Investments (Tables)

9 Months Ended

Sep. 30, 2012

Available-For-Sale In Consolidated Investment Portfolio

	September 30, 2012
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	$	896	$	44	$	(1)	$	939	$	-
Foreign governments		318		22		-		340		-
Corporate obligations		1,068		59		(21)		1,106		3
Mortgage-backed securities:
Residential mortgage-backed agency		988		48		-		1,036		-
Residential mortgage-backed non-agency		187		16		(36)		167		(24)
Commercial mortgage-backed		46		1		(4)		43		-
Asset-backed securities:
Collateralized debt obligations		165		-		(74)		91		(26)
Other asset-backed		195		3		(14)		184		-
State and municipal bonds		895		73		(11)		957		-
Total taxable bonds		4,758		266		(161)		4,863		(47)
Tax-exempt bonds:
State and municipal bonds		886		60		-		946		-
Total fixed-maturity investments		5,644		326		(161)		5,809		(47)
Other investments:
Perpetual preferred securities		31		-		-		31		-
Other investments		10		-		-		10		-
Money market securities		583		-		-		583		-
Total other investments		624		-		-		624		-
Assets of consolidated VIEs:
Corporate obligations		177		7		(7)		177		-
Mortgage-backed securities:
Residential mortgage-backed non-agency		99		-		(12)		87		-
Asset-backed securities:
Collateralized debt obligations		108		-		(11)		97		-
Other asset-backed		25		1		-		26		-
State and municipal bonds		37		3		-		40		-
Other investments:
Money market securities		15		-		-		15		-
Total available-for-sale investments	$	6,729	$	337	$	(191)	$	6,875	$	(47)

(1) - Represents unrealized gains or losses on other than temporarily impaired securities recognized in accumulated other comprehensive income (loss), which includes the non-credit component of impairments, as well as all subsequent changes in fair value of such impaired securities.

	December 31, 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	$	1,091	$	39	$	-	$	1,130	$	-
Foreign governments		326		23		-		349		-
Corporate obligations		1,698		43		(106)		1,635		(2)
Mortgage-backed securities:
Residential mortgage-backed agency		1,198		47		-		1,245		-
Residential mortgage-backed non-agency		325		31		(83)		273		(57)
Commercial mortgage-backed		58		1		(10)		49		-
Asset-backed securities:
Collateralized debt obligations		251		-		(118)		133		(43)
Other asset-backed		520		2		(82)		440		(37)
State and municipal bonds		903		35		(17)		921		-
Total taxable bonds		6,370		221		(416)		6,175		(139)
Tax-exempt bonds:
State and municipal bonds		1,122		41		(2)		1,161		-
Total fixed-maturity investments		7,492		262		(418)		7,336		(139)
Other investments:
Perpetual preferred securities		127		-		(19)		108		-
Other investments		22		1		-		23		-
Money market securities		911		-		-		911		-
Total other investments		1,060		1		(19)		1,042		-
Assets of consolidated VIEs:
Corporate obligations		2		-		-		2		-
Mortgage-backed securities:
Residential mortgage-backed non-agency		119		-		(26)		93		-
Asset-backed securities:
Collateralized debt obligations		112		-		(15)		97		-
Other asset-backed		41		-		-		41		-
Other investments:
Money market securities		199		-		-		199		-
Total available-for-sale investments	$	9,025	$	263	$	(478)	$	8,810	$	(139)

(1)  - Represents unrealized gains or losses on other than temporarily impaired securities recognized in accumulated other comprehensive income (loss), which includes the non-credit component of impairments, as well as all subsequent changes in fair value of such impaired securities.

Available-For-Sale Securities In Continuous Unrealized Loss Position

	September 30, 2012
	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	$	197	$	(1)	$	-	$	-	$	197	$	(1)
Foreign governments		24		-		-		-		24		-
Corporate obligations		60		-		49		(21)		109		(21)
Mortgage-backed securities:
Residential mortgage-backed agency		8		-		41		-		49		-
Residential mortgage-backed non-agency		2		-		102		(36)		104		(36)
Commercial mortgage-backed		3		-		27		(4)		30		(4)
Asset-backed securities:
Collateralized debt obligations		2		-		83		(74)		85		(74)
Other asset-backed		1		-		88		(14)		89		(14)
State and municipal bonds		6		-		66		(11)		72		(11)
Total taxable bonds		303		(1)		456		(160)		759		(161)
Tax-exempt bonds:
State and municipal bonds		1		-		22		-		23		-
Total fixed-maturity investments		304		(1)		478		(160)		782		(161)
Other investments:
Perpetual preferred securities		-		-		3		-		3		-
Assets of consolidated VIEs:
Corporate obligations		-		-		54		(7)		54		(7)
Mortgage-backed securities:
Residential mortgage-backed non-agency		-		-		87		(12)		87		(12)
Asset-backed securities:
Collateralized debt obligations		-		-		96		(11)		96		(11)
Other asset-backed		-		-		3		-		3		-
Total	$	304	$	(1)	$	721	$	(190)	$	1,025	$	(191)

