v3.26.1
Investments
 3 Months Ended
Mar. 31, 2026
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
March 31, 2026
Available-for-sale securities:
Fixed maturities:
U.S. government$44,676 $229 $(488)$0 $44,417 47.2 %
State and local government3,135 13 (61)0 3,087 3.3 
Foreign government16 0 0 0 16 0 
Corporate and other debt20,994 121 (132)3 20,986 22.3 
Residential mortgage-backed4,127 23 (13)(1)4,136 4.4 
Commercial mortgage-backed7,228 6 (243)0 6,991 7.4 
Other asset-backed8,232 13 (46)0 8,199 8.7 
Total fixed maturities88,408 405 (983)2 87,832 93.3 
Short-term investments2,126 0 0 0 2,126 2.3 
Total available-for-sale securities90,534 405 (983)2 89,958 95.6 
Equity securities:
Nonredeemable preferred stocks259 0 0 (19)240 0.2 
Common equities839 0 0 3,094 3,933 4.2 
Total equity securities1,098 0 0 3,075 4,173 4.4 
Total portfolio1
$91,632 $405 $(983)$3,077 $94,131 100.0 %
($ in millions)CostGross
Unrealized
Gains		Gross
Unrealized
Losses		Net
Holding
Period
Gains
(Losses)		Fair
Value		% of
Total
Fair
Value
March 31, 2025
Available-for-sale securities:
Fixed maturities:
U.S. government$44,523 $391 $(596)$0 $44,318 53.0 %
State and local government2,688 6 (90)0 2,604 3.1 
Foreign government16 0 0 0 16 0 
Corporate and other debt16,047 127 (156)(2)16,016 19.2 
Residential mortgage-backed2,172 18 (8)1 2,183 2.6 
Commercial mortgage-backed5,144 5 (324)0 4,825 5.8 
Other asset-backed7,164 25 (50)0 7,139 8.5 
Total fixed maturities77,754 572 (1,224)(1)77,101 92.2 
Short-term investments2,595 0 0 0 2,595 3.1 
Total available-for-sale securities80,349 572 (1,224)(1)79,696 95.3 
Equity securities:
Nonredeemable preferred stocks608 0 0 (24)584 0.7 
Common equities774 0 0 2,610 3,384 4.0 
Total equity securities1,382 0 0 2,586 3,968 4.7 
Total portfolio1
$81,731 $572 $(1,224)$2,585 $83,664 100.0 %
($ in millions)CostGross
Unrealized
Gains		Gross
Unrealized
Losses		Net
Holding
Period
Gains
(Losses)		Fair
Value		% of
Total
Fair
Value
December 31, 2025
Available-for-sale securities:
Fixed maturities:
U.S. government$43,114 $541 $(357)$0 $43,298 44.5 %
State and local government3,342 19 (58)0 3,303 3.4 
Foreign government17 0 0 0 17 0 
Corporate and other debt19,773 273 (68)13 19,991 20.5 
Residential mortgage-backed3,152 28 (6)1 3,175 3.3 
Commercial mortgage-backed6,194 12 (233)0 5,973 6.1 
Other asset-backed7,112 28 (31)0 7,109 7.3 
Total fixed maturities82,704 901 (753)14 82,866 85.1 
Short-term investments10,005 0 0 0 10,005 10.3 
Total available-for-sale securities92,709 901 (753)14 92,871 95.4 
Equity securities:
Nonredeemable preferred stocks419 0 0 (15)404 0.4 
Common equities819 0 0 3,279 4,098 4.2 
Total equity securities1,238 0 0 3,264 4,502 4.6 
Total portfolio1
$93,947 $901 $(753)$3,278 $97,373 100.0 %
1 At March 31, 2026 and 2025, and December 31, 2025, we had $443 million, $297 million, and $200 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 March 31, 2026 and 2025, and December 31, 2025, included $6.2 billion, $3.5 billion, and $13.0 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, 2025, were sold and proceeds were used to pay our common share dividends in January 2026; see Note 10 – Dividends for additional information.
