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Investments | 6 Months Ended
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Jun. 30, 2025
Investments [Abstract] |
Investments | Investments Fixed Maturity AFS Securities The amortized cost, gross unrealized gains and losses, allowance for credit losses and fair value of fixed maturity available-for-sale (“AFS”) securities (in millions) were as follows:
| As of June 30, 2025
| Amortized Cost |  | Gross Unrealized |  | Allowance for Credit Losses |  | Fair Value
|  | Gains |  | Losses |  |
Fixed maturity AFS securities: |  |  |  |  |  |  |  |  |
Corporate bonds | $ | 75,551 |  |  | $ | 706 |  |  | $ | 8,849 |  |  | $ | 36 |  |  | $ | 67,372 |
U.S. government bonds | 591 |  |  | 6 |  |  | 34 |  |  | – |  |  | 563 |
State and municipal bonds | 2,663 |  |  | 17 |  |  | 426 |  |  | – |  |  | 2,254 |
Foreign government bonds | 281 |  |  | 13 |  |  | 55 |  |  | – |  |  | 239 |
RMBS | 2,217 |  |  | 30 |  |  | 179 |  |  | 5 |  |  | 2,063 |
CMBS | 2,080 |  |  | 10 |  |  | 118 |  |  | – |  |  | 1,972 |
ABS | 14,892 |  |  | 116 |  |  | 307 |  |  | 43 |  |  | 14,658 |
Hybrid and redeemable preferred securities | 254 |  |  | 23 |  |  | 11 |  |  | 1 |  |  | 265 |
Total fixed maturity AFS securities | $ | 98,529 |  |  | $ | 921 |  |  | $ | 9,979 |  |  | $ | 85 |  |  | $ | 89,386 |
| As of December 31, 2024
| Amortized Cost |  | Gross Unrealized |  | Allowance for Credit Losses |  | Fair Value
|  | Gains |  | Losses |  |
Fixed maturity AFS securities: |  |  |  |  |  |  |  |  |
Corporate bonds | $ | 75,556 |  |  | $ | 563 |  |  | $ | 9,655 |  |  | $ | 14 |  |  | $ | 66,450 |
U.S. government bonds | 429 |  |  | 3 |  |  | 41 |  |  | – |  |  | 391 |
State and municipal bonds | 2,798 |  |  | 18 |  |  | 445 |  |  | – |  |  | 2,371 |
Foreign government bonds | 282 |  |  | 11 |  |  | 56 |  |  | – |  |  | 237 |
RMBS | 2,066 |  |  | 24 |  |  | 220 |  |  | 7 |  |  | 1,863 |
CMBS | 1,817 |  |  | 4 |  |  | 156 |  |  | – |  |  | 1,665 |
ABS | 14,226 |  |  | 99 |  |  | 421 |  |  | 24 |  |  | 13,880 |
Hybrid and redeemable preferred securities | 241 |  |  | 25 |  |  | 11 |  |  | 1 |  |  | 254 |
Total fixed maturity AFS securities | $ | 97,415 |  |  | $ | 747 |  |  | $ | 11,005 |  |  | $ | 46 |  |  | $ | 87,111 |
The amortized cost and fair value of fixed maturity AFS securities by contractual maturities (in millions) as of June 30, 2025, were as follows:
| Amortized Cost |  | Fair Value
Due in one year or less | $ | 4,274 |  |  | $ | 4,243 |
Due after one year through five years | 19,470 |  |  | 19,110 |
Due after five years through ten years | 12,274 |  |  | 11,668 |
Due after ten years | 43,322 |  |  | 35,672 |
Subtotal | 79,340 |  |  | 70,693 |
Structured securities (RMBS, CMBS, ABS) | 19,189 |  |  | 18,693 |
Total fixed maturity AFS securities | $ | 98,529 |  |  | $ | 89,386 |
Actual maturities may differ from contractual maturities because issuers may have the right to call or pre-pay obligations. The fair value and gross unrealized losses of fixed maturity AFS securities (dollars in millions) for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows:
| As of June 30, 2025
| Less Than or Equal to Twelve Months |  | Greater Than Twelve Months |  | Total
| Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses (1)
Fixed maturity AFS securities: |  |  |  |  |  |  |  |  |  |  |
Corporate bonds | $ | 16,755 |  |  | $ | 3,309 |  |  | $ | 33,798 |  |  | $ | 5,540 |  |  | $ | 50,553 |  |  | $ | 8,849 |
U.S. government bonds | 51 |  |  | 2 |  |  | 223 |  |  | 32 |  |  | 274 |  |  | 34 |
State and municipal bonds | 742 |  |  | 192 |  |  | 965 |  |  | 234 |  |  | 1,707 |  |  | 426 |
Foreign government bonds | 26 |  |  | 4 |  |  | 126 |  |  | 51 |  |  | 152 |  |  | 55 |
RMBS | 645 |  |  | 52 |  |  | 832 |  |  | 127 |  |  | 1,477 |  |  | 179 |
CMBS | 329 |  |  | 18 |  |  | 1,016 |  |  | 100 |  |  | 1,345 |  |  | 118 |
ABS | 2,379 |  |  | 48 |  |  | 4,105 |  |  | 259 |  |  | 6,484 |  |  | 307 |
