Investments

6 Months Ended

Jun. 30, 2026


Note 4			Investments


Portfolio composition
($ in millions)	June 30, 2026		December 31, 2025
Fixed income securities, at fair value	$	60,809	$	59,115
Equity securities, at fair value	11,159		8,398
Mortgage loans, net	842		879
Limited partnership interests	8,967		8,844
Short-term investments, at fair value	4,872		4,887
Other investments, net	1,153		1,114
Total	$	87,802	$	83,237


Amortized cost, gross unrealized gains (losses) and fair value for fixed income securities
($ in millions)	Amortized cost, net		Gross unrealized				Fair value
			Gains		Losses
June 30, 2026
U.S. government and agencies	$	12,442	$	12	$	(103)	$	12,351
Municipal	6,282		92		(40)		6,334
Corporate	36,452		310		(355)		36,407
Foreign government	1,626		13		(14)		1,625
Asset-backed securities (“ABS”)	1,976		7		(12)		1,971
Mortgage-backed securities (“MBS”)	2,124		11		(14)		2,121
Total fixed income securities	$	60,902	$	445	$	(538)	$	60,809

December 31, 2025
U.S. government and agencies	$	18,165	$	43	$	(75)	$	18,133
Municipal	5,617		87		(61)		5,643
Corporate	30,050		585		(234)		30,401
Foreign government	1,464		13		(17)		1,460
ABS	1,348		8		(4)		1,352
MBS	2,086		41		(1)		2,126
Total fixed income securities	$	58,730	$	777	$	(392)	$	59,115


Scheduled maturities for fixed income securities
($ in millions)	June 30, 2026				December 31, 2025
	Amortized cost, net		Fair value		Amortized cost, net		Fair value
Due in one year or less	$	1,599	$	1,597	$	1,464	$	1,460
Due after one year through five years	21,229		21,170		22,582		22,706
Due after five years through ten years	21,101		21,083		21,538		21,780
Due after ten years	12,873		12,867		9,712		9,691
	56,802		56,717		55,296		55,637
ABS and MBS	4,100		4,092		3,434		3,478
Total	$	60,902	$	60,809	$	58,730	$	59,115

Actual maturities may differ from those scheduled as a result of calls and make-whole payments by the issuers. ABS and MBS are shown separately because of potential prepayment of principal prior to contractual maturity dates.


Net investment income
($ in millions)	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025
Fixed income securities	$	710	$	602	$	1,376	$	1,210
Equity securities	54		17		95		37
Mortgage loans	12		9		24		19
Limited partnership interests	240		74		446		268
Short-term investments	48		97		107		169
Other investments	28		24		54		45
Investment income, before expense	1,092		823		2,102		1,748
Investment expense	(83)		(69)		(155)		(140)
Net investment income	$	1,009	$	754	$	1,947	$	1,608


Net gains (losses) on investments and derivatives by type
($ in millions)	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025
Fixed income securities	$	(117)	$	(250)	$	(116)	$	(378)
Equity securities	1,158		164		777		52
Mortgage loans	(3)		—		(3)		—
Limited partnership interests	20		13		4		8
Derivatives	(26)		(65)		(32)		(84)
Other investments (1)	23		(6)		20		(91)
Net gains (losses) on investments and derivatives	$	1,055	$	(144)	$	650	$	(493)

(1)2025 includes $67 million of losses related to variable interests in Adirondack Insurance Exchange (“Adirondack”) and New Jersey Skylands Insurance Association (“Skylands”) (together “Reciprocal Exchanges”).


Net gains (losses) on investments and derivatives by transaction type
($ in millions)	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025
Sales	$	(80)	$	(245)	$	(84)	$	(382)
Credit losses	(18)		(4)		(25)		(80)
Valuation change of equity investments (1)	1,179		170		791		53
Valuation change and settlements of derivatives	(26)		(65)		(32)		(84)
Net gains (losses) on investments and derivatives	$	1,055	$	(144)	$	650	$	(493)

(1)Includes valuation change of equity securities and certain limited partnership interests where the underlying assets are predominately public equity securities.


