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Investments (Tables)
 3 Months Ended
Mar. 31, 2023
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 March 31, 2023 and December 31, 2022:
 
                                                                                      
    
March 31, 2023
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
   
$
562
 
   
$
-
 
   
$
8
 
   
$
(27
) 
  
$
543
 
State and municipal bonds
   
 
136
 
   
 
-
 
   
 
3
 
   
 
(8
) 
  
 
131
 
Foreign governments
   
 
25
 
   
 
-
 
   
 
1
 
   
 
(2
) 
  
 
24
 
Corporate obligations
   
 
1,007
 
   
 
-
 
   
 
3
 
   
 
(129
) 
  
 
881
 
Mortgage-backed securities:
                                            
Residential mortgage-backed agency
   
 
237
 
   
 
-
 
   
 
1
 
   
 
(20
) 
  
 
218
 
Residential mortgage-backed
non-agency
   
 
104
 
   
 
-
 
   
 
2
 
   
 
(10
) 
  
 
96
 
Commercial mortgage-backed
   
 
27
 
   
 
-
 
   
 
-
 
   
 
(1
) 
  
 
26
 
Asset-backed securities:
                                            
Collateralized debt obligations
   
 
114
 
   
 
-
 
   
 
1
 
   
 
(4
) 
  
 
111
 
Other asset-backed
   
 
88
 
   
 
-
 
   
 
1
 
   
 
(3
) 
  
 
86
 
    
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
  
 
 
 
Total AFS investments
   
$
2,300
 
   
$
-
 
   
$
20
 
   
$
(204
) 
  
$
2,116
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
          
          
          
          
          
 
  
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
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
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 March 31, 2023. 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
   
$
218
 
   
$
218
 
Due after one year through five years
   
 
419
 
   
 
411
 
Due after five years through ten years
   
 
341
 
   
 
302
 
Due after ten years
   
 
752
 
   
 
648
 
Mortgage-backed and asset-backed
   
 
570
 
   
 
537
 
    
 
 
 
   
 
 
 
Total fixed-maturity investments
   
$
2,300
 
   
$
2,116
 
 
 
 
 
 
 
 
 
 
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 March 31, 2023 and December 31, 2022:
 
                                                                                                       
    
March 31, 2023
    
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
   
$
131
 
   
$
(9
) 
  
$
152
 
   
$
(18
) 
  
$
283
 
   
$
(27
) 
State and municipal bonds
   
 
47
 
   
 
(1
) 
  
 
28
 
   
 
(7
) 
  
 
75
 
   
 
(8
) 
Foreign governments
   
 
1
 
   
 
-
 
  
 
9
 
   
 
(2
) 
  
 
10
 
   
 
(2
) 
Corporate obligations
   
 
301
 
   
 
(40
) 
  
 
390
 
   
 
(89
) 
  
 
691
 
   
 
(129
) 
Mortgage-backed securities:
                                                    
Residential mortgage-backed agency
   
 
60
 
   
 
(3
) 
  
 
114
 
   
 
(17
) 
  
 
174
 
   
 
(20
) 
Residential mortgage-backed
non-agency
   
 
51
 
   
 
(5
) 
  
 
23
 
   
 
(5
) 
  
 
74
 
   
 
(10
) 
Commercial mortgage-backed
   
 
19
 
   
 
-
 
  
 
7
 
   
 
(1
) 
  
 
26
 
   
 
(1
) 
Asset-backed securities:
                                                    
Collateralized debt obligations
   
 
25
 
   
 
(1
) 
  
 
85
 
   
 
(3
) 
  
 
110
 
   
 
(4
) 
Other asset-backed
   
 
9
 
   
 
-
 
  
 
37
 
   
 
(3
) 
  
 
46
 
   
 
(3
) 
 
  
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
Total AFS investments
   
$
644
 
   
$
(59
) 
  
$
845
 
   
$
(145
) 
  
$
1,489
 
   
$
(204
) 
    
 
 
 
   
 
 
 
  
 
 
 
   
 
 
 
  
 
 
 
   
 
 
 
 
  
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
) 
    
 
 
 
   
 
 
 
  
 
 
 
   
 
 
 
  
 
 
 
   
 
 
 
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 March 31, 2023:
 
                                                    
    
AFS Securities
Percentage of Fair Value Below Book Value
   
Number of
Securities
   
Book Value
(in millions)
   
Fair Value
(in millions)
> 5% to 15%
   
 
213
 
   
$
427
 
   
$
384
 
> 15% to 25%
   
 
145
 
   
 
297
 
   
 
241
 
> 25% to 50%
   
 
84
 
   
 
132
 
   
 
91
 
> 50%
   
 
2
 
   
 
-
 
   
 
-
 
    
 
 
 
   
 
 
 
   
 
 
 
Total
   
 
444
 
   
$
856
 
   
$
716
 
    
 
 
 
   
 
 
 
   
 
 
 
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 three months ended March 31, 2022. The additions to the allowance for credit losses for the three months ended March 31, 2022 were related to concerns on an issuer’s credit deterioration as a result of the Ukraine and Russia conflict. The Company did not establish an allowance for credit losses for AFS securities for the three months ended March 31, 2023.
 
          
          
          
          
          
          
          
          
          
 
 
Three Months Ended March 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
March 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 March 31, 2023 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 March 31, 2023. 

                                                    
In millions
   
Fair
Value
     
Unrealized
Loss
     
Insurance
Loss
Reserve 
(1)
  
Mortgage-backed
   
$
58
 
   
$
(8)
 
   
$
74
 
Corporate obligations
   
 
77
 
   
 
(31)
 
   
 
-
 
    
 
 
     
 
 
     
 
 
  
Total
   
$
135
 
   
$
(39)
 
   
$
74
 
          
          
          
  
 
 
 
  
 
 
 
  
 
 
 
  
  
  

(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 months ended March 31, 2023 and 2022 are as follows:
 
          
          
 
  
Three Months Ended March 31,
In millions
  
2023
 
2022
Proceeds from sales
   
$
98
 
   
$
106
 
Gross realized gains
   
$
1
 
   
$
-
 
Gross realized losses
   
$
(4
 )
 
   
$
(3
 )
 
Portion Of Unrealized Gains Losses Recognized On Equity Investments
          
          
 
  
Three Months Ended March 31,
In millions
  
2023
  
2022
Net gains and (losses) recognized during the period on equity and trading securities
   
$
1
 
   
$
(10
) 
Less:
                  
Net gains and (losses) recognized during the period on equity and trading securities sold during the period
   
 
-
 
   
 
1
 
    
 
 
 
   
 
 
 
Unrealized gains and (losses) recognized during the period on equity and trading securities still held at the reporting date
   
$
1
 
   
$
(11
)