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Fair Value Measurements
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
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. Financial instruments reported at fair value in our consolidated financial statements are categorized based upon the following characteristics or inputs to the valuation techniques:

•Level 1 – Financial assets and liabilities for which inputs are observable and are obtained from reliable quoted prices for identical assets or liabilities in active markets. This is the most reliable fair value measurement and includes, for example, active exchange-traded equity securities.
•Level 2 – Financial assets and liabilities for which values are based on quoted prices in markets that are not active or for which values are based on similar assets and liabilities that are actively traded. This also includes pricing models for which the inputs are corroborated by market data.
The technique used for the Level 2 fixed-maturity securities is the application of market-based modeling. The inputs used for all classes of fixed-maturity securities listed in the table below include relevant market information by asset class, trade activity of like securities, marketplace quotes, benchmark yields, spreads off benchmark yields, interest rates, U.S. Treasury or swap curves, yield to maturity and economic events. Specific to asset-backed securities, key inputs also include prepayment and default projections based on performance of the underlying collateral and current market data. Level 2 fixed-maturity securities are priced by a nationally recognized pricing vendor.
The Level 2 nonredeemable preferred equities technique used is the application of market-based modeling. The inputs used, similar to those used by the pricing vendor for our fixed-maturity securities, include relevant market information, trade activity of like securities, yield to maturity, corporate action notices and economic events. Level 2 nonredeemable preferred equities are priced by a nationally recognized pricing vendor.
•Level 3 – Financial assets and liabilities for which values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Level 3 inputs include the following:
◦Quotes from brokers or other external sources that are not considered binding;
◦Quotes from brokers or other external sources where it cannot be determined that market participants would in fact transact for the asset or liability at the quoted price; or
◦Quotes from brokers or other external sources where the inputs are not deemed observable.
 
The following tables illustrate the fair value hierarchy for those assets measured at fair value on a recurring basis at December 31, 2024 and 2023. We do not have any liabilities carried at fair value.
(Dollars in millions)Level 1
Level 3
At December 31, 2024Level 2Total
Fixed maturities, available for sale:    
Corporate $— $8,380 $— $8,380 
States, municipalities and political subdivisions— 4,721 — 4,721 
Government-sponsored enterprises— 2,274 — 2,274 
Asset-backed — 551 — 551 
United States government226 — — 226 
Foreign government— 30 — 30 
Subtotal226 15,956 — 16,182 
Common equities10,836 — — 10,836 
Nonredeemable preferred equities— 349 — 349 
Separate accounts taxable fixed maturities — 876 — 876 
Short-term investments298 — — 298 
Top Hat savings plan mutual funds and common
  equity (included in Other assets)		87 — — 87 
Total$11,447 $17,181 $— $28,628 
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 
Short-term investments— — — — 
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 $983 million and $907 million at December 31, 2024 and 2023, respectively. Level 3 assets reported at fair value in our consolidated financial statements are not material, and therefore no further disclosures are provided.
Fair Value Disclosure 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 consolidated financial statements.
 
The following table shows fair values of our note payable and long-term debt:
(Dollars in millions)Level 1Level 2Level 3Total
At December 31, 2024
Note payable$— $25 $— $25 
6.900% senior debentures, due 2028
— 29 — 29 
6.920% senior debentures, due 2028
— 416 — 416 
6.125% senior notes, due 2034
— 390 — 390 
Total$— $860 $— $860 
At December 31, 2023
Note payable$— $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 the note payable was determined based upon the outstanding balance at December 31, 2024 and 2023, because it is short term and tied to a variable interest rate. Fair value of the long-term debt was determined under the fair value measurements and disclosure accounting rules based on market pricing of similar debt instruments that are actively traded. We determine fair value for our debt the same way that we value corporate fixed maturities in our investment portfolio. Fair value can vary with macroeconomic conditions. Regardless of the fluctuations in fair value, the outstanding principal amount of our long-term debt was $793 million at December 31, 2024 and 2023. None of the long-term debt is encumbered by rating triggers. The note payable and long-term debt were classified as Level 2 as an active market does not exist, but fair value is determined based on observable inputs.

The following table shows the fair value of our life policy loans, included in other invested assets:
(Dollars in millions)Level 1Level 2Level 3Total
At December 31, 2024
Life policy loans$— $— $41 $41 
At December 31, 2023
Life policy loans$— $— $39 $39 
 
Outstanding principal and interest for these life policy loans totaled $36 million and $33 million at December 31, 2024 and 2023, respectively. To determine the fair value, we make the following significant assumptions: (1) the discount rates used to calculate the present value of expected payments are the risk-free spot rates, as nonperformance risk is minimal; and (2) the loan repayment rate by which policyholders pay off their loan balances is in line with past experience.
 
The following table shows fair value of our deferred annuities and structured settlements included in life policy and investment contract reserves:
(Dollars in millions)Level 1
Level 2		Level 3Total
At December 31, 2024
Deferred annuities$— $— $561 $561 
Structured settlements— 127 — 127 
Total$— $127 $561 $688 
At December 31, 2023
Deferred annuities$— $— $603 $603 
Structured settlements— 141 — 141 
Total$— $141 $603 $744 
 
Recorded reserves for the deferred annuities were $595 million and $656 million at December 31, 2024 and 2023, respectively. Recorded reserves for the structured settlements were $116 million and $123 million at December 31, 2024 and 2023, respectively.
 
Fair values for deferred annuities were calculated based upon internally developed models because active markets and observable inputs do not exist. To determine the fair value, we made the following significant assumptions: (1) the discount rates used to calculate the present value of expected payments are the risk-free spot rates plus an A3 rated bond spread for financial issuers at December 31, 2024 and 2023, to account for nonperformance risk; (2) the rate of interest credited to policyholders is the portfolio net earned interest rate less a spread for expenses and profit; and (3) additional lapses occur when the credited interest rate is exceeded by an assumed competitor credited rate, which is a function of the risk-free rate of the economic scenario being modeled.
 
Fair values for structured settlements were calculated based on internally developed models which assume the discount rates used to calculate the present value of expected payments are the risk-free spot rates plus an A3 rated bond spread for financial issuers at December 31, 2024 and 2023, to account for nonperformance risk. The structured settlements were classified as Level 2, as an active market does not exist, but fair value is based on observable inputs.