Invested Assets (Tables)

9 Months Ended

Sep. 30, 2014

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:

	September 30, 2014
	Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Fair Value
	(in millions)
Fixed maturities
Tax exempt	$	18,214	$	1,144	$	18	$	19,340
Taxable
U.S. government and government agency and authority obligations		1,979		40		2		2,017
Corporate bonds		8,825		333		35		9,123
Foreign government and government agency obligations		6,531		257		7		6,781
Residential mortgage-backed securities		210		21		1		230
Commercial mortgage-backed securities		1,079		21		2		1,098
		18,624		672		47		19,249
Total fixed maturities	$	36,838	$	1,816	$	65	$	38,589
Equity securities	$	1,098	$	804	$	14	$	1,888

	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

Fair Value and Amortized Cost of Fixed Maturities by Contractual Maturity

The fair value and amortized cost of fixed maturities at September 30, 2014 by contractual maturity were as follows:

	Fair Value		Amortized Cost
	(in millions)
Due in one year or less	$	2,097	$	2,073
Due after one year through five years		14,234		13,691
Due after five years through ten years		12,617		11,923
Due after ten years		8,313		7,862
		37,261		35,549
Residential mortgage-backed securities		230		210
Commercial mortgage-backed securities		1,098		1,079
	$	38,589	$	36,838

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 2014		December 31 2013
	(in millions)
Fixed maturities
Gross unrealized appreciation	$	1,816	$	1,457
Gross unrealized depreciation		65		325
		1,751		1,132
Equity securities
Gross unrealized appreciation		804		756
Gross unrealized depreciation		14		3
		790		753
		2,541		1,885
Deferred income tax liability		889		660
	$	1,652	$	1,225

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, 2014, 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	$	366	$	2	$	449	$	16	$	815	$	18
Taxable
U.S. government and government agency and authority obligations		616		—		35		2		651		2
Corporate bonds		1,193		11		1,062		24		2,255		35
Foreign government and government agency obligations		364		1		479		6		843		7
Residential mortgage-backed securities		2		—		5		1		7		1
Commercial mortgage-backed securities		122		1		42		1		164		2
		2,297		13		1,623		34		3,920		47
Total fixed maturities		2,663		15		2,072		50		4,735		65
Equity securities		99		14		—		—		99		14
	$	2,762	$	29	$	2,072	$	50	$	4,834	$	79

At September 30, 2014, approximately 780 individual fixed maturities and 20 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 September 30, 2014.

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

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
	2014			2013			2014		2013
	(in millions)
Change in unrealized appreciation of fixed maturities	$	2		$	(99	)	$	619	$	(1,314	)
Change in unrealized appreciation of equity securities		(73	)		94			37		239
		(71	)		(5	)		656		(1,075	)
Deferred income tax (credit)		(25	)		(2	)		229		(376	)
	$	(46	)	$	(3	)	$	427	$	(699	)

Realized Investment Gains and Losses

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

	Periods Ended September 30
	Third Quarter						Nine Months
	2014			2013			2014			2013
	(in millions)
Fixed maturities
Gross realized gains	$	27		$	17		$	104		$	44
Gross realized losses		(5	)		(22	)		(33	)		(32	)
Other-than-temporary impairment losses		—			(2	)		(4	)		(2	)
		22			(7	)		67			10
Equity securities
Gross realized gains		43			5			132			179
Gross realized losses		—			(1	)		—			(1	)
Other-than-temporary impairment losses		—			(2	)		(1	)		(9	)
		43			2			131			169
Other invested assets		45			23			153			156
	$	110		$	18		$	351		$	335