10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

RQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2014

OR

oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

for the transition period from            to           

Commission file number 1-08323

Cigna Corporation

(Exact name of registrant as specified in its charter)

Delaware	06-1059331
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
900 Cottage Grove Road Bloomfield, Connecticut	06002
(Address of principal executive offices)	(Zip Code)
(860) 226-6000
Registrant’s telephone number, including area code
(860) 226-6741
Registrant’s facsimile number, including area code
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark				YES	NO
· whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.				R	o
· whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).				R	o
·whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer R	Accelerated filero	Non-accelerated filero	Smaller Reporting Companyo
· whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).				o	R

As of July 15, 2014,  263,817,071 shares of the issuer’s common stock were outstanding.

Cigna Corporation

INDEX

PART I	FINANCIAL INFORMATION	Page
Item 1.	Financial Statements (Unaudited)	1
	Consolidated Statements of Income	1
	Consolidated Statements of Comprehensive Income	2
	Consolidated Balance Sheets	3
	Consolidated Statements of Changes in Total Equity	4
	Consolidated Statements of Cash Flows	6
	Notes to the Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	41
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	64
Item 4.	Controls and Procedures	65
PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	66
Item 1.A.	Risk Factors	67
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	68
Item 4.	Mine Safety Disclosures	68
Item 6.	Exhibits	69
SIGNATURE		70
INDEX TO EXHIBITS		E-1

As used herein, “Cigna” or the “Company” refers to one or more of Cigna Corporation and its consolidated subsidiaries.

Part I.   FINANCIAL INFORMATION

Item 1.   FINANCIAL STATEMENTS

Cigna Corporation

Consolidated Statements of Income

	Unaudited				Unaudited
	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions, except per share amounts)	2014		2013		2014		2013
Revenues
Premiums and fees	$	7,758	$	7,172	$	15,374	$	14,486
Net investment income	294		289		571		576
Mail order pharmacy revenues	547		437		1,042		862
Other revenues	69		56		135		74
Realized investment gains (losses):
Other-than-temporary impairments on fixed maturities	(1)		(8)		(1)		(8)
Other realized investment gains, net	66		34		108		173
Total realized investment gains, net	65		26		107		165
Total revenues	8,733		7,980		17,229		16,163
Benefits and Expenses
Global Health Care medical claims expense	4,219		3,904		8,250		7,951
Other benefit expenses	1,100		997		2,266		2,859
Mail order pharmacy costs	469		362		883		706
Other operating expenses	2,044		1,950		4,076		3,806
Total benefits and expenses	7,832		7,213		15,475		15,322
Income before Income Taxes	901		767		1,754		841
Income taxes:
Current	329		181		639		80
Deferred	-		80		14		196
Total income taxes	329		261		653		276
Net Income	572		506		1,101		565
Less: Net Income (Loss) Attributable to Noncontrolling Interests	(1)		1		-		3
Shareholders’ Net Income	$	573	$	505	$	1,101	$	562
Shareholders’ Net Income Per Share:
Basic	$	2.16	$	1.79	$	4.11	$	1.99
Diluted	$	2.12	$	1.76	$	4.05	$	1.95
Dividends Declared Per Share	$	-	$	-	$	0.04	$	0.04

The accompanying Notes to the Consolidated Financial Statements (unaudited) are an integral part of these statements.

1

Cigna Corporation

Consolidated Statements of Comprehensive Income

	Unaudited				Unaudited
	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2014		2013		2014		2013
Shareholders’ net income	$	573	$	505	$	1,101	$	562
Shareholders’ other comprehensive income (loss):
Net unrealized appreciation (depreciation) on securities:
Fixed maturities	103		(269)		190		(341)
Equity securities	-		-		(1)		2
Net unrealized appreciation (depreciation), on securities	103		(269)		189		(339)
Net unrealized appreciation, derivatives	-		6		-		9
Net translation of foreign currencies	46		(16)		35		(74)
Postretirement benefits liability adjustment	11		21		23		61
Shareholders’ other comprehensive income (loss)	160		(258)		247		(343)
Shareholders’ comprehensive income	733		247		1,348		219
Comprehensive income attributable to noncontrolling interests:
Net income attributable to redeemable noncontrolling interests	2		1		5		3
Net (loss) attributable to other noncontrolling interest	(3)		-		(5)		-
Other comprehensive income (loss) attributable to redeemable noncontrolling interests	3		(6)		-		(9)
Other comprehensive income attributable to other noncontrolling interest	-		-		1		-
Total comprehensive income	$	735	$	242	$	1,349	$	213

The accompanying Notes to the Consolidated Financial Statements (unaudited) are an integral part of these statements.

2

Cigna Corporation

Consolidated Balance Sheets

	Unaudited
	As of				As of
(In millions, except per share amounts)	June 30, 2014				December 31, 2013
Assets
Investments:
Fixed maturities, at fair value (amortized cost, $16,598; $15,273)			$	18,321			$	16,486
Equity securities, at fair value (cost, $136; $146)			131				141
Commercial mortgage loans			2,217				2,252
Policy loans			1,453				1,485
Real estate			62				97
Other long-term investments			1,336				1,273
Short-term investments			232				631
Total investments			23,752				22,365
Cash and cash equivalents			1,967				2,795
Accrued investment income			245				247
Premiums, accounts and notes receivable, net			2,657				1,991
Reinsurance recoverables			7,132				7,299
Deferred policy acquisition costs			1,510				1,395
Property and equipment			1,498				1,464
Deferred tax assets, net			-				92
Goodwill			6,033				6,029
Other assets, including other intangibles			2,492				2,407
Separate account assets			8,643				8,252
Total assets			$	55,929			$	54,336
Liabilities
Contractholder deposit funds			$	8,459			$	8,470
Future policy benefits			9,583				9,306
Unpaid claims and claim expenses			4,389				4,298
Global Health Care medical claims payable			2,276				2,050
Unearned premiums and fees			625				580
Total insurance and contractholder liabilities			25,332				24,704
Accounts payable, accrued expenses and other liabilities			5,726				5,456
Short-term debt			121				233
Long-term debt			5,022				5,014
Deferred tax liabilities, net			34				-
Separate account liabilities			8,643				8,252
Total liabilities			44,878				43,659
Contingencies — Note 16
Redeemable noncontrolling interests			99				96
Shareholders’ Equity
Common stock (par value per share, $0.25; shares issued, 366; authorized, 600)			92				92
Additional paid-in capital			3,405				3,356
Net unrealized appreciation, fixed maturities	$	663			$	473
Net unrealized appreciation, equity securities	3				4
Net unrealized depreciation, derivatives	(19)				(19)
Net translation of foreign currencies	117				82
Postretirement benefits liability adjustment	(1,037)				(1,060)
Accumulated other comprehensive loss			(273)				(520)
Retained earnings			14,677				13,676
Less treasury stock, at cost			(6,964)				(6,037)
Total shareholders’ equity			10,937				10,567
Noncontrolling interest			15				14
Total equity			10,952				10,581
Total liabilities and equity			$	55,929			$	54,336
Shareholders’ Equity Per Share			$	41.32			$	38.35

The accompanying Notes to the Consolidated Financial Statements (unaudited) are an integral part of these statements.

3

Cigna Corporation

Consolidated Statements of Changes in Total Equity

					Accumulated												Redeemable
Unaudited			Additional		Other								Non-				Non-
For the three months ended June 30, 2014	Common		Paid-in		Comprehensive		Retained		Treasury		Shareholders’		controlling		Total		controlling
(In millions)	Stock		Capital		Loss		Earnings		Stock		Equity		Interest		Equity		Interests
Balance at April 1, 2014	$	92	$	3,392	$	(433)	$	14,136	$	(6,631)	$	10,556	$	13	$	10,569	$	96
Effect of issuing stock for employee benefit plans			13				(32)		81		62				62
Other comprehensive income					160						160		-		160		3
Net income (loss)							573				573		(3)		570		2
Repurchase of common stock									(414)		(414)				(414)
Capital contribution by noncontrolling interest													5		5		2
Distribution to redeemable noncontrolling interest																	(4)
Balance at June 30, 2014	$	92	$	3,405	$	(273)	$	14,677	$	(6,964)	$	10,937	$	15	$	10,952	$	99

					Accumulated												Redeemable
			Additional		Other								Non-				Non-
For the three months ended June 30, 2013	Common		Paid-in		Comprehensive		Retained		Treasury		Shareholders’		controlling		Total		controlling
(In millions)	Stock		Capital		Loss		Earnings		Stock		Equity		Interest		Equity		Interest
Balance at April 1, 2013	$	92	$	3,305	$	(756)	$	12,328	$	(5,309)	$	9,660	$	-	$	9,660	$	113
Effect of issuing stock for employee benefit plans			21				(27)		81		75				75
Other comprehensive loss					(258)						(258)				(258)		(6)
Net income							505				505				505		1
Repurchase of common stock									(207)		(207)				(207)
Distribution to redeemable noncontrolling interest																	(7)
Balance at June 30, 2013	$	92	$	3,326	$	(1,014)	$	12,806	$	(5,435)	$	9,775	$	-	$	9,775	$	101

The accompanying Notes to the Consolidated Financial Statements (unaudited) are an integral part of these statements.

4

Cigna Corporation

Consolidated Statements of Changes in Total Equity

					Accumulated												Redeemable
Unaudited			Additional		Other								Non-				Non-
For the six months ended June 30, 2014	Common		Paid-in		Comprehensive		Retained		Treasury		Shareholders’		controlling		Total		controlling
(In millions)	Stock		Capital		Loss		Earnings		Stock		Equity		Interest		Equity		Interests
Balance at January 1, 2014	$	92	$	3,356	$	(520)	$	13,676	$	(6,037)	$	10,567	$	14	$	10,581	$	96
Effect of issuing stock for employee benefit plans			49				(89)		130		90				90
Other comprehensive income					247						247		1		248		-
Net income (loss)							1,101				1,101		(5)		1,096		5
Common dividends declared (per share: $0.04)							(11)				(11)				(11)
Repurchase of common stock									(1,057)		(1,057)				(1,057)
Capital contribution by noncontrolling interest													5		5		2
Distribution to redeemable non-controlling interest																	(4)
Balance at June 30, 2014	$	92	$	3,405	$	(273)	$	14,677	$	(6,964)	$	10,937	$	15	$	10,952	$	99

					Accumulated												Redeemable
			Additional		Other								Non-				Non-
For the six months ended June 30, 2013	Common		Paid-in		Comprehensive		Retained		Treasury		Shareholders’		controlling		Total		controlling
(In millions)	Stock		Capital		Loss		Earnings		Stock		Equity		Interest		Equity		Interest
Balance at January 1, 2013	$	92	$	3,295	$	(671)	$	12,330	$	(5,277)	$	9,769	$	-	$	9,769	$	114
Effect of issuing stock for employee benefit plans			31				(75)		146		102				102
Other comprehensive loss					(343)						(343)				(343)		(9)
Net income							562				562				562		3
Common dividends declared (per share: $0.04)							(11)				(11)				(11)
Repurchase of common stock									(304)		(304)				(304)
Distribution to redeemable non-controlling interest																	(7)
Balance at June 30, 2013	$	92	$	3,326	$	(1,014)	$	12,806	$	(5,435)	$	9,775	$	-	$	9,775	$	101

The accompanying Notes to the Consolidated Financial Statements (unaudited) are an integral part of these statements.

5

Cigna Corporation

Consolidated Statements of Cash Flows

	Unaudited
	Six Months Ended June 30,
(In millions)	2014		2013
Cash Flows from Operating Activities
Net income	$	1,101	$	565
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	289		299
Realized investment gains	(107)		(165)
Deferred income taxes	14		196
Gains on sale of businesses	(7)		(8)
Net changes in assets and liabilities, net of non-operating effects:
Premiums, accounts and notes receivable	(660)		(192)
Reinsurance recoverables	67		356
Deferred policy acquisition costs	(100)		(140)
Other assets	(98)		251
Insurance liabilities	359		779
Accounts payable, accrued expenses and other liabilities	78		(359)
Current income taxes	100		(89)
Cash used to effectively exit run-off reinsurance business	-		(2,196)
Other, net	(34)		(20)
Net cash provided by / (used in) operating activities	1,002		(723)
Cash Flows from Investing Activities
Proceeds from investments sold:
Fixed maturities	476		1,269
Equity securities	34		3
Other (primarily short-term and other long-term investments)	1,404		411
Investment maturities and repayments:
Fixed maturities	898		821
Equity securities	-		18
Commercial mortgage loans	214		298
Investments purchased or originated:
Fixed maturities	(2,575)		(914)
Equity securities	(8)		(28)
Commercial mortgage loans	(183)		(22)
Other (primarily short-term and other long-term investments)	(868)		(460)
Property and equipment purchases	(236)		(209)
Other, net	12		(40)
Net cash (used in) / provided by investing activities	(832)		1,147
Cash Flows from Financing Activities
Deposits and interest credited to contractholder deposit funds	790		738
Withdrawals and benefit payments from contractholder deposit funds	(758)		(669)
Change in cash overdraft position	15		29
Net change in short-term debt	(96)		(48)
Repurchase of common stock	(1,029)		(277)
Issuance of common stock	80		91
Common dividends paid	(11)		(11)
Other, net	2		(7)
Net cash used in financing activities	(1,007)		(154)
Effect of foreign currency rate changes on cash and cash equivalents	9		(39)
Net (decrease) / increase in cash and cash equivalents	(828)		231
Cash and cash equivalents, January 1,	2,795		2,978
Cash and cash equivalents, June 30,	$	1,967	$	3,209
Supplemental Disclosure of Cash Information:
Income taxes paid, net of refunds	$	514	$	154
Interest paid	$	132	$	130

The accompanying Notes to the Consolidated Financial Statements (unaudited) are an integral part of these statements.

6

CIGNA CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 1 — Basis of Presentation

Cigna Corporation and its subsidiaries (either individually or collectively referred to as “Cigna”, “the Company”, “we”, or “our”) is a global health services organization with a mission to help its customers improve their health, well-being and sense of security.  Its insurance subsidiaries are major providers of medical, dental, disability, life and accident insurance and related products and services, the majority of which are offered through employers and other groups (e.g. governmental and non-governmental organizations, unions and associations). Cigna also offers Medicare and Medicaid products and health, life and accident insurance coverages primarily to individuals in the U.S. and selected international markets.  In addition to its ongoing operations described above, Cigna also has certain run-off operations.

The Consolidated Financial Statements include the accounts of Cigna Corporation and its subsidiaries. Intercompany transactions and accounts have been eliminated in consolidation.  These Consolidated Financial Statements were prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”).  Amounts recorded in the Consolidated Financial Statements necessarily reflect management’s estimates and assumptions about medical costs, investment valuation, interest rates and other factors.  Significant estimates are discussed throughout these Notes; however, actual results could differ from those estimates.  The impact of a change in estimate is generally included in earnings in the period of adjustment.  Certain reclassifications have been made to prior year amounts to conform to the current presentation.

These interim Consolidated Financial Statements are unaudited but include all adjustments (including normal recurring adjustments) necessary, in the opinion of management, for a fair statement of financial position and results of operations for the periods reported.  The interim Consolidated Financial Statements and notes should be read in conjunction with the Consolidated Financial Statements and Notes included in the Company’s 2013 Form 10-K.  The preparation of interim Consolidated Financial Statements necessarily relies heavily on estimates.  This and certain other factors, including the seasonal nature of portions of the health care and related benefits business as well as competitive and other market conditions, call for caution in estimating full year results based on interim results of operations.

Beginning in the first quarter of 2014, the Company combined the results of its run-off reinsurance business with Other Operations for segment reporting purposes.  Prior year information has been conformed to the current year presentation. See Note 15 for additional information.

Note 2 — Recent Accounting Changes

Accounting for Health Care Reform’s Risk Mitigation Programs.  Beginning in 2014, as prescribed by the Patient Protection and Affordable Care Act (referred to as “Health Care Reform”), three programs went into effect to reduce the risk for participating health insurance companies selling coverage on the public exchanges.

·A three-year (2014-2016) reinsurance program is designed to provide reimbursement to insurers for high cost individual business sold on or off the public exchanges.  The reinsurance entity established by the U.S. Department of Health and Human Services (“HHS”) is funded by a per-customer reinsurance fee assessed on all commercial medical plans, including self-insured group health plans.  Only non-grandfathered individual plans are eligible for recoveries if claims exceed a specified threshold, up to a reinsurance cap.  Reinsurance contributions associated with non-grandfathered individual plans are reported as a reduction in premium revenue, and estimated reinsurance recoveries are established with an offsetting reduction in Global Health Care medical claims expense.  Reinsurance fee contributions for other insured business are reported in other operating expenses.  The Company currently does not administer reinsurance fee contributions on behalf of its self-insured employer clients.

·A permanent risk adjustment program reallocates funds from insurers with lower risk populations to insurers with higher risk populations based on the relative risk scores of participants in non-grandfathered plans in the individual and small group markets, both on and off the exchanges.  Based on the risk of our members compared to the risk of other members in the same state and market, considering data obtained from industry studies, we estimate our year-to-date risk adjustment.  The Company records a risk adjustment receivable or payable, with an offsetting adjustment to premium revenue when the amounts are reasonably estimable and collection is reasonably assured.

·A three year (2014-2016) risk corridor program is designed to limit insurer gains and losses by comparing allowable medical costs to a target amount as defined by HHS.  This program applies to individual and small group qualified health plans,

7

operating on and off the exchanges.  Variances from the target amount exceeding certain thresholds may result in amounts due to or due from HHS.  The Company records a risk corridor receivable or payable as an adjustment to premium revenue based on our year-to-date experience when the amounts are reasonably estimable and collection is reasonably assured.

Revenue from Contracts with Customers (Accounting Standards Update (“ASU”) 2014-09).   In May 2014, the Financial Accounting Standards Board (“FASB”) issued new revenue recognition guidance that will apply to various contracts with customers to provide goods or services, including the Company’s non-insurance, administrative services contracts.   It will not apply to certain contracts within the scope of other GAAP, such as insurance contracts.  This new guidance introduces a model that requires companies to estimate and allocate the expected contract revenue among distinct goods or services in the contract based on relative standalone selling prices.  Revenue is recognized as goods or services are delivered.  This new method replaces the current GAAP approach of recognizing revenue that is fixed and determinable primarily based on contract terms.  In addition, extensive new disclosures will be required including the presentation of additional categories of revenues and information about related contract assets and liabilities.  This new guidance must be implemented on January 1, 2017; early adoption is not permitted.  The Company may choose to adopt these changes through retrospective restatement with or without using certain practical expedients or with a cumulative effect adjustment on adoption.  The Company is currently evaluating these new requirements for its noninsurance customer contracts to determine the method of implementation and any resulting estimated effects on the financial statements.

Fees Paid to the Federal Government by Health Insurers (ASU 2011-06).  Effective January 1, 2014, the Company adopted the FASB’s accounting guidance for the health insurance industry assessment (the “fee”) mandated by Health Care Reform.  This non-deductible fee is being levied based on a ratio of an insurer’s net health insurance premiums written for the previous calendar year compared to the U.S. health insurance industry total.  Based on a preliminary assessment from the Internal Revenue Service for the 2014 fee, the Company adjusted its liability reported in accounts payable, accrued expenses and other liabilities to $245 million during the second quarter of 2014.  The corresponding deferred cost, recorded in other assets, including other intangibles was also adjusted.  Through June 30, 2014, $122 million of the deferred cost was recognized in other operating expenses; the remainder will be recognized on a straight-line basis over the balance of 2014.  The Company expects to be notified of and pay the final 2014 assessment in the third quarter.

Investment Company Accounting (ASU 2013-08).   Effective January 1, 2014, the Company adopted FASB’s amended accounting guidance to change the criteria for reporting as an investment company, clarify the fair value measurement used by an investment company and require additional disclosures.  This guidance also confirms that parent company accounting for an investment company should reflect fair value accounting.  While this guidance applies to certain of the Company’s security and real estate partnership investments, its adoption did not have a material impact on the Company’s financial statements.

Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“AOCI”) (ASU 2013-02).   Effective January 1, 2013, the Company adopted new requirements to disclose the effect of items reclassified out of AOCI into net income for each individual line item impacted in the statement of income.  See Note 13 for the Company’s disclosures.

Disclosures about Offsetting Assets and Liabilities (ASU 2011-11).  The FASB’s new requirements to disclose information related to certain investments on both a gross and net basis became effective January 1, 2013.   The Company had no transactions or arrangements subject to these new disclosure requirements.

8

Note 3 — Earnings Per Share (“EPS”)

Basic and diluted earnings per share were computed as follows:

			Effect of
(Dollars in millions, except per share amounts)	Basic		Dilution		Diluted
Three Months Ended June 30,
2014
Shareholders’ net income	$	573			$	573
Shares (in thousands):
Weighted average	265,377				265,377
Common stock equivalents			4,544		4,544
Total shares	265,377		4,544		269,921
EPS	$	2.16	$	(0.04)	$	2.12
2013
Shareholders’ net income	$	505			$	505
Shares (in thousands):
Weighted average	282,043				282,043
Common stock equivalents			5,043		5,043
Total shares	282,043		5,043		287,086
EPS	$	1.79	$	(0.03)	$	1.76

			Effect of
(Dollars in millions, except per share amounts)	Basic		Dilution		Diluted
Six Months Ended June 30,
2014
Shareholders’ net income	$	1,101			$	1,101
Shares (in thousands):
Weighted average	267,665				267,665
Common stock equivalents			4,516		4,516
Total shares	267,665		4,516		272,181
EPS	$	4.11	$	(0.06)	$	4.05
2013
Shareholders’ net income	$	562			$	562
Shares (in thousands):
Weighted average	282,919				282,919
Common stock equivalents			5,248		5,248
Total shares	282,919		5,248		288,167
EPS	$	1.99	$	(0.04)	$	1.95

9

The following outstanding employee stock options were not included in the computation of diluted earnings per share for the three and six months ended June 30, 2014 and 2013 because their effect was anti-dilutive.

	Three Months Ended		Six Months Ended
	June 30,		June 30,
(In millions)	2014	2013	2014	2013
Antidilutive options	2.0	1.8	2.0	1.8

The Company held 101,424,330 shares of common stock in Treasury as of June 30, 2014, and 82,496,367 shares as of June 30, 2013.

Note 4— Global Health Care Medical Claims Payable

Medical claims payable for the Global Health Care segment reflects estimates of the ultimate cost of claims that have been incurred but not yet reported, those that have been reported but not yet paid (reported claims in process), and other medical expenses payable that is primarily comprised of accruals for incentives and other amounts payable to health care professionals and facilities, as follows:

	June 30,		December 31,
(In millions)	2014		2013
Incurred but not yet reported	$	1,842	$	1,615
Reported claims in process	310		355
Physician incentives and other medical expense payable	124		80
Medical claims payable	$	2,276	$	2,050

Activity in medical claims payable was as follows:

	For the period ended
	June 30,		December 31,
(In millions)	2014		2013
Balance at January 1,	$	2,050	$	1,856
Less: Reinsurance and other amounts recoverable	194		242
Balance at January 1, net	1,856		1,614
Incurred claims related to:
Current year	8,390		16,049
Prior years	(140)		(182)
Total incurred	8,250		15,867
Paid claims related to:
Current year	6,606		14,267
Prior years	1,469		1,358
Total paid	8,075		15,625
Ending Balance, net	2,031		1,856
Add: Reinsurance and other amounts recoverable	245		194
Ending Balance	$	2,276	$	2,050

Reinsurance and other amounts recoverable includes amounts due from reinsurers and policyholders to cover incurred but not reported and pending claims for minimum premium products and certain administrative services only business where the right of offset does not exist.  See Note 5 for additional information on reinsurance.  For the six months ended June 30, 2014, actual experience differed from the Company’s key assumptions resulting in favorable incurred claims related to prior years’ medical claims payable of $140 million, or 0.9% of the current year incurred claims as reported for the year ended December 31, 2013. Actual completion factors accounted for $51 million, or 0.3% of the favorability while actual medical cost trend resulted in the remaining $89 million, or 0.6%.

For the year ended December 31, 2013, actual experience differed from the Company’s key assumptions, resulting in favorable incurred claims related to prior years’ medical claims payable of $182 million, or 1.3% of the current year incurred claims as reported for the year ended December 31, 2012. Actual completion factors accounted for $74 million, or 0.5% of favorability while actual medical cost trend resulted in the remaining $108 million, or 0.7%.

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The impact of prior year development on shareholders’ net income was $46 million for the six months ended June 30, 2014 compared with $68 million for the six months ended June 30, 2013.  The favorable effect of prior year development for both years primarily reflects low utilization of medical services.  The change in the amount of the incurred claims related to prior years in the medical claims payable liability does not directly correspond to an increase or decrease in the Company’s shareholders’ net income recognized for the following reasons:

First, the Company consistently recognizes the actuarial best estimate of the ultimate liability within a level of confidence, as required by actuarial standards of practice that require the liabilities be adequate under moderately adverse conditions.  As the Company establishes the liability for each incurral year, the Company ensures that its assumptions appropriately consider moderately adverse conditions.  When a portion of the development relates to a release of the prior year’s provision for moderately adverse conditions, the Company does not consider that amount as  impacting  shareholders’ net income to the extent that it is offset by an increase determined appropriate to address moderately adverse conditions for the current year incurred claims.

Second, as a result of the MLR provisions of Health Care Reform, changes in medical claim estimates due to prior year development may be offset by a change in the MLR rebate accrual.

Third, changes in reserves for the Company’s retrospectively experience-rated business for accounts in surplus do not usually impact shareholders’ net income because such amounts are generally offset by a change in the liability to the policyholder.  An account is in surplus when the accumulated premium received exceeds the accumulated medical costs and administrative charges, including profit charges. For additional information regarding the Company’s retrospectively experience-rated business, see page 3 of the Company’s 2013 Form 10-K.

The determination of liabilities for the Global Health Care medical claims payable requires the Company to make critical accounting estimates. See Note 2(N) to the Consolidated Financial Statements in the Company’s 2013 Form 10-K.

Note 5 — Reinsurance

The Company’s insurance subsidiaries enter into agreements with other insurance companies to assume and cede reinsurance. Reinsurance is ceded primarily to limit losses from large exposures and to permit recovery of a portion of direct or assumed losses.  Reinsurance is also used in acquisition and disposition transactions when the underwriting company is not being acquired. Reinsurance does not relieve the originating insurer of liability.  The Company regularly evaluates the financial condition of its reinsurers and monitors its concentrations of credit risk.

Effective Exit of GMDB and GMIB Business

On February 4, 2013, the Company entered into an agreement with Berkshire Hathaway Life Insurance Company of Nebraska (“Berkshire”) to effectively exit the GMDB and GMIB business via a reinsurance transaction.  Berkshire reinsured 100% of the Company’s future claim payments in these businesses, net of retrocessional arrangements existing at that time.  The reinsurance agreement is subject to an overall limit of approximately $3.8 billion.

This transaction resulted in an after-tax charge to shareholders’ net income in the first quarter of 2013 of $507 million ($781 million pre-tax reported as follows:  $727 million in other benefits expense; $45 million in GMIB fair value loss; and $9 million in other operating expenses). The payment to Berkshire under the agreement was $2.2 billion and was funded from the sale of investment assets, tax benefits related to the transaction and available parent cash.

Because this effective exit was accomplished via a reinsurance contract, the amounts related to the reinsured GMDB and GMIB contracts cannot be netted, so the gross assets and liabilities must continue to be measured and reported.  The following disclosures provide further context to the methods and assumptions used to determine these assets and liabilities.

GMDB

The Company estimates this liability with an internal model based on the Company’s experience and future expectations over an extended period, consistent with the long-term nature of this product.  Because the product is premium deficient, the Company records increases to the reserve if it is inadequate based on the model.  Prior to the reinsurance transaction with Berkshire, any such reserve increases were recorded as a charge to shareholders’ net income.  Reserve increases after the reinsurance transaction are expected to have a corresponding increase in the recorded reinsurance recoverable, provided the increased recoverable remains within the overall Berkshire limit (including the GMIB assets).

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The Company’s dynamic hedge programs were discontinued during the first quarter of 2013 due to the Berkshire reinsurance transaction.  These hedge programs generated losses (included in other revenues) of $32 million for the six months ended June 30, 2013.

Activity in the future policy benefit reserve for the GMDB business was as follows:

	For the period ended
	June 30,		December 31,
(In millions)	2014		2013
Balance at January 1	$	1,396	$	1,090
Add: Unpaid claims	18		24
Less: Reinsurance and other amounts recoverable	1,317		42
Balance at January 1, net	97		1,072
Add: Incurred benefits	2		699
Less: Paid benefits (including the $1,647 payment in 2013 for the Berkshire reinsurance transaction)	-		1,674
Ending balance, net	99		97
Less: Unpaid claims	19		18
Add: Reinsurance and other amounts recoverable	1,234		1,317
Ending balance	$	1,314	$	1,396

Benefits paid and incurred are net of ceded amounts.  The ending net retained reserve is to cover ongoing administrative expenses, as well as claims retained by the Company.

The death benefit coverage in force for GMDB contracts assumed by the Company was $2.8 billion as of June 30, 2014 and $3.0 billion as of December 31, 2013 assuming no reinsurance.  The death benefit coverage in force is the amount the Company would have to pay if all contract holders (approximately 373,000 as of June 30, 2014 and 390,000 as of December 31, 2013) died as of the specified date.  Unless the Berkshire reinsurance limit is exceeded, the Company would be reimbursed in full for these payments.  The aggregate value of the underlying mutual fund investments for these GMDB contracts was $13.8 billion as of June 30, 2014 and $14.1 billion as of December 31, 2013.

GMIB

As discussed further in Note 7, because GMIB contracts are without significant life insurance risk, they are not accounted for as insurance products.  Instead, the Company reports GMIB liabilities and assets as derivatives at fair value.  The GMIB assets are classified in other assets, including other intangibles, and the GMIB liabilities are classified in accounts payable, accrued expenses and other liabilities in the Consolidated Balance Sheet.  Disclosures related to fair value are included in Note 7 and derivatives are further described in Note 9.

GMIB assets included $401 million as of June 30, 2014 and $352 million as of December 31, 2013 from Berkshire, and were 100% secured by assets in a trust.  GMIB assets also included $462 million as of June 30, 2014 and $399 million as of December 31, 2013 from two other retrocessionaires, and 40% were secured by assets in a trust.

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Effects of Reinsurance

In the Company’s Consolidated Statements of Income, Premiums and fees were net of ceded premiums, and Total benefits and expenses were net of reinsurance recoveries, in the following amounts:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions)	2014		2013		2014		2013
Ceded premiums and fees
Individual life insurance and annuity business sold	$	44	$	45	$	89	$	91
Other	84		104		180		183
Total	$	128	$	149	$	269	$	274
Reinsurance recoveries
Individual life insurance and annuity business sold	$	69	$	94	$	168	$	182
Other	88		68		170		(194)
Total	$	157	$	162	$	338	$	(12)

As noted in the GMDB section above, recoveries for the six months ended June 30, 2013 are net of a decrease in reinsurance recoverables from a change in the growth rate assumption, due to discontinuing the hedge programs after the reinsurance transaction with Berkshire.

Reinsurance Recoverables

Components of the Company’s reinsurance recoverables are presented below:

(In millions)

Line of Business	Reinsurer(s)	June 30, 2014		December 31, 2013		Collateral and Other Terms at June 30, 2014
GMDB	Berkshire	$	1,195	$	1,276	100% secured by assets in a trust.
	Other	40		41		97% secured by assets in a trust or letter of credit.
Individual Life and Annuity (sold)	Lincoln National Life and Lincoln Life & Annuity of New York	3,855		3,905		Both companies’ ratings are sufficient to avoid triggering a contractual obligation to fully secure the outstanding balance.
Retirement Benefits Business (sold)	Prudential Retirement Insurance and Annuity	1,148		1,200		100% secured by assets in a trust.
Supplemental Benefits Business	Great American Life	344		363		100% secured by assets in a trust.
Global Health Care, Global Supplemental Benefits, Group Disability and Life	Various	444		407		Recoverables from more than 80 reinsurers used in the ordinary course of business. Balances range from less than $1 million up to $70 million, with 12% secured by assets in trusts or letters of credit.
Other run-off reinsurance	Various	106		107		89% of this balance is secured by assets in a trust.
Total reinsurance recoverables		$	7,132	$	7,299

Reserves for underlying reinsurance exposures assumed by the Company, as well as those for amounts recoverable from reinsurers and retrocessionaires for both ongoing operations and the run-off reinsurance operation, are considered appropriate as of June 30, 2014 based on current information.  The Company bears the risk of loss if its reinsurers and retrocessionaires do not meet or are unable to meet their reinsurance obligations to the Company.

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Note 6— Organizational Efficiency Plans

The Company is regularly evaluating ways to deliver its products and services more efficiently and at a lower cost.  During 2013 and 2012, the Company adopted specific plans to increase its organizational efficiency as follows.

2013 Plan.  During the fourth quarter of 2013, the Company committed to a plan to increase its organizational efficiency and reduce costs through a series of actions that includes employee headcount reductions.  As a result, the Company recognized charges in other operating expenses of $60 million pre-tax ($40 million after-tax) in the fourth quarter of 2013, primarily for severance costs.   The Company expects most of the severance to be paid by the end of 2015.

2012 Plan.  During the third quarter of 2012, in connection with the execution of its strategy, the Company committed to a series of actions to further improve its organizational alignment, operational effectiveness, and efficiency.  As a result, the Company recognized charges in other operating expenses of $77 million pre-tax ($50 million after-tax) in the third quarter of 2012 consisting primarily of severance costs.   The costs associated with this plan were substantially paid as of March 31, 2014.

Summarized below is activity for these plans for 2013 and the first half of 2014.

(In millions)		Severance		Real estate		Total
Balance, January 1, 2013	$	67	$	4	$	71
Fourth quarter 2013 charge		47		13		60
Less: 2013 Payments		46		4		50
Balance, December 31, 2013		68		13		81
Less: First quarter 2014 payments		11		1		12
Less: Second quarter 2014 payments		7		1		8
Balance, June 30, 2014	$	50	$	11	$	61

Note 7 — Fair Value Measurements

The Company carries certain financial instruments at fair value in the financial statements including fixed maturities, equity securities, short-term investments and derivatives.  Other financial instruments are measured at fair value under certain conditions, such as when impaired.

Fair value is defined as the price at which an asset could be exchanged in an orderly transaction between market participants at the balance sheet date.  A liability’s fair value is defined as the amount that would be paid to transfer the liability to a market participant, not the amount that would be paid to settle the liability with the creditor.

The Company’s financial assets and liabilities carried at fair value have been classified based upon a hierarchy defined by GAAP.  The hierarchy gives the highest ranking to fair values determined using unadjusted quoted prices in active markets for identical assets and liabilities (Level 1) and the lowest ranking to fair values determined using methodologies and models with unobservable inputs (Level 3).  An asset’s or a liability’s classification is based on the lowest level of input that is significant to its measurement.  For example, a financial asset or liability carried at fair value would be classified in Level 3 if unobservable inputs were significant to the instrument’s fair value, even though the measurement may be derived using inputs that are both observable (Levels 1 and 2) and unobservable (Level 3).

The Company estimates fair values using prices from third parties or internal pricing methods.  Fair value estimates received from third-party pricing services are based on reported trade activity and quoted market prices when available, and other market information that a market participant may use to estimate fair value.  The internal pricing methods are performed by the Company’s investment professionals and generally involve using discounted cash flow analyses, incorporating current market inputs for similar financial instruments with comparable terms and credit quality, as well as other qualitative factors.  In instances where there is little or no market activity for the same or similar instruments, fair value is estimated using methods, models and assumptions that the Company believes a hypothetical market participant would use to determine a current transaction price.  These valuation techniques involve some level of estimation and judgment that becomes significant with increasingly complex instruments or pricing models.

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The Company is responsible for determining fair value, as well as the appropriate level within the fair value hierarchy, based on the significance of unobservable inputs.  The Company reviews methodologies, processes and controls of third-party pricing services and compares prices on a test basis to those obtained from other external pricing sources or internal estimates.  The Company performs ongoing analyses of both prices received from third-party pricing services and those developed internally to determine that they represent appropriate estimates of fair value.  The controls completed by the Company and third-party pricing services include reviewing to ensure that prices do not become stale and whether changes from prior valuations are reasonable or require additional review.  The Company also performs sample testing of sales values to confirm the accuracy of prior fair value estimates.  Exceptions identified during these processes indicate that adjustments to prices are infrequent and do not significantly impact valuations.

Financial Assets and Financial Liabilities Carried at Fair Value

The following tables provide information as of June 30, 2014 and December 31, 2013 about the Company’s financial assets and liabilities carried at fair value.  Separate account assets that are also recorded at fair value on the Company’s Consolidated Balance Sheets are reported separately under the heading “Separate account assets” as gains and losses related to these assets generally accrue directly to policyholders.

June 30, 2014 (In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Financial assets at fair value:
Fixed maturities:
Federal government and agency	$	583	$	669	$	-	$	1,252
State and local government	-		2,023		-		2,023
Foreign government	-		1,677		29		1,706
Corporate	-		11,897		500		12,397
Federal agency mortgage-backed	-		69		-		69
Other mortgage-backed	-		77		1		78
Other asset-backed	-		252		544		796
Total fixed maturities (1)	583		16,664		1,074		18,321
Equity securities	1		82		48		131
Subtotal	584		16,746		1,122		18,452
Short-term investments	-		232		-		232
GMIB assets (2)	-		-		863		863
Other derivative assets (3)	-		2		-		2
Total financial assets at fair value, excluding separate accounts	$	584	$	16,980	$	1,985	$	19,549
Financial liabilities at fair value:
GMIB liabilities	$	-	$	-	$	839	$	839
Other derivative liabilities (3)	-		17		-		17
Total financial liabilities at fair value	$	-	$	17	$	839	$	856

(1)	Fixed maturities included $690 million of net appreciation required to adjust future policy benefits for the run-off settlement annuity business including $78 million of appreciation for securities classified in Level 3.
(2)	The GMIB assets represent retrocessional contracts in place from three external reinsurers that cover the exposures on these contracts. See Note 5 for additional information.
(3)	Other derivative assets and other derivative liabilities reflected foreign currency and interest rate swaps qualifying as cash flow hedges. See Note 9 for additional information.

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December 31, 2013 (In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Financial assets at fair value:
Fixed maturities:
Federal government and agency	$	297	$	583	$	-	$	880
State and local government	-		2,144		-		2,144
Foreign government	-		1,421		23		1,444
Corporate	-		10,476		505		10,981
Federal agency mortgage-backed	-		76		-		76
Other mortgage-backed	-		76		1		77
Other asset-backed	-		282		602		884
Total fixed maturities (1)	297		15,058		1,131		16,486
Equity securities	8		74		59		141
Subtotal	305		15,132		1,190		16,627
Short-term investments	-		631		-		631
GMIB assets (2)	-		-		751		751
Other derivative assets (3)	-		3		-		3
Total financial assets at fair value, excluding separate accounts	$	305	$	15,766	$	1,941	$	18,012
Financial liabilities at fair value:
GMIB liabilities	$	-	$	-	$	741	$	741
Other derivative liabilities (3)	-		16		-		16
Total financial liabilities at fair value	$	-	$	16	$	741	$	757

(1)	Fixed maturities included $458 million of net appreciation required to adjust future policy benefits for the run-off settlement annuity business including $60 million of appreciation for securities classified in Level 3.
(2)	The GMIB assets represented retrocessional contracts in place from three external reinsurers that cover the exposures on these contracts. See Note 5 for additional information.
(3)	Other derivative assets reflected interest rate and foreign currency swaps qualifying as cash flow hedges. Other derivative liabilities included $15 million of interest rate and foreign currency swaps qualifying as cash flow hedges and $1 million of interest rate and foreign currency swaps not designated as accounting hedges. See Note 9 for additional information.

Level 1 Financial Assets

Inputs for instruments classified in Level 1 include unadjusted quoted prices for identical assets in active markets accessible at the measurement date.  Active markets provide pricing data for trades occurring at least weekly and include exchanges and dealer markets.

Assets in Level 1 include actively-traded U.S. government bonds and exchange-listed equity securities.  Given the narrow definition of Level 1 and the Company’s investment asset strategy to maximize investment returns, a relatively small portion of the Company’s investment assets are classified in this category.

Level 2 Financial Assets and Financial Liabilities

Inputs for instruments classified in Level 2 include quoted prices for similar assets or liabilities in active markets, quoted prices from those willing to trade in markets that are not active, or other inputs that are market observable or can be corroborated by market data for the term of the instrument.  Such other inputs include market interest rates and volatilities, spreads and yield curves. An instrument is classified in Level 2 if the Company determines that unobservable inputs are insignificant.

Fixed maturities and equity securities.Approximately 91% of the Company’s investments in fixed maturities and equity securities are classified in Level 2 including most public and private corporate debt and equity securities, federal agency and municipal bonds, non-government mortgage-backed securities and preferred stocks.  Because many fixed maturities do not trade daily, third-party pricing services and internal methods often use recent trades of securities with similar features and characteristics. When recent trades are not available, pricing models are used to determine these prices.  These models calculate fair values by discounting future cash flows at estimated market interest rates.  Such market rates are derived by calculating the appropriate spreads over comparable U.S. Treasury securities, based on the credit quality, industry and structure of the asset.  Typical inputs and assumptions to pricing models include, but are not limited to, a combination of benchmark yields, reported trades, issuer spreads, liquidity, benchmark securities, bids, offers, reference data, and industry and economic events.  For mortgage-backed securities, inputs and assumptions may also

16

include characteristics of the issuer, collateral attributes, prepayment speeds and credit rating.

Nearly all of these instruments are valued using recent trades or pricing models.  Less than 1% of the fair value of investments classified in Level 2 represent foreign bonds that are valued using a single unadjusted market-observable input derived by averaging multiple broker-dealer quotes, consistent with local market practice.

Short-term investments are carried at fair value which approximates cost.  On a regular basis the Company compares market prices for these securities to recorded amounts to validate that current carrying amounts approximate exit prices.  The short-term nature of the investments and corroboration of the reported amounts over the holding period support their classification in Level 2.

Other derivatives classified in Level 2 represent over-the-counter instruments such as interest rate and foreign currency swap contracts.  Fair values for these instruments are determined using market observable inputs including forward currency and interest rate curves and widely published market observable indices.  Credit risk related to the counterparty and the Company is considered when estimating the fair values of these derivatives.  However, the Company is largely protected by collateral arrangements with counterparties, and determined that no adjustment for credit risk was required as of June 30, 2014 or December 31, 2013.  Level 2 also includes exchange-traded interest rate swap contracts.  Credit risk related to the clearinghouse counterparty and the Company is considered minimal when estimating the fair values of these derivatives because of upfront margin deposits and daily settlement requirements.  The nature and use of these other derivatives are described in Note 9.

Level 3 Financial Assets and Financial Liabilities

Certain inputs for instruments classified in Level 3 are unobservable (supported by little or no market activity) and significant to their resulting fair value measurement.  Unobservable inputs reflect the Company’s best estimate of what hypothetical market participants would use to determine a transaction price for the asset or liability at the reporting date.

The Company classifies certain newly issued, privately-placed, complex or illiquid securities, as well as assets and liabilities relating to GMIB, in Level 3.

Fixed maturities and equity securities.  Approximately 6% of fixed maturities and equity securities are priced using significant unobservable inputs and classified in this category, including:

	June 30,		December 31,
(In millions)	2014		2013
Other asset and mortgage-backed securities - valued using pricing models	$	545	$	603
Corporate and government fixed maturities - valued using pricing models	456		417
Corporate fixed maturities - valued at transaction price	73		111
Equity securities - valued at transaction price	48		59
Total	$	1,122	$	1,190

Fair values of other asset and mortgage-backed securities, corporate and government fixed maturities are primarily determined using pricing models that incorporate the specific characteristics of each asset and related assumptions including the investment type and structure, credit quality, industry and maturity date in comparison to current market indices, spreads and liquidity of assets with similar characteristics.  For other asset and mortgage-backed securities, inputs and assumptions for pricing may also include collateral attributes and prepayment speeds.  Recent trades in the subject security or similar securities are assessed when available, and the Company may also review published research, as well as the issuer’s financial statements, in its evaluation.  Approximately 10% of fixed maturities classified in Level 3 represent single, unadjusted, non-binding broker quotes that are not considered market observable.  Certain private equity investments and subordinated corporate fixed maturities, representing approximately 10% of securities included in Level 3, are valued at transaction price in the absence of market data indicating a change in the estimated fair values.

Quantitative Information about Unobservable Inputs

The following tables summarize the fair value and significant unobservable inputs used in pricing Level 3 securities that were developed directly by the Company as of June 30, 2014 and December 31, 2013.  The range and weighted average basis point amounts reflect the Company’s best estimates of the unobservable adjustments a market participant would make to the market observable spreads (adjustment to discount rates) used to calculate the fair values in a discounted cash flow analysis.

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Other asset and mortgage-backed securities.  The significant unobservable inputs used to value the following other asset and mortgage-backed securities are liquidity and weighting of credit spreads.  When there is limited trading activity for the security, an adjustment for liquidity is made as of the measurement date that considers current market conditions, issuer circumstances and complexity of the security structure.  An adjustment to weight credit spreads is needed to value a more complex bond structure with multiple underlying collateral and no standard market valuation technique.  The weighting of credit spreads is primarily based on the underlying collateral’s characteristics and their proportional cash flows supporting the bond obligations.  The resulting wide range of unobservable adjustments in the table below is due to the varying liquidity and quality of the underlying collateral, ranging from high credit quality to below investment grade.

Corporate and government fixed maturities.  The significant unobservable input used to value the following corporate and government fixed maturities is an adjustment for liquidity.  When there is limited trading activity for the security, an adjustment is needed to reflect current market conditions and issuer circumstances.

As of June 30, 2014 (In millions except basis points)	Fair Value		Unobservable Input	Unobservable Adjustment to Discount Rates Range (Weighted Average) in Basis Points
Other asset and mortgage-backed securities	$	537	Liquidity	40-500 (160)
			Weighting of credit spreads	130-2,650 (250)
Corporate and government fixed maturities	$	391	Liquidity	80-390 (180)

As of December 31, 2013 (In millions except basis points)	Fair Value		Unobservable Input	Unobservable Adjustment to Discount Rates Range (Weighted Average) in Basis Points
Other asset and mortgage-backed securities	$	593	Liquidity	60 - 620 (170)
			Weighting of credit spreads	120 - 2,090 (290)
Corporate and government fixed maturities	$	305	Liquidity	80 - 370 (200)

Significant increases in any of these inputs would result in a lower fair value measurement while decreases in these inputs would result in a higher fair value measurement.  Generally, the unobservable inputs are not interrelated and a change in the assumption used for one unobservable input is not accompanied by a change in the other unobservable input.  The tables do not include Level 3 securities when fair value and significant unobservable inputs were not developed directly by the Company, including securities using single, unadjusted non-binding broker quotes and securities valued at transaction price.  See the preceding discussion regarding the Company’s valuation processes and controls.

Guaranteed minimum income benefit contracts.  As discussed in Note 5, the Company effectively exited from this business in 2013.  Although these GMIB assets and liabilities must continue to be reported as derivatives at fair value, the only assumption that is expected to impact future shareholders’ net income is the risk of non-performance.  This assumption reflects a market participant’s view of (a) the risk of the Company not fulfilling its GMIB obligations (GMIB liabilities) and (b) the credit risk that the reinsurers do not pay their obligations (GMIB assets).

The Company reports GMIB liabilities and assets as derivatives at fair value because cash flows of these liabilities and assets are affected by equity markets and interest rates, but are without significant life insurance risk and are settled in lump sum payments.  Under the terms of these written and purchased contracts, the Company periodically receives and pays fees based on either contractholders’ account values or deposits increased at a contractual rate.  The Company will also pay and receive cash depending on changes in account values and interest rates when contractholders first elect to receive minimum income payments.  The Company estimates the fair value of the assets and liabilities for GMIB contracts by calculating the results for many scenarios run through a model utilizing various assumptions that include non-performance risk, among other things.

The non-performance risk adjustment is incorporated by adding an additional spread to the discount rate in the calculation of both (a) the GMIB liabilities to reflect a market participant’s view of the risk of the Company not fulfilling its GMIB obligations, and (b) the GMIB assets to reflect a market participant’s view of the credit risk of the reinsurers, after considering collateral.  Non-performance risk adjustments had an immaterial effect on shareholders’ net income for the three months and six months ended June 30, 2014 and 2013.

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Other assumptions that affect GMIB assets and liabilities include capital market assumptions (including market returns, interest rates and market volatilities of the underlying equity and bond mutual fund investments) and future annuitant behavior (including mortality, lapse, and annuity election rates).  As certain assumptions used to estimate fair values for these contracts are largely unobservable (primarily related to future annuitant behavior), the Company classifies GMIB assets and liabilities in Level 3.

The Company regularly evaluates each of the assumptions used in establishing these assets and liabilities.  Significant decreases in assumed lapse rates or spreads used to calculate non-performance risk, or increases in assumed annuity election rates would result in higher fair value measurements.  A change in one of these assumptions is not necessarily accompanied by a change in another assumption.

GMIB liabilities are reported in the Company’s Consolidated Balance Sheets in accounts payable, accrued expenses and other liabilities.  GMIB assets associated with these contracts represent net receivables in connection with reinsurance that the Company has purchased from three external reinsurers and are reported in the Company’s Consolidated Balance Sheets in other assets, including other intangibles.

Changes in Level 3 Financial Assets and Financial Liabilities Carried at Fair Value

The following tables summarize the changes in financial assets and financial liabilities classified in Level 3 for the three months and six months ended June 30, 2014 and 2013.  Separate account asset changes are reported separately under the heading “Separate account assets” as the changes in fair values of these assets accrue directly to the policyholders.  Gains and losses reported in these tables may include net changes in fair value that are attributable to both observable and unobservable inputs.

For the Three Months Ended June 30, 2014 (In millions)	Fixed Maturities & Equity Securities		GMIB Assets		GMIB Liabilities		GMIB Net
Balance at April 1, 2014	$	1,198	$	815	$	(794)	$	21
Gains (losses) included in shareholders’ net income:
GMIB fair value gain/(loss)	-		53		(53)		-
Other	2		3		(2)		1
Total gains (losses) included in shareholders’ net income	2		56		(55)		1
Gains included in other comprehensive income	9		-		-		-
Gains required to adjust future policy benefits for settlement annuities (1)	20		-		-		-
Purchases, sales and settlements:
Purchases	53		-		-		-
Sales	(91)		-		-		-
Settlements	(46)		(8)		10		2
Total purchases, sales and settlements	(84)		(8)		10		2
Transfers into/(out of) Level 3:
Transfers into Level 3	30		-		-		-
Transfers out of Level 3	(53)		-		-		-
Total transfers into/(out of) Level 3	(23)		-		-		-
Balance at June 30, 2014	$	1,122	$	863	$	(839)	$	24
Total gains (losses) included in shareholders’ net income attributable to instruments held at the reporting date	$	1	$	56	$	(55)	$	1

(1)  Amounts do not accrue to shareholders.

19

For the Three Months Ended June 30, 2013 (In millions)	Fixed Maturities & Equity Securities		GMIB Assets		GMIB Liabilities		GMIB Net
Balance at April 1, 2013	$	1,288	$	1,117	$	(1,099)	$	18
Gains (losses) included in shareholders’ net income:
GMIB fair value gain/(loss)	-		(156)		156		-
Other	4		1		-		1
Total gains (losses) included in shareholders’ net income	4		(155)		156		1
Losses included in other comprehensive income	(16)		-		-		-
Losses required to adjust future policy benefits for settlement annuities (1)	(33)		-		-		-
Purchases, sales and settlements:
Purchases	35		-		-		-
Sales	(18)		-		-		-
Settlements	(10)		(17)		21		4
Total purchases, sales and settlements	7		(17)		21		4
Transfers into/(out of) Level 3:
Transfers into Level 3	15		-		-		-
Transfers out of Level 3	(56)		-		-		-
Total transfers into/(out of) Level 3	(41)		-		-		-
Balance at June 30, 2013	$	1,209	$	945	$	(922)	$	23
Total gains (losses) included in shareholders’ net income attributable to instruments held at the reporting date	$	2	$	(155)	$	156	$	1

(1)  Amounts do not accrue to shareholders.

