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Investments and Cash (Tables)
 9 Months Ended
Sep. 30, 2020
Investments, Debt and Equity Securities [Abstract]  
Marketable Securities
Investment Portfolio
Carrying Value
As of
September 30, 2020December 31, 2019
 (in millions)
Fixed-maturity securities (1):
Externally managed$7,237 $7,978 
Internally managed:
AssuredIM520 — 
Loss mitigation and other securities 799 876 
Short-term investments858 1,268 
Other invested assets
Equity method investments97 111 
Other16 7 
Total$9,527 $10,240 
____________________
(1)    8.1% and 8.6% of fixed-maturity securities, related primarily to loss mitigation and other risk management strategies, are rated BIG as of September 30, 2020 and December 31, 2019, respectively.
Fixed Maturity Securities and Short Term Investments by Security Type
Fixed-Maturity Securities and Short-Term Investments
by Security Type 
As of September 30, 2020
Security TypePercent
of
Total (1)		Amortized
Cost		Allowance for Credit LossesGross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair
Value
AOCI (2)
Pre-tax Gain
(Loss) on
Securities
with
Credit Loss
Weighted
Average
Credit
Rating (3)
 (dollars in millions)
Fixed-maturity securities:       
Obligations of state and political subdivisions41 %$3,665 $(11)$347 $(2)$3,999 $— AA-
U.S. government and agencies2 179 — 13 — 192 — AA+
Corporate securities24 2,179 (39)159 (26)2,273 (17)A
Mortgage-backed securities (4):0  
RMBS7 612 (20)37 (23)606 (22)A-
CMBS4 367 — 29 — 396 — AAA
Asset-backed securities10 932 (6)25 (4)947 (3)BBB
Non-U.S. government securities2 146 — 4 (7)143 — AA
Total fixed-maturity securities90 8,080 (76)614 (62)8,556 (42)A+
Short-term investments10 858 — — — 858 — AAA
Total100 %$8,938 $(76)$614 $(62)$9,414 $(42)A+
Fixed-Maturity Securities and Short-Term Investments
by Security Type 
As of December 31, 2019 
Security TypePercent
of
Total (1)		Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair
Value		AOCI
Pre-tax
Gain
(Loss) on
Securities
with
OTTI
Weighted
Average
Credit
Rating (3)
 (dollars in millions)
Fixed-maturity securities:       
Obligations of state and political subdivisions42 %$4,036 $305 $(1)$4,340 $40 AA-
U.S. government and agencies1 137 10 — 147 — AA+
Corporate securities23 2,137 103 (19)2,221 (8)A
Mortgage-backed securities (4):       
RMBS8 745 37 (7)775 8 A-
CMBS4 402 17 — 419 — AAA
Asset-backed securities7 684 38 (2)720 16 BB+
Non-U.S. government securities2 230 7 (5)232 3 AA
Total fixed-maturity securities87 8,371 517 (34)8,854 59 A+
Short-term investments13 1,268 — — 1,268 — AAA
Total100 %$9,639 $517 $(34)$10,122 $59 AA-
____________________
(1)Based on amortized cost.
 
(2)Accumulated OCI (AOCI).

(3)Ratings represent the lower of the Moody’s and S&P classifications, except for bonds purchased for loss mitigation or risk management strategies, which use internal ratings classifications. The Company’s portfolio primarily consists of high-quality, liquid instruments.
 
(4)U.S. government-agency obligations were approximately 37% of mortgage backed securities as of September 30, 2020 and 42% as of December 31, 2019 based on fair value.
 Less than 12 months12 months or moreTotal
 Fair
Value		Unrealized
Loss		Fair
Value		Unrealized
Loss		Fair
Value		Unrealized
Loss
 (dollars in millions)
Obligations of state and political subdivisions$89 $(2)$— $— $89 $(2)
U.S. government and agencies20 — — — 20 — 
Corporate securities39 (1)57 (8)96 (9)
Mortgage-backed securities: 
RMBS20 (1)1 — 21 (1)
CMBS— — 1 — 1 — 
Asset-backed securities122 — 94 (1)216 (1)
Non-U.S. government securities10 — 41 (7)51 (7)
Total$300 $(4)$194 $(16)$494 $(20)
Number of securities (1) 93  55  147 
 

