Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2011

Fair Value Measurements [Abstract]

Assets and liabilities measured at fair value

	Level 1		Level 2		Level 3		Total
September 30, 2011
Assets:
Available for sale (“AFS”) fixed maturities:
U.S. Government and government agencies	$	234	$	188	$	—	$	422
States, municipalities and political subdivisions		—		3,697		72		3,769
Foreign government		—		267		—		267
Residential MBS		—		3,540		284		3,824
Commercial MBS		—		2,774		28		2,802
All other corporate		9		10,023		436		10,468
Total AFS fixed maturities		243		20,489		820		21,552
Trading fixed maturities		—		440		1		441
Equity securities		777		129		24		930
Assets of managed investment entities (“MIE”)		132		2,267		40		2,439
Variable annuity assets (separate accounts) (a)		—		515		—		515
Other investments		—		47		—		47
Total assets accounted for at fair value	$	1,152	$	23,887	$	885	$	25,924
Liabilities:
Liabilities of managed investment entities	$	47	$	—	$	2,182	$	2,229
Derivatives in annuity benefits accumulated		—		—		332		332
Total liabilities accounted for at fair value	$	47	$	—	$	2,514	$	2,561
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
	June 30,			Net			income			and			Sales and			into		out of			September 30,
	2011			income			(loss)			issuances			Settlements			Level 3		Level 3			2011
AFS fixed maturities:
State and municipal	$	84		$	—		$	4		$	—		$	(3	)	$	—	$	(13	)	$	72
Residential MBS		255			1			(4	)		25			(9	)		24		(8	)		284
Commercial MBS		10			—			—			9			—			9		—			28
All other corporate		382			2			11			32			(14	)		46		(23	)		436
Trading fixed maturities		1			—			—			—			—			—		—			1
Equity securities		21			—			(1	)		2			—			2		—			24
Assets of MIE		53			(6	)		—			5			(7	)		—		(5	)		40
Liabilities of MIE (*)		(2,322	)		89			—			—			51			—		—			(2,182	)
Embedded derivatives		(299	)		31			—			(71	)		7			—		—			(332	)

(*) Total realized/unrealized loss included in net income includes losses of $89 million related to liabilities outstanding as of September 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
	June 30,			Net			income		issuances and			into		out of			September 30,
	2010			income			(loss)		settlements			Level 3		Level 3			2010
AFS fixed maturities:
State and municipal	$	21		$	—		$	—	$	—		$	—	$	—		$	21
Residential MBS		326			4			11		5			7		(61	)		292
Commercial MBS		6			(1	)		—		—			—		—			5
All other corporate		426			—			7		14			27		(22	)		452
Trading fixed maturities		1			—			—		—			—		—			1
Equity securities		24			—			—		—			—		(3	)		21
Assets of MIE		46			—			—		(4	)		—		—			42
Liabilities of MIE		(2,152	)		(51	)		—		4			—		—			(2,199	)
Embedded derivatives		(128	)		(26	)		—		(16	)		—		—			(170	)

				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			September 30,
	2010			income			(loss)			issuances			Settlements			Level 3		Level 3			2011
AFS fixed maturities:
State and municipal	$	20		$	—		$	5		$	53		$	(3	)	$	10	$	(13	)	$	72
Residential MBS		312			2			(6	)		42			(29	)		31		(68	)		284
Commercial MBS		6			—			—			9			—			13		—			28
All other corporate		436			1			17			123			(51	)		70		(160	)		436
Trading fixed maturities		3			—			—			—			—			—		(2	)		1
Equity securities		21			—			1			2			(2	)		2		—			24
Assets of MIE		48			(7	)		—			21			(13	)		8		(17	)		40
Liabilities of MIE (*)		(2,258	)		17			—			—			59			—		—			(2,182	)
Embedded derivatives		(190	)		2			—			(161	)		17			—		—			(332	)

(*) Total realized/unrealized loss included in net income includes losses of $19 million related to liabilities outstanding as of September 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			September 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			—			6			22			11			9		(191	)		292
Commercial MBS		—			—			(1	)		—			6			—		—			5
All other corporate		311			(6	)		(12	)		15			101			96		(53	)		452
Trading fixed maturities		1			—			—			—			4			—		(4	)		1
Equity securities		25			—			—			(1	)		—			—		(3	)		21
Assets of MIE		—			90			5			—			(8	)		7		(52	)		42
Liabilities of MIE		—			(2,100	)		(141	)		—			42			—		—			(2,199	)
Embedded derivatives		(113	)		—			(25	)		—			(32	)		—		—			(170	)

Fair value of financial instruments

	September 30, 2011				December 31, 2010
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
Assets:
Cash and cash equivalents	$	991	$	991	$	1,099	$	1,099
Fixed maturities		21,993		21,993		19,721		19,721
Equity securities		930		930		690		690
Mortgage loans		384		387		468		469
Policy loans		253		253		264		264
Other investments — derivatives		47		47		98		98
Assets of managed investment entities		2,439		2,439		2,537		2,537
Variable annuity assets (separate accounts)		515		515		616		616
Liabilities:
Annuity benefits accumulated(*)	$	14,582	$	14,437	$	12,696	$	12,233
Long-term debt		937		1,023		952		1,023
Liabilities of managed investment entities		2,229		2,229		2,323		2,323
Variable annuity liabilities (separate accounts)		515		515		616		616
Other liabilities — derivatives		24		24		14		14

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