For the Six Months Ended June 30, 2014 (In millions)	Fixed Maturities & Equity Securities		GMIB Assets		GMIB Liabilities		GMIB Net
Balance at January 1, 2014	$	1,190	$	751	$	(741)	$	10
Gains (losses) included in shareholders’ net income:
GMIB fair value gain/(loss)	-		130		(130)		-
Other	14		2		10		12
Total gains (losses) included in shareholders’ net income	14		132		(120)		12
Gains included in other comprehensive income	17		-		-		-
Gains required to adjust future policy benefits for settlement annuities (1)	42		-		-		-
Purchases, sales and settlements:
Purchases	77		-		-		-
Sales	(115)		-		-		-
Settlements	(107)		(20)		22		2
Total purchases, sales and settlements	(145)		(20)		22		2
Transfers into/(out of) Level 3:
Transfers into Level 3	154		-		-		-
Transfers out of Level 3	(150)		-		-		-
Total transfers into/(out of) Level 3	4		-		-		-
Balance at June 30, 2014	$	1,122	$	863	$	(839)	$	24
Total gains (losses) included in shareholders’ net income attributable to instruments held at the reporting date	$	2	$	132	$	(120)	$	12

(1)  Amounts do not accrue to shareholders.

20

For the Six Months Ended June 30, 2013 (In millions)	Fixed Maturities & Equity Securities		GMIB Assets		GMIB Liabilities		GMIB Net
Balance at January 1, 2013	$	1,351	$	622	$	(1,170)	$	(548)
Gains (losses) included in shareholders’ net income:
GMIB fair value gain/(loss)	-		(205)		205		-
Other	10		2		-		2
Total gains (losses) included in shareholders’ net income	10		(203)		205		2
Losses included in other comprehensive income	(17)		-		-		-
Losses required to adjust future policy benefits for settlement annuities (1)	(38)		-		-		-
Purchases, sales and settlements:
Purchases	40		-		-		-
Sales	(30)		-		-		-
Settlements	(61)		526		43		569
Total purchases, sales and settlements	(51)		526		43		569
Transfers into/(out of) Level 3:
Transfers into Level 3	69		-		-		-
Transfers out of Level 3	(115)		-		-		-
Total transfers into/(out of) Level 3	(46)		-		-		-
Balance at June 30, 2013	$	1,209	$	945	$	(922)	$	23
Total gains (losses) included in shareholders’ net income attributable to instruments held at the reporting date	$	4	$	(203)	$	205	$	2

(1)  Amounts do not accrue to shareholders.

As noted in the tables above, total gains and losses included in shareholders’ net income are reflected in the following captions in the Consolidated Statements of Income:

·Realized investment gains (losses) and net investment income for amounts related to fixed maturities and equity securities and realized investment gains (losses) for the impact of changes in non-performance risk related to GMIB assets and liabilities beginning February 4, 2013, similar to hedge ineffectiveness; and

·GMIB fair value (gain) loss for amounts related to GMIB assets and liabilities, except for the impact of changes in non-performance risk subsequent to February 4, 2013.

In the tables above, gains and losses included in other comprehensive income are reflected in net unrealized appreciation (depreciation) on securities in the Consolidated Statements of Comprehensive Income.

Reclassifications impacting Level 3 financial instruments are reported as transfers into or out of the Level 3 category as of the beginning of the quarter in which the transfer occurs.  Therefore gains and losses in income only reflect activity for the period the instrument was classified in Level 3.

Transfers into or out of the Level 3 category occur when unobservable inputs, such as the Company’s best estimate of what a market participant would use to determine a current transaction price, become more or less significant to the fair value measurement.  For the three months and six months ended June 30, 2014 and June 30, 2013, transfers between Level 2 and Level 3 primarily reflect the change in significance of the unobservable inputs used to value certain public and private corporate bonds, principally related to liquidity of the securities and credit risk of the issuers.

Because GMIB reinsurance arrangements remain in effect at the reporting date, the Company has reflected the total gain or loss for the period as the total gain or loss included in income attributable to instruments still held at the reporting date.  However, the Company reduces the GMIB assets and liabilities resulting from these reinsurance arrangements when annuitants lapse, die, elect their benefit, or reach the age after which the right to elect their benefit expires.

21

Separate account assets

Fair values and changes in the fair values of separate account assets generally accrue directly to the policyholders and are excluded from the Company’s revenues and expenses.  As of June 30, 2014 and December 31, 2013 separate account assets were as follows:

June 30, 2014 (In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Guaranteed separate accounts (See Note 16)	$	269	$	271	$	-	$	540
Non-guaranteed separate accounts (1)	1,851		5,178		1,074		8,103
Total separate account assets	$	2,120	$	5,449	$	1,074	$	8,643

(1)  As of June 30, 2014, non-guaranteed separate accounts included $ 4.0 billion in assets supporting the Company’s pension plans, including $1,020 million classified in Level 3.

December 31, 2013 (In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Guaranteed separate accounts (See Note 16)	$	264	$	284	$	-	$	548
Non-guaranteed separate accounts (1)	1,844		4,825		1,035		7,704
Total separate account assets	$	2,108	$	5,109	$	1,035	$	8,252

(1)  As of December 31, 2013, non-guaranteed separate accounts included $3.8 billion in assets supporting the Company’s pension plans, including $983 million classified in Level 3.

Separate account assets in Level 1 primarily include exchange-listed equity securities.  Level 2 assets primarily include:

·corporate and structured bonds valued using recent trades of similar securities or pricing models that discount future cash flows at estimated market interest rates as described above; and

·actively-traded institutional and retail mutual fund investments and separate accounts priced using the daily net asset value which is the exit price.

Separate account assets classified in Level 3 include investments primarily in securities partnerships, real estate and hedge funds generally valued based on the separate account’s ownership share of the equity of the investee including changes in the fair values of its underlying investments.

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The following tables summarize the changes in separate account assets reported in Level 3 for the three and six months ended June 30, 2014 and 2013.

	Three Months Ended June 30,
(In millions)	2014		2013
Balance at April 1,	$	1,069	$	1,011
Policyholder gains (1)	23		22
Purchases, sales and settlements:
Purchases	80		57
Sales	(2)		-
Settlements	(97)		(39)
Total purchases, sales and settlements	(19)		18
Transfers into/(out of) Level 3:
Transfers into Level 3	6		-
Transfers out of Level 3	(5)		(2)
Total transfers into/(out of) Level 3	1		(2)
Balance at June 30,	$	1,074	$	1,049

(1)  Included in this amount are gains of $23 million attributable to instruments still held at June 30, 2014 and gains of $22 million attributable to instruments still held at June 30, 2013.

	Six Months Ended June 30,
(In millions)	2014		2013
Balance at January 1	$	1,035	$	1,005
Policyholder gains (1)	55		29
Purchases, sales and settlements:
Purchases	124		88
Sales	(2)		-
Settlements	(144)		(69)
Total purchases, sales and settlements	(22)		19
Transfers into/(out of) Level 3:
Transfers into Level 3	13		-
Transfers out of Level 3	(7)		(4)
Total transfers into/(out of) Level 3	6		(4)
Balance at June 30,	$	1,074	$	1,049

(1)  Included in this amount are gains of $55 million attributable to instruments still held at June 30, 2014 and gains of $29 million attributable to instruments still held at June 30, 2013.

Assets and Liabilities Measured at Fair Value under Certain Conditions

Some financial assets and liabilities are not carried at fair value each reporting period, but may be measured using fair value only under certain conditions, such as investments in real estate entities and commercial mortgage loans when they become impaired.  Impaired real estate entities and commercial mortgage loans representing less than 1% of total investments were written down to their fair values, resulting in realized investment losses of $10 million, after-tax for the six months ended June 30, 2014 and $5 million, after-tax for the six months ended June 30, 2013.

Fair Value Disclosures for Financial Instruments Not Carried at Fair Value

The following table includes the Company’s financial instruments not recorded at fair value that are subject to fair value disclosure requirements at June 30, 2014 and December 31, 2013.  Financial instruments that are carried in the Company’s Consolidated Financial Statements at amounts that approximate fair value are excluded from the following table.

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	Classification in	June 30, 2014				December 31, 2013
(In millions)	the Fair Value Hierarchy	Fair Value		Carrying Value		Fair Value		Carrying Value
Commercial mortgage loans	Level 3	$	2,321	$	2,217	$	2,338	$	2,252
Contractholder deposit funds, excluding universal life products	Level 3	$	1,130	$	1,116	$	1,081	$	1,072
Long-term debt, including current maturities, excluding capital leases	Level 2	$	5,721	$	4,984	$	5,550	$	4,997

The fair values presented in the table above have been estimated using market information when available.  The following valuation methodologies and inputs are used by the Company to determine fair value.

Commercial mortgage loans.  The Company estimates the fair value of commercial mortgage loans generally by discounting the contractual cash flows at estimated market interest rates that reflect the Company’s assessment of the credit quality of the loans.  Market interest rates are derived by calculating the appropriate spread over comparable U.S. Treasury rates, based on the property type, quality rating and average life of the loan.  The quality ratings reflect the relative risk of the loan, considering debt service coverage, the loan-to-value ratio and other factors.  Fair values of impaired mortgage loans are based on the estimated fair value of the underlying collateral generally determined using an internal discounted cash flow model.  The fair value measurements were classified in Level 3 because the cash flow models incorporate significant unobservable inputs.

Contractholder deposit funds, excluding universal life products. Generally, these funds do not have stated maturities.  Approximately 60% of these balances can be withdrawn by the customer at any time without prior notice or penalty.  The fair value for these contracts is the amount estimated to be payable to the customer as of the reporting date, which is generally the carrying value.  Most of the remaining contractholder deposit funds are reinsured by the buyers of the individual life and annuity and retirement benefits businesses.  The fair value for these contracts is determined using the fair value of these buyers’ assets supporting these reinsured contracts.  The Company had reinsurance recoverables equal to the carrying values of these reinsured contracts. These instruments were classified in Level 3 because certain inputs are unobservable (supported by little or no market activity) and significant to their resulting fair value measurement.

Long-term debt, including current maturities, excluding capital leases.  The fair value of long-term debt is based on quoted market prices for recent trades.  When quoted market prices are not available, fair value is estimated using a discounted cash flow analysis and the Company’s estimated current borrowing rate for debt of similar terms and remaining maturities.  These measurements were classified in Level 2 because the fair values are based on quoted market prices or other inputs that are market observable or can be corroborated by market data.

Fair values of off-balance-sheet financial instruments were not material as of June 30, 2014 and December 31, 2013.

Note 8 — Investments

Total Realized Investment Gains and Losses

The following total realized gains and losses on investments exclude amounts required to adjust future policy benefits for the run-off settlement annuity business:

	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2014		2013		2014		2013
Fixed maturities	$	4	$	22	$	12	$	89
Equity securities	-		1		17		4
Commercial mortgage loans	(4)		(4)		(4)		(4)
Real estate	-		-		13		-
Other investments, including derivatives	65		7		69		76
Realized investment gains before income taxes	65		26		107		165
Less income taxes	22		9		37		55
Net realized investment gains	$	43	$	17	$	70	$	110

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Included in the above realized investment gains (losses) before income taxes were asset write-downs as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions)	2014		2013		2014		2013
Credit-related (1)	$	(9)	$	(8)	$	(15)	$	(8)
Other	(1)		(8)		(1)		(8)
Total	$	(10)	$	(16)	$	(16)	$	(16)

(1) Credit-related losses include increases in valuation reserves on commercial mortgage loans and asset write-downs related to investments in real estate entities. 

Fixed Maturities and Equity Securities

The amortized cost and fair value by contractual maturity periods for fixed maturities were as follows at June 30, 2014:

	Amortized		Fair
(In millions)	Cost		Value
Due in one year or less	$	1,161	$	1,180
Due after one year through five years	5,530		5,962
Due after five years through ten years	6,285		6,701
Due after ten years	2,785		3,535
Mortgage and other asset-backed securities	837		943
Total	$	16,598	$	18,321

Actual maturities of these securities could differ from their contractual maturities used in the table above.  This could occur because issuers may have the right to call or prepay obligations, with or without penalties, or because in certain cases the Company may have the option to unilaterally extend the contractual maturity date.

Gross unrealized appreciation (depreciation) on fixed maturities by type of issuer is shown below.

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Appreciation		Depreciation		Value
(In millions)	June 30, 2014
Federal government and agency	$	914	$	338	$	-	$	1,252
State and local government	1,838		188		(3)		2,023
Foreign government	1,620		91		(5)		1,706
Corporate	11,389		1,020		(12)		12,397
Federal agency mortgage-backed	68		1		-		69
Other mortgage-backed	76		4		(2)		78
Other asset-backed	693		103		-		796
Total	$	16,598	$	1,745	$	(22)	$	18,321

(In millions)	December 31, 2013
Federal government and agency	$	640	$	242	$	(2)	$	880
State and local government	1,983		167		(6)		2,144
Foreign government	1,392		64		(12)		1,444
Corporate	10,306		749		(74)		10,981
Federal agency mortgage-backed	77		-		(1)		76
Other mortgage-backed	76		3		(2)		77
Other asset-backed	799		87		(2)		884
Total	$	15,273	$	1,312	$	(99)	$	16,486

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The above table includes investments with a fair value of $2.9 billion supporting the Company’s run-off settlement annuity business, with gross unrealized appreciation of $692 million and gross unrealized depreciation of $2 million at June 30, 2014.  Such unrealized amounts are required to support the future policy benefit liabilities of this business and, as such, are not included in accumulated other comprehensive income.  At December 31, 2013, investments supporting this business had a fair value of $2.6 billion, gross unrealized appreciation of $478 million and gross unrealized depreciation of $20 million.

Included in equity securities are hybrid investments consisting of preferred stock with call features.  These securities are carried at fair value with changes in fair value reported in other realized investment gains (losses) and dividends reported in net investment income. As of June 30, 2014, fair values of these securities were $54 million, and amortized cost was $62 million.  As of December 31, 2013, fair values of these securities were $56 million, and amortized cost was $68 million.

Sales information for available-for-sale fixed maturities and equity securities was as follows:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions)	2014			2013			2014			2013
Proceeds from sales	$	316		$	311		$	510		$	1,272
Gross gains on sales	$		3	$		23	$		25	$		83
Gross losses on sales	$	1		$	1		$	1		$	3

Review of declines in fair value.  Management reviews fixed maturities with a decline in fair value from cost for impairment based on criteria that include:

·length of time and severity of decline;

·financial health and specific near term prospects of the issuer;

·changes in the regulatory, economic or general market environment of the issuer’s industry or geographic region; and

·the Company’s intent to sell or the likelihood of a required sale prior to recovery.

As of June 30, 2014, fixed maturities with a decline in fair value from amortized cost (primarily corporate securities) were, by length of time of decline, as follows:

	June 30, 2014
	Fair		Amortized		Unrealized		Number
(Dollars in millions)	Value		Cost		Depreciation		of Issues
Fixed maturities:
One year or less:
Investment grade	$	424	$	430	$	(6)	147
Below investment grade	$	235	$	238	$	(3)	126
More than one year:
Investment grade	$	401	$	411	$	(10)	159
Below investment grade	$	34	$	37	$	(3)	17

The unrealized depreciation of investment grade fixed maturities is due primarily to increases in market yields since purchase.  Excluding hybrid investments, there were no equity securities with a fair value significantly lower than cost as of June 30, 2014.

Commercial Mortgage Loans

Mortgage loans held by the Company are made exclusively to commercial borrowers and are diversified by property type, location and borrower.  Loans are generally issued at a fixed rate of interest and are secured by high quality, primarily completed and substantially leased operating properties.

Credit quality.  The Company regularly evaluates and monitors credit risk, beginning with the initial underwriting of a mortgage loan and continuing throughout the investment holding period.  Mortgage origination professionals employ an internal credit quality rating system designed to evaluate the relative risk of the transaction at each loan’s origination that is then updated each year as part of the annual portfolio loan review.  The Company evaluates and monitors credit quality on an ongoing basis, classifying each loan as a loan in good standing, potential problem loan or problem loan.

26

Quality ratings are based on our evaluation of a number of key inputs related to the loan, including real estate market-related factors such as rental rates and vacancies, and property-specific inputs such as growth rate assumptions and lease rollover statistics.  However, the two most significant contributors to the credit quality rating are the debt service coverage and loan-to-value ratios.  The debt service coverage ratio measures the amount of property cash flow available to meet annual interest and principal payments on debt, with a ratio below 1.0 indicating that there is not enough cash flow to cover the required loan payments.  The loan-to-value ratio, commonly expressed as a percentage, compares the amount of the loan to the fair value of the underlying property collateralizing the loan.

The following tables summarize the credit risk profile of the Company’s commercial mortgage loan portfolio based on loan-to-value and debt service coverage ratios, as of June 30, 2014 and December 31, 2013:

	June 30, 2014
	Debt Service Coverage Ratio
(In millions) Loan-to-Value Ratios	1.30x or Greater			1.20x to 1.29x		1.10x to 1.19x		1.00x to 1.09x		Less than 1.00x		Total
Below 50%	$		340	$	-	$	-	$	6	$	-	$	346
50% to 59%	765			91		-		-		-		856
60% to 69%	327			-		15		-		61		403
70% to 79%	68			52		33		-		81		234
80% to 89%	6			97		-		-		58		161
90% to 100%		-		3		55		-		159		217
Total	$	1,506		$	243	$	103	$	6	$	359	$	2,217

	December 31, 2013
	Debt Service Coverage Ratio
(In millions) Loan-to-Value Ratios	1.30x or Greater		1.20x to 1.29x		1.10x to 1.19x		1.00x to 1.09x		Less than 1.00x		Total
Below 50%	$	314	$	-	$	-	$	6	$	-	$	320
50% to 59%	581		131		-		18		-		730
60% to 69%	438		16		29		-		24		507
70% to 79%	79		113		-		-		-		192
80% to 89%	65		42		34		28		143		312
90% to 100%	-		-		58		50		83		191
Total	$	1,477	$	302	$	121	$	102	$	250	$	2,252

The Company’s annual in-depth review of its commercial mortgage loan investments is the primary mechanism for identifying emerging risks in the portfolio.  The most recent review was completed by the Company’s investment professionals in the second quarter of 2014 and included an analysis of each underlying property’s most recent annual financial statements, rent rolls, operating plans, budgets, a physical inspection of the property and other pertinent factors.  Based on historical results, current leases, lease expirations and rental conditions in each market, the Company estimates the current year and future stabilized property income and fair value, and categorizes the investments as loans in good standing, potential problem loans or problem loans.  Based on property valuations and cash flows estimated as part of this review, the portfolio’s average loan-to-value ratio improved slightly to 63% at June 30, 2014 from 64% at December 31, 2013.  The portfolio’s average debt service coverage ratio was estimated to be 1.64 at June 30, 2014, a modest improvement from 1.62 at December 31, 2013.

The Company will reevaluate a loan’s credit quality between annual reviews if new property information is received or an event such as delinquency or a borrower’s request for restructure causes management to believe that the Company’s estimate of  financial performance, fair value or the risk profile of the underlying property has been impacted.

During 2013, the Company restructured its subordinate interest in two cross-collateralized pools of industrial loans totaling $31 million by extending the maturity dates and reducing the interest rates.  This modification was considered a troubled debt restructuring and the loans were classified as problem mortgage loans because the borrower was experiencing financial difficulties and an interest rate concession was granted.  No valuation reserves were required because the fair values of the underlying properties exceeded the carrying values of the outstanding loans.

27

Certain other loans were modified during the six months ended June 30, 2014 and the twelve months ended December 31, 2013.  However, these were not considered troubled debt restructures and the impact of such modifications was not material to the Company’s results of operations, financial condition or liquidity.

Potential problem mortgage loans are considered current (no payment more than 59 days past due), but exhibit certain characteristics that increase the likelihood of future default.  The characteristics management considers include, but are not limited to, the deterioration of debt service coverage below 1.0, estimated loan-to-value ratios increasing to 100% or more, downgrade in quality rating and requests from the borrower for restructuring.  In addition, loans are considered potential problems if principal or interest payments are past due by more than 30 but less than 60 days.  Problem mortgage loans are either in default by 60 days or more or have been restructured as to terms, which could include concessions on interest rate, principal payment or maturity date.  The Company monitors each problem and potential problem mortgage loan on an ongoing basis, and updates the loan categorization and quality rating when warranted.

Problem and potential problem mortgage loans, net of valuation reserves, totaled $209 million at June 30, 2014 and $158 million at December 31, 2013.  At June 30, 2014 and December 31, 2013, industrial loans located in the South Atlantic region represented the most significant concentration of problem and potential problem mortgage loans.

Impaired commercial mortgage loans.  A commercial mortgage loan is considered impaired when it is probable that the Company will not collect all amounts due (principal and interest) according to the terms of the original loan agreement. These loans are included in either problem or potential problem loans.  The Company assesses each loan individually for impairment, using the information obtained from the quality review process discussed above.  Impaired loans are carried at the lower of unpaid principal balance or the fair value of the underlying real estate.  In some cases when it is probable that the Company will not collect the interest due under the original agreements, the loan will be considered impaired but a related valuation reserve will not be recorded because the fair value of the underlying real estate is higher than the remaining carrying value of the loan.

The carrying value of the Company’s impaired commercial mortgage loans and related valuation reserves were as follows:

	June 30, 2014						December 31, 2013
(In millions)	Gross		Reserves		Net		Gross		Reserves		Net
Impaired commercial mortgage loans with valuation reserves	$	147	$	(12)	$	135	$	89	$	(8)	$	81
Impaired commercial mortgage loans with no valuation reserves	31		-		31		31		-		31
Total	$	178	$	(12)	$	166	$	120	$	(8)	$	112

The average recorded investment in impaired loans was $139 million during the six months ended June 30, 2014 and $130 million during the six months ended June 30, 2013.  Because of the risk profile of the underlying investment, the Company recognizes interest income on problem mortgage loans only when payment is actually received.  Interest income that would have been reflected in net income if interest on non-accrual commercial mortgage loans had been received in accordance with the original terms was not significant for the six months ended June 30, 2014 or 2013.  Interest income on impaired commercial mortgage loans was not significant for the six months ended June 30, 2014 or 2013.

The following table summarizes the changes in valuation reserves for commercial mortgage loans:

(In millions)	2014		2013
Reserve balance, January 1,	$	8	$	7
Increase in valuation reserves	4		4
Reserve balance, June 30,	$	12	$	11

Short-term investments and cash equivalents

Short-term investments and cash equivalents include corporate securities of $1.2 billion, federal government securities of $126 million and money market funds of $33 million as of June 30, 2014.  The Company’s short-term investments and cash equivalents as of December 31, 2013 included corporate securities of $2.2 billion, federal government securities of $323 million and money market funds of $35 million.

Note 9 — Derivative Financial Instruments

The Company uses derivative financial instruments to manage the characteristics of investment assets to meet the varying demands of the related insurance and contractholder liabilities and to hedge long-term debt.  The Company has written and purchased reinsurance

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contracts in its run-off reinsurance business that are accounted for as free standing derivatives. The Company also used derivative financial instruments to manage the equity, foreign currency, and certain interest rate risk exposures of its run-off reinsurance business until February 4, 2013 (for further information, see Note 5). For information on the Company’s accounting policy for derivative financial instruments, see Note 2 to the Financial Statements contained in the Company’s 2013 Form 10-K.  Derivatives in the Company’s separate accounts are excluded from the following discussion because associated gains and losses generally accrue directly to separate account policyholders.

Collateral and termination features. The Company routinely monitors exposure to credit risk associated with derivatives and diversifies the portfolio among approved dealers of high credit quality to minimize this risk.  As of June 30, 2014, the Company had $19 million in cash on deposit representing the upfront margin required for the Company’s centrally-cleared derivative instruments. Certain of the Company’s over-the-counter derivative instruments contain provisions requiring either the Company or the counterparty to post collateral or demand immediate payment depending on the amount of the net liability position and predefined financial strength or credit rating thresholds.  Collateral posting requirements vary by counterparty.  The net liability positions of these derivatives were not material as of June 30, 2014 or December 31, 2013.

Derivative instruments used in the Company’s investment and interest rate risk management.

The Company uses derivative financial instruments as a part of its investment strategy to manage the characteristics of investment assets (such as duration, yield, currency and liquidity) to meet the varying demands of the related insurance and contractholder liabilities (such as paying claims, investment returns and withdrawals).  Derivatives are typically used in this strategy to reduce interest rate and foreign currency risks.  The Company also uses derivative financial instruments to hedge interest rate risk on its long-term debt.

Investment Cash Flow Hedges

Purpose.  The Company uses interest rate, foreign currency, and combination (interest rate and foreign currency) swap contracts to hedge the interest and foreign currency cash flows of its fixed maturity bonds to match associated insurance liabilities.

Accounting policy.  Using cash flow hedge accounting, fair values are reported in other long-term investments or other liabilities. Changes in fair value are reported in accumulated other comprehensive income and amortized into net investment income or reported in other realized investment gains and losses as interest or principal payments are received.

Cash flows.  Under the terms of these various contracts, the Company periodically exchanges cash flows between variable and fixed interest rates and/or between two currencies for both principal and interest.  Foreign currency and combination swaps are primarily Euros, Australian dollars, Canadian dollars, Japanese yen, and British pounds, and have terms for periods of up to seven years.  Net interest cash flows are reported in operating activities.

Volume of activity.  The following table provides the notional values of these derivative instruments for the indicated periods:

	Notional Amount (In millions)
	As of		As of
Instrument	June 30, 2014		December 31, 2013
Interest rate swaps	$	44	$	45
Foreign currency swaps	111		118
Combination interest rate and foreign currency swaps	40		40
Total	$	195	$	203

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The following table provides the effect of these derivative instruments on the financial statements for the indicated periods:

Fair Value Effect on the Financial Statements(In millions)

	Other Long-Term Investments (2)				Accounts Payable, Accrued Expenses and Other Liabilities (2)				Gain (Loss) Recognized in Other Comprehensive Income (1)
	As of June 30,		As of December 31,		As of June 30,		As of December 31,		For the three months ended June 30,				For the six months ended June 30,
Instrument	2014		2013		2014		2013		2014		2013		2014		2013
Interest rate swaps	$	1	$	2	$	-	$	-	$	-	$	-	$	(1)	$	(1)
Foreign currency swaps	1		1		12		13		-		-		2		4
Combination interest rate and foreign currency swaps	-		-		5		2		(1)		10		(2)		9
Total	$	2	$	3	$	17	$	15	$	(1)	$	10	$	(1)	$	12

(1)  Other comprehensive income for foreign currency swaps excludes amounts required to adjust future policy benefits for the run-off settlement annuity business.

(2)  There were no amounts offset in the Consolidated Balance Sheets at June 30, 2014 or December 31, 2013.

For the three months and six months ended June 30, 2014 and 2013, the amounts of gains (losses) reclassified from accumulated other comprehensive income into shareholders’ net income were not material.  No amounts were excluded from the assessment of hedge effectiveness and no gains (losses) were recognized due to hedge ineffectiveness.

Interest Rate Fair Value Hedges

Purpose.  Beginning in 2014, the Company entered into centrally cleared interest rate swap contracts to convert a portion of the interest rate exposure on its long-term debt from fixed to variable rates to more closely align interest expense with interest income received on its cash equivalent and short-term investment balances.  The variable rates are benchmarked to LIBOR.

Accounting policy.  Using fair value hedge accounting, the fair values of the swap contracts are reported in other assets or other liabilities.  As the critical terms of these swaps match those of the long-term debt being hedged, the carrying value of the hedged debt is adjusted to reflect changes in its fair value driven by LIBOR.  The effects of those adjustments on other operating expense are offset by the effects of corresponding changes in the swaps’ fair value.  Interest expense includes the difference between the variable and fixed interest rates.

Cash flows.  Under the terms of these contracts, the Company provides upfront margin and settles fair value changes and net interest between variable and fixed interest rates daily with the clearinghouse.  Net interest cash flows are reported in operating activities.

Volume of activity.  As of June 30, 2014, the notional values of these derivative instruments was $675 million.

For the three months ended June 30, 2014, interest expense included gains of $7 million for changes in the swap fair value and corresponding losses of $7 million to adjust the carrying value of the hedged debt.  For the six months ended June 30, 2014, interest expense included gains of $6 million for changes in the swap fair value and corresponding losses of $6 million to adjust the carrying value of the hedged debt.

As of June 30, 2014, the effects of these derivative instruments on the Consolidated Balance Sheets were not material.

Derivative instruments associated with the Company’s run-off reinsurance business.

As explained in Note 5, the Company entered into an agreement in 2013 to effectively exit the GMIB and GMDB business.  As a result, the following disclosures related to derivative instruments associated with the GMIB and GMDB business are provided for context, including a description of the derivative accounting for the GMIB contracts.  Cash flows on derivative instruments associated with the GMIB and GMDB business are reported in operating activities.

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Guaranteed Minimum Income Benefits (GMIB)

Purpose.  The Company has written reinsurance contracts with issuers of variable annuity contracts that provide annuitants with certain guarantees of minimum income benefits resulting from the level of variable annuity account values compared with a contractually guaranteed amount (“GMIB liabilities”).  According to the contractual terms of the written reinsurance contracts, payment by the Company depends on the actual account value in the underlying mutual funds and the level of interest rates when the contractholders elect to receive minimum income payments.

The fair value effects of GMIB contracts on the financial statements are included in Note 7 and their volume of activity is included in Note 16. Further information on these contracts is also presented in Note 5.

GMDB and GMIB Hedge Programs

As a result of the reinsurance agreement with Berkshire to effectively exit the GMDB and GMIB business, the GMDB and GMIB hedge programs were terminated beginning February 4, 2013.  See Note 5 for further details regarding this business.

Note 10 — Variable Interest Entities

When the Company becomes involved with a variable interest entity and when the nature of the Company’s involvement with the entity changes, to determine if the Company is the primary beneficiary and must consolidate the entity, it evaluates:

·the structure and purpose of the entity;

·the risks and rewards created by and shared through the entity; and

·the entity’s participants’ ability to direct its activities, receive its benefits and absorb its losses.  Participants include the entity’s sponsors, equity holders, guarantors, creditors and servicers.

In the normal course of its investing activities, the Company makes passive investments in securities that are issued by variable interest entities for which the Company is not the sponsor or manager.  These investments are predominantly asset-backed securities primarily collateralized by foreign bank obligations or mortgage-backed securities.  The asset-backed securities largely represent fixed-rate debt securities issued by trusts that hold perpetual floating-rate subordinated notes issued by foreign banks.  The mortgage-backed securities represent senior interests in pools of commercial or residential mortgages created and held by special-purpose entities to provide investors with diversified exposure to these assets.  The Company owns senior securities issued by several entities and receives fixed-rate cash flows from the underlying assets in the pools.

To provide certain services to its Medicare Advantage customers, the Company contracts with independent physician associations ("IPAs") that are variable interest entities.  Physicians provide health care services to the Medicare Advantage customers and the Company provides medical management and administrative services to the IPAs.

The Company is not the primary beneficiary and does not consolidate these entities because either:

·it had no power to direct the activities that most significantly impact the entities’ economic performance; or

·it had neither the right to receive benefits nor the obligation to absorb losses that could be significant to these variable interest entities.

The Company has not provided, and does not intend to provide, financial support to these entities that it is not contractually required to provide.  The Company performs ongoing qualitative analyses of its involvement with these variable interest entities to determine if consolidation is required.  The Company’s maximum potential exposure to loss related to the investment entities is limited to the carrying amount of its investment reported in fixed maturities and equity securities, and its aggregate ownership interest is insignificant relative to the total principal amount issued by these entities.  The Company’s maximum exposure to loss related to the IPA arrangements is limited to their liability for incurred but not reported claims for the Company’s Medicare Advantage customers.  These liabilities are not material and are generally secured by deposits maintained by the IPAs.

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Note 11 — Pension and Other Postretirement Benefit Plans

The Company and certain of its subsidiaries provide pension, health care and life insurance defined benefits to eligible retired employees, spouses and other eligible dependents through various domestic and foreign plans. The effect of its foreign pension and other postretirement benefit plans is immaterial to the Company’s results of operations, liquidity and financial position. The Company froze its defined benefit postretirement medical plan in the first quarter of 2013 and its primary domestic pension plans in 2009.

In the first quarter of 2013, the Company also announced a change in the cost sharing arrangement with retirees for pharmacy subsidy payments received from the U.S. Government effective January 1, 2014, resulting in a reduced other post retirement benefit obligation of $57 million.  This reduction was recorded in accumulated other comprehensive income, net of deferred taxes, resulting in an after-tax increase to shareholders’ equity of $37 million.

For the six months ended June 30, 2014, the Company’s unrecognized actuarial losses and prior service costs (reported in accumulated other comprehensive income) decreased by $36 million pre-tax in the aggregate ($23 million after-tax) resulting in an increase in shareholders’ equity.  This change was primarily a result of normal amortization, and the settlement loss related to the non-qualified pension plan caused by lump sum payments that exceeded the expected annual interest cost.

Pension and Other Postretirement Benefits.  Components of net pension and net other postretirement benefit costs were as follows:

	Pension Benefits								Other Postretirement Benefits
	Three Months Ended				Six Months Ended				Three Months Ended				Six Months Ended
	June 30,				June 30,				June 30,				June 30,
(In millions)	2014		2013		2014		2013		2014		2013		2014		2013
Service cost	$	1	$	-	$	1	$	1	$	-	$	-	$	-	$	-
Interest cost	52		46		103		91		3		3		6		6
Expected long-term return on plan assets	(66)		(68)		(132)		(136)		-		-		-		-
Amortization of:
Net loss from past experience	15		18		29		37		-		-		-		-
Prior service cost	-		-		-		-		-		(1)		(1)		(3)
Curtailment gain	-		-		-		-		-		-		-		(19)
Settlement loss	-		-		6		-		-		-		-		-
Net cost	$	2	$	(4)	$	7	$	(7)	$	3	$	2	$	5	$	(16)

The Company funds its domestic qualified pension plans at least at the minimum amount required by the Pension Protection Act of 2006.  For the six months ended June 30, 2014, the Company made required contributions of $113 million and is not required to make additional contributions for the remainder of 2014.

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Note 12 — Debt

Short-term and long-term debt were as follows:

	June 30,		December 31,
(In millions)	2014		2013
Short-term:
Commercial paper	$	100	$	100
Current maturities of long-term debt	21		41
Other	-		92
Total short-term debt	$	121	$	233
Long-term:
Uncollateralized debt:
2.75% Notes due 2016	$	600	$	600
5.375% Notes due 2017	250		250
6.35% Notes due 2018	131		131
8.5% Notes due 2019	251		251
4.375% Notes due 2020(1)	252		249
5.125% Notes due 2020(1)	302		299
6.37% Notes due 2021	78		78
4.5% Notes due 2021(1)	300		299
4% Notes due 2022	745		744
7.65% Notes due 2023	100		100
8.3% Notes due 2023	17		17
7.875% Debentures due 2027	300		300
8.3% Step Down Notes due 2033	83		83
6.15% Notes due 2036	500		500
5.875% Notes due 2041	298		298
5.375% Notes due 2042	750		750
Other	65		65
Total long-term debt	$	5,022	$	5,014

(1) In 2014, the Company entered into interest rate swap contracts hedging a portion of these fixed-rate debt instruments. See Note 9 for further information about the Company's interest rate risk management and these derivative instruments.

The Company has a five-year revolving credit and letter of credit agreement for $1.5 billion that permits up to $500 million to be used for letters of credit.  This agreement extends through December 2017 and is diversified among 16 banks, with three banks each having 12% of the commitment and the remainder spread among 13 banks.  The credit agreement includes options that are subject to consent by the administrative agent and the committing banks, to increase the commitment amount to $2 billion and to extend the term past December 2017.  The credit agreement is available for general corporate purposes, including as a commercial paper backstop and for the issuance of letters of credit.  This agreement has certain covenants, including a financial covenant requiring the Company to maintain a total debt-to-adjusted capital ratio at or below 0.50 to 1.00.  As of June 30, 2014, the Company had $6.2 billion of borrowing capacity within the maximum debt coverage covenant in the agreement in addition to the $5.1 billion of debt outstanding.  Letters of credit outstanding as of June 30, 2014 totaled $23 million.

The Company was in compliance with its debt covenants as of June 30, 2014.

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Note 13 — Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss excludes amounts required to adjust future policy benefits for the run-off settlement annuity business and a portion of deferred acquisition costs associated with the corporate owned life insurance business.  As required by GAAP, the Company parenthetically identifies the income statement line item affected by reclassification adjustments in the table below.  Changes in the components of accumulated other comprehensive loss were as follows:

			Tax
			(Expense)		After-
(In millions)	Pre-Tax		Benefit		Tax
Three Months Ended June 30, 2014
Net unrealized appreciation, securities:
Net unrealized appreciation on securities arising during the period	$	157	$	(51)	$	106
Reclassification adjustment for (gains) included in shareholders’ net income (realized investment gains)	(4)		1		(3)
Net unrealized appreciation, securities	$	153	$	(50)	$	103
Net unrealized appreciation, derivatives	$	—	$	—	$	—
Net translation of foreign currencies	$	51	$	(5)	$	46
Postretirement benefits liability adjustment:
Reclassification adjustment for amortization of net losses from past experience and prior service costs (other operating expenses)	$	15	$	(5)	$	10
Net change due to valuation update	2		(1)		1
Net postretirement benefits liability adjustment	$	17	$	(6)	$	11
Three Months Ended June 30, 2013
Net unrealized depreciation, securities:
Net unrealized depreciation on securities arising during the period	$	(384)	$	130	$	(254)
Reclassification adjustment for (gains) included in shareholders’ net income (realized investment gains)	(23)		8		(15)
Net unrealized depreciation, securities	$	(407)	$	138	$	(269)
Net unrealized appreciation, derivatives	$	10	$	(4)	$	6
Net translation of foreign currencies	$	(23)	$	7	$	(16)
Postretirement benefits liability adjustment:
Reclassification adjustment for amortization of net losses from past experience and prior service costs (other operating expenses)	$	17	$	(6)	$	11
Net change due to valuation update	16		(6)		10
Net postretirement benefits liability adjustment	$	33	$	(12)	$	21

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			Tax
			(Expense)		After-
(In millions)	Pre-Tax		Benefit		Tax
Six Months Ended June 30, 2014
Net unrealized appreciation, securities:
Net unrealized appreciation on securities arising during the period	$	313	$	(105)	$	208
Reclassification adjustment for (gains) included in shareholders’ net income (realized investment gains)	(29)		10		(19)
Net unrealized appreciation, securities	$	284	$	(95)	$	189
Net unrealized appreciation, derivatives	$	-	$	-	$	-
Net translation of foreign currencies	$	38	$	(3)	$	35
Postretirement benefits liability adjustment:
Reclassification adjustment for amortization of net losses from past experience and prior service costs (other operating expenses)	$	28	$	(10)	$	18
Reclassification adjustment for settlement (other operating expenses)	6		(2)		4
Total reclassification adjustments to shareholders’ net income (other operating expenses)	34		(12)		22
Net change due to valuation update	2		(1)		1
Net postretirement benefits liability adjustment	$	36	$	(13)	$	23
Six Months Ended June 30, 2013
Net unrealized depreciation, securities:
Net unrealized depreciation on securities arising during the period	$	(420)	$	142	$	(278)
Reclassification adjustment for (gains) included in shareholders’ net income (realized investment gains)	(93)		32		(61)
Net unrealized depreciation, securities	$	(513)	$	174	$	(339)
Net unrealized appreciation, derivatives	$	14	$	(5)	$	9
Net translation of foreign currencies	$	(92)	$	18	$	(74)
Postretirement benefits liability adjustment:
Reclassification adjustment for amortization of net losses from past experience and prior service costs (other operating expenses)	$	34	$	(12)	$	22
Reclassification adjustment for curtailment (other operating expenses)	(19)		7		(12)
Total reclassification adjustments to shareholders’ net income (other operating expenses)	15		(5)		10
Net change due to valuation update and plan amendments	79		(28)		51
Net postretirement benefits liability adjustment	$	94	$	(33)	$	61

Note 14 — Income Taxes

A.  Income Tax Expense

The Company indefinitely reinvests the undistributed earnings of certain foreign operations.  As a result, income taxes are provided on the earnings of these operations using the respective foreign jurisdictions’ tax rate, as compared to the higher U.S. statutory tax rate.  The indefinite reinvestment of foreign operation earnings resulted in an increase to shareholders’ net income of $20 million for the six months ended June 30, 2014 and 2013.  The Company has accumulated indefinitely reinvested foreign earnings of $1.2 billion and cumulative unrecognized deferred tax liabilities of $194 million through June 30, 2014.  The Company continues to evaluate the indefinite reinvestment of earnings for additional foreign jurisdictions.

The consolidated effective tax rate of 37.2% for the six months ended June 30, 2014 has increased from historical levels because the health insurance industry fee accrued beginning in 2014 is not tax deductible.

B.  Unrecognized Tax Benefits

Changes in unrecognized tax benefits were immaterial for the six months ended June 30, 2014.

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C.  Other Tax Matters

In 2013, the IRS completed their examination of the Company’s 2009 and 2010 tax years resulting in two issues that could not be resolved at the examination level.  The Company subsequently filed a formal protest challenging the IRS positions on the two disputed matters.  The IRS has since agreed to withdraw its challenge relating to one of these matters and the parties recently agreed on a resolution of the second matter.  The resolution of these matters will not materially impact shareholders’ net income.

The IRS is expected to begin their examination of the Company’s 2011 and 2012 tax years in the second half of 2014.

Note 15 — Segment Information

Effective with the first quarter of 2014, the Company has combined the results of its run-off reinsurance business with other immaterial operating segments in Other Operations.  Prior year segment information has been conformed to the current presentation.

The financial results of the Company’s businesses are reported in the following segments:

Global Health Care aggregates the Commercial and Government operating segments due to their similar economic characteristics, products and services and regulatory environment:

·The Commercial operating segment encompasses both the U.S. commercial and certain international health care businesses serving employers and their employees, other groups, and individuals.  Products and services include medical, dental, behavioral health, vision, and prescription drug benefit plans, health advocacy programs and other products and services to insured and self-insured customers.

·The Government operating segment offers Medicare Advantage and Medicare Part D plans to seniors and Medicaid plans.

Global Supplemental Benefits includes supplemental health, life and accident insurance products offered in selected international markets and in the U.S.

Group Disability and Life provides group long-term and short-term disability, group life, accident and specialty insurance products and related services.

The Company also reports results in two other categories.

Other Operations consist of:

·corporate-owned life insurance (“COLI”);

·run-off reinsurance business that is predominantly comprised of GMDB and GMIB business effectively exited through reinsurance with Berkshire in 2013;

·deferred gains recognized from the 1998 sale of the individual life insurance and annuity business and the 2004 sale of the retirement benefits business; and

·run-off settlement annuity business.

Corporate reflects amounts not allocated to other segments, such as net interest expense (defined as interest on corporate debt less net investment income on investments not supporting segment operations), interest on uncertain tax positions, certain litigation matters, intersegment eliminations, compensation cost for stock options, expense associated with its frozen pension plans and certain corporate project and overhead costs.

The Company measures the financial results of its segments using “segment earnings (loss)”, defined as shareholders’ net income (loss) excluding after-tax realized investment gains and losses.

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Summarized segment financial information was as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions)	2014		2013		2014		2013
Premiums and fees, Mail order pharmacy revenues and Other revenues
Global Health Care	$	6,726	$	6,171	$	13,272	$	12,468
Global Supplemental Benefits	729		622		1,419		1,234
Group Disability and Life	891		847		1,806		1,705
Other Operations	30		30		60		23
Corporate	(2)		(5)		(6)		(8)
Total	$	8,374	$	7,665	$	16,551	$	15,422
Shareholders’ net income
Global Health Care	$	402	$	379	$	841	$	806
Global Supplemental Benefits	61		49		114		104
Group Disability and Life	110		104		177		102
Other Operations	13		15		30		(447)
Corporate	(56)		(59)		(131)		(113)
Segment earnings	530		488		1,031		452
Realized investment gains, net of taxes	43		17		70		110
Shareholders’ net income	$	573	$	505	$	1,101	$	562

Note 16 — Contingencies and Other Matters

The Company, through its subsidiaries, is contingently liable for various guarantees provided in the ordinary course of business.

A. Financial Guarantees: Retiree and Life Insurance Benefits

Separate account assets are contractholder funds maintained in accounts with specific investment objectives.

The Company records separate account liabilities equal to separate account assets.  In certain cases, the Company guarantees a minimum level of benefits for retirement and insurance contracts written in separate accounts.  The Company establishes an additional liability if management believes that the Company will be required to make a payment under these guarantees.

The Company guarantees that separate account assets will be sufficient to pay certain retiree or life insurance benefits.  The sponsoring employers are primarily responsible for ensuring that assets are sufficient to pay these benefits and are required to maintain assets that exceed a certain percentage of benefit obligations.  This percentage varies depending on the asset class within a sponsoring employer’s portfolio (for example, a bond fund would require a lower percentage than a riskier equity fund) and thus will vary as the composition of the portfolio changes.  If employers do not maintain the required levels of separate account assets, the Company or an affiliate of the buyer of the retirement benefits business (see Note 5 for additional information) has the right to redirect the management of the related assets to provide for benefit payments.  As of June 30, 2014, employers maintained assets that exceeded the benefit obligations.  Benefit obligations under these arrangements were $500 million as of June 30, 2014 and approximately 13% of these are reinsured by an affiliate of the buyer of the retirement benefits business.  The remaining guarantees are provided by the Company with minimal reinsurance from third parties.  There were no additional liabilities required for these guarantees as of June 30, 2014.  Separate account assets supporting these guarantees are classified in Levels 1 and 2 of the GAAP fair value hierarchy.  See Note 7 for further information on the fair value hierarchy.

The Company does not expect that these financial guarantees will have a material effect on the Company’s consolidated results of operations, liquidity or financial condition.

B. Guaranteed Minimum Income Benefit Contracts

The Company has retrocessional coverage in place that covers the exposures on these contracts.  See Notes 5, 7 and 9 for further information on GMIB contracts.

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Under these guarantees, the future payment amounts are dependent on equity and bond fund market and interest rate levels prior to and at the date of annuitization election that must occur within 30 days of a policy anniversary after the appropriate waiting period.  Therefore, the future payments are not fixed and determinable under the terms of these contracts.  Accordingly, the Company’s maximum potential undiscounted future payment of $742 million, without considering any retrocessional coverage, was determined using the following hypothetical assumptions:

·no annuitants surrendered their accounts;

·all annuitants lived to elect their benefit;

·all annuitants elected to receive their benefit on the next available date (2014 through 2019); and

·all underlying mutual fund investment values remained at the June 30, 2014 value of $1.2 billion with no future returns.

The Company bears the risk of loss if its GMIB retrocessionaires do not meet or are unable to meet their reinsurance obligations to the Company.

C.  Certain Other Guarantees

The Company had indemnification obligations to lenders of up to $294 million as of June 30, 2014, related to borrowings by certain real estate joint ventures that the Company either records as an investment or consolidates.  These borrowings, that are nonrecourse to the Company, are secured by the joint ventures’ real estate properties with fair values in excess of the loan amounts and mature at various dates beginning in 2015 through 2042.  The Company’s indemnification obligations would require payment to lenders for any actual damages resulting from certain acts such as unauthorized ownership transfers, misappropriation of rental payments by others or environmental damages.  Based on initial and ongoing reviews of property management and operations, the Company does not expect that payments will be required under these indemnification obligations.  Any payments that might be required could be recovered through a refinancing or sale of the assets.  In some cases, the Company also has recourse to partners for their proportionate share of amounts paid.  There were no liabilities required for these indemnification obligations as of June 30, 2014.

As of June 30, 2014, the Company guaranteed that it would compensate the lessors for a shortfall of up to $41 million in the market value of certain leased equipment at the end of the leases.  Guarantees of $16 million expire in 2016 and $25 million expire in 2025.  The Company had liabilities for these guarantees of $6 million as of June 30, 2014.

The Company had indemnification obligations as of June 30, 2014 in connection with acquisition, disposition and reinsurance transactions.  These indemnification obligations are triggered by the breach of representations or covenants provided by the Company, such as representations for the presentation of financial statements, actuarial models, the filing of tax returns, compliance with law or the identification of outstanding litigation.  These obligations are typically subject to various time limitations, defined by the contract or by operation of law, such as statutes of limitation.  In some cases, the maximum potential amount due is subject to contractual limitations based on a percentage of the transaction purchase price, while in other cases limitations are not specified or applicable.  The Company does not believe that it is possible to determine the maximum potential amount due under these obligations, because not all amounts due under these indemnification obligations are subject to limitation.  There were no liabilities for these indemnification obligations as of June 30, 2014.

The Company does not expect that these guarantees will have a material adverse effect on the Company’s consolidated results of operations, financial condition or liquidity.

D. Guaranty Fund Assessments

The Company operates in a regulatory environment that may require the Company to participate in assessments under state insurance guaranty association laws.  The Company’s exposure to assessments for certain obligations of insolvent insurance companies to policyholders and claimants is based on its share of business written in the relevant jurisdictions.  For the six months ended June 30, 2014 and 2013, charges related to guaranty fund assessments were immaterial to the Company’s results of operations.

The Company is aware of an insurer that is in rehabilitation.  In 2012, the state court denied the regulator’s amended petitions for liquidation and set forth specific requirements and a deadline for the regulator to develop a plan of rehabilitation without liquidating the insurer.  The regulator has appealed the court’s decision.  If the actions taken in the rehabilitation plan fail to improve this insurer’s financial condition, or if the state court’s ruling is overturned on appeal, this insurer may be forced into insolvency.  In that event, the Company would be required to pay guaranty fund assessments related to this insurer.  Due to the uncertainties surrounding this matter, the Company is unable to estimate the amount of any potential guaranty fund assessments.  The Company is monitoring this situation.

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E.  Legal and Regulatory Matters

The Company is routinely involved in numerous claims, lawsuits, regulatory audits, investigations and other legal matters arising, for the most part, in the ordinary course of managing a health services business.  These actions may include benefit disputes, breach of contract claims, tort claims, provider disputes, disputes regarding reinsurance arrangements, employment and employment discrimination-related suits, employee benefit claims, wage and hour claims, privacy, intellectual property claims and real estate related disputes.  There are currently, and may be in the future, attempts to bring class action lawsuits against the industry.  The Company also is regularly engaged in IRS audits and may be subject to examinations by various state and foreign taxing authorities.  Disputed income tax matters arising from these examinations, including those resulting in litigation, are accounted for under the FASB’s guidance for uncertain tax positions.  Further information on income tax matters can be found in Note 14.

The business of administering and insuring health services programs, particularly health care and group insurance programs, is heavily regulated by federal and state laws and administrative agencies, such as state departments of insurance and the U.S. Departments of Health and Human Services, Treasury, Labor and Justice, as well as the courts.  Health care regulation and legislation in its various forms, including the implementation of the Patient Protection and Affordable Care Act, other regulatory reform initiatives, such as those relating to Medicare programs, or additional changes in existing laws or regulations or their interpretations, could have a material adverse effect on the Company’s business, results of operations and financial condition.

In addition, there is heightened review by federal and state regulators of the health care, disability and life insurance industry business and related reporting practices.  Cigna is frequently the subject of regulatory market conduct reviews and other examinations of its business and reporting practices, audits and investigations by state insurance and health and welfare departments, state attorneys general, the Centers for Medicare and Medicaid Services (“CMS”) and the Office of Inspector General (“OIG”).  With respect to Cigna’s Medicare Advantage business, CMS and OIG perform audits to determine a health plan’s compliance with federal regulations and contractual obligations, including compliance with proper coding practices (sometimes referred to as Risk Adjustment Data Validation audits or RADV audits), that may result in retrospective adjustments to payments made to health plans.  Regulatory actions can result in assessments, civil or criminal fines or penalties or other sanctions, including loss of licensing or exclusion from participation in government programs.

Regulation, legislation and judicial decisions have resulted in changes to industry and the Company’s business practices, financial liability or other sanctions and will continue to do so in the future.

