All fixed-maturity securities are reported on a trade date-basis, measured at fair value and classified as either trading or available-for-sale. Changes in the fair value of trading fixed-maturity securities are reported as a component of net income, while unrealized gains and losses on available-for-sale fixed-maturity securities are reported in “accumulated other comprehensive income” (AOCI). Loss Mitigation Securities, which are a component of available-for-sale fixed-maturity securities, are accounted for based on their underlying investment type, excluding the effects of the Company’s insurance.

Other invested assets primarily consist of equity method investments; the Sound Point investment being the most significant. The Company reports its interest in the earnings of equity method investments in “equity in earnings (losses) of investees” in the consolidated statement of operations. Most equity method investments are reported on a one-quarter lag. At the time of acquisition, the difference between the Company’s cost of an equity method investment (fair value) and the Company’s proportionate share of the carrying value of the investee’s net assets is referred to as the basis difference. The basis difference includes amounts attributed to finite-lived intangible assets, is amortized over the assets’ remaining useful lives, and is reported in “equity in earnings (losses) of investees.”

The Company classifies distributions received from equity method investments using the cumulative earnings approach in the consolidated statements of cash flows. Under the cumulative earnings approach, distributions received up to the amount of cumulative equity in earnings recognized are treated as returns on investment within operating cash flows, and those in excess of that amount are treated as returns of investment within investing cash flows.

Sound Point managed funds (and prior to July 1, 2023, AssuredIM managed funds), in which the Company invests and where the Company has been deemed to be the primary beneficiary, are not reported in “investments” on the consolidated balance sheets, but rather in “assets of consolidated investment vehicles” and “other liabilities,” with the portion not owned by the Company presented as “nonredeemable noncontrolling interests”. See Note 8, Financial Guaranty Variable Interest Entities and Consolidated Investment Vehicles, for further information regarding the CIVs.

Net investment income primarily includes the income earned on fixed-maturity securities and short-term investments, including amortization of premiums and accretion of discounts. For mortgage-backed securities and any other securities for which there is prepayment risk, prepayment assumptions are evaluated quarterly and revised as necessary. For securities other than purchased credit deteriorated (PCD) securities, any necessary adjustments due to changes in effective yields and expected maturities are recognized in net investment income using the retrospective method. PCD securities are defined as financial assets that, as of the date of acquisition, have experienced a more-than-insignificant deterioration in credit quality since origination.

using the specific identification method, reductions to amortized cost of available-for-sale investments that have been written down due to the Company’s intent to sell them or it being more-likely-than-not that the Company will be required to sell them, and the change in allowance for credit losses (including accretion) as discussed below.

For all fixed-maturity securities that were originally purchased with credit deterioration, accrued interest is not separately presented but rather is a component of the amortized cost of the instrument. For all other available-for-sale securities, a separate amount for accrued interest is reported in “other assets.”

For an available-for-sale fixed-maturity security that has experienced a decline in fair value below its amortized cost due to credit related factors, an allowance is established for the difference between the estimated recoverable value and amortized cost with a corresponding charge to “net realized investment gains (losses)” in the consolidated statements of operations. The estimated recoverable value is the present value of cash flows expected to be collected. The allowance for credit losses is limited to the difference between amortized cost and fair value. Any difference between the security’s fair value and its amortized cost that is not associated with credit related factors is presented as a component of AOCI.

When estimating future cash flows for fixed-maturity securities, management considers the historical performance of underlying assets and available market information as well as bond-specific considerations. In addition, the process of estimating future cash flows includes, but is not limited to, the following critical inputs which vary by security type:

The allowance for credit losses and the corresponding charge to net realized investment gains (losses) may be reversed if conditions change. However, the allowance for credit losses is never reduced below zero. When the Company determines that all or a portion of a fixed-maturity security is uncollectible, the uncollectible amortized cost amount is written off with a corresponding reduction to the allowance for credit losses. If cash flows that were previously written off are collected, the recovery is recognized in net realized investment gains (losses).

An allowance for credit losses is established upon initial recognition for available-for-sale PCD securities. On the date of acquisition, the amortized cost of a PCD security is equal to its purchase price plus the allowance for credit losses, with no credit loss expense recognized in the consolidated statements of operations. After the date of acquisition, deterioration (or improvement) in credit will result in an increase (or decrease) to the allowance and an offsetting credit loss expense (or benefit). To measure this, the Company performs a discounted cash flow analysis. For PCD securities that are also beneficial interests, favorable or adverse changes in expected cash flows are recognized as a change in the allowance for credit losses. Changes in expected cash flows that are not captured through the allowance are reflected as a prospective adjustment to the security’s yield within “net investment income” in the consolidated statements of operations.

