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Investments
 9 Months Ended
Sep. 30, 2025
Investments, Debt and Equity Securities [Abstract]  
Investments INVESTMENTS
The following tables present the composition of our investment portfolio by major security type:
($ in millions)CostGross
Unrealized
Gains		Gross
Unrealized
Losses		Net
Holding
Period
Gains
(Losses)		Fair
Value		% of
Total
Fair
Value
September 30, 2025
Available-for-sale securities:
Fixed maturities:
U.S. government obligations$51,021 $731 $(413)$0 $51,339 54.3 %
State and local government obligations3,320 20 (65)0 3,275 3.5 
Foreign government obligations16 0 0 0 16 0 
Corporate and other debt securities18,621 270 (86)12 18,817 19.9 
Residential mortgage-backed securities2,979 26 (6)1 3,000 3.2 
Commercial mortgage-backed securities5,916 17 (247)0 5,686 6.0 
Other asset-backed securities6,374 35 (33)0 6,376 6.7 
Total fixed maturities88,247 1,099 (850)13 88,509 93.6 
Short-term investments1,515 0 0 0 1,515 1.6 
Total available-for-sale securities89,762 1,099 (850)13 90,024 95.2 
Equity securities:
Nonredeemable preferred stocks454 0 0 (16)438 0.5 
Common equities808 0 0 3,239 4,047 4.3 
Total equity securities1,262 0 0 3,223 4,485 4.8 
Total portfolio1
$91,024 $1,099 $(850)$3,236 $94,509 100.0 %
($ in millions)CostGross
Unrealized
Gains		Gross
Unrealized
Losses		Net
Holding
Period
Gains
(Losses)		Fair
Value		% of
Total
Fair
Value
September 30, 2024
Available-for-sale securities:
Fixed maturities:
U.S. government obligations$44,231 $772 $(574)$0 $44,429 56.0 %
State and local government obligations2,681 10 (90)0 2,601 3.3 
Foreign government obligations17 0 (1)0 16 0 
Corporate and other debt securities14,970 222 (156)0 15,036 18.9 
Residential mortgage-backed securities1,404 24 (6)2 1,424 1.8 
Commercial mortgage-backed securities4,664 4 (377)0 4,291 5.4 
Other asset-backed securities6,628 40 (54)0 6,614 8.3 
Total fixed maturities74,595 1,072 (1,258)2 74,411 93.7 
Short-term investments757 0 0 0 757 1.0 
Total available-for-sale securities75,352 1,072 (1,258)2 75,168 94.7 
Equity securities:
Nonredeemable preferred stocks760 0 0 (25)735 0.9 
Common equities733 0 0 2,764 3,497 4.4 
Total equity securities1,493 0 0 2,739 4,232 5.3 
Total portfolio1
$76,845 $1,072 $(1,258)$2,741 $79,400 100.0 %
($ in millions)CostGross
Unrealized
Gains		Gross
Unrealized
Losses		Net
Holding
Period
Gains
(Losses)		Fair
Value		% of
Total
Fair
Value
December 31, 2024
Available-for-sale securities:
Fixed maturities:
U.S. government obligations$47,103 $36 $(1,151)$0 $45,988 57.3 %
State and local government obligations2,893 2 (117)0 2,778 3.5 
Foreign government obligations16 0 0 0 16 0 
Corporate and other debt securities14,111 65 (215)(7)13,954 17.4 
Residential mortgage-backed securities1,600 9 (11)3 1,601 2.0 
Commercial mortgage-backed securities4,721 7 (376)0 4,352 5.4 
Other asset-backed securities6,682 26 (65)0 6,643 8.3 
Total fixed maturities77,126 145 (1,935)(4)75,332 93.9 
Short-term investments615 0 0 0 615 0.7 
Total available-for-sale securities77,741 145 (1,935)(4)75,947 94.6 
Equity securities:
Nonredeemable preferred stocks756 0 0 (28)728 0.9 
Common equities745 0 0 2,830 3,575 4.5 
Total equity securities1,501 0 0 2,802 4,303 5.4 
Total portfolio1
$79,242 $145 $(1,935)$2,798 $80,250 100.0 %
1 At September 30, 2025 and 2024 and December 31, 2024, we had $523 million, $469 million, and $125 million, respectively, of net unsettled security transactions included in accounts payable, accrued expenses, and other liabilities on our consolidated balance sheets.
