Our investments in fixed maturity securities have been designated as AFS, and are carried at fair value, net of allowance for expected credit losses, with unrealized gains and losses included within AOCI, net of deferred income taxes. Our preferred and equity securities investments are carried at fair value with unrealized gains and losses included in net earnings. Our consolidated investments are summarized as follows:


	December 31, 2024
	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available-for-sale securities	(In millions)
Asset-backed securities	$	15,784	$	(13)	$	202	$	(317)	$	15,656
Commercial mortgage-backed securities	5,379		(49)		53		(201)		5,182
Corporates	24,425		(5)		108		(2,832)		21,696
Hybrids	604		—		6		(29)		581
Municipals	1,638		—		3		(255)		1,386
Residential mortgage-backed securities	2,869		—		32		(105)		2,796
U.S. Government	645		—		2		(10)		637
Foreign Governments	337		—		—		(53)		284
Total available-for-sale securities	$	51,681	$	(67)	$	406	$	(3,802)	$	48,218


	December 31, 2023
	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available-for-sale securities	(In millions)
Asset-backed securities	$	14,631	$	(11)	$	191	$	(469)	$	14,342
Commercial mortgage-backed/asset-backed securities	4,797		(22)		23		(323)		4,475
Corporates	20,133		(6)		186		(2,417)		17,896
Hybrids	668		—		3		(53)		618
Municipals	1,826		—		14		(229)		1,611
Residential mortgage-backed securities	2,507		(3)		29		(104)		2,429
U.S. Government	679		—		8		(9)		678
Foreign Governments	365		—		3		(44)		324
Total available-for-sale securities	$	45,606	$	(42)	$	457	$	(3,648)	$	42,373

As of December 31, 2024 and 2023, the Company's accrued interest receivable balance, excluding accrued interest receivable balances related to mortgage loans discussed below under "Mortgage Loans", was $476 million and $450 million, respectively. Accrued interest receivable is classified within Prepaid expenses and other assets within the Consolidated Balance Sheets.

In accordance with our FHLB agreements, the investments supporting the funding agreement liabilities are pledged as collateral to secure the FHLB funding agreement liabilities and are not available to the Company for general purposes. The collateral investments had a fair value of $4,289 million and $4,345 million as of December 31, 2024 and 2023, respectively.

The amortized cost and fair value of fixed maturity securities by contractual maturities, as applicable, are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations.


	December 31, 2024				December 31, 2023
	(in millions)				(in millions)
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Corporates, Non-structured Hybrids, Municipal and Government securities:
Due in one year or less	$	961	$	955	$	703	$	687
Due after one year through five years	4,616		4,544		4,320		4,209
Due after five years through ten years	5,311		5,126		3,195		3,048
Due after ten years	16,761		13,959		15,453		13,183
	27,649		24,584		23,671		21,127
Other securities, which provide for periodic payments:
Asset-backed securities	15,784		15,656		14,631		14,342
Commercial mortgage-backed securities	5,379		5,182		4,797		4,475

Residential mortgage-backed securities	2,869		2,796		2,507		2,429
	24,032		23,634		21,935		21,246
Total fixed maturity available-for-sale securities	$	51,681	$	48,218	$	45,606	$	42,373

We regularly review AFS securities for declines in fair value that we determine to be credit related. For our fixed maturity securities, we generally consider the following in determining whether our unrealized losses are credit related, and if so, the magnitude of the credit loss:

We recognize an allowance for current expected credit losses on fixed maturity securities in an unrealized loss position when it is determined, using the factors discussed above, a component of the unrealized loss is related to credit. We measure the credit loss using a discounted cash flow model that utilizes the single best estimate cash flow and the recognized credit loss is limited to the total unrealized loss on the security (i.e. the fair value floor). Cash flows are discounted using the implicit yield of bonds at their time of purchase and the current book yield for asset and mortgage backed securities as well as variable rate securities. We recognize the expected credit losses in Recognized gains and losses, net in the Consolidated Statements of Earnings, with an offset for the amount of non-credit impairments recognized in AOCI. We do not measure a credit loss allowance on accrued investment income because we write-off accrued interest through Interest and investment income when collectability concerns arise.

