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Fair Value Measurement (Tables)

9 Months Ended

Sep. 30, 2025

Fair Value Disclosures [Abstract]

Fair Value Hierarchy of Financial Instruments Carried at Fair Value

Amounts recorded at fair value in the Company’s financial statements are presented in the tables below.

Fair Value Hierarchy of Financial Instruments Carried at Fair Value

As of September 30, 2025

			Fair Value Hierarchy
			Level 1						Level 2						Level 3						Total
			(in millions)
Assets:
Fixed-maturity securities, available-for-sale
Obligations of state and political subdivisions			$	—					$	1,745					$	10					$	1,755
U.S. government and agencies			—						48						—						48
Corporate securities			—						2,755						168						2,923
Mortgage-backed securities:
RMBS			—						458						145						603
CMBS			—						185						—						185
Asset-backed securities			—						150						521						671
Non-U.S. government securities			—						93						—						93
Total fixed-maturity securities, available-for-sale			—						5,434						844						6,278
Fixed-maturity securities, trading			—						132						4						136
Short-term investments			1,329						3						—						1,332
Other invested assets (1)			—						—						4						4
FG VIEs’ assets			—						—						145						145
Assets of CIVs, equity securities			—						—						132						132
Other assets			78						64						17						159
Total assets carried at fair value			$	1,407					$	5,633					$	1,146					$	8,186
Liabilities:
FG VIEs’ liabilities (2)			$	—					$	—					$	159					$	159
Other liabilities			—						—						31						31
Total liabilities carried at fair value			$	—					$	—					$	190					$	190

Fair Value Hierarchy of Financial Instruments Carried at Fair Value

As of December 31, 2024

			Fair Value Hierarchy
			Level 1						Level 2						Level 3						Total
			(in millions)
Assets:
Fixed-maturity securities, available-for sale
Obligations of state and political subdivisions			$	—					$	1,930					$	10					$	1,940
U.S. government and agencies			—						67						—						67
Corporate securities			—						2,382						—						2,382
Mortgage-backed securities:
RMBS			—						422						145						567
CMBS			—						186						—						186
Asset-backed securities			—						127						1,031						1,158
Non-U.S. government securities			—						69						—						69
Total fixed-maturity securities, available-for-sale			—						5,183						1,186						6,369
Fixed-maturity securities, trading			—						142						5						147
Short-term investments			1,218						3						—						1,221
Other invested assets (1)			—						—						4						4
FG VIEs’ assets			—						—						147						147
Assets of CIVs, equity securities			—						—						99						99
Other assets			65						59						7						131
Total assets carried at fair value			$	1,283					$	5,387					$	1,448					$	8,118
Liabilities:
FG VIEs’ liabilities (2)			$	—					$	—					$	164					$	164
Other liabilities			—						—						34						34
Total liabilities carried at fair value			$	—					$	—					$	198					$	198

___________________

(1)    Other invested assets includes Level 3 mortgage loans that are recorded at fair value on a non-recurring basis.

(2)    FG VIEs’ liabilities include those with and without recourse. See Note 8, Variable Interest Entities.

Fair Value Assets Measured on Recurring Basis

The tables below present a roll forward of the Company’s Level 3 financial instruments carried at fair value on a recurring basis during third quarter 2025, third quarter 2024, nine months 2025 and nine months 2024.

Roll Forward of Level 3 Assets (Liabilities) at Fair Value on a Recurring Basis

Third Quarter 2025

			Fixed-Maturity Securities, Available-for-Sale
			Obligations of State and Political Subdivisions						Corporate						RMBS						Asset- Backed Securities						Fixed-Maturity Securities, Trading						FG VIEs’ Assets						Assets of CIVs, Equity Securities						Other (7)
			(in millions)
Fair value as of June 30, 2025			$	10					$	84					$	142					$	977					$	4					$	153					$	121					$	5
Total pre-tax realized and unrealized gains (losses) recorded in:
Net income (loss)			—						1			(1)			3			(1)			3			(1)			1			(10)			7			(2)			11			(4)			9			(3)
Other comprehensive income (loss)			—						10						6						(3)						—						—						—						1
Purchases			—						73						—						40						—						—						—						—
Sales			—						—						—						—						—						—						—						—
Settlements			—						—						(6)						(496)						(1)						(6)						—						—
Deconsolidations			—						—						—						—						—						(9)						—						—
Fair value as of September 30, 2025			$	10					$	168					$	145					$	521					$	4					$	145					$	132					$	15
Change in unrealized gains (losses) related to financial instruments held as of September 30, 2025 included in:
Earnings																											$	—					$	6		(2)			$	11		(4)			$	9		(3)
OCI			$	—					$	10					$	6					$	(2)																							$	1

