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INVESTMENTS
 12 Months Ended
Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
INVESTMENTS INVESTMENTS
The following tables show amortized cost, allowance for credit losses, gross unrealized appreciation, gross unrealized depreciation (“URA(D)”) and fair value of fixed maturity securities - available for sale for the periods indicated:
At December 31, 2023
(Dollars in millions)Amortized
Cost		Allowances for
Credit Loss		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$265 $— $— $(17)$247 
Obligations of U.S. states and political subdivisions138 — 1 (11)128 
Corporate securities4,400 (47)96 (160)4,289 
Asset-backed securities5,307 — 23 (48)5,282 
Mortgage-backed securities
Commercial575 — — (53)522 
Agency residential2,532 — 27 (124)2,435 
Non-agency residential429 — 14 (1)441 
Foreign government securities859 — 15 (39)835 
Foreign corporate securities1,800 — 35 (82)1,753 
Total fixed maturity securities - available for sale$16,304 $(48)$212 $(536)$15,932 
(Some amounts may not reconcile due to rounding.)
At December 31, 2022
(Dollars in millions)Amortized
Cost		Allowances for
Credit Loss		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$575 $— $— $(40)$535 
Obligations of U.S. states and political subdivisions444 — 2 (32)413 
Corporate securities3,913 (45)14 (322)3,561 
Asset-backed securities4,111 — 5 (165)3,951 
Mortgage-backed securities
Commercial569 — — (59)509 
Agency residential1,792 — 3 (167)1,628 
Non-agency residential3 — — — 3 
Foreign government securities696 — 2 (61)637 
Foreign corporate securities1,597 (1)4 (167)1,433 
Total fixed maturity securities - available for sale$13,699 $(46)$30 $(1,013)$12,671 
(Some amounts may not reconcile due to rounding.)
The following table shows amortized cost, allowance for credit losses, gross URA(D) and fair value of fixed maturity securities - held to maturity for the periods indicated:
At December 31, 2023
(Dollars in millions)Amortized
Cost		Allowances for
Credit Loss		Unrealized
Appreciation		Unrealized
Depreciation		Fair
Value
Fixed maturity securities - held to maturity
Corporate securities$150 $(2)$1 $(3)$146 
Asset-backed securities604 (5)4 (10)593 
Mortgage-backed securities
Commercial21 — — — 21 
Foreign corporate securities84 (1)7 — 90 
Total fixed maturity securities - held to maturity$859 $(8)$12 $(13)$850 
(Some amounts may not reconcile due to rounding.)
At December 31, 2022
(Dollars in millions)Amortized
Cost		Allowances for
Credit Loss		Unrealized
Appreciation		Unrealized
Depreciation		Fair
Value
Fixed maturity securities - held to maturity
Corporate securities$152 $(2)$— $(6)$144 
Asset-backed securities634 (6)2 (15)614 
Mortgage-backed securities
Commercial7 — — — 7 
Foreign corporate securities28 (1)2 — 28 
Total fixed maturity securities - held to maturity$820 $(9)$3 $(22)$793 
(Some amounts may not reconcile due to rounding.)
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 December 31, 2023At December 31, 2022
(Dollars in millions)Amortized
Cost		Fair
Value		Amortized
Cost		Fair
Value
Fixed maturity securities – available for sale
Due in one year or less$546 $537 $581 $563 
Due after one year through five years2,402 2,310 3,684 3,429 
Due after five years through ten years2,842 2,784 2,003 1,760 
Due after ten years1,672 1,621 958 827 
Asset-backed securities5,307 5,282 4,111 3,951 
Mortgage-backed securities
Commercial575 522 569 509 
Agency residential2,532 2,435 1,792 1,628 
Non-agency residential429 441 3 3 
Total fixed maturity securities - available for sale$16,304 $15,932 $13,699 $12,671 
(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 December 31, 2023At December 31, 2022
(Dollars in millions)Amortized
Cost		Fair
Value		Amortized
Cost		Fair
Value
Fixed maturity securities – held to maturity
Due in one year or less$5 $5 $5 $5 
Due after one year through five years59 58 63 61 
Due after five years through ten years43 42 43 41 
Due after ten years127 131 68 65 
Asset-backed securities604 593 634 614 
Mortgage-backed securities
Commercial21 21 7 7 
Total fixed maturity securities - held to maturity$859 $850 $820 $793 
(Some amounts may not reconcile due to rounding.)
