v3.26.1
Investments
 6 Months Ended
Jun. 30, 2026
Investments, Debt and Equity Securities [Abstract]  
Investments INVESTMENTS
The following tables present the composition of our investment portfolio by major security type:
($ in millions)CostGross
Unrealized
Gains		Gross
Unrealized
Losses		Net
Holding
Period
Gains
(Losses)		Fair
Value		% of
Total
Fair
Value
June 30, 2026
Available-for-sale securities:
Fixed maturities:
U.S. government$44,463 $52 $(734)$0 $43,781 45.0 %
State and local government3,904 10 (62)0 3,852 4.0 
Foreign government16 0 0 0 16 0 
Corporate and other debt21,641 86 (139)3 21,591 22.2 
Residential mortgage-backed4,291 14 (23)0 4,282 4.4 
Commercial mortgage-backed7,674 8 (229)0 7,453 7.7 
Other asset-backed9,496 7 (43)0 9,460 9.7 
Total fixed maturities91,485 177 (1,230)3 90,435 93.0 
Short-term investments1,978 0 0 0 1,978 2.0 
Total available-for-sale securities93,463 177 (1,230)3 92,413 95.0 
Equity securities:
Nonredeemable preferred stocks292 0 0 (16)276 0.3 
Common equities870 0 0 3,662 4,532 4.7 
Total equity securities1,162 0 0 3,646 4,808 5.0 
Total portfolio1
$94,625 $177 $(1,230)$3,649 $97,221 100.0 %
($ in millions)CostGross
Unrealized
Gains		Gross
Unrealized
Losses		Net
Holding
Period
Gains
(Losses)		Fair
Value		% of
Total
Fair
Value
June 30, 2025
Available-for-sale securities:
Fixed maturities:
U.S. government$46,684 $598 $(472)$0 $46,810 52.8 %
State and local government3,030 12 (78)0 2,964 3.3 
Foreign government17 0 0 0 17 0 
Corporate and other debt18,004 222 (112)8 18,122 20.5 
Residential mortgage-backed2,644 21 (7)2 2,660 3.0 
Commercial mortgage-backed5,325 10 (286)0 5,049 5.7 
Other asset-backed6,668 26 (44)0 6,650 7.5 
Total fixed maturities82,372 889 (999)10 82,272 92.8 
Short-term investments2,103 0 0 0 2,103 2.4 
Total available-for-sale securities84,475 889 (999)10 84,375 95.2 
Equity securities:
Nonredeemable preferred stocks517 0 0 (17)500 0.6 
Common equities775 0 0 2,960 3,735 4.2 
Total equity securities1,292 0 0 2,943 4,235 4.8 
Total portfolio1
$85,767 $889 $(999)$2,953 $88,610 100.0 %
($ in millions)CostGross
Unrealized
Gains		Gross
Unrealized
Losses		Net
Holding
Period
Gains
(Losses)		Fair
Value		% of
Total
Fair
Value
December 31, 2025
Available-for-sale securities:
Fixed maturities:
U.S. government$43,114 $541 $(357)$0 $43,298 44.5 %
State and local government3,342 19 (58)0 3,303 3.4 
Foreign government17 0 0 0 17 0 
Corporate and other debt19,773 273 (68)13 19,991 20.5 
Residential mortgage-backed3,152 28 (6)1 3,175 3.3 
Commercial mortgage-backed6,194 12 (233)0 5,973 6.1 
Other asset-backed7,112 28 (31)0 7,109 7.3 
Total fixed maturities82,704 901 (753)14 82,866 85.1 
Short-term investments10,005 0 0 0 10,005 10.3 
Total available-for-sale securities92,709 901 (753)14 92,871 95.4 
Equity securities:
Nonredeemable preferred stocks419 0 0 (15)404 0.4 
Common equities819 0 0 3,279 4,098 4.2 
Total equity securities1,238 0 0 3,264 4,502 4.6 
Total portfolio1
$93,947 $901 $(753)$3,278 $97,373 100.0 %
1 At June 30, 2026 and 2025, and December 31, 2025, we had $568 million, $303 million, and $200 million, respectively, of net unsettled security transactions included in accounts payable, accrued expenses, and other liabilities on our consolidated balance sheets.
The total fair value of the portfolio at June 30, 2026 and 2025, and December 31, 2025, included $6.7 billion, $5.0 billion, and $13.0 billion, respectively, of securities held in a consolidated, non-insurance subsidiary of the holding company, net of unsettled security transactions. A portion of the investments held at December 31, 2025, were sold and proceeds were used to pay our common share dividends in January 2026; see Note 10 – Dividends for additional information.
