Restricted Cash, Cash Equivalents and Investments

9 Months Ended

Sep. 30, 2011

Restricted Cash, Cash Equivalents and Investments

Restricted Cash, Cash Equivalents and Investments

3.  Restricted Cash, Cash Equivalents and Investments

The following table summarizes Restricted cash, cash equivalents and investment balances:

	September 30,		December 31,
	2011		2010
	(In millions)
Restricted cash and cash equivalents	$	291	$	277
Restricted investments, at fair value	237		254
Total	$	528	$	531

The restricted cash related to our reinsurance activities was invested in certain debt securities as permitted under the reinsurance agreements.  These restricted investments are classified as available-for-sale securities and remain in trust for capital fund requirements and potential reinsurance losses, as summarized in the following tables:

	September 30, 2011
									Weighted-
									average
	Amortized		Fair		Unrealized		Unrealized		remaining
	Cost		Value		Gains		Losses		maturity
	(In millions)
Corporate securities	$	52	$	52	$	—	$	—	31 mos.
Agency securities (1)	89		91		2		—		23 mos.
Government securities	93		94		1		—		23 mos.
Total	$	234	$	237	$	3	$	—	25 mos.

	December 31, 2010
									Weighted-
									average
	Amortized		Fair		Unrealized		Unrealized		remaining
	Cost		Value		Gains		Losses		maturity
	(In millions)
Corporate securities	$	71	$	71	$	—	$	—	30 mos.
Agency securities (1)	106		107		1		—		26 mos.
Government securities	76		76		—		—		28 mos.
Total	$	253	$	254	$	1	$	—	27 mos.

(1) Represents bonds and notes issued by various agencies including, but not limited to, Fannie Mae, Freddie Mac and Federal Home Loan Banks.

During the three and nine months ended September 30, 2011, gains of $1 million from the sale of available-for-sale securities were realized and realized losses were not significant.  During the three and nine months ended September 30, 2010, the amount of realized gains and losses from the sale of available-for-sale securities was not significant.