Hybrid and redeemable |  |  |  |  |  |  |  |  |  |  |
preferred securities | 22 |  |  | 2 |  |  | 90 |  |  | 9 |  |  | 112 |  |  | 11 |
Total fixed maturity AFS securities | $ | 20,949 |  |  | $ | 3,627 |  |  | $ | 41,155 |  |  | $ | 6,352 |  |  | $ | 62,104 |  |  | $ | 9,979 |
Total number of fixed maturity AFS securities in an unrealized loss position |  |  |  |  |  | 6,381 |
| As of December 31, 2024
| Less Than or Equal to Twelve Months |  | Greater Than Twelve Months |  | Total
| Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses (1)
Fixed maturity AFS securities: |  |  |  |  |  |  |  |  |  |  |
Corporate bonds | $ | 24,657 |  |  | $ | 4,054 |  |  | $ | 29,786 |  |  | $ | 5,601 |  |  | $ | 54,443 |  |  | $ | 9,655 |
U.S. government bonds | 86 |  |  | 3 |  |  | 224 |  |  | 38 |  |  | 310 |  |  | 41 |
State and municipal bonds | 1,087 |  |  | 228 |  |  | 760 |  |  | 217 |  |  | 1,847 |  |  | 445 |
Foreign government bonds | 32 |  |  | 5 |  |  | 118 |  |  | 51 |  |  | 150 |  |  | 56 |
RMBS | 795 |  |  | 76 |  |  | 760 |  |  | 144 |  |  | 1,555 |  |  | 220 |
CMBS | 579 |  |  | 50 |  |  | 777 |  |  | 106 |  |  | 1,356 |  |  | 156 |
ABS | 2,907 |  |  | 118 |  |  | 3,827 |  |  | 303 |  |  | 6,734 |  |  | 421 |
Hybrid and redeemable |  |  |  |  |  |  |  |  |  |  |
preferred securities | 23 |  |  | 3 |  |  | 93 |  |  | 8 |  |  | 116 |  |  | 11 |
Total fixed maturity AFS securities | $ | 30,166 |  |  | $ | 4,537 |  |  | $ | 36,345 |  |  | $ | 6,468 |  |  | $ | 66,511 |  |  | $ | 11,005 |
Total number of fixed maturity AFS securities in an unrealized loss position |  |  |  | 6,985 |
(1) As of June 30, 2025, and December 31, 2024, we recognized $18 million and $23 million of gross unrealized losses, respectively, in other comprehensive income (loss) (“OCI”) for fixed maturity AFS securities for which an allowance for credit losses has been recorded. The fair value, gross unrealized losses (in millions) and number of fixed maturity AFS securities where the fair value had declined and remained below amortized cost by greater than 20% were as follows:
| As of June 30, 2025
| Fair Value |  | Gross Unrealized Losses |  | Number of Securities (1)
Less than six months | $ | 1,846 |  |  | $ | 571 |  |  | 359 |
Six months or greater, but less than nine months | 1,215 |  |  | 372 |  |  | 256 |
Nine months or greater, but less than twelve months | 1,516 |  |  | 498 |  |  | 304 |
Twelve months or greater | 4,651 |  |  | 2,294 |  |  | 796 |
Total | $ | 9,228 |  |  | $ | 3,735 |  |  | 1,715 |
| As of December 31, 2024
| Fair Value |  | Gross Unrealized Losses |  | Number of Securities (1)
Less than six months | $ | 5,405 |  |  | $ | 1,621 |  |  | 799 |
Six months or greater, but less than nine months | 371 |  |  | 198 |  |  | 216 |
Nine months or greater, but less than twelve months | 71 |  |  | 28 |  |  | 37 |
Twelve months or greater | 4,440 |  |  | 2,218 |  |  | 741 |
Total | $ | 10,287 |  |  | $ | 4,065 |  |  | 1,793 |
(1) We may reflect a security in more than one aging category based on various purchase dates. Our gross unrealized losses on fixed maturity AFS securities decreased by $1.0 billion for the six months ended June 30, 2025. As discussed further below, we do not believe the unrealized loss position as of June 30, 2025, required an impairment recognized in earnings as: (i) we did not intend to sell these fixed maturity AFS securities; (ii) it is not more likely than not that we will be required to sell the fixed maturity AFS securities before recovery of their amortized cost basis; and (iii) the difference in the fair value compared to the amortized cost was due to factors other than credit loss. Based upon this evaluation as of June 30, 2025, management believes we have the ability to generate adequate amounts of cash from our normal operations (e.g., insurance premiums, fee income and investment income) to meet cash requirements with a prudent margin of safety without requiring the sale of our impaired securities. As of June 30, 2025, the unrealized