Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 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 September 30, 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 September 30, 2019
Fixed maturities, available for sale:
Corporate	$	—	$	6,410	$	—	$	6,410
States, municipalities and political subdivisions	—		4,590		—		4,590
Commercial mortgage-backed	—		305		—		305
Government-sponsored enterprises	—		162		—		162
United States government	109		—		—		109
Foreign government	—		24		—		24
Subtotal	109		11,491		—		11,600
Common equities	6,956		—		—		6,956
Nonredeemable preferred equities	—		220		—		220
Separate accounts taxable fixed maturities	—		868		—		868
Top Hat savings plan mutual funds and common equity (included in Other assets)	45		—		—		45
Total	$	7,110	$	12,579	$	—	$	19,689
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
Commercial mortgage-backed	—		288		—		288
Government-sponsored enterprises	—		310		—		310
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)

(Dollars in millions)	Asset fair value measurements using significant unobservable inputs
	Corporate fixed maturities			States, municipalities and political subdivisions fixed maturities			Total
Beginning balance, July 1, 2019	$	1		$	4		$	5
Total gains or losses (realized/unrealized):
Included in net income	—			—			—
Included in other comprehensive income	—			—			—
Purchases	—			—			—
Sales	(1		)	—			(1		)
Transfers into Level 3	—			—			—
Transfers out of Level 3	—			(4		)	(4		)
Ending balance, September 30, 2019	$	—		$	—		$	—
Beginning balance, July 1, 2018	$	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, September 30, 2018	$	1		$	4		$	5

The following table provides the changes in Level 3 assets for the nine months ended September 30, 2019:

(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		(1		)	—			(1		)
Transfers into Level 3		—			—			—
Transfers out of Level 3		—			(4		)	(4		)
Ending balance, September 30, 2019		$	—		$	—		$	—
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, September 30, 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		September 30,		December 31,		September 30,		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 September 30, 2019
Note payable	$	—	$	38	$	—	$	38
6.900% senior debentures, due 2028	—		35		—		35
6.920% senior debentures, due 2028	—		512		—		512
6.125% senior notes, due 2034	—		510		—		510
Total	$	—	$	1,095	$	—	$	1,095
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 September 30, 2019
Life policy loans	$	—	$	—	$	43	$	43
Deferred annuities	—		—		787		787
Structured settlements	—		212		—		212
Total	$	—	$	212	$	787	$	999
At December 31, 2018
Life policy loans	$	—	$	—	$	40	$	40
Deferred annuities	—		—		742		742
Structured settlements	—		185		—		185
Total	$	—	$	185	$	742	$	927