The largest component of the investment portfolio is fixed-maturity securities, the majority of which are investment grade and 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
	March 31, 2025		December 31, 2024
	(in millions)
Fixed-maturity securities, available-for-sale	$	6,415	$	6,369
Fixed-maturity securities, trading	137		147
Short-term investments	1,158		1,221
Other invested assets:
Equity method investments:
Ownership interest in Sound Point	411		418
Funds and other investments	531		496
Other	18		12
Total (1)	$	8,670	$	8,663

(1) In the investment portfolio, the aggregate carrying value of Sound Point managed investments was $547 million and $569 million as of March 31, 2025 and December 31, 2024, respectively, excluding the Company’s ownership interest in Sound Point of $411 million and $418 million as of March 31, 2025 and December 31, 2024, respectively, and excluding certain investments in funds that are accounted for as CIVs.

As of March 31, 2025 and December 31, 2024, 12.3% and 12.6% of available-for-sale fixed-maturity securities were either rated BIG or not rated, primarily consisting of Loss Mitigation Securities and collateralized loan obligation (CLO) equity tranches. As of March 31, 2025 and December 31, 2024, the carrying value of Loss Mitigation Securities was $497 million and $479 million, respectively. As of March 31, 2025 and December 31, 2024, the carrying value of CLO equity tranches was $240 million and $277 million, respectively. Fixed-maturity securities classified as trading securities primarily include contingent value instruments (CVIs) and are not rated.

The investment portfolio includes $892 million in alternative investments primarily consisting of (i) CLO equity securities classified as available-for-sale fixed-maturity securities, and (ii) $549 million of investments across various asset classes that are reported in other invested assets. In addition, as of March 31, 2025 and December 31, 2024, $39 million and $33 million, respectively, of the Company’s total alternative investments was invested in a Sound Point managed fund which was reported in “assets of CIVs,” “other liabilities” and “nonredeemable noncontrolling interests.” See Note 8, Financial Guaranty Variable Interest Entities and Consolidated Investment Vehicles. The Company’s alternative investment commitments as of March 31, 2025 include $608 million in unfunded commitments which together with its $892 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 Company’s alternative investments agreement with Sound Point.

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. As of March 31, 2025, the Company estimated that it would purchase approximately £110 million (or $142 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	29	%	$	2,003	$	(14)	$	27	$	(92)	$	1,924
U.S. government and agencies	1		76		—		1		(5)		72
Corporate securities (2)	39		2,630		(7)		17		(163)		2,477
Mortgage-backed securities (3):
RMBS	10		649		(22)		5		(63)		569
Commercial mortgage-backed securities (CMBS)	3		183		—		1		(2)		182
Asset-backed securities:
CLOs	8		571		(1)		3		(31)		542
Other	9		581		(1)		2		(4)		578
Non-U.S. government securities	1		81		—		1		(11)		71
Total available-for-sale fixed-maturity securities	100	%	$	6,774	$	(45)	$	57	$	(371)	$	6,415


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
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


	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	$	428	$	(4)	$	966	$	(88)	$	1,394	$	(92)
U.S. government and agencies	—		—		29		(5)		29		(5)
Corporate securities	465		(8)		947		(122)		1,412		(130)
Mortgage-backed securities:
RMBS	59		(1)		121		(8)		180		(9)
CMBS	9		—		97		(2)		106		(2)
Asset-backed securities:
CLOs	243		(23)		30		—		273		(23)
Other	82		(1)		13		—		95		(1)
Non-U.S. government securities	25		(1)		20		(10)		45		(11)
Total	$	1,311	$	(38)	$	2,223	$	(235)	$	3,534	$	(273)
Number of securities (1)			416				1,006				1,399


	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

(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 March 31, 2025 and December 31, 2024 were primarily related to higher interest rates rather than credit quality. As of March 31, 2025, 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 March 31, 2025, of the securities in an unrealized loss position for which an allowance for credit loss was not recorded, 371 securities had unrealized losses in excess of 10% of their carrying value, whereas as of December 31, 2024, 438 securities had unrealized losses in excess of 10% of their carrying value. The total unrealized loss for these securities was $202 million as of March 31, 2025 and $223 million as of December 31, 2024.

The amortized cost and estimated fair value of available-for-sale fixed-maturity securities by contractual maturity as of March 31, 2025 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	$	206	$	205
Due after one year through five years	1,295		1,269
Due after five years through 10 years	2,100		2,027
Due after 10 years	2,341		2,163
Mortgage-backed securities:
RMBS	649		569
CMBS	183		182
Total	$	6,774	$	6,415

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 $82 million as of March 31, 2025 and $79 million as of December 31, 2024. 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 $1,079 million and $1,135 million as of March 31, 2025 and December 31, 2024, respectively.


	First Quarter
		2025		2024
		(in millions)
Investment income:
Fixed-maturity securities, available-for-sale (1)		$	74	$	62
Short-term investments		13		23
Other invested assets		1		—
Investment income		88		85
Investment expenses		(1)		(1)
Net investment income		$	87	$	84

Fair value gains (losses) on trading securities (2)		$	1	$	26

Equity in earnings (losses) of investees:
Ownership interest in Sound Point		$	13	$	4
Funds and other investments		40		20
Equity in earnings (losses) of investees		$	53	$	24

A majority of the trading securities are Puerto Rico CVIs. In 2022, as a result of the resolution of certain defaulting Puerto Rico exposures, the Company received Puerto Rico CVIs, along with other consideration. 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 March 31, 2025, the remaining CVIs had a fair value of $115 million. The Company may sell in the future any CVIs it continues to hold.


	First Quarter
		2025		2024
		(in millions)
Gross realized gains on sales of available-for-sale securities		$	3	$	1
Gross realized losses on sales of available-for-sale securities		(8)		(3)
Net foreign currency gains (losses)		(1)		—
Change in the allowance for credit losses and intent to sell (1)		(10)		10
Net realized investment gains (losses)		$	(16)	$	8


	First Quarter
			2025		2024
		(in millions)
Balance, beginning of period			$	60	$	77
Additions for securities for which credit losses were not previously recognized			1		—
Additions (reductions) for securities for which credit losses were previously recognized			9		(10)
Write-offs charged against the allowance			(25)		—
Balance, end of period			$	45	$	67