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Investments (Tables)
 9 Months Ended
Sep. 30, 2024
Investments, Debt and Equity Securities [Abstract]  
Marketable Securities
Investment Portfolio
Carrying Value
As of
September 30, 2024December 31, 2023
 (in millions)
Fixed-maturity securities, available-for-sale (1):
Externally managed$5,554 $5,372 
Loss Mitigation Securities468 459 
Other262 476 
Fixed-maturity securities, trading (2) 163 318 
Short-term investments
1,487 1,661 
Other invested assets:
Equity method investments:
Sound Point
417 429 
Alternative investments (3)487 394 
Other8 6 
Total (4)$8,846 $9,115 
____________________
(1)    9.1% and 9.2% of fixed-maturity securities, available-for-sale, were rated BIG or not rated as of September 30, 2024 and December 31, 2023, respectively. BIG rated securities consisted primarily of Loss Mitigation Securities.
(2)    These securities are not rated. Includes CVIs of $136 million and $318 million as of September 30, 2024 and December 31, 2023, respectively.
(3)    Excludes certain investments in funds of $278 million and $305 million as of September 30, 2024 and December 31, 2023, respectively, that are consolidated and accounted for as CIVs. See Note 8, Financial Guaranty Variable Interest Entities and Consolidated Investment Vehicles.
(4)    The aggregate carrying value of the Company’s investments in Sound Point managed funds, excluding the investment in Sound Point of $417 million and $429 million as of September 30, 2024 and December 31, 2023, respectively, and excluding certain investments in funds that are consolidated and accounted for as CIVs, was $288 million and $202 million as of September 30, 2024 and December 31, 2023, respectively.
Fixed Maturity Securities and Short Term Investments by Security Type
Available-for-Sale Fixed-Maturity Securities by Security Type 
As of September 30, 2024
Security TypePercent
of
Total (1)		Amortized
Cost		Allowance for Credit LossesGross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair
Value
 (dollars in millions)
Obligations of state and political subdivisions33 %$2,171 $(14)$33 $(71)$2,119 
U.S. government and agencies1 75 — 1 (5)71 
Corporate securities (2)
38 2,503 (6)43 (136)2,404 
Mortgage-backed securities (3):
 
RMBS10 613 (20)11 (60)544 
Commercial mortgage-backed securities (CMBS)3 180 — 3 (3)180 
Asset-backed securities:
CLOs6 384 — 1 (2)383 
Other8 556 (26)3 (25)508 
Non-U.S. government securities1 83 — 1 (9)75 
Total available-for-sale fixed-maturity securities100 %$6,565 $(66)$96 $(311)$6,284 

Available-for-Sale Fixed-Maturity Securities by Security Type 
As of December 31, 2023 
Security TypePercent
of
Total (1)		Amortized
Cost		Allowance for Credit LossesGross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair
Value
 (dollars in millions)
Obligations of state and political subdivisions41 %$2,733 $(13)$33 $(92)$2,661 
U.S. government and agencies1 65 — 1 (6)60 
Corporate securities (2)
34 2,327 (6)17 (197)2,141 
Mortgage-backed securities (3):
    
RMBS6 428 (21)3 (68)342 
CMBS2 157 — — (6)151 
Asset-backed securities:
CLOs7 456 — 1 (7)450 
Other7 465 (37)— (26)402 
Non-U.S. government securities2 115 — — (15)100 
Total available-for-sale fixed-maturity securities100 %$6,746 $(77)$55 $(417)$6,307 
____________________
(1)Based on amortized cost.
(2)Includes securities issued by taxable universities and hospitals.
(3)U.S. government-agency obligations were approximately 67% and 42% of mortgage-backed securities as of September 30, 2024 and December 31, 2023, respectively, based on fair value.
Fixed-Maturity Securities Gross Unrealized Loss by Length of Time
Gross Unrealized Loss by Length of Time
for Available-for-Sale Fixed-Maturity Securities for Which a Credit Loss was Not Recorded
As of September 30, 2024  
 Less than 12 months12 months or moreTotal
 Fair
Value		Gross Unrealized
Loss		Fair
Value		Gross Unrealized
Loss		Fair
Value		Gross Unrealized
Loss
 (dollars in millions)
Obligations of state and political subdivisions$177 $— $1,032 $(71)$1,209 $(71)
U.S. government and agencies— — 31 (5)31 (5)
Corporate securities68 — 1,117 (107)1,185 (107)
Mortgage-backed securities: 
RMBS19 — 138 (7)157 (7)
CMBS— — 105 (3)105 (3)
Asset-backed securities:
CLOs59 (1)150 (1)209 (2)
Other— — 19 — 19 — 
Non-U.S. government securities20 — 33 (9)53 (9)
Total$343 $(1)$2,625 $(203)$2,968 $(204)
Number of securities (1) 103  1,105  1,203 
 