losses associated with our corporate bond, U.S. government bond, state and municipal bond and foreign government bond securities were attributable primarily to rising interest rates and widening credit spreads since purchase. We performed a detailed analysis of the financial performance of the underlying issuers and determined that we expected to recover the entire amortized cost of each impaired security. Credit ratings express opinions about the credit quality of a security. Securities rated investment grade (those rated BBB- or higher by S&P Global Ratings (“S&P”) or Baa3 or higher by Moody’s Investors Service (“Moody’s”)) are generally considered by the rating agencies and market participants to be low credit risk. As of June 30, 2025, and December 31, 2024, 96% of the fair value of our corporate bond portfolio was rated investment grade. As of June 30, 2025, and December 31, 2024, the portion of our corporate bond portfolio rated below investment grade had an amortized cost of $3.0 billion and $2.9 billion, respectively, and a fair value of $2.9 billion and $2.8 billion, respectively. Based upon the analysis discussed above, we believe that as of June 30, 2025, and December 31, 2024, we would have recovered the amortized cost of each corporate bond. As of June 30, 2025, the unrealized losses associated with our mortgage-backed securities (“MBS”) and asset-backed securities (“ABS”) were attributable primarily to rising interest rates and widening credit spreads since purchase. We assessed for credit impairment using a cash flow model that incorporates key assumptions including default rates, severities and prepayment rates. We estimated losses for a security by forecasting the underlying loans in each transaction. The forecasted loan performance was used to project cash flows to the various tranches in the structure, as applicable. Our forecasted cash flows also considered, as applicable, independent industry analyst reports and forecasts and other independent market data. Based upon our assessment of the expected credit losses of the security given the performance of the underlying collateral compared to our subordination or other credit enhancement, we expected to recover the entire amortized cost of each impaired security. As of June 30, 2025, the unrealized losses associated with our hybrid and redeemable preferred securities were attributable primarily to wider credit spreads caused by illiquidity in the market and subordination within the capital structure, as well as credit risk of underlying issuers. For our hybrid and redeemable preferred securities, we evaluated the financial performance of the underlying issuers based upon credit performance and investment ratings and determined that we expected to recover the entire amortized cost of each impaired security. Credit Loss Impairment on Fixed Maturity AFS Securities We regularly review our fixed maturity AFS securities for declines in fair value that we determine to be impairment-related, including those attributable to credit risk factors that may require an allowance for credit losses. Changes in the allowance for credit losses on fixed maturity AFS securities (in millions), aggregated by investment category, were as follows:
| As of or For the Three Months Ended June 30, 2025 |  |
| Corporate Bonds |  | RMBS |  | ABS |  | Hybrids |  | Total |  |
Balance as of beginning-of-period | $ | 23 |  |  | $ | 6 |  |  | $ | 44 |  |  | $ | 1 |  |  | $ | 74 |  |  |
Additions from purchases of PCD debt securities (1) | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  |
Additions for securities for which credit losses were |  |  |  |  |  |  |  |  |  |  |
not previously recognized | 17 |  |  | – |  |  | – |  |  | – |  |  | 17 |  |  |
Additions (reductions) for securities for which |  |  |  |  |  |  |  |  |  |  |
credit losses were previously recognized | 4 |  |  | (1) |  |  | (1) |  |  | – |  |  | 2 |  |  |
Reductions for securities charged off | (8) |  |  | – |  |  | – |  |  | – |  |  | (8) |  |  |