During 2022, the Company re-designated a portion of its fixed maturity securities from its fixed maturity - available for sale portfolio to its fixed maturity - held to maturity portfolio. The fair value of the securities reclassified at the date of transfer was $722 million, net of allowance for current expected credit losses, which was subsequently recognized as the new amortized cost basis. As of December 31, 2023, $42 million of unrealized loss from the date of the re-designation remained in accumulated other comprehensive income on the balance sheet and will be amortized into income through an adjustment to the yields of the underlying securities over the remaining life of the securities. The fair values of these
securities incorporate the use of significant unobservable inputs and therefore are classified as Level 3 within the fair value hierarchy.
The Company evaluated fixed maturity securities classified as held to maturity for current expected credit losses as of December 31, 2023 utilizing risk characteristics of each security, including credit rating, remaining time to maturity, adjusted for prepayment considerations, and subordination level, and applying default and recovery rates, which include the incorporation of historical credit loss experience and macroeconomic forecasts, to develop an estimate of current expected credit losses. These fixed maturities classified as held to maturity are of a high credit quality and are all rated investment grade as of December 31, 2023.
The changes in net URA(D) for the Company’s investments are as follows:
Years Ended December 31,
(Dollars in millions)20232022
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 fore sale and short-term investments$667 $(1,187)
Change in unrealized appreciation (depreciation), pre-tax667 (1,187)
Deferred tax benefit (expense)(140)249 
Change in URA(D), net of deferred taxes, included in stockholder's equity$527 $(938)
(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
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$7 $— $238 $(17)$245 $(17)
Obligations of U.S. states and political subdivisions3 — 74 (11)77 (11)
Corporate securities673 (47)1,150 (112)1,822 (160)
Asset-backed securities179 (2)1,958 (46)2,138 (48)
Mortgage-backed securities
Commercial19 — 491 (53)511 (53)
Agency residential203 (2)1,030 (123)1,233 (124)
Non-agency residential125 (1)3 — 128 (1)
Foreign government securities38 (1)423 (38)461 (39)
Foreign corporate securities120 (2)821 (80)940 (82)
Total$1,367 $(54)$6,187 $(481)$7,554 $(536)
Securities where an allowance for credit loss was recorded2 (1)— — 2 (1)
Total fixed maturity securities - available for sale$1,369 $(55)$6,187 $(481)$7,556 $(536)
(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
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$84 $(1)$263 $(10)$348 $(11)
Due in one year through five years227 (5)1,317 (96)1,544 (101)
Due in five years through ten years150 (5)951 (128)1,101 (133)
Due after ten years379 (39)174 (25)553 (64)
Asset-backed securities179 (2)1,958 (46)2,138 (48)
Mortgage-backed securities347 (3)1,523 (176)1,871 (179)
Total$1,367 $(54)$6,187 $(481)$7,554 $(536)
Securities where an allowance for credit loss was recorded2 (1)— — 2 (1)
Total fixed maturity securities - available for sale$1,369 $(55)$6,187 $(481)$7,556 $(536)
(Some amounts may not reconcile due to rounding.)
