v3.25.2
INVESTMENTS (Tables)
 6 Months Ended
Jun. 30, 2025
Available-for-Sale Debt Securities
The amortized cost and allowance for credit losses for the Company's investments in fixed maturity securities and the fair values of these investments as well as the fair value of the Company's investments in equity securities are shown in the following tables.
  
June 30, 2025
(In millions)Amortized
Cost		Allowance
for Credit
Losses		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
Securities available-for-sale, carried at fair
  value through other comprehensive income:
Fixed maturity securities:
  Yen-denominated:
Japan government and agencies$20,289 $0 $174 $2,935 $17,528 
Municipalities950 0 49 118 881 
Mortgage- and asset-backed securities338 0 3 30 311 
Public utilities2,861 0 165 183 2,843 
Sovereign and supranational359 0 9 11 357 
Banks/financial institutions5,771 0 214 420 5,565 
Other corporate5,755 0 445 438 5,762 
Total yen-denominated36,323 0 1,059 4,135 33,247 
  U.S. dollar-denominated:
U.S. government and agencies226 0 1 2 225 
Municipalities1,212 0 66 85 1,193 
Mortgage- and asset-backed securities4,065 0 171 69 4,167 
Public utilities4,378 0 350 155 4,573 
Sovereign and supranational58 0 20 0 78 
Banks/financial institutions3,930 0 371 39 4,262 
Other corporate19,708 0 2,031 738 21,001 
Total U.S. dollar-denominated33,577 0 3,010 1,088 35,499 
Other currencies:
Mortgage- and asset-backed securities47 0 1 0 48 
Public utilities57 0 1 0 58 
Other corporate
26 0 1 0 27 
Total other currencies
130 0 3 0 133 
Total securities available-for-sale$70,030 $0 $4,072 $5,223 $68,879 
  
December 31, 2024
(In millions)Amortized
Cost		Allowance
for Credit
Losses		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
Securities available-for-sale, carried at fair
  value through other comprehensive income:
Fixed maturity securities:
  Yen-denominated:
Japan government and agencies$19,409 $0 $465 $2,234 $17,640 
Municipalities869 0 65 79 855 
Mortgage- and asset-backed securities327 0 4 23 308 
Public utilities2,746 0 202 108 2,840 
Sovereign and supranational330 0 16 8 338 
Banks/financial institutions5,376 0 267 342 5,301 
Other corporate5,329 0 568 305 5,592 
Total yen-denominated34,386 0 1,587 3,099 32,874 
  U.S. dollar-denominated:
U.S. government and agencies208 0 1 3 206 
Municipalities1,167 0 65 53 1,179 
Mortgage- and asset-backed securities2,987 0 302 34 3,255 
Public utilities3,938 0 418 151 4,205 
Sovereign and supranational57 0 21 0 78 
Banks/financial institutions3,271 0 420 36 3,655 
Other corporate18,050 0 2,493 752 19,791 
Total U.S. dollar-denominated29,678 0 3,720 1,029 32,369 
Other currencies:
Other corporate25 0 1 0 26 
Total other currencies25 0 1 0 26 
Total securities available-for-sale$64,089 $0 $5,308 $4,128 $65,269 
Held-to-maturity Securities
  
June 30, 2025
(In millions)Amortized
Cost		Allowance
for Credit
Losses		Net
Carrying
Amount		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
Securities held-to-maturity, carried at
  amortized cost:
Fixed maturity securities:
  Yen-denominated:
Japan government and agencies$16,720 $2 $16,718 $414 $272 $16,860 
Municipalities255 0 255 10 0 265 
Public utilities35 0 35 0 1 34 
Sovereign and supranational412 3 409 21 0 430 
Other corporate17 0 17 1 0 18 
Total yen-denominated17,439 5 17,434 446 273 17,607 
Total securities held-to-maturity$17,439 $5 $17,434 $446 $273 $17,607 
  
