Investments

6 Months Ended

Jun. 30, 2012

Investments [Abstract]

Investments

4. INVESTMENTS

Fixed Maturities and Equity Securities

The following tables provide information relating to fixed maturities and equity securities (excluding investments classified as trading) as of the dates indicated:

		June 30, 2012
										Other-than-
				Gross		Gross				temporary
		Amortized		Unrealized		Unrealized		Fair		Impairments
		Cost		Gains		Losses		Value		in AOCI (3)
		(in millions)
Fixed maturities, available-for-sale
U.S. Treasury securities and obligations of U.S.
	government authorities and agencies	$	11,951	$	3,520	$	11	$	15,460	$	0
Obligations of U.S. states and their political
	subdivisions		2,895		530		1		3,424		0
Foreign government bonds			74,770		6,230		138		80,862		0
Corporate securities			122,796		11,159		2,100		131,855		(6)
Asset-backed securities(1)			12,132		169		1,455		10,846		(1,121)
Commercial mortgage-backed securities			11,780		703		60		12,423		11
Residential mortgage-backed securities(2)			8,847		500		52		9,295		(12)
Total fixed maturities, available-for-sale		$	245,171	$	22,811	$	3,817	$	264,165	$	(1,128)
Equity securities, available-for-sale		$	6,654	$	1,240	$	191	$	7,703

(1)       Includes credit tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans, and other asset types.

(2)       Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.

(3)       Represents the amount of other-than-temporary impairment losses in “Accumulated other comprehensive income (loss),” or “AOCI,” which were not included in earnings. Amount excludes $359 million of net unrealized gains on impaired securities relating to changes in the value of such securities subsequent to the impairment measurement date.

	June 30, 2012
									Other-than-
			Gross		Gross				temporary
	Amortized		Unrealized		Unrealized		Fair		Impairments
	Cost		Gains		Losses		Value		in AOCI (4)
	(in millions)
Fixed maturities, held-to-maturity
Foreign government bonds	$	1,213	$	131	$	0	$	1,344	$	0
Corporate securities(1)		1,134		28		76		1,086		0
Asset-backed securities(2)		1,138		72		0		1,210		0
Commercial mortgage-backed securities		376		55		0		431		0
Residential mortgage-backed securities(3)		910		60		0		970		0
Total fixed maturities, held-to-maturity(1)	$	4,771	$	346	$	76	$	5,041	$	0

(1)       Excludes notes with amortized cost of $750 million (fair value, $785 million) which have been offset with the associated payables under a netting agreement.

(2)       Includes credit tranched securities primarily collateralized by non-sub-prime mortgages.

(3)       Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.

(4)       Represents the amount of other-than-temporary impairment losses in AOCI, which were not included in earnings. Amount excludes $1 million of net unrealized losses on impaired securities relating to changes in the value of such securities subsequent to the impairment measurement date.

		December 31, 2011
										Other-than-
				Gross		Gross				temporary
		Amortized		Unrealized		Unrealized		Fair		Impairments
		Cost		Gains		Losses		Value		in AOCI(3)
		(in millions)
Fixed maturities, available-for-sale
U.S. Treasury securities and obligations of U.S.
	government authorities and agencies	$	12,249	$	2,873	$	18	$	15,104	$	0
Obligations of U.S. states and their political
	subdivisions		2,664		393		2		3,055		0
Foreign government bonds			72,442		4,754		209		76,987		0
Corporate securities			119,800		10,088		3,015		126,873		(22)
Asset-backed securities(1)			12,346		172		1,825		10,693		(1,199)
Commercial mortgage-backed securities			11,519		669		108		12,080		8
Residential mortgage-backed securities(2)			9,404		531		79		9,856		(13)
Total fixed maturities, available-for-sale		$	240,424	$	19,480	$	5,256	$	254,648	$	(1,226)
Equity securities, available-for-sale		$	6,922	$	1,061	$	448	$	7,535

(1)       Includes credit tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans, and other asset types.

(2)       Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.

(3)       Represents the amount of other-than-temporary impairment losses in AOCI, which were not included in earnings. Amount excludes $223million of net unrealized gains on impaired securities relating to changes in the value of such securities subsequent to the impairment measurement date.

	December 31, 2011
									Other-than-
			Gross		Gross				temporary
	Amortized		Unrealized		Unrealized		Fair		Impairments
	Cost		Gains		Losses		Value		in AOCI (4)
	(in millions)
Fixed maturities, held-to-maturity
Foreign government bonds	$	1,260	$	128	$	0	$	1,388	$	0
Corporate securities(1)		1,157		21		98		1,080		0
Asset-backed securities(2)		1,213		62		0		1,275		0
Commercial mortgage-backed securities		428		69		0		497		0
Residential mortgage-backed securities(3)		1,049		65		0		1,114		0
Total fixed maturities, held-to-maturity(1)	$	5,107	$	345	$	98	$	5,354	$	0

• Excludes notes with amortized cost of $500 million (fair value, $519 million) which have been offset with the associated payables under a netting agreement.
• Includes credit tranched securities primarily collateralized by non-sub-prime mortgages.
• Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.
• Represents the amount of other-than-temporary impairment losses in AOCI, which were not included in earnings.

The amortized cost and fair value of fixed maturities by contractual maturities at June 30, 2012 are as follows:

		Available-for-Sale				Held-to-Maturity
		Amortized		Fair		Amortized		Fair
		Cost		Value		Cost		Value
		(in millions)
Due in one year or less		$	14,398	$	14,569	$	0	$	0
Due after one year through five years			45,276		46,568		66		68
Due after five years through ten years			53,953		58,122		403		410
Due after ten years(1)			98,785		112,342		1,878		1,952
Asset-backed securities			12,132		10,846		1,138		1,210
Commercial mortgage-backed securities			11,780		12,423		376		431
Residential mortgage-backed securities			8,847		9,295		910		970
	Total(1)	$	245,171	$	264,165	$	4,771	$	5,041

• Excludes notes with amortized cost of $750 million (fair value, $785 million) which have been offset with the associated payables under a netting agreement.

Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Asset-backed, commercial mortgage-backed and residential mortgage-backed securities are shown separately in the table above, as they are not due at a single maturity date.

