Investments (Tables)

3 Months Ended

9 Months Ended

Sep. 30, 2012

Sep. 30, 2012

Investments Tables [Abstract]

Realized gains and losses on investments table

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions)	2012		2011		2012		2011
Fixed maturities	$	8	$	(14)	$	23	$	36
Equity securities		1		(9)		5		(5)
Commercial mortgage loans		1		-		(9)		(16)
Real estate		-		-		(1)		-
Other investments, including derivatives		1		36		2		41
Realized investment gains before income taxes		11		13		20		56
Less income taxes		4		4		4		19
Net realized investment gains	$	7	$	9	$	16	$	37

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions)	2012		2011		2012		2011
Fixed maturities	$	8	$	(14)	$	23	$	36
Equity securities		1		(9)		5		(5)
Commercial mortgage loans		1		-		(9)		(16)
Real estate		-		-		(1)		-
Other investments, including derivatives		1		36		2		41
Realized investment gains before income taxes		11		13		20		56
Less income taxes		4		4		4		19
Net realized investment gains	$	7	$	9	$	16	$	37

Impairment on investments table

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions)	2012		2011		2012		2011
Credit-related (1)	$	-	$	(5)	$	(14)	$	(21)
Other		-		(22)		(2)		(24)
Total	$	-	$	(27)	$	(16)	$	(45)
(1) Credit related losses include other-than-temporary declines in fair value of fixed maturities and changes in valuation reserves related to commercial mortgage loans. There were no credit losses on fixed maturities for which a portion of the impairment was recognized in other comprehensive income.

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions)	2012		2011		2012		2011
Credit-related (1)	$	-	$	(5)	$	(14)	$	(21)
Other		-		(22)		(2)		(24)
Total	$	-	$	(27)	$	(16)	$	(45)
(1) Credit related losses include other-than-temporary declines in fair value of fixed maturities and changes in valuation reserves related to commercial mortgage loans. There were no credit losses on fixed maturities for which a portion of the impairment was recognized in other comprehensive income.

Fixed maturities and equity securities table

	As of September 30,		As of December 31,
(In millions)	2012		2011
Included in fixed maturities:
Trading securities (amortized cost: $2; $2)	$	2	$	2
Hybrid securities (amortized cost: $10; $26)		10		28
Total	$	12	$	30
Included in equity securities:
Hybrid securities (amortized cost: $84; $90)	$	68	$	65

	As of September 30,		As of December 31,
(In millions)	2012		2011
Included in fixed maturities:
Trading securities (amortized cost: $2; $2)	$	2	$	2
Hybrid securities (amortized cost: $10; $26)		10		28
Total	$	12	$	30
Included in equity securities:
Hybrid securities (amortized cost: $84; $90)	$	68	$	65

Amortized cost and fair value for fixed maturities table

		Amortized		Fair
(In millions)		Cost		Value
Due in one year or less	$	1,181	$	1,201
Due after one year through five years		5,085		5,498
Due after five years through ten years		5,436		6,166
Due after ten years		2,865		3,857
Mortgage and other asset-backed securities		998		1,134
Total	$	15,565	$	17,856

		Amortized		Fair
(In millions)		Cost		Value
Due in one year or less	$	1,181	$	1,201
Due after one year through five years		5,085		5,498
Due after five years through ten years		5,436		6,166
Due after ten years		2,865		3,857
Mortgage and other asset-backed securities		998		1,134
Total	$	15,565	$	17,856

Gross unrealized appreciation (depreciation) fixed maturities table

	September 30, 2012
				Unrealized		Unrealized
		Amortized		Appre-		Depre-		Fair
(In millions)		Cost		ciation		ciation		Value
Federal government and agency	$	513	$	404	$	-	$	917
State and local government		2,201		286		(1)		2,486
Foreign government		1,211		130		(2)		1,339
Corporate		10,643		1,356		(18)		11,981
Federal agency mortgage-backed		135		2		-		137
Other mortgage-backed		83		12		(5)		90
Other asset-backed		779		134		(7)		906
Total	$	15,565	$	2,324	$	(33)	$	17,856
(In millions)	December 31, 2011
Federal government and agency	$	552	$	406	$	-	$	958
State and local government		2,185		274		(3)		2,456
Foreign government		1,173		103		(2)		1,274
Corporate		9,460		1,070		(45)		10,485
Federal agency mortgage-backed		9		-		-		9
Other mortgage-backed		73		10		(4)		79
Other asset-backed		777		160		(11)		926
Total	$	14,229	$	2,023	$	(65)	$	16,187

	September 30, 2012
				Unrealized		Unrealized
		Amortized		Appre-		Depre-		Fair
(In millions)		Cost		ciation		ciation		Value
Federal government and agency	$	513	$	404	$	-	$	917
State and local government		2,201		286		(1)		2,486
Foreign government		1,211		130		(2)		1,339
Corporate		10,643		1,356		(18)		11,981
Federal agency mortgage-backed		135		2		-		137
Other mortgage-backed		83		12		(5)		90
Other asset-backed		779		134		(7)		906
Total	$	15,565	$	2,324	$	(33)	$	17,856
(In millions)	December 31, 2011
Federal government and agency	$	552	$	406	$	-	$	958
State and local government		2,185		274		(3)		2,456
Foreign government		1,173		103		(2)		1,274
Corporate		9,460		1,070		(45)		10,485
Federal agency mortgage-backed		9		-		-		9
Other mortgage-backed		73		10		(4)		79
Other asset-backed		777		160		(11)		926
Total	$	14,229	$	2,023	$	(65)	$	16,187

