XML 39 R27.htm IDEA: XBRL DOCUMENT v3.24.2.u1
INVESTMENTS (Tables)
 6 Months Ended
Jun. 30, 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 June 30, 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$1,070 $— $3 $(49)1,024 
Obligations of U.S. states and political subdivisions114 — 1 (9)105 
Corporate Securities8,297 (42)70 (347)7,979 
Asset-backed Securities5,317 — 27 (27)5,317 
Mortgage-backed securities
Commercial1,016 — 1 (83)934 
Agency Residential5,025 — 22 (302)4,745 
Non-agency Residential940 — 8 (5)943 
Foreign government securities2,370 — 11 (140)2,240 
Foreign corporate securities5,985 — 46 (287)5,744 
Total fixed maturity securities - available for sale$30,134 $(42)$188 $(1,249)$29,031 
(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 subdivisions138 — 1 (11)128 
Corporate securities7,587 (47)135 (322)7,353 
Asset-backed securities5,644 — 25 (51)5,618 
Mortgage-backed securities
Commercial1,091 — 1 (92)1,000 
Agency residential4,869 — 55 (229)4,695 
Non-agency residential431 — 14 (2)443 
Foreign government securities2,042 — 33 (108)1,967 
Foreign corporate securities5,720 (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 June 30, 2024
(Dollars in millions)Amortized
Cost		Allowance for
Credit Losses		Unrealized
Appreciation		Unrealized
Depreciation		Fair
Value
Fixed maturity securities - held to maturity
Corporate Securities$173 $(2)$5 $(5)$171 
Asset-backed Securities517 (5)5 (8)509 
Mortgage-backed securities
Commercial21 — — — 21 
Foreign corporate securities84 (1)4 — 87 
Total fixed maturity securities - held to maturity$796 (8)$14 $(13)$788 
(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 Securities609 (5)4 (10)597 
Mortgage-backed securities
Commercial21 — — — 21 
Foreign corporate securities84 (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 June 30, 2024At 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$1,472 $1,439 $1,289 $1,261 
Due after one year through five years7,560 7,264 7,094 6,858 
Due after five years through ten years6,350 6,050 5,613 5,405 
Due after ten years2,454 2,339 2,537 2,460 
Asset-backed securities5,317 5,317 5,644 5,618 
Mortgage-backed securities
Commercial1,016 934 1,091 1,000 
Agency residential5,025 4,745 4,869 4,695 
Non-agency residential940 943 431 443 
Total fixed maturity securities - available for sale$30,134 $29,031 $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 June 30, 2024At 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$12 $12 $5 $5 
Due after one year through five years53 52 59 58 
Due after five years through ten years42 41 43 42 
Due after ten years151 154 127 131 
Asset-backed securities517 509 609 597 
Mortgage-backed securities
Commercial21 21 21 21 
Total fixed maturity securities - held to maturity$796 $788 $864 $854 
(Some amounts may not reconcile due to rounding.)
Schedule of Changes in Net Unrealized Appreciation (Depreciation) for the Company's Investments
The changes in net URA(D) for the Company’s investments are as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
(Dollars in millions)2024202320242023
Increase (decrease) during the period between the fair value and cost of
investments carried at fair value, and deferred taxes thereon:
Fixed maturity securities - available for sale and short-term investments$(90)$(195)$(276)$84 
Change in URA(D), pre-tax(90)(195)(276)84 
Deferred tax benefit (expense)30 28 63 (2)
Change in URA(D), net of deferred taxes, included in shareholders’ equity$(60)$(167)$(213)$82 
(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 the individual securities had been in a continuous unrealized loss position for the periods indicated:
Duration of Unrealized Loss at June 30, 2024 by Security Type
Less than 12 monthsGreater than 12 monthsTotal
(Dollars in millions)Fair ValueGross
Unrealized
Depreciation		Fair ValueGross
Unrealized
Depreciation		Fair ValueGross
Unrealized
Depreciation
Fixed maturity securities - available for sale
U.S. Treasury securities and obligations of
U.S. government agencies and corporations$187 $(4)$734 $(44)$922 $(49)
Obligations of U.S. states and political subdivisions5 — 64 (9)69 (9)
Corporate securities2,331 (60)2,868 (286)5,199 (346)
Asset-backed securities341 (3)607 (24)948 (27)
Mortgage-backed securities
Commercial194 (18)694 (65)888 (83)
Agency residential1,853 (100)1,567 (203)3,420 (302)
Non-agency residential384 (3)60 (2)444 (5)
Foreign government securities713 (24)927 (116)1,639 (140)
Foreign corporate securities1,406 (21)2,457 (266)3,864 (287)
Total$7,414 $(233)$9,978 $(1,016)$17,392 $(1,248)
Securities where an allowance for credit loss was recorded15 (1)2 — 16 (1)
Total fixed maturity securities - available for sale$7,428 $(234)$9,980 $(1,016)$17,408 $(1,249)
(Some amounts may not reconcile due to rounding.)
