INVESTMENTS (Tables)

6 Months Ended

Jun. 30, 2025

Investments, Debt and Equity Securities [Abstract]

Schedule of Amortized Cost, Allowance for Credit Losses, Gross Unrealized Appreciation/(Depreciation) and Fair Value of Fixed Maturity Securities

The tables below present the amortized cost, allowance for credit losses, gross unrealized appreciation/(depreciation) (“URA(D)”) and fair value of fixed maturity securities - available for sale for the periods indicated:


	At June 30, 2025
(Dollars in millions)	Amortized Cost		Allowance for Credit Losses		Unrealized Appreciation		Unrealized Depreciation		Fair Value
Fixed maturity securities - available for sale
U.S. Treasury securities and obligations of
U.S. government agencies and corporations	$	258	$	—	$	—	$	(9)	$	249
Obligations of U.S. States and political subdivisions	57		—		—		(7)		50
Corporate securities	5,958		(39)		105		(128)		5,896
Asset-backed securities	4,758		—		18		(27)		4,749
Mortgage-backed securities
Agency commercial	208		—		3		(2)		210
Non-agency commercial	473		—		1		(27)		447
Agency residential	3,804		—		30		(126)		3,708
Non-agency residential	1,353		—		24		(3)		1,374
Foreign government securities	1,004		—		20		(31)		992
Foreign corporate securities	2,121		—		60		(60)		2,121
Total fixed maturity securities - available for sale	$	19,992	$	(40)	$	262	$	(419)	$	19,796

(Some amounts may not reconcile due to rounding.)


	At December 31, 2024
(Dollars in millions)	Amortized Cost		Allowance for Credit Losses		Unrealized Appreciation		Unrealized Depreciation		Fair Value
Fixed maturity securities - available for sale
U.S. Treasury securities and obligations of
U.S. government agencies and corporations	$	266	$	—	$	—	$	(11)	$	255
Obligations of U.S. States and political subdivisions	75		—		—		(5)		70
Corporate securities	4,156		(35)		37		(160)		3,997
Asset-backed securities	5,321		—		24		(35)		5,311
Mortgage-backed securities
Commercial	479		—		—		(38)		441
Agency residential	3,306		—		10		(166)		3,151
Non-agency residential	1,164		—		9		(11)		1,161
Foreign government securities	1,013		—		8		(52)		970
Foreign corporate securities	1,905		—		17		(91)		1,831
Total fixed maturity securities - available for sale	$	17,685	$	(36)	$	106	$	(569)	$	17,186

(Some amounts may not reconcile due to rounding.)

The following tables show amortized cost, allowance for credit losses, gross URA(D) and fair value of fixed maturity securities - held to maturity for the periods indicated:


	At June 30, 2025
(Dollars in millions)	Amortized Cost		Allowance for Credit Losses		Unrealized Appreciation		Unrealized Depreciation		Fair Value
Fixed maturity securities – held to maturity
Corporate securities	$	168	$	(2)	$	5	$	(2)	$	169
Asset-backed securities	404		(4)		5		(7)		398
Mortgage-backed securities
Commercial	7		—		—		—		7
Foreign corporate securities	79		(1)		5		—		83
Total fixed maturity securities - held to maturity	$	658	$	(7)	$	15	$	(10)	$	657

(Some amounts may not reconcile due to rounding.)


	At December 31, 2024
(Dollars in millions)	Amortized Cost		Allowance for Credit Losses		Unrealized Appreciation		Unrealized Depreciation		Fair Value
Fixed maturity securities - held to maturity
Corporate securities	$	177	$	(2)	$	5	$	(4)	$	175
Asset-backed securities	484		(4)		5		(8)		477
Mortgage-backed securities
Commercial	21		—		—		—		21
Foreign corporate securities	84		(1)		4		—		86
Total fixed maturity securities - held to maturity	$	765	$	(8)	$	14	$	(12)	$	759

(Some amounts may not reconcile due to rounding.)

Schedule of Amortized Cost and Fair Value of Fixed Maturity Securities, by Contractual Maturity

The amortized cost and fair value of fixed maturity securities - available for sale are shown in the following table by contractual maturity. As the stated maturity of such securities may not be indicative of actual maturities, the totals for mortgage-backed and asset-backed securities are shown separately.


	At June 30, 2025				At December 31, 2024
(Dollars in millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Fixed maturity securities – available for sale
Due in one year or less	$	521	$	510	$	383	$	369
Due after one year through five years	4,421		4,393		3,262		3,145
Due after five years through ten years	3,302		3,307		2,506		2,406
Due after ten years	1,154		1,098		1,264		1,202
Asset-backed securities	4,758		4,749		5,321		5,311
Mortgage-backed securities
Agency commercial	208		210		—		—
Non-agency commercial	473		447		479		441
Agency residential	3,804		3,708		3,306		3,151
Non-agency residential	1,353		1,374		1,164		1,161
Total fixed maturity securities - available for sale	$	19,992	$	19,796	$	17,685	$	17,186

(Some amounts may not reconcile due to rounding.)

