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Fair Value | 6 Months Ended
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Jun. 30, 2025
Fair Value Disclosures [Abstract] |
Fair Value | Fair Value Fair value is the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following fair value hierarchy is used in selecting inputs, with the highest priority given to Level 1, as these are the most transparent or reliable. Level 1 - Quoted prices for identical instruments in active markets. Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets. Level 3 - Valuations derived from valuation techniques in which one or more significant inputs are not observable. Prices may fall within Level 1, 2 or 3 depending upon the methodology and inputs used to estimate fair value for each specific security. In general, the Company seeks to price securities using third-party pricing services. Securities not priced by pricing services are submitted to independent brokers for valuation and, if those are not available, internally developed pricing models are used to value assets using a methodology and inputs the Company believes market participants would use to value the assets. Prices obtained from third-party pricing services or brokers are not adjusted by the Company. The Company performs control procedures over information obtained from pricing services and brokers to ensure prices received represent a reasonable estimate of fair value and to confirm representations regarding whether inputs are observable or unobservable. Procedures may include i) the review of pricing service methodologies or broker pricing qualifications, ii) back-testing, where past fair value estimates are compared to actual transactions executed in the market on similar dates, iii) exception reporting, where period-over-period changes in price are reviewed and challenged with the pricing service or broker based on exception criteria, and iv) deep dives, where the Company performs an independent analysis of the inputs and assumptions used to price individual securities. Assets and Liabilities Measured at Fair Value Assets and liabilities measured at fair value on a recurring basis are presented 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.
June 30, 2025 |  |  |  |  |  |  | Total Assets/Liabilities at Fair Value
(In millions) | Level 1 |  | Level 2 |  | Level 3 |
Assets |  |  |  |  |  |  |
Fixed maturity securities: |  |  |  |  |  |  |
Corporate bonds and other | $ | 229 |  |  | $ | 25,038 |  |  | $ | 1,388 |  |  | $ | 26,655 |
States, municipalities and political subdivisions | — |  |  | 7,331 |  |  | 44 |  |  | 7,375 |
Asset-backed | — |  |  | 7,883 |  |  | 886 |  |  | 8,769 |
Total fixed maturity securities | 229 |  |  | 40,252 |  |  | 2,318 |  |  | 42,799 |
Equity securities: |  |  |  |  |  |  |
Common stock | 213 |  |  | — |  |  | 10 |  |  | 223 |
Non-redeemable preferred stock | 35 |  |  | 469 |  |  | — |  |  | 504 |
Total equity securities | 248 |  |  | 469 |  |  | 10 |  |  | 727 |
Short-term and other | 1,511 |  |  | 45 |  |  | — |  |  | 1,556 |
Total assets | $ | 1,988 |  |  | $ | 40,766 |  |  | $ | 2,328 |  |  | $ | 45,082 |
Total liabilities | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
December 31, 2024 |  |  |  |  |  |  | Total Assets/Liabilities at Fair Value
(In millions) | Level 1 |  | Level 2 |  | Level 3 |
Assets |  |  |  |  |  |  |
Fixed maturity securities: |  |  |  |  |  |  |
Corporate bonds and other | $ | 223 |  |  | $ | 24,340 |  |  | $ | 1,278 |  |  | $ | 25,841 |
States, municipalities and political subdivisions | — |  |  | 6,762 |  |  | 42 |  |  | 6,804 |
Asset-backed | — |  |  | 7,590 |  |  | 876 |  |  | 8,466 |
Total fixed maturity securities | 223 |  |  | 38,692 |  |  | 2,196 |  |  | 41,111 |
Equity securities: |  |  |  |  |  |  |
Common stock | 162 |  |  | — |  |  | 18 |  |  | 180 |
Non-redeemable preferred stock | 36 |  |  | 441 |  |  | 2 |  |  | 479 |
Total equity securities | 198 |  |  | 441 |  |  | 20 |  |  | 659 |
Short-term and other | 1,852 |  |  | 70 |  |  | — |  |  | 1,922 |
Total assets | $ | 2,273 |  |  | $ | 39,203 |  |  | $ | 2,216 |  |  | $ | 43,692 |
Total liabilities | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
The tables below present a reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3).
