Fair Value (Tables)

6 Months Ended

Jun. 30, 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.

June 30, 2014							Total Assets/(Liabilities) at Fair Value
(In millions)	Level 1		Level 2		Level 3
Assets
Fixed maturity securities:
Corporate and other bonds	$	34	$	18,891	$	194	$	19,119
States, municipalities and political subdivisions	—		12,258		79		12,337
Asset-backed:
Residential mortgage-backed	—		4,885		185		5,070
Commercial mortgage-backed	—		2,040		59		2,099
Other asset-backed	—		559		626		1,185
Total asset-backed	—		7,484		870		8,354
U.S. Treasury and obligations of government-sponsored enterprises	62		4		—		66
Foreign government	60		490		—		550
Redeemable preferred stock	30		12		—		42
Total fixed maturity securities	186		39,139		1,143		40,468
Equity securities	137		55		2		194
Other invested assets	—		45		—		45
Short term investments	1,323		606		—		1,929
Life settlement contracts, included in Other assets	—		—		86		86
Total recurring basis assets	1,646		39,845		1,231		42,722
Assets held for sale - nonrecurring basis	—		3,593		—		3,593
Total assets	$	1,646	$	43,438	$	1,231	$	46,315
Liabilities
Liabilities held for sale - nonrecurring basis	$	—	$	3,343	$	—	$	3,343
Total liabilities	$	—	$	3,343	$	—	$	3,343

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 June 30, 2014 and 2013.

Level 3 (In millions)	Balance at April 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 June 30, 2014		Unrealized gains (losses) on Level 3 assets and liabilities held at June 30, 2014 recognized in net income (loss)*
Fixed maturity securities:
Corporate and other bonds	$	189	$	1		$	—	$	21	$	(6	)	$	(5	)	$	5	$	(11	)	$	194	$	—
States, municipalities and political subdivisions	86		1			1		1		(10		)	—			—		—			79		—
Asset-backed:
Residential mortgage-backed	359		(24		)	47		22		(174		)	(19		)	—		(26		)	185		—
Commercial mortgage-backed	126		1			1		—		(60		)	(1		)	12		(20		)	59		—
Other asset-backed	439		—			4		229		(28		)	(18		)	—		—			626		(1		)
Total asset-backed	924		(23		)	52		251		(262		)	(38		)	12		(46		)	870		(1		)
Total fixed maturity securities	1,199		(21		)	53		273		(278		)	(43		)	17		(57		)	1,143		(1		)
Equity securities	2		—			—		—		—			—			—		—			2		—
Life settlement contracts	87		12			—		—		—			(13		)	—		—			86		1
Total	$	1,288	$	(9	)	$	53	$	273	$	(278	)	$	(56	)	$	17	$	(57	)	$	1,231	$	—

Level 3 (In millions)	Balance at April 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 June 30, 2013		Unrealized gains (losses) on Level 3 assets and liabilities held at June 30, 2013 recognized in net income (loss)*
Fixed maturity securities:
Corporate and other bonds	$	302		$	1		$	(3	)	$	13	$	(73	)	$	(6	)	$	—	$	(32	)	$	202	$	(1	)
States, municipalities and political subdivisions	129			—			4			37		(32		)	(3		)	5		—			140		—
Asset-backed:
Residential mortgage-backed	450			(1		)	(1		)	50		(10		)	(21		)	4		(43		)	428		(2		)
Commercial mortgage-backed	177			—			4			5		—			(2		)	21		(40		)	165		—
Other asset-backed	396			—			(3		)	38		(33		)	(11		)	—		—			387		(1		)
Total asset-backed	1,023			(1		)	—			93		(43		)	(34		)	25		(83		)	980		(3		)
Redeemable preferred stock	26			—			(1		)	—		—			—			—		—			25		—
Total fixed maturity securities	1,480			—			—			143		(148		)	(43		)	30		(115		)	1,347		(4		)
Equity securities	19			(5		)	(1		)	—		—			—			—		—			13		(5		)
Other invested assets, including derivatives, net	(1		)	—			—			—		—			1			—		—			—		—
Short term investments	5			—			—			—		(5		)	—			—		—			—		—
Life settlement contracts	95			4			—			—		—			(8		)	—		—			91		(1		)
Separate account business	2			—			—			—		—			—			—		—			2		—
Total	$	1,600		$	(1	)	$	(1	)	$	143	$	(153	)	$	(50	)	$	30	$	(115	)	$	1,453	$	(10	)