Roll Forward of Level 3 Assets (Liabilities) at Fair Value on a Recurring Basis

Third Quarter 2025

			Credit Derivative Liability, net (5)						FG VIEs’ Liabilities (8)
			(in millions)
Fair value as of June 30, 2025			$	(29)					$	(161)
Total pre-tax realized and unrealized gains (losses) recorded in:
Net income (loss)			5			(6)			(4)			(2)
Other comprehensive income (loss)			—						1
Settlements			(2)						5
Fair value as of September 30, 2025			$	(26)					$	(159)
Change in unrealized gains (losses) related to financial instruments held as of September 30, 2025 included in:
Earnings			$	3		(6)			$	(4)		(2)
OCI									$	1

Roll Forward of Level 3 Assets (Liabilities) at Fair Value on a Recurring Basis

Third Quarter 2024

			Fixed-Maturity Securities, Available-for-Sale																														Assets of CIVs
			Obligations of State and Political Subdivisions						RMBS						Asset- Backed Securities						Fixed-Maturity Securities, Trading						FG VIEs’ Assets						Equity Securities						Structured Products						Other (7)
			(in millions)
Fair value as of June 30, 2024			$	7					$	150					$	795					$	—					$	160					$	93					$	225					$	6
Total pre-tax realized and unrealized gains (losses) recorded in:
Net income (loss)			—						5			(1)			7			(1)			—						2			(2)			9			(4)			(5)			(4)			(4)			(3)
Other comprehensive income (loss)			—						3						(3)						—						—						—						—						1
Purchases			—						—						19						—						—						—						25						1
Sales			—						—						—						—						—						(3)						—						—
Settlements			—						(6)						(31)						(2)						(6)						—						—						—
Reclassifications (9)			—						—						—						8						—						—						(8)						—
Transfers out of Level 3			—						—						—						—						—						(2)						—						—
Fair value as of September 30, 2024			$	7					$	152					$	787					$	6					$	156					$	97					$	237					$	4
Change in unrealized gains (losses) related to financial instruments held as of September 30, 2024 included in:
Earnings																					$	—					$	—					$	9		(4)			$	(1)		(4)			$	(4)		(3)
OCI			$	—					$	3					$	(3)																													$	(1)

Roll Forward of Level 3 Assets (Liabilities) at Fair Value on a Recurring Basis

Third Quarter 2024

			Credit Derivative Liability, net (5)						FG VIEs’ Liabilities (8)
			(in millions)
Fair value as of June 30, 2024			$	(34)					$	(393)
Total pre-tax realized and unrealized gains (losses) recorded in:
Net income (loss)			3			(6)			(3)			(2)
Other comprehensive income (loss)			—						(1)
Issuances			(2)						—
Settlements			(1)						5
Fair value as of September 30, 2024			$	(34)					$	(392)
Change in unrealized gains (losses) related to financial instruments held as of September 30, 2024 included in:
Earnings			$	1		(6)			$	(4)		(2)
OCI									$	(1)

