Investments (Tables)
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12 Months Ended |
Dec. 31, 2014
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Text Block [Abstract] |
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Amortized Cost And Fair Value Of Available-For-Sale And Held-To-Maturity Investment Portfolios |
| | | | | | December 31, 2014 | | | | | | | | | | Gross | | Gross | | | | | Other-Than- | | | | | | | Amortized | | Unrealized | | Unrealized | | Fair | | Temporary | In millions | | Cost | | Gains | | Losses | | Value | | Impairments(1) | AFS Investments | | | | | | | | | | | | | | | | Fixed-maturity investments: | | | | | | | | | | | | | | | | | U.S. Treasury and government agency | | $ | 631 | | $ | 39 | | $ | (3) | | $ | 667 | | $ | - | | State and municipal bonds | | | 1,644 | | | 94 | | | (8) | | | 1,730 | | | - | | Foreign governments | | | 283 | | | 7 | | | - | | | 290 | | | - | | Corporate obligations | | | 1,984 | | | 44 | | | (92) | | | 1,936 | | | (86) | | Mortgage-backed securities: | | | | | | | | | | | | | | | | | | Residential mortgage-backed agency | | | 1,116 | | | 17 | | | (7) | | | 1,126 | | | - | | | Residential mortgage-backed non-agency | | | 54 | | | 3 | | | (4) | | | 53 | | | (4) | | | Commercial mortgage-backed | | | 19 | | | 1 | | | - | | | 20 | | | - | | Asset-backed securities: | | | | | | | | | | | | | | | | | | Collateralized debt obligations | | | 113 | | | - | | | (21) | | | 92 | | | - | | | Other asset-backed | | | 231 | | | 3 | | | (12) | | | 222 | | | - | | | | Total fixed-maturity investments | | | 6,075 | | | 208 | | | (147) | | | 6,136 | | | (90) | Money market securities | | | 422 | | | - | | | - | | | 422 | | | - | Perpetual debt and equity securities | | | 12 | | | 1 | | | - | | | 13 | | | - | Total AFS investments | | $ | 6,509 | | $ | 209 | | $ | (147) | | $ | 6,571 | | $ | (90) | | | | | | | | | | | | | | | | | | | | | HTM Investments | | | | | | | | | | | | | | | | Assets of consolidated VIEs: | | | | | | | | | | | | | | | | | Corporate obligations | | $ | 2,757 | | $ | 77 | | $ | (202) | | $ | 2,632 | | $ | - | Total HTM investments | | $ | 2,757 | | $ | 77 | | $ | (202) | | $ | 2,632 | | $ | - | _______________ | | | | | | | | | | | | | | | | (1) - Represents unrealized gains or losses on OTTI securities recognized in AOCI, which includes the non-credit component of impairments, as well as all subsequent changes in fair value of such impaired securities reported in AOCI. |
| | | | | | December 31, 2013 | | | | | | | | | | Gross | | Gross | | | | | Other-Than- | | | | | | | Amortized | | Unrealized | | Unrealized | | Fair | | Temporary | In millions | | Cost | | Gains | | Losses | | Value | | Impairments(1) | AFS Investments | | | | | | | | | | | | | | | | Fixed-maturity investments: | | | | | | | | | | | | | | | | | U.S. Treasury and government agency | | $ | 528 | | $ | 16 | | $ | (9) | | $ | 535 | | $ | - | | State and municipal bonds | | | 1,831 | | | 22 | | | (73) | | | 1,780 | | | - | | Foreign governments | | | 184 | | | 5 | | | - | | | 189 | | | - | | Corporate obligations | | | 1,682 | | | 24 | | | (38) | | | 1,668 | | | - | | Mortgage-backed securities: | | | | | | | | | | | | | | | | | | Residential mortgage-backed agency | | | 1,167 | | | 10 | | | (31) | | | 1,146 | | | - | | | Residential mortgage-backed non-agency | | | 79 | | | 13 | | | (5) | | | 87 | | | 4 | | | Commercial mortgage-backed | | | 34 | | | 1 | | | (1) | | | 34 | | | - | | Asset-backed securities: | | | | | | | | | | | | | | | | | | Collateralized debt obligations | | | 205 | | | 3 | | | (57) | | | 151 | | | (14) | | | Other asset-backed | | | 187 | | | 2 | | | (15) | | | 174 | | | - | | | | Total fixed-maturity investments | | | 5,897 | | | 96 | | | (229) | | | 5,764 | | | (10) | Money market securities | | | 781 | | | - | | | - | | | 781 | | | - | Perpetual debt and equity securities | | | 10 | | | 1 | | | - | | | 11 | | | - | Assets of consolidated VIEs: | | | | | | | | | | | | | | | | | Money market securities | | | 136 | | | - | | | - | | | 136 | | | - | Total AFS investments | | $ | 6,824 | | $ | 97 | | $ | (229) | | $ | 6,692 | | $ | (10) | | | | | | | | | | | | | | | | | | | | | HTM Investments | | | | | | | | | | | | | | | | Assets of consolidated VIEs: | | | | | | | | | | | | | | | | | Corporate obligations | | $ | 2,801 | | $ | 31 | | $ | (181) | | $ | 2,651 | | $ | - | Total HTM investments | | $ | 2,801 | | $ | 31 | | $ | (181) | | $ | 2,651 | | $ | - | _______________ | | | | | | | | | | | | | | | | (1) - Represents unrealized gains or losses on OTTI securities recognized in AOCI, which includes the non-credit component of impairments, as well as all subsequent changes in fair value of such impaired securities reported in AOCI. |
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Distribution By Contractual Maturity Of Available-For-Sale and Held-To-Maturity Investments |
| | AFS Securities | | HTM Securities | | | | | | | | | Consolidated VIEs | | | Amortized | | | | | Amortized | | | | In millions | | Cost | | Fair Value | | Cost | | Fair Value | Due in one year or less | | $ | 806 | | $ | 806 | | $ | - | | $ | - | Due after one year through five years | | | 1,388 | | | 1,412 | | | - | | | - | Due after five years through ten years | | | 889 | | | 914 | | | - | | | - | Due after ten years | | | 1,459 | | | 1,491 | | | 2,757 | | | 2,632 | Mortgage-backed and asset-backed | | | 1,533 | | | 1,513 | | | - | | | - | Total fixed-maturity investments | | $ | 6,075 | | $ | 6,136 | | $ | 2,757 | | $ | 2,632 |
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Gross Unrealized Losses Related To Available-For-Sale And Held-To-Maturity Investments |
| | | | | | December 31, 2014 | | | | | | | Less than 12 Months | | 12 Months or Longer | | Total | | | | | | | Fair | | Unrealized | | Fair | | Unrealized | | Fair | | Unrealized | In millions | | Value | | Losses | | Value | | Losses | | Value | | Losses | AFS Investments | | | | | | | | | | | | | | | | | | | Fixed-maturity investments: | | | | | | | | | | | | | | | | | | | | U.S. Treasury and government agency | | $ | 197 | | $ | - | | $ | 175 | | $ | (3) | | $ | 372 | | $ | (3) | | State and municipal bonds | | | 60 | | | (1) | | | 257 | | | (7) | | | 317 | | | (8) | | Foreign governments | | | 20 | | | - | | | - | | | - | | | 20 | | | - | | Corporate obligations | | | 468 | | | (1) | | | 251 | | | (91) | | | 719 | | | (92) | | Mortgage-backed securities: | | | | | | | | | | | | | | | | | | | | | Residential mortgage-backed agency | | | 16 | | | - | | | 387 | | | (7) | | | 403 | | | (7) | | | Residential mortgage-backed non-agency | | | 10 | | | - | | | 19 | | | (4) | | | 29 | | | (4) | | | Commercial mortgage-backed | | | 4 | | | - | | | 6 | | | - | | | 10 | | | - | | Asset-backed securities: | | | | | | | | | | | | | | | | | | | | | Collateralized debt obligations | | | 1 | | | - | | | 81 | | | (21) | | | 82 | | | (21) | | | Other asset-backed | | | 69 | | | - | | | 44 | | | (12) | | | 113 | | | (12) | | | | Total fixed-maturity investments | | | 845 | | | (2) | | | 1,220 | | | (145) | | | 2,065 | | | (147) | Perpetual debt and equity securities | | | 6 | | | - | | | - | | | - | | | 6 | | | - | Total AFS investments | | $ | 851 | | $ | (2) | | $ | 1,220 | | $ | (145) | | $ | 2,071 | | $ | (147) | | | | | | | | | | | | | | | | | | | | | | | | HTM Investments | | | | | | | | | | | | | | | | | | | Assets of consolidated VIEs: | | | | | | | | | | | | | | | | | | | | Corporate obligations | | $ | - | | $ | - | | $ | 373 | | $ | (202) | | $ | 373 | | $ | (202) | Total HTM investments | | $ | - | | $ | - | | $ | 373 | | $ | (202) | | $ | 373 | | $ | (202) |
