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Investments (Tables)
 9 Months Ended
Sep. 30, 2021
Investments, Debt and Equity Securities [Abstract]  
Marketable Securities
Investment Portfolio
Carrying Value
As of
September 30, 2021December 31, 2020
 (in millions)
Fixed-maturity securities (1):
Externally managed$7,214 $7,301 
Loss mitigation securities and other900 925 
AssuredIM managed549 547 
Short-term investments694 851 
Other invested assets:
Equity method investments - AssuredIM Funds102 91 
Equity method investments - other145 107 
Other13 16 
Total$9,617 $9,838 
____________________
(1)    7.9% and 8.1% of fixed-maturity securities were rated BIG as of September 30, 2021 and December 31, 2020, respectively, consisting primarily of loss mitigation and other risk management strategies.
Fixed Maturity Securities and Short Term Investments by Security Type
Fixed-Maturity Securities and Short-Term Investments
by Security Type 
As of September 30, 2021
Security TypePercent
of
Total (1)		Amortized
Cost		Allowance for Credit LossesGross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair
Value
AOCI (4)
Pre-tax Gain
(Loss) on
Securities
with
Credit Loss
Weighted
Average
Credit
Rating (2)
 (dollars in millions)
Fixed-maturity securities:       
Obligations of state and political subdivisions40 %$3,550 $(12)$319 $(4)$3,853 $— AA-
U.S. government and agencies1 125 — 8 (2)131 — AA+
Corporate securities29 2,593 (1)136 (21)2,707 (4)A
Mortgage-backed securities (3):0  
RMBS5 486 (15)29 (16)484 (16)BBB+
Commercial mortgage-backed securities (CMBS)4 335 — 19 — 354 — AAA
Asset-backed securities:
CLOs6 541 — 2 — 543 — AA
Other5 423 (7)40 (2)454 (2)CCC+
Non-U.S. government securities2 135 — 5 (3)137 (1)AA-
Total fixed-maturity securities92 8,188 (35)558 (48)8,663 (23)A+
Short-term investments8 694 — — — 694 — AAA
Total100 %$8,882 $(35)$558 $(48)$9,357 $(23)A+
Fixed-Maturity Securities and Short-Term Investments
by Security Type 
As of December 31, 2020 
Security TypePercent
of
Total (1)		Amortized
Cost		Allowance for Credit LossesGross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair
Value		AOCI
Pre-tax
Gain
(Loss) on
Securities
with
Credit Loss
Weighted
Average
Credit
Rating (2)
 (dollars in millions)
Fixed-maturity securities:       
Obligations of state and political subdivisions40 %$3,633 $(11)$369 $— $3,991 $— AA-
U.S. government and agencies2 151 — 12 (1)162 — AA+
Corporate securities26 2,366 (42)210 (21)2,513 (16)A
Mortgage-backed securities (3):      
RMBS6 571 (19)35 (21)566 (20)A-
CMBS4 358 — 29 — 387 — AAA
Asset-backed securities:
CLOs6 531 — 2 (1)532 — AA-
Other5 427 (6)31 (3)449 (3)CCC+
Non-U.S. government securities2 167 — 10 (4)173 — AA-
Total fixed-maturity securities91 8,204 (78)698 (51)8,773 (39)A+
Short-term investments9 851 — — — 851 — AAA
Total100 %$9,055 $(78)$698 $(51)$9,624 $(39)A+
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(1)Based on amortized cost.
(2)Ratings represent the lower of the Moody’s and S&P classifications, except for loss mitigation or risk management securities, which use internal ratings classifications. The Company’s portfolio primarily consists of high-quality, liquid instruments.
(3)U.S. government-agency obligations were approximately 32% of mortgage-backed securities as of September 30, 2021 and 35% as of December 31, 2020 based on fair value.
(4)Accumulated other comprehensive income (AOCI).
Fixed-Maturity Securities Gross Unrealized Loss by Length of Time
Gross Unrealized Loss by Length of Time
for Fixed-Maturity Securities for Which a Credit Loss was Not Recorded
As of September 30, 2021  

 Less than 12 months12 months or moreTotal
 Fair
Value		Unrealized
Loss		Fair
Value		Unrealized
Loss		Fair
Value		Unrealized
Loss
 (dollars in millions)
Obligations of state and political subdivisions$122 $(4)$— $— $122 $(4)
U.S. government and agencies36 — 21 (2)57 (2)
Corporate securities483 (14)24 (3)507 (17)
Mortgage-backed securities: 
RMBS3 — 7 — 10 — 
CMBS5 — — — 5 — 
Asset-backed securities:
CLOs292 — 23 — 315 — 
Non-U.S. government securities20 (1)8 (1)28 (2)
Total$961 $(19)$83 $(6)$1,044 $(25)
Number of securities (1) 376  24  398 
 
