
Year Ended December 31	2023		2022		2021
(In millions)

Fixed maturity securities	$	1,941	$	1,787	$	1,707
Limited partnership investments	177		(6)		375
Short-term investments	78		17		2
Equity securities (a)	63		23		83
Income from trading portfolio (a)	125				106
Other	105		65		61
Total investment income	2,489		1,886		2,334
Investment expenses	(94)		(84)		(75)
Net investment income	$	2,395	$	1,802	$	2,259
(a) Net investment income recognized due to the change in fair value of equity and trading portfolio securities held as of December 31, 2023, 2022 and 2021	$	38	$	3	$	23


Year Ended December 31	2023		2022		2021
(In millions)

Fixed maturity securities:
Gross gains	$	75	$	120	$	186
Gross losses	(166)		(261)		(90)
Investment gains (losses) on fixed maturity securities	(91)		(141)		96
Equity securities (a)	4		(116)		4
Derivative instruments	(1)		64		6
Short-term investments and other	(11)		(6)		(1)
Gain on acquisition of a joint venture (see Note 2)	46
Altium Packaging (see Note 2)					555

Investment gains (losses)	$	(53)	$	(199)	$	660
(a) Investment gains (losses) recognized due to the change in fair value of non-redeemable preferred stock included within equity securities held as of December 31, 2023, 2022, and 2021	$	14	$	(75)	$	2

Investment gains (losses) for the year ended December 31, 2022 in the table above include an $18 million net gain related to the novation of a coinsurance agreement on CNA’s legacy annuity business, which was transacted on a funds withheld basis and gave rise to an embedded derivative. The net gain of $18 million is comprised of a $62 million gain on the associated embedded derivative partially offset by a $44 million loss on fixed maturity securities supporting the funds withheld liability, transferred with the novation, to recognize unrealized losses which had been included in AOCI since the inception of the coinsurance agreement. Taken together, this net gain is the final recognition of changes in the valuation of the funds held assets and offsets previously recognized investment losses on the associated embedded derivative. The coinsurance agreement was novated in the fourth quarter of 2022.


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:
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

Fixed maturities available-for-sale	42,414		1,022		2,995		16		40,425
Fixed maturities trading	201								201
Total fixed maturity securities	$	42,615	$	1,022	$	2,995	$	16	$	40,626


December 31, 2022

Fixed maturity securities:
Corporate and other bonds	$	23,137	$	301	$	2,009			$	21,429
States, municipalities and political subdivisions	8,918		338		939				8,317
Asset-backed:
Residential mortgage-backed	3,073		5		447				2,631
Commercial mortgage-backed	1,886		4		255				1,635
Other asset-backed	3,287		2		361		$	1	2,927
Total asset-backed	8,246		11		1,063		1		7,193
U.S. Treasury and obligations of government sponsored enterprises	111		1		2				110
Foreign government	617		1		43				575
Redeemable preferred stock	3								3
Fixed maturities available-for-sale	41,032		652		4,056		1		37,627
Fixed maturities trading	70								70
Total fixed maturity securities	$	41,102	$	652	$	4,056	$	1	$	37,697


	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:
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 fixed maturity securities	$	3,483	$	74	$	22,248	$	2,921	$	25,731	$	2,995

December 31, 2022

Fixed maturity securities:
Corporate and other bonds	$	15,946	$	1,585	$	1,634	$	424	$	17,580	$	2,009
States, municipalities and political subdivisions	4,079		769		456		170		4,535		939
Asset-backed:
Residential mortgage-backed	1,406		144		1,143		303		2,549		447
Commercial mortgage-backed	1,167		159		408		96		1,575		255
Other asset-backed	2,087		262		542		99		2,629		361
Total asset-backed	4,660		565		2,093		498		6,753		1,063
U.S. Treasury and obligations of government-sponsored enterprises	76		1		16		1		92		2
Foreign government	473		26		78		17		551		43
Total fixed maturity securities	$	25,234	$	2,946	$	4,277	$	1,110	$	29,511	$	4,056


	December 31, 2023				December 31, 2022
	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
(In millions)

U.S. Government, Government agencies and Government-sponsored enterprises	$	2,273	$	309	$	2,355	$	337
AAA	1,524		261		1,559		298
AA	3,817		658		4,327		817
A	5,652		517		6,615		749
BBB	11,523		1,095		13,226		1,621
Non-investment grade	942		155		1,429		234
Total	$	25,731	$	2,995	$	29,511	$	4,056

Based on current facts and circumstances, the unrealized losses presented in the December 31, 2023 securities in the gross unrealized loss position table above are not believed to be indicative of the ultimate collectibility of the current amortized cost of the securities, but rather are primarily attributable to changes in risk-free interest rates. In reaching this determination, the volatility in risk-free rates and credit spreads, as well as the fact that the unrealized losses are concentrated in investment grade issuers, were considered. Additionally, there is no current intent to sell securities with unrealized losses, nor is it more likely than not that sale will be required prior to recovery of amortized cost; accordingly, it was determined that there are no additional impairment losses to be recorded at December 31, 2023.

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 receivables on available-for-sale fixed maturity securities totaled $435 million and $394 million as of December 31, 2023 and 2022 and are excluded from the estimate of expected credit losses and the amortized cost basis in the tables within this Note.


