v3.26.3
Investments
 9 Months Ended
Sep. 30, 2026
Investments, Debt and Equity Securities [Abstract]  
Investments INVESTMENTS
The following tables present the composition of our investment portfolio by major security type:
($ in millions)CostGross
Unrealized
Gains		Gross
Unrealized
Losses		Net
Holding
Period
Gains
(Losses)		Fair
Value		% of
Total
Fair
Value
September 30, 2026
Available-for-sale securities:
Fixed maturities:
U.S. government$43,865 $0 $(2,271)$0 $41,594 41.9 %
State and local government3,988 0 (153)0 3,835 3.9 
Corporate and other debt23,856 16 (580)(17)23,275 23.5 
Residential mortgage-backed4,654 0 (95)0 4,559 4.6 
Commercial mortgage-backed8,174 3 (268)0 7,909 8.0 
Other asset-backed11,182 4 (111)0 11,075 11.1 
Total fixed maturities95,719 23 (3,478)(17)92,247 93.0 
Short-term investments2,125 0 0 0 2,125 2.1 
Total available-for-sale securities97,844 23 (3,478)(17)94,372 95.1 
Equity securities:
Nonredeemable preferred stocks212 0 0 (19)193 0.2 
Common equities909 0 0 3,723 4,632 4.7 
Total equity securities1,121 0 0 3,704 4,825 4.9 
Total portfolio1
$98,965 $23 $(3,478)$3,687 $99,197 100.0 %
($ in millions)CostGross
Unrealized
Gains		Gross
Unrealized
Losses		Net
Holding
Period
Gains
(Losses)		Fair
Value		% of
Total
Fair
Value
September 30, 2025
Available-for-sale securities:
Fixed maturities:
U.S. government$51,021 $731 $(413)$0 $51,339 54.3 %
State and local government3,320 20 (65)0 3,275 3.5 
Foreign government16 0 0 0 16 0 
Corporate and other debt18,621 270 (86)12 18,817 19.9 
Residential mortgage-backed2,979 26 (6)1 3,000 3.2 
Commercial mortgage-backed5,916 17 (247)0 5,686 6.0 
Other asset-backed6,374 35 (33)0 6,376 6.7 
Total fixed maturities88,247 1,099 (850)13 88,509 93.6 
Short-term investments1,515 0 0 0 1,515 1.6 
Total available-for-sale securities89,762 1,099 (850)13 90,024 95.2 
Equity securities:
Nonredeemable preferred stocks454 0 0 (16)438 0.5 
Common equities808 0 0 3,239 4,047 4.3 
Total equity securities1,262 0 0 3,223 4,485 4.8 
Total portfolio1
$91,024 $1,099 $(850)$3,236 $94,509 100.0 %
($ in millions)CostGross
Unrealized
Gains		Gross
Unrealized
Losses		Net
Holding
Period
Gains
(Losses)		Fair
Value		% of
Total
Fair
Value
December 31, 2025
Available-for-sale securities:
Fixed maturities:
U.S. government$43,114 $541 $(357)$0 $43,298 44.5 %
State and local government3,342 19 (58)0 3,303 3.4 
Foreign government17 0 0 0 17 0 
Corporate and other debt19,773 273 (68)13 19,991 20.5 
Residential mortgage-backed3,152 28 (6)1 3,175 3.3 
Commercial mortgage-backed6,194 12 (233)0 5,973 6.1 
Other asset-backed7,112 28 (31)0 7,109 7.3 
Total fixed maturities82,704 901 (753)14 82,866 85.1 
Short-term investments10,005 0 0 0 10,005 10.3 
Total available-for-sale securities92,709 901 (753)14 92,871 95.4 
Equity securities:
Nonredeemable preferred stocks419 0 0 (15)404 0.4 
Common equities819 0 0 3,279 4,098 4.2 
Total equity securities1,238 0 0 3,264 4,502 4.6 
Total portfolio1
$93,947 $901 $(753)$3,278 $97,373 100.0 %
1 At September 30, 2026 and 2025, and December 31, 2025, we had $1,160 million, $523 million, and $200 million, respectively, of net unsettled security transactions included in accounts payable, accrued expenses, and other liabilities on our consolidated balance sheets.
The total fair value of the portfolio at September 30, 2026 and 2025, and December 31, 2025, included $5.8 billion, $4.9 billion, and $13.0 billion, respectively, of securities held in a consolidated, non-insurance subsidiary of the holding company, net of unsettled security transactions. A portion of the investments held at December 31, 2025, were sold and proceeds were used to pay our common share dividends in January 2026; see Note 10 – Dividends for additional information.
At September 30, 2026, securities in the principal amount of $945 million were on deposit to meet state insurance and other regulatory requirements. We did not hold any securities of any one issuer, excluding U.S. government securities, with an aggregate cost or fair value exceeding 10% of total shareholders’ equity at September 30, 2026 or 2025, or December 31, 2025. At September 30, 2026, we did not hold any debt securities that were non-income producing during the preceding 12 months.
