Fair Value (Tables)

9 Months Ended

Sep. 30, 2026

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized in the following tables. Corporate bonds and other includes obligations of the U.S. Treasury, government-sponsored enterprises, foreign governments and redeemable preferred stock.


September 30, 2026	Level 1		Level 2		Level 3		Total
(In millions)

Fixed maturity securities:
Corporate bonds and other	$	282	$	23,197	$	1,560	$	25,039
States, municipalities and political subdivisions			8,367		41		8,408
Asset-backed			7,646		926		8,572
Fixed maturities available-for-sale	282		39,210		2,527		42,019
Fixed maturities trading	282						282
Total fixed maturities	$	564	$	39,210	$	2,527	$	42,301

Equity securities	$	725	$	528	$	31	$	1,284
Short-term and other	5,516		26				5,542
Receivables			65				65
Other liabilities			(7)				(7)
Payable to brokers	(83)		(12)				(95)

December 31, 2025


Fixed maturity securities:
Corporate bonds and other	$	238	$	24,529	$	1,483	$	26,250
States, municipalities and political subdivisions			8,386		45		8,431
Asset-backed			7,672		998		8,670
Fixed maturities available-for-sale	238		40,587		2,526		43,351
Fixed maturities trading	603		30				633
Total fixed maturities	$	841	$	40,617	$	2,526	$	43,984

Equity securities	$	762	$	497	$	33	$	1,292
Short-term and other	5,820		51				5,871

Payable to brokers	(43)						(43)

Schedule of Reconciliations of Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs

The following tables present reconciliations for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2026 and 2025:


			Net Realized Investment Gains (Losses) and Net Change in Unrealized Investment Gains (Losses)																Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at September 30		Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at September 30
2026	Balance, July 1		Included in Net Income		Included in OCI		Purchases		Sales		Settlements		Transfers into Level 3		Transfers out of Level 3		Balance, September 30
(In millions)

Fixed maturity securities:
Corporate bonds and other	$	1,594	$	(2)	$	(80)	$	61			$	(6)			$	(7)	$	1,560			$	(80)
States, municipalities and political subdivisions	44				(2)						(1)						41				(2)
Asset-backed	943		4		(35)		57				(30)				(13)		926				(35)
Fixed maturities available-for-sale	$	2,581	$	2	$	(117)	$	118	$	—	$	(37)	$	—	$	(20)	$	2,527	$	—	$	(117)



Equity securities	$	30	$	1													$	31	$	1


2025
(In millions)

Fixed maturity securities:
Corporate bonds and other	$	1,388			$	21	$	24			$	(33)					$	1,400			$	21
States, municipalities and political subdivisions	44																44
Asset-backed	886		$	8	8		93				(36)						959				9
Fixed maturities available-for-sale	$	2,318	$	8	$	29	$	117	$	—	$	(69)	$	—	$	—	$	2,403	$	—	$	30



Equity securities	$	10															$	10


			Net Realized Investment Gains (Losses) and Net Change in Unrealized Investment Gains (Losses)																Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at September 30		Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at September 30
2026	Balance, January 1		Included in Net Income		Included in OCI		Purchases		Sales		Settlements		Transfers into Level 3		Transfers out of Level 3		Balance, September 30
(In millions)

Fixed maturity securities:
Corporate bonds and other	$	1,483	$	(5)	$	(102)	$	225			$	(34)			$	(7)	$	1,560			$	(102)
States, municipalities and political subdivisions	45				(3)						(1)						41				(3)
Asset-backed	998		8		(56)		139				(76)				(87)		926				(56)
Fixed maturities available-for-sale	$	2,526	$	3	$	(161)	$	364	$	—	$	(111)	$	—	$	(94)	$	2,527	$	—	$	(161)



Equity securities	$	33	$	3					$	(5)							$	31


2025

Fixed maturity securities:
Corporate bonds and other	$	1,278	$	1	$	58	$	123			$	(75)	$	15			$	1,400			$	55
States, municipalities and political subdivisions	42				2												44				2
Asset-backed	876		13		5		142				(77)						959				6
Fixed maturities available-for-sale	$	2,196	$	14	$	65	$	265	$	—	$	(152)	$	15	$	—	$	2,403	$	—	$	63



Equity securities	$	20	$	1					$	(7)	$	(4)					$	10	$	(1)

Net investment gains and losses are reported in Net income as follows:


Category of Assets and Liabilities			Consolidated Condensed Statements of Operations Line Items

Fixed maturity securities available-for-sale			Investment gains (losses)
Fixed maturity securities trading			Net investment income
Equity securities			Investment gains (losses) and Net investment income
Other invested assets			Investment gains (losses) and Net investment income
Derivative financial instruments held in a trading portfolio			Net investment income
Derivative financial instruments, other			Investment gains (losses) and Operating revenues and other

Schedule of Significant Unobservable Inputs

The following tables present quantitative information about the significant unobservable inputs utilized in the fair value measurement of Level 3 assets. Valuations for assets and liabilities not presented in the tables below are primarily based on broker/dealer quotes for which there is a lack of transparency as to inputs used to develop the valuations. The quantitative detail of unobservable inputs from these broker quotes is neither provided nor reasonably available. The weighted average rate is calculated based on fair value.


September 30, 2026	Estimated Fair Value		Valuation Techniques	Unobservable Inputs	Range (Weighted Average)
	(In millions)

Fixed maturity securities	$	2,019	Discounted cash flow	Credit spread	1	%	—	11	%	(2	%)

December 31, 2025

Fixed maturity securities	$	1,927	Discounted cash flow	Credit spread	1	%	—	11	%	(2	%)

Schedule of Financial Assets and Liabilities not Measured at Fair Value

The carrying amount, estimated fair value and the level of the fair value hierarchy of the financial assets and liabilities which are not measured at fair value on the Consolidated Condensed Balance Sheets are presented in the following tables. The carrying amounts and estimated fair values of short-term debt and long-term debt exclude finance lease obligations. The carrying amounts reported on the Consolidated Condensed Balance Sheets for cash and short-term investments not carried at fair value and certain other assets and liabilities approximate fair value due to the short-term nature of these items.


	Carrying Amount		Estimated Fair Value
September 30, 2026			Level 1	Level 2		Level 3		Total
(In millions)

Assets:
Other invested assets, primarily mortgage loans	$	1,009				$	972	$	972

Liabilities:
Short-term debt	521			$	493	22		515
Long-term debt	8,417			6,999		961		7,960

December 31, 2025

Assets:
Other invested assets, primarily mortgage loans	$	1,079				$	1,072	$	1,072

Liabilities:
Short-term debt	1,051			$	1,051	2		1,053
Long-term debt	8,435			7,431		995		8,426

- 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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