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Investments (Tables)
 9 Months Ended
Sep. 30, 2015
Investments [Abstract]  
Net investment income
The significant components of Net investment income are presented in the following table.
Periods ended September 30
Three Months

Nine Months
(In millions)
2015

2014

2015

2014
Fixed maturity securities
$
449

 
$
453

 
$
1,344

 
$
1,356

Equity securities
3

 
2

 
9

 
7

Limited partnership investments
(93
)
 
29

 
69

 
199

Mortgage loans
8

 
7

 
25

 
22

Short term investments
2

 
1

 
4

 
2

Trading portfolio
1

 
2

 
6

 
8

Other
1

 
—

 
1

 
3

Gross investment income
371

 
494

 
1,458

 
1,597

Investment expense
(17
)
 
(14
)
 
(46
)
 
(41
)
Net investment income
$
354

 
$
480

 
$
1,412

 
$
1,556
Net realized investment gains (losses)
Net realized investment gains (losses) are presented in the following table.
Periods ended September 30
Three Months
 
Nine Months
(In millions)
2015
 
2014
 
2015
 
2014
Net realized investment gains (losses):
 
 
 
 
 
 
 
Fixed maturity securities:
 
 
 
 
 
 
 
Gross realized gains
$
22

 
$
51

 
$
91

 
$
124

Gross realized losses
(51
)
 
(12
)
 
(120
)
 
(66
)
Net realized investment gains (losses) on fixed maturity securities
(29
)
 
39

 
(29
)
 
58

Equity securities:
 
 
 
 
 
 
 

Gross realized gains
1

 
1

 
2

 
6

Gross realized losses
(19
)
 
(4
)
 
(21
)
 
(4
)
Net realized investment gains (losses) on equity securities
(18
)
 
(3
)
 
(19
)
 
2

Derivative financial instruments
(1
)
 
—

 
9

 
1

Short term investments and other
(1
)
 
1

 
—

 
8

Net realized investment gains (losses)
$
(49
)
 
$
37

 
$
(39
)
 
$
69
Components of Net other-than-temporary impairment losses recognized in earnings by asset type
The components of Net other-than-temporary impairment (OTTI) losses recognized in earnings by asset type are presented in the following table.
Periods ended September 30
Three Months
 
Nine Months
(In millions)
2015
 
2014
 
2015
 
2014
Fixed maturity securities available-for-sale:
 
 
 
 
 
 
 
Corporate and other bonds
$
36

 
$
6

 
$
52

 
$
9

States, municipalities and political subdivisions
—

 
—

 
18

 
—

Asset-backed:
 
 
 
 
 
 
 
Residential mortgage-backed
1

 
2

 
7

 
4

Other asset-backed
—

 
—

 
1

 
1

Total asset-backed
1

 
2

 
8

 
5

Total fixed maturity securities available-for-sale
37

 
8

 
78

 
14

Equity securities available-for-sale -- Common stock
19

 
2

 
20

 
3

Short term investments
—

 
—

 
1

 
—

Net OTTI losses recognized in earnings
$
56

 
$
10

 
$
99

 
$
17
Summary of fixed maturity and equity securities
The following tables present a summary of fixed maturity and equity securities.
September 30, 2015
Cost or
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
 
Unrealized
OTTI
Losses (Gains)
(In millions)
 
 
 
 
Fixed maturity securities available-for-sale:
 
 
 
 
 
 
 
 
 
Corporate and other bonds
$
17,155

 
$
1,237

 
$
207

 
$
18,185

 
$
—

States, municipalities and political subdivisions
11,978

 
1,336

 
17

 
13,297

 
(5
)
Asset-backed:
 
 
 
 
 
 
 
 
 
Residential mortgage-backed
4,850

 
204

 
13

 
5,041

 
(46
)
Commercial mortgage-backed
2,183

 
77

 
9

 
2,251

 
—

Other asset-backed
1,009

 
11

 
4

 
1,016

 
—

Total asset-backed
8,042

 
292

 
26

 
8,308

 
(46
)
U.S. Treasury and obligations of government-sponsored enterprises
24

 
5

 
—

 
29

 
—

Foreign government
333

 
12

 
1

 
344

 
—

Redeemable preferred stock
33

 
2

 
—

 
35

 
—

Total fixed maturity securities available-for-sale
37,565

 
2,884

 
251

 
40,198

 
$
(51
)
Total fixed maturity securities trading
3

 


 


 
3

 
 
Equity securities available-for-sale:
 
 
 
 
 
 
 
 
 
Common stock
62

 
3

 
—

 
65

 


Preferred stock
145

 
4

 
2

 
147

 


Total equity securities available-for-sale
207

 
7

 
2

 
212

 


Total
$
37,775

 
$
2,891

 
$
253

 
$
40,413

 



December 31, 2014
Cost or
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
 
Unrealized
OTTI
Losses (Gains)
(In millions)
 
 
 
 
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

 
Securities in a gross unrealized loss position
The following tables present the estimated fair value and gross unrealized losses of fixed maturity and equity securities in a gross unrealized loss position by the length of time in which the securities have continuously been in that position.
 
Less than 12 Months
 
12 Months or Longer
 
Total
September 30, 2015
Estimated
Fair Value
 
Gross
Unrealized
Losses
 
Estimated
Fair Value
 
Gross
Unrealized
Losses
 
Estimated
Fair Value
 
Gross
Unrealized
Losses
(In millions)
 
 
 
 
 
Fixed maturity securities available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
Corporate and other bonds
$
3,744

 
$
177

 
$
188

 
$
30

 
$
3,932

 
$
207

States, municipalities and political subdivisions
655

 
11

 
131

 
6

 
786

 
17

Asset-backed:
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage-backed
308

 
3

 
211

 
10

 
519

 
13

Commercial mortgage-backed
479

 
6

 
81

 
3

 
560

 
9

Other asset-backed
354

 
4

 
9

 
—

 
363

 
4

Total asset-backed
1,141

 
13

 
301

 
13

 
1,442

 
26

U.S. Treasury and obligations of government-sponsored enterprises
1

 
—

 
—

 
—

 
1

 
—

Foreign government
23

 
—

 
3

 
1

 
26

 
1

Redeemable preferred stock
3

 
—

 
—

 
—

 
3

 
—

Total fixed maturity securities available-for-sale
5,567

 
201

 
623

 
50

 
6,190

 
251

Equity securities available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
Preferred stock
3

 
—

 
14

 
2

 
17

 
2

Total
$
5,570

 
$
201

 
$
637

 
$
52

 
$
6,207

 
$
253


 
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)
 
 
 
 
 
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
Activity related to the pretax fixed maturity credit loss component reflected within retained earnings for securities still held for which a portion of an OTTI loss was recognized in OCI
The following table presents the activity related to the pretax credit loss component reflected in Retained earnings on fixed maturity securities still held as of September 30, 2015 and 2014 for which a portion of an OTTI loss was recognized in Other comprehensive income (loss).
Periods ended September 30
Three Months
 
Nine Months
(In millions)
2015
 
2014
 
2015
 
2014
Beginning balance of credit losses on fixed maturity securities
$
59

 
$
66

 
$
62

 
$
74

Reductions for securities sold during the period
(2
)
 
(2
)
 
(5
)
 
(7
)
Reductions for securities the Company intends to sell or more likely than not will be required to sell
—

 
—

 
—

 
(3
)
Ending balance of credit losses on fixed maturity securities
$
57

 
$
64

 
$
57

 
$
64
Contractual maturity
The following table presents available-for-sale fixed maturity securities by contractual maturity.
 
September 30, 2015
 
December 31, 2014
(In millions)
Cost or
Amortized
Cost
 
Estimated
Fair
Value
 
Cost or
Amortized
Cost
 
Estimated
Fair
Value
Due in one year or less
$
1,406

 
$
1,425

 
$
2,479

 
$
2,511

Due after one year through five years
7,772

 
8,186

 
9,054

 
9,605

Due after five years through ten years
14,149

 
14,577

 
12,055

 
12,584

Due after ten years
14,238

 
16,010

 
13,728

 
16,049

Total
$
37,565

 
$
40,198

 
$
37,316

 
$
40,749
Summary of aggregate contractual or notional amounts and gross estimated fair values related to derivative financial instruments
The following tables present the aggregate contractual or notional amounts and estimated fair values related to derivative financial instruments.
September 30, 2015
Contractual/
Notional
Amount
 
Estimated Fair Value
(In millions)
 
Asset
 
Liability
Without hedge designation
 
 
 
 
 
Equity warrants
$
5

 
$
—

 
$
—

Embedded derivative on funds withheld liability
182

 
—

 
(5
)
Total
 
 
$
—

 
$
(5
)

December 31, 2014
Contractual/
Notional
Amount
 
Estimated Fair Value
(In millions)
 
Asset
 
Liability
Without hedge designation
 
 
 
 
 
Currency forwards
$
9

 
$
—

 
$
—

Equity warrants
5

 
—

 
—

Embedded derivative on funds withheld liability
184

 
—

 
3

Total
 
 
$
—

 
$
3