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INVESTMENTS | 9 Months Ended
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Sep. 30, 2025
Investments, Debt and Equity Securities [Abstract] |
INVESTMENTS | INVESTMENTS The tables below present the amortized cost, allowance for credit losses, gross unrealized appreciation/(depreciation) (“URA(D)”) and fair value of fixed maturity securities - available for sale for the periods indicated:
| At September 30, 2025
(Dollars in millions) | Amortized Cost |  | Allowance for Credit Losses |  | Unrealized Appreciation |  | Unrealized Depreciation |  | Fair Value
Fixed maturity securities - available for sale |  |  |  |  |  |  |  |  |
U.S. Treasury securities and obligations of |  |  |  |  |  |  |  |  |
U.S. government agencies and corporations | $ | 770 |  |  | $ | — |  |  | $ | 4 |  |  | $ | (22) |  |  | 752 |
Obligations of U.S. states and political subdivisions | 55 |  |  | — |  |  | — |  |  | (6) |  |  | 49 |
Corporate securities | 9,734 |  |  | (38) |  |  | 199 |  |  | (189) |  |  | 9,705 |
Asset-backed securities | 5,049 |  |  | (14) |  |  | 23 |  |  | (15) |  |  | 5,044 |
Mortgage-backed securities |  |  |  |  |  |  |  |  |
Agency commercial | 402 |  |  | — |  |  | 9 |  |  | (1) |  |  | 409 |
Non-agency commercial | 907 |  |  | — |  |  | 4 |  |  | (39) |  |  | 872 |
Agency residential | 5,594 |  |  | — |  |  | 68 |  |  | (178) |  |  | 5,484 |
Non-agency residential | 1,562 |  |  | — |  |  | 35 |  |  | (1) |  |  | 1,595 |
Foreign government securities | 2,534 |  |  | — |  |  | 35 |  |  | (100) |  |  | 2,470 |
Foreign corporate securities | 7,443 |  |  | — |  |  | 245 |  |  | (157) |  |  | 7,531 |
Total fixed maturity securities - available for sale | $ | 34,049 |  |  | $ | (51) |  |  | $ | 621 |  |  | $ | (708) |  |  | $ | 33,912 |
(Some amounts may not reconcile due to rounding.)
| At December 31, 2024
(Dollars in millions) | Amortized Cost |  | Allowance for Credit Losses |  | Unrealized Appreciation |  | Unrealized Depreciation |  | Fair Value
Fixed maturity securities - available for sale |  |  |  |  |  |  |  |  |
U.S. Treasury securities and obligations of |  |  |  |  |  |  |  |  |
U.S. government agencies and corporations | $ | 688 |  |  | $ | — |  |  | $ | 5 |  |  | $ | (24) |  |  | $ | 669 |
Obligations of U.S. states and political subdivisions | 75 |  |  | — |  |  | — |  |  | (5) |  |  | 70 |
Corporate securities | 7,288 |  |  | (35) |  |  | 57 |  |  | (299) |  |  | 7,010 |
Asset-backed securities | 5,994 |  |  | — |  |  | 28 |  |  | (39) |  |  | 5,982 |
Mortgage-backed securities |  |  |  |  |  |  |  |  |
Commercial | 965 |  |  | — |  |  | 1 |  |  | (66) |  |  | 900 |
Agency residential | 5,205 |  |  | — |  |  | 13 |  |  | (287) |  |  | 4,931 |
Non-agency residential | 1,291 |  |  | — |  |  | 9 |  |  | (11) |  |  | 1,289 |
Foreign government securities | 2,330 |  |  | — |  |  | 13 |  |  | (147) |  |  | 2,196 |
Foreign corporate securities | 6,099 |  |  | — |  |  | 42 |  |  | (279) |  |  | 5,861 |
Total fixed maturity securities - available for sale | $ | 29,934 |  |  | $ | (36) |  |  | $ | 167 |  |  | $ | (1,157) |  |  | $ | 28,908 |
(Some amounts may not reconcile due to rounding.) The following tables show amortized cost, allowance for credit losses, gross URA(D) and fair value of fixed maturity securities - held to maturity for the periods indicated:
| At September 30, 2025
(Dollars in millions) | Amortized Cost |  | Allowance for Credit Losses |  | Unrealized Appreciation |  | Unrealized Depreciation |  | Fair Value
Fixed maturity securities - held to maturity |  |  |  |  |  |  |  |  |
Corporate securities | $ | 167 |  |  | $ | (2) |  |  | $ | 7 |  |  | $ | (1) |  |  | $ | 170 |
Asset-backed securities | 364 |  |  | (3) |  |  | 6 |  |  | (8) |  |  | 358 |
Mortgage-backed securities |  |  |  |  |  |  |  |  |
Commercial | 1 |  |  | — |  |  | — |  |  | — |  |  | 1 |
Foreign corporate securities | 79 |  |  | (1) |  |  | 6 |  |  | — |  |  | 84 |
Total fixed maturity securities - held to maturity | $ | 610 |  |  | (6) |  |  | $ | 19 |  |  | $ | (10) |  |  | $ | 613 |
(Some amounts may not reconcile due to rounding.)
