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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2012
Income (Loss) From Operations Before Provision (Benefit) For Income Taxes |
|  | Years Ended December 31, |
In millions |  | 2012 |  |  | 2011 |  |  | 2010 |
Domestic |  | $ | 1,486 |  |  | $ | (2,231) |  |  | $ | (146) |
Foreign |  |  | 112 |  |  |  | (8) |  |  |  | 51 |
Income (loss) before income taxes |  | $ | 1,598 |  |  | $ | (2,239) |  |  | $ | (95) |
Income Tax Expense (Benefit) On Income (Loss) And Shareholders' Equity |
|  | Years Ended December 31, |
In millions |  | 2012 |  |  | 2011 |  |  | 2010 |
Current taxes: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 3 |  |  | $ | (1) |  |  | $ | 91 |
State |  |  | 2 |  |  |  | 1 |  |  |  | (17) |
Foreign |  |  | (6) |  |  |  | 15 |  |  |  | (1) |
Deferred taxes: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 350 |  |  |  | (919) |  |  |  | (239) |
Foreign |  |  | 15 |  |  |  | (16) |  |  |  | 18 |
Provision (benefit) for income taxes |  |  | 364 |  |  |  | (920) |  |  |  | (148) |
Income taxes charged (credited) to shareholders’ equity related to: |  |  |  |  |  |  |  |  |  |  |  |
Total adjustments due to the adoption of new accounting standards |  |  | — |  |  |  | — |  |  |  | (21) |
Change in unrealized gains and losses on investments |  |  | 75 |  |  |  | 119 |  |  |  | 112 |
Change in other-than-temporary impairment losses |  |  | 42 |  |  |  | 3 |  |  |  | (4) |
Change in fair value of derivative instruments |  |  | 11 |  |  |  | 3 |  |  |  | (7) |
Change in foreign currency translation |  |  | (2) |  |  |  | (1) |  |  |  | 2 |
Share-based compensation |  |  | 7 |  |  |  | 4 |  |  |  | 3 |
Total income taxes charged (credited) to shareholders’ equity |  |  | 133 |  |  |  | 128 |  |  |  | 85 |
Total effect of income taxes |  | $ | 497 |  |  | $ | (792) |  |  | $ | (63) |
Effective Income Tax Rate Reconciliation From Statutory Rate Due To Tax Effect |
|  | Years Ended December 31, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
Federal income tax computed at the statutory rate |  |  | 35.0% |  |  |  | 35.0% |  |  |  | 35.0% |
Increase (reduction) in taxes resulting from: |  |  |  |  |  |  |  |  |  |  |  |
Tax-exempt interest |  |  | (0.7)% |  |  |  | 1.5% |  |  |  | 40.2% |
Mark-to-market on warrants |  |  | (0.7)% |  |  |  | 0.3% |  |  |  | (11.2)% |
Change in valuation allowance |  |  | (5.6)% |  |  |  | 6.2% |  |  |  | 119.4% |
Change in uncertain tax positions |  |  | (0.1)% |  |  |  | (1.0)% |  |  |  | (22.3)% |
State income tax, net of federal benefit |  |  | 0.1% |  |  |  | 0.0% |  |  |  | 11.5% |
Out-of-period adjustment |  |  | (3.8)% |  |  |  | 0.0% |  |  |  | 0.0% |
Tax return and deferred inventory adjustments |  |  | (0.3)% |  |  |  | (0.2)% |  |  |  | (13.6)% |
Foreign taxes |  |  | (1.2)% |  |  |  | 0.1% |  |  |  | (1.8)% |
Other |  |  | 0.1% |  |  |  | (0.8)% |  |  |  | (1.4)% |
Effective tax rate |  |  | 22.8% |  |  |  | 41.1% |  |  |  | 155.8% |
Deferred Tax Assets And Liabilities |
|  | As of December 31, |
In millions |  | 2012 |  |  | 2011 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Unearned premium revenue |  | $ | 241 |  |  | $ | 174 |
Loss and loss adjustment expense reserves |  |  | — |  |  |  | 31 |
Deferral of cancellation of indebtedness income |  |  | 114 |  |  |  | 119 |
Deferred acquisition costs |  |  | 102 |  |  |  | 123 |
Investments in VIEs |  |  | — |  |  |  | 154 |
Net unrealized gains in accumulated other comprehensive income |  |  | 32 |  |  |  | — |
Other |  |  | 64 |  |  |  | — |
Total gross deferred tax liabilities |  |  | 553 |  |  |  | 601 |
Deferred tax assets: |  |  |  |  |  |  |  |
Compensation and employee benefits |  |  | 23 |  |  |  | 40 |
Loss and loss adjustment expense reserves |  |  | 112 |  |  |  | — |
Net operating loss and tax credit carryforwards |  |  | 441 |  |  |  | 330 |
Capital loss carryforward and other-than-temporary impairments |  |  | 183 |  |  |  | 236 |
Net unrealized losses on insured derivatives |  |  | 982 |  |  |  | 1,614 |
Net losses on financial instruments at fair value and foreign exchange |  |  | 98 |  |  |  | 58 |
Net unrealized losses in accumulated other comprehensive income |  |  | — |  |  |  | 105 |
Alternative minimum tax credit carryforward |  |  | 19 |  |  |  | 22 |
Net deferred taxes on VIEs |  |  | 40 |  |  |  | 73 |
Other |  |  | — |  |  |  | 104 |
Total gross deferred tax assets |  |  | 1,898 |  |  |  | 2,582 |
Valuation allowance |  |  | 146 |  |  |  | 236 |
Net deferred tax asset |  | $ | 1,199 |  |  | $ | 1,745 |
Change In Unrecognized Tax Benefits ("UTB") And Related Interest And Penalties To Income Tax |
In millions |  |  |
Unrecognized tax benefit as of January 1, 2010 |  | $ | 10 |
The gross amount of the increase/(decrease) in the UTB as a result of tax positions taken: |  |  |  |
During a prior year |  |  | 21 |
The amounts of decreases in the UTB as a result of the applicable statute of limitations |  |  | (5) |
Unrecognized tax benefit as of December 31, 2010 |  | $ | 26 |
The gross amount of the increase/(decrease) in the UTB as a result of tax positions taken: |  |  |  |
During a prior year |  |  | 21 |
Unrecognized tax benefit as of December 31, 2011 |  | $ | 47 |
The gross amount of the increase/(decrease) in the UTB as a result of tax positions taken: |  |  |  |
During the current year |  |  | 26 |
The amounts of decreases in the UTB related to settlements with taxing authorities |  |  | (26) |
Unrecognized tax benefit as of December 31, 2012 |  | $ | 47 |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 + Details
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- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
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- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32687-109319 + Details
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