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Investments (Tables)
 9 Months Ended
Sep. 30, 2023
Investments, Debt and Equity Securities [Abstract]  
Marketable Securities
Investment Portfolio
Carrying Value
As of
September 30, 2023December 31, 2022
 (in millions)
Fixed-maturity securities, available-for-sale (1):
Externally managed (2)$5,316 $5,824 
Loss Mitigation Securities495 548 
Puerto Rico, New Recovery Bonds (3) 78 358 
Other (4)378 389 
Fixed-maturity securities, trading - Puerto Rico, CVIs (3) 350 303 
Short-term investments
1,426 810 
Other invested assets:
Equity method investments:
Sound Point
419 — 
Alternative investments (5)331 123 
Other15 10 
Total$8,808 $8,365 
____________________
(1)    7.6% and 7.4% of fixed-maturity securities were rated BIG as of September 30, 2023 and December 31, 2022, respectively, consisting primarily of Loss Mitigation Securities. 2.4% and 5.9% were not rated, as of September 30, 2023 and December 31, 2022, respectively.
(2)    As of September 30, 2023 and December 31, 2022 amounts include $294 million and $305 million, respectively, of CLOs that had been managed internally by AssuredIM under an investment management agreement until it transitioned to an external manager in June 2023.
(3)    These securities are not rated. On August 31, 2023, the Company satisfied its obligations under certain Puerto Rico Trusts and as a result $68 million, at fair value, of Puerto Rico New Recovery Bonds and $5 million, at fair value, of CVIs were transferred from the consolidated Puerto Rico Trusts to AGC and AGM’s investment portfolios. See Note 3, Outstanding Exposure.
(4)    As of September 30, 2023 and December 31, 2022, amounts include $214 million and $232 million, respectively, of municipal bonds that had been managed by AssuredIM under an investment management agreement until June 2023, and are now managed by the U.S. Insurance Subsidiaries for their own accounts.
(5)     Excludes certain investments in funds that are consolidated and accounted for as CIVs. See Note 8, Financial Guaranty Variable Interest Entities and Consolidated Investment Vehicles.
Fixed Maturity Securities and Short Term Investments by Security Type
Available-for-Sale Fixed-Maturity Securities by Security Type 
As of September 30, 2023
Security TypePercent
of
Total (1)		Amortized
Cost		Allowance for Credit LossesGross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair
Value
 (dollars in millions)
Obligations of state and political subdivisions42 %$2,938 $(14)$20 $(178)$2,766 
U.S. government and agencies1 65 — — (7)58 
Corporate securities (2)
33 2,321 (6)1 (307)2,009 
Mortgage-backed securities (3):
 
RMBS6 430 (20)2 (82)330 
Commercial mortgage-backed securities (CMBS)3 198 — — (10)188 
Asset-backed securities:
CLOs7 463 — 1 (10)454 
Other6 440 (46)6 (31)369 
Non-U.S. government securities2 116 — — (23)93 
Total available-for-sale fixed-maturity securities100 %$6,971 $(86)$30 $(648)$6,267 

Available-for-Sale Fixed-Maturity Securities by Security Type 
As of December 31, 2022 
Security TypePercent
of
Total (1)		Amortized
Cost		Allowance for Credit LossesGross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair
Value
 (dollars in millions)
Obligations of state and political subdivisions45 %$3,509 $(14)$37 $(138)$3,394 
U.S. government and agencies2 118 — 1 (8)111 
Corporate securities (2)
31 2,387 (6)2 (299)2,084 
Mortgage-backed securities (3):
    
RMBS5 418 (19)3 (62)340 
CMBS4 282 — — (11)271 
Asset-backed securities:
CLOs6 449 — — (21)428 
Other5 423 (26)22 (26)393 
Non-U.S. government securities2 121 — — (23)98 
Total available-for-sale fixed-maturity securities100 %$7,707 $(65)$65 $(588)$7,119 
____________________
(1)Based on amortized cost.
(2)Includes securities issued by taxable universities and hospitals.
(3)U.S. government-agency obligations were approximately 38% and 30% of mortgage-backed securities as of September 30, 2023 and December 31, 2022, respectively, based on fair value.
Fixed-Maturity Securities Gross Unrealized Loss by Length of Time
Gross Unrealized Loss by Length of Time
for Available-for-Sale Fixed-Maturity Securities for Which a Credit Loss was Not Recorded
As of September 30, 2023  

 Less than 12 months12 months or moreTotal
 Fair
Value		Gross Unrealized
Loss		Fair
Value		Gross Unrealized
Loss		Fair
Value		Gross Unrealized
Loss
 (dollars in millions)
Obligations of state and political subdivisions$1,610 $(39)$899 $(136)$2,509 $(175)
U.S. government and agencies21 — 32 (7)53 (7)
Corporate securities381 (14)1,396 (236)1,777 (250)
Mortgage-backed securities: 
RMBS55 (3)122 (14)177 (17)
CMBS3 — 184 (10)187 (10)
Asset-backed securities:
CLOs18 (2)402 (8)420 (10)
Other1 — 26 (2)27 (2)
Non-U.S. government securities4 — 89 (23)93 (23)
Total$2,093 $(58)$3,150 $(436)$5,243 $(494)
Number of securities (1) 795  1,308  2,079 
 