Gross Unrealized Loss by Length of Time
for Fixed-Maturity Securities for Which a Credit Loss was Not Recorded
As of December 31, 2020

 Less than 12 months12 months or moreTotal
 Fair
Value		Unrealized
Loss		Fair
Value		Unrealized
Loss		Fair
Value		Unrealized
Loss
 (dollars in millions)
Obligations of state and political subdivisions$1 $— $— $— $1 $— 
U.S. government and agencies22 (1)— — 22 (1)
Corporate securities73 — 45 (5)118 (5)
Mortgage-backed securities:    
RMBS15 (1)1 — 16 (1)
CMBS— — 1 — 1 — 
Asset-backed securities:
CLOs251 (1)81 — 332 (1)
Non-U.S. government securities— — 38 (4)38 (4)
Total$362 $(3)$166 $(9)$528 $(12)
Number of securities (1) 94  46  139 
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(1)    The number of securities does not add across because lots consisting of the same securities have been purchased at different times and appear in both categories above (i.e., less than 12 months and 12 months or more). If a security appears in both categories, it is counted only once in the total column.
Investments Classified by Contractual Maturity Date
The amortized cost and estimated fair value of available-for-sale fixed-maturity securities by contractual maturity as of September 30, 2021 are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
 
Distribution of Fixed-Maturity Securities by Contractual Maturity
As of September 30, 2021
 Amortized
Cost		Estimated
Fair Value
 (in millions)
Due within one year$259 $265 
Due after one year through five years1,685 1,781 
Due after five years through 10 years1,912 2,018 
Due after 10 years3,511 3,761 
Mortgage-backed securities:  
RMBS486 484 
CMBS335 354 
Total$8,188 $8,663 
Net Investment Income
Net Investment Income and Equity in Earnings of Investees
 Third QuarterNine Months
 2021202020212020
(in millions)
Investment income:
Externally managed fixed-maturity securities$52 $54 $155 $178 
Loss mitigation securities and other11 16 41 53 
AssuredIM managed fixed-maturity securities (1)4 3 12 4 
Investment income67 73 208 235 
Investment expenses(1)(2)(4)(6)
Net investment income$66 $71 $204 $229 
Equity in earnings of investees (2)$23 $7 $66 $3 
____________________
(1)    Represents interest income on a portfolio of CLOs and municipal bonds managed by AssuredIM under an IMA.
(2)     Includes $13 million and $39 million for Third Quarter 2021 and Nine Months 2021, respectively, related to fair value gains on investments at fair value option using net asset value (NAV), as a practical expedient.
Net Realized Investment Gains (Losses) The table below presents the components of net realized investment gains (losses). Realized gains and losses on sales of investments are determined using the specific identification method.
Net Realized Investment Gains (Losses)
 Third QuarterNine Months
 2021202020212020
 (in millions)
Gross realized gains on available-for-sale securities$3 $16 $12 $39 
Gross realized losses on available-for-sale securities(6)(3)(10)(12)
Net realized gains (losses) on other invested assets1 — 1 — 
Change in credit impairment and intent to sell (1)5 — 1 (15)
Net realized investment gains (losses) (2)$3 $13 $4 $12 
____________________
(1)    Change in credit impairment was a benefit in Third Quarter 2021 and Nine Months 2021 primarily due to lower delinquencies on loss mitigation securities. Change in credit impairment in Nine Months 2020 was related primarily to an increase in the allowance for credit loss on loss mitigation securities. Shut-downs due to COVID-19 pandemic restrictions contributed to the increase in the allowance for credit losses in Nine Months 2020.
(2)    Includes foreign currency losses of $2 million in Third Quarter 2021 and gains of $5 million in Third Quarter 2020 and $6 million in Nine Months 2020. Foreign currency losses were de minimis in Nine Months 2021.
Roll Forward of Credit Losses in the Investment Portfolio
The following table presents the roll forward of the credit losses on fixed-maturity securities for which the Company has recognized an allowance for credit losses in 2021 and 2020.

Roll Forward of Credit Losses in the Investment Portfolio
 Third QuarterNine Months
 2021202020212020
 (in millions)
Balance, beginning of period$39 $75 $78 $— 
Effect of adoption of accounting guidance on credit losses on January 1, 2020— — — 62 
Additions for securities for which credit impairments were not previously recognized— — 1 1 
Reductions for securities sold and other settlements— — (42)— 
Additions (reductions) for credit losses on securities for which credit impairments were previously recognized(4)1 (2)13 
Balance, end of period$35 $76 $35 $76