Level 3 (In millions) | Corporate bonds and other |  | States, municipalities and political subdivisions |  | Asset-backed |  | Equity securities |  |  |  | Total
Balance as of April 1, 2025 | $ | 1,351 |  |  | $ | 44 |  |  | $ | 889 |  |  | $ | 17 |  |  |  |  | $ | 2,301 |
Total realized and unrealized investment gains (losses): |  |  |  |  |  |  |  |  |  |  |
Reported in Net investment gains (losses) | 1 |  |  | — |  |  | (4) |  |  | — |  |  |  |  | (3) |
Reported in Net investment income | — |  |  | — |  |  | 5 |  |  | — |  |  |  |  | 5 |
Reported in Other comprehensive income (loss) | 16 |  |  | — |  |  | (4) |  |  | — |  |  |  |  | 12 |
Total realized and unrealized investment gains (losses) | 17 |  |  | — |  |  | (3) |  |  | — |  |  |  |  | 14 |
Purchases | 44 |  |  | — |  |  | 22 |  |  | — |  |  |  |  | 66 |
Sales | — |  |  | — |  |  | — |  |  | (7) |  |  |  |  | (7) |
Settlements | (24) |  |  | — |  |  | (22) |  |  | — |  |  |  |  | (46) |
Transfers into Level 3 | — |  |  | — |  |  | — |  |  | — |  |  |  |  | — |
Transfers out of Level 3 | — |  |  | — |  |  | — |  |  | — |  |  |  |  | — |
Balance as of June 30, 2025 | $ | 1,388 |  |  | $ | 44 |  |  | $ | 886 |  |  | $ | 10 |  |  |  |  | $ | 2,328 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2025 recognized in Net income (loss) in the period | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (1) |  |  |  |  | $ | (1) |
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2025 recognized in Other comprehensive income (loss) in the period | 16 |  |  | — |  |  | (4) |  |  | — |  |  |  |  | 12 |
Level 3 (In millions) | Corporate bonds and other |  | States, municipalities and political subdivisions |  | Asset-backed |  | Equity securities |  |  |  | Total
Balance as of April 1, 2024 | $ | 1,082 |  |  | $ | 43 |  |  | $ | 871 |  |  | $ | 11 |  |  |  |  | $ | 2,007 |
Total realized and unrealized investment gains (losses): |  |  |  |  |  |  |  |  |  |  |
Reported in Net investment gains (losses) | — |  |  | — |  |  | (3) |  |  | — |  |  |  |  | (3) |
Reported in Net investment income | — |  |  | — |  |  | 5 |  |  | — |  |  |  |  | 5 |
Reported in Other comprehensive income (loss) | (8) |  |  | — |  |  | (11) |  |  | — |  |  |  |  | (19) |
Total realized and unrealized investment gains (losses) | (8) |  |  | — |  |  | (9) |  |  | — |  |  |  |  | (17) |
Purchases | 72 |  |  | — |  |  | 55 |  |  | 3 |  |  |  |  | 130 |
Sales | — |  |  | — |  |  | (5) |  |  | — |  |  |  |  | (5) |
Settlements | (17) |  |  | — |  |  | (25) |  |  | — |  |  |  |  | (42) |
Transfers into Level 3 | — |  |  | — |  |  | — |  |  | — |  |  |  |  | — |
Transfers out of Level 3 | — |  |  | — |  |  | — |  |  | — |  |  |  |  | — |
Balance as of June 30, 2024 | $ | 1,129 |  |  | $ | 43 |  |  | $ | 887 |  |  | $ | 14 |  |  |  |  | $ | 2,073 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2024 recognized in Net income (loss) in the period | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | — |
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2024 recognized in Other comprehensive income (loss) in the period | (8) |  |  | — |  |  | (11) |  |  | — |  |  |  |  | (19) |
Level 3 (In millions) | Corporate bonds and other |  | States, municipalities and political subdivisions |  | Asset-backed |  | Equity securities |  |  |  | Total
Balance as of January 1, 2025 | $ | 1,278 |  |  | $ | 42 |  |  | $ | 876 |  |  | $ | 20 |  |  |  |  | $ | 2,216 |
Total realized and unrealized investment gains (losses): |  |  |  |  |  |  |  |  |  |  |
Reported in Net investment gains (losses) | 1 |  |  | — |  |  | (4) |  |  | 2 |  |  |  |  | (1) |
Reported in Net investment income | — |  |  | — |  |  | 9 |  |  | (1) |  |  |  |  | 8 |
Reported in Other comprehensive income (loss) | 37 |  |  | 2 |  |  | (3) |  |  | — |  |  |  |  | 36 |
Total realized and unrealized investment gains (losses) | 38 |  |  | 2 |  |  | 2 |  |  | 1 |  |  |  |  | 43 |
Purchases | 99 |  |  | — |  |  | 49 |  |  | — |  |  |  |  | 148 |
Sales | — |  |  | — |  |  | — |  |  | (7) |  |  |  |  | (7) |
Settlements | (42) |  |  | — |  |  | (41) |  |  | (4) |  |  |  |  | (87) |
