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Investments (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2025

	Amortized Cost		Gross Unrealized				Allowance for Credit Losses		Fair Value
			Gains		Losses
Fixed maturity AFS securities:
Corporate bonds	$	75,551	$	706	$	8,849	$	36	$	67,372
U.S. government bonds	591		6		34		–		563
State and municipal bonds	2,663		17		426		–		2,254
Foreign government bonds	281		13		55		–		239
RMBS	2,217		30		179		5		2,063
CMBS	2,080		10		118		–		1,972
ABS	14,892		116		307		43		14,658
Hybrid and redeemable preferred securities	254		23		11		1		265
Total fixed maturity AFS securities	$	98,529	$	921	$	9,979	$	85	$	89,386


	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 June 30, 2025, were as follows:


	Amortized Cost		Fair Value
Due in one year or less	$	4,274	$	4,243
Due after one year through five years	19,470		19,110
Due after five years through ten years	12,274		11,668
Due after ten years	43,322		35,672
Subtotal	79,340		70,693
Structured securities (RMBS, CMBS, ABS)	19,189		18,693
Total fixed maturity AFS securities	$	98,529	$	89,386

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 June 30, 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	$	16,755	$	3,309	$	33,798	$	5,540	$	50,553	$	8,849
U.S. government bonds	51		2		223		32		274		34
State and municipal bonds	742		192		965		234		1,707		426
Foreign government bonds	26		4		126		51		152		55
RMBS	645		52		832		127		1,477		179
CMBS	329		18		1,016		100		1,345		118
ABS	2,379		48		4,105		259		6,484		307
Hybrid and redeemable
preferred securities	22		2		90		9		112		11
Total fixed maturity AFS securities	$	20,949	$	3,627	$	41,155	$	6,352	$	62,104	$	9,979

Total number of fixed maturity AFS securities in an unrealized loss position											6,381


	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 June 30, 2025, and December 31, 2024, we recognized $18 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 June 30, 2025

	Fair Value		Gross Unrealized Losses		Number of Securities (1)
Less than six months	$	1,846	$	571	359
Six months or greater, but less than nine months	1,215		372		256
Nine months or greater, but less than twelve months	1,516		498		304
Twelve months or greater	4,651		2,294		796
Total	$	9,228	$	3,735	1,715


	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:


	As of or For the Three Months Ended June 30, 2025
	Corporate Bonds		RMBS		ABS		Hybrids		Total
Balance as of beginning-of-period	$	23	$	6	$	44	$	1	$	74
Additions from purchases of PCD debt securities (1)	–		–		–		–		–
Additions for securities for which credit losses were
not previously recognized	17		–		–		–		17
Additions (reductions) for securities for which
credit losses were previously recognized	4		(1)		(1)		–		2

Reductions for securities charged off	(8)		–		–		–		(8)
Balance as of end-of-period (2)	$	36	$	5	$	43	$	1	$	85


	As of or For the Six Months Ended June 30, 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	25		–		8		–		33
Additions (reductions) for securities for which
credit losses were previously recognized	5		(2)		11		–		14

Reductions for securities charged-off	(8)		–		–		–		(8)
Balance as of end-of-period (2)	$	36	$	5	$	43	$	1	$	85


	As of or For the Three Months Ended June 30, 2024
	Corporate Bonds		RMBS		ABS		Hybrids		Total
Balance as of beginning-of-period	$	10	$	6	$	4	$	1	$	21
Additions from purchases of PCD debt securities (1)	–		–		–		–		–
Additions for securities for which credit losses were
not previously recognized	1		–		15		–		16
Additions (reductions) for securities for which
credit losses were previously recognized	8		–		–		–		8
Reductions for disposed securities	(1)		–		–		–		(1)
Reductions for securities charged off	(5)		–		–		–		(5)
Balance as of end-of-period (2)	$	13	$	6	$	19	$	1	$	39


	As of or For the Six Months Ended June 30, 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	2		–		15		–		17
Additions (reductions) for securities for which
credit losses were previously recognized	11		–		–		–		11
Reductions for disposed securities	(3)		–		–		–		(3)
Reductions for securities charged-off	(5)		–		–		–		(5)
Balance as of end-of-period (2)	$	13	$	6	$	19	$	1	$	39

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

(2) As of June 30, 2025 and 2024, accrued investment income on fixed maturity AFS securities totaled $886 million and $906 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 June 30, 2025						As of December 31, 2024
	Commercial		Residential		Total		Commercial		Residential		Total
Current	$	17,644	$	4,154	$	21,798	$	17,567	$	3,387	$	20,954
30 to 59 days past due	–		92		92		6		71		77
60 to 89 days past due	–		38		38		–		33		33
90 or more days past due	57		114		171		35		90		125
Allowance for credit losses	(97)		(65)		(162)		(99)		(53)		(152)
Unamortized premium (discount)	(5)		97		92		(6)		83		77
Mark-to-market gains (losses) (1)	(33)		–		(33)		(31)		–		(31)
Total carrying value	$	17,566	$	4,430	$	21,996	$	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 June 30, 2025, the amortized cost and fair value of such mortgage loans on real estate that were in nonaccrual status was $48 million and $30 million, respectively. As of 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 June 30, 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. For additional information, see “Fair Value Option” in Note 13.