When the Company (in the course of its regular review of pending litigation and legal or regulatory matters) has determined that a material loss is reasonably possible, the matter is disclosed.  In accordance with GAAP, when litigation and regulatory matters present loss contingencies that are both probable and estimable, the Company accrues the estimated loss by a charge to income.  The amount accrued represents the Company’s best estimate of the probable loss at the time.  If only a range of estimated losses can be determined, the Company accrues an amount within the range that, in the Company’s judgment, reflects the most likely outcome; if none of the estimates within that range is a better estimate than any other amount, the Company accrues the minimum amount of the range.  In cases when the Company has accrued an estimated loss, the accrued amount may differ materially from the ultimate amount of the loss.  In many proceedings, it is inherently difficult to determine whether any loss is probable or even possible or to estimate the amount or range of any loss.  The Company provides disclosure in the aggregate for material pending litigation and legal or regulatory matters, including accruals, range of loss, or a statement that such information cannot be estimated.  As a litigation or regulatory matter develops, the Company monitors the matter for further developments that could affect the amount previously accrued, if any, and updates such amount accrued or disclosures previously provided as appropriate.

The outcome of litigation and other legal or regulatory matters is always uncertain, and unfavorable outcomes that are not justified by the evidence or existing law can occur.  The Company believes that it has valid defenses to the matters pending against it and is defending itself vigorously.  Except as otherwise noted, the Company believes that the legal actions, regulatory matters, proceedings and investigations currently pending against it should not have a material adverse effect on the Company’s results of operation, financial condition or liquidity based upon current knowledge and taking into consideration current accruals.  The Company had pre-tax reserves as of June 30, 2014 of $189 million ($123 million after-tax) for the matters discussed below.  Due to numerous uncertain factors presented in these cases, it is not possible to estimate an aggregate range of loss (if any) for these matters at this time. In light of the uncertainties involved in these matters, there is no assurance that their ultimate resolution will not exceed the amounts currently accrued by the Company.  An adverse outcome in one or more of these matters could be material to the Company’s results of operations, financial condition or liquidity for any particular period.

Litigation Matters

Amara cash balance pension plan litigation.  On December 18, 2001, Janice Amara filed a class action lawsuit, captioned Janice C. Amara, Gisela R. Broderick, Annette S. Glanz, individually and on behalf of all others similarly situated v. Cigna Corporation and

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Cigna Pension Plan, in the U.S. District Court for the District of Connecticut against Cigna Corporation and the Cigna Pension Plan (the “Plan”) on behalf of herself and other similarly situated participants in the Cigna Pension Plan affected by the 1998 conversion to a cash balance formula.  The plaintiffs allege various ERISA violations including, among other things, that the Plan’s cash balance formula discriminates against older employees; that the conversion resulted in a wear-away period (when the pre-conversion accrued benefit exceeded the post-conversion benefit); and that the Plan description contained inaccurate or inadequate disclosure about these conditions.

In 2008, the District Court found in favor of the plaintiffs on the disclosure claim only, and ordered payment of enhanced benefits, requiring that class members receive pre-1998 benefits under the pre-conversion traditional formula and post-1997 accrued benefits under the post-conversion cash balance formula.  The U.S. Court of Appeals for the Second Circuit affirmed the decision on all issues, following which the U.S. Supreme Court granted the Company’s petition to review the case.  In May 2011, the Supreme Court held that the District Court erred in ordering enhanced benefits under a section of ERISA that allows recovery of plan benefits only, and directed that the District Court consider alternate remedies under a different section of ERISA that allows for “appropriate equitable relief.”  In December 2012, the District Court interpreted the Supreme Court’s opinion and ordered the Company to reform the Plan to pay substantially the same benefits as had been ordered in 2008.  In addition, the District Court denied the Company’s motion to decertify the class.  Both parties appealed, and the Second Circuit heard oral arguments in February 2014.  The Company will continue to vigorously defend its position in this case.

Ingenix. In April 2004, the Company was named as a defendant in a number of putative nationwide class actions alleging that the Company improperly underpaid claims for out-of-network providers through the use of data provided by Ingenix, Inc., a subsidiary of one of the Company’s competitors.  These actions were consolidated into Franco v. Connecticut General Life Insurance Company et al., pending in the U.S. District Court for the District of New Jersey.  The consolidated amended complaint, filed on August 7, 2009, asserted claims related to benefits and disclosure under ERISA, the Racketeer Influenced and Corrupt Organizations (“RICO”) Act, the Sherman Antitrust Act and New Jersey state law on behalf of subscribers, health care providers and various medical associations and seeks recovery for alleged underpayments from 1998 through the present.  Other major health insurers have been the subject of, or have settled, similar litigation.

In September 2011, the District Court dismissed all claims by the health care provider and medical association plaintiffs for lack of standing. In addition, the District Court dismissed the antitrust claims, the New Jersey state law claims and the disclosure claim under ERISA.  In January 2013 and again in April 2014, the District Court denied separate motions by the plaintiffs to certify a nationwide class of subscriber plaintiffs.  The U.S. Court of Appeals for the Third Circuit denied plaintiff’s request for an immediate appeal of the January 2013 ruling.  As a result, the case is proceeding on behalf of the named plaintiffs only.  On June 24, 2014, the District Court granted the Company’s motion for summary judgment, terminating all claims, and denied the plaintiffs’ partial motion for summary judgment.  On July 24, 2014, the plaintiffs filed a notice of appeal of the District Court’s decision to the Third Circuit.  The Company will continue to vigorously defend its position in this case.

In addition, the Company and other health insurers were subject to an investigation in 2008 by the New York State Attorney General related to similar issues.  The industry-wide resolution included the Company’s $10 million contribution to a non-profit organization that manages the data formerly provided by Ingenix.

Regulatory Matters

Disability claims regulatory matter.  During the second quarter of 2013, the Company finalized an agreement with the Departments of Insurance for Maine, Massachusetts, Pennsylvania, Connecticut and California (together, the “monitoring states”) related to an examination of the Company’s long-term disability claims handling practices.  The agreement requires, among other things: (1) enhanced claims handling procedures related to documentation and disposition; (2) monitoring the Company’s implementation of these procedures during a two-year period following the execution date of the agreement; and (3) a reassessment of claims denied or closed during a two-year prior period, except California for which the reassessment period is three years.

In connection with the terms of the agreement, the Company recorded a charge of $77 million before-tax ($51 million after-tax) in the first quarter of 2013.  The charge was comprised of two elements: (1) $48 million of benefit costs and reserves from reassessed claims expected to be reopened, and (2) $29 million in additional costs for open claims as a result of the claims handling changes being implemented.  The Company is actively implementing the terms of the agreement and continues to communicate with the monitoring states on progress.  If the monitoring states find material non-compliance with the agreement upon re-examination, the Company may be subject to additional costs and penalties.  Most other jurisdictions have joined the agreement as participating, non-monitoring states.

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Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations

INDEX

Cautionary Statement	41
Overview	42
Consolidated Results of Operations	46
Liquidity and Capital Resources	48
Critical Accounting Estimates	50
Segment Reporting	51
Global Health Care	52
Global Supplemental Benefits	55
Group Disability and Life	57
Other Operations	58
Corporate	59
Investment Assets	60
Market Risk	63

Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to provide information to assist you in better understanding and evaluating our financial condition as of June 30, 2014 compared with December 31, 2013 and our results of operations for the three months and six months ended June 30, 2014 compared with the same periods last year.  We encourage you to read this MD&A in conjunction with our Consolidated Financial Statements included in Part I, Item 1 of this Form 10-Q and our Annual Report on Form 10-K for the year ended December 31, 2013 (“2013 Form 10-K”), including, in particular, the “Risk Factors” contained in Part I, Item 1A of that report.

Unless otherwise indicated, financial information in the MD&A is presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”).  See Note 2 to the Consolidated Financial Statements in the 2013 Form 10-K for additional information regarding our significant accounting policies.  The preparation of interim consolidated financial statements necessarily relies heavily on estimates.  This and certain other factors, such as the seasonal nature of portions of the health care and related benefits business, as well as competitive and other market conditions, call for caution in estimating full year results based on interim results of operations.  In some of our financial tables in this MD&A, we present percentage changes or “N/M” when those changes are so large as to become not meaningful.

We measure the financial results of our segments using “segment earnings (loss)”, defined as shareholders’ net income (loss) before after-tax realized investment results.  In this MD&A, we also present information using adjusted income from operations on both a consolidated and segment basis.  Adjusted income (loss) from operations is another measure of profitability used by our management because it presents the underlying results of operations of our businesses and permits analysis of trends in underlying revenue, expenses and shareholders’ net income. Adjusted income (loss) from operations is defined as segment earnings (loss) excluding special items (described in the table on page 46 of this Form 10-Q) and the results of the GMIB business.  This measure is not determined in accordance with GAAP and should not be viewed as a substitute for the most directly comparable GAAP measures, which are shareholders’ net income on a consolidated basis and segment earnings (loss) on a segment basis.  We exclude special items because management does not believe they are representative of our underlying results of operations.  We also exclude the results of the GMIB business because, prior to February 4, 2013, the changes in the fair value of GMIB assets and liabilities were volatile and unpredictable.

Cautionary Note Regarding Forward-Looking Statements

This report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements are based on Cigna’s current expectations and projections about future trends, events and uncertainties.  These statements are not historical facts.  Forward-looking statements may include, among others, statements concerning our business strategy and strategic or operational initiatives, including our ability to deliver improved health services outcomes and productivity for our customers and clients while lowering the costs of health care; future growth and expansion; future financial or operating performance; economic, regulatory or competitive environments; and our projected cash position, future pension funding and financing or capital deployment plans.  You may identify forward-looking statements by the use of words such as “believe,” “expect,” “plan,” “intend,” “anticipate,” “estimate,” “predict,” “potential,” “may,” “should,” “will” or other words or expressions of similar meaning, although not all forward-looking statements contain such terms.

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Forward-looking statements are subject to both known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied in forward-looking statements.  Such risks and uncertainties include, but are not limited to: our ability to achieve our financial, strategic and operational plans or initiatives; our ability to predict and manage medical costs and price effectively and develop and maintain good relationships with physicians, hospitals and other health care providers; our ability to realize the expected benefits of strategic transactions and/or acquisitions; the substantial level of government regulation over our business and the potential effects of new laws or regulations or changes in existing laws or regulations; the outcome of litigation, regulatory audits, investigations and actions and/or guaranty fund assessments; uncertainties surrounding participation in government-sponsored programs such as Medicare; and unfavorable industry, economic or political conditions, as well as more specific risks and uncertainties discussed in this MD&A, the “Risk Factors” contained in this Form 10-Q and Part I, Item 1A of our 2013 Form 10-K, and as described from time to time in our future reports filed with the Securities and Exchange Commission.  You should not place undue reliance on forward-looking statements, that speak only as of the date they are made, are not guarantees of future performance or results, and are subject to risks, uncertainties and assumptions that are difficult to predict or quantify.  Cigna undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by law.

OVERVIEW

We are a global health services organization with a mission to help our customers improve their health, well-being and sense of security.  Our insurance subsidiaries are major providers of medical, dental, disability, life and accident insurance and related products and services, the majority of which are offered through employers and other groups (e.g., governmental and non-governmental organizations, unions and associations).  We also offer Medicare and Medicaid products and health, life and accident insurance coverage primarily to individuals in selected international markets and the United States.  In addition to these businesses, we also have certain run-off operations.

For further information on our business and strategy, please see Item 1, “Business” in our 2013 Form 10-K.

Our Segments

As explained in Note 15 to the Consolidated Financial Statements, effective with the first quarter of 2014, we began combining the results of our run-off reinsurance business with other immaterial operating segments in Other Operations for segment reporting purposes.  Prior year segment information has been conformed to the current year presentation.

We present the financial results of our businesses in the following three reportable segments:

Segment	% of Revenues	Description
Global Health Care	78%	Aggregates the Commercial and Government operating segments: Commercial ·Encompasses both our U.S. commercial and certain international health care businesses. ·Serves employers and their employees, including globally mobile individuals, and other groups (e.g., governmental and non-governmental organizations, unions and associations).  In addition, our U.S. commercial health care business also serves individuals. ·Offers insured and self-insured medical, dental, behavioral health, vision, and prescription drug benefit plans, health advocacy programs and other products and services that may be integrated as part of a comprehensive global health care benefit program. Government ·Offers Medicare Advantage, Medicare Part D and Medicaid plans.
Global Supplemental Benefits	9%	This segment offers supplemental health, life and accident insurance products in selected international markets and the U.S.
Group Disabilityand Life	11%	This segment offers group long-term and short-term disability, group life, accident and specialty insurance products and related services.

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We present the remainder of our segment results in Other Operations, consisting of the corporate-owned life insurance business (“COLI”), run-off reinsurance and settlement annuity businesses and deferred gains associated with the sales of the individual life insurance and annuity and retirement benefits businesses.

Key Transactions and Other Significant Items

The following is a summary of key transactions and other significant items since January 1, 2013 affecting period-to-period comparisons of our results.

Run-off Reinsurance Transaction. Prior to February 4, 2013, our run-off reinsurance business had significant exposures, primarily from our guaranteed minimum death benefits (“GMDB” also known as “VADBe”) and guaranteed minimum income benefits (“GMIB”) businesses. Effective February 4, 2013, we entered into an agreement with Berkshire to reinsure future exposures for this business, net of existing retrocessional arrangements, up to a specified limit, for a payment of $2.2 billion. The reinsurance transaction aligned with our strategy of increasing financial flexibility by accomplishing an effective exit from the GMDB and GMIB businesses.  As a result of this transaction, we recorded an after-tax charge of $507 million in the first quarter of 2013 that was reported as a special item.  See Note 5 to the Consolidated Financial Statements and the Other Operations section of this MD&A for additional information.

Pharmacy Benefit Management (“PBM”) Services Agreement.  In June 2013, we entered into a 10-year pharmacy benefit management services agreement with Catamaran Corporation.  Under this agreement, we utilize their technology and service platforms, prescription drug procurement and inventory management capabilities, and order fulfillment services to lower costs and enhance our home-delivery pharmacy, retail network contracting and claims processing services.  In the second quarter of 2013, we recorded one-time transaction costs of $37 million pre-tax ($24 million after-tax) that were reported as a special item. This arrangement has produced a positive contribution to earnings in the first six months of 2014 through improved clinical management, purchasing and administrative efficiencies. We expect this positive earnings trend to continue for the remainder of 2014.

Organizational Efficiency Plans.  We regularly evaluate ways to deliver our products and services more efficiently and at a lower cost.  During 2013 and 2012, we adopted specific plans to increase our organizational efficiency as follows:

· 2013 plan.  During the fourth quarter of 2013, we committed to a plan to increase our organizational efficiency and reduce costs through a series of actions that includes employee headcount reductions.  As a result, we recognized charges in other operating expenses of $60 million pre-tax ($40 million after-tax) in the fourth quarter of 2013, primarily for severance costs.  We expect most of the severance to be paid by the end of 2015.  We expect to realize annualized after-tax savings of approximately $45 million.  A substantial portion of these savings will be realized in 2014.

· 2012 plan.  During the third quarter of 2012, we committed to a series of actions to further improve our organizational alignment, operational effectiveness and efficiency.  As a result, we recognized charges in other operating expenses of $77 million pre-tax ($50 million after-tax) in the third quarter of 2012, consisting primarily of severance costs that were paid as of March 31, 2014.  We realized annualized after-tax savings of approximately $60 million during 2013, the majority of which was reinvested in the business to enhance our ability to provide superior service and affordable products to our customers.

Disability Claims Regulatory Matter

During the second quarter of 2013, we finalized an agreement with the Departments of Insurance for Maine, Massachusetts, Pennsylvania, Connecticut and California (together, the “monitoring states”) related to our long-term disability claims handling practices.  In connection with the terms of the agreement, the Company recorded a charge of $77 million before-tax ($51 million after-tax) in the first quarter of 2013.  The charge was comprised of two elements:  (1) $48 million of benefit costs and reserves from reassessed claims expected to be reopened, and (2) $29 million in additional costs for open claims as a result of the claims handling changes being implemented.  This charge was reported in the Group Disability and Life segment.  We are actively implementing the terms of the agreement and continue to communicate with the monitoring states on progress.  If the monitoring states find material non-compliance with the terms of the agreement upon re-examination, we may be subject to additional fines or penalties.  In addition to the monitoring states, most other jurisdictions have joined the agreement as participating, non-monitoring states.

Health Care Industry Developments

Health Care Reform and other regulatory initiatives have resulted in broad changes that are meaningfully impacting the industry, including, but not limited to, relationships with customers and health care providers, the design of products and services, pricing and delivery systems.  In 2013, the industry saw government-prescribed reductions to Medicare reimbursement rates (i.e., sequestration), ongoing payment reductions for Medicare Advantage plans by the Centers for Medicare and Medicaid Services (“CMS”) and changes

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in requirements associated with operational and performance metrics used to determine Medicare Advantage payments and benefits.  For 2014, there are further changes resulting from these regulatory initiatives including the advent of public exchanges, the non-tax deductible industry fee in addition to other fees and assessments, and the minimum medical loss ratio requirements for Medicare Advantage and Medicare Part D plans.  Collectively, these changes have had a significant impact on our business and customers, requiring adjustments to our business model to mitigate the effects on our results of operations and cash flows.

Our 2013 Form 10-K provides a detailed description of Health Care Reform provisions and other legislative initiatives that impact our health care business, including regulations issued by CMS, and the U.S. Department of Health and Human Services (“HHS”).  The table presented below provides an update of the impact of these items as of June 30, 2014.

Item

Description

Medicare Advantage (“MA”) and Part D Program Impacts -Sequestration -MA Rates -Medical Loss Ratio (MA and Part D)

Sequestration:  As a result of sequestration, federal government reimbursement rates for MA and Part D were lowered by 2% beginning April 1, 2013. This program is expected to run through 2023.  The overall effect on consolidated net income and cash flows was immaterial in 2013 and is expected to continue to be immaterial. MA Rates: The 2014 federal government reimbursement rates established by CMS in April 2013 became effective January 1, 2014 and included a variety of payment reductions to Medicare plans. Overall, these rates were reduced by approximately 6% compared with 2013.  Assuming a similar book of business to 2013, we would have expected this rate decrease to lower full-year 2014 MA premiums by approximately $300 million.  Based on actual results for the six months ended June 30, 2014, overall premium decreases related to the CMS rate reductions have been partially mitigated through changes in member risk scores, customer enrollment (in total, and by county), and increases in customer premiums. These rate reductions, together with the impact of the health insurance industry fee, have negatively impacted margins for the Government operating segment for the six months ended June 30, 2014 and we expect that trend to continue for the remainder of 2014. However, we cannot reliably estimate the effect on our 2014 net income and cash flows because it will continue to depend on the impact of our benefit plan design changes instituted in 2014, and our ability to manage medical and administrative costs. In April 2014, CMS published its notice of final federal government reimbursement rates for calendar year 2015.  During the second quarter of 2014, we completed our submission of 2015 MA bids to CMS, reflecting these rates and adjusting our programs and services accordingly.  Due to the timing of CMS approval of MA bids and the annual enrollment period, and the resulting impact on enrollment in total and by county, we cannot reliably estimate the impact of the 2015 rates on our revenues, results of operations, or cash flows in 2015 and beyond. Medical Loss Ratio (“MLR”): Beginning in 2014, if our MLR for MA or Part D business is less than the required 85% minimum, we will be required to pay a rebate to CMS.  For full-year 2014, we currently do not expect to pay a rebate for our MA and Part D plan offerings under these MLR requirements.

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Health Care Reform Fees -Industry Fee	Health Insurance Industry Fee:  See Note 2 to the Consolidated Financial Statements for additional information.  We recognized $122 million in operating expenses for the six months ended June 30, 2014 and now expect the full-year fee to approximate $245 million. Because the fee is not tax deductible, our effective tax rate increased in 2014, both on a consolidated basis and for the Global Health Care segment. Approximately $140 million of the fee relates to our commercial business and $105 million to our Medicare business.  For our commercial business, we expect to recover substantially all of the fee through rate increases. For our Medicare business, although we expect to partially mitigate the effect of the fee through benefit changes and price increases, we cannot reliably estimate the effect on our 2014 results of operations or cash flows because it will depend on the impact of our benefit plan design changes instituted in 2014, and our ability to manage medical and administrative costs.  See the Consolidated Results of Operations and Global Health Care segment sections of this MD&A for further discussion.
-Reinsurance Fee	Reinsurance Fee:  This fee is a fixed dollar per customer levy that applies to both insured and self-insured major medical plans. Proceeds from the fee will be used to fund the reinsurance program for non-grandfathered individual business sold either on or off the public exchanges beginning in 2014.  For our self-insured business, the fee is the responsibility of the employer group.  We currently do not administer reinsurance fee contributions on behalf of our self-insured employer clients.  For our insured business, the amount of the fee is approximately $110 million in 2014 and is tax deductible. We recorded approximately $54 million of the reinsurance fee for the six months ended June 30, 2014.  We expect to recover substantially all of the 2014 fee through rate increases.  See the Global Health Care section of this MD&A.
Public Health Exchanges Risk Mitigation Programs -Reinsurance -Risk Adjustment -Risk Corridor	Public Health Exchanges: Beginning in 2014, we are offering coverage on five public health insurance exchanges (Arizona, Colorado, Florida, Tennessee and Texas).  See the Global Health Care segment section of this MD&A for further discussion around the results from our individual business. Risk Mitigation Programs:  See Note 2 to the Consolidated Financial Statements for a description of each of these programs that commenced on January 1, 2014 along with our accounting policy.  We recorded recoveries of approximately $50 million after-tax for the three months and approximately $60 million after-tax for the six months ended June 30, 2014 related to these programs.
Commercial MLR	Commercial MLR:  The effect of the commercial MLR rebate accrual was not material to our results of operations or cash flows for the three months and six months ended June 30, 2014.

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CONSOLIDATED RESULTS OF OPERATIONS

Summarized below are our results of operations on a GAAP basis:

FINANCIAL SUMMARY	Three Months Ended June 30,						Six Months Ended June 30,
(In millions)	2014		2013		% Change		2014		2013		% Change
Premiums and fees	$	7,758	$	7,172	8	%	$	15,374	$	14,486	6	%
Net investment income	294		289		2		571		576		(1)
Mail order pharmacy revenues	547		437		25		1,042		862		21
Other revenues	69		56		23		135		74		82
Total realized investment gains	65		26		150		107		165		(35)
Total revenues	8,733		7,980		9		17,229		16,163		7
Benefits and expenses	7,832		7,213		9		15,475		15,322		1
Income before taxes	901		767		17		1,754		841		109
Income taxes	329		261		26		653		276		137
Net income	572		506		13		1,101		565		95
Less: net income (loss) attributable to noncontrolling interests	(1)		1		(200)		-		3		(100)
Shareholders’ net income	$	573	$	505	13	%	$	1,101	$	562	96	%

A reconciliation of shareholders’ net income to adjusted income from operations follows:

FINANCIAL SUMMARY	Three Months Ended June 30,						Six Months Ended June 30,
(In millions)	2014		2013		% Change		2014		2013		% Change
Shareholders’ net income	$	573	$	505	13	%	$	1,101	$	562	96	%
Less: realized investment gains, net of taxes	43		17		153		70		110		(36)
Segment earnings	530		488		9		1,031		452		128	%
Less: GMIB and special items (after-tax):
Results of GMIB business	-						-		25
Transaction costs associated with PBM services agreement	-		(24)				-		(24)
Charge related to reinsurance transaction (See Note 5 to the Consolidated Financial Statements)	-		-				-		(507)
Charge for disability claims regulatory matter (See Note 16 to the Consolidated Financial Statements)	-		-				-		(51)
Adjusted income from operations	$	530	$	512	4	%	$	1,031	$	1,009	2	%
Other Key Consolidated Financial Data
Global medical customers (excluding limited benefits, in thousands)								14,247	14,112		1	%
Effective tax rate	36.5%		34.0%		250bps		37.2%		32.8%		440bps

CONSOLIDATED RESULTS OF OPERATIONS

·Revenues. Components of the revenue increase for the three months and six months ended June 30, 2014 compared with the same periods in 2013 are discussed further below:

·Premiums and Fees. The increases for the three months and six months ended June 30, 2014, compared with the same periods in 2013, reflect premium growth in each of our ongoing reporting segments: Global Health Care, Global Supplemental Benefits and Group Disability and Life.  These results are primarily attributable to rate increases to recover both medical cost trend and new fees assessed under Health Care Reform.  Business growth in certain of our market segments and products, including stop loss and specialty, combined with strong persistency also contributed to the increase.  See the Segment Reporting section of this MD&A for further discussion.

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·Net Investment Income.   For the three months and six months ended June 30, 2014, net investment income remained relatively unchanged compared with the same periods in 2013 due to asset growth, offset by lower yields.

·Mail order pharmacy revenues. The increases for the three months and six months ended June 30, 2014, compared with the same periods in 2013, were largely driven by higher volume for specialty medications (injectibles) and price increases to recover pharmacy cost trend.

·Other Revenues. The increase for the three months ended June 30, 2014, compared with the same period in 2013, was primarily driven by higher management fees from individual practice associations in our Government operating segment.  For the six months ended June 30, 2014, the increase compared with the same period in 2013 largely results from the absence of losses (of $39 million) reported in the first quarter of 2013 related to the dynamic hedge program in our run-off reinsurance business.  This program was discontinued in February 2013.

·Realized Investment Results. For the three months ended June 30, 2014, realized investment results increased, compared with the same period in 2013, primarily resulting from the sale of a joint venture real estate property and the sale of an equity interest.  For the six months ended June 30, 2014, realized investment results decreased, compared with the same period in 2013, primarily resulting from lower gains on sales of fixed maturities.  In the first quarter of 2013, we realized significant gains on sales of fixed maturities largely to fund the reinsurance transaction with Berkshire.

·Benefits and expenses.  For the three months ended June 30, 2014, benefits and expenses increased, compared with the same period in 2013, largely driven by higher medical costs, business growth and the effect of new fees assessed under Health Care Reform.  For the six months ended June 30, 2014, benefits and expenses increased slightly, compared with the same period in 2013, driven by the same factors as discussed for the three months, largely offset by the absence in 2014 of the charges recorded in the first quarter of 2013 associated with the reinsurance agreement with Berkshire ($781 million pre-tax).  See the Segment Reporting section of this MD&A for further discussion.

·Shareholders’ net income.   The increase for the three months ended June 30, 2014, compared with the same period in 2013, primarily resulted from higher adjusted income from operations and higher realized investment gains as discussed above.  For the six months ended June 30, 2014, the increase compared with the same period in 2013 is largely due to the absence in 2014 of the charges discussed above under “benefits and expenses” recorded in the first quarter of 2013.

·Adjusted income from operations.  The increase for the three months ended June 30, 2014, compared with the same period in 2013 reflects earnings growth in our Global Supplemental Benefits and Group Disability and Life segments.  The increase for the six months ended June 30, 2014, compared with the same period in 2013, reflects earnings growth in each of our ongoing reporting segments.  See the segment discussions later in this MD&A for further information.

·Effective tax rate.  The increases for the three months and six months ended June 30, 2014, compared with the same periods in 2013, were primarily driven by the non-deductible health insurance industry fee being assessed under Health Care Reform beginning in 2014.

·Global medical customers (excluding limited benefits).  We exited the limited benefits business in 2014 due to Health Care Reform.  Excluding limited benefits customers, our medical customer base increased slightly in 2014, primarily driven by continued growth in the select and individual market segments, partially offset by a decline in the national accounts segment.

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LIQUIDITY AND CAPITAL RESOURCES

Liquidity

We maintain liquidity at two levels:  the subsidiary level and the parent company level.

Liquidity requirements at the subsidiary level generally consist of:

·claim and benefit payments to policyholders; and

·operating expense requirements, primarily for employee compensation and benefits.

Our subsidiaries normally meet their operating requirements by:

·maintaining appropriate levels of cash, cash equivalents and short-term investments;

·using cash flows from operating activities;

·selling investments;

·matching investment durations to those estimated for the related insurance and contractholder liabilities; and

·borrowing from its parent company.

Liquidity requirements at the parent company level generally consist of:

·debt service and dividend payments to shareholders; and

·pension plan funding.

The parent company normally meets its liquidity requirements by:

·maintaining appropriate levels of cash, cash equivalents and short-term investments;

·collecting dividends from its subsidiaries;

·using proceeds from issuance of debt and equity securities; and

·borrowing from its subsidiaries.

Cash flows for the six months ended June 30, were as follows:

(In millions)	2014		2013
Operating activities	$	1,002	$	(723)
Investing activities	$	(832)	$	1,147
Financing activities	$	(1,007)	$	(154)

Cash flows from operating activities consist of cash receipts and disbursements for premiums and fees, mail order pharmacy, other revenues, investment income, taxes, benefits and expenses, and, prior to February 4, 2013, gains and losses recognized in connection with our GMDB and GMIB equity hedge programs.  Because certain income and expense transactions do not generate cash, and because cash transactions related to revenues and expenses may occur in periods different from when those revenues and expenses are recognized in shareholders’ net income, cash flows from operating activities can significantly differ from shareholders’ net income.

Cash flows from investing activities generally consist of net investment purchases or sales and net purchases of property and equipment including capitalized software, as well as cash used to acquire businesses.

Cash flows from financing activities are generally comprised of issuances and re-payment of debt, proceeds on the issuance of common stock resulting from stock option exercises, and stock repurchases.  In addition, the subsidiaries report net deposits and withdrawals to and from investment contract liabilities (that include universal life insurance liabilities) because such liabilities are considered financing activities with policyholders.

Operating activities

Cash flows from operating activities increased substantially for the six months ended June 30, 2014 compared with the same period in 2013 primarily due to the absence of the 2013 payments totaling $2.2 billion to Berkshire in connection with the February 4, 2013 reinsurance transaction.   Excluding payments made in connection with the Berkshire transaction, cash flows from operating activities

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for the six months ended June 30, 2014 declined by $0.5 billion, compared with the same period in 2013, primarily as a result of timing of collections related to pharmacy considerations and government reimbursements.

Investing activities

Cash flows from investing activities decreased by $2.0 billion for the six months ended June 30, 2014 compared with the same period in 2013, primarily due to higher net purchases of fixed maturities and the absence of proceeds from investment sales used in 2013 to fund the Berkshire transaction.

Financing activities

Cash used in financing activities increased for the six months ended June 30, 2014 compared with the same period in 2013 primarily reflecting $0.8 billion in higher repurchases of common stock.

We maintain a share repurchase program, authorized by the Board of Directors.  Under this program, we may repurchase shares from time to time, depending on market conditions and alternate uses of capital.  We may suspend activity under our share repurchase program from time to time and may also remove such suspensions, generally without public announcement.  We may also repurchase shares at times when we otherwise might be precluded from doing so under insider trading laws or because of self-imposed trading black-out periods by use of a Rule 10b5-1 trading plan.  Through July 31, 2014, we repurchased 13.5 million shares for $1.15 billion.  On July 23, 2014, our Board of Directors increased share repurchase authority by $500 million.  The remaining share repurchase authority as of July 31, 2014 was $662 million.

Interest Expense

Interest expense on long-term debt, short-term debt and capital leases was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2014		2013		2014		2013
Interest expense	$	65	$	68	$	132	$	135

Capital Resources

Our capital resources (primarily retained earnings and the proceeds from the issuance of debt and equity securities) provide protection for policyholders, furnish the financial strength to underwrite insurance risks and facilitate continued business growth.

Management, guided by regulatory requirements and rating agency capital guidelines, determines the amount of capital resources that we maintain.  Management allocates resources to new long-term business commitments when returns, considering the risks, look promising and when the resources available to support existing business are adequate.

We prioritize our use of capital resources to:

·provide the capital necessary to support growth and maintain or improve the financial strength ratings of subsidiaries including  pension funding obligations;

·consider acquisitions that are strategically and economically advantageous; and

·return capital to investors through share repurchase.

The availability of capital resources will be impacted by equity and credit market conditions.  Extreme volatility in credit or equity market conditions may reduce our ability to issue debt or equity securities.

Liquidity and Capital Resources Outlook

The availability of resources at the parent company level is partially dependent on dividends from our subsidiaries, most of which are subject to regulatory restrictions and rating agency capital guidelines, and partially dependent on the availability of liquidity from the issuance of debt or equity securities.

At June 30, 2014, there was approximately $325 million in cash and short-term investments available at the parent company level.   For the remainder of 2014, the parent company has combined cash obligations of approximately $230 million for interest payments

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and commercial paper maturities.  The parent company expects, based on its current cash position and current projections for subsidiary dividends, to have sufficient liquidity to meet its obligations.

Cash projections may not be realized and the demand for funds could exceed available cash if, for example:

·ongoing businesses experience unexpected shortfalls in earnings;

·regulatory restrictions or rating agency capital guidelines reduce the amount of dividends available to be distributed to the parent company from the insurance and HMO subsidiaries;

·significant disruption or volatility in the capital and credit markets reduces our ability to raise capital; or

·a substantial increase in funding over current projections is required for our pension plan.

In those cases, we expect to have the flexibility to satisfy liquidity needs through a variety of measures, including intercompany borrowings and sales of liquid investments.  The parent company may borrow up to $1.3 billion from its principal insurance subsidiaries without state approval.  As of June 30, 2014, our insurance subsidiaries had $53 million of net intercompany loans from the parent company.

In addition, we may use short-term borrowings, such as the commercial paper program, the committed revolving credit and letter of credit agreement of up to $1.5 billion subject to the maximum debt leverage covenant in its line of credit agreement.  As of June 30, 2014, we had $1.5 billion of borrowing capacity under the credit agreement, reflecting $23 million of letters of credit outstanding from the credit facility. Within the maximum debt leverage covenant in the line of credit agreement, we have an additional $6.2 billion of borrowing capacity in addition to the $5.1 billion of debt outstanding.

We maintain a capital management strategy to indefinitely reinvest the earnings of certain of our foreign operations overseas.  Indefinitely reinvested earnings are generally deployed in these countries, and other foreign jurisdictions in support of the liquidity and capital needs of our foreign operations, where possible.  As of June 30, 2014, indefinitely reinvested earnings were approximately $1.2 billion.  If repatriated, approximately $200 million of cash and cash equivalents held in these countries would be subject to a charge representing the difference between the U.S. and foreign tax rates.  This strategy does not materially limit our ability to meet our liquidity and capital needs in the United States.  Cash and cash equivalents in foreign operations are held primarily to meet local liquidity and surplus needs with excess funds generally invested in longer duration high quality securities.

Though we believe that we have adequate sources of liquidity, significant disruption or volatility in the capital and credit markets could affect our ability to access those markets for additional borrowings or increase costs associated with borrowing funds.

Guarantees and Contractual Obligations

We are contingently liable for various contractual obligations entered in the ordinary course of business.  See Note 16 to the Consolidated Financial Statements for additional information.

There is no update to the contractual obligations previously provided in our 2013 Form 10-K.

CRITICAL ACCOUNTING ESTIMATES

The preparation of Consolidated Financial Statements in accordance with GAAP requires management to make estimates and assumptions that affect reported amounts and related disclosures in the Consolidated Financial Statements.  We consider an accounting estimate to be critical if:

·it requires assumptions to be made that were uncertain at the time the estimate was made; and

·changes in the estimate or different estimates that could have been selected could have a material effect on our consolidated results of operations or financial condition.

We have discussed the development and selection of our critical accounting estimates and reviewed our disclosures presented in our 2013 Form 10-K with the Audit Committee of our Board of Directors.

Our most critical accounting estimates, as well as the effects of hypothetical changes in material assumptions used to develop each estimate, are described in the 2013 Form 10-K.  We regularly evaluate items that may impact critical accounting estimates.  As of June 30, 2014, there are no significant changes to the critical accounting estimates from what was reported in our 2013 Form 10-K.

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Summary

Management believes the current assumptions used to estimate amounts reflected in our Consolidated Financial Statements are appropriate.  However, if actual experience differs from the assumptions used in estimating amounts reflected in our Consolidated Financial Statements, the resulting changes could have a material adverse effect on our consolidated results of operations, and in certain situations, could have a material adverse effect on liquidity and our financial condition.

SEGMENT REPORTING

The following section of this MD&A discusses the results of each of our reporting segments.  We measure the financial results of our segments using “segment earnings (loss),” defined as shareholders’ net income (loss) before after-tax realized investment results. In the following segment discussions, we also present information using “adjusted income (loss) from operations,” defined as segment earnings (loss) excluding special items and results of the GMIB business. Adjusted income (loss) from operations is another measure of profitability used by our management because it presents the underlying results of operations of our businesses and permits analysis of trends in underlying revenue, expenses and shareholders’ net income. This measure is not determined in accordance with GAAP and should not be viewed as a substitute for the most directly comparable GAAP measure that is shareholders’ net income.  We exclude special items because management does not believe they are representative of our underlying results of operations. We also exclude the results of the GMIB business because, prior to the reinsurance transaction with Berkshire on February 4, 2013 the changes in the fair value of GMIB assets and liabilities were volatile and unpredictable.

Effective with the first quarter of 2014, we combined the results of the Run-off Reinsurance segment with other immaterial segments in Other Operations.  Prior periods have been conformed to the current year presentation.

Shareholders’ net income	Three Months Ended June 30,						Six Months Ended June 30,
(In millions)	2014		2013		% Change		2014		2013		% Change
Segment earnings (loss)
Global Health Care	$	402	$	379	6	%	$	841	$	806	4	%
Global Supplemental Benefits	61		49		24		114		104		10
Group Disability and Life	110		104		6		177		102		74
Other Operations	13		15		(13)		30		(447)		107
Corporate	(56)		(59)		5		(131)		(113)		(16)
Segment earnings	530		488		9		1,031		452		128
Realized investment gains, net of taxes	43		17		153		70		110		(36)
Shareholders’ net income	$	573	$	505	13	%	$	1,101	$	562	96	%

Adjusted Income (Loss) From Operations	Three Months Ended June 30,						Six Months Ended June 30,
(In millions)	2014		2013		% Change		2014		2013		% Change
Global Health Care	$	402	$	403	-	%	$	841	$	830	1	%
Global Supplemental Benefits	61		49		24		114		104		10
Group Disability and Life	110		104		6		177		153		16
Other Operations	13		15		(13)		30		35		(14)
Corporate	(56)		(59)		5		(131)		(113)		(16)
Total	$	530	$	512	4	%	$	1,031	$	1,009	2	%

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Global Health Care Segment

We measure the operating effectiveness of the Global Health Care segment using the following key metrics:

·segment earnings and adjusted income from operations;

·customer growth;

·sales of specialty products;

·operating expense as a percentage of segment revenues (operating expense ratio); and

·medical expense as a percentage of premiums (medical care ratio) in the guaranteed cost and Medicare businesses.

Results of Operations

FINANCIAL SUMMARY	Three Months Ended June 30,							Six Months Ended June 30,
(In millions)	2014		2013			% Change		2014		2013			% Change
Premiums and fees	$	6,119	$	5,687		8	%	$	12,113	$	11,511		5	%
Net investment income	84		82			2		157		157			-
Mail order pharmacy revenues	547		437			25		1,042		862			21
Other revenues	60		47			28		117		95			23
Segment revenues	6,810		6,253			9		13,429		12,625			6
Mail order pharmacy costs	469		362			30		883		706			25
Benefits and other expenses	5,681		5,301			7		11,160		10,667			5
Benefits and expenses	6,150		5,663			9		12,043		11,373			6
Income before taxes	660		590			12		1,386		1,252			11
Income taxes	259		211			23		546		446			22
(Loss) attributable to noncontrolling interests	(1)		-			n/m		(1)		-			n/m
Segment earnings	402		379			6		841		806			4
Less: special items (after-tax) included in segment earnings:
Transaction costs associated with PBM services agreement	-		(24)			100		-		(24)			100
Adjusted income from operations	$	402	$	403		-	%	$	841	$	830		1	%
Realized investment gains (losses), net of taxes	$	18	$	(4)		n/m		$	29	$	51		(43)	%
Effective tax rate	39.2%		35.8		%	340	bps	39.4%		35.6		%	380	bps

The increases in segment earnings for the three months and six months ended June 30, 2014 compared with the same periods in 2013 are largely due to the absence in 2014 of the transaction costs incurred in the second quarter of 2013 related to the PBM services agreement that were reported as a special item.

Adjusted income from operations was flat for the three months ended June 30, 2014 compared with the same period in 2013, driven by increased specialty contributions, including strong pharmacy results, offset by higher medical costs due to less favorable prior period development in our group commercial business, lower margins in our government segment, and higher operating expenses reflecting investment spending to enhance our capabilities.  Results also reflect the unfavorable impact of our exit from the limited benefits business. After considering recoveries from the government risk mitigation programs (see the Health Care Industry Developments section of this MD&A for further information), results in our U.S. individual business were flat.

For the six months ended June 30, 2014 adjusted income from operations increased compared with the same period in 2013, primarily driven by increased specialty contributions, including strong pharmacy results, partially offset by the impact of a higher medical care ratio in the U.S. individual business after considering recoveries from the government risk mitigation programs, and lower margins in our government segment.  Results also include higher operating expenses primarily reflecting investment spending to enhance our capabilities, and the unfavorable impact of our exit from the limited benefits business.

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Revenues

The table below shows premiums and fees for the Global Health Care segment:

	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2014		2013		2014		2013
Medical:
Guaranteed cost	$	1,165	$	1,108	$	2,233	$	2,215
Experience-rated	612		569		1,175		1,140
Stop loss	566		467		1,116		931
International health care	454		438		910		882
Dental	302		282		600		565
Medicare	1,442		1,413		2,871		2,851
Medicaid	93		79		174		154
Medicare Part D	357		351		793		787
Other	199		182		400		364
Total premiums	5,190		4,889		10,272		9,889
Fees	929		798		1,841		1,622
Total premiums and fees	$	6,119	$	5,687	$	12,113	$	11,511

Premiums and fees. The increases for the three months and six months ended June 30, 2014 compared with the same periods in 2013 were primarily driven by rate increases on most products in the Commercial segment to recover underlying medical cost trends and new Health Care Reform mandated fees.  In addition, premiums and fees reflect increased specialty contributions and growth in stop loss customers, partially offset by a decline in commercial risk customers including a shift from our insured to self-insured products and our exit from the limited benefits business.

Mail order pharmacy revenue.  The increases for the three months and six months ended June 30, 2014 compared with the same periods in 2013 primarily reflect higher volume for specialty medications (injectibles), as well as price increases in line with pharmacy cost trend.

Benefits and Expenses

Global Health Care segment benefits and expenses consist of the following:

	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2014		2013		2014		2013
Medical claims expense	$	4,219	$	3,904	$	8,250	$	7,951
Mail order pharmacy costs	469		362		883		706
Operating expenses (excluding special items)	1,462		1,360		2,910		2,679
Special item(s)	-		37		-		37
Total benefits and expenses	$	6,150	$	5,663	$	12,043	$	11,373

	Three Months Ended June 30,		Six Months Ended June 30,
Selected ratios	2014	2013	2014	2013
Guaranteed cost medical care ratio	83.1%	78.7%	79.7%	78.2%
Medicare Advantage medical care ratio	84.8%	82.9%	83.8%	83.6%
Medicare Part D medical care ratio	88.0%	91.1%	93.5%	95.2%
Operating expense ratio (including special items)	21.5%	22.3%	21.7%	21.5%
Operating expense ratio (excluding special items)	21.5%	21.7%	21.7%	21.2%

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Medical claims expense.   The increases for the three months and six months ended June 30, 2014 compared with the same periods in 2013 primarily reflect medical cost inflation and higher utilization of medical services in the U.S. individual business.  These effects were partially offset by lower commercial risk membership and the exit from the limited benefits business. The guaranteed cost medical care ratio increased for the three months and six months ended June 30, 2014, compared with the same periods in 2013, mostly due to a higher medical care ratio in the U.S. individual business and the exit from the limited benefits business, partially offset by rate increases to cover new Health Care Reform mandated fees.  The three months ended June 30, 2014 was also impacted by less favorable prior period development in our group guaranteed cost business.

Operating expenses.  Including the special item, operating expenses increased 5% for the three months and 7% for the six months ended June 30, 2014 compared with the same periods in 2013.  Excluding the special item and the new Health Care Reform mandated fees that became effective in 2014, operating expenses increased 1% for the three months and 2% for the six months ended June 30, 2014 compared with the same periods in 2013.  These increases primarily reflect higher spending to enhance our capabilities, including our new PBM service arrangement, partially offset by operating cost efficiencies.

The operating expense ratios, both including and excluding special items, decreased for the three months ended June 30, 2014, compared with the same period in 2013, reflecting higher revenue and operating cost efficiencies.  These impacts were partially offset by new Health Care Reform mandated fees and higher spending to enhance our capabilities, including our new PBM service arrangement.

The operating expense ratios, both including and excluding special items, increased for the six months ended June 30, 2014, compared with the same period in 2013 reflecting new Health Care Reform mandated fees and higher spending to enhance our capabilities, including our new PBM service arrangement.  These impacts were partially offset by operating cost efficiencies and higher revenue.

Effective Tax Rate.  The increases in the segment’s effective tax rates for the three months and six months ended June 30, 2014 compared to the same periods in 2013 were attributable to the 2014 health insurance industry fee that is not tax deductible.

Other Items Affecting Health Care Results

Global Health Care Medical Claims Payable

Medical claims payable is higher at June 30, 2014 compared to December 31, 2013, primarily reflecting higher Stop Loss reserves.  (See Note 4 to the Consolidated Financial Statements for additional information).

Medical Customers

A medical customer is defined as a person meeting any one of the following criteria:

·is covered under an insurance policy or service agreement issued by us;

·has access to our provider network for covered services under their medical plan; or

·has medical claims that are administered by us.

As of June 30, 2014 estimated total medical customers were as follows:

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(In thousands)	2014	2013
Commercial Risk:
U.S. Guaranteed cost (1)	943	953
U.S. Experience-rated	814	791
International health care - risk	753	767
Total commercial risk(1)	2,510	2,511
Medicare	455	458
Medicaid	30	24
Total government	485	482
Total risk (1)	2,995	2,993
Service, including international health care	11,252	11,119
Total medical customers (excluding limited benefits)	14,247	14,112
Limited benefits	-	174
Total medical customers	14,247	14,286

(1) 2013 excludes limited benefits customers.

In connection with Health Care Reform, we exited the limited benefits business effective December 31, 2013.   Excluding this impact, our medical customer base as of June 30, 2014 was modestly higher than the same period in 2013, primarily driven by continued growth in the select, individual, and government market segments, partially offset by a decline in the national market segment.

Global Supplemental Benefits Segment

The key factors affecting segment earnings and adjusted income from operations for this segment are:

·premium growth, including new business and customer retention;

·benefits expense as a percentage of earned premium and fees (loss ratio);

·operating expense and acquisition expense as a percentage of segment revenues (expense ratio and acquisition cost ratio); and

·the impact of foreign currency movements.

Throughout this discussion, prior period currency adjusted income from operations, revenues, and benefits and expenses are calculated by applying the current period’s exchange rates to reported results in the prior period.  A strengthening U.S. Dollar against foreign currencies decreases segment earnings, while a weakening U.S. Dollar produces the opposite effect.

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Results of Operations

	Three Months Ended						Six Months Ended
FINANCIAL SUMMARY	June 30,						June 30,
(In millions)	2014		2013		% Change		2014		2013		% Change
Premiums and fees	$	722	$	613	18	%	$	1,402	$	1,217	15	%
Net investment income	28		25		12		54		50		8
Other revenues	7		9		(22)		17		17		-
Segment revenues	757		647		17		1,473		1,284		15
Benefits and expenses	675		579		17		1,323		1,141		16
Income before taxes	82		68		21		150		143		5
Income taxes	21		18		17		35		36		(3)
Income attributable to noncontrolling interests	-		1		(100)		1		3		(67)
Segment earnings	61		49		24		114		104		10
Adjusted income from operations	$	61	$	49	24	%	$	114	$	104	10	%
Adjusted income from operations, using actual 2014 currency exchange rates	$	61	$	53	15	%	$	114	$	108	6	%
Realized investment gains, net of taxes	$	-	$	1	(100)	%	$	-	$	6	(100)	%
Effective tax rate	25.6%		26.5%		(90)	bps	23.3%		25.2%		(190)	bps

The increase in segment earnings for the three and six months ended June 30, 2014 compared with the same periods in 2013 was primarily driven by business growth and a lower acquisition cost ratio, partially offset by higher claims.

Revenues

Premiums and fees increased for the three months and six months ended June 30, 2014.  Applying actual 2014 currency exchange rates to 2013 results, premiums and fees increased by 13% for the three months and the six months ended June 30, 2014, compared with the same periods in 2013.  These increases were primarily attributable to strong persistency and new sales, particularly in South Korea and the U.S.  The growth in South Korea reflects both customer growth and sales of higher premium products.

Net investment income increased for the three months and six months ended June 30, 2014 compared with the same periods last year, primarily due to asset growth, particularly in South Korea.

Benefits and Expenses

Benefits and expenses increased for the three months and six months ended June 30, 2014.  Applying actual 2014 currency exchange rates to 2013 results, benefits and expenses increased by 12% for the three months and 14% for the six months ended June 30, 2014, compared with the same periods in 2013.  The increase primarily reflects business growth and higher claims, primarily in South Korea.

Loss ratios increased for the three months and six months ended June 30, 2014 compared with the same periods in 2013, reflecting higher claims across multiple products in South Korea.

Acquisition cost ratios decreased for the three months and six months ended June 30, 2014 compared with the same periods in 2013, reflecting a shift toward higher premium products and more disciplined spending.  Policy acquisition expenses increased for the three and six months ended June 30, 2014 compared with the same periods in 2013, reflecting business growth and higher solicitation spending in newer markets.

Expense ratios were flat for the three months and six months ended June 30, 2014 compared to the same periods last year.

Effective tax rate.  The lower effective tax rates for the three months and six months ended June 30, 2014 compared with the same periods in 2013 reflect the favorable effect of expanding our capital management strategy into Taiwan in the fourth quarter of 2013.

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Other Items Affecting Global Supplemental Benefits Results

For our Global Supplemental Benefits segment, South Korea is the single largest geographic market. South Korea generated 52% of the segment’s revenues and 72% of the segment’s earnings for the six months ended June 30, 2014.  Due to the concentration of business in South Korea, the Global Supplemental Benefits segment is exposed to potential losses resulting from economic, regulatory and geopolitical developments in that country, as well as foreign currency movements affecting the South Korean currency, that could have a significant impact on the segment’s results and our consolidated financial results.  In South Korea and certain other geographic markets, we continue to innovate and broaden our product distribution capabilities to support business growth and mitigate potential adverse effects of increased data privacy requirements and other risks to telemarketing distribution.  For the six months ended June 30, 2014, our Global Supplemental Benefits segment operations in South Korea represented 4% of our total consolidated revenues and 8% of shareholders’ net income.

Group Disability and Life Segment

Key factors affecting segment earnings and adjusted income from operations for this segment are:

·premium growth, including new business and customer retention;

·net investment income;

·benefits expense as a percentage of earned premiums (loss ratio); and

·other operating expense as a percentage of earned premiums and fees (expense ratio).

Results of Operations

	Three Months Ended						Six Months Ended
FINANCIAL SUMMARY	June 30,						June 30,
(In millions)	2014		2013		% Change		2014		2013		% Change
Premiums and fees	$	890	$	846	5	%	$	1,806	$	1,704	6	%
Net investment income	85		80		6		166		156		6
Other revenues	1		1		-		-		1		(100)
Segment revenues	976		927		5		1,972		1,861		6
Benefits and expenses	816		782		4		1,716		1,722		-
Income before income taxes	160		145		10		256		139		84
Income taxes	50		41		22		79		37		114
Segment earnings	110		104		6		177		102		74
Less special items (after-tax) included in segment earnings:
Charge for disability claims regulatory matter (See Note 16 to the Consolidated Financial Statements)	-		-		-		-		(51)		100
Adjusted income from operations	$	110	$	104	6	%	$	177	$	153	16	%
Realized investment gains, net of taxes	$	6	$	16	(63)	%	$	13	$	30	(57)	%
Effective tax rate	31.3%		28.3%		300	bps	30.9%		26.6%		430	bps

For the three months ended June 30, 2014, segment earnings and adjusted income from operations increased compared with the same period in 2013 due to favorable  life results, a lower expense ratio and the favorable impact of disability reserve reviews, partially offset by less favorable disability claims experience and a lower discount rate on new long-term disability claims. Disability results for the three months ended June 30, 2014 included the favorable after-tax effect of reserve reviews of $35 million as compared to $27 million in the same period in 2013. Results for the three months ended June 30, 2013 also included the $14 million favorable after-tax effect of a higher discount rate on claims incurred during 2013 resulting from the reallocation of higher yielding assets to the disability and life portfolio that had previously supported liabilities in the run-off reinsurance business.

