Investments (Tables)

9 Months Ended

Sep. 30, 2011

Available For Sale In Consolidated Investment Portfolio

	September 30, 2011
In millions	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Other-Than- Temporary Impairments(1)
Fixed-maturity investments:
Taxable bonds:
U.S. Treasury and government agency	$	825	$	59	$	-	$	884	$	-
Foreign governments		354		22		-		376		-
Corporate obligations		1,895		54		(109)		1,840		-
Mortgage-backed securities:
Residential mortgage-backed agency		1,322		56		-		1,378		-
Residential mortgage-backed non-agency		387		44		(85)		346		(127)
Commercial mortgage-backed		63		1		(8)		56
Asset-backed securities:
Collateralized debt obligations		271		-		(123)		148		(70)
Other asset-backed		595		2		(148)		449		-
State and municipal bonds		804		55		(11)		848		-
Total taxable bonds		6,516		293		(484)		6,325		(197)
Tax-exempt bonds:
State and municipal bonds		2,771		80		(10)		2,841		-
Total tax-exempt bonds		2,771		80		(10)		2,841		-
Total fixed-maturity investments		9,287		373		(494)		9,166		(197)
Other investments:
Perpetual preferred securities		178		-		(31)		147		-
Other investments		26		2		-		28		-
Money market securities		689		-		-		689		-
Total other investments		893		2		(31)		864		-
Assets of consolidated VIEs:
Corporate obligations		2		-		-		2		-
Mortgage-backed securities:
Residential mortgage-backed non-agency		124		-		(28)		96		-
Asset-backed securities:
Collateralized debt obligations		185		-		(14)		171		-
Other asset-backed		45		-		-		45		-
Other investments:
Money market securities		218		-		-		218		-
Total available-for-sale investments	$	10,754	$	375	$	(567)	$	10,562	$	(197)

(1) - Represents the amount of other-than-temporary losses recognized in accumulated other comprehensive income (loss) since the adoption of the accounting guidance for other-than-temporary impairments.

	December 31, 2010
In millions	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Other-Than- Temporary Impairments  (1)
Fixed-maturity investments:
Taxable bonds:
U.S. Treasury and government agency	$	1,055	$	12	$	(3)	$	1,064	$	-
Foreign governments		451		19		(1)		469		-
Corporate obligations		2,922		49		(127)		2,844		-
Mortgage-backed securities:
Residential mortgage-backed agency		1,537		39		(13)		1,563		-
Residential mortgage-backed non-agency		627		36		(180)		483		(155)
Commercial mortgage-backed		199		24		(19)		204		-
Asset-backed securities:
Collateralized debt obligations		472		1		(180)		293		(86)
Other asset-backed		732		1		(112)		621		-
State and municipal bonds		797		7		(52)		752		-
Total taxable bonds		8,792		188		(687)		8,293		(241)
Tax-exempt bonds:
State and municipal bonds		2,907		19		(104)		2,822		-
Total tax-exempt bonds		2,907		19		(104)		2,822		-
Total fixed-maturity investments		11,699		207		(791)		11,115		(241)
Other investments:
Perpetual preferred securities		195		8		(12)		191		-
Other investments		38		3		-		41		-
Money market securities		552		-		-		552		-
Total other investments		785		11		(12)		784		-
Assets of consolidated VIEs:
Asset-backed securities:
Collateralized debt obligations		91		-		(1)		90		-
Other asset-backed		98		2		-		100		-
Other investments:
Money market securities		149		-		-		149		-
Total available-for-sale investments	$	12,822	$	220	$	(804)	$	12,238	$	(241)

(1) - Represents the amount of other-than-temporary losses recognized in accumulated other comprehensive income (loss) since the adoption of the accounting guidance for other-than-temporary impairments.

