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v3.25.2

Investments | 6 Months Ended
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Jun. 30, 2025
Investments [Abstract] |
Investment | 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 June 30, 2025 |  |  | gains |  | losses |
Fixed-maturity: |  |  |  |  |  |  |  |
Corporate |  | $ | 9,136 |  |  | $ | 107 |  |  | $ | 256 |  |  | $ | 8,987 |
States, municipalities and political subdivisions |  | 5,004 |  |  | 8 |  |  | 304 |  |  | 4,708 |
Government-sponsored enterprises |  | 2,455 |  |  | 1 |  |  | 9 |  |  | 2,447 |
Asset-backed |  | 736 |  |  | 8 |  |  | 12 |  |  | 732 |
United States government |  | 184 |  |  | — |  |  | 1 |  |  | 183 |
Foreign government |  | 20 |  |  | — |  |  | — |  |  | 20 |
Total fixed-maturity |  | 17,535 |  |  | 124 |  |  | 582 |  |  | 17,077 |
Short-term |  | 100 |  |  | — |  |  | — |  |  | 100 |
Total fixed-maturity and short-term investments |  | $ | 17,635 |  |  | $ | 124 |  |  | $ | 582 |  |  | $ | 17,177 |
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 June 30, 2025, is primarily due to a decrease in U.S. Treasury yields partially offset by a slight widening of corporate credit spreads. Our asset-backed securities had an average rating of Aa2/AA and Aa1/AA at June 30, 2025 and December 31, 2024, respectively. 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 June 30, 2025 |  | Fair value |  | Unrealized losses |  | Fair value |  | Unrealized losses |  | Fair value |  | Unrealized losses
Fixed-maturity: |  |  |  |  |  |  |  |  |  |  |  |
Corporate |  | $ | 1,738 |  |  | $ | 51 |  |  | $ | 3,037 |  |  | $ | 205 |  |  | $ | 4,775 |  |  | $ | 256 |
States, municipalities and political subdivisions |  | 1,505 |  |  | 49 |  |  | 2,062 |  |  | 255 |  |  | 3,567 |  |  | 304 |
Government-sponsored enterprises |  | 1,427 |  |  | 9 |  |  | 124 |  |  | — |  |  | 1,551 |  |  | 9 |
Asset-backed |  | 237 |  |  | 7 |  |  | 78 |  |  | 5 |  |  | 315 |  |  | 12 |
United States government |  | — |  |  | — |  |  | 62 |  |  | 1 |  |  | 62 |  |  | 1 |
Foreign government |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total fixed-maturity |  | 4,907 |  |  | 116 |  |  | 5,363 |  |  | 466 |  |  | 10,270 |  |  | 582 |
Short-term |  | 100 |  |  | — |  |  | — |  |  | — |  |  | 100 |  |  | — |
Total fixed-maturity and short-term investments |  | $ | 5,007 |  |  | $ | 116 |  |  | $ | 5,363 |  |  | $ | 466 |  |  | $ | 10,370 |  |  | $ | 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 June 30, 2025 |  |  |
Maturity dates: |  |  |  |  |  |
Due in one year or less |  | $ | 1,087 |  |  | $ | 1,082 |  |  | 6.3 | %
Due after one year through five years |  | 3,766 |  |  | 3,760 |  |  | 21.9 |
Due after five years through ten years |  | 3,955 |  |  | 3,916 |  |  | 22.8 |
Due after ten years |  | 8,827 |  |  | 8,419 |  |  | 49.0 |
Total |  | $ | 17,635 |  |  | $ | 17,177 |  |  | 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 June 30, |  | Six months ended June 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Investment income: |  |  |  |  |  |  |
Interest | $ | 214 |  |  | $ | 173 |  |  | $ | 424 |  |  | $ | 342 |
Dividends | 70 |  |  | 69 |  |  | 137 |  |  | 141 |
Other | 5 |  |  | 4 |  |  | 12 |  |  | 11 |
Total | 289 |  |  | 246 |  |  | 573 |  |  | 494 |
Less investment expenses | 4 |  |  | 4 |  |  | 8 |  |  | 7 |
Total | $ | 285 |  |  | $ | 242 |  |  | $ | 565 |  |  | $ | 487 |
Investment gains and losses, net: |  |  |  |  |  |  |
Equity securities: |  |  |  |  |  |  |
Investment gains and losses on securities sold, net | $ | (1) |  |  | $ | 7 |  |  | $ | (3) |  |  | $ | 4 |
Unrealized gains and losses on securities still held, net | 481 |  |  | 142 |  |  | 411 |  |  | 747 |
Subtotal | 480 |  |  | 149 |  |  | 408 |  |  | 751 |
Fixed-maturity securities: |  |  |  |  |  |  |
Gross realized gains | 1 |  |  | 4 |  |  | 1 |  |  | 4 |
Gross realized losses | — |  |  | (6) |  |  | — |  |  | (7) |
Change in allowance for credit losses, net | (13) |  |  | (16) |  |  | (15) |  |  | (25) |
Subtotal | (12) |  |  | (18) |  |  | (14) |  |  | (28) |
Other | 5 |  |  | 6 |  |  | 12 |  |  | 26 |
Total | $ | 473 |  |  | $ | 137 |  |  | $ | 406 |  |  | $ | 749 |
The fair value of our equity portfolio was $11.649 billion and $11.185 billion at June 30, 2025, and December 31, 2024, respectively. Microsoft Corporation (Nasdaq:MSFT) and Apple Inc. (Nasdaq:AAPL), equity holdings, were our largest single investment holdings with fair values of $903 million and $891 million, which were 8.0% and 8.2% of our publicly traded common equities portfolio and 3.1% and 3.2% of the total investment portfolio at June 30, 2025, and December 31, 2024, respectively. The allowance for credit losses on fixed-maturity securities was $47 million and $33 million at June 30, 2025, and December 31, 2024, respectively. Reductions in the allowance for credit losses for securities sold were $1 million for both the three and six months ended June 30, 2025. There were 3,537 and 3,723 fixed-maturity and short-term investments in a total unrealized loss position of $582 million and $631 million at June 30, 2025, and December 31, 2024, respectively. Of those totals, 48 and 19 fixed-maturity securities had fair values below 70% of amortized cost at June 30, 2025, and December 31, 2024, respectively.

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- Definition The entire disclosure for investment. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/320/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Name Accounting Standards Codification -Topic 321 -Publisher FASB -URI https://asc.fasb.org/321/tableOfContent Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Name Accounting Standards Codification -Topic 325 -Publisher FASB -URI https://asc.fasb.org/325/tableOfContent + Details
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