Investments

3 Months Ended

Mar. 31, 2025

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 March 31, 2025			gains		losses
Fixed-maturity:
Corporate	$	8,833	$	78	$	278	$	8,633
States, municipalities and political subdivisions	4,973		10		291		4,692
Government-sponsored enterprises	2,310		3		3		2,310
Asset-backed	649		5		9		645
United States government	217		—		1		216
Foreign government	27		—		—		27

Total fixed-maturity	17,009		96		582		16,523




Short-term	100		—		—		100
Total fixed-maturity and short-term investments	$	17,109	$	96	$	582	$	16,623
At December 31, 2024
Fixed-maturity:
Corporate	$	8,652	$	61	$	333	$	8,380
States, municipalities and political subdivisions	4,976		15		270		4,721
Government-sponsored enterprises	2,282		1		9		2,274
Asset-backed	567		1		17		551
United States government	228		—		2		226
Foreign government	30		—		—		30

Total fixed-maturity	16,735		78		631		16,182
Short-term	298		—		—		298




Total fixed-maturity and short-term investments	$	17,033	$	78	$	631	$	16,480

The decrease in net unrealized investment losses in our fixed-maturity portfolio at March 31, 2025, is primarily due to a decrease in U.S. Treasury yields partially offset by a widening of corporate credit spreads. Our asset-backed securities had an average rating of Aa1/AA at both March 31, 2025, and December 31, 2024.

The table below provides fair values and gross unrealized losses by investment category and by the duration of the continuous unrealized loss positions:


(Dollars in millions)	Less than 12 months				12 months or more				Total
At March 31, 2025	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Fixed-maturity:
Corporate	$	2,184	$	53	$	3,487	$	225	$	5,671	$	278
States, municipalities and political subdivisions	1,565		36		2,075		255		3,640		291
Government-sponsored enterprises	1,002		2		102		1		1,104		3
Asset-backed	222		4		88		5		310		9
United States government	—		—		95		1		95		1
Foreign government	—		—		—		—		—		—
Total fixed-maturity	4,973		95		5,847		487		10,820		582
Short-term	100		—		—		—		100		—





Total fixed-maturity and short-term investments	$	5,073	$	95	$	5,847	$	487	$	10,920	$	582
At December 31, 2024
Fixed-maturity:
Corporate	$	2,815	$	78	$	3,634	$	255	$	6,449	$	333
States, municipalities and political subdivisions	1,513		25		1,898		245		3,411		270
Government-sponsored enterprises	1,876		8		92		1		1,968		9
Asset-backed	331		10		96		7		427		17
United States government	48		—		100		2		148		2
Foreign government	—		—		3		—		3		—
Total fixed-maturity	6,583		121		5,823		510		12,406		631
Short-term	100		—		—		—		100		—




Total fixed-maturity and short-term investments	$	6,683	$	121	$	5,823	$	510	$	12,506	$	631

Contractual maturity dates for our fixed-maturity and short-term investments were:


(Dollars in millions)	Amortized cost		Fair value		% of fair value
At March 31, 2025
Maturity dates:
Due in one year or less	$	1,225	$	1,222	7.4	%
Due after one year through five years	3,802		3,774		22.7
Due after five years through ten years	3,832		3,759		22.6
Due after ten years	8,250		7,868		47.3
Total	$	17,109	$	16,623	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 following table provides investment income and investment gains and losses, net:


(Dollars in millions)	Three months ended March 31,
		2025		2024
Investment income:
Interest		$	210	$	169
Dividends		67		72
Other		7		7
Total		284		248
Less investment expenses		4		3
Total		$	280	$	245

Investment gains and losses, net:
Equity securities:
Investment gains and losses on securities sold, net		$	(1)	$	(11)
Unrealized gains and losses on securities still held, net		(71)		613
Subtotal		(72)		602
Fixed-maturity securities:

Gross realized losses		—		(1)
Change in allowance for credit losses, net		(2)		(9)

Subtotal		(2)		(10)

Other		7		20

Total		$	(67)	$	612

The fair value of our equity portfolio was $11.118 billion and $11.185 billion at March 31, 2025, and December 31, 2024, respectively. Apple, Inc. (Nasdaq:AAPL), an equity holding, was our largest single investment holding with a fair value of $786 million and $891 million, which was 7.3% and 8.2% of our publicly traded common equities portfolio and 2.8% and 3.2% of the total investment portfolio at March 31, 2025, and December 31, 2024, respectively.

The allowance for credit losses on fixed-maturity securities was $35 million and $33 million at March 31, 2025, and December 31, 2024, respectively. There were no reductions in the allowance for credit losses for securities sold during the three months ended March 31, 2025, and 2024.

There were 3,679 and 3,723 fixed-maturity and short-term investments in a total unrealized loss position of $582 million and $631 million at March 31, 2025, and December 31, 2024, respectively. Of those totals, 34 and 19 fixed-maturity securities had fair values below 70% of amortized cost at March 31, 2025, and December 31, 2024, respectively.