CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Revenues
Property-liability insurance premiums	$ 6,457	$ 6,513	$ 12,905	$ 13,016
Life and annuity premiums and contract charges	547	545	1,116	1,089
Net investment income	1,020	1,049	2,002	2,099
Realized capital gains and losses:
Total other-than-temporary impairment losses	(82)	(288)	(238)	(538)
Portion of loss recognized in other comprehensive income	(4)	(18)	(31)	(23)
Net other-than-temporary impairment losses recognized in earnings	(86)	(306)	(269)	(561)
Sales and other realized capital gains and losses	143	(145)	422	(238)
Total realized capital gains and losses	57	(451)	153	(799)
Total revenues	8,081	7,656	16,176	15,405
Costs and expenses
Property-liability insurance claims and claims expense	6,355	4,714	10,831	9,506
Life and annuity contract benefits	422	485	876	927
Interest credited to contractholder funds	417	450	835	913
Amortization of deferred policy acquisition costs	1,018	949	2,069	1,963
Operating costs and expenses	802	789	1,640	1,618
Restructuring and related charges	11	13	20	24
Interest expense	91	92	183	184
Total costs and expenses	9,116	7,492	16,454	15,135
Gain (loss) on disposition of operations	6	2	(17)	3
(Loss) income from operations before income tax (benefit) expense	(1,029)	166	(295)	273
Income tax (benefit) expense	(409)	21	(194)	8
Net (loss) income	$ (620)	$ 145	$ (101)	$ 265
Earnings per share:
Net (loss) income per share - Basic (in dollars per share)	$ (1.19)	$ 0.27	$ (0.19)	$ 0.49
Weighted average shares - Basic (in shares)	523.1	540.7	528.2	540.4
Net (loss) income per share - Diluted (in dollars per share)	$ (1.19)	$ 0.27	$ (0.19)	$ 0.49
Weighted average shares - Diluted (in shares)	523.1	543.0	528.2	542.4
Cash dividends declared per share (in dollars per share)	$ 0.21	$ 0.20	$ 0.42	$ 0.40

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (USD $) In Millions, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2011	Dec. 31, 2010
Investments
Fixed income securities, at fair value (amortized cost $76,502 and $78,786)	$ 78,414	$ 79,612
Equity securities, at fair value (cost $4,329 and $4,228)	4,954	4,811
Mortgage loans	6,827	6,679
Limited partnership interests	4,400	3,816
Short-term, at fair value (amortized cost $2,536 and $3,279)	2,536	3,279
Other	2,158	2,286
Total investments	99,289	100,483
Cash	693	562
Premium installment receivables, net	4,869	4,839
Deferred policy acquisition costs	4,572	4,769
Reinsurance recoverables, net	6,446	6,552
Accrued investment income	875	809
Deferred income taxes	525	784
Property and equipment, net	914	921
Goodwill	874	874
Other assets	1,791	1,605
Separate Accounts	8,175	8,676
Total assets	129,023	130,874
Liabilities
Reserve for property-liability insurance claims and claims expense	20,456	19,468
Reserve for life-contingent contract benefits	13,787	13,482
Contractholder funds	45,078	48,195
Unearned premiums	9,727	9,800
Claim payments outstanding	948	737
Other liabilities and accrued expenses	6,152	5,564
Long-term debt	5,907	5,908
Separate Accounts	8,175	8,676
Total liabilities	110,230	111,830
Commitments and Contingent Liabilities (Note 10)
Equity
Preferred stock, $1 par value, 25 million shares authorized, none issued
Common stock, $.01 par value, 2.0 billion shares authorized and 900 million issued, 517 million and 533 million shares outstanding	9	9
Additional capital paid-in	3,165	3,176
Retained income	31,647	31,969
Deferred ESOP expense	(43)	(44)
Treasury stock, at cost (383 million and 367 million shares)	(16,387)	(15,910)
Unrealized net capital gains and losses:
Unrealized net capital losses on fixed income securities with OTTI	(156)	(190)
Other unrealized net capital gains and losses	1,783	1,089
Unrealized adjustment to DAC, DSI and insurance reserves	(181)	36
Total unrealized net capital gains and losses	1,446	935
Unrealized foreign currency translation adjustments	83	69
Unrecognized pension and other postretirement benefit cost	(1,156)	(1,188)
Total accumulated other comprehensive income (loss)	373	(184)
Total shareholders' equity	18,764	19,016
Noncontrolling interest	29	28
Total equity	18,793	19,044
Total liabilities and equity	$ 129,023	$ 130,874

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Parenthetical) (USD $) In Millions, except Share data, unless otherwise specified	Jun. 30, 2011	Dec. 31, 2010
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Fixed income securities, at fair value, amortized cost (in dollars)	$ 76,502	$ 78,786
Equity securities, at fair value, cost (in dollars)	4,329	4,228
Short-term, at fair value, amortized cost (in dollars)	$ 2,536	$ 3,279
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized	25,000,000	25,000,000
Preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	2,000,000,000	2,000,000,000
Common stock, shares issued	900,000,000	900,000,000
Common stock, shares outstanding	517,000,000	533,000,000
Treasury stock, shares	383,000,000	367,000,000

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010
Cash flows from operating activities
Net (loss) income	$ (101)	$ 265
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation, amortization and other non-cash items	89	26
Realized capital gains and losses	(153)	799
Loss (gain) on disposition of operations	17	(3)
Interest credited to contractholder funds	835	913
Changes in:
Policy benefits and other insurance reserves	665	306
Unearned premiums	(87)	(135)
Deferred policy acquisition costs	57	(70)
Premium installment receivables, net	(22)	9
Reinsurance recoverables, net	(40)	(206)
Income taxes	(226)	74
Other operating assets and liabilities	226	116
Net cash provided by operating activities	1,260	2,094
Proceeds from sales
Fixed income securities	14,140	9,114
Equity securities	854	3,046
Limited partnership interests	335	278
Mortgage loans	65	44
Other investments	109	62
Investment collections
Fixed income securities	2,385	2,391
Mortgage loans	308	638
Other investments	92	44
Investment purchases
Fixed income securities	(13,934)	(11,900)
Equity securities	(781)	(1,501)
Limited partnership interests	(765)	(616)
Mortgage loans	(536)	(10)
Other investments	(146)	(79)
Change in short-term investments, net	1,166	439
Change in other investments, net	(170)	(128)
Purchases of property and equipment, net	(106)	(69)
Disposition of operations	(1)
Net cash provided by investing activities	3,015	1,753
Cash flows from financing activities
Repayment of long-term debt	(1)	(1)
Contractholder fund deposits	1,120	1,567
Contractholder fund withdrawals	(4,508)	(5,112)
Dividends paid	(218)	(215)
Treasury stock purchases	(544)	(5)
Shares reissued under equity incentive plans, net	17	25
Excess tax benefits on share-based payment arrangements	(3)	(4)
Other	(7)	(3)
Net cash used in financing activities	(4,144)	(3,748)
Net increase in cash	131	99
Cash at beginning of period	562	612
Cash at end of period	$ 693	$ 711

General

6 Months Ended

Jun. 30, 2011

General

General

1. General

Basis of presentation

The accompanying condensed consolidated financial statements include the accounts of The Allstate Corporation and its wholly owned subsidiaries, primarily Allstate Insurance Company (“AIC”), a property-liability insurance company with various property-liability and life and investment subsidiaries, including Allstate Life Insurance Company (“ALIC”) (collectively referred to as the “Company” or “Allstate”).

The condensed consolidated financial statements and notes as of June 30, 2011, and for the three-month and six-month periods ended June 30, 2011 and 2010 are unaudited. The condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring accruals), which are, in the opinion of management, necessary for the fair presentation of the financial position, results of operations and cash flows for the interim periods. These condensed consolidated financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010. The results of operations for the interim periods should not be considered indicative of results to be expected for the full year.

Adopted accounting standards

Consolidation Analysis Considering Investments Held through Separate Accounts

In April 2010, the Financial Accounting Standards Board (“FASB”) issued guidance clarifying that an insurer is not required to combine interests in investments held in a qualifying separate account with its interests in the same investments held in the general account when performing a consolidation evaluation. The adoption of this guidance as of January 1, 2011 had no impact on the Company’s results of operations or financial position.

Disclosure of Supplementary Pro Forma Information for Business Combinations

In December 2010, the FASB issued disclosure guidance for entities that enter into business combinations that are material. The guidance specifies that if an entity presents comparative financial statements, the entity should disclose pro forma revenue and earnings of the combined entity as though the business combination that occurred during the current year had occurred as of the beginning of the comparable prior annual reporting period only. The guidance expands the supplemental pro forma disclosures to include a description of the nature and amount of material, nonrecurring pro forma adjustments directly attributable to the business combination. The Company will apply the guidance to any business combinations entered into on or after January 1, 2011.

Pending accounting standards

Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts

In October 2010, the FASB issued guidance modifying the definition of the types of costs incurred by insurance entities that can be capitalized in the acquisition of new and renewal contracts. The guidance specifies that the costs must be based on successful efforts. The guidance also specifies that advertising costs should be included as deferred acquisition costs only when the direct-response advertising accounting criteria are met. If application of the guidance would result in the capitalization of acquisition costs that had not been capitalized prior to adoption, the entity may elect not to capitalize those additional costs. The new guidance is effective for reporting periods beginning after December 15, 2011 and should be applied prospectively, with retrospective application permitted. The Company is in the process of evaluating the impact of adoption on the Company’s results of operations and financial position.

Criteria for Classification as a Troubled Debt Restructuring (“TDR”)

In April 2011, the FASB issued clarifying guidance related to determining whether a loan modification or restructuring should be classified as a TDR. The additional guidance provided pertains to the two criteria used to determine whether a TDR exists, specifically whether the creditor has granted a concession and whether the debtor is experiencing financial difficulties. The new guidance is effective for reporting periods beginning on or after June 15, 2011 with early adoption permitted. The guidance related to the identification of a TDR is to be applied retrospectively to the beginning of the annual period of adoption. The measurement of impairment on a TDR identified under this guidance is effective prospectively. Disclosures about the credit quality of financing receivables and the allowance for credit losses previously deferred for TDRs, is also effective for reporting periods beginning on or after June 15, 2011. The Company is in the process of evaluating the impact of adoption, which is not expected to be material to the Company’s results of operations and financial position.

Criteria for Determining Effective Control for Repurchase Agreements

In April 2011, the FASB issued guidance modifying the assessment criteria of effective control for repurchase agreements. The new guidance removes the criterion requiring an entity to have the ability to repurchase or redeem financial assets on substantially the agreed terms and the collateral maintenance implementation guidance related to that criterion. The guidance is to be applied prospectively to transactions or modifications of existing transactions that occur during reporting periods beginning on or after December 15, 2011. Early adoption is not permitted. The impact of adoption is not expected to be material to the Company’s results of operations and financial position.

Amendments to Fair Value Measurement and Disclosure Requirements

In May 2011, the FASB issued guidance that clarifies the application of existing fair value measurement and disclosure requirements and amends certain fair value measurement principles, requirements and disclosures. To improve consistency in global application, changes in wording were made. The guidance is to be applied prospectively for reporting periods beginning after December 15, 2011. Early adoption is not permitted. The impact of adoption is not expected to be material to the Company’s results of operations and financial position.

Presentation of Comprehensive Income

In June 2011, the FASB issued guidance amending the presentation of comprehensive income and its components. Under the new guidance, an entity has the option to present comprehensive income in a single continuous statement or in two separate but consecutive statements. Both options require an entity to present reclassification adjustments for items reclassified from other comprehensive income to net income in the statement(s) where the components of net income and the components of comprehensive income are presented. The guidance is effective for reporting periods beginning after December 15, 2011 and is to be applied retrospectively. Early adoption is permitted. The impact of adoption is related to presentation only and will have no impact on the Company’s results of operations and financial position.

Earnings per share

6 Months Ended

Jun. 30, 2011

Earnings per share

Earnings per share

2. Earnings per share

Basic earnings per share is computed using the weighted average number of common shares outstanding, including unvested participating restricted stock units. Diluted earnings per share is computed using the weighted average number of common and dilutive potential common shares outstanding. For the Company, dilutive potential common shares consist of outstanding stock options and unvested non-participating restricted stock units.

The computation of basic and diluted earnings per share is presented in the following table.

($ in millions, except per share data)		Three months ended June 30,					Six months ended June 30,
		2011			2010		2011			2010
Numerator:
Net (loss) income	$	(620	)	$	145	$	(101	)	$	265

Denominator:
Weighted average common shares outstanding		523.1			540.7		528.2			540.4
Effect of dilutive potential common shares:
Stock options		--			2.1		--			2.0
Restricted stock units (non-participating)		--			0.2		--			--
Weighted average common and dilutive potential common shares outstanding		523.1			543.0		528.2			542.4

Earnings per share - Basic	$	(1.19	)	$	0.27	$	(0.19	)	$	0.49
Earnings per share - Diluted	$	(1.19	)	$	0.27	$	(0.19	)	$	0.49

As a result of the net loss for the three-month and six-month periods ended June 30, 2011, weighted average dilutive potential common shares outstanding resulting from 2.1 million stock options and 0.5 million restricted stock options (non-participating) in both periods were not included in the computation of diluted earnings per share since inclusion of these securities would have an anti-dilutive effect. In the absence of the net loss, weighted average common and dilutive potential common shares would have totaled 525.7 million and 530.8 million for the three-month and six-month periods ended June 30, 2011, respectively.

The effect of dilutive potential common shares does not include the effect of options with an anti-dilutive effect on earnings per share because their exercise prices exceed the average market price of Allstate common shares during the period or for which the unrecognized compensation cost would have an anti-dilutive effect. Options to purchase 28.3 million and 27.7 million Allstate common shares, with exercise prices ranging from $27.36 to $62.84 and $28.52 to $62.84, were outstanding for the three-month periods ended June 30, 2011 and 2010, respectively, but were not included in the computation of diluted earnings per share in those periods. Options to purchase 28.4 million and 26.1 million Allstate common shares, with exercise prices ranging from $27.36 to $62.84 and $27.36 to $64.53, were outstanding for the six-month periods ended June 30, 2011 and 2010, respectively, but were not included in the computation of diluted earnings per share in those periods.

Supplemental Cash Flow Information

6 Months Ended

Jun. 30, 2011

Supplemental Cash Flow Information

Supplemental Cash Flow Information

3. Supplemental Cash Flow Information

Non-cash investment exchanges, including modifications of certain mortgage loans (primarily refinances at maturity with no concessions granted to the borrower), fixed income securities, limited partnerships and other investments, as well as mergers completed with equity securities, totaled $513 million and $353 million for the six months ended June 30, 2011 and 2010, respectively.

Liabilities for collateral received in conjunction with the Company’s securities lending program and over-the-counter (“OTC”) derivatives are reported in other liabilities and accrued expenses or other investments. The accompanying cash flows are included in cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows along with the activities resulting from management of the proceeds, which are as follows:

($ in millions)		Six months ended June 30,
		2011			2010
Net change in proceeds managed
Net change in short-term investments	$	(421	)	$	211
Operating cash flow (used) provided		(421	)		211
Net change in cash		(2	)		2
Net change in proceeds managed	$	(423	)	$	213

Net change in liabilities
Liabilities for collateral, beginning of year	$	(484	)	$	(658	)
Liabilities for collateral, end of period		(907	)		(445	)
Operating cash flow provided (used)	$	423		$	(213	)

Investments

6 Months Ended

Jun. 30, 2011

Investments.

Investments

4. Investments

Fair values

The amortized cost, gross unrealized gains and losses and fair value for fixed income securities are as follows:

($ in millions)		Amortized		Gross unrealized					Fair
		cost		Gains		Losses			value
June 30, 2011
U.S. government and agencies	$	5,872	$	318	$	(3	)	$	6,187
Municipal		14,557		491		(375	)		14,673
Corporate		40,610		2,014		(255	)		42,369
Foreign government		2,720		327		(4	)		3,043
Residential mortgage-backed securities (“RMBS”)		6,356		203		(569	)		5,990
Commercial mortgage-backed securities (“CMBS”)		2,083		57		(154	)		1,986
Asset-backed securities (“ABS”)		4,281		95		(234	)		4,142
Redeemable preferred stock		23		1		--			24
Total fixed income securities	$	76,502	$	3,506	$	(1,594	)	$	78,414

December 31, 2010
U.S. government and agencies	$	8,320	$	327	$	(51	)	$	8,596
Municipal		16,201		379		(646	)		15,934
Corporate		36,260		1,816		(421	)		37,655
Foreign government		2,821		347		(10	)		3,158
RMBS		8,509		216		(732	)		7,993
CMBS		2,213		58		(277	)		1,994
ABS		4,425		113		(294	)		4,244
Redeemable preferred stock		37		1		--			38
Total fixed income securities	$	78,786	$	3,257	$	(2,431	)	$	79,612

Scheduled maturities

The scheduled maturities for fixed income securities are as follows as of June 30, 2011:

($ in millions)		Amortized		Fair
		cost		value
Due in one year or less	$	2,921	$	2,965
Due after one year through five years		24,089		25,112
Due after five years through ten years		19,237		20,311
Due after ten years		19,618		19,894
		65,865		68,282
RMBS and ABS		10,637		10,132
Total	$	76,502	$	78,414

Actual maturities may differ from those scheduled as a result of prepayments by the issuers. Because of the potential for prepayment on RMBS and ABS, they are not categorized by contractual maturity. CMBS are categorized by contractual maturity because they generally are not subject to prepayment risk.

Net investment income

Net investment income is as follows:

($ in millions)		Three months ended June 30,						Six months ended June 30,
		2011			2010			2011			2010
Fixed income securities	$	899		$	955		$	1,799		$	1,914
Equity securities		34			25			53			46
Mortgage loans		87			99			176			203
Limited partnership interests		18			7			28			13
Short-term investments		1			2			3			4
Other		26			6			37			7
Investment income, before expense		1,065			1,094			2,096			2,187
Investment expense		(45	)		(45	)		(94	)		(88	)
Net investment income	$	1,020		$	1,049		$	2,002		$	2,099

Realized capital gains and losses

Realized capital gains and losses by asset type are as follows:

($ in millions)		Three months ended June 30,						Six months ended June 30,
		2011			2010			2011			2010
Fixed income securities	$	39		$	(188	)	$	12		$	(324	)
Equity securities		15			45			137			59
Mortgage loans		(3	)		(28	)		(9	)		(53	)
Limited partnership interests		53			26			121			5
Derivatives		(53	)		(308	)		(120	)		(493	)
Other		6			2			12			7
Realized capital gains and losses	$	57		$	(451	)	$	153		$	(799	)

Realized capital gains and losses by transaction type are as follows:

($ in millions)		Three months ended June 30,						Six months ended June 30,
		2011			2010			2011			2010
Impairment write-downs	$	(70	)	$	(239	)	$	(184	)	$	(462	)
Change in intent write-downs		(16	)		(67	)		(85	)		(99	)
Net other-than-temporary impairment losses recognized in earnings		(86	)		(306	)		(269	)		(561	)
Sales		141			145			424			233
Valuation of derivative instruments		(50	)		(283	)		(28	)		(438	)
Settlements of derivative instruments		(3	)		(27	)		(92	)		(57	)
Equity method of accounting (“EMA”) limited partnership income		55			20			118			24
Realized capital gains and losses	$	57		$	(451	)	$	153		$	(799	)

Gross gains of $177 million and $144 million and gross losses of $98 million and $113 million were realized on sales of fixed income securities during the three months ended June 30, 2011 and 2010, respectively. Gross gains of $388 million and $286 million and gross losses of $186 million and $187 million were realized on sales of fixed income securities during the six months ended June 30, 2011 and 2010, respectively.

Other-than-temporary impairment losses by asset type are as follows:

($ in millions)		Three months ended June 30, 2011									Six months ended June 30, 2011
		Gross			Included in OCI			Net			Gross			Included in OCI			Net
Fixed income securities:
Municipal	$	(15	)	$	(1	)	$	(16	)	$	(42	)	$	(3	)	$	(45	)
Corporate		--			--			--			(5	)		1			(4	)
Foreign government		--			--			--			(1	)		--			(1	)
RMBS		(35	)		--			(35	)		(107	)		(25	)		(132	)
CMBS		(10	)		(3	)		(13	)		(26	)		(7	)		(33	)
ABS		--			--			--			(7	)		3			(4	)
Total fixed income securities		(60	)		(4	)		(64	)		(188	)		(31	)		(219	)
Equity securities		(13	)		--			(13	)		(33	)		--			(33	)
Mortgage loans		(7	)		--			(7	)		(13	)		--			(13	)
Limited partnership interests		(1	)		--			(1	)		(2	)		--			(2	)
Other		(1	)		--			(1	)		(2	)		--			(2	)
Other-than-temporary impairment losses	$	(82	)	$	(4	)	$	(86	)	$	(238	)	$	(31	)	$	(269	)

		Three months ended June 30, 2010									Six months ended June 30, 2010
		Gross			Included in OCI			Net			Gross			Included in OCI			Net
Fixed income securities:
Municipal	$	(68	)	$	4		$	(64	)	$	(105	)	$	4		$	(101	)
Corporate		(6	)		(1	)		(7	)		(53	)		2			(51	)
RMBS		(124	)		5			(119	)		(212	)		(2	)		(214	)
CMBS		(17	)		(11	)		(28	)		(43	)		(11	)		(54	)
ABS		(6	)		(15	)		(21	)		(9	)		(16	)		(25	)
Total fixed income securities		(221	)		(18	)		(239	)		(422	)		(23	)		(445	)
Equity securities		(31	)		--			(31	)		(37	)		--			(37	)
Mortgage loans		(28	)		--			(28	)		(47	)		--			(47	)
Limited partnership interests		(8	)		--			(8	)		(32	)		--			(32	)
Other-than-temporary impairment losses	$	(288	)	$	(18	)	$	(306	)	$	(538	)	$	(23	)	$	(561	)

The total amount of other-than-temporary impairment losses included in accumulated other comprehensive income at the time of impairment for fixed income securities, which were not included in earnings, are presented in the following table. The amount excludes $249 million and $322 million as of June 30, 2011 and December 31, 2010, respectively, of net unrealized gains related to changes in valuation of the fixed income securities subsequent to the impairment measurement date.

($ in millions)		June 30, 2011			December 31, 2010
Municipal	$	(13	)	$	(27	)
Corporate		(32	)		(31	)
RMBS		(411	)		(467	)
CMBS		(11	)		(49	)
ABS		(22	)		(41	)
Total	$	(489	)	$	(615	)

Rollforwards of the cumulative credit losses recognized in earnings for fixed income securities held as of the end of the period are as follows:

($ in millions)		Three months ended June 30,						Six months ended June 30,
		2011			2010			2011			2010
Beginning balance	$	(963	)	$	(1,236	)	$	(1,046	)	$	(1,187	)
Additional credit loss for securities previously other-than-temporarily impaired		(31	)		(101	)		(90	)		(180	)
Additional credit loss for securities not previously other-than-temporarily impaired		(17	)		(71	)		(44	)		(172	)
Reduction in credit loss for securities disposed or collected		94			95			247			226
Reduction in credit loss for securities the Company has made the decision to sell or more likely than not will be required to sell		--			1			15			1
Change in credit loss due to accretion of increase in cash flows		5			3			6			3
Ending balance	$	(912	)	$	(1,309	)	$	(912	)	$	(1,309	)

The Company uses its best estimate of future cash flows expected to be collected from the fixed income security, discounted at the security’s original or current effective rate, as appropriate, to calculate a recovery value and determine whether a credit loss exists. The determination of cash flow estimates is inherently subjective and methodologies may vary depending on facts and circumstances specific to the security. All reasonably available information relevant to the collectability of the security, including past events, current conditions, and reasonable and supportable assumptions and forecasts, are considered when developing the estimate of cash flows expected to be collected. That information generally includes, but is not limited to, the remaining payment terms of the security, prepayment speeds, foreign exchange rates, the financial condition and future earnings potential of the issue or issuer, expected defaults, expected recoveries, the value of underlying collateral, vintage, geographic concentration, available reserves or escrows, current subordination levels, third party guarantees and other credit enhancements. Other information, such as industry analyst reports and forecasts, sector credit ratings, financial condition of the bond insurer for insured fixed income securities, and other market data relevant to the realizability of contractual cash flows, may also be considered. The estimated fair value of collateral will be used to estimate recovery value if the Company determines that the security is dependent on the liquidation of collateral for ultimate settlement. If the estimated recovery value is less than the amortized cost of the security, a credit loss exists and an other-than-temporary impairment for the difference between the estimated recovery value and amortized cost is recorded in earnings. The portion of the unrealized loss related to factors other than credit remains classified in accumulated other comprehensive income. If the Company determines that the fixed income security does not have sufficient cash flow or other information to estimate a recovery value for the security, the Company may conclude that the entire decline in fair value is deemed to be credit related and the loss is recorded in earnings.

Unrealized net capital gains and losses

Unrealized net capital gains and losses included in accumulated other comprehensive income are as follows:

($ in millions)		Fair			Gross unrealized				Unrealized net
June 30, 2011		value			Gains		Losses		gains (losses)
Fixed income securities	$	78,414		$	3,506	$	(1,594	)	$	1,912
Equity securities		4,954			705		(80	)		625
Short-term investments		2,536			--		--			--
Derivative instruments (1)		(31	)		--		(36	)		(36	)
EMA limited partnership interests (2)										7
Unrealized net capital gains and losses, pre-tax										2,508
Amounts recognized for:
Insurance reserves (3)										(217	)
DAC and DSI (4)										(61	)
Amounts recognized										(278	)
Deferred income taxes										(784	)
Unrealized net capital gains and losses, after-tax									$	1,446

(1)	Included in the fair value of derivative instruments are $(5) million classified as assets and $26 million classified as liabilities.
(2)	Unrealized net capital gains and losses for limited partnership interests represent the Company’s share of EMA limited partnerships’ other comprehensive income. Fair value and gross gains and losses are not applicable.
(3)	The insurance reserves adjustment represents the amount by which the reserve balance would increase if the net unrealized gains in the applicable product portfolios were realized and reinvested at current lower interest rates, resulting in a premium deficiency. Although the Company evaluates premium deficiencies on the combined performance of life insurance and immediate annuities with life contingencies, the adjustment primarily relates to structured settlement annuities with life contingencies, in addition to annuity buy-outs and certain payout annuities with life contingencies.
(4)	The DAC and DSI adjustment balance represents the amount by which the amortization of DAC and DSI would increase or decrease if the unrealized gains or losses in the respective product portfolios were realized.

		Fair			Gross unrealized				Unrealized net
December 31, 2010		value			Gains		Losses		gains (losses)
Fixed income securities	$	79,612		$	3,257	$	(2,431	)	$	826
Equity securities		4,811			646		(63	)		583
Short-term investments		3,279			--		--			--
Derivative instruments (1)		(17	)		2		(24	)		(22	)
Unrealized net capital gains and losses, pre-tax										1,387
Amounts recognized for:
Insurance reserves										(41	)
DAC and DSI										97
Amounts recognized										56
Deferred income taxes										(508	)
Unrealized net capital gains and losses, after-tax									$	935

(1)	Included in the fair value of derivative instruments are $2 million classified as assets and $19 million classified as liabilities.

Change in unrealized net capital gains and losses

The change in unrealized net capital gains and losses for the six months ended June 30, 2011 is as follows:

($ in millions)

Fixed income securities	$	1,086
Equity securities		42
Derivative instruments		(14	)
EMA limited partnership interests		7
Total		1,121
Amounts recognized for:
Insurance reserves		(176	)
DAC and DSI		(158	)
Amounts recognized		(334	)
Deferred income taxes		(276	)
Increase in unrealized net capital gains and losses	$	511

Portfolio monitoring

The Company has a comprehensive portfolio monitoring process to identify and evaluate each fixed income and equity security whose carrying value may be other-than-temporarily impaired.

For each fixed income security in an unrealized loss position, the Company assesses whether management with the appropriate authority has made the decision to sell or whether it is more likely than not the Company will be required to sell the security before recovery of the amortized cost basis for reasons such as liquidity, contractual or regulatory purposes. If a security meets either of these criteria, the security’s decline in fair value is considered other than temporary and is recorded in earnings.

If the Company has not made the decision to sell the fixed income security and it is not more likely than not the Company will be required to sell the fixed income security before recovery of its amortized cost basis, the Company evaluates whether it expects to receive cash flows sufficient to recover the entire amortized cost basis of the security. The Company calculates the estimated recovery value by discounting the best estimate of future cash flows at the security’s original or current effective rate, as appropriate, and compares this to the amortized cost of the security. If the Company does not expect to receive cash flows sufficient to recover the entire amortized cost basis of the fixed income security, the credit loss component of the impairment is recorded in earnings, with the remaining amount of the unrealized loss related to other factors recognized in other comprehensive income.

For equity securities, the Company considers various factors, including whether it has the intent and ability to hold the equity security for a period of time sufficient to recover its cost basis. Where the Company lacks the intent and ability to hold to recovery, or believes the recovery period is extended, the equity security’s decline in fair value is considered other than temporary and is recorded in earnings. For equity securities managed by a third party, the Company has contractually retained its decision making authority as it pertains to selling equity securities that are in an unrealized loss position.

The Company’s portfolio monitoring process includes a quarterly review of all securities to identify instances where the fair value of a security compared to its amortized cost (for fixed income securities) or cost (for equity securities) is below established thresholds. The process also includes the monitoring of other impairment indicators such as ratings, ratings downgrades and payment defaults. The securities identified, in addition to other securities for which the Company may have a concern, are evaluated for potential other-than-temporary impairment using all reasonably available information relevant to the collectability or recovery of the security. Inherent in the Company’s evaluation of other-than-temporary impairment for these fixed income and equity securities are assumptions and estimates about the financial condition and future earnings potential of the issue or issuer. Some of the factors considered in evaluating whether a decline in fair value is other than temporary are: 1) the financial condition, near-term and long-term prospects of the issue or issuer, including relevant industry specific market conditions and trends, geographic location and implications of rating agency actions and offering prices; 2) the specific reasons that a security is in an unrealized loss position, including overall market conditions which could affect liquidity; and 3) the length of time and extent to which the fair value has been less than amortized cost or cost.

The following table summarizes the gross unrealized losses and fair value of fixed income and equity securities by the length of time that individual securities have been in a continuous unrealized loss position.

($ in millions)	Less than 12 months						12 months or more							Total
	Number		Fair		Unrealized		Number		Fair		Unrealized			unrealized
	of issues		value		losses		of issues		value		losses			losses
June 30, 2011
Fixed income securities
U.S. government and agencies	9	$	198	$	(3	)	--	$	--	$	--		$	(3	)
Municipal	417		1,985		(75	)	357		2,222		(300	)		(375	)
Corporate	385		4,980		(95	)	113		1,552		(160	)		(255	)
Foreign government	25		114		(4	)	--		--		--			(4	)
RMBS	120		368		(12	)	296		1,338		(557	)		(569	)
CMBS	29		314		(16	)	75		609		(138	)		(154	)
ABS	30		441		(5	)	121		1,235		(229	)		(234	)
Total fixed income securities	1,015		8,400		(210	)	962		6,956		(1,384	)		(1,594	)
Equity securities	895		666		(60	)	87		73		(20	)		(80	)
Total fixed income and equity securities	1,910	$	9,066	$	(270	)	1,049	$	7,029	$	(1,404	)	$	(1,674	)

Investment grade fixed income securities	836	$	6,786	$	(156	)	618	$	4,665	$	(607	)	$	(763	)
Below investment grade fixed income securities	179		1,614		(54	)	344		2,291		(777	)		(831	)
Total fixed income securities	1,015	$	8,400	$	(210	)	962	$	6,956	$	(1,384	)	$	(1,594	)

December 31, 2010
Fixed income securities
U.S. government and agencies	32	$	2,081	$	(51	)	--	$	--	$	--		$	(51	)
Municipal	847		4,130		(175	)	411		2,715		(471	)		(646	)
Corporate	438		5,994		(186	)	150		1,992		(235	)		(421	)
Foreign government	33		277		(9	)	1		10		(1	)		(10	)
RMBS	280		583		(12	)	422		1,939		(720	)		(732	)
CMBS	14		158		(3	)	114		835		(274	)		(277	)
ABS	68		762		(8	)	133		1,313		(286	)		(294	)
Total fixed income securities	1,712		13,985		(444	)	1,231		8,804		(1,987	)		(2,431	)
Equity securities	773		610		(48	)	44		91		(15	)		(63	)
Total fixed income and equity securities	2,485	$	14,595	$	(492	)	1,275	$	8,895	$	(2,002	)	$	(2,494	)

Investment grade fixed income securities	1,607	$	13,280	$	(408	)	857	$	6,217	$	(943	)	$	(1,351	)
Below investment grade fixed income securities	105		705		(36	)	374		2,587		(1,044	)		(1,080	)
Total fixed income securities	1,712	$	13,985	$	(444	)	1,231	$	8,804	$	(1,987	)	$	(2,431	)

As of June 30, 2011, $750 million of unrealized losses are related to securities with an unrealized loss position less than 20% of amortized cost or cost, the degree of which suggests that these securities do not pose a high risk of being other-than-temporarily impaired. Of the $750 million, $532 million are related to unrealized losses on investment grade fixed income securities. Investment grade is defined as a security having a rating of Aaa, Aa, A or Baa from Moody’s, a rating of AAA, AA, A or BBB from Standard & Poor’s (“S&P”), Fitch, Dominion or Realpoint, a rating of aaa, aa, a or bbb from A.M. Best, or a comparable internal rating if an externally provided rating is not available. Unrealized losses on investment grade securities are principally related to widening credit spreads or rising interest rates since the time of initial purchase.

