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INVESTMENT SECURITIES | 6 Months Ended
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Jun. 30, 2025
Investments, Debt and Equity Securities [Abstract] |
INVESTMENT SECURITIES | INVESTMENT SECURITIES Investment securities classified as current and long-term were as follows at June 30, 2025 and December 31, 2024, respectively:
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
| (in millions)
June 30, 2025 |  |  |  |  |  |  |
U.S. Treasury and other U.S. government corporations and agencies: |  |  |  |  |  |  |
U.S. Treasury and agency obligations | $ | 3,104 |  |  | $ | 3 |  |  | $ | (49) |  |  | $ | 3,058 |
Mortgage-backed securities | 4,434 |  |  | 4 |  |  | (421) |  |  | 4,017 |
Tax-exempt municipal securities | 488 |  |  | — |  |  | (24) |  |  | 464 |
Mortgage-backed securities: |  |  |  |  |  |  |
Residential | 589 |  |  | 1 |  |  | (54) |  |  | 536 |
Commercial | 1,113 |  |  | 1 |  |  | (61) |  |  | 1,053 |
Asset-backed securities | 1,271 |  |  | 6 |  |  | (16) |  |  | 1,261 |
Corporate debt securities | 8,115 |  |  | 37 |  |  | (442) |  |  | 7,710 |
Total debt securities | $ | 19,114 |  |  | $ | 52 |  |  | $ | (1,067) |  |  | $ | 18,099 |
December 31, 2024 |  |  |  |  |  |  |
U.S. Treasury and other U.S. government corporations and agencies: |  |  |  |  |  |  |
U.S. Treasury and agency obligations | $ | 3,336 |  |  | $ | 1 |  |  | $ | (110) |  |  | $ | 3,227 |
Mortgage-backed securities | 4,504 |  |  | — |  |  | (509) |  |  | 3,995 |
Tax-exempt municipal securities | 548 |  |  | — |  |  | (22) |  |  | 526 |
Mortgage-backed securities: |  |  |  |  |  |  |
Residential | 586 |  |  | — |  |  | (64) |  |  | 522 |
Commercial | 1,290 |  |  | 1 |  |  | (85) |  |  | 1,206 |
Asset-backed securities | 1,424 |  |  | 3 |  |  | (24) |  |  | 1,403 |
Corporate debt securities | 8,330 |  |  | 21 |  |  | (595) |  |  | 7,756 |
Total debt securities | $ | 20,018 |  |  | $ | 26 |  |  | $ | (1,409) |  |  | $ | 18,635 |
We own certain corporate debt securities of Gentiva Hospice. The book value and fair value are $381 million and $392 million, respectively, at June 30, 2025. The book value and fair value were $381 million and $396 million, respectively, at December 31, 2024. We participate in a securities lending program where we loan certain investment securities for short periods of time in exchange for collateral, consisting of cash or U.S. Government securities, initially equal to at least 102% of the fair value of the investment securities on loan. Collateral with a fair value of $467 million was held at June 30, 2025. At June 30, 2025, collateral from lending our investment securities has been reinvested in short-term, highly liquid assets. In addition, we participated in non-cash securities lending with a fair value of $128 million at June 30, 2025. Gross unrealized losses and fair values aggregated by investment category and length of time of individual debt securities that have been in a continuous unrealized loss position for which no allowances for credit loss has been recorded were as follows at June 30, 2025 and December 31, 2024, respectively:
| Less than 12 months |  | 12 months or more |  | Total
| Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses
| (in millions)
June 30, 2025 |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and other U.S. government corporations and agencies: |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and agency obligations | $ | 1,958 |  |  | $ | (17) |  |  | $ | 422 |  |  | $ | (32) |  |  | $ | 2,380 |  |  | $ | (49) |
Mortgage-backed securities | 1,274 |  |  | (22) |  |  | 2,142 |  |  | (399) |  |  | 3,416 |  |  | (421) |
Tax-exempt municipal securities | 58 |  |  | (1) |  |  | 370 |  |  | (23) |  |  | 428 |  |  | (24) |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |
Residential | 46 |  |  | — |  |  | 331 |  |  | (54) |  |  | 377 |  |  | (54) |
Commercial | 95 |  |  | — |  |  | 874 |  |  | (61) |  |  | 969 |  |  | (61) |
Asset-backed securities | 181 |  |  | (3) |  |  | 329 |  |  | (13) |  |  | 510 |  |  | (16) |
Corporate debt securities | 1,004 |  |  | (10) |  |  | 3,898 |  |  | (432) |  |  | 4,902 |  |  | (442) |
Total debt securities | $ | 4,616 |  |  | $ | (53) |  |  | $ | 8,366 |  |  | $ | (1,014) |  |  | $ | 12,982 |  |  | $ | (1,067) |
