Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 21, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 0-4604 | |
Entity Registrant Name | CINCINNATI FINANCIAL CORPORATION | |
Entity Incorporation, State or Country Code | OH | |
Entity Tax Identification Number | 31-0746871 | |
Entity Address, Address Line One | 6200 S. Gilmore Road, | |
Entity Address, City or Town | Fairfield, | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 45014-5141 | |
City Area Code | 513 | |
Local Phone Number | 870-2000 | |
Title of 12(b) Security | Common stock | |
Trading Symbol | CINF | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 156,856,162 | |
Entity Central Index Key | 0000020286 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Investments | ||
Fixed maturities, at fair value (amortized cost: 2023—$13,708; 2022—$12,979) | $ 12,870 | $ 12,132 |
Equity securities, at fair value (cost: 2023—$4,382; 2022—$4,294) | 10,502 | 9,841 |
Other invested assets | 507 | 452 |
Total investments | 23,879 | 22,425 |
Cash and cash equivalents | 748 | 1,264 |
Investment income receivable | 163 | 160 |
Finance receivable | 98 | 92 |
Premiums receivable | 2,749 | 2,322 |
Reinsurance recoverable | 694 | 665 |
Prepaid reinsurance premiums | 95 | 51 |
Deferred policy acquisition costs | 1,109 | 1,013 |
Land, building and equipment, net, for company use (accumulated depreciation: 2023—$329; 2022—$322) | 198 | 202 |
Other assets | 708 | 646 |
Separate accounts | 911 | 892 |
Total assets | 31,352 | 29,732 |
Insurance reserves | ||
Loss and loss expense reserves | 8,873 | 8,400 |
Life policy and investment contract reserves | 3,038 | 3,015 |
Unearned premiums | 4,222 | 3,689 |
Other liabilities | 1,253 | 1,229 |
Deferred income tax | 1,158 | 1,054 |
Note payable | 25 | 50 |
Long-term debt and lease obligations | 842 | 841 |
Separate accounts | 911 | 892 |
Total liabilities | 20,322 | 19,170 |
Commitments and contingent liabilities (Note 12) | ||
Shareholders' Equity | ||
Common stock, par value—$2 per share; (authorized: 2023 and 2022—500 million shares; issued: 2023 and 2022—198.3 million shares) | 397 | 397 |
Paid-in capital | 1,410 | 1,392 |
Retained earnings | 12,235 | 11,711 |
Accumulated other comprehensive income | (626) | (614) |
Treasury stock at cost (2023—41.5 million shares and 2022—41.2 million shares) | (2,386) | (2,324) |
Total shareholders' equity | 11,030 | 10,562 |
Total liabilities and shareholders' equity | $ 31,352 | $ 29,732 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Debt Securities, Available-for-sale, Amortized Cost | $ 13,708 | $ 12,979 |
Equity Securities, FV-NI, Cost | 4,382 | 4,294 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 329 | $ 322 |
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 2 | $ 2 |
Common Stock, Shares Authorized (in shares) | 500 | 500 |
Common Stock, Shares, Issued (in shares) | 198.3 | 198.3 |
Treasury Stock, Common, Shares (in shares) | 41.5 | 41.2 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenues | ||||
Earned premiums | $ 1,943 | $ 1,773 | $ 3,861 | $ 3,466 |
Investment income, net of expenses | 220 | 195 | 430 | 380 |
Investment gains and losses, net | 434 | (1,154) | 540 | (1,820) |
Fee revenues | 6 | 3 | 10 | 7 |
Other revenues | 2 | 3 | 5 | 5 |
Total revenues | 2,605 | 820 | 4,846 | 2,038 |
Benefits and Expenses | ||||
Insurance losses and contract holders' benefits | 1,340 | 1,322 | 2,738 | 2,354 |
Underwriting, acquisition and insurance expenses | 579 | 533 | 1,135 | 1,053 |
Interest expense | 13 | 13 | 27 | 26 |
Other operating expenses | 7 | 5 | 12 | 9 |
Total benefits and expenses | 1,939 | 1,873 | 3,912 | 3,442 |
Income (Loss) Before Income Taxes | 666 | (1,053) | 934 | (1,404) |
Provision (Benefit) for Income Taxes | ||||
Current | 51 | 30 | 67 | 71 |
Deferred | 81 | (265) | 108 | (391) |
Total provision (benefit) for income taxes | 132 | (235) | 175 | (320) |
Net Income (Loss) | $ 534 | $ (818) | $ 759 | $ (1,084) |
Per Common Share | ||||
Net income (loss)—basic | $ 3.40 | $ (5.12) | $ 4.83 | $ (6.77) |
Net income (loss)—diluted | $ 3.38 | $ (5.12) | $ 4.80 | $ (6.77) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income (Loss) | $ 534 | $ (818) | $ 759 | $ (1,084) |
Change in unrealized gains and losses on investments, net of tax (benefit) of $(32), $(127), $3 and $(284), respectively | (122) | (483) | 6 | (1,072) |
Amortization of pension actuarial loss and prior service cost, net of tax (benefit) of $(1), $0, $(2) and $0, respectively | 0 | 0 | (5) | 0 |
Change in life policy reserves, reinsurance recoverable and other, net of tax (benefit) of $6, $38, $(3) and $79, respectively | 23 | 143 | (13) | 298 |
Other comprehensive income (loss) | (99) | (340) | (12) | (774) |
Comprehensive Income (Loss) | $ 435 | $ (1,158) | $ 747 | $ (1,858) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, Tax | $ (32) | $ (127) | $ 3 | $ (284) |
Other Comprehensive Income Loss, Pension And Other Postretirement Benefit Plans, Net Actuarial Loss And Prior Service Cost Arising During Period, Tax | (1) | 0 | (2) | 0 |
Change in life policy reserves, reinsurance recoverable and other, tax | $ 6 | $ 38 | $ (3) | $ 79 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common equities | Paid-In Capital | Retained Earnings | Retained Earnings As originally reported | Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income As originally reported | Treasury Stock |
Effect of ASU 2018-12 adoption on opening retained earnings | $ (10) | |||||||
Effect of ASU 2018-12 adoption on opening accumulated other comprehensive income | $ (352) | |||||||
Beginning Balance at Dec. 31, 2021 | $ 397 | $ 1,356 | 12,635 | $ 12,625 | 296 | $ 648 | $ (1,921) | |
Share-based awards | 0 | (12) | 12 | |||||
Share-based compensation | 20 | |||||||
Other | 3 | 1 | ||||||
Net Income (Loss) | $ (1,084) | (1,084) | ||||||
Dividends declared | (220) | |||||||
Other comprehensive loss | (774) | (774) | ||||||
Shares acquired - share repurchase authorization | (196) | |||||||
Shares acquired - share-based compensation plans | (8) | |||||||
Ending Balance at Jun. 30, 2022 | 10,505 | $ 397 | 1,367 | 11,331 | (478) | (2,112) | ||
Beginning Balance (in shares) at Dec. 31, 2021 | 160.3 | |||||||
Share-based awards (in shares) | 0.5 | |||||||
Shares acquired - share repurchase authorization (in shares) | (1.6) | |||||||
Ending Balance (in shares) at Jun. 30, 2022 | 159.2 | |||||||
Dividends declared per common share (in dollars per share) | $ 1.38 | |||||||
Effect of ASU 2018-12 adoption on opening retained earnings | 0 | |||||||
Effect of ASU 2018-12 adoption on opening accumulated other comprehensive income | 0 | |||||||
Beginning Balance at Mar. 31, 2022 | $ 397 | 1,354 | 12,258 | (138) | (1,959) | |||
Share-based awards | 0 | 2 | 3 | |||||
Share-based compensation | 9 | |||||||
Other | 2 | 1 | ||||||
Net Income (Loss) | (818) | (818) | ||||||
Dividends declared | (109) | |||||||
Other comprehensive loss | (340) | (340) | ||||||
Shares acquired - share repurchase authorization | (151) | |||||||
Shares acquired - share-based compensation plans | (6) | |||||||
Ending Balance at Jun. 30, 2022 | 10,505 | $ 397 | 1,367 | 11,331 | (478) | (2,112) | ||
Beginning Balance (in shares) at Mar. 31, 2022 | 160.3 | |||||||
Share-based awards (in shares) | 0.1 | |||||||
Shares acquired - share repurchase authorization (in shares) | (1.2) | |||||||
Ending Balance (in shares) at Jun. 30, 2022 | 159.2 | |||||||
Dividends declared per common share (in dollars per share) | $ 0.69 | |||||||
Effect of ASU 2018-12 adoption on opening retained earnings | 0 | |||||||
Effect of ASU 2018-12 adoption on opening accumulated other comprehensive income | 0 | |||||||
Beginning Balance at Dec. 31, 2022 | 10,562 | $ 397 | 1,392 | 11,711 | $ 11,711 | (614) | $ (614) | (2,324) |
Share-based awards | 0 | (6) | 7 | |||||
Share-based compensation | 22 | |||||||
Other | 2 | 1 | ||||||
Net Income (Loss) | 759 | 759 | ||||||
Dividends declared | (235) | |||||||
Other comprehensive loss | (12) | (12) | ||||||
Shares acquired - share repurchase authorization | (67) | |||||||
Shares acquired - share-based compensation plans | (3) | |||||||
Ending Balance at Jun. 30, 2023 | 11,030 | $ 397 | 1,410 | 12,235 | (626) | (2,386) | ||
Beginning Balance (in shares) at Dec. 31, 2022 | 157.1 | |||||||
Share-based awards (in shares) | 0.3 | |||||||
Shares acquired - share repurchase authorization (in shares) | (0.6) | |||||||
Ending Balance (in shares) at Jun. 30, 2023 | 156.8 | |||||||
Dividends declared per common share (in dollars per share) | $ 1.50 | |||||||
Effect of ASU 2018-12 adoption on opening retained earnings | 0 | |||||||
Effect of ASU 2018-12 adoption on opening accumulated other comprehensive income | 0 | |||||||
Beginning Balance at Mar. 31, 2023 | $ 397 | 1,398 | 11,818 | (527) | (2,345) | |||
Share-based awards | 0 | 0 | 0 | |||||
Share-based compensation | 10 | |||||||
Other | 2 | 1 | ||||||
Net Income (Loss) | 534 | 534 | ||||||
Dividends declared | (117) | |||||||
Other comprehensive loss | (99) | (99) | ||||||
Shares acquired - share repurchase authorization | (42) | |||||||
Shares acquired - share-based compensation plans | 0 | |||||||
Ending Balance at Jun. 30, 2023 | $ 11,030 | $ 397 | $ 1,410 | $ 12,235 | $ (626) | $ (2,386) | ||
Beginning Balance (in shares) at Mar. 31, 2023 | 157.2 | |||||||
Share-based awards (in shares) | 0 | |||||||
Shares acquired - share repurchase authorization (in shares) | (0.4) | |||||||
Ending Balance (in shares) at Jun. 30, 2023 | 156.8 | |||||||
Dividends declared per common share (in dollars per share) | $ 0.75 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash Flows From Operating Activities | ||
Net Income (Loss) | $ 759 | $ (1,084) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization and other | 74 | 78 |
Investment gains and losses, net | (526) | 1,829 |
Interest credited to contract holders | 21 | 23 |
Deferred income tax expense | 108 | (391) |
Changes in: | ||
Premiums and reinsurance receivable | (504) | (427) |
Deferred policy acquisition costs | (96) | (130) |
Other assets | (17) | (29) |
Loss and loss expense reserves | 473 | 364 |
Life policy and investment contract reserves | 56 | 38 |
Unearned premiums | 533 | 596 |
Other liabilities | (27) | (31) |
Current income tax receivable/payable | (29) | (81) |
Net cash provided by operating activities | 825 | 755 |
Cash Flows From Investing Activities | ||
Sale, call or maturity of fixed maturities | 581 | 702 |
Sale of equity securities | 4 | 178 |
Purchase of fixed maturities | (1,313) | (942) |
Purchase of equity securities | (97) | (218) |
Changes in finance receivables | (6) | 11 |
Investment in building and equipment | (8) | (8) |
Change in other invested assets, net | (81) | (47) |
Net cash used in investing activities | (920) | (324) |
Cash Flows From Financing Activities | ||
Payment of cash dividends to shareholders | (223) | (208) |
Shares acquired - share repurchase authorization | (66) | (196) |
Changes in note payable | (25) | (10) |
Proceeds from stock options exercised | 6 | 6 |
Contract holders' funds deposited | 45 | 34 |
Contract holders' funds withdrawn | (113) | (62) |
Other | (45) | (36) |
Net cash used in financing activities | (421) | (472) |
Net change in cash and cash equivalents | (516) | (41) |
Cash and cash equivalents at beginning of year | 1,264 | 1,139 |
Cash and cash equivalents at end of period | 748 | 1,098 |
Supplemental Disclosures of Cash Flow Information: | ||
Interest paid | 27 | 26 |
Income taxes paid | 79 | 142 |
Noncash Activities | ||
Equipment acquired under finance lease obligations | 4 | 6 |
Share-based compensation | 13 | 24 |
Other assets and other liabilities | $ 65 | $ 180 |
Accounting Policies
Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies The condensed consolidated financial statements include the accounts of Cincinnati Financial Corporation and its consolidated subsidiaries, each of which is wholly owned. These statements 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 financial statements in conformity with GAAP requires us to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Our actual results could differ from those estimates. Certain financial information that is normally included in annual financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, has been condensed or omitted. Our June 30, 2023, condensed consolidated financial statements are unaudited. We believe that we have made all adjustments, consisting only of normal recurring accruals, that are necessary for fair presentation. These condensed consolidated financial statements should be read in conjunction with our consolidated financial statements included in our 2022 Annual Report on Form 10-K. The results of operations for interim periods do not necessarily indicate results to be expected for the full year. Adopted Accounting Updates ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts In August 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts . ASU 2018-12 requires changes to the measurement and disclosure of long-duration insurance contracts. In November 2020, the FASB issued an ASU that delayed the effective date of ASU 2018-12 to interim and annual reporting periods beginning after December 15, 2022. Related to the company's term and whole life products included in life policy and investment contract reserves, the new guidance requires that cash flow assumptions be reviewed at least annually to determine any necessary updates. Additionally, the discount rate assumption is required to be updated quarterly based on upper-medium grade fixed-income instrument yields (market value discount rates). The life policy and investment contract reserves balance is adjusted through insurance losses and contract holders' benefits for cash flow assumption updates and through accumulated other comprehensive income (AOCI) for discount rate updates. These ASUs also amend the previous guidance related to life deferred policy acquisition costs by requiring amortization of those costs on a constant level basis for a group of contracts that approximates straight-line and the removal of shadow deferred policy acquisition costs for universal life and deferred annuity products. These ASUs also require entities to provide additional disclosures including disaggregated rollforwards of the life policy and investment contract reserves, separate account liabilities and life deferred policy acquisition costs. We adopted these ASUs on a modified retrospective basis on January 1, 2023, resulting in an after-tax increase to shareholders' equity of $31 million. The following table illustrates the effect of adopting ASU 2018-12 in the condensed consolidated balance sheets: (Dollars in millions) June 30, 2023 December 31, 2022 As originally reported As adjusted Difference Reinsurance recoverable $ 694 $ 640 $ 665 $ 25 Prepaid reinsurance premiums 95 79 51 (28) Deferred policy acquisition costs 1,109 1,014 1,013 (1) Total assets 31,352 29,736 29,732 (4) Life policy and investment contract reserves 3,038 3,059 3,015 (44) Deferred income tax 1,158 1,045 1,054 9 Total liabilities 20,322 19,205 19,170 (35) Retained earnings 12,235 11,702 11,711 9 Accumulated other comprehensive income (626) (636) (614) 22 Total shareholders' equity 11,030 10,531 10,562 31 Total liabilities and shareholders' equity 31,352 29,736 29,732 (4) The following table illustrates the effect of adopting ASU 2018-12 in the condensed consolidated statements of income and condensed consolidated statements of comprehensive income: (Dollars in millions, except per share data) Three months ended June 30, 2023 2022 As originally reported As adjusted Difference Earned premiums $ 1,943 $ 1,773 $ 1,773 $ — Insurance losses and contract holders' benefits 1,340 1,309 1,322 13 Underwriting, acquisition and insurance expenses 579 534 533 (1) Deferred income tax expense 81 (263) (265) (2) Net Income (Loss) 534 (808) (818) (10) Change in life policy reserves, reinsurance recoverable and other, net of tax 23 1 143 142 Other comprehensive income (loss) (99) (482) (340) 142 Comprehensive Income (Loss) 435 (1,290) (1,158) 132 Net income (loss) per share: Basic $ 3.40 $ (5.06) $ (5.12) $ (0.06) Diluted 3.38 (5.06) (5.12) (0.06) (Dollars in millions, except per share data) Six months ended June 30, 2023 2022 As originally reported As adjusted Difference Earned premiums $ 3,861 $ 3,463 $ 3,466 $ 3 Insurance losses and contract holders' benefits 2,738 2,348 2,354 6 Underwriting, acquisition and insurance expenses 1,135 1,053 1,053 — Deferred income tax expense 108 (391) (391) — Net Income (Loss) 759 (1,081) (1,084) (3) Change in life policy reserves, reinsurance recoverable and other, net of tax (13) 1 298 297 Other comprehensive income (loss) (12) (1,071) (774) 297 Comprehensive Income (Loss) 747 (2,152) (1,858) 294 Net income (loss) per share: Basic $ 4.83 $ (6.76) $ (6.77) $ (0.01) Diluted 4.80 (6.76) (6.77) (0.01) |
Investments
Investments | 6 Months Ended |
Jun. 30, 2023 | |
Investments [Abstract] | |
Investment | Investments The following table provides amortized cost, gross unrealized gains, gross unrealized losses and fair value for our fixed-maturity securities: (Dollars in millions) Amortized Gross unrealized Fair value At June 30, 2023 gains losses Fixed-maturity securities: Corporate $ 7,719 $ 39 $ 608 $ 7,150 States, municipalities and political subdivisions 4,951 23 262 4,712 Government-sponsored enterprises 582 — 8 574 Commercial mortgage-backed 227 — 17 210 United States government 209 — 5 204 Foreign government 20 — — 20 Total $ 13,708 $ 62 $ 900 $ 12,870 At December 31, 2022 Fixed-maturity securities: Corporate $ 7,412 $ 37 $ 580 $ 6,869 States, municipalities and political subdivisions 4,901 24 303 4,622 Government-sponsored enterprises 186 — 3 183 Commercial mortgage-backed 250 — 16 234 United States government 196 — 5 191 Foreign government 34 — 1 33 Total $ 12,979 $ 61 $ 908 $ 12,132 Th e net unrealized investment losses in our fixed-maturity portfolio at June 30, 2023, are primarily due to an increase in U.S. Treasury yields and a widening of corporate credit spreads . Our commercial mortgage-backed securities had an average rating of Aa2/AA- at June 30, 2023, and December 31, 2022. The table below provides fair values and gross unrealized losses by investment category and by the duration of the securities' continuous unrealized loss positions: (Dollars in millions) Less than 12 months 12 months or more Total At June 30, 2023 Fair Unrealized Fair Unrealized Fair Unrealized Fixed-maturity securities: Corporate $ 2,133 $ 94 $ 4,347 $ 514 $ 6,480 $ 608 States, municipalities and political subdivisions 1,042 11 1,897 251 2,939 262 Government-sponsored enterprises 502 6 32 2 534 8 Commercial mortgage-backed 1 — 208 17 209 17 United States government 144 2 60 3 204 5 Foreign government 15 — — — 15 — Total $ 3,837 $ 113 $ 6,544 $ 787 $ 10,381 $ 900 At December 31, 2022 Fixed-maturity securities: Corporate $ 5,651 $ 412 $ 661 $ 168 $ 6,312 $ 580 States, municipalities and political subdivisions 2,600 274 77 29 2,677 303 Government-sponsored enterprises 123 3 3 — 126 3 Commercial mortgage-backed 215 13 14 3 229 16 United States government 146 3 41 2 187 5 Foreign government 25 1 4 — 29 1 Total $ 8,760 $ 706 $ 800 $ 202 $ 9,560 $ 908 Contractual maturity dates for fixed-maturities securities were: (Dollars in millions) Amortized Fair % of fair At June 30, 2023 Maturity dates: Due in one year or less $ 772 $ 766 6.0 % Due after one year through five years 4,348 4,179 32.5 Due after five years through ten years 3,508 3,312 25.7 Due after ten years 5,080 4,613 35.8 Total $ 13,708 $ 12,870 100.0 % Actual maturities may differ from contractual maturities when there is a right to call or prepay obligations with or without call or prepayment penalties. The following table provides investment income and investment gains and losses, net: (Dollars in millions) Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Investment income: Interest $ 147 $ 124 $ 287 $ 247 Dividends 70 72 136 137 Other 6 2 13 3 Total 223 198 436 387 Less investment expenses 3 3 6 7 Total $ 220 $ 195 $ 430 $ 380 Investment gains and losses, net: Equity securities: Investment gains and losses on securities sold, net $ — $ 5 $ (4) $ 37 Unrealized gains and losses on securities still held, net 459 (1,175) 568 (1,882) Subtotal 459 (1,170) 564 (1,845) Fixed-maturity securities: Gross realized gains — 2 1 6 Gross realized losses — (2) (1) (3) Write-down of impaired securities with intent to sell (4) — (4) — Subtotal (4) — (4) 3 Other (21) 16 (20) 22 Total $ 434 $ (1,154) $ 540 $ (1,820) The fair value of our equity portfolio was $10.502 billion and $9.841 billion at June 30, 2023, and December 31, 2022, respectively. Apple Inc. (Nasdaq:AAPL), an equity holding, was our largest single investment holding with a fair value of $892 million and $597 million, which was 8.8% and 6.3% of our publicly traded common equities portfolio and 3.8% and 2.7% of the total investment portfolio at June 30, 2023, and December 31, 2022, respectively. The allowance for credit losses was $4 million and $1 million at June 30, 2023, and December 31, 2022, respectively. Changes in the allowance were $3 million for both the three and six months ended June 30, 2023 and less than $1 million for both the three and six months ended June 30, 2022. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements In accordance with accounting guidance for fair value measurements and disclosures, we categorized our financial instruments, based on the priority of the observable and market-based data for the valuation technique used, into a three-level 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, 2022, and ultimately management determines fair value. See our 2022 Annual Report on Form 10-K, Item 8, Note 3, Fair Value Measurements, Page 137, for information on characteristics and valuation techniques used in determining fair value. Fair Value Disclosures for Assets The following tables illustrate the fair value hierarchy for those assets measured at fair value on a recurring basis at June 30, 2023, and December 31, 2022. We do not have any liabilities carried at fair value. (Dollars in millions) Level 1 Level 2 Level 3 Total At June 30, 2023 Fixed maturities, available for sale: Corporate $ — $ 7,150 $ — $ 7,150 States, municipalities and political subdivisions — 4,712 — 4,712 Government-sponsored enterprises — 574 — 574 Commercial mortgage-backed — 210 — 210 United States government 204 — — 204 Foreign government — 20 — 20 Subtotal 204 12,666 — 12,870 Common equities 10,124 — — 10,124 Nonredeemable preferred equities — 378 — 378 Separate accounts taxable fixed maturities — 837 — 837 Top Hat savings plan mutual funds and common 62 — — 62 Total $ 10,390 $ 13,881 $ — $ 24,271 At December 31, 2022 Fixed maturities, available for sale: Corporate $ — $ 6,869 $ — $ 6,869 States, municipalities and political subdivisions — 4,622 — 4,622 Government-sponsored enterprises — 183 — 183 Commercial mortgage-backed — 234 — 234 United States government 191 — — 191 Foreign government — 33 — 33 Subtotal 191 11,941 — 12,132 Common equities 9,454 — — 9,454 Nonredeemable preferred equities — 387 — 387 Separate accounts taxable fixed maturities — 815 — 815 Top Hat savings plan mutual funds and common 57 — — 57 Total $ 9,702 $ 13,143 $ — $ 22,845 We also held Level 1 cash and cash equivalents of $748 million and $1.264 billion at June 30, 2023, and December 31, 2022, respectively. Fair Value Disclosures 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 condensed consolidated financial statements. This table summarizes the book value and principal amounts of our long-term debt: (Dollars in millions) Book value Principal amount Interest Year of June 30, December 31, June 30, December 31, 2023 2022 2023 2022 6.900% 1998 Senior debentures, due 2028 $ 27 $ 27 $ 28 $ 28 6.920% 2005 Senior debentures, due 2028 391 391 391 391 6.125% 2004 Senior notes, due 2034 371 371 374 374 Total $ 789 $ 789 $ 793 $ 793 The following table shows fair values of our note payable and long-term debt: (Dollars in millions) Level 1 Level 2 Level 3 Total At June 30, 2023 Note payable $ — $ 25 $ — $ 25 6.900% senior debentures, due 2028 — 29 — 29 6.920% senior debentures, due 2028 — 419 — 419 6.125% senior notes, due 2034 — 396 — 396 Total $ — $ 869 $ — $ 869 At December 31, 2022 Note payable $ — $ 50 $ — $ 50 6.900% senior debentures, due 2028 — 29 — 29 6.920% senior debentures, due 2028 — 418 — 418 6.125% senior notes, due 2034 — 388 — 388 Total $ — $ 885 $ — $ 885 The following table shows the fair value of our life policy loans included in other invested assets and the fair values of our deferred annuities and structured settlements included in life policy and investment contract reserves: (Dollars in millions) Level 1 Level 2 Level 3 Total At June 30, 2023 Life policy loans $ — $ — $ 37 $ 37 Deferred annuities — — 599 599 Structured settlements — 141 — 141 Total $ — $ 141 $ 599 $ 740 At December 31, 2022 Life policy loans $ — $ — $ 37 $ 37 Deferred annuities — — 621 621 Structured settlements — 143 — 143 Total $ — $ 143 $ 621 $ 764 Outstanding principal and interest for these life policy loans totaled $31 million at both June 30, 2023, and December 31, 2022. Recorded reserves for the deferred annuities were $696 million and $734 million at June 30, 2023, and December 31, 2022, respectively. Recorded reserves for the structured settlements were $126 million and $129 million at June 30, 2023, and December 31, 2022, respectively. |
