Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

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 March 31, 2019, and December 31, 2018. 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 other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
At March 31, 2019
Fixed maturities, available for sale:
Corporate	$	—	$	5,887	$	1	$	5,888
States, municipalities and political subdivisions	—		4,415		4		4,419
Government-sponsored enterprises	—		302		—		302
Commercial mortgage-backed	—		297		—		297
United States government	100		—		—		100
Foreign government	—		16		—		16
Subtotal	100		10,917		5		11,022
Common equities	6,381		—		—		6,381
Nonredeemable preferred equities	—		190		—		190
Separate accounts taxable fixed maturities	—		820		—		820
Top Hat savings plan mutual funds and common equity (included in Other assets)	38		—		—		38
Total	$	6,519	$	11,927	$	5	$	18,451
At December 31, 2018
Fixed maturities, available for sale:
Corporate	$	—	$	5,709	$	1	$	5,710
States, municipalities and political subdivisions	—		4,300		4		4,304
Government-sponsored enterprises	—		310		—		310
Commercial mortgage-backed	—		288		—		288
United States government	67		—		—		67
Foreign government	—		10		—		10
Subtotal	67		10,617		5		10,689
Common equities	5,742		—		—		5,742
Nonredeemable preferred equities	—		178		—		178
Separate accounts taxable fixed maturities	—		791		—		791
Top Hat savings plan mutual funds and common   equity (included in Other assets)	34		—		—		34
Total	$	5,843	$	11,586	$	5	$	17,434

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

The following table provides the change in Level 3 assets for the three months ended March 31:

(Dollars in millions)	Asset fair value measurements using significant unobservable inputs
		Corporate fixed maturities		States, municipalities and political subdivisions fixed maturities			Total
Beginning balance, January 1, 2019		$	1	$	4		$	5
Total gains or losses (realized/unrealized):
Included in net income		—		—			—
Included in other comprehensive income		—		—			—
Purchases		—		—			—
Sales		—		—			—
Transfers into Level 3		—		—			—
Transfers out of Level 3		—		—			—
Ending balance, March 31, 2019		$	1	$	4		$	5
Beginning balance, January 1, 2018		$	1	$	5		$	6
Total gains or losses (realized/unrealized):
Included in net income (loss)		—		—			—
Included in other comprehensive income (loss)		—		(1		)	(1		)
Purchases		—		—			—
Sales		—		—			—
Transfers into Level 3		—		—			—
Transfers out of Level 3		—		—			—
Ending balance, March 31, 2018		$	1	$	4		$	5

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block]

This table summarizes the book value and principal amounts of our long-term debt:

(Dollars in millions)				Book value				Principal amount
Interest rate		Year of  issue		March 31,		December 31,		March 31,		December 31,
				2019		2018		2019		2018
6.900	%	1998	Senior debentures, due 2028	$	27	$	27	$	28	$	28
6.920	%	2005	Senior debentures, due 2028	391		391		391		391
6.125	%	2004	Senior notes, due 2034	370		370		374		374
			Total	$	788	$	788	$	793	$	793

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 March 31, 2019
Note payable	$	—	$	32	$	—	$	32
6.900% senior debentures, due 2028	—		33		—		33
6.920% senior debentures, due 2028	—		486		—		486
6.125% senior notes, due 2034	—		459		—		459
Total	$	—	$	1,010	$	—	$	1,010
At December 31, 2018
Note payable	$	—	$	32	$	—	$	32
6.900% senior debentures, due 2028	—		32		—		32
6.920% senior debentures, due 2028	—		471		—		471
6.125% senior notes, due 2034	—		440		—		440
Total	$	—	$	975	$	—	$	975

Fair Value of Life Policy Loans

The following table shows the fair value of our life policy loans included in other invested assets and the fair values 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 March 31, 2019
Life policy loans	$	—	$	—	$	41	$	41
Deferred annuities	—		—		751		751
Structured settlements	—		195		—		195
Total	$	—	$	195	$	751	$	946
At December 31, 2018
Life policy loans	$	—	$	—	$	40	$	40
Deferred annuities	—		—		742		742
Structured settlements	—		185		—		185
Total	$	—	$	185	$	742	$	927