| At December 31, 2024
(Dollars in millions) | Amortized Cost |  | Allowance for Credit Losses |  | Unrealized Appreciation |  | Unrealized Depreciation |  | Fair Value
Fixed maturity securities - held to maturity |  |  |  |  |  |  |  |  |
Corporate securities | $ | 177 |  |  | $ | (2) |  |  | $ | 5 |  |  | $ | (4) |  |  | $ | 175 |
Asset-backed securities | 484 |  |  | (4) |  |  | 5 |  |  | (8) |  |  | 477 |
Mortgage-backed securities |  |  |  |  |  |  |  |  |
Commercial | 21 |  |  | — |  |  | — |  |  | — |  |  | 21 |
Foreign corporate securities | 84 |  |  | (1) |  |  | 4 |  |  | — |  |  | 86 |
Total fixed maturity securities - held to maturity | $ | 765 |  |  | $ | (8) |  |  | $ | 14 |  |  | $ | (12) |  |  | $ | 759 |
(Some amounts may not reconcile due to rounding.) The amortized cost and fair value of fixed maturity securities - available for sale are shown in the following table by contractual maturity. As the stated maturity of such securities may not be indicative of actual maturities, the totals for mortgage-backed and asset-backed securities are shown separately.
| At September 30, 2025 |  | At December 31, 2024
(Dollars in millions) | Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
Fixed maturity securities – available for sale |  |  |  |  |  |  |
Due in one year or less | $ | 1,423 |  |  | $ | 1,390 |  |  | $ | 1,116 |  |  | $ | 1,080 |
Due after one year through five years | 10,521 |  |  | 10,558 |  |  | 8,774 |  |  | 8,480 |
Due after five years through ten years | 6,666 |  |  | 6,701 |  |  | 4,764 |  |  | 4,523 |
Due after ten years | 1,926 |  |  | 1,860 |  |  | 1,826 |  |  | 1,723 |
Asset-backed securities | 5,049 |  |  | 5,044 |  |  | 5,994 |  |  | 5,982 |
Mortgage-backed securities |  |  |  |  |  |  |
Agency commercial | 402 |  |  | 409 |  |  | — |  |  | — |
Non-agency commercial | 907 |  |  | 872 |  |  | 965 |  |  | 900 |
Agency residential | 5,594 |  |  | 5,484 |  |  | 5,205 |  |  | 4,931 |
Non-agency residential | 1,562 |  |  | 1,595 |  |  | 1,291 |  |  | 1,289 |
Total fixed maturity securities - available for sale | $ | 34,049 |  |  | $ | 33,912 |  |  | $ | 29,934 |  |  | $ | 28,908 |
(Some amounts may not reconcile due to rounding.) The amortized cost and fair value of fixed maturity securities - held to maturity are shown in the following table by contractual maturity. As the stated maturity of such securities may not be indicative of actual maturities, the totals for mortgage-backed and asset-backed securities are shown separately.
