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Fair Value Measurements
 9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
In accordance with accounting guidance for fair value measurements and disclosures, we categorized our financial instruments, based on the priority of the observable and market-based data for the valuation technique used, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices with readily available independent data in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable market inputs (Level 3). When various inputs for measurement fall within different levels of the fair value hierarchy, the lowest observable input that has a significant impact on fair value measurement is used. Our valuation techniques have not changed from those used at December 31, 2023, and ultimately management determines fair value. See our 2023 Annual Report on Form 10-K, Item 8, Note 3, Fair Value Measurements, Page 139, for information on characteristics and valuation techniques used in determining fair value.

Fair Value Disclosures for Assets
The following tables illustrate the fair value hierarchy for those assets measured at fair value on a recurring basis at September 30, 2024, and December 31, 2023. We do not have any liabilities carried at fair value.
(Dollars in millions)Level 1Level 2Level 3Total
At September 30, 2024
Fixed maturities, available for sale:    
Corporate $— $8,339 $— $8,339 
States, municipalities and political subdivisions— 4,809 — 4,809 
Government-sponsored enterprises— 2,151 — 2,151 
Asset-backed — 314 — 314 
United States government227 — — 227 
Foreign government— 31 — 31 
Subtotal227 15,644 — 15,871 
Common equities11,200 — — 11,200 
Nonredeemable preferred equities— 370 — 370 
Separate accounts taxable fixed maturities— 894 — 894 
Top Hat savings plan mutual funds and common
   equity (included in Other assets)		84 — — 84 
Total$11,511 $16,908 $— $28,419 
At December 31, 2023
Fixed maturities, available for sale:    
Corporate $— $7,452 $— $7,452 
States, municipalities and political subdivisions— 4,703 — 4,703 
Government-sponsored enterprises— 1,224 — 1,224 
Asset-backed — 187 — 187 
United States government200 — — 200 
Foreign government— 25 — 25 
Subtotal200 13,591 — 13,791 
Common equities10,641 — — 10,641 
Nonredeemable preferred equities— 348 — 348 
Separate accounts taxable fixed maturities — 854 — 854 
Top Hat savings plan mutual funds and common
  equity (included in Other assets)		67 — — 67 
Total$10,908 $14,793 $— $25,701 
 
We also held Level 1 cash and cash equivalents of $1.752 billion and $907 million at September 30, 2024, and December 31, 2023, respectively.
Fair Value Disclosures for Assets and Liabilities Not Carried at Fair Value 
The disclosures below are presented to provide information about the effects of current market conditions on financial instruments that are not reported at fair value in our condensed consolidated financial statements.
 
This table summarizes the book value and principal amounts of our long-term debt:
(Dollars in millions) Book valuePrincipal amount
Interest
rate		Year of 
issue		 September 30,December 31,September 30,December 31,
 2024202320242023
6.900%1998Senior debentures, due 2028$27 $27 $28 $28 
6.920%2005Senior debentures, due 2028391 391 391 391 
6.125%2004Senior notes, due 2034372 372 374 374 
Total $790 $790 $793 $793 
 
The following table shows fair values of our note payable and long-term debt:
(Dollars in millions)Level 1Level 2Level 3Total
At September 30, 2024
Note payable$— $25 $— $25 
6.900% senior debentures, due 2028
— 30 — 30 
6.920% senior debentures, due 2028
— 427 — 427 
6.125% senior notes, due 2034
— 407 — 407 
Total$— $889 $— $889 
At December 31, 2023
Note payable$— $25 $— $25 
6.900% senior debentures, due 2028
— 29 — 29 
6.920% senior debentures, due 2028
— 420 — 420 
6.125% senior notes, due 2034
— 394 — 394 
Total$— $868 $— $868 
 
The following table shows the fair value of our life policy loans included in other invested assets and the fair values of our deferred annuities and structured settlements included in life policy and investment contract reserves:
(Dollars in millions)Level 1Level 2Level 3Total
At September 30, 2024
Life policy loans$— $— $41 $41 
Deferred annuities$— $— $576 $576 
Structured settlements— 136 — 136 
Total$— $136 $576 $712 
At December 31, 2023
Life policy loans$— $— $39 $39 
Deferred annuities$— $— $603 $603 
Structured settlements— 141 — 141 
Total$— $141 $603 $744 
 
Outstanding principal and interest for these life policy loans totaled $35 million and $33 million at September 30, 2024, and December 31, 2023, respectively.
 
Recorded reserves for the deferred annuities were $605 million and $656 million at September 30, 2024, and December 31, 2023, respectively. Recorded reserves for the structured settlements were $118 million and $123 million at September 30, 2024, and December 31, 2023, respectively.