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EQUITY SECURITIES

6 Months Ended

Jun. 30, 2025

Investments, Debt and Equity Securities [Abstract]

EQUITY SECURITIES

AVAILABLE-FOR-SALE FIXED MATURITY SECURITIES

The amortized cost and fair value of available-for-sale fixed maturity securities are shown below:

AS OF JUN. 30, 2025 US$ MILLIONS						Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Allowance for Credit Losses						Fair Value
U.S. treasury and government						$	403					$	4					$	(42)					$	—					$	365
U.S. state and municipal						3,152						65						(35)						—						3,182
Foreign governments						1,903						21						(35)						—						1,889
Corporate debt securities						39,073						818						(396)						(2)						39,493
Residential mortgage-backed securities						1,158						40						(2)						—						1,196
Commercial mortgage-backed securities						3,796						120						(39)						—						3,877
Collateralized debt securities						6,168						115						(62)						(1)						6,220
Total fixed maturity securities						$	55,653					$	1,183					$	(611)					$	(3)					$	56,222

AS OF DEC. 31, 2024 US$ MILLIONS						Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Allowance for Credit Losses						Fair Value
U.S. treasury and government						$	410					$	2					$	(43)					$	—					$	369
U.S. state and municipal						3,280						39						(30)						—						3,289
Foreign governments						2,082						11						(51)						—						2,042
Corporate debt securities						37,312						571						(477)						(26)						37,380
Residential mortgage-backed securities						1,288						28						(5)						(1)						1,310
Commercial mortgage-backed securities						3,259						91						(30)						—						3,320
Collateralized debt securities						6,020						103						(31)						—						6,092
Total fixed maturity securities						$	53,651					$	845					$	(667)					$	(27)					$	53,802

The amortized cost and fair value, by contractual maturity, of available-for-sale fixed maturity securities are shown below. Actual maturities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Residential and commercial mortgage-backed securities and collateralized debt securities, which are not due at a single maturity, have been separately presented below.

AS OF JUN. 30, 2025 US$ MILLIONS						Amortized Cost						Fair Value
Due in one year or less						$	1,962					$	1,967
Due after one year through five years						17,482						17,773
Due after five years through ten years						6,963						7,123
Due after ten years						18,124						18,066
						44,531						44,929
Residential mortgage-backed securities						1,158						1,196
Commercial mortgage-backed securities						3,796						3,877
Collateralized debt securities						6,168						6,220
Total						$	55,653					$	56,222

Proceeds from sales of available-for-sale fixed maturity securities, with the related gross realized gains and losses, are shown below:

FOR THE PERIODS ENDED JUN. 30 US$ MILLIONS						Three Months Ended												Six Months Ended
						2025						2024						2025						2024
Proceeds from sales of available-for-sale fixed maturity securities						$	3,853					$	2,617					$	5,903					$	3,729
Gross realized gains						13						9						19						24
Gross realized losses						(65)						(31)						(68)						(37)

The Company has pledged bonds in connection with certain agreements and transactions, such as financing and reinsurance agreements. The carrying value of bonds pledged was $9.6 billion and $8.9 billion as of June 30, 2025 and December 31, 2024, respectively.

In accordance with various regulations, the Company has securities on deposit with regulating authorities with a carrying value of $183 million and $213 million as of June 30, 2025 and December 31, 2024, respectively. There are no restrictions on these assets.

The gross unrealized losses and fair value of available-for-sale fixed maturity securities, aggregated by investment category and the length of time individual securities have been in a continuous unrealized loss position due to market factors are shown below:

						Less than 12 months																		12 months or more																		Total
AS OF JUN. 30, 2025 US$ MILLIONS, EXCEPT NUMBER OF ISSUES						Number of Issues						Gross Unrealized Losses						Fair Value						Number of Issues						Gross Unrealized Losses						Fair Value						Number of Issues						Gross Unrealized Losses						Fair Value
U.S. treasury and government						4						$	(8)					$	18					21						$	(34)					$	101					25						$	(42)					$	119
U.S. state and municipal						140						(17)						788						93						(18)						222						233						(35)						1,010
Foreign governments						37						(16)						702						28						(19)						91						65						(35)						793
Corporate debt securities						803						(149)						5,550						480						(247)						4,053						1,283						(396)						9,603
Residential mortgage-backed securities						38						(1)						138						4						(1)						21						42						(2)						159
Commercial mortgage-backed securities						47						(26)						481						25						(13)						164						72						(39)						645
Collateralized debt securities						124						(27)						1,406						20						(35)						474						144						(62)						1,880
Total						1,193						$	(244)					$	9,083					671						$	(367)					$	5,126					1,864						$	(611)					$	14,209

