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Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2013
Fair Value Hierarchy for Assets Measured at Fair Value on a Recurring Basis

(In millions)
 
Quoted prices in
active markets for
identical assets
(Level 1)
 
 
 
Significant 
unobservable 
inputs 
(Level 3)
 
 
At December 31, 2013
 
 
Significant other
observable inputs
(Level 2)
 
 
Total
Fixed maturities, available for sale:
 
 

 
 

 
 

 
 

States, municipalities and political subdivisions
 
$

 
$
3,211

 
$

 
$
3,211

Convertibles and bonds with warrants attached
 

 
17

 

 
17

United States government
 
7

 

 

 
7

Government-sponsored enterprises
 

 
200

 

 
200

Foreign government
 

 
10

 

 
10

Commercial mortgage-backed
 

 
143

 

 
143

Corporate
 

 
5,531

 
2

 
5,533

Subtotal
 
7

 
9,112

 
2

 
9,121

Common equities, available for sale
 
4,213

 

 

 
4,213

Nonredeemable preferred equities, available for sale
 

 
160

 
2

 
162

Separate accounts taxable fixed maturities
 

 
682

 

 
682

Top Hat Savings Plan (included in Other assets)
 
14

 

 

 
14

Total
 
$
4,234

 
$
9,954

 
$
4

 
$
14,192

 
 
 
 
 
 
 
 
 
At December 31, 2012
 
 

 
 

 
 

 
 

Fixed maturities, available for sale:
 
 

 
 

 
 

 
 

States, municipalities and political subdivisions
 
$

 
$
3,288

 
$
1

 
$
3,289

Convertibles and bonds with warrants attached
 

 
31

 

 
31

United States government
 
8

 

 

 
8

Government-sponsored enterprises
 

 
164

 

 
164

Foreign government
 

 
3

 

 
3

Commercial mortgage-backed
 

 
28

 

 
28

Corporate
 

 
5,567

 
3

 
5,570

Subtotal
 
8

 
9,081

 
4

 
9,093

Common equities, available for sale
 
3,238

 

 

 
3,238

Nonredeemable preferred equities, available for sale
 

 
134

 
1

 
135

Separate accounts taxable fixed maturities
 

 
689

 

 
689

Top Hat Savings Plan (included in Other assets)
 
9

 

 

 
9

Total
 
$
3,255

 
$
9,904

 
$
5

 
$
13,164

 
 
 
 
 
 
 
 
 
Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
The following tables provide the change in Level 3 assets during 2013 and 2012:
(In millions)
Asset fair value measurements using significant unobservable inputs (Level 3)
 
 
Corporate fixed
maturities
 
States, 
municipalities 
and political 
subdivisions 
fixed maturities
 
Nonredeemable preferred 
equities
 
Total
Beginning balance, January 1, 2013
 
$
3

 
$
1

 
$
1

 
$
5

Total gains or losses (realized/unrealized):
 
 

 
 

 
 

 
 

Included in earnings (or changes in net assets)
 

 

 

 

Included in other comprehensive income
 

 

 

 

Purchases
 

 

 
1

 
1

Sales
 

 
(1
)
 

 
(1
)
Transfers into Level 3
 

 

 

 

Transfers out of Level 3
 
(1
)
 

 

 
(1
)
Ending balance, December 31, 2013
 
$
2

 
$

 
$
2

 
$
4

 
 
 
 
 
 
 
 
 
Beginning balance, January 1, 2012
 
$
18

 
$
3

 
$
4

 
$
25

Total gains or losses (realized/unrealized):
 
 

 
 

 
 

 
 

Included in earnings (or changes in net assets)
 

 

 

 

Included in other comprehensive income
 
2

 

 
2

 
4

Purchases
 

 

 
1

 
1

Sales
 
(4
)
 
(2
)
 

 
(6
)
Transfers into Level 3
 
1

 

 

 
1

Transfers out of Level 3
 
(14
)
 

 
(6
)
 
(20
)
Ending balance, December 31, 2012
 
$
3

 
$
1

 
$
1

 
$
5

 
 
 
 
 
 
 
 
 
Fair Value of Life Policy Loans
The following table shows the fair value of our life policy loans, included in other invested assets, subject to fair value disclosure requirements:
(In millions)
 
Quoted prices in
active markets for
identical assets
(Level 1)
 
Significant other
observable inputs 
(Level 2)
 
Significant 
unobservable 
inputs
(Level 3)
 
Total
At December 31, 2013
 
 
 
 
Life policy loans
 
$

 
$

 
$
45

 
$
45

 
 
 
 
 
 
 
 
 
At December 31, 2012
 
 
 
 
 
 
 
 
Life policy loans
 
$

 
$

 
$
50

 
$
50

 
 
 
 
 
 
 
 
 
Debt [Member]
 
Fair Values of Deferred Annuities, Structured Settlements and Other Items
The following table shows fair values of our note payable and long-term debt subject to fair value disclosure requirements:
(In millions)
 
Quoted prices
in active
markets for 
identical assets
(Level 1)
 
Significant
other 
observable
inputs 
(Level 2)
 
 
 
 
At December 31, 2013
 
 
 
Significant
unobservable
inputs
(Level 3)
 
Total
Note payable
 
$

 
$
104

 
$

 
$
104

6.900% senior debentures, due 2028
 

 
30

 

 
30

6.920% senior debentures, due 2028
 

 
458

 

 
458

6.125% senior notes, due 2034
 

 
399

 

 
399

Total
 
$

 
$
991

 
$

 
$
991

 
 
 
 
 
 
 
 
 
At December 31, 2012
 
 
 
 
 
 
 
 
Note payable
 
$

 
$
104

 
$

 
$
104

6.900% senior debentures, due 2028
 

 
31

 

 
31

6.920% senior debentures, due 2028
 

 
479

 

 
479

6.125% senior notes, due 2034
 

 
431

 

 
431

Total
 
$

 
$
1,045

 
$

 
$
1,045

 
 
 
 
 
 
 
 
 
Deferred Annuities, Structured Settlements, And Other [Member]
 
Fair Values of Deferred Annuities, Structured Settlements and Other Items
The following table shows fair value of our deferred annuities and structured settlements, included in life policy and investment contract reserves, subject to fair value disclosure requirements:
(In millions)
 
Quoted prices in
active markets for
identical assets
(Level 1)
 
Significant other
observable inputs 
(Level 2)
 
Significant
unobservable
inputs
(Level 3)
 
Total
At December 31, 2013
 
 
 
 
Deferred annuities
 
$

 
$

 
$
911

 
$
911

Structured settlements
 

 
219

 

 
219

Total
 
$

 
$
219

 
$
911

 
$
1,130

 
 
 
 
 
 
 
 
 
At December 31, 2012
 
 
 
 
 
 
 
 
Deferred annuities
 
$

 
$

 
$
898

 
$
898

Structured settlements
 

 
240

 

 
240

Total
 
$

 
$
240

 
$
898

 
$
1,138