The aggregate fair value and gross unrealized losses related to fixed maturity securities - available for sale in an unrealized loss position at December 31, 2023 were $7.6 billion and $536 million, respectively. The fair value of securities for the single issuer (the United States government) whose securities comprised the largest unrealized loss position at December 31, 2023, did not exceed 1.4% of the overall fair value of the Company’s fixed maturity securities available for sale. The fair value of the securities for the issuer with the second largest unrealized loss comprised less than 0.5% of the Company’s fixed maturity securities. In addition, as indicated on the above table, there was no significant concentration of unrealized losses in any one market sector. The $55 million of unrealized losses related to fixed maturity securities available for sale that have been in an unrealized loss position for less than one year were generally comprised of domestic and foreign corporate securities, foreign government securities, asset-backed securities as well as commercial and agency residential mortgage-backed securities. Of these unrealized losses, $39 million were related to securities that were rated investment grade by at least one nationally recognized rating agency. The $481 million of unrealized losses related to fixed maturity securities available for sale in an unrealized loss position for more than one year related primarily to domestic and foreign corporate securities as well as agency residential mortgage backed securities. Of these unrealized losses $455 million were related to securities that were rated investment grade by at least one nationally recognized rating agency. In all instances, there were no projected cash flow shortfalls to recover the full book value of the investments and the related interest obligations. The mortgage-backed securities still have excess credit coverage and are current on interest and principal payments. Based upon the Company’s current evaluation of securities in an unrealized loss position as of December 31, 2023, the unrealized losses are due to changes in interest rates and non-issuer specific credit spreads and are not credit related. In addition, the contractual terms of these securities do not permit these securities to be settled at a price less than their amortized cost.
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, 2022 By Security Type
Less than 12 monthsGreater than 12 monthsTotal
(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$290 $(14)$245 $(26)$535 $(40)
Obligations of U.S. states and political subdivisions235 (23)27 (9)261 (32)
Corporate securities2,138 (175)841 (146)2,979 (321)
Asset-backed securities3,120 (138)436 (27)3,556 (165)
Mortgage-backed securities
Commercial464 (50)36 (9)500 (59)
Agency residential852 (54)605 (113)1,456 (167)
Non-agency residential2 — 1 — 3 — 
Foreign government securities455 (36)144 (25)599 (61)
Foreign corporate securities967 (100)365 (67)1,332 (167)
Total$8,522 $(591)$2,698 $(421)$11,220 $(1,012)
Securities where an allowance for credit loss was recorded2 (1)— — 2 (1)
Total fixed maturity securities - available for sale$8,524 $(591)$2,698 $(421)$11,222 $(1,013)
(Some amounts may not reconcile due to rounding.)
Duration of Unrealized Loss at December 31, 2022 By Maturity
Less than 12 monthsGreater than 12 monthsTotal
(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$463 $(8)$29 $(4)$491 $(11)
Due in one year through five years2,020 (143)936 (107)2,956 (250)
Due in five years through ten years1,162 (148)395 (98)1,557 (246)
Due after ten years439 (50)262 (64)701 (114)
Asset-backed securities3,120 (138)436 (27)3,556 (165)
Mortgage-backed securities1,318 (105)641 (122)1,959 (226)
Total$8,522 $(591)$2,698 $(421)$11,220 $(1,012)
Securities where an allowance for credit loss was recorded2 (1)— — 2 (1)
Total fixed maturity securities - available for sale$8,524 $(591)$2,698 $(421)$11,222 $(1,013)
(Some amounts may not reconcile due to rounding.)
The aggregate fair value and gross unrealized losses related to fixed maturity securities - available for sale in an unrealized loss position at December 31, 2022 were $11.2 billion and $1.0 billion, respectively. The fair value of securities for the single issuer (the United States government) whose securities comprised the largest unrealized loss position at December 31, 2022, did not exceed 4.3% of the overall fair value of the Company’s fixed maturity securities available for sale. The fair value of the securities for the issuer with the second largest unrealized loss comprised less than 0.6% of the Company’s fixed maturity securities available for sale. In addition, as indicated on the above table, there was no significant concentration of unrealized losses in any one market sector. The $591 million of unrealized losses related to fixed maturity securities that have been in an unrealized loss position for less than one year were generally comprised of domestic and foreign corporate securities, foreign government securities, asset backed securities and agency residential mortgage backed securities. Of these unrealized losses, $520 million were related to securities that were rated investment grade by at least one nationally recognized rating agency. The $421 million of unrealized losses related to fixed maturity securities available for sale in an unrealized loss position for more than one year related primarily to domestic and foreign corporate securities as well as agency residential mortgage-backed securities. Of these unrealized
losses, $392 million were related to securities that were rated investment grade by at least one nationally recognized rating agency. In all instances, there were no projected cash flow shortfalls to recover the full book value of the investments and the related interest obligations. The mortgage-backed securities still have excess credit coverage and are current on interest and principal payments.
