XML 27 R11.htm IDEA: XBRL DOCUMENT
v3.24.1.u1

Investments | 3 Months Ended
--- | ---
Mar. 31, 2024
Investments [Abstract] |
Investments | Investments Total investments at March 31, 2024 and December 31, 2023 were as follows:
| March 31, 2024 |  | December 31, 2023
In millions | Current |  | Long-term |  | Total |  | Current |  | Long-term |  | Total
Debt securities available for sale | $ | 3,121 |  |  | $ | 19,505 |  |  | $ | 22,626 |  |  | $ | 3,131 |  |  | $ | 18,582 |  |  | $ | 21,713 |
Mortgage loans | 167 |  |  | 1,195 |  |  | 1,362 |  |  | 128 |  |  | 1,183 |  |  | 1,311 |
Other investments | — |  |  | 3,374 |  |  | 3,374 |  |  | — |  |  | 3,254 |  |  | 3,254 |
Total investments | $ | 3,288 |  |  | $ | 24,074 |  |  | $ | 27,362 |  |  | $ | 3,259 |  |  | $ | 23,019 |  |  | $ | 26,278 |
Debt Securities Debt securities available for sale at March 31, 2024 and December 31, 2023 were as follows:
In millions |  |  |  |  | Amortized Cost (1) |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
March 31, 2024 |  |  |  |  |  |  |  |  |  |  |
Debt securities: |  |  |  |  |  |  |  |  |  |  |
U.S. government securities |  |  |  |  | $ | 2,205 |  |  | $ | 8 |  |  | $ | (66) |  |  | $ | 2,147 |
States, municipalities and political subdivisions |  |  |  |  | 2,029 |  |  | 18 |  |  | (39) |  |  | 2,008 |
U.S. corporate securities |  |  |  |  | 10,951 |  |  | 94 |  |  | (474) |  |  | 10,571 |
Foreign securities |  |  |  |  | 2,594 |  |  | 33 |  |  | (124) |  |  | 2,503 |
Residential mortgage-backed securities |  |  |  |  | 857 |  |  | 5 |  |  | (62) |  |  | 800 |
Commercial mortgage-backed securities |  |  |  |  | 1,121 |  |  | 8 |  |  | (93) |  |  | 1,036 |
Other asset-backed securities |  |  |  |  | 3,533 |  |  | 25 |  |  | (15) |  |  | 3,543 |
Redeemable preferred securities |  |  |  |  | 18 |  |  | — |  |  | — |  |  | 18 |
Total debt securities (2) |  |  |  |  | $ | 23,308 |  |  | $ | 191 |  |  | $ | (873) |  |  | $ | 22,626 |
December 31, 2023 |  |  |  |  |  |  |  |  |  |  |
Debt securities: |  |  |  |  |  |  |  |  |  |  |
U.S. government securities |  |  |  |  | $ | 2,071 |  |  | $ | 19 |  |  | $ | (54) |  |  | $ | 2,036 |
States, municipalities and political subdivisions |  |  |  |  | 2,219 |  |  | 31 |  |  | (35) |  |  | 2,215 |
U.S. corporate securities |  |  |  |  | 10,156 |  |  | 133 |  |  | (446) |  |  | 9,843 |
Foreign securities |  |  |  |  | 2,593 |  |  | 41 |  |  | (122) |  |  | 2,512 |
Residential mortgage-backed securities |  |  |  |  | 862 |  |  | 8 |  |  | (60) |  |  | 810 |
Commercial mortgage-backed securities |  |  |  |  | 1,066 |  |  | 9 |  |  | (100) |  |  | 975 |
Other asset-backed securities |  |  |  |  | 3,294 |  |  | 26 |  |  | (18) |  |  | 3,302 |
Redeemable preferred securities |  |  |  |  | 21 |  |  | — |  |  | (1) |  |  | 20 |
Total debt securities (2) |  |  |  |  | $ | 22,282 |  |  | $ | 267 |  |  | $ | (836) |  |  | $ | 21,713 |
_____________________________________________ (1)There was no allowance for expected credit losses recorded on available-for-sale debt securities at March 31, 2024 or December 31, 2023. (2)Investment risks associated with the Company’s experience-rated products generally do not impact the Company’s consolidated operating results. At March 31, 2024, debt securities with a fair value of $552 million, gross unrealized capital gains of $7 million and gross unrealized capital losses of $32 million, and at December 31, 2023, debt securities with a fair value of $592 million, gross unrealized capital gains of $10 million and gross unrealized capital losses of $28 million were included in total debt securities, but support experience-rated products. Changes in net unrealized capital gains (losses) on these securities are not reflected in accumulated other comprehensive loss. The amortized cost and fair value of debt securities at March 31, 2024 are shown below by contractual maturity. Actual maturities may differ from contractual maturities because securities may be restructured, called or prepaid, or the Company intends to sell a security prior to maturity.
