QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification Number) | |
(Address of principal executive offices) |
(Zip Code) |
Title of Each Class |
Trading Symbol |
Name of each exchange on which registered | ||
☒ | Accelerated filer | ☐ | ||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||
Emerging growth company |
TABLE OF CONTENTS
Page | ||||||
PART I—FINANCIAL INFORMATION |
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Item 1. |
Financial Statements | |||||
Condensed Consolidated Balance Sheets as of March 31, 2025 (Unaudited) and December 31, 2024 |
3 | |||||
4 | ||||||
5 | ||||||
6 | ||||||
7 | ||||||
Notes to Condensed Consolidated Financial Statements (Unaudited) |
8 | |||||
8 | ||||||
9 | ||||||
10 | ||||||
11 | ||||||
25 | ||||||
30 | ||||||
49 | ||||||
50 | ||||||
55 | ||||||
58 | ||||||
59 | ||||||
60 | ||||||
61 | ||||||
62 | ||||||
62 | ||||||
65 | ||||||
Note 17 — Changes in Accumulated Other Comprehensive Income (Loss) |
71 | |||||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
73 | ||||
Item 3. | 110 | |||||
Item 4. | 110 | |||||
PART II—OTHER INFORMATION |
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Item 1. | 111 | |||||
Item 1A. | 111 | |||||
Item 2. | 111 | |||||
Item 5. | 111 | |||||
Item 6. | 112 | |||||
Signatures | 113 |
2
Item 1. |
Financial Statements |
March 31, 2025 |
December 31, 2024 |
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(Unaudited) |
||||||||
Assets |
||||||||
Investments: |
||||||||
Fixed maturity securities available-for-sale, at fair value (amortized cost of $ |
$ | $ | ||||||
Equity securities, at fair value |
||||||||
Commercial mortgage loans |
||||||||
Less: Allowance for credit losses |
( |
) | ( |
) | ||||
Commercial mortgage loans, net |
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Policy loans |
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Limited partnerships |
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Other invested assets |
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Total investments |
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Cash, cash equivalents and restricted cash |
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Accrued investment income |
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Deferred acquisition costs |
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Intangible assets |
||||||||
Reinsurance recoverable |
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Less: Allowance for credit losses |
( |
) | ( |
) | ||||
Reinsurance recoverable, net |
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Other assets |
||||||||
Deferred tax asset |
||||||||
Market risk benefit assets |
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Separate account assets |
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Total assets |
$ | $ | ||||||
Liabilities and equity |
||||||||
Liabilities: |
||||||||
Future policy benefits |
$ | $ | ||||||
Policyholder account balances |
||||||||
Market risk benefit liabilities |
||||||||
Liability for policy and contract claims |
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Unearned premiums |
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Other liabilities |
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Long-term borrowings |
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Separate account liabilities |
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Liabilities related to discontinued operations |
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Total liabilities |
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Commitments and contingencies (Note 16) |
||||||||
Equity: |
||||||||
Common stock, $ |
||||||||
Additional paid-in capital |
||||||||
Accumulated other comprehensive income (loss) |
( |
) | ( |
) | ||||
Retained earnings |
||||||||
Treasury stock, at cost ( |
( |
) | ( |
) | ||||
Total Genworth Financial, Inc.’s stockholders’ equity |
||||||||
Noncontrolling interests |
||||||||
Total equity |
||||||||
Total liabilities and equity |
$ | $ | ||||||
Three months ended March 31, |
||||||||
2025 |
2024 |
|||||||
Revenues: |
||||||||
Premiums |
$ | $ | ||||||
Net investment income |
||||||||
Net investment gains (losses) |
||||||||
Policy fees and other income |
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Total revenues |
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Benefits and expenses: |
||||||||
Benefits and other changes in policy reserves |
||||||||
Liability remeasurement (gains) losses |
( |
) | ||||||
Changes in fair value of market risk benefits and associated hedges |
( |
) | ||||||
Interest credited |
||||||||
Acquisition and operating expenses, net of deferrals |
||||||||
Amortization of deferred acquisition costs and intangibles |
||||||||
Interest expense |
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Total benefits and expenses |
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Income from continuing operations before income taxes |
||||||||
Provision for income taxes |
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Income from continuing operations |
||||||||
Loss from discontinued operations, net of taxes |
( |
) | ( |
) | ||||
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|
|||||
Net income |
||||||||
Less: net income attributable to noncontrolling interests |
||||||||
|
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|
|||||
Net income available to Genworth Financial, Inc.’s common stockholders |
$ | $ | ||||||
|
|
|
|
|||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders per share: |
||||||||
Basic |
$ | $ | ||||||
|
|
|
|
|||||
Diluted |
$ | $ | ||||||
|
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|
|||||
Net income available to Genworth Financial, Inc.’s common stockholders per share: |
||||||||
Basic |
$ | $ | ||||||
|
|
|
|
|||||
Diluted |
$ | $ | ||||||
|
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|
|||||
Weighted-average common shares outstanding: |
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Basic |
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|
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Diluted |
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|
|
Three months ended March 31, |
||||||||
2025 |
2024 |
|||||||
Net income |
$ | $ | ||||||
Other comprehensive income (loss), net of taxes: |
||||||||
Net unrealized gains (losses) on securities without an allowance for credit losses |
( |
) | ||||||
Net unrealized gains (losses) on securities with an allowance for credit losses |
||||||||
Derivatives qualifying as hedges |
( |
) | ||||||
Change in the discount rate used to measure future policy benefits |
( |
) | ||||||
Change in instrument-specific credit risk of market risk benefits |
( |
) | ||||||
Foreign currency translation and other adjustments |
||||||||
|
|
|
|
|||||
Total other comprehensive income |
||||||||
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|
|
|||||
Total comprehensive income |
||||||||
Less: comprehensive income attributable to noncontrolling interests |
||||||||
|
|
|
|
|||||
Total comprehensive income available to Genworth Financial, Inc.’s common stockholders |
$ | $ | ||||||
|
|
|
|
Three months ended March 31, 2025 |
||||||||||||||||||||||||||||||||
Common stock |
Additional paid-in capital |
Accumulated other comprehensive income (loss) |
Retained earnings |
Treasury stock, at cost |
Total Genworth Financial, Inc.’s stockholders’ equity |
Noncontrolling interests |
Total equity |
|||||||||||||||||||||||||
Balances as of December 31, 2024 |
$ | $ | $ | ( |
) | $ | $ | ( |
) | $ | $ | $ | ||||||||||||||||||||
Repurchase of subsidiary shares |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Comprehensive income: |
||||||||||||||||||||||||||||||||
Net income |
||||||||||||||||||||||||||||||||
Other comprehensive income, net of taxes |
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Total comprehensive income |
||||||||||||||||||||||||||||||||
Treasury stock acquired in connection with share repurchases |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Dividends to noncontrolling interests |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Stock-based compensation expense and exercises and other |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
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|
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|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balances as of March 31, 2025 |
$ | $ | $ | ( |
) | $ | $ | ( |
) | $ | $ | $ | ||||||||||||||||||||
|
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|
|
|
|
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|
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|
|
|
|
|
|
|||||||||||||||||
Three months ended March 31, 2024 |
||||||||||||||||||||||||||||||||
Common stock |
Additional paid-in capital |
Accumulated other comprehensive income (loss) |
Retained earnings |
Treasury stock, at cost |
Total Genworth Financial, Inc.’s stockholders’ equity |
Noncontrolling interests |
Total equity |
|||||||||||||||||||||||||
Balances as of December 31, 2023 |
$ | $ | $ | ( |
) | $ | $ | ( |
) | $ | $ | $ | ||||||||||||||||||||
Repurchase of subsidiary shares |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Comprehensive income (loss): |
||||||||||||||||||||||||||||||||
Net income |
||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of taxes |
( |
) | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total comprehensive income |
||||||||||||||||||||||||||||||||
Treasury stock acquired in connection with share repurchases |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Dividends to noncontrolling interests |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Stock-based compensation expense and exercises and other |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balances as of March 31, 2024 |
