Accumulated Other Comprehensive Income

3 Months Ended

Mar. 31, 2025

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 March 31,
	2025						2024
	Before tax		Income tax		Net		Before tax		Income tax		Net
Investments:
AOCI, beginning of period	$	(553)	$	(119)	$	(434)	$	(570)	$	(123)	$	(447)


OCI before investment gains and losses, net, recognized in net income	65		14		51		(65)		(13)		(52)
Investment gains and losses, net, recognized in net income	2		—		2		10		2		8
OCI	67		14		53		(55)		(11)		(44)
AOCI, end of period	$	(486)	$	(105)	$	(381)	$	(625)	$	(134)	$	(491)

Pension obligations:
AOCI, beginning of period	$	75	$	17	$	58	$	30	$	8	$	22
OCI excluding amortization recognized in net income	—		—		—		—		—		—
Amortization recognized in net income	(1)		—		(1)		—		—		—
OCI	(1)		—		(1)		—		—		—
AOCI, end of period	$	74	$	17	$	57	$	30	$	8	$	22

Life policy reserves, reinsurance recoverable and other:
AOCI, beginning of period	$	85	$	18	$	67	$	(13)	$	(3)	$	(10)


OCI before investment gains and losses, net, recognized in net income	(17)		(3)		(14)		47		10		37
Investment gains and losses, net, recognized in net income	—		—		—		—		—		—
OCI	(17)		(3)		(14)		47		10		37
AOCI, end of period	$	68	$	15	$	53	$	34	$	7	$	27

Summary of AOCI:
AOCI, beginning of period	$	(393)	$	(84)	$	(309)	$	(553)	$	(118)	$	(435)


Investments OCI	67		14		53		(55)		(11)		(44)
Pension obligations OCI	(1)		—		(1)		—		—		—
Life policy reserves, reinsurance recoverable and other OCI	(17)		(3)		(14)		47		10		37
Total OCI	49		11		38		(8)		(1)		(7)
AOCI, end of period	$	(344)	$	(73)	$	(271)	$	(561)	$	(119)	$	(442)

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.