Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 19, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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) | 156,558,411 | |
Entity Central Index Key | 0000020286 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Investments | ||
Fixed maturities, at fair value (amortized cost: 2024—$14,709; 2023—$14,361) | $ 14,084 | $ 13,791 |
Equity securities, at fair value (cost: 2024—$4,313; 2023—$4,282) | 11,557 | 10,989 |
Other invested assets | 608 | 577 |
Total investments | 26,249 | 25,357 |
Cash and cash equivalents | 619 | 907 |
Investment income receivable | 202 | 192 |
Finance receivable | 106 | 108 |
Premiums receivable | 2,805 | 2,592 |
Reinsurance recoverable | 617 | 651 |
Prepaid reinsurance premiums | 77 | 55 |
Deferred policy acquisition costs | 1,143 | 1,093 |
Land, building and equipment, net, for company use (accumulated depreciation: 2024—$331; 2023—$337) | 211 | 208 |
Other assets | 771 | 681 |
Separate accounts | 927 | 925 |
Total assets | 33,727 | 32,769 |
Insurance reserves | ||
Reserve for loss and loss expenses | 9,246 | 9,050 |
Life policy and investment contract reserves | 3,013 | 3,068 |
Unearned premiums | 4,398 | 4,119 |
Other liabilities | 1,156 | 1,311 |
Deferred income tax | 1,460 | 1,324 |
Note payable | 25 | 25 |
Long-term debt and lease obligations | 848 | 849 |
Separate accounts | 927 | 925 |
Total liabilities | 21,073 | 20,671 |
Commitments and contingent liabilities (Note 12) | ||
Shareholders' Equity | ||
Common stock, par value—$2 per share; (authorized: 2024 and 2023—500 million shares; issued: 2024 and 2023—198.3 million shares) | 397 | 397 |
Paid-in capital | 1,446 | 1,437 |
Retained earnings | 13,712 | 13,084 |
Accumulated other comprehensive loss | (442) | (435) |
Treasury stock at cost (2024—41.8 million shares and 2023—41.3 million shares) | (2,459) | (2,385) |
Total shareholders' equity | 12,654 | 12,098 |
Total liabilities and shareholders' equity | $ 33,727 | $ 32,769 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Debt Securities, Available-for-sale, Amortized Cost | $ 14,709 | $ 14,361 |
Equity Securities, FV-NI, Cost | 4,313 | 4,282 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 331 | $ 337 |
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) | 41.8 | 41.3 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues | ||
Earned premiums | $ 2,071 | $ 1,918 |
Investment income, net of expenses | 245 | 210 |
Investment gains and losses, net | 612 | 106 |
Fee revenues | 4 | 4 |
Other revenues | 3 | 3 |
Total revenues | 2,935 | 2,241 |
Benefits and Expenses | ||
Insurance losses and contract holders' benefits | 1,349 | 1,398 |
Underwriting, acquisition and insurance expenses | 616 | 556 |
Interest expense | 13 | 14 |
Other operating expenses | 4 | 5 |
Total benefits and expenses | 1,982 | 1,973 |
Income Before Income Taxes | 953 | 268 |
Provision for Income Taxes | ||
Current | 61 | 16 |
Deferred | 137 | 27 |
Total provision for income taxes | 198 | 43 |
Net Income | $ 755 | $ 225 |
Per Common Share | ||
Net income — basic | $ 4.82 | $ 1.43 |
Net income — diluted | $ 4.78 | $ 1.42 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 755 | $ 225 |
Change in unrealized gains and losses on investments, net of tax (benefit) of $(11) and $35, respectively | (44) | 128 |
Amortization of pension actuarial loss and prior service cost, net of tax (benefit) of $0 and $(1), respectively | 0 | (5) |
Change in life policy reserves, reinsurance recoverable and other, net of tax (benefit) of $10 and $(9), respectively | 37 | (36) |
Other comprehensive income (loss) | (7) | 87 |
Comprehensive Income | $ 748 | $ 312 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, Tax | $ (11) | $ 35 |
Other Comprehensive Income Loss, Pension And Other Postretirement Benefit Plans, Net Actuarial Loss And Prior Service Cost Arising During Period, Tax | 0 | (1) |
Change in life policy reserves, reinsurance recoverable and other, tax | $ 10 | $ (9) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Millions | Total | Common equities | Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Treasury Stock |
Beginning Balance at Dec. 31, 2022 | $ 397 | $ 1,392 | $ 11,711 | $ (614) | $ (2,324) | |
Share-based awards | 0 | (6) | 7 | |||
Share-based compensation | 12 | |||||
Other | 0 | |||||
Net Income | $ 225 | 225 | ||||
Dividends declared | (118) | |||||
Other comprehensive income (loss) | 87 | 87 | ||||
Shares acquired - share repurchase authorization | (25) | |||||
Shares acquired - share-based compensation plans | (3) | |||||
Ending Balance at Mar. 31, 2023 | 10,741 | $ 397 | 1,398 | 11,818 | (527) | (2,345) |
Beginning Balance (in shares) at Dec. 31, 2022 | 157,100 | |||||
Share-based awards (in shares) | 300 | |||||
Shares acquired - share repurchase authorization (in shares) | (200) | |||||
Shares acquired during period, Employee Share-Based Compensation Plans, Shares | 0 | |||||
Ending Balance (in shares) at Mar. 31, 2023 | 157,200 | |||||
Dividends declared per common share (in dollars per share) | $ 0.75 | |||||
Beginning Balance at Dec. 31, 2023 | 12,098 | $ 397 | 1,437 | 13,084 | (435) | (2,385) |
Share-based awards | 0 | (6) | 8 | |||
Share-based compensation | 14 | |||||
Other | 1 | |||||
Net Income | 755 | 755 | ||||
Dividends declared | (127) | |||||
Other comprehensive income (loss) | (7) | (7) | ||||
Shares acquired - share repurchase authorization | (75) | |||||
Shares acquired - share-based compensation plans | (7) | |||||
Ending Balance at Mar. 31, 2024 | $ 12,654 | $ 397 | $ 1,446 | $ 13,712 | $ (442) | $ (2,459) |
Beginning Balance (in shares) at Dec. 31, 2023 | 157,000 | |||||
Share-based awards (in shares) | 300 | |||||
Shares acquired - share repurchase authorization (in shares) | (700) | |||||
Shares acquired during period, Employee Share-Based Compensation Plans, Shares | (100) | |||||
Ending Balance (in shares) at Mar. 31, 2024 | 156,500 | |||||
Dividends declared per common share (in dollars per share) | $ 0.81 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash Flows From Operating Activities | ||
Net Income | $ 755 | $ 225 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization and other | 34 | 40 |
Investment gains and losses, net | (608) | (93) |
Interest credited to contract holders | 11 | 10 |
Deferred income tax expense | 137 | 27 |
Changes in: | ||
Premiums and reinsurance receivable | (203) | (229) |
Deferred policy acquisition costs | (50) | (36) |
Other assets | (8) | (24) |
Loss and loss expense reserves | 196 | 293 |
Life policy and investment contract reserves | 26 | 25 |
Unearned premiums | 279 | 201 |
Other liabilities | (161) | (121) |
Current income tax receivable/payable | (55) | (68) |
Net cash provided by operating activities | 353 | 250 |
Cash Flows From Investing Activities | ||
Sale, call or maturity of fixed maturities | 464 | 303 |
Sale of equity securities | 266 | 4 |
Purchase of fixed maturities | (838) | (606) |
Purchase of equity securities | (226) | (22) |
Changes in finance receivables | 2 | (3) |
Investment in building and equipment | (7) | (4) |
Change in other invested assets, net | (16) | (34) |
Net cash used in investing activities | (355) | (362) |
Cash Flows From Financing Activities | ||
Payment of cash dividends to shareholders | (116) | (106) |
Shares acquired - share repurchase authorization | (75) | (25) |
Proceeds from stock options exercised | 3 | 5 |
Contract holders' funds deposited | 19 | 20 |
Contract holders' funds withdrawn | (60) | (58) |
Other | (57) | (33) |
Net cash used in financing activities | (286) | (197) |
Net change in cash and cash equivalents | (288) | (309) |
Cash and cash equivalents at beginning of year | 907 | 1,264 |
Cash and cash equivalents at end of period | 619 | 955 |
Supplemental Disclosures of Cash Flow Information: | ||
Interest paid | 0 | 1 |
Income taxes paid | 106 | 76 |
Noncash Activities | ||
Equipment acquired under finance lease obligations | 4 | 1 |
Share-based compensation | 17 | 11 |
Other assets and other liabilities | $ 97 | $ 96 |
Accounting Policies
Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024, 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 2023 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. Pending Accounting Updates ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 enhances reportable segment disclosures by requiring entities to disclose significant segment expenses that are regularly provided to the chief operating decision maker (CODM) and included within the reported measure of profit or loss. This ASU also requires disclosure of the title and position of the CODM as well as a description of how the reported measure of profit or loss is used to assess segment performance and allocate resources. The effective date of ASU 2023-07 is for annual reporting periods beginning after December 15, 2023, and interim reporting periods within annual periods beginning after December 15, 2024, and should be applied retrospectively to all prior periods presented. The ASU has not yet been adopted and will not have a material impact on our company’s consolidated financial position, results of operations or cash flows, but the ASU will require additional disclosures in our annual and interim financial statements. ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 enhances the transparency and decision usefulness of income tax disclosures by requiring entities to disclose specific categories within their rate reconciliation as well as additional items within those categories above a prescribed threshold. This ASU also requires disclosure of the amount of income taxes paid (net of refunds received) disaggregated by federal, state and foreign taxes as well as additional items within those categories above a prescribed threshold. The effective date of ASU 2023-09 is for annual reporting periods beginning after December 15, 2024, and should be applied prospectively with retrospective application permitted. The ASU has not yet been adopted and will not have a material impact on our company’s consolidated financial position, results of operations or cash flows, but the ASU will require additional disclosures in our annual financial statements . |
Investments
Investments | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 gains losses Fixed-maturity securities: Corporate $ 8,002 $ 60 $ 463 $ 7,599 States, municipalities and political subdivisions 4,872 28 232 4,668 Government-sponsored enterprises 1,424 1 4 1,421 Asset-backed 200 — 11 189 United States government 182 — 4 178 Foreign government 29 — — 29 Total $ 14,709 $ 89 $ 714 $ 14,084 At December 31, 2023 Fixed-maturity securities: Corporate $ 7,836 $ 70 $ 454 $ 7,452 States, municipalities and political subdivisions 4,867 44 208 4,703 Government-sponsored enterprises 1,227 3 6 1,224 Asset-backed 203 — 16 187 United States government 203 — 3 200 Foreign government 25 — — 25 Total $ 14,361 $ 117 $ 687 $ 13,791 The increase in net unrealized investment losses in our fixed-maturity portfolio at March 31, 2024, is primarily due to an increase in U.S. Treasury yields that were partially offset by a tightening of corporate credit spreads. Our asset-backed securities had an average rating of Aa3/AA- at both March 31, 2024, and December 31, 2023. The table below provides fair values and gross unrealized losses by investment category and by the duration of the securities' continuous unrealized loss positions: (Dollars in millions) Less than 12 months 12 months or more Total At March 31, 2024 Fair Unrealized Fair Unrealized Fair Unrealized Fixed-maturity securities: Corporate $ 642 $ 13 $ 5,488 $ 450 $ 6,130 $ 463 States, municipalities and political subdivisions 1,099 9 1,900 223 2,999 232 Government-sponsored enterprises 396 1 168 3 564 4 Asset-backed 30 — 133 11 163 11 United States government 74 — 105 4 179 4 Foreign government 17 — 5 — 22 — Total $ 2,258 $ 23 $ 7,799 $ 691 $ 10,057 $ 714 At December 31, 2023 Fixed-maturity securities: Corporate $ 379 $ 13 $ 5,560 $ 441 $ 5,939 $ 454 States, municipalities and political subdivisions 313 2 1,932 206 2,245 208 Government-sponsored enterprises 652 3 113 3 765 6 Asset-backed 5 — 172 16 177 16 United States government 32 — 129 3 161 3 Foreign government 3 — 6 — 9 — Total $ 1,384 $ 18 $ 7,912 $ 669 $ 9,296 $ 687 Contractual maturity dates for fixed-maturities securities were: (Dollars in millions) Amortized Fair % of fair At March 31, 2024 Maturity dates: Due in one year or less $ 971 $ 963 6.8 % Due after one year through five years 4,413 4,300 30.5 Due after five years through ten years 3,553 3,427 24.3 Due after ten years 5,772 5,394 38.4 Total $ 14,709 $ 14,084 100.0 % 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 March 31, 2024 2023 Investment income: Interest $ 169 $ 140 Dividends 72 66 Other 7 7 Total 248 213 Less investment expenses 3 3 Total $ 245 $ 210 Investment gains and losses, net: Equity securities: Investment gains and losses on securities sold, net $ (11) $ (1) Unrealized gains and losses on securities still held, net 613 106 Subtotal 602 105 Fixed-maturity securities: Gross realized gains — 1 Gross realized losses (1) (1) Change in allowance for credit losses, net (9) — Subtotal (10) — Other 20 1 Total $ 612 $ 106 The fair value of our equity portfolio was $11.557 billion and $10.989 billion at March 31, 2024, and December 31, 2023, respectively. Microsoft Corporation (Nasdaq:MSFT), an equity holding, was our largest single investment holding with a fair value of $942 million and $842 million, which was 8.4% and 7.9% of our publicly traded common equities portfolio and 3.7% and 3.4% of the total investment portfolio at March 31, 2024, and December 31, 2023, respectively. The allowance for credit losses on fixed-maturity securities was $27 million and $18 million at March 31, 2024, and December 31, 2023, respectively. There were 3,329 and 2,840 fixed-maturity securities in a total unrealized loss position of $714 million and $687 million at March 31, 2024, and December 31, 2023, respectively. Of those totals, 12 and 20 fixed-maturity securities had fair values below 70% of amortized cost at March 31, 2024, and December 31, 2023, respectively. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