$ | $ | $ | ( |
) | $ | $ | ( |
) | $ | $ | $ | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, |
||||||||
2025 |
2024 |
|||||||
Cash flows from (used by) operating activities: |
||||||||
Net income |
$ | $ | ||||||
Less loss from discontinued operations, net of taxes |
||||||||
Adjustments to reconcile net income to net cash from (used by) operating activities: |
||||||||
Amortization of fixed maturity securities discounts and premiums |
( |
) | ( |
) | ||||
Net investment (gains) losses |
( |
) | ( |
) | ||||
Changes in fair value of market risk benefits and associated hedges |
( |
) | ||||||
Charges assessed to policyholders |
( |
) | ( |
) | ||||
Amortization of deferred acquisition costs and intangibles |
||||||||
Deferred income taxes |
( |
) | ||||||
Derivative instruments, limited partnerships and other |
( |
) | ( |
) | ||||
Long-term incentive compensation expense |
||||||||
Change in certain assets and liabilities: |
||||||||
Accrued investment income and other assets |
( |
) | ( |
) | ||||
Insurance reserves |
||||||||
Current tax liabilities |
||||||||
Other liabilities, policy and contract claims and other policy-related balances |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net cash from (used by) operating activities |
( |
) | ||||||
|
|
|
|
|||||
Cash flows from (used by) investing activities: |
||||||||
Proceeds from maturities and repayments of investments: |
||||||||
Fixed maturity securities |
||||||||
Commercial mortgage loans |
||||||||
Limited partnerships and other invested assets |
||||||||
Proceeds from sales of investments: |
||||||||
Fixed maturity and equity securities |
||||||||
Purchases and originations of investments: |
||||||||
Fixed maturity and equity securities |
( |
) | ( |
) | ||||
Commercial mortgage loans |
( |
) | ( |
) | ||||
Limited partnerships and other invested assets |
( |
) | ( |
) | ||||
Short-term investments, net |
||||||||
Policy loans, net |
||||||||
Other |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net cash from (used by) investing activities |
( |
) | ||||||
|
|
|
|
|||||
Cash flows from (used by) financing activities: |
||||||||
Deposits to universal life and investment contracts |
||||||||
Withdrawals from universal life and investment contracts |
( |
) | ( |
) | ||||
Repayment and repurchase of long-term debt |
( |
) | ||||||
Repurchase of subsidiary shares |
( |
) | ( |
) | ||||
Treasury stock acquired in connection with share repurchases |
( |
) | ( |
) | ||||
Dividends paid to noncontrolling interests |
( |
) | ( |
) | ||||
Other, net |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net cash used by financing activities |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net change in cash, cash equivalents and restricted cash |
( |
) | ( |
) | ||||
Cash, cash equivalents and restricted cash at beginning of period |
||||||||
|
|
|
|
|||||
Cash, cash equivalents and restricted cash at end of period |
$ | $ | ||||||
|
|
|
|
• | Enact |
• | Long-Term Care Insurance. |
• | Life and Annuities. |
Three months ended March 31, |
||||||||
(Amounts in millions, except per share amounts) |
2025 |
2024 |
||||||
Weighted-average common shares used in basic earnings per share calculations |
||||||||
Potentially dilutive securities: |
||||||||
Performance stock units, restricted stock units and other equity-based awards |
||||||||
Weighted-average common shares used in diluted earnings per share calculations |
||||||||
Income from continuing operations: |
||||||||
Income from continuing operations |
$ | $ | ||||||
Less: net income from continuing operations attributable to noncontrolling interests |
||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders |
$ | $ | ||||||
Basic per share |
$ | $ | ||||||
Diluted per share |
$ | $ | ||||||
Loss from discontinued operations: |
||||||||
Loss from discontinued operations, net of taxes |
$ | ( |
) | $ | ( |
) | ||
Basic per share |
$ | ( |
) | $ | ||||
Diluted per share |
$ | ( |
) | $ | ||||
Net income: |
||||||||
Income from continuing operations |
$ | $ | ||||||
Loss from discontinued operations, net of taxes |
( |
) | ( |
) | ||||
Net income |
||||||||
Less: net income attributable to noncontrolling interests |
||||||||
Net income available to Genworth Financial, Inc.’s common stockholders |
$ | $ | ||||||
Basic per share (1) |
$ | $ | ||||||
Diluted per share |
$ | $ | ||||||
(1) |
May not total due to whole number calculation. |
Three months ended March 31, |
||||||||
(Amounts in millions) |
2025 |
2024 |
||||||
Fixed maturity securities—taxable |
$ | $ | ||||||
Fixed maturity securities—non-taxable |
||||||||
Equity securities |
||||||||
Commercial mortgage loans |
||||||||
Policy loans |
||||||||
Limited partnerships |
||||||||
Other invested assets (1) |
||||||||
Cash, cash equivalents, restricted cash and short-term investments |
||||||||
Gross investment income before expenses and fees |
||||||||
Expenses and fees |
( |
) | ( |
) | ||||
Net investment income |
$ | $ | ||||||
(1) |
Includes amounts related to derivative instruments. See note 5 for additional information. |
Three months ended March 31, |
||||||||
(Amounts in millions) |
2025 |
2024 |
||||||
Realized investment gains (losses): |
||||||||
Available-for-sale fixed maturity securities: |
||||||||
Realized gains |
$ | $ | ||||||
Realized losses |
( |
) | ( |
) | ||||
Net realized gains (losses) on available-for-sale fixed maturity securities |
( |
) | ( |
) | ||||
Net realized gains (losses) on equity securities sold |
||||||||
Total net realized investment gains (losses) |
( |
) | ( |
) | ||||
Net change in allowance for credit losses on available-for-sale fixed maturity securities |
( |
) | ||||||
Net unrealized gains (losses) on equity securities still held |
( |
) | ||||||
Net unrealized gains (losses) on limited partnerships |
||||||||
Commercial mortgage loans |
( |
) | ||||||
Derivative instruments (1) |
||||||||
Other |
( |
) | ||||||
Net investment gains (losses) |
$ | $ | ||||||
(1) |
See note 5 for additional information on the impact of derivative instruments included in net investment gains (losses). |
(Amounts in millions) |
Beginning balance |
Increase from securities without allowance in previous periods |
Increase (decrease) from securities with allowance in previous periods |
Securities sold |
Decrease due to change in intent or requirement to sell |
Write-offs |
Recoveries |
Ending balance |
||||||||||||||||||||||||
Fixed maturity securities: |
|
|||||||||||||||||||||||||||||||
U.S. corporate |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Non-U.S. corporate |
||||||||||||||||||||||||||||||||
Commercial mortgage-backed |
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|
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|
|
|
|
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|
|
|
|
|
|
|
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|
|||||||||||||||||
Total available-for-sale fixed maturity securities |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in millions) |
Beginning balance |
Increase from securities without allowance in previous periods |
Increase (decrease) from securities with allowance in previous periods |
Securities sold |
Decrease due to change in intent or requirement to sell |
Write-offs |
Recoveries |
Ending balance |
||||||||||||||||||||||||
Fixed maturity securities: |
||||||||||||||||||||||||||||||||
Commercial mortgage-backed |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total available-for-sale fixed maturity securities |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in millions) |
March 31, 2025 |
December 31, 2024 |
||||||
Net unrealized gains (losses) on fixed maturity securities without an allowance for credit losses |
$ | ( |
) | $ | ( |
) | ||
Net unrealized gains (losses) on fixed maturity securities with an allowance for credit losses |
( |
) | ( |
) | ||||
Adjustments to policyholder contract balances |
||||||||
Income taxes, net |
||||||||
|
|
|
|
|||||
Net unrealized investment gains (losses) |
( |
) | ( |
) | ||||
Less: net unrealized investment gains (losses) attributable to noncontrolling interests |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net unrealized investment gains (losses) attributable to Genworth Financial, Inc. |
$ | ( |
) | $ | ( |
) | ||
|
|
|
|
(Amounts in millions) |
2025 |
2024 |
||||||
Beginning balance |
$ | ( |
) | $ | ( |
) | ||
Unrealized gains (losses) arising during the period: |
||||||||
Unrealized gains (losses) on fixed maturity securities |
( |
) | ||||||
Adjustments to policyholder contract balances |
( |
) | ||||||
Provision for income taxes |
( |
) | ||||||
|
|
|
|
|||||
Change in unrealized gains (losses) on investment securities |
( |
) | ||||||
Reclassification adjustments to net investment (gains) losses (1) |
||||||||
|
|
|
|
|||||
Change in net unrealized investment gains (losses) |
( |
) | ||||||
Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests |
( |
) | ||||||
|
|
|
|
|||||
Ending balance |
$ | ( |
) | $ | ( |
) | ||
|
|
|
|
(1) |
Net of taxes of $( |
(Amounts in millions) |
Amortized cost |
Gross unrealized gains |
Gross unrealized losses |
Allowance for credit losses |
Fair value |
|||||||||||||||
Fixed maturity securities: |
||||||||||||||||||||
U.S. government, agencies and government-sponsored enterprises |
$ | $ | $ | ( |
) | $ | $ | |||||||||||||
State and political subdivisions |
( |
) | ||||||||||||||||||
Non-U.S. government |
( |
) | ||||||||||||||||||
U.S. corporate: |
||||||||||||||||||||
Utilities |
( |
) | ||||||||||||||||||
Energy |
( |