The components of net investment income are presented in the table below for the periods indicated:
Years Ended December 31,
(Dollars in millions)202320222021
Fixed maturities$822 $510 $344 
Equity securities3 16 15 
Short-term investments and cash74 16 1 
Other invested assets
Limited partnerships37 72 321 
Dividends from preferred shares of affiliate31 31 31 
Other59 30 63 
Gross investment income before adjustments1,027 675 774 
Funds held interest income (expense)3 6 8 
Interest income from Parent7 11 6 
Gross investment income1,038 691 788 
Investment expenses46 52 43 
Net investment income$993 $638 $745 
(Some amounts may not reconcile due to rounding.)
The Company records results from limited partnership investments on the equity method of accounting with changes in value reported through net investment income. The net investment income from limited partnerships is dependent upon the Company’s share of the net asset values of interests underlying each limited partnership. Due to the timing of receiving financial information from these partnerships, the results are generally reported on a one month or quarter lag. If the Company determines there has been a significant decline in value of a limited partnership during this lag period, a loss will be recorded in the period in which the Company identifies the decline.
The Company had contractual commitments to invest up to an additional $1.0 billion in limited partnerships and private placement loans at December 31, 2023. These commitments will be funded when called in accordance with the partnership and loan agreements, which have investment periods that expire, unless extended, through 2027.
During the fourth quarter of 2022, the Company entered into COLI policies, which are invested in debt and equity securities. The COLI policies are carried within other invested assets at the policy cash surrender value of $1.3 billion and $939 million as of December 31, 2023 and December 31, 2022, respectively.
Other invested assets, at fair value, as of December 31, 2023 and December 31, 2022, were comprised of preferred shares held in Preferred Holdings, a wholly-owned subsidiary of Group.
Variable Interest Entities
The Company is engaged with various special purpose entities and other entities that are deemed to be VIEs primarily as an investor through normal investment activities but also as an investment manager. A VIE is an entity that either has investors that lack certain essential characteristics of a controlling financial interest, such as simple majority kick-out rights, or lacks sufficient funds to finance its own activities without financial support provided by other entities. The Company performs ongoing qualitative assessments of its VIEs to determine whether the Company has a controlling financial interest in the VIE and therefore is the primary beneficiary. The Company is deemed to have a controlling financial interest when it has both the ability to direct the activities that most significantly impact the economic performance of the VIE and the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. Based on the Company’s assessment, if it determines it is the primary beneficiary, the Company consolidates the VIE in the Company’s Consolidated Financial Statements. As of December 31, 2023 and 2022, the Company did not hold any securities for which it is the primary beneficiary.
The Company, through normal investment activities, makes passive investments in general and limited partnerships and other alternative investments. For these non-consolidated VIEs, the Company has determined it is not the primary beneficiary as it has no ability to direct activities that could significantly affect the economic performance of the
investments. The Company’s maximum exposure to loss as of December 31, 2023 and 2022 is limited to the total carrying value of $3.3 billion and $2.8 billion, respectively, which are included in general and limited partnerships, COLI policies and other alternative investments in other invested assets in the Company's consolidated balance sheets.
As of December 31, 2023, the Company has outstanding commitments totaling $972 million whereby the Company is committed to fund these investments and may be called by the partnership during the commitment period to fund the purchase of new investments and partnership expenses. These investments are generally of a passive nature in that the Company does not take an active role in management.
In addition, the Company makes passive investments in structured securities issued by VIEs for which the Company is not the manager. These investments are included in asset-backed securities, which includes collateralized loan obligations and are classified as fixed maturities - available for sale. The Company has not provided financial or other support with respect to these investments other than its original investment. For these investments, the Company determined it is not the primary beneficiary due to the relative size of the Company’s investment in comparison to the principal amount of the structured securities issued by the VIEs, the level of credit subordination which reduces the Company’s obligation to absorb losses or right to receive benefits and the Company’s inability to direct the activities that most significantly impact the economic performance of the VIEs. The Company’s maximum exposure to loss on these investments is limited to the amount of the Company’s investment.
