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Investments (Tables)
 9 Months Ended
Sep. 30, 2022
Text Block [Abstract]  
Amortized Cost And Fair Value Of Available-For-Sale And Held-To-Maturity Investment Portfolios
The following tables present 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 September 30, 2022 and December 31, 2021:
 
                                                                                      
    
September 30, 2022
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
   
$
749
 
   
$
-
 
   
$
6
 
   
$
(39
) 
  
$
716
 
State and municipal bonds
   
 
143
 
   
 
-
 
   
 
1
 
   
 
(12
) 
  
 
132
 
Foreign governments
   
 
23
 
   
 
-
 
   
 
-
 
   
 
(4
) 
  
 
19
 
Corporate obligations
   
 
872
 
   
 
-
 
   
 
1
 
   
 
(162
) 
  
 
711
 
Mortgage-backed securities:
                                            
Residential mortgage-backed agency
   
 
207
 
   
 
-
 
   
 
-
 
   
 
(25
) 
  
 
182
 
Residential mortgage-backed
non-agency
   
 
135
 
   
 
-
 
   
 
2
 
   
 
(19
) 
  
 
118
 
Commercial mortgage-backed
   
 
13
 
   
 
-
 
   
 
-
 
   
 
(1
) 
  
 
12
 
Asset-backed securities:
                                            
Collateralized debt obligations
   
 
118
 
   
 
-
 
   
 
-
 
   
 
(7
) 
  
 
111
 
Other asset-backed
   
 
109
 
   
 
-
 
   
 
-
 
   
 
(4
) 
  
 
105
 
    
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
  
 
 
 
Total AFS investments
   
$
2,369
 
   
$
-
 
   
$
10
 
   
$
(273
) 
  
$
2,106
 
    
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
  
 
 
 
 
                                                                                      
    
December 31, 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
   
$
782
 
   
$
-
 
   
$
54
 
   
$
(2
) 
  
$
834
 
State and municipal bonds
   
 
140
 
   
 
-
 
   
 
27
 
   
 
-
 
  
 
167
 
Foreign governments
   
 
13
 
   
 
-
 
   
 
1
 
   
 
-
 
  
 
14
 
Corporate obligations
   
 
905
 
   
 
-
 
   
 
53
 
   
 
(5
) 
  
 
953
 
Mortgage-backed securities:
                                            
Residential mortgage-backed agency
   
 
190
 
   
 
-
 
   
 
3
 
   
 
(1
) 
  
 
192
 
Residential mortgage-backed
non-agency
   
 
80
 
   
 
-
 
   
 
12
 
   
 
-
 
  
 
92
 
Commercial mortgage-backed
   
 
10
 
   
 
-
 
   
 
-
 
   
 
-
 
  
 
10
 
Asset-backed securities:
                                            
Collateralized debt obligations
   
 
101
 
   
 
-
 
   
 
-
 
   
 
-
 
  
 
101
 
Other asset-backed
   
 
95
 
   
 
-
 
   
 
-
 
   
 
(1
) 
  
 
94
 
    
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
  
 
 
 
Total AFS investments
   
$
2,316
 
   
$
-
 
   
$
150
 
   
$
(9
) 
  
$
2,457
 
    
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
  
 
 
 
Distribution By Contractual Maturity Of Available-For-Sale and Held-To-Maturity Investments
The following table presents the distribution by contractual maturity of AFS fixed-maturity securities at amortized cost, net of allowance for credit losses, and fair value as of September 30, 2022. Contractual maturity may differ from expected maturity as borrowers may have the right to call or prepay obligations.
 
                                   
    
AFS Securities
In millions
   
Net
Amortized
Cost
   
Fair
Value
Due in one year or less
   
$
379
 
   
$
378
 
Due after one year through five years
   
 
294
 
   
 
278
 
Due after five years through ten years
   
 
342
 
   
 
292
 
Due after ten years
   
 
772
 
   
 
630
 
Mortgage-backed and asset-backed
   
 
582
 
   
 
528
 
    
 
 
 
   
 
 
 
Total fixed-maturity investments
   
$
2,369
 
   
$
2,106
 
    
 
 
 
   
 
 
 
Gross Unrealized Losses Related To Available-For-Sale And Held-To-Maturity Investments
The following tables present the
non-credit
related gross unrealized losses related to AFS investments as of September 30, 2022 and December 31, 2021:
 
                                                                                                       
    
September 30, 2022
    
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
   
$
307
 
   
$
(36
) 
  
$
14
 
   
$
(3
) 
  
