Fair Value Measurements (Tables)
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9 Months Ended |
Sep. 30, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] |
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Fair Value Hierarchy for Assets Measured at Fair Value on a Recurring Basis |
The following tables illustrate the fair value hierarchy for those assets measured at fair value on a recurring basis at September 30, 2015, and December 31, 2014. We do not have any material liabilities carried at fair value. There were no transfers between Level 1 and Level 2. | | | | | | | | | | | | | | | | | | (Dollars in millions) | | Quoted prices in active markets for identical assets (Level 1) | | Significant other observable inputs (Level 2) | | Significant unobservable inputs (Level 3) | | Total | At September 30, 2015 | | | | | Fixed maturities, available for sale: | | |
| | |
| | |
| | |
| Corporate | | $ | — |
| | $ | 5,568 |
| | $ | 41 |
| | $ | 5,609 |
| States, municipalities and political subdivisions | | — |
| | 3,557 |
| | — |
| | 3,557 |
| Commercial mortgage-backed | | — |
| | 292 |
| | — |
| | 292 |
| Government-sponsored enterprises | | — |
| | 276 |
| | — |
| | 276 |
| Foreign government | | — |
| | 10 |
| | — |
| | 10 |
| Convertibles and bonds with warrants attached | | — |
| | 8 |
| | — |
| | 8 |
| United States government | | 4 |
| | — |
| | — |
| | 4 |
| Subtotal | | 4 |
| | 9,711 |
| | 41 |
| | 9,756 |
| Common equities, available for sale | | 4,313 |
| | — |
| | — |
| | 4,313 |
| Nonredeemable preferred equities, available for sale | | — |
| | 211 |
| | 2 |
| | 213 |
| Short-term investments | | — |
| | 75 |
| | — |
| | 75 |
| Separate accounts taxable fixed maturities | | — |
| | 754 |
| | — |
| | 754 |
| Top Hat savings plan mutual funds and common equity (included in Other assets) | | 20 |
| | — |
| | — |
| | 20 |
| Total | | $ | 4,337 |
| | $ | 10,751 |
| | $ | 43 |
| | $ | 15,131 |
| At December 31, 2014 | | | | | | | | | Fixed maturities, available for sale: | | |
| | |
| | |
| | |
| Corporate | | $ | — |
| | $ | 5,508 |
| | $ | 18 |
| | $ | 5,526 |
| States, municipalities and political subdivisions | | — |
| | 3,443 |
| | — |
| | 3,443 |
| Commercial mortgage-backed | | — |
| | 259 |
| | — |
| | 259 |
| Government-sponsored enterprises | | — |
| | 208 |
| | — |
| | 208 |
| Foreign government | | — |
| | 10 |
| | — |
| | 10 |
| Convertibles and bonds with warrants attached | | — |
| | 7 |
| | — |
| | 7 |
| United States government | | 7 |
| | — |
| | — |
| | 7 |
| Subtotal | | 7 |
| | 9,435 |
| | 18 |
| | 9,460 |
| Common equities, available for sale | | 4,679 |
| | — |
| | — |
| | 4,679 |
| Nonredeemable preferred equities, available for sale | | — |
| | 177 |
| | 2 |
| | 179 |
| Separate accounts taxable fixed maturities | | — |
| | 731 |
| | — |
| | 731 |
| Top Hat savings plan mutual funds and common equity (included in Other assets) | | 18 |
| | — |
| | — |
| | 18 |
| Total | | $ | 4,704 |
| | $ | 10,343 |
| | $ | 20 |
| | $ | 15,067 |
| | | | | | | | | |
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Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) |
| | | | | | | | | | | | | | | | | | | | | | (Dollars in millions) | | Asset fair value measurements using significant unobservable inputs (Level 3) | | | Corporate fixed maturities | | Commercial mortgage- backed fixed maturities | | States, municipalities and political subdivisions fixed maturities | | Nonredeemable preferred equities | | Total | Beginning balance, June 30, 2015 | | $ | 18 |
| | $ | — |
| | $ | 1 |
| | $ | 2 |