For the six months ended June 30, 2014, segment earnings increased compared with the same period in 2013 due primarily to the absence of the $51 million after-tax charge related to a disability claims regulatory matter.  The increase in adjusted income from operations was primarily driven by a lower expense ratio and favorable life results, partially offset by less favorable disability results and accident claims experience. Results included the favorable after-tax effect of reserve reviews of $37 million for the six months ended June 30, 2014 and $29 million for the same period in 2013.  Results for the six months ended June 30, 2013 included the $14 million favorable after-tax effect of a higher discount rate on claims incurred during 2013 resulting from the reallocation of higher yielding assets to the disability and life portfolio described above.

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Revenues

Premiums and fees increased for the three months and six months ended June 30, 2014 compared with the same periods in 2013 reflecting disability and life new sales, continued strong persistency and in-force growth.

Net investment income increased for the three months and six months ended June 30, 2014 compared with the same periods in 2013 due to higher assets, partially offset by lower yields.

Benefits and Expenses

Benefits and expenses increased for the three months ended June 30, 2014 compared with the same period in 2013 due primarily to business growth and less favorable disability results, partially offset by a lower expense ratio and favorable life claims experience.

The lower expense ratio is driven by strong operating expense management.  Less favorable disability results reflect higher claims and a lower discount rate on new claims, partially offset by the favorable impact of reserve reviews noted above. Benefits and expenses for the three months ended June 30, 2014 included the before-tax favorable impact of reserve reviews of $50 million, compared with $39 million for the same period in 2013.

Benefits and expenses decreased slightly for the six months ended June 30, 2014 compared with the same period in 2013 due primarily to the absence of the $77 million before-tax charge for the disability claims regulatory matter, a lower expense ratio and favorable life results, partially offset by business growth, less favorable disability results and accident claims experience. The lower expense ratio is driven by strong operating expense management, while life results benefited from favorable reserve development. Less favorable disability results reflect a lower discount rate on new claims, partially offset by the favorable impact of reserve reviews noted above. Benefits and expenses for the six months ended June 30, 2014 included the before-tax favorable impact of reserve reviews of $52 million, compared with $42 million for the same period in 2013.

Effective Tax Rate

Effective tax rates for the Group Disability and Life segment continue to reflect the favorable effect of tax-exempt interest income on certain fixed income investments supporting this segment.

Other Operations

As discussed at the beginning of the segment reporting section of this MD&A, beginning in the first quarter of 2014, we combined the results of the Run-off Reinsurance segment with other immaterial segments in Other Operations.  Prior year information has been conformed to the current year presentation.

Results of Operations

	Three Months Ended						Six Months Ended
FINANCIAL SUMMARY	June 30,						June 30,
(In millions)	2014		2013		% Change		2014		2013		% Change
Premiums and fees	$	27	$	26	4	%	$	53	$	54	(2)	%
Net investment income	98		101		(3)		195		210		(7)
Other revenues	3		4		(25)		7		(31)		n/m
Segment revenues	128		131		(2)		255		233		9
Benefits and expenses	109		109		-		211		923		n/m
Income (loss) before taxes	19		22		(14)		44		(690)		n/m
Income taxes (benefits)	6		7		(14)		14		(243)		n/m
Segment earnings (loss)	13		15		(13)		30		(447)		n/m
Less: results of GMIB business							-		25
Charge related to reinsurance transaction							-		(507)
Adjusted income from operations	$	13	$	15	(13)	%	$	30	$	35	(14)	%
Realized investment gains (losses), net of taxes	$	(1)	$	4	n/m	%	$	8	$	23	(65)	%
Effective tax rate	31.6%		31.8%		(20)	bps	31.8%		35.2%		(340)	bps

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Segment earnings slightly decreased for the three months ended June 30, 2014 compared with the same period in 2013, primarily reflecting higher COLI claims experience.  Segment earnings improved significantly for the six months ended June 30, 2014 compared with the same period in 2013, primarily from the absence of the $507 million after-tax charge associated with the 2013 Berkshire reinsurance transaction, partially offset by the absence of $25 million after-tax GMIB gains in 2013. See Note 5 to the Consolidated Financial Statements for additional information.

Adjusted income from operations decreased for the three months and  six months ended June 30, 2014 compared with the same periods last year, primarily reflecting higher COLI claims experience.

Revenues

Premiums and fees.  Premiums and fees reflect revenue primarily from universal and whole life insurance policies in the COLI business.  Premiums and fees were flat for the time periods presented and primarily reflect strong persistency.

Net investment income.  Net investment income decreased for the three months ended June 30, 2014 compared with the same period in 2013, primarily due to lower average assets. For the six months ended June 30, 2014, the decline primarily reflected the selling or reallocating of investment assets as a result of the reinsurance transaction with Berkshire.

Other revenues.   Other revenues were flat for the three months ended June 30, 2014 compared with the same period in 2013.  For the six months ended June 30, 2013, other revenues included losses of $39 million associated with a dynamic hedge program for the run-off reinsurance business that was discontinued in 2013 with the effective exit from the GMDB and GMIB businesses.  Excluding this hedge activity, other revenues were flat for the six months ended June 30, 2014, compared with the same period in 2013.

Benefits and expenses.

Benefits and expenses were flat for the three months ended June 30, 2014 compared with the same period in 2013, primarily due to higher claims experience in the COLI business offset by lower operating expenses. Benefits and expenses decreased for the six months ended June 30, 2014, compared with the same period in 2013 primarily due to the absence of GMDB and GMIB activity of $709 million resulting largely from the Berkshire transaction in 2013.

Corporate

Description

Corporate reflects amounts not allocated to operating segments, such as net interest expense (defined as interest on corporate debt less net investment income on investments not supporting segment operations), interest on uncertain tax positions, certain litigation matters, intersegment eliminations, compensation cost for stock options, expense associated with our frozen pension plans, certain corporate project costs and corporate overhead expenses such as directors’ expenses.

	Three Months Ended								Six Months Ended
FINANCIAL SUMMARY	June 30,								June 30,
(In millions)	2014			2013			% Change		2014			2013			% Change
Segment loss	$	(56	)	$	(59	)	5	%	$	(131	)	$	(113	)	(16)	%
Adjusted loss from operations	$	(56	)	$	(59	)	5	%	$	(131	)	$	(113	)	(16)	%
Realized investment gains, net of taxes	$	20		$	-		n/m	%	$	20		$	-		n/m	%

Corporate’s segment loss for the three months ended June 30, 2014 was flat relative to the same period in 2013.  For the six months ended June 30, 2014, Corporate’s segment loss was higher than the same period in 2013, driven largely by higher operating expenses and a less favorable effective tax rate.

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INVESTMENT ASSETS

The following table presents our invested asset portfolio as of June 30, 2014, and December 31, 2013.  Overall invested assets have increased during 2014, reflecting increased investment in fixed maturities and the impact of decreased market yields on asset valuations.  These investments do not include separate account assets.

(In millions)	June 30, 2014		December 31, 2013
Fixed maturities	$	18,321	$	16,486
Equity securities	131		141
Commercial mortgage loans	2,217		2,252
Policy loans	1,453		1,485
Real estate	62		97
Other long-term investments	1,336		1,273
Short-term investments	232		631
Total	$	23,752	$	22,365

Additional information regarding our investment assets and related accounting policies is included in Notes 2, 7, 8, 9, 10 and 13 to the Consolidated Financial Statements.  More detailed information about fixed maturities by type of issuer, maturity dates, and, for mortgages, by debt service coverage and loan-to-value ratios is included in Note 8 to the Consolidated Financial Statements and Notes 10 and 11 to the Consolidated Financial Statements in our 2013 Form 10-K.

Fixed Maturities

Investments in fixed maturities include publicly traded and privately placed debt securities, mortgage and other asset-backed securities, preferred stocks redeemable by the investor and hybrid and trading securities.  These investments are generally classified as available for sale and are carried at fair value on our balance sheet.  Additional information regarding valuation methodologies, key inputs and controls is included in Note 7 of the Consolidated Financial Statements.

The following table reflects our fixed maturity portfolio by type of issuer as of June 30, 2014 and December 31, 2013:

(In millions)	June 30, 2014		December 31, 2013
Federal government and agency	$	1,252	$	880
State and local government	2,023		2,144
Foreign government	1,706		1,444
Corporate	12,397		10,981
Federal agency mortgage-backed	69		76
Other mortgage-backed	78		77
Other asset-backed	796		884
Total	$	18,321	$	16,486

The fixed maturity portfolio increased approximately $1.8 billion during the six months ended June 30, 2014, reflecting increased investment in fixed maturities and the impact of decreased market yields on asset valuations.  Although overall asset values are well in excess of amortized cost, there are specific securities with amortized cost in excess of fair value by $22 million in aggregate as of June 30, 2014.  See Note 8 to the Consolidated Financial Statements for further information.

As of June 30, 2014, $16.4 billion, or 89%, of the fixed maturities in our investment portfolio were investment grade (Baa and above, or equivalent), and the remaining $1.9 billion were below investment grade.  The majority of the bonds that are below investment grade are rated at the higher end of the non-investment grade spectrum.  These quality characteristics have not materially changed since December 31, 2013.

Corporate fixed maturities include private placement investments of $4.7 billion that are generally less marketable than publicly-traded bonds.  However, yields on these investments tend to be higher than yields on publicly-traded bonds with comparable credit

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risk.  We perform a credit analysis of each issuer, diversify investments by industry and issuer and require financial and other covenants that allow us to monitor issuers for deteriorating financial strength and pursue remedial actions, if warranted.  At June 30, 2014, corporate fixed maturities include $376 million of investments in companies that are domiciled or have significant business interests in European countries with significant political or economic concerns (Portugal, Italy, Ireland, Greece and Spain).  These investments have an average quality rating of Baa3 and are diversified by industry sector, including approximately 2% invested in financial institutions.

We invest in high quality foreign government obligations, with an average quality rating of Aa3 as of June 30, 2014.  These investments are primarily concentrated in Asia consistent with the geographic distribution of our international business operations.  Foreign government obligations also include $205 million of investments in European sovereign debt, none of which are in countries with significant political or economic concerns.

Our investments in state and local government securities are diversified by issuer and geography with no single exposure greater than $28 million.  We assess each issuer’s credit quality based on a fundamental analysis of underlying financial information and do not rely solely on statistical rating organizations or monoline insurer guarantees.  As of June 30, 2014, 98% of our investments in these securities were rated A3 or better excluding guarantees by monoline bond insurers, consistent with the prior year.

As of June 30, 2014, we had no direct investments in monoline bond insurers.  Guarantees provided by various monoline bond insurers for certain investments in state and local governments and other asset-backed securities totaled $1,665 million as of June 30, 2014.  More detailed information about guarantees provided by monoline bond insurers is included in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our 2013 Form 10-K.

Commercial Mortgage Loans

Our commercial mortgage loans are fixed rate loans, diversified by property type, location and borrower.  Loans are secured by high quality commercial properties and are generally made at less than 75% of the property’s value at origination of the loan.  Property value, debt service coverage, quality, building tenancy and stability of cash flows are all important financial underwriting considerations.  We hold no direct residential mortgage loans and do not securitize or service mortgage loans.

We completed an annual in-depth review of our commercial mortgage loan portfolio during the second quarter of 2014.  This review included an analysis of each property’s year-end 2013 financial statements, rent rolls, operating plans and budgets for 2014, a physical inspection of the property and other pertinent factors.  Based on this review, the portfolio’s average loan-to-value ratio improved to 63% at June 30, 2014 from 64% at December 31, 2013, reflecting a modest increase in values for high quality commercial real estate.  The portfolio’s average debt service coverage ratio also improved, increasing to 1.64 at June 30, 2014 from 1.62 at December 31, 2013.

Commercial real estate capital markets remain most active for well leased, quality commercial real estate located in strong institutional investment markets.  The vast majority of properties securing the mortgages in our mortgage portfolio possess these characteristics.  While commercial real estate fundamentals continued to improve, the improvement has varied across geographies and property types.

The commercial mortgage portfolio consists of approximately 115 loans, including six impaired loans with a carrying value totaling $166 million that are classified as problem or potential problem loans.  Three of these loans totaling $86 million, net of $4 million in reserves, are current based on restructured terms and three loans totaling $80 million, net of $8 million in reserves, are current.  All of the remaining loans continue to perform under their contractual terms.  We have $163 million of loans maturing in the next twelve months.  Given the quality and diversity of the underlying real estate, positive debt service coverage and significant borrower cash investment averaging 30%, we remain confident that the vast majority of borrowers will continue to perform as expected under their contract terms.

Other Long-term Investments

Our other long-term investments include $1.2 billion in security partnership and real estate funds, as well as direct investments in real estate joint ventures.  The funds typically invest in mezzanine debt or equity of privately held companies (securities partnerships) and equity real estate.  Given our subordinate position in the capital structure of these underlying entities, we assume a higher level of risk for higher expected returns.  To mitigate risk, investments are diversified across approximately 100 separate partnerships, and approximately 60 general partners who manage one or more of these partnerships.  Also, the funds’ underlying investments are diversified by industry sector or property type, and geographic region.  No single partnership investment exceeds 7% of our securities and real estate partnership portfolio.

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Although the total fair values of these investments exceeded their carrying values as of June 30, 2014, the fair value of our ownership interest in certain funds that are carried at cost was less than carrying value by $19 million.  We expect to recover their carrying value over the average remaining life of these investments of approximately 5 years.  Given the current economic environment, future impairments are possible; however, management does not expect those losses to have a material effect on our results of operations, financial condition or liquidity.

Problem and Potential Problem Investments

“Problem” bonds and commercial mortgage loans are either delinquent by 60 days or more or have been restructured as to terms, including concessions by us to modify the interest rate, principal payment or maturity date.  “Potential problem” bonds and commercial mortgage loans are considered current (no payment more than 59 days past due), but management believes they have certain characteristics that increase the likelihood that they may become problems.  The characteristics management considers include, but are not limited to, the following:

·request from the borrower for restructuring;

·principal or interest payments past due by more than 30 but fewer than 60 days;

·downgrade in credit rating;

·collateral losses on asset-backed securities; and

·for commercial mortgages, deterioration of debt service coverage below 1.0 or value declines resulting in estimated loan-to-value ratios increasing to 100% or more.

We recognize interest income on problem bonds and commercial mortgage loans only when payment is actually received because of the risk profile of the underlying investment.  The amount that would have been reflected in net income if interest on non-accrual investments had been recognized in accordance with the original terms was not significant for the six months ended June 30, 2014 or 2013.

The following table shows problem and potential problem investments at amortized cost, net of valuation reserves and write-downs:

	June 30, 2014						December 31, 2013
(In millions)	Gross		Reserve		Net		Gross		Reserve		Net
Problem bonds	$	1	$	(1)	$	-	$	2	$	(2)	$	-
Problem commercial mortgage loans (1)		100		(13)		87		41		(3)		38
Foreclosed real estate		24		-		24		29		-		29
Total problem investments	$	125	$	(14)	$	111	$	72	$	(5)	$	67
Potential problem bonds	$	18	$	(9)	$	9	$	30	$	(9)	$	21
Potential problem commercial mortgage loans		131		(8)		123		135		(8)		127
Total potential problem investments	$	149	$	(17)	$	132	$	165	$	(17)	$	148

(1) Other long-term investments included $1 million at June 30, 2014 and $7 million at December 31, 2013 of restructured loans that were previously reported in commercial mortgage loans.

Net problem and potential problem investments representing approximately 1% of total investments, excluding policy loans at June 30, 2014, increased by $28 million from December 31, 2013, primarily due to the addition of one commercial mortgage loan to problem investments.

Included in after-tax realized investment gains (losses) were asset write-downs as follows:

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	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2014		2013		2014		2013
Credit-related (1)	$	(6)	$	(5)	$	(10)	$	(5)
Other		(1)		(5)		(1)		(5)
Total	$	(7)	$	(10)	$	(11)	$	(10)

(1) Credit-related losses include increases in valuation reserves on commercial mortgage loans and asset write-downs related to investments in real estate entities. 

Investment Outlook

Financial markets in the United States continued to stabilize during the first half of 2014.  Future realized and unrealized investment results will be driven largely by market conditions that exist when a transaction occurs or at the reporting date.  These future conditions are not reasonably predictable.  We believe that the vast majority of our fixed maturity investments will continue to perform under their contractual terms and that the commercial mortgage loan portfolio is positioned to perform well due to its solid aggregate loan-to-value ratio and strong debt service coverage.  Based on our strategy to match the duration of invested assets to the duration of insurance and contractholder liabilities, we expect to hold a significant portion of these assets for the long term.  Although future impairment losses resulting from credit deterioration and interest rate movements remain possible, we do not expect these losses to have a material adverse effect on our financial condition or liquidity.

MARKET RISK

Financial Instruments

Our assets and liabilities include financial instruments subject to the risk of potential losses from adverse changes in market rates and prices.  Our primary market risk exposures are interest-rate risk and foreign currency exchange rate risk.

The loss in fair value of a hypothetical 100 basis point increase in interest rates for certain financial instruments increased from approximately $585 million at December 31, 2013 to approximately $800 million at June 30, 2014.  The increased interest rate sensitivity results primarily from the impact of an increase in asset purchases and a decrease in market yields of fixed maturities during the six months ended June 30, 2014.  In addition, the interest rate sensitivity of our long-term debt decreased resulting from interest rate swap contracts used to convert a portion of the interest rate exposure on our long-term debt from fixed rates to variable rates.

Our foreign operations hold investment assets that are generally invested in the currency of the related liabilities.  Due to an increase in the amount of these investments during the six months ended June 30, 2014 that are primarily denominated in the South Korean won, the loss in fair value of a hypothetical 10% strengthening in the U.S. dollar to foreign currencies increased from approximately $285 million at December 31, 2013 to approximately $315 million at June 30, 2014.

Certain financial instruments, such as insurance-related assets and liabilities, are excluded from these hypothetical calculations.  We encourage you to read this in conjunction with “Market Risk — Financial Instruments” included in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2013.

Stock Market Performance

The performance of equity markets can have a significant effect on our pension liabilities since equity securities comprise a significant portion of the assets of our employee pension plans.

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Item 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Information responsive to this item is contained under the caption “Market Risk” in Item 2 above, Management’s Discussion and Analysis of Financial Condition and Results of Operations.

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Item 4.CONTROLS AND PROCEDURES

Based on an evaluation of the effectiveness of Cigna’s disclosure controls and procedures conducted under the supervision and with the participation of Cigna’s management, Cigna’s Chief Executive Officer and Chief Financial Officer concluded that, as of the end of the period covered by this report, Cigna’s disclosure controls and procedures are effective to ensure that information required to be disclosed by Cigna in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported,  within the time periods specified in the Securities and Exchange Commission’s rules and forms and is accumulated and communicated to Cigna’s management, including Cigna’s Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

During the period covered by this report, there have been no changes in Cigna’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, Cigna’s internal control over financial reporting.

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 Part II.  OTHER INFORMATION

Item 1.LEGAL PROCEEDINGS

The information contained under “Litigation Matters” in Note 16 to the Consolidated Financial Statements is incorporated herein by reference.

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Item 1A.RISK FACTORS

Cigna’s Annual Report on Form 10-K for the year ended December 31, 2013 includes a detailed description of its risk factors.

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Item 2.UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

(c)  Purchases of Equity Securities by the Issuer and Affiliated Purchasers

The following table provides information about Cigna’s share repurchase activity for the quarter ended June 30, 2014:

Issuer Purchases of Equity Securities

Period	Total # of  shares purchased (1)	Average  price paid per share	Total # of shares purchased as part of  publicly announced program (2)	Approximate dollar value of shares that may  yet be purchased as part of publicly announced  program (3)
April 1-30, 2014	88,014	$       83.21	84,970	$                661,672,180
May 1-31, 2014	2,372,942	$       87.60	2,356,359	$                455,224,337
June 1-30, 2014	2,216,298	$       90.80	2,211,847	$                254,401,289
Total	4,677,254	$       89.03	4,653,176	N/A

(1)Includes shares tendered by employees as payment of taxes withheld on the exercise of stock options and the vesting of restricted stock granted under the Company’s equity compensation plans.  Employees tendered 3,044 shares in April,16,583 shares in May and 4,451 shares in June 2014.

(2)Cigna has had a repurchase program for many years, and has had varying levels of repurchase authority and activity under this program.  The program has no expiration date.  Cigna suspends activity under this program from time to time and also removes such suspensions, generally without public announcement.  Remaining authorization under the program was approximately $254 million as of June 30, 2014.  On July 23, 2014 the Company’s Board of Directors increased share repurchase authority by $500 million.  Remaining authorization under the program was approximately $662 million as of July 31, 2014.

(3)Approximate dollar value of shares is as of the last date of the applicable month.

Item 4.  MINE SAFETY DISCLOSURES

Not applicable.

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Item 6.  EXHIBITS

(a)See Exhibit Index

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Cigna Corporation
Date:	July 31, 2014
By:	/s/ Thomas A. McCarthy
	Thomas A. McCarthy
	Executive Vice PresidentChief Financial Officer
	(Duly Authorized Officer and Principal Financial Officer)

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INDEX TO EXHIBITS

Number	Description	Method of Filing
3.1	Restated Certificate of Incorporation of the registrant as last amended October 28, 2011	Filed as Exhibit 3.1 to the registrant’s Form 10-Q for the quarterly period ended September 30, 2011 and incorporated herein by reference.
3.2	By-Laws of the registrant as last amended and restated December 6, 2012	Filed as Exhibit 3.2 to the registrant’s Form 10-K for the year ended December 31, 2012 and incorporated herein by reference.
10.1*	Offer letter for Matthew G. Manders	Filed as Exhibit 10.1 to the registrant’s Form 8-K filed June 4, 2014 and incorporated herein by reference.
12	Computation of Ratios of Earnings to Fixed Charges	Filed herewith.
31.1	Certification of Chief Executive Officer of Cigna Corporation pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934	Filed herewith.
31.2	Certification of Chief Financial Officer of Cigna Corporation pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934	Filed herewith.
32.1	Certification of Chief Executive Officer of Cigna Corporation pursuant to Rule 13a-14(b) or Rule 15d-14(b) and 18 U.S.C. Section 1350	Furnished herewith.
32.2	Certification of Chief Financial Officer of Cigna Corporation pursuant to Rule 13a-14(b) or Rule 15d-14(b) and 18 U.S.C. Section 1350	Furnished herewith.
101	Financial statements from the quarterly report on Form 10-Q of Cigna Corporation for the quarter ended June 30, 2014 formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Statements of Income; (ii) the Consolidated Statements of Comprehensive Income; (iii) the Consolidated Balance Sheets; (iv) the Consolidated Statements of Total Equity; (v) the Consolidated Statements of Cash Flow; and (vi) the Notes to the Consolidated Financial Statements

* Management contracts and compensatory plans or arrangements.

Shareholders may obtain copies of exhibits by writing to Cigna Corporation, Shareholder Services Department, 1601 Chestnut Street, Philadelphia, PA  19192.

E-1

EX-12

Exhibit 12

Cigna Corporation

Computation of Ratio of Earnings to Fixed Charges

	Six Months Ended
	June 30,
(Dollars in millions)	2014		2013
Income before income taxes	$	1,754	$	841
Adjustments:
Income from equity investee	(13)		(10)
Income attributable to noncontrolling interests	(1)		(3)
Income before income taxes, as adjusted	$	1,740	$	828
Fixed charges included in income:
Interest expense	$	132	$	135
Interest portion of rental expense	21		20
Interest credited to contractholders	3		1
	$	156	$	156
Income available for fixed charges	$	1,896	$	984
RATIO OF EARNINGS TO FIXED CHARGES:	12.2		6.3

EX-31.1

Exhibit 31.1  CERTIFICATION

I, DAVID M. CORDANI, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Cigna Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

	/s/ David M. Cordani
	Chief Executive Officer
Date:	July 31, 2014

EX-31.2

Exhibit 31.2  CERTIFICATION

I, THOMAS A. MCCARTHY, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Cigna Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

	/s/ Thomas A. McCarthy
	Chief Financial Officer
Date:	July 31, 2014

EX-32.1

Exhibit 32.1 Certification of Chief Executive Officer of Cigna Corporation pursuant to 18 U.S.C. Section 1350

I certify that, to the best of my knowledge and belief, the Quarterly Report on Form 10-Q of Cigna Corporation for the fiscal period ending June 30, 2014 (the “Report”):

(1)complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Cigna Corporation.

/s/ David M. Cordani

David M. Cordani

Chief Executive Officer

July 31, 2014

EX-32.2

Exhibit 32.2 Certification of Chief Financial Officer of Cigna Corporation pursuant to 18 U.S.C. Section 1350

I certify that, to the best of my knowledge and belief, the Quarterly Report on Form 10-Q of Cigna Corporation for the fiscal period ending June 30, 2014 (the “Report”):

(1)complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Cigna Corporation.

/s/ Thomas A. McCarthy

Thomas A. McCarthy

Chief Financial Officer

July 31, 2014

XML

Global Health Care Medical Claims Payable (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended		12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Paid claims related to:
Add: Reinsurance and other amounts recoverable	$ 7,132		$ 7,299
Accident and health insurance [Member]
Global Health Care Medical Claims Payable [Abstract]
Incurred but not yet reported	1,842		1,615
Reported claims in process	310		355
Other medical expense payable	124		80
Medical claims payable	2,276		2,050
Schedule Of Medical Claims Payable Activity [Abstract]
Claims payable, beginning balance, gross	2,050	1,856	1,856
Less: Reinsurance and other amounts recoverable	194	242	242
Balance at January 1, net	1,856	1,614	1,614
Incurred claims related to:
Current year	8,390		16,049
Prior years	(140)		(182)
Total incurred	8,250		15,867
Paid claims related to:
Current year	6,606		14,267
Prior years	1,469		1,358
Total paid	8,075		15,625
Balance at December 31, net	2,031		1,856
Add: Reinsurance and other amounts recoverable	245		194
Claims payable, ending balance, gross	2,276		2,050
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Abstract]
(Favorable) Unfavorable incurred claims related to prior years' claims payable	(140)		(182)
Incurred claims related to prior years' claims payable percentage	0.90%		1.30%
Impact Of Prior Year Development On Shareholders Net Income	46	68
Completion Factors [Member] | Accident and health insurance [Member]
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Abstract]
(Favorable) Unfavorable incurred claims related to prior years' claims payable	(51)		(74)
Incurred claims related to prior years' claims payable percentage	0.30%		0.50%
Medical Cost Trend [Member] | Accident and health insurance [Member]
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Abstract]
(Favorable) Unfavorable incurred claims related to prior years' claims payable	$ (89)		$ (108)
Incurred claims related to prior years' claims payable percentage	0.60%		0.70%

XML

Fair Value Measurements - Not Carried at Fair Value (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Commercial Mortgage Loans	$ 2,217	$ 2,252
Percentage of contractholder deposit funds that can be withdrawn at any time	60.00%
Estimate Of Fair Value Fair Value Disclosure [Member] | Fair Value Inputs Level 2 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt, including current maturities, excluding capital leases	5,721	5,550
Estimate Of Fair Value Fair Value Disclosure [Member] | Fair Value Inputs Level 3 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Commercial Mortgage Loans	2,321	2,338
Contractholder deposit funds, excluding universal life products	1,130	1,081
Carrying Reported Amount Fair Value Disclosure [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Commercial Mortgage Loans	2,217	2,252
Contractholder deposit funds, excluding universal life products	1,116	1,072
Long-term debt, including current maturities, excluding capital leases	$ 4,984	$ 4,997

XML

Fair Value Measurements - Level 3 Financial Assets and Liabilities (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2014 Fair Value, Measurements, Recurring [Member]	Dec. 31, 2013 Fair Value, Measurements, Recurring [Member]	Jun. 30, 2014 Fair Value, Measurements, Recurring [Member] Fair Value Inputs Level 3 [Member]	Dec. 31, 2013 Fair Value, Measurements, Recurring [Member] Fair Value Inputs Level 3 [Member]	Jun. 30, 2014 Fair Value, Measurements, Recurring [Member] Fair Value Inputs Level 3 [Member] Other asset and mortgage-backed securities [Member] Valued Using Pricing Models [Member]	Dec. 31, 2013 Fair Value, Measurements, Recurring [Member] Fair Value Inputs Level 3 [Member] Other asset and mortgage-backed securities [Member] Valued Using Pricing Models [Member]	Jun. 30, 2014 Fair Value, Measurements, Recurring [Member] Fair Value Inputs Level 3 [Member] Other asset and mortgage-backed securities [Member] Unobservable Inputs Developed By Company [Member]	Dec. 31, 2013 Fair Value, Measurements, Recurring [Member] Fair Value Inputs Level 3 [Member] Other asset and mortgage-backed securities [Member] Unobservable Inputs Developed By Company [Member]	Jun. 30, 2014 Fair Value, Measurements, Recurring [Member] Fair Value Inputs Level 3 [Member] Other asset and mortgage-backed securities [Member] Maximum [Member] Unobservable Inputs Developed By Company [Member]	Dec. 31, 2013 Fair Value, Measurements, Recurring [Member] Fair Value Inputs Level 3 [Member] Other asset and mortgage-backed securities [Member] Maximum [Member] Unobservable Inputs Developed By Company [Member]	Jun. 30, 2014 Fair Value, Measurements, Recurring [Member] Fair Value Inputs Level 3 [Member] Other asset and mortgage-backed securities [Member] Minimum [Member] Unobservable Inputs Developed By Company [Member]	Dec. 31, 2013 Fair Value, Measurements, Recurring [Member] Fair Value Inputs Level 3 [Member] Other asset and mortgage-backed securities [Member] Minimum [Member] Unobservable Inputs Developed By Company [Member]	Jun. 30, 2014 Fair Value, Measurements, Recurring [Member] Fair Value Inputs Level 3 [Member] Other asset and mortgage-backed securities [Member] Weighted Average [Member] Unobservable Inputs Developed By Company [Member]	Dec. 31, 2013 Fair Value, Measurements, Recurring [Member] Fair Value Inputs Level 3 [Member] Other asset and mortgage-backed securities [Member] Weighted Average [Member] Unobservable Inputs Developed By Company [Member]	Jun. 30, 2014 Fair Value, Measurements, Recurring [Member] Fair Value Inputs Level 3 [Member] Corporate and government debt securities [Member] Valued Using Pricing Models [Member]	Dec. 31, 2013 Fair Value, Measurements, Recurring [Member] Fair Value Inputs Level 3 [Member] Corporate and government debt securities [Member] Valued Using Pricing Models [Member]	Jun. 30, 2014 Fair Value, Measurements, Recurring [Member] Fair Value Inputs Level 3 [Member] Corporate and government debt securities [Member] Unobservable Inputs Developed By Company [Member]	Dec. 31, 2013 Fair Value, Measurements, Recurring [Member] Fair Value Inputs Level 3 [Member] Corporate and government debt securities [Member] Unobservable Inputs Developed By Company [Member]	Jun. 30, 2014 Fair Value, Measurements, Recurring [Member] Fair Value Inputs Level 3 [Member] Corporate and government debt securities [Member] Maximum [Member] Unobservable Inputs Developed By Company [Member]	Dec. 31, 2013 Fair Value, Measurements, Recurring [Member] Fair Value Inputs Level 3 [Member] Corporate and government debt securities [Member] Maximum [Member] Unobservable Inputs Developed By Company [Member]	Jun. 30, 2014 Fair Value, Measurements, Recurring [Member] Fair Value Inputs Level 3 [Member] Corporate and government debt securities [Member] Minimum [Member] Unobservable Inputs Developed By Company [Member]	Dec. 31, 2013 Fair Value, Measurements, Recurring [Member] Fair Value Inputs Level 3 [Member] Corporate and government debt securities [Member] Minimum [Member] Unobservable Inputs Developed By Company [Member]	Jun. 30, 2014 Fair Value, Measurements, Recurring [Member] Fair Value Inputs Level 3 [Member] Corporate and government debt securities [Member] Weighted Average [Member] Unobservable Inputs Developed By Company [Member]	Dec. 31, 2013 Fair Value, Measurements, Recurring [Member] Fair Value Inputs Level 3 [Member] Corporate and government debt securities [Member] Weighted Average [Member] Unobservable Inputs Developed By Company [Member]	Jun. 30, 2014 Fair Value, Measurements, Recurring [Member] Fair Value Inputs Level 3 [Member] Corporate [Member] Valued At Transaction Price [Member]	Dec. 31, 2013 Fair Value, Measurements, Recurring [Member] Fair Value Inputs Level 3 [Member] Corporate [Member] Valued At Transaction Price [Member]	Jun. 30, 2014 Fair Value, Measurements, Recurring [Member] Fair Value Inputs Level 3 [Member] Equity securities [Member] Valued At Transaction Price [Member]	Dec. 31, 2013 Fair Value, Measurements, Recurring [Member] Fair Value Inputs Level 3 [Member] Equity securities [Member] Valued At Transaction Price [Member]
Fair Value Disclosures [Abstract]
Percentage of investments in fixed maturities and equity securities classified in Level 3	6.00%
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]
Fixed Maturities And Equity Securities		$ 18,452	$ 16,627	$ 1,122	$ 1,190	$ 545	$ 603	$ 537	$ 593							$ 456	$ 417	$ 391	$ 305							$ 73	$ 111	$ 48	$ 59
Liquidity adjustment to discount rates used to value fixed maturities and equity securities										5.00%	6.20%	0.40%	0.60%	1.60%	1.70%					3.90%	3.70%	0.80%	0.80%	1.80%	2.00%
Adjustment to discount rates used to value fixed maturities and equity securities for weighting of credit spreads										26.50%	20.90%	1.30%	1.20%	2.50%	2.90%
Percentage of fixed maturities classified in Level 3 that represent single, unadjusted, non-binding broker quotes	10.00%
Percentage of Level 3 securities valued at transaction price	10.00%

XML

Debt - Revolving Credit and Letter of Credit (Details) (USD $)	6 Months Ended
	Jun. 30, 2014
Revolving Credit And Letter Of Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Expiration Date	Dec. 01, 2017
Line of Credit Facility, Term of Agreement	5 years
Line of Credit Facility, Maximum Borrowing Capacity	$ 1,500,000,000
Line of Credit Facility, Number of Participating Banks	16
Line of Credit Facility, Optional Maximum Borrowing Capacity	2,000,000,000
Line of Credit Facility, Covenant Terms	maintain a total debt to adjusted capital ratio at or below 0.50 to 1.00
Maximum debt-to-adjusted capital ratio convenant	50.00%
Credit Facility Remaining Borrowing Capacity	6,200,000,000
Letter of Credit [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	500,000,000
Letters of Credit Outstanding, Amount	$ 23,000,000
Primary Commitment Holders [Member] | Revolving Credit And Letter Of Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Number of Participating Banks	3
Line of Credit Facility, Individual Bank Percentage Committment	12.00%
Minor Commitment Holders [Member] | Revolving Credit And Letter Of Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Number of Participating Banks	13

XML

Investments - Realized Investment Gains and Losses (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended				6 Months Ended
	Jun. 30, 2014		Jun. 30, 2013		Jun. 30, 2014		Jun. 30, 2013
Realized Gains (Losses) on Investments [Line Items]
Realized investment gains (losses) before income taxes	$ 65		$ 26		$ 107		$ 165
Less income taxes (benefits)	22		9		37		55
Net realized investment gains (losses)	43		17		70		110
Impairments Table Details [Abstract]
Credit-related	(9)	[1]	(8)	[1]	(15)	[1]	(8)	[1]
Other	(1)		(8)		(1)		(8)
Total	(10)		(16)		(16)		(16)
Fixed Maturities [Member]
Realized Gains (Losses) on Investments [Line Items]
Realized investment gains (losses) before income taxes	4		22		12		89
Equity securities [Member]
Realized Gains (Losses) on Investments [Line Items]
Realized investment gains (losses) before income taxes	0		1		17		4
Commercial Mortgage Loans [Member]
Realized Gains (Losses) on Investments [Line Items]
Realized investment gains (losses) before income taxes	(4)		(4)		(4)		(4)
Real Estate [Member]
Realized Gains (Losses) on Investments [Line Items]
Realized investment gains (losses) before income taxes	0		0		13		0
Other Investments Including Derivatives [Member]
Realized Gains (Losses) on Investments [Line Items]
Realized investment gains (losses) before income taxes	$ 65		$ 7		$ 69		$ 76

[1] Credit related losses include increases in valuation reserves on commercial mortgage loans and asset write-downs related to investments in real estate entities.

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Fair Value Measurements - Financial Assets and Financial Liabilities Carried at Fair Value (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended		12 Months Ended
	Jun. 30, 2014		Dec. 31, 2013
Financial assets at fair value:
Fixed maturities	$ 18,321		$ 16,486
Equity securities	131		141
Short-term investments	232		631
Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities	18,321	[1]	16,486	[2]
Equity securities	131		141
Subtotal	18,452		16,627
Short-term investments	232		631
Total financial assets at fair value, excluding separate accounts	19,549		18,012
Financial liabilities at fair value:
Total financial liabilities at fair value	856		757
Run-off Settlement Annuity Business [Member] | Fair Value, Measurements, Recurring [Member]
Financial liabilities at fair value:
Net appreciation required to adjust future policy benefits for run-off settlement annuity business included in fixed maturities	690		458
Other derivatives [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Derivative assets	2	[3]	3	[4]
Financial liabilities at fair value:
Derivative liabilities	17	[3]	16	[4]
Other derivatives [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Derivative assets	2		3
Financial liabilities at fair value:
Derivative liabilities	17		15
Other derivatives [Member] | Non designated [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Derivative assets	0		0
Financial liabilities at fair value:
Derivative liabilities	0		1
Guaranteed Minimum Income Benefit [Member]
Financial liabilities at fair value:
Percentage of GMIB exposure covered by retrocessional coverage	100.00%		100.00%
Number of external reinsurers	3		3
Guaranteed Minimum Income Benefit [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Derivative assets	863	[5]	751	[6]
Financial liabilities at fair value:
Derivative liabilities	839		741
Federal government and agency [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities	1,252		880
State and local government [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities	2,023		2,144
Foreign government [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities	1,706		1,444
Corporate [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities	12,397		10,981
Federal agency mortgage-backed [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities	69		76
Other mortgage-backed [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities	78		77
Other asset-backed [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities	796		884
Fair Value Inputs Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities	583	[1]	297	[2]
Equity securities	1		8
Subtotal	584		305
Short-term investments	0		0
Total financial assets at fair value, excluding separate accounts	584		305
Financial liabilities at fair value:
Total financial liabilities at fair value	0		0
Fair Value Inputs Level 1 [Member] | Other derivatives [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Derivative assets	0	[3]	0	[4]
Financial liabilities at fair value:
Derivative liabilities	0	[3]	0	[4]
Fair Value Inputs Level 1 [Member] | Guaranteed Minimum Income Benefit [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Derivative assets	0	[5]	0	[6]
Financial liabilities at fair value:
Derivative liabilities	0		0
Fair Value Inputs Level 1 [Member] | Federal government and agency [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities	583		297
Fair Value Inputs Level 1 [Member] | State and local government [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities	0		0
Fair Value Inputs Level 1 [Member] | Foreign government [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities	0		0
Fair Value Inputs Level 1 [Member] | Corporate [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities	0		0
Fair Value Inputs Level 1 [Member] | Federal agency mortgage-backed [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities	0		0
Fair Value Inputs Level 1 [Member] | Other mortgage-backed [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities	0		0
Fair Value Inputs Level 1 [Member] | Other asset-backed [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities	0		0
Fair Value Inputs Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities	16,664	[1]	15,058	[2]
Equity securities	82		74
Subtotal	16,746		15,132
Short-term investments	232		631
Total financial assets at fair value, excluding separate accounts	16,980		15,766
Financial liabilities at fair value:
Total financial liabilities at fair value	17		16
Fair Value Inputs Level 2 [Member] | Other derivatives [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Derivative assets	2	[3]	3	[4]
Financial liabilities at fair value:
Derivative liabilities	17	[3]	16	[4]
Fair Value Inputs Level 2 [Member] | Guaranteed Minimum Income Benefit [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Derivative assets	0	[5]	0	[6]
Financial liabilities at fair value:
Derivative liabilities	0		0
Fair Value Inputs Level 2 [Member] | Federal government and agency [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities	669		583
Fair Value Inputs Level 2 [Member] | State and local government [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities	2,023		2,144
Fair Value Inputs Level 2 [Member] | Foreign government [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities	1,677		1,421
Fair Value Inputs Level 2 [Member] | Corporate [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities	11,897		10,476
Fair Value Inputs Level 2 [Member] | Federal agency mortgage-backed [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities	69		76
Fair Value Inputs Level 2 [Member] | Other mortgage-backed [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities	77		76
Fair Value Inputs Level 2 [Member] | Other asset-backed [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities	252		282
Fair Value Inputs Level 3 [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities	1,074	[1]	1,131	[2]
Equity securities	48		59
Subtotal	1,122		1,190
Short-term investments	0		0
Total financial assets at fair value, excluding separate accounts	1,985		1,941
Financial liabilities at fair value:
Total financial liabilities at fair value	839		741
Fair Value Inputs Level 3 [Member] | Run-off Settlement Annuity Business [Member] | Fair Value, Measurements, Recurring [Member]
Financial liabilities at fair value:
Net appreciation required to adjust future policy benefits for run-off settlement annuity business included in fixed maturities	78		60
Fair Value Inputs Level 3 [Member] | Other derivatives [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Derivative assets	0	[3]	0	[4]
Financial liabilities at fair value:
Derivative liabilities	0	[3]	0	[4]
Fair Value Inputs Level 3 [Member] | Guaranteed Minimum Income Benefit [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Derivative assets	863	[5]	751	[6]
Financial liabilities at fair value:
Derivative liabilities	839		741
Fair Value Inputs Level 3 [Member] | Federal government and agency [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities	0		0
Fair Value Inputs Level 3 [Member] | State and local government [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities	0		0
Fair Value Inputs Level 3 [Member] | Foreign government [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities	29		23
Fair Value Inputs Level 3 [Member] | Corporate [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities	500		505
Fair Value Inputs Level 3 [Member] | Federal agency mortgage-backed [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities	0		0
Fair Value Inputs Level 3 [Member] | Other mortgage-backed [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities	1		1
Fair Value Inputs Level 3 [Member] | Other asset-backed [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities	$ 544		$ 602

[1] Fixed maturities included $690 million of net appreciation required to adjust future policy benefits for the run-off settlement annuity business including $78 million of appreciation for securities classified in Level 3.

[2] Fixed maturities included $458 million of net appreciation required to adjust future policy benefits for the run-off settlement annuity business including $60 million of appreciation for securities classified in Level 3.

[3] Other derivative assets and other derivative liabilities reflected foreign currency and interest rate swaps qualifying as cash flow hedges. See Note 9 for additional information.

[4] Other derivative assets reflected interest rate and foreign currency swaps qualifying as cash flow hedges. Other derivative liabilities included $15 million of interest rate and foreign currency swaps qualifying as cash flow hedges and $1 million of interest rate and foreign currency swaps not designated as accounting hedges. See Note 9 for additional information.

[5] The GMIB assets represent retrocessional contracts in place from three external reinsurers that cover the exposures on these contracts. See Note 5 for additional information.

[6] The GMIB assets represented retrocessional contracts in place from three external reinsurers that cover the exposures on these contracts. See Note 5 for additional information.

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Penson and Other Postretirement Benefit Plans (Tables)

6 Months Ended

Jun. 30, 2014

Pension And Other Postretirement Benefit Plans [Abstract]

Components of net pension and net other postretirement benefit costs

	Pension Benefits								Other Postretirement Benefits
	Three Months Ended				Six Months Ended				Three Months Ended				Six Months Ended
	June 30,				June 30,				June 30,				June 30,
(In millions)	2014		2013		2014		2013		2014		2013		2014		2013
Service cost	$	1	$	-	$	1	$	1	$		$	-	$	-	$	-
Interest cost		52		46		103		91		3		3		6		6
Expected long-term return on plan assets		(66)		(68)		(132)		(136)				-		-		-
Amortization of:
Net loss from past experience		15		18		29		37				-		-		-
Prior service cost				-		-		-		-		(1)		(1)		(3)
Curtailment gain				-		-		-				-		-		(19)
Settlement loss				-		6		-				-		-		-
Net cost	$	2	$	(4)	$	7	$	(7)	$	3	$	2	$	5	$	(16)

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Income Taxes - Indefinite Reinvestment of Foreign Earnings (Details) (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Income Taxes [Abstract]
Increase to shareholders' net income resulting from indefinite reinvestment of foreign earnings	$ 20,000,000	$ 20,000,000
Accumulated permanently reinvested foreign earnings	1,200,000,000
Cumulative unrecognized deferred tax liabilities	$ 194,000,000

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Investments - Appreciation (Depreciation) on Fixed Maturities (Details) (USD $) In Millions, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 16,598	$ 15,273
Unrealized Appreciation	1,745	1,312
Unrealized (Depreciation)	(22)	(99)
Total Fair Value	18,321	16,486
Run-off Settlement Annuity Business [Member]
Schedule of Available-for-sale Securities [Line Items]
Unrealized Appreciation	692	478
Unrealized (Depreciation)	(2)	(20)
Total Fair Value	2,900	2,600
Federal government and agency [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	914	640
Unrealized Appreciation	338	242
Unrealized (Depreciation)	0	(2)
Total Fair Value	1,252	880
State and local government [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	1,838	1,983
Unrealized Appreciation	188	167
Unrealized (Depreciation)	(3)	(6)
Total Fair Value	2,023	2,144
Foreign government [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	1,620	1,392
Unrealized Appreciation	91	64
Unrealized (Depreciation)	(5)	(12)
Total Fair Value	1,706	1,444
Corporate [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	11,389	10,306
Unrealized Appreciation	1,020	749
Unrealized (Depreciation)	(12)	(74)
Total Fair Value	12,397	10,981
Federal agency mortgage-backed [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	68	77
Unrealized Appreciation	1	0
Unrealized (Depreciation)	0	(1)
Total Fair Value	69	76
Other mortgage-backed [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	76	76
Unrealized Appreciation	4	3
Unrealized (Depreciation)	(2)	(2)
Total Fair Value	78	77
Other asset-backed [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	693	799
Unrealized Appreciation	103	87
Unrealized (Depreciation)	0	(2)
Total Fair Value	$ 796	$ 884

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Contingencies and Other Matters - Legal and Regulatory Matters (Details) (USD $) In Millions, unless otherwise specified		3 Months Ended	6 Months Ended	3 Months Ended		12 Months Ended
	Jun. 30, 2014 Pending Litigation [Member]	Mar. 31, 2013 Unfavorable Regulatory Action [Member]	Jun. 30, 2014 Unfavorable Regulatory Action [Member]	Mar. 31, 2013 Unfavorable Regulatory Action [Member] Prior Claims [Member]	Mar. 31, 2013 Unfavorable Regulatory Action [Member] Current Claims [Member]	Dec. 31, 2009 Use Of Ingenix Data [Member]
Loss Contingencies [Line Items]
Loss Contingency Accrual, at Carrying Value	$ 189
Loss Contingency Accrual At Carrying Value, Net Of Tax	123
Loss Contingency Accrual, Carrying Value, Payments						10
Monitoring period			2 years
Reassessment period			2 years
Reassessment period, California			3 years
Loss Contingency Accrual, Carrying Value, Provision		77		48	29
Loss Contingency Accrual Carrying Value, Provision, After Tax		$ 51

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Accumulated Other Comprehensive Income (Loss) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Accumulated Other Comprehensive Income (Loss) [Line Items]
Shareholders' other comprehensive income (loss)	$ 160	$ (258)	$ 248	$ (343)
Other realized investment (gains) losses	(66)	(34)	(108)	(173)
Other operating expenses	2,044	1,950	4,076	3,806
Accumulated Net Unrealized Investment Gain (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) before reclassifications, pre-tax	157	(384)	313	(420)
Reclassification adjustment, pre-tax	(4)	(23)	(29)	(93)
Other comprehensive income (loss), pre-tax	153	(407)	284	(513)
Other comprehensive income (loss), securities, before reclassifications, tax (expense) benefit	(51)	130	(105)	142
Reclassification adjustment, securities, tax (expense) benefit	1	8	10	32
Other comprehensive income (loss), tax (expense) benefit	(50)	138	(95)	174
Other comprehensive income (loss) before reclassifications, after-tax	106	(254)	208	(278)
Reclassification adjustment, after-tax	(3)	(15)	(19)	(61)
Shareholders' other comprehensive income (loss)	103	(269)	189	(339)
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Reclassification Out Of Accumulated Other Comprehensive Income [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other realized investment (gains) losses	(4)	(23)	(29)	(93)
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss), pre-tax	0	10	0	14
Other comprehensive income (loss), tax (expense) benefit	0	(4)	0	(5)
Shareholders' other comprehensive income (loss)	0	6	0	9
Accumulated Translation Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss), pre-tax	51	(23)	38	(92)
Other comprehensive income (loss), tax (expense) benefit	(5)	7	(3)	18
Shareholders' other comprehensive income (loss)	46	(16)	35	(74)
Accumulated Defined Benefit Plans Adjustment Net Prior Service Cost Credit [Member] | Reclassification Out Of Accumulated Other Comprehensive Income [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other operating expenses	15	17	28	34
Accumulated Defined Benefit Plans Adjustment Net Prior Service Cost Credit [Member] | Other Postretirement Benefits [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassification adjustment, pre-tax	15	17	28	34
Reclassification adjustment, postretirement benefits, tax (expense) benefit	(5)	(6)	(10)	(12)
Reclassification adjustment, after-tax	10	11	18	22
Accumulated Defined Benefit Plans Adjustment Curtailment [Member] | Reclassification Out Of Accumulated Other Comprehensive Income [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other operating expenses				(19)
Accumulated Defined Benefit Plans Adjustment Curtailment [Member] | Other Postretirement Benefits [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassification adjustment, pre-tax				(19)
Reclassification adjustment, postretirement benefits, tax (expense) benefit				7
Reclassification adjustment, after-tax				(12)
Accumulated Defined Benefit Plans Adjustment Settlement [Member] | Reclassification Out Of Accumulated Other Comprehensive Income [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other operating expenses			6
Accumulated Defined Benefit Plans Adjustment Settlement [Member] | Other Postretirement Benefits [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassification adjustment, pre-tax			6
Reclassification adjustment, postretirement benefits, tax (expense) benefit			(2)
Reclassification adjustment, after-tax			4
Accumulated Defined Benefit Plans Adjustment [Member] | Reclassification Out Of Accumulated Other Comprehensive Income [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other operating expenses			34	15
Accumulated Defined Benefit Plans Adjustment [Member] | Other Postretirement Benefits [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) before reclassifications, pre-tax	2	16	2	79
Reclassification adjustment, pre-tax			34	15
Other comprehensive income (loss), pre-tax	17	33	36	94
Reclassification adjustment, postretirement benefits, tax (expense) benefit			(12)	(5)
Other comprehensive income (loss), postretirement benefits, before reclassifications, tax (expense) benefit	(1)	(6)	(1)	(28)
Other comprehensive income (loss), tax (expense) benefit	(6)	(12)	(13)	(33)
Other comprehensive income (loss) before reclassifications, after-tax	1	10	1	51
Reclassification adjustment, after-tax			22	10
Shareholders' other comprehensive income (loss)	$ 11	$ 21	$ 23	$ 61

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Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2014

Accounting Policies [Abstract]

Basis of Presentation

Note 1-- Basis of Presentation

Cigna Corporation and its subsidiaries (either individually or collectively referred to as “Cigna”, “the Company”, “we”, or “our”) is a global health services organization with a mission to help its customers improve their health, well-being and sense of security. Its insurance subsidiaries are major providers of medical, dental, disability, life and accident insurance and related products and services, the majority of which are offered through employers and other groups (e.g. governmental and non‐governmental organizations, unions and associations). Cigna also offers Medicare and Medicaid products and health, life and accident insurance coverages primarily to individuals in the U.S. and selected international markets. In addition to its ongoing operations described above, Cigna also has certain run‐off operations.

