Document_and_Entity_Informatio
Document and Entity Information Document (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Document and Entity Information [Abstract] | ' |
Entity Registrant Name | 'CNA FINANCIAL CORP |
Entity Central Index Key | '0000021175 |
Current Fiscal Year End Date | '--12-31 |
Entity Filer Category | 'Large Accelerated Filer |
Document Type | '10-K |
Document Period End Date | 31-Dec-13 |
Document Fiscal Year Focus | '2013 |
Document Fiscal Period Focus | 'FY |
Amendment Flag | 'false |
Entity Common Stock, Shares Outstanding | 269,824,832 |
Entity Well-known Seasoned Issuer | 'Yes |
Entity Voluntary Filers | 'No |
Entity Current Reporting Status | 'Yes |
Entity Public Float | $870 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues | ' | ' | ' |
Net earned premiums | $7,271 | $6,882 | $6,603 |
Net investment income | 2,450 | 2,282 | 2,054 |
Net realized investment gains (losses): | ' | ' | ' |
Other-than-temporary impairment losses | -76 | -129 | -175 |
Portion of other-than-temporary impairments recognized in Other comprehensive income (loss) | -2 | -25 | -41 |
Net other-than-temporary impairment losses recognized in earnings | -78 | -154 | -216 |
Other net realized investment gains (loss) | 109 | 217 | 214 |
Net realized investment gains (losses) | 31 | 63 | -2 |
Other revenues | 361 | 320 | 294 |
Total revenues | 10,113 | 9,547 | 8,949 |
Claims, Benefits and Expenses | ' | ' | ' |
Insurance claims and policyholders’ benefits | 5,947 | 5,896 | 5,489 |
Amortization of deferred acquisition costs | 1,362 | 1,274 | 1,176 |
Other operating expenses | 1,325 | 1,335 | 1,238 |
Interest | 166 | 170 | 175 |
Total claims, benefits and expenses | 8,800 | 8,675 | 8,078 |
Income (loss) from continuing operations before income tax | 1,313 | 872 | 871 |
Income tax (expense) benefit | -376 | -244 | -242 |
Income (loss) from continuing operations | 937 | 628 | 629 |
Income (loss) from discontinued operations, net of income tax (expense) benefit of -,- and $0 | ' | ' | -1 |
Net income (loss) | 937 | 628 | 628 |
Net (income) loss attributable to noncontrolling interests | ' | ' | -16 |
Net income (loss) attributable to CNA | $937 | $628 | $612 |
Basic Earnings (Loss) Per Share Attributable to CNA | ' | ' | ' |
Income (loss) from continuing operations attributable to CNA | $3.48 | $2.33 | $2.27 |
Income (loss) from discontinued operations attributable to CNA | ' | ' | ' |
Basic earnings (loss) per share attributable to CNA common stockholders | $3.48 | $2.33 | $2.27 |
Diluted Earnings (Loss) Per Share Attributable to CNA | ' | ' | ' |
Income (loss) from continuing operations attributable to CNA | $3.47 | $2.33 | $2.27 |
Income (loss) from discontinued operations attributable to CNA | ' | ' | ' |
Diluted earnings (loss) per share attributable to CNA common stockholders | $3.47 | $2.33 | $2.27 |
Dividends per share | $0.80 | $0.60 | $0.40 |
Weighted Average Outstanding Common Stock and Common Stock Equivalents | ' | ' | ' |
Basic | 269.7 | 269.4 | 269.3 |
Diluted | 270.2 | 269.8 | 269.6 |
Consolidated_Statements_of_Ope1
Consolidated Statements of Operations Parenthetical (Parentheticals) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Statements of Operations [Abstract] | ' | ' | ' |
Income tax (expense) benefit on discontinued operations | ' | ' | ' |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other Comprehensive Income, Net of Tax, Changes In: | ' | ' | ' |
Net unrealized gains (losses) on investments with other-than-temporary impairments | $6 | $84 | $10 |
Net unrealized gains (losses) on other investments | -679 | 339 | 365 |
Net unrealized gains (losses) on investments | -673 | 423 | 375 |
Net unrealized gains (losses) on discontinued operations and other | ' | ' | -1 |
Foreign currency translation adjustment | -11 | 40 | -15 |
Pension and postretirement benefits | 295 | -112 | -208 |
Other comprehensive income (loss), net of tax | -389 | 351 | 151 |
Net income (loss) | 937 | 628 | 628 |
Comprehensive income (loss) | 548 | 979 | 779 |
Net unrealized (gains) losses on investments attributable to noncontrolling interests | ' | ' | -8 |
Other comprehensive (income) loss attributable to noncontrolling interests | ' | ' | -8 |
Net (income) loss attributable to noncontrolling interests | ' | ' | -16 |
Comprehensive (income) loss attributable to noncontrolling interests | ' | ' | -24 |
Total comprehensive income (loss) attributable to CNA | $548 | $979 | $755 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Assets | ' | ' |
Fixed maturity securities at fair value (amortized cost of $39,311 and $38,170) | $41,233 | $42,633 |
Equity securities at fair value (cost of $179 and $228) | 185 | 249 |
Limited partnership investments | 2,720 | 2,462 |
Other invested assets | 54 | 59 |
Mortgage loans | 508 | 401 |
Short term investments | 1,407 | 1,832 |
Total investments | 46,107 | 47,636 |
Cash | 195 | 156 |
Reinsurance receivables (less allowance for uncollectible receivables of $71 and $73) | 6,017 | 6,158 |
Insurance receivables (less allowance for uncollectible receivables of $84 and $101) | 1,979 | 1,882 |
Accrued investment income | 443 | 434 |
Deferred acquisition costs | 624 | 598 |
Deferred income taxes | 220 | 93 |
Property and equipment at cost (less accumulated depreciation of $365 and $404) | 304 | 326 |
Goodwill | 155 | 154 |
Other assets (includes $0 and $4 due from Loews Corporation) | 969 | 773 |
Separate account business | 181 | 312 |
Total assets | 57,194 | 58,522 |
Liabilities | ' | ' |
Claim and claim adjustment expenses | 24,089 | 24,763 |
Unearned premiums | 3,718 | 3,610 |
Future policy benefits | 10,471 | 11,475 |
Policyholders’ funds | 116 | 157 |
Short term debt | 549 | 13 |
Long term debt | 2,011 | 2,557 |
Other liabilities (includes $178 and $0 due to Loews Corporation) | 3,408 | 3,321 |
Separate account business | 181 | 312 |
Total liabilities | 44,543 | 46,208 |
Commitments and contingencies (Notes B, G and L) | ' | ' |
Stockholders' Equity | ' | ' |
Common stock ($2.50 par value; 500,000,000 shares authorized; 273,040,243 shares issued; 269,717,583 and 269,399,390 shares outstanding) | 683 | 683 |
Additional paid-in capital | 2,145 | 2,146 |
Retained earnings | 9,495 | 8,774 |
Accumulated other comprehensive income (loss) | 442 | 831 |
Treasury stock (3,322,660 and 3,640,853 shares), at cost | -91 | -99 |
Notes receivable for the issuance of common stock | -23 | -21 |
Total stockholders’ equity | 12,651 | 12,314 |
Total liabilities and stockholders' equity | $57,194 | $58,522 |
Consolidated_Balance_Sheet_Par
Consolidated Balance Sheet Parentheticals (Parentheticals) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Fixed maturities securities at amortized cost | $39,311 | $38,170 |
Equity securities at cost | 179 | 228 |
Allowance for uncollectible reinsurance receivables | 71 | 73 |
Allowance for uncollectible insurance receivables | 84 | 101 |
Accumulated depreciation on property and equipment | 365 | 404 |
Other assets receivable from Loews Corporation | ' | 4 |
Other liabilities payable to Loews Corporation | $178 | ' |
Common stock, par value | $2.50 | $2.50 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 273,040,243 | 273,040,243 |
Common stock, shares outstanding | 269,717,583 | 269,399,390 |
Treasury stock, shares | 3,322,660 | 3,640,853 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash Flows from Operating Activities | ' | ' | ' |
Net income (loss) | $937 | $628 | $628 |
Adjustments to reconcile net income (loss) to net cash flows provided (used) by operating activities: | ' | ' | ' |
(Income) loss from discontinued operations | ' | ' | 1 |
(Gain) loss on disposal of property and equipment | ' | 4 | 9 |
Deferred income tax expense (benefit) | 77 | 147 | 188 |
Trading portfolio activity | -10 | -23 | 1 |
Net realized investment (gains) losses | -31 | -63 | 2 |
Equity method investees | -323 | -89 | 97 |
Amortization of investments | -24 | -55 | -64 |
Depreciation and amortization | 101 | 125 | 79 |
Changes in: | ' | ' | ' |
Receivables, net | 44 | 49 | 1,020 |
Accrued investment income | -9 | 4 | -17 |
Deferred acquisition costs | 2 | -16 | -1 |
Insurance reserves | -68 | 430 | -237 |
Other assets | -27 | 144 | 175 |
Other liabilities | 525 | -49 | -187 |
Other, net | 10 | 14 | 10 |
Total adjustments | 267 | 622 | 1,076 |
Net cash flows provided (used) by operating activities-continuing operations | 1,204 | 1,250 | 1,704 |
Net cash flows provided (used) by operating activities-discontinued operations | ' | ' | -2 |
Net cash flows provided (used) by operating activities-total | 1,204 | 1,250 | 1,702 |
Dispositions: | ' | ' | ' |
Fixed maturity securities - sales | 6,869 | 6,123 | 7,579 |
Fixed maturity securities - maturities, calls and redemptions | 3,271 | 3,699 | 3,055 |
Equity securities | 103 | 86 | 178 |
Limited partnerships | 108 | 165 | 57 |
Mortgage loans | 22 | 7 | 2 |
Purchases: | ' | ' | ' |
Fixed maturity securities | -11,197 | -10,299 | -12,168 |
Equity securities | -77 | -54 | -72 |
Limited partnerships | -223 | -228 | -215 |
Mortgage loans | -129 | -174 | -149 |
Change in other investments | -22 | 22 | 17 |
Change in short term investments | 425 | -7 | 566 |
Purchase of Hardy | ' | -197 | ' |
Purchases of property and equipment | -91 | -94 | -84 |
Other dispositions | 32 | 1 | 171 |
Other, net | 11 | 16 | 1 |
Net cash flows provided (used) by investing activities-continuing operations | -898 | -934 | -1,062 |
Net cash flows provided (used) by investing activities-discontinued operations | ' | ' | 2 |
Net cash flows provided (used) by investing activities-total | -898 | -934 | -1,060 |
Cash Flows from Financing Activities | ' | ' | ' |
Acquisition of CNA Surety noncontrolling interest | ' | ' | -475 |
Dividends paid to common stockholders | -216 | -162 | -108 |
Proceeds from the issuance of debt | ' | ' | 396 |
Repayment of debt | -13 | -70 | -451 |
Stock options exercised | 2 | 1 | 2 |
Other, net | -37 | -8 | -8 |
Net cash flows provided (used) by financing activities-continuing operations | -264 | -239 | -644 |
Net cash flows provided (used) by financing activities-discontinued operations | ' | ' | ' |
Net cash flows provided (used) by financing activities-total | -264 | -239 | -644 |
Effect of foreign exchange rate changes on cash | -3 | 4 | ' |
Net change in cash | 39 | 81 | -2 |
Cash, beginning of year | 156 | 75 | 77 |
Cash, end of year | $195 | $156 | $75 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common stock [Member] | Additional paid-in capital [Member] | Retained earnings [Member] | Accumulated other comprehensive income (loss) [Member] | Treasury stock [Member] | Notes receivable for the issuance of common stock [Member] | Parent [Member] | Noncontrolling interest [Member] |
In Millions, unless otherwise specified | |||||||||
Balance at Dec. 31, 2010 | ' | $683 | $2,200 | $7,804 | $326 | ($105) | ($26) | ' | $563 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 628 | ' | ' | 612 | ' | ' | ' | ' | 16 |
Other comprehensive income (loss) | 151 | ' | ' | ' | 143 | ' | ' | ' | 8 |
Dividends paid to common stockholders | ' | ' | ' | -108 | ' | ' | ' | ' | ' |
Stock-based compensation | ' | ' | 4 | ' | ' | 3 | ' | ' | ' |
(Increase) Decrease in notes receivable from the issuance of common stock | ' | ' | ' | ' | ' | ' | 4 | ' | ' |
Other | ' | ' | 2 | ' | ' | ' | ' | ' | -11 |
Acquisition of CNA Surety noncontrolling interest | ' | ' | -65 | ' | 19 | ' | ' | ' | -429 |
Disposition of FICOH ownership interest | ' | ' | ' | ' | -8 | ' | ' | ' | -147 |
Balance at Dec. 31, 2011 | 11,488 | 683 | 2,141 | 8,308 | 480 | -102 | -22 | 11,488 | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 628 | ' | ' | 628 | ' | ' | ' | ' | ' |
Other comprehensive income (loss) | 351 | ' | ' | ' | 351 | ' | ' | ' | ' |
Dividends paid to common stockholders | ' | ' | ' | -162 | ' | ' | ' | ' | ' |
Stock-based compensation | ' | ' | 5 | ' | ' | 3 | ' | ' | ' |
(Increase) Decrease in notes receivable from the issuance of common stock | ' | ' | ' | ' | ' | ' | 1 | ' | ' |
Other | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition of CNA Surety noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Disposition of FICOH ownership interest | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at Dec. 31, 2012 | 12,314 | 683 | 2,146 | 8,774 | 831 | -99 | -21 | 12,314 | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 937 | ' | ' | 937 | ' | ' | ' | ' | ' |
Other comprehensive income (loss) | -389 | ' | ' | ' | -389 | ' | ' | ' | ' |
Dividends paid to common stockholders | ' | ' | ' | -216 | ' | ' | ' | ' | ' |
Stock-based compensation | ' | ' | -1 | ' | ' | 8 | ' | ' | ' |
(Increase) Decrease in notes receivable from the issuance of common stock | ' | ' | ' | ' | ' | ' | -2 | ' | ' |
Other | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition of CNA Surety noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Disposition of FICOH ownership interest | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at Dec. 31, 2013 | $12,651 | $683 | $2,145 | $9,495 | $442 | ($91) | ($23) | $12,651 | ' |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Accounting Policies [Abstract] | ' | ||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||
Note A. Summary of Significant Accounting Policies | |||||||||||
Basis of Presentation | |||||||||||
The Consolidated Financial Statements include the accounts of CNA Financial Corporation (CNAF) and its subsidiaries. Collectively, CNAF and its subsidiaries are referred to as CNA or the Company. Loews Corporation (Loews) owned approximately 90% of the outstanding common stock of CNAF as of December 31, 2013. | |||||||||||
The accompanying Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). Intercompany amounts have been eliminated. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates. | |||||||||||
The Company has historically reported certain run-off insurance operations acquired in its merger with The Continental Corporation in 1995 as discontinued operations. Due to the immateriality of the remaining liabilities, effective in the third quarter of 2011, the Company is no longer reporting these run-off operations as discontinued operations. | |||||||||||
Business | |||||||||||
The Company's core property and casualty insurance operations are reported in three business segments: CNA Specialty, CNA Commercial and Hardy. The Company's non-core operations are managed in two segments: Life & Group Non-Core and Corporate & Other Non-Core. | |||||||||||
The Company serves a wide variety of customers, including small, medium and large businesses; insurance companies; associations; professionals; groups; and individuals with a broad range of insurance and risk management products and services. | |||||||||||
Core insurance products include commercial property and casualty coverages, including surety. Non-core insurance products, which primarily have been placed in run-off, include life, long term care and retirement products and annuities. CNA services include risk management, information services, warranty and claims administration. The Company's products and services are primarily marketed through independent agents, brokers, and managing general underwriters. | |||||||||||
Hardy | |||||||||||
On July 2, 2012, the Company completed the acquisition of all outstanding shares of Hardy, a specialized Lloyd's of London (Lloyd's) underwriter. Through Lloyd's Syndicate 382, Hardy underwrites primarily short-tail exposures in marine and aviation, non-marine property, specialty lines and property treaty reinsurance. The results of Hardy from July 2, 2012 are included in the results of our core property and casualty insurance operations as a separate segment. | |||||||||||
The purchase price for Hardy was $231 million. Acquisition related expenses of $4 million were incurred during the year ended December 31, 2012, including investment advisory, legal and other expenses, and were recorded in the Corporate and Other Non-Core segment. | |||||||||||
Noncontrolling Interests | |||||||||||
Net income attributable to noncontrolling interests for the year ended December 31, 2011 represented the noncontrolling interests in CNA Surety Corporation (Surety) and First Insurance Company of Hawaii (FICOH). On June 10, 2011, CNA completed the acquisition of the noncontrolling interest of Surety and on November 29, 2011, CNA completed the sale of its 50% ownership interest in FICOH. | |||||||||||
Insurance Operations | |||||||||||
Premiums: Insurance premiums on property and casualty insurance contracts are recognized in proportion to the underlying risk insured which principally are earned ratably over the duration of the policies. Premiums on long term care contracts are earned ratably over the policy year in which they are due. The reserve for unearned premiums represents the portion of premiums written relating to the unexpired terms of coverage. | |||||||||||
Insurance receivables include balances due currently or in the future, including amounts due from insureds related to losses under high deductible policies, and are presented at unpaid balances, net of an allowance for uncollectible receivables. Amounts are considered past due based on policy payment terms. That allowance is determined based on periodic evaluations of aged receivables, management's experience and current economic conditions. Insurance receivables and any related allowance are written off after collection efforts are exhausted or a negotiated settlement is reached. | |||||||||||
Property and casualty contracts that are retrospectively rated contain provisions that result in an adjustment to the initial policy premium depending on the contract provisions and loss experience of the insured during the experience period. For such contracts, the Company estimates the amount of ultimate premiums that the Company may earn upon completion of the experience period and recognizes either an asset or a liability for the difference between the initial policy premium and the estimated ultimate premium. The Company adjusts such estimated ultimate premium amounts during the course of the experience period based on actual results to date. The resulting adjustment is recorded as either a reduction of or an increase to the earned premiums for the period. | |||||||||||
Claim and claim adjustment expense reserves: Claim and claim adjustment expense reserves, except reserves for structured settlements not associated with asbestos and environmental pollution (A&EP), workers' compensation lifetime claims, and accident and health claims, are not discounted and are based on 1) case basis estimates for losses reported on direct business, adjusted in the aggregate for ultimate loss expectations; 2) estimates of incurred but not reported (IBNR) losses; 3) estimates of losses on assumed reinsurance; 4) estimates of future expenses to be incurred in the settlement of claims; 5) estimates of salvage and subrogation recoveries and 6) estimates of amounts due from insureds related to losses under high deductible policies. Management considers current conditions and trends as well as past Company and industry experience in establishing these estimates. The effects of inflation, which can be significant, are implicitly considered in the reserving process and are part of the recorded reserve balance. Ceded claim and claim adjustment expense reserves are reported as a component of Reinsurance receivables on the Consolidated Balance Sheets. | |||||||||||
Claim and claim adjustment expense reserves are presented net of anticipated amounts due from insureds related to losses under deductible policies of $1.3 billion as of December 31, 2013 and 2012. A significant portion of these amounts are supported by collateral. The Company has an allowance for uncollectible deductible amounts, which is presented as a component of the allowance for doubtful accounts included in Insurance receivables on the Consolidated Balance Sheets. | |||||||||||
Structured settlements have been negotiated for certain property and casualty insurance claims. Structured settlements are agreements to provide fixed periodic payments to claimants. Certain structured settlements are funded by annuities purchased from Continental Assurance Company (CAC) for which the related annuity obligations are reported in Future policy benefits reserves. Obligations for structured settlements not funded by annuities are included in claim and claim adjustment expense reserves and carried at present values determined using interest rates ranging from 7.1% to 9.7% at December 31, 2013 and 2012. At December 31, 2013 and 2012, the discounted reserves for unfunded structured settlements were $580 million and $602 million, net of discount of $969 million and $1.0 billion. | |||||||||||
Workers' compensation lifetime claim reserves are calculated using mortality assumptions determined through statutory regulation and economic factors. Accident and health claim reserves are calculated using mortality and morbidity assumptions based on Company and industry experience. Workers' compensation lifetime claim reserves and accident and health claim reserves are discounted at interest rates ranging from 3.0% to 6.8% at December 31, 2013 and 3.0% to 6.5% at December 31, 2012. At December 31, 2013 and 2012, such discounted reserves totaled $2.4 billion and $2.2 billion, net of discount of $617 million and $837 million. | |||||||||||
Future policy benefits reserves: Reserves for long term care products and payout annuity contracts are computed using the net level premium method, which incorporates actuarial assumptions as to morbidity, mortality, persistency, discount rate and expenses. Expense assumptions include the estimated effects of expenses to be incurred beyond the premium paying period. Actuarial assumptions generally vary by plan, age at issue and policy duration. The initial assumptions are determined at issuance, include a margin for adverse deviation, and are locked in throughout the life of the contract unless a premium deficiency develops. If a premium deficiency emerges, the assumptions are unlocked and deferred acquisition costs, if any, and the future policy benefit reserves are adjusted. Interest rates for long-term care products range from 4.5% to 7.9% at December 31, 2013 and from 5.0% to 7.4% at December 31, 2012. Interest rates for payout annuity contracts range from 5.0% to 8.7% at December 31, 2013 and 2012. In 2012, the Company unlocked assumptions related to its payout annuity contracts due to anticipated adverse changes in discount rates, which reflected the then current low interest rate environment and our view of expected investment yields, resulting in loss recognition which increased insurance liabilities by $33 million. | |||||||||||
Policyholders' funds reserves: Policyholders' funds reserves primarily include reserves for investment contracts without life contingencies. For these contracts, policyholder liabilities are generally equal to the accumulated policy account values, which consist of an accumulation of deposit payments plus credited interest, less withdrawals and amounts assessed through the end of the period. | |||||||||||
Guaranty fund and other insurance-related assessments: Liabilities for guaranty fund and other insurance-related assessments are accrued when an assessment is probable, when it can be reasonably estimated, and when the event obligating the entity to pay an imposed or probable assessment has occurred. Liabilities for guaranty funds and other insurance-related assessments are not discounted and are included as part of Other liabilities on the Consolidated Balance Sheets. As of December 31, 2013 and 2012, the liability balances were $143 million. As of December 31, 2013 and 2012, included in Other assets on the Consolidated Balance Sheets were $1 million and $2 million of related assets for premium tax offsets. This asset is limited to the amount that is able to be offset against premium tax on future premium collections from business written or committed to be written. | |||||||||||
Reinsurance: Reinsurance accounting allows for contractual cash flows to be reflected as premiums and losses. To qualify for reinsurance accounting, reinsurance agreements must include risk transfer. To meet risk transfer requirements, a reinsurance contract must include both insurance risk, consisting of underwriting and timing risk, and a reasonable possibility of a significant loss for the assuming entity. | |||||||||||
Reinsurance receivables related to paid losses are presented at unpaid balances. Reinsurance receivables related to unpaid losses are estimated in a manner consistent with claim and claim adjustment expense reserves or future policy benefits reserves. Reinsurance receivables are reported net of an allowance for uncollectible amounts on the Consolidated Balance Sheets. The cost of reinsurance is primarily accounted for over the life of the underlying reinsured policies using assumptions consistent with those used to account for the underlying policies or over the reinsurance contract period. The ceding of insurance does not discharge the primary liability of the Company. | |||||||||||
The Company has established an allowance for uncollectible reinsurance receivables which relates to both amounts already billed on ceded paid losses as well as ceded reserves that will be billed when losses are paid in the future. The allowance for uncollectible reinsurance receivables is estimated on the basis of periodic evaluations of balances due from reinsurers, reinsurer solvency, management's experience and current economic conditions. Reinsurer financial strength ratings are updated and reviewed on an annual basis or sooner if the Company becomes aware of significant changes related to a reinsurer. Because billed receivables generally approximate 5% or less of total reinsurance receivables, the age of the reinsurance receivables related to paid losses is not a significant input into the allowance analysis. Changes in the allowance for uncollectible reinsurance receivables are presented as a component of Insurance claims and policyholders' benefits on the Consolidated Statements of Operations. | |||||||||||
Amounts are considered past due based on the reinsurance contract terms. Reinsurance receivables related to paid losses and any related allowance are written off after collection efforts have been exhausted or a negotiated settlement is reached with the reinsurer. Reinsurance receivables related to paid losses from insolvent insurers are written off when the settlement due from the estate can be reasonably estimated. At the time reinsurance receivables related to paid losses are written off, any required adjustment to reinsurance receivables related to unpaid losses is recorded as a component of Insurance claims and policyholders' benefits on the Consolidated Statements of Operations. | |||||||||||
Reinsurance contracts that do not effectively transfer the economic risk of loss on the underlying policies are recorded using the deposit method of accounting, which requires that premium paid or received by the ceding company or assuming company be accounted for as a deposit asset or liability. The Company had $3 million recorded as deposit assets at December 31, 2013 and 2012, and $130 million and $125 million recorded as deposit liabilities at December 31, 2013 and 2012. Income on reinsurance contracts accounted for under the deposit method is recognized using an effective yield based on the anticipated timing of payments and the remaining life of the contract. When the anticipated timing of payments changes, the effective yield is recalculated to reflect actual payments to date and the estimated timing of future payments. The deposit asset or liability is adjusted to the amount that would have existed had the new effective yield been applied since the inception of the contract. | |||||||||||
Deferred acquisition costs: Acquisition costs include commissions, premium taxes and certain underwriting and policy issuance costs which are incremental direct costs of successful contract acquisitions. Deferred acquisition costs related to long term care contracts issued prior to January 1, 2004 include costs which vary with and are primarily related to the acquisition of business. | |||||||||||
Acquisition costs related to property and casualty business are deferred and amortized ratably over the period the related premiums are earned. | |||||||||||
Deferred acquisition costs related to long term care contracts are amortized over the premium-paying period of the related policies using assumptions consistent with those used for computing future policy benefit reserves for such contracts. Assumptions are made at the date of policy issuance or acquisition and are consistently applied during the lives of the contracts. Deviations from estimated experience are included in results of operations when they occur. For these contracts, the amortization period is typically the estimated life of the policy. At December 31, 2013 and 2012, Deferred acquisition costs were presented net of Shadow Adjustments, as defined later in this note, of $342 million and $369 million. | |||||||||||
The Company evaluates deferred acquisition costs for recoverability. Anticipated investment income is considered in the determination of the recoverability of deferred acquisition costs. Adjustments, if necessary, are recorded in current results of operations. | |||||||||||
Deferred acquisition costs are presented net of ceding commissions and other ceded acquisition costs. Unamortized deferred acquisition costs relating to contracts that have been substantially changed by a modification in benefits, features, rights or coverages that were not anticipated in the original contract are not deferred and are included as a charge to operations in the period during which the contract modification occurred. | |||||||||||
Investments in life settlement contracts and related revenue recognition: Prior to 2002, the Company purchased investments in life settlement contracts. A life settlement contract is a contract between the owner of a life insurance policy (the policy owner) and a third-party investor (investor). Under a life settlement contract, the Company obtains the ownership and beneficiary rights of an underlying life insurance policy. | |||||||||||
The Company accounts for its investments in life settlement contracts using the fair value method. Under the fair value method, each life settlement contract is carried at its fair value at the end of each reporting period. The change in fair value, life insurance proceeds received and periodic maintenance costs, such as premiums, necessary to keep the underlying policy in force, are recorded in Other revenues on the Consolidated Statements of Operations. | |||||||||||
The fair value of the Company's investments in life settlement contracts were $88 million and $100 million at December 31, 2013 and 2012, and are included in Other assets on the Consolidated Balance Sheets. The cash receipts and payments related to life settlement contracts are included in Cash flows from operating activities on the Consolidated Statements of Cash Flows. | |||||||||||
The following table details the values for life settlement contracts. The determination of fair value is discussed in Note D. | |||||||||||
December 31, 2013 | Number of Life Settlement Contracts | Fair Value of Life Settlement Contracts | Face Amount of Life Insurance Policies | ||||||||
(In millions) | (In millions) | ||||||||||
Estimated maturity during: | |||||||||||
2014 | 60 | $ | 13 | $ | 39 | ||||||
2015 | 60 | 11 | 35 | ||||||||
2016 | 50 | 9 | 32 | ||||||||
2017 | 50 | 8 | 29 | ||||||||
2018 | 40 | 7 | 26 | ||||||||
Thereafter | 364 | 40 | 217 | ||||||||
Total | 624 | $ | 88 | $ | 378 | ||||||
The Company uses an actuarial model to estimate the aggregate face amount of life insurance that is expected to mature in each future year and the corresponding fair value. This model projects the likelihood of the insured's death for each inforce policy based upon the Company's estimated mortality rates, which may vary due to the relatively small size of the portfolio of life settlement contracts. The number of life settlement contracts presented in the table above is based upon the average face amount of inforce policies estimated to mature in each future year. | |||||||||||
The increase (decrease) in fair value recognized for the years ended December 31, 2013, 2012 and 2011 on contracts still being held was $(2) million, $11 million and $5 million. The gains recognized during the years ended December 31, 2013, 2012 and 2011 on contracts that settled were $15 million, $42 million and $28 million. | |||||||||||
Separate Account Business: Separate account assets and liabilities represent contract holder funds related to investment and annuity products for which the policyholder assumes substantially all the risk and reward. The assets are segregated into accounts with specific underlying investment objectives and are legally segregated from the Company. All assets of the separate account business are carried at fair value with an equal amount recorded for separate account liabilities. Fee income accruing to the Company related to separate accounts is primarily included within Other revenues on the Consolidated Statements of Operations. | |||||||||||
A number of separate account pension deposit contracts guarantee principal and an annual minimum rate of interest. If aggregate contract value in the separate account exceeds the fair value of the related assets, an additional Policyholders' funds liability is established. Certain of these contracts are subject to a fair value adjustment if terminated by the policyholder. | |||||||||||
Investments | |||||||||||
The Company classifies its fixed maturity securities and its equity securities as either available-for-sale or trading, and as such, they are carried at fair value. Changes in fair value of trading securities are reported within Net investment income on the Consolidated Statements of Operations. Changes in fair value related to available-for-sale securities are reported as a component of Other comprehensive income. The cost of fixed maturity securities classified as available-for-sale is adjusted for amortization of premiums and accretion of discounts to maturity, which are included in Net investment income on the Consolidated Statements of Operations. Losses may be recognized within Net realized investment gains (losses) on the Consolidated Statements of Operations when a decline in value is determined by the Company to be other-than-temporary. | |||||||||||
To the extent that unrealized gains on fixed income securities supporting long term care products and payout annuity contracts would result in a premium deficiency if those gains were realized, a related decrease in Deferred acquisition costs and/or increase in Insurance reserves are recorded, net of tax, as a reduction of net unrealized gains through Other comprehensive income (Shadow Adjustments). Shadow Adjustments, net of tax, decreased $979 million and increased $789 million for the years ended December 31, 2013 and 2012. At December 31, 2013 and 2012, net unrealized gains on investments included in Accumulated other comprehensive income (AOCI) were correspondingly reduced by $532 million and $1,511 million. | |||||||||||
For asset-backed securities included in fixed maturity securities, the Company recognizes income using an effective yield based on anticipated prepayments and the estimated economic life of the securities. When estimates of prepayments change, the effective yield is recalculated to reflect actual payments to date and anticipated future payments. The amortized cost of high credit quality securities is adjusted to the amount that would have existed had the new effective yield been applied since the acquisition of the securities. Such adjustments are reflected in Net investment income on the Consolidated Statements of Operations. Interest income on lower rated securities is determined using the prospective yield method. | |||||||||||
The Company's carrying value of investments in limited partnerships is its share of the net asset value of each partnership, as determined by the General Partner. Certain partnerships for which results are not available on a timely basis are reported on a lag, primarily three months or less. Changes in net asset values are accounted for under the equity method and recorded within Net investment income on the Consolidated Statements of Operations. | |||||||||||
Mortgage loans are commercial in nature, are carried at unpaid principal balance, net of unamortized fees and any valuation allowance, and are recorded once funded. Mortgage loans are considered to be impaired loans when it is probable that contractual principal and interest payments will not be collected. A valuation allowance is established for impaired loans to the extent that the present value of expected future cash flows discounted at the loan's original effective interest rate is less than the carrying value of the loan. Interest income from mortgage loans is recognized on an accrual basis using the effective yield method. Accrual of income is generally suspended for mortgage loans that are impaired and collection of principal and interest payments is unlikely. Mortgage loans are considered past due when full principal or interest payments have not been received according to contractual terms. | |||||||||||
Other invested assets are carried at fair value and include overseas deposits and certain derivative securities. Overseas deposits are primarily short-term government securities, agency securities, and corporate bonds held in trusts that are managed by Lloyd's. These funds are required of Lloyd's syndicates to protect policyholders in overseas markets and may be denominated in local currency. | |||||||||||
Short term investments are carried at fair value, with the exception of cash accounts earning interest, which are carried at cost and approximate fair value. Changes in fair value are reported as a component of Other comprehensive income. | |||||||||||
Purchases and sales of all securities are recorded on the trade date, except for private placement debt securities, including bank loan participations, which are recorded once funded. Realized investment gains and losses are determined on the basis of the cost or amortized cost of the specific securities sold. | |||||||||||
In the normal course of investing activities, the Company enters into relationships with variable interest entities (VIEs), primarily as a passive investor in certain limited partnerships and asset-backed securities issued by third-party VIEs. The Company is not the primary beneficiary of these VIEs, and therefore does not consolidate them. The Company determines whether it is the primary beneficiary of a VIE based on a qualitative assessment of the entity’s purpose, the nature of its operations, its capital structure, its contractual terms and the Company’s relative exposure to the related risks of the VIE. The Company’s maximum exposure to loss with respect to these investments is limited to the investment carrying values included in the Company’s Consolidated Balance Sheets and any unfunded commitments. | |||||||||||
A security is impaired if the fair value of the security is less than its cost adjusted for accretion, amortization and previously recorded other-than-temporary impairment (OTTI) losses, otherwise defined as an unrealized loss. When a security is impaired, the impairment is evaluated to determine whether it is temporary or other-than-temporary. | |||||||||||
Significant judgment is required in the determination of whether an OTTI loss has occurred for a security. The Company follows a consistent and systematic process for determining and recording an OTTI loss. The Company has established a committee responsible for the OTTI process. This committee, referred to as the Impairment Committee, is made up of three officers appointed by the Company’s Chief Financial Officer. The Impairment Committee is responsible for evaluating all securities in an unrealized loss position on at least a quarterly basis. | |||||||||||
The Impairment Committee’s assessment of whether an OTTI loss has occurred incorporates both quantitative and qualitative information. Fixed maturity securities that the Company intends to sell, or it more likely than not will be required to sell before recovery of amortized cost, are considered to be other-than-temporarily impaired and the entire difference between the amortized cost basis and fair value of the security is recognized as an OTTI loss in earnings. The remaining fixed maturity securities in an unrealized loss position are evaluated to determine if a credit loss exists. The factors considered by the Impairment Committee include (a) the financial condition and near term prospects of the issuer, (b) whether the debtor is current on interest and principal payments, (c) credit ratings of the securities and (d) general market conditions and industry or sector specific outlook. The Company also considers results and analysis of cash flow modeling for asset-backed securities, and when appropriate, other fixed maturity securities. The focus of the analysis for asset-backed securities is on assessing the sufficiency and quality of underlying collateral and timing of cash flows based on scenario tests. If the present value of the modeled expected cash flows equals or exceeds the amortized cost of a security, no credit loss is judged to exist and the asset-backed security is deemed to be temporarily impaired. If the present value of the expected cash flows is less than amortized cost, the security is judged to be other-than-temporarily impaired for credit reasons and that shortfall, referred to as the credit component, is recognized as an OTTI loss in earnings. The difference between the adjusted amortized cost basis and fair value, referred to as the non-credit component, is recognized as OTTI in Other comprehensive income. In subsequent reporting periods, a change in intent to sell or further credit impairment on a security whose fair value has not deteriorated will cause the non-credit component originally recorded as OTTI in Other comprehensive income to be recognized as an OTTI loss in earnings. | |||||||||||
The Company performs the discounted cash flow analysis using stressed scenarios to determine future expectations regarding recoverability. For asset-backed securities, significant assumptions enter into these cash flow projections including delinquency rates, probable risk of default, loss severity upon a default, over collateralization and interest coverage triggers, and credit support from lower level tranches. | |||||||||||
