Derivative Financial Instruments

3 Months Ended

Mar. 31, 2013

Summary of Derivative Instruments [Abstract]

Derivative Financial Instruments

Note D. Derivative Financial Instruments

A summary of the recognized gains (losses) related to derivative financial instruments follows.

Recognized Gains (Losses)

Three months ended March 31
(In millions)	2013		2012
Without hedge designation
Currency forwards	$	2	$	(1	)
Total without hedge designation	2		(1		)
Trading activities
Futures sold, not yet purchased	—		1
Total	$	2	$	—

Gross estimated fair values of derivative positions are presented in Other invested assets and Other liabilities on the Condensed Consolidated Balance Sheets. There would be no significant difference in the balance included in such accounts if the estimated fair values were presented net for the periods ended March 31, 2013 and December 31, 2012. The contractual or notional amounts for derivatives are used to calculate the exchange of contractual payments under the agreements and may not be representative of the potential for gain or loss on these instruments.

Derivative Financial Instruments

March 31, 2013	Contractual/ Notional Amount		Estimated Fair Value
(In millions)			Asset		(Liability)
Without hedge designation
Credit default swaps - purchased protection	$	20	$	—	$	(1	)
Currency forwards	43		1		—
Forward commitments for mortgage-backed securities	78		—		—
Equity warrants	5		—		—
Total	$	146	$	1	$	(1	)

December 31, 2012	Contractual/ Notional Amount		Estimated Fair Value
(In millions)			Asset		(Liability)
Without hedge designation
Credit default swaps - purchased protection	$	20	$	—	$	(1	)
Currency forwards	59		—		(2		)
Equity warrants	5		—		—
Total	$	84	$	—	$	(3	)

During the three months ended March 31, 2013, new derivative transactions entered into totaled $604 million in notional value while derivative termination activity totaled $542 million. This activity was primarily attributable to forward commitments for mortgage-backed securities, interest rate futures and foreign currency forwards. During the three months ended March 31, 2012, new derivative transactions entered into totaled $332 million in notional value while derivative termination activity totaled $321 million. This activity was primarily attributable to interest rate futures and foreign currency forwards.