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Investments
 9 Months Ended
Sep. 30, 2013
Investments [Abstract]  
Investments [Text Block]
Investments
A summary of short-term and long-term investments by major security type is as follows:
(in millions)
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
September 30, 2013
 
 
 
 
 
 
 
 
Debt securities - available-for-sale:
 
 
 
 
 
 
 
 
U.S. government and agency obligations
 
$
2,466

 
$
11

 
$
(12
)
 
$
2,465

State and municipal obligations
 
6,626

 
181

 
(57
)
 
6,750

Corporate obligations
 
7,543

 
144

 
(53
)
 
7,634

U.S. agency mortgage-backed securities
 
2,028

 
30

 
(38
)
 
2,020

Non-U.S. agency mortgage-backed securities
 
660

 
15

 
(8
)
 
667

Total debt securities - available-for-sale
 
19,323

 
381

 
(168
)
 
19,536

Equity securities - available-for-sale
 
817

 
4

 
(13
)
 
808

Debt securities - held-to-maturity:
 
 
 
 
 
 
 
 
U.S. government and agency obligations
 
179

 
3

 
—

 
182

State and municipal obligations
 
28

 
—

 
—

 
28

Corporate obligations
 
665

 
—

 
—

 
665

Total debt securities - held-to-maturity
 
872

 
3

 
—

 
875

Total investments
 
$
21,012

 
$
388

 
$
(181
)
 
$
21,219

December 31, 2012
 
 
 
 
 
 
 
 
Debt securities - available-for-sale:
 
 
 
 
 
 
 
 
U.S. government and agency obligations
 
$
2,501

 
$
38

 
$
(1
)
 
$
2,538

State and municipal obligations
 
6,282

 
388

 
(3
)
 
6,667

Corporate obligations
 
6,930

 
283

 
(4
)
 
7,209

U.S. agency mortgage-backed securities
 
2,168

 
70

 
—

 
2,238

Non-U.S. agency mortgage-backed securities
 
538

 
36

 
—

 
574

Total debt securities - available-for-sale
 
18,419

 
815

 
(8
)
 
19,226

Equity securities - available-for-sale
 
668

 
10

 
(1
)
 
677

Debt securities - held-to-maturity:
 
 
 
 
 
 
 
 
U.S. government and agency obligations
 
168

 
6

 
—

 
174

State and municipal obligations
 
30

 
—

 
—

 
30

Corporate obligations
 
641

 
2

 
—

 
643

Total debt securities - held-to-maturity
 
839

 
8

 
—

 
847

Total investments
 
$
19,926

 
$
833

 
$
(9
)
 
$
20,750




The fair values of the Company’s mortgage-backed securities by credit rating (when multiple credit ratings are available for an individual security, the average of the available ratings is used) and origination date as of September 30, 2013 were as follows:
(in millions)
 
AAA
 
AA
 
Non-Investment
Grade
 
Total Fair
Value
2013
 
$
74

 
$
—

 
$
—

 
$
74

2012
 
109

 
—

 
—

 
109

2011
 
20

 
—

 
—

 
20

2010
 
9

 
—

 
—

 
9

2009
 
13

 
—

 
—

 
13

2007
 
78

 
—

 
2

 
80

Pre - 2007
 
349

 
3

 
10

 
362

U.S. agency mortgage-backed securities
 
2,020

 
—

 
—

 
2,020

Total
 
$
2,672

 
$
3

 
$
12

 
$
2,687


The Company includes any securities backed by Alt-A or sub-prime mortgages and any commercial mortgage loans in default in the non-investment grade column in the table above.
The amortized cost and fair value of available-for-sale debt securities as of September 30, 2013, by contractual maturity, were as follows:
(in millions)
 
