v3.26.1
Available-For-Sale Fixed Maturity Securities
 6 Months Ended
Jun. 30, 2026
Investments, Debt and Equity Securities [Abstract]  
Available-For-Sale Fixed Maturity Securities
3. Available-For-Sale Fixed Maturity Securities
The total amortized cost, fair value, allowance for credit losses, and gross unrealized gains and losses of available-for-sale fixed maturity securities are shown below:
Amortized CostGross Unrealized GainsGross Unrealized LossesAllowance for Credit LossesFair Value
(Dollars in millions)
June 30, 2026
U.S. treasury and government$69 $— $(1)$— $68 
U.S. state and municipal2,829 78 (21)— 2,886 
Foreign governments3,238 24 (24)— 3,238 
Corporate debt securities44,021 523 (401)— 44,143 
Residential mortgage-backed securities862 36 (2)— 896 
Commercial mortgage-backed securities2,830 68 (38)— 2,860 
Collateralized debt securities7,580 63 (136)— 7,507 
Total fixed maturity securities$61,429 $792 $(623)$— $61,598 
December 31, 2025
U.S. treasury and government$68 $— $— $— $68 
U.S. state and municipal2,866 105 (19)(3)2,949 
Foreign governments1,118 51 — — 1,169 
Corporate debt securities42,310 974 (143)— 43,141 
Residential mortgage-backed securities966 44 (2)— 1,008 
Commercial mortgage-backed securities3,051 101 (31)— 3,121 
Collateralized debt securities6,475 108 (47)— 6,536 
Total fixed maturity securities$56,854 $1,383 $(242)$(3)$57,992 
The amortized cost and fair value of available-for-sale fixed maturity securities at June 30, 2026, by contractual maturity are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Residential mortgage-backed securities, commercial mortgage-backed securities and collateralized debt securities, which are not due at a single maturity, have been separately presented below.
Available-For-Sale
Amortized CostFair Value
(Dollars in millions)
Due in one year or less$1,789 $1,793 
Due after one year through five years20,843 20,932 
Due after five years through ten years12,719 12,702 
Due after ten years14,806 14,908 
50,157 50,335 
Residential mortgage-backed securities862 896 
Commercial mortgage-backed securities2,830 2,860 
Collateralized debt securities7,580 7,507 
Total$61,429 $61,598 
Proceeds from sales of available-for-sale fixed maturity securities, with the related gross realized gains and losses, are shown below:
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
(Dollars in millions)
Proceeds from sales of available-for-sale fixed maturity securities$2,221 $3,397 $3,131 $4,604 
Gross realized gains12 8 27 9 
Gross realized (losses)(4)(58)(8)(59)
The Company has pledged bonds in connection with certain agreements and transactions, such as financing and reinsurance agreements. The carrying value of bonds pledged was $10.4 billion as of June 30, 2026 and December 31, 2025.
In accordance with various regulations, the Company has securities on deposit with regulatory authorities with a carrying value of $52 million as of June 30, 2026 and December 31, 2025. There are no restrictions on these assets.
As of June 30, 2026 there were no amounts loaned under reverse repurchase agreements. As of December 31, 2025, amounts loaned under reverse repurchase agreements were $400 million and the fair value of the collateral, comprised of equity securities, was $872 million.
The gross unrealized losses and fair value of available-for-sale fixed maturity securities, aggregated by investment category and the length of time individual securities have been in a continuous unrealized loss position due to market factors are shown below:
Less than 12 months12 months or moreTotal
Number of IssuesGross Unrealized Losses (1)Fair ValueNumber of IssuesGross Unrealized Losses (1)Fair ValueNumber of IssuesGross Unrealized Losses (1)Fair Value
(Dollars in millions)
June 30, 2026
U.S. treasury and government7 $— $13 3 $(1)$35 10 $(1)$48 
U.S. state and municipal77 (7)535 28 (14)170 105 (21)705 
Foreign governments23 (24)2,514 2 — 11 25 (24)2,525 
Corporate debt securities2,370 (305)19,388 208 (96)1,372 2,578 (401)20,760 
Residential mortgage-backed securities54 (1)136 14 (1)45 68 (2)181 
Commercial mortgage-backed securities59 (13)496 27 (25)203 86 (38)699 
Collateralized debt securities135 (87)3,697 22 (49)319 157 (136)4,016 
Total2,725 $(437)$26,779 304 $(186)$2,155 3,029 $(623)$28,934 
December 31, 2025
U.S. treasury and government1 $— $2 3 $— $37 4 $— $39 
U.S. state and municipal43 (5)345 32 (14)190 75 (19)535 
Foreign governments6 — 148 2 — 12 8 — 160 
Corporate debt securities930 (74)5,737 237 (69)1,661 1,167 (143)7,398 
Residential mortgage-backed securities22 — 64 16 (2)95 38 (2)159 
Commercial mortgage-backed securities29 (8)196 29 (23)290 58 (31)486 
Collateralized debt securities62 (17)577 17 (30)225 79 (47)802 
Total1,093 $(104)$7,069 336 $(138)$2,510 1,429 $(242)$9,579 
(1)Unrealized losses have been reduced to exclude the allowance for credit losses of $0 million and $3 million as of June 30, 2026 and December 31, 2025, respectively.