Property Casualty Loss and Loss
Property Casualty Loss and Loss Expenses | 6 Months Ended |
Jun. 30, 2023 | |
Premiums Written, Net [Abstract] | |
Property Casualty Loss And Loss Expenses | Property Casualty Loss and Loss Expenses This table summarizes activity for our consolidated property casualty loss and loss expense reserves: (Dollars in millions) Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Gross loss and loss expense reserves, beginning of period $ 8,626 $ 7,287 $ 8,336 $ 7,229 Less reinsurance recoverable 424 319 405 327 Net loss and loss expense reserves, beginning of period 8,202 6,968 7,931 6,902 Net incurred loss and loss expenses related to: Current accident year 1,363 1,299 2,739 2,296 Prior accident years (101) (59) (160) (100) Total incurred 1,262 1,240 2,579 2,196 Net paid loss and loss expenses related to: Current accident year 502 368 689 537 Prior accident years 579 524 1,438 1,245 Total paid 1,081 892 2,127 1,782 Net loss and loss expense reserves, end of period 8,383 7,316 8,383 7,316 Plus reinsurance recoverable 424 287 424 287 Gross loss and loss expense reserves, end of period $ 8,807 $ 7,603 $ 8,807 $ 7,603 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. The reserve for loss and loss expenses in the condensed consolidated balance sheets also included $66 million at both June 30, 2023, and 2022, for certain life and health loss and loss expense reserves. We experienced $101 million of favorable development on prior accident years, including $59 million of favorable development in commercial lines, $15 million of favorable development in personal lines and $5 million of favorable development in excess and surplus lines for the three months ended June 30, 2023. Within commercial lines, we recognized favorable reserve development of $34 million for the commercial casualty line and $11 million for the workers' compensation line due to reduced uncertainty of prior accident year loss and loss adjustment expense for these lines. We experienced $160 million of favorable development on prior accident years, including $91 million of favorable development in commercial lines, $46 million of favorable development in personal lines and $14 million of favorable development in excess and surplus lines for the six months ended June 30, 2023. Within commercial lines, we recognized favorable reserve development of $36 million for the commercial casualty line, $26 million for the workers' compensation line and $25 million for the commercial property due to reduced uncertainty of prior accident year loss and loss adjustment expense for these lines. Within personal lines, we recognized favorable reserve development of $35 million for the homeowner line and $12 million for the personal auto line. |
Life Policy and Investment Cont
Life Policy and Investment Contract Reserves | 6 Months Ended |
Jun. 30, 2023 | |
Liability for Future Policy Benefit, before Reinsurance [Abstract] | |
Long-Duration Insurance Contracts Disclosure | Life Policy and Investment Contract Reserves In the first quarter of 2023, we adopted ASU 2018-12 which resulted in changes to the life policy and investment contract reserves and the expansion of required disclosures. The below disclosures represent application of the updated guidance. See Note 1, Accounting Policies, for further discussion. We establish the reserves for traditional life policies including term, whole life and other products based on certain cash flow assumptions including expected expenses, mortality, morbidity, withdrawal rates and timing of claim presentation. These assumptions are established based on our current expectations and are reviewed annually to determine any necessary updates. Assumptions are also updated on an interim basis if evidence suggests that they should be revised. 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. These reserves also include a discount rate assumption that is based on market value discount rates and is updated quarterly. Certain assumptions, including the mortality, lapse and long-term interest rate reversion targets, were updated in the second quarter of 2023 as part of our annual assumption unlocking. Changes in the inputs, judgments and assumptions during the period and the related measurement impact on the liability are reflected in the below tables. We establish reserves for the company's deferred annuity, universal life 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. The following table summarizes our life policy and investment contract reserves and provides a reconciliation of the balances described in the below tables to those in the condensed consolidated balance sheets: (Dollars in millions) June 30, December 31, Life policy reserves: Term $ 1,015 $ 961 Whole life 421 408 Other 95 94 Subtotal 1,531 1,463 Investment contract reserves: Deferred annuities 696 734 Universal life 578 578 Structured settlements 126 129 Other 107 111 Subtotal 1,507 1,552 Total life policy and investment contract reserves $ 3,038 $ 3,015 The table below shows the ASU 2018-12 adoption impacts to the life policy and investment contract reserves as of January 1, 2021 (transition date), pretax: (Dollars in millions) Term Whole life Deferred annuity Universal life Other Total At January 1, 2021 Balance, pre-adoption at December 31, 2020 $ 901 $ 363 $ 761 $ 567 $ 323 $ 2,915 Removal of shadow adjustments — — — — 13 13 Net premiums in excess of gross premiums 14 1 — — — 15 Remeasurement at market value discount rates 372 245 — — — 617 Balance, post-adoption at January 1, 2021 $ 1,287 $ 609 $ 761 $ 567 $ 336 $ 3,560 The table below shows the ASU 2018-12 adoption impacts to the life reinsurance recoverable asset as of January 1, 2021, pretax: (Dollars in millions) Term Whole life Deferred annuity Universal life Other Total At January 1, 2021 Balance, pre-adoption at December 31, 2020 $ 113 $ 26 $ — $ — $ 78 $ 217 Remeasurement at market value discount rates 29 18 — — — 47 Other adjustments 20 1 — 2 — 23 Balance, post-adoption at January 1, 2021 $ 162 $ 45 $ — $ 2 $ 78 $ 287 Other above includes structured settlements, other life policy reserves and other investment contract reserves. The removal of shadow adjustments above represents an increase to the life policy and investment contract reserve balance as it is no longer required under ASU 2018-12 for liabilities amortized in accordance with deferred acquisition costs. Shadow adjustments were historically included to present the carrying amount of the liability as if unrealized holding gains and losses had been realized. The net premiums in excess of gross premiums adjustment represents an increase to the liability as the remeasured net premiums, calculated as the present value of future benefits and related expenses using updated cash flow assumptions as of the transition date less the carrying amount of the liability prior to transition, exceeded the present value of future gross premiums. For purposes of calculating the updated present value of future benefits and related expenses above, the discount rate assumption that was used prior to adoption of ASU 2018-12 was retained. The remeasurement at market value discount rates adjustment represents the increase to the liability as a result of updating the discount rate assumption for our term and whole life products from the rates used prior to adoption of ASU 2018-12 to market value discount rates that existed at the transition date. As the discount rate assumption decreased significantly from the date the contracts were initially made, this adjustment represents the largest impact on the liability as a result of the initial adoption of ASU 2018-12. The life reinsurance recoverable asset is included in the remeasurement as the assumptions used in estimating the life reinsurance recoverable are consistent with those used in estimating the related liabilities. Other adjustments includes a reclassification from prepaid reinsurance premiums to reinsurance recoverable. The shadow removal and remeasurement at market value discount rates adjustments were recorded as an increase to the life policy and investment contract reserves liability and a decrease to opening AOCI as of the transition date. The net premiums in excess of gross premiums adjustment was recorded as an increase to the life policy and investment contract reserves liability and a decrease to the opening balance of retained earnings as of the transition date. The balances and changes in the term and whole life policy reserves included in life policy and investment contract reserves is as follows: (Dollars in millions) Three months ended June 30, 2023 2022 Term Whole life Term Whole life Present value of expected net premiums: Balance, beginning of period $ 1,699 $ 217 $ 1,686 $ 226 Beginning balance at original discount rate 1,715 220 1,542 207 Effect of changes in cash flow assumptions (5) (6) 149 (1) Effect of actual variances from expected experience (9) — (3) — Adjusted beginning of period balance 1,701 214 1,688 206 Issuances 40 10 45 8 Interest accrual 17 2 17 2 Net premiums collected (46) (7) (46) (7) Ending balance at original discount rate 1,712 219 1,704 209 Effect of changes in discount rate assumptions (48) (7) 19 1 Balance, end of period 1,664 212 1,723 210 Present value of expected future policy benefits: Balance, beginning of period 2,691 644 2,745 736 Beginning balance at original discount rate 2,712 614 2,463 586 Effect of changes in cash flow assumptions 5 (10) 166 (3) Effect of actual variances from expected experience (11) — (1) — Adjusted beginning of period balance 2,706 604 2,628 583 Issuances 40 11 45 7 Interest accrual 30 7 28 8 Benefits paid (39) (7) (38) (8) Ending balance at original discount rate 2,737 615 2,663 590 Effect of changes in discount rate assumptions (75) 18 39 56 Balance, end of period 2,662 633 2,702 646 Net liability for future policy benefits: Present value of expected future policy benefits less expected net premiums 998 421 979 436 Impact of flooring at cohort level 17 — 20 2 Net life policy reserves 1,015 421 999 438 Less reinsurance recoverable at original discount rate (100) (25) (104) (25) Less effect of discount rate assumption changes on reinsurance recoverable (8) (5) (13) (7) Net life policy reserves, after reinsurance recoverable $ 907 $ 391 $ 882 $ 406 Weighted-average duration of the net life policy reserves in years 12 16 12 17 (Dollars in millions) Six months ended June 30, 2023 2022 Term Whole life Term Whole life Present value of expected net premiums: Balance, beginning of period $ 1,643 $ 208 $ 1,801 $ 241 Beginning balance at original discount rate 1,708 217 1,503 201 Effect of changes in cash flow assumptions (5) (6) 145 (1) Effect of actual variances from expected experience (12) 1 8 — Adjusted beginning of period balance 1,691 212 1,656 200 Issuances 78 17 104 19 Interest accrual 35 4 32 4 Net premiums collected (92) (14) (88) (14) Ending balance at original discount rate 1,712 219 1,704 209 Effect of changes in discount rate assumptions (48) (7) 19 1 Balance, end of period 1,664 212 1,723 210 Present value of expected future policy benefits: Balance, beginning of period 2,584 614 2,993 826 Beginning balance at original discount rate 2,692 607 2,425 577 Effect of changes in cash flow assumptions 5 (10) 162 (3) Effect of actual variances from expected experience (13) 1 17 — Adjusted beginning of period balance 2,684 598 2,604 574 Issuances 78 17 104 18 Interest accrual 60 15 55 15 Benefits paid (85) (15) (100) (17) Ending balance at original discount rate 2,737 615 2,663 590 Effect of changes in discount rate assumptions (75) 18 39 56 Balance, end of period 2,662 633 2,702 646 Net liability for future policy benefits: Present value of expected future policy benefits less expected net premiums 998 421 979 436 Impact of flooring at cohort level 17 — 20 2 Net life policy reserves 1,015 421 999 438 Less reinsurance recoverable at original discount rate (100) (25) (104) (25) Less effect of discount rate assumption changes on reinsurance recoverable (8) (5) (13) (7) Net life policy reserves, after reinsurance recoverable $ 907 $ 391 $ 882 $ 406 Weighted-average duration of the net life policy reserves in years 12 16 12 17 The total impact of flooring at cohort level in the above tables includes the effect of discount rate assumption change s of $3 million and $10 million at June 30, 2023 and 2022, respectively. The following table shows the amount of undiscounted and discounted expected future benefit payments and expected gross premiums for our term and whole life policies: (Dollars in millions) At June 30, 2023 2022 Undiscounted Discounted Undiscounted Discounted Term Expected future benefit payments $ 4,738 $ 2,662 $ 4,589 $ 2,702 Expected future gross premiums 4,345 2,583 4,378 2,690 Whole life Expected future benefit payments $ 1,610 $ 633 $ 1,517 $ 646 Expected future gross premiums 641 390 583 372 The following table shows the amount of revenue and interest recognized in the condensed consolidated statements of income related to our term and whole life policies: (Dollars in millions) Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Gross premiums Term $ 73 $ 71 $ 146 $ 140 Whole life 13 12 25 24 Total $ 86 $ 83 $ 171 $ 164 Interest accretion Term $ 12 $ 11 $ 24 $ 23 Whole life 5 6 11 11 Total $ 17 $ 17 $ 35 $ 34 Adverse development that resulted in an immediate charge to income due to net premiums exceeding gross premiums was immaterial for the three and six months ended June 30, 2023, and 2022. The following table shows the weighted-average interest rate for our term and whole life products : At June 30, 2023 2022 Term Interest accretion rate 5.29 % 5.16 % Current discount rate 5.11 4.20 Whole life Interest accretion rate 5.93 % 5.98 % Current discount rate 5.22 4.74 The discount rate assumption was developed by calculating forward rates from market yield curves of upper-medium grade fixed-income instruments. The following table shows the balances and changes in policyholders' account balances included in investment contract reserves: (Dollars in millions) Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Deferred annuity Universal life Deferred annuity Universal life Deferred annuity Universal life Deferred annuity Universal life Balance, beginning of period $ 711 $ 458 $ 756 $ 456 $ 734 $ 457 $ 763 $ 454 Premiums received 15 9 5 10 25 20 11 21 Policy charges — (10) — (9) — (20) — (19) Surrenders and withdrawals (32) (4) (8) (2) (68) (7) (20) (5) Benefit payments (3) (2) (4) (2) (6) (4) (10) (3) Interest credited 5 5 6 4 11 10 11 9 Balance, end of period $ 696 $ 456 $ 755 $ 457 $ 696 $ 456 $ 755 $ 457 Weighted average crediting rate 3.41 % 4.29 % 3.06 % 4.25 % 3.41 % 4.29 % 3.06 % 4.25 % Net amount at risk $ — $ 4,030 $ — $ 4,141 $ — $ 4,030 $ — $ 4,141 Cash surrender value 691 423 750 422 691 423 750 422 The net amount at risk above represents the guaranteed benefit amount in excess of the current account balances. The following table shows the balance of account values by range of guaranteed minimum crediting rates, in basis points, and the related range of the difference between rates being credited to policyholders and the respective guaranteed minimums for our deferred annuity and universal life contracts: (Dollars in millions) At guaranteed minimum 1 to 50 basis points above 51-150 basis points above Greater than 150 basis points Total At June 30, 2023 Deferred annuity 1.00-3.00% $ 5 $ 400 $ 17 $ 224 646 3.01-4.00% 50 — — — 50 Total $ 55 $ 400 $ 17 $ 224 $ 696 Universal life 1.00-3.00% $ 61 $ — $ 56 $ 3 $ 120 3.01-4.00% 53 — — — 53 Greater than 4.00% 283 — — — 283 Total $ 397 $ — $ 56 $ 3 $ 456 At June 30, 2022 Deferred annuity 1.00-3.00% $ 475 $ — $ 173 $ 56 $ 704 3.01-4.00% 51 — — — 51 Total $ 526 $ — $ 173 $ 56 $ 755 Universal life 1.00-3.00% $ 60 $ 45 $ 7 $ 2 $ 114 3.01-4.00% 52 — — — 52 Greater than 4.00% 291 — — — 291 Total $ 403 $ 45 $ 7 $ 2 $ 457 The following table shows the balances and changes in the other additional liability related to the no-lapse guarantees contained within our universal life contracts: (Dollars in millions) Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Balance, beginning of period $ 125 $ 127 $ 121 $ 133 Balance, beginning of period before shadow reserve adjustments 127 127 123 131 Effect of changes in cash flow assumptions (5) (2) (5) (2) Effect of actual variances from expected experience — 2 (1) 5 Adjusted beginning of period balance 122 127 117 134 Interest accrual 1 1 2 2 Excess death benefits (2) (4) (2) (12) Attributed assessments 3 3 6 6 Effect of changes in interest rate assumptions — (4) 1 (7) Balance, end of period before shadow reserve adjustments 124 123 124 123 Shadow reserve adjustments (2) (1) (2) (1) Balance, end of period 122 122 122 122 Less reinsurance recoverable, end of period 7 6 7 6 Net other additional liability, after reinsurance recoverable $ 129 $ 128 $ 129 $ 128 Weighted-average duration of the other additional liability in years 32 35 32 35 The following table shows balances and changes in separate account balances during the period: (Dollars in millions) Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Balance, beginning of period $ 899 $ 903 $ 892 $ 959 Interest credited before policy charges 10 10 20 20 Change in unrealized gains and losses impacting separate account liabilities — (53) — (105) Benefit payments (1) — (3) (10) Other 3 — 2 (4) Balance, end of period $ 911 $ 860 $ 911 $ 860 Cash surrender value $ 906 $ 878 $ 906 $ 878 |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 6 Months Ended |
Jun. 30, 2023 | |
