Fair Values of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2012

Carrying Values and Fair Values of Financial Instruments

The carrying values and fair values of financial instruments were as follows:

	September 30, 2012				December 31, 2011
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(in millions)
Assets
Invested assets
Short term investments	$	2,284	$	2,284	$	1,893	$	1,893
Fixed maturities		38,217		38,217		37,184		37,184
Equity securities		1,613		1,613		1,512		1,512
Liabilities
Long term debt		3,575		4,427		3,575		4,085

Fair Values of Financial Instruments Categorized Based Upon Lowest Level of Input

The fair value of financial instruments categorized based upon the lowest level of input that was significant to the fair value measurement was as follows:

	September 30, 2012
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Short term investments	$	171	$	2,113	$	—	$	2,284
Fixed maturities
Tax exempt		—		20,151		6		20,157
Taxable
U.S. government and government agency and authority obligations		—		1,056		—		1,056
Corporate bonds		—		7,616		148		7,764
Foreign government and government agency obligations		—		6,949		—		6,949
Residential mortgage-backed securities		—		517		10		527
Commercial mortgage-backed securities		—		1,764		—		1,764
		—		17,902		158		18,060
Total fixed maturities		—		38,053		164		38,217
Equity securities		1,605		—		8		1,613
	$	1,776	$	40,166	$	172	$	42,114
Liabilities
Long term debt	$	—	$	4,427	$	—	$	4,427

	December 31, 2011
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Short term investments	$	117	$	1,776	$	—	$	1,893
Fixed maturities
Tax exempt		—		20,203		8		20,211
Taxable
U.S. government and government agency and authority obligations		—		868		—		868
Corporate bonds		—		6,313		152		6,465
Foreign government and government agency obligations		—		6,820		3		6,823
Residential mortgage-backed securities		—		845		10		855
Commercial mortgage-backed securities		—		1,962		—		1,962
		—		16,808		165		16,973
Total fixed maturities		—		37,011		173		37,184
Equity securities		1,504		—		8		1,512
	$	1,621	$	38,787	$	181	$	40,589
Liabilities
Long term debt	$	—	$	4,085	$	—	$	4,085