Invested Assets (Tables)

9 Months Ended

Sep. 30, 2012

Amortized Cost and Fair Value of Fixed Maturities and Equity Securities

(a) The amortized cost and fair value of fixed maturities and equity securities were as follows:

	September 30, 2012
	Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Fair Value
	(in millions)
Fixed maturities
Tax exempt	$	18,548	$	1,628	$	19	$	20,157
Taxable
U.S. government and government agency and authority obligations		985		72		1		1,056
Corporate bonds		7,153		613		2		7,764
Foreign government and government agency obligations		6,528		422		1		6,949
Residential mortgage-backed securities		491		38		2		527
Commercial mortgage-backed securities		1,679		86		1		1,764
		16,836		1,231		7		18,060
Total fixed maturities	$	35,384	$	2,859	$	26	$	38,217
Equity securities	$	1,234	$	413	$	34	$	1,613

	December 31, 2011
	Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Fair Value
	(in millions)
Fixed maturities
Tax exempt	$	18,786	$	1,462	$	37	$	20,211
Taxable
U.S. government and government agency and authority obligations		813		57		2		868
Corporate bonds		6,049		440		24		6,465
Foreign government and government agency obligations		6,409		416		2		6,823
Residential mortgage-backed securities		821		41		7		855
Commercial mortgage-backed securities		1,884		79		1		1,962
		15,976		1,033		36		16,973
Total fixed maturities	$	34,762	$	2,495	$	73	$	37,184
Equity securities	$	1,264	$	319	$	71	$	1,512

Fair Value and Amortized Cost of Fixed Maturities by Contractual Maturity

The fair value and amortized cost of fixed maturities at September 30, 2012 by contractual maturity were as follows:

	Fair Value		Amortized Cost
	(in millions)
Due in one year or less	$	2,476	$	2,447
Due after one year through five years		13,280		12,550
Due after five years through ten years		12,299		11,039
Due after ten years		7,871		7,178
		35,926		33,214
Residential mortgage-backed securities		527		491
Commercial mortgage-backed securities		1,764		1,679
	$	38,217	$	35,384

Components of Unrealized Appreciation or Depreciation of Investments

(b) The components of unrealized appreciation or depreciation, including unrealized other-than-temporary impairment losses, of investments carried at fair value were as follows:

	September 30, 2012		December 31, 2011
	(in millions)
Fixed maturities
Gross unrealized appreciation	$	2,859	$	2,495
Gross unrealized depreciation		26		73
		2,833		2,422
Equity securities
Gross unrealized appreciation		413		319
Gross unrealized depreciation		34		71
		379		248
		3,212		2,670
Deferred income tax liability		1,124		934
	$	2,088	$	1,736

Fair Value and Gross Unrealized Depreciation of Investments in Unrealized Loss Position

The following table summarizes, for all investment securities in an unrealized loss position at September 30, 2012, the aggregate fair value and gross unrealized depreciation, including unrealized other-than-temporary impairment losses, by investment category and length of time that individual securities have continuously been in an unrealized loss position.

	Less Than 12 Months				12 Months or More				Total
	Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation
	(in millions)
Fixed maturities
Tax exempt	$	70	$	1	$	98	$	18	$	168	$	19
Taxable
U.S. government and government agency and authority obligations		28		—		37		1		65		1
Corporate bonds		170		1		49		1		219		2
Foreign government and government agency obligations		244		1		12		—		256		1
Residential mortgage-backed securities		—		—		21		2		21		2
Commercial mortgage-backed securities		34		1		1		—		35		1
		476		3		120		4		596		7
Total fixed maturities		546		4		218		22		764		26
Equity securities		180		19		53		15		233		34
	$	726	$	23	$	271	$	37	$	997	$	60

At September 30, 2012, approximately 180 individual fixed maturity and 30 equity securities were in an unrealized loss position. The Corporation does not have the intent to sell and it is not more likely than not that the Corporation will be required to sell these fixed maturities before the securities recover to their amortized cost value. In addition, the Corporation believes that none of the declines in the fair values of these fixed maturities relate to credit losses. The Corporation has the intent and ability to hold the equity securities in an unrealized loss position for a period of time sufficient to allow for the recovery of cost. The Corporation believes that none of the declines in the fair value of these fixed maturities and equity securities were other than temporary at September 30, 2012.

The following table summarizes, for all investment securities in an unrealized loss position at December 31, 2011, the aggregate fair value and gross unrealized depreciation, including unrealized other-than-temporary impairment losses, by investment category and length of time that individual securities have continuously been in an unrealized loss position.

	Less Than 12 Months				12 Months or More				Total
	Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation
	(in millions)
Fixed maturities
Tax exempt	$	81	$	1	$	240	$	36	$	321	$	37
Taxable
U.S. government and government agency and authority obligations		19		1		18		1		37		2
Corporate bonds		489		14		176		10		665		24
Foreign government and government agency obligations		499		1		21		1		520		2
Residential mortgage-backed securities		77		2		22		5		99		7
Commercial mortgage-backed securities		34		1		—		—		34		1
		1,118		19		237		17		1,355		36
Total fixed maturities		1,199		20		477		53		1,676		73
Equity securities		231		45		199		26		430		71
	$	1,430	$	65	$	676	$	79	$	2,106	$	144

Change in Unrealized Appreciation or Depreciation of Investments Carried at Fair Value

The change in unrealized appreciation or depreciation of investments carried at fair value, including the change in unrealized other-than-temporary impairment losses, was as follows:

	Periods Ended September 30
	Third Quarter					Nine Months
	2012		2011			2012		2011
	(in millions)
Change in unrealized appreciation of fixed maturities	$	295	$	478		$	411	$	731
Change in unrealized appreciation of equity securities		57		(276	)		131		(170	)
		352		202			542		561
Deferred income tax		123		70			190		196
	$	229	$	132		$	352	$	365

Realized Investment Gains and Losses

(c) Realized investment gains and losses were as follows:

	Periods Ended September 30
	Third Quarter						Nine Months
	2012			2011			2012			2011
	(in millions)
Fixed maturities
Gross realized gains	$	35		$	25		$	97		$	48
Gross realized losses		(8	)		(10	)		(18	)		(25	)
Other-than-temporary impairment losses		(2	)		(1	)		(4	)		(1	)
		25			14			75			22
Equity securities
Gross realized gains		25			16			50			45
Gross realized losses		—			—			—			(1	)
Other-than-temporary impairment losses		(5	)		(6	)		(40	)		(22	)
		20			10			10			22
Other invested assets		(45	)		47			18			256
	$	—		$	71		$	103		$	300