As of June 30, 2011, the remaining $924 million of unrealized losses are related to securities in unrealized loss positions greater than or equal to 20% of amortized cost or cost. Investment grade fixed income securities comprising $231 million of these unrealized losses were evaluated based on factors such as expected cash flows and the financial condition and near-term and long-term prospects of the issue or issuer and were determined to have adequate resources to fulfill contractual obligations. Of the $924 million, $660 million are related to below investment grade fixed income securities and $33 million are related to equity securities. Of these amounts, $542 million of the below investment grade fixed income securities had been in an unrealized loss position greater than or equal to 20% of amortized cost for a period of twelve or more consecutive months as of June 30, 2011. Unrealized losses on below investment grade securities are principally related to RMBS, CMBS and ABS and were the result of wider credit spreads resulting from higher risk premiums since the time of initial purchase, largely due to macroeconomic conditions and credit market deterioration, including the impact of lower real estate valuations.

RMBS, CMBS and ABS in an unrealized loss position were evaluated based on actual and projected collateral losses relative to the securities’ positions in the respective securitization trusts, security specific expectations of cash flows, and credit ratings. This evaluation also takes into consideration credit enhancement, measured in terms of (i) subordination from other classes of securities in the trust that are contractually obligated to absorb losses before the class of security the Company owns, (ii) the expected impact of other structural features embedded in the securitization trust beneficial to the class of securities the Company owns, such as overcollateralization and excess spread, and (iii) for RMBS and ABS in an unrealized loss position, credit enhancements from reliable bond insurers, where applicable. Municipal bonds in an unrealized loss position were evaluated based on the quality of the underlying securities, taking into consideration credit enhancements from reliable bond insurers, where applicable. Unrealized losses on equity securities are primarily related to equity market fluctuations.

As of June 30, 2011, the Company has not made the decision to sell and it is not more likely than not the Company will be required to sell fixed income securities with unrealized losses before recovery of the amortized cost basis. As of June 30, 2011, the Company had the intent and ability to hold equity securities with unrealized losses for a period of time sufficient for them to recover.

Limited partnerships

As of June 30, 2011 and December 31, 2010, the carrying value of equity method limited partnership interests totaled $2.99 billion and $2.47 billion, respectively. The Company recognizes an impairment loss for equity method investments when evidence demonstrates that the loss is other than temporary. Evidence of a loss in value that is other than temporary may include the absence of an ability to recover the carrying amount of the investment or the inability of the investee to sustain a level of earnings that would justify the carrying amount of the investment. The Company had no write-downs related to equity method limited partnership interests for the three months and six months ended June 30, 2011 and $1 million for the three months and six months ended June 30, 2010.

As of June 30, 2011 and December 31, 2010, the carrying value for cost method limited partnership interests was $1.41 billion and $1.35 billion, respectively. To determine if an other-than-temporary impairment has occurred, the Company evaluates whether an impairment indicator has occurred in the period that may have a significant adverse effect on the carrying value of the investment. Impairment indicators may include: significantly reduced valuations of the investments held by the limited partnerships; actual recent cash flows received being significantly less than expected cash flows; reduced valuations based on financing completed at a lower value; completed sale of a material underlying investment at a price significantly lower than expected; or any other adverse events since the last financial statements received that might affect the fair value of the investee’s capital. Additionally, the Company’s portfolio monitoring process includes a quarterly review of all cost method limited partnerships to identify instances where the net asset value is below established thresholds for certain periods of time, as well as investments that are performing below expectations, for further impairment consideration. If a cost method limited partnership is other-than-temporarily impaired, the carrying value is written down to fair value, generally estimated to be equivalent to the reported net asset value of the underlying funds. The Company had write-downs related to cost method investments of $1 million and $7 million for the three months ended June 30, 2011 and 2010, respectively, and $2 million and $31 million for the six months ended June 30, 2011 and 2010, respectively.

Mortgage loans

Mortgage loans are evaluated for impairment on a specific loan basis through a quarterly credit monitoring process and review of key credit quality indicators. Mortgage loans are considered impaired when it is probable that the Company will not collect the contractual principal and interest. Valuation allowances are established for impaired loans to reduce the carrying value to the fair value of the collateral less costs to sell or the present value of the loan’s expected future repayment cash flows discounted at the loan’s original effective interest rate. Impaired mortgage loans may not have a valuation allowance when the fair value of the collateral less costs to sell is higher than the carrying value. Mortgage loan valuation allowances are charged off when there is no reasonable expectation of recovery. The impairment evaluation is non-statistical in respect to the aggregate portfolio but considers facts and circumstances attributable to each loan. It is not considered probable that additional impairment losses, beyond those identified on a specific loan basis, have been incurred as of June 30, 2011.

Accrual of income is suspended for mortgage loans that are in default or when full and timely collection of principal and interest payments is not probable. Cash receipts on mortgage loans on nonaccrual status are generally recorded as a reduction of carrying value.

Debt service coverage ratio is considered a key credit quality indicator when mortgage loans are evaluated for impairment. Debt service coverage ratio represents the amount of estimated cash flows from the property available to the borrower to meet principal and interest payment obligations. Debt service coverage ratio estimates are updated annually or more frequently if conditions are warranted based on the Company’s credit monitoring process. The following table reflects the carrying value of non-impaired fixed rate and variable rate mortgage loans summarized by debt service coverage ratio distribution:

($ in millions)		June 30, 2011						December 31, 2010
Debt service coverage ratio distribution		Fixed rate mortgage loans		Variable rate mortgage loans		Total		Fixed rate mortgage loans		Variable rate mortgage loans		Total
Below 1.0	$	327	$	--	$	327	$	280	$	--	$	280
1.0 - 1.25		1,622		--		1,622		1,583		16		1,599
1.26 - 1.50		1,672		26		1,698		1,520		5		1,525
Above 1.50		2,740		266		3,006		2,540		546		3,086
Total non-impaired mortgage loans	$	6,361	$	292	$	6,653	$	5,923	$	567	$	6,490

Mortgage loans with a debt service coverage ratio below 1.0 that are not considered impaired primarily relate to instances where the borrower has the financial capacity to fund the revenue shortfalls from the properties for the foreseeable term, the decrease in cash flows from the properties is considered temporary, or there are other risk mitigating circumstances such as additional collateral, escrow balances or borrower guarantees.

The net carrying value of impaired mortgage loans is as follows:

($ in millions)		June 30, 2011		December 31, 2010
Impaired mortgage loans with a valuation allowance	$	153	$	168
Impaired mortgage loans without a valuation allowance		21		21
Total impaired mortgage loans	$	174	$	189
Valuation allowance on impaired mortgage loans	$	68	$	84

The average balance of impaired loans was $178 million during the six months ended June 30, 2011.

The rollforward of the valuation allowance on impaired mortgage loans is as follows:

($ in millions)		Three months ended June 30, 2011			Six months ended June 30, 2011
Beginning balance	$	77		$	84
Net increase in valuation allowance		7			13
Charge offs		(16	)		(29	)
Ending balance	$	68		$	68

The carrying value of past due mortgage loans is as follows:

($ in millions)		June 30, 2011		December 31, 2010
Less than 90 days past due	$	27	$	12
90 days or greater past due		48		78
Total past due		75		90
Current loans		6,752		6,589
Total mortgage loans	$	6,827	$	6,679

- Definition

This item represents the entire disclosure related to Investments in Certain Debt and Equity Securities which include all debt and equity securities with readily determinable fair values. A debt security represents a creditor relationship with an enterprise that is in the form of a security. Debt securities include, among other items, US Treasury securities, US government securities, municipal securities, corporate bonds, convertible debt, commercial paper, and all securitized debt instruments. An equity security represents an ownership interest in an enterprise or the right to acquire or dispose of an ownership interest in an enterprise at fixed or determinable prices. Equity securities include, among other things, common stock, certain preferred stock, warrant rights, call options, and put options, but do not include convertible debt. An entity may opt to provide the reader with additional narrative text to better understand the nature of investments in debt and equity securities. Equity investment disclosure, or group of investments for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20% of the voting stock and the investment is accounted for using the equity method, and the reasons why it is. This element represents the required disclosure for investments accounted for under the cost-method. The carrying amount of such investments may be adjusted, for example, distributions in excess of cost (return of capital) or for other-than-temporary impairments. The cost method and lower-of-cost or market, an adaptation of the cost method, is generally followed for most investments in non-controlled corporations, in some corporate joint ventures, and to a lesser extent in unconsolidated subsidiaries in which the Entity does not have the ability to exercise significant influence.

+ References+ Details

Fair Value of Assets and Liabilities

6 Months Ended

Jun. 30, 2011

Fair Value of Assets and Liabilities

Fair Value of Assets and Liabilities

5. Fair Value of Assets and Liabilities

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The hierarchy for inputs used in determining fair value maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Assets and liabilities recorded on the Condensed Consolidated Statements of Financial Position at fair value are categorized in the fair value hierarchy based on the observability of inputs to the valuation techniques as follows:

Level 1: Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company can access.

Level 2: Assets and liabilities whose values are based on the following:

(a) Quoted prices for similar assets or liabilities in active markets;

(b) Quoted prices for identical or similar assets or liabilities in markets that are not active; or

(c) Valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or liability.

Level 3: Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Unobservable inputs reflect the Company’s estimates of the assumptions that market participants would use in valuing the assets and liabilities.

The availability of observable inputs varies by instrument. In situations where fair value is based on internally developed pricing models or inputs that are unobservable in the market, the determination of fair value requires more judgment. The degree of judgment exercised by the Company in determining fair value is typically greatest for instruments categorized in Level 3. In many instances, valuation inputs used to measure fair value fall into different levels of the fair value hierarchy. The category level in the fair value hierarchy is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company uses prices and inputs that are current as of the measurement date, including during periods of market disruption. In periods of market disruption, the ability to observe prices and inputs may be reduced for many instruments.

The Company has two types of situations where investments are classified as Level 3 in the fair value hierarchy. The first is where quotes continue to be received from independent third-party valuation service providers and all significant inputs are market observable; however, there has been a significant decrease in the volume and level of activity for the asset when compared to normal market activity such that the degree of market observability has declined to a point where categorization as a Level 3 measurement is considered appropriate. The indicators considered in determining whether a significant decrease in the volume and level of activity for a specific asset has occurred include the level of new issuances in the primary market, trading volume in the secondary market, the level of credit spreads over historical levels, applicable bid-ask spreads, and price consensus among market participants and other pricing sources.

The second situation where the Company classifies securities in Level 3 is where specific inputs significant to the fair value estimation models are not market observable. This occurs in two primary instances. The first relates to the Company’s use of broker quotes. The second relates to auction rate securities (“ARS”) backed by student loans for which a key input, the anticipated date liquidity will return to this market, is not market observable.

Certain assets are not carried at fair value on a recurring basis, including investments such as mortgage loans, limited partnership interests, bank loans and policy loans. Accordingly, such investments are only included in the fair value hierarchy disclosure when the investment is subject to remeasurement at fair value after initial recognition and the resulting remeasurement is reflected in the condensed consolidated financial statements. In addition, derivatives embedded in fixed income securities are not disclosed in the hierarchy as free-standing derivatives since they are presented with the host contracts in fixed income securities.

In determining fair value, the Company principally uses the market approach which generally utilizes market transaction data for the same or similar instruments. To a lesser extent, the Company uses the income approach which involves determining fair values from discounted cash flow methodologies. For the majority of Level 2 and Level 3 valuations, a combination of the market and income approaches is used.

Summary of significant valuation techniques for assets and liabilities measured at fair value on a recurring basis

Level 1 measurements

· Fixed income securities: Comprise U.S. Treasuries. Valuation is based on unadjusted quoted prices for identical assets in active markets that the Company can access.

· Equity securities: Comprise actively traded, exchange-listed U.S. and international equity securities. Valuation is based on unadjusted quoted prices for identical assets in active markets that the Company can access.

· Short-term: Comprise actively traded money market funds that have daily quoted net asset values for identical assets that the Company can access.

· Separate account assets: Comprise actively traded mutual funds that have daily quoted net asset values for identical assets that the Company can access. Net asset values for the actively traded mutual funds in which the separate account assets are invested are obtained daily from the fund managers.

Level 2 measurements

· Fixed income securities:

U.S. government and agencies: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads.

Municipal: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads.

Corporate, including privately placed: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads. Also included are privately placed securities valued using a discounted cash flow model that is widely accepted in the financial services industry and uses market observable inputs and inputs derived principally from, or corroborated by, observable market data. The primary inputs to the discounted cash flow model include an interest rate yield curve, as well as published credit spreads for similar assets in markets that are not active that incorporate the credit quality and industry sector of the issuer.

Foreign government: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads.

RMBS - U.S. government sponsored entities (“U.S. Agency”), Prime residential mortgage-backed securities (“Prime”) and Alt-A residential mortgage-backed securities (“Alt-A”); ABS - other: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields, prepayment speeds, collateral performance and credit spreads.

CMBS: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields, collateral performance and credit spreads.

Redeemable preferred stock: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields, underlying stock prices and credit spreads.

· Equity securities: The primary inputs to the valuation include quoted prices or quoted net asset values for identical or similar assets in markets that are not active.

· Short-term: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads. For certain short-term investments, amortized cost is used as the best estimate of fair value.

· Other investments: Free-standing exchange listed derivatives that are not actively traded are valued based on quoted prices for identical instruments in markets that are not active.

OTC derivatives, including interest rate swaps, foreign currency swaps, foreign exchange forward contracts, and certain credit default swaps, are valued using models that rely on inputs such as interest rate yield curves, currency rates, and counterparty credit spreads that are observable for substantially the full term of the contract. The valuation techniques underlying the models are widely accepted in the financial services industry and do not involve significant judgment.

Level 3 measurements

· Fixed income securities:

Municipal: ARS primarily backed by student loans that have become illiquid due to failures in the auction market are valued using a discounted cash flow model that is widely accepted in the financial services industry and uses significant non-market observable inputs, including estimates of future coupon rates if auction failures continue, the anticipated date liquidity will return to the market and illiquidity premium. Also included are municipal bonds that are not rated by third party credit rating agencies but are rated by the National Association of Insurance Commissioners (“NAIC”), and other high-yield municipal bonds. The primary inputs to the valuation of these municipal bonds include quoted prices for identical or similar assets in markets that exhibit less liquidity relative to those markets supporting Level 2 fair value measurements, contractual cash flows, benchmark yields and credit spreads.

Corporate, including privately placed: Primarily valued based on non-binding broker quotes. Also included are equity-indexed notes which are valued using a discounted cash flow model that is widely accepted in the financial services industry and uses significant non-market observable inputs, such as volatility. Other inputs include an interest rate yield curve, as well as published credit spreads for similar assets that incorporate the credit quality and industry sector of the issuer.

RMBS - Subprime residential mortgage-backed securities (“Subprime”), Prime and Alt-A: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that exhibit less liquidity relative to those markets supporting Level 2 fair value measurements, contractual cash flows, benchmark yields, prepayment speeds, collateral performance and credit spreads. Also included are Subprime, Prime and Alt-A securities that are valued based on non-binding broker quotes. Due to the reduced availability of actual market prices or relevant observable inputs as a result of the decrease in liquidity that has been experienced in the market for these securities, Subprime and certain Alt-A securities are categorized as Level 3.

CMBS: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that exhibit less liquidity relative to those markets supporting Level 2 fair value measurements, contractual cash flows, benchmark yields, collateral performance and credit spreads. Also included are CMBS that are valued based on non-binding broker quotes. Due to the reduced availability of actual market prices or relevant observable inputs as a result of the decrease in liquidity that has been experienced in the market for these securities, certain CMBS are categorized as Level 3.

ABS - Collateralized debt obligations (“CDO”): Valued based on non-binding broker quotes received from brokers who are familiar with the investments. Due to the reduced availability of actual market prices or relevant observable inputs as a result of the decrease in liquidity that has been experienced in the market for these securities, all CDO are categorized as Level 3.

ABS - other: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that exhibit less liquidity relative to those markets supporting Level 2 fair value measurements, contractual cash flows, benchmark yields, prepayment speeds, collateral performance and credit spreads. Also included are ABS that are valued based on non-binding broker quotes. Due to the reduced availability of actual market prices or relevant observable inputs as a result of the decrease in liquidity that has been experienced in the market for these securities, certain ABS are categorized as Level 3.

· Other investments: Certain OTC derivatives, such as interest rate caps and floors, certain credit default swaps and OTC options (including swaptions), are valued using models that are widely accepted in the financial services industry. These are categorized as Level 3 as a result of the significance of non-market observable inputs such as volatility. Other primary inputs include interest rate yield curves and credit spreads.

· Contractholder funds: Derivatives embedded in certain life and annuity contracts are valued internally using models widely accepted in the financial services industry that determine a single best estimate of fair value for the embedded derivatives within a block of contractholder liabilities. The models primarily use stochastically determined cash flows based on the contractual elements of embedded derivatives, projected option cost and applicable market data, such as interest rate yield curves and equity index volatility assumptions. These are categorized as Level 3 as a result of the significance of non-market observable inputs.

Assets and liabilities measured at fair value on a non-recurring basis

Mortgage loans written-down to fair value in connection with recognizing impairments are valued based on the fair value of the underlying collateral less costs to sell. Limited partnership interests written-down to fair value in connection with recognizing other-than-temporary impairments are valued using net asset values.

The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring and non-recurring basis as of June 30, 2011:

($ in millions)		Quoted prices in active markets for identical assets		Significant other observable inputs		Significant unobservable inputs		Counterparty and cash collateral		Balance as of June 30,
		(Level 1)		(Level 2)		(Level 3)		netting		2011
Assets
Fixed income securities:
U.S. government and agencies	$	4,298	$	1,889	$	--			$	6,187
Municipal		--		13,119		1,554				14,673
Corporate		--		40,649		1,720				42,369
Foreign government		--		3,043		--				3,043
RMBS		--		4,796		1,194				5,990
CMBS		--		1,048		938				1,986
ABS		--		1,975		2,167				4,142
Redeemable preferred stock		--		23		1				24
Total fixed income securities		4,298		66,542		7,574				78,414
Equity securities		4,248		664		42				4,954
Short-term investments		271		2,265		--				2,536
Other investments:
Free-standing derivatives		--		425		22	$	(99)		348
Separate account assets		8,175		--		--				8,175
Other assets		2		--		1				3
Total recurring basis assets		16,994		69,896		7,639		(99)		94,430
Non-recurring basis (1)		--		--		62				62
Total assets at fair value	$	16,994	$	69,896	$	7,701	$	(99)	$	94,492
% of total assets at fair value		18.0 %		74.0 %		8.1 %		(0.1) %		100.0 %

Liabilities
Contractholder funds:
Derivatives embedded in life and annuity contracts	$	--	$	--	$	(629)			$	(629)
Other liabilities:
Free-standing derivatives		--		(217)		(78)	$	95		(200)
Total liabilities at fair value	$	--	$	(217)	$	(707)	$	95	$	(829)
% of total liabilities at fair value		-- %		26.2 %		85.3 %		(11.5) %		100.0 %

(1) Includes $50 million of mortgage loans, $1 million of limited partnership interests and $11 million of other investments written-down to fair value in connection with recognizing other-than-temporary impairments.

The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring and non-recurring basis as of December 31, 2010:

($ in millions)		Quoted prices in active markets for identical assets		Significant other observable inputs		Significant unobservable inputs		Counterparty and cash collateral		Balance as of December 31,
		(Level 1)		(Level 2)		(Level 3)		netting		2010
Assets
Fixed income securities:
U.S. government and agencies	$	4,976	$	3,620	$	--			$	8,596
Municipal		--		13,918		2,016				15,934
Corporate		--		35,747		1,908				37,655
Foreign government		--		3,158		--				3,158
RMBS		--		6,199		1,794				7,993
CMBS		--		1,071		923				1,994
ABS		--		1,827		2,417				4,244
Redeemable preferred stock		--		37		1				38
Total fixed income securities		4,976		65,577		9,059				79,612
Equity securities		4,316		432		63				4,811
Short-term investments		174		3,105		--				3,279
Other investments:
Free-standing derivatives		--		651		74	$	(286)		439
Separate account assets		8,676		--		--				8,676
Other assets		--		--		1				1
Total recurring basis assets		18,142		69,765		9,197		(286)		96,818
Non-recurring basis (1)		--		--		120				120
Total assets at fair value	$	18,142	$	69,765	$	9,317	$	(286)	$	96,938
% of total assets at fair value		18.7 %		72.0 %		9.6 %		(0.3) %		100.0 %

Liabilities
Contractholder funds:
Derivatives embedded in life and annuity contracts	$	--	$	--	$	(653)			$	(653)
Other liabilities:
Free-standing derivatives		(2)		(529)		(95)	$	263		(363)
Total liabilities at fair value	$	(2)	$	(529)	$	(748)	$	263	$	(1,016)
% of total liabilities at fair value		0.2 %		52.1 %		73.6 %		(25.9) %		100.0 %

(1) Includes $111 million of mortgage loans and $9 million of limited partnership interests written-down to fair value in connection with recognizing other-than-temporary impairments.

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the three months ended June 30, 2011.

($ in millions)				Total realized and unrealized gains (losses) included in:
		Balance as of March 31, 2011		Net income (1)		OCI on Statement of Financial Position		Transfers into Level 3		Transfers out of Level 3
Assets
Fixed income securities:
Municipal	$	1,864	$	(13)	$	45	$	--	$	(22)
Corporate		2,035		23		8		87		(117)
RMBS		1,398		(26)		1		--		(68)
CMBS		995		(21)		4		10		(10)
ABS		2,091		11		12		--		(9)
Redeemable preferred stock		1		--		--		--		--
Total fixed income securities		8,384		(26)		70		97		(226)
Equity securities		43		--		--		--		--
Other investments:
Free-standing derivatives, net		(71)		(3)		--		--		--
Other assets		1		--		--		--		--
Total recurring Level 3 assets	$	8,357	$	(29)	$	70	$	97	$	(226)

Liabilities
Contractholder funds:
Derivatives embedded in life and annuity contracts	$	(630)	$	(34)	$	--	$	--	$	--
Total recurring Level 3 liabilities	$	(630)	$	(34)	$	--	$	--	$	--

		Purchases		Sales		Issuances		Settlements		Balance as of June 30, 2011
Assets
Fixed income securities:
Municipal	$	3	$	(321)	$	--	$	(2)	$	1,554
Corporate		35		(347)		--		(4)		1,720
RMBS		--		(60)		--		(51)		1,194
CMBS		2		(41)		--		(1)		938
ABS		213		(49)		--		(102)		2,167
Redeemable preferred stock		--		--		--		--		1
Total fixed income securities		253		(818)		--		(160)		7,574
Equity securities		--		(1)		--		--		42
Other investments:
Free-standing derivatives, net		19		--		--		(1)		(56)	(2)
Other assets		--		--		--		--		1
Total recurring Level 3 assets	$	272	$	(819)	$	--	$	(161)	$	7,561

Liabilities
Contractholder funds:
Derivatives embedded in life and annuity contracts	$	--	$	--	$	(13)	$	48	$	(629)
Total recurring Level 3 liabilities	$	--	$	--	$	(13)	$	48	$	(629)

(1) The effect to net income totals $(63) million and is reported in the Condensed Consolidated Statements of Operations as follows: $(38) million in realized capital gains and losses, $9 million in net investment income, $(26) million in interest credited to contractholder funds and $(8) million in life and annuity contract benefits.

(2) Comprises $22 million of assets and $78 million of liabilities.

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the six months ended June 30, 2011.

($ in millions)				Total realized and unrealized gains (losses) included in:
		Balance as of December 31, 2010		Net income (1)		OCI on Statement of Financial Position		Transfers into Level 3		Transfers out of Level 3
Assets
Fixed income securities:
Municipal	$	2,016	$	(24)	$	66	$	--	$	(59)
Corporate		1,908		35		18		182		(164)
RMBS		1,794		(87)		106		--		(113)
CMBS		923		(42)		118		66		(69)
ABS		2,417		55		28		--		(313)
Redeemable preferred stock		1		--		--		--		--
Total fixed income securities		9,059		(63)		336		248		(718)
Equity securities		63		(10)		--		--		(10)
Other investments:
Free-standing derivatives, net		(21)		(34)		--		--		--
Other assets		1		--		--		--		--
Total recurring Level 3 assets	$	9,102	$	(107)	$	336	$	248	$	(728)

Liabilities
Contractholder funds:
Derivatives embedded in life and annuity contracts	$	(653)	$	(26)	$	--	$	--	$	--
Total recurring Level 3 liabilities	$	(653)	$	(26)	$	--	$	--	$	--

		Purchases		Sales		Issuances		Settlements		Balance as of June 30, 2011
Assets
Fixed income securities:
Municipal	$	13	$	(455)	$	--	$	(3)	$	1,554
Corporate		131		(378)		--		(12)		1,720
RMBS		--		(378)		--		(128)		1,194
CMBS		10		(66)		--		(2)		938
ABS		303		(163)		--		(160)		2,167
Redeemable preferred stock		--		--		--		--		1
Total fixed income securities		457		(1,440)		--		(305)		7,574
Equity securities		--		(1)		--		--		42
Other investments:
Free-standing derivatives, net		67		--		--		(68)		(56)	(2)
Other assets		--		--		--		--		1
Total recurring Level 3 assets	$	524	$	(1,441)	$	--	$	(373)	$	7,561

Liabilities
Contractholder funds:
Derivatives embedded in life and annuity contracts	$	--	$	--	$	(27)	$	77	$	(629)
Total recurring Level 3 liabilities	$	--	$	--	$	(27)	$	77	$	(629)

(1) The effect to net income totals $(133) million and is reported in the Condensed Consolidated Statements of Operations as follows: $(123) million in realized capital gains and losses, $16 million in net investment income, $(63) million in interest credited to contractholder funds and $37 million in life and annuity contract benefits.

(2) Comprises $22 million of assets and $78 million of liabilities.

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the three months ended June 30, 2010.

($ in millions)				Total realized and unrealized gains (losses) included in:
		Balance as of March 31, 2010		Net income (1)		OCI on Statement of Financial Position		Purchases, sales, issuances and settlements, net		Transfers into Level 3		Transfers out of Level 3		Balance as of June 30, 2010
Assets
Fixed income securities:
Municipal	$	2,482	$	(31)	$	21	$	(236)	$	16	$	(55)	$	2,197
Corporate		2,177		(10)		26		45		151		(164)		2,225
RMBS		2,079		(111)		180		(124)		--		(14)		2,010
CMBS		1,130		(73)		192		(165)		--		(204)		880
ABS		2,403		3		6		141		--		(123)		2,430
Redeemable preferred stock		2		--		--		(1)		--		--		1
Total fixed income securities		10,273		(222)		425		(340)		167		(560)		9,743
Equity securities		72		(6)		1		(1)		--		--		66
Other investments:
Free-standing derivatives, net		(38)		(99)		--		38		--		--		(99)	(2)
Other assets		2		--		--		--		--		--		2
Total recurring Level 3 assets	$	10,309	$	(327)	$	426	$	(303)	$	167	$	(560)	$	9,712

Liabilities
Contractholder funds:
Derivatives embedded in life and annuity contracts	$	(90)	$	(30)	$	--	$	1	$	--	$	--	$	(119)
Total recurring Level 3 liabilities	$	(90)	$	(30)	$	--	$	1	$	--	$	--	$	(119)

(1) The effect to net income totals $(357) million and is reported in the Condensed Consolidated Statements of Operations as follows: $(345) million in realized capital gains and losses, $22 million in net investment income, $(4) million in interest credited to contractholder funds and $(30) million in life and annuity contract benefits.

(2) Comprises $27 million of assets and $126 million of liabilities.

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the six months ended June 30, 2010.

($ in millions)				Total realized and unrealized gains (losses) included in:
		Balance as of December 31, 2009		Net income (1)		OCI on Statement of Financial Position		Purchases, sales, issuances and settlements, net		Transfers into Level 3		Transfers out of Level 3		Balance as of June 30, 2010
Assets
Fixed income securities:
Municipal	$	2,706	$	(47)	$	58	$	(452)	$	16	$	(84)	$	2,197
Corporate		2,241		(37)		101		34		163		(277)		2,225
Foreign government		20		--		--		(20)		--		--		--
RMBS		1,671		(169)		343		179		--		(14)		2,010
CMBS		1,404		(107)		300		(328)		24		(413)		880
ABS		2,001		18		99		472		--		(160)		2,430
Redeemable preferred stock		2		--		--		(1)		--		--		1
Total fixed income securities		10,045		(342)		901		(116)		203		(948)		9,743
Equity securities		69		(6)		4		3		--		(4)		66
Other investments:
Free-standing derivatives, net		55		(232)		--		78		--		--		(99)	(2)
Other assets		2		--		--		--		--		--		2
Total recurring Level 3 assets	$	10,171	$	(580)	$	905	$	(35)	$	203	$	(952)	$	9,712

Liabilities
Contractholder funds:
Derivatives embedded in life and annuity contracts	$	(110)	$	(12)	$	--	$	3	$	--	$	--	$	(119)
Total recurring Level 3 liabilities	$	(110)	$	(12)	$	--	$	3	$	--	$	--	$	(119)

(1) The effect to net income totals $(592) million and is reported in the Condensed Consolidated Statements of Operations as follows: $(631) million in realized capital gains and losses, $54 million in net investment income, $(3) million in interest credited to contractholder funds and $(12) million in life and annuity contract benefits.

(2) Comprises $27 million of assets and $126 million of liabilities.

Transfers between level categorizations may occur due to changes in the availability of market observable inputs, which generally are caused by changes in market conditions such as liquidity, trading volume or bid-ask spreads. Transfers between level categorizations may also occur due to changes in the valuation source. For example, in situations where a fair value quote is not provided by the Company’s independent third-party valuation service provider and as a result the price is stale or has been replaced with a broker quote, the security is transferred into Level 3. Transfers in and out of level categorizations are reported as having occurred at the beginning of the quarter in which the transfer occurred. Therefore, for all transfers into Level 3, all realized and changes in unrealized gains and losses in the quarter of transfer are reflected in the Level 3 rollforward table.

There were no transfers between Level 1 and Level 2 during the three and six months ended June 30, 2011 or 2010.

During the six months ended June 30, 2011 and the three and six months ended June 30, 2010, certain CMBS and ABS were transferred into Level 2 from Level 3 as a result of increased liquidity in the market and the availability of market observable quoted prices for similar assets. When transferring these securities into Level 2, the Company did not change the source of fair value estimates or modify the estimates received from independent third-party valuation service providers or the internal valuation approach. Accordingly, for securities included within this group, there was no change in fair value in conjunction with the transfer resulting in a realized or unrealized gain or loss.

Transfers into Level 3 during the three and six months ended June 30, 2011 and 2010 included situations where a fair value quote was not provided by the Company’s independent third-party valuation service provider and as a result the price was stale or had been replaced with a broker quote resulting in the security being classified as Level

3. Transfers out of Level 3 during the three and six months ended June 30, 2011 and 2010 included situations where a broker quote was used in the prior period and a fair value quote became available from the Company’s independent third-party valuation service provider in the current period. A quote utilizing the new pricing source was not available as of the prior period, and any gains or losses related to the change in valuation source for individual securities were not significant.

The following table provides the total gains and (losses) included in net income for Level 3 assets and liabilities still held as of June 30.