) | ||||||||||||||||||
Finance and insurance |
( |
) | ( |
) | ||||||||||||||||
Consumer—non-cyclical |
( |
) | ||||||||||||||||||
Technology and communications |
( |
) | ||||||||||||||||||
Industrial |
( |
) | ||||||||||||||||||
Capital goods |
( |
) | ||||||||||||||||||
Consumer—cyclical |
( |
) | ( |
) | ||||||||||||||||
Transportation |
( |
) | ||||||||||||||||||
Other |
( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total U.S. corporate |
( |
) | ( |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Non-U.S. corporate: |
||||||||||||||||||||
Utilities |
( |
) | ( |
) | ||||||||||||||||
Energy |
( |
) | ||||||||||||||||||
Finance and insurance |
( |
) | ||||||||||||||||||
Consumer—non-cyclical |
( |
) | ||||||||||||||||||
Technology and communications |
( |
) | ||||||||||||||||||
Industrial |
( |
) | ||||||||||||||||||
Capital goods |
( |
) | ||||||||||||||||||
Consumer—cyclical |
( |
) | ||||||||||||||||||
Transportation |
( |
) | ||||||||||||||||||
Other |
( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total non-U.S. corporate |
( |
) | ( |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Residential mortgage-backed |
( |
) | ||||||||||||||||||
Commercial mortgage-backed |
( |
) | ( |
) | ||||||||||||||||
Other asset-backed |
( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total available-for-sale fixed maturity securities |
$ | $ | $ | ( |
) | $ | ( |
) | $ | |||||||||||
|
|
|
|
|
|
|
|
|
|
(Amounts in millions) |
Amortized cost |
Gross unrealized gains |
Gross unrealized losses |
Allowance for credit losses |
Fair value |
|||||||||||||||
Fixed maturity securities: |
||||||||||||||||||||
U.S. government, agencies and government-sponsored enterprises |
$ | $ | $ | ( |
) | $ | $ | |||||||||||||
State and political subdivisions |
( |
) | ||||||||||||||||||
Non-U.S. government |
( |
) | ||||||||||||||||||
U.S. corporate: |
||||||||||||||||||||
Utilities |
( |
) | ||||||||||||||||||
Energy |
( |
) | ||||||||||||||||||
Finance and insurance |
( |
) | ( |
) | ||||||||||||||||
Consumer—non-cyclical |
( |
) | ||||||||||||||||||
Technology and communications |
( |
) | ||||||||||||||||||
Industrial |
( |
) | ||||||||||||||||||
Capital goods |
( |
) | ||||||||||||||||||
Consumer—cyclical |
( |
) | ||||||||||||||||||
Transportation |
( |
) | ||||||||||||||||||
Other |
( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total U.S. corporate |
( |
) | ( |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Non-U.S. corporate: |
||||||||||||||||||||
Utilities |
( |
) | ( |
) | ||||||||||||||||
Energy |
( |
) | ||||||||||||||||||
Finance and insurance |
( |
) | ||||||||||||||||||
Consumer—non-cyclical |
( |
) | ||||||||||||||||||
Technology and communications |
( |
) | ||||||||||||||||||
Industrial |
( |
) | ||||||||||||||||||
Capital goods |
( |
) | ||||||||||||||||||
Consumer—cyclical |
( |
) | ||||||||||||||||||
Transportation |
( |
) | ||||||||||||||||||
Other |
( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total non-U.S. corporate |
( |
) | ( |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Residential mortgage-backed |
( |
) | ||||||||||||||||||
Commercial mortgage-backed |
( |
) | ( |
) | ||||||||||||||||
Other asset-backed |
( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total available-for-sale fixed maturity securities |
$ | $ | $ | ( |
) | $ | ( |
) | $ | |||||||||||
|
|
|
|
|
|
|
|
|
|
Less than 12 months |
12 months or more |
Total |
||||||||||||||||||||||||||||||||||
(Dollar amounts in millions) |
Fair value |
Gross unrealized losses |
Number of securities |
Fair value |
Gross unrealized losses |
Number of securities |
Fair value |
Gross unrealized losses |
Number of securities |
|||||||||||||||||||||||||||
Description of Securities |
||||||||||||||||||||||||||||||||||||
Fixed maturity securities: |
||||||||||||||||||||||||||||||||||||
U.S. government, agencies and government-sponsored enterprises |
$ | $ | ( |
) | $ | $ | ( |
) | $ | $ | ( |
) | ||||||||||||||||||||||||
State and political subdivisions |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Non-U.S. government |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
U.S. corporate |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Non-U.S. corporate |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Residential mortgage-backed |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Commercial mortgage-backed |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Other asset-backed |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Total for fixed maturity securities in an unrealized loss position |
$ | $ | ( |
) | $ | $ | ( |
) | $ | $ | ( |
) | ||||||||||||||||||||||||
% Below cost: |
||||||||||||||||||||||||||||||||||||
<20% Below cost |
$ | $ | ( |
) | $ | $ | ( |
) | $ | $ | ( |
) | ||||||||||||||||||||||||
20%-50% Below cost |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Total for fixed maturity securities in an unrealized loss position |
$ | $ | ( |
) | $ | $ | ( |
) | $ | $ | ( |
) | ||||||||||||||||||||||||
Investment grade |
$ | $ | ( |
) | $ | $ | ( |
) | $ | $ | ( |
) | ||||||||||||||||||||||||
Below investment grade |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Total for fixed maturity securities in an unrealized loss position |
$ | $ | ( |
) | $ | $ | ( |
) | $ | $ | ( |
) | ||||||||||||||||||||||||
Less than 12 months |
12 months or more |
Total |
||||||||||||||||||||||||||||||||||
(Dollar amounts in millions) |
Fair value |
Gross unrealized losses |
Number of securities |
Fair value |
Gross unrealized losses |
Number of securities |
Fair value |
Gross unrealized losses |
Number of securities |
|||||||||||||||||||||||||||
Description of Securities |
||||||||||||||||||||||||||||||||||||
U.S. corporate: |
||||||||||||||||||||||||||||||||||||
Utilities |
$ | $ | ( |
) | $ | $ | ( |
) | $ | $ | ( |
) | ||||||||||||||||||||||||
Energy |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Finance and insurance |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Consumer—non-cyclical |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Technology and communications |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Industrial |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Capital goods |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Consumer—cyclical |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Transportation |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Other |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Subtotal, U.S. corporate securities |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Non-U.S. corporate: |
||||||||||||||||||||||||||||||||||||
Utilities |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Energy |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Finance and insurance |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Consumer—non-cyclical |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Technology and communications |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Industrial |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Capital goods |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Consumer—cyclical |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Transportation |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Other |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Subtotal, non-U.S. corporate securities |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Total for corporate securities in an unrealized loss position |
$ | $ | ( |
) | $ | $ | ( |
) | $ | $ | ( |
) | ||||||||||||||||||||||||
Less than 12 months |
12 months or more |
Total |
||||||||||||||||||||||||||||||||||
(Dollar amounts in millions) |
Fair value |
Gross unrealized losses |
Number of securities |
Fair value |
Gross unrealized losses |
Number of securities |
Fair value |
Gross unrealized losses |
Number of securities |
|||||||||||||||||||||||||||
Description of Securities |
||||||||||||||||||||||||||||||||||||
Fixed maturity securities: |
||||||||||||||||||||||||||||||||||||
U.S. government, agencies and government-sponsored enterprises |
$ | $ | ( |
) | $ | $ | ( |
) | $ | $ | ( |
) | ||||||||||||||||||||||||
State and political subdivisions |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Non-U.S. government |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
U.S. corporate |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Non-U.S. corporate |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Residential mortgage-backed |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Commercial mortgage-backed |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Other asset-backed |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Total for fixed maturity securities in an unrealized loss position |
$ | $ | ( |
) | $ | $ | ( |
) | $ | $ | ( |
) | ||||||||||||||||||||||||
% Below cost: |
||||||||||||||||||||||||||||||||||||
<20% Below cost |
$ | $ | ( |
) | $ | $ | ( |
) | $ | $ | ( |
) | ||||||||||||||||||||||||
20%-50% Below cost |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
>50% Below cost |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Total for fixed maturity securities in an unrealized loss position |
$ | $ | ( |
) | $ | $ | ( |
) | $ | $ | ( |
) | ||||||||||||||||||||||||
Investment grade |
$ | $ | ( |
) | $ | $ | ( |
) | $ | $ | ( |
) | ||||||||||||||||||||||||
Below investment grade |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Total for fixed maturity securities in an unrealized loss position |
$ | $ | ( |
) | $ | $ | ( |
) | $ | $ | ( |
) | ||||||||||||||||||||||||
Less than 12 months |
12 months or more |
Total |
||||||||||||||||||||||||||||||||||
(Dollar amounts in millions) |
Fair value |
Gross unrealized losses |
