| OTHER COMPREHENSIVE INCOME (LOSS) AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table presents the changes in the Company’s accumulated other comprehensive income (loss) (AOCI) for the three months ended March 31, 2026. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Changes in Net Unrealized Gains (Losses) on Investment Securities | | | | | | | | (in millions) | | Having No Credit
Losses Recognized in
the Consolidated
Statement of Income | | Having Credit
Losses Recognized
in the Consolidated
Statement of
Income | | Net Benefit Plan Assets and
Obligations
Recognized in
Shareholders’
Equity | | Net Unrealized
Foreign Currency
Translation | | Total Accumulated
Other
Comprehensive
Income (Loss) | | | | | | | | | | | | | Balance, December 31, 2025 | | $ | (1,664) | | | $ | 186 | | | $ | (150) | | | $ | (872) | | | $ | (2,500) | | | Other comprehensive income (loss) (OCI) before reclassifications, net of tax | | (902) | | | — | | | — | | | (28) | | | (930) | | Amounts reclassified from AOCI, net of tax | | 2 | | | — | | | (6) | | | 356 | | | 352 | | | Net OCI, current period | | (900) | | | — | | | (6) | | | 328 | | | (578) | | | Balance, March 31, 2026 | | $ | (2,564) | | | $ | 186 | | | $ | (156) | | | $ | (544) | | | $ | (3,078) | |
The following table presents the pre-tax components of the Company’s other comprehensive income (loss) and the related income tax expense (benefit). | | | | | | | | | | | | | | | | | | | | | | Three Months Ended
March 31, | | | | (in millions) | | 2026 | | 2025 | | | | | | Changes in net unrealized gains (losses) on investment securities: | | | | | | | | | | Having no credit losses recognized in the consolidated statement of income | | $ | (1,146) | | | $ | 436 | | | | | | | Income tax expense (benefit) | | (246) | | | 96 | | | | | | | Net of taxes | | (900) | | | 340 | | | | | | | Having credit losses recognized in the consolidated statement of income | | — | | | 1 | | | | | | | Income tax expense (benefit) | | — | | | — | | | | | | | Net of taxes | | — | | | 1 | | | | | | | Net changes in benefit plan assets and obligations | | (8) | | | — | | | | | | | Income tax expense (benefit) | | (2) | | | — | | | | | | | Net of taxes | | (6) | | | — | | | | | | | Net changes in unrealized foreign currency translation | | 327 | | | 61 | | | | | | | Income tax expense (benefit) | | (1) | | | 3 | | | | | | | Net of taxes | | 328 | | | 58 | | | | | | | Total other comprehensive income (loss) | | (827) | | | 498 | | | | | | | Total income tax expense (benefit) | | (249) | | | 99 | | | | | | | Total other comprehensive income (loss), net of taxes | | $ | (578) | | | $ | 399 | | | | | |
The following table presents the pre-tax and related income tax (expense) benefit components of the amounts reclassified from the Company’s AOCI to the Company’s consolidated statement of income. | | | | | | | | | | | | | | | | | | | | | Three Months Ended
March 31, | | | | (in millions) | | 2026 | | 2025 | | | | | | Reclassification adjustments related to unrealized gains (losses) on investment securities: | | | | | | | | | Having no credit losses recognized in the consolidated statement of income (1) (2) | | $ | 7 | | | $ | 31 | | | | | | Income tax benefit (3) | | 5 | | | 6 | | | | | | | Net of taxes | | 2 | | | 25 | | | | | | Having credit losses recognized in the consolidated statement of income (1) | | — | | | — | | | | | | Income tax benefit (3) | | — | | | — | | | | | | | Net of taxes | | — | | | — | | | | | | Reclassification adjustment related to benefit plan assets and obligations: | | | | | | | | | Claims and claim adjustment expenses (benefit) (4) | | (1) | | | — | | | | | | General and administrative expenses (benefit) (4) | | (1) | | | — | | | | | | Other (2) | | (4) | | | — | | | | | | | Total | | (6) | | | — | | | | | | Income tax expense (3) | | — | | | — | | | | | | | Net of taxes | | (6) | | | — | | | | | | Reclassification adjustment related to foreign currency translation (1) (2) | | 356 | | | — | | | | | | Income tax benefit (3) | | — | | | — | | | | | | | Net of taxes | | 356 | | | — | | | | | | | Total reclassifications | | 357 | | | 31 | | | | | | | Total income tax benefit | | 5 | | | 6 | | | | | | | Total reclassifications, net of taxes | | $ | 352 | | | $ | 25 | | | | | |
_______________________________________________(1)(Increases) decreases in net realized investment gains (losses) on the consolidated statement of income. (2)(Increases) decreases in net realized investment gains (losses) on the consolidated statement of income related to accumulated other comprehensive income (loss), net of taxes, includes the following related to the Canadian operations divested by the Company in the first quarter of 2026: a $(16) million reclassification adjustment related to unrealized gains (losses) on investment securities, a $(4) million reclassification adjustment related to benefit plan assets and obligations and a $356 million reclassification adjustment related to foreign currency translation. (3)(Increases) decreases in income tax expense on the consolidated statement of income. (4)Increases (decreases) in respective expenses on the consolidated statement of income.
|