($ in millions)		Three months ended June 30,				Six months ended June 30,
		2011		2010		2011		2010
Assets
Fixed income securities:
Municipal	$	(5)	$	(31)	$	(15)	$	(43	)
Corporate		6		(14)		10		(50	)
RMBS		(27)		(106)		(63)		(164	)
CMBS		(11)		(19)		(16)		(43	)
ABS		5		14		7		15
Total fixed income securities		(32)		(156)		(77)		(285	)
Equity securities		--		(7)		(10)		(6	)
Other investments:
Free-standing derivatives, net		--		(55)		3		(141	)
Total recurring Level 3 assets	$	(32)	$	(218)	$	(84)	$	(432	)

Liabilities
Contractholder funds:
Derivatives embedded in life and annuity contracts	$	(34)	$	(30)	$	(26)	$	(12	)
Total recurring Level 3 liabilities	$	(34)	$	(30)	$	(26)	$	(12	)

The amounts in the table above represent gains and losses included in net income for the period of time that the asset or liability was determined to be in Level 3. These gains and losses total $(66) million for the three months ended June 30, 2011 and are reported as follows: $(41) million in realized capital gains and losses, $9 million in net investment income, $(26) million in interest credited to contractholder funds and $(8) million in life and annuity contract benefits. These gains and losses total $(248) million for the three months ended June 30, 2010 and are reported as follows: $(233) million in realized capital gains and losses, $20 million in net investment income, $(5) million in interest credited to contractholder funds and $(30) million in life and annuity contract benefits. These gains and losses total $(110) million for the six months ended June 30, 2011 and are reported as follows: $(97) million in realized capital gains and losses, $13 million in net investment income, $(63) million in interest credited to contractholder funds and $37 million in life and annuity contract benefits. These gains and losses total $(444) million for the six months ended June 30, 2010 and are reported as follows: $(461) million in realized capital gains and losses, $34 million in net investment income, $(5) million in interest credited to contractholder funds and $(12) million in life and annuity contract benefits.

Presented below are the carrying values and fair value estimates of financial instruments not carried at fair value.

Financial assets

($ in millions)		June 30, 2011				December 31, 2010
		Carrying value		Fair value		Carrying value		Fair value
Mortgage loans	$	6,827	$	6,879	$	6,679	$	6,439
Limited partnership interests - cost basis		1,408		1,704		1,348		1,481
Bank loans		354		351		363		355

The fair value of mortgage loans is based on discounted contractual cash flows or, if the loans are impaired due to credit reasons, the fair value of collateral less costs to sell. Risk adjusted discount rates are selected using current rates at which similar loans would be made to borrowers with similar characteristics, using similar types of properties as collateral. The fair value of limited partnership interests accounted for on the cost basis is determined using reported net asset values of the underlying funds. The fair value of bank loans, which are reported in other investments, is based on broker quotes from brokers familiar with the loans and current market conditions.

Financial liabilities

($ in millions)		June 30, 2011				December 31, 2010
		Carrying value		Fair value		Carrying value		Fair value
Contractholder funds on investment contracts	$	33,126	$	32,269	$	36,163	$	35,194
Long-term debt		5,907		6,222		5,908		6,325
Liability for collateral		907		907		484		484

The fair value of contractholder funds on investment contracts is based on the terms of the underlying contracts utilizing prevailing market rates for similar contracts adjusted for the Company’s own credit risk. Deferred annuities included in contractholder funds are valued using discounted cash flow models which incorporate market value margins, which are based on the cost of holding economic capital, and the Company’s own credit risk. Immediate annuities without life contingencies and fixed rate funding agreements are valued at the present value of future benefits using market implied interest rates which include the Company’s own credit risk.

The fair value of long-term debt is based on market observable data (such as the fair value of the debt when traded as an asset) or, in certain cases, is determined using discounted cash flow calculations based on current interest rates for instruments with comparable terms and considers the Company’s own credit risk. The liability for collateral is valued at carrying value due to its short-term nature.

- Definition

This item represents the complete disclosure regarding the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the Company is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risk is are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References+ Details

Derivative Financial Instruments

6 Months Ended

Jun. 30, 2011

Derivative Financial Instruments

Derivative Financial Instruments

6. Derivative Financial Instruments

The Company primarily uses derivatives for risk management, to partially mitigate potential adverse impacts from changes in risk-free interest rates, negative equity market valuations and increases in credit spreads, and asset replication. In addition, the Company has derivatives embedded in non-derivative host contracts that are required to be separated from the host contracts and accounted for at fair value. With the exception of non-hedge derivatives used for asset replication and non-hedge embedded derivatives, all of the Company’s derivatives are evaluated for their ongoing effectiveness as either accounting hedge or non-hedge derivative financial instruments on at least a quarterly basis. The Company does not use derivatives for trading purposes. Non-hedge accounting is generally used for “portfolio” level hedging strategies where the terms of the individual hedged items do not meet the strict homogeneity requirements to permit the application of hedge accounting.

Property-Liability uses interest rate swaps to mitigate municipal bond interest rate risk within the municipal bond portfolio. Equity index futures are used by Property-Liability to offset valuation losses in the equity portfolio during periods of declining equity market values. Credit default swaps are typically used to mitigate the credit risk within the Property-Liability fixed income portfolio. Prior to March 31, 2011, Property-Liability used interest rate swaption contracts and exchange traded options on interest rate futures to offset potential declining fixed income market values resulting from significant increases in interest rates. Prior to March 31, 2011, exchange traded equity put options were utilized by Property-Liability for overall equity portfolio protection from significant declines in equity market values below a targeted level.

Portfolio duration management is a risk management strategy that is principally employed by Property-Liability wherein financial futures and interest rate swaps are utilized to change the duration of the portfolio in order to offset the economic effect that interest rates would otherwise have on the fair value of its fixed income securities.

Property-Liability uses futures to hedge the market risk related to deferred compensation liability contracts and forward contracts to hedge foreign currency risk associated with holding foreign currency denominated investments and foreign operations.

Asset-liability management is a risk management strategy that is principally employed by Allstate Financial to balance the respective interest-rate sensitivities of its assets and liabilities. Depending upon the attributes of the assets acquired and liabilities issued, derivative instruments such as interest rate swaps, caps, floors, swaptions and futures are utilized to change the interest rate characteristics of existing assets and liabilities to ensure the relationship is maintained within specified ranges and to reduce exposure to rising or falling interest rates. Allstate Financial uses financial futures and interest rate swaps to hedge anticipated asset purchases and liability issuances and futures and options for hedging the equity exposure contained in its equity indexed life and annuity product contracts that offer equity returns to contractholders. In addition, Allstate Financial uses interest rate swaps to hedge interest rate risk inherent in funding agreements.

Allstate Financial uses foreign currency swaps primarily to reduce the foreign currency risk associated with issuing foreign currency denominated funding agreements and holding foreign currency denominated investments. Credit default swaps are also typically used to mitigate the credit risk within the Allstate Financial fixed income portfolio.

When derivatives meet specific criteria, they may be designated as accounting hedges and accounted for as fair value, cash flow, foreign currency fair value or foreign currency cash flow hedges. Allstate Financial designates certain of its interest rate and foreign currency swap contracts and certain investment risk transfer reinsurance agreements as fair value hedges when the hedging instrument is highly effective in offsetting the risk of changes in the fair value of the hedged item. Allstate Financial designates certain of its foreign currency swap contracts as cash flow hedges when the hedging instrument is highly effective in offsetting the exposure of variations in cash flows for the hedged risk that could affect net income. Amounts are reclassified to net investment income or realized capital gains and losses as the hedged item affects net income.

Asset replication refers to the “synthetic” creation of assets through the use of derivatives and primarily investment grade host bonds to replicate securities that are either unavailable in the cash markets or more economical to acquire in synthetic form. The Company replicates fixed income securities using a combination of a credit default swap and one or more highly rated fixed income securities to synthetically replicate the economic characteristics of one or more cash market securities. The Company also creates “synthetic” exposure to equity markets through the use of exchange traded equity index future contracts and an investment grade host bond.

The Company’s primary embedded derivatives are equity options in Allstate Financial life and annuity product contracts, which provide equity returns to contractholders; equity-indexed notes containing equity call options, which provide a coupon payout that is determined using one or more equity-based indices; credit default swaps in synthetic collateralized debt obligations, which provide enhanced coupon rates as a result of selling credit protection; and conversion options in fixed income securities, which provide the Company with the right to convert the instrument into a predetermined number of shares of common stock. Substantially all of the fixed income securities with conversion options were sold in March 2011.

The notional amounts specified in the contracts are used to calculate the exchange of contractual payments under the agreements and are generally not representative of the potential for gain or loss on these agreements. However, the notional amounts specified in credit default swaps where the Company has sold credit protection represent the maximum amount of potential loss, assuming no recoveries.

Fair value, which is equal to the carrying value, is the estimated amount that the Company would receive or pay to terminate the derivative contracts at the reporting date. The carrying value amounts for OTC derivatives are further adjusted for the effects, if any, of legally enforceable master netting agreements and are presented on a net basis, by counterparty agreement, in the Condensed Consolidated Statements of Financial Position. For certain exchange traded derivatives, the exchange requires margin deposits as well as daily cash settlements of margin accounts. As of June 30, 2011, the Company pledged $12 million of cash and securities in the form of margin deposits.

For those derivatives which qualify for fair value hedge accounting, net income includes the changes in the fair value of both the derivative instrument and the hedged risk, and therefore reflects any hedging ineffectiveness. For cash flow hedges, gains and losses are amortized from accumulated other comprehensive income and are reported in net income in the same period the forecasted transactions being hedged impact net income. For embedded derivatives in fixed income securities, net income includes the change in fair value of the embedded derivative and accretion income related to the host instrument. For non-hedge derivatives, net income includes changes in fair value and accrued periodic settlements, when applicable.

The following table provides a summary of the volume and fair value positions of derivative instruments as well as their reporting location in the Condensed Consolidated Statement of Financial Position as of June 30, 2011.

($ in millions, except number of contracts)	Asset derivatives
			Volume (1)
	Balance sheet location		Notional amount	Number of contracts		Fair value, net		Gross asset		Gross liability
Derivatives designated as accounting hedging instruments
Interest rate swap agreements	Other investments	$	207	n/a	$	(15)	$	--	$	(15)
Foreign currency swap agreements	Other investments		50	n/a		(5)		2		(7)
Total		$	257	n/a	$	(20)	$	2	$	(22)

Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate swap agreements	Other investments	$	5,585	n/a	$	138	$	161	$	(23)
Interest rate swaption agreements	Other investments		2,250	n/a		13		13		--
Interest rate cap and floor agreements	Other investments		1,383	n/a		(5)		--		(5)
Financial futures contracts and options	Other investments		n/a	9,000		5		5		--
Financial futures contracts and options	Other assets		n/a	840		--		--		--
Equity and index contracts
Options, futures and warrants (2)	Other investments		160	14,931		221		221		--
Options, futures and warrants	Other assets		n/a	1,183		2		2		--
Embedded derivative financial instruments
Conversion options	Fixed income securities		5	n/a		--		--		--
Equity-indexed call options	Fixed income securities		150	n/a		16		16		--
Credit default swaps	Fixed income securities		172	n/a		(78)		--		(78)
Other embedded derivative financial instruments	Other investments		1,000	n/a		--		--		--
Credit default contracts
Credit default swaps - buying protection	Other investments		121	n/a		(1)		1		(2)
Credit default swaps - selling protection	Other investments		60	n/a		(1)		1		(2)
Other contracts
Other contracts	Other investments		6	n/a		--		--		--
Other contracts	Other assets		5	n/a		1		1		--
Total		$	10,897	25,954	$	311	$	421	$	(110)

Total asset derivatives		$	11,154	25,954	$	291	$	423	$	(132)

(1) Volume for OTC derivative contracts is represented by their notional amounts. Volume for exchange traded derivatives is represented by the number of contracts, which is the basis on which they are traded. (n/a = not applicable)

(2) In addition to the number of contracts presented in the table, the Company held 308,430 stock rights and 4,389,707 stock warrants. Stock rights and warrants can be converted to cash upon sale of those instruments or exercised for shares of common stock.

	Liability derivatives
			Volume (1)
	Balance sheet location		Notional amount	Number of contracts		Fair value, net		Gross asset		Gross liability
Derivatives designated as accounting hedging instruments
Interest rate swap agreements	Other liabilities & accrued expenses	$	39	n/a	$	(2)	$	--	$	(2)
Foreign currency swap agreements	Other liabilities & accrued expenses		152	n/a		(27)		--		(27)
Total		$	191	n/a	$	(29)	$	--	$	(29)

Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate swap agreements	Other liabilities & accrued expenses	$	2,479	n/a	$	15	$	28	$	(13)
Interest rate swaption agreements	Other liabilities & accrued expenses		940	n/a		5		5		--
Interest rate cap and floor agreements	Other liabilities & accrued expenses		1,669	n/a		(19)		1		(20)
Financial futures contracts and options	Other liabilities & accrued expenses		n/a	270		--		--		--
Equity and index contracts
Options and futures	Other liabilities & accrued expenses		n/a	15,316		(104)		--		(104)
Foreign currency contracts
Foreign currency swap agreements	Other liabilities & accrued expenses		50	n/a		--		--		--
Foreign currency forwards and options	Other liabilities & accrued expenses		277	n/a		(2)		2		(4)
Embedded derivative financial instruments
Guaranteed accumulation benefits	Contractholder funds		1,085	n/a		(62)		--		(62)
Guaranteed withdrawal benefits	Contractholder funds		737	n/a		(31)		--		(31)
Equity-indexed and forward starting options in life and annuity product contracts	Contractholder funds		4,432	n/a		(528)		--		(528)
Other embedded derivative financial instruments	Contractholder funds		85	n/a		(8)		--		(8)
Credit default contracts
Credit default swaps – buying protection	Other liabilities & accrued expenses		1,020	n/a		(10)		5		(15)
Credit default swaps – selling protection	Other liabilities & accrued expenses		605	n/a		(54)		2		(56)
Total		$	13,379	15,586	$	(798)	$	43	$	(841)

Total liability derivatives		$	13,570	15,586	$	(827)	$	43	$	(870)

Total derivatives		$	24,724	41,540	$	(536)

($ in millions, except number of contracts)	Asset derivatives
			Volume (1)
	Balance sheet location		Notional amount	Number of contracts		Fair value, net		Gross asset		Gross liability
Derivatives designated as accounting hedging instruments
Interest rate swap agreements	Other investments	$	156	n/a	$	(18)	$	--	$	(18)
Foreign currency swap agreements	Other investments		64	n/a		2		3		(1)
Total		$	220	n/a	$	(16)	$	3	$	(19)

Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate swap agreements	Other investments	$	1,469	n/a	$	65	$	81	$	(16)
Interest rate swaption agreements	Other investments		4,161	n/a		50		50		--
Interest rate cap and floor agreements	Other investments		226	n/a		(2)		1		(3)
Financial futures contracts and options	Other investments		n/a	8,000		3		3		--
Financial futures contracts and options	Other assets		n/a	1,420		--		--		--
Equity and index contracts
Options, futures and warrants (2)	Other investments		64	38,451		359		359		--
Options, futures and warrants	Other assets		n/a	292		--		--		--
Foreign currency contracts
Foreign currency swap agreements	Other investments		90	n/a		6		6		--
Foreign currency forwards and options	Other investments		257	n/a		6		7		(1)
Embedded derivative financial instruments
Conversion options	Fixed income securities		820	n/a		236		238		(2)
Equity-indexed call options	Fixed income securities		300	n/a		47		47		--
Credit default swaps	Fixed income securities		181	n/a		(88)		--		(88)
Other embedded derivative financial instruments	Other investments		1,000	n/a		--		--		--
Credit default contracts
Credit default swaps - buying protection	Other investments		299	n/a		(5)		2		(7)
Credit default swaps - selling protection	Other investments		150	n/a		(8)		2		(10)
Other contracts
Other contracts	Other investments		13	n/a		--		--		--
Other contracts	Other assets		5	n/a		1		1		--
Total		$	9,035	48,163	$	670	$	797	$	(127)

Total asset derivatives		$	9,255	48,163	$	654	$	800	$	(146)

(2) In addition to the number of contracts presented in the table, the Company held 2,768 stock rights and 1,379,932 stock warrants. Stock warrants can be converted to cash upon sale of those instruments or exercised for shares of common stock.

	Liability derivatives
			Volume (1)
	Balance sheet location		Notional amount	Number of contracts		Fair value, net		Gross asset		Gross liability
Derivatives designated as accounting hedging instruments
Interest rate swap agreements	Other liabilities & accrued expenses	$	3,345	n/a	$	(181)	$	20	$	(201)
Interest rate swap agreements	Contractholder funds		--	n/a		2		2		--
Foreign currency swap agreements	Other liabilities & accrued expenses		138	n/a		(20)		--		(20)
Foreign currency and interest rate swap agreements	Other liabilities & accrued expenses		435	n/a		34		34		--
Foreign currency and interest rate swap agreements	Contractholder funds		--	n/a		28		28		--
Total		$	3,918	n/a	$	(137)	$	84	$	(221)

Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate swap agreements	Other liabilities & accrued expenses	$	4,543	n/a	$	29	$	97	$	(68)
Interest rate swaption agreements	Other liabilities & accrued expenses		4,400	n/a		18		18		--
Interest rate cap and floor agreements	Other liabilities & accrued expenses		3,216	n/a		(22)		1		(23)
Financial futures contracts and options	Other liabilities & accrued expenses		n/a	15,150		(1)		--		(1)
Equity and index contracts
Options and futures	Other liabilities & accrued expenses		64	21,585		(168)		2		(170)
Foreign currency contracts
Foreign currency forwards and options	Other liabilities & accrued expenses		316	n/a		1		2		(1)
Embedded derivative financial instruments
Guaranteed accumulation benefits	Contractholder funds		1,067	n/a		(88)		--		(88)
Guaranteed withdrawal benefits	Contractholder funds		739	n/a		(47)		--		(47)
Equity-indexed and forward starting options in life and annuity product contracts	Contractholder funds		4,694	n/a		(515)		--		(515)
Other embedded derivative financial instruments	Contractholder funds		85	n/a		(3)		--		(3)
Credit default contracts
Credit default swaps – buying protection	Other liabilities & accrued expenses		1,127	n/a		(13)		6		(19)
Credit default swaps – selling protection	Other liabilities & accrued expenses		482	n/a		(66)		1		(67)
Total		$	20,733	36,735	$	(875)	$	127	$	(1,002)

Total liability derivatives		$	24,651	36,735	$	(1,012)	$	211	$	(1,223)

Total derivatives		$	33,906	84,898	$	(358)

The following table provides a summary of the impacts of the Company’s foreign currency contracts in cash flow hedging relationships in the Condensed Consolidated Statements of Operations and the Condensed Consolidated Statements of Financial Position. Amortization of net losses from accumulated other comprehensive income related to cash flow hedges is expected to be $7 million during the next twelve months.

($ in millions)		Three months ended June 30,				Six months ended June 30,
Effective portion		2011		2010		2011		2010
(Loss) gain recognized in OCI on derivatives during the period	$	(5)	$	22	$	(13)	$	28
(Loss) gain recognized in OCI on derivatives during the term of the hedging relationship		(36)		2		(36)		2
Gain reclassified from AOCI into income (net investment income)		1		--		1		1
Gain reclassified from AOCI into income (realized capital gains and losses)		--		2		--		2
Ineffective portion and amount excluded from effectiveness
Gain recognized in income on derivatives (realized capital gains and losses)		--		--		--		--

The following tables present gains and losses from valuation, settlements and hedge ineffectiveness reported on derivatives used in fair value hedging relationships and derivatives not designated as accounting hedging instruments in the Condensed Consolidated Statements of Operations.

($ in millions)		Three months ended June 30, 2011
		Net investment income		Realized capital gains and losses		Life and annuity contract benefits		Interest credited to contractholder funds		Operating costs and expenses		Total gain (loss) recognized in net income on derivatives
Derivatives in fair value accounting hedging relationships
Interest rate contracts	$	(2)	$	--	$	--	$	--	$	--	$	(2)
Subtotal		(2)		--		--		--		--		(2)

Derivatives not designated as accounting hedging instruments
Interest rate contracts		--		(53)		--		--		--		(53)
Equity and index contracts		--		--		--		8		--		8
Embedded derivative financial instruments		--		(3)		(8)		9		--		(2)
Credit default contracts		--		3		--		--		--		3
Other contracts		--		--		--		3		--		3
Subtotal		--		(53)		(8)		20		--		(41)
Total	$	(2)	$	(53)	$	(8)	$	20	$	--	$	(43)

		Six months ended June 30, 2011
		Net investment income		Realized capital gains and losses		Life and annuity contract benefits		Interest credited to contractholder funds		Operating costs and expenses		Total gain (loss) recognized in net income on derivatives
Derivatives in fair value accounting hedging relationships
Interest rate contracts	$	(1)	$	(8)	$	--	$	(5)	$	--	$	(14)
Foreign currency and interest rate contracts		--		--		--		(32)		--		(32)
Subtotal		(1)		(8)		--		(37)		--		(46)

Derivatives not designated as accounting hedging instruments
Interest rate contracts		--		(104)		--		--		--		(104)
Equity and index contracts		--		(19)		--		46		7		34
Embedded derivative financial instruments		--		5		37		(13)		--		29
Foreign currency contracts		--		(5)		--		--		2		(3)
Credit default contracts		--		11		--		--		--		11
Other contracts		--		--		--		5		--		5
Subtotal		--		(112)		37		38		9		(28)
Total	$	(1)	$	(120)	$	37	$	1	$	9	$	(74)

		Three months ended June 30, 2010
		Net investment income		Realized capital gains and losses		Life and annuity contract benefits		Interest credited to contractholder funds		Operating costs and expenses		Total gain (loss) recognized in net income on derivatives
Derivatives in fair value accounting hedging relationships
Interest rate contracts	$	(72)	$	2	$	--	$	13	$	--	$	(57)
Foreign currency and interest rate contracts		--		(1)		--		(16)		--		(17)
Subtotal		(72)		1		--		(3)		--		(74)

Derivatives not designated as accounting hedging instruments
Interest rate contracts		--		(282)		--		--		--		(282)
Equity and index contracts		--		82		--		(70)		(14)		(2)
Embedded derivative financial instruments		--		(106)		(28)		112		--		(22)
Foreign currency contracts		--		3		--		--		(1)		2
Credit default contracts		--		(9)		--		--		--		(9)
Other contracts		--		1		--		2		--		3
Subtotal		--		(311)		(28)		44		(15)		(310)
Total	$	(72)	$	(310)	$	(28)	$	41	$	(15)	$	(384)

		Six months ended June 30, 2010
		Net investment income		Realized capital gains and losses		Life and annuity contract benefits		Interest credited to contractholder funds		Operating costs and expenses		Total gain (loss) recognized in net income on derivatives
Derivatives in fair value accounting hedging relationships
Interest rate contracts	$	(113)	$	2	$	--	$	12	$	--	$	(99)
Foreign currency and interest rate contracts		--		(1)		--		(40)		--		(41)
Subtotal		(113)		1		--		(28)		--		(140)

Derivatives not designated as accounting hedging instruments
Interest rate contracts		--		(438)		--		--		--		(438)
Equity and index contracts		--		43		--		(36)		(8)		(1)
Embedded derivative financial instruments		--		(119)		(8)		110		--		(17)
Foreign currency contracts		--		20		--		--		(6)		14
Credit default contracts		--		(3)		--		--		--		(3)
Other contracts		--		1		--		2		--		3
Subtotal		--		(496)		(8)		76		(14)		(442)
Total	$	(113)	$	(495)	$	(8)	$	48	$	(14)	$	(582)

The following tables provide a summary of the changes in fair value of the Company’s fair value hedging relationships in the Condensed Consolidated Statements of Operations.

($ in millions)		Three months ended June 30, 2011
		Gain (loss) on derivatives				Gain (loss) on hedged risk
Location of gain or (loss) recognized in net income on derivatives		Interest rate contracts		Foreign currency & interest rate contracts		Contractholder funds		Investments
Net investment income	$	2	$	--	$	--	$	(2)
Realized capital gains and losses		--		--		--		--
Total	$	2	$	--	$	--	$	(2)

		Six months ended June 30, 2011
		Gain (loss) on derivatives				Gain (loss) on hedged risk
Location of gain or (loss) recognized in net income on derivatives		Interest rate contracts		Foreign currency & interest rate contracts		Contractholder funds		Investments
Interest credited to contractholder funds	$	(7)	$	(34)	$	41	$	--
Net investment income		23		--		--		(23)
Realized capital gains and losses		(8)		--		--		--
Total	$	8	$	(34)	$	41	$	(23)

		Three months ended June 30, 2010
		Gain (loss) on derivatives				Gain (loss) on hedged risk
Location of gain or (loss) recognized in net income on derivatives		Interest rate contracts		Foreign currency & interest rate contracts		Contractholder funds		Investments
Interest credited to contractholder funds	$	9	$	(24)	$	15	$	--
Net investment income		(43)		--		--		43
Realized capital gains and losses		2		(1)		--		--
Total	$	(32)	$	(25)	$	15	$	43

		Six months ended June 30, 2010
		Gain (loss) on derivatives				Gain (loss) on hedged risk
Location of gain or (loss) recognized in net income on derivatives		Interest rate contracts		Foreign currency & interest rate contracts		Contractholder funds		Investments
Interest credited to contractholder funds	$	8	$	(57)	$	49	$	--
Net investment income		(56)		--		--		56
Realized capital gains and losses		2		(1)		--		--
Total	$	(46)	$	(58)	$	49	$	56

The Company manages its exposure to credit risk by utilizing highly rated counterparties, establishing risk control limits, executing legally enforceable master netting agreements (“MNAs”) and obtaining collateral where appropriate. The Company uses MNAs for OTC derivative transactions, including interest rate swap, foreign currency swap, interest rate cap, interest rate floor, credit default swap, forward and certain option agreements (including swaptions). These agreements permit either party to net payments due for transactions covered by the agreements. Under the provisions of the agreements, collateral is either pledged or obtained when certain predetermined exposure limits are exceeded. As of June 30, 2011, counterparties pledged $83 million in cash and securities to the Company, and the Company pledged $107 million in securities to counterparties which includes $48 million of collateral posted under MNAs for contracts containing credit-risk-contingent provisions that are in a liability position and $59 million of collateral posted under MNAs for contracts without credit-risk-contingent liabilities. The Company has not incurred any losses on derivative financial instruments due to counterparty nonperformance. Other derivatives, including futures and certain option contracts, are traded on organized exchanges which require margin deposits and guarantee the execution of trades, thereby mitigating any potential credit risk.

Counterparty credit exposure represents the Company’s potential loss if all of the counterparties concurrently fail to perform under the contractual terms of the contracts and all collateral, if any, becomes worthless. This exposure is measured by the fair value of OTC derivative contracts with a positive fair value at the reporting date reduced by the effect, if any, of legally enforceable master netting agreements.

The following table summarizes the counterparty credit exposure by counterparty credit rating as it relates to interest rate swap, foreign currency swap, interest rate cap, interest rate floor, free-standing credit default swap, forward and certain option agreements (including swaptions).

($ in millions)	June 30, 2011							December 31, 2010
Rating (1)	Number of counterparties		Notional amount (2)		Credit exposure (2)		Exposure, net of collateral (2)	Number of counterparties		Notional amount (2)		Credit exposure (2)		Exposure, net of collateral (2)
AA-	1	$	567	$	16	$	--	2	$	2,322	$	43	$	16
A+	3		5,140		28		8	5		3,189		16		10
A	4		4,161		50		4	3		3,479		17		17
A-	--		--		--		--	1		89		31		31
BBB+	1		5		35		35	--		--		--		--
Total	9	$	9,873	$	129	$	47	11	$	9,079	$	107	$	74

(1) Rating is the lower of S&P or Moody’s ratings.

(2) Only OTC derivatives with a net positive fair value are included for each counterparty.

Market risk is the risk that the Company will incur losses due to adverse changes in market rates and prices. Market risk exists for all of the derivative financial instruments the Company currently holds, as these instruments may become less valuable due to adverse changes in market conditions. To limit this risk, the Company’s senior management has established risk control limits. In addition, changes in fair value of the derivative financial instruments that the Company uses for risk management purposes are generally offset by the change in the fair value or cash flows of the hedged risk component of the related assets, liabilities or forecasted transactions.

Certain of the Company’s derivative instruments contain credit-risk-contingent termination events, cross-default provisions and credit support annex agreements. Credit-risk-contingent termination events allow the counterparties to terminate the derivative on certain dates if AIC’s, ALIC’s or Allstate Life Insurance Company of New York’s (“ALNY”) financial strength credit ratings by Moody’s or S&P fall below a certain level or in the event AIC, ALIC or ALNY are no longer rated by both Moody’s and S&P. Credit-risk-contingent cross-default provisions allow the counterparties to terminate the derivative instruments if the Company defaults by pre-determined threshold amounts on certain debt instruments. Credit-risk-contingent credit support annex agreements specify the amount of collateral the Company must post to counterparties based on AIC’s, ALIC’s or ALNY’s financial strength credit ratings by Moody’s or S&P, or in the event AIC, ALIC or ALNY are no longer rated by both Moody’s and S&P.

The following summarizes the fair value of derivative instruments with termination, cross-default or collateral credit-risk-contingent features that are in a liability position, as well as the fair value of assets and collateral that are netted against the liability in accordance with provisions within legally enforceable MNAs.

($ in millions)		June 30, 2011		December 31, 2010
Gross liability fair value of contracts containing credit-risk-contingent features	$	146	$	448
Gross asset fair value of contracts containing credit-risk-contingent features and subject to MNAs		(90)		(255)
Collateral posted under MNAs for contracts containing credit-risk-contingent features		(48)		(171)
Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently	$	8	$	22

Credit derivatives - selling protection

Free-standing credit default swaps (“CDS”) are utilized for selling credit protection against a specified credit event. A credit default swap is a derivative instrument, representing an agreement between two parties to exchange the credit risk of a specified entity (or a group of entities), or an index based on the credit risk of a group of entities (all commonly referred to as the “reference entity” or a portfolio of “reference entities”), in return for a periodic premium. In selling protection, CDS are used to replicate fixed income securities and to complement the cash market when credit exposure to certain issuers is not available or when the derivative alternative is less expensive than the cash market alternative. CDS typically have a five-year term.

The following table shows the CDS notional amounts by credit rating and fair value of protection sold as of June 30, 2011:

($ in millions)		Notional amount
		AA		A		BBB		BB and lower		Total		Fair value
Single name
Investment grade corporate debt	$	50	$	138	$	130	$	45	$	363	$	(1)
High yield debt		--		--		--		2		2		--
Municipal		135		--		--		--		135		(8)
Subtotal		185		138		130		47		500		(9)
Baskets
Tranche
Investment grade corporate debt		--		--		--		65		65		(18)
First-to-default
Municipal		--		100		--		--		100		(28)
Subtotal		--		100		--		65		165		(46)
Total	$	185	$	238	$	130	$	112	$	665	$	(55)

The following table shows the CDS notional amounts by credit rating and fair value of protection sold as of December 31, 2010:

($ in millions)		Notional amount
		AA		A		BBB		BB and lower		Total		Fair value
Single name
Investment grade corporate debt	$	50	$	148	$	103	$	25	$	326	$	(4)
High yield debt		--		--		--		6		6		--
Municipal		135		--		--		--		135		(14)
Subtotal		185		148		103		31		467		(18)
Baskets
Tranche
Investment grade corporate debt		--		--		--		65		65		(19)
First-to-default
Municipal		--		100		--		--		100		(37)
Subtotal		--		100		--		65		165		(56)
Total	$	185	$	248	$	103	$	96	$	632	$	(74)

In selling protection with CDS, the Company sells credit protection on an identified single name, a basket of names in a first-to-default (“FTD”) structure or a specific tranche of a basket, or credit derivative index (“CDX”) that is generally investment grade, and in return receives periodic premiums through expiration or termination of the agreement. With single name CDS, this premium or credit spread generally corresponds to the difference between the yield on the reference entity’s public fixed maturity cash instruments and swap rates at the time the agreement is executed. With a FTD basket or a tranche of a basket, because of the additional credit risk inherent in a basket of named reference entities, the premium generally corresponds to a high proportion of the sum of the credit spreads of the names in the basket and the correlation between the names. CDX index is utilized to take a position on multiple (generally 125) reference entities. Credit events are typically defined as bankruptcy, failure to pay, or restructuring, depending on the nature of the reference entities. If a credit event occurs, the Company settles with the counterparty, either through physical settlement or cash settlement. In a physical settlement, a reference asset is delivered by the buyer of protection to the Company, in exchange for cash payment at par, whereas in a cash settlement, the Company pays the difference between par and the prescribed value of the reference asset. When a credit event occurs in a single name or FTD basket (for FTD, the first credit event occurring for any one name in the basket), the contract terminates at the time of settlement. When a credit event occurs in a tranche of a basket, there is no immediate impact to the Company until cumulative losses in the basket exceed the contractual subordination. To date, realized losses have not exceeded the subordination. For CDX index, the reference entity’s name incurring the credit event is removed from the index while the contract continues until expiration. The maximum payout on a CDS is the contract notional amount. A physical settlement may afford the Company with recovery rights as the new owner of the asset.

The Company monitors risk associated with credit derivatives through individual name credit limits at both a credit derivative and a combined cash instrument/credit derivative level. The ratings of individual names for which protection has been sold are also monitored.

In addition to the CDS described above, the Company’s synthetic collateralized debt obligations contain embedded credit default swaps which sell protection on a basket of reference entities. The synthetic collateralized debt obligations are fully funded; therefore, the Company is not obligated to contribute additional funds when credit events occur related to the reference entities named in the embedded credit default swaps. The Company’s maximum amount at risk equals the amount of its aggregate initial investment in the synthetic collateralized debt obligations.

