Investments (Tables)

3 Months Ended

Mar. 31, 2020

Text Block [Abstract]

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

	March 31, 2020
In millions	Amortized Cost		Allowance for Credit Losses			Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
AFS Investments
Fixed-maturity investments:
U.S. Treasury and government agency	$	758	$	-		$	101	$	-		$	859
State and municipal bonds		168		-			23		-			191
Foreign governments		10		-			-		(1	)		9
Corporate obligations		1,114		-			90		(33	)		1,171
Mortgage-backed securities:
Residential mortgage-backed agency		266		-			8		-			274
Residential mortgage-backed non-agency		27		-			1		(7	)		21
Commercial mortgage-backed		20		-			-		(1	)		19
Asset-backed securities:
Collateralized debt obligations		131		-			-		(19	)		112
Other asset-backed		277		-			-		(2	)		275
Total AFS investments	$	2,771	$	-		$	223	$	(63	)	$	2,931
HTM Investments
Assets of consolidated VIEs:
Corporate obligations	$	575	$	(46	)	$	43	$	-		$	572
Total HTM investments	$	575	$	(46	)	$	43	$	-		$	572

	December 31, 2019
In millions	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Other-Than- Temporary Impairments(1)
AFS Investments
Fixed-maturity investments:
U.S. Treasury and government agency	$	838	$	46	$	(2	)	$	882	$	-
State and municipal bonds		178		22		-			200		-
Foreign governments		8		1		-			9		-
Corporate obligations		1,140		52		(1	)		1,191		-
Mortgage-backed securities:
Residential mortgage-backed agency		317		3		-			320		-
Residential mortgage-backed non-agency		23		1		(5	)		19		-
Commercial mortgage-backed		20		-		-			20		-
Asset-backed securities:
Collateralized debt obligations		139		-		(2	)		137		-
Other asset-backed		321		1		(1	)		321		-
Total AFS investments	$	2,984	$	126	$	(11	)	$	3,099	$	-
HTM Investments
Assets of consolidated VIEs:
Corporate obligations	$	890	$	2	$	-		$	892	$	-
Total HTM investments	$	890	$	2	$	-		$	892	$	-

(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
In millions	Net Amortized Cost		Fair Value		Net Amortized Cost		Fair Value
Due in one year or less	$	476	$	476	$	-	$	-
Due after one year through five years		500		506		-		-
Due after five years through ten years		345		357		-		-
Due after ten years		729		891		529		572
Mortgage-backed and asset-backed		721		701		-		-
Total fixed-maturity investments	$	2,771	$	2,931	$	529	$	572

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

	March 31, 2020
	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	$	4	$	-		$	-	$	-		$	4	$	-
State and municipal bonds		31		-			-		-			31		-
Foreign governments		7		(1	)		-		-			7		(1	)
Corporate obligations		482		(31	)		6		(2	)		488		(33	)
Mortgage-backed securities:
Residential mortgage-backed non-agency		9		(1	)		9		(6	)		18		(7	)
Commercial mortgage-backed		9		(1	)		-		-			9		(1	)
Asset-backed securities:
Collateralized debt obligations		49		(4	)		64		(15	)		113		(19	)
Other asset-backed		170		(2	)		-		-			170		(2	)
Total AFS investments	$	761	$	(40	)	$	79	$	(23	)	$	840	$	(63	)

	December 31, 2019
	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	$	148	$	(1	)	$	79	$	(1	)	$	227	$	(2	)
State and municipal bonds		11		-			15		-			26		-
Corporate obligations		53		(1	)		10		-			63		(1	)
Mortgage-backed securities:
Residential mortgage-backed agency		62		-			7		-			69		-
Residential mortgage-backed non-agency		-		-			11		(5	)		11		(5	)
Commercial mortgage-backed		5		-			-		-			5		-
Asset-backed securities:
Collateralized debt obligations		44		-			77		(2	)		121		(2	)
Other asset-backed		48		(1	)		7		-			55		(1	)
Total AFS investments	$	371	$	(3	)	$	206	$	(8	)	$	577	$	(11	)

Distribution Of Securities By Percentage Of Fair Value Below Book Value By More Than 5%

	AFS Securities
Percentage of Fair Value Below Book Value	Number of Securities		Book Value (in millions)		Fair Value (in millions)
> 5% to 15%		8	$	21	$	20
> 15% to 25%		18		48		38
> 25% to 50%		13		33		21
> 50%		2		-		-
Total		41	$	102	$	79

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)
Mortgage-backed:
MBIA(1)	$	9	$	(6)	$	22

(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.

Summary of Allowance for Credit Losses on HTM Investments

The following table presents the rollforward of allowance for credit losses on HTM investments for the three months ended March 31, 2020:

In millions			Three Months Ended March 31, 2020
	Balance as of January 1, 20201		Current period provision for expected credit losses		Initial allowance recognized for PCD assets		Write-Offs		Recoveries		Balance as of March 31, 2020
HTM Investments
Assets of consolidated VIEs:
Corporate obligations	$	37	$	9	$	-	$	-	$	-	$	46
Total Allowance on HTM investments	$	37	$	9	$	-	$	-	$	-	$	46

(1) - Represents transition adjustment upon adoption of ASU 2016-13.

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

In millions	Three Months Ended
Credit Losses Recognized in Earnings Related to Other-Than-Temporary Impairments	March 31, 2019
Beginning balance	$	37
Additions for credit loss impairments recognized in the current period on securities previously impaired		28
Ending balance	$	65

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

	Three Months Ended March 31,
In millions	2020			2019
Proceeds from sales	$	279		$	683
Gross realized gains	$	11		$	5
Gross realized losses	$	(8	)	$	(1	)

Portion Of Unrealized Gains Losses Recognized On Equity Investments [Table Text Block]

	Three Months Ended March 31,
In millions	2020			2019
Net gains and (losses) recognized during the period on equity securities	$	(13	)	$	5
Less:
Net gains and (losses) recognized during the period on equity securities sold during the period		-			1
Unrealized gains and (losses) recognized during the period on equity securities still held at the reporting date	$	(13	)	$	4