Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 18, 2019 | Jun. 30, 2018 | |
Document Documentand Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | CINCINNATI FINANCIAL CORP | ||
Entity Central Index Key | 20,286 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 162,937,899 | ||
Entity Public Float | $ 10,123,221,318 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Investments | ||
Fixed maturities, at fair value (amortized cost: 2018—$10,643; 2017—$10,314) | $ 10,689 | $ 10,699 |
Equity securities, at fair value (cost: 2018—$3,368; 2017—$3,094) | 5,920 | 6,249 |
Other invested assets | 123 | 103 |
Total investments | 16,732 | 17,051 |
Cash and cash equivalents | 784 | 657 |
Investment income receivable | 132 | 134 |
Finance receivable | 71 | 61 |
Premiums receivable | 1,644 | 1,589 |
Reinsurance recoverable | 484 | 432 |
Prepaid reinsurance premiums | 44 | 42 |
Deferred policy acquisition costs | 738 | 670 |
Land, building and equipment, net, for company use (accumulated depreciation: 2018—$265; 2017—$253) | 195 | 185 |
Other assets | 308 | 216 |
Separate accounts | 803 | 806 |
Total assets | 21,935 | 21,843 |
Insurance reserves | ||
Loss and loss expense reserves | 5,707 | 5,273 |
Life policy and investment contract reserves | 2,779 | 2,729 |
Unearned premiums | 2,516 | 2,404 |
Other liabilities | 804 | 792 |
Deferred income tax | 627 | 745 |
Note payable | 32 | 24 |
Long-term debt and capital lease obligations | 834 | 827 |
Separate accounts | 803 | 806 |
Total liabilities | 14,102 | 13,600 |
Commitments and contingent liabilities (Note 16) | 0 | 0 |
Shareholders' Equity | ||
Common stock, par value—$2 per share; (authorized: 2018 and 2017—500 million shares; issued: 2018 and 2017—198.3 million shares) | 397 | 397 |
Paid-in capital | 1,281 | 1,265 |
Retained earnings | 7,625 | 5,180 |
Accumulated other comprehensive income | 22 | 2,788 |
Treasury stock at cost (2018—35.5 million shares and 2017—34.4 million shares) | (1,492) | (1,387) |
Total shareholders' equity | 7,833 | 8,243 |
Total liabilities and shareholders' equity | $ 21,935 | $ 21,843 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, amortized cost | $ 10,643 | $ 10,314 |
Equity securities, cost | 3,368 | 3,094 |
Land, building and equipment, accumulated depreciation | $ 265 | $ 253 |
Common stock, par value | $ 2 | $ 2 |
common stock, authorized | 500 | 500 |
Common stock, issued | 198.3 | 198.3 |
Common stock, shares outstanding | 198.3 | 198.3 |
Treasury stock, shares | 35.5 | 34.4 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues | |||
Earned premiums | $ 5,170 | $ 4,954 | $ 4,710 |
Investment income, net of expenses | 619 | 609 | 595 |
Investment gains and losses, net | (402) | 148 | 124 |
Fee revenues | 15 | 16 | 15 |
Other revenues | 5 | 5 | 5 |
Total revenues | 5,407 | 5,732 | 5,449 |
Benefits and Expenses | |||
Insurance losses and contract holders' benefits | 3,490 | 3,390 | 3,107 |
Underwriting, acquisition and insurance expenses | 1,597 | 1,546 | 1,465 |
Interest expense | 53 | 53 | 53 |
Other operating expenses | 16 | 13 | 12 |
Total benefits and expenses | 5,156 | 5,002 | 4,637 |
Income Before Income Taxes | 251 | 730 | 812 |
Provision (Benefit) for Income Taxes | |||
Current | 11 | 129 | 183 |
Deferred | (47) | (444) | 38 |
Total provision (benefit) for income taxes | (36) | (315) | 221 |
Net Income | $ 287 | $ 1,045 | $ 591 |
Per Common Share | |||
Net income—basic (in usd per share) | $ 1.76 | $ 6.36 | $ 3.59 |
Net income—diluted (in usd per share) | $ 1.75 | $ 6.29 | $ 3.55 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 287 | $ 1,045 | $ 591 |
Other Comprehensive Income (Loss) | |||
Change in unrealized gains and losses on investments, net of tax (benefit) of $(72), $317 and $186, respectively | (267) | 598 | 345 |
Amortization of pension actuarial gains and losses and prior service cost, net of tax (benefit) of $(1), $7 and $6, respectively | (3) | 7 | 10 |
Change in life deferred acquisition costs, life policy reserves and other, net of tax (benefit) of $2, $1 and $(4), respectively | 7 | (2) | (6) |
Other comprehensive income (loss) | (263) | 603 | 349 |
Comprehensive Income | $ 24 | $ 1,648 | $ 940 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized gains on investments available-for-sale, net of tax | $ (72) | $ 317 | $ 186 |
Amortization of pension actuarial loss and prior service cost, net of tax | (1) | 7 | 6 |
Change in life deferred acquisition costs, life policy reserves and other, net of tax | $ 2 | $ 1 | $ (4) |
Consolidated Statements Of Shar
Consolidated Statements Of Shareholders' Equity - USD ($) shares in Thousands, $ in Millions | Total | Common Stock | Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Treasury Stock | New Accounting Pronouncement, Early Adoption, EffectRetained Earnings | New Accounting Pronouncement, Early Adoption, EffectAccumulated Other Comprehensive Income |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cumulative effect of change in accounting for equity securities as of January 1, 2018 | $ 0 | $ 0 | ||||||
Adjusted beginning of year | 4,762 | 1,344 | ||||||
Beginning Balance at Dec. 31, 2015 | $ 397 | $ 1,232 | 4,762 | 1,344 | $ (1,308) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Share-based awards | 0 | (8) | 36 | |||||
Share-based compensation | 23 | |||||||
Other | 5 | 5 | ||||||
Net Income | $ 591 | 591 | ||||||
Dividends declared | (316) | |||||||
Other comprehensive income (loss) | 349 | 349 | ||||||
Shares acquired - share repurchase authorization | (39) | |||||||
Shares acquired - share-based compensation plans | (13) | |||||||
Ending Balance at Dec. 31, 2016 | 7,060 | $ 397 | 1,252 | 5,037 | 1,693 | (1,319) | ||
Beginning Balance (in shares) at Dec. 31, 2015 | 163,900 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Share-based awards (in shares) | 1,000 | |||||||
Shares acquired—share repurchase authorization (in shares) | (500) | |||||||
Shares acquired - share-based compensation plans (in shares) | (200) | |||||||
Other (in shares) | 200 | |||||||
Ending Balance (in shares) at Dec. 31, 2016 | 164,400 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cumulative effect of change in accounting for equity securities as of January 1, 2018 | 0 | 0 | ||||||
Adjusted beginning of year | 5,037 | 1,693 | ||||||
Adjustment to reclassify certain tax effects from AOCI to retained earnings | Accounting Standards Update 2018-02 | $ 0 | $ 0 | ||||||
Share-based awards | $ 0 | (18) | 26 | |||||
Share-based compensation | 26 | |||||||
Other | 5 | 5 | ||||||
Net Income | 1,045 | 1,045 | ||||||
Dividends declared | (410) | |||||||
Other comprehensive income (loss) | 603 | 603 | ||||||
Shares acquired - share repurchase authorization | (92) | |||||||
Shares acquired - share-based compensation plans | (7) | |||||||
Ending Balance at Dec. 31, 2017 | $ 8,243 | $ 397 | 1,265 | 5,180 | 2,788 | (1,387) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Share-based awards (in shares) | 800 | |||||||
Shares acquired—share repurchase authorization (in shares) | (1,300) | |||||||
Shares acquired - share-based compensation plans (in shares) | (100) | |||||||
Other (in shares) | 100 | |||||||
Ending Balance (in shares) at Dec. 31, 2017 | 198,300 | 163,900 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cumulative effect of change in accounting for equity securities as of January 1, 2018 | 2,503 | (2,503) | ||||||
Adjusted beginning of year | 7,683 | 285 | ||||||
Adjustment to reclassify certain tax effects from AOCI to retained earnings | Accounting Standards Update 2018-02 | (492) | 492 | ||||||
Share-based awards | $ 0 | (17) | 21 | |||||
Share-based compensation | 28 | |||||||
Other | 5 | 4 | ||||||
Net Income | $ 287 | 287 | ||||||
Dividends declared | (345) | |||||||
Other comprehensive income (loss) | (263) | (263) | ||||||
Shares acquired - share repurchase authorization | (125) | |||||||
Shares acquired - share-based compensation plans | (5) | |||||||
Ending Balance at Dec. 31, 2018 | $ 7,833 | $ 397 | $ 1,281 | $ 7,625 | $ 22 | $ (1,492) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Share-based awards (in shares) | 384 | 700 | ||||||
Shares acquired—share repurchase authorization (in shares) | (1,800) | |||||||
Shares acquired - share-based compensation plans (in shares) | 0 | |||||||
Other (in shares) | 0 | |||||||
Ending Balance (in shares) at Dec. 31, 2018 | 198,300 | 162,800 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cumulative effect of change in accounting for equity securities as of January 1, 2018 | $ 2,503 | |||||||
Adjustment to reclassify certain tax effects from AOCI to retained earnings | Accounting Standards Update 2018-02 | $ 0 | $ 0 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash Flows From Operating Activities | |||
Net Income | $ 287 | $ 1,045 | $ 591 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 63 | 55 | 48 |
Investment gains and losses, net | 408 | (148) | (124) |
Share-based compensation | 28 | 26 | 23 |
Interest credited to contract holders' | 47 | 48 | 48 |
Deferred income tax expense | (47) | (444) | 38 |
Changes in: | |||
Investment income receivable | 2 | 0 | (5) |
Premiums and reinsurance receivable | (109) | 77 | (113) |
Deferred policy acquisition costs | (48) | (36) | (26) |
Other assets | (1) | (43) | 34 |
Loss and loss expense reserves | 434 | 188 | 367 |
Life policy and investment contract reserves | 96 | 96 | 102 |
Unearned premiums | 112 | 97 | 106 |
Other liabilities | 0 | 24 | 61 |
Current income tax receivable/payable | (91) | 67 | (35) |
Net cash provided by operating activities | 1,181 | 1,052 | 1,115 |
Cash Flows From Investing Activities | |||
Sale of fixed maturities | 36 | 23 | 15 |
Call or maturity of fixed maturities | 1,127 | 1,172 | 1,511 |
Sale of equity securities | 403 | 523 | 465 |
Purchase of fixed maturities | (1,510) | (1,723) | (1,994) |
Purchase of equity securities | (441) | (513) | (439) |
Investment in finance receivables | (33) | (32) | (17) |
Collection of finance receivables | 25 | 23 | 30 |
Investment in buildings and equipment | (20) | (16) | (13) |
Change in other invested assets, net | (38) | (15) | (14) |
Net cash used in investing activities | (451) | (558) | (456) |
Cash Flows From Financing Activities | |||
Payment of cash dividends to shareholders | (336) | (400) | (306) |
Shares acquired - share repurchase authorization | (125) | (92) | (39) |
Changes in note payable | 8 | 4 | (15) |
Proceeds from stock options exercised | 9 | 13 | 21 |
Contract holders' funds deposited | 84 | 79 | 95 |
Contract holders' funds withdrawn | (183) | (164) | (155) |
Excess tax benefits on share-based compensation | 0 | 0 | 5 |
Other | (60) | (54) | (32) |
Net cash used in financing activities | (603) | (614) | (426) |
Net change in cash and cash equivalents | 127 | (120) | 233 |
Cash and cash equivalents at beginning of year | 657 | 777 | 544 |
Cash and cash equivalents at end of year | 784 | 657 | 777 |
Supplemental Disclosures of Cash Flow Information | |||
Interest paid | 53 | 52 | 52 |
Income taxes paid | 98 | 60 | 213 |
Noncash Activities | |||
Conversion of securities | 0 | 5 | 4 |
Equipment acquired under capital lease obligations | 21 | 14 | 20 |
Cashless exercise of stock options | 5 | 7 | 13 |
Other assets and other liabilities | $ 48 | $ 75 | $ 53 |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | Summary of Significant Accounting Policies Nature of Operations Cincinnati Financial Corporation (CFC) operates through our insurance group and two complementary subsidiary companies. The Cincinnati Insurance Company leads our insurance group that also includes two subsidiaries: The Cincinnati Casualty Company and The Cincinnati Indemnity Company. This group markets a broad range of standard market commercial and personal policies. The group focuses on delivery of quality customer service to our select group of 1,757 independent insurance agencies with 2,344 reporting locations across 42 states. Other subsidiaries of The Cincinnati Insurance Company include The Cincinnati Life Insurance Company, which markets life insurance and fixed annuities, and The Cincinnati Specialty Underwriters Insurance Company, which offers excess and surplus lines property casualty insurance products. The Cincinnati Insurance Company also conducts the business of our reinsurance assumed operations, Cincinnati Re SM . The two CFC complementary subsidiaries are CSU Producer Resources Inc., which provides insurance brokerage services to our independent agencies so their clients can access our excess and surplus lines insurance products, and CFC Investment Company, which offers commercial leasing and financing services to our agents, their clients and other customers. Basis of Presentation Our consolidated financial statements include the accounts of the parent and its wholly owned subsidiaries and are presented in conformity with accounting principles generally accepted in the United States of America (GAAP). All intercompany balances and transactions have been eliminated in consolidation. The preparation of the consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect amounts reported in the consolidated financial statements and accompanying notes. Our actual results could differ from those estimates. Investments Our portfolio investments are primarily in publicly traded fixed-maturity and equity security investments. Fixed-maturity investments (taxable bonds, tax-exempt bonds, redeemable preferred equities and commercial mortgage- backed securities) classified as available for sale and equity investments (common and nonredeemable preferred equities) are recorded at fair value in the consolidated financial statements. Beginning January 1, 2018, changes in fair value of equity securities are now reported in net income instead of other comprehensive income as stated below under 'Adopted Accounting Updates'. The number of fixed-maturity securities with fair value below 100 percent of amortized cost can be expected to fluctuate as interest rates rise or fall. Because of our strong capital and long-term investment horizon, our general intent is to hold fixed-maturity investments until maturity, regardless of short-term fluctuations in fair values. Impairment charges for fixed maturities are recorded for other-than-temporary declines in value if fair value is below amortized cost and, in the asset impairment committee’s judgment, the fair value is not expected to be recouped within a designated recovery period. Our invested asset impairment policy also states that fixed maturities below their amortized cost that the company (1) intends to sell or (2) more likely than not will be required to sell before recovery of their amortized cost basis are deemed to be other-than-temporarily impaired (OTTI). The amortized cost of any such securities is reduced to fair value as the new cost basis, and a realized loss is recorded in the period in which it is recognized. When these two criteria are not met, and the company believes that full collection of interest and/or principal is not likely, we determine the net present value of future cash flows by using the effective interest rate implicit in the security at the date of acquisition as the discount rate and compare that amount with the amortized cost and fair value of the security. The difference between the net present value of the expected future cash flows and amortized cost of the security is considered a credit loss and recognized as a realized loss in the period in which it occurred. The difference between the fair value and the net present value of the cash flows of the security, the noncredit loss, is recognized in other comprehensive income as an unrealized loss. We had no fixed-maturity securities with a noncredit loss for the years ended 2018 , 2017 and 2016 . We include the noncredit portion of fixed-maturity OTTI charges and unrealized gains and losses on fixed-maturity investments, net of taxes, in shareholders’ equity as accumulated other comprehensive income (AOCI). Investment gains and losses are recognized in net income based on the trade date accounting method. Included within our other invested assets were $33 million and $31 million of life policy loans, $60 million and $35 million of private equity investments and $30 million and $37 million of real estate through direct property ownership and development projects in the United States at December 31, 2018 and 2017 , respectively. Life policy loans are carried at the receivable value. The private equity investments provide their financial statements to us and generally report investments on their balance sheets at fair value. We use the equity method of accounting for private equity and real estate development investments. Investment income, net of expenses, consists mainly of interest and dividends. We record interest on an accrual basis and record dividends at the ex-dividend date. We amortize premiums and discounts on fixed-maturity securities using the effective interest method over the expected life of the security. Fair Value Disclosures Fair value is defined as the exit price or the amount that would be (1) received to sell an asset or (2) paid to transfer a liability in an orderly transaction between marketplace participants at the measurement date. When determining an exit price, we rely upon observable market data whenever possible. We primarily base fair value for investments in equity and fixed-maturity securities (including redeemable preferred stock and assets held in separate accounts) on quoted market prices or on prices from the company’s nationally recognized pricing vendor, an outside resource that supplies global securities pricing, dividend, corporate action and descriptive information to support fund pricing, securities operations, research and portfolio management. The company obtains and reviews the pricing service’s valuation methodologies and related inputs and validates these prices by replicating a sample across each asset class using a discounted cash flow model. When a price is not available from these sources, as in the case of securities that are not publicly traded, we determine the fair value using various inputs including quotes from independent brokers. The fair value of investments not priced by the company’s nationally recognized pricing vendor is less than 1 percent of the fair value of our total investment portfolio. For the purpose of ASC 825 disclosure, we estimate the fair value of our long-term senior notes on market pricing of similar debt instruments that are actively trading. We estimate the fair value of our note payable on the year-end outstanding balance because it is short term and tied to a variable interest rate. We estimate the fair value of liabilities for investment contracts and annuities using discounted cash flow calculations across a wide range of economic interest rate scenarios with a provision for our nonperformance risk. We estimate the fair value for policyholder loans on insurance contracts using a discounted cash flow model. Determination of fair value for structured settlements assumes the discount rates used to calculate the present value of expected payments are the risk-free spot rates plus an A3 rated bond spread for financial issuers at December 31, 2018 , to account for nonperformance risk. See Note 3, Fair Value Measurements, for further details. Cash and Cash Equivalents Cash and cash equivalents are highly liquid instruments that include liquid debt instruments with original maturities of less than three months. These are carried at cost, which approximates fair value. Property Casualty Insurance The consolidated property casualty companies actively write property casualty insurance through independent agencies in 42 states. Our 10 largest states generated 58.4 percent and 59.7 percent of total earned premiums in 2018 and 2017 , respectively. Ohio, our largest state, accounted for 15.9 percent and 16.2 percent of total earned premiums in 2018 and 2017 , respectively. Illinois, Georgia, Indiana, North Carolina and Pennsylvania each accounted for between 5 percent and 6 percent of total earned premiums in 2018 . Our largest single agency relationship accounted for approximately 0.8 percent of our total property casualty earned premiums in 2018 . No aggregate agency relationship locations under a single ownership structure accounted for more than 4 percent of our total property casualty earned premiums in 2018 . We record revenues for installment charges as fee revenues in the consolidated statements of income. Property casualty written premiums are deferred and recorded as earned premiums on a pro rata basis over the terms of the policies. We record as unearned premiums the portion of written premiums that applies to unexpired policy terms. Expenses associated with successfully acquiring insurance policies – commissions, premium taxes and underwriting costs – are deferred and amortized over the terms of the policies. We assess recoverability of deferred acquisition costs at a level consistent with the way we acquire, service and manage insurance policies and measure profitability. We analyze our acquisition cost assumptions to reflect actual experience, and we evaluate potential premium deficiencies. Certain property casualty policies are not entered into policy underwriting systems as of the effective date of coverage. An estimate is recorded for these unprocessed written premiums. A large majority of the estimate is unearned and has no material impact on earned premiums. Premiums receivable are reviewed for impairment on a quarterly basis. We maintain an allowance for uncollectible premiums. We establish reserves to cover the expected cost of claims, losses and expenses related to investigating, processing and resolving claims. Although the appropriate amount of reserves is inherently uncertain, we base our decisions on past experience and current facts. Reserves are based on claims reported prior to the end of the year and estimates of unreported claims. We regularly review and update reserves using the most current information available. Any resulting adjustments are reflected in current calendar year insurance losses and policyholder benefits. We estimate that we may recover some of our costs through salvage and subrogation. Policyholder Dividends Certain workers’ compensation policies include the possibility of a policyholder earning a return of a portion of premium in the form of a policyholder dividend. The dividend generally is calculated by determining the profitability of a policy year along with the associated premium. We reserve for all probable future policyholder dividend payments. We record policyholder dividends as other underwriting expenses. Life Insurance We offer several types of life insurance and we account for each according to the duration of the contract. Short-duration life and health contracts are written to cover claims that arise during a short, fixed term of coverage. We generally have the right to change the amount of premium charged or cancel the coverage at the end of each contract term. We record premiums for short-duration life and health contracts similarly to property casualty contracts. Long-duration contracts are written to provide coverage for an extended period of time. Traditional long-duration contracts require policyholders to pay scheduled gross premiums, generally not less frequently than annually, over the term of the coverage. Premiums for these contracts, such as whole life insurance are recognized as revenue when due. Some traditional long-duration contracts, such as ten-pay whole life insurance, have premium payment periods shorter than the period over which coverage is provided. For these contracts, the excess of premium over the amount required to pay expenses and benefits is recognized over the term of the coverage rather than over the premium payment period. We establish a liability for traditional long-duration contracts as we receive premiums. The amount of this liability is the present value of future expenses and benefits less the present value of future net premiums. Net premium is the portion of gross premium required to provide for all expenses and benefits. We estimate future expenses and benefits and net premium using assumptions for expected expenses, mortality, morbidity, withdrawal rates and investment income. We include a provision for deviation, meaning we allow for some uncertainty in making our assumptions. We establish our assumptions when the contract is issued, and we generally maintain those assumptions for the life of the contract. We use both our own experience and industry experience, adjusted for historical trends, in arriving at our assumptions for expected mortality, morbidity and withdrawal rates. We use our own experience and historical trends for setting our assumption for expected expenses. We base our assumption for expected investment income on our own experience, adjusted for current and future economic conditions. We capitalize acquisition costs for traditional long-duration contracts. We charge these capitalized costs associated with successfully acquiring traditional long-duration contract insurance policies in proportion to premium revenue recognized. We use the same assumptions used in establishing the liability for the contract. We update our acquisition cost assumptions periodically to reflect actual experience, and we evaluate our deferred acquisition costs for recoverability. Universal life contracts are long-duration contracts for which contractual provisions are not fixed, unlike whole life insurance. Universal life contracts allow policyholders to vary the amount of premium, within limits, without our consent. However, we may vary the mortality, expense charges and the interest crediting rate, within limits, used to accumulate policy values. We do not record universal life premiums as revenue. Instead we recognize as revenue the mortality charges, administration charges and surrender charges when received. Some of our universal life contracts assess administration charges in the early years of the contract that are compensation for services we will provide in the later years of the contract. These administration charges are deferred and are recognized over the period when we provide those future services. We maintain a policy reserve liability equal to the policyholder account value. There is no provision for adverse deviation. Some of our universal life policies contain no-lapse guarantee provisions. For these policies, we establish a reserve in addition to the account balance, based on expected no-lapse guarantee benefits and expected policy assessments. We capitalize acquisition costs associated with successfully acquiring universal life long-duration contracts. We charge these capitalized costs to expenses over the term of coverage of the contract in accordance with the recognition of gross profit from the contract. When we charge deferred policy acquisition costs to expenses, we use assumptions based on our best estimates of long-term experience. We review and modify these assumptions on a regular basis. Separate Accounts We have issued universal life contracts with guaranteed minimum returns, referred to as bank-owned life insurance contracts (BOLIs). A BOLI is designed so the bank is the policy owner and the policy beneficiary. We legally segregate and record as separate accounts the assets and liabilities for some of our BOLIs, based on the specific contract provisions. We guarantee minimum investment returns, account values and death benefits for our separate account BOLIs. Our other BOLIs are general account products. We carry the assets of separate account BOLIs at fair value. The liabilities on separate account BOLIs primarily are the contract holders’ claims to the related assets and are carried at an amount equal to the contract holders’ account value. At December 31, 2018 , the current fair value of the contract holders’ account value exceeded the current fair value of the BOLI invested assets and cash by approximately $3 million . At December 31, 2017, the current fair value of the BOLI invested assets and cash exceeded the current fair value of the contract holders' account value by approximately $29 million . If the BOLI projected fair value were to fall below the value we guaranteed, a liability would be established with a corresponding charge to the company’s earnings. Generally, investment income and investment gains and losses of the separate accounts accrue directly to the contract holder, and we do not include them in the consolidated statements of income. Revenues and expenses related to separate accounts consist of contractual fees and mortality, surrender and expense risk charges. Also, each separate account BOLI includes a negotiated capital gain and loss sharing arrangement between the company and the bank. A percentage of each separate account’s investment gain and loss representing contract fees and assessments accrues to us and is transferred from the separate account to our general account and is recognized as revenue or expense. We record as revenues separate account investment management fees in fee revenues of the consolidated statements of income. Reinsurance The Cincinnati Insurance Company offers reinsurance assumed for casualty and specialty (predominantly domestic exposure) and property (worldwide exposure). Treaties are written on a pro rata and excess of loss basis. We also continue to assume risk with limited exposure as a reinsurer for involuntary state pools. Written premium is recorded, net of contract specific retrocessions, on an ultimate estimate basis and earned on a pro rata basis over the coverage period of the treaty. Expenses are recorded as per contract terms and deferred over the earning period of the premium. We establish known loss reserves when reported. We establish reserves for losses in excess of reported activity in the form of IBNR. Reserves are established using actuarial analysis, which includes models and methods traditionally used for the types of exposures written. We establish reserves for event specific occurrences using modeling data and company specific data when available. We enter into other reinsurance transactions to reduce risk and uncertainty by buying property casualty reinsurance and retrocessional reinsurance as well as life reinsurance. Reinsurance and retrocessional reinsurance contracts do not relieve us from our obligation to policyholders, but rather help protect our financial strength to perform that duty. All of these ceded reinsurance contracts transfer the economic risk of loss. Premiums that we cede are deferred and recorded as earned premiums on a pro rata basis over the terms of the contracts. We estimate loss amounts recoverable from our reinsurers based on the reinsurance policy terms. Historically, our claims with reinsurers have been paid. We establish an insignificant allowance for uncollectible reinsurance. Income Taxes We calculate deferred income tax liabilities and assets using tax rates in effect when temporary differences in the consolidated financial statement income and taxable income are expected to reverse. We recognize deferred income taxes for numerous temporary differences between our taxable income and consolidated financial statement income and other changes in shareholders’ equity. Such temporary differences relate primarily to unrealized gains and losses on investments and differences in the recognition of deferred acquisition costs, unearned premiums, insurance reserves and basis differences in the carrying value of investments held. We charge deferred income taxes associated with balances that impact other comprehensive income, such as unrealized appreciation and depreciation of fixed-maturity investments, to shareholders’ equity in accumulated other comprehensive income (AOCI). We charge deferred taxes associated with other differences to income. See Note 11, Income Taxes, for further detail on our uncertain tax positions and other income tax items. Although no Internal Revenue Service (IRS) penalties currently are accrued, if incurred, they would be recognized as a component of income tax expense. Earnings per Share Net income per common share is based on the weighted average number of common shares outstanding during each of the respective years. We calculate net income per common share (diluted) assuming the exercise or conversion of share‑based awards using the treasury stock method. Land, Building and Equipment We record land at cost, and record building and equipment at cost less accumulated depreciation. Equipment held under capital leases also is classified as property and equipment with the related lease obligations recorded as liabilities. We capitalize and amortize costs for internally developed computer software during the application development stage. These costs generally consist of external consulting, internal payroll and payroll-related costs. Our depreciation is based on estimated useful lives (ranging from three years to 39.5 years ) using straight-line and accelerated methods. Depreciation expense was $31 million for 2018 , $28 million for 2017 and $30 million for 2016 . We review our accumulated depreciation for our building, equipment and software assets and write off fully depreciated assets for obsolesce and nonuse. We monitor land, building and equipment and software assets for potential impairments. Potential impairments may include a significant decrease in the fair values of the assets, considerable cost overruns on projects, a change in legal factors or business climate or other factors that indicate that the carrying amount may not be recoverable or useful. There were no recorded land, building and equipment impairments for 2018 , 2017 or 2016 . Finance Receivables Our leasing subsidiary provides auto and equipment direct financing (leases and loans) to commercial and individual clients. We generally transfer ownership of the property to the client as the terms of the leases expire. Our lease contracts contain bargain purchase options. We account for these leases and loans as direct financing-type leases. We capitalize and amortize lease or loan origination costs over the life of the financing, using the effective interest method. These costs may include, but are not limited to finder fees, broker fees, filing fees and the cost of credit reports. We record income as other revenues over the financing term using the effective interest method in the consolidated statements of income. Finance receivables are reviewed for impairment and are insignificant to our consolidated financial position, results of operations and cash flows. Employee Benefit Pension Plan We sponsor a defined benefit pension plan that was modified during 2008. We closed entry into the pension plan, and only participants 40 years of age or older could elect to remain in the plan. Our pension expense is based on certain actuarial assumptions and also is composed of several components that are determined using the projected unit credit actuarial cost method. Refer to Note 13, Employee Retirement Benefits, for more information about our defined benefit pension plan. Share-Based Compensation We grant qualified and nonqualified share-based compensation under authorized plans. The stock options generally vest on a graded scale over three years following the date of grant and are exercisable over 10 -year periods. We grant service-based restricted stock units that cliff vest three years after the date of grant as well as service-based restricted stock units that vest ratably over the three -year vesting term. We also grant performance-based restricted stock units that vest if certain market conditions are attained. In 2018 , the CFC compensation committee approved share-based awards including incentive stock options, nonqualified stock options, service-based restricted and performance-based restricted stock units. See Note 17, Share-Based Associate Compensation Plans, for further details. Subsequent Events Related to the pending acquisition of MSP Underwriting Limited, on January 3, 2019, the company entered into a foreign exchange forward contract, which provides for an economic hedge between the agreed upon purchase price in GBP and currency fluctuations between the U.S. dollar and GBP during the period from that date through February 28, 2019. The acquisition is expected to close during the first quarter of 2019. There were no subsequent events requiring adjustment to the consolidated financial statements and, with the exception of the above disclosure, no additional disclosures were required in the notes to our consolidated financial statements. Adopted Accounting Updates ASU 2014-09 Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers . ASU 2014-09 requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. Insurance contracts do not fall within the scope of this ASU. The effective date of ASU 2014-09 was for interim and annual reporting periods beginning after December 15, 2017. The company adopted this ASU effective January 1, 2018, and it did not have a material impact on the company's consolidated financial position, cash flows or results of operations. ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 revised the accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. The effective date of ASU 2016-01 was for interim and annual reporting periods beginning after December 15, 2017. The company adopted this ASU on January 1, 2018, and applied it on a modified retrospective basis without prior period amounts restated. As a result of the adoption, $2.503 billion of after-tax unrealized gains on equity securities was reclassified on January 1, 2018, from accumulated other comprehensive income to retained earnings. Results of operations were impacted as changes in fair value of equity securities are now reported in net income instead of reported in other comprehensive income. As a result of the adoption of this ASU, for the year ended December 31, 2018, the net investment loss of $402 million in the consolidated statements of income included a decrease of $404 million from the fair value change of equity securities. ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . ASU 2016-15 addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The effective date of ASU 2016-15 is for interim and annual reporting periods beginning after December 15, 2017. The company adopted this ASU effective January 1, 2018, and it did not have a material impact on the company's consolidated financial position, cash flows, results of operations or disclosures. ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Postretirement Benefit Costs . ASU 2017-07 provides guidance on how to present the components of net periodic benefit costs in the income statement for pension plans and other post-retirement benefit plans and allows only the service cost component of net benefit cost to be eligible for capitalization when applicable. The effective date of ASU 2017-07 is for interim and annual reporting periods beginning after December 15, 2017. The company adopted this ASU effective January 1, 2018, and disclosed the line items used in the statements of income to present the service and non-service components of net periodic benefit costs in Note 13, Employee Retirement Benefits, to these consolidated financial statements. The adoption did not have a material impact on our company's consolidated financial position, cash flows or results of operations. ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting. ASU 2017-09 clarifies when to account for a change to the terms or conditions of a share based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. The effective date of ASU 2017-09 was for interim and annual reporting periods, beginning after December 15, 2017, and was applied prospectively. The company adopted this ASU effective January 1, 2018, and it did not have a material impact on our company's consolidated financial position, cash flows or results of operations. Pending Accounting Updates ASU 2016-02, Leases (Topic 842) In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The main provision of ASU 2016-02 requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. The effective date of ASU 2016-02 is for interim and annual reporting periods beginning after December 15, 2018, and will be applied prospectively. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842 and ASU 2018-11, Targeted Improvements to Topic 842. ASU 2018-10 makes narrow-scope amendments to certain aspects of the new leasing standard while ASU 2018-11 provides relief from costs of implementing certain aspects of the new leasing standard. These ASU's have not yet been adopted and will not have a material impact on our company's consolidated financial position, cash flows or results of operations. ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . ASU 2016-13 amends previous guidance on the impairment of financial instruments by adding an impairment model that allows an entity to recognize expected credit losses as an allowance rather than impairing as they are incurred. The new guidance is intended to reduce complexity of credit impairment models and result in a more timely recognition of expected credit losses. The effective date of ASU 2016-13 is for interim and annual reporting periods beginning after December 15, 2019. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326. ASU 2018-19 makes narrow-scope amendments to certain aspects of the credit losses standard. These ASU's have not yet been adopted. Management is currently evaluating the impact on our company's consolidated financial position, cash flows and results of operations. ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities In March 2017, the FASB issued ASU 2017-08, Receivables - Nonrefundable Fee |
Investments
Investments | 12 Months Ended |
Dec. 31, 2018 | |
Investments [Abstract] | |
