v3.26.1
INVESTMENTS
 3 Months Ended
Mar. 31, 2026
Investments, Debt and Equity Securities [Abstract]  
INVESTMENTS INVESTMENTS
As of March 31, 2026, we held $132 million and $15 million of fixed maturity securities - available for sale and short-term investments, respectively, for our Canadian Commercial Retail Insurance operations, reported as assets held-for-sale within Other assets. This compares to $139 million and $12 million of fixed maturity securities - available for sale and short-term investments, respectively, at December 31, 2025, which was included in total investments and cash. Refer to Note 6 of the Notes to the Consolidated Financial Statements for additional information.
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 March 31, 2026
(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$888 $— $2 $(17)874 
Obligations of U.S. states and political subdivisions45 — — (5)40 
Corporate securities9,987 (39)110 (215)9,843 
Asset-backed securities4,949 (14)5 (43)4,898 
Mortgage-backed securities
Agency commercial403 — 7 (2)408 
Non-agency commercial1,249 — 2 (36)1,215 
Agency residential5,429 — 53 (174)5,309 
Non-agency residential1,772 — 17 (6)1,783 
Foreign government securities2,375 — 21 (85)2,311 
Foreign corporate securities8,040 — 132 (201)7,970 
Total fixed maturity securities - available for sale$35,137 $(53)$352 $(784)$34,651 
(Some amounts may not reconcile due to rounding.)
At December 31, 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$845 $— $4 $(19)$830 
Obligations of U.S. states and political subdivisions45 — — (4)41 
Corporate securities9,913 (54)206 (183)9,882 
Asset-backed securities5,094 (14)14 (17)5,077 
Mortgage-backed securities
Agency commercial404 — 9 (2)412 
Non-agency commercial1,151 — 4 (33)1,121 
Agency residential5,544 — 82 (161)5,465 
Non-agency residential1,689 — 32 (1)1,721 
Foreign government securities2,400 — 36 (64)2,371 
Foreign corporate securities7,535 — 253 (135)7,653 
Total fixed maturity securities - available for sale$34,620 $(68)$640 $(619)$34,573 
(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 March 31, 2026
(Dollars in millions)Amortized
Cost		Allowance for
Credit Losses		Unrealized
Appreciation		Unrealized
Depreciation		Fair
Value
Fixed maturity securities - held to maturity
Corporate securities$181 $(2)$4 $(2)$180 
Asset-backed securities340 (5)5 (7)333 
Mortgage-backed securities
Non-agency commercial— — — — — 
Foreign corporate securities83 (1)6 — 88 
Total fixed maturity securities - held to maturity$604 (8)$14 $(9)$601 
(Some amounts may not reconcile due to rounding.)
At December 31, 2025
(Dollars in millions)Amortized
Cost		Allowance for
Credit Losses		Unrealized
Appreciation		Unrealized
Depreciation		Fair
Value
Fixed maturity securities - held to maturity
Corporate securities$166 $(2)$7 $(1)$169 
Asset-backed securities328 (3)5 (8)322 
Mortgage-backed securities
Commercial— — — — — 
Foreign corporate securities79 (1)6 — 84 
Total fixed maturity securities - held to maturity$573 $(6)$18 $(9)$576 
(Some amounts may not reconcile due to rounding.)
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 March 31, 2026At December 31, 2025
(Dollars in millions)Amortized
Cost		Fair
Value		Amortized
Cost		Fair
Value
Fixed maturity securities – available for sale
Due in one year or less$1,425 $1,389 $1,440 $1,405 
Due after one year through five years11,228 11,138 10,746 10,819 
Due after five years through ten years7,065 6,973 6,722 6,781 
Due after ten years1,617 1,539 1,830 1,772 
Asset-backed securities4,949 4,898 5,094 5,077 
Mortgage-backed securities
Agency commercial403 408 404 412 
Non-agency commercial1,249 1,215 1,151 1,121 
Agency residential5,429 5,309 5,544 5,465 
Non-agency residential1,772 1,783 1,689 1,721 
Total fixed maturity securities - available for sale$35,137 $34,651 $34,620 $34,573 
(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 March 31, 2026At December 31, 2025
(Dollars in millions)Amortized
Cost		Fair
Value		Amortized
Cost		Fair
Value
Fixed maturity securities – held to maturity
Due in one year or less$32 $32 $25 $25 
Due after one year through five years86 86 68 69 
Due after five years through ten years42 43 4 4 
Due after ten years105 107 148 155 
Asset-backed securities340 333 328 322 
Mortgage-backed securities
Non-agency commercial— — — — 
Total fixed maturity securities - held to maturity$604 $601 $573 $576 
(Some amounts may not reconcile due to rounding.)
