v3.25.2
Investments
 6 Months Ended
Jun. 30, 2025
Investments, Debt and Equity Securities [Abstract]  
Investments INVESTMENTS
The following tables present the composition of our investment portfolio by major security type:
($ in millions)CostGross
Unrealized
Gains		Gross
Unrealized
Losses		Net
Holding
Period
Gains
(Losses)		Fair
Value		% of
Total
Fair
Value
June 30, 2025
Available-for-sale securities:
Fixed maturities:
U.S. government obligations$46,684 $598 $(472)$0 $46,810 52.8 %
State and local government obligations3,030 12 (78)0 2,964 3.3 
Foreign government obligations17 0 0 0 17 0 
Corporate and other debt securities18,004 222 (112)8 18,122 20.5 
Residential mortgage-backed securities2,644 21 (7)2 2,660 3.0 
Commercial mortgage-backed securities5,325 10 (286)0 5,049 5.7 
Other asset-backed securities6,668 26 (44)0 6,650 7.5 
Total fixed maturities82,372 889 (999)10 82,272 92.8 
Short-term investments2,103 0 0 0 2,103 2.4 
Total available-for-sale securities84,475 889 (999)10 84,375 95.2 
Equity securities:
Nonredeemable preferred stocks517 0 0 (17)500 0.6 
Common equities775 0 0 2,960 3,735 4.2 
Total equity securities1,292 0 0 2,943 4,235 4.8 
Total portfolio1
$85,767 $889 $(999)$2,953 $88,610 100.0 %
($ in millions)CostGross
Unrealized
Gains		Gross
Unrealized
Losses		Net
Holding
Period
Gains
(Losses)		Fair
Value		% of
Total
Fair
Value
June 30, 2024
Available-for-sale securities:
Fixed maturities:
U.S. government obligations$42,063 $60 $(1,229)$0 $40,894 56.5 %
State and local government obligations2,345 1 (144)0 2,202 3.0 
Foreign government obligations17 0 (1)0 16 0.1 
Corporate and other debt securities13,439 33 (306)(20)13,146 18.1 
Residential mortgage-backed securities981 2 (9)2 976 1.3 
Commercial mortgage-backed securities4,457 2 (489)0 3,970 5.5 
Other asset-backed securities6,366 8 (89)0 6,285 8.7 
Total fixed maturities69,668 106 (2,267)(18)67,489 93.2 
Short-term investments733 0 0 0 733 1.0 
Total available-for-sale securities70,401 106 (2,267)(18)68,222 94.2 
Equity securities:
Nonredeemable preferred stocks887 0 0 (49)838 1.2 
Common equities708 0 0 2,588 3,296 4.6 
Total equity securities1,595 0 0 2,539 4,134 5.8 
Total portfolio1
$71,996 $106 $(2,267)$2,521 $72,356 100.0 %
($ in millions)CostGross
Unrealized
Gains		Gross
Unrealized
Losses		Net
Holding
Period
Gains
(Losses)		Fair
Value		% of
Total
Fair
Value
December 31, 2024
Available-for-sale securities:
Fixed maturities:
U.S. government obligations$47,103 $36 $(1,151)$0 $45,988 57.3 %
State and local government obligations2,893 2 (117)0 2,778 3.5 
Foreign government obligations16 0 0 0 16 0 
Corporate and other debt securities14,111 65 (215)(7)13,954 17.4 
Residential mortgage-backed securities1,600 9 (11)3 1,601 2.0 
Commercial mortgage-backed securities4,721 7 (376)0 4,352 5.4 
Other asset-backed securities6,682 26 (65)0 6,643 8.3 
Total fixed maturities77,126 145 (1,935)(4)75,332 93.9 
Short-term investments615 0 0 0 615 0.7 
Total available-for-sale securities77,741 145 (1,935)(4)75,947 94.6 
Equity securities:
Nonredeemable preferred stocks756 0 0 (28)728 0.9 
Common equities745 0 0 2,830 3,575 4.5 
Total equity securities1,501 0 0 2,802 4,303 5.4 
Total portfolio1
$79,242 $145 $(1,935)$2,798 $80,250 100.0 %
1 At June 30, 2025 and 2024 and December 31, 2024, we had $303 million, $74 million, and $125 million, respectively, of net unsettled security transactions included in accounts payable, accrued expenses, and other liabilities on our consolidated balance sheets.