Investments | Investments On January 1, 2018, we adopted ASU 2016-01, which resulted in changes in the fair value of equity securities still held being reported in net income instead of being reported in other comprehensive income. See Note 1, Summary of Significant Accounting Policies, for additional discussion. The following table provides cost or amortized cost, gross unrealized gains, gross unrealized losses and fair value for our fixed-maturity and equity securities: (Dollars in millions) Cost or amortized cost Gross unrealized Fair At December 31, 2018 gains losses Fixed-maturity securities: Corporate $ 5,712 $ 85 $ 87 $ 5,710 States, municipalities and political subdivisions 4,251 84 31 4,304 Commercial mortgage-backed 287 3 2 288 Government-sponsored enterprises 316 1 7 310 United States government 67 1 1 67 Foreign government 10 — — 10 Total $ 10,643 $ 174 $ 128 $ 10,689 At December 31, 2017 Fixed-maturity securities: Corporate $ 5,420 $ 246 $ 13 $ 5,653 States, municipalities and political subdivisions 4,316 155 6 4,465 Commercial mortgage-backed 280 7 1 286 Government-sponsored enterprises 257 1 4 254 United States government 31 — — 31 Foreign government 10 — — 10 Subtotal 10,314 409 24 10,699 Equity securities: Common equities 2,918 3,135 14 6,039 Nonredeemable preferred equities 176 34 — 210 Subtotal 3,094 3,169 14 6,249 Total $ 13,408 $ 3,578 $ 38 $ 16,948 The net unrealized investment gains in our fixed-maturity portfolio at December 31, 2018 , are primarily the result of the continued low interest rate environment that increased the fair value of our fixed-maturity portfolio. Our commercial mortgage-backed securities had an average rating of Aa1/AA at December 31, 2018 and 2017 . At December 31, 2018 , Microsoft Corporation (Nasdaq:MSFT) was our largest single equity holding with a fair value of $255 million , which was 4.4 percent of our publicly traded common equities portfolio and 1.5 percent of the total investment portfolio. The table below provides fair values and unrealized losses by investment category and by the duration of the securities’ continuous unrealized loss positions: (Dollars in millions) Less than 12 months 12 months or more Total At December 31, 2018 Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Fixed-maturity securities: Corporate $ 2,082 $ 51 $ 501 $ 36 $ 2,583 $ 87 States, municipalities and political subdivisions 823 18 340 13 1,163 31 Commercial mortgage-backed 77 — 64 2 141 2 Government-sponsored enterprises 49 1 211 6 260 7 United States government — — 33 1 33 1 Total $ 3,031 $ 70 $ 1,149 $ 58 $ 4,180 $ 128 At December 31, 2017 Fixed-maturity securities: Corporate $ 330 $ 4 $ 252 $ 9 $ 582 $ 13 States, municipalities and political subdivisions 88 1 264 5 352 6 Commercial mortgage-backed 33 — 36 1 69 1 Government-sponsored enterprises 96 1 124 3 220 4 Foreign government 10 — — — 10 — United States government 23 — 6 — 29 — Subtotal 580 6 682 18 1,262 24 Equity securities: Common equities 229 14 — — 229 14 Subtotal 229 14 — — 229 14 Total $ 809 $ 20 $ 682 $ 18 $ 1,491 $ 38 Contractual maturity dates for fixed-maturity investments were: (Dollars in millions) Amortized cost Fair value % of fair value At December 31, 2018 Maturity dates: Due in one year or less $ 586 $ 592 5.5 % Due after one year through five years 2,894 2,912 27.3 Due after five years through ten years 3,663 3,653 34.2 Due after ten years 3,500 3,532 33.0 Total $ 10,643 $ 10,689 100.0 % Actual maturities may differ from contractual maturities when there is a right to call or prepay obligations with or without call or prepayment penalties. At December 31, 2018 and 2017 , the company had fixed-maturity investments with a fair value of $112 million and $101 million , respectively, on deposit with various states in compliance with regulatory requirements. In addition, cash and fixed-maturity investments deposited with third parties used as collateral to secure liabilities on behalf of insureds, cedants and other creditors had a fair value of $75 million and $57 million at December 31, 2018 and 2017 , respectively. In the normal course of investing activities, the company enters into investments in limited partnerships, including private equity and real estate investments, and asset-backed securities issued by third-parties. The company’s maximum exposure to loss with respect to these investments is limited to the investment carrying values included in the company’s consolidated balance sheets and any unfunded commitments. The following table provides investment income and investment gains and losses: (Dollars in millions) Years ended December 31, 2018 2017 2016 Investment income: Interest $ 445 $ 445 $ 440 Dividends 181 170 161 Other 5 4 3 Total 631 619 604 Less investment expenses 12 10 9 Total $ 619 $ 609 $ 595 Investment gains and losses, net: Equity securities: Investment gains and losses on securities sold, net $ 9 $ — $ — Unrealized gains and losses on securities still held, net (404 ) — — Gross realized gains — 195 152 Gross realized losses — (72 ) (53 ) Other-than-temporary impairments — (3 ) — Subtotal (395 ) 120 99 Fixed maturities: Gross realized gains 12 25 26 Gross realized losses (2 ) — (1 ) Other-than-temporary impairments (5 ) (6 ) (2 ) Subtotal 5 19 23 Other (12 ) 9 2 Total (402 ) 148 124 For the years ended December 31, 2018 , 2017 and 2016 , there were no credit losses on fixed-maturity securities for which a portion of OTTI has been recognized in other comprehensive income. During 2018 , we other-than-temporarily impaired one security. At December 31, 2018 , 400 fixed-maturity investments with a total unrealized loss of $58 million had been in an unrealized loss position for 12 months or more. Of that total, no fixed-maturity investments had fair values below 70 percent of amortized cost. During 2017 , we other-than-temporarily impaired six securities. At December 31, 2017 , 249 fixed-maturity investments with a total unrealized loss of $18 million had been in an unrealized loss position for 12 months or more. Of that total, no fixed-maturity investments had fair values below 70 percent of amortized cost. There were no equity security investments in an unrealized loss position for 12 months or more as of December 31, 2017 . During 2016 , we other-than-temporarily impaired four securities. At December 31, 2016 , 32 fixed-maturity investments with a total unrealized loss of $11 million had been in an unrealized loss position for 12 months or more. Of that total, no fixed-maturity investments had fair values below 70 percent of amortized cost. There were no equity security investments in an unrealized loss position for 12 months or more as of December 31, 2016 . |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair Value Hierarchy The fair value hierarchy gives the highest priority to quoted prices with readily available independent data in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable market inputs (Level 3). When various inputs for measurement fall within different levels of the fair value hierarchy, the lowest observable input that has a significant impact on fair value measurement is used. Our valuation techniques have not changed from those used at December 31, 2017 , and ultimately management determines fair value. Financial instruments reported at fair value in our consolidated financial statements are categorized based upon the following characteristics or inputs to the valuation techniques: • Level 1 – Financial assets and liabilities for which inputs are observable and are obtained from reliable quoted prices for identical assets or liabilities in active markets. This is the most reliable fair value measurement and includes, for example, active exchange-traded equity securities. • Level 2 – Financial assets and liabilities for which values are based on quoted prices in markets that are not active or for which values are based on similar assets and liabilities that are actively traded. This also includes pricing models for which the inputs are corroborated by market data. The technique used for the Level 2 fixed-maturity securities and taxable fixed maturities in separate accounts is the application of market based modeling. The inputs used for all classes of fixed-maturity securities listed in the table below include relevant market information by asset class, trade activity of like securities, marketplace quotes, benchmark yields, spreads off benchmark yields, interest rates, U.S. Treasury or swap curves, yield to maturity and economic events. Specific to commercial mortgage-backed securities, key inputs also include prepayment and default projections based on past performance of the underlying collateral and current market data. All of the Level 2 fixed-maturity securities are priced by a nationally recognized pricing vendor. The Level 2 nonredeemable preferred equities technique used is the application of market based modeling. The inputs used, similar to those used by the pricing vendor for our fixed-maturity securities, include relevant market information, trade activity of like securities, yield to maturity, corporate action notices and economic events. All of the Level 2 nonredeemable preferred equities are priced by a nationally recognized pricing vendor. • Level 3 – Financial assets and liabilities for which values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Level 3 inputs include the following: ◦ Quotes from brokers or other external sources that are not considered binding; ◦ Quotes from brokers or other external sources where it cannot be determined that market participants would in fact transact for the asset or liability at the quoted price; or ◦ Quotes from brokers or other external sources where the inputs are not deemed observable. The following tables illustrate the fair value hierarchy for those assets measured at fair value on a recurring basis at December 31, 2018 and 2017 . We do not have any liabilities carried at fair value. There were no transfers between Level 1 and Level 2. (Dollars in millions) Quoted prices in active markets for Significant unobservable At December 31, 2018 Significant other observable inputs (Level 2) Total Fixed maturities, available for sale: Corporate $ — $ 5,709 $ 1 $ 5,710 States, municipalities and political subdivisions — 4,300 4 4,304 Commercial mortgage-backed — 288 — 288 Government-sponsored enterprises — 310 — 310 United States Government 67 — — 67 Foreign government — 10 — 10 Subtotal 67 10,617 5 10,689 Common equities 5,742 — — 5,742 Nonredeemable preferred equities — 178 — 178 Separate accounts taxable fixed maturities — 791 — 791 Top Hat savings plan mutual funds and common equity (included in Other assets) 34 — — 34 Total $ 5,843 $ 11,586 $ 5 $ 17,434 At December 31, 2017 Fixed maturities, available for sale: Corporate $ — $ 5,652 $ 1 $ 5,653 States, municipalities and political subdivisions — 4,460 5 4,465 Commercial mortgage-backed — 286 — 286 Government-sponsored enterprises — 254 — 254 United States Government 31 — — 31 Foreign government — 10 — 10 Subtotal 31 10,662 6 10,699 Common equities, available for sale 6,039 — — 6,039 Nonredeemable preferred equities, available for sale — 210 — 210 Separate accounts taxable fixed maturities — 795 — 795 Top Hat savings plan mutual funds and common equity (included in Other assets) 31 — — 31 Total $ 6,101 $ 11,667 $ 6 $ 17,774 Each financial instrument that was deemed to have significant unobservable inputs when determining valuation is identified in the following tables by security type with a summary of changes in fair value for the years ended December 31, 2018 and 2017 . Total Level 3 assets continue to be less than 1 percent of financial assets measured at fair value in the consolidated balance sheets. Assets presented in the table below were valued based primarily on broker/dealer quotes for which there is a lack of transparency as to inputs used to develop the valuations. Transfers into Level 3 included situations where a fair value quote was not provided by the company's nationally recognized pricing vendor and as a result the price was stale or had been replaced with a broker quote where the inputs had not been corroborated to be market observable resulting in the security being classified as Level 3. Transfers out of Level 3 included situations where a broker quote was used without observable inputs or data that could not be corroborated by our pricing vendors in the prior period and significant observable inputs were identified in the current period. The following table provides the change in Level 3 assets during 2018 and 2017 : (Dollars in millions) Asset fair value measurements using significant unobservable inputs Corporate fixed maturities States, municipalities and political subdivisions fixed maturities Total Beginning balance, January 1, 2018 $ 1 $ 5 $ 6 Total gains or losses (realized/unrealized): Included in net income — — — Included in other comprehensive income — (1 ) (1 ) Purchases — — — Sales — — — Transfers into Level 3 — — — Transfers out of Level 3 — — — Ending balance, December 31, 2018 $ 1 $ 4 $ 5 Beginning balance, January 1, 2017 $ 78 $ — $ 78 Total gains or losses (realized/unrealized): Included in net income — — — Included in other comprehensive income — — — Purchases — 5 5 Sales — — — Transfers into Level 3 — — — Transfers out of Level 3 (77 ) — (77 ) Ending balance, December 31, 2017 $ 1 $ 5 $ 6 With the exception of the above table, additional disclosures for the Level 3 category are not material, and therefore not provided. Fair Value Disclosure for Assets and Liabilities Not Carried at Fair Value The disclosures below are presented to provide information about the effects of current market conditions on financial instruments that are not reported at fair value in our consolidated financial statements. The following table shows fair values of our note payable and long-term debt: (Dollars in millions) Quoted prices in active markets for Significant other Significant unobservable inputs (Level 3) Total At December 31, 2018 Note payable $ — $ 32 $ — $ 32 6.900% senior debentures, due 2028 — 32 — 32 6.920% senior debentures, due 2028 — 471 — 471 6.125% senior notes, due 2034 — 440 — 440 Total $ — $ 975 $ — $ 975 At December 31, 2017 Note payable $ — $ 24 $ — $ 24 6.900% senior debentures, due 2028 — 34 — 34 6.920% senior debentures, due 2028 — 505 — 505 6.125% senior notes, due 2034 — 477 — 477 Total $ — $ 1,040 $ — $ 1,040 Fair value of the note payable was determined based upon the outstanding balance at December 31, 2018 and 2017 , because it is short term and tied to a variable interest rate. Fair value of the long-term debt was determined under the fair value measurements and disclosure accounting rules based on market pricing of similar debt instruments that are actively trading. We determine fair value for our debt the same way that we value corporate fixed maturities in our investment portfolio. Fair value can vary with macroeconomic conditions. Regardless of the fluctuations in fair value, the outstanding principal amount of our long-term debt is $793 million at both December 31, 2018 and 2017 . None of the long-term debt is encumbered by rating triggers. The note payable and long-term debt were classified as Level 2 as an active market does not exist, but fair value is determined based on observable inputs. The following table shows the fair value of our life policy loans, included in other invested assets: (Dollars in millions) Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Total At December 31, 2018 Life policy loans $ — $ — $ 40 $ 40 At December 31, 2017 Life policy loans $ — $ — $ 41 $ 41 Outstanding principal and interest for these life policy loans totaled $33 million and $31 million at December 31, 2018 and 2017 , respectively. To determine the fair value, we make the following significant assumptions: (1) the discount rates used to calculate the present value of expected payments are the risk-free spot rates, as nonperformance risk is minimal; and (2) the loan repayment rate by which policyholders pay off their loan balances is in line with past experience. The following table shows fair value of our deferred annuities and structured settlements included in life policy and investment contract reserves: (Dollars in millions) Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Total At December 31, 2018 Deferred annuities $ — $ — $ 742 $ 742 Structured settlements — 185 — 185 Total $ — $ 185 $ 742 $ 927 At December 31, 2017 Deferred annuities $ — $ — $ 834 $ 834 Structured settlements — 210 — 210 Total $ — $ 210 $ 834 $ 1,044 Recorded reserves for the deferred annuities were $787 million and $835 million at December 31, 2018 and 2017 , respectively. Recorded reserves for the structured settlements were $156 million and $161 million at December 31, 2018 and 2017 , respectively. Fair values for deferred annuities were calculated based upon internally developed models because active markets and observable inputs do not exist. To determine the fair value, we made the following significant assumptions: (1) the discount rates used to calculate the present value of expected payments are the risk-free spot rates plus an A3 rated bond spread for financial issuers at December 31, 2018 and 2017 , to account for nonperformance risk; (2) the rate of interest credited to policyholders is the portfolio net earned interest rate less a spread for expenses and profit; and (3) additional lapses occur when the credited interest rate is exceeded by an assumed competitor credited rate, which is a function of the risk-free rate of the economic scenario being modeled. Fair values for structured settlements were calculated based on internally developed models which assume the discount rates used to calculate the present value of expected payments are the risk-free spot rates plus an A3 rated bond spread for financial issuers at December 31, 2018 and 2017 , to account for nonperformance risk. The structured settlements were classified as Level 2 as an active market does not exist, but fair value is based on observable inputs. |
Property Casualty Loss And Loss
Property Casualty Loss And Loss Expenses | 12 Months Ended |
Dec. 31, 2018 | |
Insurance [Abstract] | |
Property Casualty Loss And Loss Expenses | Property Casualty Loss and Loss Expenses We use actuarial methods, models and judgment to estimate, as of a financial statement date, the property casualty loss and loss expense reserves required to pay for and settle all outstanding insured claims, including incurred but not reported (IBNR) claims, as of that date. The actuarial estimate is subject to review and adjustment by an inter-departmental committee that includes actuarial, claims, underwriting, loss prevention and accounting management. This committee is familiar with relevant company and industry business, claims and underwriting trends, as well as general economic and legal trends that could affect future loss and loss expense payments. The amount we will actually have to pay for claims can be highly uncertain. This uncertainty, together with the size of our reserves, makes the loss and loss expense reserves our most significant estimate. Our reserving process takes into account known facts and interpretations of circumstances and factors including the type of claim, policy provisions pertaining to each claim, potential subrogation or salvage recoverable, large loss activity and trends, new business activity, judicial decisions, economic conditions, changes in law and regulation and product and underwriting changes. There have been no significant changes in methodologies and assumptions used in calculating loss and loss expense reserves for all years presented. There were no material additional premiums or return premiums accrued for as a result of prior-year effects. Our field claims representatives establish case reserves when claims are reported to provide for our unpaid loss and loss expense obligation associated with individual claims. For events designated as natural catastrophes resulting in losses incurred related to direct premiums, we calculate IBNR reserves directly as a result of an estimated claim counts and estimated average dollar amount per claim for each event. Once individual case reserves are established for a catastrophe event, we reduce the IBNR reserves. Our actuarial staff uses generally accepted actuarial methods and models to derive ultimate loss and IBNR reserve estimates. The time interval between a claims occurrence and its settlement is one of the crucial attributes when estimating ultimate losses and IBNR reserves. Due to the uncertainties inherent with loss reserves, our ultimate loss experience could prove better or worse than what our carried reserves reflect. To the extent that reserves are inadequate and are required to be increased, the amount of the increase is a charge in that period, raising our loss and loss expense ratio and reducing earnings. To the extent that reserves are redundant and are required to be released, the amount of the release is a credit in that period, reducing our loss and loss expense ratio and increasing earnings. This table summarizes activity for our consolidated property casualty loss and loss expense reserves: (Dollars in millions) Years ended December 31, 2018 2017 2016 Gross loss and loss expense reserves, January 1 $ 5,219 $ 5,035 $ 4,660 Less reinsurance recoverable 187 298 281 Net loss and loss expense reserves, January 1 5,032 4,737 4,379 Net incurred loss and loss expenses related to: Current accident year 3,390 3,257 3,029 Prior accident years (167 ) (119 ) (168 ) Total incurred 3,223 3,138 2,861 Net paid loss and loss expenses related to: Current accident year 1,391 1,404 1,260 Prior accident years 1,456 1,439 1,243 Total paid 2,847 2,843 2,503 Net loss and loss expense reserves, December 31 5,408 5,032 4,737 Plus reinsurance recoverable 238 187 298 Gross loss and loss expense reserves, December 31 $ 5,646 $ 5,219 $ 5,035 In 2018 , 2017 and 2016 , the reserve for loss and loss expense in the consolidated balance sheets also included $61 million , $54 million and $50 million , respectively, for certain life and health loss and loss expense reserves. Additional disclosures for reserves related to these health claims are not material and therefore not provided. During 2018 , we experienced $167 million of favorable development on prior accident years including $157 million of favorable development in commercial lines, $13 million of adverse development in personal lines, $24 million of favorable development in excess and surplus lines and $1 million of adverse development in our reinsurance assumed operations. We recognized favorable development of $58 million for the workers' compensation line and $47 million for both the commercial property line and commercial casualty line due to reduced uncertainty of prior accident year loss and loss expense for these lines. This illustrates the potential for revisions inherent in estimating reserves, especially for long-tail lines such as workers’ compensation. During 2017 , we experienced $119 million of favorable development on prior accident years including $73 million of favorable development in commercial lines, $14 million of favorable development in personal lines, $29 million of favorable development in excess and surplus lines and $3 million of favorable development in our reinsurance assumed operations. We recognized favorable development of $54 million for the workers' compensation line, $33 million for the commercial property line and $30 million for the other commercial lines due to reduced uncertainty of prior accident year loss and loss expense for these lines. We recognized unfavorable reserve development of $33 million for the commercial auto line due to higher loss cost effects in recent accident years, resulting in an increase of our reserve estimate for claims that have not yet been settled. Commercial casualty developed unfavorably by $11 million due to paid losses or re-estimates of case reserves at higher than expected levels. During 2016 , we experienced $168 million of favorable development on prior accident years including $129 million of favorable development in commercial lines, $4 million of favorable development in personal lines, $34 million of favorable development in excess and surplus lines and $1 million of favorable development in our reinsurance assumed operations. We recognized favorable development of $69 million for the workers’ compensation line, $29 million for the commercial property line, $20 million for the commercial casualty line and $42 million for the other commercial lines due to reduced uncertainty of prior accident year loss and loss expense for these lines. We recognized unfavorable reserve development of $31 million for the commercial auto line and $18 million for the personal auto line. Both lines developed unfavorable due to higher loss cost effects in recent accident years, resulting in an increase of our reserve estimate for claims that have not yet been settled. Included in our lines of business are asbestos and environmental claims. We carried $89 million and $84 million of net loss and loss expense reserves for asbestos and environmental claims at December 31, 2018 and 2017 , respectively. The asbestos and environmental claims amounts for each respective year constituted less than 2.0 percent of total net loss and loss expense reserves at these year-end dates. We believe our exposure to asbestos and environmental claims is limited, largely because our reinsurance retention was $500,000 or below prior to 1987. We also were predominantly a personal lines company in the 1960s and 1970s. During the 1980s and early 1990s, commercial lines grew as a percentage of our overall business and our exposure to asbestos and environmental claims grew accordingly. Over that period, we included an asbestos and environmental exclusion in almost all policies or endorsed the exclusion to the policies. We have not engaged in any mergers or acquisitions through which such a liability could have been assumed. We continue to monitor our claims for evidence of material exposure to other mass tort classes but have found no such credible evidence to date. The following table provides a reconciliation of the property casualty incurred losses and allocated loss adjustment expenses (ALAE) development and paid losses and ALAE development information at December 31, 2018. (Dollars in millions) Cumulative incurred losses and ALAE as reported within the triangles, net of reinsurance Cumulative paid losses and ALAE as reported within the triangles, net of reinsurance Liabilities for loss and ALAE for accident years not presented in the triangles, net of reinsurance Total liabilities for loss and ALAE, net of reinsurance Reinsurance recoverable on unpaid losses Total liabilities for gross loss and loss expense reserves Commercial casualty $ 4,671 $ 2,658 $ 94 $ 2,107 $ 51 $ 2,158 Workers' compensation 2,142 1,493 283 932 59 991 Commercial auto 2,104 1,486 14 632 5 637 Commercial property 2,588 2,287 13 314 — 314 Personal auto 1,889 1,603 4 290 34 324 Homeowner 1,614 1,474 3 143 32 175 Excess and surplus 532 256 1 277 7 284 Other lines 483 Total liabilities for loss and ALAE reserves 5,366 Unallocated loss adjustment expense reserves 280 Gross loss and loss expense reserves $ 5,646 For all lines of business, the claim counts reported are primarily measured by insurance coverages that are triggered when a loss occurs and a reserve is established. For this purpose, coverages are defined as unique combinations of certain attributes such as line of business and cause of loss. Claims that are opened and closed without payment are included in the reported claim counts. Claim counts are presented on a direct basis only and do not reflect any assumed or ceded reinsurance. In the following tables, commercial casualty and workers' compensation each disclose 10 accident years of loss and ALAE reserves and cumulative number of reported claims. Commercial auto, commercial property, personal auto and homeowner each disclose five accident years of loss and ALAE reserves and cumulative number of reported claims as each of these lines have five year cumulative average annual percentage payouts of approximately 95 percent or higher. The excess and surplus lines began operations in 2008 with earned premiums and loss and ALAE reserves being immaterial prior to 2011. Accordingly, we disclosed eight accident years of loss and ALAE reserves and cumulative number of reported claims for the excess and surplus lines, and will disclose additional accident years in subsequent annual filings, not to exceed 10 years. Commercial Casualty The following table shows the commercial casualty incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency: (Dollars in millions, reported claims in thousands) As of December 31, 2018 Incurred losses and ALAE, net of reinsurance Total of incurred but not reported liabilities plus expected development on reported losses Cumulative number of reported claims Years ended December 31, Accident 2009 2010 2011 2012 2013 2014 2015 2016 2017 Year Unaudited 2018 2009 $ 484 $ 409 $ 412 $ 360 $ 370 $ 365 $ 357 $ 357 $ 353 $ 360 $ 13 20 2010 495 394 378 349 347 348 349 343 341 16 20 2011 466 404 377 377 375 380 366 365 13 19 2012 466 414 417 394 394 404 399 29 18 2013 448 443 431 416 413 407 53 19 2014 503 496 479 476 479 66 21 2015 533 526 529 516 105 21 2016 563 574 557 152 21 2017 610 597 262 19 2018 650 406 16 Total $ 4,671 Cumulative paid losses and ALAE, net of reinsurance 2009 $ 27 $ 75 $ 151 $ 213 $ 267 $ 295 $ 310 $ 322 $ 328 $ 338 2010 33 92 159 203 256 285 300 314 318 2011 27 93 149 227 266 298 315 325 2012 27 88 170 232 288 330 346 2013 35 90 159 232 286 312 2014 34 97 172 287 338 2015 38 108 200 287 2016 46 126 228 2017 48 122 2018 44 Total 2,658 All outstanding liabilities before 2009, net of reinsurance 94 Liabilities for loss and ALAE, net of reinsurance $ 2,107 The following table shows the average annual percentage payout of incurred losses for the commercial casualty line of business: Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 6 7 8 9 10 Average annual percentage payout 7.8% 14.5% 18.2% 18.0% 13.2% 8.4% 4.3% 3.5% 1.4% 2.7% Workers’ Compensation The following table shows the workers’ compensation incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency: (Dollars in millions, reported claims in thousands) As of December 31, 2018 Incurred losses and ALAE, net of reinsurance Total of incurred Cumulative number of reported claims Years ended December 31, Accident 2009 2010 2011 2012 2013 2014 2015 2016 2017 Year Unaudited 2018 2009 $ 307 $ 278 $ 263 $ 238 $ 238 $ 235 $ 234 $ 234 $ 232 $ 231 $ 17 27 2010 283 274 248 242 240 239 240 237 236 20 26 2011 284 251 246 242 239 236 231 229 20 24 2012 265 245 234 220 213 211 209 22 21 2013 264 246 221 212 208 205 23 20 2014 261 233 214 203 201 20 19 2015 246 220 208 195 46 17 2016 230 218 206 51 16 2017 218 208 74 15 2018 222 99 13 Total $ 2,142 Cumulative paid losses and ALAE, net of reinsurance 2009 $ 65 $ 132 $ 163 $ 179 $ 188 $ 193 $ 198 $ 201 $ 202 $ 204 2010 67 134 164 181 192 198 202 204 207 2011 65 131 161 177 186 190 192 195 2012 62 121 147 162 171 175 178 2013 61 119 144 157 164 168 2014 56 110 134 148 157 2015 47 93 115 129 2016 46 97 119 2017 45 88 2018 48 Total 1,493 All outstanding liabilities before 2009, net of reinsurance 283 Liabilities for loss and ALAE, net of reinsurance $ 932 The following table shows the average annual percentage payout of incurred losses for the workers’ compensation line of business: Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 6 7 8 9 10 Average annual percentage payout 26.2% 26.6% 12.2% 6.9% 4.1% 2.1% 1.4% 1.2% 0.9% 0.9% Commercial Auto The following table shows the commercial auto incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency: (Dollars in millions, reported claims in thousands) As of December 31, 2018 Incurred losses and ALAE, net of reinsurance Total of incurred Cumulative number of reported claims Years ended December 31, Accident 2014 2015 2016 2017 Year Unaudited 2018 2014 $ 333 $ 346 $ 351 $ 358 $ 359 $ 2 51 2015 374 384 394 401 10 51 2016 417 430 450 17 53 2017 451 441 65 51 2018 453 138 46 Total $ 2,104 Cumulative paid losses and ALAE, net of reinsurance 2014 $ 159 $ 223 $ 273 $ 310 $ 337 2015 173 244 303 349 2016 184 273 350 2017 187 266 2018 184 Total 1,486 All outstanding liabilities before 2014, net of reinsurance 14 Liabilities for loss and ALAE, net of reinsurance $ 632 The following table shows the average annual percentage payout of incurred losses for the commercial auto line of business. Commercial auto includes both physical damage and liability losses. A majority of the incurred losses paid after year 2 are the result of liability losses. Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 Average annual percentage payout 42.3% 18.3% 15.2% 10.8% 7.5% Commercial Property The following table shows the commercial property incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency: (Dollars in millions, reported claims in thousands) As of December 31, 2018 Incurred losses and ALAE, net of reinsurance Total of incurred Cumulative number of reported claims Years ended December 31, Accident 2014 2015 2016 2017 Year Unaudited 2018 2014 $ 452 $ 444 $ 441 $ 442 $ 442 $ 1 17 2015 454 414 416 415 4 17 2016 590 551 541 4 17 2017 587 560 12 18 2018 630 13 16 Total $ 2,588 Cumulative paid losses and ALAE, net of reinsurance 2014 $ 297 $ 412 $ 432 $ 437 $ 440 2015 279 388 407 411 2016 358 504 528 2017 395 522 2018 386 Total 2,287 All outstanding liabilities before 2014, net of reinsurance 13 Liabilities for loss and ALAE, net of reinsurance $ 314 The following table shows the average annual percentage payout of incurred losses for the commercial property line of business: Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 Average annual percentage payout 66.4% 25.5% 4.6% 1.0% 0.7% Personal Auto The following table shows the personal auto incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency: (Dollars in millions, reported claims in thousands) As of December 31, 2018 Incurred losses and ALAE, net of reinsurance Total of incurred Cumulative number of reported claims Years ended December 31, Accident 2014 2015 2016 2017 Year Unaudited 2018 2014 $ 317 $ 317 $ 325 $ 324 $ 325 $ — 105 2015 343 356 356 360 — 108 2016 383 384 386 3 110 2017 412 394 14 109 2018 424 64 104 Total $ 1,889 Cumulative paid losses and ALAE, net of reinsurance 2014 $ 210 $ 267 $ 298 $ 313 $ 320 2015 229 292 325 346 2016 243 316 351 2017 256 324 2018 262 Total 1,603 All outstanding liabilities before 2014 net of reinsurance 4 Liabilities for loss and ALAE, net of reinsurance $ 290 The following table shows the average annual percentage payout of incurred losses for the personal auto line of business. Personal auto includes both physical damage and liability losses. A majority of the incurred losses paid after year 2 are the result of liability losses. Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 Average annual percentage payout 63.6% 17.7% 9.3% 5.2% 2.1% Homeowner The following table shows the homeowner incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency: (Dollars in millions, reported claims in thousands) As of December 31, 2018 Incurred losses and ALAE, net of reinsurance Total of incurred Cumulative number of reported claims Years ended December 31, Accident 2014 2015 2016 2017 Year Unaudited 2018 2014 $ 297 $ 283 $ 286 $ 285 $ 284 $ — 26 2015 284 275 275 274 — 24 2016 315 304 303 1 23 2017 356 383 3 26 2018 370 15 21 Total $ 1,614 Cumulative paid losses and ALAE, net of reinsurance 2014 $ 224 $ 273 $ 281 $ 283 $ 283 2015 203 260 269 272 2016 208 283 295 2017 277 356 2018 268 Total 1,474 All outstanding liabilities before 2014, net of reinsurance 3 Liabilities for loss and ALAE, net of reinsurance $ 143 The following table shows the average annual percentage payout of incurred losses for the homeowner line of business: Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 Average annual percentage payout 73.2% 20.9% 3.4% 0.8% 0.2% Excess and Surplus Lines The following table shows the excess and surplus lines incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency: (Dollars in millions, reported claims in thousands) As of December 31, 2018 Incurred losses and ALAE, net of reinsurance Total of incurred Cumulative number of reported claims Years ended December 31, Accident 2011 2012 2013 2014 2015 2016 2017 Year Unaudited 2018 2011 $ 48 $ 47 $ 44 $ 38 $ 36 $ 35 $ 35 $ 34 $ — 1 2012 67 56 49 40 37 36 35 1 1 2013 74 64 54 45 42 41 3 2 2014 95 82 75 64 60 10 2 2015 96 81 73 67 13 2 2016 93 87 84 22 2 2017 104 95 43 2 2018 116 71 2 Total $ 532 Cumulative paid losses and ALAE, net of reinsurance 2011 $ 8 $ 14 $ 23 $ 27 $ 30 $ 32 $ 34 $ 33 2012 9 15 19 25 29 31 32 2013 7 12 20 27 32 34 2014 9 17 27 37 43 2015 8 19 29 41 2016 10 21 39 2017 11 23 2018 11 Total 256 All outstanding liabilities before 2011, net of reinsurance 1 Liabilities for loss and ALAE, net of reinsurance $ 277 The following table shows the average annual percentage payout of incurred losses for the excess and surplus lines insurance segment. Excess and surplus lines consist mostly of commercial casualty and commercial property coverages. A majority of the incurred losses paid after year 2 are the result of commercial casualty losses. Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 6 7 8 Average annual percentage payout 15.8% 14.4% 18.8% 15.6% 10.5% 6.8% 2.0% 0.5% |
Life Policy And Investment Cont
Life Policy And Investment Contract Reserves | 12 Months Ended |
Dec. 31, 2018 | |
Liability for Future Policy Benefits [Abstract] | |
Life Policy And Investment Contract Reserves | Life Policy and Investment Contract Reserves We establish the reserves for traditional life insurance policies based on expected expenses, mortality, morbidity, withdrawal rates, timing of claim presentation and investment yields, including a provision for uncertainty. Once these assumptions are established, they generally are maintained throughout the lives of the contracts. We use both our own experience and industry experience, adjusted for historical trends, in arriving at our assumptions for expected mortality, morbidity and withdrawal rates as well as for expected expenses. We base our assumptions for expected investment income on our own experience adjusted for current and future economic conditions. We establish reserves for the company’s universal life, deferred annuity and structured settlement policies equal to the cumulative account balances, which include premium deposits plus credited interest less charges and withdrawals. Some of our universal life policies contain no-lapse guarantee provisions. For these policies, we establish a reserve in addition to the account balance, based on expected no-lapse guarantee benefits and expected policy assessments. This table summarizes our life policy and investment contract reserves: (Dollars in millions) At December 31, 2018 2017 Life policy reserves: Ordinary/traditional life $ 1,149 $ 1,080 Other 48 47 Subtotal 1,197 1,127 Investment contract reserves: Deferred annuities 787 835 Universal life 632 601 Structured settlements 156 160 Other 7 6 Subtotal 1,582 1,602 Total life policy and investment contract reserves $ 2,779 $ 2,729 |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs [Abstract] | |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs Expenses directly related to successfully acquired insurance policies – primarily commissions, premium taxes and underwriting costs – are deferred and amortized over the terms of the policies. We update our acquisition cost assumptions periodically to reflect actual experience, and we evaluate the costs for recoverability. The table below shows the deferred policy acquisition costs and asset reconciliation: (Dollars in millions) Years ended December 31, 2018 2017 2016 Property casualty: Deferred policy acquisition costs asset, January 1 $ 438 $ 408 $ 388 Capitalized deferred policy acquisition costs 933 897 840 Amortized deferred policy acquisition costs (907 ) (867 ) (820 ) Deferred policy acquisition costs asset, December 31 $ 464 $ 438 $ 408 Life: Deferred policy acquisition costs asset, January 1 $ 232 $ 229 $ 228 Capitalized deferred policy acquisition costs 60 51 49 Amortized deferred policy acquisition costs (39 ) (46 ) (43 ) Shadow deferred policy acquisition costs 21 (2 ) (5 ) Deferred policy acquisition costs asset, December 31 $ 274 $ 232 $ 229 Consolidated: Deferred policy acquisition costs asset, January 1 $ 670 $ 637 $ 616 Capitalized deferred policy acquisition costs 993 948 889 Amortized deferred policy acquisition costs (946 ) (913 ) (863 ) Shadow deferred policy acquisition costs 21 (2 ) (5 ) Deferred policy acquisition costs asset, December 31 $ 738 $ 670 $ 637 No premium deficiencies were recorded in the consolidated statements of income in 2018 , 2017 and 2016 , as the sum of the anticipated loss and loss expenses, policyholder dividends and unamortized deferred acquisition expenses did not exceed the related unearned premiums and anticipated investment income. |
Note Payable
Note Payable | 12 Months Ended |
Dec. 31, 2018 | |
Notes Payable, Current [Abstract] | |
Note Payable | Note Payable We had one line of credit through multiple commercial banks with a borrowing capacity of $225 million and an additional $50 million accordion feature. Our unsecured revolving credit facility had a term of five years that was due to expire May 13, 2019 . We had no compensating balance requirements on short-term debt for either 2018 or 2017 . At December 31, 2018 and 2017, $32 million and $24 million was drawn on the line of credit, respectively. The interest rate charged on our borrowings on this credit agreement ranged from 2.45 percent to 4.75 percent during 2018 and ranged from 1.65 percent to 2.45 percent during 2017 . Effective February 4, 2019, we amended our unsecured revolving line of credit to $300 million with an accordion feature of an additional $300 million . The agreement was extended for five years , amending the expiration to February 4, 2024 , with the option of two one-year extensions. Terms and conditions are similar to the former agreement except the net worth covenant has been eliminated and the debt-to-total capital maximum shall not exceed 35 percent . |
Long-Term Debt And Capital Leas
Long-Term Debt And Capital Lease Obligation | 12 Months Ended |
Dec. 31, 2018 | |
Long-term Debt and Capital Lease Obligations [Abstract] | |
Long-Term Debt And Capital Lease Obligation | Long-Term Debt and Capital Lease Obligations This table summarizes the principal amounts of our long-term debt excluding unamortized discounts, none of which are encumbered by rating triggers: (Dollars in millions) Book value Principal amount Interest rate Year of issue At December 31, At December 31, 2018 2017 2018 2017 6.900% 1998 Senior debentures, due 2028 $ 27 $ 26 $ 28 $ 28 6.920% 2005 Senior debentures, due 2028 391 391 391 391 6.125% 2004 Senior notes, due 2034 370 370 374 374 Total $ 788 $ 787 $ 793 $ 793 Capital lease obligations totaled $46 million and $40 million in 2018 and 2017 , respectively. Below are the expected capital lease obligations, which includes $3 million of interest, that we expect to pay over the next six years: (Dollars in millions) Years ended December 31, 2019 2020 2021 2022 2023 2024 Capital lease obligations $ 16 $ 12 $ 9 $ 6 $ 4 $ 2 |
Shareholders' Equity And Divide
Shareholders' Equity And Dividend Restrictions | 12 Months Ended |
Dec. 31, 2018 | |
Shareholders Equity And Dividend Restrictions [Abstract] | |
