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Fair Value
 9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value Fair Value
Assets and liabilities measured at fair value on a recurring basis are summarized in the following tables. Corporate bonds and other includes obligations of the United States of America (“U.S.”) Treasury, government-sponsored enterprises, foreign governments and redeemable preferred stock.

September 30, 2024
Level 1
Level 2
Level 3
Total
(In millions)    
     
Fixed maturity securities:    
Corporate bonds and other$225 $25,289 $1,237 $26,751 
States, municipalities and political subdivisions7,103 45 7,148 
Asset-backed7,713 915 8,628 
Fixed maturities available-for-sale225 40,105 2,197 42,527 
Fixed maturities trading528 528 
Total fixed maturities$753 $40,105 $2,197 $43,055 
 
Equity securities$765 $436 $14 $1,215 
Short-term and other5,043 30 5,073 
Receivables6 6 
Payable to brokers(57)(57)
December 31, 2023
Fixed maturity securities:
Corporate bonds and other$161 $23,926 $1,045 $25,132 
States, municipalities and political subdivisions7,348 44 7,392 
Asset-backed7,000 901 7,901 
Fixed maturities available-for-sale161 38,274 1,990 40,425 
Fixed maturities trading201 201 
Total fixed maturities$362 $38,274 $1,990 $40,626 
Equity securities$586 $440 $24 $1,050 
Short-term and other4,215 32 4,247 
Receivables13 13 
Payable to brokers(62)(62)
The following tables present reconciliations for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2024 and 2023:

Net Realized Investment Gains (Losses) and Net Change in Unrealized Investment Gains (Losses)
Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at September 30
Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at September 30
2024Balance, July 1
Included in Net Income
Included in OCIPurchases
Sales
Settlements
Transfers into
Level 3
Transfers out of Level 3
Balance, September 30
(In millions)
Fixed maturity securities:
Corporate bonds and other$1,129 $59 $83 $(10)$(24)$1,237 $57 
States, municipalities and political subdivisions43 2 45 2 
Asset-backed887 $1 30 38 (23)$(18)915 30 
Fixed maturities available-for-sale$2,059 $1 $91 $121 $(10)$(47)$— $(18)$2,197 $— $89 
Equity securities$14 $14 
Net Realized Investment Gains (Losses) and Net Change in Unrealized Investment Gains (Losses)
Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at September 30
Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at September 30
2023Balance, July 1Included in Net IncomeIncluded in OCIPurchasesSalesSettlementsTransfers into
Level 3		Transfers out of Level 3
Balance, September 30
(In millions)
Fixed maturity securities:
Corporate bonds and other$971 $(36)$29 $(19)$945 $(36)
States, municipalities and political subdivisions43 (2)41 (2)
Asset-backed883 $1 (28)61 (13)$(7)897 (28)
Fixed maturities available-for-sale$1,897 $1 $(66)$90 $— $(32)$— $(7)$1,883 $— $(66)
Equity securities$26 $(1)$(2)$23 $(1)
Net Realized Investment Gains (Losses) and Net Change in Unrealized Investment Gains (Losses)
Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at September 30
Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at September 30
2024Balance, January 1
Included in Net Income
Included in OCIPurchases
Sales
Settlements
Transfers into
Level 3
Transfers out of Level 3
Balance, September 30
(In millions)           
            
Fixed maturity securities:           
Corporate bonds and other$1,045 $39 $229 $(10)$(77)$11 $1,237 $34 
States, municipalities and political subdivisions44 1 45 1 
Asset-backed901 $5 14 111 (14)(65)$(37)915 14 
Fixed maturities available-for-sale$1,990 $5 $54 $340 $(24)$(142)$11 $(37)$2,197 $— $49 
 
Equity securities$24 $6 $3 $(19)$14 $2 
Net Realized Investment Gains (Losses) and Net Change in Unrealized Investment Gains (Losses)
Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at September 30
Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at September 30
2023Balance, January 1Included in Net Income Included in OCIPurchasesSales Settlements Transfers into
 Level 3		Transfers out of Level 3
Balance, September 30
(In millions)          
          
Fixed maturity securities:          
Corporate bonds and other$810 $(27)$178 $(27)$11 $945 $(27)
States, municipalities and political subdivisions43 (2)41 (2)
Asset-backed788 $10 (28)203 (39)23 $(60)897 (28)
Fixed maturities available-for-sale$1,641 $10 $(57)$381 $— $(66)$34 $(60)$1,883 $— $(57)
 
Equity securities$35 $(8)$(4)$23 $(8)
Net investment gains and losses are reported in Net income as follows:

Major Category of Assets and LiabilitiesConsolidated Condensed Statements of Operations Line Items
  
Fixed maturity securities available-for-saleInvestment gains (losses)
Fixed maturity securities tradingNet investment income
Equity securitiesInvestment gains (losses) and Net investment income
Other invested assetsInvestment gains (losses) and Net investment income
Derivative financial instruments held in a trading portfolioNet investment income
Derivative financial instruments, otherInvestment gains (losses) and Operating revenues and other
Significant Unobservable Inputs

The following tables present quantitative information about the significant unobservable inputs utilized in the fair value measurement of Level 3 assets. Valuations for assets and liabilities not presented in the tables below are primarily based on broker/dealer quotes for which there is a lack of transparency as to inputs used to develop the valuations. The quantitative detail of unobservable inputs from these broker quotes is neither provided nor reasonably available. The weighted average rate is calculated based on fair value.

September 30, 2024Estimated
Fair Value		Valuation TechniquesUnobservable InputsRange (Weighted Average)
 (In millions)  
    
Fixed maturity securities$1,713 Discounted cash flowCredit spread1 %—6 %(2 %)
   
December 31, 2023  
   
Fixed maturity securities$1,495 Discounted cash flowCredit spread1 %—7 %(2 %)

For fixed maturity securities, an increase to the credit spread assumptions would result in a lower fair value measurement.

Financial Assets and Liabilities Not Measured at Fair Value

The carrying amount, estimated fair value and the level of the fair value hierarchy of the financial assets and liabilities which are not measured at fair value on the Consolidated Condensed Balance Sheets are presented in the following tables. The carrying amounts and estimated fair values of short-term debt and long-term debt exclude finance lease obligations. The carrying amounts reported on the Consolidated Condensed Balance Sheets for cash and short-term investments not carried at fair value and certain other assets and liabilities approximate fair value due to the short-term nature of these items.

Carrying AmountEstimated Fair Value
September 30, 2024Level 1Level 2Level 3Total
(In millions)     
      
Assets:     
Other invested assets, primarily mortgage loans$1,003 $988 $988 
 
Liabilities:
Short-term debt712 $599 108 707 
Long-term debt8,818 7,892 840 8,732 
 
December 31, 2023
 
Assets:
Other invested assets, primarily mortgage loans$1,035 $997 $997 
 
Liabilities:
Short-term debt1,083 $546 520 1,066 
Long-term debt7,915 7,255 385 7,640