FAIR VALUE (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Fair Value Measurement Levels for all Assets and Liabilities

The following tables present the fair value measurement levels for all assets which the Company has recorded at fair value as of the periods indicated:


			Fair Value Measurement Using:
(Dollars in millions)	December 31, 2025		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Fixed maturities - available for sale
U.S. Treasury securities and obligations of
U.S. government agencies and corporations	$	830	$	—	$	830	$	—
Obligations of U.S. States and political subdivisions	41		—		41		—
Corporate securities	9,882		—		9,512		370
Asset-backed securities	5,077		—		2,987		2,091
Mortgage-backed securities
Agency commercial	412		—		412		—
Non-agency commercial	1,121		—		1,121		—
Agency residential	5,465		—		5,465		—
Non-agency residential	1,721		—		1,721		—
Foreign government securities	2,371		—		2,371		—
Foreign corporate securities	7,653		—		7,639		14
Total fixed maturities - available for sale	34,573		—		32,099		2,474

Equity securities, fair value	180		88		92		—

(Some amounts may not reconcile due to rounding.)


			Fair Value Measurement Using:
(Dollars in millions)	December 31, 2024		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Fixed maturities - available for sale
U.S. Treasury securities and obligations of
U.S. government agencies and corporations	$	669	$	—	$	669	$	—
Obligations of U.S. States and political subdivisions	70		—		70		—
Corporate securities	7,010		—		6,492		518
Asset-backed securities	5,982		—		4,325		1,657
Mortgage-backed securities
Commercial	900		—		900		—
Agency residential	4,931		—		4,931		—
Non-agency residential	1,289		—		1,289		—
Foreign government securities	2,196		—		2,196		—
Foreign corporate securities	5,861		—		5,847		14
Total fixed maturities - available for sale	28,908		—		26,719		2,189

Equity securities, fair value	217		79		133		5

(Some amounts may not reconcile due to rounding.)

Schedule of Activity under Level 3, Fair Value Measurements using Significant Unobservable Inputs by Asset Type

The following table presents the activity under Level 3, fair value measurements using significant unobservable inputs for fixed maturities - available for sale, for the periods indicated:


	Total Fixed Maturities - Available for Sale
	December 31, 2025						December 31, 2024
(Dollars in millions)	Corporate Securities		Asset-Backed Securities		Foreign Corporate		Total		Corporate Securities		Asset-Backed Securities		Foreign Corporate		Total
Beginning balance fixed maturities	$	518	$	1,657	$	14	$	2,189	$	672	$	1,305	$	16	$	1,993
Total gains or (losses) (realized/unrealized)
Included in earnings (or changes in net assets)	(38)		(13)		—		(52)		(1)		—		1		—
Included in other comprehensive income (loss)	(7)		8		—		1		1		12		—		13
Purchases, issuances and settlements	(103)		440		—		336		(154)		339		(2)		183
Transfers in and/or (out) of Level 3 and reclassification
of securities in/(out) of investment categories	—		—		—		—		—		—		—		—
Ending balance	$	370	$	2,091	$	14	$	2,474	$	518	$	1,657	$	14	$	2,189

The amount of total gains or losses for the period
included in earnings (or changes in net assets)
attributable to the change in unrealized gains
or losses relating to assets still held
at the reporting date	$	(16)	$	(14)	$	—	$	(29)	$	(3)	$	—	$	—	$	(3)

(Some amounts may not reconcile due to rounding.)

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References + Details