Investments

12 Months Ended

Dec. 31, 2024

5. INVESTMENTS

Net Investment Income


	For the years ended December 31,
(Before tax)	2024		2023		2022
Fixed maturities [1]	$	2,204	$	1,895	$	1,469
Equity securities	35		45		57
Mortgage loans	266		235		211
Limited partnerships and other alternative investments	148		212		515
Other investments [2]	14		9		5
Gross investment income	$	2,667	$	2,396	$	2,257
Investment expenses	(99)		(91)		(80)
Total net investment income	$	2,568	$	2,305	$	2,177

[1]Includes net investment income on short-term investments.

[2]Primarily includes changes in fair value of certain equity fund investments and income from derivatives that qualify for hedge accounting and are used to hedge fixed maturities.

Net Realized Gains (Losses)


	For the years ended December 31,
(Before tax)	2024		2023		2022
Gross gains on sales of fixed maturities	$	31	$	30	$	57
Gross losses on sales of fixed maturities	(198)		(149)		(315)
Equity securities [1]
Net realized gains (losses) on sales of equity securities	(11)		100		(83)
Change in net unrealized gains (losses) of equity securities	84		(22)		(266)
Net realized and unrealized gains (losses) on equity securities	73		78		(349)
Net credit losses on fixed maturities, AFS	(2)		(14)		(18)
Change in ACL on mortgage loans	3		(15)		(7)
Intent-to-sell impairments	—		—		(6)
Other, net [2]	32		(118)		11
Net realized (losses)	$	(61)	$	(188)	$	(627)

[1]The change in net unrealized gains (losses) on equity securities still held as of the end of the period and included in net realized gains (losses) were $68, $17, and $(108) for the years ended December 31, 2024, 2023, and 2022, respectively.

[2]Includes gains (losses) on non-qualifying derivatives for the years ended December 31, 2024, 2023, and 2022 of $13, $(108), and $46, respectively, and gains (losses) from transactional foreign currency revaluation of $20, $(15), and $28, respectively.

Proceeds from the sales of fixed maturities, AFS totaled $5.7 billion, $3.8 billion, and $11.4 billion for the years ended December 31, 2024, 2023, and 2022, respectively. Sales of fixed maturities, AFS in 2024 were primarily a result of tactical changes to the portfolio driven by changing market conditions, in addition to duration and liquidity management. Non-cash investing activities for the year ended December 31, 2024, included $18 related to the exchange of short-term investments for equity securities. Non-cash investing activities for the year ended December 31, 2023, included $80, related to the exchange of short-term investments for mortgage loans.

Accrued Investment Income on Fixed Maturities, AFS and Mortgage Loans

As of December 31, 2024 and December 31, 2023, the Company reported accrued investment income related to fixed maturities, AFS of $412 and $371, respectively, and accrued investment income related to mortgage loans of $22 and $20, respectively. These amounts are not included in the carrying value of the fixed maturities or mortgage loans. Investment income on fixed maturities and mortgage loans is accrued unless it is past due over 90 days or management deems the interest uncollectible. The Company does not include the current accrued investment income balance when estimating the ACL. The Company has a policy to write-off accrued investment income balances that are more than 90 days past due. Write-

offs of accrued investment income are recorded as a credit loss component of net realized gains and losses.

Recognition and Presentation of Intent-to-Sell Impairments and ACL on Fixed Maturities, AFS

The Company will record an "intent-to-sell impairment" as a reduction to the amortized cost of fixed maturities, AFS in an unrealized loss position if the Company intends to sell or it is more likely than not that the Company will be required to sell the fixed maturity before a recovery in value. A corresponding charge is recorded in net realized losses equal to the difference between the fair value on the impairment date and the amortized cost basis of the fixed maturity before recognizing the impairment.

