INVESTMENTS (Tables)
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12 Months Ended |
Dec. 31, 2025 |
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| Investments, Debt and Equity Securities [Abstract] |
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| Schedule of Amortized Cost, Allowance for Credit Losses, Gross Unrealized Appreciation/(Depreciation) and Fair Value of Fixed Maturity Securities |
The tables below present the amortized cost, allowance for credit losses, gross unrealized appreciation/(depreciation) (“URA(D)”) and fair value of fixed maturity securities - available for sale for the periods indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | At December 31, 2025 | | (Dollars in millions) | Amortized
Cost | | Allowance for
Credit Losses | | Unrealized
Appreciation | | Unrealized
Depreciation | | Fair
Value | | Fixed maturity securities - available for sale | | | | | | | | | | | U.S. Treasury securities and obligations of | | | | | | | | | | | U.S. government agencies and corporations | $ | 845 | | | $ | — | | | $ | 4 | | | $ | (19) | | | $ | 830 | | | Obligations of U.S. states and political subdivisions | 45 | | | — | | | — | | | (4) | | | 41 | | | Corporate securities | 9,913 | | | (54) | | | 206 | | | (183) | | | 9,882 | | | Asset-backed securities | 5,094 | | | (14) | | | 14 | | | (17) | | | 5,077 | | | Mortgage-backed securities | | | | | | | | | | | Agency commercial | 404 | | | — | | | 9 | | | (2) | | | 412 | | | Non-agency commercial | 1,151 | | | — | | | 4 | | | (33) | | | 1,121 | | | Agency residential | 5,544 | | | — | | | 82 | | | (161) | | | 5,465 | | | Non-agency residential | 1,689 | | | — | | | 32 | | | (1) | | | 1,721 | | | Foreign government securities | 2,400 | | | — | | | 36 | | | (64) | | | 2,371 | | | Foreign corporate securities | 7,535 | | | — | | | 253 | | | (135) | | | 7,653 | | | Total fixed maturity securities - available for sale | $ | 34,620 | | | $ | (68) | | | $ | 640 | | | $ | (619) | | | $ | 34,573 | |
(Some amounts may not reconcile due to rounding.) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | At December 31, 2024 | | (Dollars in millions) | Amortized
Cost | | Allowance for
Credit Losses | | Unrealized
Appreciation | | Unrealized
Depreciation | | Fair
Value | | Fixed maturity securities - available for sale | | | | | | | | | | | U.S. Treasury securities and obligations of | | | | | | | | | | | U.S. government agencies and corporations | $ | 688 | | | $ | — | | | $ | 5 | | | $ | (24) | | | $ | 669 | | | Obligations of U.S. states and political subdivisions | 75 | | | — | | | — | | | (5) | | | 70 | | | Corporate securities | 7,288 | | | (35) | | | 57 | | | (299) | | | 7,010 | | | Asset-backed securities | 5,994 | | | — | | | 28 | | | (39) | | | 5,982 | | | Mortgage-backed securities | | | | | | | | | | | Agency commercial | — | | | — | | | — | | | — | | | — | | | Non-agency commercial | 965 | | | — | | | 1 | | | (66) | | | 900 | | | Agency residential | 5,205 | | | — | | | 13 | | | (287) | | | 4,931 | | | Non-agency residential | 1,291 | | | — | | | 9 | | | (11) | | | 1,289 | | | Foreign government securities | 2,330 | | | — | | | 13 | | | (147) | | | 2,196 | | | Foreign corporate securities | 6,099 | | | — | | | 42 | | | (279) | | | 5,861 | | | Total fixed maturity securities - available for sale | $ | 29,934 | | | $ | (36) | | | $ | 167 | | | $ | (1,157) | | | $ | 28,908 | |
(Some amounts may not reconcile due to rounding.) The following tables show amortized cost, allowance for credit losses, gross URA(D) and fair value of fixed maturity securities - held to maturity for the periods indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | At December 31, 2025 | | (Dollars in millions) | Amortized
Cost | | Allowance for
Credit Losses | | Unrealized
Appreciation | | Unrealized
Depreciation | | Fair