Transfers into Level 3 | 15 |  |  | — |  |  | — |  |  | — |  |  |  |  | 15 |
Transfers out of Level 3 | — |  |  | — |  |  | — |  |  | — |  |  |  |  | — |
Balance as of June 30, 2025 | $ | 1,388 |  |  | $ | 44 |  |  | $ | 886 |  |  | $ | 10 |  |  |  |  | $ | 2,328 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2025 recognized in Net income (loss) in the period | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (1) |  |  |  |  | $ | (1) |
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2025 recognized in Other comprehensive income (loss) in the period | 37 |  |  | 2 |  |  | (3) |  |  | — |  |  |  |  | 36 |
Level 3 (In millions) | Corporate bonds and other |  | States, municipalities and political subdivisions |  | Asset-backed |  | Equity securities |  |  |  | Total
Balance as of January 1, 2024 | $ | 1,045 |  |  | $ | 44 |  |  | $ | 901 |  |  | $ | 24 |  |  |  |  | $ | 2,014 |
Total realized and unrealized investment gains (losses): |  |  |  |  |  |  |  |  |  |  |
Reported in Net investment gains (losses) | — |  |  | — |  |  | (7) |  |  | — |  |  |  |  | (7) |
Reported in Net investment income | — |  |  | — |  |  | 11 |  |  | 6 |  |  |  |  | 17 |
Reported in Other comprehensive income (loss) | (20) |  |  | (1) |  |  | (16) |  |  | — |  |  |  |  | (37) |
Total realized and unrealized investment gains (losses) | (20) |  |  | (1) |  |  | (12) |  |  | 6 |  |  |  |  | (27) |
Purchases | 146 |  |  | — |  |  | 73 |  |  | 3 |  |  |  |  | 222 |
Sales | — |  |  | — |  |  | (14) |  |  | (19) |  |  |  |  | (33) |
Settlements | (53) |  |  | — |  |  | (42) |  |  | — |  |  |  |  | (95) |
Transfers into Level 3 | 11 |  |  | — |  |  | — |  |  | — |  |  |  |  | 11 |
Transfers out of Level 3 | — |  |  | — |  |  | (19) |  |  | — |  |  |  |  | (19) |
Balance as of June 30, 2024 | $ | 1,129 |  |  | $ | 43 |  |  | $ | 887 |  |  | $ | 14 |  |  |  |  | $ | 2,073 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2024 recognized in Net income (loss) in the period | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 2 |  |  |  |  | $ | 2 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2024 recognized in Other comprehensive income (loss) in the period | (22) |  |  | (1) |  |  | (16) |  |  | — |  |  |  |  | (39) |
Securities may be transferred in or out of levels within the fair value hierarchy based on the availability of observable market information and quoted prices used to determine the fair value of the security. The availability of observable market information and quoted prices varies based on market conditions and trading volume. Valuation Methodologies and Inputs The following section describes the valuation methodologies and relevant inputs used to measure different financial instruments at fair value, including an indication of the level in the fair value hierarchy in which the instruments are generally classified. Fixed Maturity Securities Level 1 securities include highly liquid government securities and exchange traded bonds, valued using quoted market prices. Level 2 securities include most other fixed maturity securities as the significant inputs are observable in the marketplace. All classes of Level 2 fixed maturity securities are valued using a methodology based on information generated by market transactions involving identical or comparable assets, a discounted cash flow methodology, or a combination of both when necessary. Common inputs for all classes of fixed maturity securities include prices from recently executed transactions of similar securities, marketplace quotes, benchmark yields, spreads off benchmark yields, interest rates and U.S. Treasury or swap curves. Specifically for asset-backed securities, key inputs include prepayment and default projections based on past performance of the underlying collateral and current market data. Fixed maturity securities are primarily assigned to Level 3 in cases where broker/dealer quotes are significant inputs to the valuation and there is a lack of transparency as to whether these quotes are based on information that is observable in the marketplace. Level 