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INVESTMENTS
 9 Months Ended
Sep. 30, 2025
Investments, Debt and Equity Securities [Abstract]  
INVESTMENTS INVESTMENTS
Fixed Maturities AFS
The components of fair value and amortized cost for fixed maturities classified as AFS on the consolidated balance sheets excludes accrued interest receivable because the Company elected to present accrued interest receivable within other assets. Accrued interest receivable on AFS fixed maturities as of September 30, 2025 and December 31, 2024 was $647 million and $693 million, respectively. There was no accrued interest written off for AFS fixed maturities for the three and nine months ended September 30, 2025 and 2024.
The following tables provide information relating to the Company’s fixed maturities classified as AFS:
AFS Fixed Maturities by Classification
 
Amortized CostAllowance for Credit Losses Gross Unrealized GainsGross Unrealized LossesFair Value
 
 (in millions)
September 30, 2025
Fixed Maturities:
Corporate (1)$47,594 $— $664 $3,994 $44,264 
U.S. Treasury, government and agency
5,042 — 2 1,264 3,780 
States and political subdivisions379 — 2 70 311 
Foreign governments
595 — 3 80 518 
Residential mortgage-backed (2)6,589 — 75 98 6,566 
Asset-backed (3)15,675 — 138 41 15,772 
Commercial mortgage-backed4,825 — 26 269 4,582 
Redeemable preferred stock54 — 4 — 58 
Total at September 30, 2025$80,753 $— $914 $5,816 $75,851 
December 31, 2024:
Fixed Maturities:
Corporate (1) (4)
$55,163 $2 $249 $6,112 $49,298 
U.S. Treasury, government and agency
5,801 — — 1,513 4,288 
States and political subdivisions
472 — 2 88 386 
Foreign governments
689 — 1 136 554 
Residential mortgage-backed (2)4,520 — 15 152 4,383 
Asset-backed (3) (4)
13,715 — 98 61 13,752 
Commercial mortgage-backed4,301 — 5 385 3,921 
Redeemable preferred stock 56 — 3 — 59 
Total at December 31, 2024$84,717 $2 $373 $8,447 $76,641 
______________
(1)Corporate fixed maturities include both public and private issues.
(2)Includes publicly traded agency pass-through securities and collateralized obligations.
(3)Includes credit-tranched securities collateralized by sub-prime mortgages, credit risk transfer securities and other asset types.
(4)Prior period amounts have been revised to improve comparability.
The contractual maturities of AFS fixed maturities as of September 30, 2025 are shown in the table below. Bonds not due at a single maturity date have been included in the table in the final year of maturity. Actual maturities may differ from contractual maturities because borrowers may have the right to call or pre-pay obligations with or without call or pre-payment penalties.
Contractual Maturities of AFS Fixed Maturities
 Amortized Cost (Less Allowance for Credit Losses)Fair Value
 (in millions)
September 30, 2025
Contractual maturities:
Due in one year or less$2,374 $2,361 
Due in years two through five14,643 14,508 
Due in years six through ten17,039 16,862 
Due after ten years19,554 15,142 
Subtotal53,610 48,873 
Residential mortgage-backed6,589 6,566 
Asset-backed15,675 15,772 
Commercial mortgage-backed4,825 4,582 
Redeemable preferred stock 54 58 
Total at September 30, 2025$80,753 $75,851 
The following table shows proceeds from sales, gross gains (losses) from sales and allowance for credit losses for AFS fixed maturities:
Proceeds from Sales, Gross Gains (Losses) from Sales and Allowance for Credit and Intent to Sell Losses for AFS Fixed Maturities

 
Three Months Ended September 30,Nine Months Ended September 30,
 
2025202420252024
 
(in millions)
Proceeds from sales$1,953 $461 $6,216 $2,236 
Gross gains on sales$10 $2 $19 $7 
Gross losses on sales$(17)$(27)$(50)$(54)
Net (increase) decrease in Allowance for Credit and Intent to Sell losses $(7)$(2)$(26)$(7)