For fixed maturities where a credit loss has been identified and no intent-to-sell impairment has been recorded, the Company will record an ACL for the portion of the unrealized loss related to the credit loss. Any remaining unrealized loss on a fixed maturity after recording an ACL is the non-credit amount and is recorded in OCI. The ACL is the excess of the amortized cost over the greater of the Company's best estimate of the present value of expected future cash flows or the security's fair value. Cash flows are discounted at the effective yield that is used to record interest income. The ACL cannot exceed the unrealized loss and, therefore, it may fluctuate with changes in the fair value of the fixed maturity if the fair value is greater than the Company's best estimate of the present value of expected future cash flows. The initial ACL and any subsequent changes are recorded in net realized gains and losses. The ACL is written off against the amortized cost in the period in which all or a

portion of the related fixed maturity is determined to be uncollectible.

Developing the Company’s best estimate of expected future cash flows is a quantitative and qualitative process that incorporates information received from third-party sources along with certain internal assumptions regarding the future performance. The Company's considerations include, but are not limited to, (a) changes in the financial condition of the issuer and/or the underlying collateral, (b) whether the issuer is current on contractually obligated interest and principal payments, (c) credit ratings, (d) payment structure of the security and (e) the extent to which the fair value has been less than the amortized cost of the security.

For non-structured securities, assumptions include, but are not limited to, economic and industry-specific trends and fundamentals, instrument-specific developments including changes in credit ratings, industry earnings multiples and the issuer’s ability to restructure, access capital markets, and execute asset sales.

For structured securities, assumptions include, but are not limited to, various performance indicators such as historical and projected default and recovery rates, credit ratings, current and projected delinquency rates, loan-to-value ("LTV") ratios, average cumulative collateral loss rates that vary by vintage year, prepayment speeds, and property value declines. These assumptions require the use of significant management judgment and include the probability of issuer default and estimates regarding timing and amount of expected recoveries which may include estimating the underlying collateral value.


ACL on Fixed Maturities, AFS by Type
	For the years ended December 31,
	2024						2023					2022
(Before tax)	CMBS		Corporate		Total			CMBS		Corporate		Total		CMBS		Corporate		Foreign govt./govt. agencies		Total
Balance as of beginning of period	$	12	$	9	$	21		$	10	$	2	$	12	$	—	$	1	$	—	$	1
Credit losses on fixed maturities where an allowance was not previously recorded	1		—		1			—		9		9		7		10		3		20
Reduction due to sales	—		(3)		(3)			—		(5)		(5)		—		(3)		(1)		(4)
Reduction due to intent to sell	—		—		—			—		—		—		—		—		(3)		(3)
Net increases (decreases) on fixed maturities where an allowance was previously recorded	—		1		1			2		3		5		3		(3)		1		1
Write-offs charged against the allowance	—		(4)		(4)			—		—		—		—		(3)		—		(3)
Balance as of end of period	$	13	$	3	$	16		$	12	$	9	$	21	$	10	$	2	$	—	$	12

Fixed Maturities, AFS


Fixed Maturities, AFS, by Type
	December 31, 2024										December 31, 2023
	Amortized Cost		ACL		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Amortized Cost		ACL		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
ABS	$	3,948	$	—	$	28	$	(39)	$	3,937	$	3,347	$	—	$	18	$	(45)	$	3,320
CLOs	3,237		—		13		—		3,250		3,104		—		3		(17)		3,090
CMBS	2,976		(13)		21		(248)		2,736		3,466		(12)		19		(348)		3,125
Corporate	21,555		(3)		117		(1,033)		20,636		18,691		(9)		197		(1,013)		17,866
Foreign govt./govt. agencies	500		—		3		(23)		480		583		—		6		(27)		562
Municipal	5,574		—		77		(347)		5,304		6,207		—		131		(299)		6,039
RMBS	5,610		—		13		(393)		5,230		4,675		—		18		(406)		4,287
U.S. Treasuries	1,138		—		—		(144)		994		1,653		—		26		(150)		1,529
Total fixed maturities, AFS	$	44,538	$	(16)	$	272	$	(2,227)	$	42,567	$	41,726	$	(21)	$	418	$	(2,305)	$	39,818

Fixed Maturities, AFS, by Contractual Maturity Year


	December 31, 2024				December 31, 2023
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
One year or less	$	1,308	$	1,298	$	1,526	$	1,501
Over one year through five years	9,564		9,414		9,670		9,433
Over five years through ten years	7,687		7,334		6,568		6,211
Over ten years	10,208		9,368		9,370		8,851
Subtotal	28,767		27,414		27,134		25,996
Mortgage-backed and asset-backed securities	15,771		15,153		14,592		13,822
Total fixed maturities, AFS	$	44,538	$	42,567	$	41,726	$	39,818

Estimated maturities may differ from contractual maturities due to call or prepayment provisions. Due to the potential for variability in payment speeds (i.e., prepayments or extensions), mortgage-backed and asset-backed securities are not categorized by contractual maturity.