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 December 31, 2023 by Security Type
Less than 12 monthsGreater than 12 monthsTotal
(Dollars in millions)Fair ValueGross
Unrealized
Depreciation		Fair ValueGross
Unrealized
Depreciation		Fair ValueGross
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 subdivisions3 — 74 (11)77 (11)
Corporate securities1,019 (58)2,780 (263)3,799 (321)
Asset-backed securities196 (2)2,014 (49)2,210 (51)
Mortgage-backed securities
Commercial181 (19)742 (73)923 (92)
Agency residential423 (4)2,126 (225)2,549 (229)
Non-agency residential126 (1)4 — 130 — 
Foreign government securities172 (7)985 (101)1,156 (108)
Foreign corporate securities324 (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 recorded2 (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 June 30, 2024 by Maturity
Less than 12 monthsGreater than 12 monthsTotal
(Dollars in millions)Fair ValueGross
Unrealized
Depreciation		Fair ValueGross
Unrealized
Depreciation		Fair ValueGross
Unrealized
Depreciation
Fixed maturity securities - available for sale
Due in one year or less$256 $(7)$763 $(31)$1,019 $(39)
Due in one year through five years1,602 (28)3,727 (299)5,328 (326)
Due in five years through ten years1,955 (49)1,971 (303)3,927 (352)
Due after ten years829 (26)589 (88)1,418 (114)
Asset-backed securities341 (3)607 (24)948 (27)
Mortgage-backed securities2,431 (120)2,321 (270)4,752 (390)
Total$7,414 $(233)$9,978 $(1,016)$17,392 $(1,248)
Securities where an allowance for credit loss was recorded15 (1)2 — 16 (1)
Total fixed maturity securities - available for sale$7,428 $(234)$9,980 $(1,016)$17,408 $(1,249)
(Some amounts may not reconcile due to rounding.)
Duration of Unrealized Loss at December 31, 2023 by Maturity
Less than 12 monthsGreater than 12 monthsTotal
(Dollars in millions)Fair ValueGross
Unrealized
Depreciation		Fair ValueGross
Unrealized
Depreciation		Fair ValueGross
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 years699 (18)3,841 (271)4,540 (289)
Due in five years through ten years328 (15)2,306 (310)2,633 (325)
Due after ten years429 (39)417 (77)845 (116)
Asset-backed securities196 (2)2,014 (49)2,210 (51)
Mortgage-backed securities729 (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 recorded2 (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
June 30,		Six Months Ended
June 30,
(Dollars in millions)2024202320242023
Fixed maturities$369 $276 $721 $523 
Equity securities1 1 2 2 
Short-term investments and cash43 34 81 51 
Other invested assets
Limited partnerships94 53 148 38 
Other 30 6 50 27 
Gross investment income before adjustments 537 369 1,001 641 
Funds held interest income (expense)9 2 15 2 
Future policy benefit reserve income (expense)— — — — 
Gross investment income 545 371 1,016 643 
Investment expenses 18 14 31 26 
Net investment income$528 $357 $985 $617 
(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
June 30,		Six Months Ended
June 30,
(Dollars in millions)2024202320242023
Fixed maturity securities
Allowance for credit losses$4 $— $6 $(8)
Net realized gains (losses) from dispositions(15)(3)(22)(1)
Equity securities, fair value
Net realized gains (losses) from dispositions— — 1 7 
Gains (losses) from fair value adjustments(5)8 (8)12 
Other invested assets(1)— (1)— 
Total net gains (losses) on investments$(17)$5 $(24)$10 
(Some amounts may not reconcile due to rounding.)