Value | | Fixed maturity securities - held to maturity | | | | | | | | | | | Corporate securities | $ | 166 | | | $ | (2) | | | $ | 7 | | | $ | (1) | | | $ | 169 | | | Asset-backed securities | 328 | | | (3) | | | 5 | | | (8) | | | 322 | | | Mortgage-backed securities | | | | | | | | | | | Commercial | — | | | — | | | — | | | — | | | — | | | Foreign corporate securities | 79 | | | (1) | | | 6 | | | — | | | 84 | | | Total fixed maturity securities - held to maturity | $ | 573 | | | $ | (6) | | | $ | 18 | | | $ | (9) | | | $ | 576 | |
(Some amounts may not reconcile due to rounding.) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | At December 31, 2024 | | (Dollars in millions) | Amortized
Cost | | Allowance for
Credit Losses | | Unrealized
Appreciation | | Unrealized
Depreciation | | Fair
Value | | Fixed maturity securities - held to maturity | | | | | | | | | | | Corporate securities | $ | 177 | | | $ | (2) | | | $ | 5 | | | $ | (4) | | | $ | 175 | | | Asset-backed securities | 484 | | | (4) | | | 5 | | | (8) | | | 477 | | | Mortgage-backed securities | | | | | | | | | | | Commercial | 21 | | | — | | | — | | | — | | | 21 | | | Foreign corporate securities | 84 | | | (1) | | | 4 | | | — | | | 86 | | | Total fixed maturity securities - held to maturity | $ | 765 | | | $ | (8) | | | $ | 14 | | | $ | (12) | | | $ | 759 | |
(Some amounts may not reconcile due to rounding.)
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| Schedule of Amortized Cost and Fair Value of Fixed Maturity Securities, by Contractual Maturity |
The amortized cost and fair value of fixed maturity securities - available for sale are shown in the following table by contractual maturity. As the stated maturity of such securities may not be indicative of actual maturities, the totals for mortgage-backed and asset-backed securities are shown separately. | | | | | | | | | | | | | | | | | | | | | | | | | At December 31, 2025 | | At December 31, 2024 | | (Dollars in millions) | Amortized
Cost | | Fair
Value | | Amortized
Cost | | Fair
Value | | Fixed maturity securities - available for sale | | | | | | | | | Due in one year or less | $ | 1,440 | | | $ | 1,405 | | | $ | 1,116 | | | $ | 1,080 | | | Due after one year through five years | 10,746 | | | 10,819 | | | 8,774 | | | 8,480 | | | Due after five years through ten years | 6,722 | | | 6,781 | | | 4,764 | | | 4,523 | | | Due after ten years | 1,830 | | | 1,772 | | | 1,826 | | | 1,723 | | | Asset-backed securities | 5,094 | | | 5,077 | | | 5,994 | | | 5,982 | | | Mortgage-backed securities | | | | | | | | | Agency commercial | 404 | | | 412 | | | — | | | — | | | Non-agency commercial | 1,151 | | | 1,121 | | | 965 | | | 900 | | | Agency residential | 5,544 | | | 5,465 | | | 5,205 | | | 4,931 | | | Non-agency residential | 1,689 | | | 1,721 | | | 1,291 | | | 1,289 | | | Total fixed maturity securities -available for sale | $ | 34,620 | | | $ | 34,573 | | | $ | 29,934 | | | $ | 28,908 | |
(Some amounts may not reconcile due to rounding.) The amortized cost and fair value of fixed maturity securities - held to maturity are shown in the following table by contractual maturity. As the stated maturity of such securities may not be indicative of actual maturities, the totals for mortgage-backed and asset-backed securities are shown separately. | | | | | | | | | | | | | | | | | | | | | | | | | At December 31, 2025 | | At December 31, 2024 | | (Dollars in millions) | Amortized
Cost | | Fair
Value | | Amortized
Cost | | Fair
Value | | Fixed maturity securities - held to maturity | | | | | | | | | Due in one year or less | $ | 25 | | | $ | 25 | | | $ | 7 | | | $ | 7 | | | Due after one year through five years | 68 | | | 69 | | | 67 | | | 67 | | | Due after five years through ten years | 4 | | | 4 | | | 37 | | | 35 | | | Due after ten years | 148 | | | 155 | | | 150 | | | 152 | | | Asset-backed securities | 328 | | | 322 | | | 484 | | | 477 | | | Mortgage-backed securities | | | | | | | | | Commercial | — | | | — | | | 21 | | | 21 | | | Total fixed maturity securities - held to maturity | $ | 573 | | | $ | 576 | | | $ | 765 | | | $ | 759 | |
(Some amounts may not reconcile due to rounding.)