Number of securities |
Fair value |
Gross unrealized losses |
Number of securities |
Fair value |
Gross unrealized losses |
Number of securities |
|||||||||||||||||||||||||||
Description of Securities |
||||||||||||||||||||||||||||||||||||
U.S. corporate: |
||||||||||||||||||||||||||||||||||||
Utilities |
$ | $ | ( |
) | $ | $ | ( |
) | $ | $ | ( |
) | ||||||||||||||||||||||||
Energy |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Finance and insurance |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Consumer—non-cyclical |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Technology and communications |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Industrial |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Capital goods |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Consumer—cyclical |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Transportation |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Other |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Subtotal, U.S. corporate securities |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Non-U.S. corporate: |
||||||||||||||||||||||||||||||||||||
Utilities |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Energy |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Finance and insurance |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Consumer—non-cyclical |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Technology and communications |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Industrial |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Capital goods |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Consumer—cyclical |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Transportation |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Other |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Subtotal, non-U.S. corporate securities |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Total for corporate securities in an unrealized loss position |
$ | $ | ( |
) | $ | $ | ( |
) | $ | $ | ( |
) | ||||||||||||||||||||||||
(Amounts in millions) |
Amortized cost |
Fair value |
||||||
Due one year or less |
$ | $ | ||||||
Due after one year through five years |
||||||||
Due after five years through ten years |
||||||||
Due after ten years |
||||||||
Subtotal |
||||||||
Residential mortgage-backed |
||||||||
Commercial mortgage-backed |
||||||||
Other asset-backed |
||||||||
Total |
$ | $ | ||||||
March 31, 2025 |
December 31, 2024 |
|||||||||||||||
(Amounts in millions) |
Carrying value |
% of total |
Carrying value |
% of total |
||||||||||||
Property type: |
||||||||||||||||
Retail |
$ | % | $ | % | ||||||||||||
Office |
||||||||||||||||
Industrial |
||||||||||||||||
Apartments |
||||||||||||||||
Mixed use |
||||||||||||||||
Other |
||||||||||||||||
Subtotal |
% | % | ||||||||||||||
Allowance for credit losses |
( |
) | ( |
) | ||||||||||||
Total |
$ | $ | ||||||||||||||
March 31, 2025 |
December 31, 2024 |
|||||||||||||||
(Amounts in millions) |
Carrying value |
% of total |
Carrying value |
% of total |
||||||||||||
Geographic region: |
||||||||||||||||
South Atlantic |
$ | % | $ | % | ||||||||||||
Pacific |
||||||||||||||||
Mountain |
||||||||||||||||
Middle Atlantic |
||||||||||||||||
West South Central |
||||||||||||||||
East North Central |
||||||||||||||||
West North Central |
||||||||||||||||
East South Central |
||||||||||||||||
New England |
||||||||||||||||
Subtotal |
% | % | ||||||||||||||
Allowance for credit losses |
( |
) | ( |
) | ||||||||||||
Total |
$ | $ | ||||||||||||||
Three months ended March 31, |
||||||||
(Amounts in millions) |
2025 |
2024 |
||||||
Allowance for credit losses: |
||||||||
Beginning balance |
$ | $ | ||||||
Provision |
( |
) | ||||||
Write-offs |
||||||||
Recoveries |
||||||||
Ending balance |
$ | $ | ||||||
(Amounts in millions) |
2025 |
2024 |
2023 |
2022 |
2021 |
2020 and prior |
Total |
|||||||||||||||||||||
Debt-to-value: |
||||||||||||||||||||||||||||
0% - 50% |
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
51% - 60% |
||||||||||||||||||||||||||||
61% - 75% |
||||||||||||||||||||||||||||
76% - 100% |
||||||||||||||||||||||||||||
Greater than 100% |
||||||||||||||||||||||||||||
Total amortized cost |
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
Debt service coverage ratio: |
||||||||||||||||||||||||||||
Less than 1.00 |
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
1.00 - 1.25 |
||||||||||||||||||||||||||||
1.26 - 1.50 |
||||||||||||||||||||||||||||
1.51 - 2.00 |
||||||||||||||||||||||||||||
Greater than 2.00 |
||||||||||||||||||||||||||||
Total amortized cost |
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
March 31, 2025 |
||||||||||||||||||||||||
(Amounts in millions) |
0% - 50% |
51% - 60% |
61% - 75% |
76% - 100% |
Greater than 100% |
Total |
||||||||||||||||||
Property type: |
||||||||||||||||||||||||
Retail |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Office |
||||||||||||||||||||||||
Industrial |
||||||||||||||||||||||||
Apartments |
||||||||||||||||||||||||
Mixed use |
||||||||||||||||||||||||
Other |
||||||||||||||||||||||||
Total amortized cost |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
% of total |
% | % | % | % | % | % | ||||||||||||||||||
Weighted-average debt service coverage ratio |
||||||||||||||||||||||||
December 31, 2024 |
||||||||||||||||||||||||
(Amounts in millions) |
0% - 50% |
51% - 60% |
61% - 75% |
76% - 100% |
Greater than 100% |
Total |
||||||||||||||||||
Property type: |
||||||||||||||||||||||||
Retail |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Office |
||||||||||||||||||||||||
Industrial |
||||||||||||||||||||||||
Apartments |
||||||||||||||||||||||||
Mixed use |
||||||||||||||||||||||||
Other |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total amortized cost |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
% of total |
% | % | % | % | % | % | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Weighted-average debt service coverage ratio |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2025 |
||||||||||||||||||||||||
(Amounts in millions) |
Less than 1.00 |
1.00 - 1.25 |
1.26 - 1.50 |
1.51 - 2.00 |
Greater than 2.00 |
Total |
||||||||||||||||||
Property type: |
||||||||||||||||||||||||
Retail |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Office |
||||||||||||||||||||||||
Industrial |
||||||||||||||||||||||||
Apartments |
||||||||||||||||||||||||
Mixed use |
||||||||||||||||||||||||
Other |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total amortized cost |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
% of total |
% | % | % | % | % | % | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Weighted-average debt-to-value |
% | % | % | % | % | % | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2024 |
||||||||||||||||||||||||
(Amounts in millions) |
Less than 1.00 |
1.00 - 1.25 |
1.26 - 1.50 |
1.51 - 2.00 |
Greater than 2.00 |
Total |
||||||||||||||||||
Property type: |
||||||||||||||||||||||||
Retail |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Office |
||||||||||||||||||||||||
Industrial |
||||||||||||||||||||||||
Apartments |
||||||||||||||||||||||||
Mixed use |
||||||||||||||||||||||||
Other |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total amortized cost |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
% of total |
% | % | % | % | % | % | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Weighted-average debt-to-value |
% | % | % | % | % | % | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Derivative assets |
Derivative liabilities |
|||||||||||||||||||
Fair value |
Fair value |
|||||||||||||||||||
(Amounts in millions) |
Balance sheet classification |
March 31, 2025 |
December 31, 2024 |
Balance sheet classification |
March 31, 2025 |
December 31, 2024 |
||||||||||||||
Derivatives designated as hedges |
||||||||||||||||||||
Cash flow hedges: |
||||||||||||||||||||
Interest rate swaps |
Other invested assets | $ | $ | Other liabilities | $ | $ | ||||||||||||||
Foreign currency swaps |
Other invested assets | Other liabilities | ||||||||||||||||||
Forward bond purchase commitments |
Other invested assets | Other liabilities | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total cash flow hedges |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total derivatives designated as hedges |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Derivatives not designated as hedges |
||||||||||||||||||||
Equity index options |
Other invested assets | Other liabilities | ||||||||||||||||||
Financial futures (1) |
Other invested assets | Other liabilities | ||||||||||||||||||
Forward bond purchase commitments |
Other invested assets | Other liabilities | ||||||||||||||||||
Foreign currency forward contracts |
Other invested assets | Other liabilities | ||||||||||||||||||
Fixed indexed annuity embedded derivatives |
Other assets | Policyholder account balances (2) |
||||||||||||||||||
Indexed universal life embedded derivatives |
Reinsurance recoverable | Policyholder account balances (3) |
||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total derivatives not designated as hedges |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total derivatives |
$ | $ | $ | $ | ||||||||||||||||
|
|
|
|
|
|
|
|
(1) |
The period end valuations of financial futures were zero as a result of settling the margins on these contracts on a daily basis. |
(2) |
Represents the embedded derivatives associated with our fixed indexed annuity liabilities. |
(3) |
Represents the embedded derivatives associated with our indexed universal life liabilities. |
December 31, |
Maturities/ |
March 31, |
||||||||||||||||
(Notional in millions) |
Measurement |
2024 |