The total fair value of the portfolio at June 30, 2025 and 2024 and December 31, 2024, included $5.0 billion, $4.1 billion, and $6.2 billion, respectively, of securities held in a consolidated, non-insurance subsidiary of the holding company, net of unsettled security transactions. A portion of the investments held at December 31, 2024 were sold and proceeds were used to pay our common share dividends in January 2025; see Note 9 – Dividends for additional information.

The June 30, 2024, corporate and other debt securities in our Note 2 – Investments and Note 3 – Fair Value tables include amounts that were previously reported as redeemable preferred stocks. The reclassification was to reflect the accurate categorization based on the underlying features of these securities; see Note 2 – Investments in our 2024 Annual Report to Shareholders for further discussion.
At June 30, 2025, bonds and certificates of deposit in the principal amount of $786 million were on deposit to meet state insurance regulatory requirements. We did not hold any securities of any one issuer, excluding U.S. government obligations, with an aggregate cost or fair value exceeding 10% of total shareholders’ equity at June 30, 2025 or 2024, or December 31, 2024. At June 30, 2025, we did not hold any debt securities that were non-income producing during the preceding 12 months.
Hybrid Securities Certain securities in our fixed-maturity portfolio are accounted for as hybrid securities because they contain embedded derivatives that are not deemed to be clearly and closely related to the host investments. These securities are reported at fair value:
 June 30,
(millions)20252024December 31, 2024
Fixed Maturities:
Corporate and other debt securities$731 $610 $608 
Residential mortgage-backed securities615 273 479 
Other asset-backed securities0 5 1 
Total hybrid securities$1,346 $888 $1,088 
Since the embedded derivatives (e.g., change-in-control put option, debt-to-equity conversion, or any other feature unrelated to the credit quality or risk of default of the issuer that could impact the amount or timing of our expected future cash flows) do not have observable intrinsic values, we use the fair value option to record the changes in fair value of these securities through income as a component of net realized gains (losses).
Fixed Maturities The composition of fixed maturities by maturity at June 30, 2025, was:
(millions)CostFair Value
Less than one year$8,582 $8,547 
One to five years49,855 49,697 
Five to ten years23,657 23,747 
Ten years or greater278 281 
Total$82,372 $82,272 
Asset-backed securities are classified in the maturity distribution table based upon their projected cash flows. All other securities that do not have a single maturity date are reported based upon expected average maturity. Contractual maturities may differ from expected maturities because the issuers of the securities may have the right to call or prepay obligations.
Gross Unrealized Losses The following tables show the composition of gross unrealized losses by major security type and by the length of time that individual securities have been in a continuous unrealized loss position:
 Total No. of Sec.Total
Fair
Value		Gross
Unrealized
Losses		Less than 12 Months12 Months or Greater
($ in millions)No. of Sec.Fair
Value		Gross Unrealized
Losses		No. of Sec.Fair
 Value		Gross Unrealized
Losses
June 30, 2025
U.S. government obligations73 $10,463 $(472)9 $2,878 $(20)64 $7,585 $(452)
State and local government obligations275 1,677 (78)53 289 (1)222 1,388 (77)
Corporate and other debt securities159 3,737 (112)28 610 (6)131 3,127 (106)
Residential mortgage-backed securities29 385 (7)11 342 (2)18 43 (5)
Commercial mortgage-backed securities153 3,331 (286)16 448 (2)137 2,883 (284)
Other asset-backed securities79 1,797 (44)40 880 (2)39 917 (42)
Total fixed maturities768 $21,390 $(999)157 $5,447 $(33)611 $15,943 $(966)
 Total No. of Sec.Total
Fair
Value		Gross
Unrealized
Losses		Less than 12 Months12 Months or Greater
($ in millions)No. of Sec.Fair
Value		Gross Unrealized
Losses		No. of Sec.Fair
 Value		Gross Unrealized
Losses
June 30, 2024
U.S. government obligations117 $29,776 $(1,229)17 $12,936 $(110)100 $16,840 $(1,119)
State and local government obligations336 2,079 (144)58 411 (2)278 1,668 (142)
Foreign government obligations1 16 (1)0 0 0 1 16 (1)
Corporate and other debt securities405 9,032 (306)150 3,307 (19)255 5,725 (287)
Residential mortgage-backed securities39 308 (9)7 244 0 32 64 (9)