At March 31, 2026, bonds and certificates of deposit in the principal amount of $789 million were on deposit to meet state insurance regulatory requirements. We did not hold any securities of any one issuer, excluding U.S. government securities, with an aggregate cost or fair value exceeding 10% of total shareholders’ equity at March 31, 2026 or 2025, or December 31, 2025. At March 31, 2026, 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:
 March 31,
(millions)20262025December 31, 2025
Fixed Maturities:
Corporate and other debt$702 $632 $733 
Residential mortgage-backed998 579 792 
Total hybrid securities$1,700 $1,211 $1,525 
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 March 31, 2026, was:
(millions)CostFair Value
Less than one year$10,830 $10,805 
One to five years45,137 44,725 
Five to ten years32,117 31,977 
Ten years or greater324 325 
Total$88,408 $87,832 
Asset-backed securities are classified in the maturity distribution table based upon their projected cash flows. All other securities that do not have a single maturity date are reported based upon expected average maturity. Contractual maturities may differ from expected maturities because the issuers of the securities may have the right to call or prepay obligations.
Gross Unrealized Losses The following tables show the composition of gross unrealized losses by major security type and by the length of time that individual securities have been in a continuous unrealized loss position:
 Total No. of Sec.Total
Fair
Value		Gross
Unrealized
Losses		Less than 12 Months12 Months or Greater
($ in millions)No. of Sec.Fair
Value		Gross Unrealized
Losses		No. of Sec.Fair
 Value		Gross Unrealized
Losses
March 31, 2026
U.S. government73 $23,054 $(488)32 $17,806 $(171)41 $5,248 $(317)
State and local government293 1,872 (61)116 689 (5)177 1,183 (56)
Corporate and other debt320 9,052 (132)236 6,990 (64)84 2,062 (68)
Residential mortgage-backed53 1,450 (13)35 1,397 (8)18 53 (5)
Commercial mortgage-backed191 5,591 (243)79 3,187 (10)112 2,404 (233)
Other asset-backed144 4,911 (46)112 4,080 (16)32 831 (30)
Total fixed maturities1,074 $45,930 $(983)610 $34,149 $(274)464 $11,781 $(709)
 Total No. of Sec.Total
Fair
Value		Gross
Unrealized
Losses		Less than 12 Months12 Months or Greater
($ in millions)No. of Sec.Fair
Value		Gross Unrealized
Losses		No. of Sec.Fair
 Value		Gross Unrealized
Losses
March 31, 2025
U.S. government85 $16,851 $(596)18 $9,284 $(69)67 $7,567 $(527)
State and local government307 1,871 (90)70 445 (2)237 1,426 (88)
Corporate and other debt210 4,967 (156)56 1,352 (12)154 3,615 (144)
Residential mortgage-backed47 674 (8)25 628 (2)22 46 (6)
Commercial mortgage-backed165 3,653 (324)22 597 (4)143 3,056 (320)
Other asset-backed89 2,046 (50)46 1,128 (3)43 918 (47)
Total fixed maturities903 $30,062 $(1,224)237 $13,434 $(92)666 $16,628 $(1,132)
 Total No. of Sec.Total
Fair
Value		Gross
Unrealized
Losses		Less than 12 Months12 Months or Greater
($ in millions)No. of Sec.Fair
Value		Gross Unrealized
Losses		No. of Sec.Fair
 Value		Gross Unrealized
Losses
December 31, 2025
U.S. government62 $17,402 $(357)8 $11,327 $(54)54 $6,075 $(303)
State and local government252 1,589 (58)60 318 (1)192 1,271 (57)
Corporate and other debt141 3,821 (68)36 1,177 (5)105 2,644 (63)
Residential mortgage-backed30 293 (6)12 233 (1)18 60 (5)
Commercial mortgage-backed147 3,551 (233)34 1,210 (3)113 2,341 (230)
Other asset-backed64 1,924 (31)32 1,148 (3)32 776 (28)
Total fixed maturities696 $28,580 $(753)182 $15,413 $(67)514 $13,167 $(686)
A review of the securities in an unrealized loss position indicated that, at the end of each period presented, 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 three months of 2026 or 2025, and did not have a material credit loss allowance balance as of March 31, 2026 and 2025, or December 31, 2025. No unrealized loss write offs were recorded during the three months ended March 31, 2026 or 2025.