Concentration of Credit Risk

The Company aims to maintain a diversified investment portfolio including issuer, sector and geographic stratification, where applicable, and has established certain exposure limits, diversification standards and review procedures to mitigate credit risk. The Company had no investment exposure to any credit concentration risk of a single issuer greater than 10% of the Company's stockholders' equity as of December 31, 2024, or December 31, 2023, other than U.S. government securities and certain U.S. government agencies.

As of December 31, 2024, other than U.S. government securities and certain U.S. government agencies, the

Company’s three largest exposures by issuer were NextEra Energy Inc., Morgan Stanley, and the Government of Canada, each of which comprised less than 1% of total invested assets. As of December 31, 2023, other than U.S. government securities and certain U.S. government agencies, the Company’s three largest exposures by issuer were NextEra Energy Inc., the Government of Canada, and Morgan Stanley, each of which comprised less than 1% of total invested assets. The Company’s three largest exposures by sector as of December 31, 2024, were the financial services sector, the municipal sector, and the RMBS sector, which comprised approximately 11%, 9%, and 9%, respectively, of total invested assets. The Company’s three largest exposures by sector as of December 31, 2023, were the municipal sector, the financial services sector, and the RMBS sector, which comprised approximately 11%, 9%, and 8%, respectively, of total invested assets.

Unrealized Losses on Fixed Maturities, AFS


Unrealized Loss Aging for Fixed Maturities, AFS by Type and Length of Time as of December 31, 2024
	Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
ABS	$	1,088	$	(14)	$	407	$	(25)	$	1,495	$	(39)
CLOs	78		—		—		—		78		—
CMBS	228		(4)		2,299		(244)		2,527		(248)
Corporate	5,883		(138)		8,212		(895)		14,095		(1,033)
Foreign govt./govt. agencies	165		(5)		178		(18)		343		(23)
Municipal	1,263		(27)		2,712		(320)		3,975		(347)
RMBS	1,297		(29)		2,672		(364)		3,969		(393)
U.S. Treasuries	406		(26)		461		(118)		867		(144)
Total fixed maturities, AFS in an unrealized loss position	$	10,408	$	(243)	$	16,941	$	(1,984)	$	27,349	$	(2,227)


Unrealized Loss Aging for Fixed Maturities, AFS by Type and Length of Time as of December 31, 2023
	Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
ABS	$	604	$	(6)	$	1,043	$	(39)	$	1,647	$	(45)
CLOs	209		(1)		2,249		(16)		2,458		(17)
CMBS	117		(7)		2,837		(341)		2,954		(348)
Corporate	810		(10)		11,149		(1,003)		11,959		(1,013)
Foreign govt./govt. agencies	27		—		368		(27)		395		(27)
Municipal	329		(3)		3,196		(296)		3,525		(299)
RMBS	181		(3)		3,207		(403)		3,388		(406)
U.S. Treasuries	120		(11)		1,121		(139)		1,241		(150)
Total fixed maturities, AFS in an unrealized loss position	$	2,397	$	(41)	$	25,170	$	(2,264)	$	27,567	$	(2,305)

As of December 31, 2024, fixed maturities, AFS in an unrealized loss position consisted of 3,933 instruments and were primarily depressed due to higher interest rates and/or wider credit spreads since the purchase date. As of December 31, 2024, 94% of these fixed maturities were depressed less than 20% of cost or amortized cost. The total gross unrealized losses as of December 31, 2024 are largely consistent with year-end 2023.

Most of the fixed maturities depressed for twelve months or more relate to the corporate sector, RMBS, municipal bonds, and CMBS, which were primarily depressed because current rates are higher and/or market spreads are wider than at the respective purchase dates. The Company neither has an intention to sell nor does it expect to be required to sell the fixed maturities outlined in the preceding discussion. The decision to record credit losses on fixed maturities, AFS in the form of an ACL requires us to make qualitative and quantitative estimates of expected future cash flows.

