v3.25.2
Investments (Tables)
 6 Months Ended
Jun. 30, 2025
Investments [Abstract]  
Schedule of Portfolio Composition
Portfolio composition
($ in millions)June 30, 2025December 31, 2024
Fixed income securities, at fair value$54,435 $52,747 
Equity securities, at fair value2,397 4,463 
Mortgage loans, net807 784 
Limited partnership interests 9,194 9,255 
Short-term investments, at fair value9,640 4,537 
Other investments, net964 824 
Total$77,437 $72,610 
Schedule of Amortized Cost, Gross Unrealized Gains (Losses) and Fair Value for Fixed Income Securities
Amortized cost, gross unrealized gains (losses) and fair value for fixed income securities
($ in millions)Amortized cost, netGross unrealized
Fair
value
GainsLosses
June 30, 2025    
U.S. government and agencies$15,640 $86 $(14)$15,712 
Municipal7,451 29 (194)7,286 
Corporate27,849 470 (357)27,962 
Foreign government1,385 18 (12)1,391 
Asset-backed securities (“ABS”)
973 14 (4)983 
Mortgage-backed securities (“MBS”)
1,085 16 — 1,101 
Total fixed income securities$54,383 $633 $(581)$54,435 
December 31, 2024    
U.S. government and agencies$11,423 $15 $(330)$11,108 
Municipal8,985 33 (176)8,842 
Corporate30,630 272 (710)30,192 
Foreign government1,352 22 (10)1,364 
ABS1,130 19 (4)1,145 
MBS
96 — — 96 
Total fixed income securities$53,616 $361 $(1,230)$52,747 
Schedule of Maturities for Fixed Income Securities
Scheduled maturities for fixed income securities
($ in millions)June 30, 2025December 31, 2024
Amortized cost, net
Fair
value
Amortized cost, net
Fair
value
Due in one year or less$1,639 $1,625 $1,544 $1,531 
Due after one year through five years31,226 31,300 22,889 22,595 
Due after five years through ten years13,052 13,164 17,431 17,130 
Due after ten years6,408 6,262 10,526 10,250 
 52,325 52,351 52,390 51,506 
ABS and MBS
2,058 2,084 1,226 1,241 
Total$54,383 $54,435 $53,616 $52,747 
Schedule of Net Investment Income
Net investment income
($ in millions)Three months ended June 30,Six months ended June 30,
2025202420252024
Fixed income securities$602 $571 $1,210 $1,097 
Equity securities17 18 37 33 
Mortgage loans9 9 19 18 
Limited partnership interests74 103 268 302 
Short-term investments97 62 169 129 
Other investments24 25 45 46 
Investment income, before expense823 788 1,748 1,625 
Investment expense(69)(76)(140)(149)
Net investment income
$754 $712 $1,608 $1,476 
Schedule of Net Gains (Losses) on Investments and Derivatives by Asset Type
Net gains (losses) on investments and derivatives by type
($ in millions)Three months ended June 30,Six months ended June 30,
2025202420252024
Fixed income securities$(250)$(96)$(378)$(197)
Equity securities164 14 52 76 
Mortgage loans— 1 — 1 
Limited partnership interests13 (13)8 (5)
Derivatives(65)(15)(84)(23)
Other investments(6)6 (24)4 
Other (1)
— — (67)(123)
Net gains (losses) on investments and derivatives$(144)$(103)$(493)$(267)
(1)2025 is related to losses recorded for variable interests in Adirondack Insurance Exchange (“Adirondack”) and New Jersey Skylands Insurance Association (“Skylands”) (together “Reciprocal Exchanges”). 2024 is related to losses for the carrying value of the surplus notes issued by the Reciprocal Exchanges. See Note 8 for further detail.
Schedule of Net Gains (Losses) on Investments and Derivatives by Transaction Type
Net gains (losses) on investments and derivatives by transaction type
($ in millions)
Three months ended June 30,Six months ended June 30,
2025202420252024
Sales$(245)$(90)$(382)$(201)
Credit losses(4)(16)(80)(131)
Valuation change of equity investments (1)
170 18 53 88 
Valuation change and settlements of derivatives(65)(15)(84)(23)
Net gains (losses) on investments and derivatives$(144)$(103)$(493)$(267)
(1)Includes valuation change of equity securities and certain limited partnership interests where the underlying assets are predominately public equity securities.