The following table depicts the sources of fixed maturity proceeds and related investment gains (losses), as well as losses on impairments of both fixed maturities and equity securities:

			Three Months Ended				Six Months Ended
			June 30,				June 30,
			2012		2011		2012		2011
			(in millions)
Fixed maturities, available-for-sale
	Proceeds from sales		$	3,795	$	7,788	$	9,458	$	10,929
	Proceeds from maturities/repayments			5,296		5,327		10,285		9,258
	Gross investment gains from sales, prepayments, and maturities			141		244		268		442
	Gross investment losses from sales and maturities			(80)		(112)		(158)		(181)
Fixed maturities, held-to-maturity
	Gross investment gains from prepayments		$	0	$	0	$	0	$	0
	Proceeds from maturities/repayments			124		131		247		270
Equity securities, available-for-sale
	Proceeds from sales		$	1,068	$	1,206	$	2,150	$	1,686
	Gross investment gains from sales			92		212		214		309
	Gross investment losses from sales			(75)		(57)		(161)		(70)
Fixed maturity and equity security impairments
	Net writedowns for other-than-temporary impairment losses on
		fixed maturities recognized in earnings(1)	$	(93)	$	(153)	$	(205)	$	(257)
	Writedowns for impairments on equity securities			(41)		(37)		(90)		(59)

• Excludes the portion of other-than-temporary impairments recorded in “Other comprehensive income (loss),” representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of impairment.

As discussed in Note 2, a portion of certain other-than-temporary impairment (“OTTI”) losses on fixed maturity securities are recognized in “Other comprehensive income (loss)” (“OCI”). For these securities, the net amount recognized in earnings (“credit loss impairments”) represents the difference between the amortized cost of the security and the net present value of its projected future cash flows discounted at the effective interest rate implicit in the debt security prior to impairment. Any remaining difference between the fair value and amortized cost is recognized in OCI. The following tables set forth the amount of pre-tax credit loss impairments on fixed maturity securities held by the Company as of the dates indicated, for which a portion of the OTTI loss was recognized in OCI, and the corresponding changes in such amounts.

Credit losses recognized in earnings on fixed maturity securities held by the Company for which a portion of
	the OTTI loss was recognized in OCI
		Three Months		Six Months
		Ended		Ended
		June 30,		June 30,
		2012		2012
		(in millions)
Balance, beginning of period		$	1,465	$	1,475
Credit loss impairments previously recognized on securities which matured, paid down,
	prepaid or were sold during the period		(67)		(85)
Credit loss impairments previously recognized on securities impaired to fair value during
	the period(1)		0		(59)
Credit loss impairment recognized in the current period on securities not previously impaired			6		30
Additional credit loss impairments recognized in the current period on securities
	previously impaired		21		58
Increases due to the passage of time on previously recorded credit losses			16		29
Accretion of credit loss impairments previously recognized due to an increase in
	cash flows expected to be collected		(8)		(15)
Balance, end of period		$	1,433	$	1,433

		Three Months		Six Months
		Ended		Ended
		June 30,		June 30,
		2011		2011
		(in millions)
Balance, beginning of period		$	1,392	$	1,493
Credit loss impairments previously recognized on securities which matured, paid down,
	prepaid or were sold during the period		(69)		(237)
Credit loss impairments previously recognized on securities impaired to fair value during
	the period(1)		(30)		(31)
Credit loss impairment recognized in the current period on securities not previously
	impaired		9		26
Additional credit loss impairments recognized in the current period on securities previously
	impaired		112		158
Increases due to the passage of time on previously recorded credit losses			13		27
Accretion of credit loss impairments previously recognized due to an increase in
	cash flows expected to be collected		(8)		(17)
Balance, end of period		$	1,419	$	1,419

(1)        Represents circumstances where the Company determined in the current period that it intends to sell the security or it is more likely than not that it will be required to sell the security before recovery of the security's amortized cost.

Trading Account Assets Supporting Insurance Liabilities

The following table sets forth the composition of “Trading account assets supporting insurance liabilities” as of the dates indicated:

			June 30, 2012				December 31, 2011
			Amortized		Fair		Amortized		Fair
			Cost		Value		Cost		Value
			(in millions)
Short-term investments and cash equivalents			$	270	$	270	$	951	$	951
Fixed maturities:
	Corporate securities			11,260		12,086		10,297		11,036
	Commercial mortgage-backed securities			1,987		2,110		2,157		2,247
	Residential mortgage-backed securities(1)			1,825		1,891		1,786		1,844
	Asset-backed securities(2)			1,308		1,204		1,504		1,367
	Foreign government bonds			706		725		644		655
	U.S. government authorities and agencies and obligations
		of U.S. states		412		459		440		470
Total fixed maturities				17,498		18,475		16,828		17,619
Equity securities				1,029		984		1,050		911
Total trading account assets supporting insurance liabilities			$	18,797	$	19,729	$	18,829	$	19,481

• Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.
• Includes credit tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types.

The net change in unrealized gains and losses from trading account assets supporting insurance liabilities still held at period end, recorded within “Asset management fees and other income” included$17 million and $152 million of gains during the three months ended June 30, 2012 and 2011, respectively, and$280 million and$108 million of gains during the six months ended June 30, 2012 and 2011, respectively.

Other Trading Account Assets

The following table sets forth the composition of the“Other trading account assets” as of the dates indicated:

			June 30, 2012				December 31, 2011
			Amortized		Fair		Amortized		Fair
			Cost		Value		Cost		Value
		(in millions)
Short-term investments and cash equivalents			$	1	$	1	$	4	$	3
Fixed maturities:
	Asset-backed securities			356		316		698		652
	Residential mortgage-backed securities			164		86		186		96
	Corporate securities			797		799		557		555
	Commercial mortgage-backed securities			134		97		155		110
	U.S. government authorities and agencies and obligations
	of U.S. states			51		41		41		31
	Foreign government bonds			49		49		47		47
Total fixed maturities				1,551		1,388		1,684		1,491
Other				3		5		15		19
Equity securities				1,583		1,581		1,682		1,621
	Subtotal		$	3,138	$	2,975	$	3,385	$	3,134
Derivative instruments						2,661				2,411
Total other trading account assets			$	3,138	$	5,636	$	3,385	$	5,545

The net change in unrealized gains and losses from other trading account assets, excluding derivative instruments, still held at period end, recorded within “Asset management fees and other income” included $49 million of losses and$52million of gains during the three months ended June 30, 2012 and 2011, respectively, and$88million and$103million of gains during the six months ended June 30, 2012 and 2011, respectively.

Concentrations of Financial Instruments

The Company monitors its concentrations of financial instruments on an on-going basis, and mitigates credit risk by maintaining a diversified investment portfolio which limits exposure to any one issuer.

As of June 30, 2012 and December 31, 2011, the Company was not exposed to any concentrations of credit risk of any single issuer greater than 10% of the Company's stockholders' equity, other than securities of the U.S. government, certain U.S. government agencies and certain securities guaranteed by the U.S. government, as well as the securities disclosed below.

