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Investments | 9 Months Ended
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Sep. 30, 2025
Investments, Debt and Equity Securities [Abstract] |
Investments | Investments The largest component of the investment portfolio is fixed-maturity securities, the majority of which are investment grade and managed by outside managers. The Company has established investment guidelines for these investment managers regarding credit quality, exposure to a particular sector and exposure to a particular obligor within a sector. Investment Portfolio Carrying Value
| As of
| September 30, 2025 |  | December 31, 2024
| (in millions)
Fixed-maturity securities, available-for-sale | $ | 6,278 |  |  | $ | 6,369 |
Fixed-maturity securities, trading | 136 |  |  | 147 |
Short-term investments | 1,332 |  |  | 1,221 |
Other invested assets: |  |  |
Equity method investments: |  |  |
Ownership interest in Sound Point | 414 |  |  | 418 |
Funds and other investments | 587 |  |  | 496 |
Other | 11 |  |  | 12 |
Total (1) | $ | 8,758 |  |  | $ | 8,663 |
____________________ (1) In the investment portfolio, the aggregate carrying value of Sound Point managed investments was $581 million and $569 million as of September 30, 2025 and December 31, 2024, respectively, excluding the Company’s ownership interest in Sound Point and certain investments in funds that are accounted for as CIVs. As of September 30, 2025 and December 31, 2024, 8.8% and 12.6%, respectively, of available-for-sale fixed-maturity securities were either rated BIG or not rated, primarily consisting of Loss Mitigation Securities, collateralized loan obligation (CLO) equity tranches and liquidity bonds issued by a U.K. regulated utility. As of September 30, 2025 and December 31, 2024, the carrying value of Loss Mitigation Securities was $140 million and $479 million, respectively. In July 2025, the Company’s largest BIG exposure in the investment portfolio, which was obtained as a part of a loss mitigation strategy, with an aggregate carrying value of $408 million as of June 30, 2025 reached its final resolution after many years of negotiation and was paid down after liquidation of the trust assets. The Company received $459 million in connection with this resolution, including principal, accrued interest and other expected recoveries. This resolution did not have a significant effect on the condensed consolidated statements of operations. As of September 30, 2025 and December 31, 2024, the carrying value of CLO equity tranches was $242 million and $277 million, respectively. Fixed-maturity securities classified as trading securities primarily include contingent value instruments (CVIs) and are not rated. The investment portfolio includes $945 million in alternative investments primarily consisting of (i) CLO equity securities classified as available-for-sale fixed-maturity securities, and (ii) $598 million of investments across various asset classes that are reported in other invested assets. In addition, as of September 30, 2025 and December 31, 2024, $45 million and $33 million, respectively, of the Company’s total alternative investments was invested in a Sound Point managed fund which was reported in “assets of CIVs,” “other liabilities” and “nonredeemable noncontrolling interests.” See Note 8, Variable Interest Entities. The Company’s alternative investment commitments as of September 30, 2025 include $563 million in unfunded commitments which together with its $945 million in funded commitments total $1.5 billion, including a $1 billion commitment to invest in Sound Point managed alternative investments, subject to certain conditions precedent. Capital allocated to alternative investments was committed to several funds pursuing various strategies, including private healthcare investing, asset-based/specialty finance and CLOs. See Note 1, Business and Basis of Presentation, for a description of the Company’s alternative investments agreement with Sound Point. Accrued investment income, which is reported in “other assets,” was $70 million as of September 30, 2025 and $64 million as of December 31, 2024. Available-for-Sale Fixed-Maturity Securities by Security Type As of September 30, 2025
Security Type |  | Percent of Total (1) |  | Amortized Cost |  | Allowance for Credit Losses |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value
|  | (dollars in millions)
Obligations of state and political subdivisions |  | 28 | % |  | $ | 1,808 |  |  | $ | (13) |  |  | $ | 36 |  |  | $ | (76) |  |  | $ | 1,755 |
U.S. government and agencies |  | 1 |  |  | 51 |  |  | — |  |  | 1 |  |  | (4) |  |  | 48 |
