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Investments (Tables)
 9 Months Ended
Sep. 30, 2024
Investments [Abstract]  
Schedule of Portfolio Composition
Portfolio composition
($ in millions)September 30, 2024December 31, 2023
Fixed income securities, at fair value$53,961 $48,865 
Equity securities, at fair value2,091 2,411 
Mortgage loans, net765 822 
Limited partnership interests 8,925 8,380 
Short-term investments, at fair value6,994 5,144 
Other investments, net866 1,055 
Total$73,602 $66,677 
Schedule of Amortized Cost, Gross Unrealized Gains (Losses) and Fair Value for Fixed Income Securities
Amortized cost, gross unrealized gains (losses) and fair value for fixed income securities
($ in millions)Amortized cost, netGross unrealized
Fair
value
GainsLosses
September 30, 2024    
U.S. government and agencies$9,125 $162 $(41)$9,246 
Municipal8,223 131 (96)8,258 
Corporate33,480 799 (483)33,796 
Foreign government1,446 37 (6)1,477 
ABS1,173 14 (3)1,184 
Total fixed income securities$53,447 $1,143 $(629)$53,961 
December 31, 2023    
U.S. government and agencies$8,624 $114 $(119)$8,619 
Municipal6,049 109 (152)6,006 
Corporate31,951 397 (1,143)31,205 
Foreign government1,286 17 (13)1,290 
ABS1,739 13 (7)1,745 
Total fixed income securities$49,649 $650 $(1,434)$48,865 
Schedule of Maturities for Fixed Income Securities
Scheduled maturities for fixed income securities
($ in millions)September 30, 2024December 31, 2023
Amortized cost, net
Fair
value
Amortized cost, net
Fair
value
Due in one year or less$2,663 $2,641 $3,422 $3,374 
Due after one year through five years22,966 22,968 23,218 22,614 
Due after five years through ten years17,073 17,351 12,553 12,273 
Due after ten years9,572 9,817 8,717 8,859 
 52,274 52,777 47,910 47,120 
ABS1,173 1,184 1,739 1,745 
Total$53,447 $53,961 $49,649 $48,865 
Schedule of Net Investment Income
Net investment income
($ in millions)Three months ended September 30,Nine months ended September 30,
2024202320242023
Fixed income securities$587 $457 $1,684 $1,269 
Equity securities17 15 50 47 
Mortgage loans9 9 27 25 
Limited partnership interests138 190 440 446 
Short-term investments87 59 216 194 
Other investments25 41 71 121 
Investment income, before expense863 771 2,488 2,102 
Investment expense(80)(82)(229)(228)
Net investment income
$783 $689 $2,259 $1,874 
Schedule of Net Gains (Losses) on Investments and Derivatives by Asset Type
Net gains (losses) on investments and derivatives by asset type
($ in millions)Three months ended September 30,Nine months ended September 30,
2024202320242023
Fixed income securities$105 $(129)$(92)$(397)
Equity securities119 (35)195 153 
Mortgage loans(1)(1)— (4)
Limited partnership interests(8)(6)(13)1 
Derivatives20 31 (3)(28)
Other investments8 54 12 52 
Other (1)
— — (123)— 
Net gains (losses) on investments and derivatives$243 $(86)$(24)$(223)
(1)Related to the loss for the carrying value of the surplus notes issued by Adirondack Insurance Exchange and New Jersey Skylands Insurance Association (together “Reciprocal Exchanges”). See Note 8 for further detail.
Schedule of Net Gains (Losses) on Investments and Derivatives by Transaction Type
Net gains (losses) on investments and derivatives by transaction type
($ in millions)
Three months ended September 30,Nine months ended September 30,
2024202320242023
Sales$116 $(63)$(85)$(313)
Credit losses(12)(20)(143)(69)
Valuation change of equity investments (1)
119 (34)207 187 
Valuation change and settlements of derivatives20 31 (3)(28)
Net gains (losses) on investments and derivatives$243 $(86)$(24)$(223)
(1)Includes valuation change of equity securities and certain limited partnership interests where the underlying assets are predominately public equity securities.