| At September 30, 2025 |  | At December 31, 2024
(Dollars in millions) | Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
Fixed maturity securities – held to maturity |  |  |  |  |  |  |
Due in one year or less | $ | 5 |  |  | $ | 5 |  |  | $ | 7 |  |  | $ | 7 |
Due after one year through five years | 88 |  |  | 89 |  |  | 67 |  |  | 67 |
Due after five years through ten years | 4 |  |  | 4 |  |  | 37 |  |  | 35 |
Due after ten years | 149 |  |  | 156 |  |  | 150 |  |  | 152 |
Asset-backed securities | 364 |  |  | 358 |  |  | 484 |  |  | 477 |
Mortgage-backed securities |  |  |  |  |  |  |
Commercial | 1 |  |  | 1 |  |  | 21 |  |  | 21 |
Total fixed maturity securities - held to maturity | $ | 610 |  |  | $ | 613 |  |  | $ | 765 |  |  | $ | 759 |
(Some amounts may not reconcile due to rounding.) The changes in net URA(D) for the Company’s investments are as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(Dollars in millions) | 2025 |  | 2024 |  | 2025 |  | 2024
Increase (decrease) during the period between the fair value and cost of |  |  |  |  |  |  |
investments carried at fair value, and deferred taxes thereon: |  |  |  |  |  |  |
Fixed maturity securities - available for sale, held to maturity and short-term investments | $ | 202 |  |  | $ | 840 |  |  | $ | 909 |  |  | $ | 563 |
Equity method investments | — |  |  | 18 |  |  | — |  |  | 18 |
Change in URA(D), pre-tax | 202 |  |  | 857 |  |  | 909 |  |  | 581 |
Deferred tax benefit (expense) | (36) |  |  | (123) |  |  | (147) |  |  | (60) |
Change in URA(D), net of deferred taxes, included in shareholders’ equity | $ | 165 |  |  | $ | 734 |  |  | $ | 762 |  |  | $ | 521 |
(Some amounts may not reconcile due to rounding.) The tables below display the aggregate fair value and gross unrealized depreciation of fixed maturity securities - available for sale by security type and contractual maturity, in each case subdivided according to length of time that the individual securities had been in a continuous unrealized loss position for the periods indicated:
| Duration of Unrealized Loss at September 30, 2025 by Security Type
| Less than 12 months |  | Greater than 12 months |  | Total
(Dollars in millions) | Fair Value |  | Gross Unrealized Depreciation |  | Fair Value |  | Gross Unrealized Depreciation |  | Fair Value |  | Gross Unrealized Depreciation
Fixed maturity securities - available for sale |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities and obligations of |  |  |  |  |  |  |  |  |  |  |
U.S. government agencies and corporations | $ | 162 |  |  | $ | (4) |  |  | $ | 363 |  |  | $ | (19) |  |  | $ | 524 |  |  | $ | (22) |
Obligations of U.S. states and political subdivisions | 8 |  |  | — |  |  | 36 |  |  | (5) |  |  | 44 |  |  | (6) |
Corporate securities | 1,345 |  |  | (35) |  |  | 1,926 |  |  | (154) |  |  | 3,271 |  |  | (189) |
Asset-backed securities | 440 |  |  | (6) |  |  | 281 |  |  | (9) |  |  | 721 |  |  | (15) |
Mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |
Agency commercial | 88 |  |  | — |  |  | 17 |  |  | (1) |  |  | 105 |  |  | (1) |
Non-agency commercial | 86 |  |  | (5) |  |  | 678 |  |  | (34) |  |  | 764 |  |  | (39) |
Agency residential | 454 |  |  | (5) |  |  | 1,683 |  |  | (173) |  |  | 2,138 |  |  | (178) |
Non-agency residential | 154 |  |  | (1) |  |  | 19 |  |  | — |  |  | 173 |  |  | (1) |
Foreign government securities | 691 |  |  | (14) |  |  | 720 |  |  | (86) |  |  | 1,411 |  |  | (100) |
Foreign corporate securities | 1,026 |  |  | (24) |  |  | 1,540 |  |  | (133) |  |  | 2,566 |  |  | (157) |
Total | $ | 4,453 |  |  | $ | (94) |  |  | $ | 7,264 |  |  | $ | (613) |  |  | $ | 11,717 |  |  | $ | (707) |
Securities where an allowance for credit loss was recorded | 2 |  |  | — |  |  | 15 |  |  | — |  |  | 17 |  |  | (1) |
Total fixed maturity securities - available for sale | $ | 4,455 |  |  | $ | (94) |  |  | $ | 7,279 |  |  | $ | (614) |  |  | $ | 11,734 |  |  | $ | (708) |
(Some amounts may not reconcile due to rounding.)
