Fair Value (Tables)

12 Months Ended

Dec. 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.

December 31, 2012									Total Assets/(Liabilities) at Fair Value
(In millions)	Level 1		Level 2			Level 3
Assets
Fixed maturity securities:
Corporate and other bonds	$	6	$	22,011		$	219		$	22,236
States, municipalities and political subdivisions	—		10,687			96			10,783
Asset-backed:
Residential mortgage-backed	—		5,507			413			5,920
Commercial mortgage-backed	—		1,693			129			1,822
Other asset-backed	—		584			368			952
Total asset-backed	—		7,784			910			8,694
U.S. Treasury and obligations of government-sponsored enterprises	158		24			—			182
Foreign government	140		473			—			613
Redeemable preferred stock	40		59			26			125
Total fixed maturity securities	344		41,038			1,251			42,633
Equity securities	117		98			34			249
Other invested assets	—		58			1			59
Short term investments	987		799			6			1,792
Life settlement contracts, included in Other assets	—		—			100			100
Separate account business	4		306			2			312
Total assets	$	1,452	$	42,299		$	1,394		$	45,145
Liabilities
Derivative financial instruments, included in Other liabilities	$	—	$	(2	)	$	(1	)	$	(3	)
Total liabilities	$	—	$	(2	)	$	(1	)	$	(3	)

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
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 years ended December 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 December 31, 2012		Unrealized gains (losses) on Level 3 assets and liabilities held at December 31, 2012 recognized in net income (loss)*
Fixed maturity securities:
Corporate and other bonds	$	482	$	6		$	4		$	231	$	(136	)	$	(88	)	$	45	$	(325	)	$	219	$	(3	)
States, municipalities and political subdivisions	171		—			—			14		—			(89		)	—		—			96		—
Asset-backed:
Residential mortgage-backed	452		(14		)	2			97		—			(40		)	—		(84		)	413		(18		)
Commercial mortgage-backed	59		8			14			165		(12		)	(28		)	13		(90		)	129		—
Other asset-backed	343		11			8			615		(365		)	(128		)	—		(116		)	368		—
Total asset-backed	854		5			24			877		(377		)	(196		)	13		(290		)	910		(18		)
Redeemable preferred stock	—		—			(1		)	53		(26		)	—			—		—			26		—
Total fixed maturity securities	1,507		11			27			1,175		(539		)	(373		)	58		(615		)	1,251		(21		)
Equity securities	67		(36		)	6			27		(16		)	—			—		(14		)	34		(38		)
Other invested assets, including derivatives, net	10		—			—			—		—			(10		)	—		—			—		—
Short term investments	27		—			—			23		(4		)	(41		)	1		—			6		—
Life settlement contracts	117		53			—			—		—			(70		)	—		—			100		11
Separate account business	23		—			—			—		(21		)	—			—		—			2		—
Total	$	1,751	$	28		$	33		$	1,225	$	(580	)	$	(494	)	$	59	$	(629	)	$	1,393	$	(48	)

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 December 31, 2011		Unrealized gains (losses) on Level 3 assets and liabilities held at December 31, 2011 recognized in net income (loss)*
Fixed maturity securities:
Corporate and other bonds	$	624	$	(11	)	$	(1	)	$	484	$	(204	)	$	(149	)	$	79	$	(340	)	$	482	$	(12	)
States, municipalities and political subdivisions	266		—			(1		)	3		—			(92		)	—		(5		)	171		—
Asset-backed:
Residential mortgage-backed	767		(16		)	(11		)	225		(290		)	(60		)	—		(163		)	452		(6		)
Commercial mortgage-backed	73		20			(7		)	81		(27		)	—			—		(81		)	59		—
Other asset-backed	359		(9		)	5			537		(341		)	(99		)	2		(111		)	343		(5		)
Total asset-backed	1,199		(5		)	(13		)	843		(658		)	(159		)	2		(355		)	854		(11		)
Redeemable preferred stock	3		3			(3		)	—		(3		)	—			—		—			—		—
Total fixed maturity securities	2,092		(13		)	(18		)	1,330		(865		)	(400		)	81		(700		)	1,507		(23		)
Equity securities	26		(2		)	2			66		(27		)	—			5		(3		)	67		(3		)
Other invested assets, including derivatives, net	25		3			—			1		(19		)	—			—		—			10		2
Short term investments	27		—			—			39		—			(29		)	—		(10		)	27		—
Life settlement contracts	129		33			—			—		—			(45		)	—		—			117		5
Separate account business	41		—			—			—		(6		)	—			—		(12		)	23		—
Total	$	2,340	$	21		$	(16	)	$	1,436	$	(917	)	$	(474	)	$	86	$	(725	)	$	1,751	$	(19	)

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

Assets (In millions)	Fair Value at December 31, 2012		Valuation Technique(s)	Unobservable Input(s)	Range  (Weighted Average)
Fixed maturity securities	$	121	Discounted cash flow	Expected call date	3.3 - 5.3 years (4.3 years)
				Credit spread adjustment	0.02% - 0.48% (0.17%)
	$	72	Market approach	Private offering price	$42.39 - $102.32 ($100.11)
Equity securities	$	34	Market approach	Private offering price	$4.54 - $3,842.00 per share ($571.17 per share)
Life settlement contracts	$	100	Discounted cash flow	Discount rate risk premium	9%
				Mortality assumption	69% - 883% (208.9%)

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

December 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	$	21	$	—	$	—	$	21	$	21
Mortgage loans	401		—		—		418		418
Financial liabilities
Premium deposits and annuity contracts	$	100	$	—	$	—	$	104	$	104
Short term debt	13		—		13		—		13
Long term debt	2,557		—		3,016		—		3,016

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