Mortgage Loans

ACL on Mortgage Loans

The Company reviews mortgage loans on a quarterly basis to estimate the ACL with changes in the ACL recorded in net realized gains and losses. Apart from an ACL recorded on individual mortgage loans where the borrower is experiencing financial difficulties, the Company records an ACL on the pool of mortgage loans based on lifetime expected credit losses. The Company utilizes a third-party forecasting model to estimate lifetime expected credit losses at a loan level under multiple economic scenarios. The scenarios use macroeconomic data provided by an internationally recognized economics firm that generates forecasts of varying economic factors such as GDP growth, unemployment and interest rates. The economic scenarios are projected over 10 years. The first two to four years of the 10-year period assume a specific modeled economic scenario (including moderate upside, moderate recession and severe recession scenarios) and then revert to historical long-term assumptions over the remaining period. Using these economic scenarios, the forecasting model projects property-specific operating income and capitalization rates used to estimate the value of a future operating income stream. The operating income and the property valuations derived from capitalization rates are compared to loan payment and principal amounts to create debt service coverage ratios ("DSCRs") and LTVs over the forecast period. The Company's process also considers qualitative factors. The model overlays historical data about mortgage loan performance based on DSCRs and LTVs and projects the probability of default, amount of loss given a default and resulting expected loss through maturity for each loan under each economic scenario. Economic scenarios are probability-weighted based on a statistical analysis of the forecasted economic factors and qualitative analysis. The Company records the change in the ACL on mortgage loans based on the weighted-average expected credit losses across the selected economic scenarios.

When a borrower is experiencing financial difficulty, including when foreclosure is probable, the Company measures an ACL on individual mortgage loans. The ACL is established for any shortfall between the amortized cost of the loan and the fair value of the collateral less costs to sell. Estimates of collectibility from an individual borrower require the use of significant management judgment and include the probability and timing of

borrower default and loss severity estimates. In addition, cash flow projections may change based upon new information about the borrower's ability to pay and/or the value of underlying collateral such as changes in projected property value estimates. During the period in which all or a portion of the mortgage loan is determined to be uncollectible, the ACL is written off against the amortized cost.

There were no mortgage loans held-for-sale as of December 31, 2024 or December 31, 2023. For the year ended December 31, 2024, one office property mortgage loan with an amortized cost of $9 was granted a term extension of three years at the original rate, which is a below-market rate, with a borrower experiencing financial difficulties. The modified loan represents less than 1% of the mortgage loan portfolio and is current and performing in conjunction with the modified terms. For the year ended December 31, 2023, the Company had no mortgage loans that have had extensions or restructurings other than what is allowable under the original terms of the contract or with borrowers experiencing financial difficulties.


ACL on Mortgage Loans
	For the years ended December 31,
	2024		2023		2022
ACL as of beginning of period	$	51	$	36	$	29


Current period provision (release)	(3)		15		7

Current period gross write-offs	(4)		—		—

ACL as of December 31,	$	44	$	51	$	36

The weighted-average LTV ratio of the Company’s mortgage loan portfolio was 56% as of December 31, 2024, while the weighted-average LTV ratio at origination of these loans was 59%. LTV ratios compare the loan amount to the value of the underlying property collateralizing the loan with property values based on appraisals updated no less than annually. Factors considered in estimating property values include, among other things, actual and expected property cash flows, geographic market data and the ratio of the property's net operating income to its value. DSCR compares a property’s net operating income to the borrower’s principal and interest payments and are updated no less than annually through reviews of underlying properties.


