v3.25.2
Investments
 6 Months Ended
Jun. 30, 2025
Investments [Abstract]  
Investment Investments
The following table provides amortized cost, gross unrealized gains, gross unrealized losses and fair value for our fixed-maturity and short-term investments:
(Dollars in millions)Amortized
cost		Gross unrealizedFair value
At June 30, 2025gainslosses
Fixed-maturity:    
Corporate $9,136 $107 $256 $8,987 
States, municipalities and political subdivisions5,004 8 304 4,708 
Government-sponsored enterprises 2,455 1 9 2,447 
Asset-backed736 8 12 732 
United States government184 — 1 183 
Foreign government20 — — 20 
Total fixed-maturity17,535 124 582 17,077 
Short-term100 — — 100 
Total fixed-maturity and short-term investments$17,635 $124 $582 $17,177 
At December 31, 2024    
Fixed-maturity:    
Corporate $8,652 $61 $333 $8,380 
States, municipalities and political subdivisions4,976 15 270 4,721 
Government-sponsored enterprises2,282 1 9 2,274 
Asset-backed 567 1 17 551 
United States government228 — 2 226 
Foreign government30 — — 30 
Total fixed-maturity16,735 78 631 16,182 
Short-term298 — — 298 
Total fixed-maturity and short-term investments$17,033 $78 $631 $16,480 
 
The decrease in net unrealized investment losses in our fixed-maturity portfolio at June 30, 2025, is primarily due to a decrease in U.S. Treasury yields partially offset by a slight widening of corporate credit spreads. Our asset-backed securities had an average rating of Aa2/AA and Aa1/AA at June 30, 2025 and December 31, 2024, respectively.
The table below provides fair values and gross unrealized losses by investment category and by the duration of the continuous unrealized loss positions:
(Dollars in millions)Less than 12 months12 months or moreTotal
At June 30, 2025Fair
value		Unrealized
losses		Fair
value		Unrealized
losses		Fair
value		Unrealized
losses
Fixed-maturity:      
Corporate $1,738 $51 $3,037 $205 $4,775 $256 
States, municipalities and political subdivisions1,505 49 2,062 255 3,567 304 
Government-sponsored enterprises1,427 9 124 — 1,551 9 
Asset-backed237 7 78 5 315 12 
United States government— — 62 1 62 1 
Foreign government— — — — — — 
Total fixed-maturity4,907 116 5,363 466 10,270 582 
Short-term100 — — — 100 — 
Total fixed-maturity and short-term investments$5,007 $116 $5,363 $466 $10,370 $582 
At December 31, 2024      
Fixed-maturity:      
Corporate $2,815 $78 $3,634 $255 $6,449 $333 
States, municipalities and political subdivisions1,513 25 1,898 245 3,411 270 
Government-sponsored enterprises1,876 8 92 1 1,968 9 
Asset-backed331 10 96 7 427 17 
United States government48 — 100 2 148 2 
Foreign government— — 3 — 3 — 
Total fixed-maturity6,583 121 5,823 510 12,406 631 
Short-term100 — — — 100 — 
Total fixed-maturity and short-term investments$6,683 $121 $5,823 $510 $12,506 $631 

Contractual maturity dates for our fixed-maturity and short-term investments were:
(Dollars in millions)Amortized
cost		Fair
value		% of fair
value
At June 30, 2025
Maturity dates:   
Due in one year or less$1,087 $1,082 6.3 %
Due after one year through five years3,766 3,760 21.9 
Due after five years through ten years3,955 3,916 22.8 
Due after ten years8,827 8,419 49.0 
Total$17,635 $17,177 100.0 %

Actual maturities may differ from contractual maturities when there is a right to call or prepay obligations with or without call or prepayment penalties.
The following table provides investment income and investment gains and losses, net:
(Dollars in millions)Three months ended June 30,Six months ended June 30,
2025202420252024
Investment income:
Interest$214 $173 $424 $342 
Dividends70 69 137 141 
Other 5 4 12 11 
Total289 246 573 494 
Less investment expenses4 4 8 7 
Total$285 $242 $565 $487 
Investment gains and losses, net:    
Equity securities:    
Investment gains and losses on securities sold, net$(1)$7 $(3)$4 
Unrealized gains and losses on securities still held, net481 142 411 747 
Subtotal480 149 408 751 
Fixed-maturity securities:    
Gross realized gains1 4 1 4 
Gross realized losses— (6)— (7)
Change in allowance for credit losses, net(13)(16)(15)(25)
Subtotal(12)(18)(14)(28)
Other5 6 12 26 
Total$473 $137 $406 $749 
 
The fair value of our equity portfolio was $11.649 billion and $11.185 billion at June 30, 2025, and December 31, 2024, respectively. Microsoft Corporation (Nasdaq:MSFT) and Apple Inc. (Nasdaq:AAPL), equity holdings, were our largest single investment holdings with fair values of $903 million and $891 million, which were 8.0% and 8.2% of our publicly traded common equities portfolio and 3.1% and 3.2% of the total investment portfolio at June 30, 2025, and December 31, 2024, respectively.

The allowance for credit losses on fixed-maturity securities was $47 million and $33 million at June 30, 2025, and December 31, 2024, respectively. Reductions in the allowance for credit losses for securities sold were $1 million for both the three and six months ended June 30, 2025.

There were 3,537 and 3,723 fixed-maturity and short-term investments in a total unrealized loss position of $582 million and $631 million at June 30, 2025, and December 31, 2024, respectively. Of those totals, 48 and 19 fixed-maturity securities had fair values below 70% of amortized cost at June 30, 2025, and December 31, 2024, respectively.