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Available-For-Sale Fixed Maturity Securities | 6 Months Ended
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Jun. 30, 2025
Investments, Debt and Equity Securities [Abstract] |
Available-For-Sale Fixed Maturity Securities | 3. Available-For-Sale Fixed Maturity Securities The total amortized cost, fair value, allowance for credit losses, and gross unrealized gains and losses of available-for-sale 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, 2025 |  |  |  |  |  |  |  |  |
U.S. treasury and government | $ | 93 |  |  | $ | 1 |  |  | $ | (1) |  |  | $ | — |  |  | $ | 93 |
U.S. state and municipal | 3,093 |  |  | 63 |  |  | (35) |  |  | — |  |  | 3,121 |
Foreign governments | 1,315 |  |  | 16 |  |  | (13) |  |  | — |  |  | 1,318 |
Corporate debt securities | 34,373 |  |  | 733 |  |  | (217) |  |  | (1) |  |  | 34,888 |
Residential mortgage-backed securities | 966 |  |  | 35 |  |  | (2) |  |  | — |  |  | 999 |
Commercial mortgage-backed securities | 3,196 |  |  | 98 |  |  | (35) |  |  | — |  |  | 3,259 |
Collateralized debt securities | 5,224 |  |  | 92 |  |  | (62) |  |  | (1) |  |  | 5,253 |
Total fixed maturity securities | $ | 48,260 |  |  | $ | 1,038 |  |  | $ | (365) |  |  | $ | (2) |  |  | $ | 48,931 |
December 31, 2024 |  |  |  |  |  |  |  |  |
U.S. treasury and government | $ | 87 |  |  | $ | — |  |  | $ | (1) |  |  | $ | — |  |  | $ | 86 |
U.S. state and municipal | 3,200 |  |  | 37 |  |  | (30) |  |  | — |  |  | 3,207 |
Foreign governments | 1,568 |  |  | 6 |  |  | (33) |  |  | — |  |  | 1,541 |
Corporate debt securities | 32,770 |  |  | 454 |  |  | (350) |  |  | (26) |  |  | 32,848 |
Residential mortgage-backed securities | 1,086 |  |  | 25 |  |  | (4) |  |  | (1) |  |  | 1,106 |
Commercial mortgage-backed securities | 2,755 |  |  | 65 |  |  | (24) |  |  | — |  |  | 2,796 |
Collateralized debt securities | 5,661 |  |  | 77 |  |  | (30) |  |  | — |  |  | 5,708 |
Total fixed maturity securities | $ | 47,127 |  |  | $ | 664 |  |  | $ | (472) |  |  | $ | (27) |  |  | $ | 47,292 |
The amortized cost and fair value of available-for-sale fixed maturity securities at June 30, 2025, by contractual maturity are shown below. Actual maturities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Residential and commercial mortgage-backed securities and collateralized debt securities, which are not due at a single maturity, have been separately presented below.
| Available-For-Sale
| Amortized Cost |  | Fair Value
| (Dollars in millions)
Due in one year or less | $ | 1,711 |  |  | $ | 1,713 |
Due after one year through five years | 16,509 |  |  | 16,774 |
Due after five years through ten years | 5,284 |  |  | 5,426 |
Due after ten years | 15,370 |  |  | 15,507 |
| 38,874 |  |  | 39,420 |
Residential mortgage-backed securities | 966 |  |  | 999 |
Commercial mortgage-backed securities | 3,196 |  |  | 3,259 |
Collateralized debt securities | 5,224 |  |  | 5,253 |
Total | $ | 48,260 |  |  | $ | 48,931 |
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,
| 2025 |  | 2024 |  | 2025 |  | 2024
| (Dollars in millions)
Proceeds from sales of available-for-sale fixed maturity securities | $ | 3,533 |  |  | $ | 1,820 |  |  | $ | 4,881 |  |  | $ | 2,413 |
Gross realized gains | 8 |  |  | 2 |  |  | 10 |  |  | 4 |
Gross realized (losses) | (61) |  |  | (21) |  |  | (62) |  |  | (23) |
