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Income Taxes
 6 Months Ended
Jun. 30, 2013
Income Tax Disclosure [Abstract]  
Income Taxes
INCOME TAXES
 
As of June 30, 2013, and December 31, 2012, we had no liability for unrecognized tax benefits. Details about our liability for unrecognized tax benefits are found in our 2012 Annual Report on Form 10-K, Item 8, Note 11, Income Taxes, Page 129.
 
The differences between the 35 percent statutory income tax rate and our effective income tax rate were as follows:
 
(Dollars in millions)
 
Three months ended June 30,
 
Six months ended June 30,
 
 
2013
 
2012
 
2013
 
2012
Tax at statutory rate
 
$
52

 
35.0
 %
 
$
10

 
35.0
 %
 
$
128

 
35.0
 %
 
$
49

 
35.0
 %
  Increase (decrease) resulting from:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Tax-exempt income from municipal bonds
 
(9
)
 
(6.1
)
 
(8
)
 
(27.6
)
 
(16
)
 
(4.4
)
 
(17
)
 
(12.1
)
Dividend received exclusion
 
(6
)
 
(4.2
)
 
(6
)
 
(20.7
)
 
(12
)
 
(3.3
)
 
(11
)
 
(7.8
)
Other
 
1

 
1.0

 
1

 
3.0

 
1

 
0.4

 
2

 
1.2

Provision (benefit) for income taxes
 
$
38

 
25.7
 %
 
$
(3
)
 
(10.3
)%
 
$
101

 
27.7
 %
 
$
23

 
16.3
 %

 
The change in our effective tax rate was primarily due to changes in pretax income from underwriting results and realized investment gains and losses, compared with unchanged levels of permanent book-tax differences.