The following table sets forth the amount of credit loss impairments on AFS fixed maturities held by the Company at the dates indicated and the corresponding changes in such amounts:
AFS Fixed Maturities - Credit and Intent to Sell Loss Impairments
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
(in millions)
Balance, beginning of period$61 $50 $47 $48 
Previously recognized impairments on securities that matured, paid, prepaid or sold(18)3 (23)(5)
Recognized impairments on securities impaired to fair value this period (1)
22 — 22 — 
Credit losses recognized this period on securities for which credit losses were not previously recognized(12)(1)5 5 
Additional credit losses this period on securities previously impaired— (2)2 2 
Balance, end of period$53 $50 $53 $50 
______________
(1)Represents circumstances where the Company determined in the current period that it intends to sell the security, or it is more likely than not that it will be required to sell the security before recovery of the security’s amortized cost.
The tables below present a roll-forward of net unrealized investment gains (losses) recognized in AOCI:

Net Unrealized Gains (Losses) on AFS Fixed Maturities

Three Months Ended September 30, 2025
Net Unrealized Gains (Losses) on InvestmentsPolicyholders’ Liabilities
Deferred Income Tax Asset (Liability)
AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses)
(in millions)
Balance, beginning of period$(6,722)$66 $140 $(6,516)
Net investment gains (losses) arising during the period685 — — 685 
Reclassification adjustment:
Included in net income (loss)1,136 — — 1,136 
Excluded from net income (loss)— — — — 
Other— — 231 231 
Impact of net unrealized investment gains (losses)— (41)(373)(414)
Net unrealized investment gains (losses) excluding credit losses(4,901)25 (2)(4,878)
Net unrealized investment gains (losses) with credit losses(1)— — (1)
Balance, end of period$(4,902)$25 $(2)$(4,879)
Three Months Ended September 30, 2024
Balance, beginning of period$(8,214)$67 $471 $(7,676)
Net investment gains (losses) arising during the period2,759 — — 2,759 
Reclassification adjustment:
Included in net income (loss)28 — — 28 
Excluded from net income (loss)— — — — 
Other
— — 120 120 
Impact of net unrealized investment gains (losses)— (17)(582)(599)
Net unrealized investment gains (losses) excluding credit losses(5,427)50 9 (5,368)
Net unrealized investment gains (losses) with credit losses(5)— 1 (4)
Balance, end of period$(5,432)$50 $10 $(5,372)

Nine Months Ended September 30, 2025
Net Unrealized Gains (Losses) on InvestmentsPolicyholders’ Liabilities
Deferred Income Tax Asset (Liability)
AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses)
(in millions)
Balance, beginning of period$(8,074)$71 $464 $(7,539)
Net investment gains (losses) arising during the period1,995 — — 1,995 
Reclassification adjustment:
Included in net income (loss)1,180 — — 1,180 
Excluded from net income (loss)— — — — 
Other— — 190 190 
Impact of net unrealized investment gains (losses)— (46)(657)(703)
Net unrealized investment gains (losses) excluding credit losses(4,899)25 (3)(4,877)
Net unrealized investment gains (losses) with credit losses(3)— 1 (2)
Balance, end of period$(4,902)$25 $(2)$(4,879)
Nine Months Ended September 30, 2024
Balance, beginning of period$(6,999)$50 $226 $(6,723)
Net investment gains (losses) arising during the period1,521 — — 1,521 
Reclassification adjustment:
Included in net income (loss)54 — — 54 
Other
— — 113 113 
Impact of net unrealized investment gains (losses)— — (331)(331)
Net unrealized investment gains (losses) excluding credit losses(5,424)50 8 (5,366)
Net unrealized investment gains (losses) with credit losses(8)— 2 (6)
Balance, end of period$(5,432)$50 $10 $(5,372)

The following tables disclose the fair values and gross unrealized losses of the 3,342 issues as of September 30, 2025 and the 4,307 issues as of December 31, 2024 that are not deemed to have credit losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position for the specified periods at the dates indicated:
AFS Fixed Maturities in an Unrealized Loss Position for Which No Allowance Is Recorded