| Duration of Unrealized Loss at September 30, 2025 by Maturity
| Less than 12 months |  | Greater than 12 months |  | Total
(Dollars in millions) | Fair Value |  | Gross Unrealized Depreciation |  | Fair Value |  | Gross Unrealized Depreciation |  | Fair Value |  | Gross Unrealized Depreciation
Fixed maturity securities - available for sale |  |  |  |  |  |  |  |  |  |  |
Due in one year or less | $ | 195 |  |  | $ | (6) |  |  | $ | 617 |  |  | $ | (27) |  |  | $ | 812 |  |  | $ | (33) |
Due in one year through five years | 1,471 |  |  | (37) |  |  | 2,426 |  |  | (178) |  |  | 3,898 |  |  | (215) |
Due in five years through ten years | 889 |  |  | (12) |  |  | 1,064 |  |  | (128) |  |  | 1,953 |  |  | (140) |
Due after ten years | 675 |  |  | (21) |  |  | 478 |  |  | (64) |  |  | 1,154 |  |  | (85) |
Asset-backed securities | 440 |  |  | (6) |  |  | 281 |  |  | (9) |  |  | 721 |  |  | (15) |
Mortgage-backed securities | 782 |  |  | (11) |  |  | 2,398 |  |  | (208) |  |  | 3,179 |  |  | (219) |
Total | $ | 4,453 |  |  | $ | (94) |  |  | $ | 7,264 |  |  | $ | (613) |  |  | $ | 11,717 |  |  | $ | (707) |
Securities where an allowance for credit loss was recorded | 2 |  |  | — |  |  | 15 |  |  | — |  |  | 17 |  |  | (1) |
Total fixed maturity securities - available for sale | $ | 4,455 |  |  | $ | (94) |  |  | $ | 7,279 |  |  | $ | (614) |  |  | $ | 11,734 |  |  | $ | (708) |
(Some amounts may not reconcile due to rounding.) The aggregate fair value and gross unrealized losses related to fixed maturity securities - available for sale in an unrealized loss position at September 30, 2025 were $11.7 billion and $708 million, respectively. The fair value of securities for the single issuer (the U.S. government), whose securities comprised the largest unrealized loss position at September 30, 2025, amounted to less than 1.6% of the overall fair value of the Company’s fixed maturity securities - available for sale. The fair value of the securities for the issuer with the second largest unrealized loss position at September 30, 2025 comprised less than 0.6% of the Company’s fixed maturity securities available for sale. In addition, as indicated on the above table, there was no significant concentration of unrealized losses in any one market sector. The $94 million of unrealized losses related to fixed maturity securities - available for sale that have been in an unrealized loss position for less than one year were generally comprised of domestic and foreign corporate securities and foreign government securities. Of these unrealized losses, $91 million were related to securities that were rated investment grade by at least one nationally recognized rating agency. The $614 million of unrealized losses related to fixed maturity securities - available for sale in an unrealized loss position for more than one year related primarily to domestic and foreign corporate securities, agency residential and non-agency commercial mortgage-backed securities and foreign government securities. Of these unrealized losses, $605 million were related to securities that were rated investment grade by at least one nationally recognized rating agency. In all instances, there were no projected cash flow shortfalls to recover the full book value of the investments and the related interest obligations. The mortgage-backed securities still have excess credit coverage and are current on interest and principal payments. Based upon the Company’s current evaluation of securities in an unrealized loss position as of September 30, 2025, the unrealized losses are due to changes in interest rates and non-issuer-specific credit spreads and are not credit-related. In addition, the contractual terms of these securities do not permit these securities to be settled at a price less than their amortized cost. The tables below display the aggregate fair value and gross unrealized depreciation of fixed maturity securities - available for sale by security type and contractual maturity, in each case subdivided according to length of time that individual securities had been in a continuous unrealized loss position for the periods indicated:
| Duration of Unrealized Loss at December 31, 2024 by Security Type
| Less than 12 months |  | Greater than 12 months |  | Total
(Dollars in millions) | Fair Value |  | Gross Unrealized Depreciation |  | Fair Value |  | Gross Unrealized Depreciation |  | Fair Value |  | Gross Unrealized Depreciation
Fixed maturity securities - available for sale |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities and obligations of |  |  |  |  |  |  |  |  |  |  |
U.S. government agencies and corporations | $ | 80 |  |  | $ | (1) |  |  | $ | 398 |  |  | $ | (23) |  |  | $ | 478 |  |  | $ | (24) |
Obligations of U.S. states and political subdivisions | 9 |  |  | — |  |  | 40 |  |  | (5) |  |  | 48 |  |  | (5) |
