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Investments (Tables)

3 Months Ended

Mar. 31, 2025

Schedule of Available-for-Sale Securities Reconciliation

The amortized cost, gross unrealized gains and losses, allowance for credit losses and fair value of fixed maturity available-for-sale (“AFS”) securities (in millions) were as follows:


	As of March 31, 2025

	Amortized Cost		Gross Unrealized				Allowance for Credit Losses		Fair Value
			Gains		Losses
Fixed maturity AFS securities:
Corporate bonds	$	75,363	$	630	$	9,085	$	23	$	66,885
U.S. government bonds	567		5		34		–		538
State and municipal bonds	2,744		21		415		–		2,350
Foreign government bonds	282		13		56		–		239
RMBS	2,104		29		186		6		1,941
CMBS	1,961		6		137		–		1,830
ABS	14,515		110		340		44		14,241
Hybrid and redeemable preferred securities	259		25		10		1		273
Total fixed maturity AFS securities	$	97,795	$	839	$	10,263	$	74	$	88,297


	As of December 31, 2024
	Amortized Cost		Gross Unrealized				Allowance for Credit Losses		Fair Value
			Gains		Losses
Fixed maturity AFS securities:
Corporate bonds	$	75,556	$	563	$	9,655	$	14	$	66,450
U.S. government bonds	429		3		41		–		391
State and municipal bonds	2,798		18		445		–		2,371
Foreign government bonds	282		11		56		–		237
RMBS	2,066		24		220		7		1,863
CMBS	1,817		4		156		–		1,665
ABS	14,226		99		421		24		13,880
Hybrid and redeemable preferred securities	241		25		11		1		254
Total fixed maturity AFS securities	$	97,415	$	747	$	11,005	$	46	$	87,111

Investments Classified by Contractual Maturity Date

The amortized cost and fair value of fixed maturity AFS securities by contractual maturities (in millions) as of March 31, 2025, were as follows:


	Amortized Cost		Fair Value
Due in one year or less	$	4,353	$	4,332
Due after one year through five years	18,500		18,050
Due after five years through ten years	13,107		12,271
Due after ten years	43,255		35,632
Subtotal	79,215		70,285
Structured securities (RMBS, CMBS, ABS)	18,580		18,012
Total fixed maturity AFS securities	$	97,795	$	88,297

Schedule of Available-for-Sale Securities Unrealized Loss Position

The fair value and gross unrealized losses of fixed maturity AFS securities (dollars in millions) for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows:


	As of March 31, 2025

	Less Than or Equal to Twelve Months				Greater Than Twelve Months				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses (1)
Fixed maturity AFS securities:
Corporate bonds	$	23,140	$	3,798	$	29,434	$	5,287	$	52,574	$	9,085
U.S. government bonds	67		2		230		32		297		34
State and municipal bonds	940		214		766		201		1,706		415
Foreign government bonds	32		6		119		50		151		56
RMBS	660		58		786		128		1,446		186
CMBS	610		43		785		94		1,395		137
ABS	3,820		94		3,522		246		7,342		340
Hybrid and redeemable
preferred securities	24		2		92		8		116		10
Total fixed maturity AFS securities	$	29,293	$	4,217	$	35,734	$	6,046	$	65,027	$	10,263

Total number of fixed maturity AFS securities in an unrealized loss position											6,835


	As of December 31, 2024
	Less Than or Equal to Twelve Months				Greater Than Twelve Months				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses (1)
Fixed maturity AFS securities:
Corporate bonds	$	24,657	$	4,054	$	29,786	$	5,601	$	54,443	$	9,655
U.S. government bonds	86		3		224		38		310		41
State and municipal bonds	1,087		228		760		217		1,847		445
Foreign government bonds	32		5		118		51		150		56
RMBS	795		76		760		144		1,555		220
CMBS	579		50		777		106		1,356		156
ABS	2,907		118		3,827		303		6,734		421
Hybrid and redeemable
preferred securities	23		3		93		8		116		11
Total fixed maturity AFS securities	$	30,166	$	4,537	$	36,345	$	6,468	$	66,511	$	11,005

Total number of fixed maturity AFS securities in an unrealized loss position											6,985

(1) As of March 31, 2025, and December 31, 2024, we recognized $12 million and $23 million of gross unrealized losses, respectively, in other comprehensive income (loss) (“OCI”) for fixed maturity AFS securities for which an allowance for credit losses has been recorded.

