Investments (Tables)

12 Months Ended

Dec. 31, 2011

Net Investment Income



Years ended December 31
(In millions)	2011			2010			2009
Fixed maturity securities	$	2,011		$	2,051		$	1,941
Short term investments	8			15			36
Limited partnership investments	48			249			315
Equity securities	20			32			49
Mortgage loans	9			2			—
Trading portfolio (a)	9			13			23
Other	7			8			6
Gross investment income	2,112			2,370			2,370
Investment expense	(58		)	(54		)	(50		)
Net investment income	$	2,054		$	2,316		$	2,320

___________________


(a)	There were no net unrealized gains (losses) related to changes in fair value of trading securities still held included in net investment income for the years ended December 31, 2011 and 2010. Net unrealized losses related to changes in fair value on trading securities still held included in net investment income were $5 million for the year ended December 31, 2009.

Net realized investment gains (losses)

Net Realized Investment Gains (Losses)



Years ended December 31
(In millions)	2011			2010			2009
Net realized investment gains (losses):
Fixed maturity securities:
Gross realized gains	$	289		$	475		$	500
Gross realized losses	(311		)	(383		)	(1,667		)
Net realized investment gains (losses) on fixed maturity securities	(22		)	92			(1,167		)
Equity securities:
Gross realized gains	10			50			473
Gross realized losses	(11		)	(52		)	(230		)
Net realized investment gains (losses) on equity securities	(1		)	(2		)	243
Derivatives	—			(1		)	51
Short term investments and other (a)	19			(3		)	16
Net realized investment gains (losses), net of participating policyholders’ interests	$	(4	)	$	86		$	(857	)

____________________


(a)	Includes net unrealized gains (losses) related to changes in the fair value of securities for which the fair value option has been elected. Net unrealized gains (losses) were $2 million and $(1) million for the years ended December 31, 2011 and 2010.

Net change in unrealized gains (losses) on investments

Net Change in Unrealized Gains (Losses)



Years ended December 31
(In millions)	2011			2010			2009
Net change in unrealized gains (losses) on investments:
Fixed maturity securities	$	1,442		$	1,140		$	5,278
Equity securities	(2		)	7			156
Other	(3		)	(1		)	(4		)
Total net change in unrealized gains (losses) on investments	$	1,437		$	1,146		$	5,430

Components of other-than-temporary impairment losses recognized in earnings

The components of other-than-temporary impairment (OTTI) losses recognized in earnings by asset type are summarized in the following table.



Years ended December 31
(In millions)	2011		2010		2009
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	95	$	68	$	357
States, municipalities and political subdivisions	—		62		79
Asset-backed:
Residential mortgage-backed	105		71		461
Commercial mortgage-backed	—		3		193
Other asset-backed	6		3		31
Total asset-backed	111		77		685
Redeemable preferred stock	—		—		9
Total fixed maturity securities available-for-sale	206		207		1,130
Equity securities available-for-sale:
Common stock	8		11		5
Preferred stock	1		14		217
Total equity securities available-for-sale	9		25		222
Short term investments	1		—		—
Net OTTI losses recognized in earnings	$	216	$	232	$	1,352

Summary of fixed maturity and equity securities

Summary of Fixed Maturity and Equity Securities



December 31, 2011	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Unrealized OTTI Losses (Gains)
(In millions)	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Unrealized OTTI Losses (Gains)
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	19,086	$	1,946	$	154	$	20,878	$	—
States, municipalities and political subdivisions	9,018		900		136		9,782		—
Asset-backed:
Residential mortgage-backed	5,786		172		183		5,775		99
Commercial mortgage-backed	1,365		48		59		1,354		(2		)
Other asset-backed	946		13		4		955		—
Total asset-backed	8,097		233		246		8,084		97
U.S. Treasury and obligations of government-sponsored enterprises	479		14		—		493		—
Foreign government	608		28		—		636		—
Redeemable preferred stock	51		7		—		58		—
Total fixed maturity securities available-for-sale	37,339		3,128		536		39,931		$	97
Total fixed maturity securities trading	6		—		—		6
Equity securities available-for-sale:
Common stock	30		17		—		47
Preferred stock	258		4		5		257
Total equity securities available-for-sale	288		21		5		304
Total	$	37,633	$	3,149	$	541	$	40,241



December 31, 2010	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Unrealized OTTI Losses (Gains)
(In millions)	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Unrealized OTTI Losses (Gains)
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	19,492	$	1,603	$	70	$	21,025	$	—
States, municipalities and political subdivisions	8,157		142		410		7,889		—
Asset-backed:
Residential mortgage-backed	6,254		101		265		6,090		114
Commercial mortgage-backed	994		40		41		993		(2		)
Other asset-backed	753		18		8		763		—
Total asset-backed	8,001		159		314		7,846		112
U.S. Treasury and obligations of government-sponsored enterprises	122		16		1		137		—
Foreign government	602		18		—		620		—
Redeemable preferred stock	47		7		—		54		—
Total fixed maturity securities available-for-sale	36,421		1,945		795		37,571		$	112
Total fixed maturity securities trading	6		—		—		6
Equity securities available-for-sale:
Common stock	90		25		—		115
Preferred stock	332		2		9		325
Total equity securities available-for-sale	422		27		9		440
Total	$	36,849	$	1,972	$	804	$	38,017