Roll Forward of Level 3 Assets (Liabilities) at Fair Value on a Recurring Basis

Nine Months 2025

			Fixed-Maturity Securities, Available-for-Sale
			Obligations of State and Political Subdivisions						Corporate						RMBS						Asset- Backed Securities						Fixed-Maturity Securities, Trading						FG VIEs’ Assets						Assets of CIVs, Equity Securities						Other (7)
			(in millions)
Fair value as of December 31, 2024			$	10					$	—					$	145					$	1,031					$	5					$	147					$	99					$	5
Total pre-tax realized and unrealized gains (losses) recorded in:
Net income (loss)			2			(1)			1			(1)			7			(1)			21			(1)			1			(10)			14			(2)			33			(4)			10			(3)
Other comprehensive income (loss)			—						20						12						8						—						—						—						—
Purchases			—						147						—						40						—						—						—						—
Sales			—						—						—						(12)						—						—						—						—
Settlements			(2)						—						(19)						(567)						(2)						(16)						—						—
Consolidations			—						—						—						—						—						9						—						—
Deconsolidations			—						—						—						—						—						(9)						—						—
Fair value as of September 30, 2025			$	10					$	168					$	145					$	521					$	4					$	145					$	132					$	15
Change in unrealized gains (losses) related to financial instruments held as of September 30, 2025 included in:
Earnings																											$	—					$	11		(2)			$	33		(4)			$	10		(3)
OCI			$	—					$	20					$	12					$	(20)																							$	—

Roll Forward of Level 3 Assets (Liabilities) at Fair Value on a Recurring Basis

Nine Months 2025

			Credit Derivative Liability, net (5)						FG VIEs’ Liabilities (8)
			(in millions)
Fair value as of December 31, 2024			$	(29)					$	(164)
Total pre-tax realized and unrealized gains (losses) recorded in:
Net income (loss)			110			(6)			(9)			(2)
Other comprehensive income (loss)			—						1
Settlements			(107)						13
Fair value as of September 30, 2025			$	(26)					$	(159)
Change in unrealized gains (losses) related to financial instruments held as of September 30, 2025 included in:
Earnings			$	3		(6)			$	(8)		(2)
OCI									$	1

Roll Forward of Level 3 Assets (Liabilities) at Fair Value on a Recurring Basis

Nine Months 2024

			Fixed-Maturity Securities, Available-for-Sale																														Assets of CIVs
			Obligations of State and Political Subdivisions						RMBS						Asset- Backed Securities						Fixed-Maturity Securities, Trading						FG VIEs’ Assets						Equity Securities						Structured Products						Other (7)
			(in millions)
Fair value as of December 31, 2023			$	6					$	154					$	803					$	—					$	174					$	80					$	189					$	14
Total pre-tax realized and unrealized gains (losses) recorded in:
Net income (loss)			—						12			(1)			24			(1)			—						(1)			(2)			21			(4)			(10)			(4)			(12)			(3)
Other comprehensive income (loss)			2						5						5						—						1						—						—						1
Purchases			—						—						30						—						—						—						76						1
Sales			—						—						—						—						—						(5)						(20)						—
Settlements			(1)						(19)						(95)						(2)						(18)						—						—						—
Reclassifications (9)			—						—						—						8						—						—						(8)						—
Transfers into Level 3			—						—						20						—						—						3						10						—
Transfers out of Level 3			—						—						—						—						—						(2)						—						—
Fair value as of September 30, 2024			$	7					$	152					$	787					$	6					$	156					$	97					$	237					$	4
Change in unrealized gains (losses) related to financial instruments held as of September 30, 2024 included in:
Earnings																					$	—					$	(5)		(2)			$	21		(4)			$	(3)		(4)			$	(12)		(3)
OCI			$	2					$	5					$	3											$	1																	$	1

Roll Forward of Level 3 Assets (Liabilities) at Fair Value on a Recurring Basis

Nine Months 2024

			Credit Derivative Liability, net (5)						FG VIEs’ Liabilities (8)
			(in millions)
Fair value as of December 31, 2023			$	(50)					$	(554)
Total pre-tax realized and unrealized gains (losses) recorded in:
Net income (loss)			19			(6)			6			(2)
Other comprehensive income (loss)			—						(1)
Issuances			(2)						—
Settlements			(1)						157
Fair value as of September 30, 2024			$	(34)					$	(392)
Change in unrealized gains (losses) related to financial instruments held as of September 30, 2024 included in:
Earnings			$	9		(6)			$	—
OCI									$	(1)

____________________

(1)Included in “net realized investment gains (losses)” and “net investment income.”

(2)Reported in “fair value gains (losses) on FG VIEs.”

(3)Reported in “fair value gains (losses) on CCS,” “net investment income” and “other income (loss).”

(4)Reported in “fair value gains (losses) on CIVs.”

(5)Represents the net position of credit derivatives. Credit derivative assets (reported in “other assets”) and credit derivative liabilities (reported in “other liabilities”) are shown as either assets or liabilities in the condensed consolidated balance sheets.