Less Than 12 Months12 Months or LongerTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
(in millions)
September 30, 2025
Fixed Maturities:
Corporate$2,943 $34 $22,092 $3,944 $25,035 $3,978 
U.S. Treasury, government and agency11 — 3,658 1,264 3,669 1,264 
States and political subdivisions13 — 224 70 237 70 
Foreign governments8 — 400 80 408 80 
Residential mortgage-backed853 1 884 97 1,737 98 
Asset-backed1,284 8 629 33 1,913 41 
Commercial mortgage-backed239 2 2,814 267 3,053 269 
Total at September 30, 2025$5,351 $45 $30,701 $5,755 $36,052 $5,800 
December 31, 2024:
Fixed Maturities:
Corporate (1)
$9,139 $204 $28,632 $5,898 $37,771 $6,102 
U.S. Treasury, government and agency117 4 4,107 1,509 4,224 1,513 
States and political subdivisions40 — 271 88 311 88 
Foreign governments59 1 460 135 519 136 
Residential mortgage-backed1,986 26 851 126 2,837 152 
Asset-backed (1)
982 8 744 53 1,726 61 
Commercial mortgage-backed409 6 2,893 379 3,302 385 
Total at December 31, 2024$12,732 $249 $37,958 $8,188 $50,690 $8,437 
(1)Prior period amounts have been revised to improve comparability

The Company maintains a diversified portfolio of AFS securities across industries and issuers and does not have exposure to any single issuer in excess of 0.5% of total fixed maturities. The largest exposure to a single issuer held as of September 30, 2025 and December 31, 2024 was $402 million and $400 million, respectively, representing 25.1% and 11.7% of the consolidated equity of the Company.
Corporate high yield securities, consisting primarily of public high yield bonds, are classified as other than investment grade by the various rating agencies, i.e., a rating below Baa3/BBB- or the NAIC Designation (as defined below) of 3 (medium investment grade), 4 or 5 (below investment grade) or 6 (in or near default). As of September 30, 2025 and December 31, 2024, respectively, approximately $1.8 billion and $1.9 billion, or 2.3% and 2.3%, of the $80.8 billion and $84.7 billion aggregate amortized cost of fixed maturities held by the Company were considered to be other than investment grade. These securities had gross unrealized losses of $63 million and $64 million as of September 30, 2025 and December 31, 2024, respectively.
As of September 30, 2025 and December 31, 2024, respectively, the $5.8 billion and $8.2 billion of gross unrealized losses of twelve months or more were primarily concentrated in corporate securities. In accordance with the policy described in Note 2 of the Notes to these Consolidated Financial Statements, the Company concluded that an adjustment to the allowance for credit losses for these securities was not warranted at either September 30, 2025 or December 31, 2024. As of September 30, 2025 and December 31, 2024, the Company neither intended to sell the securities nor was it more likely than not required to dispose of the securities before the anticipated recovery of their remaining amortized cost basis.
Based on the Company’s evaluation both qualitatively and quantitatively of the drivers of the decline in fair value of fixed maturity securities as of September 30, 2025, the Company determined that the unrealized loss was primarily due to increases in interest rates and credit spreads.
Securities Lending
The Company enters into securities lending agreements with an agent bank whereby blocks of securities are loaned to third parties, primarily major brokerage firms. As of September 30, 2025 and December 31, 2024, the estimated fair value of loaned securities was $1.1 billion and $134 million. The agreements require a minimum of 102% of the fair value of the loaned securities to be held as cash or security collateral, calculated daily. We do not have the right to sell or pledge the securities posted as collateral. To further minimize the credit risks related to these programs, the financial condition of counterparties is monitored on a regular basis. As of September 30, 2025 and December 31, 2024, collateral received was in the amount of $1.1 billion and $137 million, of which $77 million and $137 million, respectively, is cash collateral. A securities lending payable for the overnight and continuous loans is included in other liabilities in the amount of cash collateral received. Securities lending transactions are used to generate income. Income and expenses associated with these transactions are reported as Net investment income and were not material for the nine months ended September 30, 2025 and 2024.
Mortgage Loans on Real Estate
Accrued interest receivable on commercial, agricultural and residential mortgage loans as of September 30, 2025 and December 31, 2024 was $118 million and $96 million, respectively. There was no accrued interest written off for commercial, agricultural and residential mortgage loans for the nine months ended September 30, 2025 and 2024.
There were no mortgage loans foreclosed during the nine months ended September 30, 2025.
Allowance for Credit Losses on Mortgage Loans
The change in the allowance for credit losses for commercial, agricultural and residential mortgage loans were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
(in millions)
Allowance for credit losses on mortgage loans:
Commercial mortgages:
Balance, beginning of period$293 $222 $259 $272 
Current-period provision for expected credit losses(19)22 15 47 
Write-offs charged against the allowance— — — (75)
Recoveries of amounts previously written off— — — — 
Net change in allowance(19)22 15 (28)
Balance, end of period$274 $244 $274 $244 
Agricultural mortgages:
Balance, beginning of period$5 $9 $15 $6 
Current-period provision for expected credit losses1 4 (1)7 
Write-offs charged against the allowance— — (8)— 
Recoveries of amounts previously written off— — — — 
Net change in allowance1 4 (9)7 
Balance, end of period$6 $13 $6 $13 
Residential mortgages:
Balance, beginning of period$7 $3 $4 $1 
Current-period provision for expected credit losses— 1 3 3 
Write-offs charged against the allowance— — — — 
Recoveries of amounts previously written off— — — — 
Net change in allowance— 1 3 3 
Balance, end of period$7 $4 $7 $4 
Total allowance for credit losses$287 $261 $287 $261 