Reinsurance

6 Months Ended

Jun. 30, 2011

Reinsurance

Reinsurance

8. Reinsurance

Property-liability insurance premiums earned and life and annuity premiums and contract charges have been reduced by the reinsurance ceded amounts shown in the following table:

($ in millions)		Three months ended June 30,				Six months ended June 30,
		2011		2010		2011		2010
Property-liability insurance premiums earned	$	274	$	273	$	544	$	541
Life and annuity premiums and contract charges		185		202		378		393

Property-liability insurance claims and claims expense, life and annuity contract benefits and interest credited to contractholder funds have been reduced by the reinsurance ceded amounts shown in the following table.

($ in millions)		Three months ended June 30,				Six months ended June 30,
		2011		2010		2011		2010
Property-liability insurance claims and claims expense	$	61	$	111	$	198	$	191
Life and annuity contract benefits		52		219		136		349
Interest credited to contractholder funds		6		9		14		16

Company Restructuring

6 Months Ended

Jun. 30, 2011

Company Restructuring

Company Restructuring

9. Company Restructuring

The Company undertakes various programs to reduce expenses. These programs generally involve a reduction in staffing levels, and in certain cases, office closures. Restructuring and related charges include employee termination and relocation benefits, and post-exit rent expenses in connection with these programs, and non-cash charges resulting from pension benefit payments made to agents in connection with the 1999 reorganization of Allstate’s multiple agency programs to a single exclusive agency program. In the six months ended June 30, 2011, restructuring programs primarily relate to Allstate Protection’s field claim office consolidations and reorganization of technology shared services. The expenses related to these activities are included in the Condensed Consolidated Statements of Operations as restructuring and related charges, and totaled $11 million and $13 million during the three months ended June 30, 2011 and 2010, respectively, and $20 million and $24 million for the six months ended June 30, 2011 and 2010, respectively.

The following table presents changes in the restructuring liability during the six months ended June 30, 2011.

($ in millions)		Employee costs		Exit costs		Total liability
Balance as of December 31, 2010	$	13	$	3	$	16
Expense incurred		14		5		19
Adjustments to liability		(9)		--		(9)
Payments applied against liability		(9)		(2)		(11)
Balance as of June 30, 2011	$	9	$	6	$	15

The payments applied against the liability for employee costs primarily reflect severance costs, and the payments for exit costs generally consist of post-exit rent expenses and contract termination penalties. As of June 30, 2011, the cumulative amount incurred to date for active programs totaled $103 million for employee costs and $45 million for exit costs.

Guarantees and Contingent Liabilities

6 Months Ended

Jun. 30, 2011

Guarantees and Contingent Liabilities

Guarantees and Contingent Liabilities

10. Guarantees and Contingent Liabilities

State facility assessments

The Company is required to participate in assigned risk plans, reinsurance facilities and joint underwriting associations in various states that provide insurance coverage to individuals or entities that otherwise are unable to purchase such coverage from private insurers. Underwriting results related to these arrangements, which tend to be adverse, have been immaterial to the Company’s results of operations. Because of the Company’s participation, it may be exposed to losses that surpass the capitalization of these facilities and/or assessments from these facilities.

Shared markets

As a condition of maintaining its licenses to write personal property and casualty insurance in various states, the Company is required to participate in assigned risk plans, reinsurance facilities and joint underwriting associations that provide various types of insurance coverage to individuals or entities that otherwise are unable to purchase such coverage from private insurers. Underwriting results related to these arrangements, which tend to be adverse, have been immaterial to the Company’s results of operations.

Guarantees

The Company owns certain fixed income securities that obligate the Company to exchange credit risk or to forfeit principal due, depending on the nature or occurrence of specified credit events for the reference entities. In the event all such specified credit events were to occur, the Company’s maximum amount at risk on these fixed income securities, as measured by the amount of the aggregate initial investment, was $67 million as of June 30, 2011. The obligations associated with these fixed income securities expire at various dates on or before March 11, 2018.

Related to the disposal through reinsurance of substantially all of Allstate Financial’s variable annuity business to Prudential in 2006, the Company and its consolidated subsidiaries, ALIC and ALNY, have agreed to indemnify Prudential for certain pre-closing contingent liabilities (including extra-contractual liabilities of ALIC and ALNY and liabilities specifically excluded from the transaction) that ALIC and ALNY have agreed to retain. In addition, the Company, ALIC and ALNY will each indemnify Prudential for certain post-closing liabilities that may arise from the acts of ALIC, ALNY and their agents, including in connection with ALIC’s and ALNY’s provision of transition services. The reinsurance agreements contain no limitations or indemnifications with regard to insurance risk transfer, and transferred all of the future risks and responsibilities for performance on the underlying variable annuity contracts to Prudential, including those related to benefit guarantees. Management does not believe this agreement will have a material adverse effect on results of operations, cash flows or financial position of the Company.

The Company provides residual value guarantees on Company leased automobiles. If all outstanding leases were terminated effective June 30, 2011, the Company’s maximum obligation pursuant to these guarantees, assuming the automobiles have no residual value, would be $8 million as of June 30, 2011. The remaining term of each residual value guarantee is equal to the term of the underlying lease that ranges from less than one year to three years. Historically, the Company has not made any material payments pursuant to these guarantees.

In the normal course of business, the Company provides standard indemnifications to contractual counterparties in connection with numerous transactions, including acquisitions and divestitures. The types of indemnifications typically provided include indemnifications for breaches of representations and warranties, taxes and certain other liabilities, such as third party lawsuits. The indemnification clauses are often standard contractual terms and are entered into in the normal course of business based on an assessment that the risk of loss would be remote. The terms of the indemnifications vary in duration and nature. In many cases, the maximum obligation is not explicitly stated and the contingencies triggering the obligation to indemnify have not occurred and are not expected to occur. Consequently, the maximum amount of the obligation under such indemnifications is not determinable. Historically, the Company has not made any material payments pursuant to these obligations.

The aggregate liability balance related to all guarantees was not material as of June 30, 2011.

Regulation and Compliance

The Company is subject to changing social, economic and regulatory conditions. From time to time, regulatory authorities or legislative bodies seek to influence and restrict premium rates, require premium refunds to policyholders, require reinstatement of terminated policies, restrict the ability of insurers to cancel or non-renew policies, require insurers to continue to write new policies or limit their ability to write new policies, limit insurers’ ability to change coverage terms or to impose underwriting standards, impose additional regulations regarding agent and broker compensation, regulate the nature of and amount of investments, and otherwise expand overall regulation of insurance products and the insurance industry. The Company has established procedures and policies to facilitate compliance with laws and regulations, to foster prudent business operations, and to support financial reporting. The Company routinely reviews its practices to validate compliance with laws and regulations and with internal procedures and policies. As a result of these reviews, from time to time the Company may decide to modify some of its procedures and policies. Such modifications, and the reviews that led to them, may be accompanied by payments being made and costs being incurred. The ultimate changes and eventual effects of these actions on the Company’s business, if any, are uncertain.

Legal and regulatory proceedings and inquiries

The Company and certain subsidiaries are involved in a number of lawsuits, regulatory inquiries, and other legal proceedings arising out of various aspects of its business.

Background

These matters raise difficult and complicated factual and legal issues and are subject to many uncertainties and complexities, including the underlying facts of each matter; novel legal issues; variations between jurisdictions in which matters are being litigated, heard, or investigated; differences in applicable laws and judicial interpretations; the length of time before many of these matters might be resolved by settlement, through litigation, or otherwise; the fact that some of the lawsuits are putative class actions in which a class has not been certified and in which the purported class may not be clearly defined; the fact that some of the lawsuits involve multi-state class actions in which the applicable law(s) for the claims at issue is in dispute and therefore unclear; and the current challenging legal environment faced by large corporations and insurance companies.

The outcome of these matters may be affected by decisions, verdicts, and settlements, and the timing of such decisions, verdicts, and settlements, in other individual and class action lawsuits that involve the Company, other insurers, or other entities and by other legal, governmental, and regulatory actions that involve the Company, other insurers, or other entities. The outcome may also be affected by future state or federal legislation, the timing or substance of which cannot be predicted.

In the lawsuits, plaintiffs seek a variety of remedies which may include equitable relief in the form of injunctive and other remedies and monetary relief in the form of contractual and extra-contractual damages. In some cases, the monetary damages sought may include punitive or treble damages. Often specific information about the relief sought, such as the amount of damages, is not available because plaintiffs have not requested specific relief in their pleadings. When specific monetary demands are made, they are often set just below a state court jurisdictional limit in order to seek the maximum amount available in state court, regardless of the specifics of the case, while still avoiding the risk of removal to federal court. In Allstate’s experience, monetary demands in pleadings bear little relation to the ultimate loss, if any, to the Company.

In connection with regulatory examinations and proceedings, government authorities may seek various forms of relief, including penalties, restitution, and changes in business practices. The Company may not be advised of the nature and extent of relief sought until the final stages of the examination or proceeding.

Accrual and disclosure policy

The Company reviews its lawsuits, regulatory inquiries, and other legal proceedings on an ongoing basis and follows appropriate accounting guidance when making accrual and disclosure decisions. The Company establishes accruals for such matters at management’s best estimate when the Company assesses that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The Company does not establish accruals for such matters when the Company does not believe both that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The Company’s assessment of whether a loss is reasonably possible or probable is based on its assessment of the ultimate outcome of the matter following all appeals.

The Company continues to monitor its lawsuits, regulatory inquiries, and other legal proceedings for further developments that would make the loss contingency both probable and estimable, and accordingly accruable, or that could affect the amount of accruals that have been previously established. There may continue to be exposure to loss in excess of any amount accrued. Disclosure of the nature and amount of an accrual is made when there have been sufficient legal and factual developments such that the Company’s ability to resolve the matter would not be impaired by the disclosure of the amount of accrual.

When the Company assesses it is reasonably possible or probable that a loss has been incurred, it discloses the matter. When it is possible to estimate the reasonably possible loss or range of loss above the amount accrued, if any, for the matters disclosed, that estimate is aggregated and disclosed. Disclosure is not required when an estimate of the reasonably possible loss or range of loss cannot be made.

For certain of the matters described below in the “Claims related proceedings” and “Other proceedings” subsections, the Company is able to estimate the reasonably possible loss or range of loss above the amount accrued, if any. In determining whether it is possible to estimate the reasonably possible loss or range of loss, the Company reviews and evaluates the disclosed matters, in conjunction with counsel, in light of potentially relevant factual and legal developments.

These developments may include information learned through the discovery process, rulings on dispositive motions, settlement discussions, information obtained from other sources, experience from managing these and other matters, and other rulings by courts, arbitrators or others. When the Company possesses sufficient appropriate information to develop an estimate of the reasonably possible loss or range of loss above the amount accrued, if any, that estimate is aggregated and disclosed below. There may be other disclosed matters for which a loss is probable or reasonably possible but such an estimate is not possible. Disclosure of the estimate of the reasonably possible loss or range of loss above the amount accrued, if any, for any individual matter would only be considered when there have been sufficient legal and factual developments such that the Company’s ability to resolve the matter would not be impaired by the disclosure of the individual estimate.

As of June 30, 2011, the Company estimates that the aggregate range of reasonably possible loss in excess of the amount accrued, if any, for the disclosed matters where such an estimate is possible is zero to $855 million, pre-tax. This disclosure is not an indication of expected loss, if any. Under accounting guidance, an event is “reasonably possible” if “the chance of the future event or events occurring is more than remote but less than likely” and an event is “remote” if “the chance of the future event or events occurring is slight.” This estimate is based upon currently available information and is subject to significant judgment and a variety of assumptions, and known and unknown uncertainties. The matters underlying the estimate will change from time to time, and actual results may vary significantly from the current estimate. The estimate does not include matters or losses for which an estimate is not possible. Therefore, this estimate represents an estimate of possible loss only for certain matters meeting these criteria. It does not represent the Company’s maximum possible loss exposure. Information is provided below regarding the nature of all of the disclosed matters and, where specified, the amount, if any, of plaintiff claims associated with these loss contingencies.

Due to the complexity and scope of the matters disclosed in the “Claims related proceedings” and “Other proceedings” subsections below and the many uncertainties that exist, the ultimate outcome of these matters cannot be predicted. In the event of an unfavorable outcome in one or more of these matters, the ultimate liability may be in excess of amounts currently accrued, if any, and may be material to the Company’s operating results or cash flows for a particular quarterly or annual period. However, based on information currently known to it, management believes that the ultimate outcome of all matters described below, as they are resolved over time, is not likely to have a material effect on the financial position of the Company.

Claims related proceedings

The Company is vigorously defending a number of matters in various stages of development filed in the aftermath of Hurricane Katrina, including individual lawsuits and a statewide putative class action in Louisiana. The Louisiana Attorney General filed a putative class action lawsuit in state court against Allstate and every other homeowner insurer doing business in the State of Louisiana, on behalf of the State, as assignee, and on behalf of a class of Road Home fund recipients (the “Road Home Class Action”) alleging that the insurers have failed to pay all damages owed under their policies. The insurers removed the matter to federal court. The district court denied plaintiffs’ motion to remand the matter to state court and the U.S. Court of Appeals for the Fifth Circuit (“Fifth Circuit”) affirmed that ruling. The defendants filed a motion to dismiss and the plaintiffs filed a motion to remand the claims involving a Road Home subrogation agreement. In March 2009, the district court denied the State’s request that its claims be remanded to state court. As for the defendant insurers’ motion, the judge granted it in part and denied it in part. Dismissal of all of the extra-contractual claims, including the bad faith and breach of fiduciary duty claims, was granted. Dismissal also was granted of all claims based on the Valued Policy Law and all flood loss claims based on the levee breaches finding that the insurers flood exclusions precluded coverage. The remaining claims are for breach of contract and for declaratory relief on the alleged underpayment of claims by the insurers. The judge did not dismiss the class action allegations. The defendants also had moved to dismiss the complaint on grounds that the State had no standing to bring the lawsuit as an assignee of insureds because of anti-assignment language in the insurers’ policies. The judge denied the defendants’ motion for reconsideration on the assignment issue but found the matter was ripe for consideration by the federal appellate court. The defendants filed a petition for permission to appeal to the Fifth Circuit. The Fifth Circuit accepted review. After the Fifth Circuit accepted review, plaintiffs filed a motion to remand the case to state court, asserting that the class claims on which federal jurisdiction was premised have now effectively been dismissed as a result of a ruling in a related case. The Fifth Circuit denied the motion for remand, without prejudice to plaintiffs’ right to refile the motion for remand after the Fifth Circuit disposes of the pending appeal. On July 28, 2010, the Fifth Circuit issued an order stating that since there is no controlling Louisiana Supreme Court precedent on the issue of whether an insurance policy’s anti-assignment clause prohibits post-loss assignments, the Fifth Circuit is certifying that issue to the Louisiana Supreme Court. On May 10, 2011, the Louisiana Supreme Court issued its ruling, holding that the contractual prohibition on post-loss assignments does not violate public policy, and that parties can contract to prohibit post-loss assignments. However, the Court went on to hold that the contract language must clearly and unambiguously express that the non-assignment clause applies to post-loss assignments. The Supreme Court refused to evaluate the language of the various policies before it. Rather, the Court stated that it is necessary for the federal court to evaluate the relevant anti-assignment clauses on a policy-by-policy basis to determine whether the language is sufficient to prohibit post-loss assignment. The case will now be sent back to the Fifth Circuit for a determination of whether each carrier’s anti-assignment clause is sufficient to prohibit post-loss assignment.

The Company believes that its adjusting practices and processes in connection with Katrina homeowners claims were sound and in accordance with industry standards and state law. Each of the claims involved is fact-specific and requires independent analysis. There remain significant questions of Louisiana law that have yet to be decided, including the enforceability of the Company’s anti-assignment clause and certain statute of limitation (prescription) issues. Based on recent rulings by the Louisiana Supreme Court, which have been construed to extend the time period within which Katrina actions can be filed, new individual cases continue to be filed. In addition, the State has yet to identify the specific claims that it contends are at issue in the Road Home Class Action, or the alleged deficiencies in adjusting those claims. There are many potential individual claims at issue in this litigation, each of which will require individual analysis, and a number of which may be subject to individual defenses, including release, accord and satisfaction, prescription, waiver and estoppel. There has been no factual development or discovery in connection with the Road Home Class Action. The motions to dismiss have been pending since the inception of the case. No answers have been filed, and the case remains stayed until the current appeal is concluded. Moreover, the State has indicated that it intends to drop its class allegations and seek a remand to state court, which is considered to be a less favorable forum, but the dismissal of the class allegations and prosecution by the State solely on its own behalf as assignee, may on the other hand adversely impact the State’s ability to recover exemplary damages or penalties that might otherwise be sought on the underlying claim. In the Company’s judgment a loss is not probable.

The Company has settled on a 48-state basis a nationwide class action alleging that it failed to properly pay general contractors overhead and profit on many homeowners structural loss claims. General contractors’ overhead and profit is an amount that is added to payments on claims where the services of a general contractor are reasonably likely to be required. To a large degree, this lawsuit mirrored similar lawsuits filed against other carriers in the industry, some of which have settled. A class was certified for settlement purposes only, and the settlement received preliminary approval from the court on December 6, 2010 and final approval on May 6, 2011. No appeal was taken from the final approval order and the settlement is now final. Processing of class members’ claims made as part of this settlement is underway. The $75 million settlement was accrued as a prior year reserve reestimate in property-liability insurance claims and claims expense in 2010.

Allstate has been vigorously defending a lawsuit in regards to certain claims employees involving worker classification issues. This lawsuit is a certified class action challenging a state wage and hour law. In this case, plaintiffs sought actual damages in an amount to be proven at trial, liquidated damages in an amount equal to an unspecified percentage of the aggregate underpayment of wages to be proven at trial, as well as attorneys’ fees and costs. Plaintiffs have not made a settlement demand nor have they alleged the amount of damages with any specificity. The case was bifurcated between liability and damages and is currently focused only on liability issues. No discovery has taken place regarding plaintiffs’ alleged damages. In December 2009, the liability phase of the case was tried, and, on July 6, 2010, the court issued its decision finding in favor of Allstate on all claims. The plaintiffs have appealed the decision in favor of Allstate to the first level appellate court. After concluding the current appeal, the parties may seek a subsequent appeal to the Illinois Supreme Court. Only liability issues are being addressed on appeal and no damages may be awarded at this stage of the proceedings. In the event the trial court’s order were to be overturned, however, the parties would need to conduct damages discovery, and a trial on damages would have to take place, before any damages could be awarded. In the Company’s judgment a loss is not probable.

Other proceedings

The Company is defending certain matters relating to the Company’s agency program reorganization announced in 1999. Although these cases have been pending for many years, they currently are in the early stages of litigation because of appellate court proceedings and threshold procedural issues.

· These matters include a lawsuit filed in 2001 by the U.S. Equal Employment Opportunity Commission (“EEOC”) alleging retaliation under federal civil rights laws (“EEOC I”) and a class action filed in 2001 by former employee agents alleging retaliation and age discrimination under the Age Discrimination in Employment Act (“ADEA”), breach of contract and ERISA violations (“Romero I”). In 2004, in the consolidated EEOC I and Romero I litigation, the trial court issued a memorandum and order that, among other things, certified classes of agents, including a mandatory class of agents who had signed a release, for purposes of effecting the court’s declaratory judgment that the release was voidable at the option of the release signer. The court also ordered that an agent who voided the release must return to Allstate “any and all benefits received by the [agent] in exchange for signing the release.” The court also stated that, “on the undisputed facts of record, there is no basis for claims of age discrimination.” The EEOC and plaintiffs asked the court to clarify and/or reconsider its memorandum and order and in January 2007, the judge denied their request. In June 2007, the court reversed its prior ruling that the release was voidable and granted the Company’s motions for summary judgment, ruling that the asserted claims were barred by the release signed by most plaintiffs. Plaintiffs filed a notice of appeal with the U.S. Court of Appeals for the Third Circuit (“Third Circuit”). In July 2009, the Third Circuit vacated the trial court’s entry of summary judgment in the Company’s favor and remanded the cases to the trial court for additional discovery, including additional discovery related to the validity of the release and waiver. In its opinion, the Third Circuit held that if the release and waiver is held to be valid, then all of the claims in Romero I and EEOC I are barred. Thus, if the waiver and release is upheld, then only the claims in Romero I asserted by the small group of employee agents who did not sign the release and waiver would remain for adjudication. In January 2010, following the remand, the cases were assigned to a new judge for further proceedings in the trial court. Plaintiffs filed their Second Amended Complaint on July 28, 2010. Plaintiffs seek broad but unspecified “make whole relief,” including back pay, compensatory and punitive damages, liquidated damages, lost investment capital, attorneys’ fees and costs, and equitable relief, including reinstatement to employee agent status with all attendant benefits for up to approximately 6,500 former employee agents. Despite the length of time that these matters have been pending, to date only limited discovery has occurred related to the damages claimed by individual plaintiffs, and no damages discovery has occurred related to the claims of the putative class. Nor have plaintiffs provided any calculations of the putative class’s alleged back pay or the alleged liquidated, compensatory or punitive damages, instead asserting that such calculations will be provided at a later stage during expert discovery. Damage claims are subject to reduction by amounts and benefits received by plaintiffs and putative class members subsequent to their employment termination. Little to no discovery has occurred with respect to amounts earned or received by plaintiffs and putative class members in mitigation of their alleged losses. Alleged damage amounts and lost benefits of the approximately 6,500 putative class members also are subject to individual variation and determination dependent upon retirement dates, participation in employee benefit programs, and years of service. Discovery limited to the validity of the waiver and release is in process. At present, no class is certified. Summary judgment proceedings on the validity of the waiver and release are expected to occur in early 2012.

· A putative nationwide class action has also been filed by former employee agents alleging various violations of ERISA, including a worker classification issue (“Romero II”). These plaintiffs are challenging certain amendments to the Agents Pension Plan and are seeking to have exclusive agent independent contractors treated as employees for benefit purposes. Romero II was dismissed with prejudice by the trial court, was the subject of further proceedings on appeal, and was reversed and remanded to the trial court in 2005. In June 2007, the court granted the Company’s motion to dismiss the case. Plaintiffs filed a notice of appeal with the Third Circuit. In July 2009, the Third Circuit vacated the district court’s dismissal of the case and remanded the case to the trial court for additional discovery, and directed that the case be reassigned to another trial court judge. In its opinion, the Third Circuit held that if the release and waiver is held to be valid, then one of plaintiffs’ three claims asserted in Romero II is barred. The Third Circuit directed the district court to consider on remand whether the other two claims asserted in Romero II are barred by the release and waiver. In January 2010, following the remand, the case was assigned to a new judge (the same judge for the Romero I and EEOC I cases) for further proceedings in the trial court. On April 23, 2010, plaintiffs filed their First Amended Complaint. Plaintiffs seek broad but unspecified “make whole” or other equitable relief, including losses of income and benefits as a result of their decision to retire from the Company between November 1, 1999 and December 31, 2000. They also seek repeal of the challenged amendments to the Agents Pension Plan with all attendant benefits revised and recalculated for thousands of former employee agents, and attorney’s fees and costs. Despite the length of time that this matter has been pending, to date only limited discovery has occurred related to the damages claimed by individual plaintiffs, and no damages discovery has occurred related to the claims of the putative class. Nor have plaintiffs provided any calculations of the putative class’s alleged losses, instead asserting that such calculations will be provided at a later stage during expert discovery. Damage claims are subject to reduction by amounts and benefits received by plaintiffs and putative class members subsequent to their employment termination. Little to no discovery has occurred with respect to amounts earned or received by plaintiffs and putative class members in mitigation of their alleged losses. Alleged damage amounts and lost benefits of the approximately 6,500 putative class members also are subject to individual variation and determination dependent upon retirement dates, participation in employee benefit programs, and years of service. As in Romero I and EEOC I, discovery at this time is limited to issues relating to the validity of the waiver and release. Class certification has not been decided. Summary judgment proceedings on the validity of the waiver and release are expected to occur in early 2012.

In these agency program reorganization matters, the threshold issue of the validity and scope of the waiver and release is yet to be decided and, if decided in favor of the Company, would preclude any damages being awarded in Romero I and EEOC I and may also preclude damages from being awarded in Romero II. In the Company’s judgment a loss is not probable. Allstate has been vigorously defending these lawsuits and other matters related to its agency program reorganization.

Other Matters

Various other legal, governmental, and regulatory actions, including state market conduct exams, and other governmental and regulatory inquiries are currently pending that involve the Company and specific aspects of its conduct of business. Like other members of the insurance industry, the Company is the target of a number of class action lawsuits and other types of proceedings, some of which involve claims for substantial or indeterminate amounts. These actions are based on a variety of issues and target a range of the Company’s practices. The outcome of these disputes is currently unpredictable; however it is not likely, they will have a material effect on the consolidated financial statements of the Company.

Asbestos and environmental

Allstate’s reserves for asbestos claims were $1.09 billion and $1.10 billion, net of reinsurance recoverables of $529 million and $555 million, as of June 30, 2011 and December 31, 2010, respectively. Reserves for environmental claims were $192 million and $201 million, net of reinsurance recoverables of $44 million and $47 million, as of June 30, 2011 and December 31, 2010, respectively. Approximately 61% and 60% of the total net asbestos and environmental reserves as of June 30, 2011 and December 31, 2010, respectively, were for incurred but not reported estimated losses.

Management believes its net loss reserves for asbestos, environmental and other discontinued lines exposures are appropriately established based on available facts, technology, laws and regulations. However, establishing net loss reserves for asbestos, environmental and other discontinued lines claims is subject to uncertainties that are much greater than those presented by other types of claims. The ultimate cost of losses may vary materially from recorded amounts, which are based on management’s best estimate. Among the complications are lack of historical data, long reporting delays, uncertainty as to the number and identity of insureds with potential exposure and unresolved legal issues regarding policy coverage; unresolved legal issues regarding the determination, availability and timing of exhaustion of policy limits; plaintiffs’ evolving and expanding theories of liability; availability and collectability of recoveries from reinsurance; retrospectively determined premiums and other contractual agreements; estimates of the extent and timing of any contractual liability; the impact of bankruptcy protection sought by various asbestos producers and other asbestos defendants; and other uncertainties. There are also complex legal issues concerning the interpretation of various insurance policy provisions and whether those losses are covered, or were ever intended to be covered, and could be recoverable through retrospectively determined premium, reinsurance or other contractual agreements. Courts have reached different and sometimes inconsistent conclusions as to when losses are deemed to have occurred and which policies provide coverage; what types of losses are covered; whether there is an insurer obligation to defend; how policy limits are determined; how policy exclusions and conditions are applied and interpreted; and whether clean-up costs represent insured property damage. Management believes these issues are not likely to be resolved in the near future, and the ultimate costs may vary materially from the amounts currently recorded resulting in material changes in loss reserves. In addition, while the Company believes that improved actuarial techniques and databases have assisted in its ability to estimate asbestos, environmental, and other discontinued lines net loss reserves, these refinements may subsequently prove to be inadequate indicators of the extent of probable losses. Due to the uncertainties and factors described above, management believes it is not practicable to develop a meaningful range for any such additional net loss reserves that may be required.

Components of Net Periodic Pension and Postretirement Benefit Costs

6 Months Ended

Jun. 30, 2011

Components of Net Periodic Pension and Postretirement Benefit Costs

Components of Net Periodic Pension and Postretirement Benefit Costs

11. Components of Net Periodic Pension and Postretirement Benefit Costs

The components of net periodic cost for the Company’s pension and postretirement benefit plans are as follows:

($ in millions)		Three months ended June 30,				Six months ended June 30,
		2011		2010		2011		2010

Pension benefits
Service cost	$	38	$	37	$	76	$	75
Interest cost		80		80		161		160
Expected return on plan assets		(92)		(82)		(184)		(165)
Amortization of:
Prior service credit		(1)		--		(1)		(1)
Net actuarial loss		39		39		77		79
Settlement loss		8		13		17		26
Net periodic pension cost	$	72	$	87	$	146	$	174

Postretirement benefits
Service cost	$	3	$	3	$	6	$	6
Interest cost		9		10		18		20
Amortization of:
Prior service credit		(5)		(5)		(11)		(11)
Net actuarial gain		(8)		(6)		(15)		(11)
Net periodic postretirement benefit cost	$	(1)	$	2	$	(2)	$	4

- Definition

Description containing the entire pension and other postretirement benefits disclosure as a single block of text.

+ References

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

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 158

-Paragraph 7, 21, 22

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

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5, 6, 7, 8

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 8

-Subparagraph m

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

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 106

-Paragraph 518

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 87

-Paragraph 264

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

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph b

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph a

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph h

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

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph q

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name FASB Staff Position (FSP)

-Number FAS106-2

-Paragraph 20, 21, 22

Reference 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Emerging Issues Task Force (EITF)

-Number 03-2

-Paragraph 8

Reference 12: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Principles Board Opinion (APB)

-Number 30

-Paragraph 26

Reference 13: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Implementation Guide (Q and A)

-Number FAS88

-Paragraph 63

+ Details

Business Segments

6 Months Ended

Jun. 30, 2011

Business Segments

Business Segments

12. Business Segments

Summarized revenue data for each of the Company’s business segments are as follows:

($ in millions)		Three months ended June 30,						Six months ended June 30,
		2011			2010			2011			2010
Revenues
Property-Liability
Property-liability insurance premiums
Standard auto	$	4,093		$	4,154		$	8,181		$	8,291
Non-standard auto		206			230			417			464
Total auto		4,299			4,384			8,598			8,755
Homeowners		1,548			1,512			3,087			3,028
Other personal lines		610			617			1,221			1,233
Allstate Protection		6,457			6,513			12,906			13,016
Discontinued Lines and Coverages		--			--			(1	)		--
Total property-liability insurance premiums		6,457			6,513			12,905			13,016
Net investment income		310			310			594			614
Realized capital gains and losses		(8	)		(106	)		49			(296	)
Total Property-Liability		6,759			6,717			13,548			13,334

Allstate Financial
Life and annuity premiums and contract charges
Traditional life insurance		109			104			217			210
Immediate annuities with life contingencies		15			31			58			58
Accident and health insurance		162			151			323			307
Total life and annuity premiums		286			286			598			575
Interest-sensitive life insurance		253			249			501			491
Fixed annuities		8			10			17			23
Total contract charges		261			259			518			514
Total life and annuity premiums and contract charges		547			545			1,116			1,089
Net investment income		694			723			1,378			1,454
Realized capital gains and losses		62			(353	)		101			(515	)
Total Allstate Financial		1,303			915			2,595			2,028

Corporate and Other
Service fees		2			3			4			6
Net investment income		16			16			30			31
Realized capital gains and losses		3			8			3			12
Total Corporate and Other before reclassification of service fees		21			27			37			49
Reclassification of service fees (1)		(2	)		(3	)		(4	)		(6	)
Total Corporate and Other		19			24			33			43
Consolidated revenues	$	8,081		$	7,656		$	16,176		$	15,405

(1) For presentation in the Condensed Consolidated Statements of Operations, service fees of the Corporate and Other segment are reclassified to operating costs and expenses.

Summarized financial performance data for each of the Company’s reportable segments are as follows:

($ in millions)		Three months ended June 30,						Six months ended June 30,
		2011			2010			2011			2010
Net income
Property-Liability
Underwriting (loss) income
Allstate Protection	$	(1,498	)	$	209		$	(1,165	)	$	284
Discontinued Lines and Coverages		(4	)		(2	)		(10	)		(6	)
Total underwriting (loss) income		(1,502	)		207			(1,175	)		278
Net investment income		310			310			594			614
Income tax benefit (expense) on operations		460			(149	)		279			(237	)
Realized capital gains and losses, after-tax		(6	)		(69	)		32			(192	)
Property-Liability net (loss) income		(738	)		299			(270	)		463

Allstate Financial
Life and annuity premiums and contract charges		547			545			1,116			1,089
Net investment income		694			723			1,378			1,454
Periodic settlements and accruals on non-hedge derivative financial instruments		19			11			36			28
Contract benefits and interest credited to contractholder funds		(834	)		(935	)		(1,713	)		(1,840	)
Operating costs and expenses and amortization of deferred policy acquisition costs		(213	)		(157	)		(435	)		(335	)
Restructuring and related charges		--			1			2			1
Income tax expense on operations		(72	)		(63	)		(127	)		(133	)
Operating income		141			125			257			264
Realized capital gains and losses, after-tax		40			(230	)		65			(335	)
Valuation changes on embedded derivatives that are not hedged, after-tax		(3	)		--			5			--
DAC and DSI (amortization) accretion related to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax		(5	)		4			(31	)		2
DAC and DSI unlocking related to realized capital gains and losses, after-tax		--			--			1			(18	)
Reclassification of periodic settlements and accruals on non-hedge financial instruments, after-tax		(11	)		(7	)		(23	)		(18	)
Gain (loss) on disposition of operations, after-tax		4			1			(11	)		2
Allstate Financial net income (loss)		166			(107	)		263			(103	)

Corporate and Other
Service fees (1)		2			3			4			6
Net investment income		16			16			30			31
Operating costs and expenses (1)		(100	)		(104	)		(193	)		(204	)
Income tax benefit on operations		32			33			63			65
Operating loss		(50	)		(52	)		(96	)		(102	)
Realized capital gains and losses, after-tax		2			5			2			7
Corporate and Other net loss		(48	)		(47	)		(94	)		(95	)
Consolidated net (loss) income	$	(620	)	$	145		$	(101	)	$	265

(1) For presentation in the Condensed Consolidated Statements of Operations, service fees of the Corporate and Other segment are reclassified to operating costs and expenses.

