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Investments in Available-for-sale Fixed Maturity Securities (Tables)

6 Months Ended

Jun. 30, 2024

Investments, Debt and Equity Securities [Abstract]

Schedule of Amortized Cost and Fair Value of Available-for-Sale Fixed Maturity Securities

The amortized cost and fair value of fixed maturity securities are shown below:

						Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Allowance for Credit Losses						Fair Value
						(Dollars in millions)
June 30, 2024
Fixed maturity, available-for-sale:
U.S. treasury and government						$	85					$	—					$	(2)					$	—					$	83
U.S. states and political subdivisions						3,240						84						(25)						—						3,299
Foreign governments						441						12						—						—						453
Corporate debt securities						32,080						481						(578)						(34)						31,949
Residential mortgage-backed securities						1,067						21						(8)						(1)						1,079
Commercial mortgage-backed securities						2,744						39						(17)						—						2,766
Collateralized debt securities						6,823						51						(21)						(2)						6,851
Total investments in fixed maturity securities						$	46,480					$	688					$	(651)					$	(37)					$	46,480
December 31, 2023
Fixed maturity, available-for-sale:
U.S. treasury and government						$	63					$	—					$	(1)					$	—					$	62
U.S. states and political subdivisions						594						1						(17)						—						578
Foreign governments						9						—						—						—						9
Corporate debt securities						11,144						79						(420)						(19)						10,784
Residential mortgage-backed securities						131						—						(4)						(1)						126
Commercial mortgage-backed securities						—						—						—						—						—
Collateralized debt securities						1,340						9						(27)						(4)						1,318
Total investments in fixed maturity securities						$	13,281					$	89					$	(469)					$	(24)					$	12,877

Schedule of Amortized Cost and Fair Value, by Contractual Maturity, of Available-for-Sale Fixed Maturity Securities

The amortized cost and fair value of fixed maturity securities at June 30, 2024, by contractual maturity are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. All of our mortgage and collateralized debt securities provide for periodic payments throughout their lives and are shown below as separate lines.

						June 30, 2024
						Amortized Cost						Fair Value
						(Dollars in millions)
Due in one year or less						$	1,219					$	1,218
Due after one year through five years						12,048						11,982
Due after five years through ten years						7,416						7,363
Due after ten years						15,163						15,221
						35,846						35,784
Residential mortgage-backed securities						1,067						1,079
Commercial mortgage-backed securities						2,744						2,766
Collateralized debt securities						6,823						6,851
						$	46,480					$	46,480

Schedule of Proceeds from Sales of Available-for-Sale Fixed Maturity Securities with Related Gross Realized Gains and Losses

Proceeds from sales of available-for-sale fixed maturity securities, with the related gross realized gains and losses, are shown below:

						Three Months Ended June 30,												Six Months Ended June 30,
						2024						2023						2024						2023
						(Dollars in millions)
Proceeds from sales and maturities of investments - Fixed maturity, available for sale						$	1,820					$	7,157					$	2,413					$	8,386
Gross realized gains						2						1						4						1
Gross realized losses						(21)						(24)						(23)						(49)

Schedule of Gross Unrealized Losses and Fair Value of Available-for-Sale Fixed Maturity Securities

The gross unrealized losses and fair value of available-for-sale fixed maturity securities, aggregated by investment category and the length of time individual securities have been in a continuous unrealized loss position due to market factors are shown below:

			Less than 12 months																		12 months or more																		Total
			Number of Issues						Gross Unrealized Losses (1)						Fair Value						Number of Issues						Gross Unrealized Losses (1)						Fair Value						Number of Issues						Gross Unrealized Losses (1)						Fair Value
			(Dollars in millions)
June 30, 2024
Fixed maturity, available-for-sale:
U.S. treasury and government			18						$	—					$	23					15						$	(2)					$	48					33						$	(2)					$	71
U.S. states and political subdivisions			178						(11)						283						162						(14)						305						340						(25)						588
Foreign governments			3						—						16						1						—						9						4						—						25
Corporate debt securities			992						(114)						3,772						1,027						(464)						6,450						2,019						(578)						10,222
Residential mortgage-backed securities			59						(4)						82						35						(4)						75						94						(8)						157
Commercial mortgage-backed securities			124						(17)						846						—						—						—						124						(17)						846
Collateralized debt securities			349						(14)						2,707						39						(7)						292						388						(21)						2,999
Total			1,723						$	(160)					$	7,729					1,279						$	(491)					$	7,179					3,002						$	(651)					$	14,908
December 31, 2023
Fixed maturity, available-for-sale:
U.S. treasury and government			17						$	(1)					$	27					35						$	—					$	25					52						$	(1)					$	52
U.S. states and political subdivisions			214						(3)						219						142						(14)						285						356						(17)						504
Foreign governments			—						—						—						2						—						9						2						—						9
Corporate debt securities			1,343						(141)						2,941						1,906						(279)						6,475						3,249						(420)						9,416
Residential mortgage-backed securities			6						(1)						39						39						(3)						64						45						(4)						103
Commercial mortgage-backed securities			—						—						—						—						—						—						—						—						—
Collateralized debt securities			102						(4)						258						201						(23)						782						303						(27)						1,040
Total			1,682						$	(150)					$	3,484					2,325						$	(319)					$	7,640					4,007						$	(469)					$	11,124

