INVESTMENTS (Tables)

3 Months Ended

Mar. 31, 2026

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 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 subdivisions	45		—		—		(5)		40
Corporate securities	9,987		(39)		110		(215)		9,843
Asset-backed securities	4,949		(14)		5		(43)		4,898
Mortgage-backed securities
Agency commercial	403		—		7		(2)		408
Non-agency commercial	1,249		—		2		(36)		1,215
Agency residential	5,429		—		53		(174)		5,309
Non-agency residential	1,772		—		17		(6)		1,783
Foreign government securities	2,375		—		21		(85)		2,311
Foreign corporate securities	8,040		—		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 subdivisions	45		—		—		(4)		41
Corporate securities	9,913		(54)		206		(183)		9,882
Asset-backed securities	5,094		(14)		14		(17)		5,077
Mortgage-backed securities
Agency commercial	404		—		9		(2)		412
Non-agency commercial	1,151		—		4		(33)		1,121
Agency residential	5,544		—		82		(161)		5,465
Non-agency residential	1,689		—		32		(1)		1,721
Foreign government securities	2,400		—		36		(64)		2,371
Foreign corporate securities	7,535		—		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 securities	340		(5)		5		(7)		333
Mortgage-backed securities
Non-agency commercial	—		—		—		—		—
Foreign corporate securities	83		(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 securities	328		(3)		5		(8)		322
Mortgage-backed securities
Commercial	—		—		—		—		—
Foreign corporate securities	79		(1)		6		—		84
Total fixed maturity securities - held to maturity	$	573	$	(6)	$	18	$	(9)	$	576

(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 March 31, 2026				At 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 years	11,228		11,138		10,746		10,819
Due after five years through ten years	7,065		6,973		6,722		6,781
Due after ten years	1,617		1,539		1,830		1,772
Asset-backed securities	4,949		4,898		5,094		5,077
Mortgage-backed securities
Agency commercial	403		408		404		412
Non-agency commercial	1,249		1,215		1,151		1,121
Agency residential	5,429		5,309		5,544		5,465
Non-agency residential	1,772		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, 2026				At 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 years	86		86		68		69
Due after five years through ten years	42		43		4		4
Due after ten years	105		107		148		155
Asset-backed securities	340		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.)

Schedule of Changes in Net Unrealized Appreciation (Depreciation) for the Company's Investments

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


	Three Months Ended March 31,
(Dollars in millions)	2026		2025
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.)

Schedule of Aggregate Fair Value and Gross Unrealized Depreciation of Fixed Maturity Securities 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 March 31, 2026 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	$	449	$	(4)	$	280	$	(13)	$	729	$	(17)
Obligations of U.S. states and political subdivisions	2		—		33		(5)		34		(5)
Corporate securities	2,784		(58)		1,949		(156)		4,733		(214)
Asset-backed securities	1,970		(28)		426		(15)		2,396		(43)
Mortgage-backed securities
Agency commercial	86		(1)		16		(1)		102		(2)
Non-agency commercial	480		(6)		598		(30)		1,078		(36)
Agency residential	682		(7)		1,704		(167)		2,386		(174)
Non-agency residential	541		(5)		76		(1)		617		(6)
Foreign government securities	1,178		(34)		460		(51)		1,638		(85)
Foreign corporate securities	2,769		(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 recorded	41		(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 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 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	$	244	$	(5)	$	333	$	(14)	$	577	$	(19)
Obligations of U.S. states and political subdivisions	2		—		33		(4)		35		(4)
Corporate securities	1,370		(31)		1,990		(147)		3,360		(179)
Asset-backed securities	802		(5)		429		(12)		1,231		(17)
Mortgage-backed securities
Agency commercial	43		(1)		17		(1)		60		(2)
Non-agency commercial	288		(5)		631		(29)		919		(33)
Agency residential	234		(3)		1,755		(158)		1,990		(161)
Non-agency residential	81		—		87		—		168		(1)
Foreign government securities	260		(4)		854		(61)		1,114		(64)
Foreign corporate securities	847		(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 recorded	24		(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.)

Schedule of Aggregate Fair Value and Gross Unrealized Depreciation of Fixed Maturity Securities by Contractual Maturity


	Duration of Unrealized Loss at March 31, 2026 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	$	307	$	(11)	$	523	$	(12)	$	830	$	(23)
Due in one year through five years	3,627		(68)		2,142		(162)		5,768		(230)
Due in five years through ten years	2,922		(78)		815		(94)		3,736		(172)
Due after ten years	325		(15)		707		(82)		1,033		(97)
Asset-backed securities	1,970		(28)		426		(15)		2,396		(43)
Mortgage-backed securities	1,789		(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 recorded	41		(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 December 31, 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	$	165	$	(5)	$	675	$	(18)	$	840	$	(23)
Due in one year through five years	1,475		(33)		2,411		(156)		3,887		(189)
Due in five years through ten years	859		(14)		987		(99)		1,846		(112)
Due after ten years	223		(3)		752		(74)		975		(77)
Asset-backed securities	802		(5)		429		(12)		1,231		(17)
Mortgage-backed securities	646		(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 recorded	24		(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.)

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 March 31,
(Dollars in millions)	2026		2025
Fixed maturities	$	393	$	386
Equity securities	2		1
Short-term investments and cash	26		48
Other invested assets
Limited partnerships	119		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.)

Schedule of Components of Net Realized Capital Gains (Losses)

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)	2026		2025
Credit allowance on fixed maturity securities	13		(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.)

Schedule of Roll Forward of Allowance for Credit Losses of Fixed Maturities, Available for Sale

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 disposals		22		—		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.)

Schedule of Roll Forward of Allowance for Credit Losses of Fixed Maturities, Held to Maturity


		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.)

Schedule of Proceeds and Split Between Gross Gains and Losses, from Dispositions of Fixed Maturity 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 March 31,
(Dollars in millions)	2026		2025
Proceeds from sales of fixed maturity securities - available for sale	$	519	$	127
Gross gains from sales	14		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.)