Other Comprehensive Income

6 Months Ended

Jun. 30, 2011

Other Comprehensive Income

Other Comprehensive Income

13. Other Comprehensive Income

The components of other comprehensive (loss) income on a pre-tax and after-tax basis are as follows:

($ in millions)		Three months ended June 30,
		2011						2010
		Pre-tax		Tax		After- tax		Pre-tax		Tax		After- tax
Unrealized net holding gains and losses arising during the period, net of related offsets	$	676	$	(237)	$	439	$	492	$	(172)	$	320
Less: reclassification adjustment of realized capital gains and losses		111		(39)		72		(142)		50		(92)
Unrealized net capital gains and losses		565		(198)		367		634		(222)		412
Unrealized foreign currency translation adjustments		7		(3)		4		(27)		10		(17)
Unrecognized pension and other postretirement benefit cost		24		(7)		17		31		(10)		21
Other comprehensive income	$	596	$	(208)		388	$	638	$	(222)		416
Net (loss) income						(620)						145
Comprehensive (loss) income					$	(232)					$	561

		Six months ended June 30,
		2011						2010
		Pre-tax		Tax		After- tax		Pre-tax		Tax		After- tax
Unrealized net holding gains and losses arising during the period, net of related offsets	$	1,044	$	(366)	$	678	$	1,574	$	(550)	$	1,024
Less: reclassification adjustment of realized capital gains and losses		257		(90)		167		(268)		94		(174)
Unrealized net capital gains and losses		787		(276)		511		1,842		(644)		1,198
Unrealized foreign currency translation adjustments		22		(8)		14		(5)		2		(3)
Unrecognized pension and other postretirement benefit cost		47		(15)		32		57		(19)		38
Other comprehensive income	$	856	$	(299)		557	$	1,894	$	(661)		1,233
Net (loss) income						(101)						265
Comprehensive income					$	456					$	1,498

- Definition

This label may include the following: 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income. Components of comprehensive income include: (1) foreign currency translation adjustments; (2) gains and losses on foreign currency transactions that are designated as, and are effective as, economic hedges of a net investment in a foreign entity; (3) gains and losses on intercompany foreign currency transactions that are of a long-term-investment nature, when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting enterprise's financial statements; (4) change in the market value of a futures contract that qualifies as a hedge of an asset reported at fair value; (5) unrealized holding gains and losses on available-for-sale securities and that resulting from transfers of debt securities from the held-to-maturity category to the available-for-sale category; (6) a net loss recognized as an additional pension liability not yet recognized as net periodic pension cost; and (7) the net gain or loss and net prior service cost or credit for pension plans and other postretirement benefit plans.

+ References+ Details

Earnings per share (Tables)

6 Months Ended

Jun. 30, 2011

Earnings per share

Computation of basic and diluted earnings per share

($ in millions, except per share data)		Three months ended June 30,					Six months ended June 30,
		2011			2010		2011			2010
Numerator:
Net (loss) income	$	(620	)	$	145	$	(101	)	$	265

Denominator:
Weighted average common shares outstanding		523.1			540.7		528.2			540.4
Effect of dilutive potential common shares:
Stock options		--			2.1		--			2.0
Restricted stock units (non-participating)		--			0.2		--			--
Weighted average common and dilutive potential common shares outstanding		523.1			543.0		528.2			542.4

Earnings per share - Basic	$	(1.19	)	$	0.27	$	(0.19	)	$	0.49
Earnings per share - Diluted	$	(1.19	)	$	0.27	$	(0.19	)	$	0.49

Supplemental Cash Flow Information (Tables)

6 Months Ended

Jun. 30, 2011

Supplemental Cash Flow Information

Schedule of supplemental cashflow information from collateralized securities received

($ in millions)		Six months ended June 30,
		2011			2010
Net change in proceeds managed
Net change in short-term investments	$	(421	)	$	211
Operating cash flow (used) provided		(421	)		211
Net change in cash		(2	)		2
Net change in proceeds managed	$	(423	)	$	213

Net change in liabilities
Liabilities for collateral, beginning of year	$	(484	)	$	(658	)
Liabilities for collateral, end of period		(907	)		(445	)
Operating cash flow provided (used)	$	423		$	(213	)

Investments (Tables)

6 Months Ended

Jun. 30, 2011

Investments.

Schedule for fixed income securities at amortized cost, gross unrealized gains and losses and fair value

($ in millions)		Amortized		Gross unrealized					Fair
		cost		Gains		Losses			value
June 30, 2011
U.S. government and agencies	$	5,872	$	318	$	(3	)	$	6,187
Municipal		14,557		491		(375	)		14,673
Corporate		40,610		2,014		(255	)		42,369
Foreign government		2,720		327		(4	)		3,043
Residential mortgage-backed securities (“RMBS”)		6,356		203		(569	)		5,990
Commercial mortgage-backed securities (“CMBS”)		2,083		57		(154	)		1,986
Asset-backed securities (“ABS”)		4,281		95		(234	)		4,142
Redeemable preferred stock		23		1		--			24
Total fixed income securities	$	76,502	$	3,506	$	(1,594	)	$	78,414

December 31, 2010
U.S. government and agencies	$	8,320	$	327	$	(51	)	$	8,596
Municipal		16,201		379		(646	)		15,934
Corporate		36,260		1,816		(421	)		37,655
Foreign government		2,821		347		(10	)		3,158
RMBS		8,509		216		(732	)		7,993
CMBS		2,213		58		(277	)		1,994
ABS		4,425		113		(294	)		4,244
Redeemable preferred stock		37		1		--			38
Total fixed income securities	$	78,786	$	3,257	$	(2,431	)	$	79,612

Schedule for fixed income securities based on contractual maturities

The scheduled maturities for fixed income securities are as follows as of June 30, 2011:

($ in millions)		Amortized		Fair
		cost		value
Due in one year or less	$	2,921	$	2,965
Due after one year through five years		24,089		25,112
Due after five years through ten years		19,237		20,311
Due after ten years		19,618		19,894
		65,865		68,282
RMBS and ABS		10,637		10,132
Total	$	76,502	$	78,414

Schedule of net investment income

($ in millions)		Three months ended June 30,						Six months ended June 30,
		2011			2010			2011			2010
Fixed income securities	$	899		$	955		$	1,799		$	1,914
Equity securities		34			25			53			46
Mortgage loans		87			99			176			203
Limited partnership interests		18			7			28			13
Short-term investments		1			2			3			4
Other		26			6			37			7
Investment income, before expense		1,065			1,094			2,096			2,187
Investment expense		(45	)		(45	)		(94	)		(88	)
Net investment income	$	1,020		$	1,049		$	2,002		$	2,099

Schedule of realized capital gains and losses by asset type

($ in millions)		Three months ended June 30,						Six months ended June 30,
		2011			2010			2011			2010
Fixed income securities	$	39		$	(188	)	$	12		$	(324	)
Equity securities		15			45			137			59
Mortgage loans		(3	)		(28	)		(9	)		(53	)
Limited partnership interests		53			26			121			5
Derivatives		(53	)		(308	)		(120	)		(493	)
Other		6			2			12			7
Realized capital gains and losses	$	57		$	(451	)	$	153		$	(799	)

Schedule of realized capital gains and losses by transaction type

($ in millions)		Three months ended June 30,						Six months ended June 30,
		2011			2010			2011			2010
Impairment write-downs	$	(70	)	$	(239	)	$	(184	)	$	(462	)
Change in intent write-downs		(16	)		(67	)		(85	)		(99	)
Net other-than-temporary impairment losses recognized in earnings		(86	)		(306	)		(269	)		(561	)
Sales		141			145			424			233
Valuation of derivative instruments		(50	)		(283	)		(28	)		(438	)
Settlements of derivative instruments		(3	)		(27	)		(92	)		(57	)
Equity method of accounting (“EMA”) limited partnership income		55			20			118			24
Realized capital gains and losses	$	57		$	(451	)	$	153		$	(799	)

Schedule of other-than-temporary impairment losses by asset type

($ in millions)		Three months ended June 30, 2011									Six months ended June 30, 2011
		Gross			Included in OCI			Net			Gross			Included in OCI			Net
Fixed income securities:
Municipal	$	(15	)	$	(1	)	$	(16	)	$	(42	)	$	(3	)	$	(45	)
Corporate		--			--			--			(5	)		1			(4	)
Foreign government		--			--			--			(1	)		--			(1	)
RMBS		(35	)		--			(35	)		(107	)		(25	)		(132	)
CMBS		(10	)		(3	)		(13	)		(26	)		(7	)		(33	)
ABS		--			--			--			(7	)		3			(4	)
Total fixed income securities		(60	)		(4	)		(64	)		(188	)		(31	)		(219	)
Equity securities		(13	)		--			(13	)		(33	)		--			(33	)
Mortgage loans		(7	)		--			(7	)		(13	)		--			(13	)
Limited partnership interests		(1	)		--			(1	)		(2	)		--			(2	)
Other		(1	)		--			(1	)		(2	)		--			(2	)
Other-than-temporary impairment losses	$	(82	)	$	(4	)	$	(86	)	$	(238	)	$	(31	)	$	(269	)

		Three months ended June 30, 2010									Six months ended June 30, 2010
		Gross			Included in OCI			Net			Gross			Included in OCI			Net
Fixed income securities:
Municipal	$	(68	)	$	4		$	(64	)	$	(105	)	$	4		$	(101	)
Corporate		(6	)		(1	)		(7	)		(53	)		2			(51	)
RMBS		(124	)		5			(119	)		(212	)		(2	)		(214	)
CMBS		(17	)		(11	)		(28	)		(43	)		(11	)		(54	)
ABS		(6	)		(15	)		(21	)		(9	)		(16	)		(25	)
Total fixed income securities		(221	)		(18	)		(239	)		(422	)		(23	)		(445	)
Equity securities		(31	)		--			(31	)		(37	)		--			(37	)
Mortgage loans		(28	)		--			(28	)		(47	)		--			(47	)
Limited partnership interests		(8	)		--			(8	)		(32	)		--			(32	)
Other-than-temporary impairment losses	$	(288	)	$	(18	)	$	(306	)	$	(538	)	$	(23	)	$	(561	)

Schedule of other-than-temporary impairment losses on fixed income securities included in Accumulated Other Comprehensive Income

($ in millions)		June 30, 2011			December 31, 2010
Municipal	$	(13	)	$	(27	)
Corporate		(32	)		(31	)
RMBS		(411	)		(467	)
CMBS		(11	)		(49	)
ABS		(22	)		(41	)
Total	$	(489	)	$	(615	)

Schedule of credit losses on fixed income securities recognized in earnings

($ in millions)		Three months ended June 30,						Six months ended June 30,
		2011			2010			2011			2010
Beginning balance	$	(963	)	$	(1,236	)	$	(1,046	)	$	(1,187	)
Additional credit loss for securities previously other-than-temporarily impaired		(31	)		(101	)		(90	)		(180	)
Additional credit loss for securities not previously other-than-temporarily impaired		(17	)		(71	)		(44	)		(172	)
Reduction in credit loss for securities disposed or collected		94			95			247			226
Reduction in credit loss for securities the Company has made the decision to sell or more likely than not will be required to sell		--			1			15			1
Change in credit loss due to accretion of increase in cash flows		5			3			6			3
Ending balance	$	(912	)	$	(1,309	)	$	(912	)	$	(1,309	)

Schedule of unrealized net capital gains and losses

($ in millions)		Fair			Gross unrealized				Unrealized net
June 30, 2011		value			Gains		Losses		gains (losses)
Fixed income securities	$	78,414		$	3,506	$	(1,594	)	$	1,912
Equity securities		4,954			705		(80	)		625
Short-term investments		2,536			--		--			--
Derivative instruments (1)		(31	)		--		(36	)		(36	)
EMA limited partnership interests (2)										7
Unrealized net capital gains and losses, pre-tax										2,508
Amounts recognized for:
Insurance reserves (3)										(217	)
DAC and DSI (4)										(61	)
Amounts recognized										(278	)
Deferred income taxes										(784	)
Unrealized net capital gains and losses, after-tax									$	1,446

(1)	Included in the fair value of derivative instruments are $(5) million classified as assets and $26 million classified as liabilities.
(2)	Unrealized net capital gains and losses for limited partnership interests represent the Company’s share of EMA limited partnerships’ other comprehensive income. Fair value and gross gains and losses are not applicable.
(3)	The insurance reserves adjustment represents the amount by which the reserve balance would increase if the net unrealized gains in the applicable product portfolios were realized and reinvested at current lower interest rates, resulting in a premium deficiency. Although the Company evaluates premium deficiencies on the combined performance of life insurance and immediate annuities with life contingencies, the adjustment primarily relates to structured settlement annuities with life contingencies, in addition to annuity buy-outs and certain payout annuities with life contingencies.
(4)	The DAC and DSI adjustment balance represents the amount by which the amortization of DAC and DSI would increase or decrease if the unrealized gains or losses in the respective product portfolios were realized.

		Fair			Gross unrealized				Unrealized net
December 31, 2010		value			Gains		Losses		gains (losses)
Fixed income securities	$	79,612		$	3,257	$	(2,431	)	$	826
Equity securities		4,811			646		(63	)		583
Short-term investments		3,279			--		--			--
Derivative instruments (1)		(17	)		2		(24	)		(22	)
Unrealized net capital gains and losses, pre-tax										1,387
Amounts recognized for:
Insurance reserves										(41	)
DAC and DSI										97
Amounts recognized										56
Deferred income taxes										(508	)
Unrealized net capital gains and losses, after-tax									$	935

(1)	Included in the fair value of derivative instruments are $2 million classified as assets and $19 million classified as liabilities.

Schedule of change in unrealized net capital gains and losses

The change in unrealized net capital gains and losses for the six months ended June 30, 2011 is as follows:

($ in millions)

Fixed income securities	$	1,086
Equity securities		42
Derivative instruments		(14	)
EMA limited partnership interests		7
Total		1,121
Amounts recognized for:
Insurance reserves		(176	)
DAC and DSI		(158	)
Amounts recognized		(334	)
Deferred income taxes		(276	)
Increase in unrealized net capital gains and losses	$	511

Schedule of gross unrealized losses, fair value and maturity of available for sale securities

($ in millions)	Less than 12 months						12 months or more							Total
	Number		Fair		Unrealized		Number		Fair		Unrealized			unrealized
	of issues		value		losses		of issues		value		losses			losses
June 30, 2011
Fixed income securities
U.S. government and agencies	9	$	198	$	(3	)	--	$	--	$	--		$	(3	)
Municipal	417		1,985		(75	)	357		2,222		(300	)		(375	)
Corporate	385		4,980		(95	)	113		1,552		(160	)		(255	)
Foreign government	25		114		(4	)	--		--		--			(4	)
RMBS	120		368		(12	)	296		1,338		(557	)		(569	)
CMBS	29		314		(16	)	75		609		(138	)		(154	)
ABS	30		441		(5	)	121		1,235		(229	)		(234	)
Total fixed income securities	1,015		8,400		(210	)	962		6,956		(1,384	)		(1,594	)
Equity securities	895		666		(60	)	87		73		(20	)		(80	)
Total fixed income and equity securities	1,910	$	9,066	$	(270	)	1,049	$	7,029	$	(1,404	)	$	(1,674	)

Investment grade fixed income securities	836	$	6,786	$	(156	)	618	$	4,665	$	(607	)	$	(763	)
Below investment grade fixed income securities	179		1,614		(54	)	344		2,291		(777	)		(831	)
Total fixed income securities	1,015	$	8,400	$	(210	)	962	$	6,956	$	(1,384	)	$	(1,594	)

December 31, 2010
Fixed income securities
U.S. government and agencies	32	$	2,081	$	(51	)	--	$	--	$	--		$	(51	)
Municipal	847		4,130		(175	)	411		2,715		(471	)		(646	)
Corporate	438		5,994		(186	)	150		1,992		(235	)		(421	)
Foreign government	33		277		(9	)	1		10		(1	)		(10	)
RMBS	280		583		(12	)	422		1,939		(720	)		(732	)
CMBS	14		158		(3	)	114		835		(274	)		(277	)
ABS	68		762		(8	)	133		1,313		(286	)		(294	)
Total fixed income securities	1,712		13,985		(444	)	1,231		8,804		(1,987	)		(2,431	)
Equity securities	773		610		(48	)	44		91		(15	)		(63	)
Total fixed income and equity securities	2,485	$	14,595	$	(492	)	1,275	$	8,895	$	(2,002	)	$	(2,494	)

Investment grade fixed income securities	1,607	$	13,280	$	(408	)	857	$	6,217	$	(943	)	$	(1,351	)
Below investment grade fixed income securities	105		705		(36	)	374		2,587		(1,044	)		(1,080	)
Total fixed income securities	1,712	$	13,985	$	(444	)	1,231	$	8,804	$	(1,987	)	$	(2,431	)

Carrying value of non-impaired fixed and variable rate mortgage loans by debt service coverage ratio distribution

($ in millions)		June 30, 2011						December 31, 2010
Debt service coverage ratio distribution		Fixed rate mortgage loans		Variable rate mortgage loans		Total		Fixed rate mortgage loans		Variable rate mortgage loans		Total
Below 1.0	$	327	$	--	$	327	$	280	$	--	$	280
1.0 - 1.25		1,622		--		1,622		1,583		16		1,599
1.26 - 1.50		1,672		26		1,698		1,520		5		1,525
Above 1.50		2,740		266		3,006		2,540		546		3,086
Total non-impaired mortgage loans	$	6,361	$	292	$	6,653	$	5,923	$	567	$	6,490

Net carrying value of impaired mortgage loans

($ in millions)		June 30, 2011		December 31, 2010
Impaired mortgage loans with a valuation allowance	$	153	$	168
Impaired mortgage loans without a valuation allowance		21		21
Total impaired mortgage loans	$	174	$	189
Valuation allowance on impaired mortgage loans	$	68	$	84

Valuation allowance on impaired mortgage loans

($ in millions)		Three months ended June 30, 2011			Six months ended June 30, 2011
Beginning balance	$	77		$	84
Net increase in valuation allowance		7			13
Charge offs		(16	)		(29	)
Ending balance	$	68		$	68

Carrying value of past due mortgage loans

($ in millions)		June 30, 2011		December 31, 2010
Less than 90 days past due	$	27	$	12
90 days or greater past due		48		78
Total past due		75		90
Current loans		6,752		6,589
Total mortgage loans	$	6,827	$	6,679

Fair Value Of Assets And Liabilities (Tables)

6 Months Ended

Jun. 30, 2011

Fair Value of Assets and Liabilities

Schedule of assets and liabilities that are measured at fair value on a recurring and non-recurring basis

($ in millions)		Quoted prices in active markets for identical assets		Significant other observable inputs		Significant unobservable inputs		Counterparty and cash collateral		Balance as of June 30,
		(Level 1)		(Level 2)		(Level 3)		netting		2011
Assets
Fixed income securities:
U.S. government and agencies	$	4,298	$	1,889	$	--			$	6,187
Municipal		--		13,119		1,554				14,673
Corporate		--		40,649		1,720				42,369
Foreign government		--		3,043		--				3,043
RMBS		--		4,796		1,194				5,990
CMBS		--		1,048		938				1,986
ABS		--		1,975		2,167				4,142
Redeemable preferred stock		--		23		1				24
Total fixed income securities		4,298		66,542		7,574				78,414
Equity securities		4,248		664		42				4,954
Short-term investments		271		2,265		--				2,536
Other investments:
Free-standing derivatives		--		425		22	$	(99)		348
Separate account assets		8,175		--		--				8,175
Other assets		2		--		1				3
Total recurring basis assets		16,994		69,896		7,639		(99)		94,430
Non-recurring basis (1)		--		--		62				62
Total assets at fair value	$	16,994	$	69,896	$	7,701	$	(99)	$	94,492
% of total assets at fair value		18.0 %		74.0 %		8.1 %		(0.1) %		100.0 %

Liabilities
Contractholder funds:
Derivatives embedded in life and annuity contracts	$	--	$	--	$	(629)			$	(629)
Other liabilities:
Free-standing derivatives		--		(217)		(78)	$	95		(200)
Total liabilities at fair value	$	--	$	(217)	$	(707)	$	95	$	(829)
% of total liabilities at fair value		-- %		26.2 %		85.3 %		(11.5) %		100.0 %

($ in millions)		Quoted prices in active markets for identical assets		Significant other observable inputs		Significant unobservable inputs		Counterparty and cash collateral		Balance as of December 31,
		(Level 1)		(Level 2)		(Level 3)		netting		2010
Assets
Fixed income securities:
U.S. government and agencies	$	4,976	$	3,620	$	--			$	8,596
Municipal		--		13,918		2,016				15,934
Corporate		--		35,747		1,908				37,655
Foreign government		--		3,158		--				3,158
RMBS		--		6,199		1,794				7,993
CMBS		--		1,071		923				1,994
ABS		--		1,827		2,417				4,244
Redeemable preferred stock		--		37		1				38
Total fixed income securities		4,976		65,577		9,059				79,612
Equity securities		4,316		432		63				4,811
Short-term investments		174		3,105		--				3,279
Other investments:
Free-standing derivatives		--		651		74	$	(286)		439
Separate account assets		8,676		--		--				8,676
Other assets		--		--		1				1
Total recurring basis assets		18,142		69,765		9,197		(286)		96,818
Non-recurring basis (1)		--		--		120				120
Total assets at fair value	$	18,142	$	69,765	$	9,317	$	(286)	$	96,938
% of total assets at fair value		18.7 %		72.0 %		9.6 %		(0.3) %		100.0 %

Liabilities
Contractholder funds:
Derivatives embedded in life and annuity contracts	$	--	$	--	$	(653)			$	(653)
Other liabilities:
Free-standing derivatives		(2)		(529)		(95)	$	263		(363)
Total liabilities at fair value	$	(2)	$	(529)	$	(748)	$	263	$	(1,016)
% of total liabilities at fair value		0.2 %		52.1 %		73.6 %		(25.9) %		100.0 %

Schedule of the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis

($ in millions)				Total realized and unrealized gains (losses) included in:
		Balance as of March 31, 2011		Net income (1)		OCI on Statement of Financial Position		Transfers into Level 3		Transfers out of Level 3
Assets
Fixed income securities:
Municipal	$	1,864	$	(13)	$	45	$	--	$	(22)
Corporate		2,035		23		8		87		(117)
RMBS		1,398		(26)		1		--		(68)
CMBS		995		(21)		4		10		(10)
ABS		2,091		11		12		--		(9)
Redeemable preferred stock		1		--		--		--		--
Total fixed income securities		8,384		(26)		70		97		(226)
Equity securities		43		--		--		--		--
Other investments:
Free-standing derivatives, net		(71)		(3)		--		--		--
Other assets		1		--		--		--		--
Total recurring Level 3 assets	$	8,357	$	(29)	$	70	$	97	$	(226)

Liabilities
Contractholder funds:
Derivatives embedded in life and annuity contracts	$	(630)	$	(34)	$	--	$	--	$	--
Total recurring Level 3 liabilities	$	(630)	$	(34)	$	--	$	--	$	--

		Purchases		Sales		Issuances		Settlements		Balance as of June 30, 2011
Assets
Fixed income securities:
Municipal	$	3	$	(321)	$	--	$	(2)	$	1,554
Corporate		35		(347)		--		(4)		1,720
RMBS		--		(60)		--		(51)		1,194
CMBS		2		(41)		--		(1)		938
ABS		213		(49)		--		(102)		2,167
Redeemable preferred stock		--		--		--		--		1
Total fixed income securities		253		(818)		--		(160)		7,574
Equity securities		--		(1)		--		--		42
Other investments:
Free-standing derivatives, net		19		--		--		(1)		(56)	(2)
Other assets		--		--		--		--		1
Total recurring Level 3 assets	$	272	$	(819)	$	--	$	(161)	$	7,561

Liabilities
Contractholder funds:
Derivatives embedded in life and annuity contracts	$	--	$	--	$	(13)	$	48	$	(629)
Total recurring Level 3 liabilities	$	--	$	--	$	(13)	$	48	$	(629)

(2) Comprises $22 million of assets and $78 million of liabilities.

($ in millions)				Total realized and unrealized gains (losses) included in:
		Balance as of December 31, 2010		Net income (1)		OCI on Statement of Financial Position		Transfers into Level 3		Transfers out of Level 3
Assets
Fixed income securities:
Municipal	$	2,016	$	(24)	$	66	$	--	$	(59)
Corporate		1,908		35		18		182		(164)
RMBS		1,794		(87)		106		--		(113)
CMBS		923		(42)		118		66		(69)
ABS		2,417		55		28		--		(313)
Redeemable preferred stock		1		--		--		--		--
Total fixed income securities		9,059		(63)		336		248		(718)
Equity securities		63		(10)		--		--		(10)
Other investments:
Free-standing derivatives, net		(21)		(34)		--		--		--
Other assets		1		--		--		--		--
Total recurring Level 3 assets	$	9,102	$	(107)	$	336	$	248	$	(728)

Liabilities
Contractholder funds:
Derivatives embedded in life and annuity contracts	$	(653)	$	(26)	$	--	$	--	$	--
Total recurring Level 3 liabilities	$	(653)	$	(26)	$	--	$	--	$	--

		Purchases		Sales		Issuances		Settlements		Balance as of June 30, 2011
Assets
Fixed income securities:
Municipal	$	13	$	(455)	$	--	$	(3)	$	1,554
Corporate		131		(378)		--		(12)		1,720
RMBS		--		(378)		--		(128)		1,194
CMBS		10		(66)		--		(2)		938
ABS		303		(163)		--		(160)		2,167
Redeemable preferred stock		--		--		--		--		1
Total fixed income securities		457		(1,440)		--		(305)		7,574
Equity securities		--		(1)		--		--		42
Other investments:
Free-standing derivatives, net		67		--		--		(68)		(56)	(2)
Other assets		--		--		--		--		1
Total recurring Level 3 assets	$	524	$	(1,441)	$	--	$	(373)	$	7,561

Liabilities
Contractholder funds:
Derivatives embedded in life and annuity contracts	$	--	$	--	$	(27)	$	77	$	(629)
Total recurring Level 3 liabilities	$	--	$	--	$	(27)	$	77	$	(629)

(2) Comprises $22 million of assets and $78 million of liabilities.

($ in millions)				Total realized and unrealized gains (losses) included in:
		Balance as of March 31, 2010		Net income (1)		OCI on Statement of Financial Position		Purchases, sales, issuances and settlements, net		Transfers into Level 3		Transfers out of Level 3		Balance as of June 30, 2010
Assets
Fixed income securities:
Municipal	$	2,482	$	(31)	$	21	$	(236)	$	16	$	(55)	$	2,197
Corporate		2,177		(10)		26		45		151		(164)		2,225
RMBS		2,079		(111)		180		(124)		--		(14)		2,010
CMBS		1,130		(73)		192		(165)		--		(204)		880
ABS		2,403		3		6		141		--		(123)		2,430
Redeemable preferred stock		2		--		--		(1)		--		--		1
Total fixed income securities		10,273		(222)		425		(340)		167		(560)		9,743
Equity securities		72		(6)		1		(1)		--		--		66
Other investments:
Free-standing derivatives, net		(38)		(99)		--		38		--		--		(99)	(2)
Other assets		2		--		--		--		--		--		2
Total recurring Level 3 assets	$	10,309	$	(327)	$	426	$	(303)	$	167	$	(560)	$	9,712

Liabilities
Contractholder funds:
Derivatives embedded in life and annuity contracts	$	(90)	$	(30)	$	--	$	1	$	--	$	--	$	(119)
Total recurring Level 3 liabilities	$	(90)	$	(30)	$	--	$	1	$	--	$	--	$	(119)

(2) Comprises $27 million of assets and $126 million of liabilities.

($ in millions)				Total realized and unrealized gains (losses) included in:
		Balance as of December 31, 2009		Net income (1)		OCI on Statement of Financial Position		Purchases, sales, issuances and settlements, net		Transfers into Level 3		Transfers out of Level 3		Balance as of June 30, 2010
Assets
Fixed income securities:
Municipal	$	2,706	$	(47)	$	58	$	(452)	$	16	$	(84)	$	2,197
Corporate		2,241		(37)		101		34		163		(277)		2,225
Foreign government		20		--		--		(20)		--		--		--
RMBS		1,671		(169)		343		179		--		(14)		2,010
CMBS		1,404		(107)		300		(328)		24		(413)		880
ABS		2,001		18		99		472		--		(160)		2,430
Redeemable preferred stock		2		--		--		(1)		--		--		1
Total fixed income securities		10,045		(342)		901		(116)		203		(948)		9,743
Equity securities		69		(6)		4		3		--		(4)		66
Other investments:
Free-standing derivatives, net		55		(232)		--		78		--		--		(99)	(2)
Other assets		2		--		--		--		--		--		2
Total recurring Level 3 assets	$	10,171	$	(580)	$	905	$	(35)	$	203	$	(952)	$	9,712

Liabilities
Contractholder funds:
Derivatives embedded in life and annuity contracts	$	(110)	$	(12)	$	--	$	3	$	--	$	--	$	(119)
Total recurring Level 3 liabilities	$	(110)	$	(12)	$	--	$	3	$	--	$	--	$	(119)

(2) Comprises $27 million of assets and $126 million of liabilities.

