v3.26.1
Investments (Tables)
 6 Months Ended
Jun. 30, 2026
Investments, Debt and Equity Securities [Abstract]  
Marketable Securities
Investment Portfolio
Carrying Value
As of
June 30, 2026December 31, 2025
(in millions)
Fixed-maturity securities, available-for-sale$6,817 $6,369 
Fixed-maturity securities, trading131 124 
Short-term investments792 903 
Other invested assets:
Equity method investments:
Ownership interest in Sound Point398 415 
Funds and other investments676 664 
Other (1)116 12 
Total (2)$8,930 $8,487 
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(1)    The June 30, 2026 balance consists primarily of loans issued by a U.K. regulated utility and a U.S. infrastructure project to which the Company has insured exposure.
(2)    In the investment portfolio, the aggregate carrying value of Sound Point managed investments was $548 million and $628 million as of June 30, 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 June 30, 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 subdivisions21 %$1,523 $(13)$30 $(71)$1,469 
U.S. government and agencies1 49 — 1 (5)45 
Corporate securities (2)
50 3,556 (7)35 (145)3,439 
Mortgage-backed securities (3):
RMBS11 781 (28)6 (33)726 
Commercial mortgage-backed securities (CMBS)4 284 — 1 (3)282 
Asset-backed securities:
CLOs7 485 (24)3 (63)401 
Other (4)3 238 — 3 (1)240 
Non-U.S. government securities3 231 — 1 (17)215 
Total available-for-sale fixed-maturity securities100 %$7,147 $(72)$80 $(338)$6,817 
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 
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(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 71% and 75% of mortgage-backed securities as of June 30, 2026 and December 31, 2025, respectively, based on fair value.
(4)This category includes an investment in an affiliated entity with amortized cost of $59 million and $53 million as of June 30, 2026 and December 31, 2025, respectively, and fair value of $62 million and $54 million as of June 30, 2026 and December 31, 2025, respectively.
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 June 30, 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$285 $(3)$499 $(68)$784 $(71)
U.S. government and agencies24 — 5 (5)29 (5)
Corporate securities1,411 (29)558 (87)1,969 (116)
Mortgage-backed securities:
RMBS179 (1)91 (6)270 (7)
CMBS146 (2)48 (1)194 (3)
Asset-backed securities:
CLOs81 (3)20 — 101 (3)
Other68 (1)9 — 77 (1)
Non-U.S. government securities164 (9)19 (8)183 (17)
Total$2,358 $(48)$1,249 $(175)$3,607 $(223)
Number of securities (1)725 646 1,349 
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 
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(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 June 30, 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 June 30, 2026
Amortized
Cost		Estimated
Fair Value
(in millions)
Due within one year$178 $182 
Due after one year through five years1,371 1,354 
Due after five years through 10 years2,169 2,091 
Due after 10 years2,364 2,182 
Mortgage-backed securities:
RMBS781 726 
CMBS284 282 
Total$7,147 $6,817 
Net Investment Income
The components of income derived from the investment portfolio are presented in the following tables.

Income from Investments
Second QuarterSix Months
2026202520262025
(in millions)
Investment income:
Fixed-maturity securities, available-for-sale (1)$91 $77 $176 $151 
Short-term investments8 12 16 25 
Other invested assets1 1 2 2 
Investment income100 90 194 178 
Investment expenses(2)(1)(4)(2)
Net investment income$98 $89 $190 $176 
Fair value gains (losses) on trading securities (2)$7 $2 $13 $3 
Equity in earnings (losses) of investees:
Ownership interest in Sound Point$(5)$(1)$1 $12 
Funds and other investments(6)4 19 44 
Equity in earnings (losses) of investees$(11)$3 $20 $56 
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(1)    Amounts include $3 million, $7 million, $6 million and $14 million of investment income on Loss Mitigation Securities for second quarter 2026, second quarter 2025, six months 2026 and six months 2025, respectively.
(2)    Fair value gains on trading securities pertaining to securities still held as of June 30, 2026 were $7 million for second quarter 2026 and $12 million for six months 2026. Fair value gains on trading securities pertaining to securities still held as of June 30, 2025 were $2 million for second quarter 2025 and $3 million for six months 2025.
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)
Second QuarterSix Months
2026202520262025
(in millions)
Gross realized gains on sales of available-for-sale securities$3 $1 $5 $4 
Gross realized losses on sales of available-for-sale securities(5)(1)(7)(9)
Net foreign currency gains (losses)— — 1 (1)
Change in the allowance for credit losses and intent to sell (1)(9)(3)(25)(13)
Other net realized gains (losses)1 (3)1 (3)
Net realized investment gains (losses)$(10)$(6)$(25)$(22)
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(1)    The change in the allowance for credit losses for second quarter 2026, second quarter 2025 and six months 2026 was primarily related to CLO equity tranches. The change in the allowance for credit losses for six months 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
Second QuarterSix Months
2026202520262025
(in millions)
Balance, beginning of period$63 $45 $54 $60 
Additions for securities for which credit losses were not previously recognized1 3 12 3 
Additions (reductions) for securities for which credit losses were previously recognized8 (1)13 9 
Write-offs charged against the allowance— — (7)(25)
Balance, end of period$72 $47 $72 $47