
	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized				Fair Value
(at September 30, 2023, in millions)					Gains		Losses
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities	$	6,575	$	—	$	—	$	363	$	6,212
Obligations of U.S. states, municipalities and political subdivisions:
Local general obligation	18,358		—		1		2,675		15,684
Revenue	9,750		—		2		1,275		8,477
State general obligation	1,174		—		—		137		1,037
Pre-refunded	1,048		—		1		9		1,040
Total obligations of U.S. states, municipalities and political subdivisions	30,330		—		4		4,096		26,238
Debt securities issued by foreign governments	1,037		—		1		56		982
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	6,927		—		7		411		6,523
Corporate and all other bonds	35,923		4		16		3,306		32,629
Total	$	80,792	$	4	$	28	$	8,232	$	72,584


	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized				Fair Value
(at December 31, 2022, in millions)					Gains		Losses
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities	$	5,798	$	—	$	3	$	363	$	5,438
Obligations of U.S. states, municipalities and political subdivisions:
Local general obligation	19,615		—		33		1,825		17,823
Revenue	11,076		—		29		907		10,198
State general obligation	1,104		—		3		88		1,019
Pre-refunded	2,323		—		17		1		2,339
Total obligations of U.S. states, municipalities and political subdivisions	34,118		—		82		2,821		31,379
Debt securities issued by foreign governments	1,049		—		—		55		994
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	2,178		—		13		200		1,991
Corporate and all other bonds	34,237		3		37		2,913		31,358
Total	$	77,380	$	3	$	135	$	6,352	$	71,160

Pre-refunded bonds of $1.04 billion and $2.34 billion at September 30, 2023 and December 31, 2022, respectively, were bonds for which U.S. states or municipalities have established irrevocable trusts that are almost exclusively comprised of U.S. Treasury securities and obligations of U.S. government and government agencies and authorities. These trusts were created to fund the payment of principal and interest due under the bonds.

Proceeds from the sales of fixed maturities classified as available for sale were $4.62 billion and $3.95 billion during the nine months ended September 30, 2023 and 2022, respectively. Gross gains of $26 million and $17 million and gross losses of $93 million and $52 million were realized on those sales during the nine months ended September 30, 2023 and 2022, respectively.



(at September 30, 2023, in millions)	Cost		Gross Gains		Gross Losses		Fair Value
Common stock	$	502	$	65	$	40	$	527
Non-redeemable preferred stock	44		2		—		46
Total	$	546	$	67	$	40	$	573


(at December 31, 2022, in millions)	Cost		Gross Gains		Gross Losses		Fair Value
Common stock	$	706	$	89	$	32	$	763
Non-redeemable preferred stock	41		3		—		44
Total	$	747	$	92	$	32	$	807

For the nine months ended September 30, 2023 and 2022, the Company recognized $11 million and $110 million of net losses on equity securities still held as of September 30, 2023 and 2022, respectively.

The following tables summarize, for all fixed maturities classified as available for sale in an unrealized loss position at September 30, 2023 and December 31, 2022, the aggregate fair value and gross unrealized loss by the length of time those securities have been continuously in an unrealized loss position. The fair value amounts reported in the tables are estimates that are prepared using the process described in note 4 herein and in note 4 of the notes to the consolidated financial statements in the Company’s 2022 Annual Report. The Company also relies upon estimates of several factors in its review and evaluation of individual investments, using the process described in note 1 of the notes to the consolidated financial statements in the Company’s 2022 Annual Report to determine whether a credit loss impairment exists.


	Less than 12 months				12 months or longer				Total
(at September 30, 2023, in millions)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Fixed maturities
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities	$	2,979	$	32	$	3,083	$	331	$	6,062	$	363
Obligations of U.S. states, municipalities and political subdivisions	12,050		703		13,625		3,393		25,675		4,096
Debt securities issued by foreign governments	201		6		769		50		970		56
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	5,032		162		1,373		249		6,405		411
Corporate and all other bonds	5,680		167		26,034		3,139		31,714		3,306
Total	$	25,942	$	1,070	$	44,884	$	7,162	$	70,826	$	8,232