The Company applies the same impairment model as described above for the majority of non-redeemable preferred stock securities on the basis that these securities possess characteristics similar to debt securities and that the issuers maintain their ability to pay dividends. For all other equity securities, in determining whether the security is other-than-temporarily impaired, the Impairment Committee considers a number of factors including, but not limited to: (a) the length of time and the extent to which the fair value has been less than amortized cost, (b) the financial condition and near term prospects of the issuer, (c) the intent and ability of the Company to retain its investment for a period of time sufficient to allow for an anticipated recovery in value and (d) general market conditions and industry or sector specific outlook. | |||||||||||
Income Taxes | |||||||||||
The Company and its eligible subsidiaries (CNA Tax Group) are included in the consolidated federal income tax return of Loews and its eligible subsidiaries. The Company accounts for income taxes under the asset and liability method. Under the asset and liability method, deferred income taxes are recognized for temporary differences between the financial statement and tax return bases of assets and liabilities, based on enacted tax rates and other provisions of the tax law. The effect of a change in tax laws or rates on deferred tax assets and liabilities is recognized in income in the period in which such change is enacted. Future tax benefits are recognized to the extent that realization of such benefits is more likely than not, and a valuation allowance is established for any portion of a deferred tax asset that management believes will not be realized. | |||||||||||
Pension and Postretirement Benefits | |||||||||||
The Company recognizes the overfunded or underfunded status of its defined benefit plans in Other assets or Other liabilities on the Consolidated Balance Sheets. Changes in funded status related to prior service costs and credits and actuarial gains and losses are recognized in the year in which the changes occur through Other comprehensive income. Annual service cost, interest cost, expected return on plan assets, amortization of prior service costs and credits, and amortization of actuarial gains and losses are recognized in the Consolidated Statements of Operations. | |||||||||||
Stock-Based Compensation | |||||||||||
The Company records compensation expense using the fair value method for all awards it grants, modifies or cancels primarily on a straight-line basis over the requisite service period, generally three to four years. | |||||||||||
Foreign Currency | |||||||||||
Foreign currency translation gains and losses are reflected in Stockholders' equity as a component of Accumulated other comprehensive income. The Company's foreign subsidiaries' balance sheet accounts are translated at the exchange rates in effect at each reporting date and income statement accounts are either translated at the exchange rate on the date of the transaction or at the average exchange rates. Foreign currency transaction gains of $2 million, $12 million and $4 million were included in determining net income (loss) for the years ended December 31, 2013, 2012 and 2011. | |||||||||||
Property and Equipment | |||||||||||
Property and equipment are carried at cost less accumulated depreciation. Depreciation is based on the estimated useful lives of the various classes of property and equipment and is determined principally on the straight-line method. Furniture and fixtures are depreciated over seven years. Office equipment is depreciated over five years. The estimated lives for data processing equipment and software range from three to five years. Leasehold improvements are depreciated over the corresponding lease terms not to exceed the underlying asset life. The Company's owned buildings, and related capital improvements, are depreciated over periods not to exceed fifty years. | |||||||||||
Goodwill | |||||||||||
Goodwill represents the excess of purchase price over the fair value of the net assets of acquired entities and businesses. Goodwill related to Hardy may change from period to period as a result of foreign currency translation. | |||||||||||
Goodwill is tested for impairment annually or when certain triggering events require such tests. As a result of reviews completed for the year ended December 31, 2013, the Company determined that the estimated fair value of the reporting units were in excess of their carrying value including Goodwill. Changes in future periods in assumptions about the level of economic capital, business growth, earnings projections or the weighted average cost of capital could result in a goodwill impairment. | |||||||||||
Intangible Assets | |||||||||||
Intangible assets are reported within Other assets. Finite-lived intangible assets are amortized over their estimated useful lives. Indefinite-lived intangible assets are tested for impairment annually or when certain triggering events require such tests. | |||||||||||
Earnings (Loss) Per Share Data | |||||||||||
Earnings (loss) per share attributable to the Company's common stockholders is based on weighted average number of outstanding common shares. Basic earnings (loss) per share excludes the impact of dilutive securities and is computed by dividing Net income (loss) attributable to CNA by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. | |||||||||||
For the years ended December 31, 2013, 2012 and 2011, approximately 552 thousand, 417 thousand and 290 thousand potential shares attributable to exercises under stock-based employee compensation plans were included in the calculation of diluted earnings per share. For those same periods, approximately 111 thousand, 730 thousand and 1.1 million potential shares attributable to exercises under stock-based employee compensation plans were not included in the calculation of diluted earnings per share because the effect would have been antidilutive. | |||||||||||
Supplementary Cash Flow Information | |||||||||||
Cash payments made for interest were $164 million, $170 million and $175 million for the years ended December 31, 2013, 2012 and 2011. Cash payments made for income taxes were $129 million and $61 million for the years ended December 31, 2013 and 2011. Cash refunds received for income taxes were $29 million for the year ended December 31, 2012. |
Investments
Investments | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Investments [Abstract] | ' | |||||||||||||||||||||||
Investments | ' | |||||||||||||||||||||||
Note B. Investments | ||||||||||||||||||||||||
The significant components of net investment income are presented in the following table. | ||||||||||||||||||||||||
Net Investment Income | ||||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||||||||||||||
Fixed maturity securities | $ | 1,998 | $ | 2,022 | $ | 2,011 | ||||||||||||||||||
Short term investments | 3 | 5 | 8 | |||||||||||||||||||||
Limited partnership investments | 451 | 251 | 48 | |||||||||||||||||||||
Equity securities | 12 | 12 | 20 | |||||||||||||||||||||
Mortgage loans | 23 | 17 | 9 | |||||||||||||||||||||
Trading portfolio | 17 | 24 | 9 | |||||||||||||||||||||
Other | 2 | 7 | 7 | |||||||||||||||||||||
Gross investment income | 2,506 | 2,338 | 2,112 | |||||||||||||||||||||
Investment expense | (56 | ) | (56 | ) | (58 | ) | ||||||||||||||||||
Net investment income | $ | 2,450 | $ | 2,282 | $ | 2,054 | ||||||||||||||||||
As of December 31, 2013, the Company held no non-income producing fixed maturity securities. As of December 31, 2012, the Company held nine non-income producing fixed maturity securities aggregating $1 million of fair value. As of December 31, 2013 and 2012, no investments in a single issuer exceeded 10% of stockholders' equity, other than investments in securities issued by the U.S. Treasury and obligations of government-sponsored enterprises. | ||||||||||||||||||||||||
Net realized investment gains (losses) are presented in the following table. | ||||||||||||||||||||||||
Net Realized Investment Gains (Losses) | ||||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||||||||||||||
Net realized investment gains (losses): | ||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||
Gross realized gains | $ | 201 | $ | 232 | $ | 289 | ||||||||||||||||||
Gross realized losses | (146 | ) | (149 | ) | (311 | ) | ||||||||||||||||||
Net realized investment gains (losses) on fixed maturity securities | 55 | 83 | (22 | ) | ||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
Gross realized gains | 13 | 19 | 10 | |||||||||||||||||||||
Gross realized losses | (35 | ) | (42 | ) | (11 | ) | ||||||||||||||||||
Net realized investment gains (losses) on equity securities | (22 | ) | (23 | ) | (1 | ) | ||||||||||||||||||
Derivatives | (9 | ) | (2 | ) | — | |||||||||||||||||||
Short term investments and other | 7 | 5 | 21 | |||||||||||||||||||||
Net realized investment gains (losses) | $ | 31 | $ | 63 | $ | (2 | ) | |||||||||||||||||
Net change in unrealized gains on investments is presented in the following table. | ||||||||||||||||||||||||
Net Change in Unrealized Gains | ||||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||||||||||||||
Net change in unrealized gains on investments: | ||||||||||||||||||||||||
Fixed maturity securities | $ | (2,541 | ) | $ | 1,871 | $ | 1,442 | |||||||||||||||||
Equity securities | (15 | ) | 5 | (2 | ) | |||||||||||||||||||
Other | — | (1 | ) | (3 | ) | |||||||||||||||||||
Total net change in unrealized gains on investments | $ | (2,556 | ) | $ | 1,875 | $ | 1,437 | |||||||||||||||||
The components of OTTI losses recognized in earnings by asset type are summarized in the following table. | ||||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||||||||||||||
Fixed maturity securities available-for-sale: | ||||||||||||||||||||||||
Corporate and other bonds | $ | 22 | $ | 27 | $ | 95 | ||||||||||||||||||
States, municipalities and political subdivisions | — | 34 | — | |||||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||
Residential mortgage-backed | 19 | 50 | 105 | |||||||||||||||||||||
Other asset-backed | 2 | — | 6 | |||||||||||||||||||||
Total asset-backed | 21 | 50 | 111 | |||||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | — | 1 | — | |||||||||||||||||||||
Total fixed maturity securities available-for-sale | 43 | 112 | 206 | |||||||||||||||||||||
Equity securities available-for-sale: | ||||||||||||||||||||||||
Common stock | 8 | 6 | 8 | |||||||||||||||||||||
Preferred stock | 26 | 36 | 1 | |||||||||||||||||||||
Total equity securities available-for-sale | 34 | 42 | 9 | |||||||||||||||||||||
Short term investments | 1 | — | 1 | |||||||||||||||||||||
OTTI losses recognized in earnings | $ | 78 | $ | 154 | $ | 216 | ||||||||||||||||||
The following tables provide a summary of fixed maturity and equity securities. | ||||||||||||||||||||||||
Summary of Fixed Maturity and Equity Securities | ||||||||||||||||||||||||
December 31, 2013 | Cost or | Gross | Gross | Estimated | Unrealized | |||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | OTTI | ||||||||||||||||||||
(In millions) | Cost | Gains | Losses | Value | Losses (Gains) | |||||||||||||||||||
Fixed maturity securities available-for-sale: | ||||||||||||||||||||||||
Corporate and other bonds | $ | 19,352 | $ | 1,645 | $ | 135 | $ | 20,862 | $ | — | ||||||||||||||
States, municipalities and political subdivisions | 11,281 | 548 | 272 | 11,557 | — | |||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||
Residential mortgage-backed | 4,940 | 123 | 92 | 4,971 | (37 | ) | ||||||||||||||||||
Commercial mortgage-backed | 1,995 | 90 | 22 | 2,063 | (3 | ) | ||||||||||||||||||
Other asset-backed | 945 | 13 | 3 | 955 | — | |||||||||||||||||||
Total asset-backed | 7,880 | 226 | 117 | 7,989 | (40 | ) | ||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 139 | 6 | 1 | 144 | — | |||||||||||||||||||
Foreign government | 531 | 15 | 3 | 543 | — | |||||||||||||||||||
Redeemable preferred stock | 92 | 10 | — | 102 | — | |||||||||||||||||||
Total fixed maturity securities available-for-sale | 39,275 | 2,450 | 528 | 41,197 | $ | (40 | ) | |||||||||||||||||
Total fixed maturity securities trading | 36 | — | — | 36 | ||||||||||||||||||||
Equity securities available-for-sale: | ||||||||||||||||||||||||
Common stock | 36 | 9 | — | 45 | ||||||||||||||||||||
Preferred stock | 143 | 1 | 4 | 140 | ||||||||||||||||||||
Total equity securities available-for-sale | 179 | 10 | 4 | 185 | ||||||||||||||||||||
Total | $ | 39,490 | $ | 2,460 | $ | 532 | $ | 41,418 | ||||||||||||||||
December 31, 2012 | Cost or | Gross | Gross | Estimated | Unrealized | |||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | OTTI | ||||||||||||||||||||
(In millions) | Cost | Gains | Losses | Value | Losses (Gains) | |||||||||||||||||||
Fixed maturity securities available-for-sale: | ||||||||||||||||||||||||
Corporate and other bonds | $ | 19,530 | $ | 2,698 | $ | 21 | $ | 22,207 | $ | — | ||||||||||||||
States, municipalities and political subdivisions | 9,372 | 1,455 | 44 | 10,783 | — | |||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||
Residential mortgage-backed | 5,745 | 246 | 71 | 5,920 | (28 | ) | ||||||||||||||||||
Commercial mortgage-backed | 1,692 | 147 | 17 | 1,822 | (3 | ) | ||||||||||||||||||
Other asset-backed | 929 | 23 | — | 952 | — | |||||||||||||||||||
Total asset-backed | 8,366 | 416 | 88 | 8,694 | (31 | ) | ||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 172 | 11 | 1 | 182 | — | |||||||||||||||||||
Foreign government | 588 | 25 | — | 613 | — | |||||||||||||||||||
Redeemable preferred stock | 113 | 13 | 1 | 125 | — | |||||||||||||||||||
Total fixed maturity securities available-for-sale | 38,141 | 4,618 | 155 | 42,604 | $ | (31 | ) | |||||||||||||||||
Total fixed maturity securities trading | 29 | — | — | 29 | ||||||||||||||||||||
Equity securities available-for-sale: | ||||||||||||||||||||||||
Common stock | 38 | 14 | — | 52 | ||||||||||||||||||||
Preferred stock | 190 | 7 | — | 197 | ||||||||||||||||||||
Total equity securities available-for-sale | 228 | 21 | — | 249 | ||||||||||||||||||||
Total | $ | 38,398 | $ | 4,639 | $ | 155 | $ | 42,882 | ||||||||||||||||
The following tables summarize the estimated fair value and gross unrealized losses of available-for-sale fixed maturity and equity securities in a gross unrealized loss position by the length of time in which the securities have continuously been in that position. | ||||||||||||||||||||||||
Securities in a Gross Unrealized Loss Position | ||||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||
December 31, 2013 | Estimated | Gross | Estimated | Gross | Estimated | Gross | ||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | |||||||||||||||||||
(In millions) | Losses | Losses | Losses | |||||||||||||||||||||
Fixed maturity securities available-for-sale: | ||||||||||||||||||||||||
Corporate and other bonds | $ | 3,592 | $ | 129 | $ | 72 | $ | 6 | $ | 3,664 | $ | 135 | ||||||||||||
States, municipalities and political subdivisions | 3,251 | 197 | 129 | 75 | 3,380 | 272 | ||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||
Residential mortgage-backed | 1,293 | 29 | 343 | 63 | 1,636 | 92 | ||||||||||||||||||
Commercial mortgage-backed | 640 | 22 | — | — | 640 | 22 | ||||||||||||||||||
Other asset-backed | 269 | 3 | — | — | 269 | 3 | ||||||||||||||||||
Total asset-backed | 2,202 | 54 | 343 | 63 | 2,545 | 117 | ||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 13 | 1 | — | — | 13 | 1 | ||||||||||||||||||
Foreign government | 111 | 3 | — | — | 111 | 3 | ||||||||||||||||||
Total fixed maturity securities available-for-sale | 9,169 | 384 | 544 | 144 | 9,713 | 528 | ||||||||||||||||||
Equity securities available-for-sale: | ||||||||||||||||||||||||
Preferred stock | 87 | 4 | — | — | 87 | 4 | ||||||||||||||||||
Total | $ | 9,256 | $ | 388 | $ | 544 | $ | 144 | $ | 9,800 | $ | 532 | ||||||||||||
Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||
December 31, 2012 | Estimated | Gross | Estimated | Gross | Estimated | Gross | ||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | |||||||||||||||||||
(In millions) | Losses | Losses | Losses | |||||||||||||||||||||
Fixed maturity securities available-for-sale: | ||||||||||||||||||||||||
Corporate and other bonds | $ | 846 | $ | 13 | $ | 108 | $ | 8 | $ | 954 | $ | 21 | ||||||||||||
States, municipalities and political subdivisions | 254 | 5 | 165 | 39 | 419 | 44 | ||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||
Residential mortgage-backed | 583 | 5 | 452 | 66 | 1,035 | 71 | ||||||||||||||||||
Commercial mortgage-backed | 85 | 2 | 141 | 15 | 226 | 17 | ||||||||||||||||||
Total asset-backed | 668 | 7 | 593 | 81 | 1,261 | 88 | ||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 23 | 1 | — | — | 23 | 1 | ||||||||||||||||||
Redeemable preferred stock | 28 | 1 | — | — | 28 | 1 | ||||||||||||||||||
Total | $ | 1,819 | $ | 27 | $ | 866 | $ | 128 | $ | 2,685 | $ | 155 | ||||||||||||
Based on current facts and circumstances, the Company believes the unrealized losses presented in the December 31, 2013 Securities in a Gross Unrealized Loss Position table above, are primarily attributable to broader economic conditions, changes in interest rates and credit spreads, market illiquidity and other market factors, but are not indicative of the ultimate collectibility of the current amortized cost of the securities. The investments with longer duration, primarily included within the states, municipalities and political subdivision asset category, were more significantly impacted by changes in market interest rates. The Company has no current intent to sell these securities, nor is it more likely than not that it will be required to sell prior to recovery of amortized cost; accordingly, the Company has determined that there are no additional OTTI losses to be recorded at December 31, 2013. | ||||||||||||||||||||||||
The following table summarizes the activity for the years ended December 31, 2013, 2012 and 2011 related to the pretax credit loss component reflected in Retained earnings on fixed maturity securities still held at December 31, 2013, 2012 and 2011 for which a portion of an OTTI loss was recognized in Other comprehensive income. | ||||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||||||||||||||
Beginning balance of credit losses on fixed maturity securities | $ | 95 | $ | 92 | $ | 141 | ||||||||||||||||||
Additional credit losses for securities for which an OTTI loss was previously recognized | 2 | 23 | 39 | |||||||||||||||||||||
Credit losses for securities for which an OTTI loss was not previously recognized | — | 2 | 11 | |||||||||||||||||||||
Reductions for securities sold during the period | (23 | ) | (14 | ) | (67 | ) | ||||||||||||||||||
Reductions for securities the Company intends to sell or more likely than not will be required to sell | — | (8 | ) | (32 | ) | |||||||||||||||||||
Ending balance of credit losses on fixed maturity securities | $ | 74 | $ | 95 | $ | 92 | ||||||||||||||||||
Contractual Maturity | ||||||||||||||||||||||||
The following table summarizes available-for-sale fixed maturity securities by contractual maturity at December 31, 2013 and 2012. Actual maturities may differ from contractual maturities because certain securities may be called or prepaid with or without call or prepayment penalties. Securities not due at a single date are allocated based on weighted average life. | ||||||||||||||||||||||||
Contractual Maturity | ||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||
(In millions) | Cost or | Estimated | Cost or | Estimated | ||||||||||||||||||||
Amortized | Fair | Amortized | Fair | |||||||||||||||||||||
Cost | Value | Cost | Value | |||||||||||||||||||||
Due in one year or less | $ | 2,420 | $ | 2,455 | $ | 1,648 | $ | 1,665 | ||||||||||||||||
Due after one year through five years | 9,496 | 10,068 | 13,603 | 14,442 | ||||||||||||||||||||
Due after five years through ten years | 11,667 | 11,954 | 8,726 | 9,555 | ||||||||||||||||||||
Due after ten years | 15,692 | 16,720 | 14,164 | 16,942 | ||||||||||||||||||||
Total | $ | 39,275 | $ | 41,197 | $ | 38,141 | $ | 42,604 | ||||||||||||||||
Limited Partnerships | ||||||||||||||||||||||||
The carrying value of limited partnerships as of December 31, 2013 and 2012 was $2,720 million and $2,462 million, which includes undistributed earnings of $969 million and $768 million. Limited partnerships comprising 67% of the total carrying value are reported on a current basis through December 31, 2013 with no reporting lag, 16% are reported on a one month lag and the remainder are reported on more than a one month lag. As of December 31, 2013 and 2012, the Company had 87 and 79 active limited partnership investments. The number of limited partnerships held and the strategies employed provide diversification to the limited partnership portfolio and the overall invested asset portfolio. | ||||||||||||||||||||||||
Of the limited partnerships held, 74% and 80% at December 31, 2013 and 2012 employ hedge fund strategies that generate returns through investing in securities that are marketable while engaging in various management techniques primarily in public fixed income and equity markets. These hedge fund strategies include both long and short positions in fixed income, equity and derivative instruments. The hedge fund strategies may seek to generate gains from mispriced or undervalued securities, price differentials between securities, distressed investments, sector rotation, or various arbitrage disciplines. Within hedge fund strategies, approximately 51% were equity related, 28% pursued a multi-strategy approach, 17% were focused on distressed investments and 4% were fixed income related at December 31, 2013. | ||||||||||||||||||||||||
Limited partnerships representing 22% and 16% at December 31, 2013 and 2012 were invested in private debt and equity. The remaining were invested in various other partnerships including real estate. The ten largest limited partnership positions held totaled $1,471 million and $1,309 million as of December 31, 2013 and 2012. Based on the most recent information available regarding the Company’s percentage ownership of the individual limited partnerships, the carrying value reflected on the Consolidated Balance Sheets represents approximately 4% of the aggregate partnership equity at December 31, 2013 and 2012, and the related income reflected on the Consolidated Statements of Operations represents approximately 4%, 3%, and 4% of the changes in total partnership equity for the years ended December 31, 2013, 2012 and 2011. | ||||||||||||||||||||||||
While the Company generally does not invest in highly leveraged partnerships, there are risks which may result in losses due to short-selling, derivatives or other speculative investment practices. The use of leverage increases volatility generated by the underlying investment strategies. | ||||||||||||||||||||||||
The Company’s limited partnership investments contain withdrawal provisions that generally limit liquidity for a period of thirty days up to one year and in some cases do not permit withdrawals until the termination of the partnership. Typically, withdrawals require advance written notice of up to 90 days. | ||||||||||||||||||||||||
Commercial Mortgage Loans | ||||||||||||||||||||||||
Risks related to the recoverability of loan balances include declines in the estimated cash flows from underlying property leases, fair value of collateral and creditworthiness of tenants of credit tenant loan properties, where lease payments directly service the loan. The Company evaluates loans for impairment on a specific loan basis and identifies loans for evaluation of impairment based on the collection experience of each loan and other credit quality indicators such as debt service coverage ratio and the creditworthiness of the borrower or tenants of credit tenant loan properties. As of December 31, 2013 and 2012, there were no loans past due or in non-accrual status, and no valuation allowance was recorded. | ||||||||||||||||||||||||
Investment Commitments | ||||||||||||||||||||||||
As of December 31, 2013, the Company had committed approximately $381 million to future capital calls from various third-party limited partnership investments in exchange for an ownership interest in the related partnerships. | ||||||||||||||||||||||||
The Company invests in various privately placed debt securities, including bank loans, as part of its overall investment strategy and has committed to additional future purchases, sales and funding. As of December 31, 2013, the Company had commitments to purchase or fund additional amounts of $151 million and sell $145 million under the terms of such securities. | ||||||||||||||||||||||||
Investments on Deposit | ||||||||||||||||||||||||
Securities with carrying values of approximately $3.3 billion and $3.6 billion were deposited by the Company’s insurance subsidiaries under requirements of regulatory authorities and others as of December 31, 2013 and 2012. | ||||||||||||||||||||||||
Cash and securities with carrying values of approximately $353 million and $4 million were deposited with financial institutions as collateral for letters of credit as of December 31, 2013 and 2012. In addition, cash and securities were deposited in trusts with financial institutions to secure reinsurance and other obligations with various third parties. The carrying values of these deposits were approximately $294 million and $277 million as of December 31, 2013 and 2012. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Summary of Derivative Instruments [Abstract] | ' | |||||||||||
Derivative Financial Instruments | ' | |||||||||||
Note C. Derivative Financial Instruments | ||||||||||||
The Company may use derivatives in the normal course of business, primarily in an attempt to reduce its exposure to market risk (principally interest rate risk, credit risk, equity price risk and foreign currency risk) stemming from various assets and liabilities. The Company's principal objective under such strategies is to achieve the desired reduction in economic risk, even if the position does not receive hedge accounting treatment. | ||||||||||||
The Company may enter into interest rate swaps, futures and commitments to purchase securities to manage interest rate risk. Credit derivatives such as credit default swaps (CDS) are entered into to modify the credit risk inherent in certain investments. The Company may use foreign currency forward contracts to manage foreign currency risk. | ||||||||||||
In addition to the derivatives used for risk management purposes described above, the Company may also use derivatives for purposes of income enhancement. Income enhancement transactions are limited in scope and primarily involve the sale of covered options in which the Company receives a premium in exchange for selling a call or put option. | ||||||||||||
Credit exposure associated with non-performance by the counterparties to derivative instruments is generally limited to the uncollateralized fair value of the asset related to the instruments recognized on the Consolidated Balance Sheets. The Company generally requires that all over-the-counter derivative contracts be governed by an International Swaps and Derivatives Association Master Agreement, and exchanges collateral under the terms of these agreements with its derivative investment counterparties depending on the amount of the exposure and the credit rating of the counterparty. Gross estimated fair values of derivative positions are presented in Other invested assets and Other liabilities on the Consolidated Balance Sheet. The Company does not offset derivative positions against the fair value of collateral provided or positions subject to netting arrangements. There would be no significant difference in the balance included in such accounts if the estimated fair values were presented net for the periods ended December 31, 2013 and 2012. There was no cash collateral provided by the Company at December 31, 2013. The fair value of cash collateral provided by the Company was $1 million at December 31, 2012. There was no cash collateral received from counterparties held at December 31, 2013 or 2012. | ||||||||||||
A summary of the aggregate contractual or notional amounts and gross estimated fair values related to derivative financial instruments reported as Other invested assets or Other liabilities on the Consolidated Balance Sheets follows. The contractual or notional amounts for derivatives are used to calculate the exchange of contractual payments under the agreements and may not be representative of the potential for gain or loss on these instruments. | ||||||||||||
Derivative Financial Instruments | ||||||||||||
December 31, 2013 | Contractual/ | Estimated Fair Value | ||||||||||
Notional | ||||||||||||
(In millions) | Amount | Asset | (Liability) | |||||||||
Without hedge designation | ||||||||||||
Equity warrants | $ | 5 | $ | — | $ | — | ||||||
December 31, 2012 | Contractual/ | Estimated Fair Value | ||||||||||
Notional | ||||||||||||
(In millions) | Amount | Asset | (Liability) | |||||||||
Without hedge designation | ||||||||||||
Credit default swaps - purchased protection | $ | 20 | $ | — | $ | (1 | ) | |||||
Currency forwards | 59 | — | (2 | ) | ||||||||
Equity warrants | 5 | — | — | |||||||||
Total | $ | 84 | $ | — | $ | (3 | ) | |||||
During the year ended December 31, 2013, new derivative transactions entered into totaled $2,743 million in notional value while derivative termination activity totaled $2,822 million. This activity was primarily attributable to forward commitments for mortgage-backed securities, options, interest rate futures, and foreign currency forwards. During the year ended December 31, 2012, new derivative transactions entered into totaled $1,581 million in notional value while derivative termination activity totaled $1,543 million. This activity was primarily attributable to interest rate futures, forward commitments for mortgage-backed securities and foreign currency forwards. |
Fair_Value
Fair Value | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||||||||||||||
Fair Value | ' | |||||||||||||||||||||||||||||||||||||||
Note D. Fair Value | ||||||||||||||||||||||||||||||||||||||||
Fair value is the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following fair value hierarchy is used in selecting inputs, with the highest priority given to Level 1, as these are the most transparent or reliable. | ||||||||||||||||||||||||||||||||||||||||
Level 1 - Quoted prices for identical instruments in active markets. | ||||||||||||||||||||||||||||||||||||||||
Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets. | ||||||||||||||||||||||||||||||||||||||||
Level 3 - Valuations derived from valuation techniques in which one or more significant inputs are not observable. | ||||||||||||||||||||||||||||||||||||||||
Prices may fall within Level 1, 2 or 3 depending upon the methodologies and inputs used to estimate fair value for each specific security. In general the Company seeks to price securities using third-party pricing services. Securities not priced by pricing services are submitted to independent brokers for valuation and, if those are not available, internally developed pricing models are used to value assets using methodologies and inputs the Company believes market participants would use to value the assets. Prices obtained from third-party pricing services or brokers are not adjusted by the Company. | ||||||||||||||||||||||||||||||||||||||||
The Company performs control procedures over information obtained from pricing services and brokers to ensure prices received represent a reasonable estimate of fair value and to confirm representations regarding whether inputs are observable or unobservable. Procedures include i) the review of pricing service or broker pricing methodologies, ii) back-testing, where past fair value estimates are compared to actual transactions executed in the market on similar dates, iii) exception reporting, where changes in price, period-over-period, are reviewed and challenged with the pricing service or broker based on exception criteria, iv) deep dives, where the Company performs an independent analysis of the inputs and assumptions used to price individual securities and v) pricing validation, where prices received are compared to prices independently estimated by the Company. | ||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value | ||||||||||||||||||||||||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis are summarized below. | ||||||||||||||||||||||||||||||||||||||||
December 31, 2013 | Total | |||||||||||||||||||||||||||||||||||||||
Assets/(Liabilities) | ||||||||||||||||||||||||||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | at Fair Value | ||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||
Corporate and other bonds | $ | 33 | $ | 20,661 | $ | 204 | $ | 20,898 | ||||||||||||||||||||||||||||||||
States, municipalities and political subdivisions | — | 11,486 | 71 | 11,557 | ||||||||||||||||||||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed | — | 4,640 | 331 | 4,971 | ||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed | — | 1,912 | 151 | 2,063 | ||||||||||||||||||||||||||||||||||||
Other asset-backed | — | 509 | 446 | 955 | ||||||||||||||||||||||||||||||||||||
Total asset-backed | — | 7,061 | 928 | 7,989 | ||||||||||||||||||||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 116 | 28 | — | 144 | ||||||||||||||||||||||||||||||||||||
Foreign government | 81 | 462 | — | 543 | ||||||||||||||||||||||||||||||||||||
Redeemable preferred stock | 45 | 57 | — | 102 | ||||||||||||||||||||||||||||||||||||
Total fixed maturity securities | 275 | 39,755 | 1,203 | 41,233 | ||||||||||||||||||||||||||||||||||||
Equity securities | 126 | 48 | 11 | 185 | ||||||||||||||||||||||||||||||||||||
Other invested assets | — | 54 | — | 54 | ||||||||||||||||||||||||||||||||||||
Short term investments | 769 | 563 | — | 1,332 | ||||||||||||||||||||||||||||||||||||
Life settlement contracts, included in Other assets | — | — | 88 | 88 | ||||||||||||||||||||||||||||||||||||
Separate account business | 9 | 171 | 1 | 181 | ||||||||||||||||||||||||||||||||||||
Total assets | $ | 1,179 | $ | 40,591 | $ | 1,303 | $ | 43,073 | ||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||
Derivative financial instruments, included in Other liabilities | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||
Total liabilities | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||
December 31, 2012 | Total | |||||||||||||||||||||||||||||||||||||||
Assets/(Liabilities) | ||||||||||||||||||||||||||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | at Fair Value | ||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||
Corporate and other bonds | $ | 6 | $ | 22,011 | $ | 219 | $ | 22,236 | ||||||||||||||||||||||||||||||||
States, municipalities and political subdivisions | — | 10,687 | 96 | 10,783 | ||||||||||||||||||||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed | — | 5,507 | 413 | 5,920 | ||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed | — | 1,693 | 129 | 1,822 | ||||||||||||||||||||||||||||||||||||
Other asset-backed | — | 584 | 368 | 952 | ||||||||||||||||||||||||||||||||||||
Total asset-backed | — | 7,784 | 910 | 8,694 | ||||||||||||||||||||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 158 | 24 | — | 182 | ||||||||||||||||||||||||||||||||||||
Foreign government | 140 | 473 | — | 613 | ||||||||||||||||||||||||||||||||||||
Redeemable preferred stock | 40 | 59 | 26 | 125 | ||||||||||||||||||||||||||||||||||||
Total fixed maturity securities | 344 | 41,038 | 1,251 | 42,633 | ||||||||||||||||||||||||||||||||||||
Equity securities | 117 | 98 | 34 | 249 | ||||||||||||||||||||||||||||||||||||
Other invested assets | — | 58 | 1 | 59 | ||||||||||||||||||||||||||||||||||||
Short term investments | 987 | 799 | 6 | 1,792 | ||||||||||||||||||||||||||||||||||||
Life settlement contracts, included in Other assets | — | — | 100 | 100 | ||||||||||||||||||||||||||||||||||||
Separate account business | 4 | 306 | 2 | 312 | ||||||||||||||||||||||||||||||||||||
Total assets | $ | 1,452 | $ | 42,299 | $ | 1,394 | $ | 45,145 | ||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||
Derivative financial instruments, included in Other liabilities | $ | — | $ | (2 | ) | $ | (1 | ) | $ | (3 | ) | |||||||||||||||||||||||||||||
Total liabilities | $ | — | $ | (2 | ) | $ | (1 | ) | $ | (3 | ) | |||||||||||||||||||||||||||||
The tables below present a reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||||||
Level 3 | Balance at | Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss)* | Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss) | Purchases | Sales | Settlements | Transfers into | Transfers out | Balance at | Unrealized gains (losses) on Level 3 assets and liabilities held at December 31, 2013 recognized in net income (loss)* | ||||||||||||||||||||||||||||||
(In millions) | January 1, | Level 3 | of Level 3 | December 31, | ||||||||||||||||||||||||||||||||||||
2013 | 2013 | |||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||
Corporate and other bonds | $ | 219 | $ | 3 | $ | — | $ | 142 | $ | (116 | ) | $ | (44 | ) | $ | 51 | $ | (51 | ) | $ | 204 | $ | (2 | ) | ||||||||||||||||
States, municipalities and political subdivisions | 96 | (2 | ) | 4 | 122 | (79 | ) | (61 | ) | 18 | (27 | ) | 71 | — | ||||||||||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed | 413 | 4 | (14 | ) | 116 | (10 | ) | (75 | ) | 4 | (107 | ) | 331 | (3 | ) | |||||||||||||||||||||||||
Commercial mortgage-backed | 129 | — | 11 | 107 | (3 | ) | (11 | ) | 21 | (103 | ) | 151 | — | |||||||||||||||||||||||||||
Other asset-backed | 368 | 5 | (4 | ) | 314 | (197 | ) | (35 | ) | — | (5 | ) | 446 | (2 | ) | |||||||||||||||||||||||||
Total asset-backed | 910 | 9 | (7 | ) | 537 | (210 | ) | (121 | ) | 25 | (215 | ) | 928 | (5 | ) | |||||||||||||||||||||||||
Redeemable preferred stock | 26 | (1 | ) | — | — | — | (25 | ) | — | — | — | — | ||||||||||||||||||||||||||||
Total fixed maturity securities | 1,251 | 9 | (3 | ) | 801 | (405 | ) | (251 | ) | 94 | (293 | ) | 1,203 | (7 | ) | |||||||||||||||||||||||||
Equity securities | 34 | (27 | ) | 3 | 2 | — | — | — | (1 | ) | 11 | (27 | ) | |||||||||||||||||||||||||||
Other invested assets, including derivatives, net | — | — | — | — | (1 | ) | 1 | — | — | — | — | |||||||||||||||||||||||||||||
Short term investments | 6 | — | — | — | (6 | ) | — | — | — | — | — | |||||||||||||||||||||||||||||
Life settlement contracts | 100 | 13 | — | — | — | (25 | ) | — | — | 88 | (2 | ) | ||||||||||||||||||||||||||||
Separate account business | 2 | — | — | 1 | (2 | ) | — | — | — | 1 | — | |||||||||||||||||||||||||||||
Total | $ | 1,393 | $ | (5 | ) | $ | — | $ | 804 | $ | (414 | ) | $ | (275 | ) | $ | 94 | $ | (294 | ) | $ | 1,303 | $ | (36 | ) | |||||||||||||||
Level 3 | Balance at | Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss)* | Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss) | Purchases | Sales | Settlements | Transfers into | Transfers out | Balance at | Unrealized gains (losses) on Level 3 assets and liabilities held at December 31, 2012 recognized in net income (loss)* | ||||||||||||||||||||||||||||||
(In millions) | January 1, | Level 3 | of Level 3 | December 31, | ||||||||||||||||||||||||||||||||||||
2012 | 2012 | |||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||
Corporate and other bonds | $ | 482 | $ | 6 | $ | 4 | $ | 231 | $ | (136 | ) | $ | (88 | ) | $ | 45 | $ | (325 | ) | $ | 219 | $ | (3 | ) | ||||||||||||||||
States, municipalities and political subdivisions | 171 | — | — | 14 | — | (89 | ) | — | — | 96 | — | |||||||||||||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed | 452 | (14 | ) | 2 | 97 | — | (40 | ) | — | (84 | ) | 413 | (18 | ) | ||||||||||||||||||||||||||
Commercial mortgage-backed | 59 | 8 | 14 | 165 | (12 | ) | (28 | ) | 13 | (90 | ) | 129 | — | |||||||||||||||||||||||||||
Other asset-backed | 343 | 11 | 8 | 615 | (365 | ) | (128 | ) | — | (116 | ) | 368 | — | |||||||||||||||||||||||||||
Total asset-backed | 854 | 5 | 24 | 877 | (377 | ) | (196 | ) | 13 | (290 | ) | 910 | (18 | ) | ||||||||||||||||||||||||||
Redeemable preferred stock | — | — | (1 | ) | 53 | (26 | ) | — | — | — | 26 | — | ||||||||||||||||||||||||||||
Total fixed maturity securities | 1,507 | 11 | 27 | 1,175 | (539 | ) | (373 | ) | 58 | (615 | ) | 1,251 | (21 | ) | ||||||||||||||||||||||||||
Equity securities | 67 | (36 | ) | 6 | 27 | (16 | ) | — | — | (14 | ) | 34 | (38 | ) | ||||||||||||||||||||||||||
Other invested assets, including derivatives, net | 10 | — | — | — | — | (10 | ) | — | — | — | — | |||||||||||||||||||||||||||||
Short term investments | 27 | — | — | 23 | (4 | ) | (41 | ) | 1 | — | 6 | — | ||||||||||||||||||||||||||||
Life settlement contracts | 117 | 53 | — | — | — | (70 | ) | — | — | 100 | 11 | |||||||||||||||||||||||||||||
Separate account business | 23 | — | — | — | (21 | ) | — | — | — | 2 | — | |||||||||||||||||||||||||||||
Total | $ | 1,751 | $ | 28 | $ | 33 | $ | 1,225 | $ | (580 | ) | $ | (494 | ) | $ | 59 | $ | (629 | ) | $ | 1,393 | $ | (48 | ) | ||||||||||||||||
* Net realized and unrealized gains and losses shown above are reported in Net income (loss) as follows: | ||||||||||||||||||||||||||||||||||||||||
Major Category of Assets and Liabilities | Consolidated Statements of Operations Line Items | |||||||||||||||||||||||||||||||||||||||
Fixed maturity securities available-for-sale | Net realized investment gains (losses) | |||||||||||||||||||||||||||||||||||||||
Fixed maturity securities trading | Net investment income | |||||||||||||||||||||||||||||||||||||||
Equity securities | Net realized investment gains (losses) | |||||||||||||||||||||||||||||||||||||||
Other invested assets - Derivative financial instruments held in a trading portfolio | Net investment income | |||||||||||||||||||||||||||||||||||||||
Other invested assets - Derivative financial instruments not held in a trading portfolio | Net realized investment gains (losses) | |||||||||||||||||||||||||||||||||||||||
Other invested assets - Overseas deposits | Net investment income | |||||||||||||||||||||||||||||||||||||||
Life settlement contracts | Other revenues | |||||||||||||||||||||||||||||||||||||||
Securities shown in the Level 3 tables on the previous pages may be transferred in or out of Level 3 based on the availability of observable market information used to determine the fair value of the security. The availability of observable market information varies based on market conditions and trading volume and may cause securities to move in and out of Level 3 from reporting period to reporting period. There were no transfers between Level 1 and Level 2 during the year ended December 31, 2013. There were $106 million of transfers from Level 2 to Level 1 and $72 million of transfers from Level 1 to Level 2 during the year ended December 31, 2012. The Company's policy is to recognize transfers between levels at the beginning of quarterly reporting periods. | ||||||||||||||||||||||||||||||||||||||||
Valuation Methodologies and Inputs | ||||||||||||||||||||||||||||||||||||||||
The following section describes the valuation methodologies and relevant inputs used to measure different financial instruments at fair value, including an indication of the level in the fair value hierarchy in which the instruments are generally classified. | ||||||||||||||||||||||||||||||||||||||||
