Investments (Tables)

12 Months Ended

Dec. 31, 2020

Analysis Of Cost Or Amortized Cost, Gross Unrealized Gains And Losses And Fair Value for Investments

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 December 31, 2020			gains		losses
Fixed-maturity securities:
Corporate	$	6,281	$	621	$	7	$	6,895
States, municipalities and political subdivisions	4,604		395		2		4,997
Commercial mortgage-backed	271		15		1		285
United States government	115		5		—		120
Foreign government	29		—		—		29
Government-sponsored enterprises	12		—		—		12

Total	$	11,312	$	1,036	$	10	$	12,338






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 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 December 31, 2020	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Fixed-maturity securities:
Corporate	$	330	$	5	$	46	$	2	$	376	$	7
States, municipalities and political subdivisions	31		2		2		—		33		2
Commercial mortgage-backed	23		1		6		—		29		1
United States government	12		—		—		—		12		—
Foreign government	10		—		—		—		10		—

Total	$	406	$	8	$	54	$	2	$	460	$	10





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

Contractual Maturity Dates For Fixed-Maturity And Short-Term Investments

Contractual maturity dates for fixed-maturity investments were:


(Dollars in millions)	Amortized cost		Fair value		% of fair value
At December 31, 2020
Maturity dates:
Due in one year or less	$	581	$	589	4.8	%
Due after one year through five years	3,450		3,697		30.0
Due after five years through ten years	3,789		4,178		33.9
Due after ten years	3,492		3,874		31.3
Total	$	11,312	$	12,338	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:


(Dollars in millions)	Years ended December 31,
	2020		2019		2018
Investment income:
Interest	$	455	$	446	$	445
Dividends	220		201		181
Other	8		12		5
Total	683		659		631
Less investment expenses	13		13		12
Total	$	670	$	646	$	619

Investment gains and losses, net:
Equity securities:
Investment gains and losses on securities sold, net	$	79	$	26	$	9
Unrealized gains and losses on securities still held, net	841		1,626		(404)



Subtotal	920		1,652		(395)
Fixed-maturity securities:
Gross realized gains	16		13		12
Gross realized losses	(3)		(3)		(2)
Write-down of impaired securities	(78)		(9)		(5)
Subtotal	(65)		1		5

Other	10		(3)		(12)
Total	$	865	$	1,650	$	(402)