$
321
 
   
$
(39
) 
State and municipal bonds
   
 
95
 
   
 
(11
) 
  
 
1
 
   
 
(1
) 
  
 
96
 
   
 
(12
) 
Foreign governments
   
 
18
 
   
 
(4
) 
  
 
-
 
   
 
-
 
  
 
18
 
   
 
(4
) 
Corporate obligations
   
 
597
 
   
 
(134
) 
  
 
74
 
   
 
(28
) 
  
 
671
 
   
 
(162
) 
Mortgage-backed securities:
                                                    
Residential mortgage-backed agency
   
 
127
 
   
 
(13
) 
  
 
55
 
   
 
(12
) 
  
 
182
 
   
 
(25
) 
Residential mortgage-backed
non-agency
   
 
102
 
   
 
(19
) 
  
 
-
 
   
 
-
 
  
 
102
 
   
 
(19
) 
Commercial mortgage-backed
   
 
11
 
   
 
(1
) 
  
 
1
 
   
 
-
 
  
 
12
 
   
 
(1
) 
Asset-backed securities:
                                                    
Collateralized debt obligations
   
 
67
 
   
 
(3
) 
  
 
43
 
   
 
(4
) 
  
 
110
 
   
 
(7
) 
Other asset-backed
   
 
103
 
   
 
(4
) 
  
 
1
 
   
 
-
 
  
 
104
 
   
 
(4
) 
    
 
 
 
   
 
 
 
  
 
 
 
   
 
 
 
  
 
 
 
   
 
 
 
Total AFS investments
   
$
1,427
 
   
$
(225
) 
  
$
189
 
   
$
(48
) 
  
$
1,616
 
   
$
(273
) 
    
 
 
 
   
 
 
 
  
 
 
 
   
 
 
 
  
 
 
 
   
 
 
 
   
    
December 31, 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
   
$
161
 
   
$
(1
) 
  
$
16
 
   
$
(1
) 
  
$
177
 
   
$
(2
) 
State and municipal bonds
   
 
11
 
   
 
-
 
  
 
-
 
   
 
-
 
  
 
11
 
   
 
-
 
Foreign governments
   
 
3
 
   
 
-
 
  
 
-
 
   
 
-
 
  
 
3
 
   
 
-
 
Corporate obligations
   
 
270
 
   
 
(5
) 
  
 
8
 
   
 
-
 
  
 
278
 
   
 
(5
) 
Mortgage-backed securities:
                                                    
Residential mortgage-backed agency
   
 
94
 
   
 
(1
) 
  
 
1
 
   
 
-
 
  
 
95
 
   
 
(1
) 
Residential mortgage-backed
non-agency
   
 
3
 
   
 
-
 
  
 
1
 
   
 
-
 
  
 
4
 
   
 
-
 
Commercial mortgage-backed
   
 
2
 
   
 
-
 
  
 
-
 
   
 
-
 
  
 
2
 
   
 
-
 
Asset-backed securities:
                                                    
Collateralized debt obligations
   
 
60
 
   
 
-
 
  
 
29
 
   
 
-
 
  
 
89
 
   
 
-
 
Other asset-backed
   
 
72
 
   
 
(1
) 
  
 
-
 
   
 
-
 
  
 
72
 
   
 
(1
) 
    
 
 
 
   
 
 
 
  
 
 
 
   
 
 
 
  
 
 
 
   
 
 
 
Total AFS investments
   
$
676
 
   
$
(8
) 
  
$
55
 
   
$
(1
) 
  
$
731
 
   
$
(9
) 
    
 
 
 
   
 
 
 
  
 
 
 
   
 
 
 
  
 
 
 
   
 
 
 
Distribution Of Securities By Percentage Of Fair Value Below Book Value By More Than 5%
The following table presents the distribution of securities in an unrealized loss position for a continuous twelve-month period or longer where fair value was below book value by more than 5% as of September 30, 2022:
 
                                                    
    
AFS Securities
Percentage of Fair Value Below Book Value
   
Number of
Securities
   
Book Value

(in millions)
   
Fair Value
(in millions)
> 5% to 15%
   
 
34
 
   
$
80
 
   
$
72
 
> 15% to 25%
   
 
45
 
   
 
71
 
   
 
56
 
> 25% to 50%
   
 
53
 
   
 
73
 
   
 
49
 
> 50%
   
 
3
 
   
 
-
 
   
 
-
 
    
 
 
 
   
 
 
 
   
 
 
 
Total
   
 
135
 
   
$
224
 
   
$
177
 
    
 
 
 
   
 
 
 
   
 
