INVESTMENTS (Tables)
|
6 Months Ended |
Jun. 30, 2026 |
|---|
| Investments, Debt and Equity Securities [Abstract] |
|
| Schedule of Amortized Cost, Allowance for Credit Losses, Gross Unrealized Appreciation/(Depreciation) and Fair Value of Fixed Maturity Securities |
The tables below present the amortized cost, allowance for credit losses, gross unrealized appreciation/(depreciation) (“URA(D)”) and fair value of fixed maturity securities - available for sale for the periods indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | At June 30, 2026 | | (Dollars in millions) | Amortized
Cost | | Allowance for
Credit Losses | | Unrealized
Appreciation | | Unrealized
Depreciation | | Fair
Value | Fixed maturity securities - available for sale | | | | | | | | | | | U.S. Treasury securities and obligations of | | | | | | | | | | U.S. government agencies and corporations | $ | 294 | | | $ | — | | | $ | — | | | $ | (6) | | | $ | 288 | | Tax-exempt obligations of U.S. states and political subdivisions | 40 | | | — | | | — | | | (4) | | | 37 | | | Corporate securities | 6,367 | | | (39) | | | 61 | | | (119) | | | 6,270 | | | Asset-backed securities | 4,604 | | | (25) | | | 6 | | | (27) | | | 4,558 | | | Mortgage-backed securities | | | | | | | | | | | Agency commercial | 403 | | | — | | | 5 | | | (3) | | | 405 | | | Non-agency commercial | 841 | | | — | | | 1 | | | (24) | | | 818 | | | Agency residential | 3,655 | | | — | | | 34 | | | (108) | | | 3,581 | | | Non-agency residential | 1,658 | | | — | | | 12 | | | (9) | | | 1,661 | | | Foreign government securities | 1,068 | | | — | | | 11 | | | (38) | | | 1,041 | | | Foreign corporate securities | 2,521 | | | — | | | 35 | | | (61) | | | 2,494 | | | Total fixed maturity securities - available for sale | $ | 21,451 | | | $ | (64) | | | $ | 164 | | | $ | (399) | | | $ | 21,152 | |
(Some amounts may not reconcile due to rounding.) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | At December 31, 2025 | | (Dollars in millions) | Amortized
Cost | | Allowance for
Credit Losses | | Unrealized
Appreciation | | Unrealized
Depreciation | | Fair
Value | | Fixed maturity securities - available for sale | | | | | | | | | | | U.S. Treasury securities and obligations of | | | | | | | | | | U.S. government agencies and corporations | $ | 292 | | | $ | — | | | $ | — | | | $ | (5) | | | $ | 287 | | | Tax-exempt obligations of U.S. states and political subdivisions | 45 | | | — | | | — | | | (4) | | | 41 | | | Corporate securities | 6,315 | | | (54) | | | 138 | | | (98) | | | 6,301 | | | Asset-backed securities | 4,571 | | | (14) | | | 12 | | | (15) | | | 4,554 | | | Mortgage-backed securities | | | | | | | | | | | Agency commercial | 404 | | | — | | | 9 | | | (2) | | | 412 | | | Non-agency commercial | 739 | | | — | | | 1 | | | (22) | | | 718 | | | Agency residential | 3,794 | | | — | | | 67 | | | (95) | | | 3,766 | | | Non-agency residential | 1,557 | | | — | | | 31 | | | (1) | | | 1,587 | | | Foreign government securities | 1,041 | | | — | | | 18 | | | (29) | | | 1,030 | | | Foreign corporate securities | 2,274 | | | — | | | 60 | | | (50) | | | 2,284 | | | Total fixed maturity securities - available for sale | $ | 21,032 | | | $ | (68) | | | $ | 337 | | | $ | (322) | | | $ | 20,978 | |
(Some amounts may not reconcile due to rounding.) The following tables show amortized cost, allowance for credit losses, gross URA(D) and fair value of fixed maturity securities - held to maturity for the periods indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | At June 30, 2026 | | (Dollars in millions) | Amortized
Cost | | Allowance for
Credit Losses | | Unrealized
Appreciation | | Unrealized
Depreciation | | Fair