Gross realized gains (losses) on sales of fixed income securities
($ in millions)	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025
Gross realized gains	$	61	$	116	$	185	$	187
Gross realized losses	(178)		(367)		(301)		(565)


Net appreciation (decline) recognized in net income for assets that are still held
($ in millions)	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025
Equity securities	$	960	$	129	$	821	$	125
Limited partnership interests carried at fair value	(10)		(12)		(5)		(29)
Total	$	950	$	117	$	816	$	96


Credit losses recognized in net income
($ in millions)	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025
Fixed income securities:

Corporate	$	—	$	1	$	—	$	—


Total fixed income securities	—		1		—		—
Limited partnership interests	(7)		(4)		(14)		(4)
Mortgage loans	(3)		—		(3)		—

Other investments
Bank loans	(5)		(1)		(5)		(9)


Other assets	(3)		—		(3)		(52)
Commitments to fund line of credit, commercial mortgage loans and bank loans	—		—		—		(15)
Total	$	(18)	$	(4)	$	(25)	$	(80)


Unrealized net capital gains and losses included in accumulated other comprehensive income (“AOCI”)
($ in millions)	Fair value		Gross unrealized				Unrealized net gains (losses)
June 30, 2026			Gains		Losses
Fixed income securities	$	60,809	$	445	$	(538)	$	(93)
Short-term investments	4,872		—		(2)		(2)
Derivative instruments (1)	—		—		(2)		(2)


Unrealized net capital gains and losses, pre-tax							(97)

Deferred income taxes							18
Unrealized net capital gains and losses, after-tax							$	(79)

December 31, 2025
Fixed income securities	$	59,115	$	777	$	(392)	$	385
Short-term investments	4,887		—		(1)		(1)
Derivative instruments (1)	—		—		(2)		(2)


Unrealized net capital gains and losses, pre-tax							382

Deferred income taxes							(85)
Unrealized net capital gains and losses, after-tax							$	297

(1)Includes the effective portion of losses on terminated cash flow hedges.


Change in unrealized net capital gains (losses)
($ in millions)	Six months ended June 30, 2026
Fixed income securities	$	(478)
Short-term investments	(1)



Total	(479)

Deferred income taxes	103
Change in unrealized net capital gains and losses, after-tax	$	(376)

Mortgage loans consist of commercial mortgage loans collateralized by a variety of commercial real estate property types located across the United States, substantially all of which are non-recourse to the borrower, and residential mortgage loans secured by collateral that have recourse to the borrower.


Mortgage loans, net of credit allowance
($ in millions)	June 30, 2026		December 31, 2025
Commercial	$	548	$	619
Residential	294		260
Total	$	842	$	879

Limited partnership interests


Carrying value for limited partnership interests
($ in millions)	June 30, 2026		December 31, 2025
Private equity	$	7,092	$	7,247
Real estate	1,619		1,451
Other (1)	256		146
Total	$	8,967	$	8,844

(1)Other consists of certain limited partnership interests where the underlying assets are predominately public equity and debt securities.

Short-term investments, including money market funds, commercial paper, U.S. Treasury bills, fixed income securities with a contractual maturity of one year or less at time of acquisition and other short-term investments, are carried at fair value. As of June 30, 2026 and December 31, 2025, the fair value of short-term investments totaled $4.87 billion and $4.89 billion, respectively.

Other investments primarily consist of real estate, bank loans and derivatives. Real estate is carried at cost less accumulated depreciation. Bank loans are primarily senior secured corporate loans and are carried at amortized cost, net.


