Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2024

Accumulated Other Comprehensive Income [Abstract]

Accumulated other comprehensive income (AOCI) includes changes in unrealized gains and losses on investments, changes in pension obligations and changes in life policy reserves, reinsurance recoverable and other as follows:


(Dollars in millions)	Three months ended September 30,
	2024						2023
	Before tax		Income tax		Net		Before tax		Income tax		Net
Investments:
AOCI, beginning of period	$	(700)	$	(151)	$	(549)	$	(838)	$	(179)	$	(659)


OCI before investment gains and losses, net, recognized in net income	411		88		323		(369)		(79)		(290)
Investment gains and losses, net, recognized in net income	86		18		68		—		—		—
OCI	497		106		391		(369)		(79)		(290)
AOCI, end of period	$	(203)	$	(45)	$	(158)	$	(1,207)	$	(258)	$	(949)

Pension obligations:
AOCI, beginning of period	$	31	$	8	$	23	$	29	$	7	$	22
OCI excluding amortization recognized in net income	—		—		—		—		—		—
Amortization recognized in net income	—		—		—		—		—		—
OCI	—		—		—		—		—		—
AOCI, end of period	$	31	$	8	$	23	$	29	$	7	$	22

Life policy reserves, reinsurance recoverable and other:
AOCI, beginning of period	$	71	$	15	$	56	$	13	$	2	$	11


OCI before investment gains and losses, net, recognized in net income	(91)		(20)		(71)		111		22		89
Investment gains and losses, net, recognized in net income	—		—		—		—		—		—
OCI	(91)		(20)		(71)		111		22		89
AOCI, end of period	$	(20)	$	(5)	$	(15)	$	124	$	24	$	100

Summary of AOCI:
AOCI, beginning of period	$	(598)	$	(128)	$	(470)	$	(796)	$	(170)	$	(626)


Investments OCI	497		106		391		(369)		(79)		(290)
Pension obligations OCI	—		—		—		—		—		—
Life policy reserves, reinsurance recoverable and other OCI	(91)		(20)		(71)		111		22		89
Total OCI	406		86		320		(258)		(57)		(201)
AOCI, end of period	$	(192)	$	(42)	$	(150)	$	(1,054)	$	(227)	$	(827)


(Dollars in millions)	Nine months ended September 30,
	2024						2023
	Before tax		Income tax		Net		Before tax		Income tax		Net
Investments:
AOCI, beginning of period	$	(570)	$	(123)	$	(447)	$	(847)	$	(182)	$	(665)


OCI before investment gains and losses, net, recognized in net income	253		54		199		(364)		(77)		(287)
Investment gains and losses, net, recognized in net income	114		24		90		4		1		3
OCI	367		78		289		(360)		(76)		(284)
AOCI, end of period	$	(203)	$	(45)	$	(158)	$	(1,207)	$	(258)	$	(949)

Pension obligations:
AOCI, beginning of period	$	30	$	8	$	22	$	36	$	9	$	27
OCI excluding amortization recognized in net income	—		—		—		(5)		(2)		(3)
Amortization recognized in net income	1		—		1		(2)		—		(2)
OCI	1		—		1		(7)		(2)		(5)
AOCI, end of period	$	31	$	8	$	23	$	29	$	7	$	22

Life policy reserves, reinsurance recoverable and other:
AOCI, beginning of period	$	(13)	$	(3)	$	(10)	$	29	$	5	$	24


OCI before investment gains and losses, net, recognized in net income	(7)		(2)		(5)		95		19		76
Investment gains and losses, net, recognized in net income	—		—		—		—		—		—
OCI	(7)		(2)		(5)		95		19		76
AOCI, end of period	$	(20)	$	(5)	$	(15)	$	124	$	24	$	100

Summary of AOCI:
AOCI, beginning of period	$	(553)	$	(118)	$	(435)	$	(782)	$	(168)	$	(614)


Investments OCI	367		78		289		(360)		(76)		(284)
Pension obligations OCI	1		—		1		(7)		(2)		(5)
Life policy reserves, reinsurance recoverable and other OCI	(7)		(2)		(5)		95		19		76
Total OCI	361		76		285		(272)		(59)		(213)
AOCI, end of period	$	(192)	$	(42)	$	(150)	$	(1,054)	$	(227)	$	(827)

Investment gains and losses, net, and other investment gains and losses, net, are recorded in the investment gains and losses, net, line item in the condensed consolidated statements of income. Amortization of pension obligations is recorded in the insurance losses and contract holders' benefits and underwriting, acquisition and insurance expenses line items in the condensed consolidated statements of income.