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| Schedule of Changes in Net Unrealized Appreciation (Depreciation) for Company's Investments |
The changes in net URA(D) for the Company’s investments are as follows: | | | | | | | | | | | | | Years Ended December 31, | | (Dollars in millions) | 2025 | | 2024 | | Increase (decrease) during the period between the fair value and cost | | | | | of investments carried at fair value, and deferred taxes thereon: | | | | | Fixed maturity securities - available for sale, held to maturity and short-term investments | $ | 1,018 | | | $ | (203) | | | Equity method investments | — | | | 18 | | | Change in URA(D), pre-tax | 1,018 | | | (185) | | | Deferred tax benefit (expense) | (164) | | | 76 | | | Change in URA(D), net of deferred taxes, included in shareholders’ equity | $ | 854 | | | $ | (109) | |
(Some amounts may not reconcile due to rounding.)
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| Schedule of Aggregate Fair Value and Gross Unrealized Depreciation of Fixed Maturity Securities by Security Type |
The tables below display the aggregate fair value and gross unrealized depreciation of fixed maturity securities - available for sale by security type and contractual maturity, in each case subdivided according to length of time that the individual securities had been in a continuous unrealized loss position for the periods indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Duration of Unrealized Loss at December 31, 2025 by Security Type | | Less than 12 months | | Greater than 12 months | | Total | | (Dollars in millions) | Fair Value | | Gross
Unrealized
Depreciation | | Fair Value | | Gross
Unrealized
Depreciation | | Fair Value | | Gross
Unrealized
Depreciation | | Fixed maturity securities - available for sale | | | | | | | | | | | | | U.S. Treasury securities and obligations of | | | | | | | | | | | | | U.S. government agencies and corporations | $ | 244 | | | $ | (5) | | | $ | 333 | | | $ | (14) | | | $ | 577 | | | $ | (19) | | | Obligations of U.S. states and political subdivisions | 2 | | | — | | | 33 | | | (4) | | | 35 | | | (4) | | | Corporate securities | 1,370 | | | (31) | | | 1,990 | | | (147) | | | 3,360 | | | (179) | | | Asset-backed securities | 802 | | | (5) | | | 429 | | | (12) | | | 1,231 | | | (17) | | | Mortgage-backed securities | | | | | | | | | | | | | Agency commercial | 43 | | | (1) | | | 17 | | | (1) | | | 60 | | | (2) | | | Non-agency commercial | 288 | | | (5) | | | 631 | | | (29) | | | 919 | | | (33) | | | Agency residential | 234 | | | (3) | | | 1,755 | | | (158) | | | 1,990 | | | (161) | | | Non-agency residential | 81 | | | — | | | 87 | | | — | | | 168 | | | (1) | | | Foreign government securities | 260 | | | (4) | | | 854 | | | (61) | | | 1,114 | | | (64) | | | Foreign corporate securities | 847 | | | (15) | | | 1,615 | | | (120) | | | 2,463 | | | (135) | | | Total | $ | 4,171 | | | $ | (68) | | | $ | 7,745 | | | $ | (547) | | | $ | 11,916 | | | $ | (615) | | | Securities where an allowance for credit loss was recorded | 24 | | | (2) | | | 14 | | | (2) | | | 37 | | | (4) | | | Total fixed maturity securities - available for sale | $ | 4,194 | | | $ | (70) | | | $ | 7,759 | | | $ | (549) | | | $ | 11,953 | | | $ | (619) | |
