Investments (Tables)

12 Months Ended

Dec. 31, 2021

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 December 31, 2021			gains		losses
Fixed-maturity securities:
Corporate	$	7,043	$	467	$	13	$	7,497
States, municipalities and political subdivisions	4,768		330		3		5,095
Commercial mortgage-backed	264		9		—		273
United States government	121		2		—		123
Foreign government	26		—		—		26
Government-sponsored enterprises	8		—		—		8

Total	$	12,230	$	808	$	16	$	13,022






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 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, 2021	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Fixed-maturity securities:
Corporate	$	861	$	13	$	15	$	—	$	876	$	13
States, municipalities and political subdivisions	105		2		2		1		107		3
Commercial mortgage-backed	10		—		11		—		21		—
United States government	48		—		—		—		48		—
Foreign government	16		—		—		—		16		—
Government-sponsored enterprises	7		—		—		—		7		—
Total	$	1,047	$	15	$	28	$	1	$	1,075	$	16





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		—
Government-sponsored enterprises	—		—		—		—		—		—
Total	$	406	$	8	$	54	$	2	$	460	$	10

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, 2021
Maturity dates:
Due in one year or less	$	689	$	697	5.4	%
Due after one year through five years	3,675		3,871		29.7
Due after five years through ten years	3,404		3,678		28.2
Due after ten years	4,462		4,776		36.7
Total	$	12,230	$	13,022	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,
	2021		2020		2019
Investment income:
Interest	$	477	$	455	$	446
Dividends	246		220		201
Other	5		8		12
Total	728		683		659
Less investment expenses	14		13		13
Total	$	714	$	670	$	646

Investment gains and losses, net:
Equity securities:
Investment gains and losses on securities sold, net	$	4	$	79	$	26
Unrealized gains and losses on securities still held, net	2,278		841		1,626



Subtotal	2,282		920		1,652
Fixed-maturity securities:
Gross realized gains	36		16		13
Gross realized losses	(5)		(3)		(3)
Write-down of impaired securities	(1)		(78)		(9)
Subtotal	30		(65)		1

Other	97		10		(3)
Total	$	2,409	$	865	$	1,650