| | $ | 21 |
| Total gains or losses (realized/unrealized): | | |
| | | | |
| | |
| | |
| Included in net income | | — |
| | — |
| | — |
| | — |
| | — |
| Included in other comprehensive income | | 1 |
| | — |
| | — |
| | — |
| | 1 |
| Purchases | | 22 |
| | — |
| | — |
| | — |
| | 22 |
| Sales | | — |
| | — |
| | — |
| | — |
| | — |
| Transfers into Level 3 | | — |
| | — |
| | — |
| | — |
| | — |
| Transfers out of Level 3 | | — |
| | — |
| | (1 | ) | | — |
| | (1 | ) | Ending balance, September 30, 2015 | | $ | 41 |
| | $ | — |
| | $ | — |
| | $ | 2 |
| | $ | 43 |
| | | | | | | | | | | | Beginning balance, June 30, 2014 | | $ | 9 |
| | $ | — |
| | $ | — |
| | $ | 2 |
| | $ | 11 |
| Total gains or losses (realized/unrealized): | | |
| | | | |
| | |
| | |
| Included in net income | | — |
| | — |
| | — |
| | — |
| | — |
| Included in other comprehensive income | | — |
| | — |
| | — |
| | — |
| | — |
| Purchases | | — |
| | — |
| | — |
| | — |
| | — |
| Sales | | — |
| | — |
| | — |
| | — |
| | — |
| Transfers into Level 3 | | 19 |
| | — |
| | — |
| | — |
| | 19 |
| Transfers out of Level 3 | | — |
| | — |
| | — |
| | — |
| | — |
| Ending balance, September 30, 2014 | | $ | 28 |
| | $ | — |
| | $ | — |
| | $ | 2 |
| | $ | 30 |
| | | | | | | | | | | |
The following table provides the change in Level 3 assets for the nine months ended September 30: | | | | | | | | | | | | | | | | | | | | | | (Dollars in millions) | Asset fair value measurements using significant unobservable inputs (Level 3) | | | Corporate fixed maturities | | Commercial mortgage- backed fixed maturities | | States, municipalities and political subdivisions fixed maturities | | Nonredeemable preferred equities | | Total | Beginning balance, January 1, 2015 | | $ | 18 |
| | $ | — |
| | $ | — |
| | $ | 2 |
| | $ | 20 |
| Total gains or losses (realized/unrealized): | | | | | | |
| | |
| | |
| Included in net income | | — |
| | — |
| | — |
| | — |
| | — |
| Included in other comprehensive income | | 1 |
| | — |
| | — |
| | — |
| | 1 |
| Purchases | | 22 |
| | — |
| | — |
| | — |
| | 22 |
| Sales | | — |
| | — |
| | — |
| | — |
| | — |
| Transfers into Level 3 | | — |
| | — |
| | 1 |
| | — |
| | 1 |
| Transfers out of Level 3 | | — |
| | — |
| | (1 | ) | | — |
| | (1 | ) | Ending balance, September 30, 2015 | | $ | 41 |
| | $ | — |
| | $ | — |
| | $ | 2 |
| | $ | 43 |
| | | | | | | | | | | | Beginning balance, January 1, 2014 | | $ | 2 |
| | $ | — |
| | $ | — |
| | $ | 2 |
| | $ | 4 |
| Total gains or losses (realized/unrealized): | | | | | | |
| | |
| | | Included in net income | | — |
| | — |
| | — |
| | — |
| | — |
| Included in other comprehensive income | | — |
| | — |
| | — |
| | — |
| | — |
| Purchases | | — |
| | — |
| | — |
| | — |
| | — |
| Sales | | — |
| | — |
| | — |
| | — |
| | — |
| Transfers into Level 3 | | 26 |
| | 5 |
| | — |
| | — |
| | 31 |
| Transfers out of Level 3 | | — |
| | (5 | ) | | — |
| | — |
| | (5 | ) | Ending balance, September 30, 2014 | | $ | 28 |
| | $ | — |
| | $ | — |
| | $ | 2 |
| | $ | 30 |
| | | | | | | | | | | |
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Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block] |
This table summarizes the book value and principal amounts of our long-term debt: | | | | | | | | | | | | | | | | | | | | | | | (Dollars in millions) | | | | Book value | | Principal amount | | | | | | | September 30, | | December 31, | | September 30, | | December 31, | Interest rate | | Year of issue | | | | 2015 | | 2014 | | 2015 | | 2014 | 6.900 | % | | 1998 | | Senior debentures, due 2028 | | $ | 28 |