			June 30, 2012				December 31, 2011
			Amortized		Fair		Amortized		Fair
			Cost		Value		Cost		Value
Investments in Japanese government and government agency			(in millions)
		securities:
Fixed maturities, available-for-sale			$	61,855	$	66,608	$	60,323	$	63,846
Fixed maturities, held-to-maturity				1,213		1,344		1,260		1,388
Trading account assets supporting insurance liabilities				537		552		471		483
Other trading account assets				40		41		40		40
Short-term investments				0		0		0		0
Cash equivalents				1,521		1,521		0		0
	Total		$	65,166	$	70,066	$	62,094	$	65,757
			June 30, 2012				December 31, 2011
			Amortized		Fair		Amortized		Fair
			Cost		Value		Cost		Value
Investments in South Korean government and government			(in millions)
		agency securities:
Fixed maturities, available-for-sale			$	5,078	$	5,786	$	4,678	$	5,240
Fixed maturities, held-to-maturity				0		0		0		0
Trading account assets supporting insurance liabilities				17		18		17		18
Other trading account assets				4		4		2		2
Short-term investments				0		0		0		0
Cash equivalents				0		0		0		0
	Total		$	5,099	$	5,808	$	4,697	$	5,260

Commercial Mortgage and Other Loans

The Company's commercial mortgage and other loans are comprised as follows, as of the dates indicated:

		June 30, 2012					December 31, 2011
		Amount		% of			Amount		% of
		(in millions)		Total			(in millions)		Total
Commercial and agricultural mortgage loans by property type:
Office		$	6,477		19.2	%	$	6,391		19.8	%
Retail			8,389		24.8			7,309		22.7
Apartments/Multi-Family			5,013		14.8			5,277		16.4
Industrial			7,302		21.6			7,049		21.8
Hospitality			1,576		4.7			1,486		4.6
Other			2,861		8.5			2,707		8.4
Total commercial mortgage loans			31,618		93.6			30,219		93.7
Agricultural property loans			2,160		6.4			2,046		6.3
Total commercial and agricultural mortgage loans by property type			33,778		100.0	%		32,265		100.0	%
Valuation allowance			(299)					(313)
Total net commercial and agricultural mortgage loans by
	property type		33,479					31,952
Other loans
Uncollateralized loans			1,927					2,323
Residential property loans			927					1,034
Other collateralized loans			157					176
Total other loans			3,011					3,533
Valuation allowance			(47)					(54)
Total net other loans			2,964					3,479
Total commercial mortgage and other loans(1)		$	36,443				$	35,431

• Includes loans held at fair value.

The commercial mortgage and agricultural property loans are geographically dispersed throughout the United States, Canada and Asia with the largest concentrations in California (26%), New York (11%) and Texas (8%) at June 30, 2012.

Activity in the allowance for losses for all commercial mortgage and other loans, as of the dates indicated, is as follows:

		June 30, 2012
		Commercial		Agricultural		Residential		Other
		Mortgage		Property		Property		Collateralized		Uncollateralized
		Loans		Loans		Loans		Loans		Loans		Total
		(in millions)
Allowance for losses, beginning of year		$	294	$	19	$	16	$	18	$	20	$	367
Addition to / (release of) allowance of
	losses		1		1		(3)		(3)		0		(4)
Charge-offs, net of recoveries			(15)		0		0		(1)		0		(16)
Change in foreign exchange			(1)		0		0		0		0		(1)
Total Ending Balance		$	279	$	20	$	13	$	14	$	20	$	346
		December 31, 2011
		Commercial		Agricultural		Residential		Other
		Mortgage		Property		Property		Collateralized		Uncollateralized
		Loans		Loans		Loans		Loans		Loans		Total
		(in millions)
Allowance for losses, beginning of year		$	497	$	8	$	17	$	20	$	33	$	575
Addition to / (release of) allowance of
	losses		(94)		11		(2)		13		1		(71)
Charge-offs, net of recoveries			(109)		0		0		(15)		(15)		(139)
Change in foreign exchange			0		0		1		0		1		2
Total Ending Balance		$	294	$	19	$	16	$	18	$	20	$	367

The following tables set forth the allowance for credit losses and the recorded investment in commercial mortgage and other loans as of the dates indicated:

		June 30, 2012
		Commercial		Agricultural		Residential		Other
		Mortgage		Property		Property		Collateralized		Uncollateralized
		Loans		Loans		Loans		Loans		Loans		Total
Allowance for Credit Losses:		(in millions)
Ending balance: individually evaluated
	for impairment	$	109	$	12	$	0	$	14	$	0	$	135
Ending balance: collectively evaluated
	for impairment		170		8		13		0		20		211
Ending balance: loans acquired with
	deteriorated credit quality		0		0		0		0		0		0
Total ending balance		$	279	$	20	$	13	$	14	$	20	$	346
Recorded Investment:(1)
Ending balance gross of reserves:
	individually evaluated for impairment	$	1,534	$	49	$	0	$	100	$	8	$	1,691
Ending balance gross of reserves:
	collectively evaluated for impairment		30,084		2,111		927		57		1,919		35,098
Ending balance gross of reserves: loans
	acquired with deteriorated credit
	quality		0		0		0		0		0		0
Total ending balance, gross of reserves		$	31,618	$	2,160	$	927	$	157	$	1,927	$	36,789

• Recorded investment reflects the balance sheet carrying value gross of related allowance.

		December 31, 2011
		Commercial		Agricultural		Residential		Other
		Mortgage		Property		Property		Collateralized		Uncollateralized
		Loans		Loans		Loans		Loans		Loans		Total
Allowance for Credit Losses:		(in millions)
Ending balance: individually evaluated
	for impairment	$	120	$	11	$	0	$	18	$	0	$	149
Ending balance: collectively evaluated
	for impairment		174		8		16		0		20		218
Ending balance: loans acquired with
	deteriorated credit quality		0		0		0		0		0		0
Total ending balance		$	294	$	19	$	16	$	18	$	20	$	367
Recorded Investment:(1)
Ending balance gross of reserves:
	individually evaluated for impairment	$	1,903	$	45	$	0	$	110	$	92	$	2,150
Ending balance gross of reserves:
	collectively evaluated for impairment		28,316		2,001		1,034		66		2,231		33,648
Ending balance gross of reserves: loans
	acquired with deteriorated credit
	quality		0		0		0		0		0		0
Total ending balance, gross of reserves		$	30,219	$	2,046	$	1,034	$	176	$	2,323	$	35,798

• Recorded investment reflects the balance sheet carrying value gross of related allowance.

