Investments (Tables)

12 Months Ended

Dec. 31, 2014

Net Investment Income



Years ended December 31
(In millions)	2014			2013			2012
Fixed maturity securities	$	1,803		$	1,827		$	1,846
Short term investments	3			3			5
Limited partnership investments	263			451			251
Equity securities	12			12			12
Mortgage loans	31			23			17
Trading portfolio	10			17			24
Other	3			2			7
Gross investment income	2,125			2,335			2,162
Investment expense	(58		)	(53		)	(52		)
Net investment income	$	2,067		$	2,282		$	2,110

Net realized investment gains (losses)

Net Realized Investment Gains (Losses)



Years ended December 31
(In millions)	2014			2013			2012
Net realized investment gains (losses):
Fixed maturity securities:
Gross realized gains	$	170		$	185		$	222
Gross realized losses	(129		)	(144		)	(145		)
Net realized investment gains (losses) on fixed maturity securities	41			41			77
Equity securities:
Gross realized gains	8			13			19
Gross realized losses	(7		)	(35		)	(42		)
Net realized investment gains (losses) on equity securities	1			(22		)	(23		)
Derivatives	(1		)	(9		)	(2		)
Short term investments and other	16			10			2
Net realized investment gains (losses)	$	57		$	20		$	54

Net change in unrealized gains (losses) on investments

Net Change in Unrealized Gains



Years ended December 31
(In millions)	2014		2013			2012
Net change in unrealized gains on investments:
Fixed maturity securities	$	1,511	$	(2,541	)	$	1,871
Equity securities	6		(15		)	5
Other	—		—			(1		)
Total net change in unrealized gains on investments	$	1,517	$	(2,556	)	$	1,875

Components Of Net Other Than Temporary Impairment Losses Recognized In Earnings By Asset Type [Table Text Block]

The components of OTTI losses recognized in earnings by asset type are summarized in the following table.



Years ended December 31
(In millions)	2014		2013		2012
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	18	$	20	$	25
States, municipalities and political subdivisions	46		—		34
Asset-backed:
Residential mortgage-backed	5		19		48
Other asset-backed	1		2		—
Total asset-backed	6		21		48
U.S. Treasury and obligations of government-sponsored enterprises	—		—		1
Total fixed maturity securities available-for-sale	70		41		108
Equity securities available-for-sale:
Common stock	7		8		6
Preferred stock	—		26		36
Total equity securities available-for-sale	7		34		42
Short term investments	—		1		—
OTTI losses recognized in earnings	$	77	$	76	$	150

Summary of fixed maturity and equity securities

Summary of Fixed Maturity and Equity Securities



December 31, 2014	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Unrealized OTTI Losses (Gains)
(In millions)	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Unrealized OTTI Losses (Gains)
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	17,210	$	1,721	$	61	$	18,870	$	—
States, municipalities and political subdivisions	11,285		1,463		8		12,740		—
Asset-backed:
Residential mortgage-backed	5,028		218		13		5,233		(53		)
Commercial mortgage-backed	2,056		93		5		2,144		(2		)
Other asset-backed	1,234		11		10		1,235		—
Total asset-backed	8,318		322		28		8,612		(55		)
U.S. Treasury and obligations of government-sponsored enterprises	26		5		—		31		—
Foreign government	438		16		—		454		—
Redeemable preferred stock	39		3		—		42		—
Total fixed maturity securities available-for-sale	37,316		3,530		97		40,749		$	(55	)
Total fixed maturity securities trading	19						19
Equity securities available-for-sale:
Common stock	38		9		—		47
Preferred stock	172		5		2		175
Total equity securities available-for-sale	210		14		2		222
Total	$	37,545	$	3,544	$	99	$	40,990



December 31, 2013	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Unrealized OTTI Losses (Gains)
(In millions)	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Unrealized OTTI Losses (Gains)
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	19,352	$	1,645	$	135	$	20,862	$	—
States, municipalities and political subdivisions	11,281		548		272		11,557		—
Asset-backed:
Residential mortgage-backed	4,940		123		92		4,971		(37		)
Commercial mortgage-backed	1,995		90		22		2,063		(3		)
Other asset-backed	945		13		3		955		—
Total asset-backed	7,880		226		117		7,989		(40		)
U.S. Treasury and obligations of government-sponsored enterprises	139		6		1		144		—
Foreign government	531		15		3		543		—
Redeemable preferred stock	92		10		—		102		—
Total fixed maturity securities available-for-sale	39,275		2,450		528		41,197		$	(40	)
Total fixed maturity securities trading	36						36
Equity securities available-for-sale:
Common stock	36		9		—		45
Preferred stock	143		1		4		140
Total equity securities available-for-sale	179		10		4		185
Total	$	39,490	$	2,460	$	532	$	41,418