Shareholders' Equity And Dividend Restrictions | Shareholders’ Equity and Dividend Restrictions Declared cash dividends per share were $2.12 , $2.50 and $1.92 for the years ended December 31, 2018 , 2017 and 2016 , respectively. Our insurance subsidiary declared dividends to the parent company of $500 million in 2018 , $465 million in 2017 and $475 million in 2016 . State regulatory requirements restrict the dividends insurance subsidiaries can pay. Generally, the most our insurance subsidiary can pay without prior regulatory approval is the greater of 10 percent of statutory capital and surplus or 100 percent of statutory net income for the prior calendar year. Dividends exceeding these limitations may be paid only with approval of the insurance department of the domiciliary state. During 2019 , the total that our insurance subsidiary, which is the parent of all other insurance subsidiaries, may declare in dividends is approximately $626 million . Accumulated Other Comprehensive Income The table below shows beginning and end of year accumulated other comprehensive income (AOCI) for investments, pension obligations, life deferred acquisition costs, life policy reserves and other. The changes from the beginning of year to the end of year are the result of changes to other comprehensive income or loss (OCI). (Dollars in millions) 2018 2017 2016 Before tax Income tax Net Before Income Net Before Income Net Investments: AOCI, January 1 $ 3,540 $ 733 $ 2,807 $ 2,625 $ 908 $ 1,717 $ 2,094 $ 722 $ 1,372 Cumulative effect of change in accounting for equity securities as of January 1, 2018 (3,155 ) (652 ) (2,503 ) — — — — — — Adjusted AOCI, beginning of period 385 81 304 2,625 908 1,717 2,094 722 1,372 OCI before investment gains and losses, net, recognized in net income (334 ) (71 ) (263 ) 1,054 366 688 653 229 424 Investment gains and losses, net, recognized in net income (5 ) (1 ) (4 ) (139 ) (49 ) (90 ) (122 ) (43 ) (79 ) OCI (339 ) (72 ) (267 ) 915 317 598 531 186 345 Adjustment to reclassify certain tax effects from AOCI — — — — (492 ) 492 — — — AOCI, December 31 $ 46 $ 9 $ 37 $ 3,540 $ 733 $ 2,807 $ 2,625 $ 908 $ 1,717 Pension obligations: AOCI, January 1 $ (12 ) $ (1 ) $ (11 ) $ (26 ) $ (8 ) $ (18 ) $ (42 ) $ (14 ) $ (28 ) OCI excluding amortization recognized in net income (5 ) (1 ) (4 ) 12 6 6 13 5 8 Amortization recognized in net income 1 — 1 2 1 1 3 1 2 OCI (4 ) (1 ) (3 ) 14 7 7 16 6 10 AOCI, December 31 $ (16 ) $ (2 ) $ (14 ) $ (12 ) $ (1 ) $ (11 ) $ (26 ) $ (8 ) $ (18 ) Life deferred acquisition costs, life policy reserves and other: AOCI, January 1 $ (10 ) $ (2 ) $ (8 ) $ (9 ) $ (3 ) $ (6 ) $ 1 $ 1 $ — OCI before investment gains and losses, net, recognized in net income (3 ) (1 ) (2 ) 8 5 3 (8 ) (3 ) (5 ) Investment gains and losses, net, recognized in net income 12 3 9 (9 ) (4 ) (5 ) (2 ) (1 ) (1 ) OCI 9 2 7 (1 ) 1 (2 ) (10 ) (4 ) (6 ) AOCI, December 31 $ (1 ) $ — $ (1 ) $ (10 ) $ (2 ) $ (8 ) $ (9 ) $ (3 ) $ (6 ) Summary of AOCI: AOCI, January 1 $ 3,518 $ 730 $ 2,788 $ 2,590 $ 897 $ 1,693 $ 2,053 $ 709 $ 1,344 Cumulative effect of change in accounting for equity securities as of January 1, 2018 (3,155 ) (652 ) (2,503 ) — — — — — — Adjusted AOCI, beginning of period 363 78 285 2,590 897 1,693 2,053 709 1,344 Investments OCI (339 ) (72 ) (267 ) 915 317 598 531 186 345 Pension obligations OCI (4 ) (1 ) (3 ) 14 7 7 16 6 10 Life deferred acquisition costs, life policy reserves and other OCI 9 2 7 (1 ) 1 (2 ) (10 ) (4 ) (6 ) Total OCI (334 ) (71 ) (263 ) 928 325 603 537 188 349 Adjustment to reclassify certain tax effects from AOCI — — — — (492 ) 492 — — — AOCI, December 31 $ 29 $ 7 $ 22 $ 3,518 $ 730 $ 2,788 $ 2,590 $ 897 $ 1,693 Investments gains and losses, net, and life deferred acquisition costs, life policy reserves and other investment gains and losses, net, are recorded in the investment gains and losses, net, line item in the consolidated statements of income. Amortization on pension obligations is recorded in the insurance losses and contract holders' benefits and underwriting, acquisition and insurance expenses line items in the consolidated statements of income. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2018 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | Reinsurance Primary components of our property casualty reinsurance assumed operations include involuntary and voluntary assumed as well as contracts from our reinsurance assumed operations, known as Cincinnati Re. Primary components of our ceded reinsurance include a property per risk treaty, property excess treaty, casualty per occurrence treaty, casualty excess treaty, property catastrophe treaty and catastrophe bonds and retrocessions on our reinsurance assumed operations. Management’s decisions about the appropriate level of risk retention are affected by various factors, including changes in our underwriting practices, capacity to retain risks and reinsurance market conditions. The table below summarizes our consolidated property casualty insurance net written premiums, earned premiums and incurred loss and loss expenses: (Dollars in millions) Years ended December 31, 2018 2017 2016 Direct written premiums $ 5,018 $ 4,854 $ 4,646 Assumed written premiums 173 125 103 Ceded written premiums (161 ) (139 ) (169 ) Net written premiums $ 5,030 $ 4,840 $ 4,580 Direct earned premiums $ 4,931 $ 4,752 $ 4,567 Assumed earned premiums 149 132 77 Ceded earned premiums (160 ) (162 ) (162 ) Earned premiums $ 4,920 $ 4,722 $ 4,482 Direct incurred loss and loss expenses $ 3,188 $ 2,961 $ 2,874 Assumed incurred loss and loss expenses 125 113 43 Ceded incurred loss and loss expenses (90 ) 64 (56 ) Incurred loss and loss expenses $ 3,223 $ 3,138 $ 2,861 Our changes in 2017 direct incurred and ceded incurred compared to 2016 resulted primarily from a large settlement paid by USAIG, a joint underwriting association of individual insurance companies that collectively functions as a worldwide aviation insurance market. This settlement resulted in offsetting amounts to direct incurred and ceded incurred with no change to our net incurred loss and loss expense. We terminated our participation in the USAIG pool after policy year 2002. Our life insurance company purchases reinsurance for protection of a portion of risks that are written. Primary components of our life reinsurance program include individual mortality coverage, aggregate catastrophe and accidental death coverage in excess of certain deductibles. The table below summarizes our consolidated life insurance earned premiums and contract holders' benefits incurred: (Dollars in millions) Years ended December 31, 2018 2017 2016 Direct earned premiums $ 320 $ 300 $ 290 Ceded earned premiums (70 ) (68 ) (62 ) Earned premiums $ 250 $ 232 $ 228 Direct contract holders' benefits incurred $ 328 $ 319 $ 303 Ceded contract holders' benefits incurred (61 ) (67 ) (57 ) Contract holders' benefits incurred $ 267 $ 252 $ 246 The ceded benefits incurred can vary depending on the type of life insurance policy held and the year the policy was issued. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The significant components of deferred tax assets and liabilities included in the consolidated balance sheets at December 31 were as follows: (Dollars in millions) At December 31, 2018 2017 Deferred tax assets: Loss and loss expense reserves $ 60 $ 123 Unearned premiums 105 100 Other 33 27 Total gross deferred tax assets 198 250 Deferred tax liabilities: Investment gains and other, net 542 740 Deferred acquisition costs 131 123 Life policy reserves 117 111 Investments 18 10 Other 17 11 Total gross deferred tax liabilities 825 995 Net deferred income tax liability $ 627 $ 745 Deferred tax assets and liabilities reflect temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amount recognized for tax purposes. Deferred tax assets are reduced by a valuation allowance when management believes it is more likely than not that some, or all, of the deferred tax assets will not be realized. After considering all positive and negative evidence of taxable income in the carryback and carryforward periods as permitted by law, we believe it is more likely than not that all of the deferred tax asset will be realized. As a result, we have no valuation allowance as of December 31, 2018 and 2017. The differences between the 21 percent and 35 percent statutory federal income tax rate and our effective income tax rate were as follows: (Dollars in millions) Years ended December 31, 2018 2017 2016 Tax at statutory rate: $ 53 21.0 % $ 256 35.0 % $ 284 35.0 % Increase (decrease) resulting from: Tax-exempt income from municipal bonds (20 ) (8.0 ) (36 ) (4.9 ) (34 ) (4.2 ) Dividend received exclusion (15 ) (6.0 ) (34 ) (4.7 ) (33 ) (4.1 ) Tax accounting method changes (50 ) (19.9 ) — — — — Deferred tax benefit due to tax rate change — — (495 ) (67.8 ) — — Other (4 ) (1.4 ) (6 ) (0.8 ) 4 0.5 Provision for income taxes $ (36 ) (14.3 )% $ (315 ) (43.2 )% $ 221 27.2 % On December 22, 2017, the Tax Act was enacted and represented one of the most comprehensive changes in U.S. corporate income taxation since 1986. The Tax Act revised the U.S. corporate income tax by lowering the corporate income tax rate from a top marginal rate of 35 percent to a flat rate of 21 percent. In addition to lowering tax rates, changes were made to the amount of the dividends received deduction and the required proration addback for qualified dividend income and tax exempt municipal interest. The Tax Act was effective January 1, 2018. The reduction in corporate income tax rate decreased our net deferred tax liability as of December 22, 2017, by $495 million . The effect of the rate change was recorded as a one-time noncash benefit to income tax expense in our consolidated statements of income for the year ended December 31, 2017. This benefit results from re-measuring our net deferred tax liability at the newly enacted corporate income tax rate of 21 percent (the rate at which the deferred items are expected to be reversed) versus the 35 percent rate at which the net deferred tax benefits were previously carried. Of this $495 million benefit, $492 million relates to net unrealized gains on investments and other AOCI amounts. The remainder relates to differences in the recognition of deferred acquisition costs, unearned premiums, insurance reserves and basis differences in the carrying value of investments held. In 2018, we received approval from the IRS to change our method of tax accounting for certain items applicable for the 2017 tax year and tax return, primarily related to the valuation of our tax base unpaid losses. Accounting guidance does not allow recognition of the impact of certain tax accounting method changes until approved by the IRS. As a result, we recognized a $50 million income tax benefit in 2018 for the difference between the current tax rate and the 2017 tax rate for the related items. This reduced our effective tax rate by 19.9 percent for the twelve months ended December 31, 2018. Our accounting for all elements of the Tax Act is now complete, consistent with the closing of the SAB 118 measurement period on December 22, 2018. As a result of guidance released by the IRS during the measurement period, we have adjusted our deferred tax balances related to property casualty tax base loss and loss expense reserve liabilities, tax base life policy reserve liabilities, and the transition liability associated with both property-casualty and life reserves. The recorded adjustments resulted in no impact on our recorded net deferred income tax liability. The recorded adjustments had no impact on our effective tax rate. The provision for federal income taxes is based upon filing a consolidated income tax return for the company and its subsidiaries. As of December 31, 2018, 2017 and 2016, we have less than one million of life group operating loss carryforwards which we expect to receive benefit from in our 2018 tax return which will be filed in 2019. For the years ended December 31, 2018, 2017 and 2016, we have no capital loss carryforwards. Unrecognized Tax Benefits As of December 31, 2018 , we had a gross unrecognized tax benefit of $34 million . We carry no amounts for unrecognized tax benefits for the years 2017 and 2016. The following is a tabular reconciliation of the total amounts of unrecognized tax benefits. (Dollars in millions) Years ended December 31, 2018 2017 2016 Gross unrecognized tax benefits at January 1 $ — $ — $ — Gross increase in prior year positions — — — Gross decrease in prior year positions — — — Gross increase in current year positions 34 — — Settlements with tax authorities — — — Lapse of statute of limitations — — — Gross unrecognized tax benefits at December 31 $ 34 $ — $ — The unrecognized tax benefit liability is carried in other liabilities in the consolidated balance sheets. Included in the unrecognized tax benefit liability as of December 31, 2018 is $34 million , if recognized, would affect the effective tax rate. Although no interest and penalties currently are accrued, if incurred, they would be recognized as a component of income tax expense. When the IRS processes our income tax return filing for the 2018 tax year, it is possible that a decrease for the full amount of our $34 million of unrecognized tax benefits, all of which relates to our property-casualty tax base insurance claims and reserve deduction, may be necessary within the coming year. The statute of limitations for federal tax purposes has closed for tax years 2014 and earlier. There are no federal returns under examination and we have not been notified of any upcoming IRS examinations. In addition to our IRS filings, we file income tax returns with immaterial amounts in various state jurisdictions. The statute of limitations for state income tax purposes has closed for tax years 2014 and earlier. There are no state income returns under examination and we have not been notified of any upcoming state examinations. Income taxes paid in our consolidated statements of cash flows are shown net of refunds received. We received no refunds in 2018 , $18 million in 2017 and $2 million in 2016. |
Net Income Per Common Share
Net Income Per Common Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | Net Income Per Common Share Basic earnings per share are computed based on the weighted average number of common shares outstanding. Diluted earnings per share are computed based on the weighted average number of common and dilutive potential common shares outstanding using the treasury stock method. The table shows calculations for basic and diluted earnings per share: (In millions, except per share data) Years ended December 31, 2018 2017 2016 Numerator: Net income—basic and diluted $ 287 $ 1,045 $ 591 Denominator: Basic weighted-average common shares outstanding 163.2 164.2 164.5 Effect of share-based awards: Stock options 0.8 1.1 1.1 Nonvested shares 0.5 0.7 0.9 Diluted weighted-average shares 164.5 166.0 166.5 Earnings per share: Basic $ 1.76 $ 6.36 $ 3.59 Diluted 1.75 6.29 3.55 Number of anti-dilutive share-based awards 1.3 0.7 0.3 The sources of dilution of our common shares are certain equity-based awards as discussed in Note 17, Share-Based Associate Compensation Plans. The above table includes the number of anti-dilutive share-based awards at year-end 2018 , 2017 and 2016 . We did not include these share-based awards in the computation of net income per common share (diluted) because their exercise would have anti-dilutive effects. Our 2017 net income and basic and diluted earnings per share were impacted by the Tax Act as discussed in Note 11, Income Taxes. |
Employee Retirement Benefits
Employee Retirement Benefits | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Employee Retirement Benefits | Employee Retirement Benefits We sponsor a qualified defined benefit pension plan that we closed entry into for new associates as of June 30, 2008, and only participants 40 years of age or older as of August 31, 2008, could elect to continue to participate. During 2008, we changed the form of retirement benefit we offer some associates to a company match on contributions to a 401(k) plan as further explained below. For participants remaining in the pension plan, we continue to fund future benefit obligations. Benefits for the defined benefit pension plan are based on years of credited service and compensation level. Contributions are based on the prescribed method defined in the Pension Protection Act. Our net periodic benefit cost is based on certain actuarial assumptions and also is composed of several components that are determined using the projected unit credit actuarial cost method. The qualified plan has been amended to allow for distribution of vested balances to terminated participants. We sponsor a defined contribution plan (401(k) plan) with matching company contributions totaling $18 million , $16 million and $14 million during the years 2018 , 2017 and 2016 , respectively. Associates who are not accruing benefits under the pension plan are eligible to receive the company match of up to 6 percent of cash compensation. Participants vest in the company match for the 401(k) plan after three years of eligible service. We maintain a supplemental executive retirement plan (SERP) with a benefit obligation of $10 million at year-end 2018 and $9 million at year-end 2017 , which is included in the projected benefit obligation. The company also makes available to a select group of associates the CFC Top Hat Savings Plan, a nonqualified deferred compensation plan, which had a fair value of $34 million and $31 million at December 31, 2018 and 2017 , respectively. Company matching contributions to the CFC Top Hat Savings Plan totaled $1 million for the years 2018 and 2017 and less than $1 million for the year 2016. Defined Benefit Pension Plan Assumptions We evaluate our pension plan assumptions annually and update them as necessary. This is a summary of the weighted-average assumptions used to determine our benefit obligations at December 31 for the plans: Qualified Pension Plan SERP 2018 2017 2018 2017 Discount rate 4.34 % 3.73 % 4.25 % 3.61 % Rate of compensation increase 2.25-3.25 2.75-3.25 2.25-3.25 2.75-3.25 To determine the discount rate for each plan, a theoretical settlement portfolio of high-quality rated corporate bonds was chosen to provide payments approximately matching the plan’s projected benefit payments. A single interest rate for each plan was determined resulting in a discounted value of the plan's benefit payments that equates to the market value of the selected bonds. The discount rate is reflective of current market interest rate conditions and our plan's liability characteristics. Based on this analysis, we increased the rate from the prior year by 0.61 percentage points for the qualified pension plan and by 0.64 percentage points for the SERP. Compensation increase assumptions reflect anticipated rates of inflation, real return on wage growth and merit and promotional increases. The mortality assumption is updated annually to reflect the updated scale. The RP-2014 Employee Mortality Tables and RP-2014 Annuitant Mortality Tables for males and females projected generationally with Scale MP-2018, Scale MP-2017 and Scale MP-2016 were used for the years 2018, 2017 and 2016, respectively. The updated mortality table did not have a significant impact on our consolidated financial statements as our qualified plan assumes the majority of benefits will be paid in the form of lump sums. This is a summary of the weighted-average assumptions used to determine our net periodic benefit cost for the plans: Qualified Pension Plan SERP 2018 2017 2016 2018 2017 2016 Discount rate 3.73 % 4.30 % 4.55 % 3.61 % 4.10 % 4.30 % Expected return on plan assets 7.25 7.25 7.25 n/a n/a n/a Rate of compensation increase 2.75-3.25 2.75-3.25 2.75-3.25 2.75-3.25 2.75-3.25 2.75-3.25 The discount rate was decreased by 0.57 percentage points for the qualified pension plan and 0.49 percentage points for the SERP due to market interest rate conditions at the beginning of 2018 . The discount rate assumptions for our benefit obligation generally track with high-quality rated corporate bond yields chosen in our theoretical settlement portfolio, and yearly adjustments reflect any changes to those bond yields. We believe the expected return on plan assets is representative of the expected long-term rate of return on these assets, which is consistent with 2018 expectations of interest rates and based partially on the fact that the plan’s common stock holdings pay dividends. We review historical actual return on plan assets when determining our expected long-term rate of return. Total portfolio return for 2018 was negative 1.7 percent and for 2017 was 17.4 percent. Our compensation increase assumptions in 2018 reflect anticipated rates of inflation, real return on wage growth and merit and promotional increases. Benefit obligation activity using an actuarial measurement date for our qualified pension plan and SERP at December 31 follows: (Dollars in millions) At December 31, 2018 2017 Change in projected benefit obligation: Benefit obligation, January 1 $ 351 $ 340 Service cost 11 11 Interest cost 13 14 Actuarial (gain) loss (19 ) 20 Benefits paid (38 ) (34 ) Projected benefit obligation, December 31 $ 318 $ 351 Change in plan assets: Fair value of plan assets, January 1 $ 345 $ 315 Actual return on plan assets (4 ) 52 Employer contribution 15 12 Benefits paid (38 ) (34 ) Fair value of plan assets, December 31 $ 318 $ 345 Funded status, December 31 $ — $ (6 ) Accumulated benefit obligation $ 297 $ 322 Our funded status improved for 2018 primarily due to actuarial gains from increases in discount rates and assumed lump sum rates partially offset by lower returns on plan assets. A reconciliation follows of the funded status for our qualified plan and SERP at the end of the measurement period to the amounts recognized in the consolidated balance sheets at December 31: (Dollars in millions) At December 31, 2018 2017 Pension amounts recognized in the consolidated balance sheets: Other liabilities $ — $ (6 ) Total $ — $ (6 ) Pension amounts recognized in accumulated other comprehensive income: Net actuarial loss $ 16 $ 12 Prior service cost — — Total $ 16 $ 12 Below are the components of our net periodic benefit cost, as well as other changes in plan assets and benefit obligations recognized in other comprehensive income for our qualified plan and SERP at December 31: (Dollars in millions) Years ended December 31, 2018 2017 2016 Net periodic benefit cost: Service cost $ 11 $ 11 $ 11 Non-service costs (benefit): Interest cost 13 14 14 Expected return on plan assets (22 ) (21 ) (19 ) Amortization of actuarial loss and prior service cost 1 2 3 Other 2 1 — Net periodic benefit cost $ 5 $ 7 $ 9 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Current year actuarial (gain) loss $ 7 $ (11 ) $ (13 ) Amortization of actuarial loss (3 ) (3 ) (2 ) Amortization of prior service cost — — (1 ) Total recognized in other comprehensive (income) loss $ 4 $ (14 ) $ (16 ) Total recognized in net periodic benefit cost and other comprehensive (income) loss $ 9 $ (7 ) $ (7 ) The 2018 amount recognized in net periodic benefit cost and other comprehensive income increased from 2017. The 2018 change in the amount recognized in other comprehensive income from 2017 is largely due to changes in the actuarial loss resulting from decreases in discount and assumed lump sum rates. The estimated costs to be amortized from AOCI into net periodic benefit cost over the next year for our plans are $1 million in actuarial loss and less than $1 million in prior service cost. Service costs and non-service costs (benefit) are allocated in the same proportion primarily to underwriting, acquisition and insurance expenses line item with the remainder allocated to the insurance losses and contract holders' benefits line item on the consolidated statements of income for 2018, 2017 and 2016. Defined Benefit Pension Plan Assets The pension plan assets are managed to maximize total return over the long term while providing sufficient liquidity and current return to satisfy the cash flow requirements of the plan. The plan’s day-to-day investment decisions are managed by our internal investment department; however, overall investment strategies are discussed with our employee benefits committee. Our investment strategy is to weight our portfolio towards large-cap, high-quality, dividend-growing equities that we have historically favored. As our plan matures and interest rates normalize, we expect a greater allocation to fixed-income securities to better align asset and liability market risks. Our fixed-maturity bond portfolio is investment grade. The plan does not engage in derivative transactions. Excluding cash, during 2018 we held approximately 75 percent of our pension portfolio in domestic common equity investments. The remainder of the portfolio consisted of 10 percent in states, municipalities and taxable political subdivisions fixed-maturity investments, 13 percent in domestic corporate fixed-maturity investments and 2 percent in United States government. Our common equity portfolio consisted of 21 percent in the financial sector, 20 percent in the information technology sector, 14 percent in the healthcare sector, 11 percent in the industrial sector and 10 percent in the consumer discretionary industrial sector at year-end 2018 . No additional sectors accounted for 10 percent or more of our common equity portfolio balance at year-end 2018 . Investments in securities are valued based on the fair value hierarchy outlined in Note 3, Fair Value Measurements. The pension plan did not have any liabilities carried at fair value during the years ended December 31, 2018 and 2017 . There have been no transfers between Level 1 and Level 2 for the years ended December 31, 2018 and 2017 . The following table shows the fair value hierarchy for those assets measured at fair value on a recurring basis at December 31, 2018 and 2017 . Excluded from the table below is cash on hand of $32 million and $18 million at December 31, 2018 and 2017 , respectively. (Dollars in millions) Quoted prices in Significant other Significant (Level 3) Total At December 31, 2018 Fixed maturities, available for sale: States, municipalities and political subdivisions $ — $ 29 $ — $ 29 Corporate — 37 — 37 United States Government 5 — — 5 Total fixed maturities, available for sale 5 66 — 71 Common equities 215 — — 215 Total $ 220 $ 66 $ — $ 286 At December 31, 2017 Fixed maturities, available for sale: States, municipalities and political subdivisions $ — $ 31 $ — $ 31 Corporate — 34 — 34 Total fixed maturities, available for sale — 65 — 65 Common equities, available for sale 262 — — 262 Total $ 262 $ 65 $ — $ 327 Our pension plan assets included 232,113 shares of the company’s common stock at both December 31, 2018 and 2017 , which had a fair value of $18 million and $17 million at December 31, 2018 and 2017 , respectively. The defined benefit pension plan did not purchase or sell any shares of our common stock during 2018 and 2017 . The company paid less than $1 million in 2018 and $1 million in 2017 in cash dividends on our common stock to the pension plan. We estimate $4 million of benefit payments from the SERP during 2019 . We expect to make the following benefit payments for our qualified plan and SERP, reflecting expected future service: (Dollars in millions) Years ended December 31, 2019 2020 2021 2022 2023 2024 - 2028 Expected future benefit payments $ 43 $ 23 $ 22 $ 21 $ 22 $ 140 |
Statutory Accounting Informatio
Statutory Accounting Information | 12 Months Ended |
Dec. 31, 2018 | |
Staturory Accounting Information [Abstract] | |
Statutory Accounting Information | Statutory Accounting Information Insurance companies’ statutory financial statements are presented on the basis of accounting practices prescribed or permitted by applicable state insurance departments of domicile. Insurance companies use statutory accounting practices (SAP) as recognized by various states. We have adopted the National Association of Insurance Commissioners’ (NAIC) Accounting Practices and Procedures manual, version effective January 1, 2001, and updates through the current year as a component of prescribed or permitted practices by laws of the state of domicile. The primary differences between SAP and GAAP include the valuation of investment gains and losses, expensing of policy acquisition costs, actuarial assumptions for life insurance reserves and deferred income taxes based on differences in statutory and taxable income. Statutory net income and capital and surplus are determined in accordance with SAP prescribed or permitted by insurance regulatory authorities for five legal entities, our insurance subsidiary and its four insurance subsidiaries. Statutory capital and surplus for our insurance subsidiary, The Cincinnati Insurance Company, includes capital and surplus of its four insurance subsidiaries. All capital and surplus amounts exceed statutory risk-based capital requirements. The statutory net income and statutory capital and surplus are presented below: (Dollars in millions) Net income Capital and surplus Years ended December 31, At December 31, 2018 2017 2016 2018 2017 The Cincinnati Insurance Company $ 626 $ 401 $ 434 $ 4,919 $ 5,094 The Cincinnati Casualty Company 16 21 11 398 392 The Cincinnati Indemnity Company 5 4 4 102 100 The Cincinnati Specialty Underwriters Insurance Company 69 58 57 479 436 The Cincinnati Life Insurance Company — 12 2 191 195 |
Transactions With Affiliated Pa
Transactions With Affiliated Parties | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Transactions With Affiliated Parties | Transactions With Affiliated Parties We paid certain officers and directors, or insurance agencies of which they are shareholders, commissions of $7 million in 2018 , 2017 and 2016 , on premium volume of $45 million for 2018 and 2017 and $44 million for 2016 |
Commitments And Contingent Liab
Commitments And Contingent Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingent Liabilities | Commitments and Contingent Liabilities In the ordinary course of conducting business, the company and its subsidiaries are named as defendants in various legal proceedings. Most of these proceedings are claims litigation involving the company's insurance subsidiaries in which the company is either defending or providing indemnity for third-party claims brought against insureds or litigating first-party coverage claims. The company accounts for such activity through the establishment of unpaid loss and loss expense reserves. We believe that the ultimate liability, if any, with respect to such ordinary-course claims litigation, after consideration of provisions made for potential losses and costs of defense, is immaterial to our consolidated financial condition, results of operations and cash flows. The company and its subsidiaries also are occasionally involved in other legal and regulatory proceedings, some of which assert claims for substantial amounts. These actions include, among others, putative class actions seeking certification of a state or national class. Such proceedings have alleged, for example, breach of an alleged duty to search national databases to ascertain unreported deaths of insureds under life insurance policies. The company's insurance subsidiaries also are occasionally parties to individual actions in which extra-contractual damages, punitive damages or penalties are sought, such as claims alleging bad faith handling of insurance claims or writing unauthorized coverage or claims alleging discrimination by former or current associates. On a quarterly basis, we review these outstanding matters. Under current accounting guidance, we establish accruals when it is probable that a loss has been incurred and we can reasonably estimate its potential exposure. The company accounts for such probable and estimable losses, if any, through the establishment of legal expense reserves. Based on our quarterly review, we believe that our accruals for probable and estimable losses are reasonable and that the amounts accrued do not have a material effect on our consolidated financial condition or results of operations. However, if any one or more of these matters results in a judgment against us or settlement for an amount that is significantly greater than the amount accrued, the resulting liability could have a material effect on the company's consolidated results of operations or cash flows. Based on our most recent review, our estimate for any other matters for which the risk of loss is not probable, but more than remote, is immaterial. |
Share-Based Associate Compensat
Share-Based Associate Compensation Plans | 12 Months Ended |
Dec. 31, 2018 | |
Share-based Compensation [Abstract] | |
Stock-Based Associate Compensation Plans | Share-Based Associate Compensation Plans Four equity compensation plans currently permit us to grant various types of equity awards. We currently grant incentive stock options, nonqualified stock options, service-based restricted stock units and performance-based restricted stock units to associates, including some with market-based performance objectives under our shareholder-approved plans. We also have a Holiday Stock Plan that permits annual awards of one share of common stock to each full-time associate for each full calendar year of service up to a maximum of 10 shares. One of our equity compensation plans permits us to grant stock to our outside directors as a component of their annual compensation. We used treasury shares for share-based compensation award issues or exercises during 2018 and 2017 . Share-based compensation cost after tax was $23 million , $17 million and $15 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. The related income tax benefit recognized was $5 million , $9 million , and $8 million for the years ended December 31, 2018, 2017 and 2016, respectively. Options exercised during the years ended December 31, 2018 , 2017 and 2016 , had intrinsic value of $15 million , $19 million and $25 million , respectively. Intrinsic value is the market price less the exercise price. Options vested during the years ended December 31, 2018 , 2017 and 2016 , had total intrinsic value of $6 million , $8 million and $11 million , respectively. As of December 31, 2018 , we had $30 million of unrecognized total compensation cost related to nonvested stock options and restricted stock unit awards. That cost will be recognized over a weighted-average period of 1.7 years. Stock Options Stock options are granted to associates at an exercise price equal to the fair value as determined by the average high and low sales price reported on the Nasdaq Global Select Market for the grant date and are exercisable over 10 -year periods. The stock options generally vest ratably over a three -year period. In determining the share-based compensation amounts, we estimate the fair value of each option granted on the date of grant using a binomial option-pricing model. We make the following assumptions to develop the binomial option-pricing model as follows: • Weighted-average expected term is based on historical experience of similar awards with consideration for current exercise trends. • Expected volatility is based on our stock price over a historical period that approximates the expected term. • Dividend yield is determined by dividing the annualized per share dividend by the stock price on the date of grant. • Risk-free rates are the implied yield currently available on zero-coupon U.S. Treasury issues with a remaining term approximating the expected term. The following weighted average assumptions were used in determining fair value for option grants issued: 2018 2017 2016 Weighted-average expected term 7-8 years 8 years 8 years Expected volatility 15.04-15.10% 16.95% 24.88-25.75% Dividend yield 2.98% 2.83% 2.58-3.12% Risk-free rates 2.77-2.83% 2.33% 1.44-1.60% Weighted-average fair value of options granted during the period $9.87 $10.79 $13.21 Below is a summary of option information for the year 2018 : (Dollars in millions, except exercise price. Shares in thousands) Shares Weighted- exercise price Aggregate Weighted-average Outstanding option shares at January 1, 2018 3,066 $ 49.14 Granted 757 71.19 Exercised (384 ) 37.00 Forfeited or expired (165 ) 40.90 Outstanding option shares at December 31, 2018 3,274 56.08 $ 68 6.08 years Options exercisable at end of period 2,004 $ 47.09 $ 60 4.47 years Cash received from the exercise of options was $9 million , $13 million and $21 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. We acquired 69,649 , 96,030 and 186,097 shares totaling $5 million , $7 million and $13 million , respectively, from associates in consideration for option exercises during 2018 , 2017 and 2016 . The weighted-average remaining contractual life for options expected to vest as of December 31, 2018 , was 8.62 years . Under all active shareholder approved plans, a total of 17.3 million shares were authorized to be granted. At December 31, 2018 , 9.7 million shares remained available for future issuance under the plans. During 2018 , we granted 14,600 shares of common stock to our directors for 2017 board service fees. Restricted Stock Units Service-based restricted stock units granted to associates are valued at fair value of the shares on the date of grant less the present value of the dividends that holders of restricted stock units do not receive on the shares underlying the restricted stock units during the vesting period. Service-based restricted stock units generally cliff vest three years after the date of grant. We also grant restricted stock units which vest on a three year ratable vesting schedule. Service-based restricted stock units vested during the year had an intrinsic value of $24 million for 2018 and $23 million for the years 2017 and 2016 . We have performance-based awards that vest on the first day of March after a three -calendar-year performance period. These awards vest according to the level of three -year total shareholder return achieved compared with a peer group over a three -year performance period with payouts ranging from 0 to 200 percent for awards granted in 2018, 2017 and 2016. Three -year total shareholder return is calculated by using annualized total return of a stock to an investor due to capital gain appreciation plus reinvestment of all dividends. For the three-year performance period ended December 31, 2018, our total shareholder return exceeded four of our nine peers. We expect payout of these shares at the threshold level to occur in March of 2019. During 2018, we issued 80,666 shares of performance-based restricted stock units at the target-level performance hurdle for the three-year performance period ended December 31, 2017, as our total shareholder return exceeded five of nine peers in our 2015 peer group. We issued 87,228 shares of performance-based restricted stock units during 2017 at the target-level performance hurdle for the three -year performance period ended December 31, 2016, as we achieved a three -year total shareholder return that exceeded five of nine peers in our 2014 peer group. Performance-based awards vested during the year had an intrinsic value of $6 million , $7 million and $6 million for the years ended December 31, 2018, 2017 and 2016, respectively. These performance-based awards are valued using a Monte-Carlo valuation on the date of grant, which uses a risk-neutral framework to model future stock price movements based upon the risk-free rate of return, the volatility of each peer and the pairwise correlations of each peer being modeled. Compensation cost is recognized regardless of whether the market-based performance objective has been satisfied. We make assumptions to develop the Monte-Carlo model as follows: • Correlation coefficients are based upon the stock price data used to calculate the historical volatilities. The correlation coefficients are used to model the way the price of each entity's stock tends to move in relation to each other. • Expected volatility is based on each company's historical volatility using daily stock price observations with the period commensurate with the performance measurement period. • Dividend yield has been modeled assuming dividends are reinvested in additional shares of the issuing entity on the ex-dividend date during the performance period. • Risk-free rates are equal to the yield, as of the measurement date, of the zero-coupon U.S. Treasury bill that is commensurate with the performance measurement period. The following assumptions were used in determining fair value for performance-based grants issued: 2018 2017 2016 Expected term 2.89 years 2.89 years 2.44-2.88 years Expected volatility 16.01-26.32% 15.75-28.35% 15.42-33.64% Dividend yield 2.81% 2.83% 2.58-3.12% Risk-free rates 2.22% 1.44% 0.77-0.87% Below is a summary of service-based and performance-based share information, assuming a target payout for performance-based shares, for the year 2018 : (Shares in thousands) Service-based Weighted- Performance-based Weighted- Nonvested at January 1, 2018 843 $ 56.16 206 $ 53.35 Granted 314 65.31 57 63.29 Vested (323 ) 49.23 (81 ) 45.73 Forfeited or canceled (21 ) 61.44 — — Nonvested at December 31, 2018 813 62.31 182 59.83 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We operate primarily in two industries, property casualty insurance and life insurance. Our chief operating decision maker regularly reviews our reporting segments to make decisions about allocating resources and assessing performance. Our reporting segments are: • Commercial lines insurance • Personal lines insurance • Excess and surplus lines insurance • Life insurance • Investments We report as Other the noninvestment operations of the parent company and its noninsurer subsidiary, CFC Investment Company and Cincinnati Re, our reinsurance assumed operations. Revenues come primarily from unaffiliated customers: • All four insurance segments record revenues from insurance premiums earned. • Fee revenues for the commercial, personal and excess and surplus insurance segments primarily represent installment fees. Fee revenues for the life insurance segment represent separate account investment management fees. • Our investments’ revenues consist of pretax net investment income and realized investment gains and losses. • Other revenues are primarily finance income and earned premiums of Cincinnati Re. Income or loss before income taxes for each segment is reported based on the nature of that business area’s operations: • Income before income taxes for the insurance segments is defined as underwriting profit or loss. ◦ For commercial lines, personal lines and excess and surplus lines insurance segments, we calculate underwriting profit or loss as premiums earned and fee revenue minus loss and loss expenses and underwriting expenses incurred. ◦ For the life insurance segment, we calculate underwriting profit or loss as premiums earned and fee revenue, minus contract holders’ benefits and expenses incurred, plus investment interest credited to contract holders. • Income before income taxes for the investments segment is net investment income plus realized investment gains and losses for investments of the entire company, minus investment interest credited to contract holders of the life insurance segment. • Loss before income taxes for the Other category is primarily due to interest expense from debt of the parent company, operating expenses of our headquarters and premiums earned minus loss and loss expenses and underwriting expenses of Cincinnati Re. Identifiable assets are used by each segment in its operations. We do not separately report the identifiable assets for the commercial, personal or excess and surplus lines segments because we do not use that measure to analyze the segments. We include all investment assets, regardless of ownership, in the investments segment. Segment information is summarized in the following table: (Dollars in millions) Years ended December 31, 2018 2017 2016 Revenues: Commercial lines insurance Commercial casualty $ 1,075 $ 1,072 $ 1,050 Commercial property 920 903 867 Commercial auto 664 634 594 Workers' compensation 324 335 354 Other commercial 235 221 224 Commercial lines insurance premiums 3,218 3,165 3,089 Fee revenues 5 5 5 Total commercial lines insurance 3,223 3,170 3,094 Personal lines insurance Personal auto 614 582 543 Homeowner 563 518 486 Other personal 159 141 132 Personal lines insurance premiums 1,336 1,241 1,161 Fee revenues 5 5 4 Total personal lines insurance 1,341 1,246 1,165 Excess and surplus lines insurance 234 209 183 Fee revenues 1 1 1 Total excess and surplus lines insurance 235 210 184 Life insurance premiums 250 232 228 Fee revenues 4 5 5 Total life insurance 254 237 233 Investments Investment income, net of expenses 619 609 595 Investment gains and losses, net (402 ) 148 124 Total investment revenue 217 757 719 Other Cincinnati Re insurance premiums 132 107 49 Other 5 5 5 Total other revenue 137 112 54 Total revenues $ 5,407 $ 5,732 $ 5,449 Income (loss) before income taxes: Insurance underwriting results Commercial lines insurance $ 151 $ 119 $ 184 Personal lines insurance (20 ) (32 ) (12 ) Excess and surplus lines insurance 63 61 62 Life insurance 8 (1 ) 1 Investments 121 664 629 Other (72 ) (81 ) (52 ) Total income before income taxes $ 251 $ 730 $ 812 December 31, December 31, Identifiable assets: 2018 2017 Property casualty insurance $ 3,285 $ 2,863 Life insurance 1,424 1,409 Investments 16,741 17,112 Other 485 459 Total $ 21,935 $ 21,843 |
Quarterly Supplementary Data
Quarterly Supplementary Data | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Supplementary Data | Quarterly Supplementary Data This table includes unaudited quarterly financial information for the years ended December 31, 2018 and 2017 : (Dollars in millions, except per share data) Quarter 1st 2nd 3rd 4th Full year 2018 Revenues $ 1,224 $ 1,558 $ 1,915 $ 710 $ 5,407 Income (loss) before income taxes (50 ) 264 618 (581 ) 251 Net income (loss) (31 ) 217 553 (452 ) 287 Net income (loss) per common share—basic (0.19 ) 1.33 3.40 (2.78 ) 1.76 Net income (loss) per common share—diluted (0.19 ) 1.32 3.38 (2.78 ) 1.75 2017 Revenues $ 1,523 $ 1,386 $ 1,412 $ 1,411 $ 5,732 Income before income taxes 276 128 129 197 730 Net income 201 100 102 642 1,045 Net income per common share—basic 1.22 0.61 0.62 3.92 6.36 Net income per common share—diluted 1.21 0.60 0.61 3.88 6.29 The sum of the quarterly reported per share amounts may not equal the full year as each is computed independently. Revenues including investment gains and losses, which are integral to our financial results over the long term, may cause this value to fluctuate substantially because we have substantial discretion in the timing of investment sales. Also, applicable accounting standards require us to recognize gains and losses from certain changes in fair values of securities and embedded derivatives without actual realization of those gains and losses. |
Summary Of Investments Other Th
Summary Of Investments Other Than Investments In Related Parties | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Summary Of Investments Other Than Investments In Related Parties | Schedule I Cincinnati Financial Corporation and Subsidiaries Summary of Investments - Other Than Investments in Related Parties (Dollars in millions) At December 31, 2018 Type of investment Cost or amortized cost Fair value Balance sheet Fixed maturities: States, municipalities and political subdivisions: The Cincinnati Insurance Company $ 3,245 $ 3,282 $ 3,282 The Cincinnati Casualty Company 181 182 182 The Cincinnati Indemnity Company 44 44 44 The Cincinnati Life Insurance Company 302 310 310 The Cincinnati Specialty Underwriters Insurance Company 459 466 466 CSU Producer Resources Inc. 1 1 1 Cincinnati Financial Corporation 19 19 19 Total 4,251 4,304 4,304 United States government: The Cincinnati Insurance Company 64 64 64 The Cincinnati Casualty Company 2 2 2 The Cincinnati Indemnity Company 1 1 1 Total 67 67 67 Government-sponsored enterprises: The Cincinnati Insurance Company 5 6 6 The Cincinnati Life Insurance Company 311 304 304 Total 316 310 310 Foreign government: The Cincinnati Insurance Company 10 10 10 Total 10 10 10 All other corporate bonds: The Cincinnati Insurance Company 2,861 2,860 2,860 The Cincinnati Casualty Company 112 112 112 The Cincinnati Indemnity Company 31 32 32 The Cincinnati Specialty Underwriters Insurance Company 158 157 157 The Cincinnati Life Insurance Company 2,820 2,820 2,820 CSU Producer Resources Inc. 1 1 1 Cincinnati Financial Corporation 16 16 16 Total 5,999 5,998 5,998 Total fixed maturities $ 10,643 $ 10,689 $ 10,689 Schedule I (continued) Cincinnati Financial Corporation and Subsidiaries Summary of Investments - Other Than Investments in Related Parties (Dollars in millions) At December 31, 2018 Type of investment Cost or amortized cost Fair value Balance sheet Equity securities: Common equities: The Cincinnati Insurance Company $ 1,731 $ 3,216 $ 3,216 The Cincinnati Casualty Company 58 108 108 The Cincinnati Indemnity Company 17 26 26 The Cincinnati Specialty Underwriters Insurance Company 91 138 138 CSU Producer Resources Inc. 17 21 21 Cincinnati Financial Corporation 1,281 2,233 2,233 Total 3,195 5,742 5,742 Nonredeemable preferred equities: The Cincinnati Insurance Company 167 169 169 The Cincinnati Life Insurance Company 5 8 8 Cincinnati Financial Corporation 1 1 1 Total 173 178 178 Total equity securities $ 3,368 $ 5,920 $ 5,920 Other invested assets: Policy loans: The Cincinnati Life Insurance Company $ 33 — $ 33 Private equity: Cincinnati Financial Corporation (1) 30 — 31 The Cincinnati Insurance Company (1) 20 — 20 The Cincinnati Life Insurance Company (1) 10 — 9 Real estate: The Cincinnati Life Insurance Company (1) 24 — 24 Cincinnati Financial Corporation (1) 6 — 6 Total other invested assets $ 123 — $ 123 Total investments $ 14,134 — $ 16,732 |
Condensed Financial Statements