December 31, 2024 |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and other U.S. government corporations and agencies: |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and agency obligations | $ | 2,343 |  |  | $ | (68) |  |  | $ | 456 |  |  | $ | (42) |  |  | $ | 2,799 |  |  | $ | (110) |
Mortgage-backed securities | 1,766 |  |  | (50) |  |  | 2,203 |  |  | (459) |  |  | 3,969 |  |  | (509) |
Tax-exempt municipal securities | 97 |  |  | (1) |  |  | 405 |  |  | (21) |  |  | 502 |  |  | (22) |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |
Residential | 130 |  |  | (2) |  |  | 343 |  |  | (62) |  |  | 473 |  |  | (64) |
Commercial | 58 |  |  | (1) |  |  | 992 |  |  | (84) |  |  | 1,050 |  |  | (85) |
Asset-backed securities | 419 |  |  | (5) |  |  | 436 |  |  | (19) |  |  | 855 |  |  | (24) |
Corporate debt securities | 2,385 |  |  | (51) |  |  | 4,269 |  |  | (544) |  |  | 6,654 |  |  | (595) |
Total debt securities | $ | 7,198 |  |  | $ | (178) |  |  | $ | 9,104 |  |  | $ | (1,231) |  |  | $ | 16,302 |  |  | $ | (1,409) |
Approximately 97% of our debt securities were investment-grade quality, with a weighted average credit rating of AA- by Standard & Poor's Rating Service, or S&P, at June 30, 2025. Our remaining debt securities below investment-grade were primarily rated B+, the higher end of the below investment-grade rating scale. Tax-exempt municipal securities were diversified among general obligation bonds of states and local municipalities in the United States as well as special revenue bonds issued by municipalities to finance specific public works projects such as utilities, water and sewer, transportation, or education. Our general obligation bonds are diversified across the United States with no individual state exceeding approximately 1% of our total debt securities. Our investment policy limits investments in a single issuer and requires diversification among various asset types. Our unrealized losses from all debt securities were generated from approximately 1,370 positions out of a total of approximately 2,210 positions at June 30, 2025. All issuers of debt securities we own that were trading at an unrealized loss at June 30, 2025 remain current on all contractual payments. After taking into account these and other factors previously described, we believe these unrealized losses primarily were caused by an increase in market interest rates in the current markets since the time these debt securities were purchased. At June 30, 2025, we did not intend to sell any debt securities with an unrealized loss position in accumulated other comprehensive income, and it is not likely that we will be required to sell these debt securities before recovery of their amortized cost basis. Additionally, we did not record any material credit allowances for debt securities that were in an unrealized loss position for the three and six months ended June 30, 2025 or 2024. The detail of gains (losses) related to investment securities and included within investment income was as follows for the three and six months ended June 30, 2025 and 2024:
| Three months ended June 30, |  | Six months ended June 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
| (in millions) |  | (in millions)
Gross gains on investment securities | $ | 13 |  |  | $ | — |  |  | $ | 18 |  |  | $ | 2 |
Gross losses on investment securities | (2) |  |  | (1) |  |  | (5) |  |  | (2) |
Net recognized gains (losses) on investment securities | $ | 11 |  |  | $ | (1) |  |  | $ | 13 |  |  | $ | — |
The contractual maturities of debt securities available for sale at June 30, 2025, regardless of their balance sheet classification, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
| Amortized Cost |  | Fair Value
| (in millions)
Due within one year | $ | 854 |  |  | $ | 851 |
Due after one year through five years | 5,388 |  |  | 5,285 |
Due after five years through ten years | 4,303 |  |  | 4,136 |
Due after ten years | 1,162 |  |  | 960 |
Mortgage and asset-backed securities | 7,407 |  |  | 6,867 |
Total debt securities | $ | 19,114 |  |  | $ | 18,099 |
For additional information regarding our investment securities, refer to Note 2 to the audited Consolidated Financial Statements included in Part II, Item 8, "Financial Statements and Supplementary Data" in our 2024 Form 10-K.

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