Investments (Tables)

3 Months Ended

Mar. 31, 2016

Investments [Abstract]

Net investment income

The significant components of Net investment income are presented in the following table.

Three months ended March 31
(In millions)	2016			2015
Fixed maturity securities	$	446		$	443
Equity securities	3			3
Limited partnership investments	(14		)	114
Mortgage loans	9			8
Short term investments	3			2
Trading portfolio	2			2
Gross investment income	449			572
Investment expense	(14		)	(14		)
Net investment income	$	435		$	558

Net realized investment gains (losses)

Net realized investment gains (losses) are presented in the following table.

Three months ended March 31
(In millions)	2016			2015
Net realized investment gains (losses):
Fixed maturity securities:
Gross realized gains	$	45		$	33
Gross realized losses	(62		)	(21		)
Net realized investment gains (losses) on fixed maturity securities	(17		)	12
Equity securities:
Gross realized gains	—			1
Gross realized losses	(5		)	(1		)
Net realized investment gains (losses) on equity securities	(5		)	—
Derivative financial instruments	(7		)	(1		)
Short term investments and other	(7		)	(1		)
Net realized investment gains (losses)	$	(36	)	$	10

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.

Three months ended March 31
(In millions)	2016		2015
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	16	$	5
States, municipalities and political subdivisions	—		5
Asset-backed:
Residential mortgage-backed	—		1
Other asset-backed	2		—
Total asset-backed	2		1
Total fixed maturity securities available-for-sale	18		11
Equity securities available-for-sale:
Common stock	5		1
Total equity securities available-for-sale	5		1
OTTI losses recognized in earnings	$	23	$	12

Summary of fixed maturity and equity securities

The following tables present a summary of fixed maturity and equity securities.

March 31, 2016	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	$	17,076	$	1,255	$	224	$	18,107	$	—
States, municipalities and political subdivisions	11,478		1,704		3		13,179		(15		)
Asset-backed:
Residential mortgage-backed	5,028		197		19		5,206		(33		)
Commercial mortgage-backed	2,137		78		16		2,199		—
Other asset-backed	937		4		20		921		—
Total asset-backed	8,102		279		55		8,326		(33		)
U.S. Treasury and obligations of government-sponsored enterprises	133		7		—		140		—
Foreign government	447		17		1		463		—
Redeemable preferred stock	33		2		—		35		—
Total fixed maturity securities available-for-sale	37,269		3,264		283		40,250		$	(48	)
Total fixed maturity securities trading	2						2
Equity securities available-for-sale:
Common stock	37		6		2		41
Preferred stock	145		5		2		148
Total equity securities available-for-sale	182		11		4		189
Total	$	37,453	$	3,275	$	287	$	40,441

December 31, 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	$	17,080	$	1,019	$	342	$	17,757	$	—
States, municipalities and political subdivisions	11,729		1,453		8		13,174		(4		)
Asset-backed:
Residential mortgage-backed	4,935		154		17		5,072		(37		)
Commercial mortgage-backed	2,154		55		12		2,197		—
Other asset-backed	923		6		8		921		—
Total asset-backed	8,012		215		37		8,190		(37		)
U.S. Treasury and obligations of government-sponsored enterprises	62		5		—		67		—
Foreign government	334		13		1		346		—
Redeemable preferred stock	33		2		—		35		—
Total fixed maturity securities available-for-sale	37,250		2,707		388		39,569		$	(41	)
Total fixed maturity securities trading	3						3
Equity securities available-for-sale:
Common stock	46		3		1		48
Preferred stock	145		7		3		149
Total equity securities available-for-sale	191		10		4		197
Total	$	37,444	$	2,717	$	392	$	39,769

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
March 31, 2016	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	$	2,669	$	174	$	274	$	50	$	2,943	$	224
States, municipalities and political subdivisions	90		3		64		—		154		3
Asset-backed:
Residential mortgage-backed	376		11		159		8		535		19
Commercial mortgage-backed	505		14		102		2		607		16
Other asset-backed	572		20		5		—		577		20
Total asset-backed	1,453		45		266		10		1,719		55
U.S. Treasury and obligations of government-sponsored enterprises	23		—		—		—		23		—
Foreign government	54		1		—		—		54		1
Redeemable preferred stock	2		—		—		—		2		—
Total fixed maturity securities available-for-sale	4,291		223		604		60		4,895		283
Equity securities available-for-sale:
Common stock	6		2		—		—		6		2
Preferred stock	17		2		—		—		17		2
Total equity securities available-for-sale	23		4		—		—		23		4
Total	$	4,314	$	227	$	604	$	60	$	4,918	$	287

	Less than 12 Months				12 Months or Longer				Total
December 31, 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	$	4,882	$	302	$	162	$	40	$	5,044	$	342
States, municipalities and political subdivisions	338		8		75		—		413		8
Asset-backed:
Residential mortgage-backed	963		9		164		8		1,127		17
Commercial mortgage-backed	652		10		96		2		748		12
Other asset-backed	552		8		5		—		557		8
Total asset-backed	2,167		27		265		10		2,432		37
U.S. Treasury and obligations of government-sponsored enterprises	4		—		—		—		4		—
Foreign government	54		1		—		—		54		1
Redeemable preferred stock	3		—		—		—		3		—
Total fixed maturity securities available-for-sale	7,448		338		502		50		7,950		388
Equity securities available-for-sale:
Common stock	3		1		—		—		3		1
Preferred stock	13		3		—		—		13		3
Total equity securities available-for-sale	16		4		—		—		16		4
Total	$	7,464	$	342	$	502	$	50	$	7,966	$	392

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 March 31, 2016 and 2015 for which a portion of an OTTI loss was recognized in Other comprehensive income (loss).

Three months ended March 31
(In millions)	2016			2015
Beginning balance of credit losses on fixed maturity securities	$	53		$	62
Additional credit losses for securities for which an OTTI loss was previously recognized	—			—
Reductions for securities sold during the period	(5		)	(1		)
Reductions for securities the Company intends to sell or more likely than not will be required to sell	—			—
Ending balance of credit losses on fixed maturity securities	$	48		$	61

Contractual maturity

The following table presents available-for-sale fixed maturity securities by contractual maturity.

	March 31, 2016				December 31, 2015
(In millions)	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due in one year or less	$	1,747	$	1,773	$	1,574	$	1,595
Due after one year through five years	8,335		8,748		7,721		8,070
Due after five years through ten years	14,587		15,129		14,652		14,915
Due after ten years	12,600		14,600		13,303		14,989
Total	$	37,269	$	40,250	$	37,250	$	39,569