The total fair value of the portfolio at September 30, 2025 and 2024 and December 31, 2024, included $4.9 billion, $4.1 billion, and $6.2 billion, respectively, of securities held in a consolidated, non-insurance subsidiary of the holding company, net of unsettled security transactions. A portion of the investments held at December 31, 2024 were sold and proceeds were used to pay our common share dividends in January 2025; see Note 9 – Dividends for additional information.
At September 30, 2025, bonds and certificates of deposit in the principal amount of $788 million were on deposit to meet state insurance regulatory requirements. We did not hold any securities of any one issuer, excluding U.S. government obligations, with an aggregate cost or fair value exceeding 10% of total shareholders’ equity at September 30, 2025 or 2024, or December 31, 2024. At September 30, 2025, we did not hold any debt securities that were non-income producing during the preceding 12 months.
Hybrid Securities Certain securities in our fixed-maturity portfolio are accounted for as hybrid securities because they contain embedded derivatives that are not deemed to be clearly and closely related to the host investments. These securities are reported at fair value:
 September 30,
(millions)20252024December 31, 2024
Fixed Maturities:
Corporate and other debt securities$696 $637 $608 
Residential mortgage-backed securities642 369 479 
Other asset-backed securities0 3 1 
Total hybrid securities$1,338 $1,009 $1,088 
Since the embedded derivatives (e.g., change-in-control put option, debt-to-equity conversion, or any other feature unrelated to the credit quality or risk of default of the issuer that could impact the amount or timing of our expected future cash flows) do not have observable intrinsic values, we use the fair value option to record the changes in fair value of these securities through income as a component of net realized gains (losses).
Fixed Maturities The composition of fixed maturities by maturity at September 30, 2025, was:
(millions)CostFair Value
Less than one year$8,676 $8,668 
One to five years53,046 53,116 
Five to ten years26,249 26,446 
Ten years or greater276 279 
Total$88,247 $88,509 
Asset-backed securities are classified in the maturity distribution table above based upon their projected cash flows. All other securities that do not have a single maturity date are reported based upon expected average maturity. Contractual maturities may differ from expected maturities because the issuers of the securities may have the right to call or prepay obligations.
Gross Unrealized Losses The following tables show the composition of gross unrealized losses by major security type and by the length of time that individual securities have been in a continuous unrealized loss position:
 Total No. of Sec.Total
Fair
Value		Gross
Unrealized
Losses		Less than 12 Months12 Months or Greater
($ in millions)No. of Sec.Fair
Value		Gross Unrealized
Losses		No. of Sec.Fair
 Value		Gross Unrealized
Losses
September 30, 2025
U.S. government obligations71 $11,145 $(413)7 $1,777 $(3)64 $9,368 $(410)
State and local government obligations251 1,557 (65)40 188 (1)211 1,369 (64)
Corporate and other debt securities138 3,503 (86)24 718 (4)114 2,785 (82)
Residential mortgage-backed securities28 283 (6)9 186 (1)19 97 (5)
Commercial mortgage-backed securities138 2,879 (247)16 375 (1)122 2,504 (246)
Other asset-backed securities50 1,128 (33)13 228 (1)37 900 (32)
Total fixed maturities676 $20,495 $(850)109 $3,472 $(11)567 $17,023 $(839)
 Total No. of Sec.Total
Fair
Value		Gross
Unrealized
Losses		Less than 12 Months12 Months or Greater
($ in millions)No. of Sec.Fair
Value		Gross Unrealized
Losses		No. of Sec.Fair
 Value		Gross Unrealized
Losses
September 30, 2024
U.S. government obligations86 $12,919 $(574)3 $2,069 $(3)83 $10,850 $(571)
State and local government obligations302 1,779 (90)44 208 0 258 1,571 (90)
Foreign government obligations1 16 (1)0 0 0 1 16 (1)
Corporate and other debt securities224 5,251 (156)14 426 (3)210 4,825 (153)
Residential mortgage-backed securities33 244 (6)4 185 0 29 59 (6)
Commercial mortgage-backed securities177 3,750 (377)5 170 0 172 3,580 (377)
Other asset-backed securities80 1,531 (54)16 353 0 64 1,178 (54)
Total fixed maturities903 $25,490 $(1,258)86 $3,411 $(6)817 $22,079 $(1,252)
