Investments

3 Months Ended

Mar. 31, 2025

Total investments at March 31, 2025 and December 31, 2024 were as follows:


	March 31, 2025						December 31, 2024
In millions	Current		Long-term		Total		Current		Long-term		Total
Debt securities available for sale	$	2,426	$	23,618	$	26,044	$	2,256	$	23,777	$	26,033
Mortgage loans	152		1,346		1,498		151		1,354		1,505
Other investments	—		3,942		3,942		—		3,803		3,803
Total investments	$	2,578	$	28,906	$	31,484	$	2,407	$	28,934	$	31,341

Debt Securities

Debt securities available for sale at March 31, 2025 and December 31, 2024 were as follows:


In millions	Amortized Cost (1)		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
March 31, 2025
Debt securities:
U.S. government securities	$	2,869	$	30	$	(19)	$	2,880
States, municipalities and political subdivisions	387		2		(13)		376
U.S. corporate securities	13,326		135		(334)		13,127
Foreign securities	2,603		34		(81)		2,556
Residential mortgage-backed securities	828		7		(41)		794
Commercial mortgage-backed securities	1,775		16		(50)		1,741
Other asset-backed securities	4,542		22		(9)		4,555
Redeemable preferred securities	15		—		—		15
Total debt securities (2)	$	26,345	$	246	$	(547)	$	26,044

December 31, 2024
Debt securities:
U.S. government securities	$	2,826	$	7	$	(38)	$	2,795
States, municipalities and political subdivisions	712		4		(18)		698
U.S. corporate securities	13,043		94		(412)		12,725
Foreign securities	2,608		27		(111)		2,524
Residential mortgage-backed securities	792		2		(54)		740
Commercial mortgage-backed securities	1,731		9		(67)		1,673
Other asset-backed securities	4,834		35		(7)		4,862
Redeemable preferred securities	16		—		—		16
Total debt securities (2)	$	26,562	$	178	$	(707)	$	26,033

_____________________________________________

(1)There was no allowance for expected credit losses recorded on available-for-sale debt securities at March 31, 2025 or December 31, 2024.

(2)Investment risks associated with the Company’s experience-rated products generally do not impact the Company’s consolidated operating results. At March 31, 2025, debt securities with a fair value of $517 million, gross unrealized capital gains of $6 million and gross unrealized capital losses of $22 million, and at December 31, 2024, debt securities with a fair value of $543 million, gross unrealized capital gains of $5 million and gross unrealized capital losses of $30 million were included in total debt securities, but support experience-rated products. Changes in net unrealized capital gains (losses) on these securities are not reflected in accumulated other comprehensive income (loss).

The amortized cost and fair value of debt securities at March 31, 2025 are shown below by contractual maturity. Actual maturities may differ from contractual maturities because securities may be restructured, called or prepaid, or the Company intends to sell a security prior to maturity.


In millions	Amortized Cost		Fair Value
Due to mature:
Less than one year	$	1,192	$	1,189
One year through five years	10,666		10,670
After five years through ten years	4,422		4,385
Greater than ten years	2,920		2,710
Residential mortgage-backed securities	828		794
Commercial mortgage-backed securities	1,775		1,741
Other asset-backed securities	4,542		4,555
Total	$	26,345	$	26,044

Summarized below are the debt securities the Company held at March 31, 2025 and December 31, 2024 that were in an unrealized capital loss position, aggregated by the length of time the investments have been in that position:


	Less than 12 months					Greater than 12 months					Total
In millions, except number of securities	Number of Securities	Fair Value		Unrealized Losses		Number of Securities	Fair Value		Unrealized Losses		Number of Securities	Fair Value		Unrealized Losses
March 31, 2025
Debt securities:
U.S. government securities	60	$	194	$	5	121	$	287	$	14	181	$	481	$	19
States, municipalities and political subdivisions	39	87		4		113	168		9		152	255		13
U.S. corporate securities	1,856	2,384		40		2,378	3,143		294		4,234	5,527		334
Foreign securities	419	577		11		550	770		70		969	1,347		81
Residential mortgage-backed securities	46	130		1		339	315		40		385	445		41
Commercial mortgage-backed securities	114	391		4		158	303		46		272	694		50
Other asset-backed securities	478	1,104		6		48	43		3		526	1,147		9
Redeemable preferred securities	—	—		—		4	6		—		4	6		—
Total debt securities	3,012	$	4,867	$	71	3,711	$	5,035	$	476	6,723	$	9,902	$	547