The amortized cost and fair value of fixed maturity securities - held to maturity are shown in the following table by contractual maturity. As the stated maturity of such securities may not be indicative of actual maturities, the totals for mortgage-backed and asset-backed securities are shown separately.


	At June 30, 2025				At December 31, 2024
(Dollars in millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Fixed maturity securities - held to maturity
Due in one year or less	$	5	$	5	$	7	$	7
Due after one year through five years	89		89		67		67
Due after five years through ten years	4		4		37		35
Due after ten years	149		154		150		152
Asset-backed securities	404		398		484		477
Mortgage-backed securities
Commercial	7		7		21		21
Total fixed maturity securities - held to maturity	$	658	$	657	$	765	$	759

(Some amounts may not reconcile due to rounding.)

Schedule of Changes in Net Unrealized Appreciation (Depreciation) for Investments

The changes in net URA(D) for the Company’s investments are as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in millions)	2025		2024		2025		2024
Increase (decrease) during the period between the fair value and cost of
investments carried at fair value, and deferred taxes thereon:
Fixed maturity securities - available for sale, held to maturity and short-term investments	$	111	$	(32)	$	310	$	(106)
Change in URA(D), pre-tax	111		(32)		310		(106)
Deferred tax benefit (expense)	(23)		7		(65)		22
Change in URA(D), net of deferred taxes, included in stockholders' equity	$	88	$	(25)	$	245	$	(84)

(Some amounts may not reconcile due to rounding.)

Schedule of Aggregate Fair Value and Gross Unrealized Depreciation of Fixed Maturity Securities - Available for Sale, by Security Type

The tables below display the aggregate fair value and gross unrealized depreciation of fixed maturity securities - available for sale by security type and contractual maturity, in each case subdivided according to length of time that the individual securities had been in a continuous unrealized loss position for the periods indicated:


	Duration of Unrealized Loss at June 30, 2025 By Security Type
	Less than 12 months				Greater than 12 months				Total
(Dollars in millions)	Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation
Fixed maturity securities - available for sale
U.S. Treasury securities and obligations of
U.S. government agencies and corporations	$	74	$	(4)	$	163	$	(4)	$	237	$	(9)
Obligations of U.S. States and political subdivisions	10		(1)		37		(6)		47		(7)
Corporate securities	765		(32)		1,075		(91)		1,841		(123)
Asset-backed securities	702		(20)		201		(7)		903		(27)
Mortgage-backed securities
Agency commercial	18		—		18		(2)		35		(2)
Non-agency commercial	6		—		413		(27)		419		(27)
Agency residential	760		(13)		862		(113)		1,623		(126)
Non-agency residential	219		(3)		5		—		224		(3)
Foreign government securities	147		(2)		293		(29)		439		(31)
Foreign corporate securities	351		(9)		530		(51)		881		(60)
Total	3,052		(84)		3,598		(330)		6,650		(414)
Securities where an allowance for credit loss was recorded	36		(5)		16		—		52		(5)
Total fixed maturity securities - available for sale	$	3,088	$	(89)	$	3,614	$	(330)	$	6,701	$	(419)

(Some amounts may not reconcile due to rounding.)

The tables below display the aggregate fair value and gross unrealized depreciation of fixed maturity securities - available for sale, by security type and contractual maturity, in each case subdivided according to length of time that individual securities had been in a continuous unrealized loss position for the periods indicated:


	Duration of Unrealized Loss at December 31, 2024 By Security Type
	Less than 12 months				Greater than 12 months				Total
(Dollars in millions)	Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation
Fixed maturity securities - available for sale
U.S. Treasury securities and obligations of
U.S. government agencies and corporations	$	43	$	(1)	$	187	$	(10)	$	230	$	(11)
Obligations of U.S. States and political subdivisions	9		—		40		(5)		48		(5)
Corporate securities	1,502		(42)		1,169		(116)		2,670		(160)
Asset-backed securities	843		(17)		501		(18)		1,344		(35)
Mortgage-backed securities
Commercial	6		—		408		(38)		415		(38)
Agency residential	1,784		(70)		583		(95)		2,367		(166)
Non-agency residential	650		(11)		24		—		674		(11)
Foreign government securities	298		(11)		376		(41)		674		(52)
Foreign corporate securities	689		(18)		569		(72)		1,258		(91)
Total	$	5,823	$	(171)	$	3,856	$	(397)	$	9,680	$	(567)
Securities where an allowance for credit loss was recorded	17		(1)		—		—		17		(1)
Total fixed maturity securities - available for sale	$	5,841	$	(172)	$	3,856	$	(397)	$	9,697	$	(569)

(Some amounts may not reconcile due to rounding.)

