Investments (Tables)

6 Months Ended

Jun. 30, 2011

Change in Unrealized Gains and Losses, Net of Taxes, Included in Other Comprehensive Income and Shareholders' Equity

The change in unrealized gains and losses, net of taxes, described in the following table, is included in other comprehensive income and shareholders’ equity.

(In millions)	Three months ended June 30,						Six months ended June 30,
	2011			2010			2011			2010
Change in unrealized investment gains and losses and other summary:
Fixed maturities	$	96		$	123		$	104		$	209
Equity securities		(21	)		(254	)		101			(190	)
Adjustment to deferred acquisition costs and life policy reserves		(4	)		(4	)		(4	)		(7	)
Pension obligations		1			-			2			1
Other		2			3			3			5
Income taxes on above		(26	)		46			(72	)		(6	)
Total	$	48		$	(86	)	$	134		$	12

Analysis of Cost or Amortized Cost, Gross Unrealized Gains and Losses And Fair Value for Investments

The following table analyzes cost or amortized cost, gross unrealized gains, gross unrealized losses and fair value for our investments, along with the amount of cumulative non-credit other-than-temporary impairment (OTTI) losses transferred to accumulated other comprehensive income (AOCI) in accordance with ASC 320-10-65, Recognition and Presentation of Other-Than-Temporary Impairments, for securities that also had a credit impairment:

(In millions)	Cost or
	amortized		Gross unrealized				Fair		OTTI in
At June 30, 2011	cost		gains		losses		value		AOCI
Fixed maturities:
States, municipalities and political subdivisions	$	3,077	$	157	$	3	$	3,231	$	-
Convertibles and bonds with warrants attached		73		-		-		73		-
United States government		5		1		-		6		-
Government-sponsored enterprises		163		-		1		162		-
Foreign government		3		-		-		3		-
Corporate securities		4,797		449		4		5,242		-
Subtotal		8,118		607		8		8,717	$	-
Equity securities:
Common equities		2,040		845		21		2,864
Preferred equities		75		33		1		107
Subtotal		2,115		878		22		2,971	NA
Total	$	10,233	$	1,485	$	30	$	11,688
At December 31, 2010
Fixed maturities:
States, municipalities and political subdivisions	$	3,043	$	110	$	10	$	3,143	$	-
Convertibles and bonds with warrants attached		69		-		-		69		-
United States government		4		1		-		5		-
Government-sponsored enterprises		201		-		1		200		-
Foreign government		3		-		-		3		-
Corporate securities		4,568		404		9		4,963		-
Subtotal		7,888		515		20		8,383	$	-
Equity securities:
Common equities		2,211		757		28		2,940
Preferred equities		75		27		1		101
Subtotal		2,286		784		29		3,041	NA
Total	$	10,174	$	1,299	$	49	$	11,424

Fair Values and Unrealized Losses by Investment Category and by the Duration of the Securities' Continuous Unrealized Loss Position

The table below provides fair values and 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
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
At June 30, 2011	value		losses		value		losses		value		losses
Fixed maturities:
States, municipalities and political subdivisions	$	123	$	2	$	9	$	1	$	132	$	3
Government-sponsored enterprises		77		1		-		-		77		1
Corporate securities		256		2		28		2		284		4
Subtotal		456		5		37		3		493		8
Equity securities:
Common equities		197		21		-		-		197		21
Preferred equities		5		-		18		1		23		1
Subtotal		202		21		18		1		220		22
Total	$	658	$	26	$	55	$	4	$	713	$	30
At December 31, 2010
Fixed maturities:
States, municipalities and political subdivisions	$	325	$	9	$	9	$	1	$	334	$	10
Government-sponsored enterprises		133		1		-		-		133		1
Corporate securities		354		6		39		3		393		9
Subtotal		812		16		48		4		860		20
Equity securities:
Common equities		337		28		-		-		337		28
Preferred equities		5		-		23		1		28		1
Subtotal		342		28		23		1		365		29
Total	$	1,154	$	44	$	71	$	5	$	1,225	$	49

Amount of OTTI Charges

The following table provides the amount of OTTI charges for the three and six months ended June 30, 2011:

(In millions)	Three months ended June 30,				Six months ended June 30,
	2011		2010		2011		2010
Fixed maturities	$	-	$	1	$	-	$	2
Equity securities		-		33		30		33
Total	$	-	$	34	$	30	$	35