NET INVESTMENT (LOSS) INCOME AND INVESTMENT LOSSES, NET

12 Months Ended

Dec. 31, 2011

Net Investment Income Loss And Investment Gains Losses [Abstract]

NET INVESTMENT INCOME LOSS AND INVESTMENT GAINS LOSSES NET

10)        NET INVESTMENT INCOME (LOSS) AND INVESTMENT GAINS (LOSSES), NET

The following table breaks out Net investment income (loss) by asset category:

	2011		2010		2009
	(In Millions)
Fixed maturities	$	102	$	106	$	107
Mortgage loans on real estate		10		10		12
Policy loans		8		8		8
Other equity investments		-		(1)		(1)
Gross investment income (loss)		120		123		126
Investment expenses		(4)		(4)		(4)
Net Investment Income (Loss)	$	116	$	119	$	122

Investment gains (losses), net including changes in the valuation allowances are as follows:

	2011		2010		2009
	(In Millions)
Fixed maturities	$	(2)	$	(47)	$	(50)
Impact of repurchase/issuance of AllianceBernstein Units		2		(2)		(4)
Mortgage loans on real estate		(1)		1		(2)
Investment Gains (Losses), Net	$	(1)	$	(48)	$	(56)

There were no writedowns of mortgage loans on real estate and equity real estate for 2011, 2010 and 2009.

For 2011, 2010 and 2009, respectively, proceeds received on sales of fixed maturities classified as AFS amounted to $20 million, $88 million and $83 million. Gross gains of $1 million, $4 million and $20 million and gross losses of $1 million, $2 million and $18 million, were realized on these sales in 2011, 2010 and 2009, respectively. The change in unrealized investment gains (losses) related to fixed maturities classified as AFS for 2011, 2010 and 2009 amounted to $36 million, $98 million and $220 million, respectively.

Changes in unrealized gains (losses) reflect changes in fair value of only those fixed maturities classified as AFS and do not reflect any changes in fair value of policyholders' account balances and future policy benefits.

The net unrealized investment gains (losses) included in the balance sheets as a component of AOCI and the changes for the corresponding years, follow:

		2011		2010		2009
		(In Millions)
Balance, beginning of year		$	45	$	(11)	$	(119)
Changes in unrealized investment gains (losses)			36		98		220
Impact of unrealized investment gains (losses) attributable to:
	DAC and VOBA		(20)		(13)		(54)
	Deferred income taxes		(6)		(29)		(58)
Balance, End of Year		$	55		45		(11)
Balance, end of period comprises:
	Unrealized investment gains (losses) on fixed maturities	$	110		74		(24)
Impact of unrealized investment gains (losses) attributable to:
	DAC and VOBA		(26)		(6)		7
	Deferred income taxes		(29)		(23)		6
Total		$	55	$	45	$	(11)