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Fair Value Measurements | 9 Months Ended
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Sep. 30, 2025
Fair Value Disclosures [Abstract] |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The Company’s estimates of fair value for financial assets and financial liabilities are based on the framework established in the fair value accounting guidance. The framework is based on the inputs used in valuation, gives the highest priority to quoted prices in active markets and requires that observable inputs be used in the valuations when available. The disclosure of fair value estimates in the fair value accounting guidance hierarchy is based on whether the significant inputs into the valuation are observable. In determining the level of the hierarchy in which the estimate is disclosed, the highest priority is given to unadjusted quoted prices in active markets and the lowest priority to unobservable inputs that reflect the Company’s significant market assumptions. The level in the fair value hierarchy within which the fair value measurement is reported is based on the lowest level input that is significant to the measurement in its entirety. The three levels of the hierarchy are as follows: •Level 1 - Unadjusted quoted market prices for identical assets or liabilities in active markets that the Company has the ability to access. •Level 2 - Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; or valuations based on models where the significant inputs are observable (e.g., interest rates, yield curves, prepayment speeds, default rates, loss severities, etc.) or can be corroborated by observable market data. •Level 3 - Valuations based on models where significant inputs are not observable. The unobservable inputs reflect the Company’s own assumptions about the inputs that market participants would use. Valuation of Investments Reported at Fair Value in Financial Statements The Company utilized a pricing service to estimate fair value measurements for approximately 99% of its fixed maturities as of both September 30, 2025 and December 31, 2024. While the vast majority of the Company’s fixed maturities are included in Level 2, the Company holds a number of corporate bonds which are not valued by the pricing service and estimates the fair value of these bonds using either another internal pricing matrix, a present value income approach or a broker quote (collectively, the other methodologies). The other methodologies include some unobservable inputs that are significant to the valuation. Due to the limited amount of observable market information available in the estimation of fair value, the Company includes the fair value estimates for bonds that are valued using the other methodologies in Level 3. For certain investments in non-public common and preferred equity securities, the fair value estimate is determined either internally or by an external fund manager based on the impact of recent observable transactions on the investment, recent filings, operating results, balance sheet stability, growth and other business and market sector fundamentals. Due to the significant unobservable inputs in these valuations, the Company included the fair value estimate of $31 million and $37 million for these investments as of September 30, 2025 and December 31, 2024, respectively, in the amounts disclosed in Level 3. For more information regarding the valuation of the Company’s fixed maturities, equity securities and other investments, see note 4 of the notes to the consolidated financial statements in the Company’s 2024 Annual Report. Fair Value Hierarchy The following tables present the level within the fair value hierarchy at which the Company’s financial assets and financial liabilities are measured on a recurring basis.
(as of September 30, 2025, in millions) |  | Total |  | Level 1 |  | Level 2 |  | Level 3
Invested assets: |  |  |  |  |  |  |  |
Fixed maturities |  |  |  |  |  |  |  |
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities |  | $ | 4,013 |  |  | $ | 4,013 |  |  | $ | — |  |  | $ | — |