(6)Reported in “fair value gains (losses) on credit derivatives.”

(7)Includes CCS and other invested assets.

(8)Includes FG VIEs’ liabilities with recourse and FG VIEs’ liabilities without recourse.

(9)Represents securities transferred from one of the CIVs to the investment portfolio due to the distribution of assets of that CIV.

(10)Reported in “fair value gains (losses) on trading securities.”

Fair Value, Liabilities Measured on Recurring Basis

The tables below present a roll forward of the Company’s Level 3 financial instruments carried at fair value on a recurring basis during third quarter 2025, third quarter 2024, nine months 2025 and nine months 2024.

Roll Forward of Level 3 Assets (Liabilities) at Fair Value on a Recurring Basis

Third Quarter 2025

			Fixed-Maturity Securities, Available-for-Sale
			Obligations of State and Political Subdivisions						Corporate						RMBS						Asset- Backed Securities						Fixed-Maturity Securities, Trading						FG VIEs’ Assets						Assets of CIVs, Equity Securities						Other (7)
			(in millions)
Fair value as of June 30, 2025			$	10					$	84					$	142					$	977					$	4					$	153					$	121					$	5
Total pre-tax realized and unrealized gains (losses) recorded in:
Net income (loss)			—						1			(1)			3			(1)			3			(1)			1			(10)			7			(2)			11			(4)			9			(3)
Other comprehensive income (loss)			—						10						6						(3)						—						—						—						1
Purchases			—						73						—						40						—						—						—						—
Sales			—						—						—						—						—						—						—						—
Settlements			—						—						(6)						(496)						(1)						(6)						—						—
Deconsolidations			—						—						—						—						—						(9)						—						—
Fair value as of September 30, 2025			$	10					$	168					$	145					$	521					$	4					$	145					$	132					$	15
Change in unrealized gains (losses) related to financial instruments held as of September 30, 2025 included in:
Earnings																											$	—					$	6		(2)			$	11		(4)			$	9		(3)
OCI			$	—					$	10					$	6					$	(2)																							$	1

Roll Forward of Level 3 Assets (Liabilities) at Fair Value on a Recurring Basis

Third Quarter 2025

			Credit Derivative Liability, net (5)						FG VIEs’ Liabilities (8)
			(in millions)
Fair value as of June 30, 2025			$	(29)					$	(161)
Total pre-tax realized and unrealized gains (losses) recorded in:
Net income (loss)			5			(6)			(4)			(2)
Other comprehensive income (loss)			—						1
Settlements			(2)						5
Fair value as of September 30, 2025			$	(26)					$	(159)
Change in unrealized gains (losses) related to financial instruments held as of September 30, 2025 included in:
Earnings			$	3		(6)			$	(4)		(2)
OCI									$	1

Roll Forward of Level 3 Assets (Liabilities) at Fair Value on a Recurring Basis

Third Quarter 2024

			Fixed-Maturity Securities, Available-for-Sale																														Assets of CIVs
			Obligations of State and Political Subdivisions						RMBS						Asset- Backed Securities						Fixed-Maturity Securities, Trading						FG VIEs’ Assets						Equity Securities						Structured Products						Other (7)
			(in millions)
Fair value as of June 30, 2024			$	7					$	150					$	795					$	—					$	160					$	93					$	225					$	6
Total pre-tax realized and unrealized gains (losses) recorded in:
Net income (loss)			—						5			(1)			7			(1)			—						2			(2)			9			(4)			(5)			(4)			(4)			(3)
Other comprehensive income (loss)			—						3						(3)						—						—						—						—						1
Purchases			—						—						19						—						—						—						25						1
Sales			—						—						—						—						—						(3)						—						—
Settlements			—						(6)						(31)						(2)						(6)						—						—						—
Reclassifications (9)			—						—						—						8						—						—						(8)						—
Transfers out of Level 3			—						—						—						—						—						(2)						—						—
Fair value as of September 30, 2024			$	7					$	152					$	787					$	6					$	156					$	97					$	237					$	4
Change in unrealized gains (losses) related to financial instruments held as of September 30, 2024 included in:
Earnings																					$	—					$	—					$	9		(4)			$	(1)		(4)			$	(4)		(3)
OCI			$	—					$	3					$	(3)																													$	(1)