Value | | Fixed maturity securities – held to maturity | | | | | | | | | | | Corporate securities | $ | 180 | | | $ | (2) | | | $ | 1 | | | $ | (3) | | | $ | 176 | | | Asset-backed securities | 318 | | | (5) | | | 4 | | | (8) | | | 310 | | | Mortgage-backed securities | | | | | | | | | | | Commercial | — | | | — | | | — | | | — | | | — | | | Foreign corporate securities | 78 | | | (1) | | | 5 | | | — | | | 82 | | | Total fixed maturity securities - held to maturity | $ | 576 | | | $ | (8) | | | $ | 10 | | | $ | (11) | | | $ | 568 | |
(Some amounts may not reconcile due to rounding.) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | At December 31, 2025 | | (Dollars in millions) | Amortized
Cost | | Allowance for
Credit Losses | | Unrealized
Appreciation | | Unrealized
Depreciation | | Fair
Value | | Fixed maturity securities - held to maturity | | | | | | | | | | | Corporate securities | $ | 166 | | | $ | (2) | | | $ | 7 | | | $ | (1) | | | $ | 169 | | | Asset-backed securities | 328 | | | (3) | | | 5 | | | (8) | | | 322 | | | Mortgage-backed securities | | | | | | | | | | | Commercial | — | | | — | | | — | | | — | | | — | | | Foreign corporate securities | 79 | | | (1) | | | 6 | | | — | | | 84 | | | Total fixed maturity securities - held to maturity | $ | 573 | | | $ | (6) | | | $ | 18 | | | $ | (9) | | | $ | 576 | |
(Some amounts may not reconcile due to rounding.)
|
| Schedule of Amortized Cost and Fair Value of Fixed Maturity Securities, by Contractual Maturity |
The amortized cost and fair value of fixed maturity securities - available for sale are shown in the following table by contractual maturity. As the stated maturity of such securities may not be indicative of actual maturities, the totals for mortgage-backed and asset-backed securities are shown separately. | | | | | | | | | | | | | | | | | | | | | | | | | At June 30, 2026 | | At December 31, 2025 | | (Dollars in millions) | Amortized
Cost | | Fair
Value | | Amortized
Cost | | Fair
Value | | Fixed maturity securities – available for sale | | | | | | | | | Due in one year or less | $ | 704 | | | $ | 680 | | | $ | 638 | | | $ | 612 | | | Due after one year through five years | 4,832 | | | 4,741 | | | 4,516 | | | 4,500 | | | Due after five years through ten years | 3,815 | | | 3,802 | | | 3,696 | | | 3,741 | | | Due after ten years | 940 | | | 908 | | | 1,117 | | | 1,088 | | | Asset-backed securities | 4,604 | | | 4,558 | | | 4,571 | | | 4,554 | | | Mortgage-backed securities | | | | | | | | | Agency commercial | 403 | | | 405 | | | 404 | | | 412 | | | Non-agency commercial | 841 | | | 818 | | | 739 | | | 718 | | | Agency residential | 3,655 | | | 3,581 | | | 3,794 | | | 3,766 | | | Non-agency residential | 1,658 | | | 1,661 | | | 1,557 | | | 1,587 | | | Total fixed maturity securities - available for sale | $ | 21,451 | | | $ | 21,152 | | | $ | 21,032 | | | $ | 20,978 | |
(Some amounts may not reconcile due to rounding.) The amortized cost and fair value of fixed maturity securities - held to maturity are shown in the following table by contractual maturity. As the stated maturity of such securities may not be indicative of actual maturities, the totals for mortgage-backed and asset-backed securities are shown separately. | | | | | | | | | | | | | | | | | | | | | | | | | At June 30, 2026 | | At December 31, 2025 | | (Dollars in millions) | Amortized
Cost | | Fair
Value | | Amortized
Cost | | Fair
Value | | Fixed maturity securities - held to maturity | | | | | | | | | Due in one year or less | $ | 36 | | | $ | 36 | | | $ | 25 | | | $ | 25 | | | Due after one year through five years | 77 | | | 76 | | | 68 | | | 69 | | | Due after five years through ten years | 41 | | | 43 | | | 4 | | | 4 | | | Due after ten years | 104 | | | 104 | | | 148 | | | 155 | | | Asset-backed securities | 318 | | | 310 | | | 328 | | | 322 | | | | | | | | | | | | | | | | | | | Total fixed maturity securities - held to maturity | $ | 576 | | | $ | 568 | | | $ | 573 | | | $ | 576 | |
(Some amounts may not reconcile due to rounding.)