Securities in a gross unrealized loss position

Securities in a Gross Unrealized Loss Position



	Less than 12 Months				12 Months or Longer				Total
December 31, 2011	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
(In millions)	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	2,552	$	126	$	159	$	28	$	2,711	$	154
States, municipalities and political subdivisions	67		1		721		135		788		136
Asset-backed:
Residential mortgage-backed	719		36		874		147		1,593		183
Commercial mortgage-backed	431		39		169		20		600		59
Other asset-backed	389		4		—		—		389		4
Total asset-backed	1,539		79		1,043		167		2,582		246
Total fixed maturity securities available-for-sale	4,158		206		1,923		330		6,081		536
Equity securities available-for-sale:
Preferred stock	117		5		—		—		117		5
Total equity securities available-for-sale	117		5		—		—		117		5
Total	$	4,275	$	211	$	1,923	$	330	$	6,198	$	541



	Less than 12 Months				12 Months or Longer				Total
December 31, 2010	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
(In millions)	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	1,719	$	34	$	405	$	36	$	2,124	$	70
States, municipalities and political subdivisions	3,339		164		745		246		4,084		410
Asset-backed:
Residential mortgage-backed	1,800		52		1,801		213		3,601		265
Commercial mortgage-backed	164		3		333		38		497		41
Other asset-backed	122		1		60		7		182		8
Total asset-backed	2,086		56		2,194		258		4,280		314
U.S. Treasury and obligations of government-sponsored enterprises	8		1		—		—		8		1
Total fixed maturity securities available-for-sale	7,152		255		3,344		540		10,496		795
Equity securities available-for-sale:
Preferred stock	175		5		70		4		245		9
Total equity securities available-for-sale	175		5		70		4		245		9
Total	$	7,327	$	260	$	3,414	$	544	$	10,741	$	804

The following table summarizes the activity for the years ended December 31, 2011 and 2010 and for the period from April 1, 2009 to December 31, 2009 related to the pretax credit loss component reflected in Retained earnings on fixed maturity securities still held at December 31, 2011, 2010 and 2009 for which a portion of an OTTI loss was recognized in Other comprehensive income.



(In millions)	Year ended December 31, 2011			Year ended December 31, 2010			Period from April 1, 2009 to December 31, 2009
Beginning balance of credit losses on fixed maturity securities	$	141		$	164		$	192
Additional credit losses for securities for which an OTTI loss was previously recognized	39			37			93
Credit losses for securities for which an OTTI loss was not previously recognized	11			11			183
Reductions for securities sold during the period	(67		)	(62		)	(239		)
Reductions for securities the Company intends to sell or more likely than not will be required to sell	(32		)	(9		)	(65		)
Ending balance of credit losses on fixed maturity securities	$	92		$	141		$	164

Ratings distribution of corporate and other bonds in a gross unrealized loss position

Gross Unrealized Losses by Ratings Distribution



December 31, 2011	Amortized Cost		Estimated Fair Value		Gross Unrealized Losses
(In millions)	Amortized Cost		Estimated Fair Value		Gross Unrealized Losses
AAA	$	112	$	111	$	1
AA	97		94		3
A	895		853		42
BBB	1,275		1,196		79
Non-investment grade	486		457		29
Total	$	2,865	$	2,711	$	154

Ratings distribution of asset-backed securities in a gross unrealized loss position

Gross Unrealized Losses by Ratings Distribution



December 31, 2011	Amortized Cost		Estimated Fair Value		Gross Unrealized Losses
(In millions)	Amortized Cost		Estimated Fair Value		Gross Unrealized Losses
U.S. Government, Government Agencies, and Government-Sponsored Enterprises	$	382	$	347	$	35
AAA	364		355		9
AA	409		388		21
A	370		357		13
BBB	319		294		25
Non-investment grade	984		841		143
Total	$	2,828	$	2,582	$	246

Contractual maturity

Contractual Maturity



	December 31, 2011				December 31, 2010
(In millions)	Cost or Amortized Cost		Estimated Fair Value		Cost or Amortized Cost		Estimated Fair Value
Due in one year or less	$	1,802	$	1,812	$	1,515	$	1,506
Due after one year through five years	13,110		13,537		11,198		11,653
Due after five years through ten years	8,410		8,890		10,022		10,425
Due after ten years	14,017		15,692		13,686		13,987
Total	$	37,339	$	39,931	$	36,421	$	37,571