Our fixed maturity securities investments have been designated as available-for-sale ("AFS"), and are carried at fair value, net of allowance for expected credit losses, with unrealized gains and losses included in Accumulated Other Comprehensive Income ("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. The Company’s consolidated investments as of March 31, 2025 and December 31, 2024 are summarized as follows:


	March 31, 2025
	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available-for-sale securities	(In millions)
Asset-backed securities	$	16,435	$	(15)	$	174	$	(326)	$	16,268
Commercial mortgage-backed securities	5,312		(50)		51		(171)		5,142
Corporates	25,223		(19)		156		(2,612)		22,748
Hybrids	537		—		3		(28)		512
Municipals	1,636		—		5		(231)		1,410
Residential mortgage-backed securities	2,787		(1)		41		(79)		2,748
U.S. Government	671		—		5		(4)		672
Foreign Governments	372		—		1		(49)		324
Total available-for-sale securities	$	52,973	$	(85)	$	436	$	(3,500)	$	49,824


	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/asset-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

As of March 31, 2025 and December 31, 2024, the Company's accrued interest receivable balance, excluding accrued interest receivable balances related to mortgage loans discussed below under "Mortgage Loans," was $484 million and $476 million, respectively. Accrued interest receivable is classified within Prepaid expenses and other assets within the unaudited Condensed 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 us for general purposes. The collateral investments had a fair value of $4,740 million and $4,289 million as of March 31, 2025 and December 31, 2024, respectively.


	March 31, 2025				December 31, 2024
	(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	$	1,003	$	999	$	961	$	955
Due after one year through five years	5,118		5,086		4,616		4,544
Due after five years through ten years	5,519		5,404		5,311		5,126
Due after ten years	16,799		14,177		16,761		13,959
Subtotal	28,439		25,666		27,649		24,584
Other securities, which provide for periodic payments:
Asset-backed securities	16,435		16,268		15,784		15,656
Commercial mortgage-backed securities	5,312		5,142		5,379		5,182

Residential mortgage-backed securities	2,787		2,748		2,869		2,796
Subtotal	24,534		24,158		24,032		23,634
Total fixed maturity available-for-sale securities	$	52,973	$	49,824	$	51,681	$	48,218

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 unaudited Condensed 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 unaudited Condensed 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 unaudited Condensed Consolidated Statements of Earnings. The remainder of unrealized loss is held in AOCI. As of March 31, 2025 and December 31, 2024, our allowance for expected credit losses for AFS securities was $85 million and $67 million, respectively.

The fair value and gross unrealized losses of AFS 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 as of March 31, 2025 and December 31, 2024 were as follows:


	March 31, 2025
	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	(In millions)
Asset-backed securities	$	5,365	$	(48)	$	2,622	$	(263)	$	7,987	$	(311)
Commercial mortgage-backed securities	707		(13)		1,341		(141)		2,048		(154)
Corporates	5,692		(141)		9,867		(2,471)		15,559		(2,612)
Hybrids	100		(5)		306		(23)		406		(28)
Municipals	179		(9)		1,025		(222)		1,204		(231)
Residential mortgage-backed securities	495		(4)		440		(69)		935		(73)
U.S. Government	80		—		104		(4)		184		(4)
Foreign Government	90		(3)		182		(47)		272		(50)
Total available-for-sale securities	$	12,708	$	(223)	$	15,887	$	(3,240)	$	28,595	$	(3,463)
Total number of available-for-sale securities in an unrealized loss position less than twelve months											1,961
Total number of available-for-sale securities in an unrealized loss position twelve months or longer											2,227
Total number of available-for-sale securities in an unrealized loss position											4,188


	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	(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

The unrealized losses as of March 31, 2025 and December 31, 2024 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 March 31, 2025, our allowance for expected credit loss was $85 million. We believe the unrealized loss position for which we have not recorded an allowance for expected credit loss as of March 31, 2025 was primarily attributable to interest rate increases, near-term illiquidity, and other macroeconomic uncertainties as opposed to issuer specific credit concerns.