|
| Schedule of Changes in Net Unrealized Appreciation (Depreciation) for Investments |
The changes in net URA(D) for the Company’s investments are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended
June 30, | | Six Months Ended
June 30, | | (Dollars in millions) | 2026 | | 2025 | | 2026 | | 2025 | Increase (decrease) during the period between the fair value and cost of | | | | | | | | | investments carried at fair value, and deferred taxes thereon: | | | | | | | | | Fixed maturity securities - available for sale, held to maturity and short-term investments | $ | (11) | | | $ | 111 | | | $ | (247) | | | $ | 310 | | | Change in URA(D), pre-tax | (11) | | | 111 | | | (247) | | | 310 | | | Deferred tax benefit (expense) | 2 | | | (23) | | | 51 | | | (65) | | Change in URA(D), net of deferred taxes, included in stockholders' equity | $ | (9) | | | $ | 88 | | | $ | (197) | | | $ | 245 | |
(Some amounts may not reconcile due to rounding.)
|
| Schedule of Aggregate Fair Value and Gross Unrealized Depreciation of Fixed Maturity Securities - Available for Sale, by Security Type |
The tables below display the aggregate fair value and gross unrealized depreciation of fixed maturity securities - available for sale by security type and contractual maturity, in each case subdivided according to length of time that the individual securities had been in a continuous unrealized loss position for the periods indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Duration of Unrealized Loss at June 30, 2026 By Security Type | | Less than 12 months | | Greater than 12 months | | Total | | (Dollars in millions) | Fair
Value | | Gross
Unrealized
Depreciation | | Fair
Value | | Gross
Unrealized
Depreciation | | Fair
Value | | Gross
Unrealized
Depreciation | | Fixed maturity securities - available for sale | | | | | | | | | | | | | U.S. Treasury securities and obligations of | | | | | | | | | | | | | U.S. government agencies and corporations | $ | 134 | | | $ | (2) | | | $ | 150 | | | $ | (4) | | | $ | 283 | | | $ | (6) | | | Tax-exempt obligations of U.S. states and political subdivisions | — | | | — | | | 33 | | | (4) | | | 33 | | | (4) | | | Corporate securities | 1,636 | | | (30) | | | 1,087 | | | (88) | | | 2,722 | | | (118) | | | Asset-backed securities | 1,153 | | | (15) | | | 348 | | | (12) | | | 1,501 | | | (27) | | | Mortgage-backed securities | | | | | | | | | | | | | Agency commercial | 137 | | | (2) | | | 18 | | | (1) | | | 155 | | | (3) | | | Non-agency commercial | 213 | | | (1) | | | 355 | | | (23) | | | 569 | | | (24) | | | Agency residential | 507 | | | (6) | | | 910 | | | (102) | | | 1,418 | | | (108) | | | Non-agency residential | 648 | | | (8) | | | 64 | | | (1) | | | 712 | | | (9) | | | Foreign government securities | 385 | | | (9) | | | 329 | | | (29) | | | 714 | | | (38) | | | Foreign corporate securities | 601 | | | (12) | | | 682 | | | (50) | | | 1,283 | | | (61) | | | Total | 5,414 | | | (85) | | | 3,975 | | | (313) | | | 9,389 | | | (398) | | | Securities where an allowance for credit loss was recorded | 58 | | | (1) | | | — | | | — | | | 58 | | | (1) | | | Total fixed maturity securities - available for sale | $ | 5,472 | | | $ | (86) | | | $ | 3,975 | | | $ | (313) | | | $ | 9,447 | | | $ | (399) | |
(Some amounts may not reconcile due to rounding.) The tables below display the aggregate fair value and gross unrealized depreciation of fixed maturity securities - available for sale, by security type and contractual maturity, in each case subdivided according to length of time that individual securities had been in a continuous unrealized loss position for the periods indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Duration of Unrealized Loss at December 31, 2025 By Security Type | | Less than 12 months | | Greater than 12 months | | Total | | (Dollars in millions) | Fair
