Delaware | 13-2646102 | |||
(State or other jurisdiction of | (I.R.S. Employer | |||
incorporation or organization) | ||||
Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common stock, | L | New York Stock Exchange |
Yes X |
Yes X |
Large accelerated filer X |
Yes |
Page No. | |||||
No. | |||||
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8 | |||||
9 | |||||
37 | |||||
59 | |||||
59 | |||||
59 | |||||
59 | |||||
59 | |||||
59 | |||||
60 |
June 30, 2019 | December 31, 2018 | |||||||
(Dollar amounts in millions, except per share data) | ||||||||
Assets: | ||||||||
Investments: | ||||||||
Fixed maturities, amortized cost of $38,045 and $ 38,234 | $ | 41,663 | $ | 39,699 | ||||
Equity securities, cost of $ 1,385 and $ 1,479 | 1,367 | 1,293 | ||||||
Limited partnership investments | 2,036 | 2,424 | ||||||
Other invested assets, primarily mortgage loans | 985 | 901 | ||||||
Short term investments | 4,689 | 3,869 | ||||||
Total investments | 50,740 | 48,186 | ||||||
Cash | 440 | 405 | ||||||
Receivables | 8,144 | 7,960 | ||||||
Property, plant and equipment | 15,513 | 15,511 | ||||||
Goodwill | 768 | 665 | ||||||
Deferred non-insurance warranty acquisition expenses | 2,678 | 2,513 | ||||||
Deferred acquisition costs of insurance subsidiaries | 681 | 633 | ||||||
Other assets | 3,313 | 2,443 | ||||||
Total assets | $ | 82,277 | $ | 78,316 | ||||
Liabilities and Equity: | ||||||||
Insurance reserves: | ||||||||
Claim and claim adjustment expense | $ | 21,729 | $ | 21,984 | ||||
Future policy benefits | 11,537 | 10,597 | ||||||
Unearned premiums | 4,648 | 4,183 | ||||||
Total insurance reserves | 37,914 | 36,764 | ||||||
Payable to brokers | 576 | 42 | ||||||
Short term debt | 87 | 17 | ||||||
Long term debt | 11,456 | 11,359 | ||||||
Deferred income taxes | 1,227 | 841 | ||||||
Deferred non-insurance warranty revenue | 3,595 | 3,402 | ||||||
Other liabilities | 5,028 | 4,505 | ||||||
Total liabilities | 59,883 | 56,930 | ||||||
Commitments and contingent liabilities | ||||||||
Preferred stock, $ 0.10 par value: | ||||||||
Authorized – 100,000,000 shares | ||||||||
Common stock, $ 0.01 par value: | ||||||||
Authorized – 1,800,000,000 shares | ||||||||
Issued – 312,528,502 and312,169,189 shares | 3 | 3 | ||||||
Additional paid-in capital | 3,612 | 3,627 | ||||||
Retained earnings | 16,374 | 15,773 | ||||||
Accumulated other comprehensive income (loss) | 3 | (880 | ) | |||||
19,992 | 18,523 | |||||||
Less treasury stock, at cost ( 9,930,431 and100,000 shares) | (478 | ) | (5 | ) | ||||
Total shareholders’ equity | 19,514 | 18,518 | ||||||
Noncontrolling interests | 2,880 | 2,868 | ||||||
Total equity | 22,394 | 21,386 | ||||||
Total liabilities and equity | $ | 82,277 | $ | 78,316 |
September 30, | December 31, | |||||||
2019 | 2018 | |||||||
(Dollar amounts in millions, except per share data) | ||||||||
Assets: | ||||||||
Investments: | ||||||||
Fixed maturities, amortized cost of $38,287 and $38,234 | $ 42,489 | $ 39,699 | ||||||
Equity securities, cost of $1,315 and $1,479 | 1,317 | 1,293 | ||||||
Limited partnership investments | 2,012 | 2,424 | ||||||
Other invested assets, primarily mortgage loans | 995 | 901 | ||||||
Short term investments | 4,574 | 3,869 | ||||||
Total investments | 51,387 | 48,186 | ||||||
Cash | 442 | 405 | ||||||
Receivables | 7,622 | 7,960 | ||||||
Property, plant and equipment | 15,561 | 15,511 | ||||||
Goodwill | 772 | 665 | ||||||
Deferred non-insurance warranty acquisition expenses | 2,772 | 2,513 | ||||||
Deferred acquisition costs of insurance subsidiaries | 668 | 633 | ||||||
Other assets | 3,275 | 2,443 | ||||||
Total assets | $ 82,499 | $ 78,316 | ||||||
Liabilities and Equity: | ||||||||
Insurance reserves: | ||||||||
Claim and claim adjustment expense | $ 21,596 | $ 21,984 | ||||||
Future policy benefits | 12,305 | 10,597 | ||||||
Unearned premiums | 4,608 | 4,183 | ||||||
Total insurance reserves | 38,509 | 36,764 | ||||||
Payable to brokers | 242 | 42 | ||||||
Short term debt | 87 | 17 | ||||||
Long term debt | 11,395 | 11,359 | ||||||
Deferred income taxes | 1,141 | 841 | ||||||
Deferred non-insurance warranty revenue | 3,707 | 3,402 | ||||||
Other liabilities | 5,160 | 4,505 | ||||||
Total liabilities | 60,241 | 56,930 | ||||||
Commitments and contingent liabilities | ||||||||
Preferred stock, $0.10 par value: | ||||||||
Authorized – 100,000,000 shares | ||||||||
Common stock, $0.01 par value: | ||||||||
Authorized – 1,800,000,000 shares | ||||||||
Issued – 312,550,764 and 312,169,189 shares | 3 | 3 | ||||||
Additional paid-in capital | 3,620 | 3,627 | ||||||
Retained earnings | 16,427 | 15,773 | ||||||
Accumulated other comprehensive income (loss) | 17 | (880 | ) | |||||
20,067 | 18,523 | |||||||
Less treasury stock, at cost (13,324,637 and 100,000 shares) | (647 | ) | (5 | ) | ||||
Total shareholders’ equity | 19,420 | 18,518 | ||||||
Noncontrolling interests | 2,838 | 2,868 | ||||||
Total equity | 22,258 | 21,386 | ||||||
Total liabilities and equity | $ 82,499 | $ 78,316 | ||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(In millions, except per share data) | ||||||||||||||||
Revenues: | ||||||||||||||||
Insurance premiums | $ | 1,824 | $ | 1,815 | $ | 3,627 | $ | 3,600 | ||||||||
Net investment income | 551 | 551 | 1,208 | 1,057 | ||||||||||||
Investment gains (losses): | ||||||||||||||||
Other-than-temporary impairment losses | (6 | ) | (20 | ) | (6 | ) | ||||||||||
Other net investment gains (losses) | 8 | (3 | ) | 53 | 12 | |||||||||||
Total investment gains (losses) | 2 | (3 | ) | 33 | 6 | |||||||||||
Non-insurance warranty revenue | 285 | 248 | 566 | 486 | ||||||||||||
Operating revenues and other | 961 | 979 | 1,946 | 2,022 | ||||||||||||
Total | 3,623 | 3,590 | 7,380 | 7,171 | ||||||||||||
Expenses: | ||||||||||||||||
Insurance claims and policyholders’ benefits | 1,352 | 1,327 | 2,709 | 2,666 | ||||||||||||
Amortization of deferred acquisition costs | 338 | 359 | 680 | 655 | ||||||||||||
Non-insurance warranty expense | 263 | 225 | 523 | 441 | ||||||||||||
Operating expenses and other | 1,231 | 1,229 | 2,380 | 2,413 | ||||||||||||
Interest | 164 | 143 | 305 | 284 | ||||||||||||
Total | 3,348 | 3,283 | 6,597 | 6,459 | ||||||||||||
Income before income tax | 275 | 307 | 783 | 712 | ||||||||||||
Income tax expense | (50 | ) | (59 | ) | (162 | ) | (84 | ) | ||||||||
Net income | 225 | 248 | 621 | 628 | ||||||||||||
Amounts attributable to noncontrolling interests | 24 | (18 | ) | 22 | (105 | ) | ||||||||||
Net income attributable to Loews Corporation | $ | 249 | $ | 230 | $ | 643 | $ | 523 | ||||||||
Basic net income per share | $ | 0.82 | $ | 0.72 | $ | 2.10 | $ | 1.62 | ||||||||
Diluted net income per share | $ | 0.82 | $ | 0.72 | $ | 2.09 | $ | 1.61 | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Shares of common stock | 303.84 | 318.87 | 306.82 | 323.30 | ||||||||||||
Dilutive potential shares of common stock | 0.70 | 0.91 | 0.62 | 0.93 | ||||||||||||
Total weighted average shares outstanding assuming dilution | 304.54 | 319.78 | 307.44 | 324.23 |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(In millions, except per share data) | ||||||||||||||||
Revenues: | ||||||||||||||||
Insurance premiums | $ | 1,890 | $ | 1,853 | $ | 5,517 | $ | 5,453 | ||||||||
Net investment income | 525 | 494 | 1,733 | 1,551 | ||||||||||||
Investment gains (losses): | ||||||||||||||||
Other-than-temporary impairment losses | (14 | ) | (3 | ) | (34 | ) | (9 | ) | ||||||||
Other net investment gains | 22 | 18 | 75 | 30 | ||||||||||||
Total investment gains | 8 | 15 | 41 | 21 | ||||||||||||
Non-insurance warranty revenue | 292 | 258 | 858 | 744 | ||||||||||||
Operating revenues and other | 960 | 988 | 2,906 | 3,010 | ||||||||||||
Total | 3,675 | 3,608 | 11,055 | 10,779 | ||||||||||||
Expenses: | ||||||||||||||||
Insurance claims and policyholders’ benefits | 1,614 | 1,312 | 4,323 | 3,978 | ||||||||||||
Amortization of deferred acquisition costs | 345 | 337 | 1,025 | 992 | ||||||||||||
Non-insurance warranty expense | 278 | 235 | 801 | 676 | ||||||||||||
Operating expenses and other | 1,234 | 1,224 | 3,614 | 3,637 | ||||||||||||
Interest | 144 | 146 | 449 | 430 | ||||||||||||
Total | 3,615 | 3,254 | 10,212 | 9,713 | ||||||||||||
Income before income tax | 60 | 354 | 843 | 1,066 | ||||||||||||
Income tax expense | (21 | ) | (65 | ) | (183 | ) | (149 | ) | ||||||||
Net income | 39 | 289 | 660 | 917 | ||||||||||||
Amounts attributable to noncontrolling interests | 33 | (11 | ) | 55 | (116 | ) | ||||||||||
Net income attributable to Loews Corporation | $ | 72 | $ | 278 | $ | 715 | $ | 801 | ||||||||
Basic net income per share | $ | 0.24 | $ | 0.88 | $ | 2.34 | $ | 2.50 | ||||||||
Diluted net income per share | $ | 0.24 | $ | 0.88 | $ | 2.34 | $ | 2.49 | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Shares of common stock | 301.65 | 315.90 | 305.08 | 320.81 | ||||||||||||
Dilutive potential shares of common stock | 0.70 | 0.91 | 0.65 | 0.92 | ||||||||||||
Total weighted average shares outstanding assuming dilution | 302.35 | 316.81 | 305.73 | 321.73 | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(In millions) | ||||||||||||||||
Net income | $ | 39 | $ | 289 | $ | 660 | $ | 917 | ||||||||
Other comprehensive income (loss), after tax | ||||||||||||||||
Changes in: | ||||||||||||||||
Net unrealized gains (losses) on investments with other- | (1 | ) | 4 | (11 | ) | |||||||||||
Net other unrealized gains (losses) on investments | 41 | (158 | ) | 1,003 | (746 | ) | ||||||||||
Total unrealized gains (losses) on investments | 41 | (159 | ) | 1,007 | (757 | ) | ||||||||||
Unrealized gains (losses) on cash flow hedges | (4 | ) | (16 | ) | 14 | |||||||||||
Pension liability | 10 | 8 | 25 | 27 | ||||||||||||
Foreign currency translation | (31 | ) | (11 | ) | (41 | ) | ||||||||||
Other comprehensive income (loss) | 16 | (151 | ) | 1,005 | (757 | ) | ||||||||||
Comprehensive income | 55 | 138 | 1,665 | 160 | ||||||||||||
Amounts attributable to noncontrolling interests | 31 | 7 | (53 | ) | (34 | ) | ||||||||||
Total comprehensive income attributable to Loews Corporation | $ | 86 | $ | 145 | $ | $ | 126 | |||||||||
Loews Corporation Shareholders | ||||||||||||||||||||||||||||
Accumulated | Common | |||||||||||||||||||||||||||
Additional | Other | Stock | ||||||||||||||||||||||||||
Common | Paid-in | Retained | Comprehensive | Held in | Noncontrolling | |||||||||||||||||||||||
Total | Stock | Capital | Earnings | Income (Loss) | Treasury | Interests | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Balance, July 1, 2018 | $ | 21,858 | $ | 3 | $ | 3,809 | $ | 16,532 | $ | (625 | ) | $ | (808 | ) | $ | 2,947 | ||||||||||||
Net income | 289 | 278 | 11 | |||||||||||||||||||||||||
Other comprehensive loss | (151 | ) | (133 | ) | (18 | ) | ||||||||||||||||||||||
Dividends paid ($0.0625 per share) | (30 | ) | (20 | ) | (10 | ) | ||||||||||||||||||||||
Purchases of Loews treasury stock | (88 | ) | (88 | ) | ||||||||||||||||||||||||
Stock-based compensation | 11 | 9 | 2 | |||||||||||||||||||||||||
Other | (3 | ) | (5 | ) | 2 | |||||||||||||||||||||||
Balance, September 30, 2018 | $ | 21,886 | $ | 3 | $ | 3,813 | $ | 16,790 | $ | (758 | ) | $ | (896 | ) | $ | 2,934 | ||||||||||||
Balance, July 1, 2019 | $ | 22,394 | $ | 3 | $ | 3,612 | $ | 16,374 | $ | 3 | $ | (478 | ) | $ | 2,880 | |||||||||||||
Net income | 39 | 72 | (33 | ) | ||||||||||||||||||||||||
Other comprehensive income | 16 | 14 | 2 | |||||||||||||||||||||||||
Dividends paid ($0.0625 per share) | (29 | ) | (19 | ) | (10 | ) | ||||||||||||||||||||||
Purchases of Loews treasury stock | (169 | ) | (169 | ) | ||||||||||||||||||||||||
Purchases of subsidiary stock from noncontrolling interests | (2 | ) | (2 | ) | ||||||||||||||||||||||||
Stock-based compensation | 9 | 8 | 1 | |||||||||||||||||||||||||
Balance, September 30, 2019 | $ | 22,258 | $ | 3 | $ | 3,620 | $ | 16,427 | $ | 17 | $ | (647 | ) | $ | 2,838 | |||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(In millions) | ||||||||||||||||
Net income | $ | 225 | $ | 248 | $ | 621 | $ | 628 | ||||||||
Other comprehensive income (loss), after tax | ||||||||||||||||
Changes in: | ||||||||||||||||
Net unrealized gains (losses) on investments with other-than-temporary impairments | (1 | ) | 4 | (10 | ) | |||||||||||
Net other unrealized gains (losses) on investments | 436 | (159 | ) | 962 | (588 | ) | ||||||||||
Total unrealized gains (losses) on investments | 436 | (160 | ) | 966 | (598 | ) | ||||||||||
Unrealized gains (losses) on cash flow hedges | (6 | ) | 4 | (12 | ) | 14 | ||||||||||
Pension liability | 7 | 9 | 15 | 19 | ||||||||||||
Foreign currency translation | 3 | (52 | ) | 20 | (41 | ) | ||||||||||
Other comprehensive income (loss) | 440 | (199 | ) | 989 | (606 | ) | ||||||||||
Comprehensive income | 665 | 49 | 1,610 | 22 | ||||||||||||
Amounts attributable to noncontrolling interests | (23 | ) | 2 | (84 | ) | (41 | ) | |||||||||
Total comprehensive income (loss) attributable to Loews Corporation | $ | 642 | $ | 51 | $ | 1,526 | $ | (19 | ) |
Loews Corporation Shareholders | ||||||||||||||||||||||||||||
Accumulated | Common | |||||||||||||||||||||||||||
Additional | Other | Stock | ||||||||||||||||||||||||||
Common | Paid-in | Retained | Comprehensive | Held in | Noncontrolling | |||||||||||||||||||||||
Total | Stock | Capital | Earnings | Income (Loss) | Treasury | Interests | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Balance, January 1, 2018, as reported | $ | 24,566 | $ | 3 | $ | 3,151 | $ | 16,096 | $ | (26 | ) | $ | (20 | ) | $ | 5,362 | ||||||||||||
Cumulative effect adjustments from changes in accounting standards | (91 | ) | (43 | ) | (28 | ) | (20 | ) | ||||||||||||||||||||
Balance, January 1, 2018, as adjusted | 24,475 | 3 | 3,151 | 16,053 | (54 | ) | (20 | ) | 5,342 | |||||||||||||||||||
Net income | 917 | 801 | 116 | |||||||||||||||||||||||||
Other comprehensive loss | (757 | ) | (675 | ) | (82 | ) | ||||||||||||||||||||||
Dividends paid ($0.1875 per share) | (170 | ) | (60 | ) | (110 | ) | ||||||||||||||||||||||
Purchase of Boardwalk Pipeline s common units | (1,718 | ) | 658 | (29 | ) | (2,347 | ) | |||||||||||||||||||||
Purchases of Loews treasury stock | (876 | ) | (876 | ) | ||||||||||||||||||||||||
Stock-based compensation | 19 | 10 | 9 | |||||||||||||||||||||||||