Balance as of end-of-period (2) | $ | 36 |  |  | $ | 5 |  |  | $ | 43 |  |  | $ | 1 |  |  | $ | 85 |  |  |
| As of or For the Six Months Ended June 30, 2025 |
| Corporate Bonds |  | RMBS |  | ABS |  | Hybrids |  | Total |  |
Balance as of beginning-of-year | $ | 14 |  |  | $ | 7 |  |  | $ | 24 |  |  | $ | 1 |  |  | $ | 46 |  |  |
Additions from purchases of PCD debt securities (1) | – |  |  | – |  |  | – |  |  | – |  |  | – |  |  |
Additions for securities for which credit losses were |  |  |  |  |  |  |  |  |  |  |
not previously recognized | 25 |  |  | – |  |  | 8 |  |  | – |  |  | 33 |  |  |
Additions (reductions) for securities for which |  |  |  |  |  |  |  |  |  |  |
credit losses were previously recognized | 5 |  |  | (2) |  |  | 11 |  |  | – |  |  | 14 |  |  |
Reductions for securities charged-off | (8) |  |  | – |  |  | – |  |  | – |  |  | (8) |  |  |
Balance as of end-of-period (2) | $ | 36 |  |  | $ | 5 |  |  | $ | 43 |  |  | $ | 1 |  |  | $ | 85 |  |  |
| As of or For the Three Months Ended June 30, 2024
| Corporate Bonds |  | RMBS |  | ABS |  | Hybrids |  | Total
Balance as of beginning-of-period | $ | 10 |  |  | $ | 6 |  |  | $ | 4 |  |  | $ | 1 |  |  | $ | 21 |
Additions from purchases of PCD debt securities (1) | – |  |  | – |  |  | – |  |  | – |  |  | – |
Additions for securities for which credit losses were |  |  |  |  |  |  |  |  |
not previously recognized | 1 |  |  | – |  |  | 15 |  |  | – |  |  | 16 |
Additions (reductions) for securities for which |  |  |  |  |  |  |  |  |
credit losses were previously recognized | 8 |  |  | – |  |  | – |  |  | – |  |  | 8 |
Reductions for disposed securities | (1) |  |  | – |  |  | – |  |  | – |  |  | (1) |
Reductions for securities charged off | (5) |  |  | – |  |  | – |  |  | – |  |  | (5) |
Balance as of end-of-period (2) | $ | 13 |  |  | $ | 6 |  |  | $ | 19 |  |  | $ | 1 |  |  | $ | 39 |
| As of or For the Six Months Ended June 30, 2024
| Corporate Bonds |  | RMBS |  | ABS |  | Hybrids |  | Total
Balance as of beginning-of-year | $ | 8 |  |  | $ | 6 |  |  | $ | 4 |  |  | $ | 1 |  |  | $ | 19 |
Additions from purchases of PCD debt securities (1) | – |  |  | – |  |  | – |  |  | – |  |  | – |
Additions for securities for which credit losses were |  |  |  |  |  |  |  |  |
not previously recognized | 2 |  |  | – |  |  | 15 |  |  | – |  |  | 17 |
Additions (reductions) for securities for which |  |  |  |  |  |  |  |  |
credit losses were previously recognized | 11 |  |  | – |  |  | – |  |  | – |  |  | 11 |
Reductions for disposed securities | (3) |  |  | – |  |  | – |  |  | – |  |  | (3) |
Reductions for securities charged-off | (5) |  |  | – |  |  | – |  |  | – |  |  | (5) |
Balance as of end-of-period (2) | $ | 13 |  |  | $ | 6 |  |  | $ | 19 |  |  | $ | 1 |  |  | $ | 39 |
(1) Represents purchased credit-deteriorated (“PCD”) fixed maturity AFS securities. (2) As of June 30, 2025 and 2024, accrued investment income on fixed maturity AFS securities totaled $886 million and $906 million, respectively, and was excluded from the estimate of credit losses. Losses from loan modifications were $13 million and $3 million for the three months ended June 30, 2025 and 2024, respectively, and $18 million and $3 million for the six months ended June 30, 2025 and 2024, respectively, reported in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). Mortgage Loans on Real Estate The following provides the current and past due composition of our mortgage loans on real estate (in millions):
| As of June 30, 2025 |  | As of December 31, 2024
| Commercial |  | Residential |  | Total |  | Commercial |  | Residential |  | Total
Current | $ | 17,644 |  |  | $ | 4,154 |  |  | $ | 21,798 |  |  | $ | 17,567 |  |  | $ | 3,387 |  |  | $ | 20,954 |
30 to 59 days past due | – |  |  | 92 |  |  | 92 |  |  | 6 |  |  | 71 |  |  | 77 |
60 to 89 days past due | – |  |  | 38 |  |  | 38 |  |  | – |  |  | 33 |  |  | 33 |
90 or more days past due | 57 |  |  | 114 |  |  | 171 |  |  | 35 |  |  | 90 |  |  | 125 |