| | $ | 28 |
| | $ | 28 |
| | $ | 28 |
| 6.920 | % | | 2005 | | Senior debentures, due 2028 | | 391 |
| | 391 |
| | 391 |
| | 391 |
| 6.125 | % | | 2004 | | Senior notes, due 2034 | | 372 |
| | 372 |
| | 374 |
| | 374 |
| |
| | | | Total | | $ | 791 |
| | $ | 791 |
| | $ | 793 |
| | $ | 793 |
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Fair Value of Life Policy Loans |
The following table shows the fair value of our life policy loans included in other invested assets: | | | | | | | | | | | | | | | | | | (Dollars in millions) | | Quoted prices in active markets for identical assets (Level 1) | | Significant other observable inputs (Level 2) | | Significant unobservable inputs (Level 3) | | Total | At September 30, 2015 | | | | | Life policy loans | | $ | — |
| | $ | — |
| | $ | 40 |
| | $ | 40 |
| | | | | | | | | | At December 31, 2014 | | | | | | | | | Life policy loans | | $ | — |
| | $ | — |
| | $ | 39 |
| | $ | 39 |
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Debt |
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Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] |
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Fair Values of Deferred Annuities, Structured Settlements and Other Items |
The following table shows fair values of our note payable and long-term debt: | | | | | | | | | | | | | | | | | | (Dollars in millions) | | Quoted prices in active markets for identical assets (Level 1) | | Significant other observable inputs (Level 2) | | Significant unobservable inputs (Level 3) | | Total | At September 30, 2015 | | | | | Note payable | | $ | — |
| | $ | 35 |
| | $ | — |
| | $ | 35 |
| 6.900% senior debentures, due 2028 | | — |
| | 34 |
| | — |
| | 34 |
| 6.920% senior debentures, due 2028 | | — |
| | 498 |
| | — |
| | 498 |
| 6.125% senior notes, due 2034 | | — |
| | 441 |
| | — |
| | 441 |
| Total | | $ | — |
| | $ | 1,008 |
| | $ | — |
| | $ | 1,008 |
| | | | | | | | | | At December 31, 2014 | | | | | | | | | Note payable | | $ | — |
| | $ | 49 |
| | $ | — |
| | $ | 49 |
| 6.900% senior debentures, due 2028 | | — |
| | 34 |
| | — |
| | 34 |
| 6.920% senior debentures, due 2028 | | — |
| | 496 |
| | — |
| | 496 |
| 6.125% senior notes, due 2034 | | — |
| | 449 |
| | — |
| | 449 |
| Total | | $ | — |
| | $ | 1,028 |
| | $ | — |
| | $ | 1,028 |
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Deferred Annuities, Structured Settlements, And Other |
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Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] |
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Fair Values of Deferred Annuities, Structured Settlements and Other Items |
The following table shows fair values of our deferred annuities and structured settlements included in life policy and investment contract reserves: | | | | | | | | | | | | | | | | | | (Dollars in millions) | | Quoted prices in active markets for identical assets (Level 1) | | Significant other observable inputs (Level 2) | | Significant unobservable inputs (Level 3) | | Total | At September 30, 2015 | | | | | Deferred annuities | | $ | — |
| | $ | — |
| | $ | 892 |
| | $ | 892 |
| Structured settlements | | — |
| | 208 |
| | — |
| | 208 |
| Total | | $ | — |
| | $ | 208 |
| | $ | 892 |
| | $ | 1,100 |
| | | | | | | | | | At December 31, 2014 | | | | | | | | | Deferred annuities | | $ | — |
| | $ | — |
| | $ | 897 |
| | $ | 897 |
| Structured settlements | | — |
| | 217 |
| | — |
| | 217 |
| Total | | $ | — |
| | $ | 217 |
| | $ | 897 |
| | $ | 1,114 |
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