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Fair Value Measurements
 9 Months Ended
Sep. 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 September 30, 2025, and December 31, 2024. We do not have any liabilities carried at fair value.
(Dollars in millions)Level 1Level 2Level 3Total
At September 30, 2025
Fixed maturities, available for sale:    
Corporate $— $9,363 $— $9,363 
States, municipalities and political subdivisions— 4,846 — 4,846 
Government-sponsored enterprises— 2,346 — 2,346 
Asset-backed — 778 — 778 
United States government274 — — 274 
Foreign government— 23 — 23 
Subtotal274 17,356 — 17,630 
Common equities12,209 — — 12,209 
Nonredeemable preferred equities— 338 — 338 
Separate accounts taxable fixed maturities35 877 — 912 
Short-term investments149 — — 149 
Top Hat savings plan mutual funds and common
   equity (included in Other assets)		100 — — 100 
Total$12,767 $18,571 $— $31,338 
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 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 
 
We also held Level 1 cash and cash equivalents of $1.460 billion and $983 million at September 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 valuePrincipal amount
Interest
rate		Year of 
issue		 September 30,December 31,September 30,December 31,
 2025202420252024
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, 2025
Note payable$— $25 $— $25 
6.900% senior debentures, due 2028
— 29 — 29 
6.920% senior debentures, due 2028
— 419 — 419 
6.125% senior notes, due 2034
— 404 — 404 
Total$— $877 $— $877 
At December 31, 2024
Note payable$— $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 1Level 2Level 3Total
At September 30, 2025
Life policy loans$— $— $42 $42 
Deferred annuities$— $— $541 $541 
Structured settlements— 125 — 125 
Total$— $125 $541 $666 
At December 31, 2024
Life policy loans$— $— $41 $41 
Deferred annuities$— $— $561 $561 
Structured settlements— 127 — 127 
Total$— $127 $561 $688 
 
Outstanding principal and interest for these life policy loans totaled $37 million and $36 million at September 30, 2025, and December 31, 2024, respectively.
 
Recorded reserves for the deferred annuities were $565 million and $595 million at September 30, 2025, and December 31, 2024, respectively. Recorded reserves for the structured settlements were $112 million and $116 million at September 30, 2025, and December 31, 2024, respectively.