Fair Value Measurements (Tables)

3 Months Ended

6 Months Ended

12 Months Ended

Jun. 30, 2011

Dec. 31, 2010

Fair Value Measurements Tables [Abstract]

Financial assets and liabilities carried at fair value

June 30, 2011
(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	$	207	$	556	$	4	$	767
State and local government		-		2,450		-		2,450
Foreign government		-		1,239		17		1,256
Corporate		-		9,726		369		10,095
Federal agency mortgage-backed		-		10		-		10
Other mortgage-backed		-		70		1		71
Other asset-backed		-		335		521		856
Total fixed maturities⁽¹⁾		207		14,386		912		15,505
Equity securities		8		103		38		149
Subtotal		215		14,489		950		15,654
Short-term investments		-		204		-		204
GMIB assets⁽²⁾		-		-		490		490
Other derivative assets⁽³⁾		-		22		-		22
Total financial assets at fair value, excluding separate accounts	$	215	$	14,715	$	1,440	$	16,370
Financial liabilities at fair value:
GMIB liabilities	$	-	$	-	$	917	$	917
Other derivative liabilities⁽³⁾		-		43		-		43
Total financial liabilities at fair value	$	-	$	43	$	917	$	960

June 30, 2011
(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	$	207	$	556	$	4	$	767
State and local government		-		2,450		-		2,450
Foreign government		-		1,239		17		1,256
Corporate		-		9,726		369		10,095
Federal agency mortgage-backed		-		10		-		10
Other mortgage-backed		-		70		1		71
Other asset-backed		-		335		521		856
Total fixed maturities⁽¹⁾		207		14,386		912		15,505
Equity securities		8		103		38		149
Subtotal		215		14,489		950		15,654
Short-term investments		-		204		-		204
GMIB assets⁽²⁾		-		-		490		490
Other derivative assets⁽³⁾		-		22		-		22
Total financial assets at fair value, excluding separate accounts	$	215	$	14,715	$	1,440	$	16,370
Financial liabilities at fair value:
GMIB liabilities	$	-	$	-	$	917	$	917
Other derivative liabilities⁽³⁾		-		43		-		43
Total financial liabilities at fair value	$	-	$	43	$	917	$	960

December 31, 2010
(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	$	133	$	550	$	4	$	687
State and local government		-		2,467		-		2,467
Foreign government		-		1,137		17		1,154
Corporate		-		9,080		364		9,444
Federal agency mortgage-backed		-		10		-		10
Other mortgage-backed		-		85		3		88
Other asset-backed		-		348		511		859
Total fixed maturities⁽¹⁾		133		13,677		899		14,709
Equity securities		6		87		34		127
Subtotal		139		13,764		933		14,836
Short-term investments		-		174		-		174
GMIB assets⁽²⁾		-		-		480		480
Other derivative assets⁽³⁾		-		19		-		19
Total financial assets at fair value, excluding separate accounts	$	139	$	13,957	$	1,413	$	15,509
Financial liabilities at fair value:
GMIB liabilities	$	-	$	-	$	903	$	903
Other derivative liabilities⁽³⁾		-		32		-		32
Total financial liabilities at fair value	$	-	$	32	$	903	$	935

Level 3 financial assets and financial liabilities

	June 30,		December 31,
(In millions)	2011		2010
Other asset and mortgage-backed securities - valued using pricing models	$	522	$	514
Corporate and government bonds - valued using pricing models		328		312
Corporate bonds - valued at transaction price		62		73
Equity securities - valued at transaction price		38		34
Total	$	950	$	933

	June 30,		December 31,
(In millions)	2011		2010
Other asset and mortgage-backed securities - valued using pricing models	$	522	$	514
Corporate and government bonds - valued using pricing models		328		312
Corporate bonds - valued at transaction price		62		73
Equity securities - valued at transaction price		38		34
Total	$	950	$	933

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

For the Three Months Ended June 30, 2011
	Fixed Maturities & Equity Securities		GMIB Assets		GMIB Liabilities		GMIB Net
(In millions)	Fixed Maturities & Equity Securities		GMIB Assets		GMIB Liabilities		GMIB Net
Balance at April 1, 2011	$	928	$	459	$	(850)	$	(391)
Gains (losses) included in shareholders' net income:
GMIB fair value gain/(loss)		-		48		(85)		(37)
Other		2		-		-		-
Total gains (losses) included in shareholders' net income		2		48		(85)		(37)
Gains included in other comprehensive income		6		-		-		-
Gains required to adjust future policy benefits for settlement annuities⁽¹⁾		11		-		-		-
Purchases, sales and settlements:
Purchases		42		-		-		-
Settlements		(19)		(17)		18		1
Total purchases, sales and settlements		23		(17)		18		1
Transfers into/(out of) Level 3:
Transfers into Level 3		19		-		-		-
Transfers out of Level 3		(39)		-		-		-
Total transfers into/(out of) Level 3		(20)		-		-		-
Balance at June 30, 2011	$	950	$	490	$	(917)	$	(427)
Total gains (losses) included in income attributable to
instruments held at the reporting date	$	2	$	48	$	(85)	$	(37)

(1) Amounts do not accrue to shareholders.