Schedule of Gross Realized Gains (Losses) on Sales of Fixed Income Securities
Gross realized gains (losses) on sales of fixed income securities
($ in millions)Three months ended June 30,Six months ended June 30,
2025202420252024
Gross realized gains$116 $33 $187 $74 
Gross realized losses (367)(124)(565)(270)
Schedule of Net Appreciation (Decline) Recognized in Net Income
Net appreciation (decline) recognized in net income for assets that are still held
($ in millions)Three months ended June 30,Six months ended June 30,
2025202420252024
Equity securities$129 $18 $125 $78 
Limited partnership interests carried at fair value
(12)17 (29)47 
Total$117 $35 $96 $125 
Schedule of Credit Losses Recognized in Net Income
Credit losses recognized in net income
($ in millions)Three months ended June 30,Six months ended June 30,
2025202420252024
Assets
Fixed income securities:    
Corporate$1 $(5)$— $(1)
Total fixed income securities1 (5)— (1)
Mortgage loans— 1 — 1 
Limited partnership interests(4)(16)(4)(16)
Other investments
Bank loans(1)2 (9)5 
Real estate
— 2 — 2 
Other assets
— — (52)(123)
Commitments to fund line of credit, commercial mortgage loans and bank loans— — (15)1 
Total $(4)$(16)$(80)$(131)
Schedule of Unrealized Net Capital Gains and Losses Included in AOCI
Unrealized net capital gains and losses included in accumulated other comprehensive income (“AOCI”)
($ in millions)
Fair
value
Gross unrealized
Unrealized net
gains (losses)
June 30, 2025GainsLosses
Fixed income securities$54,435 $633 $(581)$52 
Short-term investments9,640 — (2)(2)
Derivative instruments— — (2)(2)
Investments classified as held for sale1 
Unrealized net capital gains and losses, pre-tax   49 
Reclassification of noncontrolling interest   — 
Deferred income taxes   (13)
Unrealized net capital gains and losses, after-tax   $36 
December 31, 2024
Fixed income securities$52,747 $361 $(1,230)$(869)
Short-term investments4,537 — (2)(2)
Derivative instruments — — (2)(2)
Investments classified as held for sale(110)
Unrealized net capital gains and losses, pre-tax   (983)
Reclassification of noncontrolling interest   3 
Deferred income taxes   209 
Unrealized net capital gains and losses, after-tax   $(771)
Schedule of Change in Unrealized Net Capital Gains (Losses)
Change in unrealized net capital gains (losses)
($ in millions)Six months ended June 30, 2025
Fixed income securities$921 
Short-term investments— 
Derivative instruments— 
Investments classified as held for sale (1)
111 
Total1,032 
Reclassification of noncontrolling interest(3)
Deferred income taxes(222)
Change in unrealized net capital gains and losses, after-tax
$807 
(1)Primarily unrealized net capital gains and losses for investments disposed of in the EVB business sale.
Schedule of Carrying Value for Limited Partnership Interests
Carrying value for limited partnership interests
($ in millions)June 30, 2025December 31, 2024
Private equity$7,578 $7,734 
Real estate1,405 1,236 
Other (1)
211 285 
Total$9,194 $9,255 
(1)Other consists of certain limited partnership interests where the underlying assets are predominately public equity and debt securities.
Schedule of Other investments by Asset Type
Other investments by asset type
($ in millions)June 30, 2025December 31, 2024
Bank loans, net$335 $201 
Real estate628 620 
Other1 3 
Total$964 $824 
Schedule of Rollforward of Credit Loss Allowance for Fixed Income Securities, Mortgage Loans and Bank Loans
Rollforward of credit loss allowance for fixed income securities
Three months ended June 30,Six months ended June 30,
($ in millions)2025202420252024
Beginning balance$(18)$(17)$(17)$(36)
Credit losses on securities for which credit losses not previously reported— (4)(1)(7)
Net (increases) decreases related to credit losses previously reported1 (1)1 3 
(Increase) decrease related to sales and other
— — — 3 
Write-offs— 3 — 18 
Ending balance$(17)$(19)$(17)$(19)
Components of credit loss allowance as of June 30
Corporate bonds(16)(18)
ABS(1)(1)
Total$(17)$(19)
Rollforward of credit loss allowance for mortgage loans
Three months ended June 30,Six months ended June 30,
($ in millions)2025202420252024
Beginning balance$(12)$(11)$(12)$(11)
Net (increases) decreases related to credit losses— 1 — 1 
Write-offs— — — — 