(Some amounts may not reconcile due to rounding.) The tables below display the aggregate fair value and gross unrealized depreciation of fixed maturity securities - available for sale by security type and contractual maturity, in each case subdivided according to length of time that individual securities had been in a continuous unrealized loss position for the periods indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Duration of Unrealized Loss at December 31, 2024 by Security Type | | Less than 12 months | | Greater than 12 months | | Total | | (Dollars in millions) | Fair Value | | Gross
Unrealized
Depreciation | | Fair Value | | Gross
Unrealized
Depreciation | | Fair Value | | Gross
Unrealized
Depreciation | | Fixed maturity securities - available for sale | | | | | | | | | | | | | U.S. Treasury securities and obligations of | | | | | | | | | | | | | U.S. government agencies and corporations | $ | 80 | | | $ | (1) | | | $ | 398 | | | $ | (23) | | | $ | 478 | | | $ | (24) | | | Obligations of U.S. states and political subdivisions | 9 | | | — | | | 40 | | | (5) | | | 48 | | | (5) | | | Corporate securities | 2,744 | | | (76) | | | 2,132 | | | (221) | | | 4,876 | | | (297) | | | Asset-backed securities | 958 | | | (20) | | | 537 | | | (19) | | | 1,495 | | | (39) | | | Mortgage-backed securities | | | | | | | | | | | | | Agency commercial | — | | | — | | | — | | | — | | | — | | | — | | | Non-agency commercial | 53 | | | (3) | | | 757 | | | (63) | | | 810 | | | (66) | | | Agency residential | 2,754 | | | (115) | | | 1,226 | | | (172) | | | 3,980 | | | (287) | | | Non-agency residential | 654 | | | (11) | | | 25 | | | — | | | 678 | | | (11) | | | Foreign government securities | 851 | | | (35) | | | 828 | | | (112) | | | 1,679 | | | (147) | | | Foreign corporate securities | 2,484 | | | (61) | | | 1,785 | | | (218) | | | 4,269 | | | (279) | | | Total | $ | 10,587 | | | $ | (323) | | | $ | 7,728 | | | $ | (833) | | | $ | 18,315 | | | $ | (1,156) | | | Securities where an allowance for credit loss was recorded | 17 | | | (1) | | | — | | | — | | | 17 | | | (1) | | | Total fixed maturity securities - available for sale | $ | 10,604 | | | $ | (324) | | | $ | 7,728 | | | $ | (833) | | | $ | 18,332 | | | $ | (1,157) | |
(Some amounts may not reconcile due to rounding.)
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| Schedule of Aggregate Fair Value and Gross Unrealized Depreciation of Fixed Maturity Securities by Contractual Maturity |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Duration of Unrealized Loss at December 31, 2025 by Maturity | | Less than 12 months | | Greater than 12 months | | Total | | (Dollars in millions) | Fair Value | | Gross
Unrealized
Depreciation | | Fair Value | | Gross
Unrealized
Depreciation | | Fair Value | | Gross
Unrealized