Other | (4 | ) | (6 | ) | (4 | ) | 6 | |||||||||||||||||||||
Balance, September 30, 2018 | $ | 21,886 | $ | 3 | $ | 3,813 | $ | 16,790 | $ | (758 | ) | $ | (896 | ) | $ | 2,934 | ||||||||||||
Balance, January 1, 2019 | $ | 21,386 | $ | 3 | $ | 3,627 | $ | 15,773 | $ | (880 | ) | $ | (5 | ) | $ | 2,868 | ||||||||||||
Net income | 660 | 715 | (55 | ) | ||||||||||||||||||||||||
Other comprehensive income | 1,005 | 897 | 108 | |||||||||||||||||||||||||
Dividends paid ($0.1875 per share) | (145 | ) | (57 | ) | (88 | ) | ||||||||||||||||||||||
Purchases of Loews treasury stock | (642 | ) | (642 | ) | ||||||||||||||||||||||||
Purchases of subsidiary stock from noncontrolling interests | (18 | ) | (18 | ) | ||||||||||||||||||||||||
Stock-based compensation | 17 | (5 | ) | 22 | ||||||||||||||||||||||||
Other | (5 | ) | (2 | ) | (4 | ) | 1 | |||||||||||||||||||||
Balance, September 30, 2019 | $ | 22,258 | $ | 3 | $ | 3,620 | $ | 16,427 | $ | 17 | $ | (647 | ) | $ | 2,838 | |||||||||||||
Loews Corporation Shareholders | |||||||||||||||||||||||||||||
Accumulated | Common | ||||||||||||||||||||||||||||
Additional | Other | Stock | |||||||||||||||||||||||||||
Common | Paid-in | Retained | Comprehensive | Held in | Noncontrolling | ||||||||||||||||||||||||
Total | Stock | Capital | Earnings | Income (Loss) | Treasury | Interests | |||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Balance, April 1, 2018 | $ | 23,848 | $ | 3 | $ | 3,142 | $ | 16,321 | $ | (417 | ) | $ | (517 | ) | $ | 5,316 | |||||||||||||
Net income | 248 | 230 | 18 | ||||||||||||||||||||||||||
Other comprehensive loss | (199 | ) | (179 | ) | (20 | ) | |||||||||||||||||||||||
Dividends paid ($0.0625 per share) | (42 | ) | (20 | ) | (22 | ) | |||||||||||||||||||||||
Purchase of Boardwalk Pipeline common units | (1,715 | ) | 661 | (29 | ) | (2,347 | ) | ||||||||||||||||||||||
Purchases of Loews treasury stock | (291 | ) | (291 | ) | |||||||||||||||||||||||||
Stock-based compensation | 8 | 8 | |||||||||||||||||||||||||||
Other | 1 | (2 | ) | 1 | 2 | ||||||||||||||||||||||||
Balance, June 30, 2018 | $ | 21,858 | $ | 3 | $ | 3,809 | $ | 16,532 | $ | (625 | ) | $ | (808 | ) | $ | 2,947 | |||||||||||||
Balance, April 1, 2019 | $ | 21,902 | $ | 3 | $ | 3,607 | $ | 16,144 | $ | (390 | ) | $ | (327 | ) | $ | 2,865 | |||||||||||||
Net income | 225 | 249 | (24 | ) | |||||||||||||||||||||||||
Other comprehensive income | 440 | 393 | 47 | ||||||||||||||||||||||||||
Dividends paid ($0.0625 per share) | (29 | ) | (19 | ) | (10 | ) | |||||||||||||||||||||||
Purchases of Loews treasury stock | (151 | ) | (151 | ) | |||||||||||||||||||||||||
Purchases of subsidiary stock from noncontrolling interests | (2 | ) | (2 | ) | |||||||||||||||||||||||||
Stock-based compensation | 7 | 6 | 1 | ||||||||||||||||||||||||||
Other | 2 | (1 | ) | 3 | |||||||||||||||||||||||||
Balance, June 30, 2019 | $ | 22,394 | $ | 3 | $ | 3,612 | $ | 16,374 | $ | 3 | $ | (478 | ) | $ | 2,880 |
Loews Corporation Shareholders | |||||||||||||||||||||||||||||
Accumulated | Common | ||||||||||||||||||||||||||||
Additional | Other | Stock | |||||||||||||||||||||||||||
Common | Paid-in | Retained | Comprehensive | Held in | Noncontrolling | ||||||||||||||||||||||||
Total | Stock | Capital | Earnings | Income (Loss) | Treasury | Interests | |||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Balance, January 1, 2018, as reported | $ | 24,566 | $ | 3 | $ | 3,151 | $ | 16,096 | $ | (26 | ) | $ | (20 | ) | $ | 5,362 | |||||||||||||
Cumulative effect adjustments from changes in accounting standards | (91 | ) | (43 | ) | (28 | ) | (20 | ) | |||||||||||||||||||||
Balance, January 1, 2018, as adjusted | 24,475 | 3 | 3,151 | 16,053 | (54 | ) | (20 | ) | 5,342 | ||||||||||||||||||||
Net income | 628 | 523 | 105 | ||||||||||||||||||||||||||
Other comprehensive loss | (606 | ) | (542 | ) | (64 | ) | |||||||||||||||||||||||
Dividends paid ($0.125 per share) | (140 | ) | (40 | ) | (100 | ) | |||||||||||||||||||||||
Purchase of Boardwalk Pipeline common units | (1,715 | ) | 661 | (29 | ) | (2,347 | ) | ||||||||||||||||||||||
Purchases of Loews treasury stock | (788 | ) | (788 | ) | |||||||||||||||||||||||||
Stock-based compensation | 8 | 1 | 7 | ||||||||||||||||||||||||||
Other | (4 | ) | (4 | ) | (4 | ) | 4 | ||||||||||||||||||||||
Balance, June 30, 2018 | $ | 21,858 | $ | 3 | $ | 3,809 | $ | 16,532 | $ | (625 | ) | $ | (808 | ) | $ | 2,947 | |||||||||||||
Balance, January 1, 2019 | $ | 21,386 | $ | 3 | $ | 3,627 | $ | 15,773 | $ | (880 | ) | $ | (5 | ) | $ | 2,868 | |||||||||||||
Net income | 621 | 643 | (22 | ) | |||||||||||||||||||||||||
Other comprehensive income | 989 | 883 | 106 | ||||||||||||||||||||||||||
Dividends paid ($0.125 per share) | (116 | ) | (38 | ) | (78 | ) | |||||||||||||||||||||||
Purchases of Loews treasury stock | (473 | ) | (473 | ) | |||||||||||||||||||||||||
Purchases of subsidiary stock from noncontrolling interests | (16 | ) | (16 | ) | |||||||||||||||||||||||||
Stock-based compensation | 8 | (13 | ) | 21 | |||||||||||||||||||||||||
Other | (5 | ) | (2 | ) | (4 | ) | 1 | ||||||||||||||||||||||
Balance, June 30, 2019 | $ | 22,394 | $ | 3 | $ | 3,612 | $ | 16,374 | $ | 3 | $ | (478 | ) | $ | 2,880 |
Six Months Ended June 30 | 2019 | 2018 | ||||||
(In millions) | ||||||||
Operating Activities: | ||||||||
Net income | $ | 621 | $ | 628 | ||||
Adjustments to reconcile net income to net cash provided (used) by operating activities, net | 604 | 494 | ||||||
Changes in operating assets and liabilities, net: | ||||||||
Receivables | (79 | ) | (507 | ) | ||||
Deferred acquisition costs | (47 | ) | (43 | ) | ||||
Insurance reserves | 203 | 563 | ||||||
Other assets | (296 | ) | (151 | ) | ||||
Other liabilities | 73 | (115 | ) | |||||
Trading securities | (605 | ) | 1,282 | |||||
Net cash flow provided by operating activities | 474 | 2,151 | ||||||
Investing Activities: | ||||||||
Purchases of fixed maturities | (4,896 | ) | (5,608 | ) | ||||
Proceeds from sales of fixed maturities | 3,858 | 4,781 | ||||||
Proceeds from maturities of fixed maturities | 1,374 | 1,306 | ||||||
Purchases of limited partnership investments | (139 | ) | (73 | ) | ||||
Proceeds from sales of limited partnership investments | 559 | 94 | ||||||
Purchases of property, plant and equipment | (505 | ) | (480 | ) | ||||
Acquisitions | (256 | ) | (10 | ) | ||||
Dispositions | 136 | 2 | ||||||
Change in short term investments | 6 | (1,104 | ) | |||||
Other, net | (93 | ) | (145 | ) | ||||
Net cash flow provided by investing activities | 44 | (1,237 | ) | |||||
Financing Activities: | ||||||||
Dividends paid | (38 | ) | (40 | ) | ||||
Dividends paid to noncontrolling interests | (78 | ) | (100 | ) | ||||
Purchases of Loews treasury stock | (478 | ) | (799 | ) | ||||
Purchases of subsidiary stock from noncontrolling interests | (16 | ) | ||||||
Principal payments on debt | (1,394 | ) | (605 | ) | ||||
Issuance of debt | 1,534 | 533 | ||||||
Other, net | (15 | ) | 83 | |||||
Net cash flow used by financing activities | (485 | ) | (928 | ) | ||||
Effect of foreign exchange rate on cash | 2 | (5 | ) | |||||
Net change in cash | 35 | (19 | ) | |||||
Cash, beginning of period | 405 | 472 | ||||||
Cash, end of period | $ | 440 | $ | 453 |
Nine Months Ended September 30 | 2019 | 2018 | ||||||
(In millions) | ||||||||
Operating Activities: | ||||||||
Net income | $ | 660 | $ | 917 | ||||
Adjustments to reconcile net income to net cash provided (used) by operating activities, net | 747 | 1,121 | ||||||
Changes in operating assets and liabilities, net: | ||||||||
Receivables | 179 | 18 | ||||||
Deferred acquisition costs | (37 | ) | (24 | ) | ||||
Insurance reserves | 337 | 108 | ||||||
Other assets | (386 | ) | (169 | ) | ||||
Other liabilities | 315 | (75 | ) | |||||
Trading securities | (544 | ) | 1,499 | |||||
Net cash flow provided by operating activities | 1,271 | 3,395 | ||||||
Investing Activities: | ||||||||
Purchases of fixed maturities | (7,053 | ) | (8,244 | ) | ||||
Proceeds from sales of fixed maturities | 4,872 | 6,622 | ||||||
Proceeds from maturities of fixed maturities | 2,116 | 1,838 | ||||||
Purchases of limited partnership investments | (167 | ) | (381 | ) | ||||
Proceeds from sales of limited partnership investments | 680 | 382 | ||||||
Purchases of property, plant and equipment | (743 | ) | (731 | ) | ||||
Acquisitions | (257 | ) | (14 | ) | ||||
Dispositions | 137 | 110 | ||||||
Change in short term investments | 26 | (126 | ) | |||||
Other, net | (95 | ) | (173 | ) | ||||
Net cash flow used by investing activities | (484 | ) | (717 | ) | ||||
Financing Activities: | ||||||||
Dividends paid | (57 | ) | (60 | ) | ||||
Dividends paid to noncontrolling interests | (88 | ) | (110 | ) | ||||
Purchases of Loews treasury stock | (643 | ) | (889 | ) | ||||
Purchases of subsidiary stock from noncontrolling interests | (18 | ) | ||||||
Purchase of Boardwalk Pipeline s common units | (1,504 | ) | ||||||
Principal payments on debt | (1,796 | ) | (780 | ) | ||||
Issuance of debt | 1,870 | 693 | ||||||
Other, net | (15 | ) | 75 | |||||
Net cash flow used by financing activities | (747 | ) | (2,575 | ) | ||||
Effect of foreign exchange rate on cash | (3 | ) | (4 | ) | ||||
Net change in cash | 37 | 99 | ||||||
Cash, beginning of period | 405 | 472 | ||||||
Cash, end of period | $ | 442 | $ | 571 | ||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(In millions) | ||||||||||||||||
Fixed maturity securities | $ | 452 | $ | 449 | $ | 1,362 | $ | 1,339 | ||||||||
Limited partnership investments | 16 | 34 | 140 | 142 | ||||||||||||
Short term investments | 13 | 10 | 42 | 30 | ||||||||||||
Equity securities | 16 | 10 | 62 | 32 | ||||||||||||
Income ( from trading portfolio (a)loss ) | 34 | (7 | ) | 144 | 13 | |||||||||||
Other | 13 | 12 | 39 | 40 | ||||||||||||
Total investment income | 544 | 508 | 1,789 | 1,596 | ||||||||||||
Investment expenses | (19 | ) | (14 | ) | (56 | ) | (45 | ) | ||||||||
Net investment income | $ | 525 | $ | 494 | $ | 1,733 | $ | 1,551 | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(In millions) | ||||||||||||||||
Fixed maturity securities | $ | 455 | $ | 444 | $ | 910 | $ | 890 | ||||||||
Limited partnership investments | 43 | 60 | 124 | 108 | ||||||||||||
Short term investments | 14 | 11 | 29 | 20 | ||||||||||||
Equity securities | 16 | 12 | 46 | 22 | ||||||||||||
Income from trading portfolio (a) | 29 | 23 | 110 | 20 | ||||||||||||
Other | 12 | 17 | 26 | 28 | ||||||||||||
Total investment income | 569 | 567 | 1,245 | 1,088 | ||||||||||||
Investment expenses | (18 | ) | (16 | ) | (37 | ) | (31 | ) | ||||||||
Net investment income | $ | 551 | $ | 551 | $ | 1,208 | $ | 1,057 |
(a) | Net unrealized gains (losses) related to changes in fair value on securities still held were |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(In millions) | ||||||||||||||||
Fixed maturity securities | $ | 3 | $ | 10 | $ | (6 | ) | $ | 32 | |||||||
Equity securities | 7 | 2 | 60 | (23 | ) | |||||||||||
Derivative instruments | (2 | ) | 1 | (13 | ) | 10 | ||||||||||
Short term investments and other | 2 | 2 | ||||||||||||||
Investment gains (a) | $ | 8 | $ | 15 | $ | 41 | $ | 21 | ||||||||
(a) | Gross investment gains on available-for-sale securities were $34 and $42 for the three months ended September 30, 2019 and 2018 and $98 and $148 for the nine months ended September 30, 2019 and 2018. Gross investment losses onavailable-for-sale securities were $31 and $32 for the three months ended September 30, 2019 and 2018 and $104 and $116 for the nine months ended September 30, 2019 and 2018.During the three and nine months ended September 30, 2019, $7 and $60 of Net investment gains were recognized due to the change in fair value of non-redeemable preferred stock still held as of September 30, 2019. During the three and nine months ended September 30, 2018, $2 of Net investment gains and $23 of Net investment losses were recognized due to the change in fair value ofnon-redeemable preferred stock still held as of September 30, 2018. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(In millions) | ||||||||||||||||
Fixed maturity securities available-for-sale: | ||||||||||||||||
$ | 12 | $ | 1 | $ | 24 | $ | 6 | |||||||||
2 | 2 | 10 | 3 | |||||||||||||
Net OTTI losses recognized in earnings | $ | 14 | $ | 3 | $ | 34 | $ | 9 | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(In millions) | ||||||||||||||||
Fixed maturity securities | $ | (3 | ) | $ | 4 | $ | (9 | ) | $ | 22 | ||||||
Equity securities | 11 | (10 | ) | 53 | (25 | ) | ||||||||||
Derivative instruments | (6 | ) | 4 | (11 | ) | 9 | ||||||||||
Short term investments and other | (1 | ) | ||||||||||||||
Investment gains (losses) (a) | $ | 2 | $ | (3 | ) | $ | 33 | $ | 6 |
September 30, 2019 | Cost or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | Unrealized OTTI Losses (Gains) | ||||||||||||||||
(In millions) | |||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||
$ | 19,806 | $ | 2,263 | $ | 42 | $ | 22,027 | ||||||||||||||
9,154 | 1,641 | 10,795 | |||||||||||||||||||
Residential mortgage-backed | 4,718 | 157 | 1 | 4,874 | $ | (23 | ) | ||||||||||||||
Commercial mortgage-backed | 2,066 | 117 | 3 | 2,180 | 1 | ||||||||||||||||
Other asset-backed | 1,884 | 46 | 4 | 1,926 | (3 | ) | |||||||||||||||
8,668 | 320 | 8 | 8,980 | (25 | ) | ||||||||||||||||
124 | 7 | 131 | |||||||||||||||||||
491 | 20 | 511 | |||||||||||||||||||
10 | 10 | ||||||||||||||||||||
Fixed maturities available-for-sale | 38,253 | 4,251 | 50 | 42,454 | (25 | ) | |||||||||||||||
Fixed maturities trading | 34 | 1 | 35 | ||||||||||||||||||
Total fixed maturity securities | $ | 38,287 | $ | 4,252 | $ | 50 | $ | 42,489 | $ | (25 | ) | ||||||||||
December 31, 2018 | |||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||
$ | 18,764 | $ | 791 | $ | 395 | $ | 19,160 | ||||||||||||||
9,681 | 1,076 | 9 | 10,748 | ||||||||||||||||||
Residential mortgage-backed | 4,815 | 68 | 57 | 4,826 | $ | (20 | ) | ||||||||||||||
Commercial mortgage-backed | 2,200 | 28 | 32 | 2,196 | |||||||||||||||||
Other asset-backed | 1,975 | 11 | 24 | 1,962 | |||||||||||||||||
8,990 | 107 | 113 | 8,984 | (20 | ) | ||||||||||||||||
156 | 3 | 159 | |||||||||||||||||||
480 | 5 | 4 | 481 | ||||||||||||||||||
