Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2024

Fair Value Hierarchy for Assets Measured at Fair Value on a Recurring Basis

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 1		Level 2		Level 3		Total
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 government	227		—		—		227
Foreign government	—		31		—		31


Subtotal	227		15,644		—		15,871
Common equities	11,200		—		—		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 government	200		—		—		200
Foreign government	—		25		—		25

Subtotal	200		13,591		—		13,791
Common equities	10,641		—		—		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

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block]

This table summarizes the book value and principal amounts of our long-term debt:


(Dollars in millions)			Book value				Principal amount
Interest rate	Year of issue		September 30,		December 31,		September 30,		December 31,
			2024		2023		2024		2023
6.900%	1998	Senior debentures, due 2028	$	27	$	27	$	28	$	28
6.920%	2005	Senior debentures, due 2028	391		391		391		391
6.125%	2004	Senior notes, due 2034	372		372		374		374
Total			$	790	$	790	$	793	$	793

Fair Values of Deferred Annuities, Structured Settlements and Other Items

The following table shows fair values of our note payable and long-term debt:


(Dollars in millions)	Level 1		Level 2		Level 3		Total
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

Fair Value of Life Policy Loans

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 1		Level 2		Level 3		Total
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