Investments (Tables)

3 Months Ended

Mar. 31, 2013

Schedule of available-for-sale securities distributed by type

	March 31, 2013
Description of Securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Noncredit OTTI(1)
	(in millions)
Fixed maturities:
Corporate debt securities	$	14,725	$	2,005	$	(10	)	$	16,720	$	2
Residential mortgage backed securities	3,419		210		(52		)	3,577		(21		)
Commercial mortgage backed securities	2,578		248		(1		)	2,825		—
State and municipal obligations	967		178		(28		)	1,117		—
Asset backed securities	797		72		(2		)	867		—
Foreign government bonds and obligations	184		30		—			214		—
U.S. government and agencies obligations	41		7		—			48		—
Total fixed maturities	22,711		2,750		(93		)	25,368		(19		)
Common stocks	2		2		—			4		1
Total	$	22,713	$	2,752	$	(93	)	$	25,372	$	(18	)

	December 31, 2012
Description of Securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Noncredit OTTI(1)
	(in millions)
Fixed maturities:
Corporate debt securities	$	14,881	$	2,167	$	(7	)	$	17,041	$	—
Residential mortgage backed securities	3,446		233		(58		)	3,621		(24		)
Commercial mortgage backed securities	2,717		287		—			3,004		—
State and municipal obligations	976		180		(34		)	1,122		—
Asset backed securities	808		66		(3		)	871		—
Foreign government bonds and obligations	188		36		—			224		—
U.S. government and agencies obligations	42		7		—			49		—
Total fixed maturities	23,058		2,976		(102		)	25,932		(24		)
Common stocks	2		2		—			4		1
Total	$	23,060	$	2,978	$	(102	)	$	25,936	$	(23	)

(1) Represents the amount of other-than-temporary impairment (“OTTI”) losses in accumulated other comprehensive income. Amount includes unrealized gains and losses on impaired securities subsequent to the initial impairment measurement date. These amounts are included in gross unrealized gains and losses as of the end of the period.

Schedule of fixed maturity securities by rating

	March 31, 2013						December 31, 2012
Ratings	Amortized Cost		Fair Value		Percent of Total Fair Value		Amortized Cost		Fair Value		Percent of Total Fair Value
	(in millions, except percentages)
AAA	$	5,405	$	5,846	23	%	$	5,680	$	6,198	24	%
AA	1,173		1,381		5		1,102		1,273		5
A	4,338		4,944		20		4,262		4,849		19
BBB	10,269		11,670		46		10,409		12,019		46
Below investment grade	1,526		1,527		6		1,605		1,593		6
Total fixed maturities	$	22,711	$	25,368	100	%	$	23,058	$	25,932	100	%

Schedule of available-for-sale securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position

	March 31, 2013
	Less than 12 months						12 months or more						Total
Description of Securities	Number of Securities	Fair Value		Unrealized Losses			Number of Securities	Fair Value		Unrealized Losses			Number of Securities	Fair Value		Unrealized Losses
	(in millions, except number of securities)
Corporate debt securities	50	$	546	$	(7	)	5	$	49	$	(3	)	55	$	595	$	(10	)
Residential mortgage backed securities	16	320		(5		)	51	250		(47		)	67	570		(52		)
State and municipal obligations	—	—		—			2	105		(28		)	2	105		(28		)
Asset backed securities	2	12		—			4	59		(2		)	6	71		(2		)
Commercial mortgage backed securities	6	48		(1		)	—	—		—			6	48		(1		)
Total	74	$	926	$	(13	)	62	$	463	$	(80	)	136	$	1,389	$	(93	)

	December 31, 2012
	Less than 12 months						12 months or more						Total
Description of Securities	Number of Securities	Fair Value		Unrealized Losses			Number of Securities	Fair Value		Unrealized Losses			Number of Securities	Fair Value		Unrealized Losses
	(in millions, except number of securities)
Corporate debt securities	50	$	477	$	(4	)	6	$	70	$	(3	)	56	$	547	$	(7	)
Residential mortgage backed securities	6	107		—			56	293		(58		)	62	400		(58		)
State and municipal obligations	—	—		—			2	100		(34		)	2	100		(34		)
Asset backed securities	1	10		—			5	86		(3		)	6	96		(3		)
Total	57	$	594	$	(4	)	69	$	549	$	(98	)	126	$	1,143	$	(102	)