Fixed Maturity Securities | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities are valued using methodologies that model information generated by market transactions involving identical or comparable assets, as well as discounted cash flow methodologies. Common inputs include: prices from recently executed transactions of similar securities, broker/dealer quotes, benchmark yields, spreads off benchmark yields, interest rates, and U.S. Treasury or swap curves. Specifically for asset-backed securities, key inputs include prepayment and default projections based on past performance of the underlying collateral and current market data. | ||||||||||||||||||||||||||||||||||||||||
Level 1 securities include exchange traded bonds, highly liquid U.S. and foreign government bonds, and redeemable preferred stock, valued using quoted market prices. Level 2 securities include most other fixed maturity securities as the significant inputs are observable in the marketplace. Securities are generally assigned to Level 3 in cases where broker/dealer quotes are significant inputs to the valuation and there is a lack of transparency as to whether these quotes are based on information that is observable in the marketplace. Level 3 securities also include tax-exempt auction rate certificates and private placement debt securities. Fair value of auction rate securities is determined utilizing a pricing model with three primary inputs. The interest rate and spread inputs are observable from like instruments while the expected call date assumption is unobservable due to the uncertain nature of principal prepayments prior to maturity and the credit spread adjustment that is security specific. Fair value of certain private placement debt securities is determined using internal models with inputs that are not market observable. | ||||||||||||||||||||||||||||||||||||||||
Equity Securities | ||||||||||||||||||||||||||||||||||||||||
Level 1 equity securities include publicly traded securities valued using quoted market prices. Level 2 securities are primarily non-redeemable preferred stocks and common stocks valued using pricing for similar securities, recently executed transactions, broker/dealer quotes and other pricing models utilizing market observable inputs. Level 3 securities are priced using internal models with inputs that are not market observable. | ||||||||||||||||||||||||||||||||||||||||
Other Invested Assets | ||||||||||||||||||||||||||||||||||||||||
Level 1 securities include exchange traded derivatives, primarily futures, valued using quoted market prices. Level 2 securities include overseas deposits, which can be redeemed at net asset value in 90 days or less, and derivatives, primarily currency forwards valued using observable market forward rates. Over-the-counter derivatives, principally interest rate swaps, total return swaps, credit default swaps, equity warrants and options, are valued using inputs including broker/dealer quotes and are classified within Level 3 of the valuation hierarchy due to a lack of transparency as to whether these quotes are based on information that is observable in the marketplace. | ||||||||||||||||||||||||||||||||||||||||
Short Term Investments | ||||||||||||||||||||||||||||||||||||||||
Securities that are actively traded or have quoted prices are classified as Level 1. These securities include money market funds and treasury bills. Level 2 primarily includes commercial paper, for which all inputs are market observable. Fixed maturity securities purchased within one year of maturity are classified consistent with fixed maturity securities discussed above. Short term investments as presented in the tables above differ from the amounts presented on the Consolidated Balance Sheets because certain short term investments, such as time deposits, are not measured at fair value. | ||||||||||||||||||||||||||||||||||||||||
Life Settlement Contracts | ||||||||||||||||||||||||||||||||||||||||
The fair values of life settlement contracts are determined as the present value of the anticipated death benefits less anticipated premium payments based on contract terms that are distinct for each insured, as well as the Company's own assumptions for mortality, premium expense, and the rate of return that a buyer would require on the contracts, as no comparable market pricing data is available. | ||||||||||||||||||||||||||||||||||||||||
Separate Account Business | ||||||||||||||||||||||||||||||||||||||||
Separate account business includes fixed maturity securities, equities and short term investments. The valuation methodologies and inputs for these asset types have been described above. | ||||||||||||||||||||||||||||||||||||||||
Significant Unobservable Inputs | ||||||||||||||||||||||||||||||||||||||||
The table below presents quantitative information about the significant unobservable inputs utilized by the Company in the fair value measurements of Level 3 assets. Valuations for assets and liabilities not presented in the table below are primarily based on broker/dealer quotes for which there is a lack of transparency as to inputs used to develop the valuations. The quantitative detail of these unobservable inputs is neither provided nor reasonably available to the Company. | ||||||||||||||||||||||||||||||||||||||||
Assets | Fair Value at December 31, 2013 | Valuation Technique(s) | Unobservable Input(s) | Range | ||||||||||||||||||||||||||||||||||||
(In millions) | (Weighted Average) | |||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | $ | 142 | Discounted cash flow | Credit spread | 1.74% - 19.90% (3.98%) | |||||||||||||||||||||||||||||||||||
Equity securities | $ | 10 | Market approach | Private offering price | $360.12 - $4,267.66 per share ($1,147.95) | |||||||||||||||||||||||||||||||||||
Life settlement contracts | $ | 88 | Discounted cash flow | Discount rate risk premium | 9% | |||||||||||||||||||||||||||||||||||
Mortality assumption | 70% - 743% (191.6%) | |||||||||||||||||||||||||||||||||||||||
Assets | Fair Value at December 31, 2012 | Valuation Technique(s) | Unobservable Input(s) | Range | ||||||||||||||||||||||||||||||||||||
(In millions) | (Weighted Average) | |||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | $ | 121 | Discounted cash flow | Expected call date | 3.3 - 5.3 years (4.3 years) | |||||||||||||||||||||||||||||||||||
Credit spread adjustment | 0.02% - 0.48% (0.17%) | |||||||||||||||||||||||||||||||||||||||
$ | 72 | Market approach | Private offering price | $42.39 - $102.32 ($100.11) | ||||||||||||||||||||||||||||||||||||
Equity securities | $ | 34 | Market approach | Private offering price | $4.54 - $3,842.00 per share | |||||||||||||||||||||||||||||||||||
($571.17 per share) | ||||||||||||||||||||||||||||||||||||||||
Life settlement contracts | $ | 100 | Discounted cash flow | Discount rate risk premium | 9% | |||||||||||||||||||||||||||||||||||
Mortality assumption | 69% - 883% (208.9%) | |||||||||||||||||||||||||||||||||||||||
For fixed maturity securities, an increase to the expected call date and credit spread assumptions would result in a lower fair value measurement. For equity securities, an increase in the private offering price would result in a higher fair value measurement. For life settlement contracts, an increase in the discount rate risk premium or decrease in the mortality assumption would result in a lower fair value measurement. | ||||||||||||||||||||||||||||||||||||||||
Financial Assets and Liabilities Not Measured at Fair Value | ||||||||||||||||||||||||||||||||||||||||
The carrying amount and estimated fair value of the Company's financial instrument assets and liabilities which are not measured at fair value on the Consolidated Balance Sheets are listed in the tables below. | ||||||||||||||||||||||||||||||||||||||||
December 31, 2013 | Carrying | Estimated Fair Value | ||||||||||||||||||||||||||||||||||||||
(In millions) | Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||
Financial assets | ||||||||||||||||||||||||||||||||||||||||
Notes receivable for the issuance of common stock | $ | 23 | $ | — | $ | — | $ | 23 | $ | 23 | ||||||||||||||||||||||||||||||
Mortgage loans | 508 | — | — | 515 | 515 | |||||||||||||||||||||||||||||||||||
Financial liabilities | ||||||||||||||||||||||||||||||||||||||||
Premium deposits and annuity contracts | $ | 57 | $ | — | $ | — | $ | 58 | $ | 58 | ||||||||||||||||||||||||||||||
Short term debt | 549 | — | 575 | — | 575 | |||||||||||||||||||||||||||||||||||
Long term debt | 2,011 | — | 2,328 | — | 2,328 | |||||||||||||||||||||||||||||||||||
31-Dec-12 | Carrying | Estimated Fair Value | ||||||||||||||||||||||||||||||||||||||
(In millions) | Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||
Financial assets | ||||||||||||||||||||||||||||||||||||||||
Notes receivable for the issuance of common stock | $ | 21 | $ | — | $ | — | $ | 21 | $ | 21 | ||||||||||||||||||||||||||||||
Mortgage loans | 401 | — | — | 418 | 418 | |||||||||||||||||||||||||||||||||||
Financial liabilities | ||||||||||||||||||||||||||||||||||||||||
Premium deposits and annuity contracts | $ | 100 | $ | — | $ | — | $ | 104 | $ | 104 | ||||||||||||||||||||||||||||||
Short term debt | 13 | — | 13 | — | 13 | |||||||||||||||||||||||||||||||||||
Long term debt | 2,557 | — | 3,016 | — | 3,016 | |||||||||||||||||||||||||||||||||||
The following methods and assumptions were used to estimate the fair value of these financial assets and liabilities. | ||||||||||||||||||||||||||||||||||||||||
The fair values of Notes receivable for the issuance of common stock were estimated using discounted cash flows utilizing interest rates currently offered for obligations securitized with similar collateral, adjusted for specific note receivable risk. | ||||||||||||||||||||||||||||||||||||||||
The fair values of Mortgage loans were based on the present value of the expected future cash flows discounted at the current interest rate for origination of similar quality loans, adjusted for specific loan risk. | ||||||||||||||||||||||||||||||||||||||||
Premium deposits and annuity contracts were valued based on cash surrender values or estimated fair values of policyholder liabilities, net of amounts ceded related to sold business. | ||||||||||||||||||||||||||||||||||||||||
The Company's senior notes and debentures were valued based on observable market prices. The fair value for other debt was estimated using discounted cash flows based on current incremental borrowing rates for similar borrowing arrangements. | ||||||||||||||||||||||||||||||||||||||||
The carrying amounts reported on the Consolidated Balance Sheets for Cash, Short term investments not carried at fair value, Accrued investment income and certain other assets and other liabilities approximate fair value due to the short term nature of these items. These assets and liabilities are not listed in the tables above. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income Taxes | ' | |||||||||||
Note E. Income Taxes | ||||||||||||
The CNA Tax Group is included in the consolidated federal income tax return of Loews and its eligible subsidiaries. Loews and the Company have agreed that for each taxable year, the Company will 1) be paid by Loews the amount, if any, by which the Loews consolidated federal income tax liability is reduced by virtue of the inclusion of the CNA Tax Group in the Loews consolidated federal income tax return, or 2) pay to Loews an amount, if any, equal to the federal income tax that would have been payable by the CNA Tax Group filing a separate consolidated tax return. In the event that Loews should have a net operating loss in the future computed on the basis of filing a separate consolidated tax return without the CNA Tax Group, the Company may be required to repay tax recoveries previously received from Loews. This agreement may be canceled by either party upon 30 days written notice. | ||||||||||||
For the year ended December 31, 2013, the Company paid $89 million to Loews related to federal income taxes. For the years ended December 31, 2012 and 2011, the Company received from Loews $75 million and $10 million related to federal income taxes. | ||||||||||||
For 2011 through 2013, the IRS has accepted Loews and the Company into the Compliance Assurance Process (CAP), which is a voluntary program for large corporations. Under CAP, the IRS conducts a real-time audit and works contemporaneously with the Company to resolve any issues prior to the filing of the tax return. The Company believes that this approach should reduce tax-related uncertainties, if any. | ||||||||||||
At December 31, 2013 and 2012, there were no unrecognized tax benefits. | ||||||||||||
The Company recognizes interest accrued related to: 1) unrecognized tax benefits in Interest expense and 2) tax refund claims in Other revenues on the Consolidated Statements of Operations. The Company recognizes penalties (if any) in Income tax (expense) benefit on the Consolidated Statements of Operations. During 2013, the Company did not recognize any interest or penalties. During 2012, the Company recognized $2 million of interest income and no penalties. During 2011, the Company did not recognize any interest or penalties. There were no amounts accrued for interest or penalties at December 31, 2013 or 2012. | ||||||||||||
The following table provides a reconciliation between the Company's federal income tax (expense) benefit at statutory rates and the recorded income tax (expense) benefit. | ||||||||||||
Tax Reconciliation | ||||||||||||
Years ended December 31 | ||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||
Income tax expense at statutory rates | $ | (460 | ) | $ | (305 | ) | $ | (305 | ) | |||
Tax benefit from tax exempt income | 97 | 84 | 74 | |||||||||
Foreign taxes and credits | (1 | ) | (13 | ) | (3 | ) | ||||||
Taxes related to domestic affiliate | — | — | (21 | ) | ||||||||
Prior year tax adjustment | — | — | 20 | |||||||||
Other tax expense | (12 | ) | (10 | ) | (7 | ) | ||||||
Income tax expense | $ | (376 | ) | $ | (244 | ) | $ | (242 | ) | |||
At December 31, 2013, no deferred taxes are required on the undistributed earnings of subsidiaries subject to tax. | ||||||||||||
The following table provides the current and deferred components of the Company's income tax (expense) benefit. | ||||||||||||
Current and Deferred Taxes | ||||||||||||
Years ended December 31 | ||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||
Current tax expense | $ | (299 | ) | $ | (97 | ) | $ | (54 | ) | |||
Deferred tax expense | (77 | ) | (147 | ) | (188 | ) | ||||||
Total income tax expense | $ | (376 | ) | $ | (244 | ) | $ | (242 | ) | |||
Total income tax presented above includes foreign tax expense of approximately $24 million, $34 million and $27 million related to income from continuing foreign operations of approximately $101 million, $88 million and $75 million for the years ended December 31, 2013, 2012 and 2011. | ||||||||||||
The deferred tax effects of the significant components of the Company's deferred tax assets and liabilities are set forth in the table below. | ||||||||||||
Components of Net Deferred Tax Asset | ||||||||||||
31-Dec | ||||||||||||
(In millions) | 2013 | 2012 | ||||||||||
Deferred Tax Assets: | ||||||||||||
Insurance reserves: | ||||||||||||
Property and casualty claim and claim adjustment expense reserves | $ | 289 | $ | 352 | ||||||||
Unearned premium reserves | 178 | 162 | ||||||||||
Receivables | 50 | 60 | ||||||||||
Employee benefits | 187 | 384 | ||||||||||
Life settlement contracts | 46 | 45 | ||||||||||
Deferred retroactive reinsurance benefit | 66 | — | ||||||||||
Other assets | 149 | 160 | ||||||||||
Gross deferred tax assets | 965 | 1,163 | ||||||||||
Deferred Tax Liabilities: | ||||||||||||
Investment valuation differences | 68 | 38 | ||||||||||
Deferred acquisition costs | 232 | 238 | ||||||||||
Net unrealized gains | 383 | 737 | ||||||||||
Other liabilities | 62 | 57 | ||||||||||
Gross deferred tax liabilities | 745 | 1,070 | ||||||||||
Net deferred tax asset | $ | 220 | $ | 93 | ||||||||
At December 31, 2013, the CNA Tax Group had no loss carryforwards or tax credit carryforwards. | ||||||||||||
Although realization of deferred tax assets is not assured, management believes it is more likely than not that the recognized net deferred tax asset will be realized through recoupment of ordinary and capital taxes paid in prior carryback years and through future earnings, reversal of existing temporary differences and available tax planning strategies. As a result, no valuation allowance was recorded at December 31, 2013 or 2012. |
Claim_and_Claim_Adjustment_Exp
Claim and Claim Adjustment Expense Reserves | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Insurance Loss Reserves [Abstract] | ' | |||||||||||||||||||||||
Claim and Claim Adjustment Expense Reserves | ' | |||||||||||||||||||||||
Note F. Claim and Claim Adjustment Expense Reserves | ||||||||||||||||||||||||
The Company's property and casualty insurance claim and claim adjustment expense reserves represent the estimated amounts necessary to resolve all outstanding claims, including IBNR claims as of the reporting date. The Company's reserve projections are based primarily on detailed analysis of the facts in each case, the Company's experience with similar cases and various historical development patterns. Consideration is given to such historical patterns as field reserving trends and claims settlement practices, loss payments, pending levels of unpaid claims and product mix, as well as court decisions, economic conditions including inflation, and public attitudes. All of these factors can affect the estimation of claim and claim adjustment expense reserves. | ||||||||||||||||||||||||
Establishing claim and claim adjustment expense reserves, including claim and claim adjustment expense reserves for catastrophic events that have occurred, is an estimation process. Many factors can ultimately affect the final settlement of a claim and, therefore, the necessary reserve. Changes in the law, results of litigation, medical costs, the cost of repair materials and labor rates can all affect ultimate claim costs. In addition, time can be a critical part of reserving determinations since the longer the span between the incidence of a loss and the payment or settlement of the claim, the more variable the ultimate settlement amount can be. Accordingly, short-tail claims, such as property damage claims, tend to be more reasonably estimable than long-tail claims, such as workers' compensation, general liability and professional liability claims. Adjustments to prior year reserve estimates, if necessary, are reflected in the results of operations in the period that the need for such adjustments is determined. There can be no assurance that the Company's ultimate cost for insurance losses will not exceed current estimates. | ||||||||||||||||||||||||
Catastrophes are an inherent risk of the property and casualty insurance business and have contributed to material period-to-period fluctuations in the Company's results of operations and/or equity. The Company reported catastrophe losses, net of reinsurance, of $169 million, $391 million and $222 million for the years ended December 31, 2013, 2012 and 2011. Catastrophe losses in 2012 included Storm Sandy. | ||||||||||||||||||||||||
The table below provides a reconciliation between beginning and ending claim and claim adjustment expense reserves, including claim and claim adjustment expense reserves of the life company. | ||||||||||||||||||||||||
Reconciliation of Claim and Claim Adjustment Expense Reserves | ||||||||||||||||||||||||
As of and for the years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||||||||||||||
Reserves, beginning of year: | ||||||||||||||||||||||||
Gross | $ | 24,763 | $ | 24,303 | $ | 25,496 | ||||||||||||||||||
Ceded | 5,126 | 5,020 | 6,122 | |||||||||||||||||||||
Net reserves, beginning of year | 19,637 | 19,283 | 19,374 | |||||||||||||||||||||
Change in net reserves due to acquisition (disposition) of subsidiaries | — | 291 | (277 | ) | ||||||||||||||||||||
Net incurred claim and claim adjustment expenses: | ||||||||||||||||||||||||
Provision for insured events of current year | 5,114 | 5,273 | 4,904 | |||||||||||||||||||||
Decrease in provision for insured events of prior years | (115 | ) | (182 | ) | (429 | ) | ||||||||||||||||||
Amortization of discount | 154 | 145 | 135 | |||||||||||||||||||||
Total net incurred (a) | 5,153 | 5,236 | 4,610 | |||||||||||||||||||||
Net payments attributable to: | ||||||||||||||||||||||||
Current year events | (981 | ) | (988 | ) | (1,029 | ) | ||||||||||||||||||
Prior year events | (4,588 | ) | (4,280 | ) | (3,473 | ) | ||||||||||||||||||
Total net payments | (5,569 | ) | (5,268 | ) | (4,502 | ) | ||||||||||||||||||
Foreign currency translation adjustment and other | (104 | ) | 95 | 78 | ||||||||||||||||||||
Net reserves, end of year | 19,117 | 19,637 | 19,283 | |||||||||||||||||||||
Ceded reserves, end of year | 4,972 | 5,126 | 5,020 | |||||||||||||||||||||
Gross reserves, end of year | $ | 24,089 | $ | 24,763 | $ | 24,303 | ||||||||||||||||||
(a) | Total net incurred above does not agree to Insurance claims and policyholders' benefits as reflected on the Consolidated Statements of Operations due to amounts related to retroactive reinsurance deferred gain accounting, uncollectible reinsurance and loss deductible receivables, and benefit expenses related to future policy benefits and policyholders' funds, which are not reflected in the table above. | |||||||||||||||||||||||
The changes in provision for insured events of prior years (net prior year claim and claim adjustment expense reserve development) were as follows. | ||||||||||||||||||||||||
Reserve Development | ||||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||||||||||||||
Property and casualty reserve development | $ | (115 | ) | $ | (180 | ) | $ | (429 | ) | |||||||||||||||
Life reserve development in life company | — | (2 | ) | — | ||||||||||||||||||||
Total | $ | (115 | ) | $ | (182 | ) | $ | (429 | ) | |||||||||||||||
The following tables summarize the gross and net carried reserves as of December 31, 2013 and 2012. | ||||||||||||||||||||||||
Gross and Net Carried Claim and Claim Adjustment Expense Reserves | ||||||||||||||||||||||||
December 31, 2013 | CNA Specialty | CNA Commercial | Hardy | Life & | Corporate | Total | ||||||||||||||||||
(In millions) | Group Non-Core | & Other Non-Core | ||||||||||||||||||||||
Gross Case Reserves | $ | 2,270 | $ | 5,829 | $ | 275 | $ | 2,748 | $ | 1,140 | $ | 12,262 | ||||||||||||
Gross IBNR Reserves | 4,419 | 4,820 | 111 | 310 | 2,167 | 11,827 | ||||||||||||||||||
Total Gross Carried Claim and Claim Adjustment Expense Reserves | $ | 6,689 | $ | 10,649 | $ | 386 | $ | 3,058 | $ | 3,307 | $ | 24,089 | ||||||||||||
Net Case Reserves | $ | 2,024 | $ | 5,358 | $ | 159 | $ | 2,352 | $ | 283 | $ | 10,176 | ||||||||||||
Net IBNR Reserves | 4,142 | 4,269 | 75 | 271 | 184 | 8,941 | ||||||||||||||||||
Total Net Carried Claim and Claim Adjustment Expense Reserves | $ | 6,166 | $ | 9,627 | $ | 234 | $ | 2,623 | $ | 467 | $ | 19,117 | ||||||||||||
December 31, 2012 | CNA Specialty | CNA Commercial | Hardy | Life & | Corporate | Total | ||||||||||||||||||
(In millions) | Group Non-Core | & Other Non-Core | ||||||||||||||||||||||
Gross Case Reserves | $ | 2,292 | $ | 6,146 | $ | 333 | $ | 2,690 | $ | 1,207 | $ | 12,668 | ||||||||||||
Gross IBNR Reserves | 4,456 | 5,180 | 188 | 316 | 1,955 | 12,095 | ||||||||||||||||||
Total Gross Carried Claim and Claim Adjustment Expense Reserves | $ | 6,748 | $ | 11,326 | $ | 521 | $ | 3,006 | $ | 3,162 | $ | 24,763 | ||||||||||||
Net Case Reserves | $ | 2,008 | $ | 5,611 | $ | 192 | $ | 2,253 | $ | 292 | $ | 10,356 | ||||||||||||
Net IBNR Reserves | 4,104 | 4,600 | 82 | 275 | 220 | 9,281 | ||||||||||||||||||
Total Net Carried Claim and Claim Adjustment Expense Reserves | $ | 6,112 | $ | 10,211 | $ | 274 | $ | 2,528 | $ | 512 | $ | 19,637 | ||||||||||||
Net Prior Year Development | ||||||||||||||||||||||||
Changes in estimates of claim and allocated claim adjustment expense reserves and premium accruals, net of reinsurance, for prior years are defined as net prior year development. These changes can be favorable or unfavorable. The following tables and discussion include the net prior year development recorded for CNA Specialty, CNA Commercial, Hardy and Corporate & Other Non-Core segments for the years ended December 31, 2013, 2012 and 2011. | ||||||||||||||||||||||||
Favorable net prior year development of $9 million, $11 million and $29 million was recorded in the Life & Group Non-Core segment for the years ended December 31, 2013, 2012 and 2011. | ||||||||||||||||||||||||
Net Prior Year Development | ||||||||||||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||||||
(In millions) | CNA | CNA Commercial | Hardy | Corporate | Total | |||||||||||||||||||
Specialty | & Other | |||||||||||||||||||||||
Non-Core | ||||||||||||||||||||||||
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development | $ | (230 | ) | $ | 104 | $ | 14 | $ | (6 | ) | $ | (118 | ) | |||||||||||
Pretax (favorable) unfavorable premium development | (17 | ) | (9 | ) | (17 | ) | 1 | (42 | ) | |||||||||||||||
Total pretax (favorable) unfavorable net prior year development | $ | (247 | ) | $ | 95 | $ | (3 | ) | $ | (5 | ) | $ | (160 | ) | ||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||||||
(In millions) | CNA | CNA Commercial | Hardy | Corporate | Total | |||||||||||||||||||
Specialty | & Other | |||||||||||||||||||||||
Non-Core | ||||||||||||||||||||||||
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development | $ | (135 | ) | $ | (46 | ) | $ | (11 | ) | $ | (13 | ) | $ | (205 | ) | |||||||||
Pretax (favorable) unfavorable premium development | (15 | ) | (35 | ) | 3 | 1 | (46 | ) | ||||||||||||||||
Total pretax (favorable) unfavorable net prior year development | $ | (150 | ) | $ | (81 | ) | $ | (8 | ) | $ | (12 | ) | $ | (251 | ) | |||||||||
Year ended December 31, 2011 | ||||||||||||||||||||||||
(In millions) | CNA | CNA Commercial | Corporate | Total | ||||||||||||||||||||
Specialty | & Other | |||||||||||||||||||||||
Non-Core | ||||||||||||||||||||||||
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development | $ | (217 | ) | $ | (204 | ) | $ | (2 | ) | $ | (423 | ) | ||||||||||||
Pretax (favorable) unfavorable premium development | (28 | ) | 21 | (1 | ) | (8 | ) | |||||||||||||||||
Total pretax (favorable) unfavorable net prior year development | $ | (245 | ) | $ | (183 | ) | $ | (3 | ) | $ | (431 | ) | ||||||||||||
For the year ended December 31, 2013, favorable premium development for Hardy was recorded related to a commutation as discussed later in this note. | ||||||||||||||||||||||||
For the year ended December 31, 2012, favorable premium development was recorded for CNA Commercial primarily due to premium adjustments on auditable policies arising from increased exposures. | ||||||||||||||||||||||||
For the year ended December 31, 2011, favorable premium development was recorded for CNA Specialty primarily due to changes in estimates of exposures in medical professional liability tail coverages. Unfavorable premium development for CNA Commercial was recorded due to a reduction of ultimate premium estimates relating to retrospectively rated policies, partially offset by premium adjustments on auditable policies due to increased exposures. | ||||||||||||||||||||||||
CNA Specialty | ||||||||||||||||||||||||
The following table provides further detail of the net prior year claim and allocated claim adjustment expense reserve development (development) recorded for the CNA Specialty segment for the years ended December 31, 2013, 2012 and 2011. | ||||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||||||||||||||
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development: | ||||||||||||||||||||||||
Medical Professional Liability | $ | (35 | ) | $ | (32 | ) | $ | (92 | ) | |||||||||||||||
Other Professional Liability and Management Liability | (101 | ) | (22 | ) | (78 | ) | ||||||||||||||||||
Surety | (74 | ) | (63 | ) | (47 | ) | ||||||||||||||||||
Warranty | (3 | ) | (5 | ) | (13 | ) | ||||||||||||||||||
Other | (17 | ) | (13 | ) | 13 | |||||||||||||||||||
Total pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development | $ | (230 | ) | $ | (135 | ) | $ | (217 | ) | |||||||||||||||
2013 | ||||||||||||||||||||||||
Overall, favorable development for medical professional liability reflects favorable experience in accident years 2009 and prior. Unfavorable development was recorded for accident years 2010 and 2011 due to higher than expected large loss activity. | ||||||||||||||||||||||||
Overall, favorable development for other professional liability and management liability was related to better than expected loss emergence in accident years 2010 and prior. Unfavorable development was recorded in accident year 2011 related to an increase in severity in management liability. | ||||||||||||||||||||||||
Favorable development for surety coverages was primarily due to better than expected large loss emergence in accident years 2011 and prior. | ||||||||||||||||||||||||
Other includes standard property and casualty coverages provided to CNA Specialty customers. Favorable development for other coverages was primarily due to better than expected loss emergence in property coverages primarily in accident years 2010 and subsequent. | ||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||
Favorable development for medical professional liability was primarily due to better than expected loss emergence in accident years 2008 and prior. | ||||||||||||||||||||||||
Overall, favorable development for other professional liability and management liability was primarily due to better than expected loss emergence in accident years 2003 through 2007. Unfavorable development was recorded in our lawyer coverages in accident years 2010 and 2011 primarily due to increased frequency and severity. | ||||||||||||||||||||||||
Favorable development for surety coverages was primarily due to better than expected loss emergence in accident years 2010 and prior. | ||||||||||||||||||||||||
Overall, favorable development for other coverages was primarily due to favorable loss emergence in property and workers' compensation coverages in accident years 2005 and subsequent. Unfavorable development was recorded in accident year 2009 primarily due to an unfavorable outcome on an individual general liability claim. | ||||||||||||||||||||||||
2011 | ||||||||||||||||||||||||
Favorable development for medical professional liability was primarily due to favorable case incurred emergence in nurses, physicians, excess institutions and primary institutions in accident years 2008 and prior. | ||||||||||||||||||||||||
Favorable development for other professional liability and management liability was driven by better than expected loss emergence in the life agents, accountants, and architects & engineers business in accident years 2008 and prior. In addition, favorable development in the Company's European book of business was primarily due to favorable outcomes on several large losses in financial directors and officers and errors and omissions coverages in accident years 2003 and prior. | ||||||||||||||||||||||||
Favorable development for surety coverages was primarily due to a decrease in the estimated loss on a large national contractor in accident year 2005 and better than expected loss emergence in accident years 2009 and prior. | ||||||||||||||||||||||||
Favorable development in warranty was driven by favorable policy year experience on an aggregate stop loss policy covering the Company's non-insurance warranty subsidiary. | ||||||||||||||||||||||||
Unfavorable development for other coverages was primarily due to increased frequency of large claims in auto and workers' compensation coverages in accident years 2009 and 2010. | ||||||||||||||||||||||||
CNA Commercial | ||||||||||||||||||||||||
The following table provides further detail of the development recorded for the CNA Commercial segment for the years ended December 31, 2013, 2012 and 2011. | ||||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||||||||||||||
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development: | ||||||||||||||||||||||||
Commercial Auto | $ | 15 | $ | 27 | $ | (98 | ) | |||||||||||||||||
General Liability | 59 | (64 | ) | (39 | ) | |||||||||||||||||||
Workers' Compensation | 92 | 15 | 36 | |||||||||||||||||||||
Property and Other | (62 | ) | (24 | ) | (103 | ) | ||||||||||||||||||
Total pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development | $ | 104 | $ | (46 | ) | $ | (204 | ) | ||||||||||||||||
2013 | ||||||||||||||||||||||||
Unfavorable development for commercial auto coverages was primarily due to higher than expected frequency in accident years 2011 and 2012 and large loss emergence in accident years 2009 and 2010. | ||||||||||||||||||||||||
Unfavorable development for general liability coverages was primarily related to increased incurred loss severity in accident years 2010 through 2012. | ||||||||||||||||||||||||
Unfavorable development for workers' compensation includes the Company's response to legislation enacted during 2013 related to the New York Fund for Reopened Cases. The law change necessitated an increase in reserves as re-opened workers' compensation claims can no longer be turned over to the state for handling and payment after December 31, 2013. Additional unfavorable development was recorded in accident year 2012 related to increased frequency and severity on claims related to Defense Base Act contractors and in accident year 2010 due to higher than expected large losses and increased severity in the state of California. | ||||||||||||||||||||||||
Favorable development for property and other coverages was primarily related to favorable outcomes on litigated catastrophe claims in accident years 2005 and 2010 as well as favorable loss emergence in non-catastrophe losses in accident years 2010 through 2012. | ||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||
Unfavorable development for commercial auto coverages was primarily due to higher than expected loss emergence in accident years 2007 and subsequent and higher than expected frequency in accident year 2011. | ||||||||||||||||||||||||
Overall, favorable development for general liability coverages was primarily due to better than expected loss emergence in accident years 2006 and subsequent related to umbrella business and 2003 and prior related to large account business. Unfavorable development was recorded in accident years 2009 through 2011 related to several large losses. | ||||||||||||||||||||||||
Overall, unfavorable development for workers' compensation was primarily due to increased medical severity in accident years 2010 and 2011 and the recognition of losses related to favorable premium development in accident year 2011. Favorable development was recorded in accident years 2001 and prior reflecting favorable experience. | ||||||||||||||||||||||||
Overall, favorable development for property and other coverages was due to a favorable outcome on an individual claim in accident year 2005 and favorable loss emergence in non-catastrophe losses in accident years 2009 and 2010. Unfavorable development was recorded in accident year 2011 related to several large losses. | ||||||||||||||||||||||||
2011 | ||||||||||||||||||||||||
Favorable development for commercial auto coverages was due to lower than expected severity on bodily injury claims and favorable claim emergence on umbrella policies in accident years 2006 and prior. | ||||||||||||||||||||||||
Favorable development in the general liability coverages was primarily due to favorable claim emergence in accident years 2007 and prior related to both primary and umbrella liability coverages. | ||||||||||||||||||||||||
Unfavorable development for workers' compensation was related to increased medical severity in accident year 2010. | ||||||||||||||||||||||||
Overall, favorable development for property and other coverages was due to decreased frequency of large losses in commercial multi-peril coverages primarily in accident year 2010, favorable loss emergence related to catastrophe claims in accident year 2008 and favorable loss emergence related to non-catastrophe claims in accident years 2010 and prior. This development amount also included unfavorable development related to unallocated claim adjustment expenses. | ||||||||||||||||||||||||
Hardy | ||||||||||||||||||||||||
The following table provides further detail of the development recorded for the Hardy segment for the years ended December 31, 2013 and 2012. | ||||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2013 | 2012 | ||||||||||||||||||||||
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development: | ||||||||||||||||||||||||
Marine and Aviation | $ | 2 | $ | — | ||||||||||||||||||||
Non-Marine Property | 12 | (7 | ) | |||||||||||||||||||||
Property Treaty | (5 | ) | (3 | ) | ||||||||||||||||||||
Specialty | (6 | ) | (1 | ) | ||||||||||||||||||||
Commutation | 11 | — | ||||||||||||||||||||||
Total pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development | $ | 14 | $ | (11 | ) | |||||||||||||||||||
2013 | ||||||||||||||||||||||||
Unfavorable development for non-marine property was primarily due to 2011 catastrophe events, including the Thailand floods and the New Zealand Lyttelton earthquake, and one large non-catastrophe claim. | ||||||||||||||||||||||||
Favorable development for property treaty was due to favorable emergence of losses from catastrophe and non-catastrophe claims in 2011 and 2012. | ||||||||||||||||||||||||
Favorable development for specialty was primarily due to favorable outcomes on several large losses and favorable claim emergence. | ||||||||||||||||||||||||
The commutation of a third-party capital provider's 15% participation in the 2012 year of account resulted in recognition of the 15% share of year of account premiums, losses and expenses. | ||||||||||||||||||||||||
A&EP Reserves | ||||||||||||||||||||||||
In 2010, Continental Casualty Company (CCC) together with several of the Company’s insurance subsidiaries completed a transaction with National Indemnity Company (NICO), a subsidiary of Berkshire Hathaway Inc., under which substantially all of the Company’s legacy A&EP liabilities were ceded to NICO (Loss Portfolio Transfer or LPT). Under the terms of the NICO transaction, the Company ceded approximately $1.6 billion of net A&EP claim and allocated claim adjustment expense reserves to NICO under a retroactive reinsurance agreement with an aggregate limit of $4 billion. The $1.6 billion of claim and allocated claim adjustment expense reserves ceded to NICO was net of $1.2 billion of ceded claim and allocated claim adjustment expense reserves under existing third-party reinsurance contracts. The NICO aggregate reinsurance limit also covers credit risk on the existing third-party reinsurance related to these liabilities. The Company paid NICO a reinsurance premium of $2 billion and transferred to NICO billed third-party reinsurance receivables related to A&EP claims with a net book value of $215 million, resulting in total consideration of $2.2 billion. | ||||||||||||||||||||||||
The following table displays the impact of the Loss Portfolio Transfer on the Consolidated Statements of Operations. | ||||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||||||||||||||
Net A&EP adverse development before consideration of LPT | $ | 363 | $ | 261 | $ | 84 | ||||||||||||||||||
Provision for uncollectible third-party reinsurance on A&EP | 140 | — | — | |||||||||||||||||||||
Additional amounts ceded under LPT | 503 | 261 | 84 | |||||||||||||||||||||
Retroactive reinsurance benefit recognized | (314 | ) | (261 | ) | (84 | ) | ||||||||||||||||||
Pretax impact of unrecognized deferred retroactive reinsurance benefit | $ | 189 | $ | — | $ | — | ||||||||||||||||||
During 2013, 2012, and 2011, unfavorable development was recorded for accident years 2000 and prior related to A&EP claims due to an increase in ultimate claim severity and higher than anticipated claim reporting, as well as increased defense costs. Additionally, in 2013 the Company recognized a provision for uncollectible third-party reinsurance which increased the expected recovery from NICO. | ||||||||||||||||||||||||
The Loss Portfolio Transfer is a retroactive reinsurance contract. In the event that the cumulative claim and allocated claim adjustment expenses ceded under the Loss Portfolio Transfer exceed the consideration paid, the resulting gain from such excess is deferred. A portion of the deferred gain is cumulatively recognized in earnings in the period such excess arises as if the revised estimate was available at the inception date of the Loss Portfolio Transfer. | ||||||||||||||||||||||||
In the fourth quarter of 2013, the cumulative amounts ceded under the Loss Portfolio Transfer of $2.5 billion exceeded the $2.2 billion consideration paid, resulting in a $189 million deferred retroactive reinsurance gain. This deferred benefit will be recognized in earnings in future periods in proportion to actual recoveries under the Loss Portfolio Transfer. Over the life of the contract, there is no economic impact as long as any additional losses are within the limit under the contract. | ||||||||||||||||||||||||
NICO established a collateral trust account as security for its obligations to the Company. The fair value of the collateral trust account at December 31, 2013 was $3.1 billion. In addition, Berkshire Hathaway Inc. guaranteed the payment obligations of NICO up to the full aggregate reinsurance limit as well as certain of NICO’s performance obligations under the trust agreement. NICO is responsible for claims handling and billing and collection from third-party reinsurers related to the Company’s A&EP claims. |
Legal_Proceedings_and_Continge
Legal Proceedings and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2013 | |
Legal Proceedings and Contingent Liabilities [Abstract] | ' |
Legal Proceedings and Contingent Liabilities | ' |
Note G. Legal Proceedings and Contingent Liabilities | |
The Company is a party to routine litigation incidental to its business, which, based on the facts and circumstances currently known, is not material to the Consolidated Financial Statements. |
Reinsurance
Reinsurance | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
Reinsurance Disclosures [Abstract] | ' | ||||||||||||||||||
Reinsurance | ' | ||||||||||||||||||
Note H. Reinsurance | |||||||||||||||||||
