Investments (Tables)

3 Months Ended

Mar. 31, 2012

Analysis of Cost or Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses and Fair Value for Invested Assets

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 March 31, 2012	cost		gains		losses		value
Fixed maturities:
States, municipalities and political subdivisions	$	3,022	$	238	$	1	$	3,259
Convertibles and bonds with warrants attached		56		-		-		56
United States government		7		1		-		8
Government-sponsored enterprises		103		-		-		103
Foreign government		3		-		-		3
Corporate securities		5,021		511		5		5,527
Subtotal		8,212		750		6		8,956
Equity securities:
Common equities		2,071		945		2		3,014
Preferred equities		87		30		-		117
Subtotal		2,158		975		2		3,131
Total	$	10,370	$	1,725	$	8	$	12,087
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

Fair Values and Unrealized Losses by Investment Category and by Duration of 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 March 31, 2012	value			losses	value			losses	value			losses
Fixed maturities:
States, municipalities and political subdivisions	$	53	$	1	$	4	$	-	$	57	$	1
United States government		2		-		-		-		2		-
Government-sponsored enterprises		31		-		-		-		31		-
Corporate securities		153		2		45		3		198		5
Subtotal		239		3		49		3		288		6
Equity securities:
Common equities		110		2		-		-		110		2
Preferred equities		5		-		4		-		9		-
Subtotal		115		2		4		-		119		2
Total	$	354	$	5	$	53	$	3	$	407	$	8
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

Realized Investment Gains and Losses and Change in Unrealized Investment Gains and Losses and Other Items

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

(In millions)	Three months ended March 31,
	2012			2011
Realized investment gains and losses summary:
Fixed maturities:
Gross realized gains	$	3		$	3
Gross realized losses		-			-
Other-than-temporary impairments		-			-
Equity securities:
Gross realized gains		23			35
Gross realized losses		-			-
Other-than-temporary impairments		(16	)		(30	)
Securities with embedded derivatives		4			4
Other		(1	)		-
Total	$	13		$	12
Change in unrealized gains and losses summary:
Fixed maturities	$	49		$	8
Equity securities		179			122
Adjustment to deferred acquisition costs and life policy reserves		(7	)		-
Pension obligations		2			1
Other		2			1
Income taxes on above		(79	)		(46	)
Total	$	146		$	86