Impaired loans include those loans for which it is probable that all amounts due will not be collected according to the contractual terms of the loan agreement. Impaired commercial mortgage and other loans identified in management's specific review of probable loan losses and the related allowance for losses, as of the dates indicated are as follows:

		As of June 30, 2012
									Average
									Recorded
				Unpaid					Investment		Interest
		Recorded		Principal		Related			Before		Income
		Investment (1)		Balance		Allowance			Allowance (2)		Recognized (3)
		(in millions)
With no related allowance recorded:
Commercial mortgage loans:
	Industrial	$	15	$	15	$	0	$	11	$	1
	Retail		6		6		0		2		0
	Office		1		83		0		6		0
	Apartments/Multi-Family		0		0		0		7		0
	Hospitality		11		74		0		25		3
	Other		20		20		0		18		0
Total commercial mortgage loans			53		198		0		69		4
Agricultural property loans			0		0		0		0		0
Residential property loans			0		0		0		0		0
Other collateralized loans			0		0		0		0		0
Uncollateralized loans			5		13		0		6		0
Total with no related allowance		$	58	$	211	$	0	$	75	$	4
With an allowance recorded:
Commercial mortgage loans:
	Industrial	$	23	$	23	$	19	$	35	$	0
	Retail		73		73		15		69		2
	Office		33		33		4		34		1
	Apartments/Multi-Family		41		41		5		81		1
	Hospitality		90		90		55		103		1
	Other		78		78		11		100		2
Total commercial mortgage loans			338		338		109		422		7
Agricultural property loans			17		17		12		15		0
Residential property loans			0		0		0		0		0
Other collateralized loans			20		20		14		21		0
Uncollateralized loans			0		0		0		0		0
Total with related allowance		$	375	$	375	$	135	$	458	$	7
Total:
	Commercial mortgage loans	$	391	$	536	$	109	$	491	$	11
	Agricultural property loans		17		17		12		15		0
	Residential property loans		0		0		0		0		0
	Other collateralized loans		20		20		14		21		0
	Uncollateralized loans		5		13		0		6		0
Total		$	433	$	586	$	135	$	533	$	11

• Recorded investment reflects the balance sheet carrying value gross of related allowance.
• Average recorded investment represents the average of the beginning-of-period and all subsequent quarterly end-of-period balances.
• The interest income recognized is for the year-to-date income regardless of when the impairments occurred.

		As of December 31, 2011
									Average
									Recorded
				Unpaid					Investment		Interest
		Recorded		Principal		Related			Before		Income
		Investment (1)		Balance		Allowance			Allowance (2)		Recognized (3)
		(in millions)
With no related allowance recorded:
Commercial mortgage loans:
	Industrial	$	0	$	0	$	0	$	0	$	0
	Retail		0		0		0		0		0
	Office		2		84		0		1		0
	Apartments/Multi-Family		0		0		0		0		0
	Hospitality		0		0		0		23		0
	Other		17		17		0		11		1
Total commercial mortgage loans			19		101		0		35		1
Agricultural property loans			0		0		0		1		0
Residential property loans			0		0		0		0		0
Other collateralized loans			0		0		0		0		0
Uncollateralized loans			6		13		0		6		0
Total with no related allowance		$	25	$	114	$	0	$	42	$	1
With an allowance recorded:
Commercial mortgage loans:
	Industrial	$	54	$	54	$	19	$	36	$	1
	Retail		89		89		11		114		3
	Office		47		47		3		49		0
	Apartments/Multi-Family		102		102		19		197		4
	Hospitality		129		129		55		178		0
	Other		92		92		13		100		2
Total commercial mortgage loans			513		513		120		674		10
Agricultural property loans			19		19		11		14		0
Residential property loans			0		0		0		5		0
Other collateralized loans			21		21		18		31		2
Uncollateralized loans			0		0		0		13		0
Total with related allowance		$	553	$	553	$	149	$	737	$	12
Total:
	Commercial mortgage loans	$	532	$	614	$	120	$	709	$	11
	Agricultural property loans		19		19		11		15		0
	Residential property loans		0		0		0		5		0
	Other collateralized loans		21		21		18		31		2
	Uncollateralized loans		6		13		0		19		0
Total		$	578	$	667	$	149	$	779	$	13

• Recorded investment reflects the balance sheet carrying value gross of related allowance.
• Average recorded investment represents the average of the beginning-of-period and all subsequent quarterly end-of-period balances.
• The interest income recognized is for the year-to-date income regardless of when the impairments occurred.

The net carrying value of commercial and other loans held for sale by the Company as of June 30, 2012 and December 31, 2011 was $120 million and $514 million, respectively. In all these transactions, the Company pre-arranges that it will sell the loan to an investor. As of June 30, 2012 and December 31, 2011, all of the Company's commercial and other loans held for sale were collateralized, with collateral primarily consisting of office buildings, retail properties, apartment complexes and industrial buildings.

The following tables set forth the credit quality indicators as of June 30, 2012, based upon the recorded investment gross of allowance for credit losses.