The Company cedes insurance to reinsurers to limit its maximum loss, provide greater diversification of risk, minimize exposures on larger risks and to exit certain lines of business. The ceding of insurance does not discharge the primary liability of the Company. A credit exposure exists with respect to property and casualty and life reinsurance ceded to the extent that any reinsurer is unable to meet its obligations or to the extent that the reinsurer disputes the liabilities assumed under reinsurance agreements. Property and casualty reinsurance coverages are tailored to the specific risk characteristics of each product line and the Company's retained amount varies by type of coverage. Reinsurance contracts are purchased to protect specific lines of business such as property and workers' compensation. Corporate catastrophe reinsurance is also purchased for property and workers' compensation exposure. Currently, most reinsurance contracts are purchased on an excess of loss basis. The Company also utilizes facultative reinsurance in certain lines. In addition, the Company assumes reinsurance, primarily through Hardy and as a member of various reinsurance pools and associations. | |||||||||||||||||||
The following table summarizes the amounts receivable from reinsurers at December 31, 2013 and 2012. | |||||||||||||||||||
Components of Reinsurance Receivables | |||||||||||||||||||
31-Dec | |||||||||||||||||||
(In millions) | 2013 | 2012 | |||||||||||||||||
Reinsurance receivables related to insurance reserves: | |||||||||||||||||||
Ceded claim and claim adjustment expenses | $ | 4,972 | $ | 5,126 | |||||||||||||||
Ceded future policy benefits | 733 | 759 | |||||||||||||||||
Ceded policyholders' funds | 35 | 35 | |||||||||||||||||
Reinsurance receivables related to paid losses | 348 | 311 | |||||||||||||||||
Reinsurance receivables | 6,088 | 6,231 | |||||||||||||||||
Allowance for uncollectible reinsurance | (71 | ) | (73 | ) | |||||||||||||||
Reinsurance receivables, net of allowance for uncollectible reinsurance | $ | 6,017 | $ | 6,158 | |||||||||||||||
The Company has established an allowance for uncollectible reinsurance receivables. The Company reviews the allowance quarterly and adjusts the allowance as necessary to reflect changes in estimates of uncollectible balances. The allowance may also be reduced related to write-offs of reinsurance receivable balances. | |||||||||||||||||||
The Company attempts to mitigate its credit risk related to reinsurance by entering into reinsurance arrangements with reinsurers that have credit ratings above certain levels, and by obtaining collateral. On a limited basis, the Company may enter into reinsurance agreements with reinsurers that are not rated, primarily captive reinsurers. The primary methods of obtaining collateral are through reinsurance trusts, letters of credit and funds withheld balances. Such collateral was approximately $3.9 billion and $3.7 billion at December 31, 2013 and 2012. | |||||||||||||||||||
The Company's largest recoverables from a single reinsurer at December 31, 2013, including prepaid reinsurance premiums, were approximately $2.9 billion from subsidiaries of Berkshire Hathaway Group, $850 million from subsidiaries of Swiss Re Group, and $350 million from subsidiaries of the Hartford Insurance Group. The recoverable from the Berkshire Hathaway Group includes amounts related to third-party reinsurance for which NICO has assumed the credit risk under the terms of the Loss Portfolio Transfer as discussed in Note F. | |||||||||||||||||||
The effects of reinsurance on earned premiums and written premiums for the years ended December 31, 2013, 2012 and 2011 are shown in the following tables. | |||||||||||||||||||
Components of Earned Premiums | |||||||||||||||||||
(In millions) | Direct | Assumed | Ceded | Net | Assumed/ | ||||||||||||||
Net % | |||||||||||||||||||
2013 Earned Premiums | |||||||||||||||||||
Property and casualty | $ | 9,063 | $ | 258 | $ | 2,609 | $ | 6,712 | 3.8 | % | |||||||||
Accident and health | 512 | 48 | 1 | 559 | 8.6 | % | |||||||||||||
Life | 49 | — | 49 | — | — | ||||||||||||||
Total earned premiums | $ | 9,624 | $ | 306 | $ | 2,659 | $ | 7,271 | 4.2 | % | |||||||||
2012 Earned Premiums | |||||||||||||||||||
Property and casualty | $ | 8,354 | $ | 197 | $ | 2,229 | $ | 6,322 | 3.1 | % | |||||||||
Accident and health | 514 | 47 | 1 | 560 | 8.4 | % | |||||||||||||
Life | 51 | — | 51 | — | — | ||||||||||||||
Total earned premiums | $ | 8,919 | $ | 244 | $ | 2,281 | $ | 6,882 | 3.5 | % | |||||||||
2011 Earned Premiums | |||||||||||||||||||
Property and casualty | $ | 7,858 | $ | 95 | $ | 1,919 | $ | 6,034 | 1.6 | % | |||||||||
Accident and health | 521 | 50 | 2 | 569 | 8.8 | % | |||||||||||||
Life | 55 | — | 55 | — | — | ||||||||||||||
Total earned premiums | $ | 8,434 | $ | 145 | $ | 1,976 | $ | 6,603 | 2.2 | % | |||||||||
Components of Written Premiums | |||||||||||||||||||
(In millions) | Direct | Assumed | Ceded | Net | Assumed/ | ||||||||||||||
Net % | |||||||||||||||||||
2013 Written Premiums | |||||||||||||||||||
Property and casualty | $ | 9,103 | $ | 249 | $ | 2,556 | $ | 6,796 | 3.7 | % | |||||||||
Accident and health | 506 | 47 | 1 | 552 | 8.5 | % | |||||||||||||
Life | 49 | — | 49 | — | — | ||||||||||||||
Total written premiums | $ | 9,658 | $ | 296 | $ | 2,606 | $ | 7,348 | 4 | % | |||||||||
2012 Written Premiums | |||||||||||||||||||
Property and casualty | $ | 8,467 | $ | 169 | $ | 2,225 | $ | 6,411 | 2.6 | % | |||||||||
Accident and health | 507 | 47 | 1 | 553 | 8.5 | % | |||||||||||||
Life | 51 | — | 51 | — | — | ||||||||||||||
Total written premiums | $ | 9,025 | $ | 216 | $ | 2,277 | $ | 6,964 | 3.1 | % | |||||||||
2011 Written Premiums | |||||||||||||||||||
Property and casualty | $ | 7,976 | $ | 102 | $ | 1,857 | $ | 6,221 | 1.6 | % | |||||||||
Accident and health | 529 | 50 | 2 | 577 | 8.7 | % | |||||||||||||
Life | 55 | — | 55 | — | — | ||||||||||||||
Total written premiums | $ | 8,560 | $ | 152 | $ | 1,914 | $ | 6,798 | 2.2 | % | |||||||||
Included in the direct and ceded earned premiums for the years ended December 31, 2013, 2012 and 2011 are $2,156 million, $1,794 million and $1,500 million related to property business that is 100% reinsured under a significant third-party captive program. The third-party captives that participate in this program are affiliated with the non-insurance company policyholders, therefore this program provides a means for the policyholders to self-insure this property risk. The Company receives and retains a ceding commission. | |||||||||||||||||||
Life and accident and health premiums are primarily from long duration contracts; property and casualty premiums are primarily from short duration contracts. | |||||||||||||||||||
Insurance claims and policyholders' benefits reported on the Consolidated Statements of Operations are net of reinsurance recoveries of $1,527 million, $1,514 million and $1,285 million for the years ended December 31, 2013, 2012 and 2011, including $712 million, $814 million and $790 million related to the significant third-party captive program discussed above. | |||||||||||||||||||
The impact of reinsurance on life insurance inforce at December 31, 2013, 2012 and 2011 is shown in the following table. | |||||||||||||||||||
Components of Life Insurance Inforce | |||||||||||||||||||
(In millions) | Direct | Assumed | Ceded | Net | |||||||||||||||
2013 | $ | 5,127 | $ | — | $ | 5,118 | $ | 9 | |||||||||||
2012 | 5,713 | — | 5,702 | 11 | |||||||||||||||
2011 | 6,528 | — | 6,515 | 13 | |||||||||||||||
As of December 31, 2013 and 2012, the Company has ceded $1,066 million and $1,131 million of claim and claim adjustment expense reserves, future policy benefits and policyholders' funds as a result of business operations sold in prior years. Subject to certain exceptions, the purchasers assumed the third-party reinsurance credit risk of the sold business. |
Debt
Debt | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Debt Disclosure [Text Block] | ' | |||||||
Note I. Debt | ||||||||
Debt is composed of the following obligations. | ||||||||
Debt | ||||||||
31-Dec | ||||||||
(In millions) | 2013 | 2012 | ||||||
Short term debt: | ||||||||
Senior notes of CNAF, 5.850%, face amount of $549, due December 15, 2014 | $ | 549 | $ | — | ||||
Other debt | — | 13 | ||||||
Total short term debt | 549 | 13 | ||||||
Long term debt: | ||||||||
Senior notes of CNAF: | ||||||||
5.850%, face amount of $549, due December 15, 2014 | — | 548 | ||||||
6.500%, face amount of $350, due August 15, 2016 | 349 | 348 | ||||||
6.950%, face amount of $150, due January 15, 2018 | 149 | 149 | ||||||
7.350%, face amount of $350, due November 15, 2019 | 348 | 348 | ||||||
5.875%, face amount of $500, due August 15, 2020 | 497 | 496 | ||||||
5.750%, face amount of $400, due August 15, 2021 | 397 | 397 | ||||||
Debenture of CNAF, 7.250%, face amount of $243, due November 15, 2023 | 241 | 241 | ||||||
Subordinated variable rate debt of Hardy, face amount of $30, due September 15, 2036 | 30 | 30 | ||||||
Total long term debt | 2,011 | 2,557 | ||||||
Total debt | $ | 2,560 | $ | 2,570 | ||||
In 2013, CCC became a member of the Federal Home Loan Bank of Chicago (FHLBC). FHLBC membership provides participants with access to additional sources of liquidity through various programs and services. As a requirement of membership in the FHLBC, CCC acquired $16 million of FHLBC stock giving it access to approximately $330 million of additional liquidity. As of December 31, 2013, CCC has no outstanding borrowings from the FHLBC. | ||||||||
In 2012, the Company entered into a credit agreement with a syndicate of banks. The credit agreement established a four-year $250 million senior unsecured revolving credit facility which is intended to be used for general corporate purposes. At the Company's election, the commitments under the credit agreement may be increased from time to time up to an additional aggregate amount of $100 million, and there is an option to extend the facility for an additional year prior to the second anniversary of the closing date subject to applicable consents. Under the credit agreement, the Company is required to pay a facility fee which would adjust automatically in the event of a change in the Company's financial ratings. The credit agreement includes several covenants, including maintenance of a minimum consolidated net worth and a specified ratio of consolidated indebtedness to consolidated total capitalization. The minimum consolidated net worth, as defined as of December 31, 2013, was $8.2 billion. As of December 31, 2013, we had no outstanding borrowings under the credit agreement. | ||||||||
The Company's remaining debt obligations contain customary covenants for investment grade issuers. The Company is in compliance with all covenants as of and for the year ended December 31, 2013. | ||||||||
The combined aggregate maturities for debt at December 31, 2013 are presented in the following table. | ||||||||
Maturity of Debt | ||||||||
(In millions) | ||||||||
2014 | $ | 549 | ||||||
2015 | — | |||||||
2016 | 350 | |||||||
2017 | — | |||||||
2018 | 150 | |||||||
Thereafter | 1,523 | |||||||
Less discount | (12 | ) | ||||||
Total | $ | 2,560 | ||||||
Benefit_Plans
Benefit Plans | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
Benefit Plans | ' | |||||||||||||||||||||||
Note J. Benefit Plans | ||||||||||||||||||||||||
Pension and Postretirement Health Care Benefit Plans | ||||||||||||||||||||||||
CNA sponsors noncontributory pension plans, primarily through the CNA Retirement Plan, typically covering full-time employees age 21 and over that have completed at least one year or 1,000 hours of service. | ||||||||||||||||||||||||
Effective January 1, 2000, the CNA Retirement Plan was closed to new participants. Existing participants at that time were given a choice to either continue to accrue benefits under the CNA Retirement Plan or to cease accruals at December 31, 1999. Employees who chose to continue to accrue benefits under the plan will receive a benefit based on their years of credited service and highest 60 months of compensation at termination. Compensation is defined as regular salary, eligible bonuses and overtime. Employees who elected to cease accruals at December 31, 1999 received the present value of their accrued benefit in an accrued pension account that is credited with interest based on the annual rate of interest on 30-year Treasury securities. These employees also receive certain enhanced employer contributions in the CNA Savings and Capital Accumulation Plan. | ||||||||||||||||||||||||
CNA's funding policy for defined benefit pension plans is to make contributions in accordance with applicable governmental regulatory requirements with consideration of the funded status of the plans. | ||||||||||||||||||||||||
CNA provides certain health care benefits to eligible retired employees, their covered dependents and their beneficiaries primarily through the CNA Health and Group Benefits Program. These benefits have largely been eliminated for active employees. | ||||||||||||||||||||||||
The following table provides a reconciliation of benefit obligations and plan assets for the years ended December 31, 2013 and 2012. | ||||||||||||||||||||||||
Funded Status | ||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Benefit obligation at January 1 | $ | 3,271 | $ | 3,003 | $ | 47 | $ | 49 | ||||||||||||||||
Changes in benefit obligation: | ||||||||||||||||||||||||
Service cost | 12 | 12 | 1 | — | ||||||||||||||||||||
Interest cost | 121 | 135 | 1 | 2 | ||||||||||||||||||||
Participants' contributions | — | — | 5 | 5 | ||||||||||||||||||||
Actuarial (gain) loss | (289 | ) | 266 | (3 | ) | 3 | ||||||||||||||||||
Benefits paid | (165 | ) | (164 | ) | (12 | ) | (12 | ) | ||||||||||||||||
Settlements | (8 | ) | — | — | — | |||||||||||||||||||
Foreign currency translation and other | 1 | 19 | 1 | — | ||||||||||||||||||||
Benefit obligation at December 31 | 2,943 | 3,271 | 40 | 47 | ||||||||||||||||||||
Fair value of plan assets at January 1 | 2,425 | 2,212 | — | — | ||||||||||||||||||||
Change in plan assets: | ||||||||||||||||||||||||
Actual return on plan assets | 311 | 245 | — | — | ||||||||||||||||||||
Company contributions | 92 | 115 | 7 | 7 | ||||||||||||||||||||
Participants' contributions | — | — | 5 | 5 | ||||||||||||||||||||
Benefits paid | (165 | ) | (164 | ) | (12 | ) | (12 | ) | ||||||||||||||||
Settlements | (8 | ) | — | — | — | |||||||||||||||||||
Foreign currency translation and other | 1 | 17 | — | — | ||||||||||||||||||||
Fair value of plan assets at December 31 | 2,656 | 2,425 | — | — | ||||||||||||||||||||
Funded status | $ | (287 | ) | $ | (846 | ) | $ | (40 | ) | $ | (47 | ) | ||||||||||||
Amounts recognized on the Consolidated Balance Sheets at December 31: | ||||||||||||||||||||||||
Other assets | $ | 9 | $ | — | $ | — | $ | — | ||||||||||||||||
Other liabilities | (296 | ) | (846 | ) | (40 | ) | (47 | ) | ||||||||||||||||
Net amount recognized | $ | (287 | ) | $ | (846 | ) | $ | (40 | ) | $ | (47 | ) | ||||||||||||
Amounts recognized in Accumulated other comprehensive income, not yet recognized in net periodic cost (benefit): | ||||||||||||||||||||||||
Prior service credit | $ | — | $ | — | $ | (98 | ) | $ | (116 | ) | ||||||||||||||
Net actuarial loss | 745 | 1,213 | 8 | 11 | ||||||||||||||||||||
Net amount recognized | $ | 745 | $ | 1,213 | $ | (90 | ) | $ | (105 | ) | ||||||||||||||
The accumulated benefit obligation for all defined benefit pension plans was $2,889 million and $3,187 million at December 31, 2013 and 2012. | ||||||||||||||||||||||||
The components of net periodic cost (benefit) are presented in the following table. | ||||||||||||||||||||||||
Net Periodic Cost (Benefit) | ||||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||||||||||||||
Pension cost (benefit) | ||||||||||||||||||||||||
Service cost | $ | 12 | $ | 12 | $ | 13 | ||||||||||||||||||
Interest cost on projected benefit obligation | 121 | 135 | 146 | |||||||||||||||||||||
Expected return on plan assets | (181 | ) | (171 | ) | (172 | ) | ||||||||||||||||||
Amortization of net actuarial (gain) loss | 47 | 39 | 25 | |||||||||||||||||||||
Settlement loss | 3 | — | — | |||||||||||||||||||||
Net periodic pension cost (benefit) | $ | 2 | $ | 15 | $ | 12 | ||||||||||||||||||
Postretirement cost (benefit) | ||||||||||||||||||||||||
Service cost | $ | 1 | $ | — | $ | 1 | ||||||||||||||||||
Interest cost on projected benefit obligation | 1 | 2 | 3 | |||||||||||||||||||||
Amortization of prior service credit | (18 | ) | (18 | ) | (19 | ) | ||||||||||||||||||
Amortization of net actuarial (gain) loss | 2 | 1 | — | |||||||||||||||||||||
Net periodic postretirement cost (benefit) | $ | (14 | ) | $ | (15 | ) | $ | (15 | ) | |||||||||||||||
The amounts recognized in Other comprehensive income are presented in the following table. | ||||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||||||||||||||
Pension and postretirement benefits | ||||||||||||||||||||||||
Amounts arising during the period | $ | 422 | $ | (195 | ) | $ | (325 | ) | ||||||||||||||||
Reclassification adjustment relating to prior service credit | (18 | ) | (18 | ) | (19 | ) | ||||||||||||||||||
Reclassification adjustment relating to actuarial loss | 49 | 40 | 25 | |||||||||||||||||||||
Total increase (decrease) in Other comprehensive income | $ | 453 | $ | (173 | ) | $ | (319 | ) | ||||||||||||||||
The table below presents the estimated amounts to be recognized from Accumulated other comprehensive income into net periodic cost (benefit) during 2014. | ||||||||||||||||||||||||
(In millions) | Pension | Postretirement Benefits | ||||||||||||||||||||||
Benefits | ||||||||||||||||||||||||
Amortization of prior service credit | $ | — | $ | (18 | ) | |||||||||||||||||||
Amortization of net actuarial loss | 25 | — | ||||||||||||||||||||||
Total estimated amounts to be recognized | $ | 25 | $ | (18 | ) | |||||||||||||||||||
Actuarial assumptions used for the CNA Retirement Plan and CNA Health and Group Benefits Program to determine benefit obligations are set forth in the following table. | ||||||||||||||||||||||||
Actuarial Assumptions for Benefit Obligations | ||||||||||||||||||||||||
31-Dec | 2013 | 2012 | ||||||||||||||||||||||
Pension benefits | ||||||||||||||||||||||||
Discount rate | 4.65 | % | 3.8 | % | ||||||||||||||||||||
Expected long term rate of return | 7.5 | 7.75 | ||||||||||||||||||||||
Rate of compensation increases | 3.99 | 4.066 | ||||||||||||||||||||||
Postretirement benefits | ||||||||||||||||||||||||
Discount rate | 3.6 | % | 2.8 | % | ||||||||||||||||||||
Actuarial assumptions used for the CNA Retirement Plan and CNA Health and Group Benefits Program to determine net cost or benefit are set forth in the following table. | ||||||||||||||||||||||||
Actuarial Assumptions for Net Cost or Benefit | ||||||||||||||||||||||||
Years ended December 31 | 2013 | 2012 | 2011 | |||||||||||||||||||||
Pension benefits | ||||||||||||||||||||||||
Discount rate | 3.8 | % | 4.6 | % | 5.375 | % | ||||||||||||||||||
Expected long term rate of return | 7.75 | 8 | 8 | |||||||||||||||||||||
Rate of compensation increases | 4.066 | 4.125 | 5.03 | |||||||||||||||||||||
Postretirement benefits | ||||||||||||||||||||||||
Discount rate | 2.8 | % | 3.75 | % | 4.375 | % | ||||||||||||||||||
In determining the expected long term rate of return on plan assets assumption for the CNA Retirement Plan, CNA considered the historical performance of the benefit plan investment portfolio as well as long term market return expectations based on the investment mix of the portfolio. | ||||||||||||||||||||||||
The CNA Health and Group Benefits Program has limited its share of the health care trend rate to a cost-of-living adjustment of 4% per year. For all participants, the employer subsidy on health care costs will not increase by more than 4% per year. As a result, the assumed health care cost trend rate used in measuring the accumulated postretirement benefit obligation for the CNA Health and Group Benefits Program was 4% per year in 2013, 2012 and 2011. | ||||||||||||||||||||||||
CNA employs a total return approach whereby a mix of equity, limited partnerships and fixed maturity securities are used to maximize the long term return of plan assets for a prudent level of risk and to manage cash flows according to plan requirements. The intent of this strategy is to minimize the Company's expense related to funding the plan by outperforming plan liabilities over the long run. Risk tolerance is established after careful consideration of the plan liabilities, plan funded status and corporate financial conditions. In addition, alternative investments, including limited partnerships, are used to enhance risk adjusted long term returns while improving portfolio diversification. At December 31, 2013, the plan had committed approximately $102 million to future capital calls from various third-party limited partnership investments in exchange for an ownership interest in the related partnerships. Derivatives may be used to gain market exposure in an efficient and timely manner. Investment risk is measured and monitored on an ongoing basis through annual liability measurements, periodic asset/liability studies and quarterly investment portfolio reviews. | ||||||||||||||||||||||||
Pension plan assets measured at fair value on a recurring basis are summarized below. | ||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | Total Assets | ||||||||||||||||||||
at Fair Value | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||
Corporate and other bonds | $ | — | $ | 505 | $ | 15 | $ | 520 | ||||||||||||||||
States, municipalities and political subdivisions | — | 73 | — | 73 | ||||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||
Residential mortgage-backed | — | 130 | — | 130 | ||||||||||||||||||||
Commercial mortgage-backed | — | 106 | — | 106 | ||||||||||||||||||||
Other asset-backed | — | 12 | — | 12 | ||||||||||||||||||||
Total asset-backed | — | 248 | — | 248 | ||||||||||||||||||||
Total fixed maturity securities | — | 826 | 15 | 841 | ||||||||||||||||||||
Equity securities | 480 | 117 | 8 | 605 | ||||||||||||||||||||
Derivative financial instruments | 2 | — | — | 2 | ||||||||||||||||||||
Short term investments | 45 | 49 | — | 94 | ||||||||||||||||||||
Limited partnerships: | ||||||||||||||||||||||||
Hedge funds | — | 647 | 322 | 969 | ||||||||||||||||||||
Private equity | — | — | 114 | 114 | ||||||||||||||||||||
Total limited partnerships | — | 647 | 436 | 1,083 | ||||||||||||||||||||
Other assets | — | 31 | — | 31 | ||||||||||||||||||||
Total assets | $ | 527 | $ | 1,670 | $ | 459 | $ | 2,656 | ||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | Total Assets | ||||||||||||||||||||
at Fair Value | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||
Corporate and other bonds | $ | — | $ | 436 | $ | 11 | $ | 447 | ||||||||||||||||
States, municipalities and political subdivisions | — | 91 | — | 91 | ||||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||
Residential mortgage-backed | — | 161 | — | 161 | ||||||||||||||||||||
Commercial mortgage-backed | — | 105 | — | 105 | ||||||||||||||||||||
Total asset-backed | — | 266 | — | 266 | ||||||||||||||||||||
Total fixed maturity securities | — | 793 | 11 | 804 | ||||||||||||||||||||
Equity securities | 386 | 102 | 5 | 493 | ||||||||||||||||||||
Derivative financial instruments | 1 | — | — | 1 | ||||||||||||||||||||
Short term investments | 37 | 82 | — | 119 | ||||||||||||||||||||
Limited partnerships: | ||||||||||||||||||||||||
Hedge funds | — | 537 | 359 | 896 | ||||||||||||||||||||
Private equity | — | — | 62 | 62 | ||||||||||||||||||||
Total limited partnerships | — | 537 | 421 | 958 | ||||||||||||||||||||
Other assets | — | 40 | — | 40 | ||||||||||||||||||||
Investment contracts with insurance company | — | — | 10 | 10 | ||||||||||||||||||||
Total assets | $ | 424 | $ | 1,554 | $ | 447 | $ | 2,425 | ||||||||||||||||
The limited partnership investments are recorded at fair value, which represents the plan's share of net asset value of each partnership, as determined by the General Partner. Level 2 includes limited partnership investments which can be redeemed at net asset value in 90 days or less. Level 3 includes limited partnership investments with withdrawal provisions greater than 90 days, or for which withdrawals are not permitted until the termination of the partnership. Within hedge fund strategies, approximately 58% are equity related, 37% pursue a multi-strategy approach and 5% are focused on distressed investments at December 31, 2013. | ||||||||||||||||||||||||
The fair value of the insurance company guaranteed investment contracts is an estimate of the amount that would be received in an orderly sale to a market participant at the measurement date. The amount the plan would receive from the contract holder if the contracts were terminated is the primary input and is unobservable. The guaranteed investment contracts are therefore classified as Level 3 investments. | ||||||||||||||||||||||||
For a discussion of the fair value levels and the valuation methodologies used to measure fixed maturity securities, equities, derivatives and short term investments, see Note D. | ||||||||||||||||||||||||
The tables below present a reconciliation for all pension plan assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2013 and 2012. | ||||||||||||||||||||||||
Level 3 | Balance at January 1, 2013 | Actual return on assets still held at December 31, 2013 | Actual return on assets sold during the year ended December 31, 2013 | Purchases, sales, and settlements | Net transfers into (out of) Level 3 | Balance at December 31, 2013 | ||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||
Corporate and other bonds | $ | 11 | $ | (1 | ) | $ | — | $ | 5 | $ | — | $ | 15 | |||||||||||
Equity securities | 5 | 3 | — | — | — | 8 | ||||||||||||||||||
Limited partnerships: | ||||||||||||||||||||||||
Hedge funds | 359 | 56 | — | (77 | ) | (16 | ) | 322 | ||||||||||||||||
Private equity | 62 | — | — | 52 | — | 114 | ||||||||||||||||||
Total limited partnerships | 421 | 56 | — | (25 | ) | (16 | ) | 436 | ||||||||||||||||
Investment contracts with insurance company | 10 | — | — | (10 | ) | — | — | |||||||||||||||||
Total | $ | 447 | $ | 58 | $ | — | $ | (30 | ) | $ | (16 | ) | $ | 459 | ||||||||||
Level 3 | Balance at January 1, 2012 | Actual return on assets still held at December 31, 2012 | Actual return on assets sold during the year ended December 31, 2012 | Purchases, sales, and settlements | Net transfers into (out of) Level 3 | Balance at December 31, 2012 | ||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||
Corporate and other bonds | $ | 10 | $ | 1 | $ | — | $ | — | $ | — | $ | 11 | ||||||||||||
Equity securities | 5 | — | — | — | — | 5 | ||||||||||||||||||
Limited partnerships: | ||||||||||||||||||||||||
Hedge funds | 330 | 41 | 3 | (15 | ) | — | 359 | |||||||||||||||||
Private equity | 65 | 8 | — | (11 | ) | — | 62 | |||||||||||||||||
Total limited partnerships | 395 | 49 | 3 | (26 | ) | — | 421 | |||||||||||||||||
Investment contracts with insurance company | 10 | — | — | — | — | 10 | ||||||||||||||||||
Total | $ | 420 | $ | 50 | $ | 3 | $ | (26 | ) | $ | — | $ | 447 | |||||||||||
The table below presents the estimated future minimum benefit payments to participants at December 31, 2013. | ||||||||||||||||||||||||
Estimated Future Minimum Benefit Payments to Participants | ||||||||||||||||||||||||
(In millions) | Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||
2014 | $ | 189 | $ | 5 | ||||||||||||||||||||
2015 | 191 | 4 | ||||||||||||||||||||||
2016 | 194 | 5 | ||||||||||||||||||||||
2017 | 199 | 4 | ||||||||||||||||||||||
2018 | 203 | 4 | ||||||||||||||||||||||
2019-2023 | 1,013 | 14 | ||||||||||||||||||||||
In 2014, CNA expects to contribute $56 million to its pension plans and $5 million to its postretirement health care benefit plans. | ||||||||||||||||||||||||
Savings Plans | ||||||||||||||||||||||||
CNA sponsors savings plans, which are generally contributory plans that allow most employees to contribute a maximum of 20% of their eligible compensation, subject to certain limitations prescribed by the IRS. The Company contributes matching amounts to participants, amounting to 70% of the first 6% (35% of the first 6% in the first year of employment) of eligible compensation contributed by the employee. Employees vest in these contributions ratably over five years. | ||||||||||||||||||||||||
The CNA Savings and Capital Accumulation Plan allows employees to make contributions to an investment fund that is supported in part by an investment contract purchased from CAC. CAC will not accept any further deposits under this contract. The liability to the CNA Savings and Capital Accumulation Plan is included in Separate account liabilities on the Consolidated Balance Sheets, and was $129 million and $256 million at December 31, 2013 and 2012. | ||||||||||||||||||||||||
As noted above, during 2000, CCC employees were required to make a choice regarding their continued participation in CNA's defined benefit pension plan. Employees who elected to forgo earning additional benefits in the defined benefit pension plan and all employees hired by CCC on or after January 1, 2000 receive a Company contribution of 3% or 5% of their eligible compensation, depending on their age. In addition, these employees are eligible to receive additional discretionary contributions of up to 2% of eligible compensation and an additional Company match of up to 80% of the first 6% of eligible compensation contributed by the employee. These additional contributions are made at the discretion of management and are contributed to participant accounts in the first quarter of the year following management's determination of the discretionary amounts. Employees vest in these contributions ratably over five years. | ||||||||||||||||||||||||
Benefit expense for the Company's savings plans was $71 million, $70 million and $60 million for the years ended December 31, 2013, 2012 and 2011. | ||||||||||||||||||||||||
Stock-Based Compensation | ||||||||||||||||||||||||
The CNAF Incentive Compensation Plan (the Plan), as amended and restated on January 1, 2010, authorizes the grant of stock-based compensation to certain management personnel for up to 6 million shares of CNAF's common stock. The Plan currently provides for awards of stock options, stock appreciation rights (SARs), restricted shares, performance-based restricted share units (RSUs) and performance share units. The number of shares available for the granting of stock-based compensation under the Plan as of December 31, 2013 was approximately 1.5 million. | ||||||||||||||||||||||||
The Company recorded stock-based compensation expense related to the Plan of $10 million, $9 million and $6 million for the years ended December 31, 2013, 2012 and 2011. The related income tax benefit recognized was $3 million, $3 million and $2 million. The compensation cost related to nonvested awards not yet recognized was $14 million, and the weighted average period over which it is expected to be recognized is 1.7 years at December 31, 2013. | ||||||||||||||||||||||||
Equity based compensation that is not fully vested prior to termination is generally forfeited upon termination, except as otherwise provided by contractual obligations. In addition, any such compensation that vested prior to termination is generally canceled immediately, except in cases of retirement, death or disability, and as otherwise provided by contractual obligations. | ||||||||||||||||||||||||
Stock Options and SARs | ||||||||||||||||||||||||
The exercise price of all stock options and SARs granted is based on the market value of the Company's common stock as of the date of grant. Stock options and SARs generally vest ratably over a four-year service period following date of grant and have a maximum term of ten years. | ||||||||||||||||||||||||
The fair value of granted stock options and SARs was estimated at the grant date using the Black-Scholes option-pricing model. The Black-Scholes model incorporates a risk free rate of return and various assumptions regarding the underlying common stock and the expected life of the securities granted. Different interest rates and assumptions were used for each grant, as appropriate based on date of grant. | ||||||||||||||||||||||||
There were no stock options or SARs granted for the year ended December 31, 2013. The following table presents the significant assumptions used to estimate the fair value of granted stock options and SARs for the years ended December 31, 2012 and 2011. | ||||||||||||||||||||||||
Years ended December 31 | 2012 | 2011 | ||||||||||||||||||||||
Weighted average expected life of the securities granted (in years) | 5.68 | 5.61 | ||||||||||||||||||||||
Estimate of the underlying common stock's volatility | 40.39 | % | 39.88 | % | ||||||||||||||||||||
Expected dividend yield | 2.1 | % | 1.5 | % | ||||||||||||||||||||
Risk free interest rate | 1 | % | 2.2 | % | ||||||||||||||||||||
The following table presents activity for stock options and SARs under the Plan in 2013. | ||||||||||||||||||||||||
Number of Awards | Weighted-Average Exercise Price per Award | Aggregate Intrinsic Value | Weighted-Average Remaining Contractual Term (in years) | |||||||||||||||||||||
Outstanding at January 1, 2013 | 1,158,700 | $ | 25.93 | |||||||||||||||||||||
Awards granted | — | — | ||||||||||||||||||||||
Awards exercised | (117,950 | ) | 21.19 | |||||||||||||||||||||
Awards forfeited, canceled or expired | (4,100 | ) | 30.66 | |||||||||||||||||||||
Outstanding at December 31, 2013 | 1,036,650 | $ | 26.45 | $ | 17 | million | 4.16 | |||||||||||||||||
Outstanding, fully vested and expected to vest | 1,032,849 | $ | 26.45 | $ | 17 | million | 4.15 | |||||||||||||||||
Outstanding, exercisable | 936,650 | $ | 26.42 | $ | 15 | million | 3.87 | |||||||||||||||||
The following table presents weighted-average grant date fair value for awards granted, total intrinsic value for awards exercised and total fair value for awards vested for the years ended December 31, 2013, 2012 and 2011. | ||||||||||||||||||||||||
Years ended December 31 | 2013 | 2012 | 2011 | |||||||||||||||||||||
Weighted-average grant date fair value | $ | 8.81 | $ | 9.38 | ||||||||||||||||||||
Total intrinsic value of awards exercised | $ | 1,495 | thousand | $ | 548 | thousand | $ | 481 | thousand | |||||||||||||||
Fair value of awards vested | $ | 1 | million | $ | 1 | million | $ | 2 | million | |||||||||||||||
Share Awards | ||||||||||||||||||||||||
The fair value of share awards is based on the market value of the Company's common stock as of the date of grant. Share awards currently granted under the Plan include restricted shares, performance-based RSUs, and performance share units. Generally, restricted shares vest ratably over a four-year service period following the date of grant. Performance-based RSUs generally become payable within a range of 0% to 100% of the number of shares initially granted based upon the attainment of specific annual performance goals and vest ratably over a four-year service period following the date of grant. Performance share units become payable within a range of 0% to 200% of the number of shares initially granted based upon the attainment of specific performance goals achieved over a three year period. | ||||||||||||||||||||||||
The following table presents activity for restricted shares, performance-based RSUs and performance share units under the Plan in 2013. | ||||||||||||||||||||||||
Number of Awards | Weighted-Average Grant Date Fair Value | |||||||||||||||||||||||
Balance at January 1, 2013 | 882,321 | $ | 26.15 | |||||||||||||||||||||
Awards granted | 351,364 | 31.8 | ||||||||||||||||||||||
Awards vested | (417,955 | ) | 24.04 | |||||||||||||||||||||
Awards forfeited, canceled or expired | (13,770 | ) | 28.72 | |||||||||||||||||||||
Performance-based adjustment | 45,714 | 28.39 | ||||||||||||||||||||||
Balance at December 31, 2013 | 847,674 | $ | 29.61 | |||||||||||||||||||||
Other_Intangible_Assets
Other Intangible Assets | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Intangible Assets, Gross (Excluding Goodwill) [Abstract] | ' | |||||||||||||||||
Other Intangible Assets | ' | |||||||||||||||||
Note K. Other Intangible Assets | ||||||||||||||||||
Other intangible assets are presented in the following table. | ||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||
(In millions) | Economic Useful Life | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | |||||||||||||
Finite-lived intangible assets: | ||||||||||||||||||
Value of business acquired | 1 - 4 years | $ | 64 | $ | 63 | $ | 62 | $ | 43 | |||||||||
Trade name | 8 years | 8 | 2 | 8 | — | |||||||||||||
Distribution channel | 15 years | 13 | 1 | 13 | — | |||||||||||||
Total finite-lived intangible assets | 85 | 66 | 83 | 43 | ||||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||||||
Syndicate capacity | 58 | 57 | ||||||||||||||||
Agency force | 16 | 16 | ||||||||||||||||
Total indefinite-lived intangible assets | 74 | 73 | ||||||||||||||||
Total other intangible assets | $ | 159 | $ | 66 | $ | 156 | $ | 43 | ||||||||||
For the years ended December 31, 2013 and 2012, amortization expense of $15 million and $33 million was included in Amortization of deferred acquisition costs and $5 million and $10 million was included in Other operating expenses in the Statement of Operations for the Hardy segment. The gross carrying amounts and accumulated amortization in the table above may change from period to period as a result of foreign currency translation. Estimated future amortization expense for intangible assets is $4 million in 2014, $1 million in 2015 and $2 million in years 2016, 2017 and 2018. |
Operating_Leases_Commitments_a
Operating Leases, Commitments and Contingencies, and Guarantees | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Operating Leases, Commitments and Contingencies, and Guarantees [Abstract] | ' | |||||||
Operating Leases, Commitments and Contingencies, and Guarantees | ' | |||||||
Note L. Operating Leases, Commitments and Contingencies, and Guarantees | ||||||||
Operating Leases | ||||||||
The Company occupies office facilities under lease agreements that expire at various dates. In addition, data processing, office and transportation equipment is leased under agreements that expire at various dates. Most leases contain renewal options that provide for rent increases based on prevailing market conditions. Lease expenses for the years ended December 31, 2013, 2012 and 2011 were $46 million, $52 million and $50 million. Sublease revenues for the years ended December 31, 2013, 2012 and 2011 were $3 million, $2 million and $2 million. | ||||||||
The table below presents the future minimum lease payments to be made under non-cancelable operating leases along with future minimum sublease receipts to be received on owned and leased properties at December 31, 2013. | ||||||||
Future Minimum Lease Payments and Sublease Receipts | ||||||||
(In millions) | Future Minimum Lease Payments | Future Minimum Sublease Receipts | ||||||
2014 | $ | 37 | $ | 2 | ||||
2015 | 32 | — | ||||||
2016 | 29 | — | ||||||
2017 | 23 | — | ||||||
2018 | 17 | — | ||||||
Thereafter | 70 | — | ||||||
Total | $ | 208 | $ | 2 | ||||
Commitments and Contingencies | ||||||||
The Company holds an investment in a real estate joint venture. In the normal course of business, the Company, on a joint and several basis with other unrelated insurance company shareholders, has committed to continue funding the operating deficits of this joint venture. Additionally, the Company and the other unrelated shareholders, on a joint and several basis, have guaranteed an operating lease for an office building, which expires in 2016. The guarantee of the operating lease is a parallel guarantee to the commitment to fund operating deficits; consequently, the separate guarantee to the lessor is not expected to be triggered as long as the joint venture continues to be funded by its shareholders which provide liquidity to make its annual lease payments. | ||||||||
In the event that the other parties to the joint venture are unable to meet their commitments in funding the operations of this joint venture, the Company would be required to assume the obligation for the entire office building operating lease. The Company does not believe it is likely that it will be required to do so. However, the maximum potential future lease payments and other related costs at December 31, 2013 that the Company could be required to pay under this guarantee, in excess of amounts already recorded, were approximately $84 million. If the Company were required to assume the entire lease obligation, the Company would have the right to pursue reimbursement from the other shareholders and the right to all sublease revenues. | ||||||||
Guarantees | ||||||||
In the course of selling business entities and assets to third parties, the Company has agreed to indemnify purchasers for losses arising out of breaches of representation and warranties with respect to the business entities or assets being sold, including, in certain cases, losses arising from undisclosed liabilities or certain named litigation. Such indemnification agreements may include provisions that survive indefinitely. As of December 31, 2013, the aggregate amount of quantifiable indemnification agreements in effect for sales of business entities, assets and third-party loans was $702 million. | ||||||||
In addition, the Company has agreed to provide indemnification to third-party purchasers for certain losses associated with sold business entities or assets that are not limited by a contractual monetary amount. As of December 31, 2013, the Company had outstanding unlimited indemnifications in connection with the sales of certain of its business entities or assets that included tax liabilities arising prior to a purchaser's ownership of an entity or asset, defects in title at the time of sale, employee claims arising prior to closing and in some cases losses arising from certain litigation and undisclosed liabilities. These indemnification agreements survive until the applicable statutes of limitation expire or until the agreed upon contract terms expire. | ||||||||
As of December 31, 2013 and 2012, the Company had recorded liabilities of approximately $7 million related to indemnification agreements and management believes that it is not likely that any future indemnity claims will be significantly greater than the amounts recorded. |
Stockholders_Equity_and_Statut
Stockholders' Equity and Statutory Accounting Practices | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Stockholders' Equity and Statutory Accounting Practices [Abstract] | ' | |||||||||||||||||||
Stockholders' Equity And Statutory Accounting Practices | ' | |||||||||||||||||||
Note M. Stockholders’ Equity and Statutory Accounting Practices | ||||||||||||||||||||
Common Stock Dividends | ||||||||||||||||||||
There are no restrictions on the retained earnings or net income of CNAF with regard to payment of dividends to its stockholders. However, given the holding company nature of CNAF, its ability to pay a dividend is significantly dependent on the receipt of dividends from its subsidiaries, particularly CCC, which directly or indirectly owns all significant subsidiaries. See the Statutory Accounting Practices section below for a discussion of the regulatory restrictions on CCC's availability to pay dividends. | ||||||||||||||||||||