Value | | Gross
Unrealized
Depreciation | | Fair
Value | | Gross
Unrealized
Depreciation | | Fair
Value | | Gross
Unrealized
Depreciation | | Fixed maturity securities - available for sale | | | | | | | | | | | | | U.S. Treasury securities and obligations of | | | | | | | | | | | | | U.S. government agencies and corporations | $ | 90 | | | $ | (1) | | | $ | 184 | | | $ | (4) | | | $ | 274 | | | $ | (5) | | | Tax-exempt obligations of U.S. states and political subdivisions | 2 | | | — | | | 33 | | | (4) | | | 35 | | | (4) | | | Corporate securities | 625 | | | (12) | | | 1,096 | | | (82) | | | 1,721 | | | (94) | | | Asset-backed securities | 764 | | | (5) | | | 366 | | | (10) | | | 1,130 | | | (15) | | | Mortgage-backed securities | | | | | | | | | | | | | Agency commercial | 43 | | | (1) | | | 17 | | | (1) | | | 60 | | | (2) | | | Non-agency commercial | 256 | | | (3) | | | 338 | | | (19) | | | 594 | | | (22) | | | Agency residential | 194 | | | (1) | | | 913 | | | (94) | | | 1,107 | | | (95) | | | Non-agency residential | 74 | | | — | | | 86 | | | — | | | 160 | | | (1) | | | Foreign government securities | 124 | | | (1) | | | 338 | | | (28) | | | 462 | | | (29) | | | Foreign corporate securities | 325 | | | (5) | | | 580 | | | (46) | | | 905 | | | (50) | | | Total | $ | 2,497 | | | $ | (30) | | | $ | 3,950 | | | $ | (288) | | | $ | 6,447 | | | $ | (318) | | | Securities where an allowance for credit loss was recorded | 24 | | | (2) | | | 14 | | | (2) | | | 37 | | | (4) | | | Total fixed maturity securities - available for sale | $ | 2,521 | | | $ | (32) | | | $ | 3,964 | | | $ | (290) | | | $ | 6,484 | | | $ | (322) | |
(Some amounts may not reconcile due to rounding.)
|
| Schedule of Aggregate Fair Value and Gross Unrealized Depreciation of Fixed Maturity Securities - Available for Sale, by Contractual Maturity |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Duration of Unrealized Loss at June 30, 2026 By Maturity | | Less than 12 months | | Greater than 12 months | | Total | | (Dollars in millions) | Fair
Value | | Gross
Unrealized
Depreciation | | Fair
Value | | Gross
Unrealized
Depreciation | | Fair
Value | | Gross
Unrealized
Depreciation | | Fixed maturity securities - available for sale | | | | | | | | | | | | | Due in one year or less | $ | 66 | | | $ | (2) | | | $ | 361 | | | $ | (12) | | | $ | 426 | | | $ | (14) | | | Due in one year through five years | 1,354 | | | (22) | | | 1,169 | | | (87) | | | 2,523 | | | (110) | | | Due in five years through ten years | 1,214 | | | (25) | | | 327 | | | (35) | | | 1,541 | | | (60) | | | Due after ten years | 122 | | | (3) | | | 423 | | | (41) | | | 544 | | | (44) | | | Asset-backed securities | 1,153 | | | (15) | | | 348 | | | (12) | | | 1,501 | | | (27) | | | Mortgage-backed securities | 1,506 | | | (17) | | | 1,347 | | | (127) | | | 2,853 | | | (144) | | | Total | 5,414 | | | (85) | | | 3,975 | | | (313) | | | 9,389 | | | (398) | | | Securities where an allowance for credit loss was recorded | 58 | | | (1) | | | — | | | — | | | 58 | | | (1) | | | Total fixed maturity securities - available for sale | $ | 5,472 | | | $ | (86) | | | $ | 3,975 | | | $ | (313) | | | $ | 9,447 | | | $ | (399) | |
(Some amounts may not reconcile due to rounding.) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Duration of Unrealized Loss at December 31, 2025 By Maturity | | Less than 12 months | | Greater than 12 months | | Total | | (Dollars in millions) | Fair