Commercial mortgage loans - Industrial
			Debt Service Coverage Ratio - June 30, 2012
			Greater than 2.0X		1.8X to 2.0X		1.5X to <1.8X		1.2X to <1.5X		1.0X to <1.2X		Less than 1.0X		Grand Total
Loan-to-Value Ratio			(in millions)
0%-49.99%			$	765	$	171	$	230	$	251	$	26	$	37	$	1,480
50%-59.99%				291		69		339		330		79		108		1,216
60%-69.99%				730		36		511		378		445		85		2,185
70%-79.99%				437		433		178		314		209		89		1,660
80%-89.99%				0		19		0		106		102		373		600
90%-100%				0		0		0		0		0		112		112
Greater than 100%				0		0		0		16		6		27		49
Total Industrial			$	2,223	$	728	$	1,258	$	1,395	$	867	$	831	$	7,302
Commercial mortgage loans - Retail
			Debt Service Coverage Ratio - June 30, 2012
			Greater than 2.0X		1.8X to 2.0X		1.5X to <1.8X		1.2X to <1.5X		1.0X to <1.2X		Less than 1.0X		Grand Total
Loan-to-Value Ratio			(in millions)
0%-49.99%			$	1,173	$	311	$	354	$	128	$	46	$	2	$	2,014
50%-59.99%				842		736		281		177		55		9		2,100
60%-69.99%				1,211		440		1,113		331		103		22		3,220
70%-79.99%				27		10		240		538		14		19		848
80%-89.99%				0		0		0		20		22		8		50
90%-100%				0		0		5		48		0		38		91
Greater than 100%				0		0		0		28		8		30		66
Total Retail			$	3,253	$	1,497	$	1,993	$	1,270	$	248	$	128	$	8,389
Commercial mortgage loans - Office
			Debt Service Coverage Ratio - June 30, 2012
			Greater than 2.0X		1.8X to 2.0X		1.5X to <1.8X		1.2X to <1.5X		1.0X to <1.2X		Less than 1.0X		Grand Total
Loan-to-Value Ratio			(in millions)
0%-49.99%			$	1,807	$	161	$	283	$	190	$	6	$	70	$	2,517
50%-59.99%				549		62		290		20		137		67		1,125
60%-69.99%				821		89		306		307		87		65		1,675
70%-79.99%				127		10		0		20		619		15		791
80%-89.99%				0		0		0		55		123		97		275
90%-100%				0		0		0		17		0		17		34
Greater than 100%				0		0		0		17		34		9		60
Total Office			$	3,304	$	322	$	879	$	626	$	1,006	$	340	$	6,477
Commercial mortgage loans - Apartments/Multi-Family
			Debt Service Coverage Ratio - June 30, 2012
			Greater than 2.0X		1.8X to 2.0X		1.5X to <1.8X		1.2X to <1.5X		1.0X to <1.2X		Less than 1.0X		Grand Total
Loan-to-Value Ratio			(in millions)
0%-49.99%			$	785	$	175	$	304	$	204	$	192	$	39	$	1,699
50%-59.99%				197		43		107		210		108		19		684
60%-69.99%				424		89		224		350		98		0		1,185
70%-79.99%				159		21		326		431		69		16		1,022
80%-89.99%				0		0		0		16		152		52		220
90%-100%				0		0		0		15		2		133		150
Greater than 100%				0		0		0		18		7		28		53
Total Apartments/Multi-Family			$	1,565	$	328	$	961	$	1,244	$	628	$	287	$	5,013
Commercial mortgage loans - Hospitality
			Debt Service Coverage Ratio - June 30, 2012
			Greater than 2.0X		1.8X to 2.0X		1.5X to <1.8X		1.2X to <1.5X		1.0X to <1.2X		Less than 1.0X		Grand Total
Loan-to-Value Ratio			(in millions)
0%-49.99%			$	314	$	118	$	162	$	56	$	0	$	0	$	650
50%-59.99%				150		0		33		0		0		0		183
60%-69.99%				73		0		25		176		11		0		285
70%-79.99%				0		0		0		150		47		0		197
80%-89.99%				0		0		0		70		3		60		133
90%-100%				0		0		5		19		2		0		26
Greater than 100%				0		0		0		0		10		92		102
Total Hospitality			$	537	$	118	$	225	$	471	$	73	$	152	$	1,576
Commercial mortgage loans - Other
			Debt Service Coverage Ratio - June 30, 2012
			Greater than 2.0X		1.8X to 2.0X		1.5X to <1.8X		1.2X to <1.5X		1.0X to <1.2X		Less than 1.0X		Grand Total
Loan-to-Value Ratio			(in millions)
0%-49.99%			$	234	$	10	$	68	$	17	$	0	$	0	$	329
50%-59.99%				324		98		13		78		9		0		522
60%-69.99%				404		78		519		169		37		1		1,208
70%-79.99%				282		0		0		300		22		0		604
80%-89.99%				0		0		0		60		0		6		66
90%-100%				0		0		0		0		16		12		28
Greater than 100%				0		0		19		12		2		71		104
Total Other			$	1,244	$	186	$	619	$	636	$	86	$	90	$	2,861
Commercial mortgage loans - Agricultural Properties
			Debt Service Coverage Ratio - June 30, 2012
			Greater than 2.0X		1.8X to 2.0X		1.5X to <1.8X		1.2X to <1.5X		1.0X to <1.2X		Less than 1.0X		Grand Total
Loan-to-Value Ratio			(in millions)
0%-49.99%			$	534	$	136	$	310	$	425	$	150	$	2	$	1,557
50%-59.99%				58		3		118		42		0		0		221
60%-69.99%				155		5		178		0		0		0		338
70%-79.99%				0		0		0		0		0		0		0
80%-89.99%				0		0		0		0		0		44		44
90%-100%				0		0		0		0		0		0		0
Greater than 100%				0		0		0		0		0		0		0
Total Agricultural			$	747	$	144	$	606	$	467	$	150	$	46	$	2,160
Commercial mortgage and agricultural loans
			Debt Service Coverage Ratio - June 30, 2012
			Greater than 2.0X		1.8X to 2.0X		1.5X to <1.8X		1.2X to <1.5X		1.0X to <1.2X		Less than 1.0X		Grand Total
Loan-to-Value Ratio			(in millions)
0%-49.99%			$	5,612	$	1,082	$	1,711	$	1,271	$	420	$	150	$	10,246
50%-59.99%				2,411		1,011		1,181		857		388		203		6,051
60%-69.99%				3,818		737		2,876		1,711		781		173		10,096
70%-79.99%				1,032		474		744		1,753		980		139		5,122
80%-89.99%				0		19		0		327		402		640		1,388
90%-100%				0		0		10		99		20		312		441
Greater than 100%				0		0		19		91		67		257		434
	Total Commercial Mortgage
		and Agricultural	$	12,873	$	3,323	$	6,541	$	6,109	$	3,058	$	1,874	$	33,778

The following tables set forth the credit quality indicators as of December 31, 2011, based upon the recorded investment gross of allowance for credit losses.