Schedule of Aggregate Fair Value and Gross Unrealized Depreciation of Fixed Maturity Securities - Available for Sale, by Contractual Maturity


	Duration of Unrealized Loss at June 30, 2025 By Maturity
	Less than 12 months				Greater than 12 months				Total
(Dollars in millions)	Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation
Fixed maturity securities - available for sale
Due in one year or less	$	48	$	(1)	$	274	$	(10)	$	322	$	(11)
Due in one year through five years	569		(14)		1,158		(78)		1,727		(91)
Due in five years through ten years	400		(6)		426		(60)		826		(66)
Due after ten years	330		(27)		242		(34)		571		(61)
Asset-backed securities	702		(20)		201		(7)		903		(27)
Mortgage-backed securities	1,003		(16)		1,298		(141)		2,302		(158)
Total	3,052		(84)		3,598		(330)		6,650		(414)
Securities where an allowance for credit loss was recorded	36		(5)		16		—		52		(5)
Total fixed maturity securities - available for sale	$	3,088	$	(89)	$	3,614	$	(330)	$	6,701	$	(419)

(Some amounts may not reconcile due to rounding.)


	Duration of Unrealized Loss at December 31, 2024 By Maturity
	Less than 12 months				Greater than 12 months				Total
(Dollars in millions)	Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation
Fixed maturity securities - available for sale
Due in one year or less	$	53	$	(2)	$	166	$	(11)	$	219	$	(13)
Due in one year through five years	895		(22)		1,313		(107)		2,209		(129)
Due in five years through ten years	1,127		(23)		572		(92)		1,699		(115)
Due after ten years	465		(26)		289		(35)		754		(61)
Asset-backed securities	843		(17)		501		(18)		1,344		(35)
Mortgage-backed securities	2,441		(81)		1,015		(134)		3,455		(215)
Total	$	5,823	$	(171)	$	3,856	$	(397)	$	9,680	$	(567)
Securities where an allowance for credit loss was recorded	17		(1)		—		—		17		(1)
Total fixed maturity securities - available for sale	$	5,841	$	(172)	$	3,856	$	(397)	$	9,697	$	(569)

(Some amounts may not reconcile due to rounding.)

Schedule of Components of Net Investment Income

The components of net investment income are presented in the table below for the periods indicated:


	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in millions)	2025		2024		2025		2024
Fixed maturities	$	267	$	255	$	532	$	500
Equity securities	1		1		2		2
Short-term investments and cash	15		22		43		44
Other invested assets
Limited partnerships	8		44		(1)		68
Dividends from preferred shares of affiliate	8		8		16		16
Other	22		30		52		50
Gross investment income before adjustments	321		360		643		679
Funds held interest income (expense)	1		1		5		5

Gross investment income	322		361		648		684
Investment expenses	8		13		15		24
Net investment income	$	314	$	348	$	633	$	660

(Some amounts may not reconcile due to rounding.)

Schedule of Components of Net Gains (Losses) on Investments

The components of net gains (losses) on investments are presented in the table below for the periods indicated:


	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in millions)	2025		2024		2025		2024
Fixed maturity securities
Allowance for credit losses	$	(2)	$	4	$	(2)	$	5
Net realized gains (losses) from dispositions	—		(15)		(2)		(20)
Equity securities, fair value
Net realized gains (losses) from dispositions	—		—		—		1
Gains (losses) from fair value adjustments	4		(2)		3		(3)

Other invested assets, fair value
Gains (losses) from fair value adjustments	(4)		(16)		95		(19)

Total net gains (losses) on investments	$	(2)	$	(30)	$	93	$	(37)

(Some amounts may not reconcile due to rounding.)

Schedule of Fixed Maturities, Allowance for Credit Loss, Available-for-Sale Rollforward

The following tables provide a roll forward of the Company’s beginning and ending balance of allowance for credit losses for the periods indicated:


	Roll Forward of Allowance for Credit Losses – Fixed Maturities - Available for Sale
	Three Months Ended June 30, 2025						Six Months Ended June 30, 2025
	Corporate Securities		Asset Backed Securities		Foreign Corporate Securities		Total		Corporate Securities		Asset Backed Securities		Foreign Corporate Securities		Total
(Dollars in millions)
Beginning balance	$	(36)	$	—	$	—	$	(37)	$	(35)	$	—	$	—	$	(36)
Credit losses on securities where credit
losses were not previously recorded	(3)		—		—		(3)		(4)		—		—		(4)
Increases in allowance on previously
impaired securities	—		—		—		—		—		—		—		—
Decreases in allowance on previously
impaired securities	—		—		—		—		—		—		—		—
Reduction in allowance due to disposals	—		—		—		—		—		—		—		—
Balance, end of period	$	(39)	$	—	$	—	$	(40)	$	(39)	$	—	$	—	$	(40)

(Some amounts may not reconcile due to rounding.)


