Investments (Tables)

9 Months Ended

Sep. 30, 2015

Investments [Abstract]

Analysis Of Cost Or Amortized Cost, Gross Unrealized Gains And Losses And Fair Value for Investments

The following table provides cost or amortized cost, gross unrealized gains, gross unrealized losses and fair value for our investment portfolio:

(Dollars in millions)	Cost or amortized cost
			Gross unrealized				Fair value
At September 30, 2015			gains		losses
Fixed maturity securities:
Corporate	$	5,333	$	325	$	49	$	5,609
States, municipalities and political subdivisions	3,401		159		3		3,557
Commercial mortgage-backed	284		9		1		292
Government-sponsored enterprises	280		—		4		276
Foreign government	10		—		—		10
Convertibles and bonds with warrants attached	8		—		—		8
United States government	4		—		—		4
Subtotal	9,320		493		57		9,756
Equity securities:
Common equities	2,784		1,585		56		4,313
Nonredeemable preferred equities	186		28		1		213
Subtotal	2,970		1,613		57		4,526
Short-term investments	75		—		—		75
Total	$	12,365	$	2,106	$	114	$	14,357
At December 31, 2014
Fixed maturity securities:
Corporate	$	5,117	$	420	$	11	$	5,526
States, municipalities and political subdivisions	3,267		178		2		3,443
Commercial mortgage-backed	250		9		—		259
Government-sponsored enterprises	213		—		5		208
Foreign government	10		—		—		10
Convertibles and bonds with warrants attached	7		—		—		7
United States government	7		—		—		7
Subtotal	8,871		607		18		9,460
Equity securities:
Common equities	2,583		2,099		3		4,679
Nonredeemable preferred equities	145		35		1		179
Subtotal	2,728		2,134		4		4,858
Total	$	11,599	$	2,741	$	22	$	14,318

Fair Values And Unrealized Losses by Investment Category And By The Duration Of The Securities' Continuous Unrealized Loss Position

The table below provides fair values and gross unrealized losses by investment category and by the duration of the securities’ continuous unrealized loss positions:

(Dollars in millions)	Less than 12 months				12 months or more				Total
	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
At September 30, 2015
Fixed maturity securities:
Corporate	$	729	$	42	$	85	$	7	$	814	$	49
States, municipalities and political subdivisions	227		3		51		—		278		3
Commercial mortgage-backed	57		1		2		—		59		1
Government-sponsored enterprises	74		1		139		3		213		4
Foreign government	10		—		—		—		10		—
Subtotal	1,097		47		277		10		1,374		57
Equity securities:
Common equities	511		56		—		—		511		56
Nonredeemable preferred equities	43		1		—		—		43		1
Subtotal	554		57		—		—		554		57
Total	$	1,651	$	104	$	277	$	10	$	1,928	$	114
At December 31, 2014
Fixed maturity securities:
Corporate	$	261	$	8	$	90	$	3	$	351	$	11
States, municipalities and political subdivisions	17		—		135		2		152		2
Commercial mortgage-backed	3		—		23		—		26		—
Government-sponsored enterprises	11		—		181		5		192		5
Subtotal	292		8		429		10		721		18
Equity securities:
Common equities	85		3		—		—		85		3
Nonredeemable preferred equities	16		—		17		1		33		1
Subtotal	101		3		17		1		118		4
Total	$	393	$	11	$	446	$	11	$	839	$	22

Investment Income, Realized Investment Gains And Losses And Change In Unrealized Investment Gains And Losses

The following table provides investment income, realized investment gains and losses, the change in unrealized investment gains and losses, and other items:

(Dollars in millions)	Three months ended September 30,						Nine months ended September 30,
	2015			2014			2015			2014
Investment income:
Interest	$	108		$	105		$	319		$	312
Dividends	37			35			108			101
Other	1			—			2			2
Total	146			140			429			415
Less investment expenses	3			2			7			6
Total	$	143		$	138		$	422		$	409
Realized investment gains and losses summary:
Fixed maturities:
Gross realized gains	$	4		$	6		$	14		$	12
Gross realized losses	—			—			—			(4		)
Other-than-temporary impairments	(8		)	—			(11		)	—
Equity securities:
Gross realized gains	6			59			106			93
Gross realized losses	—			—			(1		)	—
Other-than-temporary impairments	—			—			(1		)	(1		)
Other	1			—			3			1
Total	$	3		$	65		$	110		$	101
Change in unrealized investment gains and losses:
Fixed maturities	$	(15	)	$	(66	)	$	(153	)	$	115
Equity securities	(350		)	(54		)	(574		)	117
Less income taxes	127			42			254			(81		)
Total	$	(238	)	$	(78	)	$	(473	)	$	151