Mortgage Loans LTV & DSCR by Origination Year as of December 31, 2024
	2024			2023			2022			2021			2020			2019 & Prior			Total
Loan-to-value	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost [1]		Avg. DSCR
Greater than 80%	$	25	0.63x	$	—	—x	$	16	1.05x	$	37	1.03x	$	—	—x	$	110	1.68x	$	188	1.34x
65% - 80%	89		1.42x	7		1.35x	204		1.89x	421		2.55x	100		3.60x	439		2.01x	1,260		2.26x
Less than 65%	357		1.62x	489		1.39x	696		2.85x	1,108		2.93x	518		2.67x	1,824		2.71x	4,992		2.57x
Total mortgage loans	$	471	1.52x	$	496	1.39x	$	916	2.61x	$	1,566	2.79x	$	618	2.82x	$	2,373	2.53x	$	6,440	2.47x

[1]Amortized cost of mortgage loans excludes ACL of $44.


Mortgage Loans LTV & DSCR by Origination Year as of December 31, 2023
	2023			2022			2021			2020			2019			2018 & Prior			Total
Loan-to-value	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost [1]		Avg. DSCR
Greater than 80%	$	—	—x	$	16	1.09x	$	38	1.05x	$	—	—x	$	—	—x	$	105	1.41x	$	159	1.29x
65% - 80%	—		—x	189		2.13x	457		2.42x	95		3.47x	98		1.77x	252		1.77x	1,091		2.25x
Less than 65%	400		1.47x	724		2.75x	1,105		2.99x	527		2.92x	679		2.90x	1,453		2.67x	4,888		2.72x
Total mortgage loans	$	400	1.47x	$	929	2.60x	$	1,600	2.78x	$	622	3.00x	$	777	2.76x	$	1,810	2.47x	$	6,138	2.60x

[1]Amortized cost of mortgage loans excludes ACL of $51.


Mortgage Loans by Region
	December 31, 2024				December 31, 2023
	Amortized Cost		Percent of Total		Amortized Cost		Percent of Total
East North Central	$	362	5.6	%	$	368	6.0	%
Middle Atlantic	259		4.0	%	238		3.9	%
Mountain	764		11.9	%	699		11.4	%
New England	356		5.5	%	351		5.7	%
Pacific	1,400		21.8	%	1,326		21.6	%
South Atlantic	1,821		28.3	%	1,776		28.9	%
West North Central	97		1.5	%	103		1.7	%
West South Central	588		9.1	%	445		7.2	%
Other [1]	793		12.3	%	832		13.6	%
Total mortgage loans	6,440		100.0	%	6,138		100.0	%
ACL	(44)				(51)
Total mortgage loans, net of ACL	$	6,396			$	6,087

[1]Primarily represents loans collateralized by multiple properties in various regions.


Mortgage Loans by Property Type
	December 31, 2024				December 31, 2023
	Amortized Cost		Percent of Total		Amortized Cost		Percent of Total
Commercial
Industrial	$	2,737	42.5	%	$	2,363	38.5	%
Multifamily	2,161		33.5	%	2,200		35.9	%
Office	507		7.9	%	578		9.4	%
Retail [1]	957		14.9	%	917		14.9	%
Single Family	78		1.2	%	80		1.3	%

Total mortgage loans	6,440		100.0	%	6,138		100.0	%
ACL	(44)				(51)
Total mortgage loans, net of ACL	$	6,396			$	6,087

[1]Primarily comprised of grocery-anchored retail centers, with no exposure to regional shopping malls.

Past-Due Mortgage Loans

Mortgage loans are considered past due if a payment of principal or interest is not received according to the contractual terms of the loan agreement, which typically includes a grace period. As of December 31, 2024 and December 31, 2023, the Company held no mortgage loans considered past due.

Mortgage Servicing

The Company originates, sells, and services commercial mortgage loans on behalf of third parties and recognizes servicing fee income over the period that services are performed. As of December 31, 2024, under this program, the Company serviced mortgage loans with a total outstanding principal of $10.0 billion, of which $4.8 billion was serviced on behalf of third parties and $5.2 billion was retained and reported in total investments on the Company's Consolidated Balance Sheets. As of December 31, 2023, the Company serviced mortgage loans with a total outstanding principal balance of $9.4 billion, of which $4.4 billion was serviced on behalf of third parties and $5.0 billion was retained and reported in total investments on the Company's Consolidated Balance Sheets. Servicing rights are carried at the lower of cost or fair value and were $0 as of December 31, 2024 and December 31, 2023, because servicing fees were market-level fees at origination and remain adequate to compensate the Company for servicing the loans.

