:
Short-term borrowings150 — 150 — 150 
Notes31,896 — 30,207 — 30,207 
Options1,726 — — 3,044 3,044