Fair Value (Tables)

3 Months Ended

Mar. 31, 2015

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 presented in the following tables:

March 31, 2015	Level 1			Level 2			Level 3		Total
(In millions)
Fixed maturity securities:
Corporate and other bonds	$	29		$	18,344		$	186	$	18,559
States, municipalities and political subdivisions					12,848			86		12,934
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
Fixed maturities available-for-sale		125			39,337			1,121		40,583
Fixed maturities trading					36			89		125
Total fixed maturities	$	125		$	39,373		$	1,210	$	40,708
Equity securities available-for-sale	$	149		$	63		$	13	$	225
Equity securities trading		418						1		419
Total equity securities	$	567		$	63		$	14	$	644
Short term investments	$	5,595		$	678				$	6,273
Other invested assets		103			41					144
Receivables		3			28					31
Life settlement contracts							$	79		79
Payable to brokers		(365	)		(8	)				(373)

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)

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

The following tables present reconciliations for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2015 and 2014:

																			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
2015	January 1		Net Income		OCI		Purchases		Sales		Settlements		Level 3		Level 3		March 31		March 31
(In millions)
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	$	-
Fixed maturities available-for-sale		1,183		5		10		125		(156)		(37)		37		(46)		1,121
Fixed maturities trading		90								(1)								89
Total fixed maturities	$	1,273	$	5	$	10	$	125	$	(157)	$	(37)	$	37	$	(46)	$	1,210	$	-
Equity securities available-for-sale	$	16			$	(3)											$	13
Equity securities trading		1																1
Total equity securities	$	17	$	-	$	(3)	$	-	$	-	$	-	$	-	$	-	$	14	$	-
Life settlement contracts	$	82	$	13							$	(16)					$	79	$	1

																			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		March 31		March 31
(In millions)
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
Fixed maturities available-for-sale		1,203		4		16		178		(87)		(99)		38		(54)		1,199
Fixed maturities trading		80		5														85	$	5
Total fixed maturities	$	1,283	$	9	$	16	$	178	$	(87)	$	(99)	$	38	$	(54)	$	1,284	$	5
Equity securities available-for-sale	$	11	$	3	$	(4)			$	(8)							$	2
Equity securities trading		8		(1)			$	1		(6)								2	$	(1)
Total equity securities	$	19	$	2	$	(4)	$	1	$	(14)	$	-	$	-	$	-	$	4	$	(1)
Life settlement contracts	$	88	$	10							$	(11)					$	87	$	1
Separate account business		1													$	(1)		-
Derivative financial instruments, net		(3)		(1)	$	(1)	$	(2)	$	1		1						(5)		2

Quantitative Information about Significant Unobservable Inputs Utilized by Company Fair Value in Measurements 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 unobservable inputs from these broker quotes is neither provided nor reasonably available to the Company.

					Range
			Valuation	Unobservable	(Weighted
March 31, 2015	Fair Value		Techniques	Inputs	Average)
	(In millions)
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 per share)
Life settlement contracts		79	Discounted cash flow	Discount rate risk premium		9%
				Mortality assumption		55% – 1,676% (164%)
December 31, 2014
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%)

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

The carrying amounts reported on the Consolidated Condensed 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
March 31, 2015	Amount		Level 1	Level 2		Level 3		Total
(In millions)
Assets:
Other invested assets, primarily mortgage loans	$	586				$	612	$	612
Liabilities:
Short term debt		685		$	670		35		705
Long term debt		9,850			9,813		470		10,283
December 31, 2014
Assets:
Other invested assets, primarily mortgage loans	$	588				$	608	$	608
Liabilities:
Short term debt		334		$	255		84		339
Long term debt		10,320			10,299		420		10,719