Other investments by asset type
($ in millions)	June 30, 2026		December 31, 2025
Real estate	$	575	$	630
Bank loans, net	564		473
Other	14		11
Total	$	1,153	$	1,114

Portfolio monitoring and credit losses

Fixed income securities The Company has a comprehensive portfolio monitoring process to identify and evaluate each fixed income security that may require a credit loss allowance.

For each fixed income security in an unrealized loss position, the Company assesses whether management with the appropriate authority has made the decision to sell or whether it is more likely than not the Company will be required to sell the security before recovery of the amortized cost basis for reasons such as liquidity, contractual or regulatory purposes. If a security meets either of these criteria, any existing credit loss allowance would be written off against the amortized cost basis of the asset along with any remaining unrealized losses, with incremental losses recorded in earnings.

If the Company has not made the decision to sell the fixed income security and it is not more likely than not the Company will be required to sell the fixed income security before recovery of its amortized cost basis, the Company evaluates whether it expects to receive cash flows sufficient to recover the entire amortized cost basis of the security. The Company calculates the estimated recovery value based on the best estimate of future cash flows considering past events, current conditions and reasonable and supportable forecasts. The estimated future cash flows are discounted at the security’s current effective rate and is compared to the amortized cost of the security.

The determination of cash flow estimates is inherently subjective, and methodologies may vary depending on facts and circumstances specific to the security. All reasonably available information relevant to the collectability of the security is considered when

developing the estimate of cash flows expected to be collected. That information generally includes, but is not limited to, the remaining payment terms of the security, prepayment speeds, the financial condition and future earnings potential of the issue or issuer, expected defaults, expected recoveries, the value of underlying collateral, origination vintage year, geographic concentration of underlying collateral, available reserves or escrows, current subordination levels, third-party guarantees and other credit enhancements. Other information, such as industry analyst reports and forecasts, credit ratings and other market data relevant to the realizability of contractual cash flows, may also be considered. The estimated fair value of collateral will be used to estimate recovery value if the Company determines that the security is dependent on the liquidation of collateral for ultimate settlement.

If the Company does not expect to receive cash flows sufficient to recover the entire amortized cost basis of the fixed income security, a credit loss allowance is recorded in earnings for the shortfall in expected cash flows; however, the amortized cost, net of the credit loss allowance, may not be lower than the fair value of the security. The portion of the unrealized loss related to factors other than credit remains classified in AOCI. If the Company determines that the fixed income security does not have sufficient cash flow or other information to estimate a recovery value for the security, the Company may conclude that the entire decline in fair value is deemed to be credit related and the loss is recorded in earnings.

When a security is sold or otherwise disposed or when the security is deemed uncollectible and written off, the Company reduces the credit loss allowance.

Recoveries after write-offs are recognized when received.

Accrued interest excluded from the amortized cost of fixed income securities totaled $689 million and $662 million as of June 30, 2026 and December 31, 2025, respectively, and is reported within the accrued investment income line of the Condensed Consolidated Statements of Financial Position. The Company monitors accrued interest and writes off amounts when they are not expected to be received.

The Company’s portfolio monitoring process includes a quarterly review of all securities to identify instances where the fair value of a security compared to its amortized cost is below internally established thresholds. The process also includes the monitoring of other credit loss indicators such as ratings, ratings downgrades and payment defaults. The securities identified, in addition to other securities for which the

Company may have a concern, are evaluated for potential credit losses using all reasonably available information relevant to the collectability or recovery of the security. Inherent in the Company’s evaluation of credit losses for these securities are assumptions and estimates about the financial condition and future earnings potential of the issue or issuer. Some of the factors that may be considered in evaluating whether a decline in fair value requires a credit loss allowance are: 1) the financial condition, near-term and long-term prospects of the issue or issuer, including relevant industry specific market conditions and trends, geographic location and implications of rating agency actions and offering prices; 2) the specific reasons that a security is in an unrealized loss position, including overall market conditions which could affect liquidity; and 3) the extent to which the fair value has been less than amortized cost.


