v3.26.1
Investments
 6 Months Ended
Jun. 30, 2026
Investments [Abstract]  
Investment Investments
The following table provides amortized cost, gross unrealized gains, gross unrealized losses and fair value for our fixed-maturity and short-term investments:
(Dollars in millions)Amortized
cost		Gross unrealizedFair value
At June 30, 2026gainslosses
Fixed-maturity:    
Corporate $10,592 $105 $241 $10,456 
States, municipalities and political subdivisions5,023 41 182 4,882 
Government-sponsored enterprises 2,512 — 41 2,471 
Asset-backed812 6 10 808 
United States government321 — 4 317 
Foreign government20 — — 20 
Total fixed-maturity19,280 152 478 18,954 
Short-term143 — 1 142 
Total fixed-maturity and short-term investments$19,423 $152 $479 $19,096 
At December 31, 2025    
Fixed-maturity:    
Corporate $9,750 $164 $203 $9,711 
States, municipalities and political subdivisions5,065 35 181 4,919 
Government-sponsored enterprises2,360 3 4 2,359 
Asset-backed 793 12 8 797 
United States government312 2 1 313 
Foreign government24 — — 24 
Total fixed-maturity18,304 216 397 18,123 
Short-term148 — — 148 
Total fixed-maturity and short-term investments$18,452 $216 $397 $18,271 
 
The increase in net unrealized investment losses in our fixed-maturity portfolio at June 30, 2026, is primarily due to an increase in U.S. Treasury yields partially offset by a slight tightening of corporate credit spreads. Our asset-backed securities had an average rating of Aa2/AA at both June 30, 2026 and December 31, 2025.
The table below provides fair values and gross unrealized losses by investment category and by the duration of the continuous unrealized loss positions:
(Dollars in millions)Less than 12 months12 months or moreTotal
At June 30, 2026Fair
value		Unrealized
losses		Fair
value		Unrealized
losses		Fair
value		Unrealized
losses
Fixed-maturity:      
Corporate $3,194 $42 $2,580 $199 $5,774 $241 
States, municipalities and political subdivisions316 2 2,063 180 2,379 182 
Government-sponsored enterprises2,152 38 193 3 2,345 41 
Asset-backed202 3 184 7 386 10 
United States government276 3 20 1 296 4 
Foreign government14 — — — 14 — 
Total fixed-maturity6,154 88 5,040 390 11,194 478 
Short-term142 1 — — 142 1 
Total fixed-maturity and short-term investments$6,296 $89 $5,040 $390 $11,336 $479 
At December 31, 2025      
Fixed-maturity:      
Corporate $849 $15 $2,926 $188 $3,775 $203 
States, municipalities and political subdivisions204 2 2,346 179 2,550 181 
Government-sponsored enterprises983 3 195 1 1,178 4 
Asset-backed101 2 184 6 285 8 
United States government69 — 20 1 89 1 
Total fixed-maturity$2,206 $22 $5,671 $375 $7,877 $397 

Contractual maturity dates for our fixed-maturity and short-term investments were:
(Dollars in millions)Amortized
cost		Fair
value		% of fair
value
At June 30, 2026
Maturity dates:   
Due in one year or less$857 $852 4.4 %
Due after one year through five years3,308 3,299 17.3 
Due after five years through ten years5,156 5,132 26.9 
Due after ten years10,102 9,813 51.4 
Total$19,423 $19,096 100.0 %

Actual maturities may differ from contractual maturities when there is a right to call or prepay obligations with or without call or prepayment penalties.
The following table provides investment income and investment gains and losses, net:
(Dollars in millions)Three months ended June 30,Six months ended June 30,
2026202520262025
Investment income:
Interest$244 $214 $479 $424 
Dividends72 70 148 137 
Other 8 5 20 12 
Total324 289 647 573 
Less investment expenses5 4 10 8 
Total$319 $285 $637 $565 
Investment gains and losses, net:    
Equity securities:    
Investment gains and losses on securities sold, net$183 $(1)$223 $(3)
Unrealized gains and losses on securities still held, net1,117 481 1,006 411 
Subtotal1,300 480 1,229 408 
Fixed-maturity securities:    
Gross realized gains7 1 9 1 
Gross realized losses(1)— (2)— 
Change in allowance for credit losses, net(1)(13)(2)(15)
Subtotal5 (12)5 (14)
Other3 5 4 12 
Total$1,308 $473 $1,238 $406 
 
The fair value of our equity portfolio was $13.194 billion and $12.694 billion at June 30, 2026, and December 31, 2025, respectively. Apple Inc. (Nasdaq:AAPL), an equity holding, was our largest single investment holding with fair values of $1.004 billion and $958 million, which was 7.8% and 7.7% of our publicly traded common equities portfolio and 3.1% and 3.1% of the total investment portfolio at June 30, 2026, and December 31, 2025.

The allowance for credit losses on fixed-maturity securities was $55 million and $54 million at June 30, 2026, and December 31, 2025, respectively. Reductions in the allowance for credit losses for securities sold were immaterial for the three months ended June 30, 2026. Reductions in the allowance for credit losses for securities sold were $1 million for the six months ended June 30, 2026. Reductions in the allowance for credit losses for securities sold were $1 million for both the three and six months ended June 30, 2025.

There were 2,880 and 2,597 fixed-maturity investments in a total unrealized loss position of $479 million and $397 million at June 30, 2026, and December 31, 2025, respectively. Of those totals, 14 and 13 fixed-maturity securities had fair values below 70% of amortized cost at June 30, 2026, and December 31, 2025, respectively.