| | | | | | December 31, 2013 | | | | | | | Less than 12 Months | | 12 Months or Longer | | Total | | | | | | | Fair | | Unrealized | | Fair | | Unrealized | | Fair | | Unrealized | In millions | | Value | | Losses | | Value | | Losses | | Value | | Losses | AFS Investments | | | | | | | | | | | | | | | | | | | Fixed-maturity investments: | | | | | | | | | | | | | | | | | | | | U.S. Treasury and government agency | | $ | 269 | | $ | (9) | | $ | 1 | | $ | - | | $ | 270 | | $ | (9) | | State and municipal bonds | | | 1,112 | | | (65) | | | 49 | | | (8) | | | 1,161 | | | (73) | | Foreign governments | | | 36 | | | - | | | - | | | - | | | 36 | | | - | | Corporate obligations | | | 788 | | | (30) | | | 82 | | | (8) | | | 870 | | | (38) | | Mortgage-backed securities: | | | | | | | | | | | | | | | | | | | | | Residential mortgage-backed agency | | | 713 | | | (23) | | | 144 | | | (8) | | | 857 | | | (31) | | | Residential mortgage-backed non-agency | | | 17 | | | - | | | 22 | | | (5) | | | 39 | | | (5) | | | Commercial mortgage-backed | | | 11 | | | (1) | | | - | | | - | | | 11 | | | (1) | | Asset-backed securities: | | | | | | | | | | | | | | | | | | | | | Collateralized debt obligations | | | 6 | | | - | | | 124 | | | (57) | | | 130 | | | (57) | | | Other asset-backed | | | 21 | | | - | | | 57 | | | (15) | | | 78 | | | (15) | | | | Total fixed-maturity investments | | | 2,973 | | | (128) | | | 479 | | | (101) | | | 3,452 | | | (229) | Perpetual debt and equity securities | | | 5 | | | - | | | - | | | - | | | 5 | | | - | Total AFS investments | | $ | 2,978 | | $ | (128) | | $ | 479 | | $ | (101) | | $ | 3,457 | | $ | (229) | | | | | | | | | | | | | | | | | | | | | | | | HTM Investments | | | | | | | | | | | | | | | | | | | Assets of consolidated VIEs: | | | | | | | | | | | | | | | | | | | | Corporate obligations | | $ | - | | $ | - | | $ | 1,244 | | $ | (181) | | $ | 1,244 | | $ | (181) | Total HTM investments | | $ | - | | $ | - | | $ | 1,244 | | $ | (181) | | $ | 1,244 | | $ | (181) |
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Distribution Of Securities By Percentage Of Fair Value Below Book Value By More Than 5% |
| | | AFS Securities | | HTM Securities | | Percentage of Fair Value | | Number of | | Book Value | | Fair Value | | Number of | | Book Value | | Fair Value | | Below Book Value | | Securities | | (in millions) | | (in millions) | | Securities | | (in millions) | | (in millions) | | > 5% to 15% | | 12 | | $ | 58 | | $ | 53 | | - | | $ | - | | $ | - | | > 15% to 25% | | 5 | | | 78 | | | 61 | | - | | | - | | | - | | > 25% to 50% | | 2 | | | 1 | | | 1 | | 1 | | | 575 | | | 373 | | > 50% | | 3 | | | 129 | | | 25 | | - | | | - | | | - | | Total | | 22 | | $ | 266 | | $ | 140 | | 1 | | $ | 575 | | $ | 373 |
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Fair Values And Gross Unrealized Losses By Credit Rating Category Of ABS, MBS and Corporate Obligations |
| | | | | | | | | | | | | | | | | | | | | | | | | | | Below | | | | | | | | | | | | | In millions | | Aaa | | Aa | | A | | Baa | | Investment Grade | | Not Rated | | Total | | | | Fair | | Unrealized | | Fair | | Unrealized | | Fair | | Unrealized | | Fair | | Unrealized | | Fair | | Unrealized | | Fair | | Unrealized | | Fair | | Unrealized | Asset Type | | Value | | Loss | | Value | | Loss | | Value | | Loss | | Value | | Loss | | Value | | Loss | | Value | | Loss | | Value | | Loss | ABS | | $ | 58 | | $ | - | | $ | 55 | | $ | (2) | | $ | 9 | | $ | - | | $ | 4 | | $ | - | | $ | 69 | | $ | (31) | | $ | - | | $ | - | | $ | 195 | | $ | (33) | MBS | | | 412 | | | (7) | | | 2 | | | - | | | 1 | | | - | | | 3 | | | - | | | 9 | | | - | | | 15 | | | (4) | | | 442 | | | (11) | Corporate obligations | | | 249 | | | - | | | 201 | | | (2) | | | 203 | | | (3) | | | 40 | | | (1) | | | 3 | | | - | | | 23 | | | (86) | | | 719 | | | (92) | | Total | | $ | 719 | | $ | (7) | | $ | 258 | | $ | (4) | | $ | 213 | | $ | (3) | | $ | 47 | | $ | (1) | | $ | 81 | | $ | (31) | | $ | 38 | | $ | (90) | | $ | 1,356 | | $ | (136) |