Condensed Financial Statements Of Parent Company | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Statements Of Parent Company | Schedule II Cincinnati Financial Corporation (parent company only) Condensed Balance Sheets (Dollars in millions) At December 31, 2018 2017 Assets Investments Fixed maturities, at fair value (amortized cost: 2018—$35; 2017—$35) $ 35 $ 37 Equity securities, at fair value (cost: 2018—$1,282; 2017—$1,159) 2,234 2,275 Other invested assets 36 35 Total investments 2,305 2,347 Cash and cash equivalents 209 199 Equity in net assets of subsidiaries 6,152 6,542 Investment income receivable 6 8 Land, building and equipment, net, for company use (accumulated depreciation: 137 130 Income tax receivable 1 15 Other assets 48 52 Due from subsidiaries 106 107 Total assets $ 8,964 $ 9,400 Liabilities Dividends declared but unpaid $ 86 $ 82 Deferred federal income tax 198 234 Long-term debt 788 787 Other liabilities 59 54 Total liabilities 1,131 1,157 Shareholders' Equity Common stock 397 397 Paid-in capital 1,281 1,265 Retained earnings 7,625 5,180 Accumulated other comprehensive income 22 2,788 Treasury stock at cost (1,492 ) (1,387 ) Total shareholders' equity 7,833 8,243 Total liabilities and shareholders' equity $ 8,964 $ 9,400 This condensed financial information should be read in conjunction with the Consolidated Financial Statements and Notes included in Part II, Item 8. Schedule II (continued) Cincinnati Financial Corporation (parent company only) Condensed Statements of Income (Dollars in millions) Years ended December 31, 2018 2017 2016 Revenues Investment income, net of expenses $ 65 $ 62 $ 56 Investment gains and losses, net (108 ) 28 27 Other revenue 15 15 15 Total revenues (28 ) 105 98 Expenses Interest expense 52 52 52 Other expenses 31 28 27 Total expenses 83 80 79 Income (Loss) Before Income Taxes and Earnings of Subsidiaries (111 ) 25 19 Benefit for income taxes (31 ) (161 ) (6 ) Net Income (Loss) Before Earnings of Subsidiaries (80 ) 186 25 Increase in equity of subsidiaries 367 859 566 Net Income $ 287 $ 1,045 $ 591 This condensed financial information should be read in conjunction with the Consolidated Financial Statements and Notes included in Part II, Item 8. Schedule II (continued) Cincinnati Financial Corporation (parent company only) Condensed Statements of Comprehensive Income (Dollars in millions) Years ended December 31, 2018 2017 2016 Net Income $ 287 $ 1,045 $ 591 Other Comprehensive Income (Loss), Before Tax Unrealized gains and (losses) on investments available for sale (110 ) 391 221 Unrealized gains and (losses) on investments held by subsidiaries (631 ) 672 434 Reclassification adjustment for (gains) and losses included in net income 108 (28 ) (27 ) Reclassification adjustment for (gains) included in net income on subsidiaries 294 (120 ) (97 ) Unrealized (losses) and gains on other — (2 ) (6 ) Unrealized gains and (losses) on other subsidiaries 9 1 (4 ) Unrealized gains and (losses) on investments available for sale, investments held by subsidiaries and other (330 ) 914 521 Amortization of pension actuarial gains (losses) and prior service cost (4 ) 14 16 Other comprehensive income (loss) before tax (334 ) 928 537 Income taxes on above of other comprehensive income (loss) (71 ) 325 188 Other comprehensive income (loss), net of tax (263 ) 603 349 Comprehensive Income $ 24 $ 1,648 $ 940 This condensed financial information should be read in conjunction with the Consolidated Financial Statements and Notes included in Part II, Item 8. Schedule II (continued) Cincinnati Financial Corporation (parent company only) Condensed Statements of Cash Flows (Dollars in millions) Years ended December 31, 2018 2017 2016 Cash Flows From Operating Activities Net income $ 287 $ 1,045 $ 591 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 7 7 6 Investment gains and losses, net 114 (28 ) (27 ) Dividends from subsidiaries 500 465 475 Changes in: Increase in equity of subsidiaries (367 ) (859 ) (566 ) Investment income receivable 2 — (2 ) Current federal income taxes 14 (5 ) (4 ) Deferred income tax (35 ) (150 ) 8 Other assets (17 ) (20 ) (4 ) Other liabilities 3 15 (1 ) Intercompany receivable for operations 19 13 20 Net cash provided by operating activities 527 483 496 Cash Flows From Investing Activities Sale of fixed maturities 1 — — Call or maturity of fixed maturities 19 14 5 Sale of equity securities 131 230 135 Purchase of fixed maturities (17 ) (2 ) — Purchase of equity securities (177 ) (293 ) (175 ) Investment in buildings and equipment (12 ) (3 ) (2 ) Change in other invested assets, net (11 ) — 6 Net cash used in investing activities (66 ) (54 ) (31 ) Cash Flows From Financing Activities Payment of cash dividends to shareholders (336 ) (400 ) (306 ) Shares acquired - share repurchase authorization (125 ) (92 ) (39 ) Proceeds from stock options exercised 9 13 21 Other 1 1 1 Net cash used in financing activities (451 ) (478 ) (323 ) Net change in cash and cash equivalents 10 (49 ) 142 Cash and cash equivalents at beginning of year 199 248 106 Cash and cash equivalents at end of year $ 209 $ 199 $ 248 This condensed financial information should be read in conjunction with the Consolidated Financial Statements and Notes included in Part II, Item 8. |
Supplementary Insurance Informa
Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2018 | |
Supplementary Insurance Information [Abstract] | |
Supplementary Insurance Information | Schedule III Cincinnati Financial Corporation and Subsidiaries Supplementary Insurance Information (Dollars in millions) Years ended December 31, 2018 2017 2016 Deferred policy acquisition costs: Commercial lines insurance $ 291 $ 284 $ 271 Personal lines insurance 126 121 110 Excess and surplus lines insurance 21 17 16 Cincinnati Re 26 16 11 Total property casualty insurance 464 438 408 Life insurance 274 232 229 Total $ 738 $ 670 $ 637 Gross future policy benefits, losses, claims and expense losses: Commercial lines insurance $ 4,466 $ 4,236 $ 4,179 Personal lines insurance 679 587 569 Excess and surplus lines insurance 298 264 241 Cincinnati Re 203 132 46 Total property casualty insurance 5,646 5,219 5,035 Life insurance 2,802 2,753 2,693 Total (1) $ 8,448 $ 7,972 $ 7,728 Gross unearned premiums: Commercial lines insurance $ 1,576 $ 1,548 $ 1,510 Personal lines insurance 725 683 629 Excess and surplus lines insurance 123 105 93 Cincinnati Re 91 67 74 Total property casualty insurance 2,515 2,403 2,306 Life insurance 1 1 1 Total (1) $ 2,516 $ 2,404 $ 2,307 Other policy claims and benefits payable: Commercial lines insurance $ — $ — $ — Personal lines insurance — — — Excess and surplus lines insurance — — — Cincinnati Re — — — Total property casualty insurance — — — Life insurance 38 30 28 Total (1) $ 38 $ 30 $ 28 Earned premiums: Commercial lines insurance $ 3,218 $ 3,165 $ 3,089 Personal lines insurance 1,336 1,241 1,161 Excess and surplus lines insurance 234 209 183 Cincinnati Re 132 107 49 Total property casualty insurance 4,920 4,722 4,482 Life insurance 250 232 228 Total $ 5,170 $ 4,954 $ 4,710 Schedule III (continued) Cincinnati Financial Corporation and Subsidiaries Supplementary Insurance Information (Dollars in millions) Years ended December 31, 2018 2017 2016 Investment income, net of expenses: Commercial lines insurance $ — $ — $ — Personal lines insurance — — — Excess and surplus lines insurance — — — Cincinnati Re — — — Total property casualty insurance (2) 401 392 384 Life insurance 153 155 155 Total $ 554 $ 547 $ 539 Benefits, claims losses and settlement expenses: Commercial lines insurance $ 2,049 $ 2,042 $ 1,928 Personal lines insurance 972 918 840 Excess and surplus lines insurance 104 86 68 Cincinnati Re 98 92 25 Total property casualty insurance 3,223 3,138 2,861 Life insurance 267 252 246 Total $ 3,490 $ 3,390 $ 3,107 Amortization of deferred policy acquisition costs: Commercial lines insurance $ 608 $ 590 $ 570 Personal lines insurance 242 225 209 Excess and surplus lines insurance 39 35 31 Cincinnati Re 18 17 10 Total property casualty insurance 907 867 820 Life insurance 39 46 43 Total (3) $ 946 $ 913 $ 863 Underwriting, acquisition and insurance expenses: Commercial lines insurance $ 415 $ 419 $ 412 Personal lines insurance 147 135 128 Excess and surplus lines insurance 29 28 23 Cincinnati Re 24 18 6 Total property casualty insurance 615 600 569 Life insurance 36 33 33 Total (3) $ 651 $ 633 $ 602 Net written premiums: Commercial lines insurance $ 3,245 $ 3,202 $ 3,122 Personal lines insurance 1,378 1,294 1,198 Excess and surplus lines insurance 249 219 189 Cincinnati Re 158 125 71 Total property casualty insurance 5,030 4,840 4,580 Accident health insurance 3 3 2 Total $ 5,033 $ 4,843 $ 4,582 Notes to Schedule III: (1) The sum of gross future policy benefits, losses, claims and expense losses, gross unearned premium and other policy claims and benefits payable is equal to the sum of Loss and loss expense reserves, Life policy reserves and investment contract reserves and Unearned premiums reported in the company’s consolidated balance sheets. (2) This segment information is not regularly allocated to segments and reviewed by company management in making decisions about resources to be allocated to the segments or to assess their performance. (3) The sum of amortization of deferred policy acquisition costs and other underwriting and insurance expenses is equal to Underwriting, acquisition and insurance expenses in the consolidated statements of income. |
Reinsurance - Schedule IV
Reinsurance - Schedule IV | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Text Block] | Schedule IV Cincinnati Financial Corporation and Subsidiaries Reinsurance (Dollars in millions) Years ended December 31, 2018 2017 2016 Gross amounts: Life insurance in force $ 104,726 $ 99,888 $ 95,533 Earned premiums Commercial lines insurance $ 3,314 $ 3,258 $ 3,180 Personal lines insurance 1,372 1,275 1,195 Excess and surplus lines insurance 245 219 192 Cincinnati Re — — — Total property casualty insurance 4,931 4,752 4,567 Life insurance 320 300 290 Total $ 5,251 $ 5,052 $ 4,857 Ceded amounts to other companies: Life insurance in force $ 38,584 $ 38,711 $ 38,724 Earned premiums Commercial lines insurance $ 104 $ 99 $ 98 Personal lines insurance 37 35 35 Excess and surplus lines insurance 11 10 9 Cincinnati Re 8 18 20 Total property casualty insurance 160 162 162 Life insurance 70 68 62 Total $ 230 $ 230 $ 224 Assumed amounts from other companies: Life insurance in force $ — $ — $ — Earned premiums Commercial lines insurance $ 8 $ 6 $ 7 Personal lines insurance 1 1 1 Excess and surplus lines insurance — — — Cincinnati Re 140 125 69 Total property casualty insurance 149 132 77 Life insurance — — — Total $ 149 $ 132 $ 77 Net amounts: Life insurance in force $ 66,142 $ 61,177 $ 56,808 Earned premiums Commercial lines insurance $ 3,218 $ 3,165 $ 3,089 Personal lines insurance 1,336 1,241 1,161 Excess and surplus lines insurance 234 209 183 Cincinnati Re 132 107 49 Total property casualty insurance 4,920 4,722 4,482 Life insurance 250 232 228 Total $ 5,170 $ 4,954 $ 4,710 Percentage of amounts assumed to net: Life insurance in force — % — % — % Earned premiums Commercial lines insurance 0.3 % 0.2 % 0.2 % Personal lines insurance 0.1 0.1 0.1 Excess and surplus lines insurance — — — Cincinnati Re 106.1 116.1 140.8 Total property casualty insurance 3.0 2.8 1.7 Life insurance — — — Total 2.9 2.7 1.6 |
Valuation And Qualifying Accoun
Valuation And Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation And Qualifying Accounts | Schedule V Cincinnati Financial Corporation and Subsidiaries Valuation and Qualifying Accounts (Dollars in millions) At December 31, 2018 2017 2016 Allowance for doubtful receivables: Beginning balance, January 1 $ 6 $ 5 $ 4 Additions charged to costs and expenses 6 6 5 Deductions (6 ) (5 ) (4 ) Ending balance, December 31 $ 6 $ 6 $ 5 |
Supplementary Information Conce
Supplementary Information Concerning Property Casualty Insurance Operations | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Information for Property, Casualty Insurance Underwriters [Abstract] | |
Supplementary Information Concerning Property Casualty Insurance Operations | Schedule VI Cincinnati Financial Corporation and Subsidiaries Supplementary Information Concerning Property Casualty Insurance Operations (Dollars in millions) Years ended December 31, 2018 2017 2016 Deferred policy acquisition costs: Commercial lines insurance $ 291 $ 284 $ 271 Personal lines insurance 126 121 110 Excess and surplus lines insurance 21 17 16 Cincinnati Re 26 16 11 Total $ 464 $ 438 $ 408 Reserves for unpaid claims and claim adjustment expenses: Commercial lines insurance $ 4,466 $ 4,236 $ 4,179 Personal lines insurance 679 587 569 Excess and surplus lines insurance 298 264 241 Cincinnati Re 203 132 46 Total $ 5,646 $ 5,219 $ 5,035 Reserve discount deducted $ — $ — $ — Gross unearned premiums: Commercial lines insurance $ 1,576 $ 1,548 $ 1,510 Personal lines insurance 725 683 629 Excess and surplus lines insurance 123 105 93 Cincinnati Re 91 67 74 Total $ 2,515 $ 2,403 $ 2,306 Earned premiums: Commercial lines insurance $ 3,218 $ 3,165 $ 3,089 Personal lines insurance 1,336 1,241 1,161 Excess and surplus lines insurance 234 209 183 Cincinnati Re 132 107 49 Total $ 4,920 $ 4,722 $ 4,482 Investment income, net of expenses: Commercial lines insurance $ — $ — $ — Personal lines insurance — — — Excess and surplus lines insurance — — — Cincinnati Re — — — Total (1) $ 401 $ 392 $ 384 Note to Schedule VI: (1) This segment information is not regularly allocated to segments and not reviewed by company management in making decisions about resources to be allocated to the segments or to assess their performance. Schedule VI (continued) Cincinnati Financial Corporation and Subsidiaries Supplementary Information Concerning Property Casualty Insurance Operations (Dollars in millions) Years ended December 31, 2018 2017 2016 Loss and loss expenses incurred related to current accident year: Commercial lines insurance $ 2,206 $ 2,115 $ 2,057 Personal lines insurance 960 932 844 Excess and surplus lines insurance 128 115 102 Cincinnati Re 96 95 26 Total $ 3,390 $ 3,257 $ 3,029 Loss and loss expenses incurred related to prior accident years: Commercial lines insurance $ (157 ) $ (73 ) $ (129 ) Personal lines insurance 13 (14 ) (4 ) Excess and surplus lines insurance (24 ) (29 ) (34 ) Cincinnati Re 1 (3 ) (1 ) Total $ (167 ) $ (119 ) $ (168 ) Amortization of deferred policy acquisition costs: Commercial lines insurance $ 608 $ 590 $ 570 Personal lines insurance 242 225 209 Excess and surplus lines insurance 39 35 31 Cincinnati Re 18 17 10 Total $ 907 $ 867 $ 820 Paid loss and loss expenses: Commercial lines insurance $ 1,816 $ 1,866 $ 1,675 Personal lines insurance 913 898 771 Excess and surplus lines insurance 74 61 55 Cincinnati Re 44 18 2 Total $ 2,847 $ 2,843 $ 2,503 Net written premiums: Commercial lines insurance $ 3,245 $ 3,202 $ 3,122 Personal lines insurance 1,378 1,294 1,198 Excess and surplus lines insurance 249 219 189 Cincinnati Re 158 125 71 Total $ 5,030 $ 4,840 $ 4,580 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations Cincinnati Financial Corporation (CFC) operates through our insurance group and two complementary subsidiary companies. The Cincinnati Insurance Company leads our insurance group that also includes two subsidiaries: The Cincinnati Casualty Company and The Cincinnati Indemnity Company. This group markets a broad range of standard market commercial and personal policies. The group focuses on delivery of quality customer service to our select group of 1,757 independent insurance agencies with 2,344 reporting locations across 42 states. Other subsidiaries of The Cincinnati Insurance Company include The Cincinnati Life Insurance Company, which markets life insurance and fixed annuities, and The Cincinnati Specialty Underwriters Insurance Company, which offers excess and surplus lines property casualty insurance products. The Cincinnati Insurance Company also conducts the business of our reinsurance assumed operations, Cincinnati Re SM . The two CFC complementary subsidiaries are CSU Producer Resources Inc., which provides insurance brokerage services to our independent agencies so their clients can access our excess and surplus lines insurance products, and CFC Investment Company, which offers commercial leasing and financing services to our agents, their clients and other customers. |
Basis of Presentation | Basis of Presentation Our consolidated financial statements include the accounts of the parent and its wholly owned subsidiaries and are presented in conformity with accounting principles generally accepted in the United States of America (GAAP). All intercompany balances and transactions have been eliminated in consolidation. The preparation of the consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect amounts reported in the consolidated financial statements and accompanying notes. Our actual results could differ from those estimates. |
Investments | Investments Our portfolio investments are primarily in publicly traded fixed-maturity and equity security investments. Fixed-maturity investments (taxable bonds, tax-exempt bonds, redeemable preferred equities and commercial mortgage- backed securities) classified as available for sale and equity investments (common and nonredeemable preferred equities) are recorded at fair value in the consolidated financial statements. Beginning January 1, 2018, changes in fair value of equity securities are now reported in net income instead of other comprehensive income as stated below under 'Adopted Accounting Updates'. The number of fixed-maturity securities with fair value below 100 percent of amortized cost can be expected to fluctuate as interest rates rise or fall. Because of our strong capital and long-term investment horizon, our general intent is to hold fixed-maturity investments until maturity, regardless of short-term fluctuations in fair values. Impairment charges for fixed maturities are recorded for other-than-temporary declines in value if fair value is below amortized cost and, in the asset impairment committee’s judgment, the fair value is not expected to be recouped within a designated recovery period. Our invested asset impairment policy also states that fixed maturities below their amortized cost that the company (1) intends to sell or (2) more likely than not will be required to sell before recovery of their amortized cost basis are deemed to be other-than-temporarily impaired (OTTI). The amortized cost of any such securities is reduced to fair value as the new cost basis, and a realized loss is recorded in the period in which it is recognized. When these two criteria are not met, and the company believes that full collection of interest and/or principal is not likely, we determine the net present value of future cash flows by using the effective interest rate implicit in the security at the date of acquisition as the discount rate and compare that amount with the amortized cost and fair value of the security. The difference between the net present value of the expected future cash flows and amortized cost of the security is considered a credit loss and recognized as a realized loss in the period in which it occurred. The difference between the fair value and the net present value of the cash flows of the security, the noncredit loss, is recognized in other comprehensive income as an unrealized loss. We had no fixed-maturity securities with a noncredit loss for the years ended 2018 , 2017 and 2016 . We include the noncredit portion of fixed-maturity OTTI charges and unrealized gains and losses on fixed-maturity investments, net of taxes, in shareholders’ equity as accumulated other comprehensive income (AOCI). Investment gains and losses are recognized in net income based on the trade date accounting method. Included within our other invested assets were $33 million and $31 million of life policy loans, $60 million and $35 million of private equity investments and $30 million and $37 million of real estate through direct property ownership and development projects in the United States at December 31, 2018 and 2017 , respectively. Life policy loans are carried at the receivable value. The private equity investments provide their financial statements to us and generally report investments on their balance sheets at fair value. We use the equity method of accounting for private equity and real estate development investments. Investment income, net of expenses, consists mainly of interest and dividends. We record interest on an accrual basis and record dividends at the ex-dividend date. We amortize premiums and discounts on fixed-maturity securities using the effective interest method over the expected life of the security. |
Fair Value Disclosures | Fair Value Disclosures Fair value is defined as the exit price or the amount that would be (1) received to sell an asset or (2) paid to transfer a liability in an orderly transaction between marketplace participants at the measurement date. When determining an exit price, we rely upon observable market data whenever possible. We primarily base fair value for investments in equity and fixed-maturity securities (including redeemable preferred stock and assets held in separate accounts) on quoted market prices or on prices from the company’s nationally recognized pricing vendor, an outside resource that supplies global securities pricing, dividend, corporate action and descriptive information to support fund pricing, securities operations, research and portfolio management. The company obtains and reviews the pricing service’s valuation methodologies and related inputs and validates these prices by replicating a sample across each asset class using a discounted cash flow model. When a price is not available from these sources, as in the case of securities that are not publicly traded, we determine the fair value using various inputs including quotes from independent brokers. The fair value of investments not priced by the company’s nationally recognized pricing vendor is less than 1 percent of the fair value of our total investment portfolio. For the purpose of ASC 825 disclosure, we estimate the fair value of our long-term senior notes on market pricing of similar debt instruments that are actively trading. We estimate the fair value of our note payable on the year-end outstanding balance because it is short term and tied to a variable interest rate. We estimate the fair value of liabilities for investment contracts and annuities using discounted cash flow calculations across a wide range of economic interest rate scenarios with a provision for our nonperformance risk. We estimate the fair value for policyholder loans on insurance contracts using a discounted cash flow model. Determination of fair value for structured settlements assumes the discount rates used to calculate the present value of expected payments are the risk-free spot rates plus an A3 rated bond spread for financial issuers at December 31, 2018 , to account for nonperformance risk. See Note 3, Fair Value Measurements, for further details. |
Cash And Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents are highly liquid instruments that include liquid debt instruments with original maturities of less than three months. These are carried at cost, which approximates fair value. |
Property Casualty Insurance | Property Casualty Insurance The consolidated property casualty companies actively write property casualty insurance through independent agencies in 42 states. Our 10 largest states generated 58.4 percent and 59.7 percent of total earned premiums in 2018 and 2017 , respectively. Ohio, our largest state, accounted for 15.9 percent and 16.2 percent of total earned premiums in 2018 and 2017 , respectively. Illinois, Georgia, Indiana, North Carolina and Pennsylvania each accounted for between 5 percent and 6 percent of total earned premiums in 2018 . Our largest single agency relationship accounted for approximately 0.8 percent of our total property casualty earned premiums in 2018 . No aggregate agency relationship locations under a single ownership structure accounted for more than 4 percent of our total property casualty earned premiums in 2018 . We record revenues for installment charges as fee revenues in the consolidated statements of income. Property casualty written premiums are deferred and recorded as earned premiums on a pro rata basis over the terms of the policies. We record as unearned premiums the portion of written premiums that applies to unexpired policy terms. Expenses associated with successfully acquiring insurance policies – commissions, premium taxes and underwriting costs – are deferred and amortized over the terms of the policies. We assess recoverability of deferred acquisition costs at a level consistent with the way we acquire, service and manage insurance policies and measure profitability. We analyze our acquisition cost assumptions to reflect actual experience, and we evaluate potential premium deficiencies. Certain property casualty policies are not entered into policy underwriting systems as of the effective date of coverage. An estimate is recorded for these unprocessed written premiums. A large majority of the estimate is unearned and has no material impact on earned premiums. Premiums receivable are reviewed for impairment on a quarterly basis. We maintain an allowance for uncollectible premiums. We establish reserves to cover the expected cost of claims, losses and expenses related to investigating, processing and resolving claims. Although the appropriate amount of reserves is inherently uncertain, we base our decisions on past experience and current facts. Reserves are based on claims reported prior to the end of the year and estimates of unreported claims. We regularly review and update reserves using the most current information available. Any resulting adjustments are reflected in current calendar year insurance losses and policyholder benefits. We estimate that we may recover some of our costs through salvage and subrogation. |
Policyholder Dividends | Policyholder Dividends Certain workers’ compensation policies include the possibility of a policyholder earning a return of a portion of premium in the form of a policyholder dividend. The dividend generally is calculated by determining the profitability of a policy year along with the associated premium. We reserve for all probable future policyholder dividend payments. We record policyholder dividends as other underwriting expenses. |
Life Insurance | Life Insurance We offer several types of life insurance and we account for each according to the duration of the contract. Short-duration life and health contracts are written to cover claims that arise during a short, fixed term of coverage. We generally have the right to change the amount of premium charged or cancel the coverage at the end of each contract term. We record premiums for short-duration life and health contracts similarly to property casualty contracts. Long-duration contracts are written to provide coverage for an extended period of time. Traditional long-duration contracts require policyholders to pay scheduled gross premiums, generally not less frequently than annually, over the term of the coverage. Premiums for these contracts, such as whole life insurance are recognized as revenue when due. Some traditional long-duration contracts, such as ten-pay whole life insurance, have premium payment periods shorter than the period over which coverage is provided. For these contracts, the excess of premium over the amount required to pay expenses and benefits is recognized over the term of the coverage rather than over the premium payment period. We establish a liability for traditional long-duration contracts as we receive premiums. The amount of this liability is the present value of future expenses and benefits less the present value of future net premiums. Net premium is the portion of gross premium required to provide for all expenses and benefits. We estimate future expenses and benefits and net premium using assumptions for expected expenses, mortality, morbidity, withdrawal rates and investment income. We include a provision for deviation, meaning we allow for some uncertainty in making our assumptions. We establish our assumptions when the contract is issued, and we generally maintain those assumptions for the life of the contract. We use both our own experience and industry experience, adjusted for historical trends, in arriving at our assumptions for expected mortality, morbidity and withdrawal rates. We use our own experience and historical trends for setting our assumption for expected expenses. We base our assumption for expected investment income on our own experience, adjusted for current and future economic conditions. We capitalize acquisition costs for traditional long-duration contracts. We charge these capitalized costs associated with successfully acquiring traditional long-duration contract insurance policies in proportion to premium revenue recognized. We use the same assumptions used in establishing the liability for the contract. We update our acquisition cost assumptions periodically to reflect actual experience, and we evaluate our deferred acquisition costs for recoverability. Universal life contracts are long-duration contracts for which contractual provisions are not fixed, unlike whole life insurance. Universal life contracts allow policyholders to vary the amount of premium, within limits, without our consent. However, we may vary the mortality, expense charges and the interest crediting rate, within limits, used to accumulate policy values. We do not record universal life premiums as revenue. Instead we recognize as revenue the mortality charges, administration charges and surrender charges when received. Some of our universal life contracts assess administration charges in the early years of the contract that are compensation for services we will provide in the later years of the contract. These administration charges are deferred and are recognized over the period when we provide those future services. We maintain a policy reserve liability equal to the policyholder account value. There is no provision for adverse deviation. Some of our universal life policies contain no-lapse guarantee provisions. For these policies, we establish a reserve in addition to the account balance, based on expected no-lapse guarantee benefits and expected policy assessments. We capitalize acquisition costs associated with successfully acquiring universal life long-duration contracts. We charge these capitalized costs to expenses over the term of coverage of the contract in accordance with the recognition of gross profit from the contract. When we charge deferred policy acquisition costs to expenses, we use assumptions based on our best estimates of long-term experience. We review and modify these assumptions on a regular basis. |
Separate Accounts | Separate Accounts We have issued universal life contracts with guaranteed minimum returns, referred to as bank-owned life insurance contracts (BOLIs). A BOLI is designed so the bank is the policy owner and the policy beneficiary. We legally segregate and record as separate accounts the assets and liabilities for some of our BOLIs, based on the specific contract provisions. We guarantee minimum investment returns, account values and death benefits for our separate account BOLIs. Our other BOLIs are general account products. We carry the assets of separate account BOLIs at fair value. The liabilities on separate account BOLIs primarily are the contract holders’ claims to the related assets and are carried at an amount equal to the contract holders’ account value. At December 31, 2018 , the current fair value of the contract holders’ account value exceeded the current fair value of the BOLI invested assets and cash by approximately $3 million . At December 31, 2017, the current fair value of the BOLI invested assets and cash exceeded the current fair value of the contract holders' account value by approximately $29 million . If the BOLI projected fair value were to fall below the value we guaranteed, a liability would be established with a corresponding charge to the company’s earnings. Generally, investment income and investment gains and losses of the separate accounts accrue directly to the contract holder, and we do not include them in the consolidated statements of income. Revenues and expenses related to separate accounts consist of contractual fees and mortality, surrender and expense risk charges. Also, each separate account BOLI includes a negotiated capital gain and loss sharing arrangement between the company and the bank. A percentage of each separate account’s investment gain and loss representing contract fees and assessments accrues to us and is transferred from the separate account to our general account and is recognized as revenue or expense. We record as revenues separate account investment management fees in fee revenues of the consolidated statements of income. |
Reinsurance | Reinsurance The Cincinnati Insurance Company offers reinsurance assumed for casualty and specialty (predominantly domestic exposure) and property (worldwide exposure). Treaties are written on a pro rata and excess of loss basis. We also continue to assume risk with limited exposure as a reinsurer for involuntary state pools. Written premium is recorded, net of contract specific retrocessions, on an ultimate estimate basis and earned on a pro rata basis over the coverage period of the treaty. Expenses are recorded as per contract terms and deferred over the earning period of the premium. We establish known loss reserves when reported. We establish reserves for losses in excess of reported activity in the form of IBNR. Reserves are established using actuarial analysis, which includes models and methods traditionally used for the types of exposures written. We establish reserves for event specific occurrences using modeling data and company specific data when available. We enter into other reinsurance transactions to reduce risk and uncertainty by buying property casualty reinsurance and retrocessional reinsurance as well as life reinsurance. Reinsurance and retrocessional reinsurance contracts do not relieve us from our obligation to policyholders, but rather help protect our financial strength to perform that duty. All of these ceded reinsurance contracts transfer the economic risk of loss. Premiums that we cede are deferred and recorded as earned premiums on a pro rata basis over the terms of the contracts. We estimate loss amounts recoverable from our reinsurers based on the reinsurance policy terms. Historically, our claims with reinsurers have been paid. We establish an insignificant allowance for uncollectible reinsurance. |
Income Taxes | Income Taxes We calculate deferred income tax liabilities and assets using tax rates in effect when temporary differences in the consolidated financial statement income and taxable income are expected to reverse. We recognize deferred income taxes for numerous temporary differences between our taxable income and consolidated financial statement income and other changes in shareholders’ equity. Such temporary differences relate primarily to unrealized gains and losses on investments and differences in the recognition of deferred acquisition costs, unearned premiums, insurance reserves and basis differences in the carrying value of investments held. We charge deferred income taxes associated with balances that impact other comprehensive income, such as unrealized appreciation and depreciation of fixed-maturity investments, to shareholders’ equity in accumulated other comprehensive income (AOCI). We charge deferred taxes associated with other differences to income. See Note 11, Income Taxes, for further detail on our uncertain tax positions and other income tax items. Although no Internal Revenue Service (IRS) penalties currently are accrued, if incurred, they would be recognized as a component of income tax expense. |
Earnings per Share | Earnings per Share Net income per common share is based on the weighted average number of common shares outstanding during each of the respective years. We calculate net income per common share (diluted) assuming the exercise or conversion of share‑based awards using the treasury stock method. |
Land, Building And Equipment | Land, Building and Equipment We record land at cost, and record building and equipment at cost less accumulated depreciation. Equipment held under capital leases also is classified as property and equipment with the related lease obligations recorded as liabilities. We capitalize and amortize costs for internally developed computer software during the application development stage. These costs generally consist of external consulting, internal payroll and payroll-related costs. Our depreciation is based on estimated useful lives (ranging from three years to 39.5 years ) using straight-line and accelerated methods. Depreciation expense was $31 million for 2018 , $28 million for 2017 and $30 million for 2016 . We review our accumulated depreciation for our building, equipment and software assets and write off fully depreciated assets for obsolesce and nonuse. We monitor land, building and equipment and software assets for potential impairments. Potential impairments may include a significant decrease in the fair values of the assets, considerable cost overruns on projects, a change in legal factors or business climate or other factors that indicate that the carrying amount may not be recoverable or useful. There were no recorded land, building and equipment impairments for 2018 , 2017 or 2016 . |
Finance Receivables | Finance Receivables Our leasing subsidiary provides auto and equipment direct financing (leases and loans) to commercial and individual clients. We generally transfer ownership of the property to the client as the terms of the leases expire. Our lease contracts contain bargain purchase options. We account for these leases and loans as direct financing-type leases. We capitalize and amortize lease or loan origination costs over the life of the financing, using the effective interest method. These costs may include, but are not limited to finder fees, broker fees, filing fees and the cost of credit reports. We record income as other revenues over the financing term using the effective interest method in the consolidated statements of income. Finance receivables are reviewed for impairment and are insignificant to our consolidated financial position, results of operations and cash flows. |
Employee Benefit Pension Plan | Employee Benefit Pension Plan We sponsor a defined benefit pension plan that was modified during 2008. We closed entry into the pension plan, and only participants 40 years of age or older could elect to remain in the plan. Our pension expense is based on certain actuarial assumptions and also is composed of several components that are determined using the projected unit credit actuarial cost method. Refer to Note 13, Employee Retirement Benefits, for more information about our defined benefit pension plan. |
Stock-Based Compensation | Share-Based Compensation We grant qualified and nonqualified share-based compensation under authorized plans. The stock options generally vest on a graded scale over three years following the date of grant and are exercisable over 10 -year periods. We grant service-based restricted stock units that cliff vest three years after the date of grant as well as service-based restricted stock units that vest ratably over the three -year vesting term. We also grant performance-based restricted stock units that vest if certain market conditions are attained. In 2018 , the CFC compensation committee approved share-based awards including incentive stock options, nonqualified stock options, service-based restricted and performance-based restricted stock units. See Note 17, Share-Based Associate Compensation Plans, for further details. |
Subsequent Events | Subsequent Events Related to the pending acquisition of MSP Underwriting Limited, on January 3, 2019, the company entered into a foreign exchange forward contract, which provides for an economic hedge between the agreed upon purchase price in GBP and currency fluctuations between the U.S. dollar and GBP during the period from that date through February 28, 2019. The acquisition is expected to close during the first quarter of 2019. There were no subsequent events requiring adjustment to the consolidated financial statements and, with the exception of the above disclosure, no additional disclosures were required in the notes to our consolidated financial statements. |
Adopted Accounting Updates | Adopted Accounting Updates ASU 2014-09 Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers . ASU 2014-09 requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. Insurance contracts do not fall within the scope of this ASU. The effective date of ASU 2014-09 was for interim and annual reporting periods beginning after December 15, 2017. The company adopted this ASU effective January 1, 2018, and it did not have a material impact on the company's consolidated financial position, cash flows or results of operations. ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 revised the accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. The effective date of ASU 2016-01 was for interim and annual reporting periods beginning after December 15, 2017. The company adopted this ASU on January 1, 2018, and applied it on a modified retrospective basis without prior period amounts restated. As a result of the adoption, $2.503 billion of after-tax unrealized gains on equity securities was reclassified on January 1, 2018, from accumulated other comprehensive income to retained earnings. Results of operations were impacted as changes in fair value of equity securities are now reported in net income instead of reported in other comprehensive income. As a result of the adoption of this ASU, for the year ended December 31, 2018, the net investment loss of $402 million in the consolidated statements of income included a decrease of $404 million from the fair value change of equity securities. ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . ASU 2016-15 addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The effective date of ASU 2016-15 is for interim and annual reporting periods beginning after December 15, 2017. The company adopted this ASU effective January 1, 2018, and it did not have a material impact on the company's consolidated financial position, cash flows, results of operations or disclosures. ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Postretirement Benefit Costs . ASU 2017-07 provides guidance on how to present the components of net periodic benefit costs in the income statement for pension plans and other post-retirement benefit plans and allows only the service cost component of net benefit cost to be eligible for capitalization when applicable. The effective date of ASU 2017-07 is for interim and annual reporting periods beginning after December 15, 2017. The company adopted this ASU effective January 1, 2018, and disclosed the line items used in the statements of income to present the service and non-service components of net periodic benefit costs in Note 13, Employee Retirement Benefits, to these consolidated financial statements. The adoption did not have a material impact on our company's consolidated financial position, cash flows or results of operations. ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting. ASU 2017-09 clarifies when to account for a change to the terms or conditions of a share based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. The effective date of ASU 2017-09 was for interim and annual reporting periods, beginning after December 15, 2017, and was applied prospectively. The company adopted this ASU effective January 1, 2018, and it did not have a material impact on our company's consolidated financial position, cash flows or results of operations. |