Commercial mortgage loans (“CMLs”) represented approximately 4% of our total investments reported on the unaudited Condensed Consolidated Balance Sheets for both March 31, 2025 and December 31, 2024. 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:


	March 31, 2025				December 31, 2024
	Gross Carrying Value		% of Total		Gross Carrying Value		% of Total
Property Type:	(In millions)				(In millions)


Hotel	$	17	1	%	$	17	1	%
Industrial	657		23		657		24
Mixed Use	11		—		11		—
Multifamily	1,024		37		1,006		37
Office	349		12		349		13
Retail	75		3		98		4
Student Housing	83		3		83		3
Other	589		21		501		18
Total CMLs, gross of valuation allowance	$	2,805	100	%	$	2,722	100	%
Allowance for expected credit loss	(17)				(17)
Total CMLs, net of valuation allowance	$	2,788			$	2,705

U.S. Region:
East North Central	$	99	4	%	$	98	4	%
East South Central	75		3		75		3
Middle Atlantic	348		12		354		13
Mountain	409		15		409		15
New England	164		6		164		6
Pacific	726		26		706		26
South Atlantic	742		26		683		25
West North Central	62		2		62		2
West South Central	180		6		171		6

Total CMLs, gross of valuation allowance	$	2,805	100	%	$	2,722	100	%
Allowance for expected credit loss	(17)				(17)
Total CMLs, net of valuation allowance	$	2,788			$	2,705

An individual loan, or a portion thereof, is charged off when it is determined to be uncollectible. There were no charge offs for CMLs during the three month period ended March 31, 2025 and for the year ended December 31, 2024. CMLs segregated by aging of the loans (by year of origination) as of March 31, 2025 and December 31, 2024, were as follows, gross of valuation allowances:


	March 31, 2025

	Amortized Cost by Origination Year
	2025		2024		2023		2022		2021		Prior		Total
CMLs	(In millions)
Current (less than 30 days past due)	$	99	$	283	$	228	$	290	$	1,253	$	642	$	2,795
30-89 days past due	—		—		—		—		—		—		—
90 days or more past due	—		—		—		—		—		10		10
Total CMLs	$	99	$	283	$	228	$	290	$	1253	$	652	$	2,805


	December 31, 2024

	Amortized Cost by Origination Year
	2024		2023		2022		2021		2020		Prior		Total
CMLs	(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 CMLs	$	273	$	227	$	290	$	1,253	$	469	$	210	$	2,722

Loan-to-value (“LTV”) and debt service coverage (“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
March 31, 2025	(In millions)
LTV Ratios:
Less than 50.00%	$	437	$	40	$	—		$	477	17	%	$	467	18	%
50.00% to 59.99%	853		141		12			1,006		36		909		36
60.00% to 74.99%	1,251		54		—			1,305		46		1,141		45
75.00% to 84.99%	4		4		9			17		1		17		1
CMLs	$	2,545	$	239	$	21		$	2,805	100	%	$	2,534	100	%

December 31, 2024
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
CMLs	$	2,535	$	166	$	21		$	2,722	100	%	$	2,404	100	%


	March 31, 2025

	Amortized Cost by Origination Year
	2025		2024		2023		2022		2021		Prior		Total
CMLs	(In millions)
LTV Ratios:
Less than 50.00%	$	24	$	73	$	100	$	19	$	74	$	187	$	477
50.00% to 59.99%	—		115		53		149		346		343		1,006
60.00% to 74.99%	75		91		71		113		833		122		1,305
75.00% to 84.99%	—		4		4		9		—		—		17
Total CMLs	$	99	$	283	$	228	$	290	$	1253	$	652	$	2,805
CMLs
DSCR
Greater than 1.25x	$	89	$	112	$	190	$	278	$	1,241	$	635	$	2,545
1.00x - 1.25x	10		171		38		3		—		17		239
Less than 1.00x	—		—		—		9		12		—		21
Total CMLs	$	99	$	283	$	228	$	290	$	1253	$	652	$	2,805


	December 31, 2024

	Amortized Cost by Origination Year
	2024		2023		2022		2021		2020		Prior		Total
CMLs	(In millions)
LTV Ratios:
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 CMLs	$	273	$	227	$	290	$	1,253	$	469	$	210	$	2,722
CMLs
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 CMLs	$	273	$	227	$	290	$	1,253	$	469	$	210	$	2,722

Residential mortgage loans (“RMLs”) represented approximately 6% and 5% of our total investments reported on the unaudited Condensed Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024, respectively. Our RMLs are primarily 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:


	March 31, 2025
	Amortized Cost		% of Total
U.S. States:	(In millions)
Florida	$	176	5	%


All other states (a)	3,458		95
Total RMLs, gross of valuation allowance	3,634		100	%
Allowance for expected credit loss	(56)
Total RMLs, net of valuation allowance	$	3,578


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






All other states (a)	3,110		95
Total RMLs, gross of valuation allowance	3,274		100	%
Allowance for expected credit loss	(53)
Total RMLs, net of valuation allowance	$	3,221

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 as of March 31, 2025 and December 31, 2024, was as follows:


	March 31, 2025				December 31, 2024
	Amortized Cost		% of Total		Amortized Cost		% of Total
Performance indicators:	(In millions)				(In millions)
Performing	$	3,562	98	%	$	3,188	97	%
Non-performing	72		2		86		3
Total RMLs, gross of valuation allowance	3,634		100	%	3,274		100	%
Allowance for expected loan loss	(56)				(53)
Total RMLs, net of valuation allowance	$	3,578			$	3,221