Amortized
Cost
 
Fair
Value
Due in one year or less
 
$
2,540

 
$
2,553

Due after one year through five years
 
7,219

 
7,351

Due after five years through ten years
 
4,945

 
5,008

Due after ten years
 
1,931

 
1,937

U.S. agency mortgage-backed securities
 
2,028

 
2,020

Non-U.S. agency mortgage-backed securities
 
660

 
667

Total debt securities - available-for-sale
 
$
19,323

 
$
19,536


The amortized cost and fair value of held-to-maturity debt securities as of September 30, 2013, by contractual maturity, were as follows:
(in millions)
 
Amortized
Cost
 
Fair
Value
Due in one year or less
 
$
445

 
$
445

Due after one year through five years
 
155

 
155

Due after five years through ten years
 
136

 
138

Due after ten years
 
136

 
137

Total debt securities - held-to-maturity
 
$
872

 
$
875


The fair value of available-for-sale investments with gross unrealized losses by major security type and length of time that individual securities have been in a continuous unrealized loss position were as follows:
 
 
Less Than 12 Months
and in Total
(in millions)
 
Fair
Value
 
Gross
Unrealized
Losses
September 30, 2013
 
 
 
 
Debt securities - available-for-sale:
 
 
 
 
U.S. government and agency obligations
 
$
676

 
$
(12
)
State and municipal obligations
 
2,114

 
(57
)
Corporate obligations
 
2,730

 
(53
)
U.S. agency mortgage-backed securities
 
927

 
(38
)
Non-U.S. agency mortgage-backed securities
 
332

 
(8
)
Total debt securities - available-for-sale
 
$
6,779

 
$
(168
)
Equity securities - available-for-sale
 
$
137

 
$
(13
)
December 31, 2012
 
 
 
 
Debt securities - available-for-sale:
 
 
 
 
U.S. government and agency obligations
 
$
183

 
$
(1
)
State and municipal obligations
 
362

 
(3
)
Corporate obligations
 
695

 
(4
)
Total debt securities - available-for-sale
 
$
1,240

 
$
(8
)
Equity securities - available-for-sale
 
$
13

 
$
(1
)

The unrealized losses from all securities as of September 30, 2013 were generated from approximately 5,800 positions out of a total of 19,500 positions. The Company believes that it will collect the principal and interest due on its investments that have an amortized cost in excess of fair value. The unrealized losses were primarily caused by interest rate increases and not by unfavorable changes in the credit ratings associated with these securities. At each reporting period, the Company evaluates securities for impairment when the fair value of the investment is less than its amortized cost. The Company evaluated the underlying credit quality and credit ratings of the issuers, noting neither a significant deterioration since purchase nor other factors leading to an other-than-temporary impairment (OTTI). Therefore, the Company believes these losses to be temporary. As of September 30, 2013, the Company did not have the intent to sell any of the securities in an unrealized loss position.
A portion of the Company’s investments in equity securities and venture capital funds consists of investments held in various public and nonpublic companies concentrated in the areas of health care services and related information technologies. Market conditions that affect the value of health care and related technology stocks will likewise impact the value of the Company’s equity portfolio. The equity securities and venture capital funds were evaluated for severity and duration of unrealized loss, overall market volatility and other market factors.
Net realized gains reclassified out of accumulated other comprehensive income were from the following sources:
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(in millions)
 
2013
 
2012
 
2013
 
2012
Total OTTI
 
$
(3
)
 
$
—

 
$
(7
)
 
$
(4
)
Portion of loss recognized in other comprehensive income
 
—

 
—

 
—

 
—

Net OTTI recognized in earnings
 
(3
)
 
—

 
(7
)
 
(4
)
Gross realized losses from sales
 
—

 
(2
)
 
(3
)
 
(5
)
Gross realized gains from sales
 
34

 
22

 
147

 
118

Net realized gains (included in Investment and Other Income on the Condensed Consolidated Statements of Operations)
 
31

 
20

 
137

 
109

Income tax effect (included in Provision for Income Taxes on the Condensed Consolidated Statements of Operations)
 
(11
)
 
(7
)
 
(50
)
 
(40
)
Realized gains, net of taxes
 
$
20

 
$
13

 
$
87

 
$
69