The Consolidated Financial Statements include the accounts of Cigna Corporation and its subsidiaries. Intercompany transactions and accounts have been eliminated in consolidation.  These Consolidated Financial Statements were prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Amounts recorded in the Consolidated Financial Statements necessarily reflect management's estimates and assumptions about medical costs, investment valuation, interest rates and other factors. Significant estimates are discussed throughout these Notes; however, actual results could differ from those estimates. The impact of a change in estimate is generally included in earnings in the period of adjustment. Certain reclassifications have been made to prior year amounts to conform to the current presentation.

These interim Consolidated Financial Statements are unaudited but include all adjustments (including normal recurring adjustments) necessary, in the opinion of management, for a fair statement of financial position and results of operations for the periods reported. The interim Consolidated Financial Statements and notes should be read in conjunction with the Consolidated Financial Statements and Notes included in the Company's 2013 Form 10-K.The preparation of interim Consolidated Financial Statements necessarily relies heavily on estimates. This and certain other factors, including the seasonal nature of portions of the health care and related benefits business as well as competitive and other market conditions, call for caution in estimating full year results based on interim results of operations.

Beginning in the first quarter of 2014, the Company combined the results of its run-off reinsurance business with Other Operations for segment reporting purposes. Prior year information has been conformed to the current year presentation.See Note 15 for additional information.

Changes in Accounting Pronouncements

Note 2 — Recent Accounting Changes

Accounting for Health Care Reform's Risk Mitigation Programs. Beginning in 2014,asprescribed by the Patient Protection and Affordable Care Act (referred to as “Health Care Reform”), three programs went into effect to reduce the risk for participating health insurance companies selling coverage on the public exchanges.

• A three-year (2014-2016) reinsurance programis designed to provide reimbursement to insurers for high cost individual business sold on or off the public exchanges. The reinsurance entity established by the U.S. Department of Health and Human Services (“HHS”) is funded by a per-customer reinsurance fee assessed on all commercial medical plans, including self-insured group health plans. Only non-grandfathered individual plans are eligible for recoveries if claims exceed a specified threshold, up to a reinsurance cap. Reinsurance contributions associated with non-grandfathered individual plans are reported as a reduction in premium revenue, and estimated reinsurance recoveries are established with an offsetting reduction in Global Health Care medical claims expense. Reinsurance fee contributions for other insured business are reported in other operating expenses. The Company currently does not administer reinsurance fee contributions on behalf of its self-insured employer clients.
• A permanent risk adjustment program reallocates funds from insurers with lower risk populations to insurers with higher risk populations based on the relative risk scores of participantsin non-grandfathered plans in the individual and small group markets, both on and off the exchanges. Based on the risk of our members compared to the risk of other members in the same state and market, considering data obtained from industry studies, we estimate our year-to-date risk adjustment. The Company records a risk adjustment receivable or payable, with an offsetting adjustment to premium revenue when the amounts are reasonably estimable and collection is reasonably assured.
• A three year (2014-2016) risk corridor program isdesigned to limit insurer gains and losses by comparing allowable medical costs to a target amount as defined by HHS. This program applies to individual and small group qualified health plans, operating on and off the exchanges. Variances from the target amount exceeding certain thresholds may result in amounts due to or due from HHS. The Company records a risk corridor receivable or payable as an adjustment to premium revenue based on our year-to-date experience when the amounts are reasonably estimable and collection is reasonably assured.

Revenue from Contracts with Customers (Accounting Standards Update (“ASU”) 2014-09). In May 2014, the Financial Accounting Standards Board (“FASB”) issued new revenue recognition guidance that will apply to various contracts with customers to provide goods or services, including the Company's non-insurance, administrative services contracts. It will not apply to certain contracts within the scope of other GAAP, such as insurance contracts. This new guidance introduces a model that requires companies to estimate and allocate the expected contract revenue among distinct goods or services in the contract based on relative standalone selling prices. Revenue is recognized as goods or services are delivered. This new method replaces the current GAAP approach of recognizing revenue that is fixed and determinable primarily based on contract terms. In addition, extensive new disclosures will be required including the presentation of additional categories of revenues and information about related contract assets and liabilities. This new guidance must be implemented on January 1, 2017; early adoption is not permitted. The Company may choose to adopt these changes through retrospective restatement with or without using certain practical expedients or with a cumulative effect adjustment on adoption. The Company is currently evaluating these new requirements for its noninsurance customer contracts to determine the method of implementation and any resulting estimated effects on the financial statements.

Fees Paid to the Federal Government by Health Insurers (ASU 2011-06). Effective January 1, 2014, the Company adopted the FASB's accounting guidance for the health insurance industry assessment (the “fee”) mandated by Health Care Reform. This non-deductible fee is being levied based on a ratio of an insurer's net health insurance premiums written for the previous calendar year compared to the U.S. health insurance industry total. Based on a preliminary assessment from the Internal Revenue Service for the 2014 fee, the Company adjusted its liability reported in accounts payable, accrued expenses and other liabilities to $245 million during the second quarter of 2014. The corresponding deferred cost, recorded in other assets, including other intangibles was also adjusted. Through June 30, 2014, $122 million of the deferred cost was recognized in other operating expenses; the remainder will be recognized on a straight-line basis over the balance of 2014. The Company expects to be notified of and pay the final 2014 assessment in the third quarter.

Investment Company Accounting (ASU 2013-08).Effective January 1, 2014, the Company adopted FASB's amended accounting guidance to change the criteria for reporting as an investment company, clarify the fair value measurement used by an investment company and require additional disclosures. This guidance also confirms that parent company accounting for an investment company should reflect fair value accounting. While this guidance applies to certain of the Company's security and real estate partnership investments, its adoption did not have a material impact on the Company's financial statements.

Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“AOCI”) (ASU 2013-02). Effective January 1, 2013, the Company adopted new requirements to disclose the effect of items reclassified out of AOCI into net income for each individual line item impacted in the statement of income. See Note 13 for the Company's disclosures.

Disclosures about Offsetting Assets and Liabilities (ASU 2011-11). The FASB's new requirements to disclose information related to certain investments on both a gross and net basis became effective January 1, 2013. The Company had no transactions or arrangements subject to these new disclosure requirements.

Investments

Review of declines in fair value. Management reviews fixed maturities with a decline in fair value from cost for impairment based on criteria that include:

• length of time and severity of decline;

• financial health and specific near term prospects of the issuer;
• changes in the regulatory, economic or general market environment of the issuer's industry or geographic region; and
• the Company's intent to sell or the likelihood of a required sale prior torecovery.

Credit quality. The Company regularly evaluates and monitors credit risk, beginning with the initial underwriting of a mortgage loan and continuing throughout the investment holding period. Mortgage origination professionals employ an internal credit quality rating system designed to evaluate the relative risk of the transaction at each loan's originationthat is then updated each year as part of the annual portfolio loan review. The Company evaluates and monitors credit quality on an ongoing basis, classifying each loan as a loan in good standing, potential problem loan or problem loan.

Quality ratings are based on our evaluation of a number of key inputs related to the loan, including real estate market-related factors such as rental rates and vacancies, and property-specific inputs such as growth rate assumptions and lease rollover statistics. However, the two most significant contributors to the credit quality rating are the debt service coverage and loan-to-value ratios. The debt service coverage ratio measures the amount of property cash flow available to meet annual interest and principal payments on debt, with a ratio below 1.0 indicating that there is not enough cash flow to cover the required loan payments. The loan-to-value ratio, commonly expressed as a percentage, compares the amount of the loan to the fair value of the underlying property collateralizing the loan.

The Company's annual in-depth review of its commercial mortgage loan investments is the primary mechanism for identifying emerging risks in the portfolio. The most recent review was completed by the Company's investment professionals in the second quarter of 2014 and included an analysis of each underlying property's most recent annual financial statements, rent rolls, operating plans, budgets, a physical inspection of the property and other pertinent factors. Based on historical results, current leases, lease expirations and rental conditions in each market, the Company estimates the current year and future stabilized property income and fair value, and categorizes the investments as loans in good standing, potential problem loans or problem loans.

The Company will reevaluate a loan's credit quality between annual reviews if new property information is received or an event such as delinquency or a borrower's request for restructure causes management to believe that the Company's estimate of financial performance, fair value or the risk profile of the underlying property has been impacted.

Potential problem mortgage loans are considered current (no payment more than 59 days past due), but exhibit certain characteristics that increase the likelihood of future default. The characteristics management considers include, but are not limited to, the deterioration of debt service coverage below 1.0, estimated loan-to-value ratios increasing to 100% or more, downgrade in quality rating and requests from the borrower for restructuring. In addition, loans are considered potential problems if principal or interest payments are past due by more than 30 but less than 60 days. Problem mortgage loans are either in default by 60 days or more or have been restructured as to terms, which could include concessions on interest rate, principal payment or maturity date. The Company monitors each problem and potential problem mortgage loan on an ongoing basis, and updates the loan categorization and quality rating when warranted.

Impaired commercial mortgage loans. A commercial mortgage loan is considered impaired when it is probable that the Company will not collect all amounts due (principal and interest) according to the terms of the original loan agreement. These loans are included in either problem or potential problem loans. The Company assesses each loan individually for impairment, using the information obtained from the quality review process discussed above. Impaired loans are carried at the lower of unpaid principal balance or the fair value of the underlying real estate. In some cases when it is probable that the Company will not collect the interest due under the original agreements, the loan will be considered impaired but a related valuation reserve will not be recorded because the fair value of the underlying real estate is higher than the remaining carrying value of the loan.

Because of the risk profile of the underlying investment, the Company recognizes interest income on problem mortgage loans only when payment is actually received.

Fair Value Measurements

The Company carries certain financial instruments at fair value in the financial statements including fixed maturities, equity securities, short-term investments and derivatives.  Other financial instruments are measured at fair value under certain conditions, such as when impaired.

Fair value is defined as the price at which an asset could be exchanged in an orderly transaction between market participants at the balance sheet date.  A liability's fair value is defined as the amount that would be paid to transfer the liability to a market participant, not the amount that would be paid to settle the liability with the creditor.

The Company's financial assets and liabilities carried at fair value have been classified based upon a hierarchy defined by GAAP.  The hierarchy gives the highest ranking to fair values determined using unadjusted quoted prices in active markets for identical assets and liabilities (Level 1) and the lowest ranking to fair values determined using methodologies and models with unobservable inputs (Level 3). An asset's or a liability's classification is based on the lowest level of input that is significant to its measurement.  For example, a financial asset or liability carried at fair value would be classified in Level 3 if unobservable inputs were significant to the instrument's fair value, even though the measurement may be derived using inputs that are both observable (Levels 1 and 2) and unobservable (Level 3).

The Company estimates fair values using prices from third parties or internal pricing methods. Fair value estimates received from third-party pricing services are based on reported trade activity and quoted market prices when available, and other market information that a market participant may use to estimate fair value. The internal pricing methods are performed by the Company's investment professionalsand generally involve using discounted cash flow analyses, incorporating current market inputs for similar financial instruments with comparable terms and credit quality, as well as other qualitative factors.  In instances where there is little or no market activity for the same or similar instruments, fair value is estimated using methods, models and assumptions that the Company believes a hypothetical market participant would use to determine a current transaction price.  These valuation techniques involve some level of estimation and judgment that becomes significant with increasingly complex instruments or pricing models.  

The Company is responsible for determining fair value, as wellas the appropriate level within the fair value hierarchy, based on the significance of unobservable inputs. The Company reviews methodologies, processes and controls of third-party pricing services and compares prices on a test basis to those obtained from other external pricing sources or internal estimates. The Company performs ongoing analyses of both prices received from third-party pricing services and those developed internally to determine that they represent appropriate estimates of fair value. The controls completed by the Company and third-party pricing services include reviewing to ensure that prices do not become stale and whether changes from prior valuations are reasonable or require additional review. The Company also performs sample testing of sales values to confirm the accuracy of prior fair value estimates. Exceptions identified during these processes indicate that adjustments to prices are infrequent and do not significantly impact valuations.

Inputs for instruments classified in Level 1 include unadjusted quoted prices for identical assets in active markets accessible at the measurement date.  Active markets provide pricing data for trades occurring at least weekly and include exchanges and dealer markets.

Assets in Level 1 include actively-traded U.S. government bonds and exchange-listed equity securities.Given the narrow definition of Level 1 and the Company's investment asset strategy to maximize investment returns, a relatively small portion of the Company's investment assets are classified in this category.

Inputs for instruments classified in Level 2 include quoted prices for similar assets or liabilities in active markets, quoted prices from those willing to trade in markets that are not active, or other inputs that are market observable or can be corroborated by market data for the term of the instrument.  Such other inputs include market interest rates and volatilities, spreads and yield curves. An instrument is classified in Level 2 if the Company determines that unobservable inputs are insignificant.

Fixed maturities and equity securities.Approximately91% of the Company's investments in fixed maturities and equity securities are classified in Level 2 including most public and private corporate debt and equity securities, federal agency and municipal bonds, non-government mortgage-backed securities and preferred stocks.  Because many fixed maturities do not trade daily, third-party pricing services and internal methods often use recent trades of securities with similar features and characteristics. When recent trades are not available, pricing models are used to determine these prices.  These models calculate fair values by discounting future cash flows at estimated market interest rates.  Such market rates are derived by calculating the appropriate spreads over comparable U.S. Treasury securities, based on the credit quality, industry and structure of the asset. Typical inputs and assumptions to pricing models include, but are not limited to, a combination of benchmark yields, reported trades, issuer spreads, liquidity, benchmark securities, bids, offers, reference data, and industry and economic events.  For mortgage-backed securities, inputs and assumptions may also include characteristics of the issuer, collateral attributes, prepayment speeds and credit rating.

Nearly all of these instruments are valued using recent trades or pricing models. Less than 1% of the fair value of investments classified in Level 2 represent foreign bonds thatare valued using a single unadjusted market-observable input derived by averaging multiple broker-dealer quotes, consistent with local market practice.

Short-term investments are carried at fair value which approximates cost. On a regular basis the Company compares market prices for these securities to recorded amounts to validate that current carrying amounts approximate exit prices. The short-term nature of the investments and corroboration of the reported amounts over the holding period support their classification in Level 2.

Other derivatives classified in Level 2 represent over-the-counter instruments such as interest rate and foreign currency swap contracts.  Fair values for these instruments are determined using market observable inputs including forward currency and interest rate curves and widely published market observable indices.  Credit risk related to the counterparty and the Company is considered when estimating the fair values of these derivatives.  However, the Company is largely protected by collateral arrangements with counterparties, and determined that no adjustment for credit risk was required as of June 30, 2014 or December 31, 2013.  Level 2 also includes exchange-traded interest rate swap contracts. Credit risk related to the clearinghouse counterparty and the Company is considered minimal when estimating the fair values of these derivatives because of upfront margin deposits and daily settlement requirements. The nature and use of these other derivatives are described in Note 9.

Certain inputs for instruments classified in Level 3 are unobservable (supported by little or no market activity) and significant to their resulting fair value measurement.  Unobservable inputs reflect the Company's best estimate of what hypothetical market participants would use to determine a transaction price for the asset or liability at the reporting date.

The Company classifies certain newly issued, privately-placed, complex or illiquid securities, as well as assets and liabilities relating to GMIB, in Level 3.

Fair values of other asset and mortgage-backed securities, corporate and government fixed maturities are primarily determined using pricing models that incorporate the specific characteristics of each asset and related assumptions including the investment type and structure, credit quality, industry and maturity date in comparison to current market indices, spreads and liquidity of assets with similar characteristics.  For other asset and mortgage-backed securities, inputs and assumptions for pricing may also include collateral attributes and prepayment speeds.  Recent trades in the subject security or similar securities are assessed when available, and the Company may also review published research, as well as the issuer's financial statements, in its evaluation. Approximately 10% of fixed maturities classified in Level 3 represent single, unadjusted, non-binding broker quotes that are not considered market observable. Certain private equity investments and subordinated corporate fixed maturities, representing approximately 10% of securities included in Level 3, are valued at transaction price in the absence of market data indicating a change in the estimated fair values.

The significant unobservable inputs used to value the following other asset and mortgage-backed securities are liquidity and weighting of credit spreads. When there is limited trading activity for the security, an adjustment for liquidity is made as of the measurement date that considers current market conditions, issuer circumstances and complexity of the security structure. An adjustment to weight credit spreads is needed to value a more complex bond structure with multiple underlying collateral and no standard market valuation technique. The weighting of credit spreads is primarily based on the underlying collateral's characteristics and their proportional cash flows supporting the bond obligations. The resulting wide range of unobservable adjustments in the table below is due to the varying liquidity and quality of the underlying collateral, ranging from high credit quality to below investment grade.

The significant unobservable input used to value the following corporate and government fixed maturities is an adjustment for liquidity. When there is limited trading activity for the security, an adjustment is needed to reflect current market conditions and issuer circumstances.

Significant increases in any of these inputs would result in a lower fair value measurement while decreases in these inputs would result in a higher fair value measurement. Generally, the unobservable inputs are not interrelated and a change in the assumption used for one unobservable input is not accompanied by a change in the other unobservable input. The tables do not include Level 3 securities when fair value and significant unobservable inputs were not developed directly by the Company, including securities using single, unadjusted non-binding broker quotes and securities valued at transaction price. See the preceding discussion regarding the Company's valuation processes and controls.

As discussed in Note 5, the Company effectively exited from this business in 2013. Although theseGMIB assets and liabilities must continue to be reported as derivatives at fair value, the only assumption that is expected to impact future shareholders' net income is the risk of non-performance. This assumption reflects a market participant's view of (a) the risk of the Company not fulfilling its GMIB obligations (GMIB liabilities) and (b) the credit risk that the reinsurers do not pay their obligations (GMIB assets).

The Company reports GMIB liabilities and assets as derivatives at fair value because cash flows of these liabilities and assets are affected by equity markets and interest rates, but are without significant life insurance risk and are settled in lump sum payments. Under the terms of these written and purchased contracts, the Company periodically receives and pays fees based on either contractholders' account values or deposits increased at a contractual rate. The Company will also pay and receive cash depending on changes in account values and interest rates when contractholders first elect to receive minimum income payments. The Company estimates the fair value of the assets and liabilities for GMIB contracts by calculating the results for many scenarios run through a model utilizing various assumptions that include non-performance risk, among other things.

The non-performance risk adjustment is incorporated by adding an additional spread to the discount rate in the calculation of both (a) the GMIB liabilities to reflect a market participant's view of the risk of the Company not fulfilling its GMIB obligations, and (b) the GMIB assets to reflect a market participant's view of the credit risk of the reinsurers, after considering collateral. Non-performance risk adjustments had an immaterial effect on shareholders' net income for the three months and six months ended June 30, 2014 and 2013.

Other assumptions that affect GMIB assets and liabilities include capital market assumptions (including market returns, interest rates and market volatilities of the underlying equity and bond mutual fund investments) and future annuitant behavior (including mortality, lapse, and annuity election rates). As certain assumptions used to estimate fair values for these contracts are largely unobservable (primarily related to future annuitant behavior), the Company classifies GMIB assets and liabilities in Level 3.

The Company regularly evaluates each of the assumptions used in establishing these assets and liabilities. Significant decreases in assumed lapse rates or spreads used to calculate non-performance risk, or increases in assumed annuity election rates would result in higher fair value measurements. A change in one of these assumptions is not necessarily accompanied by a change in another assumption.

GMIB liabilities are reported in the Company's Consolidated Balance Sheets in accounts payable, accrued expenses and other liabilities.  GMIB assets associated with these contracts represent net receivables in connection with reinsurance that the Company has purchased from three external reinsurers and are reported in the Company's Consolidated Balance Sheets in other assets, including other intangibles.

As noted in the tables above, total gains and losses included in shareholders' net income are reflected in the following captions in the Consolidated Statements of Income:

• Realized investment gains (losses) and net investment income for amounts related to fixed maturities and equity securities and realized investment gains (losses) for the impact of changes in non-performance risk related to GMIB assets and liabilities beginning February 4, 2013, similar to hedge ineffectiveness; and
• GMIB fair value (gain) loss for amounts related to GMIB assets and liabilities, except for the impact of changes in non-performance risk subsequent to February 4, 2013.

In the tables above, gains and losses included in other comprehensive income are reflected in net unrealized appreciation (depreciation) on securities in the Consolidated Statements of Comprehensive Income.

Reclassifications impacting Level 3 financial instruments are reported as transfers into or out of the Level 3 category as of the beginning of the quarter in which the transfer occurs. Therefore gains and losses in income only reflect activity for the periodthe instrument was classified in Level 3. 

Transfers into or out of the Level 3 category occur when unobservable inputs, such as the Company's best estimate of what a market participant would use to determine a current transaction price, become more or less significant to the fair value measurement. For the three months and six months ended June 30, 2014 and June 30, 2013, transfers between Level 2and Level 3 primarily reflect the change in significance of the unobservable inputs used to value certain public and private corporate bonds, principally related to liquidity of the securities and credit risk of the issuers.

Because GMIB reinsurance arrangements remain in effect at the reporting date, the Company has reflected the total gain or loss for the period as the total gain or loss included in income attributable to instruments still held at the reporting date.  However, the Company reduces the GMIB assets and liabilities resulting from these reinsurance arrangements when annuitants lapse, die, elect their benefit, or reach the age after which the right to elect their benefit expires.

Separate account assets in Level 1 primarily include exchange-listed equity securities.  Level 2 assets primarily include:

• corporate and structured bonds valued using recent trades of similar securities or pricing models that discount future cash flows at estimated market interest rates as described above; and
• actively-traded institutional and retail mutual fund investments and separate accounts priced using the daily net asset value which is the exit price.

Separate account assets classified in Level 3 include investments primarily in securities partnerships, real estate and hedge funds generally valued based on the separate account's ownership share of the equity of the investee including changes in the fair values of its underlying investments.

Some financial assets and liabilitiesare not carried at fair value each reporting period, but may be measured using fair value only under certain conditions, such as investments in real estate entities and commercial mortgage loans when they become impaired.

Commercial mortgage loans. The Company estimates the fair value of commercial mortgage loans generally by discounting the contractual cash flows at estimated market interest rates that reflect the Company's assessment of the credit quality of the loans. Market interest rates are derived by calculating the appropriate spread over comparable U.S. Treasury rates, based on the property type, quality rating and average life of the loan. The quality ratings reflect the relative risk of the loan, considering debt service coverage, the loan-to-value ratio and other factors. Fair values of impaired mortgage loans are based on the estimated fair value of the underlying collateral generally determined using an internal discounted cash flow model.The fair value measurements were classified in Level 3 because the cash flow models incorporate significant unobservable inputs.

Contractholder deposit funds, excluding universal life products.Generally, these funds do not have stated maturities. Approximately 60% of these balances can be withdrawn by the customer at any time without prior notice or penalty. The fair value for these contracts is the amount estimated to be payable to the customer as of the reporting date, which is generally the carrying value. Most of the remaining contractholder deposit funds are reinsured by the buyers of the individual life and annuity and retirement benefits businesses. The fair value for these contracts is determined using the fair value of these buyers' assets supporting these reinsured contracts. The Company had reinsurance recoverables equal to the carrying values of these reinsured contracts. These instruments were classified in Level 3 because certain inputs are unobservable (supported by little or no market activity) and significant to their resulting fair value measurement.

Long-term debt, including current maturities, excluding capital leases.The fair value of long-term debt is based on quoted market prices for recent trades. When quoted market prices are not available, fair value is estimated using a discounted cash flow analysis and the Company's estimated current borrowing rate for debt of similar terms and remaining maturities.These measurements were classified in Level 2 because the fair values are based on quoted market prices or other inputs that are market observable or can be corroborated by market data.

Derivative Financial Instruments

Accounting policy. Using cash flow hedge accounting, fair values are reported in other long-term investments or other liabilities. Changes in fair value are reported in accumulated other comprehensive income and amortized into net investment income or reported in other realized investment gains and losses as interest or principal payments are received.

Cash flows. Under the terms of these various contracts, the Company periodically exchanges cash flows between variable and fixed interest rates and/or between two currencies for both principal and interest. Foreign currency and combination swaps are primarily Euros,Australian dollars,Canadian dollars, Japanese yen, and British pounds, and have terms for periods of up to seven years. Net interest cash flows are reported in operating activities.

Accounting Policy. Using fair value hedge accounting, the fair values of the swap contracts are reported in other assets or other liabilities. As the critical terms of these swaps match those of the long-term debt being hedged, the carrying value of the hedged debt is adjusted to reflect changes in its fair value driven by LIBOR. The effects of those adjustments on other operating expense are offset by the effects of corresponding changes in the swaps' fair value. Interest expense includes the difference between the variable and fixed interest rates.

Cash flows. Under the terms of these contracts, the Company provides upfront margin and settles fair value changes and net interest between variable and fixed interest rates daily with the clearinghouse. Net interest cash flows are reported in operating activities.

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Fair Value Measurements - Changes in Level 3 Financial Liabilities (Details) (Derivative Financial Instruments, Liabilities [Member], Guaranteed Minimum Income Benefit [Member], USD $) In Millions, unless otherwise specified	3 Months Ended				6 Months Ended
	Jun. 30, 2014		Jun. 30, 2013		Jun. 30, 2014		Jun. 30, 2013
Derivative Financial Instruments, Liabilities [Member] | Guaranteed Minimum Income Benefit [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ (794)		$ (1,099)		$ (741)		$ (1,170)
Gains (losses) included in shareholders' net income:
GMIB fair value gain/(loss)	(53)		156		(130)		205
Other	(2)		0		10		0
Total gains (losses) included in shareholders' net income	(55)		156		(120)		205
Gains (losses) included in other comprehensive income	0		0		0		0
Gains (losses) required to adjust future policy benefits for settlement annuities	0	[1]	0	[1]	0	[1]	0	[1]
Purchases, issuances, settlements:
Purchases	0		0		0		0
Sales	0		0		0		0
Settlements	10		21		22		43
Total purchases, sales, and settlements	10		21		22		43
Transfers into/(out of) Level 3:
Transfers into Level 3	0		0		0		0
Transfers out of Level 3	0		0		0		0
Transfers into/(out of) Level 3	0		0		0		0
Ending balance	(839)		(922)		(839)		(922)
Total gains (losses) included in income attributable to instruments held at the reporting date	$ (55)		$ 156		$ (120)		$ 205

[1] Amounts do not accrue to shareholders.

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Reinsurance - Guaranteed Minimum Death Benefits Account Value, Net Amount at Risk and Contractholders (Details) (Variable Annuity [Member], Guaranteed Minimum Death Benefit [Member], USD $) In Billions, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2014 Contractholders	Dec. 31, 2013 Contractholders
Variable Annuity [Member] | Guaranteed Minimum Death Benefit [Member]
Guaranteed Minimum Death Benefits Coverage in Force, Contract Holders, and Underlying Mutual Fund Value [Line Items]
Death benefit coverage in force	$ 2.8	$ 3.0
Total contract holders	373,000	390,000
Aggregate value of underlying mutual fund investments for GMDB contracts	$ 13.8	$ 14.1

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Contingencies and Other Matters - Financial Guarantees (Details) (USD $)	6 Months Ended
	Jun. 30, 2014
Market Value Guarantee [Member]
Guarantee Obligations [Line Items]
Guarantee Obligations, Maximum Exposure, Undiscounted	$ 41,000,000
Guarantee Obligations, Current Carrying Value	6,000,000
Market Value Guarantee [Member] | Expiring In 2016 [Member]
Guarantee Obligations [Line Items]
Guarantee Obligations, Maximum Exposure, Undiscounted	16,000,000
Market Value Guarantee [Member] | Expiring In 2025 [Member]
Guarantee Obligations [Line Items]
Guarantee Obligations, Maximum Exposure, Undiscounted	25,000,000
Indemnification Guarantee [Member]
Guarantee Obligations [Line Items]
Guarantee Obligations, Maximum Exposure, Undiscounted	294,000,000
Guarantee Obligations, Current Carrying Value	0
Guarantee Type, Other [Member] | Retirement And Life Insurance Contracts [Member]
Guarantee Obligations [Line Items]
Guarantee Obligations, Current Carrying Value	500,000,000
Separate Accounts Liability Sold Business Percent Reinsured	13.00%
Guarantee Type, Other [Member] | Variable Annuity [Member] | Guaranteed Minimum Income Benefit [Member]
Guarantee Obligations [Line Items]
Guarantee Obligations, Maximum Exposure, Undiscounted	742,000,000
Annuitization election period	30 days
Underlying mutual fund investment values for Guaranteed Minimum Income Benefits	$ 1,200,000,000

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Recent Accounting Pronouncements (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2014
New Accounting Pronouncements And Changes In Accounting Principles [Abstract]
Health Care Reform Industry Assessment Fee Liability	$ 245
Health Care Reform Industry Assessment Fee Expense	$ 122

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Fair Value Measurements - Separate Account Assets (Details) (USD $) In Millions, unless otherwise specified					3 Months Ended				6 Months Ended
	Jun. 30, 2014		Dec. 31, 2013		Jun. 30, 2014 Separate Account Assets [Member]		Jun. 30, 2013 Separate Account Assets [Member]		Jun. 30, 2014 Separate Account Assets [Member]		Jun. 30, 2013 Separate Account Assets [Member]		Jun. 30, 2014 Pension Benefits [Member]	Dec. 31, 2013 Pension Benefits [Member]	Jun. 30, 2014 Fair Value Inputs Level 1 [Member]	Dec. 31, 2013 Fair Value Inputs Level 1 [Member]	Jun. 30, 2014 Fair Value Inputs Level 2 [Member]	Dec. 31, 2013 Fair Value Inputs Level 2 [Member]	Jun. 30, 2014 Fair Value Inputs Level 3 [Member]	Dec. 31, 2013 Fair Value Inputs Level 3 [Member]	Jun. 30, 2014 Fair Value Inputs Level 3 [Member] Pension Benefits [Member]	Dec. 31, 2013 Fair Value Inputs Level 3 [Member] Pension Benefits [Member]
Financial assets and financial liabilities carried at fair value [Line Items]
Guaranteed separate accounts	$ 540		$ 548												$ 269	$ 264	$ 271	$ 284	$ 0	$ 0
Non-guaranteed separate accounts	8,103	[1]	7,704	[2]									4,000	3,800	1,851	1,844	5,178	4,825	1,074	1,035	1,020	983
Total separate account assets	8,643		8,252												2,120	2,108	5,449	5,109	1,074	1,035
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning balance					1,069		1,011		1,035		1,005
Policyholder gains (losses)					23	[3]	22	[3]	55	[4]	29	[4]
Purchases, issuances, settlements:
Purchases					80		57		124		88
Sales					(2)		0		(2)		0
Settlements					(97)		(39)		(144)		(69)
Total purchases, sales, settlements					(19)		18		(22)		19
Transfers into/(out of) Level 3:
Transfers into Level 3					6		0		13		0
Transfers out of Level 3					(5)		(2)		(7)		(4)
Total transfers into/(out of) Level 3					1		(2)		6		(4)
Ending balance					1,074		1,049		1,074		1,049
Policyholder Gains Losses Attributable To Instruments Still Held					$ 23		$ 22		$ 55		$ 29

[1] As of June 30, 2014, non-guaranteed separate accounts included $4.0 billion in assets supporting the Company's pension plans, including $1,020 million classified in Level 3.

[2] As of December 31, 2013, non-guaranteed separate accounts included $3.8 billion in assets supporting the Company's pension plans, including $983 million classified in Level 3.

[3] Included in this amount are gains of $23 million attributable to instruments still held at June 30, 2014 and gains of $22 million attributable to instruments still held at June 30, 2013.

[4] Included in this amount are gains of $55 million attributable to instruments still held at June 30, 2014 and gains of $29 million attributable to instruments still held at June 30, 2013.

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Variable Interest Entities (Details)	6 Months Ended
	Jun. 30, 2014
Variable Interest Entities Text Details [Abstract]
Variable Interest Entity Nonexistence Flag	Yes

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Investments - Credit Risk Profile, Commercial Mortgage Loans (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	$ 2,217	$ 2,252
Weighted Average [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Debt service coverage ratio, commercial mortgage loans	1.64	1.62
Loan-to-value ratio, commercial mortgage loans	63.00%	64.00%
Loan To Value Ratio Below 50 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	346	320
Loan To Value Ratio Below 50 Percent [Member] | Maximum [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Loan-to-value ratio, commercial mortgage loans	50.00%	50.00%
Loan To Value Ratio 50 Percent To 59 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	856	730
Loan To Value Ratio 50 Percent To 59 Percent [Member] | Maximum [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Loan-to-value ratio, commercial mortgage loans	59.00%	59.00%
Loan To Value Ratio 50 Percent To 59 Percent [Member] | Minimum [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Loan-to-value ratio, commercial mortgage loans	50.00%	50.00%
Loan To Value Ratio 60 Percent To 69 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	403	507
Loan To Value Ratio 60 Percent To 69 Percent [Member] | Maximum [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Loan-to-value ratio, commercial mortgage loans	69.00%	69.00%
Loan To Value Ratio 60 Percent To 69 Percent [Member] | Minimum [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Loan-to-value ratio, commercial mortgage loans	60.00%	60.00%
Loan To Value Ratio 70 Percent To 79 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	234	192
Loan To Value Ratio 70 Percent To 79 Percent [Member] | Maximum [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Loan-to-value ratio, commercial mortgage loans	79.00%	79.00%
Loan To Value Ratio 70 Percent To 79 Percent [Member] | Minimum [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Loan-to-value ratio, commercial mortgage loans	70.00%	70.00%
Loan To Value Ratio 80 Percent To 89 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	161	312
Loan To Value Ratio 80 Percent To 89 Percent [Member] | Maximum [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Loan-to-value ratio, commercial mortgage loans	89.00%	89.00%
Loan To Value Ratio 80 Percent To 89 Percent [Member] | Minimum [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Loan-to-value ratio, commercial mortgage loans	80.00%	80.00%
Loan To Value Ratio 90 Percent To 100 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	217	191
Loan To Value Ratio 90 Percent To 100 Percent [Member] | Maximum [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Loan-to-value ratio, commercial mortgage loans	100.00%	100.00%
Loan To Value Ratio 90 Percent To 100 Percent [Member] | Minimum [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Loan-to-value ratio, commercial mortgage loans	90.00%	90.00%
Debt Service Coverage Ratio 1.30x Or Greater [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	1,506	1,477
Debt Service Coverage Ratio 1.30x Or Greater [Member] | Minimum [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Debt service coverage ratio, commercial mortgage loans	1.30	1.30
Debt Service Coverage Ratio 1.30x Or Greater [Member] | Loan To Value Ratio Below 50 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	340	314
Debt Service Coverage Ratio 1.30x Or Greater [Member] | Loan To Value Ratio 50 Percent To 59 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	765	581
Debt Service Coverage Ratio 1.30x Or Greater [Member] | Loan To Value Ratio 60 Percent To 69 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	327	438
Debt Service Coverage Ratio 1.30x Or Greater [Member] | Loan To Value Ratio 70 Percent To 79 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	68	79
Debt Service Coverage Ratio 1.30x Or Greater [Member] | Loan To Value Ratio 80 Percent To 89 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	6	65
Debt Service Coverage Ratio 1.30x Or Greater [Member] | Loan To Value Ratio 90 Percent To 100 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	0	0
Debt Service Coverage Ratio 1.20x To 1.29x [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	243	302
Debt Service Coverage Ratio 1.20x To 1.29x [Member] | Maximum [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Debt service coverage ratio, commercial mortgage loans	1.29	1.29
Debt Service Coverage Ratio 1.20x To 1.29x [Member] | Minimum [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Debt service coverage ratio, commercial mortgage loans	1.20	1.20
Debt Service Coverage Ratio 1.20x To 1.29x [Member] | Loan To Value Ratio Below 50 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	0	0
Debt Service Coverage Ratio 1.20x To 1.29x [Member] | Loan To Value Ratio 50 Percent To 59 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	91	131
Debt Service Coverage Ratio 1.20x To 1.29x [Member] | Loan To Value Ratio 60 Percent To 69 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	0	16
Debt Service Coverage Ratio 1.20x To 1.29x [Member] | Loan To Value Ratio 70 Percent To 79 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	52	113
Debt Service Coverage Ratio 1.20x To 1.29x [Member] | Loan To Value Ratio 80 Percent To 89 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	97	42
Debt Service Coverage Ratio 1.20x To 1.29x [Member] | Loan To Value Ratio 90 Percent To 100 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	3	0
Debt Service Coverage Ratio 1.10x To 1.19x [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	103	121
Debt Service Coverage Ratio 1.10x To 1.19x [Member] | Maximum [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Debt service coverage ratio, commercial mortgage loans	1.19	1.19
Debt Service Coverage Ratio 1.10x To 1.19x [Member] | Minimum [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Debt service coverage ratio, commercial mortgage loans	1.10	1.10
Debt Service Coverage Ratio 1.10x To 1.19x [Member] | Loan To Value Ratio Below 50 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	0	0
Debt Service Coverage Ratio 1.10x To 1.19x [Member] | Loan To Value Ratio 50 Percent To 59 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	0	0
Debt Service Coverage Ratio 1.10x To 1.19x [Member] | Loan To Value Ratio 60 Percent To 69 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	15	29
Debt Service Coverage Ratio 1.10x To 1.19x [Member] | Loan To Value Ratio 70 Percent To 79 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	33	0
Debt Service Coverage Ratio 1.10x To 1.19x [Member] | Loan To Value Ratio 80 Percent To 89 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	0	34
Debt Service Coverage Ratio 1.10x To 1.19x [Member] | Loan To Value Ratio 90 Percent To 100 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	55	58
Debt Service Coverage Ratio 1.00x To 1.09x [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	6	102
Debt Service Coverage Ratio 1.00x To 1.09x [Member] | Maximum [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Debt service coverage ratio, commercial mortgage loans	1.09	1.09
Debt Service Coverage Ratio 1.00x To 1.09x [Member] | Minimum [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Debt service coverage ratio, commercial mortgage loans	1.00	1.00
Debt Service Coverage Ratio 1.00x To 1.09x [Member] | Loan To Value Ratio Below 50 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	6	6
Debt Service Coverage Ratio 1.00x To 1.09x [Member] | Loan To Value Ratio 50 Percent To 59 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	0	18
Debt Service Coverage Ratio 1.00x To 1.09x [Member] | Loan To Value Ratio 60 Percent To 69 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	0	0
Debt Service Coverage Ratio 1.00x To 1.09x [Member] | Loan To Value Ratio 70 Percent To 79 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	0	0
Debt Service Coverage Ratio 1.00x To 1.09x [Member] | Loan To Value Ratio 80 Percent To 89 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	0	28
Debt Service Coverage Ratio 1.00x To 1.09x [Member] | Loan To Value Ratio 90 Percent To 100 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	0	50
Debt Service Coverage Ratio Less Than 1.00x [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	359	250
Debt Service Coverage Ratio Less Than 1.00x [Member] | Maximum [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Debt service coverage ratio, commercial mortgage loans	1.00	1.00
Debt Service Coverage Ratio Less Than 1.00x [Member] | Loan To Value Ratio Below 50 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	0	0
Debt Service Coverage Ratio Less Than 1.00x [Member] | Loan To Value Ratio 50 Percent To 59 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	0	0
Debt Service Coverage Ratio Less Than 1.00x [Member] | Loan To Value Ratio 60 Percent To 69 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	61	24
Debt Service Coverage Ratio Less Than 1.00x [Member] | Loan To Value Ratio 70 Percent To 79 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	81	0
Debt Service Coverage Ratio Less Than 1.00x [Member] | Loan To Value Ratio 80 Percent To 89 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	58	143
Debt Service Coverage Ratio Less Than 1.00x [Member] | Loan To Value Ratio 90 Percent To 100 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	$ 159	$ 83

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Fair Value Measurements - Level 2 Financial Assets and Financial Liabilities (Details)	Jun. 30, 2014
Fair Value Disclosures [Abstract]
Percentage of investments in fixed maturities and equity securities classified as Level 2	91.00%
Maximum percentage of investments classified in Level 2 representing foreign bonds priced using unadjusted broker quotes	1.00%

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Basis of Presentation

6 Months Ended

Jun. 30, 2014

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Basis of presentation

Note 1-- Basis of Presentation

Cigna Corporation and its subsidiaries (either individually or collectively referred to as “Cigna”, “the Company”, “we”, or “our”) is a global health services organization with a mission to help its customers improve their health, well-being and sense of security. Its insurance subsidiaries are major providers of medical, dental, disability, life and accident insurance and related products and services, the majority of which are offered through employers and other groups (e.g. governmental and non‐governmental organizations, unions and associations). Cigna also offers Medicare and Medicaid products and health, life and accident insurance coverages primarily to individuals in the U.S. and selected international markets. In addition to its ongoing operations described above, Cigna also has certain run‐off operations.

The Consolidated Financial Statements include the accounts of Cigna Corporation and its subsidiaries. Intercompany transactions and accounts have been eliminated in consolidation.  These Consolidated Financial Statements were prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Amounts recorded in the Consolidated Financial Statements necessarily reflect management's estimates and assumptions about medical costs, investment valuation, interest rates and other factors. Significant estimates are discussed throughout these Notes; however, actual results could differ from those estimates. The impact of a change in estimate is generally included in earnings in the period of adjustment. Certain reclassifications have been made to prior year amounts to conform to the current presentation.

These interim Consolidated Financial Statements are unaudited but include all adjustments (including normal recurring adjustments) necessary, in the opinion of management, for a fair statement of financial position and results of operations for the periods reported. The interim Consolidated Financial Statements and notes should be read in conjunction with the Consolidated Financial Statements and Notes included in the Company's 2013 Form 10-K.The preparation of interim Consolidated Financial Statements necessarily relies heavily on estimates. This and certain other factors, including the seasonal nature of portions of the health care and related benefits business as well as competitive and other market conditions, call for caution in estimating full year results based on interim results of operations.

Beginning in the first quarter of 2014, the Company combined the results of its run-off reinsurance business with Other Operations for segment reporting purposes. Prior year information has been conformed to the current year presentation.See Note 15 for additional information.

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Investments - Problem and Potential Problem Commercial Mortgage Loans (Details) (Mortgage Loans on Real Estate [Member], USD $) In Millions, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Mortgage Loans on Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Restructured problem loan, pre-modification		$ 31
Restructured problem loan, number of contracts		2
Restructured problem loan, post-modification		31
Restructured problem loan, required reserves		0
Restructured problem loan, number of contracts - post-modification		2
Maximum past due days that the mortgage loans are considered current	59 days
Debt service coverage ratio threshold, below which mortgage loans are considered potential problems	1.0
Loan-to-value ratio threshold, above which mortgage loans are considered potential problems	100.00%
Minimum past due days that mortgage loans are considered potential problems	30 days
Maximum past due days that mortgage loans are considered potential problems	60 days
Problem and potential problem mortgage loans	$ 209	$ 158

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Reinsurance - Effects of Reinsurance (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Effects of Reinsurance [Line Items]
Ceded premiums and fees	$ 128	$ 149	$ 269	$ 274
Reinsurance recoveries	157	162	338	(12)
Individual Life Insurance And Annuity [Member]
Effects of Reinsurance [Line Items]
Ceded premiums and fees	44	45	89	91
Reinsurance recoveries	69	94	168	182
Other Product Segments [Member]
Effects of Reinsurance [Line Items]
Ceded premiums and fees	84	104	180	183
Reinsurance recoveries	$ 88	$ 68	$ 170	$ (194)

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Organizational Effiency Plans (Tables)

6 Months Ended

Jun. 30, 2014

Organizational Efficiency Plan [Abstract]

Organizational Efficiency Rollforward

(In millions)		Severance		Real estate		Total
Balance, January 1, 2013	$	67	$	4	$	71
Fourth quarter 2013 charge		47		13		60
Less: 2013 Payments		46		4		50
Balance, December 31, 2013		68		13		81
Less: First quarter 2014 payments		11		1		12
Less: Second quarter 2014 payments		7		1		8
Balance, June 30, 2014	$	50	$	11	$	61

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Reinsurance (Tables)

6 Months Ended

Jun. 30, 2014

Effects of Reinsurance [Line Items]

GMDB reserve activity table

	For the period ended
	June 30,		December 31,
(In millions)	2014		2013
Balance at January 1	$	1,396	$	1,090
Add: Unpaid claims		18		24
Less: Reinsurance and other amounts recoverable		1,317		42
Balance at January 1, net		97		1,072
Add: Incurred benefits		2		699
Less: Paid benefits (including the $1,647 payment in 2013 for the Berkshire reinsurance transaction)		-		1,674
Ending balance, net		99		97
Less: Unpaid claims		19		18
Add: Reinsurance and other amounts recoverable		1,234		1,317
Ending balance	$	1,314	$	1,396

Effects of Reinsurance

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions)	2014		2013		2014		2013
Ceded premiums and fees
Individual life insurance and annuity business sold	$	44	$	45	$	89	$	91
Other		84		104		180		183
Total	$	128	$	149	$	269	$	274
Reinsurance recoveries
Individual life insurance and annuity business sold	$	69	$	94	$	168	$	182
Other		88		68		170		(194)
Total	$	157	$	162	$	338	$	(12)

Reinsurance Recoverables

(In millions)
	Line of Business	Reinsurer(s)	June 30, 2014		December 31, 2013		Collateral and Other Terms at June 30, 2014
	GMDB	Berkshire	$	1,195	$	1,276	100% secured by assets in a trust.
		Other		40		41	97% secured by assets in a trust or letter of credit.
	Individual Life and Annuity (sold)	Lincoln National Life and Lincoln Life &Annuity of New York		3,855		3,905	Both companies' ratings are sufficient to avoid triggering a contractual obligation to fully secure the outstanding balance.
	Retirement Benefits Business (sold)	Prudential Retirement Insurance and Annuity		1,148		1,200	100% secured by assets in a trust.
	Supplemental Benefits business	Great American Life		344		363	100% secured by assets in a trust.
	Global Health Care, Global Supplemental Benefits, Group Disability and Life	Various		444		407	Recoverables from more than 80 reinsurers used in the ordinary course of business. Balances range from less than $1 million up to $70 million, with 12% secured by assets in trusts or letters of credit.
	Other run-off reinsurance	Various		106		107	89% of this balance is secured by assets in a trust.
	Total reinsurance recoverables		$	7,132	$	7,299

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Investments - Fixed Maturities by Maturity Periods (Details) (USD $) In Millions, unless otherwise specified	Jun. 30, 2014
Amortized Cost:
Due in one year or less	$ 1,161
Due after one year through five years	5,530
Due after five years through ten years	6,285
Due after ten years	2,785
Mortgage and other asset-backed securities	837
Total amortized cost	16,598
Fair Value:
Due in one year or less	1,180
Due after one year through five years	5,962
Due after five years through ten years	6,701
Due after ten years	3,535
Mortgage and other asset-backed securities	943
Total fair value	$ 18,321

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Reinsurance - Reinsurance Recoverables (Details) (USD $) In Millions, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Ceded Credit Risk [Line Items]
Reinsurance recoverables	$ 7,132	$ 7,299
Guaranteed Minimum Income Benefit [Member]
Ceded Credit Risk [Line Items]
Number of external reinsurers	3	3
Guaranteed Minimum Death Benefits (GMDB) [Member] | Berkshire Hathway Life Insurance Company Of Nebraska [Member] | Guaranteed Minimum Death Benefit [Member]
Ceded Credit Risk [Line Items]
Reinsurance recoverables	1,195	1,276
Guaranteed Minimum Death Benefits (GMDB) [Member] | Berkshire Hathway Life Insurance Company Of Nebraska [Member] | Guaranteed Minimum Death Benefit [Member] | Ceded Credit Risk Secured [Member]
Ceded Credit Risk [Line Items]
Reinsurance recoverables percentage of total	100.00%
Guaranteed Minimum Death Benefits (GMDB) [Member] | Other Retrocessionaires [Member] | Guaranteed Minimum Death Benefit [Member]
Ceded Credit Risk [Line Items]
Reinsurance recoverables	40	41
Guaranteed Minimum Death Benefits (GMDB) [Member] | Other Retrocessionaires [Member] | Guaranteed Minimum Death Benefit [Member] | Ceded Credit Risk Secured [Member]
Ceded Credit Risk [Line Items]
Reinsurance recoverables percentage of total	97.00%
Individual Life Insurance And Annuity [Member] | The Lincoln National Life Insurance Company And Lincoln Life And Annuity Of New York [Member]
Ceded Credit Risk [Line Items]
Reinsurance recoverables	3,855	3,905
Retirement Benefits [Member] | Prudential Retirement Insurance And Annuity Company [Member]
Ceded Credit Risk [Line Items]
Reinsurance recoverables	1,148	1,200
Retirement Benefits [Member] | Prudential Retirement Insurance And Annuity Company [Member] | Ceded Credit Risk Secured [Member]
Ceded Credit Risk [Line Items]
Reinsurance recoverables percentage of total	100.00%
Supplemental Benefits business (resulting from the acquistion) [Member] | Great American Life Insurance Company [Member]
Ceded Credit Risk [Line Items]
Reinsurance recoverables	344	363
Supplemental Benefits business (resulting from the acquistion) [Member] | Great American Life Insurance Company [Member] | Ceded Credit Risk Secured [Member]
Ceded Credit Risk [Line Items]
Reinsurance recoverables percentage of total	100.00%
Ongoing Operations [Member] | Other Retrocessionaires [Member]
Ceded Credit Risk [Line Items]
Reinsurance recoverables	444	407
Number of external reinsurers	80
Maximum reinsurance recoverable from a single reinsurer.	70
Reinsurance recoverables percentage of total	12.00%
Ongoing Operations [Member] | Other Retrocessionaires [Member] | Maximum [Member]
Ceded Credit Risk [Line Items]
Minimum reinsurance recoverable balance from a single reinsurer	1
Other run-off reinsurance [Member] | Other Retrocessionaires [Member]
Ceded Credit Risk [Line Items]
Reinsurance recoverables	106	107
Other run-off reinsurance [Member] | Other Retrocessionaires [Member] | Ceded Credit Risk Secured [Member]
Ceded Credit Risk [Line Items]
Reinsurance recoverables percentage of total	89.00%
GMIB Assets (reported in Other Assets) [Member] | Berkshire Hathway Life Insurance Company Of Nebraska [Member] | Guaranteed Minimum Income Benefit [Member]
Ceded Credit Risk [Line Items]
GMIB Assets (reported in Other Assets)	401	352
GMIB Assets (reported in Other Assets) [Member] | Berkshire Hathway Life Insurance Company Of Nebraska [Member] | Guaranteed Minimum Income Benefit [Member] | Ceded Credit Risk Secured [Member]
Ceded Credit Risk [Line Items]
GMIB Assets percentage of total	100.00%
GMIB Assets (reported in Other Assets) [Member] | Other Retrocessionaires [Member] | Guaranteed Minimum Income Benefit [Member]
Ceded Credit Risk [Line Items]
GMIB Assets (reported in Other Assets)	$ 462	$ 399
Number of external reinsurers	2
GMIB Assets (reported in Other Assets) [Member] | Other Retrocessionaires [Member] | Guaranteed Minimum Income Benefit [Member] | Ceded Credit Risk Secured [Member]
Ceded Credit Risk [Line Items]
GMIB Assets percentage of total	40.00%

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2014

Fair Value Disclosures [Abstract]

Financial assets and liabilities carried at fair value

June 30, 2014
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Financial assets at fair value:
Fixed maturities:
Federal government and agency	$	583	$	669	$	-	$	1,252
State and local government		-		2,023		-		2,023
Foreign government		-		1,677		29		1,706
Corporate		-		11,897		500		12,397
Federal agency mortgage-backed		-		69		-		69
Other mortgage-backed		-		77		1		78
Other asset-backed		-		252		544		796
Total fixed maturities (1)		583		16,664		1,074		18,321
Equity securities		1		82		48		131
Subtotal		584		16,746		1,122		18,452
Short-term investments		-		232		-		232
GMIB assets (2)		-		-		863		863
Other derivative assets (3)		-		2		-		2
Total financial assets at fair value, excluding separate accounts	$	584	$	16,980	$	1,985	$	19,549
Financial liabilities at fair value:
GMIB liabilities	$	-	$	-	$	839	$	839
Other derivative liabilities (3)		-		17		-		17
Total financial liabilities at fair value	$	-	$	17	$	839	$	856

(1) Fixed maturities included $690 million of net appreciation required to adjust future policy benefits for the run-off settlement annuity business including $78 million of appreciation for securities classified in Level 3.