10 | 10 | ||||||||||||||||||||
Fixed maturities available-for-sale | 38,081 | 1,982 | 521 | 39,542 | (20 | ) | |||||||||||||||
Fixed maturities trading | 153 | 4 | 157 | ||||||||||||||||||
Total fixed maturities | $ | 38,234 | $ | 1,986 | $ | 521 | $ | 39,699 | $ | (20 | ) | ||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(In millions) | ||||||||||||||||
Fixed maturity securities available-for-sale: | ||||||||||||||||
Corporate and other bonds | $ | 6 | $ | 12 | $ | 5 | ||||||||||
Asset-backed | 8 | 1 | ||||||||||||||
Net OTTI losses recognized in earnings | $ | 6 | $ | - | $ | 20 | $ | 6 |
June 30, 2019 | Cost or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | Unrealized OTTI Losses (Gains) | |||||||||||||||
(In millions) | ||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||
Corporate and other bonds | $ | 19,654 | $ | 1,880 | $ | 44 | $ | 21,490 | ||||||||||||
States, municipalities and political subdivisions | 9,196 | 1,507 | 10,703 | |||||||||||||||||
Asset-backed: | ||||||||||||||||||||
Residential mortgage-backed | 4,668 | 131 | 2 | 4,797 | $ | (24 | ) | |||||||||||||
Commercial mortgage-backed | 2,032 | 93 | 4 | 2,121 | ||||||||||||||||
Other asset-backed | 1,865 | 40 | 7 | 1,898 | (2 | ) | ||||||||||||||
Total asset-backed | 8,565 | 264 | 13 | 8,816 | (26 | ) | ||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 118 | 5 | 123 | |||||||||||||||||
Foreign government | 480 | 17 | 497 | |||||||||||||||||
Redeemable preferred stock | 10 | 10 | ||||||||||||||||||
Fixed maturities available-for-sale | 38,023 | 3,673 | 57 | 41,639 | (26 | ) | ||||||||||||||
Fixed maturities trading | 22 | 2 | 24 | |||||||||||||||||
Total fixed maturity securities | $ | 38,045 | $ | 3,675 | $ | 57 | $ | 41,663 | $ | (26 | ) |
December 31, 2018 | Cost or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | Unrealized OTTI Losses (Gains) | |||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||
Corporate and other bonds | $ | 18,764 | $ | 791 | $ | 395 | $ | 19,160 | ||||||||||||
States, municipalities and political subdivisions | 9,681 | 1,076 | 9 | 10,748 | ||||||||||||||||
Asset-backed: | ||||||||||||||||||||
Residential mortgage-backed | 4,815 | 68 | 57 | 4,826 | $ | (20 | ) | |||||||||||||
Commercial mortgage-backed | 2,200 | 28 | 32 | 2,196 | ||||||||||||||||
Other asset-backed | 1,975 | 11 | 24 | 1,962 | ||||||||||||||||
Total asset-backed | 8,990 | 107 | 113 | 8,984 | (20 | ) | ||||||||||||||
U.S. Treasury and obligations of government- sponsored enterprises | 156 | 3 | 159 | |||||||||||||||||
Foreign government | 480 | 5 | 4 | 481 | ||||||||||||||||
Redeemable preferred stock | 10 | 10 | ||||||||||||||||||
Fixed maturities available-for-sale | 38,081 | 1,982 | 521 | 39,542 | (20 | ) | ||||||||||||||
Fixed maturities trading | 153 | 4 | 157 | |||||||||||||||||
Total fixed maturities | $ | 38,234 | $ | 1,986 | $ | 521 | $ | 39,699 | $ | (20 | ) |
Less than 12 Months | 12 Months or Longer | Total | Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||||||||||||||||||||||
June 30, 2019 | Estimated Fair Value | Gross Unrealized Losses | Estimated Fair Value | Gross Unrealized Losses | Estimated Fair Value | Gross Unrealized Losses | |||||||||||||||||||||||||||||||||||||||||||
September 30, 2019 | Estimated Fair Value | Gross Unrealized Losses | Estimated Fair Value | Gross Unrealized Losses | Estimated Fair Value | Gross Unrealized Losses | |||||||||||||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||||||||||||||||||||||||||
Corporate and other bonds | $ | 776 | $ | 22 | $ | 498 | $ | 22 | $ | 1,274 | $ | 44 | $ | 890 | $ | 26 | $ | 200 | $ | 16 | $ | 1,090 | $ | 42 | |||||||||||||||||||||||||
States, municipalities and political subdivisions | 19 | 2 | 21 | 20 | 2 | 22 | |||||||||||||||||||||||||||||||||||||||||||
Asset-backed: | |||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed | 163 | 134 | 2 | 297 | 2 | 150 | 38 | 1 | 188 | 1 | |||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed | 58 | 2 | 69 | 2 | 127 | 4 | 83 | 2 | 26 | 1 | 109 | 3 | |||||||||||||||||||||||||||||||||||||
Other asset-backed | 386 | 5 | 77 | 2 | 463 | 7 | 416 | 3 | 6 | 1 | 422 | 4 | |||||||||||||||||||||||||||||||||||||
Total asset-backed | 607 | 7 | 280 | 6 | 887 | 13 | 649 | 5 | 70 | 3 | 719 | 8 | |||||||||||||||||||||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 4 | 4 | 14 | 4 | 18 | ||||||||||||||||||||||||||||||||||||||||||||
Foreign government | 3 | 11 | 14 | 17 | 2 | 19 | |||||||||||||||||||||||||||||||||||||||||||
Total fixed maturity securities | $ | 1,405 | $ | 29 | $ | 795 | $ | 28 | $ | 2,200 | $ | 57 | $ | 1,590 | $ | 31 | $ | 278 | $ | 19 | $ | 1,868 | $ | 50 | |||||||||||||||||||||||||
December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||||||||||||||||||||||||||
Corporate and other bonds | $ | 8,543 | $ | 340 | $ | 825 | $ | 55 | $ | 9,368 | $ | 395 | $ | 8,543 | $ | 340 | $ | 825 | $ | 55 | $ | 9,368 | $ | 395 | |||||||||||||||||||||||||
States, municipalities and political subdivisions | 517 | 8 | 5 | 1 | 522 | 9 | 517 | 8 | 5 | 1 | 522 | 9 | |||||||||||||||||||||||||||||||||||||
Asset-backed: | |||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed | 1,932 | 23 | 1,119 | 34 | 3,051 | 57 | 1,932 | 23 | 1,119 | 34 | 3,051 | 57 | |||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed | 728 | 10 | 397 | 22 | 1,125 | 32 | 728 | 10 | 397 | 22 | 1,125 | 32 | |||||||||||||||||||||||||||||||||||||
Other asset-backed | 834 | 21 | 125 | 3 | 959 | 24 | 834 | 21 | 125 | 3 | 959 | 24 | |||||||||||||||||||||||||||||||||||||
Total asset-backed | 3,494 | 54 | 1,641 | 59 | 5,135 | 113 | 3,494 | 54 | 1,641 | 59 | 5,135 | 113 | |||||||||||||||||||||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 21 | 19 | 40 | 21 | 19 | 40 | |||||||||||||||||||||||||||||||||||||||||||
Foreign government | 114 | 2 | 124 | 2 | 238 | 4 | 114 | 2 | 124 | 2 | 238 | 4 | |||||||||||||||||||||||||||||||||||||
Total fixed maturity securities | $ | 12,689 | $ | 404 | $ | 2,614 | $ | 117 | $ | 15,303 | $ | 521 | $ | 12,689 | $ | 404 | $ | 2,614 | $ | 117 | $ | 15,303 | $ | 521 | |||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(In millions) | ||||||||||||||||
Beginning balance of credit losses on fixed maturity securities | $ | 17 | $ | 25 | $ | 18 | $ | 27 | ||||||||
Reductions for securities sold during the period | (1 | ) | (4 | ) | (2 | ) | (6 | ) | ||||||||
Ending balance of credit losses on fixed maturity securities | $ | 16 | $ | 21 | $ | 16 | $ | 21 |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(In millions) | ||||||||||||||||
Beginning balance of credit losses on fixed maturity securities | $ | 16 | $ | 21 | $ | 18 | $ | 27 | ||||||||
Reductions for securities sold during the period | (2 | ) | (2 | ) | (8 | ) | ||||||||||
Ending balance of credit losses on fixed maturity securities | $ | 16 | $ | 19 | $ | 16 | $ | 19 | ||||||||
September 30, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||||
Cost or | Estimated | Cost or | Estimated | |||||||||||||||||||||||||||||
June 30, 2019 | December 31, 2018 | Amortized | Fair | Amortized | Fair | |||||||||||||||||||||||||||
Cost or Amortized Cost | Estimated Fair Value | Cost or Amortized Cost | Estimated Fair Value | Cost | Value | Cost | Value | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Due in one year or less | $ | 1,018 | $ | 1,032 | $ | 1,350 | $ | 1,359 | $ | 1,071 | $ | 1,091 | $ | 1,350 | $ | 1,359 | ||||||||||||||||
Due after one year through five years | 8,097 | 8,476 | 7,979 | 8,139 | 10,992 | 11,470 | 7,979 | 8,139 | ||||||||||||||||||||||||
Due after five years through ten years | 16,403 | 17,297 | 16,859 | 16,870 | 13,694 | 14,711 | 16,859 | 16,870 | ||||||||||||||||||||||||
Due after ten years | 12,505 | 14,834 | 11,893 | 13,174 | 12,496 | 15,182 | 11,893 | 13,174 | ||||||||||||||||||||||||
Total | $ | 38,023 | $ | 41,639 | $ | 38,081 | $ | 39,542 | $ | 38,253 | $ | 42,454 | $ | 38,081 | $ | 39,542 | ||||||||||||||||
June 30, 2019 | December 31, 2018 | |||||||||||||||||||||||
Contractual/ Notional | Estimated Fair Value | Contractual/ Notional | Estimated Fair Value | |||||||||||||||||||||
Amount | Asset | (Liability) | Amount | Asset | (Liability) | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
With hedge designation: | ||||||||||||||||||||||||
Interest rate swaps | $ | 540 | $ | (9 | ) | $ | 500 | $ | 11 | |||||||||||||||
Without hedge designation: | ||||||||||||||||||||||||
Equity markets: | ||||||||||||||||||||||||
Options – purchased | 303 | $ | 5 | 213 | 18 | |||||||||||||||||||
– written | 95 | (3 | ) | 239 | $ | (17 | ) | |||||||||||||||||
Futures – short | ||||||||||||||||||||||||
Commodity futures – long | 11 | 32 | ||||||||||||||||||||||
Embedded derivative on funds withheld liability | 172 | (8 | ) | 172 | 4 |
September 30, 2019 | December 31, 2018 | |||||||||||||||||||||||
Contractual/ | Contractual/ | |||||||||||||||||||||||
Notional | Estimated Fair Value | Notional | Estimated Fair Value | |||||||||||||||||||||
Amount | Asset | (Liability) | Amount | Asset | (Liability) | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
With hedge designation: | ||||||||||||||||||||||||
Interest rate swaps | $ | 715 | $ | (13 | ) | $ | 500 | $ | 11 | |||||||||||||||
Without hedge designation: | ||||||||||||||||||||||||
Equity markets: | ||||||||||||||||||||||||
Options – purchased | 150 | $ | 4 | 213 | 18 | |||||||||||||||||||
– written | 98 | (3 | ) | 239 | $ | (17 | ) | |||||||||||||||||
Commodity futures – long | 32 | |||||||||||||||||||||||
Embedded derivative on funds withheld liability | 170 | (9 | ) | 172 | 4 |
September 30, 2019 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(In millions) | ||||||||||||||||
Fixed maturity securities: | ||||||||||||||||
Corporate bonds and other | $ | 161 | $ | 22,090 | $ | 428 | $ | 22,679 | ||||||||
States, municipalities and political subdivisions | 10,795 | 10,795 | ||||||||||||||
Asset-backed | 8,784 | 196 | 8,980 | |||||||||||||
Fixed maturities available-for-sale | 161 | 41,669 | 624 | 42,454 | ||||||||||||
Fixed maturities trading | 31 | 4 | 35 | |||||||||||||
Total fixed maturities | $ | 161 | $ | 41,700 | $ | 628 | $ | 42,489 | ||||||||
Equity securities | $ | 641 | $ | 653 | $ | 23 | $ | 1,317 | ||||||||
Short term and other | 3,306 | 1,163 | 4,469 | |||||||||||||
Payable to brokers | (30 | ) | (14 | ) | (44 | ) | ||||||||||
December 31, 2018 | ||||||||||||||||
Fixed maturity securities: | ||||||||||||||||
Corporate bonds and other | $ | 196 | $ | 19,392 | $ | 222 | $ | 19,810 | ||||||||
States, municipalities and political subdivisions | 10,748 | 10,748 | ||||||||||||||
Asset-backed | 8,787 | 197 | 8,984 | |||||||||||||
Fixed maturities available-for-sale | 196 | 38,927 | 419 | 39,542 | ||||||||||||
Fixed maturities trading | 151 | 6 | 157 | |||||||||||||
Total fixed maturities | $ | 196 | $ | 39,078 | $ | 425 | $ | 39,699 | ||||||||
Equity securities | $ | 704 | $ | 570 | $ | 19 | $ | 1,293 | ||||||||
Short term and other | 2,647 | 1,111 | 3,758 | |||||||||||||
Receivables | 11 | 11 | ||||||||||||||
Payable to brokers | (23 | ) | (23 | ) |
Net Realized Investment Gains (Losses) and Net Change in Unrealized Investment Gains (Losses) | Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and | Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and | ||||||||||||||||||||||||||||||||||||||||||
2019 | Balance, July 1 | Included in Net Income (Loss) | Included OCI | Purchases | Sales | Settlements | Transfers into Level 3 | Transfers out of Level 3 | Balance, September 30 | Liabilities Held at September 30 | Liabilities Held at September 30 | |||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds and other | $ | 338 | $ | 14 | $ | 79 | $ | (3 | ) | $ | 428 | $ | 14 | |||||||||||||||||||||||||||||||
Asset-backed | 193 | 1 | 22 | (4 | ) | $ | (16 | ) | 196 | 2 | ||||||||||||||||||||||||||||||||||
Fixed maturities available-for-sale | 531 | $ | - | 15 | 101 | $ | - | (7 | ) | $ | - | (16 | ) | 624 | $ | - | 16 | |||||||||||||||||||||||||||
Fixed maturities trading | 4 | 4 | ||||||||||||||||||||||||||||||||||||||||||
Total fixed maturities | $ | 535 | $ | - | $ | 15 | $ | 101 | $ | - | $ | (7 | ) | $ | - | $ | (16 | ) | $ | 628 | $ | - | $ | 16 | ||||||||||||||||||||
Equity securities | $ | 23 | $ | 23 |
Net Realized Investment Gains (Losses) and Net Change in Unrealized Investment Gains (Losses) | Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and | Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and | ||||||||||||||||||||||||||||||||||||||||||
2018 | Balance, July 1 | Included in Net Income (Loss) | Included in OCI | Purchases | Sales | Settlements | Transfers into Level 3 | Transfers out of Level 3 | Balance, September 30 | Liabilities Held at September 30 | Liabilities Held at September 30 | |||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds and other | $ | 94 | $ | 67 | $ | (3 | ) | $ | 30 | $ | 188 | |||||||||||||||||||||||||||||||||
States, subdivisions | 1 | (1 | ) | - | ||||||||||||||||||||||||||||||||||||||||
Asset-backed | 273 | $ | (2 | ) | 55 | (25 | ) | 29 | $ | (32 | ) | 298 | $ | (2 | ) | $ | 1 | |||||||||||||||||||||||||||
Fixed maturities available-for-sale | 368 | (2 | ) | $ | - | 122 | $ | - | (29 | ) | 59 | (32 | ) | 486 | (2 | ) | 1 | |||||||||||||||||||||||||||
Fixed maturities | 7 | (1 | ) | 6 | ||||||||||||||||||||||||||||||||||||||||
Total fixed maturities | $ | 375 | $ | (2 | ) | $ | - | $ | 122 | $ | (1 | ) | $ | (29 | ) | $ | 59 | $ | (32 | ) | $ | 492 | $ | (2 | ) | $ | 1 | |||||||||||||||||
Equity securities | $ | 18 | $ | 1 | $ | 19 | $ | 1 |
Net Realized Investment Gains (Losses) and Net Change in Unrealized Investment Gains (Losses) | Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and | Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and | ||||||||||||||||||||||||||||||||||||||||||
2019 | Balance, January 1 | Included in Net Income (Loss) | Included in OCI | Purchases | Sales | Settlements | Transfers into Level 3 | Transfers out of Level 3 | Balance, September 30 | Liabilities Held at September 30 | Liabilities Held at September 30 | |||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity | ||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds and other | $ | 222 | $ | 34 | $ | 211 | $ | (7 | ) | $ | (32 | ) | $ | 428 | $ | 29 | ||||||||||||||||||||||||||||
