v3.25.0.1
Investments
 12 Months Ended
Dec. 31, 2024
Investments [Abstract]  
Investments Investments
Total investments at December 31, 2024 and 2023 were as follows:
20242023
In millionsCurrentLong-termTotalCurrentLong-termTotal
Debt securities available for sale$2,256 $23,777 $26,033 $3,131 $18,582 $21,713 
Mortgage loans151 1,354 1,505 128 1,183 1,311 
Other investments— 3,803 3,803 — 3,254 3,254 
Total investments
$2,407 $28,934 $31,341 $3,259 $23,019 $26,278 

At December 31, 2024 and 2023, the Company held investments of $269 million and $307 million, respectively, related to the 2012 conversion of an existing group annuity contract from a participating to a non-participating contract. These investments are included in the total investments of large case pensions supporting non-experience-rated products. Although these investments are not accounted for as Separate Accounts assets, they are legally segregated and are not subject to claims that arise out of the Company’s business and only support future policy benefits obligations under that group annuity contract.

Debt Securities

Debt securities available for sale at December 31, 2024 and 2023 were as follows:
In millions
Amortized
 Cost (1)
Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
December 31, 2024   
Debt securities:   
U.S. government securities$2,826 $7 $(38)$2,795 
States, municipalities and political subdivisions712 4 (18)698 
U.S. corporate securities13,043 94 (412)12,725 
Foreign securities2,608 27 (111)2,524 
Residential mortgage-backed securities792 2 (54)740 
Commercial mortgage-backed securities1,731 9 (67)1,673 
Other asset-backed securities4,834 35 (7)4,862 
Redeemable preferred securities16 — — 16 
Total debt securities (2)
$26,562 $178 $(707)$26,033 
December 31, 2023
Debt securities:
U.S. government securities$2,071 $19 $(54)$2,036 
States, municipalities and political subdivisions2,219 31 (35)2,215 
U.S. corporate securities10,156 133 (446)9,843 
Foreign securities2,593 41 (122)2,512 
Residential mortgage-backed securities862 8 (60)810 
Commercial mortgage-backed securities1,066 9 (100)975 
Other asset-backed securities3,294 26 (18)3,302 
Redeemable preferred securities21 — (1)20 
Total debt securities (2)
$22,282 $267 $(836)$21,713 
_____________________________________________
(1)There was no allowance for expected credit losses recorded on available-for-sale debt securities at December 31, 2024 or December 31, 2023.
(2)Investment risks associated with the Company’s experience-rated products generally do not impact the Company’s consolidated operating results. At December 31, 2024, debt securities with a fair value of $543 million, gross unrealized capital gains of $5 million and gross unrealized capital losses of $30 million, and at December 31, 2023, debt securities with a fair value of $592 million, gross unrealized capital gains of $10 million and gross
unrealized capital losses of $28 million were included in total debt securities, but support experience-rated products. Changes in net unrealized capital gains (losses) on these securities are not reflected in accumulated other comprehensive loss.

The amortized cost and fair value of debt securities at December 31, 2024 are shown below by contractual maturity. Actual maturities may differ from contractual maturities because securities may be restructured, called or prepaid, or the Company intends to sell a security prior to maturity.
In millions Amortized
Cost		Fair
Value
Due to mature: 
Less than one year$763 $761 
One year through five years10,599 10,510 
After five years through ten years4,683 4,578 
Greater than ten years3,160 2,909 
Residential mortgage-backed securities792 740 
Commercial mortgage-backed securities1,731 1,673 
Other asset-backed securities4,834 4,862 
Total$26,562 $26,033 

Mortgage-Backed and Other Asset-Backed Securities
All of the Company’s residential mortgage-backed securities at December 31, 2024 were issued by the Government National Mortgage Association, the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation and carry agency guarantees and explicit or implicit guarantees by the U.S. Government. At December 31, 2024, the Company’s residential mortgage-backed securities had an average credit quality rating of AA and a weighted average duration of 6.4 years.

The Company’s commercial mortgage-backed securities have underlying loans that are dispersed throughout the U.S. Significant market observable inputs used to value these securities include loss severity and probability of default. At December 31, 2024, these securities had an average credit quality rating of AAA and a weighted average duration of 4.9 years.