CNAF's ability to pay dividends is indirectly limited by the minimum consolidated net worth covenant in the Company's line of credit agreement. See Note I for further discussion of the Company's debt obligations. | ||||||||||||||||||||
Statutory Accounting Practices | ||||||||||||||||||||
CNAF’s insurance subsidiaries are domiciled in various jurisdictions. These subsidiaries prepare statutory financial statements in accordance with accounting practices prescribed or permitted by the respective jurisdictions’ insurance regulators. Domestic prescribed statutory accounting practices are set forth in a variety of publications of the National Association of Insurance Commissioners (NAIC) as well as state laws, regulations and general administrative rules. These statutory accounting principles vary in certain respects from GAAP. In converting from statutory accounting principles to GAAP, the more significant adjustments include deferral of policy acquisition costs and the inclusion of net unrealized holding gains or losses in stockholders’ equity relating to certain fixed maturity securities. | ||||||||||||||||||||
The payment of dividends by CNAF's insurance subsidiaries without prior approval of the insurance department of each subsidiary’s domiciliary jurisdiction is generally limited by formula. Dividends in excess of these amounts are subject to prior approval by the respective insurance regulator. | ||||||||||||||||||||
Dividends from CCC are subject to the insurance holding company laws of the State of Illinois, the domiciliary state of CCC. Under these laws, ordinary dividends, or dividends that do not require prior approval by the Department, may be paid only from earned surplus, which is calculated by removing unrealized gains from unassigned surplus. As of December 31, 2013, CCC is in a positive earned surplus position, enabling CCC to pay approximately $715 million of dividend payments during 2014 that would not be subject to the Department’s prior approval. The actual level of dividends paid in any year is determined after an assessment of available dividend capacity, holding company liquidity and cash needs as well as the impact the dividends will have on the statutory surplus of the applicable insurance company. | ||||||||||||||||||||
Combined statutory capital and surplus and net income (loss), determined in accordance with accounting practices prescribed or permitted by insurance and/or other regulatory authorities for the Combined Continental Casualty Companies and the life company, were as follows. | ||||||||||||||||||||
Statutory Information | ||||||||||||||||||||
Statutory Capital and Surplus | Statutory Net Income (Loss) | |||||||||||||||||||
31-Dec | Years ended December 31 | |||||||||||||||||||
(In millions) | 2013 (b) | 2012 | 2013 (b) | 2012 | 2011 | |||||||||||||||
Combined Continental Casualty Companies (a) | $ | 11,137 | $ | 9,998 | $ | 913 | $ | 391 | $ | 954 | ||||||||||
Life company | 597 | 556 | 48 | 44 | 29 | |||||||||||||||
________________ | ||||||||||||||||||||
(a) | Represents the combined statutory surplus of CCC and its subsidiaries, including the life company. | |||||||||||||||||||
(b) | Information derived from the statutory-basis financial statements to be filed with insurance regulators. | |||||||||||||||||||
CNAF’s domestic insurance subsidiaries are subject to risk-based capital (RBC) requirements. RBC is a method developed by the NAIC to determine the minimum amount of statutory capital appropriate for an insurance company to support its overall business operations in consideration of its size and risk profile. The formula for determining the amount of RBC specifies various factors, weighted based on the perceived degree of risk, which are applied to certain financial balances and financial activity. The adequacy of a company's actual capital is evaluated by a comparison to the RBC results, as determined by the formula. Companies below minimum RBC requirements are classified within certain levels, each of which requires specified corrective action. | ||||||||||||||||||||
The statutory capital and surplus presented above for CCC was approximately 265% and 240% of company action level RBC at December 31, 2013 and 2012. Company action level RBC is the level of RBC which triggers a heightened level of regulatory supervision. The statutory capital and surplus of the Company's foreign insurance subsidiaries, which is not significant to the overall statutory capital and surplus, also met or exceeded their respective regulatory and other capital requirements. | ||||||||||||||||||||
The Hardy insurance entities are not owned by CCC, therefore their regulatory capital is not included in the Statutory Capital and Surplus of the Combined Continental Casualty Companies presented in the table above. At December 31, 2013, Hardy's portion of Syndicate 382's capital requirement included $148 million of capital provided by CCC which is included in Combined Continental Casualty Companies' Statutory Capital and Surplus above. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) by Component | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) by Component | ' | |||||||||||||||||||
Note N. Accumulated Other Comprehensive Income (Loss) by Component | ||||||||||||||||||||
The table below displays the changes in Accumulated other comprehensive income (loss) by component for the year ended December 31, 2013. | ||||||||||||||||||||
Net unrealized gains (losses) on investments with OTTI losses | Net unrealized gains (losses) on other investments | Pension and postretirement benefits | Cumulative foreign currency translation adjustment | Total | ||||||||||||||||
Balance at December 31, 2012 | $ | 20 | $ | 1,371 | $ | (721 | ) | $ | 161 | $ | 831 | |||||||||
Other comprehensive income (loss) before reclassifications | 6 | (658 | ) | 275 | (11 | ) | (388 | ) | ||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) after tax of $0, $(10), $11, $0, and $1 | — | 21 | (20 | ) | — | 1 | ||||||||||||||
Other comprehensive income (loss) after tax of $(3), $364, $(158), $0, and $203 | 6 | (679 | ) | 295 | (11 | ) | (389 | ) | ||||||||||||
Balance at December 31, 2013 | $ | 26 | $ | 692 | $ | (426 | ) | $ | 150 | $ | 442 | |||||||||
The following table displays the components of AOCI included on the Consolidated Balance Sheet for the year ended December 31, 2012. | ||||||||||||||||||||
31-Dec | 2012 | |||||||||||||||||||
(In millions) | Tax | After-tax | ||||||||||||||||||
Cumulative foreign currency translation adjustment | $ | — | $ | 161 | ||||||||||||||||
Pension and postretirement benefits | 387 | (721 | ) | |||||||||||||||||
Net unrealized gains (losses) on investments with OTTI losses | (11 | ) | 20 | |||||||||||||||||
Net unrealized gains (losses) on other investments | (721 | ) | 1,371 | |||||||||||||||||
Accumulated other comprehensive income (loss) | $ | (345 | ) | $ | 831 | |||||||||||||||
The amount of pretax net unrealized gains (losses) on available-for-sale securities with OTTI losses reclassified out of AOCI into earnings was $(28) million and $(83) million for the years ended December 31, 2012 and 2011, with related tax benefit of $10 million and $29 million. The amount of pretax net unrealized gains (losses) on other available-for-sale securities reclassified out of AOCI into earnings was $89 million and $60 million for the years ended December 31, 2012 and 2011, with related tax (expense) benefit of $(31) million and $(21) million. | ||||||||||||||||||||
Amounts reclassified from Accumulated other comprehensive income (loss) shown above are reported in Net income (loss) as follows: | ||||||||||||||||||||
Component of AOCI | Consolidated Statements of Operations Line Item Affected by Reclassifications | |||||||||||||||||||
Net unrealized gains (losses) on investments with OTTI losses | Net realized investment gains (losses) | |||||||||||||||||||
Net unrealized gains (losses) on other investments | Net realized investment gains (losses) | |||||||||||||||||||
Pension and postretirement benefits | Other operating expenses |
Business_Segments
Business Segments | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||||||
Business Segments | ' | |||||||||||||||||||||||||||
Note O. Business Segments | ||||||||||||||||||||||||||||
The Company's core property and casualty commercial insurance operations are reported in three business segments: CNA Specialty, CNA Commercial and Hardy. CNA Specialty provides a broad array of professional, financial and specialty property and casualty products and services, primarily through insurance brokers and managing general underwriters. CNA Commercial includes property and casualty coverages sold to small businesses and middle market entities and organizations primarily through an independent agency distribution system. CNA Commercial also includes commercial insurance and risk management products sold to large corporations primarily through insurance brokers. Hardy, a specialized Lloyd's underwriter, underwrites primarily short-tail exposures in marine and aviation, non-marine property, specialty lines and property treaty reinsurance. | ||||||||||||||||||||||||||||
The Company's non-core operations are managed in two segments: Life & Group Non-Core and Corporate & Other Non-Core. Life & Group Non-Core primarily includes the results of the life and group lines of business that are in run-off. Corporate & Other Non-Core primarily includes certain corporate expenses, including interest on corporate debt, and the results of certain property and casualty business in run-off, including CNA Re and A&EP. | ||||||||||||||||||||||||||||
The accounting policies of the segments are the same as those described in Note A. The Company manages most of its assets on a legal entity basis, while segment operations are generally conducted across legal entities. As such, only insurance and reinsurance receivables, insurance reserves, deferred acquisition costs and goodwill are readily identifiable for all individual segments. Distinct investment portfolios are not maintained for every individual segment; accordingly, allocation of assets to each segment is not performed. Therefore, a significant portion of net investment income and realized investment gains or losses are allocated primarily based on each segment's net carried insurance reserves, as adjusted. All significant intersegment income and expense has been eliminated. Income taxes have been allocated on the basis of the taxable income of the segments. | ||||||||||||||||||||||||||||
Approximately 8.9%, 9.2% and 8.8% of the Company's direct written premiums were derived from outside the United States for the years ended December 31, 2013, 2012 and 2011. | ||||||||||||||||||||||||||||
In the following tables, certain financial measures are presented to provide information used by management to monitor the Company's operating performance. Management utilizes these financial measures to monitor the Company's insurance operations and investment portfolio. Net operating income, which is derived from certain income statement amounts, is used by management to monitor performance of the Company's insurance operations. The Company's investment portfolio is monitored by management through analysis of various factors including unrealized gains and losses on securities, portfolio duration and exposure to market and credit risk. Based on such analyses, the Company may recognize an OTTI loss on an investment security in accordance with its policy, or sell a security, which may produce realized gains and losses. | ||||||||||||||||||||||||||||
Net operating income (loss) is calculated by excluding from net income (loss) attributable to CNA the after-tax effects of 1) net realized investment gains or losses, 2) income or loss from discontinued operations and 3) any cumulative effects of changes in accounting guidance. The calculation of net operating income excludes net realized investment gains or losses because net realized investment gains or losses are largely discretionary, except for some losses related to OTTI, and are generally driven by economic factors that are not necessarily consistent with key drivers of underwriting performance, and are therefore not considered an indication of trends in insurance operations. | ||||||||||||||||||||||||||||
The Company's results of operations and selected balance sheet items by segment are presented in the following tables. | ||||||||||||||||||||||||||||
Year ended December 31, 2013 | CNA | CNA | Hardy | Life & | Corporate | |||||||||||||||||||||||
Specialty | Commercial | Group | & Other | |||||||||||||||||||||||||
(In millions) | Non-Core | Non-Core | Eliminations | Total | ||||||||||||||||||||||||
Net written premiums (a) | $ | 3,091 | $ | 3,312 | $ | 396 | $ | 552 | $ | (1 | ) | $ | (2 | ) | $ | 7,348 | ||||||||||||
Operating revenues | ||||||||||||||||||||||||||||
Net earned premiums | $ | 3,004 | $ | 3,350 | $ | 361 | $ | 559 | $ | (1 | ) | $ | (2 | ) | $ | 7,271 | ||||||||||||
Net investment income | 657 | 927 | 4 | 830 | 32 | — | 2,450 | |||||||||||||||||||||
Other revenues | 257 | 96 | — | (2 | ) | 12 | (2 | ) | 361 | |||||||||||||||||||
Total operating revenues | 3,918 | 4,373 | 365 | 1,387 | 43 | (4 | ) | 10,082 | ||||||||||||||||||||
Claims, Benefits and Expenses | ||||||||||||||||||||||||||||
Net incurred claims and benefits | 1,704 | 2,475 | 162 | 1,395 | 191 | — | 5,927 | |||||||||||||||||||||
Policyholders’ dividends | 6 | 7 | — | 7 | — | — | 20 | |||||||||||||||||||||
Amortization of deferred acquisition costs | 628 | 600 | 106 | 28 | — | — | 1,362 | |||||||||||||||||||||
Other insurance related expenses | 272 | 547 | 69 | 134 | (3 | ) | (2 | ) | 1,017 | |||||||||||||||||||
Other expenses | 236 | 26 | 19 | 12 | 183 | (2 | ) | 474 | ||||||||||||||||||||
Total claims, benefits and expenses | 2,846 | 3,655 | 356 | 1,576 | 371 | (4 | ) | 8,800 | ||||||||||||||||||||
Operating income (loss) from continuing operations before income tax | 1,072 | 718 | 9 | (189 | ) | (328 | ) | — | 1,282 | |||||||||||||||||||
Income tax (expense) benefit on operating income (loss) | (365 | ) | (250 | ) | 1 | 131 | 118 | — | (365 | ) | ||||||||||||||||||
Net operating income (loss) from continuing operations attributable to CNA | 707 | 468 | 10 | (58 | ) | (210 | ) | — | 917 | |||||||||||||||||||
Net realized investment gains (losses), pretax | (3 | ) | (13 | ) | 1 | 37 | 9 | — | 31 | |||||||||||||||||||
Income tax (expense) benefit on net realized investment gains (losses) | 1 | 4 | — | (13 | ) | (3 | ) | — | (11 | ) | ||||||||||||||||||
Net realized investment gains (losses) | (2 | ) | (9 | ) | 1 | 24 | 6 | — | 20 | |||||||||||||||||||
Net income (loss) from continuing operations attributable to CNA | $ | 705 | $ | 459 | $ | 11 | $ | (34 | ) | $ | (204 | ) | $ | — | $ | 937 | ||||||||||||
____________________ | ||||||||||||||||||||||||||||
(a) | Related to business in property and casualty companies only. | |||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Reinsurance receivables | $ | 546 | $ | 1,075 | $ | 197 | $ | 1,203 | $ | 3,067 | $ | — | $ | 6,088 | ||||||||||||||
Insurance receivables | $ | 775 | $ | 1,099 | $ | 176 | $ | 11 | $ | 2 | $ | — | $ | 2,063 | ||||||||||||||
Deferred acquisition costs | $ | 318 | $ | 257 | $ | 49 | $ | — | $ | — | $ | — | $ | 624 | ||||||||||||||
Goodwill | $ | 117 | $ | — | $ | 38 | $ | — | $ | — | $ | — | $ | 155 | ||||||||||||||
Insurance reserves | ||||||||||||||||||||||||||||
Claim and claim adjustment expenses | $ | 6,689 | $ | 10,649 | $ | 386 | $ | 3,058 | $ | 3,307 | $ | — | $ | 24,089 | ||||||||||||||
Unearned premiums | 1,805 | 1,536 | 249 | 128 | — | — | 3,718 | |||||||||||||||||||||
Future policy benefits | — | — | — | 10,471 | — | — | 10,471 | |||||||||||||||||||||
Policyholders’ funds | 9 | 15 | — | 92 | — | — | 116 | |||||||||||||||||||||
Year ended December 31, 2012 | CNA | CNA | Hardy(b) | Life & | Corporate | |||||||||||||||||||||||
Specialty | Commercial | Group | & Other | |||||||||||||||||||||||||
(In millions) | Non-Core | Non-Core | Eliminations | Total | ||||||||||||||||||||||||
Net written premiums (a) | $ | 2,924 | $ | 3,373 | $ | 117 | $ | 553 | $ | (1 | ) | $ | (2 | ) | $ | 6,964 | ||||||||||||
Operating revenues | ||||||||||||||||||||||||||||
Net earned premiums | $ | 2,898 | $ | 3,306 | $ | 120 | $ | 560 | $ | — | $ | (2 | ) | $ | 6,882 | |||||||||||||
Net investment income | 592 | 854 | 3 | 801 | 32 | — | 2,282 | |||||||||||||||||||||
Other revenues | 230 | 40 | 1 | 34 | 16 | (1 | ) | 320 | ||||||||||||||||||||
Total operating revenues | 3,720 | 4,200 | 124 | 1,395 | 48 | (3 | ) | 9,484 | ||||||||||||||||||||
Claims, Benefits and Expenses | ||||||||||||||||||||||||||||
Net incurred claims and benefits | 1,831 | 2,574 | 72 | 1,406 | (16 | ) | — | 5,867 | ||||||||||||||||||||
Policyholders’ dividends | 2 | 11 | — | 16 | — | — | 29 | |||||||||||||||||||||
Amortization of deferred acquisition costs | 614 | 588 | 44 | 28 | — | — | 1,274 | |||||||||||||||||||||
Other insurance related expenses | 301 | 578 | 25 | 144 | 3 | (2 | ) | 1,049 | ||||||||||||||||||||
Other expenses | 206 | 36 | 9 | 23 | 183 | (1 | ) | 456 | ||||||||||||||||||||
Total claims, benefits and expenses | 2,954 | 3,787 | 150 | 1,617 | 170 | (3 | ) | 8,675 | ||||||||||||||||||||
Operating income (loss) from continuing operations before income tax | 766 | 413 | (26 | ) | (222 | ) | (122 | ) | — | 809 | ||||||||||||||||||
Income tax (expense) benefit on operating income (loss) | (262 | ) | (136 | ) | 3 | 132 | 41 | — | (222 | ) | ||||||||||||||||||
Net operating income (loss) from continuing operations attributable to CNA | 504 | 277 | (23 | ) | (90 | ) | (81 | ) | — | 587 | ||||||||||||||||||
Net realized investment gains (losses), pretax | 22 | 38 | (1 | ) | — | 4 | — | 63 | ||||||||||||||||||||
Income tax (expense) benefit on net realized investment gains (losses) | (9 | ) | (11 | ) | — | — | (2 | ) | — | (22 | ) | |||||||||||||||||
Net realized investment gains (losses) | 13 | 27 | (1 | ) | — | 2 | — | 41 | ||||||||||||||||||||
Net income (loss) from continuing operations attributable to CNA | $ | 517 | $ | 304 | $ | (24 | ) | $ | (90 | ) | $ | (79 | ) | $ | — | $ | 628 | |||||||||||
____________________ | ||||||||||||||||||||||||||||
(a) | Related to business in property and casualty companies only. | |||||||||||||||||||||||||||
(b) | Included from date of acquisition. | |||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Reinsurance receivables | $ | 665 | $ | 1,155 | $ | 294 | $ | 1,273 | $ | 2,844 | $ | — | $ | 6,231 | ||||||||||||||
Insurance receivables | $ | 673 | $ | 1,116 | $ | 181 | $ | 9 | $ | 4 | $ | — | $ | 1,983 | ||||||||||||||
Deferred acquisition costs | $ | 300 | $ | 269 | $ | 29 | $ | — | $ | — | $ | — | $ | 598 | ||||||||||||||
Goodwill | $ | 117 | $ | — | $ | 37 | $ | — | $ | — | $ | — | $ | 154 | ||||||||||||||
Insurance reserves | ||||||||||||||||||||||||||||
Claim and claim adjustment expenses | $ | 6,748 | $ | 11,326 | $ | 521 | $ | 3,006 | $ | 3,162 | $ | — | $ | 24,763 | ||||||||||||||
Unearned premiums | 1,685 | 1,569 | 222 | 134 | — | — | 3,610 | |||||||||||||||||||||
Future policy benefits | — | — | — | 11,475 | — | — | 11,475 | |||||||||||||||||||||
Policyholders’ funds | 8 | 15 | — | 134 | — | — | 157 | |||||||||||||||||||||
Year ended December 31, 2011 | CNA | CNA | Life & | Corporate | ||||||||||||||||||||||||
Specialty | Commercial | Group | & Other | |||||||||||||||||||||||||
(In millions) | Non-Core | Non-Core | Eliminations | Total | ||||||||||||||||||||||||
Net written premiums (a) | $ | 2,872 | $ | 3,350 | $ | 577 | $ | 2 | $ | (3 | ) | $ | 6,798 | |||||||||||||||
Operating revenues | ||||||||||||||||||||||||||||
Net earned premiums | $ | 2,796 | $ | 3,240 | $ | 569 | $ | 1 | $ | (3 | ) | $ | 6,603 | |||||||||||||||
Net investment income | 500 | 763 | 759 | 32 | — | 2,054 | ||||||||||||||||||||||
Other revenues | 221 | 54 | 13 | 6 | — | 294 | ||||||||||||||||||||||
Total operating revenues | 3,517 | 4,057 | 1,341 | 39 | (3 | ) | 8,951 | |||||||||||||||||||||
Claims, Benefits and Expenses | ||||||||||||||||||||||||||||
Net incurred claims and benefits | 1,657 | 2,296 | 1,526 | (3 | ) | — | 5,476 | |||||||||||||||||||||
Policyholders’ dividends | (3 | ) | 8 | 8 | — | — | 13 | |||||||||||||||||||||
Amortization of deferred acquisition costs | 568 | 585 | 23 | — | — | 1,176 | ||||||||||||||||||||||
Other insurance related expenses | 294 | 540 | 143 | 6 | (3 | ) | 980 | |||||||||||||||||||||
Other expenses | 191 | 53 | 19 | 170 | — | 433 | ||||||||||||||||||||||
Total claims, benefits and expenses | 2,707 | 3,482 | 1,719 | 173 | (3 | ) | 8,078 | |||||||||||||||||||||
Operating income (loss) from continuing operations before income tax | 810 | 575 | (378 | ) | (134 | ) | — | 873 | ||||||||||||||||||||
Income tax (expense) benefit on operating income (loss) | (281 | ) | (204 | ) | 170 | 68 | — | (247 | ) | |||||||||||||||||||
Net operating (income) loss, after-tax, attributable to noncontrolling interests | (12 | ) | (4 | ) | — | — | — | (16 | ) | |||||||||||||||||||
Net operating income (loss) from continuing operations attributable to CNA | 517 | 367 | (208 | ) | (66 | ) | — | 610 | ||||||||||||||||||||
Net realized investment gains (losses), pretax | (5 | ) | 16 | (7 | ) | (6 | ) | — | (2 | ) | ||||||||||||||||||
Income tax (expense) benefit on net realized investment gains (losses) | 2 | (2 | ) | 2 | 3 | — | 5 | |||||||||||||||||||||
Net realized investment gains (losses) | (3 | ) | 14 | (5 | ) | (3 | ) | — | 3 | |||||||||||||||||||
Net income (loss) from continuing operations attributable to CNA | $ | 514 | $ | 381 | $ | (213 | ) | $ | (69 | ) | $ | — | $ | 613 | ||||||||||||||
____________________ | ||||||||||||||||||||||||||||
(a) | Related to business in property and casualty companies only. | |||||||||||||||||||||||||||
The following table provides revenue by line of business for each reportable segment. Revenues are comprised of operating revenues and net realized investment gains and losses. | ||||||||||||||||||||||||||||
Revenues by Line of Business | ||||||||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||||||||||||||||||
CNA Specialty | ||||||||||||||||||||||||||||
International | $ | 239 | $ | 220 | $ | 210 | ||||||||||||||||||||||
Management & Professional Liability | 2,836 | 2,723 | 2,541 | |||||||||||||||||||||||||
Surety | 490 | 485 | 472 | |||||||||||||||||||||||||
Warranty & Alternative Risks | 350 | 314 | 289 | |||||||||||||||||||||||||
CNA Specialty revenues | 3,915 | 3,742 | 3,512 | |||||||||||||||||||||||||
CNA Commercial | ||||||||||||||||||||||||||||
Commercial Insurance | 3,230 | 3,200 | 2,953 | |||||||||||||||||||||||||
International | 376 | 369 | 539 | |||||||||||||||||||||||||
Small Business | 754 | 669 | 581 | |||||||||||||||||||||||||
CNA Commercial revenues | 4,360 | 4,238 | 4,073 | |||||||||||||||||||||||||
Hardy revenues | 366 | 123 | ||||||||||||||||||||||||||
Life & Group Non-Core | ||||||||||||||||||||||||||||
Health | 1,192 | 1,120 | 1,093 | |||||||||||||||||||||||||
Life & Annuity | 232 | 239 | 229 | |||||||||||||||||||||||||
Other | — | 36 | 12 | |||||||||||||||||||||||||
Life & Group Non-Core revenues | 1,424 | 1,395 | 1,334 | |||||||||||||||||||||||||
Corporate & Other Non-Core revenues | 52 | 52 | 33 | |||||||||||||||||||||||||
Eliminations | (4 | ) | (3 | ) | (3 | ) | ||||||||||||||||||||||
Total revenues | $ | 10,113 | $ | 9,547 | $ | 8,949 | ||||||||||||||||||||||
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Quarterly Financial Data [Abstract] | ' | |||||||||||||||||||
Quarterly Financial Data (Unaudited) | ' | |||||||||||||||||||
Note P. Quarterly Financial Data (Unaudited) | ||||||||||||||||||||
The following tables set forth unaudited quarterly financial data for the years ended December 31, 2013 and 2012. | ||||||||||||||||||||
Quarterly Financial Data | ||||||||||||||||||||
2013 | ||||||||||||||||||||
(In millions, except per share data) | First | Second | Third | Fourth | Full Year | |||||||||||||||
Revenues | $ | 2,503 | $ | 2,493 | $ | 2,504 | $ | 2,613 | $ | 10,113 | ||||||||||
Net income (loss) attributable to CNA | $ | 250 | $ | 194 | $ | 272 | $ | 221 | $ | 937 | ||||||||||
Basic earnings (loss) per share attributable to CNA common stockholders | $ | 0.93 | $ | 0.72 | $ | 1.01 | $ | 0.82 | $ | 3.48 | ||||||||||
Diluted earnings (loss) per share attributable to CNA common stockholders (a) | $ | 0.93 | $ | 0.72 | $ | 1.01 | $ | 0.82 | $ | 3.47 | ||||||||||
2012 | ||||||||||||||||||||
(In millions, except per share data) | First | Second | Third | Fourth | Full Year | |||||||||||||||
Revenues | $ | 2,401 | $ | 2,246 | $ | 2,466 | $ | 2,434 | $ | 9,547 | ||||||||||
Net income (loss) attributable to CNA | $ | 250 | $ | 166 | $ | 221 | $ | (9 | ) | $ | 628 | |||||||||
Basic and diluted earnings (loss) per share attributable to CNA common stockholders (a) | $ | 0.93 | $ | 0.62 | $ | 0.82 | $ | (0.03 | ) | $ | 2.33 | |||||||||
____________________ | ||||||||||||||||||||
(a) | Due to the averaging of shares, quarterly earnings per share do not add to the total for the full year. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
Note Q. Related Party Transactions | |
The Company reimburses Loews, or pays directly, for management fees, travel and related expenses, software fees, and expenses of investment facilities and services provided to the Company. The amounts reimbursed or paid by the Company were $39 million for the years ended December 31, 2013 and 2012, and $38 million for the year ended December 31, 2011. The CNA Tax Group is included in the consolidated federal income tax return of Loews and its eligible subsidiaries. See Note E for a detailed description of the income tax agreement with Loews. In addition, the Company writes, at standard rates, a limited amount of insurance for Loews and its subsidiaries. The earned premiums for the years ended December 31, 2013, 2012 and 2011 were $2 million in each year. | |
CNA previously sponsored a stock ownership plan whereby the Company financed the purchase of Company common stock by certain former officers, including executive officers. Interest charged on the principal amount of these outstanding stock purchase loans is generally equivalent to the short term applicable federal rate, compounded semi-annually, in effect on the disbursement date of the loan. Loans made pursuant to the plan are generally full recourse and are secured by the stock purchased. The loans were originally issued with a ten-year maturity date, and the majority of the remaining loans have been extended with current terms maturing through May 2016. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
Note R. Subsequent Event | |
On February 10, 2014, the Company entered into a definitive agreement to sell the majority of its run-off annuity and pension deposit business, through the sale of the common stock of CAC, and a 100% coinsurance agreement on a separate small block of annuity business outside of CAC. | |
The business being sold is currently reported within the Life & Group Non-Core segment. As of December 31, 2013, gross insurance reserves for this business were approximately $3.4 billion. Results for this business were net income of approximately $31 million and $8 million for the years ended December 31, 2013 and 2012, and a net loss of approximately $124 million for the year ended December 31, 2011. | |
The sale is subject to regulatory approvals and other customary closing conditions and is expected to close in the first half of 2014. An impairment loss of approximately $220 million, after-tax, will be recorded in the first quarter of 2014. This business will be reported as discontinued operations in the first quarter of 2014. |
Schedule_I_Summary_of_Investme
Schedule I. Summary of Investments - Other Than Investments in Related Parties | 12 Months Ended |
Dec. 31, 2013 | |
Summary of Investments, Other than Investments in Related Parties [Abstract] | ' |
Schedule I. Summary of Investments - Other than Investments in Related Parties | ' |
SCHEDULE I. SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES | |
Incorporated herein by reference to Note B to the Consolidated Financial Statements included under Item 8. |
Schedule_II_Condensed_Financia
Schedule II. Condensed Financial Information of Registrant (Parent Company) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | |||||||||||
Schedule II. Condensed Financial Information of Registrant (Parent Company) | ' | |||||||||||
SCHEDULE II. CONDENSED FINANCIAL INFORMATION OF REGISTRANT (PARENT COMPANY) | ||||||||||||
CNA Financial Corporation | ||||||||||||
Statements of Operations and Comprehensive Income | ||||||||||||
Years ended December 31 | ||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||
Revenues | ||||||||||||
Net investment income | $ | 1 | $ | 1 | $ | 1 | ||||||
Net realized investment gains (losses) | 4 | 4 | (9 | ) | ||||||||
Other income | — | 9 | 40 | |||||||||
Total revenues | 5 | 14 | 32 | |||||||||
Expenses | ||||||||||||
Administrative and general | (7 | ) | 1 | 3 | ||||||||
Interest | 165 | 164 | 167 | |||||||||
Total expenses | 158 | 165 | 170 | |||||||||
Loss from operations before income taxes and equity in net income of subsidiaries | (153 | ) | (151 | ) | (138 | ) | ||||||
Income tax benefit | 22 | 144 | 46 | |||||||||
Loss before equity in net income of subsidiaries | (131 | ) | (7 | ) | (92 | ) | ||||||
Equity in net income of subsidiaries | 1,068 | 635 | 704 | |||||||||
Net income | 937 | 628 | 612 | |||||||||
Equity in other comprehensive income of subsidiaries | (389 | ) | 351 | 143 | ||||||||
Total Comprehensive Income | $ | 548 | $ | 979 | $ | 755 | ||||||
See accompanying Notes to Condensed Financial Information as well as the Consolidated Financial Statements and accompanying Notes. | ||||||||||||
CNA Financial Corporation | ||||||||||||
Balance Sheets | ||||||||||||
31-Dec | ||||||||||||
(In millions, except share data) | 2013 | 2012 | ||||||||||
Assets | ||||||||||||
Investment in subsidiaries | $ | 14,708 | $ | 14,427 | ||||||||
Cash | 1 | — | ||||||||||
Fixed maturity securities available-for-sale, at fair value (amortized cost of $1 and $2) | 1 | 2 | ||||||||||
Short term investments | 505 | 448 | ||||||||||
Amounts due from subsidiaries | 3 | 2 | ||||||||||
Other assets | 3 | 5 | ||||||||||
Total assets | $ | 15,221 | $ | 14,884 | ||||||||
Liabilities | ||||||||||||
Short term debt | $ | 549 | $ | 3 | ||||||||
Long term debt | 1,981 | 2,527 | ||||||||||
Other liabilities | 40 | 40 | ||||||||||
Total liabilities | 2,570 | 2,570 | ||||||||||
Stockholders' Equity | ||||||||||||
Common stock ($2.50 par value; 500,000,000 shares authorized; 273,040,243 shares issued; 269,717,583 and 269,399,390 shares outstanding) | 683 | 683 | ||||||||||
Additional paid-in capital | 2,145 | 2,146 | ||||||||||
Retained earnings | 9,495 | 8,774 | ||||||||||
Accumulated other comprehensive income | 442 | 831 | ||||||||||
Treasury stock (3,322,660 and 3,640,853 shares), at cost | (91 | ) | (99 | ) | ||||||||
Notes receivable for the issuance of common stock | (23 | ) | (21 | ) | ||||||||
Total stockholders' equity | 12,651 | 12,314 | ||||||||||
Total liabilities and stockholders' equity | $ | 15,221 | $ | 14,884 | ||||||||
See accompanying Notes to Condensed Financial Information as well as the Consolidated Financial Statements and accompanying Notes. | ||||||||||||
CNA Financial Corporation | ||||||||||||
Statements of Cash Flows | ||||||||||||
Years ended December 31 | ||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||
Cash Flows from Operating Activities | ||||||||||||
Net income | $ | 937 | $ | 628 | $ | 612 | ||||||
Adjustments to reconcile net income to net cash flows provided (used) by operating activities: | ||||||||||||
Equity in net income of subsidiaries | (1,068 | ) | (635 | ) | (704 | ) | ||||||
Dividends received from subsidiaries | 400 | 450 | — | |||||||||
Net realized investment (gains) losses | (4 | ) | (4 | ) | 9 | |||||||
Other, net | 8 | 19 | 55 | |||||||||
Total adjustments | (664 | ) | (170 | ) | (640 | ) | ||||||
Net cash flows provided (used) by operating activities | $ | 273 | $ | 458 | $ | (28 | ) | |||||
Cash Flows from Investing Activities | ||||||||||||
Proceeds from fixed maturity securities | $ | 1 | $ | 1 | $ | 1 | ||||||
Change in short term investments | (57 | ) | (156 | ) | (77 | ) | ||||||
Capital contributions to subsidiaries | (12 | ) | (399 | ) | (38 | ) | ||||||
Return of capital from subsidiaries | — | — | 6 | |||||||||
Repayment of surplus note by subsidiary | — | 250 | 250 | |||||||||
Other, net | 4 | 4 | 1 | |||||||||
Net cash flows provided (used) by investing activities | $ | (64 | ) | $ | (300 | ) | $ | 143 | ||||
Cash Flows from Financing Activities | ||||||||||||
Dividends paid to common stockholders | $ | (216 | ) | $ | (162 | ) | $ | (108 | ) | |||
Proceeds from the issuance of debt | — | — | 396 | |||||||||
Repayment of debt | (3 | ) | — | (409 | ) | |||||||
Stock options exercised | 2 | 1 | 5 | |||||||||
Other, net | 9 | 3 | 1 | |||||||||
Net cash flows used by financing activities | $ | (208 | ) | $ | (158 | ) | $ | (115 | ) | |||
Net change in cash | $ | 1 | $ | — | $ | — | ||||||
Cash, beginning of year | — | — | — | |||||||||
Cash, end of year | $ | 1 | $ | — | $ | — | ||||||
See accompanying Notes to Condensed Financial Information as well as the Consolidated Financial Statements and accompanying Notes. | ||||||||||||
Notes to Condensed Financial Information | ||||||||||||
A. Basis of Presentation | ||||||||||||
The condensed financial information of CNA Financial Corporation (CNAF or the Parent Company) should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in Item 8 of this Form 10-K. CNAF’s subsidiaries are accounted for using the equity method of accounting. Equity in net income of these subsidiaries is presented on the Condensed Statements of Operations as Equity in net income of subsidiaries. Loews owned approximately 90% of the outstanding common stock of CNAF as of December 31, 2013. | ||||||||||||
B. Commitments, Contingencies and Guarantees | ||||||||||||
In the course of selling business entities and assets to third parties, CNAF has agreed to indemnify purchasers for losses arising out of breaches of representation and warranties with respect to the business entities or assets being sold, including, in certain cases, losses arising from undisclosed liabilities or certain named litigation. Such indemnification agreements may include provisions that survive indefinitely. As of December 31, 2013, the aggregate amount of quantifiable indemnification agreements in effect for sales of business entities, assets and third-party loans was $255 million. | ||||||||||||
In addition, CNAF has agreed to provide indemnification to third-party purchasers for certain losses associated with sold business entities or assets that are not limited by a contractual monetary amount. As of December 31, 2013, CNAF had outstanding unlimited indemnifications in connection with the sales of certain of its business entities or assets that included tax liabilities arising prior to a purchaser’s ownership of an entity or asset, defects in title at the time of sale, employee claims arising prior to closing and in some cases losses arising from certain litigation and undisclosed liabilities. These indemnification agreements survive until the applicable statutes of limitation expire or until the agreed upon contract terms expire. As of December 31, 2013, CNAF has no recorded liabilities related to indemnification agreements. The Parent Company does not believe that any indemnity claim payments are likely. | ||||||||||||
In the normal course of business, CNAF has provided guarantees to holders of structured settlement annuities (SSA) provided by certain of its subsidiaries, which expire through 2120. CNAF would be required to remit SSA payments due to claimants if the primary obligor failed to perform on these contracts. The potential amount of future payments that CNAF could be required to pay under these guarantees are approximately $2 billion at December 31, 2013. The Parent Company does not believe that a payable is likely under these guarantees. |
Schedule_III_Supplementary_Ins
Schedule III. Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2013 | |
Supplementary Insurance Information [Abstract] | ' |
Schedule III. Supplementary Insurance Information | ' |
SCHEDULE III. SUPPLEMENTARY INSURANCE INFORMATION | |
Incorporated herein by reference to Note O to the Consolidated Financial Statements included under Item 8. |
Schedule_IV_Reinsurance
Schedule IV. Reinsurance | 12 Months Ended |
Dec. 31, 2013 | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | ' |
Schedule IV. Reinsurance | ' |
SCHEDULE IV. REINSURANCE | |
Incorporated herein by reference to Note H to the Consolidated Financial Statements included under Item 8. |
Schedule_V_Valuation_and_Quali
Schedule V. Valuation and Qualifying Accounts | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | |||||||||||||||||||
Schedule V. Valuation and Qualifying Accounts | ' | |||||||||||||||||||
SCHEDULE V. VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||||||
(In millions) | Balance at Beginning of Period | Charged to Costs and Expenses | Charged to Other Accounts (a) | Deductions | Balance at End of Period | |||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||
Deducted from assets: | ||||||||||||||||||||
Allowance for doubtful accounts: | ||||||||||||||||||||
Insurance and reinsurance receivables | $ | 174 | $ | (6 | ) | $ | (3 | ) | $ | (10 | ) | $ | 155 | |||||||
Year ended December 31, 2012 | ||||||||||||||||||||
Deducted from assets: | ||||||||||||||||||||
Allowance for doubtful accounts: | ||||||||||||||||||||
Insurance and reinsurance receivables | $ | 203 | $ | (23 | ) | $ | 5 | $ | (11 | ) | $ | 174 | ||||||||
Year ended December 31, 2011 | ||||||||||||||||||||
Deducted from assets: | ||||||||||||||||||||
Allowance for doubtful accounts: | ||||||||||||||||||||
Insurance and reinsurance receivables | $ | 285 | $ | (55 | ) | $ | — | $ | (27 | ) | $ | 203 | ||||||||
(a) Amount includes effects of foreign currency translation. |
Schedule_VI_Supplemental_Infor
Schedule VI. Supplemental Information Concerning Property and Casualty Insurance Operations | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Supplemental Information for Property, Casualty Insurance Underwriters [Abstract] | ' | |||||||||||
Schedule VI. Supplemental Information Concerning Property and Casualty Insurance Operations | ' | |||||||||||
SCHEDULE VI. SUPPLEMENTAL INFORMATION CONCERNING PROPERTY AND CASUALTY INSURANCE OPERATIONS | ||||||||||||
As of and for the years ended December 31 | Consolidated Property and Casualty Operations | |||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||
Deferred acquisition costs | $ | 624 | $ | 598 | ||||||||
Reserves for unpaid claim and claim adjustment expenses | 24,015 | 24,696 | ||||||||||
Discount deducted from claim and claim adjustment expense reserves above (based on interest rates ranging from 3.0% to 9.7%) | 1,586 | 1,850 | ||||||||||
Unearned premiums | 3,718 | 3,610 | ||||||||||
Net written premiums | 7,348 | 6,964 | $ | 6,798 | ||||||||
Net earned premiums | 7,271 | 6,881 | 6,603 | |||||||||
Net investment income | 2,240 | 2,074 | 1,845 | |||||||||
Incurred claim and claim adjustment expenses related to current year | 5,113 | 5,266 | 4,901 | |||||||||
Incurred claim and claim adjustment expenses related to prior years | (115 | ) | (180 | ) | (429 | ) | ||||||
Amortization of deferred acquisition costs | 1,362 | 1,274 | 1,176 | |||||||||
Paid claim and claim adjustment expenses | 5,566 | 5,257 | 4,499 | |||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Accounting Policies [Abstract] | ' | ||||||||||
Consolidation | ' | ||||||||||
The accompanying Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). Intercompany amounts have been eliminated. | |||||||||||
Use of Estimates | ' | ||||||||||
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates. | |||||||||||
Discontinued Operations | ' | ||||||||||
The Company has historically reported certain run-off insurance operations acquired in its merger with The Continental Corporation in 1995 as discontinued operations. Due to the immateriality of the remaining liabilities, effective in the third quarter of 2011, the Company is no longer reporting these run-off operations as discontinued operations. | |||||||||||
Premiums | ' | ||||||||||
Premiums: Insurance premiums on property and casualty insurance contracts are recognized in proportion to the underlying risk insured which principally are earned ratably over the duration of the policies. Premiums on long term care contracts are earned ratably over the policy year in which they are due. The reserve for unearned premiums represents the portion of premiums written relating to the unexpired terms of coverage. | |||||||||||
Insurance receivables include balances due currently or in the future, including amounts due from insureds related to losses under high deductible policies, and are presented at unpaid balances, net of an allowance for uncollectible receivables. Amounts are considered past due based on policy payment terms. That allowance is determined based on periodic evaluations of aged receivables, management's experience and current economic conditions. Insurance receivables and any related allowance are written off after collection efforts are exhausted or a negotiated settlement is reached. | |||||||||||
Property and casualty contracts that are retrospectively rated contain provisions that result in an adjustment to the initial policy premium depending on the contract provisions and loss experience of the insured during the experience period. For such contracts, the Company estimates the amount of ultimate premiums that the Company may earn upon completion of the experience period and recognizes either an asset or a liability for the difference between the initial policy premium and the estimated ultimate premium. The Company adjusts such estimated ultimate premium amounts during the course of the experience period based on actual results to date. The resulting adjustment is recorded as either a reduction of or an increase to the earned premiums for the period. | |||||||||||
Claim and claim adjustment expense reserves | ' | ||||||||||
Claim and claim adjustment expense reserves: Claim and claim adjustment expense reserves, except reserves for structured settlements not associated with asbestos and environmental pollution (A&EP), workers' compensation lifetime claims, and accident and health claims, are not discounted and are based on 1) case basis estimates for losses reported on direct business, adjusted in the aggregate for ultimate loss expectations; 2) estimates of incurred but not reported (IBNR) losses; 3) estimates of losses on assumed reinsurance; 4) estimates of future expenses to be incurred in the settlement of claims; 5) estimates of salvage and subrogation recoveries and 6) estimates of amounts due from insureds related to losses under high deductible policies. Management considers current conditions and trends as well as past Company and industry experience in establishing these estimates. The effects of inflation, which can be significant, are implicitly considered in the reserving process and are part of the recorded reserve balance. Ceded claim and claim adjustment expense reserves are reported as a component of Reinsurance receivables on the Consolidated Balance Sheets. | |||||||||||
