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