Investments (Tables)

9 Months Ended

Sep. 30, 2017

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 fixed-maturity and equity securities:

(Dollars in millions)	Cost or amortized cost
			Gross unrealized				Fair value
At September 30, 2017			gains		losses
Fixed maturity securities:
Corporate	$	5,514	$	280	$	11	$	5,783
States, municipalities and political subdivisions	4,103		144		13		4,234
Commercial mortgage-backed	280		8		—		288
Government-sponsored enterprises	207		—		3		204
United States government	16		—		—		16
Foreign government	10		—		—		10
Convertibles and bonds with warrants attached	5		—		—		5
Subtotal	10,135		432		27		10,540
Equity securities:
Common equities	3,084		2,762		38		5,808
Nonredeemable preferred equities	180		37		—		217
Subtotal	3,264		2,799		38		6,025
Total	$	13,399	$	3,231	$	65	$	16,565
At December 31, 2016
Fixed maturity securities:
Corporate	$	5,555	$	252	$	26	$	5,781
States, municipalities and political subdivisions	3,770		100		42		3,828
Commercial mortgage-backed	282		7		2		287
Government-sponsored enterprises	167		—		3		164
United States government	10		—		—		10
Foreign government	10		—		—		10
Convertibles and bonds with warrants attached	5		—		—		5
Subtotal	9,799		359		73		10,085
Equity securities:
Common equities	2,812		2,320		9		5,123
Nonredeemable preferred equities	183		28		—		211
Subtotal	2,995		2,348		9		5,334
Total	$	12,794	$	2,707	$	82	$	15,419

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, 2017
Fixed maturity securities:
Corporate	$	231	$	4	$	193	$	7	$	424	$	11
States, municipalities and political subdivisions	508		8		122		5		630		13
Commercial mortgage-backed securities	43		—		3		—		46		—
Government-sponsored enterprises	152		3		43		—		195		3
United States government	7		—		—		—		7		—
Subtotal	941		15		361		12		1,302		27
Equity securities:
Common equities	276		38		—		—		276		38
Subtotal	276		38		—		—		276		38
Total	$	1,217	$	53	$	361	$	12	$	1,578	$	65
At December 31, 2016
Fixed maturity securities:
Corporate	$	733	$	15	$	189	$	11	$	922	$	26
States, municipalities and political subdivisions	989		42		—		—		989		42
Commercial mortgage-backed	89		2		2		—		91		2
Government-sponsored enterprises	155		3		—		—		155		3
United States government	6		—		—		—		6		—
Subtotal	1,972		62		191		11		2,163		73
Equity securities:
Common equities	103		9		—		—		103		9
Nonredeemable preferred equities	4		—		—		—		4		—
Subtotal	107		9		—		—		107		9
Total	$	2,079	$	71	$	191	$	11	$	2,270	$	82

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, 2017
Maturity dates:
Due in one year or less	$	674	$	686	6.5	%
Due after one year through five years	2,668		2,803		26.6
Due after five years through ten years	3,853		4,009		38.0
Due after ten years	2,940		3,042		28.9
Total	$	10,135	$	10,540	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:

(Dollars in millions)	Three months ended September 30,						Nine months ended September 30,
	2017			2016			2017			2016
Investment income:
Interest	$	112		$	111		$	334		$	330
Dividends	43			39			124			117
Other	1			1			3			2
Total	156			151			461			449
Less investment expenses	3			3			8			7
Total	$	153		$	148		$	453		$	442
Realized investment gains and losses:
Fixed maturities:
Gross realized gains	$	3		$	10		$	16		$	17
Gross realized losses	—			—			—			(1		)
Other-than-temporary impairments	—			—			(6		)	(2		)
Equity securities:
Gross realized gains	1			47			160			147
Gross realized losses	—			—			(14		)	(1		)
Other-than-temporary impairments	—			—			(3		)	—
Other	3			(1		)	3			1
Total	$	7		$	56		$	156		$	161
Change in unrealized investment gains and losses:
Fixed maturities	$	9		$	(20	)	$	119		$	274
Equity securities	180			82			422			367
Income tax provision	(66		)	(21		)	(189		)	(224		)
Total	$	123		$	41		$	352		$	417