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 six months ended June 30, 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 June 30, 2014		Unrealized gains (losses) on Level 3 assets and liabilities held at June 30, 2014 recognized in net income (loss)*
Fixed maturity securities:
Corporate and other bonds	$	204	$	2		$	1		$	26	$	(10	)	$	(10	)	$	8	$	(27	)	$	194	$	—
States, municipalities and political subdivisions	71		1			2			1		(10		)	—			14		—			79		—
Asset-backed:
Residential mortgage-backed	331		(23		)	62			47		(174		)	(40		)	21		(39		)	185		—
Commercial mortgage-backed	151		2			—			—		(60		)	(2		)	12		(44		)	59		—
Other asset-backed	446		1			4			377		(111		)	(90		)	—		(1		)	626		(1		)
Total asset-backed	928		(20		)	66			424		(345		)	(132		)	33		(84		)	870		(1		)
Total fixed maturity securities	1,203		(17		)	69			451		(365		)	(142		)	55		(111		)	1,143		(1		)
Equity securities	11		3			(4		)	—		(8		)	—			—		—			2		—
Life settlement contracts	88		22			—			—		—			(24		)	—		—			86		2
Separate account business	1		—			—			—		—			—			—		(1		)	—		—
Total	$	1,303	$	8		$	65		$	451	$	(373	)	$	(166	)	$	55	$	(112	)	$	1,231	$	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 June 30, 2013		Unrealized gains (losses) on Level 3 assets and liabilities held at June 30, 2013 recognized in net income (loss)*
Fixed maturity securities:
Corporate and other bonds	$	219	$	1		$	(1	)	$	123	$	(90	)	$	(26	)	$	26	$	(50	)	$	202	$	(2	)
States, municipalities and political subdivisions	96		(3		)	4			122		(79		)	(5		)	5		—			140		—
Asset-backed:
Residential mortgage-backed	413		2			(1		)	111		(10		)	(32		)	4		(59		)	428		(2		)
Commercial mortgage-backed	129		1			9			78		—			(9		)	21		(64		)	165		—
Other asset-backed	368		3			(2		)	174		(132		)	(24		)	—		—			387		(1		)
Total asset-backed	910		6			6			363		(142		)	(65		)	25		(123		)	980		(3		)
Redeemable preferred stock	26		—			(1		)	—		—			—			—		—			25		—
Total fixed maturity securities	1,251		4			8			608		(311		)	(96		)	56		(173		)	1,347		(5		)
Equity securities	34		(20		)	—			—		—			—			—		(1		)	13		(20		)
Other invested assets, including derivatives, net	—		—			—			—		(1		)	1			—		—			—		—
Short term investments	6		—			—			—		(6		)	—			—		—			—		—
Life settlement contracts	100		11			—			—		—			(20		)	—		—			91		(1		)
Separate account business	2		—			—			—		—			—			—		—			2		—
Total	$	1,393	$	(5	)	$	8		$	608	$	(318	)	$	(115	)	$	56	$	(174	)	$	1,453	$	(26	)

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 June 30, 2014		Valuation Technique	Unobservable Input(s)	Range  (Weighted Average)
Fixed maturity securities	$	115	Discounted cash flow	Credit spread	2% - 15% (4%)
Equity securities	$	2	Market approach	Private offering price	$4,334 per share
Life settlement contracts	$	86	Discounted cash flow	Discount rate risk premium	9%
				Mortality assumption	70% - 743% (194%)

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.

June 30, 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	$	1	$	—	$	—	$	1	$	1
Mortgage loans	518		—		—		540		540
Financial liabilities
Short term debt	$	549	$	—	$	563	$	—	$	563
Long term debt	2,558		—		2,947		—		2,947

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