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 September 30, 2014	cost		gains		losses		value
Fixed maturity securities:
Corporate	$	5,134	$	449	$	13	$	5,570
States, municipalities and political subdivisions	3,294		173		3		3,464
Commercial mortgage-backed	250		5		1		254
Government-sponsored enterprises	222		—		12		210
Foreign government	10		—		—		10
Convertibles and bonds with warrants attached	7		—		—		7
United States government	7		—		—		7
Subtotal	8,924		627		29		9,522
Equity securities:
Common equities	2,552		1,942		6		4,488
Nonredeemable preferred equities	145		34		1		178
Subtotal	2,697		1,976		7		4,666
Total	$	11,621	$	2,603	$	36	$	14,188
At December 31, 2013
Fixed maturity securities:
Corporate	$	5,122	$	433	$	22	$	5,533
States, municipalities and political subdivisions	3,107		125		21		3,211
Government-sponsored enterprises	227		—		27		200
Commercial mortgage-backed	148		—		5		143
Convertibles and bonds with warrants attached	17		—		—		17
Foreign government	10		—		—		10
United States government	7		—		—		7
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 seven 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), Johnson & Johnson (NYSE:JNJ), BlackRock Inc. (NYSE:BLK), and RPM International (NYSE:RPM), which had a combined gross unrealized gain of $579 million. At September 30, 2014, BlackRock Inc. was our largest single common stock holding with a fair value of 3.1 percent of our publicly traded common stock portfolio and 1.0 percent of the total investment portfolio.

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



(In millions)	Less than 12 months				12 months or more				Total		Total
	Fair		Unrealized		Fair		Unrealized		fair		unrealized
At September 30, 2014	value		losses		value		losses		value		losses
Fixed maturity securities:
Corporate	$	224	$	9	$	114	$	4	$	338	$	13
States, municipalities and political subdivisions	28		—		218		3		246		3
Commercial mortgage-backed	37		—		32		1		69		1
Government-sponsored enterprises	11		—		176		12		187		12
Foreign government	—		—		10		—		10		—
United States government	1		—		1		—		2		—
Subtotal	301		9		551		20		852		29
Equity securities:
Common equities	105		2		80		4		185		6
Nonredeemable preferred equities	25		—		17		1		42		1
Subtotal	130		2		97		5		227		7
Total	$	431	$	11	$	648	$	25	$	1,079	$	36
At December 31, 2013
Fixed maturity securities:
Corporate	$	572	$	20	$	43	$	2	$	615	$	22
States, municipalities and political subdivisions	490		18		42		3		532		21
Government-sponsored enterprises	199		27		1		—		200		27
Commercial mortgage-backed	125		5		—		—		125		5
Foreign government	10		—		—		—		10		—
United States government	1		—		—		—		1		—
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 September 30,						Nine months ended September 30,
	2014			2013			2014			2013
Investment income summary:
Interest on fixed maturities	$	105		$	104		$	312		$	309
Dividends on equity securities	35			30			101			87
Other investment income	—			1			2			2
Total	140			135			415			398
Less investment expenses	2			2			6			6
Total	$	138		$	133		$	409		$	392

Realized investment gains and losses summary:
Fixed maturities:
Gross realized gains	$	6		$	5		$	12		$	10
Gross realized losses	—			—			(4		)	—
Other-than-temporary impairments	—			—			—			(2		)
Equity securities:
Gross realized gains	59			15			93			64
Gross realized losses	—			—			—			—
Other-than-temporary impairments	—			—			(1		)	—
Other	—			2			1			5
Total	$	65		$	22		$	101		$	77

Change in unrealized gains and losses summary:
Fixed maturities	$	(66	)	$	(28	)	$	115		$	(335	)
Equity securities	(54		)	90			117			509
Net change in pension actuarial loss and prior service cost	1			2			—			7
Adjustment to deferred acquisition costs and life policy reserves	4			9			(4		)	38
Other	1			(2		)	9			(7		)
Income taxes on above	40			(25		)	(83		)	(74		)
Total	$	(74	)	$	46		$	154		$	138

During the three months ended September 30, 2014, there were no equity securities and no fixed-maturity securities other-than-temporarily impaired. During the nine months ended September 30, 2014, there were three equity securities and one fixed-maturity security other-than-temporarily impaired. 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 for the three and nine months ended September 30, 2014 and 2013. At September 30, 2014, 212 fixed-maturity investments with a total unrealized loss of $20 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. Four equity investments with a total unrealized loss of $5 million had been in an unrealized loss position for 12 months or more as of September 30, 2014. Of that total, no equity investments were trading below 70 percent of cost.

During 2013, we other-than-temporarily impaired seven fixed-maturity securities. At December 31, 2013, 40 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.