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Investments (Tables)

3 Months Ended

Mar. 31, 2024

The significant components of Net investment income are presented in the following table.


Three months ended March 31
(In millions)	2024		2023
Fixed maturity securities	$	502	$	470
Equity securities	22		12
Limited partnership investments	54		25
Mortgage loans	15		14
Short-term investments	28		15
Trading portfolio	1		3
Other	8		5
Gross investment income	630		544
Investment expense	(21)		(19)
Net investment income	$	609	$	525
Net investment income (loss) recognized due to the change in fair value of common stock held as of March 31, 2024 and 2023	$	13	$	(1)

Net realized investment gains (losses)

Net investment gains (losses) are presented in the following table.


Three months ended March 31
(In millions)	2024		2023
Net investment gains (losses):
Fixed maturity securities:
Gross gains	$	14	$	35
Gross losses	(46)		(57)
Net investment gains (losses) on fixed maturity securities	(32)		(22)
Equity securities	11		(14)


Short-term investments and other	(1)		1
Net investment gains (losses)	$	(22)	$	(35)
Net investment gains (losses) recognized due to the change in fair value of non-redeemable preferred stock held as of March 31, 2024 and 2023	$	11	$	(2)

Components of net other than temporary impairment losses recognized in earnings by asset type

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.


Three months ended March 31
(In millions)	2024		2023
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	9	$	8
Asset-backed	5		—
Impairment losses (gains) recognized in earnings	$	14	$	8

Summary of fixed maturity securities

The following tables present a summary of fixed maturity securities.


March 31, 2024	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Estimated Fair Value
(In millions)
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	25,221	$	485	$	1,374	$	3	$	24,329
States, municipalities and political subdivisions	7,726		318		756		—		7,288
Asset-backed:
Residential mortgage-backed	3,563		10		483		—		3,090
Commercial mortgage-backed	1,838		8		193		8		1,645
Other asset-backed	3,586		19		251		9		3,345
Total asset-backed	8,987		37		927		17		8,080
U.S. Treasury and obligations of government-sponsored enterprises	181		—		2		—		179
Foreign government	763		3		37		—		729

Total fixed maturity securities available-for-sale	42,878		843		3,096		20		40,605
Total fixed maturity securities trading	—		—		—		—		—
Total fixed maturity securities	$	42,878	$	843	$	3,096	$	20	$	40,605


December 31, 2023	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Estimated Fair Value
(In millions)
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	25,020	$	597	$	1,345	$	4	$	24,268
States, municipalities and political subdivisions	7,713		382		703		—		7,392
Asset-backed:
Residential mortgage-backed	3,411		16		425		—		3,002
Commercial mortgage-backed	1,862		7		230		8		1,631
Other asset-backed	3,515		13		256		4		3,268
Total asset-backed	8,788		36		911		12		7,901
U.S. Treasury and obligations of government-sponsored enterprises	152		1		2		—		151
Foreign government	741		6		34		—		713

Total fixed maturity securities available-for-sale	42,414		1,022		2,995		16		40,425
Total fixed maturity securities trading	—		—		—		—		—
Total fixed maturity securities	$	42,414	$	1,022	$	2,995	$	16	$	40,425

Debt securities, available-for-sale, unrealized loss position, fair value

The following tables present the estimated fair value and gross unrealized losses of available-for-sale fixed maturity securities in a gross unrealized loss position for which an allowance for credit loss has not been recorded, by the length of time in which the securities have continuously been in that position.


	Less than 12 Months				12 Months or Longer				Total
March 31, 2024	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
(In millions)
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	2,578	$	48	$	13,459	$	1,326	$	16,037	$	1,374
States, municipalities and political subdivisions	686		17		3,266		739		3,952		756
Asset-backed:
Residential mortgage-backed	434		8		2,159		475		2,593		483
Commercial mortgage-backed	131		2		1,162		191		1,293		193
Other asset-backed	588		9		1,833		242		2,421		251
Total asset-backed	1,153		19		5,154		908		6,307		927
U.S. Treasury and obligations of government-sponsored enterprises	100		1		28		1		128		2
Foreign government	136		2		452		35		588		37
Total	$	4,653	$	87	$	22,359	$	3,009	$	27,012	$	3,096