Commercial mortgage loans - Industrial
			Debt Service Coverage Ratio - December 31, 2011
			Greater than 2.0X		1.8X to 2.0X		1.5X to <1.8X		1.2X to <1.5X		1.0X to <1.2X		Less than 1.0X		Grand Total
Loan-to-Value Ratio			(in millions)
0%-49.99%			$	627	$	311	$	211	$	254	$	19	$	48	$	1,470
50%-59.99%				299		86		315		246		73		46		1,065
60%-69.99%				922		287		380		308		373		105		2,375
70%-79.99%				175		86		136		448		402		95		1,342
80%-89.99%				0		0		0		106		114		236		456
90%-100%				19		0		0		0		0		162		181
Greater than 100%				16		0		0		0		19		125		160
Total Industrial			$	2,058	$	770	$	1,042	$	1,362	$	1,000	$	817	$	7,049
Commercial mortgage loans - Retail
			Debt Service Coverage Ratio - December 31, 2011
			Greater than 2.0X		1.8X to 2.0X		1.5X to <1.8X		1.2X to <1.5X		1.0X to <1.2X		Less than 1.0X		Grand Total
Loan-to-Value Ratio			(in millions)
0%-49.99%			$	1,188	$	251	$	523	$	87	$	18	$	3	$	2,070
50%-59.99%				627		507		590		54		48		3		1,829
60%-69.99%				351		539		739		485		82		17		2,213
70%-79.99%				0		47		289		608		18		0		962
80%-89.99%				0		31		0		9		17		23		80
90%-100%				0		0		18		14		16		40		88
Greater than 100%				0		0		0		21		46		0		67
Total Retail			$	2,166	$	1,375	$	2,159	$	1,278	$	245	$	86	$	7,309
Commercial mortgage loans - Office
			Debt Service Coverage Ratio - December 31, 2011
			Greater than 2.0X		1.8X to 2.0X		1.5X to <1.8X		1.2X to <1.5X		1.0X to <1.2X		Less than 1.0X		Grand Total
Loan-to-Value Ratio			(in millions)
0%-49.99%			$	1,756	$	365	$	181	$	132	$	23	$	31	$	2,488
50%-59.99%				572		106		210		198		16		9		1,111
60%-69.99%				612		412		79		460		61		38		1,662
70%-79.99%				65		0		31		15		618		15		744
80%-89.99%				0		0		0		138		52		54		244
90%-100%				0		0		16		0		0		18		34
Greater than 100%				0		0		17		71		8		12		108
Total Office			$	3,005	$	883	$	534	$	1,014	$	778	$	177	$	6,391
Commercial mortgage loans - Apartments/Multi-Family
			Debt Service Coverage Ratio - December 31, 2011
			Greater than 2.0X		1.8X to 2.0X		1.5X to <1.8X		1.2X to <1.5X		1.0X to <1.2X		Less than 1.0X		Grand Total
Loan-to-Value Ratio			(in millions)
0%-49.99%			$	726	$	176	$	272	$	172	$	215	$	61	$	1,622
50%-59.99%				95		16		257		156		59		31		614
60%-69.99%				425		18		341		356		76		88		1,304
70%-79.99%				107		99		146		729		130		47		1,258
80%-89.99%				0		15		0		107		0		52		174
90%-100%				0		0		13		16		2		77		108
Greater than 100%				0		0		0		36		21		140		197
Total Apartments/Multi-Family			$	1,353	$	324	$	1,029	$	1,572	$	503	$	496	$	5,277
Commercial mortgage loans - Hospitality
			Debt Service Coverage Ratio - December 31, 2011
			Greater than 2.0X		1.8X to 2.0X		1.5X to <1.8X		1.2X to <1.5X		1.0X to <1.2X		Less than 1.0X		Grand Total
Loan-to-Value Ratio			(in millions)
0%-49.99%			$	143	$	158	$	0	$	115	$	22	$	0	$	438
50%-59.99%				51		0		0		9		57		0		117
60%-69.99%				0		6		45		350		11		0		412
70%-79.99%				6		0		0		0		117		61		184
80%-89.99%				0		0		77		49		37		36		199
90%-100%				0		0		19		0		21		15		55
Greater than 100%				0		0		0		0		2		79		81
Total Hospitality			$	200	$	164	$	141	$	523	$	267	$	191	$	1,486
Commercial mortgage loans - Other
			Debt Service Coverage Ratio - December 31, 2011
			Greater than 2.0X		1.8X to 2.0X		1.5X to <1.8X		1.2X to <1.5X		1.0X to <1.2X		Less than 1.0X		Grand Total
Loan-to-Value Ratio			(in millions)
0%-49.99%			$	333	$	31	$	6	$	74	$	1	$	1	$	446
50%-59.99%				50		185		20		7		0		0		262
60%-69.99%				111		173		280		295		118		7		984
70%-79.99%				286		0		202		286		13		0		787
80%-89.99%				0		0		61		21		15		5		102
90%-100%				0		19		0		0		16		15		50
Greater than 100%				0		0		0		0		2		74		76
Total Other			$	780	$	408	$	569	$	683	$	165	$	102	$	2,707
Commercial mortgage loans - Agricultural Properties
			Debt Service Coverage Ratio - December 31, 2011
			Greater than 2.0X		1.8X to 2.0X		1.5X to <1.8X		1.2X to <1.5X		1.0X to <1.2X		Less than 1.0X		Grand Total
Loan-to-Value Ratio			(in millions)
0%-49.99%			$	383	$	123	$	340	$	427	$	154	$	0	$	1,427
50%-59.99%				70		120		8		39		0		3		240
60%-69.99%				155		5		181		0		0		0		341
70%-79.99%				0		0		0		0		0		0		0
80%-89.99%				0		0		0		0		0		0		0
90%-100%				0		0		0		0		0		38		38
Greater than 100%				0		0		0		0		0		0		0
Total Agricultural			$	608	$	248	$	529	$	466	$	154	$	41	$	2,046
Commercial mortgage and agricultural loans
			Debt Service Coverage Ratio - December 31, 2011
			Greater than 2.0X		1.8X to 2.0X		1.5X to <1.8X		1.2X to <1.5X		1.0X to <1.2X		Less than 1.0X		Grand Total
Loan-to-Value Ratio			(in millions)
0%-49.99%			$	5,156	$	1,415	$	1,533	$	1,261	$	452	$	144	$	9,961
50%-59.99%				1,764		1,020		1,400		709		253		92		5,238
60%-69.99%				2,576		1,440		2,045		2,254		721		255		9,291
70%-79.99%				639		232		804		2,086		1,298		218		5,277
80%-89.99%				0		46		138		430		235		406		1,255
90%-100%				19		19		66		30		55		365		554
Greater than 100%				16		0		17		128		98		430		689
	Total Commercial Mortgage
		and Agricultural	$	10,170	$	4,172	$	6,003	$	6,898	$	3,112	$	1,910	$	32,265

The following tables provide an aging of past due commercial mortgage and other loans as of the dates indicated, based upon the recorded investment gross of allowance for credit losses.

		As of June 30, 2012
														Total
								Greater		Greater				Commercial
								Than 90		Than 90				Mortgage
				30-59 Days		60-89 Days		Days -		Days - Not		Total Past		and Other
		Current		Past Due		Past Due		Accruing		Accruing		Due		Loans
		(in millions)
Commercial mortgage loans:
	Industrial	$	7,302	$	0	$	0	$	0	$	0	$	0	$	7,302
	Retail		8,384		0		0		0		5		5		8,389
	Office		6,444		5		0		0		28		33		6,477
	Apartments/Multi-Family		4,995		0		0		0		18		18		5,013
	Hospitality		1,571		0		0		0		5		5		1,576
	Other		2,850		5		0		0		6		11		2,861
Total commercial mortgage
	loans		31,546		10		0		0		62		72		31,618
Agricultural property loans			2,116		0		0		0		44		44		2,160
Residential property loans			894		13		4		0		16		33		927
Other collateralized loans			155		0		0		0		2		2		157
Uncollateralized loans			1,927		0		0		0		0		0		1,927
Total		$	36,638	$	23	$	4	$	0	$	124	$	151	$	36,789
		As of December 31, 2011
														Total
								Greater		Greater				Commercial
								Than 90		Than 90				Mortgage
				30-59 Days		60-89 Days		Days -		Days - Not		Total Past		and Other
		Current		Past Due		Past Due		Accruing		Accruing		Due		Loans
		(in millions)
Commercial mortgage loans:
	Industrial	$	7,047	$	0	$	2	$	0	$	0	$	2	$	7,049
	Retail		7,294		0		0		0		15		15		7,309
	Office		6,369		5		0		0		17		22		6,391
	Apartments/Multi-Family		5,207		0		0		0		70		70		5,277
	Hospitality		1,486		0		0		0		0		0		1,486
	Other		2,657		13		10		0		27		50		2,707
Total commercial mortgage
	loans		30,060		18		12		0		129		159		30,219
Agricultural property loans			2,005		0		1		1		39		41		2,046
Residential property loans			988		22		6		0		18		46		1,034
Other collateralized loans			174		0		0		0		2		2		176
Uncollateralized loans			2,323		0		0		0		0		0		2,323
Total		$	35,550	$	40	$	19	$	1	$	188	$	248	$	35,798

