v3.26.3
Investments
 9 Months Ended
Sep. 30, 2026
Investments [Abstract]  
Investment Investments
The following table provides amortized cost, gross unrealized gains, gross unrealized losses and fair value for our fixed-maturity and short-term investments:
(Dollars in millions)Amortized
cost		Gross unrealizedFair value
At September 30, 2026gainslosses
Fixed-maturity:
Corporate $11,191 $27 $676 $10,542 
States, municipalities and political subdivisions4,982 — 507 4,475 
Government-sponsored enterprises 2,948 — 268 2,680 
Asset-backed945 — 47 898 
United States government326 — 15 311 
Foreign government19 — — 19 
Total fixed-maturity20,411 27 1,513 18,925 
Short-term144 — 3 141 
Total fixed-maturity and short-term investments$20,555 $27 $1,516 $19,066 
At December 31, 2025
Fixed-maturity:
Corporate $9,750 $164 $203 $9,711 
States, municipalities and political subdivisions5,065 35 181 4,919 
Government-sponsored enterprises2,360 3 4 2,359 
Asset-backed 793 12 8 797 
United States government312 2 1 313 
Foreign government24 — — 24 
Total fixed-maturity18,304 216 397 18,123 
Short-term148 — — 148 
Total fixed-maturity and short-term investments$18,452 $216 $397 $18,271 
 
The increase in net unrealized investment losses in our fixed-maturity portfolio at September 30, 2026, is primarily due to an increase in U.S. Treasury yields and a slight widening of corporate credit spreads. Our asset-backed securities had an average rating of Aa2/AA at both September 30, 2026 and December 31, 2025.
The table below provides fair values and gross unrealized losses by investment category and by the duration of the continuous unrealized loss positions:
(Dollars in millions)Less than 12 months12 months or moreTotal
At September 30, 2026Fair
value		Unrealized
losses		Fair
value		Unrealized
losses		Fair
value		Unrealized
losses
Fixed-maturity:
Corporate $6,972 $355 $2,473 $321 $9,445 $676 
States, municipalities and political subdivisions2,436 147 1,852 360 4,288 507 
Government-sponsored enterprises2,397 242 283 26 2,680 268 
Asset-backed642 28 198 19 840 47 
United States government293 14 18 1 311 15 
Foreign government19 — — — 19 — 
Total fixed-maturity12,759 786 4,824 727 17,583 1,513 
Short-term141 3 — — 141 3 
Total fixed-maturity and short-term investments$12,900 $789 $4,824 $727 $17,724 $1,516 
At December 31, 2025
Fixed-maturity:
Corporate $849 $15 $2,926 $188 $3,775 $203 
States, municipalities and political subdivisions204 2 2,346 179 2,550 181 
Government-sponsored enterprises983 3 195 1 1,178 4 
Asset-backed101 2 184 6 285 8 
United States government69 — 20 1 89 1 
Total fixed-maturity$2,206 $22 $5,671 $375 $7,877 $397 

Contractual maturity dates for our fixed-maturity and short-term investments were:
(Dollars in millions)Amortized
cost		Fair
value		% of fair
value
At September 30, 2026
Maturity dates:
Due in one year or less$854 $846 4.4 %
Due after one year through five years3,239 3,175 16.7 
Due after five years through ten years5,606 5,296 27.8 
Due after ten years10,856 9,749 51.1 
Total$20,555 $19,066 100.0 %

Actual maturities may differ from contractual maturities when there is a right to call or prepay obligations with or without call or prepayment penalties.
The following table provides investment income and investment gains and losses, net:
(Dollars in millions)Three months ended September 30,Nine months ended September 30,
2026202520262025
Investment income:
Interest$252 $227 $731 $651 
Dividends66 69 214 206 
Other 11 4 31 16 
Total329 300 976 873 
Less investment expenses4 5 14 13 
Total$325 $295 $962 $860 
Investment gains and losses, net:
Equity securities:
Investment gains and losses on securities sold, net$5 $(9)$255 $(5)
Unrealized gains and losses on securities still held, net1 855 980 1,259 
Subtotal6 846 1,235 1,254 
Fixed-maturity securities:
Gross realized gains— 2 9 3 
Gross realized losses(3)(1)(5)(1)
Change in allowance for credit losses, net(5)— (7)(15)
Subtotal(8)1 (3)(13)
Other22 6 26 18 
Total$20 $853 $1,258 $1,259 
 
The fair value of our equity portfolio was $13.145 billion and $12.694 billion at September 30, 2026, and December 31, 2025, respectively. Apple Inc. (Nasdaq:AAPL), an equity holding, was our largest single investment holding with fair values of $1.156 billion and $958 million, which was 9.0% and 7.7% of our publicly traded common equities portfolio and 3.6% and 3.1% of the total investment portfolio at September 30, 2026, and December 31, 2025.

The allowance for credit losses on fixed-maturity securities was $59 million and $54 million at September 30, 2026, and December 31, 2025, respectively. Reductions in the allowance for credit losses for securities sold were $1 million and $2 million for the three and nine months ended September 30, 2026. Reductions in the allowance for credit losses for securities sold were $6 million and $7 million for the three and nine months ended September 30, 2025.

There were 5,241 and 2,597 fixed-maturity investments in a total unrealized loss position of $1.516 billion and $397 million at September 30, 2026, and December 31, 2025, respectively. Of those totals, 113 and 13 fixed-maturity securities had fair values below 70% of amortized cost at September 30, 2026, and December 31, 2025, respectively.