If we intend to sell a fixed maturity security or it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis and the fair value of the security is below amortized cost, we will write down the security to current fair value, with a corresponding charge, net of any amount previously recognized as an allowance for expected credit

loss, to Recognized gains and losses, net in the accompanying Consolidated Statements of Earnings. If we do not intend to sell a fixed maturity security or it is more likely than not that we will not be required to sell a fixed maturity security before recovery of its amortized cost basis but believe amounts related to a security are uncollectible , an impairment is deemed to have occurred and the amortized cost is written down to the estimated recovery value with a corresponding charge, net of any amount previously recognized as an allowance for expected credit loss, to Recognized gains and losses, net in the accompanying Consolidated Statements of Earnings. The remainder of unrealized loss is held in AOCI. As of December 31, 2024 and 2023, our allowance for expected credit losses for AFS securities was $67 million and $42 million, respectively.

The fair value and gross unrealized losses of available-for-sale securities, excluding securities in an unrealized loss position with an allowance for expected credit loss, aggregated by investment category and duration of fair value below amortized cost were as follows:


	December 31, 2024
	Less than 12 months				12 months or longer				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Available-for-sale securities	(Dollars in millions)
Asset-backed securities	$	1,164	$	(30)	$	2,637	$	(276)	$	3,801	$	(306)
Commercial mortgage-backed securities	727		(11)		1,513		(175)		2,240		(186)
Corporates	6,831		(208)		9,866		(2,624)		16,697		(2,832)
Hybrids	105		(4)		380		(25)		485		(29)
Municipals	261		(12)		1,006		(243)		1,267		(255)
Residential mortgage-backed securities	899		(16)		460		(89)		1,359		(105)
U.S. Government	313		(4)		122		(5)		435		(9)
Foreign Government	120		(5)		157		(48)		277		(53)
Total available-for-sale securities	$	10,420	$	(290)	$	16,141	$	(3,485)	$	26,561	$	(3,775)
Total number of available-for-sale securities in an unrealized loss position less than twelve months											2,005
Total number of available-for-sale securities in an unrealized loss position twelve months or longer											2,305
Total number of available-for-sale securities in an unrealized loss position											4,310


	December 31, 2023
	Less than 12 months				12 months or longer				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Available-for-sale securities
Asset-backed securities	$	1,707	$	(56)	$	5,835	$	(404)	$	7,542	$	(460)
Commercial mortgage-backed securities	819		(53)		1,922		(235)		2,741		(288)
Corporates	2,387		(134)		10,739		(2,283)		13,126		(2,417)
Hybrids	60		(2)		483		(51)		543		(53)
Municipals	399		(49)		920		(179)		1,319		(228)
Residential mortgage-backed securities	336		(5)		662		(89)		998		(94)
U.S. Government	84		—		159		(9)		243		(9)
Foreign Government	49		(3)		188		(41)		237		(44)
Total available-for-sale securities	$	5,841	$	(302)	$	20,908	$	(3,291)	$	26,749	$	(3,593)
Total number of available-for-sale securities in an unrealized loss position less than twelve months											1,035
Total number of available-for-sale securities in an unrealized loss position twelve months or longer											2,846
Total number of available-for-sale securities in an unrealized loss position											3,881

We determined the unrealized losses were caused by higher treasury rates compared to those at the time of the F&G acquisition or the purchase of the security if later. For securities in an unrealized loss position as of December 31, 2024, our allowance for expected credit loss was $67 million. We believe the unrealized loss position for which we have not recorded an

allowance for expected credit loss as of December 31, 2024 was primarily attributable to interest rate increases, near-term illiquidity, and other macroeconomic uncertainties as opposed to issuer specific credit concerns.