See Note 2 for further discussion regarding nonaccrual status loans. The following table sets forth commercial mortgage and other loans on nonaccrual status as of the dates indicated, based upon the recorded investment gross of allowance for credit losses:

		June 30, 2012		December 31, 2011
		(in millions)
Commercial mortgage loans:
	Industrial	$	42	$	54
	Retail		78		72
	Office		62		58
	Apartments/Multi-Family		59		129
	Hospitality		114		169
	Other		109		144
Total commercial mortgage loans			464		626
Agricultural property loans			48		44
Residential property loans			15		18
Other collateralized loans			20		15
Uncollateralized loans			8		8
Total		$	555	$	711

The following table sets forth the commercial mortgage and other loans acquired and sold during the three months ended June 30, 2012:

	Commercial		Agricultural		Residential		Other
	Mortgage		Property		Property		Collateralized		Uncollateralized
	Loans		Loans		Loans		Loans		Loans		Total
	(in millions)
Acquired(1)	$	0	$	0	$	0	$	0	$	47	$	47
Sold(2)		0		0		0		0		0		0

• Reported at purchase price of commercial mortgage and other loans acquired.
• Reported at book value of commercial mortgage and other loans sold.

The following tables provide information about commercial mortgage and other loans involved in a troubled debt restructuring as of the dates indicated. The pre-modification outstanding recorded investment has been adjusted for any partial payoffs, and the table excludes troubled debt restructurings where we have received assets, other than loans, in full satisfaction of the loan. See Note 2 for additional information relating to the accounting for troubled debt restructurings.

		Three Months Ended June 30, 2012				Six Months Ended June 30, 2012
		Adjusted				Adjusted
		Pre-Modification		Post-Modification		Pre-Modification		Post-Modification
		Outstanding		Outstanding		Outstanding		Outstanding
		Recorded		Recorded		Recorded		Recorded
		Investment		Investment		Investment		Investment
		(in millions)
Commercial mortgage loans:
	Industrial	$	0	$	0	$	0	$	0
	Retail		0		0		0		0
	Office		0		0		5		5
	Apartments/Multi-Family		0		0		0		0
	Hospitality		0		0		0		0
	Other		15		13		15		13
Total commercial mortgage loans			15		13		20		18
Agricultural property loans			0		0		0		0
Residential property loans			0		0		0		0
Other collateralized loans			0		0		0		0
Uncollateralized loans			0		0		0		0
Total		$	15	$	13	$	20	$	18

The amount of payment defaults during the period on commercial mortgage and other loans that were modified as a troubled debt restructuring within the last 12 months was less than $1 million as of June 30, 2012.

As of June 30, 2012, the Company committed to fund $6 million to borrowers that have been involved in a troubled debt restructuring.

Net Investment Income

Net investment income for the three and six months ended June 30, 2012 and 2011 was from the following sources:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2012		2011		2012		2011
		(in millions)
Fixed maturities, available-for-sale	$	2,416	$	2,374	$	4,817	$	4,557
Fixed maturities, held-to-maturity		34		31		68		68
Equity securities, available-for-sale		86		108		162		181
Trading account assets		220		208		451		419
Commercial mortgage and other loans		484		473		971		949
Policy loans		147		149		295		293
Broker-dealer related receivables		0		0		0		0
Short-term investments and cash equivalents		12		18		24		31
Other long-term investments		71		70		111		149
Gross investment income		3,470		3,431		6,899		6,647
Less: investment expenses		(112)		(104)		(221)		(202)
Net investment income	$	3,358	$	3,327	$	6,678	$	6,445

Realized Investment Gains (Losses), Net

Realized investment gains (losses), net, for the three and six months ended June 30, 2012 and 2011,were from the following sources:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2012		2011		2012		2011
	(in millions)
Fixed maturities	$	(32)	$	(21)	$	(95)	$	4
Equity securities		(24)		118		(37)		180
Commercial mortgage and other loans		10		23		21		34
Investment real-estate		(70)		(9)		(67)		(12)
Joint ventures and limited partnerships		6		59		2		58
Derivatives(1)		1,874		297		555		136
Other		(1)		1		0		18
Realized investment gains (losses), net	$	1,763	$	468	$	379	$	418

(1) Includes the offset of hedged items in qualifying effective hedge relationships prior to maturity or termination.

Net Unrealized Investment Gains (Losses)

Net unrealized investment gains and losses on securities classified as “available-for-sale” and certain other long-term investments and other assets are included in the Consolidated Statements of Financial Position as a component of “Accumulated other comprehensive income (loss),” or “AOCI.” Changes in these amounts include reclassification adjustments to exclude from “Other comprehensive income (loss)” those items that are included as part of “Net income” for a period that had been part of “Other comprehensive income (loss)” in earlier periods. The amounts for the periods indicated below, split between amounts related to fixed maturity securities on which an OTTI loss has been recognized, and all other net unrealized investment gains and losses, are as follows:

Net Unrealized Investment Gains and Losses on Fixed Maturity Securities on which an OTTI loss has been recognized

				Deferred
				Policy
				Acquisition								Accumulated
				Costs,								Other
				Deferred								Comprehensive
		Net		Sales								Income (Loss)
		Unrealized		Inducements,						Deferred		Related To Net
		Gains (Losses)		and Value		Future				Income Tax		Unrealized
		on		of Business		Policy		Policyholders'		(Liability)		Investment
		Investments		Acquired		Benefits		Dividends		Benefit		Gains (Losses)
		(in millions)
Balance, December 31, 2011		$	(1,003)	$	16	$	14	$	466	$	269	$	(238)
Net investment gains (losses) on
	investments arising during the
	period		125								(44)		81
Reclassification adjustment for (gains)
	losses included in net income		194								(68)		126
Reclassification adjustment for OTTI
	losses excluded from net income(1)		(85)								30		(55)
Impact of net unrealized investment
	(gains) losses on deferred policy
	acquisition costs, deferred sales
	inducements and value of
	business acquired				(2)						0		(2)
Impact of net unrealized investment
	(gains) losses on future policy
	benefits						(4)				1		(3)
Impact of net unrealized investment
	(gains) losses on policyholders'
	dividends								(92)		32		(60)
Balance, June 30, 2012		$	(769)	$	14	$	10	$	374	$	220	$	(151)

• Represents “transfers in” related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss.