Pending Accounting Updates | Pending Accounting Updates ASU 2016-02, Leases (Topic 842) In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The main provision of ASU 2016-02 requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. The effective date of ASU 2016-02 is for interim and annual reporting periods beginning after December 15, 2018, and will be applied prospectively. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842 and ASU 2018-11, Targeted Improvements to Topic 842. ASU 2018-10 makes narrow-scope amendments to certain aspects of the new leasing standard while ASU 2018-11 provides relief from costs of implementing certain aspects of the new leasing standard. These ASU's have not yet been adopted and will not have a material impact on our company's consolidated financial position, cash flows or results of operations. ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . ASU 2016-13 amends previous guidance on the impairment of financial instruments by adding an impairment model that allows an entity to recognize expected credit losses as an allowance rather than impairing as they are incurred. The new guidance is intended to reduce complexity of credit impairment models and result in a more timely recognition of expected credit losses. The effective date of ASU 2016-13 is for interim and annual reporting periods beginning after December 15, 2019. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326. ASU 2018-19 makes narrow-scope amendments to certain aspects of the credit losses standard. These ASU's have not yet been adopted. Management is currently evaluating the impact on our company's consolidated financial position, cash flows and results of operations. ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities In March 2017, the FASB issued ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. ASU 2017-08 amends guidance on the amortization period of premiums on certain purchased callable debt securities. The amendments shorten the amortization period of premiums on certain purchased callable debt securities to the earliest call date. The amendments should be applied on a modified retrospective basis through a cumulative-effect adjustment to beginning retained earnings. The effective date of ASU 2017-08 is for interim and annual reporting periods beginning after December 15, 2018. The ASU has not yet been adopted; however, it is not expected to have a material impact on our company's consolidated financial position, cash flows or results of operations. ASU 2018-07, Compensation - Stock Compensation (Topic 718) - Improvements to Nonemployee Share-Based Payment Accounting In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting . ASU 2018-07 expands the scope of Topic 718, Compensation - Stock Compensation, which currently only includes share-based payments issued to employees, to include share-based payments issued to nonemployees for the acquisition of goods and services. The effective date of ASU 2018-07 is for interim and annual reporting periods beginning after December 15, 2018. The ASU has not yet been adopted; however, it is not expected to have a material impact on our company's consolidated financial position, cash flows or results of operations. ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts In August 2018, the FASB issued ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts . ASU 2018-12 is intended to improve the timeliness of recognizing changes in the liability for future policy benefits and modify the rate used to discount future cash flows. The ASU will simplify and improve the accounting for certain market-based options or guarantees associated with deposit or account balance contracts, simplify amortization of deferred acquisition costs while improving and expanding required disclosures. The effective date of ASU 2018-12 is for interim and annual reporting periods beginning after December 15, 2020. The ASU has not yet been adopted. Management is currently evaluating the impact on our company's consolidated financial position, cash flows and results of operations. ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement . ASU 2018-13 clarifies the fair value measurement disclosure requirements of ASC 820 by adding, eliminating and modifying disclosures. The effective date of ASU 2018-13 is for interim and annual reporting periods beginning after December 15, 2019. The ASU has not yet been adopted; however, it is not expected to have a material impact on our company's consolidated financial position, cash flows or results of operations. ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Topic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Topic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans . ASU 2018-14 clarifies the guidance in ASC 715 to add, remove, and clarify disclosure requirements related to defined benefit pension and other postretirement plans. The effective date of ASU 2018-14 is for annual reporting periods ending after December 15, 2020. The ASU has not yet been adopted; however, it is not expected to have a material impact on our company's consolidated financial position, cash flows or results of operations. ASU 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In August 2018, the FASB issued ASU 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . ASU 2018-15 amends ASC 350 to include implementation costs of a cloud computing arrangement that is a service contract and clarifies that a customer should apply ASC 350-40 to determine which implementation costs should be capitalized in a cloud computing arrangement that is considered a service contract. The effective date of ASU 2018-15 is for interim and annual reporting periods beginning after December 15, 2019. The ASU has not yet been adopted. Management is currently evaluating the impact on our company's consolidated financial position, cash flows and results of operations. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments [Abstract] | |
Analysis Of Cost Or Amortized Cost, Gross Unrealized Gains And Losses And Fair Value for Investments | The following table provides cost or amortized cost, gross unrealized gains, gross unrealized losses and fair value for our fixed-maturity and equity securities: (Dollars in millions) Cost or amortized cost Gross unrealized Fair At December 31, 2018 gains losses Fixed-maturity securities: Corporate $ 5,712 $ 85 $ 87 $ 5,710 States, municipalities and political subdivisions 4,251 84 31 4,304 Commercial mortgage-backed 287 3 2 288 Government-sponsored enterprises 316 1 7 310 United States government 67 1 1 67 Foreign government 10 — — 10 Total $ 10,643 $ 174 $ 128 $ 10,689 At December 31, 2017 Fixed-maturity securities: Corporate $ 5,420 $ 246 $ 13 $ 5,653 States, municipalities and political subdivisions 4,316 155 6 4,465 Commercial mortgage-backed 280 7 1 286 Government-sponsored enterprises 257 1 4 254 United States government 31 — — 31 Foreign government 10 — — 10 Subtotal 10,314 409 24 10,699 Equity securities: Common equities 2,918 3,135 14 6,039 Nonredeemable preferred equities 176 34 — 210 Subtotal 3,094 3,169 14 6,249 Total $ 13,408 $ 3,578 $ 38 $ 16,948 |
Fair Values And Unrealized Losses by Investment Category And By The Duration Of The Securities' Continuous Unrealized Loss Position | The table below provides fair values and unrealized losses by investment category and by the duration of the securities’ continuous unrealized loss positions: (Dollars in millions) Less than 12 months 12 months or more Total At December 31, 2018 Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Fixed-maturity securities: Corporate $ 2,082 $ 51 $ 501 $ 36 $ 2,583 $ 87 States, municipalities and political subdivisions 823 18 340 13 1,163 31 Commercial mortgage-backed 77 — 64 2 141 2 Government-sponsored enterprises 49 1 211 6 260 7 United States government — — 33 1 33 1 Total $ 3,031 $ 70 $ 1,149 $ 58 $ 4,180 $ 128 At December 31, 2017 Fixed-maturity securities: Corporate $ 330 $ 4 $ 252 $ 9 $ 582 $ 13 States, municipalities and political subdivisions 88 1 264 5 352 6 Commercial mortgage-backed 33 — 36 1 69 1 Government-sponsored enterprises 96 1 124 3 220 4 Foreign government 10 — — — 10 — United States government 23 — 6 — 29 — Subtotal 580 6 682 18 1,262 24 Equity securities: Common equities 229 14 — — 229 14 Subtotal 229 14 — — 229 14 Total $ 809 $ 20 $ 682 $ 18 $ 1,491 $ 38 |
Contractual Maturity Dates For Fixed-Maturity And Short-Term Investments | Contractual maturity dates for fixed-maturity investments were: (Dollars in millions) Amortized cost Fair value % of fair value At December 31, 2018 Maturity dates: Due in one year or less $ 586 $ 592 5.5 % Due after one year through five years 2,894 2,912 27.3 Due after five years through ten years 3,663 3,653 34.2 Due after ten years 3,500 3,532 33.0 Total $ 10,643 $ 10,689 100.0 % |
Investment Income, Realized Investment Gains And Losses And Change In Unrealized Investment Gains And Losses | The following table provides investment income and investment gains and losses: (Dollars in millions) Years ended December 31, 2018 2017 2016 Investment income: Interest $ 445 $ 445 $ 440 Dividends 181 170 161 Other 5 4 3 Total 631 619 604 Less investment expenses 12 10 9 Total $ 619 $ 609 $ 595 Investment gains and losses, net: Equity securities: Investment gains and losses on securities sold, net $ 9 $ — $ — Unrealized gains and losses on securities still held, net (404 ) — — Gross realized gains — 195 152 Gross realized losses — (72 ) (53 ) Other-than-temporary impairments — (3 ) — Subtotal (395 ) 120 99 Fixed maturities: Gross realized gains 12 25 26 Gross realized losses (2 ) — (1 ) Other-than-temporary impairments (5 ) (6 ) (2 ) Subtotal 5 19 23 Other (12 ) 9 2 Total (402 ) 148 124 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Hierarchy for Assets Measured at Fair Value on a Recurring Basis | The following tables illustrate the fair value hierarchy for those assets measured at fair value on a recurring basis at December 31, 2018 and 2017 . We do not have any liabilities carried at fair value. There were no transfers between Level 1 and Level 2. (Dollars in millions) Quoted prices in active markets for Significant unobservable At December 31, 2018 Significant other observable inputs (Level 2) Total Fixed maturities, available for sale: Corporate $ — $ 5,709 $ 1 $ 5,710 States, municipalities and political subdivisions — 4,300 4 4,304 Commercial mortgage-backed — 288 — 288 Government-sponsored enterprises — 310 — 310 United States Government 67 — — 67 Foreign government — 10 — 10 Subtotal 67 10,617 5 10,689 Common equities 5,742 — — 5,742 Nonredeemable preferred equities — 178 — 178 Separate accounts taxable fixed maturities — 791 — 791 Top Hat savings plan mutual funds and common equity (included in Other assets) 34 — — 34 Total $ 5,843 $ 11,586 $ 5 $ 17,434 At December 31, 2017 Fixed maturities, available for sale: Corporate $ — $ 5,652 $ 1 $ 5,653 States, municipalities and political subdivisions — 4,460 5 4,465 Commercial mortgage-backed — 286 — 286 Government-sponsored enterprises — 254 — 254 United States Government 31 — — 31 Foreign government — 10 — 10 Subtotal 31 10,662 6 10,699 Common equities, available for sale 6,039 — — 6,039 Nonredeemable preferred equities, available for sale — 210 — 210 Separate accounts taxable fixed maturities — 795 — 795 Top Hat savings plan mutual funds and common equity (included in Other assets) 31 — — 31 Total $ 6,101 $ 11,667 $ 6 $ 17,774 |
Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | The following table provides the change in Level 3 assets during 2018 and 2017 : (Dollars in millions) Asset fair value measurements using significant unobservable inputs Corporate fixed maturities States, municipalities and political subdivisions fixed maturities Total Beginning balance, January 1, 2018 $ 1 $ 5 $ 6 Total gains or losses (realized/unrealized): Included in net income — — — Included in other comprehensive income — (1 ) (1 ) Purchases — — — Sales — — — Transfers into Level 3 — — — Transfers out of Level 3 — — — Ending balance, December 31, 2018 $ 1 $ 4 $ 5 Beginning balance, January 1, 2017 $ 78 $ — $ 78 Total gains or losses (realized/unrealized): Included in net income — — — Included in other comprehensive income — — — Purchases — 5 5 Sales — — — Transfers into Level 3 — — — Transfers out of Level 3 (77 ) — (77 ) Ending balance, December 31, 2017 $ 1 $ 5 $ 6 |
Fair Value of Life Policy Loans | The following table shows the fair value of our life policy loans, included in other invested assets: (Dollars in millions) Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Total At December 31, 2018 Life policy loans $ — $ — $ 40 $ 40 At December 31, 2017 Life policy loans $ — $ — $ 41 $ 41 |
Debt | |
Fair Values of Deferred Annuities, Structured Settlements and Other Items | The following table shows fair values of our note payable and long-term debt: (Dollars in millions) Quoted prices in active markets for Significant other Significant unobservable inputs (Level 3) Total At December 31, 2018 Note payable $ — $ 32 $ — $ 32 6.900% senior debentures, due 2028 — 32 — 32 6.920% senior debentures, due 2028 — 471 — 471 6.125% senior notes, due 2034 — 440 — 440 Total $ — $ 975 $ — $ 975 At December 31, 2017 Note payable $ — $ 24 $ — $ 24 6.900% senior debentures, due 2028 — 34 — 34 6.920% senior debentures, due 2028 — 505 — 505 6.125% senior notes, due 2034 — 477 — 477 Total $ — $ 1,040 $ — $ 1,040 |
Deferred Annuities and Structured Settlements | |
Fair Values of Deferred Annuities, Structured Settlements and Other Items | The following table shows fair value of our deferred annuities and structured settlements included in life policy and investment contract reserves: (Dollars in millions) Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Total At December 31, 2018 Deferred annuities $ — $ — $ 742 $ 742 Structured settlements — 185 — 185 Total $ — $ 185 $ 742 $ 927 At December 31, 2017 Deferred annuities $ — $ — $ 834 $ 834 Structured settlements — 210 — 210 Total $ — $ 210 $ 834 $ 1,044 |
Property Casualty Loss And Lo_2
Property Casualty Loss And Loss Expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Insurance [Abstract] | |
Consolidated Property Casualty Loss And Loss Expense Reserves | This table summarizes activity for our consolidated property casualty loss and loss expense reserves: (Dollars in millions) Years ended December 31, 2018 2017 2016 Gross loss and loss expense reserves, January 1 $ 5,219 $ 5,035 $ 4,660 Less reinsurance recoverable 187 298 281 Net loss and loss expense reserves, January 1 5,032 4,737 4,379 Net incurred loss and loss expenses related to: Current accident year 3,390 3,257 3,029 Prior accident years (167 ) (119 ) (168 ) Total incurred 3,223 3,138 2,861 Net paid loss and loss expenses related to: Current accident year 1,391 1,404 1,260 Prior accident years 1,456 1,439 1,243 Total paid 2,847 2,843 2,503 Net loss and loss expense reserves, December 31 5,408 5,032 4,737 Plus reinsurance recoverable 238 187 298 Gross loss and loss expense reserves, December 31 $ 5,646 $ 5,219 $ 5,035 |
Reconciliation of Property casualty Incurred Losses and ALAE and Paid Losses and ALAE Development Information | The following table provides a reconciliation of the property casualty incurred losses and allocated loss adjustment expenses (ALAE) development and paid losses and ALAE development information at December 31, 2018. (Dollars in millions) Cumulative incurred losses and ALAE as reported within the triangles, net of reinsurance Cumulative paid losses and ALAE as reported within the triangles, net of reinsurance Liabilities for loss and ALAE for accident years not presented in the triangles, net of reinsurance Total liabilities for loss and ALAE, net of reinsurance Reinsurance recoverable on unpaid losses Total liabilities for gross loss and loss expense reserves Commercial casualty $ 4,671 $ 2,658 $ 94 $ 2,107 $ 51 $ 2,158 Workers' compensation 2,142 1,493 283 932 59 991 Commercial auto 2,104 1,486 14 632 5 637 Commercial property 2,588 2,287 13 314 — 314 Personal auto 1,889 1,603 4 290 34 324 Homeowner 1,614 1,474 3 143 32 175 Excess and surplus 532 256 1 277 7 284 Other lines 483 Total liabilities for loss and ALAE reserves 5,366 Unallocated loss adjustment expense reserves 280 Gross loss and loss expense reserves $ 5,646 |
Schedule of Incurred and Paid Losses and ALAE Development by Accident Year | The following table shows the homeowner incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency: (Dollars in millions, reported claims in thousands) As of December 31, 2018 Incurred losses and ALAE, net of reinsurance Total of incurred Cumulative number of reported claims Years ended December 31, Accident 2014 2015 2016 2017 Year Unaudited 2018 2014 $ 297 $ 283 $ 286 $ 285 $ 284 $ — 26 2015 284 275 275 274 — 24 2016 315 304 303 1 23 2017 356 383 3 26 2018 370 15 21 Total $ 1,614 Cumulative paid losses and ALAE, net of reinsurance 2014 $ 224 $ 273 $ 281 $ 283 $ 283 2015 203 260 269 272 2016 208 283 295 2017 277 356 2018 268 Total 1,474 All outstanding liabilities before 2014, net of reinsurance 3 Liabilities for loss and ALAE, net of reinsurance $ 143 The following table shows the workers’ compensation incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency: (Dollars in millions, reported claims in thousands) As of December 31, 2018 Incurred losses and ALAE, net of reinsurance Total of incurred Cumulative number of reported claims Years ended December 31, Accident 2009 2010 2011 2012 2013 2014 2015 2016 2017 Year Unaudited 2018 2009 $ 307 $ 278 $ 263 $ 238 $ 238 $ 235 $ 234 $ 234 $ 232 $ 231 $ 17 27 2010 283 274 248 242 240 239 240 237 236 20 26 2011 284 251 246 242 239 236 231 229 20 24 2012 265 245 234 220 213 211 209 22 21 2013 264 246 221 212 208 205 23 20 2014 261 233 214 203 201 20 19 2015 246 220 208 195 46 17 2016 230 218 206 51 16 2017 218 208 74 15 2018 222 99 13 Total $ 2,142 Cumulative paid losses and ALAE, net of reinsurance 2009 $ 65 $ 132 $ 163 $ 179 $ 188 $ 193 $ 198 $ 201 $ 202 $ 204 2010 67 134 164 181 192 198 202 204 207 2011 65 131 161 177 186 190 192 195 2012 62 121 147 162 171 175 178 2013 61 119 144 157 164 168 2014 56 110 134 148 157 2015 47 93 115 129 2016 46 97 119 2017 45 88 2018 48 Total 1,493 All outstanding liabilities before 2009, net of reinsurance 283 Liabilities for loss and ALAE, net of reinsurance $ 932 The following table shows the excess and surplus lines incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency: (Dollars in millions, reported claims in thousands) As of December 31, 2018 Incurred losses and ALAE, net of reinsurance Total of incurred Cumulative number of reported claims Years ended December 31, Accident 2011 2012 2013 2014 2015 2016 2017 Year Unaudited 2018 2011 $ 48 $ 47 $ 44 $ 38 $ 36 $ 35 $ 35 $ 34 $ — 1 2012 67 56 49 40 37 36 35 1 1 2013 74 64 54 45 42 41 3 2 2014 95 82 75 64 60 10 2 2015 96 81 73 67 13 2 2016 93 87 84 22 2 2017 104 95 43 2 2018 116 71 2 Total $ 532 Cumulative paid losses and ALAE, net of reinsurance 2011 $ 8 $ 14 $ 23 $ 27 $ 30 $ 32 $ 34 $ 33 2012 9 15 19 25 29 31 32 2013 7 12 20 27 32 34 2014 9 17 27 37 43 2015 8 19 29 41 2016 10 21 39 2017 11 23 2018 11 Total 256 All outstanding liabilities before 2011, net of reinsurance 1 Liabilities for loss and ALAE, net of reinsurance $ 277 The following table shows the commercial property incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency: (Dollars in millions, reported claims in thousands) As of December 31, 2018 Incurred losses and ALAE, net of reinsurance Total of incurred Cumulative number of reported claims Years ended December 31, Accident 2014 2015 2016 2017 Year Unaudited 2018 2014 $ 452 $ 444 $ 441 $ 442 $ 442 $ 1 17 2015 454 414 416 415 4 17 2016 590 551 541 4 17 2017 587 560 12 18 2018 630 13 16 Total $ 2,588 Cumulative paid losses and ALAE, net of reinsurance 2014 $ 297 $ 412 $ 432 $ 437 $ 440 2015 279 388 407 411 2016 358 504 528 2017 395 522 2018 386 Total 2,287 All outstanding liabilities before 2014, net of reinsurance 13 Liabilities for loss and ALAE, net of reinsurance $ 314 The following table shows the commercial casualty incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency: (Dollars in millions, reported claims in thousands) As of December 31, 2018 Incurred losses and ALAE, net of reinsurance Total of incurred but not reported liabilities plus expected development on reported losses Cumulative number of reported claims Years ended December 31, Accident 2009 2010 2011 2012 2013 2014 2015 2016 2017 Year Unaudited 2018 2009 $ 484 $ 409 $ 412 $ 360 $ 370 $ 365 $ 357 $ 357 $ 353 $ 360 $ 13 20 2010 495 394 378 349 347 348 349 343 341 16 20 2011 466 404 377 377 375 380 366 365 13 19 2012 466 414 417 394 394 404 399 29 18 2013 448 443 431 416 413 407 53 19 2014 503 496 479 476 479 66 21 2015 533 526 529 516 105 21 2016 563 574 557 152 21 2017 610 597 262 19 2018 650 406 16 Total $ 4,671 Cumulative paid losses and ALAE, net of reinsurance 2009 $ 27 $ 75 $ 151 $ 213 $ 267 $ 295 $ 310 $ 322 $ 328 $ 338 2010 33 92 159 203 256 285 300 314 318 2011 27 93 149 227 266 298 315 325 2012 27 88 170 232 288 330 346 2013 35 90 159 232 286 312 2014 34 97 172 287 338 2015 38 108 200 287 2016 46 126 228 2017 48 122 2018 44 Total 2,658 All outstanding liabilities before 2009, net of reinsurance 94 Liabilities for loss and ALAE, net of reinsurance $ 2,107 The following table shows the commercial auto incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency: (Dollars in millions, reported claims in thousands) As of December 31, 2018 Incurred losses and ALAE, net of reinsurance Total of incurred Cumulative number of reported claims Years ended December 31, Accident 2014 2015 2016 2017 Year Unaudited 2018 2014 $ 333 $ 346 $ 351 $ 358 $ 359 $ 2 51 2015 374 384 394 401 10 51 2016 417 430 450 17 53 2017 451 441 65 51 2018 453 138 46 Total $ 2,104 Cumulative paid losses and ALAE, net of reinsurance 2014 $ 159 $ 223 $ 273 $ 310 $ 337 2015 173 244 303 349 2016 184 273 350 2017 187 266 2018 184 Total 1,486 All outstanding liabilities before 2014, net of reinsurance 14 Liabilities for loss and ALAE, net of reinsurance $ 632 The following table shows the personal auto incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency: (Dollars in millions, reported claims in thousands) As of December 31, 2018 Incurred losses and ALAE, net of reinsurance Total of incurred Cumulative number of reported claims Years ended December 31, Accident 2014 2015 2016 2017 Year Unaudited 2018 2014 $ 317 $ 317 $ 325 $ 324 $ 325 $ — 105 2015 343 356 356 360 — 108 2016 383 384 386 3 110 2017 412 394 14 109 2018 424 64 104 Total $ 1,889 Cumulative paid losses and ALAE, net of reinsurance 2014 $ 210 $ 267 $ 298 $ 313 $ 320 2015 229 292 325 346 2016 243 316 351 2017 256 324 2018 262 Total 1,603 All outstanding liabilities before 2014 net of reinsurance 4 Liabilities for loss and ALAE, net of reinsurance $ 290 |
Schedule of Average Annual Percentage Payout of Incurred Claims | The following table shows the average annual percentage payout of incurred losses for the commercial casualty line of business: Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 6 7 8 9 10 Average annual percentage payout 7.8% 14.5% 18.2% 18.0% 13.2% 8.4% 4.3% 3.5% 1.4% 2.7% The following table shows the average annual percentage payout of incurred losses for the commercial property line of business: Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 Average annual percentage payout 66.4% 25.5% 4.6% 1.0% 0.7% The following table shows the average annual percentage payout of incurred losses for the personal auto line of business. Personal auto includes both physical damage and liability losses. A majority of the incurred losses paid after year 2 are the result of liability losses. Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 Average annual percentage payout 63.6% 17.7% 9.3% 5.2% 2.1% The following table shows the average annual percentage payout of incurred losses for the excess and surplus lines insurance segment. Excess and surplus lines consist mostly of commercial casualty and commercial property coverages. A majority of the incurred losses paid after year 2 are the result of commercial casualty losses. Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 6 7 8 Average annual percentage payout 15.8% 14.4% 18.8% 15.6% 10.5% 6.8% 2.0% 0.5% The following table shows the average annual percentage payout of incurred losses for the workers’ compensation line of business: Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 6 7 8 9 10 Average annual percentage payout 26.2% 26.6% 12.2% 6.9% 4.1% 2.1% 1.4% 1.2% 0.9% 0.9% The following table shows the average annual percentage payout of incurred losses for the commercial auto line of business. Commercial auto includes both physical damage and liability losses. A majority of the incurred losses paid after year 2 are the result of liability losses. Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 Average annual percentage payout 42.3% 18.3% 15.2% 10.8% 7.5% The following table shows the average annual percentage payout of incurred losses for the homeowner line of business: Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 Average annual percentage payout 73.2% 20.9% 3.4% 0.8% 0.2% |
Life Policy And Investment Co_2
Life Policy And Investment Contract Reserves (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Liability for Future Policy Benefits [Abstract] | |
Reserve In Addition To The Account Balance, Based on Expected No-Lapse Guarantee Benefits And Expected Policy Assessments | This table summarizes our life policy and investment contract reserves: (Dollars in millions) At December 31, 2018 2017 Life policy reserves: Ordinary/traditional life $ 1,149 $ 1,080 Other 48 47 Subtotal 1,197 1,127 Investment contract reserves: Deferred annuities 787 835 Universal life 632 601 Structured settlements 156 160 Other 7 6 Subtotal 1,582 1,602 Total life policy and investment contract reserves $ 2,779 $ 2,729 |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs [Abstract] | |
Deferred Policy Acquisition Costs And Asset Reconciliation, Including the Amortized Deferred Policy Acquisition Costs | The table below shows the deferred policy acquisition costs and asset reconciliation: (Dollars in millions) Years ended December 31, 2018 2017 2016 Property casualty: Deferred policy acquisition costs asset, January 1 $ 438 $ 408 $ 388 Capitalized deferred policy acquisition costs 933 897 840 Amortized deferred policy acquisition costs (907 ) (867 ) (820 ) Deferred policy acquisition costs asset, December 31 $ 464 $ 438 $ 408 Life: Deferred policy acquisition costs asset, January 1 $ 232 $ 229 $ 228 Capitalized deferred policy acquisition costs 60 51 49 Amortized deferred policy acquisition costs (39 ) (46 ) (43 ) Shadow deferred policy acquisition costs 21 (2 ) (5 ) Deferred policy acquisition costs asset, December 31 $ 274 $ 232 $ 229 Consolidated: Deferred policy acquisition costs asset, January 1 $ 670 $ 637 $ 616 Capitalized deferred policy acquisition costs 993 948 889 Amortized deferred policy acquisition costs (946 ) (913 ) (863 ) Shadow deferred policy acquisition costs 21 (2 ) (5 ) Deferred policy acquisition costs asset, December 31 $ 738 $ 670 $ 637 |
Long-Term Debt And Capital Le_2
Long-Term Debt And Capital Lease Obligation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Long-term Debt and Capital Lease Obligations [Abstract] | |
Book Value And Principal Amounts Of Long-Term Debt | This table summarizes the principal amounts of our long-term debt excluding unamortized discounts, none of which are encumbered by rating triggers: (Dollars in millions) Book value Principal amount Interest rate Year of issue At December 31, At December 31, 2018 2017 2018 2017 6.900% 1998 Senior debentures, due 2028 $ 27 $ 26 $ 28 $ 28 6.920% 2005 Senior debentures, due 2028 391 391 391 391 6.125% 2004 Senior notes, due 2034 370 370 374 374 Total $ 788 $ 787 $ 793 $ 793 |
Capital Lease Payments Over Next Five Years | Below are the expected capital lease obligations, which includes $3 million of interest, that we expect to pay over the next six years: (Dollars in millions) Years ended December 31, 2019 2020 2021 2022 2023 2024 Capital lease obligations $ 16 $ 12 $ 9 $ 6 $ 4 $ 2 |
Shareholders' Equity And Divi_2
Shareholders' Equity And Dividend Restrictions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Shareholders Equity And Dividend Restrictions [Abstract] | |
Change In AOCI Includes Changes In Unrealized Gains And Losses On Investments And Pension Obligations | The changes from the beginning of year to the end of year are the result of changes to other comprehensive income or loss (OCI). (Dollars in millions) 2018 2017 2016 Before tax Income tax Net Before Income Net Before Income Net Investments: AOCI, January 1 $ 3,540 $ 733 $ 2,807 $ 2,625 $ 908 $ 1,717 $ 2,094 $ 722 $ 1,372 Cumulative effect of change in accounting for equity securities as of January 1, 2018 (3,155 ) (652 ) (2,503 ) — — — — — — Adjusted AOCI, beginning of period 385 81 304 2,625 908 1,717 2,094 722 1,372 OCI before investment gains and losses, net, recognized in net income (334 ) (71 ) (263 ) 1,054 366 688 653 229 424 Investment gains and losses, net, recognized in net income (5 ) (1 ) (4 ) (139 ) (49 ) (90 ) (122 ) (43 ) (79 ) OCI (339 ) (72 ) (267 ) 915 317 598 531 186 345 Adjustment to reclassify certain tax effects from AOCI — — — — (492 ) 492 — — — AOCI, December 31 $ 46 $ 9 $ 37 $ 3,540 $ 733 $ 2,807 $ 2,625 $ 908 $ 1,717 Pension obligations: AOCI, January 1 $ (12 ) $ (1 ) $ (11 ) $ (26 ) $ (8 ) $ (18 ) $ (42 ) $ (14 ) $ (28 ) OCI excluding amortization recognized in net income (5 ) (1 ) (4 ) 12 6 6 13 5 8 Amortization recognized in net income 1 — 1 2 1 1 3 1 2 OCI (4 ) (1 ) (3 ) 14 7 7 16 6 10 AOCI, December 31 $ (16 ) $ (2 ) $ (14 ) $ (12 ) $ (1 ) $ (11 ) $ (26 ) $ (8 ) $ (18 ) Life deferred acquisition costs, life policy reserves and other: AOCI, January 1 $ (10 ) $ (2 ) $ (8 ) $ (9 ) $ (3 ) $ (6 ) $ 1 $ 1 $ — OCI before investment gains and losses, net, recognized in net income (3 ) (1 ) (2 ) 8 5 3 (8 ) (3 ) (5 ) Investment gains and losses, net, recognized in net income 12 3 9 (9 ) (4 ) (5 ) (2 ) (1 ) (1 ) OCI 9 2 7 (1 ) 1 (2 ) (10 ) (4 ) (6 ) AOCI, December 31 $ (1 ) $ — $ (1 ) $ (10 ) $ (2 ) $ (8 ) $ (9 ) $ (3 ) $ (6 ) Summary of AOCI: AOCI, January 1 $ 3,518 $ 730 $ 2,788 $ 2,590 $ 897 $ 1,693 $ 2,053 $ 709 $ 1,344 Cumulative effect of change in accounting for equity securities as of January 1, 2018 (3,155 ) (652 ) (2,503 ) — — — — — — Adjusted AOCI, beginning of period 363 78 285 2,590 897 1,693 2,053 709 1,344 Investments OCI (339 ) (72 ) (267 ) 915 317 598 531 186 345 Pension obligations OCI (4 ) (1 ) (3 ) 14 7 7 16 6 10 Life deferred acquisition costs, life policy reserves and other OCI 9 2 7 (1 ) 1 (2 ) (10 ) (4 ) (6 ) Total OCI (334 ) (71 ) (263 ) 928 325 603 537 188 349 Adjustment to reclassify certain tax effects from AOCI — — — — (492 ) 492 — — — AOCI, December 31 $ 29 $ 7 $ 22 $ 3,518 $ 730 $ 2,788 $ 2,590 $ 897 $ 1,693 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Reinsurance Disclosures [Abstract] | |
Property Casualty Insurance Assumed And Ceded Business | The table below summarizes our consolidated property casualty insurance net written premiums, earned premiums and incurred loss and loss expenses: (Dollars in millions) Years ended December 31, 2018 2017 2016 Direct written premiums $ 5,018 $ 4,854 $ 4,646 Assumed written premiums 173 125 103 Ceded written premiums (161 ) (139 ) (169 ) Net written premiums $ 5,030 $ 4,840 $ 4,580 Direct earned premiums $ 4,931 $ 4,752 $ 4,567 Assumed earned premiums 149 132 77 Ceded earned premiums (160 ) (162 ) (162 ) Earned premiums $ 4,920 $ 4,722 $ 4,482 Direct incurred loss and loss expenses $ 3,188 $ 2,961 $ 2,874 Assumed incurred loss and loss expenses 125 113 43 Ceded incurred loss and loss expenses (90 ) 64 (56 ) Incurred loss and loss expenses $ 3,223 $ 3,138 $ 2,861 |
Life Insurance Assumed And Ceded Business | The table below summarizes our consolidated life insurance earned premiums and contract holders' benefits incurred: (Dollars in millions) Years ended December 31, 2018 2017 2016 Direct earned premiums $ 320 $ 300 $ 290 Ceded earned premiums (70 ) (68 ) (62 ) Earned premiums $ 250 $ 232 $ 228 Direct contract holders' benefits incurred $ 328 $ 319 $ 303 Ceded contract holders' benefits incurred (61 ) (67 ) (57 ) Contract holders' benefits incurred $ 267 $ 252 $ 246 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Components Of Deferred Tax Assets And Liabilities | The significant components of deferred tax assets and liabilities included in the consolidated balance sheets at December 31 were as follows: (Dollars in millions) At December 31, 2018 2017 Deferred tax assets: Loss and loss expense reserves $ 60 $ 123 Unearned premiums 105 100 Other 33 27 Total gross deferred tax assets 198 250 Deferred tax liabilities: Investment gains and other, net 542 740 Deferred acquisition costs 131 123 Life policy reserves 117 111 Investments 18 10 Other 17 11 Total gross deferred tax liabilities 825 995 Net deferred income tax liability $ 627 $ 745 |
Differences Between The 35 Percent Statutory Income Tax Rate And Effective Income Tax Rate | The differences between the 21 percent and 35 percent statutory federal income tax rate and our effective income tax rate were as follows: (Dollars in millions) Years ended December 31, 2018 2017 2016 Tax at statutory rate: $ 53 21.0 % $ 256 35.0 % $ 284 35.0 % Increase (decrease) resulting from: Tax-exempt income from municipal bonds (20 ) (8.0 ) (36 ) (4.9 ) (34 ) (4.2 ) Dividend received exclusion (15 ) (6.0 ) (34 ) (4.7 ) (33 ) (4.1 ) Tax accounting method changes (50 ) (19.9 ) — — — — Deferred tax benefit due to tax rate change — — (495 ) (67.8 ) — — Other (4 ) (1.4 ) (6 ) (0.8 ) 4 0.5 Provision for income taxes $ (36 ) (14.3 )% $ (315 ) (43.2 )% $ 221 27.2 % |
Reconciliation of Unrecognized Tax Benefits | The following is a tabular reconciliation of the total amounts of unrecognized tax benefits. (Dollars in millions) Years ended December 31, 2018 2017 2016 Gross unrecognized tax benefits at January 1 $ — $ — $ — Gross increase in prior year positions — — — Gross decrease in prior year positions — — — Gross increase in current year positions 34 — — Settlements with tax authorities — — — Lapse of statute of limitations — — — Gross unrecognized tax benefits at December 31 $ 34 $ — $ — |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Calculations For Basic And Diluted Earnings Per Share | The table shows calculations for basic and diluted earnings per share: (In millions, except per share data) Years ended December 31, 2018 2017 2016 Numerator: Net income—basic and diluted $ 287 $ 1,045 $ 591 Denominator: Basic weighted-average common shares outstanding 163.2 164.2 164.5 Effect of share-based awards: Stock options 0.8 1.1 1.1 Nonvested shares 0.5 0.7 0.9 Diluted weighted-average shares 164.5 166.0 166.5 Earnings per share: Basic $ 1.76 $ 6.36 $ 3.59 Diluted 1.75 6.29 3.55 Number of anti-dilutive share-based awards 1.3 0.7 0.3 |
Employee Retirement Benefits (T
Employee Retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Benefit Obligation Activity Using An Actuarial Measurement Date For Qualified Plan And SERP | Benefit obligation activity using an actuarial measurement date for our qualified pension plan and SERP at December 31 follows: (Dollars in millions) At December 31, 2018 2017 Change in projected benefit obligation: Benefit obligation, January 1 $ 351 $ 340 Service cost 11 11 Interest cost 13 14 Actuarial (gain) loss (19 ) 20 Benefits paid (38 ) (34 ) Projected benefit obligation, December 31 $ 318 $ 351 Change in plan assets: Fair value of plan assets, January 1 $ 345 $ 315 Actual return on plan assets (4 ) 52 Employer contribution 15 12 Benefits paid (38 ) (34 ) Fair value of plan assets, December 31 $ 318 $ 345 Funded status, December 31 $ — $ (6 ) Accumulated benefit obligation $ 297 $ 322 |
Reconciliation Of The Funded Status For Qualified Plan And SERP | A reconciliation follows of the funded status for our qualified plan and SERP at the end of the measurement period to the amounts recognized in the consolidated balance sheets at December 31: (Dollars in millions) At December 31, 2018 2017 Pension amounts recognized in the consolidated balance sheets: Other liabilities $ — $ (6 ) Total $ — $ (6 ) Pension amounts recognized in accumulated other comprehensive income: Net actuarial loss $ 16 $ 12 Prior service cost — — Total $ 16 $ 12 |
Components Of Net Periodic Benefit Cost As Well As Other Changes In Plan Assets And Benefit Obligations Recognized In Other Comprehensive Income For Qualified Plan And SERP | Below are the components of our net periodic benefit cost, as well as other changes in plan assets and benefit obligations recognized in other comprehensive income for our qualified plan and SERP at December 31: (Dollars in millions) Years ended December 31, 2018 2017 2016 Net periodic benefit cost: Service cost $ 11 $ 11 $ 11 Non-service costs (benefit): Interest cost 13 14 14 Expected return on plan assets (22 ) (21 ) (19 ) Amortization of actuarial loss and prior service cost 1 2 3 Other 2 1 — Net periodic benefit cost $ 5 $ 7 $ 9 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Current year actuarial (gain) loss $ 7 $ (11 ) $ (13 ) Amortization of actuarial loss (3 ) (3 ) (2 ) Amortization of prior service cost — — (1 ) Total recognized in other comprehensive (income) loss $ 4 $ (14 ) $ (16 ) Total recognized in net periodic benefit cost and other comprehensive (income) loss $ 9 $ (7 ) $ (7 ) |
Fair Value Hierarchy Of Assets Measured At Fair Value On A Recurring Basis | (Dollars in millions) Quoted prices in Significant other Significant (Level 3) Total At December 31, 2018 Fixed maturities, available for sale: States, municipalities and political subdivisions $ — $ 29 $ — $ 29 Corporate — 37 — 37 United States Government 5 — — 5 Total fixed maturities, available for sale 5 66 — 71 Common equities 215 — — 215 Total $ 220 $ 66 $ — $ 286 At December 31, 2017 Fixed maturities, available for sale: States, municipalities and political subdivisions $ — $ 31 $ — $ 31 Corporate — 34 — 34 Total fixed maturities, available for sale — 65 — 65 Common equities, available for sale 262 — — 262 Total $ 262 $ 65 $ — $ 327 |
Expected Future Benefit Payments For Qualified Plan And SERP | We expect to make the following benefit payments for our qualified plan and SERP, reflecting expected future service: (Dollars in millions) Years ended December 31, 2019 2020 2021 2022 2023 2024 - 2028 Expected future benefit payments $ 43 $ 23 $ 22 $ 21 $ 22 $ 140 |
Benefit Obligations | |
Weighted-Average Assumptions Used | This is a summary of the weighted-average assumptions used to determine our benefit obligations at December 31 for the plans: Qualified Pension Plan SERP 2018 2017 2018 2017 Discount rate 4.34 % 3.73 % 4.25 % 3.61 % Rate of compensation increase 2.25-3.25 2.75-3.25 2.25-3.25 2.75-3.25 |
Net Periodic Benefit Cost | |
Weighted-Average Assumptions Used | This is a summary of the weighted-average assumptions used to determine our net periodic benefit cost for the plans: Qualified Pension Plan SERP 2018 2017 2016 2018 2017 2016 Discount rate 3.73 % 4.30 % 4.55 % 3.61 % 4.10 % 4.30 % Expected return on plan assets 7.25 7.25 7.25 n/a n/a n/a Rate of compensation increase 2.75-3.25 2.75-3.25 2.75-3.25 2.75-3.25 2.75-3.25 2.75-3.25 |
Statutory Accounting Informat_2
Statutory Accounting Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Staturory Accounting Information [Abstract] | |
Statutory Net Income And Statutory Surplus | The statutory net income and statutory capital and surplus are presented below: (Dollars in millions) Net income Capital and surplus Years ended December 31, At December 31, 2018 2017 2016 2018 2017 The Cincinnati Insurance Company $ 626 $ 401 $ 434 $ 4,919 $ 5,094 The Cincinnati Casualty Company 16 21 11 398 392 The Cincinnati Indemnity Company 5 4 4 102 100 The Cincinnati Specialty Underwriters Insurance Company 69 58 57 479 436 The Cincinnati Life Insurance Company — 12 2 191 195 |
Share-Based Associate Compens_2
Share-Based Associate Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Option Information | Below is a summary of option information for the year 2018 : (Dollars in millions, except exercise price. Shares in thousands) Shares Weighted- exercise price Aggregate Weighted-average Outstanding option shares at January 1, 2018 3,066 $ 49.14 Granted 757 71.19 Exercised (384 ) 37.00 Forfeited or expired (165 ) 40.90 Outstanding option shares at December 31, 2018 3,274 56.08 $ 68 6.08 years Options exercisable at end of period 2,004 $ 47.09 $ 60 4.47 years |
Restricted Stock Unit Information | elow is a summary of service-based and performance-based share information, assuming a target payout for performance-based shares, for the year 2018 : (Shares in thousands) Service-based Weighted- Performance-based Weighted- Nonvested at January 1, 2018 843 $ 56.16 206 $ 53.35 Granted 314 65.31 57 63.29 Vested (323 ) 49.23 (81 ) 45.73 Forfeited or canceled (21 ) 61.44 — — Nonvested at December 31, 2018 813 62.31 182 59.83 |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Assumptions Used In Option Grants Issued | The following weighted average assumptions were used in determining fair value for option grants issued: 2018 2017 2016 Weighted-average expected term 7-8 years 8 years 8 years Expected volatility 15.04-15.10% 16.95% 24.88-25.75% Dividend yield 2.98% 2.83% 2.58-3.12% Risk-free rates 2.77-2.83% 2.33% 1.44-1.60% Weighted-average fair value of options granted during the period $9.87 $10.79 $13.21 |
Performance Based Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Assumptions Used In Option Grants Issued | he following assumptions were used in determining fair value for performance-based grants issued: 2018 2017 2016 Expected term 2.89 years 2.89 years 2.44-2.88 years Expected volatility 16.01-26.32% 15.75-28.35% 15.42-33.64% Dividend yield 2.81% 2.83% 2.58-3.12% Risk-free rates 2.22% 1.44% 0.77-0.87% |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment information is summarized in the following table: (Dollars in millions) Years ended December 31, 2018 2017 2016 Revenues: Commercial lines insurance Commercial casualty $ 1,075 $ 1,072 $ 1,050 Commercial property 920 903 867 Commercial auto 664 634 594 Workers' compensation 324 335 354 Other commercial 235 221 224 Commercial lines insurance premiums 3,218 3,165 3,089 Fee revenues 5 5 5 Total commercial lines insurance 3,223 3,170 3,094 Personal lines insurance Personal auto 614 582 543 Homeowner 563 518 486 Other personal 159 141 132 Personal lines insurance premiums 1,336 1,241 1,161 Fee revenues 5 5 4 Total personal lines insurance 1,341 1,246 1,165 Excess and surplus lines insurance 234 209 183 Fee revenues 1 1 1 Total excess and surplus lines insurance 235 210 184 Life insurance premiums 250 232 228 Fee revenues 4 5 5 Total life insurance 254 237 233 Investments Investment income, net of expenses 619 609 595 Investment gains and losses, net (402 ) 148 124 Total investment revenue 217 757 719 Other Cincinnati Re insurance premiums 132 107 49 Other 5 5 5 Total other revenue 137 112 54 Total revenues $ 5,407 $ 5,732 $ 5,449 Income (loss) before income taxes: Insurance underwriting results Commercial lines insurance $ 151 $ 119 $ 184 Personal lines insurance (20 ) (32 ) (12 ) Excess and surplus lines insurance 63 61 62 Life insurance 8 (1 ) 1 Investments 121 664 629 Other (72 ) (81 ) (52 ) Total income before income taxes $ 251 $ 730 $ 812 December 31, December 31, Identifiable assets: 2018 2017 Property casualty insurance $ 3,285 $ 2,863 Life insurance 1,424 1,409 Investments 16,741 17,112 Other 485 459 Total $ 21,935 $ 21,843 |
Quarterly Supplementary Data (T
Quarterly Supplementary Data (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Financial Information | This table includes unaudited quarterly financial information for the years ended December 31, 2018 and 2017 : (Dollars in millions, except per share data) Quarter 1st 2nd 3rd 4th Full year 2018 Revenues $ 1,224 $ 1,558 $ 1,915 $ 710 $ 5,407 Income (loss) before income taxes (50 ) 264 618 (581 ) 251 Net income (loss) (31 ) 217 553 (452 ) 287 Net income (loss) per common share—basic (0.19 ) 1.33 3.40 (2.78 ) 1.76 Net income (loss) per common share—diluted (0.19 ) 1.32 3.38 (2.78 ) 1.75 2017 Revenues $ 1,523 $ 1,386 $ 1,412 $ 1,411 $ 5,732 Income before income taxes 276 128 129 197 730 Net income 201 100 102 642 1,045 Net income per common share—basic 1.22 0.61 0.62 3.92 6.36 Net income per common share—diluted 1.21 0.60 0.61 3.88 6.29 |
Summary Of Significant Accoun_3
Summary Of Significant Accounting Policies (Narrative) (Details) | 12 Months Ended | |||
Dec. 31, 2018USD ($)statesubsidiaryindependent_insurance_agencyreporting_locations | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2008 | |
Significant Accounting Policies | ||||
Unrealized gains reclassified to retained earnings for ASU 2016-01, after tax | $ 2,503,000,000 | |||
Income Tax Examination, Penalties Expense | $ 0 | |||
Number of operating subsidaries | subsidiary | 2 | |||
Number of independent insurance agencies | independent_insurance_agency | 1,757 | |||
Number of reporting locations | reporting_locations | 2,344 | |||
Number of states in which entity operates | state | 42 | |||
Defined Benefit Plan Qualifying Age | 40 years | |||
Current fair value of the BOLI invested assets and cash exceeded the current fair value of the contract holders' account value | $ 3,000,000 | $ 29,000,000 | ||
Other invested assets | 123,000,000 | 103,000,000 | ||
Depreciation expense | 31,000,000 | 28,000,000 | $ 30,000,000 | |
Land, building and equipment impairments | 0 | 0 | 0 | |
Total | $ 402,000,000 | (148,000,000) | (124,000,000) | |
Minimum | ||||
Significant Accounting Policies | ||||
Estimated useful lives | 3 years | |||
Maximum | ||||
Significant Accounting Policies | ||||
Estimated useful lives | 39 years 6 months | |||
Life Policy Loans | ||||
Significant Accounting Policies | ||||
Other invested assets | $ 33,000,000 | 31,000,000 | ||
Venture Capital Funds | ||||
Significant Accounting Policies | ||||
Other invested assets | 60,000,000 | 35,000,000 | ||