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. For property casualty, we evaluate the costs for recoverability. The adoption of ASU 2018-12 on January 1, 2023 resulted in a simplified amortization of life deferred acquisition costs and the removal of shadow deferred acquisition costs. See Note 1, Accounting Policies, for further discussion. The table below shows the deferred policy acquisition costs and asset reconciliation. (Dollars in millions) Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Property casualty: Deferred policy acquisition costs asset, beginning of period $ 714 $ 665 $ 682 $ 602 Capitalized deferred policy acquisition costs 407 375 779 739 Amortized deferred policy acquisition costs (350) (317) (690) (618) Deferred policy acquisition costs asset, end of period $ 771 $ 723 $ 771 $ 723 Life: Deferred policy acquisition costs asset, beginning of period $ 334 $ 319 $ 331 $ 314 Capitalized deferred policy acquisition costs 11 10 22 22 Amortized deferred policy acquisition costs (7) (6) (15) (13) Deferred policy acquisition costs asset, end of period $ 338 $ 323 $ 338 $ 323 Consolidated: Deferred policy acquisition costs asset, beginning of period $ 1,048 $ 984 $ 1,013 $ 916 Capitalized deferred policy acquisition costs 418 385 801 761 Amortized deferred policy acquisition costs (357) (323) (705) (631) Deferred policy acquisition costs asset, end of period $ 1,109 $ 1,046 $ 1,109 $ 1,046 The removal of shadow deferred policy acquisition costs as a result of the adoption of ASU 2018-12 resulted in a $33 million increase, across all products, from $263 million pre-adoption at December 31, 2020, to $296 million post-adoption at January 1, 2021. The table below shows the life deferred policy acquisition costs asset by product: (Dollars in millions) Three months ended June 30, 2023 Term Whole life Deferred annuity Universal life Total Balance, beginning of period $ 231 $ 44 $ 7 $ 52 $ 334 Capitalized deferred policy acquisition costs 7 2 1 1 11 Amortized deferred policy acquisition costs (5) (1) — (1) (7) Balance, end of period $ 233 $ 45 $ 8 $ 52 $ 338 Three months ended June 30, 2022 Balance, beginning of period $ 220 $ 39 $ 7 $ 53 $ 319 Capitalized deferred policy acquisition costs 8 1 — 1 $ 10 Amortized deferred policy acquisition costs (6) — — — $ (6) Balance, end of period $ 222 $ 40 $ 7 $ 54 $ 323 (Dollars in millions) Six months ended June 30, 2023 Term Whole life Deferred annuity Universal life Total Balance, beginning of period $ 228 $ 43 $ 7 $ 53 $ 331 Capitalized deferred policy acquisition costs 16 4 1 1 22 Amortized deferred policy acquisition costs (11) (2) — (2) (15) Balance, end of period $ 233 $ 45 $ 8 $ 52 $ 338 Six months ended June 30, 2022 Balance, beginning of period $ 215 $ 38 $ 7 $ 54 $ 314 Capitalized deferred policy acquisition costs 18 3 — 1 $ 22 Amortized deferred policy acquisition costs (11) (1) — (1) $ (13) Balance, end of period $ 222 $ 40 $ 7 $ 54 $ 323 No premium deficiencies were recorded in the condensed consolidated statements of income, 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. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2023 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The adoption of ASU 2018-12 on January 1, 2023 resulted in restatement of certain amounts below. See Note 1, Accounting Policies, for further discussion. Accumulated other comprehensive income (AOCI) includes changes in unrealized gains and losses on investments, changes in pension obligations and changes in life policy reserves, reinsurance recoverable and other as follows: (Dollars in millions) Three months ended June 30, 2023 2022 Before tax Income tax Net Before tax Income tax Net Investments: AOCI, beginning of period $ (684) $ (147) $ (537) $ 46 $ 8 $ 38 OCI before investment gains and losses, net, recognized in net income (158) (34) (124) (610) (127) (483) Investment gains and losses, net, recognized in net income 4 2 2 — — — OCI (154) (32) (122) (610) (127) (483) AOCI, end of period $ (838) $ (179) $ (659) $ (564) $ (119) $ (445) Pension obligations: AOCI, beginning of period $ 30 $ 8 $ 22 $ 27 $ 7 $ 20 OCI excluding amortization recognized in net income — — — — — — Amortization recognized in net income (1) (1) — — — — OCI (1) (1) — — — — AOCI, end of period $ 29 $ 7 $ 22 $ 27 $ 7 $ 20 Life policy reserves, reinsurance recoverable and other: AOCI, beginning of period $ (16) $ (4) $ (12) $ (248) $ (52) $ (196) OCI before investment gains and losses, net, recognized in net income 29 6 23 181 38 143 Investment gains and losses, net, recognized in net income — — — — — — OCI 29 6 23 181 38 143 AOCI, end of period $ 13 $ 2 $ 11 $ (67) $ (14) $ (53) Summary of AOCI: AOCI, beginning of period $ (670) $ (143) $ (527) $ (175) $ (37) $ (138) Investments OCI (154) (32) (122) (610) (127) (483) Pension obligations OCI (1) (1) — — — — Life policy reserves, reinsurance recoverable and other OCI 29 6 23 181 38 143 Total OCI (126) (27) (99) (429) (89) (340) AOCI, end of period $ (796) $ (170) $ (626) $ (604) $ (126) $ (478) (Dollars in millions) Six months ended June 30, 2023 2022 Before tax Income tax Net Before tax Income tax Net Investments: AOCI, beginning of period $ (847) $ (182) $ (665) $ 792 $ 165 $ 627 OCI before investment gains and losses, net, recognized in net income 5 1 4 (1,353) (284) (1,069) Investment gains and losses, net, recognized in net income 4 2 2 (3) — (3) OCI 9 3 6 (1,356) (284) (1,072) AOCI, end of period $ (838) $ (179) $ (659) $ (564) $ (119) $ (445) Pension obligations: AOCI, beginning of period $ 36 $ 9 $ 27 $ 27 $ 7 $ 20 OCI excluding amortization recognized in net income (5) (1) (4) — — — Amortization recognized in net income (2) (1) (1) — — — OCI (7) (2) (5) — — — AOCI, end of period $ 29 $ 7 $ 22 $ 27 $ 7 $ 20 Life policy reserves, reinsurance recoverable and other: AOCI, beginning of period $ 29 $ 5 $ 24 $ 1 $ — $ 1 Cumulative effect of change in accounting for long duration insurance contracts — — — (445) (93) (352) Adjusted AOCI, beginning of period 29 5 24 (444) (93) (351) OCI before investment gains and losses, net, recognized in net income (16) (3) (13) 377 79 298 Investment gains and losses, net, recognized in net income — — — — — — OCI (16) (3) (13) 377 79 298 AOCI, end of period $ 13 $ 2 $ 11 $ (67) $ (14) $ (53) Summary of AOCI: AOCI, beginning of period $ (782) $ (168) $ (614) $ 820 $ 172 $ 648 Cumulative effect of change in accounting for long duration insurance contracts — — — (445) (93) (352) Adjusted AOCI, beginning of period (782) (168) (614) 375 79 296 Investments OCI 9 3 6 (1,356) (284) (1,072) Pension obligations OCI (7) (2) (5) — — — Life policy reserves, reinsurance recoverable and other OCI (16) (3) (13) 377 79 298 Total OCI (14) (2) (12) (979) (205) (774) AOCI, end of period $ (796) $ (170) $ (626) $ (604) $ (126) $ (478) Investment gains and losses, net, and other investment gains and losses, net, |
Reinsurance
Reinsurance | 6 Months Ended |
Jun. 30, 2023 | |
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 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) Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Direct written premiums $ 2,071 $ 1,871 $ 3,930 $ 3,574 Assumed written premiums 194 193 438 456 Ceded written premiums (115) (100) (199) (167) Net written premiums $ 2,150 $ 1,964 $ 4,169 $ 3,863 Direct earned premiums $ 1,806 $ 1,631 $ 3,566 $ 3,192 Assumed earned premiums 134 134 293 255 Ceded earned premiums (77) (68) (155) (132) Earned premiums $ 1,863 $ 1,697 $ 3,704 $ 3,315 Direct incurred loss and loss expenses $ 1,265 $ 1,174 $ 2,564 $ 2,069 Assumed incurred loss and loss expenses 58 67 134 140 Ceded incurred loss and loss expenses (61) (1) (119) (13) Incurred loss and loss expenses $ 1,262 $ 1,240 $ 2,579 $ 2,196 Our life insurance company purchases reinsurance for protection of a portion of the 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) Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Direct earned premiums $ 100 $ 96 $ 196 $ 189 Ceded earned premiums (20) (20) (39) (38) Earned premiums $ 80 $ 76 $ 157 $ 151 Direct contract holders' benefits incurred 100 109 197 212 Ceded contract holders' benefits incurred (22) (27) (38) (54) Contract holders' benefits incurred $ 78 $ 82 $ 159 $ 158 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 | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The differences between the 21% statutory federal income tax rate and our effective income tax rate were as follows: (Dollars in millions) Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Tax at statutory rate: $ 140 21.0 % $ (220) 21.0 % $ 196 21.0 % $ (294) 21.0 % Increase (decrease) resulting from: Tax-exempt income from municipal bonds (5) (0.8) (5) 0.5 (10) (1.1) (10) 0.7 Dividend received exclusion (6) (0.9) (5) 0.5 (11) (1.2) (10) 0.7 Other 3 0.5 (5) 0.3 — — (6) 0.4 Provision (benefit) for income taxes $ 132 19.8 % $ (235) 22.3 % $ 175 18.7 % $ (320) 22.8 % The provision (benefit) for federal income taxes is based upon filing a consolidated income tax return for the company and its domestic subsidiaries. We continue to believe that after considering all positive and negative evidence of taxable income in the carryback and carryforward periods as permitted by law, it is more likely than not that all of the deferred tax assets on our U.S. domestic operations will be realized. As a result, we have no valuation allowance for our U.S. domestic operations at June 30, 2023, and December 31, 2022. As more fully discussed below, we do carry a valuation allowance on the deferred tax assets related to Cincinnati Global Underwriting Ltd. SM (Cincinnati Global). Cincinnati Global As a result of operations for the three and six months ended June 30, 2023, Cincinnati Global decreased its net deferred tax assets by $5 million and $10 million with an offsettin g decrease of $5 million and $10 million to the valuation allowance. Cincinnati Global had a net deferred tax asset of $21 million and an offsetting valuation allowance of $21 million at June 30, 2023. 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, we continue to believe it is appropriate to carry a valuation allowance at June 30, 2023. |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share | Net Income (Loss) 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) Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Numerator: Net income (loss)—basic and diluted $ 534 $ (818) $ 759 $ (1,084) Denominator: Basic weighted-average common shares outstanding 157.0 159.6 157.1 160.0 Effect of share-based awards: Stock options 0.6 — 0.8 — Nonvested shares 0.4 — 0.4 — Diluted weighted-average shares 158.0 159.6 158.3 160.0 Earnings (loss) per share: Basic $ 3.40 $ (5.12) $ 4.83 $ (6.77) Diluted $ 3.38 $ (5.12) $ 4.80 $ (6.77) Number of anti-dilutive share-based awards 1.5 2.0 1.5 2.2 The above table shows the number of anti-dilutive share-based awards for the three and six months ended June 30, 2023 and 2022. In accordance with Accounting Standards Codification 260, Earnings per Share |
Employee Retirement Benefits
Employee Retirement Benefits | 6 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Employee Retirement Benefits | Employee Retirement Benefits The following summarizes the components of net periodic benefit for our qualified and supplemental pension plans: (Dollars in millions) Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Service cost $ 2 $ 3 $ 3 $ 5 Non-service (benefit) costs: Interest cost 3 2 6 5 Expected return on plan assets (5) (5) (10) (11) Amortization of actuarial loss and prior service cost (1) — (2) — Other — — (5) — Total non-service benefit (3) (3) (11) (6) Net periodic benefit $ (1) $ — $ (8) $ (1) See our 2022 Annual Report on Form 10-K, Item 8, Note 13, Employee Retirement Benefits, Page 163, for information on our retirement benefits. The net periodic benefit is allocated in the same proportion primarily to the underwriting, acquisition and insurance expenses line item with the remainder allocated to the insurance losses and contract holders' benefits line item on the condensed consolidated statements of income for both 2023 and 2022. We made matching contributions totaling $6 million to our 401(k) and Top Hat savings plans during both the second quarter of 2023 and 2022 and contributions of $14 million for both the first half of 2023 and 2022. We m ade no con |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities The company, through its insurance subsidiaries, is involved in claims litigation arising in the ordinary course of conducting its business, both as a liability insurer defending or providing indemnity for third-party claims brought against insureds and as an insurer defending coverage claims brought against it. The company accounts for such activity through the establishment of unpaid loss and loss expense reserves. Subject to the uncertainties discussed in Note 4, Property Casualty Loss and Loss Expenses, and in the discussion in the balance of this Note, we believe that the ultimate liability, if any, with respect to such ordinary-course claims litigation, after consideration of provisions made for potential losses, costs of defense, and reinsurance recoveries, is immaterial to our consolidated financial position, results of operations and cash flows. Beginning in April 2020, like many companies in the property casualty insurance industry, the company’s property casualty subsidiaries, were named as defendants in lawsuits seeking insurance coverage under commercial property insurance policies issued by the company for alleged losses resulting from the shutdown or suspension of their businesses due to the COVID-19 pandemic. Although the allegations vary, the plaintiffs generally seek a declaration of insurance coverage, damages for breach of contract in unspecified amounts for claim denials, interest and attorney fees. Some of the lawsuits also allege that the insurance claims were denied in bad faith or otherwise in violation of state laws and seek extra-contractual or punitive damages. The company denies the allegations in these lawsuits and intends to continue to vigorously defend the lawsuits. The company maintains that it has no coverage obligations with respect to these lawsuits for business income allegedly lost by the plaintiffs due to the COVID-19 pandemic based on the terms of the applicable insurance policies. Although the policy terms vary, in general, the claims at issue in these lawsuits were denied because the policyholder identified no direct physical loss or damage to property at the insured premises, and the governmental orders that led to the complete or partial shutdown of the business were not due to the existence of any direct physical loss or damage to property in the immediate vicinity of the insured premises and did not prohibit access to the insured premises, as required by the terms of the insurance policies. Depending on the individual policy, additional policy terms and conditions may also prohibit coverage, such as exclusions for pollutants, ordinance or law, loss of use, and acts or decisions. The company’s standard commercial property insurance policies generally did not contain a specific virus exclusion. In addition to the inherent difficulty in predicting litigation outcomes, the COVID-19 pandemic business income coverage lawsuits present a number of uncertainties and contingencies that are not yet known, including how many policyholders will ultimately file claims, the number of lawsuits that will be filed, the extent to which any class may be certified, and the size and scope of any such classes. The legal theories advanced by plaintiffs vary by case as do the state laws that govern the policy interpretation. These lawsuits are at various stages of litigation, including several that continue to be amended; many that have been dismissed; several that may be refiled; and others that have been dismissed by trial courts and appealed. Appellate decisions issued to date generally have been favorable for the insurance industry, and the company has received numerous favorable rulings on appeal with no adverse appellate rulings to date. Some cases remain to be decided and in some jurisdictions, cases have been stayed pending appellate decisions in their state or federal circuit. Accordingly, little discovery has occurred on pending cases. In addition, business income calculations depend upon a wide range of factors that are particular to the circumstances of each individual policyholder and, here, virtually none of the plaintiffs have submitted proofs of loss or otherwise quantified or factually supported any allegedly covered loss. Moreover, the company’s experience shows that demands for damages often bear little relation to a reasonable estimate of potential loss. Accordingly, management cannot now reasonably estimate the possible loss or range of loss, if any. Nonetheless, given the number of claims and potential claims, the indeterminate amounts sought, and the inherent unpredictability of litigation, it is possible that adverse outcomes, if any, in the aggregate could have a material adverse effect on the company’s consolidated financial position, 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 state or national classes. Such proceedings have alleged, for example, improper depreciation of labor costs in repair estimates. 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. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2023 | |
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. We also report as Other the underwriting results of Cincinnati Re and Cincinnati Global. See our 2022 Annual Report on Form 10-K, Item 8, Note 18, Segment Information, Page 173, for a description of revenue, income or loss before income taxes and identifiable assets for each of the five segments. Segment information is summarized in the following table: (Dollars in millions) Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Revenues: Commercial lines insurance Commercial casualty $ 373 $ 350 $ 750 $ 686 Commercial property 312 280 611 554 Commercial auto 214 210 428 415 Workers' compensation 72 68 146 136 Other commercial 95 86 187 165 Commercial lines insurance premiums 1,066 994 2,122 1,956 Fee revenues 1 1 2 2 Total commercial lines insurance 1,067 995 2,124 1,958 Personal lines insurance Personal auto 173 155 339 307 Homeowner 251 202 484 397 Other personal 69 56 134 111 Personal lines insurance premiums 493 413 957 815 Fee revenues 1 1 2 2 Total personal lines insurance 494 414 959 817 Excess and surplus lines insurance 132 124 259 236 Fee revenues 1 — 1 1 Total excess and surplus lines insurance 133 124 260 237 Life insurance premiums 80 76 157 151 Fee revenues 3 1 5 2 Total life insurance 83 77 162 153 Investments Investment income, net of expenses 220 195 430 380 Investment gains and losses, net 434 (1,154) 540 (1,820) Total investment revenue 654 (959) 970 (1,440) Other Premiums 172 166 366 308 Other 2 3 5 5 Total other revenues 174 169 371 313 Total revenues $ 2,605 $ 820 $ 4,846 $ 2,038 Income (loss) before income taxes: Insurance underwriting results Commercial lines insurance $ 33 $ (62) $ 31 $ 14 Personal lines insurance (36) (49) (93) 16 Excess and surplus lines insurance 11 19 24 35 Life insurance 13 1 21 8 Investments 624 (987) 910 (1,495) Other 21 25 41 18 Total income (loss) before income taxes $ 666 $ (1,053) $ 934 $ (1,404) Identifiable assets: June 30, December 31, Property casualty insurance $ 5,354 $ 5,178 Life insurance 1,542 1,518 Investments 23,535 22,133 Other 921 903 Total $ 31,352 $ 29,732 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 534 | $ (818) | $ 759 | $ (1,084) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Accounting Policies (Policies)
Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Adopted Accounting Updates | Adopted Accounting Updates ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts In August 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts . ASU 2018-12 requires changes to the measurement and disclosure of long-duration insurance contracts. In November 2020, the FASB issued an ASU that delayed the effective date of ASU 2018-12 to interim and annual reporting periods beginning after December 15, 2022. Related to the company's term and whole life products included in life policy and investment contract reserves, the new guidance requires that cash flow assumptions be reviewed at least annually to determine any necessary updates. Additionally, the discount rate assumption is required to be updated quarterly based on upper-medium grade fixed-income instrument yields (market value discount rates). The life policy and investment contract reserves balance is adjusted through insurance losses and contract holders' benefits for cash flow assumption updates and through accumulated other comprehensive income (AOCI) for discount rate updates. These ASUs also amend the previous guidance related to life deferred policy acquisition costs by requiring amortization of those costs on a constant level basis for a group of contracts that approximates straight-line and the removal of shadow deferred policy acquisition costs for universal life and deferred annuity products. These ASUs also require entities to provide additional disclosures including disaggregated rollforwards of the life policy and investment contract reserves, separate account liabilities and life deferred policy acquisition costs. We adopted these ASUs on a modified retrospective basis on January 1, 2023, resulting in an after-tax increase to shareholders' equity of $31 million. The following table illustrates the effect of adopting ASU 2018-12 in the condensed consolidated balance sheets: (Dollars in millions) June 30, 2023 December 31, 2022 As originally reported As adjusted Difference Reinsurance recoverable $ 694 $ 640 $ 665 $ 25 Prepaid reinsurance premiums 95 79 51 (28) Deferred policy acquisition costs 1,109 1,014 1,013 (1) Total assets 31,352 29,736 29,732 (4) Life policy and investment contract reserves 3,038 3,059 3,015 (44) Deferred income tax 1,158 1,045 1,054 9 Total liabilities 20,322 19,205 19,170 (35) Retained earnings 12,235 11,702 11,711 9 Accumulated other comprehensive income (626) (636) (614) 22 Total shareholders' equity 11,030 10,531 10,562 31 Total liabilities and shareholders' equity 31,352 29,736 29,732 (4) The following table illustrates the effect of adopting ASU 2018-12 in the condensed consolidated statements of income and condensed consolidated statements of comprehensive income: (Dollars in millions, except per share data) Three months ended June 30, 2023 2022 As originally reported As adjusted Difference Earned premiums $ 1,943 $ 1,773 $ 1,773 $ — Insurance losses and contract holders' benefits 1,340 1,309 1,322 13 Underwriting, acquisition and insurance expenses 579 534 533 (1) Deferred income tax expense 81 (263) (265) (2) Net Income (Loss) 534 (808) (818) (10) Change in life policy reserves, reinsurance recoverable and other, net of tax 23 1 143 142 Other comprehensive income (loss) (99) (482) (340) 142 Comprehensive Income (Loss) 435 (1,290) (1,158) 132 Net income (loss) per share: Basic $ 3.40 $ (5.06) $ (5.12) $ (0.06) Diluted 3.38 (5.06) (5.12) (0.06) (Dollars in millions, except per share data) Six months ended June 30, 2023 2022 As originally reported As adjusted Difference Earned premiums $ 3,861 $ 3,463 $ 3,466 $ 3 Insurance losses and contract holders' benefits 2,738 2,348 2,354 6 Underwriting, acquisition and insurance expenses 1,135 1,053 1,053 — Deferred income tax expense 108 (391) (391) — Net Income (Loss) 759 (1,081) (1,084) (3) Change in life policy reserves, reinsurance recoverable and other, net of tax (13) 1 298 297 Other comprehensive income (loss) (12) (1,071) (774) 297 Comprehensive Income (Loss) 747 (2,152) (1,858) 294 Net income (loss) per share: Basic $ 4.83 $ (6.76) $ (6.77) $ (0.01) Diluted 4.80 (6.76) (6.77) (0.01) The adoption of ASU 2018-12 did not have a material impact on the company's condensed consolidated cash flows. The table below shows the ASU 2018-12 adoption impacts to the life policy and investment contract reserves as of January 1, 2021 (transition date), pretax: (Dollars in millions) Term Whole life Deferred annuity Universal life Other Total At January 1, 2021 Balance, pre-adoption at December 31, 2020 $ 901 $ 363 $ 761 $ 567 $ 323 $ 2,915 Removal of shadow adjustments — — — — 13 13 Net premiums in excess of gross premiums 14 1 — — — 15 Remeasurement at market value discount rates 372 245 — — — 617 Balance, post-adoption at January 1, 2021 $ 1,287 $ 609 $ 761 $ 567 $ 336 $ 3,560 The table below shows the ASU 2018-12 adoption impacts to the life reinsurance recoverable asset as of January 1, 2021, pretax: (Dollars in millions) Term Whole life Deferred annuity Universal life Other Total At January 1, 2021 Balance, pre-adoption at December 31, 2020 $ 113 $ 26 $ — $ — $ 78 $ 217 Remeasurement at market value discount rates 29 18 — — — 47 Other adjustments 20 1 — 2 — 23 Balance, post-adoption at January 1, 2021 $ 162 $ 45 $ — $ 2 $ 78 $ 287 |