December 31, 2024
(In millions)Amortized
Cost		Allowance
for Credit
Losses		Net
Carrying
Amount		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
Securities held-to-maturity, carried at
  amortized cost:
Fixed maturity securities:
  Yen-denominated:
Japan government and agencies$15,311 $2 $15,309 $759 $9 $16,059 
Municipalities235 0 235 22 0 257 
Public utilities32 0 32 1 0 33 
Sovereign and supranational377 3 374 31 0 405 
Other corporate16 0 16 2 0 18 
Total yen-denominated15,971 5 15,966 815 9 16,772 
Total securities held-to-maturity$15,971 $5 $15,966 $815 $9 $16,772 
Equity securities, FV-NI
June 30,
2025		December 31,
2024
(In millions)Fair ValueFair Value
Equity securities, carried at fair value through net earnings:
Equity securities:
Yen-denominated$538 $484 
U.S. dollar-denominated344 312 
Total equity securities$882 $796 
Investments Classified by Contractual Maturity Date
The contractual and economic maturities of the Company's investments in fixed maturity securities at June 30, 2025, were as follows:
(In millions)
Amortized
Cost (1)
Fair
Value
Available-for-sale:
Due in one year or less$1,382 $1,481 
Due after one year through five years8,612 9,422 
Due after five years through 10 years16,665 17,423 
Due after 10 years38,921 36,027 
Mortgage- and asset-backed securities4,450 4,526 
Total fixed maturity securities available-for-sale$70,030 $68,879 
Held-to-maturity:
Due in one year or less$35 $35 
Due after one year through five years45 46 
Due after five years through 10 years9,256 9,647 
Due after 10 years8,098 7,879 
Total fixed maturity securities held-to-maturity$17,434 $17,607 
(1) Net of allowance for credit losses
Investment Exposures Exceeding Ten Percent Shareholders Equity
Investment exposures that individually exceeded 10% of shareholders' equity were as follows:
June 30, 2025December 31, 2024
(In millions)Credit
Rating		Amortized
Cost		Fair
Value		Credit
Rating		Amortized
Cost		Fair
Value
Japan National Government(1)
A+$36,029$33,508A+$33,822$32,844
(1) Japan Government Bonds (JGBs) or JGB-backed securities
Gain (Loss) on Investments
Information regarding pretax net gains and losses from investments is as follows:
  
Three Months Ended June 30,Six Months Ended June 30,
(In millions)2025202420252024
Net investment gains (losses):
Sales and redemptions:
Fixed maturity securities available-for-sale:
Gross gains from sales$5 $6 $119 $40 
Gross losses from sales(98)(27)(333)(309)
Foreign currency gains (losses)79 71 240 487 
Other investments:
Gross gains (losses) from sales and redemptions11 5 12 10 
Total sales and redemptions(3)55 38 228 
Equity securities98 

11 37 87 
Real estate owned impairments(6)0 (6)0 
Credit losses:
Fixed maturity securities held-to-maturity0 0 0 0 
Commercial mortgage and other loans(61)(21)(114)(28)
Loan commitments2 2 0 3 
Reinsurance recoverables and other1 0 1 5 
Total credit losses(58)(19)(113)(20)
Derivatives and other:
Derivative gains (losses)23 (275)(22)(490)
Foreign currency gains (losses)(475)924 (1,318)1,842 
Total derivatives and other(452)649 (1,340)1,352 
Total net investment gains (losses)$(421)$696 $(1,384)$1,647 
Net Effect on Shareholders' Equity of Unrealized Gains and Losses from Investment Securities
The net effect on shareholders’ equity of unrealized gains and losses from fixed maturity securities was as follows:
(In millions)June 30,
2025		December 31,
2024
Unrealized gains (losses) on securities available-for-sale$(1,151)$1,180 
Deferred income taxes(677)(1,156)
Shareholders’ equity, unrealized gains (losses) on fixed maturity securities$(1,828)$24 
Investments Gross Unrealized Loss Aging
The following tables show the fair values and gross unrealized losses of the Company's available-for-sale investments for the periods ended June 30, 2025 and December 31, 2024, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.
  