(2) The GMIB assets represent retrocessional contracts in place from three external reinsurers that cover the exposures on these contracts.See Note 5 for additional information.

(3) Other derivative assets and other derivative liabilities reflected foreign currency and interest rate swaps qualifying as cash flow hedges. See Note 9 for additional information.

December 31, 2013
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Financial assets at fair value:
Fixed maturities:
Federal government and agency	$	297	$	583	$	-	$	880
State and local government		-		2,144		-		2,144
Foreign government		-		1,421		23		1,444
Corporate		-		10,476		505		10,981
Federal agency mortgage-backed		-		76		-		76
Other mortgage-backed		-		76		1		77
Other asset-backed		-		282		602		884
Total fixed maturities (1)		297		15,058		1,131		16,486
Equity securities		8		74		59		141
Subtotal		305		15,132		1,190		16,627
Short-term investments		-		631		-		631
GMIB assets (2)		-		-		751		751
Other derivative assets (3)		-		3		-		3
Total financial assets at fair value, excluding separate accounts	$	305	$	15,766	$	1,941	$	18,012
Financial liabilities at fair value:
GMIB liabilities	$	-	$	-	$	741	$	741
Other derivative liabilities (3)		-		16		-		16
Total financial liabilities at fair value	$	-	$	16	$	741	$	757

(1) Fixed maturities included $458 million of net appreciation required to adjust future policy benefits for the run-off settlement annuity business including $60million of appreciation for securities classified in Level 3.

(2) The GMIB assets represented retrocessional contracts in place from three external reinsurers that cover the exposures on these contracts. See Note 5 for additional information.

(3) Other derivative assets reflected interest rate and foreign currency swaps qualifying as cash flow hedges. Other derivative liabilities included $15 million of interest rate and foreign currency swaps qualifying as cash flow hedges and $1 million of interest rate and foreign currency swaps not designated as accounting hedges. See Note 9 for additional information.

Level 3 fixed maturities and equity securities priced using significant unobservable inputs

	June 30,		December 31,
(In millions)	2014		2013
Other asset and mortgage-backed securities - valued using pricing models	$	545	$	603
Corporate and government fixed maturities - valued using pricing models		456		417
Corporate fixed maturities - valued at transaction price		73		111
Equity securities - valued at transaction price		48		59
Total	$	1,122	$	1,190

Level 3 fixed maturities and equity securities priced using significant unobservable inputs developed directly by the Company

As of June 30, 2014			Unobservable Input	Unobservable Adjustment to Discount Rates Range (Weighted Average) in Basis Points
(In millions except basis points)		Fair Value
Other asset and mortgage-backed securities	$	537	Liquidity	40-500 (160)
			Weighting of credit spreads	130-2,650 (250)
Corporate and government fixed maturities	$	391	Liquidity	80-390 (180)

As of December 31, 2013			Unobservable Input	Unobservable Adjustment to Discount Rates Range (Weighted Average) in Basis Points
(In millions except basis points)		Fair Value
Other asset and mortgage-backed securities	$	593	Liquidity	60 - 620 (170)
			Weighting of credit spreads	120 - 2,090 (290)
Corporate and government fixed maturities	$	305	Liquidity	80 - 370 (200)

Changes in level 3 financial assets and liabilities carried at fair value

For the Three Months Ended June 30, 2014
	Fixed Maturities & Equity Securities		GMIB Assets		GMIB Liabilities		GMIB Net
(In millions)
Balance at April 1, 2014	$	1,198	$	815	$	(794)	$	21
Gains (losses) included in shareholders' net income:
GMIB fair value gain/(loss)		-		53		(53)		-
Other		2		3		(2)		1
Total gains (losses) included in shareholders' net income		2		56		(55)		1
Gains included in other comprehensive income		9		-		-		-
Gains required to adjust future policy benefits for settlement annuities (1)		20		-		-		-
Purchases, sales and settlements:
Purchases		53		-		-		-
Sales		(91)		-		-		-
Settlements		(46)		(8)		10		2
Total purchases, sales and settlements		(84)		(8)		10		2
Transfers into/(out of) Level 3:
Transfers into Level 3		30		-		-		-
Transfers out of Level 3		(53)		-		-		-
Total transfers into/(out of) Level 3		(23)		-		-		-
Balance at June 30, 2014	$	1,122	$	863	$	(839)	$	24
Total gains (losses) included in shareholders' net income attributable
to instruments held at the reporting date	$	1	$	56	$	(55)	$	1
(1) Amounts do not accrue to shareholders.
For the Three Months Ended June 30, 2013
	Fixed Maturities & Equity Securities		GMIB Assets		GMIB Liabilities		GMIB Net
(In millions)
Balance at April 1, 2013	$	1,288	$	1,117	$	(1,099)	$	18
Gains (losses) included in shareholders' net income:
GMIB fair value gain/(loss)		-		(156)		156		-
Other		4		1		-		1
Total gains (losses) included in shareholders' net income		4		(155)		156		1
Losses included in other comprehensive income		(16)		-		-		-
Losses required to adjust future policy benefits for settlement annuities (1)		(33)		-		-		-
Purchases, sales and settlements:
Purchases		35		-		-		-
Sales		(18)		-		-		-
Settlements		(10)		(17)		21		4
Total purchases, sales and settlements		7		(17)		21		4
Transfers into/(out of) Level 3:
Transfers into Level 3		15		-		-		-
Transfers out of Level 3		(56)		-		-		-
Total transfers into/(out of) Level 3		(41)		-		-		-
Balance at June 30, 2013	$	1,209	$	945	$	(922)	$	23
Total gains (losses) included in shareholders' net income attributable
to instruments held at the reporting date	$	2	$	(155)	$	156	$	1
(1) Amounts do not accrue to shareholders.

For the Six Months Ended June 30, 2014
	Fixed Maturities & Equity Securities		GMIB Assets		GMIB Liabilities		GMIB Net
(In millions)
Balance at January 1, 2014	$	1,190	$	751	$	(741)	$	10
Gains (losses) included in shareholders' net income:
GMIB fair value gain/(loss)		-		130		(130)		-
Other		14		2		10		12
Total gains (losses) included in shareholders' net income		14		132		(120)		12
Gains included in other comprehensive income		17		-		-		-
Gains required to adjust future policy benefits for settlement annuities (1)		42		-		-		-
Purchases, sales and settlements:
Purchases		77		-		-		-
Sales		(115)		-		-		-
Settlements		(107)		(20)		22		2
Total purchases, sales and settlements		(145)		(20)		22		2
Transfers into/(out of) Level 3:
Transfers into Level 3		154		-		-		-
Transfers out of Level 3		(150)		-		-		-
Total transfers into/(out of) Level 3		4		-		-		-
Balance at June 30, 2014	$	1,122	$	863	$	(839)	$	24
Total gains (losses) included in shareholders' net income attributable
to instruments held at the reporting date	$	2	$	132	$	(120)	$	12
(1) Amounts do not accrue to shareholders.
For the Six Months Ended June 30, 2013
	Fixed Maturities & Equity Securities		GMIB Assets		GMIB Liabilities		GMIB Net
(In millions)
Balance at January 1, 2013	$	1,351	$	622	$	(1,170)	$	(548)
Gains (losses) included in shareholders' net income:
GMIB fair value gain/(loss)		-		(205)		205		-
Other		10		2		-		2
Total gains (losses) included in shareholders' net income		10		(203)		205		2
Losses included in other comprehensive income		(17)		-		-		-
Losses required to adjust future policy benefits for settlement annuities (1)		(38)		-		-		-
Purchases, sales and settlements:
Purchases		40		-		-		-
Sales		(30)		-		-		-
Settlements		(61)		526		43		569
Total purchases, sales and settlements		(51)		526		43		569
Transfers into/(out of) Level 3:
Transfers into Level 3		69		-		-		-
Transfers out of Level 3		(115)		-		-		-
Total transfers into/(out of) Level 3		(46)		-		-		-
Balance at June 30, 2013	$	1,209	$	945	$	(922)	$	23
Total gains (losses) included in shareholders' net income attributable
to instruments held at the reporting date	$	4	$	(203)	$	205	$	2
(1) Amounts do not accrue to shareholders.

Separate account assets schedule

June 30, 2014
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Guaranteed separate accounts (See Note 16)	$	269	$	271	$	-	$	540
Non-guaranteed separate accounts (1)		1,851		5,178		1,074		8,103
Total separate account assets	$	2,120	$	5,449	$	1,074	$	8,643

(1) As of June 30, 2014, non-guaranteed separate accounts included $ 4.0 billion in assets supporting the Company's pension plans, including $1,020million classified in Level 3.

December 31, 2013
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Guaranteed separate accounts (See Note 16)	$	264	$	284	$	-	$	548
Non-guaranteed separate accounts (1)		1,844		4,825		1,035		7,704
Total separate account assets	$	2,108	$	5,109	$	1,035	$	8,252

(1) As of December 31, 2013, non-guaranteed separate accounts included $3.8 billion in assets supporting the Company's pension plans, including $983 million classified in Level 3.

Changes in level 3 separate account assets

	Three Months Ended
	June 30,
(In millions)	2014		2013
Balance at April 1,	$	1,069	$	1,011
Policyholder gains (1)		23		22
Purchases, sales and settlements:
Purchases		80		57
Sales		(2)		-
Settlements		(97)		(39)
Total purchases, sales and settlements		(19)		18
Transfers into/(out of) Level 3:
Transfers into Level 3		6		-
Transfers out of Level 3		(5)		(2)
Total transfers into/(out of) Level 3		1		(2)
Balance at June 30,	$	1,074	$	1,049

(1) Included in this amount are gains of $23 million attributable to instruments still heldat June 30, 2014 and gains of $22 millionattributable to instruments still held at June 30, 2013.

	Six Months Ended
	June 30,
(In millions)	2014		2013
Balance at January 1	$	1,035	$	1,005
Policyholder gains (1)		55		29
Purchases, sales and settlements:
Purchases		124		88
Sales		(2)		-
Settlements		(144)		(69)
Total purchases, sales and settlements		(22)		19
Transfers into/(out of) Level 3:
Transfers into Level 3		13		-
Transfers out of Level 3		(7)		(4)
Total transfers into/(out of) Level 3		6		(4)
Balance at June 30,	$	1,074	$	1,049

(1) Included in this amount are gains of $55 million attributable to instruments still held at June 30, 2014 and gains of $29 million attributable to instruments still held at June 30, 2013.

Financial instruments not carried at fair value

(In millions)			June 30, 2014				December 31, 2013
	Classification in the Fair Value Hierarchy		Fair Value		Carrying Value		Fair Value		Carrying Value
Commercial mortgage loans	Level 3	$	2,321	$	2,217	$	2,338	$	2,252
Contractholder deposit funds, excluding universal life products	Level 3	$	1,130	$	1,116	$	1,081	$	1,072
Long-term debt, including current maturities, excluding capital leases	Level 2	$	5,721	$	4,984	$	5,550	$	4,997

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Investments (Tables)

6 Months Ended

Jun. 30, 2014

Investment [Line Items]

Realized Investment Gains and Losses

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions)	2014		2013		2014		2013
Fixed maturities	$	4	$	22	$	12	$	89
Equity securities		-		1		17		4
Commercial mortgage loans		(4)		(4)		(4)		(4)
Real estate		-		-		13		-
Other investments, including derivatives		65		7		69		76
Realized investment gains before income taxes		65		26		107		165
Less income taxes		22		9		37		55
Net realized investment gains	$	43	$	17	$	70	$	110

Asset write-downs and changes in valuation reserves

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions)	2014		2013		2014		2013
Credit-related (1)	$	(9)	$	(8)	$	(15)	$	(8)
Other		(1)		(8)		(1)		(8)
Total	$	(10)	$	(16)	$	(16)	$	(16)
(1) Credit-related losses include increases in valuation reserves on commercial mortgage loans and asset write-downs related to investments in real estate entities.

Amortized cost and fair value by maturity period for fixed maturities

		Amortized		Fair
(In millions)		Cost		Value
Due in one year or less	$	1,161	$	1,180
Due after one year through five years		5,530		5,962
Due after five years through ten years		6,285		6,701
Due after ten years		2,785		3,535
Mortgage and other asset-backed securities		837		943
Total	$	16,598	$	18,321

Gross unrealized appreciation (depreciation) fixed maturities by type of issuer

				Gross		Gross
				Unrealized		Unrealized
		Amortized		Appre-		Depre-		Fair
		Cost		ciation		ciation		Value
(In millions)	June 30, 2014
Federal government and agency	$	914	$	338	$	-	$	1,252
State and local government		1,838		188		(3)		2,023
Foreign government		1,620		91		(5)		1,706
Corporate		11,389		1,020		(12)		12,397
Federal agency mortgage-backed		68		1		-		69
Other mortgage-backed		76		4		(2)		78
Other asset-backed		693		103		-		796
Total	$	16,598	$	1,745	$	(22)	$	18,321
(In millions)	December 31, 2013
Federal government and agency	$	640	$	242	$	(2)	$	880
State and local government		1,983		167		(6)		2,144
Foreign government		1,392		64		(12)		1,444
Corporate		10,306		749		(74)		10,981
Federal agency mortgage-backed		77		-		(1)		76
Other mortgage-backed		76		3		(2)		77
Other asset-backed		799		87		(2)		884
Total	$	15,273	$	1,312	$	(99)	$	16,486

Sales of available-for-sale fixed maturities and equity securities

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions)	2014		2013		2014		2013
Proceeds from sales	$	316	$	311	$	510	$	1,272
Gross gains on sales	$	3	$	23	$	25	$	83
Gross losses on sales	$	1	$	1	$	1	$	3

Fixed maturities with a decline in fair value from amortized cost

(Dollars in millions)	June 30, 2014
	Fair		Amortized		Unrealized		Number
(In millions)	Value		Cost		Depreciation		of Issues
Fixed maturities:
One year or less:
Investment grade	$	424	$	430	$	(6)	147
Below investment grade	$	235	$	238	$	(3)	126
More than one year:
Investment grade	$	401	$	411	$	(10)	159
Below investment grade	$	34	$	37	$	(3)	17

Credit risk profile of commercial mortgage loans

(In millions)				June 30, 2014
		Debt Service Coverage Ratio
		1.30x or		1.20x to		1.10x to		1.00x to		Less than
Loan-to-Value Ratios		Greater		1.29x		1.19x		1.09x		1.00x		Total
Below 50%	$	340	$	-	$	-	$	6	$	-	$	346
50% to 59%		765		91		-		-		-		856
60% to 69%		327		-		15		-		61		403
70% to 79%		68		52		33		-		81		234
80% to 89%		6		97		-		-		58		161
90% to 100%		-		3		55		-		159		217
Total	$	1,506	$	243	$	103	$	6	$	359	$	2,217
(In millions)					December 31, 2013
		Debt Service Coverage Ratio
		1.30x or		1.20x to		1.10x to		1.00x to		Less than
Loan-to-Value Ratios		Greater		1.29x		1.19x		1.09x		1.00x		Total
Below 50%	$	314	$	-	$	-	$	6	$	-	$	320
50% to 59%		581		131		-		18		-		730
60% to 69%		438		16		29		-		24		507
70% to 79%		79		113		-		-		-		192
80% to 89%		65		42		34		28		143		312
90% to 100%		-		-		58		50		83		191
Total	$	1,477	$	302	$	121	$	102	$	250	$	2,252

Impaired commercial mortgage loans and related valuation reserves

(In millions)		June 30, 2014					December 31, 2013
		Gross		Reserves		Net		Gross		Reserves		Net
Impaired commercial mortgage loans with valuation reserves	$	147	$	(12)	$	135	$	89	$	(8)	$	81
Impaired commercial mortgage loans with no valuation reserves		31		-		31		31		-		31
Total	$	178	$	(12)	$	166	$	120	$	(8)	$	112

Changes in valuation reserves for commercial mortgage loans Table

(In millions)	2014		2013
Reserve balance, January 1,	$	8	$	7
Increase in valuation reserves		4		4
Reserve balance, June 30,	$	12	$	11

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Consolidated Statements of Cash Flows (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Cash Flows from Operating Activities
Net Income	$ 1,101	$ 565
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	289	299
Realized investment (gains) losses	(107)	(165)
Deferred income taxes	14	196
Gains on sale of businesses (excluding discontinued operations)	(7)	(8)
Net changes in assets and liabilities, net of non-operating effects:
Premiums, accounts and notes receivable	(660)	(192)
Reinsurance recoverables	67	356
Deferred policy acquisition costs	(100)	(140)
Other assets	(98)	251
Insurance liabilities	359	779
Accounts payable, accrued expenses and other liabilities	78	(359)
Current income taxes	100	(89)
Cash used to exit Run-off Reinsurance business	0	(2,196)
Other, net	(34)	(20)
Net cash provided by / (used in) operating activities	1,002	(723)
Proceeds from investments sold:
Fixed maturities	476	1,269
Equity securities	34	3
Other (primarily short-term and other long-term investments)	1,404	411
Investment maturities and repayments:
Fixed maturities	898	821
Equity securities	0	18
Commercial mortgage loans	214	298
Investments purchased or originated:
Fixed maturities	(2,575)	(914)
Equity securities	(8)	(28)
Commercial mortgage loans	(183)	(22)
Other (primarily short-term and other long-term investments)	(868)	(460)
Property and equipment purchases	(236)	(209)
Other, net	12	(40)
Net cash provided by/ (used in) investing activities	(832)	1,147
Cash Flows from Financing Activities
Deposits and interest credited to contractholder deposit funds	790	738
Withdrawals and benefit payments from contractholder deposit funds	(758)	(669)
Change in cash overdraft position	15	29
Net change in short-term debt	(96)	(48)
Repurchase of common stock	(1,029)	(277)
Issuance of common stock	80	91
Common dividends paid	(11)	(11)
Other, net	2	(7)
Net cash (used in) / provided by financing activities	(1,007)	(154)
Effect of foreign currency rate changes on cash and cash equivalents	9	(39)
Net increase (decrease) in cash and cash equivalents	(828)	231
Cash and cash equivalents, beginning of year	2,795	2,978
Cash and cash equivalents, end of year	1,967	3,209
Supplemental Disclosure of Cash Information:
Income taxes paid, net of refunds	514	154
Interest paid	$ 132	$ 130

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Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of notional values of derivative instruments

	Notional Amount (In millions)
		As of		As of
Instrument		June 30, 2014		December 31, 2013
Interest rate swaps	$	44	$	45
Foreign currency swaps		111		118
Combination interest rate and foreign currency swaps		40		40
Total	$	195	$	203

Schedule of effect of derivative instruments on the financial statements

Fair Value Effect on the Financial Statements (In millions)
	Other Long-Term Investments (2)				Accounts Payable, Accrued Expenses and Other Liabilities (2)				Gain (Loss) Recognized in Other Comprehensive Income (1)
	As of June 30,		As of December 31,		As of June 30,		As of December 31,		For the three months ended June 30,				For the six months ended June 30,
Instrument	2014		2013		2014		2013		2014		2013		2014		2013
Interest rate swaps	$	1	$	2	$	-	$	-	$	-	$	-	$	(1)	$	(1)
Foreign currency swaps		1		1		12		13		-		-		2		4
Combination interest rate and foreign currency swaps		-		-		5		2		(1)		10		(2)		9
Total	$	2	$	3	$	17	$	15	$	(1)	$	10	$	(1)	$	12
(1) Other comprehensive income for foreign currency swaps excludes amounts required to adjust future policy benefits for the run-off settlement annuity business.
(2) There were no amounts offset in the Consolidated Balance Sheets at June 30, 2014 or December 31, 2013.

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Reinsurance - Effective Exit of GMDB and GMIB Business (Details) (USD $)	6 Months Ended			3 Months Ended	12 Months Ended		3 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2013 Other Revenues [Member] Variable Annuity [Member] Guaranteed Minimum Death Benefit [Member] Interest And Equity Hedge [Member]	Mar. 31, 2013 Berkshire Hathway Life Insurance Company Of Nebraska [Member] Variable Annuity [Member]	Dec. 31, 2013 Berkshire Hathway Life Insurance Company Of Nebraska [Member] Variable Annuity [Member]	Feb. 04, 2013 Berkshire Hathway Life Insurance Company Of Nebraska [Member] Variable Annuity [Member]	Mar. 31, 2013 Berkshire Hathway Life Insurance Company Of Nebraska [Member] Other Benefits Expense [Member] Variable Annuity [Member]	Mar. 31, 2013 Berkshire Hathway Life Insurance Company Of Nebraska [Member] Guaranteed Minimum Income Benefits Fair Value Gain Loss [Member] Variable Annuity [Member]	Mar. 31, 2013 Berkshire Hathway Life Insurance Company Of Nebraska [Member] Other Operating Expenses [Member] Variable Annuity [Member]
Ceded Credit Risk [Line Items]
Percent of future claim payments reinsured						100.00%
Ceded Reinsurance Agreement, Coverage Limit, Fixed Portion						$ 3,800,000,000
Ceded Reinsurance Agreement Charge, After-tax				507,000,000
Ceded Reinsurance Agreement Charge, Pre-tax				781,000,000			727,000,000	45,000,000	9,000,000
Reinsurance preimums paid	0	2,196,000,000		2,196,000,000	1,647,000,000
Derivative Gain (Loss)			$ (32,000,000)

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Fair Value Measurements - Measured Under Certain Conditions (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Financing Receivable, Impaired [Line Items]
Realized investment losses on impaired commercial mortgage loans and real estate entities	$ 10	$ 5
Maximum [Member]
Financing Receivable, Impaired [Line Items]
Impaired commercial mortgage loans and real estate entities as a percent of total investments	1.00%	1.00%

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Income Taxes - Reconciliation to Nominal Tax Rate (Details)	6 Months Ended
	Jun. 30, 2014
Income Taxes [Abstract]
Effective tax rate	37.20%

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Consolidated Statements of Income (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Revenues
Premiums and fees	$ 7,758	$ 7,172	$ 15,374	$ 14,486
Net investment income	294	289	571	576
Mail order pharmacy revenues	547	437	1,042	862
Other revenues	69	56	135	74
Realized investment gains (losses):
Other-than-temporary impairments on fixed maturities, net	(1)	(8)	(1)	(8)
Other realized investment gains	66	34	108	173
Total realized investment gains	65	26	107	165
Total revenues	8,733	7,980	17,229	16,163
Benefits and Expenses
Global Health Care medical claims expense	4,219	3,904	8,250	7,951
Other benefit expenses	1,100	997	2,266	2,859
Mail order pharmacy cost of goods sold	469	362	883	706
Other operating expenses	2,044	1,950	4,076	3,806
Total benefits and expenses	7,832	7,213	15,475	15,322
Income before Income Taxes	901	767	1,754	841
Income taxes:
Current	329	181	639	80
Deferred	0	80	14	196
Total taxes	329	261	653	276
Net Income	572	506	1,101	565
Less: Net Income Attributable to Noncontrolling Interests	(1)	1	0	3
Shareholders' Net Income	$ 573	$ 505	$ 1,101	$ 562
Shareholder's Net Income Per Share:
Basic	$ 2.16	$ 1.79	$ 4.11	$ 1.99
Diluted	$ 2.12	$ 1.76	$ 4.05	$ 1.95
Dividends Declared Per Share	$ 0	$ 0	$ 0.04	$ 0.04

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Organizational Efficiency Plans (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended			6 Months Ended	12 Months Ended	3 Months Ended					12 Months Ended	3 Months Ended			12 Months Ended
	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Jun. 30, 2014	Dec. 31, 2013	Sep. 30, 2012 Organizational Efficiency Cost Reduction 2012 Plan [Member]	Dec. 31, 2013 Organizational Efficiency Cost Reduction 2013 Plan [Member]	Jun. 30, 2014 Employee Severance [Member]	Mar. 31, 2014 Employee Severance [Member]	Dec. 31, 2013 Employee Severance [Member]	Dec. 31, 2013 Employee Severance [Member]	Jun. 30, 2014 Facility Closing [Member]	Mar. 31, 2014 Facility Closing [Member]	Dec. 31, 2013 Facility Closing [Member]	Dec. 31, 2013 Facility Closing [Member]
Organizational Efficiency Plan Activity [Line Items]
Balance, January 1,		$ 81		$ 81	$ 71				$ 68		$ 67		$ 13		$ 4
Charge			60			77	60			47				13
Payments	8	12			50			7	11		46	1	1		4
Ending balance	61		81	61	81			50		68	68	11		13	13
Restructuring charge, net of tax						$ 50	$ 40
Caption that includes restructuring charges				Other operating expenses

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Consolidated Balance Sheets (Parentheticals) (USD $) In Millions, except Per Share data, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Consolidated Balance Sheets
Fixed maturities, at amortized cost	$ 16,598	$ 15,273
Equity securities, at cost	$ 136	$ 146
Common stock par value	$ 0.25	$ 0.25
Common stock shares issued	366	366
Common Stock Shares Authorized	600	600

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Investments - Sales of Fixed Maturities and Equity Securities (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Sales Information For Available For Sale Fixed Maturities Equity Securities [Abstract]
Proceeds from sales	$ 316	$ 311	$ 510	$ 1,272
Gross gains on sales	3	23	25	83
Gross losses on sales	$ 1	$ 1	$ 1	$ 3

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Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2014

Accumulated Other Comprehensive Income (Loss) [Abstract]

Changes in accumulated other comprehensive income (loss)

			Tax
			(Expense)		After-
(In millions)	Pre-Tax		Benefit		Tax
Three Months Ended June 30, 2014
Net unrealized appreciation, securities:
Net unrealized appreciation on securities arising during the period	$	157	$	(51)	$	106
Reclassification adjustment for (gains) included in shareholders' net income (realized investment gains)		(4)		1		(3)
Net unrealized appreciation, securities	$	153	$	(50)	$	103
Net unrealized appreciation, derivatives	$	-	$	-	$	-
Net translation of foreign currencies	$	51	$	(5)	$	46
Postretirement benefits liability adjustment:
Reclassification adjustment for amortization of net losses from past
experience and prior service costs (other operating expenses)	$	15	$	(5)	$	10
Net change due to valuation update		2		(1)		1
Net postretirement benefits liability adjustment	$	17	$	(6)	$	11
Three Months Ended June 30, 2013
Net unrealized depreciation, securities:
Net unrealized depreciation on securities arising during the period	$	(384)	$	130	$	(254)
Reclassification adjustment for (gains) included in shareholders' net income (realized investment gains)		(23)		8		(15)
Net unrealized depreciation, securities	$	(407)	$	138	$	(269)
Net unrealized appreciation, derivatives	$	10	$	(4)	$	6
Net translation of foreign currencies	$	(23)	$	7	$	(16)
Postretirement benefits liability adjustment:
Reclassification adjustment for amortization of net losses from past
experience and prior service costs (other operating expenses)	$	17	$	(6)	$	11
Net change due to valuation update		16		(6)		10
Net postretirement benefits liability adjustment	$	33	$	(12)	$	21

			Tax
			(Expense)		After-
(In millions)	Pre-Tax		Benefit		Tax
Six Months Ended June 30, 2014
Net unrealized appreciation, securities:
Net unrealized appreciation on securities arising during the period	$	313	$	(105)	$	208
Reclassification adjustment for (gains) included in shareholders' net income (realized investment gains)		(29)		10		(19)
Net unrealized appreciation, securities	$	284	$	(95)	$	189
Net unrealized appreciation, derivatives	$	-	$	-	$	-
Net translation of foreign currencies	$	38	$	(3)	$	35
Postretirement benefits liability adjustment:
Reclassification adjustment for amortization of net losses from past
experience and prior service costs (other operating expenses)	$	28	$	(10)	$	18
Reclassification adjustment for settlement (other operating expenses)		6		(2)		4
Total reclassification adjustments to shareholders' net income (other operating expenses)		34		(12)		22
Net change due to valuation update		2		(1)		1
Net postretirement benefits liability adjustment	$	36	$	(13)	$	23
Six Months Ended June 30, 2013
Net unrealized depreciation, securities:
Net unrealized depreciation on securities arising during the period	$	(420)	$	142	$	(278)
Reclassification adjustment for (gains) included in shareholders' net income (realized investment gains)		(93)		32		(61)
Net unrealized depreciation, securities	$	(513)	$	174	$	(339)
Net unrealized appreciation, derivatives	$	14	$	(5)	$	9
Net translation of foreign currencies	$	(92)	$	18	$	(74)
Postretirement benefits liability adjustment:
Reclassification adjustment for amortization of net losses from past
experience and prior service costs (other operating expenses)	$	34	$	(12)	$	22
Reclassification adjustment for curtailment (other operating expenses)		(19)		7		(12)
Total reclassification adjustments to shareholders' net income (other operating expenses)		15		(5)		10
Net change due to valuation update and plan amendments		79		(28)		51
Net postretirement benefits liability adjustment	$	94	$	(33)	$	61

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Investments - Short-Term Investments and Cash Equivalents (Details) (USD $) In Millions, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Corporate Securities [Member]
Short Term Investments And Cash Equivalents [Line Items]
Short-term investments and cash equivalents	$ 1,200	$ 2,200
Federal goverment securities
Short Term Investments And Cash Equivalents [Line Items]
Short-term investments and cash equivalents	126	323
Money Market Funds [Member]
Short Term Investments And Cash Equivalents [Line Items]
Short-term investments and cash equivalents	$ 33	$ 35

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Income Taxes

6 Months Ended

Jun. 30, 2014

Income Taxes [Abstract]

Income Taxes

Note 14― Income Taxes

A. Income Tax Expense

The Company indefinitely reinvests the undistributed earnings of certain foreign operations. As a result, income taxes are provided on the earnings of these operations using the respective foreign jurisdictions' tax rate, as compared to the higher U.S. statutory tax rate. The indefinite reinvestment of foreign operation earnings resulted in an increase to shareholders' net income of $20million for the six months ended June 30, 2014 and 2013. The Company has accumulated indefinitely reinvested foreign earnings of $1.2billion and cumulative unrecognized deferred tax liabilities of $194 million through June 30, 2014. The Company continues to evaluate the indefinite reinvestment of earnings for additional foreign jurisdictions.

The consolidated effective tax rate of 37.2% for the six months ended June 30, 2014has increased from historical levels because the health insurance industry fee accrued beginning in 2014 is not tax deductible. 

B. Unrecognized Tax Benefits

Changes in unrecognized tax benefits were immaterialfor the six months ended June 30, 2014.

C. Other Tax Matters

In 2013, the IRS completed their examination of the Company's 2009 and 2010 tax yearsresulting in two issues that could not be resolved at the examination level. The Company subsequently filed a formal protest challenging the IRS positionson the two disputed matters. The IRS has since agreed to withdraw its challenge relating to one of these matters and the parties recently agreed ona resolution of the second matter. The resolution of these matters will not materially impact shareholders'net income.

The IRS is expected to begin their examination of the Company's 2011 and 2012 tax years in the second half of 2014.

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2014

Segment Information Details [Abstract]

Summarized segment financial information

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions)	2014		2013		2014		2013
Premiums and fees, Mail order pharmacy revenues and Other revenues
Global Health Care	$	6,726	$	6,171	$	13,272	$	12,468
Global Supplemental Benefits		729		622		1,419		1,234
Group Disability and Life		891		847		1,806		1,705
Other Operations		30		30		60		23
Corporate		(2)		(5)		(6)		(8)
Total	$	8,374	$	7,665	$	16,551	$	15,422
Shareholders' net income
Global Health Care	$	402	$	379	$	841	$	806
Global Supplemental Benefits		61		49		114		104
Group Disability and Life		110		104		177		102
Other Operations		13		15		30		(447)
Corporate		(56)		(59)		(131)		(113)
Segment earnings		530		488		1,031		452
Realized investment gains, net of taxes		43		17		70		110
Shareholders' net income	$	573	$	505	$	1,101	$	562

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Contingencies and Other Matters

6 Months Ended

Jun. 30, 2014

Contingencies And Other Matters [Abstract]

Contingencies and Other Matters

Note 16 ― Contingencies and Other Matters

The Company, through its subsidiaries, is contingently liable for various guarantees provided in the ordinary course of business.

A. Financial Guarantees: Retiree and Life Insurance Benefits

Separate account assets are contractholder funds maintained in accounts with specific investment objectives.

The Company records separate account liabilities equal to separate account assets.  In certain cases, the Company guarantees a minimum level of benefits for retirement and insurance contracts written in separate accounts.  The Company establishes an additional liability if management believes that the Company will be required to make a payment under these guarantees.

The Company guarantees that separate account assets will be sufficient to pay certain retiree or life insurance benefits.  The sponsoring employers are primarily responsible for ensuring that assets are sufficient to pay these benefits and are required to maintain assets that exceed a certain percentage of benefit obligations.  This percentage varies depending on the asset class within a sponsoring employer's portfolio (for example, a bond fund would require a lower percentage than a riskier equity fund) and thus will vary as the composition of the portfolio changes.  If employers do not maintain the required levels of separate account assets, the Company or an affiliate of the buyer of the retirement benefits business (see Note 5for additional information) has the right to redirect the management of the related assets to provide for benefit payments.  As of June 30, 2014, employers maintained assets that exceeded the benefit obligations. Benefit obligations under these arrangements were $500 million as of June 30, 2014 and approximately 13% of these are reinsured by an affiliate of the buyer of the retirement benefits business. The remaining guarantees are provided by the Company with minimal reinsurance from third parties. There were no additional liabilities required for these guarantees as of June 30, 2014.Separate account assets supporting these guarantees are classified in Levels 1 and 2 of the GAAP fair value hierarchy.  See Note 7for further information on the fair value hierarchy.

The Company does not expect that these financial guarantees will have a material effect on the Company's consolidated results of operations, liquidity or financial condition.

B. Guaranteed Minimum Income Benefit Contracts

The Company has retrocessional coverage in place that covers the exposures on these contracts. See Notes 5, 7 and 9 for further information on GMIB contracts.

Under these guarantees, the future payment amounts are dependent on equity and bond fund market and interest rate levels prior to and at the date of annuitization election that must occur within 30 days of a policy anniversary after the appropriate waiting period. Therefore, the future payments are not fixed and determinable under the terms of these contracts. Accordingly, the Company's maximum potential undiscounted future payment of $742 million, without considering any retrocessional coverage, was determined using the following hypothetical assumptions:

• no annuitants surrendered their accounts;
• all annuitants lived to elect their benefit;
• all annuitants elected to receive their benefit on the next available date (2014 through 2019); and
• all underlying mutual fund investment values remained at the June 30, 2014 value of $1.2 billion with no future returns.

The Company bears the risk of loss if its GMIB retrocessionaires do not meet or are unable to meet their reinsurance obligations to the Company.

C. Certain Other Guarantees

The Company had indemnification obligations to lenders of up to $294million as of June 30, 2014, related to borrowings by certain real estate joint ventures that the Company either records as an investment or consolidates. These borrowings, that are nonrecourse to the Company, are secured by the joint ventures' real estate properties with fair values in excess of the loan amounts and mature at various dates beginning in 2015 through 2042.  The Company's indemnification obligations would require payment to lenders for any actual damages resulting from certain acts such as unauthorized ownership transfers, misappropriation of rental payments by others or environmental damages.  Based on initial and ongoing reviews of property management and operations, the Company does not expect that payments will be required under these indemnification obligations.  Any payments that might be required could be recovered through a refinancing or sale of the assets.  In some cases, the Company also has recourse to partners for their proportionate share of amounts paid.  There were no liabilities required for these indemnification obligations as of June 30, 2014.

As of June 30, 2014, the Company guaranteed that it would compensate the lessors for a shortfall of up to $41 million in the market value of certain leased equipment at the end of the leases. Guarantees of $16 million expire in 2016 and $25 million expire in 2025. The Company had liabilities for these guarantees of $6 million as of June 30, 2014.

The Company had indemnification obligations as of June 30, 2014in connection with acquisition, disposition and reinsurance transactions. These indemnification obligations are triggered by the breach of representations or covenants provided by the Company, such as representations for the presentation of financial statements, actuarial models, the filing of tax returns, compliance with law or the identification of outstanding litigation. These obligations are typically subject to various time limitations, defined by the contract or by operation of law, such as statutes of limitation. In some cases, the maximum potential amount due is subject to contractual limitations based on a percentage of the transaction purchase price, while in other cases limitations are not specified or applicable. The Company does not believe that it is possible to determine the maximum potential amount due under these obligations, because not all amounts due under these indemnification obligations are subject to limitation. There were noliabilities for these indemnification obligations as of June 30, 2014.

The Company does not expect that these guarantees will have a material adverse effect on the Company's consolidated results of operations, financial condition or liquidity.

D. Guaranty Fund Assessments

The Company operates in a regulatory environment that may require the Company to participate in assessments under state insurance guaranty association laws. The Company's exposure to assessments for certain obligations of insolvent insurance companies to policyholders and claimants is based on its share of business written in the relevant jurisdictions. For the six months ended June 30, 2014 and 2013, charges related to guaranty fund assessments were immaterial to the Company's results of operations.

The Company is aware of an insurer that is in rehabilitation. In 2012, the state court denied the regulator's amended petitions for liquidation and set forth specific requirements and a deadline for the regulator to develop a plan of rehabilitation without liquidating the insurer. The regulator has appealed the court's decision. If the actions taken in the rehabilitation plan fail to improve this insurer's financial condition, or if the state court's ruling is overturned on appeal, this insurer may be forced into insolvency. In that event, the Company would be required to pay guaranty fund assessments related to this insurer. Due to the uncertainties surrounding this matter, the Company is unable to estimate the amount of any potential guaranty fund assessments. The Company is monitoring this situation.

E. Legal and Regulatory Matters

The Company is routinely involved in numerous claims, lawsuits, regulatory audits, investigations and other legal matters arising, for the most part, in the ordinary course of managing a health services business. These actions may include benefit disputes, breach of contract claims, tort claims, provider disputes, disputes regarding reinsurance arrangements, employment and employment discrimination-related suits, employee benefit claims, wage and hour claims, privacy, intellectual property claims and real estate related disputes. There are currently, and may be in the future, attempts to bring class action lawsuits against the industry.The Company also is regularly engaged in IRS audits and may be subject to examinations by various state and foreign taxing authorities. Disputed income tax matters arising from these examinations, including those resulting in litigation, are accounted for under the FASB's guidance for uncertain tax positions. Further information on income tax matters can be found in Note 14.

The business of administering and insuring health services programs, particularly health care and group insurance programs, is heavily regulated by federal and state laws and administrative agencies, such as state departments of insurance and the U.S. Departments of Health and Human Services, Treasury, Labor and Justice, as well as the courts. Health care regulation and legislation in its various forms, including the implementation of the Patient Protection and Affordable Care Act, other regulatory reform initiatives, such as those relating to Medicare programs, or additional changes in existing laws or regulations or their interpretations, could have a material adverse effect on the Company's business, results of operations and financial condition.

In addition, there is heightened review by federal and state regulators of the health care, disability and life insurance industry business and related reporting practices. Cigna is frequently the subject of regulatory market conduct reviews and other examinations of its business and reporting practices, audits and investigations by state insurance and health and welfare departments, state attorneys general, the Centers for Medicare and Medicaid Services (“CMS”) and the Office of Inspector General (“OIG”). With respect to Cigna's Medicare Advantage business, CMS and OIG perform audits to determine a health plan's compliance with federal regulations and contractual obligations, including compliance with proper coding practices (sometimes referred to as Risk Adjustment Data Validation audits or RADV audits), that may result in retrospective adjustments to payments made to health plans. Regulatory actions can result in assessments, civil or criminal fines or penalties or other sanctions, including loss of licensing or exclusion from participation in government programs.

Regulation, legislation and judicial decisions have resulted in changes to industry and the Company's business practices, financial liability or other sanctions and will continue to do so in the future.

When the Company (in the course of its regular review of pending litigation and legal or regulatory matters) has determined that a material loss is reasonably possible, the matter is disclosed. In accordance with GAAP, when litigation and regulatory matters present loss contingencies that are both probable and estimable, the Company accrues the estimated loss by a charge to income. The amount accrued represents the Company's best estimate of the probable loss at the time. If only a range of estimated losses can be determined, the Company accrues an amount within the range that, in the Company's judgment, reflects the most likely outcome; if none of the estimates within that range is a better estimate than any other amount, the Company accrues the minimum amount of the range. In cases when the Company has accrued an estimated loss, the accrued amount may differ materially from the ultimate amount of the loss. In many proceedings, it is inherently difficult to determine whether any loss is probable or even possible or to estimate the amount or range of any loss. The Company provides disclosure in the aggregate for material pending litigation and legal or regulatory matters, including accruals, range of loss, or a statement that such information cannot be estimated. As a litigation or regulatory matter develops, the Company monitors the matter for further developments that could affect the amount previously accrued, if any, and updates such amount accrued or disclosures previously provided as appropriate.

The outcome of litigation and other legal or regulatory matters is always uncertain, and unfavorable outcomes that are not justified by the evidence or existing law can occur. The Company believes that it has valid defenses to the matters pending against it and is defending itself vigorously. Except as otherwise noted, the Company believes that the legal actions, regulatory matters, proceedings and investigations currently pending against it should not have a material adverse effect on the Company's results of operation, financial condition or liquidity based upon current knowledge and taking into consideration current accruals. The Company had pre-tax reserves as of June 30, 2014of $189 million ($123 million after-tax) for the matters discussed below. Due to numerous uncertain factors presented in these cases, it is not possible to estimate an aggregate range of loss (if any) for these matters at this time. In light of the uncertainties involved in these matters, there is no assurance that their ultimate resolution will not exceed the amounts currently accrued by the Company. An adverse outcome in one or more of these matters could be material to the Company's results of operations, financial condition or liquidity for any particular period.

Litigation Matters

Amara cash balance pension plan litigation. On December 18, 2001, Janice Amara filed a class action lawsuit, captioned Janice C. Amara, Gisela R. Broderick, Annette S. Glanz, individually and on behalf of all others similarly situated v. Cigna Corporation and Cigna Pension Plan, in the U.S. District Court for the District of Connecticut against Cigna Corporation and the Cigna Pension Plan (the “Plan”) on behalf of herself and other similarly situated participants in the Cigna Pension Plan affected by the 1998 conversion to a cash balance formula. The plaintiffs allege various ERISA violations including, among other things, that the Plan's cash balance formula discriminates against older employees; that the conversion resulted in a wear-away period (when the pre-conversion accrued benefit exceeded the post-conversion benefit); and that the Plan description contained inaccurate or inadequate disclosure about these conditions.

In 2008, the District Court found in favor of the plaintiffs on the disclosure claim only, and ordered payment of enhanced benefits, requiring that class members receive pre-1998 benefits under the pre-conversion traditional formula and post-1997 accrued benefits under the post-conversion cash balance formula. The U.S. Court of Appeals for the Second Circuit affirmed thedecision on all issues, following which the U.S. Supreme Court granted the Company's petition to review the case. In May 2011, the Supreme Court held that the District Court erred in ordering enhanced benefits under a section of ERISA that allows recovery of plan benefits only, and directed that the District Court consider alternate remedies under a different section of ERISA that allows for “appropriate equitable relief.” In December 2012, the District Court interpreted the Supreme Court's opinion and ordered the Company to reform the Plan to pay substantially the same benefits as had been ordered in 2008. In addition, the District Court denied the Company's motion to decertify the class. Both parties appealed, and the Second Circuit heard oral arguments in February 2014. The Company will continue to vigorously defend its position in this case.

Ingenix. In April 2004, the Company was named as a defendant in a number of putative nationwide class actions alleging that the Company improperly underpaid claims for out-of-network providers through the use of data provided by Ingenix, Inc., a subsidiary of one of the Company's competitors. These actions were consolidated into Franco v. Connecticut General Life Insurance Company et al., pending in the U.S. District Court for the District of New Jersey. The consolidated amended complaint, filed on August 7, 2009, asserted claims related to benefits and disclosure under ERISA, the Racketeer Influenced and Corrupt Organizations (“RICO”) Act, the Sherman Antitrust Act and New Jersey state law on behalf of subscribers, health care providers and various medical associations and seeks recovery for alleged underpayments from 1998 through the present. Other major health insurers have been the subject of, or have settled, similar litigation.

In September 2011, the District Court dismissed all claims by the health care provider and medical association plaintiffs for lack of standing. In addition, the District Court dismissed the antitrust claims, the New Jersey state law claims and the disclosure claim under ERISA. In January 2013 and again in April 2014, the District Court denied separate motions by the plaintiffs to certify a nationwide class of subscriber plaintiffs. The U.S. Court of Appeals for the Third Circuit denied plaintiff's request for an immediate appeal of the January 2013 ruling. As a result, the case is proceeding on behalf of the named plaintiffs only. On June 24, 2014, the District Court granted the Company's motion for summary judgment, terminating all claims, and denied the plaintiffs' partial motion for summary judgment.  On July 24, 2014, the plaintiffs filed a notice of appeal of the District Court's decision to the Third Circuit. The Company will continue to vigorously defend its position in this case.

In addition, the Company and other health insurers were subject to an investigation in 2008 by the New York State Attorney General related to similar issues. The industry-wide resolution included the Company's $10 million contribution to a non-profit organization that manages the data formerly provided by Ingenix.

Regulatory Matters

Disability claims regulatory matter. During the second quarter of 2013, the Company finalized an agreement with the Departments of Insurance for Maine, Massachusetts, Pennsylvania, Connecticut and California (together, the “monitoring states”) related to an examination of the Company's long-term disability claims handling practices. The agreement requires, among other things: (1) enhanced claims handling procedures related to documentation and disposition; (2) monitoring the Company's implementation of these procedures during a two-year period following the execution date of the agreement; and (3) a reassessment of claims denied or closed during a two-year prior period, except California for which the reassessment period is three years.

In connection with the terms of the agreement, the Company recorded a charge of $77 million before-tax ($51 million after-tax) in the first quarter of 2013. The charge was comprised of two elements: (1) $48 million of benefit costs and reserves from reassessed claims expected to be reopened, and (2) $29 million in additional costs for open claims as a result of the claims handling changes being implemented. The Company is actively implementing the terms of the agreement and continues to communicate with the monitoring states on progress. If the monitoring states find material non-compliance with the agreement upon re-examination, the Company may be subject to additional costs and penalties. Most other jurisdictions have joined the agreement as participating, non-monitoring states.

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Pension and Other Postretirement Benefits (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended		3 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014 Pension Benefits [Member]	Jun. 30, 2013 Pension Benefits [Member]	Jun. 30, 2014 Pension Benefits [Member]	Jun. 30, 2013 Pension Benefits [Member]	Jun. 30, 2014 Other Postretirement Benefits [Member]	Jun. 30, 2013 Other Postretirement Benefits [Member]	Jun. 30, 2014 Other Postretirement Benefits [Member]	Jun. 30, 2013 Other Postretirement Benefits [Member]	Mar. 31, 2013 Retiree Health Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Increase (decrease) to other postretirement obligation													$ (57)
Increase (decrease) to shareholders' equity resulting from plan ammendments													37
Components of net pension cost and other postretirement benefits cost tables detail [Abstract]
Service cost					1	0	1	1		0	0	0
Interest cost					52	46	103	91	3	3	6	6
Expected long-term return on plan assets					(66)	(68)	(132)	(136)		0	0	0
Amortization of net loss from past experience					15	18	29	37		0	0	0
Amortization of prior service cost						0	0	0	0	(1)	(1)	(3)
Settlement loss						0	6	0		0	0	0
Curtailment (gain) loss						0	0	0		0	0	(19)
Net pension cost					2	(4)	7	(7)	3	2	5	(16)
Increase (decrease) to postretirement benefits liability adjustment pre-tax			(36)
Increase (decrease) to postretirement benefits liability adjustement after-tax	(11)	(21)	(23)	(61)
Domestic pension plan contributions							$ 113

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Statement of Changes in Total Equity (USD $) In Millions, unless otherwise specified	Total	Shareholders' Equity [Member]	Common Stock [Member]	Additional Paid In Capital [Member]	Accumulated Other Comprehensive Income [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Noncontrolling Interest [Member]
Beginning Balance at Mar. 31, 2013	$ 113
Total Equity, beginning of period at Mar. 31, 2013	9,660	9,660	92	3,305	(756)	12,328	(5,309)
Increase (Decrease) In Stockholders' Equity [Roll Forward]
Effect of issuing stock for employee benefit plans	75	75		21		(27)	81
Other comprehensive income (loss)	(258)	(258)			(258)
Net income	505	505				505
Repurchase of common stock	(207)	(207)					(207)
Redeemable Noncontrolling Interest [Roll Forward]
Other comprehensive income (loss)	(6)
Net income	1
Distribution to noncontrolling interest	(7)
Ending Balance at Jun. 30, 2013	101
Total Equity, end of period at Jun. 30, 2013	9,775	9,775	92	3,326	(1,014)	12,806	(5,435)	0
Beginning Balance at Dec. 31, 2012	114
Total Equity, beginning of period at Dec. 31, 2012	9,769	9,769	92	3,295	(671)	12,330	(5,277)	0
Increase (Decrease) In Stockholders' Equity [Roll Forward]
Effect of issuing stock for employee benefit plans	102	102		31		(75)	146
Other comprehensive income (loss)	(343)	(343)			(343)
Net income	562	562				562
Common dividends declared (per share: $0.04)	(11)	(11)				(11)
Repurchase of common stock	(304)	(304)					(304)
Redeemable Noncontrolling Interest [Roll Forward]
Other comprehensive income (loss)	(9)
Net income	3
Distribution to noncontrolling interest	(7)
Ending Balance at Jun. 30, 2013	101
Total Equity, end of period at Jun. 30, 2013	9,775	9,775	92	3,326	(1,014)	12,806	(5,435)	0
Beginning Balance at Dec. 31, 2013	96
Total Equity, beginning of period at Dec. 31, 2013	10,581	10,567	92	3,356	(520)	13,676	(6,037)	14
Increase (Decrease) In Stockholders' Equity [Roll Forward]
Effect of issuing stock for employee benefit plans	90	90		49		(89)	130
Other comprehensive income (loss)	248	247			247			1
Net income	1,096	1,101				1,101		(5)
Common dividends declared (per share: $0.04)	(11)	(11)				(11)
Repurchase of common stock	(1,057)	(1,057)					(1,057)
Capital contribution by noncontrolling interest	5							5
Redeemable Noncontrolling Interest [Roll Forward]
Other comprehensive income (loss)	0
Net income	5
Capital contribution by noncontrolling interest	2
Distribution to noncontrolling interest	(4)
Ending Balance at Jun. 30, 2014	99
Total Equity, end of period at Jun. 30, 2014	10,952	10,937	92	3,405	(273)	14,677	(6,964)	15
Beginning Balance at Mar. 31, 2014	96
Total Equity, beginning of period at Mar. 31, 2014	10,569	10,556	92	3,392	(433)	14,136	(6,631)	13
Increase (Decrease) In Stockholders' Equity [Roll Forward]
Effect of issuing stock for employee benefit plans	62	62		13		(32)	81
Other comprehensive income (loss)	160	160			160
Net income	570	573				573		(3)
Repurchase of common stock	(414)	(414)					(414)
Capital contribution by noncontrolling interest	5							5
Redeemable Noncontrolling Interest [Roll Forward]
Other comprehensive income (loss)	3
Net income	2
Capital contribution by noncontrolling interest	2
Distribution to noncontrolling interest	(4)
Ending Balance at Jun. 30, 2014	99
Total Equity, end of period at Jun. 30, 2014	$ 10,952	$ 10,937	$ 92	$ 3,405	$ (273)	$ 14,677	$ (6,964)	$ 15

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Consolidated Statements of Shareholders' Comprehensive Income (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Statement Of Comprehensive Income [Abstract]
Shareholders' Net Income	$ 573	$ 505	$ 1,101	$ 562
Net unrealized appreciation (depreciation) on securities:
Fixed maturities	103	(269)	190	(341)
Equity securities	0	0	(1)	2
Net unrealized appreciation (depreciation) on securities	103	(269)	189	(339)
Net unrealized appreciation (depreciation), derivatives	0	6	0	9
Net translation of foreign currencies	46	(16)	35	(74)
Postretirement benefits liability adjustment	11	21	23	61
Shareholders' other comprehensive income	160	(258)	247	(343)
Shareholders' comprehensive income (loss)	$ 733	$ 247	$ 1,348	$ 219

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Derivative Financial Instruments

6 Months Ended

Jun. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Note 9 — Derivative Financial Instruments

The Company uses derivative financial instruments to manage the characteristics ofinvestment assets to meet the varying demands of the related insurance and contractholder liabilities and to hedge long-term debt. The Company has written and purchased reinsurance contracts in its run-off reinsurance business that are accounted for as free standing derivatives. The Company alsoused derivative financial instruments to manage the equity, foreign currency, and certain interest rate risk exposures of its run-off reinsurance business until February 4, 2013 (for further information, see Note 5). For information on the Company's accounting policy for derivative financial instruments, see Note 2 to the Financial Statements contained in the Company's 2013 Form 10-K. Derivatives in the Company's separate accounts are excluded from the following discussion because associated gains and losses generally accrue directly to separate account policyholders.

