XML 50 R37.htm IDEA: XBRL DOCUMENT

Investments (Tables)

12 Months Ended

Dec. 31, 2022

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 December 31, 2022 and 2021:


	December 31, 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	$	541	$	—	$	5	$	(38)	$	508
State and municipal bonds		173		—		2		(11)		164
Foreign governments		23		—		—		(3)		20
Corporate obligations		862		—		1		(148)		715
Mortgage-backed securities:
Residential mortgage-backed agency		217		—		—		(22)		195
Residential mortgage-backed non-agency		96		—		3		(11)		88
Commercial mortgage-backed		24		—		—		(1)		23
Asset-backed securities:
Collateralized debt obligations		117		—		—		(5)		112
Other asset-backed		110		—		—		(4)		106

Total AFS investments	$	2,163	$	—	$	11	$	(243)	$	1,931


	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 December 31, 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	$	199	$	197
Due after one year through five years		280		270
Due after five years through ten years		332		288
Due after ten years		788		652
Mortgage-backed and asset-backed		564		524

Total fixed-maturity investments	$	2,163	$	1,931

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 December 31, 2022 and 2021:


	December 31, 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	$	266	$	(34)	$	29	$	(4)	$	295	$	(38)
State and municipal bonds		92		(10)		1		(1)		93		(11)
Foreign governments		9		(3)		—		—		9		(3)
Corporate obligations		508		(106)		141		(42)		649		(148)
Mortgage-backed securities:
Residential mortgage-backed agency		112		(9)		65		(13)		177		(22)
Residential mortgage-backed non-agency		65		(10)		2		(1)		67		(11)
Commercial mortgage-backed		18		(1)		1		—		19		(1)
Asset-backed securities:
Collateralized debt obligations		51		(1)		60		(4)		111		(5)
Other asset-backed		44		(3)		24		(1)		68		(4)

Total AFS investments	$	1,165	$	(177)	$	323	$	(66)	$	1,488	$	(243)


	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 December 31, 2022:


	AFS Securities
Percentage of Fair Value Below Book Value	Number of Securities		Book Value (in millions)		Fair Value (in millions)
> 5% to 15%		72	$	129	$	117
> 15% to 25%		63		117		93
> 25% to 50%		53		84		56
> 50%		2		—		—

Total		190	$	330	$	266

Summary of Allowance for Credit Losses on AFS Investments

The following table presents the rollforward of allowance for credit losses on AFS investments for the year ended December 31, 2022. The additions to the allowance for credit losses for the year ended December 31, 2022 were related to concerns on an issuer’s credit deterioration as a result of the Ukraine and Russia conflict. Such allowance for credit losses was reversed in the same year due to the Company’s intent to sell these securities. The Company did not establish an allowance for credit losses for AFS securities during 2021.


	Years Ended December 31, 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 December 31, 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 December 31, 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 December 31, 2022.


In millions	Fair Value		Unrealized Loss		Insurance Loss Reserve (1)
Mortgage-backed	$	58	$	(9)	$	71
Corporate obligations		71		(35)		—

Total	$	129	$	(44)	$	71

(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 years ended December 31, 2022, 2021 and 2020 are as


	Years Ended December 31,
In millions	2022		2021		2020
Proceeds from sales	$	1,100	$	597	$	1,095
Gross realized gains	$	5	$	12	$	59
Gross realized losses	$	(47)	$	(9)	$	(15)

Portion Of Unrealized Gains Losses Recognized On Equity Investments


	Years Ended December 31,
In millions	2022		2021		2020

Net gains and (losses) recognized during the period on equity securities	$	(21)	$	6	$	3
Less:
Net gains and (losses) recognized during the period on equity securities sold during the period		(6)		1		(1)

Unrealized gains and (losses) recognized during the period on equity securities still held at the reporting date	$	(15)	$	5	$	4