The fair value, gross unrealized losses (in millions) and number of fixed maturity AFS securities where the fair value had declined and remained below amortized cost by greater than 20% were as follows:


	As of March 31, 2025

	Fair Value		Gross Unrealized Losses		Number of Securities (1)
Less than six months	$	3,053	$	900	522
Six months or greater, but less than nine months	1,600		518		324
Nine months or greater, but less than twelve months	369		187		208
Twelve months or greater	4,381		2,149		737
Total	$	9,403	$	3,754	1,791


	As of December 31, 2024
	Fair Value		Gross Unrealized Losses		Number of Securities (1)
Less than six months	$	5,405	$	1,621	799
Six months or greater, but less than nine months	371		198		216
Nine months or greater, but less than twelve months	71		28		37
Twelve months or greater	4,440		2,218		741
Total	$	10,287	$	4,065	1,793

(1) We may reflect a security in more than one aging category based on various purchase dates.

Debt Securities, Available-for-Sale

Changes in the allowance for credit losses on fixed maturity AFS securities (in millions), aggregated by investment category, were as follows:


	For the Three Months Ended March 31, 2025
	Corporate Bonds		RMBS		ABS		Hybrids		Total
Balance as of beginning-of-year	$	14	$	7	$	24	$	1	$	46
Additions from purchases of PCD debt securities (1)	–		–		–		–		–
Additions for securities for which credit losses were
not previously recognized	7		–		8		–		15
Additions (reductions) for securities for which
credit losses were previously recognized	2		(1)		12		–		13

Reductions for securities charged off	–		–		–		–		–
Balance as of end-of-period (2)	$	23	$	6	$	44	$	1	$	74


	For the Three Months Ended March 31, 2024
	Corporate Bonds		RMBS		ABS		Hybrids		Total
Balance as of beginning-of-year	$	8	$	6	$	4	$	1	$	19
Additions from purchases of PCD debt securities (1)	–		–		–		–		–
Additions for securities for which credit losses were
not previously recognized	1		–		–		–		1
Additions (reductions) for securities for which
credit losses were previously recognized	2		–		–		–		2
Reductions for disposed securities	(1)		–		–		–		(1)
Reductions for securities charged off	–		–		–		–		–
Balance as of end-of-period (2)	$	10	$	6	$	4	$	1	$	21

(1) Represents purchased credit-deteriorated (“PCD”) fixed maturity AFS securities.

(2) As of March 31, 2025 and 2024, accrued investment income on fixed maturity AFS securities totaled $911 million and $943 million, respectively, and was excluded from the estimate of credit losses.

Composition of Current and Past Due Mortgage Loans on Real Estate

The following provides the current and past due composition of our mortgage loans on real estate (in millions):


	As of March 31, 2025						As of December 31, 2024
	Commercial		Residential		Total		Commercial		Residential		Total
Current	$	17,602	$	3,795	$	21,397	$	17,567	$	3,387	$	20,954
30 to 59 days past due	13		84		97		6		71		77
60 to 89 days past due	3		26		29		–		33		33
90 or more days past due	31		104		135		35		90		125
Allowance for credit losses	(98)		(56)		(154)		(99)		(53)		(152)
Unamortized premium (discount)	(5)		91		86		(6)		83		77
Mark-to-market gains (losses) (1)	(32)		–		(32)		(31)		–		(31)
Total carrying value	$	17,514	$	4,044	$	21,558	$	17,472	$	3,611	$	21,083

(1) Represents the mark-to-market on certain mortgage loans on real estate that support our modified coinsurance agreements, where the investment results are passed directly to the reinsurers, and for which we have elected the fair value option. As of March 31, 2025, and December 31, 2024, the amortized cost and fair value of such mortgage loans on real estate that were in nonaccrual status was $30 million and $21 million, respectively. As of March 31, 2025, and December 31, 2024, there were no such mortgage loans on real estate that were more than 90 days past due and still accruing interest. See Note 12 for additional information.

