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Short-Term and Long-Term Debt (Tables) | 12 Months Ended
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Dec. 31, 2024
Debt Disclosure [Abstract] |
Schedule of Changes in Debt | Details underlying short-term and long-term debt (in millions) were as follows:
| As of December 31,
| 2024 |  | 2023
Short-Term Debt |  |  |
Current maturities of long-term debt | $ | 300 |  |  | $ | 250 |
Total short-term debt | $ | 300 |  |  | $ | 250 |
Long-Term Debt, Excluding Current Portion |  |  |
Senior notes: |  |  |
3.35% notes, due 2025 (1) | $ | – |  |  | $ | 300 |
3.625% notes, due 2026 (1) | 400 |  |  | 400 |
3.80% notes, due 2028 (1) | 500 |  |  | 500 |
3.05% notes, due 2030 (1) | 500 |  |  | 500 |
3.40% notes, due 2031 (1) | 500 |  |  | 500 |
3.40% notes, due 2032 (1) | 300 |  |  | 300 |
5.852% notes, due 2034 (1) | 350 |  |  | – |
6.15% notes, due 2036 (1) | 243 |  |  | 243 |
6.30% notes, due 2037 (1)(2) | 375 |  |  | 375 |
7.00% notes, due 2040 (1)(2) | 500 |  |  | 500 |
4.35% notes, due 2048 (1) | 450 |  |  | 450 |
4.375% notes, due 2050 (1) | 300 |  |  | 300 |
Total senior notes | 4,418 |  |  | 4,368 |
Term loans: |  |  |
Variable, due 2027 (3) | 150 |  |  | – |
Total term loans | 150 |  |  | – |
Subordinated notes: |  |  |
Variable, due 2066 (4) (5) | 562 |  |  | 562 |
Variable, due 2067 (4) (6) | 433 |  |  | 433 |
Total subordinated notes | 995 |  |  | 995 |
Capital securities: |  |  |
Variable, due 2066 (4) (7) | 160 |  |  | 160 |
Variable, due 2067 (4) (8) | 58 |  |  | 58 |
Total capital securities | 218 |  |  | 218 |
Unamortized premiums (discounts) | (6) |  |  | (6) |
Unamortized debt issuance costs | (30) |  |  | (30) |
Unamortized adjustments from discontinued hedges | 310 |  |  | 326 |
Fair value hedge on interest rate swap agreements | (199) |  |  | (172) |
Total long-term debt | $ | 5,856 |  |  | $ | 5,699 |
(1) We have the option to repurchase the outstanding notes by paying the greater of 100% of the principal amount of the notes to be redeemed or the make-whole amount (as defined in each note agreement), plus in each case any accrued and unpaid interest as of the date of redemption. (2) Categorized as operating debt for leverage ratio calculations as the proceeds were primarily used as a long-term structured solution to reduce the strain on increasing statutory reserves associated with secondary guarantee UL and term policies. (3) Transitioned from London Interbank Offered Rate (“LIBOR”)-based to Secured Overnight Financing Rate (“SOFR”)-based interest rates, plus an applicable transition spread of 10 basis points due to the discontinued publication of LIBOR effective after June 30, 2023. Our applicable credit spread was 137.5 and 112.5 basis points as of December 31, 2024 and 2023, respectively. In 2024, we repaid $100 million and refinanced and extended the term loan into a $150 million variable-rate term loan due July 16, 2027. (4) To hedge the variability in rates, we purchased interest rate swaps to lock in a fixed rate of approximately 5% over the remaining terms of the subordinated notes and capital securities. (5) Transitioned from LIBOR-based to 3-Month ISDA SOFR-based interest rates after June 30, 2023, plus a credit spread of 236 basis points. (6) Transitioned from LIBOR-based to 3-Month ISDA SOFR-based interest rates after June 30, 2023, plus a credit spread of 204 basis points. (7) Transitioned from LIBOR-based to 3-Month Term SOFR-based interest rates after June 30, 2023, plus a transition spread of 26.161 basis points after June 30, 2023, plus a credit spread of 236 basis points. (8) Transitioned from LIBOR-based to 3-Month Term SOFR-based interest rates after June 30, 2023, plus a transition spread of 26.161 basis points after June 30, 2023, plus a credit spread of 204 basis points.
Future Principal Payments | Future principal payments due on long-term debt (in millions) as of December 31, 2024, were as follows:
2025 | $ | 300 |
2026 | 400 |
2027 | 150 |
2028 | 500 |
2029 | – |
Thereafter | 4,731 |
Total | $ | 6,081 |
Schedule of Line of Credit Facilities | Credit facilities, which allow for borrowing or issuances of letters of credit (“LOCs”), (in millions) were as follows:
|  |  | As of December 31, 2024
| Expiration Date |  | Maximum Available |  | LOCs Issued
Credit Facilities |  |  |  |  |
Five-year revolving credit facility | December 21, 2028 |  | $ | 2,000 |  |  | $ | 250 |
LOC facility (1) | August 26, 2031 |  | 965 |  |  | 895 |
LOC facility (1) | October 1, 2031 |  | 827 |  |  | 827 |
Total |  |  | $ | 3,792 |  |  | $ | 1,972 |
(1) Our wholly owned subsidiaries entered into irrevocable LOC facility agreements with third-party lenders supporting inter-company reinsurance agreements.

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