INVESTMENTS

The following table provides cost or amortized cost, gross unrealized gains, gross unrealized losses and fair value for our invested assets:



(In millions)	Cost or
	amortized		Gross unrealized				Fair
At March 31, 2014	cost		gains		losses		value
Fixed maturity securities:
States, municipalities and political subdivisions	$	3,113	$	143	$	12	$	3,244
Convertibles and bonds with warrants attached	17		—		—		17
United States government	7		—		—		7
Government-sponsored enterprises	211		—		20		191
Foreign government	10		—		—		10
Commercial mortgage-backed	206		2		2		206
Corporate	5,045		468		8		5,505
Subtotal	8,609		613		42		9,180
Equity securities:
Common equities	2,418		1,845		6		4,257
Nonredeemable preferred equities	127		43		1		169
Subtotal	2,545		1,888		7		4,426
Total	$	11,154	$	2,501	$	49	$	13,606
At December 31, 2013
Fixed maturity securities:
States, municipalities and political subdivisions	$	3,107	$	125	$	21	$	3,211
Convertibles and bonds with warrants attached	17		—		—		17
United States government	7		—		—		7
Government-sponsored enterprises	227		—		27		200
Foreign government	10		—		—		10
Commercial mortgage-backed	148		—		5		143
Corporate	5,122		433		22		5,533
Subtotal	8,638		558		75		9,121
Equity securities:
Common equities	2,396		1,818		1		4,213
Nonredeemable preferred equities	127		38		3		162
Subtotal	2,523		1,856		4		4,375
Total	$	11,161	$	2,414	$	79	$	13,496

The net unrealized investment gains in our fixed-maturity portfolio are primarily the result of the continued low interest rate environment that increased the fair value of our fixed-maturity portfolio. The five largest unrealized investment gains in our common stock portfolio are from Exxon Mobil Corporation (NYSE:XOM), The Procter & Gamble Company (NYSE:PG), Honeywell International Incorporated (NYSE:HON), Chevron Corporation (NYSE:CVX), and Dover Corporation (NYSE:DOV), which had a combined gross unrealized gain of $431 million. At March 31, 2014, we had $17 million fair value of hybrid securities included in fixed maturities that follow Accounting Standards Codification (ASC) 815-15-25, Accounting for Certain Hybrid Financial Instruments, compared with $18 million fair value of hybrid securities at December 31, 2013. The hybrid securities are carried at fair value, and the changes in fair value are included in realized investment gains and losses.

The table below provides fair values and gross unrealized losses by investment category and by the duration of the securities’ continuous unrealized loss position:



(In millions)	Less than 12 months				12 months or more				Total		Total
	Fair		Unrealized		Fair		Unrealized		fair		unrealized
At March 31, 2014	value		losses		value		losses		value		losses
Fixed maturity securities:
States, municipalities and political subdivisions	$	289	$	7	$	98	$	5	$	387	$	12
United States government	11		—		—		—		11		—
Government-sponsored enterprises	83		8		96		12		179		20
Commercial mortgage-backed	55		1		15		1		70		2
Corporate	291		7		65		1		356		8
Subtotal	729		23		274		19		1,003		42
Equity securities:
Common equities	72		6		—		—		72		6
Nonredeemable preferred equities	39		1		—		—		39		1
Subtotal	111		7		—		—		111		7
Total	$	840	$	30	$	274	$	19	$	1,114	$	49
At December 31, 2013
Fixed maturity securities:
States, municipalities and political subdivisions	$	490	$	18	$	42	$	3	$	532	$	21
United States government	1		—		—		—		1		—
Government-sponsored enterprises	199		27		1		—		200		27
Foreign government	10		—		—		—		10		—
Commercial mortgage-backed	125		5		—		—		125		5
Corporate	572		20		43		2		615		22
Subtotal	1,397		70		86		5		1,483		75
Equity securities:
Common equities	77		1		—		—		77		1
Nonredeemable preferred equities	42		3		—		—		42		3
Subtotal	119		4		—		—		119		4
Total	$	1,516	$	74	$	86	$	5	$	1,602	$	79

The following table provides investment income, realized investment gains and losses, the change in unrealized investment gains and losses, and other items:



(In millions)	Three months ended March 31,
	2014			2013
Investment income summary:
Interest on fixed maturities	$	104		$	102
Dividends on equity securities	32			27
Other investment income	1			1
Total	137			130
Less investment expenses	2			2
Total	$	135		$	128

Realized investment gains and losses summary:
Fixed maturities:
Gross realized gains	$	2		$	2
Gross realized losses	—			—
Other-than-temporary impairments	—			(2		)
Equity securities:
Gross realized gains	18			37
Gross realized losses	—			—
Other-than-temporary impairments	(1		)	—
Securities with embedded derivatives	(1		)	1
Other	4			3
Total	$	22		$	41

Change in unrealized gains and losses summary:
Fixed maturities	$	88		$	(25	)
Equity securities	29			381
Net change in pension actuarial loss and prior service cost	(1		)	2
Adjustment to deferred acquisition costs and life policy reserves	(3		)	3
Other	2			(3		)
Income taxes on above	(41		)	(125		)
Total	$	74		$	233

During the three months ended March 31, 2014 and 2013, there were no credit losses on fixed-maturity securities for which a portion of other-than-temporary impairment (OTTI) has been recognized in other comprehensive income.

During the quarter ended March 31, 2014, there were two equity securities and one fixed-maturity security other-than-temporarily impaired. At March 31, 2014, ninety-nine fixed-maturity investments with a total unrealized loss of $19 million had been in an unrealized loss position for 12 months or more. Of that total, no fixed-maturity investments had fair values below 70 percent of amortized cost. One equity investment with a total unrealized loss of less than $500,000 had been in an unrealized loss position for 12 months or more as of March 31, 2014. This equity investment was not trading below 70 percent of cost.

During 2013, we other-than-temporarily impaired seven fixed-maturity securities. At December 31, 2013, forty fixed-maturity investments with a total unrealized loss of $5 million had been in an unrealized loss position for 12 months or more. Of that total, no fixed-maturity investments had fair values below 70 percent of amortized cost. There were no equity investments in an unrealized loss position for 12 months or more as of December 31, 2013.