Real Estate Investment | ||||
Significant Accounting Policies | ||||
Other invested assets | $ 30,000,000 | $ 37,000,000 | ||
10 Largest States | ||||
Significant Accounting Policies | ||||
Generated percentage of total earned premiums | 58.40% | 59.70% | ||
Ohio, Largest State | ||||
Significant Accounting Policies | ||||
Generated percentage of total earned premiums | 15.90% | 16.20% | ||
Illinois, Georgia, Indiana, North Carolina and Pennsylvania | Minimum | ||||
Significant Accounting Policies | ||||
Generated percentage of total earned premiums | 5.00% | |||
Illinois, Georgia, Indiana, North Carolina and Pennsylvania | Maximum | ||||
Significant Accounting Policies | ||||
Generated percentage of total earned premiums | 6.00% | |||
Largest Single Agency Relationship | ||||
Significant Accounting Policies | ||||
Generated percentage of total earned premiums | 0.80% | |||
All Other | Maximum | ||||
Significant Accounting Policies | ||||
Generated percentage of total earned premiums | 4.00% | |||
Stock Options | ||||
Significant Accounting Policies | ||||
Weighted-average remaining contractual life for options expected to vest | 10 years | |||
Property Casualty Insurance Segment | ||||
Significant Accounting Policies | ||||
Number of operating subsidaries | subsidiary | 2 | |||
Stock Options | ||||
Significant Accounting Policies | ||||
Awards vesting period | 3 years | |||
Restricted Stock Units (RSUs) | ||||
Significant Accounting Policies | ||||
Awards vesting period | 3 years | |||
Equity Securities | ||||
Significant Accounting Policies | ||||
Total | $ 395,000,000 | $ (120,000,000) | (99,000,000) | |
Unrealized Gain (Loss) on Investments | $ 404,000,000 | $ 0 | $ 0 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Gain (Loss) on Investments | |||
Largest single common stock holding | $ 255 | ||
Largest equity holdings to total equity portfolio | 4.40% | ||
Largest equity holdings to total portfolio | 1.50% | ||
Investments in fair value, deposit with various states | $ 17,434 | $ 17,774 | |
Collateral at fair value | $ 75 | $ 57 | |
Impaired securities | 1 | 6 | 4 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate loss | $ 58 | $ 18 | $ 11 |
Fixed Maturities | |||
Gain (Loss) on Investments | |||
Number of securities total unrealized loss in an unrealized loss position for 12 months or more | 400 | 249 | 32 |
Number of securities below 70 percent of amortized cost | 0 | 0 | 0 |
Equity Securities | |||
Gain (Loss) on Investments | |||
Number of securities total unrealized loss in an unrealized loss position for 12 months or more | 0 | 0 | |
On Deposit With Various States | |||
Gain (Loss) on Investments | |||
Investments in fair value, deposit with various states | $ 112 | $ 101 |
Investments (Analysis Of Cost O
Investments (Analysis Of Cost Or Amortized Cost Gross Unrealized Gains And Losses And Fair Value For Investments) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fixed Maturities | ||
Schedule of Available-for-sale Securities | ||
Cost or amortized cost | $ 10,643 | $ 10,314 |
Gross unrealized gains | 174 | 409 |
Gross unrealized losses | 128 | 24 |
Fair value | 10,689 | 10,699 |
Fixed Maturities | Corporate Securities | ||
Schedule of Available-for-sale Securities | ||
Cost or amortized cost | 5,712 | 5,420 |
Gross unrealized gains | 85 | 246 |
Gross unrealized losses | 87 | 13 |
Fair value | 5,710 | 5,653 |
Fixed Maturities | States, Municipalities and Political Subdivisions | ||
Schedule of Available-for-sale Securities | ||
Cost or amortized cost | 4,251 | 4,316 |
Gross unrealized gains | 84 | 155 |
Gross unrealized losses | 31 | 6 |
Fair value | 4,304 | 4,465 |
Fixed Maturities | Commercial Mortgage Backed Securities | ||
Schedule of Available-for-sale Securities | ||
Cost or amortized cost | 287 | 280 |
Gross unrealized gains | 3 | 7 |
Gross unrealized losses | 2 | 1 |
Fair value | 288 | 286 |
Fixed Maturities | Government-Sponsored Enterprises | ||
Schedule of Available-for-sale Securities | ||
Cost or amortized cost | 316 | 257 |
Gross unrealized gains | 1 | 1 |
Gross unrealized losses | 7 | 4 |
Fair value | 310 | 254 |
Fixed Maturities | United States Government | ||
Schedule of Available-for-sale Securities | ||
Cost or amortized cost | 67 | 31 |
Gross unrealized gains | 1 | 0 |
Gross unrealized losses | 1 | 0 |
Fair value | 67 | 31 |
Fixed Maturities | Foreign Government | ||
Schedule of Available-for-sale Securities | ||
Cost or amortized cost | 10 | 10 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Fair value | $ 10 | 10 |
Equity Securities | ||
Schedule of Available-for-sale Securities | ||
Cost or amortized cost | 3,094 | |
Gross unrealized gains | 3,169 | |
Gross unrealized losses | 14 | |
Fair value | 6,249 | |
Equity Securities | Common Equities | ||
Schedule of Available-for-sale Securities | ||
Cost or amortized cost | 2,918 | |
Gross unrealized gains | 3,135 | |
Gross unrealized losses | 14 | |
Fair value | 6,039 | |
Equity Securities | Nonredeemable Preferred Equities | ||
Schedule of Available-for-sale Securities | ||
Cost or amortized cost | 176 | |
Gross unrealized gains | 34 | |
Gross unrealized losses | 0 | |
Fair value | 210 | |
Fixed Maturities And Equity Securities | ||
Schedule of Available-for-sale Securities | ||
Cost or amortized cost | 13,408 | |
Gross unrealized gains | 3,578 | |
Gross unrealized losses | 38 | |
Fair value | $ 16,948 |
Investments (Fair Values And Un
Investments (Fair Values And Unrealized Losses By Investment Category And By The Duration Of The Securities' Continuous Unrealized Loss Position) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Investments, Unrealized Loss Position | ||
Less than 12 months fair value | $ 809 | |
Less than 12 Months, Unrealized losses | 20 | |
12 months or more fair value | 682 | |
12 Months or more, unrealized losses | 18 | |
Total fair value | 1,491 | |
Total Unrealized Losses | 38 | |
Fixed Maturities | ||
Investments, Unrealized Loss Position | ||
Less than 12 months fair value | $ 3,031 | 580 |
Less than 12 Months, Unrealized losses | 70 | 6 |
12 months or more fair value | 1,149 | 682 |
12 Months or more, unrealized losses | 58 | 18 |
Total fair value | 4,180 | 1,262 |
Total Unrealized Losses | 128 | 24 |
Fixed Maturities | Corporate Securities | ||
Investments, Unrealized Loss Position | ||
Less than 12 months fair value | 2,082 | 330 |
Less than 12 Months, Unrealized losses | 51 | 4 |
12 months or more fair value | 501 | 252 |
12 Months or more, unrealized losses | 36 | 9 |
Total fair value | 2,583 | 582 |
Total Unrealized Losses | 87 | 13 |
Fixed Maturities | States, Municipalities and Political Subdivisions | ||
Investments, Unrealized Loss Position | ||
Less than 12 months fair value | 823 | 88 |
Less than 12 Months, Unrealized losses | 18 | 1 |
12 months or more fair value | 340 | 264 |
12 Months or more, unrealized losses | 13 | 5 |
Total fair value | 1,163 | 352 |
Total Unrealized Losses | 31 | 6 |
Fixed Maturities | Commercial Mortgage Backed Securities | ||
Investments, Unrealized Loss Position | ||
Less than 12 months fair value | 77 | 33 |
Less than 12 Months, Unrealized losses | 0 | 0 |
12 months or more fair value | 64 | 36 |
12 Months or more, unrealized losses | 2 | 1 |
Total fair value | 141 | 69 |
Total Unrealized Losses | 2 | 1 |
Fixed Maturities | Government-Sponsored Enterprises | ||
Investments, Unrealized Loss Position | ||
Less than 12 months fair value | 49 | 96 |
Less than 12 Months, Unrealized losses | 1 | 1 |
12 months or more fair value | 211 | 124 |
12 Months or more, unrealized losses | 6 | 3 |
Total fair value | 260 | 220 |
Total Unrealized Losses | 7 | 4 |
Fixed Maturities | Foreign government | ||
Investments, Unrealized Loss Position | ||
Less than 12 months fair value | 10 | |
Less than 12 Months, Unrealized losses | 0 | |
12 months or more fair value | 0 | |
12 Months or more, unrealized losses | 0 | |
Total fair value | 10 | |
Total Unrealized Losses | 0 | |
Fixed Maturities | United States Government | ||
Investments, Unrealized Loss Position | ||
Less than 12 months fair value | 0 | 23 |
Less than 12 Months, Unrealized losses | 0 | 0 |
12 months or more fair value | 33 | 6 |
12 Months or more, unrealized losses | 1 | 0 |
Total fair value | 33 | 29 |
Total Unrealized Losses | $ 1 | 0 |
Equity Securities | ||
Investments, Unrealized Loss Position | ||
Less than 12 months fair value | 229 | |
Less than 12 Months, Unrealized losses | 14 | |
12 months or more fair value | 0 | |
12 Months or more, unrealized losses | 0 | |
Total fair value | 229 | |
Total Unrealized Losses | 14 | |
Equity Securities | Common Equities | ||
Investments, Unrealized Loss Position | ||
Less than 12 months fair value | 229 | |
Less than 12 Months, Unrealized losses | 14 | |
12 months or more fair value | 0 | |
12 Months or more, unrealized losses | 0 | |
Total fair value | 229 | |
Total Unrealized Losses | $ 14 |
Investments (Contractual Maturi
Investments (Contractual Maturity Dates For Fixed-Maturity And Short-Term Investments) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Amortized cost | ||
Due in one year or less | $ 586 | |
Due after one year through five years | 2,894 | |
Due after five years through ten years | 3,663 | |
Due after ten years | 3,500 | |
Total | 10,643 | $ 10,314 |
Fair value | ||
Due in one year or less | 592 | |
Due after one year through five years | 2,912 | |
Due after five years through ten years | 3,653 | |
Due after ten years | 3,532 | |
Total | $ 10,689 | $ 10,699 |
% of fair value | ||
Due in one year or less | 5.50% | |
Due after one year through five years | 27.30% | |
Due after five years through ten years | 34.20% | |
Due after ten years | 33.00% | |
Total | 100.00% |
Investments (Investment Income
Investments (Investment Income Realized Investment Gains And Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investment income: | |||
Interest | $ 445 | $ 445 | $ 440 |
Dividends | 181 | 170 | 161 |
Other | 5 | 4 | 3 |
Total | 631 | 619 | 604 |
Less investment expenses | 12 | 10 | 9 |
Total | 619 | 609 | 595 |
Gain (Loss) on Sale of Investments | (408) | 148 | 124 |
Investment gains and losses, net: | |||
Other | (12) | 9 | 2 |
Total | (402) | 148 | 124 |
Fixed Maturities | |||
Investment gains and losses, net: | |||
Gross realized gains | 12 | 25 | 26 |
Gross realized losses | (2) | 0 | (1) |
Other-than-temporary impairments | (5) | (6) | (2) |
Total | 5 | 19 | 23 |
Equity Securities | |||
Investment income: | |||
Gain (Loss) on Sale of Investments | 9 | 0 | 0 |
Unrealized Gain (Loss) on Investments | (404) | 0 | 0 |
Investment gains and losses, net: | |||
Gross realized gains | 0 | 195 | 152 |
Gross realized losses | 0 | (72) | (53) |
Other-than-temporary impairments | 0 | (3) | 0 |
Total | $ (395) | $ 120 | $ 99 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Principal amount of debt | $ 793 | $ 793 |
Recorded outstanding principal and interest for these life policy loans | 71 | 61 |
Reserves for structured settlements | $ 5,707 | $ 5,273 |
Maximum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Percentage of Level 3 assets measured at fair value | 1.00% | 1.00% |
Life Policy Loans | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Recorded outstanding principal and interest for these life policy loans | $ 33 | $ 31 |
Deferred Annuities and Structured Settlements | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Recorded reserves for the deferred annuities | 787 | 835 |
Reserves for structured settlements | $ 156 | $ 161 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Hierarchy For Assets Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Available for sale securities, debt securities | $ 10,689 | $ 10,699 |
Available for sale securities, equity securities | 5,920 | 6,249 |
Separate accounts taxable fixed maturities | 803 | 806 |
Total | 17,434 | 17,774 |
Top Hat Savings Plan - Mutual Funds and Common Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Top Hat savings plan mutual funds and common equity (included in Other assets) | 34 | 31 |
Fixed Maturities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Available for sale securities, debt securities | 10,689 | 10,699 |
Fixed Maturities | Corporate Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Available for sale securities, debt securities | 5,710 | 5,653 |
Fixed Maturities | States, Municipalities and Political Subdivisions | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Available for sale securities, debt securities | 4,304 | 4,465 |
Fixed Maturities | Commercial Mortgage Backed Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Available for sale securities, debt securities | 288 | 286 |
Fixed Maturities | Government-Sponsored Enterprises | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Available for sale securities, debt securities | 310 | 254 |
Fixed Maturities | Foreign Government | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Available for sale securities, debt securities | 10 | 10 |
Fixed Maturities | United States Government | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Available for sale securities, debt securities | 67 | 31 |
Equity Securities | Common Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Available for sale securities, equity securities | 5,742 | 6,039 |
Equity Securities | Nonredeemable Preferred Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Available for sale securities, equity securities | 178 | 210 |
Taxable Fixed Maturities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Separate accounts taxable fixed maturities | 791 | 795 |
Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Total | 5,843 | 6,101 |
Level 1 | Top Hat Savings Plan - Mutual Funds and Common Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Top Hat savings plan mutual funds and common equity (included in Other assets) | 34 | 31 |
Level 1 | Fixed Maturities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Available for sale securities, debt securities | 67 | 31 |
Level 1 | Fixed Maturities | Corporate Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Available for sale securities, debt securities | 0 | 0 |
Level 1 | Fixed Maturities | States, Municipalities and Political Subdivisions | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Available for sale securities, debt securities | 0 | 0 |
Level 1 | Fixed Maturities | Commercial Mortgage Backed Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Available for sale securities, debt securities | 0 | 0 |
Level 1 | Fixed Maturities | Government-Sponsored Enterprises | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Available for sale securities, debt securities | 0 | 0 |
Level 1 | Fixed Maturities | Foreign Government | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Available for sale securities, debt securities | 0 | 0 |
Level 1 | Fixed Maturities | United States Government | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Available for sale securities, debt securities | 67 | 31 |
Level 1 | Equity Securities | Common Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Available for sale securities, equity securities | 5,742 | 6,039 |
Level 1 | Equity Securities | Nonredeemable Preferred Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Available for sale securities, equity securities | 0 | 0 |
Level 1 | Taxable Fixed Maturities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Separate accounts taxable fixed maturities | 0 | 0 |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Total | 11,586 | 11,667 |
Level 2 | Top Hat Savings Plan - Mutual Funds and Common Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Top Hat savings plan mutual funds and common equity (included in Other assets) | 0 | 0 |
Level 2 | Fixed Maturities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Available for sale securities, debt securities | 10,617 | 10,662 |
Level 2 | Fixed Maturities | Corporate Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Available for sale securities, debt securities | 5,709 | 5,652 |
Level 2 | Fixed Maturities | States, Municipalities and Political Subdivisions | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Available for sale securities, debt securities | 4,300 | 4,460 |
Level 2 | Fixed Maturities | Commercial Mortgage Backed Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Available for sale securities, debt securities | 288 | 286 |
Level 2 | Fixed Maturities | Government-Sponsored Enterprises | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Available for sale securities, debt securities | 310 | 254 |
Level 2 | Fixed Maturities | Foreign Government | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Available for sale securities, debt securities | 10 | 10 |
Level 2 | Fixed Maturities | United States Government | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Available for sale securities, debt securities | 0 | 0 |
Level 2 | Equity Securities | Common Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Available for sale securities, equity securities | 0 | 0 |
Level 2 | Equity Securities | Nonredeemable Preferred Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Available for sale securities, equity securities | 178 | 210 |
Level 2 | Taxable Fixed Maturities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Separate accounts taxable fixed maturities | 791 | 795 |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Total | 5 | 6 |
Level 3 | Top Hat Savings Plan - Mutual Funds and Common Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Top Hat savings plan mutual funds and common equity (included in Other assets) | 0 | 0 |
Level 3 | Fixed Maturities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Available for sale securities, debt securities | 5 | 6 |
Level 3 | Fixed Maturities | Corporate Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Available for sale securities, debt securities | 1 | 1 |
Level 3 | Fixed Maturities | States, Municipalities and Political Subdivisions | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Available for sale securities, debt securities | 4 | 5 |
Level 3 | Fixed Maturities | Commercial Mortgage Backed Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Available for sale securities, debt securities | 0 | 0 |
Level 3 | Fixed Maturities | Government-Sponsored Enterprises | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Available for sale securities, debt securities | 0 | 0 |
Level 3 | Fixed Maturities | Foreign Government | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Available for sale securities, debt securities | 0 | 0 |
Level 3 | Fixed Maturities | United States Government | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Available for sale securities, debt securities | 0 | 0 |
Level 3 | Equity Securities | Common Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Available for sale securities, equity securities | 0 | 0 |
Level 3 | Equity Securities | Nonredeemable Preferred Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Available for sale securities, equity securities | 0 | 0 |
Level 3 | Taxable Fixed Maturities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Separate accounts taxable fixed maturities | $ 0 | $ 0 |
Fair Value Measurements (Asset
Fair Value Measurements (Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3)) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Beginning balance | $ 6 | $ 78 |
Total gains or losses (realized/unrealized): | ||
Included in net income | 0 | 0 |
Included in other comprehensive income | (1) | 0 |
Purchases | 0 | 5 |
Sales | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | (77) |
Ending balance | 5 | 6 |
Corporate Fixed Maturities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Beginning balance | 1 | 78 |
Total gains or losses (realized/unrealized): | ||
Included in net income | 0 | 0 |
Included in other comprehensive income | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | (77) |
Ending balance | 1 | 1 |
States, Municipalities and Political Subdivisions | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Beginning balance | 5 | 0 |
Total gains or losses (realized/unrealized): | ||
Included in net income | 0 | 0 |
Included in other comprehensive income | (1) | 0 |
Purchases | 0 | 5 |
Sales | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Ending balance | $ 4 | $ 5 |
Fair Value Measurements (Fair_2
Fair Value Measurements (Fair Value of Note Payable and Long-Term Debt) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of note payable | $ 32 | $ 24 |
Total | 975 | 1,040 |
6.900% Senior Debentures, Due 2028 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of senior debt | $ 32 | $ 34 |
Interest rate | 6.90% | 6.90% |
Debt instrument, year of maturity | 2,028 | 2,028 |
6.920% Senior Debentures, Due 2028 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of senior debt | $ 471 | $ 505 |
Interest rate | 6.92% | 6.92% |
Debt instrument, year of maturity | 2,028 | 2,028 |
6.125% Senior Notes, Due 2034 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of senior debt | $ 440 | $ 477 |
Interest rate | 6.125% | 6.125% |
Debt instrument, year of maturity | 2,034 | 2,034 |
Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of note payable | $ 0 | $ 0 |
Total | 0 | 0 |
Level 1 | 6.900% Senior Debentures, Due 2028 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of senior debt | 0 | 0 |
Level 1 | 6.920% Senior Debentures, Due 2028 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of senior debt | 0 | 0 |
Level 1 | 6.125% Senior Notes, Due 2034 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of senior debt | 0 | 0 |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of note payable | 32 | 24 |
Total | 975 | 1,040 |
Level 2 | 6.900% Senior Debentures, Due 2028 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of senior debt | 32 | 34 |
Level 2 | 6.920% Senior Debentures, Due 2028 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of senior debt | 471 | 505 |
Level 2 | 6.125% Senior Notes, Due 2034 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of senior debt | 440 | 477 |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of note payable | 0 | 0 |
Total | 0 | 0 |
Level 3 | 6.900% Senior Debentures, Due 2028 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of senior debt | 0 | 0 |
Level 3 | 6.920% Senior Debentures, Due 2028 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of senior debt | 0 | 0 |
Level 3 | 6.125% Senior Notes, Due 2034 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of senior debt | $ 0 | $ 0 |
Fair Value Measurements (Fair_3
Fair Value Measurements (Fair Value of Life Policy) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of life policy loans | $ 40 | $ 41 |
Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of life policy loans | 0 | 0 |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of life policy loans | 0 | 0 |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of life policy loans | $ 40 | $ 41 |
Fair Value Measurements (Fair_4
Fair Value Measurements (Fair Value Of Deferred Annuities, Structured Settlements And Other Items) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of deferred annuities and structured settlements | $ 927 | $ 1,044 |
Deferred Annuities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of deferred annuities and structured settlements | 742 | 834 |
Structured Settlements | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of deferred annuities and structured settlements | 185 | 210 |
Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of deferred annuities and structured settlements | 0 | 0 |
Level 1 | Deferred Annuities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of deferred annuities and structured settlements | 0 | 0 |
Level 1 | Structured Settlements | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of deferred annuities and structured settlements | 0 | 0 |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of deferred annuities and structured settlements | 185 | 210 |
Level 2 | Deferred Annuities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of deferred annuities and structured settlements | 0 | 0 |
Level 2 | Structured Settlements | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of deferred annuities and structured settlements | 185 | 210 |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of deferred annuities and structured settlements | 742 | 834 |
Level 3 | Deferred Annuities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of deferred annuities and structured settlements | 742 | 834 |
Level 3 | Structured Settlements | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of deferred annuities and structured settlements | $ 0 | $ 0 |
Property Casualty Loss And Lo_3
Property Casualty Loss And Loss Expenses (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplemental Information for Property, Casualty Insurance Underwriters [Line Items] | ||||
Certain accident, life and health loss reserves | $ 5,646,000,000 | $ 5,219,000,000 | $ 5,035,000,000 | $ 4,660,000,000 |
Prior year claims and claims adjustments expense, (favorable) and unfavorable | (167,000,000) | (119,000,000) | (168,000,000) | |
Net loss and loss expense reserves for asbestos and environmental claims | $ 89,000,000 | $ 84,000,000 | ||
Percentage of reserves for asbestos and environmental claims | 2.00% | 2.00% | ||
Maximum | ||||
Supplemental Information for Property, Casualty Insurance Underwriters [Line Items] | ||||
Reinsurance retention | $ 500,000 | |||
Life and Health Loss Reserves | ||||
Supplemental Information for Property, Casualty Insurance Underwriters [Line Items] | ||||
Certain accident, life and health loss reserves | 61,000,000 | $ 54,000,000 | 50,000,000 | |
Commercial Insurance | ||||
Supplemental Information for Property, Casualty Insurance Underwriters [Line Items] | ||||
Prior year claims and claims adjustments expense, (favorable) and unfavorable | (157,000,000) | (73,000,000) | (129,000,000) | |
Commercial Insurance | Workers' Compensation Line | ||||
Supplemental Information for Property, Casualty Insurance Underwriters [Line Items] | ||||
Certain accident, life and health loss reserves | 991,000,000 | |||
Prior year claims and claims adjustments expense, (favorable) and unfavorable | (58,000,000) | (54,000,000) | (69,000,000) | |
Commercial Insurance | Commercial Property Line | ||||
Supplemental Information for Property, Casualty Insurance Underwriters [Line Items] | ||||
Certain accident, life and health loss reserves | 314,000,000 | |||
Prior year claims and claims adjustments expense, (favorable) and unfavorable | (47,000,000) | (33,000,000) | (29,000,000) | |
Commercial Insurance | Other Commercial Lines | ||||
Supplemental Information for Property, Casualty Insurance Underwriters [Line Items] | ||||
Prior year claims and claims adjustments expense, (favorable) and unfavorable | (30,000,000) | (42,000,000) | ||
Commercial Insurance | Commercial Casualty Line | ||||
Supplemental Information for Property, Casualty Insurance Underwriters [Line Items] | ||||
Certain accident, life and health loss reserves | 2,158,000,000 | |||
Prior year claims and claims adjustments expense, (favorable) and unfavorable | (47,000,000) | 11,000,000 | (20,000,000) | |
Commercial Insurance | Commercial Auto Line | ||||
Supplemental Information for Property, Casualty Insurance Underwriters [Line Items] | ||||
Certain accident, life and health loss reserves | 637,000,000 | |||
Prior year claims and claims adjustments expense, (favorable) and unfavorable | 33,000,000 | 31,000,000 | ||
Personal Insurance | ||||
Supplemental Information for Property, Casualty Insurance Underwriters [Line Items] | ||||
Prior year claims and claims adjustments expense, (favorable) and unfavorable | 13,000,000 | (14,000,000) | (4,000,000) | |
Personal Insurance | Personal Auto | ||||
Supplemental Information for Property, Casualty Insurance Underwriters [Line Items] | ||||
Certain accident, life and health loss reserves | 324,000,000 | |||
Prior year claims and claims adjustments expense, (favorable) and unfavorable | 18,000,000 | |||
Excess and Surplus Lines Insurance | ||||
Supplemental Information for Property, Casualty Insurance Underwriters [Line Items] | ||||
Certain accident, life and health loss reserves | 284,000,000 | |||
Prior year claims and claims adjustments expense, (favorable) and unfavorable | (24,000,000) | (29,000,000) | (34,000,000) | |
Reinsurance assumed and other non segment [Member] | ||||
Supplemental Information for Property, Casualty Insurance Underwriters [Line Items] | ||||
Prior year claims and claims adjustments expense, (favorable) and unfavorable | $ 1,000,000 | $ (3,000,000) | $ (1,000,000) |
Property Casualty Loss And Lo_4
Property Casualty Loss And Loss Expenses (Consolidated Property Casualty Loss And Loss Expense Reserves) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Insurance [Abstract] | |||
Gross loss and loss expense reserves, January 1 | $ 5,219 | $ 5,035 | $ 4,660 |
Less reinsurance recoverable | 187 | 298 | 281 |
Net loss and loss expense reserves, January 1 | 5,032 | 4,737 | 4,379 |
Net incurred loss and loss expenses related to: | |||
Current accident year | 3,390 | 3,257 | 3,029 |
Prior accident years | (167) | (119) | (168) |
Total incurred | 3,223 | 3,138 | 2,861 |
Net paid loss and loss expenses related to: | |||
Current accident year | 1,391 | 1,404 | 1,260 |
Prior accident years | 1,456 | 1,439 | 1,243 |
Total paid | 2,847 | 2,843 | 2,503 |
Net loss and loss expense reserves, December 31 | 5,408 | 5,032 | 4,737 |
Plus reinsurance recoverable | 238 | 187 | 298 |
Gross loss and loss expense reserves, December 31 | $ 5,646 | $ 5,219 | $ 5,035 |
Property Casualty Loss And Lo_5
Property Casualty Loss And Loss Expenses (Reconciliation of Incurred Losses and ALAE) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Cumulative incurred losses and ALAE as reported within the triangles, net of reinsurance | $ 2,588 | |||
Total liabilities for loss and ALAE, net of reinsurance | 5,366 | |||
Reinsurance recoverable on unpaid losses | 238 | $ 187 | $ 298 | $ 281 |
Unallocated loss adjustment expense reserves | 280 | |||
Total liabilities for gross loss and loss expense reserves | 5,646 | $ 5,219 | $ 5,035 | $ 4,660 |
Other Short-duration Insurance Product Line | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Total liabilities for loss and ALAE, net of reinsurance | 483 | |||
Commercial Insurance | Commercial Casualty Line | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Cumulative incurred losses and ALAE as reported within the triangles, net of reinsurance | 4,671 | |||
Cumulative paid losses and ALAE as reported within the triangles, net of reinsurance | 2,658 | |||
Liabilities for loss and ALAE for accident years not presented in the triangles, net of reinsurance | 94 | |||
Total liabilities for loss and ALAE, net of reinsurance | 2,107 | |||
Reinsurance recoverable on unpaid losses | 51 | |||
Total liabilities for gross loss and loss expense reserves | 2,158 | |||
Commercial Insurance | Workers' Compensation Line | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Cumulative incurred losses and ALAE as reported within the triangles, net of reinsurance | 2,142 | |||
Cumulative paid losses and ALAE as reported within the triangles, net of reinsurance | 1,493 | |||
Liabilities for loss and ALAE for accident years not presented in the triangles, net of reinsurance | 283 | |||
Total liabilities for loss and ALAE, net of reinsurance | 932 | |||
Reinsurance recoverable on unpaid losses | 59 | |||
Total liabilities for gross loss and loss expense reserves | 991 | |||
Commercial Insurance | Commercial Auto Line | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Cumulative incurred losses and ALAE as reported within the triangles, net of reinsurance | 2,104 | |||
Cumulative paid losses and ALAE as reported within the triangles, net of reinsurance | 1,486 | |||
Liabilities for loss and ALAE for accident years not presented in the triangles, net of reinsurance | 14 | |||
Total liabilities for loss and ALAE, net of reinsurance | 632 | |||
Reinsurance recoverable on unpaid losses | 5 | |||
Total liabilities for gross loss and loss expense reserves | 637 | |||
Commercial Insurance | Commercial Property Line | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Cumulative incurred losses and ALAE as reported within the triangles, net of reinsurance | 2,588 | |||
Cumulative paid losses and ALAE as reported within the triangles, net of reinsurance | 2,287 | |||
Liabilities for loss and ALAE for accident years not presented in the triangles, net of reinsurance | 13 | |||
Total liabilities for loss and ALAE, net of reinsurance | 314 | |||
Reinsurance recoverable on unpaid losses | 0 | |||
Total liabilities for gross loss and loss expense reserves | 314 | |||
Personal Insurance | Personal Auto | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Cumulative incurred losses and ALAE as reported within the triangles, net of reinsurance | 1,889 | |||
Cumulative paid losses and ALAE as reported within the triangles, net of reinsurance | 1,603 | |||
Liabilities for loss and ALAE for accident years not presented in the triangles, net of reinsurance | 4 | |||
Total liabilities for loss and ALAE, net of reinsurance | 290 | |||
Reinsurance recoverable on unpaid losses | 34 | |||
Total liabilities for gross loss and loss expense reserves | 324 | |||
Personal Insurance | Home Owner Line | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Cumulative incurred losses and ALAE as reported within the triangles, net of reinsurance | 1,614 | |||
Cumulative paid losses and ALAE as reported within the triangles, net of reinsurance | 1,474 | |||
Liabilities for loss and ALAE for accident years not presented in the triangles, net of reinsurance | 3 | |||
Total liabilities for loss and ALAE, net of reinsurance | 143 | |||
Reinsurance recoverable on unpaid losses | 32 | |||
Total liabilities for gross loss and loss expense reserves | 175 | |||
Excess and Surplus Lines Insurance | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Cumulative incurred losses and ALAE as reported within the triangles, net of reinsurance | 532 | |||
Cumulative paid losses and ALAE as reported within the triangles, net of reinsurance | 256 | |||
Liabilities for loss and ALAE for accident years not presented in the triangles, net of reinsurance | 1 | |||
Total liabilities for loss and ALAE, net of reinsurance | 277 | |||
Reinsurance recoverable on unpaid losses | 7 | |||
Total liabilities for gross loss and loss expense reserves | $ 284 |
Property Casualty Loss And Lo_6
Property Casualty Loss And Loss Expenses (Claims Development - Commercial Casualty) (Details) reported_claim in Thousands, $ in Millions | Dec. 31, 2018USD ($)reported_claim | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2009USD ($) |
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance | $ 2,588 | |||||||||
Liabilities for loss and ALAE, net of reinsurance | 5,366 | |||||||||
Commercial Casualty Line | Commercial Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance | 4,671 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | 2,658 | |||||||||
All outstanding liabilities before, net of reinsurance | 94 | |||||||||
Liabilities for loss and ALAE, net of reinsurance | 2,107 | |||||||||
2009 | Commercial Casualty Line | Commercial Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance | 360 | $ 353 | $ 357 | $ 357 | $ 365 | $ 370 | $ 360 | $ 412 | $ 409 | $ 484 |
Total of incurred but not reported liabilities plus expected development on reported losses | $ 13 | |||||||||
Cumulative number of reported claims | reported_claim | 20 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 338 | 328 | 322 | 310 | 295 | 267 | 213 | 151 | 75 | $ 27 |
2010 | Commercial Casualty Line | Commercial Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance | 341 | 343 | 349 | 348 | 347 | 349 | 378 | 394 | 495 | |
Total of incurred but not reported liabilities plus expected development on reported losses | $ 16 | |||||||||
Cumulative number of reported claims | reported_claim | 20 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 318 | 314 | 300 | 285 | 256 | 203 | 159 | 92 | $ 33 | |
2011 | Commercial Casualty Line | Commercial Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance | 365 | 366 | 380 | 375 | 377 | 377 | 404 | 466 | ||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 13 | |||||||||
Cumulative number of reported claims | reported_claim | 19 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 325 | 315 | 298 | 266 | 227 | 149 | 93 | $ 27 | ||
2012 | Commercial Casualty Line | Commercial Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance | 399 | 404 | 394 | 394 | 417 | 414 | 466 | |||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 29 | |||||||||
Cumulative number of reported claims | reported_claim | 18 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 346 | 330 | 288 | 232 | 170 | 88 | $ 27 | |||
2013 | Commercial Casualty Line | Commercial Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance | 407 | 413 | 416 | 431 | 443 | 448 | ||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 53 | |||||||||
Cumulative number of reported claims | reported_claim | 19 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 312 | 286 | 232 | 159 | 90 | $ 35 | ||||
2014 | Commercial Casualty Line | Commercial Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance | 479 | 476 | 479 | 496 | 503 | |||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 66 | |||||||||
Cumulative number of reported claims | reported_claim | 21 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 338 | 287 | 172 | 97 | $ 34 | |||||
2015 | Commercial Casualty Line | Commercial Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance | 516 | 529 | 526 | 533 | ||||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 105 | |||||||||
Cumulative number of reported claims | reported_claim | 21 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 287 | 200 | 108 | $ 38 | ||||||
2016 | Commercial Casualty Line | Commercial Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance | 557 | 574 | 563 | |||||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 152 | |||||||||
Cumulative number of reported claims | reported_claim | 21 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 228 | 126 | $ 46 | |||||||
2017 | Commercial Casualty Line | Commercial Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance | 597 | 610 | ||||||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 262 | |||||||||
Cumulative number of reported claims | reported_claim | 19 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 122 | $ 48 | ||||||||
2018 | Commercial Casualty Line | Commercial Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance | 650 | |||||||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 406 | |||||||||
Cumulative number of reported claims | reported_claim | 16 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 44 |
Property Casualty Loss And Lo_7
Property Casualty Loss And Loss Expenses (Claims Development - Workers Compensation) (Details) reported_claim in Thousands, $ in Millions | Dec. 31, 2018USD ($)reported_claim | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2009USD ($) |
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance | $ 2,588 | |||||||||
Liabilities for loss and ALAE, net of reinsurance | 5,366 | |||||||||
Workers' Compensation Line | Commercial Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance | 2,142 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | 1,493 | |||||||||
All outstanding liabilities before, net of reinsurance | 283 | |||||||||
Liabilities for loss and ALAE, net of reinsurance | 932 | |||||||||
2009 | Workers' Compensation Line | Commercial Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance | 231 | $ 232 | $ 234 | $ 234 | $ 235 | $ 238 | $ 238 | $ 263 | $ 278 | $ 307 |
Total of incurred but not reported liabilities plus expected development on reported losses | $ 17 | |||||||||
Cumulative number of reported claims | reported_claim | 27 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 204 | 202 | 201 | 198 | 193 | 188 | 179 | 163 | 132 | $ 65 |
2010 | Workers' Compensation Line | Commercial Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance | 236 | 237 | 240 | 239 | 240 | 242 | 248 | 274 | 283 | |
Total of incurred but not reported liabilities plus expected development on reported losses | $ 20 | |||||||||
Cumulative number of reported claims | reported_claim | 26 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 207 | 204 | 202 | 198 | 192 | 181 | 164 | 134 | $ 67 | |
2011 | Workers' Compensation Line | Commercial Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance | 229 | 231 | 236 | 239 | 242 | 246 | 251 | 284 | ||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 20 | |||||||||
Cumulative number of reported claims | reported_claim | 24 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 195 | 192 | 190 | 186 | 177 | 161 | 131 | $ 65 | ||
2012 | Workers' Compensation Line | Commercial Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance | 209 | 211 | 213 | 220 | 234 | 245 | 265 | |||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 22 | |||||||||
Cumulative number of reported claims | reported_claim | 21 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 178 | 175 | 171 | 162 | 147 | 121 | $ 62 | |||
2013 | Workers' Compensation Line | Commercial Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance | 205 | 208 | 212 | 221 | 246 | 264 | ||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 23 | |||||||||
Cumulative number of reported claims | reported_claim | 20 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 168 | 164 | 157 | 144 | 119 | $ 61 | ||||
2014 | Workers' Compensation Line | Commercial Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance | 201 | 203 | 214 | 233 | 261 | |||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 20 | |||||||||
Cumulative number of reported claims | reported_claim | 19 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 157 | 148 | 134 | 110 | $ 56 | |||||
2015 | Workers' Compensation Line | Commercial Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance | 195 | 208 | 220 | 246 | ||||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 46 | |||||||||
Cumulative number of reported claims | reported_claim | 17 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 129 | 115 | 93 | $ 47 | ||||||
2016 | Workers' Compensation Line | Commercial Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance | 206 | 218 | 230 | |||||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 51 | |||||||||
Cumulative number of reported claims | reported_claim | 16 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 119 | 97 | $ 46 | |||||||
2017 | Workers' Compensation Line | Commercial Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance | 208 | 218 | ||||||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 74 | |||||||||
Cumulative number of reported claims | reported_claim | 15 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 88 | $ 45 | ||||||||
2018 | Workers' Compensation Line | Commercial Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses and ALAE, net of reinsurance | 222 | |||||||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 99 | |||||||||
Cumulative number of reported claims | reported_claim | 13 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 48 |
Property Casualty Loss And Lo_8
Property Casualty Loss And Loss Expenses (Claims Development - Commercial Auto) (Details) reported_claim in Thousands, $ in Millions | Dec. 31, 2018USD ($)reported_claim | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Claims Development [Line Items] | |||||
Incurred losses and ALAE, net of reinsurance | $ 2,588 | ||||
Liabilities for loss and ALAE, net of reinsurance | 5,366 | ||||
Commercial Auto Line | Commercial Insurance | |||||
Claims Development [Line Items] | |||||
Incurred losses and ALAE, net of reinsurance | 2,104 | ||||
Cumulative paid losses and ALAE, net of reinsurance | 1,486 | ||||
All outstanding liabilities before, net of reinsurance | 14 | ||||
Liabilities for loss and ALAE, net of reinsurance | 632 | ||||
2014 | Commercial Auto Line | Commercial Insurance | |||||
Claims Development [Line Items] | |||||
Incurred losses and ALAE, net of reinsurance | 359 | $ 358 | $ 351 | $ 346 | $ 333 |
Total of incurred but not reported liabilities plus expected development on reported losses | $ 2 | ||||
Cumulative number of reported claims | reported_claim | 51 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 337 | 310 | 273 | 223 | $ 159 |
2015 | Commercial Auto Line | Commercial Insurance | |||||
Claims Development [Line Items] | |||||
Incurred losses and ALAE, net of reinsurance | 401 | 394 | 384 | 374 | |
Total of incurred but not reported liabilities plus expected development on reported losses | $ 10 | ||||
Cumulative number of reported claims | reported_claim | 51 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 349 | 303 | 244 | $ 173 | |
2016 | Commercial Auto Line | Commercial Insurance | |||||
Claims Development [Line Items] | |||||
Incurred losses and ALAE, net of reinsurance | 450 | 430 | 417 | ||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 17 | ||||
