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Investments (Tables)

9 Months Ended

Sep. 30, 2024

The significant components of Net investment income are presented in the following table.


Periods ended September 30	Three Months				Nine Months
(In millions)	2024		2023		2024		2023
Fixed maturity securities	$	517	$	491	$	1,530	$	1,443
Equity securities	21		9		56		42
Limited partnership investments	67		28		195		108
Mortgage loans	14		15		43		43
Short-term investments	20		23		68		51
Trading portfolio	—		1		1		4
Other	8		6		23		20
Gross investment income	647		573		1,916		1,711
Investment expense	(21)		(20)		(63)		(58)
Net investment income	$	626	$	553	$	1,853	$	1,653
Net investment income (loss) recognized due to the change in fair value of common stock held as of September 30, 2024 and 2023	$	11	$	(3)	$	20	$	2

Net realized investment gains (losses)

Net investment gains (losses) are presented in the following table.


Periods ended September 30	Three Months				Nine Months
(In millions)	2024		2023		2024		2023
Net investment gains (losses):
Fixed maturity securities:
Gross gains	$	11	$	12	$	38	$	55
Gross losses	(33)		(49)		(104)		(141)
Net investment gains (losses) on fixed maturity securities	(22)		(37)		(66)		(86)
Equity securities	13		2		25		(9)

Mortgage loans	—		(5)		—		(11)
Short-term investments and other	(1)		2		(1)		1
Net investment gains (losses)	$	(10)	$	(38)	$	(42)	$	(105)
Net investment gains (losses) recognized due to the change in fair value of non-redeemable preferred stock held as of September 30, 2024 and 2023	$	13	$	2	$	24	$	2

Components of net other than temporary impairment losses recognized in earnings by asset type

The table includes losses (gains) on securities with an intention to sell and changes in the allowance for credit losses on securities since acquisition date.


Periods ended September 30	Three Months				Nine Months
(In millions)	2024		2023		2024		2023
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	8	$	8	$	23	$	25
Asset-backed	4		4		9		12
Impairment losses (gains) recognized in earnings	$	12	$	12	$	32	$	37

Summary of fixed maturity securities

The following tables present a summary of fixed maturity securities.


September 30, 2024	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Estimated Fair Value
(In millions)
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	25,872	$	826	$	900	$	6	$	25,792
States, municipalities and political subdivisions	7,406		359		617		—		7,148
Asset-backed:
Residential mortgage-backed	3,684		32		362		—		3,354
Commercial mortgage-backed	1,867		15		141		—		1,741
Other asset-backed	3,743		40		186		12		3,585
Total asset-backed	9,294		87		689		12		8,680
U.S. Treasury and obligations of government-sponsored enterprises	224		2		4		—		222
Foreign government	755		8		26		—		737

Total fixed maturity securities available-for-sale	43,551		1,282		2,236		18		42,579
Total fixed maturity securities trading	—		—		—		—		—
Total fixed maturity securities	$	43,551	$	1,282	$	2,236	$	18	$	42,579


December 31, 2023	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Estimated Fair Value
(In millions)
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	25,020	$	597	$	1,345	$	4	$	24,268
States, municipalities and political subdivisions	7,713		382		703		—		7,392
Asset-backed:
Residential mortgage-backed	3,411		16		425		—		3,002
Commercial mortgage-backed	1,862		7		230		8		1,631
Other asset-backed	3,515		13		256		4		3,268
Total asset-backed	8,788		36		911		12		7,901
U.S. Treasury and obligations of government-sponsored enterprises	152		1		2		—		151
Foreign government	741		6		34		—		713

Total fixed maturity securities available-for-sale	42,414		1,022		2,995		16		40,425
Total fixed maturity securities trading	—		—		—		—		—
Total fixed maturity securities	$	42,414	$	1,022	$	2,995	$	16	$	40,425

Debt securities, available-for-sale, unrealized loss position, fair value

The following tables present the estimated fair value and gross unrealized losses of available-for-sale fixed maturity securities in a gross unrealized loss position for which an allowance for credit loss has not been recorded, by the length of time in which the securities have continuously been in that position.


	Less than 12 Months				12 Months or Longer				Total
September 30, 2024	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
(In millions)
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	1,664	$	31	$	11,240	$	869	$	12,904	$	900
States, municipalities and political subdivisions	422		7		3,155		610		3,577		617
Asset-backed:
Residential mortgage-backed	130		2		2,162		360		2,292		362
Commercial mortgage-backed	112		—		1,134		141		1,246		141
Other asset-backed	151		4		1,638		182		1,789		186
Total asset-backed	393		6		4,934		683		5,327		689
U.S. Treasury and obligations of government-sponsored enterprises	45		2		45		2		90		4
Foreign government	99		1		403		25		502		26
Total	$	2,623	$	47	$	19,777	$	2,189	$	22,400	$	2,236


	Less than 12 Months				12 Months or Longer				Total
December 31, 2023	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
(In millions)
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	1,943	$	37	$	13,406	$	1,308	$	15,349	$	1,345
States, municipalities and political subdivisions	598		18		3,104		685		3,702		703
Asset-backed:
Residential mortgage-backed	233		4		2,212		421		2,445		425
Commercial mortgage-backed	200		5		1,184		225		1,384		230
Other asset-backed	392		8		1,869		248		2,261		256
Total asset-backed	825		17		5,265		894		6,090		911
U.S. Treasury and obligations of government-sponsored enterprises	65		1		23		1		88		2
Foreign government	52		1		450		33		502		34
Total	$	3,483	$	74	$	22,248	$	2,921	$	25,731	$	2,995

The following table presents the estimated fair value and gross unrealized losses of available-for-sale fixed maturity securities in a gross unrealized loss position for which an allowance for credit loss has not been recorded, by ratings distribution.