Gross Unrealized Loss by Length of Time
for Available-for-Sale Fixed-Maturity Securities for Which a Credit Loss was Not Recorded
As of December 31, 2023
 Less than 12 months12 months or moreTotal
 Fair
Value		Gross Unrealized
Loss		Fair
Value		Gross Unrealized
Loss		Fair
Value		Gross Unrealized
Loss
 (dollars in millions)
Obligations of state and political subdivisions$641 $(4)$931 $(87)$1,572 $(91)
U.S. government and agencies— — 33 (6)33 (6)
Corporate securities72 (1)1,426 (152)1,498 (153)
Mortgage-backed securities:    
RMBS27 (1)124 (8)151 (9)
CMBS3 — 148 (6)151 (6)
Asset-backed securities:
CLOs22 (1)379 (6)401 (7)
Other1 — 26 (1)27 (1)
Non-U.S. government securities— — 95 (15)95 (15)
Total$766 $(7)$3,162 $(281)$3,928 $(288)
Number of securities (1) 274  1,266  1,525 
___________________
(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
The amortized cost and estimated fair value of available-for-sale fixed-maturity securities by contractual maturity as of September 30, 2024 are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
 
Distribution of Available-for-Sale Fixed-Maturity Securities by Contractual Maturity
As of September 30, 2024
 Amortized
Cost		Estimated
Fair Value
 (in millions)
Due within one year$305 $307 
Due after one year through five years1,256 1,244 
Due after five years through 10 years1,835 1,801 
Due after 10 years2,376 2,208 
Mortgage-backed securities:  
RMBS613 544 
CMBS180 180 
Total$6,565 $6,284 
Net Investment Income
Income from Investments
 Third QuarterNine Months
 2024202320242023
(in millions)
Investment income:
Fixed-maturity securities, available-for-sale:
Externally managed$52 $51 $154 $156 
Loss Mitigation Securities7 24 21 46 
Puerto Rico, New Recovery Bonds — 1 — 5 
Other3 5 9 12 
Short-term investments21 21 66 53 
Other invested assets— — — 2 
Investment income83 102 250 274 
Investment expenses(1)(2)(3)(4)
Net investment income$82 $100 $247 $270 
Fair value gains (losses) on trading securities (1)$9 $4 $52 $42 
Equity in earnings (losses) of investees:
Sound Point (2)$4 $— $5 $— 
Funds (3)8 12 27 12 
Other6 6 15 13 
Equity in earnings (losses) of investees$18 $18 $47 $25 
____________________
(1)    Fair value gains on trading securities pertaining to securities still held as of September 30, 2024 were $7 million for third quarter 2024 and $26 million for nine months 2024. Fair value gains on trading securities pertaining to securities still held as of September 30, 2023 were $4 million for third quarter 2023 and $42 million for nine months 2023.
(2)    Beginning in the fourth quarter of 2023, equity in earnings (losses) of investees includes the Company’s share of the earnings of Sound Point, which is reported on a one-quarter lag.
(3)    Sound Point and AHP funds and, prior to July 1, 2023, AssuredIM funds.
Net Realized Investment Gains (Losses)
The table below presents the components of net realized investment gains (losses). Realized gains and losses on sales of investments are determined using the specific identification method.

Net Realized Investment Gains (Losses)
 Third QuarterNine Months
 2024202320242023
 (in millions)
Gross realized gains on sales of available-for-sale securities (1)$— $2 $2 $21 
Gross realized losses on sales of available-for-sale securities(4)(1)(11)(16)
Net foreign currency gains (losses)— (1)(2)(1)
Change in the allowance for credit losses and intent to sell (2)3 (8)11 (23)
Other net realized gains (losses)1 (1)2 (1)
Net realized investment gains (losses)$— $(9)$2 $(20)
____________________
(1)    Gross realized gains and losses in nine months 2023 related primarily to sales of New Recovery Bonds received as part of the 2022 Puerto Rico Resolutions.
(2)    Change in allowance for credit losses for all periods was primarily related to Loss Mitigation Securities.
Rollforward of Credit Losses for Available-for-sale Fixed-Maturity Securities
The following table presents the roll forward of allowance for the credit losses on available-for-sale fixed-maturity securities.

Roll Forward of Allowance for Credit Losses
for Available-for-Sale Fixed-Maturity Securities
 Third QuarterNine Months
 2024202320242023
 (in millions)
Balance, beginning of period$69 $79 $77 $65 
Additions for securities for which credit losses were not previously recognized2 — 2 — 
Additions (reductions) for securities for which credit losses were previously recognized(5)7 (13)21 
Balance, end of period$66 $86 $66 $86