The Company’s other asset-backed securities have a variety of underlying collateral (e.g., automobile loans, credit card receivables, home equity loans and commercial loans). Significant market observable inputs used to value these securities include the unemployment rate, loss severity and probability of default. At December 31, 2024, these securities had an average credit quality rating of AA and a weighted average duration of less than one year.
Summarized below are the debt securities the Company held at December 31, 2024 and 2023 that were in an unrealized capital loss position, aggregated by the length of time the investments have been in that position:
Less than 12 monthsGreater than 12 monthsTotal
In millions, except number of securitiesNumber
of
 Securities		Fair
Value		Unrealized
Losses		Number
of
 Securities		Fair
Value		Unrealized
Losses		Number
of
 Securities		Fair
Value		Unrealized
Losses
December 31, 2024
Debt securities:  
U.S. government securities266 $1,053 $18 155 $394 $20 421 $1,447 $38 
States, municipalities and political subdivisions100 181 3 137 201 15 237 382 18 
U.S. corporate securities3,119 4,144 64 2,602 3,395 348 5,721 7,539 412 
Foreign securities599 810 21 616 874 90 1,215 1,684 111 
Residential mortgage-backed securities89 267 5 361 342 49 450 609 54 
Commercial mortgage-backed securities186 628 11 237 464 56 423 1,092 67 
Other asset-backed securities139 414 5 62 58 2 201 472 7 
Redeemable preferred securities4 9 — 4 6 — 8 15 — 
Total debt securities4,502 $7,506 $127 4,174 $5,734 $580 8,676 $13,240 $707 
December 31, 2023
Debt securities:
U.S. government securities74 $194 $2 280 $891 $52 354 $1,085 $54 
States, municipalities and political subdivisions95 181 1 455 733 34 550 914 35 
U.S. corporate securities576 672 14 4,120 5,602 432 4,696 6,274 446 
Foreign securities160 243 4 964 1,407 118 1,124 1,650 122 
Residential mortgage-backed securities33 97 1 461 517 59 494 614 60 
Commercial mortgage-backed securities44 94 2 287 581 98 331 675 100 
Other asset-backed securities196 449 4 443 867 14 639 1,316 18 
Redeemable preferred securities4 2 — 8 18 1 12 20 1 
Total debt securities1,182 $1,932 $28 7,018 $10,616 $808 8,200 $12,548 $836 

The Company reviewed the securities in the table above and concluded that they are performing assets generating investment income to support the needs of the Company’s business. In performing this review, the Company considered factors such as the quality of the investment security based on research performed by the Company’s internal credit analysts and external rating agencies and the prospects of realizing the carrying value of the security based on the investment’s current prospects for recovery. Unrealized capital losses at December 31, 2024 were generally caused by interest rate increases and not by unfavorable changes in the credit quality associated with these securities. As of December 31, 2024, the Company did not intend to sell these securities, and did not believe it was more likely than not that it would be required to sell these securities prior to the anticipated recovery of their amortized cost basis.
The maturity dates for debt securities in an unrealized capital loss position at December 31, 2024 were as follows:
 Supporting experience-
rated products		Supporting remaining
products		Total
In millionsFair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
Due to mature:      
Less than one year$— $— $420 $4 $420 $4 
One year through five years120 3 5,462 149 5,582 152 
After five years through ten years86 6 2,681 138 2,767 144 
Greater than ten years166 20 2,132 259 2,298 279 
Residential mortgage-backed securities6 — 603 54 609 54 
Commercial mortgage-backed securities6 1 1,086 66 1,092 67 
Other asset-backed securities12 — 460 7 472 7 
Total$396 $30 $12,844 $677 $13,240 $707 

Mortgage Loans

The Company’s mortgage loans are collateralized by commercial real estate. During the years ended December 31, 2024 and 2023, the Company had the following activity in its mortgage loan portfolio:
In millions20242023
New mortgage loans$323 $342 
Mortgage loans fully repaid104 43 
Mortgage loans foreclosed— — 

The Company assesses mortgage loans on a regular basis for credit impairments, and assigns a credit quality indicator to each loan. The Company’s credit quality indicator is internally developed and categorizes each loan in its portfolio on a scale from 1 to 7. These indicators are based upon several factors, including current loan-to-value ratios, current and future property cash flow, property condition, market trends, creditworthiness of the borrower and deal structure.

•Category 1 - Represents loans of superior quality.
•Categories 2 to 4 - Represent loans where credit risk is minimal to acceptable; however, these loans may display some susceptibility to economic changes.
•Categories 5 and 6 - Represent loans where credit risk is not substantial, but these loans warrant management’s close attention.
•Category 7 - Represents loans where collections are potentially at risk; if necessary, an impairment is recorded.
Based upon the Company’s assessments at December 31, 2024 and 2023, the amortized cost basis of the Company’s mortgage loans within each credit quality indicator by year of origination was as follows:

Amortized Cost Basis by Year of Origination
In millions, except credit quality indicator20242023202220212020PriorTotal
December 31, 2024
1$— $— $— $— $— $8 $8 
2 to 4315 292 320 205 35 285 1,452 
5 and 6— — 4 13 — 28 45 
7— — — — — — — 
Total$315 $292 $324 $218 $35 $321 $1,505 
December 31, 2023
1$— $— $— $— $11 $11 
2 to 4302 346 225 35 354 1,262 
5 and 6— — 13 — 19 32 
7— — 6 — — 6 
Total$302 $346 $244 $35 $384 $1,311 

At December 31, 2024 scheduled mortgage loan principal repayments were as follows:
In millions
2025$151 
2026164 
2027249 
2028313 
2029297 
Thereafter331 
Total$1,505 

Net Investment Income

Sources of net investment income for the years ended December 31, 2024, 2023 and 2022 were as follows:
In millions202420232022
Debt securities$1,136 $841 $702 
Mortgage loans76 59 51 
Other investments887 796 448 
Gross investment income2,099 1,696 1,201 
Investment expenses(63)(46)(43)
Net investment income (excluding net realized capital gains or losses)2,036 1,650 1,158 
Net realized capital gains (losses)
117 (497)(320)
Net investment income
$2,153 $1,153 $838 

Excluding amounts related to experience-rated products, proceeds from the sale of available-for-sale debt securities and the related gross realized capital gains and losses in the years ended December 31, 2024, 2023 and 2022 were as follows:
In millions202420232022
Proceeds from sales$6,489 $5,031 $4,243 
Gross realized capital gains37 9 24 
Gross realized capital losses(190)420 177