Fair Values of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2014

Fair Value Disclosures [Abstract]

Carrying Values and Fair Values of Financial Instruments

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

	December 31
	2014				2013
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(in millions)
Assets
Invested assets
Short term investments	$	1,318	$	1,318	$	2,114	$	2,114
Fixed maturities (Note 2)		38,780		38,780		37,091		37,091
Equity securities		1,964		1,964		1,810		1,810
Liabilities
Long term debt (Note 6)		3,300		4,013		3,300		3,806

Fair Value 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:

	December 31, 2014
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Short term investments	$	206	$	1,112	$	—	$	1,318
Fixed maturities
Tax exempt		—		19,769		3		19,772
Taxable
U.S. government and government agency and authority obligations		—		2,007		—		2,007
Corporate bonds		—		8,912		116		9,028
Foreign government and government agency obligations		—		6,663		9		6,672
Residential mortgage-backed securities		—		210		1		211
Commercial mortgage-backed securities		—		1,090		—		1,090
		—		18,882		126		19,008
Total fixed maturities		—		38,651		129		38,780
Equity securities		1,958		—		6		1,964
	$	2,164	$	39,763	$	135	$	42,062
Liabilities
Long term debt	$	—	$	4,013	$	—	$	4,013

	December 31, 2013
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Short term investments	$	399	$	1,715	$	—	$	2,114
Fixed maturities
Tax exempt		—		18,416		5		18,421
Taxable
U.S. government and government agency and authority obligations		—		802		—		802
Corporate bonds		—		9,179		135		9,314
Foreign government and government agency obligations		—		6,881		9		6,890
Residential mortgage-backed securities		—		293		6		299
Commercial mortgage-backed securities		—		1,345		20		1,365
		—		18,500		170		18,670
Total fixed maturities		—		36,916		175		37,091
Equity securities		1,803		—		7		1,810
		$2,202		$38,631		$182		$41,015
Liabilities
Long term debt	$	—	$	3,806	$	—	$	3,806

Fair Values of Pension Plan Assets Categorized Based Upon Lowest Level of Input

Based on the fair value hierarchy, the fair value of the Corporation’s pension plan assets categorized based upon the lowest level of input that was significant to the fair value measurement was as follows:

	December 31, 2014
	Level 1		Level 2		Level 3		Total
	(in millions)
Short term investments	$	—	$	48	$	—	$	48
Fixed maturities
U.S. government and government agency and authority obligations		—		209		—		209
Corporate bonds		—		419		—		419
Foreign government and government agency obligations		—		137		—		137
Mortgage-backed securities		—		228		—		228
Total fixed maturities		—		993		—		993
Equity securities		629		1,221		—		1,850
Other assets		28		20		7		55
	$	657	$	2,282	$	7	$	2,946

	December 31, 2013
	Level 1		Level 2		Level 3		Total
	(in millions)
Short term investments	$	—	$	37	$	—	$	37
Fixed maturities
U.S. government and government agency and authority obligations		—		224		—		224
Corporate bonds		—		370		1		371
Foreign government and government agency obligations		—		104		—		104
Mortgage-backed securities		—		211		6		217
Total fixed maturities		—		909		7		916
Equity securities		573		1,145		—		1,718
Other assets		21		14		11		46
	$	594	$	2,105	$	18	$	2,717