Fair Value (Tables)

3 Months Ended

Mar. 31, 2013

Fair Value Disclosures [Abstract]

Assets and liabilities measured at fair value on a recurring basis

Assets and liabilities measured at fair value on a recurring basis are summarized below.

March 31, 2013								Total Assets/(Liabilities) at Fair Value
(In millions)	Level 1		Level 2		Level 3
Assets
Fixed maturity securities:
Corporate and other bonds	$	32	$	22,020	$	302		$	22,354
States, municipalities and political subdivisions	—		10,819		129			10,948
Asset-backed:
Residential mortgage-backed	—		5,233		450			5,683
Commercial mortgage-backed	—		1,813		177			1,990
Other asset-backed	—		559		396			955
Total asset-backed	—		7,605		1,023			8,628
U.S. Treasury and obligations of government-sponsored enterprises	155		26		—			181
Foreign government	104		448		—			552
Redeemable preferred stock	51		59		26			136
Total fixed maturity securities	342		40,977		1,480			42,799
Equity securities	120		62		19			201
Other invested assets	—		49		—			49
Short term investments	1,102		397		5			1,504
Life settlement contracts, included in Other assets	—		—		95			95
Separate account business	11		266		2			279
Total assets	$	1,575	$	41,751	$	1,601		$	44,927
Liabilities
Derivative financial instruments, included in Other liabilities	$	—	$	—	$	(1	)	$	(1	)
Total liabilities	$	—	$	—	$	(1	)	$	(1	)

December 31, 2012									Total Assets/(Liabilities) at Fair Value
(In millions)	Level 1		Level 2			Level 3
Assets
Fixed maturity securities:
Corporate and other bonds	$	6	$	22,011		$	219		$	22,236
States, municipalities and political subdivisions	—		10,687			96			10,783
Asset-backed:
Residential mortgage-backed	—		5,507			413			5,920
Commercial mortgage-backed	—		1,693			129			1,822
Other asset-backed	—		584			368			952
Total asset-backed	—		7,784			910			8,694
U.S. Treasury and obligations of government-sponsored enterprises	158		24			—			182
Foreign government	140		473			—			613
Redeemable preferred stock	40		59			26			125
Total fixed maturity securities	344		41,038			1,251			42,633
Equity securities	117		98			34			249
Other invested assets	—		58			1			59
Short term investments	987		799			6			1,792
Life settlement contracts, included in Other assets	—		—			100			100
Separate account business	4		306			2			312
Total assets	$	1,452	$	42,299		$	1,394		$	45,145
Liabilities
Derivative financial instruments, included in Other liabilities	$	—	$	(2	)	$	(1	)	$	(3	)
Total liabilities	$	—	$	(2	)	$	(1	)	$	(3	)

Table of reconciliation for assets and liablities measured at fair value on a recurring basis using significant unobservable inputs

The tables below present a reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2013 and 2012.

Level 3 (In millions)	Balance at January 1, 2013		Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss)*			Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss)		Purchases		Sales			Settlements			Transfers into Level 3		Transfers out of Level 3			Balance at March 31, 2013			Unrealized gains (losses) on Level 3 assets and liabilities held at March 31, 2013 recognized in net income (loss)*
Fixed maturity securities:
Corporate and other bonds	$	219	$	—		$	2	$	110	$	(17	)	$	(20	)	$	26	$	(18	)	$	302		$	(1	)
States, municipalities and political subdivisions	96		(3		)	—		85		(47		)	(2		)	—		—			129			—
Asset-backed:
Residential mortgage-backed	413		3			—		61		—			(11		)	—		(16		)	450			—
Commercial mortgage-backed	129		1			5		73		—			(7		)	—		(24		)	177			—
Other asset-backed	368		3			1		136		(99		)	(13		)	—		—			396			—
Total asset-backed	910		7			6		270		(99		)	(31		)	—		(40		)	1,023			—
Redeemable preferred stock	26		—			—		—		—			—			—		—			26			—
Total fixed maturity securities	1,251		4			8		465		(163		)	(53		)	26		(58		)	1,480			(1		)
Equity securities	34		(15		)	1		—		—			—			—		(1		)	19			(15		)
Other invested assets, including derivatives, net	—		—			—		—		(1		)	—			—		—			(1		)	—
Short term investments	6		—			—		—		(1		)	—			—		—			5			—
Life settlement contracts	100		7			—		—		—			(12		)	—		—			95			—
Separate account business	2		—			—		—		—			—			—		—			2			—
Total	$	1,393	$	(4	)	$	9	$	465	$	(165	)	$	(65	)	$	26	$	(59	)	$	1,600		$	(16	)