Cumulative number of reported claims | reported_claim | 53 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 350 | 273 | $ 184 | ||
2017 | Commercial Auto Line | Commercial Insurance | |||||
Claims Development [Line Items] | |||||
Incurred losses and ALAE, net of reinsurance | 441 | 451 | |||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 65 | ||||
Cumulative number of reported claims | reported_claim | 51 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 266 | $ 187 | |||
2018 | Commercial Auto Line | Commercial Insurance | |||||
Claims Development [Line Items] | |||||
Incurred losses and ALAE, net of reinsurance | 453 | ||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 138 | ||||
Cumulative number of reported claims | reported_claim | 46 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 184 |
Property Casualty Loss And Lo_9
Property Casualty Loss And Loss Expenses (Claims Development - Commercial Property) (Details) reported_claim in Thousands, $ in Millions | Dec. 31, 2018USD ($)reported_claim | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Claims Development [Line Items] | |||||
Incurred losses and ALAE, net of reinsurance | $ 2,588 | ||||
Liabilities for loss and ALAE, net of reinsurance | 5,366 | ||||
Commercial Property Line | Commercial Insurance | |||||
Claims Development [Line Items] | |||||
Incurred losses and ALAE, net of reinsurance | 2,588 | ||||
Cumulative paid losses and ALAE, net of reinsurance | 2,287 | ||||
All outstanding liabilities before, net of reinsurance | 13 | ||||
Liabilities for loss and ALAE, net of reinsurance | 314 | ||||
2014 | Commercial Property Line | Commercial Insurance | |||||
Claims Development [Line Items] | |||||
Incurred losses and ALAE, net of reinsurance | 442 | $ 442 | $ 441 | $ 444 | $ 452 |
Total of incurred but not reported liabilities plus expected development on reported losses | $ 1 | ||||
Cumulative number of reported claims | reported_claim | 17 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 440 | 437 | 432 | 412 | $ 297 |
2015 | Commercial Property Line | Commercial Insurance | |||||
Claims Development [Line Items] | |||||
Incurred losses and ALAE, net of reinsurance | 415 | 416 | 414 | 454 | |
Total of incurred but not reported liabilities plus expected development on reported losses | $ 4 | ||||
Cumulative number of reported claims | reported_claim | 17 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 411 | 407 | 388 | $ 279 | |
2016 | Commercial Property Line | Commercial Insurance | |||||
Claims Development [Line Items] | |||||
Incurred losses and ALAE, net of reinsurance | 541 | 551 | 590 | ||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 4 | ||||
Cumulative number of reported claims | reported_claim | 17 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 528 | 504 | $ 358 | ||
2017 | Commercial Property Line | Commercial Insurance | |||||
Claims Development [Line Items] | |||||
Incurred losses and ALAE, net of reinsurance | 560 | 587 | |||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 12 | ||||
Cumulative number of reported claims | reported_claim | 18 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 522 | $ 395 | |||
2018 | Commercial Property Line | Commercial Insurance | |||||
Claims Development [Line Items] | |||||
Incurred losses and ALAE, net of reinsurance | 630 | ||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 13 | ||||
Cumulative number of reported claims | reported_claim | 16 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 386 |
Property Casualty Loss And L_10
Property Casualty Loss And Loss Expenses (Claims Development - Personal Auto) (Details) reported_claim in Thousands, $ in Millions | Dec. 31, 2018USD ($)reported_claim | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Claims Development [Line Items] | |||||
Incurred losses and ALAE, net of reinsurance | $ 2,588 | ||||
Liabilities for loss and ALAE, net of reinsurance | 5,366 | ||||
Personal Auto | Personal Insurance | |||||
Claims Development [Line Items] | |||||
Incurred losses and ALAE, net of reinsurance | 1,889 | ||||
Cumulative paid losses and ALAE, net of reinsurance | 1,603 | ||||
All outstanding liabilities before, net of reinsurance | 4 | ||||
Liabilities for loss and ALAE, net of reinsurance | 290 | ||||
2014 | Personal Auto | Personal Insurance | |||||
Claims Development [Line Items] | |||||
Incurred losses and ALAE, net of reinsurance | 325 | $ 324 | $ 325 | $ 317 | $ 317 |
Total of incurred but not reported liabilities plus expected development on reported losses | $ 0 | ||||
Cumulative number of reported claims | reported_claim | 105 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 320 | 313 | 298 | 267 | $ 210 |
2015 | Personal Auto | Personal Insurance | |||||
Claims Development [Line Items] | |||||
Incurred losses and ALAE, net of reinsurance | 360 | 356 | 356 | 343 | |
Total of incurred but not reported liabilities plus expected development on reported losses | $ 0 | ||||
Cumulative number of reported claims | reported_claim | 108 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 346 | 325 | 292 | $ 229 | |
2016 | Personal Auto | Personal Insurance | |||||
Claims Development [Line Items] | |||||
Incurred losses and ALAE, net of reinsurance | 386 | 384 | 383 | ||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 3 | ||||
Cumulative number of reported claims | reported_claim | 110 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 351 | 316 | $ 243 | ||
2017 | Personal Auto | Personal Insurance | |||||
Claims Development [Line Items] | |||||
Incurred losses and ALAE, net of reinsurance | 394 | 412 | |||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 14 | ||||
Cumulative number of reported claims | reported_claim | 109 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 324 | $ 256 | |||
2018 | Personal Auto | Personal Insurance | |||||
Claims Development [Line Items] | |||||
Incurred losses and ALAE, net of reinsurance | 424 | ||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 64 | ||||
Cumulative number of reported claims | reported_claim | 104 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 262 |
Property Casualty Loss And L_11
Property Casualty Loss And Loss Expenses (Claims Development - Homeowner) (Details) reported_claim in Thousands, $ in Millions | Dec. 31, 2018USD ($)reported_claim | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Claims Development [Line Items] | |||||
Incurred losses and ALAE, net of reinsurance | $ 2,588 | ||||
Liabilities for loss and ALAE, net of reinsurance | 5,366 | ||||
Home Owner Line | Personal Insurance | |||||
Claims Development [Line Items] | |||||
Incurred losses and ALAE, net of reinsurance | 1,614 | ||||
Cumulative paid losses and ALAE, net of reinsurance | 1,474 | ||||
All outstanding liabilities before, net of reinsurance | 3 | ||||
Liabilities for loss and ALAE, net of reinsurance | 143 | ||||
2014 | Home Owner Line | Personal Insurance | |||||
Claims Development [Line Items] | |||||
Incurred losses and ALAE, net of reinsurance | 284 | $ 285 | $ 286 | $ 283 | $ 297 |
Total of incurred but not reported liabilities plus expected development on reported losses | $ 0 | ||||
Cumulative number of reported claims | reported_claim | 26 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 283 | 283 | 281 | 273 | $ 224 |
2015 | Home Owner Line | Personal Insurance | |||||
Claims Development [Line Items] | |||||
Incurred losses and ALAE, net of reinsurance | 274 | 275 | 275 | 284 | |
Total of incurred but not reported liabilities plus expected development on reported losses | $ 0 | ||||
Cumulative number of reported claims | reported_claim | 24 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 272 | 269 | 260 | $ 203 | |
2016 | Home Owner Line | Personal Insurance | |||||
Claims Development [Line Items] | |||||
Incurred losses and ALAE, net of reinsurance | 303 | 304 | 315 | ||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 1 | ||||
Cumulative number of reported claims | reported_claim | 23 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 295 | 283 | $ 208 | ||
2017 | Home Owner Line | Personal Insurance | |||||
Claims Development [Line Items] | |||||
Incurred losses and ALAE, net of reinsurance | 383 | 356 | |||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 3 | ||||
Cumulative number of reported claims | reported_claim | 26 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 356 | $ 277 | |||
2018 | Home Owner Line | Personal Insurance | |||||
Claims Development [Line Items] | |||||
Incurred losses and ALAE, net of reinsurance | 370 | ||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 15 | ||||
Cumulative number of reported claims | reported_claim | 21 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 268 |
Property Casualty Loss And L_12
Property Casualty Loss And Loss Expenses (Claims Development - Excess and Surplus Lines) (Details) reported_claim in Thousands, $ in Millions | Dec. 31, 2018USD ($)reported_claim | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) |
Claims Development [Line Items] | ||||||||
Incurred losses and ALAE, net of reinsurance | $ 2,588 | |||||||
Liabilities for loss and ALAE, net of reinsurance | 5,366 | |||||||
Excess and Surplus Lines Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred losses and ALAE, net of reinsurance | 532 | |||||||
Cumulative paid losses and ALAE, net of reinsurance | 256 | |||||||
All outstanding liabilities before, net of reinsurance | 1 | |||||||
Liabilities for loss and ALAE, net of reinsurance | 277 | |||||||
2011 | Excess and Surplus Lines Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred losses and ALAE, net of reinsurance | 34 | $ 35 | $ 35 | $ 36 | $ 38 | $ 44 | $ 47 | $ 48 |
Total of incurred but not reported liabilities plus expected development on reported losses | $ 0 | |||||||
Cumulative number of reported claims | reported_claim | 1 | |||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 33 | 34 | 32 | 30 | 27 | 23 | 14 | $ 8 |
2012 | Excess and Surplus Lines Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred losses and ALAE, net of reinsurance | 35 | 36 | 37 | 40 | 49 | 56 | 67 | |
Total of incurred but not reported liabilities plus expected development on reported losses | $ 1 | |||||||
Cumulative number of reported claims | reported_claim | 1 | |||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 32 | 31 | 29 | 25 | 19 | 15 | $ 9 | |
2013 | Excess and Surplus Lines Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred losses and ALAE, net of reinsurance | 41 | 42 | 45 | 54 | 64 | 74 | ||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 3 | |||||||
Cumulative number of reported claims | reported_claim | 2 | |||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 34 | 32 | 27 | 20 | 12 | $ 7 | ||
2014 | Excess and Surplus Lines Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred losses and ALAE, net of reinsurance | 60 | 64 | 75 | 82 | 95 | |||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 10 | |||||||
Cumulative number of reported claims | reported_claim | 2 | |||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 43 | 37 | 27 | 17 | $ 9 | |||
2015 | Excess and Surplus Lines Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred losses and ALAE, net of reinsurance | 67 | 73 | 81 | 96 | ||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 13 | |||||||
Cumulative number of reported claims | reported_claim | 2 | |||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 41 | 29 | 19 | $ 8 | ||||
2016 | Excess and Surplus Lines Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred losses and ALAE, net of reinsurance | 84 | 87 | 93 | |||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 22 | |||||||
Cumulative number of reported claims | reported_claim | 2 | |||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 39 | 21 | $ 10 | |||||
2017 | Excess and Surplus Lines Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred losses and ALAE, net of reinsurance | 95 | 104 | ||||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 43 | |||||||
Cumulative number of reported claims | reported_claim | 2 | |||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 23 | $ 11 | ||||||
2018 | Excess and Surplus Lines Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred losses and ALAE, net of reinsurance | 116 | |||||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 71 | |||||||
Cumulative number of reported claims | reported_claim | 2 | |||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 11 |
Property Casualty Loss And L_13
Property Casualty Loss And Loss Expenses (Average Annual Payout) (Details) | Dec. 31, 2018 |
Commercial Insurance | Commercial Auto Line | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
1 | 42.30% |
2 | 18.30% |
3 | 15.20% |
4 | 10.80% |
5 | 7.50% |
Commercial Insurance | Workers' Compensation Line | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
1 | 26.20% |
2 | 26.60% |
3 | 12.20% |
4 | 6.90% |
5 | 4.10% |
6 | 2.10% |
7 | 1.40% |
8 | 1.20% |
9 | 0.90% |
10 | 0.90% |
Commercial Insurance | Commercial Casualty Line | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
1 | 7.80% |
2 | 14.50% |
3 | 18.20% |
4 | 18.00% |
5 | 13.20% |
6 | 8.40% |
7 | 4.30% |
8 | 3.50% |
9 | 1.40% |
10 | 2.70% |
Commercial Insurance | Commercial Property Line | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
1 | 66.40% |
2 | 25.50% |
3 | 4.60% |
4 | 1.00% |
5 | 0.70% |
Personal Insurance | Home Owner Line | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
1 | 73.20% |
2 | 20.90% |
3 | 3.40% |
4 | 0.80% |
5 | 0.20% |
Personal Insurance | Personal Auto | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
1 | 63.60% |
2 | 17.70% |
3 | 9.30% |
4 | 5.20% |
5 | 2.10% |
Excess and Surplus Lines Insurance | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
1 | 15.80% |
2 | 14.40% |
3 | 18.80% |
4 | 15.60% |
5 | 10.50% |
6 | 6.80% |
7 | 2.00% |
8 | 0.50% |
Life Policy And Investment Co_3
Life Policy And Investment Contract Reservess (Reserve In Addition To The Account Balance Based On Expected No-Lapse Guarantee Benefits And Expected Policy Assessments) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | $ 2,779 | $ 2,729 |
Life Policy Reserves | ||
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | 1,197 | 1,127 |
Life Policy Reserves | Ordinary/Traditional Life | ||
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | 1,149 | 1,080 |
Life Policy Reserves | Other Life Policy Reserves | ||
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | 48 | 47 |
Investment contract reserves | ||
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | 1,582 | 1,602 |
Investment contract reserves | Deferred Annuities | ||
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | 787 | 835 |
Investment contract reserves | Universal Life | ||
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | 632 | 601 |
Investment contract reserves | Structured Settlements | ||
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | 156 | 160 |
Investment contract reserves | Other Investment Contract Reserves | ||
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | $ 7 | $ 6 |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs (Deferred Policy Acquisition Costs And Asset Reconciliation Including The Amortized Deferred Policy Acquisition Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Deferred Costs [Roll Forward] | |||
Deferred policy acquisition costs asset at January 1 | $ 670 | $ 637 | $ 616 |
Capitalized deferred policy acquisition costs | 993 | 948 | 889 |
Amortized deferred policy acquisition costs | (946) | (913) | (863) |
Shadow deferred policy acquisition costs | 21 | (2) | (5) |
Deferred policy acquisition costs asset at December 31 | 738 | 670 | 637 |
Consolidated Property and Casualty Insurance Entity [Member] | |||
Deferred Costs [Roll Forward] | |||
Deferred policy acquisition costs asset at January 1 | 438 | 408 | 388 |
Capitalized deferred policy acquisition costs | 933 | 897 | 840 |
Amortized deferred policy acquisition costs | (907) | (867) | (820) |
Deferred policy acquisition costs asset at December 31 | 464 | 438 | 408 |
Life Insurance Product Line [Member] | |||
Deferred Costs [Roll Forward] | |||
Deferred policy acquisition costs asset at January 1 | 232 | 229 | 228 |
Capitalized deferred policy acquisition costs | 60 | 51 | 49 |
Amortized deferred policy acquisition costs | (39) | (46) | (43) |
Shadow deferred policy acquisition costs | 21 | (2) | (5) |
Deferred policy acquisition costs asset at December 31 | $ 274 | $ 232 | $ 229 |
Note Payable (Narrative) (Detai
Note Payable (Narrative) (Details) | Feb. 04, 2019USD ($)extension | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Debt Disclosure | |||
Number of lines of credit | 1 | 1 | |
Aggregate borrowing capacity | $ 225,000,000 | $ 225,000,000 | |
Accordian feature available amount | $ 50,000,000 | 50,000,000 | |
Line of credit facility, term | 5 years | ||
Expiration date of Line of credit | May 13, 2019 | ||
Note payable | $ 32,000,000 | $ 24,000,000 | |
Minimum | |||
Debt Disclosure | |||
Line of credit, interest rate | 2.45% | 1.65% | |
Maximum | |||
Debt Disclosure | |||
Line of credit, interest rate | 4.75% | 2.45% | |
Subsequent event | |||
Debt Disclosure | |||
Aggregate borrowing capacity | $ 300,000,000 | ||
Line of credit facility, term | 5 years | ||
Accordion feature | $ 300,000,000 | ||
Number of one year extensions | extension | 2 | ||
Ratio of debt-to-total capital maximum | 0.35 |
Long-Term Debt And Capital Le_3
Long-Term Debt And Capital Lease Obligation (Book Value And Principal Amounts Of Long-Term Debt (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument | ||
Book value | $ 788 | $ 787 |
Principal amount | $ 793 | $ 793 |
6.900% Senior Debentures, Due 2028 | ||
Debt Instrument | ||
Interest rate | 6.90% | 6.90% |
Debt issuance year | 1,998 | |
Book value | $ 27 | $ 26 |
Principal amount | $ 28 | $ 28 |
6.920% Senior Debentures, Due 2028 | ||
Debt Instrument | ||
Interest rate | 6.92% | 6.92% |
Debt issuance year | 2,005 | |
Book value | $ 391 | $ 391 |
Principal amount | $ 391 | $ 391 |
6.125% Senior Notes, Due 2034 | ||
Debt Instrument | ||
Interest rate | 6.125% | 6.125% |
Debt issuance year | 2,004 | |
Book value | $ 370 | $ 370 |
Principal amount | $ 374 | $ 374 |
Long-Term Debt And Capital Le_4
Long-Term Debt And Capital Lease Obligation (Capital Lease Payments Over Next Five Years) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Long-term Debt and Capital Lease Obligations [Abstract] | ||
2,019 | $ 16 | |
2,020 | 12 | |
2,021 | 9 | |
2,022 | 6 | |
2,023 | 4 | |
2,024 | 2 | |
Capital lease obligations | 46 | $ 40 |
Interest Costs Incurred | $ 3 |
Shareholders' Equity And Divi_3
Shareholders' Equity And Dividend Restrictions (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2017 | Jan. 01, 2016 | |
Declared cash dividends, per share | $ 2.12 | $ 2.50 | $ 1.92 | ||
Dividends declared by insurance subsidiary to parent | $ 500 | $ 465 | $ 475 | ||
Dividend payment without prior regulatory approval, maximum percent of policyholder surplus | 10.00% | ||||
Dividend payment without prior regulatory approval, percent of statutory net income for the prior calendar year | 100.00% | ||||
Dividends might be paid during next year | $ 626 | ||||
Accumulated Other Comprehensive Income | |||||
Adjustment to reclassify certain tax effects from AOCI to retained earnings | $ 0 | $ 0 | |||
Accumulated Other Comprehensive Income | New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2018-02 | |||||
Adjustment to reclassify certain tax effects from AOCI to retained earnings | 0 | 492 | 0 | ||
Retained Earnings | New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2018-02 | |||||
Adjustment to reclassify certain tax effects from AOCI to retained earnings | $ 0 | $ (492) | $ 0 |
Shareholders' Equity And Divi_4
Shareholders' Equity And Dividend Restrictions (Change In AOCI Includes Changes In Unrealized Gains And Losses On Investments And Pension Obligations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | Jan. 01, 2017 | Jan. 01, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income, Before Tax | |||||||
OCI | $ (334) | $ 928 | $ 537 | ||||
Pension obligations OCI | (4) | 14 | 16 | ||||
Accumulated Other Comprehensive Income, Income Tax | |||||||
OCI | (71) | 325 | 188 | ||||
Accumulated Other Comprehensive Income, Net of Tax | |||||||
AOCI, balance at the beginning of the period | 2,788 | ||||||
Unrealized gains reclassified to retained earnings for ASU 2016-01, after tax | 2,503 | ||||||
AOCI, balance at the end of the period | 22 | 2,788 | |||||
Accumulated Net Unrealized Investment Gain (Loss) | |||||||
Accumulated Other Comprehensive Income, Before Tax | |||||||
AOCI, balance at the beginning of the period | 3,540 | 2,625 | 2,094 | ||||
Cumulative effect of new accounting principle, before tax | (3,155) | 0 | $ 0 | ||||
Adjusted AOCI, beginning of period | 385 | 2,625 | 2,094 | ||||
OCI before investment gains and losses, net, recognized in net income | (334) | 1,054 | 653 | ||||
Investment gains and losses, net, recognized in net income | (5) | (139) | (122) | ||||
OCI | (339) | 915 | 531 | ||||
AOCI, balance at the end of the period | 46 | 3,540 | 2,625 | ||||
Accumulated Other Comprehensive Income, Income Tax | |||||||
AOCI, balance at the beginning of the period | 733 | 908 | 722 | ||||
Cumulative effect of new account principle, tax | (652) | 0 | 0 | ||||
Adjusted AOCI, beginning of period | 81 | 908 | 722 | ||||
OCI before investment gains and losses, net, recognized in net income | (71) | 366 | 229 | ||||
Investment gains and losses, net, recognized in net income | (1) | (49) | (43) | ||||
OCI | (72) | 317 | 186 | ||||
AOCI, balance at the end of the period | 9 | 733 | 908 | ||||
Accumulated Other Comprehensive Income, Net of Tax | |||||||
AOCI, balance at the beginning of the period | 2,807 | 1,717 | 1,372 | ||||
Unrealized gains reclassified to retained earnings for ASU 2016-01, after tax | (2,503) | 0 | 0 | ||||
Adjusted AOCI, beginning of period | 304 | 1,717 | 1,372 | ||||
OCI before investment gains and losses, net, recognized in net income | (263) | 688 | 424 | ||||
Investment gains and losses, net, recognized in net income | (4) | (90) | (79) | ||||
OCI | (267) | 598 | 345 | ||||
AOCI, balance at the end of the period | 37 | 2,807 | 1,717 | ||||
Accumulated Defined Benefit Plans Adjustment | |||||||
Accumulated Other Comprehensive Income, Before Tax | |||||||
AOCI, balance at the beginning of the period | (12) | (26) | (42) | ||||
OCI before investment gains and losses, net, recognized in net income | (5) | 12 | 13 | ||||
Investment gains and losses, net, recognized in net income | 1 | 2 | 3 | ||||
OCI | (4) | 14 | 16 | ||||
AOCI, balance at the end of the period | (16) | (12) | (26) | ||||
Accumulated Other Comprehensive Income, Income Tax | |||||||
AOCI, balance at the beginning of the period | (1) | (8) | (14) | ||||
OCI before investment gains and losses, net, recognized in net income | (1) | 6 | 5 | ||||
Investment gains and losses, net, recognized in net income | 0 | 1 | 1 | ||||
OCI | (1) | 7 | 6 | ||||
AOCI, balance at the end of the period | (2) | (1) | (8) | ||||
Accumulated Other Comprehensive Income, Net of Tax | |||||||
AOCI, balance at the beginning of the period | (11) | (18) | (28) | ||||
OCI before investment gains and losses, net, recognized in net income | (4) | 6 | 8 | ||||
Investment gains and losses, net, recognized in net income | 1 | 1 | 2 | ||||
OCI | (3) | 7 | 10 | ||||
AOCI, balance at the end of the period | (14) | (11) | (18) | ||||
Accumulated Net Unrealized Gain (Loss) on Deferred Costs, Reserves And Other | |||||||
Accumulated Other Comprehensive Income, Before Tax | |||||||
AOCI, balance at the beginning of the period | (10) | (9) | 1 | ||||
OCI before investment gains and losses, net, recognized in net income | (3) | 8 | (8) | ||||
Investment gains and losses, net, recognized in net income | 12 | (9) | (2) | ||||
OCI | 9 | (1) | (10) | ||||
AOCI, balance at the end of the period | (1) | (10) | (9) | ||||
Accumulated Other Comprehensive Income, Income Tax | |||||||
AOCI, balance at the beginning of the period | (2) | (3) | 1 | ||||
OCI before investment gains and losses, net, recognized in net income | (1) | 5 | (3) | ||||
Investment gains and losses, net, recognized in net income | 3 | (4) | (1) | ||||
OCI | 2 | 1 | (4) | ||||
AOCI, balance at the end of the period | 0 | (2) | (3) | ||||
Accumulated Other Comprehensive Income, Net of Tax | |||||||
AOCI, balance at the beginning of the period | (8) | (6) | 0 | ||||
OCI before investment gains and losses, net, recognized in net income | (2) | 3 | (5) | ||||
Investment gains and losses, net, recognized in net income | 9 | (5) | (1) | ||||
OCI | 7 | (2) | (6) | ||||
AOCI, balance at the end of the period | (1) | (8) | (6) | ||||
Accumulated Other Comprehensive Income (Loss) | |||||||
Accumulated Other Comprehensive Income, Before Tax | |||||||
AOCI, balance at the beginning of the period | 3,518 | 2,590 | 2,053 | ||||
Cumulative effect of new accounting principle, before tax | $ (3,155) | $ 0 | $ 0 | ||||
Adjusted AOCI, beginning of period | 363 | 2,590 | 2,053 | ||||
Investments OCI | (339) | 915 | 531 | ||||
Pension obligations OCI | (4) | 14 | 16 | ||||
Life deferred acquisition costs, life policy reserves and other OCI | 9 | (1) | (10) | ||||
Total OCI | (334) | 928 | 537 | ||||
AOCI, balance at the end of the period | 29 | 3,518 | 2,590 | ||||
Accumulated Other Comprehensive Income, Income Tax | |||||||
AOCI, balance at the beginning of the period | 730 | 897 | 709 | ||||
Cumulative effect of new account principle, tax | (652) | 0 | 0 | ||||
Adjusted AOCI, beginning of period | 78 | 897 | 709 | ||||
Investments OCI | (72) | 317 | 186 | ||||
Pension obligations OCI | (1) | 7 | 6 | ||||
Life deferred acquisition costs, life policy reserves and other OCI | 2 | 1 | (4) | ||||
Total OCI | (71) | 325 | 188 | ||||
AOCI, balance at the end of the period | 7 | 730 | 897 | ||||
Accumulated Other Comprehensive Income, Net of Tax | |||||||
AOCI, balance at the beginning of the period | 2,788 | 1,693 | 1,344 | ||||
Unrealized gains reclassified to retained earnings for ASU 2016-01, after tax | (2,503) | 0 | $ (2,503) | 0 | |||
Adjusted AOCI, beginning of period | 285 | 1,693 | $ 1,344 | ||||
Investments OCI | (267) | 598 | 345 | ||||
Pension obligations OCI | (3) | 7 | 10 | ||||
Life deferred acquisition costs, life policy reserves and other OCI | 7 | (2) | (6) | ||||
Total OCI | (263) | 603 | 349 | ||||
Adjustment to reclassify certain tax effects from AOCI | $ 0 | $ 0 | |||||
AOCI, balance at the end of the period | 22 | 2,788 | 1,693 | ||||
New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2018-02 | Accumulated Net Unrealized Investment Gain (Loss) | |||||||
Accumulated Other Comprehensive Income, Before Tax | |||||||
Cumulative effect of new accounting principle, before tax | 0 | 0 | |||||
Accumulated Other Comprehensive Income, Income Tax | |||||||
Cumulative effect of new account principle, tax | 0 | (492) | |||||
Accumulated Other Comprehensive Income, Net of Tax | |||||||
Adjustment to reclassify certain tax effects from AOCI | 0 | 492 | |||||
New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2018-02 | Accumulated Other Comprehensive Income (Loss) | |||||||
Accumulated Other Comprehensive Income, Before Tax | |||||||
Cumulative effect of new accounting principle, before tax | 0 | 0 | |||||
Accumulated Other Comprehensive Income, Income Tax | |||||||
Cumulative effect of new account principle, tax | 0 | (492) | |||||
Accumulated Other Comprehensive Income, Net of Tax | |||||||
Adjustment to reclassify certain tax effects from AOCI | $ 0 | $ 492 | $ 0 |
Reinsurance Reinsurance (Writte
Reinsurance Reinsurance (Written Consolidated Property Casualty Insurance Premiums On Assumed and Ceded Business) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Direct Premiums Earned | $ 5,251 | $ 5,052 | $ 4,857 |
Assumed Premiums Earned | 149 | 132 | 77 |
Ceded Premiums Earned | 230 | 230 | 224 |
Insurance losses and contract holders' benefits | 3,490 | 3,390 | 3,107 |
Consolidated Property and Casualty Insurance Entity | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Direct Premiums Written | 5,018 | 4,854 | 4,646 |
Assumed Premiums Written | 173 | 125 | 103 |
Ceded Premiums Written | (161) | (139) | (169) |
Premiums Written, Net, Property and Casualty | 5,030 | 4,840 | 4,580 |
Direct Premiums Earned | 4,931 | 4,752 | 4,567 |
Assumed Premiums Earned | 149 | 132 | 77 |
Ceded Premiums Earned | (160) | (162) | (162) |
Premiums Earned, Net, Property and Casualty | 4,920 | 4,722 | 4,482 |
Policyholder Benefits and Claims Incurred, Direct | 3,188 | 2,961 | 2,874 |
Policyholder Benefits and Claims Incurred, Assumed | 125 | 113 | 43 |
Policyholder Benefits and Claims Incurred, Ceded | (90) | 64 | (56) |
Insurance losses and contract holders' benefits | $ 3,223 | $ 3,138 | $ 2,861 |
Reinsurance (Earned Life Insura
Reinsurance (Earned Life Insurance Premiums On Ceded Business) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Direct Premiums Earned | $ 5,251 | $ 5,052 | $ 4,857 |
Ceded earned premiums | (230) | (230) | (224) |
Life Insurance Segment | |||
Direct Premiums Earned | 320 | 300 | 290 |
Ceded earned premiums | (70) | (68) | (62) |
Net earned premiums | 250 | 232 | 228 |
Policyholder Benefits and Claims Incurred, Direct | 328 | 319 | 303 |
Policyholder Benefits and Claims Incurred, Assumed | (61) | (67) | (57) |
Policyholder Benefits and Claims Incurred, Ceded | $ 267 | $ 252 | $ 246 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2017 | Jan. 01, 2016 | Dec. 31, 2015 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Income tax benefit for difference in tax rate | $ 50,000,000 | $ 0 | $ 0 | |||
Unrecognized Tax Benefits | 34,000,000 | 0 | 0 | $ 0 | ||
Reduction in net deferred tax liability due to change of corporate income tax rate | 495,000,000 | |||||
Income taxes paid, net | 0 | 18,000,000 | 2,000,000 | |||
Accumulated Other Comprehensive Income | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Adjustment to reclassify certain tax effects from AOCI to retained earnings | $ 0 | $ 0 | ||||
Accumulated Other Comprehensive Income | Accounting Standards Update 2018-02 | New Accounting Pronouncement, Early Adoption, Effect | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Adjustment to reclassify certain tax effects from AOCI to retained earnings | $ 0 | $ 492,000,000 | $ 0 |
Income Taxes (Components Of Def
Income Taxes (Components Of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Loss and loss expense reserves | $ 60 | $ 123 |
Unearned premiums | 105 | 100 |
Other | 33 | 27 |
Total gross deferred tax assets | 198 | 250 |
Deferred tax liabilities: | ||
Investment gains and other, net | 542 | 740 |
Deferred acquisition costs | 131 | 123 |
Life policy reserves | 117 | 111 |
Investments | 18 | 10 |
Other | 17 | 11 |
Total gross deferred tax liabilities | 825 | 995 |
Net deferred income tax liability | $ 627 | $ 745 |
Income Taxes (Differences Betwe
Income Taxes (Differences Between The 35 Percent Statutory Income Tax Rate And Effective Income Tax Rate) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Tax at statutory rate: | $ 53 | $ 256 | $ 284 |
Tax at statutory rate (percentage): | 21.00% | 35.00% | 35.00% |
Increase (decrease) resulting from: | |||
Tax-exempt income from municipal bonds | $ (20) | $ (36) | $ (34) |
Dividend received exclusion | (15) | (34) | (33) |
Effective Income Tax Rate Reconciliation, Tax Accounting Method Changes, Amount | (50) | 0 | 0 |
Deferred tax benefit due to tax rate change | 0 | (495) | 0 |
Other | (4) | (6) | 4 |
Total provision (benefit) for income taxes | $ (36) | $ (315) | $ 221 |
Tax at statutory rate: | |||
Tax-exempt income from municipal bonds (percentage) | (8.00%) | (4.90%) | (4.20%) |
Dividend received exclusion (percentage) | (6.00%) | (4.70%) | (4.10%) |
Effective Income Tax Rate Reconciliation, Tax Accounting Method Changes, Percent | (19.90%) | 0.00% | 0.00% |
Deferred tax benefit due to tax rate change | 0.00% | (67.80%) | 0.00% |
Other (percentage) | (1.40%) | (0.80%) | 0.50% |
Effective tax, percentage | (14.30%) | (43.20%) | 27.20% |
Income Taxes - Reconciliation U
Income Taxes - Reconciliation Unrecognized Tax Benefits (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Gross unrecognized tax benefits at January 1 | $ 0 | $ 0 | $ 0 |
Gross increase in prior year positions | 0 | 0 | 0 |
Gross decrease in prior year positions | 0 | 0 | 0 |
Gross increase in current year positions | 34,000,000 | 0 | 0 |
Settlements with tax authorities | 0 | 0 | 0 |
Lapse of statute of limitations | 0 | 0 | 0 |
Gross unrecognized tax benefits at December 31 | $ 34,000,000 | $ 0 | $ 0 |
Net Income Per Common Share (Ca
Net Income Per Common Share (Calculations For Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Numerator: | |||||||||||
Net income—basic and diluted | $ (452) | $ 553 | $ 217 | $ (31) | $ 642 | $ 102 | $ 100 | $ 201 | $ 287 | $ 1,045 | $ 591 |
Denominator: | |||||||||||
Basic weighted-average common shares outstanding | 163.2 | 164.2 | 164.5 | ||||||||
Diluted weighted-average shares | 164.5 | 166 | 166.5 | ||||||||
Earnings per share: | |||||||||||
Basic (in usd per share) | $ (2.78) | $ 3.40 | $ 1.33 | $ (0.19) | $ 3.92 | $ 0.62 | $ 0.61 | $ 1.22 | $ 1.76 | $ 6.36 | $ 3.59 |
Diluted (in usd per share) | $ (2.78) | $ 3.38 | $ 1.32 | $ (0.19) | $ 3.88 | $ 0.61 | $ 0.60 | $ 1.21 | $ 1.75 | $ 6.29 | $ 3.55 |
Number of anti-dilutive share-based awards | 1.3 | 0.7 | 0.3 | ||||||||
Stock Options | |||||||||||
Denominator: | |||||||||||
Effect of stock-based awards | 0.8 | 1.1 | 1.1 | ||||||||
Restricted Stock Units (RSUs) | |||||||||||
Denominator: | |||||||||||
Effect of stock-based awards | 0.5 | 0.7 | 0.9 |
Employee Retirement Benefits (N
Employee Retirement Benefits (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2008 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block | ||||
Minimum participant age to elect | 40 years | |||
Employer discretionary contribution amount (less than $1 million for 2016 in the CFC Top Hat Savings Plan) | $ 18 | $ 16 | $ 14 | |
Requisite service period | 3 years | |||
Actual return on plan assets | 1.70% | 17.40% | ||
Amortization of actuarial loss | $ 1 | |||
Amortization of prior service cost less than $1 million | 1 | |||
Pension plan assets at fair value | $ 318 | $ 345 | 315 | |
Domestic Equity Securities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block | ||||
Allocation percentage of investments | 75.00% | |||
Domestic Equity Securities | Financial Services Sector | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block | ||||
Allocation percentage of investments | 21.00% | |||
Domestic Equity Securities | Healthcare Sector | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block | ||||
Allocation percentage of investments | 14.00% | |||
Domestic Equity Securities | Consumer Discretionary Sector | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block | ||||
Allocation percentage of investments | 10.00% | |||
Domestic Equity Securities | All Remaining Sectors | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block | ||||
Allocation percentage of investments | 10.00% | |||
States, Municipalities and Political Subdivisions | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block | ||||
Allocation percentage of investments | 10.00% | |||
Domestic Corporate Debt Securities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block | ||||
Allocation percentage of investments | 13.00% | |||
US Government Debt Securities [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block | ||||
Allocation percentage of investments | 2.00% | |||
Cash and Cash Equivalents | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block | ||||
Pension plan assets at fair value | $ 32 | $ 18 | ||
Maximum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block | ||||
Matching contribution to defined contribution plan | 6.00% | |||
Pension Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block | ||||
Percentage of increase decrease in discount rate | 0.57% | |||
Pension plan assets, shares | 232,113 | 232,113 | ||
Pension plan assets, fair value | $ 18 | $ 17 | ||
Cash dividends paid (less than $1 million for 2018) | $ 1 | 1 | ||
Pension Plan | Benefit Obligations | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block | ||||
Percentage of increase decrease in discount rate | 0.61% | |||
Supplemental Employee Retirement Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block | ||||
Accrued employee benefit | $ 10 | 9 | ||
Percentage of increase decrease in discount rate | 0.49% | |||
Expected contribution by employer during 2018 | $ 4 | |||
Supplemental Employee Retirement Plan | Benefit Obligations | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block | ||||
Percentage of increase decrease in discount rate | 0.64% | |||
Top Hat Savings Plan - Mutual Funds and Common Equities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block | ||||
CFC Top Hat Savings Plan | $ 34 | 31 | ||
Top Hat | Top Hat Savings Plan - Mutual Funds and Common Equities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block | ||||
Employer discretionary contribution amount (less than $1 million for 2016 in the CFC Top Hat Savings Plan) | 1 | $ 1 | ||
CFC Top Hat Savings Plan | $ 34 | $ 31 | ||
Information Technology Sector | Domestic Equity Securities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block | ||||
Allocation percentage of investments | 20.00% | |||
Industrial Sector | Domestic Equity Securities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block | ||||
Allocation percentage of investments | 11.00% |
Employee Retirement Benefits (W
Employee Retirement Benefits (Weighted-Average Assumptions Used) (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Benefit Obligations | Pension Plan | |||
Schedule of Benefit Obligations Weighted Average Assumptions | |||
Discount rate | 4.34% | 3.73% | |
Benefit Obligations | Pension Plan | Minimum | |||
Schedule of Benefit Obligations Weighted Average Assumptions | |||
Rate of compensation increase | 2.25% | 2.75% | |
Benefit Obligations | Pension Plan | Maximum | |||
Schedule of Benefit Obligations Weighted Average Assumptions | |||
Rate of compensation increase | 3.25% | 3.25% | |
Benefit Obligations | Supplemental Employee Retirement Plan | |||
Schedule of Benefit Obligations Weighted Average Assumptions | |||
Discount rate | 4.25% | 3.61% | |
Benefit Obligations | Supplemental Employee Retirement Plan | Minimum | |||
Schedule of Benefit Obligations Weighted Average Assumptions | |||
Rate of compensation increase | 2.25% | 2.75% | |
Benefit Obligations | Supplemental Employee Retirement Plan | Maximum | |||
Schedule of Benefit Obligations Weighted Average Assumptions | |||
Rate of compensation increase | 3.25% | 3.25% | |
Net Periodic Benefit Cost | Pension Plan | |||
Schedule of Benefit Obligations Weighted Average Assumptions | |||
Discount rate | 3.73% | 4.30% | 4.55% |
Expected return on plan assets | 7.25% | 7.25% | 7.25% |
Net Periodic Benefit Cost | Pension Plan | Minimum | |||
Schedule of Benefit Obligations Weighted Average Assumptions | |||
Rate of compensation increase | 2.75% | 2.75% | 2.75% |
Net Periodic Benefit Cost | Pension Plan | Maximum | |||
Schedule of Benefit Obligations Weighted Average Assumptions | |||
Rate of compensation increase | 3.25% | 3.25% | 3.25% |
Net Periodic Benefit Cost | Supplemental Employee Retirement Plan | |||
Schedule of Benefit Obligations Weighted Average Assumptions | |||
Discount rate | 3.61% | 4.10% | 4.30% |
Net Periodic Benefit Cost | Supplemental Employee Retirement Plan | Minimum | |||
Schedule of Benefit Obligations Weighted Average Assumptions | |||
Rate of compensation increase | 2.75% | 2.75% | 2.75% |
Net Periodic Benefit Cost | Supplemental Employee Retirement Plan | Maximum | |||
Schedule of Benefit Obligations Weighted Average Assumptions | |||
Rate of compensation increase | 3.25% | 3.25% | 3.25% |
Employee Retirement Benefits (B
Employee Retirement Benefits (Benefit Obligation Activity Using An Actuarial Measurement Date For Qualified Plan And SERP) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Change in projected benefit obligation: | |||
Benefit obligation, January 1 | $ 351 | $ 340 | |
Service cost | 11 | 11 | $ 11 |
Interest cost | 13 | 14 | 14 |
Actuarial (gain) loss | (19) | 20 | |
Benefits paid | (38) | (34) | |
Projected benefit obligation, December 31 | 318 | 351 | 340 |
Change in plan assets: | |||
Fair value of plan assets, January 1 | 345 | 315 | |
Actual return on plan assets | (4) | 52 | |
Employer contribution | 15 | 12 | |
Benefits paid | (38) | (34) | |
Fair value of plan assets, December 31 | 318 | 345 | $ 315 |
Unfunded status: | |||
Funded status, December 31 | 0 | (6) | |
Accumulated benefit obligation | $ 297 | $ 322 |
Employee Retirement Benefits (R
Employee Retirement Benefits (Reconciliation Of The Funded Status For Qualified Plan And SERP) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Retirement Benefits [Abstract] | ||
Other liabilities | $ 0 | $ (6) |
Total | 0 | (6) |
Pension amounts recognized in accumulated other comprehensive income: | ||
Net actuarial loss | 16 | 12 |
Prior service cost | 0 | 0 |
Total | $ 16 | $ 12 |
Employee Retirement Benefits (C
Employee Retirement Benefits (Components Of Net Periodic Benefit Cost As Well As Other Changes In Plan Assets And Benefit Obligations Recognized In Other Comprehensive Income For Qualified Plan And SERP) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | |||
Service cost | $ 11 | $ 11 | $ 11 |
Interest cost | 13 | 14 | 14 |
Expected return on plan assets | (22) | (21) | (19) |
Amortization of actuarial loss and prior service cost | 1 | 2 | 3 |
Other | 2 | 1 | 0 |
Net periodic benefit cost | 5 | 7 | 9 |
Current year actuarial (gain) loss | 7 | (11) | (13) |
Amortization of actuarial loss | (3) | (3) | (2) |
Amortization of prior service cost | 0 | 0 | (1) |
Total recognized in other comprehensive (income) loss | 4 | (14) | (16) |
Total recognized in net periodic benefit cost and other comprehensive (income) loss | $ 9 | $ (7) | $ (7) |
Employee Retirement Benefits (F
Employee Retirement Benefits (Fair Value Hierarchy Of Assets Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Pension and Other Postretirment Plan Assets by Fair Value | ||
Available for sale securities, debt securities | $ 10,689 | $ 10,699 |
Available for sale securities, equity securities | 5,920 | 6,249 |
Fixed Maturities | ||
Schedule of Pension and Other Postretirment Plan Assets by Fair Value | ||
Available for sale securities, debt securities | 71 | 65 |
Fixed Maturities | States, Municipalities and Political Subdivisions | ||
Schedule of Pension and Other Postretirment Plan Assets by Fair Value | ||
Available for sale securities, debt securities | 29 | 31 |
Fixed Maturities | Corporate Fixed Maturities | ||
Schedule of Pension and Other Postretirment Plan Assets by Fair Value | ||
Available for sale securities, debt securities | 37 | 34 |
Fixed Maturities | United States Government | ||
Schedule of Pension and Other Postretirment Plan Assets by Fair Value | ||
Available for sale securities, debt securities | 5 | |
Equity Securities | Common Stock | ||
Schedule of Pension and Other Postretirment Plan Assets by Fair Value | ||
Available for sale securities, equity securities | 215 | 262 |
Debt And Equity Securities | ||
Schedule of Pension and Other Postretirment Plan Assets by Fair Value | ||
Available for sale securities, equity securities | 286 | 327 |
Level 1 | Fixed Maturities | ||
Schedule of Pension and Other Postretirment Plan Assets by Fair Value | ||
Available for sale securities, debt securities | 5 | 0 |
Level 1 | Fixed Maturities | States, Municipalities and Political Subdivisions | ||
Schedule of Pension and Other Postretirment Plan Assets by Fair Value | ||
Available for sale securities, debt securities | 0 | 0 |
Level 1 | Fixed Maturities | Corporate Fixed Maturities | ||
Schedule of Pension and Other Postretirment Plan Assets by Fair Value | ||
Available for sale securities, debt securities | 0 | 0 |
Level 1 | Fixed Maturities | United States Government | ||
Schedule of Pension and Other Postretirment Plan Assets by Fair Value | ||
Available for sale securities, debt securities | 5 | |
Level 1 | Equity Securities | Common Stock | ||
Schedule of Pension and Other Postretirment Plan Assets by Fair Value | ||
Available for sale securities, equity securities | 215 | 262 |
Level 1 | Debt And Equity Securities | ||
Schedule of Pension and Other Postretirment Plan Assets by Fair Value | ||
Available for sale securities, equity securities | 220 | 262 |
Level 2 | Fixed Maturities | ||
Schedule of Pension and Other Postretirment Plan Assets by Fair Value | ||
Available for sale securities, debt securities | 66 | 65 |
Level 2 | Fixed Maturities | States, Municipalities and Political Subdivisions | ||
Schedule of Pension and Other Postretirment Plan Assets by Fair Value | ||
Available for sale securities, debt securities | 29 | 31 |
Level 2 | Fixed Maturities | Corporate Fixed Maturities | ||
Schedule of Pension and Other Postretirment Plan Assets by Fair Value | ||