Additions |
terminations |
2025 |
|||||||||||||
Derivatives designated as hedges |
||||||||||||||||||
Cash flow hedges: |
||||||||||||||||||
Interest rate swaps |
Notional | $ | $ | $ | ( |
) | $ | |||||||||||
Foreign currency swaps |
Notional | |||||||||||||||||
Forward bond purchase commitments |
Notional | |||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Total cash flow hedges |
( |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Total derivatives designated as hedges |
( |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Derivatives not designated as hedges |
||||||||||||||||||
Equity index options |
Notional | ( |
) | |||||||||||||||
Financial futures |
Notional | ( |
) | |||||||||||||||
Forward bond purchase commitments |
Notional | |||||||||||||||||
Foreign currency forward contracts |
Notional | |||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Total derivatives not designated as hedges |
( |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Total derivatives |
$ | $ | $ | ( |
) | $ | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
December 31, |
Maturities/ |
March 31, |
||||||||||||||||
(Number of policies) |
Measurement |
2024 |
Additions |
terminations |
2025 |
|||||||||||||
Derivatives not designated as hedges |
||||||||||||||||||
Fixed indexed annuity embedded derivatives |
Policies | ( |
) | |||||||||||||||
Indexed universal life embedded derivatives |
Policies | ( |
) |
(Amounts in millions) |
Gain (loss) recognized in OCI |
Gain (loss) reclassified into net income from OCI |
Classification of gain (loss) reclassified into net income |
Gain (loss) recognized in net income |
Classification of gain (loss) recognized in net income | |||||||||||
Interest rate swaps hedging assets |
$ | $ | Net investment income | $ | Net investment gains (losses) | |||||||||||
Interest rate swaps hedging assets |
Net investment gains (losses) | Net investment gains (losses) | ||||||||||||||
Interest rate swaps hedging liabilities |
( |
) | Interest expense | Net investment gains (losses) | ||||||||||||
Foreign currency swaps |
( |
) | Net investment income | Net investment gains (losses) | ||||||||||||
Forward bond purchase commitments |
Net investment gains (losses) | Net investment gains (losses) | ||||||||||||||
Total |
$ | $ | $ | |||||||||||||
(Amounts in millions) |
Gain (loss) recognized in OCI |
Gain (loss) reclassified into net income from OCI |
Classification of gain (loss) reclassified into net income |
Gain (loss) recognized in net income |
Classification of gain (loss) recognized in net income | |||||||||||
Interest rate swaps hedging assets |
$ | ( |
) | $ | Net investment income | $ | Net investment gains (losses) | |||||||||
Interest rate swaps hedging assets |
Net investment gains (losses) | Net investment gains (losses) | ||||||||||||||
Interest rate swaps hedging liabilities |
( |
) | Interest expense | Net investment gains (losses) | ||||||||||||
Foreign currency swaps |
Net investment income | Net investment gains (losses) | ||||||||||||||
Forward bond purchase commitments |
( |
) | Net investment gains (losses) | Net investment gains (losses) | ||||||||||||
Total |
$ | ( |
) | $ | $ | |||||||||||
Three months ended March 31, |
||||||||
(Amounts in millions) |
2025 |
2024 |
||||||
Beginning balance |
$ | $ | ||||||
Current period increases (decreases) in fair value (1) |
( |
) | ||||||
Reclassification to net (income) (1) |
( |
) | ( |
) | ||||
Ending balance |
$ | $ | ||||||
(1) |
During the three months ended March 31, 2025 and 2024, current period increases (decreases) in fair value were net of deferred taxes of $( |
Three months ended March 31, |
Classification of gain (loss) recognized in net income | |||||||||
(Amounts in millions) |
2025 |
2024 |
||||||||
Equity index options |
$ | ( |
) | $ | Net investment gains (losses) | |||||
Financial futures |
( |
) | Changes in fair value of market risk benefits and associated hedges | |||||||
Forward bond purchase commitments |
( |
) | Net investment gains (losses) | |||||||
Fixed indexed annuity embedded derivatives |
( |
) | Net investment gains (losses) | |||||||
Indexed universal life embedded derivatives |
Net investment gains (losses) | |||||||||
Total derivatives not designated as hedges |
$ | $ | ( |
) | ||||||
March 31, 2025 |
December 31, 2024 |
|||||||||||||||||||||||
(Amounts in millions) |
Derivative assets (1) |
Derivative liabilities (1) |
Net derivatives |
Derivative assets (1) |
Derivative liabilities (1) |
Net derivatives |
||||||||||||||||||
Amounts presented in the balance sheet: |
||||||||||||||||||||||||
Gross amounts recognized |
$ | $ | $ | ( |
) | $ | $ | $ | ( |
) | ||||||||||||||
Gross amounts offset in the balance sheet |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net amounts presented in the balance sheet |
( |
) | ( |
) | ||||||||||||||||||||
Gross amounts not offset in the balance sheet: |
||||||||||||||||||||||||
Financial instruments (2) |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Collateral received |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Collateral pledged |
( |
) | ( |
) | ||||||||||||||||||||
Over collateralization |
( |
) | ( |
) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net amount |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Does not include amounts related to embedded derivatives as of March 31, 2025 and December 31, 2024. |
(2) |
Amounts represent derivative assets and/or liabilities that are presented gross within the balance sheet but are held with the same counterparty where we have a master netting arrangement. This adjustment results in presenting the net asset and net liability position for each counterparty. |
• | Third-party pricing services: |
(Amounts in millions) |
Fair value |
Primary methodologies |
Significant inputs | |||||
U.S. government, agencies and government-sponsored enterprises |
$ | |||||||
State and political subdivisions |
$ | |||||||
Non-U.S. government |
$ | |||||||
U.S. corporate |
$ | |||||||
Non-U.S. corporate |
$ | |||||||
Residential mortgage-backed |
$ | |||||||
Commercial mortgage-backed |
$ | |||||||
Other asset-backed |
$ |
• | Internal models: |
• | Broker quotes: |
• | Internal models: |
March 31, 2025 |
||||||||||||||||||||
(Amounts in millions) |
Total |
Level 1 |
Level 2 |
Level 3 |
NAV (1) |
|||||||||||||||
Assets |
||||||||||||||||||||
Investments: |
||||||||||||||||||||
Fixed maturity securities: |
||||||||||||||||||||
U.S. government, agencies and government-sponsored enterprises |
$ | $ | $ | $ | $ | |||||||||||||||
State and political subdivisions |
||||||||||||||||||||
Non-U.S. government |
||||||||||||||||||||
U.S. corporate: |
||||||||||||||||||||
Utilities |
||||||||||||||||||||
Energy |
||||||||||||||||||||
Finance and insurance |
||||||||||||||||||||
Consumer—non-cyclical |
||||||||||||||||||||
Technology and communications |
||||||||||||||||||||
Industrial |
||||||||||||||||||||
Capital goods |
||||||||||||||||||||
Consumer—cyclical |
||||||||||||||||||||
Transportation |
||||||||||||||||||||
Other |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total U.S. corporate |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Non-U.S. corporate: |
||||||||||||||||||||
Utilities |
||||||||||||||||||||
Energy |
||||||||||||||||||||
Finance and insurance |
||||||||||||||||||||
Consumer—non-cyclical |
||||||||||||||||||||
Technology and communications |
||||||||||||||||||||
Industrial |
||||||||||||||||||||
Capital goods |
||||||||||||||||||||
Consumer—cyclical |
||||||||||||||||||||
Transportation |
||||||||||||||||||||
Other |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total non-U.S. corporate |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Residential mortgage-backed |
||||||||||||||||||||
Commercial mortgage-backed |
||||||||||||||||||||
Other asset-backed |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total fixed maturity securities |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Equity securities |
||||||||||||||||||||
Limited partnerships |
||||||||||||||||||||
Other invested assets: |
||||||||||||||||||||
Derivative assets: |
||||||||||||||||||||
Interest rate swaps |
||||||||||||||||||||
Foreign currency swaps |
||||||||||||||||||||
Equity index options |
||||||||||||||||||||
Forward bond purchase commitments |
||||||||||||||||||||
Foreign currency forward contracts |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total derivative assets |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Short-term investments |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total other invested assets |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Separate account assets |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total assets |
$ | $ | $ | $ | $ | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
(1) |
Limited partnerships that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. |
December 31, 2024 |
||||||||||||||||||||
(Amounts in millions) |
Total |
Level 1 |
Level 2 |
Level 3 |
NAV (1) |
|||||||||||||||
Assets |
||||||||||||||||||||
Investments: |
||||||||||||||||||||
Fixed maturity securities: |
||||||||||||||||||||
U.S. government, agencies and government-sponsored enterprises |
$ | $ | $ | $ | $ | |||||||||||||||
State and political subdivisions |
||||||||||||||||||||
Non-U.S. government |
||||||||||||||||||||
U.S. corporate: |
||||||||||||||||||||
Utilities |
||||||||||||||||||||
Energy |
||||||||||||||||||||
Finance and insurance |
||||||||||||||||||||
Consumer—non-cyclical |
||||||||||||||||||||
Technology and communications |
||||||||||||||||||||
Industrial |
||||||||||||||||||||
Capital goods |
||||||||||||||||||||
Consumer—cyclical |
||||||||||||||||||||
Transportation |
