Note 7. Investment gains/losses

Investment gains/losses, including other-than-temporary impairment (“OTTI”) losses, are summarized below (in millions).


	First Quarter
	2013			2012
Fixed maturity securities —
Gross gains from sales and other disposals	$	15		$	33
Gross losses from sales and other disposals		(54	)		(16	)
Equity securities —
Gross gains from sales and other disposals		109			188
Gross losses from sales and other disposals		(1	)		—
OTTI losses		(85	)		(337	)
Other		521			26

	$	505		$	(106	)

Investment gains/losses are reflected in the Consolidated Statements of Earnings as follows.


Insurance and other	$	434	$	(107	)
Finance and financial products		71		1

	$	505	$	(106	)

We record investments in equity and fixed maturity securities classified as available-for-sale at fair value and record the difference between fair value and cost in other comprehensive income. OTTI losses recognized in earnings represent reductions in the cost basis of the investment, but not the fair value. Accordingly, the OTTI losses that are included in earnings are generally offset by a corresponding credit to other comprehensive income and therefore have no net effect on shareholders’ equity as of the balance sheet date. In the first quarter of 2013 and 2012, the OTTI losses related to bonds issued by Texas Competitive Electric Holdings. In recognizing these OTTI losses, we concluded that we were unlikely to receive all of the remaining contractual interest and principal amounts when due.