All Other Net Unrealized Investment Gains and Losses in AOCI

				Deferred
				Policy
				Acquisition								Accumulated
				Costs,								Other
				Deferred								Comprehensive
		Net		Sales								Income (Loss)
		Unrealized		Inducements,						Deferred		Related To Net
		Gains (Losses)		and Value		Future				Income Tax		Unrealized
		on		of Business		Policy		Policyholders'		(Liability)		Investment
		Investments(1)		Acquired		Benefits		Dividends		Benefit		Gains (Losses)
		(in millions)
Balance, December 31, 2011		$	15,748	$	(1,182)	$	(1,269)	$	(4,319)	$	(2,935)	$	6,043
Net investment gains (losses) on
	investments arising during the
	period		5,048								(1,774)		3,274
Reclassification adjustment for (gains)
	losses included in net income		(45)								16		(29)
Reclassification adjustment for OTTI
	losses excluded from net income(2)		85								(30)		55
Impact of net unrealized investment
	(gains) losses on deferred policy
	acquisition costs, deferred sales
	inducements and value of
	business acquired				(95)						33		(62)
Impact of net unrealized investment
	(gains) losses on future policy
	benefits						(102)				36		(66)
Impact of net unrealized investment
	(gains) losses on policyholders'
	dividends								(709)		248		(461)
Balance, June 30, 2012		$	20,836	$	(1,277)	$	(1,371)	$	(5,028)	$	(4,406)	$	8,754

• Includes cash flow hedges. See Note 14for information on cash flow hedges.
• Represents “transfers out” related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss.

The table below presents net unrealized gains (losses) on investments by asset class as of the dates indicated:

	June 30,		December 31,
	2012		2011
	(in millions)
Fixed maturity securities on which an OTTI loss has been recognized	$	(769)	$	(1,003)
Fixed maturity securities, available-for-sale - all other		19,763		15,227
Equity securities, available-for-sale		1,049		613
Derivatives designated as cash flow hedges (1)		(9)		(86)
Other investments (2)		33		(6)
Net unrealized gains (losses) on investments	$	20,067	$	14,745

• See Note 14 for more information on cash flow hedges.
• As of June 30, 2012, includes $79 million of net unrealized losses on held-to-maturity securities that were previously transferred from available-for-sale. Also includes net unrealized gains on certain joint ventures that areincluded in “Other assets.”

Duration of Gross Unrealized Loss Positions for Fixed Maturities

The following table shows the fair value and gross unrealized losses aggregated by investment category and length of time that individual fixed maturity securities have been in a continuous unrealized loss position, as of the dates indicated:

			June 30, 2012
			Less than twelve months				Twelve months or more				Total
			Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
			(in millions)
Fixed maturities(1)
U.S. Treasury securities and obligations of
	U.S. government authorities and agencies		$	432	$	6	$	57	$	5	$	489	$	11
Obligations of U.S. states and their political
	subdivisions			59		0		5		1		64		1
Foreign government bonds				1,686		117		155		21		1,841		138
Corporate securities				14,494		472		10,158		1,704		24,652		2,176
Commercial mortgage-backed securities				1,356		25		246		35		1,602		60
Asset-backed securities				1,130		23		4,200		1,432		5,330		1,455
Residential mortgage-backed securities				210		4		450		48		660		52
		Total	$	19,367	$	647	$	15,271	$	3,246	$	34,638	$	3,893

• Includes $600million of fair value and $76million of gross unrealized losses at June 30, 2012, on securities classified as held-to-maturity, a portion of which are not reflected in “Accumulated other comprehensive income (loss).”

			December 31, 2011
			Less than twelve months				Twelve months or more				Total
			Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
			(in millions)
Fixed maturities(1)
U.S. Treasury securities and obligations of
	U.S. government authorities and agencies		$	870	$	8	$	130	$	10	$	1,000	$	18
Obligations of U.S. states and their political
	subdivisions			7		0		46		2		53		2
Foreign government bonds				4,017		182		306		27		4,323		209
Corporate securities				21,419		1,144		9,691		1,969		31,110		3,113
Commercial mortgage-backed securities				917		61		362		47		1,279		108
Asset-backed securities				2,746		40		4,134		1,785		6,880		1,825
Residential mortgage-backed securities				422		19		378		60		800		79
		Total	$	30,398	$	1,454	$	15,047	$	3,900	$	45,445	$	5,354

• Includes $706 million of fair value and $98 million of gross unrealized losses at December 31, 2011, on securities classified as held-to-maturity, a portion of which are not reflected in “Accumulatedother comprehensive income (loss).”

The gross unrealized losses at June 30, 2012and December 31, 2011,are composed of $2,673million and $3,535million, respectively, related to high or highest quality securities based on NAIC or equivalent rating and $1,220million and $1,819million, respectively, related to other than high or highest quality securities based on NAIC or equivalent rating. At June 30, 2012, $2,376million of the gross unrealized losses represented declines in value of greater than 20%, $318 million of which had been in that position for less than six months, as compared to $3,478million at December 31, 2011, that represented declines in value of greater than 20%, $871 million of which had been in that position for less than six months. At June 30, 2012, the $3,246million of gross unrealized losses of twelve months or more were concentrated in asset-backed securities, and in the manufacturing,public utilities, and finance sectors of the Company's corporate securities. At December 31, 2011, the $3,900million of gross unrealized losses of twelve months or more were concentrated in asset-backed securities, and in the manufacturing,finance, and public utilities sectors of the Company's corporate securities. In accordance with its policy described in Note 2, the Company concluded that an adjustment to earnings for other-than-temporary impairments for these securities was not warranted at June 30, 2012 or December 31, 2011. These conclusions are based on a detailed analysis of the underlying credit and cash flows on each security. The gross unrealized losses are primarily attributable to foreign currency movements, credit spread widening and increased liquidity discounts. At June 30, 2012, the Company does not intend to sell the securities and it is not more likely than not that the Company will be required to sell the securities before the anticipated recovery of its remaining amortized cost basis.

Duration of Gross Unrealized Loss Positions for Equity Securities

The following table shows the fair value and gross unrealized losses aggregated by length of time that individual equity securities have been in a continuous unrealized loss position, as of the following dates:

	June 30, 2012
	Less than twelve months				Twelve months or more				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
	(in millions)
Equity securities, available-for-sale	$	1,802	$	191	$	0	$	0	$	1,802	$	191
	December 31, 2011
	Less than twelve months				Twelve months or more				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
	(in millions)
Equity securities, available-for-sale	$	2,602	$	448	$	0	$	0	$	2,602	$	448

At June 30, 2012, $39 million of the gross unrealized losses represented declines of greater than 20%, $34 million of which had been in that position for less than six months. At December 31, 2011, $236million of the gross unrealized losses represented declines of greater than 20%, $225 million of which had been in that position for less than six months. In accordance with its policy described in Note 2, the Company concluded that an adjustment for other-than-temporary impairments for these equity securities was not warranted at June 30, 2012 or December 31, 2011.