Investments (Tables)

9 Months Ended

Sep. 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:

	Cost or
(In millions)	amortized		Gross unrealized				Fair
At September 30, 2012	cost		gains		losses		value
Fixed maturities:
States, municipalities and political subdivisions	$	3,023	$	265	$	-	$	3,288
Convertibles and bonds with warrants attached		31		-		-		31
United States government		7		1		-		8
Government-sponsored enterprises		116		-		-		116
Foreign government		3		-		-		3
Corporate securities		5,053		621		4		5,670
Subtotal		8,233		887		4		9,116
Equity securities:
Common equities		2,212		1,000		2		3,210
Preferred equities		103		36		-		139
Subtotal		2,315		1,036		2		3,349
Total	$	10,548	$	1,923	$	6	$	12,465
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:

	Less than 12 months				12 months or more				Total
(In millions)	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
At September 30, 2012	value		losses		value		losses		value		losses
Fixed maturities:
States, municipalities and political subdivisions	$	18	$	-	$	-	$	-	$	18	$	-
Government-sponsored enterprises		10		-		-		-		10		-
Corporate securities		74		2		31		2		105		4
Subtotal		102		2		31		2		133		4
Equity securities:
Common equities		41		2		-		-		41		2
Preferred equities		6		-		-		-		6		-
Subtotal		47		2		-		-		47		2
Total	$	149	$	4	$	31	$	2	$	180	$	6
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:

	Three months ended September 30,						Nine months ended September 30,
(In millions)	2012			2011			2012			2011
Realized investment gains and losses summary:
Fixed maturities:
Gross realized gains	$	14		$	2		$	30		$	9
Gross realized losses		-			-			-			-
Other-than-temporary impairments		-			(3	)		-			(3	)
Equity securities:
Gross realized gains		1			18			30			132
Gross realized losses		-			(17	)		(1	)		(35	)
Other-than-temporary impairments		(2	)		-			(32	)		(30	)
Securities with embedded derivatives		(4	)		(4	)		1			-
Other		1			2			1			4
Total	$	10		$	(2	)	$	29		$	77
Change in unrealized gains and losses summary:
Fixed maturities	$	110		$	76		$	188		$	180
Equity securities		143			(379	)		240			(278	)
Adjustment to deferred acquisition costs and life policy reserves		(6	)		(7	)		(21	)		(11	)
Amortization of pension actuarial loss and prior service cost		2			1			5			3
Other		-			1			5			4
Income taxes on above		(88	)		108			(147	)		36
Total	$	161		$	(200	)	$	270		$	(66	)