Fair Value (Tables)

3 Months Ended

Mar. 31, 2014

Fair Value Disclosures [Abstract]

Assets and liabilities measured at fair value on a recurring and nonrecurring basis

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

March 31, 2014								Total Assets/(Liabilities) at Fair Value
(In millions)	Level 1			Level 2		Level 3
Assets
Fixed maturity securities:
Corporate and other bonds	$	24		$	18,623	$	189	$	18,836
States, municipalities and political subdivisions	—			11,769		86		11,855
Asset-backed:
Residential mortgage-backed	—			4,585		359		4,944
Commercial mortgage-backed	—			1,927		126		2,053
Other asset-backed	—			537		439		976
Total asset-backed	—			7,049		924		7,973
U.S. Treasury and obligations of government-sponsored enterprises	135			6		—		141
Foreign government	76			500		—		576
Redeemable preferred stock	23			11		—		34
Total fixed maturity securities	258			37,958		1,199		39,415
Equity securities	117			55		2		174
Other invested assets	—			55		—		55
Short term investments	1,353			651		—		2,004
Life settlement contracts, included in Other assets	—			—		87		87
Total recurring basis assets	1,728			38,719		1,288		41,735
Assets held for sale - nonrecurring basis	—		—	3,486		—		3,486
Total assets	$	1,728		$	42,205	$	1,288	$	45,221
Liabilities
Liabilities held for sale - nonrecurring basis	$	—		$	3,250	$	—	$	3,250
Total liabilities	$	—		$	3,250	$	—	$	3,250

December 31, 2013							Total Assets/(Liabilities) at Fair Value
(In millions)	Level 1		Level 2		Level 3
Assets
Fixed maturity securities:
Corporate and other bonds	$	33	$	20,661	$	204	$	20,898
States, municipalities and political subdivisions	—		11,486		71		11,557
Asset-backed:
Residential mortgage-backed	—		4,640		331		4,971
Commercial mortgage-backed	—		1,912		151		2,063
Other asset-backed	—		509		446		955
Total asset-backed	—		7,061		928		7,989
U.S. Treasury and obligations of government-sponsored enterprises	116		28		—		144
Foreign government	81		462		—		543
Redeemable preferred stock	45		57		—		102
Total fixed maturity securities	275		39,755		1,203		41,233
Equity securities	126		48		11		185
Other invested assets	—		54		—		54
Short term investments	769		563		—		1,332
Life settlement contracts, included in Other assets	—		—		88		88
Separate account business	9		171		1		181
Total assets	$	1,179	$	40,591	$	1,303	$	43,073

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, 2014 and 2013.

Level 3 (In millions)	Balance at January 1, 2014		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, 2014		Unrealized gains (losses) on Level 3 assets and liabilities held at March 31, 2014 recognized in net income (loss)*
Fixed maturity securities:
Corporate and other bonds	$	204	$	1	$	1		$	5	$	(4	)	$	(5	)	$	3	$	(16	)	$	189	$	—
States, municipalities and political subdivisions	71		—		1			—		—			—			14		—			86		—
Asset-backed:
Residential mortgage-backed	331		1		15			25		—			(21		)	21		(13		)	359		—
Commercial mortgage-backed	151		1		(1		)	—		—			(1		)	—		(24		)	126		—
Other asset-backed	446		1		—			148		(83		)	(72		)	—		(1		)	439		—
Total asset-backed	928		3		14			173		(83		)	(94		)	21		(38		)	924		—
Total fixed maturity securities	1,203		4		16			178		(87		)	(99		)	38		(54		)	1,199		—
Equity securities	11		3		(4		)	—		(8		)	—			—		—			2		—
Life settlement contracts	88		10		—			—		—			(11		)	—		—			87		1
Separate account business	1		—		—			—		—			—			—		(1		)	—		—
Total	$	1,303	$	17	$	12		$	178	$	(95	)	$	(110	)	$	38	$	(55	)	$	1,288	$	1

Level 3 (In millions)	Balance at January 1, 2013		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, 2013			Unrealized gains (losses) on Level 3 assets and liabilities held at March 31, 2013 recognized in net income (loss)*
Fixed maturity securities:
Corporate and other bonds	$	219	$	—		$	2	$	110	$	(17	)	$	(20	)	$	26	$	(18	)	$	302		$	(1	)
States, municipalities and political subdivisions	96		(3		)	—		85		(47		)	(2		)	—		—			129			—
Asset-backed:
Residential mortgage-backed	413		3			—		61		—			(11		)	—		(16		)	450			—
Commercial mortgage-backed	129		1			5		73		—			(7		)	—		(24		)	177			—
Other asset-backed	368		3			1		136		(99		)	(13		)	—		—			396			—
Total asset-backed	910		7			6		270		(99		)	(31		)	—		(40		)	1,023			—
Redeemable preferred stock	26		—			—		—		—			—			—		—			26			—
Total fixed maturity securities	1,251		4			8		465		(163		)	(53		)	26		(58		)	1,480			(1		)
Equity securities	34		(15		)	1		—		—			—			—		(1		)	19			(15		)
Other invested assets, including derivatives, net	—		—			—		—		(1		)	—			—		—			(1		)	—
Short term investments	6		—			—		—		(1		)	—			—		—			5			—
Life settlement contracts	100		7			—		—		—			(12		)	—		—			95			—
Separate account business	2		—			—		—		—			—			—		—			2			—
Total	$	1,393	$	(4	)	$	9	$	465	$	(165	)	$	(65	)	$	26	$	(59	)	$	1,600		$	(16	)

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

The table below presents quantitative information about the significant unobservable inputs utilized by the Company in the fair value measurements of Level 3 assets. Valuations for assets and liabilities not presented in the table below are primarily based on broker/dealer quotes for which there is a lack of transparency as to inputs used to develop the valuations. The quantitative detail of these unobservable inputs is neither provided nor reasonably available to the Company.

Assets (In millions)	Fair Value at March 31, 2014		Valuation Technique	Unobservable Input(s)	Range  (Weighted Average)
Fixed maturity securities	$	116	Discounted cash flow	Credit spread	2% - 15% (4%)
Equity securities	$	2	Market approach	Private offering price	$4,295 per share
Life settlement contracts	$	87	Discounted cash flow	Discount rate risk premium	9%
				Mortality assumption	70% - 743% (191%)

Assets (In millions)	Fair Value at December 31, 2013		Valuation Technique	Unobservable Input(s)	Range  (Weighted Average)
Fixed maturity securities	$	142	Discounted cash flow	Credit spread	2% - 20% (4%)
Equity securities	$	10	Market approach	Private offering price	$360 - $4,268 per share ($1,148)
Life settlement contracts	$	88	Discounted cash flow	Discount rate risk premium	9%
				Mortality assumption	70% - 743% (192%)

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, 2014	Carrying Amount		Estimated Fair Value
(In millions)			Level 1		Level 2		Level 3		Total
Financial assets
Notes receivable for the issuance of common stock	$	22	$	—	$	—	$	22	$	22
Mortgage loans	495		—		—		510		510
Financial liabilities
Short term debt	$	549	—		569		—		569
Long term debt	2,558		—		2,908		—		2,908

December 31, 2013	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	508		—		—		515		515
Financial liabilities
Premium deposits and annuity contracts	$	57	$	—	$	—	$	58	$	58
Short term debt	549		—		575		—		575
Long term debt	2,011		—		2,328		—		2,328