Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2015

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 December 31, 2015 and 2014. We do not have any 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  unobservable  inputs (Level 3)
At December 31, 2015			Significant other observable inputs (Level 2)				Total
Fixed maturities, available for sale:
Corporate	$	—	$	5,402	$	51	$	5,453
States, municipalities and political subdivisions	—		3,611		—		3,611
Commercial mortgage-backed	—		289		—		289
Government-sponsored enterprises	—		278		—		278
Foreign government	—		10		—		10
Convertibles and bonds with warrants attached	—		5		—		5
United States government	4		—		—		4
Subtotal	4		9,595		51		9,650
Common equities, available for sale	4,485		—		—		4,485
Nonredeemable preferred equities,   available for sale	—		218		3		221
Separate accounts taxable fixed maturities	—		736		1		737
Top Hat savings plan mutual funds and common   equity (included in Other assets)	21		—		—		21
Total	$	4,510	$	10,549	$	55	$	15,114
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

Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3)

The following table provides the change in Level 3 assets during 2015 and 2014:

(Dollars in millions)	Asset fair value measurements using significant unobservable input
		Corporate fixed maturities			Taxable fixed maturities-separate accounts		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		36			1		—		37
Sales		—			—		—		—
Transfers into Level 3		—			—		—		—
Transfers out of Level 3		(3		)	—		—		(3		)
Ending balance, December 31, 2015		$	51		$	1	$	3	$	55
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		16			—		—		16
Transfers out of Level 3		—			—		—		—
Ending balance, December 31, 2014		$	18		$	—	$	2	$	20

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 December 31, 2015
Life policy loans	$	—	$	—	$	40	$	40
At December 31, 2014
Life policy loans	$	—	$	—	$	39	$	39

Debt

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 December 31, 2015
Note payable	$	—	$	35	$	—	$	35
6.900% senior debentures, due 2028	—		31		—		31
6.920% senior debentures, due 2028	—		480		—		480
6.125% senior notes, due 2034	—		425		—		425
Total	$	—	$	971	$	—	$	971
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

Deferred Annuities and Structured Settlements

Fair Values of Deferred Annuities, Structured Settlements and Other Items

The following table shows fair value 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 December 31, 2015
Deferred annuities	$	—	$	—	$	886	$	886
Structured settlements	—		208		—		208
Total	$	—	$	208	$	886	$	1,094
At December 31, 2014
Deferred annuities	$	—	$	—	$	897	$	897
Structured settlements	—		217		—		217
Total	$	—	$	217	$	897	$	1,114