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 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 June 30, 2025 and December 31, 2024 are summarized as follows:


	June 30, 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	$	18,471	$	(24)	$	185	$	(287)	$	18,345
Commercial mortgage-backed securities	5,537		(53)		65		(159)		5,390
Corporates	24,727		(26)		210		(2,572)		22,339
Hybrids	588		—		3		(25)		566
Municipals	1,584		—		3		(238)		1,349
Residential mortgage-backed securities	2,985		—		54		(78)		2,961
U.S. Government	770		—		7		(4)		773
Foreign Governments	366		—		2		(44)		324
Total available-for-sale securities	$	55,028	$	(103)	$	529	$	(3,407)	$	52,047


	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 June 30, 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 $512 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 $4,624 million and $4,289 million as of June 30, 2025 and December 31, 2024, respectively.


	June 30, 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	$	778	$	775	$	961	$	955
Due after one year through five years	4,701		4,695		4,616		4,544
Due after five years through ten years	5,417		5,359		5,311		5,126
Due after ten years	17,139		14,522		16,761		13,959
Subtotal	28,035		25,351		27,649		24,584
Other securities, which provide for periodic payments:
Asset-backed securities	18,471		18,345		15,784		15,656
Commercial mortgage-backed securities	5,537		5,390		5,379		5,182

Residential mortgage-backed securities	2,985		2,961		2,869		2,796
Subtotal	26,993		26,696		24,032		23,634
Total fixed maturity available-for-sale securities	$	55,028	$	52,047	$	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 June 30, 2025 and December 31, 2024, our allowance for expected credit losses for AFS securities was $103 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 June 30, 2025 and December 31, 2024 were as follows:


	June 30, 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	$	2,676	$	(23)	$	2,488	$	(254)	$	5,164	$	(277)
Commercial mortgage-backed securities	441		(12)		1,269		(130)		1,710		(142)
Corporates	4,286		(124)		9,507		(2,448)		13,793		(2,572)
Hybrids	75		(4)		351		(21)		426		(25)
Municipals	243		(13)		976		(225)		1,219		(238)
Residential mortgage-backed securities	316		(2)		417		(72)		733		(74)
U.S. Government	83		(1)		93		(3)		176		(4)
Foreign Government	60		(1)		164		(43)		224		(44)
Total available-for-sale securities	$	8,180	$	(180)	$	15,265	$	(3,196)	$	23,445	$	(3,376)
Total number of available-for-sale securities in an unrealized loss position less than twelve months											1,582
Total number of available-for-sale securities in an unrealized loss position twelve months or longer											2,141
Total number of available-for-sale securities in an unrealized loss position											3,723


	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 June 30, 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. We believe the unrealized loss position for which we have not recorded an allowance for expected credit loss as of June 30, 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 5% of our total investments reported on the unaudited Condensed Consolidated Balance Sheets for both June 30, 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:


	June 30, 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		21		657		24
Mixed Use	71		2		11		—
Multifamily	1,111		36		1,006		37
Office	348		11		349		13
Retail	183		6		98		4
Student Housing	83		3		83		3
Other	615		20		501		18
Total CMLs, gross of valuation allowance	$	3,085	100	%	$	2,722	100	%
Allowance for expected credit loss	(17)				(17)
Total CMLs, net of valuation allowance	$	3,068			$	2,705

U.S. Region:
East North Central	$	99	3	%	$	98	4	%
East South Central	75		2		75		3
Middle Atlantic	348		11		354		13
Mountain	408		13		409		15
New England	174		6		164		6
Pacific	726		24		706		26
South Atlantic	1,008		33		683		25
West North Central	63		2		62		2
West South Central	184		6		171		6

Total CMLs, gross of valuation allowance	$	3,085	100	%	$	2,722	100	%
Allowance for expected credit loss	(17)				(17)
Total CMLs, net of valuation allowance	$	3,068			$	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 six month period ended June 30, 2025 and for the year ended December 31, 2024. CMLs segregated by aging of the loans (by year of origination) as of June 30, 2025 and December 31, 2024, were as follows, gross of valuation allowances:


	June 30, 2025

	Amortized Cost by Origination Year
	2025		2024		2023		2022		2021		Prior		Total
CMLs	(In millions)
Current (less than 30 days past due)	$	355	$	300	$	234	$	291	$	1,253	$	643	$	3,076
30-89 days past due	—		—		—		—		—		—		—
90 days or more past due	—		—		—		—		—		9		9
Total CMLs	$	355	$	300	$	234	$	291	$	1253	$	652	$	3,085


	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
June 30, 2025	(In millions)
LTV Ratios:
Less than 50.00%	$	561	$	43	$	—		$	604	20	%	$	586	21	%
50.00% to 59.99%	916		130		12			1,058		34		977		34
60.00% to 74.99%	1,381		25		—			1,406		45		1,247		44
75.00% to 84.99%	4		4		9			17		1		17		1
CMLs	$	2,862	$	202	$	21		$	3,085	100	%	$	2,827	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	%


	June 30, 2025

	Amortized Cost by Origination Year
	2025		2024		2023		2022		2021		Prior		Total
CMLs	(In millions)
LTV Ratios:
Less than 50.00%	$	51	$	75	$	106	$	20	$	75	$	277	$	604
50.00% to 59.99%	152		130		53		149		321		253		1,058
60.00% to 74.99%	152		91		71		113		857		122		1,406
75.00% to 84.99%	—		4		4		9		—		—		17
Total CMLs	$	355	$	300	$	234	$	291	$	1253	$	652	$	3,085
CMLs
DSC Ratios
Greater than 1.25x	$	345	$	140	$	222	$	279	$	1,241	$	635	$	2,862
1.00x - 1.25x	10		160		12		3		—		17		202
Less than 1.00x	—		—		—		9		12		—		21
Total CMLs	$	355	$	300	$	234	$	291	$	1253	$	652	$	3,085


