Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2019

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 December 31, 2019 and 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  unobservable  inputs (Level 3)
At December 31, 2019			Significant other observable inputs (Level 2)				Total
Fixed maturities, available for sale:
Corporate	$	—	$	6,401	$	—	$	6,401
States, municipalities and political subdivisions	—		4,728		—		4,728
Commercial mortgage-backed	—		301		—		301
Government-sponsored enterprises	—		136		—		136
United States Government	104		—		—		104
Foreign government	—		28		—		28
Subtotal	104		11,594		—		11,698
Common equities	7,518		—		—		7,518
Nonredeemable preferred equities	—		234		—		234
Separate accounts taxable fixed maturities	—		855		—		855
Top Hat savings plan mutual funds and common   equity (included in Other assets)	45		—		—		45
Total	$	7,667	$	12,683	$	—	$	20,350
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)

Fair Value of Life Policy Loans

The following table shows the fair value of our life policy loans, included in other invested assets:

(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 December 31, 2019
Life policy loans	$	—	$	—	$	44	$	44
At December 31, 2018
Life policy loans	$	—	$	—	$	40	$	40

Debt

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 December 31, 2019
Note payable	$	—	$	39	$	—	$	39
6.900% senior debentures, due 2028	—		34		—		34
6.920% senior debentures, due 2028	—		506		—		506
6.125% senior notes, due 2034	—		512		—		512
Total	$	—	$	1,091	$	—	$	1,091
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

Deferred Annuities and Structured Settlements

Fair Values of Deferred Annuities, Structured Settlements and Other Items

The following table shows fair value 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 December 31, 2019
Deferred annuities	$	—	$	—	$	770	$	770
Structured settlements	—		212		—		212
Total	$	—	$	212	$	770	$	982
At December 31, 2018
Deferred annuities	$	—	$	—	$	742	$	742
Structured settlements	—		185		—		185
Total	$	—	$	185	$	742	$	927