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Investments (Tables)
 6 Months Ended
Jun. 30, 2020
Text Block [Abstract]  
Amortized Cost And Fair Value Of Available-For-Sale And Held-To-Maturity Investment Portfolios
               
               
               
               
               
 
  
June 30, 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
   $
784
     $
-
     $
91
     $
(1
 )   $
874
  
State and municipal bonds
    
160
      
-
      
31
      
-
      
191
  
Foreign governments
    
13
      
-
      
1
      
-
      
14
  
Corporate obligations
    
915
      
-
      
79
      
(6
 )    
988
  
Mortgage-backed securities:
    
 
      
 
      
 
      
 
      
 
  
Residential mortgage-backed agency
    
250
      
-
      
9
      
-
      
259
  
Residential mortgage-backed non-agency
    
27
      
-
      
-
      
(6
 )    
21
  
Commercial mortgage-backed
    
23
      
-
      
1
      
-
      
24
  
Asset-backed securities:
    
 
      
 
      
 
      
 
      
 
  
Collateralized debt obligations
    
128
      
-
      
-
      
(6
 )    
122
  
Other asset-backed
    
158
      
-
      
1
      
-
      
159
  
                                         
Total AFS investments
   $
2,458
     $
-
     $
213
     $
(19
 )   $
2,652
  
                                         
HTM Investments
    
 
      
 
      
 
      
 
      
 
  
Assets of consolidated VIEs:
    
 
      
 
      
 
      
 
      
 
  
Corporate obligations
   $
575
     $
(23
 )   $
22
     $
-
     $
574
  
                                         
Total HTM investments
   $
575
     $
(23
 )   $
22
     $
-
     $
574
  
                                         
          
          
          
          
          
 
  
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
  
$
377
 
  
$
378
 
  
$
-
 
  
$
-
 
Due after one year through five years
  
 
477
 
  
 
498
 
  
 
-
 
  
 
-
 
Due after five years through ten years
  
 
304
 
  
 
334
 
  
 
-
 
  
 
-
 
Due after ten years
  
 
714
 
  
 
857
 
  
 
552
 
  
 
574
 
Mortgage-backed and asset-backed
  
 
586
 
  
 
585
 
  
 
-
 
  
 
-
 
  
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
Total fixed-maturity investments
  
$
2,458
 
  
$
2,652
 
  
$
552
 
  
$
574
 
  
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
Gross Unrealized Losses Related To Available-For-Sale And Held-To-Maturity Investments
          
          
          
          
          
          
 
  
June 30, 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
   $
66
     $
(1
 )   $
-
     $
-
     $
66
     $
(1
 )
State and municipal bonds
    
1
      
-
      
-
      
-
      
1
      
-
  
Foreign governments
    
5
      
-
      
-
      
-
      
5
      
-
  
Corporate obligations
    
115
      
(5
 )    
7
      
(1
 )    
122
      
(6
 )
Mortgage-backed securities:
    
 
      
 
      
 
      
 
      
 
      
 
  
Residential mortgage-backed agency
    
19
      
-
      
-
      
-
      
19
      
-
  
Residential mortgage-backed non-agency
    
3
      
-
      
10
      
(6
 )    
13
      
(6
 )
Commercial mortgage-backed
    
5
      
-
      
-
      
-
      
5
      
-
  
Asset-backed securities:
    
 
      
 
      
 
      
 
      
 
      
 
  
Collateralized debt obligations
    
46
      
(1
 )    
76
      
(5
 )    
122
      
(6
 )
Other asset-backed
    
16
      
-
      
-
      
-
      
16
      
-
  
                                                 
Total AFS investments
   $
276
     $
(7
 )   $
93
     $
(12
 )   $
369
     $
(19
 )
                                                 
          
          
          
          
          
          
 
  
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%
    
20
     $
59
     $
54
  
> 15% to 25%
    
5
      
2
      
2
  
> 25% to 50%
    
4
      
14
      
8
  
> 50%
    
2
      
-
      
-
  
                         
Total
    
31
     $
75
     $
64
  
                         
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
(1)
 
MBS
 
$
9
 
 
 
(6)
 
 
 
21
 
Corporate obligations
 
 
6
 
 
 
-
 
 
 
-
 
Total
 
$
15
 
 
$
(6)
 
 
$
21
 
 
 
(1) -
 
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
 
          
          
          
          
          
          
In millions
  
 
  
Six Months Ended June 30, 2020
  
 
  
Balance
as of
January 1,
2020
(1)
  
Current period
provision for
expected
credit losses
 
Initial
allowance
recognized for
PCD assets
  
Write-Offs
  
Recoveries
  
Balance
as of
June 30,
2020
HTM Investments
  
  
 
  
  
  
Assets of consolidated VIEs:
  
  
 
  
  
  
Corporate obligations
  
$
37
 
  
$
(14
) 
 
$
-
 
  
$
-
 
  
$
-
 
  
$
23
 
  
 
 
 
   
 
 
 
  
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
Total Allowance on HTM investments
  
$
37
 
  
$
(14
) 
 
$
-
 
  
$
-
 
  
$
-
 
  
$
23
 
  
 
 
 
   
 
 
 
  
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
 
(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
 
Six Months Ended
Credit Losses Recognized in Earnings Related to Other-Than-Temporary Impairments
  
June 30, 2019
 
June 30, 2019
Beginning balance
  
$
65
 
  
$
37
 
Additions for credit loss impairments recognized in the current period on securities previously impaired
  
  
9
 
    
37
 
  
 
 
 
  
 
 
 
Ending balance
  
$
74
 
  
$
74
 
  
 
 
 
  
 
 
 
Gross Realized Gains and Losses From Sales Of Available-For-Sale Securities
 
          
          
          
          
 
  
Three Months Ended
June 30,
 
Six Months Ended
June 30,
In millions
  
2020
 
2019
 
2020
 
2019
Proceeds from sales
  
$
290
 
 
$
684
 
 
$
569
 
 
$
1,367
 
Gross realized gains
  
$
20
 
 
$
16
 
 
$
31
 
 
$
21
 
Gross realized losses
  
$
(4
) 
 
$
(2
) 
 
$
(12
) 
 
$
(3
) 
Portion Of Unrealized Gains Losses Recognized On Equity Investments
 
          
          
          
          
 
  
Three
 
Months
 
Ended
June 30,
  
Six
 
Months
 
Ended
June 30,
In millions
  
2020
  
2019
  
2020
 
2019
Net gains (losses) recognized during the period on equity securities
  
$
8
 
  
$
2
 
  
$
(5
) 
 
$
7
 
Less:
  
  
  
 
Net gains (losses) recognized during the period on equity securities sold during the period
  
 
-
 
  
 
-
 
  
 
-
 
 
 
1
 
  
 
 
 
   
 
 
 
   
 
 
 
  
 
 
 
Unrealized gains (losses) recognized during the period on equity securities still held at the reporting date
  
$
8
 
  
$
2
 
  
$
(5
) 
 
$
6