Investments (Tables)

12 Months Ended

Dec. 31, 2011

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

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

	Cost or
	amortized		Gross unrealized				Fair
(In millions)	cost		gains		losses		value
At December 31, 2011
Fixed maturities:
States, municipalities and political subdivisions	$	3,006	$	246	$	-	$	3,252
Convertibles and bonds with warrants attached		59		-		-		59
United States government		6		1		-		7
Government-sponsored enterprises		159		1		-		160
Foreign government		3		-		-		3
Corporate securities		4,851		465		18		5,298
Subtotal		8,084		713		18		8,779
Equity securities:
Common equities		2,088		801		35		2,854
Preferred equities		74		28		-		102
Subtotal		2,162		829		35		2,956
Total	$	10,246	$	1,542	$	53	$	11,735
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
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:

	Less than 12 months				12 months or more				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(In millions)	value		losses		value		losses		value		losses
At December 31, 2011
Fixed maturities:
States, municipalities and political subdivisions	$	-	$	-	$	12	$	-	$	12	$	-
United States government		1		-		-		-		1		-
Government-sponsored enterprises		10		-		-		-		10		-
Corporate securities		380		13		57		5		437		18
Subtotal		391		13		69		5		460		18
Equity securities:
Common equities		333		35		-		-		333		35
Preferred equities		5		-		19		-		24		-
Subtotal		338		35		19		-		357		35
Total	$	729	$	48	$	88	$	5	$	817	$	53
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

Contractual Maturity Dates for Fixed-Maturity and Short-Term Investments

At December 31, 2011, contractual maturity dates for fixed-maturity investments were:

	Amortized		Fair		% of fair
(Dollars in millions)	cost		value		value
Maturity dates occurring:
Less than 1 year	$	394	$	401		4.6	%
Years 1 - 5		2,771		2,923		33.3
Years 6 - 10		3,614		4,028		45.8
Years 11 - 20		1,081		1,175		13.4
Over 20 years		224		252		2.9
Total	$	8,084	$	8,779		100.0	%

Investment Income, Realized Investment Gains and Losses and Change in Unrealized Investment Gains and Losses

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

	Years ended December 31,
(In millions)	2011			2010			2009
Investment income summarized by investment category:
Interest on fixed maturities	$	424		$	423		$	402
Dividends on equity securities		104			99			100
Other investment income		4			4			7
Total		532			526			509
Less investment expenses		7			8			8
Total	$	525		$	518		$	501
Realized investment gains and losses summary:
Fixed maturities:
Gross realized gains	$	11		$	25		$	15
Gross realized losses		0			(12	)		(30	)
Other-than-temporary impairments		(5	)		(3	)		(62	)
Equity securities:
Gross realized gains		151			174			624
Gross realized losses		(40	)		0			(162	)
Other-than-temporary impairments		(52	)		(33	)		(69	)
Securities with embedded derivatives		(1	)		10			27
Other		6			(2	)		(7	)
Total	$	70		$	159		$	336
Change in unrealized investment gains and losses and other summary:
Fixed maturities	$	200		$	154		$	734
Equity securities		39			70			(134	)
Adjustment to deferred acquisition costs and life policy reserves		(14	)		(9	)		(24	)
Pension obligations		(25	)		3			(14	)
Other		3			5			28
Income taxes on above		(71	)		(78	)		(207	)
Total	$	132		$	145		$	383