Schedule II. Condensed Financial Information of Registrant (Parent Company) (Tables)

12 Months Ended

Dec. 31, 2011

Statements of Operations



Years ended December 31
(In millions)	2011			2010			2009
Revenues
Net investment income	$	1		$	4		$	3
Net realized investment gains (losses)	(9		)	(1		)	8
Other income	40			96			101
Total revenues	32			99			112
Expenses
Administrative and general	3			5			2
Interest	167			148			116
Total expenses	170			153			118
Loss from operations before income taxes and equity in net income of subsidiaries	(138		)	(54		)	(6		)
Income tax benefit	46			19			2
Loss before equity in net income of subsidiaries	(92		)	(35		)	(4		)
Equity in net income of subsidiaries	706			725			423
Net income	$	614		$	690		$	419

Balance Sheets



December 31
(In millions, except share data)	2011			2010
Assets
Investment in subsidiaries	$	13,564		$	12,780
Fixed maturity securities available-for-sale, at fair value (amortized cost of $2 and $3)	2			3
Short term investments	292			215
Amounts due from subsidiaries	—			11
Surplus note due from subsidiary	250			500
Other assets	18			16
Total assets	$	14,126		$	13,525
Liabilities and equity
Liabilities:
Short term debt	$	3		$	399
Long term debt	2,525			2,131
Other liabilities	41			41
Total liabilities	2,569			2,571
Equity:
Common stock ($2.50 par value; 500,000,000 shares authorized; 273,040,243 shares issued; 269,274,900 and 269,139,198 shares outstanding)	683			683
Additional paid-in capital	2,146			2,200
Retained earnings	8,382			7,876
Accumulated other comprehensive income	470			326
Treasury stock (3,765,343 and 3,901,045 shares), at cost	(102		)	(105		)
Notes receivable for the issuance of common stock	(22		)	(26		)
Total equity	11,557			10,954
Total liabilities and equity	$	14,126		$	13,525

Statements of Cash Flows



Years ended December 31
(In millions)	2011			2010			2009
Cash Flows from Operating Activities
Net income	$	614		$	690		$	419
Adjustments to reconcile net income to net cash flows provided (used) by operating activities:
Equity in net income of subsidiaries	(706		)	(725		)	(423		)
Dividends received from subsidiaries	—			1			—
Net realized investment (gains) losses	9			1			(8		)
Other, net	55			85			(21		)
Total adjustments	(642		)	(638		)	(452		)
Net cash flows provided (used) by operating activities	$	(28	)	$	52		$	(33	)
Cash Flows from Investing Activities
Proceeds from fixed maturity securities	$	1		$	(2	)	$	12
Change in short term investments	(77		)	181			145
Capital contributions to subsidiaries	(38		)	(6		)	(3		)
Return of capital from subsidiaries	6			—			—
Repayment of surplus note by subsidiary	250			500			—
Other, net	1			—			(12		)
Net cash flows provided by investing activities	$	143		$	673		$	142
Cash Flows from Financing Activities
Dividends paid to common stockholders	$	(108	)	$	—		$	—
Dividends paid to Loews for 2008 Senior Preferred	—			(76		)	(122		)
Payment to redeem 2008 Senior Preferred	—			(1,000		)	(250		)
Proceeds from the issuance of debt	396			495			350
Repayment of debt	(409		)	(150		)	(100		)
Stock options exercised	5			3			1
Other, net	1			3			12
Net cash flows used by financing activities	$	(115	)	$	(725	)	$	(109	)
Net change in cash	$	—		$	—		$	—
Cash, beginning of year	—			—			—
Cash, end of year	$	—		$	—		$	—

Debt



December 31
(In millions)	2011		2010
Short term debt:
Senior notes:
6.000%, face amount of $400, due August 15, 2011	$	—	$	399
Other debt	3		—
Total short-term debt	3		399
Long term debt:
Senior notes:
5.850%, face amount of $549, due December 15, 2014	548		548
6.500%, face amount of $350, due August 15, 2016	348		347
6.950%, face amount of $150, due January 15, 2018	149		149
7.350%, face amount of $350, due November 15, 2019	348		348
5.875%, face amount of $500, due August 15, 2020	495		495
5.750%, face amount of $400, due August 15, 2021	396		—
Debenture, 7.250%, face amount of $243, due November 15, 2023	241		241
Other debt	—		3
Total long term debt	2,525		2,131
Total debt	$	2,528	$	2,530