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Investments and Cash (Tables)
 3 Months Ended
Mar. 31, 2015
Investments, Debt and Equity Securities [Abstract]  
Net Investment Income
Net Investment Income
 
 
First Quarter
 
2015

2014
 
(in millions)
Income from fixed-maturity securities managed by third parties
$
82

 
$
80

Income from internally managed securities:
 
 
 
Fixed maturities
15

 
20

Other invested assets
6

 
5

Gross investment income
103

 
105

Investment expenses
(2
)
 
(2
)
Net investment income
$
101

 
$
103
Net Realized Investment Gains (Losses)
Net Realized Investment Gains (Losses)
 
 
First Quarter
 
2015
 
2014
 
(in millions)
Gross realized gains on available-for-sale securities
$
24

 
$
4

Gross realized gains on other assets in investment portfolio
1

 
5

Gross realized losses on available-for-sale securities
(1
)
 
(2
)
Gross realized losses on other assets in investment portfolio
(1
)
 
0

Other-than-temporary impairment
(7
)
 
(5
)
Net realized investment gains (losses)
$
16

 
$
2
Roll Forward of Credit Losses in the Investment Portfolio
Roll Forward of Credit Losses
in the Investment Portfolio

 
First Quarter
 
2015
 
2014
 
(in millions)
Balance, beginning of period
$
124

 
$
80

Additions for credit losses on securities for which an other-than-temporary-impairment was not previously recognized
—

 
1

Reductions for securities sold and other settlement during the period
(21
)
 
—

Additions for credit losses on securities for which an other-than-temporary-impairment was previously recognized
3

 
4

Balance, end of period
$
106

 
$
85
Fixed Maturity Securities and Short Term Investments by Security Type
Fixed-Maturity Securities and Short-Term Investments
by Security Type 
As of March 31, 2015

Investment Category
 
Percent
of
Total(1)
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
 
AOCI(2)
Gain
(Loss) on
Securities
with
Other-Than-Temporary Impairment
 
Weighted
Average
Credit
Rating
 (3)
 
 
(dollars in millions)
Fixed-maturity securities:
 
 

 
 

 
 

 
 

 
 

 
 

 
 
Obligations of state and political subdivisions
 
52
%
 
$
5,099

 
$
361

 
$
(2
)
 
$
5,458

 
$
4

 
AA
U.S. government and agencies
 
5

 
464

 
33

 
0

 
497

 
—

 
AA+
Corporate securities
 
14

 
1,340

 
65

 
(6
)
 
1,399

 
(4
)
 
A
Mortgage-backed securities(4):
 
0

 
 
 
 
 
 

 
 
 
 

 
 
RMBS
 
12

 
1,145

 
56

 
(16
)
 
1,185

 
5

 
A
CMBS
 
6

 
573

 
27

 
0

 
600

 
—

 
AAA
Asset-backed securities
 
4

 
394

 
7

 
—

 
401

 
3

 
BBB-
Foreign government securities
 
3

 
295

 
6

 
(8
)
 
293

 
0

 
AA+
Total fixed-maturity securities
 
96

 
9,310

 
555

 
(32
)
 
9,833

 
8

 
AA-
Short-term investments
 
4

 
349

 
0

 
0

 
349

 
—

 
AAA
Total investment portfolio
 
100
%
 
$
9,659

 
$
555

 
$
(32
)
 
$
10,182

 
$
8

 
AA-

Fixed-Maturity Securities and Short-Term Investments
by Security Type 
As of December 31, 2014 

Investment Category
 
Percent
of
Total(1)
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
 
AOCI
Gain
(Loss) on
Securities
with
Other-Than-Temporary Impairment
 
Weighted
Average
Credit
Rating
 (3)
 
 
(dollars in millions)
Fixed-maturity securities:
 
 

 
 

 
 

 
 

 
 

 
 

 
 
Obligations of state and political subdivisions
 
50
%
 
$
5,416

 
$
380

 
$
(1
)
 
$
5,795

 
$
7

 
AA
U.S. government and agencies
 
6

 
635

 
31

 
(1
)
 
665

 
—

 
AA+
Corporate securities
 
12

 
1,320

 
53

 
(5
)
 
1,368

 
(2
)
 
A
Mortgage-backed securities(4):
 
 

 
 

 
 

 
 

 
 

 
 

 
 
RMBS
 
12

 
1,255

 
51

 
(21
)
 
1,285

 
0

 
A-
CMBS
 
6

 
639

 
20

 
0

 
659

 
—

 
AAA
Asset-backed securities
 
4

 
411

 
9

 
(3
)
 
417

 
3

 
BBB-
Foreign government securities
 
3

 
296

 
8

 
(2
)
 
302

 
—

 
AA+
Total fixed-maturity securities
 
93

 
9,972

 
552

 
(33
)
 
10,491

 
8

 
AA-
Short-term investments
 
7

 
767

 
0

 
0

 
767

 
0

 
AA+
Total investment portfolio
 
100
%
 
$
10,739

 
$
552

 
$
(33
)
 
$
11,258

 
$
8

 
AA-
____________________
(1)
Based on amortized cost.
 