Value | | Gross
Unrealized
Depreciation | | Fair
Value | | Gross
Unrealized
Depreciation | | Fair
Value | | Gross
Unrealized
Depreciation | | Fixed maturity securities - available for sale | | | | | | | | | | | | | Due in one year or less | $ | 55 | | | $ | (1) | | | $ | 338 | | | $ | (9) | | | $ | 393 | | | $ | (10) | | | Due in one year through five years | 634 | | | (9) | | | 1,012 | | | (70) | | | 1,646 | | | (80) | | | Due in five years through ten years | 413 | | | (8) | | | 426 | | | (43) | | | 839 | | | (52) | | | Due after ten years | 65 | | | (1) | | | 455 | | | (41) | | | 519 | | | (42) | | | Asset-backed securities | 764 | | | (5) | | | 366 | | | (10) | | | 1,130 | | | (15) | | | Mortgage-backed securities | 567 | | | (6) | | | 1,353 | | | (114) | | | 1,920 | | | (119) | | | Total | $ | 2,497 | | | $ | (30) | | | $ | 3,950 | | | $ | (288) | | | $ | 6,447 | | | $ | (318) | | | Securities where an allowance for credit loss was recorded | 24 | | | (2) | | | 14 | | | (2) | | | 37 | | | (4) | | | Total fixed maturity securities - available for sale | $ | 2,521 | | | $ | (32) | | | $ | 3,964 | | | $ | (290) | | | $ | 6,484 | | | $ | (322) | |
(Some amounts may not reconcile due to rounding.)
|
| Schedule of Components of Net Investment Income |
The components of net investment income are presented in the table below for the periods indicated: | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended
June 30, | | Six Months Ended
June 30, | | (Dollars in millions) | 2026 | | 2025 | | 2026 | | 2025 | | Fixed maturities | $ | 276 | | | $ | 267 | | | $ | 539 | | | $ | 532 | | | Equity securities | 1 | | | 1 | | | 3 | | | 2 | | | Short-term investments and cash | 12 | | | 15 | | | 26 | | | 43 | | | Other invested assets | | | | | | | | | Limited partnerships | 17 | | | 8 | | | 63 | | | (1) | | | Dividends from preferred shares of affiliate | 8 | | | 8 | | | 16 | | | 16 | | | Other | 31 | | | 22 | | | 68 | | | 52 | | | Gross investment income before adjustments | 345 | | | 321 | | | 714 | | | 643 | | | Funds held interest income (expense) | (2) | | | 1 | | | (1) | | | 5 | | | | | | | | | | | Gross investment income | 343 | | | 322 | | | 713 | | | 648 | | | Investment expenses | 8 | | | 8 | | | 17 | | | 15 | | | Net investment income | $ | 335 | | | $ | 314 | | | $ | 696 | | | $ | 633 | |
(Some amounts may not reconcile due to rounding.)
|
| Schedule of Components of Net Gains (Losses) on Investments |
The components of net gains (losses) on investments are presented in the table below for the periods indicated: | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended
June 30, | | Six Months Ended
June 30, | | (Dollars in millions) | 2026 | | 2025 | | 2026 | | 2025 | | Credit allowance on fixed maturity securities | $ | (11) | | | $ | (2) | | | $ | 2 | | | $ | (2) | | | Gains (losses) from fair value adjustments: | | | | | | | | | Equity securities | 4 | | | 4 | | | (2) | | | 3 | | | Other invested assets | (2) | | | (4) | | | (26) | | | 95 | | | Net realized gains (losses) from dispositions: | | | | | | | | | Fixed maturities | 1 | | | — | | | (12) | | | (2) | | | Equity securities | — | | | — | | | — | | | — | | | Other invested assets | — | | | — | | | — | | | — | | | Short-term investments | — | | | — | | | — | | | — | | | Total net realized gains (losses) from dispositions | 1 | | | — | | | (12) | | | (2) | | | | | | | | | | | Total net gains (losses) on investments | $ | (8) | | | $ | (2) | | | $ | (38) | | | $ | 93 | |
(Some amounts may not reconcile due to rounding.)