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, 2023, and ultimately management determines fair value. See our 2023 Annual Report on Form 10-K, Item 8, Note 3, Fair Value Measurements, Page 139, 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 March 31, 2024, and December 31, 2023. We do not have any liabilities carried at fair value. (Dollars in millions) Level 1 Level 2 Level 3 Total At March 31, 2024 Fixed maturities, available for sale: Corporate $ — $ 7,599 $ — $ 7,599 States, municipalities and political subdivisions — 4,668 — 4,668 Government-sponsored enterprises — 1,421 — 1,421 Asset-backed — 189 — 189 United States government 178 — — 178 Foreign government — 29 — 29 Subtotal 178 13,906 — 14,084 Common equities 11,203 — — 11,203 Nonredeemable preferred equities — 354 — 354 Separate accounts taxable fixed maturities — 866 — 866 Top Hat savings plan mutual funds and common 78 — — 78 Total $ 11,459 $ 15,126 $ — $ 26,585 At December 31, 2023 Fixed maturities, available for sale: Corporate $ — $ 7,452 $ — $ 7,452 States, municipalities and political subdivisions — 4,703 — 4,703 Government-sponsored enterprises — 1,224 — 1,224 Asset-backed — 187 — 187 United States government 200 — — 200 Foreign government — 25 — 25 Subtotal 200 13,591 — 13,791 Common equities 10,641 — — 10,641 Nonredeemable preferred equities — 348 — 348 Separate accounts taxable fixed maturities — 854 — 854 Top Hat savings plan mutual funds and common 67 — — 67 Total $ 10,908 $ 14,793 $ — $ 25,701 We also held Level 1 cash and cash equivalents of $619 million and $907 million at March 31, 2024, and December 31, 2023, 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 March 31, December 31, March 31, December 31, 2024 2023 2024 2023 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 372 372 374 374 Total $ 790 $ 790 $ 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 March 31, 2024 Note payable $ — $ 25 $ — $ 25 6.900% senior debentures, due 2028 — 29 — 29 6.920% senior debentures, due 2028 — 416 — 416 6.125% senior notes, due 2034 — 399 — 399 Total $ — $ 869 $ — $ 869 At December 31, 2023 Note payable $ — $ 25 $ — $ 25 6.900% senior debentures, due 2028 — 29 — 29 6.920% senior debentures, due 2028 — 420 — 420 6.125% senior notes, due 2034 — 394 — 394 Total $ — $ 868 $ — $ 868 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 March 31, 2024 Life policy loans $ — $ — $ 40 $ 40 Deferred annuities — — 577 577 Structured settlements — 137 — 137 Total $ — $ 137 $ 577 $ 714 At December 31, 2023 Life policy loans $ — $ — $ 39 $ 39 Deferred annuities — — 603 603 Structured settlements — 141 — 141 Total $ — $ 141 $ 603 $ 744 Outstanding principal and interest for these life policy loans totaled $34 million and $33 million at March 31, 2024, and December 31, 2023, respectively. Recorded reserves for the deferred annuities were $631 million and $656 million at March 31, 2024, and December 31, 2023, respectively. Recorded reserves for the structured settlements were $122 million and $123 million at March 31, 2024, and December 31, 2023, respectively. |
Property Casualty Loss and Loss
Property Casualty Loss and Loss Expenses | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 2023 Gross loss and loss expense reserves, beginning of period $ 8,975 $ 8,336 Less reinsurance recoverable 362 405 Net loss and loss expense reserves, beginning of period 8,613 7,931 Net incurred loss and loss expenses related to: Current accident year 1,370 1,376 Prior accident years (100) (59) Total incurred 1,270 1,317 Net paid loss and loss expenses related to: Current accident year 205 187 Prior accident years 832 859 Total paid 1,037 1,046 Net loss and loss expense reserves, end of period 8,846 8,202 Plus reinsurance recoverable 332 424 Gross loss and loss expense reserves, end of period $ 9,178 $ 8,626 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 $68 million and $67 million at March 31, 2024, and 2023, respectively, for certain life and health loss and loss expense reserves. We experienced $100 million of favorable development on prior accident years, including $38 million of favorable development in commercial lines, $33 million of favorable development in personal lines and $3 million of favorable development in excess and surplus lines for the three months ended March 31, 2024. Within commercial lines, we recognized favorable reserve development of $22 million for the commercial property line and $12 million for the workers' compensation line 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 $25 million for the homeowner line and $5 million for the personal auto line. We experienced $59 million of favorable development on prior accident years, including $32 million of favorable development in commercial lines, $31 million of favorable development in personal lines and $9 million of favorable development in excess and surplus lines for the three months ended March 31, 2023. Within commercial lines, we recognized favorable reserve development of $16 million for the commercial property line and $15 million for |
Life Policy and Investment Cont
Life Policy and Investment Contract Reserves | 3 Months Ended |
Mar. 31, 2024 | |
Policyholder Account Balance [Abstract] | |
Life Policy and Investment Contract Reserves | Life Policy and Investment Contract Reserves We establish the reserves for traditional life policies including term, whole life and other products based on the present value of future benefits and claim expenses less the present value of future net premiums. Net premium is the portion of gross premium required to pro vide for all benefits and claim expenses. We estimate future benefits and claim expenses and net premium using certain cash flow assumptions including mortality, morbidity and lapse rates as well as a discount rate assumption. The cash flow assumptions are established based on our current expectations and are reviewed annually to determine any necessary updates. These 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 cash flow assumptions. The discount rate assumption is based on upper-medium grade fixed-income instrument yields (market value discount rates) and is updated quarterly. 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 our universal life, deferred annuity and other investment contracts 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) March 31, December 31, Life policy reserves: Term $ 1,054 $ 1,066 Whole life 418 434 Other 99 97 Subtotal 1,571 1,597 Investment contract reserves: Deferred annuities 631 656 Universal life 585 585 Structured settlements 122 123 Other 104 107 Subtotal 1,442 1,471 Total life policy and investment contract reserves $ 3,013 $ 3,068 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 March 31, 2024 2023 Term Whole life Term Whole life Present value of expected net premiums: Balance, beginning of period $ 1,700 $ 223 $ 1,643 $ 208 Beginning balance at original discount rate 1,712 225 1,708 217 Effect of changes in cash flow assumptions — — — — Effect of actual variances from expected experience (9) — (3) 1 Adjusted beginning of period balance 1,703 225 1,705 218 Issuances 35 5 38 7 Interest accrual 18 2 18 2 Net premiums collected (46) (7) (46) (7) Ending balance at original discount rate 1,710 225 1,715 220 Effect of changes in discount rate assumptions (50) (6) (16) (3) Balance, end of period 1,660 219 1,699 217 Present value of expected future policy benefits: Balance, beginning of period 2,751 657 2,584 614 Beginning balance at original discount rate 2,765 628 2,692 607 Effect of changes in cash flow assumptions — — — — Effect of actual variances from expected experience (14) — (2) 1 Adjusted beginning of period balance 2,751 628 2,690 608 Issuances 35 5 38 6 Interest accrual 31 8 30 8 Benefits paid (37) (8) (46) (8) Ending balance at original discount rate 2,780 633 2,712 614 Effect of changes in discount rate assumptions (82) 4 (21) 30 Balance, end of period 2,698 637 2,691 644 Net liability for future policy benefits: Present value of expected future policy benefits less expected net premiums 1,038 418 992 427 Impact of flooring at cohort level 16 — 19 — Net life policy reserves 1,054 418 1,011 427 Less reinsurance recoverable at original discount rate (100) (24) (96) (25) Less effect of discount rate assumption changes on reinsurance recoverable (8) (4) (10) (6) Net life policy reserves, after reinsurance recoverable $ 946 $ 390 $ 905 $ 396 Weighted-average duration of the net life policy reserves in years 11 16 12 16 The total impact of flooring at cohort level in the above tables includes the effect of discount rate assumption change s of $2 million and $5 million at March 31, 2024 and 2023, 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 March 31, 2024 2023 Undiscounted Discounted Undiscounted Discounted Term Expected future benefit payments $ 4,816 $ 2,698 $ 4,696 $ 2,691 Expected future gross premiums 4,386 2,601 4,470 2,674 Whole life Expected future benefit payments $ 1,660 $ 637 $ 1,586 $ 644 Expected future gross premiums 663 402 618 384 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 March 31, 2024 2023 Gross premiums Term $ 74 $ 73 Whole life 13 12 Total $ 87 $ 85 Interest accretion Term $ 13 $ 12 Whole life 6 6 Total $ 19 $ 18 Adverse development that resulted in an immediate charge to income due to net premiums exceeding gross premiums w as immaterial for the three months ended March 31, 2024, and 2023 . The following table shows the weighted-average interest rate for our term and whole life products : At March 31, 2024 2023 Term Interest accretion rate 5.26 % 5.32 % Current discount rate 5.09 4.81 Whole life Interest accretion rate 5.90 % 5.94 % Current discount rate 5.40 5.06 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 March 31, 2024 2023 Deferred annuity Universal life Deferred annuity Universal life Balance, beginning of period $ 656 $ 457 $ 734 $ 457 Premiums received 9 10 10 11 Policy charges — (10) — (10) Surrenders and withdrawals (37) (4) (36) (3) Benefit payments (3) (2) (3) (2) Interest credited 6 5 6 5 Balance, end of period $ 631 $ 456 $ 711 $ 458 Weighted average crediting rate 3.55 % 4.33 % 3.36 % 4.26 % Net amount at risk $ — $ 3,908 $ — $ 4,064 Cash surrender value 625 425 706 424 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 March 31, 2024 Deferred annuity 1.00-3.00% $ 4 $ 337 $ 15 $ 226 582 3.01-4.00% 49 — — — 49 Total $ 53 $ 337 $ 15 $ 226 $ 631 Universal life 1.00-3.00% $ — $ 60 $ 58 $ 4 $ 122 3.01-4.00% 49 5 — — 54 Greater than 4.00% 280 — — — 280 Total $ 329 $ 65 $ 58 $ 4 $ 456 At March 31, 2023 Deferred annuity 1.00-3.00% $ 9 $ 423 $ 17 $ 212 $ 661 3.01-4.00% 50 — — — 50 Total $ 59 $ 423 $ 17 $ 212 $ 711 Universal life 1.00-3.00% $ 60 $ 47 $ 9 $ 2 $ 118 3.01-4.00% 53 — — — 53 Greater than 4.00% 287 — — — 287 Total $ 400 $ 47 $ 9 $ 2 $ 458 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 March 31, 2024 2023 Balance, beginning of period $ 128 $ 121 Balance, beginning of period before shadow reserve adjustments 129 123 Effect of changes in cash flow assumptions — — Effect of actual variances from expected experience — (1) Adjusted beginning of period balance 129 122 Interest accrual 1 1 Excess death benefits (2) — Attributed assessments 3 3 Effect of changes in interest rate assumptions (1) 1 Balance, end of period before shadow reserve adjustments 130 127 Shadow reserve adjustments (1) (2) Balance, end of period 129 125 Less reinsurance recoverable, end of period 6 6 Net other additional liability, after reinsurance recoverable $ 135 $ 131 Weighted-average duration of the other additional liability in years 31 34 The following table shows balances and changes in separate accounts balances during the period: (Dollars in millions) Three months ended March 31, 2024 2023 Balance, beginning of period $ 925 $ 892 Interest credited before policy charges 10 10 Benefit payments — (2) Other (8) (1) Balance, end of period $ 927 $ 899 Cash surrender value $ 925 $ 896 |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 3 Months Ended |