An individual loan, or a portion thereof, is charged off when it is determined to be uncollectible. There were no charge offs recorded by RMLs during the three months ended March 31, 2025 or during the year ended December 31, 2024. RMLs segregated by aging of the loans (by year of origination) as of March 31, 2025 and December 31, 2024, were as follows, gross of valuation allowances:


	March 31, 2025

	Amortized Cost by Origination Year
	2025		2024		2023		2022		2021		Prior		Total
RMLs	(In millions)
Current (less than 30 days past due)	$	311	$	719	$	372	$	886	$	793	$	460	$	3,541
30-89 days past due	—		4		2		6		2		7		21
90 days or more past due	—		1		2		11		26		32		72
Total RMLs	$	311	$	724	$	376	$	903	$	821	$	499	$	3,634


	December 31, 2024

	Amortized Cost by Origination Year

	2024		2023		2022		2021		2020		Prior		Total
RMLs	(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 RMLs	$	614	$	376	$	928	$	840	$	176	$	340	$	3,274

Non-accrual loans by amortized cost as of March 31, 2025 and December 31, 2024, were as follows:

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 March 31, 2025 and December 31, 2024, we had $82 million and $94 million, respectively, of mortgage loans that were over 90 days past due.

We estimate expected credit losses for our commercial and residential mortgage loan 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 unaudited Condensed Consolidated Statements of Earnings.

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 for the three months ended March 31, 2025 and 2024.

As of March 31, 2025 and December 31, 2024, the accrued interest receivable balance on CMLs totaled $9 million and $8 million, respectively, and the accrued interest receivable on RMLs totaled $31 million and $28 million, respectively. Accrued interest receivable is classified within Prepaid expenses and other assets within the unaudited Condensed Consolidated Balance Sheets.


	Three months ended March 31,
	2025		2024
	(In millions)
Fixed maturity securities, available-for-sale	$	569	$	534
Equity securities	8		10
Preferred securities	6		8
Mortgage loans	82		66

Invested cash and short-term investments	53		47

Limited partnerships	55		54
Tax deferred property exchange income	29		32
Other investments	22		29
Gross investment income	824		780
Investment expense	(64)		(70)
Interest and investment income	$	760	$	710

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 $184 million and $127 million for the three months ended March 31, 2025 and 2024, respectively.


	Three months ended March 31,
	2025		2024
	(In millions)
Net realized (losses) gains on fixed maturity available-for-sale securities	$	(2)	$	(19)
Net realized/unrealized gains (losses) on equity securities (1)	(38)		54
Net realized/unrealized gains (losses) on preferred securities (2)	(2)		16
Net realized/unrealized gains (losses) on other invested assets	(1)		60
Change in allowance for expected credit losses	(22)		—
Derivatives and embedded derivatives:
Realized gains (losses) on certain derivative instruments	(25)		21
Unrealized gains (losses) on certain derivative instruments	(159)		156
Change in fair value of reinsurance related embedded derivatives (3)	(41)		(18)
Change in fair value of other derivatives and embedded derivatives	3		5
Net realized/unrealized (losses) gains on derivatives and embedded derivatives	(222)		164
Recognized gains and losses, net	$	(287)	$	275

Recognized gains and losses, net 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 gains and (losses) attributable to these agreements, and thus excluded from the totals in the table above, were $42 million and $(19) million for the three months ended March 31, 2025 and March 31, 2024, respectively.

We own investments in variable interest entities ("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 we participate in the benefits from VIEs in which we invest, but do not consolidate, the substantive power to make the key economic decisions for each respective VIE resides with entities not under our common control. It is for this reason that we are 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 unaudited Condensed 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 unaudited Condensed Consolidated Balance Sheets.

For limited partnerships, our maximum loss exposure with respect to these VIEs is limited to the investment carry amounts reported in our unaudited Condensed Consolidated Balance Sheets in addition to any required unfunded commitments. For fixed maturity securities, our maximum loss exposure with respect to these VIEs is limited to the amortized cost in addition to any required unfunded commitments (also refer to Note F Commitments and Contingencies).


	March 31, 2025				December 31, 2024
	(In millions)				(In millions)
	Carrying Value		Maximum Loss Exposure		Carrying Value		Maximum Loss Exposure
Investment in unconsolidated affiliates	$	4,276	$	5,451	$	3,565	$	4,703
Fixed maturity securities	23,774		24,747		23,242		24,242
Total unconsolidated VIE investments	$	28,050	$	30,198	$	26,807	$	28,945