Schedule of gains and losses included in net income for Level 3 assets and liabilities still held at the balance sheet date

($ in millions)		Three months ended June 30,				Six months ended June 30,
		2011		2010		2011		2010
Assets
Fixed income securities:
Municipal	$	(5)	$	(31)	$	(15)	$	(43	)
Corporate		6		(14)		10		(50	)
RMBS		(27)		(106)		(63)		(164	)
CMBS		(11)		(19)		(16)		(43	)
ABS		5		14		7		15
Total fixed income securities		(32)		(156)		(77)		(285	)
Equity securities		--		(7)		(10)		(6	)
Other investments:
Free-standing derivatives, net		--		(55)		3		(141	)
Total recurring Level 3 assets	$	(32)	$	(218)	$	(84)	$	(432	)

Liabilities
Contractholder funds:
Derivatives embedded in life and annuity contracts	$	(34)	$	(30)	$	(26)	$	(12	)
Total recurring Level 3 liabilities	$	(34)	$	(30)	$	(26)	$	(12	)

Schedule of carrying values and fair value estimates of financial instruments not carried at fair value

Financial assets

($ in millions)		June 30, 2011				December 31, 2010
		Carrying value		Fair value		Carrying value		Fair value
Mortgage loans	$	6,827	$	6,879	$	6,679	$	6,439
Limited partnership interests - cost basis		1,408		1,704		1,348		1,481
Bank loans		354		351		363		355

Financial liabilities

($ in millions)		June 30, 2011				December 31, 2010
		Carrying value		Fair value		Carrying value		Fair value
Contractholder funds on investment contracts	$	33,126	$	32,269	$	36,163	$	35,194
Long-term debt		5,907		6,222		5,908		6,325
Liability for collateral		907		907		484		484

- Definition

This item represents certain of the disclosures concerning the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

+ References+ Details

Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2011

Derivative Financial Instruments

Volume and fair value positions of derivative instruments and location in the Statement of Financial Position

($ in millions, except number of contracts)	Asset derivatives
			Volume (1)
	Balance sheet location		Notional amount	Number of contracts		Fair value, net		Gross asset		Gross liability
Derivatives designated as accounting hedging instruments
Interest rate swap agreements	Other investments	$	207	n/a	$	(15)	$	--	$	(15)
Foreign currency swap agreements	Other investments		50	n/a		(5)		2		(7)
Total		$	257	n/a	$	(20)	$	2	$	(22)

Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate swap agreements	Other investments	$	5,585	n/a	$	138	$	161	$	(23)
Interest rate swaption agreements	Other investments		2,250	n/a		13		13		--
Interest rate cap and floor agreements	Other investments		1,383	n/a		(5)		--		(5)
Financial futures contracts and options	Other investments		n/a	9,000		5		5		--
Financial futures contracts and options	Other assets		n/a	840		--		--		--
Equity and index contracts
Options, futures and warrants (2)	Other investments		160	14,931		221		221		--
Options, futures and warrants	Other assets		n/a	1,183		2		2		--
Embedded derivative financial instruments
Conversion options	Fixed income securities		5	n/a		--		--		--
Equity-indexed call options	Fixed income securities		150	n/a		16		16		--
Credit default swaps	Fixed income securities		172	n/a		(78)		--		(78)
Other embedded derivative financial instruments	Other investments		1,000	n/a		--		--		--
Credit default contracts
Credit default swaps - buying protection	Other investments		121	n/a		(1)		1		(2)
Credit default swaps - selling protection	Other investments		60	n/a		(1)		1		(2)
Other contracts
Other contracts	Other investments		6	n/a		--		--		--
Other contracts	Other assets		5	n/a		1		1		--
Total		$	10,897	25,954	$	311	$	421	$	(110)

Total asset derivatives		$	11,154	25,954	$	291	$	423	$	(132)

	Liability derivatives
			Volume (1)
	Balance sheet location		Notional amount	Number of contracts		Fair value, net		Gross asset		Gross liability
Derivatives designated as accounting hedging instruments
Interest rate swap agreements	Other liabilities & accrued expenses	$	39	n/a	$	(2)	$	--	$	(2)
Foreign currency swap agreements	Other liabilities & accrued expenses		152	n/a		(27)		--		(27)
Total		$	191	n/a	$	(29)	$	--	$	(29)

Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate swap agreements	Other liabilities & accrued expenses	$	2,479	n/a	$	15	$	28	$	(13)
Interest rate swaption agreements	Other liabilities & accrued expenses		940	n/a		5		5		--
Interest rate cap and floor agreements	Other liabilities & accrued expenses		1,669	n/a		(19)		1		(20)
Financial futures contracts and options	Other liabilities & accrued expenses		n/a	270		--		--		--
Equity and index contracts
Options and futures	Other liabilities & accrued expenses		n/a	15,316		(104)		--		(104)
Foreign currency contracts
Foreign currency swap agreements	Other liabilities & accrued expenses		50	n/a		--		--		--
Foreign currency forwards and options	Other liabilities & accrued expenses		277	n/a		(2)		2		(4)
Embedded derivative financial instruments
Guaranteed accumulation benefits	Contractholder funds		1,085	n/a		(62)		--		(62)
Guaranteed withdrawal benefits	Contractholder funds		737	n/a		(31)		--		(31)
Equity-indexed and forward starting options in life and annuity product contracts	Contractholder funds		4,432	n/a		(528)		--		(528)
Other embedded derivative financial instruments	Contractholder funds		85	n/a		(8)		--		(8)
Credit default contracts
Credit default swaps – buying protection	Other liabilities & accrued expenses		1,020	n/a		(10)		5		(15)
Credit default swaps – selling protection	Other liabilities & accrued expenses		605	n/a		(54)		2		(56)
Total		$	13,379	15,586	$	(798)	$	43	$	(841)

Total liability derivatives		$	13,570	15,586	$	(827)	$	43	$	(870)

Total derivatives		$	24,724	41,540	$	(536)

($ in millions, except number of contracts)	Asset derivatives
			Volume (1)
	Balance sheet location		Notional amount	Number of contracts		Fair value, net		Gross asset		Gross liability
Derivatives designated as accounting hedging instruments
Interest rate swap agreements	Other investments	$	156	n/a	$	(18)	$	--	$	(18)
Foreign currency swap agreements	Other investments		64	n/a		2		3		(1)
Total		$	220	n/a	$	(16)	$	3	$	(19)

Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate swap agreements	Other investments	$	1,469	n/a	$	65	$	81	$	(16)
Interest rate swaption agreements	Other investments		4,161	n/a		50		50		--
Interest rate cap and floor agreements	Other investments		226	n/a		(2)		1		(3)
Financial futures contracts and options	Other investments		n/a	8,000		3		3		--
Financial futures contracts and options	Other assets		n/a	1,420		--		--		--
Equity and index contracts
Options, futures and warrants (2)	Other investments		64	38,451		359		359		--
Options, futures and warrants	Other assets		n/a	292		--		--		--
Foreign currency contracts
Foreign currency swap agreements	Other investments		90	n/a		6		6		--
Foreign currency forwards and options	Other investments		257	n/a		6		7		(1)
Embedded derivative financial instruments
Conversion options	Fixed income securities		820	n/a		236		238		(2)
Equity-indexed call options	Fixed income securities		300	n/a		47		47		--
Credit default swaps	Fixed income securities		181	n/a		(88)		--		(88)
Other embedded derivative financial instruments	Other investments		1,000	n/a		--		--		--
Credit default contracts
Credit default swaps - buying protection	Other investments		299	n/a		(5)		2		(7)
Credit default swaps - selling protection	Other investments		150	n/a		(8)		2		(10)
Other contracts
Other contracts	Other investments		13	n/a		--		--		--
Other contracts	Other assets		5	n/a		1		1		--
Total		$	9,035	48,163	$	670	$	797	$	(127)

Total asset derivatives		$	9,255	48,163	$	654	$	800	$	(146)

	Liability derivatives
			Volume (1)
	Balance sheet location		Notional amount	Number of contracts		Fair value, net		Gross asset		Gross liability
Derivatives designated as accounting hedging instruments
Interest rate swap agreements	Other liabilities & accrued expenses	$	3,345	n/a	$	(181)	$	20	$	(201)
Interest rate swap agreements	Contractholder funds		--	n/a		2		2		--
Foreign currency swap agreements	Other liabilities & accrued expenses		138	n/a		(20)		--		(20)
Foreign currency and interest rate swap agreements	Other liabilities & accrued expenses		435	n/a		34		34		--
Foreign currency and interest rate swap agreements	Contractholder funds		--	n/a		28		28		--
Total		$	3,918	n/a	$	(137)	$	84	$	(221)

Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate swap agreements	Other liabilities & accrued expenses	$	4,543	n/a	$	29	$	97	$	(68)
Interest rate swaption agreements	Other liabilities & accrued expenses		4,400	n/a		18		18		--
Interest rate cap and floor agreements	Other liabilities & accrued expenses		3,216	n/a		(22)		1		(23)
Financial futures contracts and options	Other liabilities & accrued expenses		n/a	15,150		(1)		--		(1)
Equity and index contracts
Options and futures	Other liabilities & accrued expenses		64	21,585		(168)		2		(170)
Foreign currency contracts
Foreign currency forwards and options	Other liabilities & accrued expenses		316	n/a		1		2		(1)
Embedded derivative financial instruments
Guaranteed accumulation benefits	Contractholder funds		1,067	n/a		(88)		--		(88)
Guaranteed withdrawal benefits	Contractholder funds		739	n/a		(47)		--		(47)
Equity-indexed and forward starting options in life and annuity product contracts	Contractholder funds		4,694	n/a		(515)		--		(515)
Other embedded derivative financial instruments	Contractholder funds		85	n/a		(3)		--		(3)
Credit default contracts
Credit default swaps – buying protection	Other liabilities & accrued expenses		1,127	n/a		(13)		6		(19)
Credit default swaps – selling protection	Other liabilities & accrued expenses		482	n/a		(66)		1		(67)
Total		$	20,733	36,735	$	(875)	$	127	$	(1,002)

Total liability derivatives		$	24,651	36,735	$	(1,012)	$	211	$	(1,223)

Total derivatives		$	33,906	84,898	$	(358)

Impacts on operations and AOCI from foreign currency contracts, cash flow hedges

($ in millions)		Three months ended June 30,				Six months ended June 30,
Effective portion		2011		2010		2011		2010
(Loss) gain recognized in OCI on derivatives during the period	$	(5)	$	22	$	(13)	$	28
(Loss) gain recognized in OCI on derivatives during the term of the hedging relationship		(36)		2		(36)		2
Gain reclassified from AOCI into income (net investment income)		1		--		1		1
Gain reclassified from AOCI into income (realized capital gains and losses)		--		2		--		2
Ineffective portion and amount excluded from effectiveness
Gain recognized in income on derivatives (realized capital gains and losses)

Gains and losses from valuation, settlements, and hedge ineffectiveness, fair value hedges and derivatives not designated as hedges

($ in millions)		Three months ended June 30, 2011
		Net investment income		Realized capital gains and losses		Life and annuity contract benefits		Interest credited to contractholder funds		Operating costs and expenses		Total gain (loss) recognized in net income on derivatives
Derivatives in fair value accounting hedging relationships
Interest rate contracts	$	(2)	$	--	$	--	$	--	$	--	$	(2)
Subtotal		(2)		--		--		--		--		(2)

Derivatives not designated as accounting hedging instruments
Interest rate contracts		--		(53)		--		--		--		(53)
Equity and index contracts		--		--		--		8		--		8
Embedded derivative financial instruments		--		(3)		(8)		9		--		(2)
Credit default contracts		--		3		--		--		--		3
Other contracts		--		--		--		3		--		3
Subtotal		--		(53)		(8)		20		--		(41)
Total	$	(2)	$	(53)	$	(8)	$	20	$	--	$	(43)

		Six months ended June 30, 2011
		Net investment income		Realized capital gains and losses		Life and annuity contract benefits		Interest credited to contractholder funds		Operating costs and expenses		Total gain (loss) recognized in net income on derivatives
Derivatives in fair value accounting hedging relationships
Interest rate contracts	$	(1)	$	(8)	$	--	$	(5)	$	--	$	(14)
Foreign currency and interest rate contracts		--		--		--		(32)		--		(32)
Subtotal		(1)		(8)		--		(37)		--		(46)

Derivatives not designated as accounting hedging instruments
Interest rate contracts		--		(104)		--		--		--		(104)
Equity and index contracts		--		(19)		--		46		7		34
Embedded derivative financial instruments		--		5		37		(13)		--		29
Foreign currency contracts		--		(5)		--		--		2		(3)
Credit default contracts		--		11		--		--		--		11
Other contracts		--		--		--		5		--		5
Subtotal		--		(112)		37		38		9		(28)
Total	$	(1)	$	(120)	$	37	$	1	$	9	$	(74)

		Three months ended June 30, 2010
		Net investment income		Realized capital gains and losses		Life and annuity contract benefits		Interest credited to contractholder funds		Operating costs and expenses		Total gain (loss) recognized in net income on derivatives
Derivatives in fair value accounting hedging relationships
Interest rate contracts	$	(72)	$	2	$	--	$	13	$	--	$	(57)
Foreign currency and interest rate contracts		--		(1)		--		(16)		--		(17)
Subtotal		(72)		1		--		(3)		--		(74)

Derivatives not designated as accounting hedging instruments
Interest rate contracts		--		(282)		--		--		--		(282)
Equity and index contracts		--		82		--		(70)		(14)		(2)
Embedded derivative financial instruments		--		(106)		(28)		112		--		(22)
Foreign currency contracts		--		3		--		--		(1)		2
Credit default contracts		--		(9)		--		--		--		(9)
Other contracts		--		1		--		2		--		3
Subtotal		--		(311)		(28)		44		(15)		(310)
Total	$	(72)	$	(310)	$	(28)	$	41	$	(15)	$	(384)

		Six months ended June 30, 2010
		Net investment income		Realized capital gains and losses		Life and annuity contract benefits		Interest credited to contractholder funds		Operating costs and expenses		Total gain (loss) recognized in net income on derivatives
Derivatives in fair value accounting hedging relationships
Interest rate contracts	$	(113)	$	2	$	--	$	12	$	--	$	(99)
Foreign currency and interest rate contracts		--		(1)		--		(40)		--		(41)
Subtotal		(113)		1		--		(28)		--		(140)

Derivatives not designated as accounting hedging instruments
Interest rate contracts		--		(438)		--		--		--		(438)
Equity and index contracts		--		43		--		(36)		(8)		(1)
Embedded derivative financial instruments		--		(119)		(8)		110		--		(17)
Foreign currency contracts		--		20		--		--		(6)		14
Credit default contracts		--		(3)		--		--		--		(3)
Other contracts		--		1		--		2		--		3
Subtotal		--		(496)		(8)		76		(14)		(442)
Total	$	(113)	$	(495)	$	(8)	$	48	$	(14)	$	(582)

Impact on operations, changes in fair value, fair value hedges

($ in millions)		Three months ended June 30, 2011
		Gain (loss) on derivatives				Gain (loss) on hedged risk
Location of gain or (loss) recognized in net income on derivatives		Interest rate contracts		Foreign currency & interest rate contracts		Contractholder funds		Investments
Net investment income	$	2	$	--	$	--	$	(2)
Realized capital gains and losses		--		--		--		--
Total	$	2	$	--	$	--	$	(2)

		Six months ended June 30, 2011
		Gain (loss) on derivatives				Gain (loss) on hedged risk
Location of gain or (loss) recognized in net income on derivatives		Interest rate contracts		Foreign currency & interest rate contracts		Contractholder funds		Investments
Interest credited to contractholder funds	$	(7)	$	(34)	$	41	$	--
Net investment income		23		--		--		(23)
Realized capital gains and losses		(8)		--		--		--
Total	$	8	$	(34)	$	41	$	(23)

		Three months ended June 30, 2010
		Gain (loss) on derivatives				Gain (loss) on hedged risk
Location of gain or (loss) recognized in net income on derivatives		Interest rate contracts		Foreign currency & interest rate contracts		Contractholder funds		Investments
Interest credited to contractholder funds	$	9	$	(24)	$	15	$	--
Net investment income		(43)		--		--		43
Realized capital gains and losses		2		(1)		--		--
Total	$	(32)	$	(25)	$	15	$	43

		Six months ended June 30, 2010
		Gain (loss) on derivatives				Gain (loss) on hedged risk
Location of gain or (loss) recognized in net income on derivatives		Interest rate contracts		Foreign currency & interest rate contracts		Contractholder funds		Investments
Interest credited to contractholder funds	$	8	$	(57)	$	49	$	--
Net investment income		(56)		--		--		56
Realized capital gains and losses		2		(1)		--		--
Total	$	(46)	$	(58)	$	49	$	56

Counterparty credit exposure by counterparty credit rating

($ in millions)	June 30, 2011							December 31, 2010
Rating (1)	Number of counterparties		Notional amount (2)		Credit exposure (2)		Exposure, net of collateral (2)	Number of counterparties		Notional amount (2)		Credit exposure (2)		Exposure, net of collateral (2)
AA-	1	$	567	$	16	$	--	2	$	2,322	$	43	$	16
A+	3		5,140		28		8	5		3,189		16		10
A	4		4,161		50		4	3		3,479		17		17
A-	--		--		--		--	1		89		31		31
BBB+	1		5		35		35	--		--		--		--
Total	9	$	9,873	$	129	$	47	11	$	9,079	$	107	$	74

(1) Rating is the lower of S&P or Moody’s ratings.

(2) Only OTC derivatives with a net positive fair value are included for each counterparty.

Derivative instruments with credit features in a liability position, including fair value of assets and collateral netted against the liability

($ in millions)		June 30, 2011		December 31, 2010
Gross liability fair value of contracts containing credit-risk-contingent features	$	146	$	448
Gross asset fair value of contracts containing credit-risk-contingent features and subject to MNAs		(90)		(255)
Collateral posted under MNAs for contracts containing credit-risk-contingent features		(48)		(171)
Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently	$	8	$	22

CDS notional amounts by credit rating and fair value of protection sold

The following table shows the CDS notional amounts by credit rating and fair value of protection sold as of June 30, 2011:

($ in millions)		Notional amount
		AA		A		BBB		BB and lower		Total		Fair value
Single name
Investment grade corporate debt	$	50	$	138	$	130	$	45	$	363	$	(1)
High yield debt		--		--		--		2		2		--
Municipal		135		--		--		--		135		(8)
Subtotal		185		138		130		47		500		(9)
Baskets
Tranche
Investment grade corporate debt		--		--		--		65		65		(18)
First-to-default
Municipal		--		100		--		--		100		(28)
Subtotal		--		100		--		65		165		(46)
Total	$	185	$	238	$	130	$	112	$	665	$	(55)

The following table shows the CDS notional amounts by credit rating and fair value of protection sold as of December 31, 2010:

($ in millions)		Notional amount
		AA		A		BBB		BB and lower		Total		Fair value
Single name
Investment grade corporate debt	$	50	$	148	$	103	$	25	$	326	$	(4)
High yield debt		--		--		--		6		6		--
Municipal		135		--		--		--		135		(14)
Subtotal		185		148		103		31		467		(18)
Baskets
Tranche
Investment grade corporate debt		--		--		--		65		65		(19)
First-to-default
Municipal		--		100		--		--		100		(37)
Subtotal		--		100		--		65		165		(56)
Total	$	185	$	248	$	103	$	96	$	632	$	(74)

Reinsurance (Tables)

6 Months Ended

Jun. 30, 2011

Reinsurance

Schedule of reductions to premiums and contract charges due to reinsurance premium ceded amounts

($ in millions)		Three months ended June 30,				Six months ended June 30,
		2011		2010		2011		2010
Property-liability insurance premiums earned	$	274	$	273	$	544	$	541
Life and annuity premiums and contract charges		185		202		378		393

Schedule of reductions to costs and expenses due to reinsurance ceded amounts

($ in millions)		Three months ended June 30,				Six months ended June 30,
		2011		2010		2011		2010
Property-liability insurance claims and claims expense	$	61	$	111	$	198	$	191
Life and annuity contract benefits		52		219		136		349
Interest credited to contractholder funds		6		9		14		16

Components of Net Periodic Pension and Postretirement Benefit Costs (Tables)

6 Months Ended

Jun. 30, 2011

Components of Net Periodic Pension and Postretirement Benefit Costs

Company's pension and postretirement benefit plans

($ in millions)		Three months ended June 30,				Six months ended June 30,
		2011		2010		2011		2010

Pension benefits
Service cost	$	38	$	37	$	76	$	75
Interest cost		80		80		161		160
Expected return on plan assets		(92)		(82)		(184)		(165)
Amortization of:
Prior service credit		(1)		--		(1)		(1)
Net actuarial loss		39		39		77		79
Settlement loss		8		13		17		26
Net periodic pension cost	$	72	$	87	$	146	$	174

Postretirement benefits
Service cost	$	3	$	3	$	6	$	6
Interest cost		9		10		18		20
Amortization of:
Prior service credit		(5)		(5)		(11)		(11)
Net actuarial gain		(8)		(6)		(15)		(11)
Net periodic postretirement benefit cost	$	(1)	$	2	$	(2)	$	4

Business Segments (Tables)

6 Months Ended

Jun. 30, 2011

Business Segments

Schedule of business segments revenue disclosures

($ in millions)		Three months ended June 30,						Six months ended June 30,
		2011			2010			2011			2010
Revenues
Property-Liability
Property-liability insurance premiums
Standard auto	$	4,093		$	4,154		$	8,181		$	8,291
Non-standard auto		206			230			417			464
Total auto		4,299			4,384			8,598			8,755
Homeowners		1,548			1,512			3,087			3,028
Other personal lines		610			617			1,221			1,233
Allstate Protection		6,457			6,513			12,906			13,016
Discontinued Lines and Coverages		--			--			(1	)		--
Total property-liability insurance premiums		6,457			6,513			12,905			13,016
Net investment income		310			310			594			614
Realized capital gains and losses		(8	)		(106	)		49			(296	)
Total Property-Liability		6,759			6,717			13,548			13,334

Allstate Financial
Life and annuity premiums and contract charges
Traditional life insurance		109			104			217			210
Immediate annuities with life contingencies		15			31			58			58
Accident and health insurance		162			151			323			307
Total life and annuity premiums		286			286			598			575
Interest-sensitive life insurance		253			249			501			491
Fixed annuities		8			10			17			23
Total contract charges		261			259			518			514
Total life and annuity premiums and contract charges		547			545			1,116			1,089
Net investment income		694			723			1,378			1,454
Realized capital gains and losses		62			(353	)		101			(515	)
Total Allstate Financial		1,303			915			2,595			2,028

Corporate and Other
Service fees		2			3			4			6
Net investment income		16			16			30			31
Realized capital gains and losses		3			8			3			12
Total Corporate and Other before reclassification of service fees		21			27			37			49
Reclassification of service fees (1)		(2	)		(3	)		(4	)		(6	)
Total Corporate and Other		19			24			33			43
Consolidated revenues	$	8,081		$	7,656		$	16,176		$	15,405

(1) For presentation in the Condensed Consolidated Statements of Operations, service fees of the Corporate and Other segment are reclassified to operating costs and expenses.

Schedule of business segments net income disclosures

($ in millions)		Three months ended June 30,						Six months ended June 30,
		2011			2010			2011			2010
Net income
Property-Liability
Underwriting (loss) income
Allstate Protection	$	(1,498	)	$	209		$	(1,165	)	$	284
Discontinued Lines and Coverages		(4	)		(2	)		(10	)		(6	)
Total underwriting (loss) income		(1,502	)		207			(1,175	)		278
Net investment income		310			310			594			614
Income tax benefit (expense) on operations		460			(149	)		279			(237	)
Realized capital gains and losses, after-tax		(6	)		(69	)		32			(192	)
Property-Liability net (loss) income		(738	)		299			(270	)		463

Allstate Financial
Life and annuity premiums and contract charges		547			545			1,116			1,089
Net investment income		694			723			1,378			1,454
Periodic settlements and accruals on non-hedge derivative financial instruments		19			11			36			28
Contract benefits and interest credited to contractholder funds		(834	)		(935	)		(1,713	)		(1,840	)
Operating costs and expenses and amortization of deferred policy acquisition costs		(213	)		(157	)		(435	)		(335	)
Restructuring and related charges		--			1			2			1
Income tax expense on operations		(72	)		(63	)		(127	)		(133	)
Operating income		141			125			257			264
Realized capital gains and losses, after-tax		40			(230	)		65			(335	)
Valuation changes on embedded derivatives that are not hedged, after-tax		(3	)		--			5			--
DAC and DSI (amortization) accretion related to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax		(5	)		4			(31	)		2
DAC and DSI unlocking related to realized capital gains and losses, after-tax		--			--			1			(18	)
Reclassification of periodic settlements and accruals on non-hedge financial instruments, after-tax		(11	)		(7	)		(23	)		(18	)
Gain (loss) on disposition of operations, after-tax		4			1			(11	)		2
Allstate Financial net income (loss)		166			(107	)		263			(103	)

Corporate and Other
Service fees (1)		2			3			4			6
Net investment income		16			16			30			31
Operating costs and expenses (1)		(100	)		(104	)		(193	)		(204	)
Income tax benefit on operations		32			33			63			65
Operating loss		(50	)		(52	)		(96	)		(102	)
Realized capital gains and losses, after-tax		2			5			2			7
Corporate and Other net loss		(48	)		(47	)		(94	)		(95	)
Consolidated net (loss) income	$	(620	)	$	145		$	(101	)	$	265

(1) For presentation in the Condensed Consolidated Statements of Operations, service fees of the Corporate and Other segment are reclassified to operating costs and expenses.

Other Comprehensive Income (Tables)

6 Months Ended

Jun. 30, 2011

Other Comprehensive Income

Other comprehensive income on a pre-tax and after-tax

($ in millions)		Three months ended June 30,
		2011						2010
		Pre-tax		Tax		After- tax		Pre-tax		Tax		After- tax
Unrealized net holding gains and losses arising during the period, net of related offsets	$	676	$	(237)	$	439	$	492	$	(172)	$	320
Less: reclassification adjustment of realized capital gains and losses		111		(39)		72		(142)		50		(92)
Unrealized net capital gains and losses		565		(198)		367		634		(222)		412
Unrealized foreign currency translation adjustments		7		(3)		4		(27)		10		(17)
Unrecognized pension and other postretirement benefit cost		24		(7)		17		31		(10)		21
Other comprehensive income	$	596	$	(208)		388	$	638	$	(222)		416
Net (loss) income						(620)						145
Comprehensive (loss) income					$	(232)					$	561

		Six months ended June 30,
		2011						2010
		Pre-tax		Tax		After- tax		Pre-tax		Tax		After- tax
Unrealized net holding gains and losses arising during the period, net of related offsets	$	1,044	$	(366)	$	678	$	1,574	$	(550)	$	1,024
Less: reclassification adjustment of realized capital gains and losses		257		(90)		167		(268)		94		(174)
Unrealized net capital gains and losses		787		(276)		511		1,842		(644)		1,198
Unrealized foreign currency translation adjustments		22		(8)		14		(5)		2		(3)
Unrecognized pension and other postretirement benefit cost		47		(15)		32		57		(19)		38
Other comprehensive income	$	856	$	(299)		557	$	1,894	$	(661)		1,233
Net (loss) income						(101)						265
Comprehensive income					$	456					$	1,498

Earnings per share (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Numerator:
Net (loss) income	$ (620)	$ 145	$ (101)	$ 265
Denominator:
Weighted average common shares outstanding (in shares)	523.1	540.7	528.2	540.4
Effect of dilutive potential common shares:
Stock options (in shares)		2.1		2.0
Restricted stock units (non-participating) (in shares)		0.2
Weighted average common and dilutive potential common shares outstanding (in shares)	523.1	543.0	528.2	542.4
Earnings per share - Basic (in dollars per share)	$ (1.19)	$ 0.27	$ (0.19)	$ 0.49
Earnings per share - Diluted (in dollars per share)	$ (1.19)	$ 0.27	$ (0.19)	$ 0.49
Other Earnings Per Share Disclosures
Weighted average dilutive potential common shares outstanding resulting from stock options (in shares)	2.1		2.1
Weighted average dilutive potential common shares outstanding resulting from restricted stock options (in shares)	0.5		0.5
Weighted average common and dilutive potential common shares outstanding in the absence of the net loss (in shares)	525.7		530.8
Antidilutive stock options, exercise price exceeds market price (in shares)	28.3	27.3	28.4	26.1
Antidilutive stock options, exercise price exceeds market price, exercise price range, low end of range (in dollars per share)	$ 27.36	$ 28.52	$ 27.36	$ 27.36
Antidilutive stock options, exercise price exceeds market price, exercise price range, high end of range (in dollars per share)	$ 62.84	$ 62.84	$ 62.84	$ 64.53

Supplemental Cash Flow Information (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010
Supplemental Cash Flow Information
Non-cash investment exchanges, including modifications of certain mortgage loans (primarily refinances at maturity with no concessions granted to the borrower), fixed income securities, limited partnerships and other investments, as well as mergers completed with equity securities	$ 513	$ 353
Net change in proceeds managed
Net change in short-term investments	(421)	211
Operating cash flow (used) provided	(421)	211
Net change in cash	(2)	2
Net change in proceeds managed	(423)	213
Net change in liabilities
Liabilities for collateral, beginning of year	(484)	(658)
Liabilities for collateral, end of period	(907)	(445)
Operating cash flow provided (used)	$ 423	$ (213)

Investments (Details) (USD $) In Millions, unless otherwise specified	Jun. 30, 2011	Dec. 31, 2010
Schedule of Available for Sale Securities
Amortized cost	$ 76,502	$ 78,786
Gross unrealized gains	3,506	3,257
Gross unrealized losses	(1,594)	(2,431)
Fair value	78,414	79,612
U.S. government and agencies
Schedule of Available for Sale Securities
Amortized cost	5,872	8,320
Gross unrealized gains	318	327
Gross unrealized losses	(3)	(51)
Fair value	6,187	8,596
Municipal
Schedule of Available for Sale Securities
Amortized cost	14,557	16,201
Gross unrealized gains	491	379
Gross unrealized losses	(375)	(646)
Fair value	14,673	15,934
Corporate
Schedule of Available for Sale Securities
Amortized cost	40,610	36,260
Gross unrealized gains	2,014	1,816
Gross unrealized losses	(255)	(421)
Fair value	42,369	37,655
Foreign government
Schedule of Available for Sale Securities
Amortized cost	2,720	2,821
Gross unrealized gains	327	347
Gross unrealized losses	(4)	(10)
Fair value	3,043	3,158
Residential mortgage-backed securities ("RMBS")
Schedule of Available for Sale Securities
Amortized cost	6,356	8,509
Gross unrealized gains	203	216
Gross unrealized losses	(569)	(732)
Fair value	5,990	7,993
Commercial mortgage-backed securities ("CMBS")
Schedule of Available for Sale Securities
Amortized cost	2,083	2,213
Gross unrealized gains	57	58
Gross unrealized losses	(154)	(277)
Fair value	1,986	1,994
Asset-backed securities ("ABS")
Schedule of Available for Sale Securities
Amortized cost	4,281	4,425
Gross unrealized gains	95	113
Gross unrealized losses	(234)	(294)
Fair value	4,142	4,244
Redeemable preferred stock
Schedule of Available for Sale Securities
Amortized cost	23	37
Gross unrealized gains	1	1
Fair value	$ 24	$ 38

- Definition

For an unclassified balance sheet, total of debt securities categorized neither as held-to-maturity nor trading. Such securities are reported at fair value; unrealized gains and losses of such securities are excluded from earnings and included in other comprehensive income, a separate component of shareholders' equity, unless the Available-for-sale Security is designated as a hedge or is determined to have had an other than temporary decline in fair value below its amortized cost basis. All or a portion of the unrealized holding gain or loss of an Available-for-sale Security that is designated as being hedged in a fair value hedge shall be recognized in earnings during the period of the hedge, as should other than temporary declines in fair value below costs basis.