 Total No. of Sec.Total
Fair
Value		Gross
Unrealized
Losses		Less than 12 Months12 Months or Greater
($ in millions)No. of Sec.Fair
Value		Gross Unrealized
Losses		No. of Sec.Fair
 Value		Gross Unrealized
Losses
December 31, 2024
U.S. government obligations113 $38,782 $(1,151)39 $30,257 $(418)74 $8,525 $(733)
State and local government obligations379 2,339 (117)127 783 (6)252 1,556 (111)
Corporate and other debt securities304 7,034 (215)122 2,935 (33)182 4,099 (182)
Residential mortgage-backed securities40 428 (11)12 377 (4)28 51 (7)
Commercial mortgage-backed securities153 3,294 (376)8 264 (16)145 3,030 (360)
Other asset-backed securities84 1,907 (65)34 912 (8)50 995 (57)
Total fixed maturities1,073 $53,784 $(1,935)342 $35,528 $(485)731 $18,256 $(1,450)
A review of the securities in an unrealized loss position indicated, at the end of each period presented, that the issuers were current with respect to their interest obligations and that there was no evidence of deterioration of the current cash flow projections that would indicate we would not receive the remaining principal at maturity.
Allowance For Credit and Uncollectible Losses We are required to measure the amount of potential credit losses for all fixed-maturity securities in an unrealized loss position. We did not record any allowances for credit losses or any write-offs for credit losses deemed to be uncollectible during the first nine months of 2025 or 2024, and did not have a material credit loss allowance balance as of September 30, 2025 and 2024, or December 31, 2024. We considered several factors and inputs related to the individual securities as part of our analysis. The methodology and significant inputs used to measure the amount of credit losses in our portfolio included:
•current performance indicators on the business model or underlying assets (e.g., delinquency rates, foreclosure rates, and default rates);
•credit support (via current levels of subordination);
•historical credit ratings; and
•updated cash flow expectations based upon these performance indicators.

We initially reviewed securities in a loss position to determine whether we intended, or if it was more likely than not that we would be required, to sell any of the securities prior to the recovery of their respective cost bases (which could be maturity). If we were more likely than not, or intended, to sell prior to a potential recovery, we would write off the unrealized loss. No unrealized loss write offs were recorded during the nine months ended September 30, 2025 or 2024.


For those securities that we determined we were not likely to, or did not intend to, sell prior to a potential recovery, we performed additional analysis to determine if the loss was credit related. For securities with a potential credit-related loss, we calculated the net present value (NPV) of the cash flows expected (i.e., expected recovery value) using the current book yield for each security. The NPV was then compared to the applicable security’s current amortized cost basis to determine if a credit loss existed. If the NPV was below the amortized cost basis, and deemed material for any specific security, or in the aggregate, a credit loss would be recognized and either a new allowance for credit losses would be recorded, or adjustments would be made to a previous allowance. All changes to new or existing allowances for credit losses are recorded to net realized gains (losses) on securities.
As of September 30, 2025 and 2024, and December 31, 2024, we believe that none of the unrealized losses on our fixed-maturity securities were related to material credit losses on any specific securities, or in the aggregate. We continue to expect all the securities in our fixed-maturity portfolio will pay their principal and interest obligations.
In addition, we reviewed our accrued investment income outstanding on those securities in an unrealized loss position at September 30, 2025 and 2024, and December 31, 2024, to determine if the accrued interest amounts were uncollectible. Based on our analysis, we believe the issuers have sufficient liquidity and capital reserves to meet their current interest, and future principal obligations and, therefore, did not write off any accrued income as uncollectible at September 30, 2025 and 2024, or December 31, 2024.