Corporate securities | 2,744 |  |  | (76) |  |  | 2,132 |  |  | (221) |  |  | 4,876 |  |  | (297) |
Asset-backed securities | 958 |  |  | (20) |  |  | 537 |  |  | (19) |  |  | 1,495 |  |  | (39) |
Mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |
Commercial | 53 |  |  | (3) |  |  | 757 |  |  | (63) |  |  | 810 |  |  | (66) |
Agency residential | 2,754 |  |  | (115) |  |  | 1,226 |  |  | (172) |  |  | 3,980 |  |  | (287) |
Non-agency residential | 654 |  |  | (11) |  |  | 25 |  |  | — |  |  | 678 |  |  | (11) |
Foreign government securities | 851 |  |  | (35) |  |  | 828 |  |  | (112) |  |  | 1,679 |  |  | (147) |
Foreign corporate securities | 2,484 |  |  | (61) |  |  | 1,785 |  |  | (218) |  |  | 4,269 |  |  | (279) |
Total | $ | 10,587 |  |  | $ | (323) |  |  | $ | 7,728 |  |  | $ | (833) |  |  | $ | 18,315 |  |  | $ | (1,156) |
Securities where an allowance for credit loss was recorded | 17 |  |  | (1) |  |  | — |  |  | — |  |  | 17 |  |  | (1) |
Total fixed maturity securities - available for sale | $ | 10,604 |  |  | $ | (324) |  |  | $ | 7,728 |  |  | $ | (833) |  |  | $ | 18,332 |  |  | $ | (1,157) |
(Some amounts may not reconcile due to rounding.)
| Duration of Unrealized Loss at December 31, 2024 by Maturity
| Less than 12 months |  | Greater than 12 months |  | Total
(Dollars in millions) | Fair Value |  | Gross Unrealized Depreciation |  | Fair Value |  | Gross Unrealized Depreciation |  | Fair Value |  | Gross Unrealized Depreciation
Fixed maturity securities - available for sale |  |  |  |  |  |  |  |  |  |  |
Due in one year or less | $ | 138 |  |  | $ | (5) |  |  | $ | 544 |  |  | $ | (34) |  |  | $ | 682 |  |  | $ | (39) |
Due in one year through five years | 3,503 |  |  | (87) |  |  | 2,770 |  |  | (249) |  |  | 6,273 |  |  | (335) |
Due in five years through ten years | 1,850 |  |  | (50) |  |  | 1,382 |  |  | (220) |  |  | 3,232 |  |  | (271) |
Due after ten years | 677 |  |  | (32) |  |  | 487 |  |  | (76) |  |  | 1,164 |  |  | (107) |
Asset-backed securities | 958 |  |  | (20) |  |  | 537 |  |  | (19) |  |  | 1,495 |  |  | (39) |
Mortgage-backed securities | 3,461 |  |  | (129) |  |  | 2,008 |  |  | (235) |  |  | 5,469 |  |  | (364) |
Total | $ | 10,587 |  |  | $ | (323) |  |  | $ | 7,728 |  |  | $ | (833) |  |  | $ | 18,315 |  |  | $ | (1,156) |
Securities where an allowance for credit loss was recorded | 17 |  |  | (1) |  |  | — |  |  | — |  |  | 17 |  |  | (1) |
Total fixed maturity securities - available for sale | $ | 10,604 |  |  | $ | (324) |  |  | $ | 7,728 |  |  | $ | (833) |  |  | $ | 18,332 |  |  | $ | (1,157) |
(Some amounts may not reconcile due to rounding.) The aggregate fair value and gross unrealized losses related to fixed maturity securities - available for sale in an unrealized loss position at December 31, 2024 were $18.3 billion and $1.2 billion, respectively. The fair value of securities for the single issuer (the U.S. government), whose securities comprised the largest unrealized loss position at December 31, 2024, amounted to less than 1.6% of the overall fair value of the Company’s fixed maturity securities - available for sale. The fair value of the securities for the issuer with the second largest unrealized loss comprised less than 0.9% of the Company’s fixed maturity securities - available for sale. In addition, as indicated on the above table, there was no significant concentration of unrealized losses in any one market sector. The $324 million of unrealized losses related to fixed maturity securities - available for sale that have been in an unrealized loss position for less than one year were generally comprised of domestic and foreign corporate securities, asset-backed securities, agency residential mortgage-backed securities and foreign government securities. Of these unrealized losses, $319 million were related to securities that were rated investment grade by at least one nationally recognized rating agency. The $833 million of unrealized losses related to fixed maturity securities - available for sale in an unrealized loss position for more than one year related primarily to domestic and foreign corporate securities, agency residential mortgage-backed securities and foreign government securities. Of these unrealized losses, $810 million were related to securities that were rated investment grade by at least one nationally recognized rating agency. In all instances, there were no projected cash flow shortfalls to recover the full book value of the investments and the related interest obligations. The mortgage-backed securities still have excess credit coverage and are current on interest and principal payments. The components of net investment income are presented in the table below for the periods indicated:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(Dollars in millions) | 2025 |  | 2024 |  | 2025 |  | 2024