Allowance for credit losses | (97) |  |  | (65) |  |  | (162) |  |  | (99) |  |  | (53) |  |  | (152) |
Unamortized premium (discount) | (5) |  |  | 97 |  |  | 92 |  |  | (6) |  |  | 83 |  |  | 77 |
Mark-to-market gains (losses) (1) | (33) |  |  | – |  |  | (33) |  |  | (31) |  |  | – |  |  | (31) |
Total carrying value | $ | 17,566 |  | $ | 4,430 |  | $ | 21,996 |  | $ | 17,472 |  | $ | 3,611 |  | $ | 21,083
(1) Represents the mark-to-market on certain mortgage loans on real estate that support our modified coinsurance agreements, where the investment results are passed directly to the reinsurers, and for which we have elected the fair value option. As of June 30, 2025, the amortized cost and fair value of such mortgage loans on real estate that were in nonaccrual status was $48 million and $30 million, respectively. As of December 31, 2024, the amortized cost and fair value of such mortgage loans on real estate that were in nonaccrual status was $30 million and $21 million, respectively. As of June 30, 2025 and December 31, 2024, there were no such mortgage loans on real estate that were more than 90 days past due and still accruing interest. For additional information, see “Fair Value Option” in Note 13. The amortized cost of mortgage loans on real estate on nonaccrual status (in millions) was as follows, excluding certain mortgage loans on real estate that support our modified coinsurance agreements where the investment results are passed directly to the reinsurers:
|  |  | As of June 30, 2025 |  |  |  | As of December 31, 2024
Commercial mortgage loans on real estate |  |  | $ | 10 |  |  |  |  | $ | 4 |
Residential mortgage loans on real estate |  |  | 117 |  |  |  |  | 92 |
Total |  |  | $ | 127 |  |  |  |  | $ | 96 |
We use loan-to-value (“LTV”) and debt-service coverage ratios as credit quality indicators for our commercial mortgage loans on real estate. The amortized cost of commercial mortgage loans on real estate (dollars in millions) by year of origination and credit quality indicator was as follows:
| As of June 30, 2025
| LTV Less Than 65% |  | Debt-Service Coverage Ratio |  | LTV 65% to 75% |  | Debt-Service Coverage Ratio |  | LTV Greater Than 75% |  | Debt-Service Coverage Ratio |  | Total
Origination Year |  |  |  |  |  |  |  |  |  |  |  |  |
2025 | $ | 630 |  |  | 1.65 |  |  | $ | 65 |  |  | 1.25 |  |  | $ | 13 |  |  | 1.14 |  |  | $ | 708 |
2024 | 1,540 |  |  | 1.73 |  |  | 73 |  |  | 1.42 |  |  | 7 |  |  | 1.48 |  |  | 1,620 |
2023 | 1,343 |  |  | 1.77 |  |  | 39 |  |  | 1.37 |  |  | 2 |  |  | 1.12 |  |  | 1,384 |
2022 | 1,713 |  |  | 2.16 |  |  | 86 |  |  | 1.54 |  |  | 5 |  |  | 1.37 |  |  | 1,804 |
2021 | 2,242 |  |  | 3.71 |  |  | 41 |  |  | 1.66 |  |  | 9 |  |  | 1.58 |  |  | 2,292 |
2020 and prior | 9,799 |  |  | 2.56 |  |  | 56 |  |  | 1.45 |  |  | 33 |  |  | 2.09 |  |  | 9,888 |
Total | $ | 17,267 |  |  |  |  | $ | 360 |  |  |  |  | $ | 69 |  |  |  |  | $ | 17,696 |
| As of December 31, 2024
| LTV Less Than 65% |  | Debt-Service Coverage Ratio |  | LTV 65% to 75% |  | Debt-Service Coverage Ratio |  | LTV Greater Than 75% |  | Debt-Service Coverage Ratio |  | Total
Origination Year |  |  |  |  |  |  |  |  |  |  |  |  |
2024 | $ | 1,548 |  |  | 1.73 |  |  | $ | 83 |  |  | 1.41 |  |  | $ | – |  |  | – |  |  | $ | 1,631 |
2023 | 1,348 |  |  | 1.78 |  |  | 44 |  |  | 1.36 |  |  | – |  |  | – |  |  | 1,392 |
2022 | 1,724 |  |  | 2.11 |  |  | 94 |  |  | 1.55 |  |  | 4 |  |  | 1.30 |  |  | 1,822 |
2021 | 2,267 |  |  | 3.50 |  |  | 47 |  |  | 1.52 |  |  | – |  |  | – |  |  | 2,314 |
2020 | 1,167 |  |  | 3.33 |  |  | 4 |  |  | 1.53 |  |  | – |  |  | – |  |  | 1,171 |
2019 and prior | 9,138 |  |  | 2.38 |  |  | 126 |  |  | 1.58 |  |  | 8 |  |  | 1.30 |  |  | 9,272 |
Total | $ | 17,192 |  |  |  |  | $ | 398 |  |  |  |  | $ | 12 |  |  |  |  | $ | 17,602 |
We use loan performance status as the primary credit quality indicator for our residential mortgage loans on real estate. The amortized cost of residential mortgage loans on real estate (in millions) by year of origination and credit quality indicator was as follows:
