Investments (Tables)

3 Months Ended

Mar. 31, 2020

Investments [Abstract]

Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses and Fair Value of Fixed-maturity Securities

The following table provides amortized cost, gross unrealized gains, gross unrealized losses and fair value for our fixed-maturity securities:

(Dollars in millions)	Amortized cost		Gross unrealized				Fair value
At March 31, 2020			gains		losses
Fixed maturity securities:
Corporate	$	6,134	$	180	$	181	$	6,133
States, municipalities and political subdivisions	4,445		272		6		4,711
Commercial mortgage-backed	290		2		8		284
United States government	96		6		—		102
Government-sponsored enterprises	86		1		—		87
Foreign government	23		—		—		23
Total	$	11,074	$	461	$	195	$	11,340
At December 31, 2019
Fixed maturity securities:
Corporate	$	6,074	$	332	$	5	$	6,401
States, municipalities and political subdivisions	4,477		252		1		4,728
Commercial mortgage-backed	290		11		—		301
United States government	102		2		—		104
Government-sponsored enterprises	137		—		1		136
Foreign government	28		—		—		28
Total	$	11,108	$	597	$	7	$	11,698

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
At March 31, 2020	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Fixed maturity securities:
Corporate	$	2,168	$	176	$	52	$	5	$	2,220	$	181
States, municipalities and political subdivisions	76		5		3		1		79		6
Commercial mortgage-backed	163		8		—		—		163		8
United States government	—		—		—		—		—		—
Government-sponsored enterprises	—		—		—		—		—		—
Foreign government	15		—		—		—		15		—
Total	$	2,422	$	189	$	55	$	6	$	2,477	$	195
At December 31, 2019
Fixed maturity securities:
Corporate	$	199	$	2	$	118	$	3	$	317	$	5
States, municipalities and political subdivisions	98		1		10		—		108		1
Commercial mortgage-backed	6		—		—		—		6		—
United States government	—		—		4		—		4		—
Government-sponsored enterprises	26		1		51		—		77		1
Foreign government	11		—		—		—		11		—
Total	$	340	$	4	$	183	$	3	$	523	$	7

Investments Classified by Contractual Maturity Date

Contractual maturity dates for fixed-maturities investments were:

(Dollars in millions)	Amortized cost		Fair value		% of fair value
At March 31, 2020
Maturity dates:
Due in one year or less	$	502	$	502	4.4	%
Due after one year through five years	3,132		3,137		27.7
Due after five years through ten years	3,833		3,874		34.2
Due after ten years	3,607		3,827		33.7
Total	$	11,074	$	11,340	100.0	%

Investment Income, Realized Investment Gains And Losses And Change In Unrealized Investment Gains And Losses

The following table provides investment income and investment gains and losses, net:

(Dollars in millions)	Three months ended March 31,
	2020			2019
Investment income:
Interest	$	112		$	111
Dividends	53			46
Other	3			3
Total	168			160
Less investment expenses	3			3
Total	$	165		$	157
Investment gains and losses, net:
Equity securities:
Investment gains and losses on securities sold, net	$	(4	)	$	4
Unrealized gains and losses on securities still held, net	(1,649		)	652
Subtotal	(1,653		)	656
Fixed maturities:
Gross realized gains	2			2
Write-down of impaired securities	(77		)	—
Subtotal	(75		)	2
Other	3			5
Total	$	(1,725	)	$	663