At June 30, 2026, securities in the principal amount of $881 million were on deposit to meet state insurance and other regulatory requirements. We did not hold any securities of any one issuer, excluding U.S. government securities, with an aggregate cost or fair value exceeding 10% of total shareholders’ equity at June 30, 2026 or 2025, or December 31, 2025. At June 30, 2026, we did not hold any debt securities that were non-income producing during the preceding 12 months.
Hybrid Securities Certain securities in our fixed-maturity portfolio are accounted for as hybrid securities because they contain embedded derivatives that are not deemed to be clearly and closely related to the host investments. These securities are reported at fair value:
June 30,
(millions)20262025December 31, 2025
Fixed Maturities:
Corporate and other debt$693 $731 $733 
Residential mortgage-backed827 615 792 
Total hybrid securities$1,520 $1,346 $1,525 
Since the embedded derivatives (e.g., change-in-control put option, debt-to-equity conversion, or any other feature unrelated to the credit quality or risk of default of the issuer that could impact the amount or timing of our expected future cash flows) do not have observable intrinsic values, we use the fair value option to record the changes in fair value of these securities through income as a component of net realized gains (losses).
Fixed Maturities The following table details the composition of fixed maturities by maturity at June 30, 2026:
(millions)CostFair Value
Less than one year$11,419 $11,396 
One to five years47,762 47,152 
Five to ten years31,885 31,468 
Ten years or greater419 419 
Total$91,485 $90,435 

Securities are classified in the maturity distribution table based upon their projected cash flows. Contractual maturities may differ from expected cash flows because the issuers of the securities may have the right to call or prepay obligations.
Gross Unrealized Losses The following tables show the composition of gross unrealized losses by major security type and by the length of time that individual securities have been in a continuous unrealized loss position:
Total No. of Sec.Total
Fair
Value		Gross
Unrealized
Losses		Less than 12 Months12 Months or Greater
($ in millions)No. of Sec.Fair
Value		Gross Unrealized
Losses		No. of Sec.Fair
 Value		Gross Unrealized
Losses
June 30, 2026
U.S. government91 $37,839 $(734)51 $32,644 $(400)40 $5,195 $(334)
State and local government351 2,239 (62)188 1,174 (9)163 1,065 (53)
Corporate and other debt379 10,640 (139)305 8,825 (83)74 1,815 (56)
Residential mortgage-backed79 1,997 (23)61 1,946 (17)18 51 (6)
Commercial mortgage-backed160 4,222 (229)51 1,831 (7)109 2,391 (222)
Other asset-backed164 5,222 (43)132 4,471 (18)32 751 (25)
Total fixed maturities1,224 $62,159 $(1,230)788 $50,891 $(534)436 $11,268 $(696)
Total No. of Sec.Total
Fair
Value		Gross
Unrealized
Losses		Less than 12 Months12 Months or Greater
($ in millions)No. of Sec.Fair
Value		Gross Unrealized
Losses		No. of Sec.Fair
 Value		Gross Unrealized
Losses
June 30, 2025
U.S. government73 $10,463 $(472)9 $2,878 $(20)64 $7,585 $(452)
State and local government275 1,677 (78)53 289 (1)222 1,388 (77)
Corporate and other debt159 3,737 (112)28 610 (6)131 3,127 (106)
Residential mortgage-backed29 385 (7)11 342 (2)18 43 (5)
Commercial mortgage-backed153 3,331 (286)16 448 (2)137 2,883 (284)
Other asset-backed79 1,797 (44)40 880 (2)39 917 (42)
Total fixed maturities768 $21,390 $(999)157 $5,447 $(33)611 $15,943 $(966)
Total No. of Sec.Total
Fair
Value		Gross
Unrealized
Losses		Less than 12 Months12 Months or Greater
($ in millions)No. of Sec.Fair
Value		Gross Unrealized
Losses		No. of Sec.Fair
 Value		Gross Unrealized
Losses
December 31, 2025
U.S. government62 $17,402 $(357)8 $11,327 $(54)54 $6,075 $(303)
State and local government252 1,589 (58)60 318 (1)192 1,271 (57)
Corporate and other debt141 3,821 (68)36 1,177 (5)105 2,644 (63)
Residential mortgage-backed30 293 (6)12 233 (1)18 60 (5)
Commercial mortgage-backed147 3,551 (233)34 1,210 (3)113 2,341 (230)
Other asset-backed64 1,924 (31)32 1,148 (3)32 776 (28)
Total fixed maturities696 $28,580 $(753)182 $15,413 $(67)514 $13,167 $(686)
A review of the securities in an unrealized loss position indicated that, at the end of each period presented, the issuers were current with respect to their interest obligations and that there was no evidence of deterioration of the current cash flow projections that would indicate we would not receive the remaining principal at maturity.
