Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2011

Fair Value Measurements [Abstract]

Assets and liabilities measured at fair value

	Level 1		Level 2		Level 3		Total
June 30, 2011
Assets:
Available for sale (“AFS”) fixed maturities:
U.S. Government and government agencies	$	242	$	163	$	—	$	405
States, municipalities and political subdivisions		—		3,391		84		3,475
Foreign government		—		271		—		271
Residential MBS		—		3,587		255		3,842
Commercial MBS		—		2,361		10		2,371
All other corporate		10		9,744		382		10,136
Total AFS fixed maturities		252		19,517		731		20,500
Trading fixed maturities		—		394		1		395
Equity securities		629		129		21		779
Assets of managed investment entities (“MIE”)		125		2,413		53		2,591
Variable annuity assets (separate accounts) (a)		—		624		—		624
Other investments		—		113		—		113
Total assets accounted for at fair value	$	1,006	$	23,190	$	806	$	25,002
Liabilities:
Liabilities of managed investment entities	$	108	$	—	$	2,322	$	2,430
Derivatives in annuity benefits accumulated		—		—		299		299
Total liabilities accounted for at fair value	$	108	$	—	$	2,621	$	2,729
December 31, 2010
Assets:
Available for sale (“AFS”) fixed maturities:
U.S. Government and government agencies	$	249	$	218	$	—	$	467
States, municipalities and political subdivisions		—		2,919		20		2,939
Foreign government		—		278		—		278
Residential MBS		—		3,563		312		3,875
Commercial MBS		—		2,117		6		2,123
All other corporate		9		9,201		436		9,646
Total AFS fixed maturities		258		18,296		774		19,328
Trading fixed maturities		—		390		3		393
Equity securities		461		208		21		690
Assets of managed investment entities (“MIE”)		96		2,393		48		2,537
Variable annuity assets (separate accounts) (a)		—		616		—		616
Other investments		—		98		—		98
Total assets accounted for at fair value	$	815	$	22,001	$	846	$	23,662
Liabilities:
Liabilities of managed investment entities	$	65	$	—	$	2,258	$	2,323
Derivatives in annuity benefits accumulated		—		—		190		190
Total liabilities accounted for at fair value	$	65	$	—	$	2,448	$	2,513

(a) Variable annuity liabilities equal the fair value of variable annuity assets.

Changes in balances of Level 3 financial assets and liabilities

				Total
				realized/unrealized
				gains (losses)
				included in
							Other
	Balance at						comp.			Purchases						Transfer		Transfer			Balance at
	March 31,			Net			income			and			Sales and			into		out of			June 30,
	2011			income			(loss)			issuances			Settlements			Level 3		Level 3			2011
AFS fixed maturities:
State and municipal	$	21		$	—		$	—		$	53		$	—		$	10	$	—		$	84
Residential MBS		271			—			(2	)		17			(7	)		—		(24	)		255
Commercial MBS		9			—			—			—			—			1		—			10
All other corporate		424			1			6			46			(26	)		2		(71	)		382
Trading fixed maturities		1			—			—			—			—			—		—			1
Equity securities		21			—			—			—			—			—		—			21
Assets of MIE		54			—			—			9			(2	)		2		(10	)		53
Liabilities of MIE (*)		(2,316	)		(10	)		—			—			4			—		—			(2,322	)
Embedded derivatives		(234	)		(10	)		—			(60	)		5			—		—			(299	)

(*) Total realized/unrealized loss included in net income includes losses of $10 million related to liabilities outstanding as of June 30, 2011. See Note H — “Managed Investment Entities.”