Available For Sale Securities In Continuous Unrealized Loss Position

	September 30, 2011
	Less than 12 Months				12 Months or Longer				Total
In millions	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Fixed-maturity investments:
Taxable bonds:
U.S. Treasury and government agency	$	16	$	-	$	-	$	-	$	16	$	-
Foreign governments		31		-		-		-		31		-
Corporate obligations		277		(8)		497		(101)		774		(109)
Mortgage-backed securities:
Residential mortgage-backed agency		22		-		51		-		73		-
Residential mortgage-backed non-agency		57		(5)		181		(80)		238		(85)
Commercial mortgage-backed		18		(2)		24		(6)		42		(8)
Asset-backed securities:
Collateralized debt obligations		14		(2)		130		(121)		144		(123)
Other asset-backed		82		(12)		318		(136)		400		(148)
State and municipal bonds		-		-		79		(11)		79		(11)
Total taxable bonds		517		(29)		1,280		(455)		1,797		(484)
Tax-exempt bonds:
State and municipal bonds		182		(3)		162		(7)		344		(10)
Total tax-exempt bonds		182		(3)		162		(7)		344		(10)
Total fixed-maturity investments		699		(32)		1,442		(462)		2,141		(494)
Other investments:
Perpetual preferred securities		49		(4)		83		(27)		132		(31)
Total other investments		49		(4)		83		(27)		132		(31)
Assets of consolidated VIEs:
Mortgage-backed securities:
Residential mortgage-backed non-agency		4		-		93		(28)		97		(28)
Asset-backed securities:
Collateralized debt obligations		69		(1)		102		(13)		171		(14)
Other asset-backed		8		-		-		-		8		-
Total	$	829	$	(37)	$	1,720	$	(530)	$	2,549	$	(567)

	December 31, 2010
	Less than 12 Months				12 Months or Longer				Total
In millions	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Fixed-maturity investments:
Taxable bonds:
U.S. Treasury and government agency	$	370	$	(3)	$	-	$	-	$	370	$	(3)
Foreign governments		33		(1)		-		-		33		(1)
Corporate obligations		685		(13)		725		(114)		1,410		(127)
Mortgage-backed securities:
Residential mortgage-backed agency		785		(11)		59		(2)		844		(13)
Residential mortgage-backed non-agency		51		(2)		336		(178)		387		(180)
Commercial mortgage-backed		11		-		85		(19)		96		(19)
Asset-backed securities:
Collateralized debt obligations		3		-		278		(180)		281		(180)
Other asset-backed		61		(2)		480		(110)		541		(112)
State and municipal bonds		437		(26)		135		(26)		572		(52)
Total taxable bonds		2,436		(58)		2,098		(629)		4,534		(687)
Tax-exempt bonds:
State and municipal bonds		2,002		(83)		181		(21)		2,183		(104)
Total tax-exempt bonds		2,002		(83)		181		(21)		2,183		(104)
Total fixed-maturity investments		4,438		(141)		2,279		(650)		6,717		(791)
Other investments:
Perpetual preferred securities		20		-		140		(12)		160		(12)
Other investments		3		-		-		-		3		-
Total other investments		23		-		140		(12)		163		(12)
Assets of consolidated VIEs:
Asset-backed securities:
Collateralized debt obligations		62		(1)		5		-		67		(1)
Other asset-backed		7		-		-		-		7		-
Total	$	4,530	$	(142)	$	2,424	$	(662)	$	6,954	$	(804)

Fair Values And Gross Unrealized Losses By Credit Rating Category Of Asset Backed Securities

In millions	Aaa				Aa				A				Baa				Below Investment Grade				Not Rated				Total
Asset-backed Sector	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
ABS CDO	$	74	$	(1)	$	5	$	-	$	7	$	(2)	$	1	$	(3)	$	29	$	(55)	$	-	$	-	$	116	$	(61)
Corporate CDO		48		(7)		13		(1)		69		(10)		21		(9)		61		(59)		24		(4)		236		(90)
Auto loans		-		-		2		-		-		-		-		-		13		-		-		-		15		-
Credit cards		3		-		-		-		-		-		-		-		-		-		-		-		3		-
Equipment leases		1		-		-		-		-		-		29		(3)		-		-		-		-		30		(3)
Small business/ student loans		18		(3)		-		-		-		-		-		-		12		(1)		-		-		30		(4)
Other ABS		12		-		32		(4)		58		(11)		43		(6)		115		(9)		33		(97)		293		(127)
Total	$	156	$	(11)	$	52	$	(5)	$	134	$	(23)	$	94	$	(21)	$	230	$	(124)	$	57	$	(101)	$	723	$	(285)

Fair Values And Gross Unrealized Losses By Credit Rating Category Of Mortgage Backed Securities

