Investments (Tables)

6 Months Ended

Jun. 30, 2021

Text Block [Abstract]

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

The following tables presents the amortized cost, allowance for credit losses, corresponding gross unrealized gains and losses and fair value for AFS investments in the Company’s consolidated investment portfolio as of June 30, 2021 and December 31, 2020:

	June 30, 2021
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	$	739	$	-	$	58	$	(1	)	$	796
State and municipal bonds		156		-		29		-			185
Foreign governments		16		-		1		-			17
Corporate obligations		864		-		43		(5	)		902
Mortgage-backed securities:
Residential mortgage-backed agency		219		-		5		(1	)		223
Residential mortgage-backed non-agency		85		-		10		-			95
Commercial mortgage-backed		12		-		-		-			12
Asset-backed securities:
Collateralized debt obligations		118		-		-		(1	)		117
Other asset-backed		126		-		-		-			126
Total AFS investments	$	2,335	$	-	$	146	$	(8	)	$	2,473
	December 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	$	775	$	-	$	75	$	(1	)	$	849
State and municipal bonds		162		-		32		-			194
Foreign governments		11		-		1		-			12
Corporate obligations		827		-		64		(1	)		890
Mortgage-backed securities:
Residential mortgage-backed agency		305		-		8		(1	)		312
Residential mortgage-backed non-agency		22		-		3		-			25
Commercial mortgage-backed		17		-		1		-			18
Asset-backed securities:				-
Collateralized debt obligations		120		-		-		(2	)		118
Other asset-backed		121		-		-		-			121
Total AFS investments	$	2,360	$	-	$	184	$	(5	)	$	2,539

Distribution By Contractual Maturity Of Available-For-Sale and Held-To-Maturity Investments

	AFS Securities
In millions	Net Amortized Cost		Fair Value
Due in one year or less	$	509	$	509
Due after one year through five years		311		326
Due after five years through ten years		307		327
Due after ten years		648		738
Mortgage-backed and asset-backed		560		573
Total fixed-maturity investments	$	2,335	$	2,473

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

	June 30, 2021
	Less than 12 Months					12 Months or Longer					Total
In millions	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
AFS Investments
Fixed-maturity investments:
U.S. Treasury and government agency	$	65	$	(1	)	$	-	$	-		$	65	$	(1	)
Foreign governments		7		-			-		-			7		-
Corporate obligations		238		(5	)		7		-			245		(5	)
Mortgage-backed securities:
Residential mortgage-backed agency		99		(1	)		-		-			99		(1	)
Residential mortgage-backed non-agency		5		-			1		-			6		-
Commercial mortgage-backed		1		-			-		-			1		-
Asset-backed securities:
Collateralized debt obligations		28		-			49		(1	)		77		(1	)
Other asset-backed		78		-			1		-			79		-
Total AFS investments	$	521	$	(7	)	$	58	$	(1	)	$	579	$	(8	)

	December 31, 2020
	Less than 12 Months					12 Months or Longer					Total
In millions	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
AFS Investments
Fixed-maturity investments:
U.S. Treasury and government agency	$	99	$	(1	)	$	-	$	-		$	99	$	(1	)
Foreign governments		2		-			-		-			2		-
Corporate obligations		103		(1	)		7		-			110		(1	)
Mortgage-backed securities:
Residential mortgage-backed agency		53		(1	)		-		-			53		(1	)
Residential mortgage-backed non-agency		2		-			1		-			3		-
Commercial mortgage-backed		-		-			5		-			5		-
Asset-backed securities:
Collateralized debt obligations		37		-			78		(2	)		115		(2	)
Other asset-backed		29		-			-		-			29		-
Total AFS investments	$	325	$	(3	)	$	91	$	(2	)	$	416	$	(5	)

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%		1	$	-	$	-
> 15% to 25%		3		1		1
> 50%		2		-		-
Total		6	$	1	$	1

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)
Mortgage-backed	$	1	$	-	$	-
Corporate obligations		62		(3)		-
Total	$	63	$	(3)	$	-

(1) -  Insurance loss reserve estimates are based on the proportion of par value owned to the total amount of par value insured and are discounted using a discount rate equal to the risk-free rate applicable to the currency and weighted average remaining life of the insurance contract and may differ from the fair value.

Summary of Allowance for Credit Losses on HTM Investments

The following tables present the rollforward of the allowance for credit losses on HTM investments for the three and six months ended June 30, 2020.

			Three Months Ended June 30, 2020
In millions	Balance, Beginning of Period		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	$	46	$	(23	)	$	-	$	-	$	-	$	23
Total Allowance on HTM investments	$	46	$	(23	)	$	-	$	-	$	-	$	23
			Six Months Ended June 30, 2020
In millions	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.

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

	Three Months Ended June 30,						Six Months Ended June 30,
In millions	2021			2020			2021			2020
Proceeds from sales	$	218		$	290		$	396		$	569
Gross realized gains	$	2		$	20		$	6		$	31
Gross realized losses	$	(3	)	$	(4	)	$	(8	)	$	(12	)

Portion Of Unrealized Gains Losses Recognized On Equity Investments

	Three Months Ended June 30,				Six Months Ended June 30,
In millions	2021		2020		2021		2020
Net gains (losses) recognized during the period on equity securities	$	3	$	8	$	5	$	(5	)
Less:
Net gains (losses) recognized during the period on equity securities sold during the period		-		-		-		-
Unrealized gains (losses) recognized during the period on equity securities still held at the reporting date	$	3	$	8	$	5	$	(5	)