Mar. 31, 2024 | |
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. 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. The table below shows the deferred policy acquisition costs and asset reconciliation. (Dollars in millions) Three months ended March 31, 2024 2023 Property casualty: Deferred policy acquisition costs asset, beginning of period $ 749 $ 682 Capitalized deferred policy acquisition costs 407 372 Amortized deferred policy acquisition costs (360) (340) Deferred policy acquisition costs asset, end of period $ 796 $ 714 Life: Deferred policy acquisition costs asset, beginning of period $ 344 $ 331 Capitalized deferred policy acquisition costs 10 11 Amortized deferred policy acquisition costs (7) (8) Deferred policy acquisition costs asset, end of period $ 347 $ 334 Consolidated: Deferred policy acquisition costs asset, beginning of period $ 1,093 $ 1,013 Capitalized deferred policy acquisition costs 417 383 Amortized deferred policy acquisition costs (367) (348) Deferred policy acquisition costs asset, end of period $ 1,143 $ 1,048 The table below shows the life deferred policy acquisition costs asset by product: (Dollars in millions) Three months ended March 31, 2024 Term Whole life Deferred annuity Universal life Total Balance, beginning of period $ 236 $ 48 $ 8 $ 52 $ 344 Capitalized deferred policy acquisition costs 8 2 — — 10 Amortized deferred policy acquisition costs (6) (1) — — (7) Balance, end of period $ 238 $ 49 $ 8 $ 52 $ 347 Three months ended March 31, 2023 Balance, beginning of period $ 228 $ 43 $ 7 $ 53 $ 331 Capitalized deferred policy acquisition costs 9 2 — — $ 11 Amortized deferred policy acquisition costs (6) (1) — (1) $ (8) Balance, end of period $ 231 $ 44 $ 7 $ 52 $ 334 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2024 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income 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 March 31, 2024 2023 Before tax Income tax Net Before tax Income tax Net Investments: AOCI, beginning of period $ (570) $ (123) $ (447) $ (847) $ (182) $ (665) OCI before investment gains and losses, net, recognized in net income (65) (13) (52) 163 35 128 Investment gains and losses, net, recognized in net income 10 2 8 — — — OCI (55) (11) (44) 163 35 128 AOCI, end of period $ (625) $ (134) $ (491) $ (684) $ (147) $ (537) Pension obligations: AOCI, beginning of period $ 30 $ 8 $ 22 $ 36 $ 9 $ 27 OCI excluding amortization recognized in net income — — — (5) (1) (4) Amortization recognized in net income — — — (1) — (1) OCI — — — (6) (1) (5) AOCI, end of period $ 30 $ 8 $ 22 $ 30 $ 8 $ 22 Life policy reserves, reinsurance recoverable and other: AOCI, beginning of period $ (13) $ (3) $ (10) $ 29 $ 5 $ 24 OCI before investment gains and losses, net, recognized in net income 47 10 37 (45) (9) (36) Investment gains and losses, net, recognized in net income — — — — — — OCI 47 10 37 (45) (9) (36) AOCI, end of period $ 34 $ 7 $ 27 $ (16) $ (4) $ (12) Summary of AOCI: AOCI, beginning of period $ (553) $ (118) $ (435) $ (782) $ (168) $ (614) Investments OCI (55) (11) (44) 163 35 128 Pension obligations OCI — — — (6) (1) (5) Life policy reserves, reinsurance recoverable and other OCI 47 10 37 (45) (9) (36) Total OCI (8) (1) (7) 112 25 87 AOCI, end of period $ (561) $ (119) $ (442) $ (670) $ (143) $ (527) Investment gains and losses, net, and other investment gains and losses, net, |
Reinsurance
Reinsurance | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 2023 Direct written premiums $ 2,125 $ 1,859 Assumed written premiums 239 244 Ceded written premiums (116) (84) Net written premiums $ 2,248 $ 2,019 Direct earned premiums $ 1,934 $ 1,760 Assumed earned premiums 152 159 Ceded earned premiums (94) (78) Earned premiums $ 1,992 $ 1,841 Direct incurred loss and loss expenses $ 1,193 $ 1,299 Assumed incurred loss and loss expenses 76 76 Ceded incurred loss and loss expenses 1 (58) Incurred loss and loss expenses $ 1,270 $ 1,317 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 March 31, 2024 2023 Direct earned premiums $ 99 $ 96 Ceded earned premiums (20) (19) Earned premiums $ 79 $ 77 Direct contract holders' benefits incurred 94 97 Ceded contract holders' benefits incurred (15) (16) Contract holders' benefits incurred $ 79 $ 81 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 | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 2023 Tax at statutory rate: $ 200 21.0 % $ 56 21.0 % Increase (decrease) resulting from: Tax-exempt income from municipal bonds (5) (0.5) (5) (1.9) Dividend received exclusion (5) (0.5) (5) (1.9) Other 8 0.8 (3) (1.2) Provision for income taxes $ 198 20.8 % $ 43 16.0 % The provision 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 and those related to Cincinnati Global Underwriting Ltd. SM (Cincinnati Global) will be realized. As a result, we have no valuation allowance for our U.S. domestic operations or Cincinnati Global at both March 31, 2024, and December 31, 2023. Cincinnati Global |
Net Income Per Common Share
Net Income Per Common Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share | Net Income Per Common Share Basic earnings per share are computed based on the weighted average number of common shares outstanding. Diluted earnings per share are computed based on the weighted average number of common and dilutive potential common shares outstanding using the treasury stock method. The table shows calculations for basic and diluted earnings per share: (In millions, except per share data) Three months ended March 31, 2024 2023 Numerator: Net income—basic and diluted $ 755 $ 225 Denominator: Basic weighted-average common shares outstanding 156.8 157.2 Effect of share-based awards: Stock options 0.7 0.8 Nonvested shares 0.4 0.5 Diluted weighted-average shares 157.9 158.5 Earnings per share: Basic $ 4.82 $ 1.43 Diluted $ 4.78 $ 1.42 Number of anti-dilutive share-based awards 1.3 1.0 The source of dilution of our common shares are certain equity-based awards. See our 2023 Annual Report on Form 10-K, Item 8, Note 17, Share-Based Associate Compensation Plans, Page 177, for information about share-based awards. The above table shows the number of anti-dilutive share-based awards for the three months ended March 31, 2024 and 2023. |
Employee Retirement Benefits
Employee Retirement Benefits | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 2023 Service cost $ 1 $ 1 Non-service (benefit) costs: Interest cost 3 3 Expected return on plan assets (5) (5) Amortization of actuarial loss and prior service cost — (1) Other — (5) Total non-service benefit (2) (8) Net periodic benefit $ (1) $ (7) See our 2023 Annual Report on Form 10-K, Item 8, Note 13, Employee Retirement Benefits, Page 170, 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 2024 and 2023. We made matching contributions totaling $9 million and $8 million to our 401(k) and Top Hat savings plans during the first quarter of 2024 and 2023, respectively. We m ade no con |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2024 | |
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 continues to vigorously defend them. 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 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. Most of these lawsuits have been dismissed, both by courts and by plaintiffs, but some have been appealed and a few others remain pending in trial courts. 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. On a quarterly basis, we review these outstanding matters. Under current accounting guidance, we establish accruals when it is probable that a covered loss has been incurred and we can reasonably estimate its potential exposure. The company accounts for such probable and estimable losses, if any, through the establishment of legal expense reserves. Based on our quarterly review, we believe that our accruals for probable and estimable losses are reasonable and that the amounts accrued do not have a material effect on our consolidated financial position, results of operations and cash flows. However, if any one or more of these matters results in a judgment against us or settlement for an amount that is significantly greater than the amount accrued, the resulting liability could have a material effect on the company’s consolidated financial position, results of operations and cash flows. Based on our most recent review, our estimate for any other matters for which the risk of loss is not probable, but more than remote, is immaterial. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We operate primarily in two industries, property casualty insurance and life insurance. Our CODM 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 2023 Annual Report on Form 10-K, Item 8, Note 18, Segment Information, Page 180, 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 March 31, 2024 2023 Revenues: Commercial lines insurance Commercial casualty $ 365 $ 377 Commercial property 336 299 Commercial auto 220 213 Workers' compensation 61 74 Other commercial 100 93 Commercial lines insurance premiums 1,082 1,056 Fee revenues 1 1 Total commercial lines insurance 1,083 1,057 Personal lines insurance Personal auto 208 166 Homeowner 303 232 Other personal 77 66 Personal lines insurance premiums 588 464 Fee revenues 1 1 Total personal lines insurance 589 465 Excess and surplus lines insurance 139 127 Fee revenues 1 — Total excess and surplus lines insurance 140 127 Life insurance premiums 79 77 Fee revenues 1 2 Total life insurance 80 79 Investments Investment income, net of expenses 245 210 Investment gains and losses, net 612 106 Total investment revenue 857 316 Other Premiums 183 194 Other 3 3 Total other revenues 186 197 Total revenues $ 2,935 $ 2,241 Income (loss) before income taxes: Insurance underwriting results Commercial lines insurance $ 39 $ (2) Personal lines insurance 37 (57) Excess and surplus lines insurance 12 13 Life insurance 10 8 Investments 826 286 Other 29 20 Total income before income taxes $ 953 $ 268 Identifiable assets: March 31, December 31, Property casualty insurance $ 5,298 $ 5,294 Life insurance 1,564 1,562 Investments 25,878 24,999 Other 987 914 Total $ 33,727 $ 32,769 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income | $ 755 | $ 225 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