	Roll Forward of Allowance for Credit Losses – Fixed Maturities - Available for Sale
	Three Months Ended June 30, 2024						Six Months Ended June 30, 2024
(Dollars in millions)	Corporate Securities		Asset Backed Securities		Foreign Corporate Securities		Total		Corporate Securities		Asset Backed Securities		Foreign Corporate Securities		Total
Beginning balance	$	(45)	$	—	$	—	$	(46)	$	(47)	$	—	$	—	$	(48)
Credit losses on securities where credit
losses were not previously recorded	—		—		—		—		—		—		—		—
Increases in allowance on previously
impaired securities	—		—		—		—		—		—		—		—
Decreases in allowance on previously
impaired securities	—		—		—		—		—		—		—		—
Reduction in allowance due to disposals	3		—		—		4		5		—		—		5
Balance, end of period	$	(42)	$	—	$	—	$	(42)	$	(42)	$	—	$	—	$	(42)

(Some amounts may not reconcile due to rounding.)

Schedule of Fixed Maturities, Allowance for Credit Loss, Held-to-Maturity Rollforward


	Roll Forward of Allowance for Credit Losses – Fixed Maturities - Held to Maturity
	Three Months Ended June 30, 2025								Six Months Ended June 30, 2025
	Corporate Securities		Asset Backed Securities		Foreign Corporate Securities		Total		Corporate Securities		Asset Backed Securities		Foreign Corporate Securities		Total
(Dollars in millions)
Beginning balance	$	(2)	$	(4)	$	(1)	$	(8)	$	(2)	$	(4)	$	(1)	$	(8)
Credit losses on securities where credit
losses were not previously recorded	—		—		—		—		—		—		—		—
Increases in allowance on previously
impaired securities	—		—		—		—		—		—		—		—
Decreases in allowance on previously
impaired securities	—		—		—		—		—		—		—		—
Reduction in allowance due to disposals	—		—		1		1		—		1		1		1
Balance, end of period	$	(2)	$	(4)	$	(1)	$	(7)	$	(2)	$	(4)	$	(1)	$	(7)

(Some amounts may not reconcile due to rounding.)


	Roll Forward of Allowance for Credit Losses – Fixed Maturities - Held to Maturity
	Three Months Ended June 30, 2024								Six Months Ended June 30, 2024
(Dollars in millions)	Corporate Securities		Asset Backed Securities		Foreign Corporate Securities		Total		Corporate Securities		Asset Backed Securities		Foreign Corporate Securities		Total
Beginning balance	$	(2)	$	(5)	$	(1)	$	(9)	$	(2)	$	(5)	$	(1)	$	(8)
Credit losses on securities where credit
losses were not previously recorded	—		—		1		1		—		—		—		—
Increases in allowance on previously
impaired securities	—		—		—		—		—		—		—		—
Decreases in allowance on previously
impaired securities	—		—		—		—		—		—		—		—
Reduction in allowance due to disposals	—		—		—		—		—		—		—		—
Balance, end of period	$	(2)	$	(5)	$	(1)	$	(8)	$	(2)	$	(5)	$	(1)	$	(8)

(Some amounts may not reconcile due to rounding.)

Schedule of Gross Gains (Losses) from Dispositions of Fixed Maturity and Equity Securities

The proceeds and split between gross gains and losses from sales of fixed maturity securities - available for sale, fixed maturity securities - held to maturity and equity securities are presented in the table below for the periods indicated:


	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in millions)	2025		2024		2025		2024
Proceeds from sales of fixed maturity securities - available for sale	$	68	$	303	$	142	$	649
Gross gains from dispositions	4		5		6		13
Gross losses from dispositions	(5)		(20)		(8)		(33)

Proceeds from sales of fixed maturity securities - held to maturity	—		—		10		—
Gross gains from sales	—		—		—		—
Gross losses from sales	—		—		(1)		—

Proceeds from sales of equity securities	$	2	$	13	$	2	$	13
Gross gains from dispositions	—		1		—		2
Gross losses from dispositions	—		—		—		—

(Some amounts may not reconcile due to rounding.)