Claim and claim adjustment expense reserves are presented net of anticipated amounts due from insureds related to losses under deductible policies of $1.3 billion as of December 31, 2013 and 2012. A significant portion of these amounts are supported by collateral. The Company has an allowance for uncollectible deductible amounts, which is presented as a component of the allowance for doubtful accounts included in Insurance receivables on the Consolidated Balance Sheets. | |||||||||||
Structured settlements have been negotiated for certain property and casualty insurance claims. Structured settlements are agreements to provide fixed periodic payments to claimants. Certain structured settlements are funded by annuities purchased from Continental Assurance Company (CAC) for which the related annuity obligations are reported in Future policy benefits reserves. Obligations for structured settlements not funded by annuities are included in claim and claim adjustment expense reserves and carried at present values determined using interest rates ranging from 7.1% to 9.7% at December 31, 2013 and 2012. At December 31, 2013 and 2012, the discounted reserves for unfunded structured settlements were $580 million and $602 million, net of discount of $969 million and $1.0 billion. | |||||||||||
Workers' compensation lifetime claim reserves are calculated using mortality assumptions determined through statutory regulation and economic factors. Accident and health claim reserves are calculated using mortality and morbidity assumptions based on Company and industry experience. Workers' compensation lifetime claim reserves and accident and health claim reserves are discounted at interest rates ranging from 3.0% to 6.8% at December 31, 2013 and 3.0% to 6.5% at December 31, 2012. At December 31, 2013 and 2012, such discounted reserves totaled $2.4 billion and $2.2 billion, net of discount of $617 million and $837 million. | |||||||||||
Future policy benefits reserves | ' | ||||||||||
Future policy benefits reserves: Reserves for long term care products and payout annuity contracts are computed using the net level premium method, which incorporates actuarial assumptions as to morbidity, mortality, persistency, discount rate and expenses. Expense assumptions include the estimated effects of expenses to be incurred beyond the premium paying period. Actuarial assumptions generally vary by plan, age at issue and policy duration. The initial assumptions are determined at issuance, include a margin for adverse deviation, and are locked in throughout the life of the contract unless a premium deficiency develops. If a premium deficiency emerges, the assumptions are unlocked and deferred acquisition costs, if any, and the future policy benefit reserves are adjusted. Interest rates for long-term care products range from 4.5% to 7.9% at December 31, 2013 and from 5.0% to 7.4% at December 31, 2012. Interest rates for payout annuity contracts range from 5.0% to 8.7% at December 31, 2013 and 2012. In 2012, the Company unlocked assumptions related to its payout annuity contracts due to anticipated adverse changes in discount rates, which reflected the then current low interest rate environment and our view of expected investment yields, resulting in loss recognition which increased insurance liabilities by $33 million. | |||||||||||
Policyholders' funds reserves | ' | ||||||||||
Policyholders' funds reserves: Policyholders' funds reserves primarily include reserves for investment contracts without life contingencies. For these contracts, policyholder liabilities are generally equal to the accumulated policy account values, which consist of an accumulation of deposit payments plus credited interest, less withdrawals and amounts assessed through the end of the period. | |||||||||||
Guaranty fund and other insurance-related assessments | ' | ||||||||||
Guaranty fund and other insurance-related assessments: Liabilities for guaranty fund and other insurance-related assessments are accrued when an assessment is probable, when it can be reasonably estimated, and when the event obligating the entity to pay an imposed or probable assessment has occurred. Liabilities for guaranty funds and other insurance-related assessments are not discounted and are included as part of Other liabilities on the Consolidated Balance Sheets. As of December 31, 2013 and 2012, the liability balances were $143 million. As of December 31, 2013 and 2012, included in Other assets on the Consolidated Balance Sheets were $1 million and $2 million of related assets for premium tax offsets. This asset is limited to the amount that is able to be offset against premium tax on future premium collections from business written or committed to be written. | |||||||||||
Reinsurance | ' | ||||||||||
Reinsurance: Reinsurance accounting allows for contractual cash flows to be reflected as premiums and losses. To qualify for reinsurance accounting, reinsurance agreements must include risk transfer. To meet risk transfer requirements, a reinsurance contract must include both insurance risk, consisting of underwriting and timing risk, and a reasonable possibility of a significant loss for the assuming entity. | |||||||||||
Reinsurance receivables related to paid losses are presented at unpaid balances. Reinsurance receivables related to unpaid losses are estimated in a manner consistent with claim and claim adjustment expense reserves or future policy benefits reserves. Reinsurance receivables are reported net of an allowance for uncollectible amounts on the Consolidated Balance Sheets. The cost of reinsurance is primarily accounted for over the life of the underlying reinsured policies using assumptions consistent with those used to account for the underlying policies or over the reinsurance contract period. The ceding of insurance does not discharge the primary liability of the Company. | |||||||||||
The Company has established an allowance for uncollectible reinsurance receivables which relates to both amounts already billed on ceded paid losses as well as ceded reserves that will be billed when losses are paid in the future. The allowance for uncollectible reinsurance receivables is estimated on the basis of periodic evaluations of balances due from reinsurers, reinsurer solvency, management's experience and current economic conditions. Reinsurer financial strength ratings are updated and reviewed on an annual basis or sooner if the Company becomes aware of significant changes related to a reinsurer. Because billed receivables generally approximate 5% or less of total reinsurance receivables, the age of the reinsurance receivables related to paid losses is not a significant input into the allowance analysis. Changes in the allowance for uncollectible reinsurance receivables are presented as a component of Insurance claims and policyholders' benefits on the Consolidated Statements of Operations. | |||||||||||
Amounts are considered past due based on the reinsurance contract terms. Reinsurance receivables related to paid losses and any related allowance are written off after collection efforts have been exhausted or a negotiated settlement is reached with the reinsurer. Reinsurance receivables related to paid losses from insolvent insurers are written off when the settlement due from the estate can be reasonably estimated. At the time reinsurance receivables related to paid losses are written off, any required adjustment to reinsurance receivables related to unpaid losses is recorded as a component of Insurance claims and policyholders' benefits on the Consolidated Statements of Operations. | |||||||||||
Reinsurance contracts that do not effectively transfer the economic risk of loss on the underlying policies are recorded using the deposit method of accounting, which requires that premium paid or received by the ceding company or assuming company be accounted for as a deposit asset or liability. The Company had $3 million recorded as deposit assets at December 31, 2013 and 2012, and $130 million and $125 million recorded as deposit liabilities at December 31, 2013 and 2012. Income on reinsurance contracts accounted for under the deposit method is recognized using an effective yield based on the anticipated timing of payments and the remaining life of the contract. When the anticipated timing of payments changes, the effective yield is recalculated to reflect actual payments to date and the estimated timing of future payments. The deposit asset or liability is adjusted to the amount that would have existed had the new effective yield been applied since the inception of the contract. | |||||||||||
Deferred acquisition costs | ' | ||||||||||
Deferred acquisition costs: Acquisition costs include commissions, premium taxes and certain underwriting and policy issuance costs which are incremental direct costs of successful contract acquisitions. Deferred acquisition costs related to long term care contracts issued prior to January 1, 2004 include costs which vary with and are primarily related to the acquisition of business. | |||||||||||
Acquisition costs related to property and casualty business are deferred and amortized ratably over the period the related premiums are earned. | |||||||||||
Deferred acquisition costs related to long term care contracts are amortized over the premium-paying period of the related policies using assumptions consistent with those used for computing future policy benefit reserves for such contracts. Assumptions are made at the date of policy issuance or acquisition and are consistently applied during the lives of the contracts. Deviations from estimated experience are included in results of operations when they occur. For these contracts, the amortization period is typically the estimated life of the policy. At December 31, 2013 and 2012, Deferred acquisition costs were presented net of Shadow Adjustments, as defined later in this note, of $342 million and $369 million. | |||||||||||
The Company evaluates deferred acquisition costs for recoverability. Anticipated investment income is considered in the determination of the recoverability of deferred acquisition costs. Adjustments, if necessary, are recorded in current results of operations. | |||||||||||
Deferred acquisition costs are presented net of ceding commissions and other ceded acquisition costs. Unamortized deferred acquisition costs relating to contracts that have been substantially changed by a modification in benefits, features, rights or coverages that were not anticipated in the original contract are not deferred and are included as a charge to operations in the period during which the contract modification occurred. | |||||||||||
Investments in life settlement contracts and related revenue recognition | ' | ||||||||||
Investments in life settlement contracts and related revenue recognition: Prior to 2002, the Company purchased investments in life settlement contracts. A life settlement contract is a contract between the owner of a life insurance policy (the policy owner) and a third-party investor (investor). Under a life settlement contract, the Company obtains the ownership and beneficiary rights of an underlying life insurance policy. | |||||||||||
The Company accounts for its investments in life settlement contracts using the fair value method. Under the fair value method, each life settlement contract is carried at its fair value at the end of each reporting period. The change in fair value, life insurance proceeds received and periodic maintenance costs, such as premiums, necessary to keep the underlying policy in force, are recorded in Other revenues on the Consolidated Statements of Operations. | |||||||||||
The fair value of the Company's investments in life settlement contracts were $88 million and $100 million at December 31, 2013 and 2012, and are included in Other assets on the Consolidated Balance Sheets. The cash receipts and payments related to life settlement contracts are included in Cash flows from operating activities on the Consolidated Statements of Cash Flows. | |||||||||||
The following table details the values for life settlement contracts. The determination of fair value is discussed in Note D. | |||||||||||
December 31, 2013 | Number of Life Settlement Contracts | Fair Value of Life Settlement Contracts | Face Amount of Life Insurance Policies | ||||||||
(In millions) | (In millions) | ||||||||||
Estimated maturity during: | |||||||||||
2014 | 60 | $ | 13 | $ | 39 | ||||||
2015 | 60 | 11 | 35 | ||||||||
2016 | 50 | 9 | 32 | ||||||||
2017 | 50 | 8 | 29 | ||||||||
2018 | 40 | 7 | 26 | ||||||||
Thereafter | 364 | 40 | 217 | ||||||||
Total | 624 | $ | 88 | $ | 378 | ||||||
The Company uses an actuarial model to estimate the aggregate face amount of life insurance that is expected to mature in each future year and the corresponding fair value. This model projects the likelihood of the insured's death for each inforce policy based upon the Company's estimated mortality rates, which may vary due to the relatively small size of the portfolio of life settlement contracts. The number of life settlement contracts presented in the table above is based upon the average face amount of inforce policies estimated to mature in each future year. | |||||||||||
The increase (decrease) in fair value recognized for the years ended December 31, 2013, 2012 and 2011 on contracts still being held was $(2) million, $11 million and $5 million. The gains recognized during the years ended December 31, 2013, 2012 and 2011 on contracts that settled were $15 million, $42 million and $28 million. | |||||||||||
Separate Account Business | ' | ||||||||||
Separate Account Business: Separate account assets and liabilities represent contract holder funds related to investment and annuity products for which the policyholder assumes substantially all the risk and reward. The assets are segregated into accounts with specific underlying investment objectives and are legally segregated from the Company. All assets of the separate account business are carried at fair value with an equal amount recorded for separate account liabilities. Fee income accruing to the Company related to separate accounts is primarily included within Other revenues on the Consolidated Statements of Operations. | |||||||||||
A number of separate account pension deposit contracts guarantee principal and an annual minimum rate of interest. If aggregate contract value in the separate account exceeds the fair value of the related assets, an additional Policyholders' funds liability is established. Certain of these contracts are subject to a fair value adjustment if terminated by the policyholder. | |||||||||||
Investments | ' | ||||||||||
Investments | |||||||||||
The Company classifies its fixed maturity securities and its equity securities as either available-for-sale or trading, and as such, they are carried at fair value. Changes in fair value of trading securities are reported within Net investment income on the Consolidated Statements of Operations. Changes in fair value related to available-for-sale securities are reported as a component of Other comprehensive income. The cost of fixed maturity securities classified as available-for-sale is adjusted for amortization of premiums and accretion of discounts to maturity, which are included in Net investment income on the Consolidated Statements of Operations. Losses may be recognized within Net realized investment gains (losses) on the Consolidated Statements of Operations when a decline in value is determined by the Company to be other-than-temporary. | |||||||||||
To the extent that unrealized gains on fixed income securities supporting long term care products and payout annuity contracts would result in a premium deficiency if those gains were realized, a related decrease in Deferred acquisition costs and/or increase in Insurance reserves are recorded, net of tax, as a reduction of net unrealized gains through Other comprehensive income (Shadow Adjustments). Shadow Adjustments, net of tax, decreased $979 million and increased $789 million for the years ended December 31, 2013 and 2012. At December 31, 2013 and 2012, net unrealized gains on investments included in Accumulated other comprehensive income (AOCI) were correspondingly reduced by $532 million and $1,511 million. | |||||||||||
For asset-backed securities included in fixed maturity securities, the Company recognizes income using an effective yield based on anticipated prepayments and the estimated economic life of the securities. When estimates of prepayments change, the effective yield is recalculated to reflect actual payments to date and anticipated future payments. The amortized cost of high credit quality securities is adjusted to the amount that would have existed had the new effective yield been applied since the acquisition of the securities. Such adjustments are reflected in Net investment income on the Consolidated Statements of Operations. Interest income on lower rated securities is determined using the prospective yield method. | |||||||||||
The Company's carrying value of investments in limited partnerships is its share of the net asset value of each partnership, as determined by the General Partner. Certain partnerships for which results are not available on a timely basis are reported on a lag, primarily three months or less. Changes in net asset values are accounted for under the equity method and recorded within Net investment income on the Consolidated Statements of Operations. | |||||||||||
Mortgage loans are commercial in nature, are carried at unpaid principal balance, net of unamortized fees and any valuation allowance, and are recorded once funded. Mortgage loans are considered to be impaired loans when it is probable that contractual principal and interest payments will not be collected. A valuation allowance is established for impaired loans to the extent that the present value of expected future cash flows discounted at the loan's original effective interest rate is less than the carrying value of the loan. Interest income from mortgage loans is recognized on an accrual basis using the effective yield method. Accrual of income is generally suspended for mortgage loans that are impaired and collection of principal and interest payments is unlikely. Mortgage loans are considered past due when full principal or interest payments have not been received according to contractual terms. | |||||||||||
Other invested assets are carried at fair value and include overseas deposits and certain derivative securities. Overseas deposits are primarily short-term government securities, agency securities, and corporate bonds held in trusts that are managed by Lloyd's. These funds are required of Lloyd's syndicates to protect policyholders in overseas markets and may be denominated in local currency. | |||||||||||
Short term investments are carried at fair value, with the exception of cash accounts earning interest, which are carried at cost and approximate fair value. Changes in fair value are reported as a component of Other comprehensive income. | |||||||||||
Purchases and sales of all securities are recorded on the trade date, except for private placement debt securities, including bank loan participations, which are recorded once funded. Realized investment gains and losses are determined on the basis of the cost or amortized cost of the specific securities sold. | |||||||||||
Variable Interest Entities | ' | ||||||||||
In the normal course of investing activities, the Company enters into relationships with variable interest entities (VIEs), primarily as a passive investor in certain limited partnerships and asset-backed securities issued by third-party VIEs. The Company is not the primary beneficiary of these VIEs, and therefore does not consolidate them. The Company determines whether it is the primary beneficiary of a VIE based on a qualitative assessment of the entity’s purpose, the nature of its operations, its capital structure, its contractual terms and the Company’s relative exposure to the related risks of the VIE. The Company’s maximum exposure to loss with respect to these investments is limited to the investment carrying values included in the Company’s Consolidated Balance Sheets and any unfunded commitments. | |||||||||||
Impairments, Other Than Temporary | ' | ||||||||||
A security is impaired if the fair value of the security is less than its cost adjusted for accretion, amortization and previously recorded other-than-temporary impairment (OTTI) losses, otherwise defined as an unrealized loss. When a security is impaired, the impairment is evaluated to determine whether it is temporary or other-than-temporary. | |||||||||||
Significant judgment is required in the determination of whether an OTTI loss has occurred for a security. The Company follows a consistent and systematic process for determining and recording an OTTI loss. The Company has established a committee responsible for the OTTI process. This committee, referred to as the Impairment Committee, is made up of three officers appointed by the Company’s Chief Financial Officer. The Impairment Committee is responsible for evaluating all securities in an unrealized loss position on at least a quarterly basis. | |||||||||||
The Impairment Committee’s assessment of whether an OTTI loss has occurred incorporates both quantitative and qualitative information. Fixed maturity securities that the Company intends to sell, or it more likely than not will be required to sell before recovery of amortized cost, are considered to be other-than-temporarily impaired and the entire difference between the amortized cost basis and fair value of the security is recognized as an OTTI loss in earnings. The remaining fixed maturity securities in an unrealized loss position are evaluated to determine if a credit loss exists. The factors considered by the Impairment Committee include (a) the financial condition and near term prospects of the issuer, (b) whether the debtor is current on interest and principal payments, (c) credit ratings of the securities and (d) general market conditions and industry or sector specific outlook. The Company also considers results and analysis of cash flow modeling for asset-backed securities, and when appropriate, other fixed maturity securities. The focus of the analysis for asset-backed securities is on assessing the sufficiency and quality of underlying collateral and timing of cash flows based on scenario tests. If the present value of the modeled expected cash flows equals or exceeds the amortized cost of a security, no credit loss is judged to exist and the asset-backed security is deemed to be temporarily impaired. If the present value of the expected cash flows is less than amortized cost, the security is judged to be other-than-temporarily impaired for credit reasons and that shortfall, referred to as the credit component, is recognized as an OTTI loss in earnings. The difference between the adjusted amortized cost basis and fair value, referred to as the non-credit component, is recognized as OTTI in Other comprehensive income. In subsequent reporting periods, a change in intent to sell or further credit impairment on a security whose fair value has not deteriorated will cause the non-credit component originally recorded as OTTI in Other comprehensive income to be recognized as an OTTI loss in earnings. | |||||||||||
The Company performs the discounted cash flow analysis using stressed scenarios to determine future expectations regarding recoverability. For asset-backed securities, significant assumptions enter into these cash flow projections including delinquency rates, probable risk of default, loss severity upon a default, over collateralization and interest coverage triggers, and credit support from lower level tranches. | |||||||||||
The Company applies the same impairment model as described above for the majority of non-redeemable preferred stock securities on the basis that these securities possess characteristics similar to debt securities and that the issuers maintain their ability to pay dividends. For all other equity securities, in determining whether the security is other-than-temporarily impaired, the Impairment Committee considers a number of factors including, but not limited to: (a) the length of time and the extent to which the fair value has been less than amortized cost, (b) the financial condition and near term prospects of the issuer, (c) the intent and ability of the Company to retain its investment for a period of time sufficient to allow for an anticipated recovery in value and (d) general market conditions and industry or sector specific outlook. | |||||||||||
Income Taxes | ' | ||||||||||
Income Taxes | |||||||||||
The Company and its eligible subsidiaries (CNA Tax Group) are included in the consolidated federal income tax return of Loews and its eligible subsidiaries. The Company accounts for income taxes under the asset and liability method. Under the asset and liability method, deferred income taxes are recognized for temporary differences between the financial statement and tax return bases of assets and liabilities, based on enacted tax rates and other provisions of the tax law. The effect of a change in tax laws or rates on deferred tax assets and liabilities is recognized in income in the period in which such change is enacted. Future tax benefits are recognized to the extent that realization of such benefits is more likely than not, and a valuation allowance is established for any portion of a deferred tax asset that management believes will not be realized. | |||||||||||
Pension and Postretirement Benefits | ' | ||||||||||
Pension and Postretirement Benefits | |||||||||||
The Company recognizes the overfunded or underfunded status of its defined benefit plans in Other assets or Other liabilities on the Consolidated Balance Sheets. Changes in funded status related to prior service costs and credits and actuarial gains and losses are recognized in the year in which the changes occur through Other comprehensive income. Annual service cost, interest cost, expected return on plan assets, amortization of prior service costs and credits, and amortization of actuarial gains and losses are recognized in the Consolidated Statements of Operations. | |||||||||||
Stock-Based Compensation | ' | ||||||||||
Stock-Based Compensation | |||||||||||
The Company records compensation expense using the fair value method for all awards it grants, modifies or cancels primarily on a straight-line basis over the requisite service period, generally three to four years. | |||||||||||
Foreign Currency | ' | ||||||||||
Foreign Currency | |||||||||||
Foreign currency translation gains and losses are reflected in Stockholders' equity as a component of Accumulated other comprehensive income. The Company's foreign subsidiaries' balance sheet accounts are translated at the exchange rates in effect at each reporting date and income statement accounts are either translated at the exchange rate on the date of the transaction or at the average exchange rates. Foreign currency transaction gains of $2 million, $12 million and $4 million were included in determining net income (loss) for the years ended December 31, 2013, 2012 and 2011. | |||||||||||
Property and Equipment | ' | ||||||||||
Property and Equipment | |||||||||||
Property and equipment are carried at cost less accumulated depreciation. Depreciation is based on the estimated useful lives of the various classes of property and equipment and is determined principally on the straight-line method. Furniture and fixtures are depreciated over seven years. Office equipment is depreciated over five years. The estimated lives for data processing equipment and software range from three to five years. Leasehold improvements are depreciated over the corresponding lease terms not to exceed the underlying asset life. The Company's owned buildings, and related capital improvements, are depreciated over periods not to exceed fifty years. | |||||||||||
Goodwill | ' | ||||||||||
Goodwill | |||||||||||
Goodwill represents the excess of purchase price over the fair value of the net assets of acquired entities and businesses. Goodwill related to Hardy may change from period to period as a result of foreign currency translation. | |||||||||||
Goodwill is tested for impairment annually or when certain triggering events require such tests. As a result of reviews completed for the year ended December 31, 2013, the Company determined that the estimated fair value of the reporting units were in excess of their carrying value including Goodwill. Changes in future periods in assumptions about the level of economic capital, business growth, earnings projections or the weighted average cost of capital could result in a goodwill impairment | |||||||||||
Intangible Assets | ' | ||||||||||
Intangible Assets | |||||||||||
Intangible assets are reported within Other assets. Finite-lived intangible assets are amortized over their estimated useful lives. Indefinite-lived intangible assets are tested for impairment annually or when certain triggering events require such tests. | |||||||||||
Earnings (Loss) Per Share Data | ' | ||||||||||
Earnings (Loss) Per Share Data | |||||||||||
Earnings (loss) per share attributable to the Company's common stockholders is based on weighted average number of outstanding common shares. Basic earnings (loss) per share excludes the impact of dilutive securities and is computed by dividing Net income (loss) attributable to CNA by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. | |||||||||||
For the years ended December 31, 2013, 2012 and 2011, approximately 552 thousand, 417 thousand and 290 thousand potential shares attributable to exercises under stock-based employee compensation plans were included in the calculation of diluted earnings per share. For those same periods, approximately 111 thousand, 730 thousand and 1.1 million potential shares attributable to exercises under stock-based employee compensation plans were not included in the calculation of diluted earnings per share because the effect would have been antidilutive. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Life Settlement Contracts) (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Accounting Policies [Abstract] | ' | ||||||||||
Life settlement contracts | ' | ||||||||||
December 31, 2013 | Number of Life Settlement Contracts | Fair Value of Life Settlement Contracts | Face Amount of Life Insurance Policies | ||||||||
(In millions) | (In millions) | ||||||||||
Estimated maturity during: | |||||||||||
2014 | 60 | $ | 13 | $ | 39 | ||||||
2015 | 60 | 11 | 35 | ||||||||
2016 | 50 | 9 | 32 | ||||||||
2017 | 50 | 8 | 29 | ||||||||
2018 | 40 | 7 | 26 | ||||||||
Thereafter | 364 | 40 | 217 | ||||||||
Total | 624 | $ | 88 | $ | 378 | ||||||
Investments_Tables
Investments (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Investments [Abstract] | ' | |||||||||||||||||||||||
Net investment income | ' | |||||||||||||||||||||||
Net Investment Income | ||||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||||||||||||||
Fixed maturity securities | $ | 1,998 | $ | 2,022 | $ | 2,011 | ||||||||||||||||||
Short term investments | 3 | 5 | 8 | |||||||||||||||||||||
Limited partnership investments | 451 | 251 | 48 | |||||||||||||||||||||
Equity securities | 12 | 12 | 20 | |||||||||||||||||||||
Mortgage loans | 23 | 17 | 9 | |||||||||||||||||||||
Trading portfolio | 17 | 24 | 9 | |||||||||||||||||||||
Other | 2 | 7 | 7 | |||||||||||||||||||||
Gross investment income | 2,506 | 2,338 | 2,112 | |||||||||||||||||||||
Investment expense | (56 | ) | (56 | ) | (58 | ) | ||||||||||||||||||
Net investment income | $ | 2,450 | $ | 2,282 | $ | 2,054 | ||||||||||||||||||
Net realized investment gains (losses) | ' | |||||||||||||||||||||||
Net Realized Investment Gains (Losses) | ||||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||||||||||||||
Net realized investment gains (losses): | ||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||
Gross realized gains | $ | 201 | $ | 232 | $ | 289 | ||||||||||||||||||
Gross realized losses | (146 | ) | (149 | ) | (311 | ) | ||||||||||||||||||
Net realized investment gains (losses) on fixed maturity securities | 55 | 83 | (22 | ) | ||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
Gross realized gains | 13 | 19 | 10 | |||||||||||||||||||||
Gross realized losses | (35 | ) | (42 | ) | (11 | ) | ||||||||||||||||||
Net realized investment gains (losses) on equity securities | (22 | ) | (23 | ) | (1 | ) | ||||||||||||||||||
Derivatives | (9 | ) | (2 | ) | — | |||||||||||||||||||
Short term investments and other | 7 | 5 | 21 | |||||||||||||||||||||
Net realized investment gains (losses) | $ | 31 | $ | 63 | $ | (2 | ) | |||||||||||||||||
Net change in unrealized gains (losses) on investments | ' | |||||||||||||||||||||||
Net Change in Unrealized Gains | ||||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||||||||||||||
Net change in unrealized gains on investments: | ||||||||||||||||||||||||
Fixed maturity securities | $ | (2,541 | ) | $ | 1,871 | $ | 1,442 | |||||||||||||||||
Equity securities | (15 | ) | 5 | (2 | ) | |||||||||||||||||||
Other | — | (1 | ) | (3 | ) | |||||||||||||||||||
Total net change in unrealized gains on investments | $ | (2,556 | ) | $ | 1,875 | $ | 1,437 | |||||||||||||||||
Components of net other-than-temporary impairment losses recognized in earnings | ' | |||||||||||||||||||||||
The components of OTTI losses recognized in earnings by asset type are summarized in the following table. | ||||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||||||||||||||
Fixed maturity securities available-for-sale: | ||||||||||||||||||||||||
Corporate and other bonds | $ | 22 | $ | 27 | $ | 95 | ||||||||||||||||||
States, municipalities and political subdivisions | — | 34 | — | |||||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||
Residential mortgage-backed | 19 | 50 | 105 | |||||||||||||||||||||
Other asset-backed | 2 | — | 6 | |||||||||||||||||||||
Total asset-backed | 21 | 50 | 111 | |||||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | — | 1 | — | |||||||||||||||||||||
Total fixed maturity securities available-for-sale | 43 | 112 | 206 | |||||||||||||||||||||
Equity securities available-for-sale: | ||||||||||||||||||||||||
Common stock | 8 | 6 | 8 | |||||||||||||||||||||
Preferred stock | 26 | 36 | 1 | |||||||||||||||||||||
Total equity securities available-for-sale | 34 | 42 | 9 | |||||||||||||||||||||
Short term investments | 1 | — | 1 | |||||||||||||||||||||
OTTI losses recognized in earnings | $ | 78 | $ | 154 | $ | 216 | ||||||||||||||||||
Summary of fixed maturity and equity securities | ' | |||||||||||||||||||||||
Summary of Fixed Maturity and Equity Securities | ||||||||||||||||||||||||
December 31, 2013 | Cost or | Gross | Gross | Estimated | Unrealized | |||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | OTTI | ||||||||||||||||||||
(In millions) | Cost | Gains | Losses | Value | Losses (Gains) | |||||||||||||||||||
Fixed maturity securities available-for-sale: | ||||||||||||||||||||||||
Corporate and other bonds | $ | 19,352 | $ | 1,645 | $ | 135 | $ | 20,862 | $ | — | ||||||||||||||
States, municipalities and political subdivisions | 11,281 | 548 | 272 | 11,557 | — | |||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||
Residential mortgage-backed | 4,940 | 123 | 92 | 4,971 | (37 | ) | ||||||||||||||||||
Commercial mortgage-backed | 1,995 | 90 | 22 | 2,063 | (3 | ) | ||||||||||||||||||
Other asset-backed | 945 | 13 | 3 | 955 | — | |||||||||||||||||||
Total asset-backed | 7,880 | 226 | 117 | 7,989 | (40 | ) | ||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 139 | 6 | 1 | 144 | — | |||||||||||||||||||
Foreign government | 531 | 15 | 3 | 543 | — | |||||||||||||||||||
Redeemable preferred stock | 92 | 10 | — | 102 | — | |||||||||||||||||||
Total fixed maturity securities available-for-sale | 39,275 | 2,450 | 528 | 41,197 | $ | (40 | ) | |||||||||||||||||
Total fixed maturity securities trading | 36 | — | — | 36 | ||||||||||||||||||||
Equity securities available-for-sale: | ||||||||||||||||||||||||
Common stock | 36 | 9 | — | 45 | ||||||||||||||||||||
Preferred stock | 143 | 1 | 4 | 140 | ||||||||||||||||||||
Total equity securities available-for-sale | 179 | 10 | 4 | 185 | ||||||||||||||||||||
Total | $ | 39,490 | $ | 2,460 | $ | 532 | $ | 41,418 | ||||||||||||||||
December 31, 2012 | Cost or | Gross | Gross | Estimated | Unrealized | |||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | OTTI | ||||||||||||||||||||
(In millions) | Cost | Gains | Losses | Value | Losses (Gains) | |||||||||||||||||||
Fixed maturity securities available-for-sale: | ||||||||||||||||||||||||
Corporate and other bonds | $ | 19,530 | $ | 2,698 | $ | 21 | $ | 22,207 | $ | — | ||||||||||||||
States, municipalities and political subdivisions | 9,372 | 1,455 | 44 | 10,783 | — | |||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||
Residential mortgage-backed | 5,745 | 246 | 71 | 5,920 | (28 | ) | ||||||||||||||||||
Commercial mortgage-backed | 1,692 | 147 | 17 | 1,822 | (3 | ) | ||||||||||||||||||
Other asset-backed | 929 | 23 | — | 952 | — | |||||||||||||||||||
Total asset-backed | 8,366 | 416 | 88 | 8,694 | (31 | ) | ||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 172 | 11 | 1 | 182 | — | |||||||||||||||||||
Foreign government | 588 | 25 | — | 613 | — | |||||||||||||||||||
Redeemable preferred stock | 113 | 13 | 1 | 125 | — | |||||||||||||||||||
Total fixed maturity securities available-for-sale | 38,141 | 4,618 | 155 | 42,604 | $ | (31 | ) | |||||||||||||||||
Total fixed maturity securities trading | 29 | — | — | 29 | ||||||||||||||||||||
Equity securities available-for-sale: | ||||||||||||||||||||||||
Common stock | 38 | 14 | — | 52 | ||||||||||||||||||||
Preferred stock | 190 | 7 | — | 197 | ||||||||||||||||||||
Total equity securities available-for-sale | 228 | 21 | — | 249 | ||||||||||||||||||||
Total | $ | 38,398 | $ | 4,639 | $ | 155 | $ | 42,882 | ||||||||||||||||
Securities in a gross unrealized loss position | ' | |||||||||||||||||||||||
Securities in a Gross Unrealized Loss Position | ||||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||
December 31, 2013 | Estimated | Gross | Estimated | Gross | Estimated | Gross | ||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | |||||||||||||||||||
(In millions) | Losses | Losses | Losses | |||||||||||||||||||||
Fixed maturity securities available-for-sale: | ||||||||||||||||||||||||
Corporate and other bonds | $ | 3,592 | $ | 129 | $ | 72 | $ | 6 | $ | 3,664 | $ | 135 | ||||||||||||
States, municipalities and political subdivisions | 3,251 | 197 | 129 | 75 | 3,380 | 272 | ||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||
Residential mortgage-backed | 1,293 | 29 | 343 | 63 | 1,636 | 92 | ||||||||||||||||||
Commercial mortgage-backed | 640 | 22 | — | — | 640 | 22 | ||||||||||||||||||
Other asset-backed | 269 | 3 | — | — | 269 | 3 | ||||||||||||||||||
Total asset-backed | 2,202 | 54 | 343 | 63 | 2,545 | 117 | ||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 13 | 1 | — | — | 13 | 1 | ||||||||||||||||||
Foreign government | 111 | 3 | — | — | 111 | 3 | ||||||||||||||||||
Total fixed maturity securities available-for-sale | 9,169 | 384 | 544 | 144 | 9,713 | 528 | ||||||||||||||||||
Equity securities available-for-sale: | ||||||||||||||||||||||||
Preferred stock | 87 | 4 | — | — | 87 | 4 | ||||||||||||||||||
Total | $ | 9,256 | $ | 388 | $ | 544 | $ | 144 | $ | 9,800 | $ | 532 | ||||||||||||
Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||
December 31, 2012 | Estimated | Gross | Estimated | Gross | Estimated | Gross | ||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | |||||||||||||||||||
(In millions) | Losses | Losses | Losses | |||||||||||||||||||||
Fixed maturity securities available-for-sale: | ||||||||||||||||||||||||
Corporate and other bonds | $ | 846 | $ | 13 | $ | 108 | $ | 8 | $ | 954 | $ | 21 | ||||||||||||
States, municipalities and political subdivisions | 254 | 5 | 165 | 39 | 419 | 44 | ||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||
Residential mortgage-backed | 583 | 5 | 452 | 66 | 1,035 | 71 | ||||||||||||||||||
Commercial mortgage-backed | 85 | 2 | 141 | 15 | 226 | 17 | ||||||||||||||||||
Total asset-backed | 668 | 7 | 593 | 81 | 1,261 | 88 | ||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 23 | 1 | — | — | 23 | 1 | ||||||||||||||||||
Redeemable preferred stock | 28 | 1 | — | — | 28 | 1 | ||||||||||||||||||
Total | $ | 1,819 | $ | 27 | $ | 866 | $ | 128 | $ | 2,685 | $ | 155 | ||||||||||||
Activity related to the pretax fixed maturity credit loss component reflected within retained earnings for securities still held for which a portion of an OTTI loss was recognized in OCI | ' | |||||||||||||||||||||||
The following table summarizes the activity for the years ended December 31, 2013, 2012 and 2011 related to the pretax credit loss component reflected in Retained earnings on fixed maturity securities still held at December 31, 2013, 2012 and 2011 for which a portion of an OTTI loss was recognized in Other comprehensive income. | ||||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||||||||||||||
Beginning balance of credit losses on fixed maturity securities | $ | 95 | $ | 92 | $ | 141 | ||||||||||||||||||
Additional credit losses for securities for which an OTTI loss was previously recognized | 2 | 23 | 39 | |||||||||||||||||||||
Credit losses for securities for which an OTTI loss was not previously recognized | — | 2 | 11 | |||||||||||||||||||||
Reductions for securities sold during the period | (23 | ) | (14 | ) | (67 | ) | ||||||||||||||||||
Reductions for securities the Company intends to sell or more likely than not will be required to sell | — | (8 | ) | (32 | ) | |||||||||||||||||||
Ending balance of credit losses on fixed maturity securities | $ | 74 | $ | 95 | $ | 92 | ||||||||||||||||||
Contractual maturity | ' | |||||||||||||||||||||||
Contractual Maturity | ||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||
(In millions) | Cost or | Estimated | Cost or | Estimated | ||||||||||||||||||||
Amortized | Fair | Amortized | Fair | |||||||||||||||||||||
Cost | Value | Cost | Value | |||||||||||||||||||||
Due in one year or less | $ | 2,420 | $ | 2,455 | $ | 1,648 | $ | 1,665 | ||||||||||||||||
Due after one year through five years | 9,496 | 10,068 | 13,603 | 14,442 | ||||||||||||||||||||
Due after five years through ten years | 11,667 | 11,954 | 8,726 | 9,555 | ||||||||||||||||||||