The change in the allowance for credit losses is attributable to:
•increases/decreases in the loan balance due to new originations, maturing mortgages, and loan amortization; and
•changes in credit quality and economic assumptions.
Credit Quality Information
The Company’s commercial and agricultural mortgage loans segregated by risk rating exposure were as follows:
Loan to Value (“LTV”) Ratios (1) (3)
September 30, 2025
Amortized Cost Basis by Origination Year
20252024202320222021PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost BasisTotal
(in millions)
Commercial and agricultural mortgage loans:
Commercial:
0% - 50%$60 $185 $258 $137 $206 $1,750 $— $— $2,596 
50% - 70%1,858 1,431 1,051 1,568 612 2,176 463 277 9,436 
70% - 90%293 73 80 721 695 1,736 160 204 3,962 
90% plus— — — 587 560 994 — — 2,141 
Total commercial$2,211 $1,689 $1,389 $3,013 $2,073 $6,656 $623 $481 $18,135 
Agricultural:
0% - 50%$129 $46 $99 $146 $208 $1,095 $— $— $1,723 
50% - 70%101 155 52 134 116 353 — — 911 
70% - 90%— — — — — — — — — 
90% plus— — — — — 9 — — 9 
Total agricultural$230 $201 $151 $280 $324 $1,457 $— $— $2,643 
Total commercial and agricultural mortgage loans:
0% - 50%$189 $231 $357 $283 $414 $2,845 $— $— $4,319 
50% - 70%1,959 1,586 1,103 1,702 728 2,529 463 277 10,347 
70% - 90%293 73 80 721 695 1,736 160 204 3,962 
90% plus— — — 587 560 1,003 — — 2,150 
Total commercial and agricultural mortgage loans
$2,441 $1,890 $1,540 $3,293 $2,397 $8,113 $623 $481 $20,778 
Debt Service Coverage (“DSC”) Ratios (2) (3)
September 30, 2025
Amortized Cost Basis by Origination Year
20252024202320222021PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost BasisTotal
(in millions)
Commercial and agricultural mortgage loans:
Commercial:
Greater than 2.0x$67 $207 $175 $999 $1,081 $3,032 $— $— $5,561 
1.8x to 2.0x— 103 58 — 208 1,106 123 184 1,782 
1.5x to 1.8x369 472 316 754 48 1,143 63 164 3,329 
1.2x to 1.5x1,194 791 401 555 528 468 — 95 4,032 
1.0x to 1.2x581 116 429 486 76 827 437 38 2,990 
Less than 1.0x— — 10 219 132 80 — — 441 
Total commercial$2,211 $1,689 $1,389 $3,013 $2,073 $6,656 $623 $481 $18,135 
Agricultural:
Greater than 2.0x$24 $9 $5 $37 $32 $190 $— $— $297 
1.8x to 2.0x26 10 17 23 53 94 — — 223 
1.5x to 1.8x35 47 11 38 27 278 — — 436 
1.2x to 1.5x75 45 44 78 134 490 — — 866 
1.0x to 1.2x50 71 43 80 68 365 — — 677 
Less than 1.0x20 19 31 24 10 40 — — 144 
Total agricultural$230 $201 $151 $280 $324 $1,457 $— $— $2,643 
Total commercial and agricultural mortgage loans:
Greater than 2.0x$91 $216 $180 $1,036 $1,113 $3,222 $— $— $5,858 
1.8x to 2.0x26 113 75 23 261 1,200 123 184 2,005 
1.5x to 1.8x404 519 327 792 75 1,421 63 164 3,765 
1.2x to 1.5x1,269 836 445 633 662 958 — 95 4,898 
1.0x to 1.2x631 187 472 566 144 1,192 437 38 3,667 
Less than 1.0x20 19 41 243 142 120 — — 585 
Total commercial and agricultural mortgage loans
$2,441 $1,890 $1,540 $3,293 $2,397 $8,113 $623 $481 $20,778 
______________
(1)The LTV ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan.
(2)The DSC ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service.
(3)Residential mortgage loans are excluded from the above tables.
LTV Ratios (1) (3)
December 31, 2024
Amortized Cost Basis by Origination Year
20242023202220212020PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost BasisTotal
(in millions)
Commercial and agricultural mortgage loans:
Commercial:
0% - 50%$185 $363 $137 $212 $269 $1,548 $— $— $2,714 
50% - 70%1,501 910 1,622 628 318 2,083 441 201 7,704 
70% - 90%— 246 707 918 396 1,187 101 206 3,761 
90% plus— — 616 322 309 1,290 — — 2,537 
Total commercial$1,686 $1,519 $3,082 $2,080 $1,292 $6,108 $542 $407 $16,716 
Agricultural:
0% - 50%$49 $98 $160 $202 $269 $882 $— $— $1,660 
50% - 70%160 59 126 130 144 273 — — 892 
70% - 90%— — — — — 16 — — 16 
90% plus— — — — — — — — — 
Total agricultural$209 $157 $286 $332 $413 $1,171 $— $— $2,568 
Total commercial and agricultural mortgage loans:
0% - 50%$234 $461 $297 $414 $538 $2,430 $— $— $4,374 
50% - 70%1,661 969 1,748 758 462 2,356 441 201 8,596 
70% - 90%— 246 707 918 396 1,203 101 206 3,777 
90% plus— — 616 322 309 1,290 — — 2,537 
Total commercial and agricultural mortgage loans
$1,895 $1,676 $3,368 $2,412 $1,705 $7,279 $542 $407 $19,284 