Asset-backed | 197 | 8 | 42 | (12 | ) | $ | 45 | (84 | ) | 196 | 9 | |||||||||||||||||||||||||||||||||
Fixed maturities available-for-sale | 419 | $ | - | 42 | 253 | $ | - | (19 | ) | 45 | (116 | ) | 624 | $ | - | 38 | ||||||||||||||||||||||||||||
Fixed maturities trading | 6 | (2 | ) | 4 | (2 | ) | ||||||||||||||||||||||||||||||||||||||
Total fixed maturities | $ | 425 | $ | (2 | ) | $ | 42 | $ | 253 | $ | - | $ | (19 | ) | $ | 45 | $ | (116 | ) | $ | 628 | $ | (2 | ) | $ | 38 | ||||||||||||||||||
Equity securities | $ | 19 | $ | 2 | $ | 2 | $ | 23 | $ | 2 |
June 30, 2019 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(In millions) | ||||||||||||||||
Fixed maturity securities: | ||||||||||||||||
Corporate bonds and other | $ | 152 | $ | 21,630 | $ | 338 | $ | 22,120 | ||||||||
States, municipalities and political subdivisions | 10,703 | 10,703 | ||||||||||||||
Asset-backed | 8,623 | 193 | 8,816 | |||||||||||||
Fixed maturities available-for-sale | 152 | 40,956 | 531 | 41,639 | ||||||||||||
Fixed maturities trading | 20 | 4 | 24 | |||||||||||||
Total fixed maturities | $ | 152 | $ | 40,976 | $ | 535 | $ | 41,663 | ||||||||
Equity securities | $ | 715 | $ | 629 | $ | 23 | $ | 1,367 | ||||||||
Short term and other | 3,469 | 1,123 | 4,592 | |||||||||||||
Payable to brokers | (114 | ) | (9 | ) | (123 | ) | ||||||||||
December 31, 2018 | ||||||||||||||||
Fixed maturity securities: | ||||||||||||||||
Corporate bonds and other | $ | 196 | $ | 19,392 | $ | 222 | $ | 19,810 | ||||||||
States, municipalities and political subdivisions | 10,748 | 10,748 | ||||||||||||||
Asset-backed | 8,787 | 197 | 8,984 | |||||||||||||
Fixed maturities available-for-sale | 196 | 38,927 | 419 | 39,542 | ||||||||||||
Fixed maturities trading | 151 | 6 | 157 | |||||||||||||
Total fixed maturities | $ | 196 | $ | 39,078 | $ | 425 | $ | 39,699 | ||||||||
Equity securities | $ | 704 | $ | 570 | $ | 19 | $ | 1,293 | ||||||||
Short term and other | 2,647 | 1,111 | 3,758 | |||||||||||||
Receivables | 11 | 11 | ||||||||||||||
Payable to brokers | (23 | ) | (23 | ) |
Unrealized | ||||||||||||||||||||||||||||||||||||||||||||
Gains | ||||||||||||||||||||||||||||||||||||||||||||
Unrealized | (Losses) | |||||||||||||||||||||||||||||||||||||||||||
Gains | Recognized in | |||||||||||||||||||||||||||||||||||||||||||
(Losses) | Other | |||||||||||||||||||||||||||||||||||||||||||
Net Realized Investment Gains | Recognized in | Comprehensive | ||||||||||||||||||||||||||||||||||||||||||
(Losses) and Net Change | Net Income | Income (Loss) | ||||||||||||||||||||||||||||||||||||||||||
in Unrealized Investment | (Loss) on Level | on Level 3 | ||||||||||||||||||||||||||||||||||||||||||
Gains (Losses) | 3 Assets and | Assets and | ||||||||||||||||||||||||||||||||||||||||||
2018 | Balance, January 1 | Included in Net (Loss) | Included in OCI | Purchases | Sales | Settlements | Transfers into Level 3 | Transfers out of Level 3 | Balance, September 30 | Liabilities Held at September 30 | Liabilities Held at September 30 | |||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds and other | $ | 98 | $ | (1 | ) | $ | (1 | ) | $ | 69 | $ | (5 | ) | $ | (7 | ) | $ | 35 | $ | 188 | $ | (2 | ) | |||||||||||||||||||||
States, municipalities and political subdivisions | 1 | (1 | ) | - | ||||||||||||||||||||||||||||||||||||||||
Asset-backed | 335 | 5 | (6 | ) | 126 | (72 | ) | (37 | ) | 42 | $ | (95 | ) | 298 | $ | (2 | ) | (2 | ) | |||||||||||||||||||||||||
Fixed maturities available-for-sale | 434 | 4 | (7 | ) | 195 | (77 | ) | (45 | ) | 77 | (95 | ) | 486 | (2 | ) | (4 | ) | |||||||||||||||||||||||||||
Fixed maturities trading | 4 | 3 | (1 | ) | 6 | 2 | ||||||||||||||||||||||||||||||||||||||
Total fixed maturities | $ | 438 | $ | 7 | $ | (7 | ) | $ | 195 | $ | (78 | ) | $ | (45 | ) | $ | 77 | $ | (95 | ) | $ | 492 | $ | - | $ | (4 | ) | |||||||||||||||||
Equity securities | $ | 22 | $ | (2 | ) | $ | (1 | ) | $ | 19 | $ | (2 | ) |
Unrealized | |||||||||||||||||||||||||||||||||||||||||||||
Gains | |||||||||||||||||||||||||||||||||||||||||||||
(Losses) | |||||||||||||||||||||||||||||||||||||||||||||
Unrealized | Recognized in | ||||||||||||||||||||||||||||||||||||||||||||
Net Realized | Gains | Other | |||||||||||||||||||||||||||||||||||||||||||
Investment Gains | (Losses) | Comprehensive | |||||||||||||||||||||||||||||||||||||||||||
(Losses) and Net Change | Recognized in | Income (Loss) | |||||||||||||||||||||||||||||||||||||||||||
in Unrealized Investment | Net Income | on Level 3 | |||||||||||||||||||||||||||||||||||||||||||
Gains (Losses) | (Loss) on Level 3 | Assets and | |||||||||||||||||||||||||||||||||||||||||||
Included in | Transfers | Transfers | Assets and | Liabilities | |||||||||||||||||||||||||||||||||||||||||
Balance, | Net Income | Included in | into | out of | Balance, | Liabilities Held | Held at | ||||||||||||||||||||||||||||||||||||||
2019 | April 1 | (Loss) | OCI | Purchases | Sales | Settlements | Level 3 | Level 3 | June 30 | at June 30 | June 30 | ||||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds and other | $ | 253 | $ | 12 | $ | 76 | $ | (2 | ) | $ | (1 | ) | $ | 338 | $ | 10 | |||||||||||||||||||||||||||||
Asset-backed | 184 | 4 | (4 | ) | $ | 40 | (31 | ) | 193 | 5 | |||||||||||||||||||||||||||||||||||
Fixed maturities available-for-sale | 437 | $ | - | 16 | 76 | $ | - | (6 | ) | 40 | (32 | ) | 531 | $ | - | 15 | |||||||||||||||||||||||||||||
Fixed maturities trading | 5 | (1 | ) | 4 | (1 | ) | |||||||||||||||||||||||||||||||||||||||
Total fixed maturities | $ | 442 | $ | (1 | ) | $ | 16 | $ | 76 | $ | - | $ | (6 | ) | $ | 40 | $ | (32 | ) | $ | 535 | $ | (1 | ) | $ | 15 | |||||||||||||||||||
Equity securities | $ | 21 | $ | 2 | $ | 23 |
Unrealized | |||||||||||||||||||||||||||||||||||||||||
Gains | |||||||||||||||||||||||||||||||||||||||||
Net Realized | (Losses) | ||||||||||||||||||||||||||||||||||||||||
Investment Gains | Recognized in | ||||||||||||||||||||||||||||||||||||||||
(Losses) and Net Change | Net Income | ||||||||||||||||||||||||||||||||||||||||
in Unrealized Investment | (Loss) on Level | ||||||||||||||||||||||||||||||||||||||||
Gains (Losses) | 3 Assets and | ||||||||||||||||||||||||||||||||||||||||
Included in | Transfers | Transfers | Liabilities | ||||||||||||||||||||||||||||||||||||||
Balance, | Net Income | Included in | into | out of | Balance, | Held at | |||||||||||||||||||||||||||||||||||
2018 | April 1 | (Loss) | OCI | Purchases | Sales | Settlements | Level 3 | Level 3 | June 30 | June 30 | |||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||||||||||||||||||
Corporate bonds and other | $ | 100 | $ | (1 | ) | $ | 2 | $ | (5 | ) | $ | (2 | ) | $ | 94 | ||||||||||||||||||||||||||
States, municipalities and political subdivisions | 1 | 1 | |||||||||||||||||||||||||||||||||||||||
Asset-backed | 279 | (1 | ) | 41 | (6 | ) | $ | 13 | $ | (53 | ) | 273 | |||||||||||||||||||||||||||||
Fixed maturities available-for-sale | 380 | $ | - | (2 | ) | 43 | (5 | ) | (8 | ) | 13 | (53 | ) | 368 | $ | - | |||||||||||||||||||||||||
Fixed maturities trading | 7 | 7 | |||||||||||||||||||||||||||||||||||||||
Total fixed maturities | $ | 387 | $ | - | $ | (2 | ) | $ | 43 | $ | (5 | ) | $ | (8 | ) | $ | 13 | $ | (53 | ) | $ | 375 | $ | - | |||||||||||||||||
Equity securities | $ | 20 | $ | (1 | ) | $ | (1 | ) | $ | 18 | $ | (1 | ) |
Unrealized | |||||||||||||||||||||||||||||||||||||||||||||
Gains | |||||||||||||||||||||||||||||||||||||||||||||
(Losses) | |||||||||||||||||||||||||||||||||||||||||||||
Unrealized | Recognized in | ||||||||||||||||||||||||||||||||||||||||||||
Net Realized | Gains (Losses) | Other | |||||||||||||||||||||||||||||||||||||||||||
Investment Gains | Recognized in | Comprehensive | |||||||||||||||||||||||||||||||||||||||||||
(Losses) and Net Change | Net Income | Income (Loss) | |||||||||||||||||||||||||||||||||||||||||||
in Unrealized Investment | (Loss) on Level | on Level 3 | |||||||||||||||||||||||||||||||||||||||||||
Gains (Losses) | 3 Assets and | Assets and | |||||||||||||||||||||||||||||||||||||||||||
Included in | Transfers | Transfers | Liabilities | Liabilities | |||||||||||||||||||||||||||||||||||||||||
Balance, | Net Income | Included in | into | out of | Balance, | Held at | Held at | ||||||||||||||||||||||||||||||||||||||
2019 | January 1 | (Loss) | OCI | Purchases | Sales | Settlements | Level 3 | Level 3 | June 30 | June 30 | June 30 | ||||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds and other | $ | 222 | $ | 20 | $ | 132 | $ | (4 | ) | $ | (32 | ) | $ | 338 | $ | 17 | |||||||||||||||||||||||||||||
Asset-backed | 197 | 7 | 20 | (8 | ) | $ | 45 | (68 | ) | 193 | 8 | ||||||||||||||||||||||||||||||||||
Fixed maturities available-for-sale | 419 | $ | - | 27 | 152 | $ | - | (12 | ) | 45 | (100 | ) | 531 | $ | - | 25 | |||||||||||||||||||||||||||||
Fixed maturities trading | 6 | (2 | ) | 4 | (2 | ) | |||||||||||||||||||||||||||||||||||||||
Total fixed maturities | $ | 425 | $ | (2 | ) | $ | 27 | $ | 152 | $ | - | $ | (12 | ) | $ | 45 | $ | (100 | ) | $ | 535 | $ | (2 | ) | $ | 25 | |||||||||||||||||||
Equity securities | $ | 19 | $ | 2 | $ | 2 | $ | 23 | $ | 3 |
Unrealized | |||||||||||||||||||||||||||||||||||||||||
Gains | |||||||||||||||||||||||||||||||||||||||||
Net Realized | (Losses) | ||||||||||||||||||||||||||||||||||||||||
Investment Gains | Recognized in | ||||||||||||||||||||||||||||||||||||||||
(Losses) and Net Change | Net Income | ||||||||||||||||||||||||||||||||||||||||
in Unrealized Investment | (Loss) on Level | ||||||||||||||||||||||||||||||||||||||||
Gains (Losses) | 3 Assets and | ||||||||||||||||||||||||||||||||||||||||
Included in | Transfers | Transfers | Liabilities | ||||||||||||||||||||||||||||||||||||||
Balance, | Net Income | Included in | into | out of | Balance, | Held at | |||||||||||||||||||||||||||||||||||
2018 | January 1 | (Loss) | OCI | Purchases | Sales | Settlements | Level 3 | Level 3 | June 30 | June 30 | |||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||||||||||||||||||
Corporate bonds and other | $ | 98 | $ | (1 | ) | $ | (1 | ) | $ | 2 | $ | (5 | ) | $ | (4 | ) | $ | 5 | $ | 94 | |||||||||||||||||||||
States, municipalities and political subdivisions | 1 | 1 | |||||||||||||||||||||||||||||||||||||||
Asset-backed | 335 | 7 | (6 | ) | 71 | (72 | ) | (12 | ) | 13 | $ | (63 | ) | 273 | |||||||||||||||||||||||||||
Fixed maturities available-for-sale | 434 | 6 | (7 | ) | 73 | (77 | ) | (16 | ) | 18 | (63 | ) | 368 | $ | - | ||||||||||||||||||||||||||
Fixed maturities trading | 4 | 3 | 7 | 3 | |||||||||||||||||||||||||||||||||||||
Total fixed maturities | $ | 438 | $ | 9 | $ | (7 | ) | $ | 73 | $ | (77 | ) | $ | (16 | ) | $ | 18 | $ | (63 | ) | $ | 375 | $ | 3 | |||||||||||||||||
Equity securities | $ | 22 | $ | (3 | ) | $ | (1 | ) | $ | 18 | $ | (3 | ) |
Major Category of Assets and Liabilities | Consolidated Condensed Statements of Income Line Items | |
Fixed maturity securities available-for-sale | Investment gains (losses) | |
Fixed maturity securities trading | Net investment income | |
Equity securities | Investment gains (losses) and Net investment income | |
Other invested assets | Investment gains (losses) and Net investment income | |
Derivative financial instruments held in a trading portfolio | Net investment income | |
Derivative financial instruments, other | Investment gains (losses) and Operating revenues and other | |
Life settlement contracts | Operating revenues and other |
June 30, 2019 | Estimated Fair Value | Valuation Techniques | Unobservable Inputs | Range (Weighted Average) | ||||||||||||
(In millions) | ||||||||||||||||
Fixed maturity securities | $ | 381 | Discounted cash flow | Credit spread | 1% – 5% (2% | ) | ||||||||||
December 31, 2018 | ||||||||||||||||
Fixed maturity securities | $ | 228 | Discounted cash flow | Credit spread | 1 % – 12 % (3 % | ) |
September 30, 2019 | Estimated Fair Value | Valuation Techniques | Unobservable Inputs | Range (Weighted Average) | ||||||||||||
(In millions) | ||||||||||||||||
Fixed maturity securities | $ | 496 | Discounted cash flow | Credit spread | 1% – | |||||||||||
December 31, 2018 | ||||||||||||||||
Fixed maturity securities | $ | 228 | Discounted cash flow | Credit spread | 1% – 12% (3%) |
Carrying | Estimated Fair Value | Carrying | Estimated Fair Value | |||||||||||||||||||||||||||||||||||||
June 30, 2019 | Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||
September 30, 2019 | Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||
Other invested assets, primarily mortgage loans | $ | 923 | $ | 950 | | $ | 950 | |||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||
Short term debt | 85 | $ | 9 | 76 | 85 | |||||||||||||||||||||||||||||||||||
Long term debt | 11,383 | 10,638 | 595 | 11,233 | ||||||||||||||||||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||
Other invested assets, primarily mortgage loans | $ | 916 | $ | 936 | $ | 936 | $ | 839 | $ | 827 | $ | 827 | ||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||
Short term debt | 85 | $ | 8 | 76 | 84 | 15 | $ | 14 | 14 | |||||||||||||||||||||||||||||||
Long term debt | 11,443 | 10,909 | 555 | 11,464 | 11,345 | 10,111 | 653 | 10,764 | ||||||||||||||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||
Other invested assets, primarily mortgage | ||||||||||||||||||||||||||||||||||||||||
loans | $ | 839 | $ | 827 | $ | 827 | ||||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||
Short term debt | 15 | $ | 14 | 14 | ||||||||||||||||||||||||||||||||||||
Long term debt | 11,345 | 10,111 | 653 | 10,764 |
Six Months Ended June 30 | 2019 | 2018 | ||||||
(In millions) | ||||||||
Reserves, beginning of year: | ||||||||
Gross | $ | 21,984 | $ | 22,004 | ||||
Ceded | 4,019 | 3,934 | ||||||
Net reserves, beginning of year | 17,965 | 18,070 | ||||||
Net incurred claim and claim adjustment expenses: | ||||||||
Provision for insured events of current year | 2,615 | 2,552 | ||||||
Increase (decrease) in provision for insured events of prior years | (36 | ) | (112 | ) | ||||
Amortization of discount | 98 | 92 | ||||||
Total net incurred (a) | 2,677 | 2,532 | ||||||
Net payments attributable to: | ||||||||