Hybrid Securities Certain securities in our fixed-maturity portfolio are accounted for as hybrid securities and are reported at fair value:
September 30,
(millions)20262025December 31, 2025
Fixed Maturities:
Corporate and other debt$643 $696 $733 
Residential mortgage-backed694 642 792 
Total hybrid securities$1,337 $1,338 $1,525 
These securities contain embedded derivatives (e.g., change-in-control put option, debt-to-equity conversion, or any other feature unrelated to the credit quality or risk of default of the issuer that could impact the amount or timing of our expected future cash flows) that are not deemed to be clearly and closely related to the host investments. Since the embedded derivatives do not have observable intrinsic values, we use the fair value option to record the changes in fair value of these securities through income as a component of net realized gains (losses).
Fixed Maturities The following table details the composition of fixed maturities by maturity at September 30, 2026:
(millions)CostFair Value
Less than one year$12,374 $12,300 
One to five years50,489 48,905 
Five to ten years32,395 30,593 
Ten years or greater461 449 
Total$95,719 $92,247 
Securities are classified in the maturity distribution table based upon their projected cash flows. Contractual maturities may differ from expected cash flows because the issuers of the securities may have the right to call or prepay obligations.
Gross Unrealized Losses The following tables show the composition of gross unrealized losses by major security type and by the length of time that individual securities have been in a continuous unrealized loss position:
Total No. of Sec.Total
Fair
Value		Gross
Unrealized
Losses		Less than 12 Months12 Months or Greater
($ in millions)No. of Sec.Fair
Value		Gross Unrealized
Losses		No. of Sec.Fair
 Value		Gross Unrealized
Losses
September 30, 2026
U.S. government109 $41,594 $(2,271)69 $36,518 $(1,843)40 $5,076 $(428)
State and local government532 3,782 (153)381 2,859 (87)151 923 (66)
Corporate and other debt723 19,776 (580)656 18,112 (501)67 1,664 (79)
Residential mortgage-backed139 3,724 (95)122 3,678 (89)17 46 (6)
Commercial mortgage-backed180 4,916 (268)80 2,927 (37)100 1,989 (231)
Other asset-backed238 7,870 (111)209 7,141 (80)29 729 (31)
Total fixed maturities1,921 $81,662 $(3,478)1,517 $71,235 $(2,637)404 $10,427 $(841)
Total No. of Sec.Total
Fair
Value		Gross
Unrealized
Losses		Less than 12 Months12 Months or Greater
($ in millions)No. of Sec.Fair
Value		Gross Unrealized
Losses		No. of Sec.Fair
 Value		Gross Unrealized
Losses
September 30, 2025
U.S. government71 $11,145 $(413)7 $1,777 $(3)64 $9,368 $(410)
State and local government251 1,557 (65)40 188 (1)211 1,369 (64)
Corporate and other debt138 3,503 (86)24 718 (4)114 2,785 (82)
Residential mortgage-backed28 283 (6)9 186 (1)19 97 (5)
Commercial mortgage-backed138 2,879 (247)16 375 (1)122 2,504 (246)
Other asset-backed50 1,128 (33)13 228 (1)37 900 (32)
Total fixed maturities676 $20,495 $(850)109 $3,472 $(11)567 $17,023 $(839)
Total No. of Sec.Total
Fair
Value		Gross
Unrealized
Losses		Less than 12 Months12 Months or Greater
($ in millions)No. of Sec.Fair
Value		Gross Unrealized
Losses		No. of Sec.Fair
 Value		Gross Unrealized
Losses
December 31, 2025
U.S. government62 $17,402 $(357)8 $11,327 $(54)54 $6,075 $(303)
State and local government252 1,589 (58)60 318 (1)192 1,271 (57)
Corporate and other debt141 3,821 (68)36 1,177 (5)105 2,644 (63)
Residential mortgage-backed30 293 (6)12 233 (1)18 60 (5)
Commercial mortgage-backed147 3,551 (233)34 1,210 (3)113 2,341 (230)
Other asset-backed64 1,924 (31)32 1,148 (3)32 776 (28)
Total fixed maturities696 $28,580 $(753)182 $15,413 $(67)514 $13,167 $(686)
A review of the securities in an unrealized loss position indicated that, at the end of each period presented, the issuers were current with respect to their interest obligations and that there was no evidence of deterioration of the current cash flow projections that would indicate we would not receive the remaining principal at maturity.
Allowance For Credit and Uncollectible Losses We are required to measure the amount of potential credit losses for all fixed-maturity securities in an unrealized loss position. We did not record any allowances for credit losses or any write-offs for credit losses deemed to be uncollectible during the first nine months of 2026 or 2025, and did not have a material credit loss allowance balance as of September 30, 2026 and 2025, or December 31, 2025. No unrealized loss write-offs were recorded during the nine months ended September 30, 2026 or 2025.