Depreciation | | Fixed maturity securities - available for sale | | | | | | | | | | | | | Due in one year or less | $ | 165 | | | $ | (5) | | | $ | 675 | | | $ | (18) | | | $ | 840 | | | $ | (23) | | | Due in one year through five years | 1,475 | | | (33) | | | 2,411 | | | (156) | | | 3,887 | | | (189) | | | Due in five years through ten years | 859 | | | (14) | | | 987 | | | (99) | | | 1,846 | | | (112) | | | Due after ten years | 223 | | | (3) | | | 752 | | | (74) | | | 975 | | | (77) | | | Asset-backed securities | 802 | | | (5) | | | 429 | | | (12) | | | 1,231 | | | (17) | | | Mortgage-backed securities | 646 | | | (8) | | | 2,490 | | | (188) | | | 3,137 | | | (196) | | | Total | $ | 4,171 | | | $ | (68) | | | $ | 7,745 | | | $ | (547) | | | $ | 11,916 | | | $ | (615) | | | Securities where an allowance for credit loss was recorded | 24 | | | (2) | | | 14 | | | (2) | | | 37 | | | (4) | | | Total fixed maturity securities - available for sale | $ | 4,194 | | | $ | (70) | | | $ | 7,759 | | | $ | (549) | | | $ | 11,953 | | | $ | (619) | |
(Some amounts may not reconcile due to rounding.) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Duration of Unrealized Loss at December 31, 2024 by Maturity | | Less than 12 months | | Greater than 12 months | | Total | | (Dollars in millions) | Fair Value | | Gross
Unrealized
Depreciation | | Fair Value | | Gross
Unrealized
Depreciation | | Fair Value | | Gross
Unrealized
Depreciation | | Fixed maturity securities - available for sale | | | | | | | | | | | | | Due in one year or less | $ | 138 | | | $ | (5) | | | $ | 544 | | | $ | (34) | | | $ | 682 | | | $ | (39) | | | Due in one year through five years | 3,503 | | | (87) | | | 2,770 | | | (249) | | | 6,273 | | | (335) | | | Due in five years through ten years | 1,850 | | | (50) | | | 1,382 | | | (220) | | | 3,232 | | | (271) | | | Due after ten years | 677 | | | (32) | | | 487 | | | (76) | | | 1,164 | | | (107) | | | Asset-backed securities | 958 | | | (20) | | | 537 | | | (19) | | | 1,495 | | | (39) | | | Mortgage-backed securities | 3,461 | | | (129) | | | 2,008 | | | (235) | | | 5,469 | | | (364) | | | Total | $ | 10,587 | | | $ | (323) | | | $ | 7,728 | | | $ | (833) | | | $ | 18,315 | | | $ | (1,156) | | | Securities where an allowance for credit loss was recorded | 17 | | | (1) | | | — | | | — | | | 17 | | | (1) | | | Total fixed maturity securities - available for sale | $ | 10,604 | | | $ | (324) | | | $ | 7,728 | | | $ | (833) | | | $ | 18,332 | | | $ | (1,157) | |
(Some amounts may not reconcile due to rounding.)
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| Schedule of Components of Net Investment Income |
The components of net investment income are presented in the table below for the periods indicated: | | | | | | | | | | | | | | | | | | | Years Ended December 31, | | (Dollars in millions) | 2025 | | 2024 | | 2023 | | Fixed maturities | $ | 1,572 | | | $ | 1,481 | | | $ | 1,153 | | | Equity securities | 4 | | | 3 | | | 3 | | | Short-term investments and cash | 169 | | | 195 | | | 140 | | | Other invested assets | | | | | | | Limited partnerships | 277 | | | 206 | | | 122 | | | Other | 124 | | | 104 | | | 59 | | | Gross investment income before adjustments | 2,146 | | | 1,989 | | | 1,477 | | | Funds held interest income (expense) | 26 | | | 26 | | | 10 | | | Future policy benefit reserve income (expense) | (1) | | | (1) | | | (1) | | | Gross investment income | 2,172 | | | 2,013 | | | 1,486 | | | Investment expenses | 48 | | | 59 | | | 53 | | | Net investment income | $ | 2,124 | | | $ | 1,954 | | | $ | 1,434 | |
(Some amounts may not reconcile due to rounding.)