Current year events | (315 | ) | (312 | ) | ||||
Prior year events | (2,519 | ) | (2,387 | ) | ||||
Total net payments | (2,834 | ) | (2,699 | ) | ||||
Foreign currency translation adjustment and other | 55 | (70 | ) | |||||
Net reserves, end of period | 17,863 | 17,833 | ||||||
Ceded reserves, end of period | 3,866 | 4,157 | ||||||
Gross reserves, end of period | $ | 21,729 | $ | 21,990 |
Nine Months Ended September 30 | 2019 | 2018 | ||||||
(In millions) | ||||||||
Reserves, beginning of year: | ||||||||
Gross | $ | 21,984 | $ | 22,004 | ||||
Ceded | 4,019 | 3,934 | ||||||
Net reserves, beginning of year | 17,965 | 18,070 | ||||||
Net incurred claim and claim adjustment expenses: | ||||||||
Provision for insured events of current year | 3,968 | 3,866 | ||||||
Increase (decrease) in provision for insured events of prior years | (65 | ) | (173 | ) | ||||
Amortization of discount | 143 | 136 | ||||||
Total net incurred (a) | 4,046 | 3,829 | ||||||
Net payments attributable to: | ||||||||
Current year events | (599 | ) | (658 | ) | ||||
Prior year events | (3,547 | ) | (3,415 | ) | ||||
Total net payments | (4,146 | ) | (4,073 | ) | ||||
Foreign currency translation adjustment and other | 29 | (80 | ) | |||||
Net reserves, end of period | 17,894 | 17,746 | ||||||
Ceded reserves, end of period | 3,702 | 3,858 | ||||||
Gross reserves, end of period | $ | 21,596 | $ | 21,604 | ||||
(a) | Total net incurred above does not agree to Insurance claims and policyholders’ benefits as reflected on the Consolidated Condensed Statements of Income due to amounts related to retroactive reinsurance deferred gain accounting, uncollectible reinsurance and loss deductible receivables and benefit expenses related to future policy benefits, which are not reflected in the table above. |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | September 30, | September 30, | |||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Medical professional liability | $ | 15 | $ | 3 | $ | 30 | $ | 23 | $ | 29 | $ | 15 | $ | 59 | $ | 38 | | |||||||||||||||
Other professional liability and management liability | (7 | ) | (34 | ) | (19 | ) | (68 | ) | (18 | ) | (45 | ) | (37 | ) | (113 | ) | ||||||||||||||||
Surety | (15 | ) | (15 | ) | (40 | ) | (30 | ) | (43 | ) | (20 | ) | (83 | ) | (50 | ) | ||||||||||||||||
Commercial auto | (3 | ) | (8 | ) | (1 | ) | (16 | ) | 1 | (24 | ) | |||||||||||||||||||||
General liability | 13 | 26 | (7 | ) | 18 | 43 | (5 | ) | 36 | 13 | ||||||||||||||||||||||
Workers’ compensation | (7 | ) | (6 | ) | (5 | ) | (12 | ) | 7 | (2 | ) | 2 | (14 | ) | ||||||||||||||||||
Other | (27 | ) | (33 | ) | 4 | (28 | ) | 14 | (6 | ) | 18 | (34 | ) | |||||||||||||||||||
Total pretax (favorable) unfavorable development | $ | (31 | ) | $ | (59 | ) | $ | (45 | ) | $ | (98 | ) | $ | 16 | $ | (62 | ) | $ | (29 | ) | $ | (160 | ) | |||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | September 30, | September 30, | |||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Additional amounts ceded under LPT: | ||||||||||||||||||||||||||||||||
Net A&EP adverse development before consideration of LPT | $ | 113 | $ | 113 | ||||||||||||||||||||||||||||
Provision for uncollectible third-party reinsurance on A&EP | (16 | ) | (16 | ) | ||||||||||||||||||||||||||||
Total additional amounts ceded under LPT | $ | - | $ | - | $ | - | 97 | $ | - | $ | - | $ | - | 97 | ||||||||||||||||||
Retroactive reinsurance benefit recognized | (14 | ) | (15 | ) | (36 | ) | (72 | ) | (7 | ) | (12 | ) | (43 | ) | (84 | ) | ||||||||||||||||
Pretax impact of deferred retroactive reinsurance | $ | (14 | ) | $ | (15 | ) | $ | (36 | ) | $ | 25 | $ | (7 | ) | $ | (12 | ) | $ | (43 | ) | $ | 13 | ||||||||||
Year Ended December 31 | ||||||||
(In millions) | ||||||||
2019 | $ | 75 | $ | 75 | ||||
2020 | 79 | 79 | ||||||
2021 | 79 | 79 | ||||||
2022 | 68 | 68 | ||||||
2023 | 57 | 57 | ||||||
Thereafter | 344 | 344 | ||||||
Total | $ | 702 | $ | 702 | ||||
Operating | Operating | |||||||
As of June 30, 2019 | Leases | |||||||
As of September 30, 2019 | Leases | |||||||
(In millions) | ||||||||
2019 (a) | $ | 53 | $ | 25 | ||||
2020 | 111 | 111 | ||||||
2021 | 108 | 109 | ||||||
2022 | 97 | 98 | ||||||
2023 | 86 | 87 | ||||||
Thereafter | 421 | 435 | ||||||
Total | 876 | 865 | ||||||
Less: discount | 174 | 171 | ||||||
Total lease liabilities | $ | 702 | $ | 694 | ||||
(a) | For the |
As of | |||||
Weighted average remaining lease term | 9.5 | Years | |||
Weighted average discount rate | 4.7 | % |
Total | ||||||||||||||||||||||||
Accumulated | ||||||||||||||||||||||||
OTTI | Unrealized | Foreign | Other | |||||||||||||||||||||
Gains | Gains (Losses) | Cash Flow | Pension | Currency | Comprehensive | |||||||||||||||||||
(Losses) | on Investments | Hedges | Liability | Translation | Income (Loss) | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Balance, April 1, 2018 | $ | 18 | $ | 386 | $ | 10 | $ | (753 | ) | $ | (78 | ) | $ | (417 | ) | |||||||||
Other comprehensive income (loss) before reclassifications, after tax of $1, $45, $0, $0 and $0 | (1 | ) | (156 | ) | 4 | (52 | ) | (205 | ) | |||||||||||||||
Reclassification of (gains) losses from accumulated other comprehensive income, after tax of $0, $1, $0, $(2) and $0 | (3 | ) | 9 | 6 | ||||||||||||||||||||
Other comprehensive income (loss) | (1 | ) | (159 | ) | 4 | 9 | (52 | ) | (199 | ) | ||||||||||||||
Amounts attributable to noncontrolling interests | 17 | (2 | ) | 5 | 20 | |||||||||||||||||||
Purchase of Boardwalk Pipelines common units | (1 | ) | (28 | ) | (29 | ) | ||||||||||||||||||
Balance, June 30, 2018 | $ | 17 | $ | 244 | $ | 13 | $ | (774 | ) | $ | (125 | ) | $ | (625 | ) | |||||||||
Balance, April 1, 2019 | $ | 18 | $ | 527 | $ | (1 | ) | $ | (786 | ) | $ | (148 | ) | $ | (390 | ) | ||||||||
Other comprehensive income (loss) before reclassifications, after tax of $ (1) 114) 2 , $0 and $0 | (1 | ) | 434 | (6 | ) | 3 | 430 | |||||||||||||||||
Reclassification of losses from accumulated other comprehensive income, after tax of $ 0 , $0 , $0 , $(3) and $0 | 1 | 2 | 7 | 10 | ||||||||||||||||||||
Other comprehensive income (loss) | — | 436 | (6 | ) | 7 | 3 | 440 | |||||||||||||||||
Amounts attributable to noncontrolling interests | (46 | ) | (1 | ) | (47 | ) | ||||||||||||||||||
Balance, June 30, 2019 | $ | 18 | $ | 917 | $ | (7 | ) | $ | (780 | ) | $ | (145 | ) | $ | 3 |
Total | ||||||||||||||||||||||||
Accumulated | ||||||||||||||||||||||||
OTTI | Unrealized | Foreign | Other | |||||||||||||||||||||
Gains | Gains (Losses) | Cash Flow | Pension | Currency | Comprehensive | |||||||||||||||||||
(Losses) | on Investments | Hedges | Liability | Translation | Income (Loss) | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Balance, July 1, 2018 | $ | 17 | $ | 244 | $ | 13 | $ | (774 | ) | $ | (125 | ) | $ | (625 | ) | |||||||||
Other comprehensive income (loss) before reclassifications, after tax of $0, $40, $(2), $0 and $0 | (1 | ) | (148 | ) | (149 | ) | ||||||||||||||||||
Reclassification of (gains) losses from accumulated other comprehensive income, after tax of $0, $2, $0, $(1) and $0 | (10 | ) | 8 | (2 | ) | |||||||||||||||||||
Other comprehensive income (loss) | (1 | ) | (158 | ) | - | 8 | - | (151 | ) | |||||||||||||||
Amounts attributable to noncontrolling interests | 17 | 1 | 18 | |||||||||||||||||||||
Balance, September 30, 2018 | $ | 16 | $ | 103 | $ | 13 | $ | (765 | ) | $ | (125 | ) | $ | (758 | ) | |||||||||
Balance, July 1, 2019 | $ | 18 | $ | 917 | $ | (7 | ) | $ | (780 | ) | $ | (145 | ) | $ | 3 | |||||||||
Other comprehensive income (loss) before reclassifications, after tax of $0, $(11), $1, $0 and $0 | 44 | (4 | ) | (31 | ) | 9 | ||||||||||||||||||
Reclassification of (gains) losses from accumulated other comprehensive income, after tax of $0, $0, $0, $(2) and $0 | (3 | ) | 10 | 7 | ||||||||||||||||||||
Other comprehensive income (loss) | - | 41 | (4 | ) | 10 | (31 | ) | 16 | ||||||||||||||||
Amounts attributable to noncontrolling interests | (5 | ) | 3 | (2 | ) | |||||||||||||||||||
Balance, September 30, 2019 | $ | 18 | $ | 953 | $ | (11 | ) | $ | (770 | ) | $ | (173 | ) | $ | 17 | |||||||||
Total | ||||||||||||||||||||||||
OTTI Gains | Unrealized Gains | Cash Flow | Pension | Foreign Currency | Accumulated Other Comprehensive | |||||||||||||||||||
(Losses) | on Investments | Hedges | Liability | Translation | Income (Loss) | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Balance, January 1, 2018, as reported | $ | 22 | $ | 673 | $ | - | $ | (633 | ) | $ | (88 | ) | $ | (26 | ) | |||||||||
Cumulative effect adjustment from changes in accounting standards, after tax of $0, $8, $0, $0 and $0 | 4 | 98 | (130 | ) | (28 | ) | ||||||||||||||||||
Balance, January 1, 2018, as adjusted | 26 | 771 | - | (763 | ) | (88 | ) | (54 | ) | |||||||||||||||
Other comprehensive income (loss) before reclassifications, after tax of $3, $190, $(4), $0 and $0 | (12 | ) | (718 | ) | 12 | (41 | ) | (759 | ) | |||||||||||||||
Reclassification of (gains) losses from accumulated other comprehensive income, after tax of $0 , $7, $0, $(6) and $0 | 1 | (28 | ) | 2 | 27 | 2 | ||||||||||||||||||
Other comprehensive income (loss) | (11 | ) | (746 | ) | 14 | 27 | (41 | ) | (757 | ) | ||||||||||||||
Amounts attributable to noncontrolling interests | 1 | 78 | (1 | ) | 4 | 82 | ||||||||||||||||||
Purchase of Boardwalk Pipelines common units | (1 | ) | (28 | ) | (29 | ) | ||||||||||||||||||
Balance, September 30, 2018 | $ | 16 | $ | 103 | $ | 13 | $ | (765 | ) | $ | (125 | ) | $ | (758 | ) | |||||||||
Balance, January 1, 2019 | $ | 14 | $ | 57 | $ | 5 | $ | (793 | ) | $ | (163 | ) | $ | (880 | ) | |||||||||
Other comprehensive income (loss) before reclassifications, after tax of $(2), $(265), $5, $0 and $0 | 3 | 999 | (16 | ) | (1 | ) | (11 | ) | 974 | |||||||||||||||
Reclassification of losses from accumulated other comprehensive income, after tax of $0, $(1), $0, $(7) and $0 | 1 | 4 | 26 | 31 | ||||||||||||||||||||
Other comprehensive income (loss) | 4 | 1,003 | (16 | ) | 25 | (11 | ) | 1,005 | ||||||||||||||||
Amounts attributable to noncontrolling interests | (107 | ) | (2 | ) | 1 | (108 | ) | |||||||||||||||||
Balance, September 30, 2019 | $ | 18 | $ | 953 | $ | (11 | ) | $ | (770 | ) | $ | (173 | ) | $ | 17 | |||||||||
Major Category of AOCI | Affected Line Item | |
OTTI gains (losses) | Investment gains (losses) | |
Unrealized gains (losses) on investments | Investment gains (losses) | |
Cash flow hedges | Operating revenues and other and Operating expenses and other | |
Pension liability | Operating expenses and other |
Total | ||||||||||||||||||||||||
Accumulated | ||||||||||||||||||||||||
OTTI | Unrealized | Foreign | Other | |||||||||||||||||||||
Gains | Gains (Losses) | Cash Flow | Pension | Currency | Comprehensive | |||||||||||||||||||
(Losses) | on Investments | Hedges | Liability | Translation | Income (Loss) | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Balance, January 1, 2018, as reported | $ | 22 | $ | 673 | $ | - | $ | (633 | ) | $ | (88 | ) | $ | (26 | ) | |||||||||
Cumulative effect adjustment from changes in accounting standards, after tax of $0, $8, $0, $0 and $0 | 4 | 98 | (130 | ) | (28 | ) | ||||||||||||||||||
Balance, January 1, 2018, as adjusted | 26 | 771 | - | (763 | ) | (88 | ) | (54 | ) | |||||||||||||||
Other comprehensive income (loss) before reclassifications, after tax of $3, $150, $(2), $0 and $0 | (11 | ) | (570 | ) | 12 | (41 | ) | (610 | ) | |||||||||||||||
Reclassification of (gains) losses from accumulated other comprehensive income, after tax of $0, $5, $0, $(5) and $0 | 1 | (18 | ) | 2 | 19 | 4 | ||||||||||||||||||
Other comprehensive income (loss) | (10 | ) | (588 | ) | 14 | 19 | (41 | ) | (606 | ) | ||||||||||||||
Amounts attributable to noncontrolling interests | 1 | 61 | (2 | ) | 4 | 64 | ||||||||||||||||||
Purchase of Boardwalk Pipelines common units | (1 | ) | (28 | ) | (29 | ) | ||||||||||||||||||
Balance, June 30, 2018 | $ | 17 | $ | 244 | $ | 13 | $ | (774 | ) | $ | (125 | ) | $ | (625 | ) | |||||||||
Balance, January 1, 2019 | $ | 14 | $ | 57 | $ | 5 | $ | (793 | ) | $ | (163 | ) | $ | (880 | ) | |||||||||
Other comprehensive income (loss) before reclassifications, after tax of $(2), $( 254) , $4 , $0 and $0 | 3 | 955 | (12 | ) | (1 | ) | 20 | 965 | ||||||||||||||||
Re classification of losses from accumulated othercomprehensive incom e, after tax of $0 , $(1) , $0 ,$ (5) and $0 | 1 | 7 | 16 | 24 | ||||||||||||||||||||
Other comprehensive income (loss) | 4 | 962 | (12 | ) | 15 | 20 | 989 | |||||||||||||||||
Amounts attributable to noncontrolling interests | (102 | ) | (2 | ) | (2 | ) | (106 | ) | ||||||||||||||||
Balance, June 30, 2019 | $ | 18 | $ | 917 | $ | (7 | ) | $ | (780 | ) | $ | (145 | ) | $ | 3 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(In millions) | ||||||||||||||||
Non-insurance warranty services – CNA Financial | $ | 285 | $ | 248 | $ | 566 | $ | 486 | ||||||||
Contract drilling – Diamond Offshore | 216 | 268 | 450 | 564 | ||||||||||||
Transportation and storage of natural gas and NGLs and other services – Boardwalk Pipelines | 321 | 281 | 660 | 612 | ||||||||||||
Lodging and related services – Loews Hotels & Co | 185 | 200 | 365 | 383 | ||||||||||||
Rigid plastic packaging and recycled resin – Corporate | 223 | 216 | 437 | 429 | ||||||||||||
Total revenues from contracts with customers | 945 | 965 | 1,912 | 1,988 | ||||||||||||
Other revenues | 16 | 14 | 34 | 34 | ||||||||||||
Operating revenues and other | $ | 961 | $ | 979 | $ | 1,946 | $ | 2,022 |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(In millions) | ||||||||||||||||
Non-insurance warranty services – CNA Financial | $ | | $ | | $ | 858 | | $ | 744 | |||||||
Contract drilling – Diamond Offshore | 254 | 287 | 704 | 851 | ||||||||||||
Transportation and storage of natural gas and NGLs and other services – Boardwalk Pipelines | 287 | 274 | 947 | 886 | ||||||||||||
Lodging and related services – Loews Hotels & Co | 147 | 167 | 512 | 550 | ||||||||||||
Rigid plastic packaging and recycled resin – Corporate | 252 | 223 | 689 | 652 | ||||||||||||
Total revenues from contracts with customers | 940 | 951 | 2,852 | 2,939 | ||||||||||||
Other revenues | 20 | 37 | 54 | 71 | ||||||||||||
