Investments (Tables)

9 Months Ended

Sep. 30, 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 September 30, 2020			gains		losses
Fixed maturity securities:
Corporate	$	6,264	$	532	$	27	$	6,769
States, municipalities and political subdivisions	4,579		366		3		4,942
Commercial mortgage-backed	271		13		2		282
United States government	119		5		—		124
Foreign government	27		—		—		27
Government-sponsored enterprises	13		—		—		13
Total	$	11,273	$	916	$	32	$	12,157
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
Foreign government	28		—		—		28
Government-sponsored enterprises	137		—		1		136
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 September 30, 2020	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Fixed maturity securities:
Corporate	$	600	$	23	$	62	$	4	$	662	$	27
States, municipalities and political subdivisions	121		3		2		—		123		3
Commercial mortgage-backed	38		2		—		—		38		2
United States government	—		—		—		—		—		—
Foreign government	16		—		—		—		16		—
Government-sponsored enterprises	—		—		—		—		—		—
Total	$	775	$	28	$	64	$	4	$	839	$	32
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		—
Foreign government	11		—		—		—		11		—
Government-sponsored enterprises	26		1		51		—		77		1
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 September 30, 2020
Maturity dates:
Due in one year or less	$	600	$	608	5.0	%
Due after one year through five years	3,293		3,500		28.8
Due after five years through ten years	3,879		4,212		34.6
Due after ten years	3,501		3,837		31.6
Total	$	11,273	$	12,157	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 September 30,				Nine months ended September 30,
	2020		2019		2020		2019
Investment income:
Interest	$	113	$	110	$	339	$	332
Dividends	55		50		161		146
Other	2		5		7		10
Total	170		165		507		488
Less investment expenses	3		4		9		10
Total	$	167	$	161	$	498	$	478
Investment gains and losses, net:
Equity securities:
Investment gains and losses on securities sold, net	$	55	$	—	$	75	$	27
Unrealized gains and losses on securities still held, net	475		89		(130)		1,084
Subtotal	530		89		(55)		1,111
Fixed maturities:
Gross realized gains	4		6		9		9
Gross realized losses	—		(1)		(3)		(3)
Write-down of impaired securities	(1)		(6)		(78)		(6)
Subtotal	3		(1)		(72)		—
Other	—		(2)		(5)		2
Total	$	533	$	86	$	(132)	$	1,113