
Year Ended December 31	2025		2024		2023
(In millions)

Fixed maturity securities	$	2,140	$	2,050	$	1,941
Limited partnership investments	278		271		177
Short-term investments	76		90		78
Equity securities (a)	60		82		63
Income from trading portfolio (a)	209		255		125
Other	118		129		105
Total investment income	2,881		2,877		2,489
Investment expenses	(102)		(97)		(94)
Net investment income	$	2,779	$	2,780	$	2,395
(a) Net investment income recognized due to the change in fair value of equity and trading portfolio securities held as of December 31, 2025, 2024 and 2023	$	63	$	93	$	38


Year Ended December 31	2025		2024		2023
(In millions)

Fixed maturity securities:
Gross gains	$	42	$	48	$	75
Gross losses	(125)		(150)		(166)
Investment losses on fixed maturity securities	(83)		(102)		(91)
Equity securities (a)	7		21		4
Derivative instruments					(1)
Short-term investments and other	(5)				(11)
Gain on acquisition of a joint venture (see Note 2)					46


Investment losses	$	(81)	$	(81)	$	(53)
(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, 2025, 2024 and 2023	$	7	$	19	$	14

The available-for-sale impairment losses (gains) recognized in earnings by asset type are presented in the following table. 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:


December 31, 2025	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	$	25,484	$	682	$	881	$	28	$	25,257
States, municipalities and political subdivisions	8,870		303		742				8,431
Asset-backed:
Residential mortgage-backed	4,011		50		366				3,695
Commercial mortgage-backed	1,515		18		80		21		1,432
Other asset-backed	3,729		28		194		20		3,543
Total asset-backed	9,255		96		640		41		8,670
U.S. Treasury and obligations of government sponsored enterprises	236		1		3				234
Foreign government	764		7		20				751
Redeemable preferred stock	8								8
Fixed maturities available-for-sale	$	44,617	$	1,089	$	2,286	$	69	$	43,351
Fixed maturities trading	633								633
Total fixed maturity securities	$	45,250	$	1,089	$	2,286	$	69	$	43,984


December 31, 2024

Fixed maturity securities:
Corporate and other bonds	$	25,839	$	423	$	1,305	$	13	$	24,944
States, municipalities and political subdivisions	7,396		243		835				6,804
Asset-backed:
Residential mortgage-backed	3,725		7		488				3,244
Commercial mortgage-backed	1,779		11		141		18		1,631
Other asset-backed	3,770		24		239		14		3,541
Total asset-backed	9,274		42		868		32		8,416
U.S. Treasury and obligations of government sponsored enterprises	220		1		1				220
Foreign government	701		6		30				677

Fixed maturities available-for-sale	$	43,430	$	715	$	3,039	$	45	$	41,061
Fixed maturities trading	766								766
Total fixed maturity securities	$	44,196	$	715	$	3,039	$	45	$	41,827


	Less than 12 Months				12 Months or Longer				Total
December 31, 2025	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	$	2,776	$	56	$	8,576	$	825	$	11,352	$	881
States, municipalities and political subdivisions	403		8		3,471		734		3,874		742
Asset-backed:
Residential mortgage-backed	154		1		2,002		365		2,156		366
Commercial mortgage-backed	36		2		887		78		923		80
Other asset-backed	420		9		1,432		185		1,852		194
Total asset-backed	610		12		4,321		628		4,931		640
U.S. Treasury and obligations of government-sponsored enterprises	78		2		18		1		96		3
Foreign government	131		1		260		19		391		20
Total fixed maturity securities	$	3,998	$	79	$	16,646	$	2,207	$	20,644	$	2,286

December 31, 2024

Fixed maturity securities:
Corporate and other bonds	$	5,846	$	165	$	10,388	$	1,140	$	16,234	$	1,305
States, municipalities and political subdivisions	1,247		52		2,967		783		4,214		835
Asset-backed:
Residential mortgage-backed	849		22		2,010		466		2,859		488
Commercial mortgage-backed	180		2		988		139		1,168		141
Other asset-backed	680		21		1,557		218		2,237		239
Total asset-backed	1,709		45		4,555		823		6,264		868
U.S. Treasury and obligations of government-sponsored enterprises	49		1		41				90		1
Foreign government	118		3		368		27		486		30
Total fixed maturity securities	$	8,969	$	266	$	18,319	$	2,773	$	27,288	$	3,039


	December 31, 2025				December 31, 2024
	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
(In millions)

U.S. Government, Government agencies and Government-sponsored enterprises	$	1,980	$	267	$	2,567	$	373
AAA	1,376		243		1,800		282
AA	3,827		623		4,247		730
A	5,025		440		6,330		582
BBB	7,758		639		11,548		980
Non-investment grade	678		74		796		92
Total	$	20,644	$	2,286	$	27,288	$	3,039

Based on current facts and circumstances, the unrealized losses presented in the December 31, 2025 securities in the gross unrealized loss position table above are not indicative of the ultimate collectability 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, 2025.