						Less than 12 months																		12 months or more																		Total
AS OF DEC. 31, 2024 US$ MILLIONS, EXCEPT NUMBER OF ISSUES						Number of Issues						Gross Unrealized Losses						Fair Value						Number of Issues						Gross Unrealized Losses						Fair Value						Number of Issues						Gross Unrealized Losses						Fair Value
U.S. treasury and government						6						$	(7)					$	54					19						$	(36)					$	87					25						$	(43)					$	141
U.S. state and municipal						174						(20)						851						190						(10)						280						364						(30)						1,131
Foreign governments						30						(38)						1,520						28						(13)						49						58						(51)						1,569
Corporate debt securities						1,669						(172)						7,199						590						(305)						4,949						2,259						(477)						12,148
Residential mortgage-backed securities						95						(4)						227						16						(1)						61						111						(5)						288
Commercial mortgage-backed securities						104						(25)						667						9						(5)						27						113						(30)						694
Collateralized debt securities						179						(29)						1,182						15						(2)						35						194						(31)						1,217
Total						2,257						$	(295)					$	11,700					867						$	(372)					$	5,488					3,124						$	(667)					$	17,188

The unrealized losses as of June 30, 2025 and December 31, 2024 are principally related to the timing of the purchases of certain securities, which carry less yield than those available as of those dates. Approximately 96% and 89% of the fair value of fixed maturity securities shown above as of June 30, 2025 and December 31, 2024, respectively, are rated investment grade.

The Company expects to recover the amortized cost on all securities except for those securities on which it recognized an allowance for credit loss. In addition, as the Company did not have the intent to sell fixed maturity securities with unrealized losses and it was not more likely than not that the Company would be required to sell these securities prior to recovery of the amortized cost, which may be maturity, the Company did not write down these investments to fair value through the statements of operations.

Allowance for Credit Losses

Several assumptions and underlying estimates are made in the evaluation of allowance for credit loss. Examples include financial condition, near-term and long-term prospects of the issue or issuer, including relevant industry conditions and trends and implications of rating agency actions and offering prices. Based on this evaluation, unrealized losses on available-for-sale securities where an allowance for credit loss was not recorded were concentrated within the financials sector as of June 30, 2025 and December 31, 2024.

The rollforward of the allowance for credit losses for available-for-sale fixed maturity securities is shown below for the three and six months ended June 30, 2025 and 2024:

FOR THE PERIODS ENDED JUN. 30, 2025 US$ MILLIONS												Corporate Debt Securities						Residential Mortgage Backed Securities						Commercial Mortgage Backed Securities						Collateralized Debt Securities						Total
Balance as of January 1, 2025												$	(26)					$	(1)					$	—					$	—					$	(27)
Credit losses recognized on securities for which credit losses were not previously recorded												(7)						—						—						(1)						(8)
Reductions for securities sold during the period												15						—						—						—						15
Changes in previously recorded allowance												8						—						—						—						8
Balance as of March 31, 2025												$	(10)					$	(1)					$	—					$	(1)					$	(12)
Credit losses recognized on securities for which credit losses were not previously recorded												(3)						—						—						(1)						(4)
Changes in previously recorded allowance												11						1						—						1						13
Balance as of June 30, 2025												$	(2)					$	—					$	—					$	(1)					$	(3)

FOR THE PERIODS ENDED JUN. 30, 2024 US$ MILLIONS												Corporate Debt Securities						Residential Mortgage Backed Securities						Commercial Mortgage Backed Securities						Collateralized Debt Securities						Total
Balance as of January 1, 2024												$	(19)					$	(1)					$	(6)					$	(4)					$	(30)
Credit losses recognized on securities for which credit losses were not previously recorded												(12)						—						—						—						(12)
Reductions for securities sold during the period												1						—						—						—						1
Changes in previously recorded allowance												6						1						—						2						9
Balance as of March 31, 2024												$	(24)					$	—					$	(6)					$	(2)					$	(32)
Credit losses recognized on securities for which credit losses were not previously recorded												(14)						—						—						—						(14)
Changes in previously recorded allowance												3						—						—						—						3
Balance as of June 30, 2024												$	(35)					$	—					$	(6)					$	(2)					$	(43)

No accrued interest receivables were written off as of June 30, 2025 and December 31, 2024.

EQUITY SECURITIES

The net gains (losses) on equity securities recognized in “Investment related gains (losses)” on the statements of operations are shown below:

FOR THE PERIODS ENDED JUN. 30 US$ MILLIONS						Three Months Ended												Six Months Ended
						2025						2024						2025						2024
Unrealized gains (losses) on equity securities						$	477					$	(144)					$	217					$	(124)
Net gains (losses) on equity securities sold						(7)						172						71						172
Net gains on equity securities						$	470					$	28					$	288					$	48

Equity securities by market sector distribution are shown below, based on carrying value:

AS OF						June 30, 2025						December 31, 2024
Consumer goods						1		%				5		%
Education						4		%				7		%
Energy and utilities						7		%				5		%
Finance						75		%				62		%
Healthcare						1		%				3		%
Industrials						6		%				7		%
Information technology						5		%				10		%
Other						1		%				1		%
Total						100		%				100		%

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The entire disclosure for investments in certain debt and equity securities.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 940
-SubTopic 320
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/940-320/tableOfContent

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Name Regulation S-K (SK)
-Number 229
-Section 1403
-Paragraph b
-Publisher SEC

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
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