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 June 30, 2025		As of December 31, 2024

Commercial mortgage loans on real estate	$	10	$	4
Residential mortgage loans on real estate	117		92
Total	$	127	$	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 June 30, 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	$	630	1.65	$	65	1.25	$	13	1.14	$	708
2024	1,540		1.73	73		1.42	7		1.48	1,620
2023	1,343		1.77	39		1.37	2		1.12	1,384
2022	1,713		2.16	86		1.54	5		1.37	1,804
2021	2,242		3.71	41		1.66	9		1.58	2,292
2020 and prior	9,799		2.56	56		1.45	33		2.09	9,888
Total	$	17,267		$	360		$	69		$	17,696


	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 June 30, 2025
	Performing		Nonperforming		Total
Origination Year
2025	$	754	$	–	$	754
2024	2,074		39		2,113
2023	472		20		492
2022	457		33		490
2021	404		14		418
2020 and prior	217		11		228
Total	$	4,378	$	117	$	4,495


	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:


	As of or For the Three Months Ended June 30, 2025
	Commercial		Residential		Total
Balance as of beginning-of-period	$	98	$	56	$	154
Additions (reductions) from provision for credit loss
expense (1)	(1)		9		8
Additions from purchases of PCD mortgage loans on
real estate	–		–		–

Balance as of end-of-period (2)	$	97	$	65	$	162


	As of or For the Six Months Ended June 30, 2025
	Commercial		Residential		Total
Balance as of beginning-of-year	$	99	$	53	$	152
Additions (reductions) from provision for credit loss
expense (1)	(2)		12		10
Additions from purchases of PCD mortgage loans on
real estate	–		–		–

Balance as of end-of-period (2)	$	97	$	65	$	162


	As of or For the Three Months Ended June 30, 2024
	Commercial		Residential		Total
Balance as of beginning-of-period	$	84	$	31	$	115
Additions (reductions) from provision for credit loss
expense (1)	9		9		18
Additions from purchases of PCD mortgage loans on
real estate	–		–		–
Balance as of end-of-period (2)	$	93	$	40	$	133


	As of or For the Six Months Ended June 30, 2024
	Commercial		Residential		Total
Balance as of beginning-of-year	$	86	$	28	$	114
Additions (reductions) from provision for credit loss
expense (1)	7		12		19
Additions from purchases of PCD mortgage loans on
real estate	–		–		–
Balance as of end-of-period (2)	$	93	$	40	$	133

(1) We recognized less than $1 million of credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate for the three months ended June 30, 2025 and 2024, and less than $1 million and $1 million for the six months ended June 30, 2025 and 2024, respectively.

(2) Accrued investment income on mortgage loans on real estate totaled $107 million and $81 million as of June 30, 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 June 30,				For the Six Months Ended June 30,
	2025		2024		2025		2024










Credit Loss Benefit (Expense)
Fixed maturity AFS securities:
Corporate bonds	$	(21)	$	(8)	$	(30)	$	(10)
RMBS	1		–		2		–
ABS	1		(15)		(19)		(15)
Total credit loss benefit (expense)	$	(19)	$	(23)	$	(47)	$	(25)

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 June 30, 2025				As of December 31, 2024
	Carrying Value		Fair Value		Carrying Value		Fair Value
Collateral payable for derivative investments (1)	$	5,003	$	5,003	$	7,213	$	7,213
Securities pledged under securities lending agreements (2)	155		150		157		151
Securities pledged under repurchase agreements (3)	418		435		–		–
Investments pledged for FHLBI (4)	2,890		4,124		2,650		3,657
Total payables for collateral on investments	$	8,466	$	9,712	$	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 Six Months Ended June 30,
	2025		2024
Collateral payable for derivative investments	$	(2,210)	$	2,462
Securities pledged under securities
lending agreements	(2)		(3)
Securities pledged under repurchase agreements	418		–
Investments pledged for FHLBI	240		550
Total increase (decrease) in payables for
collateral on investments	$	(1,554)	$	3,009

Schedule of Securities Pledged by Contractual Maturity

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


	As of June 30, 2025
	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater Than 90 Days		Total
Repurchase Agreements
Corporate bonds	$	–	$	–	$	–	$	418	$	418
Securities Lending
Corporate bonds	$	143	$	–	$	–	$	–	$	143
State and municipal bonds	4		–		–		–		4
Foreign government bonds	2		–		–		–		2
Equity securities	6		–		–		–		6
Total gross secured borrowings	$	155	$	–	$	–	$	418	$	573


	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