Roll Forward of Level 3 Assets (Liabilities) at Fair Value on a Recurring Basis

Third Quarter 2024

			Credit Derivative Liability, net (5)						FG VIEs’ Liabilities (8)
			(in millions)
Fair value as of June 30, 2024			$	(34)					$	(393)
Total pre-tax realized and unrealized gains (losses) recorded in:
Net income (loss)			3			(6)			(3)			(2)
Other comprehensive income (loss)			—						(1)
Issuances			(2)						—
Settlements			(1)						5
Fair value as of September 30, 2024			$	(34)					$	(392)
Change in unrealized gains (losses) related to financial instruments held as of September 30, 2024 included in:
Earnings			$	1		(6)			$	(4)		(2)
OCI									$	(1)

Roll Forward of Level 3 Assets (Liabilities) at Fair Value on a Recurring Basis

Nine Months 2025

			Fixed-Maturity Securities, Available-for-Sale
			Obligations of State and Political Subdivisions						Corporate						RMBS						Asset- Backed Securities						Fixed-Maturity Securities, Trading						FG VIEs’ Assets						Assets of CIVs, Equity Securities						Other (7)
			(in millions)
Fair value as of December 31, 2024			$	10					$	—					$	145					$	1,031					$	5					$	147					$	99					$	5
Total pre-tax realized and unrealized gains (losses) recorded in:
Net income (loss)			2			(1)			1			(1)			7			(1)			21			(1)			1			(10)			14			(2)			33			(4)			10			(3)
Other comprehensive income (loss)			—						20						12						8						—						—						—						—
Purchases			—						147						—						40						—						—						—						—
Sales			—						—						—						(12)						—						—						—						—
Settlements			(2)						—						(19)						(567)						(2)						(16)						—						—
Consolidations			—						—						—						—						—						9						—						—
Deconsolidations			—						—						—						—						—						(9)						—						—
Fair value as of September 30, 2025			$	10					$	168					$	145					$	521					$	4					$	145					$	132					$	15
Change in unrealized gains (losses) related to financial instruments held as of September 30, 2025 included in:
Earnings																											$	—					$	11		(2)			$	33		(4)			$	10		(3)
OCI			$	—					$	20					$	12					$	(20)																							$	—

Roll Forward of Level 3 Assets (Liabilities) at Fair Value on a Recurring Basis

Nine Months 2025

			Credit Derivative Liability, net (5)						FG VIEs’ Liabilities (8)
			(in millions)
Fair value as of December 31, 2024			$	(29)					$	(164)
Total pre-tax realized and unrealized gains (losses) recorded in:
Net income (loss)			110			(6)			(9)			(2)
Other comprehensive income (loss)			—						1
Settlements			(107)						13
Fair value as of September 30, 2025			$	(26)					$	(159)
Change in unrealized gains (losses) related to financial instruments held as of September 30, 2025 included in:
Earnings			$	3		(6)			$	(8)		(2)
OCI									$	1

Roll Forward of Level 3 Assets (Liabilities) at Fair Value on a Recurring Basis

Nine Months 2024

			Fixed-Maturity Securities, Available-for-Sale																														Assets of CIVs
			Obligations of State and Political Subdivisions						RMBS						Asset- Backed Securities						Fixed-Maturity Securities, Trading						FG VIEs’ Assets						Equity Securities						Structured Products						Other (7)
			(in millions)
Fair value as of December 31, 2023			$	6					$	154					$	803					$	—					$	174					$	80					$	189					$	14
Total pre-tax realized and unrealized gains (losses) recorded in:
Net income (loss)			—						12			(1)			24			(1)			—						(1)			(2)			21			(4)			(10)			(4)			(12)			(3)
Other comprehensive income (loss)			2						5						5						—						1						—						—						1
Purchases			—						—						30						—						—						—						76						1
Sales			—						—						—						—						—						(5)						(20)						—
Settlements			(1)						(19)						(95)						(2)						(18)						—						—						—
Reclassifications (9)			—						—						—						8						—						—						(8)						—
Transfers into Level 3			—						—						20						—						—						3						10						—
Transfers out of Level 3			—						—						—						—						—						(2)						—						—
Fair value as of September 30, 2024			$	7					$	152					$	787					$	6					$	156					$	97					$	237					$	4
Change in unrealized gains (losses) related to financial instruments held as of September 30, 2024 included in:
Earnings																					$	—					$	(5)		(2)			$	21		(4)			$	(3)		(4)			$	(12)		(3)
OCI			$	2					$	5					$	3											$	1																	$	1