Collateral and termination features.The Company routinely monitors exposure to credit risk associated with derivatives and diversifies the portfolio among approved dealers of high credit quality to minimize this risk. As of June 30, 2014, the Company had $19 million in cash on deposit representing the upfront margin required for the Company's centrally-cleared derivative instruments.Certain of the Company's over-the-counter derivative instruments contain provisions requiring either the Company or the counterparty to post collateral or demand immediate payment depending on the amount of the net liability position and predefined financial strength or credit rating thresholds. Collateral posting requirements vary by counterparty. The net liability positions of these derivatives were not material as of June 30, 2014 or December 31, 2013.

Derivative instruments used in the Company's investment and interest rate risk management.

The Company uses derivative financial instruments as a part of its investment strategy to manage the characteristics of investment assets (such as duration, yield, currency and liquidity) to meet the varying demands of the related insurance and contractholder liabilities (such as paying claims, investment returns and withdrawals). Derivatives are typically used in this strategy to reduce interest rate and foreign currency risks. The Company also uses derivative financial instruments to hedge interest rate risk on its long-term debt.

Investment Cash Flow Hedges

Purpose. The Company uses interest rate, foreign currency, and combination (interest rate and foreign currency) swap contracts to hedge the interest and foreign currency cash flows of its fixed maturity bonds to match associated insurance liabilities.

Accounting policy. Using cash flow hedge accounting, fair values are reported in other long-term investments or other liabilities. Changes in fair value are reported in accumulated other comprehensive income and amortized into net investment income or reported in other realized investment gains and losses as interest or principal payments are received.

Cash flows. Under the terms of these various contracts, the Company periodically exchanges cash flows between variable and fixed interest rates and/or between two currencies for both principal and interest. Foreign currency and combination swaps are primarily Euros,Australian dollars,Canadian dollars, Japanese yen, and British pounds, and have terms for periods of up to seven years. Net interest cash flows are reported in operating activities.

Volume of activity. The following table provides the notional values of these derivative instruments for the indicated periods:

	Notional Amount (In millions)
		As of		As of
Instrument		June 30, 2014		December 31, 2013
Interest rate swaps	$	44	$	45
Foreign currency swaps		111		118
Combination interest rate and foreign currency swaps		40		40
Total	$	195	$	203

The following table provides the effect of these derivative instruments on the financial statements for the indicated periods:

Fair Value Effect on the Financial Statements (In millions)
	Other Long-Term Investments (2)				Accounts Payable, Accrued Expenses and Other Liabilities (2)				Gain (Loss) Recognized in Other Comprehensive Income (1)
	As of June 30,		As of December 31,		As of June 30,		As of December 31,		For the three months ended June 30,				For the six months ended June 30,
Instrument	2014		2013		2014		2013		2014		2013		2014		2013
Interest rate swaps	$	1	$	2	$	-	$	-	$	-	$	-	$	(1)	$	(1)
Foreign currency swaps		1		1		12		13		-		-		2		4
Combination interest rate and foreign currency swaps		-		-		5		2		(1)		10		(2)		9
Total	$	2	$	3	$	17	$	15	$	(1)	$	10	$	(1)	$	12
(1) Other comprehensive income for foreign currency swaps excludes amounts required to adjust future policy benefits for the run-off settlement annuity business.
(2) There were no amounts offset in the Consolidated Balance Sheets at June 30, 2014 or December 31, 2013.

For the three months and six months ended June 30, 2014 and 2013, the amounts of gains (losses) reclassified from accumulated other comprehensive income into shareholders' net income were not material. No amounts were excluded from the assessment of hedge effectiveness and no gains (losses)were recognized due to hedge ineffectiveness.

Interest Rate Fair Value Hedges

Purpose. Beginning in 2014, the Company entered into centrally clearedinterest rate swap contracts to convert a portion of the interest rate exposure on its long-term debt from fixed to variable rates to more closely align interest expense with interest income received on its cash equivalent and short-term investment balances. The variable rates are benchmarked to LIBOR.

Accounting Policy. Using fair value hedge accounting, the fair values of the swap contracts are reported in other assets or other liabilities. As the critical terms of these swaps match those of the long-term debt being hedged, the carrying value of the hedged debt is adjusted to reflect changes in its fair value driven by LIBOR. The effects of those adjustments on other operating expense are offset by the effects of corresponding changes in the swaps' fair value. Interest expense includes the difference between the variable and fixed interest rates.

Cash flows. Under the terms of these contracts, the Company provides upfront margin and settles fair value changes and net interest between variable and fixed interest rates daily with the clearinghouse. Net interest cash flows are reported in operating activities.

Volume of activity. As of June 30, 2014, the notional values of these derivative instruments was $675 million.

For the three months ended June 30, 2014, interest expense included gains of $7 million for changes in the swap fair value and corresponding losses of $7 million to adjust the carrying value of the hedged debt. For the six months ended June 30, 2014, interest expense includedgains of $6 million for changes in the swap fair value and corresponding losses of $6 million to adjust the carrying value of the hedged debt.

As of June 30, 2014, the effects of these derivative instruments on the Consolidated Balance Sheets were not material.

Derivative instruments associated with the Company's run-off reinsurance business.

As explained in Note 5, the Company entered into an agreementin 2013 to effectively exit the GMIB and GMDB business. As a result, the following disclosures related to derivative instruments associated with the GMIB and GMDB business are provided for context, including a description of the derivative accounting for the GMIB contracts. Cash flows on derivative instruments associated with the GMIB and GMDB business are reported in operating activities.

Guaranteed Minimum Income Benefits (GMIB)

Purpose.The Company has written reinsurance contracts with issuers of variable annuity contracts that provide annuitants with certain guarantees of minimum income benefits resulting from the level of variable annuity account values compared with a contractually guaranteed amount (“GMIB liabilities”). According to the contractual terms of the written reinsurance contracts, payment by the Company depends on the actual account value in the underlying mutual funds and the level of interest rates when the contractholders elect to receive minimum income payments.

The fair value effects of GMIB contracts on the financial statements are included in Note 7 and their volume of activity is included in Note 16. Further information on these contracts is also presented in Note 5.

GMDB and GMIB Hedge Programs

As a result of the reinsurance agreement with Berkshire to effectively exit the GMDB and GMIB business, the GMDB and GMIB hedge programs were terminated beginning February 4, 2013. See Note 5 for further details regarding this business.

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Document and Entity Information	6 Months Ended
	Jun. 30, 2014	Jul. 15, 2014
Document Document And Entity Information [Abstract]
Document Type	10-Q
Document Period End Date	Jun. 30, 2014
Entity Registrant Name	CIGNA Corporation
Entity Central Index Key	0000701221
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Trading Symbol	CI
Entity Common Stock Shares Outstanding		263,817,071
Amendment Flag	false
Entity Current Reporting Status	Yes
Entity Well Known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q2

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Variable Interest Entities

6 Months Ended

Jun. 30, 2014

Variable Interest Entities [Abstract]

Variable interest entities

Note 10 – Variable Interest Entities

When the Company becomes involved with a variable interest entity and when the nature of the Company's involvement with the entity changes, to determine if the Company is the primary beneficiary and must consolidate the entity, it evaluates:

• the structure and purpose of the entity;
• the risks and rewards created by and shared through the entity; and
• the entity's participants' ability to direct its activities, receive its benefits and absorb its losses. Participants include the entity's sponsors, equity holders, guarantors, creditors and servicers.

In the normal course of its investing activities, the Company makes passive investments in securities that are issued by variable interest entities for which the Company is not the sponsor or manager. These investments are predominantly asset-backed securities primarily collateralized by foreign bank obligations or mortgage-backed securities. The asset-backed securities largely represent fixed-rate debt securities issued by trusts that hold perpetual floating-rate subordinated notes issued by foreign banks. The mortgage-backed securities represent senior interests in pools of commercial or residential mortgages created and held by special-purpose entities to provide investors with diversified exposure to these assets. The Company owns senior securities issued by several entities and receives fixed-rate cash flows from the underlying assets in the pools.

To provide certain services to its Medicare Advantage customers, the Company contracts with independent physician associations (“IPAs”) that are variable interest entities. Physicians provide health care services to the Medicare Advantage customers and the Company provides medical management and administrative services to the IPAs.

The Company is not the primary beneficiary and does not consolidate these entities because either:

• it had no power to direct the activities that most significantly impact the entities' economic performance; or
• it had neither the right to receive benefits nor the obligation to absorb losses that could be significant to these variable interest entities.

The Company has not provided, and does not intend to provide, financial support to these entities that it is not contractually required to provide. The Company performs ongoing qualitative analyses of its involvement with these variable interest entities to determine if consolidation is required. The Company's maximum potential exposure to loss related to the investment entities is limited to the carrying amount of its investment reported in fixed maturities and equity securities, and its aggregate ownership interest is insignificant relative to the total principal amount issued by these entities. The Company's maximum exposure to loss related to the IPA arrangements is limited to their liability for incurred but not reported claims for the Company's Medicare Advantage customers. These liabilities are not material and are generally secured by deposits maintained by the IPAs.

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Consolidated Statements of Total Comprehensive Income (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Statement Of Comprehensive Income [Abstract]
Shareholders' comprehensive income (loss)	$ 733	$ 247	$ 1,348	$ 219
Net income attributable to redeemable noncontrolling interest	2	1	5	3
Net income attributable to other noncontrolling interest	(3)	0	(5)	0
Other comprehensive income (loss) attributable to redeemable noncontrolling interest	3	(6)	0	(9)
Other comprehensive income (loss) attributable to other noncontrolling interest	0	0	1	0
Total comprehensive income	$ 735	$ 242	$ 1,349	$ 213

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Global Health Care Medical Claims Payable

6 Months Ended

Jun. 30, 2014

Liability For Unpaid Claims And Claims Adjustment Expense [Line Items]

Global Health Care Medical Claims Payable

Note 4— Global Health Care Medical Claims Payable

Medical claims payable for the Global Health Care segment reflects estimates of the ultimate cost of claims that have been incurred but not yet reported, those that have been reported but not yet paid (reported claims in process), and other medical expenses payablethat is primarily comprised of accruals for incentives and other amounts payable to health care professionals and facilities, as follows:

	June 30,		December 31,
(In millions)	2014		2013
Incurred but not yet reported	$	1,842	$	1,615
Reported claims in process		310		355
Physician incentives and other medical expense payable		124		80
Medical claims payable	$	2,276	$	2,050

Activity in medical claims payable was as follows:

	For the period ended
	June 30,		December 31,
(In millions)	2014		2013
Balance at January 1,	$	2,050	$	1,856
Less: Reinsurance and other amounts recoverable		194		242
Balance at January 1, net		1,856		1,614
Incurred claims related to:
Current year		8,390		16,049
Prior years		(140)		(182)
Total incurred		8,250		15,867
Paid claims related to:
Current year		6,606		14,267
Prior years		1,469		1,358
Total paid		8,075		15,625
Ending Balance, net		2,031		1,856
Add: Reinsurance and other amounts recoverable		245		194
Ending Balance	$	2,276	$	2,050

Reinsurance and other amounts recoverable includesamounts due from reinsurers and policyholders to cover incurred but not reported and pending claims for minimum premium products and certain administrative services only business where the right of offset does not exist. See Note 5 for additional information on reinsurance. For the six months ended June 30, 2014, actual experience differed from the Company's key assumptions resulting in favorable incurred claims related to prior years' medical claims payable of $140 million, or 0.9%of the current year incurred claims as reported for the year ended December 31, 2013. Actual completion factors accounted for $51 million, or 0.3% of the favorability while actual medical cost trend resulted in the remaining $89 million, or 0.6%.

For the year ended December 31, 2013, actual experience differed from the Company's key assumptions, resulting in favorable incurred claims related to prior years' medical claims payable of $182 million, or 1.3% of the current year incurred claims as reported for the year ended December 31, 2012. Actual completion factors accounted for $74 million, or 0.5% of favorability while actual medical cost trend resulted in the remaining $108 million, or 0.7%.

The impact of prior year development on shareholders' net incomewas $46 million for thesix months ended June 30, 2014compared with $68 million for the six months endedJune 30, 2013. The favorable effect of prior year development for both years primarily reflects low utilization of medical services. The change in the amount of the incurred claims related to prior years in the medical claims payable liability does not directly correspond to an increase or decrease in the Company's shareholders' net income recognized for the following reasons:

First, the Company consistently recognizes the actuarial best estimate of the ultimate liability within a level of confidence, as required by actuarial standards of practice that require the liabilities be adequate under moderately adverse conditions. As the Company establishes the liability for each incurral year, the Company ensures that its assumptions appropriately consider moderately adverse conditions.When a portion of the development relates to a release of the prior year's provision for moderately adverse conditions, the Company does not consider that amount as impacting shareholders' net income to the extent that it is offset by an increase determined appropriate to address moderately adverse conditions for the current year incurred claims.

Second, as a result of the MLR provisions of Health Care Reform, changes in medical claim estimates due to prior year development may be offset by a change in the MLR rebate accrual.

Third, changes in reserves for the Company's retrospectively experience-rated business for accounts in surplus do not usually impact shareholders' net income because such amounts are generally offset by a change in the liability to the policyholder. An account is in surplus when the accumulated premium received exceeds the accumulated medical costs and administrative charges, including profit charges. For additional information regarding the Company's retrospectively experience-rated business, see page 3 of the Company's 2013 Form 10-K.

The determination of liabilities for the Global Health Care medical claims payable requires the Company to make critical accounting estimates. See Note 2(N) to the Consolidated Financial Statements in the Company's 2013 Form 10-K.

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Earnings Per Share

6 Months Ended

Jun. 30, 2014

Earnings Per Share [Abstract]

Earnings Per Share

Note 3 — EarningsPer Share (“EPS”)

Basic and diluted earnings per share were computed as follows:

			Effect of
(Dollars in millions, except per share amounts)	Basic		Dilution		Diluted
Three Months Ended June 30,
2014
Shareholders' net income	$	573			$	573
Shares (in thousands):
Weighted average		265,377				265,377
Common stock equivalents				4,544		4,544
Total shares		265,377		4,544		269,921
EPS	$	2.16	$	(0.04)	$	2.12
2013
Shareholders' net income	$	505			$	505
Shares (in thousands):
Weighted average		282,043				282,043
Common stock equivalents				5,043		5,043
Total shares		282,043		5,043		287,086
EPS	$	1.79	$	(0.03)	$	1.76

			Effect of
(Dollars in millions, except per share amounts)	Basic		Dilution		Diluted
Six Months Ended June 30,
2014
Shareholders' net income	$	1,101			$	1,101
Shares (in thousands):
Weighted average		267,665				267,665
Common stock equivalents				4,516		4,516
Total shares		267,665		4,516		272,181
EPS	$	4.11	$	(0.06)	$	4.05
2013
Shareholders' net income	$	562			$	562
Shares (in thousands):
Weighted average		282,919				282,919
Common stock equivalents				5,248		5,248
Total shares		282,919		5,248		288,167
EPS	$	1.99	$	(0.04)	$	1.95

The followingoutstanding employee stock options were notincluded in the computation of diluted earnings per share for the three and six months ended June 30, 2014 and 2013 because their effect was anti-dilutive.

	Three Months Ended		Six Months Ended
	June 30,		June 30,
(In millions)	2014	2013	2014	2013
Antidilutive options	2.0	1.8	2.0	1.8

The Company held 101,424,330shares of common stock in Treasury as of June 30, 2014, and 82,496,367 shares as of June 30, 2013.

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Segment Information

6 Months Ended

Jun. 30, 2014

Segment Information Details [Abstract]

Segment Information [Text Block]

Note 15 ― Segment Information

Effective with the first quarter of 2014, the Company has combined the results of its run-off reinsurance business with other immaterial operating segments in Other Operations. Prior year segment information has been conformed to the current presentation.

The financial results of the Company's businesses are reported in the following segments:

Global Health Care aggregates the Commercial and Government operating segments due to their similar economic characteristics, products and services and regulatory environment:

• The Commercial operating segment encompasses both the U.S. commercial and certain international health care businesses serving employers and their employees, other groups, and individuals. Products and services include medical, dental, behavioral health, vision, and prescription drug benefit plans, health advocacy programs and other products and services to insured and self-insured customers.

• The Government operating segment offers Medicare Advantage and Medicare Part D plans to seniors and Medicaid plans.

Global Supplemental Benefits includes supplemental health, life and accident insurance products offered in selected international markets and in the U.S.

Group Disability and Life provides group long-term and short-term disability, group life, accident and specialty insurance products and related services.

The Company also reports results in two other categories.

Other Operations consist of:

• corporate-owned life insurance (“COLI”);
• run-off reinsurance business that is predominantly comprised of GMDB and GMIB business effectively exited through reinsurance with Berkshire in 2013;

• deferred gains recognized from the 1998 sale of the individual life insurance and annuity business and the 2004 sale of the retirement benefits business; and
• run-off settlement annuity business.

Corporate reflects amounts not allocated to other segments, such as net interest expense (defined as interest on corporate debt less net investment income on investments not supporting segment operations), interest on uncertain tax positions, certain litigation matters, intersegment eliminations, compensation cost for stock options, expense associated with its frozen pension plans and certain corporate project and overhead costs.

The Company measures the financial results of its segments using “segment earnings (loss)”, defined as shareholders' net income (loss) excluding after-tax realized investment gains and losses.

Summarized segment financial information was as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions)	2014		2013		2014		2013
Premiums and fees, Mail order pharmacy revenues and Other revenues
Global Health Care	$	6,726	$	6,171	$	13,272	$	12,468
Global Supplemental Benefits		729		622		1,419		1,234
Group Disability and Life		891		847		1,806		1,705
Other Operations		30		30		60		23
Corporate		(2)		(5)		(6)		(8)
Total	$	8,374	$	7,665	$	16,551	$	15,422
Shareholders' net income
Global Health Care	$	402	$	379	$	841	$	806
Global Supplemental Benefits		61		49		114		104
Group Disability and Life		110		104		177		102
Other Operations		13		15		30		(447)
Corporate		(56)		(59)		(131)		(113)
Segment earnings		530		488		1,031		452
Realized investment gains, net of taxes		43		17		70		110
Shareholders' net income	$	573	$	505	$	1,101	$	562

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Pension and Other Postretirement Benefit Plans

6 Months Ended

Jun. 30, 2014

Pension And Other Postretirement Benefit Plans [Abstract]

Pension and Other Postretirement Benefit Plans

Note 11 — Pension and Other Postretirement Benefit Plans

The Company and certain of its subsidiaries provide pension, health care and life insurance defined benefits to eligible retired employees, spouses and other eligible dependents through various domestic and foreign plans. The effect of its foreign pension and other postretirement benefit plans is immaterial to the Company's results of operations, liquidity and financial position. The Company froze its defined benefit postretirement medical plan in the first quarter of 2013 and its primary domestic pension plans in 2009.

In the first quarter of 2013, the Company also announced a change in the cost sharing arrangement with retirees for pharmacy subsidy payments received from the U.S. Government effective January 1, 2014, resulting in a reduced other postretirement benefit obligation of $57 million. This reduction was recorded in accumulated other comprehensive income, net of deferred taxes, resulting in an after-tax increase to shareholders' equity of $37 million.

For the six months ended June 30, 2014, the Company's unrecognized actuarial losses and prior service costs (reported in accumulated other comprehensive income) decreased by $ 36 million pre-tax in the aggregate ($ 23 million after-tax) resulting in an increase in shareholders' equity. This change was primarily a result of normal amortization,and the settlement loss related to the non-qualified pension plan caused by lump sum payments that exceeded the expected annual interest cost.

Pension and Other Postretirement Benefits. Components of net pension and net other postretirement benefit costs were as follows:

	Pension Benefits								Other Postretirement Benefits
	Three Months Ended				Six Months Ended				Three Months Ended				Six Months Ended
	June 30,				June 30,				June 30,				June 30,
(In millions)	2014		2013		2014		2013		2014		2013		2014		2013
Service cost	$	1	$	-	$	1	$	1	$		$	-	$	-	$	-
Interest cost		52		46		103		91		3		3		6		6
Expected long-term return on plan assets		(66)		(68)		(132)		(136)				-		-		-
Amortization of:
Net loss from past experience		15		18		29		37				-		-		-
Prior service cost				-		-		-		-		(1)		(1)		(3)
Curtailment gain				-		-		-				-		-		(19)
Settlement loss				-		6		-				-		-		-
Net cost	$	2	$	(4)	$	7	$	(7)	$	3	$	2	$	5	$	(16)

The Company funds its domestic qualified pension plans at least at the minimum amount required by the Pension Protection Act of 2006. For the six months ended June 30, 2014, the Company made required contributions of $113 million andis not required to make additional contributions for the remainder of 2014.

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Fair Value Measurements

6 Months Ended

Jun. 30, 2014

Fair Value Disclosures [Abstract]

Fair value measurements

Note7―Fair Value Measurements

The Company carries certain financial instruments at fair value in the financial statements including fixed maturities, equity securities, short-term investments and derivatives.  Other financial instruments are measured at fair value under certain conditions, such as when impaired.

Fair value is defined as the price at which an asset could be exchanged in an orderly transaction between market participants at the balance sheet date.  A liability's fair value is defined as the amount that would be paid to transfer the liability to a market participant, not the amount that would be paid to settle the liability with the creditor.

The Company's financial assets and liabilities carried at fair value have been classified based upon a hierarchy defined by GAAP.  The hierarchy gives the highest ranking to fair values determined using unadjusted quoted prices in active markets for identical assets and liabilities (Level 1) and the lowest ranking to fair values determined using methodologies and models with unobservable inputs (Level 3). An asset's or a liability's classification is based on the lowest level of input that is significant to its measurement.  For example, a financial asset or liability carried at fair value would be classified in Level 3 if unobservable inputs were significant to the instrument's fair value, even though the measurement may be derived using inputs that are both observable (Levels 1 and 2) and unobservable (Level 3).

The Company estimates fair values using prices from third parties or internal pricing methods. Fair value estimates received from third-party pricing services are based on reported trade activity and quoted market prices when available, and other market information that a market participant may use to estimate fair value. The internal pricing methods are performed by the Company's investment professionalsand generally involve using discounted cash flow analyses, incorporating current market inputs for similar financial instruments with comparable terms and credit quality, as well as other qualitative factors.  In instances where there is little or no market activity for the same or similar instruments, fair value is estimated using methods, models and assumptions that the Company believes a hypothetical market participant would use to determine a current transaction price.  These valuation techniques involve some level of estimation and judgment that becomes significant with increasingly complex instruments or pricing models.  

The Company is responsible for determining fair value, as wellas the appropriate level within the fair value hierarchy, based on the significance of unobservable inputs. The Company reviews methodologies, processes and controls of third-party pricing services and compares prices on a test basis to those obtained from other external pricing sources or internal estimates. The Company performs ongoing analyses of both prices received from third-party pricing services and those developed internally to determine that they represent appropriate estimates of fair value. The controls completed by the Company and third-party pricing services include reviewing to ensure that prices do not become stale and whether changes from prior valuations are reasonable or require additional review. The Company also performs sample testing of sales values to confirm the accuracy of prior fair value estimates. Exceptions identified during these processes indicate that adjustments to prices are infrequent and do not significantly impact valuations.

Financial Assets and Financial Liabilities Carried at Fair Value

The following tables provide information as of June 30, 2014 and December 31, 2013 about the Company's financial assets and liabilities carried at fair value. Separate account assetsthat are also recorded at fair value on the Company's Consolidated Balance Sheets are reported separately under the heading “Separate account assets” as gains and losses related to these assets generally accrue directly to policyholders.

June 30, 2014
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Financial assets at fair value:
Fixed maturities:
Federal government and agency	$	583	$	669	$	-	$	1,252
State and local government		-		2,023		-		2,023
Foreign government		-		1,677		29		1,706
Corporate		-		11,897		500		12,397
Federal agency mortgage-backed		-		69		-		69
Other mortgage-backed		-		77		1		78
Other asset-backed		-		252		544		796
Total fixed maturities (1)		583		16,664		1,074		18,321
Equity securities		1		82		48		131
Subtotal		584		16,746		1,122		18,452
Short-term investments		-		232		-		232
GMIB assets (2)		-		-		863		863
Other derivative assets (3)		-		2		-		2
Total financial assets at fair value, excluding separate accounts	$	584	$	16,980	$	1,985	$	19,549
Financial liabilities at fair value:
GMIB liabilities	$	-	$	-	$	839	$	839
Other derivative liabilities (3)		-		17		-		17
Total financial liabilities at fair value	$	-	$	17	$	839	$	856

(1) Fixed maturities included $690 million of net appreciation required to adjust future policy benefits for the run-off settlement annuity business including $78 million of appreciation for securities classified in Level 3.

(2) The GMIB assets represent retrocessional contracts in place from three external reinsurers that cover the exposures on these contracts.See Note 5 for additional information.

(3) Other derivative assets and other derivative liabilities reflected foreign currency and interest rate swaps qualifying as cash flow hedges. See Note 9 for additional information.

December 31, 2013
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Financial assets at fair value:
Fixed maturities:
Federal government and agency	$	297	$	583	$	-	$	880
State and local government		-		2,144		-		2,144
Foreign government		-		1,421		23		1,444
Corporate		-		10,476		505		10,981
Federal agency mortgage-backed		-		76		-		76
Other mortgage-backed		-		76		1		77
Other asset-backed		-		282		602		884
Total fixed maturities (1)		297		15,058		1,131		16,486
Equity securities		8		74		59		141
Subtotal		305		15,132		1,190		16,627
Short-term investments		-		631		-		631
GMIB assets (2)		-		-		751		751
Other derivative assets (3)		-		3		-		3
Total financial assets at fair value, excluding separate accounts	$	305	$	15,766	$	1,941	$	18,012
Financial liabilities at fair value:
GMIB liabilities	$	-	$	-	$	741	$	741
Other derivative liabilities (3)		-		16		-		16
Total financial liabilities at fair value	$	-	$	16	$	741	$	757

(1) Fixed maturities included $458 million of net appreciation required to adjust future policy benefits for the run-off settlement annuity business including $60million of appreciation for securities classified in Level 3.

(2) The GMIB assets represented retrocessional contracts in place from three external reinsurers that cover the exposures on these contracts. See Note 5 for additional information.

(3) Other derivative assets reflected interest rate and foreign currency swaps qualifying as cash flow hedges. Other derivative liabilities included $15 million of interest rate and foreign currency swaps qualifying as cash flow hedges and $1 million of interest rate and foreign currency swaps not designated as accounting hedges. See Note 9 for additional information.

Level 1 Financial Assets

Inputs for instruments classified in Level 1 include unadjusted quoted prices for identical assets in active markets accessible at the measurement date.  Active markets provide pricing data for trades occurring at least weekly and include exchanges and dealer markets.

Assets in Level 1 include actively-traded U.S. government bonds and exchange-listed equity securities.Given the narrow definition of Level 1 and the Company's investment asset strategy to maximize investment returns, a relatively small portion of the Company's investment assets are classified in this category.

Level 2 Financial Assets and Financial Liabilities

Inputs for instruments classified in Level 2 include quoted prices for similar assets or liabilities in active markets, quoted prices from those willing to trade in markets that are not active, or other inputs that are market observable or can be corroborated by market data for the term of the instrument.  Such other inputs include market interest rates and volatilities, spreads and yield curves. An instrument is classified in Level 2 if the Company determines that unobservable inputs are insignificant.

Fixed maturities and equity securities.Approximately91% of the Company's investments in fixed maturities and equity securities are classified in Level 2 including most public and private corporate debt and equity securities, federal agency and municipal bonds, non-government mortgage-backed securities and preferred stocks.  Because many fixed maturities do not trade daily, third-party pricing services and internal methods often use recent trades of securities with similar features and characteristics. When recent trades are not available, pricing models are used to determine these prices.  These models calculate fair values by discounting future cash flows at estimated market interest rates.  Such market rates are derived by calculating the appropriate spreads over comparable U.S. Treasury securities, based on the credit quality, industry and structure of the asset. Typical inputs and assumptions to pricing models include, but are not limited to, a combination of benchmark yields, reported trades, issuer spreads, liquidity, benchmark securities, bids, offers, reference data, and industry and economic events.  For mortgage-backed securities, inputs and assumptions may also include characteristics of the issuer, collateral attributes, prepayment speeds and credit rating.

Nearly all of these instruments are valued using recent trades or pricing models. Less than 1% of the fair value of investments classified in Level 2 represent foreign bonds thatare valued using a single unadjusted market-observable input derived by averaging multiple broker-dealer quotes, consistent with local market practice.

Short-term investments are carried at fair value which approximates cost. On a regular basis the Company compares market prices for these securities to recorded amounts to validate that current carrying amounts approximate exit prices. The short-term nature of the investments and corroboration of the reported amounts over the holding period support their classification in Level 2.

Other derivatives classified in Level 2 represent over-the-counter instruments such as interest rate and foreign currency swap contracts.  Fair values for these instruments are determined using market observable inputs including forward currency and interest rate curves and widely published market observable indices.  Credit risk related to the counterparty and the Company is considered when estimating the fair values of these derivatives.  However, the Company is largely protected by collateral arrangements with counterparties, and determined that no adjustment for credit risk was required as of June 30, 2014 or December 31, 2013.  Level 2 also includes exchange-traded interest rate swap contracts. Credit risk related to the clearinghouse counterparty and the Company is considered minimal when estimating the fair values of these derivatives because of upfront margin deposits and daily settlement requirements. The nature and use of these other derivatives are described in Note 9.

Level 3 Financial Assets and Financial Liabilities

Certain inputs for instruments classified in Level 3 are unobservable (supported by little or no market activity) and significant to their resulting fair value measurement.  Unobservable inputs reflect the Company's best estimate of what hypothetical market participants would use to determine a transaction price for the asset or liability at the reporting date.

The Company classifies certain newly issued, privately-placed, complex or illiquid securities, as well as assets and liabilities relating to GMIB, in Level 3.

Fixed maturities and equity securities.  Approximately 6% of fixed maturities and equity securities are priced using significant unobservable inputs and classified in this category, including:

	June 30,		December 31,
(In millions)	2014		2013
Other asset and mortgage-backed securities - valued using pricing models	$	545	$	603
Corporate and government fixed maturities - valued using pricing models		456		417
Corporate fixed maturities - valued at transaction price		73		111
Equity securities - valued at transaction price		48		59
Total	$	1,122	$	1,190

Fair values of other asset and mortgage-backed securities, corporate and government fixed maturities are primarily determined using pricing models that incorporate the specific characteristics of each asset and related assumptions including the investment type and structure, credit quality, industry and maturity date in comparison to current market indices, spreads and liquidity of assets with similar characteristics.  For other asset and mortgage-backed securities, inputs and assumptions for pricing may also include collateral attributes and prepayment speeds.  Recent trades in the subject security or similar securities are assessed when available, and the Company may also review published research, as well as the issuer's financial statements, in its evaluation. Approximately 10% of fixed maturities classified in Level 3 represent single, unadjusted, non-binding broker quotes that are not considered market observable. Certain private equity investments and subordinated corporate fixed maturities, representing approximately 10% of securities included in Level 3, are valued at transaction price in the absence of market data indicating a change in the estimated fair values.

Quantitative Information about Unobservable Inputs

The following tables summarize the fair value and significant unobservable inputs used in pricing Level 3 securities that were developed directly by the Company as of June 30, 2014 and December 31, 2013. The range and weighted average basis point amounts reflect the Company's best estimates of the unobservable adjustments a market participant would make to the market observable spreads (adjustment to discount rates) used to calculate the fair values in a discounted cash flow analysis.

Other asset and mortgage-backed securities.The significant unobservable inputs used to value the following other asset and mortgage-backed securities are liquidity and weighting of credit spreads. When there is limited trading activity for the security, an adjustment for liquidity is made as of the measurement date that considers current market conditions, issuer circumstances and complexity of the security structure. An adjustment to weight credit spreads is needed to value a more complex bond structure with multiple underlying collateral and no standard market valuation technique. The weighting of credit spreads is primarily based on the underlying collateral's characteristics and their proportional cash flows supporting the bond obligations. The resulting wide range of unobservable adjustments in the table below is due to the varying liquidity and quality of the underlying collateral, ranging from high credit quality to below investment grade.

Corporate and government fixed maturities.The significant unobservable input used to value the following corporate and government fixed maturities is an adjustment for liquidity. When there is limited trading activity for the security, an adjustment is needed to reflect current market conditions and issuer circumstances.

As of June 30, 2014			Unobservable Input	Unobservable Adjustment to Discount Rates Range (Weighted Average) in Basis Points
(In millions except basis points)		Fair Value
Other asset and mortgage-backed securities	$	537	Liquidity	40-500 (160)
			Weighting of credit spreads	130-2,650 (250)
Corporate and government fixed maturities	$	391	Liquidity	80-390 (180)

As of December 31, 2013			Unobservable Input	Unobservable Adjustment to Discount Rates Range (Weighted Average) in Basis Points
(In millions except basis points)		Fair Value
Other asset and mortgage-backed securities	$	593	Liquidity	60 - 620 (170)
			Weighting of credit spreads	120 - 2,090 (290)
Corporate and government fixed maturities	$	305	Liquidity	80 - 370 (200)

Significant increases in any of these inputs would result in a lower fair value measurement while decreases in these inputs would result in a higher fair value measurement. Generally, the unobservable inputs are not interrelated and a change in the assumption used for one unobservable input is not accompanied by a change in the other unobservable input. The tables do not include Level 3 securities when fair value and significant unobservable inputs were not developed directly by the Company, including securities using single, unadjusted non-binding broker quotes and securities valued at transaction price. See the preceding discussion regarding the Company's valuation processes and controls.

Guaranteed minimum income benefit contracts.As discussed in Note 5, the Company effectively exited from this business in 2013. Although theseGMIB assets and liabilities must continue to be reported as derivatives at fair value, the only assumption that is expected to impact future shareholders' net income is the risk of non-performance. This assumption reflects a market participant's view of (a) the risk of the Company not fulfilling its GMIB obligations (GMIB liabilities) and (b) the credit risk that the reinsurers do not pay their obligations (GMIB assets).

The Company reports GMIB liabilities and assets as derivatives at fair value because cash flows of these liabilities and assets are affected by equity markets and interest rates, but are without significant life insurance risk and are settled in lump sum payments. Under the terms of these written and purchased contracts, the Company periodically receives and pays fees based on either contractholders' account values or deposits increased at a contractual rate. The Company will also pay and receive cash depending on changes in account values and interest rates when contractholders first elect to receive minimum income payments. The Company estimates the fair value of the assets and liabilities for GMIB contracts by calculating the results for many scenarios run through a model utilizing various assumptions that include non-performance risk, among other things.

The non-performance risk adjustment is incorporated by adding an additional spread to the discount rate in the calculation of both (a) the GMIB liabilities to reflect a market participant's view of the risk of the Company not fulfilling its GMIB obligations, and (b) the GMIB assets to reflect a market participant's view of the credit risk of the reinsurers, after considering collateral. Non-performance risk adjustments had an immaterial effect on shareholders' net income for the three months and six months ended June 30, 2014 and 2013.

Other assumptions that affect GMIB assets and liabilities include capital market assumptions (including market returns, interest rates and market volatilities of the underlying equity and bond mutual fund investments) and future annuitant behavior (including mortality, lapse, and annuity election rates). As certain assumptions used to estimate fair values for these contracts are largely unobservable (primarily related to future annuitant behavior), the Company classifies GMIB assets and liabilities in Level 3.

The Company regularly evaluates each of the assumptions used in establishing these assets and liabilities. Significant decreases in assumed lapse rates or spreads used to calculate non-performance risk, or increases in assumed annuity election rates would result in higher fair value measurements. A change in one of these assumptions is not necessarily accompanied by a change in another assumption.

GMIB liabilities are reported in the Company's Consolidated Balance Sheets in accounts payable, accrued expenses and other liabilities.  GMIB assets associated with these contracts represent net receivables in connection with reinsurance that the Company has purchased from three external reinsurers and are reported in the Company's Consolidated Balance Sheets in other assets, including other intangibles.

Changes in Level 3 Financial Assets and Financial Liabilities Carried at Fair Value

The following tables summarize the changes in financial assets and financial liabilities classified in Level 3 for the three months and six months endedJune 30, 2014 and 2013.  Separate account asset changes are reported separately under the heading “Separate account assets” as the changes in fair values of these assets accrue directly to the policyholders. Gains and losses reported in these tables may include net changes in fair value that are attributable to both observable and unobservable inputs.

For the Three Months Ended June 30, 2014
	Fixed Maturities & Equity Securities		GMIB Assets		GMIB Liabilities		GMIB Net
(In millions)
Balance at April 1, 2014	$	1,198	$	815	$	(794)	$	21
Gains (losses) included in shareholders' net income:
GMIB fair value gain/(loss)		-		53		(53)		-
Other		2		3		(2)		1
Total gains (losses) included in shareholders' net income		2		56		(55)		1
Gains included in other comprehensive income		9		-		-		-
Gains required to adjust future policy benefits for settlement annuities (1)		20		-		-		-
Purchases, sales and settlements:
Purchases		53		-		-		-
Sales		(91)		-		-		-
Settlements		(46)		(8)		10		2
Total purchases, sales and settlements		(84)		(8)		10		2
Transfers into/(out of) Level 3:
Transfers into Level 3		30		-		-		-
Transfers out of Level 3		(53)		-		-		-
Total transfers into/(out of) Level 3		(23)		-		-		-
Balance at June 30, 2014	$	1,122	$	863	$	(839)	$	24
Total gains (losses) included in shareholders' net income attributable
to instruments held at the reporting date	$	1	$	56	$	(55)	$	1
(1) Amounts do not accrue to shareholders.
For the Three Months Ended June 30, 2013
	Fixed Maturities & Equity Securities		GMIB Assets		GMIB Liabilities		GMIB Net
(In millions)
Balance at April 1, 2013	$	1,288	$	1,117	$	(1,099)	$	18
Gains (losses) included in shareholders' net income:
GMIB fair value gain/(loss)		-		(156)		156		-
Other		4		1		-		1
Total gains (losses) included in shareholders' net income		4		(155)		156		1
Losses included in other comprehensive income		(16)		-		-		-
Losses required to adjust future policy benefits for settlement annuities (1)		(33)		-		-		-
Purchases, sales and settlements:
Purchases		35		-		-		-
Sales		(18)		-		-		-
Settlements		(10)		(17)		21		4
Total purchases, sales and settlements		7		(17)		21		4
Transfers into/(out of) Level 3:
Transfers into Level 3		15		-		-		-
Transfers out of Level 3		(56)		-		-		-
Total transfers into/(out of) Level 3		(41)		-		-		-
Balance at June 30, 2013	$	1,209	$	945	$	(922)	$	23
Total gains (losses) included in shareholders' net income attributable
to instruments held at the reporting date	$	2	$	(155)	$	156	$	1
(1) Amounts do not accrue to shareholders.

For the Six Months Ended June 30, 2014
	Fixed Maturities & Equity Securities		GMIB Assets		GMIB Liabilities		GMIB Net
(In millions)
Balance at January 1, 2014	$	1,190	$	751	$	(741)	$	10
Gains (losses) included in shareholders' net income:
GMIB fair value gain/(loss)		-		130		(130)		-
Other		14		2		10		12
Total gains (losses) included in shareholders' net income		14		132		(120)		12
Gains included in other comprehensive income		17		-		-		-
Gains required to adjust future policy benefits for settlement annuities (1)		42		-		-		-
Purchases, sales and settlements:
Purchases		77		-		-		-
Sales		(115)		-		-		-
Settlements		(107)		(20)		22		2
Total purchases, sales and settlements		(145)		(20)		22		2
Transfers into/(out of) Level 3:
Transfers into Level 3		154		-		-		-
Transfers out of Level 3		(150)		-		-		-
Total transfers into/(out of) Level 3		4		-		-		-
Balance at June 30, 2014	$	1,122	$	863	$	(839)	$	24
Total gains (losses) included in shareholders' net income attributable
to instruments held at the reporting date	$	2	$	132	$	(120)	$	12
(1) Amounts do not accrue to shareholders.
For the Six Months Ended June 30, 2013
	Fixed Maturities & Equity Securities		GMIB Assets		GMIB Liabilities		GMIB Net
(In millions)
Balance at January 1, 2013	$	1,351	$	622	$	(1,170)	$	(548)
Gains (losses) included in shareholders' net income:
GMIB fair value gain/(loss)		-		(205)		205		-
Other		10		2		-		2
Total gains (losses) included in shareholders' net income		10		(203)		205		2
Losses included in other comprehensive income		(17)		-		-		-
Losses required to adjust future policy benefits for settlement annuities (1)		(38)		-		-		-
Purchases, sales and settlements:
Purchases		40		-		-		-
Sales		(30)		-		-		-
Settlements		(61)		526		43		569
Total purchases, sales and settlements		(51)		526		43		569
Transfers into/(out of) Level 3:
Transfers into Level 3		69		-		-		-
Transfers out of Level 3		(115)		-		-		-
Total transfers into/(out of) Level 3		(46)		-		-		-
Balance at June 30, 2013	$	1,209	$	945	$	(922)	$	23
Total gains (losses) included in shareholders' net income attributable
to instruments held at the reporting date	$	4	$	(203)	$	205	$	2
(1) Amounts do not accrue to shareholders.

As noted in the tables above, total gains and losses included in shareholders' net income are reflected in the following captions in the Consolidated Statements of Income:

• Realized investment gains (losses) and net investment income for amounts related to fixed maturities and equity securities and realized investment gains (losses) for the impact of changes in non-performance risk related to GMIB assets and liabilities beginning February 4, 2013, similar to hedge ineffectiveness; and
• GMIB fair value (gain) loss for amounts related to GMIB assets and liabilities, except for the impact of changes in non-performance risk subsequent to February 4, 2013.

In the tables above, gains and losses included in other comprehensive income are reflected in net unrealized appreciation (depreciation) on securities in the Consolidated Statements of Comprehensive Income.

Reclassifications impacting Level 3 financial instruments are reported as transfers into or out of the Level 3 category as of the beginning of the quarter in which the transfer occurs. Therefore gains and losses in income only reflect activity for the periodthe instrument was classified in Level 3. 

Transfers into or out of the Level 3 category occur when unobservable inputs, such as the Company's best estimate of what a market participant would use to determine a current transaction price, become more or less significant to the fair value measurement. For the three months and six months ended June 30, 2014 and June 30, 2013, transfers between Level 2and Level 3 primarily reflect the change in significance of the unobservable inputs used to value certain public and private corporate bonds, principally related to liquidity of the securities and credit risk of the issuers.

Because GMIB reinsurance arrangements remain in effect at the reporting date, the Company has reflected the total gain or loss for the period as the total gain or loss included in income attributable to instruments still held at the reporting date.  However, the Company reduces the GMIB assets and liabilities resulting from these reinsurance arrangements when annuitants lapse, die, elect their benefit, or reach the age after which the right to elect their benefit expires.

Separate account assets

Fair values and changes in the fair values of separate account assets generally accrue directly to the policyholders and are excluded from the Company's revenues and expenses.  As of June 30, 2014 and December 31, 2013 separate account assets were as follows:

June 30, 2014
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Guaranteed separate accounts (See Note 16)	$	269	$	271	$	-	$	540
Non-guaranteed separate accounts (1)		1,851		5,178		1,074		8,103
Total separate account assets	$	2,120	$	5,449	$	1,074	$	8,643

(1) As of June 30, 2014, non-guaranteed separate accounts included $ 4.0 billion in assets supporting the Company's pension plans, including $1,020million classified in Level 3.

December 31, 2013
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Guaranteed separate accounts (See Note 16)	$	264	$	284	$	-	$	548
Non-guaranteed separate accounts (1)		1,844		4,825		1,035		7,704
Total separate account assets	$	2,108	$	5,109	$	1,035	$	8,252

(1) As of December 31, 2013, non-guaranteed separate accounts included $3.8 billion in assets supporting the Company's pension plans, including $983 million classified in Level 3.

Separate account assets in Level 1 primarily include exchange-listed equity securities.  Level 2 assets primarily include:

• corporate and structured bonds valued using recent trades of similar securities or pricing models that discount future cash flows at estimated market interest rates as described above; and
• actively-traded institutional and retail mutual fund investments and separate accounts priced using the daily net asset value which is the exit price.

Separate account assets classified in Level 3 include investments primarily in securities partnerships, real estate and hedge funds generally valued based on the separate account's ownership share of the equity of the investee including changes in the fair values of its underlying investments.

The following tables summarize the changes in separate account assets reported in Level 3 for the three andsix months ended June 30, 2014 and 2013.

	Three Months Ended
	June 30,
(In millions)	2014		2013
Balance at April 1,	$	1,069	$	1,011
Policyholder gains (1)		23		22
Purchases, sales and settlements:
Purchases		80		57
Sales		(2)		-
Settlements		(97)		(39)
Total purchases, sales and settlements		(19)		18
Transfers into/(out of) Level 3:
Transfers into Level 3		6		-
Transfers out of Level 3		(5)		(2)
Total transfers into/(out of) Level 3		1		(2)
Balance at June 30,	$	1,074	$	1,049

(1) Included in this amount are gains of $23 million attributable to instruments still heldat June 30, 2014 and gains of $22 millionattributable to instruments still held at June 30, 2013.

	Six Months Ended
	June 30,
(In millions)	2014		2013
Balance at January 1	$	1,035	$	1,005
Policyholder gains (1)		55		29
Purchases, sales and settlements:
Purchases		124		88
Sales		(2)		-
Settlements		(144)		(69)
Total purchases, sales and settlements		(22)		19
Transfers into/(out of) Level 3:
Transfers into Level 3		13		-
Transfers out of Level 3		(7)		(4)
Total transfers into/(out of) Level 3		6		(4)
Balance at June 30,	$	1,074	$	1,049

(1) Included in this amount are gains of $55 million attributable to instruments still held at June 30, 2014 and gains of $29 million attributable to instruments still held at June 30, 2013.

Assets and Liabilities Measured at Fair Value under Certain Conditions

Some financial assets and liabilitiesare not carried at fair value each reporting period, but may be measured using fair value only under certain conditions, such as investments in real estate entities and commercial mortgage loans when they become impaired. Impaired real estate entities and commercial mortgage loans representing less than 1% of total investments were written down to their fair values,resulting in realized investment losses of$10 million, after-tax forthesix months ended June 30, 2014 and $5 million, after-tax for the six months ended June 30, 2013.

Fair Value Disclosures for Financial Instruments Not Carried at Fair Value

The following table includesthe Company's financialinstruments not recorded at fair value that are subject to fair value disclosure requirements at June 30, 2014 and December 31, 2013.Financial instruments that are carried in the Company's Consolidated Financial Statements at amounts that approximate fair value are excluded from the following table.

(In millions)			June 30, 2014				December 31, 2013
	Classification in the Fair Value Hierarchy		Fair Value		Carrying Value		Fair Value		Carrying Value
Commercial mortgage loans	Level 3	$	2,321	$	2,217	$	2,338	$	2,252
Contractholder deposit funds, excluding universal life products	Level 3	$	1,130	$	1,116	$	1,081	$	1,072
Long-term debt, including current maturities, excluding capital leases	Level 2	$	5,721	$	4,984	$	5,550	$	4,997

The fair values presented in the table above have been estimated using market information when available. The following valuation methodologies and inputs are used by the Company to determine fair value.

Commercial mortgage loans. The Company estimates the fair value of commercial mortgage loans generally by discounting the contractual cash flows at estimated market interest rates that reflect the Company's assessment of the credit quality of the loans. Market interest rates are derived by calculating the appropriate spread over comparable U.S. Treasury rates, based on the property type, quality rating and average life of the loan. The quality ratings reflect the relative risk of the loan, considering debt service coverage, the loan-to-value ratio and other factors. Fair values of impaired mortgage loans are based on the estimated fair value of the underlying collateral generally determined using an internal discounted cash flow model.The fair value measurements were classified in Level 3 because the cash flow models incorporate significant unobservable inputs.

Contractholder deposit funds, excluding universal life products.Generally, these funds do not have stated maturities. Approximately 60% of these balances can be withdrawn by the customer at any time without prior notice or penalty. The fair value for these contracts is the amount estimated to be payable to the customer as of the reporting date, which is generally the carrying value. Most of the remaining contractholder deposit funds are reinsured by the buyers of the individual life and annuity and retirement benefits businesses. The fair value for these contracts is determined using the fair value of these buyers' assets supporting these reinsured contracts. The Company had reinsurance recoverables equal to the carrying values of these reinsured contracts. These instruments were classified in Level 3 because certain inputs are unobservable (supported by little or no market activity) and significant to their resulting fair value measurement.

Long-term debt, including current maturities, excluding capital leases.The fair value of long-term debt is based on quoted market prices for recent trades. When quoted market prices are not available, fair value is estimated using a discounted cash flow analysis and the Company's estimated current borrowing rate for debt of similar terms and remaining maturities.These measurements were classified in Level 2 because the fair values are based on quoted market prices or other inputs that are market observable or can be corroborated by market data.

Fair values of off-balance-sheet financial instruments were not material as of June 30, 2014 and December 31, 2013.

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Investments - Declines in Fair Value, Fixed Maturities (Details) (USD $) In Millions, unless otherwise specified	Jun. 30, 2014
Debt Securities [Member] | Investment Grade [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Available-for-sale Securities, Continuous Unrealized Loss Position, One Year or Less, Fair Value	$ 424
Available-for-sale Securities, Continuous Unrealized Loss Position, More Than One Year, Fair Value	401
Available For Sale Securities, Continuous Unrealized Loss Position, One Year or Less, Amortized Cost	430
Available-for-sale Securities, Continuous Unrealized Loss Position, More Than One Year, Amortized Cost	411
Available-for-sale Securities, Continuous Unrealized Loss Position, One Year or Less, Aggregate Losses	(6)
Available-for-sale Securities, Continuous Unrealized Loss Position, More Than One Year, Aggregate Losses	(10)
Debt Securities [Member] | Investment Grade [Member] | One Year Or Less [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	147
Debt Securities [Member] | Investment Grade [Member] | More Than One Year [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	159
Debt Securities [Member] | Below Investment Grade [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Available-for-sale Securities, Continuous Unrealized Loss Position, One Year or Less, Fair Value	235
Available-for-sale Securities, Continuous Unrealized Loss Position, More Than One Year, Fair Value	34
Available For Sale Securities, Continuous Unrealized Loss Position, One Year or Less, Amortized Cost	238
Available-for-sale Securities, Continuous Unrealized Loss Position, More Than One Year, Amortized Cost	37
Available-for-sale Securities, Continuous Unrealized Loss Position, One Year or Less, Aggregate Losses	(3)
Available-for-sale Securities, Continuous Unrealized Loss Position, More Than One Year, Aggregate Losses	(3)
Debt Securities [Member] | Below Investment Grade [Member] | One Year Or Less [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	126
Debt Securities [Member] | Below Investment Grade [Member] | More Than One Year [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	17
Equity securities [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Securities with a fair value significantly lower than cost, excluding hybrid securities	$ 0

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Reinsurance

6 Months Ended

Jun. 30, 2014

Reinsurance Disclosures [Abstract]

Reinsurance

Note 5― Reinsurance

The Company's insurance subsidiaries enter into agreements with other insurance companies to assume and cede reinsurance.  Reinsurance is ceded primarily to limit losses from large exposures and to permit recovery of a portion of direct or assumed losses. Reinsurance is also used in acquisition and disposition transactions when the underwriting company is not being acquired. Reinsurance does not relieve the originating insurer of liability.  The Company regularly evaluates the financial condition of its reinsurers and monitors its concentrations of credit risk.