Gross Unrealized Loss by Length of Time
for Available-for-Sale Fixed-Maturity Securities for Which a Credit Loss was Not Recorded
As of December 31, 2022

 Less than 12 months12 months or moreTotal
 Fair
Value		Gross Unrealized
Loss		Fair
Value		Gross Unrealized
Loss		Fair
Value		Gross Unrealized
Loss
 (dollars in millions)
Obligations of state and political subdivisions$1,763 $(79)$163 $(56)$1,926 $(135)
U.S. government and agencies32 — 52 (8)84 (8)
Corporate securities1,276 (95)519 (147)1,795 (242)
Mortgage-backed securities:    
RMBS147 (9)3 (1)150 (10)
CMBS270 (11)— — 270 (11)
Asset-backed securities:
CLOs171 (7)250 (14)421 (21)
Other27 (2)— — 27 (2)
Non-U.S. government securities65 (10)30 (13)95 (23)
Total$3,751 $(213)$1,017 $(239)$4,768 $(452)
Number of securities (1) 1,340  466  1,776 
___________________
(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, 2023 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 Available-for-Sale Fixed-Maturity Securities by Contractual Maturity
As of September 30, 2023
 Amortized
Cost		Estimated
Fair Value
 (in millions)
Due within one year$248 $239 
Due after one year through five years1,526 1,406 
Due after five years through 10 years1,760 1,629 
Due after 10 years2,809 2,475 
Mortgage-backed securities:  
RMBS430 330 
CMBS198 188 
Total$6,971 $6,267 
New Recovery Bonds, Available-for-Sale
Reported in FG VIEs’ Assets
Distribution by Contractual Maturity
As of September 30, 2023
 Amortized
Cost		Estimated
Fair Value
 (in millions)
Due after five years through 10 years$28 $30 
Due after 10 years108 116 
Total$136 $146 
Net Investment Income
Income from Investments
 Third QuarterNine Months
 2023202220232022
(in millions)
Investment income:
Fixed-maturity securities, available-for-sale:
Externally managed (1)$51 $50 $156 $150 
Loss Mitigation Securities24 9 46 24 
Puerto Rico, New Recovery Bonds 1 1 5 5 
Other (2)5 4 12 11 
Short-term investments21 4 53 5 
Other invested assets— — 2 — 
Investment income102 68 274 195 
Investment expenses(2)(1)(4)(4)
Net investment income$100 $67 $270 $191 
Fair value gains (losses) on trading securities (3)$4 $(8)$42 $(30)
Equity in earnings (losses) of investees (4)18 (20)25 (31)
____________________
(1)    Amounts for 2022 include income on the portion of the CLO portfolio that was previously managed by AssuredIM.
(2)    Amounts for 2022 include income on the portion of the municipal bond portfolio that was previously managed by AssuredIM.
(3)    Fair value gains on trading securities pertaining to securities still held as of September 30, 2023 were $4 million for third quarter 2023 and $42 million for nine months 2023. Fair value losses on trading securities pertaining to securities still held as of September 30, 2022 were $2 million for third quarter 2022 and $18 million for nine months 2022.
(4)     Beginning in the fourth quarter of 2023, equity in earnings (losses) will include the Company’s share of the earnings of the Sound Point entities, which is reported on a one-quarter lag.
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
 2023202220232022
 (in millions)
Gross realized gains on sales of available-for-sale securities (1)$2 $— $21 $— 
Gross realized losses on sales of available-for-sale securities (1)(1)(10)(16)(33)
Net foreign currency gains (losses)(1)— (1)(3)
Change in allowance for credit losses and intent to sell (8)(4)(23)(13)
Other net realized gains (losses)(1)— (1)10 
Net realized investment gains (losses)$(9)$(14)$(20)$(39)
____________________
(1)    Gross realized gains and losses on sales in all periods related primarily to sales of New Recovery Bonds received as part of the 2022 Puerto Rico Resolutions.
Rollforward of Credit Losses for Available-for-sale Fixed-Maturity Securities
The following table presents the roll forward of allowance for the credit losses on available-for-sale fixed-maturity securities.

Roll Forward of Allowance for
Credit Losses for Available-for-Sale Fixed-Maturity Securities
 Third QuarterNine Months
 2023202220232022
 (in millions)
Balance, beginning of period$79 $51 $65 $42 
Additions for securities for which credit losses were not previously recognized— 1 — 4 
Additions for purchases of securities accounted for as purchased financial assets with credit deterioration— 2 — 2 
Additions (reductions) for securities for which credit losses were previously recognized7 3 21 9 
Balance, end of period$86 $57 $86 $57