Operating revenues and other | $ | 960 | | $ | 988 | $ | 2,906 | $ | 3,010 | |||||||
Pension Benefits | Pension Benefits | |||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
June 30, | June 30, | September 30, | September 30, | |||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Service cost | $ | 1 | $ | 2 | $ | 3 | $ | 4 | $ | 2 | $ | 2 | $ | 5 | $ | 6 | ||||||||||||||||
Interest cost | 30 | 28 | 59 | 55 | 29 | 27 | 88 | 82 | ||||||||||||||||||||||||
Expected return on plan assets | (40 | ) | (45 | ) | (80 | ) | (90 | ) | (39 | ) | (44 | ) | (119 | ) | (134 | ) | ||||||||||||||||
Amortization of unrecognized net loss | 12 | 10 | 23 | 21 | 10 | 11 | 33 | 32 | ||||||||||||||||||||||||
Settlement charge | 2 | 3 | 2 | 7 | 1 | 3 | 7 | |||||||||||||||||||||||||
Curtailment gain | (1 | ) | (1 | ) | ||||||||||||||||||||||||||||
Net periodic (benefit) cost | $ | 5 | $ | (2 | ) | $ | 7 | $ | (3 | ) | $ | 2 | $ | (4 | ) | $ | 9 | $ | (7 | ) | ||||||||||||
Other Postretirement Benefits | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(In millions) | ||||||||||||||||
Interest cost | $ | 1 | $ | 1 | ||||||||||||
Expected return on plan assets | $ | (1 | ) | $ | (1 | ) | (2 | ) | (2 | ) | ||||||
Amortization of unrecognized prior service benefit | (1 | ) | ||||||||||||||
Net periodic benefit | $ | (1 | ) | $ | (1 | ) | $ | (1 | ) | $ | (2 | ) |
Other Postretirement Benefits | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2019 | 2018 | 2018 | ||||||||||||||
(In millions) | ||||||||||||||||
Interest cost | $ | 1 | $ | 1 | $ | 2 | $ | 2 | ||||||||
Expected return on plan assets | (1 | ) | (2 | ) | (3 | ) | ||||||||||
Amortization of unrecognized prior service benefit | (1 | ) | (2 | ) | ||||||||||||
Amortization of unrecognized net gain | (1 | ) | (1 | ) | (1 | ) | (1 | ) | ||||||||
Net periodic (benefit) cost | $ | - | $ | (2 | ) | $ | (1 | ) | $ | (4 | ) | |||||
Three Months Ended June 30, 2019 | CNA Financial | Diamond Offshore | Boardwalk Pipelines | Loews Hotels & Co | Corporate | Total | ||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Insurance premiums | $ | 1,824 | $ | 1,824 | ||||||||||||||||||||
Net investment income | 515 | $ | 2 | $ | 1 | $ | 33 | 551 | ||||||||||||||||
Investment gains | 2 | 2 | ||||||||||||||||||||||
Non-insurance warranty revenue | 285 | 285 | ||||||||||||||||||||||
Operating revenues and other | 4 | 222 | $ | 327 | 185 | 223 | 961 | |||||||||||||||||
Total | 2,630 | 224 | 327 | 186 | 256 | 3,623 | ||||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Insurance claims and policyholders’ benefits | 1,352 | 1,352 | ||||||||||||||||||||||
Amortization of deferred acquisition costs | 338 | 338 | ||||||||||||||||||||||
Non-insurance warranty expense | 263 | 263 | ||||||||||||||||||||||
Operating expenses and other | 279 | 335 | 209 | 163 | 245 | 1,231 | ||||||||||||||||||
Interest | 55 | 31 | 46 | 5 | 27 | 164 | ||||||||||||||||||
Total | 2,287 | 366 | 255 | 168 | 272 | 3,348 | ||||||||||||||||||
Income (loss) before income tax | 343 | (142 | ) | 72 | 18 | (16 | ) | 275 | ||||||||||||||||
Income tax (expense) benefit | (64 | ) | 36 | (19 | ) | (6 | ) | 3 | (50 | ) | ||||||||||||||
Net income (loss) | 279 | (106 | ) | 53 | 12 | (13 | ) | 225 | ||||||||||||||||
Amounts attributable to noncontrolling interests | (30 | ) | 54 | 24 | ||||||||||||||||||||
Net income (loss) attributable to Loews Corporation | $ | 249 | $ | (52 | ) | $ | 53 | $ | 12 | $ | (13 | ) | $ | 249 |
CNA | Diamond | Boardwalk | Loews | |||||||||||||||||||||
Three Months Ended September 30, 2019 | Financial | Offshore | Pipelines | Hotels & Co | Corporate | Total | ||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Insurance premiums | $ | 1,890 | $ | 1,890 | ||||||||||||||||||||
Net investment income | 487 | $ | 2 | $ | 36 | 525 | ||||||||||||||||||
Investment gains | 8 | 8 | ||||||||||||||||||||||
Non-insurance warranty revenue | 292 | 292 | ||||||||||||||||||||||
Operating revenues and other | 9 | 249 | $ | 296 | $ | 156 | 250 | 960 | ||||||||||||||||
Total | 2,686 | 251 | 296 | 156 | 286 | 3,675 | ||||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Insurance claims and policyholders’ benefits | 1,614 | 1,614 | ||||||||||||||||||||||
Amortization of deferred acquisition costs | 345 | 345 | ||||||||||||||||||||||
Non-insurance warranty expense | 278 | 278 | ||||||||||||||||||||||
Operating expenses and other | 291 | 322 | 212 | 145 | 264 | 1,234 | ||||||||||||||||||
Interest | 31 | 31 | 45 | 6 | 31 | 144 | ||||||||||||||||||
Total | 2,559 | 353 | 257 | 151 | 295 | 3,615 | ||||||||||||||||||
Income (loss) before income tax | 127 | (102 | ) | 39 | 5 | (9 | ) | 60 | ||||||||||||||||
Income tax (expense) benefit | (20 | ) | 10 | (10 | ) | (2 | ) | 1 | (21 | ) | ||||||||||||||
Net income (loss) | 107 | (92 | ) | 29 | 3 | (8 | ) | 39 | ||||||||||||||||
Amounts attributable to noncontrolling interests | (11 | ) | 44 | 33 | ||||||||||||||||||||
Net income (loss) attributable to Loews Corporation | $ | 96 | $ | (48 | ) | $ | 29 | $ | 3 | $ | (8 | ) | $ | 72 | ||||||||||
Three Months Ended June 30, 2018 | CNA Financial | Diamond Offshore | Boardwalk Pipelines | Loews Hotels & Co | Corporate | Total | ||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Insurance premiums | $ | 1,815 | $ | 1,815 | ||||||||||||||||||||
Net investment income | 506 | $ | 2 | $ | 1 | $ | 42 | 551 | ||||||||||||||||
Investment losses | (3 | ) | (3 | ) | ||||||||||||||||||||
Non-insurance warranty revenue | 248 | 248 | ||||||||||||||||||||||
Operating revenues and other | 8 | 269 | $ | 285 | 200 | 217 | 979 | |||||||||||||||||
Total | 2,574 | 271 | 285 | 201 | 259 | 3,590 | ||||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Insurance claims and policyholders’ benefits | 1,327 | 1,327 | ||||||||||||||||||||||
Amortization of deferred acquisition costs | 359 | 359 | ||||||||||||||||||||||
Non-insurance warranty expense | 225 | 225 | ||||||||||||||||||||||
Operating expenses and other | 299 | 320 | 203 | 169 | 238 | 1,229 | ||||||||||||||||||
Interest | 35 | 30 | 43 | 8 | 27 | 143 | ||||||||||||||||||
Total | 2,245 | 350 | 246 | 177 | 265 | 3,283 | ||||||||||||||||||
Income (loss) before income tax | 329 | (79 | ) | 39 | 24 | (6 | ) | 307 | ||||||||||||||||
Income tax (expense) benefit | (60 | ) | 10 | (2 | ) | (7 | ) | (59 | ) | |||||||||||||||
Net income (loss) | 269 | (69 | ) | 37 | 17 | (6 | ) | 248 | ||||||||||||||||
Amounts attributable to noncontrolling interests | (29 | ) | 32 | (21 | ) | (18 | ) | |||||||||||||||||
Net income (loss) attributable to Loews Corporation | $ | 240 | $ | (37 | ) | $ | 16 | $ | 17 | $ | (6 | ) | $ | 230 |
CNA | Diamond | Boardwalk | Loews | |||||||||||||||||||||
Three Months Ended September 30, 2018 | Financial | Offshore | Pipelines | Hotels & Co | Corporate | Total | ||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Insurance premiums | $ | 1,853 | $ | 1,853 | ||||||||||||||||||||
Net investment income | 487 | $ | 2 | $ | 5 | 494 | ||||||||||||||||||
Investment gains | 15 | 15 | ||||||||||||||||||||||
Non-insurance warranty revenue | 258 | 258 | ||||||||||||||||||||||
Operating revenues and other | 9 | 287 | $ | 279 | $ | 190 | 223 | 988 | ||||||||||||||||
Total | 2,622 | 289 | 279 | 190 | 228 | 3,608 | ||||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Insurance claims and policyholders’ benefits | 1,312 | 1,312 | ||||||||||||||||||||||
Amortization of deferred acquisition costs | 337 | 337 | ||||||||||||||||||||||
Non-insurance warranty expense | 235 | 235 | ||||||||||||||||||||||
Operating expenses and other | 303 | 311 | 197 | 169 | 244 | 1,224 | ||||||||||||||||||
Interest | 34 | 34 | 44 | 7 | 27 | 146 | ||||||||||||||||||
Total | 2,221 | 345 | 241 | 176 | 271 | 3,254 | ||||||||||||||||||
Income (loss) before income tax | 401 | (56 | ) | 38 | 14 | (43 | ) | 354 | ||||||||||||||||
Income tax (expense) benefit | (66 | ) | 5 | (10 | ) | (3 | ) | 9 | (65 | ) | ||||||||||||||
Net income (loss) | 335 | (51 | ) | 28 | 11 | (34 | ) | 289 | ||||||||||||||||
Amounts attributable to noncontrolling interests | (35 | ) | 24 | (11 | ) | |||||||||||||||||||
Net income (loss) attributable to Loews Corporation | $ | 300 | $ | (27 | ) | $ | 28 | $ | 11 | $ | (34 | ) | $ | 278 | ||||||||||
CNA | Diamond | Boardwalk | Loews | |||||||||||||||||||||
Nine Months Ended September 30, 2019 | Financial | Offshore | Pipelines | Hotels & Co | Corporate | Total | ||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Insurance premiums | $ | 5,517 | $ | 5,517 | ||||||||||||||||||||
Net investment income | 1,573 | $ | 6 | $ | 1 | $ | 153 | 1,733 | ||||||||||||||||
Investment gains | 41 | 41 | ||||||||||||||||||||||
Non-insurance warranty revenue | 858 | 858 | ||||||||||||||||||||||
Operating revenues and other | 22 | 705 | $ | 969 | 521 | 689 | 2,906 | |||||||||||||||||
Total | 8,011 | 711 | 969 | 522 | 842 | 11,055 | ||||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Insurance claims and policyholders’ benefits | 4,323 | 4,323 | ||||||||||||||||||||||
Amortization of deferred acquisition costs | 1,025 | 1,025 | ||||||||||||||||||||||
Non-insurance warranty expense | 801 | 801 | ||||||||||||||||||||||
Operating expenses and other | 854 | 940 | 616 | 464 | 740 | 3,614 | ||||||||||||||||||
Interest | 120 | 92 | 136 | 16 | 85 | 449 | ||||||||||||||||||
Total | 7,123 | 1,032 | 752 | 480 | 825 | 10,212 | ||||||||||||||||||
Income (loss) before income tax | 888 | (321 | ) | 217 | 42 | 17 | 843 | |||||||||||||||||
Income tax (expense) benefit | (161 | ) | 52 | (56 | ) | (14 | ) | (4 | ) | (183 | ) | |||||||||||||
Net income (loss) | 727 | (269 | ) | 161 | 28 | 13 | 660 | |||||||||||||||||
Amounts attributable to noncontrolling interests | (77 | ) | 132 | 55 | ||||||||||||||||||||
Net income (loss) attributable to Loews Corporation | $ | 650 | $ | (137 | ) | $ | 161 | $ | 28 | $ | 13 | $ | 715 | |||||||||||
Six Months Ended June 30, 2019 | CNA Financial | Diamond Offshore | Boardwalk Pipelines | Loews Hotels & Co | Corporate | Total | ||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Insurance premiums | $ | 3,627 | $ | 3,627 | ||||||||||||||||||||
Net investment income | 1,086 | $ | 4 | $ | 1 | $ | 117 | 1,208 | ||||||||||||||||
Investment gains | 33 | 33 | ||||||||||||||||||||||
Non-insurance warranty revenue | 566 | 566 | ||||||||||||||||||||||
Operating revenues and other | 13 | 456 | $ | 673 | 365 | 439 | 1,946 | |||||||||||||||||
Total | 5,325 | 460 | 673 | 366 | 556 | 7,380 | ||||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Insurance claims and policyholders’ benefits | 2,709 | 2,709 | ||||||||||||||||||||||
Amortization of deferred acquisition costs | 680 | 680 | ||||||||||||||||||||||
Non-insurance warranty expense | 523 | 523 | ||||||||||||||||||||||
Operating expenses and other | 563 | 618 | 404 | 319 | 476 | 2,380 | ||||||||||||||||||
Interest | 89 | 61 | 91 | 10 | 54 | 305 | ||||||||||||||||||
Total | 4,564 | 679 | 495 | 329 | 530 | 6,597 | ||||||||||||||||||
Income (loss) before income tax | 761 | (219 | ) | 178 | 37 | 26 | 783 | |||||||||||||||||
Income tax (expense) benefit | (141 | ) | 42 | (46 | ) | (12 | ) | (5 | ) | (162 | ) | |||||||||||||
Net income (loss) | 620 | (177 | ) | 132 | 25 | 21 | 621 | |||||||||||||||||
Amounts attributable to noncontrolling interests | (66 | ) | 88 | 22 | ||||||||||||||||||||
Net income (loss) attributable to Loews Corporation | $ | 554 | $ | (89 | ) | $ | 132 | $ | 25 | $ | 21 | $ | 643 |
CNA | Diamond | Boardwalk | Loews | |||||||||||||||||||||
Nine Months Ended September 30, 2018 | Financial | Offshore | Pipelines | Hotels & Co | Corporate | Total | ||||||||||||||||||
(In milli o ns) | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Insurance premiums | $ | 5,453 | $ | 5,453 | ||||||||||||||||||||
Net investment income | 1,483 | $ | 6 | $ | 1 | $ | 61 | 1,551 | ||||||||||||||||
Investment gains | 21 | 21 | ||||||||||||||||||||||
Non-insurance warranty revenue | 744 | 744 | ||||||||||||||||||||||
Operating revenues and other | 30 | 853 | $ | 901 | 573 | 653 | 3,010 | |||||||||||||||||
Total | 7,731 | 859 | 901 | 574 | 714 | 10,779 | ||||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Insurance claims and policyholders’ benefits | 3,978 | 3,978 | ||||||||||||||||||||||
Amortization of deferred acquisition costs | 992 | 992 | ||||||||||||||||||||||
Non-insurance warranty expense | 676 | 676 | ||||||||||||||||||||||
Operating expenses and other | 904 | 927 | 598 | 494 | 714 | 3,637 | ||||||||||||||||||
Interest | 104 | 92 | 131 | 22 | 81 | 430 | ||||||||||||||||||
Total | 6,654 | 1,019 | 729 | 516 | 795 | 9,713 | ||||||||||||||||||
Income (loss) before income tax | 1,077 | (160 | ) | 172 | 58 | (81 | ) | 1,066 | ||||||||||||||||
Income tax (expense) benefit | (181 | ) | 59 | (24 | ) | (17 | ) | 14 | (149 | ) | ||||||||||||||
Net income (loss) | 896 | (101 | ) | 148 | 41 | (67 | ) | 917 | ||||||||||||||||
Amounts attributable to noncontrolling interests | (95 | ) | 47 | (68 | ) | (116 | ) | |||||||||||||||||
Net income (loss) attributable to Loews Corporation | $ | 801 | $ | (54 | ) | $ | 80 | $ | 41 | $ | (67 | ) | $ | 801 | ||||||||||
Six Months Ended June 30, 2018 | CNA Financial | Diamond Offshore | Boardwalk Pipelines | Loews Hotels & Co | Corporate | Total | ||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Insurance premiums | $ | 3,600 | $ | 3,600 | ||||||||||||||||||||
Net investment income | 996 | $ | 4 | $ | 1 | $ | 56 | 1,057 | ||||||||||||||||
Investment gains | 6 | 6 | ||||||||||||||||||||||
Non-insurance warranty revenue | 486 | 486 | ||||||||||||||||||||||
Operating revenues and other | 21 | 566 | $ | 622 | 383 | 430 | 2,022 | |||||||||||||||||
Total | 5,109 | 570 | 622 | 384 | 486 | 7,171 | ||||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Insurance claims and policyholders’ benefits | 2,666 | 2,666 | ||||||||||||||||||||||
Amortization of deferred acquisition costs | 655 | 655 | ||||||||||||||||||||||
Non-insurance warranty expense | 441 | 441 | ||||||||||||||||||||||
Operating expenses and other | 601 | 616 | 401 | 325 | 470 | 2,413 | ||||||||||||||||||
Interest | 70 | 58 | 87 | 15 | 54 | 284 | ||||||||||||||||||
Total | 4,433 | 674 | 488 | 340 | 524 | 6,459 | ||||||||||||||||||