Effective Exit of GMDB and GMIB Business

On February 4, 2013, the Company entered into an agreement with Berkshire Hathaway Life Insurance Company of Nebraska (“Berkshire”) to effectively exit the GMDB and GMIB business via a reinsurance transaction. Berkshire reinsured 100% of the Company's future claim payments in these businesses, net of retrocessional arrangements existing at that time. The reinsurance agreement is subject to an overall limit of approximately $3.8 billion.

This transaction resulted in an after-tax charge to shareholders' net income in the first quarter of 2013 of $507 million ($781 million pre-tax reported as follows: $727 million in other benefits expense; $45 million in GMIB fair value loss; and $9 million in other operating expenses). The payment to Berkshire under the agreement was $2.2 billion and was funded from the sale of investment assets, tax benefits related to the transaction and available parent cash.

Because this effective exit was accomplished via a reinsurance contract, the amounts related to the reinsured GMDB and GMIB contractscannot be netted, so the gross assets and liabilities must continue to be measured and reported. The following disclosures provide further context to the methods and assumptions used to determine these assets and liabilities.

GMDB

The Company estimates this liability with an internal model based on the Company's experience and future expectations over an extended period, consistent with the long-term nature of this product. Because the product is premium deficient, the Company records increases to the reserve if it is inadequate based on the model. Prior to the reinsurance transaction with Berkshire, any such reserve increases were recorded as a charge to shareholders' net income. Reserve increases after the reinsurance transaction are expected to have a corresponding increase in the recorded reinsurance recoverable, provided the increased recoverable remains within the overall Berkshire limit (including the GMIB assets).

The Company's dynamic hedge programs were discontinued during the first quarter of 2013 due to the Berkshire reinsurance transaction. These hedge programs generated losses (included in other revenues) of $32 million for the six months ended June 30, 2013.

Activity in the future policy benefit reserve for the GMDB business was as follows:

	For the period ended
	June 30,		December 31,
(In millions)	2014		2013
Balance at January 1	$	1,396	$	1,090
Add: Unpaid claims		18		24
Less: Reinsurance and other amounts recoverable		1,317		42
Balance at January 1, net		97		1,072
Add: Incurred benefits		2		699
Less: Paid benefits (including the $1,647 payment in 2013 for the Berkshire reinsurance transaction)		-		1,674
Ending balance, net		99		97
Less: Unpaid claims		19		18
Add: Reinsurance and other amounts recoverable		1,234		1,317
Ending balance	$	1,314	$	1,396

Benefits paid and incurred are net of ceded amounts. The ending net retained reserve is to cover ongoing administrative expenses, as well as claims retained by the Company.

The death benefit coverage in force for GMDB contracts assumed by the Companywas $2.8 billion as of June 30, 2014 and $3.0 billion as of December 31, 2013 assuming no reinsurance.  The death benefit coverage in force is the amount the Company would have to pay if all contractholders (approximately 373,000 as of June 30, 2014 and 390,000 as of December 31, 2013) died as of the specified date. Unless the Berkshire reinsurance limit is exceeded, the Company would be reimbursed in full for these payments. The aggregate value of the underlying mutual fund investments for these GMDB contracts was $13.8 billion as of June 30, 2014 and $14.1 billion as of December 31, 2013.

GMIB

As discussed further in Note 7, because GMIB contracts are without significant life insurance risk, they are not accounted for as insurance products. Instead, the Company reports GMIB liabilities and assets as derivatives at fair value. The GMIB assetsare classified in other assets, including other intangibles, and the GMIB liabilitiesare classified in accounts payable, accrued expenses and other liabilities in the Consolidated Balance Sheet. Disclosures related to fair value are included in Note 7 and derivatives are further described in Note 9.

GMIB assets included $401 million as of June 30, 2014 and $352 million as of December 31, 2013 from Berkshire, and were 100% secured by assets in a trust. GMIB assets also included $462 million as of June 30, 2014 and $399 million as of December 31, 2013 from two other retrocessionaires, and40% were secured by assets in a trust.

Effects of Reinsurance

In the Company's Consolidated Statements of Income, Premiums and fees were net of ceded premiums, and Total benefits and expenses were net of reinsurance recoveries, in the following amounts:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions)	2014		2013		2014		2013
Ceded premiums and fees
Individual life insurance and annuity business sold	$	44	$	45	$	89	$	91
Other		84		104		180		183
Total	$	128	$	149	$	269	$	274
Reinsurance recoveries
Individual life insurance and annuity business sold	$	69	$	94	$	168	$	182
Other		88		68		170		(194)
Total	$	157	$	162	$	338	$	(12)

As noted in the GMDB section above, recoveries for the six months ended June 30, 2013 are net of a decrease in reinsurance recoverables from a change in the growth rate assumption, due to discontinuing the hedge programs after the reinsurance transaction with Berkshire.

Reinsurance Recoverables

Components of the Company's reinsurance recoverablesare presented below:

(In millions)
	Line of Business	Reinsurer(s)	June 30, 2014		December 31, 2013		Collateral and Other Terms at June 30, 2014
	GMDB	Berkshire	$	1,195	$	1,276	100% secured by assets in a trust.
		Other		40		41	97% secured by assets in a trust or letter of credit.
	Individual Life and Annuity (sold)	Lincoln National Life and Lincoln Life &Annuity of New York		3,855		3,905	Both companies' ratings are sufficient to avoid triggering a contractual obligation to fully secure the outstanding balance.
	Retirement Benefits Business (sold)	Prudential Retirement Insurance and Annuity		1,148		1,200	100% secured by assets in a trust.
	Supplemental Benefits business	Great American Life		344		363	100% secured by assets in a trust.
	Global Health Care, Global Supplemental Benefits, Group Disability and Life	Various		444		407	Recoverables from more than 80 reinsurers used in the ordinary course of business. Balances range from less than $1 million up to $70 million, with 12% secured by assets in trusts or letters of credit.
	Other run-off reinsurance	Various		106		107	89% of this balance is secured by assets in a trust.
	Total reinsurance recoverables		$	7,132	$	7,299

Reserves for underlying reinsurance exposures assumed by the Company, as well as those for amounts recoverable from reinsurers and retrocessionaires for both ongoing operations and the run-off reinsurance operation, are considered appropriate as of June 30, 2014 based on current information.  The Company bears the risk of loss if its reinsurers and retrocessionaires do not meet or are unable to meet their reinsurance obligations to the Company.

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Organizational Efficiency Plans

6 Months Ended

Jun. 30, 2014

Organizational Efficiency Plan [Abstract]

Organizational Efficiency Plans

Note 6— Organizational Efficiency Plans

The Company is regularly evaluating ways to deliver its products and services more efficiently and at a lower cost. During 2013 and 2012, the Company adopted specific plans to increase its organizational efficiency as follows.

2013 Plan. During the fourth quarter of 2013, the Company committed to a plan to increase its organizational efficiency and reduce costs through a series of actions that includes employee headcount reductions. As a result, the Company recognized charges in other operating expenses of $60million pre-tax ($40million after-tax) in the fourth quarter of 2013, primarily for severance costs. The Company expects most of the severance to be paid by the end of 2015.

2012 Plan.During the third quarter of 2012, in connection with the execution of its strategy, the Company committed to a series of actions to further improve its organizational alignment, operational effectiveness, and efficiency.  As a result, the Company recognized charges in other operating expenses of $77 million pre-tax ($50 million after-tax) in the third quarter of 2012consisting primarily of severance costs. The costs associated with this plan were substantially paid as of March 31, 2014.

Summarized below is activity for these plans for 2013 and the first half of 2014.

(In millions)		Severance		Real estate		Total
Balance, January 1, 2013	$	67	$	4	$	71
Fourth quarter 2013 charge		47		13		60
Less: 2013 Payments		46		4		50
Balance, December 31, 2013		68		13		81
Less: First quarter 2014 payments		11		1		12
Less: Second quarter 2014 payments		7		1		8
Balance, June 30, 2014	$	50	$	11	$	61

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Investments

6 Months Ended

Jun. 30, 2014

Investments [Abstract]

Investments

Note 8 — Investments

Total Realized Investment Gains and Losses

The following total realized gains and losses on investments exclude amounts required to adjust future policy benefits for therun-off settlement annuity business:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions)	2014		2013		2014		2013
Fixed maturities	$	4	$	22	$	12	$	89
Equity securities		-		1		17		4
Commercial mortgage loans		(4)		(4)		(4)		(4)
Real estate		-		-		13		-
Other investments, including derivatives		65		7		69		76
Realized investment gains before income taxes		65		26		107		165
Less income taxes		22		9		37		55
Net realized investment gains	$	43	$	17	$	70	$	110

Included in the above realized investment gains (losses) before income taxes were asset write-downs as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions)	2014		2013		2014		2013
Credit-related (1)	$	(9)	$	(8)	$	(15)	$	(8)
Other		(1)		(8)		(1)		(8)
Total	$	(10)	$	(16)	$	(16)	$	(16)
(1) Credit-related losses include increases in valuation reserves on commercial mortgage loans and asset write-downs related to investments in real estate entities.

Fixed Maturities and Equity Securities

The amortized cost and fair value by contractual maturity periods for fixed maturities were as follows at June 30, 2014:

		Amortized		Fair
(In millions)		Cost		Value
Due in one year or less	$	1,161	$	1,180
Due after one year through five years		5,530		5,962
Due after five years through ten years		6,285		6,701
Due after ten years		2,785		3,535
Mortgage and other asset-backed securities		837		943
Total	$	16,598	$	18,321

Actual maturities of these securities could differ from their contractual maturitiesused in the table above. This could occur because issuers may have the right to call or prepay obligations, with or without penalties, or because in certain cases the Company may have the option to unilaterally extend the contractual maturity date.

Gross unrealized appreciation (depreciation) on fixed maturities by type of issuer is shown below.

				Gross		Gross
				Unrealized		Unrealized
		Amortized		Appre-		Depre-		Fair
		Cost		ciation		ciation		Value
(In millions)	June 30, 2014
Federal government and agency	$	914	$	338	$	-	$	1,252
State and local government		1,838		188		(3)		2,023
Foreign government		1,620		91		(5)		1,706
Corporate		11,389		1,020		(12)		12,397
Federal agency mortgage-backed		68		1		-		69
Other mortgage-backed		76		4		(2)		78
Other asset-backed		693		103		-		796
Total	$	16,598	$	1,745	$	(22)	$	18,321
(In millions)	December 31, 2013
Federal government and agency	$	640	$	242	$	(2)	$	880
State and local government		1,983		167		(6)		2,144
Foreign government		1,392		64		(12)		1,444
Corporate		10,306		749		(74)		10,981
Federal agency mortgage-backed		77		-		(1)		76
Other mortgage-backed		76		3		(2)		77
Other asset-backed		799		87		(2)		884
Total	$	15,273	$	1,312	$	(99)	$	16,486

The above table includes investments with a fair value of $2.9 billion supporting the Company's run-off settlement annuity business, with gross unrealized appreciation of $692 million and gross unrealized depreciation of $2 million at June 30, 2014. Such unrealized amounts are required to support the future policy benefit liabilities of this business and, as such, are not included in accumulated other comprehensive income. At December 31, 2013, investments supporting this business had a fair value of $2.6 billion, gross unrealized appreciation of $478 million and gross unrealized depreciation of $20 million.

Included in equity securities are hybrid investments consisting of preferred stock with call features. These securities are carried at fair value with changes in fair value reported in other realized investment gains (losses) and dividends reported in net investment income. As of June 30, 2014, fair values of these securities were $54 million, and amortized cost was $62 million. As of December 31, 2013, fair values of these securities were $56 million, and amortized cost was $68 million.

Sales information for available-for-sale fixed maturities and equity securities was as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions)	2014		2013		2014		2013
Proceeds from sales	$	316	$	311	$	510	$	1,272
Gross gains on sales	$	3	$	23	$	25	$	83
Gross losses on sales	$	1	$	1	$	1	$	3

Review of declines in fair value. Management reviews fixed maturities with a decline in fair value from cost for impairment based on criteria that include:

• length of time and severity of decline;

• financial health and specific near term prospects of the issuer;
• changes in the regulatory, economic or general market environment of the issuer's industry or geographic region; and
• the Company's intent to sell or the likelihood of a required sale prior torecovery.

As of June 30, 2014, fixed maturitieswith a decline in fair value from amortized cost (primarily corporate securities) were, by length of time of decline, as follows:

(Dollars in millions)	June 30, 2014
	Fair		Amortized		Unrealized		Number
(In millions)	Value		Cost		Depreciation		of Issues
Fixed maturities:
One year or less:
Investment grade	$	424	$	430	$	(6)	147
Below investment grade	$	235	$	238	$	(3)	126
More than one year:
Investment grade	$	401	$	411	$	(10)	159
Below investment grade	$	34	$	37	$	(3)	17

The unrealized depreciation of investment grade fixed maturities is due primarily to increases in market yields since purchase. Excluding hybrid investments, there were no equity securities with a fair value significantly lower than cost as of June 30, 2014.

Commercial Mortgage Loans

Mortgage loans held by the Company are made exclusively to commercial borrowers and are diversified by property type, location and borrower. Loans are generally issued at a fixed rate of interest and are secured by high quality, primarily completed and substantially leased operating properties.

Credit quality. The Company regularly evaluates and monitors credit risk, beginning with the initial underwriting of a mortgage loan and continuing throughout the investment holding period. Mortgage origination professionals employ an internal credit quality rating system designed to evaluate the relative risk of the transaction at each loan's originationthat is then updated each year as part of the annual portfolio loan review. The Company evaluates and monitors credit quality on an ongoing basis, classifying each loan as a loan in good standing, potential problem loan or problem loan.

Quality ratings are based on our evaluation of a number of key inputs related to the loan, including real estate market-related factors such as rental rates and vacancies, and property-specific inputs such as growth rate assumptions and lease rollover statistics. However, the two most significant contributors to the credit quality rating are the debt service coverage and loan-to-value ratios. The debt service coverage ratio measures the amount of property cash flow available to meet annual interest and principal payments on debt, with a ratio below 1.0 indicating that there is not enough cash flow to cover the required loan payments. The loan-to-value ratio, commonly expressed as a percentage, compares the amount of the loan to the fair value of the underlying property collateralizing the loan.

The following tables summarize the credit risk profile of the Company's commercial mortgage loan portfolio based on loan-to-value and debt service coverage ratios, as of June 30, 2014 and December 31, 2013:

(In millions)				June 30, 2014
		Debt Service Coverage Ratio
		1.30x or		1.20x to		1.10x to		1.00x to		Less than
Loan-to-Value Ratios		Greater		1.29x		1.19x		1.09x		1.00x		Total
Below 50%	$	340	$	-	$	-	$	6	$	-	$	346
50% to 59%		765		91		-		-		-		856
60% to 69%		327		-		15		-		61		403
70% to 79%		68		52		33		-		81		234
80% to 89%		6		97		-		-		58		161
90% to 100%		-		3		55		-		159		217
Total	$	1,506	$	243	$	103	$	6	$	359	$	2,217
(In millions)					December 31, 2013
		Debt Service Coverage Ratio
		1.30x or		1.20x to		1.10x to		1.00x to		Less than
Loan-to-Value Ratios		Greater		1.29x		1.19x		1.09x		1.00x		Total
Below 50%	$	314	$	-	$	-	$	6	$	-	$	320
50% to 59%		581		131		-		18		-		730
60% to 69%		438		16		29		-		24		507
70% to 79%		79		113		-		-		-		192
80% to 89%		65		42		34		28		143		312
90% to 100%		-		-		58		50		83		191
Total	$	1,477	$	302	$	121	$	102	$	250	$	2,252

The Company's annual in-depth review of its commercial mortgage loan investments is the primary mechanism for identifying emerging risks in the portfolio. The most recent review was completed by the Company's investment professionals in the second quarter of 2014 and included an analysis of each underlying property's most recent annual financial statements, rent rolls, operating plans, budgets, a physical inspection of the property and other pertinent factors. Based on historical results, current leases, lease expirations and rental conditions in each market, the Company estimates the current year and future stabilized property income and fair value, and categorizes the investments as loans in good standing, potential problem loans or problem loans. Based on property valuations and cash flows estimated as part of this review, the portfolio's average loan-to-value ratio improved slightly to 63% at June 30, 2014from 64%at December 31, 2013. The portfolio's average debt service coverage ratio was estimated to be 1.64 at June 30, 2014, a modest improvement from 1.62 at December 31, 2013.

The Company will reevaluate a loan's credit quality between annual reviews if new property information is received or an event such as delinquency or a borrower's request for restructure causes management to believe that the Company's estimate of financial performance, fair value or the risk profile of the underlying property has been impacted.

During 2013, the Company restructured its subordinate interest in two cross-collateralized pools of industrial loans totaling $31 million by extending the maturity dates and reducing the interest rates. This modification was considered a troubled debt restructuring and the loans were classified as problem mortgage loans because the borrower was experiencing financial difficulties and an interest rate concession was granted. No valuation reserves were required because the fair values of the underlying properties exceeded the carrying values of the outstanding loans.

Certain other loans were modified during the six months ended June 30, 2014 and the twelve months ended December 31, 2013. However, these were not considered troubled debt restructures and the impact of such modifications was not material to the Company's results of operations, financial condition or liquidity.

Potential problem mortgage loans are considered current (no payment more than 59 days past due), but exhibit certain characteristics that increase the likelihood of future default. The characteristics management considers include, but are not limited to, the deterioration of debt service coverage below 1.0, estimated loan-to-value ratios increasing to 100% or more, downgrade in quality rating and requests from the borrower for restructuring. In addition, loans are considered potential problems if principal or interest payments are past due by more than 30 but less than 60 days. Problem mortgage loans are either in default by 60 days or more or have been restructured as to terms, which could include concessions on interest rate, principal payment or maturity date. The Company monitors each problem and potential problem mortgage loan on an ongoing basis, and updates the loan categorization and quality rating when warranted.

Problem and potential problem mortgage loans, net of valuation reserves, totaled $209 million at June 30, 2014 and $158 million at December 31, 2013. At June 30, 2014 and December 31, 2013, industrial loans located in the South Atlantic region represented the most significant concentration of problem and potential problem mortgage loans.

Impaired commercial mortgage loans. A commercial mortgage loan is considered impaired when it is probable that the Company will not collect all amounts due (principal and interest) according to the terms of the original loan agreement. These loans are included in either problem or potential problem loans. The Company assesses each loan individually for impairment, using the information obtained from the quality review process discussed above. Impaired loans are carried at the lower of unpaid principal balance or the fair value of the underlying real estate. In some cases when it is probable that the Company will not collect the interest due under the original agreements, the loan will be considered impaired but a related valuation reserve will not be recorded because the fair value of the underlying real estate is higher than the remaining carrying value of the loan.

The carrying value of the Company's impaired commercial mortgage loans and related valuation reserves were as follows:

(In millions)		June 30, 2014					December 31, 2013
		Gross		Reserves		Net		Gross		Reserves		Net
Impaired commercial mortgage loans with valuation reserves	$	147	$	(12)	$	135	$	89	$	(8)	$	81
Impaired commercial mortgage loans with no valuation reserves		31		-		31		31		-		31
Total	$	178	$	(12)	$	166	$	120	$	(8)	$	112

The average recorded investment in impaired loans was $139 million during the six months endedJune 30, 2014 and $130 millionduring the six months endedJune 30, 2013. Because of the risk profile of the underlying investment, the Company recognizes interest income on problem mortgage loans only when payment is actually received. Interest income that would have been reflected in net income if interest on non-accrual commercial mortgage loans had been received in accordance with the original terms was not significant for the six months endedJune 30, 2014or 2013. Interest incomeon impaired commercial mortgage loans was not significant for the six months endedJune 30, 2014 or 2013.

The following table summarizes the changes in valuation reserves for commercial mortgage loans:

(In millions)	2014		2013
Reserve balance, January 1,	$	8	$	7
Increase in valuation reserves		4		4
Reserve balance, June 30,	$	12	$	11

Short-term investments and cash equivalents

Short-term investments and cash equivalents include corporate securities of $1.2 billion, federal government securities of $126 million and money market funds of $33 million as of June 30, 2014. The Company's short-term investments and cash equivalents as of December 31, 2013 included corporate securities of $2.2billion, federal government securities of $323 million and money market funds of $35 million.

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Investments - Valuation Reserves for Commercial Mortgage Loans (Details) (Mortgage Loans on Real Estate [Member], USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Mortgage Loans on Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Reserve balance, January 1,	$ 8	$ 7
Increase in valuation reserves	4	4
Reserve balance, June 30,	$ 12	$ 11

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Derivative Financial Instruments (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended				6 Months Ended
	Jun. 30, 2014		Jun. 30, 2013		Jun. 30, 2014		Jun. 30, 2013		Dec. 31, 2013
Derivatives, Fair Value [Line Items]
Maximum term length, investment cash flow hedges					7 years
Amounts excluded from assessment of hedge effectiveness	$ 0		$ 0		$ 0		$ 0
Gains (losses) recognized due to hedge ineffectiveness	0		0		0		0
Cash on deposit representing upfront margin required by clearinghouse	19				19
Fair Value Hedging [Member] | Interest Expense [Member] | Uncollateralized Debt [Member]
Derivatives, Fair Value [Line Items]
Gains (losses) recognized in interest expense	(7)				(6)
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]
Derivatives, Fair Value [Line Items]
Notional Amount	195				195				203
Gain (Loss) Recognized in Other Comprehensive Income	(1)		10		(1)		12
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Interest Rate Swaps [Member]
Derivatives, Fair Value [Line Items]
Notional Amount	44				44				45
Gain (Loss) Recognized in Other Comprehensive Income	0		0		(1)		(1)
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign Currency Swaps [Member]
Derivatives, Fair Value [Line Items]
Notional Amount	111				111				118
Gain (Loss) Recognized in Other Comprehensive Income	0	[1]	0	[1]	2	[1]	4	[1]
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Combination interest rate and foreign currency swaps [Member]
Derivatives, Fair Value [Line Items]
Notional Amount	40				40				40
Gain (Loss) Recognized in Other Comprehensive Income	(1)		10		(2)		9
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Long Term Investments Location [Member]
Derivatives, Fair Value [Line Items]
Fair Value	2	[2]			2	[2]			3	[2]
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Long Term Investments Location [Member] | Interest Rate Swaps [Member]
Derivatives, Fair Value [Line Items]
Fair Value	1	[2]			1	[2]			2	[2]
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Long Term Investments Location [Member] | Foreign Currency Swaps [Member]
Derivatives, Fair Value [Line Items]
Fair Value	1	[2]			1	[2]			1	[2]
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Long Term Investments Location [Member] | Combination interest rate and foreign currency swaps [Member]
Derivatives, Fair Value [Line Items]
Fair Value	0	[2]			0	[2]			0	[2]
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Accounts Payable Accrued Expenses And Other Liabilities [Member]
Derivatives, Fair Value [Line Items]
Fair Value	17	[2]			17	[2]			15	[2]
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Accounts Payable Accrued Expenses And Other Liabilities [Member] | Interest Rate Swaps [Member]
Derivatives, Fair Value [Line Items]
Fair Value	0	[2]			0	[2]			0	[2]
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Accounts Payable Accrued Expenses And Other Liabilities [Member] | Foreign Currency Swaps [Member]
Derivatives, Fair Value [Line Items]
Fair Value	12	[2]			12	[2]			13	[2]
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Accounts Payable Accrued Expenses And Other Liabilities [Member] | Combination interest rate and foreign currency swaps [Member]
Derivatives, Fair Value [Line Items]
Fair Value	5	[2]			5	[2]			2	[2]
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Interest Rate Swaps [Member]
Derivatives, Fair Value [Line Items]
Notional Amount	675				675
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Interest Rate Swaps [Member] | Interest Expense [Member]
Derivatives, Fair Value [Line Items]
Gains (losses) recognized in interest expense	$ 7				$ 6

[1] Other comprehensive income for foreign currency swaps excludes amounts required to adjust future policy benefits for the run-off settlement annuity business.

[2] There were no amounts offset in the Consolidated Balance Sheets at June 30, 2014 or December 31, 2013.

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Investments - Impaired Commercial Mortgage Loans (Details) (Mortgage Loans on Real Estate [Member], USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Mortgage Loans on Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Impaired commercial mortgage loans with related allowance, gross	$ 147		$ 89
Impaired commercial mortgage loans with no related allowance, gross	31		31
Impaired commercial mortgage loans, gross	178		120
Impaired commercial mortgage loans, reserves	(12)		(8)
Impaired commercial mortgage loans with related allowance, net	135		81
Impaired commercial mortgage loans, net	166		112
Average recorded investment in impaired mortgage loans	$ 139	$ 130

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Debt (Tables)

6 Months Ended

Jun. 30, 2014

Debt [Table] [Abstract]

Short-term and Long-term Debt

	June 30,		December 31,
(In millions)	2014		2013
Short-term:
Commercial paper	$	100	$	100
Current maturities of long-term debt		21		41
Other		-		92
Total short-term debt	$	121	$	233
Long-term:
Uncollateralized debt:
2.75% Notes due 2016	$	600	$	600
5.375% Notes due 2017		250		250
6.35% Notes due 2018		131		131
8.5% Notes due 2019		251		251
4.375% Notes due 2020 (1)		252		249
5.125% Notes due 2020 (1)		302		299
6.37% Notes due 2021		78		78
4.5% Notes due 2021 (1)		300		299
4% Notes due 2022		745		744
7.65% Notes due 2023		100		100
8.3% Notes due 2023		17		17
7.875% Debentures due 2027		300		300
8.3% Step Down Notes due 2033		83		83
6.15% Notes due 2036		500		500
5.875% Notes due 2041		298		298
5.375% Notes due 2042		750		750
Other		65		65
Total long-term debt	$	5,022	$	5,014

(1) In 2014, the Company entered into interest rate swap contracts hedging a portion of these fixed-rate debt instruments. See Note 9 for further information about the Company's interest rate risk management and these derivative instruments.

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Fair Value Measurements - Changes in Level 3 Net Derivative Assets (Liabilities) (Details) (Guaranteed Minimum Income Benefit [Member], USD $) In Millions, unless otherwise specified	3 Months Ended				6 Months Ended
	Jun. 30, 2014		Jun. 30, 2013		Jun. 30, 2014		Jun. 30, 2013
Guaranteed Minimum Income Benefit [Member]
Fair Value, Net Derivative Asset (Liability), Measured On Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Beginning balance	$ 21		$ 18		$ 10		$ (548)
Gains (losses) included in shareholders' net income:
GMIB fair value gain/(loss)	0		0		0		0
Other	1		1		12		2
Total gains (losses) included in shareholders' net income	1		1		12		2
Gains (losses) included in other comprehensive income	0		0		0		0
Gains (losses) required to adjust future policy benefits for settlement annuities	0	[1]	0	[1]	0	[1]	0	[1]
Purchases, issuances, settlements:
Purchases	0		0		0		0
Sales	0		0		0		0
Settlements	2		4		2		569
Total purchases, sales, settlements	2		4		2		569
Transfers into/(out of) Level 3:
Transfers into Level 3	0		0		0		0
Transfers out of Level 3	0		0		0		0
Transfers into/out of Level 3	0		0		0		0
Ending balance	24		23		24		23
Total gains (losses) included in income attributable to instruments held at the reporting date	$ 1		$ 1		$ 12		$ 2

[1] Amounts do not accrue to shareholders.

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Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2014

Accumulated Other Comprehensive Income (Loss) [Abstract]

Accumulated Other Comprehensive Income (Loss)

Note 13—Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss excludes amounts required to adjust future policy benefits for the run-off settlement annuity business and a portion of deferred acquisition costs associated with the corporate owned life insurance business. As required by GAAP, the Company parenthetically identifies the income statement line item affected by reclassification adjustments in the table below. Changes in the components of accumulated other comprehensive loss were as follows:

			Tax
			(Expense)		After-
(In millions)	Pre-Tax		Benefit		Tax
Three Months Ended June 30, 2014
Net unrealized appreciation, securities:
Net unrealized appreciation on securities arising during the period	$	157	$	(51)	$	106
Reclassification adjustment for (gains) included in shareholders' net income (realized investment gains)		(4)		1		(3)
Net unrealized appreciation, securities	$	153	$	(50)	$	103
Net unrealized appreciation, derivatives	$	-	$	-	$	-
Net translation of foreign currencies	$	51	$	(5)	$	46
Postretirement benefits liability adjustment:
Reclassification adjustment for amortization of net losses from past
experience and prior service costs (other operating expenses)	$	15	$	(5)	$	10
Net change due to valuation update		2		(1)		1
Net postretirement benefits liability adjustment	$	17	$	(6)	$	11
Three Months Ended June 30, 2013
Net unrealized depreciation, securities:
Net unrealized depreciation on securities arising during the period	$	(384)	$	130	$	(254)
Reclassification adjustment for (gains) included in shareholders' net income (realized investment gains)		(23)		8		(15)
Net unrealized depreciation, securities	$	(407)	$	138	$	(269)
Net unrealized appreciation, derivatives	$	10	$	(4)	$	6
Net translation of foreign currencies	$	(23)	$	7	$	(16)
Postretirement benefits liability adjustment:
Reclassification adjustment for amortization of net losses from past
experience and prior service costs (other operating expenses)	$	17	$	(6)	$	11
Net change due to valuation update		16		(6)		10
Net postretirement benefits liability adjustment	$	33	$	(12)	$	21

			Tax
			(Expense)		After-
(In millions)	Pre-Tax		Benefit		Tax
Six Months Ended June 30, 2014
Net unrealized appreciation, securities:
Net unrealized appreciation on securities arising during the period	$	313	$	(105)	$	208
Reclassification adjustment for (gains) included in shareholders' net income (realized investment gains)		(29)		10		(19)
Net unrealized appreciation, securities	$	284	$	(95)	$	189
Net unrealized appreciation, derivatives	$	-	$	-	$	-
Net translation of foreign currencies	$	38	$	(3)	$	35
Postretirement benefits liability adjustment:
Reclassification adjustment for amortization of net losses from past
experience and prior service costs (other operating expenses)	$	28	$	(10)	$	18
Reclassification adjustment for settlement (other operating expenses)		6		(2)		4
Total reclassification adjustments to shareholders' net income (other operating expenses)		34		(12)		22
Net change due to valuation update		2		(1)		1
Net postretirement benefits liability adjustment	$	36	$	(13)	$	23
Six Months Ended June 30, 2013
Net unrealized depreciation, securities:
Net unrealized depreciation on securities arising during the period	$	(420)	$	142	$	(278)
Reclassification adjustment for (gains) included in shareholders' net income (realized investment gains)		(93)		32		(61)
Net unrealized depreciation, securities	$	(513)	$	174	$	(339)
Net unrealized appreciation, derivatives	$	14	$	(5)	$	9
Net translation of foreign currencies	$	(92)	$	18	$	(74)
Postretirement benefits liability adjustment:
Reclassification adjustment for amortization of net losses from past
experience and prior service costs (other operating expenses)	$	34	$	(12)	$	22
Reclassification adjustment for curtailment (other operating expenses)		(19)		7		(12)
Total reclassification adjustments to shareholders' net income (other operating expenses)		15		(5)		10
Net change due to valuation update and plan amendments		79		(28)		51
Net postretirement benefits liability adjustment	$	94	$	(33)	$	61

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2014

Earnings Per Share [Abstract]

Earnings Per Share Table

			Effect of
(Dollars in millions, except per share amounts)	Basic		Dilution		Diluted
Three Months Ended June 30,
2014
Shareholders' net income	$	573			$	573
Shares (in thousands):
Weighted average		265,377				265,377
Common stock equivalents				4,544		4,544
Total shares		265,377		4,544		269,921
EPS	$	2.16	$	(0.04)	$	2.12
2013
Shareholders' net income	$	505			$	505
Shares (in thousands):
Weighted average		282,043				282,043
Common stock equivalents				5,043		5,043
Total shares		282,043		5,043		287,086
EPS	$	1.79	$	(0.03)	$	1.76

			Effect of
(Dollars in millions, except per share amounts)	Basic		Dilution		Diluted
Six Months Ended June 30,
2014
Shareholders' net income	$	1,101			$	1,101
Shares (in thousands):
Weighted average		267,665				267,665
Common stock equivalents				4,516		4,516
Total shares		267,665		4,516		272,181
EPS	$	4.11	$	(0.06)	$	4.05
2013
Shareholders' net income	$	562			$	562
Shares (in thousands):
Weighted average		282,919				282,919
Common stock equivalents				5,248		5,248
Total shares		282,919		5,248		288,167
EPS	$	1.99	$	(0.04)	$	1.95

Antidilutive Options Table

	Three Months Ended		Six Months Ended
	June 30,		June 30,
(In millions)	2014	2013	2014	2013
Antidilutive options	2.0	1.8	2.0	1.8

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Fair Value Measurements - Changes in Level 3 Financial Assets (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended				6 Months Ended
	Jun. 30, 2014		Jun. 30, 2013		Jun. 30, 2014		Jun. 30, 2013
Fixed Maturities And Equity Securities [Member]
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning balance	$ 1,198		$ 1,288		$ 1,190		$ 1,351
Gains (losses) included in shareholders' net income:
GMIB fair value gain/(loss)	0		0		0		0
Other	2		4		14		10
Total gains (losses) included in shareholders' net income	2		4		14		10
Gains (losses) included in other comprehensive income	9		(16)		17		(17)
Gains (losses) required to adjust future policy benefits for settlement annuities	20	[1]	(33)	[1]	42	[1]	(38)	[1]
Purchases, issuances, settlements:
Purchases	53		35		77		40
Sales	(91)		(18)		(115)		(30)
Settlements	(46)		(10)		(107)		(61)
Total purchases, sales, settlements	(84)		7		(145)		(51)
Transfers into/(out of) Level 3:
Transfers into Level 3	30		15		154		69
Transfers out of Level 3	(53)		(56)		(150)		(115)
Total transfers into/(out of) Level 3	(23)		(41)		4		(46)
Ending balance	1,122		1,209		1,122		1,209
Total gains (losses) included in income attributable to instruments held at the reporting date	1		2		2		4
Derivative Financial Instruments, Assets [Member] | Guaranteed Minimum Income Benefit [Member]
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning balance	815		1,117		751		622
Gains (losses) included in shareholders' net income:
GMIB fair value gain/(loss)	53		(156)		130		(205)
Other	3		1		2		2
Total gains (losses) included in shareholders' net income	56		(155)		132		(203)
Gains (losses) included in other comprehensive income	0		0		0		0
Gains (losses) required to adjust future policy benefits for settlement annuities	0	[1]	0	[1]	0	[1]	0	[1]
Purchases, issuances, settlements:
Purchases	0		0		0		0
Sales	0		0		0		0
Settlements	(8)		(17)		(20)		526
Total purchases, sales, settlements	(8)		(17)		(20)		526
Transfers into/(out of) Level 3:
Transfers into Level 3	0		0		0		0
Transfers out of Level 3	0		0		0		0
Total transfers into/(out of) Level 3	0		0		0		0
Ending balance	863		945		863		945
Total gains (losses) included in income attributable to instruments held at the reporting date	$ 56		$ (155)		$ 132		$ (203)

[1] Amounts do not accrue to shareholders.

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Reinsurance - Guaranteed Minimum Death Benefit Contracts, Future Policy Benefits (Details) (Variable Annuity [Member], Guaranteed Minimum Death Benefit [Member], USD $) In Millions, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Variable Annuity [Member] | Guaranteed Minimum Death Benefit [Member]
Activity in future policy benefits reserves for GMDB business [Line Items]
Future Policy Benefit Reserve, beginning balance, gross	$ 1,396	$ 1,090
Claims payable, beginning balance, gross	18	24
Less: Reinsurance and other amounts recoverable	1,317	42
Balance at January 1, net	97	1,072
Add: Incurred benefits	2	699
Less: Paid benefits	0	1,674
Ending balance, net	99	97
Claims payable, ending balance, gross	19	18
Add: Reinsurance and other amounts recoverable	1,234	1,317
Future Policy Benefit Reserve, ending balance, gross	$ 1,314	$ 1,396

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Consolidated Balance Sheets (USD $) In Millions, except Per Share data, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Investments [Abstract]
Fixed maturities, at fair value (amortized cost, $16,598; $15,273)	$ 18,321	$ 16,486
Equity securities, at fair value (cost, $136; $146)	131	141
Commercial Mortgage Loans	2,217	2,252
Policy loans	1,453	1,485
Real estate	62	97
Other long-term investments	1,336	1,273
Short-term investments	232	631
Total investments	23,752	22,365
Cash and cash equivalents	1,967	2,795
Accrued investment income	245	247
Premiums, accounts and notes receivable, net	2,657	1,991
Reinsurance recoverables	7,132	7,299
Deferred policy acquisition costs	1,510	1,395
Property and equipment	1,498	1,464
Deferred tax assets, net		92
Goodwill	6,033	6,029
Other assets, including other intangibles	2,492	2,407
Separate account assets	8,643	8,252
Total assets	55,929	54,336
Liabilities:
Contractholder deposit funds	8,459	8,470
Future policy benefits	9,583	9,306
Unpaid claims and claim expenses	4,389	4,298
Global Health Care medical claims payable	2,276	2,050
Unearned premiums and fees	625	580
Total insurance and contractholder liabilities	25,332	24,704
Accounts payable, accrued expenses and other liabilities	5,726	5,456
Short-term debt	121	233
Long-term debt	5,022	5,014
Deferred tax liabilities, net	34	0
Separate account liabilities	8,643	8,252
Total liabilities	44,878	43,659
Contingencies - Note 16
Redeemable noncontrolling interest	99	96
Shareholders' Equity
Common stock (par value per share, $0.25; shares issued,366; authorized, 600)	92	92
Additional paid-in capital	3,405	3,356
Net unrealized appreciation, fixed maturities	663	473
Net unrealized appreciation, equity securities	3	4
Net unrealized depreciation, derivatives	(19)	(19)
Net translation of foreign currencies	117	82
Postretirement benefits liability adjustment	(1,037)	(1,060)
Accumulated other comprehensive loss	(273)	(520)
Retained earnings	14,677	13,676
Less treasury stock, at cost	(6,964)	(6,037)
Total shareholders' equity	10,937	10,567
Noncontrolling interest	15	14
Total equity	10,952	10,581
Total liabilities and equity	$ 55,929	$ 54,336
Shareholders' Equity Per Share	$ 41.32	$ 38.35

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Recent Accounting Pronouncements

6 Months Ended

Jun. 30, 2014

New Accounting Pronouncements And Changes In Accounting Principles [Abstract]

Recent Accounting Pronouncements

Note 2 — Recent Accounting Changes

Accounting for Health Care Reform's Risk Mitigation Programs. Beginning in 2014,asprescribed by the Patient Protection and Affordable Care Act (referred to as “Health Care Reform”), three programs went into effect to reduce the risk for participating health insurance companies selling coverage on the public exchanges.

• A three-year (2014-2016) reinsurance programis designed to provide reimbursement to insurers for high cost individual business sold on or off the public exchanges. The reinsurance entity established by the U.S. Department of Health and Human Services (“HHS”) is funded by a per-customer reinsurance fee assessed on all commercial medical plans, including self-insured group health plans. Only non-grandfathered individual plans are eligible for recoveries if claims exceed a specified threshold, up to a reinsurance cap. Reinsurance contributions associated with non-grandfathered individual plans are reported as a reduction in premium revenue, and estimated reinsurance recoveries are established with an offsetting reduction in Global Health Care medical claims expense. Reinsurance fee contributions for other insured business are reported in other operating expenses. The Company currently does not administer reinsurance fee contributions on behalf of its self-insured employer clients.
• A permanent risk adjustment program reallocates funds from insurers with lower risk populations to insurers with higher risk populations based on the relative risk scores of participantsin non-grandfathered plans in the individual and small group markets, both on and off the exchanges. Based on the risk of our members compared to the risk of other members in the same state and market, considering data obtained from industry studies, we estimate our year-to-date risk adjustment. The Company records a risk adjustment receivable or payable, with an offsetting adjustment to premium revenue when the amounts are reasonably estimable and collection is reasonably assured.
• A three year (2014-2016) risk corridor program isdesigned to limit insurer gains and losses by comparing allowable medical costs to a target amount as defined by HHS. This program applies to individual and small group qualified health plans, operating on and off the exchanges. Variances from the target amount exceeding certain thresholds may result in amounts due to or due from HHS. The Company records a risk corridor receivable or payable as an adjustment to premium revenue based on our year-to-date experience when the amounts are reasonably estimable and collection is reasonably assured.

Revenue from Contracts with Customers (Accounting Standards Update (“ASU”) 2014-09). In May 2014, the Financial Accounting Standards Board (“FASB”) issued new revenue recognition guidance that will apply to various contracts with customers to provide goods or services, including the Company's non-insurance, administrative services contracts. It will not apply to certain contracts within the scope of other GAAP, such as insurance contracts. This new guidance introduces a model that requires companies to estimate and allocate the expected contract revenue among distinct goods or services in the contract based on relative standalone selling prices. Revenue is recognized as goods or services are delivered. This new method replaces the current GAAP approach of recognizing revenue that is fixed and determinable primarily based on contract terms. In addition, extensive new disclosures will be required including the presentation of additional categories of revenues and information about related contract assets and liabilities. This new guidance must be implemented on January 1, 2017; early adoption is not permitted. The Company may choose to adopt these changes through retrospective restatement with or without using certain practical expedients or with a cumulative effect adjustment on adoption. The Company is currently evaluating these new requirements for its noninsurance customer contracts to determine the method of implementation and any resulting estimated effects on the financial statements.

Fees Paid to the Federal Government by Health Insurers (ASU 2011-06). Effective January 1, 2014, the Company adopted the FASB's accounting guidance for the health insurance industry assessment (the “fee”) mandated by Health Care Reform. This non-deductible fee is being levied based on a ratio of an insurer's net health insurance premiums written for the previous calendar year compared to the U.S. health insurance industry total. Based on a preliminary assessment from the Internal Revenue Service for the 2014 fee, the Company adjusted its liability reported in accounts payable, accrued expenses and other liabilities to $245 million during the second quarter of 2014. The corresponding deferred cost, recorded in other assets, including other intangibles was also adjusted. Through June 30, 2014, $122 million of the deferred cost was recognized in other operating expenses; the remainder will be recognized on a straight-line basis over the balance of 2014. The Company expects to be notified of and pay the final 2014 assessment in the third quarter.

Investment Company Accounting (ASU 2013-08).Effective January 1, 2014, the Company adopted FASB's amended accounting guidance to change the criteria for reporting as an investment company, clarify the fair value measurement used by an investment company and require additional disclosures. This guidance also confirms that parent company accounting for an investment company should reflect fair value accounting. While this guidance applies to certain of the Company's security and real estate partnership investments, its adoption did not have a material impact on the Company's financial statements.

Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“AOCI”) (ASU 2013-02). Effective January 1, 2013, the Company adopted new requirements to disclose the effect of items reclassified out of AOCI into net income for each individual line item impacted in the statement of income. See Note 13 for the Company's disclosures.

Disclosures about Offsetting Assets and Liabilities (ASU 2011-11). The FASB's new requirements to disclose information related to certain investments on both a gross and net basis became effective January 1, 2013. The Company had no transactions or arrangements subject to these new disclosure requirements.

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Investments - Hybrid Securities (Details) (Equity securities [Member], USD $) In Millions, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Equity securities [Member]
Investment [Line Items]
Hybrid securities	$ 54	$ 56
Hybrid instruments, cost	$ 62	$ 68

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Debt - Short-term and Long-term Debt (Details) (USD $) In Millions, unless otherwise specified	Jun. 30, 2014		Dec. 31, 2013
Debt Disclosure [Abstract]
Commercial paper	$ 100		$ 100
Current maturities of long-term debt	21		41
Other	0		92
Total short-term debt	121		233
Debt Instrument [Line Items]
Long-term debt	5,022		5,014
Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt	5,022		5,014
Notes due 2016 2.75% Interest [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt	600		600
Stated interest rate	2.75%		2.75%
Notes due 2017 5.375% Interest [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt	250		250
Stated interest rate	5.375%		5.375%
Notes due 2018 6.35% Interest [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt	131		131
Stated interest rate	6.35%		6.35%
Notes due 2019 8.5% Interest [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt	251		251
Stated interest rate	8.50%		8.50%
Notes due 2020 4.375% Interest [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt	252	[1]	249	[1]
Stated interest rate	4.375%		4.375%
Notes due 2020 5.125% Interest [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt	302	[1]	299	[1]
Stated interest rate	5.125%		5.125%
Notes due 2021 6.37% Interest [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt	78		78
Stated interest rate	6.37%		6.37%
Notes Due 2021 4.5% Interest [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt	300	[1]	299	[1]
Stated interest rate	4.50%		4.50%
Notes due 2022 4% Interest [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt	745		744
Stated interest rate	4.00%		4.00%
Notes due 2023 7.65% Interest [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt	100		100
Stated interest rate	7.65%		7.65%
Notes due 2023 8.3% Interest [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt	17		17
Stated interest rate	8.30%		8.30%
Debentures due 2027 7.875% Interest [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt	300		300
Stated interest rate	7.875%		7.875%
Step Down Notes Due 2033 8.3% Interest [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt	83		83
Stated interest rate	8.30%		8.30%
Notes due 2036 6.15% Interest [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt	500		500
Stated interest rate	6.15%		6.15%
Notes Due 2041 5.875% Interest [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt	298		298
Stated interest rate	5.875%		5.875%
Notes due 2042 5.375% Interest [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt	750		750
Stated interest rate	5.375%		5.375%
Other Long Term Debt [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt	$ 65		$ 65

[1] In 2014, the Company entered into interest rate swap contracts hedging a portion of these fixed-rate debt instruments. See Note 9 for further information about the Company’s interest rate risk management and these derivative instruments.

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Global Health Care Medical Claims Payable (Tables)

6 Months Ended

Jun. 30, 2014

Global Health Care Medical Claims Payable [Abstract]

Schedule of medical claims payable balance

	June 30,		December 31,
(In millions)	2014		2013
Incurred but not yet reported	$	1,842	$	1,615
Reported claims in process		310		355
Physician incentives and other medical expense payable		124		80
Medical claims payable	$	2,276	$	2,050

Schedule of medical claims payable activity

	For the period ended
	June 30,		December 31,
(In millions)	2014		2013
Balance at January 1,	$	2,050	$	1,856
Less: Reinsurance and other amounts recoverable		194		242
Balance at January 1, net		1,856		1,614
Incurred claims related to:
Current year		8,390		16,049
Prior years		(140)		(182)
Total incurred		8,250		15,867
Paid claims related to:
Current year		6,606		14,267
Prior years		1,469		1,358
Total paid		8,075		15,625
Ending Balance, net		2,031		1,856
Add: Reinsurance and other amounts recoverable		245		194
Ending Balance	$	2,276	$	2,050

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Segment Information (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Segment Reporting Information [Line Items]
Premiums and fees, mail order pharmacy revenues and Other revenues	$ 8,374	$ 7,665	$ 16,551	$ 15,422
Segment earnings (loss)	530	488	1,031	452
Realized investment gains, net of taxes	43	17	70	110
Shareholders' Net Income	573	505	1,101	562
Operating Segments [Member] | Global Health Benefits Segment [Member]
Segment Reporting Information [Line Items]
Premiums and fees, mail order pharmacy revenues and Other revenues	6,726	6,171	13,272	12,468
Segment earnings (loss)	402	379	841	806
Operating Segments [Member] | Global Supplemental Benefits Segment [Member]
Segment Reporting Information [Line Items]
Premiums and fees, mail order pharmacy revenues and Other revenues	729	622	1,419	1,234
Segment earnings (loss)	61	49	114	104
Operating Segments [Member] | Group Disability And Life Segment [Member]
Segment Reporting Information [Line Items]
Premiums and fees, mail order pharmacy revenues and Other revenues	891	847	1,806	1,705
Segment earnings (loss)	110	104	177	102
Operating Segments [Member] | Other Operations Segment [Member]
Segment Reporting Information [Line Items]
Premiums and fees, mail order pharmacy revenues and Other revenues	30	30	60	23
Segment earnings (loss)	13	15	30	(447)
Corporate [Member]
Segment Reporting Information [Line Items]
Premiums and fees, mail order pharmacy revenues and Other revenues	(2)	(5)	(6)	(8)
Segment earnings (loss)	$ (56)	$ (59)	$ (131)	$ (113)

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Earnings Per Share (Details) (USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Earnings Per Share [Abstract]
Shareholders' net income	$ 573	$ 505	$ 1,101	$ 562
Shares:
Weighted average shares, Basic	265,377,000	282,043,000	267,665,000	282,919,000
Common stock equivalents	4,544,000	5,043,000	4,516,000	5,248,000
Total shares, Diluted	269,921,000	287,086,000	272,181,000	288,167,000
EPS, basic	$ 2.16	$ 1.79	$ 4.11	$ 1.99
EPS, effect of dilution	$ (0.04)	$ (0.03)	$ (0.06)	$ (0.04)
EPS, diluted	$ 2.12	$ 1.76	$ 4.05	$ 1.95
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Common shares held in Treasury	101,424,330	82,496,367	101,424,330	82,496,367
Stock Options [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive options	2,000,000	1,800,000	2,000,000	1,800,000

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Debt

6 Months Ended

Jun. 30, 2014

Debt Disclosure [Abstract]

Debt

Note 12― Debt

Short-term and long-term debt were as follows:

	June 30,		December 31,
(In millions)	2014		2013
Short-term:
Commercial paper	$	100	$	100
Current maturities of long-term debt		21		41
Other		-		92
Total short-term debt	$	121	$	233
Long-term:
Uncollateralized debt:
2.75% Notes due 2016	$	600	$	600
5.375% Notes due 2017		250		250
6.35% Notes due 2018		131		131
8.5% Notes due 2019		251		251
4.375% Notes due 2020 (1)		252		249
5.125% Notes due 2020 (1)		302		299
6.37% Notes due 2021		78		78
4.5% Notes due 2021 (1)		300		299
4% Notes due 2022		745		744
7.65% Notes due 2023		100		100
8.3% Notes due 2023		17		17
7.875% Debentures due 2027		300		300
8.3% Step Down Notes due 2033		83		83
6.15% Notes due 2036		500		500
5.875% Notes due 2041		298		298
5.375% Notes due 2042		750		750
Other		65		65
Total long-term debt	$	5,022	$	5,014

(1) In 2014, the Company entered into interest rate swap contracts hedging a portion of these fixed-rate debt instruments. See Note 9 for further information about the Company's interest rate risk management and these derivative instruments.

The Company has a five-year revolving credit and letter of credit agreement for $1.5 billion that permits up to $500 million to be used for letters of credit. This agreement extends through December 2017 and is diversified among 16 banks, with three banks each having 12% of the commitment and the remainder spread among 13 banks. The credit agreement includes options that are subject to consent by the administrative agent and the committing banks, to increase the commitment amount to $2 billion and to extend the term past December 2017. The credit agreement is available for general corporate purposes, including as a commercial paper backstop and for the issuance of letters of credit. This agreement has certain covenants, including a financial covenant requiring the Company to maintain a total debt-to-adjusted capital ratio at or below 0.50 to 1.00. As of June 30, 2014, the Company had $6.2billion of borrowing capacity within the maximum debt coverage covenant in the agreement in addition to the $5.1 billion of debt outstanding. Letters of credit outstanding as of June 30, 2014totaled $23 million.

The Company was in compliance with its debt covenants as of June 30, 2014.