Available for sale securities, debt securities | 37 | 34 |
Level 2 | Fixed Maturities | United States Government | ||
Schedule of Pension and Other Postretirment Plan Assets by Fair Value | ||
Available for sale securities, debt securities | 0 | |
Level 2 | Equity Securities | Common Stock | ||
Schedule of Pension and Other Postretirment Plan Assets by Fair Value | ||
Available for sale securities, equity securities | 0 | 0 |
Level 2 | Debt And Equity Securities | ||
Schedule of Pension and Other Postretirment Plan Assets by Fair Value | ||
Available for sale securities, debt securities | 66 | 65 |
Level 3 | Fixed Maturities | ||
Schedule of Pension and Other Postretirment Plan Assets by Fair Value | ||
Available for sale securities, debt securities | 0 | 0 |
Level 3 | Fixed Maturities | States, Municipalities and Political Subdivisions | ||
Schedule of Pension and Other Postretirment Plan Assets by Fair Value | ||
Available for sale securities, debt securities | 0 | 0 |
Level 3 | Fixed Maturities | Corporate Fixed Maturities | ||
Schedule of Pension and Other Postretirment Plan Assets by Fair Value | ||
Available for sale securities, debt securities | 0 | 0 |
Level 3 | Fixed Maturities | United States Government | ||
Schedule of Pension and Other Postretirment Plan Assets by Fair Value | ||
Available for sale securities, debt securities | 0 | |
Level 3 | Equity Securities | Common Stock | ||
Schedule of Pension and Other Postretirment Plan Assets by Fair Value | ||
Available for sale securities, equity securities | 0 | 0 |
Level 3 | Debt And Equity Securities | ||
Schedule of Pension and Other Postretirment Plan Assets by Fair Value | ||
Available for sale securities, equity securities | $ 0 | $ 0 |
Employee Retirement Benefits (E
Employee Retirement Benefits (Expected Future Benefit Payments For Qualified Plan And SERP) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Retirement Benefits [Abstract] | |
Expected future benefit payments, 2019 | $ 43 |
Expected future benefit payments, 2020 | 23 |
Expected future benefit payments, 2021 | 22 |
Expected future benefit payments, 2022 | 21 |
Expected future benefit payments, 2023 | 22 |
Expected future benefit payments, 2024 - 2028 | $ 140 |
Statutory Accounting Informat_3
Statutory Accounting Information (Schedule Of Statutory Net Income And Statutory Surplus (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
The Cincinnati Insurance Company | |||
Statutory Accounting Practices | |||
SAP net income (loss) | $ 626 | $ 401 | $ 434 |
Capital and surplus | 4,919 | 5,094 | |
The Cincinnati Casualty Company | |||
Statutory Accounting Practices | |||
SAP net income (loss) | 16 | 21 | 11 |
Capital and surplus | 398 | 392 | |
The Cincinnati Indemnity Company | |||
Statutory Accounting Practices | |||
SAP net income (loss) | 5 | 4 | 4 |
Capital and surplus | 102 | 100 | |
The Cincinnati Specialty Underwriters Insurance Company | |||
Statutory Accounting Practices | |||
SAP net income (loss) | 69 | 58 | 57 |
Capital and surplus | 479 | 436 | |
The Cincinnati Life Insurance Company | |||
Statutory Accounting Practices | |||
SAP net income (loss) | 0 | 12 | $ 2 |
Capital and surplus | $ 191 | $ 195 |
Transactions With Affliated Par
Transactions With Affliated Parties (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction | |||
Payment for commissions | $ 7 | $ 7 | $ 7 |
Earned premiums | 5,170 | 4,954 | 4,710 |
Affiliated Parties | |||
Related Party Transaction | |||
Earned premiums | $ 45 | $ 45 | $ 44 |
Share-Based Associate Compens_3
Share-Based Associate Compensation Plans (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)peers_exceededPeerscompensation_plansshares | Dec. 31, 2017USD ($)peers_exceededPeersshares | Dec. 31, 2016USD ($)peers_exceededPeersshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of peers exceeded | peers_exceeded | 4 | 5 | 5 |
Number of peers in peer group | Peers | 9 | 9 | 9 |
Number of equity compensation plans | compensation_plans | 4 | ||
Share based compensation | $ 23 | $ 17 | $ 15 |
Tax benefit from compensation expense | 5 | 9 | 8 |
Options exercised, intrinsic value | 15 | 19 | 25 |
Options vested, intrinsic value | 6 | 8 | 11 |
Unrecognized compensation costs related to non-vested awards | $ 30 | ||
Expected weighted-average period to recognize the unrecognized compensation costs related to non-vested awards | 1 year 8 months | ||
Maximum number of shares awarded to each full-time employee for their service | shares | 10 | ||
Proceeds from stock options exercised | $ 9 | 13 | 21 |
Shares of common stock granted in period (in shares) | shares | 757,000 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards exercise peirod | 10 years | ||
Awards vesting period | 3 years | ||
Proceeds from stock options exercised | $ 9 | $ 13 | $ 21 |
Shares repurchased | shares | 69,649 | 96,030 | 186,097 |
Shares repurchased, value | $ 5 | $ 7 | $ 13 |
Weighted average remaining contractual term | 8 years 7 months 15 days | ||
Shares authorized to be granted under the shareholder-approved plans | shares | 17,300,000 | ||
Shares available for future issuance under the plans | shares | 9,700,000 | ||
Stock Options | Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock granted in period (in shares) | shares | 14,600 | ||
Performance Shares | Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares, Issued | shares | 80,666 | 87,228 | |
Awards vesting period | 3 years | ||
Risk-free rates, minimum | 0.00% | 0.00% | 0.00% |
Risk-free rates, maximum | 200.00% | 200.00% | 200.00% |
share based performance metric for performance shares | 3 years | ||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested In Period Intrinsic Value Aggregate | $ 6 | $ 7 | $ 6 |
Performance Shares | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 2.81% | 2.83% | 2.58% |
Weighted-average expected term | 2 years 10 months 21 days | 2 years 10 months 21 days | 2 years 5 months 9 days |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.22% | 1.44% | 0.77% |
Service Based Shares | Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards vesting period | 3 years | ||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested In Period Intrinsic Value Aggregate | $ 24 | $ 23 | $ 23 |
Share-Based Associate Compens_4
Share-Based Associate Compensation Plans (Assumptions Used In Grants Issued) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stock Options | |||
Weighted-average fair value of options granted during the period | $ 9.87 | $ 10.79 | $ 13.21 |
Stock Options | Minimum | |||
Weighted-average expected term | 7 years | 8 years | 8 years |
Expected volatility | 15.04% | 16.95% | 24.88% |
Dividend yield | 2.98% | 2.83% | 2.58% |
Risk-free rates | 2.77% | 2.33% | 1.44% |
Stock Options | Maximum | |||
Weighted-average expected term | 8 years | 8 years | 8 years |
Expected volatility | 15.10% | 16.95% | 25.75% |
Dividend yield | 2.98% | 2.83% | 3.12% |
Risk-free rates | 2.83% | 2.33% | 1.60% |
Performance Based Shares | Minimum | |||
Weighted-average expected term | 2 years 10 months 21 days | 2 years 10 months 21 days | 2 years 5 months 9 days |
Expected volatility | 16.01% | 15.75% | 15.42% |
Dividend yield | 2.81% | 2.83% | 2.58% |
Risk-free rates | 2.22% | 1.44% | 0.77% |
Performance Based Shares | Maximum | |||
Weighted-average expected term | 2 years 10 months 21 days | 2 years 10 months 21 days | 2 years 10 months 18 days |
Expected volatility | 26.32% | 28.35% | 33.64% |
Dividend yield | 2.81% | 2.83% | 3.12% |
Risk-free rates | 2.22% | 1.44% | 0.87% |
Share-Based Associate Compens_5
Share-Based Associate Compensation Plans (Stock Option Information) (Details) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($)$ / sharesshares | |
Shares | |
Outstanding at beginning of year (in shares) | shares | 3,066 |
Granted (in shares) | shares | 757 |
Exercised (in shares) | shares | (384) |
Forfeited or expired (in shares) | shares | (165) |
Outstanding at end of year (in shares) | shares | 3,274 |
Options exercisable at end of period (in shares) | shares | 2,004 |
Weighted-average exercise price | |
Outstanding at beginning of year (in dollars per share) | $ / shares | $ 49.14 |
Granted (in dollars per share) | $ / shares | 71.19 |
Exercised (in dollars per share) | $ / shares | 37 |
Forfeited or expired (in dollars per share) | $ / shares | 40.90 |
Outstanding at end of year (in dollars per share) | $ / shares | 56.08 |
Options exercisable at end of period (in dollars per share) | $ / shares | $ 47.09 |
Aggregate intrinsic value | |
Outstanding at end of year | $ | $ 68 |
Options exercisable at end of period | $ | $ 60 |
Weighted-average remaining contractual life | |
Outstanding option shares at December 31, 2018 | 6 years 28 days |
Options exercisable at end of period | 4 years 5 months 20 days |
Share-Based Associate Compens_6
Share-Based Associate Compensation Plans (Restricted Stock Unit Information) (Details) - Restricted Stock Units (RSUs) shares in Thousands | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Service Based Shares | |
Nonvested shares | |
Beginning balance (in shares) | shares | 843 |
Granted (in shares) | shares | 314 |
Vested (in shares) | shares | (323) |
Forfeited or canceled (in shares) | shares | (21) |
Ending balance (in shares) | shares | 813 |
Weighted-average grant-date fair value | |
Beginning balance (in dollars per share) | $ / shares | $ 56.16 |
Granted (in dollars per share) | $ / shares | 65.31 |
Vested (in dollars per share) | $ / shares | 49.23 |
Forfeited or canceled (in dollars per share) | $ / shares | 61.44 |
Ending balance (in dollars per share) | $ / shares | $ 62.31 |
Performance Based Shares | |
Nonvested shares | |
Beginning balance (in shares) | shares | 206 |
Granted (in shares) | shares | 57 |
Vested (in shares) | shares | (81) |
Forfeited or canceled (in shares) | shares | 0 |
Ending balance (in shares) | shares | 182 |
Weighted-average grant-date fair value | |
Beginning balance (in dollars per share) | $ / shares | $ 53.35 |
Granted (in dollars per share) | $ / shares | 63.29 |
Vested (in dollars per share) | $ / shares | 45.73 |
Forfeited or canceled (in dollars per share) | $ / shares | 0 |
Ending balance (in dollars per share) | $ / shares | $ 59.83 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)segmentindustry | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Segment Reporting Information | |||||||||||
Earned premiums | $ 5,170 | $ 4,954 | $ 4,710 | ||||||||
Total revenues | $ 710 | $ 1,915 | $ 1,558 | $ 1,224 | $ 1,411 | $ 1,412 | $ 1,386 | $ 1,523 | 5,407 | 5,732 | 5,449 |
Other Income | 5 | 5 | 5 | ||||||||
Fees and Commissions | 15 | 16 | 15 | ||||||||
Net Investment Income | 619 | 609 | 595 | ||||||||
Investment gains and losses, net | (402) | 148 | 124 | ||||||||
Income (loss) before income taxes | (581) | $ 618 | $ 264 | $ (50) | 197 | $ 129 | $ 128 | $ 276 | 251 | 730 | 812 |
Identifiable assets | 21,935 | 21,843 | $ 21,935 | 21,843 | |||||||
Number of Industries Operated In | industry | 2 | ||||||||||
Number of Insurance Segments | segment | 4 | ||||||||||
Life Insurance Segment | |||||||||||
Segment Reporting Information | |||||||||||
Earned premiums | $ 250 | 232 | 228 | ||||||||
Identifiable assets | 1,424 | 1,409 | 1,424 | 1,409 | |||||||
Investments Segment | |||||||||||
Segment Reporting Information | |||||||||||
Identifiable assets | 16,741 | 17,112 | 16,741 | 17,112 | |||||||
Consolidated Property and Casualty Insurance Entity | |||||||||||
Segment Reporting Information | |||||||||||
Identifiable assets | 3,285 | 2,863 | 3,285 | 2,863 | |||||||
Corporate and Other [Member] | |||||||||||
Segment Reporting Information | |||||||||||
Identifiable assets | $ 485 | $ 459 | 485 | 459 | |||||||
Operating Segments | Commercial Insurance | |||||||||||
Segment Reporting Information | |||||||||||
Earned premiums | 3,218 | 3,165 | 3,089 | ||||||||
Total revenues | 3,223 | 3,170 | 3,094 | ||||||||
Fees and Commissions | 5 | 5 | 5 | ||||||||
Income (loss) before income taxes | 151 | 119 | 184 | ||||||||
Operating Segments | Commercial Insurance | Commercial Casualty Line | |||||||||||
Segment Reporting Information | |||||||||||
Earned premiums | 1,075 | 1,072 | 1,050 | ||||||||
Operating Segments | Commercial Insurance | Commercial Property Line | |||||||||||
Segment Reporting Information | |||||||||||
Earned premiums | 920 | 903 | 867 | ||||||||
Operating Segments | Commercial Insurance | Commercial Auto Line | |||||||||||
Segment Reporting Information | |||||||||||
Earned premiums | 664 | 634 | 594 | ||||||||
Operating Segments | Commercial Insurance | Workers' Compensation Line | |||||||||||
Segment Reporting Information | |||||||||||
Earned premiums | 324 | 335 | 354 | ||||||||
Operating Segments | Commercial Insurance | Other Commercial Lines | |||||||||||
Segment Reporting Information | |||||||||||
Earned premiums | 235 | 221 | 224 | ||||||||
Operating Segments | Personal Insurance | |||||||||||
Segment Reporting Information | |||||||||||
Earned premiums | 1,336 | 1,241 | 1,161 | ||||||||
Total revenues | 1,341 | 1,246 | 1,165 | ||||||||
Fees and Commissions | 5 | 5 | 4 | ||||||||
Income (loss) before income taxes | (20) | (32) | (12) | ||||||||
Operating Segments | Personal Insurance | Personal Auto | |||||||||||
Segment Reporting Information | |||||||||||
Earned premiums | 614 | 582 | 543 | ||||||||
Operating Segments | Personal Insurance | Home Owner Line | |||||||||||
Segment Reporting Information | |||||||||||
Earned premiums | 563 | 518 | 486 | ||||||||
Operating Segments | Personal Insurance | Other Personal Lines | |||||||||||
Segment Reporting Information | |||||||||||
Earned premiums | 159 | 141 | 132 | ||||||||
Operating Segments | Excess and Surplus Lines Insurance | |||||||||||
Segment Reporting Information | |||||||||||
Earned premiums | 234 | 209 | 183 | ||||||||
Total revenues | 235 | 210 | 184 | ||||||||
Fees and Commissions | 1 | 1 | 1 | ||||||||
Income (loss) before income taxes | 63 | 61 | 62 | ||||||||
Operating Segments | Life Insurance Segment | |||||||||||
Segment Reporting Information | |||||||||||
Earned premiums | 250 | 232 | 228 | ||||||||
Total revenues | 254 | 237 | 233 | ||||||||
Fees and Commissions | 4 | 5 | 5 | ||||||||
Income (loss) before income taxes | 8 | (1) | 1 | ||||||||
Operating Segments | Investments Segment | |||||||||||
Segment Reporting Information | |||||||||||
Total revenues | 217 | 757 | 719 | ||||||||
Net Investment Income | 619 | 609 | 595 | ||||||||
Investment gains and losses, net | (402) | 148 | 124 | ||||||||
Income (loss) before income taxes | 121 | 664 | 629 | ||||||||
Corporate, Non-Segment [Member] | |||||||||||
Segment Reporting Information | |||||||||||
Total revenues | 137 | 112 | 54 | ||||||||
Corporate, Non-Segment [Member] | Reinsurance assumed and other non segment [Member] | |||||||||||
Segment Reporting Information | |||||||||||
Earned premiums | 132 | 107 | 49 | ||||||||
Corporate, Non-Segment [Member] | Corporate and Other [Member] | |||||||||||
Segment Reporting Information | |||||||||||
Other Income | 5 | 5 | 5 | ||||||||
Income (loss) before income taxes | $ (72) | $ (81) | $ (52) |
Quarterly Supplementary Data (D
Quarterly Supplementary Data (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 710 | $ 1,915 | $ 1,558 | $ 1,224 | $ 1,411 | $ 1,412 | $ 1,386 | $ 1,523 | $ 5,407 | $ 5,732 | $ 5,449 |
Income (loss) before income taxes | (581) | 618 | 264 | (50) | 197 | 129 | 128 | 276 | 251 | 730 | 812 |
Net Income (Loss) Attributable to Parent | $ (452) | $ 553 | $ 217 | $ (31) | $ 642 | $ 102 | $ 100 | $ 201 | $ 287 | $ 1,045 | $ 591 |
Basic (in usd per share) | $ (2.78) | $ 3.40 | $ 1.33 | $ (0.19) | $ 3.92 | $ 0.62 | $ 0.61 | $ 1.22 | $ 1.76 | $ 6.36 | $ 3.59 |
Diluted (in usd per share) | $ (2.78) | $ 3.38 | $ 1.32 | $ (0.19) | $ 3.88 | $ 0.61 | $ 0.60 | $ 1.21 | $ 1.75 | $ 6.29 | $ 3.55 |
Summary of Investments Other _2
Summary of Investments Other Than Investments In Related Parties (Details)1 $ in Millions | Dec. 31, 2018USD ($) |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | $ 14,134 |
Balance sheet | 16,732 |
Fixed Maturities | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 10,643 |
Fair value | 10,689 |
Balance sheet | 10,689 |
Equity Securities | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 3,368 |
Fair value | 5,920 |
Balance sheet | 5,920 |
Other than Securities Investment | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 123 |
Balance sheet | 123 |
States, Municipalities and Political Subdivisions | Fixed Maturities | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 4,251 |
Fair value | 4,304 |
Balance sheet | 4,304 |
States, Municipalities and Political Subdivisions | Fixed Maturities | Cincinnati Financial Corporation | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 19 |
Fair value | 19 |
Balance sheet | 19 |
States, Municipalities and Political Subdivisions | Fixed Maturities | The Cincinnati Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 3,245 |
Fair value | 3,282 |
Balance sheet | 3,282 |
States, Municipalities and Political Subdivisions | Fixed Maturities | The Cincinnati Casualty Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 181 |
Fair value | 182 |
Balance sheet | 182 |
States, Municipalities and Political Subdivisions | Fixed Maturities | The Cincinnati Indemnity Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 44 |
Fair value | 44 |
Balance sheet | 44 |
States, Municipalities and Political Subdivisions | Fixed Maturities | The Cincinnati Life Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 302 |
Fair value | 310 |
Balance sheet | 310 |
States, Municipalities and Political Subdivisions | Fixed Maturities | The Cincinnati Specialty Underwriters Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 459 |
Fair value | 466 |
Balance sheet | 466 |
States, Municipalities and Political Subdivisions | Fixed Maturities | CSU Producers Resources Inc. | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 1 |
Fair value | 1 |
Balance sheet | 1 |
United States Government | Fixed Maturities | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 67 |
Fair value | 67 |
Balance sheet | 67 |
United States Government | Fixed Maturities | The Cincinnati Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 64 |
Fair value | 64 |
Balance sheet | 64 |
United States Government | Fixed Maturities | The Cincinnati Casualty Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 2 |
Fair value | 2 |
Balance sheet | 2 |
United States Government | Fixed Maturities | The Cincinnati Indemnity Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 1 |
Fair value | 1 |
Balance sheet | 1 |
Government-Sponsored Enterprises | Fixed Maturities | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 316 |
Fair value | 310 |
Balance sheet | 310 |
Government-Sponsored Enterprises | Fixed Maturities | The Cincinnati Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 5 |
Fair value | 6 |
Balance sheet | 6 |
Government-Sponsored Enterprises | Fixed Maturities | The Cincinnati Life Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 311 |
Fair value | 304 |
Balance sheet | 304 |
Foreign Government | Fixed Maturities | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 10 |
Fair value | 10 |
Balance sheet | 10 |
Foreign Government | Fixed Maturities | The Cincinnati Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 10 |
Fair value | 10 |
Balance sheet | 10 |
Common Stock | Equity Securities | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 3,195 |
Fair value | 5,742 |
Balance sheet | 5,742 |
Common Stock | Equity Securities | Cincinnati Financial Corporation | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 1,281 |
Fair value | 2,233 |
Balance sheet | 2,233 |
Common Stock | Equity Securities | The Cincinnati Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 1,731 |
Fair value | 3,216 |
Balance sheet | 3,216 |
Common Stock | Equity Securities | The Cincinnati Casualty Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 58 |
Fair value | 108 |
Balance sheet | 108 |
Common Stock | Equity Securities | The Cincinnati Indemnity Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 17 |
Fair value | 26 |
Balance sheet | 26 |
Common Stock | Equity Securities | The Cincinnati Specialty Underwriters Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 91 |
Fair value | 138 |
Balance sheet | 138 |
Common Stock | Equity Securities | CSU Producers Resources Inc. | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 17 |
Fair value | 21 |
Balance sheet | 21 |
Nonredeemable Preferred Stock | Equity Securities | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 173 |
Fair value | 178 |
Balance sheet | 178 |
Nonredeemable Preferred Stock | Equity Securities | Cincinnati Financial Corporation | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 1 |
Fair value | 1 |
Balance sheet | 1 |
Nonredeemable Preferred Stock | Equity Securities | The Cincinnati Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 167 |
Fair value | 169 |
Balance sheet | 169 |
Nonredeemable Preferred Stock | Equity Securities | The Cincinnati Life Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 5 |
Fair value | 8 |
Balance sheet | 8 |
All Other Corporate Bonds | Fixed Maturities | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 5,999 |
Fair value | 5,998 |
Balance sheet | 5,998 |
All Other Corporate Bonds | Fixed Maturities | Cincinnati Financial Corporation | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 16 |
Fair value | 16 |
Balance sheet | 16 |
All Other Corporate Bonds | Fixed Maturities | The Cincinnati Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 2,861 |
Fair value | 2,860 |
Balance sheet | 2,860 |
All Other Corporate Bonds | Fixed Maturities | The Cincinnati Casualty Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 112 |
Fair value | 112 |
Balance sheet | 112 |
All Other Corporate Bonds | Fixed Maturities | The Cincinnati Indemnity Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 31 |
Fair value | 32 |
Balance sheet | 32 |
All Other Corporate Bonds | Fixed Maturities | The Cincinnati Life Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 2,820 |
Fair value | 2,820 |
Balance sheet | 2,820 |
All Other Corporate Bonds | Fixed Maturities | The Cincinnati Specialty Underwriters Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 158 |
Fair value | 157 |
Balance sheet | 157 |
All Other Corporate Bonds | Fixed Maturities | CSU Producers Resources Inc. | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 1 |
Fair value | 1 |
Balance sheet | 1 |
Policy Loans | Other than Securities Investment | The Cincinnati Life Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 33 |
Fair value | 0 |
Balance sheet | 33 |
Limited Partnership | Other than Securities Investment | The Cincinnati Life Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 10 |
Balance sheet | 9 |
Limited Partnership | Other than Securities Investment | Cincinnati Financial Corporation | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 30 |
Fair value | 0 |
Balance sheet | 31 |
Limited Partnership | Other than Securities Investment | The Cincinnati Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 20 |
Balance sheet | 20 |
Real Estate [Member] | Other than Securities Investment | Cincinnati Financial Corporation | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 6 |
Balance sheet | 6 |
Real Estate [Member] | Other than Securities Investment | The Cincinnati Life Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 24 |
Balance sheet | $ 24 |
Condensed Financial Statement_2
Condensed Financial Statements Of Parent Company Condensed Statements Of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash Flows From Operating Activities | |||||||||||
Net Income | $ (452) | $ 553 | $ 217 | $ (31) | $ 642 | $ 102 | $ 100 | $ 201 | $ 287 | $ 1,045 | $ 591 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 63 | 55 | 48 | ||||||||
Gain (Loss) on Sale of Investments | 408 | (148) | (124) | ||||||||
Changes in: | |||||||||||
Investment income receivable | 2 | 0 | (5) | ||||||||
Current income tax receivable/payable | (91) | 67 | (35) | ||||||||
Other assets | (1) | (43) | 34 | ||||||||
Other liabilities | 0 | 24 | 61 | ||||||||
Net cash provided by operating activities | 1,181 | 1,052 | 1,115 | ||||||||
Cash Flows From Investing Activities | |||||||||||
Sale of fixed maturities | 36 | 23 | 15 | ||||||||
Call or maturity of fixed maturities | 1,127 | 1,172 | 1,511 | ||||||||
Sale of equity securities | 403 | 523 | 465 | ||||||||
Purchase of fixed maturities | (1,510) | (1,723) | (1,994) | ||||||||
Purchase of equity securities | (441) | (513) | (439) | ||||||||
Investment in buildings and equipment | (20) | (16) | (13) | ||||||||
Change in other invested assets, net | (38) | (15) | (14) | ||||||||
Net cash used in investing activities | (451) | (558) | (456) | ||||||||
Cash Flows From Financing Activities | |||||||||||
Changes in note payable | 8 | 4 | (15) | ||||||||
Payment of cash dividends to shareholders | (336) | (400) | (306) | ||||||||
Shares acquired - share repurchase authorization | (125) | (92) | (39) | ||||||||
Proceeds from stock options exercised | 9 | 13 | 21 | ||||||||
Other | (60) | (54) | (32) | ||||||||
Net cash used in financing activities | (603) | (614) | (426) | ||||||||
Net change in cash and cash equivalents | 127 | (120) | 233 | ||||||||
Cash and cash equivalents at beginning of year | 657 | 777 | 657 | 777 | 544 | ||||||
Cash and cash equivalents at end of year | 784 | 657 | 784 | 657 | 777 | ||||||
Cincinnati Financial Corporation | |||||||||||
Cash Flows From Operating Activities | |||||||||||
Net Income | 287 | 1,045 | 591 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 7 | 7 | 6 | ||||||||
Gain (Loss) on Sale of Investments | 114 | (28) | (27) | ||||||||
Dividends from subsidiaries | 500 | 465 | 475 | ||||||||
Changes in: | |||||||||||
Increase in equity of subsidiaries | (367) | (859) | (566) | ||||||||
Investment income receivable | 2 | 0 | (2) | ||||||||
Current federal income taxes | 14 | (5) | (4) | ||||||||
Current income tax receivable/payable | (35) | (150) | 8 | ||||||||
Other assets | (17) | (20) | (4) | ||||||||
Other liabilities | 3 | 15 | (1) | ||||||||
Intercompany receivable for operations | 19 | 13 | 20 | ||||||||
Net cash provided by operating activities | 527 | 483 | 496 | ||||||||
Cash Flows From Investing Activities | |||||||||||
Sale of fixed maturities | 1 | 0 | 0 | ||||||||
Call or maturity of fixed maturities | 19 | 14 | 5 | ||||||||
Sale of equity securities | 131 | 230 | 135 | ||||||||
Purchase of fixed maturities | (17) | (2) | 0 | ||||||||
Purchase of equity securities | (177) | (293) | (175) | ||||||||
Investment in buildings and equipment | (12) | (3) | (2) | ||||||||
Change in other invested assets, net | (11) | 0 | 6 | ||||||||
Net cash used in investing activities | (66) | (54) | (31) | ||||||||
Cash Flows From Financing Activities | |||||||||||
Payment of cash dividends to shareholders | (336) | (400) | (306) | ||||||||
Shares acquired - share repurchase authorization | (125) | (92) | (39) | ||||||||
Proceeds from stock options exercised | 9 | 13 | 21 | ||||||||
Other | 1 | 1 | 1 | ||||||||
Net cash used in financing activities | (451) | (478) | (323) | ||||||||
Net change in cash and cash equivalents | 10 | (49) | 142 | ||||||||
Cash and cash equivalents at beginning of year | $ 199 | $ 248 | 199 | 248 | 106 | ||||||
Cash and cash equivalents at end of year | $ 209 | $ 199 | $ 209 | $ 199 | $ 248 |
Condensed Financial Statement_3
Condensed Financial Statements Of Parent Company Condensed Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Condensed Financial Statements, Captions | ||||
Fixed maturities, amortized cost | $ 10,643 | $ 10,314 | ||
Investments | ||||
Fixed maturities, at fair value (amortized cost: 2018—$35; 2017—$35) | 10,689 | 10,699 | ||
Equity securities, at fair value (cost: 2018—$1,282; 2017—$1,159) | 5,920 | 6,249 | ||
Other invested assets | 123 | 103 | ||
Total investments | 16,732 | 17,051 | ||
Cash and cash equivalents | 784 | 657 | $ 777 | $ 544 |
Investment income receivable | 132 | 134 | ||
Land, building and equipment, net, for company use (accumulated depreciation: 2018—$121; 2017—$115) | 195 | 185 | ||
Other assets | 308 | 216 | ||
Total assets | 21,935 | 21,843 | ||
Liabilities | ||||
Deferred federal income tax | 825 | 995 | ||
Long-term debt | 788 | 787 | ||
Other liabilities | 804 | 792 | ||
Total liabilities | 14,102 | 13,600 | ||
Shareholders' Equity | ||||
Common stock | 397 | 397 | ||
Paid-in capital | 1,281 | 1,265 | ||
Retained earnings | 7,625 | 5,180 | ||
Accumulated other comprehensive income | 22 | 2,788 | ||
Treasury stock at cost | (1,492) | (1,387) | ||
Total shareholders' equity | 7,833 | 8,243 | 7,060 | |
Total liabilities and shareholders' equity | 21,935 | 21,843 | ||
Equity securities, cost | 3,368 | 3,094 | ||
Cincinnati Financial Corporation | ||||
Condensed Financial Statements, Captions | ||||
Fixed maturities, amortized cost | 35 | 35 | ||
Investments | ||||
Fixed maturities, at fair value (amortized cost: 2018—$35; 2017—$35) | 35 | 37 | ||
Equity securities, at fair value (cost: 2018—$1,282; 2017—$1,159) | 2,234 | 2,275 | ||
Other invested assets | 36 | 35 | ||
Total investments | 2,305 | 2,347 | ||
Cash and cash equivalents | 209 | 199 | $ 248 | $ 106 |
Equity in net assets of subsidiaries | 6,152 | 6,542 | ||
Investment income receivable | 6 | 8 | ||
Land, building and equipment, net, for company use (accumulated depreciation: 2018—$121; 2017—$115) | 137 | 130 | ||
Income tax receivable | 1 | 15 | ||
Other assets | 48 | 52 | ||
Due from subsidiaries | 106 | 107 | ||
Total assets | 8,964 | 9,400 | ||
Liabilities | ||||
Dividends declared but unpaid | 86 | 82 | ||
Deferred federal income tax | 198 | 234 | ||
Long-term debt | 788 | 787 | ||
Other liabilities | 59 | 54 | ||
Total liabilities | 1,131 | 1,157 | ||
Shareholders' Equity | ||||
Common stock | 397 | 397 | ||
Paid-in capital | 1,281 | 1,265 | ||
Retained earnings | 7,625 | 5,180 | ||
Accumulated other comprehensive income | 22 | 2,788 | ||
Treasury stock at cost | (1,492) | (1,387) | ||
Total shareholders' equity | 7,833 | 8,243 | ||
Total liabilities and shareholders' equity | 8,964 | 9,400 | ||
Equity securities, cost | $ 1,282 | $ 1,159 |
Condensed Financial Statement_4
Condensed Financial Statements Of Parent Company Condensed Balance Sheets (Parenthetical) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Condensed Financial Statements, Captions | ||
Fixed maturities, amortized cost | $ 10,643 | $ 10,314 |
Equity securities, cost | 3,368 | 3,094 |
Land, building and equipment, accumulated depreciation | 265 | 253 |
Cincinnati Financial Corporation | ||
Condensed Financial Statements, Captions | ||
Fixed maturities, amortized cost | 35 | 35 |
Equity securities, cost | 1,282 | 1,159 |
Land, building and equipment, accumulated depreciation | $ 121 | $ 115 |
Condensed Financial Statement_5
Condensed Financial Statements Of Parent Company Condensed Statements Of Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues | |||||||||||
Investment income, net of expenses | $ 619 | $ 609 | $ 595 | ||||||||
Investment gains and losses, net | (402) | 148 | 124 | ||||||||
Other revenues | 5 | 5 | 5 | ||||||||
Total revenues | $ 710 | $ 1,915 | $ 1,558 | $ 1,224 | $ 1,411 | $ 1,412 | $ 1,386 | $ 1,523 | 5,407 | 5,732 | 5,449 |
Expenses | |||||||||||
Interest expense | 53 | 53 | 53 | ||||||||
Other expenses | 16 | 13 | 12 | ||||||||
Total expenses | 5,156 | 5,002 | 4,637 | ||||||||
Income (Loss) Before Income Taxes and Earnings of Subsidiaries | (581) | 618 | 264 | (50) | 197 | 129 | 128 | 276 | 251 | 730 | 812 |
Benefit for income taxes | (36) | (315) | 221 | ||||||||
Net Income | $ (452) | $ 553 | $ 217 | $ (31) | $ 642 | $ 102 | $ 100 | $ 201 | 287 | 1,045 | 591 |
Cincinnati Financial Corporation | |||||||||||
Revenues | |||||||||||
Investment income, net of expenses | 65 | 62 | 56 | ||||||||
Investment gains and losses, net | (108) | 28 | 27 | ||||||||
Other revenues | 15 | 15 | 15 | ||||||||
Total revenues | (28) | 105 | 98 | ||||||||
Expenses | |||||||||||
Interest expense | 52 | 52 | 52 | ||||||||
Other expenses | 31 | 28 | 27 | ||||||||
Total expenses | 83 | 80 | 79 | ||||||||
Income (Loss) Before Income Taxes and Earnings of Subsidiaries | (111) | 25 | 19 | ||||||||
Benefit for income taxes | (31) | (161) | (6) | ||||||||
Net Income (Loss) Before Earnings of Subsidiaries | (80) | 186 | 25 | ||||||||
Increase in equity of subsidiaries | 367 | 859 | 566 | ||||||||
Net Income | $ 287 | $ 1,045 | $ 591 |
Condensed Financial Statement_6
Condensed Financial Statements Of Parent Company Condensed Statements Of Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Financial Statements, Captions | |||||||||||
Net Income | $ (452) | $ 553 | $ 217 | $ (31) | $ 642 | $ 102 | $ 100 | $ 201 | $ 287 | $ 1,045 | $ 591 |
Unrealized gains and (losses) on investments available for sale | (267) | 598 | 345 | ||||||||
Unrealized gains and (losses) on investments available for sale, investments held by subsidiaries and other | (330) | 914 | 521 | ||||||||
Amortization of pension actuarial gains (losses) and prior service cost | (4) | 14 | 16 | ||||||||
OCI | (334) | 928 | 537 | ||||||||
Income taxes on above of other comprehensive income (loss) | (71) | 325 | 188 | ||||||||
Other comprehensive income (loss), net of tax | (263) | 603 | 349 | ||||||||
Comprehensive Income | 24 | 1,648 | 940 | ||||||||
Cincinnati Financial Corporation | |||||||||||
Condensed Financial Statements, Captions | |||||||||||
Net Income | 287 | 1,045 | 591 | ||||||||
Unrealized gains and (losses) on investments available for sale | (110) | 391 | 221 | ||||||||
Unrealized gains and (losses) on investments held by subsidiaries | (631) | 672 | 434 | ||||||||
Reclassification adjustment for (gains) and losses included in net income | 108 | (28) | (27) | ||||||||
Reclassification adjustment for (gains) included in net income on subsidiaries | 294 | (120) | (97) | ||||||||
Unrealized (losses) and gains on other | 0 | (2) | (6) | ||||||||
Unrealized gains and (losses) on other subsidiaries | $ 9 | $ 1 | $ (4) |
Supplementary Insurance Infor_2
Supplementary Insurance Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Supplementary Insurance Information, by Segment | |||
Deferred policy acquisition costs | $ 738 | $ 670 | $ 637 |
Gross future policy benefits, losses, claims and expense losses | 8,448 | 7,972 | 7,728 |
Gross unearned premium | 2,516 | 2,404 | 2,307 |
Other policy claims and benefits payable | 38 | 30 | 28 |
Earned premiums | 5,170 | 4,954 | 4,710 |
Investment income, net of expenses | 554 | 547 | 539 |
Benefits, claims losses and settlement expense | 3,490 | 3,390 | 3,107 |
Amortization of deferred policy acquisition costs | 946 | 913 | 863 |
Underwriting, acquisition and insurance expenses | 651 | 633 | 602 |
Net written premiums | 5,033 | 4,843 | 4,582 |
Commercial Insurance | |||
Supplementary Insurance Information, by Segment | |||
Deferred policy acquisition costs | 291 | 284 | 271 |
Gross future policy benefits, losses, claims and expense losses | 4,466 | 4,236 | 4,179 |
Gross unearned premium | 1,576 | 1,548 | 1,510 |
Earned premiums | 3,218 | 3,165 | 3,089 |
Benefits, claims losses and settlement expense | 2,049 | 2,042 | 1,928 |
Amortization of deferred policy acquisition costs | 608 | 590 | 570 |
Underwriting, acquisition and insurance expenses | 415 | 419 | 412 |
Net written premiums | 3,245 | 3,202 | 3,122 |
Personal Insurance | |||
Supplementary Insurance Information, by Segment | |||
Deferred policy acquisition costs | 126 | 121 | 110 |
Gross future policy benefits, losses, claims and expense losses | 679 | 587 | 569 |
Gross unearned premium | 725 | 683 | 629 |
Earned premiums | 1,336 | 1,241 | 1,161 |
Benefits, claims losses and settlement expense | 972 | 918 | 840 |
Amortization of deferred policy acquisition costs | 242 | 225 | 209 |
Underwriting, acquisition and insurance expenses | 147 | 135 | 128 |
Net written premiums | 1,378 | 1,294 | 1,198 |
Excess and Surplus Lines Insurance | |||
Supplementary Insurance Information, by Segment | |||
Deferred policy acquisition costs | 21 | 17 | 16 |
Gross future policy benefits, losses, claims and expense losses | 298 | 264 | 241 |
Gross unearned premium | 123 | 105 | 93 |
Earned premiums | 234 | 209 | 183 |
Benefits, claims losses and settlement expense | 104 | 86 | 68 |
Amortization of deferred policy acquisition costs | 39 | 35 | 31 |
Underwriting, acquisition and insurance expenses | 29 | 28 | 23 |
Net written premiums | 249 | 219 | 189 |
Reinsurance assumed and other non segment [Member] | |||
Supplementary Insurance Information, by Segment | |||
Deferred policy acquisition costs | 26 | 16 | 11 |
Gross future policy benefits, losses, claims and expense losses | 203 | 132 | 46 |
Gross unearned premium | 91 | 67 | 74 |
Earned premiums | 132 | 107 | 49 |
Benefits, claims losses and settlement expense | 98 | 92 | 25 |
Amortization of deferred policy acquisition costs | 18 | 17 | 10 |
Underwriting, acquisition and insurance expenses | 24 | 18 | 6 |
Net written premiums | 158 | 125 | 71 |
Property, Liability and Casualty Insurance Product Line [Member] | |||
Supplementary Insurance Information, by Segment | |||
Deferred policy acquisition costs | 464 | 438 | 408 |
Gross future policy benefits, losses, claims and expense losses | 5,646 | 5,219 | 5,035 |
Gross unearned premium | 2,515 | 2,403 | 2,306 |
Earned premiums | 4,920 | 4,722 | 4,482 |
Investment income, net of expenses | 401 | 392 | 384 |
Benefits, claims losses and settlement expense | 3,223 | 3,138 | 2,861 |
Amortization of deferred policy acquisition costs | 907 | 867 | 820 |
Underwriting, acquisition and insurance expenses | 615 | 600 | 569 |
Net written premiums | 5,030 | 4,840 | 4,580 |
Accident Health Insurance Segment [Member] | |||
Supplementary Insurance Information, by Segment | |||
Net written premiums | 3 | 3 | 2 |
Life Insurance Segment | |||
Supplementary Insurance Information, by Segment | |||
Deferred policy acquisition costs | 274 | 232 | 229 |
Gross future policy benefits, losses, claims and expense losses | 2,802 | 2,753 | 2,693 |
Gross unearned premium | 1 | 1 | 1 |
Other policy claims and benefits payable | 38 | 30 | 28 |
Earned premiums | 250 | 232 | 228 |
Investment income, net of expenses | 153 | 155 | 155 |
Benefits, claims losses and settlement expense | 267 | 252 | 246 |
Amortization of deferred policy acquisition costs | 39 | 46 | 43 |
Underwriting, acquisition and insurance expenses | $ 36 | $ 33 | $ 33 |
Reinsurance (Details)
Reinsurance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Gross amounts, life insurance in force | $ 104,726 | $ 99,888 | $ 95,533 |
Gross amounts | 5,251 | 5,052 | 4,857 |
Ceded amounts to other companies, life insurance in force | 38,584 | 38,711 | 38,724 |
Ceded Premiums Earned | 230 | 230 | 224 |
Assumed amounts from other companies, life insurance in force | 0 | 0 | 0 |
Assumed amounts from other companies | 149 | 132 | 77 |
Net amounts, life insurance in force | 66,142 | 61,177 | 56,808 |
Premiums Earned, Net | $ 5,170 | $ 4,954 | $ 4,710 |
Percentage of amounts assumed to net, life insurance in force | 0.00% | 0.00% | 0.00% |
Percentage of amounts assumed to net | 2.90% | 2.70% | 1.60% |
Commercial Insurance | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Gross amounts | $ 3,314 | $ 3,258 | $ 3,180 |
Ceded Premiums Earned | 104 | 99 | 98 |
Assumed amounts from other companies | 8 | 6 | 7 |
Premiums Earned, Net | $ 3,218 | $ 3,165 | $ 3,089 |
Percentage of amounts assumed to net | 0.30% | 0.20% | 0.20% |
Personal Insurance | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Gross amounts | $ 1,372 | $ 1,275 | $ 1,195 |
Ceded Premiums Earned | 37 | 35 | 35 |
Assumed amounts from other companies | 1 | 1 | 1 |
Premiums Earned, Net | $ 1,336 | $ 1,241 | $ 1,161 |
Percentage of amounts assumed to net | 0.10% | 0.10% | 0.10% |
Excess and Surplus Lines Insurance | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Gross amounts | $ 245 | $ 219 | $ 192 |
Ceded Premiums Earned | 11 | 10 | 9 |
Assumed amounts from other companies | 0 | 0 | 0 |
Premiums Earned, Net | $ 234 | $ 209 | $ 183 |
Percentage of amounts assumed to net | 0.00% | 0.00% | 0.00% |
Reinsurance assumed and other non segment [Member] | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Gross amounts | $ 0 | $ 0 | $ 0 |
Ceded Premiums Earned | 8 | 18 | 20 |
Assumed amounts from other companies | 140 | 125 | 69 |
Premiums Earned, Net | $ 132 | $ 107 | $ 49 |
Percentage of amounts assumed to net | 106.10% | 116.10% | 140.80% |
Property, Liability And Casualty Insurance Segment [Member] | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Gross amounts | $ 4,931 | $ 4,752 | $ 4,567 |
Ceded Premiums Earned | 160 | 162 | 162 |
Assumed amounts from other companies | 149 | 132 | 77 |
Premiums Earned, Net | $ 4,920 | $ 4,722 | $ 4,482 |
Percentage of amounts assumed to net | 3.00% | 2.80% | 1.70% |
Life Insurance Segment | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Gross amounts | $ 320 | $ 300 | $ 290 |
Ceded Premiums Earned | 70 | 68 | 62 |
Assumed amounts from other companies | 0 | 0 | 0 |
Premiums Earned, Net | $ 250 | $ 232 | $ 228 |
Percentage of amounts assumed to net | 0.00% | 0.00% | 0.00% |
Valuation And Qualifying Acco_2
Valuation And Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |||
Beginning balance, January 1 | $ 6 | $ 5 | $ 4 |
Additions charged to costs and expenses | 6 | 6 | 5 |
Deductions | (6) | (5) | (4) |
Ending balance, December 31 | $ 6 | $ 6 | $ 5 |
Supplementary Information Con_2
Supplementary Information Concerning Property Casualty Insurance Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Supplemental Information for Property, Casualty Insurance Underwriters [Line Items] | |||
Deferred policy acquisition costs | $ 464 | $ 438 | $ 408 |
Reserves for unpaid claims and claim adjustment expenses | 5,646 | 5,219 | 5,035 |
Unearned premiums | 2,515 | 2,403 | 2,306 |
Earned premiums | 4,920 | 4,722 | 4,482 |
Investment income | 401 | 392 | 384 |
Loss and loss expenses incurred related to current accident year | 3,390 | 3,257 | 3,029 |
Prior year claims and claims adjustments expense, (favorable) and unfavorable | (167) | (119) | (168) |
Amortization of deferred policy acquisition cost | 907 | 867 | 820 |
Paid loss and loss expenses | 2,847 | 2,843 | 2,503 |
Net written premiums | 5,030 | 4,840 | 4,580 |
Commercial Insurance | |||
Supplemental Information for Property, Casualty Insurance Underwriters [Line Items] | |||
Deferred policy acquisition costs | 291 | 284 | 271 |
Reserves for unpaid claims and claim adjustment expenses | 4,466 | 4,236 | 4,179 |
Unearned premiums | 1,576 | 1,548 | 1,510 |
Earned premiums | 3,218 | 3,165 | 3,089 |
Investment income | 0 | 0 | 0 |
Loss and loss expenses incurred related to current accident year | 2,206 | 2,115 | 2,057 |
Prior year claims and claims adjustments expense, (favorable) and unfavorable | (157) | (73) | (129) |
Amortization of deferred policy acquisition cost | 608 | 590 | 570 |
Paid loss and loss expenses | 1,816 | 1,866 | 1,675 |
Net written premiums | 3,245 | 3,202 | 3,122 |
Personal Insurance | |||
Supplemental Information for Property, Casualty Insurance Underwriters [Line Items] | |||
Deferred policy acquisition costs | 126 | 121 | 110 |
Reserves for unpaid claims and claim adjustment expenses | 679 | 587 | 569 |
Unearned premiums | 725 | 683 | 629 |
Earned premiums | 1,336 | 1,241 | 1,161 |
Investment income | 0 | 0 | 0 |
Loss and loss expenses incurred related to current accident year | 960 | 932 | 844 |
Prior year claims and claims adjustments expense, (favorable) and unfavorable | 13 | (14) | (4) |
Amortization of deferred policy acquisition cost | 242 | 225 | 209 |
Paid loss and loss expenses | 913 | 898 | 771 |
Net written premiums | 1,378 | 1,294 | 1,198 |
Excess and Surplus Lines Insurance | |||
Supplemental Information for Property, Casualty Insurance Underwriters [Line Items] | |||
Deferred policy acquisition costs | 21 | 17 | 16 |
Reserves for unpaid claims and claim adjustment expenses | 298 | 264 | 241 |
Unearned premiums | 123 | 105 | 93 |
Earned premiums | 234 | 209 | 183 |
Investment income | 0 | 0 | 0 |
Loss and loss expenses incurred related to current accident year | 128 | 115 | 102 |
Prior year claims and claims adjustments expense, (favorable) and unfavorable | (24) | (29) | (34) |
Amortization of deferred policy acquisition cost | 39 | 35 | 31 |
Paid loss and loss expenses | 74 | 61 | 55 |
Net written premiums | 249 | 219 | 189 |
Reinsurance assumed and other non segment [Member] | |||
Supplemental Information for Property, Casualty Insurance Underwriters [Line Items] | |||
Deferred policy acquisition costs | 26 | 16 | 11 |
Reserves for unpaid claims and claim adjustment expenses | 203 | 132 | 46 |
Unearned premiums | 91 | 67 | 74 |
Earned premiums | 132 | 107 | 49 |
Investment income | 0 | 0 | 0 |
Loss and loss expenses incurred related to current accident year | 96 | 95 | 26 |
Prior year claims and claims adjustments expense, (favorable) and unfavorable | 1 | (3) | (1) |
Amortization of deferred policy acquisition cost | 18 | 17 | 10 |
Paid loss and loss expenses | 44 | 18 | 2 |
Net written premiums | $ 158 | $ 125 | $ 71 |