Investments (Tables)

9 Months Ended

Sep. 30, 2016

Text Block [Abstract]

Amortized Cost And Fair Value Of Available-For-Sale And Held-To-Maturity Investment Portfolios

				September 30, 2016
						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			$	1,109	$	63	$	(1)	$	1,171	$	-
	State and municipal bonds				1,474		117		(3)		1,588		-
	Foreign governments				165		3		(1)		167		-
	Corporate obligations				1,707		63		(81)		1,689		(78)
	Mortgage-backed securities:
		Residential mortgage-backed agency			906		12		(1)		917		-
		Residential mortgage-backed non-agency			49		1		(6)		44		(3)
		Commercial mortgage-backed			41		-		-		41		-
	Asset-backed securities:
		Collateralized debt obligations			24		-		-		24		-
		Other asset-backed			402		1		(7)		396		-
			Total fixed-maturity investments		5,877		260		(100)		6,037		(81)
Money market securities					187		-		-		187		-
Perpetual debt and equity securities					6		1		-		7		-
Total AFS investments				$	6,070	$	261	$	(100)	$	6,231	$	(81)
HTM Investments
Assets of consolidated VIEs:
	Corporate obligations			$	890	$	-	$	(317)	$	573	$	-
Total HTM investments				$	890	$	-	$	(317)	$	573	$	-
_______________
(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, 2015
						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			$	947	$	32	$	(3)	$	976	$	-
	State and municipal bonds				1,674		65		(14)		1,725		-
	Foreign governments				197		3		(2)		198		-
	Corporate obligations				1,516		21		(103)		1,434		(85)
	Mortgage-backed securities:
		Residential mortgage-backed agency			995		7		(9)		993		-
		Residential mortgage-backed non-agency			55		2		(6)		51		(4)
		Commercial mortgage-backed			31		-		-		31		-
	Asset-backed securities:
		Collateralized debt obligations			51		-		(18)		33		-
		Other asset-backed			331		1		(17)		315		-
			Total fixed-maturity investments		5,797		131		(172)		5,756		(89)
Money market securities					351		-		-		351		-
Perpetual debt and equity securities					12		1		-		13		-
Total AFS investments				$	6,160	$	132	$	(172)	$	6,120	$	(89)
HTM Investments
Assets of consolidated VIEs:
	Corporate obligations			$	2,689	$	24	$	(312)	$	2,401	$	-
Total HTM investments				$	2,689	$	24	$	(312)	$	2,401	$	-
_______________
(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.

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	$	499	$	499	$	-	$	-
Due after one year through five years		1,685		1,720		-		-
Due after five years through ten years		960		934		-		-
Due after ten years		1,311		1,462		890		573
Mortgage-backed and asset-backed		1,422		1,422		-		-
Total fixed-maturity investments	$	5,877	$	6,037	$	890	$	573

Gross Unrealized Losses Related To Available-For-Sale And Held-To-Maturity Investments

			September 30, 2016
			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		$	180	$	(1)	$	-	$	-	$	180	$	(1)
	State and municipal bonds			88		(1)		17		(2)		105		(3)
	Foreign governments			6		-		1		(1)		7		(1)
	Corporate obligations			214		(2)		56		(79)		270		(81)
	Mortgage-backed securities:
		Residential mortgage-backed agency		81		-		134		(1)		215		(1)
		Residential mortgage-backed non-agency		1		-		31		(6)		32		(6)
		Commercial mortgage-backed		29		-		4		-		33		-
	Asset-backed securities:
		Collateralized debt obligations		-		-		17		-		17		-
		Other asset-backed		52		-		97		(7)		149		(7)
Total AFS investments			$	651	$	(4)	$	357	$	(96)	$	1,008	$	(100)
HTM Investments
Assets of consolidated VIEs:
	Corporate obligations		$	-	$	-	$	573	$	(317)	$	573	$	(317)
Total HTM investments			$	-	$	-	$	573	$	(317)	$	573	$	(317)

				December 31, 2015
				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			$	434	$	(2)	$	50	$	(1)	$	484	$	(3)
	State and municipal bonds				536		(11)		42		(3)		578		(14)
	Foreign governments				32		(2)		-		-		32		(2)
	Corporate obligations				693		(14)		78		(89)		771		(103)
	Mortgage-backed securities:
		Residential mortgage-backed agency			399		(4)		159		(5)		558		(9)
		Residential mortgage-backed non-agency			24		(2)		17		(4)		41		(6)
		Commercial mortgage-backed			25		-		1		-		26		-
	Asset-backed securities:
		Collateralized debt obligations			2		-		29		(18)		31		(18)
		Other asset-backed			242		(1)		34		(16)		276		(17)
			Total fixed-maturity investments		2,387		(36)		410		(136)		2,797		(172)
Perpetual debt and equity securities					2		-		3		-		5		-
Total AFS investments				$	2,389	$	(36)	$	413	$	(136)	$	2,802	$	(172)
HTM Investments
Assets of consolidated VIEs:
	Corporate obligations			$	1,093	$	(17)	$	280	$	(295)	$	1,373	$	(312)
Total HTM investments				$	1,093	$	(17)	$	280	$	(295)	$	1,373	$	(312)

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%	6	$	6	$	5	-	$	-	$	-
> 15% to 25%	5		78		64	-		-		-
> 25% to 50%	3		3		2	-		-		-
> 50%	2		104		26	1		575		270
Total	16	$	191	$	97	1	$	575	$	270

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		$	70	$	-	$	59	$	-	$	3	$	-	$	2	$	-	$	32	$	(7)	$	-	$	-	$	166	$	(7)
MBS			231		(1)		13		-		2		-		1		-		22		(3)		11		(3)		280		(7)
Corporate obligations			86		(1)		61		-		61		(1)		29		(1)		7		-		26		(78)		270		(81)
	Total	$	387	$	(2)	$	133	$	-	$	66	$	(1)	$	32	$	(1)	$	61	$	(10)	$	37	$	(81)	$	716	$	(95)

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	Below Investment Grade	Below Investment Grade	$	32	65	%
MBS	Below Investment Grade	Below Investment Grade	$	18	100	%

Credit Losses Recognized In Earnings Related To OTTI Losses Recognized In Accumulated Other Comprehensive Income (Loss)

In millions		Three Months Ended September 30,				Nine Months Ended September 30,
Credit Losses Recognized in Earnings Related to Other-Than-Temporary Impairments		2016			2015	2016			2015
Beginning balance		$	26	$	22	$	26	$	16
Additions for credit loss impairments recognized in the current period on securities
	previously impaired		-		3		-		9
Ending balance		$	26	$	25	$	26	$	25

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)	$	49	$	(7)	$	3
Mortgage-backed:
	MBIA(1)		17		(3)		16
Other:
	MBIA(1)		8		(1)		-
Total		$	74	$	(11)	$	19
_______________
(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.

Gross Realized Gains and Losses From Sales Of Available-For-Sale Securities

	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2016		2015		2016		2015
Proceeds from sales	$	848	$	251	$	1,785	$	630
Gross realized gains	$	33	$	6	$	70	$	14
Gross realized losses	$	-	$	(2)	$	(18)	$	(11)