The amortized cost and fair value of investments in fixed maturities classified as available for sale were as follows:


	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized				Fair Value
(at December 31, 2024, in millions)					Gains		Losses
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities	$	5,735	$	—	$	4	$	169	$	5,570
Obligations of U.S. states, municipalities and political subdivisions:
Local general obligation	18,604		—		23		1,604		17,023
Revenue	9,268		—		16		704		8,580
State general obligation	1,081		—		2		73		1,010
Pre-refunded	573		—		2		3		572
Total obligations of U.S. states, municipalities and political subdivisions	29,526		—		43		2,384		27,185
Debt securities issued by foreign governments	917		—		5		13		909
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	12,888		—		53		336		12,605
Corporate and all other bonds	39,211		2		118		1,930		37,397
Total	$	88,277	$	2	$	223	$	4,832	$	83,666


	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized				Fair Value
(at December 31, 2023, in millions)					Gains		Losses
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities	$	6,591	$	—	$	8	$	231	$	6,368
Obligations of U.S. states, municipalities and political subdivisions:
Local general obligation	18,374		—		90		1,265		17,199
Revenue	9,748		—		52		616		9,184
State general obligation	1,209		—		7		59		1,157
Pre-refunded	963		—		5		2		966
Total obligations of U.S. states, municipalities and political subdivisions	30,294		—		154		1,942		28,506
Debt securities issued by foreign governments	1,035		—		2		31		1,006
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	7,874		—		120		176		7,818
Corporate and all other bonds	35,987		5		187		2,060		34,109
Total	$	81,781	$	5	$	471	$	4,440	$	77,807

The amortized cost and fair value of fixed maturities by contractual maturity follow. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


(at December 31, 2024, in millions)	Amortized Cost		Fair Value
Due in one year or less	$	7,357	$	7,328
Due after 1 year through 5 years	23,640		22,965
Due after 5 years through 10 years	22,647		20,897
Due after 10 years	21,745		19,871
	75,389		71,061
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	12,888		12,605
Total	$	88,277	$	83,666

Pre-refunded bonds of $572 million and $966 million at December 31, 2024 and 2023, 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.

The Company’s fixed maturity investment portfolio at December 31, 2024 and 2023 included $12.61 billion and $7.82 billion, respectively, of residential mortgage-backed securities, which include pass-through securities and collateralized mortgage obligations (CMOs). Included in the totals at December 31, 2024 and 2023 were $9.93 billion and $6.23 billion, respectively, of GNMA, FNMA, FHLMC (excluding FHA project loans) and Canadian government guaranteed residential mortgage-backed pass-through securities classified as available for sale. Also included in those totals were residential CMOs classified as available for sale with a fair value of $2.68 billion and $1.59 billion at December 31, 2024 and 2023, respectively. Approximately 43% and 33% of the Company’s CMO holdings at December 31, 2024 and 2023, respectively, were guaranteed by or fully collateralized by securities issued by GNMA, FNMA or FHLMC. The weighted average credit rating of the $1.53 billion and $1.07 billion of non-guaranteed CMO holdings was "Aaa" at both December 31, 2024 and 2023. The weighted average credit rating of all of the above securities was “Aaa/Aa1” at both December 31, 2024 and 2023.

At December 31, 2024 and 2023, the Company held commercial mortgage-backed securities (CMBS, including FHA project loans) of $1.15 billion and $1.04 billion, respectively, which are included in “Corporate and all other bonds” in the tables above. At December 31, 2024 and 2023, approximately $327 million and $116 million of these securities, respectively, or the loans backing such securities, contained guarantees by the U.S. government or a government-sponsored enterprise. The weighted average credit rating of the $825 million and $922 million of non-guaranteed securities at December 31, 2024 and 2023, respectively, was “Aaa” at both dates. The CMBS portfolio is supported by loans that are diversified across economic sectors and geographical areas. The weighted average credit rating of the CMBS portfolio was "Aaa/Aa1" and “Aaa” at December 31, 2024 and 2023, respectively.

Proceeds from the sales of fixed maturities classified as available for sale were $1.63 billion, $4.98 billion and $5.66 billion in 2024, 2023 and 2022, respectively. Gross gains of $2 million, $26 million and $27 million and gross losses of $62 million, $119 million and $99 million were realized on those sales in 2024, 2023 and 2022, respectively. Included in net realized investment losses in 2024, 2023 and 2022 were $66 million, $0 million and $0 million, respectively, of losses resulting from the early redemption of fixed maturities by the issuer prior to the bonds' maturity date.