(1)Unrealized losses have been reduced to reflect the allowance for credit losses of $37 million and $24 million as of June 30, 2024 and December 31, 2023, respectively.

Schedule of Allowance for Credit Loss for Available-for-Sale Fixed Maturity Securities

The rollforward of the allowance for credit losses for available-for-sale fixed maturity securities is shown below for the three and six months ended June 30, 2024 and 2023.

						Three Months Ended June 30, 2024
						Corporate Securities						Residential Mortgage Backed Securities						Commercial Mortgage Backed Securities						Collateralized Debt Securities						Total
						(Dollars in millions)
Beginning balance						$	(24)					$	(1)					$	—					$	(3)					$	(28)
Acquisition from business combination						—						—						—						—						—
Credit losses recognized on securities for which credit losses were not previously recorded						(13)						—						—						—						(13)
Reductions for securities sold during the period						—						—						—						—						—
Allowance on securities that had an allowance recorded in a previous period						3						—						—						1						4
Balance as of June 30, 2024						$	(34)					$	(1)					$	—					$	(2)					$	(37)
						Three Months Ended June 30, 2023
						Corporate Securities						Residential Mortgage Backed Securities						Commercial Mortgage Backed Securities						Collateralized Debt Securities						Total
						(Dollars in millions)
Beginning balance						$	(12)					$	—					$	—					$	(10)					$	(22)
Acquisition from business combination						—						—						—						—						—
Credit losses recognized on securities for which credit losses were not previously recorded						(17)						(1)						—						(1)						(19)
Reductions for securities sold during the period						1						—						—						—						1
Allowance on securities that had an allowance recorded in a previous period						6						—						—						2						8
Balance as of June 30, 2023						$	(22)					$	(1)					$	—					$	(9)					$	(32)
						Six Months Ended June 30, 2024
						Corporate Securities						Residential Mortgage Backed Securities						Commercial Mortgage Backed Securities						Collateralized Debt Securities						Total
						(Dollars in millions)
Beginning balance						$	(19)					$	(1)					$	—					$	(4)					$	(24)
Acquisition from business combination						—						—						—						—						—
Credit losses recognized on securities for which credit losses were not previously recorded						(33)						—						—						—						(33)
Reductions for securities sold during the period						1						—						—						—						1
Allowance on securities that had an allowance recorded in a previous period						17						—						—						1						18
Balance as of June 30, 2024						$	(34)					$	(1)					$	—					$	(2)					$	(37)
						Six Months Ended June 30, 2023
						Corporate Securities						Residential Mortgage Backed Securities						Commercial Mortgage Backed Securities						Collateralized Debt Securities						Total
						(Dollars in millions)
Beginning balance						$	(24)					$	—					$	—					$	(5)					$	(29)
Acquisition from business combination						—						—						—						—						—
Credit losses recognized on securities for which credit losses were not previously recorded						(18)						(1)						—						(6)						(25)
Reductions for securities sold during the period						2						—						—						—						2
Allowance on securities that had an allowance recorded in a previous period						18						—						—						2						20
Balance as of June 30, 2023						$	(22)					$	(1)					$	—					$	(9)					$	(32)

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- Definition

Tabular disclosure of allowance for credit loss on investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 326
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479106/326-30-50-9

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Tabular disclosure of fair value of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale), in unrealized loss position, without allowance for credit loss. Includes beneficial interest in securitized financial asset.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 326
-SubTopic 30
-Name Accounting Standards Codification
-Section 55
-Paragraph 8
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479081/326-30-55-8

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-Section 50
-Paragraph 6
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-Section 50
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Tabular disclosure of the reconciliation of available-for-sale securities from cost basis to fair value.

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Tabular disclosure of the proceeds from sales of available-for-sale securities and the gross realized gains and gross realized losses that have been included in earnings as a result of those sales.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
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