For the Three Months Ended June 30, 2010
	Fixed Maturities & Equity Securities		GMIB Assets		GMIB Liabilities		GMIB Net
(In millions)	Fixed Maturities & Equity Securities		GMIB Assets		GMIB Liabilities		GMIB Net
Balance at April 1, 2010	$	884	$	479	$	(886)	$	(407)
Gains (losses) included in shareholders' net income:
GMIB fair value gain/(loss)		-		187		(351)		(164)
Other		8		-		-		-
Total gains (losses) included in shareholders' net income		8		187		(351)		(164)
Gains included in other comprehensive income		9		-		-		-
Gains required to adjust future policy benefits for settlement annuities⁽¹⁾		43		-		-		-
Purchases, sales and settlements:
Purchases		5		-		-		-
Settlements		(20)		(8)		16		8
Total purchases, sales and settlements		(15)		(8)		16		8
Transfers into/(out of) Level 3:
Transfers into Level 3		18		-		-		-
Transfers out of Level 3		(2)		-		-		-
Total transfers into/(out of) Level 3		16		-		-		-
Balance at June 30, 2010	$	945	$	658	$	(1,221)	$	(563)
Total gains (losses) included in income attributable to
instruments held at the reporting date	$	5	$	187	$	(351)	$	(164)

(1) Amounts do not accrue to shareholders.

For the Six Months Ended June 30, 2011
	Fixed Maturities & Equity Securities		GMIB Assets		GMIB Liabilities		GMIB Net
(In millions)	Fixed Maturities & Equity Securities		GMIB Assets		GMIB Liabilities		GMIB Net
Balance at January 1, 2011	$	933	$	480	$	(903)	$	(423)
Gains (losses) included in shareholders' net income:
GMIB fair value gain/(loss)		-		27		(48)		(21)
Other		7		-		-		-
Total gains (losses) included in shareholders' net income		7		27		(48)		(21)
Gains included in other comprehensive income		8		-		-		-
Gains required to adjust future policy benefits for settlement annuities⁽¹⁾		5		-		-		-
Purchases, sales and settlements:
Purchases		49		-		-		-
Settlements		(31)		(17)		34		17
Total purchases, sales and settlements		18		(17)		34		17
Transfers into/(out of) Level 3:
Transfers into Level 3		19		-		-		-
Transfers out of Level 3		(40)		-		-		-
Total transfers into/(out of) Level 3		(21)		-		-		-
Balance at June 30, 2011	$	950	$	490	$	(917)	$	(427)
Total gains (losses) included in income attributable to
instruments held at the reporting date	$	7	$	27	$	(48)	$	(21)

(1) Amounts do not accrue to shareholders.

For the Six Months Ended June 30, 2010
	Fixed Maturities & Equity Securities		GMIB Assets		GMIB Liabilities		GMIB Net
(In millions)	Fixed Maturities & Equity Securities		GMIB Assets		GMIB Liabilities		GMIB Net
Balance at January 1, 2010	$	845	$	482	$	(903)	$	(421)
Gains (losses) included in shareholders' net income:
GMIB fair value gain/(loss)		-		187		(347)		(160)
Other		12		-		-		-
Total gains (losses) included in shareholders' net income		12		187		(347)		(160)
Gains included in other comprehensive income		21		-		-		-
Gains required to adjust future policy benefits for settlement annuities⁽¹⁾		61		-		-		-
Purchases, sales and settlements:
Purchases		20		-		-		-
Sales		(1)		-		-		-
Settlements		(45)		(11)		29		18
Total purchases, sales and settlements		(26)		(11)		29		18
Transfers into/(out of) Level 3:
Transfers into Level 3		72		-		-		-
Transfers out of Level 3		(40)		-		-		-
Total transfers into/(out of) Level 3		32		-		-		-
Balance at June 30, 2010	$	945	$	658	$	(1,221)	$	(563)
Total gains (losses) included in income attributable to
instruments held at the reporting date	$	9	$	187	$	(347)	$	(160)

(1) Amounts do not accrue to shareholders.

