Derivative Financial Instruments

6 Months Ended

Jun. 30, 2014

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 at June 30, 2014 and December 31, 2013. 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

June 30, 2014	Contractual/ Notional Amount		Estimated Fair Value
(In millions)			Asset		(Liability)
Without hedge designation
Currency forwards	$	6	$	—	$	—
Equity warrants	5		—		—
Total	$	11	$	—	$	—

December 31, 2013	Contractual/ Notional Amount		Estimated Fair Value
(In millions)			Asset		(Liability)
Without hedge designation
Equity warrants	$	5	$	—	$	—

During the three and six months ended June 30, 2014, new derivative transactions entered into totaled $181 million and $248 million in notional value while derivative termination activity totaled $175 million and $242 million. This activity was primarily attributable to forward commitments for mortgage-backed securities as well as interest rate futures. During the three and six months ended June 30, 2013, new derivative transactions entered into totaled $1,443 million and $2,047 million in notional value while derivative termination activity totaled $1,523 million and $2,065 million. This activity was attributable to forward commitments for mortgage-backed securities, interest rate futures and foreign currency forwards.