In millions | Amortized Cost |  | Fair Value
Due to mature: |  |  |
Less than one year | $ | 1,262 |  |  | $ | 1,245 |
One year through five years | 8,032 |  |  | 7,836 |
After five years through ten years | 4,588 |  |  | 4,463 |
Greater than ten years | 3,915 |  |  | 3,703 |
Residential mortgage-backed securities | 857 |  |  | 800 |
Commercial mortgage-backed securities | 1,121 |  |  | 1,036 |
Other asset-backed securities | 3,533 |  |  | 3,543 |
Total | $ | 23,308 |  |  | $ | 22,626 |
Summarized below are the debt securities the Company held at March 31, 2024 and December 31, 2023 that were in an unrealized capital loss position, aggregated by the length of time the investments have been in that position:
| Less than 12 months |  | Greater than 12 months |  | Total
In millions, except number of securities | Number of Securities |  | Fair Value |  | Unrealized Losses |  | Number of Securities |  | Fair Value |  | Unrealized Losses |  | Number of Securities |  | Fair Value |  | Unrealized Losses
March 31, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Debt securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government securities | 210 |  |  | $ | 846 |  |  | $ | 12 |  |  | 273 |  |  | $ | 856 |  |  | $ | 54 |  |  | 483 |  |  | $ | 1,702 |  |  | $ | 66 |
States, municipalities and political subdivisions | 260 |  |  | 489 |  |  | 3 |  |  | 434 |  |  | 682 |  |  | 36 |  |  | 694 |  |  | 1,171 |  |  | 39 |
U.S. corporate securities | 1,413 |  |  | 1,720 |  |  | 19 |  |  | 3,995 |  |  | 5,260 |  |  | 455 |  |  | 5,408 |  |  | 6,980 |  |  | 474 |
Foreign securities | 324 |  |  | 444 |  |  | 7 |  |  | 915 |  |  | 1,299 |  |  | 117 |  |  | 1,239 |  |  | 1,743 |  |  | 124 |
Residential mortgage-backed securities | 41 |  |  | 143 |  |  | 1 |  |  | 429 |  |  | 468 |  |  | 61 |  |  | 470 |  |  | 611 |  |  | 62 |
Commercial mortgage-backed securities | 36 |  |  | 84 |  |  | — |  |  | 310 |  |  | 635 |  |  | 93 |  |  | 346 |  |  | 719 |  |  | 93 |
Other asset-backed securities | 351 |  |  | 852 |  |  | 5 |  |  | 213 |  |  | 451 |  |  | 10 |  |  | 564 |  |  | 1,303 |  |  | 15 |
Redeemable preferred securities | — |  |  | — |  |  | — |  |  | 7 |  |  | 13 |  |  | — |  |  | 7 |  |  | 13 |  |  | — |
Total debt securities | 2,635 |  |  | $ | 4,578 |  |  | $ | 47 |  |  | 6,576 |  |  | $ | 9,664 |  |  | $ | 826 |  |  | 9,211 |  |  | $ | 14,242 |  |  | $ | 873 |
December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Debt securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government securities | 74 |  |  | $ | 194 |  |  | $ | 2 |  |  | 280 |  |  | $ | 891 |  |  | $ | 52 |  |  | 354 |  |  | $ | 1,085 |  |  | $ | 54 |
States, municipalities and political subdivisions | 95 |  |  | 181 |  |  | 1 |  |  | 455 |  |  | 733 |  |  | 34 |  |  | 550 |  |  | 914 |  |  | 35 |
U.S. corporate securities | 576 |  |  | 672 |  |  | 14 |  |  | 4,120 |  |  | 5,602 |  |  | 432 |  |  | 4,696 |  |  | 6,274 |  |  | 446 |
Foreign securities | 160 |  |  | 243 |  |  | 4 |  |  | 964 |  |  | 1,407 |  |  | 118 |  |  | 1,124 |  |  | 1,650 |  |  | 122 |
Residential mortgage-backed securities | 33 |  |  | 97 |  |  | 1 |  |  | 461 |  |  | 517 |  |  | 59 |  |  | 494 |  |  | 614 |  |  | 60 |
Commercial mortgage-backed securities | 44 |  |  | 94 |  |  | 2 |  |  | 287 |  |  | 581 |  |  | 98 |  |  | 331 |  |  | 675 |  |  | 100 |
Other asset-backed securities | 196 |  |  | 449 |  |  | 4 |  |  | 443 |  |  | 867 |  |  | 14 |  |  | 639 |  |  | 1,316 |  |  | 18 |
Redeemable preferred securities | 4 |  |  | 2 |  |  | — |  |  | 8 |  |  | 18 |  |  | 1 |  |  | 12 |  |  | 20 |  |  | 1 |
Total debt securities | 1,182 |  |  | $ | 1,932 |  |  | $ | 28 |  |  | 7,018 |  |  | $ | 10,616 |  |  | $ | 808 |  |  | 8,200 |  |  | $ | 12,548 |  |  | $ | 836 |