Variable Interest Entities

The Company is engaged with various special purpose entities and other entities that are deemed to be VIEs primarily as an investor through normal investment activities or, at times, as an investment manager.

A VIE is an entity that either has investors that lack certain essential characteristics of a controlling financial interest, such as simple majority kick-out rights, or lacks sufficient funds to finance its own activities without financial support provided by other entities. The Company performs ongoing qualitative assessments of its VIEs to determine whether the Company has a controlling financial interest in the VIE and therefore is the primary beneficiary. The Company is deemed to have a controlling financial interest when it has both the ability to direct the activities that most significantly impact the economic performance of the VIE and the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. Based on the Company’s assessment, if it

determines it is the primary beneficiary, the Company consolidates the VIE in the Company’s Consolidated Financial Statements.

Consolidated VIEs

As of December 31, 2024 and 2023, the Company did not hold any securities for which it is the primary beneficiary.

Non-Consolidated VIEs

The Company, through normal investment activities, makes passive investments in limited partnerships and other alternative investments. For these non-consolidated VIEs, the Company has determined it is not the primary beneficiary as it has no ability to direct activities that could significantly affect the economic performance of the investments. The Company’s maximum exposure to loss as of December 31, 2024 and 2023 is limited to the total carrying value of $3.2 billion and $3.0 billion, respectively, which are a portion of the investments in limited partnerships and other alternative investments in the Company's Consolidated Balance Sheets that are primarily recorded using the equity method of accounting. As of December 31, 2024 and 2023, the Company has outstanding commitments totaling $2.0 billion and $1.7 billion, respectively, whereby the Company is committed to fund these investments and may be called by the partnership during the commitment period to fund the purchase of new investments and partnership expenses. These investments are generally of a passive nature in that the Company does not take an active role in management.

Furthermore, the Company makes investments in entities that sponsor affordable housing projects. Similarly, for these non-consolidated VIEs, the Company has determined it is not the primary beneficiary as it has no ability to direct activities that could significantly affect the economic performance of the investments. The Company applies the proportional amortization method to subsequently measure its investments in such qualified affordable housing projects, where costs are amortized over the period in which the investor expects to receive tax credits and the resulting amortization is recognized as a component of income tax expense on the Company's Consolidated Statements of Operations. For the years ended December 31, 2024, 2023, and 2022, the Company recognized amortization of $2, $1, and $0 respectively, and related tax benefits of $8, $1, and $0, respectively. The income tax credits and other income tax benefits are recognized in operating activities in the Consolidated Statement of Cash Flows. The carrying value of these investments, which are reported in other assets on the Company’s Consolidated Balance Sheets was $51 and $20 as of December 31, 2024, and December 31, 2023, respectively. As of December 31, 2024 and December 31, 2023, the Company has outstanding commitments related to affordable housing projects of $267 and $180, respectively, that are contingent on various conditions precedent to funding.

In addition, the Company makes passive investments in structured securities issued by VIEs for which the Company is not the manager. These investments are included in ABS, CLOs, CMBS, and RMBS and are reported in fixed maturities, AFS, and FVO securities, on the Company's Consolidated Balance Sheets. The Company has not provided financial or other support with respect to these investments other than its

original investment. For these investments, the Company determined it is not the primary beneficiary due to the relative size of the Company’s investment in comparison to the principal amount of the structured securities issued by the VIEs, the Company’s inability to direct the activities that most significantly impact the economic performance of the VIEs, and, where applicable, the level of credit subordination which reduces the Company’s obligation to absorb losses or right to receive benefits. The Company’s maximum exposure to loss on these investments is limited to the amount of the Company’s investment.

For the year ended December 31, 2024, the Company sold $86 of fixed maturities, AFS for a net realized loss of less than $1 to a CLO issued by a VIE. The Company then purchased $24 of fixed maturities, AFS and $50 of FVO securities from the VIE issuer. These investments are valued based on unobservable inputs and are classified within Level 3 of the fair value hierarchy. In addition, the Company is committed to fund an additional $426 of fixed maturities, AFS in this CLO. The Company has determined it is not the primary beneficiary of the VIE issuer as it has no ability to direct the activities that could significantly affect the economic performance of the securitization.