December 31, 2024
Debt securities:
U.S. government securities	266	$	1,053	$	18	155	$	394	$	20	421	$	1,447	$	38
States, municipalities and political subdivisions	100	181		3		137	201		15		237	382		18
U.S. corporate securities	3,119	4,144		64		2,602	3,395		348		5,721	7,539		412
Foreign securities	599	810		21		616	874		90		1,215	1,684		111
Residential mortgage-backed securities	89	267		5		361	342		49		450	609		54
Commercial mortgage-backed securities	186	628		11		237	464		56		423	1,092		67
Other asset-backed securities	139	414		5		62	58		2		201	472		7
Redeemable preferred securities	4	9		—		4	6		—		8	15		—
Total debt securities	4,502	$	7,506	$	127	4,174	$	5,734	$	580	8,676	$	13,240	$	707

The Company reviewed the securities in the table above and concluded that they are performing assets generating investment income to support the needs of the Company’s business. In performing this review, the Company considered factors such as the quality of the investment security based on research performed by the Company’s internal credit analysts and external rating agencies and the prospects of realizing the carrying value of the security based on the investment’s current prospects for recovery. Unrealized capital losses at March 31, 2025 were generally caused by interest rate increases and not by unfavorable changes in the credit quality associated with these securities. As of March 31, 2025, the Company did not intend to sell these securities, and did not believe it was more likely than not that it would be required to sell these securities prior to the anticipated recovery of their amortized cost basis.

The maturity dates for debt securities in an unrealized capital loss position at March 31, 2025 were as follows:


	Supporting experience-rated products				Supporting remaining products				Total
In millions	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Due to mature:
Less than one year	$	1	$	—	$	508	$	8	$	509	$	8
One year through five years	92		2		3,393		96		3,485		98
After five years through ten years	64		4		1,609		94		1,673		98
Greater than ten years	129		15		1,820		228		1,949		243
Residential mortgage-backed securities	5		—		440		41		445		41
Commercial mortgage-backed securities	6		1		688		49		694		50
Other asset-backed securities	7		—		1,140		9		1,147		9
Total	$	304	$	22	$	9,598	$	525	$	9,902	$	547

Mortgage Loans

The Company’s mortgage loans are collateralized by commercial real estate. During the three months ended March 31, 2025 and 2024, the Company had the following activity in its mortgage loan portfolio:


	Three Months Ended March 31,
In millions	2025		2024
New mortgage loans	$	33	$	59
Mortgage loans fully repaid	30		2
Mortgage loans foreclosed	—		—

The Company assesses mortgage loans on a regular basis for credit impairments, and assigns a credit quality indicator to each loan. The Company’s credit quality indicator is internally developed and categorizes each loan in its portfolio on a scale from 1 to 7. These indicators are based upon several factors, including current loan-to-value ratios, current and future property cash flow, property condition, market trends, creditworthiness of the borrower and deal structure.

•Category 1 - Represents loans of superior quality.

•Categories 2 to 4 - Represent loans where credit risk is minimal to acceptable; however, these loans may display some susceptibility to economic changes.

•Categories 5 and 6 - Represent loans where credit risk is not substantial, but these loans warrant management’s close attention.

•Category 7 - Represents loans where collections are potentially at risk; if necessary, an impairment is recorded.

Based on the Company’s assessments at March 31, 2025 and December 31, 2024, the amortized cost basis of the Company's mortgage loans within each credit quality indicator by year of origination was as follows:


	Amortized Cost Basis by Year of Origination
In millions, except credit quality indicator	2025		2024		2023		2022		2021		Prior		Total
March 31, 2025
1	$	—	$	—	$	—	$	—	$	—	$	7	$	7
2 to 4	32		314		289		294		201		291		1,421
5 and 6	—		—		—		30		13		27		70
7	—		—		—		—		—		—		—
Total	$	32	$	314	$	289	$	324	$	214	$	325	$	1,498

December 31, 2024
1			$	—	$	—	$	—	$	—	$	8	$	8
2 to 4			315		292		320		205		320		1,452
5 and 6			—		—		4		13		28		45
7			—		—		—		—		—		—
Total			$	315	$	292	$	324	$	218	$	356	$	1,505

Net Investment Income

Sources of net investment income for the three months ended March 31, 2025 and 2024 were as follows:


	Three Months Ended March 31,
In millions	2025		2024
Debt securities	$	323	$	244
Mortgage loans	21		17
Other investments	209		223
Gross investment income	553		484
Investment expenses	(12)		(12)
Net investment income (excluding net realized losses)	541		472
Net realized capital losses	(21)		(18)
Net investment income	$	520	$	454

Excluding amounts related to experience-rated products, proceeds from the sale of available-for-sale debt securities and the related gross realized capital gains and losses for the three months ended March 31, 2025 and 2024 were as follows:


	Three Months Ended March 31,
In millions	2025		2024
Proceeds from sales	$	2,185	$	1,265
Gross realized capital gains	12		8
Gross realized capital losses	39		52