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Available-For-Sale Fixed Maturity Securities (Tables) | 9 Months Ended
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Sep. 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)
September 30, 2024 |  |  |  |  |  |  |  |  |  |
Fixed maturity, available-for-sale: |  |  |  |  |  |  |  |  |  |
U.S. treasury and government |  | $ | 78 |  |  | $ | 1 |  |  | $ | (1) |  |  | $ | — |  |  | $ | 78 |
U.S. states and political subdivisions |  | 3,184 |  |  | 212 |  |  | (13) |  |  | — |  |  | 3,383 |
Foreign governments |  | 398 |  |  | 31 |  |  | — |  |  | — |  |  | 429 |
Corporate debt securities |  | 30,183 |  |  | 1,492 |  |  | (182) |  |  | (20) |  |  | 31,473 |
Residential mortgage-backed securities |  | 1,067 |  |  | 57 |  |  | (3) |  |  | (1) |  |  | 1,120 |
Commercial mortgage-backed securities |  | 2,710 |  |  | 94 |  |  | (12) |  |  | — |  |  | 2,792 |
Collateralized debt securities |  | 6,329 |  |  | 96 |  |  | (16) |  |  | (1) |  |  | 6,408 |
Total fixed maturity securities |  | $ | 43,949 |  |  | $ | 1,983 |  |  | $ | (227) |  |  | $ | (22) |  |  | $ | 45,683 |
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 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 September 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.
|  | September 30, 2024 |
|  | Amortized Cost |  | Fair Value |  |
|  | (Dollars in millions) |  |
Due in one year or less |  | $ | 1,371 |  |  | $ | 1,376 |  |  |
Due after one year through five years |  | 11,414 |  |  | 11,637 |  |  |
Due after five years through ten years |  | 6,985 |  |  | 7,246 |  |  |
Due after ten years |  | 14,073 |  |  | 15,104 |  |  |
|  | 33,843 |  |  | 35,363 |  |  |
Residential mortgage-backed securities |  | 1,067 |  |  | 1,120 |  |  |
Commercial mortgage-backed securities |  | 2,710 |  |  | 2,792 |  |  |
Collateralized debt securities |  | 6,329 |  |  | 6,408 |  |  |
|  | $ | 43,949 |  |  | $ | 45,683 |  |  |
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 September 30, |  | Nine Months Ended September 30,
|  | 2024 |  | 2023 |  | 2024 |  | 2023
|  | (Dollars in millions)
Proceeds from sales and maturities of investments - Fixed maturity, available-for-sale |  | $ | 1,071 |  |  | $ | 2,931 |  |  | $ | 3,484 |  |  | $ | 11,317 |
Gross realized gains |  | 2 |  |  | 2 |  |  | 6 |  |  | 3 |
Gross realized (losses) |  | (97) |  |  | (4) |  |  | (120) |  |  | (53) |
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)
September 30, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturity, available-for-sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury and government | 19 |  |  | $ | (1) |  |  | $ | 17 |  |  | 8 |  |  | $ | — |  |  | $ | 36 |  |  | 27 |  |  | $ | (1) |  |  | $ | 53 |
U.S. states and political subdivisions | 92 |  |  | (6) |  |  | 178 |  |  | 166 |  |  | (7) |  |  | 309 |  |  | 258 |  |  | (13) |  |  | 487 |
Foreign governments | — |  |  | — |  |  | — |  |  | 1 |  |  | — |  |  | 5 |  |  | 1 |  |  | — |  |  | 5 |
Corporate debt securities | 248 |  |  | (67) |  |  | 2,732 |  |  | 777 |  |  | (115) |  |  | 5,287 |  |  | 1,025 |  |  | (182) |  |  | 8,019 |
Residential mortgage-backed securities | 15 |  |  | (1) |  |  | 30 |  |  | 33 |  |  | (2) |  |  | 73 |  |  | 48 |  |  | (3) |  |  | 103 |
Commercial mortgage-backed securities | 115 |  |  | (12) |  |  | 589 |  |  | — |  |  | — |  |  | — |  |  | 115 |  |  | (12) |  |  | 589 |
Collateralized debt securities | 266 |  |  | (13) |  |  | 1,520 |  |  | 22 |  |  | (3) |  |  | 165 |  |  | 288 |  |  | (16) |  |  | 1,685 |
Total | 755 |  |  | $ | (100) |  |  | $ | 5,066 |  |  | 1,007 |  |  | $ | (127) |  |  | $ | 5,875 |  |  | 1,762 |  |  | $ | (227) |  |  | $ | 10,941 |
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 $22 million and $24 million as of September 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 nine months ended September 30, 2024 and 2023.
