Derivative Financial Instruments

9 Months Ended

Sep. 30, 2013

Summary of Derivative Instruments [Abstract]

Derivative Financial Instruments

Note D. Derivative Financial Instruments

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 September 30, 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

September 30, 2013	Contractual/ Notional Amount		Estimated Fair Value
(In millions)			Asset		(Liability)
Without hedge designation
Credit default swaps - purchased protection	$	20	$	—	$	—
Currency forwards	27		—		(1		)
Equity warrants	5		—		—
Total without hedge designation	52		—		(1		)
Trading activities
Futures sold, not yet purchased	17		—		—
Total	$	69	$	—	$	(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 and nine months ended September 30, 2013, new derivative transactions entered into totaled $224 million and $2,271 million in notional value while derivative termination activity totaled $221 million and $2,286 million. This activity was attributable to forward commitments for mortgage-backed securities, interest rate futures and foreign currency forwards. During the three and nine months ended September 30, 2012, new derivative transactions entered into totaled $472 million and $1,251 million in notional value while derivative termination activity totaled $488 million and $1,200 million. This activity was primarily attributable to interest rate futures, forward commitments for mortgage-backed securities and foreign currency forwards.