The Company reviewed the securities in the table above and concluded that they are performing assets generating investment income to support the needs of the Company’s business. In performing this review, the Company considered factors such as the quality of the investment security based on research performed by the Company’s internal credit analysts and external rating agencies and the prospects of realizing the carrying value of the security based on the investment’s current prospects for recovery. Unrealized capital losses at March 31, 2024 were generally caused by interest rate increases and not by unfavorable changes in the credit quality associated with these securities. As of March 31, 2024, the Company did not intend to sell these securities, and did not believe it was more likely than not that it would be required to sell these securities prior to the anticipated recovery of their amortized cost basis. The maturity dates for debt securities in an unrealized capital loss position at March 31, 2024 were as follows:
| Supporting experience-rated products |  | Supporting remaining products |  | Total
In millions | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Due to mature: |  |  |  |  |  |  |  |  |  |  |
Less than one year | $ | 14 |  |  | $ | — |  |  | $ | 1,093 |  |  | $ | 19 |  |  | $ | 1,107 |  |  | $ | 19 |
One year through five years | 126 |  |  | 4 |  |  | 5,402 |  |  | 231 |  |  | 5,528 |  |  | 235 |
After five years through ten years | 78 |  |  | 8 |  |  | 2,426 |  |  | 173 |  |  | 2,504 |  |  | 181 |
Greater than ten years | 165 |  |  | 18 |  |  | 2,305 |  |  | 250 |  |  | 2,470 |  |  | 268 |
Residential mortgage-backed securities | 7 |  |  | — |  |  | 604 |  |  | 62 |  |  | 611 |  |  | 62 |
Commercial mortgage-backed securities | 15 |  |  | 1 |  |  | 704 |  |  | 92 |  |  | 719 |  |  | 93 |
Other asset-backed securities | 15 |  |  | 1 |  |  | 1,288 |  |  | 14 |  |  | 1,303 |  |  | 15 |
Total | $ | 420 |  |  | $ | 32 |  |  | $ | 13,822 |  |  | $ | 841 |  |  | $ | 14,242 |  |  | $ | 873 |
Mortgage Loans The Company’s mortgage loans are collateralized by commercial real estate. During the three months ended March 31, 2024 and 2023, the Company had the following activity in its mortgage loan portfolio:
| Three Months Ended March 31, |  |
In millions | 2024 |  | 2023 |  |  |  |
New mortgage loans | $ | 59 |  |  | $ | 55 |  |  |  |  |
Mortgage loans fully repaid | 2 |  |  | 14 |  |  |  |  |
Mortgage loans foreclosed | — |  |  | — |  |  |  |  |
The Company assesses mortgage loans on a regular basis for credit impairments, and assigns a credit quality indicator to each loan. The Company’s credit quality indicator is internally developed and categorizes each loan in its portfolio on a scale from 1 to 7. These indicators are based upon several factors, including current loan-to-value ratios, current and future property cash flow, property condition, market trends, creditworthiness of the borrower and deal structure. •Category 1 - Represents loans of superior quality. •Categories 2 to 4 - Represent loans where credit risk is minimal to acceptable; however, these loans may display some susceptibility to economic changes. •Categories 5 and 6 - Represent loans where credit risk is not substantial, but these loans warrant management’s close attention. •Category 7 - Represents loans where collections are potentially at risk; if necessary, an impairment is recorded. Based on the Company’s assessments at March 31, 2024 and December 31, 2023, the amortized cost basis of the Company's mortgage loans within each credit quality indicator by year of origination was as follows:
| Amortized Cost Basis by Year of Origination
In millions, except credit quality indicator | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior |  | Total
