INVESTMENT SECURITIES

6 Months Ended

Jun. 30, 2026

Investments, Debt and Equity Securities [Abstract]

INVESTMENT SECURITIES. Substantially all of our non-current investment securities are held within our run-off insurance operations and support the long-duration insurance liabilities. The portfolio includes debt securities, which substantially all are investment grade, and are classified as available-for-sale.


	June 30, 2026								December 31, 2025
	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value		Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value




Debt
U.S. corporate	$	27,791	$	621	$	(2,094)	$	26,318	$	27,658	$	825	$	(1,969)	$	26,513
Non-U.S. corporate	2,966		19		(252)		2,732		2,909		41		(242)		2,707
State and municipal	2,623		36		(193)		2,466		2,751		46		(192)		2,605
Mortgage and asset-backed	5,314		53		(129)		5,238		5,202		69		(121)		5,151
Government and agencies	690		1		(98)		594		1,015		4		(95)		924
Equity	562		—		—		562		887		—		—		887
Non-current investment securities	$	39,946	$	730	$	(2,766)	$	37,910	$	40,422	$	985	$	(2,619)	$	38,788

The amortized cost of debt securities excludes accrued interest of $479 million and $473 million at June 30, 2026 and December 31, 2025, respectively, which is reported in All other current assets.

The estimated fair value of non-current investment securities at June 30, 2026 decreased since December 31, 2025, primarily due to higher market yields, the mark-to-market effect on our equity interests and net proceeds from debt/equity securities.

Total estimated fair value of debt securities in an unrealized loss position were $20,078 million and $18,484 million, of which $13,600 million and $14,656 million had gross unrealized losses of $(2,604) million and $(2,525) million and have been in a loss position for 12 months or more at June 30, 2026 and December 31, 2025, respectively. The majority of our U.S. and non-U.S. corporate securities gross unrealized losses were in the consumer, electric, technology, communication and energy industries. The majority of our commercial mortgage-backed securities and asset-backed securities in an unrealized loss position have received investment-grade credit ratings from the major rating agencies. For our securities in an unrealized loss position, the losses are not indicative of credit losses, we currently do not intend to sell the investments, and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost basis.


	Three months ended June 30				Six months ended June 30
	2026		2025		2026		2025
Net unrealized gains (losses) for equity securities with readily determinable fair value (RDFV)	$	67	$	5	$	(245)	$	10
Proceeds from debt/equity securities sales and redemptions	1,245		552		2,164		1,224
Gross realized gains on debt securities	25		5		31		10
Gross realized losses and impairments on debt securities	(31)		(10)		(38)		(17)

Contractual maturities of our debt securities (excluding mortgage and asset-backed securities) at June 30, 2026 are as follows:


	Amortized cost		Estimated fair value
Within one year	$	631	$	633
After one year through five years	3,017		3,081
After five years through ten years	5,831		6,010
After ten years	24,591		22,387

We expect actual maturities to differ from contractual maturities because borrowers have the right to call or prepay certain obligations.

The majority of our non-current investment securities are classified within Level 2, as their valuation is determined based on significant observable inputs. Investments with a fair value of $3,353 million and $3,222 million are classified within Level 3, as significant inputs to their valuation models are unobservable at June 30, 2026 and December 31, 2025, respectively. During the six months ended June 30, 2026, $138 million was transferred out of Level 3 and there were no significant transfers into Level 3. During the six months ended June 30, 2025, $1,144 million was transferred out of Level 3 related to increases in the observability of external information used in determining fair value in our run-off insurance operations and primarily included certain investments in private placement U.S. and non-U.S. corporate debt securities, and there were no significant transfers into Level 3.

In addition to the equity securities described above, we held $2,056 million and $1,911 million of equity securities without RDFV including $2,041 million and $1,881 million within our run-off insurance operations at June 30, 2026 and December 31, 2025, respectively, that are classified within All other assets in our Statement of Financial Position. Fair value adjustments, net of impairments, recorded in income were $31 million and $62 million and $71 million and $100 million for the three and six months ended June 30, 2026 and 2025, respectively. These are primarily limited partnership investments in private equity, infrastructure and real estate funds that are measured at net asset value per share (or equivalent) as a practical expedient to estimated fair value and are excluded from the fair value hierarchy. These limited partnership investments are generally not eligible for redemption and generally cannot be sold without approval of the general partner. Distributions from each fund will be received as the underlying investments of the funds are liquidated at the discretion of the general partner. These investments are generally considered illiquid and our ability to receive the most recent net asset value in a sale would be determined by external market factors.