Investments (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2012	cost		gains		losses		value
Fixed maturities:
States, municipalities and political subdivisions	$	3,033	$	250	$	-	$	3,283
Convertibles and bonds with warrants attached		51		-		-		51
United States government		7		1		-		8
Government-sponsored enterprises		86		-		-		86
Foreign government		3		-		-		3
Corporate securities		5,072		529		7		5,594
Subtotal		8,252		780		7		9,025
Equity securities:
Common equities		2,149		860		2		3,007
Preferred equities		99		33		-		132
Subtotal		2,248		893		2		3,139
Total	$	10,500	$	1,673	$	9	$	12,164
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
At June 30, 2012	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Fixed maturities:
States, municipalities and political subdivisions	$	35	$	-	$	1	$	-	$	36	$	-
United States government		1		-		-		-		1		-
Government-sponsored enterprises		25		-		-		-		25		-
Corporate securities		193		3		59		4		252		7
Subtotal		254		3		60		4		314		7
Equity securities:
Common equities		67		2		3		-		70		2
Preferred equities		5		-		4		-		9		-
Subtotal		72		2		7		-		79		2
Total	$	326	$	5	$	67	$	4	$	393	$	9
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 June 30,						Six months ended June 30,
	2012			2011			2012			2011
Realized investment gains and losses summary:
Fixed maturities:
Gross realized gains	$	13		$	4		$	16		$	7
Gross realized losses		-			-			-			-
Other-than-temporary impairments		-			-			-			-
Equity securities:
Gross realized gains		6			79			29			114
Gross realized losses		(1	)		(18	)		(1	)		(18	)
Other-than-temporary impairments		(14	)		-			(30	)		(30	)
Securities with embedded derivatives		1			-			5			4
Other		1			2			-			2
Total	$	6		$	67		$	19		$	79
Change in unrealized gains and losses summary:
Fixed maturities	$	29		$	96		$	78		$	104
Equity securities		(82	)		(21	)		97			101
Adjustment to deferred acquisition costs and life policy reserves		(8	)		(4	)		(15	)		(4	)
Amortization of pension actuarial loss and prior service cost		1			1			3			2
Other		3			2			5			3
Income taxes on above		20			(26	)		(59	)		(72	)
Total	$	(37	)	$	48		$	109		$	134