Company: HUM
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000049071-25-000007
Chunk: 34

Company: HUMANA INC
Filing Date: 2025-02-20
Form: 10-K
Item: Item 8
Chunk 34
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idential400 — 396 4 Commercial1,345 — 1,345 — Asset-backed securities1,771 — 1,733 38 Corporate debt securities6,445 — 6,269 176 Total debt securities17,008 — 16,790 218 Total invested assets$21,590 $4,582 $16,790 $218 

89

Humana Inc.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Our Level 3 assets had fair values of $322 million, or 1.5% of total invested assets, and $218 million, or 1.0% of total invested assets, at December 31, 2024 and 2023, respectively. During the years ended December 31, 2024 and 2023, the changes in the fair value of the assets measured using significant unobservable inputs (Level 3) were comprised of the following:For the year ended December 31, 2024For the year ended December 31, 2023PrivatePlacements(in millions)Beginning balance at January 1$218 $101 Total gains or losses:Realized in earnings(1)— Unrealized in other comprehensive income(1)3 Purchases114 115 Sales(3)— Settlements(5)— Transfers Out— (8)Transfers In— 7 Balance at December 31$322 $218 Interest Rate SwapsWe have entered into interest-rate swap agreements with major financial institutions to convert our interest-rate exposure on some of our senior notes payable from fixed rates to variable rates, based on Secured Overnight Financing Rate (SOFR), to align interest costs more closely with floating interest rates received on our cash equivalents and investment securities. These swap agreements were qualified and designated as a fair value hedge. Our interest rate swaps are recognized in other assets or other liabilities, as appropriate, in our consolidated balance sheets at fair value as of the reporting date.  Our interest rate swaps are highly effective at reflecting the fair value of our hedged fixed rate senior notes payable. We utilize market-based financing rates, forward yield curves and discount rates in determining fair value of these swaps at each reporting date, a Level 2 measure within the fair value hierarchy. The cumulative, aggregate adjustment to the carrying value of the senior notes was a decrease of approximately $129 million at December 31,