Fair Value (Tables)

3 Months Ended

Mar. 31, 2012

Fair Value Disclosures [Abstract]

Assets and liabilities measured at fair value on a recurring basis

Assets and liabilities measured at fair value on a recurring basis are summarized below.

March 31, 2012									Total Assets/(Liabilities) at Fair Value
(In millions)	Level 1		Level 2			Level 3
Assets
Fixed maturity securities:
Corporate and other bonds	$	—	$	20,802		$	486		$	21,288
States, municipalities and political subdivisions	—		10,010			173			10,183
Asset-backed:
Residential mortgage-backed	—		5,547			447			5,994
Commercial mortgage-backed	—		1,224			105			1,329
Other asset-backed	—		655			384			1,039
Total asset-backed	—		7,426			936			8,362
U.S. Treasury and obligations of government-sponsored enterprises	194		42			—			236
Foreign government	124		531			—			655
Redeemable preferred stock	5		55			53			113
Total fixed maturity securities	323		38,866			1,648			40,837
Equity securities	115		109			74			298
Derivative and other financial instruments, included in Other invested assets	—		—			11			11
Short term investments	797		583			—			1,380
Life settlement contracts, included in Other assets	—		—			115			115
Separate account business	5		393			4			402
Total assets	$	1,240	$	39,951		$	1,852		$	43,043
Liabilities
Derivative financial instruments, included in Other liabilities	$	—	$	(1	)	$	(1	)	$	(2	)
Total liabilities	$	—	$	(1	)	$	(1	)	$	(2	)

December 31, 2011								Total Assets/(Liabilities) at Fair Value
(In millions)	Level 1		Level 2		Level 3
Assets
Fixed maturity securities:
Corporate and other bonds	$	—	$	20,402	$	482		$	20,884
States, municipalities and political subdivisions	—		9,611		171			9,782
Asset-backed:
Residential mortgage-backed	—		5,323		452			5,775
Commercial mortgage-backed	—		1,295		59			1,354
Other asset-backed	—		612		343			955
Total asset-backed	—		7,230		854			8,084
U.S. Treasury and obligations of government-sponsored enterprises	451		42		—			493
Foreign government	92		544		—			636
Redeemable preferred stock	5		53		—			58
Total fixed maturity securities	548		37,882		1,507			39,937
Equity securities	124		113		67			304
Derivative and other financial instruments, included in Other invested assets	—		1		11			12
Short term investments	1,106		508		27			1,641
Life settlement contracts, included in Other assets	—		—		117			117
Separate account business	21		373		23			417
Total assets	$	1,799	$	38,877	$	1,752		$	42,428
Liabilities
Derivative financial instruments, included in Other liabilities	$	—	$	—	$	(1	)	$	(1	)
Total liabilities	$	—	$	—	$	(1	)	$	(1	)

Table of reconciliation for assets and liablities measured at fair value on a recurring basis using significant unobservable inputs

The tables below present a reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2012 and 2011.

Level 3 (In millions)	Balance at January 1, 2012		Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss)*		Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss)			Purchases		Sales			Settlements			Transfers into Level 3		Transfers out of Level 3			Balance at March 31, 2012		Unrealized gains (losses) on Level 3 assets and liabilities held at March 31, 2012 recognized in net income (loss)*
Fixed maturity securities:
Corporate and other bonds	$	482	$	3	$	4		$	79	$	(86	)	$	(19	)	$	33	$	(10	)	$	486	$	—
States, municipalities and political subdivisions	171		—		2			—		—			—			—		—			173		—
Asset-backed:
Residential mortgage-backed	452		1		(4		)	38		—			(7		)	—		(33		)	447		—
Commercial mortgage-backed	59		—		4			42		—			—			—		—			105		—
Other asset-backed	343		4		4			176		(77		)	(25		)	—		(41		)	384		—
Total asset-backed	854		5		4			256		(77		)	(32		)	—		(74		)	936		—
Redeemable preferred stock	—		—		—			53		—			—			—		—			53		—
Total fixed maturity securities	1,507		8		10			388		(163		)	(51		)	33		(84		)	1,648		—
Equity securities	67		—		(3		)	11		(1		)	—			—		—			74		(2		)
Derivative and other financial instruments, net	10		—		—			—		—			—			—		—			10		—
Short term investments	27		—		—			12		—			(39		)	—		—			—		—
Life settlement contracts	117		3		—			—		—			(5		)	—		—			115		(1		)
Separate account business	23		—		—			—		(19		)	—			—		—			4		—
Total	$	1,751	$	11	$	7		$	411	$	(183	)	$	(95	)	$	33	$	(84	)	$	1,851	$	(3	)