Roll Forward of Level 3 Assets (Liabilities) at Fair Value on a Recurring Basis

Nine Months 2024

			Credit Derivative Liability, net (5)						FG VIEs’ Liabilities (8)
			(in millions)
Fair value as of December 31, 2023			$	(50)					$	(554)
Total pre-tax realized and unrealized gains (losses) recorded in:
Net income (loss)			19			(6)			6			(2)
Other comprehensive income (loss)			—						(1)
Issuances			(2)						—
Settlements			(1)						157
Fair value as of September 30, 2024			$	(34)					$	(392)
Change in unrealized gains (losses) related to financial instruments held as of September 30, 2024 included in:
Earnings			$	9		(6)			$	—
OCI									$	(1)

____________________

(1)Included in “net realized investment gains (losses)” and “net investment income.”

(2)Reported in “fair value gains (losses) on FG VIEs.”

(3)Reported in “fair value gains (losses) on CCS,” “net investment income” and “other income (loss).”

(4)Reported in “fair value gains (losses) on CIVs.”

(5)Represents the net position of credit derivatives. Credit derivative assets (reported in “other assets”) and credit derivative liabilities (reported in “other liabilities”) are shown as either assets or liabilities in the condensed consolidated balance sheets.

(6)Reported in “fair value gains (losses) on credit derivatives.”

(7)Includes CCS and other invested assets.

(8)Includes FG VIEs’ liabilities with recourse and FG VIEs’ liabilities without recourse.

(9)Represents securities transferred from one of the CIVs to the investment portfolio due to the distribution of assets of that CIV.

(10)Reported in “fair value gains (losses) on trading securities.”

Schedule of Quantitative Information About Level 3 Liabilities, Fair Value Measurements

Quantitative Information About Level 3 Fair Value Inputs

As of September 30, 2025

Financial Instrument Description						Fair Value Assets (Liabilities) (in millions)						Significant Unobservable Inputs						Range												Weighted Average (4)
Investments (2):
Fixed-maturity securities, available-for-sale (1):
Obligations of state and political subdivisions						$	10					Yield						5.3		%	-			15.0%						6.7%
Corporate						168						Yield						5.3		%	-			8.3%						5.4%
RMBS						145						Conditional prepayment rate (CPR)						0.0		%	-			17.9%						3.9%
												CDR						1.2		%	-			18.6%						5.4%
												Loss severity						50.0		%	-			125.0%						79.9%
												Yield						7.0		%	-			10.0%						8.4%
Asset-backed securities:
CLOs						472						Discount margin						1.0		%	-			2.9%						1.8%
												Yield						10.2		%	-			23.5%						17.8%
Others						49						Yield						9.7%
Fixed-maturity securities, trading (1)						4						Yield						4.2		%	-			7.7%						6.0%
FG VIEs’ assets (1)						145						CPR						1.1		%	-			28.1%						5.1%
												CDR						1.2		%	-			41.0%						10.5%
												Loss severity						45.0		%	-			100.0%						83.5%
												Yield						6.3		%	-			9.9%						8.7%
Assets of CIVs - equity securities (3)						132						Discount rate						23.4%
												Market multiple-price to book						1.00x
												Market multiple-price to earnings						5.75x
												Terminal growth rate						4.0%
												Exit multiple-price to book						1.00x
												Exit multiple-price to earnings						5.50x
Other assets (1)						12						Implied Yield						6.5		%	-			7.0%						6.7%
												Term (years)						10 years
Credit derivative liabilities, net (1)						(26)						Hedge cost (in basis points) (bps)						11.8			-			27.9						15.4
												Bank profit (in bps)						55.0			-			257.7						130.4
												Internal floor (in bps)						10.0
												Internal credit rating						AAA			-			CCC						A
												Discount rates of future expected premium cash flows						3.2		%	-			4.3%						4.1%
FG VIEs’ liabilities (1)						(159)						CPR						1.1		%	-			28.1%						5.1%
												CDR						1.2		%	-			41.0%						10.5%
												Loss severity						45.0		%	-			100.0%						83.5%
												Yield						5.2		%	-			9.9%						6.5%

___________________

(1)    Discounted cash flows are used as the primary valuation technique.

