Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2021

Fair Value Hierarchy for Assets Measured at Fair Value on a Recurring Basis

The following tables illustrate the fair value hierarchy for those assets measured at fair value on a recurring basis at December 31, 2021 and 2020. We do not have any liabilities carried at fair value.

(Dollars in millions)	Quoted prices in active markets for identical assets (Level 1)				Significant  unobservable  inputs (Level 3)
At December 31, 2021			Significant other observable inputs (Level 2)				Total
Fixed maturities, available for sale:
Corporate	$	—	$	7,497	$	—	$	7,497
States, municipalities and political subdivisions	—		5,095		—		5,095
Commercial mortgage-backed	—		273		—		273
United States government	123		—		—		123
Foreign government	—		26		—		26
Government-sponsored enterprises	—		8		—		8
Subtotal	123		12,899		—		13,022
Common equities	10,862		—		—		10,862
Nonredeemable preferred equities	—		453		—		453
Separate accounts taxable fixed maturities	—		948		—		948
Top Hat savings plan mutual funds and common   equity (included in Other assets)	64		—		—		64
Total	$	11,049	$	14,300	$	—	$	25,349
At December 31, 2020
Fixed maturities, available for sale:
Corporate	$	—	$	6,895	$	—	$	6,895
States, municipalities and political subdivisions	—		4,997		—		4,997
Commercial mortgage-backed	—		285		—		285
United States government	120		—		—		120
Foreign government	—		29		—		29
Government-sponsored enterprises	—		12		—		12
Subtotal	120		12,218		—		12,338
Common equities	8,541		—		—		8,541
Nonredeemable preferred equities	—		315		—		315
Separate accounts taxable fixed maturities	—		903		—		903
Top Hat savings plan mutual funds and common   equity (included in Other assets)	51		—		—		51
Total	$	8,712	$	13,436	$	—	$	22,148

Fair Value of Life Policy Loans

The following table shows the fair value of our life policy loans, included in other invested assets:

(Dollars in millions)	Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs  (Level 2)		Significant  unobservable  inputs (Level 3)		Total
At December 31, 2021
Life policy loans	$	—	$	—	$	44	$	44
At December 31, 2020
Life policy loans	$	—	$	—	$	49	$	49

Deferred Annuities and Structured Settlements

Fair Values of Deferred Annuities, Structured Settlements and Other Items

The following table shows fair value of our deferred annuities and structured settlements included in life policy and investment contract reserves:

(Dollars in millions)	Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs  (Level 2)		Significant unobservable inputs (Level 3)		Total
At December 31, 2021
Deferred annuities	$	—	$	—	$	778	$	778
Structured settlements	—		201		—		201
Total	$	—	$	201	$	778	$	979
At December 31, 2020
Deferred annuities	$	—	$	—	$	836	$	836
Structured settlements	—		227		—		227
Total	$	—	$	227	$	836	$	1,063

Debt

Fair Values of Deferred Annuities, Structured Settlements and Other Items

The following table shows fair values of our note payable and long-term debt:

(Dollars in millions)	Quoted prices in active markets for  identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
At December 31, 2021
Note payable	$	—	$	54	$	—	$	54
6.900% senior debentures, due 2028	—		34		—		34
6.920% senior debentures, due 2028	—		501		—		501
6.125% senior notes, due 2034	—		510		—		510
Total	$	—	$	1,099	$	—	$	1,099
At December 31, 2020
Note payable	$	—	$	54	$	—	$	54
6.900% senior debentures, due 2028	—		35		—		35
6.920% senior debentures, due 2028	—		515		—		515
6.125% senior notes, due 2034	—		522		—		522
Total	$	—	$	1,126	$	—	$	1,126