The Company has pledged bonds in connection with certain agreements and transactions, such as financing and reinsurance agreements. The carrying value of bonds pledged was $9.6 billion and $8.8 billion as of June 30, 2025 and December 31, 2024, respectively. In accordance with various regulations, the Company has securities on deposit with regulating authorities with a carrying value of $65 million and $65 million as of June 30, 2025 and December 31, 2024, respectively. There are no restrictions on these assets. As of June 30, 2025 and December 31, 2024, amounts loaned under reverse repurchase agreements were $400 million and $400 million, respectively, and the fair value of the collateral, comprised of equity securities, was $1.0 billion and $783 million, respectively. 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, 2025 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury and government | 1 |  |  | $ | — |  |  | $ | 8 |  |  | 3 |  |  | $ | (1) |  |  | $ | 51 |  |  | 4 |  |  | $ | (1) |  |  | $ | 59 |
U.S. state and municipal | 140 |  |  | (17) |  |  | 788 |  |  | 93 |  |  | (18) |  |  | 222 |  |  | 233 |  |  | (35) |  |  | 1,010 |
Foreign governments | 9 |  |  | (13) |  |  | 452 |  |  | 2 |  |  | — |  |  | 25 |  |  | 11 |  |  | (13) |  |  | 477 |
Corporate debt securities | 633 |  |  | (118) |  |  | 4,706 |  |  | 267 |  |  | (99) |  |  | 3,024 |  |  | 900 |  |  | (217) |  |  | 7,730 |
Residential mortgage-backed securities | 38 |  |  | (1) |  |  | 138 |  |  | 4 |  |  | (1) |  |  | 21 |  |  | 42 |  |  | (2) |  |  | 159 |
Commercial mortgage-backed securities | 47 |  |  | (26) |  |  | 481 |  |  | 15 |  |  | (9) |  |  | 137 |  |  | 62 |  |  | (35) |  |  | 618 |
Collateralized debt securities | 124 |  |  | (27) |  |  | 1,406 |  |  | 19 |  |  | (35) |  |  | 467 |  |  | 143 |  |  | (62) |  |  | 1,873 |
Total | 992 |  |  | $ | (202) |  |  | $ | 7,979 |  |  | 403 |  |  | $ | (163) |  |  | $ | 3,947 |  |  | 1,395 |  |  | $ | (365) |  |  | $ | 11,926 |
December 31, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury and government | 3 |  |  | $ | — |  |  | $ | 29 |  |  | 1 |  |  | $ | (1) |  |  | $ | 36 |  |  | 4 |  |  | $ | (1) |  |  | $ | 65 |
U.S. state and municipal | 174 |  |  | (20) |  |  | 851 |  |  | 190 |  |  | (10) |  |  | 280 |  |  | 364 |  |  | (30) |  |  | 1,131 |
Foreign governments | 8 |  |  | (33) |  |  | 1,206 |  |  | — |  |  | — |  |  | — |  |  | 8 |  |  | (33) |  |  | 1,206 |
Corporate debt securities | 1,514 |  |  | (165) |  |  | 6,615 |  |  | 384 |  |  | (185) |  |  | 4,015 |  |  | 1,898 |  |  | (350) |  |  | 10,630 |
Residential mortgage-backed securities | 47 |  |  | (3) |  |  | 178 |  |  | 16 |  |  | (1) |  |  | 61 |  |  | 63 |  |  | (4) |  |  | 239 |
Commercial mortgage-backed securities | 104 |  |  | (24) |  |  | 667 |  |  | — |  |  | — |  |  | — |  |  | 104 |  |  | (24) |  |  | 667 |
Collateralized debt securities | 178 |  |  | (29) |  |  | 1,182 |  |  | 5 |  |  | (1) |  |  | 22 |  |  | 183 |  |  | (30) |  |  | 1,204 |
Total | 2,028 |  |  | $ | (274) |  |  | $ | 10,728 |  |  | 596 |  |  | $ | (198) |  |  | $ | 4,414 |  |  | 2,624 |  |  | $ | (472) |  |  | $ | 15,142 |
(1)Unrealized losses have been reduced to reflect the allowance for credit losses of $2 million and $27 million as of June 30, 2025 and December 31, 2024, respectively. The unrealized losses as of June 30, 2025 and December 31, 2024 are principally related to the timing of the purchases of certain securities, which carry less yield than those available as of those dates. Approximately 96% and 89% of the unrealized losses on fixed maturity securities shown in the above table for June 30, 2025 and December 31, 2024, respectively, are on securities that are rated investment grade, defined as being the highest two NAIC designations. The Company expects to recover the amortized cost on all securities except for those securities on which it recognized an allowance for credit loss. In addition, as the Company did not have the intent to sell fixed maturity securities with unrealized losses and it was not more likely than not that the Company would be required to sell