	December 31, 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	$	200	$	-	$	-	$	-	$	200	$	-
Foreign governments		20		-		-		-		20		-
Corporate obligations		297		(15)		418		(91)		715		(106)
Mortgage-backed securities:
Residential mortgage-backed agency		20		-		49		-		69		-
Residential mortgage-backed non-agency		34		(5)		167		(78)		201		(83)
Commercial mortgage-backed		17		(2)		22		(8)		39		(10)
Asset-backed securities:
Collateralized debt obligations		13		(2)		117		(116)		130		(118)
Other asset-backed		53		(7)		328		(75)		381		(82)
State and municipal bonds		152		(2)		76		(15)		228		(17)
Total taxable bonds		806		(33)		1,177		(383)		1,983		(416)
Tax-exempt bonds:
State and municipal bonds		14		-		75		(2)		89		(2)
Total fixed-maturity investments		820		(33)		1,252		(385)		2,072		(418)
Other investments:
Perpetual preferred securities		47		(3)		45		(16)		92		(19)
Assets of consolidated VIEs:
Corporate obligations		2		-		-		-		2		-
Mortgage-backed securities:
Residential mortgage-backed non-agency		3		-		90		(26)		93		(26)
Asset-backed securities:
Collateralized debt obligations		9		-		88		(15)		97		(15)
Other asset-backed		31		-		-		-		31		-
Total	$	912	$	(36)	$	1,475	$	(442)	$	2,387	$	(478)

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

																	Below
In millions	Aaa				Aa				A				Baa				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	$	9	$	-	$	-	$	-	$	4	$	-	$	-	$	-	$	17	$	(51)	$	-	$	-	$	30	$	(51)
Corporate CDO		29		(2)		64		(9)		-		-		-		-		91		(30)		19		(2)		203		(43)
Small business/ student loans		5		-		-		-		-		-		-		-		10		-		-		-		15		-
Other ABS		3		-		1		-		3		-		1		-		10		(2)		7		(3)		25		(5)
Total	$	46	$	(2)	$	65	$	(9)	$	7	$	-	$	1	$	-	$	128	$	(83)	$	26	$	(5)	$	273	$	(99)

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

																	Below
In millions	Aaa				Aa				A				Baa				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	$	41	$	-	$	24	$	-	$	-	$	-	$	-	$	-	$	30	$	(5)	$	14	$	(7)	$	109	$	(12)
Home equity		-		-		57		(10)		-		-		3		(1)		56		(21)		-		-		116		(32)
Pass-through securities		8		-		-		-		-		-		-		-		-		-		-		-		8		-
Other		-		-		8		(3)		-		-		-		-		-		-		-		-		8		(3)
CMBS		-		-		-		-		-		-		27		(4)		2		(1)		-		-		29		(5)
Total	$	49	$	-	$	89	$	(13)	$	-	$	-	$	30	$	(5)	$	88	$	(27)	$	14	$	(7)	$	270	$	(52)

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	$	-	$	-	$	4	$	-	$	74	$	(6)	$	59	$	(7)	$	14	$	(3)	$	12	$	(12)	$	163	$	(28)

Held To Maturity Securities In a Continuous Unrealized Loss Position

	September 30, 2012
	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	$	-	$	-	$	2,350	$	(168)	$	2,350	$	(168)
	December 31, 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	$	284	$	(31)	$	2,185	$	(340)	$	2,469	$	(371)

Investment Securities 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)
Greater than 5% to less than 16%		35	$	279	$	250
16% to less than 26%		23		791		621
26% to 50%		34		120		75
Greater than 50%		26		87		18
Total		118	$	1,277	$	964

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)	$	148	$	(63)	$	18
Other		27		(7)		-
Total asset-backed		175		(70)		18
Mortgage-backed:
MBIA(1)		10		(1)		-
Other		184		(43)		-
Total mortgage-backed		194		(44)		-
Corporate obligations:
Other		9		(12)		-
Total corporate obligations		9		(12)		-
Other:
MBIA(1)		72		(11)		-
Other		8		-		-
Total other		80		(11)		-
Total	$	458	$	(137)	$	18

(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.

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	$	828	$	830	$	7	$	7
Due after one year through five years		844		872		123		132
Due after five years through ten years		591		635		-		-
Due after ten years through fifteen years		437		468		84		78
Due after fifteen years		1,363		1,483		-		-
Mortgage-backed		1,221		1,246		99		87
Asset-backed		360		275		133		123
Total fixed-maturity investments	$	5,644	$	5,809	$	446	$	427

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		-		-		3,015		2,867
Total held-to-maturity investments	$	1	$	1	$	3,015	$	2,867

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