(2)    This amount excludes several investments reported in “other invested assets” with a fair value of $4 million.

(3)    The primary valuation technique uses the income and/or market approach.

(4)    Weighted average is calculated as a percentage of current par outstanding for all categories except for assets of CIVs and fixed-maturity securities, trading, for which it is calculated as a percentage of fair value.

Quantitative Information About Level 3 Fair Value Inputs

As of December 31, 2024

Financial Instrument Description						Fair Value Assets (Liabilities) (in millions)						Significant Unobservable Inputs						Range												Weighted Average (4)
Investments (2):
Fixed-maturity securities, available-for-sale (1):
Obligations of state and political subdivisions						$	10					Yield						5.5		%	-			22.0%						7.5%
RMBS						145						CPR						1.8		%	-			17.0%						2.8%
												CDR						1.8		%	-			18.7%						5.4%
												Loss severity						50.0		%	-			125.0%						79.9%
												Yield						7.7		%	-			10.8%						9.1%
Asset-backed securities:
CLOs						611						Discount margin						0.8		%	-			2.9%						1.9%
												Yield						12.5		%	-			22.5%						17.9%
Others						420						Yield						6.4		%	-			9.1%						6.7%
Fixed-maturity securities, trading (1)						5						Yield						19.8		%	-			169.5%						163.8%
FG VIEs’ assets (1)						147						CPR						2.2		%	-			25.0%						5.7%
												CDR						1.3		%	-			41.0%						10.7%
												Loss severity						45.0		%	-			100.0%						83.2%
												Yield						6.8		%	-			10.8%						9.3%
Assets of CIVs - equity securities (3)						99						Discount rate						24.3%
												Market multiple-price to book						1.05x
												Market multiple-price to earnings						5.25x
												Terminal growth rate						4.0%
												Exit multiple-price to book						1.05x
												Exit multiple-price to earnings						5.50x
Other assets (1)						2						Implied Yield						6.5		%	-			7.0%						6.8%
												Term (years)						10 years
Credit derivative liabilities, net (1)						(29)						Hedge cost (in bps)						12.8			-			30.1						16.8
												Bank profit (in bps)						73.2			-			275.9						139.3
												Internal floor (in bps)						10.0			-			85.5						29.7
												Internal credit rating						AAA			-			CCC						A
												Discount rates of future expected premium cash flows						3.9		%				4.4%						4.3%
FG VIEs’ liabilities (1)						(164)						CPR						2.2		%	-			25.0%						5.7%
												CDR						1.3		%	-			41.0%						10.7%
												Loss severity						45.0		%	-			100.0%						83.2%
												Yield						5.5		%	-			10.8%						7.0%

____________________

(1)    Discounted cash flows are used as the primary valuation technique.

(2)    This amount excludes several investments reported in “other invested assets” with a fair value of $4 million.

(3)    The primary valuation technique uses the income and/or market approach.

(4)    Weighted average is calculated as a percentage of current par outstanding for all categories except for assets of CIVs, for which it is calculated as a percentage of fair value.

Schedule of Financial Instruments Not Carried at Fair Value

The carrying amount and estimated fair value of the Company’s financial instruments not carried at fair value are presented in the following table.

Fair Value of Financial Instruments Not Carried at Fair Value

			As of September 30, 2025												As of December 31, 2024
			Carrying Amount						Estimated Fair Value						Carrying Amount						Estimated Fair Value
			(in millions)
Assets (liabilities):
Other assets (including other invested assets)			$	87					$	88					$	115					$	116
Financial guaranty insurance contracts (1)			(1,926)						(846)						(2,029)						(1,136)
Long-term debt			(1,702)						(1,622)						(1,699)						(1,579)
Other liabilities			(40)						(40)						(16)						(16)

____________________

(1)    Carrying amount includes the assets and liabilities related to financial guaranty insurance contract premiums, losses and salvage and subrogation and other recoverables net of reinsurance.

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