Accounting Policies (Tables)
Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Adopted Accounting Updates | The following table illustrates the effect of adopting ASU 2018-12 in the condensed consolidated balance sheets: (Dollars in millions) June 30, 2023 December 31, 2022 As originally reported As adjusted Difference Reinsurance recoverable $ 694 $ 640 $ 665 $ 25 Prepaid reinsurance premiums 95 79 51 (28) Deferred policy acquisition costs 1,109 1,014 1,013 (1) Total assets 31,352 29,736 29,732 (4) Life policy and investment contract reserves 3,038 3,059 3,015 (44) Deferred income tax 1,158 1,045 1,054 9 Total liabilities 20,322 19,205 19,170 (35) Retained earnings 12,235 11,702 11,711 9 Accumulated other comprehensive income (626) (636) (614) 22 Total shareholders' equity 11,030 10,531 10,562 31 Total liabilities and shareholders' equity 31,352 29,736 29,732 (4) The following table illustrates the effect of adopting ASU 2018-12 in the condensed consolidated statements of income and condensed consolidated statements of comprehensive income: (Dollars in millions, except per share data) Three months ended June 30, 2023 2022 As originally reported As adjusted Difference Earned premiums $ 1,943 $ 1,773 $ 1,773 $ — Insurance losses and contract holders' benefits 1,340 1,309 1,322 13 Underwriting, acquisition and insurance expenses 579 534 533 (1) Deferred income tax expense 81 (263) (265) (2) Net Income (Loss) 534 (808) (818) (10) Change in life policy reserves, reinsurance recoverable and other, net of tax 23 1 143 142 Other comprehensive income (loss) (99) (482) (340) 142 Comprehensive Income (Loss) 435 (1,290) (1,158) 132 Net income (loss) per share: Basic $ 3.40 $ (5.06) $ (5.12) $ (0.06) Diluted 3.38 (5.06) (5.12) (0.06) (Dollars in millions, except per share data) Six months ended June 30, 2023 2022 As originally reported As adjusted Difference Earned premiums $ 3,861 $ 3,463 $ 3,466 $ 3 Insurance losses and contract holders' benefits 2,738 2,348 2,354 6 Underwriting, acquisition and insurance expenses 1,135 1,053 1,053 — Deferred income tax expense 108 (391) (391) — Net Income (Loss) 759 (1,081) (1,084) (3) Change in life policy reserves, reinsurance recoverable and other, net of tax (13) 1 298 297 Other comprehensive income (loss) (12) (1,071) (774) 297 Comprehensive Income (Loss) 747 (2,152) (1,858) 294 Net income (loss) per share: Basic $ 4.83 $ (6.76) $ (6.77) $ (0.01) Diluted 4.80 (6.76) (6.77) (0.01) The table below shows the ASU 2018-12 adoption impacts to the life policy and investment contract reserves as of January 1, 2021 (transition date), pretax: (Dollars in millions) Term Whole life Deferred annuity Universal life Other Total At January 1, 2021 Balance, pre-adoption at December 31, 2020 $ 901 $ 363 $ 761 $ 567 $ 323 $ 2,915 Removal of shadow adjustments — — — — 13 13 Net premiums in excess of gross premiums 14 1 — — — 15 Remeasurement at market value discount rates 372 245 — — — 617 Balance, post-adoption at January 1, 2021 $ 1,287 $ 609 $ 761 $ 567 $ 336 $ 3,560 The table below shows the ASU 2018-12 adoption impacts to the life reinsurance recoverable asset as of January 1, 2021, pretax: (Dollars in millions) Term Whole life Deferred annuity Universal life Other Total At January 1, 2021 Balance, pre-adoption at December 31, 2020 $ 113 $ 26 $ — $ — $ 78 $ 217 Remeasurement at market value discount rates 29 18 — — — 47 Other adjustments 20 1 — 2 — 23 Balance, post-adoption at January 1, 2021 $ 162 $ 45 $ — $ 2 $ 78 $ 287 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Investments [Abstract] | |
Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses and Fair Value of Fixed-maturity Securities | The following table provides amortized cost, gross unrealized gains, gross unrealized losses and fair value for our fixed-maturity securities: (Dollars in millions) Amortized Gross unrealized Fair value At June 30, 2023 gains losses Fixed-maturity securities: Corporate $ 7,719 $ 39 $ 608 $ 7,150 States, municipalities and political subdivisions 4,951 23 262 4,712 Government-sponsored enterprises 582 — 8 574 Commercial mortgage-backed 227 — 17 210 United States government 209 — 5 204 Foreign government 20 — — 20 Total $ 13,708 $ 62 $ 900 $ 12,870 At December 31, 2022 Fixed-maturity securities: Corporate $ 7,412 $ 37 $ 580 $ 6,869 States, municipalities and political subdivisions 4,901 24 303 4,622 Government-sponsored enterprises 186 — 3 183 Commercial mortgage-backed 250 — 16 234 United States government 196 — 5 191 Foreign government 34 — 1 33 Total $ 12,979 $ 61 $ 908 $ 12,132 |
Fair Value and Unrealized Losses by Investment Category and By the Duration of the Securities' Continuous Unrealized Loss Position | The table below provides fair values and gross unrealized losses by investment category and by the duration of the securities' continuous unrealized loss positions: (Dollars in millions) Less than 12 months 12 months or more Total At June 30, 2023 Fair Unrealized Fair Unrealized Fair Unrealized Fixed-maturity securities: Corporate $ 2,133 $ 94 $ 4,347 $ 514 $ 6,480 $ 608 States, municipalities and political subdivisions 1,042 11 1,897 251 2,939 262 Government-sponsored enterprises 502 6 32 2 534 8 Commercial mortgage-backed 1 — 208 17 209 17 United States government 144 2 60 3 204 5 Foreign government 15 — — — 15 — Total $ 3,837 $ 113 $ 6,544 $ 787 $ 10,381 $ 900 At December 31, 2022 Fixed-maturity securities: Corporate $ 5,651 $ 412 $ 661 $ 168 $ 6,312 $ 580 States, municipalities and political subdivisions 2,600 274 77 29 2,677 303 Government-sponsored enterprises 123 3 3 — 126 3 Commercial mortgage-backed 215 13 14 3 229 16 United States government 146 3 41 2 187 5 Foreign government 25 1 4 — 29 1 Total $ 8,760 $ 706 $ 800 $ 202 $ 9,560 $ 908 |
Investments Classified by Contractual Maturity Date | Contractual maturity dates for fixed-maturities securities were: (Dollars in millions) Amortized Fair % of fair At June 30, 2023 Maturity dates: Due in one year or less $ 772 $ 766 6.0 % Due after one year through five years 4,348 4,179 32.5 Due after five years through ten years 3,508 3,312 25.7 Due after ten years 5,080 4,613 35.8 Total $ 13,708 $ 12,870 100.0 % |
Investment Income, Realized Investment Gains And Losses And Change In Unrealized Investment Gains And Losses | The following table provides investment income and investment gains and losses, net: (Dollars in millions) Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Investment income: Interest $ 147 $ 124 $ 287 $ 247 Dividends 70 72 136 137 Other 6 2 13 3 Total 223 198 436 387 Less investment expenses 3 3 6 7 Total $ 220 $ 195 $ 430 $ 380 Investment gains and losses, net: Equity securities: Investment gains and losses on securities sold, net $ — $ 5 $ (4) $ 37 Unrealized gains and losses on securities still held, net 459 (1,175) 568 (1,882) Subtotal 459 (1,170) 564 (1,845) Fixed-maturity securities: Gross realized gains — 2 1 6 Gross realized losses — (2) (1) (3) Write-down of impaired securities with intent to sell (4) — (4) — Subtotal (4) — (4) 3 Other (21) 16 (20) 22 Total $ 434 $ (1,154) $ 540 $ (1,820) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
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 June 30, 2023, and December 31, 2022. We do not have any liabilities carried at fair value. (Dollars in millions) Level 1 Level 2 Level 3 Total At June 30, 2023 Fixed maturities, available for sale: Corporate $ — $ 7,150 $ — $ 7,150 States, municipalities and political subdivisions — 4,712 — 4,712 Government-sponsored enterprises — 574 — 574 Commercial mortgage-backed — 210 — 210 United States government 204 — — 204 Foreign government — 20 — 20 Subtotal 204 12,666 — 12,870 Common equities 10,124 — — 10,124 Nonredeemable preferred equities — 378 — 378 Separate accounts taxable fixed maturities — 837 — 837 Top Hat savings plan mutual funds and common 62 — — 62 Total $ 10,390 $ 13,881 $ — $ 24,271 At December 31, 2022 Fixed maturities, available for sale: Corporate $ — $ 6,869 $ — $ 6,869 States, municipalities and political subdivisions — 4,622 — 4,622 Government-sponsored enterprises — 183 — 183 Commercial mortgage-backed — 234 — 234 United States government 191 — — 191 Foreign government — 33 — 33 Subtotal 191 11,941 — 12,132 Common equities 9,454 — — 9,454 Nonredeemable preferred equities — 387 — 387 Separate accounts taxable fixed maturities — 815 — 815 Top Hat savings plan mutual funds and common 57 — — 57 Total $ 9,702 $ 13,143 $ — $ 22,845 |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block] | This table summarizes the book value and principal amounts of our long-term debt: (Dollars in millions) Book value Principal amount Interest Year of June 30, December 31, June 30, December 31, 2023 2022 2023 2022 6.900% 1998 Senior debentures, due 2028 $ 27 $ 27 $ 28 $ 28 6.920% 2005 Senior debentures, due 2028 391 391 391 391 6.125% 2004 Senior notes, due 2034 371 371 374 374 Total $ 789 $ 789 $ 793 $ 793 |
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) Level 1 Level 2 Level 3 Total At June 30, 2023 Note payable $ — $ 25 $ — $ 25 6.900% senior debentures, due 2028 — 29 — 29 6.920% senior debentures, due 2028 — 419 — 419 6.125% senior notes, due 2034 — 396 — 396 Total $ — $ 869 $ — $ 869 At December 31, 2022 Note payable $ — $ 50 $ — $ 50 6.900% senior debentures, due 2028 — 29 — 29 6.920% senior debentures, due 2028 — 418 — 418 6.125% senior notes, due 2034 — 388 — 388 Total $ — $ 885 $ — $ 885 |
Fair Value of Life Policy Loans | The following table shows the fair value of our life policy loans included in other invested assets and the fair values of our deferred annuities and structured settlements included in life policy and investment contract reserves: (Dollars in millions) Level 1 Level 2 Level 3 Total At June 30, 2023 Life policy loans $ — $ — $ 37 $ 37 Deferred annuities — — 599 599 Structured settlements — 141 — 141 Total $ — $ 141 $ 599 $ 740 At December 31, 2022 Life policy loans $ — $ — $ 37 $ 37 Deferred annuities — — 621 621 Structured settlements — 143 — 143 Total $ — $ 143 $ 621 $ 764 |
Property Casualty Loss and Lo_2
Property Casualty Loss and Loss Expenses (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Premiums Written, Net [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) Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Gross loss and loss expense reserves, beginning of period $ 8,626 $ 7,287 $ 8,336 $ 7,229 Less reinsurance recoverable 424 319 405 327 Net loss and loss expense reserves, beginning of period 8,202 6,968 7,931 6,902 Net incurred loss and loss expenses related to: Current accident year 1,363 1,299 2,739 2,296 Prior accident years (101) (59) (160) (100) Total incurred 1,262 1,240 2,579 2,196 Net paid loss and loss expenses related to: Current accident year 502 368 689 537 Prior accident years 579 524 1,438 1,245 Total paid 1,081 892 2,127 1,782 Net loss and loss expense reserves, end of period 8,383 7,316 8,383 7,316 Plus reinsurance recoverable 424 287 424 287 Gross loss and loss expense reserves, end of period $ 8,807 $ 7,603 $ 8,807 $ 7,603 |
Life Policy and Investment Co_2
Life Policy and Investment Contract Reserves (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Liability for Future Policy Benefit, before Reinsurance [Abstract] | |
Reserve For Losses Loss Adjustment Expenses Table | The following table summarizes our life policy and investment contract reserves and provides a reconciliation of the balances described in the below tables to those in the condensed consolidated balance sheets: (Dollars in millions) June 30, December 31, Life policy reserves: Term $ 1,015 $ 961 Whole life 421 408 Other 95 94 Subtotal 1,531 1,463 Investment contract reserves: Deferred annuities 696 734 Universal life 578 578 Structured settlements 126 129 Other 107 111 Subtotal 1,507 1,552 Total life policy and investment contract reserves $ 3,038 $ 3,015 |
Adopted Accounting Updates | The following table illustrates the effect of adopting ASU 2018-12 in the condensed consolidated balance sheets: (Dollars in millions) June 30, 2023 December 31, 2022 As originally reported As adjusted Difference Reinsurance recoverable $ 694 $ 640 $ 665 $ 25 Prepaid reinsurance premiums 95 79 51 (28) Deferred policy acquisition costs 1,109 1,014 1,013 (1) Total assets 31,352 29,736 29,732 (4) Life policy and investment contract reserves 3,038 3,059 3,015 (44) Deferred income tax 1,158 1,045 1,054 9 Total liabilities 20,322 19,205 19,170 (35) Retained earnings 12,235 11,702 11,711 9 Accumulated other comprehensive income (626) (636) (614) 22 Total shareholders' equity 11,030 10,531 10,562 31 Total liabilities and shareholders' equity 31,352 29,736 29,732 (4) The following table illustrates the effect of adopting ASU 2018-12 in the condensed consolidated statements of income and condensed consolidated statements of comprehensive income: (Dollars in millions, except per share data) Three months ended June 30, 2023 2022 As originally reported As adjusted Difference Earned premiums $ 1,943 $ 1,773 $ 1,773 $ — Insurance losses and contract holders' benefits 1,340 1,309 1,322 13 Underwriting, acquisition and insurance expenses 579 534 533 (1) Deferred income tax expense 81 (263) (265) (2) Net Income (Loss) 534 (808) (818) (10) Change in life policy reserves, reinsurance recoverable and other, net of tax 23 1 143 142 Other comprehensive income (loss) (99) (482) (340) 142 Comprehensive Income (Loss) 435 (1,290) (1,158) 132 Net income (loss) per share: Basic $ 3.40 $ (5.06) $ (5.12) $ (0.06) Diluted 3.38 (5.06) (5.12) (0.06) (Dollars in millions, except per share data) Six months ended June 30, 2023 2022 As originally reported As adjusted Difference Earned premiums $ 3,861 $ 3,463 $ 3,466 $ 3 Insurance losses and contract holders' benefits 2,738 2,348 2,354 6 Underwriting, acquisition and insurance expenses 1,135 1,053 1,053 — Deferred income tax expense 108 (391) (391) — Net Income (Loss) 759 (1,081) (1,084) (3) Change in life policy reserves, reinsurance recoverable and other, net of tax (13) 1 298 297 Other comprehensive income (loss) (12) (1,071) (774) 297 Comprehensive Income (Loss) 747 (2,152) (1,858) 294 Net income (loss) per share: Basic $ 4.83 $ (6.76) $ (6.77) $ (0.01) Diluted 4.80 (6.76) (6.77) (0.01) The table below shows the ASU 2018-12 adoption impacts to the life policy and investment contract reserves as of January 1, 2021 (transition date), pretax: (Dollars in millions) Term Whole life Deferred annuity Universal life Other Total At January 1, 2021 Balance, pre-adoption at December 31, 2020 $ 901 $ 363 $ 761 $ 567 $ 323 $ 2,915 Removal of shadow adjustments — — — — 13 13 Net premiums in excess of gross premiums 14 1 — — — 15 Remeasurement at market value discount rates 372 245 — — — 617 Balance, post-adoption at January 1, 2021 $ 1,287 $ 609 $ 761 $ 567 $ 336 $ 3,560 The table below shows the ASU 2018-12 adoption impacts to the life reinsurance recoverable asset as of January 1, 2021, pretax: (Dollars in millions) Term Whole life Deferred annuity Universal life Other Total At January 1, 2021 Balance, pre-adoption at December 31, 2020 $ 113 $ 26 $ — $ — $ 78 $ 217 Remeasurement at market value discount rates 29 18 — — — 47 Other adjustments 20 1 — 2 — 23 Balance, post-adoption at January 1, 2021 $ 162 $ 45 $ — $ 2 $ 78 $ 287 |
Liability for Future Policy Benefit, Activity | The balances and changes in the term and whole life policy reserves included in life policy and investment contract reserves is as follows: (Dollars in millions) Three months ended June 30, 2023 2022 Term Whole life Term Whole life Present value of expected net premiums: Balance, beginning of period $ 1,699 $ 217 $ 1,686 $ 226 Beginning balance at original discount rate 1,715 220 1,542 207 Effect of changes in cash flow assumptions (5) (6) 149 (1) Effect of actual variances from expected experience (9) — (3) — Adjusted beginning of period balance 1,701 214 1,688 206 Issuances 40 10 45 8 Interest accrual 17 2 17 2 Net premiums collected (46) (7) (46) (7) Ending balance at original discount rate 1,712 219 1,704 209 Effect of changes in discount rate assumptions (48) (7) 19 1 Balance, end of period 1,664 212 1,723 210 Present value of expected future policy benefits: Balance, beginning of period 2,691 644 2,745 736 Beginning balance at original discount rate 2,712 614 2,463 586 Effect of changes in cash flow assumptions 5 (10) 166 (3) Effect of actual variances from expected experience (11) — (1) — Adjusted beginning of period balance 2,706 604 2,628 583 Issuances 40 11 45 7 Interest accrual 30 7 28 8 Benefits paid (39) (7) (38) (8) Ending balance at original discount rate 2,737 615 2,663 590 Effect of changes in discount rate assumptions (75) 18 39 56 Balance, end of period 2,662 633 2,702 646 Net liability for future policy benefits: Present value of expected future policy benefits less expected net premiums 998 421 979 436 Impact of flooring at cohort level 17 — 20 2 Net life policy reserves 1,015 421 999 438 Less reinsurance recoverable at original discount rate (100) (25) (104) (25) Less effect of discount rate assumption changes on reinsurance recoverable (8) (5) (13) (7) Net life policy reserves, after reinsurance recoverable $ 907 $ 391 $ 882 $ 406 Weighted-average duration of the net life policy reserves in years 12 16 12 17 (Dollars in millions) Six months ended June 30, 2023 2022 Term Whole life Term Whole life Present value of expected net premiums: Balance, beginning of period $ 1,643 $ 208 $ 1,801 $ 241 Beginning balance at original discount rate 1,708 217 1,503 201 Effect of changes in cash flow assumptions (5) (6) 145 (1) Effect of actual variances from expected experience (12) 1 8 — Adjusted beginning of period balance 1,691 212 1,656 200 Issuances 78 17 104 19 Interest accrual 35 4 32 4 Net premiums collected (92) (14) (88) (14) Ending balance at original discount rate 1,712 219 1,704 209 Effect of changes in discount rate assumptions (48) (7) 19 1 Balance, end of period 1,664 212 1,723 210 Present value of expected future policy benefits: Balance, beginning of period 2,584 614 2,993 826 Beginning balance at original discount rate 2,692 607 2,425 577 Effect of changes in cash flow assumptions 5 (10) 162 (3) Effect of actual variances from expected experience (13) 1 17 — Adjusted beginning of period balance 2,684 598 2,604 574 Issuances 78 17 104 18 Interest accrual 60 15 55 15 Benefits paid (85) (15) (100) (17) Ending balance at original discount rate 2,737 615 2,663 590 Effect of changes in discount rate assumptions (75) 18 39 56 Balance, end of period 2,662 633 2,702 646 Net liability for future policy benefits: Present value of expected future policy benefits less expected net premiums 998 421 979 436 Impact of flooring at cohort level 17 — 20 2 Net life policy reserves 1,015 421 999 438 Less reinsurance recoverable at original discount rate (100) (25) (104) (25) Less effect of discount rate assumption changes on reinsurance recoverable (8) (5) (13) (7) Net life policy reserves, after reinsurance recoverable $ 907 $ 391 $ 882 $ 406 Weighted-average duration of the net life policy reserves in years 12 16 12 17 |
Undiscounted and Discounted Expected Future Benefit Payments and Expected Gross Premiums | The following table shows the amount of undiscounted and discounted expected future benefit payments and expected gross premiums for our term and whole life policies: (Dollars in millions) At June 30, 2023 2022 Undiscounted Discounted Undiscounted Discounted Term Expected future benefit payments $ 4,738 $ 2,662 $ 4,589 $ 2,702 Expected future gross premiums 4,345 2,583 4,378 2,690 Whole life Expected future benefit payments $ 1,610 $ 633 $ 1,517 $ 646 Expected future gross premiums 641 390 583 372 |
Revenue and Interest Recognized in Income | The following table shows the amount of revenue and interest recognized in the condensed consolidated statements of income related to our term and whole life policies: (Dollars in millions) Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Gross premiums Term $ 73 $ 71 $ 146 $ 140 Whole life 13 12 25 24 Total $ 86 $ 83 $ 171 $ 164 Interest accretion Term $ 12 $ 11 $ 24 $ 23 Whole life 5 6 11 11 Total $ 17 $ 17 $ 35 $ 34 |
Weighted Average Interest Rate for Life Policy Products | The following table shows the weighted-average interest rate for our term and whole life products : At June 30, 2023 2022 Term Interest accretion rate 5.29 % 5.16 % Current discount rate 5.11 4.20 Whole life Interest accretion rate 5.93 % 5.98 % Current discount rate 5.22 4.74 |