The changes in net URA(D) for the Company’s investments are as follows:
Three Months Ended
March 31,
(Dollars in millions)20262025
Increase (decrease) during the period between the fair value and cost of
investments carried at fair value, and deferred taxes thereon:
Fixed maturity securities - available for sale, held to maturity and short-term investments$(453)$347 
Equity method investments— — 
Change in URA(D), pre-tax(453)347 
Deferred tax benefit (expense)78 (59)
Change in URA(D), net of deferred taxes, included in shareholders’ equity$(374)$289 
(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 the individual securities had been in a continuous unrealized loss position for the periods indicated:
Duration of Unrealized Loss at March 31, 2026 by Security Type
Less than 12 monthsGreater than 12 monthsTotal
(Dollars in millions)Fair ValueGross
Unrealized
Depreciation		Fair ValueGross
Unrealized
Depreciation		Fair ValueGross
Unrealized
Depreciation
Fixed maturity securities - available for sale
U.S. Treasury securities and obligations of
U.S. government agencies and corporations$449 $(4)$280 $(13)$729 $(17)
Obligations of U.S. states and political subdivisions2 — 33 (5)34 (5)
Corporate securities2,784 (58)1,949 (156)4,733 (214)
Asset-backed securities1,970 (28)426 (15)2,396 (43)
Mortgage-backed securities
Agency commercial86 (1)16 (1)102 (2)
Non-agency commercial 480 (6)598 (30)1,078 (36)
Agency residential682 (7)1,704 (167)2,386 (174)
Non-agency residential541 (5)76 (1)617 (6)
Foreign government securities1,178 (34)460 (51)1,638 (85)
Foreign corporate securities2,769 (76)1,465 (125)4,234 (201)
Total$10,939 $(220)$7,007 $(563)$17,946 $(783)
Securities where an allowance for credit loss was recorded41 (1)— — 41 (1)
Total fixed maturity securities - available for sale$10,980 $(221)$7,007 $(563)$17,987 $(784)
(Some amounts may not reconcile due to rounding.)
Duration of Unrealized Loss at March 31, 2026 by Maturity
Less than 12 monthsGreater than 12 monthsTotal
(Dollars in millions)Fair ValueGross
Unrealized
Depreciation		Fair ValueGross
Unrealized
Depreciation		Fair ValueGross
Unrealized
Depreciation
Fixed maturity securities - available for sale
Due in one year or less$307 $(11)$523 $(12)$830 $(23)
Due in one year through five years3,627 (68)2,142 (162)5,768 (230)
Due in five years through ten years2,922 (78)815 (94)3,736 (172)
Due after ten years325 (15)707 (82)1,033 (97)
Asset-backed securities1,970 (28)426 (15)2,396 (43)
Mortgage-backed securities1,789 (19)2,394 (199)4,182 (218)
Total$10,939 $(220)$7,007 $(563)$17,946 $(783)
Securities where an allowance for credit loss was recorded41 (1)— — 41 (1)
Total fixed maturity securities - available for sale$10,980 $(221)$7,007 $(563)$17,987 $(784)
(Some amounts may not reconcile due to rounding.)