||||||||||||||||||||
Other |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total U.S. corporate |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Non-U.S. corporate: |
||||||||||||||||||||
Utilities |
||||||||||||||||||||
Energy |
||||||||||||||||||||
Finance and insurance |
||||||||||||||||||||
Consumer—non-cyclical |
||||||||||||||||||||
Technology and communications |
||||||||||||||||||||
Industrial |
||||||||||||||||||||
Capital goods |
||||||||||||||||||||
Consumer—cyclical |
||||||||||||||||||||
Transportation |
||||||||||||||||||||
Other |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total non-U.S. corporate |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Residential mortgage-backed |
||||||||||||||||||||
Commercial mortgage-backed |
||||||||||||||||||||
Other asset-backed |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total fixed maturity securities |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Equity securities |
||||||||||||||||||||
Limited partnerships |
||||||||||||||||||||
Other invested assets: |
||||||||||||||||||||
Derivative assets: |
||||||||||||||||||||
Interest rate swaps |
||||||||||||||||||||
Foreign currency swaps |
||||||||||||||||||||
Equity index options |
||||||||||||||||||||
Forward bond purchase commitments |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total derivative assets |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Short-term investments |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total other invested assets |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Separate account assets |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total assets |
$ | $ | $ | $ | $ | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
(1) |
Limited partnerships that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. |
Beginning balance as of January 1, 2025 |
Total realized and unrealized gains (losses) |
Purchases |
Sales |
Issuances |
Settlements |
Transfer into Level 3 (1) |
Transfer out of Level 3 (1) |
Ending balance as of March 31, 2025 |
Total gains (losses) attributable to assets still held |
|||||||||||||||||||||||||||||||||||||||
(Amounts in millions) |
net income |
in OCI |
net income |
in OCI |
||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: |
||||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. government |
$ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||
U.S. corporate: |
||||||||||||||||||||||||||||||||||||||||||||||||
Utilities |
( |
) | ||||||||||||||||||||||||||||||||||||||||||||||
Energy |
||||||||||||||||||||||||||||||||||||||||||||||||
Finance and insurance |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||
Consumer—non-cyclical |
( |
) | ||||||||||||||||||||||||||||||||||||||||||||||
Technology and communications |
||||||||||||||||||||||||||||||||||||||||||||||||
Industrial |
||||||||||||||||||||||||||||||||||||||||||||||||
Capital goods |
||||||||||||||||||||||||||||||||||||||||||||||||
Consumer—cyclical |
( |
) | ||||||||||||||||||||||||||||||||||||||||||||||
Transportation |
( |
) | ||||||||||||||||||||||||||||||||||||||||||||||
Other |
( |
) | ||||||||||||||||||||||||||||||||||||||||||||||
Total U.S. corporate |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. corporate: |
||||||||||||||||||||||||||||||||||||||||||||||||
Utilities |
||||||||||||||||||||||||||||||||||||||||||||||||
Energy |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||
Finance and insurance |
||||||||||||||||||||||||||||||||||||||||||||||||
Consumer—non-cyclical |
( |
) | ||||||||||||||||||||||||||||||||||||||||||||||
Technology and communications |
||||||||||||||||||||||||||||||||||||||||||||||||
Industrial |
||||||||||||||||||||||||||||||||||||||||||||||||
Capital goods |
||||||||||||||||||||||||||||||||||||||||||||||||
Transportation |
||||||||||||||||||||||||||||||||||||||||||||||||
Other |
||||||||||||||||||||||||||||||||||||||||||||||||
Total non-U.S. corporate |
( |
) | ||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed |
||||||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed |
||||||||||||||||||||||||||||||||||||||||||||||||
Other asset-backed |
( |
) | ||||||||||||||||||||||||||||||||||||||||||||||
Total fixed maturity securities |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||
Equity securities |
( |
) | ||||||||||||||||||||||||||||||||||||||||||||||
Limited partnerships |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||
Other invested assets: |
||||||||||||||||||||||||||||||||||||||||||||||||
Derivative assets: |
||||||||||||||||||||||||||||||||||||||||||||||||
Equity index options |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||
Forward bond purchase commitments |
||||||||||||||||||||||||||||||||||||||||||||||||
Total derivative assets |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||
Total other invested assets |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||
Total Level 3 assets |
$ | $ | ( |
) | $ | $ | $ | ( |
) | $ | $ | ( |
) | $ | $ | ( |
) | $ | $ | ( |
) | $ | ||||||||||||||||||||||||||
(1) |
The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities. |
Beginning balance as of January 1, 2024 |
Total realized and unrealized gains (losses) |
Purchases |
Sales |
Issuances |
Settlements |
Transfer into Level 3 (1) |
Transfer out of Level 3 (1) |
Ending balance as of March 31, 2024 |
Total gains (losses) attributable to assets still held |
|||||||||||||||||||||||||||||||||||||||
(Amounts in millions) |
in net income |
in OCI |
in net income |
in OCI |
||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: |
||||||||||||||||||||||||||||||||||||||||||||||||
State and political subdivisions |
$ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||
U.S. corporate: |
||||||||||||||||||||||||||||||||||||||||||||||||
Utilities |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||
Energy |
||||||||||||||||||||||||||||||||||||||||||||||||
Finance and insurance |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||
Consumer—non-cyclical |
( |
) | ||||||||||||||||||||||||||||||||||||||||||||||
Technology and communications |
||||||||||||||||||||||||||||||||||||||||||||||||
Industrial |
( |
) | ||||||||||||||||||||||||||||||||||||||||||||||
Capital goods |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||
Consumer—cyclical |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||
Transportation |
( |
) | ||||||||||||||||||||||||||||||||||||||||||||||
Other |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||
Total U.S. corporate |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||
Non-U.S. corporate: |
||||||||||||||||||||||||||||||||||||||||||||||||
Utilities |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||
Energy |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||
Finance and insurance |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||
Consumer—non-cyclical |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||
Technology and communications |
||||||||||||||||||||||||||||||||||||||||||||||||
Industrial |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||
Capital goods |
( |
) | ||||||||||||||||||||||||||||||||||||||||||||||
Consumer—cyclical |
||||||||||||||||||||||||||||||||||||||||||||||||
Transportation |
||||||||||||||||||||||||||||||||||||||||||||||||
Other |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||
Total non-U.S. corporate |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed |
||||||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed |
||||||||||||||||||||||||||||||||||||||||||||||||
Other asset-backed |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||
Total fixed maturity securities |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||
Equity securities |
||||||||||||||||||||||||||||||||||||||||||||||||
Limited partnerships |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||
Other invested assets: |
||||||||||||||||||||||||||||||||||||||||||||||||
Derivative assets: |
||||||||||||||||||||||||||||||||||||||||||||||||
Equity index options |
( |
) | ||||||||||||||||||||||||||||||||||||||||||||||
Forward bond purchase commitments |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||
Total derivative assets |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||
Short-term investments |
( |
) | ||||||||||||||||||||||||||||||||||||||||||||||
Total other invested assets |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||
Total Level 3 assets |
$ | $ | $ | ( |
) | $ | $ | $ | $ | ( |
) | $ | $ | ( |
) | $ | $ | $ | ( |
) | ||||||||||||||||||||||||||||
(1) |
The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities. |
(Amounts in millions) |
2025 |
2024 |
||||||
Total realized and unrealized gains (losses) included in net income: |
||||||||
|
$ | $ | ||||||
|
( |
) | ||||||
|
|
|
|
|||||
|
$ | ( |
) | $ | ||||
|
|
|
|
|||||
Net gains (losses) included in net income attributable to assets still held: |
||||||||
|
$ | $ | ||||||
|
( |
) | ||||||
|
|
|
|
|||||
|
$ | ( |
) | $ | ||||
|
|
|
|
(Amounts in millions) |
Fair value |
Unobservable input |
Range |
Weighted-average (1) | ||||||
Fixed maturity securities: |
||||||||||
U.S. corporate: |
||||||||||
Utilities |
$ | Credit spreads | ||||||||
Energy |
Credit spreads | |||||||||
Finance and insurance |
Credit spreads | |||||||||
Consumer—non-cyclical |
Credit spreads | |||||||||
Technology and communications |
Credit spreads | |||||||||
Industrial |
Credit spreads | |||||||||
Capital goods |
Credit spreads | |||||||||
Consumer—cyclical |
Credit s pr eads |
|||||||||
Transportation |
Credit spreads | |||||||||
Other |
Credit s pre ads |
|||||||||
|
|
|||||||||
Total U.S. corporate |
$ | Credit spreads | ||||||||
|
|
|||||||||
Non-U.S. corporate: |
||||||||||