Fixed-Maturity Securities
Gross Unrealized Loss by Length of Time
As of December 31, 2019
 Less than 12 months12 months or moreTotal
 Fair
Value		Unrealized
Loss		Fair
Value		Unrealized
Loss		Fair
Value		Unrealized
Loss
 (dollars in millions)
Obligations of state and political subdivisions$45 $(1)$— $— $45 $(1)
U.S. government and agencies5 — 5 — 10 — 
Corporate securities61 — 119 (19)180 (19)
Mortgage-backed securities:    
RMBS10 — 75 (7)85 (7)
CMBS— — 4 — 4 — 
Asset-backed securities24 — 183 (2)207 (2)
Non-U.S. government securities— — 56 (5)56 (5)
Total$145 $(1)$442 $(33)$587 $(34)
Number of securities 57  119  176 
Number of securities with OTTI 1  7  8 
___________________
(1)    The number of securities does not add across because lots consisting of the same securities have been purchased at different times and appear in both categories above (i.e., less than 12 months and 12 months or more). If a security appears in both categories, it is counted only once in the total column.
Investments Classified by Contractual Maturity Date
Distribution of Fixed-Maturity Securities
by Contractual Maturity
As of September 30, 2020
 
 Amortized
Cost		Estimated
Fair Value
 (in millions)
Due within one year$333 $329 
Due after one year through five years1,599 1,686 
Due after five years through 10 years1,913 2,014 
Due after 10 years3,256 3,525 
Mortgage-backed securities:  
RMBS612 606 
CMBS367 396 
Total$8,080 $8,556 
Net Investment Income
Net Investment Income
 
 Third QuarterNine Months
 2020201920202019
(in millions)
Interest income:
Externally managed$54 $66 $178 $207 
Internally managed:
AssuredIM3 — 3 — 
Loss mitigation and other securities16 24 54 95 
Interest income73 90 235 302 
Investment expenses(2)(2)(6)(6)
Net investment income$71 $88 $229 $296 
Net Realized Investment Gains (Losses)
Net Realized Investment Gains (Losses)
 
 Third QuarterNine Months
 2020201920202019
 (in millions)
Gross realized gains on available-for-sale securities$16 $29 $39 $48 
Gross realized losses on available-for-sale securities(3)(1)(12)(4)
Credit impairments (1)— (12)(15)(32)
Net realized investment gains (losses) (2)$13 $16 $12 $12 
____________________
(1)    Credit impairment in Nine Months 2020 was related primarily to an increase in the allowance for credit loss on loss mitigation securities. Shut-downs due to COVID-19 pandemic restrictions contributed to the increase in the allowance for credit losses in Nine Months 2020. Credit impairment in Third Quarter 2019 was primarily attributable to foreign exchange losses while Nine Months 2019 was primarily attributable to foreign exchange losses and loss mitigation securities.

(2)    Includes foreign currency gains of $5 million for Third Quarter 2020 and $6 million for Nine Months 2020. Includes foreign currency losses of $12 million in Third Quarter 2019 and $17 million Nine Months 2019, respectively.
Roll Forward of Credit Losses in the Investment Portfolio The following table presents the roll-forward of the credit losses on fixed-maturity securities for which the Company has recognized an allowance for credit losses in 2020 or an OTTI and for which unrealized loss was recognized in OCI for 2019.
Roll Forward of Credit Losses
for Fixed-Maturity Securities
 Third QuarterNine Months
 2020201920202019
 (in millions)
Balance, beginning of period$75 $191 $— $185 
Effect of adoption of accounting guidance on credit losses on January 1, 2020— — 62 — 
Additions for credit losses on securities for which credit impairments were not previously recognized— — 1 — 
Reductions for securities sold and other settlements— — — (7)
Additions (reductions) for credit losses on securities for which credit impairments were previously recognized1 — 13 13 
Balance, end of period$76 $191 $76 $191