Allowance For Credit and Uncollectible Losses We are required to measure the amount of potential credit losses for all fixed-maturity securities in an unrealized loss position. We did not record any allowances for credit losses or any write-offs for credit losses deemed to be uncollectible during the first six months of 2026 or 2025, and did not have a material credit loss allowance balance as of June 30, 2026 and 2025, or December 31, 2025. No unrealized loss write offs were recorded during the six months ended June 30, 2026 or 2025.
As of June 30, 2026 and 2025, and December 31, 2025, we believe that none of the unrealized losses on our fixed-maturity securities were related to material credit losses on any specific securities, or in the aggregate. We continue to expect all the securities in our fixed-maturity portfolio will pay their principal and interest obligations.
In addition, we reviewed the accrued investment income on securities in an unrealized loss position at June 30, 2026 and 2025, and December 31, 2025, to determine if the accrued interest amounts were uncollectible. Based on our analysis, we believe the issuers have sufficient liquidity and capital reserves to meet their current interest and future principal obligations and, therefore, did not write off any accrued income as uncollectible at June 30, 2026 and 2025, or December 31, 2025.
Realized Gains (Losses) The following table details the components of net realized gains (losses) for the three and six months ended June 30:
Three MonthsSix Months
(millions)2026202520262025
Gross realized gains on security sales
Available-for-sale securities:
U.S. government$51 $24 $150 $77 
State and local government0 0 1 0 
Corporate and other debt9 2 35 3 
Residential mortgage-backed0 1 1 1 
Total available-for-sale securities60 27 187 81 
Equity securities:
Nonredeemable preferred stocks2 0 10 2 
Common equities23 4 36 39 
Total equity securities25 4 46 41 
Subtotal gross realized gains on security sales85 31 233 122 
Gross realized losses on security sales
Available-for-sale securities:
U.S. government(49)(1)(85)(78)
State and local government(4)0 (4)(2)
Corporate and other debt(6)(2)(11)(3)
Commercial mortgage-backed0 (6)0 (10)
Total available-for-sale securities(59)(9)(100)(93)
Equity securities:
Nonredeemable preferred stocks(3)(3)(8)(5)
Common equities(7)0 (13)(4)
Total equity securities(10)(3)(21)(9)
Subtotal gross realized losses on security sales(69)(12)(121)(102)
Net realized gains (losses) on security sales
Available-for-sale securities:
U.S. government2 23 65 (1)
State and local government(4)0 (3)(2)
Corporate and other debt3 0 24 0 
Residential mortgage-backed0 1 1 1 
Commercial mortgage-backed0 (6)0 (10)
Total available-for-sale securities1 18 87 (12)
Equity securities:
Nonredeemable preferred stocks(1)(3)2 (3)
Common equities16 4 23 35 
Total equity securities15 1 25 32 
Subtotal net realized gains (losses) on security sales16 19 112 20 
Net holding period gains (losses)
Hybrid securities17 11 (10)14 
Equity securities571 357 382 141 
Subtotal net holding period gains (losses)588 368 372 155 
Total net realized gains (losses) on securities$604 $387 $484 $175 
During the second quarter and first six months of 2026 and 2025, the majority of our security sales were U.S. government securities that were sold for duration management. We also selectively sold securities that we viewed as having less attractive risk/reward profiles during the second quarter and first six months of 2026 and 2025.
The following table reflects our holding period realized gains (losses) recognized on equity securities held at the three and six months ended June 30:
Three MonthsSix Months
(millions)2026202520262025
Total net gains (losses) recognized during the period on equity securities$586 $358 $407 $173 
Less: Net gains (losses) recognized on equity securities sold during the period15 1 25 32 
Net holding period gains (losses) recognized during the period on equity securities held at period end$571 $357 $382 $141 

Net Investment Income The following table details the components of net investment income for the three and six months ended June 30:
Three MonthsSix Months
(millions)2026202520262025
Available-for-sale securities:
Fixed maturities:
U.S. government$433 $422 $833 $844 
State and local government27 21 51 40 
Corporate and other debt253 208 488 379 
Residential mortgage-backed54 32 93 57 
Commercial mortgage-backed83 59 154 112 
Other asset-backed100 84 187 168 
Total fixed maturities950 826 1,806 1,600 
Short-term investments16 28 60 46 
Total available-for-sale securities966 854 1,866 1,646 
Equity securities:
Nonredeemable preferred stocks2 5 6 13 
Common equities11 12 24 26 
Total equity securities13 17 30 39 
Investment income979 871 1,896 1,685 
Investment expenses(10)(9)(18)(16)
Net investment income$969 $862 $1,878 $1,669 
On a year-over-year basis, investment income (interest and dividends) increased 12% and 13% for the three and six months ended June 30, 2026, respectively, compared to the same periods last year. The increases primarily reflect growth in invested assets.