Invested Assets and Related Income (Tables)

12 Months Ended

Dec. 31, 2013

Text Block [Abstract]

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:

	December 31, 2013
	Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Fair Value
	(in millions)
Fixed maturities
Tax exempt	$	17,808	$	802	$	189	$	18,421
Taxable
U.S. government and government agency and authority obligations		784		27		9		802
Corporate bonds		9,032		370		88		9,314
Foreign government and government agency obligations		6,719		206		35		6,890
Residential mortgage-backed securities		277		23		1		299
Commercial mortgage-backed securities		1,339		29		3		1,365
		18,151		655		136		18,670
Total fixed maturities	$	35,959	$	1,457	$	325	$	37,091
Equity securities	$	1,057	$	756	$	3	$	1,810

	December 31, 2012
	Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Fair Value
	(in millions)
Fixed maturities
Tax exempt	$	18,410	$	1,522	$	19	$	19,913
Taxable
U.S. government and government agency and authority obligations		973		66		—		1,039
Corporate bonds		7,331		609		3		7,937
Foreign government and government agency obligations		6,614		395		1		7,008
Residential mortgage-backed securities		421		36		2		455
Commercial mortgage-backed securities		1,649		76		1		1,724
		16,988		1,182		7		18,163
Total fixed maturities	$	35,398	$	2,704	$	26	$	38,076
Equity securities	$	1,244	$	453	$	34	$	1,663

Summary of Fair Value of Tax Exempt Fixed Maturities

The following table summarizes the fair value of the tax exempt fixed maturities at December 31, 2013 and 2012:

	2013		2012
	(in millions)
Special revenue bonds	$	11,717	$	12,233
State general obligation bonds		2,292		2,246
Municipal and political subdivision general obligation bonds		2,220		2,505
Pre-refunded bonds		2,192		2,929
	$	18,421	$	19,913

Fair Value and Amortized Cost of Tax Exempt Fixed Maturities Other Than Pre-Refunded Bonds

The following table summarizes the fair value and amortized cost of the tax exempt fixed maturities other than pre-refunded bonds held at December 31, 2013 and 2012, for the five states having the largest concentration of issuers within the tax exempt fixed maturity portfolio. The remainder of tax exempt fixed maturities were issued by a broad range of other states and municipalities and political subdivisions within those states. In the following table, “state” identifies the issuer or the location of the issuing municipality or political subdivision within a state.

	December 31, 2013
	Fair Value
State	Special Revenue Bonds		Municipal and  Political Subdivision General Obligations		State General Obligations		Total		Amortized Cost
	(in millions)
Texas	$	930	$	830	$	230	$	1,990	$	1,904
New York		1,611		197		31		1,839		1,809
California		859		82		198		1,139		1,093
Illinois		577		483		56		1,116		1,094
Florida		757		38		108		903		877

	December 31, 2012
	Fair Value
State	Special Revenue Bonds		Municipal and Political Subdivision General Obligations		State General Obligations		Total		Amortized Cost
	(in millions)
Texas	$	1,041	$	1,053	$	267	$	2,361	$	2,171
New York		1,401		169		33		1,603		1,487
Illinois		683		518		59		1,260		1,161
California		888		107		194		1,189		1,089
Florida		771		27		114		912		844

Fair Value and Amortized Cost of Foreign Government and Government Agency Fixed Maturities

The following table summarizes the fair value and amortized cost of the foreign government and government agency fixed maturities held at December 31, 2013 and 2012, for the five countries having the largest concentration of issuers within the foreign government and government agency fixed maturity portfolio. In the following table, “country” identifies the issuer or the location of the issuing government agency or regional government within a country.

