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Investments (Tables)

6 Months Ended

Jun. 30, 2013

Available-for-Sale Securities Disclosure

	June 30, 2013
Description of Securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Noncredit OTTI(1)
	(in millions)
Fixed maturities:
Corporate debt securities	$	14,654	$	1,431	$	(80	)	$	16,005	$	2
Residential mortgage backed securities	3,529		158		(82		)	3,605		(20		)
Commercial mortgage backed securities	2,453		177		(9		)	2,621		—
State and municipal obligations	942		109		(29		)	1,022		—
Asset backed securities	808		54		(4		)	858		—
Foreign government bonds and obligations	241		18		(5		)	254		—
U.S. government and agencies obligations	40		6		—			46		—
Total fixed maturities	22,667		1,953		(209		)	24,411		(18		)
Common stocks	2		3		—			5		2
Total	$	22,669	$	1,956	$	(209	)	$	24,416	$	(16	)

	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.

Investments with Fixed Maturities Disclosure

	June 30, 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	$	5,387	$	5,666	23	%	$	5,680	$	6,198	24	%
AA	1,149		1,286		5		1,102		1,273		5
A	4,299		4,710		19		4,262		4,849		19
BBB	10,208		11,164		46		10,409		12,019		46
Below investment grade	1,624		1,585		7		1,605		1,593		6
Total fixed maturities	$	22,667	$	24,411	100	%	$	23,058	$	25,932	100	%

Available-for-Sale Securities Continuous Unrealized Loss Disclosure

	June 30, 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	149	$	2,033	$	(74	)	3	$	41	$	(6	)	152	$	2,074	$	(80	)
Residential mortgage backed securities	36	917		(37		)	48	234		(45		)	84	1,151		(82		)
Commercial mortgage backed securities	20	198		(9		)	—	—		—			20	198		(9		)
State and municipal obligations	—	—		—			2	100		(29		)	2	100		(29		)
Asset backed securities	9	100		(3		)	3	21		(1		)	12	121		(4		)
Foreign government bonds and obligations	25	93		(5		)	—	—		—			25	93		(5		)
Total	239	$	3,341	$	(128	)	56	$	396	$	(81	)	295	$	3,737	$	(209	)

	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	)

Credit Losses on Available-for-Sale Securities Disclosure

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
	(in millions)
Beginning balance	$	75		$	105		$	87		$	106
Credit losses for which an other-than-temporary impairment was not previously recognized	—			1			—			1
Credit losses for which an other-than-temporary impairment was previously recognized	1			5			2			6
Reductions for securities sold during the period (realized)	(10		)	(21		)	(23		)	(23		)
Ending balance	$	66		$	90		$	66		$	90

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)	272			(95		)	177
Impact on DAC, DSIC, benefit reserves and reinsurance recoverables	(95		)	33			(62		)
Balance at June 30, 2012	$	1,649		$	(577	)	$	1,072	(2)

Balance at January 1, 2013	$	1,930		$	(675	)	$	1,255
Net unrealized securities losses arising during the period(1)	(1,129		)	385			(744		)
Reclassification of net securities losses included in net income	1			—			1
Impact on DAC, DSIC, benefit reserves and reinsurance recoverables	407			(142		)	265
Balance at June 30, 2013	$	1,209		$	(432	)	$	777	(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 (loss) during the period.

(2) Includes $(9) million and $(20) million of noncredit related impairments on securities and net unrealized securities losses on previously impaired securities at June 30, 2013 and 2012, respectively.

Available-for-Sale Securities Recognized in Earnings Disclosure

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
	(in millions)
Gross realized investment gains	$	2		$	4		$	2		$	8
Gross realized investment losses	(1		)	(1		)	(1		)	(1		)
Other-than-temporary impairments	(1		)	(6		)	(2		)	(7		)
Total	$	—		$	(3	)	$	(1	)	$	—

Available-for-Sale Securities Contractual Maturity Disclosure

	Amortized Cost		Fair Value
	(in millions)
Due within one year	$	1,293	$	1,320
Due after one year through five years	4,387		4,700
Due after five years through 10 years	6,664		7,189
Due after 10 years	3,533		4,118
	15,877		17,327
Residential mortgage backed securities	3,529		3,605
Commercial mortgage backed securities	2,453		2,621
Asset backed securities	808		858
Common stocks	2		5
Total	$	22,669	$	24,416

Schedule of Net Investment Income

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
	(in millions)
Income on fixed maturities	$	303	$	338	$	612	$	680
Income on mortgage loans	52		38		103		73
Other investments	11		7		17		13
	366		383		732		766
Less: investment expenses	7		6		15		12
Total	$	359	$	377	$	717	$	754

- 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 Emerging Issues Task Force (EITF)

-Number 03-1

-Paragraph 21

-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 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 320

-SubTopic 10

-Section 50

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-Name Accounting Standards Codification

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

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-Publisher FASB

-Name Accounting Standards Codification

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Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 115

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-Subparagraph a, b

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- 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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