Investments (Tables)

9 Months Ended

Sep. 30, 2011

Available for sale fixed maturities and equity securities


	September 30, 2011									December 31, 2010
	Amortized		Fair		Gross Unrealized					Amortized		Fair		Gross Unrealized
	Cost		Value		Gains		Losses			Cost		Value		Gains		Losses

Fixed maturities:
U.S. Government and government agencies	$	401	$	422	$	21	$	—		$	453	$	467	$	15	$	(1	)
States, municipalities and political subdivisions		3,521		3,769		252		(4	)		2,927		2,939		53		(41	)
Foreign government		249		267		18		—			269		278		9		—
Residential MBS		3,771		3,824		198		(145	)		3,781		3,875		222		(128	)
Commercial MBS		2,635		2,802		178		(11	)		1,972		2,123		153		(2	)
All other corporate		9,720		10,468		810		(62	)		9,088		9,646		602		(44	)


Total fixed maturities	$	20,297	$	21,552	$	1,477	$	(222	)	$	18,490	$	19,328	$	1,054	$	(216	)


Common stocks	$	629	$	788	$	198	$	(39	)	$	312	$	543	$	232	$	(1	)


Perpetual preferred stocks	$	146	$	142	$	5	$	(9	)	$	146	$	147	$	6	$	(5	)

Available for sale securities in a continuous unrealized loss position


	Less Than Twelve Months								Twelve Months or More
	Unrealized			Fair		Fair Value as			Unrealized			Fair		Fair Value as
	Loss			Value		% of Cost			Loss			Value		% of Cost
September 30, 2011
Fixed maturities:
U.S. Government and government agencies	$	—		$	31		100	%	$	—		$	—		—	%
States, municipalities and political subdivisions		(2	)		162		99	%		(2	)		48		96	%
Foreign government		—			—		—	%		—			—		—	%
Residential MBS		(40	)		942		96	%		(105	)		444		81	%
Commercial MBS		(11	)		285		96	%		—			7		100	%
All other corporate		(48	)		1,146		96	%		(14	)		81		85	%


Total fixed maturities	$	(101	)	$	2,566		96	%	$	(121	)	$	580		83	%


Common Stocks	$	(39	)	$	260		87	%	$	—		$	—		—	%


Perpetual Preferred Stocks	$	(3	)	$	43		93	%	$	(6	)	$	34		85	%


December 31, 2010
Fixed maturities:
U.S. Government and government agencies	$	(1	)	$	86		99	%	$	—		$	—		—	%
States, municipalities and political subdivisions		(38	)		1,180		97	%		(3	)		40		93	%
Foreign government		—			37		99	%		—			—		—	%
Residential MBS		(11	)		412		97	%		(117	)		551		82	%
Commercial MBS		(2	)		83		98	%		—			15		97	%
All other corporate		(24	)		1,020		98	%		(20	)		275		93	%


Total fixed maturities	$	(76	)	$	2,818		97	%	$	(140	)	$	881		86	%


Common Stocks	$	—		$	21		99	%	$	(1	)	$	4		88	%


Perpetual Preferred Stocks	$	—		$	22		98	%	$	(5	)	$	37		88	%

Rollforward of cumulative credit portion of other-than-temporary impairments on fixed maturity securities


	2011			2010
Balance at June 30	$	171		$	121
Additional credit impairments on:
Previously impaired securities		8			11
Securities without prior impairments		2			1
Reductions — disposals		(1	)		—


Balance at September 30	$	180		$	133


Balance at January 1	$	143		$	99
Additional credit impairments on:
Previously impaired securities		37			34
Securities without prior impairments		7			8
Reductions — disposals		(7	)		(8	)


Balance at September 30	$	180		$	133

Available for sale fixed maturity securities by contractual maturity date


	Amortized		Fair Value
	Cost		Amount		%
Maturity
One year or less	$	544	$	558		2	%
After one year through five years		5,076		5,367		25
After five years through ten years		6,326		6,859		32
After ten years		1,945		2,142		10

		13,891		14,926		69
MBS		6,406		6,626		31

Total	$	20,297	$	21,552		100	%

Components of the net unrealized gain on securities, included in Accumulated Other Comprehensive Income


				Deferred Tax and
				Amounts Attributable
				to Noncontrolling
	Pre-tax			Interests			Net
September 30, 2011
Unrealized gain on:
Fixed maturity securities	$	1,255		$	(447	)	$	808
Equity securities		155			(54	)		101
Deferred policy acquisition costs		(535	)		187			(348	)
Annuity benefits and other liabilities		7			(2	)		5

	$	882		$	(316	)	$	566


December 31, 2010
Unrealized gain on:
Fixed maturity securities	$	838		$	(295	)	$	543
Equity securities		232			(82	)		150
Deferred policy acquisition costs		(340	)		118			(222	)
Annuity benefits and other liabilities		6			(2	)		4

	$	736		$	(261	)	$	475

Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments


							Mortgage
							Loans									Noncon-
	Fixed			Equity			and Other						Tax			trolling
	Maturities			Securities			Investments			Other(a)			Effects			Interests			Total
Quarter ended September 30, 2011
Realized before impairments	$	27		$	6		$	(15	)	$	—		$	(6	)	$	—		$	12
Realized — impairments		(12	)		(2	)		—			4			3			—			(7	)
Change in Unrealized		172			(75	)		—			(100	)		2			(2	)		(3	)

Quarter ended September 30, 2010
Realized before impairments	$	46		$	27		$	(1	)	$	(4	)	$	(23	)	$	(1	)	$	44
Realized — impairments		(12	)		(1	)		(2	)		4			4			—			(7	)
Change in Unrealized		498			(8	)		—			(177	)		(109	)		(4	)		200

Nine months ended September 30, 2011
Realized before impairments	$	51		$	41		$	(22	)	$	(2	)	$	(24	)	$	(1	)	$	43
Realized — impairments		(49	)		(2	)		(4	)		14			14			—			(27	)
Change in Unrealized		417			(77	)		—			(194	)		(51	)		(4	)		91

Nine months ended September 30, 2010
Realized before impairments	$	115		$	29		$	(15	)	$	(9	)	$	(41	)	$	(2	)	$	77
Realized — impairments		(62	)		(1	)		(5	)		20			17			—			(31	)
Change in Unrealized		1,131			(11	)		—			(434	)		(240	)		(6	)		440


(a)		Primarily adjustments to deferred policy acquisition costs related to annuities.

Gross realized gains and losses on available for sale fixed maturity and equity security investments


	Nine months ended
	September 30,
	2011			2010
Fixed maturities:
Gross gains	$	57		$	74
Gross losses		(5	)		(10	)

Equity securities:
Gross gains		42			29
Gross losses		(1	)		—

- Definition

Tabular disclosure of the amount of other than temporary impairment (OTTI) related to credit losses recognized in earnings including: (a) the beginning balance of the amount related to credit losses on debt securities held by the investor at the beginning of the period for which a portion of an OTTI was recognized in other comprehensive income; (b) additions for the amount related to the credit loss for which an OTTI was not previously recognized; (c) reductions for securities sold during the period (realized); (d) reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the investor intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis; (e) additional increases to the amount related to the credit loss for which an OTTI was previously recognized when the investor does not intend to sell the security and it is not more likely than not that the investor will be required to sell the security before recovery of its amortized cost basis; (f) reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security; and (g) the ending balance of the amount related to credit losses on debt securities held by the entity at the end of the period for which a portion of an OTTI was recognized in other comprehensive income.

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