Sales of AFS fixed maturities table

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions)	2012		2011		2012		2011
Proceeds from sales	$	92	$	153	$	447	$	457
Gross gains on sales	$	6	$	8	$	25	$	36
Gross losses on sales	$	-	$	(3)	$	(1)	$	(4)

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions)	2012		2011		2012		2011
Proceeds from sales	$	92	$	153	$	447	$	457
Gross gains on sales	$	6	$	8	$	25	$	36
Gross losses on sales	$	-	$	(3)	$	(1)	$	(4)

Declines in fair value table

	Fair		Amortized		Unrealized		Number
(In millions)	Value		Cost		Depreciation		of Issues
Fixed maturities:
One year or less:
Investment grade	$	342	$	348	$	(6)	160
Below investment grade	$	98	$	101	$	(3)	69
More than one year:
Investment grade	$	219	$	231	$	(12)	53
Below investment grade	$	33	$	45	$	(12)	17

	Fair		Amortized		Unrealized		Number
(In millions)	Value		Cost		Depreciation		of Issues
Fixed maturities:
One year or less:
Investment grade	$	342	$	348	$	(6)	160
Below investment grade	$	98	$	101	$	(3)	69
More than one year:
Investment grade	$	219	$	231	$	(12)	53
Below investment grade	$	33	$	45	$	(12)	17

Credit Risk Profile of Commercial Loan Portfolio Table

(In millions)				September 30, 2012
		Debt Service Coverage Ratio
		1.30x or		1.20x to		1.10x to		1.00x to		Less than
Loan-to-Value Ratios		Greater		1.29x		1.19x		1.09x		1.00x		Total
Below 50%	$	278	$	8	$	-	$	50	$	-	$	336
50% to 59%		703		105		25		52		-		885
60% to 69%		572		75		-		24		-		671
70% to 79%		194		155		133		46		16		544
80% to 89%		45		42		131		-		58		276
90% to 99%		14		30		-		-		58		102
100% or above		-		-		30		36		66		132
Total	$	1,806	$	415	$	319	$	208	$	198	$	2,946
(In millions)					December 31, 2011
		Debt Service Coverage Ratio
		1.30x or		1.20x to		1.10x to		1.00x to		Less than
Loan-to-Value Ratios		Greater		1.29x		1.19x		1.09x		1.00x		Total
Below 50%	$	225	$	55	$	3	$	50	$	9	$	342
50% to 59%		444		47		26		-		53		570
60% to 69%		646		140		42		-		77		905
70% to 79%		117		132		120		159		33		561
80% to 89%		99		81		79		72		71		402
90% to 99%		36		35		30		58		116		275
100% or above		-		10		50		51		135		246
Total	$	1,567	$	500	$	350	$	390	$	494	$	3,301

(In millions)				September 30, 2012
		Debt Service Coverage Ratio
		1.30x or		1.20x to		1.10x to		1.00x to		Less than
Loan-to-Value Ratios		Greater		1.29x		1.19x		1.09x		1.00x		Total
Below 50%	$	278	$	8	$	-	$	50	$	-	$	336
50% to 59%		703		105		25		52		-		885
60% to 69%		572		75		-		24		-		671
70% to 79%		194		155		133		46		16		544
80% to 89%		45		42		131		-		58		276
90% to 99%		14		30		-		-		58		102
100% or above		-		-		30		36		66		132
Total	$	1,806	$	415	$	319	$	208	$	198	$	2,946
(In millions)					December 31, 2011
		Debt Service Coverage Ratio
		1.30x or		1.20x to		1.10x to		1.00x to		Less than
Loan-to-Value Ratios		Greater		1.29x		1.19x		1.09x		1.00x		Total
Below 50%	$	225	$	55	$	3	$	50	$	9	$	342
50% to 59%		444		47		26		-		53		570
60% to 69%		646		140		42		-		77		905
70% to 79%		117		132		120		159		33		561
80% to 89%		99		81		79		72		71		402
90% to 99%		36		35		30		58		116		275
100% or above		-		10		50		51		135		246
Total	$	1,567	$	500	$	350	$	390	$	494	$	3,301

Impaired commercial mortgage loans and related valuation reserves table

(In millions)		September 30, 2012					December 31, 2011
		Gross		Reserves		Net		Gross		Reserves		Net
Impaired commercial mortgage loans with valuation reserves	$	73	$	(7)	$	66	$	154	$	(19)	$	135
Impaired commercial mortgage loans with no valuation reserves		60		-		60		60		-		60
Total	$	133	$	(7)	$	126	$	214	$	(19)	$	195

(In millions)		September 30, 2012					December 31, 2011
		Gross		Reserves		Net		Gross		Reserves		Net
Impaired commercial mortgage loans with valuation reserves	$	73	$	(7)	$	66	$	154	$	(19)	$	135
Impaired commercial mortgage loans with no valuation reserves		60		-		60		60		-		60
Total	$	133	$	(7)	$	126	$	214	$	(19)	$	195

Schedule of Changes in Valuation Reserves For Commercial Mortgage Loans Table

(In millions)	2012		2011
Reserve balance, January 1,	$	19	$	12
Increase in valuation reserves		10		16
Charge-offs upon sales and repayments, net of recoveries		(3)		(1)
Transfers to other long-term investments		(16)		-
Transfers to real estate		(3)		-
Reserve balance, September 30,	$	7	$	27