Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2011

Fair Value Hierarchy for Assets Measured at Fair Value on a Recurring Basis

The following tables illustrate the fair value hierarchy for those assets measured at fair value on a recurring basis for the years ended December 31, 2011 and 2010. We do not have any material liabilities carried at fair value. There were also no significant transfers between Level 1 and Level 2.

	Asset fair value measurements at December 31, 2011, using:
(In millions)	Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Fixed maturities, available for sale:
States, municipalities and political subdivisions	$	-	$	3,249	$	3	$	3,252
Convertibles and bonds with warrants attached		-		59		-		59
United States government		7		-		-		7
Government-sponsored enterprises		-		160		-		160
Foreign government		-		3		-		3
Corporate securities		-		5,280		18		5,298
Subtotal		7		8,751		21		8,779
Common equities, available for sale		2,854		-		-		2,854
Preferred equities, available for sale		-		98		4		102
Taxable fixed-maturities separate accounts		-		628		-		628
Top Hat Savings Plan		8		-		-		8
Total	$	2,869	$	9,477	$	25	$	12,371

	Asset fair value measurements at December 31, 2010, using:
(In millions)	Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Fixed maturities, available for sale:
States, municipalities and political subdivisions	$	-	$	3,139	$	4	$	3,143
Convertibles and bonds with warrants attached		-		69		-		69
United States government		5		-		-		5
Government-sponsored enterprises		-		200		-		200
Foreign government		-		3		-		3
Corporate securities		-		4,943		20		4,963
Subtotal		5		8,354		24		8,383
Common equities, available for sale		2,940		-		-		2,940
Preferred equities, available for sale		-		96		5		101
Taxable fixed-maturities separate accounts		-		606		2		608
Top Hat Savings Plan		9		-		-		9
Total	$	2,954	$	9,056	$	31	$	12,041

Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3)

The following tables provide changes to Level 3 securities during 2011 and 2010:

	Asset fair value measurements using significant unobservable inputs (Level 3)
(In millions)	Corporate fixed maturities			Taxable fixed maturities-  separate accounts			States, municipalities and political subdivisions fixed maturities			Preferred equities			Total
Beginning balance, January 1, 2011	$	20		$	2		$	4		$	5		$	31
Total gains or losses (realized/unrealized):
Included in earnings (or changes in net assets)		-			-			-			-			-
Included in other comprehensive income		-			-			-			-			-
Purchases		16			-			-			-			16
Sales		-			-			(1	)		-			(1	)
Transfers into Level 3		10			-			-			1			11
Transfers out of Level 3		(28	)		(2	)		-			(2	)		(32	)
Ending balance, December 31, 2011	$	18		$	-		$	3		$	4		$	25

	Asset fair value measurements using significant unobservable inputs (Level 3)
(In millions)	Corporate fixed maturities			Taxable fixed maturities-  separate accounts		States, municipalities and political subdivisions fixed maturities		Preferred equities		Total
Beginning balance, January 1, 2010	$	27		$	-	$	4	$	5	$	36
Total gains or losses (realized/unrealized):
Included in earnings (or changes in net assets)		-			-		-		-		-
Included in other comprehensive income		2			-		-		-		2
Purchases, sales, issuances, and settlements		(3	)		2		-		-		(1	)
Transfers into Level 3		4			-		-		-		4
Transfers out of Level 3		(10	)		-		-		-		(10	)
Ending balance, December 31, 2010	$	20		$	2	$	4	$	5	$	31