CMLs represented approximately 4% of our total investments as of December 31, 2024 and 2023. The mortgage loans in our investment portfolio are generally comprised of high quality commercial first lien and mezzanine real estate loans. Mortgage loans are primarily on income producing properties including industrial properties, retail buildings, multifamily properties and office buildings. We diversify our CML portfolio by geographic region and property type to attempt to reduce concentration risk. We continuously evaluate CMLs based on relevant current information to ensure properties are performing at a consistent and acceptable level to secure the related debt. The distribution of CMLs, gross of valuation allowances, by property type and geographic region is reflected in the following tables:


	December 31, 2024				December 31, 2023
	Gross Carrying Value		% of Total		Gross Carrying Value		% of Total
Property Type:	(Dollars in millions)


Hotel	$	17	1	%	$	18	1	%
Industrial	657		24		616		24
Mixed Use	11		—		11		—
Multifamily	1,006		37		1,012		40
Office	349		13		316		13
Retail	98		4		102		4
Student Housing	83		3		83		3
Other	501		18		392		15
Total commercial mortgage loans, gross of valuation allowance	$	2,722	100	%	$	2,550	100	%
Allowance for expected credit loss	(17)				(12)
Total commercial mortgage loans, net of valuation allowance	$	2,705			$	2,538

U.S. Region:
East North Central	$	98	4	%	$	151	6	%
East South Central	75		3		75		3
Middle Atlantic	354		13		354		14
Mountain	409		15		352		14
New England	164		6		168		6
Pacific	706		26		766		30
South Atlantic	683		25		563		22
West North Central	62		2		4		—
West South Central	171		6		117		5

Total commercial mortgage loans, gross of valuation allowance	$	2,722	100	%	$	2,550	100	%
Allowance for expected credit loss	(17)				(12)
Total commercial mortgage loans, net of valuation allowance	$	2,705			$	2,538


	December 31, 2024

	Amortized Cost by Origination Year
	2024		2023		2022		2021		2020		Prior		Total
	(In millions)
Current (less than 30 days past due)	$	273	$	227	$	290	$	1,253	$	469	$	201	$	2,713
30-89 days past due	—		—		—		—		—		—		—
90 days or more past due	—		—		—		—		—		9		9
Total commercial mortgage loans	$	273	$	227	$	290	$	1,253	$	469	$	210	$	2,722

Charge offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—


	December 31, 2023

	Amortized Cost by Origination Year
	2023		2022		2021		2020		2019		Prior		Total
	(In millions)
Current (less than 30 days past due)	$	213	$	288	$	1,256	$	512	$	—	$	259	$	2,528
30-89 days past due	—		—		—		—		—		—		—
90 days or more past due	—		—		—		—		—		—		—
Total commercial mortgage loans(a)	$	213	$	288	$	1,256	$	512	$	—	$	259	$	2,528

Charge offs	$	—	$	—	$	—	$	—	$	—	$	3	$	3

LTV and DSC ratios are measures commonly used to assess the risk and quality of mortgage loans. The LTV ratio is expressed as a percentage of the amount of the loan relative to the value of the underlying property. A LTV ratio in excess of 100% indicates the unpaid loan amount exceeds the underlying collateral. The DSC ratio, based upon the most recently received financial statements, is expressed as a percentage of the amount of a property’s net income to its debt service payments. A DSC ratio of less than 1.00 indicates that a property’s operations do not generate sufficient income to cover debt payments. We normalize our DSC ratios to a 25-year amortization period for purposes of our general loan allowance evaluation.


	Debt-Service Coverage Ratios						Total Amount	% of Total		Estimated Fair Value		% of Total
	>1.25		1.00 - 1.25		<1.00
December 31, 2024	(Dollars in millions)
LTV Ratios:
Less than 50.00%	$	490	$	34	$	—		$	524	19	%	$	501	21	%
50.00% to 59.99%	803		112		12			927		34		826		34
60.00% to 74.99%	1,238		16		—			1,254		46		1,060		44
75.00% to 84.99%	4		4		9			17		1		17		1
Total Commercial mortgage loans	$	2,535	$	166	$	21		$	2,722	100	%	$	2,404	100	%

December 31, 2023
LTV Ratios:
Less than 50.00%	$	519	$	4	$	10		$	533	21	%	$	510	23	%
50.00% to 59.99%	764		—		—			764		30		679		30
60.00% to 74.99%	1,160		56		—			1,216		48		1,028		46
75.00% to 84.99%	—		6		9			15		1		14		1
Total Commercial mortgage loans (a)	$	2,443	$	66	$	19		$	2,528	100	%	$	2,231	100	%

(a) Excludes loans under development with an amortized cost and estimated fair value of $22 million at December 31, 2023.