Fixed maturities | $ | 390 |  |  | $ | 378 |  |  | $ | 1,172 |  |  | $ | 1,099 |
Equity securities | 1 |  |  | 1 |  |  | 3 |  |  | 3 |
Short-term investments and cash | 43 |  |  | 54 |  |  | 125 |  |  | 135 |
Other invested assets |  |  |  |  |  |  |
Limited partnerships | 76 |  |  | 36 |  |  | 189 |  |  | 183 |
Other | 36 |  |  | 36 |  |  | 87 |  |  | 85 |
Gross investment income before adjustments | 546 |  |  | 504 |  |  | 1,577 |  |  | 1,506 |
Funds held interest income (expense) | 7 |  |  | 5 |  |  | 22 |  |  | 20 |
Future policy benefit reserve income (expense) | — |  |  | 1 |  |  | — |  |  | — |
Gross investment income | 553 |  |  | 510 |  |  | 1,598 |  |  | 1,525 |
Investment expenses | 13 |  |  | 13 |  |  | 35 |  |  | 44 |
Net investment income | $ | 540 |  |  | $ | 496 |  |  | $ | 1,563 |  |  | $ | 1,481 |
(Some amounts may not reconcile due to rounding.) The Company records results from limited partnership investments on the equity method of accounting with changes in value reported through net investment income. The net investment income from limited partnerships is dependent upon the Company’s share of the net asset values (“NAVs”) of interests underlying each limited partnership. Due to the timing of receiving financial information from these partnerships, the results are generally reported on a one month or quarter lag. If the Company determines there has been a significant decline in value of a limited partnership during this lag period, a loss will be recorded in the period in which the Company identifies the decline. The Company had contractual commitments to invest up to an additional $2.5 billion in limited partnerships and private placement loan securities at September 30, 2025. These commitments will be funded when called in accordance with the partnership and loan agreements, which have investment periods that expire, unless extended, through 2035. In 2022, the Company entered into corporate-owned life insurance (“COLI”) policies, which are invested in debt and equity securities. The COLI policies are carried within other invested assets at the policy cash surrender value of $1.8 billion and $1.7 billion as of September 30, 2025 and December 31, 2024, respectively. Variable Interest Entities The Company is engaged with various special purpose entities and other entities that are deemed to be VIEs, primarily as an investor through normal investment activities but also as an investment manager. A VIE is an entity that either has investors that lack certain essential characteristics of a controlling financial interest, such as simple majority kick-out rights, or lacks sufficient funds to finance its own activities without financial support provided by other entities. The Company performs ongoing qualitative assessments of its VIEs to determine whether the Company has a controlling financial interest in the VIE and therefore is the primary beneficiary. The Company is deemed to have a controlling financial interest when it has both the ability to direct the activities that most significantly impact the economic performance of the VIE and the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. Based on the Company’s assessment, if it determines it is the primary beneficiary, the Company consolidates the VIE in the Company’s consolidated financial statements. As of September 30, 2025 and December 31, 2024, the Company did not hold any investments for which it is the primary beneficiary. The Company, through normal investment activities, makes passive investments in general and limited partnerships and other alternative investments. For these non-consolidated VIEs, the Company has determined it is not the primary beneficiary as it has no ability to direct activities that could significantly affect the economic performance of the investments. The Company’s maximum exposure to loss as of September 30, 2025 and December 31, 2024 is limited to the total carrying value of $3.8 billion and $3.6 billion, respectively, which are included in general and limited partnerships. As of September 30, 2025, the Company has outstanding commitments totaling $1.5 billion whereby the Company is committed to fund these investments and may be called by the partnership during the commitment period to fund the purchase of new investments and partnership expenses. These investments are generally of a passive nature in that the Company does not take an active role in management. In addition, the Company makes passive investments in structured securities issued by VIEs for which the Company is not the manager. These investments are included in asset-backed securities, which includes collateralized loan obligations, and are classified as fixed maturities, available for