Year Ended December 31, 2023	Corporate and Other Bonds		Asset-backed		Total
(In millions)

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	10		7		17
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	8				8
Write-offs charged against the allowance	15				15

Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period	1		4		5
Total allowance for credit losses	$	4	$	12	$	16


Year Ended December 31, 2022	Corporate and Other Bonds		Asset-backed		Total
(In millions)

Allowance for credit losses:
Balance as of January 1, 2022	$	11	$	7	$	18
Additions to the allowance for credit losses:

Securities for which credit losses were not previously recorded					—
Available-for-sale securities accounted for as PCD assets			3		3

Reductions to the allowance for credit losses:
Securities sold during the period (realized)					—
Write-offs charged against the allowance	12				12

Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period	1		(9)		(8)
Total allowance for credit losses	$	—	$	1	$	1


December 31	2023				2022
	Cost or Amortized Cost		Estimated Fair Value		Cost or Amortized Cost		Estimated Fair Value
(In millions)

Due in one year or less	$	1,121	$	1,091	$	1,012	$	1,001
Due after one year through five years	11,563		11,180		9,880		9,399
Due after five years through ten years	13,359		12,573		13,788		12,453
Due after ten years	16,371		15,581		16,352		14,774
Total	$	42,414	$	40,425	$	41,032	$	37,627

The carrying value of limited partnerships as of December 31, 2023 and 2022 was approximately $2.2 billion and $2.0 billion, which includes net undistributed earnings of $250 million and $183 million. Limited partnerships comprising 17% of the total carrying value are reported on a current basis through December 31, 2023 with no reporting lag, 4% of the total carrying value are reported on a one month lag and the remainder are reported on more than a one month lag. The number of limited partnerships held and the strategies employed provide diversification to the limited partnership portfolio and the overall invested asset portfolio.

Limited partnerships comprising 85% and 75% of the carrying value at December 31, 2023 and 2022 were invested in private debt and equity. Limited partnerships comprising 15% and 25% of the carrying value as of December 31, 2023 and 2022 employ hedge fund strategies. Private debt and equity funds cover a broad range of investment strategies including buyout, co-investment, private credit, growth capital, distressed investing and real estate. Hedge fund strategies include both long and short positions in fixed income, equity and derivative instruments.

The ten largest limited partnership positions held totaled $622 million and $633 million as of December 31, 2023 and 2022. Based on the most recent information available regarding percentage ownership of the individual limited partnerships, the carrying value reflected on the Consolidated Balance Sheets represents approximately 1% of the aggregate partnership equity at December 31, 2023 and 2022, and the related income reflected on the Consolidated Statements of Operations represents approximately 1%, 2%, and 2% of the changes in aggregate partnership equity for the years ended December 31, 2023, 2022 and 2021.

Private debt, private equity and other non-hedge fund limited partnership investments generally do not permit voluntary withdrawals. Hedge fund limited partnership investments contain withdrawal provisions that generally limit liquidity for a period of thirty days up to one year or longer. Typically, hedge fund withdrawals require advance written notice of up to 90 days.


	Mortgage Loans Amortized Cost Basis by Origination Year (a)
As of December 31, 2023	2023		2022		2021		2020		2019		Prior		Total
(In millions)

DSCR ≥1.6x
LTV less than 55%	$	33	$	9	$	8	$	98	$	60	$	238	$	446
LTV 55% to 65%					5				8				13
LTV greater than 65%			31		11								42
DSCR 1.2x - 1.6x
LTV less than 55%	28		5				14		29		21		97
LTV 55% to 65%	34		36		36		23				32		161
LTV greater than 65%			65										65
DSCR ≤1.2x
LTV less than 55%	6		34										40
LTV 55% to 65%	26		40						43				109
LTV greater than 65%			28		21				41		7		97
Total	$	127	$	248	$	81	$	135	$	181	$	298	$	1,070

Derivatives may be used in the normal course of business, primarily in an attempt to reduce exposure to market risk (principally interest rate risk, credit risk, equity price risk, commodity price risk and foreign currency risk) stemming from various assets and liabilities. The principal objective under such strategies is to achieve the desired reduction in economic risk, even if the position does not receive hedge accounting treatment.

Interest rate swaps, futures and forward commitments to purchase securities may be entered into to manage interest rate risk. Credit derivatives such as credit default swaps may be entered into to modify the credit risk inherent in certain investments. Forward contracts, futures, swaps and options may be used to manage foreign currency and commodity price risk.

In addition to the derivatives used for risk management purposes described above, derivatives may also be used for purposes of income enhancement. Income enhancement transactions include interest rate swaps, call options, put options, credit default swaps, index futures and foreign currency forwards. See Note 4 for information regarding the fair value of derivative instruments.


December 31	2023						2022
	Contractual/Notional Amount		Estimated Fair Value				Contractual/Notional Amount		Estimated Fair Value
			Asset		(Liability)				Asset		(Liability)
(In millions)





Without hedge designation:

Equity markets:
Options - purchased	$	202	$	1
Futures - short	116						$	169
Warrants	84		3				117		$	6
Interest rate swaps	300		13				240		19
Currency forwards	13				$	(1)	12				$	(1)

As part of the overall investment strategy, investments are made in various assets which require future purchase, sale or funding commitments. These investments are recorded once funded, and the related commitments may include future capital calls from various third-party limited partnerships, signed and accepted mortgage loan applications and obligations related to private placement securities. As of December 31, 2023, commitments to purchase or fund were approximately $1.6 billion and to sell were approximately $35 million under the terms of these investments.