Invested Assets and Related Income (Tables)

12 Months Ended

Dec. 31, 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:

	December 31, 2014
	Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Fair Value
	(in millions)
Fixed maturities
Tax exempt	$	18,614	$	1,174	$	16	$	19,772
Taxable
U.S. government and government agency and authority obligations		1,962		46		1		2,007
Corporate bonds		8,741		327		40		9,028
Foreign government and government agency obligations		6,380		295		3		6,672
Residential mortgage-backed securities		192		20		1		211
Commercial mortgage-backed securities		1,069		22		1		1,090
		18,344		710		46		19,008
Total fixed maturities	$	36,958	$	1,884	$	62	$	38,780
Equity securities	$	1,089	$	894	$	19	$	1,964

	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

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, 2014 and 2013:

	2014		2013
	(in millions)
Special revenue bonds	$	12,936	$	11,717
State general obligation bonds		2,415		2,292
Municipal and political subdivision general obligation bonds		2,378		2,220
Pre-refunded bonds		2,043		2,192
	$	19,772	$	18,421

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, 2014 and 2013, 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, 2014
	Fair Value
State	Special Revenue Bonds		Municipal and  Political Subdivision General Obligations		State General Obligations		Total		Amortized Cost
	(in millions)
New York	$	2,046	$	173	$	43	$	2,262	$	2,135
Texas		883		852		211		1,946		1,829
California		1,098		153		256		1,507		1,422
Illinois		608		381		97		1,086		1,022
Florida		850		63		167		1,080		1,017

	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

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, 2014 and 2013, 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.

	2014				2013
Country	Fair Value		Amortized Cost		Fair Value		Amortized Cost
	(in millions)
Canada	$	1,893	$	1,823	$	1,993	$	1,953
United Kingdom		1,230		1,163		1,026		1,004
Germany		1,102		1,045		1,241		1,211
Australia		746		700		739		700
Brazil		232		231		270		270

Fair Value and Amortized Cost of Fixed Maturities by Contractual Maturity

The fair value and amortized cost of fixed maturities at December 31, 2014 by contractual maturity were as follows:

	Fair Value		Amortized Cost
	(in millions)
Due in one year or less	$	2,947	$	2,922
Due after one year through five years		12,906		12,406
Due after five years through ten years		12,814		12,041
Due after ten years		8,812		8,328
		37,479		35,697
Residential mortgage-backed securities		211		192
Commercial mortgage-backed securities		1,090		1,069
	$	38,780	$	36,958

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
	2014		2013
	(in millions)
Fixed maturities
Gross unrealized appreciation	$	1,884	$	1,457
Gross unrealized depreciation		62		325
		1,822		1,132
Equity securities
Gross unrealized appreciation		894		756
Gross unrealized depreciation		19		3
		875		753
		2,697		1,885
Deferred income tax liability		944		660
	$	1,753	$	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 December 31, 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	$	422	$	3	$	305	$	13	$	727	$	16
Taxable
U.S. government and government agency and authority obligations		936		1		36		—		972		1
Corporate bonds		1,327		23		888		17		2,215		40
Foreign government and government agency obligations		318		1		207		2		525		3
Residential mortgage-backed securities		—		—		7		1		7		1
Commercial mortgage-backed securities		106		—		67		1		173		1
		2,687		25		1,205		21		3,892		46
Total fixed maturities		3,109		28		1,510		34		4,619		62
Equity securities		67		11		11		8		78		19
	$	3,176	$	39	$	1,521	$	42	$	4,697	$	81

At December 31, 2014, approximately 735 individual fixed maturities and 15 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, 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:

	Years Ended December 31
	2014		2013			2012
	(in millions)
Change in unrealized appreciation of fixed maturities	$	690	$	(1,546	)	$	256
Change in unrealized appreciation of equity securities		122		334			171
		812		(1,212	)		427
Deferred income tax (credit)		284		(424	)		150
	$	528	$	(788	)	$	277

Sources of Net Investment Income

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

	Years Ended December 31
	2014		2013		2012
	(in millions)
Fixed maturities	$	1,314	$	1,380	$	1,465
Equity securities		41		38		40
Short term investments		18		16		18
Other		21		31		33
Gross investment income		1,394		1,465		1,556
Investment expenses		42		49		38
	$	1,352	$	1,416	$	1,518

Realized Investment Gains and Losses

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

	Years Ended December 31
	2014			2013			2012
	(in millions)
Fixed maturities
Gross realized gains	$	126		$	62		$	124
Gross realized losses		(36	)		(42	)		(20	)
Other-than-temporary impairment losses		(5	)		(2	)		(5	)
		85			18			99
Equity securities
Gross realized gains		137			204			68
Gross realized losses		—			(1	)		—
Other-than-temporary impairment losses		(2	)		(9	)		(40	)
		135			194			28
Other invested assets		149			190			66
	$	369		$	402		$	193