Corporate securities (2) |  | 46 |  |  | 2,977 |  |  | (7) |  |  | 73 |  |  | (120) |  |  | 2,923 |
Mortgage-backed securities (3): |  |  |  |  |  |  |  |  |  |  |  |
RMBS |  | 10 |  |  | 670 |  |  | (24) |  |  | 8 |  |  | (51) |  |  | 603 |
Commercial mortgage-backed securities (CMBS) |  | 3 |  |  | 184 |  |  | — |  |  | 2 |  |  | (1) |  |  | 185 |
Asset-backed securities: |  |  |  |  |  |  |  |  |  |  |  |
CLOs |  | 8 |  |  | 506 |  |  | (10) |  |  | 5 |  |  | (29) |  |  | 472 |
Other (4) |  | 3 |  |  | 196 |  |  | — |  |  | 3 |  |  | — |  |  | 199 |
Non-U.S. government securities |  | 1 |  |  | 100 |  |  | — |  |  | 2 |  |  | (9) |  |  | 93 |
Total available-for-sale fixed-maturity securities |  | 100 | % |  | $ | 6,492 |  |  | $ | (54) |  |  | $ | 130 |  |  | $ | (290) |  |  | $ | 6,278 |
Available-for-Sale Fixed-Maturity Securities by Security Type As of December 31, 2024
Security Type |  | Percent of Total (1) |  | Amortized Cost |  | Allowance for Credit Losses |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value
|  | (dollars in millions)
Obligations of state and political subdivisions |  | 30 | % |  | $ | 2,032 |  |  | $ | (14) |  |  | $ | 25 |  |  | $ | (103) |  |  | $ | 1,940 |
U.S. government and agencies |  | 1 |  |  | 72 |  |  | — |  |  | 1 |  |  | (6) |  |  | 67 |
Corporate securities (2) |  | 38 |  |  | 2,586 |  |  | (7) |  |  | 9 |  |  | (206) |  |  | 2,382 |
Mortgage-backed securities (3): |  |  |  |  |  |  |  |  |  |  |  |
RMBS |  | 9 |  |  | 657 |  |  | (21) |  |  | 2 |  |  | (71) |  |  | 567 |
CMBS |  | 3 |  |  | 189 |  |  | — |  |  | — |  |  | (3) |  |  | 186 |
Asset-backed securities: |  |  |  |  |  |  |  |  |  |  |  |
CLOs |  | 9 |  |  | 615 |  |  | (1) |  |  | 6 |  |  | (9) |  |  | 611 |
Other (4) |  | 9 |  |  | 593 |  |  | (17) |  |  | 1 |  |  | (30) |  |  | 547 |
Non-U.S. government securities |  | 1 |  |  | 83 |  |  | — |  |  | — |  |  | (14) |  |  | 69 |
Total available-for-sale fixed-maturity securities |  | 100 | % |  | $ | 6,827 |  |  | $ | (60) |  |  | $ | 44 |  |  | $ | (442) |  |  | $ | 6,369 |
____________________ (1)Percentages are based on amortized cost. (2)Corporate securities include securities issued by taxable universities and hospitals. (3)U.S. government-agency obligations represented 74% and 68% of mortgage-backed securities as of September 30, 2025 and December 31, 2024, respectively, based on fair value. (4)This category includes an investment in an affiliated entity with amortized cost of $48 million and $41 million, and fair value of $49 million and $42 million, as of September 30, 2025 and December 31, 2024, respectively. Gross Unrealized Loss by Length of Time for Available-for-Sale Fixed-Maturity Securities for Which a Credit Loss was Not Recorded As of September 30, 2025
| Less than 12 months |  | 12 months or more |  | Total
| Fair Value |  | Gross Unrealized Loss |  | Fair Value |  | Gross Unrealized Loss |  | Fair Value |  | Gross Unrealized Loss
| (dollars in millions)
Obligations of state and political subdivisions | $ | 193 |  |  | $ | (2) |  |  | $ | 822 |  |  | $ | (74) |  |  | $ | 1,015 |  |  | $ | (76) |
U.S. government and agencies | 5 |  |  | — |  |  | 12 |  |  | (4) |  |  | 17 |  |  | (4) |
Corporate securities | 150 |  |  | (1) |  |  | 858 |  |  | (93) |  |  | 1,008 |  |  | (94) |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |
RMBS | 20 |  |  | — |  |  | 131 |  |  | (7) |  |  | 151 |  |  | (7) |
CMBS | 36 |  |  | — |  |  | 59 |  |  | (1) |  |  | 95 |  |  | (1) |
Asset-backed securities: |  |  |  |  |  |  |  |  |  |  |
CLOs | 128 |  |  | (8) |  |  | 34 |  |  | — |  |  | 162 |  |  | (8) |
Other | 34 |  |  | — |  |  | 10 |  |  | — |  |  | 44 |  |  | — |
Non-U.S. government securities | 32 |  |  | — |  |  | 19 |  |  | (9) |  |  | 51 |  |  | (9) |
Total | $ | 598 |  |  | $ | (11) |  |  | $ | 1,945 |  |  | $ | (188) |  |  | $ | 2,543 |  |  | $ | (199) |
Number of securities (1) |  |  | 194 |  |  |  |  | 905 |  |  |  |  | 1,083 |
Gross Unrealized Loss by Length of Time for Available-for-Sale Fixed-Maturity Securities for Which a Credit Loss was Not Recorded As of December 31, 2024
| Less than 12 months |  | 12 months or more |  | Total
| Fair Value |  | Gross Unrealized Loss |  | Fair Value |  | Gross Unrealized Loss |  | Fair Value |  | Gross Unrealized Loss
| (dollars in millions)
Obligations of state and political subdivisions | $ | 624 |  |  | $ | (7) |  |  | $ | 964 |  |  | $ | (96) |  |  | $ | 1,588 |  |  | $ | (103) |
U.S. government and agencies | 5 |  |  | — |  |  | 28 |  |  | (6) |  |  | 33 |  |  | (6) |
