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Investments (Tables)
 12 Months Ended
Dec. 31, 2013
Investments, Debt and Equity Securities [Abstract]  
Schedule Of Amortized Cost And Fair Value Of Fixed Maturities And Related OTTI Recognized In AOCI
December 31, 2013
Amortized
Cost

 
Gross
Unrealized
Appreciation

 
Gross
Unrealized
Depreciation

 
Fair
Value

 
OTTI Recognized
in AOCI

(in millions of U.S. dollars)
 
 
 
 
Available for sale
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
2,946

 
$
62

 
$
(59
)
 
$
2,949

 
$
—

Foreign
14,336

 
377

 
(122
)
 
14,591

 
—

Corporate securities
16,825

 
777

 
(132
)
 
17,470

 
(6
)
Mortgage-backed securities
10,937

 
184

 
(227
)
 
10,894

 
(34
)
States, municipalities, and political subdivisions
3,362

 
65

 
(77
)
 
3,350

 
—

 
$
48,406

 
$
1,465

 
$
(617
)
 
$
49,254

 
$
(40
)
Held to maturity
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency
$
820

 
$
16

 
$
(4
)
 
$
832

 
$
—

Foreign
864

 
33

 
—

 
897

 
—

Corporate securities
1,922

 
83

 
—

 
2,005

 
—

Mortgage-backed securities
1,341

 
39

 
(1
)
 
1,379

 
—

States, municipalities, and political subdivisions
1,151

 
16

 
(17
)
 
1,150

 
—

 
$
6,098

 
$
187

 
$
(22
)
 
$
6,263

 
$
—
Schedule Of Fixed Maturities By Contractual Maturity
The following table presents fixed maturities by contractual maturity:
 
December 31
 
 
December 31
 
 
 
 
2013

 
 
 
2012

(in millions of U.S. dollars)
Amortized Cost

 
Fair Value

 
Amortized Cost

 
Fair Value

Available for sale
 
 
 
 
 
 
 
Due in 1 year or less
$
2,387

 
$
2,411

 
$
1,887

 
$
1,906

Due after 1 year through 5 years
14,139

 
14,602

 
13,411

 
14,010

Due after 5 years through 10 years
16,200

 
16,535

 
15,032

 
16,153

Due after 10 years
4,743

 
4,812

 
4,285

 
4,764

 
37,469

 
38,360

 
34,615

 
36,833

Mortgage-backed securities
10,937

 
10,894

 
10,051

 
10,473

 
$
48,406

 
$
49,254

 
$
44,666

 
$
47,306

Held to maturity
 
 
 
 
 
 
 
Due in 1 year or less
$
401

 
$
405

 
$
656

 
$
659

Due after 1 year through 5 years
2,284

 
2,363

 
1,870

 
1,950

Due after 5 years through 10 years
1,686

 
1,723

 
2,119

 
2,267

Due after 10 years
386

 
393

 
597

 
641

 
4,757

 
4,884

 
5,242

 
5,517

Mortgage-backed securities
1,341

 
1,379

 
2,028

 
2,116

 
$
6,098

 
$
6,263

 
$
7,270

 
$
7,633
Schedule Of Cost And Fair Value Of Equity Securities
 
December 31


December 31

(in millions of U.S. dollars)
2013


2012

Cost
$
841

 
$
707

Gross unrealized appreciation
63

 
41

Gross unrealized depreciation
(67
)
 
(4
)
Fair value
$
837

 
$
744
Schedule Of Default Assumptions By Moody's Rating Category
The following table presents default assumptions by Moody's rating category (historical mean default rate provided for comparison):
Moody's Rating Category
1-in-100 Year Default Rate

 
Historical Mean Default Rate

Investment Grade:
 
 
 
Aaa-Baa
0.0-1.4%

 
0.0-0.3%

Below Investment Grade:
 
 
 
Ba
4.9
%
 
1.1
%
B
12.8
%
 
3.4
%
Caa-C
53.2
%
 
13.8
%
Schedule Of Significant Assumptions For Future Cash Flows For Mortgage Backed Securities

Schedule Of Net Realized Gains (Losses) And The Losses Included In Net Realized Gains (Losses) And OCI
The following table presents the Net realized gains (losses) and the losses included in Net realized gains (losses) and OCI as a result of conditions which caused us to conclude the decline in fair value of certain investments was “other-than-temporary” and the change in net unrealized appreciation (depreciation) of investments: 
 