Schedule of Roll Forward of Allowance for Credit Losses of Fixed Maturities, Available for Sale
The following tables provide a roll forward of the Company’s beginning and ending balance of allowance for credit losses for the periods indicated:
Roll Forward of Allowance for Credit Losses - Fixed Maturities - Available for Sale
Three Months Ended June 30, 2024Six Months Ended June 30, 2024
(Dollars in millions)Corporate
Securities		Foreign
Corporate
Securities		TotalCorporate
Securities		Foreign
Corporate
Securities		Total
Beginning balance$(45)$— $(46)$(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 disposals3 — 4 5 1 6 
Balance, end of period$(42)$— $(42)$(42)$— $(42)
(Some amounts may not reconcile due to rounding.)
Roll Forward of Allowance for Credit Losses - Fixed Maturities - Available for Sale
Three Months Ended June 30, 2023Six Months Ended June 30, 2023
(Dollars in millions)Corporate
Securities		Foreign
Corporate
Securities		TotalCorporate
Securities		Foreign
Corporate
Securities		Total
Beginning balance$(55)$(7)$(62)$(45)$(10)$(54)
Credit losses on securities where credit
losses were not previously recorded(2)— (2)(14)— (14)
Increases in allowance on previously
impaired securities— — — — — — 
Decreases in allowance on previously
impaired securities— — — — — — 
Reduction in allowance due to disposals1 — 1 4 3 6 
Balance, end of period$(56)$(7)$(63)$(56)$(7)$(63)
(Some amounts may not reconcile due to rounding.)
Schedule of Roll Forward of Allowance for Credit Losses of Fixed Maturities, Held to Maturity
Roll Forward of Allowance for Credit Losses - Fixed Maturities - Held to Maturity
Three Months Ended June 30, 2024Six Months Ended June 30, 2024
(Dollars in millions)Corporate
Securities		Asset-Backed
Securities		Foreign
Corporate
Securities		TotalCorporate
Securities		Asset-Backed
Securities		Foreign
Corporate
Securities		Total
Beginning balance$(2)$(5)$(1)$(9)$(2)$(5)$(1)$(8)
Credit losses on securities where credit
losses were not previously recorded— — — — — — (1)(1)
Increases in allowance on previously
impaired securities— — — — — — — — 
Decreases in allowance on previously
impaired securities— — — — — — — — 
Reduction in allowance due to disposals— — — — — 1 — 1 
Balance, end of period$(2)$(5)$(1)$(8)$(2)$(5)$(1)$(8)
(Some amounts may not reconcile due to rounding.)
Roll Forward of Allowance for Credit Losses - Fixed Maturities - Held to Maturity
Three Months Ended June 30, 2023Six Months Ended June 30, 2023
(Dollars in millions)Corporate
Securities		Asset-Backed
Securities		Foreign
Corporate
Securities		TotalCorporate
Securities		Asset-Backed
Securities		Foreign
Corporate
Securities		Total
Beginning balance$(2)$(6)$(1)(9)$(2)$(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)(5)$(1)$(8)$(2)$(5)$(1)$(8)
(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
June 30,		Six Months Ended
June 30,
(Dollars in millions)2024202320242023
Proceeds from sales of fixed maturity securities - available for sale$678 $96 $1,085 $168 
Gross gains from dispositions16 7 26 17 
Gross losses from dispositions(30)(10)(48)(19)
Proceeds from sales of equity securities$15 $— $15 $46 
Gross gains from dispositions1 — 2 7 
Gross losses from dispositions— — — — 
(Some amounts may not reconcile due to rounding.)