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| Schedule of Components of Net Gains (Losses) on Investments |
The components of net gains (losses) on investments are presented in the table below for the periods indicated: | | | | | | | | | | | | | | | | | | | Years Ended December 31, | | (Dollars in millions) | 2025 | | 2024 | | 2023 | | Credit allowance on fixed maturity securities | $ | (30) | | | $ | 13 | | | $ | 7 | | | Gains (losses) from fair value adjustment on public equities | (1) | | | (1) | | | — | | | | | | | | | Net realized gains (losses) from dispositions: | | | | | | | Fixed maturities | (112) | | | 6 | | | (292) | | | Equity securities | (1) | | | 1 | | | 8 | | | Other invested assets | — | | | (1) | | | — | | | Short-term investments | — | | | 1 | | | — | | | Total net gains (losses) from dispositions | (112) | | | 7 | | | (283) | | | | | | | | | Total net gains (losses) on investments | $ | (143) | | | $ | 19 | | | $ | (276) | |
(Some amounts may not reconcile due to rounding.)
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| Schedule of Roll Forward of Allowance for Credit Losses of Fixed Maturities, Available for Sale |
The following tables provide a roll forward of the Company’s beginning and ending balance of allowance for credit losses for the periods indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | Roll Forward of Allowance for Credit Losses - Fixed Maturities - Available for Sale | | Twelve Months Ended December 31, 2025 | | Corporate
Securities | | Asset-Backed
Securities | | | | Foreign
Corporate
Securities | | Total | | (Dollars in millions) | | | | | | | | | | | Beginning balance | $ | (35) | | | $ | — | | | | | $ | — | | | $ | (36) | | | Credit losses on securities where credit losses were not previously recorded | (28) | | | (14) | | | | | — | | | (42) | | | Increases in allowance on previously impaired securities | (16) | | | — | | | | | — | | | (16) | | | Decreases in allowance on previously impaired securities | — | | | — | | | | | — | | | — | | | Reduction in allowance due to disposals | 25 | | | — | | | | | — | | | 26 | | | | | | | | | | | | | Balance, end of period | $ | (54) | | | $ | (14) | | | | | $ | — | | | $ | (68) | |
(Some amounts may not reconcile due to rounding.) | | | | | | | | | | | | | | | | | | | | | | | | | | | Roll Forward of Allowance for Credit Losses - Fixed Maturities - Available for Sale | | Twelve Months Ended December 31, 2024 | | Corporate
Securities | | Asset-Backed
Securities | | | | Foreign
Corporate
Securities | | Total | | (Dollars in millions) | | | | | | | | | | | Beginning balance | $ | (47) | | | $ | — | | | | | $ | (1) | | | $ | (48) | | | Credit losses on securities where credit losses were not previously recorded | (9) | | | — | | | | | — | | | (9) | | | Increases in allowance on previously impaired securities | — | | | — | | | | | — | | | — | | | Decreases in allowance on previously impaired securities | — | | | — | | | | | — | | | — | | | Reduction in allowance due to disposals | 20 | | | — | | | | | 1 | | | 21 | | | | | | | | | | | | | Balance, end of period | $ | (35) | | | $ | — | | | | | $ | — | | | $ | (36) | |
(Some amounts may not reconcile due to rounding.)
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| Schedule of Proceeds and Split Between Gross Gains and Losses, from Sales of Fixed Maturity Securities |
The proceeds and split between gross gains and losses from sales of fixed maturity securities - available for sale, fixed maturities - held to maturity and equity securities are presented in the table below for the periods indicated: | | | | | | | | | | | | | | | | | | | Years Ended December 31, | | (Dollars in millions) | 2025 | | 2024 | | 2023 | | Proceeds from sales of fixed maturity securities - available for sale | $ | 1,571 | | | $ | 6,257 | | | $ | 3,849 | | | Gross gains from sales | 48 | | | 166 | | | 35 | | | Gross losses from sales | (159) | | | (160) | | | (327) | | | | | | | | | Proceeds from sales of fixed maturity securities - held to maturity | $ | 10 | | | $ | — | | | $ | — | | | Gross gains from sales | — | | | — | | | — | | | Gross losses from sales | (1) | | | — | | | — | | | | | | | | | Proceeds from sales of equity securities | $ | 56 | | | $ | 37 | | | $ | 126 | | | Gross gains from sales | — | | | 2 | | | 8 | | | Gross losses from sales | (1) | | | (1) | | | — | |
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