Years Ended December 31
 
(in millions of U.S. dollars)
2013

 
2012

 
2011

Fixed maturities:
 
 
 
 
 
OTTI on fixed maturities, gross
$
(18
)
 
$
(26
)
 
$
(61
)
OTTI on fixed maturities recognized in OCI (pre-tax)
—

 
1

 
15

OTTI on fixed maturities, net
(18
)
 
(25
)
 
(46
)
Gross realized gains excluding OTTI
237

 
388

 
410

Gross realized losses excluding OTTI
(129
)
 
(133
)
 
(200
)
Total fixed maturities
90

 
230

 
164

Equity securities:
 
 
 
 
 
OTTI on equity securities
(2
)
 
(5
)
 
(1
)
Gross realized gains excluding OTTI
21

 
11

 
15

Gross realized losses excluding OTTI
(4
)
 
(2
)
 
(5
)
Total equity securities
15

 
4

 
9

OTTI on other investments
(2
)
 
(7
)
 
(3
)
Foreign exchange gains (losses)
29

 
(16
)
 
(13
)
Investment and embedded derivative instruments
78

 
(6
)
 
(143
)
Fair value adjustments on insurance derivative
878

 
171

 
(779
)
S&P put options and futures
(579
)
 
(297
)
 
(4
)
Other derivative instruments
(2
)
 
(4
)
 
(4
)
Other
(3
)
 
3

 
(22
)
Net realized gains (losses)
504

 
78

 
(795
)
Change in net unrealized appreciation (depreciation) on investments:
 
 
 
 
 
Fixed maturities available for sale
(1,798
)
 
1,099

 
569

Fixed maturities held to maturity
(82
)
 
(94
)
 
(89
)
Equity securities
(41
)
 
61

 
(47
)
Other
54

 
50

 
40

Income tax (expense) benefit
408

 
(198
)
 
(157
)
Change in net unrealized appreciation (depreciation) on investments
(1,459
)
 
918

 
316

Total net realized gains (losses) and change in net unrealized appreciation (depreciation) on investments
$
(955
)
 
$
996

 
$
(479
)
Schedule Of Roll-Forward Of Pre-Tax Credit Losses Related To Fixed Maturities For Which A Portion Of OTTI Was Recognized In OCI
The following table presents a roll-forward of pre-tax credit losses related to fixed maturities for which a portion of OTTI was recognized in OCI: 
 
Years Ended December 31
 
(in millions of U.S. dollars)
2013

 
2012

 
2011

Balance of credit losses related to securities still held – beginning of year
$
43

 
$
74

 
$
137

Additions where no OTTI was previously recorded
9

 
8

 
12

Additions where an OTTI was previously recorded
3

 
12

 
8

Reductions for securities sold during the period
(18
)
 
(51
)
 
(83
)
Balance of credit losses related to securities still held – end of year
$
37

 
$
43

 
$
74
Schedule Of Other Investments
 
 
 
December 31

 
 
 
December 31

 
 
 
2013

 
 
 
2012

(in millions of U.S. dollars)
Fair Value

 
Cost

 
Fair Value

 
Cost

Investment funds
$
428

 
$
278

 
$
395

 
$
278

Limited partnerships
576

 
424

 
531

 
398

Partially-owned investment companies
1,284

 
1,284

 
1,186

 
1,187

Life insurance policies
180

 
180

 
148

 
148

Policy loans
179

 
179

 
164

 
164

Trading securities
276

 
273

 
243

 
242

Other
53

 
53

 
49

 
48

Total
$
2,976

 
$
2,671

 
$
2,716

 
$
2,465
Schedule Of Partially Owned Insurance Companies
 
December 31
 
 
December 31
 
 
 
 
2013
 
 
2012
 
 
 
(in millions of U.S. dollars, except percentages)
Carrying Value

 
Issued
 Share
Capital

 
Ownership Percentage

 
Carrying Value

 
Issued Share Capital

 
Ownership Percentage

 
Domicile
Huatai Group
$
365

 
$
631

 
20.0
%
 
$
350

 
$
474

 
20.0
%
 
China
Huatai Life Insurance Company
84

 
379

 
20.0
%
 
84

 
205

 
20.0
%
 
China
Freisenbruch-Meyer
9

 
5

 
40.0
%
 
9

 
5

 
40.0
%
 
Bermuda
ACE Cooperative Insurance Co. – Saudi Arabia
10

 
27

 
30.0
%
 
9

 
27

 
30.0
%
 
Saudi Arabia
Russian Reinsurance Company
2

 
4

 
23.3
%
 
2

 
4

 
23.3
%
 
Russia
Total
$
470

 
$
1,046

 
 
