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INVESTMENTS (Tables)

3 Months Ended

Mar. 31, 2024

Investments, Debt and Equity Securities [Abstract]

Schedule of Amortized Cost, Allowance for Credit Losses, Gross Unrealized Appreciation/(Depreciation) and Fair Value of Fixed Maturity Securities

The tables below present the amortized cost, allowance for credit losses, gross unrealized appreciation/(depreciation) (“URA(D)”) and fair value of fixed maturity securities - available for sale for the periods indicated:


	At March 31, 2024
(Dollars in millions)	Amortized Cost		Allowance for Credit Losses		Unrealized Appreciation		Unrealized Depreciation		Fair Value
Fixed maturity securities - available for sale
U.S. Treasury securities and obligations of
U.S. government agencies and corporations	$	1,042	$	—	$	3	$	(52)	993
Obligations of U.S. states and political subdivisions	125		—		1		(10)		115
Corporate Securities	8,192		(45)		94		(329)		7,912
Asset-backed Securities	5,310		—		27		(33)		5,305
Mortgage-backed securities
Commercial	1,064		—		1		(84)		981
Agency Residential	4,835		—		30		(280)		4,585
Non-agency Residential	668		—		8		(4)		672
Foreign government securities	2,240		—		16		(131)		2,124
Foreign corporate securities	5,835		—		60		(285)		5,609
Total fixed maturity securities - available for sale	$	29,311	$	(46)	$	240	$	(1,209)	$	28,297

(Some amounts may not reconcile due to rounding.)


	At December 31, 2023
(Dollars in millions)	Amortized Cost		Allowance for Credit Losses		Unrealized Appreciation		Unrealized Depreciation		Fair Value
Fixed maturity securities - available for sale
U.S. Treasury securities and obligations of
U.S. government agencies and corporations	$	1,045	$	—	$	3	$	(52)	$	996
Obligations of U.S. states and political subdivisions	138		—		1		(11)		128
Corporate securities	7,587		(47)		135		(322)		7,353
Asset-backed securities	5,644		—		25		(51)		5,618
Mortgage-backed securities
Commercial	1,091		—		1		(92)		1,000
Agency residential	4,869		—		55		(229)		4,695
Non-agency residential	431		—		14		(2)		443
Foreign government securities	2,042		—		33		(108)		1,967
Foreign corporate securities	5,720		(1)		92		(271)		5,540
Total fixed maturity securities - available for sale	$	28,568	$	(48)	$	358	$	(1,137)	$	27,740

(Some amounts may not reconcile due to rounding.)

The following tables show amortized cost, allowance for credit losses, gross URA(D) and fair value of fixed maturity securities - held to maturity for the periods indicated:


	At March 31, 2024
(Dollars in millions)	Amortized Cost		Allowance for Credit Losses		Unrealized Appreciation		Unrealized Depreciation		Fair Value
Fixed maturity securities - held to maturity
Corporate Securities	$	175	$	(2)	$	5	$	(4)	$	173
Asset-backed Securities	569		(5)		4		(9)		559
Mortgage-backed securities
Commercial	21		—		—		—		21
Foreign corporate securities	84		(1)		6		—		89
Total fixed maturity securities - held to maturity	$	849	(9)		$	15	$	(13)	$	842

(Some amounts may not reconcile due to rounding.)


	At December 31, 2023
(Dollars in millions)	Amortized Cost		Allowance for Credit Losses		Unrealized Appreciation		Unrealized Depreciation		Fair Value
Fixed maturity securities - held to maturity
Corporate Securities	$	150	$	(2)	$	1	$	(3)	$	146
Asset-backed Securities	609		(5)		4		(10)		597
Mortgage-backed securities
Commercial	21		—		—		—		21
Foreign corporate securities	84		(1)		7		—		90
Total fixed maturity securities - held to maturity	$	864	$	(8)	$	12	$	(13)	$	854

(Some amounts may not reconcile due to rounding.)

Schedule of Amortized Cost and Fair Value of Fixed Maturity Securities, by Contractual Maturity

The amortized cost and fair value of fixed maturity securities - available for sale are shown in the following table by contractual maturity. As the stated maturity of such securities may not be indicative of actual maturities, the totals for mortgage-backed and asset-backed securities are shown separately.