At December 31, 2024 and 2023, the Company’s insurance subsidiaries had $3.96 billion and $4.04 billion, respectively, of securities on deposit at financial institutions in certain states pursuant to the respective states’ insurance regulatory requirements. Funds deposited with third parties to be used as collateral to secure various liabilities on behalf of insureds, cedants and other creditors had a fair value of $46 million and $54 million at December 31, 2024 and 2023, respectively. In addition, the Company utilizes Lloyd’s trust deposits, whereby owned securities with a fair value of approximately $13 million

and $31 million held by a wholly-owned subsidiary at December 31, 2024 and 2023, respectively, and $86 million and $85 million held by TRV at December 31, 2024 and 2023, respectively, were pledged into Lloyd’s trust accounts to provide a portion of the capital needed to support the Company’s obligations at Lloyd’s.

The cost and fair value of investments in equity securities were as follows:


(at December 31, 2024, in millions)	Cost		Gross Gains		Gross Losses		Fair Value
Common stock	$	500	$	150	$	11	$	639
Non-redeemable preferred stock	44		4		—		48
Total	$	544	$	154	$	11	$	687

The Company’s real estate investments include warehouses, office buildings and other commercial land and properties that are directly owned. The Company negotiates commercial leases with individual tenants through unrelated, licensed real estate brokers. Negotiated terms and conditions include, among others, rental rates, length of lease period and improvements to the premises to be provided by the Company.

Proceeds from the sales of real estate investments were $64 million in 2024, $0 million in 2023 and $10 million in 2022. Gains of $17 million and $4 million were realized on those sales in 2024 and 2022, respectively. Net realized investment losses in 2024, 2023 and 2022 included $5 million, $9 million and $12 million, respectively, of impairment charges related to real estate. Accumulated depreciation on real estate held for investment purposes was $581 million and $556 million at December 31, 2024 and 2023, respectively.

Future minimum rental income on operating leases relating to the Company’s real estate properties is expected to be $118 million, $107 million, $93 million, $72 million and $46 million for 2025, 2026, 2027, 2028 and 2029, respectively, and $87 million for 2030 and thereafter.

The Company’s short-term securities consist of Aaa-rated registered money market funds, U.S. Treasury securities, high-quality commercial paper (primarily A1/P1) and high-quality corporate securities purchased within a year to their maturity with a combined average of 23 days to maturity at December 31, 2024. The amortized cost of these securities, which totaled $4.77 billion and $5.14 billion at December 31, 2024 and 2023, respectively, approximated their fair value.

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.

Entities which do not have sufficient equity at risk to allow the entity to finance its activities without additional financial support or in which the equity investors, as a group, do not have the characteristic of a controlling financial interest are referred to as variable interest entities (VIE). A VIE is consolidated by the variable interest holder that is determined to have the controlling financial interest (primary beneficiary) as a result of having both the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. The Company determines whether it is the primary beneficiary of an entity subject to consolidation based on a qualitative assessment of the VIE’s capital structure, contractual terms, nature of the VIE’s operations and purpose and the Company’s relative exposure to the related risks of the VIE on the date it becomes initially involved in the VIE. The Company reassesses its VIE determination with respect to an entity on an ongoing basis.

The Company is a passive investor in limited partner equity interests issued by third party VIEs. These include certain of the Company’s investments in private equity limited partnerships, hedge funds and real estate partnerships where the Company is not related to the general partner. These investments are generally accounted for under the equity method and reported in the Company’s consolidated balance sheet as other investments unless the Company is deemed the primary beneficiary. These equity interests generally cannot be redeemed. Distributions from these investments are received by the Company as a result of liquidation of the underlying investments of the funds and/or as income distribution. The Company’s maximum exposure to loss with respect to these investments is limited to the investment carrying amounts reported in the Company’s consolidated balance sheet and any unfunded commitment. The Company considers an investment in a VIE in which it has a 20% or greater equity interest as a significant VIE. Neither the Company’s carrying amounts nor the unfunded commitments related to these significant VIE’s are material individually or in the aggregate.

The following tables summarize, for all fixed maturities classified as available for sale in an unrealized loss position at December 31, 2024 and 2023, 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. The Company also relies upon estimates of several factors in its review and evaluation of individual investments, using the process described in note 1, in determining whether a credit loss impairment exists.