DSC Ratios (2) (3)
December 31, 2024
Amortized Cost Basis by Origination Year
20242023202220212020PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost BasisTotal
(in millions)
Commercial and agricultural mortgage loans:
Commercial:
Greater than 2.0x$208 $176 $609 $1,255 $916 $3,318 $— $— $6,482 
1.8x to 2.0x103 75 50 149 376 607 176 182 1,718 
1.5x to 1.8x472 211 727 — — 1,060 44 189 2,703 
1.2x to 1.5x756 566 542 433 — 661 — — 2,958 
December 31, 2024
Amortized Cost Basis by Origination Year
20242023202220212020PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost BasisTotal
(in millions)
1.0x to 1.2x147 482 643 193 — 359 322 36 2,182 
Less than 1.0x— 9 511 50 — 103 — — 673 
Total commercial$1,686 $1,519 $3,082 $2,080 $1,292 $6,108 $542 $407 $16,716 
Agricultural:
Greater than 2.0x$12 $5 $41 $34 $57 $157 $— $— $306 
1.8x to 2.0x11 17 24 54 28 79 — — 213 
1.5x to 1.8x49 11 44 27 120 175 — — 426 
1.2x to 1.5x47 46 89 138 113 422 — — 855 
1.0x to 1.2x71 47 63 68 87 307 — — 643 
Less than 1.0x19 31 25 11 8 31 — — 125 
Total agricultural$209 $157 $286 $332 $413 $1,171 $— $— $2,568 
Total commercial and agricultural mortgage loans:
Greater than 2.0x$220 $181 $650 $1,289 $973 $3,475 $— $— $6,788 
1.8x to 2.0x114 92 74 203 404 686 176 182 1,931 
1.5x to 1.8x521 222 771 27 120 1,235 44 189 3,129 
1.2x to 1.5x803 612 631 571 113 1,083 — — 3,813 
1.0x to 1.2x218 529 706 261 87 666 322 36 2,825 
Less than 1.0x19 40 536 61 8 134 — — 798 
Total commercial and agricultural mortgage loans
$1,895 $1,676 $3,368 $2,412 $1,705 $7,279 $542 $407 $19,284 
______________
(1)The LTV ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan.
(2)The DSC ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service.
(3)Residential mortgage loans are excluded from the above tables.
The amortized cost of residential mortgage loans by credit quality indicator and origination year was as follows:
September 30, 2025
Amortized Cost Basis by Origination Year
20252024202320222021PriorTotal
(in millions)
Performance indicators:
Performing
$321 $669 $370 $172 $123 $4 $1,659 
Nonperforming
— — — — — — — 
Total
$321 $669 $370 $172 $123 $4 $1,659 
December 31, 2024
Amortized Cost Basis by Origination Year
20242023202220212019PriorTotal
(in millions)
Performance indicators:
Performing
$313 $428 $186 $133 $4 $2 $1,066 
Nonperforming
— — — — — — — 
Total
$313 $428 $186 $133 $4 $2 $1,066 