The Company has elected to not measure credit losses on its accrued interest receivable and instead write off accrued interest when it is six months past due or on the date it is deemed uncollectible, if earlier. All write-offs of accrued interest are recorded as a reduction to “net investment income” in the consolidated statements of operations.

For impaired securities that (i) the Company intends to sell, or (ii) it is more-likely-than-not that the Company will be required to sell before recovering its amortized cost, the amortized cost is written down to fair value with a corresponding charge to net realized investment gains (losses). No allowance is established in these situations and any previously recorded allowance is reversed. The new cost basis is not adjusted for subsequent increases in estimated fair value.

The majority of the investment portfolio consists of investment grade fixed-maturity securities managed by outside managers. The Company has established investment guidelines for these investment managers regarding credit quality, exposure to a particular sector and exposure to a particular obligor within a sector.


	As of December 31,
	2024		2023
	(in millions)
Fixed-maturity securities, available-for-sale	$	6,369	$	6,307
Fixed-maturity securities, trading	147		318
Short-term investments	1,221		1,661
Other invested assets:
Equity method investments:
Sound Point	418		429
Funds and other investments	496		394
Other	12		6
Total (1)	$	8,663	$	9,115

(1) The aggregate carrying value of the Company’s investments in Sound Point managed investments, excluding the ownership interest in Sound Point of $418 million and $429 million as of December 31, 2024 and December 31, 2023, respectively, and excluding certain investments in funds that are consolidated and accounted for as CIVs, was $569 million and $202 million as of December 31, 2024 and December 31, 2023, respectively.

As of December 31, 2024 and December 31, 2023, 12.6% and 9.2%, respectively, of the available-for-sale fixed-maturity securities, were either rated BIG or not rated, primarily consisting of Loss Mitigation Securities and CLO equity tranches. As of December 31, 2024 and December 31, 2023, the carrying value of Loss Mitigation Securities was $479 million and $459 million, respectively. As of December 31, 2024 and December 31, 2023, the carrying value of CLO equity tranches was $277 million and $13 millions, respectively. Fixed-maturity securities classified as trading securities primarily include contingent value instruments (CVIs), and are not rated.

The investment portfolio includes $884 million in alternative investments primarily consisting of CLO equity securities, classified as available-for-sale fixed-maturity securities, and $508 million of investments across various asset classes that are reported in other invested assets. In addition, as of December 31, 2024 and December 31, 2023, $33 million and $305 million, respectively, of the Company’s alternative investments in Sound Point managed funds were consolidated and reported in “assets of CIVs,” “other liabilities,” and “nonredeemable noncontrolling interests.” As of December 31, 2024, one active fund in which the Company invests was accounted for as a CIV. See Note 8, Financial Guaranty Variable Interest Entities and Consolidated Investment Vehicles. The Company’s alternative investment commitments as of December 31, 2024 include $610 million in unfunded commitments, which together with its $884 million in funded commitments total $1.5 billion, including a $1 billion commitment to invest in Sound Point managed alternative investments. Capital allocated to alternative investments was committed to several funds pursuing various strategies, including private healthcare investing, asset-based/specialty finance, CLOs, and middle market direct lending. See Note 1, Business and Basis of Presentation, for a description of the Sound Point Transaction.

In addition to the commitments above, the Company has agreed to subscribe for liquidity bonds to be issued by a U.K. regulated utility to which it has insured exposure. At this time the Company estimates that it will purchase approximately £110 million (or $139 million) in liquidity bonds under this commitment.


