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Investments (Tables)

9 Months Ended

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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