Policyholder Account Balance | The following table shows the balances and changes in policyholders' account balances included in investment contract reserves: (Dollars in millions) Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Deferred annuity Universal life Deferred annuity Universal life Deferred annuity Universal life Deferred annuity Universal life Balance, beginning of period $ 711 $ 458 $ 756 $ 456 $ 734 $ 457 $ 763 $ 454 Premiums received 15 9 5 10 25 20 11 21 Policy charges — (10) — (9) — (20) — (19) Surrenders and withdrawals (32) (4) (8) (2) (68) (7) (20) (5) Benefit payments (3) (2) (4) (2) (6) (4) (10) (3) Interest credited 5 5 6 4 11 10 11 9 Balance, end of period $ 696 $ 456 $ 755 $ 457 $ 696 $ 456 $ 755 $ 457 Weighted average crediting rate 3.41 % 4.29 % 3.06 % 4.25 % 3.41 % 4.29 % 3.06 % 4.25 % Net amount at risk $ — $ 4,030 $ — $ 4,141 $ — $ 4,030 $ — $ 4,141 Cash surrender value 691 423 750 422 691 423 750 422 |
Policyholder Account Balance, Guaranteed Minimum Crediting Rate | The following table shows the balance of account values by range of guaranteed minimum crediting rates, in basis points, and the related range of the difference between rates being credited to policyholders and the respective guaranteed minimums for our deferred annuity and universal life contracts: (Dollars in millions) At guaranteed minimum 1 to 50 basis points above 51-150 basis points above Greater than 150 basis points Total At June 30, 2023 Deferred annuity 1.00-3.00% $ 5 $ 400 $ 17 $ 224 646 3.01-4.00% 50 — — — 50 Total $ 55 $ 400 $ 17 $ 224 $ 696 Universal life 1.00-3.00% $ 61 $ — $ 56 $ 3 $ 120 3.01-4.00% 53 — — — 53 Greater than 4.00% 283 — — — 283 Total $ 397 $ — $ 56 $ 3 $ 456 At June 30, 2022 Deferred annuity 1.00-3.00% $ 475 $ — $ 173 $ 56 $ 704 3.01-4.00% 51 — — — 51 Total $ 526 $ — $ 173 $ 56 $ 755 Universal life 1.00-3.00% $ 60 $ 45 $ 7 $ 2 $ 114 3.01-4.00% 52 — — — 52 Greater than 4.00% 291 — — — 291 Total $ 403 $ 45 $ 7 $ 2 $ 457 |
Additional Liability, Long-Duration Insurance | The following table shows the balances and changes in the other additional liability related to the no-lapse guarantees contained within our universal life contracts: (Dollars in millions) Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Balance, beginning of period $ 125 $ 127 $ 121 $ 133 Balance, beginning of period before shadow reserve adjustments 127 127 123 131 Effect of changes in cash flow assumptions (5) (2) (5) (2) Effect of actual variances from expected experience — 2 (1) 5 Adjusted beginning of period balance 122 127 117 134 Interest accrual 1 1 2 2 Excess death benefits (2) (4) (2) (12) Attributed assessments 3 3 6 6 Effect of changes in interest rate assumptions — (4) 1 (7) Balance, end of period before shadow reserve adjustments 124 123 124 123 Shadow reserve adjustments (2) (1) (2) (1) Balance, end of period 122 122 122 122 Less reinsurance recoverable, end of period 7 6 7 6 Net other additional liability, after reinsurance recoverable $ 129 $ 128 $ 129 $ 128 Weighted-average duration of the other additional liability in years 32 35 32 35 |
Separate Account, Liability | The following table shows balances and changes in separate account balances during the period: (Dollars in millions) Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Balance, beginning of period $ 899 $ 903 $ 892 $ 959 Interest credited before policy charges 10 10 20 20 Change in unrealized gains and losses impacting separate account liabilities — (53) — (105) Benefit payments (1) — (3) (10) Other 3 — 2 (4) Balance, end of period $ 911 $ 860 $ 911 $ 860 Cash surrender value $ 906 $ 878 $ 906 $ 878 |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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) Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Property casualty: Deferred policy acquisition costs asset, beginning of period $ 714 $ 665 $ 682 $ 602 Capitalized deferred policy acquisition costs 407 375 779 739 Amortized deferred policy acquisition costs (350) (317) (690) (618) Deferred policy acquisition costs asset, end of period $ 771 $ 723 $ 771 $ 723 Life: Deferred policy acquisition costs asset, beginning of period $ 334 $ 319 $ 331 $ 314 Capitalized deferred policy acquisition costs 11 10 22 22 Amortized deferred policy acquisition costs (7) (6) (15) (13) Deferred policy acquisition costs asset, end of period $ 338 $ 323 $ 338 $ 323 Consolidated: Deferred policy acquisition costs asset, beginning of period $ 1,048 $ 984 $ 1,013 $ 916 Capitalized deferred policy acquisition costs 418 385 801 761 Amortized deferred policy acquisition costs (357) (323) (705) (631) Deferred policy acquisition costs asset, end of period $ 1,109 $ 1,046 $ 1,109 $ 1,046 |
Life Deferred Policy Acquisition Costs by Product | The table below shows the life deferred policy acquisition costs asset by product: (Dollars in millions) Three months ended June 30, 2023 Term Whole life Deferred annuity Universal life Total Balance, beginning of period $ 231 $ 44 $ 7 $ 52 $ 334 Capitalized deferred policy acquisition costs 7 2 1 1 11 Amortized deferred policy acquisition costs (5) (1) — (1) (7) Balance, end of period $ 233 $ 45 $ 8 $ 52 $ 338 Three months ended June 30, 2022 Balance, beginning of period $ 220 $ 39 $ 7 $ 53 $ 319 Capitalized deferred policy acquisition costs 8 1 — 1 $ 10 Amortized deferred policy acquisition costs (6) — — — $ (6) Balance, end of period $ 222 $ 40 $ 7 $ 54 $ 323 (Dollars in millions) Six months ended June 30, 2023 Term Whole life Deferred annuity Universal life Total Balance, beginning of period $ 228 $ 43 $ 7 $ 53 $ 331 Capitalized deferred policy acquisition costs 16 4 1 1 22 Amortized deferred policy acquisition costs (11) (2) — (2) (15) Balance, end of period $ 233 $ 45 $ 8 $ 52 $ 338 Six months ended June 30, 2022 Balance, beginning of period $ 215 $ 38 $ 7 $ 54 $ 314 Capitalized deferred policy acquisition costs 18 3 — 1 $ 22 Amortized deferred policy acquisition costs (11) (1) — (1) $ (13) Balance, end of period $ 222 $ 40 $ 7 $ 54 $ 323 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive income (AOCI) includes changes in unrealized gains and losses on investments, changes in pension obligations and changes in life policy reserves, reinsurance recoverable and other as follows: (Dollars in millions) Three months ended June 30, 2023 2022 Before tax Income tax Net Before tax Income tax Net Investments: AOCI, beginning of period $ (684) $ (147) $ (537) $ 46 $ 8 $ 38 OCI before investment gains and losses, net, recognized in net income (158) (34) (124) (610) (127) (483) Investment gains and losses, net, recognized in net income 4 2 2 — — — OCI (154) (32) (122) (610) (127) (483) AOCI, end of period $ (838) $ (179) $ (659) $ (564) $ (119) $ (445) Pension obligations: AOCI, beginning of period $ 30 $ 8 $ 22 $ 27 $ 7 $ 20 OCI excluding amortization recognized in net income — — — — — — Amortization recognized in net income (1) (1) — — — — OCI (1) (1) — — — — AOCI, end of period $ 29 $ 7 $ 22 $ 27 $ 7 $ 20 Life policy reserves, reinsurance recoverable and other: AOCI, beginning of period $ (16) $ (4) $ (12) $ (248) $ (52) $ (196) OCI before investment gains and losses, net, recognized in net income 29 6 23 181 38 143 Investment gains and losses, net, recognized in net income — — — — — — OCI 29 6 23 181 38 143 AOCI, end of period $ 13 $ 2 $ 11 $ (67) $ (14) $ (53) Summary of AOCI: AOCI, beginning of period $ (670) $ (143) $ (527) $ (175) $ (37) $ (138) Investments OCI (154) (32) (122) (610) (127) (483) Pension obligations OCI (1) (1) — — — — Life policy reserves, reinsurance recoverable and other OCI 29 6 23 181 38 143 Total OCI (126) (27) (99) (429) (89) (340) AOCI, end of period $ (796) $ (170) $ (626) $ (604) $ (126) $ (478) (Dollars in millions) Six months ended June 30, 2023 2022 Before tax Income tax Net Before tax Income tax Net Investments: AOCI, beginning of period $ (847) $ (182) $ (665) $ 792 $ 165 $ 627 OCI before investment gains and losses, net, recognized in net income 5 1 4 (1,353) (284) (1,069) Investment gains and losses, net, recognized in net income 4 2 2 (3) — (3) OCI 9 3 6 (1,356) (284) (1,072) AOCI, end of period $ (838) $ (179) $ (659) $ (564) $ (119) $ (445) Pension obligations: AOCI, beginning of period $ 36 $ 9 $ 27 $ 27 $ 7 $ 20 OCI excluding amortization recognized in net income (5) (1) (4) — — — Amortization recognized in net income (2) (1) (1) — — — OCI (7) (2) (5) — — — AOCI, end of period $ 29 $ 7 $ 22 $ 27 $ 7 $ 20 Life policy reserves, reinsurance recoverable and other: AOCI, beginning of period $ 29 $ 5 $ 24 $ 1 $ — $ 1 Cumulative effect of change in accounting for long duration insurance contracts — — — (445) (93) (352) Adjusted AOCI, beginning of period 29 5 24 (444) (93) (351) OCI before investment gains and losses, net, recognized in net income (16) (3) (13) 377 79 298 Investment gains and losses, net, recognized in net income — — — — — — OCI (16) (3) (13) 377 79 298 AOCI, end of period $ 13 $ 2 $ 11 $ (67) $ (14) $ (53) Summary of AOCI: AOCI, beginning of period $ (782) $ (168) $ (614) $ 820 $ 172 $ 648 Cumulative effect of change in accounting for long duration insurance contracts — — — (445) (93) (352) Adjusted AOCI, beginning of period (782) (168) (614) 375 79 296 Investments OCI 9 3 6 (1,356) (284) (1,072) Pension obligations OCI (7) (2) (5) — — — Life policy reserves, reinsurance recoverable and other OCI (16) (3) (13) 377 79 298 Total OCI (14) (2) (12) (979) (205) (774) AOCI, end of period $ (796) $ (170) $ (626) $ (604) $ (126) $ (478) |
Reinsurance (Tables)
Reinsurance (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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) Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Direct written premiums $ 2,071 $ 1,871 $ 3,930 $ 3,574 Assumed written premiums 194 193 438 456 Ceded written premiums (115) (100) (199) (167) Net written premiums $ 2,150 $ 1,964 $ 4,169 $ 3,863 Direct earned premiums $ 1,806 $ 1,631 $ 3,566 $ 3,192 Assumed earned premiums 134 134 293 255 Ceded earned premiums (77) (68) (155) (132) Earned premiums $ 1,863 $ 1,697 $ 3,704 $ 3,315 Direct incurred loss and loss expenses $ 1,265 $ 1,174 $ 2,564 $ 2,069 Assumed incurred loss and loss expenses 58 67 134 140 Ceded incurred loss and loss expenses (61) (1) (119) (13) Incurred loss and loss expenses $ 1,262 $ 1,240 $ 2,579 $ 2,196 |
Life Insurance Assumed and Ceded Business | The table below summarizes our consolidated life insurance earned premiums and contract holders' benefits incurred: (Dollars in millions) Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Direct earned premiums $ 100 $ 96 $ 196 $ 189 Ceded earned premiums (20) (20) (39) (38) Earned premiums $ 80 $ 76 $ 157 $ 151 Direct contract holders' benefits incurred 100 109 197 212 Ceded contract holders' benefits incurred (22) (27) (38) (54) Contract holders' benefits incurred $ 78 $ 82 $ 159 $ 158 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Differences Between Statutory Income Tax Rate And Effective Income Tax Rate | The differences between the 21% statutory federal income tax rate and our effective income tax rate were as follows: (Dollars in millions) Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Tax at statutory rate: $ 140 21.0 % $ (220) 21.0 % $ 196 21.0 % $ (294) 21.0 % Increase (decrease) resulting from: Tax-exempt income from municipal bonds (5) (0.8) (5) 0.5 (10) (1.1) (10) 0.7 Dividend received exclusion (6) (0.9) (5) 0.5 (11) (1.2) (10) 0.7 Other 3 0.5 (5) 0.3 — — (6) 0.4 Provision (benefit) for income taxes $ 132 19.8 % $ (235) 22.3 % $ 175 18.7 % $ (320) 22.8 % |
Net Income (Loss) Per Common _2
Net Income (Loss) Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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) Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Numerator: Net income (loss)—basic and diluted $ 534 $ (818) $ 759 $ (1,084) Denominator: Basic weighted-average common shares outstanding 157.0 159.6 157.1 160.0 Effect of share-based awards: Stock options 0.6 — 0.8 — Nonvested shares 0.4 — 0.4 — Diluted weighted-average shares 158.0 159.6 158.3 160.0 Earnings (loss) per share: Basic $ 3.40 $ (5.12) $ 4.83 $ (6.77) Diluted $ 3.38 $ (5.12) $ 4.80 $ (6.77) Number of anti-dilutive share-based awards 1.5 2.0 1.5 2.2 |
Employee Retirement Benefits (T
Employee Retirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Defined Benefit Plans Disclosures | The following summarizes the components of net periodic benefit for our qualified and supplemental pension plans: (Dollars in millions) Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Service cost $ 2 $ 3 $ 3 $ 5 Non-service (benefit) costs: Interest cost 3 2 6 5 Expected return on plan assets (5) (5) (10) (11) Amortization of actuarial loss and prior service cost (1) — (2) — Other — — (5) — Total non-service benefit (3) (3) (11) (6) Net periodic benefit $ (1) $ — $ (8) $ (1) |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment information is summarized in the following table: (Dollars in millions) Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Revenues: Commercial lines insurance Commercial casualty $ 373 $ 350 $ 750 $ 686 Commercial property 312 280 611 554 Commercial auto 214 210 428 415 Workers' compensation 72 68 146 136 Other commercial 95 86 187 165 Commercial lines insurance premiums 1,066 994 2,122 1,956 Fee revenues 1 1 2 2 Total commercial lines insurance 1,067 995 2,124 1,958 Personal lines insurance Personal auto 173 155 339 307 Homeowner 251 202 484 397 Other personal 69 56 134 111 Personal lines insurance premiums 493 413 957 815 Fee revenues 1 1 2 2 Total personal lines insurance 494 414 959 817 Excess and surplus lines insurance 132 124 259 236 Fee revenues 1 — 1 1 Total excess and surplus lines insurance 133 124 260 237 Life insurance premiums 80 76 157 151 Fee revenues 3 1 5 2 Total life insurance 83 77 162 153 Investments Investment income, net of expenses 220 195 430 380 Investment gains and losses, net 434 (1,154) 540 (1,820) Total investment revenue 654 (959) 970 (1,440) Other Premiums 172 166 366 308 Other 2 3 5 5 Total other revenues 174 169 371 313 Total revenues $ 2,605 $ 820 $ 4,846 $ 2,038 Income (loss) before income taxes: Insurance underwriting results Commercial lines insurance $ 33 $ (62) $ 31 $ 14 Personal lines insurance (36) (49) (93) 16 Excess and surplus lines insurance 11 19 24 35 Life insurance 13 1 21 8 Investments 624 (987) 910 (1,495) Other 21 25 41 18 Total income (loss) before income taxes $ 666 $ (1,053) $ 934 $ (1,404) Identifiable assets: June 30, December 31, Property casualty insurance $ 5,354 $ 5,178 Life insurance 1,542 1,518 Investments 23,535 22,133 Other 921 903 Total $ 31,352 $ 29,732 |
Accounting Policies (Details)
Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
ASU 2018-12 | |||||||||
Reinsurance recoverable | $ 694 | $ 694 | $ 665 | ||||||
Prepaid reinsurance premiums | 95 | 95 | 51 | ||||||
Deferred policy acquisition costs | 1,109 | $ 1,046 | 1,109 | $ 1,046 | $ 1,048 | 1,013 | $ 984 | $ 916 | |
Total assets | 31,352 | 31,352 | 29,732 | ||||||
Life policy and investment contract reserves | 3,038 | 3,038 | 3,015 | ||||||
Deferred income tax | 1,158 | 1,158 | 1,054 | ||||||
Total liabilities | 20,322 | 20,322 | 19,170 | ||||||
Retained earnings | 12,235 | 12,235 | 11,711 | ||||||
Accumulated other comprehensive income | (626) | (626) | (614) | ||||||
Total shareholders' equity | 11,030 | 10,505 | 11,030 | 10,505 | 10,562 | ||||
Total liabilities and shareholders' equity | 31,352 | 31,352 | 29,732 | ||||||
Earned premiums | 1,943 | 1,773 | 3,861 | 3,466 | |||||
Insurance losses and contract holders' benefits | 1,340 | 1,322 | 2,738 | 2,354 | |||||
Underwriting, acquisition and insurance expenses | 579 | 533 | 1,135 | 1,053 | |||||
Deferred | 81 | (265) | 108 | (391) | |||||
Net Income (Loss) | 534 | (818) | 759 | (1,084) | |||||
Change in life policy reserves, reinsurance recoverable and other, net of tax | 23 | 143 | (13) | 298 | |||||
Other comprehensive income (loss) | (99) | (340) | (12) | (774) | |||||
Comprehensive Income (Loss) | $ 435 | $ (1,158) | $ 747 | $ (1,858) | |||||
Basic (in USD per share) | $ 3.40 | $ (5.12) | $ 4.83 | $ (6.77) | |||||
Diluted (in USD per share) | $ 3.38 | $ (5.12) | $ 4.80 | $ (6.77) | |||||
Accounting Standards Update 2018-12 | |||||||||
ASU 2018-12 | |||||||||
Reinsurance recoverable | 665 | $ 287 | |||||||
Prepaid reinsurance premiums | 51 | ||||||||
Deferred policy acquisition costs | 1,013 | 296 | |||||||
Total assets | 29,732 | ||||||||
Life policy and investment contract reserves | 3,015 | ||||||||
Deferred income tax | 1,054 | ||||||||
Total liabilities | 19,170 | ||||||||
Retained earnings | 11,711 | ||||||||
Accumulated other comprehensive income | (614) | ||||||||
Total shareholders' equity | 10,562 | ||||||||
Total liabilities and shareholders' equity | 29,732 | ||||||||
Earned premiums | $ 1,773 | $ 3,466 | |||||||
Insurance losses and contract holders' benefits | 1,322 | 2,354 | |||||||
Underwriting, acquisition and insurance expenses | 533 | 1,053 | |||||||
Deferred | (265) | (391) | |||||||
Net Income (Loss) | (818) | (1,084) | |||||||
Change in life policy reserves, reinsurance recoverable and other, net of tax | 143 | 298 | |||||||
Other comprehensive income (loss) | (340) | (774) | |||||||
Comprehensive Income (Loss) | $ (1,158) | $ (1,858) | |||||||
Basic (in USD per share) | $ (5.12) | $ (6.77) | |||||||
Diluted (in USD per share) | $ (5.12) | $ (6.77) | |||||||
Accounting Standards Update 2018-12 | As originally reported | |||||||||
ASU 2018-12 | |||||||||
Reinsurance recoverable | 640 | 217 | |||||||
Prepaid reinsurance premiums | 79 | ||||||||
Deferred policy acquisition costs | 1,014 | 263 | |||||||
Total assets | 29,736 | ||||||||
Life policy and investment contract reserves | 3,059 | ||||||||
Deferred income tax | 1,045 | ||||||||
Total liabilities | 19,205 | ||||||||
Retained earnings | 11,702 | ||||||||
Accumulated other comprehensive income | (636) | ||||||||
Total shareholders' equity | 10,531 | ||||||||
Total liabilities and shareholders' equity | 29,736 | ||||||||
Earned premiums | $ 1,773 | $ 3,463 | |||||||
Insurance losses and contract holders' benefits | 1,309 | 2,348 | |||||||
Underwriting, acquisition and insurance expenses | 534 | 1,053 | |||||||
Deferred | (263) | (391) | |||||||
Net Income (Loss) | (808) | (1,081) | |||||||
Change in life policy reserves, reinsurance recoverable and other, net of tax | 1 | 1 | |||||||
Other comprehensive income (loss) | (482) | (1,071) | |||||||
Comprehensive Income (Loss) | $ (1,290) | $ (2,152) | |||||||
Basic (in USD per share) | $ (5.06) | $ (6.76) | |||||||
Diluted (in USD per share) | $ (5.06) | $ (6.76) | |||||||
Accounting Standards Update 2018-12 | Effect of Modified Retrospective Application Accounting Standards Update 2018-12 | |||||||||
ASU 2018-12 | |||||||||
Reinsurance recoverable | 25 | ||||||||
Prepaid reinsurance premiums | (28) | ||||||||
Deferred policy acquisition costs | (1) | $ 33 | |||||||
Total assets | (4) | ||||||||
Life policy and investment contract reserves | (44) | ||||||||
Deferred income tax | 9 | ||||||||
Total liabilities | (35) | ||||||||
Retained earnings | 9 | ||||||||
Accumulated other comprehensive income | 22 | ||||||||
Total shareholders' equity | 31 | ||||||||
Total liabilities and shareholders' equity | $ (4) | ||||||||
Earned premiums | $ 0 | $ 3 | |||||||
Insurance losses and contract holders' benefits | 13 | 6 | |||||||
Underwriting, acquisition and insurance expenses | (1) | 0 | |||||||
Deferred | (2) | 0 | |||||||
Net Income (Loss) | (10) | (3) | |||||||
Change in life policy reserves, reinsurance recoverable and other, net of tax | 142 | 297 | |||||||
Other comprehensive income (loss) | 142 | 297 | |||||||
Comprehensive Income (Loss) | $ 132 | $ 294 | |||||||
Basic (in USD per share) | $ (0.06) | $ (0.01) | |||||||
Diluted (in USD per share) | $ (0.06) | $ (0.01) |
Investments - Analysis of Cost
Investments - Analysis of Cost or Amortized Cost, Gross Unrealized Gains and Losses and Fair Value for Investments (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale | ||
Total | $ 13,708 | $ 12,979 |
Gross unrealized gain | 62 | 61 |
Gross unrealized loss | 900 | 908 |
Fixed maturities, at fair value | 12,870 | 12,132 |
Corporate | ||
Debt Securities, Available-for-sale | ||
Total | 7,719 | 7,412 |
Gross unrealized gain | 39 | 37 |
Gross unrealized loss | 608 | 580 |
Fixed maturities, at fair value | 7,150 | 6,869 |
States, municipalities and political subdivisions | ||
Debt Securities, Available-for-sale | ||
Total | 4,951 | 4,901 |
Gross unrealized gain | 23 | 24 |
Gross unrealized loss | 262 | 303 |
Fixed maturities, at fair value | 4,712 | 4,622 |
Government-sponsored enterprises | ||
Debt Securities, Available-for-sale | ||
Total | 582 | 186 |
Gross unrealized gain | 0 | 0 |
Gross unrealized loss | 8 | 3 |
Fixed maturities, at fair value | 574 | 183 |
Commercial mortgage-backed | ||
Debt Securities, Available-for-sale | ||
Total | 227 | 250 |
Gross unrealized gain | 0 | 0 |
Gross unrealized loss | 17 | 16 |
Fixed maturities, at fair value | 210 | 234 |
United States government | ||
Debt Securities, Available-for-sale | ||
Total | 209 | 196 |
Gross unrealized gain | 0 | 0 |
Gross unrealized loss | 5 | 5 |
Fixed maturities, at fair value | 204 | 191 |
Foreign government | ||
Debt Securities, Available-for-sale | ||
Total | 20 | 34 |
Gross unrealized gain | 0 | 0 |
Gross unrealized loss | 0 | 1 |
Fixed maturities, at fair value | $ 20 | $ 33 |
Investments - Fair Values and U
Investments - Fair Values and Unrealized Losses by Investment Category and by Duration of Securities' Continuous Unrealized Loss Position (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Investments, Unrealized Loss Position | ||
Gross unrealized loss | $ 900 | $ 908 |
Corporate | ||
Investments, Unrealized Loss Position | ||
Gross unrealized loss | 608 | 580 |
States, municipalities and political subdivisions | ||
Investments, Unrealized Loss Position | ||
Gross unrealized loss | 262 | 303 |
Government-sponsored enterprises | ||
Investments, Unrealized Loss Position | ||
Gross unrealized loss | 8 | 3 |
Commercial mortgage-backed | ||
Investments, Unrealized Loss Position | ||
Gross unrealized loss | 17 | 16 |
United States government | ||
Investments, Unrealized Loss Position | ||
Gross unrealized loss | 5 | 5 |
Foreign government | ||
Investments, Unrealized Loss Position | ||
Gross unrealized loss | 0 | 1 |
Fixed maturities | ||
Investments, Unrealized Loss Position | ||
Less than 12 months Fair Value | 3,837 | 8,760 |
Less than 12 Months, Unrealized Loss | 113 | 706 |
12 months or more, Fair Value | 6,544 | 800 |
12 months or longer, Unrealized Loss | 787 | 202 |
