Investments (Tables)

9 Months Ended

Sep. 30, 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 September 30, 2021			gains		losses
Fixed maturity securities:
Corporate	$	6,962	$	542	$	8	$	7,496
States, municipalities and political subdivisions	4,646		328		4		4,970
Commercial mortgage-backed	266		13		—		279
United States government	127		3		—		130
Foreign government	26		—		—		26
Government-sponsored enterprises	7		—		—		7
Total	$	12,034	$	886	$	12	$	12,908
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 Value 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, 2021	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Fixed maturity securities:
Corporate	$	647	$	8	$	17	$	—	$	664	$	8
States, municipalities and political subdivisions	154		3		5		1		159		4
Commercial mortgage-backed	7		—		11		—		18		—
United States government	6		—		—		—		6		—
Foreign government	—		—		—		—		—		—
Government-sponsored enterprises	4		—		—		—		4		—
Total	$	818	$	11	$	33	$	1	$	851	$	12
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 September 30, 2021
Maturity dates:
Due in one year or less	$	572	$	580	4.5	%
Due after one year through five years	3,722		3,961		30.7
Due after five years through ten years	3,445		3,751		29.1
Due after ten years	4,295		4,616		35.7
Total	$	12,034	$	12,908	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,
	2021		2020		2021		2020
Investment income:
Interest	$	121	$	113	$	356	$	339
Dividends	61		55		179		161
Other	1		2		4		7
Total	183		170		539		507
Less investment expenses	4		3		11		9
Total	$	179	$	167	$	528	$	498
Investment gains and losses, net:
Equity securities:
Investment gains and losses on securities sold, net	$	(1)	$	55	$	6	$	75
Unrealized gains and losses on securities still held, net	(104)		475		869		(130)
Subtotal	(105)		530		875		(55)
Fixed maturities:
Gross realized gains	10		4		24		9
Gross realized losses	(1)		—		(3)		(3)
Write-down of impaired securities	(1)		(1)		(1)		(78)
Subtotal	8		3		20		(72)
Other	27		—		59		(5)
Total	$	(70)	$	533	$	954	$	(132)