Investments (Tables)

3 Months Ended

Mar. 31, 2022

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, 2022			gains		losses
Fixed maturity securities:
Corporate	$	7,131	$	184	$	166	$	7,149
States, municipalities and political subdivisions	4,780		106		76		4,810
Commercial mortgage-backed	267		1		2		266
United States government	113		—		1		112
Foreign government	25		—		—		25
Government-sponsored enterprises	14		—		—		14
Total	$	12,330	$	291	$	245	$	12,376
At December 31, 2021
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

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 March 31, 2022	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Fixed maturity securities:
Corporate	$	2,603	$	157	$	78	$	9	$	2,681	$	166
States, municipalities and political subdivisions	977		72		21		4		998		76
Commercial mortgage-backed	128		2		10		—		138		2
United States government	72		1		—		—		72		1
Foreign government	7		—		—		—		7		—
Government-sponsored enterprises	10		—		3		—		13		—
Total	$	3,797	$	232	$	112	$	13	$	3,909	$	245
At December 31, 2021
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

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, 2022
Maturity dates:
Due in one year or less	$	686	$	690	5.6	%
Due after one year through five years	3,636		3,690		29.8
Due after five years through ten years	3,460		3,525		28.5
Due after ten years	4,548		4,471		36.1
Total	$	12,330	$	12,376	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,
	2022		2021
Investment income:
Interest	$	123	$	118
Dividends	65		58
Other	1		2
Total	189		178
Less investment expenses	4		4
Total	$	185	$	174
Investment gains and losses, net:
Equity securities:
Investment gains and losses on securities sold, net	$	8	$	4
Unrealized gains and losses on securities still held, net	(683)		487
Subtotal	(675)		491
Fixed maturities:
Gross realized gains	4		3
Gross realized losses	(1)		—
Subtotal	3		3
Other	6		10
Total	$	(666)	$	504