v3.26.1
Investments (Tables)
 3 Months Ended
Mar. 31, 2026
Investments, Debt and Equity Securities [Abstract]  
Marketable Securities
Investment Portfolio
Carrying Value
As of
March 31, 2026December 31, 2025
 (in millions)
Fixed-maturity securities, available-for-sale$6,875 $6,369 
Fixed-maturity securities, trading127 124 
Short-term investments768 903 
Other invested assets:
Equity method investments:
Ownership interest in Sound Point406 415 
Funds and other investments685 664 
Other45 12 
Total (1)$8,906 $8,487 
____________________
(1)    In the investment portfolio, the aggregate carrying value of Sound Point managed investments was $549 million and $628 million as of March 31, 2026 and December 31, 2025, respectively, excluding the Company’s ownership interest in Sound Point and, as of December 31, 2025, certain investments in funds that were accounted for as CIVs.
Fixed Maturity Securities and Short Term Investments by Security Type
Available-for-Sale Fixed-Maturity Securities by Security Type
As of March 31, 2026
Security TypePercent
of
Total (1)		Amortized
Cost		Allowance for Credit LossesGross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair
Value
 (dollars in millions)
Obligations of state and political subdivisions25 %$1,800 $(13)$32 $(75)$1,744 
U.S. government and agencies1 56 — 1 (5)52 
Corporate securities (2)
48 3,478 (7)38 (159)3,350 
Mortgage-backed securities (3):
 
RMBS10 694 (27)6 (49)624 
Commercial mortgage-backed securities (CMBS)4 273 — 2 (3)272 
Asset-backed securities:
CLOs6 469 (16)1 (80)374 
Other (4)3 239 — 3 (1)241 
Non-U.S. government securities3 232 — 1 (15)218 
Total available-for-sale fixed-maturity securities100 %$7,241 $(63)$84 $(387)$6,875 
Available-for-Sale Fixed-Maturity Securities by Security Type
As of December 31, 2025
Security TypePercent
of
Total (1)		Amortized
Cost		Allowance for Credit LossesGross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair
Value
 (dollars in millions)
Obligations of state and political subdivisions28 %$1,816 $(13)$37 $(71)$1,769 
U.S. government and agencies1 55 — 1 (4)52 
Corporate securities (2)
46 2,998 (6)75 (115)2,952 
Mortgage-backed securities (3):
    
RMBS10 678 (26)10 (47)615 
CMBS3 197 — 2 (1)198 
Asset-backed securities:
CLOs7 499 (9)4 (38)456 
Other (4)3 206 — 3 — 209 
Non-U.S. government securities2 123 — 3 (8)118 
Total available-for-sale fixed-maturity securities100 %$6,572 $(54)$135 $(284)$6,369 
____________________
(1)Percentages are based on amortized cost.
(2)Corporate securities include taxable securities issued by universities and hospitals.
(3)U.S. government-agency obligations represented 70% and 75% of mortgage-backed securities as of March 31, 2026 and December 31, 2025, respectively, based on fair value.
(4)This category includes an investment in an affiliated entity with amortized cost of $53 million and fair value of $54 million, as of both March 31, 2026 and December 31, 2025.
Fixed-Maturity Securities Gross Unrealized Loss by Length of Time
Gross Unrealized Loss by Length of Time
for Available-for-Sale Fixed-Maturity Securities for Which a Credit Loss was Not Recorded
As of March 31, 2026
 Less than 12 months12 months or moreTotal
 Fair
Value		Gross Unrealized
Loss		Fair
Value		Gross Unrealized
Loss		Fair
Value		Gross Unrealized
Loss
 (dollars in millions)
Obligations of state and political subdivisions$393 $(3)$629 $(72)$1,022 $(75)
U.S. government and agencies23 — 5 (5)28 (5)
Corporate securities1,222 (38)626 (91)1,848 (129)
Mortgage-backed securities: 
RMBS105 (1)103 (6)208 (7)
CMBS130 (2)55 (1)185 (3)
Asset-backed securities:
CLOs139 (5)43 — 182 (5)
Other79 (1)9 — 88 (1)
Non-U.S. government securities168 (6)19 (9)187 (15)
Total$2,259 $(56)$1,489 $(184)$3,748 $(240)
Number of securities (1) 728  735  1,439 
Gross Unrealized Loss by Length of Time
for Available-for-Sale Fixed-Maturity Securities for Which a Credit Loss was Not Recorded
As of December 31, 2025
 Less than 12 months12 months or moreTotal
 Fair
Value		Gross Unrealized
Loss		Fair
Value		Gross Unrealized
Loss		Fair
Value		Gross Unrealized
Loss
 (dollars in millions)
Obligations of state and political subdivisions$79 $(1)$837 $(70)$916 $(71)
U.S. government and agencies14 — 5 (4)19 (4)
Corporate securities122 (1)732 (87)854 (88)
Mortgage-backed securities:    
RMBS11 — 114 (6)125 (6)
CMBS41 — 57 (1)98 (1)
Asset-backed securities:
CLOs189 (9)44 (5)233 (14)
Other31 — 19 — 50 — 
Non-U.S. government securities2 — 19 (8)21 (8)
Total$489 $(11)$1,827 $(181)$2,316 $(192)
Number of securities (1) 167  855  1,014 
___________________
(1)    The number of securities does not add across because lots consisting of the same securities have been purchased at different times and appear in both categories above (i.e., less than 12 months and 12 months or more). If a security appears in both categories, it is counted only once in the total column.
Investments Classified by Contractual Maturity Date
The amortized cost and estimated fair value of available-for-sale fixed-maturity securities by contractual maturity as of March 31, 2026 are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
 