+ References+ Details

Investments (Details 2) (USD $) In Millions, unless otherwise specified	Jun. 30, 2011
Amortized cost
Due in one year or less	$ 2,921
Due after one year through five years	24,089
Due after five years through ten years	19,237
Due after ten years	19,618
Subtotal	65,865
RMBS and ABS	10,637
Total amortized cost for fixed income securities	76,502
Fair value
Due in one year or less	2,965
Due after one year through five years	25,112
Due after five years through ten years	20,311
Due after ten years	19,894
Subtotal	68,282
RMBS and ABS	10,132
Total fair value for fixed income securities	$ 78,414

Investments (Details 5) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Investments.
Impairment write-downs	$ (70)	$ (239)	$ (184)	$ (462)
Change in intent write-downs	(16)	(67)	(85)	(99)
Net other-than-temporary impairment losses recognized in earnings	(86)	(306)	(269)	(561)
Sales	141	145	424	233
Valuation of derivative instruments	(50)	(283)	(28)	(438)
Settlements of derivative instruments	(3)	(27)	(92)	(57)
Equity method of accounting ("EMA") limited partnership income	55	20	118	24
Realized capital gains and losses	57	(451)	153	(799)
Gross gains on sales of fixed income securities	177	144	388	286
Gross loss on sales of fixed income securities	$ 98	$ 113	$ 186	$ 187

Investments (Details 6) (USD $)	3 Months Ended		6 Months Ended
Investments (Details 6) (USD $)	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Other-than-temporary impairment losses by asset type
Total other-than-temporary impairment losses	$ (82,000,000)	$ (288,000,000)	$ (238,000,000)	$ (538,000,000)
Portion of loss recognized in other comprehensive income	(4,000,000)	(18,000,000)	(31,000,000)	(23,000,000)
Net other-than-temporary impairment losses recognized in earnings	(86,000,000)	(306,000,000)	(269,000,000)	(561,000,000)
Fixed income securities
Other-than-temporary impairment losses by asset type
Total other-than-temporary impairment losses	(60,000,000)	(221,000,000)	(188,000,000)	(422,000,000)
Portion of loss recognized in other comprehensive income	(4,000,000)	(18,000,000)	(31,000,000)	(23,000,000)
Net other-than-temporary impairment losses recognized in earnings	(64,000,000)	(239,000,000)	(219,000,000)	(445,000,000)
Municipal
Other-than-temporary impairment losses by asset type
Total other-than-temporary impairment losses	(15,000,000)	(68,000,000)	(42,000,000)	(105,000,000)
Portion of loss recognized in other comprehensive income	(1,000,000)	4,000,000	(3,000,000)	4,000,000
Net other-than-temporary impairment losses recognized in earnings	(16,000,000)	(64,000,000)	(45,000,000)	(101,000,000)
Corporate
Other-than-temporary impairment losses by asset type
Total other-than-temporary impairment losses		(6,000,000)	(5,000,000)	(53,000,000)
Portion of loss recognized in other comprehensive income		(1,000,000)	1,000,000	2,000,000
Net other-than-temporary impairment losses recognized in earnings		(7,000,000)	(4,000,000)	(51,000,000)
Foreign government
Other-than-temporary impairment losses by asset type
Total other-than-temporary impairment losses			(1,000,000)
Net other-than-temporary impairment losses recognized in earnings			(1,000,000)
Residential mortgage-backed securities ("RMBS")
Other-than-temporary impairment losses by asset type
Total other-than-temporary impairment losses	(35,000,000)	(124,000,000)	(107,000,000)	(212,000,000)
Portion of loss recognized in other comprehensive income		5,000,000	(25,000,000)	(2,000,000)
Net other-than-temporary impairment losses recognized in earnings	(35,000,000)	(119,000,000)	(132,000,000)	(214,000,000)
Commercial mortgage-backed securities ("CMBS")
Other-than-temporary impairment losses by asset type
Total other-than-temporary impairment losses	(10,000,000)	(17,000,000)	(26,000,000)	(43,000,000)
Portion of loss recognized in other comprehensive income	(3,000,000)	(11,000,000)	(7,000,000)	(11,000,000)
Net other-than-temporary impairment losses recognized in earnings	(13,000,000)	(28,000,000)	(33,000,000)	(54,000,000)
Asset-backed securities ("ABS")
Other-than-temporary impairment losses by asset type
Total other-than-temporary impairment losses		(6,000,000)	(7,000,000)	(9,000,000)
Portion of loss recognized in other comprehensive income		(15,000,000)	3,000,000	(16,000,000)
Net other-than-temporary impairment losses recognized in earnings		(21,000,000)	(4,000,000)	(25,000,000)
Equity securities
Other-than-temporary impairment losses by asset type
Total other-than-temporary impairment losses	(13,000,000)	(31,000,000)	(33,000,000)	(37,000,000)
Net other-than-temporary impairment losses recognized in earnings	(13,000,000)	(31,000,000)	(33,000,000)	(37,000,000)
Mortgage loans
Other-than-temporary impairment losses by asset type
Total other-than-temporary impairment losses	(7,000,000)	(28,000,000)	(13,000,000)	(47,000,000)
Net other-than-temporary impairment losses recognized in earnings	(7,000,000)	(28,000,000)	(13,000,000)	(47,000,000)
Limited partnership interests
Other-than-temporary impairment losses by asset type
Total other-than-temporary impairment losses	(1,000,000)	(8,000,000)	(2,000,000)	(32,000,000)
Net other-than-temporary impairment losses recognized in earnings	(1,000,000)	(8,000,000)	(2,000,000)	(32,000,000)
Other:
Other-than-temporary impairment losses by asset type
Total other-than-temporary impairment losses	(1,000,000)		(2,000,000)
Net other-than-temporary impairment losses recognized in earnings	$ (1,000,000)		$ (2,000,000)

Investments (Details 7) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010	Dec. 31, 2010
Investments.
Net unrealized gains related to changes in valuation of fixed income securities subsequent to impairment measurement date	$ 249		$ 249		$ 322
Other-than-impairment Losses Included in Accumulated Other Comprehensive Income
Amount of other-than-temporary impairment losses included in accumulated other comprehensive income for fixed income securities, not included in earnings	(489)		(489)		(615)
Credit Losses on Fixed Income Securities
Balance	(963)	(1,236)	(1,046)	(1,187)
Additional credit loss for securities previously other-than-temporarily impaired	(31)	(101)	(90)	(180)
Additional credit loss for securities not previously other-than-temporarily impaired	(17)	(71)	(44)	(172)
Reduction in credit loss for securities disposed or collected	94	95	247	226
Reduction in credit loss for securities the Company has made the decision to sell or more likely than not will be required to sell		1	15	1
Change in credit loss due to accretion of increase in cash flows	5	3	6	3
Balance	(912)	(1,309)	(912)	(1,309)
Municipal
Other-than-impairment Losses Included in Accumulated Other Comprehensive Income
Amount of other-than-temporary impairment losses included in accumulated other comprehensive income for fixed income securities, not included in earnings	(13)		(13)		(27)
Corporate
Other-than-impairment Losses Included in Accumulated Other Comprehensive Income
Amount of other-than-temporary impairment losses included in accumulated other comprehensive income for fixed income securities, not included in earnings	(32)		(32)		(31)
Residential mortgage-backed securities ("RMBS")
Other-than-impairment Losses Included in Accumulated Other Comprehensive Income
Amount of other-than-temporary impairment losses included in accumulated other comprehensive income for fixed income securities, not included in earnings	(411)		(411)		(467)
Commercial mortgage-backed securities ("CMBS")
Other-than-impairment Losses Included in Accumulated Other Comprehensive Income
Amount of other-than-temporary impairment losses included in accumulated other comprehensive income for fixed income securities, not included in earnings	(11)		(11)		(49)
Asset-backed securities ("ABS")
Other-than-impairment Losses Included in Accumulated Other Comprehensive Income
Amount of other-than-temporary impairment losses included in accumulated other comprehensive income for fixed income securities, not included in earnings	$ (22)		$ (22)		$ (41)

Investments (Details 8) (USD $) In Millions, unless otherwise specified	Jun. 30, 2011	Dec. 31, 2010
Fair Value.
Fixed income securities	$ 78,414	$ 79,612
Equity securities	4,954	4,811
Short-term Investments	2,536	3,279
Derivative instruments	(31)	(17)
Gross unrealized Gains
Fixed income securities	3,506	3,257
Equity securities	705	646
Derivatives		2
Gross unrealized Losses
Fixed income securities	(1,594)	(2,431)
Equity securities	(80)	(63)
Derivatives	(36)	(24)
Unrealized net gains (losses)
Fixed income securities	1,912	826
Equity securities	625	583
Derivative instruments	(36)	(22)
EMA limited partnership interests	7
Unrealized net capital gains and losses, pre-tax	2,508	1,387
Amount recognized for:
Insurance reserves	(217)	(41)
DAC and DSI	(61)	97
Amounts recognized	(278)	56
Deferred income taxes	(784)	(508)
Total unrealized net capital gains and losses	1,446	935
Fair value of derivative securities classified as assets, with unrealized net gains (losses) in AOCI	(5)	2
Fair value of derivative securities classified as liabilities, with unrealized net gains (losses) in AOCI	$ 26	$ 19

Investments (Details 9) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2011
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	$ 1,121
Amount recognized for:
Insurance reserves	(176)
DAC and DSI	(158)
Amounts recognized	(334)
Deferred income taxes	(276)
Increase in unrealized net capital gains and losses	511
Equity-method limited partnership interests
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	7
Fixed income securities
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	1,086
Equity securities
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	42
Derivatives
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	$ (14)

Investments (Details 10) (USD $) In Millions, unless otherwise specified	Jun. 30, 2011	Dec. 31, 2010
Total unrealized losses
Gross unrealized losses	$ (1,594)	$ (2,431)
Gross unrealized losses on equity securities	(80)	(63)
Total unrealized losses	(1,674)	(2,494)
Fixed income and equity securities
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months	1,910	2,485
Fair value, continuous unrealized loss position for less than 12 months	9,066	14,595
Unrealized losses, continuous unrealized loss position for less than 12 months	(270)	(492)
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more	1,049	1,275
Fair value, continuous unrealized loss position for 12 months or more	7,029	8,895
Unrealized losses, continuous unrealized loss position for 12 months or more	(1,404)	(2,002)
Fixed income securities
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months	1,015	1,712
Fair value, continuous unrealized loss position for less than 12 months	8,400	13,985
Unrealized losses, continuous unrealized loss position for less than 12 months	(210)	(444)
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more	962	1,231
Fair value, continuous unrealized loss position for 12 months or more	6,956	8,804
Unrealized losses, continuous unrealized loss position for 12 months or more	(1,384)	(1,987)
U.S. government and agencies
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months	9	32
Fair value, continuous unrealized loss position for less than 12 months	198	2,081
Unrealized losses, continuous unrealized loss position for less than 12 months	(3)	(51)
Total unrealized losses
Total unrealized losses	(3)	(51)
Municipal
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months	417	847
Fair value, continuous unrealized loss position for less than 12 months	1,985	4,130
Unrealized losses, continuous unrealized loss position for less than 12 months	(75)	(175)
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more	357	411
Fair value, continuous unrealized loss position for 12 months or more	2,222	2,715
Unrealized losses, continuous unrealized loss position for 12 months or more	(300)	(471)
Total unrealized losses
Total unrealized losses	(375)	(646)
Corporate
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months	385	438
Fair value, continuous unrealized loss position for less than 12 months	4,980	5,994
Unrealized losses, continuous unrealized loss position for less than 12 months	(95)	(186)
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more	113	150
Fair value, continuous unrealized loss position for 12 months or more	1,552	1,992
Unrealized losses, continuous unrealized loss position for 12 months or more	(160)	(235)
Total unrealized losses
Total unrealized losses	(255)	(421)
Foreign government
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months	25	33
Fair value, continuous unrealized loss position for less than 12 months	114	277
Unrealized losses, continuous unrealized loss position for less than 12 months	(4)	(9)
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more		1
Fair value, continuous unrealized loss position for 12 months or more		10
Unrealized losses, continuous unrealized loss position for 12 months or more		(1)
Total unrealized losses
Total unrealized losses	(4)	(10)
Residential mortgage-backed securities ("RMBS")
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months	120	280
Fair value, continuous unrealized loss position for less than 12 months	368	583
Unrealized losses, continuous unrealized loss position for less than 12 months	(12)	(12)
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more	296	422
Fair value, continuous unrealized loss position for 12 months or more	1,338	1,939
Unrealized losses, continuous unrealized loss position for 12 months or more	(557)	(720)
Total unrealized losses
Total unrealized losses	(569)	(732)
Commercial mortgage-backed securities ("CMBS")
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months	29	14
Fair value, continuous unrealized loss position for less than 12 months	314	158
Unrealized losses, continuous unrealized loss position for less than 12 months	(16)	(3)
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more	75	114
Fair value, continuous unrealized loss position for 12 months or more	609	835
Unrealized losses, continuous unrealized loss position for 12 months or more	(138)	(274)
Total unrealized losses
Total unrealized losses	(154)	(277)
Asset-backed securities ("ABS")
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months	30	68
Fair value, continuous unrealized loss position for less than 12 months	441	762
Unrealized losses, continuous unrealized loss position for less than 12 months	(5)	(8)
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more	121	133
Fair value, continuous unrealized loss position for 12 months or more	1,235	1,313
Unrealized losses, continuous unrealized loss position for 12 months or more	(229)	(286)
Total unrealized losses
Total unrealized losses	(234)	(294)
Investment grade fixed income securities
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months	836	1,607
Fair value, continuous unrealized loss position for less than 12 months	6,786	13,280
Unrealized losses, continuous unrealized loss position for less than 12 months	(156)	(408)
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more	618	857
Fair value, continuous unrealized loss position for 12 months or more	4,665	6,217
Unrealized losses, continuous unrealized loss position for 12 months or more	(607)	(943)
Total unrealized losses
Total unrealized losses	(763)	(1,351)
Below investment grade fixed income securities
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months	179	105
Fair value, continuous unrealized loss position for less than 12 months	1,614	705
Unrealized losses, continuous unrealized loss position for less than 12 months	(54)	(36)
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more	344	374
Fair value, continuous unrealized loss position for 12 months or more	2,291	2,587
Unrealized losses, continuous unrealized loss position for 12 months or more	(777)	(1,044)
Total unrealized losses
Total unrealized losses	(831)	(1,080)
Equity securities
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months	895	773
Fair value, continuous unrealized loss position for less than 12 months	666	610
Unrealized losses, continuous unrealized loss position for less than 12 months	(60)	(48)
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more	87	44
Fair value, continuous unrealized loss position for 12 months or more	73	91
Unrealized losses, continuous unrealized loss position for 12 months or more	$ (20)	$ (15)

Investments (Details 11) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010	Dec. 31, 2010
Other details of unrealized loss
Unrealized losses related to securities with unrealized loss position less than 20% of cost or amortized cost	$ 750		$ 750
Unrealized losses related to securities with unrealized loss position greater than 20% of cost or amortized cost	924		924
Percentage of amortized cost or cost (as a percent)	20.00%		20.00%
Limited partnership impairment
Limited partnership interests	4,400		4,400		3,816
Investment grade fixed income securities
Other details of unrealized loss
Unrealized losses related to securities with unrealized loss position less than 20% of cost or amortized cost	532		532
Unrealized losses related to securities with unrealized loss position greater than 20% of cost or amortized cost	231		231
Below investment grade fixed income securities
Other details of unrealized loss
Unrealized losses related to securities with unrealized loss position greater than 20% of cost or amortized cost	660		660
Unrealized losses related to securities with unrealized loss position greater than 20% of cost or amortized cost, unrealized loss position of 12 or more consecutive months	542		542
Equity securities
Other details of unrealized loss
Unrealized losses related to securities with unrealized loss position greater than 20% of cost or amortized cost	33		33
Equity-method limited partnership interests
Limited partnership impairment
Limited partnership interests	2,990		2,990		2,470
Write-downs of limited partnership		1		1
Cost-method limited partnership interests
Limited partnership impairment
Limited partnership interests	1,410		1,410		1,350
Write-downs of limited partnership	$ 1	$ 7	$ 2	$ 31

Investments (Details 12) (USD $) In Millions, unless otherwise specified	3 Months Ended	6 Months Ended
	Jun. 30, 2011	Jun. 30, 2011	Dec. 31, 2010
Carrying value of non-impaired mortgage loans, summarized by debt service coverage ratio distribution
Total mortgage loans	$ 6,827	$ 6,827	$ 6,679
Mortgage loans, non-impaired
Carrying value of non-impaired mortgage loans, summarized by debt service coverage ratio distribution
Fixed rate mortgage loans	6,361	6,361	5,923
Variable rate mortgage loans	292	292	567
Total mortgage loans	6,653	6,653	6,490
Net carrying value of impaired mortgage loans
Impaired mortgage loans with a valuation allowance	153	153	168
Impaired loans without a valuation allowance	21	21	21
Total impaired mortgage loans	174	174	189
Valuation allowance on impaired mortgage loans	68	68
Average carrying value and interest income recognized on impaired mortgage loans
Average impaired mortgage loans		178
Rollforward of the valuation allowance on impaired mortgage loans
Valuation allowance on impaired mortgage loans, beginning balance	77	84
Net increase in valuation allowance	7	13
Charge offs	(16)	(29)
Valuation allowance on impaired mortgage loans, ending balance	68	68
Carrying value of past due mortgage loans
Less than 90 days past due	27	27	12
90 days or greater past due	48	48	78
Total past due	75	75	90
Current loans	6,752	6,752	6,589
Mortgage loans, non-impaired \| Below 1.0
Carrying value of non-impaired mortgage loans, summarized by debt service coverage ratio distribution
Fixed rate mortgage loans	327	327	280
Total mortgage loans	327	327	280
Mortgage loans, non-impaired \| 1.0 - 1.25
Carrying value of non-impaired mortgage loans, summarized by debt service coverage ratio distribution
Fixed rate mortgage loans	1,622	1,622	1,583
Variable rate mortgage loans			16
Total mortgage loans	1,622	1,622	1,599
Mortgage loans, non-impaired \| 1.26 - 1.50
Carrying value of non-impaired mortgage loans, summarized by debt service coverage ratio distribution
Fixed rate mortgage loans	1,672	1,672	1,520
Variable rate mortgage loans	26	26	5
Total mortgage loans	1,698	1,698	1,525
Mortgage loans, non-impaired \| Above 1.50
Carrying value of non-impaired mortgage loans, summarized by debt service coverage ratio distribution
Fixed rate mortgage loans	2,740	2,740	2,540
Variable rate mortgage loans	266	266	546
Total mortgage loans	$ 3,006	$ 3,006	$ 3,086

Fair Value of Assets and Liabilities (Details) (USD $) In Millions, unless otherwise specified	Jun. 30, 2011	Dec. 31, 2010	Jun. 30, 2010
Fixed income securities:
Total fixed income securities	$ 78,414	$ 79,612
Equity securities	4,954	4,811
Short-term Investments	2,536	3,279
Other investments:
Free-standing derivatives, assets	22	439	27
Separate account assets	8,175	8,676
Other assets	3	1
Total recurring basis assets	94,430	96,818
Non-recurring basis	62	120
Total assets at fair value	94,492	96,938
Assets as a percent of assets measured at fair value (as a percent)	100.00%	100.00%
Contractholder funds:
Derivatives embedded in life and annuity contracts	(629)	(653)
Other liabilities:
Free-standing derivatives, liabilities	(78)	(363)	(126)
Total liabilities at fair value	(829)	(1,016)
Liabilities as a percent of liabilities measured at fair value (as a percent)	100.00%	100.00%
U.S. government and agencies
Fixed income securities:
Total fixed income securities	6,187	8,596
Municipal
Fixed income securities:
Total fixed income securities	14,673	15,934
Corporate
Fixed income securities:
Total fixed income securities	42,369	37,655
Foreign government
Fixed income securities:
Total fixed income securities	3,043	3,158
Residential mortgage-backed securities ("RMBS")
Fixed income securities:
Total fixed income securities	5,990	7,993
Commercial mortgage-backed securities ("CMBS")
Fixed income securities:
Total fixed income securities	1,986	1,994
Asset-backed securities ("ABS")
Fixed income securities:
Total fixed income securities	4,142	4,244
Redeemable preferred stock
Fixed income securities:
Total fixed income securities	24	38
Quoted prices in active markets for identical assets (Level 1)
Fixed income securities:
Total fixed income securities	4,298	4,976
Equity securities	4,248	4,316
Short-term Investments	271	174
Other investments:
Separate account assets	8,175	8,676
Other assets	2
Total recurring basis assets	16,994	18,142
Total assets at fair value	16,994	18,142
Assets as a percent of assets measured at fair value (as a percent)	18.00%	18.70%
Other liabilities:
Free-standing derivatives, liabilities		(2)
Total liabilities at fair value		(2)
Liabilities as a percent of liabilities measured at fair value (as a percent)		0.20%
Quoted prices in active markets for identical assets (Level 1) \| U.S. government and agencies
Fixed income securities:
Total fixed income securities	4,298	4,976
Significant other observable inputs (Level 2)
Fixed income securities:
Total fixed income securities	66,542	65,577
Equity securities	664	432
Short-term Investments	2,265	3,105
Other investments:
Free-standing derivatives, assets	425	651
Total recurring basis assets	69,896	69,765
Total assets at fair value	69,896	69,765
Assets as a percent of assets measured at fair value (as a percent)	74.00%	72.00%
Other liabilities:
Free-standing derivatives, liabilities	(217)	(529)
Total liabilities at fair value	(217)	(529)
Liabilities as a percent of liabilities measured at fair value (as a percent)	26.20%	52.10%
Significant other observable inputs (Level 2) \| U.S. government and agencies
Fixed income securities:
Total fixed income securities	1,889	3,620
Significant other observable inputs (Level 2) \| Municipal
Fixed income securities:
Total fixed income securities	13,119	13,918
Significant other observable inputs (Level 2) \| Corporate
Fixed income securities:
Total fixed income securities	40,649	35,747
Significant other observable inputs (Level 2) \| Foreign government
Fixed income securities:
Total fixed income securities	3,043	3,158
Significant other observable inputs (Level 2) \| Residential mortgage-backed securities ("RMBS")
Fixed income securities:
Total fixed income securities	4,796	6,199
Significant other observable inputs (Level 2) \| Commercial mortgage-backed securities ("CMBS")
Fixed income securities:
Total fixed income securities	1,048	1,071
Significant other observable inputs (Level 2) \| Asset-backed securities ("ABS")
Fixed income securities:
Total fixed income securities	1,975	1,827
Significant other observable inputs (Level 2) \| Redeemable preferred stock
Fixed income securities:
Total fixed income securities	23	37
Significant unobservable inputs (Level 3)
Fixed income securities:
Total fixed income securities	7,574	9,059
Equity securities	42	63
Other investments:
Free-standing derivatives, assets	22	74
Other assets	1	1
Total recurring basis assets	7,639	9,197
Non-recurring basis	62	120
Total assets at fair value	7,701	9,317
Assets as a percent of assets measured at fair value (as a percent)	8.10%	9.60%
Mortgage loans, measured on non-recurring basis	50	111
Limited partnership interests, measured on non-recurring basis	1	9
Other investments, measured on non-recurring basis	11
Contractholder funds:
Derivatives embedded in life and annuity contracts	(629)	(653)
Other liabilities:
Free-standing derivatives, liabilities	(78)	(95)
Total liabilities at fair value	(707)	(748)
Liabilities as a percent of liabilities measured at fair value (as a percent)	85.30%	73.60%
Significant unobservable inputs (Level 3) \| Municipal
Fixed income securities:
Total fixed income securities	1,554	2,016
Significant unobservable inputs (Level 3) \| Corporate
Fixed income securities:
Total fixed income securities	1,720	1,908
Significant unobservable inputs (Level 3) \| Residential mortgage-backed securities ("RMBS")
Fixed income securities:
Total fixed income securities	1,194	1,794
Significant unobservable inputs (Level 3) \| Commercial mortgage-backed securities ("CMBS")
Fixed income securities:
Total fixed income securities	938	923
Significant unobservable inputs (Level 3) \| Asset-backed securities ("ABS")
Fixed income securities:
Total fixed income securities	2,167	2,417
Significant unobservable inputs (Level 3) \| Redeemable preferred stock
Fixed income securities:
Total fixed income securities	1	1
Counterparty and cash collateral netting
Other investments:
Free-standing derivatives, assets	(99)	(286)
Total recurring basis assets	(99)	(286)
Total assets at fair value	(99)	(286)
Assets as a percent of assets measured at fair value (as a percent)	(0.10%)	(0.30%)
Other liabilities:
Free-standing derivatives, liabilities	95	263
Total liabilities at fair value	$ 95	$ 263
Liabilities as a percent of liabilities measured at fair value (as a percent)	(11.50%)	(25.90%)

Fair Value of Assets and Liabilities (Details 2) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended			3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended			3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended		3 Months Ended	6 Months Ended				3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010	Dec. 31, 2010	Jun. 30, 2011 Fixed income securities	Jun. 30, 2010 Fixed income securities	Jun. 30, 2011 Fixed income securities	Jun. 30, 2010 Fixed income securities	Jun. 30, 2011 Municipal	Jun. 30, 2010 Municipal	Jun. 30, 2011 Municipal	Jun. 30, 2010 Municipal	Jun. 30, 2011 Corporate	Jun. 30, 2010 Corporate	Jun. 30, 2011 Corporate	Jun. 30, 2010 Corporate	Jun. 30, 2010 Foreign government	Jun. 30, 2011 Residential mortgage-backed securities ("RMBS")	Jun. 30, 2010 Residential mortgage-backed securities ("RMBS")	Jun. 30, 2011 Residential mortgage-backed securities ("RMBS")	Jun. 30, 2010 Residential mortgage-backed securities ("RMBS")	Jun. 30, 2011 Commercial mortgage-backed securities ("CMBS")	Jun. 30, 2010 Commercial mortgage-backed securities ("CMBS")	Jun. 30, 2011 Commercial mortgage-backed securities ("CMBS")	Jun. 30, 2010 Commercial mortgage-backed securities ("CMBS")	Jun. 30, 2011 Asset-backed securities ("ABS")	Jun. 30, 2010 Asset-backed securities ("ABS")	Jun. 30, 2011 Asset-backed securities ("ABS")	Jun. 30, 2010 Asset-backed securities ("ABS")	Jun. 30, 2010 Redeemable preferred stock	Jun. 30, 2010 Redeemable preferred stock	Jun. 30, 2011 Redeemable preferred stock	Mar. 31, 2011 Redeemable preferred stock	Dec. 31, 2010 Redeemable preferred stock	Jun. 30, 2011 Equity securities	Jun. 30, 2010 Equity securities	Jun. 30, 2011 Equity securities	Jun. 30, 2010 Equity securities	Jun. 30, 2011 Free-standing derivatives, net	Jun. 30, 2010 Free-standing derivatives, net	Jun. 30, 2011 Free-standing derivatives, net	Jun. 30, 2010 Free-standing derivatives, net	Jun. 30, 2011 Other assets.	Mar. 31, 2011 Other assets.	Dec. 31, 2010 Other assets.	Jun. 30, 2010 Other assets.	Mar. 31, 2010 Other assets.	Dec. 31, 2009 Other assets.
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Balance at beginning of period	$ 8,357	$ 10,309	$ 9,102	$ 10,171		$ 8,384	$ 10,273	$ 9,059	$ 10,045	$ 1,864	$ 2,482	$ 2,016	$ 2,706	$ 2,035	$ 2,177	$ 1,908	$ 2,241	$ 20	$ 1,398	$ 2,079	$ 1,794	$ 1,671	$ 995	$ 1,130	$ 923	$ 1,404	$ 2,091	$ 2,403	$ 2,417	$ 2,001	$ 2	$ 2	$ 1	$ 1	$ 1	$ 43	$ 72	$ 63	$ 69	$ (71)	$ (38)	$ (21)	$ 55	$ 1	$ 1	$ 1	$ 2	$ 2	$ 2
Total realized and unrealized gains (losses) included in net income, recurring Level 3 assets	(29)	(327)	(107)	(580)		(26)	(222)	(63)	(342)	(13)	(31)	(24)	(47)	23	(10)	35	(37)		(26)	(111)	(87)	(169)	(21)	(73)	(42)	(107)	11	3	55	18							(6)	(10)	(6)	(3)	(99)	(34)	(232)
Total realized and unrealized gains (losses) included in OCI on Statement of Financial Position	70	426	336	905		70	425	336	901	45	21	66	58	8	26	18	101		1	180	106	343	4	192	118	300	12	6	28	99							1		4
Purchases	272		524			253		457		3		13		35		131							2		10		213		303											19		67
Sales	(819)		(1,441)			(818)		(1,440)		(321)		(455)		(347)		(378)			(60)		(378)		(41)		(66)		(49)		(163)							(1)		(1)
Settlements	(161)		(373)			(160)		(305)		(2)		(3)		(4)		(12)			(51)		(128)		(1)		(2)		(102)		(160)											(1)		(68)
Purchases, sales, issuances and settlements, net		(303)		(35)			(340)		(116)		(236)		(452)		45		34	(20)		(124)		179		(165)		(328)		141		472	(1)	(1)					(1)		3		38		78
Transfers into Level 3	97	167	248	203		97	167	248	203		16		16	87	151	182	163						10		66	24
Transfers out of Level 3	(226)	(560)	(728)	(952)		(226)	(560)	(718)	(948)	(22)	(55)	(59)	(84)	(117)	(164)	(164)	(277)		(68)	(14)	(113)	(14)	(10)	(204)	(69)	(413)	(9)	(123)	(313)	(160)								(10)	(4)
Balance at end of period	7,561	9,712	7,561	9,712		7,574	9,743	7,574	9,743	1,554	2,197	1,554	2,197	1,720	2,225	1,720	2,225		1,194	2,010	1,194	2,010	938	880	938	880	2,167	2,430	2,167	2,430	1	1	1	1	1	42	66	42	66	(56)	(99)	(56)	(99)	1	1	1	2	2	2
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Other Disclosure
Total realized and unrealized gains (losses) included in net income, recurring Level 3 assets and liabilities	(63)	(357)	(133)	(592)
Effect to net income included in realized capital gains and losses	(38)	(345)	(123)	(631)
Effect to net income included in investment income	9	22	16	54
Effect to net income included in interest credited to contractholder funds	(26)	(4)	(63)	(3)
Effect to net income included in life and annuity contract benefits	(8)	(30)	37	(12)
Free-standing derivatives, assets	22	27	22	27	439
Free-standing derivatives, liabilities	$ 78	$ 126	$ 78	$ 126	$ 363

Fair Value of Assets and Liabilities (Details 4) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 assets still held at the balance sheet date, included in earnings	$ (32)	$ (218)	$ (84)	$ (432)
Gains (losses) for Level 3 liabilities still held at the balance sheet date, included in earnings	(34)	(30)	(26)	(12)
Gains (losses) for Level 3 assets and liabilities still held at the balance sheet date, included in earnings	(66)	(248)	(110)	(444)
Gains (losses) for Level 3 assets still held at the balance sheet date, included in realized capital gains and losses	(41)	(233)	(97)	(461)
Gains (losses) for Level 3 assets still held at the balance sheet date, included in investment income	9	20	13	34
Losses (gains) for Level 3 assets still held at the balance sheet date, included in interest credited to contractholder funds	(26)	(5)	(63)	(5)
Losses (gains) for Level 3 liabilities still held at the balance sheet date, included in life and annuity contract benefits	(8)	(30)	37	(12)
Fixed income securities
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 assets still held at the balance sheet date, included in earnings	(32)	(156)	(77)	(285)
Municipal
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 assets still held at the balance sheet date, included in earnings	(5)	(31)	(15)	(43)
Corporate
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 assets still held at the balance sheet date, included in earnings	6	(14)	10	(50)
Residential mortgage-backed securities ("RMBS")
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 assets still held at the balance sheet date, included in earnings	(27)	(106)	(63)	(164)
Commercial mortgage-backed securities ("CMBS")
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 assets still held at the balance sheet date, included in earnings	(11)	(19)	(16)	(43)
Asset-backed securities ("ABS")
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 assets still held at the balance sheet date, included in earnings	5	14	7	15
Equity securities
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 assets still held at the balance sheet date, included in earnings		(7)	(10)	(6)
Free-standing derivatives, net
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 assets still held at the balance sheet date, included in earnings		(55)	3	(141)
Derivatives embedded in life and annuity contracts
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 liabilities still held at the balance sheet date, included in earnings	$ (34)	$ (30)	$ (26)	$ (12)

Fair Value of Assets and Liabilities (Details 5) (USD $) In Millions, unless otherwise specified	Jun. 30, 2011	Dec. 31, 2010	Jun. 30, 2010	Dec. 31, 2009
Financial assets
Mortgage loans	$ 6,827	$ 6,679
Financial liabilities
Long-term debt	5,907	5,908
Liability for collateral	907	484	445	658
Carrying value
Financial assets
Mortgage loans	6,827	6,679
Limited partnership interests - cost basis	1,408	1,348
Bank loans	354	363
Financial liabilities
Contractholder funds on investment contracts	33,126	36,163
Long-term debt	5,907	5,908
Liability for collateral	907	484
Fair Value
Financial assets
Mortgage loans	6,879	6,439
Limited partnership interests - cost basis	1,704	1,481
Bank loans	351	355
Financial liabilities
Contractholder funds on investment contracts	32,269	35,194
Long-term debt	6,222	6,325
Liability for collateral	$ 907	$ 484