Ending balance
$(12)$(10)$(12)$(10)
Components of credit loss allowance as of June 30
Commercial
$(11)$(10)
Residential
(1)— 
Total
$(12)$(10)
Rollforward of credit loss allowance for bank loans
($ in millions)Three months ended June 30,Six months ended June 30,
2025202420252024
Beginning balance$(16)$(13)$(10)$(22)
Net (increases) decreases related to credit losses(1)2 (9)5 
Write-offs— — 2 6 
Ending balance
$(17)$(11)$(17)$(11)
Schedule of Gross Unrealized Losses and Fair Value by Type and Length of Time Held in a Continuous Unrealized Loss Position
Gross unrealized losses and fair value by type and length of time held in a continuous unrealized loss position (1)
($ in millions)Less than 12 months12 months or more
Total
unrealized
losses
Number
of 
issues
Fair
value
Unrealized
losses
Number
of 
issues
Fair
value
Unrealized
losses
June 30, 2025       
Fixed income securities       
U.S. government and agencies81 $1,179 $(5)56 $357 $(9)$(14)
Municipal571 3,703 (123)697 1,176 (71)(194)
Corporate366 2,456 (53)948 5,750 (304)(357)
Foreign government53 298 (4)62 47 (8)(12)
ABS40 164 (1)12 44 (3)(4)
MBS
14 6 — 68 4 — — 
Total fixed income securities1,125 $7,806 $(186)1,843 $7,378 $(395)$(581)
Investment grade fixed income securities981 $7,362 $(160)1,665 $6,524 $(350)$(510)
Below investment grade fixed income securities144 444 (26)178 854 (45)(71)
Total fixed income securities1,125 $7,806 $(186)1,843 $7,378 $(395)$(581)
December 31, 2024       
Fixed income securities       
U.S. government and agencies179 $8,520 $(256)99 $801 $(74)$(330)
Municipal990 4,889 (67)1,089 1,693 (109)(176)
Corporate943 9,178 (166)1,237 7,877 (544)(710)
Foreign government42 159 (2)73 73 (8)(10)
ABS15 76 — 15 51 (4)(4)
MBS
35 2 — 70 5 — — 
Total fixed income securities2,204 $22,824 $(491)2,583 $10,500 $(739)$(1,230)
Investment grade fixed income securities2,002 $21,846 $(473)2,367 $9,281 $(655)$(1,128)
Below investment grade fixed income securities202 978 (18)216 1,219 (84)(102)
Total fixed income securities2,204 $22,824 $(491)2,583 $10,500 $(739)$(1,230)
(1)Includes fixed income securities with fair values of $10 million and $16 million and unrealized losses of $1 million and $1 million with credit loss allowances of $1 million and $3 million as of June 30, 2025 and December 31, 2024, respectively.
Schedule of Gross Unrealized Losses by Unrealized Loss Position and Credit Quality
Gross unrealized losses by unrealized loss position and credit quality as of June 30, 2025
($ in millions)
Investment
grade
Below investment gradeTotal
Fixed income securities with unrealized loss position less than 20% of amortized cost, net (1)
$(477)$(60)$(537)
Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost, net (2)
(33)(11)(44)
Total unrealized losses$(510)$(71)$(581)
(1)Related to securities with an unrealized loss position less than 20% of amortized cost, net, the degree of which suggests that these securities do not pose a high risk of having credit losses.
(2)Evaluated based on factors such as discounted cash flows and the financial condition and near-term and long-term prospects of the issue or issuer and were determined to have adequate resources to fulfill contractual obligations.
Schedule of Mortgage Loans Amortized Cost by Debt Service Coverage Ratio Distribution and Year of Origination
Commercial mortgage loans amortized cost by debt service coverage ratio distribution and year of origination
June 30, 2025December 31, 2024
($ in millions)2020 and prior20212022202320242025TotalTotal
1.0 - 1.25$37 $— $18 $25 $46 $— $126 $137 
1.26 - 1.5056 — 24 18 — — 98 105 
Above 1.50179 164 48 76 15 — 482 493 
Amortized cost before allowance$272 $164 $90 $119 $61 $— $706 $735 
Allowance(11)(12)
Amortized cost, net$695 $723 
Schedule of Bank Loans Amortized Cost by Credit Rating and Year of Origination
Bank loans amortized cost by credit rating and year of origination
June 30, 2025December 31, 2024
($ in millions)2020 and prior20212022202320242025TotalTotal
NAIC 1 / A
$— $— $— $— $45 $111 $156 $45 
NAIC 2 / BBB — — — — 1 41 42 6 
NAIC 3 / BB— — 1 2 13 11 27 27 
NAIC 4 / B19 2 — 30 41 25 117 122 
NAIC 5-6 / CCC and below— — 1 7 1 1 10 11 
Amortized cost before allowance$19 $2 $2 $39 $101 $189 $352 $211 
Allowance(17)(10)
Amortized cost, net$335 $201