Schedule of Gross Realized Gains (Losses) on Sales of Fixed Income Securities
Gross realized gains (losses) on sales of fixed income securities
($ in millions)Three months ended September 30,Nine months ended September 30,
2024202320242023
Gross realized gains$201 $11 $275 $85 
Gross realized losses (93)(133)(363)(459)
Schedule of Net Appreciation (Decline) Recognized in Net Income
Net appreciation (decline) recognized in net income for assets that are still held
($ in millions)Three months ended September 30,Nine months ended September 30,
2024202320242023
Equity securities$107 $(32)$170 $31 
Limited partnership interests carried at fair value
18 19 65 67 
Total$125 $(13)$235 $98 
Schedule of Credit Losses Recognized in Net Income
Credit losses recognized in net income
($ in millions)Three months ended September 30,Nine months ended September 30,
2024202320242023
Assets
Fixed income securities:    
Municipal$(2)$— $(2)$— 
Corporate(1)(7)(2)(23)
Total fixed income securities(3)(7)(4)(23)
Mortgage loans(1)(1)— (4)
Limited partnership interests(8)(9)(24)(25)
Other investments
Bank loans— (2)5 (16)
Real estate
— — 2 — 
Other assets
— — (123)— 
Total credit losses by asset type$(12)$(19)$(144)$(68)
Liabilities
Commitments to fund commercial mortgage loans and bank loans— (1)1 (1)
Total $(12)$(20)$(143)$(69)
Schedule of Unrealized Net Capital Gains and Losses Included in AOCI
Unrealized net capital gains and losses included in accumulated other comprehensive income (“AOCI”)
($ in millions)
Fair
value
Gross unrealized
Unrealized net
gains (losses)
September 30, 2024GainsLosses
Fixed income securities$53,961 $1,143 $(629)$514 
Short-term investments6,994 — (1)(1)
Derivative instruments— — (2)(2)
Limited partnership interests
   — 
Investments classified as held for sale(50)
Unrealized net capital gains and losses, pre-tax   461 
Reclassification of noncontrolling interest   5 
Deferred income taxes   (105)
Unrealized net capital gains and losses, after-tax   $361 
December 31, 2023
Fixed income securities$48,865 $650 $(1,434)$(784)
Short-term investments5,144 — (1)(1)
Derivative instruments — — (2)(2)
Limited partnership interests (1)
 
 
 
(4)
Unrealized net capital gains and losses, pre-tax   (791)
Reclassification of noncontrolling interest   13 
Deferred income taxes   174 
Unrealized net capital gains and losses, after-tax   $(604)
(1)Unrealized net capital gains and losses for limited partnership interests represent the Company’s share of the equity method of accounting (“EMA”) limited partnerships’ OCI. Fair value and gross unrealized gains and losses are not applicable.
Schedule of Change in Unrealized Net Capital Gains (Losses)
Change in unrealized net capital gains (losses)
($ in millions)Nine months ended September 30, 2024
Fixed income securities$1,298 
Short-term investments— 
Derivative instruments— 
Limited partnership interests4 
Investments classified as held for sale
(50)
Total1,252 
Reclassification of noncontrolling interest(8)
Deferred income taxes(279)
Change in unrealized net capital gains and losses, after-tax
$965 
Schedule of Carrying Value for Limited Partnership Interests
Carrying value for limited partnership interests
($ in millions)September 30, 2024December 31, 2023
Private equity$7,531 $7,154 
Real estate1,246 1,085 
Other (1)
148 141 
Total$8,925 $8,380 
(1)Other consists of certain limited partnership interests where the underlying assets are predominately public equity and debt securities.
Schedule of Other investments by Asset Type
Other investments by asset type
($ in millions)September 30, 2024December 31, 2023
Bank loans, net$187 $224 
Real estate677 709 
Policy loans— 119 
Other2 3 
Total$866 $1,055 
Schedule of Rollforward of Credit Loss Allowance for Fixed Income Securities, Mortgage Loans and Bank Loans
Rollforward of credit loss allowance for fixed income securities
Three months ended September 30,Nine months ended September 30,
($ in millions)2024202320242023
Beginning balance$(19)$(29)$(36)$(13)
Credit losses on securities for which credit losses not previously reported(3)(8)(10)(12)
Net (increases) decreases related to credit losses previously reported— 1 3 (11)
(Increase) decrease of allowance related to sales and other
— (1)3 (1)
Write-offs— — 18 — 
Ending balance$(22)$(37)$(22)$(37)
Components of credit loss allowance as of September 30
Municipal bonds
$(2)$— 
Corporate bonds(18)(34)
ABS(2)(3)
Total$(22)$(37)