Total Fair Value | 10,381 | 9,560 |
Gross unrealized loss | 900 | 908 |
Fixed maturities | Corporate | ||
Investments, Unrealized Loss Position | ||
Less than 12 months Fair Value | 2,133 | 5,651 |
Less than 12 Months, Unrealized Loss | 94 | 412 |
12 months or more, Fair Value | 4,347 | 661 |
12 months or longer, Unrealized Loss | 514 | 168 |
Total Fair Value | 6,480 | 6,312 |
Gross unrealized loss | 608 | 580 |
Fixed maturities | States, municipalities and political subdivisions | ||
Investments, Unrealized Loss Position | ||
Less than 12 months Fair Value | 1,042 | 2,600 |
Less than 12 Months, Unrealized Loss | 11 | 274 |
12 months or more, Fair Value | 1,897 | 77 |
12 months or longer, Unrealized Loss | 251 | 29 |
Total Fair Value | 2,939 | 2,677 |
Gross unrealized loss | 262 | 303 |
Fixed maturities | Government-sponsored enterprises | ||
Investments, Unrealized Loss Position | ||
Less than 12 months Fair Value | 502 | 123 |
Less than 12 Months, Unrealized Loss | 6 | 3 |
12 months or more, Fair Value | 32 | 3 |
12 months or longer, Unrealized Loss | 2 | 0 |
Total Fair Value | 534 | 126 |
Gross unrealized loss | 8 | 3 |
Fixed maturities | Commercial mortgage-backed | ||
Investments, Unrealized Loss Position | ||
Less than 12 months Fair Value | 1 | 215 |
Less than 12 Months, Unrealized Loss | 0 | 13 |
12 months or more, Fair Value | 208 | 14 |
12 months or longer, Unrealized Loss | 17 | 3 |
Total Fair Value | 209 | 229 |
Gross unrealized loss | 17 | 16 |
Fixed maturities | United States government | ||
Investments, Unrealized Loss Position | ||
Less than 12 months Fair Value | 144 | 146 |
Less than 12 Months, Unrealized Loss | 2 | 3 |
12 months or more, Fair Value | 60 | 41 |
12 months or longer, Unrealized Loss | 3 | 2 |
Total Fair Value | 204 | 187 |
Gross unrealized loss | 5 | 5 |
Fixed maturities | Foreign government | ||
Investments, Unrealized Loss Position | ||
Less than 12 months Fair Value | 15 | 25 |
Less than 12 Months, Unrealized Loss | 0 | 1 |
12 months or more, Fair Value | 0 | 4 |
12 months or longer, Unrealized Loss | 0 | 0 |
Total Fair Value | 15 | 29 |
Gross unrealized loss | $ 0 | $ 1 |
Investments - Schedule of Contr
Investments - Schedule of Contractual Maturities of Investments (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Amortized cost | ||
Due in one year or less | $ 772 | |
Due after one year through five years | 4,348 | |
Due after five years through ten years | 3,508 | |
Due after ten years | 5,080 | |
Total | 13,708 | $ 12,979 |
Fair value | ||
Due in one year or less | 766 | |
Due after one year through five years | 4,179 | |
Due after five years through ten years | 3,312 | |
Due after ten years | 4,613 | |
Total | $ 12,870 | $ 12,132 |
% of fair value | ||
Due in one year or less | 6% | |
Due after one year through five years | 32.50% | |
Due after five years through ten years | 25.70% | |
Due after ten years | 35.80% | |
Total | 100% |
Investments - Realized Investme
Investments - Realized Investment Gains and Losses and Change in Unrealized Investment Gains and Losses and Other Items (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Investment income: | ||||
Interest | $ 147 | $ 124 | $ 287 | $ 247 |
Dividends | 70 | 72 | 136 | 137 |
Other | 6 | 2 | 13 | 3 |
Total | 223 | 198 | 436 | 387 |
Less investment expenses | 3 | 3 | 6 | 7 |
Total | 220 | 195 | 430 | 380 |
Investment gains and losses, net | ||||
Other | (21) | 16 | (20) | 22 |
Total | 434 | (1,154) | 540 | (1,820) |
Equity securities | ||||
Investment gains and losses, net | ||||
Investment gains and losses on securities sold, net | 0 | 5 | (4) | 37 |
Unrealized gains and losses on securities still held, net | 459 | (1,175) | 568 | (1,882) |
Total | 459 | (1,170) | 564 | (1,845) |
Fixed maturities | ||||
Investment gains and losses, net | ||||
Gross realized gains | 0 | 2 | 1 | 6 |
Gross realized losses | 0 | (2) | (1) | (3) |
Writedown of Impaired Securities Intended to be Sold | (4) | 0 | (4) | 0 |
Total | $ (4) | $ 0 | $ (4) | $ 3 |
Investments - Additional Inform
Investments - Additional Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 USD ($) security | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) security | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) security | |
Gain (Loss) on Securities | |||||
Equity Securities at Fair Value | $ 10,502 | $ 10,502 | $ 9,841 | ||
Largest Single Common Stock Holding | $ 892 | $ 892 | $ 597 | ||
Largest equity holdings to total equity portfolio | 8.80% | 8.80% | 6.30% | ||
Largest equity holdings to total portfolio | 3.80% | 3.80% | 2.70% | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss | $ 4 | $ 4 | $ 1 | ||
Fixed maturities | |||||
Gain (Loss) on Securities | |||||
Number Of Securities Continuous Unrealized Loss Position | security | 3,452 | 3,452 | 3,272 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss 3 | $ 900 | $ 900 | $ 908 | ||
Number Of Securities Continuous Unrealized Loss Position and Below 70 Percent of Amortized Cost | 23 | 23 | 49 | ||
Fixed maturity investments, Percentage of amortized costs | 70% | 70% | |||
Change in allowance for credit losses, net | $ 3 | $ 1 | $ 3 | $ 1 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Hierarchy for Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | $ 12,870 | $ 12,132 |
Fair value of asset | 24,271 | 22,845 |
Separate accounts | 911 | 892 |
Top Hat savings plan mutual funds and common equity (included in Other assets) | 62 | 57 |
Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 7,150 | 6,869 |
States, municipalities and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 4,712 | 4,622 |
Government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 574 | 183 |
Commercial mortgage-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 210 | 234 |
United States government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 204 | 191 |
Foreign government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 20 | 33 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 204 | 191 |
Fair value of asset | 10,390 | 9,702 |
Top Hat savings plan mutual funds and common equity (included in Other assets) | 62 | 57 |
Level 1 | Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 0 | 0 |
Level 1 | States, municipalities and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 0 | 0 |
Level 1 | Government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 0 | 0 |
Level 1 | Commercial mortgage-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 0 | 0 |
Level 1 | United States government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 204 | 191 |
Level 1 | Foreign government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 12,666 | 11,941 |
Fair value of asset | 13,881 | 13,143 |
Top Hat savings plan mutual funds and common equity (included in Other assets) | 0 | 0 |
Level 2 | Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 7,150 | 6,869 |
Level 2 | States, municipalities and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 4,712 | 4,622 |
Level 2 | Government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 574 | 183 |
Level 2 | Commercial mortgage-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 210 | 234 |
Level 2 | United States government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 0 | 0 |
Level 2 | Foreign government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 20 | 33 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 0 | 0 |
Fair value of asset | 0 | 0 |
Top Hat savings plan mutual funds and common equity (included in Other assets) | 0 | 0 |
Level 3 | Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 0 | 0 |
Level 3 | States, municipalities and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 0 | 0 |
Level 3 | Government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 0 | 0 |
Level 3 | Commercial mortgage-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 0 | 0 |
Level 3 | United States government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 0 | 0 |
Level 3 | Foreign government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 0 | 0 |
Equity securities | Common equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of asset | 10,124 | 9,454 |
Equity securities | Nonredeemable preferred equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of asset | 378 | 387 |
Equity securities | Level 1 | Common equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of asset | 10,124 | 9,454 |
Equity securities | Level 1 | Nonredeemable preferred equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of asset | 0 | 0 |
Equity securities | Level 2 | Common equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of asset | 0 | 0 |
Equity securities | Level 2 | Nonredeemable preferred equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of asset | 378 | 387 |
Equity securities | Level 3 | Common equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of asset | 0 | 0 |
Equity securities | Level 3 | Nonredeemable preferred equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of asset | 0 | 0 |
Separate accounts taxable fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Separate accounts | 837 | 815 |
Separate accounts taxable fixed maturities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Separate accounts | 0 | 0 |
Separate accounts taxable fixed maturities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Separate accounts | 837 | 815 |
Separate accounts taxable fixed maturities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Separate accounts | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and Cash Equivalents, Fair Value Disclosure | $ 748 | $ 1,264 |
Finance receivable | 98 | 92 |
Life policy and investment contract reserves | 3,038 | 3,015 |
Life Policy Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Finance receivable | 31 | 31 |
Investment contract reserves: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Life policy and investment contract reserves | 1,507 | 1,552 |
Investment contract reserves: | Deferred Fixed Annuity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Life policy and investment contract reserves | 696 | 734 |
Investment contract reserves: | Structured Settlement Annuity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Life policy and investment contract reserves | $ 126 | $ 129 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Book Value and Principal Amounts of Long-Term Debt (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Book value | $ 789 | $ 789 |
Principal amount of debt | $ 793 | $ 793 |
Senior Debentures 6.900% Due 2028 | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.90% | 6.90% |
Debt issuance year | 1998 | 1998 |
Book value | $ 27 | $ 27 |
Principal amount of debt | $ 28 | $ 28 |
Senior Debentures 6.920% Due 2028 | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.92% | 6.92% |
Debt issuance year | 2005 | 2005 |
Book value | $ 391 | $ 391 |
Principal amount of debt | $ 391 | $ 391 |
Senior Notes 6.125% Due 2034 | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.125% | 6.125% |
Debt issuance year | 2004 | 2004 |
Book value | $ 371 | $ 371 |
Principal amount of debt | $ 374 | $ 374 |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Values of Note Payable and Long-Term Debt (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of note payable | $ 25 | $ 50 |
Total | $ 869 | $ 885 |
Senior Debentures 6.900 % Due 2028 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Interest rate | 6.90% | 6.90% |
Fair value of senior debt | $ 29 | $ 29 |
Senior Debentures 6.920 % Due 2028 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Interest rate | 6.92% | 6.92% |
Fair value of senior debt | $ 419 | $ 418 |
Senior Notes 6.125 % Due 2034 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Interest rate | 6.125% | 6.125% |
Fair value of senior debt | $ 396 | $ 388 |
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 | Senior Debentures 6.900 % Due 2028 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of senior debt | 0 | 0 |
Level 1 | Senior Debentures 6.920 % Due 2028 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of senior debt | 0 | 0 |
Level 1 | Senior Notes 6.125 % 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 | 25 | 50 |
Total | 869 | 885 |
Level 2 | Senior Debentures 6.900 % Due 2028 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of senior debt | 29 | 29 |
Level 2 | Senior Debentures 6.920 % Due 2028 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of senior debt | 419 | 418 |
Level 2 | Senior Notes 6.125 % Due 2034 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of senior debt | 396 | 388 |
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 | Senior Debentures 6.900 % Due 2028 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of senior debt | 0 | 0 |
Level 3 | Senior Debentures 6.920 % Due 2028 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of senior debt | 0 | 0 |
Level 3 | Senior Notes 6.125 % Due 2034 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of senior debt | $ 0 | $ 0 |
Fair Value Measurements - Fai_3
Fair Value Measurements - Fair Value of Life Policy Loans, Deferred Annuities, and Structured Settlements (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of life policy loans | $ 37 | $ 37 |
Liabilities Related to Investment Contracts, Fair Value Disclosure | 740 | 764 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of life policy loans | 0 | 0 |
Liabilities Related to Investment Contracts, Fair Value Disclosure | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of life policy loans | 0 | 0 |
Liabilities Related to Investment Contracts, Fair Value Disclosure | 141 | 143 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of life policy loans | 37 | 37 |
Liabilities Related to Investment Contracts, Fair Value Disclosure | 599 | 621 |
Deferred annuities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities Related to Investment Contracts, Fair Value Disclosure | 599 | 621 |
Deferred annuities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities Related to Investment Contracts, Fair Value Disclosure | 0 | 0 |
Deferred annuities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities Related to Investment Contracts, Fair Value Disclosure | 0 | 0 |
Deferred annuities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities Related to Investment Contracts, Fair Value Disclosure | 599 | 621 |
Structured settlements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities Related to Investment Contracts, Fair Value Disclosure | 141 | 143 |
Structured settlements | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities Related to Investment Contracts, Fair Value Disclosure | 0 | 0 |
Structured settlements | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities Related to Investment Contracts, Fair Value Disclosure | 141 | 143 |
Structured settlements | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities Related to Investment Contracts, Fair Value Disclosure | $ 0 | $ 0 |
Property Casualty Loss and Lo_3
Property Casualty Loss and Loss Expenses - Consolidated Property Casualty Loss and Loss Expense Reserves (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Summary of Consolidated Property Casualty Loss and Loss Expense Reserves [Roll Forward] | ||||
Gross loss and loss expense reserves, beginning of period | $ 8,626 | $ 7,287 | $ 8,336 | $ 7,229 |
Less reinsurance recoverable | 424 | 319 | 405 | 327 |
Net loss and loss expense reserves, beginning of period | 8,202 | 6,968 | 7,931 | 6,902 |
Current accident year | 1,363 | 1,299 | 2,739 | 2,296 |
Prior accident years | (101) | (59) | (160) | (100) |
Total incurred | 1,262 | 1,240 | 2,579 | 2,196 |
Current accident year | 502 | 368 | 689 | 537 |
Prior accident years | 579 | 524 | 1,438 | 1,245 |
Total paid | 1,081 | 892 | 2,127 | 1,782 |
Net loss and loss expense reserves, end of period | 8,383 | 7,316 | 8,383 | 7,316 |
Plus reinsurance recoverable | 424 | 287 | 424 | 287 |
Gross loss and loss expense reserves, end of period | $ 8,807 | $ 7,603 | $ 8,807 | $ 7,603 |
Property Casualty Loss and Lo_4
Property Casualty Loss and Loss Expenses - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters | ||||||||
Reserve for loss and loss expenses | $ 8,807 | $ 7,603 | $ 8,807 | $ 7,603 | $ 8,626 | $ 8,336 | $ 7,287 | $ 7,229 |
Prior accident years | (101) | (59) | (160) | (100) | ||||
Life and Health Loss Reserves | ||||||||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters | ||||||||
Reserve for loss and loss expenses | 66 | 66 | ||||||
Commercial Insurance | ||||||||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters | ||||||||
Prior accident years | (59) | (29) | (91) | (47) | ||||
Commercial Insurance | Commercial Property Line | ||||||||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters | ||||||||
Prior accident years | (7) | (25) | (12) | |||||
Commercial Insurance | Workers' Compensation Line | ||||||||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters | ||||||||
Prior accident years | (11) | (18) | (26) | (27) | ||||
Commercial Insurance | Commercial Casualty Line | ||||||||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters | ||||||||
Prior accident years | (34) | (36) | ||||||
Personal Insurance | ||||||||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters | ||||||||
Prior accident years | (15) | (14) | (46) | (48) | ||||
Personal Insurance | Homeowner | ||||||||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters | ||||||||
Prior accident years | (16) | (35) | (46) | |||||
Personal Insurance | Personal Auto | ||||||||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters | ||||||||
Prior accident years | (12) | |||||||
Excess and Surplus Lines Insurance | ||||||||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters | ||||||||
Prior accident years | $ (5) | $ (1) | $ (14) | $ (6) |
Reserves in Addition to Account
Reserves in Addition to Account Balance, Based on Expected No-Lapse Guarantee Benefits and Expected Policy Assessments (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | $ 3,038 | $ 3,015 |
Life policy reserves: | ||
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | 1,531 | 1,463 |
Investment contract reserves: | ||
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | 1,507 | 1,552 |
Term Life Insurance | Life policy reserves: | ||
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | 1,015 | 961 |
Whole Life Insurance | Life policy reserves: | ||
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | 421 | 408 |
Long-Duration Insurance, Other | Life policy reserves: | ||
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | 95 | 94 |
Long-Duration Insurance, Other | Investment contract reserves: | ||
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | 107 | 111 |
Deferred Fixed Annuity | Investment contract reserves: | ||
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | 696 | 734 |
Universal life | Investment contract reserves: | ||
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | 578 | 578 |
Structured Settlement Annuity | Investment contract reserves: | ||
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | $ 126 | $ 129 |
Transition Date Adoption Impact
Transition Date Adoption Impacts (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2020 |
ASU 2018-12 Adoption Impacts to the Life Reinsurance Recoverable Assets | |||
Life policy and investment contract reserves | $ 694 | $ 665 | |
Accounting Standards Update 2018-12 | |||
ASU 2018-12 Adoption Impacts to the life policy and investment contract reserves | |||
Liability for Future Policy Benefit, Expected Net Premium, Original Discount Rate, before Cash Flow and Reinsurance | $ 3,560 | ||
ASU 2018-12 Adoption Impacts to the Life Reinsurance Recoverable Assets | |||
Life policy and investment contract reserves | 665 | 287 | |
As originally reported | Accounting Standards Update 2018-12 | |||
ASU 2018-12 Adoption Impacts to the life policy and investment contract reserves | |||
Liability for Future Policy Benefit, Expected Net Premium, Original Discount Rate, before Cash Flow and Reinsurance | 2,915 | ||
ASU 2018-12 Adoption Impacts to the Life Reinsurance Recoverable Assets | |||
Life policy and investment contract reserves | 640 | 217 | |
Effect of Modified Retrospective Application Accounting Standards Update 2018-12 | Accounting Standards Update 2018-12 | |||
ASU 2018-12 Adoption Impacts to the life policy and investment contract reserves | |||
Removal of shadow adjustments | 13 | ||
Net premiums in excess of gross premiums | 15 | ||
Remeasurement at market value discount rates | 617 | ||
ASU 2018-12 Adoption Impacts to the Life Reinsurance Recoverable Assets | |||
Life policy and investment contract reserves | $ 25 | ||
Remeasurement at market value discount rates | 47 | ||
Other adjustments | 23 | ||
Term Life Insurance | Accounting Standards Update 2018-12 | |||
ASU 2018-12 Adoption Impacts to the life policy and investment contract reserves | |||
Liability for Future Policy Benefit, Expected Net Premium, Original Discount Rate, before Cash Flow and Reinsurance | 1,287 | ||
ASU 2018-12 Adoption Impacts to the Life Reinsurance Recoverable Assets | |||
Life policy and investment contract reserves | 162 | ||
Term Life Insurance | As originally reported | Accounting Standards Update 2018-12 | |||
ASU 2018-12 Adoption Impacts to the life policy and investment contract reserves | |||
Liability for Future Policy Benefit, Expected Net Premium, Original Discount Rate, before Cash Flow and Reinsurance | 901 | ||
ASU 2018-12 Adoption Impacts to the Life Reinsurance Recoverable Assets | |||
Life policy and investment contract reserves | 113 | ||
Term Life Insurance | Effect of Modified Retrospective Application Accounting Standards Update 2018-12 | Accounting Standards Update 2018-12 | |||
ASU 2018-12 Adoption Impacts to the life policy and investment contract reserves | |||
Removal of shadow adjustments | 0 | ||
Net premiums in excess of gross premiums | 14 | ||
Remeasurement at market value discount rates | 372 | ||
ASU 2018-12 Adoption Impacts to the Life Reinsurance Recoverable Assets | |||
Remeasurement at market value discount rates | 29 | ||
Other adjustments | 20 | ||
Whole Life Insurance | Accounting Standards Update 2018-12 | |||