Security Type	Percent of Total (1)		Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(dollars in millions)
Obligations of state and political subdivisions	30	%	$	2,032	$	(14)	$	25	$	(103)	$	1,940
U.S. government and agencies	1		72		—		1		(6)		67
Corporate securities (2)	38		2,586		(7)		9		(206)		2,382
Mortgage-backed securities (3):
RMBS	9		657		(21)		2		(71)		567
Commercial mortgage-backed securities (CMBS)	3		189		—		—		(3)		186
Asset-backed securities:
CLOs	9		615		(1)		6		(9)		611
Other (4)	9		593		(17)		1		(30)		547
Non-U.S. government securities	1		83		—		—		(14)		69
Total available-for-sale fixed-maturity securities	100	%	$	6,827	$	(60)	$	44	$	(442)	$	6,369


Security Type	Percent of Total (1)		Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(dollars in millions)
Obligations of state and political subdivisions	41	%	$	2,733	$	(13)	$	33	$	(92)	$	2,661
U.S. government and agencies	1		65		—		1		(6)		60
Corporate securities (2)	34		2,327		(6)		17		(197)		2,141
Mortgage-backed securities (3):
RMBS	6		428		(21)		3		(68)		342
CMBS	2		157		—		—		(6)		151
Asset-backed securities:
CLOs	7		456		—		1		(7)		450
Other (4)	7		465		(37)		—		(26)		402
Non-U.S. government securities	2		115		—		—		(15)		100
Total available-for-sale fixed-maturity securities	100	%	$	6,746	$	(77)	$	55	$	(417)	$	6,307


	Less than 12 months				12 months or more				Total
	Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss
	(dollars in millions)
Obligations of state and political subdivisions	$	624	$	(7)	$	964	$	(96)	$	1,588	$	(103)
U.S. government and agencies	5		—		28		(6)		33		(6)
Corporate securities	762		(20)		1,046		(150)		1,808		(170)
Mortgage-backed securities:
RMBS	255		(4)		123		(10)		378		(14)
CMBS	83		—		103		(3)		186		(3)
Asset-backed securities:
CLOs	151		(5)		107		(1)		258		(6)
Other	60		(1)		16		—		76		(1)
Non-U.S. government securities	35		(3)		30		(11)		65		(14)
Total	$	1,975	$	(40)	$	2,417	$	(277)	$	4,392	$	(317)
Number of securities (1)			569				1,065				1,591


	Less than 12 months				12 months or more				Total
	Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss
	(dollars in millions)
Obligations of state and political subdivisions	$	641	$	(4)	$	931	$	(87)	$	1,572	$	(91)
U.S. government and agencies	—		—		33		(6)		33		(6)
Corporate securities	72		(1)		1,426		(152)		1,498		(153)
Mortgage-backed securities:
RMBS	27		(1)		124		(8)		151		(9)
CMBS	3		—		148		(6)		151		(6)
Asset-backed securities:
CLOs	22		(1)		379		(6)		401		(7)
Other	1		—		26		(1)		27		(1)
Non-U.S. government securities	—		—		95		(15)		95		(15)
Total	$	766	$	(7)	$	3,162	$	(281)	$	3,928	$	(288)
Number of securities (1)			274				1,266				1,525

(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.

The Company considered the credit quality, cash flows, interest rate movements, ability to hold a security to recovery and intent to sell a security in determining whether a security had a credit loss. The Company has determined that the unrealized losses recorded as of December 31, 2024 and December 31, 2023 were primarily related to higher interest rates rather than credit quality. As of December 31, 2024, the Company did not intend to, and was not required to, sell investments in an unrealized loss position prior to expected recovery in value. As of December 31, 2024, of the securities in an unrealized loss position for which an allowance for credit loss was not recorded, 438 securities had unrealized losses in excess of 10% of their carrying value, whereas as of December 31, 2023, 409 securities had unrealized losses in excess of 10% of their carrying

The amortized cost and estimated fair value of available-for-sale fixed-maturity securities by contractual maturity as of December 31, 2024 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.


	Amortized Cost		Estimated Fair Value
	(in millions)
Due within one year	$	382	$	370
Due after one year through five years	1,168		1,122
Due after five years through 10 years	1,974		1,888
Due after 10 years	2,457		2,236
Mortgage-backed securities:
RMBS	657		567
CMBS	189		186
Total	$	6,827	$	6,369

Based on fair value, fixed-maturity securities, short-term investments and cash that are either held in trust for the benefit of third-party ceding insurers in accordance with statutory requirements, placed on deposit to fulfill state licensing requirements, or otherwise pledged or restricted, totaled $79 million as of December 31, 2024 and $234 million as of December 31, 2023. The investment portfolio also contains securities that are held in trust by certain AGL subsidiaries or are otherwise restricted for the benefit of other AGL subsidiaries in accordance with statutory and regulatory requirements with a fair value of $1,135 million and $1,154 million as of December 31, 2024 and December 31, 2023, respectively.


