Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2012

Fair Value Measurements [Abstract]

Financial Instruments Measured At Fair Value On A Recurring Basis

	Level 1			Level 2		Level 3			Total
	(in millions of U.S. dollars)
March 31, 2012
Assets:
Fixed maturities available for sale
U.S. Treasury and agency	$	1,762		$	1,379	$	—		$	3,141
Foreign		203			12,634		49			12,886
Corporate securities		23			15,124		117			15,264
Mortgage-backed securities		—			9,997		19			10,016
States, municipalities, and political subdivisions		—			2,160		1			2,161
		1,988			41,294		186			43,468
Equity securities		669			—		10			679
Short-term investments		1,344			755		—			2,099
Other investments		236			239		1,954			2,429
Securities lending collateral		—			2,204		—			2,204
Investment derivative instruments		12			—		—			12
Other derivative instruments		(78	)		37		(1	)		(42	)
Separate account assets		764			56		—			820
Total assets measured at fair value	$	4,935		$	44,585	$	2,149		$	51,669
Liabilities:
GLB(1)	$	—		$	—	$	863		$	863

⁽¹⁾ Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information.

	Level 1			Level 2		Level 3		Total
	(in millions of U.S. dollars)
December 31, 2011
Assets:
Fixed maturities available for sale
U.S. Treasury and agency	$	1,691		$	1,264	$	5	$	2,960
Foreign		212			12,156		33		12,401
Corporate securities		20			14,539		134		14,693
Mortgage-backed securities		—			10,173		28		10,201
States, municipalities, and political subdivisions		—			1,711		1		1,712
		1,923			39,843		201		41,967
Equity securities		632			2		13		647
Short-term investments		1,246			1,055		—		2,301
Other investments		208			229		1,877		2,314
Securities lending collateral		—			1,375		—		1,375
Investment derivative instruments		10			—		—		10
Other derivative instruments		(16	)		54		3		41
Separate account assets		607			53		—		660
Total assets measured at fair value	$	4,610		$	42,611	$	2,094	$	49,315
Liabilities:
GLB(1)	$	—		$	—	$	1,319	$	1,319

⁽¹⁾ Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information.

Fair Value And Maximum Future Funding Commitments Related To Investments

	Expected Liquidation Period		March 31, 2012				December 31, 2011
			Fair Value		Maximum Future Funding Commitments		Fair Value		Maximum Future Funding Commitments
			(in millions of U.S. dollars)
Financial		5 to 9 Years	$	207	$	135	$	205	$	141
Real estate		3 to 9 Years		282		147		270		96
Distressed		6 to 9 Years		189		52		182		57
Mezzanine		6 to 9 Years		227		337		195		282
Traditional		3 to 8 Years		579		525		565		200
Vintage		1 to 3 Years		18		1		18		1
Investment funds		Not Applicable		383		—		378		—
			$	1,885	$	1,197	$	1,813	$	777

Schedule Of Significant Unobservable Inputs Used In Level 3 Liability Valuations

(in millions of U.S. dollars)	Fair Value at March 31, 2012		Valuation Technique		Significant Unobservable Inputs		Ranges
GLB(1)	$	863		Actuarial model		Lapse rate		1%- 30%
						Annuitization rate		0%- 50%

⁽¹⁾ Discussion of the most significant inputs used in the fair value measurement of GLB and the sensitivity of those assumptions is included within Note 4 a) Guaranteed living benefits.

Financial Instruments Measured At Fair Value Using Significant Unobservable Inputs

	Three Months Ended March 31, 2012
	Assets																							Liabilities
	Available-for-Sale Debt Securities														Equity securities			Other investments			Other derivative instruments			GLB(1)
	U.S. Treasury and Agency			Foreign			Corporate securities			MBS			States, municipalities, and political subdivisions
				(in millions of U.S. dollars)
Balance-Beginning of Period	$	5		$	33		$	134		$	28		$	1	$	13		$	1,877		$	3		$	1,319
Transfers out of Level 3		(5	)		(1	)		(7	)		(12	)		—		—			—			—			—
Change in Net Unrealized Gains (Losses) included in OCI		—			—			2			—			—		1			9			—			—
Net Realized Gains/Losses		—			—			—			—			—		—			(2	)		(3	)		(456	)
Purchases		—			34			3			4			—		1			113			—			—
Sales		—			(17	)		(8	)		—			—		(5	)		(2	)		—			—
Settlements		—			—			(7	)		(1	)		—		—			(41	)		(1	)		—
Balance-End of Period	$	—		$	49		$	117		$	19		$	1	$	10		$	1,954		$	(1	)	$	863
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date	$	—		$	—		$	—		$	—		$	—	$	—		$	(2	)	$	(3	)	$	(456	)