As of September 30, 2026 and 2025, and December 31, 2025, we believe that none of the unrealized losses on our fixed-maturity securities were related to material credit losses on any specific securities, or in the aggregate. We continue to expect all the securities in our fixed-maturity portfolio will pay their principal and interest obligations.
In addition, we reviewed the accrued investment income on securities in an unrealized loss position at September 30, 2026 and 2025, and December 31, 2025, to determine if the accrued interest amounts were uncollectible. Based on our analysis, we believe the issuers have sufficient liquidity and capital reserves to meet their current interest and future principal obligations and, therefore, did not write off any accrued income as uncollectible at September 30, 2026 and 2025, or December 31, 2025.
Realized Gains (Losses) The following table details the components of net realized gains (losses) for the three and nine months ended September 30:
Three MonthsNine Months
(millions)2026202520262025
Gross realized gains on security sales
Available-for-sale securities:
U.S. government$9 $1 $159 $78 
State and local government0 0 1 0 
Corporate and other debt7 6 42 9 
Residential mortgage-backed0 0 1 1 
Total available-for-sale securities16 7 203 88 
Equity securities:
Nonredeemable preferred stocks2 1 12 3 
Common equities27 11 63 50 
Total equity securities29 12 75 53 
Subtotal gross realized gains on security sales45 19 278 141 
Gross realized losses on security sales
Available-for-sale securities:
U.S. government(48)0 (133)(78)
State and local government(4)0 (8)(2)
Corporate and other debt(15)(4)(26)(7)
Residential mortgage-backed securities(1)0 (1)0 
Commercial mortgage-backed(1)0 (1)(10)
Total available-for-sale securities(69)(4)(169)(97)
Equity securities:
Nonredeemable preferred stocks0 (1)(8)(6)
Common equities(3)(2)(16)(6)
Total equity securities(3)(3)(24)(12)
Subtotal gross realized losses on security sales(72)(7)(193)(109)
Net realized gains (losses) on security sales
Available-for-sale securities:
U.S. government(38)1 27 0 
State and local government(4)0 (7)(2)
Corporate and other debt(8)2 16 2 
Residential mortgage-backed(1)0 0 1 
Commercial mortgage-backed(1)0 (1)(10)
Total available-for-sale securities(52)3 35 (9)
Equity securities:
Nonredeemable preferred stocks2 0 4 (3)
Common equities23 9 46 44 
Total equity securities25 9 50 41 
Subtotal net realized gains (losses) on security sales(27)12 85 32 
Other assets
Gain18 0 18 0 
Net holding period gains (losses)
Hybrid securities(218)3 (228)17 
Equity securities57 280 439 421 
Subtotal net holding period gains (losses)(161)283 211 438 
Total net realized gains (losses) on securities1
$(170)$295 $314 $470 
1U.S. Treasury futures positions are utilized to manage portfolio duration. Net realized losses on closed positions, which are included within U.S. government securities, were $18 million and $69 million for the three and nine months ended September 30, 2026, respectively. Net holding period losses on open positions, which are included within hybrid securities, were $199 million and $198 million for the three and nine months ended September 30, 2026, respectively. There was no U.S. Treasury futures activity during the corresponding 2025 periods.
During the third quarter and first nine months of 2026 and 2025, the majority of our security sales were U.S. government securities, primarily sold to manage portfolio duration. We also selectively sold securities that we viewed as having less attractive risk/reward profiles during the third quarter and first nine months of 2026 and 2025.
The following table reflects our holding period realized gains (losses) recognized on equity securities held at the three and nine months ended September 30:
Three MonthsNine Months
(millions)2026202520262025
Total net gains (losses) recognized during the period on equity securities$82 $289 $489 $462 
Less: Net gains (losses) recognized on equity securities sold during the period25 9 50 41 
Net holding period gains (losses) recognized during the period on equity securities held at period end$57 $280 $439 $421 

Net Investment Income The following table details the components of net investment income for the three and nine months ended September 30:
Three MonthsNine Months
(millions)2026202520262025
Available-for-sale securities:
Fixed maturities:
U.S. government$429 $470 $1,262 $1,314 
State and local government32 24 83 64 
Corporate and other debt273 214 761 593 
Residential mortgage-backed59 38 152 95 
Commercial mortgage-backed90 63 244 175 
Other asset-backed118 78 305 246 
Total fixed maturities1,001 887 2,807 2,487 
Short-term investments19 20 79 66 
Total available-for-sale securities1,020 907 2,886 2,553 
Equity securities:
Nonredeemable preferred stocks2 6 8 19 
Common equities13 11 37 37 
Total equity securities15 17 45 56 
Investment income1,035 924 2,931 2,609 
Investment expenses(10)(10)(28)(26)
Net investment income$1,025 $914 $2,903 $2,583 
On a year-over-year basis, investment income (interest and dividends) increased 12% for both the three and nine months ended September 30, 2026, compared to the same periods last year. The increases primarily reflect growth in invested assets.