Investments (Tables)

3 Months Ended

Mar. 31, 2026

The significant components of Net investment income are presented in the following table.


Three months ended March 31
(In millions)	2026		2025
Fixed maturity securities	$	543	$	522
Equity securities	(4)		6
Limited partnership investments	55		56
Mortgage loans	17		16
Short-term investments	19		19
Trading portfolio	—		1
Other	4		6
Gross investment income	634		626
Investment expense	(24)		(22)
Net investment income	$	610	$	604
Net investment income (loss) recognized due to the change in fair value of common stock held as of March 31, 2026 and 2025	$	(8)	$	(4)

Net realized investment gains (losses)

Net investment gains (losses) are presented in the following table.


Three months ended March 31
(In millions)	2026		2025
Net investment gains (losses):
Fixed maturity securities:
Gross gains	$	6	$	13
Gross losses	(20)		(22)
Net investment gains (losses) on fixed maturity securities	(14)		(9)
Equity securities	(4)		—



Net investment gains (losses)	$	(18)	$	(9)
Net investment gains (losses) recognized due to the change in fair value of non-redeemable preferred stock held as of March 31, 2026 and 2025	$	(5)	$	(2)

Components of net other than temporary impairment losses recognized in earnings by asset type

The table includes losses (gains) on securities with an intention to sell and changes in the allowance for credit losses on securities since acquisition date.


Three months ended March 31
(In millions)	2026		2025
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	8	$	7
Asset-backed	3		—
Impairment losses (gains) recognized in earnings	$	11	$	7

Summary of fixed maturity securities

The following tables present a summary of fixed maturity securities.


March 31, 2026	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Estimated Fair Value
(In millions)
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	25,624	$	482	$	1,074	$	31	$	25,001
States, municipalities and political subdivisions	9,110		255		793		—		8,572
Asset-backed:
Residential mortgage-backed	4,035		37		372		—		3,700
Commercial mortgage-backed	1,548		13		81		21		1,459
Other asset-backed	3,722		19		219		23		3,499
Total asset-backed	9,305		69		672		44		8,658
U.S. Treasury and obligations of government-sponsored enterprises	244		1		3		—		242
Foreign government	769		6		26		—		749
Redeemable preferred stock	8		—		—		—		8
Total fixed maturity securities available-for-sale	$	45,060	$	813	$	2,568	$	75	$	43,230


December 31, 2025	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Estimated Fair Value
(In millions)
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	25,484	$	682	$	881	$	28	$	25,257
States, municipalities and political subdivisions	8,870		303		742		—		8,431
Asset-backed:
Residential mortgage-backed	4,011		50		366		—		3,695
Commercial mortgage-backed	1,566		18		80		21		1,483
Other asset-backed	3,729		28		194		20		3,543
Total asset-backed	9,306		96		640		41		8,721
U.S. Treasury and obligations of government-sponsored enterprises	236		1		3		—		234
Foreign government	764		7		20		—		751
Redeemable preferred stock	8		—		—		—		8
Total fixed maturity securities available-for-sale	$	44,668	$	1,089	$	2,286	$	69	$	43,402

Debt securities, available-for-sale, unrealized loss position, fair value

The following tables present the estimated fair value and gross unrealized losses of available-for-sale fixed maturity securities in a gross unrealized loss position for which an allowance for credit loss has not been recorded, by the length of time in which the securities have continuously been in that position.


	Less than 12 Months				12 Months or Longer				Total
March 31, 2026	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
(In millions)
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	6,698	$	142	$	7,903	$	932	$	14,601	$	1,074
States, municipalities and political subdivisions	718		12		3,398		781		4,116		793
Asset-backed:
Residential mortgage-backed	365		5		1,882		367		2,247		372
Commercial mortgage-backed	126		3		825		78		951		81
Other asset-backed	819		13		1,334		206		2,153		219
Total asset-backed	1,310		21		4,041		651		5,351		672
U.S. Treasury and obligations of government-sponsored enterprises	98		2		14		1		112		3
Foreign government	285		5		236		21		521		26
Total	$	9,109	$	182	$	15,592	$	2,386	$	24,701	$	2,568