|
| Schedule of Fixed Maturities, Allowance for Credit Loss, Available-for-Sale Rollforward |
The following tables provide a roll forward of the Company’s beginning and ending balance of allowance for credit losses for the periods indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Roll Forward of Allowance for Credit Losses – Fixed Maturities - Available for Sale | | Three Months Ended June 30, 2026 | | Six Months Ended June 30, 2026 | | Corporate
Securities | | Asset-Backed
Securities | | | | | | Total | | Corporate
Securities | | Asset-Backed
Securities | | | | | | Total | | (Dollars in millions) | | | | | | | | | | | | | | | | | | | | | Beginning balance | $ | (39) | | | $ | (14) | | | | | | | $ | (53) | | | $ | (54) | | | $ | (14) | | | | | | | $ | (68) | | | Credit losses on securities where credit | | | | | | | | | | | | | | | | | | | | | losses were not previously recorded | (1) | | | — | | | | | | | (1) | | | (2) | | | — | | | | | | | (2) | | | Increases in allowance on previously | | | | | | | | | | | | | | | | | | | | | impaired securities | (1) | | | (12) | | | | | | | (13) | | | (7) | | | (12) | | | | | | | (19) | | | Decreases in allowance on previously | | | | | | | | | | | | | | | | | | | | | impaired securities | — | | | — | | | | | | | — | | | — | | | — | | | | | | | — | | | Reduction in allowance due to disposals | 3 | | | — | | | | | | | 3 | | | 25 | | | — | | | | | | | 25 | | | Balance, end of period | $ | (39) | | | $ | (25) | | | | | | | $ | (64) | | | $ | (39) | | | $ | (25) | | | | | | | $ | (64) | |
(Some amounts may not reconcile due to rounding.)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Roll Forward of Allowance for Credit Losses – Fixed Maturities - Available for Sale | | Three Months Ended June 30, 2025 | | Six Months Ended June 30, 2025 | | Corporate
Securities | | Asset-Backed
Securities | | | | | | Total | | Corporate
Securities | | Asset-Backed
Securities | | | | | | Total | | (Dollars in millions) | | | | | | | | | | | | | | | | | | | | | Beginning balance | $ | (36) | | | $ | — | | | | | | | $ | (37) | | | $ | (35) | | | $ | — | | | | | | | $ | (36) | | | Credit losses on securities where credit | | | | | | | | | | | | | | | | | | | | | losses were not previously recorded | (3) | | | — | | | | | | | (3) | | | (4) | | | — | | | | | | | (4) | | | Increases in allowance on previously | | | | | | | | | | | | | | | | | | | | | impaired securities | — | | | — | | | | | | | — | | | — | | | — | | | | | | | — | | | Decreases in allowance on previously | | | | | | | | | | | | | | | | | | | | | impaired securities | — | | | — | | | | | | | — | | | — | | | — | | | | | | | — | | | Reduction in allowance due to disposals | — | | | — | | | | | | | — | | | — | | | — | | | | | | | — | | | Balance, end of period | $ | (39) | | | $ | — | | | | | | | $ | (40) | | | $ | (39) | | | $ | — | | | | | | | $ | (40) | |
(Some amounts may not reconcile due to rounding.)