The aggregate fair value and gross unrealized losses related to fixed maturity securities - available for sale in an unrealized loss position at March 31, 2026 were $18.0 billion and $784 million, respectively. The fair value of securities for the single issuer (the U.K. government), whose securities comprised the largest unrealized loss position at March 31, 2026, amounted to less than 1% of the overall fair value of the Company’s fixed maturity securities - available for sale. The fair value of the securities for the issuer with the second largest unrealized loss position at March 31, 2026 comprised less than 2% of the Company’s fixed maturity securities available for sale. In addition, as indicated on the above table, there was no significant concentration of unrealized losses in any one market sector. The $221 million of unrealized losses related to fixed maturity securities - available for sale that have been in an unrealized loss position for less than one year were generally comprised of domestic and foreign corporate securities, foreign government securities and asset-backed securities. Of these unrealized losses, $213 million were related to securities that were rated investment grade by at least one nationally recognized rating agency. The $563 million of unrealized losses related to fixed maturity securities - available for sale in an unrealized loss position for more than one year related primarily to domestic and
foreign corporate securities, agency residential and non-agency commercial mortgage-backed securities and foreign government securities. Of these unrealized losses, $554 million were related to securities that were rated investment grade by at least one nationally recognized rating agency. In all instances, there were no projected cash flow shortfalls to recover the full book value of the investments and the related interest obligations. The mortgage-backed securities still have excess credit coverage and are current on interest and principal payments. Based upon the Company’s current evaluation of securities in an unrealized loss position as of March 31, 2026, the unrealized losses are due to changes in interest rates and non-issuer-specific credit spreads and are not credit-related. In addition, the contractual terms of these securities do not permit these securities to be settled at a price less than their amortized cost.
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, 2025 by Security Type
Less than 12 monthsGreater than 12 monthsTotal
(Dollars in millions)Fair ValueGross
Unrealized
Depreciation		Fair ValueGross
Unrealized
Depreciation		Fair ValueGross
Unrealized
Depreciation
Fixed maturity securities - available for sale
U.S. Treasury securities and obligations of
U.S. government agencies and corporations$244 $(5)$333 $(14)$577 $(19)
Obligations of U.S. states and political subdivisions2 — 33 (4)35 (4)
Corporate securities1,370 (31)1,990 (147)3,360 (179)
Asset-backed securities802 (5)429 (12)1,231 (17)
Mortgage-backed securities
Agency commercial43 (1)17 (1)60 (2)
Non-agency commercial288 (5)631 (29)919 (33)
Agency residential234 (3)1,755 (158)1,990 (161)
Non-agency residential81 — 87 — 168 (1)
Foreign government securities260 (4)854 (61)1,114 (64)
Foreign corporate securities847 (15)1,615 (120)2,463 (135)
Total$4,171 $(68)$7,745 $(547)$11,916 $(615)
Securities where an allowance for credit loss was recorded24 (2)14 (2)37 (4)
Total fixed maturity securities - available for sale$4,194 $(70)$7,759 $(549)$11,953 $(619)
(Some amounts may not reconcile due to rounding.)
Duration of Unrealized Loss at December 31, 2025 by Maturity
Less than 12 monthsGreater than 12 monthsTotal
(Dollars in millions)Fair ValueGross
Unrealized
Depreciation		Fair ValueGross
Unrealized
Depreciation		Fair ValueGross
Unrealized
Depreciation
Fixed maturity securities - available for sale
Due in one year or less$165 $(5)$675 $(18)$840 $(23)
Due in one year through five years1,475 (33)2,411 (156)3,887 (189)
Due in five years through ten years859 (14)987 (99)1,846 (112)
Due after ten years223 (3)752 (74)975 (77)
Asset-backed securities802 (5)429 (12)1,231 (17)
Mortgage-backed securities646 (8)2,490 (188)3,137 (196)
Total$4,171 $(68)$7,745 $(547)$11,916 $(615)
Securities where an allowance for credit loss was recorded24 (2)14 (2)37 (4)
Total fixed maturity securities - available for sale$4,194 $(70)$7,759 $(549)$11,953 $(619)
(Some amounts may not reconcile due to rounding.)