The unrealized losses at June 30, 2026 are principally related to the timing of the purchases of certain securities, which carry less yield than those available at June 30, 2026. Approximately 95% and 92% of the unrealized losses on fixed maturity securities shown in the above table for June 30, 2026 and December 31, 2025, respectively, are on securities that are rated investment grade, defined as being the highest two National Association of Insurance Commissioners (“NAIC”) designations.
The Company expects to recover the amortized cost on all securities except for those securities on which we recognized an allowance for credit loss. In addition, as the Company did not have the intent to sell fixed maturity securities with unrealized losses and it was not more likely than not that the Company would be required to sell these securities prior to recovery of the amortized cost, which may occur at maturity, the Company did not write down these investments to fair value through the Condensed Consolidated Statements of Operations.
Allowance for Credit Losses
Several assumptions and underlying estimates are made in the evaluation of allowance for credit losses. Examples include financial condition, near-term and long-term prospects of the issue or issuer, including relevant industry conditions and trends and implications of rating agency actions and offering prices. Based on this evaluation, unrealized losses on available-for-sale securities for which an allowance for credit loss was not recorded were concentrated within the financials sector as of June 30, 2026 and December 31, 2025.
The rollforward of the allowance for credit losses for available-for-sale fixed maturity securities is shown below:
Three Months Ended June 30, 2026
U.S. State and MunicipalCorporate Debt SecuritiesResidential Mortgage Backed SecuritiesCollateralized Debt SecuritiesTotal
(Dollars in millions)
Beginning balance$(4)$— $— $— $(4)
Changes in previously recorded allowance4 — — — 4 
Balance as of June 30, 2026
$— $— $— $— $— 
Three Months Ended June 30, 2025
U.S. State and MunicipalCorporate Debt SecuritiesResidential Mortgage Backed SecuritiesCollateralized Debt SecuritiesTotal
(Dollars in millions)
Beginning balance$— $(7)$(1)$(1)$(9)
Credit losses recognized on securities for which credit losses were not previously recorded— (3)— (1)(4)
Changes in previously recorded allowance— 11 1 1 13 
Recoveries of amounts previously written off— (2)— — (2)
Balance as of June 30, 2025
$— $(1)$— $(1)$(2)
Six Months Ended June 30, 2026
U.S. State and MunicipalCorporate Debt SecuritiesResidential Mortgage Backed SecuritiesCollateralized Debt SecuritiesTotal
(Dollars in millions)
Beginning balance$(3)$— $— $— $(3)
Changes in previously recorded allowance3 — — — 3 
Balance as of June 30, 2026
$— $— $— $— $— 
Six Months Ended June 30, 2025
U.S. State and MunicipalCorporate Debt SecuritiesResidential Mortgage Backed SecuritiesCollateralized Debt SecuritiesTotal
(Dollars in millions)
Beginning balance$— $(24)$(1)$— $(25)
Credit losses recognized on securities for which credit losses were not previously recorded— (9)— (2)(11)
Reductions for securities sold during the period— 16 — — 16 
Changes in previously recorded allowance— 18 1 1 20 
Recoveries of amounts previously written off— (2)— — (2)
Balance as of June 30, 2025
$— $(1)$— $(1)$(2)
No accrued interest receivables were written off as of June 30, 2026 and December 31, 2025.
4. Equity Securities
The net gains on equity securities recognized in “Investment related gains (losses)” on the Condensed Consolidated Statements of Operations are shown below:
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
(Dollars in millions)
Unrealized gains on equity securities$84 $29 $32 $33 
Net losses on equity securities sold— (2)— — 
Net gains on equity securities$84 $27 $32 $33 
Equity securities by market sector distribution are shown below, based on carrying value:
June 30, 2026December 31, 2025
Consumer goods1 %— %
Education45 %21 %
Energy and utilities10 %6 %
Finance10 %49 %
Healthcare9 %4 %
Industrials3 %9 %
Information technology14 %7 %
Other8 %4 %
Total100 %100 %