Income (loss) before income tax | 676 | (104 | ) | 134 | 44 | �� | (38 | ) | 712 | |||||||||||||||
Income tax (expense) benefit | (115 | ) | 54 | (14 | ) | (14 | ) | 5 | (84 | ) | ||||||||||||||
Net income (loss) | 561 | (50 | ) | 120 | 30 | (33 | ) | 628 | ||||||||||||||||
Amounts attributable to noncontrolling interests | (60 | ) | 23 | (68 | ) | (105 | ) | |||||||||||||||||
Net income (loss) attributable to Loews Corporation | $ | 501 | $ | (27 | ) | $ | 52 | $ | 30 | $ | (33 | ) | $ | 523 |
Page No. | ||||
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
(In millions, except per share data) | ||||||||||||||||||||||||||||||||
CNA Financial | $ | 249 | $ | 240 | $ | 554 | $ | 501 | $ | 96 | $ | 300 | $ | 650 | $ | 801 | ||||||||||||||||
Diamond Offshore | (52 | ) | (37 | ) | (89 | ) | (27 | ) | (48 | ) | (27 | ) | (137 | ) | (54 | ) | ||||||||||||||||
Boardwalk Pipelines | 53 | 16 | 132 | 52 | 29 | 28 | 161 | 80 | ||||||||||||||||||||||||
Loews Hotels & Co | 12 | 17 | 25 | 30 | 3 | 11 | 28 | 41 | ||||||||||||||||||||||||
Corporate | (13 | ) | (6 | ) | 21 | (33 | ) | (8 | ) | (34 | ) | 13 | (67 | ) | ||||||||||||||||||
Net income attributable to Loews Corporation | $ | 249 | $ | 230 | $ | 643 | $ | 523 | $ | 72 | $ | 278 | $ | 715 | $ | 801 | ||||||||||||||||
Basic net income per share | $ | 0.82 | $ | 0.72 | $ | 2.10 | $ | 1.62 | $ | 0.24 | $ | 0.88 | $ | 2.34 | $ | 2.50 | ||||||||||||||||
Diluted net income per share | $ | 0.82 | $ | 0.72 | $ | 2.09 | $ | 1.61 | $ | 0.24 | $ | 0.88 | $ | 2.34 | $ | 2.49 | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Insurance premiums | $ | 1,824 | $ | 1,815 | $ | 3,627 | $ | 3,600 | $ | 1,890 | $ | 1,853 | $ | 5,517 | $ | 5,453 | ||||||||||||||||
Net investment income | 515 | 506 | 1,086 | 996 | 487 | 487 | 1,573 | 1,483 | ||||||||||||||||||||||||
Investment gains (losses) | 2 | (3 | ) | 33 | 6 | |||||||||||||||||||||||||||
Investment gains | 8 | 15 | 41 | 21 | ||||||||||||||||||||||||||||
Non-insurance warranty revenue | 285 | 248 | 566 | 486 | 292 | 258 | 858 | 744 | ||||||||||||||||||||||||
Other revenues | 4 | 8 | 13 | 21 | 9 | 9 | 22 | 30 | ||||||||||||||||||||||||
Total | 2,630 | 2,574 | 5,325 | 5,109 | 2,686 | 2,622 | 8,011 | 7,731 | ||||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||
Insurance claims and policyholders’ benefits | 1,352 | 1,327 | 2,709 | 2,666 | 1,614 | 1,312 | 4,323 | 3,978 | ||||||||||||||||||||||||
Amortization of deferred acquisition costs | 338 | 359 | 680 | 655 | 345 | 337 | 1,025 | 992 | ||||||||||||||||||||||||
Non-insurance warranty expense | 263 | 225 | 523 | 441 | 278 | 235 | 801 | 676 | ||||||||||||||||||||||||
Other operating expenses | 279 | 299 | 563 | 601 | 291 | 303 | 854 | 904 | ||||||||||||||||||||||||
Interest | 55 | 35 | 89 | 70 | 31 | 34 | 120 | 104 | ||||||||||||||||||||||||
Total | 2,287 | 2,245 | 4,564 | 4,433 | 2,559 | 2,221 | 7,123 | 6,654 | ||||||||||||||||||||||||
Income before income tax | 343 | 329 | 761 | 676 | 127 | 401 | 888 | 1,077 | ||||||||||||||||||||||||
Income tax expense | (64 | ) | (60 | ) | (141 | ) | (115 | ) | (20 | ) | (66 | ) | (161 | ) | (181 | ) | ||||||||||||||||
Net income | 279 | 269 | 620 | 561 | 107 | 335 | 727 | 896 | ||||||||||||||||||||||||
Amounts attributable to noncontrolling interests | (30 | ) | (29 | ) | (66 | ) | (60 | ) | (11 | ) | (35 | ) | (77 | ) | (95 | ) | ||||||||||||||||
Net income attributable to Loews Corporation | $ | 249 | $ | 240 | $ | 554 | $ | 501 | $ | 96 | $ | 300 | $ | 650 | $ | 801 | ||||||||||||||||
Three Months Ended June 30, 2019 | Specialty | Commercial | International | Total | ||||||||||||||||||||||||||||||
Three Months Ended September 30, 2019 | Specialty | Commercial | International | Total | ||||||||||||||||||||||||||||||
(In millions, except %) | ||||||||||||||||||||||||||||||||||
Gross written premiums | $ | 1,766 | $ | 860 | $ | 226 | $ | 2,852 | ||||||||||||||||||||||||||
Gross written premiums excluding third party captives | 778 | 852 | 226 | 1,856 | ||||||||||||||||||||||||||||||
Net written premiums | 732 | 775 | 201 | 1,708 | ||||||||||||||||||||||||||||||
Net earned premiums | 712 | 813 | 236 | 1,761 | ||||||||||||||||||||||||||||||
Net investment income | 121 | 136 | 17 | 274 | ||||||||||||||||||||||||||||||
Core income (loss) | 153 | 97 | (9 | ) | 241 | |||||||||||||||||||||||||||||
Other performance metrics: | ||||||||||||||||||||||||||||||||||
Loss and loss adjustment expense ratio | 57.8 | % | 69.3 | % | 69.4 | % | 64.7 | % | ||||||||||||||||||||||||||
Expense ratio | 31.8 | 31.7 | 38.0 | 32.5 | ||||||||||||||||||||||||||||||
Dividend ratio | 0.2 | 0.6 | 0.4 | |||||||||||||||||||||||||||||||
Combined ratio | 89.8 | % | 101.6 | % | 107.4 | % | 97.6 | % | ||||||||||||||||||||||||||
Rate | 6 | % | 4 | % | 10 | % | 6 | % | ||||||||||||||||||||||||||
Renewal premium change | 8 | 5 | 6 | 6 | ||||||||||||||||||||||||||||||
Retention | 87 | 84 | 71 | 83 | ||||||||||||||||||||||||||||||
New business | $ | 91 | $ | 173 | $ | 52 | $ | 316 | ||||||||||||||||||||||||||
Three Months Ended September 30, 2018 | ||||||||||||||||||||||||||||||||||
Gross written premiums | $ | 1,715 | $ | 758 | $ | 230 | $ | 2,703 | ||||||||||||||||||||||||||
Gross written premiums excluding third party captives | 714 | 756 | 230 | 1,700 | ||||||||||||||||||||||||||||||
Net written premiums | $ | 713 | $ | 912 | $ | 249 | $ | 1,874 | 688 | 697 | 196 | 1,581 | ||||||||||||||||||||||
Net earned premiums | 688 | 763 | 243 | 1,694 | 684 | 782 | 255 | 1,721 | ||||||||||||||||||||||||||
Net investment income | 134 | 154 | 15 | 303 | 124 | 144 | 14 | 282 | ||||||||||||||||||||||||||
Core income | 161 | 120 | 17 | 298 | 177 | 127 | 1 | 305 | ||||||||||||||||||||||||||
Other performance metrics: | ||||||||||||||||||||||||||||||||||
Loss and loss adjustment expense ratio | 57.4 | % | 66.5 | % | 60.2 | % | 61.9 | % | 54.5 | % | 63.5 | % | 67.6 | % | 60.5 | % | ||||||||||||||||||
Expense ratio | 33.1 | 32.6 | 37.3 | 33.4 | 32.3 | 33.2 | 36.3 | 33.3 | ||||||||||||||||||||||||||
Dividend ratio | 0.2 | 0.6 | 0.4 | 0.2 | 0.7 | 0.4 | ||||||||||||||||||||||||||||
Combined ratio | 90.7 | % | 99.7 | % | 97.5 | % | 95.7 | % | 87.0 | % | 97.4 | % | 103.9 | % | 94.2 | % | ||||||||||||||||||
Rate | 4 | % | 3 | % | 7 | % | 4 | % | 2 | % | 2 | % | 4 | % | 2 | % | ||||||||||||||||||
Renewal premium change | 5 | 5 | 8 | 5 | 5 | 4 | 8 | 5 | ||||||||||||||||||||||||||
Retention | 88 | 85 | 67 | 83 | 85 | 84 | 72 | 83 | ||||||||||||||||||||||||||
New business | $ | 97 | $ | 186 | $ | 75 | $ | 358 | $ | 93 | $ | 122 | $ | 71 | $ | 286 | ||||||||||||||||||
Three Months Ended June 30, 2018 | ||||||||||||||||||||||||||||||||||
Net written premiums | $ | 688 | $ | 810 | $ | 271 | $ | 1,769 | ||||||||||||||||||||||||||
Net earned premiums | 683 | 753 | 248 | 1,684 | ||||||||||||||||||||||||||||||
Net investment income | 130 | 157 | 15 | 302 | ||||||||||||||||||||||||||||||
Core income (loss) | 183 | 143 | (7 | ) | 319 | |||||||||||||||||||||||||||||
Other performance metrics: | ||||||||||||||||||||||||||||||||||
Loss and loss adjustment expense ratio | 54.6 | % | 62.4 | % | 66.8 | % | 59.9 | % | ||||||||||||||||||||||||||
Expense ratio | 32.0 | 33.5 | 37.9 | 33.5 | ||||||||||||||||||||||||||||||
Dividend ratio | 0.2 | 0.7 | 0.4 | |||||||||||||||||||||||||||||||
Combined ratio | 86.8 | % | 96.6 | % | 104.7 | % | 93.8 | % | ||||||||||||||||||||||||||
Rate | 2 | % | 1 | % | 3 | % | 1 | % | ||||||||||||||||||||||||||
Renewal premium change | 5 | 4 | 5 | 4 | ||||||||||||||||||||||||||||||
Retention | 83 | 86 | 77 | 83 | ||||||||||||||||||||||||||||||
New business | $ | 93 | $ | 157 | $ | 82 | $ | 332 |
Nine Months Ended September 30, 2019 | Specialty | Commercial | International | Total | |||||||||||||
(In millions, except %) | |||||||||||||||||
Gross written premiums | $ | 5,191 | $ | 2,825 | $ | 837 | $ | 8,853 | |||||||||
Gross written premiums excluding third party captives | 2,263 | 2,742 | 837 | 5,842 | |||||||||||||
Net written premiums | 2,143 | 2,536 | 709 | 5,388 | |||||||||||||
Net earned premiums | 2,061 | 2,339 | 729 | 5,129 | |||||||||||||
Net investment income | 410 | 480 | 47 | 937 | |||||||||||||
Core income | 483 | 356 | 14 | 853 | |||||||||||||
Other performance metrics: | |||||||||||||||||
Loss and loss adjustment expense ratio | 58.1 | % | 67.6 | % | 64.7 | % | 63.4 | % | |||||||||
Expense ratio | 32.6 | 32.7 | 37.5 | 33.3 | |||||||||||||
Dividend ratio | 0.2 | 0.6 | 0.4 | ||||||||||||||
Combined ratio | 90.9 | % | 100.9 | % | 102.2 | % | 97.1 | % | |||||||||
Rate | 4 | % | 3 | % | 7 | % | 4 | % | |||||||||
Renewal premium change | 6 | 4 | 5 | 5 | |||||||||||||
Retention | 88 | 86 | 69 | 83 | |||||||||||||
New business | $ | 274 | $ | 522 | $ | 207 | $ | 1,003 | |||||||||
Nine Months Ended September 30, 2018 | |||||||||||||||||
Gross written premiums | $ | 5,222 | $ | 2,563 | $ | 884 | $ | 8,669 | |||||||||
Gross written premiums excluding third party captives | 2,130 | 2,483 | 884 | 5,497 | |||||||||||||
Net written premiums | 2,062 | 2,339 | 762 | 5,163 | |||||||||||||
Net earned premiums | 2,039 | 2,278 | 739 | 5,056 | |||||||||||||
Net investment income | 376 | 450 | 43 | 869 | |||||||||||||
Core income | 531 | 403 | 17 | 951 | |||||||||||||
Other performance metrics: | |||||||||||||||||
Loss and loss adjustment expense ratio | 55.1 | % | 63.0 | % | 65.0 | % | 60.1 | % | |||||||||
Expense ratio | 31.8 | 33.3 | 36.8 | 33.2 | |||||||||||||
Dividend ratio | 0.2 | 0.7 | 0.4 | ||||||||||||||
Combined ratio | 87.1 | % | 97.0 | % | 101.8 | % | 93.7 | % | |||||||||
Rate | 2 | % | 1 | % | 3 | % | 2 | % | |||||||||
Renewal premium change | 5 | 5 | 6 | 5 | |||||||||||||
Retention | 84 | 85 | 79 | 84 | |||||||||||||
New business | $ | 266 | $ | 462 | $ | 247 | $ | 975 |
Six Months Ended June 30, 2019 | Specialty | Commercial | International | Total | |||||||||||||
(In millions, except %) | |||||||||||||||||
Net written premiums | $ | 1,411 | $ | 1,761 | $ | 508 | $ | 3,680 | |||||||||
Net earned premiums | 1,349 | 1,526 | 493 | 3,368 | |||||||||||||
Net investment income | 289 | 344 | 30 | 663 | |||||||||||||
Core income | 330 | 259 | 23 | 612 | |||||||||||||
Other performance metrics: | |||||||||||||||||
Loss and loss adjustment expense ratio | 58.3 | % | 66.7 | % | 62.5 | % | 62.7 | % | |||||||||
Expense ratio | 33.0 | 33.2 | 37.2 | 33.7 | |||||||||||||
Dividend ratio | 0.2 | 0.6 | 0.4 | ||||||||||||||
Combined ratio | 91.5 | % | 100.5 | % | 99.7 | % | 96.8 | % | |||||||||
Rate | 4 | % | 2 | % | 6 | % | 3 | % | |||||||||
Renewal premium change | 4 | 4 | 3 | 4 | |||||||||||||
Retention | 89 | 85 | 67 | 83 | |||||||||||||
New business | $ | 183 | $ | 350 | $ | 155 | $ | 688 | |||||||||
Six Months Ended June 30, 2018 | |||||||||||||||||
Net written premiums | $ | 1,374 | $ | 1,642 | $ | 566 | $ | 3,582 | |||||||||
Net earned premiums | 1,355 | 1,496 | 484 | 3,335 | |||||||||||||
Net investment income | 252 | 306 | 29 | 587 | |||||||||||||
Core income | 354 | 276 | 16 | 646 | |||||||||||||
Other performance metrics: | |||||||||||||||||
Loss and loss adjustment expense ratio | 55.4 | % | 62.7 | % | 63.7 | % | 59.9 | % | |||||||||
Expense ratio | 31.6 | 33.4 | 37.1 | 33.2 | |||||||||||||
Dividend ratio | 0.2 | 0.7 | 0.4 | ||||||||||||||
Combined ratio | 87.2 | % | 96.8 | % | 100.8 | % | 93.5 | % | |||||||||
Rate | 2 | % | 1 | % | 3 | % | 2 | % | |||||||||
Renewal premium change | 5 | 5 | 5 | 5 | |||||||||||||
Retention | 84 | 85 | 81 | 84 | |||||||||||||
New business | $ | 173 | $ | 339 | $ | 175 | $ | 687 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Net earned premiums | $ | 130 | $ | 131 | $ | 260 | $ | 265 | $ | 130 | $ | 133 | $ | 390 | $ | 398 | ||||||||||||||||
Net investment income | 212 | 204 | 423 | 409 | 213 | 205 | 636 | 614 | ||||||||||||||||||||||||
Core loss | (4 | ) | (49 | ) | - | (95 | ) | |||||||||||||||||||||||||
Core income (loss) | (139 | ) | 12 | (139 | ) | (83 | ) |
(In millions) | ||||
Long term care active life reserve - change in estimated reserve margin | ||||
September 30, 2018 estimated margin | $ | 182 | ||
Changes in underlying discount rate assumptions | (280 | ) | ||
Changes in underlying morbidity assumptions | 32 | |||
Changes in underlying persistency assumptions and inforce policy inventory | (234 | ) | ||
Changes in underlying premium rate action assumptions | 58 | |||
Changes in underlying expense and other assumptions | 26 | |||
September 30, 2019 Premium Deficiency | $ | (216 | ) | |
September 30, 2019 | Estimated Reduction to Pretax Income | |||
(In millions) | ||||
Hypothetical revisions | ||||
Morbidity: | ||||
5% increase in morbidity | $ | 664 | ||
10% increase in morbidity | 1,329 | |||
Persistency: | ||||
5% decrease in active life mortality and lapse | $ | 208 | ||
10% decrease in active life mortality and lapse | 427 | |||
Discount rates: | ||||
50 basis point decline in new money interest rates | $ | 309 | ||
100 basis point decline in new money interest rates | 675 | |||
Premium rate actions: | ||||
25% decrease in anticipated future premium rate increases | $ | 58 | ||
50% decrease in anticipated future premium rate increases | 115 |
September 30, 2019 | Claim and claim adjustment expenses | Future policy benefits | Total | |||||||||
(In millions) | ||||||||||||
Long term care | $ | 2,840 | $ | 9,415 | $ | 12,255 | ||||||
Structured settlement annuities | 519 | 519 | ||||||||||
Other | 13 | 13 | ||||||||||
Total | 3,372 | 9,415 | 12,787 | |||||||||
Shadow adjustments (a) | 168 | 2,664 | 2,832 | |||||||||
Ceded reserves (b) | 167 | 226 | 393 | |||||||||
Total gross reserves | $ | 3,707 | $ | 12,305 | $ | 16,012 | ||||||
December 31, 2018 | ||||||||||||
Long term care | $ | 2,761 | $ | 9,113 | $ | 11,874 | ||||||
Structured settlement annuities | 530 | 530 | ||||||||||
Other | 14 | 14 | ||||||||||
Total | 3,305 | 9,113 | 12,418 | |||||||||
Shadow adjustments (a) | 115 | 1,250 | 1,365 | |||||||||
Ceded reserves (b) | 181 | 234 | 415 | |||||||||
Total gross reserves | $ | 3,601 | $ | 10,597 | $ | 14,198 | ||||||
(a) | To the extent that unrealized gains on fixed income securities supporting long term care products and annuity contracts would result in a premium deficiency if those gains were realized, an increase in Insurance reserves is recorded, after tax and noncontrolling interests, as a reduction of net unrealized gains through Other comprehensive income (loss) (“Shadow Adjustments”). |