 
 
Summary of Allowance for Credit Losses on AFS Investments
The following tables present the rollforward of allowance for credit losses on AFS investments for the three and nine months ended September 30, 2022:
 
                                                                                                                                                          
    
Three Months Ended September 30, 2022
In millions
   
Balance
as of
June 30,
2022
   
Additions
not
previously
recorded
   
Additions
arising
from PCD
Assets
   
Reductions
from
Securities
Sold
   
Reductions-
Intent

to sell

or MLTN
   
Change in
Allowance
Previously
Recorded
   
Write
Offs
   
Recoveries
   
Balance

as of
September 30,
2022
AFS Investments
                                                                                 
Fixed-maturity investments:
                                                                                 
Corporate obligations
   
$
3
 
   
$
-
 
   
$
-
 
   
$
-
 
   
$
3
 
   
$
-
 
   
$
-
 
   
$
-
 
   
$
-
 
    
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
Total Allowance on AFS investments
   
$
3
 
   
$
-
 
   
$
-
 
   
$
-
 
   
$
3
 
   
$
-
 
   
$
-
 
   
$
-
 
   
$
-
 
    
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
 
                                                                                                                                                          
    
Nine Months Ended September 30, 2022
In millions
   
Balance

as of
December 31,
2021
   
Additions
not
previously
recorded
   
Additions
arising
from PCD
Assets
   
Reductions
from
Securities
Sold
   
Reductions-
Intent

to sell

or MLTN
   
Change in
Allowance
Previously
Recorded
   
Write
Offs
   
Recoveries
   
Balance

as of
September 30,
2022
AFS Investments
                                                                                 
Fixed-maturity investments:
                                                                                 
Corporate obligations
   
$
-
 
   
$
3
 
   
$
-
 
   
$
-
 
   
$
3
 
   
$
-
 
   
$
-
 
   
$
-
 
   
$
-
 
    
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
Total Allowance on AFS investments
   
$
-
 
   
$
3
 
   
$
-
 
   
$
-
 
   
$
3
 
   
$
-
 
   
$
-
 
   
$
-
 
   
$
-
 
    
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
Securities Held In Unrealized Loss Position And Insured By Financial Guarantor and The Related Insurance Loss Reserve On Company Insured Investments The following table provides information about securities held by the Company as of September 30, 2022 that were in an unrealized loss position and insured by a financial guarantor, along with the amount of insurance loss reserves corresponding to the par amount owned by the Company. The Company did not hold any securities in an unrealized loss position that were insured by a third-party financial guarantor as of September 30, 2022.
 
                                                    
In millions
   
Fair
Value
     
Unrealized
Loss
     
Insurance
Loss
Reserve 
(1)
  
Mortgage-backed
   
$
93
 
   
$
(17)
 
   
$
111
 
Corporate obligations
   
 
74
 
   
 
(31)
 
   
 
-
 
Other
   
 
6
 
   
 
-
 
   
 
-
 
    
 
 
     
 
 
     
 
 
  
Total
   
$
173
 
   
$
(48)
 
   
$
111
 
    
 
 
     
 
 
     
 
 
  
 
(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.
Gross Realized Gains and Losses From Sales Of Available-For-Sale Securities The proceeds and the gross realized gains and losses from sales of fixed-maturity securities held as AFS for the three and nine months ended September 30, 2022 and 2021 are as follows:
                                                                     
    
Three Months Ended September 30,
   
Nine Months Ended September 30,
In millions
   
2022
  
2021
   
2022
  
2021
Proceeds from sales
   
$
339
 
  
$
73
 
   
$
859
 
  
$
469
 
Gross realized gains
   
$
2
 
  
$
1
 
   
$
3
 
  
$
7
 
Gross realized losses
   
$
(17
) 
  
$
-
 
   
$
(42
) 
  
$
(8
) 
Portion Of Unrealized Gains Losses Recognized On Equity Investments
 
                                                                     
In millions
   
Three Months Ended September 30,
  
Nine Months Ended September 30,
    
2022
  
2021
  
2022
  
2021
Net gains (losses) recognized during the period on equity and trading securities
   
$
(3
) 
  
$
-
 
  
$
(31
) 
  
$
5
 
Less:
                                 
Net gains (losses) recognized during the period on equity and trading securities sold during the period
   
 
(6
) 
  
 
1
 
  
 
(6
) 
  
 
1
 
    
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Unrealized gains (losses) recognized during the period on equity and trading securities still held at the reporting date
   
$
3
 
  
$
(1
) 
  
$
(25
) 
  
$
4