Past-Due and Nonaccrual Mortgage Loan Status
The aging analysis of past-due mortgage loans were as follows:
Age Analysis of Past Due Mortgage Loans (1)
Accruing LoansNon-accruing LoansTotal LoansNon-accruing Loans with No AllowanceInterest Income on Non-accruing Loans
Past DueCurrentTotal
30-59 Days60-89 Days90 Days or MoreTotal
(in millions)
September 30, 2025:
Mortgage loans:
Commercial$— $— $— $— $18,076 $18,076 $59 $18,135 $— $— 
Agricultural8 5 49 62 2,570 2,632 11 2,643 9 — 
Residential
2 1 — 3 1,656 1,659 — 1,659 — — 
Total$10 $6 $49 $65 $22,302 $22,367 $70 $22,437 $9 $— 
December 31, 2024:
Mortgage loans:
Commercial$— $— $— $— $16,659 $16,659 $57 $16,716 $— $1 
Agricultural12 1 33 46 2,486 2,532 36 2,568 — — 
Residential
— 1 — 1 1,065 1,066 — 1,066 — — 
Total$12 $2 $33 $47 $20,210 $20,257 $93 $20,350 $— $1 
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(1)Amounts presented at amortized cost basis.
As of September 30, 2025 and December 31, 2024, the amortized cost of problem mortgage loans that had been classified as non-accrual loans were $11 million and $36 million, respectively.
Loan Modifications
During the three and nine months ended September 30, 2025, the Company granted a modification to a commercial mortgage. This modification involved waiving a $10 million paydown requirement and extending the maturity date until June 10, 2027. Additionally, the loan will continue to accrue interest but will have a reduced pay rate, with the difference due and payable at maturity. The loan has an amortized cost of $35 million and represents 0.2% of total commercial mortgage loans.
During the nine months ended September 30, 2025, the Company also granted a modification splitting an agricultural mortgage loan into three notes. The loans have an amortized cost of $9 million, which is fully attributed to the first note, and represent 0.3% of total agricultural loans.
During 2024, the Company granted a modification splitting a commercial mortgage loan into two notes. One note retaining the original loan terms and the second note with an increased interest rate to market terms and required management of excess cash. The loans have an amortized cost of $65 million and represents 0.4% of total commercial mortgage loans.
During 2023, the Company granted a modification of interest rates on four commercial mortgage loans, but not to market terms and required management of excess cash. The loans have an amortized cost of $169 million which represents 0.9% of total commercial mortgage loans. Two of the four loans also have term extensions of 17 months to 4 years. During the three months ended September 30, 2025, the Company disposed of one of the modified loans of $61 million.
The impact to Investment income or gains (losses) as a result of these modifications was not material to the consolidated financial statements.
The above modifications are performing in accordance with their restructured terms.
Equity Securities
The breakdown of unrealized and realized gains and (losses) on equity securities was as follows:
Unrealized and Realized Gains (Losses) from Equity Securities
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
(in millions)
Net investment gains (losses) recognized during the period on securities held at the end of the period$40 $30 $38 $39 
Net investment gains (losses) recognized on securities sold during the period(24)(1)(22)1 