Due after ten years | 15,692 | 16,720 | 14,164 | 16,942 | ||||||||||||||||||||
Total | $ | 39,275 | $ | 41,197 | $ | 38,141 | $ | 42,604 | ||||||||||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Summary of Derivative Instruments [Abstract] | ' | |||||||||||
Summary of aggregate contractual or notional amounts and gross estimated fair values related to derivative financial instruments | ' | |||||||||||
Derivative Financial Instruments | ||||||||||||
December 31, 2013 | Contractual/ | Estimated Fair Value | ||||||||||
Notional | ||||||||||||
(In millions) | Amount | Asset | (Liability) | |||||||||
Without hedge designation | ||||||||||||
Equity warrants | $ | 5 | $ | — | $ | — | ||||||
December 31, 2012 | Contractual/ | Estimated Fair Value | ||||||||||
Notional | ||||||||||||
(In millions) | Amount | Asset | (Liability) | |||||||||
Without hedge designation | ||||||||||||
Credit default swaps - purchased protection | $ | 20 | $ | — | $ | (1 | ) | |||||
Currency forwards | 59 | — | (2 | ) | ||||||||
Equity warrants | 5 | — | — | |||||||||
Total | $ | 84 | $ | — | $ | (3 | ) | |||||
Fair_Value_Tables
Fair Value (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis | ' | |||||||||||||||||||||||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis are summarized below. | ||||||||||||||||||||||||||||||||||||||||
December 31, 2013 | Total | |||||||||||||||||||||||||||||||||||||||
Assets/(Liabilities) | ||||||||||||||||||||||||||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | at Fair Value | ||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||
Corporate and other bonds | $ | 33 | $ | 20,661 | $ | 204 | $ | 20,898 | ||||||||||||||||||||||||||||||||
States, municipalities and political subdivisions | — | 11,486 | 71 | 11,557 | ||||||||||||||||||||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed | — | 4,640 | 331 | 4,971 | ||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed | — | 1,912 | 151 | 2,063 | ||||||||||||||||||||||||||||||||||||
Other asset-backed | — | 509 | 446 | 955 | ||||||||||||||||||||||||||||||||||||
Total asset-backed | — | 7,061 | 928 | 7,989 | ||||||||||||||||||||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 116 | 28 | — | 144 | ||||||||||||||||||||||||||||||||||||
Foreign government | 81 | 462 | — | 543 | ||||||||||||||||||||||||||||||||||||
Redeemable preferred stock | 45 | 57 | — | 102 | ||||||||||||||||||||||||||||||||||||
Total fixed maturity securities | 275 | 39,755 | 1,203 | 41,233 | ||||||||||||||||||||||||||||||||||||
Equity securities | 126 | 48 | 11 | 185 | ||||||||||||||||||||||||||||||||||||
Other invested assets | — | 54 | — | 54 | ||||||||||||||||||||||||||||||||||||
Short term investments | 769 | 563 | — | 1,332 | ||||||||||||||||||||||||||||||||||||
Life settlement contracts, included in Other assets | — | — | 88 | 88 | ||||||||||||||||||||||||||||||||||||
Separate account business | 9 | 171 | 1 | 181 | ||||||||||||||||||||||||||||||||||||
Total assets | $ | 1,179 | $ | 40,591 | $ | 1,303 | $ | 43,073 | ||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||
Derivative financial instruments, included in Other liabilities | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||
Total liabilities | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||
December 31, 2012 | Total | |||||||||||||||||||||||||||||||||||||||
Assets/(Liabilities) | ||||||||||||||||||||||||||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | at Fair Value | ||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||
Corporate and other bonds | $ | 6 | $ | 22,011 | $ | 219 | $ | 22,236 | ||||||||||||||||||||||||||||||||
States, municipalities and political subdivisions | — | 10,687 | 96 | 10,783 | ||||||||||||||||||||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed | — | 5,507 | 413 | 5,920 | ||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed | — | 1,693 | 129 | 1,822 | ||||||||||||||||||||||||||||||||||||
Other asset-backed | — | 584 | 368 | 952 | ||||||||||||||||||||||||||||||||||||
Total asset-backed | — | 7,784 | 910 | 8,694 | ||||||||||||||||||||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 158 | 24 | — | 182 | ||||||||||||||||||||||||||||||||||||
Foreign government | 140 | 473 | — | 613 | ||||||||||||||||||||||||||||||||||||
Redeemable preferred stock | 40 | 59 | 26 | 125 | ||||||||||||||||||||||||||||||||||||
Total fixed maturity securities | 344 | 41,038 | 1,251 | 42,633 | ||||||||||||||||||||||||||||||||||||
Equity securities | 117 | 98 | 34 | 249 | ||||||||||||||||||||||||||||||||||||
Other invested assets | — | 58 | 1 | 59 | ||||||||||||||||||||||||||||||||||||
Short term investments | 987 | 799 | 6 | 1,792 | ||||||||||||||||||||||||||||||||||||
Life settlement contracts, included in Other assets | — | — | 100 | 100 | ||||||||||||||||||||||||||||||||||||
Separate account business | 4 | 306 | 2 | 312 | ||||||||||||||||||||||||||||||||||||
Total assets | $ | 1,452 | $ | 42,299 | $ | 1,394 | $ | 45,145 | ||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||
Derivative financial instruments, included in Other liabilities | $ | — | $ | (2 | ) | $ | (1 | ) | $ | (3 | ) | |||||||||||||||||||||||||||||
Total liabilities | $ | — | $ | (2 | ) | $ | (1 | ) | $ | (3 | ) | |||||||||||||||||||||||||||||
Table of reconciliation for assets and liablities measured at fair value on a recurring basis using significant unobservable inputs | ' | |||||||||||||||||||||||||||||||||||||||
The tables below present a reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||||||
Level 3 | Balance at | Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss)* | Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss) | Purchases | Sales | Settlements | Transfers into | Transfers out | Balance at | Unrealized gains (losses) on Level 3 assets and liabilities held at December 31, 2013 recognized in net income (loss)* | ||||||||||||||||||||||||||||||
(In millions) | January 1, | Level 3 | of Level 3 | December 31, | ||||||||||||||||||||||||||||||||||||
2013 | 2013 | |||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||
Corporate and other bonds | $ | 219 | $ | 3 | $ | — | $ | 142 | $ | (116 | ) | $ | (44 | ) | $ | 51 | $ | (51 | ) | $ | 204 | $ | (2 | ) | ||||||||||||||||
States, municipalities and political subdivisions | 96 | (2 | ) | 4 | 122 | (79 | ) | (61 | ) | 18 | (27 | ) | 71 | — | ||||||||||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed | 413 | 4 | (14 | ) | 116 | (10 | ) | (75 | ) | 4 | (107 | ) | 331 | (3 | ) | |||||||||||||||||||||||||
Commercial mortgage-backed | 129 | — | 11 | 107 | (3 | ) | (11 | ) | 21 | (103 | ) | 151 | — | |||||||||||||||||||||||||||
Other asset-backed | 368 | 5 | (4 | ) | 314 | (197 | ) | (35 | ) | — | (5 | ) | 446 | (2 | ) | |||||||||||||||||||||||||
Total asset-backed | 910 | 9 | (7 | ) | 537 | (210 | ) | (121 | ) | 25 | (215 | ) | 928 | (5 | ) | |||||||||||||||||||||||||
Redeemable preferred stock | 26 | (1 | ) | — | — | — | (25 | ) | — | — | — | — | ||||||||||||||||||||||||||||
Total fixed maturity securities | 1,251 | 9 | (3 | ) | 801 | (405 | ) | (251 | ) | 94 | (293 | ) | 1,203 | (7 | ) | |||||||||||||||||||||||||
Equity securities | 34 | (27 | ) | 3 | 2 | — | — | — | (1 | ) | 11 | (27 | ) | |||||||||||||||||||||||||||
Other invested assets, including derivatives, net | — | — | — | — | (1 | ) | 1 | — | — | — | — | |||||||||||||||||||||||||||||
Short term investments | 6 | — | — | — | (6 | ) | — | — | — | — | — | |||||||||||||||||||||||||||||
Life settlement contracts | 100 | 13 | — | — | — | (25 | ) | — | — | 88 | (2 | ) | ||||||||||||||||||||||||||||
Separate account business | 2 | — | — | 1 | (2 | ) | — | — | — | 1 | — | |||||||||||||||||||||||||||||
Total | $ | 1,393 | $ | (5 | ) | $ | — | $ | 804 | $ | (414 | ) | $ | (275 | ) | $ | 94 | $ | (294 | ) | $ | 1,303 | $ | (36 | ) | |||||||||||||||
Level 3 | Balance at | Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss)* | Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss) | Purchases | Sales | Settlements | Transfers into | Transfers out | Balance at | Unrealized gains (losses) on Level 3 assets and liabilities held at December 31, 2012 recognized in net income (loss)* | ||||||||||||||||||||||||||||||
(In millions) | January 1, | Level 3 | of Level 3 | December 31, | ||||||||||||||||||||||||||||||||||||
2012 | 2012 | |||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||
Corporate and other bonds | $ | 482 | $ | 6 | $ | 4 | $ | 231 | $ | (136 | ) | $ | (88 | ) | $ | 45 | $ | (325 | ) | $ | 219 | $ | (3 | ) | ||||||||||||||||
States, municipalities and political subdivisions | 171 | — | — | 14 | — | (89 | ) | — | — | 96 | — | |||||||||||||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed | 452 | (14 | ) | 2 | 97 | — | (40 | ) | — | (84 | ) | 413 | (18 | ) | ||||||||||||||||||||||||||
Commercial mortgage-backed | 59 | 8 | 14 | 165 | (12 | ) | (28 | ) | 13 | (90 | ) | 129 | — | |||||||||||||||||||||||||||
Other asset-backed | 343 | 11 | 8 | 615 | (365 | ) | (128 | ) | — | (116 | ) | 368 | — | |||||||||||||||||||||||||||
Total asset-backed | 854 | 5 | 24 | 877 | (377 | ) | (196 | ) | 13 | (290 | ) | 910 | (18 | ) | ||||||||||||||||||||||||||
Redeemable preferred stock | — | — | (1 | ) | 53 | (26 | ) | — | — | — | 26 | — | ||||||||||||||||||||||||||||
Total fixed maturity securities | 1,507 | 11 | 27 | 1,175 | (539 | ) | (373 | ) | 58 | (615 | ) | 1,251 | (21 | ) | ||||||||||||||||||||||||||
Equity securities | 67 | (36 | ) | 6 | 27 | (16 | ) | — | — | (14 | ) | 34 | (38 | ) | ||||||||||||||||||||||||||
Other invested assets, including derivatives, net | 10 | — | — | — | — | (10 | ) | — | — | — | — | |||||||||||||||||||||||||||||
Short term investments | 27 | — | — | 23 | (4 | ) | (41 | ) | 1 | — | 6 | — | ||||||||||||||||||||||||||||
Life settlement contracts | 117 | 53 | — | — | — | (70 | ) | — | — | 100 | 11 | |||||||||||||||||||||||||||||
Separate account business | 23 | — | — | — | (21 | ) | — | — | — | 2 | — | |||||||||||||||||||||||||||||
Total | $ | 1,751 | $ | 28 | $ | 33 | $ | 1,225 | $ | (580 | ) | $ | (494 | ) | $ | 59 | $ | (629 | ) | $ | 1,393 | $ | (48 | ) | ||||||||||||||||
Quantitative information about significant unobservable inputs in the fair value measurement of level 3 assets | ' | |||||||||||||||||||||||||||||||||||||||
The table below presents quantitative information about the significant unobservable inputs utilized by the Company in the fair value measurements of Level 3 assets. Valuations for assets and liabilities not presented in the table below are primarily based on broker/dealer quotes for which there is a lack of transparency as to inputs used to develop the valuations. The quantitative detail of these unobservable inputs is neither provided nor reasonably available to the Company. | ||||||||||||||||||||||||||||||||||||||||
Assets | Fair Value at December 31, 2013 | Valuation Technique(s) | Unobservable Input(s) | Range | ||||||||||||||||||||||||||||||||||||
(In millions) | (Weighted Average) | |||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | $ | 142 | Discounted cash flow | Credit spread | 1.74% - 19.90% (3.98%) | |||||||||||||||||||||||||||||||||||
Equity securities | $ | 10 | Market approach | Private offering price | $360.12 - $4,267.66 per share ($1,147.95) | |||||||||||||||||||||||||||||||||||
Life settlement contracts | $ | 88 | Discounted cash flow | Discount rate risk premium | 9% | |||||||||||||||||||||||||||||||||||
Mortality assumption | 70% - 743% (191.6%) | |||||||||||||||||||||||||||||||||||||||
Assets | Fair Value at December 31, 2012 | Valuation Technique(s) | Unobservable Input(s) | Range | ||||||||||||||||||||||||||||||||||||
(In millions) | (Weighted Average) | |||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | $ | 121 | Discounted cash flow | Expected call date | 3.3 - 5.3 years (4.3 years) | |||||||||||||||||||||||||||||||||||
Credit spread adjustment | 0.02% - 0.48% (0.17%) | |||||||||||||||||||||||||||||||||||||||
$ | 72 | Market approach | Private offering price | $42.39 - $102.32 ($100.11) | ||||||||||||||||||||||||||||||||||||
Equity securities | $ | 34 | Market approach | Private offering price | $4.54 - $3,842.00 per share | |||||||||||||||||||||||||||||||||||
($571.17 per share) | ||||||||||||||||||||||||||||||||||||||||
Life settlement contracts | $ | 100 | Discounted cash flow | Discount rate risk premium | 9% | |||||||||||||||||||||||||||||||||||
Mortality assumption | 69% - 883% (208.9%) | |||||||||||||||||||||||||||||||||||||||
Carrying amount and estimated fair value of financial instrument assets and liabilities not measured at fair value | ' | |||||||||||||||||||||||||||||||||||||||
The carrying amount and estimated fair value of the Company's financial instrument assets and liabilities which are not measured at fair value on the Consolidated Balance Sheets are listed in the tables below. | ||||||||||||||||||||||||||||||||||||||||
December 31, 2013 | Carrying | Estimated Fair Value | ||||||||||||||||||||||||||||||||||||||
(In millions) | Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||
Financial assets | ||||||||||||||||||||||||||||||||||||||||
Notes receivable for the issuance of common stock | $ | 23 | $ | — | $ | — | $ | 23 | $ | 23 | ||||||||||||||||||||||||||||||
Mortgage loans | 508 | — | — | 515 | 515 | |||||||||||||||||||||||||||||||||||
Financial liabilities | ||||||||||||||||||||||||||||||||||||||||
Premium deposits and annuity contracts | $ | 57 | $ | — | $ | — | $ | 58 | $ | 58 | ||||||||||||||||||||||||||||||
Short term debt | 549 | — | 575 | — | 575 | |||||||||||||||||||||||||||||||||||
Long term debt | 2,011 | — | 2,328 | — | 2,328 | |||||||||||||||||||||||||||||||||||
31-Dec-12 | Carrying | Estimated Fair Value | ||||||||||||||||||||||||||||||||||||||
(In millions) | Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||
Financial assets | ||||||||||||||||||||||||||||||||||||||||
Notes receivable for the issuance of common stock | $ | 21 | $ | — | $ | — | $ | 21 | $ | 21 | ||||||||||||||||||||||||||||||
Mortgage loans | 401 | — | — | 418 | 418 | |||||||||||||||||||||||||||||||||||
Financial liabilities | ||||||||||||||||||||||||||||||||||||||||
Premium deposits and annuity contracts | $ | 100 | $ | — | $ | — | $ | 104 | $ | 104 | ||||||||||||||||||||||||||||||
Short term debt | 13 | — | 13 | — | 13 | |||||||||||||||||||||||||||||||||||
Long term debt | 2,557 | — | 3,016 | — | 3,016 | |||||||||||||||||||||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Reconcilliation between the Company's federal income tax (expense) benefit at statutory rates and the recorded income tax (expense) benefit | ' | |||||||||||
Tax Reconciliation | ||||||||||||
Years ended December 31 | ||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||
Income tax expense at statutory rates | $ | (460 | ) | $ | (305 | ) | $ | (305 | ) | |||
Tax benefit from tax exempt income | 97 | 84 | 74 | |||||||||
Foreign taxes and credits | (1 | ) | (13 | ) | (3 | ) | ||||||
Taxes related to domestic affiliate | — | — | (21 | ) | ||||||||
Prior year tax adjustment | — | — | 20 | |||||||||
Other tax expense | (12 | ) | (10 | ) | (7 | ) | ||||||
Income tax expense | $ | (376 | ) | $ | (244 | ) | $ | (242 | ) | |||
Current and deferred components of the Company's income tax (expense) benefit | ' | |||||||||||
Current and Deferred Taxes | ||||||||||||
Years ended December 31 | ||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||
Current tax expense | $ | (299 | ) | $ | (97 | ) | $ | (54 | ) | |||
Deferred tax expense | (77 | ) | (147 | ) | (188 | ) | ||||||
Total income tax expense | $ | (376 | ) | $ | (244 | ) | $ | (242 | ) | |||
Significant components of the Company's deferred tax assets and liabilities | ' | |||||||||||
Components of Net Deferred Tax Asset | ||||||||||||
31-Dec | ||||||||||||
(In millions) | 2013 | 2012 | ||||||||||
Deferred Tax Assets: | ||||||||||||
Insurance reserves: | ||||||||||||
Property and casualty claim and claim adjustment expense reserves | $ | 289 | $ | 352 | ||||||||
Unearned premium reserves | 178 | 162 | ||||||||||
Receivables | 50 | 60 | ||||||||||
Employee benefits | 187 | 384 | ||||||||||
Life settlement contracts | 46 | 45 | ||||||||||
Deferred retroactive reinsurance benefit | 66 | — | ||||||||||
Other assets | 149 | 160 | ||||||||||
Gross deferred tax assets | 965 | 1,163 | ||||||||||
Deferred Tax Liabilities: | ||||||||||||
Investment valuation differences | 68 | 38 | ||||||||||
Deferred acquisition costs | 232 | 238 | ||||||||||
Net unrealized gains | 383 | 737 | ||||||||||
Other liabilities | 62 | 57 | ||||||||||
Gross deferred tax liabilities | 745 | 1,070 | ||||||||||
Net deferred tax asset | $ | 220 | $ | 93 | ||||||||
Claim_and_Claim_Adjustment_Exp1
Claim and Claim Adjustment Expense Reserves (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Claim and Claim Adjustment Expense Reserves [Abstract] | ' | |||||||||||||||||||||||
Reconciliation of claim and claim adjustment expense reserves | ' | |||||||||||||||||||||||
Reconciliation of Claim and Claim Adjustment Expense Reserves | ||||||||||||||||||||||||
As of and for the years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||||||||||||||
Reserves, beginning of year: | ||||||||||||||||||||||||
Gross | $ | 24,763 | $ | 24,303 | $ | 25,496 | ||||||||||||||||||
Ceded | 5,126 | 5,020 | 6,122 | |||||||||||||||||||||
Net reserves, beginning of year | 19,637 | 19,283 | 19,374 | |||||||||||||||||||||
Change in net reserves due to acquisition (disposition) of subsidiaries | — | 291 | (277 | ) | ||||||||||||||||||||
Net incurred claim and claim adjustment expenses: | ||||||||||||||||||||||||
Provision for insured events of current year | 5,114 | 5,273 | 4,904 | |||||||||||||||||||||
Decrease in provision for insured events of prior years | (115 | ) | (182 | ) | (429 | ) | ||||||||||||||||||
Amortization of discount | 154 | 145 | 135 | |||||||||||||||||||||
Total net incurred (a) | 5,153 | 5,236 | 4,610 | |||||||||||||||||||||
Net payments attributable to: | ||||||||||||||||||||||||
Current year events | (981 | ) | (988 | ) | (1,029 | ) | ||||||||||||||||||
Prior year events | (4,588 | ) | (4,280 | ) | (3,473 | ) | ||||||||||||||||||
Total net payments | (5,569 | ) | (5,268 | ) | (4,502 | ) | ||||||||||||||||||
Foreign currency translation adjustment and other | (104 | ) | 95 | 78 | ||||||||||||||||||||
Net reserves, end of year | 19,117 | 19,637 | 19,283 | |||||||||||||||||||||
Ceded reserves, end of year | 4,972 | 5,126 | 5,020 | |||||||||||||||||||||
Gross reserves, end of year | $ | 24,089 | $ | 24,763 | $ | 24,303 | ||||||||||||||||||
(a) | Total net incurred above does not agree to Insurance claims and policyholders' benefits as reflected on the Consolidated Statements of Operations due to amounts related to retroactive reinsurance deferred gain accounting, uncollectible reinsurance and loss deductible receivables, and benefit expenses related to future policy benefits and policyholders' funds, which are not reflected in the table above. | |||||||||||||||||||||||
Net prior year claim and claim adjustment expense reserve development | ' | |||||||||||||||||||||||
Reserve Development | ||||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||||||||||||||
Property and casualty reserve development | $ | (115 | ) | $ | (180 | ) | $ | (429 | ) | |||||||||||||||
Life reserve development in life company | — | (2 | ) | — | ||||||||||||||||||||
Total | $ | (115 | ) | $ | (182 | ) | $ | (429 | ) | |||||||||||||||
Gross and net carried claim and claim adjustment expense reserves | ' | |||||||||||||||||||||||
Gross and Net Carried Claim and Claim Adjustment Expense Reserves | ||||||||||||||||||||||||
December 31, 2013 | CNA Specialty | CNA Commercial | Hardy | Life & | Corporate | Total | ||||||||||||||||||
(In millions) | Group Non-Core | & Other Non-Core | ||||||||||||||||||||||
Gross Case Reserves | $ | 2,270 | $ | 5,829 | $ | 275 | $ | 2,748 | $ | 1,140 | $ | 12,262 | ||||||||||||
Gross IBNR Reserves | 4,419 | 4,820 | 111 | 310 | 2,167 | 11,827 | ||||||||||||||||||
Total Gross Carried Claim and Claim Adjustment Expense Reserves | $ | 6,689 | $ | 10,649 | $ | 386 | $ | 3,058 | $ | 3,307 | $ | 24,089 | ||||||||||||
Net Case Reserves | $ | 2,024 | $ | 5,358 | $ | 159 | $ | 2,352 | $ | 283 | $ | 10,176 | ||||||||||||
Net IBNR Reserves | 4,142 | 4,269 | 75 | 271 | 184 | 8,941 | ||||||||||||||||||
Total Net Carried Claim and Claim Adjustment Expense Reserves | $ | 6,166 | $ | 9,627 | $ | 234 | $ | 2,623 | $ | 467 | $ | 19,117 | ||||||||||||
December 31, 2012 | CNA Specialty | CNA Commercial | Hardy | Life & | Corporate | Total | ||||||||||||||||||
(In millions) | Group Non-Core | & Other Non-Core | ||||||||||||||||||||||
Gross Case Reserves | $ | 2,292 | $ | 6,146 | $ | 333 | $ | 2,690 | $ | 1,207 | $ | 12,668 | ||||||||||||
Gross IBNR Reserves | 4,456 | 5,180 | 188 | 316 | 1,955 | 12,095 | ||||||||||||||||||
Total Gross Carried Claim and Claim Adjustment Expense Reserves | $ | 6,748 | $ | 11,326 | $ | 521 | $ | 3,006 | $ | 3,162 | $ | 24,763 | ||||||||||||
Net Case Reserves | $ | 2,008 | $ | 5,611 | $ | 192 | $ | 2,253 | $ | 292 | $ | 10,356 | ||||||||||||
Net IBNR Reserves | 4,104 | 4,600 | 82 | 275 | 220 | 9,281 | ||||||||||||||||||
Total Net Carried Claim and Claim Adjustment Expense Reserves | $ | 6,112 | $ | 10,211 | $ | 274 | $ | 2,528 | $ | 512 | $ | 19,637 | ||||||||||||
Net prior year development | ' | |||||||||||||||||||||||
Net Prior Year Development | ||||||||||||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||||||
(In millions) | CNA | CNA Commercial | Hardy | Corporate | Total | |||||||||||||||||||
Specialty | & Other | |||||||||||||||||||||||
Non-Core | ||||||||||||||||||||||||
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development | $ | (230 | ) | $ | 104 | $ | 14 | $ | (6 | ) | $ | (118 | ) | |||||||||||
Pretax (favorable) unfavorable premium development | (17 | ) | (9 | ) | (17 | ) | 1 | (42 | ) | |||||||||||||||
Total pretax (favorable) unfavorable net prior year development | $ | (247 | ) | $ | 95 | $ | (3 | ) | $ | (5 | ) | $ | (160 | ) | ||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||||||
(In millions) | CNA | CNA Commercial | Hardy | Corporate | Total | |||||||||||||||||||
Specialty | & Other | |||||||||||||||||||||||
Non-Core | ||||||||||||||||||||||||
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development | $ | (135 | ) | $ | (46 | ) | $ | (11 | ) | $ | (13 | ) | $ | (205 | ) | |||||||||
Pretax (favorable) unfavorable premium development | (15 | ) | (35 | ) | 3 | 1 | (46 | ) | ||||||||||||||||
Total pretax (favorable) unfavorable net prior year development | $ | (150 | ) | $ | (81 | ) | $ | (8 | ) | $ | (12 | ) | $ | (251 | ) | |||||||||
Year ended December 31, 2011 | ||||||||||||||||||||||||
(In millions) | CNA | CNA Commercial | Corporate | Total | ||||||||||||||||||||
Specialty | & Other | |||||||||||||||||||||||
Non-Core | ||||||||||||||||||||||||
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development | $ | (217 | ) | $ | (204 | ) | $ | (2 | ) | $ | (423 | ) | ||||||||||||
Pretax (favorable) unfavorable premium development | (28 | ) | 21 | (1 | ) | (8 | ) | |||||||||||||||||
Total pretax (favorable) unfavorable net prior year development | $ | (245 | ) | $ | (183 | ) | $ | (3 | ) | $ | (431 | ) | ||||||||||||
Net prior year claim and allocated claim adjustment expense reserve development for CNA Specialty segment | ' | |||||||||||||||||||||||
The following table provides further detail of the net prior year claim and allocated claim adjustment expense reserve development (development) recorded for the CNA Specialty segment for the years ended December 31, 2013, 2012 and 2011. | ||||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||||||||||||||
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development: | ||||||||||||||||||||||||
Medical Professional Liability | $ | (35 | ) | $ | (32 | ) | $ | (92 | ) | |||||||||||||||
Other Professional Liability and Management Liability | (101 | ) | (22 | ) | (78 | ) | ||||||||||||||||||
Surety | (74 | ) | (63 | ) | (47 | ) | ||||||||||||||||||
Warranty | (3 | ) | (5 | ) | (13 | ) | ||||||||||||||||||
Other | (17 | ) | (13 | ) | 13 | |||||||||||||||||||
Total pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development | $ | (230 | ) | $ | (135 | ) | $ | (217 | ) | |||||||||||||||
Net prior year claim and allocated claim adjustment expense reserve development for CNA Commercial segment | ' | |||||||||||||||||||||||
The following table provides further detail of the development recorded for the CNA Commercial segment for the years ended December 31, 2013, 2012 and 2011. | ||||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||||||||||||||
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development: | ||||||||||||||||||||||||
Commercial Auto | $ | 15 | $ | 27 | $ | (98 | ) | |||||||||||||||||
General Liability | 59 | (64 | ) | (39 | ) | |||||||||||||||||||
Workers' Compensation | 92 | 15 | 36 | |||||||||||||||||||||
Property and Other | (62 | ) | (24 | ) | (103 | ) | ||||||||||||||||||
Total pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development | $ | 104 | $ | (46 | ) | $ | (204 | ) | ||||||||||||||||
Net prior year claim and allocated claim adjustment expense reserve development for Hardy segment | ' | |||||||||||||||||||||||
The following table provides further detail of the development recorded for the Hardy segment for the years ended December 31, 2013 and 2012. | ||||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2013 | 2012 | ||||||||||||||||||||||
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development: | ||||||||||||||||||||||||
Marine and Aviation | $ | 2 | $ | — | ||||||||||||||||||||
Non-Marine Property | 12 | (7 | ) | |||||||||||||||||||||
Property Treaty | (5 | ) | (3 | ) | ||||||||||||||||||||
Specialty | (6 | ) | (1 | ) | ||||||||||||||||||||
Commutation | 11 | — | ||||||||||||||||||||||
Total pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development | $ | 14 | $ | (11 | ) | |||||||||||||||||||
Impact of loss portfolio transfer on the consolidated statement of operations | ' | |||||||||||||||||||||||
The following table displays the impact of the Loss Portfolio Transfer on the Consolidated Statements of Operations. | ||||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||||||||||||||
Net A&EP adverse development before consideration of LPT | $ | 363 | $ | 261 | $ | 84 | ||||||||||||||||||
Provision for uncollectible third-party reinsurance on A&EP | 140 | — | — | |||||||||||||||||||||
Additional amounts ceded under LPT | 503 | 261 | 84 | |||||||||||||||||||||
Retroactive reinsurance benefit recognized | (314 | ) | (261 | ) | (84 | ) | ||||||||||||||||||
Pretax impact of unrecognized deferred retroactive reinsurance benefit | $ | 189 | $ | — | $ | — | ||||||||||||||||||
Reinsurance_Tables
Reinsurance (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
Reinsurance Disclosures [Abstract] | ' | ||||||||||||||||||
Components of Reinsurance Receivables | ' | ||||||||||||||||||
The following table summarizes the amounts receivable from reinsurers at December 31, 2013 and 2012. | |||||||||||||||||||
Components of Reinsurance Receivables | |||||||||||||||||||
31-Dec | |||||||||||||||||||
(In millions) | 2013 | 2012 | |||||||||||||||||
Reinsurance receivables related to insurance reserves: | |||||||||||||||||||
Ceded claim and claim adjustment expenses | $ | 4,972 | $ | 5,126 | |||||||||||||||
Ceded future policy benefits | 733 | 759 | |||||||||||||||||
Ceded policyholders' funds | 35 | 35 | |||||||||||||||||
Reinsurance receivables related to paid losses | 348 | 311 | |||||||||||||||||
Reinsurance receivables | 6,088 | 6,231 | |||||||||||||||||
Allowance for uncollectible reinsurance | (71 | ) | (73 | ) | |||||||||||||||
Reinsurance receivables, net of allowance for uncollectible reinsurance | $ | 6,017 | $ | 6,158 | |||||||||||||||
Components of Earned and Written Premiums | ' | ||||||||||||||||||
The effects of reinsurance on earned premiums and written premiums for the years ended December 31, 2013, 2012 and 2011 are shown in the following tables. | |||||||||||||||||||
Components of Earned Premiums | |||||||||||||||||||
(In millions) | Direct | Assumed | Ceded | Net | Assumed/ | ||||||||||||||
Net % | |||||||||||||||||||
2013 Earned Premiums | |||||||||||||||||||
Property and casualty | $ | 9,063 | $ | 258 | $ | 2,609 | $ | 6,712 | 3.8 | % | |||||||||
Accident and health | 512 | 48 | 1 | 559 | 8.6 | % | |||||||||||||
Life | 49 | — | 49 | — | — | ||||||||||||||
Total earned premiums | $ | 9,624 | $ | 306 | $ | 2,659 | $ | 7,271 | 4.2 | % | |||||||||
2012 Earned Premiums | |||||||||||||||||||
Property and casualty | $ | 8,354 | $ | 197 | $ | 2,229 | $ | 6,322 | 3.1 | % | |||||||||
Accident and health | 514 | 47 | 1 | 560 | 8.4 | % | |||||||||||||
Life | 51 | — | 51 | — | — | ||||||||||||||
Total earned premiums | $ | 8,919 | $ | 244 | $ | 2,281 | $ | 6,882 | 3.5 | % | |||||||||
2011 Earned Premiums | |||||||||||||||||||
Property and casualty | $ | 7,858 | $ | 95 | $ | 1,919 | $ | 6,034 | 1.6 | % | |||||||||
Accident and health | 521 | 50 | 2 | 569 | 8.8 | % | |||||||||||||
Life | 55 | — | 55 | — | — | ||||||||||||||
Total earned premiums | $ | 8,434 | $ | 145 | $ | 1,976 | $ | 6,603 | 2.2 | % | |||||||||
Components of Written Premiums | |||||||||||||||||||
(In millions) | Direct | Assumed | Ceded | Net | Assumed/ | ||||||||||||||
Net % | |||||||||||||||||||
2013 Written Premiums | |||||||||||||||||||
Property and casualty | $ | 9,103 | $ | 249 | $ | 2,556 | $ | 6,796 | 3.7 | % | |||||||||
Accident and health | 506 | 47 | 1 | 552 | 8.5 | % | |||||||||||||
Life | 49 | — | 49 | — | — | ||||||||||||||
Total written premiums | $ | 9,658 | $ | 296 | $ | 2,606 | $ | 7,348 | 4 | % | |||||||||
2012 Written Premiums | |||||||||||||||||||
Property and casualty | $ | 8,467 | $ | 169 | $ | 2,225 | $ | 6,411 | 2.6 | % | |||||||||
Accident and health | 507 | 47 | 1 | 553 | 8.5 | % | |||||||||||||
Life | 51 | — | 51 | — | — | ||||||||||||||
Total written premiums | $ | 9,025 | $ | 216 | $ | 2,277 | $ | 6,964 | 3.1 | % | |||||||||
2011 Written Premiums | |||||||||||||||||||
Property and casualty | $ | 7,976 | $ | 102 | $ | 1,857 | $ | 6,221 | 1.6 | % | |||||||||
Accident and health | 529 | 50 | 2 | 577 | 8.7 | % | |||||||||||||
Life | 55 | — | 55 | — | — | ||||||||||||||
Total written premiums | $ | 8,560 | $ | 152 | $ | 1,914 | $ | 6,798 | 2.2 | % | |||||||||
Components of Life Insurance Inforce | ' | ||||||||||||||||||
Components of Life Insurance Inforce | |||||||||||||||||||
(In millions) | Direct | Assumed | Ceded | Net | |||||||||||||||
2013 | $ | 5,127 | $ | — | $ | 5,118 | $ | 9 | |||||||||||
2012 | 5,713 | — | 5,702 | 11 | |||||||||||||||
2011 | 6,528 | — | 6,515 | 13 | |||||||||||||||
Debt_Tables
Debt (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Schedule of debt instruments | ' | |||||||
Debt | ||||||||
31-Dec | ||||||||
(In millions) | 2013 | 2012 | ||||||
Short term debt: | ||||||||
Senior notes of CNAF, 5.850%, face amount of $549, due December 15, 2014 | $ | 549 | $ | — | ||||
Other debt | — | 13 | ||||||
Total short term debt | 549 | 13 | ||||||
Long term debt: | ||||||||
Senior notes of CNAF: | ||||||||
5.850%, face amount of $549, due December 15, 2014 | — | 548 | ||||||
6.500%, face amount of $350, due August 15, 2016 | 349 | 348 | ||||||
6.950%, face amount of $150, due January 15, 2018 | 149 | 149 | ||||||
7.350%, face amount of $350, due November 15, 2019 | 348 | 348 | ||||||
5.875%, face amount of $500, due August 15, 2020 | 497 | 496 | ||||||
5.750%, face amount of $400, due August 15, 2021 | 397 | 397 | ||||||
Debenture of CNAF, 7.250%, face amount of $243, due November 15, 2023 | 241 | 241 | ||||||
Subordinated variable rate debt of Hardy, face amount of $30, due September 15, 2036 | 30 | 30 | ||||||
Total long term debt | 2,011 | 2,557 | ||||||
Total debt | $ | 2,560 | $ | 2,570 | ||||
Maturity of debt | ' | |||||||
Maturity of Debt | ||||||||
(In millions) | ||||||||
2014 | $ | 549 | ||||||
2015 | — | |||||||
2016 | 350 | |||||||
2017 | — | |||||||
2018 | 150 | |||||||
Thereafter | 1,523 | |||||||
Less discount | (12 | ) | ||||||
Total | $ | 2,560 | ||||||
Benefit_Plans_Tables
Benefit Plans (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
Funded status | ' | |||||||||||||||||||||||
The following table provides a reconciliation of benefit obligations and plan assets for the years ended December 31, 2013 and 2012. | ||||||||||||||||||||||||
Funded Status | ||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Benefit obligation at January 1 | $ | 3,271 | $ | 3,003 | $ | 47 | $ | 49 | ||||||||||||||||
Changes in benefit obligation: | ||||||||||||||||||||||||
Service cost | 12 | 12 | 1 | — | ||||||||||||||||||||
Interest cost | 121 | 135 | 1 | 2 | ||||||||||||||||||||
Participants' contributions | — | — | 5 | 5 | ||||||||||||||||||||
Actuarial (gain) loss | (289 | ) | 266 | (3 | ) | 3 | ||||||||||||||||||
Benefits paid | (165 | ) | (164 | ) | (12 | ) | (12 | ) | ||||||||||||||||
Settlements | (8 | ) | — | — | — | |||||||||||||||||||
Foreign currency translation and other | 1 | 19 | 1 | — | ||||||||||||||||||||
Benefit obligation at December 31 | 2,943 | 3,271 | 40 | 47 | ||||||||||||||||||||
Fair value of plan assets at January 1 | 2,425 | 2,212 | — | — | ||||||||||||||||||||
Change in plan assets: | ||||||||||||||||||||||||
Actual return on plan assets | 311 | 245 | — | — | ||||||||||||||||||||
Company contributions | 92 | 115 | 7 | 7 | ||||||||||||||||||||
Participants' contributions | — | — | 5 | 5 | ||||||||||||||||||||
Benefits paid | (165 | ) | (164 | ) | (12 | ) | (12 | ) | ||||||||||||||||
Settlements | (8 | ) | — | — | — | |||||||||||||||||||
Foreign currency translation and other | 1 | 17 | — | — | ||||||||||||||||||||
Fair value of plan assets at December 31 | 2,656 | 2,425 | — | — | ||||||||||||||||||||
Funded status | $ | (287 | ) | $ | (846 | ) | $ | (40 | ) | $ | (47 | ) | ||||||||||||
Amounts recognized on the Consolidated Balance Sheets at December 31: | ||||||||||||||||||||||||
Other assets | $ | 9 | $ | — | $ | — | $ | — | ||||||||||||||||
Other liabilities | (296 | ) | (846 | ) | (40 | ) | (47 | ) | ||||||||||||||||
Net amount recognized | $ | (287 | ) | $ | (846 | ) | $ | (40 | ) | $ | (47 | ) | ||||||||||||
Amounts recognized in Accumulated other comprehensive income, not yet recognized in net periodic cost (benefit): | ||||||||||||||||||||||||
Prior service credit | $ | — | $ | — | $ | (98 | ) | $ | (116 | ) | ||||||||||||||
Net actuarial loss | 745 | 1,213 | 8 | 11 | ||||||||||||||||||||
Net amount recognized | $ | 745 | $ | 1,213 | $ | (90 | ) | $ | (105 | ) | ||||||||||||||
Components of net periodic cost (benefit) | ' | |||||||||||||||||||||||
Net Periodic Cost (Benefit) | ||||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||||||||||||||
Pension cost (benefit) | ||||||||||||||||||||||||
Service cost | $ | 12 | $ | 12 | $ | 13 | ||||||||||||||||||
Interest cost on projected benefit obligation | 121 | 135 | 146 | |||||||||||||||||||||
Expected return on plan assets | (181 | ) | (171 | ) | (172 | ) | ||||||||||||||||||
Amortization of net actuarial (gain) loss | 47 | 39 | 25 | |||||||||||||||||||||
Settlement loss | 3 | — | — | |||||||||||||||||||||
Net periodic pension cost (benefit) | $ | 2 | $ | 15 | $ | 12 | ||||||||||||||||||
Postretirement cost (benefit) | ||||||||||||||||||||||||
Service cost | $ | 1 | $ | — | $ | 1 | ||||||||||||||||||
Interest cost on projected benefit obligation | 1 | 2 | 3 | |||||||||||||||||||||
Amortization of prior service credit | (18 | ) | (18 | ) | (19 | ) | ||||||||||||||||||
Amortization of net actuarial (gain) loss | 2 | 1 | — | |||||||||||||||||||||
Net periodic postretirement cost (benefit) | $ | (14 | ) | $ | (15 | ) | $ | (15 | ) | |||||||||||||||
Schedule of amounts recognized in Other comprehensive income | ' | |||||||||||||||||||||||
The amounts recognized in Other comprehensive income are presented in the following table. | ||||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||||||||||||||
Pension and postretirement benefits | ||||||||||||||||||||||||
Amounts arising during the period | $ | 422 | $ | (195 | ) | $ | (325 | ) | ||||||||||||||||
Reclassification adjustment relating to prior service credit | (18 | ) | (18 | ) | (19 | ) | ||||||||||||||||||
Reclassification adjustment relating to actuarial loss | 49 | 40 | 25 | |||||||||||||||||||||
Total increase (decrease) in Other comprehensive income | $ | 453 | $ | (173 | ) | $ | (319 | ) | ||||||||||||||||
Schedule of estimated amounts to be recognized from Accumulated other comprehensive income into net periodic cost (benefit) during next fiscal year | ' | |||||||||||||||||||||||
The table below presents the estimated amounts to be recognized from Accumulated other comprehensive income into net periodic cost (benefit) during 2014. | ||||||||||||||||||||||||
(In millions) | Pension | Postretirement Benefits | ||||||||||||||||||||||
Benefits | ||||||||||||||||||||||||
Amortization of prior service credit | $ | — | $ | (18 | ) | |||||||||||||||||||
Amortization of net actuarial loss | 25 | — | ||||||||||||||||||||||
Total estimated amounts to be recognized | $ | 25 | $ | (18 | ) | |||||||||||||||||||
Actuarial assumptions for benefit obligations and for net cost or benefit | ' | |||||||||||||||||||||||
Actuarial assumptions used for the CNA Retirement Plan and CNA Health and Group Benefits Program to determine benefit obligations are set forth in the following table. | ||||||||||||||||||||||||
Actuarial Assumptions for Benefit Obligations | ||||||||||||||||||||||||
31-Dec | 2013 | 2012 | ||||||||||||||||||||||
Pension benefits | ||||||||||||||||||||||||
Discount rate | 4.65 | % | 3.8 | % | ||||||||||||||||||||
Expected long term rate of return | 7.5 | 7.75 | ||||||||||||||||||||||
Rate of compensation increases | 3.99 | 4.066 | ||||||||||||||||||||||
Postretirement benefits | ||||||||||||||||||||||||
Discount rate | 3.6 | % | 2.8 | % | ||||||||||||||||||||
Actuarial assumptions used for the CNA Retirement Plan and CNA Health and Group Benefits Program to determine net cost or benefit are set forth in the following table. | ||||||||||||||||||||||||
Actuarial Assumptions for Net Cost or Benefit | ||||||||||||||||||||||||
Years ended December 31 | 2013 | 2012 | 2011 | |||||||||||||||||||||
Pension benefits | ||||||||||||||||||||||||
Discount rate | 3.8 | % | 4.6 | % | 5.375 | % | ||||||||||||||||||
Expected long term rate of return | 7.75 | 8 | 8 | |||||||||||||||||||||
Rate of compensation increases | 4.066 | 4.125 | 5.03 | |||||||||||||||||||||
Postretirement benefits | ||||||||||||||||||||||||
Discount rate | 2.8 | % | 3.75 | % | 4.375 | % | ||||||||||||||||||
Fair value of plan assets measured on a recurring basis | ' | |||||||||||||||||||||||
Pension plan assets measured at fair value on a recurring basis are summarized below. | ||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | Total Assets | ||||||||||||||||||||
at Fair Value | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||
Corporate and other bonds | $ | — | $ | 505 | $ | 15 | $ | 520 | ||||||||||||||||
States, municipalities and political subdivisions | — | 73 | — | 73 | ||||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||
Residential mortgage-backed | — | 130 | — | 130 | ||||||||||||||||||||
Commercial mortgage-backed | — | 106 | — | 106 | ||||||||||||||||||||
Other asset-backed | — | 12 | — | 12 | ||||||||||||||||||||
Total asset-backed | — | 248 | — | 248 | ||||||||||||||||||||
Total fixed maturity securities | — | 826 | 15 | 841 | ||||||||||||||||||||
Equity securities | 480 | 117 | 8 | 605 | ||||||||||||||||||||
Derivative financial instruments | 2 | — | — | 2 | ||||||||||||||||||||
Short term investments | 45 | 49 | — | 94 | ||||||||||||||||||||
Limited partnerships: | ||||||||||||||||||||||||
Hedge funds | — | 647 | 322 | 969 | ||||||||||||||||||||
Private equity | — | — | 114 | 114 | ||||||||||||||||||||
Total limited partnerships | — | 647 | 436 | 1,083 | ||||||||||||||||||||
Other assets | — | 31 | — | 31 | ||||||||||||||||||||
Total assets | $ | 527 | $ | 1,670 | $ | 459 | $ | 2,656 | ||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | Total Assets | ||||||||||||||||||||
at Fair Value | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||
Corporate and other bonds | $ | — | $ | 436 | $ | 11 | $ | 447 | ||||||||||||||||
States, municipalities and political subdivisions | — | 91 | — | 91 | ||||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||
Residential mortgage-backed | — | 161 | — | 161 | ||||||||||||||||||||
Commercial mortgage-backed | — | 105 | — | 105 | ||||||||||||||||||||
Total asset-backed | — | 266 | — | 266 | ||||||||||||||||||||
Total fixed maturity securities | — | 793 | 11 | 804 | ||||||||||||||||||||
Equity securities | 386 | 102 | 5 | 493 | ||||||||||||||||||||
Derivative financial instruments | 1 | — | — | 1 | ||||||||||||||||||||
Short term investments | 37 | 82 | — | 119 | ||||||||||||||||||||
Limited partnerships: | ||||||||||||||||||||||||
Hedge funds | — | 537 | 359 | 896 | ||||||||||||||||||||
Private equity | — | — | 62 | 62 | ||||||||||||||||||||
Total limited partnerships | — | 537 | 421 | 958 | ||||||||||||||||||||
Other assets | — | 40 | — | 40 | ||||||||||||||||||||
Investment contracts with insurance company | — | — | 10 | 10 | ||||||||||||||||||||
Total assets | $ | 424 | $ | 1,554 | $ | 447 | $ | 2,425 | ||||||||||||||||
Reconciliation of level 3 plan assets | ' | |||||||||||||||||||||||
The tables below present a reconciliation for all pension plan assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2013 and 2012. | ||||||||||||||||||||||||
Level 3 | Balance at January 1, 2013 | Actual return on assets still held at December 31, 2013 | Actual return on assets sold during the year ended December 31, 2013 | Purchases, sales, and settlements | Net transfers into (out of) Level 3 | Balance at December 31, 2013 | ||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||
Corporate and other bonds | $ | 11 | $ | (1 | ) | $ | — | $ | 5 | $ | — | $ | 15 | |||||||||||
Equity securities | 5 | 3 | — | — | — | 8 | ||||||||||||||||||
Limited partnerships: | ||||||||||||||||||||||||
Hedge funds | 359 | 56 | — | (77 | ) | (16 | ) | 322 | ||||||||||||||||
Private equity | 62 | — | — | 52 | — | 114 | ||||||||||||||||||
Total limited partnerships | 421 | 56 | — | (25 | ) | (16 | ) | 436 | ||||||||||||||||
Investment contracts with insurance company | 10 | — | — | (10 | ) | — | — | |||||||||||||||||
Total | $ | 447 | $ | 58 | $ | — | $ | (30 | ) | $ | (16 | ) | $ | 459 | ||||||||||
Level 3 | Balance at January 1, 2012 | Actual return on assets still held at December 31, 2012 | Actual return on assets sold during the year ended December 31, 2012 | Purchases, sales, and settlements | Net transfers into (out of) Level 3 | Balance at December 31, 2012 | ||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||
Corporate and other bonds | $ | 10 | $ | 1 | $ | — | $ | — | $ | — | $ | 11 | ||||||||||||
Equity securities | 5 | — | — | — | — | 5 | ||||||||||||||||||
Limited partnerships: | ||||||||||||||||||||||||
Hedge funds | 330 | 41 | 3 | (15 | ) | — | 359 | |||||||||||||||||