Realized Gains (Losses) The components of net realized gains (losses) for the three and nine months ended September 30, were:
 Three MonthsNine Months
(millions)2025202420252024
Gross realized gains on security sales
Available-for-sale securities:
U.S. government obligations$1 $43 $78 $44 
Corporate and other debt securities6 2 9 6 
Residential mortgage-backed securities0 0 1 1 
Total available-for-sale securities7 45 88 51 
Equity securities:
Nonredeemable preferred stocks1 0 3 0 
Common equities11 14 50 26 
Total equity securities12 14 53 26 
Subtotal gross realized gains on security sales19 59 141 77 
Gross realized losses on security sales
Available-for-sale securities:
U.S. government obligations0 (2)(78)(329)
State and local government obligations0 (1)(2)(1)
Corporate and other debt securities(4)(5)(7)(43)
Commercial mortgage-backed securities0 0 (10)(15)
Total available-for-sale securities(4)(8)(97)(388)
Equity securities:
Nonredeemable preferred stocks(1)(7)(6)(18)
Common equities(2)(12)(6)(12)
Total equity securities(3)(19)(12)(30)
Subtotal gross realized losses on security sales(7)(27)(109)(418)
Net realized gains (losses) on security sales
Available-for-sale securities:
U.S. government obligations1 41 0 (285)
State and local government obligations0 (1)(2)(1)
Corporate and other debt securities2 (3)2 (37)
Residential mortgage-backed securities0 0 1 1 
Commercial mortgage-backed securities0 0 (10)(15)
Total available-for-sale securities3 37 (9)(337)
Equity securities:
Nonredeemable preferred stocks0 (7)(3)(18)
Common equities9 2 44 14 
Total equity securities9 (5)41 (4)
Subtotal net realized gains (losses) on security sales12 32 32 (341)
Other assets
Gain0 36 0 36 
Net holding period gains (losses)
Hybrid securities3 20 17 31 
Equity securities280 200 421 591 
Subtotal net holding period gains (losses)283 220 438 622 
Total net realized gains (losses) on securities$295 $288 $470 $317 
Realized gains (losses) on securities sold are computed using the first-in, first-out method. We had minimal sales activity during the third quarter of 2025. During the first nine months of 2025 and the third quarter and first nine months of 2024, the majority of our security sales were U.S. Treasury Notes that were sold for duration management. We also selectively sold securities that we viewed as having less attractive risk/reward profiles during the first nine months of 2025 and 2024.
The following table reflects our holding period realized gains (losses) recognized on equity securities held at the respective quarter ends:
Three MonthsNine Months
(millions)2025202420252024
Total net gains (losses) recognized during the period on equity securities$289 $195 $462 $587 
Less: Net gains (losses) recognized on equity securities sold during the period9 (5)41 (4)
Net holding period gains (losses) recognized during the period on equity securities held at period end$280 $200 $421 $591 
Net Investment Income The components of net investment income for the three and nine months ended September 30, were: 
Three MonthsNine Months
(millions)2025202420252024
Available-for-sale securities:
Fixed maturities:
U.S. government obligations$470 $396 $1,314 $1,064 
State and local government obligations24 16 64 42 
Corporate and other debt securities214 155 593 417 
Residential mortgage-backed securities38 14 95 27 
Commercial mortgage-backed securities63 49 175 142 
Other asset-backed securities78 83 246 243 
Total fixed maturities887 713 2,487 1,935 
Short-term investments20 9 66 45 
Total available-for-sale securities907 722 2,553 1,980 
Equity securities:
Nonredeemable preferred stocks6 9 19 30 
Common equities11 8 37 32 
Total equity securities17 17 56 62 
Investment income924 739 2,609 2,042 
Investment expenses(10)(7)(26)(20)
Net investment income$914 $732 $2,583 $2,022 
On a year-over-year basis, investment income (interest and dividends) increased 25% and 28% for the three and nine months ended September 30, 2025, respectively, compared to the same periods last year. The increases primarily reflect growth in invested assets and an increase in recurring investment book yield. The book yield increase primarily reflects investing new cash from insurance operations, and proceeds from maturing bonds, in higher coupon rate securities.