June 30, 2025
  
TotalLess than 12 months12 months or longer
(In millions)Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
Fixed maturity securities available-
   for-sale:
U.S. government and
    agencies:
U.S. dollar-denominated$108 $2 $73 $0 $35 $2 
Japan government and
    agencies:
Yen-denominated11,469 2,935 5,838 288 5,631 2,647 
Municipalities:
U.S. dollar-denominated650 85 88 5 562 80 
Yen-denominated341 118 88 9 253 109 
Mortgage- and asset-
    backed securities:
U.S. dollar-denominated1,578 69 1,182 41 396 28 
Yen-denominated214 30 23 0 191 30 
Public utilities:
U.S. dollar-denominated1,911 155 1,045 30 866 125 
Yen-denominated1,048 183 211 10 837 173 
Sovereign and supranational:
Yen-denominated48 11 0 0 48 11 
Banks/financial institutions:
U.S. dollar-denominated1,065 39 890 16 175 23 
Yen-denominated3,759 420 655 16 3,104 404 
Other corporate:
U.S. dollar-denominated7,675 738 3,823 105 3,852 633 
Yen-denominated 2,190 438 566 34 1,624 404 
Total$32,056 $5,223 $14,482 $554 $17,574 $4,669 
  
December 31, 2024
  
TotalLess than 12 months12 months or longer
(In millions)Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
Fixed maturity securities available-
   for-sale:
U.S. government and
    agencies:
U.S. dollar-denominated$106 $3 $59 $1 $47 $2 
Japan government and
    agencies:
Yen-denominated8,136 2,234 2,070 57 6,066 2,177 
Municipalities:
U.S. dollar-denominated666 53 67 3 599 50 
Yen-denominated341 79 96 2 245 77 
Mortgage- and asset-
    backed securities:
U.S. dollar-denominated567 34 173 2 394 32 
Yen-denominated196 23 12 0 184 23 
Public utilities:
U.S. dollar-denominated1,570 151 699 19 871 132 
Yen-denominated1,020 108 368 11 652 97 
Sovereign and supranational:
Yen-denominated47 8 0 0 47 8 
Banks/financial institutions:
U.S. dollar-denominated625 36 376 7 249 29 
Yen-denominated3,197 342 471 22 2,726 320 
Other corporate:
U.S. dollar-denominated6,097 752 2,036 59 4,061 693 
Yen-denominated1,733 305 289 14 1,444 291 
Total$24,301 $4,128 $6,716 $197 $17,585 $3,931 
Composition of the Carrying Value for Commercial Mortgage and Other Loans by Property Type
The following table reflects the composition of the carrying value for commercial mortgage and other loans by property type as of the periods presented.
June 30, 2025December 31, 2024
(In millions)Amortized
Cost		% of
Total		Amortized
Cost		% of
Total
Commercial Mortgage and other loans:
Transitional real estate loans:
Office$1,246 11.7 %$1,361 12.1 %
Retail314 2.9 349 3.1 
Apartments/Multi-Family1,881 17.7 2,201 19.6 
Industrial100 .9 117 1.1 
Hospitality525 4.9 556 5.0 
Other292 2.7 318 2.8 
Total transitional real estate loans4,358 40.8 4,902 43.7 
Commercial mortgage loans:
Office294 2.8 300 2.7 
Retail210 2.0 214 1.9 
Apartments/Multi-Family559 5.3 572 5.1 
Industrial413 3.9 436 3.9 
Other14 .1 15 .1 
Total commercial mortgage loans1,490 14.1 1,537 13.7 
Middle market loans4,355 40.9 4,423 39.4 
Other loans445 4.2 362 3.2 
Total commercial mortgage and other loans$10,648 100.0 %$11,224 100.0 %
Allowance for credit losses(384)(355)
Total net commercial mortgage and other loans$10,264 $10,869 
Financing Receivable Nonaccrual
The following tables present an aging of past due and nonaccrual loans at amortized cost, before allowance for credit losses, as of the periods presented.
June 30, 2025
(In millions)Current Less Than
90 Days
Past Due
90 Days
or More
 Past Due(1)
Total Past
Due		Total
Loans		Nonaccrual
Status
Transitional real estate loans$3,808 $142 $408 $550 $4,358 $408 
Commercial mortgage loans1,490 0 0 0 1,490 0 
Middle market loans4,273 23 59 82 4,355 59 
Other loans445 0 0 0 445 0 
Total$10,016 $165 $467 $632 $10,648 $467 
(1) As of June 30, 2025, there were no loans that were 90 days or more past due that continued to accrue interest.

