Investments (Tables)

3 Months Ended

Mar. 31, 2023

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, 2023			gains		losses
Fixed-maturity securities:
Corporate	$	7,568	$	49	$	526	$	7,091
States, municipalities and political subdivisions	4,933		42		226		4,749
Government-sponsored enterprises	390		1		4		387
Commercial mortgage-backed	241		—		16		225
United States government	199		—		4		195
Foreign government	31		—		—		31
Total	$	13,362	$	92	$	776	$	12,678
At December 31, 2022
Fixed-maturity securities:
Corporate	$	7,412	$	37	$	580	$	6,869
States, municipalities and political subdivisions	4,901		24		303		4,622
Government-sponsored enterprises	186		—		3		183
Commercial mortgage-backed	250		—		16		234
United States government	196		—		5		191
Foreign government	34		—		1		33
Total	$	12,979	$	61	$	908	$	12,132

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, 2023	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Fixed-maturity securities:
Corporate	$	3,910	$	158	$	2,273	$	368	$	6,183	$	526
States, municipalities and political subdivisions	1,287		48		890		178		2,177		226
Government-sponsored enterprises	263		3		7		1		270		4
Commercial mortgage-backed	107		5		116		11		223		16
United States government	121		1		52		3		173		4
Foreign government	10		—		2		—		12		—
Total	$	5,698	$	215	$	3,340	$	561	$	9,038	$	776
At December 31, 2022
Fixed-maturity securities:
Corporate	$	5,651	$	412	$	661	$	168	$	6,312	$	580
States, municipalities and political subdivisions	2,600		274		77		29		2,677		303
Government-sponsored enterprises	123		3		3		—		126		3
Commercial mortgage-backed	215		13		14		3		229		16
United States government	146		3		41		2		187		5
Foreign government	25		1		4		—		29		1
Total	$	8,760	$	706	$	800	$	202	$	9,560	$	908

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, 2023
Maturity dates:
Due in one year or less	$	728	$	725	5.7	%
Due after one year through five years	4,139		4,003		31.6
Due after five years through ten years	3,583		3,447		27.2
Due after ten years	4,912		4,503		35.5
Total	$	13,362	$	12,678	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,
	2023		2022
Investment income:
Interest	$	140	$	123
Dividends	66		65
Other	7		1
Total	213		189
Less investment expenses	3		4
Total	$	210	$	185
Investment gains and losses, net:
Equity securities:
Investment gains and losses on securities sold, net	$	(1)	$	8
Unrealized gains and losses on securities still held, net	106		(683)
Subtotal	105		(675)
Fixed-maturity securities:
Gross realized gains	1		4
Gross realized losses	(1)		(1)
Subtotal	—		3
Other	1		6
Total	$	106	$	(666)