Separate account assets schedule

June 30, 2011
(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)	$	292	$	1,410	$	-	$	1,702
Non-guaranteed separate accounts ⁽¹⁾		1,864		4,117		644		6,625
Total separate account assets	$	2,156	$	5,527	$	644	$	8,327

June 30, 2011
(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)	$	292	$	1,410	$	-	$	1,702
Non-guaranteed separate accounts ⁽¹⁾		1,864		4,117		644		6,625
Total separate account assets	$	2,156	$	5,527	$	644	$	8,327

December 31, 2010
(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)	$	286	$	1,418	$	-	$	1,704
Non-guaranteed separate accounts⁽¹⁾		1,947		3,663		594		6,204
Total separate account assets	$	2,233	$	5,081	$	594	$	7,908

Level 3 separate account assets

	Three Months Ended
	June 30,
(In millions)	2011		2010
Balance at April 1	$	559	$	544
Policyholder gains (losses) ⁽¹⁾		21		(2)
Purchases, sales and settlements:
Purchases		106		19
Sales		(1)		(9)
Settlements		(35)		(18)
Total purchases, sales and settlements		70		(8)
Transfers into/(out of) Level 3:
Transfers into Level 3		-		1
Transfers out of Level 3		(6)		(1)
Total transfers into/(out of) Level 3		(6)		-
Balance at June 30	$	644	$	534

(1) Included in this amount are gains of $21 million at June 30, 2011 and $3 million at June 30, 2010 attributable to instruments still held.


	Six Months Ended
	June 30,
(In millions)	2011		2010
Balance at January 1	$	594	$	550
Policyholder gains ⁽¹⁾		79		14
Purchases, sales and settlements:
Purchases		115		43
Sales		(41)		(27)
Settlements		(94)		(27)
Total purchases, sales and settlements		(20)		(11)
Transfers into/(out of) Level 3:
Transfers into Level 3		-		1
Transfers out of Level 3		(9)		(20)
Total transfers into/(out of) Level 3		(9)		(19)
Balance at June 30	$	644	$	534

	Three Months Ended
	June 30,
(In millions)	2011		2010
Balance at April 1	$	559	$	544
Policyholder gains (losses) ⁽¹⁾		21		(2)
Purchases, sales and settlements:
Purchases		106		19
Sales		(1)		(9)
Settlements		(35)		(18)
Total purchases, sales and settlements		70		(8)
Transfers into/(out of) Level 3:
Transfers into Level 3		-		1
Transfers out of Level 3		(6)		(1)
Total transfers into/(out of) Level 3		(6)		-
Balance at June 30	$	644	$	534

(1) Included in this amount are gains of $21 million at June 30, 2011 and $3 million at June 30, 2010 attributable to instruments still held.


	Six Months Ended
	June 30,
(In millions)	2011		2010
Balance at January 1	$	594	$	550
Policyholder gains ⁽¹⁾		79		14
Purchases, sales and settlements:
Purchases		115		43
Sales		(41)		(27)
Settlements		(94)		(27)
Total purchases, sales and settlements		(20)		(11)
Transfers into/(out of) Level 3:
Transfers into Level 3		-		1
Transfers out of Level 3		(9)		(20)
Total transfers into/(out of) Level 3		(9)		(19)
Balance at June 30	$	644	$	534

Financial instruments not carried at fair value

(In millions)		June 30, 2011				December 31, 2010
		Fair Value		Carrying Value		Fair Value		Carrying Value
Commercial mortgage loans	$	3,411	$	3,315	$	3,470	$	3,486
Contractholder deposit funds, excluding universal life products	$	1,016	$	1,002	$	1,001	$	989
Long-term debt, including current maturities, excluding capital leases	$	3,362	$	3,087	$	2,926	$	2,709

(In millions)		June 30, 2011				December 31, 2010
		Fair Value		Carrying Value		Fair Value		Carrying Value
Commercial mortgage loans	$	3,411	$	3,315	$	3,470	$	3,486
Contractholder deposit funds, excluding universal life products	$	1,016	$	1,002	$	1,001	$	989
Long-term debt, including current maturities, excluding capital leases	$	3,362	$	3,087	$	2,926	$	2,709

- Definition

Summarization of information required and determined to be disclosed concerning the fair value of financial instruments (as defined) classified in Level 3, including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such disclosures about the financial instruments, assets, and liabilities classified in Level 3 would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) the maximum amount of loss the Company is exposed to, based on the gross fair value of the related item; (3) quantitative information about market risks; (4) for items presented in the financial statement for which fair value measurement is elected, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (5) the difference between the aggregate fair value and unpaid principal balance of loans and long-term receivables and long-term debt instruments (as applicable); (6) the amount of gains and losses arising from changes in fair value; and (7) other required (as defined) and desired information.

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- Definition

This item represents certain of the disclosures concerning the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

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