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) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Pending Accounting Updates | Pending Accounting Updates ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 enhances reportable segment disclosures by requiring entities to disclose significant segment expenses that are regularly provided to the chief operating decision maker (CODM) and included within the reported measure of profit or loss. This ASU also requires disclosure of the title and position of the CODM as well as a description of how the reported measure of profit or loss is used to assess segment performance and allocate resources. The effective date of ASU 2023-07 is for annual reporting periods beginning after December 15, 2023, and interim reporting periods within annual periods beginning after December 15, 2024, and should be applied retrospectively to all prior periods presented. The ASU has not yet been adopted and will not have a material impact on our company’s consolidated financial position, results of operations or cash flows, but the ASU will require additional disclosures in our annual and interim financial statements. ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 enhances the transparency and decision usefulness of income tax disclosures by requiring entities to disclose specific categories within their rate reconciliation as well as additional items within those categories above a prescribed threshold. This ASU also requires disclosure of the amount of income taxes paid (net of refunds received) disaggregated by federal, state and foreign taxes as well as additional items within those categories above a prescribed threshold. The effective date of ASU 2023-09 is for annual reporting periods beginning after December 15, 2024, and should be applied prospectively with retrospective application permitted. The ASU has not yet been adopted and will not have a material impact on our company’s consolidated financial position, results of operations or cash flows, but the ASU will require additional disclosures in our annual financial statements |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 gains losses Fixed-maturity securities: Corporate $ 8,002 $ 60 $ 463 $ 7,599 States, municipalities and political subdivisions 4,872 28 232 4,668 Government-sponsored enterprises 1,424 1 4 1,421 Asset-backed 200 — 11 189 United States government 182 — 4 178 Foreign government 29 — — 29 Total $ 14,709 $ 89 $ 714 $ 14,084 At December 31, 2023 Fixed-maturity securities: Corporate $ 7,836 $ 70 $ 454 $ 7,452 States, municipalities and political subdivisions 4,867 44 208 4,703 Government-sponsored enterprises 1,227 3 6 1,224 Asset-backed 203 — 16 187 United States government 203 — 3 200 Foreign government 25 — — 25 Total $ 14,361 $ 117 $ 687 $ 13,791 |
Fair Value and Unrealized Losses by Investment Category and By the Duration of the Securities' Continuous Unrealized Loss Position | The table below provides fair values and gross unrealized losses by investment category and by the duration of the securities' continuous unrealized loss positions: (Dollars in millions) Less than 12 months 12 months or more Total At March 31, 2024 Fair Unrealized Fair Unrealized Fair Unrealized Fixed-maturity securities: Corporate $ 642 $ 13 $ 5,488 $ 450 $ 6,130 $ 463 States, municipalities and political subdivisions 1,099 9 1,900 223 2,999 232 Government-sponsored enterprises 396 1 168 3 564 4 Asset-backed 30 — 133 11 163 11 United States government 74 — 105 4 179 4 Foreign government 17 — 5 — 22 — Total $ 2,258 $ 23 $ 7,799 $ 691 $ 10,057 $ 714 At December 31, 2023 Fixed-maturity securities: Corporate $ 379 $ 13 $ 5,560 $ 441 $ 5,939 $ 454 States, municipalities and political subdivisions 313 2 1,932 206 2,245 208 Government-sponsored enterprises 652 3 113 3 765 6 Asset-backed 5 — 172 16 177 16 United States government 32 — 129 3 161 3 Foreign government 3 — 6 — 9 — Total $ 1,384 $ 18 $ 7,912 $ 669 $ 9,296 $ 687 |
Investments Classified by Contractual Maturity Date | Contractual maturity dates for fixed-maturities securities were: (Dollars in millions) Amortized Fair % of fair At March 31, 2024 Maturity dates: Due in one year or less $ 971 $ 963 6.8 % Due after one year through five years 4,413 4,300 30.5 Due after five years through ten years 3,553 3,427 24.3 Due after ten years 5,772 5,394 38.4 Total $ 14,709 $ 14,084 100.0 % |
Investment Income, Realized Investment Gains And Losses And Change In Unrealized Investment Gains And Losses | The following table provides investment income and investment gains and losses, net: (Dollars in millions) Three months ended March 31, 2024 2023 Investment income: Interest $ 169 $ 140 Dividends 72 66 Other 7 7 Total 248 213 Less investment expenses 3 3 Total $ 245 $ 210 Investment gains and losses, net: Equity securities: Investment gains and losses on securities sold, net $ (11) $ (1) Unrealized gains and losses on securities still held, net 613 106 Subtotal 602 105 Fixed-maturity securities: Gross realized gains — 1 Gross realized losses (1) (1) Change in allowance for credit losses, net (9) — Subtotal (10) — Other 20 1 Total $ 612 $ 106 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024, and December 31, 2023. We do not have any liabilities carried at fair value. (Dollars in millions) Level 1 Level 2 Level 3 Total At March 31, 2024 Fixed maturities, available for sale: Corporate $ — $ 7,599 $ — $ 7,599 States, municipalities and political subdivisions — 4,668 — 4,668 Government-sponsored enterprises — 1,421 — 1,421 Asset-backed — 189 — 189 United States government 178 — — 178 Foreign government — 29 — 29 Subtotal 178 13,906 — 14,084 Common equities 11,203 — — 11,203 Nonredeemable preferred equities — 354 — 354 Separate accounts taxable fixed maturities — 866 — 866 Top Hat savings plan mutual funds and common 78 — — 78 Total $ 11,459 $ 15,126 $ — $ 26,585 At December 31, 2023 Fixed maturities, available for sale: Corporate $ — $ 7,452 $ — $ 7,452 States, municipalities and political subdivisions — 4,703 — 4,703 Government-sponsored enterprises — 1,224 — 1,224 Asset-backed — 187 — 187 United States government 200 — — 200 Foreign government — 25 — 25 Subtotal 200 13,591 — 13,791 Common equities 10,641 — — 10,641 Nonredeemable preferred equities — 348 — 348 Separate accounts taxable fixed maturities — 854 — 854 Top Hat savings plan mutual funds and common 67 — — 67 Total $ 10,908 $ 14,793 $ — $ 25,701 |
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 March 31, December 31, March 31, December 31, 2024 2023 2024 2023 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 372 372 374 374 Total $ 790 $ 790 $ 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 March 31, 2024 Note payable $ — $ 25 $ — $ 25 6.900% senior debentures, due 2028 — 29 — 29 6.920% senior debentures, due 2028 — 416 — 416 6.125% senior notes, due 2034 — 399 — 399 Total $ — $ 869 $ — $ 869 At December 31, 2023 Note payable $ — $ 25 $ — $ 25 6.900% senior debentures, due 2028 — 29 — 29 6.920% senior debentures, due 2028 — 420 — 420 6.125% senior notes, due 2034 — 394 — 394 Total $ — $ 868 $ — $ 868 |
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 March 31, 2024 Life policy loans $ — $ — $ 40 $ 40 Deferred annuities — — 577 577 Structured settlements — 137 — 137 Total $ — $ 137 $ 577 $ 714 At December 31, 2023 Life policy loans $ — $ — $ 39 $ 39 Deferred annuities — — 603 603 Structured settlements — 141 — 141 Total $ — $ 141 $ 603 $ 744 |
Property Casualty Loss and Lo_2
Property Casualty Loss and Loss Expenses (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 2023 Gross loss and loss expense reserves, beginning of period $ 8,975 $ 8,336 Less reinsurance recoverable 362 405 Net loss and loss expense reserves, beginning of period 8,613 7,931 Net incurred loss and loss expenses related to: Current accident year 1,370 1,376 Prior accident years (100) (59) Total incurred 1,270 1,317 Net paid loss and loss expenses related to: Current accident year 205 187 Prior accident years 832 859 Total paid 1,037 1,046 Net loss and loss expense reserves, end of period 8,846 8,202 Plus reinsurance recoverable 332 424 Gross loss and loss expense reserves, end of period $ 9,178 $ 8,626 |
Life Policy and Investment Co_2
Life Policy and Investment Contract Reserves (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Policyholder Account Balance [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) March 31, December 31, Life policy reserves: Term $ 1,054 $ 1,066 Whole life 418 434 Other 99 97 Subtotal 1,571 1,597 Investment contract reserves: Deferred annuities 631 656 Universal life 585 585 Structured settlements 122 123 Other 104 107 Subtotal 1,442 1,471 Total life policy and investment contract reserves $ 3,013 $ 3,068 |
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 March 31, 2024 2023 Term Whole life Term Whole life Present value of expected net premiums: Balance, beginning of period $ 1,700 $ 223 $ 1,643 $ 208 Beginning balance at original discount rate 1,712 225 1,708 217 Effect of changes in cash flow assumptions — — — — Effect of actual variances from expected experience (9) — (3) 1 Adjusted beginning of period balance 1,703 225 1,705 218 Issuances 35 5 38 7 Interest accrual 18 2 18 2 Net premiums collected (46) (7) (46) (7) Ending balance at original discount rate 1,710 225 1,715 220 Effect of changes in discount rate assumptions (50) (6) (16) (3) Balance, end of period 1,660 219 1,699 217 Present value of expected future policy benefits: Balance, beginning of period 2,751 657 2,584 614 Beginning balance at original discount rate 2,765 628 2,692 607 Effect of changes in cash flow assumptions — — — — Effect of actual variances from expected experience (14) — (2) 1 Adjusted beginning of period balance 2,751 628 2,690 608 Issuances 35 5 38 6 Interest accrual 31 8 30 8 Benefits paid (37) (8) (46) (8) Ending balance at original discount rate 2,780 633 2,712 614 Effect of changes in discount rate assumptions (82) 4 (21) 30 Balance, end of period 2,698 637 2,691 644 Net liability for future policy benefits: Present value of expected future policy benefits less expected net premiums 1,038 418 992 427 Impact of flooring at cohort level 16 — 19 — Net life policy reserves 1,054 418 1,011 427 Less reinsurance recoverable at original discount rate (100) (24) (96) (25) Less effect of discount rate assumption changes on reinsurance recoverable (8) (4) (10) (6) Net life policy reserves, after reinsurance recoverable $ 946 $ 390 $ 905 $ 396 Weighted-average duration of the net life policy reserves in years 11 16 12 16 The total impact of flooring at cohort level in the above tables includes the effect of discount rate assumption change s of $2 million and $5 million at March 31, 2024 and 2023, 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 March 31, 2024 2023 Undiscounted Discounted Undiscounted Discounted Term Expected future benefit payments $ 4,816 $ 2,698 $ 4,696 $ 2,691 Expected future gross premiums 4,386 2,601 4,470 2,674 Whole life Expected future benefit payments $ 1,660 $ 637 $ 1,586 $ 644 Expected future gross premiums 663 402 618 384 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 March 31, 2024 2023 Gross premiums Term $ 74 $ 73 Whole life 13 12 Total $ 87 $ 85 Interest accretion Term $ 13 $ 12 Whole life 6 6 Total $ 19 $ 18 Adverse development that resulted in an immediate charge to income due to net premiums exceeding gross premiums w as immaterial for the three months ended March 31, 2024, and 2023 . The following table shows the weighted-average interest rate for our term and whole life products : At March 31, 2024 2023 Term Interest accretion rate 5.26 % 5.32 % Current discount rate 5.09 4.81 Whole life Interest accretion rate 5.90 % 5.94 % Current discount rate 5.40 5.06 The discount rate assumption was developed by calculating forward rates from market yield curves of upper-medium grade fixed-income instruments. |
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 March 31, 2024 2023 Deferred annuity Universal life Deferred annuity Universal life Balance, beginning of period $ 656 $ 457 $ 734 $ 457 Premiums received 9 10 10 11 Policy charges — (10) — (10) Surrenders and withdrawals (37) (4) (36) (3) Benefit payments (3) (2) (3) (2) Interest credited 6 5 6 5 Balance, end of period $ 631 $ 456 $ 711 $ 458 Weighted average crediting rate 3.55 % 4.33 % 3.36 % 4.26 % Net amount at risk $ — $ 3,908 $ — $ 4,064 Cash surrender value 625 425 706 424 |
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 March 31, 2024 Deferred annuity 1.00-3.00% $ 4 $ 337 $ 15 $ 226 582 3.01-4.00% 49 — — — 49 Total $ 53 $ 337 $ 15 $ 226 $ 631 Universal life 1.00-3.00% $ — $ 60 $ 58 $ 4 $ 122 3.01-4.00% 49 5 — — 54 Greater than 4.00% 280 — — — 280 Total $ 329 $ 65 $ 58 $ 4 $ 456 At March 31, 2023 Deferred annuity 1.00-3.00% $ 9 $ 423 $ 17 $ 212 $ 661 3.01-4.00% 50 — — — 50 Total $ 59 $ 423 $ 17 $ 212 $ 711 Universal life 1.00-3.00% $ 60 $ 47 $ 9 $ 2 $ 118 3.01-4.00% 53 — — — 53 Greater than 4.00% 287 — — — 287 Total $ 400 $ 47 $ 9 $ 2 $ 458 |
