INVESTMENT SECURITIES

9 Months Ended

Sep. 30, 2025

Investments, Debt and Equity Securities [Abstract]

INVESTMENT SECURITIES. Current investment securities include our senior note from AerCap, for which we have adopted the fair value option and matures in the fourth quarter of 2025, with a fair value of $1,008 million and $982 million at September 30, 2025 and December 31, 2024, respectively.

Substantially all of our non-current investment securities are held within our run-off insurance operations and support the long-duration insurance liabilities. The portfolio includes debt securities, of which all are substantially investment grade, and are classified as available-for-sale.


	September 30, 2025								December 31, 2024
	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value		Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value




Debt
U.S. corporate	$	27,489	$	869	$	(1,883)	$	26,475	$	28,456	$	546	$	(2,309)	$	26,692
Non-U.S. corporate	2,871		46		(233)		2,684		2,970		23		(302)		2,691
State and municipal	2,666		55		(190)		2,531		2,409		22		(235)		2,196
Mortgage and asset-backed	5,324		70		(131)		5,262		5,007		47		(183)		4,870
Government and agencies	1,048		5		(103)		951		1,180		4		(118)		1,066
Equity	254		—		—		254		225		—		—		225
Non-current investment securities	$	39,652	$	1,044	$	(2,539)	$	38,158	$	40,248	$	641	$	(3,148)	$	37,741

The amortized cost of debt securities excludes accrued interest of $497 million and $473 million at September 30, 2025 and December 31, 2024, respectively, which is reported in All other current assets.

The estimated fair value of non-current investment securities at September 30, 2025 increased since December 31, 2024, primarily due to lower market yields partially offset by net proceeds from debt/equity securities sales and redemptions.

Total estimated fair value of debt securities in an unrealized loss position were $18,065 million and $21,876 million, of which $15,368 million and $14,011 million had gross unrealized losses of $(2,463) million and $(2,795) million and have been in a loss position for 12 months or more at September 30, 2025 and December 31, 2024, respectively. The majority of our U.S. and non-U.S. corporate securities' gross unrealized losses were in the consumer, electric, technology, communication and energy industries. The majority of our commercial mortgage-backed securities and asset-backed securities in an unrealized loss position have received investment-grade credit ratings from the major rating agencies. For our securities in an unrealized loss position, the losses are not indicative of credit losses, we currently do not intend to sell the investments, and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost basis.


	Three months ended September 30				Nine months ended September 30
	2025		2024		2025		2024
Net unrealized gains (losses) for equity securities with readily determinable fair value (RDFV)	$	9	$	245	$	19	$	308
Proceeds from debt/equity securities sales and redemptions	1,229		2,873		2,453		7,109
Gross realized gains on debt securities	11		48		21		65
Gross realized losses and impairments on debt securities	(12)		(18)		(29)		(53)

Contractual maturities of our debt securities (excluding mortgage and asset-backed securities) at September 30, 2025 are as follows:


	Amortized cost		Estimated fair value
Within one year	$	748	$	749
After one year through five years	3,647		3,746
After five years through ten years	5,383		5,595
After ten years	24,296		22,550

We expect actual maturities to differ from contractual maturities because borrowers have the right to call or prepay certain obligations.

The majority of our non-current investment securities are classified within Level 2, as their valuation is determined based on significant observable inputs. Investments with a fair value of $4,298 million and $5,074 million, including the AerCap senior note, are classified within Level 3, as significant inputs to their valuation models are unobservable at September 30, 2025 and December 31, 2024, respectively. During the nine months ended September 30, 2025, $1,246 million was transferred out of Level 3 related to increases in the observability of external information used in determining fair value in our run-off insurance operations and primarily included certain investments in private placement U.S. and non-U.S. corporate debt securities. During the nine months ended September 30, 2025 there were no significant transfers into Level 3 and during the nine months ended September 30, 2024, there were no significant transfers into or out of Level 3.

In addition to the equity securities described above, we held $2,090 million and $1,439 million of equity securities without RDFV including $1,760 million and $1,410 million within our run-off insurance operations at September 30, 2025 and December 31, 2024, respectively, that are classified within All other assets in our Statement of Financial Position. Fair value adjustments, net of impairments, recorded in income were $57 million and $37 million and $157 million and $100 million for the three and nine months ended September 30, 2025, and 2024, respectively. These are primarily limited partnership investments in private equity, infrastructure and real estate funds that are measured at net asset value per share (or equivalent) as a practical expedient to estimated fair value and are excluded from the fair value hierarchy. These limited partnership investments are generally not eligible for redemption and generally cannot be sold without approval of the general partner. Distributions from each fund will be received as the underlying investments of the funds are liquidated at the discretion of the general partner. These investments are generally considered illiquid and our ability to receive the most recent net asset value in a sale would be determined by external market factors.