In millions	Aaa				Aa				A				Baa				Below Investment Grade				Not Rated				Total
Mortgage-backed Securities	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
RMBS:
Collateralized	$	66	$	(1)	$	45	$	(10)	$	10	$	(1)	$	2	$	-	$	51	$	(26)	$	-	$	-	$	174	$	(38)
Home equity		3		-		81		(25)		1		-		-		-		87		(43)		23		-		195		(68)
Pass-through securities		22		-		-		-		-		-		-		-		-		-		-		-		22		-
Other		-		-		17		(4)		-		-		-		-		8		(4)		-		-		25		(8)
CMBS		2		-		1		-		4		-		25		(6)		2		(1)		-		-		34		(7)
Total	$	93	$	(1)	$	144	$	(39)	$	15	$	(1)	$	27	$	(6)	$	148	$	(74)	$	23	$	-	$	450	$	(121)

Fair Values And Gross Unrealized Losses By Credit Rating Category Of Corporate Obligations

In millions	Aaa				Aa					A					Baa					Below Investment Grade					Not Rated					Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Corporate Obligations	$	70	$	-	$	156	$	(26	)	$	189	$	(26	)	$	232	$	(27	)	$	104	$	(24	)	$	23	$	(6	)	$	774	$	(109	)

Held To Maturity Securities In Continuous Unrealized Loss Position

	September 30, 2011
	Less than 12 Months					12 Months or Longer					Total
In millions	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Assets of consolidated VIEs:
Other asset-backed securities	$	283	$	(31	)	$	2,872	$	(363	)	$	3,155	$	(394	)
Total	$	283	$	(31	)	$	2,872	$	(363	)	$	3,155	$	(394	)
	December 31, 2010
	Less than 12 Months					12 Months or Longer					Total
In millions	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Assets of consolidated VIEs:
Other asset-backed securities	$	-	$	-		$	3,760	$	(279	)	$	3,760	$	(279	)
Total	$	-	$	-		$	3,760	$	(279	)	$	3,760	$	(279	)

Investment Securities, Unrealized Loss Position For Longer Than 12 Months Whose Book Value Exceeded Market Value By More Than 5%

Percentage Book Value Exceeded Market Value	Number of   Securities		Book Value   (in millions)		Fair Value   (in millions)
5% to 15%		52	$	2,358	$	2,136
16% to 25%		51		1,096		860
26% to 50%		79		556		370
Greater than 50%		33		245		60
Total		215	$	4,255	$	3,426

Securities Held In Unrealized Loss Position And Insured By Financial Guarantor And The Related Insurance Loss Reserve On Company Insured Investments

In millions	Fair Value		Unrealized Loss			Insurance Loss Reserve (2)
Asset-backed:
MBIA(1)	$	323	$	(80	)	$	22
Other		119		(24	)		-
Total asset-backed		442		(104	)		22
Mortgage-backed:
MBIA(1)		18		(5	)		1
Other		259		(97	)		-
Total mortgage-backed		277		(102	)		1
Corporate obligations:
MBIA(1)		135		(19	)		-
Other		54		(13	)		-
Total corporate obligations		189		(32	)		-
Other:
MBIA(1)		155		(14	)		-
Other		86		(3	)		-
Total other		241		(17	)		-
Total	$	1,149	$	(255	)	$	23

(1)  - Includes investments insured by MBIA Corp. and National.

(2)  - Insurance loss reserve estimates are based on the proportion of par value owned to the total amount of par value insured.

Held To Maturity [Member]

Distribution Of Investments By Contractual Maturity

					Consolidated VIEs
In millions	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	-	$	-	$	-	$	-
Due after one year through five years(1)		1		1		-		-
Due after five years through ten years		-		-		-		-
Due after ten years through fifteen years		-		-		-		-
Due after fifteen years		-		-		-		-
Mortgage-backed		-		-		-		-
Asset-backed		-		-		3,886		3,492
Total held-to-maturity investments	$	1	$	1	$	3,886	$	3,492

(1) - Relates to tax credit investments reported in "Other investments" on the Company's consolidated balance sheets.

Available For Sale [Member]

Distribution Of Investments By Contractual Maturity

					Consolidated VIEs
In millions	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	721	$	723	$	-	$	-
Due after one year through five years		1,147		1,170		2		2
Due after five years through ten years		1,014		1,052		-		-
Due after ten years through fifteen years		826		846		-		-
Due after fifteen years		2,941		2,998		-		-
Mortgage-backed		1,772		1,780		124		96
Asset-backed		866		597		230		216
Total fixed-maturity investments	$	9,287	$	9,166	$	356	$	314