				Total
				realized/unrealized
				gains (losses)
				included in
							Other		Purchases,
	Balance at						comp.		sales,			Transfer		Transfer			Balance at
	March 31,			Net			income		issuances and			into		out of			June 30,
	2010			income			(loss)		settlements			Level 3		Level 3			2010
AFS fixed maturities:
State and municipal	$	6		$	—		$	1		($3	)	$	17	$	—		$	21
Residential MBS		372			1			10		(12	)		2		(47	)		326
Commercial MBS		6			—			—		—			—		—			6
All other corporate		356			(11	)		9		42			46		(16	)		426
Trading fixed maturities		4			—			—		—			—		(3	)		1
Equity securities		24			—			—		—			—		—			24
Assets of MIE		100			1			—		(10	)		7		(52	)		46
Liabilities of MIE		(2,178	)		16			—		10			—		—			(2,152	)
Embedded derivatives		(131	)		13			—		(10	)		—		—			(128	)

				Total
				realized/unrealized
				gains (losses)
				included in
							Other
	Balance at						comp.			Purchases						Transfer		Transfer			Balance at
	Dec. 31,			Net			income			and			Sales and			into		out of			June 30,
	2010			income			(loss)			issuances			Settlements			Level 3		Level 3			2011
AFS fixed maturities:
State and municipal	$	20		$	—		$	1		$	53		$	—		$	10	$	—		$	84
Residential MBS		312			1			(2	)		17			(20	)		7		(60	)		255
Commercial MBS		6			—			—			—			—			4		—			10
All other corporate		436			(1	)		6			91			(37	)		24		(137	)		382
Trading fixed maturities		3			—			—			—			—			—		(2	)		1
Equity securities		21			—			2			—			(2	)		—		—			21
Assets of MIE		48			(1	)		—			16			(6	)		8		(12	)		53
Liabilities of MIE (*)		(2,258	)		(72	)		—			—			8			—		—			(2,322	)
Embedded derivatives		(190	)		(29	)		—			(90	)		10			—		—			(299	)

(*) Total realized/unrealized loss included in net income includes losses of $71 million related to liabilities outstanding as of June 30, 2011. See Note H — “Managed Investment Entities.”

							Total
							realized/unrealized
							gains (losses)
							included in
				Consolidate						Other			Purchases,
	Balance at			Managed						comp.			sales,			Transfer		Transfer			Balance at
	Dec. 31,			Inv.			Net			income			issuances and			into		out of			June 30,
	2009			Entities			income			(loss)			settlements			Level 3		Level 3			2010
AFS fixed maturities:
State and municipal	$	23		$	—		$	—		$	1			($3	)	$	17		($17	)	$	21
Residential MBS		435			—			2			11			6			2		(130	)		326
Commercial MBS		—			—			—			—			6			—		—			6
All other corporate		311			(6	)		(12	)		8			87			69		(31	)		426
Trading fixed maturities		1			—			—			—			4			—		(4	)		1
Equity securities		25			—			—			(1	)		—			—		—			24
Assets of MIE		—			90			5			—			(4	)		7		(52	)		46
Liabilities of MIE		—			(2,100	)		(90	)		—			38			—		—			(2,152	)
Embedded derivatives		(113	)		—			1			—			(16	)		—		—			(128	)

Fair value of financial instruments

	June 30, 2011				December 31, 2010
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
Assets:
Cash and cash equivalents	$	1,629	$	1,629	$	1,099	$	1,099
Fixed maturities		20,895		20,895		19,721		19,721
Equity securities		779		779		690		690
Mortgage loans		340		349		468		469
Policy loans		255		255		264		264
Other investments — derivatives		113		113		98		98
Assets of managed investment entities		2,591		2,591		2,537		2,537
Variable annuity assets (separate accounts)		624		624		616		616
Liabilities:
Annuity benefits accumulated(*)	$	13,915	$	13,512	$	12,696	$	12,233
Long-term debt		940		1,033		952		1,023
Liabilities of managed investment entities		2,430		2,430		2,323		2,323
Variable annuity liabilities (separate accounts)		624		624		616		616
Other liabilities — derivatives		18		18		14		14

(*) Excludes life contingent annuities in the payout phase.