December 31, 2024
(In millions)Current Less Than
90 Days
Past Due
90 Days
or More
 Past Due(1)
Total Past
Due		Total
Loans		Nonaccrual
Status
Transitional real estate loans$4,364 $195 $343 $538 $4,902 $378 
Commercial mortgage loans1,537 0 0 0 1,537 0 
Middle market loans4,295 63 65 128 4,423 108 
Other loans362 0 0 0 362 0 
Total$10,558 $258 $408 $666 $11,224 $486 
(1) As of December 31, 2024, there were no loans that were 90 days or more past due that continued to accrue interest.
Effect of Loan Modifications
The following tables present the amortized cost basis of modified loans to borrowers experiencing financial difficulty and the financial effect of the modifications, disaggregated by loan classification and type of modification.
Three Months Ended
June 30, 2025
(In millions)
Amortized Cost (1)
% of TotalFinancial Effect
Transitional Real Estate Loans:
Term extension$128 3.1 %
Term extension of 22 months on average
Term extension and interest rate reduction152 3.7 
Term extension of 26 months on average and reduction in the weighted-average contractual interest rate from 4.8% to 4.3%
Middle Market Loans:
Principal forgiveness$4 .1 %
Reduction in the amortized cost basis of $0.3 million
Principal forgiveness and term
  extension		25 .6 
Reduction in the amortized cost basis of $34 million and term extension of 30 months on average
(1) Net of allowance for credit losses
Three Months Ended
June 30, 2024
(In millions)
Amortized Cost (1)
% of TotalFinancial Effect
Transitional Real Estate Loans:
Other-than-insignificant payment
  delays and interest rate
  reduction
$121 2.2 %
Delay in payments of 31 months on average and reduction in the weighted-average contractual interest rate from 8.1% to 7.8%
(1) Net of allowance for credit losses
Six Months Ended
June 30, 2025
(In millions)
Amortized Cost (1)
% of TotalFinancial Effect
Transitional Real Estate Loans:
Term extension$159 3.9 %
Term extension of 20 months on average
Term extension and interest rate reduction152 3.7 
Term extension of 26 months on average and reduction in the weighted-average contractual interest rate from 4.8% to 4.3%
Middle Market Loans:
Principal forgiveness$6 .1 %
Reduction in the amortized cost basis of $4 million
Term extension33 .8 
Term extension of six months on average
Other-than-insignificant
  payment delays		28 .7 
Delay in principal and interest payments of 35 months on average
Principal forgiveness and term
  extension		25 .6 
Reduction in the amortized cost basis of $34 million and term extension of 30 months on average
(1) Net of allowance for credit losses
Six Months Ended
June 30, 2024
(In millions)
Amortized Cost (1)
% of TotalFinancial Effect
Transitional Real Estate Loans:
Other-than-insignificant payment
  delays and interest rate
  reduction
$332 6.0 %
Delay in payments of 44 months on average and reduction in the weighted-average contractual interest rate from 8.2% to 7.3%
(1) Net of allowance for credit losses
Loan Performance After Modifications
The following table presents an aging of loans that received modifications in the 12 months preceding the period presented, at amortized cost.
June 30, 2025
(In millions)Current Less Than
90 Days
Past Due		90 Days
or More
Past Due		Nonaccrual
Status
Transitional real estate loans$592 $0 $60 $60 
Middle market loans106 1 0 0 