Rollforward of credit loss allowance for mortgage loans
Three months ended September 30,Nine months ended September 30,
($ in millions)2024202320242023
Beginning balance$(10)$(10)$(11)$(7)
Net increases related to credit losses(1)(1)— (4)
Write-offs— — — — 
Ending balance
$(11)$(11)$(11)$(11)
Rollforward of credit loss allowance for bank loans
($ in millions)Three months ended September 30,Nine months ended September 30,
2024202320242023
Beginning balance$(11)$(62)$(22)$(57)
Net (increases) decreases related to credit losses— (2)5 (16)
Reduction of allowance related to sales— 28 — 34 
Write-offs— — 6 3 
Ending balance
$(11)$(36)$(11)$(36)
Schedule of Gross Unrealized Losses and Fair Value by Type and Length of Time Held in a Continuous Unrealized Loss Position
Gross unrealized losses and fair value by type and length of time held in a continuous unrealized loss position (1)
($ in millions)Less than 12 months12 months or more
Total
unrealized
losses
Number
of 
issues
Fair
value
Unrealized
losses
Number
of 
issues
Fair
value
Unrealized
losses
September 30, 2024       
Fixed income securities       
U.S. government and agencies33 $1,299 $(11)69 $914 $(30)$(41)
Municipal119 352 (1)1,214 1,817 (95)(96)
Corporate149 1,288 (18)1,249 10,608 (465)(483)
Foreign government1 10 — 56 139 (6)(6)
ABS19 82 — 85 44 (3)(3)
Total fixed income securities321 $3,031 $(30)2,673 $13,522 $(599)$(629)
Investment grade fixed income securities280 $2,755 $(25)2,459 $11,984 $(533)$(558)
Below investment grade fixed income securities41 276 (5)214 1,538 (66)(71)
Total fixed income securities321 $3,031 $(30)2,673 $13,522 $(599)$(629)
December 31, 2023       
Fixed income securities       
U.S. government and agencies63 $2,554 $(38)117 $2,513 $(81)$(119)
Municipal271 400 (4)1,784 2,245 (148)(152)
Corporate251 2,225 (48)2,106 17,319 (1,095)(1,143)
Foreign government7 31 — 75 356 (13)(13)
ABS19 64 (1)150 584 (6)(7)
Total fixed income securities611 $5,274 $(91)4,232 $23,017 $(1,343)$(1,434)
Investment grade fixed income securities568 $5,061 $(83)3,864 $20,429 $(1,151)$(1,234)
Below investment grade fixed income securities43 213 (8)368 2,588 (192)(200)
Total fixed income securities611 $5,274 $(91)4,232 $23,017 $(1,343)$(1,434)
(1)Includes fixed income securities with fair values of $19 million and $32 million and unrealized losses of $7 million and $3 million with credit loss allowances of $3 million and $8 million as of September 30, 2024 and December 31, 2023, respectively.
Schedule of Gross Unrealized Losses by Unrealized Loss Position and Credit Quality
Gross unrealized losses by unrealized loss position and credit quality as of September 30, 2024
($ in millions)
Investment
grade
Below investment gradeTotal
Fixed income securities with unrealized loss position less than 20% of amortized cost, net (1)
$(546)$(64)$(610)
Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost, net (2)
(12)(7)(19)
Total unrealized losses$(558)$(71)$(629)
(1)Related to securities with an unrealized loss position less than 20% of amortized cost, net, the degree of which suggests that these securities do not pose a high risk of having credit losses.
(2)Evaluated based on factors such as discounted cash flows and the financial condition and near-term and long-term prospects of the issue or issuer and were determined to have adequate resources to fulfill contractual obligations.
Schedule of Mortgage Loans Amortized Cost by Debt Service Coverage Ratio Distribution and Year of Origination
Mortgage loans amortized cost by debt service coverage ratio distribution and year of origination
September 30, 2024December 31, 2023
($ in millions)2019 and prior20202021202220232024TotalTotal
Below 1.0$— $— $— $— $— $— $— $13 
1.0 - 1.2560 — — 18 27 — 105 41 
1.26 - 1.5048 10 — 30 41 — 129 133 
Above 1.50185 41 183 42 76 15 542 646 
Amortized cost before allowance$293 $51 $183 $90 $144 $15 $776 $833 
Allowance(11)(11)
Amortized cost, net$765 $822 
Schedule of Bank Loans Amortized Cost by Credit Rating and Year of Origination
Bank loans amortized cost by credit rating and year of origination
September 30, 2024December 31, 2023
($ in millions)2019 and prior20202021202220232024TotalTotal
NAIC 1 / A
$— $— $— $— $— $10 $10 $— 
NAIC 2 / BBB — — — — — 37 37 9 
NAIC 3 / BB— — 2 — 2 15 19 38 
NAIC 4 / B25 1 4 2 38 49 119 153 
NAIC 5-6 / CCC and below— — — — 10 3 13 46 
Amortized cost before allowance$25 $1 $6 $2 $50 $114 $198 $246 
Allowance(11)(22)
Amortized cost, net$187 $224