Distribution of Available-for-Sale Fixed-Maturity Securities by Contractual Maturity
As of March 31, 2026
 Amortized
Cost		Estimated
Fair Value
 (in millions)
Due within one year$232 $234 
Due after one year through five years1,462 1,452 
Due after five years through 10 years2,132 2,048 
Due after 10 years2,448 2,245 
Mortgage-backed securities:  
RMBS694 624 
CMBS273 272 
Total$7,241 $6,875 
Net Investment Income
Income from Investments
 First Quarter
 20262025
(in millions)
Investment income:
Fixed-maturity securities, available-for-sale (1)$85 $74 
Short-term investments8 13 
Other invested assets1 1 
Investment income94 88 
Investment expenses(2)(1)
Net investment income$92 $87 
Fair value gains (losses) on trading securities (2)$6 $1 
Equity in earnings (losses) of investees:
Ownership interest in Sound Point$6 $13 
Funds and other investments25 40 
Equity in earnings (losses) of investees$31 $53 
____________________
(1)    Amounts include $3 million and $7 million of investment income on Loss Mitigation Securities for first quarter 2026 and first quarter 2025, respectively.
(2)    Fair value gains on trading securities pertaining to securities still held as of March 31, 2026 were $5 million for first quarter 2026.
Net Realized Investment Gains (Losses)
The table below presents the components of net realized investment gains (losses). Realized gains and losses on sales of investments are determined using the specific identification method.
Net Realized Investment Gains (Losses)
 First Quarter
 20262025
 (in millions)
Gross realized gains on sales of available-for-sale securities$2 $3 
Gross realized losses on sales of available-for-sale securities(2)(8)
Net foreign currency gains (losses)1 (1)
Change in the allowance for credit losses and intent to sell (1)(16)(10)
Net realized investment gains (losses)$(15)$(16)
____________________
(1)    The change in the allowance for credit losses for first quarter 2026 was primarily related to CLO equity tranches and, in first quarter 2025, was primarily related to Loss Mitigation Securities.
Rollforward of Credit Losses for Available-for-sale Fixed-Maturity Securities
The following table presents the roll forward of the allowance for the credit losses on available-for-sale fixed-maturity securities.

Roll Forward of Allowance for Credit Losses
for Available-for-Sale Fixed-Maturity Securities
 First Quarter
 20262025
 (in millions)
Balance, beginning of period$54 $60 
Additions for securities for which credit losses were not previously recognized11 1 
Additions (reductions) for securities for which credit losses were previously recognized5 9 
Write-offs charged against the allowance(7)(25)
Balance, end of period$63 $45