Total$698 $1 $60 $60 
Allowance for Loan Losses by Portfolio Segment
The following table presents the roll forward of the allowance for credit losses by portfolio segment for loans and by accounting classification for securities.
(In millions)Transitional
Real Estate
Loans		Commercial
Mortgage
Loans		Middle
Market
Loans		Other Loans
and Loan
Commitments		Held-to-
Maturity
Securities		Available-
for-Sale
Securities		Total
Three Months Ended June 30, 2025:
Balance at March 31, 2025
$(203)$(15)$(150)$(19)$(5)$0 $(392)
(Addition to) release of allowance
   for credit losses
(45)3 (19)2 0 0 (59)
Writeoffs, net of recoveries5 0 42 0 0 0 47 
Change in foreign exchange0 0 0 0 0 0 0 
Balance at June 30, 2025
$(243)$(12)$(127)$(17)$(5)$0 $(404)
Three Months Ended June 30, 2024:
Balance at March 31, 2024
$(114)$(19)$(99)$(15)$(5)$0 $(252)
(Addition to) release of allowance
   for credit losses
(24)2 1 2 0 0 (19)
Writeoffs, net of recoveries15 0 0 0 0 0 15 
Change in foreign exchange0 0 0 0 0 0 0 
Balance at June 30, 2024 (2)
$(123)$(17)$(98)$(13)$(5)$0 $(256)
Six Months Ended June 30, 2025:
Balance at December 31, 2024
$(199)$(14)$(140)$(17)$(5)$0 $(375)
(Addition to) release of allowance
   for credit losses
(73)2 (43)0 0 0 (114)
Writeoffs, net of recoveries29 0 56 0 0 0 85 
Change in foreign exchange0 0 0 0 0 0 0 
Balance at June 30, 2025
$(243)$(12)$(127)$(17)$(5)$0 $(404)
Six Months Ended June 30, 2024:
Balance at December 31, 2023
$(112)$(16)$(146)$(16)$(5)$0 $(295)
(Addition to) release of allowance
   for credit losses
(26)(1)(2)3 0 0 (26)
Writeoffs, net of recoveries15 0 50 0 0 0 65 
Change in foreign exchange0 0 0 0 0 0 0 
Balance at June 30, 2024
$(123)$(17)$(98)$(13)$(5)$0 $(256)
Other Investments
The table below reflects the composition of the carrying value for other investments as of the periods presented.
(In millions)June 30,
2025		December 31,
2024
Other investments:
Policy loans$221 $203 
Short-term investments (1)
2,375 1,599 
Limited partnerships (2)
3,745 3,435 
Real estate owned964 682 
Other40 39 
Total other investments$7,345 $5,958 
(1) Includes securities lending collateral
(2) Includes tax credit investments and asset classes such as private equity and real estate funds
Securities Lending Transactions Accounted for as Secured Borrowings
Details of collateral by loaned security type and remaining maturity of the agreements were as follows:
Securities Lending Transactions Accounted for as Secured Borrowings
Remaining Contractual Maturity of the Agreements
June 30, 2025December 31, 2024
(In millions)
Overnight
and
Continuous(1)
Up to 30
days		30-90 daysTotal
Overnight
and
Continuous(1)
Up to 30
days		Total
Securities lending
  transactions:
Fixed maturity securities:
Japan government and agencies$0 $3,837 $1,035 $4,872 $0 $1,027 $1,027 
Public utilities27 0 0 27 34 0 34 
Banks/financial institutions145 0 0 145 193 0 193 
Other corporate723 0 0 723 783 0 783 
          Total borrowings$895 $3,837 $1,035 $5,767 $1,010 $1,027 $2,037 
Gross amount of recognized liabilities for securities
   lending transactions		$5,767 $2,037 
(1) The related loaned security, under the Company's U.S. securities lending program, can be returned to the Company at the transferee's discretion; therefore, they are classified as Overnight and Continuous.