| As of June 30, 2025
| Performing |  | Nonperforming |  | Total
Origination Year |  |  |  |  |
2025 | $ | 754 |  |  | $ | – |  |  | $ | 754 |
2024 | 2,074 |  |  | 39 |  |  | 2,113 |
2023 | 472 |  |  | 20 |  |  | 492 |
2022 | 457 |  |  | 33 |  |  | 490 |
2021 | 404 |  |  | 14 |  |  | 418 |
2020 and prior | 217 |  |  | 11 |  |  | 228 |
Total | $ | 4,378 |  |  | $ | 117 |  |  | $ | 4,495 |
| As of December 31, 2024
| Performing |  | Nonperforming |  | Total
Origination Year |  |  |  |  |
2024 | $ | 1,895 |  |  | $ | 14 |  |  | $ | 1,909 |
2023 | 557 |  |  | 16 |  |  | 573 |
2022 | 492 |  |  | 33 |  |  | 525 |
2021 | 427 |  |  | 11 |  |  | 438 |
2020 | 65 |  |  | 4 |  |  | 69 |
2019 and prior | 136 |  |  | 14 |  |  | 150 |
Total | $ | 3,572 |  |  | $ | 92 |  |  | $ | 3,664 |
Credit Losses on Mortgage Loans on Real Estate In connection with our recognition of an allowance for credit losses for mortgage loans on real estate, we perform a quantitative analysis using a probability of default/loss given default/exposure at default approach to estimate expected credit losses in our mortgage loan portfolio as well as unfunded commitments related to commercial mortgage loans, exclusive of certain mortgage loans held at fair value. Changes in the allowance for credit losses on mortgage loans on real estate (in millions) were as follows:
| As of or For the Three Months Ended June 30, 2025
| Commercial |  | Residential |  | Total
Balance as of beginning-of-period | $ | 98 |  |  | $ | 56 |  |  | $ | 154 |
Additions (reductions) from provision for credit loss |  |  |  |  |
expense (1) | (1) |  |  | 9 |  |  | 8 |
Additions from purchases of PCD mortgage loans on |  |  |  |  |
real estate | – |  |  | – |  |  | – |
Balance as of end-of-period (2) | $ | 97 |  |  | $ | 65 |  |  | $ | 162 |
| As of or For the Six Months Ended June 30, 2025
| Commercial |  | Residential |  | Total
Balance as of beginning-of-year | $ | 99 |  |  | $ | 53 |  |  | $ | 152 |
Additions (reductions) from provision for credit loss |  |  |  |  |
expense (1) | (2) |  |  | 12 |  |  | 10 |
Additions from purchases of PCD mortgage loans on |  |  |  |  |
real estate | – |  |  | – |  |  | – |
Balance as of end-of-period (2) | $ | 97 |  |  | $ | 65 |  |  | $ | 162 |
| As of or For the Three Months Ended June 30, 2024
| Commercial |  | Residential |  | Total
Balance as of beginning-of-period | $ | 84 |  |  | $ | 31 |  |  | $ | 115 |
Additions (reductions) from provision for credit loss |  |  |  |  |
expense (1) | 9 |  |  | 9 |  |  | 18 |
Additions from purchases of PCD mortgage loans on |  |  |  |  |
real estate | – |  |  | – |  |  | – |
Balance as of end-of-period (2) | $ | 93 |  |  | $ | 40 |  |  | $ | 133 |
| As of or For the Six Months Ended June 30, 2024
| Commercial |  | Residential |  | Total
Balance as of beginning-of-year | $ | 86 |  |  | $ | 28 |  |  | $ | 114 |
Additions (reductions) from provision for credit loss |  |  |  |  |
expense (1) | 7 |  |  | 12 |  |  | 19 |
Additions from purchases of PCD mortgage loans on |  |  |  |  |
real estate | – |  |  | – |  |  | – |
Balance as of end-of-period (2) | $ | 93 |  |  | $ | 40 |  |  | $ | 133 |
(1) We recognized less than $1 million of credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate for the three months ended June 30, 2025 and 2024, and less than $1 million and $1 million for the six months ended June 30, 2025 and 2024, respectively. (2) Accrued investment income on mortgage loans on real estate totaled $107 million and $81 million as of June 30, 2025 and 2024, respectively, and was excluded from the estimate of credit losses. Alternative Investments As of June 30, 2025, and December 31, 2024, alternative investments included investments in 372 and 371 different partnerships, respectively, and represented approximately 3% of total investments. Impairments on Fixed Maturity AFS Securities Details underlying credit loss benefit (expense) incurred as a result of impairments that were recognized in net income (loss) and included in realized gain (loss) on fixed maturity AFS securities (in millions) were as follows:
| For the Three Months Ended June 30, |  | For the Six Months Ended June 30, |
| 2025 |  | 2024 |  | 2025 |  | 2024 |  |  |  |
Credit Loss Benefit (Expense) |  |  |  |  |  |  |  |  |  |  |
Fixed maturity AFS securities: |  |  |  |  |  |  |  |  |  |  |
Corporate bonds | $ | (21) |  |  | $ | (8) |  |  | $ | (30) |  |  | $ | (10) |  |  |  |  |
RMBS | 1 |  |  | – |  |  | 2 |  |  | – |  |  |  |  |
ABS | 1 |  |  | (15) |  |  | (19) |  |  | (15) |  |  |  |  |
Total credit loss benefit (expense) | $ | (19) |  |  | $ | (23) |  |  | $ | (47) |  |  | $ | (25) |  |  |  |  |
Payables for Collateral on Investments The carrying value of the payables for collateral on investments included on the Consolidated Balance Sheets and the fair value of the related investments or collateral (in millions) consisted of the following:
| As of June 30, 2025 |  | As of December 31, 2024
| Carrying Value |  | Fair Value |  | Carrying Value |  | Fair Value
Collateral payable for derivative investments (1) | $ | 5,003 |  |  | $ | 5,003 |  |  | $ | 7,213 |  |  | $ | 7,213 |
Securities pledged under securities lending agreements (2) | 155 |  |  | 150 |  |  | 157 |  |  | 151 |
Securities pledged under repurchase agreements (3) | 418 |  |  | 435 |  |  | – |  |  | – |
Investments pledged for FHLBI (4) | 2,890 |  |  | 4,124 |  |  | 2,650 |  |  | 3,657 |
Total payables for collateral on investments | $ | 8,466 |  |  | $ | 9,712 |  |  | $ | 10,020 |  |  | $ | 11,021 |
(1) We obtain collateral based upon contractual provisions with our counterparties. These agreements take into consideration the counterparties’ credit rating as compared to ours, the fair value of the derivative investments and specified thresholds that if exceeded result in the receipt of cash that is typically invested in cash and invested cash or fixed maturity AFS securities. This also includes interest payable on collateral. See Note 5 for additional information. (2) Our pledged securities under securities lending agreements are included in fixed maturity AFS securities on the Consolidated Balance Sheets. We generally obtain collateral in an amount equal to 102% and 105% of the fair value of the domestic and foreign securities, respectively. We value collateral daily and obtain additional collateral when deemed appropriate. The cash received in our securities lending program is typically invested in cash and invested cash or fixed maturity AFS securities. (3) Our pledged securities under repurchase agreements are included in fixed maturity AFS securities on the Consolidated Balance Sheets. The collateral requirements are generally 80% to 95% of the fair value of the securities, and our agreements with third parties contain contractual provisions to allow for additional collateral to be obtained when necessary. The cash received in our repurchase program is typically invested in cash and invested cash or fixed maturity AFS securities. (4) Our pledged investments for Federal Home Loan Bank (“FHLB”) of Indianapolis (“FHLBI”) are included in fixed maturity AFS securities and mortgage loans on real estate on the Consolidated Balance Sheets. The collateral requirements are generally 105% to 115% of the fair value for fixed maturity AFS securities and 155% to 175% of the fair value for mortgage loans on real estate. The cash received in these transactions is primarily invested in cash and invested cash or fixed maturity AFS securities. Increase (decrease) in payables for collateral on investments (in millions) consisted of the following:
| For the Six Months Ended June 30,
| 2025 |  | 2024
Collateral payable for derivative investments | $ | (2,210) |  |  | $ | 2,462 |
Securities pledged under securities |  |  |
lending agreements | (2) |  |  | (3) |
Securities pledged under repurchase agreements | 418 |  |  | – |