	December 31, 2024

	Amortized Cost by Origination Year
	2024		2023		2022		2021		2020		Prior		Total
LTV Ratios:	(In millions)
Less than 50.00%	$	66	$	99	$	19	$	74	$	189	$	77	$	524
50.00% to 59.99%	112		53		149		321		159		133		927
60.00% to 74.99%	91		71		113		858		121		—		1,254
75.00% to 84.99%	4		4		9		—		—		—		17

Total commercial mortgage loans	$	273	$	227	$	290	$	1,253	$	469	$	210	2,722
DSCR
Greater than 1.25x	$	140	$	215	$	278	$	1,241	$	469	$	192	$	2,535
1.00x - 1.25x	133		12		3		—		—		18		166
Less than 1.00x	—		—		9		12		—		—		21
Total commercial mortgage loans	$	273	$	227	$	290	$	1,253	$	469	$	210	$	2,722


	December 31, 2023

	Amortized Cost by Origination Year
	2023		2022		2021		2020		2019		Prior		Total
LTV Ratios:	(In millions)
Less than 50.00%	$	85	$	17	$	77	$	232	$	—	$	122	$	533
50.00% to 59.99%	53		149		267		158		—		137		764
60.00% to 74.99%	69		113		912		122		—		—		1,216
75.00% to 84.99%	6		9		—		—		—		—		15
Total commercial mortgage loans (a)	$	213	$	288	$	1,256	$	512	$	—	$	259	$	2,528
DSCR
Greater than 1.25x	$	154	$	276	$	1,256	$	512	$	—	$	245	$	2,443
1.00x - 1.25x	59		3		—		—		—		4		66
Less than 1.00x	—		9		—		—		—		10		19
Total commercial mortgage loans (a)	$	213	$	288	$	1,256	$	512	$	—	$	259	$	2,528

We recognize a mortgage loan as delinquent when payments on the loan are greater than 30 days past due. At December 31, 2024, we had one CML that was delinquent in principal or interest payments compared to none at December 31, 2023 as shown in the tables above.

RMLs represented approximately 5% of our total investments as of December 31, 2024 and 2023. Our residential mortgage loans are closed end, amortizing loans and 100% of the properties are located in the United States. We diversify our RML portfolio by state to attempt to reduce concentration risk. The distribution of RMLs by state with highest-to-lowest concentration are reflected in the following tables, gross of valuation allowances:


	December 31, 2024
U.S. States:	Amortized Cost (In millions)		% of Total
Florida	$	164	5	%






All Other States (1)	3,110		95
Total residential mortgage loans, gross of valuation allowance	$	3,274	100	%
Allowance for expected credit loss	(53)
Total residential mortgage loans, net of valuation allowance	$	3,221


	December 31, 2023
U.S. States:	Amortized Cost (In millions)		% of Total
Florida	$	163	6	%
New York	129		5
Texas	129		5




All other states (1)	2,431		84
Total residential mortgage loans, gross of valuation allowance	$	2,852	100	%
Allowance for expected credit loss	(54)
Total residential mortgage loans, net of valuation allowance	$	2,798

RMLs have a primary credit quality indicator of either a performing or non-performing loan. We define non-performing RMLs as those that are 90 or more days past due or in non-accrual status, which is assessed monthly. The credit quality of RMLs was as follows:


	December 31, 2024				December 31, 2023
Performance indicators:	Amortized Cost		% of Total		Amortized Cost		% of Total
	(Dollars in millions)
Performing	$	3,188	97	%	$	2,795	98	%
Non-performing	86		3		57		2
Total residential mortgage loans, gross of valuation allowance	$	3,274	100	%	$	2,852	100	%
Allowance for expected loan loss	(53)		—		(54)		—
Total residential mortgage loans, net of valuation allowance	$	3,221	100	%	$	2,798	100	%

There were no charge offs recorded for RMLs during the year ended December 31, 2024. RMLs segregated by aging of the loans (by year of origination) as of December 31, 2024 and 2023 were as follows, gross of valuation allowances:


	December 31, 2024

	Amortized Cost by Origination Year
	2024		2023		2022		2021		2020		Prior		Total
Residential mortgages	(In millions)
Current (less than 30 days past due)	$	610	$	368	$	911	$	805	$	162	$	312	$	3,168
30-89 days past due	1		6		4		6		1		3		21
90 days or more past due	3		2		13		29		13		25		85
Total residential mortgages	$	614	$	376	$	928	$	840	$	176	$	340	$	3,274


	December 31, 2023

	Amortized Cost by Origination Year
	2023		2022		2021		2020		2019		Prior		Total
Residential mortgages	(In millions)
Current (less than 30 days past due)	$	373	$	985	$	854	$	192	$	183	$	192	$	2,779
30-89 days past due	—		4		7		3		—		2		16
90 days or more past due	—		6		16		13		21		1		57
Total residential mortgages	$	373	$	995	$	877	$	208	$	204	$	195	$	2,852

It is our policy to cease to accrue interest on loans that are delinquent for 90 days or more. For loans less than 90 days delinquent, interest is accrued unless it is determined that the accrued interest is not collectible. If a loan becomes 90 days or more delinquent, it is our general policy to initiate foreclosure proceedings unless a workout arrangement to bring the loan current is in place. As of December 31, 2024 and 2023, we had $94 million and $57 million, respectively, of mortgage loans that were over 90 days past due.

Under certain circumstances, modifications are granted to mortgage loans. Generally, the types of concessions may include interest rate reduction, term extension, payment deferrals, principal forgiveness or a combination of these concessions. We had an immaterial amount of mortgage loans modified during the years ended December 31, 2024 and 2023.

We estimate expected credit losses for our CML and RML portfolios using a probability of default/loss given default model. Significant inputs to this model include, where applicable, the loans' current performance, underlying collateral type, location, contractual life, LTV, DSC and Debt to Income or FICO. The model projects losses using a two year reasonable and supportable forecast and then reverts over a three year period to market-wide historical loss experience. Changes in our allowance for expected credit losses on mortgage loans are recognized in Recognized gains and losses, net in the accompanying Consolidated Statements of Earnings.


	Year ended December 31, 2024			Year ended December 31, 2023

		Residential Mortgage		Commercial Mortgage		Total		Residential Mortgage		Commercial Mortgage		Total
Beginning Balance		$	(54)	$	(12)	$	(66)	$	(32)	$	(10)	$	(42)
Provision (expense) benefit for loan losses		1		(5)		(4)		(22)		(5)		(27)

Loans charged-off		—		—		—		—		3		3


Ending Balance		$	(53)	$	(17)	$	(70)	$	(54)	$	(12)	$	(66)

An allowance for expected credit loss is not measured on accrued interest income for CMLs as we have a process to write-off interest on loans that enter into non-accrual status (90 days or more past due). Allowances for expected credit losses are measured on accrued interest income for RMLs and were immaterial as of December 31, 2024 and 2023.

As of December 31, 2024 and 2023, the accrued interest receivable balance on CMLs totaled $8 million and $7 million, respectively. As of December 31, 2024 and 2023, the accrued interest receivable on RMLs totaled $28 million and $24 million, respectively. Accrued interest receivable is classified within Prepaid expenses and other assets within the Consolidated Balance Sheets.