|
| Schedule of Fixed Maturities, Allowance for Credit Loss, Held-to-Maturity Rollforward |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Roll Forward of Allowance for Credit Losses – Fixed Maturities - Held to Maturity | | Three Months Ended June 30, 2026 | | Six Months Ended June 30, 2026 | | Corporate
Securities | | Asset-Backed
Securities | | | | Foreign
Corporate
Securities | | Total | | Corporate
Securities | | Asset-Backed
Securities | | | | Foreign
Corporate
Securities | | Total | | (Dollars in millions) | | | | | | | | | | | | | | | | | | | | | Beginning balance | $ | (2) | | | $ | (5) | | | | | $ | (1) | | | $ | (8) | | | $ | (2) | | | $ | (3) | | | | | $ | (1) | | | $ | (6) | | | Credit losses on securities where credit | | | | | | | | | | | | | | | | | | | | | losses were not previously recorded | — | | | — | | | | | — | | | — | | | — | | | (2) | | | | | — | | | (2) | | | Increases in allowance on previously | | | | | | | | | | | | | | | | | | | | | impaired securities | — | | | — | | | | | — | | | — | | | — | | | — | | | | | — | | | — | | | Decreases in allowance on previously | | | | | | | | | | | | | | | | | | | | | impaired securities | — | | | — | | | | | — | | | — | | | — | | | — | | | | | — | | | — | | | Reduction in allowance due to disposals | — | | | — | | | | | — | | | — | | | — | | | — | | | | | — | | | — | | | Balance, end of period | $ | (2) | | | $ | (5) | | | | | $ | (1) | | | $ | (8) | | | $ | (2) | | | $ | (5) | | | | | $ | (1) | | | $ | (8) | |
(Some amounts may not reconcile due to rounding.) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Roll Forward of Allowance for Credit Losses – Fixed Maturities - Held to Maturity | | Three Months Ended June 30, 2025 | | Six Months Ended June 30, 2025 | | Corporate
Securities | | Asset-Backed
Securities | | Foreign
Corporate
Securities | | Total | | Corporate
Securities | | Asset-Backed
Securities | | Foreign
Corporate
Securities | | Total | | (Dollars in millions) | | | | | | | | | | | | | | | | | Beginning balance | $ | (2) | | | $ | (4) | | | $ | (1) | | | $ | (8) | | | $ | (2) | | | $ | (4) | | | $ | (1) | | | $ | (8) | | | Credit losses on securities where credit | | | | | | | | | | | | | | | | | losses were not previously recorded | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Increases in allowance on previously | | | | | | | | | | | | | | | | | impaired securities | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Decreases in allowance on previously | | | | | | | | | | | | | | | | | impaired securities | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Reduction in allowance due to disposals | — | | | — | | | 1 | | | 1 | | | — | | | 1 | | | 1 | | | 1 | | | Balance, end of period | $ | (2) | | | $ | (4) | | | $ | (1) | | | $ | (7) | | | $ | (2) | | | $ | (4) | | | $ | (1) | | | $ | (7) | |
(Some amounts may not reconcile due to rounding.)
|
| Schedule of Gross Gains (Losses) from Dispositions of Fixed Maturity and Equity Securities |
The proceeds and split between gross gains and losses from sales of fixed maturity securities - available for sale, fixed maturity securities - held to maturity and equity securities are presented in the table below for the periods indicated: | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended
June 30, | | Six Months Ended
June 30, | | (Dollars in millions) | 2026 | | 2025 | | 2026 | | 2025 | | Proceeds from sales of fixed maturity securities - available for sale | $ | 124 | | | $ | 68 | | | $ | 341 | | | $ | 142 | | | Gross gains from dispositions | 9 | | | 4 | | | 17 | | | 6 | | | Gross losses from dispositions | (8) | | | (5) | | | (29) | | | (8) | | | | | | | | | | | Proceeds from sales of fixed maturity securities - held to maturity | — | | | — | | | — | | | 10 | | | Gross gains from sales | — | | | — | | | — | | | — | | | Gross losses from sales | — | | | — | | | — | | | (1) | | | | | | | | | | | Proceeds from sales of equity securities | $ | — | | | $ | 2 | | | $ | — | | | $ | 2 | | | Gross gains from dispositions | — | | | — | | | — | | | — | | | Gross losses from dispositions | — | | | — | | | — | | | — | |
|