 
$
454

 
$
715

 
 
 
 
Schedule Of Aggregate Fair Value And Gross Unrealized Loss By Length Of Time The Security Has Continuously Been In An Unrealized Loss Position
The following tables present, for all securities in an unrealized loss position (including securities on loan), the aggregate fair value and gross unrealized loss by length of time the security has continuously been in an unrealized loss position:
 
0 – 12 Months
 
 
Over 12 Months
 
 
Total
 
December 31, 2013
Fair Value

 
Gross
Unrealized Loss

 
Fair Value

 
Gross
Unrealized Loss

 
Fair Value

 
Gross
Unrealized Loss

(in millions of U.S. dollars)
 
 
 
 
 
U.S. Treasury and agency
$
1,794

 
$
(57
)
 
$
31

 
$
(6
)
 
$
1,825

 
$
(63
)
Foreign
4,621

 
(114
)
 
201

 
(8
)
 
4,822

 
(122
)
Corporate securities
3,836

 
(118
)
 
194

 
(14
)
 
4,030

 
(132
)
Mortgage-backed securities
5,248

 
(197
)
 
384

 
(31
)
 
5,632

 
(228
)
States, municipalities, and political subdivisions
2,164

 
(90
)
 
84

 
(4
)
 
2,248

 
(94
)
Total fixed maturities
17,663

 
(576
)
 
894

 
(63
)
 
18,557

 
(639
)
Equity securities
498

 
(67
)
 
—

 
—

 
498

 
(67
)
Other investments
67

 
(9
)
 
—

 
—

 
67

 
(9
)
Total
$
18,228

 
$
(652
)
 
$
894

 
$
(63
)
 
$
19,122

 
$
(715
)
 
 
0 – 12 Months
 
 
Over 12 Months
 
 
Total
 
December 31, 2012
Fair Value

 
Gross
Unrealized Loss

 
Fair Value

 
Gross
Unrealized Loss

 
Fair Value

 
Gross
Unrealized Loss

(in millions of U.S. dollars)
 
 
 
 
 
U.S. Treasury and agency
$
440

 
$
(1
)
 
$
—

 
$
—

 
$
440

 
$
(1
)
Foreign
1,234

 
(8
)
 
88

 
(6
)
 
1,322

 
(14
)
Corporate securities
1,026

 
(23
)
 
85

 
(8
)
 
1,111

 
(31
)
Mortgage-backed securities
855

 
(4
)
 
356

 
(32
)
 
1,211

 
(36
)
States, municipalities, and political subdivisions
316

 
(3
)
 
48

 
(4
)
 
364

 
(7
)
Total fixed maturities
3,871

 
(39
)
 
577

 
(50
)
 
4,448

 
(89
)
Equity securities
29

 
(4
)
 
—

 
—

 
29

 
(4
)
Other investments
68

 
(5
)
 
—

 
—

 
68

 
(5
)
Total
$
3,968

 
$
(48
)
 
$
577

 
$
(50
)
 
$
4,545

 
$
(98
)
Schedule Of Sources Of Net Investment Income
 
Years Ended December 31
 
(in millions of U.S. dollars)
2013

 
2012

 
2011

Fixed maturities
$
2,093

 
$
2,134

 
$
2,196

Short-term investments
29

 
28

 
43

Equity securities
37

 
34

 
36

Other
105

 
104

 
62

Gross investment income
2,264

 
2,300

 
2,337

Investment expenses
(120
)
 
(119
)
 
(95
)
Net investment income
$
2,144

 
$
2,181

 
$
2,242
Schedule Of Components Of Restricted Assets
The following table presents the components of restricted assets: 
 
December 31

 
December 31

(in millions of U.S. dollars)
2013

 
2012

Trust funds
$
11,315

 
$
11,389

Deposits with non-U.S. regulatory authorities
1,970

 
2,133

Assets pledged under repurchase agreements
1,435

 
1,401

Deposits with U.S. regulatory authorities
1,334

 
1,338

Other pledged assets
391

 
456

 
$
16,445

 
$
16,717