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Fair Value Measurements | 6 Months Ended
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Jun. 30, 2025
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, 2024, and ultimately management determines fair value. See our 2024 Annual Report on Form 10-K, Item 8, Note 3, Fair Value Measurements, Page 138, 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 June 30, 2025, and December 31, 2024. We do not have any liabilities carried at fair value.
(Dollars in millions) |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
At June 30, 2025 |  |  |  |
Fixed maturities, available for sale: |  |  |  |  |  |  |  |
Corporate |  | $ | — |  |  | $ | 8,987 |  |  | $ | — |  |  | $ | 8,987 |
States, municipalities and political subdivisions |  | — |  |  | 4,708 |  |  | — |  |  | 4,708 |
Government-sponsored enterprises |  | — |  |  | 2,447 |  |  | — |  |  | 2,447 |
Asset-backed |  | — |  |  | 732 |  |  | — |  |  | 732 |
United States government |  | 183 |  |  | — |  |  | — |  |  | 183 |
Foreign government |  | — |  |  | 20 |  |  | — |  |  | 20 |
Subtotal |  | 183 |  |  | 16,894 |  |  | — |  |  | 17,077 |
Common equities |  | 11,309 |  |  | — |  |  | — |  |  | 11,309 |
Nonredeemable preferred equities |  | — |  |  | 340 |  |  | — |  |  | 340 |
Separate accounts taxable fixed maturities |  | 19 |  |  | 902 |  |  | — |  |  | 921 |
Short-term investments |  | 100 |  |  | — |  |  | — |  |  | 100 |
Top Hat savings plan mutual funds and common equity (included in Other assets) |  | 94 |  |  | — |  |  | — |  |  | 94 |
Total |  | $ | 11,705 |  |  | $ | 18,136 |  |  | $ | — |  |  | $ | 29,841 |
At December 31, 2024 |  |  |  |  |  |  |  |
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 government |  | 226 |  |  | — |  |  | — |  |  | 226 |
Foreign government |  | — |  |  | 30 |  |  | — |  |  | 30 |
Subtotal |  | 226 |  |  | 15,956 |  |  | — |  |  | 16,182 |
Common equities |  | 10,836 |  |  | — |  |  | — |  |  | 10,836 |
Nonredeemable preferred equities |  | — |  |  | 349 |  |  | — |  |  | 349 |
Separate accounts taxable fixed maturities |  | — |  |  | 876 |  |  | — |  |  | 876 |
Short-term investments |  | 298 |  |  | — |  |  | — |  |  | 298 |
Top Hat savings plan mutual funds and common equity (included in Other assets) |  | 87 |  |  | — |  |  | — |  |  | 87 |
Total |  | $ | 11,447 |  |  | $ | 17,181 |  |  | $ | — |  |  | $ | 28,628 |
We also held Level 1 cash and cash equivalents of $995 million and $983 million at June 30, 2025, and December 31, 2024, 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 value |  | Principal amount
Interest rate |  | Year of issue |  |  |  | June 30, |  | December 31, |  | June 30, |  | December 31,
|  |  |  | 2025 |  | 2024 |  | 2025 |  | 2024
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 |
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 June 30, 2025 |  |  |  |
Note payable |  | $ | — |  |  | $ | 25 |  |  | $ | — |  |  | $ | 25 |
6.900% senior debentures, due 2028 |  | — |  |  | 29 |  |  | — |  |  | 29 |
6.920% senior debentures, due 2028 |  | — |  |  | 421 |  |  | — |  |  | 421 |
6.125% senior notes, due 2034 |  | — |  |  | 399 |  |  | — |  |  | 399 |
Total |  | $ | — |  |  | $ | 874 |  |  | $ | — |  |  | $ | 874 |
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 |
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 June 30, 2025 |  |  |  |
Life policy loans |  | $ | — |  |  | $ | — |  |  | $ | 42 |  |  | $ | 42 |
Deferred annuities |  | $ | — |  |  | $ | — |  |  | $ | 549 |  |  | $ | 549 |
Structured settlements |  | — |  |  | 125 |  |  | — |  |  | 125 |
Total |  | $ | — |  |  | $ | 125 |  |  | $ | 549 |  |  | $ | 674 |
At December 31, 2024 |  |  |  |  |  |  |  |
Life policy loans |  | $ | — |  |  | $ | — |  |  | $ | 41 |  |  | $ | 41 |
Deferred annuities |  | $ | — |  |  | $ | — |  |  | $ | 561 |  |  | $ | 561 |
Structured settlements |  | — |  |  | 127 |  |  | — |  |  | 127 |
Total |  | $ | — |  |  | $ | 127 |  |  | $ | 561 |  |  | $ | 688 |
Outstanding principal and interest for these life policy loans totaled $36 million at both June 30, 2025, and December 31, 2024. Recorded reserves for the deferred annuities were $575 million and $595 million at June 30, 2025, and December 31, 2024, respectively. Recorded reserves for the structured settlements were $114 million and $116 million at June 30, 2025, and December 31, 2024, respectively.

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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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