sale. The Company has not provided financial or other support with respect to these investments other than its original investment. For these investments, the Company determined it is not the primary beneficiary due to the relative size of the Company’s investment in comparison to the principal amount of the structured securities issued by the VIEs, credit subordination that reduces the Company’s obligation to absorb losses or right to receive benefits or the Company’s inability to direct the activities that most significantly impact the economic performance of the VIEs. The Company’s maximum exposure to loss on these investments is limited to the amount of the Company’s investment. The components of net gains (losses) on investments are presented in the table below for the periods indicated:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(Dollars in millions) | 2025 |  | 2024 |  | 2025 |  | 2024
Fixed maturity securities |  |  |  |  |  |  |
Allowance for credit losses | $ | (12) |  |  | $ | (9) |  |  | $ | (14) |  |  | $ | (3) |
Net realized gains (losses) from dispositions | (36) |  |  | (25) |  |  | (48) |  |  | (47) |
Equity securities, fair value |  |  |  |  |  |  |
Net realized gains (losses) from dispositions | — |  |  | — |  |  | (1) |  |  | 1 |
Gains (losses) from fair value adjustments | — |  |  | 5 |  |  | 3 |  |  | (3) |
Other invested assets | — |  |  | 1 |  |  | — |  |  | — |
Short-term investments gain (loss) | — |  |  | 1 |  |  | — |  |  | 1 |
Total net gains (losses) on investments | $ | (47) |  |  | $ | (27) |  |  | $ | (59) |  |  | $ | (50) |
(Some amounts may not reconcile due to rounding.) The following tables provide a roll forward of the Company’s beginning and ending balance of allowance for credit losses for the periods indicated:
| Roll Forward of Allowance for Credit Losses - Fixed Maturities - Available for Sale
| Three Months Ended September 30, 2025 |  | Nine Months Ended September 30, 2025
(Dollars in millions) | Corporate Securities |  | Asset-Backed Securities |  |  |  | Foreign Corporate Securities |  | Total |  | Corporate Securities |  | Asset-Backed Securities |  |  |  | Foreign Corporate Securities |  | Total
Beginning balance | $ | (39) |  |  | $ | — |  |  |  |  | $ | — |  |  | $ | (40) |  |  | $ | (35) |  |  | $ | — |  |  |  |  | $ | — |  |  | $ | (36) |
Credit losses on securities where credit |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
losses were not previously recorded | (17) |  |  | (14) |  |  |  |  | — |  |  | (30) |  |  | (21) |  |  | (14) |  |  |  |  | — |  |  | (34) |
Increases in allowance on previously |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
impaired securities | (6) |  |  | — |  |  |  |  | — |  |  | (6) |  |  | (6) |  |  | — |  |  |  |  | — |  |  | (6) |
Decreases in allowance on previously |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
impaired securities | — |  |  | — |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  | — |  |  | — |
Reduction in allowance due to disposals | 25 |  |  | — |  |  |  |  | — |  |  | 25 |  |  | 25 |  |  | — |  |  |  |  | — |  |  | 25 |
Balance, end of period | $ | (38) |  |  | $ | (14) |  |  |  |  | $ | — |  |  | $ | (51) |  |  | $ | (38) |  |  | $ | (14) |  |  |  |  | $ | — |  |  | $ | (51) |
(Some amounts may not reconcile due to rounding.)
| Roll Forward of Allowance for Credit Losses - Fixed Maturities - Available for Sale
| Three Months Ended September 30, 2024 |  | Nine Months Ended September 30, 2024
(Dollars in millions) | Corporate Securities |  | Asset-Backed Securities |  |  |  | Foreign Corporate Securities |  | Total |  | Corporate Securities |  | Asset-Backed Securities |  |  |  | Foreign Corporate Securities |  | Total
Beginning balance | $ | (42) |  |  | $ | — |  |  |  |  | $ | — |  |  | $ | (42) |  |  | $ | (47) |  |  | $ | — |  |  |  |  | $ | (1) |  |  | $ | (48) |
Credit losses on securities where credit |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
losses were not previously recorded | (9) |  |  | — |  |  |  |  | — |  |  | (9) |  |  | (9) |  |  | — |  |  |  |  | — |  |  | (9) |
Increases in allowance on previously |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
impaired securities | — |  |  | — |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  | — |  |  | — |
Decreases in allowance on previously |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
impaired securities | — |  |  | — |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  | — |  |  | — |
Reduction in allowance due to disposals | — |  |  | — |  |  |  |  | — |  |  | — |  |  | 5 |  |  | — |  |  |  |  | 1 |  |  | 6 |
Balance, end of period | $ | (50) |  |  | $ | — |  |  |  |  | $ | — |  |  | $ | (51) |  |  | $ | (50) |  |  | $ | — |  |  |  |  | $ | — |  |  | $ | (51) |
(Some amounts may not reconcile due to rounding.)