	Less than 12 Months				12 Months or Longer				Total
December 31, 2025	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
(In millions)
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	2,776	$	56	$	8,576	$	825	$	11,352	$	881
States, municipalities and political subdivisions	403		8		3,471		734		3,874		742
Asset-backed:
Residential mortgage-backed	154		1		2,002		365		2,156		366
Commercial mortgage-backed	36		2		887		78		923		80
Other asset-backed	420		9		1,432		185		1,852		194
Total asset-backed	610		12		4,321		628		4,931		640
U.S. Treasury and obligations of government-sponsored enterprises	78		2		18		1		96		3
Foreign government	131		1		260		19		391		20
Total	$	3,998	$	79	$	16,646	$	2,207	$	20,644	$	2,286

The following table presents the estimated fair value and gross unrealized losses of available-for-sale fixed maturity securities in a gross unrealized loss position for which an allowance for credit loss has not been recorded, by ratings distribution.


	March 31, 2026				December 31, 2025
(In millions)	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
U.S. Government, Government agencies and Government-sponsored enterprises	$	2,053	$	271	$	1,980	$	267
AAA	1,521		256		1,376		243
AA	4,256		678		3,827		623
A	6,408		513		5,025		440
BBB	9,446		749		7,758		639
Non-investment grade	1,017		101		678		74
Total	$	24,701	$	2,568	$	20,644	$	2,286

Debt securities, available-for-sale, allowance for credit loss

Accrued interest receivable on available-for-sale fixed maturity securities totaled $477 million, $470 million, and $456 million as of March 31, 2026, December 31, 2025, and March 31, 2025 and is excluded from the estimate of expected credit losses and the amortized cost basis in the table included within this Note.


(In millions)	Corporate and other bonds		Asset-backed		Total
Allowance for credit losses:
Balance as of January 1, 2026	$	28	$	41	$	69
Additions to the allowance for credit losses:
Securities for which credit losses were not previously recorded	3		—		3








Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period	—		3		3
Balance as of March 31, 2026	$	31	$	44	$	75



(In millions)	Corporate and other bonds		Asset-backed		Total
Allowance for credit losses:
Balance as of January 1, 2025	$	13	$	32	$	45
Additions to the allowance for credit losses:
Securities for which credit losses were not previously recorded	—		—		—








Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period	2		—		2
Balance as of March 31, 2025	$	15	$	32	$	47

Contractual maturity

The following table presents available-for-sale fixed maturity securities by contractual maturity.


	March 31, 2026				December 31, 2025
(In millions)	Cost or Amortized Cost		Estimated Fair Value		Cost or Amortized Cost		Estimated Fair Value
Due in one year or less	$	1,403	$	1,397	$	1,392	$	1,389
Due after one year through five years	11,744		11,529		11,318		11,214
Due after five years through ten years	13,249		12,839		13,491		13,238
Due after ten years	18,664		17,465		18,467		17,561
Total	$	45,060	$	43,230	$	44,668	$	43,402

Financing receivable credit quality indicators

The following table presents the amortized cost basis of mortgage loans for each credit quality indicator by year of origination. The primary credit quality indicators utilized are debt service coverage ratios (DSCR) and loan-to-value ratios (LTV).


March 31, 2026	Mortgage Loans Amortized Cost Basis by Origination Year (1)
(In millions)	2026		2025		2024		2023		2022		Prior		Total
DSCR ≥1.6x
LTV less than 55%	$	—	$	38	$	—	$	33	$	—	$	219	$	290
LTV 55% to 65%	—		37		—		12		26		12		87
LTV greater than 65%	—		—		—		—		—		13		13
DSCR 1.2x - 1.6x
LTV less than 55%	6		—		68		29		4		80		187
LTV 55% to 65%	—		107		33		38		21		28		227
LTV greater than 65%	5		7		—		—		46		—		58
DSCR ≤1.2
LTV less than 55%	—		—		—		22		—		21		43
LTV 55% to 65%	—		37		—		—		45		15		97
LTV greater than 65%	—		—		—		—		22		46		68
Total	$	11	$	226	$	101	$	134	$	164	$	434	$	1,070

(1) The values in the table above reflect DSCR on a standardized amortization period and LTV based on the most recent appraised values trended forward using changes in a commercial real estate price index.