The aggregate fair value and gross unrealized losses related to fixed maturity securities - available for sale in an unrealized loss position at December 31, 2025 were $12.0 billion and $619 million, respectively. The fair value of securities for the single issuer (the U.S. government), whose securities comprised the largest unrealized loss position at
December 31, 2025, amounted to less than 1.7% of the overall fair value of the Company’s fixed maturity securities - available for sale. The fair value of the securities for the issuer with the second largest unrealized loss comprised less than 0.2% of the Company’s fixed maturity securities - available for sale. In addition, as indicated on the above table, there was no significant concentration of unrealized losses in any one market sector. The $70 million of unrealized losses related to fixed maturity securities - available for sale that have been in an unrealized loss position for less than one year were generally comprised of domestic and foreign corporate securities, asset-backed securities, non-agency commercial mortgage-backed securities and foreign government securities. Of these unrealized losses, $66 million were related to securities that were rated investment grade by at least one nationally recognized rating agency. The $549 million of unrealized losses related to fixed maturity securities - available for sale in an unrealized loss position for more than one year related primarily to domestic and foreign corporate securities, agency residential and non-agency commercial mortgage-backed securities and foreign government securities. Of these unrealized losses, $540 million were related to securities that were rated investment grade by at least one nationally recognized rating agency. In all instances, there were no projected cash flow shortfalls to recover the full book value of the investments and the related interest obligations. The mortgage-backed securities still have excess credit coverage and are current on interest and principal payments.
The components of net investment income are presented in the table below for the periods indicated:
Three Months Ended
March 31,
(Dollars in millions)20262025
Fixed maturities$393 $386 
Equity securities2 1 
Short-term investments and cash26 48 
Other invested assets
Limited partnerships119 25 
Other 37 30 
Gross investment income before adjustments 577 490 
Funds held interest income (expense)4 12 
Future policy benefit reserve income (expense)— — 
Gross investment income 581 502 
Investment expenses 13 11 
Net investment income$567 $491 
(Some amounts may not reconcile due to rounding.)
The Company records results from limited partnership investments on the equity method of accounting with changes in value reported through net investment income. The net investment income from limited partnerships is dependent upon the Company’s share of the net asset values (“NAVs”) of interests underlying each limited partnership. Due to the timing of receiving financial information from these partnerships, the results are generally reported on a one month or quarter lag. If the Company determines there has been a significant decline in value of a limited partnership during this lag period, a loss will be recorded in the period in which the Company identifies the decline.
The Company had contractual commitments to invest up to an additional $2.3 billion in limited partnerships and private placement loan securities at March 31, 2026, which includes $1.3 billion specific to limited partnerships as noted below. These commitments will be funded when called in accordance with the partnership and loan agreements, which have investment periods that expire, unless extended, through 2036.
In 2022, the Company entered into corporate-owned life insurance (“COLI”) policies, which are invested in debt and equity securities. The COLI policies are carried within other invested assets at the policy cash surrender value of $1.9 billion and $1.9 billion as of March 31, 2026 and December 31, 2025, respectively.
Variable Interest Entities
The Company is engaged with various special purpose entities and other entities that are deemed to be VIEs, primarily as an investor through normal investment activities but also as an investment manager. A VIE is an entity that either has investors that lack certain essential characteristics of a controlling financial interest, such as simple majority kick-out rights, or lacks sufficient funds to finance its own activities without financial support provided by other entities. The Company performs ongoing qualitative assessments of its VIEs to determine whether the Company has a controlling
financial interest in the VIE and therefore is the primary beneficiary. The Company is deemed to have a controlling financial interest when it has both the ability to direct the activities that most significantly impact the economic performance of the VIE and the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. Based on the Company’s assessment, if it determines it is the primary beneficiary, the Company consolidates the VIE in the Company’s consolidated financial statements. As of March 31, 2026 and December 31, 2025, the Company did not hold any investments for which it is the primary beneficiary.
The Company, through normal investment activities, makes passive investments in general and limited partnerships and other alternative investments. For these non-consolidated VIEs, the Company has determined it is not the primary beneficiary as it has no ability to direct activities that could significantly affect the economic performance of the investments. The Company’s maximum exposure to loss as of March 31, 2026 and December 31, 2025 is limited to the total carrying value of $4.0 billion and $3.9 billion, respectively, which are included in general and limited partnerships.
As of March 31, 2026, the Company has outstanding commitments totaling $1.3 billion whereby the Company is committed to fund these investments and may be called by the partnership during the commitment period to fund the purchase of new investments and partnership expenses. These investments are generally of a passive nature in that the Company does not take an active role in management.