	At March 31, 2024				At December 31, 2023
(Dollars in millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Fixed maturity securities – available for sale
Due in one year or less	$	1,487	$	1,454	$	1,289	$	1,261
Due after one year through five years	7,144		6,858		7,094		6,858
Due after five years through ten years	6,235		5,959		5,613		5,405
Due after ten years	2,569		2,483		2,537		2,460
Asset-backed securities	5,310		5,305		5,644		5,618
Mortgage-backed securities
Commercial	1,064		981		1,091		1,000
Agency residential	4,835		4,585		4,869		4,695
Non-agency residential	668		672		431		443
Total fixed maturity securities - available for sale	$	29,311	$	28,297	$	28,568	$	27,740

(Some amounts may not reconcile due to rounding.)

The amortized cost and fair value of fixed maturity securities - held to maturity are shown in the following table by contractual maturity. As the stated maturity of such securities may not be indicative of actual maturities, the totals for mortgage-backed and asset-backed securities are shown separately.


	At March 31, 2024				At December 31, 2023
(Dollars in millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Fixed maturity securities – held to maturity
Due in one year or less	$	10	$	10	$	5	$	5
Due after one year through five years	54		54		59		58
Due after five years through ten years	43		41		43		42
Due after ten years	152		157		127		131
Asset-backed securities	569		559		609		597
Mortgage-backed securities
Commercial	21		21		21		21
Total fixed maturity securities - held to maturity	$	849	$	842	$	864	$	854

(Some amounts may not reconcile due to rounding.)

Schedule of Changes in Net Unrealized Appreciation (Depreciation) for the Company's Investments

The changes in net URA(D) for the Company’s investments are as follows:


	Three Months Ended March 31,
(Dollars in millions)		2024		2023
Increase (decrease) during the period between the fair value and cost of
investments carried at fair value, and deferred taxes thereon:
Fixed maturity securities - available for sale and short-term investments		$	(186)	$	279
Change in URA(D), pre-tax		(186)		$	279
Deferred tax benefit (expense)		33		$	(30)
Change in URA(D), net of deferred taxes, included in shareholders’ equity		$	(153)	$	249

(Some amounts may not reconcile due to rounding.)

Schedule of Aggregate Fair Value and Gross Unrealized Depreciation of Fixed Maturity Securities by Security Type

The tables below display the aggregate fair value and gross unrealized depreciation of fixed maturity securities - available for sale by security type and contractual maturity, in each case subdivided according to length of time that individual securities had been in a continuous unrealized loss position for the periods indicated:


	Duration of Unrealized Loss at March 31, 2024 By Security Type
	Less than 12 months				Greater than 12 months				Total
(Dollars in millions)	Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation
Fixed maturity securities - available for sale
U.S. Treasury securities and obligations of
U.S. government agencies and corporations	$	159	$	(3)	$	749	$	(49)	$	908	$	(52)
Obligations of U.S. states and political subdivisions	8		—		63		(9)		71		(10)
Corporate securities	1,767		(47)		2,911		(282)		4,678		(329)
Asset-backed securities	399		(3)		943		(30)		1,342		(33)
Mortgage-backed securities
Commercial	167		(17)		722		(66)		890		(84)
Agency residential	1,143		(18)		2,101		(262)		3,244		(280)
Non-agency residential	211		(4)		5		—		215		(4)
Foreign government securities	494		(14)		994		(117)		1,488		(131)
Foreign corporate securities	885		(9)		2,653		(276)		3,537		(285)
Total	$	5,233	$	(115)	$	11,141	$	(1,092)	$	16,374	$	(1,208)
Securities where an allowance for credit loss was recorded	33		(1)		2		—		35		(1)
Total fixed maturity securities - available for sale	$	5,267	$	(116)	$	11,143	$	(1,092)	$	16,409	$	(1,209)

(Some amounts may not reconcile due to rounding.)