	Less than 12 months				12 months or longer				Total
(at December 31, 2022, in millions)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Fixed maturities
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities	$	2,835	$	100	$	1,679	$	263	$	4,514	$	363
Obligations of U.S. states, municipalities and political subdivisions	19,251		1,975		3,134		846		22,385		2,821
Debt securities issued by foreign governments	604		22		367		33		971		55
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	1,414		128		316		72		1,730		200
Corporate and all other bonds	24,080		1,635		6,096		1,278		30,176		2,913
Total	$	48,184	$	3,860	$	11,592	$	2,492	$	59,776	$	6,352

The following tables summarize, for all fixed maturities reported at fair value for which fair value was less than 80% of amortized cost at September 30, 2023 and December 31, 2022, the gross unrealized investment loss by length of time those securities have continuously been in an unrealized loss position of greater than 20% of amortized cost:


	Period For Which Fair Value is Less Than 80% of Amortized Cost
(at September 30, 2023, in millions)	3 months or less		Greater than 3 months, 6 months or less		Greater than 6 months, 12 months or less		Greater than 12 months		Total
Fixed maturities
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities	$	17	$	—	$	—	$	—	$	17
Obligations of U.S. states, municipalities and political subdivisions	948		167		140		1,024		2,279
Debt securities issued by foreign governments	—		1		—		—		1
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	46		54		—		—		100
Corporate and all other bonds	822		246		45		66		1,179
Total	$	1,833	$	468	$	185	$	1,090	$	3,576


	Period For Which Fair Value is Less Than 80% of Amortized Cost
(at December 31, 2022, in millions)	3 months or less		Greater than 3 months, 6 months or less		Greater than 6 months, 12 months or less		Greater than 12 months		Total
Fixed maturities
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities	$	—	$	—	$	—	$	—	$	—
Obligations of U.S. states, municipalities and political subdivisions	81		776		643		—		1,500
Debt securities issued by foreign governments	1		—		—		—		1
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	4		48		—		—		52
Corporate and all other bonds	89		526		8		—		623
Total	$	175	$	1,350	$	651	$	—	$	2,176

Increases in interest rates resulted in the gross unrealized investment losses disclosed in the tables above; however, the net unrealized loss is considered temporary in nature as the decrease in value is not due to credit impairments and there is no impact on expected contractual cash flows from fixed maturities.

The following tables present changes in the allowance for expected credit losses on fixed maturities classified as available for sale for the category of Corporate and All Other Bonds (no other categories of fixed maturities currently have an allowance for expected credit losses):


	Fixed Maturities
	Corporate and All Other Bonds
	At and For the Three Months Ended
(in millions)	September 30, 2023		September 30, 2022

Balance, beginning of period	$	4	$	4
Additions for expected credit losses on securities where no credit losses were previously recognized	—		—
Additions for expected credit losses on securities where credit losses were previously recognized	—		—
Reductions due to sales/defaults of credit-impaired securities	—		(1)
Reductions for impairments of securities which the Company intends to sell or more likely than not will be required to sell	—		—
Balance, end of period	$	4	$	3


	Fixed Maturities
	Corporate and All Other Bonds
	At and For the Nine Months Ended
(in millions)	September 30, 2023		September 30, 2022

Balance, beginning of period	$	3	$	3
Additions for expected credit losses on securities where no credit losses were previously recognized	—		—
Additions for expected credit losses on securities where credit losses were previously recognized	1		1
Reductions due to sales/defaults of credit-impaired securities	—		(1)
Reductions for impairments of securities which the Company intends to sell or more likely than not will be required to sell	—		—
Balance, end of period	$	4	$	3

Total net impairment charges, including credit impairments, reported in net realized investment losses in the consolidated statement of income, were $1 million and $14 million for the three months ended September 30, 2023 and 2022, respectively, and $2 million and $35 million for the nine months ended September 30, 2023 and 2022, respectively. Credit losses related to the fixed maturity portfolio for both the three and nine months ended September 30, 2023 and 2022 represented less than 1% of the fixed maturity portfolio on a pre-tax basis and less than 1% of shareholders’ equity on an after-tax basis.

Included in other investments are private equity, hedge fund and real estate partnerships that are accounted for under the equity method of accounting and typically report their financial statement information to the Company one month to three months following the end of the reporting period. Accordingly, net investment income from these other investments is generally reflected in the Company’s financial statements on a quarter lag basis.