The components of net gains (losses) on investments are presented in the table below for the periods indicated:
Years Ended December 31,
(Dollars in millions)202320222021
Fixed maturity securities:
Allowances for credit losses$(1)$(27)$(26)
Net realized gains (losses) from dispositions(192)(79)8 
Gains (losses) from fair value adjustments— — — 
Equity securities:
Net realized gains (losses) from dispositions8 117 24 
Gains (losses) from fair value adjustments(4)(447)254 
Other invested assets— 13 6 
Other invested assets, fair value:
Gains (losses) from fair value adjustments9 (558)234 
Short-term investment gains (losses)— — — 
Total net gains (losses) on investments$(180)$(982)$501 
(Some amounts may not reconcile due to rounding.)
The following tables provide a roll forward of the Company’s beginning and ending balance of allowance for credit losses for the periods indicated:
Roll Forward of Allowance for Credit Losses - Fixed Maturities - Available for Sale
Twelve Months Ended December 31, 2023
Corporate
Securities		Asset-Backed
Securities		Foreign
Corporate
Securities		Total
(Dollars in millions)
Balance, beginning of period$(45)$— $(1)$(46)
Credit losses on securities where credit losses were not previously recorded
(23)— — (23)
Increases in allowance on previously impaired securities(1)— — (1)
Decreases in allowance on previously impaired securities— — — — 
Reduction in allowance due to disposals21 — 1 22 
Balance, end of period$(47)$— $— $(48)
(Some amounts may not reconcile due to rounding.)
Roll Forward of Allowance for Credit Losses - Fixed Maturities - Held to Maturity
Twelve Months Ended December 31, 2023
Corporate
Securities		Asset-Backed
Securities		Foreign
Corporate
Securities		Total
(Dollars in millions)
Balance, beginning of period$(2)$(6)$(1)$(9)
Credit losses on securities where credit losses were not previously recorded
— — — — 
Increases in allowance on previously impaired securities— — — — 
Decreases in allowance on previously impaired securities— — — — 
Reduction in allowance due to disposals— 1 — 1 
Balance, end of period$(2)$(5)$(1)$(8)
(Some amounts may not reconcile due to rounding.)
Roll Forward of Allowance for Credit Losses - Fixed Maturities - Available for Sale
Twelve Months Ended December 31, 2022
Corporate
Securities		Asset-Backed
Securities		Foreign
Corporate
Securities		Total
(Dollars in millions)
Balance, beginning of period$(19)$(8)$— $(27)
Credit losses on securities where credit losses were not previously recorded(11)— (1)(12)
Increases in allowance on previously impaired securities(20)— — (21)
Decreases in allowance on previously impaired securities— — — — 
Reduction in allowance due to disposals6 8 1 14 
Balance, end of period$(45)$— $(1)$(46)
(Some amounts may not reconcile due to rounding.)
Roll Forward of Allowance for Credit Losses - Fixed Maturities - Held to Maturity
Twelve Months Ended December 31, 2022
Corporate
Securities		Asset-Backed
Securities		Foreign
Corporate
Securities		Total
(Dollars in millions)
Balance, beginning of period$— $— $— $— 
Credit losses on securities where credit losses were not previously recorded(2)(6)(1)(9)
Increases in allowance on previously impaired securities— — — — 
Decreases in allowance on previously impaired securities— — — — 
Reduction in allowance due to disposals— — — — 
Balance, end of period$(2)$(6)$(1)$(9)
(Some amounts may not reconcile due to rounding.)
The proceeds and split between gross gains and losses from sales of fixed maturity securities - available for sale and equity securities, are presented in the table below for the periods indicated:
Years Ended December 31,
(Dollars in millions)202320222021
Proceeds from sales of fixed maturity securities - available for sale$2,546 $2,645 $961 
Gross gains from dispositions12 9 33 
Gross losses from dispositions(204)(88)(24)
Proceeds from sales of equity securities$126 $2,203 $862 
Gross gains from dispositions8 165 39 
Gross losses from dispositions— (48)(15)
Securities with a carrying value amount of $1.4 billion at December 31, 2023, were on deposit with or regulated by various state or governmental insurance departments in compliance with insurance laws. See Note 10.