ASU 2018-12 Adoption Impacts to the life policy and investment contract reserves | |||
Liability for Future Policy Benefit, Expected Net Premium, Original Discount Rate, before Cash Flow and Reinsurance | 609 | ||
ASU 2018-12 Adoption Impacts to the Life Reinsurance Recoverable Assets | |||
Life policy and investment contract reserves | 45 | ||
Whole Life Insurance | As originally reported | Accounting Standards Update 2018-12 | |||
ASU 2018-12 Adoption Impacts to the life policy and investment contract reserves | |||
Liability for Future Policy Benefit, Expected Net Premium, Original Discount Rate, before Cash Flow and Reinsurance | 363 | ||
ASU 2018-12 Adoption Impacts to the Life Reinsurance Recoverable Assets | |||
Life policy and investment contract reserves | 26 | ||
Whole Life Insurance | Effect of Modified Retrospective Application Accounting Standards Update 2018-12 | Accounting Standards Update 2018-12 | |||
ASU 2018-12 Adoption Impacts to the life policy and investment contract reserves | |||
Removal of shadow adjustments | 0 | ||
Net premiums in excess of gross premiums | 1 | ||
Remeasurement at market value discount rates | 245 | ||
ASU 2018-12 Adoption Impacts to the Life Reinsurance Recoverable Assets | |||
Remeasurement at market value discount rates | 18 | ||
Other adjustments | 1 | ||
Deferred Fixed Annuity | Accounting Standards Update 2018-12 | |||
ASU 2018-12 Adoption Impacts to the life policy and investment contract reserves | |||
Liability for Future Policy Benefit, Expected Net Premium, Original Discount Rate, before Cash Flow and Reinsurance | 761 | ||
ASU 2018-12 Adoption Impacts to the Life Reinsurance Recoverable Assets | |||
Life policy and investment contract reserves | 0 | ||
Deferred Fixed Annuity | As originally reported | Accounting Standards Update 2018-12 | |||
ASU 2018-12 Adoption Impacts to the life policy and investment contract reserves | |||
Liability for Future Policy Benefit, Expected Net Premium, Original Discount Rate, before Cash Flow and Reinsurance | 761 | ||
ASU 2018-12 Adoption Impacts to the Life Reinsurance Recoverable Assets | |||
Life policy and investment contract reserves | 0 | ||
Deferred Fixed Annuity | Effect of Modified Retrospective Application Accounting Standards Update 2018-12 | Accounting Standards Update 2018-12 | |||
ASU 2018-12 Adoption Impacts to the life policy and investment contract reserves | |||
Removal of shadow adjustments | 0 | ||
Net premiums in excess of gross premiums | 0 | ||
Remeasurement at market value discount rates | 0 | ||
ASU 2018-12 Adoption Impacts to the Life Reinsurance Recoverable Assets | |||
Remeasurement at market value discount rates | 0 | ||
Other adjustments | 0 | ||
Universal life | Accounting Standards Update 2018-12 | |||
ASU 2018-12 Adoption Impacts to the life policy and investment contract reserves | |||
Liability for Future Policy Benefit, Expected Net Premium, Original Discount Rate, before Cash Flow and Reinsurance | 567 | ||
ASU 2018-12 Adoption Impacts to the Life Reinsurance Recoverable Assets | |||
Life policy and investment contract reserves | 2 | ||
Universal life | As originally reported | Accounting Standards Update 2018-12 | |||
ASU 2018-12 Adoption Impacts to the life policy and investment contract reserves | |||
Liability for Future Policy Benefit, Expected Net Premium, Original Discount Rate, before Cash Flow and Reinsurance | 567 | ||
ASU 2018-12 Adoption Impacts to the Life Reinsurance Recoverable Assets | |||
Life policy and investment contract reserves | 0 | ||
Universal life | Effect of Modified Retrospective Application Accounting Standards Update 2018-12 | Accounting Standards Update 2018-12 | |||
ASU 2018-12 Adoption Impacts to the life policy and investment contract reserves | |||
Removal of shadow adjustments | 0 | ||
Net premiums in excess of gross premiums | 0 | ||
Remeasurement at market value discount rates | 0 | ||
ASU 2018-12 Adoption Impacts to the Life Reinsurance Recoverable Assets | |||
Remeasurement at market value discount rates | 0 | ||
Other adjustments | 2 | ||
Long-Duration Insurance, Other | Accounting Standards Update 2018-12 | |||
ASU 2018-12 Adoption Impacts to the life policy and investment contract reserves | |||
Liability for Future Policy Benefit, Expected Net Premium, Original Discount Rate, before Cash Flow and Reinsurance | 336 | ||
ASU 2018-12 Adoption Impacts to the Life Reinsurance Recoverable Assets | |||
Life policy and investment contract reserves | 78 | ||
Long-Duration Insurance, Other | As originally reported | Accounting Standards Update 2018-12 | |||
ASU 2018-12 Adoption Impacts to the life policy and investment contract reserves | |||
Liability for Future Policy Benefit, Expected Net Premium, Original Discount Rate, before Cash Flow and Reinsurance | 323 | ||
ASU 2018-12 Adoption Impacts to the Life Reinsurance Recoverable Assets | |||
Life policy and investment contract reserves | 78 | ||
Long-Duration Insurance, Other | Effect of Modified Retrospective Application Accounting Standards Update 2018-12 | Accounting Standards Update 2018-12 | |||
ASU 2018-12 Adoption Impacts to the life policy and investment contract reserves | |||
Removal of shadow adjustments | 13 | ||
Net premiums in excess of gross premiums | 0 | ||
Remeasurement at market value discount rates | 0 | ||
ASU 2018-12 Adoption Impacts to the Life Reinsurance Recoverable Assets | |||
Remeasurement at market value discount rates | 0 | ||
Other adjustments | $ 0 |
Liability for Future Policy Ben
Liability for Future Policy Benefit (Details) - Life policy reserves: - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Term Life Insurance | ||||||||
Present value of expected net premiums: | ||||||||
Balance, beginning of period | $ 1,699 | $ 1,686 | $ 1,643 | $ 1,801 | ||||
Beginning balance at original discount rate | $ 1,715 | $ 1,708 | $ 1,542 | $ 1,503 | ||||
Effect of changes in cash flow assumptions | (5) | (5) | 149 | 145 | ||||
Effect of actual variances from expected experience | (9) | (12) | (3) | 8 | ||||
Adjusted beginning of period balance | 1,701 | 1,688 | 1,691 | 1,656 | ||||
Issuances | 40 | 45 | 78 | 104 | ||||
Interest accrual | 17 | 17 | 35 | 32 | ||||
Net premiums collected | (46) | (46) | (92) | (88) | ||||
Ending balance at original discount rate | 1,712 | 1,704 | 1,712 | 1,704 | ||||
Effect of changes in discount rate assumptions | (48) | 19 | (48) | 19 | ||||
Balance, end of period | 1,664 | 1,723 | 1,664 | 1,723 | ||||
Present value of expected future policy benefits: | ||||||||
Balance, beginning of period | 2,691 | 2,745 | 2,584 | 2,993 | ||||
Beginning balance at original discount rate | 2,712 | 2,692 | 2,463 | 2,425 | ||||
Effect of changes in cash flow assumptions | 5 | 5 | 166 | 162 | ||||
Effect of actual variances from expected experience | (11) | (13) | (1) | 17 | ||||
Adjusted beginning of period balance | 2,706 | 2,628 | 2,684 | 2,604 | ||||
Issuances | 40 | 45 | 78 | 104 | ||||
Interest accrual | 30 | 28 | 60 | 55 | ||||
Benefits paid | (39) | (38) | (85) | (100) | ||||
Ending balance at original discount rate | 2,737 | 2,663 | 2,737 | 2,663 | ||||
Effect of changes in discount rate assumptions | (75) | 39 | (75) | 39 | ||||
Balance, end of period | 2,662 | 2,702 | 2,662 | 2,702 | ||||
Net liability for future policy benefits: | ||||||||
Present value of expected future policy benefits less expected net premiums | 998 | 979 | 998 | 979 | ||||
Impact of flooring at cohort level | 17 | 20 | 17 | 20 | ||||
Net life policy reserves | 1,015 | 999 | 1,015 | 999 | ||||
Less reinsurance recoverable at original discount rate | (100) | (104) | (100) | (104) | ||||
Less effect of discount rate assumption changes on reinsurance recoverable | (8) | (13) | (8) | (13) | ||||
Net life policy reserves, after reinsurance recoverable | $ 907 | $ 882 | $ 907 | $ 882 | ||||
Weighted-average duration of the net life policy reserves in years | 12 years | 12 years | 12 years | 12 years | ||||
Whole Life Insurance | ||||||||
Present value of expected net premiums: | ||||||||
Balance, beginning of period | $ 217 | $ 226 | $ 208 | $ 241 | ||||
Beginning balance at original discount rate | 220 | 217 | 207 | 201 | ||||
Effect of changes in cash flow assumptions | (6) | (6) | (1) | (1) | ||||
Effect of actual variances from expected experience | 0 | 1 | 0 | 0 | ||||
Adjusted beginning of period balance | 214 | 206 | 212 | 200 | ||||
Issuances | 10 | 8 | 17 | 19 | ||||
Interest accrual | 2 | 2 | 4 | 4 | ||||
Net premiums collected | (7) | (7) | (14) | (14) | ||||
Ending balance at original discount rate | 219 | 209 | 219 | 209 | ||||
Effect of changes in discount rate assumptions | (7) | 1 | (7) | 1 | ||||
Balance, end of period | 212 | 210 | 212 | 210 | ||||
Present value of expected future policy benefits: | ||||||||
Balance, beginning of period | 644 | 736 | 614 | 826 | ||||
Beginning balance at original discount rate | 614 | 607 | 586 | 577 | ||||
Effect of changes in cash flow assumptions | (10) | (10) | (3) | (3) | ||||
Effect of actual variances from expected experience | $ 0 | $ 1 | $ 0 | $ 0 | ||||
Adjusted beginning of period balance | 604 | 583 | 598 | 574 | ||||
Issuances | 11 | 7 | 17 | 18 | ||||
Interest accrual | 7 | 8 | 15 | 15 | ||||
Benefits paid | (7) | (8) | (15) | (17) | ||||
Ending balance at original discount rate | 615 | 590 | 615 | 590 | ||||
Effect of changes in discount rate assumptions | 18 | 56 | 18 | 56 | ||||
Balance, end of period | 633 | 646 | 633 | 646 | ||||
Net liability for future policy benefits: | ||||||||
Present value of expected future policy benefits less expected net premiums | 421 | 436 | 421 | 436 | ||||
Impact of flooring at cohort level | 0 | 2 | 0 | 2 | ||||
Net life policy reserves | 421 | 438 | 421 | 438 | ||||
Less reinsurance recoverable at original discount rate | (25) | (25) | (25) | (25) | ||||
Less effect of discount rate assumption changes on reinsurance recoverable | (5) | (7) | (5) | (7) | ||||
Net life policy reserves, after reinsurance recoverable | $ 391 | $ 406 | $ 391 | $ 406 | ||||
Weighted-average duration of the net life policy reserves in years | 16 years | 17 years | 16 years | 17 years |
Life Policy and Investment Co_3
Life Policy and Investment Contract Reserves (Narrative) (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Life policy reserves: | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Discount Rate Assumption Changes included in Impact of flooring at Cohort Level | $ 3,000,000 | $ 10,000,000 |
Life Insurance Segment | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Liability for Future Policy Benefit, Adverse Development, Expense | $ 0 |
Undiscounted and Discounted Fut
Undiscounted and Discounted Future Benefit Payments and Gross Premiums (Details) - Life policy reserves: - USD ($) $ in Millions | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Term Life Insurance | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Undiscounted expected future benefit payments | $ 4,738 | $ 4,589 | ||||
Undiscounted expected future gross premiums | 4,345 | 4,378 | ||||
Discounted expected future benefit payments | 2,662 | $ 2,691 | $ 2,584 | 2,702 | $ 2,745 | $ 2,993 |
Discounted expected future gross premiums | 2,583 | 2,690 | ||||
Whole Life Insurance | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Undiscounted expected future benefit payments | 1,610 | 1,517 | ||||
Undiscounted expected future gross premiums | 641 | 583 | ||||
Discounted expected future benefit payments | 633 | $ 644 | $ 614 | 646 | $ 736 | $ 826 |
Discounted expected future gross premiums | $ 390 | $ 372 |
Revenue and Interest Recognized
Revenue and Interest Recognized in Income (Details) - Life policy reserves: - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Gross premiums | $ 86 | $ 83 | $ 171 | $ 164 |
Interest accretion | 17 | 17 | 35 | 34 |
Term Life Insurance | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Gross premiums | 73 | 71 | 146 | 140 |
Interest accretion | 12 | 11 | 24 | 23 |
Whole Life Insurance | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Gross premiums | 13 | 12 | 25 | 24 |
Interest accretion | $ 5 | $ 6 | $ 11 | $ 11 |
Weighted Average Interest Rate
Weighted Average Interest Rate for Life Policy Products (Details) - Life policy reserves: | Jun. 30, 2023 | Jun. 30, 2022 |
Term Life Insurance | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest accretion rate | 5.29% | 5.16% |
Current discount rate | 5.11% | 4.20% |
Whole Life Insurance | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest accretion rate | 5.93% | 5.98% |
Current discount rate | 5.22% | 4.74% |
Changes in Policyholders' Accou
Changes in Policyholders' Account Balances (Details) - Investment contract reserves: - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Deferred Fixed Annuity | ||||
Policyholder Account Balance [Roll Forward] | ||||
Balance, beginning of period | $ 711 | $ 756 | $ 734 | $ 763 |
Premiums received | 15 | 5 | 25 | 11 |
Policy charges | 0 | 0 | 0 | 0 |
Surrenders and withdrawals | (32) | (8) | (68) | (20) |
Benefit payments | (3) | (4) | (6) | (10) |
Interest credited | 5 | 6 | 11 | 11 |
Balance, end of period | $ 696 | $ 755 | $ 696 | $ 755 |
Weighted average crediting rate | 3.41% | 3.06% | 3.41% | 3.06% |
Net amount at risk | $ 0 | $ 0 | $ 0 | $ 0 |
Cash surrender value | 691 | 750 | 691 | 750 |
Universal life | ||||
Policyholder Account Balance [Roll Forward] | ||||
Balance, beginning of period | 458 | 456 | 457 | 454 |
Premiums received | 9 | 10 | 20 | 21 |
Policy charges | (10) | (9) | (20) | (19) |
Surrenders and withdrawals | (4) | (2) | (7) | (5) |
Benefit payments | (2) | (2) | (4) | (3) |
Interest credited | 5 | 4 | 10 | 9 |
Balance, end of period | $ 456 | $ 457 | $ 456 | $ 457 |
Weighted average crediting rate | 4.29% | 4.25% | 4.29% | 4.25% |
Net amount at risk | $ 4,030 | $ 4,141 | $ 4,030 | $ 4,141 |
Cash surrender value | $ 423 | $ 422 | $ 423 | $ 422 |
Account Values by Range of Guar
Account Values by Range of Guaranteed Minimum Crediting Rates (Details) - Investment contract reserves: - USD ($) $ in Millions | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 |
Deferred Fixed Annuity | |||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||||
Balance, end of period | $ 696 | $ 711 | $ 734 | $ 755 | $ 756 |
Deferred Fixed Annuity | Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | |||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||||
Balance, end of period | 55 | 526 | |||
Deferred Fixed Annuity | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0001 to 0050 | |||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||||
Balance, end of period | 400 | 0 | |||
Deferred Fixed Annuity | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0051 to 0150 | |||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||||
Balance, end of period | 17 | 173 | |||
Deferred Fixed Annuity | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0151 and Greater | |||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||||
Balance, end of period | 224 | 56 | |||
Deferred Fixed Annuity | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0200 to 0299 | |||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||||
Balance, end of period | 646 | 704 | |||
Deferred Fixed Annuity | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0200 to 0299 | Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | |||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||||
Balance, end of period | 5 | 475 | |||
Deferred Fixed Annuity | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0200 to 0299 | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0001 to 0050 | |||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||||
Balance, end of period | 400 | 0 | |||
Deferred Fixed Annuity | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0200 to 0299 | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0051 to 0150 | |||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||||
Balance, end of period | 17 | 173 | |||
Deferred Fixed Annuity | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0200 to 0299 | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0151 and Greater | |||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||||
Balance, end of period | 224 | 56 | |||
Deferred Fixed Annuity | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0300 to 0399 | |||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||||
Balance, end of period | 50 | 51 | |||
Deferred Fixed Annuity | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0300 to 0399 | Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | |||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||||
Balance, end of period | 50 | 51 | |||
Deferred Fixed Annuity | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0300 to 0399 | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0001 to 0050 | |||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||||
Balance, end of period | 0 | 0 | |||
Deferred Fixed Annuity | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0300 to 0399 | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0051 to 0150 | |||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||||
Balance, end of period | 0 | 0 | |||
Deferred Fixed Annuity | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0300 to 0399 | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0151 and Greater | |||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||||
Balance, end of period | 0 | 0 | |||
Universal life | |||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||||
Balance, end of period | 456 | $ 458 | $ 457 | 457 | $ 456 |
Universal life | Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | |||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||||
Balance, end of period | 397 | 403 | |||
Universal life | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0001 to 0050 | |||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||||
Balance, end of period | 0 | 45 | |||
Universal life | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0051 to 0150 | |||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||||
Balance, end of period | 56 | 7 | |||
Universal life | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0151 and Greater | |||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||||
Balance, end of period | 3 | 2 | |||
Universal life | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0200 to 0299 | |||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||||
Balance, end of period | 120 | 114 | |||
Universal life | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0200 to 0299 | Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | |||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||||
Balance, end of period | 61 | 60 | |||
Universal life | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0200 to 0299 | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0001 to 0050 | |||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||||
Balance, end of period | 0 | 45 | |||
Universal life | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0200 to 0299 | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0051 to 0150 | |||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||||
Balance, end of period | 56 | 7 | |||
Universal life | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0200 to 0299 | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0151 and Greater | |||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||||
Balance, end of period | 3 | 2 | |||
Universal life | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0300 to 0399 | |||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||||
Balance, end of period | 53 | 52 | |||
Universal life | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0300 to 0399 | Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | |||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||||
Balance, end of period | 53 | 52 | |||
Universal life | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0300 to 0399 | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0001 to 0050 | |||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||||
Balance, end of period | 0 | 0 | |||
Universal life | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0300 to 0399 | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0051 to 0150 | |||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||||
Balance, end of period | 0 | 0 | |||
Universal life | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0300 to 0399 | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0151 and Greater | |||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||||
Balance, end of period | 0 | 0 | |||
Universal life | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0400 and Greater | |||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||||
Balance, end of period | 283 | 291 | |||
Universal life | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0400 and Greater | Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | |||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||||
Balance, end of period | 283 | 291 | |||
Universal life | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0400 and Greater | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0001 to 0050 | |||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||||
Balance, end of period | 0 | 0 | |||
Universal life | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0400 and Greater | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0051 to 0150 | |||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||||
Balance, end of period | 0 | 0 | |||
Universal life | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0400 and Greater | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0151 and Greater | |||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||||
Balance, end of period | $ 0 | $ 0 |
Other Additional Liability Roll
Other Additional Liability Rollforward (Details) - Universal life - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Additional Liability, Long-Duration Insurance [Roll Forward] | ||||||||
Balance, beginning of period | $ 125 | $ 127 | $ 121 | $ 133 | ||||
Balance, beginning of period before shadow reserve adjustments | $ 127 | $ 123 | $ 127 | $ 131 | ||||
Effect of changes in cash flow assumptions | (5) | (5) | (2) | (2) | ||||