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Average Credit Ratings and Fair Value and Percentage Of Guaranteed ABS MBS and Corporate Obligations Below Investment Grade |
| | | | | | Insured Securities Rated Below | | | | | | | Investment Grade without the | | | | | | | Effect of Guarantee | | | Average Credit Rating with the | | Average Credit Rating without the | | (in millions) | | | | Asset Type | | Effect of Guarantee | | Effect of Guarantee | | Fair Value | | Percentage | ABS | | Baa | | Below Investment Grade | | $ | 67 | | 56 | % | MBS | | Below Investment Grade | | Below Investment Grade | | | 5 | | 100 | % |
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Securities Held In Unrealized Loss Position And Insured By Financial Guarantor and The Related Insurance Loss Reserve On Company Insured Investments |
| | | | | | | Unrealized | | Insurance Loss | | | In millions | | Fair Value | | Loss | | Reserve (2) | | | Asset-backed: | | | | | | | | | | | | | MBIA(1) | | $ | 113 | | $ | (31) | | $ | 38 | | | | Other | | | 8 | | | (2) | | | - | | | | | Total asset-backed | | | 121 | | | (33) | | | 38 | | | Mortgage-backed: | | | | | | | | | | | | | MBIA(1) | | | 4 | | | - | | | 1 | | | | Other | | | 1 | | | - | | | - | | | | | Total mortgage-backed | | | 5 | | | - | | | 1 | | | Other: | | | | | | | | | | | | | MBIA(1) | | | 21 | | | (4) | | | - | | | | | Total other | | | 21 | | | (4) | | | - | | | Total | | $ | 147 | | $ | (37) | | $ | 39 | | | _______________ | | | | | | | | | | | | (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. | |
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Credit Losses Recognized In Earnings Related To OTTI Losses Recognized In Accumulated Other Comprehensive Income (Loss) |
In millions | | Years Ended December 31, | | Credit Losses Recognized in Earnings Related to OTTI | | 2014 | | 2013 | | 2012 | | Beginning balance | | $ | 175 | | $ | 197 | | $ | 341 | | Additions for credit loss impairments recognized in the | | | | | | | | | | | | current period on securities not previously impaired | | | 15 | | | - | | | - | | Additions for credit loss impairments recognized in the | | | | | | | | | | | | current period on securities previously impaired | | | 1 | | | - | | | 8 | | Reductions for credit loss impairments previously recognized | | | | | | | | | | | | on securities sold during the period | | | (174) | | | (16) | | | (41) | | Reductions for credit loss impairments previously recognized on securities | | | | | | | | | | | | impaired to fair value during the period(1) | | | - | | | - | | | (111) | | Reductions for increases in cash flows expected to be collected over the | | | | | | | | | | | | remaining life of the security | | | (1) | | | (6) | | | - | | Ending balance | | $ | 16 | | $ | 175 | | $ | 197 | | _______________ | | (1) - Represents circumstances where the Company determined in the current period that it intends to sell the security or it is more likely than not that it will be | | required to sell the security before recovery of the security's amortized cost. | | | | | | | | | | | |
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Gross Realized Gains and Losses From Sales Of Available-For-Sale Securities |
| | | | Years Ended December 31, | | | In millions | | 2014 | | 2013 | | 2012 | | | Proceeds from sales | | $ | 757 | | $ | 1,726 | | $ | 4,658 | | | Gross realized gains | | $ | 66 | | $ | 57 | | $ | 196 | | | Gross realized losses | | $ | (15) | | $ | (29) | | $ | (127) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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