FAIR VALUE (Tables)

6 Months Ended

Jun. 30, 2024

Schedule of Fair Value Measurement Levels for all Assets and Liabilities

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


			Fair Value Measurement Using
	June 30, 2024		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
(Dollars in millions)
Assets:
Fixed maturities - available for sale
U.S. Treasury securities and obligations of U.S. government
agencies and corporations	$	1,024	$	—	$	1,024	$	—
Obligations of U.S. States and political subdivisions	105		—		105		—
Corporate securities	7,979		—		7,390		589
Asset-backed securities	5,317		—		3,875		1,442
Mortgage-backed securities
Commercial	934		—		934		—
Agency residential	4,745		—		4,745		—
Non-agency residential	943		—		943		—
Foreign government securities	2,240		—		2,240		—
Foreign corporate securities	5,744		—		5,730		14
Total fixed maturities - available for sale	29,031		—		26,987		2,045

Equity securities, fair value	219		70		144		5

(Some amounts may not reconcile due to rounding.)


			Fair Value Measurement Using
(Dollars in millions)	December 31, 2023		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	$	996	$	—	$	996	$	—
Obligations of U.S. States and political subdivisions	128		—		128		—
Corporate securities	7,353		—		6,681		672
Asset-backed securities	5,618		—		4,313		1,305
Mortgage-backed securities
Commercial	1,000		—		1,000		—
Agency residential	4,695		—		4,695		—
Non-agency residential	443		—		443		—
Foreign government securities	1,967		—		1,967		—
Foreign corporate securities	5,540		—		5,524		16
Total fixed maturities - available for sale	27,740		—		25,747		1,993

Equity securities, fair value	188		70		118		—

(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 tables present 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
	Three Months Ended June 30, 2024						Six Months Ended June 30, 2024
(Dollars in millions)	Corporate Securities		Asset-Backed Securities		Foreign Corporate		Total		Corporate Securities		Asset-Backed Securities		Foreign Corporate		Total
Beginning balance of fixed maturities	$	620	$	1,340	$	16	$	1,976	$	672	$	1,305	$	16	$	1,993
Total gains or (losses) (realized/unrealized)
Included in earnings	5		—		—		5		6		—		—		6
Included in other comprehensive income (loss)	(1)		3		—		2		(1)		10		—		9
Purchases, issuances and settlements	(35)		99		(2)		62		(88)		126		(2)		37
Transfers in/(out) of Level 3 and reclassification of
securities in/(out) of investment categories	—		—		—		—		—		—		—		—
Ending balance of fixed maturities	$	589	$	1,442	$	14	$	2,045	$	589	$	1,442	$	14	$	2,045

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	$	3	$	—	$	—	$	3	$	4	$	—	$	—	$	4

(Some amounts may not reconcile due to rounding.)


	Total Fixed Maturities - Available for Sale
	Three Months Ended June 30, 2023						Six Months Ended June 30, 2023
(Dollars in millions)	Corporate Securities		Asset-Backed Securities		Foreign Corporate		Total		Corporate Securities		Asset-Backed Securities		Foreign Corporate		Total
Beginning balance of fixed maturities	$	709	$	1,020	$	16	$	1,745	$	715	$	994	$	16	$	1,725
Total gains or (losses) (realized/unrealized)
Included in earnings	1		—		—		1		2		—		—		2
Included in other comprehensive income (loss)	(2)		(8)		—		(9)		(6)		10		—		4
Purchases, issuances and settlements	3		103		—		105		—		111		—		111
Transfers in/(out) of Level 3 and reclassification of
securities in/(out) of investment categories	—		—		—		—		—		—		—		—
Ending balance of fixed maturities	$	711	$	1,115	$	16	$	1,842	$	711	$	1,115	$	16	$	1,842

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	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

(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.

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