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Investments (Tables)

6 Months Ended

Jun. 30, 2011

Investments

Net Investment Income And Investment Gains (Losses)

Three Months Ended
June 30,

Six Months Ended
June 30,

2011

2010

2011

2010

(In millions)

Net investment income consists of:

Fixed maturity securities

$

505

$

519

$

1,011

$

1,029

Short term investments

4

7

7

14

Limited partnerships

22

7

156

87

Equity securities

6

9

12

19

Income (loss) from trading portfolio (a)

(8

)

(5

)

15

16

Other

5

2

9

5

Total investment income

534

539

1,210

1,170

Investment expenses

(15

)

(13

)

(30

)

(27

)

Net investment income

$

519

$

526

$

1,180

$

1,143

(a) Includes net unrealized gains/(losses) related to changes in fair value on trading securities still held of $(17), $21, $1 and $41 for the three and six months ended June 30, 2011 and 2010.

Investment gains (losses) are as follows:

Fixed maturity securities

$

20

$

66

$

40

$

93

Equity securities

(2

)

(28

)

(2

)

(25

)

Derivative instruments

(18

)

(1

)

(31

)

Short term investments

1

1

3

4

Other

(10

)

2

(9

)

Investment gains (a)

$

19

$

11

$

42

$

32

(a) Includes gross realized gains of $90, $133, $183 and $235 and gross realized losses of $72, $95, $145 and $167 on available-for-sale securities for the three and six months ended June 30, 2011 and 2010.

Components Of Other-Than-Temporary Impairment ("OTTI") (Losses) Recognized In Earnings By Asset Type


		Three Months Ended June 30,								Six Months Ended June 30,
		2011				2010				2011				2010
(In millions)

Fixed maturity securities available-for-sale:
Corporate and other bonds		$	15			$	24			$	24			$	42
States, municipalities and political subdivisions							6								20
Asset-backed:
Residential mortgage-backed			46				11				74				37
Commercial mortgage-backed															2
Other asset-backed							2								2

Total fixed maturities available-for-sale			61				43				98				103

Equity securities available-for-sale:
Common stock			1				5				4				5
Preferred stock							9				1				9

Total equity securities available-for-sale			1				14				5				14

Net OTTI losses recognized in earnings		$	62			$	57			$	103			$	117

Amortized Cost And Fair Values Of Securities


June 30, 2011		Cost or Amortized Cost				Gross Unrealized Gains				Gross Unrealized Losses				Estimated Fair Value				Unrealized OTTI Losses (Gains)
(In millions)

Fixed maturity securities:
Corporate and other bonds		$	19,213			$	1,705			$	39			$	20,879
States, municipalities and political subdivisions			8,628				357				268				8,717
Asset-backed:
Residential mortgage-backed			6,076				103				166				6,013			$	61
Commercial mortgage-backed			1,011				62				36				1,037				(9	)
Other asset-backed			925				17				9				933

Total asset-backed			8,012				182				211				7,983				52
U.S. Treasury and obligations of government-sponsored enterprises			231				14				1				244
Foreign government			659				18								677
Redeemable preferred stock			48				6								54

Fixed maturities available-for-sale			36,791				2,282				519				38,554				52
Fixed maturities, trading			305								6				299

Total fixed maturities			37,096				2,282				525				38,853				52

Equity securities:
Common stock			107				26								133
Preferred stock			213				2				2				213

Equity securities available-for-sale			320				28				2				346				—
Equity securities, trading			588				102				40				650

Total equity securities			908				130				42				996				—

Total		$	38,004			$	2,412			$	567			$	39,849			$	52


December 31, 2010

Fixed maturity securities:
Corporate and other bonds		$	19,503			$	1,603			$	70			$	21,036
States, municipalities and political subdivisions			8,157				142				410				7,889
Asset-backed:
Residential mortgage-backed			6,255				101				265				6,091			$	114
Commercial mortgage-backed			994				40				41				993				(2	)
Other asset-backed			753				18				8				763

Total asset-backed			8,002				159				314				7,847				112
U.S. Treasury and obligations of government-sponsored enterprises			122				16				1				137
Foreign government			602				18								620
Redeemable preferred stock			47				7								54

Fixed maturities available-for-sale			36,433				1,945				795				37,583				112
Fixed maturities, trading			244								13				231

Total fixed maturities			36,677				1,945				808				37,814				112

Equity securities:
Common stock			90				25								115
Preferred stock			332				2				9				325

Equity securities available-for-sale			422				27				9				440				—
Equity securities, trading			557				123				34				646

Total equity securities			979				150				43				1,086				—

Total		$	37,656			$	2,095			$	851			$	38,900			$	112

Securities Available-For-Sale In A Gross Unrealized Loss Position


		Less than 12 Months								Greater than 12 Months								Total
June 30, 2011		Estimated Fair Value				Gross Unrealized Losses				Estimated Fair Value				Gross Unrealized Losses				Estimated Fair Value				Gross Unrealized Losses
(In millions)

Fixed maturity securities:
Corporate and other bonds		$	1,321			$	23			$	197			$	16			$	1,518			$	39
States, municipalities and political subdivisions			1,331				62				663				206				1,994				268
Asset-backed:
Residential mortgage-backed			2,131				42				1,016				124				3,147				166
Commercial mortgage-backed			317				15				194				21				511				36
Other asset-backed			168				4				61				5				229				9

Total asset-backed			2,616				61				1,271				150				3,887				211
U.S. Treasury and obligations of government-sponsored enterprises			118				1												118				1

Total fixed maturities available-for-sale			5,386				147				2,131				372				7,517				519

Equity securities available-for-sale:
Preferred stock			90				1				19				1				109				2

Total		$	5,476			$	148			$	2,150			$	373			$	7,626			$	521


December 31, 2010

Fixed maturity securities:
Corporate and other bonds		$	1,719			$	34			$	405			$	36			$	2,124			$	70
States, municipalities and political subdivisions			3,339				164				745				246				4,084				410
Asset-backed:
Residential mortgage-backed			1,800				52				1,801				213				3,601				265
Commercial mortgage-backed			164				3				333				38				497				41
Other asset-backed			122				1				60				7				182				8

Total asset-backed			2,086				56				2,194				258				4,280				314
U.S. Treasury and obligations of government-sponsored enterprises			8				1												8				1

Total fixed maturities available-for-sale			7,152				255				3,344				540				10,496				795
Equity securities available-for-sale:
Preferred stock			175				5				70				4				245				9

Total		$	7,327			$	260			$	3,414			$	544			$	10,741			$	804

Pretax Fixed Maturity Credit Loss Component Reflected Within Retained Earnings


		Three Months Ended June 30,								Six Months Ended June 30,
		2011				2010				2011				2010
(In millions)

Beginning balance of credit losses on fixed maturity securities		$	113			$	171			$	141			$	164

Additional credit losses for which an OTTI loss was previously recognized			8				11				18				22
Credit losses for which an OTTI loss was not previously recognized							3				1				8
Reductions for securities sold during the period			(21	)			(14	)			(46	)			(23	)
Reductions for securities the Company intends to sell or more likely than not will be required to sell			(18	)							(32	)

Ending balance of credit losses on fixed maturity securities		$	82			$	171			$	82			$	171

States, Municipalities And Political Subdivisions Securities In A Gross Unrealized Loss Position By Ratings Distribution


June 30, 2011		Amortized Cost				Estimated Fair Value				Gross Unrealized Losses
(In millions)

AAA		$	412			$	387			$	25
AA			1,050				877				173
A			713				650				63
BBB			71				65				6
Non-investment grade			16				15				1

Total		$	2,262			$	1,994			$	268

Asset-Backed Securities In Gross Unrealized Loss Position By Ratings Distribution

June 30, 2011

Amortized
Cost

Estimated
Fair Value

Gross
Unrealized
Losses

(In millions)

U.S. Government, Government Agencies and Government-Sponsored Enterprises

$

1,881

$

1,852

$

29

AAA

688

660

28

AA

318

295

23

A

173

164

9

BBB

296

256

40

Non-investment grade and equity tranches

742

660

82

Total

$

4,098

$

3,887

$

211

Contractual Maturity


		June 30, 2011								December 31, 2010
		Amortized Cost				Estimated Fair Value				Amortized Cost				Estimated Fair Value
(In millions)

Due in one year or less		$	1,641			$	1,649			$	1,515			$	1,506
Due after one year through five years			11,352				11,882				11,198				11,653
Due after five years through ten years			9,778				10,274				10,034				10,437
Due after ten years			14,020				14,749				13,686				13,987

Total		$	36,791			$	38,554			$	36,433			$	37,583

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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