Investments (Tables)

9 Months Ended

Sep. 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 September 30,						Nine months ended September 30,
	2011			2010			2011			2010
Change in unrealized gains and losses summary:
Fixed maturities	$	76		$	198		$	180		$	407
Equity securities		(379	)		85			(278	)		(105	)
Adjustment to deferred acquisition costs and life policy reserves		(7	)		(11	)		(11	)		(18	)
Pension obligations		1			-			3			1
Other		1			2			4			7
Income taxes on above		108			(96	)		36			(102	)
Total	$	(200	)	$	178		$	(66	)	$	190

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 September 30, 2011	cost		gains		losses		Value		AOCI
Fixed maturities:
States, municipalities and political subdivisions	$	3,020	$	220	$	1	$	3,239	$	-
Convertibles and bonds with warrants attached		69		-		-		69		-
United States government		6		1		-		7		-
Government-sponsored enterprises		217		-		-		217		-
Foreign government		3		-		-		3		-
Corporate securities		4,864		472		17		5,319		-
Subtotal		8,179		693		18		8,854	$	-
Equity securities:
Common equities		2,057		548		96		2,509
Preferred equities		75		26		1		100
Subtotal		2,132		574		97		2,609	NA
Total	$	10,311	$	1,267	$	115	$	11,463
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 September 30, 2011	value		losses		value		losses		value		losses
Fixed maturities:
States, municipalities and political subdivisions	$	17	$	1	$	6	$	-	$	23	$	1
United States government		1		-		-		-		1		-
Government-sponsored enterprises		70		-		-		-		70		-
Corporate securities		448		14		28		3		476		17
Subtotal		536		15		34		3		570		18
Equity securities:
Common equities		571		96		-		-		571		96
Preferred equities		8		-		18		1		26		1
Subtotal		579		96		18		1		597		97
Total	$	1,115	$	111	$	52	$	4	$	1,167	$	115
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 nine months ended September 30, 2011:

(In millions)	Three months ended September 30,				Nine months ended September 30,
	2011		2010		2011		2010
Fixed maturities	$	3	$	1	$	3	$	3
Equity securities		-		-		30		33
Total	$	3	$	1	$	33	$	36