March 31, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |
1 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 10 |  |  | $ | 10 |
2 to 4 | 56 |  |  | 302 |  |  | 349 |  |  | 224 |  |  | 35 |  |  | 350 |  |  | 1,316 |
5 and 6 | — |  |  | — |  |  | — |  |  | 13 |  |  | — |  |  | 18 |  |  | 31 |
7 | — |  |  | — |  |  | — |  |  | 5 |  |  | — |  |  | — |  |  | 5 |
Total | $ | 56 |  |  | $ | 302 |  |  | $ | 349 |  |  | $ | 242 |  |  | $ | 35 |  |  | $ | 378 |  |  | $ | 1,362 |
December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |
1 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 11 |  |  | $ | 11 |
2 to 4 |  |  | 302 |  |  | 346 |  |  | 225 |  |  | 35 |  |  | 354 |  |  | 1,262 |
5 and 6 |  |  | — |  |  | — |  |  | 13 |  |  | — |  |  | 19 |  |  | 32 |
7 |  |  | — |  |  | — |  |  | 6 |  |  | — |  |  | — |  |  | 6 |
Total |  |  | $ | 302 |  |  | $ | 346 |  |  | $ | 244 |  |  | $ | 35 |  |  | $ | 384 |  |  | $ | 1,311 |
Net Investment Income Sources of net investment income for the three months ended March 31, 2024 and 2023 were as follows:
| Three Months Ended March 31, |  |
In millions | 2024 |  | 2023 |  |  |  |
Debt securities | $ | 244 |  |  | $ | 191 |  |  |  |  |
Mortgage loans | 17 |  |  | 13 |  |  |  |  |
Other investments | 223 |  |  | 245 |  |  |  |  |
Gross investment income | 484 |  |  | 449 |  |  |  |  |
Investment expenses | (12) |  |  | (10) |  |  |  |  |
Net investment income (excluding net realized capital losses) | 472 |  |  | 439 |  |  |  |  |
Net realized capital losses (1) | (18) |  |  | (105) |  |  |  |  |
Net investment income (2) | $ | 454 |  |  | $ | 334 |  |  |  |  |
_____________________________________________ (1)Net realized capital losses include yield-related impairment losses on debt securities of $10 million in the three months ended March 31, 2024. There were no credit-related impairment losses on debt securities in the three months ended March 31, 2024. Net realized capital losses include yield-related impairment losses of $24 million and are net of the reversal of previously recorded credit-related impairment losses on debt securities of $1 million in the three months ended March 31, 2023. (2)Net investment income includes $8 million for both the three months ended March 31, 2024 and 2023 related to investments supporting experience-rated products. Excluding amounts related to experience-rated products, proceeds from the sale of available-for-sale debt securities and the related gross realized capital gains and losses for the three months ended March 31, 2024 and 2023 were as follows:
| Three Months Ended March 31, |  |
In millions | 2024 |  | 2023 |  |  |  |
Proceeds from sales | $ | 1,265 |  |  | $ | 1,341 |  |  |  |  |
Gross realized capital gains | 8 |  |  | 3 |  |  |  |  |
Gross realized capital losses | 52 |  |  | 111 |  |  |  |  |

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//320/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 320 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481800/320-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6B -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-6B Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6B -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-6B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) -Publisher SEC Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 946 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//946-320/tableOfContent Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 940 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//940-320/tableOfContent Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 942 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//942-320/tableOfContent + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration