Fair Value (Tables)

12 Months Ended

Dec. 31, 2014

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized in the tables below:

December 31, 2014	Level 1			Level 2			Level 3		Total
(In millions)
Fixed maturity securities:
Corporate and other bonds	$	32		$	18,692		$	162	$	18,886
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
Fixed maturities available-for-sale		131			39,451			1,183		40,765
Fixed maturities trading					30			90		120
Total fixed maturities	$	131		$	39,481		$	1,273	$	40,885
Equity securities available-for-sale	$	145		$	61		$	16	$	222
Equity securities trading		505						1		506
Total equity securities	$	650		$	61		$	17	$	728
Short term investments	$	4,989		$	963				$	5,952
Other invested assets		102			41					143
Receivables		2			7					9
Life settlement contracts							$	82		82
Payable to brokers		(546	)		(6	)				(552)

December 31, 2013	Level 1			Level 2			Level 3			Total
(In millions)
Fixed maturity securities:
Corporate and other bonds	$	33		$	20,625		$	204		$	20,862
States, municipalities and political subdivisions					11,486			71			11,557
Asset-backed:
Residential mortgage-backed					4,640			331			4,971
Commercial mortgage-backed					1,912			151			2,063
Other asset-backed					509			446			955
Total asset-backed					7,061			928			7,989
U.S. Treasury and obligations of government-sponsored enterprises		116			28						144
Foreign government		81			462						543
Redeemable preferred stock		45			57						102
Fixed maturities available-for-sale		275			39,719			1,203			41,197
Fixed maturities trading					43			80			123
Total fixed maturities	$	275		$	39,762		$	1,283		$	41,320
Equity securities available-for-sale	$	126		$	48		$	11		$	185
Equity securities trading		678						8			686
Total equity securities	$	804		$	48		$	19		$	871
Short term investments	$	6,134		$	563					$	6,697
Other invested assets					54						54
Receivables					3						3
Life settlement contracts							$	88			88
Separate account business		9			171			1			181
Payable to brokers		(40	)		(1	)		(3	)		(44)
Assets of discontinued operations		28			2			2			32
Liabilities of discontinued operations					(6	)		(2	)		(8)

Reconciliations of Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs

The tables below present reconciliations for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2014 and 2013:

																			Unrealized
																			Gains
																			(Losses)
																			Recognized in
			Net Realized Gains																Net Income
			(Losses) and Net Change																on Level
			in Unrealized Gains																3 Assets and
			(Losses)										Transfers		Transfers				Liabilities
	Balance,		Included in		Included in								into		out of		Balance,		Held at
2014	January 1		Net Income		OCI		Purchases		Sales		Settlements		Level 3		Level 3		December 31		December 31
(In millions)
Fixed maturity securities:
Corporate and other bonds	$	204	$	2	$	(1)	$	33	$	(23)	$	(16)	$	18	$	(55)	$	162
States, municipalities and political subdivisions		71		1		4		14		(10)				14				94
Asset-backed:
Residential mortgage-backed		331		(21)		61		94		(174)		(72)		32		(62)		189
Commercial mortgage-backed		151		7		(6)		28		(60)		(29)		43		(51)		83
Other asset-backed		446		2		(6)		488		(111)		(117)				(47)		655	$	(1)
Total asset-backed		928		(12)		49		610		(345)		(218)		75		(160)		927		(1)
Fixed maturities available-for-sale		1,203		(9)		52		657		(378)		(234)		107		(215)		1,183		(1)
Fixed maturities trading		80		11						(1)								90		11
Total fixed maturities	$	1,283	$	2	$	52	$	657	$	(379)	$	(234)	$	107	$	(215)	$	1,273	$	10
Equity securities available-for-sale	$	11	$	3	$	(6)	$	16	$	(8)							$	16
Equity securities trading		8		(1)						(6)								1	$	1
Total equity securities	$	19	$	2	$	(6)	$	16	$	(14)	$	-	$	-	$	-	$	17	$	1
Life settlement contracts	$	88	$	33							$	(39)					$	82	$	8
Separate account business		1													$	(1)		-
Derivative financial instruments, net		(3)		1					$	2								-		2

																			Unrealized
																			Gains
																			(Losses)
																			Recognized in
			Net Realized Gains																Net Income
			(Losses) and Net Change																on Level
			in Unrealized Gains																3 Assets and
			(Losses)										Transfers		Transfers				Liabilities
	Balance,		Included in		Included in								into		out of		Balance,		Held at
2013	January 1		Net Income		OCI		Purchases		Sales		Settlements		Level 3		Level 3		December 31		December 31
(In millions)
Fixed maturity securities:
Corporate and other bonds	$	219	$	3			$	123	$	(97)	$	(44)	$	51	$	(51)	$	204	$	(2)
States, municipalities and political subdivisions		96		(2)	$	4		122		(79)		(61)		18		(27)		71
Asset-backed:
Residential mortgage-backed		413		4		(14)		116		(10)		(75)		4		(107)		331		(3)
Commercial mortgage-backed		129				11		107		(3)		(11)		21		(103)		151
Other asset-backed		368		5		(4)		314		(197)		(35)				(5)		446		(2)
Total asset-backed		910		9		(7)		537		(210)		(121)		25		(215)		928		(5)
Redeemable preferred stock		26		(1)								(25)						-
Fixed maturities available-for-sale		1,251		9		(3)		782		(386)		(251)		94		(293)		1,203		(7)
Fixed maturities trading		89		(4)				19		(24)								80		(4)
Total fixed maturities	$	1,340	$	5	$	(3)	$	801	$	(410)	$	(251)	$	94	$	(293)	$	1,283	$	(11)
Equity securities available-for-sale	$	34	$	(27)	$	3	$	2							$	(1)	$	11	$	(27)
Equity securities trading		7		(5)				6										8		(5)
Total equity securities	$	41	$	(32)	$	3	$	8	$	-	$	-	$	-	$	(1)	$	19	$	(32)
Short term investments	$	6							$	(6)							$	-
Other invested assets		1								(1)								-
Life settlement contracts		100	$	13							$	(25)						88	$	(2)
Separate account business		2					$	1		(2)								1
Derivative financial instruments, net		5		8	$	(9)		(2)		1		(6)						(3)		1

Quantitative Information about Significant Unobservable Inputs Utilized by Company Fair Value in Measurements of Level 3 Assets

The tables below 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 unobservable inputs from these broker quotes is neither provided nor reasonably available to the Company.

December 31, 2014	Fair Value		Valuation         Techniques	Unobservable Inputs	Range (Weighted Average)
	(In millions)
Assets
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 per share)
Life settlement contracts		82	Discounted cash flow	Discount rate risk premium	9%
				Mortality assumption	55% – 1,676% (163%)
December 31, 2013
Assets
Fixed maturity securities	$	142	Discounted cash flow	Credit spread	2% – 20% (4%)
Equity securities		10	Market approach	Private offering price	$360 – $4,268 per share
					($1,148 per share)
Life settlement contracts		88	Discounted cash flow	Discount rate risk premium	9%
				Mortality assumption	70% – 743% (192%)

Carrying Amount and Estimated Fair Value of Financial Instrument Assets and Liabilities Not Measured at Fair Value

The carrying amounts reported on the Consolidated Balance Sheets for cash and short term investments not carried at fair value and certain other assets and liabilities approximate fair value due to the short term nature of these items.

	Carrying		Estimated Fair Value
December 31, 2014	Amount		Level 1	Level 2		Level 3		Total
(In millions)
Financial Assets:
Other invested assets, primarily mortgage loans	$	588				$	608	$	608
Financial Liabilities:
Short term debt		334		$	255		84		339
Long term debt		10,320			10,299		420		10,719
December 31, 2013
Financial Assets:
Other invested assets, primarily mortgage loans	$	508				$	515	$	515
Financial Liabilities:
Premium deposits and annuity contracts		57					58		58
Short term debt		818		$	832		20		852
Long term debt		9,515			9,907		182		10,089
Long term debt included in discontinued operations		500			500				500