Accumulated Other Comprehensive Income

6 Months Ended

Jun. 30, 2025

Accumulated Other Comprehensive Income [Abstract]

Accumulated Other Comprehensive Income

Accumulated Other Comprehensive Income

Accumulated other comprehensive income (AOCI) includes changes in unrealized gains and losses on investments, changes in pension obligations and changes in life policy reserves, reinsurance recoverable and other as follows:


(Dollars in millions)						Three months ended June 30,
						2025																					2024
						Before tax						Income tax						Net									Before tax						Income tax						Net
Investments:
AOCI, beginning of period						$	(486)					$	(105)					$	(381)								$	(625)					$	(134)					$	(491)


OCI before investment gains and losses, net, recognized in net income						16						3						13									(93)						(21)						(72)
Investment gains and losses, net, recognized in net income						12						3						9									18						4						14
OCI						28						6						22									(75)						(17)						(58)
AOCI, end of period						$	(458)					$	(99)					$	(359)								$	(700)					$	(151)					$	(549)

Pension obligations:
AOCI, beginning of period						$	74					$	17					$	57								$	30					$	8					$	22
OCI excluding amortization recognized in net income						—						—						—									—						—						—
Amortization recognized in net income						(1)						—						(1)									1						—						1
OCI						(1)						—						(1)									1						—						1
AOCI, end of period						$	73					$	17					$	56								$	31					$	8					$	23

Life policy reserves, reinsurance recoverable and other:
AOCI, beginning of period						$	68					$	15					$	53								$	34					$	7					$	27


OCI before investment gains and losses, net, recognized in net income						1						—						1									37						8						29
Investment gains and losses, net, recognized in net income						—						—						—									—						—						—
OCI						1						—						1									37						8						29
AOCI, end of period						$	69					$	15					$	54								$	71					$	15					$	56

Summary of AOCI:
AOCI, beginning of period						$	(344)					$	(73)					$	(271)								$	(561)					$	(119)					$	(442)


Investments OCI						28						6						22									(75)						(17)						(58)
Pension obligations OCI						(1)						—						(1)									1						—						1
Life policy reserves, reinsurance recoverable and other OCI						1						—						1									37						8						29
Total OCI						28						6						22									(37)						(9)						(28)
AOCI, end of period						$	(316)					$	(67)					$	(249)								$	(598)					$	(128)					$	(470)


(Dollars in millions)						Six months ended June 30,
						2025																					2024
						Before tax						Income tax						Net									Before tax						Income tax						Net
Investments:
AOCI, beginning of period						$	(553)					$	(119)					$	(434)								$	(570)					$	(123)					$	(447)


OCI before investment gains and losses, net, recognized in net income						81						17						64									(158)						(34)						(124)
Investment gains and losses, net, recognized in net income						14						3						11									28						6						22
OCI						95						20						75									(130)						(28)						(102)
AOCI, end of period						$	(458)					$	(99)					$	(359)								$	(700)					$	(151)					$	(549)

Pension obligations:
AOCI, beginning of period						$	75					$	17					$	58								$	30					$	8					$	22
OCI excluding amortization recognized in net income						—						—						—									—						—						—
Amortization recognized in net income						(2)						—						(2)									1						—						1
OCI						(2)						—						(2)									1						—						1
AOCI, end of period						$	73					$	17					$	56								$	31					$	8					$	23

Life policy reserves, reinsurance recoverable and other:
AOCI, beginning of period						$	85					$	18					$	67								$	(13)					$	(3)					$	(10)


OCI before investment gains and losses, net, recognized in net income						(16)						(3)						(13)									84						18						66
Investment gains and losses, net, recognized in net income						—						—						—									—						—						—
OCI						(16)						(3)						(13)									84						18						66
AOCI, end of period						$	69					$	15					$	54								$	71					$	15					$	56

Summary of AOCI:
AOCI, beginning of period						$	(393)					$	(84)					$	(309)								$	(553)					$	(118)					$	(435)


Investments OCI						95						20						75									(130)						(28)						(102)
Pension obligations OCI						(2)						—						(2)									1						—						1
Life policy reserves, reinsurance recoverable and other OCI						(16)						(3)						(13)									84						18						66
Total OCI						77						17						60									(45)						(10)						(35)
AOCI, end of period						$	(316)					$	(67)					$	(249)								$	(598)					$	(128)					$	(470)

Investment gains and losses, net, and other investment gains and losses, net, are recorded in the investment gains and losses, net, line item in the condensed consolidated statements of income. Amortization of pension obligations is recorded in the insurance losses and contract holders' benefits and underwriting, acquisition and insurance expenses line items in the condensed consolidated statements of income.