	Less than 12 months				12 months or longer				Total
(at December 31, 2024, 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	$	557	$	1	$	2,830	$	168	$	3,387	$	169
Obligations of U.S. states, municipalities and political subdivisions	8,584		160		15,007		2,224		23,591		2,384
Debt securities issued by foreign governments	113		1		454		12		567		13
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	7,359		148		1,419		188		8,778		336
Corporate and all other bonds	7,341		144		21,999		1,786		29,340		1,930
Total	$	23,954	$	454	$	41,709	$	4,378	$	65,663	$	4,832


	Less than 12 months				12 months or longer				Total
(at December 31, 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	$	1,864	$	7	$	2,985	$	224	$	4,849	$	231
Obligations of U.S. states, municipalities and political subdivisions	3,868		31		14,351		1,911		18,219		1,942
Debt securities issued by foreign governments	30		—		763		31		793		31
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	1,215		9		1,433		167		2,648		176
Corporate and all other bonds	1,016		9		26,444		2,051		27,460		2,060
Total	$	7,993	$	56	$	45,976	$	4,384	$	53,969	$	4,440

The following tables summarize, for all fixed maturities reported at fair value for which fair value was less than 80% of amortized cost at December 31, 2024 and 2023, 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 December 31, 2024, 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	366		—		43		635		1,044
Debt securities issued by foreign governments	—		—		—		—		—
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	58		—		—		—		58
Corporate and all other bonds	13		—		—		3		16
Total	$	437	$	—	$	43	$	638	$	1,118


	Period For Which Fair Value is Less Than 80% of Amortized Cost
(at December 31, 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	$	—	$	—	$	—	$	—	$	—
Obligations of U.S. states, municipalities and political subdivisions	—		2		31		642		675
Debt securities issued by foreign governments	—		—		—		—		—
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	—		—		—		—		—
Corporate and all other bonds	1		3		22		25		51
Total	$	1	$	5	$	53	$	667	$	726

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.


(for the year ended December 31, in millions)	2024		2023		2022
Fixed maturities
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities	$	—	$	—	$	12
Obligations of U.S. states, municipalities and political subdivisions	—		1		14
Debt securities issued by foreign governments	—		—		—
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	—		—		—
Corporate and all other bonds	5		2		—
Total fixed maturities	$	5	$	3	$	26

The following table presents 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
(in millions)	At and For the Twelve Months Ended December 31, 2024		At and For the Twelve Months Ended December 31, 2023

Balance, beginning of period	$	5	$	3
Additions for expected credit losses on securities where no credit losses were previously recognized	5		1
Additions (reductions) for expected credit losses on securities where credit losses were previously recognized	(1)		1
Reductions due to sales/defaults of credit-impaired securities	(7)		—
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	$	2	$	5

Total net impairment charges, including credit impairments, reported in net realized investment losses in the consolidated statement of income, were $10 million, $12 million and $38 million for the years ended December 31, 2024, 2023 and 2022, respectively. Net realized investment losses in 2024, 2023 and 2022 included $5 million, $9 million and $12 million, respectively, of realized losses related to real estate. Credit losses related to the fixed maturity portfolio for 2024 and 2023 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 at both December 31, 2024 and 2023.

Concentrations of credit risk arise from exposure to counterparties that are engaged in similar activities and have similar economic characteristics that could cause their ability to meet contractual obligations to be similarly affected by changes in economic or other conditions. The Company seeks to mitigate credit risk by actively monitoring the creditworthiness of counterparties, obtaining collateral as deemed appropriate and applying controls that include credit approvals, limits of credit exposure and other monitoring procedures.

At December 31, 2024 and 2023, other than U.S. Treasury securities and obligations of U.S. government and government agencies and authorities, the Company was not exposed to any concentration of credit risk of a single issuer greater than 5% of the Company’s shareholders’ equity.

Included in fixed maturities are below investment grade securities totaling $980 million and $982 million at December 31, 2024 and 2023, respectively. The Company defines its below investment grade securities as those securities rated below investment grade by external rating agencies, or the equivalent by the Company when a public rating does not exist. Such securities include below investment grade bonds that are publicly traded and certain other privately issued bonds that are classified as below investment grade loans.


(for the year ended December 31, in millions)	2024		2023		2022
Gross investment income
Fixed maturities	$	2,948	$	2,472	$	2,113
Equity securities	21		18		17
Short-term securities	280		241		73
Real estate investments	70		64		66
Other investments	318		171		336
Gross investment income	3,637		2,966		2,605
Investment expenses	47		44		43
Net investment income	$	3,590	$	2,922	$	2,562


(at and for the year ended December 31, in millions)	2024		2023		2022
Changes in net unrealized investment gains (losses)
Fixed maturities	$	(640)	$	2,248	$	(9,279)

Other investments	1		2		(1)
Change in net pre-tax unrealized gains (losses) on investment securities	(639)		2,250		(9,280)
Related tax expense (benefit)	(128)		481		(1,967)
Change in net unrealized gains (losses) on investment securities	(511)		1,769		(7,313)


Balance, beginning of year	(3,129)		(4,898)		2,415
Balance, end of year	$	(3,640)	$	(3,129)	$	(4,898)

From time to time, the Company enters into certain derivative financial instruments that are reported on the balance sheet at fair value. The change in fair value of these investments is reported in net realized investment gains and losses.