	Duration of Unrealized Loss at December 31, 2023 By Security Type
	Less than 12 months				Greater than 12 months				Total
(Dollars in millions)	Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation
Fixed maturity securities - available for sale
U.S. Treasury securities and obligations of
U.S. government agencies and corporations	$	122	$	(3)	$	772	$	(49)	$	893	$	(52)
Obligations of U.S. states and political subdivisions	3		—		74		(11)		77		(11)
Corporate securities	1,019		(58)		2,780		(263)		3,799		(321)
Asset-backed securities	196		(2)		2,014		(49)		2,210		(51)
Mortgage-backed securities
Commercial	181		(19)		742		(73)		923		(92)
Agency residential	423		(4)		2,126		(225)		2,549		(229)
Non-agency residential	126		(1)		4		—		130		—
Foreign government securities	172		(7)		985		(101)		1,156		(108)
Foreign corporate securities	324		(6)		2,726		(265)		3,050		(271)
Total	$	2,564	$	(101)	$	12,222	$	(1,035)	$	14,787	$	(1,136)
Securities where an allowance for credit loss was recorded	2		(1)		—		—		2		(1)
Total fixed maturity securities - available for sale	$	2,566	$	(102)	$	12,222	$	(1,035)	$	14,789	$	(1,137)

(Some amounts may not reconcile due to rounding.)

Schedule of Aggregate Fair Value and Gross Unrealized Depreciation of Fixed Maturity Securities by Contractual Maturity


	Duration of Unrealized Loss at March 31, 2024 By Maturity
	Less than 12 months				Greater than 12 months				Total
(Dollars in millions)	Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation
Fixed maturity securities - available for sale
Due in one year or less	$	214	$	(3)	$	876	$	(36)	$	1,090	$	(39)
Due in one year through five years	1,135		(18)		3,822		(299)		4,958		(317)
Due in five years through ten years	1,282		(25)		2,234		(325)		3,516		(350)
Due after ten years	682		(26)		438		(74)		1,119		(100)
Asset-backed securities	399		(3)		943		(30)		1,342		(33)
Mortgage-backed securities	1,521		(40)		2,828		(328)		4,349		(368)
Total	$	5,233	$	(115)	$	11,141	$	(1,092)	$	16,374	$	(1,208)
Securities where an allowance for credit loss was recorded	33		(1)		2		—		35		(1)
Total fixed maturity securities - available for sale	$	5,267	$	(116)	$	11,143	$	(1,092)	$	16,409	$	(1,209)

(Some amounts may not reconcile due to rounding.)


	Duration of Unrealized Loss at December 31, 2023 By Maturity
	Less than 12 months				Greater than 12 months				Total
(Dollars in millions)	Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation
Fixed maturity securities - available for sale
Due in one year or less	$	184	$	(3)	$	773	$	(30)	$	958	$	(33)
Due in one year through five years	699		(18)		3,841		(271)		4,540		(289)
Due in five years through ten years	328		(15)		2,306		(310)		2,633		(325)
Due after ten years	429		(39)		417		(77)		845		(116)
Asset-backed securities	196		(2)		2,014		(49)		2,210		(51)
Mortgage-backed securities	729		(24)		2,872		(298)		3,601		(323)
Total	$	2,564	$	(101)	$	12,222	$	(1,035)	$	14,787	$	(1,136)
Securities where an allowance for credit loss was recorded	2		(1)		—		—		2		(1)
Total fixed maturity securities - available for sale	$	2,566	$	(102)	$	12,222	$	(1,035)	$	14,789	$	(1,137)

(Some amounts may not reconcile due to rounding.)

Schedule of Components of Net Investment Income

The components of net investment income are presented in the table below for the periods indicated:


	Three Months Ended March 31,
(Dollars in millions)		2024		2023
Fixed maturities		$	352	$	247
Equity securities		1		1
Short-term investments and cash		38		17
Other invested assets
Limited partnerships		54		(15)
Other		20		22
Gross investment income before adjustments		465		272
Funds held interest income (expense)		6		—
Future policy benefit reserve income (expense)		—		—
Gross investment income		470		272
Investment expenses		13		12
Net investment income		$	457	$	260

(Some amounts may not reconcile due to rounding.)

