Investments (Tables)

9 Months Ended

Sep. 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 September 30, 2016			gains		losses
Fixed maturity securities:
Corporate	$	5,621	$	375	$	14	$	5,982
States, municipalities and political subdivisions	3,619		222		1		3,840
Commercial mortgage-backed	290		18		—		308
Government-sponsored enterprises	108		—		—		108
Foreign government	10		—		—		10
Convertibles and bonds with warrants attached	5		—		—		5
United States government	4		—		—		4
Subtotal	9,657		615		15		10,257
Equity securities:
Common equities	2,982		2,156		61		5,077
Nonredeemable preferred equities	187		40		—		227
Subtotal	3,169		2,196		61		5,304
Total	$	12,826	$	2,811	$	76	$	15,561
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 September 30, 2016
Fixed maturity securities:
Corporate	$	166	$	4	$	200	$	10	$	366	$	14
States, municipalities and political subdivisions	128		1		—		—		128		1
Commercial mortgage-backed	8		—		3		—		11		—
Government-sponsored enterprises	43		—		—		—		43		—
Subtotal	345		5		203		10		548		15
Equity securities:
Common equities	177		6		203		55		380		61
Total	$	522	$	11	$	406	$	65	$	928	$	76
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 September 30, 2016
Maturity dates:
Due in one year or less	$	446	$	452	4.4	%
Due after one year through five years	3,049		3,265		31.8
Due after five years through ten years	3,856		4,067		39.7
Due after ten years	2,306		2,473		24.1
Total	$	9,657	$	10,257	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 September 30,						Nine months ended September 30,
	2016			2015			2016			2015
Investment income:
Interest	$	111		$	108		$	330		$	319
Dividends	39			37			117			108
Other	1			1			2			2
Total	151			146			449			429
Less investment expenses	3			3			7			7
Total	$	148		$	143		$	442		$	422
Realized investment gains and losses summary:
Fixed maturities:
Gross realized gains	$	10		$	4		$	17		$	14
Gross realized losses	—			—			(1		)	—
Other-than-temporary impairments	—			(8		)	(2		)	(11		)
Equity securities:
Gross realized gains	47			6			147			106
Gross realized losses	—			—			(1		)	(1		)
Other-than-temporary impairments	—			—			—			(1		)
Other	(1		)	1			1			3
Total	$	56		$	3		$	161		$	110
Change in unrealized investment gains and losses:
Fixed maturities	$	(20	)	$	(15	)	$	274		$	(153	)
Equity securities	82			(350		)	367			(574		)
Income tax (provision) benefit	(21		)	127			(224		)	254
Total	$	41		$	(238	)	$	417		$	(473	)