Unrealized and realized gains (losses) on equity securities $16 $29 $16 $40 
Trading Securities
As of September 30, 2025 and December 31, 2024, respectively, the fair value of the Company’s trading securities was $1.6 billion and $1.1 billion. As of September 30, 2025 and December 31, 2024, respectively, trading securities included the General Account’s investment in Separate Accounts had carrying values of $63 million and $64 million.
The breakdown of net investment income (loss) from trading securities was as follows:
Net Investment Income (Loss) from Trading Securities
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
(in millions)
Net investment gains (losses) recognized during the period on securities held at the end of the period$49 $70 $82 $112 
Net investment gains (losses) recognized on securities sold during the period1 1 7 2 
Unrealized and realized gains (losses) on trading securities50 71 89 114 
Interest and dividend income from trading securities18 23 52 55 
Net investment income (loss) from trading securities$68 $94 $141 $169 
Fixed maturities, at fair value using the fair value option
The breakdown of net investment income (loss) from fixed maturities, at fair value using the fair value option were as follows:
Net Investment Income (Loss) from Fixed Maturities, at Fair Value using the Fair Value Option
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
(in millions)
Net investment gains (losses) recognized during the period on securities held at the end of the period$3 $(10)$15 $(15)
Net investment gains (losses) recognized on securities sold during the period1 — 2 3 
Unrealized and realized gains (losses) from fixed maturities4 (10)17 (12)
Interest and dividend income from fixed maturities8 8 4 36 
Net investment income (loss) from fixed maturities$12 $(2)$21 $24 
Net Investment Income
The following tables provides the components of Net investment income by investment type:
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
(in millions)
Fixed maturities$922 $896 $2,796 $2,551 
Mortgage loans on real estate270 245 786 718 
Other equity investments64 68 147 120 
Policy loans35 57 142 167 
Trading securities68 94 141 169 
Other investment income16 (15)33 30 
Fixed maturities, at fair value using the fair value option12 (2)21 24 
Gross investment income (loss)1,387 1,343 4,066 3,779 
Investment expenses(44)(35)(120)(94)
Net investment income (loss)$1,343 $1,308 $3,946 $3,685 
Investment Gains (Losses), Net
Investment gains (losses), net, including changes in the valuation allowances and credit losses were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2025 (1)20242025 (1)2024
(in millions)
Fixed maturities$(1,161)$(27)$(1,180)$(54)
Mortgage loans on real estate(9)(26)(77)(58)
Other— 7 2 11 
Investment gains (losses), net$(1,170)$(46)$(1,255)$(101)
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(1)Includes $1.1 billion as a result of the assets transferred related to the reinsurance transaction with RGA. See Note 20 of the Notes to these Consolidated Financial Statements for further details.
For the three and nine months ended September 30, 2025 and 2024, respectively, investment results passed through to certain participating group annuity contracts as interest credited to policyholders’ account balances totaled $0 million, $1 million, $0 million and $1 million.