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Investments
 12 Months Ended
Dec. 31, 2024
Investments [Abstract]  
Investments Investments
The following table provides amortized cost, gross unrealized gains, gross unrealized losses and fair value for our fixed-maturity and short-term investments:
(Dollars in millions)Amortized
cost		Gross unrealized Fair
value
At December 31, 2024gainslosses
Fixed-maturity:    
Corporate $8,652 $61 $333 $8,380 
States, municipalities and political subdivisions4,976 15 270 4,721 
Government-sponsored enterprises2,282 1 9 2,274 
Asset-backed567 1 17 551 
United States government228 — 2 226 
Foreign government30 — — 30 
Total fixed-maturity16,735 78 631 16,182 
Short-term298 — — 298 
Total fixed-maturity and short-term investments$17,033 $78 $631 $16,480 
At December 31, 2023    
Fixed-maturity:    
Corporate $7,836 $70 $454 $7,452 
States, municipalities and political subdivisions4,867 44 208 4,703 
Government-sponsored enterprises1,227 3 6 1,224 
Asset-backed 203 — 16 187 
United States government203 — 3 200 
Foreign government25 — — 25 
Total fixed-maturity14,361 117 687 13,791 
Short-term— — — — 
Total fixed-maturity and short-term investments$14,361 $117 $687 $13,791 
 
The decrease in net unrealized investment losses in our fixed-maturity portfolio at December 31, 2024, is primarily due to a tightening of corporate credit spreads as well as realized losses on sales of some lower-yielding fixed maturities. Our asset-backed securities had an average rating of Aa1/AA and Aa3/AA- at December 31, 2024 and 2023, respectively.
The table below provides fair values and unrealized losses by investment category and by the duration of the continuous unrealized loss positions:
(Dollars in millions)Less than 12 months12 months or moreTotal
At December 31, 2024Fair
value		Unrealized
losses		Fair
value		Unrealized
losses		Fair
value		Unrealized
losses
Fixed-maturity:
Corporate $2,815 $78 $3,634 $255 $6,449 $333 
States, municipalities and political subdivisions1,513 25 1,898 245 3,411 270 
Government-sponsored enterprises1,876 8 92 1 1,968 9 
Asset-backed 331 10 96 7 427 17 
United States government48 — 100 2 148 2 
Foreign government— — 3 — 3 — 
Total fixed-maturity6,583 121 5,823 510 12,406 631 
Short-term100 — — — 100 — 
Total fixed-maturity and short-term investments$6,683 $121 $5,823 $510 $12,506 $631 
At December 31, 2023      
Fixed-maturity:
Corporate $379 $13 $5,560 $441 $5,939 $454 
States, municipalities and political subdivisions313 2 1,932 206 2,245 208 
Government-sponsored enterprises652 3 113 3 765 6 
Asset-backed 5 — 172 16 177 16 
United States government32 — 129 3 161 3 
Foreign government3 — 6 — 9 — 
Total fixed-maturity1,384 18 7,912 669 9,296 687 
Short-term— — — — — — 
Total fixed-maturity and short-term investments$1,384 $18 $7,912 $669 $9,296 $687 
 
Contractual maturity dates for our fixed-maturity and short-term investments were:
(Dollars in millions)Amortized costFair
value		% of fair value
At December 31, 2024
Maturity dates:   
Due in one year or less$1,363 $1,358 8.2 %
Due after one year through five years3,933 3,886 23.6 
Due after five years through ten years3,701 3,608 21.9 
Due after ten years8,036 7,628 46.3 
Total$17,033 $16,480 100.0 %
 
Actual maturities may differ from contractual maturities when there is a right to call or prepay obligations with or without call or prepayment penalties.
 
The company had fixed-maturity securities with a fair value of $107 million and $108 million, on deposit with various states in compliance with regulatory requirements at December 31, 2024 and 2023, respectively. In addition, cash and fixed-maturity securities deposited with third parties used as collateral to secure liabilities on behalf of insureds, cedants and other creditors had a fair value of $91 million and $125 million at December 31, 2024 and 2023, respectively. The company had common equities with a fair value of $216 million and $107 million, at December 31, 2024 and 2023, respectively, held in Lloyd's trust accounts to provide a portion of the capital needed to support Cincinnati Global's operations.

In the normal course of investing activities, the company enters into investments in limited partnerships, including private equity, real estate investments and asset-backed securities issued by third-parties. The company’s
maximum exposure to loss with respect to these investments is limited to the investment carrying values included in the company’s consolidated balance sheets and any unfunded commitments.

The following table provides investment income and investment gains and losses:
(Dollars in millions)Years ended December 31,
 202420232022
Investment income:   
Interest $733 $600 $510 
Dividends 283 282 275 
Other 25 25 11 
Total1,041 907 796 
Less investment expenses16 13 15 
Total$1,025 $894 $781 
Investment gains and losses, net:   
Equity securities:
Investment gains and losses on securities sold, net$181 $(17)$16 
Unrealized gains and losses on securities still held, net1,275 1,168 (1,526)
Subtotal1,456 1,151 (1,510)
Fixed-maturity securities:   
Gross realized gains5 4 6 
Gross realized losses(95)(5)(4)
Change in allowance for credit losses, net(26)(17)— 
Write-down of impaired securities with intent to sell— (4)(5)
Subtotal(116)(22)(3)
Other51 (2)46 
Total$1,391 $1,127 $(1,467)

The fair value of our equity portfolio was $11.185 billion and $10.989 billion at December 31, 2024 and 2023, respectively. Apple, Inc. (Nasdaq:AAPL) and Microsoft Corporation (Nasdaq:MSFT), equity holdings, were our largest single investment holdings with a fair value of $891 million and $842 million, which was 8.2% and 7.9% of our publicly traded common equities portfolio and 3.2% and 3.4% of the total investment portfolio at December 31, 2024 and 2023, respectively.

The allowance for credit losses on fixed-maturity securities was $33 million, $18 million and $1 million at December 31, 2024, 2023 and 2022, respectively. Reductions in the allowance for credit losses for securities sold were $11 million for the year ended December 31, 2024, and none for the years ended December 31, 2023 and 2022.

There were 3,723, 2,840 and 3,272 fixed-maturity and short-term investments in a total unrealized loss position of $631 million, $687 million and $908 million at December 31, 2024, 2023 and 2022, respectively. Of those totals, 19, 20 and 49 fixed-maturity securities had fair values below 70% of amortized cost at December 31, 2024, 2023 and 2022, respectively.