Investments (Tables)

3 Months Ended

Mar. 31, 2021

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, 2021			gains		losses
Fixed maturity securities:
Corporate	$	6,426	$	505	$	11	$	6,920
States, municipalities and political subdivisions	4,641		326		7		4,960
Commercial mortgage-backed	272		14		1		285
United States government	109		4		—		113
Foreign government	24		—		—		24
Government-sponsored enterprises	6		—		—		6
Total	$	11,478	$	849	$	19	$	12,308
At December 31, 2020
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

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, 2021	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Fixed maturity securities:
Corporate	$	316	$	8	$	67	$	3	$	383	$	11
States, municipalities and political subdivisions	206		6		14		1		220		7
Commercial mortgage-backed	4		—		14		1		18		1
United States government	2		—		—		—		2		—
Foreign government	1		—		—		—		1		—
Government-sponsored enterprises	4		—		—		—		4		—
Total	$	533	$	14	$	95	$	5	$	628	$	19
At December 31, 2020
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

Investments Classified by Contractual Maturity Date

Contractual maturity dates for fixed-maturities securities were:

(Dollars in millions)	Amortized cost		Fair value		% of fair value
At March 31, 2021
Maturity dates:
Due in one year or less	$	585	$	593	4.8	%
Due after one year through five years	3,563		3,799		30.9
Due after five years through ten years	3,688		3,987		32.4
Due after ten years	3,642		3,929		31.9
Total	$	11,478	$	12,308	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,
	2021		2020
Investment income:
Interest	$	118	$	112
Dividends	58		53
Other	2		3
Total	178		168
Less investment expenses	4		3
Total	$	174	$	165
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	487		(1,649)
Subtotal	491		(1,653)
Fixed maturities:
Gross realized gains	3		2
Write-down of impaired securities	—		(77)
Subtotal	3		(75)
Other	10		3
Total	$	504	$	(1,725)