(b) | Ceded reserves relate to claim or policy reserves fully reinsured in connection with a sale or exit from the underlying business. |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Core income (loss): | ||||||||||||||||||||||||||||||||
Property & Casualty Operations | $ | 298 | $ | 319 | $ | 612 | $ | 646 | $ | 241 | $ | 305 | $ | 853 | $ | 951 | ||||||||||||||||
Other Insurance Operations | (4 | ) | (49 | ) | (95 | ) | (139 | ) | 12 | (139 | ) | (83 | ) | |||||||||||||||||||
Total core income | 294 | 270 | 612 | 551 | 102 | 317 | 714 | 868 | ||||||||||||||||||||||||
Investment gains (losses) (after tax) | 1 | (1 | ) | 24 | 7 | |||||||||||||||||||||||||||
Investment gains (after tax) | 6 | 12 | 30 | 19 | ||||||||||||||||||||||||||||
Consolidating adjustments including purchase accounting and noncontrolling interests | (46 | ) | (29 | ) | (82 | ) | (57 | ) | (12 | ) | (29 | ) | (94 | ) | (86 | ) | ||||||||||||||||
Net income attributable to Loews Corporation | $ | 249 | $ | 240 | $ | 554 | $ | 501 | $ | 96 | $ | 300 | $ | 650 | $ | 801 | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Net investment income | $ | 2 | $ | 2 | $ | 4 | $ | 4 | $ | 2 | $ | 2 | $ | 6 | $ | 6 | ||||||||||||||||
Contract drilling revenues | 207 | 265 | 434 | 553 | 242 | 281 | 676 | 834 | ||||||||||||||||||||||||
Other revenues | 15 | 4 | 22 | 13 | 7 | 6 | 29 | 19 | ||||||||||||||||||||||||
Total | 224 | 271 | 460 | 570 | 251 | 289 | 711 | 859 | ||||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||
Contract drilling expenses | 225 | 189 | 392 | 374 | 202 | 188 | 594 | 562 | ||||||||||||||||||||||||
Other operating expenses | ||||||||||||||||||||||||||||||||
Impairment of assets | 27 | 27 | 27 | |||||||||||||||||||||||||||||
Other expenses | 110 | 104 | 226 | 215 | 120 | 123 | 346 | 338 | ||||||||||||||||||||||||
Interest | 31 | 30 | 61 | 58 | 31 | 34 | 92 | 92 | ||||||||||||||||||||||||
Total | 366 | 350 | 679 | 674 | 353 | 345 | 1,032 | 1,019 | ||||||||||||||||||||||||
Loss before income tax | (142 | ) | (79 | ) | (219 | ) | (104) | (102 | ) | (56 | ) | (321 | ) | (160 | ) | |||||||||||||||||
Income tax benefit | 36 | 10 | 42 | 54 | 10 | 5 | 52 | 59 | ||||||||||||||||||||||||
Amounts attributable to noncontrolling interests | 54 | 32 | 88 | 23 | 44 | 24 | 132 | 47 | ||||||||||||||||||||||||
Net loss attributable to Loews Corporation | $ | (52 | ) | $ | (37 | ) | $ | (89 | ) | $ (27) | $ | (48 | ) | $ | (27 | ) | $ | (137 | ) | $ | (54 | ) | ||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Other revenue, primarily operating | $ 327 | $ 285 | $ 673 | $ 622 | $ | 296 | $ | 279 | $ | 969 | $ | 901 | ||||||||||||||||||||
Total | 327 | 285 | 673 | 622 | 296 | 279 | 969 | 901 | ||||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||
Operating | 209 | 203 | 404 | 401 | 212 | 197 | 616 | 598 | ||||||||||||||||||||||||
Interest | 46 | 43 | 91 | 87 | 45 | 44 | 136 | 131 | ||||||||||||||||||||||||
Total | 255 | 246 | 495 | 488 | 257 | 241 | 752 | 729 | ||||||||||||||||||||||||
Income before income tax | 72 | 39 | 178 | 134 | 39 | 38 | 217 | 172 | ||||||||||||||||||||||||
Income tax expense | (19 | ) | (2 | ) | (46 | ) | (14 | ) | (10 | ) | (10 | ) | (56 | ) | (24 | ) | ||||||||||||||||
Amounts attributable to noncontrolling interests | (21 | ) | (68 | ) | (68 | ) | ||||||||||||||||||||||||||
Net income attributable to Loews Corporation | $ 53 | $ 16 | $ 132 | $ 52 | $ | 29 | $ | 28 | $ | 161 | $ | 80 | ||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Operating revenue | $ 159 | $ 171 | $ 310 | $ 324 | $ | 127 | $ | 148 | $ | 437 | $ | 472 | ||||||||||||||||||||
Gain on sale of owned hotel | 23 | 23 | ||||||||||||||||||||||||||||||
Revenues related to reimbursable expenses | 27 | 30 | 56 | 60 | 29 | 19 | 85 | 79 | ||||||||||||||||||||||||
Total | 186 | 201 | 366 | 384 | 156 | 190 | 522 | 574 | ||||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||
Operating | 137 | 139 | 270 | 270 | 113 | 129 | 372 | 399 | ||||||||||||||||||||||||
Asset impairments at owned hotels | 22 | 11 | 22 | |||||||||||||||||||||||||||||
Reimbursable expenses | 27 | 30 | 56 | 60 | 29 | 19 | 85 | 79 | ||||||||||||||||||||||||
Depreciation | 15 | 16 | 31 | 33 | 14 | 16 | 45 | 49 | ||||||||||||||||||||||||
Equity income from joint ventures | (16 | ) | (16 | ) | (38 | ) | (38 | ) | (11 | ) | (17 | ) | (49 | ) | (55 | ) | ||||||||||||||||
Interest | 5 | 8 | 10 | 15 | 6 | 7 | 16 | 22 | ||||||||||||||||||||||||
Total | 168 | 177 | 329 | 340 | 151 | 176 | 480 | 516 | ||||||||||||||||||||||||
Income before income tax | 18 | 24 | 37 | 44 | 5 | 14 | 42 | 58 | ||||||||||||||||||||||||
Income tax expense | (6 | ) | (7 | ) | (12 | ) | (14 | ) | (2 | ) | (3 | ) | (14 | ) | (17 | ) | ||||||||||||||||
Net income attributable to Loews Corporation | $ 12 | $ 17 | $ 25 | $ 30 | $ | 3 | $ | 11 | $ | 28 | $ | 41 | ||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Net investment income | $ 33 | $ 42 | $ 117 | $ 56 | $ | 36 | $ | 5 | $ | 153 | $ | 61 | ||||||||||||||||||||
Other revenues | 223 | 217 | 439 | 430 | 250 | 223 | 689 | 653 | ||||||||||||||||||||||||
Total | 256 | 259 | 556 | 486 | 286 | 228 | 842 | 714 | ||||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||
Operating and other | 245 | 238 | 476 | 470 | 264 | 244 | 740 | 714 | ||||||||||||||||||||||||
Interest | 27 | 27 | 54 | 54 | 31 | 27 | 85 | 81 | ||||||||||||||||||||||||
Total | 272 | 265 | 530 | 524 | 295 | 271 | 825 | 795 | ||||||||||||||||||||||||
Income (loss) before income tax | (16 | ) | (6 | ) | 26 | (38 | ) | (9 | ) | (43 | ) | 17 | (81 | ) | ||||||||||||||||||
Income tax (expense) benefit | 3 | (5 | ) | 5 | 1 | 9 | (4 | ) | 14 | |||||||||||||||||||||||
Net income (loss) attributable to Loews Corporation | $ (13 | ) | $ (6 | ) | $ 21 | $ (33 | ) | $ | (8 | ) | $ | (34 | ) | $ | 13 | $ | (67 | ) | ||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Fixed income securities: | ||||||||||||||||||||||||||||||||
Taxable fixed income securities | $ 385 | $ 354 | $ 768 | $ 704 | $ | 383 | $ | 366 | $ | 1,151 | $ | 1,070 | ||||||||||||||||||||
Tax-exempt fixed income securities | 80 | 100 | 162 | 205 | 79 | 93 | 241 | 298 | ||||||||||||||||||||||||
Total fixed income securities | 465 | 454 | 930 | 909 | 462 | 459 | 1,392 | 1,368 | ||||||||||||||||||||||||
Limited partnership and common stock investments | 43 | 42 | 139 | 73 | 18 | 23 | 157 | 96 | ||||||||||||||||||||||||
Other, net of investment expense | 7 | 10 | 17 | 14 | 7 | 5 | 24 | 19 | ||||||||||||||||||||||||
Pretax net investment income | $ 515 | $ 506 | $ 1,086 | $ 996 | $ | 487 | $ | 487 | $ | 1,573 | $ | 1,483 | ||||||||||||||||||||
Fixed income securities after tax and noncontrolling interests | $ 341 | $ 335 | $ 681 | $ 672 | $ | 337 | $ | 338 | $ | 1,018 | $ | 1,010 | ||||||||||||||||||||
Net investment income after tax and noncontrolling interests | $ 376 | $ 372 | $ 791 | $ 734 | $ | 356 | $ | 357 | $ | 1,147 | $ | 1,091 | ||||||||||||||||||||
Effective income yield for the fixed income securities portfolio, before tax | 4.8 | % | 4.7 | % | 4.8 | % | 4.7 | % | 4.8 | % | 4.7 | % | 4.8 | % | 4.7 | % | ||||||||||||||||
Effective income yield for the fixed income securities portfolio, after tax | 3.9 | % | 3.9 | % | 3.9 | % | 3.9 | % | 3.9 | % | 3.9 | % | 3.9 | % | 3.9 | % | ||||||||||||||||
Limited partnership and common stock return | 2.1 | % | 1.8 | % | 6.8 | % | 3.0 | % | 0.9 | % | 0.9 | % | 7.7 | % | 4.0 | % |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Investment gains (losses): | ||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||
Corporate and other bonds | $ (7 | ) | $ 9 | $ (7 | ) | $ 28 | $ | 7 | $ | 8 | $ | 36 | ||||||||||||||||||||
States, municipalities and political subdivisions | 4 | 6 | 12 | 26 | 1 | 9 | $ | 13 | 35 | |||||||||||||||||||||||
Asset-backed | (11 | ) | (14 | ) | (32) | (5 | ) | (7 | ) | (19 | ) | (39 | ) | |||||||||||||||||||
Total fixed maturity securities | (3 | ) | 4 | (9 | ) | 22 | 3 | 10 | (6 | ) | 32 | |||||||||||||||||||||
Non-redeemable preferred stock | 11 | (10 | ) | 53 | (25) | 7 | 2 | 60 | (23 | ) | ||||||||||||||||||||||
Short term and other | (6 | ) | 3 | (11 | ) | 9 | (2 | ) | 3 | (13 | ) | 12 | ||||||||||||||||||||
Total investment gains (losses) | 2 | (3 | ) | 33 | 6 | |||||||||||||||||||||||||||
Income tax (expense) benefit | (1 | ) | 2 | (9 | ) | 1 | ||||||||||||||||||||||||||
Total investment gains | 8 | 15 | 41 | 21 | ||||||||||||||||||||||||||||
Income tax (expense) | (2 | ) | (3 | ) | (11 | ) | (2 | ) | ||||||||||||||||||||||||
Amounts attributable to noncontrolling interests | (2 | ) | (1) | (1 | ) | (1 | ) | (3 | ) | (2 | ) | |||||||||||||||||||||
Net investment gains (losses) attributable to Loews Corporation | $ 1 | $ (1 | ) | $ 22 | $ 6 | |||||||||||||||||||||||||||
Net investment gains attributable to Loews Corporation | $ | 5 | $ | 11 | $ | 27 | $ | 17 | ||||||||||||||||||||||||
June 30, 2019 | December 31, 2018 | September 30, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||
Estimated Fair Value | Net Unrealized Gains (Losses) | Estimated Fair Value | Net Unrealized Gains (Losses) | Estimated Fair Value | Net Unrealized Gains (Losses) | Estimated Fair Value | Net Unrealized Gains (Losses) | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
U.S. Government, Government agencies and Government-sponsored enterprises | $ 4,336 | $ 84 | $ 4,334 | $ (24) | $ | 4,432 | $ | 114 | $ | 4,334 | $ | (24 | ) | |||||||||||||||||||
AAA | 3,014 | 338 | 3,027 | 245 | 3,057 | 360 | 3,027 | 245 | ||||||||||||||||||||||||
AA | 6,697 | 775 | 6,510 | 512 | 6,731 | 860 | 6,510 | 512 | ||||||||||||||||||||||||
A | 8,843 | 961 | 8,768 | 527 | 9,040 | 1,112 | 8,768 | 527 | ||||||||||||||||||||||||
BBB | 15,984 | 1,374 | 14,205 | 274 | 16,718 | 1,670 | 14,205 | 274 | ||||||||||||||||||||||||
Non-investment grade | 2,765 | 84 | 2,702 | (73) | 2,481 | 85 | 2,702 | (73 | ) | |||||||||||||||||||||||
Total | $ 41,639 | $ 3,616 | $ 39,546 | $ 1,461 | $ | 42,459 | $ | 4,201 | $ | 39,546 | $ | 1,461 | ||||||||||||||||||||
June 30, 2019 | Estimated Fair Value | Gross Unrealized Losses | ||||||||||||||
September 30, 2019 | Estimated Fair Value | Gross Unrealized Losses | ||||||||||||||
(In millions) | ||||||||||||||||
U.S. Government, Government agencies and Government-sponsored enterprises | $ 256 | $ 1 | $ | 171 | $ | 1 | ||||||||||
AAA | 22 | 1 | 35 | 1 | ||||||||||||
AA | 52 | 29 | ||||||||||||||
A | 526 | 8 | 456 | 4 | ||||||||||||
BBB | 591 | 18 | 568 | 12 | ||||||||||||
Non-investment grade | 753 | 29 | 609 | 32 | ||||||||||||
Total | $ 2,200 | $ 57 | $ | 1,868 | $ | 50 | ||||||||||
June 30, 2019 | Estimated Fair Value | Gross Unrealized Losses | ||||||||||||||
September 30, 2019 | Estimated Fair Value | Gross Unrealized Losses | ||||||||||||||
(In millions) | ||||||||||||||||
Due in one year or less | $ 45 | $ 1 | $ | 27 | ||||||||||||
Due after one year through five years | 444 | 12 | 377 | $ | 12 | |||||||||||
Due after five years through ten years | 1,477 | 27 | 1,127 | 22 | ||||||||||||
Due after ten years | 234 | 17 | 337 | 16 | ||||||||||||
Total | $ 2,200 | $ 57 | $ | 1,868 | $ | 50 | ||||||||||
June 30, 2019 | December 31, 2018 | September 30, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||
Estimated Fair Value | Effective Duration (Years) | Estimated Fair Value | Effective Duration (Years) | Estimated Fair Value | Effective Duration (Years) | Estimated Fair Value | Effective Duration (Years) | |||||||||||||||||||||||||
(In millions of dollars) | ||||||||||||||||||||||||||||||||
Investments supporting Other Insurance Operations | $ | 17,541 | 8.9 | $ | 16,212 | 8.4 | $ | 18,003 | 9.0 | $ | 16,212 | 8.4 | ||||||||||||||||||||
Other investments | 26,253 | 4.1 | 25,428 | 4.4 | 26,655 | 4.1 | 25,428 | 4.4 | ||||||||||||||||||||||||
Total | $ | 43,794 | 6.0 | $ | 41,640 | 6.0 | $ | 44,658 | 6.0 | $ | 41,640 | 6.0 | ||||||||||||||||||||
June 30, 2019 | December 31, 2018 | September 30, 2019 | December 31, 2018 | |||||||||||||
(In millions ) | ||||||||||||||||
Short term investments: | ||||||||||||||||
Commercial paper | $ 920 | $ 705 | $ 1,004 | $ 705 | ||||||||||||
U.S. Treasury securities | 295 | 185 | 256 | 185 | ||||||||||||
Other | 304 | 396 | 234 | 396 | ||||||||||||
Total short term investments | $ 1,519 | $ 1,286 | $ 1,494 | $ 1,286 | ||||||||||||
Period | (a) Total number of shares purchased | (b) Average price paid per share | (c) Total number of shares purchased as part of publicly announced plans or programs | (d) Maximum number of shares (or approximate dollar value) of shares that may yet be purchased under the plans or programs (in millions) | ||||||||||||
April 1, 2019 - April 30, 2019 | 1,210,073 | $ | 49.40 | N/A | N/A | |||||||||||
May 1, 2019 - May 31, 2019 | 1,731,211 | 50.88 | N/A | N/A | ||||||||||||
June 1, 2019 - June 30, 2019 | 59,880 | 53.22 | N/A | N/A |
Period | (a) Total number of shares purchased | (b) Average price paid per share | (c) Total number of shares purchased as part of publicly announced plans or programs | (d) Maximum number of shares (or approximate dollar value) of shares that may yet be purchased under the plans or programs (in millions) | ||||||||||||
July 1, 2019 - July 31, 2019 | 341,240 | $ 54.18 | N/A | N/A | ||||||||||||
August 1, 2019 - August 31, 2019 | 1,620,985 | 48.55 | N/A | N/A | ||||||||||||
September 1, 2019 - September 30, 2019 | 1,431,981 | 49.78 | N/A | N/A |
Description of Exhibit | Exhibit Number Number | |||
XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | 101.INS * | |||
Inline XBRL Taxonomy Extension Schema | 101.SCH * | |||
Inline XBRL Taxonomy Extension Calculation Linkbase | 101.CAL * | |||
Inline XBRL Taxonomy Extension Definition Linkbase | 101.DEF * | |||
Inline XBRL Taxonomy Label Linkbase | 101.LAB * | |||
Inline XBRL Taxonomy Extension Presentation Linkbase | 101.PRE * | |||
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | 104* |
LOEWS CORPORATION | ||||
(Registrant) | ||||
Dated: | By: | /s/ David B. Edelson | ||
DAVID B. EDELSON | ||||
Senior Vice President and | ||||
Chief Financial Officer | ||||
(Duly authorized officer | ||||
and principal financial | ||||
officer) |