Corporate securities | 762 |  |  | (20) |  |  | 1,046 |  |  | (150) |  |  | 1,808 |  |  | (170) |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |
RMBS | 255 |  |  | (4) |  |  | 123 |  |  | (10) |  |  | 378 |  |  | (14) |
CMBS | 83 |  |  | — |  |  | 103 |  |  | (3) |  |  | 186 |  |  | (3) |
Asset-backed securities: |  |  |  |  |  |  |  |  |  |  |
CLOs | 151 |  |  | (5) |  |  | 107 |  |  | (1) |  |  | 258 |  |  | (6) |
Other | 60 |  |  | (1) |  |  | 16 |  |  | — |  |  | 76 |  |  | (1) |
Non-U.S. government securities | 35 |  |  | (3) |  |  | 30 |  |  | (11) |  |  | 65 |  |  | (14) |
Total | $ | 1,975 |  |  | $ | (40) |  |  | $ | 2,417 |  |  | $ | (277) |  |  | $ | 4,392 |  |  | $ | (317) |
Number of securities (1) |  |  | 569 |  |  |  |  | 1,065 |  |  |  |  | 1,591 |
___________________ (1) The number of securities does not add across because lots consisting of the same securities have been purchased at different times and appear in both categories above (i.e., less than 12 months and 12 months or more). If a security appears in both categories, it is counted only once in the total column. The Company considered the credit quality, cash flows, interest rate movements, ability to hold a security to recovery and intent to sell a security in determining whether a security had a credit loss. The Company has determined that the unrealized losses recorded as of September 30, 2025 and December 31, 2024 were primarily related to higher interest rates rather than credit quality. As of September 30, 2025, the Company did not intend to and was not required to sell investments in an unrealized loss position prior to the expected recovery in value. As of September 30, 2025, of the securities in an unrealized loss position for which an allowance for credit loss was not recorded, 277 securities had unrealized losses in excess of 10% of their carrying value, whereas as of December 31, 2024, 438 securities had unrealized losses in excess of 10% of their carrying value. The total unrealized loss for these securities was $151 million as of September 30, 2025 and $223 million as of December 31, 2024. The amortized cost and estimated fair value of available-for-sale fixed-maturity securities by contractual maturity as of September 30, 2025 are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Distribution of Available-for-Sale Fixed-Maturity Securities by Contractual Maturity As of September 30, 2025
| Amortized Cost |  | Estimated Fair Value
| (in millions)
Due within one year | $ | 214 |  |  | $ | 216 |
Due after one year through five years | 1,475 |  |  | 1,485 |
Due after five years through 10 years | 2,003 |  |  | 1,981 |
Due after 10 years | 1,946 |  |  | 1,808 |
Mortgage-backed securities: |  |  |
RMBS | 670 |  |  | 603 |
CMBS | 184 |  |  | 185 |
Total | $ | 6,492 |  |  | $ | 6,278 |
Based on fair value, fixed-maturity securities, short-term investments and cash that are either held in trust for the benefit of third-party ceding insurers in accordance with statutory requirements, placed on deposit to fulfill state licensing requirements or otherwise pledged or restricted totaled $82 million and $79 million as of September 30, 2025 and December 31, 2024, respectively. The investment portfolio also contains securities that are held in trust by certain AGL subsidiaries or are otherwise restricted for the benefit of other AGL subsidiaries in accordance with statutory and regulatory requirements with a fair value of $789 million and $1,135 million as of September 30, 2025 and December 31, 2024, respectively. Income from Investments The components of income derived from the investment portfolio are presented in the following tables. Income from Investments
| Third Quarter |  | Nine Months
| 2025 |  | 2024 |  | 2025 |  | 2024
| (in millions)
Investment income: |  |  |  |  |  |  |
Fixed-maturity securities, available-for-sale (1) | $ | 81 |  |  | $ | 62 |  |  | $ | 232 |  |  | $ | 184 |
Short-term investments | 14 |  |  | 21 |  |  | 39 |  |  | 66 |
Other invested assets | 1 |  |  | — |  |  | 3 |  |  | — |
Investment income | 96 |  |  | 83 |  |  | 274 |  |  | 250 |
Investment expenses | (2) |  |  | (1) |  |  | (4) |  |  | (3) |
Net investment income | $ | 94 |  |  | $ | 82 |  |  | $ | 270 |  |  | $ | 247 |
Fair value gains (losses) on trading securities (2) | $ | 8 |  |  | $ | 9 |  |  | $ | 11 |  |  | $ | 52 |
Equity in earnings (losses) of investees: |  |  |  |  |  |  |
Ownership interest in Sound Point | $ | — |  |  | $ | 4 |  |  | $ | 12 |  |  | $ | 5 |
Funds and other investments | 20 |  |  | 14 |  |  | 64 |  |  | 42 |
Equity in earnings (losses) of investees | $ | 20 |  |  | $ | 18 |  |  | $ | 76 |  |  | $ | 47 |