Utilities |
$ | Credit spreads | ||||||||
Energy |
Credit spreads | |||||||||
Finance and insurance |
Credit spreads | |||||||||
Consumer—non-cyclical |
Credit spreads | |||||||||
Technology and communications |
Credit spreads | |||||||||
Industrial |
Credit spreads | |||||||||
Capital goods |
Credit spreads | |||||||||
Transportation |
Credit spreads | |||||||||
Other |
Credit spreads | |||||||||
|
|
|||||||||
Total non-U.S. corporate |
$ | Credit spreads | ||||||||
|
|
|||||||||
Derivative assets: |
||||||||||
Equity index options |
$ | Equity index volatility | ||||||||
Forward bond purchase commitments |
$ | Counterparty financing spreads | ||||||||
Other assets (2) |
$ | Lapse rate | ||||||||
Non-performance risk(counterparty credit risk) |
||||||||||
Equity index volatility |
(1) |
Unobservable inputs weighted by the relative fair value of the associated instrument for fixed maturity securities, notional for derivative assets and the policyholder account balances associated with the instrument for the net reinsured portion of our variable annuity MRBs. |
(2) |
Represents the net reinsured portion of our variable annuity MRBs. |
March 31, 2025 |
||||||||||||||||
(Amounts in millions) |
Total |
Level 1 |
Level 2 |
Level 3 |
||||||||||||
Liabilities |
||||||||||||||||
Policyholder account balances: |
||||||||||||||||
Fixed indexed annuity embedded derivatives |
$ | $ | $ | $ | ||||||||||||
Indexed universal life embedded derivatives |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total policyholder account balances |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative liabilities: |
||||||||||||||||
Interest rate swaps |
||||||||||||||||
Foreign currency swaps |
||||||||||||||||
Forward bond purchase commitments |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total derivative liabilities |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total liabilities |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
December 31, 2024 |
||||||||||||||||
(Amounts in millions) |
Total |
Level 1 |
Level 2 |
Level 3 |
||||||||||||
Liabilities |
||||||||||||||||
Policyholder account balances: |
||||||||||||||||
Fixed indexed annuity embedded derivatives |
$ | $ | $ | $ | ||||||||||||
Indexed universal life embedded derivatives |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total policyholder account balances |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative liabilities: |
||||||||||||||||
Interest rate swaps |
||||||||||||||||
Foreign currency swaps |
||||||||||||||||
Forward bond purchase commitments |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total derivative liabilities |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total liabilities |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
Beginning balance as of January 1, 2025 |
Total realized and unrealized (gains) losses |
Ending balance as of March 31, 2025 |
Total (gains) losses attributable to liabilities still held |
|||||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) |
Included in net (income) |
Included in OCI |
Purchases |
Sales |
Issuances |
Settlements |
Transfer into Level 3 |
Transfer out of Level 3 |
in net (income) |
in OCI |
||||||||||||||||||||||||||||||||||||||
Policyholder account balances: |
||||||||||||||||||||||||||||||||||||||||||||||||
Fixed indexed annuity embedded derivatives |
$ | $ | ( |
) | $ | $ | $ | $ | $ | ( |
) | $ | $ | ( |
) | $ | $ | ( |
) | $ | ||||||||||||||||||||||||||||
Indexed universal life embedded derivatives |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total policyholder account balances |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Derivative liabilities: |
||||||||||||||||||||||||||||||||||||||||||||||||
Forward bond purchase commitments |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total derivative liabilities |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total Level 3 liabilities |
$ | $ | ( |
) | $ | ( |
) | $ | $ | $ | $ | ( |
) | $ | $ | ( |
) | $ | $ | ( |
) | $ | ( |
) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance as of January 1, 2024 |
Total realized and unrealized (gains) losses |
Ending balance |
Total (gains) losses attributable to liabilities still held |
|||||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) |
Included in net (income) |
Included in OCI |
Purchases |
Sales |
Issuances |
Settlements |
Transfer into Level 3 |
Transfer out of Level 3 |
as of March 31, 2024 |
in net (income) |
in OCI |
|||||||||||||||||||||||||||||||||||||
Policyholder account balances: |
||||||||||||||||||||||||||||||||||||||||||||||||
Fixed indexed annuity embedded derivatives |
$ | $ | $ | $ | $ | $ | $ | ( |
) | $ | $ | ( |
) | $ | $ | $ | ||||||||||||||||||||||||||||||||
Indexed universal life embedded derivatives |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total policyholder account balances |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Derivative liabilities: |
||||||||||||||||||||||||||||||||||||||||||||||||
Forward bond purchase commitments |
||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total derivative liabilities |
||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total Level 3 liabilities |
$ | $ | $ | $ | $ | $ | $ | ( |
) | $ | $ | ( |
) | $ | $ | $ | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in millions) |
2025 |
2024 |
||||||
Total realized and unrealized (gains) losses included in net (income): |
||||||||
$ | $ | |||||||
( |
) | |||||||
$ | ( |
) | $ | |||||
Total (gains) losses included in net (income) attributable to liabilities still held: |
||||||||
$ | $ | |||||||
( |
) | |||||||
$ | ( |
) | $ | |||||
(Amounts in millions) |
Fair value |
Unobservable input |
Range |
Weighted-average (1) |
||||||||||
Policyholder account balances: |
||||||||||||||
Fixed indexed annuity embedded derivatives |
$ | Expected future interest credited | ||||||||||||
Indexed universal life embedded derivatives |
$ | Expected future interest credited | ||||||||||||
Net market risk benefits (2) : |
||||||||||||||
Fixed indexed annuities |
$ | GMWB utilization rate | ||||||||||||
Non-performance risk (credit spreads) | ||||||||||||||
Expected future interest credited | ||||||||||||||
Variable annuities |
$ | Lapse rate | ||||||||||||
GMWB utilization rate | ||||||||||||||
Non-performance risk (credit spreads) | ||||||||||||||
Equity index volatility | ||||||||||||||
Derivative liabilities: |
||||||||||||||
Forward bond purchase commitments |
$ | Counterparty financing spreads |
(1) |
Unobservable inputs weighted by the policyholder account balances associated with the instrument and notional for derivative liabilities. |
(2) |
Refer to note 11 for additional details related to MRBs. |
March 31, 2025 |
||||||||||||||||||||||||
Notional amount |
Carrying amount |
Fair value |
||||||||||||||||||||||
(Amounts in millions) |
Total |
Level 1 |
Level 2 |
Level 3 |
||||||||||||||||||||
Assets: |
||||||||||||||||||||||||
Commercial mortgage loans, net |
(1) |
$ | $ | $ | $ | $ | ||||||||||||||||||
Bank loan investments |
(1) |
|||||||||||||||||||||||
Liabilities: |
||||||||||||||||||||||||
Long-term borrowings |
(1) |
|||||||||||||||||||||||
Investment contracts |
(1) |
|||||||||||||||||||||||
Commitments to fund investments: |
||||||||||||||||||||||||
Bank loan investments |
$ | |||||||||||||||||||||||
Private placement investments |
||||||||||||||||||||||||
Commercial mortgage loans |
(1) |
These financial instruments do not have notional amounts. |
December 31, 2024 |
||||||||||||||||||||||||
Notional amount |
Carrying amount |
Fair value |
||||||||||||||||||||||
(Amounts in millions) |
Total |
Level 1 |
Level 2 |
Level 3 |
||||||||||||||||||||
Assets: |
||||||||||||||||||||||||
Commercial mortgage loans, net |
(1) |
$ | $ | $ | $ | $ | ||||||||||||||||||
Bank loan investments |
(1) |
|||||||||||||||||||||||
Liabilities: |
||||||||||||||||||||||||
Long-term borrowings |
(1) |
|||||||||||||||||||||||
Investment contracts |
(1) |
|||||||||||||||||||||||
Commitments to fund investments: |
||||||||||||||||||||||||
Bank loan investments |
$ | |||||||||||||||||||||||
Private placement investments |
||||||||||||||||||||||||
Commercial mortgage loans |
(1) |
These financial instruments do not have notional amounts. |
March 31, 2025 |
December 31, 2024 |
|||||||||||||||
(Amounts in millions) |
Carrying value |
Commitments to fund |
Carrying value |
Commitments to fund |
||||||||||||
Limited partnerships accounted for at NAV: |
||||||||||||||||
Private equity funds (1) |
$ | $ | $ | $ | ||||||||||||
Real estate funds (2) |
||||||||||||||||
Infrastructure funds (3) |
||||||||||||||||
Total limited partnerships accounted for at NAV |
||||||||||||||||
Limited partnerships accounted for at fair value |
||||||||||||||||
Limited partnerships accounted for under equity method of accounting |
||||||||||||||||
Total |
$ | $ | $ | $ | ||||||||||||
(1) |
This class employs various investment strategies such as leveraged buyout, growth equity, venture capital and mezzanine financing, generally investing in debt or equity positions directly in companies or assets of various sizes across diverse industries globally, primarily concentrated in North America. |
(2) |
This class invests in real estate in North America, Europe and Asia via direct property ownership, joint ventures, mortgages and investments in debt and equity instruments. |
(3) |
This class invests in the debt or equity of cash flow generating assets diversified across a variety of industries, including transportation, energy infrastructure, renewable power, social infrastructure, power generation, water, telecommunications and other regulated entities globally. |
March 31, 2025 |
||||||||||||||||||||
(Amounts in millions) |
