Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Components Of Deferred Tax Assets And Liabilities

The significant components of deferred tax assets and liabilities included in the consolidated balance sheets at December 31 were as follows:

(Dollars in millions)	At December 31,
	2016		2015
Deferred tax assets:
Loss and loss expense reserves	$	199	$	191
Unearned premiums	158		151
Investments	5		25
Other	52		42
Total gross deferred tax assets	414		409
Deferred tax liabilities:
Unrealized investment gains, net	907		719
Deferred acquisition costs	195		187
Life policy reserves	162		137
Other	15		4
Total gross deferred tax liabilities	1,279		1,047
Net deferred income tax liability	$	865	$	638

Differences Between The 35 Percent Statutory Income Tax Rate And Effective Income Tax Rate

The differences between the 35 percent statutory federal income tax rate and our effective income tax rate were as follows:

(Dollars in millions)	Years ended December 31,
	2016					2015					2014
Tax at statutory rate:	$	284		35.0	%	$	308		35.0	%	$	252		35.0	%
Increase (decrease) resulting from:
Tax-exempt income from municipal bonds	(34		)	(4.2	)	(33		)	(3.7	)	(33		)	(4.6	)
Dividend received exclusion	(33		)	(4.1	)	(32		)	(3.6	)	(29		)	(4.0	)
Other	4			0.5		4			0.3		6			0.8
Provision for income taxes	$	221		27.2	%	$	247		28.0	%	$	196		27.2	%