As of March 31, 2026 and 2025, and December 31, 2025, 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 will pay their principal and interest obligations.
In addition, we reviewed our accrued investment income outstanding on those securities in an unrealized loss position at March 31, 2026 and 2025, and December 31, 2025, 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 March 31, 2026 and 2025, or December 31, 2025.
Realized Gains (Losses) The components of net realized gains (losses) for the three months ended March 31, were:
 Three Months
(millions)20262025
Gross realized gains on security sales
Available-for-sale securities:
U.S. government$99 $53 
State and local government1 0 
Corporate and other debt26 1 
Residential mortgage-backed1 0 
Total available-for-sale securities127 54 
Equity securities:
Nonredeemable preferred stocks8 2 
Common equities13 35 
Total equity securities21 37 
Subtotal gross realized gains on security sales148 91 
Gross realized losses on security sales
Available-for-sale securities:
U.S. government(36)(77)
State and local government0 (2)
Corporate and other debt(5)(1)
Commercial mortgage-backed0 (4)
Total available-for-sale securities(41)(84)
Equity securities:
Nonredeemable preferred stocks(5)(2)
Common equities(6)(4)
Total equity securities(11)(6)
Subtotal gross realized losses on security sales(52)(90)
Net realized gains (losses) on security sales
Available-for-sale securities:
U.S. government63 (24)
State and local government1 (2)
Corporate and other debt21 0 
Residential mortgage-backed1 0 
Commercial mortgage-backed0 (4)
Total available-for-sale securities86 (30)
Equity securities:
Nonredeemable preferred stocks3 0 
Common equities7 31 
Total equity securities10 31 
Subtotal net realized gains (losses) on security sales96 1 
Net holding period gains (losses)
Hybrid securities(27)3 
Equity securities(189)(216)
Subtotal net holding period gains (losses)(216)(213)
Total net realized gains (losses) on securities$(120)$(212)
During the first three months of 2026 and 2025, the majority of our security sales were U.S. government securities that were sold for duration management. We also selectively sold securities that we viewed as having less attractive risk/reward profiles during the first three months of 2026 and 2025.
The following table reflects our holding period realized gains (losses) recognized on equity securities held at the respective quarter ends:
Three Months
(millions)20262025
Total net gains (losses) recognized during the period on equity securities$(179)$(185)
Less: Net gains (losses) recognized on equity securities sold during the period10 31 
Net holding period gains (losses) recognized during the period on equity securities held at period end$(189)$(216)
Net Investment Income The components of net investment income for the three months ended March 31, were: 
Three Months
(millions)20262025
Available-for-sale securities:
Fixed maturities:
U.S. government$400 $422 
State and local government24 19 
Corporate and other debt235 171 
Residential mortgage-backed39 25 
Commercial mortgage-backed71 53 
Other asset-backed87 84 
Total fixed maturities856 774 
Short-term investments44 18 
Total available-for-sale securities900 792 
Equity securities:
Nonredeemable preferred stocks4 8 
Common equities13 14 
Total equity securities17 22 
Investment income917 814 
Investment expenses(8)(7)
Net investment income$909 $807 
On a year-over-year basis, investment income (interest and dividends) increased 13% for the three months ended March 31, 2026, compared to the same period last year. The increase primarily reflects growth in invested assets and an increase in recurring investment book yield. The book yield increase primarily reflects investing new cash from insurance operations, and proceeds from maturing bonds, in higher coupon rate securities.