Schedule of rollforward of the cumulative amounts recognized in the consolidated statements of income for other-than-temporary impairments related to credit losses

	Three Months Ended March 31,
	2013			2012
	(in millions)
Beginning balance	$	87		$	106
Credit losses for which an other-than-temporary impairment was previously recognized	1			1
Reductions for securities sold during the period (realized)	(13		)	(2		)
Ending balance	$	75		$	105

Other Comprehensive Income Available-for-Sale Securities Disclosure

	Net Unrealized Securities Gains			Deferred Income Tax			Accumulated Other Comprehensive Income Related to Net Unrealized Securities Gains
	(in millions)
Balance at January 1, 2012	$	1,472		$	(515	)	$	957
Net unrealized securities gains arising during the period(1)	65			(23		)	42
Reclassification of net securities gains included in net income	(3		)	1			(2		)
Impact on DAC, DSIC, benefit reserves and reinsurance recoverables	(5		)	2			(3		)
Balance at March 31, 2012	$	1,529		$	(535	)	$	994	(2)

Balance at January 1, 2013	$	1,930		$	(675	)	$	1,255
Net unrealized securities losses arising during the period(1)	(217		)	76			(141		)
Reclassification of net securities losses included in net income	1			(1		)	—
Impact on DAC, DSIC, benefit reserves and reinsurance recoverables	98			(34		)	64
Balance at March 31, 2013	$	1,812		$	(634	)	$	1,178	(2)

(1) Includes other-than-temporary impairment losses on Available-for-Sale securities related to factors other than credit that were recognized in other comprehensive income during the period.

(2) Includes $(12) million and $(18) million of noncredit related impairments on securities and net unrealized securities losses on previously impaired securities at March 31, 2013 and 2012, respectively.

Schedule of net realized gains and losses on available-for-sale securities

	Three Months Ended March 31,
	2013			2012
	(in millions)
Gross realized investment gains	$	—		$	4
Other-than-temporary impairments	(1		)	(1		)
Total	$	(1	)	$	3

Schedule of available-for-sale securities by contractual maturity

	Amortized Cost		Fair Value
	(in millions)
Due within one year	$	1,547	$	1,581
Due after one year through five years	4,099		4,437
Due after five years through 10 years	6,716		7,627
Due after 10 years	3,555		4,454
	15,917		18,099
Residential mortgage backed securities	3,419		3,577
Commercial mortgage backed securities	2,578		2,825
Asset backed securities	797		867
Common stocks	2		4
Total	$	22,713	$	25,372

Schedule of net investment income

	Three Months Ended March 31,
	2013		2012
	(in millions)
Income on fixed maturities	$	309	$	342
Income on mortgage loans	51		35
Other investments	6		6
	366		383
Less: investment expenses	8		6
Total	$	358	$	377

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

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-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27290-111563

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-Subparagraph a, b

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef

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Reference 6: http://www.xbrl.org/2003/role/presentationRef

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+ Details

- Definition

Tabular disclosure of investment income derived from investments in debt and equity securities consisting of interest income earned from investments in debt securities and on cash and cash equivalents, dividend income from investments in equity securities, and income or expense derived from the amortization of investment related discounts or premiums, respectively. This item does not include realized or unrealized gains or losses on the sale or holding of investments in debt and equity securities required to be included in earnings for the period or for other than temporary losses related to investments in debt and equity securities which are included in realized losses in the period recognized.

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- Definition

Tabular disclosure of the amount of other than temporary impairment (OTTI) related to credit losses recognized in earnings including: (a) the beginning balance of the amount related to credit losses on debt securities held by the investor at the beginning of the period for which a portion of an OTTI was recognized in other comprehensive income; (b) additions for the amount related to the credit loss for which an OTTI was not previously recognized; (c) reductions for securities sold during the period (realized); (d) reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the investor intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis; (e) additional increases to the amount related to the credit loss for which an OTTI was previously recognized when the investor does not intend to sell the security and it is not more likely than not that the investor will be required to sell the security before recovery of its amortized cost basis; (f) reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security; and (g) the ending balance of the amount related to credit losses on debt securities held by the entity at the end of the period for which a portion of an OTTI was recognized in other comprehensive income.

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