Derivative Financial Instruments (Details) (USD $) In Millions, except Share data, unless otherwise specified	Jun. 30, 2011	Dec. 31, 2010
Derivatives, Fair Value
Notional amount of asset derivatives designated as accounting hedging instruments	$ 257	$ 220
Notional amount of asset derivatives not designated as accounting hedging instruments	10,897	9,035
Total asset derivatives, notional amount	11,154	9,255
Notional amount of liability derivatives designated as accounting hedging instruments	191	3,918
Notional amount of liability derivatives not designated as accounting hedging instruments	13,379	20,733
Total liability derivatives, notional amount	13,570	24,651
Total derivatives, notional amount	24,724	33,906
Number of contracts of asset derivatives not designated as accounting hedging instruments	25,954	48,163
Total asset derivatives, number of contracts	25,954	48,163
Number of contracts of liability derivatives not designated as accounting hedging instruments	15,586	36,735
Total liability derivatives, number of contracts	15,586	36,735
Total derivatives, number of contracts	41,540	84,898
Fair value, net of asset derivatives designated as accounting hedging instruments	(20)	(16)
Fair value, net of asset derivatives not designated as accounting hedging instruments	311	670
Total asset derivatives, fair value, net	291	654
Fair value, net of liability derivatives designated as accounting hedging instruments	(29)	(137)
Fair value, net of liability derivatives not designated as accounting hedging instruments	(798)	(875)
Total liability derivatives, fair value, net	(827)	(1,012)
Total derivatives, fair value, net	(536)	(358)
Gross asset of asset derivatives designated as accounting hedging instruments	2	3
Gross asset of asset derivatives not designated as accounting hedging instruments	421	797
Total asset derivatives, gross asset	423	800
Gross asset of liability derivatives designated as accounting hedging instruments		84
Gross asset of liability derivatives not designated as accounting hedging instruments	43	127
Total liability derivatives, gross asset	43	211
Gross liability of asset derivatives designated as accounting hedging instruments	(22)	(19)
Gross liability of asset derivatives not designated as accounting hedging instruments	(110)	(127)
Total asset derivatives, gross liability	(132)	(146)
Gross liability of liability derivatives designated as accounting hedging instruments	(29)	(221)
Gross liability of liability derivatives not designated as accounting hedging instruments	(841)	(1,002)
Total liability derivatives, gross liability	(870)	(1,223)
Securities pledged in the form of margin deposits	12
Foreign currency and interest rate swap agreements \| Other liabilities and accrued expenses
Derivatives, Fair Value
Notional amount of liability derivatives designated as accounting hedging instruments		435
Fair value, net of liability derivatives designated as accounting hedging instruments		34
Gross asset of liability derivatives designated as accounting hedging instruments		34
Foreign currency and interest rate swap agreements \| Contractholder funds.
Derivatives, Fair Value
Fair value, net of liability derivatives designated as accounting hedging instruments		28
Gross asset of liability derivatives designated as accounting hedging instruments		28
Interest rate swap agreements \| Other investments.
Derivatives, Fair Value
Notional amount of asset derivatives designated as accounting hedging instruments	207	156
Notional amount of asset derivatives not designated as accounting hedging instruments	5,585	1,469
Fair value, net of asset derivatives designated as accounting hedging instruments	(15)	(18)
Fair value, net of asset derivatives not designated as accounting hedging instruments	138	65
Gross asset of asset derivatives not designated as accounting hedging instruments	161	81
Gross liability of asset derivatives designated as accounting hedging instruments	(15)	(18)
Gross liability of asset derivatives not designated as accounting hedging instruments	(23)	(16)
Interest rate swap agreements \| Other liabilities and accrued expenses
Derivatives, Fair Value
Notional amount of liability derivatives designated as accounting hedging instruments	39	3,345
Notional amount of liability derivatives not designated as accounting hedging instruments	2,479	4,543
Fair value, net of liability derivatives designated as accounting hedging instruments	(2)	(181)
Fair value, net of liability derivatives not designated as accounting hedging instruments	15	29
Gross asset of liability derivatives designated as accounting hedging instruments		20
Gross asset of liability derivatives not designated as accounting hedging instruments	28	97
Gross liability of liability derivatives designated as accounting hedging instruments	(2)	(201)
Gross liability of liability derivatives not designated as accounting hedging instruments	(13)	(68)
Interest rate swap agreements \| Contractholder funds.
Derivatives, Fair Value
Fair value, net of liability derivatives designated as accounting hedging instruments		2
Gross asset of liability derivatives designated as accounting hedging instruments		2
Foreign currency swap agreements \| Other investments.
Derivatives, Fair Value
Notional amount of asset derivatives designated as accounting hedging instruments	50	64
Notional amount of asset derivatives not designated as accounting hedging instruments		90
Fair value, net of asset derivatives designated as accounting hedging instruments	(5)	2
Fair value, net of asset derivatives not designated as accounting hedging instruments		6
Gross asset of asset derivatives designated as accounting hedging instruments	2	3
Gross asset of asset derivatives not designated as accounting hedging instruments		6
Gross liability of asset derivatives designated as accounting hedging instruments	(7)	(1)
Foreign currency swap agreements \| Other liabilities and accrued expenses
Derivatives, Fair Value
Notional amount of liability derivatives designated as accounting hedging instruments	152	138
Notional amount of liability derivatives not designated as accounting hedging instruments	50
Fair value, net of liability derivatives designated as accounting hedging instruments	(27)	(20)
Gross liability of liability derivatives designated as accounting hedging instruments	(27)	(20)
Interest rate swaption agreements \| Other investments.
Derivatives, Fair Value
Notional amount of asset derivatives not designated as accounting hedging instruments	2,250	4,161
Fair value, net of asset derivatives not designated as accounting hedging instruments	13	50
Gross asset of asset derivatives not designated as accounting hedging instruments	13	50
Interest rate swaption agreements \| Other liabilities and accrued expenses
Derivatives, Fair Value
Notional amount of liability derivatives not designated as accounting hedging instruments	940	4,400
Fair value, net of liability derivatives not designated as accounting hedging instruments	5	18
Gross asset of liability derivatives not designated as accounting hedging instruments	5	18
Interest rate cap and floor agreements \| Other investments.
Derivatives, Fair Value
Notional amount of asset derivatives not designated as accounting hedging instruments	1,383	226
Fair value, net of asset derivatives not designated as accounting hedging instruments	(5)	(2)
Gross asset of asset derivatives not designated as accounting hedging instruments		1
Gross liability of asset derivatives not designated as accounting hedging instruments	(5)	(3)
Interest rate cap and floor agreements \| Other liabilities and accrued expenses
Derivatives, Fair Value
Notional amount of liability derivatives not designated as accounting hedging instruments	1,669	3,216
Fair value, net of liability derivatives not designated as accounting hedging instruments	(19)	(22)
Gross asset of liability derivatives not designated as accounting hedging instruments	1	1
Gross liability of liability derivatives not designated as accounting hedging instruments	(20)	(23)
Financial futures contracts and options \| Other investments.
Derivatives, Fair Value
Number of contracts of asset derivatives not designated as accounting hedging instruments	9,000	8,000
Fair value, net of asset derivatives not designated as accounting hedging instruments	5	3
Gross asset of asset derivatives not designated as accounting hedging instruments	5	3
Financial futures contracts and options \| Other assets.
Derivatives, Fair Value
Number of contracts of asset derivatives not designated as accounting hedging instruments	840	1,420
Financial futures contracts and options \| Other liabilities and accrued expenses
Derivatives, Fair Value
Number of contracts of liability derivatives not designated as accounting hedging instruments	270	15,150
Fair value, net of liability derivatives not designated as accounting hedging instruments		(1)
Gross liability of liability derivatives not designated as accounting hedging instruments		(1)
Options and futures
Derivatives, Fair Value
Stock rights held by the Company related to derivative contracts (number of rights)	308,430	2,768
Stock warrants held by the Company related to derivative contracts (number of warrants)	4,389,707	1,379,932
Options and futures \| Other investments.
Derivatives, Fair Value
Notional amount of asset derivatives not designated as accounting hedging instruments	160	64
Number of contracts of asset derivatives not designated as accounting hedging instruments	14,931	38,451
Fair value, net of asset derivatives not designated as accounting hedging instruments	221	359
Gross asset of asset derivatives not designated as accounting hedging instruments	221	359
Options and futures \| Other assets.
Derivatives, Fair Value
Number of contracts of asset derivatives not designated as accounting hedging instruments	1,183	292
Fair value, net of asset derivatives not designated as accounting hedging instruments	2
Gross asset of asset derivatives not designated as accounting hedging instruments	2
Options and futures \| Other liabilities and accrued expenses
Derivatives, Fair Value
Notional amount of liability derivatives not designated as accounting hedging instruments		64
Number of contracts of liability derivatives not designated as accounting hedging instruments	15,316	21,585
Fair value, net of liability derivatives not designated as accounting hedging instruments	(104)	(168)
Gross asset of liability derivatives not designated as accounting hedging instruments		2
Gross liability of liability derivatives not designated as accounting hedging instruments	(104)	(170)
Foreign currency forwards and options \| Other investments.
Derivatives, Fair Value
Notional amount of asset derivatives not designated as accounting hedging instruments		257
Fair value, net of asset derivatives not designated as accounting hedging instruments		6
Gross asset of asset derivatives not designated as accounting hedging instruments		7
Gross liability of asset derivatives not designated as accounting hedging instruments		(1)
Foreign currency forwards and options \| Other liabilities and accrued expenses
Derivatives, Fair Value
Notional amount of liability derivatives not designated as accounting hedging instruments	277	316
Fair value, net of liability derivatives not designated as accounting hedging instruments	(2)	1
Gross asset of liability derivatives not designated as accounting hedging instruments	2	2
Gross liability of liability derivatives not designated as accounting hedging instruments	(4)	(1)
Conversion options \| Fixed income securities
Derivatives, Fair Value
Notional amount of asset derivatives not designated as accounting hedging instruments	5	820
Fair value, net of asset derivatives not designated as accounting hedging instruments		236
Gross asset of asset derivatives not designated as accounting hedging instruments		238
Gross liability of asset derivatives not designated as accounting hedging instruments		(2)
Equity-indexed call options \| Fixed income securities
Derivatives, Fair Value
Notional amount of asset derivatives not designated as accounting hedging instruments	150	300
Fair value, net of asset derivatives not designated as accounting hedging instruments	16	47
Gross asset of asset derivatives not designated as accounting hedging instruments	16	47
Credit default swaps \| Fixed income securities
Derivatives, Fair Value
Notional amount of asset derivatives not designated as accounting hedging instruments	172	181
Fair value, net of asset derivatives not designated as accounting hedging instruments	(78)	(88)
Gross liability of asset derivatives not designated as accounting hedging instruments	(78)	(88)
Other embedded derivative financial instruments \| Other investments.
Derivatives, Fair Value
Notional amount of asset derivatives not designated as accounting hedging instruments	1,000	1,000
Other embedded derivative financial instruments \| Contractholder funds.
Derivatives, Fair Value
Notional amount of liability derivatives not designated as accounting hedging instruments	85	85
Fair value, net of liability derivatives not designated as accounting hedging instruments	(8)	(3)
Gross liability of liability derivatives not designated as accounting hedging instruments	(8)	(3)
Guaranteed accumulation benefits \| Contractholder funds.
Derivatives, Fair Value
Notional amount of liability derivatives not designated as accounting hedging instruments	1,085	1,067
Fair value, net of liability derivatives not designated as accounting hedging instruments	(62)	(88)
Gross liability of liability derivatives not designated as accounting hedging instruments	(62)	(88)
Guaranteed withdrawal benefits \| Contractholder funds.
Derivatives, Fair Value
Notional amount of liability derivatives not designated as accounting hedging instruments	737	739
Fair value, net of liability derivatives not designated as accounting hedging instruments	(31)	(47)
Gross liability of liability derivatives not designated as accounting hedging instruments	(31)	(47)
Equity-indexed and forward starting options in life and annuity product contracts \| Contractholder funds.
Derivatives, Fair Value
Notional amount of liability derivatives not designated as accounting hedging instruments	4,432	4,694
Fair value, net of liability derivatives not designated as accounting hedging instruments	(528)	(515)
Gross liability of liability derivatives not designated as accounting hedging instruments	(528)	(515)
Credit Default Swaps - Buying Protection \| Other investments.
Derivatives, Fair Value
Notional amount of asset derivatives not designated as accounting hedging instruments	121	299
Fair value, net of asset derivatives not designated as accounting hedging instruments	(1)	(5)
Gross asset of asset derivatives not designated as accounting hedging instruments	1	2
Gross liability of asset derivatives not designated as accounting hedging instruments	(2)	(7)
Credit Default Swaps - Buying Protection \| Other liabilities and accrued expenses
Derivatives, Fair Value
Notional amount of liability derivatives not designated as accounting hedging instruments	1,020	1,127
Fair value, net of liability derivatives not designated as accounting hedging instruments	(10)	(13)
Gross asset of liability derivatives not designated as accounting hedging instruments	5	6
Gross liability of liability derivatives not designated as accounting hedging instruments	(15)	(19)
Credit Default Swaps - Selling Protection \| Other investments.
Derivatives, Fair Value
Notional amount of asset derivatives not designated as accounting hedging instruments	60	150
Fair value, net of asset derivatives not designated as accounting hedging instruments	(1)	(8)
Gross asset of asset derivatives not designated as accounting hedging instruments	1	2
Gross liability of asset derivatives not designated as accounting hedging instruments	(2)	(10)
Credit Default Swaps - Selling Protection \| Other liabilities and accrued expenses
Derivatives, Fair Value
Notional amount of liability derivatives not designated as accounting hedging instruments	605	482
Fair value, net of liability derivatives not designated as accounting hedging instruments	(54)	(66)
Gross asset of liability derivatives not designated as accounting hedging instruments	2	1
Gross liability of liability derivatives not designated as accounting hedging instruments	(56)	(67)
Other contracts \| Other investments.
Derivatives, Fair Value
Notional amount of asset derivatives not designated as accounting hedging instruments	6	13
Other contracts \| Other assets.
Derivatives, Fair Value
Notional amount of asset derivatives not designated as accounting hedging instruments	5	5
Fair value, net of asset derivatives not designated as accounting hedging instruments	1	1
Gross asset of asset derivatives not designated as accounting hedging instruments	$ 1	$ 1

Derivative Financial Instruments (Details 2) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Derivative Financial Instruments
Cash flow hedge losses to be reclassified from AOCI during the next twelve months	$ 7		$ 7
(Loss) gain recognized in OCI on derivatives during the period	(5)	22	(13)	28
(Loss) gain recognized in OCI on derivatives during the term of the hedging relationship	(36)	2	(36)	2
Gain reclassified from AOCI into income (net investment income)	1		1	1
Gain (loss) reclassified from AOCI into income (realized capital gains and losses)		2		2
Derivative Instruments, Gain (Loss)
Derivatives in fair value accounting hedging relationships, total gain (loss) recognized in net income on derivatives	(2)	(74)	(46)	(140)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(41)	(310)	(28)	(442)
Total gain (loss) recognized in net income on derivatives	(43)	(384)	(74)	(582)
Net investment income.
Derivative Instruments, Gain (Loss)
Derivatives in fair value accounting hedging relationships, total gain (loss) recognized in net income on derivatives	(2)	(72)	(1)	(113)
Total gain (loss) recognized in net income on derivatives	(2)	(72)	(1)	(113)
Realized capital gains and losses
Derivative Instruments, Gain (Loss)
Derivatives in fair value accounting hedging relationships, total gain (loss) recognized in net income on derivatives		1	(8)	1
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(53)	(311)	(112)	(496)
Total gain (loss) recognized in net income on derivatives	(53)	(310)	(120)	(495)
Life and annuity contract benefits
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(8)	(28)	37	(8)
Total gain (loss) recognized in net income on derivatives	(8)	(28)	37	(8)
Interest credited to contractholder funds
Derivative Instruments, Gain (Loss)
Derivatives in fair value accounting hedging relationships, total gain (loss) recognized in net income on derivatives		(3)	(37)	(28)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	20	44	38	76
Total gain (loss) recognized in net income on derivatives	20	41	1	48
Operating costs and expenses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives		(15)	9	(14)
Total gain (loss) recognized in net income on derivatives		(15)	9	(14)
Foreign currency and interest rate contracts
Derivative Instruments, Gain (Loss)
Derivatives in fair value accounting hedging relationships, total gain (loss) recognized in net income on derivatives		(17)	(32)	(41)
Foreign currency and interest rate contracts \| Realized capital gains and losses
Derivative Instruments, Gain (Loss)
Derivatives in fair value accounting hedging relationships, total gain (loss) recognized in net income on derivatives		(1)		(1)
Foreign currency and interest rate contracts \| Interest credited to contractholder funds
Derivative Instruments, Gain (Loss)
Derivatives in fair value accounting hedging relationships, total gain (loss) recognized in net income on derivatives		(16)	(32)	(40)
Interest rate contracts
Derivative Instruments, Gain (Loss)
Derivatives in fair value accounting hedging relationships, total gain (loss) recognized in net income on derivatives	(2)	(57)	(14)	(99)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(53)	(282)	(104)	(438)
Interest rate contracts \| Net investment income.
Derivative Instruments, Gain (Loss)
Derivatives in fair value accounting hedging relationships, total gain (loss) recognized in net income on derivatives	(2)	(72)	(1)	(113)
Interest rate contracts \| Realized capital gains and losses
Derivative Instruments, Gain (Loss)
Derivatives in fair value accounting hedging relationships, total gain (loss) recognized in net income on derivatives		2	(8)	2
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(53)	(282)	(104)	(438)
Interest rate contracts \| Interest credited to contractholder funds
Derivative Instruments, Gain (Loss)
Derivatives in fair value accounting hedging relationships, total gain (loss) recognized in net income on derivatives		13	(5)	12
Foreign currency contracts
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives		2	(3)	14
Foreign currency contracts \| Realized capital gains and losses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives		3	(5)	20
Foreign currency contracts \| Operating costs and expenses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives		(1)	2	(6)
Equity and index contracts
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	8	(2)	34	(1)
Equity and index contracts \| Realized capital gains and losses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives		82	(19)	43
Equity and index contracts \| Interest credited to contractholder funds
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	8	(70)	46	(36)
Equity and index contracts \| Operating costs and expenses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives		(14)	7	(8)
Embedded derivative financial instruments
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(2)	(22)	29	(17)
Embedded derivative financial instruments \| Realized capital gains and losses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(3)	(106)	5	(119)
Embedded derivative financial instruments \| Life and annuity contract benefits
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(8)	(28)	37	(8)
Embedded derivative financial instruments \| Interest credited to contractholder funds
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	9	112	(13)	110
Credit default swaps
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	3	(9)	11	(3)
Credit default swaps \| Realized capital gains and losses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	3	(9)	11	(3)
Other contracts
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	3	3	5	3
Other contracts \| Realized capital gains and losses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives		1		1
Other contracts \| Interest credited to contractholder funds
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	$ 3	$ 2	$ 5	$ 2

Derivative Financial Instruments (Details 4) (USD $) In Millions, unless otherwise specified	Jun. 30, 2011	Dec. 31, 2010
Derivative Financial Instruments
Cash and securities pledged as collateral by counterparties	$ 83
Securities pledged as collateral to counterparties	107
Collateral posted under MNAs, credit-risk-contingent provisions in a liability position	48	171
Collateral posted under MNAs for contracts without credit-risk-contingent liabilities	59
Credit Derivatives
Number of counter-parties	9	11
Notional amount	9,873	9,079
Credit exposure	129	107
Exposure, net of collateral	47	74
Gross liability fair value of contracts containing credit-risk-contingent features	146	448
Gross asset fair value of contracts containing credit-risk-contingent features and subject to MNAs	(90)	(255)
Collateral posted under MNAs for contracts containing credit-risk-contingent features	(48)	(171)
Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently	8	22
AA-
Credit Derivatives
Number of counter-parties	1	2
Notional amount	567	2,322
Credit exposure	16	43
Exposure, net of collateral		16
A+
Credit Derivatives
Number of counter-parties	3	5
Notional amount	5,140	3,189
Credit exposure	28	16
Exposure, net of collateral	8	10
A
Credit Derivatives
Number of counter-parties	4	3
Notional amount	4,161	3,479
Credit exposure	50	17
Exposure, net of collateral	4	17
A-
Credit Derivatives
Number of counter-parties		1
Notional amount		89
Credit exposure		31
Exposure, net of collateral		31
BBB+
Credit Derivatives
Number of counter-parties	1
Notional amount	5
Credit exposure	35
Exposure, net of collateral	$ 35

Derivative Financial Instruments (Details 5) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2011	Jun. 30, 2011 Credit default swaps	Dec. 31, 2010 Credit default swaps	Jun. 30, 2011 Credit default swaps Single name	Dec. 31, 2010 Credit default swaps Single name	Jun. 30, 2011 Credit default swaps Single name Investment grade corporate debt	Dec. 31, 2010 Credit default swaps Single name Investment grade corporate debt	Jun. 30, 2011 Credit default swaps Single name High yield debt	Dec. 31, 2010 Credit default swaps Single name High yield debt	Jun. 30, 2011 Credit default swaps Single name Municipal.	Dec. 31, 2010 Credit default swaps Single name Municipal.	Jun. 30, 2011 Credit default swaps Baskets	Dec. 31, 2010 Credit default swaps Baskets	Jun. 30, 2011 Credit default swaps Tranche Investment grade corporate debt	Dec. 31, 2010 Credit default swaps Tranche Investment grade corporate debt	Jun. 30, 2011 Credit default swaps First-to-default Municipal.	Dec. 31, 2010 Credit default swaps First-to-default Municipal.	Jun. 30, 2011 AA Credit default swaps	Dec. 31, 2010 AA Credit default swaps	Jun. 30, 2011 AA Credit default swaps Single name	Dec. 31, 2010 AA Credit default swaps Single name	Jun. 30, 2011 AA Credit default swaps Single name Investment grade corporate debt	Dec. 31, 2010 AA Credit default swaps Single name Investment grade corporate debt	Jun. 30, 2011 AA Credit default swaps Single name Municipal.	Dec. 31, 2010 AA Credit default swaps Single name Municipal.	Jun. 30, 2011 A Credit default swaps	Dec. 31, 2010 A Credit default swaps	Jun. 30, 2011 A Credit default swaps Single name	Dec. 31, 2010 A Credit default swaps Single name	Jun. 30, 2011 A Credit default swaps Single name Investment grade corporate debt	Dec. 31, 2010 A Credit default swaps Single name Investment grade corporate debt	Jun. 30, 2011 A Credit default swaps Baskets	Dec. 31, 2010 A Credit default swaps Baskets	Jun. 30, 2011 A Credit default swaps First-to-default Municipal.	Dec. 31, 2010 A Credit default swaps First-to-default Municipal.	Jun. 30, 2011 BBB Credit default swaps	Dec. 31, 2010 BBB Credit default swaps	Jun. 30, 2011 BBB Credit default swaps Single name	Dec. 31, 2010 BBB Credit default swaps Single name	Jun. 30, 2011 BBB Credit default swaps Single name Investment grade corporate debt	Dec. 31, 2010 BBB Credit default swaps Single name Investment grade corporate debt	Jun. 30, 2011 BB and lower Credit default swaps	Dec. 31, 2010 BB and lower Credit default swaps	Jun. 30, 2011 BB and lower Credit default swaps Single name	Dec. 31, 2010 BB and lower Credit default swaps Single name	Jun. 30, 2011 BB and lower Credit default swaps Single name Investment grade corporate debt	Dec. 31, 2010 BB and lower Credit default swaps Single name Investment grade corporate debt	Jun. 30, 2011 BB and lower Credit default swaps Single name High yield debt	Dec. 31, 2010 BB and lower Credit default swaps Single name High yield debt	Jun. 30, 2011 BB and lower Credit default swaps Baskets	Dec. 31, 2010 BB and lower Credit default swaps Baskets	Jun. 30, 2011 BB and lower Credit default swaps Tranche Investment grade corporate debt	Dec. 31, 2010 BB and lower Credit default swaps Tranche Investment grade corporate debt
Credit Derivatives
Notional amount		$ 665	$ 632	$ 500	$ 467	$ 363	$ 326	$ 2	$ 6	$ 135	$ 135	$ 165	$ 165	$ 65	$ 65	$ 100	$ 100	$ 185	$ 185	$ 185	$ 185	$ 50	$ 50	$ 135	$ 135	$ 238	$ 248	$ 138	$ 148	$ 138	$ 148	$ 100	$ 100	$ 100	$ 100	$ 130	$ 103	$ 130	$ 103	$ 130	$ 103	$ 112	$ 96	$ 47	$ 31	$ 45	$ 25	$ 2	$ 6	$ 65	$ 65	$ 65	$ 65
Fair value		$ (55)	$ (74)	$ (9)	$ (18)	$ (1)	$ (4)			$ (8)	$ (14)	$ (46)	$ (56)	$ (18)	$ (19)	$ (28)	$ (37)
Term of credit default swaps (in years)	5Y
Number of credit derivative reference entity	125

Company Restructuring (Details 2) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2011
Restructuring Reserve
Balance at the beginning of the period	$ 16
Expense incurred	19
Adjustments to liability	(9)
Payments applied against liability	(11)
Balance at the end of the period	15
Employee costs
Restructuring Reserve
Balance at the beginning of the period	13
Expense incurred	14
Adjustments to liability	(9)
Payments applied against liability	(9)
Balance at the end of the period	9
Cumulative amount incurred to date for active programs	103
Exit costs
Restructuring Reserve
Balance at the beginning of the period	3
Expense incurred	5
Payments applied against liability	(2)
Balance at the end of the period	6
Cumulative amount incurred to date for active programs	$ 45

Guarantees and Contingent Liabilities (Details) (USD $)	6 Months Ended
Guarantees and Contingent Liabilities (Details) (USD $)	Jun. 30, 2011	Dec. 31, 2010
Proceedings:
Loss contingencies, reasonably possible pretax loss exposure in excess of the amount accrued, low estimate	$ 0
Loss contingencies, reasonably possible pretax loss exposure in excess of the amount accrued, high estimate	855,000,000
Accrued settlement due to prior year reserve reestimate in property-liability insurance claims and claims expense		75,000,000
Number of former employee agents plaintiffs seek benefits for	6,500
Reserves for asbestos claims	1,090,000,000	1,100,000,000
Reinsurance recoverables for asbestos claims	529,000,000	555,000,000
Reserves for environmental claims	192,000,000	201,000,000
Reinsurance recoverables for environmental claims	44,000,000	47,000,000
Percentage of net asbestos and environmental reserves that were for incurred but not reported estimated losses (as a percent)	61.00%	60.00%
Guarantee on fixed income securities
Guarantees:
Maximum amount at risk pursuant to a guarantee	67,000,000
Residual guarantee
Guarantees:
Maximum amount at risk pursuant to a guarantee	$ 8,000,000
Guarantee obligation term	Less than one year to three years

Components of Net Periodic Pension and Postretirement Benefit Costs (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Pension benefits
Components of net periodic cost
Service cost	$ 38	$ 37	$ 76	$ 75
Interest cost	80	80	161	160
Expected return on plan assets	(92)	(82)	(184)	(165)
Amortization of prior service credit	(1)		(1)	(1)
Amortization of net actuarial loss (gain)	39	39	77	79
Settlement loss	8	13	17	26
Net periodic cost	72	87	146	174
Postretirement benefits
Components of net periodic cost
Service cost	3	3	6	6
Interest cost	9	10	18	20
Amortization of prior service credit	(5)	(5)	(11)	(11)
Amortization of net actuarial loss (gain)	(8)	(6)	(15)	(11)
Net periodic cost	$ (1)	$ 2	$ (2)	$ 4

- Definition

The amount of net (gain) loss recognized in net periodic benefit cost as a result of an irrevocable action that relieves the employer (or the plan) of primary responsibility for a benefit obligation and eliminates significant risks related to the obligation and the assets used to effect the settlement. Examples of transactions that constitute a settlement include (a) making lump-sum cash payments to plan participants in exchange for their rights to receive specified benefits and (b) purchasing nonparticipating annuity contracts to cover vested benefits.

+ References+ Details

Business Segments (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Segment Reporting Information
Property-liability insurance premiums	$ 6,457	$ 6,513	$ 12,905	$ 13,016
Life and annuity premiums and contract charges	547	545	1,116	1,089
Net investment income	1,020	1,049	2,002	2,099
Realized capital gains and losses	57	(451)	153	(799)
Consolidated revenues	8,081	7,656	16,176	15,405
Property-Liability
Segment Reporting Information
Net investment income	310	310	594	614
Realized capital gains and losses	(8)	(106)	49	(296)
Consolidated revenues	6,759	6,717	13,548	13,334
Property-Liability \| Total auto
Segment Reporting Information
Property-liability insurance premiums	4,299	4,384	8,598	8,755
Property-Liability \| Standard auto
Segment Reporting Information
Property-liability insurance premiums	4,093	4,154	8,181	8,291
Property-Liability \| Non-standard auto
Segment Reporting Information
Property-liability insurance premiums	206	230	417	464
Property-Liability \| Homeowners
Segment Reporting Information
Property-liability insurance premiums	1,548	1,512	3,087	3,028
Property-Liability \| Other personal lines
Segment Reporting Information
Property-liability insurance premiums	610	617	1,221	1,233
Allstate Protection
Segment Reporting Information
Property-liability insurance premiums	6,457	6,513	12,906	13,016
Discontinued Lines and Coverages
Segment Reporting Information
Property-liability insurance premiums			(1)
Allstate Financial
Segment Reporting Information
Life and annuity premiums and contract charges	547	545	1,116	1,089
Net investment income	694	723	1,378	1,454
Realized capital gains and losses	62	(353)	101	(515)
Consolidated revenues	1,303	915	2,595	2,028
Allstate Financial \| Total life and annuity premiums
Segment Reporting Information
Life and annuity premiums and contract charges	286	286	598	575
Allstate Financial \| Traditional life insurance
Segment Reporting Information
Life and annuity premiums and contract charges	109	104	217	210
Allstate Financial \| Immediate annuities with life contingencies
Segment Reporting Information
Life and annuity premiums and contract charges	15	31	58	58
Allstate Financial \| Accident and health insurance:
Segment Reporting Information
Life and annuity premiums and contract charges	162	151	323	307
Allstate Financial \| Total contract charges
Segment Reporting Information
Life and annuity premiums and contract charges	261	259	518	514
Allstate Financial \| Interest-sensitive life insurance
Segment Reporting Information
Life and annuity premiums and contract charges	253	249	501	491
Allstate Financial \| Fixed annuities
Segment Reporting Information
Life and annuity premiums and contract charges	8	10	17	23
Corporate and Other
Segment Reporting Information
Service fees	2	3	4	6
Net investment income	16	16	30	31
Realized capital gains and losses	3	8	3	12
Total Corporate and Other before reclassification of service fees	21	27	37	49
Reclassification of service fees	(2)	(3)	(4)	(6)
Consolidated revenues	$ 19	$ 24	$ 33	$ 43

Business Segments (Details 2) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Segment Reporting Information
Life and annuity premiums and contract charges	$ 547	$ 545	$ 1,116	$ 1,089
Net investment income	1,020	1,049	2,002	2,099
Restructuring and related charges	11	13	20	24
Net (loss) income	(620)	145	(101)	265
Property-Liability
Segment Reporting Information
Total underwriting (loss) income	(1,502)	207	(1,175)	278
Net investment income	310	310	594	614
Income tax benefit (expense) on operations	460	(149)	279	(237)
Realized capital gains and losses, after-tax	(6)	(69)	32	(192)
Net (loss) income	(738)	299	(270)	463
Allstate Protection
Segment Reporting Information
Total underwriting (loss) income	(1,498)	209	(1,165)	284
Discontinued Lines and Coverages
Segment Reporting Information
Total underwriting (loss) income	(4)	(2)	(10)	(6)
Allstate Financial
Segment Reporting Information
Life and annuity premiums and contract charges	547	545	1,116	1,089
Net investment income	694	723	1,378	1,454
Periodic settlements and accruals on Nonhedge derivative financial instruments	19	11	36	28
Contract benefits and interest credited to contractholder funds	(834)	(935)	(1,713)	(1,840)
Operating costs and expenses and amortization of deferred policy acquisition costs	(213)	(157)	(435)	(335)
Restructuring and related charges		1	2	1
Income tax benefit (expense) on operations	(72)	(63)	(127)	(133)
Operating income	141	125	257	264
Realized capital gains and losses, after-tax	40	(230)	65	(335)
Valuation changes on embedded derivatives that are not hedged, after-tax	(3)		5
DAC and DSI (amortization) accretion relating to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax	(5)	4	(31)	2
DAC and DSI unlocking relating to realized capital gains and losses, After-tax			1	(18)
Reclassification of periodic settlements and accruals on non-hedge financial instruments, after-tax	(11)	(7)	(23)	(18)
Gain (loss) on disposition of operations, after-tax	4	1	(11)	2
Net (loss) income	166	(107)	263	(103)
Corporate and Other
Segment Reporting Information
Service fees	2	3	4	6
Net investment income	16	16	30	31
Operating costs and expenses	(100)	(104)	(193)	(204)
Income tax benefit (expense) on operations	32	33	63	65
Operating income	(50)	(52)	(96)	(102)
Realized capital gains and losses, after-tax	2	5	2	7
Net (loss) income	$ (48)	$ (47)	$ (94)	$ (95)

Other Comprehensive Income (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Pre-tax
Unrealized net holding gains and losses arising during the period, net of related offsets, Pre-tax	$ 676	$ 492	$ 1,044	$ 1,574
Less: reclassification adjustment of realized capital gains and losses, Pre-tax	111	(142)	257	(268)
Unrealized net capital gains and losses, Pre-tax	565	634	787	1,842
Unrealized foreign currency translation adjustments, Pre-tax	7	(27)	22	(5)
Unrecognized pension and other postretirement benefit cost, Pre-tax	24	31	47	57
Other comprehensive income, Pre-tax	596	638	856	1,894
Tax
Unrealized net holding gains and losses arising during the period, net of related offsets, Tax	(237)	(172)	(366)	(550)
Less: reclassification adjustment of realized capital gains and losses, Tax	(39)	50	(90)	94
Unrealized net capital gains and losses, Tax	(198)	(222)	(276)	(644)
Unrealized foreign currency translation adjustments, Tax	(3)	10	(8)	2
Unrecognized pension and other postretirement benefit cost, Tax	(7)	(10)	(15)	(19)
Other comprehensive income, Tax	(208)	(222)	(299)	(661)
After-tax
Unrealized net holding gains and losses arising during the period, net of related offsets, After-tax	439	320	678	1,024
Less: reclassification adjustment of realized capital gains and losses, After-tax	72	(92)	167	(174)
Unrealized net capital gains and losses, After-tax	367	412	511	1,198
Unrealized foreign currency translation adjustments, After-tax	4	(17)	14	(3)
Unrecognized pension and other postretirement benefit cost, After-tax	17	21	32	38
Other comprehensive income, After-tax	388	416	557	1,233
Net (loss) income	(620)	145	(101)	265
Comprehensive (loss) income	$ (232)	$ 561	$ 456	$ 1,498

Document and Entity Information	6 Months Ended
Document and Entity Information	Jun. 30, 2011	Jul. 20, 2011
Document and Entity Information
Entity Registrant Name	ALLSTATE CORP
Entity Central Index Key	0000899051
Document Type	10-Q
Document Period End Date	Jun. 30, 2011
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		516,608,362
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q2

General (Details 2) (USD $)	3 Months Ended		6 Months Ended
General (Details 2) (USD $)	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Earnings Per Share Basic [Line Items]
Earnings Per Share, Basic	$ (1.19)	$ 0.27	$ (0.19)	$ 0.49
Earnings Per Share, Diluted	$ (1.19)	$ 0.27	$ (0.19)	$ 0.49