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Investments (Tables) | 9 Months Ended
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Sep. 30, 2025
Investments, Debt and Equity Securities [Abstract] |
Marketable Securities | 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.
Fixed Maturity Securities and Short Term Investments by Security Type | 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.
Fixed-Maturity Securities Gross Unrealized Loss by Length of Time | 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.
Investments Classified by Contractual Maturity Date | 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 |
Net Investment Income | 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.
Net 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 |
Rollforward of Credit Losses for Available-for-sale Fixed-Maturity Securities | 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 |

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