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 March 31, 2024 2023 Balance, beginning of period $ 128 $ 121 Balance, beginning of period before shadow reserve adjustments 129 123 Effect of changes in cash flow assumptions — — Effect of actual variances from expected experience — (1) Adjusted beginning of period balance 129 122 Interest accrual 1 1 Excess death benefits (2) — Attributed assessments 3 3 Effect of changes in interest rate assumptions (1) 1 Balance, end of period before shadow reserve adjustments 130 127 Shadow reserve adjustments (1) (2) Balance, end of period 129 125 Less reinsurance recoverable, end of period 6 6 Net other additional liability, after reinsurance recoverable $ 135 $ 131 Weighted-average duration of the other additional liability in years 31 34 |
Separate Account, Liability | The following table shows balances and changes in separate accounts balances during the period: (Dollars in millions) Three months ended March 31, 2024 2023 Balance, beginning of period $ 925 $ 892 Interest credited before policy charges 10 10 Benefit payments — (2) Other (8) (1) Balance, end of period $ 927 $ 899 Cash surrender value $ 925 $ 896 |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 2023 Property casualty: Deferred policy acquisition costs asset, beginning of period $ 749 $ 682 Capitalized deferred policy acquisition costs 407 372 Amortized deferred policy acquisition costs (360) (340) Deferred policy acquisition costs asset, end of period $ 796 $ 714 Life: Deferred policy acquisition costs asset, beginning of period $ 344 $ 331 Capitalized deferred policy acquisition costs 10 11 Amortized deferred policy acquisition costs (7) (8) Deferred policy acquisition costs asset, end of period $ 347 $ 334 Consolidated: Deferred policy acquisition costs asset, beginning of period $ 1,093 $ 1,013 Capitalized deferred policy acquisition costs 417 383 Amortized deferred policy acquisition costs (367) (348) Deferred policy acquisition costs asset, end of period $ 1,143 $ 1,048 |
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 March 31, 2024 Term Whole life Deferred annuity Universal life Total Balance, beginning of period $ 236 $ 48 $ 8 $ 52 $ 344 Capitalized deferred policy acquisition costs 8 2 — — 10 Amortized deferred policy acquisition costs (6) (1) — — (7) Balance, end of period $ 238 $ 49 $ 8 $ 52 $ 347 Three months ended March 31, 2023 Balance, beginning of period $ 228 $ 43 $ 7 $ 53 $ 331 Capitalized deferred policy acquisition costs 9 2 — — $ 11 Amortized deferred policy acquisition costs (6) (1) — (1) $ (8) Balance, end of period $ 231 $ 44 $ 7 $ 52 $ 334 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 2023 Before tax Income tax Net Before tax Income tax Net Investments: AOCI, beginning of period $ (570) $ (123) $ (447) $ (847) $ (182) $ (665) OCI before investment gains and losses, net, recognized in net income (65) (13) (52) 163 35 128 Investment gains and losses, net, recognized in net income 10 2 8 — — — OCI (55) (11) (44) 163 35 128 AOCI, end of period $ (625) $ (134) $ (491) $ (684) $ (147) $ (537) Pension obligations: AOCI, beginning of period $ 30 $ 8 $ 22 $ 36 $ 9 $ 27 OCI excluding amortization recognized in net income — — — (5) (1) (4) Amortization recognized in net income — — — (1) — (1) OCI — — — (6) (1) (5) AOCI, end of period $ 30 $ 8 $ 22 $ 30 $ 8 $ 22 Life policy reserves, reinsurance recoverable and other: AOCI, beginning of period $ (13) $ (3) $ (10) $ 29 $ 5 $ 24 OCI before investment gains and losses, net, recognized in net income 47 10 37 (45) (9) (36) Investment gains and losses, net, recognized in net income — — — — — — OCI 47 10 37 (45) (9) (36) AOCI, end of period $ 34 $ 7 $ 27 $ (16) $ (4) $ (12) Summary of AOCI: AOCI, beginning of period $ (553) $ (118) $ (435) $ (782) $ (168) $ (614) Investments OCI (55) (11) (44) 163 35 128 Pension obligations OCI — — — (6) (1) (5) Life policy reserves, reinsurance recoverable and other OCI 47 10 37 (45) (9) (36) Total OCI (8) (1) (7) 112 25 87 AOCI, end of period $ (561) $ (119) $ (442) $ (670) $ (143) $ (527) |
Reinsurance (Tables)
Reinsurance (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 2023 Direct written premiums $ 2,125 $ 1,859 Assumed written premiums 239 244 Ceded written premiums (116) (84) Net written premiums $ 2,248 $ 2,019 Direct earned premiums $ 1,934 $ 1,760 Assumed earned premiums 152 159 Ceded earned premiums (94) (78) Earned premiums $ 1,992 $ 1,841 Direct incurred loss and loss expenses $ 1,193 $ 1,299 Assumed incurred loss and loss expenses 76 76 Ceded incurred loss and loss expenses 1 (58) Incurred loss and loss expenses $ 1,270 $ 1,317 |
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 March 31, 2024 2023 Direct earned premiums $ 99 $ 96 Ceded earned premiums (20) (19) Earned premiums $ 79 $ 77 Direct contract holders' benefits incurred 94 97 Ceded contract holders' benefits incurred (15) (16) Contract holders' benefits incurred $ 79 $ 81 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 2023 Tax at statutory rate: $ 200 21.0 % $ 56 21.0 % Increase (decrease) resulting from: Tax-exempt income from municipal bonds (5) (0.5) (5) (1.9) Dividend received exclusion (5) (0.5) (5) (1.9) Other 8 0.8 (3) (1.2) Provision for income taxes $ 198 20.8 % $ 43 16.0 % |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 2023 Numerator: Net income—basic and diluted $ 755 $ 225 Denominator: Basic weighted-average common shares outstanding 156.8 157.2 Effect of share-based awards: Stock options 0.7 0.8 Nonvested shares 0.4 0.5 Diluted weighted-average shares 157.9 158.5 Earnings per share: Basic $ 4.82 $ 1.43 Diluted $ 4.78 $ 1.42 Number of anti-dilutive share-based awards 1.3 1.0 |
Employee Retirement Benefits (T
Employee Retirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 2023 Service cost $ 1 $ 1 Non-service (benefit) costs: Interest cost 3 3 Expected return on plan assets (5) (5) Amortization of actuarial loss and prior service cost — (1) Other — (5) Total non-service benefit (2) (8) Net periodic benefit $ (1) $ (7) |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Segment Information | Segment information is summarized in the following table: (Dollars in millions) Three months ended March 31, 2024 2023 Revenues: Commercial lines insurance Commercial casualty $ 365 $ 377 Commercial property 336 299 Commercial auto 220 213 Workers' compensation 61 74 Other commercial 100 93 Commercial lines insurance premiums 1,082 1,056 Fee revenues 1 1 Total commercial lines insurance 1,083 1,057 Personal lines insurance Personal auto 208 166 Homeowner 303 232 Other personal 77 66 Personal lines insurance premiums 588 464 Fee revenues 1 1 Total personal lines insurance 589 465 Excess and surplus lines insurance 139 127 Fee revenues 1 — Total excess and surplus lines insurance 140 127 Life insurance premiums 79 77 Fee revenues 1 2 Total life insurance 80 79 Investments Investment income, net of expenses 245 210 Investment gains and losses, net 612 106 Total investment revenue 857 316 Other Premiums 183 194 Other 3 3 Total other revenues 186 197 Total revenues $ 2,935 $ 2,241 Income (loss) before income taxes: Insurance underwriting results Commercial lines insurance $ 39 $ (2) Personal lines insurance 37 (57) Excess and surplus lines insurance 12 13 Life insurance 10 8 Investments 826 286 Other 29 20 Total income before income taxes $ 953 $ 268 Identifiable assets: March 31, December 31, Property casualty insurance $ 5,298 $ 5,294 Life insurance 1,564 1,562 Investments 25,878 24,999 Other 987 914 Total $ 33,727 $ 32,769 |
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 | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-sale | ||
Total | $ 14,709 | $ 14,361 |
Gross unrealized gain | 89 | 117 |
Gross unrealized loss | 714 | 687 |
Fixed maturities, at fair value | 14,084 | 13,791 |
Corporate | ||
Debt Securities, Available-for-sale | ||
Total | 8,002 | 7,836 |
Gross unrealized gain | 60 | 70 |
Gross unrealized loss | 463 | 454 |
Fixed maturities, at fair value | 7,599 | 7,452 |
States, municipalities and political subdivisions | ||
Debt Securities, Available-for-sale | ||
Total | 4,872 | 4,867 |
Gross unrealized gain | 28 | 44 |
Gross unrealized loss | 232 | 208 |
Fixed maturities, at fair value | 4,668 | 4,703 |
Government-sponsored enterprises | ||
Debt Securities, Available-for-sale | ||
Total | 1,424 | 1,227 |
Gross unrealized gain | 1 | 3 |
Gross unrealized loss | 4 | 6 |
Fixed maturities, at fair value | 1,421 | 1,224 |
Asset-backed | ||
Debt Securities, Available-for-sale | ||
Total | 200 | 203 |
Gross unrealized gain | 0 | 0 |
Gross unrealized loss | 11 | 16 |
Fixed maturities, at fair value | 189 | 187 |
United States government | ||
Debt Securities, Available-for-sale | ||
Total | 182 | 203 |
Gross unrealized gain | 0 | 0 |
Gross unrealized loss | 4 | 3 |
Fixed maturities, at fair value | 178 | 200 |
Foreign government | ||
Debt Securities, Available-for-sale | ||
Total | 29 | 25 |
Gross unrealized gain | 0 | 0 |
Gross unrealized loss | 0 | 0 |
Fixed maturities, at fair value | $ 29 | $ 25 |
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 | Mar. 31, 2024 | Dec. 31, 2023 |
Investments, Unrealized Loss Position | ||
Less than 12 months Fair Value | $ 2,258 | $ 1,384 |
Less than 12 Months, Unrealized Loss | 23 | 18 |
12 months or more, Fair Value | 7,799 | 7,912 |
12 months or longer, Unrealized Loss | 691 | 669 |
Total Fair Value | 10,057 | 9,296 |
Total Unrealized Losses | 714 | 687 |
Corporate | ||
Investments, Unrealized Loss Position | ||
Less than 12 months Fair Value | 642 | 379 |
Less than 12 Months, Unrealized Loss | 13 | 13 |
12 months or more, Fair Value | 5,488 | 5,560 |
12 months or longer, Unrealized Loss | 450 | 441 |
Total Fair Value | 6,130 | 5,939 |
Total Unrealized Losses | 463 | 454 |
States, municipalities and political subdivisions | ||
Investments, Unrealized Loss Position | ||
Less than 12 months Fair Value | 1,099 | 313 |
Less than 12 Months, Unrealized Loss | 9 | 2 |
12 months or more, Fair Value | 1,900 | 1,932 |
12 months or longer, Unrealized Loss | 223 | 206 |
Total Fair Value | 2,999 | 2,245 |
Total Unrealized Losses | 232 | 208 |
Government-sponsored enterprises | ||
Investments, Unrealized Loss Position | ||
Less than 12 months Fair Value | 396 | 652 |
Less than 12 Months, Unrealized Loss | 1 | 3 |
12 months or more, Fair Value | 168 | 113 |
12 months or longer, Unrealized Loss | 3 | 3 |
Total Fair Value | 564 | 765 |
Total Unrealized Losses | 4 | 6 |
Asset-backed | ||
Investments, Unrealized Loss Position | ||
Less than 12 months Fair Value | 30 | 5 |
Less than 12 Months, Unrealized Loss | 0 | 0 |
12 months or more, Fair Value | 133 | 172 |
12 months or longer, Unrealized Loss | 11 | 16 |
Total Fair Value | 163 | 177 |
Total Unrealized Losses | 11 | 16 |
United States government | ||
Investments, Unrealized Loss Position | ||
Less than 12 months Fair Value | 74 | 32 |
Less than 12 Months, Unrealized Loss | 0 | 0 |
12 months or more, Fair Value | 105 | 129 |
12 months or longer, Unrealized Loss | 4 | 3 |
Total Fair Value | 179 | 161 |
Total Unrealized Losses | 4 | 3 |
Foreign government | ||
Investments, Unrealized Loss Position | ||
Less than 12 months Fair Value | 17 | 3 |
Less than 12 Months, Unrealized Loss | 0 | 0 |
12 months or more, Fair Value | 5 | 6 |
12 months or longer, Unrealized Loss | 0 | 0 |
Total Fair Value | 22 | 9 |
Total Unrealized Losses | $ 0 | $ 0 |
Investments - Schedule of Contr
Investments - Schedule of Contractual Maturities of Investments (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Amortized cost | ||
Due in one year or less | $ 971 | |
Due after one year through five years | 4,413 | |
Due after five years through ten years | 3,553 | |
Due after ten years | 5,772 | |
Total | 14,709 | $ 14,361 |
Fair value | ||
Due in one year or less | 963 | |
Due after one year through five years | 4,300 | |
Due after five years through ten years | 3,427 | |
Due after ten years | 5,394 | |
Total | $ 14,084 | $ 13,791 |
% of fair value | ||
Due in one year or less | 6.80% | |
Due after one year through five years | 30.50% | |
Due after five years through ten years | 24.30% | |
Due after ten years | 38.40% | |
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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Investment income: | ||
Interest | $ 169 | $ 140 |
Dividends | 72 | 66 |
Other | 7 | 7 |