Commercial mortgage-backed securities183 3,883 (489)7 315 (1)176 3,568 (488)
Other asset-backed securities176 3,133 (89)62 1,447 (3)114 1,686 (86)
Total fixed maturities1,257 $48,227 $(2,267)301 $18,660 $(135)956 $29,567 $(2,132)
 Total No. of Sec.Total
Fair
Value		Gross
Unrealized
Losses		Less than 12 Months12 Months or Greater
($ in millions)No. of Sec.Fair
Value		Gross Unrealized
Losses		No. of Sec.Fair
 Value		Gross Unrealized
Losses
December 31, 2024
U.S. government obligations113 $38,782 $(1,151)39 $30,257 $(418)74 $8,525 $(733)
State and local government obligations379 2,339 (117)127 783 (6)252 1,556 (111)
Corporate and other debt securities304 7,034 (215)122 2,935 (33)182 4,099 (182)
Residential mortgage-backed securities40 428 (11)12 377 (4)28 51 (7)
Commercial mortgage-backed securities153 3,294 (376)8 264 (16)145 3,030 (360)
Other asset-backed securities84 1,907 (65)34 912 (8)50 995 (57)
Total fixed maturities1,073 $53,784 $(1,935)342 $35,528 $(485)731 $18,256 $(1,450)
A review of the securities in an unrealized loss position indicated that the issuers were current with respect to their interest obligations and that there was no evidence of deterioration of the current cash flow projections that would indicate we would not receive the remaining principal at maturity.
Allowance For Credit and Uncollectible Losses We are required to measure the amount of potential credit losses for all fixed-maturity securities in an unrealized loss position. We did not record any allowances for credit losses or any write-offs for credit losses deemed to be uncollectible during the first six months of 2025 or 2024, and did not have a material credit loss allowance balance as of June 30, 2025 and 2024, or December 31, 2024. We considered several factors and inputs related to the individual securities as part of our analysis. The methodology and significant inputs used to measure the amount of credit losses in our portfolio included:
•current performance indicators on the business model or underlying assets (e.g., delinquency rates, foreclosure rates, and default rates);
•credit support (via current levels of subordination);
•historical credit ratings; and
•updated cash flow expectations based upon these performance indicators.

We initially reviewed securities in a loss position to determine whether we intended, or if it was more likely than not that we would be required, to sell any of the securities prior to the recovery of their respective cost bases (which could be maturity). If we were more likely than not, or intended, to sell prior to a potential recovery, we would write off the unrealized loss. No unrealized loss write offs were recorded during the six months ended June 30, 2025 or 2024.


For those securities that we determined we were not likely to, or did not intend to, sell prior to a potential recovery, we performed additional analysis to determine if the loss was credit related. For securities with a potential credit-related loss, we calculated the net present value (NPV) of the cash flows expected (i.e., expected recovery value) using the current book yield for each security. The NPV was then compared to the security’s current amortized cost basis to determine if a credit loss existed. If the NPV was below the amortized cost basis, and deemed material for any specific security, or in the aggregate, a credit loss would be recognized and either a new allowance for credit losses would be recorded, or adjustments would be made to a previous allowance. All changes to new or existing allowances for credit losses are recorded to net realized gains (losses) on securities.
As of June 30, 2025 and 2024, and December 31, 2024, we believe that none of the unrealized losses on our fixed-maturity securities were related to material credit losses on any specific securities, or in the aggregate. We continue to expect all the securities in our fixed-maturity portfolio to pay their principal and interest obligations.
In addition, we reviewed our accrued investment income outstanding on those securities in an unrealized loss position at June 30, 2025 and 2024, and December 31, 2024, to determine if the accrued interest amounts were uncollectible. Based on our analysis, we believe the issuers have sufficient liquidity and capital reserves to meet their current interest, and future principal obligations and, therefore, did not write off any accrued income as uncollectible at June 30, 2025 and 2024, or December 31, 2024.