|  | Three Months Ended September 30, 2024
|  | Corporate Securities |  | Residential Mortgage Backed Securities |  | Commercial Mortgage Backed Securities |  | Collateralized Debt Securities |  | Total
|  | (Dollars in millions)
Beginning balance |  | $ | (34) |  |  | $ | (1) |  |  | $ | — |  |  | $ | (2) |  |  | $ | (37) |
Credit losses recognized on securities for which credit losses were not previously recorded |  | (3) |  |  | — |  |  | — |  |  | — |  |  | (3) |
Reductions for securities sold during the period |  | 2 |  |  | — |  |  | — |  |  | — |  |  | 2 |
Allowance on securities that had an allowance recorded in a previous period |  | 15 |  |  | — |  |  | — |  |  | 1 |  |  | 16 |
Balance as of September 30, 2024 |  | $ | (20) |  |  | $ | (1) |  |  | $ | — |  |  | $ | (1) |  |  | $ | (22) |
|  | Three Months Ended September 30, 2023
|  | Corporate Securities |  | Residential Mortgage Backed Securities |  | Commercial Mortgage Backed Securities |  | Collateralized Debt Securities |  | Total
|  | (Dollars in millions)
Beginning balance |  | $ | (22) |  |  | $ | (1) |  |  | $ | — |  |  | $ | (9) |  |  | $ | (32) |
Credit losses recognized on securities for which credit losses were not previously recorded |  | (6) |  |  | — |  |  | — |  |  | — |  |  | (6) |
Reductions for securities sold during the period |  | 2 |  |  | — |  |  | — |  |  | — |  |  | 2 |
Allowance on securities that had an allowance recorded in a previous period |  | 16 |  |  | — |  |  | — |  |  | 4 |  |  | 20 |
Balance as of September 30, 2023 |  | $ | (10) |  |  | $ | (1) |  |  | $ | — |  |  | $ | (5) |  |  | $ | (16) |
|  | Nine Months Ended September 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) |
Credit losses recognized on securities for which credit losses were not previously recorded |  | (36) |  |  | — |  |  | — |  |  | — |  |  | (36) |
Reductions for securities sold during the period |  | 3 |  |  | — |  |  | — |  |  | — |  |  | 3 |
Allowance on securities that had an allowance recorded in a previous period |  | 32 |  |  | — |  |  | — |  |  | 3 |  |  | 35 |
Balance as of September 30, 2024 |  | $ | (20) |  |  | $ | (1) |  |  | $ | — |  |  | $ | (1) |  |  | $ | (22) |
|  | Nine Months Ended September 30, 2023
|  | Corporate Securities |  | Residential Mortgage Backed Securities |  | Commercial Mortgage Backed Securities |  | Collateralized Debt Securities |  | Total
|  | (Dollars in millions)
Beginning balance |  | $ | (24) |  |  | $ | — |  |  | $ | — |  |  | $ | (5) |  |  | $ | (29) |
Credit losses recognized on securities for which credit losses were not previously recorded |  | (24) |  |  | (1) |  |  | — |  |  | (6) |  |  | (31) |
Reductions for securities sold during the period |  | 4 |  |  | — |  |  | — |  |  | — |  |  | 4 |
Allowance on securities that had an allowance recorded in a previous period |  | 34 |  |  | — |  |  | — |  |  | 6 |  |  | 40 |
Balance as of September 30, 2023 |  | $ | (10) |  |  | $ | (1) |  |  | $ | — |  |  | $ | (5) |  |  | $ | (16) |

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