	Year Ended December 31,
	2024		2023		2022
	(in millions)
Investment income:
Fixed-maturity securities, available-for-sale (1)	$	261	$	294	$	258
Short-term investments	83		73		15
Other invested assets	1		3		1
Investment income	345		370		274
Investment expenses	(5)		(5)		(5)
Net investment income	$	340	$	365	$	269

Fair value gains (losses) on trading securities (2)	$	52	$	74	$	(34)

Equity in earnings (losses) of investees
Sound Point (3)	$	6	$	5	$	—
Funds and other (4)	56		23		(39)
Equity in earnings (losses) of investees	$	62	$	28	$	(39)

(2) Fair value gains on trading securities pertaining to securities still held as of December 31, 2024 were $15 million for 2024. Fair value gains on trading securities pertaining to securities still held as of December 31, 2023 were $31 million for 2023. Fair value losses on trading securities pertaining to securities still held as of December 31, 2022 were $29 million for 2022.

Substantially all of the trading securities are Puerto Rico CVIs. In 2022, as a result of the 2022 Puerto Rico Resolutions, the Company received cash, new general obligation bonds, new bonds backed by toll revenues (together, New Recovery Bonds) and CVIs. The CVIs are intended to provide creditors with additional recoveries tied to the outperformance of the Puerto Rico 5.5% Sales and Use Tax receipts against May 2020 certified fiscal plan projections, subject to annual and lifetime caps. As of December 31, 2024, all but $123 million of the CVIs (at fair value), and substantially all of the New Recovery Bonds had been sold or redeemed. The Company may sell in the future any CVIs it continues to hold.

As of December 31, 2024, the carrying value of the Company’s ownership interest in Sound Point was $418 million, and includes a basis difference related principally to goodwill and indefinite-lived intangible assets of $245 million, and finite-lived intangible assets of $31 million which had an average estimated term of 5.5 years.

The table below presents summarized financial information for equity method investments that meet, in aggregate, the requirements for reporting summarized disclosures. Such requirements were met in 2024, and the information for 2023 and 2022 is presented for comparative purposes.


	As of December, 31
	2024		2023
	(in millions)
Investments	$	2,324	$	1,735
Assets of consolidated funds and CLOs	1,611		1,449
Other assets	754		792
Total assets	$	4,689	$	3,976

Liabilities of consolidated funds and CLOs	$	1,494	$	1,342
Other liabilities	526		365
Total liabilities	$	2,020	$	1,707

Equity attributable to investees	$	2,629	$	2,234
Noncontrolling interest	40		35
Total equity	$	2,669	$	2,269


	Year Ended December 31,
	2024		2023		2022
	(in millions)
Fee income	$	196	$	57	$	15
Net gains (losses) on investments and investment income	400		129		(365)
Income of consolidated funds and CLOs	138		37		—
Other income	48		39		35
Total revenues	$	782	$	262	$	(315)

Expenses of consolidated funds and CLOs	$	93	$	25	$	—
Other expenses	279		108		49
Total expenses	$	372	$	133	$	49

Net income (loss)	$	410	$	129	$	(364)
Net income (loss) attributable to investees	$	400	$	127	$	(364)


	Year Ended December 31,
	2024		2023		2022
	(in millions)
Gross realized gains on sales of available-for-sale securities (1)	$	3	$	21	$	3
Gross realized losses on sales of available-for-sale securities (2)	(12)		(19)		(45)
Net foreign currency gains (losses)	(2)		(1)		(4)
Change in the allowance for credit losses and intent to sell (3)	18		(14)		(21)
Other net realized gains (losses)	2		(1)		11
Net realized investment gains (losses)	$	9	$	(14)	$	(56)


	Year Ended December 31,
	2024		2023		2022
	(in millions)
Balance, beginning of period	$	77	$	65	$	42
Additions for securities for which credit losses were not previously recognized	4		—		7
Additions for purchases of securities accounted for as purchased financial assets with credit deterioration	—		—		2
Additions (reductions) for securities for which credit losses were previously recognized	(21)		12		14

Balance, end of period	$	60	$	77	$	65

During 2022, the Company purchased a Loss Mitigation Security with a fair value of $22 million that was accounted for as a PCD security. At acquisition, this security had unpaid principal on remaining collateral of $31 million, an allowance for credit losses of $2 million, and a non-credit related discount of $7 million. The Company did not purchase any other securities with credit deterioration during the periods presented. Most of the Company’s securities with credit deterioration are Loss Mitigation Securities.