Rollforward of credit loss allowance for fixed income securities
	Three months ended June 30,				Six months ended June 30,
($ in millions)	2026		2025		2026		2025
Beginning balance	$	(10)	$	(18)	$	(10)	$	(17)
Credit losses on securities for which credit losses not previously reported	—		—		—		(1)
Net (increases) decreases related to credit losses previously reported	—		1		—		1

Write-offs	—		—		—		—

Ending balance	$	(10)	$	(17)	$	(10)	$	(17)

Components of credit loss allowance as of June 30

Corporate bonds					(8)		(16)
ABS					(2)		(1)

Total					$	(10)	$	(17)


Gross unrealized losses and fair value by type and length of time held in a continuous unrealized loss position (1)
($ in millions)	Less than 12 months					12 months or more					Total unrealized losses
	Number of issues	Fair value		Unrealized losses		Number of issues	Fair value		Unrealized losses
June 30, 2026
Fixed income securities
U.S. government and agencies	139	$	9,622	$	(101)	23	$	65	$	(2)	$	(103)
Municipal	144	970		(5)		385	880		(35)		(40)
Corporate	1,400	17,274		(219)		434	2,026		(136)		(355)
Foreign government	52	536		(5)		66	79		(9)		(14)
ABS	369	1,227		(10)		15	50		(2)		(12)
MBS	102	1,443		(14)		58	2		—		(14)
Total fixed income securities	2,206	$	31,072	$	(354)	981	$	3,102	$	(184)	$	(538)
Investment grade fixed income securities	1,947	$	29,491	$	(320)	876	$	2,665	$	(160)	$	(480)
Below investment grade fixed income securities	259	1,581		(34)		105	437		(24)		(58)
Total fixed income securities	2,206	$	31,072	$	(354)	981	$	3,102	$	(184)	$	(538)

December 31, 2025
Fixed income securities
U.S. government and agencies	74	$	11,840	$	(72)	54	$	209	$	(3)	$	(75)
Municipal	106	640		(6)		527	1,423		(55)		(61)
Corporate	530	3,933		(49)		640	3,677		(185)		(234)
Foreign government	77	553		(9)		53	40		(8)		(17)
ABS	58	205		(2)		12	42		(2)		(4)
MBS	29	246		(1)		59	3		—		(1)
Total fixed income securities	874	$	17,417	$	(139)	1,345	$	5,394	$	(253)	$	(392)
Investment grade fixed income securities	694	$	16,899	$	(123)	1,212	$	4,793	$	(229)	$	(352)
Below investment grade fixed income securities	180	518		(16)		133	601		(24)		(40)
Total fixed income securities	874	$	17,417	$	(139)	1,345	$	5,394	$	(253)	$	(392)

(1)Includes fixed income securities with credit loss allowances; fair values of $23 million and $11 million, unrealized losses of $3 million and $2 million, and credit loss allowances of $1 million and $1 million as of June 30, 2026 and December 31, 2025, respectively.


Gross unrealized losses by unrealized loss position and credit quality as of June 30, 2026
($ in millions)	Investment grade		Below investment grade		Total
Fixed income securities with unrealized loss position less than 20% of amortized cost, net (1)	$	(458)	$	(54)	$	(512)
Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost, net (2)	(22)		(4)		(26)
Total unrealized losses	$	(480)	$	(58)	$	(538)

(1)Related to securities with an unrealized loss position less than 20% of amortized cost, net, the degree of which suggests that these securities do not pose a high risk of having credit losses.

(2)Evaluated based on factors such as discounted cash flows and the financial condition and near-term and long-term prospects of the issue or issuer and were determined to have adequate resources to fulfill contractual obligations.

