Investments (Tables)

9 Months Ended

Sep. 30, 2014

Investment [Line Items]

Realized Investment Gains and Losses

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions)	2014		2013		2014		2013
Fixed maturities	$	2	$	16	$	14	$	105
Equity securities		(3)		-		14		4
Commercial mortgage loans		(2)		-		(6)		(4)
Real estate		-		-		13		-
Other investments, including derivatives		26		11		95		87
Realized investment gains before income taxes		23		27		130		192
Less income taxes		8		10		45		65
Net realized investment gains	$	15	$	17	$	85	$	127

Asset write-downs and changes in valuation reserves

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions)	2014		2013		2014		2013
Credit-related (1)	$	(1)	$	-	$	(16)	$	(8)
Other		(9)		(3)		(10)		(11)
Total	$	(10)	$	(3)	$	(26)	$	(19)
(1) Credit-related losses include other-than-temporary declines in fair value of equity securities and 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	$	1,181	$	1,201
Due after one year through five years		5,483		5,887
Due after five years through ten years		6,669		7,020
Due after ten years		3,134		3,888
Mortgage and other asset-backed securities		704		801
Total	$	17,171	$	18,797

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

				Gross		Gross
				Unrealized		Unrealized
		Amortized		Appre-		Depre-		Fair
		Cost		ciation		ciation		Value
(In millions)	September 30, 2014
Federal government and agency	$	911	$	331	$	-	$	1,242
State and local government		1,768		182		(2)		1,948
Foreign government		1,759		106		(8)		1,857
Corporate		12,029		945		(25)		12,949
Federal agency mortgage-backed		12		-		-		12
Other mortgage-backed		72		3		(1)		74
Other asset-backed		620		95		-		715
Total	$	17,171	$	1,662	$	(36)	$	18,797
(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				Nine Months Ended
	September 30,				September 30,
(In millions)	2014		2013		2014		2013
Proceeds from sales	$	344	$	402	$	854	$	1,674
Gross gains on sales	$	13	$	10	$	38	$	93
Gross losses on sales	$	4	$	1	$	5	$	4

Fixed maturities with a decline in fair value from amortized cost

	September 30, 2014
	Fair		Amortized		Unrealized		Number
(Dollars in millions)	Value		Cost		Depreciation		of Issues
Fixed maturities:
One year or less:
Investment grade	$	1,307	$	1,321	$	(14)	276
Below investment grade	$	319	$	325	$	(6)	301
More than one year:
Investment grade	$	285	$	296	$	(11)	123
Below investment grade	$	63	$	68	$	(5)	21

Credit risk profile of commercial mortgage loans

(In millions)				September 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%	$	364	$	-	$	-	$	6	$	-	$	370
50% to 59%		686		55		-		-		-		741
60% to 69%		340		-		15		-		61		416
70% to 79%		68		36		33		-		80		217
80% to 89%		7		41		-		-		58		106
90% to 100%		-		-		54		-		154		208
Total	$	1,465	$	132	$	102	$	6	$	353	$	2,058
(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)		September 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, September 30,	$	12	$	11