Securities in a gross unrealized loss position

Securities in a Gross Unrealized Loss Position



	Less than 12 Months				12 Months or Longer				Total
December 31, 2014	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
(In millions)	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	1,330	$	46	$	277	$	15	$	1,607	$	61
States, municipalities and political subdivisions	335		5		127		3		462		8
Asset-backed:
Residential mortgage-backed	293		5		189		8		482		13
Commercial mortgage-backed	264		2		99		3		363		5
Other asset-backed	607		10		7		—		614		10
Total asset-backed	1,164		17		295		11		1,459		28
U.S. Treasury and obligations of government-sponsored enterprises	3		—		4		—		7		—
Foreign government	3		—		3		—		6		—
Redeemable preferred stock	3		—		—		—		3		—
Total fixed maturity securities available-for-sale	2,838		68		706		29		3,544		97
Equity securities available-for-sale:
Preferred stock	17		2		1		—		18		2
Total	$	2,855	$	70	$	707	$	29	$	3,562	$	99



	Less than 12 Months				12 Months or Longer				Total
December 31, 2013	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
(In millions)	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	3,592	$	129	$	72	$	6	$	3,664	$	135
States, municipalities and political subdivisions	3,251		197		129		75		3,380		272
Asset-backed:
Residential mortgage-backed	1,293		29		343		63		1,636		92
Commercial mortgage-backed	640		22		—		—		640		22
Other asset-backed	269		3		—		—		269		3
Total asset-backed	2,202		54		343		63		2,545		117
U.S. Treasury and obligations of government-sponsored enterprises	13		1		—		—		13		1
Foreign government	111		3		—		—		111		3
Total fixed maturity securities available-for-sale	9,169		384		544		144		9,713		528
Equity securities available-for-sale:
Preferred stock	87		4		—		—		87		4
Total	$	9,256	$	388	$	544	$	144	$	9,800	$	532

The following table summarizes the activity for the years ended December 31, 2014, 2013 and 2012 related to the pretax credit loss component reflected in Retained earnings on fixed maturity securities still held at December 31, 2014, 2013 and 2012 for which a portion of an OTTI loss was recognized in Other comprehensive income.



Years ended December 31
(In millions)	2014			2013			2012
Beginning balance of credit losses on fixed maturity securities	$	74		$	95		$	92
Additional credit losses for securities for which an OTTI loss was previously recognized	—			2			23
Credit losses for securities for which an OTTI loss was not previously recognized	—			—			2
Reductions for securities sold during the period	(9		)	(23		)	(14		)
Reductions for securities the Company intends to sell or more likely than not will be required to sell	(3		)	—			(8		)
Ending balance of credit losses on fixed maturity securities	$	62		$	74		$	95

Contractual maturity

Contractual Maturity



December 31	2014				2013
(In millions)	Cost or Amortized Cost		Estimated Fair Value		Cost or Amortized Cost		Estimated Fair Value
Due in one year or less	$	2,479	$	2,511	$	2,420	$	2,455
Due after one year through five years	9,054		9,605		9,496		10,068
Due after five years through ten years	12,055		12,584		11,667		11,954
Due after ten years	13,728		16,049		15,692		16,720
Total	$	37,316	$	40,749	$	39,275	$	41,197

- Definition

Tabular disclosure of the amount of other than temporary impairment (OTTI) related to credit losses recognized in earnings including: (a) the beginning balance of the amount related to credit losses on debt securities held by the investor at the beginning of the period for which a portion of an OTTI was recognized in other comprehensive income; (b) additions for the amount related to the credit loss for which an OTTI was not previously recognized; (c) reductions for securities sold during the period (realized); (d) reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the investor intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis; (e) additional increases to the amount related to the credit loss for which an OTTI was previously recognized when the investor does not intend to sell the security and it is not more likely than not that the investor will be required to sell the security before recovery of its amortized cost basis; (f) reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security; and (g) the ending balance of the amount related to credit losses on debt securities held by the entity at the end of the period for which a portion of an OTTI was recognized in other comprehensive income.

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