Amortized Cost of Mortgage Loans on Real Estate on Nonaccrual Status

The amortized cost of mortgage loans on real estate on nonaccrual status (in millions) was as follows, excluding certain mortgage loans on real estate that support our modified coinsurance agreements, where the investment results are passed directly to the reinsurers:


	As of March 31, 2025		As of December 31, 2024

Commercial mortgage loans on real estate	$	1	$	4
Residential mortgage loans on real estate	106		92
Total	$	107	$	96

Financing Receivable Credit Quality Indicators

The amortized cost of commercial mortgage loans on real estate (dollars in millions) by year of origination and credit quality indicator was as follows:


	As of March 31, 2025
	LTV Less Than 65%		Debt-Service Coverage Ratio	LTV 65% to 75%		Debt-Service Coverage Ratio	LTV Greater Than 75%		Debt-Service Coverage Ratio	Total
Origination Year
2025	$	267	1.63	$	18	1.33	$	–	–	$	285
2024	1,551		1.73	74		1.42	1		1.69	1,626
2023	1,346		1.76	40		1.37	2		1.51	1,388
2022	1,718		2.07	87		1.52	8		1.24	1,813
2021	2,247		3.21	46		1.73	9		1.26	2,302
2020 and prior	10,103		2.48	114		1.56	13		1.13	10,230
Total	$	17,232		$	379		$	33		$	17,644


	As of December 31, 2024
	LTV Less Than 65%		Debt-Service Coverage Ratio	LTV 65% to 75%		Debt-Service Coverage Ratio	LTV Greater Than 75%		Debt-Service Coverage Ratio	Total
Origination Year
2024	$	1,548	1.73	$	83	1.41	$	–	–	$	1,631
2023	1,348		1.78	44		1.36	–		–	1,392
2022	1,724		2.11	94		1.55	4		1.30	1,822
2021	2,267		3.50	47		1.52	–		–	2,314
2020	1,167		3.33	4		1.53	–		–	1,171
2019 and prior	9,138		2.38	126		1.58	8		1.30	9,272
Total	$	17,192		$	398		$	12		$	17,602

The amortized cost of residential mortgage loans on real estate (in millions) by year of origination and credit quality indicator was as follows:


	As of March 31, 2025
	Performing		Nonperforming		Total
Origination Year
2025	$	167	$	–	$	167
2024	2,223		29		2,252
2023	495		19		514
2022	471		31		502
2021	415		12		427
2020 and prior	223		15		238
Total	$	3,994	$	106	$	4,100


	As of December 31, 2024
	Performing		Nonperforming		Total
Origination Year
2024	$	1,895	$	14	$	1,909
2023	557		16		573
2022	492		33		525
2021	427		11		438
2020	65		4		69
2019 and prior	136		14		150
Total	$	3,572	$	92	$	3,664

Changes in Allowance for Credit Losses on Mortgage Loans on Real Estate

Changes in the allowance for credit losses on mortgage loans on real estate (in millions) were as follows:


	For the Three Months Ended March 31, 2025
	Commercial		Residential		Total
Balance as of beginning-of-year	$	99	$	53	$	152
Additions (reductions) from provision for credit loss
expense (1)	(1)		3		2
Additions from purchases of PCD mortgage loans on
real estate	–		–		–

Balance as of end-of-period (2)	$	98	$	56	$	154


	For the Three Months Ended March 31, 2024
	Commercial		Residential		Total
Balance as of beginning-of-year	$	86	$	28	$	114
Additions (reductions) from provision for credit loss
expense (1)	(2)		3		1
Additions from purchases of PCD mortgage loans on
real estate	–		–		–
Balance as of end-of-period (2)	$	84	$	31	$	115

(1) We recognized $1 million of credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate for the three months ended March 31, 2025 and 2024.

(2) Accrued investment income on mortgage loans on real estate totaled $101 million and $69 million as of March 31, 2025 and 2024, respectively, and was excluded from the estimate of credit losses.