Investment grade is defined as a security having a National Association of Insurance Commissioners (“NAIC”) designation of 1 or 2, which is comparable to a rating of Aaa, Aa, A or Baa from Moody’s Investors Service (“Moody’s”) or AAA, AA, A or BBB from S&P Global Ratings (“S&P”), or a comparable internal rating if an externally provided rating is not available. Market prices for certain securities may have credit spreads which imply higher or lower credit quality than the current third-party rating. Unrealized losses on investment grade securities are principally related to an increase in market yields which may include increased risk-free interest rates or wider credit spreads since the time of initial purchase. The

unrealized losses are expected to reverse as the securities approach maturity.

ABS and MBS in an unrealized loss position were evaluated based on actual and projected collateral losses relative to the securities’ positions in the respective securitization trusts, security specific expectations of cash flows, and credit ratings. This evaluation also takes into consideration credit enhancement, measured in terms of (i) subordination from other classes of securities in the trust that are contractually obligated to absorb losses before the class of security the Company owns, and (ii) the expected impact of other structural features embedded in the securitization trust beneficial to the

class of securities the Company owns, such as overcollateralization and excess spread. Municipal bonds in an unrealized loss position were evaluated based on the underlying credit quality of the primary obligor, obligation type and quality of the underlying assets.

As of June 30, 2026, the Company has not made the decision to sell and it is not more likely than not the Company will be required to sell fixed income securities with unrealized losses before recovery of the amortized cost basis.

Loans The Company establishes a credit loss allowance for mortgage loans and bank loans when they are originated or purchased, and for unfunded commitments unless they are unconditionally cancellable by the Company. The Company uses a probability of default and loss given default model for mortgage loans and bank loans to estimate current expected credit losses that considers all relevant information available including past events, current conditions, and reasonable and supportable forecasts over the life of an asset. The Company also considers such factors as historical losses, expected prepayments and various economic factors. For mortgage loans, the Company considers origination vintage year and property level information such as debt service coverage, property type, property location and collateral value. For bank loans, the Company considers the credit rating of the borrower, credit spreads and type of loan. After the reasonable and supportable forecast period, the Company’s model reverts to historical loss trends.

Loans are evaluated on a pooled basis when they share similar risk characteristics. The Company monitors loans through a quarterly credit monitoring process to determine when they no longer share similar risk characteristics and are to be evaluated individually when estimating credit losses.

Loans are written off against their corresponding allowances when there is no reasonable expectation of recovery. If a loan recovers after a write-off, the estimate of expected credit losses includes the expected recovery.

Accrual of income is suspended for loans that are in default or when full and timely collection of principal and interest payments is not probable. Accrued income receivable is monitored for recoverability and when not expected to be collected is written off

through net investment income. Cash receipts on loans on non-accrual status are generally recorded as a reduction of amortized cost.

Mortgage loans When it is determined a mortgage loan shall be evaluated individually, the Company uses various methods to estimate credit losses on individual loans such as using collateral value less estimated costs to sell where applicable, including when foreclosure is probable or when repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. When collateral value is used, the mortgage loans may not have a credit loss allowance when the fair value of the collateral exceeds the loan’s amortized cost. An alternative approach may be utilized to estimate credit losses using the present value of the loan’s expected future repayment cash flows discounted at the loan’s current effective interest rate. Individual loan credit loss allowances are adjusted for subsequent changes in the fair value of the collateral less costs to sell, when applicable, or present value of the loan’s expected future repayment cash flows.

Debt service coverage ratio is considered a key credit quality indicator when commercial mortgage loan credit loss allowances are estimated. Debt service coverage ratio represents the amount of estimated cash flow from the property available to the borrower to meet principal and interest payment obligations. Debt service coverage ratio estimates are updated annually or more frequently if conditions are warranted based on the Company’s credit monitoring process.

If the debt service coverage ratio is below 1.0 and the borrower has the financial capacity to fund the revenue shortfalls from the properties for the foreseeable term, the decrease in cash flows from the properties is considered temporary, or there are other risk mitigating circumstances such as additional collateral, escrow balances or borrower guarantees, the commercial loans may not be considered impaired.

