Fair Value (Tables)

3 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

Assets and liabilities measured at fair value on a recurring basis

Assets and liabilities measured at fair value on a recurring basis are presented in the following tables.

March 31, 2015							Total Assets/ Liabilities at Fair Value
(In millions)	Level 1		Level 2		Level 3
Assets
Fixed maturity securities:
Corporate and other bonds	$	29	$	18,337	$	186	$	18,552
States, municipalities and political subdivisions	—		12,877		86		12,963
Asset-backed:
Residential mortgage-backed	—		4,994		232		5,226
Commercial mortgage-backed	—		2,196		64		2,260
Other asset-backed	—		570		553		1,123
Total asset-backed	—		7,760		849		8,609
U.S. Treasury and obligations of government-sponsored enterprises	29		1		—		30
Foreign government	37		372		—		409
Redeemable preferred stock	30		12		—		42
Total fixed maturity securities	125		39,359		1,121		40,605
Equity securities	149		63		13		225
Derivative financial instruments	—		2		—		2
Other invested assets, excluding derivative financial instruments	—		41		—		41
Short term investments	742		678		—		1,420
Life settlement contracts, included in Other assets	—		—		79		79
Total assets	$	1,016	$	40,143	$	1,213	$	42,372
Liabilities
Other liabilities	$	—	$	5	$	—	$	5
Total liabilities	$	—	$	5	$	—	$	5

December 31, 2014							Total Assets/Liabilities at Fair Value
(In millions)	Level 1		Level 2		Level 3
Assets
Fixed maturity securities:
Corporate and other bonds	$	32	$	18,695	$	162	$	18,889
States, municipalities and political subdivisions	—		12,646		94		12,740
Asset-backed:
Residential mortgage-backed	—		5,044		189		5,233
Commercial mortgage-backed	—		2,061		83		2,144
Other asset-backed	—		580		655		1,235
Total asset-backed	—		7,685		927		8,612
U.S. Treasury and obligations of government-sponsored enterprises	28		3		—		31
Foreign government	41		413		—		454
Redeemable preferred stock	30		12		—		42
Total fixed maturity securities	131		39,454		1,183		40,768
Equity securities	145		61		16		222
Other invested assets	—		41		—		41
Short term investments	681		963		—		1,644
Life settlement contracts, included in Other assets	—		—		82		82
Total assets	$	957	$	40,519	$	1,281	$	42,757
Liabilities
Other liabilities	$	—	$	3	$	—	$	3
Total liabilities	$	—	$	3	$	—	$	3

Table of reconciliation for assets and liablities measured at fair value on a recurring basis using significant unobservable inputs

The following tables present a reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3).

Level 3 (In millions)	Balance as of January 1, 2015		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 as of March 31, 2015		Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2015 recognized in Net income (loss)
Fixed maturity securities:
Corporate and other bonds	$	162	$	1	$	—		$	12	$	(12	)	$	(14	)	$	37	$	—		$	186	$	—
States, municipalities and political subdivisions	94		1		—			—		—			(9		)	—		—			86		—
Asset-backed:
Residential mortgage-backed	189		1		—			72		—			(10		)	—		(20		)	232		—
Commercial mortgage-backed	83		1		1			6		—			(1		)	—		(26		)	64		—
Other asset-backed	655		1		9			35		(144		)	(3		)	—		—			553		—
Total asset-backed	927		3		10			113		(144		)	(14		)	—		(46		)	849		—
Total fixed maturity securities	1,183		5		10			125		(156		)	(37		)	37		(46		)	1,121		—
Equity securities	16		—		(3		)	—		—			—			—		—			13		—
Life settlement contracts	82		13		—			—		—			(16		)	—		—			79		1
Total	$	1,281	$	18	$	7		$	125	$	(156	)	$	(53	)	$	37	$	(46	)	$	1,213	$	1

Level 3 (In millions)	Balance as of 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 as of March 31, 2014		Unrealized gains (losses) on Level 3 assets and liabilities held as of 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

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

The following tables present 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.

March 31, 2015
(In millions)	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range  (Weighted Average)
Fixed maturity securities	$	102	Discounted cash flow	Credit spread	2% - 13% (3%)
Equity securities	13		Market approach	Private offering price	$10 - $4,400 per share ($682)
Life settlement contracts	79		Discounted cash flow	Discount rate risk premium	9%
				Mortality assumption	55% - 1676% (164%)

December 31, 2014
(In millions)	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range  (Weighted Average)
Fixed maturity securities	$	101	Discounted cash flow	Credit spread	2% - 13% (3%)
Equity securities	16		Market approach	Private offering price	$12 - $4,391 per share ($600)
Life settlement contracts	82		Discounted cash flow	Discount rate risk premium	9%
				Mortality assumption	55% - 1676% (163%)

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 assets and liabilities which are not measured at fair value on the Condensed Consolidated Balance Sheets are presented in the following tables.

March 31, 2015	Carrying Amount		Estimated Fair Value
(In millions)			Level 1		Level 2		Level 3		Total
Assets
Notes receivable for the issuance of common stock	$	1	$	—	$	—	$	1	$	1
Mortgage loans	586		—		—		612		612
Liabilities
Long term debt	$	2,560	$	—	$	2,908	$	—	$	2,908

December 31, 2014	Carrying Amount		Estimated Fair Value
(In millions)			Level 1		Level 2		Level 3		Total
Assets
Notes receivable for the issuance of common stock	$	1	$	—	$	—	$	1	$	1
Mortgage loans	588		—		—		608		608
Liabilities
Long term debt	$	2,559	$	—	$	2,883	$	—	$	2,883