3 securities also include private placement debt securities whose fair value is determined using internal models with some inputs that are not market observable. Equity Securities Level 1 equity securities include publicly traded securities valued using quoted market prices. Level 2 securities are primarily valued using pricing for similar securities, recently executed transactions and other pricing models utilizing market observable inputs. Level 3 securities are primarily priced using broker/dealer quotes and internal models with some inputs that are not market observable. Short-Term and Other Invested Assets Securities that are actively traded or have quoted prices are classified as Level 1. These securities include money market funds and treasury bills. Level 2 primarily includes non-U.S. government securities for which all inputs are market observable. Fixed maturity securities purchased within one year of maturity are classified consistent with fixed maturity securities discussed above. Short-term investments as presented in the tables above differ from the amounts presented on the Condensed Consolidated Balance Sheets because certain short-term investments, such as time deposits, are not measured at fair value. As of June 30, 2025 and December 31, 2024, there were $82 million and $79 million of overseas deposits within Other invested assets, which can be redeemed at net asset value in 90 days or less. Overseas deposits are excluded from the fair value hierarchy because their fair value is recorded using the net asset value per share (or equivalent) practical expedient. Significant Unobservable Inputs The following tables present quantitative information about the significant unobservable inputs utilized by the Company in the fair value measurements 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 these unobservable inputs is neither provided nor reasonably available to the Company. The weighted average rate is calculated based on fair value.
June 30, 2025 | Estimated Fair Value (In millions) |  | Valuation Technique(s) |  | Unobservable Input(s) |  | Range (Weighted Average)
Fixed maturity securities | $ | 1,867 |  |  | Discounted cash flow |  | Credit spread |  | 1% - 7% (2%)
December 31, 2024 | Estimated Fair Value (In millions) |  | Valuation Technique(s) |  | Unobservable Input(s) |  | Range (Weighted Average)
Fixed maturity securities | $ | 1,724 |  |  | Discounted cash flow |  | Credit spread |  | 1% - 6% (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 and estimated fair value of the Company's financial assets and liabilities which are not measured at fair value on the Condensed Consolidated Balance Sheets are presented in the following tables.
June 30, 2025 | Carrying Amount |  | Estimated Fair Value
(In millions) |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets |  |  |  |  |  |  |  |  |
Mortgage loans | $ | 1,040 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,026 |  |  | $ | 1,026 |
Liabilities |  |  |  |  |  |  |  |  |
Short-term debt | $ | 500 |  |  | $ | — |  |  | $ | 499 |  |  | $ | — |  |  | $ | 499 |
Long-term debt | 2,475 |  |  | — |  |  | 2,435 |  |  | — |  |  | 2,435 |
December 31, 2024 | Carrying Amount |  | Estimated Fair Value
(In millions) |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets |  |  |  |  |  |  |  |  |
Mortgage loans | $ | 1,019 |  |  | $ | — |  |  | $ | — |  |  | $ | 987 |  |  | $ | 987 |
Liabilities |  |  |  |  |  |  |  |  |
Short-term debt | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Long-term debt | 2,973 |  |  | — |  |  | 2,885 |  |  | — |  |  | 2,885 |
The carrying amounts reported on the Condensed Consolidated Balance Sheets for Cash, Short-term investments not carried at fair value, Accrued investment income and certain Other assets and Other liabilities approximate fair value due to the short term nature of these items. These assets and liabilities are not listed in the tables above.

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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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