| Roll Forward of Allowance for Credit Losses - Fixed Maturities - Held to Maturity
| Three Months Ended September 30, 2025 |  | Nine Months Ended September 30, 2025
(Dollars in millions) | Corporate Securities |  | Asset-Backed Securities |  | Foreign Corporate Securities |  | Total |  | Corporate Securities |  | Asset-Backed Securities |  | Foreign Corporate Securities |  | Total
Beginning balance | $ | (2) |  |  | $ | (4) |  |  | $ | (1) |  |  | $ | (7) |  |  | $ | (2) |  |  | $ | (4) |  |  | $ | (1) |  |  | $ | (8) |
Credit losses on securities where credit |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
losses were not previously recorded | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Increases in allowance on previously |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
impaired securities | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Decreases in allowance on previously |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
impaired securities | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Reduction in allowance due to disposals | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | 1 |  |  | 2 |
Balance, end of period | $ | (2) |  |  | $ | (3) |  |  | $ | (1) |  |  | $ | (6) |  |  | $ | (2) |  |  | $ | (3) |  |  | $ | (1) |  |  | $ | (6) |
(Some amounts may not reconcile due to rounding.)
| Roll Forward of Allowance for Credit Losses - Fixed Maturities - Held to Maturity
| Three Months Ended September 30, 2024 |  | Nine Months Ended September 30, 2024
(Dollars in millions) | Corporate Securities |  | Asset-Backed Securities |  | Foreign Corporate Securities |  | Total |  | Corporate Securities |  | Asset-Backed Securities |  | Foreign Corporate Securities |  | Total
Beginning balance | $ | (2) |  |  | $ | (5) |  |  | $ | (1) |  |  | (8) |  |  | $ | (2) |  |  | $ | (5) |  |  | $ | (1) |  |  | $ | (8) |
Credit losses on securities where credit |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
losses were not previously recorded | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (1) |  |  | (1) |
Increases in allowance on previously |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
impaired securities | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Decreases in allowance on previously |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
impaired securities | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Reduction in allowance due to disposals | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | — |  |  | 1 |
Balance, end of period | (2) |  |  | (5) |  |  | $ | (1) |  |  | $ | (8) |  |  | $ | (2) |  |  | $ | (5) |  |  | $ | (1) |  |  | $ | (8) |
(Some amounts may not reconcile due to rounding.) The proceeds and split between gross gains and losses from sales of fixed maturity securities - available for sale, fixed maturity securities - held to maturity and equity securities are presented in the table below for the periods indicated:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(Dollars in millions) | 2025 |  | 2024 |  | 2025 |  | 2024
Proceeds from sales of fixed maturity securities - available for sale | $ | 653 |  |  | $ | 3,237 |  |  | $ | 933 |  |  | $ | 4,322 |
Gross gains from sales | 34 |  |  | 59 |  |  | 43 |  |  | 86 |
Gross losses from sales | (69) |  |  | (84) |  |  | (91) |  |  | (133) |
Proceeds from sales of fixed maturity securities - held to maturity | $ | — |  |  | $ | — |  |  | $ | 10 |  |  | $ | — |
Gross gains from sales | — |  |  | — |  |  | — |  |  | — |
Gross losses from sales | — |  |  | — |  |  | (1) |  |  | — |
Proceeds from sales of equity securities | $ | 1 |  |  | $ | — |  |  | $ | 55 |  |  | $ | 15 |
Gross gains from sales | — |  |  | — |  |  | — |  |  | 2 |
Gross losses from sales | — |  |  | — |  |  | (1) |  |  | — |
(Some amounts may not reconcile due to rounding.) During the nine months ended September 30, 2025, the Company sold fixed maturity securities - held to maturity with a net carrying amount of $11 million, which had realized losses of $1 million as part of the sale. The Company's decision to sell was due to significant credit deterioration of the issuer of the securities.

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