Note 7. Investment gains/losses

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


	Second Quarter						First Six Months
	2013			2012			2013		2012
Fixed maturity securities —
Gross gains from sales and other disposals	$	67		$	58		$	82	$	91
Gross losses from sales and other disposals		(38	)		(329	)		(92)		(345)
Equity securities —
Gross gains from sales and other disposals		261			385			370		573
Gross losses from sales and other disposals		(19	)		(7	)		(20)		(7)
OTTI losses		—			—			(85)		(337)
Other		221			18			742		44

	$	492		$	125		$	997	$	19

Investment gains/losses are reflected in the Consolidated Statements of Earnings as follows (in millions).
Insurance and other	$	455		$	102		$	889	$	(5)
Finance and financial products		37			23			108		24

	$	492		$	125		$	997	$	19

We record investments in equity and fixed maturity securities that are classified as available-for-sale at fair value with the difference between fair value and cost recorded 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 six months 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. Other investment gains/losses in 2013 primarily consisted of net gains related to the GS and GE warrants.