	September 30, 2024				December 31, 2023
(In millions)	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
U.S. Government, Government agencies and Government-sponsored enterprises	$	2,127	$	265	$	2,273	$	309
AAA	1,277		221		1,524		261
AA	3,641		547		3,817		658
A	5,229		405		5,652		517
BBB	9,243		689		11,523		1,095
Non-investment grade	883		109		942		155
Total	$	22,400	$	2,236	$	25,731	$	2,995

Debt securities, available-for-sale, allowance for credit loss

The following tables present the activity related to the allowance on available-for-sale securities with credit impairments and purchased credit-deteriorated (PCD) assets. Accrued interest receivable on available-for-sale fixed maturity securities totaled $451 million, $435 million, and $430 million as of September 30, 2024, December 31, 2023, and September 30, 2023 and is excluded from the estimate of expected credit losses and the amortized cost basis in the tables included within this Note.


(In millions)	Corporate and other bonds		Asset-backed		Total
Allowance for credit losses:
Balance as of July 1, 2024	$	—	$	17	$	17
Additions to the allowance for credit losses:
Securities for which credit losses were not previously recorded	4		—		4
Available-for-sale securities accounted for as PCD assets	2		—		2

Reductions to the allowance for credit losses:
Securities sold during the period (realized)	—		—		—
Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis	—		—		—
Write-offs charged against the allowance	—		9		9
Recoveries of amounts previously written off	—		—		—

Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period	—		4		4
Balance as of September 30, 2024	$	6	$	12	$	18



(In millions)	Corporate and other bonds		Asset-backed		Total
Allowance for credit losses:
Balance as of July 1, 2023	$	13	$	9	$	22
Additions to the allowance for credit losses:
Securities for which credit losses were not previously recorded	5		—		5
Available-for-sale securities accounted for as PCD assets	2		—		2

Reductions to the allowance for credit losses:
Securities sold during the period (realized)	—		—		—
Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis	—		—		—
Write-offs charged against the allowance	15		—		15
Recoveries of amounts previously written off	—		—		—

Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period	—		4		4
Balance as of September 30, 2023	$	5	$	13	$	18


(In millions)	Corporate and other bonds		Asset-backed		Total
Allowance for credit losses:
Balance as of January 1, 2024	$	4	$	12	$	16
Additions to the allowance for credit losses:
Securities for which credit losses were not previously recorded	4		—		4
Available-for-sale securities accounted for as PCD assets	2		—		2

Reductions to the allowance for credit losses:
Securities sold during the period (realized)	3		1		4
Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis	1		—		1
Write-offs charged against the allowance	—		9		9
Recoveries of amounts previously written off	—		—		—

Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period	—		10		10
Balance as of September 30, 2024	$	6	$	12	$	18



(In millions)	Corporate and other bonds		Asset-backed		Total
Allowance for credit losses:
Balance as of January 1, 2023	$	—	$	1	$	1
Additions to the allowance for credit losses:
Securities for which credit losses were not previously recorded	6		7		13
Available-for-sale securities accounted for as PCD assets	22		—		22

Reductions to the allowance for credit losses:
Securities sold during the period (realized)	6		—		6
Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis	3		—		3
Write-offs charged against the allowance	15		—		15
Recoveries of amounts previously written off	—		—		—

Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period	1		5		6
Balance as of September 30, 2023	$	5	$	13	$	18

Contractual maturity

The following table presents available-for-sale fixed maturity securities by contractual maturity.


	September 30, 2024				December 31, 2023
(In millions)	Cost or Amortized Cost		Estimated Fair Value		Cost or Amortized Cost		Estimated Fair Value
Due in one year or less	$	1,585	$	1,565	$	1,121	$	1,091
Due after one year through five years	11,948		11,800		11,563		11,180
Due after five years through ten years	13,333		12,959		13,359		12,573
Due after ten years	16,685		16,255		16,371		15,581
Total	$	43,551	$	42,579	$	42,414	$	40,425

Financing receivable credit quality indicators

The following table presents the amortized cost basis of mortgage loans for each credit quality indicator by year of origination. The primary credit quality indicators utilized are debt service coverage ratios (DSCR) and loan-to-value ratios (LTV).


September 30, 2024	Mortgage Loans Amortized Cost Basis by Origination Year (1)
(In millions)	2024		2023		2022		2021		2020		Prior		Total
DSCR ≥1.6x
LTV less than 55%	$	—	$	33	$	9	$	2	$	97	$	242	$	383
LTV 55% to 65%	—		—		—		5		—		—		5
LTV greater than 65%	—		—		30		12		—		—		42
DSCR 1.2x - 1.6x
LTV less than 55%	—		28		5		—		13		50		96
LTV 55% to 65%	43		20		36		36		4		31		170
LTV greater than 65%	—		13		64		—		20		—		97
DSCR ≤1.2
LTV less than 55%	—		—		—		—		—		—		—
LTV 55% to 65%	—		32		75		—		—		41		148
LTV greater than 65%	—		—		28		21		—		48		97
Total	$	43	$	126	$	247	$	76	$	134	$	412	$	1,038

(1) The values in the table above reflect DSCR on a standardized amortization period and LTV based on the most recent appraised values trended forward using changes in a commercial real estate price index.