Obligations of U.S. states, municipalities and political subdivisions |  | 30,304 |  |  | — |  |  | 30,304 |  |  | — |
Debt securities issued by foreign governments |  | 988 |  |  | — |  |  | 988 |  |  | — |
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities |  | 13,361 |  |  | — |  |  | 13,358 |  |  | 3 |
Corporate and all other bonds |  | 42,447 |  |  | 13 |  |  | 42,098 |  |  | 336 |
Total fixed maturities |  | 91,113 |  |  | 4,026 |  |  | 86,748 |  |  | 339 |
Equity securities |  |  |  |  |  |  |  |
Common stock |  | 649 |  |  | 642 |  |  | — |  |  | 7 |
Non-redeemable preferred stock |  | 43 |  |  | 16 |  |  | 3 |  |  | 24 |
Total equity securities |  | 692 |  |  | 658 |  |  | 3 |  |  | 31 |
Other investments |  | 22 |  |  | 22 |  |  | — |  |  | — |
Total |  | $ | 91,827 |  |  | $ | 4,706 |  |  | $ | 86,751 |  |  | $ | 370 |
(as of December 31, 2024, in millions) |  | Total |  | Level 1 |  | Level 2 |  | Level 3
Invested assets: |  |  |  |  |  |  |  |
Fixed maturities |  |  |  |  |  |  |  |
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities |  | $ | 5,570 |  |  | $ | 5,570 |  |  | $ | — |  |  | $ | — |
Obligations of U.S. states, municipalities and political subdivisions |  | 27,185 |  |  | — |  |  | 27,185 |  |  | — |
Debt securities issued by foreign governments |  | 909 |  |  | — |  |  | 909 |  |  | — |
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities |  | 12,605 |  |  | — |  |  | 12,602 |  |  | 3 |
Corporate and all other bonds |  | 37,397 |  |  | — |  |  | 37,151 |  |  | 246 |
Total fixed maturities |  | 83,666 |  |  | 5,570 |  |  | 77,847 |  |  | 249 |
Equity securities |  |  |  |  |  |  |  |
Common stock |  | 639 |  |  | 631 |  |  | — |  |  | 8 |
Non-redeemable preferred stock |  | 48 |  |  | 16 |  |  | 3 |  |  | 29 |
Total equity securities |  | 687 |  |  | 647 |  |  | 3 |  |  | 37 |
Other investments |  | 20 |  |  | 20 |  |  | — |  |  | — |
Total |  | $ | 84,373 |  |  | $ | 6,237 |  |  | $ | 77,850 |  |  | $ | 286 |
A corporate and all other bonds investment totaling $133 million that had been valued using observable market inputs as of December 31, 2024 and disclosed in Level 2, was valued using a broker quote as of September 30, 2025 and transferred into Level 3 during the nine months ended September 30, 2025. There was no other significant activity in Level 3 of the hierarchy during the nine months ended September 30, 2025. Financial Instruments Disclosed, But Not Carried, At Fair Value The following tables present the carrying value and fair value of the Company’s financial assets and financial liabilities disclosed, but not carried, at fair value, and the level within the fair value hierarchy at which such assets and liabilities are categorized.
(as of September 30, 2025, in millions) |  | Carrying Value |  | Fair Value |  | Level 1 |  | Level 2 |  | Level 3
Financial assets |  |  |  |  |  |  |  |  |  |
Short-term securities |  | $ | 6,798 |  |  | $ | 6,798 |  |  | $ | 1,139 |  |  | $ | 5,612 |  |  | $ | 47 |
Financial liabilities |  |  |  |  |  |  |  |  |  |
Debt |  | $ | 9,167 |  |  | $ | 8,597 |  |  | $ | — |  |  | $ | 8,597 |  |  | $ | — |
Commercial paper |  | 100 |  |  | 100 |  |  | — |  |  | 100 |  |  | — |
(as of December 31, 2024, in millions) |  | Carrying Value |  | Fair Value |  | Level 1 |  | Level 2 |  | Level 3
Financial assets |  |  |  |  |  |  |  |  |  |
Short-term securities |  | $ | 4,766 |  |  | $ | 4,766 |  |  | $ | 1,933 |  |  | $ | 2,788 |  |  | $ | 45 |
Financial liabilities |  |  |  |  |  |  |  |  |  |
Debt |  | $ | 7,933 |  |  | $ | 7,095 |  |  | $ | — |  |  | $ | 7,095 |  |  | $ | — |
Commercial paper |  | 100 |  |  | 100 |  |  | — |  |  | 100 |  |  | — |
The Company had no material assets or liabilities that were measured at fair value on a non-recurring basis during the nine months ended September 30, 2025 or the year ended December 31, 2024.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 3: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
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