In addition, the Company makes passive investments in structured securities issued by VIEs for which the Company is not the manager. These investments are included in asset-backed securities, which includes collateralized loan obligations, and are classified as fixed maturities, available for sale. The Company has not provided financial or other support with respect to these investments other than its original investment. For these investments, the Company determined it is not the primary beneficiary due to the relative size of the Company’s investment in comparison to the principal amount of the structured securities issued by the VIEs, credit subordination that reduces the Company’s obligation to absorb losses or right to receive benefits or the Company’s inability to direct the activities that most significantly impact the economic performance of the VIEs. The Company’s maximum exposure to loss on these investments is limited to the amount of the Company’s investment.
The components of net gains (losses) on investments are presented in the table below for the periods indicated:
Three Months Ended
March 31,
(Dollars in millions)20262025
Credit allowance on fixed maturity securities13 (1)
Gains (losses) from fair value adjustment on public equities$(7)$(2)
Net realized gains (losses) from dispositions:
Fixed maturities(16)(4)
Equity securities— — 
Other Invested Assets— — 
Short-term investments— — 
Total net realized gains (losses) from dispositions(16)(5)
Total net gains (losses) on investments(10)(7)
(Some amounts may not reconcile due to rounding.)
The following tables provide a roll forward of the Company’s beginning and ending balance of allowance for credit losses for the periods indicated:
Roll Forward of Allowance for Credit Losses - Fixed Maturities - Available for Sale
Three Months Ended March 31, 2026
(Dollars in millions)Corporate
Securities		Asset-Backed
Securities		Total
Beginning balance$(54)$(14)$(68)
Credit losses on securities where credit
losses were not previously recorded(1)— (1)
Increases in allowance on previously
impaired securities(6)— (6)
Decreases in allowance on previously
impaired securities— — — 
Reduction in allowance due to disposals22 — 22 
Balance, end of period$(39)$(14)$(53)
(Some amounts may not reconcile due to rounding.)
Roll Forward of Allowance for Credit Losses - Fixed Maturities - Available for Sale
Three Months Ended March 31, 2025
(Dollars in millions)Corporate
Securities		Asset-Backed
Securities		Total
Beginning balance$(35)$— $(36)
Credit losses on securities where credit
losses were not previously recorded(1)— (1)
Increases in allowance on previously
impaired securities— — — 
Decreases in allowance on previously
impaired securities— — — 
Reduction in allowance due to disposals— — — 
Balance, end of period$(36)$— $(37)
(Some amounts may not reconcile due to rounding.)
Roll Forward of Allowance for Credit Losses - Fixed Maturities - Held to Maturity
Three Months Ended March 31, 2026
(Dollars in millions)Corporate
Securities		Asset-Backed
Securities		Foreign
Corporate
Securities		Total
Beginning balance$(2)$(3)$(1)$(6)
Credit losses on securities where credit
losses were not previously recorded— (2)— (2)
Increases in allowance on previously
impaired securities— — — — 
Decreases in allowance on previously
impaired securities— — — — 
Reduction in allowance due to disposals— — — — 
Balance, end of period$(2)$(5)$(1)$(8)
(Some amounts may not reconcile due to rounding.)
Roll Forward of Allowance for Credit Losses - Fixed Maturities - Held to Maturity
Three Months Ended March 31, 2025
(Dollars in millions)Corporate
Securities		Asset-Backed
Securities		Foreign
Corporate
Securities		Total
Beginning balance$(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— — — — 
Balance, end of period(2)(4)$(1)$(8)
(Some amounts may not reconcile due to rounding.)
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
March 31,
(Dollars in millions)20262025
Proceeds from sales of fixed maturity securities - available for sale$519 $127 
Gross gains from sales14 5 
Gross losses from sales(30)(9)
Proceeds from sales of fixed maturity securities - held to maturity$— $10 
Gross gains from sales— — 
Gross losses from sales— (1)
Proceeds from sales of equity securities$— $50 
Gross gains from sales— — 
Gross losses from sales— — 
(Some amounts may not reconcile due to rounding.)
In 2025, the Company sold fixed maturity securities - held to maturity with a net carrying amount of $11 million, which had realized losses of $1 million as part of the sale. The Company's decision to sell was due to significant credit deterioration of the issuer of the securities. There were no sales of fixed maturity securities - held to maturity for the three months ended March 31, 2026.