Total | 248 | 213 |
Less investment expenses | 3 | 3 |
Total | 245 | 210 |
Investment gains and losses, net | ||
Change in allowance for credit losses, net | (9) | 0 |
Other | 20 | 1 |
Total | 612 | 106 |
Equity securities | ||
Investment gains and losses, net | ||
Investment gains and losses on securities sold, net | (11) | (1) |
Unrealized gains and losses on securities still held, net | 613 | 106 |
Total | 602 | 105 |
Fixed maturities | ||
Investment gains and losses, net | ||
Gross realized gains | 0 | 1 |
Gross realized losses | (1) | (1) |
Total | $ (10) | $ 0 |
Investments - (Narrative) (Deta
Investments - (Narrative) (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 USD ($) security | Dec. 31, 2023 USD ($) security | |
Investments [Abstract] | ||
Equity Securities at Fair Value | $ 11,557 | $ 10,989 |
Fair value of largest single common stock holding | $ 942 | $ 842 |
Largest equity holdings to total equity portfolio | 8.40% | 7.90% |
Largest equity holdings to total investment portfolio | 3.70% | 3.40% |
Allowance for credit loss on fixed-maturity | $ 27 | $ 18 |
Number of fixed-maturity securities in a total unrealized loss position | security | 3,329 | 2,840 |
Fixed-maturity securities, total unrealized loss | $ 714 | $ 687 |
Number of fixed-maturity securities in continuous unrealized loss position and below 70 percent of amortized cost | 12 | 20 |
Fixed maturity investments, Percentage of amortized costs | 70% |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Hierarchy for Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | $ 14,084 | $ 13,791 |
Fair value of asset | 26,585 | 25,701 |
Separate accounts | 927 | 925 |
Top Hat savings plan mutual funds and common equity (included in Other assets) | 78 | 67 |
Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 7,599 | 7,452 |
States, municipalities and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 4,668 | 4,703 |
Government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 1,421 | 1,224 |
Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 189 | 187 |
United States government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 178 | 200 |
Foreign government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 29 | 25 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 178 | 200 |
Fair value of asset | 11,459 | 10,908 |
Top Hat savings plan mutual funds and common equity (included in Other assets) | 78 | 67 |
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 | Asset-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 | 178 | 200 |
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 | 13,906 | 13,591 |
Fair value of asset | 15,126 | 14,793 |
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 | 7,599 | 7,452 |
Level 2 | States, municipalities and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 4,668 | 4,703 |
Level 2 | Government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 1,421 | 1,224 |
Level 2 | Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 189 | 187 |
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 | 29 | 25 |
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 | Asset-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 | 11,203 | 10,641 |
Equity securities | Nonredeemable preferred equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of asset | 354 | 348 |
Equity securities | Level 1 | Common equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of asset | 11,203 | 10,641 |
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 | 354 | 348 |
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 | 866 | 854 |
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 | 866 | 854 |
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 - (Narr
Fair Value Measurements - (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and Cash Equivalents, Fair Value Disclosure | $ 619 | $ 907 |
Finance receivable | 106 | 108 |
Life policy and investment contract reserves | 3,013 | 3,068 |
Life Policy Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Finance receivable | 34 | 33 |
Investment contract reserves: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Life policy and investment contract reserves | 1,442 | 1,471 |
Investment contract reserves: | Deferred Fixed Annuity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Life policy and investment contract reserves | 631 | 656 |
Investment contract reserves: | Structured Settlement Annuity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Life policy and investment contract reserves | $ 122 | $ 123 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Book Value and Principal Amounts of Long-Term Debt (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | ||
Book value | $ 790 | $ 790 |
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 | $ 372 | $ 372 |
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 | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of note payable | $ 25 | $ 25 |
Total | $ 869 | $ 868 |
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 | $ 416 | $ 420 |
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 | $ 399 | $ 394 |
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 | 25 |
Total | 869 | 868 |
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 | 416 | 420 |
Level 2 | Senior Notes 6.125 % Due 2034 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of senior debt | 399 | 394 |
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 | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of life policy loans | $ 40 | $ 39 |
Liabilities Related to Investment Contracts, Fair Value Disclosure | 714 | 744 |
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 | 137 | 141 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of life policy loans | 40 | 39 |
Liabilities Related to Investment Contracts, Fair Value Disclosure | 577 | 603 |
Deferred annuities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities Related to Investment Contracts, Fair Value Disclosure | 577 | 603 |
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 | 577 | 603 |
Structured settlements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities Related to Investment Contracts, Fair Value Disclosure | 137 | 141 |
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 | 137 | 141 |
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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Summary of Consolidated Property Casualty Loss and Loss Expense Reserves [Roll Forward] | ||
Gross loss and loss expense reserves, beginning of period | $ 9,050 | |
Prior accident years | (100) | $ (59) |
Gross loss and loss expense reserves, end of period | 9,246 | |
Property and Casualty Insurance | ||
Summary of Consolidated Property Casualty Loss and Loss Expense Reserves [Roll Forward] | ||
Gross loss and loss expense reserves, beginning of period | 8,975 | 8,336 |
Less reinsurance recoverable | 362 | 405 |
Net loss and loss expense reserves, beginning of period | 8,613 | 7,931 |
Current accident year | 1,370 | 1,376 |
Prior accident years | (100) | (59) |
Total incurred | 1,270 | 1,317 |
Current accident year | 205 | 187 |
Prior accident years | 832 | 859 |
Total paid | 1,037 | 1,046 |
Net loss and loss expense reserves, end of period | 8,846 | 8,202 |
Plus reinsurance recoverable | 332 | 424 |
Gross loss and loss expense reserves, end of period | $ 9,178 | $ 8,626 |
Property Casualty Loss and Lo_4
Property Casualty Loss and Loss Expenses - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters | |||
Reserve for loss and loss expenses | $ 9,246 | $ 9,050 | |
Prior accident years | (100) | $ (59) | |
Life Insurance Segment | |||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters | |||
Reserve for loss and loss expenses | 68 | 67 | |
Commercial Insurance | |||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters | |||
Prior accident years | (38) | (32) | |
Commercial Insurance | Commercial Property Line | |||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters | |||
Prior accident years | (22) | (16) | |
Commercial Insurance | Workers' Compensation Line | |||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters | |||
Prior accident years | (12) | (15) | |
Personal Insurance | |||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters | |||
Prior accident years | (33) | (31) | |
Personal Insurance | Homeowner | |||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters | |||
Prior accident years | (25) | (27) | |
Personal Insurance | Personal Auto | |||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters | |||
Prior accident years | (5) | ||
Excess and Surplus Lines Insurance | |||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters | |||
Prior accident years | $ (3) | $ (9) |
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 | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Liability for Future Policy Benefit, by Product Segment | |||
Life policy and investment contract reserves | $ 3,013 | $ 3,068 | |
Life policy reserves: | |||
Liability for Future Policy Benefit, by Product Segment | |||
Life policy and investment contract reserves | 1,571 | 1,597 | |
Investment contract reserves: | |||
Liability for Future Policy Benefit, by Product Segment | |||
Life policy and investment contract reserves | 1,442 | 1,471 | |
Term Life Insurance | Life policy reserves: | |||
Liability for Future Policy Benefit, by Product Segment | |||
Life policy and investment contract reserves | 1,054 | 1,066 | $ 1,011 |
Whole Life Insurance | Life policy reserves: | |||
Liability for Future Policy Benefit, by Product Segment | |||
Life policy and investment contract reserves | 418 | 434 | $ 427 |
Long-Duration Insurance, Other | Life policy reserves: | |||
Liability for Future Policy Benefit, by Product Segment | |||
Life policy and investment contract reserves | 99 | 97 | |
Long-Duration Insurance, Other | Investment contract reserves: | |||
Liability for Future Policy Benefit, by Product Segment | |||
Life policy and investment contract reserves | 104 | 107 | |
Deferred Fixed Annuity | Investment contract reserves: | |||
Liability for Future Policy Benefit, by Product Segment | |||
Life policy and investment contract reserves | 631 | 656 | |
Universal life | Investment contract reserves: | |||
Liability for Future Policy Benefit, by Product Segment | |||
Life policy and investment contract reserves | 585 | 585 | |
Structured Settlement Annuity | Investment contract reserves: | |||
Liability for Future Policy Benefit, by Product Segment | |||
Life policy and investment contract reserves | $ 122 | $ 123 |
Liability for Future Policy Ben
Liability for Future Policy Benefit (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Net liability for future policy benefits: | |||
Net life policy reserves | $ 3,013 | $ 3,068 | |
Life policy reserves: | |||
Net liability for future policy benefits: | |||
Net life policy reserves | 1,571 | 1,597 | |
Term Life Insurance | Life policy reserves: | |||
Present value of expected net premiums: | |||
Balance, beginning of period | 1,700 | $ 1,643 | |
Beginning balance at original discount rate | 1,712 | 1,708 | |
Effect of changes in cash flow assumptions | 0 | 0 | |
Effect of changes in cash flow assumptions | (9) | (3) | |
Adjusted beginning of period balance | 1,703 | 1,705 | |
Issuances | 35 | 38 | |
Interest accrual | 18 | 18 | |
Net premiums collected | (46) | (46) | |
Ending balance at original discount rate | 1,710 | 1,715 | |
Effect of changes in discount rate assumptions | (50) | (16) | |
Balance, end of period | 1,660 | 1,699 | |
Present value of expected future policy benefits: | |||
Balance, beginning of period | 2,751 | 2,584 | |
Effect of changes in cash flow assumptions | 2,765 | 2,692 | |
Effect of changes in cash flow assumptions | 0 | 0 | |
Effect of changes in cash flow assumptions | (14) | (2) | |
Adjusted beginning of period balance | 2,751 | 2,690 | |
Issuances | 35 | 38 | |
Interest accrual | 31 | 30 | |
Benefits paid | (37) | (46) | |
Ending balance at original discount rate | 2,780 | 2,712 | |
Effect of changes in discount rate assumptions | (82) | (21) | |
Balance, end of period | 2,698 | 2,691 | |
Net liability for future policy benefits: | |||
Present value of expected future policy benefits less expected net premiums | 1,038 | 992 | |
Impact of flooring at cohort level | 16 | 19 | |
Net life policy reserves | 1,054 | 1,011 | 1,066 |