	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
DSC Ratios
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 June 30, 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:


	June 30, 2025
	Amortized Cost		% of Total
U.S. States:	(In millions)
Florida	$	194	5	%
New York	178		5
California	177		5
All other states (a)	3,381		85
Total RMLs, gross of valuation allowance	3,930		100	%
Allowance for expected credit loss	(58)
Total RMLs, net of valuation allowance	$	3,872


	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 June 30, 2025 and December 31, 2024, was as follows:


	June 30, 2025				December 31, 2024
	Amortized Cost		% of Total		Amortized Cost		% of Total
Performance indicators:	(In millions)				(In millions)
Performing	$	3,863	98	%	$	3,188	97	%
Non-performing	67		2		86		3
Total RMLs, gross of valuation allowance	3,930		100	%	3,274		100	%
Allowance for expected loan loss	(58)				(53)
Total RMLs, net of valuation allowance	$	3,872			$	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 six months ended June 30, 2025 or during the year ended December 31, 2024. RMLs segregated by aging of the loans (by year of origination) as of June 30, 2025 and December 31, 2024, were as follows, gross of valuation allowances:


	June 30, 2025

	Amortized Cost by Origination Year
	2025		2024		2023		2022		2021		Prior		Total
RMLs	(In millions)
Current (less than 30 days past due)	$	619	$	765	$	370	$	866	$	773	$	437	$	3,830
30-89 days past due	1		5		2		6		5		14		33
90 days or more past due	—		3		2		12		20		30		67
Total RMLs	$	620	$	773	$	374	$	884	$	798	$	481	$	3,930


	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 June 30, 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 June 30, 2025 and December 31, 2024, we had $76 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.


	Three months ended June 30, 2025			Six months ended June 30, 2025
		(In millions)						(In millions)

		Residential Mortgage		Commercial Mortgage		Total		Residential Mortgage		Commercial Mortgage		Total
Beginning Balance		$	(56)	$	(17)	$	(73)	$	(53)	$	(17)	$	(70)
Provision expense for loan losses		(2)		—		(2)		(5)		—		(5)




Ending Balance		$	(58)	$	(17)	$	(75)	$	(58)	$	(17)	$	(75)


	Three months ended June 30, 2024						Six months ended June 30, 2024
	(In millions)						(In millions)

	Residential Mortgage		Commercial Mortgage		Total		Residential Mortgage		Commercial Mortgage		Total
Beginning Balance	$	(54)	$	(13)	$	(67)	$	(54)	$	(12)	$	(66)
Provision benefit (expense) for loan losses	4		(1)		3		4		(2)		2




Ending Balance	$	(50)	$	(14)	$	(64)	$	(50)	$	(14)	$	(64)

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 six months ended June 30, 2025 and 2024.

As of June 30, 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 $34 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 June 30,				Six months ended June 30,
	2025		2024		2025		2024
	(In millions)				(In millions)
Fixed maturity securities, available-for-sale	$	572	$	561	$	1,141	$	1,096
Equity securities	7		8		15		18
Preferred securities	7		10		13		18
Mortgage loans	87		65		169		131

Invested cash and short-term investments	48		53		101		100

Limited partnerships	60		98		115		151
Tax deferred property exchange income	29		34		58		66
Other investments	33		26		56		56
Gross investment income	843		855		1,668		1,636
Investment expense	(66)		(72)		(131)		(143)
Interest and investment income	$	777	$	783	$	1,537	$	1,493

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 $189 million and $155 million for the three months ended June 30, 2025 and 2024, respectively, and $373 million and $282 million for the six months ended June 30, 2025 and 2024, respectively.


	Three months ended June 30,				Six months ended June 30,
	2025		2024		2025		2024
	(In millions)				(In millions)
Net realized gains (losses) on fixed maturity available-for-sale securities	$	—	$	23	$	(1)	$	5
Net realized/unrealized (losses) gains on equity securities (1)	(36)		(62)		(73)		(10)
Net realized/unrealized (losses) gains on preferred securities (2)	(1)		(4)		(3)		11
Net realized/unrealized gains on other invested assets	73		13		73		71
Change in allowance for expected credit losses	(21)		(31)		(44)		(31)
Derivatives and embedded derivatives:
Realized (losses) gains on certain derivative instruments	(52)		14		(77)		35
Unrealized gains (losses) on certain derivative instruments	192		(55)		34		103
Change in fair value of reinsurance related embedded derivatives (3)	(61)		10		(102)		(8)
Change in fair value of other derivatives and embedded derivatives	4		4		4		11
Net realized/unrealized gains (losses) on derivatives and embedded derivatives	83		(27)		(141)		141
Recognized gains and losses, net	$	98	$	(88)	$	(189)	$	187

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 $(57) million and $(99) million for the three and six months ended June 30, 2025, respectively, and $10 million and $(9) million for the three and six months ended June 30, 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

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).


	June 30, 2025				December 31, 2024
	(In millions)				(In millions)
	Carrying Value		Maximum Loss Exposure		Carrying Value		Maximum Loss Exposure
Investment in unconsolidated affiliates	$	4,445	$	5,688	$	3,565	$	4,703
Fixed maturity securities	26,316		27,225		23,242		24,242
Total unconsolidated VIE investments	$	30,761	$	32,913	$	26,807	$	28,945