Realized Gains (Losses) The components of net realized gains (losses) for the three and six months ended June 30, were:
 Three MonthsSix Months
(millions)2025202420252024
Gross realized gains on security sales
Available-for-sale securities:
U.S. government obligations$24 $1 $77 $1 
Corporate and other debt securities2 1 3 4 
Residential mortgage-backed securities1 1 1 1 
Total available-for-sale securities27 3 81 6 
Equity securities:
Nonredeemable preferred stocks0 0 2 0 
Common equities4 0 39 12 
Total equity securities4 0 41 12 
Subtotal gross realized gains on security sales31 3 122 18 
Gross realized losses on security sales
Available-for-sale securities:
U.S. government obligations(1)(192)(78)(327)
State and local government obligations0 0 (2)0 
Corporate and other debt securities(2)(23)(3)(38)
Commercial mortgage-backed securities(6)(10)(10)(15)
Total available-for-sale securities(9)(225)(93)(380)
Equity securities:
Nonredeemable preferred stocks(3)(5)(5)(11)
Common equities0 0 (4)0 
Total equity securities(3)(5)(9)(11)
Subtotal gross realized losses on security sales(12)(230)(102)(391)
Net realized gains (losses) on security sales
Available-for-sale securities:
U.S. government obligations23 (191)(1)(326)
State and local government obligations0 0 (2)0 
Corporate and other debt securities0 (22)0 (34)
Residential mortgage-backed securities1 1 1 1 
Commercial mortgage-backed securities(6)(10)(10)(15)
Total available-for-sale securities18 (222)(12)(374)
Equity securities:
Nonredeemable preferred stocks(3)(5)(3)(11)
Common equities4 0 35 12 
Total equity securities1 (5)32 1 
Subtotal net realized gains (losses) on security sales19 (227)20 (373)
Net holding period gains (losses)
Hybrid securities11 3 14 11 
Equity securities357 97 141 391 
Subtotal net holding period gains (losses)368 100 155 402 
Total net realized gains (losses) on securities$387 $(127)$175 $29 
Realized gains (losses) on securities sold are computed using the first-in-first-out method. During the second quarter and first six months of 2025 and 2024, the majority of our security sales were U.S. Treasury Notes that were sold for duration management. We also selectively sold securities that we viewed as having less attractive risk/reward profiles during the second quarter and first six months of 2025 and 2024.
The following table reflects our holding period realized gains (losses) recognized on equity securities held at the respective quarter ends:
Three MonthsSix Months
(millions)2025202420252024
Total net gains (losses) recognized during the period on equity securities$358 $92 $173 $392 
Less: Net gains (losses) recognized on equity securities sold during the period1 (5)32 1 
Net holding period gains (losses) recognized during the period on equity securities held at period end$357 $97 $141 $391 
Net Investment Income The components of net investment income for the three and six months ended June 30, were: 
Three MonthsSix Months
(millions)2025202420252024
Available-for-sale securities:
Fixed maturities:
U.S. government obligations$422 $361 $844 $668 
State and local government obligations21 13 40 26 
Corporate and other debt securities208 137 379 262 
Residential mortgage-backed securities32 8 57 13 
Commercial mortgage-backed securities59 47 112 93 
Other asset-backed securities84 82 168 160 
Total fixed maturities826 648 1,600 1,222 
Short-term investments28 17 46 36 
Total available-for-sale securities854 665 1,646 1,258 
Equity securities:
Nonredeemable preferred stocks5 10 13 21 
Common equities12 10 26 24 
Total equity securities17 20 39 45 
Investment income871 685 1,685 1,303 
Investment expenses(9)(7)(16)(13)
Net investment income$862 $678 $1,669 $1,290 
On a year-over-year basis, investment income (interest and dividends) increased 27% and 29% for the three and six months ended June 30, 2025, respectively, compared to the same periods last year. The increases primarily reflect growth in invested assets and an increase in recurring investment book yield. The book yield increase primarily reflected investing new cash from insurance operations, and proceeds from maturing bonds, in higher coupon rate securities.