⁽¹⁾ Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as future policy benefits in the consolidated balance sheets. Refer to Note 5 for additional information.

	Three Months Ended March 31, 2011
	Assets																				Liabilities
	Available-for-Sale Debt Securities												Equity securities			Other investments		Other derivative instruments			GLB(1)
	Foreign			Corporate securities			MBS			States, municipalities, and political subdivisions
	(in millions of U.S. dollars)
Balance-Beginning of Period	$	26		$	115		$	39		$	2		$	13		$	1,432	$	4		$	507
Transfers into Level 3		4			5			1			—			—			—		—			—
Transfers out of Level 3		(1	)		(4	)		—			—			—			—		—			—
Change in Net Unrealized Gains (Losses) included in OCI		(1	)		1			—			—			(1	)		42		—			—
Net Realized Gains/Losses		—			(1	)		—			—			2			—		1			(58	)
Purchases		—			19			46			—			—			90		—			—
Sales		(1	)		(19	)		(3	)		—			(4	)		—		—			—
Settlements		(1	)		(3	)		(2	)		(1	)		—			—		(1	)		—
Balance-End of Period	$	26		$	113		$	81		$	1		$	10		$	1,564	$	4		$	449
Net Realized Gains/Losses Attributable to Changes in Fair Value at the Balance Sheet Date	$	—		$	—		$	—		$	—		$	—		$	—	$	1		$	(58	)

⁽¹⁾  Our GLB reinsurance product meets the definition of a derivative instrument for accounting purposes and is accordingly carried at fair value. Excluded from the table above is the portion of the GLB derivative liability classified as Future policy benefits in the consolidated balance sheets. The liability for GLB reinsurance was $596 million at March 31, 2011, and $648 million at December 31, 2010, which includes a fair value derivative adjustment of $449 million and $507 million, respectively.

Carrying Values And Fair Values Of Financial Instruments Not Measured At Fair Value

	March 31, 2012				December 31, 2011
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(in millions of U.S. dollars)
Assets:
Fixed maturities held to maturity
U.S. Treasury and agency	$	1,081	$	1,121	$	1,078	$	1,126
Foreign		941		955		935		930
Corporate securities		2,298		2,354		2,338		2,337
Mortgage-backed securities		2,693		2,784		2,949		3,036
States, municipalities, and political subdivisions		1,104		1,134		1,147		1,176
		8,117		8,348		8,447		8,605
Partially-owned insurance companies		346		346		352		352
Total assets		8,463		8,694		8,799		8,957
Liabilities:
Short-term debt		1,531		1,531		1,251		1,251
Long-term debt		3,360		3,878		3,360		3,823
Trust preferred securities		309		404		309		404
Total liabilities	$	5,200	$	5,813	$	4,920	$	5,478

Financial Instruments Not Carried At Fair Value

	Level 1		Level 2		Level 3		Total
	(in millions of U.S. dollars)
March 31, 2012
Assets:
Fixed maturities held to maturity
U.S. Treasury and agency	$	570	$	551	$	—	$	1,121
Foreign		—		955		—		955
Corporate securities		—		2,338		16		2,354
Mortgage-backed securities		—		2,784		—		2,784
States, municipalities, and political subdivisions		—		1,134		—		1,134
		570		7,762		16		8,348
Partially-owned insurance companies		—		—		346		346
Total assets		570		7,762		362		8,694
Liabilities:
Short-term debt		—		1,531		—		1,531
Long-term debt		—		3,878		—		3,878
Trust preferred securities		—		404		—		404
Total liabilities	$	—	$	5,813	$	—	$	5,813