Credit Loss Expense Incurred

Details underlying credit loss benefit (expense) incurred as a result of impairments that were recognized in net income (loss) and included in realized gain (loss) on fixed maturity AFS securities (in millions) were as follows:


	For the Three Months Ended March 31,
	2025		2024










Credit Loss Benefit (Expense)
Fixed maturity AFS securities:
Corporate bonds	$	(9)	$	(2)
RMBS	1		–
ABS	(20)		–
Total credit loss benefit (expense)	$	(28)	$	(2)

Payables for Collateral on Investments

The carrying value of the payables for collateral on investments included on the Consolidated Balance Sheets and the fair value of the related investments or collateral (in millions) consisted of the following:


	As of March 31, 2025				As of December 31, 2024
	Carrying Value		Fair Value		Carrying Value		Fair Value
Collateral payable for derivative investments (1)	$	5,558	$	5,558	$	7,213	$	7,213
Securities pledged under securities lending agreements (2)	167		161		157		151
Securities pledged under repurchase agreements (3)	57		59		–		–
Investments pledged for FHLBI (4)	2,500		3,480		2,650		3,657
Total payables for collateral on investments	$	8,282	$	9,258	$	10,020	$	11,021

(1) We obtain collateral based upon contractual provisions with our counterparties. These agreements take into consideration the counterparties’ credit rating as compared to ours, the fair value of the derivative investments and specified thresholds that if exceeded result in the receipt of cash that is typically invested in cash and invested cash or fixed maturity AFS securities. This also includes interest payable on collateral. See Note 5 for additional information.

(2) Our pledged securities under securities lending agreements are included in fixed maturity AFS securities on the Consolidated Balance Sheets. We generally obtain collateral in an amount equal to 102% and 105% of the fair value of the domestic and foreign securities, respectively. We value collateral daily and obtain additional collateral when deemed appropriate. The cash received in our securities lending program is typically invested in cash and invested cash or fixed maturity AFS securities.

(3) Our pledged securities under repurchase agreements are included in fixed maturity AFS securities on the Consolidated Balance Sheets. The collateral requirements are generally 80% to 95% of the fair value of the securities, and our agreements with third parties contain contractual provisions to allow for additional collateral to be obtained when necessary. The cash received in our repurchase program is typically invested in cash and invested cash or fixed maturity AFS securities.

(4) Our pledged investments for Federal Home Loan Bank (“FHLB”) of Indianapolis (“FHLBI”) are included in fixed maturity AFS securities and mortgage loans on real estate on the Consolidated Balance Sheets. The collateral requirements are generally 105% to 115% of the fair value for fixed maturity AFS securities and 155% to 175% of the fair value for mortgage loans on real estate. The cash received in these transactions is primarily invested in cash and invested cash or fixed maturity AFS securities.

Schedule of Increase (Decrease) in Payables for Collateral on Investments

Increase (decrease) in payables for collateral on investments (in millions) consisted of the following:


	For the Three Months Ended March 31,
	2025		2024
Collateral payable for derivative investments	$	(1,655)	$	1,684
Securities pledged under securities
lending agreements	10		78
Securities pledged under repurchase agreements	57		–
Investments pledged for FHLBI	(150)		250
Total increase (decrease) in payables for
collateral on investments	$	(1,738)	$	2,012

Schedule of Securities Pledged by Contractual Maturity

The remaining contractual maturities of securities lending transactions accounted for as secured borrowings (in millions) were as follows:


	As of March 31, 2025
	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater Than 90 Days		Total
Securities Lending
Corporate bonds	$	157	$	–	$	–	$	–	$	157

Equity securities	10		–		–		–		10

Total gross secured borrowings	$	167	$	–	$	–	$	–	$	167


	As of December 31, 2024
	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater Than 90 Days		Total
Securities Lending
Corporate bonds	$	144	$	–	$	–	$	–	$	144
U.S. government bonds	1		–		–		–		1
Equity securities	12		–		–		–		12
Total gross secured borrowings	$	157	$	–	$	–	$	–	$	157