Reverse Repurchase Agreements, Other Collateral Transactions and Restricted Investments

Reverse Repurchase Agreements

From time to time, the Company enters into reverse repurchase agreements where the Company purchases securities and simultaneously agrees to resell the same or substantially the same securities. The maturity of these transactions is generally within one year. The agreements require additional collateral to be transferred to the Company under specified conditions and the Company has the right to sell or re-pledge the securities received. The Company accounts for reverse repurchase agreements as collateralized financing. As of December 31, 2024 and December 31, 2023, the Company reported $0 and $10, respectively, within short-term investments on the Consolidated Balance Sheets representing a receivable for the amount of cash transferred to purchase the securities.

Other Collateral Transactions

As of December 31, 2024 and December 31, 2023, the Company pledged collateral of $1 and $7, respectively, of U.S. government securities or cash primarily related to certain bank loan participations committed to through a limited partnership agreement.

For disclosure of collateral in support of derivative transactions, refer to the Derivative Collateral Arrangements section in Note 6 - Derivatives of Notes to Consolidated Financial Statements.

Other Restricted Investments

The Company is required by law to deposit securities with government agencies in certain states in which it conducts business. In addition, the Company is required to hold fixed maturities and short-term investments in trust for the benefit of

syndicate policyholders, hold fixed maturities in a Lloyd's of London ("Lloyd's") trust account to provide a portion of the required capital, and maintain other investments primarily consisting of overseas deposits in various countries with Lloyd's to support underwriting activities in those countries. Lloyd's is an insurance market-place operating worldwide. Lloyd's does not underwrite risks. The Company accepts risks as the sole member of Lloyd's Syndicate 1221 ("Lloyd's Syndicate").

The following table presents the components of the Company’s exposure to other restricted investments.



	December 31, 2024		December 31, 2023
	Fair Value		Fair Value
Securities on deposit with government agencies	$	2,362	$	2,339
Fixed maturities in trust for benefit of Lloyd's Syndicate policyholders	1,056		890
Short-term investments in trust for benefit of Lloyd's Syndicate policyholders	25		30
Fixed maturities in Lloyd's trust account	—		154
Other investments	61		75
Total Other Restricted Investments	$	3,504	$	3,488

Equity Method Investments

The majority of the Company's investments in limited partnerships and other alternative investments, including real estate joint ventures, real estate funds, private equity funds, and other funds (collectively, “limited partnerships”), are accounted for under the equity method of accounting. The remainder of investments in limited partnerships and other alternative investments consists of investments in insurer-owned life insurance accounted for at cash surrender value.

Equity method income is reported in net investment income, except amounts related to strategic investments classified in other assets which are reported in other revenues. For investments accounted for under the equity method, the Company’s maximum exposure to loss as of December 31, 2024 is limited to the total carrying value of $4.6 billion. In addition, the Company has outstanding commitments totaling $2.1 billion to fund limited partnership investments as of December 31, 2024. The Company’s investments accounted for under the equity method are generally of a passive nature in that the Company does not take an active role in the management.

For the period ended December 31, 2024, aggregate investment income from investments accounted for under the equity method did not exceed 10% of the Company’s before tax consolidated net income. For the periods ended December 31, 2023 and 2022, aggregate investment income from investments accounted for under the equity method exceeded 10% of the Company’s before tax consolidated net income. Accordingly, the Company is disclosing aggregated, summarized financial data for the Company’s investments accounted for under the equity method based on the most recently available information. This aggregated, summarized financial data does not represent the Company’s proportionate share of investees' assets or earnings.


Aggregated summarized financial information of the Company’s equity method investees:
	As of December 31,
	2024		2023
Balance sheet:
Total assets	$	356,430	$	308,259


Total liabilities	$	57,017	$	44,950
The Company's carrying value	$	4,552	$	4,328


	For the years ended December 31,
	2024		2023		2022
Operating results:


Net investment income (loss)	$	(1,002)	$	(1,240)	$	1,604

Net income excluding net investment income	$	14,778	$	13,000	$	11,885
The Company's share of equity method income	$	103	$	181	$	533