(2)
Accumulated OCI. See also Note 17, Shareholders' Equity.
 
(3)
Ratings in the tables above represent the lower of the Moody’s and S&P classifications except for bonds purchased for loss mitigation or risk management strategies, which use internal ratings classifications. The Company’s portfolio consists primarily of high-quality, liquid instruments.
 
(4)
Government-agency obligations were approximately 47% of mortgage backed securities as of March 31, 2015 and 44% as of December 31, 2014 based on fair value.

Fixed Maturity Securities Gross Unrealized Loss by Length of Time
Fixed-Maturity Securities
Gross Unrealized Loss by Length of Time
As of March 31, 2015
 
 
Less than 12 months
 
12 months or more
 
Total
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
 
(dollars in millions)
Obligations of state and political subdivisions
$
189

 
$
(2
)
 
$
5

 
$
0

 
$
194

 
$
(2
)
U.S. government and agencies
26

 
0

 
12

 
0

 
38

 
0

Corporate securities
194

 
(6
)
 
5

 
0

 
199

 
(6
)
Mortgage-backed securities:
 
 
 
 
 
 
 

 


 


RMBS
94

 
(1
)
 
85

 
(15
)
 
179

 
(16
)
CMBS
21

 
0

 
2

 
0

 
23

 
0

Asset-backed securities
—

 
—

 
—

 
—

 
—

 
—

Foreign government securities
156

 
(8
)
 
—

 
—

 
156

 
(8
)
Total
$
680

 
$
(17
)
 
$
109

 
$
(15
)
 
$
789

 
$
(32
)
Number of securities (1)
 

 
166

 
 

 
24

 
 

 
187

Number of securities with other-than-temporary impairment
 

 
2

 
 

 
3

 
 

 
5

 
Fixed-Maturity Securities
Gross Unrealized Loss by Length of Time
As of December 31, 2014

 
Less than 12 months
 
12 months or more
 
Total
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
 
(dollars in millions)
Obligations of state and political subdivisions
$
64

 
$
0

 
$
25

 
$
(1
)
 
$
89

 
$
(1
)
U.S. government and agencies
139

 
0

 
68

 
(1
)
 
207

 
(1
)
Corporate securities
189

 
(3
)
 
104

 
(2
)
 
293

 
(5
)
Mortgage-backed securities:
 

 
 

 
 

 
 

 


 


RMBS
205

 
(3
)
 
159

 
(18
)
 
364

 
(21
)
CMBS
36

 
0

 
19

 
0

 
55

 
0

Asset-backed securities
56

 
(2
)
 
18

 
(1
)
 
74

 
(3
)
Foreign government securities
108

 
(2
)
 
0

 
0

 
108

 
(2
)
Total
$
797

 
$
(10
)
 
$
393

 
$
(23
)
 
$
1,190

 
$
(33
)
Number of securities (1)
 

 
125

 
 

 
82

 
 

 
198

Number of securities with other-than-temporary impairment
 

 
3

 
 

 
7

 
 

 
10


___________________
(1)
The number of securities does not add across because lots of the same securities have been purchased at different times and appear in both categories above (i.e. Less than 12 months and 12 months or more). If a security appears in both categories, it is counted only once in the total column.
Distribution of Fixed Maturity Securities by Contractual Maturity
Distribution of Fixed-Maturity Securities
by Contractual Maturity
As of March 31, 2015
 
 
Amortized
Cost
 
Estimated
Fair Value
 
(in millions)
Due within one year
$
156

 
$
158

Due after one year through five years
1,706

 
1,763

Due after five years through 10 years
2,146

 
2,288

Due after 10 years
3,584

 
3,839

Mortgage-backed securities:
 

 
 

RMBS
1,145

 
1,185

CMBS
573

 
600

Total
$
9,310

 
$
9,833
Internally Managed Investment Portfolio
Internally Managed Portfolio
Carrying Value

 
As of
March 31, 2015
 
As of
December 31, 2014
 
(in millions)
Assets purchased for loss mitigation and other risk management purposes:
 
 
 
Fixed-maturity securities
721

 
835

Other invested assets
41

 
46

Other
91

 
79

Total
$
853

 
$
960