Level 3 (In millions)	Balance at January 1, 2011		Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss)*			Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss)			Purchases		Sales			Settlements			Transfers into Level 3		Transfers out of Level 3			Balance at March 31, 2011		Unrealized gains (losses) on Level 3 assets and liabilities held at March 31, 2011 recognized in net income (loss)*
Fixed maturity securities:
Corporate and other bonds	$	624	$	4		$	(5	)	$	42	$	(20	)	$	(27	)	$	9	$	(50	)	$	577	$	—
States, municipalities and political subdivisions	266		—			1			—		—			(79		)	—		—			188		—
Asset-backed:																								—
Residential mortgage-backed	767		1			2			47		(26		)	(22		)	—		(31		)	738		—
Commercial mortgage-backed	73		3			16			—		(4		)	—			—		—			88		—
Other asset-backed	359		4			—			200		(87		)	(31		)	—		—			445		—
Total asset-backed	1,199		8			18			247		(117		)	(53		)	—		(31		)	1,271		—
Redeemable preferred stock	3		3			(3		)	—		(3		)	—			—		—			—		—
Total fixed maturity securities	2,092		15			11			289		(140		)	(159		)	9		(81		)	2,036		—
Equity securities	26		(1		)	(1		)	15		(9		)	—			—		—			30		(3		)
Derivative and other financial instruments, net	25		2			—			—		(19		)	—			—		—			8		1
Short term investments	27		—			—			12		—			(2		)	—		(10		)	27		—
Life settlement contracts	129		3			—			—		—			(5		)	—		—			127		(1		)
Separate account business	41		—			—			—		(2		)	—			—		—			39		—
Total	$	2,340	$	19		$	10		$	316	$	(170	)	$	(166	)	$	9	$	(91	)	$	2,267	$	(3	)

Quantitative information about significant unobservable inputs in the fair value measurement of level 3 assets

(In millions, except per share data)	Fair Value at March 31, 2012		Valuation Technique(s)	Unobservable Input(s)	Range  (Weighted Average)
Assets
Fixed maturity securities	$	204	Discounted cash flow	Expected call date assumption	0.5 - 5.5 years (2.2 years)
	$	53	Market approach	Private offering price	$26.5 million per unit
Equity securities	$	69	Market approach	Private offering price	$0.10 - $4,023 per share ($211.01 per share)
Life settlement contracts	$	115	Discounted cash flow	Discount rate risk premium Mortality assumption	9% 65% - 928% (181%)

Carrying amount and estimated fair value of financial instrument assets and liabilities not measured at fair value

The carrying amount and estimated fair value of the Company's financial instrument assets and liabilities which are not measured at fair value on the Condensed Consolidated Balance Sheets are listed in the tables below.

March 31, 2012	Carrying Amount		Estimated Fair Value
(In millions)			Level 1		Level 2		Level 3		Total
Financial assets
Notes receivable for the issuance of common stock	$	23	$	—	$	—	$	23	$	23
Mortgage loans	281		—		—		295		295
Financial liabilities
Premium deposits and annuity contracts	$	108	$	—	$	—	$	112	$	112
Short term debt	83		—		84		—		84
Long term debt	2,526		—		2,794		—		2,794

December 31, 2011	Carrying Amount		Estimated Fair Value
(In millions)
Financial assets
Notes receivable for the issuance of common stock	$	22	$	22
Mortgage loans	234		247
Financial liabilities
Premium deposits and annuity contracts	$	109	$	114
Short term debt	83		84
Long term debt	2,525		2,679