Investments (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2022			gains		losses
Fixed maturity securities:
Corporate	$	7,167	$	60	$	424	$	6,803
States, municipalities and political subdivisions	4,845		38		229		4,654
Commercial mortgage-backed	256		—		7		249
United States government	146		—		2		144
Government-sponsored enterprises	60		—		—		60
Foreign government	23		—		—		23
Total	$	12,497	$	98	$	662	$	11,933
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
Government-sponsored enterprises	8		—		—		8
Foreign government	26		—		—		26
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 June 30, 2022	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Fixed maturity securities:
Corporate	$	4,768	$	398	$	107	$	26	$	4,875	$	424
States, municipalities and political subdivisions	2,341		223		20		6		2,361		229
Commercial mortgage-backed	237		7		10		—		247		7
United States government	85		2		11		—		96		2
Government-sponsored enterprises	36		—		3		—		39		—
Foreign government	16		—		—		—		16		—
Total	$	7,483	$	630	$	151	$	32	$	7,634	$	662
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		—
Government-sponsored enterprises	7		—		—		—		7		—
Foreign government	16		—		—		—		16		—
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 June 30, 2022
Maturity dates:
Due in one year or less	$	645	$	645	5.4	%
Due after one year through five years	3,721		3,670		30.8
Due after five years through ten years	3,519		3,416		28.6
Due after ten years	4,612		4,202		35.2
Total	$	12,497	$	11,933	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 June 30,				Six months ended June 30,
	2022		2021		2022		2021
Investment income:
Interest	$	124	$	117	$	247	$	235
Dividends	72		60		137		118
Other	2		1		3		3
Total	198		178		387		356
Less investment expenses	3		3		7		7
Total	$	195	$	175	$	380	$	349
Investment gains and losses, net:
Equity securities:
Investment gains and losses on securities sold, net	$	5	$	—	$	37	$	6
Unrealized gains and losses on securities still held, net	(1,175)		489		(1,882)		974
Subtotal	(1,170)		489		(1,845)		980
Fixed maturities:
Gross realized gains	2		11		6		14
Gross realized losses	(2)		(2)		(3)		(2)
Subtotal	—		9		3		12
Other	16		22		22		32
Total	$	(1,154)	$	520	$	(1,820)	$	1,024