Residential mortgage loans primarily include fixed-rate, amortizing mortgage loans on rental properties owned by borrowers with credit scores typically considered prime or above. The primary credit quality indicator is whether a loan is performing or nonperforming. The Company defines nonperforming residential mortgage loans as those that are 90 days or more past due and/or in nonaccrual status.


Commercial mortgage loans amortized cost by debt service coverage ratio distribution and year of origination
	June 30, 2026														December 31, 2025
($ in millions)	2021 and prior		2022		2023		2024		2025		2026		Total		Total

1.0 - 1.25	$	10	$	—	$	—	$	33	$	—	$	—	$	43	$	71
1.26 - 1.50	34		—		29		—		—		—		63		95
Above 1.50	339		71		27		15		—		—		452		462
Amortized cost before allowance	$	383	$	71	$	56	$	48	$	—	$	—	$	558	$	628
Allowance													(10)		(9)
Amortized cost, net													$	548	$	619


Payment status of mortgage loans
($ in millions)	Commercial		Residential		Total
June 30, 2026
Less than 90 days past due	$	—	$	1	$	1
90 days or greater past due	—		3		3
Total past due before allowance	—		4		4
Current before allowance	558		293		851
Total mortgage loans before allowance	558		297		855
Allowance	(10)		(3)		(13)
Total mortgage loans	$	548	$	294	$	842

December 31, 2025
Less than 90 days past due	$	—	$	2	$	2
90 days or greater past due	—		2		2
Total past due before allowance	—		4		4
Current before allowance	628		257		885
Total mortgage loans before allowance	628		261		889
Allowance	(9)		(1)		(10)
Total mortgage loans	$	619	$	260	$	879


Rollforward of credit loss allowance for mortgage loans
	Three months ended June 30,				Six months ended June 30,
($ in millions)	2026		2025		2026		2025
Beginning balance	$	(10)	$	(12)	$	(10)	$	(12)

Net increases related to credit losses	(3)		—		(3)		—
Write-offs	—		—		—		—


Ending balance	$	(13)	$	(12)	$	(13)	$	(12)

Components of credit loss allowance as of June 30
Commercial					$	(10)	$	(11)
Residential					(3)		(1)
Total					$	(13)	$	(12)

Bank loans When it is determined a bank loan shall be evaluated individually, the Company uses various methods to estimate credit losses on individual loans such as the present value of the loan’s expected future repayment cash flows discounted at the loan’s current effective interest rate.

Credit ratings of the borrower are considered a key credit quality indicator when bank loan credit loss

allowances are estimated. The ratings are either received from the Securities Valuation Office of the NAIC based on availability of applicable ratings from rating agencies on the NAIC credit rating provider list or a comparable internal rating. The year of origination is determined to be the year in which the asset is acquired.


Bank loans amortized cost by credit rating and year of origination
	June 30, 2026														December 31, 2025
($ in millions)	2021 and prior		2022		2023		2024		2025		2026		Total		Total
NAIC 1 / A	$	—	$	—	$	—	$	43	$	134	$	40	$	217	$	199
NAIC 2 / BBB	—		—		—		1		141		80		222		144
NAIC 3 / BB	—		—		2		4		6		16		28		23
NAIC 4 / B	2		—		20		12		31		37		102		106
NAIC 5-6 / CCC and below	—		1		7		1		—		7		16		18
Amortized cost before allowance	$	2	$	1	$	29	$	61	$	312	$	180	$	585	$	490
Allowance													(21)		(17)
Amortized cost, net													$	564	$	473


Rollforward of credit loss allowance for bank loans
($ in millions)	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025
Beginning balance	$	(16)	$	(16)	$	(17)	$	(10)

Net increases related to credit losses	(5)		(1)		(5)		(9)

Write-offs	—		—		1		2

Ending balance	$	(21)	$	(17)	$	(21)	$	(17)