Effect of actual variances from expected experience | 0 | (1) | 2 | 5 | ||||
Adjusted beginning of period balance | 122 | 117 | 127 | 134 | ||||
Interest accrual | 1 | 1 | 2 | 2 | ||||
Excess death benefits | (2) | (4) | (2) | (12) | ||||
Attributed assessments | 3 | 3 | 6 | 6 | ||||
Effect of changes in interest rate assumptions | 0 | (4) | 1 | (7) | ||||
Balance, end of period before shadow reserve adjustments | 124 | 123 | 124 | 123 | ||||
Shadow reserve adjustments | (2) | (1) | (2) | (1) | ||||
Balance, end of period | 122 | 122 | 122 | 122 | $ 125 | $ 121 | $ 127 | $ 133 |
Less reinsurance recoverable, end of period | 7 | 6 | 7 | 6 | ||||
Net other additional liability, after reinsurance recoverable | $ 129 | $ 128 | $ 129 | $ 128 | ||||
Weighted-average duration of the other additional liability in years | 32 years | 35 years | 32 years | 35 years |
Separate Account Balances and C
Separate Account Balances and Changes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Separate Account, Liability [Roll Forward] | ||||
Balance, beginning of period | $ 892 | |||
Balance, end of period | $ 911 | 911 | ||
Universal life | ||||
Separate Account, Liability [Roll Forward] | ||||
Balance, beginning of period | 899 | $ 903 | 892 | $ 959 |
Interest credited before policy charges | 10 | 10 | 20 | 20 |
Change in unrealized gains and losses impacting separate account liabilities | 0 | (53) | 0 | (105) |
Benefit payments | (1) | 0 | (3) | (10) |
Other | 3 | 0 | 2 | (4) |
Balance, end of period | 911 | 860 | 911 | 860 |
Cash surrender value | $ 906 | $ 878 | $ 906 | $ 878 |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs - Deferred Policy Acquisition Costs and Asset Reconciliation (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Movement Analysis of Deferred Policy Acquisition Costs | ||||
Deferred policy acquisition costs asset, beginning of period | $ 1,048 | $ 984 | $ 1,013 | $ 916 |
Capitalized deferred policy acquisition costs | 418 | 385 | 801 | 761 |
Amortized deferred policy acquisition costs | (357) | (323) | (705) | (631) |
Deferred policy acquisition costs asset, end of period | 1,109 | 1,046 | 1,109 | 1,046 |
Consolidated Property And Casualty Insurance | ||||
Movement Analysis of Deferred Policy Acquisition Costs | ||||
Deferred policy acquisition costs asset, beginning of period | 714 | 665 | 682 | 602 |
Capitalized deferred policy acquisition costs | 407 | 375 | 779 | 739 |
Amortized deferred policy acquisition costs | (350) | (317) | (690) | (618) |
Deferred policy acquisition costs asset, end of period | 771 | 723 | 771 | 723 |
Life Insurance Segment | ||||
Movement Analysis of Deferred Policy Acquisition Costs | ||||
Deferred policy acquisition costs asset, beginning of period | 334 | 319 | 331 | 314 |
Capitalized deferred policy acquisition costs | 11 | 10 | 22 | 22 |
Amortized deferred policy acquisition costs | (7) | (6) | (15) | (13) |
Deferred policy acquisition costs asset, end of period | $ 338 | $ 323 | $ 338 | $ 323 |
Deferred Policy Acquisition C_4
Deferred Policy Acquisition Costs - ASU 2018-12 Transition Deferred Acquisition Costs Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
ASU 2018-12 | |||||||
Deferred policy acquisition costs | $ 1,109 | $ 1,048 | $ 1,013 | $ 1,046 | $ 984 | $ 916 | |
Accounting Standards Update 2018-12 | |||||||
ASU 2018-12 | |||||||
Deferred policy acquisition costs | 1,013 | $ 296 | |||||
Effect of Modified Retrospective Application Accounting Standards Update 2018-12 | Accounting Standards Update 2018-12 | |||||||
ASU 2018-12 | |||||||
Deferred policy acquisition costs | $ (1) | $ 33 |
Deferred Policy Acquisition C_5
Deferred Policy Acquisition Costs - Life Deferred Acquisition Costs Rollforward by Product (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Movement Analysis of Deferred Policy Acquisition Costs | ||||
Deferred policy acquisition costs asset, beginning of period | $ 1,048 | $ 984 | $ 1,013 | $ 916 |
Capitalized deferred policy acquisition costs | 418 | 385 | 801 | 761 |
Amortized deferred policy acquisition costs | (357) | (323) | (705) | (631) |
Deferred policy acquisition costs asset, end of period | 1,109 | 1,046 | 1,109 | 1,046 |
Term Life Insurance | ||||
Movement Analysis of Deferred Policy Acquisition Costs | ||||
Deferred policy acquisition costs asset, beginning of period | 231 | 220 | 228 | 215 |
Capitalized deferred policy acquisition costs | 7 | 8 | 16 | 18 |
Amortized deferred policy acquisition costs | (5) | (6) | (11) | (11) |
Deferred policy acquisition costs asset, end of period | 233 | 222 | 233 | 222 |
Whole Life Insurance | ||||
Movement Analysis of Deferred Policy Acquisition Costs | ||||
Deferred policy acquisition costs asset, beginning of period | 44 | 39 | 43 | 38 |
Capitalized deferred policy acquisition costs | 2 | 1 | 4 | 3 |
Amortized deferred policy acquisition costs | (1) | 0 | (2) | (1) |
Deferred policy acquisition costs asset, end of period | 45 | 40 | 45 | 40 |
Deferred Fixed Annuity | ||||
Movement Analysis of Deferred Policy Acquisition Costs | ||||
Deferred policy acquisition costs asset, beginning of period | 7 | 7 | 7 | 7 |
Capitalized deferred policy acquisition costs | 1 | 0 | 1 | 0 |
Amortized deferred policy acquisition costs | 0 | 0 | 0 | 0 |
Deferred policy acquisition costs asset, end of period | 8 | 7 | 8 | 7 |
Universal life | ||||
Movement Analysis of Deferred Policy Acquisition Costs | ||||
Deferred policy acquisition costs asset, beginning of period | 52 | 53 | 53 | 54 |
Capitalized deferred policy acquisition costs | 1 | 1 | 1 | 1 |
Amortized deferred policy acquisition costs | (1) | 0 | (2) | (1) |
Deferred policy acquisition costs asset, end of period | 52 | 54 | 52 | 54 |
Life Insurance Segment | ||||
Movement Analysis of Deferred Policy Acquisition Costs | ||||
Deferred policy acquisition costs asset, beginning of period | 334 | 319 | 331 | 314 |
Capitalized deferred policy acquisition costs | 11 | 10 | 22 | 22 |
Amortized deferred policy acquisition costs | (7) | (6) | (15) | (13) |
Deferred policy acquisition costs asset, end of period | $ 338 | $ 323 | $ 338 | $ 323 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (AOCI) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
AOCI, Net of Tax | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (614) | |||
AOCI, net of tax, end of period | $ (626) | (626) | ||
AOCI on Net Unrecognized Investment Gain (Loss) | ||||
AOCI, Before Tax | ||||
AOCI, before tax, beginning of period | (684) | $ 46 | (847) | $ 792 |
Other comprehensive income before reclassification, before tax | (158) | (610) | 5 | (1,353) |
Reclassification adjustment, before tax | 4 | 0 | 4 | (3) |
Effect on other comprehensive income, before tax | (154) | (610) | 9 | (1,356) |
AOCI, before tax, end of period | (838) | (564) | (838) | (564) |
AOCI, Tax | ||||
AOCI, tax, beginning of period | (147) | 8 | (182) | 165 |
Other comprehensive income before reclassification, tax | (34) | (127) | 1 | (284) |
Reclassification adjustment, tax | 2 | 0 | 2 | 0 |
Effect on other comprehensive income, tax | (32) | (127) | 3 | (284) |
AOCI, tax, end of period | (179) | (119) | (179) | (119) |
AOCI, Net of Tax | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (537) | 38 | (665) | 627 |
Other comprehensive income before reclassification, net of tax | (124) | (483) | 4 | (1,069) |
Reclassification adjustment, net of tax | 2 | 0 | 2 | (3) |
Effect on other comprehensive income, net of tax | (122) | (483) | 6 | (1,072) |
AOCI, net of tax, end of period | (659) | (445) | (659) | (445) |
AOCI on Pension Obligations | ||||
AOCI, Before Tax | ||||
AOCI, before tax, beginning of period | 30 | 27 | 36 | 27 |
Other comprehensive income before reclassification, before tax | 0 | 0 | (5) | 0 |
Reclassification adjustment, before tax | (1) | 0 | (2) | 0 |
Effect on other comprehensive income, before tax | (1) | 0 | (7) | 0 |
AOCI, before tax, end of period | 29 | 27 | 29 | 27 |
AOCI, Tax | ||||
AOCI, tax, beginning of period | 8 | 7 | 9 | 7 |
Other comprehensive income before reclassification, tax | 0 | 0 | (1) | 0 |
Reclassification adjustment, tax | (1) | 0 | (1) | 0 |
Effect on other comprehensive income, tax | (1) | 0 | (2) | 0 |
AOCI, tax, end of period | 7 | 7 | 7 | 7 |
AOCI, Net of Tax | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 22 | 20 | 27 | 20 |
Other comprehensive income before reclassification, net of tax | 0 | 0 | (4) | 0 |
Reclassification adjustment, net of tax | 0 | 0 | (1) | 0 |
Effect on other comprehensive income, net of tax | 0 | 0 | (5) | 0 |
AOCI, net of tax, end of period | 22 | 20 | 22 | 20 |
AOCI on Life Policy Reserves, Reinsurance Recoverable And Other | ||||
AOCI, Before Tax | ||||
AOCI, before tax, beginning of period | (16) | (248) | 29 | (444) |
Other comprehensive income before reclassification, before tax | 29 | 181 | (16) | 377 |
Reclassification adjustment, before tax | 0 | 0 | 0 | 0 |
Effect on other comprehensive income, before tax | 29 | 181 | (16) | 377 |
AOCI, before tax, end of period | 13 | (67) | 13 | (67) |
AOCI, Tax | ||||
AOCI, tax, beginning of period | (4) | (52) | 5 | (93) |
Other comprehensive income before reclassification, tax | 6 | 38 | (3) | 79 |
Reclassification adjustment, tax | 0 | 0 | 0 | 0 |
Effect on other comprehensive income, tax | 6 | 38 | (3) | 79 |
AOCI, tax, end of period | 2 | (14) | 2 | (14) |
AOCI, Net of Tax | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (12) | (196) | 24 | (351) |
Other comprehensive income before reclassification, net of tax | 23 | 143 | (13) | 298 |
Reclassification adjustment, net of tax | 0 | 0 | 0 | 0 |
Effect on other comprehensive income, net of tax | 23 | 143 | (13) | 298 |
AOCI, net of tax, end of period | 11 | (53) | 11 | (53) |
Summary of AOCI | ||||
AOCI, Before Tax | ||||
AOCI, before tax, beginning of period | (670) | (175) | (782) | 375 |
Change in unrealized gains, net, on investments available for sale, before tax | (154) | (610) | 9 | (1,356) |
Change in pension obligations, before tax | (1) | 0 | (7) | 0 |
Change in life policy reserves, reinsurance recoverable and other, before tax | 29 | 181 | (16) | 377 |
Effect on other comprehensive income, before tax | (126) | (429) | (14) | (979) |
AOCI, before tax, end of period | (796) | (604) | (796) | (604) |
AOCI, Tax | ||||
AOCI, tax, beginning of period | (143) | (37) | (168) | 79 |
Change in unrealized gains, net, on investments available for sale, tax | (32) | (127) | 3 | (284) |
Change in pension obligations, tax | (1) | 0 | (2) | 0 |
Change in Life Policy Reserves, Reinsurance Recoverable and Other, Tax | 6 | 38 | (3) | 79 |
Effect on other comprehensive income, tax | (27) | (89) | (2) | (205) |
AOCI, tax, end of period | (170) | (126) | (170) | (126) |
AOCI, Net of Tax | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (527) | (138) | (614) | 296 |
Change in unrealized gains, net, on investments available for sale, net of tax | (122) | (483) | 6 | (1,072) |
Change in pension obligations, net of tax | 0 | 0 | (5) | 0 |
Change in Life Policy Reserves, Reinsurance Recoverable and Other, Net of Tax | 23 | 143 | (13) | 298 |
Effect on other comprehensive income, net of tax | (99) | (340) | (12) | (774) |
AOCI, net of tax, end of period | $ (626) | $ (478) | (626) | (478) |
As originally reported | AOCI on Life Policy Reserves, Reinsurance Recoverable And Other | ||||
AOCI, Before Tax | ||||
AOCI, before tax, beginning of period | 29 | 1 | ||
AOCI, Tax | ||||
AOCI, tax, beginning of period | 5 | 0 | ||
AOCI, Net of Tax | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 24 | 1 | ||
As originally reported | Summary of AOCI | ||||
AOCI, Before Tax | ||||
AOCI, before tax, beginning of period | (782) | 820 | ||
AOCI, Tax | ||||
AOCI, tax, beginning of period | (168) | 172 | ||
AOCI, Net of Tax | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (614) | 648 | ||
As adjusted | AOCI on Life Policy Reserves, Reinsurance Recoverable And Other | ||||
AOCI, Before Tax | ||||
AOCI, before tax, beginning of period | 0 | (445) | ||
AOCI, Tax | ||||
AOCI, tax, beginning of period | 0 | (93) | ||
AOCI, Net of Tax | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 0 | (352) | ||
As adjusted | Summary of AOCI | ||||
AOCI, Before Tax | ||||
AOCI, before tax, beginning of period | 0 | (445) | ||
AOCI, Tax | ||||
AOCI, tax, beginning of period | 0 | (93) | ||
AOCI, Net of Tax | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ 0 | $ (352) |
Reinsurance - Consolidated Prop
Reinsurance - Consolidated Property Casualty Insurance Assumed and Ceded Business (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Property Casualty Insurance Assumed And Ceded Business | ||||
Earned premiums | $ 1,943 | $ 1,773 | $ 3,861 | $ 3,466 |
Incurred loss and loss expenses | 1,340 | 1,322 | 2,738 | 2,354 |
Consolidated Property And Casualty Insurance | ||||
Property Casualty Insurance Assumed And Ceded Business | ||||
Direct written premiums | 2,071 | 1,871 | 3,930 | 3,574 |
Assumed written premiums | 194 | 193 | 438 | 456 |
Ceded written premiums | (115) | (100) | (199) | (167) |
Net written premiums | 2,150 | 1,964 | 4,169 | 3,863 |
Direct earned premiums | 1,806 | 1,631 | 3,566 | 3,192 |
Assumed earned premiums | 134 | 134 | 293 | 255 |
Ceded earned premiums | (77) | (68) | (155) | (132) |
Earned premiums | 1,863 | 1,697 | 3,704 | 3,315 |
Direct incurred loss and loss expenses | 1,265 | 1,174 | 2,564 | 2,069 |
Assumed incurred loss and loss expenses | 58 | 67 | 134 | 140 |
Ceded incurred loss and loss expenses | (61) | (1) | (119) | (13) |
Incurred loss and loss expenses | $ 1,262 | $ 1,240 | $ 2,579 | $ 2,196 |
Reinsurance - Life Insurance Ce
Reinsurance - Life Insurance Ceded Business (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Reinsurance for Insurance Companies, by Product Segment | ||||
Insurance losses and contract holders' benefits | $ 1,340 | $ 1,322 | $ 2,738 | $ 2,354 |
Life Insurance Segment | ||||
Reinsurance for Insurance Companies, by Product Segment | ||||
Direct earned premiums | 100 | 96 | 196 | 189 |
Ceded earned premiums | (20) | (20) | (39) | (38) |
Earned premiums | 80 | 76 | 157 | 151 |
Direct contract holders' benefits incurred | 100 | 109 | 197 | 212 |
Ceded contract holders' benefits incurred | (22) | (27) | (38) | (54) |
Insurance losses and contract holders' benefits | $ 78 | $ 82 | $ 159 | $ 158 |
Reinsurance (Details)
Reinsurance (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Consolidated Property And Casualty Insurance | ||
Reinsurance for Insurance Companies, by Product Segment | ||
Premium Receivable, Allowance for Credit Loss | $ 14 | $ 13 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Income Tax Contingency | |||||
Tax at statutory rate, percentage | 21% | 21% | 21% | 21% | |
Deferred tax assets valuation allowance | $ 0 | $ 0 | $ 0 | ||
Cincinnati Global | |||||
Income Tax Contingency | |||||
Decrease in deferred tax assets | 5 | 10 | |||
Decrease in deferred tax valuation allowance | 5 | 10 | |||
Net deferred tax assets | 21 | 21 | |||
Deferred tax assets valuation allowance | 21 | 21 | |||
Cincinnati Global | United States | |||||
Income Tax Contingency | |||||
Operating loss carryforwards | 6 | 6 | 5 | ||
Cincinnati Global | United Kingdom | |||||
Income Tax Contingency | |||||
Operating loss carryforwards | $ 101 | $ 101 | $ 109 |
Income Taxes - Differences Betw
Income Taxes - Differences Between Statutory Income Tax Rate and Effective Income Tax Rate (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Increase (decrease) resulting from: | ||||
Tax at statutory rate | $ 140 | $ (220) | $ 196 | $ (294) |
Tax-exempt income from municipal bonds | (5) | (5) | (10) | (10) |
Dividend received exclusion | (6) | (5) | (11) | (10) |
Other | 3 | (5) | 0 | (6) |
Total provision (benefit) for income taxes | $ 132 | $ (235) | $ 175 | $ (320) |
Increase (decrease) resulting from: | ||||
Tax at statutory rate | 21% | 21% | 21% | 21% |
Tax-exempt income from municipal bonds, Percent | (0.80%) | 0.50% | (1.10%) | 0.70% |
Dividend received exclusion, Percent | (0.90%) | 0.50% | (1.20%) | 0.70% |
Other | 0.50% | 0.30% | 0% | 0.40% |
Provision for income taxes | 19.80% | 22.30% | 18.70% | 22.80% |
Net Income (Loss) Per Common _3
Net Income (Loss) Per Common Share - Calculations for Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Numerator: | ||||
Net income (loss)—basic and diluted | $ 534 | $ (818) | $ 759 | $ (1,084) |
Denominator: | ||||
Basic weighted-average common shares outstanding (in shares) | 157 | 159.6 | 157.1 | 160 |
Diluted weighted-average shares | 158 | 159.6 | 158.3 | 160 |
Earnings (loss) per share: | ||||
Basic (in USD per share) | $ 3.40 | $ (5.12) | $ 4.83 | $ (6.77) |
Diluted (in USD per share) | $ 3.38 | $ (5.12) | $ 4.80 | $ (6.77) |
Number of anti-dilutive stock-based awards (in shares) | 1.5 | 2 | 1.5 | 2.2 |
Stock Options | ||||
Denominator: | ||||
Effect of stock-based awards (in shares) | 0.6 | 0 | 0.8 | 0 |
Nonvested shares | ||||
Denominator: | ||||
Effect of stock-based awards (in shares) | 0.4 | 0 | 0.4 | 0 |
Employee Retirement Benefits -
Employee Retirement Benefits - Components of Net Periodic Costs for Qualified and Supplemental Pension Plans (Details) - Qualified Pension Plans - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Defined Benefit Plan Disclosure | ||||
Service cost | $ 2 | $ 3 | $ 3 | $ 5 |
Interest cost | 3 | 2 | 6 | 5 |
Expected return on plan assets | (5) | (5) | (10) | (11) |
Amortization of actuarial loss and prior service cost | (1) | 0 | (2) | 0 |
Other | 0 | 0 | (5) | 0 |
Total non-service benefit | (3) | (3) | (11) | (6) |
Net periodic benefit cost | $ (1) | $ 0 | $ (8) | $ (1) |
Employee Retirement Benefits _2
Employee Retirement Benefits - Defined Contribution Plan Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Defined Benefit Plan Disclosure | ||||
Matching contributions to 401(k) and Top Hat plans | $ 6,000,000 | $ 6,000,000 | $ 14,000,000 | $ 14,000,000 |
Qualified Pension Plans | ||||
Defined Benefit Plan Disclosure | ||||
Pension contributions | $ 0 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 6 Months Ended |
Jun. 30, 2023 industry segment | |
Segment Reporting [Abstract] | |
Number of Industries Operating In | industry | 2 |
Number of Reportable Segments | segment | 5 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Segment Reporting Information | |||||
Earned premiums | $ 1,943 | $ 1,773 | $ 3,861 | $ 3,466 | |
Fee revenues | 6 | 3 | 10 | 7 | |
Investment income, net of expenses | 220 | 195 | 430 | 380 | |
Investment gains and losses, net | 434 | (1,154) | 540 | (1,820) | |
Other revenues | 2 | 3 | 5 | 5 | |
Total revenues | 2,605 | 820 | 4,846 | 2,038 | |
Income before Income Taxes | 666 | (1,053) | 934 | (1,404) | |
Assets | 31,352 | 31,352 | $ 29,732 | ||
Consolidated Property And Casualty Insurance | |||||
Segment Reporting Information | |||||
Earned premiums | 1,863 | 1,697 | 3,704 | 3,315 | |
Assets | 5,354 | 5,354 | 5,178 | ||
Life Insurance Segment | |||||
Segment Reporting Information | |||||
Assets | 1,542 | 1,542 | 1,518 | ||
Investment Segment | |||||
Segment Reporting Information | |||||
Assets | 23,535 | 23,535 | 22,133 | ||
Corporate and Other | |||||
Segment Reporting Information | |||||
Assets | 921 | 921 | $ 903 | ||
Operating Segments | Commercial Insurance | |||||
Segment Reporting Information | |||||
Earned premiums | 1,066 | 994 | 2,122 | 1,956 | |
Fee revenues | 1 | 1 | 2 | 2 | |
Total revenues | 1,067 | 995 | 2,124 | 1,958 | |
Income Before Income Taxes | 33 | (62) | 31 | 14 | |
Operating Segments | Commercial Insurance | Commercial Casualty Line | |||||
Segment Reporting Information | |||||
Earned premiums | 373 | 350 | 750 | 686 | |
Operating Segments | Commercial Insurance | Commercial Property Line | |||||
Segment Reporting Information | |||||
Earned premiums | 312 | 280 | 611 | 554 | |
Operating Segments | Commercial Insurance | Commercial Auto Line | |||||
Segment Reporting Information | |||||
Earned premiums | 214 | 210 | 428 | 415 | |
Operating Segments | Commercial Insurance | Workers' Compensation Line | |||||
Segment Reporting Information | |||||
Earned premiums | 72 | 68 | 146 | 136 | |
Operating Segments | Commercial Insurance | Other Commercial Lines | |||||
Segment Reporting Information | |||||
Earned premiums | 95 | 86 | 187 | 165 | |
Operating Segments | Personal Insurance | |||||
Segment Reporting Information | |||||
Earned premiums | 493 | 413 | 957 | 815 | |
Fee revenues | 1 | 1 | 2 | 2 | |
Total revenues | 494 | 414 | 959 | 817 | |
Income Before Income Taxes | (36) | (49) | (93) | 16 | |
Operating Segments | Personal Insurance | Personal Auto | |||||
Segment Reporting Information | |||||
Earned premiums | 173 | 155 | 339 | 307 | |
Operating Segments | Personal Insurance | Home Owner Line | |||||
Segment Reporting Information | |||||
Earned premiums | 251 | 202 | 484 | 397 | |
Operating Segments | Personal Insurance | Other Personal Lines | |||||
Segment Reporting Information | |||||
Earned premiums | 69 | 56 | 134 | 111 | |
Operating Segments | Excess and Surplus Lines Insurance | |||||
Segment Reporting Information | |||||
Earned premiums | 132 | 124 | 259 | 236 | |
Fee revenues | 1 | 0 | 1 | 1 | |
Total revenues | 133 | 124 | 260 | 237 | |
Income Before Income Taxes | 11 | 19 | 24 | 35 | |
Operating Segments | Life Insurance Segment | |||||
Segment Reporting Information | |||||
Earned premiums | 80 | 76 | 157 | 151 | |
Fee revenues | 3 | 1 | 5 | 2 | |
Total revenues | 83 | 77 | 162 | 153 | |
Income Before Income Taxes | 13 | 1 | 21 | 8 | |
Operating Segments | Investment Segment | |||||
Segment Reporting Information | |||||
Investment income, net of expenses | 220 | 195 | 430 | 380 | |
Investment gains and losses, net | 434 | (1,154) | 540 | (1,820) | |
Total revenues | 654 | (959) | 970 | (1,440) | |
Income Before Income Taxes | 624 | (987) | 910 | (1,495) | |
Corporate, Non-Segment | |||||
Segment Reporting Information | |||||
Total revenues | 174 | 169 | 371 | 313 | |
Corporate, Non-Segment | Reinsurance assumed and other non segment | |||||
Segment Reporting Information | |||||
Earned premiums | 172 | 166 | 366 | 308 | |
Corporate, Non-Segment | Corporate and Other | |||||
Segment Reporting Information | |||||
Other revenues | 2 | 3 | 5 | 5 | |
Income Before Income Taxes | $ 21 | $ 25 | $ 41 | $ 18 |