Less reinsurance recoverable at original discount rate | (100) | (96) | |
Less effect of discount rate assumption changes on reinsurance recoverable | (8) | (10) | |
Net life policy reserves, after reinsurance recoverable | $ 946 | $ 905 | |
Weighted-average duration of the net life policy reserves in years | 11 years | 12 years | |
Whole Life Insurance | Life policy reserves: | |||
Present value of expected net premiums: | |||
Balance, beginning of period | $ 223 | $ 208 | |
Beginning balance at original discount rate | 225 | 217 | |
Effect of changes in cash flow assumptions | 0 | 0 | |
Effect of changes in cash flow assumptions | 0 | 1 | |
Adjusted beginning of period balance | 225 | 218 | |
Issuances | 5 | 7 | |
Interest accrual | 2 | 2 | |
Net premiums collected | (7) | (7) | |
Ending balance at original discount rate | 225 | 220 | |
Effect of changes in discount rate assumptions | (6) | (3) | |
Balance, end of period | 219 | 217 | |
Present value of expected future policy benefits: | |||
Balance, beginning of period | 657 | 614 | |
Effect of changes in cash flow assumptions | 628 | 607 | |
Effect of changes in cash flow assumptions | 0 | 0 | |
Effect of changes in cash flow assumptions | 0 | 1 | |
Adjusted beginning of period balance | 628 | 608 | |
Issuances | 5 | 6 | |
Interest accrual | 8 | 8 | |
Benefits paid | (8) | (8) | |
Ending balance at original discount rate | 633 | 614 | |
Effect of changes in discount rate assumptions | 4 | 30 | |
Balance, end of period | 637 | 644 | |
Net liability for future policy benefits: | |||
Present value of expected future policy benefits less expected net premiums | 418 | 427 | |
Impact of flooring at cohort level | 0 | 0 | |
Net life policy reserves | 418 | 427 | $ 434 |
Less reinsurance recoverable at original discount rate | (24) | (25) | |
Less effect of discount rate assumption changes on reinsurance recoverable | (4) | (6) | |
Net life policy reserves, after reinsurance recoverable | $ 390 | $ 396 | |
Weighted-average duration of the net life policy reserves in years | 16 years | 16 years |
Life Policy and Investment Co_3
Life Policy and Investment Contract Reserves (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Life policy reserves: | ||
Liability for Future Policy Benefit, after Reinsurance [Abstract] | ||
Discount Rate Assumption Changes included in Impact of flooring at Cohort Level | $ 2,000,000 | $ 5,000,000 |
Life Insurance Segment | ||
Liability for Future Policy Benefit, after Reinsurance [Abstract] | ||
Liability for Future Policy Benefit, Adverse Development, Expense | $ 0 | $ 0 |
Undiscounted and Discounted Fut
Undiscounted and Discounted Future Benefit Payments and Gross Premiums (Details) - Life policy reserves: - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Term Life Insurance | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Undiscounted expected future benefit payments | $ 4,816 | $ 4,696 | ||
Undiscounted expected future gross premiums | 4,386 | 4,470 | ||
Discounted expected future benefit payments | 2,698 | $ 2,751 | 2,691 | $ 2,584 |
Discounted expected future gross premiums | 2,601 | 2,674 | ||
Whole Life Insurance | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Undiscounted expected future benefit payments | 1,660 | 1,586 | ||
Undiscounted expected future gross premiums | 663 | 618 | ||
Discounted expected future benefit payments | 637 | $ 657 | 644 | $ 614 |
Discounted expected future gross premiums | $ 402 | $ 384 |
Revenue and Interest Recognized
Revenue and Interest Recognized in Income (Details) - Life policy reserves: - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross premiums | $ 87 | $ 85 |
Interest accretion | 19 | 18 |
Term Life Insurance | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross premiums | 74 | 73 |
Interest accretion | 13 | 12 |
Whole Life Insurance | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross premiums | 13 | 12 |
Interest accretion | $ 6 | $ 6 |
Weighted Average Interest Rate
Weighted Average Interest Rate for Life Policy Products (Details) - Life policy reserves: | Mar. 31, 2024 | Mar. 31, 2023 |
Term Life Insurance | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest accretion rate | 5.26% | 5.32% |
Current discount rate | 5.09% | 4.81% |
Whole Life Insurance | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest accretion rate | 5.90% | 5.94% |
Current discount rate | 5.40% | 5.06% |
Changes in Policyholders' Accou
Changes in Policyholders' Account Balances (Details) - Investment contract reserves: - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Deferred Fixed Annuity | ||
Policyholder Account Balance [Roll Forward] | ||
Balance, beginning of period | $ 656 | $ 734 |
Premiums received | 9 | 10 |
Policy charges | 0 | 0 |
Surrenders and withdrawals | (37) | (36) |
Benefit payments | (3) | (3) |
Interest credited | 6 | 6 |
Balance, end of period | $ 631 | $ 711 |
Weighted average crediting rate | 3.55% | 3.36% |
Net amount at risk | $ 0 | $ 0 |
Cash surrender value | 625 | 706 |
Universal life | ||
Policyholder Account Balance [Roll Forward] | ||
Balance, beginning of period | 457 | 457 |
Premiums received | 10 | 11 |
Policy charges | (10) | (10) |
Surrenders and withdrawals | (4) | (3) |
Benefit payments | (2) | (2) |
Interest credited | 5 | 5 |
Balance, end of period | $ 456 | $ 458 |
Weighted average crediting rate | 4.33% | 4.26% |
Net amount at risk | $ 3,908 | $ 4,064 |
Cash surrender value | $ 425 | $ 424 |
Account Values by Range of Guar
Account Values by Range of Guaranteed Minimum Crediting Rates (Details) - Investment contract reserves: - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Deferred Fixed Annuity | |||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||
Balance, end of period | $ 631 | $ 656 | $ 711 |
Deferred Fixed Annuity | Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | |||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||
Balance, end of period | 53 | 59 | |
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 | 337 | 423 | |
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 | 15 | 17 | |
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 | 226 | 212 | |
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 | 582 | 661 | |
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 | 4 | 9 | |
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 | 337 | 423 | |
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 | 15 | 17 | |
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 | 226 | 212 | |
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 | 49 | 50 | |
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 | 49 | 50 | |
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 | $ 457 | 458 |
Universal life | Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | |||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||
Balance, end of period | 329 | 400 | |
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 | 65 | 47 | |
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 | 58 | 9 | |
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 | 4 | 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 | 122 | 118 | |
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 | 0 | 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 | 60 | 47 | |
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 | 58 | 9 | |
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 | 4 | 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 | 54 | 53 | |
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 | 49 | 53 | |
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 | 5 | 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 | 280 | 287 | |
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 | 280 | 287 | |
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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Additional Liability, Long-Duration Insurance [Roll Forward] | ||
Balance, beginning of period | $ 128 | $ 121 |
Balance, beginning of period before shadow reserve adjustments | 129 | 123 |
Effect of changes in cash flow assumptions | 0 | 0 |
Effect of actual variances from expected experience | 0 | (1) |
Effect of actual variances from expected experience | 129 | 122 |
Interest accrual | 1 | 1 |
Excess death benefits | (2) | 0 |
Attributed assessments | 3 | 3 |
Effect of changes in interest rate assumptions | (1) | 1 |
Balance, end of period before shadow reserve adjustments | 130 | 127 |
Shadow reserve adjustments | (1) | (2) |
Balance, end of period | 129 | 125 |
Less reinsurance recoverable, end of period | 6 | 6 |
Net other additional liability, after reinsurance recoverable | $ 135 | $ 131 |
Weighted-average duration of the other additional liability in years | 31 years | 34 years |
Separate Account Balances and C
Separate Account Balances and Changes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Separate Account, Liability [Roll Forward] | ||
Balance, beginning of period | $ 925 | |
Balance, end of period | 927 | |
Universal life | ||
Separate Account, Liability [Roll Forward] | ||
Balance, beginning of period | 925 | $ 892 |
Interest credited before policy charges | 10 | 10 |
Benefit payments | 0 | (2) |
Other | (8) | (1) |
Balance, end of period | 927 | 899 |
Cash surrender value | $ 925 | $ 896 |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs - Deferred Policy Acquisition Costs and Asset Reconciliation (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Movement Analysis of Deferred Policy Acquisition Costs | ||
Deferred policy acquisition costs asset, beginning of period | $ 1,093 | $ 1,013 |
Capitalized deferred policy acquisition costs | 417 | 383 |
Amortized deferred policy acquisition costs | (367) | (348) |
Deferred policy acquisition costs asset, end of period | 1,143 | 1,048 |
Consolidated Property And Casualty Insurance | ||
Movement Analysis of Deferred Policy Acquisition Costs | ||
Deferred policy acquisition costs asset, beginning of period | 749 | 682 |
Capitalized deferred policy acquisition costs | 407 | 372 |
Amortized deferred policy acquisition costs | (360) | (340) |
Deferred policy acquisition costs asset, end of period | 796 | 714 |
Life Insurance Segment | ||
Movement Analysis of Deferred Policy Acquisition Costs | ||
Deferred policy acquisition costs asset, beginning of period | 344 | 331 |
Capitalized deferred policy acquisition costs | 10 | 11 |
Amortized deferred policy acquisition costs | (7) | (8) |
Deferred policy acquisition costs asset, end of period | $ 347 | $ 334 |
Deferred Policy Acquisition C_4
Deferred Policy Acquisition Costs - Life Deferred Acquisition Costs Rollforward by Product (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Movement Analysis of Deferred Policy Acquisition Costs | ||
Deferred policy acquisition costs asset, beginning of period | $ 1,093 | $ 1,013 |
Capitalized deferred policy acquisition costs | 417 | 383 |
Amortized deferred policy acquisition costs | (367) | (348) |
Deferred policy acquisition costs asset, end of period | 1,143 | 1,048 |
Life Insurance Segment | ||
Movement Analysis of Deferred Policy Acquisition Costs | ||
Deferred policy acquisition costs asset, beginning of period | 344 | 331 |
Capitalized deferred policy acquisition costs | 10 | 11 |
Amortized deferred policy acquisition costs | (7) | (8) |
Deferred policy acquisition costs asset, end of period | 347 | 334 |
Life Insurance Segment | Term Life Insurance | ||
Movement Analysis of Deferred Policy Acquisition Costs | ||
Deferred policy acquisition costs asset, beginning of period | 236 | 228 |
Capitalized deferred policy acquisition costs | 8 | 9 |
Amortized deferred policy acquisition costs | (6) | (6) |
Deferred policy acquisition costs asset, end of period | 238 | 231 |
Life Insurance Segment | Whole Life Insurance | ||
Movement Analysis of Deferred Policy Acquisition Costs | ||
Deferred policy acquisition costs asset, beginning of period | 48 | 43 |
Capitalized deferred policy acquisition costs | 2 | 2 |
Amortized deferred policy acquisition costs | (1) | (1) |
Deferred policy acquisition costs asset, end of period | 49 | 44 |
Life Insurance Segment | Deferred Fixed Annuity | ||
Movement Analysis of Deferred Policy Acquisition Costs | ||
Deferred policy acquisition costs asset, beginning of period | 8 | 7 |
Capitalized deferred policy acquisition costs | 0 | 0 |
Amortized deferred policy acquisition costs | 0 | 0 |
Deferred policy acquisition costs asset, end of period | 8 | 7 |
