Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2012

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

(In millions)	Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
At December 31, 2012
Fixed maturities, available for sale:
States, municipalities and political subdivisions	$	-	$	3,288	$	1	$	3,289
Convertibles and bonds with warrants attached		-		31		-		31
United States government		8		-		-		8
Government-sponsored enterprises		-		164		-		164
Foreign government		-		3		-		3
Commercial mortgage-backed securities		-		28		-		28
Corporate securities		-		5,567		3		5,570
Subtotal		8		9,081		4		9,093
Common equities, available for sale		3,238		-		-		3,238
Preferred equities, available for sale		-		134		1		135
Taxable fixed-maturities separate accounts		-		689		-		689
Top Hat Savings Plan		9		-		-		9
Total	$	3,255	$	9,904	$	5	$	13,164

At December 31, 2011
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 Using Significant Unobservable Inputs (Level 3)


(In millions)	Asset fair value measurements using significant unobservable inputs (Level 3)
	Corporate fixed maturities			Taxable fixed maturities- separate accounts			States, municipalities and political subdivisions fixed maturities			Preferred equities			Total
Beginning balance, January 1, 2012	$	18		$	-		$	3		$	4		$	25
Total gains or losses (realized/unrealized):
Included in earnings (or changes in net assets)		-			-			-			-			-
Included in other comprehensive income		2			-			-			2			4
Purchases		-			-			-			1			1
Sales		(4	)		-			(2	)		-			(6	)
Transfers into Level 3		1			-			-			-			1
Transfers out of Level 3		(14	)		-			-			(6	)		(20	)
Ending balance, December 31, 2012	$	3		$	-		$	1		$	1		$	5

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

Fair Value of Life Policy Loans


(In millions)	Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
At December 31, 2012
Life policy loans	$	-	$	-	$	50	$	50

At December 31, 2011
Life policy loans	$	-	$	-	$	43	$	43

Debt [Member]

Fair Values of Deferred Annuities, Structured Settlements and Other Items


(In millions)	Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
At December 31, 2012
Note payable	$	-	$	104	$	-	$	104
6.900% senior debentures, due 2028		-		31		-		31
6.920% senior debentures, due 2028		-		479		-		479
6.125% senior notes, due 2034		-		431		-		431
Total	$	-	$	1,045	$	-	$	1,045

At December 31, 2011
Note payable	$	-	$	104	$	-	$	104
6.900% senior debentures, due 2028		-		31		-		31
6.920% senior debentures, due 2028		-		410		-		410
6.125% senior notes, due 2034		-		373		-		373
Total	$	-	$	918	$	-	$	918

Deferred Annuities, Structured Settlements, And Other [Member]

Fair Values of Deferred Annuities, Structured Settlements and Other Items

(In millions)	Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
At December 31, 2012
Deferred annuities	$	-	$	-	$	898	$	898
Structured settlements		-		240		-		240
Total	$	-	$	240	$	898	$	1,138

At December 31, 2011
Deferred annuities	$	-	$	-	$	794	$	794
Structured settlements		-		208		-		208
Total	$	-	$	208	$	794	$	1,002

- Definition

Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring and/or nonrecurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

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- Definition

Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

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- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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- Definition

Tabular disclosure of liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring and/or nonrecurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset.

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