Long- term care insurance |
Life insurance |
Fixed annuities |
Variable annuities |
Total |
|||||||||||||||
Balance as of January 1 |
$ | $ | $ | $ | $ | |||||||||||||||
Costs deferred |
||||||||||||||||||||
Amortization |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Balance as of March 31 |
$ | $ | $ | $ | ||||||||||||||||
Enact segment |
||||||||||||||||||||
Total deferred acquisition costs |
$ | |||||||||||||||||||
December 31, 2024 |
||||||||||||||||||||
(Amounts in millions) |
Long- term care insurance |
Life insurance |
Fixed annuities |
Variable annuities |
Total |
|||||||||||||||
Balance as of January 1 |
$ | $ | $ | $ | $ | |||||||||||||||
Costs deferred |
||||||||||||||||||||
Amortization |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance as of December 31 |
$ | $ | $ | $ | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Enact segment |
||||||||||||||||||||
|
|
|||||||||||||||||||
Total deferred acquisition costs |
$ | |||||||||||||||||||
|
|
(Amounts in millions) |
March 31, 2025 |
December 31, 2024 |
||||||
Long-term care insurance |
$ | $ | ||||||
Life insurance |
||||||||
Fixed annuities |
||||||||
|
|
|
|
|||||
Total long-duration insurance contracts |
||||||||
|
|
|
|
|||||
Deferred profit liability |
||||||||
Cost of reinsurance |
||||||||
|
|
|
|
|||||
Total future policy benefits |
$ | $ | ||||||
|
|
|
|
March 31, 2025 |
||||||||||||
(Dollar amounts in millions) |
Long- term care insurance |
Life insurance |
Fixed annuities |
|||||||||
Present value of expected net premiums: |
||||||||||||
Beginning balance as of January 1 |
$ | $ | $ | |||||||||
Beginning balance, at original discount rate |
$ | $ | $ | |||||||||
Effect of changes in cash flow assumptions |
||||||||||||
Effect of actual variances from expected experience |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Adjusted beginning balance |
||||||||||||
Issuances |
||||||||||||
Interest accretion |
||||||||||||
Net premiums collected (1) |
( |
) | ( |
) | ( |
) | ||||||
Derecognition (lapses and withdrawals) |
||||||||||||
Other |
||||||||||||
|
|
|
|
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|
|||||||
Ending balance, at original discount rate |
||||||||||||
Effect of changes in discount rate assumptions |
( |
) | ||||||||||
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|
|
|
|
|
|||||||
Ending balance as of March 31 |
$ | $ | $ | |||||||||
|
|
|
|
|
|
|||||||
Present value of expected future policy benefits: |
||||||||||||
Beginning balance as of January 1 |
$ | $ | $ | |||||||||
Beginning balance, at original discount rate |
$ | $ | $ | |||||||||
Effect of changes in cash flow assumptions |
||||||||||||
Effect of actual variances from expected experience |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
Adjusted beginning balance |
||||||||||||
Issuances |
||||||||||||
Interest accretion |
||||||||||||
Benefit payments |
( |
) | ( |
) | ( |
) | ||||||
Derecognition (lapses and withdrawals) |
||||||||||||
Other |
||||||||||||
|
|
|
|
|
|
|||||||
Ending balance, at original discount rate |
||||||||||||
Effect of changes in discount rate assumptions |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Ending balance as of March 31 |
$ | $ | $ | |||||||||
|
|
|
|
|
|
|||||||
Net liability for future policy benefits, before flooring adjustments |
$ | $ | $ | |||||||||
Flooring adjustments (2) |
||||||||||||
|
|
|
|
|
|
|||||||
Net liability for future policy benefits |
||||||||||||
Less: reinsurance recoverable |
||||||||||||
|
|
|
|
|
|
|||||||
Net liability for future policy benefits, net of reinsurance recoverable |
$ | $ | $ | |||||||||
|
|
|
|
|
|
|||||||
Weighted-average liability duration (years) |
(1) |
Represents the portion of gross premiums collected from policyholders that is used to fund expected benefit payments. |
(2) |
Flooring adjustments are necessary when a cohort’s present value of future net premiums exceeds the present value of future benefits. The flooring adjustment ensures that the liability for future policy benefits for each cohort is not less than zero. This adjustment is most prevalent in our term life insurance products due to their product design of a level premium period followed by annual premium rate increases. |
December 31, 2024 |
||||||||||||
(Dollar amounts in millions) |
Long- term care insurance |
Life insurance |
Fixed annuities |
|||||||||
Present value of expected net premiums: |
||||||||||||
Beginning balance as of January 1 |
$ | $ | $ | |||||||||
Beginning balance, at original discount rate |
$ | $ | $ | |||||||||
Effect of changes in cash flow assumptions |
||||||||||||
Effect of actual variances from expected experience |
( |
) | ( |
) | ||||||||
Adjusted beginning balance |
||||||||||||
Issuances |
||||||||||||
Interest accretion |
||||||||||||
Net premiums collected (1) |
( |
) | ( |
) | ( |
) | ||||||
Derecognition (lapses and withdrawals) |
||||||||||||
Other |
||||||||||||
Ending balance, at original discount rate |
||||||||||||
Effect of changes in discount rate assumptions |
( |
) | ||||||||||
Ending balance as of December 31 |
$ | $ | $ | |||||||||
Present value of expected future policy benefits: |
||||||||||||
Beginning balance as of January 1 |
$ | $ | $ | |||||||||
Beginning balance, at original discount rate |
$ | $ | $ | |||||||||
Effect of changes in cash flow assumptions |
( |
) | ||||||||||
Effect of actual variances from expected experience |
( |
) | ( |
) | ||||||||
Adjusted beginning balance |
||||||||||||
Issuances |
||||||||||||
Interest accretion |
||||||||||||
Benefit payments |
( |
) | ( |
) | ( |
) | ||||||
Derecognition (lapses and withdrawals) |
||||||||||||
Other |
( |
) | ( |
) | ||||||||
Ending balance, at original discount rate |
||||||||||||
Effect of changes in discount rate assumptions |
( |
) | ||||||||||
Ending balance as of December 31 |
$ | $ | $ | |||||||||
Net liability for future policy benefits, before flooring adjustments |
$ | $ | $ | |||||||||
Flooring adjustments (2) |
||||||||||||
Net liability for future policy benefits |
||||||||||||
Less: reinsurance recoverable |
||||||||||||
Net liability for future policy benefits, net of reinsurance recoverable |
$ | $ | $ | |||||||||
Weighted-average liability duration (years) |
(1) |
Represents the portion of gross premiums collected from policyholders that is used to fund expected benefit payments. |
(2) |
Flooring adjustments are necessary when a cohort’s present value of future net premiums exceeds the present value of future benefits. The flooring adjustment ensures that the liability for future policy benefits for each cohort is not less than zero. This adjustment is most prevalent in our term life insurance products due to their product design of a level premium period followed by annual premium rate increases. |
March 31, 2025 |
December 31, 2024 |
|||||||
Long-term care insurance |
||||||||
Interest accretion (locked-in) rate |
% | % | ||||||
Current discount rate |
% | % | ||||||
Life insurance |
||||||||
Interest accretion (locked-in) rate |
% | % | ||||||
Current discount rate |
% | % | ||||||
Fixed annuities |
||||||||
Interest accretion (locked-in) rate |
% | % | ||||||
Current discount rate |
% | % |
March 31, 2025 |
December 31, 2024 |
|||||||||||||||
(Amounts in millions) |
Undiscounted |
Discounted |
Undiscounted |
Discounted |
||||||||||||
Long-term care insurance |
||||||||||||||||
Expected future gross premiums |
$ | $ | $ | $ | ||||||||||||
Expected future benefit payments |
$ | $ | $ | $ | ||||||||||||
Life insurance |
||||||||||||||||
Expected future gross premiums |
$ | $ | $ | $ | ||||||||||||
Expected future benefit payments |
$ | $ | $ | $ | ||||||||||||
Fixed annuities |
||||||||||||||||
Expected future gross premiums |
$ | $ | $ | $ | ||||||||||||
Expected future benefit payments |
$ | $ | $ | $ |
Three months ended March 31, |
Year ended |
|||||||||||||||||||||||
2025 |
2024 |
December 31, 2024 |
||||||||||||||||||||||
(Amounts in millions) |
Gross premiums |
Interest accretion (1) |
Gross premiums |
Interest accretion (1) |
Gross premiums |
Interest accretion (1) |
||||||||||||||||||
Long-term care insurance |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Life insurance |
||||||||||||||||||||||||
Fixed annuities |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Amounts for interest accretion are included in benefits and other changes in policy reserves in the condensed consolidated statements of income. |
(Amounts in millions) |
March 31, 2025 |
December 31, 2024 |
||||||
Life insurance |
$ | $ | ||||||
Fixed annuities |
||||||||
Variable annuities |
||||||||
Fixed indexed annuity embedded derivatives (1) |
||||||||
Indexed universal life embedded derivatives (1) |
||||||||
Additional insurance liabilities (2) |
||||||||
Other |
||||||||
|
|
|
|
|||||
Total policyholder account balances |
$ | $ | ||||||
|
|
|
|
(1) |
See note 5 for additional information. |
(2) |
Represents additional liabilities related to death or other insurance benefits that are recorded within policyholder account balances and are considered long-duration insurance contracts. See note 10 for additional information. |
March 31, 2025 |
||||||||||||
(Dollar amounts in millions) |
Life insurance |
Fixed annuities |
Variable annuities |
|||||||||
Beginning balance as of January 1 |
$ | $ | $ | |||||||||
Issuances |
||||||||||||
Premiums received |
||||||||||||
Policy charges |
( |
) | ( |
) | ( |
) | ||||||
Surrenders and withdrawals |
( |
) | ( |
) | ( |
) | ||||||
Benefit payments |
( |
) | ( |
) | ( |
) | ||||||
Interest credited |
||||||||||||
Other |
||||||||||||
|
|
|
|
|
|
|||||||
Ending balance as of March 31 |
$ | $ | $ | |||||||||
|
|
|
|
|
|
|||||||
Weighted-average crediting rate |
% | % |