Level 3 (In millions)	Balance at January 1, 2012		Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss)*		Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss)			Purchases		Sales			Settlements			Transfers into Level 3		Transfers out of Level 3			Balance at March 31, 2012		Unrealized gains (losses) on Level 3 assets and liabilities held at March 31, 2012 recognized in net income (loss)*
Fixed maturity securities:
Corporate and other bonds	$	482	$	3	$	4		$	79	$	(86	)	$	(19	)	$	33	$	(10	)	$	486	$	—
States, municipalities and political subdivisions	171		—		2			—		—			—			—		—			173		—
Asset-backed:
Residential mortgage-backed	452		1		(4		)	38		—			(7		)	—		(33		)	447		—
Commercial mortgage-backed	59		—		4			42		—			—			—		—			105		—
Other asset-backed	343		4		4			176		(77		)	(25		)	—		(41		)	384		—
Total asset-backed	854		5		4			256		(77		)	(32		)	—		(74		)	936		—
Redeemable preferred stock	—		—		—			53		—			—			—		—			53		—
Total fixed maturity securities	1,507		8		10			388		(163		)	(51		)	33		(84		)	1,648		—
Equity securities	67		—		(3		)	11		(1		)	—			—		—			74		(2		)
Other invested assets, including derivatives, net	10		—		—			—		—			—			—		—			10		—
Short term investments	27		—		—			12		—			(39		)	—		—			—		—
Life settlement contracts	117		3		—			—		—			(5		)	—		—			115		(1		)
Separate account business	23		—		—			—		(19		)	—			—		—			4		—
Total	$	1,751	$	11	$	7		$	411	$	(183	)	$	(95	)	$	33	$	(84	)	$	1,851	$	(3	)

Quantitative information about significant unobservable inputs in the fair value measurement of level 3 assets

Assets (In millions)	Fair Value at March 31, 2013		Valuation Technique(s)	Unobservable Input(s)	Range  (Weighted Average)
Fixed maturity securities	$	78	Discounted cash flow	Expected call date	3.0 - 4.6 years (4.0 years)
				Credit spread adjustment	0.02% - 0.48% (0.17%)
	$	97	Market approach	Private offering price	$34.70 - $122.09 ($102.97)
Equity securities	$	19	Market approach	Private offering price	$33.73 - $3,970.99 per share ($1,114.32 per share)
Life settlement contracts	$	95	Discounted cash flow	Discount rate risk premium	9%
				Mortality assumption	69% - 883% (209.2%)

Assets (In millions)	Fair Value at December 31, 2012		Valuation Technique(s)	Unobservable Input(s)	Range  (Weighted Average)
Fixed maturity securities	$	121	Discounted cash flow	Expected call date	3.3 - 5.3 years (4.3 years)
				Credit spread adjustment	0.02% - 0.48% (0.17%)
	$	72	Market approach	Private offering price	$42.39 - $102.32 ($100.11)
Equity securities	$	34	Market approach	Private offering price	$4.54 - $3,842.00 per share ($571.17 per share)
Life settlement contracts	$	100	Discounted cash flow	Discount rate risk premium	9%
				Mortality assumption	69% - 883% (208.9%)

Carrying amount and estimated fair value of financial instrument assets and liabilities not measured at fair value

The carrying amount and estimated fair value of the Company's financial instrument assets and liabilities which are not measured at fair value on the Condensed Consolidated Balance Sheets are listed in the tables below.

March 31, 2013	Carrying Amount		Estimated Fair Value
(In millions)			Level 1		Level 2		Level 3		Total
Financial assets
Notes receivable for the issuance of common stock	$	20	$	—	$	—	$	20	$	20
Mortgage loans	425		—		—		449		449
Financial liabilities
Premium deposits and annuity contracts	$	96	$	—	$	—	$	100	$	100
Short term debt	13		—		13		—		13
Long term debt	2,558		—		3,016		—		3,016

December 31, 2012	Carrying Amount		Estimated Fair Value
(In millions)			Level 1		Level 2		Level 3		Total
Financial assets
Notes receivable for the issuance of common stock	$	21	$	—	$	—	$	21	$	21
Mortgage loans	401		—		—		418		418
Financial liabilities
Premium deposits and annuity contracts	$	100	$	—	$	—	$	104	$	104
Short term debt	13		—		13		—		13
Long term debt	2,557		—		3,016		—		3,016