Investments pledged for FHLBI | 240 |  |  | 550 |
Total increase (decrease) in payables for |  |  |
collateral on investments | $ | (1,554) |  |  | $ | 3,009 |
We have elected not to offset our repurchase agreements and securities lending transactions in the consolidated financial statements. The remaining contractual maturities of repurchase agreements and securities lending transactions accounted for as secured borrowings (in millions) were as follows:
| As of June 30, 2025
| Overnight and Continuous |  | Up to 30 Days |  | 30-90 Days |  | Greater Than 90 Days |  | Total
Repurchase Agreements |  |  |  |  |  |  |  |  |
Corporate bonds | $ | – |  |  | $ | – |  |  | $ | – |  |  | $ | 418 |  |  | $ | 418 |
Securities Lending |  |  |  |  |  |  |  |  |
Corporate bonds | $ | 143 |  |  | $ | – |  |  | $ | – |  |  | $ | – |  |  | $ | 143 |
State and municipal bonds | 4 |  |  | – |  |  | – |  |  | – |  |  | 4 |
Foreign government bonds | 2 |  |  | – |  |  | – |  |  | – |  |  | 2 |
Equity securities | 6 |  |  | – |  |  | – |  |  | – |  |  | 6 |
Total gross secured borrowings | $ | 155 |  |  | $ | – |  |  | $ | – |  |  | $ | 418 |  |  | $ | 573 |
| As of December 31, 2024
| Overnight and Continuous |  | Up to 30 Days |  | 30-90 Days |  | Greater Than 90 Days |  | Total
Securities Lending |  |  |  |  |  |  |  |  |
Corporate bonds | $ | 144 |  |  | $ | – |  |  | $ | – |  |  | $ | – |  |  | $ | 144 |
U.S. government bonds | 1 |  |  | – |  |  | – |  |  | – |  |  | 1 |
Equity securities | 12 |  |  | – |  |  | – |  |  | – |  |  | 12 |
Total gross secured borrowings | $ | 157 |  |  | $ | – |  |  | $ | – |  |  | $ | – |  |  | $ | 157 |
We accept collateral in the form of securities in connection with repurchase agreements. In instances where we are permitted to sell or re-pledge the securities received, we report the fair value of the collateral received and a related obligation to return the collateral in the consolidated financial statements. In addition, we receive securities in connection with securities borrowing agreements that we are permitted to sell or re-pledge. As of June 30, 2025, we had not received any collateral and, therefore, had not sold or repledged any collateral under these agreements. We also accept collateral from derivative counterparties in the form of securities that we are permitted to sell or re-pledge. As of June 30, 2025, the fair value of this collateral received that we are permitted to sell or re-pledge was $3.2 billion, and we had re-pledged $358 million of this collateral to cover our collateral requirements. We had not pledged any fixed maturity AFS securities to derivative counterparties as of June 30, 2025. Investment Commitments As of June 30, 2025, our investment commitments were $4.3 billion, which included $3.6 billion of limited partnerships (“LPs”), $426 million of mortgage loans on real estate and $258 million of private placement securities. Concentrations of Financial Instruments As of June 30, 2025, and December 31, 2024, our most significant investments in one issuer were our investments in securities issued by the Federal National Mortgage Association with a fair value of $941 million and $851 million, respectively, or 1% of total investments, and our investments in securities issued by the Federal Home Loan Mortgage Corporation with a fair value of $621 million and $566 million, respectively, or less than 1% of total investments. These concentrations include fixed maturity AFS, trading and equity securities. As of June 30, 2025, and December 31, 2024, our most significant investments in one industry were our investments in securities in the financial services industry with a fair value of $13.4 billion, or 10% of total investments, and our investments in securities in the consumer non-cyclical industry with a fair value of $12.9 billion, or 10% of total investments. These concentrations include fixed maturity AFS, trading and equity securities.

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