____________________ (1) Amounts include $7 million of investment income on Loss Mitigation Securities for both third quarter 2025 and third quarter 2024, and $21 million for both nine months 2025 and nine months 2024. The increase in investment income from available-for-sale fixed-maturity securities in third quarter 2025 and nine months 2025 is primarily due to investment income on CLO equity tranches in the available-for-sale portfolio. Certain CLO equity tranche investments were reclassified to the available-for-sale fixed-maturity portfolio in the fourth quarter of 2024, with interest income now reported in net investment income, and changes in fair value reported in other comprehensive income (OCI). The Company had previously held the CLO equity tranches in a Sound Point managed fund with changes in net asset value (NAV) reported in “equity in earnings (losses) of investees.” (2) Fair value gains on trading securities pertaining to securities still held as of September 30, 2025 were $7 million for third quarter 2025 and $9 million for nine months 2025. Fair value gains on trading securities pertaining to securities still held as of September 30, 2024 were $7 million for third quarter 2024 and $26 million for nine months 2024. A majority of the trading securities are Puerto Rico CVIs. In 2022, as a result of the resolution of certain defaulting Puerto Rico exposures, the Company received Puerto Rico CVIs, along with other consideration. The CVIs are intended to provide creditors with additional recoveries tied to the outperformance of the Puerto Rico 5.5% sales and use tax receipts against May 2020 certified fiscal plan projections, subject to annual and lifetime caps. As of September 30, 2025, the remaining CVIs had a fair value of $125 million. The Company may sell in the future any CVIs it continues to hold. Realized Investment Gains (Losses) The table below presents the components of net realized investment gains (losses). Realized gains and losses on sales of investments are determined using the specific identification method. Net Realized Investment Gains (Losses)
| Third Quarter |  | Nine Months
| 2025 |  | 2024 |  | 2025 |  | 2024
| (in millions)
Gross realized gains on sales of available-for-sale securities | $ | 1 |  |  | $ | — |  |  | $ | 5 |  |  | $ | 2 |
Gross realized losses on sales of available-for-sale securities | (1) |  |  | (4) |  |  | (10) |  |  | (11) |
Net foreign currency gains (losses) | 1 |  |  | — |  |  | — |  |  | (2) |
Change in the allowance for credit losses and intent to sell | (12) |  |  | 3 |  |  | (25) |  |  | 11 |
Other net realized gains (losses) | 1 |  |  | 1 |  |  | (2) |  |  | 2 |
Net realized investment gains (losses) | $ | (10) |  |  | $ | — |  |  | $ | (32) |  |  | $ | 2 |
The proceeds from sales of fixed-maturity securities classified as available-for-sale were $106 million in third quarter 2025, $87 million in third quarter 2024, $533 million in nine months 2025 and $575 million in nine months 2024. The following table presents the roll forward of the allowance for the credit losses on available-for-sale fixed-maturity securities. Roll Forward of Allowance for Credit Losses for Available-for-Sale Fixed-Maturity Securities
| Third Quarter |  | Nine Months
| 2025 |  | 2024 |  | 2025 |  | 2024
| (in millions)
Balance, beginning of period | $ | 47 |  |  | $ | 69 |  |  | $ | 60 |  |  | $ | 77 |
Additions for securities for which credit losses were not previously recognized | 1 |  |  | 2 |  |  | 11 |  |  | 2 |
Additions (reductions) for securities for which credit losses were previously recognized | 11 |  |  | (5) |  |  | 13 |  |  | (13) |
Write-offs charged against the allowance | (5) |  |  | — |  |  | (30) |  |  | — |
Balance, end of period | $ | 54 |  |  | $ | 66 |  |  | $ | 54 |  |  | $ | 66 |
Credit losses for third quarter 2025 and nine months 2025 were primarily associated with alternative investments. Credit losses for third quarter 2024 and nine months 2024 were primarily related to Loss Mitigation Securities. The Company did not purchase any securities with credit deterioration during the periods presented.

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- Definition The entire disclosure for cash, cash equivalent, investment in debt and equity securities, equity method investment, investment in joint venture, and investment classified as other. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 65 -Paragraph 13 -Subparagraph (d)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482477/820-10-65-13 + Details
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