Investments (Tables)

6 Months Ended

Jun. 30, 2016

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 June 30, 2016			gains		losses
Fixed maturity securities:
Corporate	$	5,498	$	366	$	27	$	5,837
States, municipalities and political subdivisions	3,538		264		—		3,802
Commercial mortgage-backed	293		17		—		310
Government-sponsored enterprises	170		—		—		170
Foreign government	10		—		—		10
Convertibles and bonds with warrants attached	5		—		—		5
United States government	4		—		—		4
Subtotal	9,518		647		27		10,138
Equity securities:
Common equities	3,002		2,080		65		5,017
Nonredeemable preferred equities	187		38		—		225
Subtotal	3,189		2,118		65		5,242
Total	$	12,707	$	2,765	$	92	$	15,380
At December 31, 2015
Fixed maturity securities:
Corporate	$	5,294	$	255	$	96	$	5,453
States, municipalities and political subdivisions	3,440		172		1		3,611
Commercial mortgage-backed	287		4		2		289
Government-sponsored enterprises	284		—		6		278
Foreign government	10		—		—		10
Convertibles and bonds with warrants attached	5		—		—		5
United States government	4		—		—		4
Subtotal	9,324		431		105		9,650
Equity securities:
Common equities	2,749		1,787		51		4,485
Nonredeemable preferred equities	189		32		—		221
Subtotal	2,938		1,819		51		4,706
Total	$	12,262	$	2,250	$	156	$	14,356

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 June 30, 2016
Fixed maturity securities:
Corporate	$	252	$	9	$	258	$	18	$	510	$	27
States, municipalities and political subdivisions	2		—		1		—		3		—
Commercial mortgage-backed	5		—		9		—		14		—
Government-sponsored enterprises	20		—		—		—		20		—
Subtotal	279		9		268		18		547		27
Equity securities:
Common equities	546		65		—		—		546		65
Nonredeemable preferred equities	19		—		18		—		37		—
Subtotal	565		65		18		—		583		65
Total	$	844	$	74	$	286	$	18	$	1,130	$	92
At December 31, 2015
Fixed maturity securities:
Corporate	$	1,099	$	63	$	133	$	33	$	1,232	$	96
States, municipalities and political subdivisions	47		1		22		—		69		1
Commercial mortgage-backed	103		2		2		—		105		2
Government-sponsored enterprises	100		2		127		4		227		6
Subtotal	1,349		68		284		37		1,633		105
Equity securities:
Common equities	270		51		—		—		270		51
Nonredeemable preferred equities	35		—		—		—		35		—
Subtotal	305		51		—		—		305		51
Total	$	1,654	$	119	$	284	$	37	$	1,938	$	156

Investments Classified by Contractual Maturity Date [Table Text Block]

Contractual maturity dates for fixed-maturity investments were:

(Dollars in millions)	Amortized cost		Fair value		% of fair value
At June 30, 2016
Maturity dates:
Due in one year or less	$	446	$	454	4.5	%
Due after one year through five years	3,046		3,273		32.3
Due after five years through ten years	3,708		3,896		38.4
Due after ten years	2,318		2,515		24.8
Total	$	9,518	$	10,138	100.0	%

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 June 30,						Six months ended June 30,
	2016			2015			2016			2015
Investment income:
Interest	$	110		$	106		$	219		$	211
Dividends	41			35			78			71
Other	—			1			1			1
Total	151			142			298			283
Less investment expenses	2			2			4			4
Total	$	149		$	140		$	294		$	279
Realized investment gains and losses summary:
Fixed maturities:
Gross realized gains	$	4		$	7		$	7		$	10
Gross realized losses	—			—			(1		)	—
Other-than-temporary impairments	—			(3		)	(2		)	(3		)
Equity securities:
Gross realized gains	38			56			100			100
Gross realized losses	—			—			(1		)	(1		)
Other-than-temporary impairments	—			(1		)	—			(1		)
Other	2			1			2			2
Total	$	44		$	60		$	105		$	107
Change in unrealized investment gains and losses:
Fixed maturities	$	178		$	(184	)	$	294		$	(138	)
Equity securities	111			(135		)	285			(224		)
Less income taxes	(103		)	112			(203		)	127
Total	$	186		$	(207	)	$	376		$	(235	)