	2013				2012
Country	Fair Value		Amortized Cost		Fair Value		Amortized Cost
	(in millions)
Canada	$	1,993	$	1,953	$	2,157	$	2,060
Germany		1,241		1,211		1,127		1,070
United Kingdom		1,026		1,004		1,024		939
Australia		739		700		742		663
Brazil		270		270		310		310

Fair Value and Amortized Cost of Fixed Maturities by Contractual Maturity

The fair value and amortized cost of fixed maturities at December 31, 2013 by contractual maturity were as follows:

	Fair Value		Amortized Cost
	(in millions)
Due in one year or less	$	2,241	$	2,212
Due after one year through five years		13,769		13,202
Due after five years through ten years		11,743		11,294
Due after ten years		7,674		7,635
		35,427		34,343
Residential mortgage-backed securities		299		277
Commercial mortgage-backed securities		1,365		1,339
	$	37,091	$	35,959

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:

	December 31
	2013		2012
	(in millions)
Fixed maturities
Gross unrealized appreciation	$	1,457	$	2,704
Gross unrealized depreciation		325		26
		1,132		2,678
Equity securities
Gross unrealized appreciation		756		453
Gross unrealized depreciation		3		34
		753		419
		1,885		3,097
Deferred income tax liability		660		1,084
	$	1,225	$	2,013

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 December 31, 2013, 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	$	3,417	$	144	$	307	$	45	$	3,724	$	189
Taxable
U.S. government and government agency and authority obligations		213		6		35		3		248		9
Corporate bonds		2,526		76		222		12		2,748		88
Foreign government and government agency obligations		1,735		32		75		3		1,810		35
Residential mortgage-backed securities		4		—		14		1		18		1
Commercial mortgage-backed securities		153		1		39		2		192		3
		4,631		115		385		21		5,016		136
Total fixed maturities		8,048		259		692		66		8,740		325
Equity securities		41		3		—		—		41		3
	$	8,089	$	262	$	692	$	66	$	8,781	$	328

At December 31, 2013, approximately 1,160 individual fixed maturities and 10 individual 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 December 31, 2013.

The following table summarizes, for all investment securities in an unrealized loss position at December 31, 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	$	344	$	6	$	104	$	13	$	448	$	19
Taxable
U.S. government and government agency and authority obligations		28		—		20		—		48		—
Corporate bonds		289		2		14		1		303		3
Foreign government and government agency obligations		429		1		13		—		442		1
Residential mortgage-backed securities		1		—		19		2		20		2
Commercial mortgage-backed securities		105		1		3		—		108		1
		852		4		69		3		921		7
Total fixed maturities		1,196		10		173		16		1,369		26
Equity securities		182		21		63		13		245		34
	$	1,378	$	31	$	236	$	29	$	1,614	$	60

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:

	Years Ended December 31
	2013			2012		2011
	(in millions)
Change in unrealized appreciation of fixed maturities	$	(1,546	)	$	256	$	964
Change in unrealized appreciation of equity securities		334			171		(17	)
		(1,212	)		427		947
Deferred income tax (credit)		(424	)		150		331
	$	(788	)	$	277	$	616

Sources of Net Investment Income

(c)  The sources of net investment income were as follows:

	Years Ended December 31
	2013		2012		2011
	(in millions)
Fixed maturities	$	1,380	$	1,465	$	1,549
Equity securities		38		40		34
Short term investments		16		18		16
Other		31		33		45
Gross investment income		1,465		1,556		1,644
Investment expenses		49		38		39
	$	1,416	$	1,518	$	1,605

Realized Investment Gains and Losses

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

	Years Ended December 31
	2013			2012			2011
	(in millions)
Fixed maturities
Gross realized gains	$	62		$	124		$	70
Gross realized losses		(42	)		(20	)		(39	)
Other-than-temporary impairment losses		(2	)		(5	)		(1	)
		18			99			30
Equity securities
Gross realized gains		204			68			74
Gross realized losses		(1	)		—			(1	)
Other-than-temporary impairment losses		(9	)		(40	)		(22	)
		194			28			51
Other invested assets		190			66			207
	$	402		$	193		$	288