these securities prior to recovery of the amortized cost, which may be maturity, the Company did not write down these investments to fair value through the Consolidated Statements of Operations. Allowance for Credit Losses Several assumptions and underlying estimates are made in the evaluation of allowance for credit loss. Examples include financial condition, near-term and long-term prospects of the issue or issuer, including relevant industry conditions and trends and implications of rating agency actions and offering prices. Based on this evaluation, unrealized losses on available-for-sale securities where an allowance for credit loss was not recorded were concentrated within the financials sector as of June 30, 2025 and December 31, 2024. The rollforward of the allowance for credit losses for available-for-sale fixed maturity securities is shown below:
| Three Months Ended June 30, 2025
| Corporate Securities |  | Residential Mortgage Backed Securities |  |  |  | Collateralized Debt Securities |  | Total
| (Dollars in millions)
Beginning balance | $ | (9) |  |  | $ | (1) |  |  |  |  | $ | (1) |  |  | $ | (11) |
Credit losses recognized on securities for which credit losses were not previously recorded | (3) |  |  | — |  |  |  |  | (1) |  |  | (4) |
Reductions for securities sold during the period | — |  |  | — |  |  |  |  | — |  |  | — |
Allowance on securities that had an allowance recorded in a previous period | 11 |  |  | 1 |  |  |  |  | 1 |  |  | 13 |
Balance as of June 30, 2025 | $ | (1) |  |  | $ | — |  |  |  |  | $ | (1) |  |  | $ | (2) |
| Three Months Ended June 30, 2024
| Corporate Securities |  | Residential Mortgage Backed Securities |  |  |  | Collateralized Debt Securities |  | Total
| (Dollars in millions)
Beginning balance | $ | (24) |  |  | $ | (1) |  |  |  |  | $ | (3) |  |  | $ | (28) |
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) |
| Six Months Ended June 30, 2025
| Corporate Securities |  | Residential Mortgage Backed Securities |  |  |  | Collateralized Debt Securities |  | Total
| (Dollars in millions)
Beginning balance | $ | (26) |  |  | $ | (1) |  |  |  |  | $ | — |  |  | $ | (27) |
Credit losses recognized on securities for which credit losses were not previously recorded | (10) |  |  | — |  |  |  |  | (2) |  |  | (12) |
Reductions for securities sold during the period | 16 |  |  | — |  |  |  |  | — |  |  | 16 |
Allowance on securities that had an allowance recorded in a previous period | 19 |  |  | 1 |  |  |  |  | 1 |  |  | 21 |
Balance as of June 30, 2025 | $ | (1) |  |  | $ | — |  |  |  |  | $ | (1) |  |  | $ | (2) |
| Six Months Ended June 30, 2024
| Corporate Securities |  | Residential 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 | (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) |
4. Equity Securities The net gains (losses) on equity securities recognized in “Investment related gains (losses)” on the Consolidated Statements of Operations are shown below:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
| (Dollars in millions)
Unrealized gains (losses) on equity securities | $ | 104 |  |  | $ | 33 |  |  | $ | 97 |  |  | $ | 22 |
Net gains (losses) on equity securities sold | (1) |  |  | 2 |  |  | 1 |  |  | 2 |
Net gains (losses) on equity securities | $ | 103 |  |  | $ | 35 |  |  | $ | 98 |  |  | $ | 24 |
Equity securities by market sector distribution are shown below, based on carrying value:
| June 30, 2025 |  | December 31, 2024
Consumer goods | 7 | % |  | 5 | %
Education | 20 | % |  | 20 | %
Energy and utilities | 36 | % |  | 10 | %
Finance | 7 | % |  | 48 | %
Healthcare | 3 | % |  | 2 | %
Industrials | 22 | % |  | 12 | %
Other | 5 | % |  | 3 | %
Total | 100 | % |  | 100 | %

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