	Less than 12 Months				12 Months or Longer				Total
December 31, 2023	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
(In millions)
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	1,943	$	37	$	13,406	$	1,308	$	15,349	$	1,345
States, municipalities and political subdivisions	598		18		3,104		685		3,702		703
Asset-backed:
Residential mortgage-backed	233		4		2,212		421		2,445		425
Commercial mortgage-backed	200		5		1,184		225		1,384		230
Other asset-backed	392		8		1,869		248		2,261		256
Total asset-backed	825		17		5,265		894		6,090		911
U.S. Treasury and obligations of government-sponsored enterprises	65		1		23		1		88		2
Foreign government	52		1		450		33		502		34
Total	$	3,483	$	74	$	22,248	$	2,921	$	25,731	$	2,995

The following table presents the estimated fair value and gross unrealized losses of available-for-sale fixed maturity securities in a gross unrealized loss position for which an allowance for credit loss has not been recorded, by ratings distribution.


	March 31, 2024				December 31, 2023
(In millions)	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
U.S. Government, Government agencies and Government-sponsored enterprises	$	2,426	$	361	$	2,273	$	309
AAA	1,661		280		1,524		261
AA	4,109		690		3,817		658
A	6,324		570		5,652		517
BBB	11,672		1,083		11,523		1,095
Non-investment grade	820		112		942		155
Total	$	27,012	$	3,096	$	25,731	$	2,995

Debt securities, available-for-sale, allowance for credit loss

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 receivable on available-for-sale fixed maturity securities totaled $437 million, $435 million, and $407 million as of March 31, 2024, December 31, 2023, and March 31, 2023 and is excluded from the estimate of expected credit losses and the amortized cost basis in the table included within this Note.


(In millions)	Corporate and other bonds		Asset-backed		Total
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	—		—		—
Available-for-sale securities accounted for as PCD assets	—		—		—

Reductions to the allowance for credit losses:
Securities sold during the period (realized)	—		—		—
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	—		—		—
Recoveries of amounts previously written off	—		—		—

Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period	—		5		5
Balance as of March 31, 2024	$	3	$	17	$	20



(In millions)	Corporate and other bonds		Asset-backed		Total
Allowance for credit losses:
Balance as of January 1, 2023	$	—	$	1	$	1
Additions to the allowance for credit losses:
Securities for which credit losses were not previously recorded	—		—		—
Available-for-sale securities accounted for as PCD assets	9		—		9

Reductions to the allowance for credit losses:
Securities sold during the period (realized)	6		—		6
Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis	3		—		3
Write-offs charged against the allowance	—		—		—
Recoveries of amounts previously written off	—		—		—

Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period	1		—		1
Balance as of March 31, 2023	$	1	$	1	$	2

Contractual maturity

The following table presents available-for-sale fixed maturity securities by contractual maturity.


	March 31, 2024				December 31, 2023
(In millions)	Cost or Amortized Cost		Estimated Fair Value		Cost or Amortized Cost		Estimated Fair Value
Due in one year or less	$	1,238	$	1,207	$	1,121	$	1,091
Due after one year through five years	11,680		11,308		11,563		11,180
Due after five years through ten years	13,283		12,461		13,359		12,573
Due after ten years	16,677		15,629		16,371		15,581
Total	$	42,878	$	40,605	$	42,414	$	40,425

Financing receivable credit quality indicators

The following table presents the amortized cost basis of mortgage loans for each credit quality indicator by year of origination. The primary credit quality indicators utilized are debt service coverage ratios (DSCR) and loan-to-value ratios (LTV).


March 31, 2024	Mortgage Loans Amortized Cost Basis by Origination Year (1)
(In millions)	2024		2023		2022		2021		2020		Prior		Total
DSCR ≥1.6x
LTV less than 55%	$	—	$	33	$	9	$	2	$	97	$	283	$	424
LTV 55% to 65%	—		—		—		5		—		—		5
LTV greater than 65%	—		—		30		12		—		—		42
DSCR 1.2x - 1.6x
LTV less than 55%	—		28		5		—		13		63		109
LTV 55% to 65%	12		21		36		36		24		31		160
LTV greater than 65%	—		12		65		—		—		—		77
DSCR ≤1.2
LTV less than 55%	—		—		—		—		—		—		—
LTV 55% to 65%	—		32		75		—		—		43		150
LTV greater than 65%	—		—		28		21		—		48		97
Total	$	12	$	126	$	248	$	76	$	134	$	468	$	1,064

(1) The values in the table above reflect DSCR on a standardized amortization period and LTV based on the most recent appraised values trended forward using changes in a commercial real estate price index.