	Year ended
		December 31, 2024		December 31, 2023		December 31, 2022
		(In millions)
Fixed maturity securities, available-for-sale		$	2,261	$	1,911	$	1,489
Equity securities		33		33		31
Preferred securities		34		52		67
Mortgage loans		273		229		186

Invested cash and short-term investments		238		151		61

Limited partnerships		326		231		110
Tax deferred property exchange income		133		166		103
Other investments		125		91		41
Gross investment income		3,423		2,864		2,088
Investment expense		(299)		(257)		(197)
Interest and investment income		$	3,124	$	2,607	$	1,891

The Company’s Interest and investment income is shown net of amounts attributable to certain funds withheld reinsurance agreements, which is passed along to the reinsurer in accordance with the terms of these agreements. Interest and investment income attributable to these agreements, and thus excluded from the totals in the table above, was $636 million, $339 million, and $109 million for the years ended December 31, 2024, 2023 and 2022, respectively.


	Year ended
		December 31, 2024		December 31, 2023		December 31, 2022
		(In millions)
Net realized (losses) gains on fixed maturity available-for-sale securities		$	(9)	$	(155)	$	(253)
Net realized/unrealized gains (losses) on equity securities (1)		2		23		(386)
Net realized/unrealized gains (losses) on preferred securities (2)		12		(1)		(230)
Realized gains (losses) on other invested assets		61		(25)		(68)
Change in allowance for expected credit losses		(33)		(36)		(41)
Derivatives and embedded derivatives:
Realized gains (losses) on certain derivative instruments		254		(211)		(164)
Unrealized (losses) gains on certain derivative instruments		(184)		358		(693)
Change in fair value of reinsurance related embedded derivatives		(32)		(128)		352
Change in fair value of other derivatives and embedded derivatives		12		11		(10)
Realized gains (losses) on derivatives and embedded derivatives		50		30		(515)
Recognized gains and losses, net		$	83	$	(164)	$	(1,493)

Recognized gains and losses is shown net of amounts attributable to certain funds withheld reinsurance agreements which are passed along to the reinsurer in accordance with the terms of these agreements. Recognized (losses) gains attributable to these agreements, and thus excluded from the totals in the table above, was $(30) million, $(123) million and $381 million for the years ended December 31, 2024, 2023 and 2022, respectively.

The Company owns investments in VIEs that are not consolidated within our financial statements. A VIE is an entity that does not have sufficient equity to finance its own activities without additional financial support, where investors lack certain characteristics of a controlling financial interest, or where the entity is structured with non-substantive voting rights. VIEs are consolidated by their ‘primary beneficiary’, a designation given to an entity that receives both the benefits from the VIE as well as the substantive power to make its key economic decisions. While the Company participates in the benefits from VIEs in which it invests, but does not consolidate, the substantive power to make the key economic decisions for each respective VIE resides with entities not under common control with the Company. It is for this reason that the Company is not considered the primary beneficiary for the VIE investments that are not consolidated.

We invest in various limited partnerships and limited liability companies primarily as a passive investor. These investments are primarily in credit funds with a bias towards current income, real assets, or private equity. Limited partnership and limited liability company interests are accounted for under the equity method and are included in Investments in unconsolidated affiliates on our Consolidated Balance Sheets. In addition, we invest in structured investments, which may be VIEs, but for which we are not the primary beneficiary. These structured investments typically invest in fixed income investments and are managed by third parties and include asset-backed securities, commercial mortgage-backed securities and residential mortgage-backed securities included in fixed maturity securities available for sale on our Consolidated Balance Sheets.

Our maximum loss exposure with respect to these VIEs is limited to the investment carrying amounts reported in our Consolidated Balance Sheets for limited partnerships and the amortized costs of certain of our fixed maturity securities, in addition to any required unfunded commitments (also refer to Note H Commitments and Contingencies).


	December 31, 2024				December 31, 2023
	Carrying Value		Maximum Loss Exposure		Carrying Value		Maximum Loss Exposure
	(In millions)
Investment in unconsolidated affiliates	$	3,565	$	4,703	$	3,071	$	4,806
Fixed maturity securities	23,242		24,242		20,837		22,346
Total unconsolidated VIE investments	$	26,807	$	28,945	$	23,908	$	27,152