v3.25.2
Benefit Plans
 6 Months Ended
Jun. 30, 2025
Retirement Benefits [Abstract]  
Benefit Plans
Note 13Benefit Plans
Components of net cost (benefit) for pension and other postretirement plans
Three months ended June 30,Six months ended June 30,
($ in millions)2025202420252024
Pension benefits
Service cost (1)
$26 $(7)$51 $26 
Interest cost59 58 119 116 
Expected return on plan assets(78)(76)(156)(153)
Costs and expenses7 (25)14 (11)
Remeasurement of projected benefit obligation55 (68)108 (93)
Remeasurement of plan assets(54)60 (31)85 
Remeasurement (gains) losses1 (8)77 (8)
Pension net cost (benefit)$8 $(33)$91 $(19)
Postretirement benefits
Service cost$— $— $— $— 
Interest cost2 3 4 5 
Amortization of prior service credit— (1)— (1)
Costs and expenses2 2 4 4 
Remeasurement of benefit obligation
(1)(1)1 (3)
Remeasurement of plan assets— — — — 
Remeasurement (gains) losses(1)(1)1 (3)
Postretirement net cost$1 $1 $5 $1 
Pension and postretirement benefits
Costs and expenses$9 $(23)$18 $(7)
Remeasurement (gains) losses— (9)78 (11)
Total net cost (benefit)$9 $(32)$96 $(18)
(1)    For the second quarter and first six months of 2024, service cost includes a $38 million refund of premiums previously paid to the Pension Benefit Guaranty Corporation.
Differences in actual experience and changes in other assumptions affect our pension and other postretirement obligations and expenses. Differences between expected and actual returns on plan assets affect remeasurement (gains) losses.
Pension and other postretirement service cost, interest cost, expected return on plan assets and amortization of prior service credit are reported in property and casualty insurance claims and claims expense, operating costs and expenses, net investment income and (if applicable) restructuring and related charges on the Condensed Consolidated Statements of Operations.
Pension and postretirement benefits remeasurement gains and losses
Three months ended June 30,Six months ended June 30,
($ in millions)2025202420252024
Remeasurement of benefit obligation (gains) losses:
Discount rate$5 $(57)$64 $(98)
Other assumptions49 (12)45 2 
Remeasurement of plan assets (gains) losses(54)60 (31)85 
Remeasurement (gains) losses$— $(9)$78 $(11)
Remeasurement losses were zero for the second quarter of 2025, as favorable asset performance compared to expected return on plan assets was offset by changes in actuarial assumptions and the liability discount rate. Remeasurement losses of $78 million in the first six months of 2025, are primarily related to a decrease in the liability discount rate and changes in actuarial assumptions partially offset by favorable asset performance compared to expected return on plan assets.
The weighted average discount rate used to measure the pension benefit obligation decreased to 5.51% on June 30, 2025 compared to 5.54% on March 31, 2025 and 5.71% at December 31, 2024 resulting in losses for the second quarter and first six months of 2025.
For the second quarter of 2025, the actual return on plan assets was higher than the expected return due to higher public equity valuations, partially offset by lower performance-based equity valuations and lower fixed income valuations. For the first six months
of 2025, the actual return on plan assets was higher than the expected return due to higher public equity valuations and higher fixed income valuations driven by lower rates, partially offset by lower performance-based equity valuations.