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 $470 million and $442 million as of December 31, 2025 and 2024 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, 2025	Corporate and Other Bonds		Asset-backed		Total
(In millions)

Allowance for credit losses:
Balance as of January 1, 2025	$	13	$	32	$	45
Additions to the allowance for credit losses:
Securities for which credit losses were not previously recorded	3		3		6
Available-for-sale securities accounted for as PCD assets	4				4

Reductions to the allowance for credit losses:
Securities disposed during the period (realized)	6				6



Additional increases to the allowance for credit losses on securities that had an allowance recorded in a previous period	14		6		20
Total allowance for credit losses	$	28	$	41	$	69


Year Ended December 31, 2024	Corporate and Other Bonds		Asset-backed		Total
(In millions)

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	9		18		27
Available-for-sale securities accounted for as PCD assets	4				4

Reductions to the allowance for credit losses:
Securities disposed 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

Additional increases to the allowance for credit losses on securities that had an allowance recorded in a previous period			12		12
Total allowance for credit losses	$	13	$	32	$	45


December 31	2025				2024
	Cost or Amortized Cost		Estimated Fair Value		Cost or Amortized Cost		Estimated Fair Value
(In millions)

Due in one year or less	$	1,392	$	1,389	$	1,761	$	1,753
Due after one year through five years	11,318		11,214		11,678		11,403
Due after five years through ten years	13,440		13,187		13,083		12,365
Due after ten years	18,467		17,561		16,908		15,540
Total	$	44,617	$	43,351	$	43,430	$	41,061

The carrying value of limited partnership investments as of December 31, 2025 and 2024 was approximately $2.9 billion and $2.5 billion, which includes net undistributed earnings of $381 million and $334 million. Limited partnerships comprising 11% of the total carrying value are reported on a current basis through December 31, 2025 with no reporting lag, 2% 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 88% and 86% of the carrying value at December 31, 2025 and 2024 were invested in private debt and equity. Limited partnerships comprising 12% and 14% of the carrying value as of December 31, 2025 and 2024 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 $698 million and $648 million as of December 31, 2025 and 2024. 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, 2025 and 2024, and the related income reflected on the Consolidated Statements of Operations represents approximately 1% of the changes in aggregate partnership equity for each of the years ended December 31, 2025, 2024 and 2023.

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, 2025	2025		2024		2023		2022		2021		Prior		Total
(In millions)

DSCR ≥1.6x
LTV less than 55%	$	38			$	33			$	5	$	215	$	291
LTV 55% to 65%	37				12		$	14	6		12		81
LTV greater than 65%							12		13				25
DSCR 1.2x - 1.6x
LTV less than 55%			$	68	28		5		2		75		178
LTV 55% to 65%	107		33		38		21		19		28		246
LTV greater than 65%	7						46						53
DSCR ≤1.2x
LTV less than 55%					6						21		27
LTV 55% to 65%	37				17		38				15		107
LTV greater than 65%							40		21		25		86
Total	$	226	$	101	$	134	$	176	$	66	$	391	$	1,094
Write-offs for the year ended December 31, 2025							(2)				(23)		(25)

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	2025					2024
	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	$	98	$	1		$	268	$	2
Futures - short	249		2			167		1
Warrants	1		2			1		1
Interest rate swaps	473					300		4

Credit default swap index - purchased						2,000

In the fourth quarter of 2024, the Company entered into credit default swap index transactions that would potentially benefit from widening investment grade credit spreads associated with the underlying securities that comprised the index. The position was closed during the second quarter of 2025. As of December 31, 2024, the notional value of the credit default swap index was $2 billion and the fair value was less than $1 million, which was recognized in Payable to brokers in the Consolidated Balance Sheets. The fair value of the position was measured using observable market inputs, including credit spreads. For the years ended December 31, 2025 and 2024, Net investment income related to the position was $19 million and less than $1 million.

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, 2025, commitments to purchase or fund were approximately $1.8 billion and to sell were approximately $45 million under the terms of these investments.