Life Insurance Segment | Universal life | ||
Movement Analysis of Deferred Policy Acquisition Costs | ||
Deferred policy acquisition costs asset, beginning of period | 52 | 53 |
Capitalized deferred policy acquisition costs | 0 | 0 |
Amortized deferred policy acquisition costs | 0 | (1) |
Deferred policy acquisition costs asset, end of period | $ 52 | $ 52 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (AOCI) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
AOCI, Net of Tax | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (435) | |
AOCI, net of tax, end of period | (442) | |
AOCI on Net Unrecognized Investment Gain (Loss) | ||
AOCI, Before Tax | ||
AOCI, before tax, beginning of period | (570) | $ (847) |
Other comprehensive income before reclassification, before tax | (65) | 163 |
Reclassification adjustment, before tax | 10 | 0 |
Effect on other comprehensive income, before tax | (55) | 163 |
AOCI, before tax, end of period | (625) | (684) |
AOCI, Tax | ||
AOCI, tax, beginning of period | (123) | (182) |
Other comprehensive income before reclassification, tax | (13) | 35 |
Reclassification adjustment, tax | 2 | 0 |
Effect on other comprehensive income, tax | (11) | 35 |
AOCI, tax, end of period | (134) | (147) |
AOCI, Net of Tax | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (447) | (665) |
Other comprehensive income before reclassification, net of tax | (52) | 128 |
Reclassification adjustment, net of tax | 8 | 0 |
Effect on other comprehensive income, net of tax | (44) | 128 |
AOCI, net of tax, end of period | (491) | (537) |
AOCI on Pension Obligations | ||
AOCI, Before Tax | ||
AOCI, before tax, beginning of period | 30 | 36 |
Other comprehensive income before reclassification, before tax | 0 | (5) |
Reclassification adjustment, before tax | 0 | (1) |
Effect on other comprehensive income, before tax | 0 | (6) |
AOCI, before tax, end of period | 30 | 30 |
AOCI, Tax | ||
AOCI, tax, beginning of period | 8 | 9 |
Other comprehensive income before reclassification, tax | 0 | (1) |
Reclassification adjustment, tax | 0 | 0 |
Effect on other comprehensive income, tax | 0 | (1) |
AOCI, tax, end of period | 8 | 8 |
AOCI, Net of Tax | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 22 | 27 |
Other comprehensive income before reclassification, net of tax | 0 | (4) |
Reclassification adjustment, net of tax | 0 | (1) |
Effect on other comprehensive income, net of tax | 0 | (5) |
AOCI, net of tax, end of period | 22 | 22 |
AOCI on Life Policy Reserves, Reinsurance Recoverable And Other | ||
AOCI, Before Tax | ||
AOCI, before tax, beginning of period | (13) | 29 |
Other comprehensive income before reclassification, before tax | 47 | (45) |
Reclassification adjustment, before tax | 0 | 0 |
Effect on other comprehensive income, before tax | 47 | (45) |
AOCI, before tax, end of period | 34 | (16) |
AOCI, Tax | ||
AOCI, tax, beginning of period | (3) | 5 |
Other comprehensive income before reclassification, tax | 10 | (9) |
Reclassification adjustment, tax | 0 | 0 |
Effect on other comprehensive income, tax | 10 | (9) |
AOCI, tax, end of period | 7 | (4) |
AOCI, Net of Tax | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (10) | 24 |
Other comprehensive income before reclassification, net of tax | 37 | (36) |
Reclassification adjustment, net of tax | 0 | 0 |
Effect on other comprehensive income, net of tax | 37 | (36) |
AOCI, net of tax, end of period | 27 | (12) |
Summary of AOCI | ||
AOCI, Before Tax | ||
AOCI, before tax, beginning of period | (553) | (782) |
Change in unrealized gains, net, on investments available for sale, before tax | (55) | 163 |
Change in pension obligations, before tax | 0 | (6) |
Change in life policy reserves, reinsurance recoverable and other, before tax | 47 | (45) |
Effect on other comprehensive income, before tax | (8) | 112 |
AOCI, before tax, end of period | (561) | (670) |
AOCI, Tax | ||
AOCI, tax, beginning of period | (118) | (168) |
Change in unrealized gains, net, on investments available for sale, tax | (11) | 35 |
Change in pension obligations, tax | 0 | (1) |
Change in Life Policy Reserves, Reinsurance Recoverable and Other, Tax | 10 | (9) |
Effect on other comprehensive income, tax | (1) | 25 |
AOCI, tax, end of period | (119) | (143) |
AOCI, Net of Tax | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (435) | (614) |
Change in unrealized gains, net, on investments available for sale, net of tax | (44) | 128 |
Change in pension obligations, net of tax | 0 | (5) |
Change in Life Policy Reserves, Reinsurance Recoverable and Other, Net of Tax | 37 | (36) |
Effect on other comprehensive income, net of tax | (7) | 87 |
AOCI, net of tax, end of period | $ (442) | $ (527) |
Reinsurance - Consolidated Prop
Reinsurance - Consolidated Property Casualty Insurance Assumed and Ceded Business (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Property Casualty Insurance Assumed And Ceded Business | ||
Earned premiums | $ 2,071 | $ 1,918 |
Incurred loss and loss expenses | 1,349 | 1,398 |
Consolidated Property And Casualty Insurance | ||
Property Casualty Insurance Assumed And Ceded Business | ||
Direct written premiums | 2,125 | 1,859 |
Assumed written premiums | 239 | 244 |
Ceded written premiums | (116) | (84) |
Net written premiums | 2,248 | 2,019 |
Direct earned premiums | 1,934 | 1,760 |
Assumed earned premiums | 152 | 159 |
Ceded earned premiums | (94) | (78) |
Earned premiums | 1,992 | 1,841 |
Direct incurred loss and loss expenses | 1,193 | 1,299 |
Assumed incurred loss and loss expenses | 76 | 76 |
Ceded incurred loss and loss expenses | 1 | (58) |
Incurred loss and loss expenses | $ 1,270 | $ 1,317 |
Reinsurance - Life Insurance Ce
Reinsurance - Life Insurance Ceded Business (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Reinsurance for Insurance Companies, by Product Segment | ||
Insurance losses and contract holders' benefits | $ 1,349 | $ 1,398 |
Life Insurance Segment | ||
Reinsurance for Insurance Companies, by Product Segment | ||
Direct earned premiums | 99 | 96 |
Ceded earned premiums | (20) | (19) |
Earned premiums | 79 | 77 |
Direct contract holders' benefits incurred | 94 | 97 |
Ceded contract holders' benefits incurred | (15) | (16) |
Insurance losses and contract holders' benefits | $ 79 | $ 81 |
Reinsurance (Narrative) (Detail
Reinsurance (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Consolidated Property and Casualty Insurance | ||
Reinsurance for Insurance Companies, by Product Segment | ||
Premium Receivable, Allowance for Credit Loss | $ 16 | $ 16 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Income Tax Disclosure | |||
Tax at statutory rate, percentage | 21% | 21% | |
United States | |||
Income Tax Disclosure | |||
Deferred tax assets valuation allowance | $ 0 | $ 0 | |
Cincinnati Global | |||
Income Tax Disclosure | |||
Deferred tax assets valuation allowance | 0 | 0 | |
Cincinnati Global | United States | |||
Income Tax Disclosure | |||
Operating loss carryforwards | 0 | 0 | |
Cincinnati Global | United Kingdom | |||
Income Tax Disclosure | |||
Operating loss carryforwards | $ 91 | $ 100 |
Income Taxes - Differences Betw
Income Taxes - Differences Between Statutory Income Tax Rate and Effective Income Tax Rate (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Increase (decrease) resulting from: | ||
Tax at statutory rate | $ 200 | $ 56 |
Tax-exempt income from municipal bonds | (5) | (5) |
Dividend received exclusion | (5) | (5) |
Other | 8 | (3) |
Total provision for income taxes | $ 198 | $ 43 |
Increase (decrease) resulting from: | ||
Tax at statutory rate | 21% | 21% |
Tax-exempt income from municipal bonds, Percent | (0.50%) | (1.90%) |
Dividend received exclusion, Percent | (0.50%) | (1.90%) |
Other | 0.80% | (1.20%) |
Provision for income taxes | 20.80% | 16% |
Net Income Per Common Share - C
Net Income Per Common Share - Calculations for Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator: | ||
Net income—basic and diluted | $ 755 | $ 225 |
Denominator: | ||
Basic weighted-average common shares outstanding (in shares) | 156.8 | 157.2 |
Diluted weighted-average shares | 157.9 | 158.5 |
Earnings (loss) per share: | ||
Basic (in USD per share) | $ 4.82 | $ 1.43 |
Diluted (in USD per share) | $ 4.78 | $ 1.42 |
Number of anti-dilutive stock-based awards (in shares) | 1.3 | 1 |
Stock Options | ||
Denominator: | ||
Effect of stock-based awards (in shares) | 0.7 | 0.8 |
Nonvested shares | ||
Denominator: | ||
Effect of stock-based awards (in shares) | 0.4 | 0.5 |
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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Defined Benefit Plan Disclosure | ||
Service cost | $ 1 | $ 1 |
Interest cost | 3 | 3 |
Expected return on plan assets | (5) | (5) |
Amortization of actuarial loss and prior service cost | 0 | (1) |
Other | 0 | (5) |
Total non-service benefit | (2) | (8) |
Net periodic benefit cost | $ (1) | $ (7) |
Employee Retirement Benefits _2
Employee Retirement Benefits - Defined Contribution Plan (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Defined Benefit Plan Disclosure | ||
Matching contributions to 401(k) and Top Hat plans | $ 9,000,000 | $ 8,000,000 |
Qualified Pension Plans | ||
Defined Benefit Plan Disclosure | ||
Pension contributions | $ 0 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 3 Months Ended |
Mar. 31, 2024 segment industry | |
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 | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Segment Reporting Information | |||
Earned premiums | $ 2,071 | $ 1,918 | |
Fee revenues | 4 | 4 | |
Other | 3 | 3 | |
Investment income, net of expenses | 245 | 210 | |
Investment gains and losses, net | 612 | 106 | |
Total revenues | 2,935 | 2,241 | |
Income before Income Taxes | 953 | 268 | |
Assets | 33,727 | $ 32,769 | |
Operating Segments | |||
Segment Reporting Information | |||
Assets | 5,298 | 5,294 | |
Operating Segments | Commercial Insurance | |||
Segment Reporting Information | |||
Earned premiums | 1,082 | 1,056 | |
Fee revenues | 1 | 1 | |
Total revenues | 1,083 | 1,057 | |
Income Before Income Taxes | 39 | (2) | |
Operating Segments | Commercial Insurance | Commercial Casualty Line | |||
Segment Reporting Information | |||
Earned premiums | 365 | 377 | |
Operating Segments | Commercial Insurance | Commercial Property Line | |||
Segment Reporting Information | |||
Earned premiums | 336 | 299 | |
Operating Segments | Commercial Insurance | Commercial Auto Line | |||
Segment Reporting Information | |||
Earned premiums | 220 | 213 | |
Operating Segments | Commercial Insurance | Workers' Compensation Line | |||
Segment Reporting Information | |||
Earned premiums | 61 | 74 | |
Operating Segments | Commercial Insurance | Other Commercial Lines | |||
Segment Reporting Information | |||
Earned premiums | 100 | 93 | |
Operating Segments | Personal Insurance | |||
Segment Reporting Information | |||
Earned premiums | 588 | 464 | |
Fee revenues | 1 | 1 | |
Total revenues | 589 | 465 | |
Income Before Income Taxes | 37 | (57) | |
Operating Segments | Personal Insurance | Personal Auto | |||
Segment Reporting Information | |||
Earned premiums | 208 | 166 | |
Operating Segments | Personal Insurance | Home Owner Line | |||
Segment Reporting Information | |||
Earned premiums | 303 | 232 | |
Operating Segments | Personal Insurance | Other Personal Lines | |||
Segment Reporting Information | |||
Earned premiums | 77 | 66 | |
Operating Segments | Excess and Surplus Lines Insurance | |||
Segment Reporting Information | |||
Earned premiums | 139 | 127 | |
Fee revenues | 1 | 0 | |
Total revenues | 140 | 127 | |
Income Before Income Taxes | 12 | 13 | |
Operating Segments | Life Insurance Segment | |||
Segment Reporting Information | |||
Earned premiums | 79 | 77 | |
Fee revenues | 1 | 2 | |
Total revenues | 80 | 79 | |
Income Before Income Taxes | 10 | 8 | |
Assets | 1,564 | 1,562 | |
Operating Segments | Investment Segment | |||
Segment Reporting Information | |||
Investment income, net of expenses | 245 | 210 | |
Investment gains and losses, net | 612 | 106 | |
Total revenues | 857 | 316 | |
Income Before Income Taxes | 826 | 286 | |
Assets | 25,878 | 24,999 | |
Corporate, Non-Segment | |||
Segment Reporting Information | |||
Earned premiums | 183 | 194 | |
Other | 3 | 3 | |
Total revenues | 186 | 197 | |
Income Before Income Taxes | 29 | $ 20 | |
Assets | $ 987 | $ 914 |