Schedule of Components of Net Realized Capital Gains (Losses)

The components of net gains (losses) on investments are presented in the table below for the periods indicated:


	Three Months Ended March 31,
(Dollars in millions)		2024		2023
Fixed maturity securities
Allowance for credit losses		$	2	$	(8)
Net realized gains (losses) from dispositions		(7)		2
Equity securities, fair value
Net realized gains (losses) from dispositions		1		7
Gains (losses) from fair value adjustments		(2)		4
Other invested assets		—		—
Short-term investments gain (loss)		—		—
Total net gains (losses) on investments		$	(7)	$	5

(Some amounts may not reconcile due to rounding.)

Schedule of Roll Forward of Allowance for Credit Losses of Fixed Maturities, Available for Sale

The following tables provide a roll forward of the Company’s beginning and ending balance of allowance for credit losses for the periods indicated:


		Roll Forward of Allowance for Credit Losses - Fixed Maturities - Available for Sale
	Three Months Ended March 31, 2024
(Dollars in millions)		Corporate Securities		Foreign Corporate Securities		Total
Beginning balance		$	(47)	$	(1)	$	(48)
Credit losses on securities where credit
losses were not previously recorded		—		—		—
Increases in allowance on previously
impaired securities		—		—		—
Decreases in allowance on previously
impaired securities		—		—		—
Reduction in allowance due to disposals		2		1		3
Balance, end of period		$	(45)	$	—	$	(46)

(Some amounts may not reconcile due to rounding.)


		Roll Forward of Allowance for Credit Losses - Fixed Maturities - Available for Sale
	Three Months Ended March 31, 2023
(Dollars in millions)		Corporate Securities		Foreign Corporate Securities		Total
Beginning balance		$	(45)	$	(10)	$	(54)
Credit losses on securities where credit
losses were not previously recorded		(12)		—		(12)
Increases in allowance on previously
impaired securities		—		—		—
Decreases in allowance on previously
impaired securities		—		—		—
Reduction in allowance due to disposals		2		3		5
Balance, end of period		$	(55)	$	(7)	$	(62)

(Some amounts may not reconcile due to rounding.)

Schedule of Roll Forward of Allowance for Credit Losses of Fixed Maturities, Held to Maturity


		Roll Forward of Allowance for Credit Losses - Fixed Maturities - Held to Maturity
	Three Months Ended March 31, 2024
(Dollars in millions)		Corporate Securities		Asset-Backed Securities		Foreign Corporate Securities		Total
Beginning balance		$	(2)	$	(5)	$	(1)	$	(8)
Credit losses on securities where credit
losses were not previously recorded		—		—		(1)		(1)
Increases in allowance on previously
impaired securities		—		—		—		—
Decreases in allowance on previously
impaired securities		—		—		—		—
Reduction in allowance due to disposals		—		—		—		—
Balance, end of period		$	(2)	$	(5)	$	(1)	$	(9)

(Some amounts may not reconcile due to rounding.)


		Roll Forward of Allowance for Credit Losses - Fixed Maturities - Held to Maturity
	Three Months Ended March 31, 2023
(Dollars in millions)		Corporate Securities		Asset-Backed Securities		Foreign Corporate Securities		Total
Beginning balance		$	(2)	$	(6)	$	(1)	$	(9)
Credit losses on securities where credit
losses were not previously recorded		—		—		—		—
Increases in allowance on previously
impaired securities		—		—		—		—
Decreases in allowance on previously
impaired securities		—		—		—		—
Reduction in allowance due to disposals		—		—		—		—
Balance, end of period		$	(2)	$	(6)	$	(1)	$	(9)

(Some amounts may not reconcile due to rounding.)

Schedule of Proceeds and Split Between Gross Gains and Losses, from Sales of Fixed Maturity Securities

The proceeds and split between gross gains and losses from dispositions of fixed maturity and equity securities are presented in the table below for the periods indicated:


	Three Months Ended March 31,
(Dollars in millions)		2024		2023
Proceeds from sales of fixed maturity securities - available for sale		$	407	$	72
Gross gains from dispositions		11		11
Gross losses from dispositions		(18)		(9)

Proceeds from sales of equity securities		$	—	$	46
Gross gains from dispositions		1		7
Gross losses from dispositions		—		—

(Some amounts may not reconcile due to rounding.)