Variable Interest Entity, Consolidated  
Investments in Variable Interest Entities
The following table presents the carrying value and balance sheet caption in which the assets and liabilities of consolidated VIEs are reported.
Investments in Consolidated Variable Interest Entities
(In millions)June 30,
2025		December 31,
2024
Assets:
Fixed maturity securities, available-for-sale$3,675 $3,428 
Commercial mortgage and other loans8,207 8,693 
Other investments (1)
2,220 2,176 
Other assets (2)
45 53 
Total assets of consolidated VIEs$14,147 $14,350 
Liabilities:
Other liabilities (2)
$589 $604 
Total liabilities of consolidated VIEs$589 $604 
(1) Consists entirely of alternative investments in limited partnerships, which represent VIEs where the Company is not the primary beneficiary and, therefore, are not consolidated
(2) Consists entirely of derivatives
Variable Interest Entity, Not Consolidated  
Investments in Variable Interest Entities
VIEs - Not Consolidated
The table below reflects the carrying value and balance sheet caption in which the Company's investments in VIEs that are not consolidated are reported.
Investments in Variable Interest Entities Not Consolidated
(In millions)June 30,
2025		December 31,
2024
Assets:
Fixed maturity securities, available-for-sale$7,121 $6,243 
Other investments (1)
1,367 1,124 
Total investments in VIEs not consolidated$8,488 $7,367 
(1) Consists entirely of alternative investments in limited partnerships
Transitional real estate loans  
Financing Receivable Credit Quality Indicators
The following tables present as of June 30, 2025 the amortized cost basis of TREs, CMLs, MMLs, and other loans by year of origination and credit quality indicator.
Transitional Real Estate Loans
(In millions)20252024202320222021PriorTotal
Loan-to-Value Ratio:
0%-59.99%$0 $0 $0 $370 $391 $10 $771 
60%-69.99%0 0 77 419 442 400 1,338 
70%-79.99%0 0 14 772 625 44 1,455 
80% or greater0 0 0 186 297 311 794 
Total$0 $0 $91 $1,747 $1,755 $765 $4,358 
Current-period gross
  writeoffs:		$0 $0 $0 $5 $0 $24 $29 
Commercial mortgage loans  
Financing Receivable Credit Quality Indicators
Commercial Mortgage Loans
(In millions)20252024202320222021PriorTotalWeighted-Average DSCR
Loan-to-Value Ratio:
0%-59.99%$0 $0 $32 $0 $247 $1,010 $1,289 2.68
60%-69.99%0 0 0 0 25 53 78 2.14
70%-79.99%0 0 0 0 0 8 8 1.48
80% or greater0 12 0 0 0 103 115 0.76
Total$0 $12 $32 $0 $272 $1,174 $1,490 2.50
Weighted Average DSCR0.001.132.490.003.042.39
Current-period gross
  writeoffs:		$0 $0 $0 $0 $0 $0 $0 
Middle market loans  
Financing Receivable Credit Quality Indicators
Middle Market Loans
(In millions)20252024202320222021PriorRevolving LoansTotal
Credit Ratings:
BBB$13 $37 $30 $0 $71 $106 $11 $268 
BB233 466 37 385 349 620 77 2,167 
B46 181 46 257 460 475 31 1,496 
CCC17 5 0 9 62 194 20 307 
CC0 0 0 14 0 0 1 15 
C and lower0 0 0 0 16 80 6 102 
Total$309 $689 $113 $665 $958 $1,475 $146 $4,355 
Current-period gross
  writeoffs:		$0 $0 $0 $0 $17 $39 $0 $56 
Other loans  
Financing Receivable Credit Quality Indicators
Other Loans
(In millions)20252024202320222021PriorRevolving LoansTotal
Credit Ratings:
A$40 $0 $0 $74 $0 $0 $0 $114 
AA0 0 0 8 3 0 0 11 
BBB5 217 72 26 0 0 0 320 
BB0 0 0 0 0 0 0 0 
Total$45 $217 $72 $108 $3 $0 $0 $445 
Current-period gross
  writeoffs:		$0 $0 $0 $0 $0 $0 $0 $0