Private equity | 65 | 8 | — | (11 | ) | — | 62 | |||||||||||||||||
Total limited partnerships | 395 | 49 | 3 | (26 | ) | — | 421 | |||||||||||||||||
Investment contracts with insurance company | 10 | — | — | — | — | 10 | ||||||||||||||||||
Total | $ | 420 | $ | 50 | $ | 3 | $ | (26 | ) | $ | — | $ | 447 | |||||||||||
Estimated future minimum benefit payments to participants | ' | |||||||||||||||||||||||
Estimated Future Minimum Benefit Payments to Participants | ||||||||||||||||||||||||
(In millions) | Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||
2014 | $ | 189 | $ | 5 | ||||||||||||||||||||
2015 | 191 | 4 | ||||||||||||||||||||||
2016 | 194 | 5 | ||||||||||||||||||||||
2017 | 199 | 4 | ||||||||||||||||||||||
2018 | 203 | 4 | ||||||||||||||||||||||
2019-2023 | 1,013 | 14 | ||||||||||||||||||||||
Significant assumptions used to estimate fair value of stock options and SARS | ' | |||||||||||||||||||||||
The following table presents the significant assumptions used to estimate the fair value of granted stock options and SARs for the years ended December 31, 2012 and 2011. | ||||||||||||||||||||||||
Years ended December 31 | 2012 | 2011 | ||||||||||||||||||||||
Weighted average expected life of the securities granted (in years) | 5.68 | 5.61 | ||||||||||||||||||||||
Estimate of the underlying common stock's volatility | 40.39 | % | 39.88 | % | ||||||||||||||||||||
Expected dividend yield | 2.1 | % | 1.5 | % | ||||||||||||||||||||
Risk free interest rate | 1 | % | 2.2 | % | ||||||||||||||||||||
Stock option and SARS activity | ' | |||||||||||||||||||||||
The following table presents activity for stock options and SARs under the Plan in 2013. | ||||||||||||||||||||||||
Number of Awards | Weighted-Average Exercise Price per Award | Aggregate Intrinsic Value | Weighted-Average Remaining Contractual Term (in years) | |||||||||||||||||||||
Outstanding at January 1, 2013 | 1,158,700 | $ | 25.93 | |||||||||||||||||||||
Awards granted | — | — | ||||||||||||||||||||||
Awards exercised | (117,950 | ) | 21.19 | |||||||||||||||||||||
Awards forfeited, canceled or expired | (4,100 | ) | 30.66 | |||||||||||||||||||||
Outstanding at December 31, 2013 | 1,036,650 | $ | 26.45 | $ | 17 | million | 4.16 | |||||||||||||||||
Outstanding, fully vested and expected to vest | 1,032,849 | $ | 26.45 | $ | 17 | million | 4.15 | |||||||||||||||||
Outstanding, exercisable | 936,650 | $ | 26.42 | $ | 15 | million | 3.87 | |||||||||||||||||
Weighted-average grant date fair value for awards granted, total intrinsic value for awards exercised and total fair value for awards vested | ' | |||||||||||||||||||||||
The following table presents weighted-average grant date fair value for awards granted, total intrinsic value for awards exercised and total fair value for awards vested for the years ended December 31, 2013, 2012 and 2011. | ||||||||||||||||||||||||
Years ended December 31 | 2013 | 2012 | 2011 | |||||||||||||||||||||
Weighted-average grant date fair value | $ | 8.81 | $ | 9.38 | ||||||||||||||||||||
Total intrinsic value of awards exercised | $ | 1,495 | thousand | $ | 548 | thousand | $ | 481 | thousand | |||||||||||||||
Fair value of awards vested | $ | 1 | million | $ | 1 | million | $ | 2 | million | |||||||||||||||
Restricted shares, performance-based restricted stock units and performance share unit activity | ' | |||||||||||||||||||||||
The following table presents activity for restricted shares, performance-based RSUs and performance share units under the Plan in 2013. | ||||||||||||||||||||||||
Number of Awards | Weighted-Average Grant Date Fair Value | |||||||||||||||||||||||
Balance at January 1, 2013 | 882,321 | $ | 26.15 | |||||||||||||||||||||
Awards granted | 351,364 | 31.8 | ||||||||||||||||||||||
Awards vested | (417,955 | ) | 24.04 | |||||||||||||||||||||
Awards forfeited, canceled or expired | (13,770 | ) | 28.72 | |||||||||||||||||||||
Performance-based adjustment | 45,714 | 28.39 | ||||||||||||||||||||||
Balance at December 31, 2013 | 847,674 | $ | 29.61 | |||||||||||||||||||||
Other_Intangible_Assets_Tables
Other Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Intangible Assets, Gross (Excluding Goodwill) [Abstract] | ' | |||||||||||||||||
Schedule of Other Intangible Assets | ' | |||||||||||||||||
Other intangible assets are presented in the following table. | ||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||
(In millions) | Economic Useful Life | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | |||||||||||||
Finite-lived intangible assets: | ||||||||||||||||||
Value of business acquired | 1 - 4 years | $ | 64 | $ | 63 | $ | 62 | $ | 43 | |||||||||
Trade name | 8 years | 8 | 2 | 8 | — | |||||||||||||
Distribution channel | 15 years | 13 | 1 | 13 | — | |||||||||||||
Total finite-lived intangible assets | 85 | 66 | 83 | 43 | ||||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||||||
Syndicate capacity | 58 | 57 | ||||||||||||||||
Agency force | 16 | 16 | ||||||||||||||||
Total indefinite-lived intangible assets | 74 | 73 | ||||||||||||||||
Total other intangible assets | $ | 159 | $ | 66 | $ | 156 | $ | 43 | ||||||||||
Operating_Leases_Commitments_a1
Operating Leases, Commitments and Contingencies, and Guarantees (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Operating Leases, Commitments and Contingencies, and Guarantees [Abstract] | ' | |||||||
Future minimum lease payments and sublease receipts | ' | |||||||
Future Minimum Lease Payments and Sublease Receipts | ||||||||
(In millions) | Future Minimum Lease Payments | Future Minimum Sublease Receipts | ||||||
2014 | $ | 37 | $ | 2 | ||||
2015 | 32 | — | ||||||
2016 | 29 | — | ||||||
2017 | 23 | — | ||||||
2018 | 17 | — | ||||||
Thereafter | 70 | — | ||||||
Total | $ | 208 | $ | 2 | ||||
Stockholders_Equity_and_Statut1
Stockholders' Equity and Statutory Accounting Practices (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Stockholders' Equity and Statutory Accounting Practices [Abstract] | ' | |||||||||||||||||||
Combined statutory capital and surplus and net income (loss) | ' | |||||||||||||||||||
Statutory Information | ||||||||||||||||||||
Statutory Capital and Surplus | Statutory Net Income (Loss) | |||||||||||||||||||
31-Dec | Years ended December 31 | |||||||||||||||||||
(In millions) | 2013 (b) | 2012 | 2013 (b) | 2012 | 2011 | |||||||||||||||
Combined Continental Casualty Companies (a) | $ | 11,137 | $ | 9,998 | $ | 913 | $ | 391 | $ | 954 | ||||||||||
Life company | 597 | 556 | 48 | 44 | 29 | |||||||||||||||
________________ | ||||||||||||||||||||
(a) | Represents the combined statutory surplus of CCC and its subsidiaries, including the life company. | |||||||||||||||||||
(b) | Information derived from the statutory-basis financial statements to be filed with insurance regulators. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) by Component (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) by Component | ' | |||||||||||||||||||
The table below displays the changes in Accumulated other comprehensive income (loss) by component for the year ended December 31, 2013. | ||||||||||||||||||||
Net unrealized gains (losses) on investments with OTTI losses | Net unrealized gains (losses) on other investments | Pension and postretirement benefits | Cumulative foreign currency translation adjustment | Total | ||||||||||||||||
Balance at December 31, 2012 | $ | 20 | $ | 1,371 | $ | (721 | ) | $ | 161 | $ | 831 | |||||||||
Other comprehensive income (loss) before reclassifications | 6 | (658 | ) | 275 | (11 | ) | (388 | ) | ||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) after tax of $0, $(10), $11, $0, and $1 | — | 21 | (20 | ) | — | 1 | ||||||||||||||
Other comprehensive income (loss) after tax of $(3), $364, $(158), $0, and $203 | 6 | (679 | ) | 295 | (11 | ) | (389 | ) | ||||||||||||
Balance at December 31, 2013 | $ | 26 | $ | 692 | $ | (426 | ) | $ | 150 | $ | 442 | |||||||||
The following table displays the components of AOCI included on the Consolidated Balance Sheet for the year ended December 31, 2012. | ||||||||||||||||||||
31-Dec | 2012 | |||||||||||||||||||
(In millions) | Tax | After-tax | ||||||||||||||||||
Cumulative foreign currency translation adjustment | $ | — | $ | 161 | ||||||||||||||||
Pension and postretirement benefits | 387 | (721 | ) | |||||||||||||||||
Net unrealized gains (losses) on investments with OTTI losses | (11 | ) | 20 | |||||||||||||||||
Net unrealized gains (losses) on other investments | (721 | ) | 1,371 | |||||||||||||||||
Accumulated other comprehensive income (loss) | $ | (345 | ) | $ | 831 | |||||||||||||||
Business_Segments_Tables
Business Segments (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||||||
Significant components of the Company's continuing operations and selected balance sheet items | ' | |||||||||||||||||||||||||||
Year ended December 31, 2013 | CNA | CNA | Hardy | Life & | Corporate | |||||||||||||||||||||||
Specialty | Commercial | Group | & Other | |||||||||||||||||||||||||
(In millions) | Non-Core | Non-Core | Eliminations | Total | ||||||||||||||||||||||||
Net written premiums (a) | $ | 3,091 | $ | 3,312 | $ | 396 | $ | 552 | $ | (1 | ) | $ | (2 | ) | $ | 7,348 | ||||||||||||
Operating revenues | ||||||||||||||||||||||||||||
Net earned premiums | $ | 3,004 | $ | 3,350 | $ | 361 | $ | 559 | $ | (1 | ) | $ | (2 | ) | $ | 7,271 | ||||||||||||
Net investment income | 657 | 927 | 4 | 830 | 32 | — | 2,450 | |||||||||||||||||||||
Other revenues | 257 | 96 | — | (2 | ) | 12 | (2 | ) | 361 | |||||||||||||||||||
Total operating revenues | 3,918 | 4,373 | 365 | 1,387 | 43 | (4 | ) | 10,082 | ||||||||||||||||||||
Claims, Benefits and Expenses | ||||||||||||||||||||||||||||
Net incurred claims and benefits | 1,704 | 2,475 | 162 | 1,395 | 191 | — | 5,927 | |||||||||||||||||||||
Policyholders’ dividends | 6 | 7 | — | 7 | — | — | 20 | |||||||||||||||||||||
Amortization of deferred acquisition costs | 628 | 600 | 106 | 28 | — | — | 1,362 | |||||||||||||||||||||
Other insurance related expenses | 272 | 547 | 69 | 134 | (3 | ) | (2 | ) | 1,017 | |||||||||||||||||||
Other expenses | 236 | 26 | 19 | 12 | 183 | (2 | ) | 474 | ||||||||||||||||||||
Total claims, benefits and expenses | 2,846 | 3,655 | 356 | 1,576 | 371 | (4 | ) | 8,800 | ||||||||||||||||||||
Operating income (loss) from continuing operations before income tax | 1,072 | 718 | 9 | (189 | ) | (328 | ) | — | 1,282 | |||||||||||||||||||
Income tax (expense) benefit on operating income (loss) | (365 | ) | (250 | ) | 1 | 131 | 118 | — | (365 | ) | ||||||||||||||||||
Net operating income (loss) from continuing operations attributable to CNA | 707 | 468 | 10 | (58 | ) | (210 | ) | — | 917 | |||||||||||||||||||
Net realized investment gains (losses), pretax | (3 | ) | (13 | ) | 1 | 37 | 9 | — | 31 | |||||||||||||||||||
Income tax (expense) benefit on net realized investment gains (losses) | 1 | 4 | — | (13 | ) | (3 | ) | — | (11 | ) | ||||||||||||||||||
Net realized investment gains (losses) | (2 | ) | (9 | ) | 1 | 24 | 6 | — | 20 | |||||||||||||||||||
Net income (loss) from continuing operations attributable to CNA | $ | 705 | $ | 459 | $ | 11 | $ | (34 | ) | $ | (204 | ) | $ | — | $ | 937 | ||||||||||||
____________________ | ||||||||||||||||||||||||||||
(a) | Related to business in property and casualty companies only. | |||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Reinsurance receivables | $ | 546 | $ | 1,075 | $ | 197 | $ | 1,203 | $ | 3,067 | $ | — | $ | 6,088 | ||||||||||||||
Insurance receivables | $ | 775 | $ | 1,099 | $ | 176 | $ | 11 | $ | 2 | $ | — | $ | 2,063 | ||||||||||||||
Deferred acquisition costs | $ | 318 | $ | 257 | $ | 49 | $ | — | $ | — | $ | — | $ | 624 | ||||||||||||||
Goodwill | $ | 117 | $ | — | $ | 38 | $ | — | $ | — | $ | — | $ | 155 | ||||||||||||||
Insurance reserves | ||||||||||||||||||||||||||||
Claim and claim adjustment expenses | $ | 6,689 | $ | 10,649 | $ | 386 | $ | 3,058 | $ | 3,307 | $ | — | $ | 24,089 | ||||||||||||||
Unearned premiums | 1,805 | 1,536 | 249 | 128 | — | — | 3,718 | |||||||||||||||||||||
Future policy benefits | — | — | — | 10,471 | — | — | 10,471 | |||||||||||||||||||||
Policyholders’ funds | 9 | 15 | — | 92 | — | — | 116 | |||||||||||||||||||||
Year ended December 31, 2012 | CNA | CNA | Hardy(b) | Life & | Corporate | |||||||||||||||||||||||
Specialty | Commercial | Group | & Other | |||||||||||||||||||||||||
(In millions) | Non-Core | Non-Core | Eliminations | Total | ||||||||||||||||||||||||
Net written premiums (a) | $ | 2,924 | $ | 3,373 | $ | 117 | $ | 553 | $ | (1 | ) | $ | (2 | ) | $ | 6,964 | ||||||||||||
Operating revenues | ||||||||||||||||||||||||||||
Net earned premiums | $ | 2,898 | $ | 3,306 | $ | 120 | $ | 560 | $ | — | $ | (2 | ) | $ | 6,882 | |||||||||||||
Net investment income | 592 | 854 | 3 | 801 | 32 | — | 2,282 | |||||||||||||||||||||
Other revenues | 230 | 40 | 1 | 34 | 16 | (1 | ) | 320 | ||||||||||||||||||||
Total operating revenues | 3,720 | 4,200 | 124 | 1,395 | 48 | (3 | ) | 9,484 | ||||||||||||||||||||
Claims, Benefits and Expenses | ||||||||||||||||||||||||||||
Net incurred claims and benefits | 1,831 | 2,574 | 72 | 1,406 | (16 | ) | — | 5,867 | ||||||||||||||||||||
Policyholders’ dividends | 2 | 11 | — | 16 | — | — | 29 | |||||||||||||||||||||
Amortization of deferred acquisition costs | 614 | 588 | 44 | 28 | — | — | 1,274 | |||||||||||||||||||||
Other insurance related expenses | 301 | 578 | 25 | 144 | 3 | (2 | ) | 1,049 | ||||||||||||||||||||
Other expenses | 206 | 36 | 9 | 23 | 183 | (1 | ) | 456 | ||||||||||||||||||||
Total claims, benefits and expenses | 2,954 | 3,787 | 150 | 1,617 | 170 | (3 | ) | 8,675 | ||||||||||||||||||||
Operating income (loss) from continuing operations before income tax | 766 | 413 | (26 | ) | (222 | ) | (122 | ) | — | 809 | ||||||||||||||||||
Income tax (expense) benefit on operating income (loss) | (262 | ) | (136 | ) | 3 | 132 | 41 | — | (222 | ) | ||||||||||||||||||
Net operating income (loss) from continuing operations attributable to CNA | 504 | 277 | (23 | ) | (90 | ) | (81 | ) | — | 587 | ||||||||||||||||||
Net realized investment gains (losses), pretax | 22 | 38 | (1 | ) | — | 4 | — | 63 | ||||||||||||||||||||
Income tax (expense) benefit on net realized investment gains (losses) | (9 | ) | (11 | ) | — | — | (2 | ) | — | (22 | ) | |||||||||||||||||
Net realized investment gains (losses) | 13 | 27 | (1 | ) | — | 2 | — | 41 | ||||||||||||||||||||
Net income (loss) from continuing operations attributable to CNA | $ | 517 | $ | 304 | $ | (24 | ) | $ | (90 | ) | $ | (79 | ) | $ | — | $ | 628 | |||||||||||
____________________ | ||||||||||||||||||||||||||||
(a) | Related to business in property and casualty companies only. | |||||||||||||||||||||||||||
(b) | Included from date of acquisition. | |||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Reinsurance receivables | $ | 665 | $ | 1,155 | $ | 294 | $ | 1,273 | $ | 2,844 | $ | — | $ | 6,231 | ||||||||||||||
Insurance receivables | $ | 673 | $ | 1,116 | $ | 181 | $ | 9 | $ | 4 | $ | — | $ | 1,983 | ||||||||||||||
Deferred acquisition costs | $ | 300 | $ | 269 | $ | 29 | $ | — | $ | — | $ | — | $ | 598 | ||||||||||||||
Goodwill | $ | 117 | $ | — | $ | 37 | $ | — | $ | — | $ | — | $ | 154 | ||||||||||||||
Insurance reserves | ||||||||||||||||||||||||||||
Claim and claim adjustment expenses | $ | 6,748 | $ | 11,326 | $ | 521 | $ | 3,006 | $ | 3,162 | $ | — | $ | 24,763 | ||||||||||||||
Unearned premiums | 1,685 | 1,569 | 222 | 134 | — | — | 3,610 | |||||||||||||||||||||
Future policy benefits | — | — | — | 11,475 | — | — | 11,475 | |||||||||||||||||||||
Policyholders’ funds | 8 | 15 | — | 134 | — | — | 157 | |||||||||||||||||||||
Year ended December 31, 2011 | CNA | CNA | Life & | Corporate | ||||||||||||||||||||||||
Specialty | Commercial | Group | & Other | |||||||||||||||||||||||||
(In millions) | Non-Core | Non-Core | Eliminations | Total | ||||||||||||||||||||||||
Net written premiums (a) | $ | 2,872 | $ | 3,350 | $ | 577 | $ | 2 | $ | (3 | ) | $ | 6,798 | |||||||||||||||
Operating revenues | ||||||||||||||||||||||||||||
Net earned premiums | $ | 2,796 | $ | 3,240 | $ | 569 | $ | 1 | $ | (3 | ) | $ | 6,603 | |||||||||||||||
Net investment income | 500 | 763 | 759 | 32 | — | 2,054 | ||||||||||||||||||||||
Other revenues | 221 | 54 | 13 | 6 | — | 294 | ||||||||||||||||||||||
Total operating revenues | 3,517 | 4,057 | 1,341 | 39 | (3 | ) | 8,951 | |||||||||||||||||||||
Claims, Benefits and Expenses | ||||||||||||||||||||||||||||
Net incurred claims and benefits | 1,657 | 2,296 | 1,526 | (3 | ) | — | 5,476 | |||||||||||||||||||||
Policyholders’ dividends | (3 | ) | 8 | 8 | — | — | 13 | |||||||||||||||||||||
Amortization of deferred acquisition costs | 568 | 585 | 23 | — | — | 1,176 | ||||||||||||||||||||||
Other insurance related expenses | 294 | 540 | 143 | 6 | (3 | ) | 980 | |||||||||||||||||||||
Other expenses | 191 | 53 | 19 | 170 | — | 433 | ||||||||||||||||||||||
Total claims, benefits and expenses | 2,707 | 3,482 | 1,719 | 173 | (3 | ) | 8,078 | |||||||||||||||||||||
Operating income (loss) from continuing operations before income tax | 810 | 575 | (378 | ) | (134 | ) | — | 873 | ||||||||||||||||||||
Income tax (expense) benefit on operating income (loss) | (281 | ) | (204 | ) | 170 | 68 | — | (247 | ) | |||||||||||||||||||
Net operating (income) loss, after-tax, attributable to noncontrolling interests | (12 | ) | (4 | ) | — | — | — | (16 | ) | |||||||||||||||||||
Net operating income (loss) from continuing operations attributable to CNA | 517 | 367 | (208 | ) | (66 | ) | — | 610 | ||||||||||||||||||||
Net realized investment gains (losses), pretax | (5 | ) | 16 | (7 | ) | (6 | ) | — | (2 | ) | ||||||||||||||||||
Income tax (expense) benefit on net realized investment gains (losses) | 2 | (2 | ) | 2 | 3 | — | 5 | |||||||||||||||||||||
Net realized investment gains (losses) | (3 | ) | 14 | (5 | ) | (3 | ) | — | 3 | |||||||||||||||||||
Net income (loss) from continuing operations attributable to CNA | $ | 514 | $ | 381 | $ | (213 | ) | $ | (69 | ) | $ | — | $ | 613 | ||||||||||||||
____________________ | ||||||||||||||||||||||||||||
(a) | Related to business in property and casualty companies only. | |||||||||||||||||||||||||||
Revenues by line of business | ' | |||||||||||||||||||||||||||
Revenues by Line of Business | ||||||||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||||||||||||||||||
CNA Specialty | ||||||||||||||||||||||||||||
International | $ | 239 | $ | 220 | $ | 210 | ||||||||||||||||||||||
Management & Professional Liability | 2,836 | 2,723 | 2,541 | |||||||||||||||||||||||||
Surety | 490 | 485 | 472 | |||||||||||||||||||||||||
Warranty & Alternative Risks | 350 | 314 | 289 | |||||||||||||||||||||||||
CNA Specialty revenues | 3,915 | 3,742 | 3,512 | |||||||||||||||||||||||||
CNA Commercial | ||||||||||||||||||||||||||||
Commercial Insurance | 3,230 | 3,200 | 2,953 | |||||||||||||||||||||||||
International | 376 | 369 | 539 | |||||||||||||||||||||||||
Small Business | 754 | 669 | 581 | |||||||||||||||||||||||||
CNA Commercial revenues | 4,360 | 4,238 | 4,073 | |||||||||||||||||||||||||
Hardy revenues | 366 | 123 | ||||||||||||||||||||||||||
Life & Group Non-Core | ||||||||||||||||||||||||||||
Health | 1,192 | 1,120 | 1,093 | |||||||||||||||||||||||||
Life & Annuity | 232 | 239 | 229 | |||||||||||||||||||||||||
Other | — | 36 | 12 | |||||||||||||||||||||||||
Life & Group Non-Core revenues | 1,424 | 1,395 | 1,334 | |||||||||||||||||||||||||
Corporate & Other Non-Core revenues | 52 | 52 | 33 | |||||||||||||||||||||||||
Eliminations | (4 | ) | (3 | ) | (3 | ) | ||||||||||||||||||||||
Total revenues | $ | 10,113 | $ | 9,547 | $ | 8,949 | ||||||||||||||||||||||
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Quarterly Financial Data [Abstract] | ' | |||||||||||||||||||
Schedule of quarterly financial information | ' | |||||||||||||||||||
Quarterly Financial Data | ||||||||||||||||||||
2013 | ||||||||||||||||||||
(In millions, except per share data) | First | Second | Third | Fourth | Full Year | |||||||||||||||
Revenues | $ | 2,503 | $ | 2,493 | $ | 2,504 | $ | 2,613 | $ | 10,113 | ||||||||||
Net income (loss) attributable to CNA | $ | 250 | $ | 194 | $ | 272 | $ | 221 | $ | 937 | ||||||||||
Basic earnings (loss) per share attributable to CNA common stockholders | $ | 0.93 | $ | 0.72 | $ | 1.01 | $ | 0.82 | $ | 3.48 | ||||||||||
Diluted earnings (loss) per share attributable to CNA common stockholders (a) | $ | 0.93 | $ | 0.72 | $ | 1.01 | $ | 0.82 | $ | 3.47 | ||||||||||
2012 | ||||||||||||||||||||
(In millions, except per share data) | First | Second | Third | Fourth | Full Year | |||||||||||||||
Revenues | $ | 2,401 | $ | 2,246 | $ | 2,466 | $ | 2,434 | $ | 9,547 | ||||||||||
Net income (loss) attributable to CNA | $ | 250 | $ | 166 | $ | 221 | $ | (9 | ) | $ | 628 | |||||||||
Basic and diluted earnings (loss) per share attributable to CNA common stockholders (a) | $ | 0.93 | $ | 0.62 | $ | 0.82 | $ | (0.03 | ) | $ | 2.33 | |||||||||
____________________ | ||||||||||||||||||||
(a) | Due to the averaging of shares, quarterly earnings per share do not add to the total for the full year. |
Schedule_V_Valuation_and_Quali1
Schedule V. Valuation and Qualifying Accounts (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | |||||||||||||||||||
Schedule of valuation and qualifying accounts | ' | |||||||||||||||||||
SCHEDULE V. VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||||||
(In millions) | Balance at Beginning of Period | Charged to Costs and Expenses | Charged to Other Accounts (a) | Deductions | Balance at End of Period | |||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||
Deducted from assets: | ||||||||||||||||||||
Allowance for doubtful accounts: | ||||||||||||||||||||
Insurance and reinsurance receivables | $ | 174 | $ | (6 | ) | $ | (3 | ) | $ | (10 | ) | $ | 155 | |||||||
Year ended December 31, 2012 | ||||||||||||||||||||
Deducted from assets: | ||||||||||||||||||||
Allowance for doubtful accounts: | ||||||||||||||||||||
Insurance and reinsurance receivables | $ | 203 | $ | (23 | ) | $ | 5 | $ | (11 | ) | $ | 174 | ||||||||
Year ended December 31, 2011 | ||||||||||||||||||||
Deducted from assets: | ||||||||||||||||||||
Allowance for doubtful accounts: | ||||||||||||||||||||
Insurance and reinsurance receivables | $ | 285 | $ | (55 | ) | $ | — | $ | (27 | ) | $ | 203 | ||||||||
(a) Amount includes effects of foreign currency translation. |
Schedule_VI_Supplemental_Infor1
Schedule VI. Supplemental Information Concerning Property and Casualty Insurance Operations (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Supplemental Information for Property, Casualty Insurance Underwriters [Abstract] | ' | |||||||||||
Supplemental information concerning property and casualty insurance operations | ' | |||||||||||
SCHEDULE VI. SUPPLEMENTAL INFORMATION CONCERNING PROPERTY AND CASUALTY INSURANCE OPERATIONS | ||||||||||||
As of and for the years ended December 31 | Consolidated Property and Casualty Operations | |||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||
Deferred acquisition costs | $ | 624 | $ | 598 | ||||||||
Reserves for unpaid claim and claim adjustment expenses | 24,015 | 24,696 | ||||||||||
Discount deducted from claim and claim adjustment expense reserves above (based on interest rates ranging from 3.0% to 9.7%) | 1,586 | 1,850 | ||||||||||
Unearned premiums | 3,718 | 3,610 | ||||||||||
Net written premiums | 7,348 | 6,964 | $ | 6,798 | ||||||||
Net earned premiums | 7,271 | 6,881 | 6,603 | |||||||||
Net investment income | 2,240 | 2,074 | 1,845 | |||||||||
Incurred claim and claim adjustment expenses related to current year | 5,113 | 5,266 | 4,901 | |||||||||
Incurred claim and claim adjustment expenses related to prior years | (115 | ) | (180 | ) | (429 | ) | ||||||
Amortization of deferred acquisition costs | 1,362 | 1,274 | 1,176 | |||||||||
Paid claim and claim adjustment expenses | 5,566 | 5,257 | 4,499 | |||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Narrative) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Nov. 29, 2011 | |
Percentage owned of outstanding common stock by majority shareholder | 90.00% | ' | ' | ' |
Business Acquisition, Purchase Price | ' | $231,000,000 | ' | ' |
Business Combination, Acquisition Related Costs | ' | 4,000,000 | ' | ' |
Sale of CNA ownership percentage of FICOH | ' | ' | ' | 50.00% |
Anticipated amounts due from insureds related to losses under deductible policies | 1,300,000,000 | 1,300,000,000 | ' | ' |
Minimum interest rate used in determining present value of obligations of structured settlements not funded by annuities | 7.10% | 7.10% | ' | ' |
Maximum interest rate used in determining present value of obligations of structured settlements not funded by annuities | 9.70% | 9.70% | ' | ' |
Discounted reserves for unfunded structured settlements | 580,000,000 | 602,000,000 | ' | ' |
Discounted reserves for unfunded structure settlements, discount amount | 969,000,000 | 1,000,000,000 | ' | ' |
Minimum interest rate used to discount workers' compensation lifetime claim reserves and accident and health claim reserves | 3.00% | 3.00% | ' | ' |
Maximum interest rate used to discount workers' compensation lifetime claim reserves and accident and health claim reserves | 6.80% | 6.50% | ' | ' |
Discounted reserves for worker's compensation lifetime claim reserves and accident and health claim reserves | 2,400,000,000 | 2,200,000,000 | ' | ' |
Discounted reserves for worker's compensation lifetime claim reserves and accident and health claim reserves, discount amount | 617,000,000 | 837,000,000 | ' | ' |
Minimum interest rate used to calculate reserves for long term care products | 4.50% | 5.00% | ' | ' |
Maximum interest rate used to calculate reserves for payout annuity contracts | 7.90% | 7.40% | ' | ' |
Minimum interest rate used to calculate reserves for payout annuity contracts | 5.00% | 5.00% | ' | ' |
Maximum interest rate used to calculate reserves for payout annuity contracts | 8.70% | 8.70% | ' | ' |
Increase in insurance reserves due to unlocking actuarial assumptions related to payout annuity contracts | ' | 33,000,000 | ' | ' |
Liability balance for guaranty fund | 143,000,000 | 143,000,000 | ' | ' |
Related assets for premium tax offsets included in other assets | 1,000,000 | 2,000,000 | ' | ' |
Percentage of billed receivables compared to total reinsurance receivables | '5% or less | ' | ' | ' |
Deposit assets | 3,000,000 | 3,000,000 | ' | ' |
Deposit liabilities | 130,000,000 | 125,000,000 | ' | ' |
Deferred acquisition costs, net of shadow adjustment | 342,000,000 | 369,000,000 | ' | ' |
Investments in life settlement contracts | 88,000,000 | 100,000,000 | ' | ' |
Increase (decrease) in fair value recognized on life settlement contracts | -2,000,000 | 11,000,000 | 5,000,000 | ' |
Gain recognized on matured life settlement contracts | 15,000,000 | 42,000,000 | 28,000,000 | ' |
Decrease in shadow adjustment, net of tax | 979,000,000 | ' | ' | ' |
Increase in shadow adjustment, net of tax | ' | 789,000,000 | ' | ' |
Reduction of net unrealized gains on investments included in AOCI due to shadow adjustments | 532,000,000 | 1,511,000,000 | ' | ' |
Foreign currency transaction gain (loss), before tax | 2,000,000 | 12,000,000 | 4,000,000 | ' |
Weighted average number diluted shares outstanding adjustment | 552,000 | 417,000 | 290,000 | ' |
Antidilutive securities excluded from computation of earnings per share, amount | 111,000 | 730,000 | 1,100,000 | ' |
Interest paid, net | 164,000,000 | 170,000,000 | 175,000,000 | ' |
Proceeds from income tax refunds | ' | 29,000,000 | ' | ' |
Income taxes paid | $129,000,000 | ' | $61,000,000 | ' |
Furniture and Fixtures [Member] | ' | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '7 years | ' | ' | ' |
Office Equipment [Member] | ' | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '5 years | ' | ' | ' |
Building and Building Improvements [Member] | ' | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '50 years | ' | ' | ' |
Minimum [Member] | ' | ' | ' | ' |
Requisite service period for stock- based compensation expense | '3 years | ' | ' | ' |
Minimum [Member] | Software [Member] | ' | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '3 years | ' | ' | ' |
Maximum [Member] | ' | ' | ' | ' |
Requisite service period for stock- based compensation expense | '4 years | ' | ' | ' |
Maximum [Member] | Software [Member] | ' | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '5 years | ' | ' | ' |
Property and Casualty insurance core operations [Member] | ' | ' | ' | ' |
Number of Operating Segments | 3 | ' | ' | ' |
Life and Group Non-Core & Corporate and Other Non-Core operations [Member] | ' | ' | ' | ' |
Number of Operating Segments | 2 | ' | ' | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Life Settlement Contracts) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Life Settlement Contracts, Fair Value Method, Number of Contracts, Fiscal Year Maturity [Abstract] | ' | ' |
Life settlement contracts, fair value method, number of contracts, maturing in next twelve months | 60 | ' |
Life settlement contracts, fair value method, number of contracts, maturing in year two | 60 | ' |
Life settlement contracts, fair value method, number of contracts, maturing in year three | 50 | ' |
Life settlement contracts, fair value method, number of contracts, maturing in year four | 50 | ' |
Life settlement contracts, fair value method, number of contracts, maturing in year five | 40 | ' |
Life settlement contracts, fair value method, number of contracts, maturing after year five | 364 | ' |
Life settlement contracts, fair value method, number of contracts | 624 | ' |
Life settlement contracts, fair value, maturing in next twelve months | $13 | ' |
Life settlement contracts, fair value, maturing in year two | 11 | ' |
Life settlement contracts, fair value, maturing in year three | 9 | ' |
Life settlement contracts, fair value, maturing in year four | 8 | ' |
Life settlement contracts, fair value, maturing in year five | 7 | ' |
Life settlement contracts, fair value, maturing after year five | 40 | ' |
Life settlement contracts, fair value | 88 | 100 |
Life settlement contracts, fair value method, face value, maturing in next twelve months | 39 | ' |
Life settlement contracts, fair value method, face value, maturing in year two | 35 | ' |
Life settlement contracts, fair value method, face value, maturing in year three | 32 | ' |
Life settlement contracts, fair value method, face value, maturing in year four | 29 | ' |
Life settlement contracts, fair value method, face value, maturing in year five | 26 | ' |
Life settlement contracts, fair value method, face value, maturing after year five | 217 | ' |
Life settlement contracts, fair value method, face value | $378 | ' |
Investments_Narrative_Details
Investments (Narrative) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Investments [Abstract] | ' | ' | ' |
Number of non-income producing fixed maturity securities | ' | 9 | ' |
Fair value of non income fixed maturity security | ' | $1 | ' |
Number of investments that exceed ten percent of stockholders' equity | ' | ' | ' |
Limited partnership investments | 2,720 | 2,462 | ' |
Undistributed earnings of limited partnership investments | 969 | 768 | ' |
Percentage of limited partnerships reported on a current basis | 67.00% | ' | ' |
Percentage of limited partnerships reported on a one month lag | 16.00% | ' | ' |
Number of active limited partnership investments held | 87 | 79 | ' |
Percentage of limited partnerships employing hedge fund strategies focused on fixed income and equity investments | 74.00% | 80.00% | ' |
Percentage of equity related limited partnership hedge fund strategies | 51.00% | ' | ' |
Percentage of multistrategy approach limited partnership hedge fund strategies | 28.00% | ' | ' |
Percentage of distressed investments limited partnership hedge fund strategies | 17.00% | ' | ' |
Percentage of fixed income limited partnership hedge fund strategies | 4.00% | ' | ' |
Limited partnerships invested in private debt and equity | 22.00% | 16.00% | ' |
Carrying value of ten largest limited partnerships | 1,471 | 1,309 | ' |
Carrying value of limited partnerships as percentage of aggregate partnership equity | 4.00% | 4.00% | ' |
Income As Percentage Of Change In Partnership Equity For All Limited Partnerships | 4.00% | 3.00% | 4.00% |
Commercial mortgage loans past due or in non-accrual status | ' | ' | ' |
Valuation allowances recorded on commercial mortgage loans | ' | ' | ' |
Future capital call commitments for limited partnership investments | 381 | ' | ' |
Commitments to purchase or fund privately placed debt securities | 151 | ' | ' |
Commitments to sell various privately placed debt securities | 145 | ' | ' |
Carrying value of securities deposited under requirements of regulatory authorities | 3,300 | 3,600 | ' |
Cash and securities deposited as collateral for letters of credit | 353 | 4 | ' |
Carrying value of assets deposited to secure reinsurance and third party obligations | $294 | $277 | ' |
Investments_Net_investment_inc
Investments (Net investment income) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net Investment Income [Line Items] | ' | ' | ' |
Gross investment income | $2,506 | $2,338 | $2,112 |
Investment expense | -56 | -56 | -58 |
Net investment income | 2,450 | 2,282 | 2,054 |
Fixed maturity securities [Member] | ' | ' | ' |
Net Investment Income [Line Items] | ' | ' | ' |
Gross investment income | 1,998 | 2,022 | 2,011 |
Short term investments [Member] | ' | ' | ' |
Net Investment Income [Line Items] | ' | ' | ' |
Gross investment income | 3 | 5 | 8 |
Limited partnership investments [Member] | ' | ' | ' |
Net Investment Income [Line Items] | ' | ' | ' |
Gross investment income | 451 | 251 | 48 |
Equity securities [Member] | ' | ' | ' |
Net Investment Income [Line Items] | ' | ' | ' |
Gross investment income | 12 | 12 | 20 |
Mortgage loans [Member] | ' | ' | ' |
Net Investment Income [Line Items] | ' | ' | ' |
Gross investment income | 23 | 17 | 9 |
Trading portfolio [Member] | ' | ' | ' |
Net Investment Income [Line Items] | ' | ' | ' |
Gross investment income | 17 | 24 | 9 |
Other [Member] | ' | ' | ' |
Net Investment Income [Line Items] | ' | ' | ' |
Gross investment income | $2 | $7 | $7 |
Investments_Net_realized_inves
Investments (Net realized investment gains (losses)) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net realized investment gains (losses) | $31 | $63 | ($2) |
Fixed maturity securities [Member] | ' | ' | ' |
Gross realized gains | 201 | 232 | 289 |
Gross realized losses | -146 | -149 | -311 |
Net realized investment gains (losses) | 55 | 83 | -22 |
Equity securities [Member] | ' | ' | ' |
Gross realized gains | 13 | 19 | 10 |
Gross realized losses | -35 | -42 | -11 |
Net realized investment gains (losses) | -22 | -23 | -1 |
Derivative [Member] | ' | ' | ' |
Net realized investment gains (losses) | -9 | -2 | ' |
Short term investments and other [Member] | ' | ' | ' |
Net realized investment gains (losses) | $7 | $5 | $21 |
Investments_Net_change_in_unre
Investments (Net change in unrealized gains (losses) on investments) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net change in unrealized gains (losses) on investments | ($2,556) | $1,875 | $1,437 |
Fixed maturity securities [Member] | ' | ' | ' |
Net change in unrealized gains (losses) on investments | -2,541 | 1,871 | 1,442 |
Equity securities [Member] | ' | ' | ' |
Net change in unrealized gains (losses) on investments | -15 | 5 | -2 |
Other [Member] | ' | ' | ' |
Net change in unrealized gains (losses) on investments | ' | ($1) | ($3) |
Investments_Components_of_othe
Investments (Components of other-than-temporary impairment losses recognized in earnings) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other-than-temporary impairment losses recognized in earnings | $78 | $154 | $216 |
Corporate and other bonds [Member] | ' | ' | ' |
Other-than-temporary impairment losses recognized in earnings | 22 | 27 | 95 |
States, municipalities and political subdivisions [Member] | ' | ' | ' |
Other-than-temporary impairment losses recognized in earnings | ' | 34 | ' |
Residential mortgage-backed [Member] | ' | ' | ' |
Other-than-temporary impairment losses recognized in earnings | 19 | 50 | 105 |
Other asset-backed [Member] | ' | ' | ' |
Other-than-temporary impairment losses recognized in earnings | 2 | ' | 6 |
Total asset-backed [Member] | ' | ' | ' |
Other-than-temporary impairment losses recognized in earnings | 21 | 50 | 111 |
U.S. Treasury and obligations of government-sponsored enterprises [Member] | ' | ' | ' |
Other-than-temporary impairment losses recognized in earnings | ' | 1 | ' |
Total fixed maturity securities available-for-sale [Member] | ' | ' | ' |
Other-than-temporary impairment losses recognized in earnings | 43 | 112 | 206 |
Common stock [Member] | ' | ' | ' |
Other-than-temporary impairment losses recognized in earnings | 8 | 6 | 8 |
Preferred stock [Member] | ' | ' | ' |
Other-than-temporary impairment losses recognized in earnings | 26 | 36 | 1 |
Total equity securities available-for-sale [Member] | ' | ' | ' |
Other-than-temporary impairment losses recognized in earnings | 34 | 42 | 9 |
Short term investments [Member] | ' | ' | ' |
Other-than-temporary impairment losses recognized in earnings | $1 | ' | $1 |
Investments_Summary_of_fixed_m
Investments (Summary of fixed maturity and equity securities) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Cost or Amortized Cost | $39,490 | $38,398 |
Gross Unrealized Gains | 2,460 | 4,639 |
Gross Unrealized Losses | 532 | 155 |
Estimated fair value | 41,418 | 42,882 |
Corporate and other bonds [Member] | ' | ' |
Cost or Amortized Cost | 19,352 | 19,530 |
Gross Unrealized Gains | 1,645 | 2,698 |
Gross Unrealized Losses | 135 | 21 |
Estimated fair value | 20,862 | 22,207 |
Unrealized OTTI Losses (Gains) | ' | ' |
States, municipalities and political subdivisions [Member] | ' | ' |
Cost or Amortized Cost | 11,281 | 9,372 |
Gross Unrealized Gains | 548 | 1,455 |
Gross Unrealized Losses | 272 | 44 |
Estimated fair value | 11,557 | 10,783 |
Unrealized OTTI Losses (Gains) | ' | ' |
Residential mortgage-backed [Member] | ' | ' |
Cost or Amortized Cost | 4,940 | 5,745 |
Gross Unrealized Gains | 123 | 246 |
Gross Unrealized Losses | 92 | 71 |
Estimated fair value | 4,971 | 5,920 |
Unrealized OTTI Losses (Gains) | -37 | -28 |
Commercial mortgage-backed [Member] | ' | ' |
Cost or Amortized Cost | 1,995 | 1,692 |
Gross Unrealized Gains | 90 | 147 |
Gross Unrealized Losses | 22 | 17 |
Estimated fair value | 2,063 | 1,822 |
Unrealized OTTI Losses (Gains) | -3 | -3 |
Other asset-backed [Member] | ' | ' |
Cost or Amortized Cost | 945 | 929 |
Gross Unrealized Gains | 13 | 23 |
Gross Unrealized Losses | 3 | ' |
Estimated fair value | 955 | 952 |
Unrealized OTTI Losses (Gains) | ' | ' |
Total asset-backed [Member] | ' | ' |
Cost or Amortized Cost | 7,880 | 8,366 |
Gross Unrealized Gains | 226 | 416 |
Gross Unrealized Losses | 117 | 88 |
Estimated fair value | 7,989 | 8,694 |
Unrealized OTTI Losses (Gains) | -40 | -31 |
U.S. Treasury and obligations of government-sponsored enterprises [Member] | ' | ' |
Cost or Amortized Cost | 139 | 172 |
Gross Unrealized Gains | 6 | 11 |
Gross Unrealized Losses | 1 | 1 |
Estimated fair value | 144 | 182 |
Unrealized OTTI Losses (Gains) | ' | ' |
Foreign Government Debt Securities [Member] | ' | ' |
Cost or Amortized Cost | 531 | 588 |
Gross Unrealized Gains | 15 | 25 |
Gross Unrealized Losses | 3 | ' |
Estimated fair value | 543 | 613 |
Unrealized OTTI Losses (Gains) | ' | ' |
Redeemable preferred stock [Member] | ' | ' |
Cost or Amortized Cost | 92 | 113 |
Gross Unrealized Gains | 10 | 13 |
Gross Unrealized Losses | ' | 1 |
Estimated fair value | 102 | 125 |
Unrealized OTTI Losses (Gains) | ' | ' |
Total fixed maturity securities available-for-sale [Member] | ' | ' |
Cost or Amortized Cost | 39,275 | 38,141 |
Gross Unrealized Gains | 2,450 | 4,618 |
Gross Unrealized Losses | 528 | 155 |
Estimated fair value | 41,197 | 42,604 |
Unrealized OTTI Losses (Gains) | -40 | -31 |
Total fixed maturity securities trading [Member] | ' | ' |
Cost or Amortized Cost, Trading Securities | 36 | 29 |
Gross Unrealized Gains, Trading Securities | ' | ' |
Gross Unrealized Losses, Trading Securities | ' | ' |
Estimated Fair Value, Trading Securities | 36 | 29 |
Common stock [Member] | ' | ' |
Cost or Amortized Cost | 36 | 38 |
Gross Unrealized Gains | 9 | 14 |
Gross Unrealized Losses | ' | ' |
Estimated fair value | 45 | 52 |
Preferred stock [Member] | ' | ' |
Cost or Amortized Cost | 143 | 190 |
Gross Unrealized Gains | 1 | 7 |
Gross Unrealized Losses | 4 | ' |
Estimated fair value | 140 | 197 |
Total equity securities available-for-sale [Member] | ' | ' |
Cost or Amortized Cost | 179 | 228 |
Gross Unrealized Gains | 10 | 21 |
Gross Unrealized Losses | 4 | ' |
Estimated fair value | $185 | $249 |
Investments_Securities_in_a_gr
Investments (Securities in a gross unrealized loss position) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Estimated Fair Value, Less than 12 Months | $9,256 | $1,819 |
Gross Unrealized Losses, Less than 12 Months | 388 | 27 |
Estimated Fair Value, 12 Months or Longer | 544 | 866 |
Gross Unrealized Losses, 12 Months or Longer | 144 | 128 |
Estimated Fair Value, Total | 9,800 | 2,685 |
Gross Unrealized Losses, Total | 532 | 155 |
Corporate and other bonds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Estimated Fair Value, Less than 12 Months | 3,592 | 846 |
Gross Unrealized Losses, Less than 12 Months | 129 | 13 |
Estimated Fair Value, 12 Months or Longer | 72 | 108 |
Gross Unrealized Losses, 12 Months or Longer | 6 | 8 |
Estimated Fair Value, Total | 3,664 | 954 |
Gross Unrealized Losses, Total | 135 | 21 |
States, municipalities and political subdivisions [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Estimated Fair Value, Less than 12 Months | 3,251 | 254 |
Gross Unrealized Losses, Less than 12 Months | 197 | 5 |
Estimated Fair Value, 12 Months or Longer | 129 | 165 |
Gross Unrealized Losses, 12 Months or Longer | 75 | 39 |
Estimated Fair Value, Total | 3,380 | 419 |
Gross Unrealized Losses, Total | 272 | 44 |
Residential mortgage-backed [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Estimated Fair Value, Less than 12 Months | 1,293 | 583 |
Gross Unrealized Losses, Less than 12 Months | 29 | 5 |
Estimated Fair Value, 12 Months or Longer | 343 | 452 |
Gross Unrealized Losses, 12 Months or Longer | 63 | 66 |
Estimated Fair Value, Total | 1,636 | 1,035 |
Gross Unrealized Losses, Total | 92 | 71 |
Commercial mortgage-backed [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Estimated Fair Value, Less than 12 Months | 640 | 85 |
Gross Unrealized Losses, Less than 12 Months | 22 | 2 |
Estimated Fair Value, 12 Months or Longer | ' | 141 |
Gross Unrealized Losses, 12 Months or Longer | ' | 15 |
Estimated Fair Value, Total | 640 | 226 |
Gross Unrealized Losses, Total | 22 | 17 |
Other asset-backed [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Estimated Fair Value, Less than 12 Months | 269 | ' |
Gross Unrealized Losses, Less than 12 Months | 3 | ' |
Estimated Fair Value, 12 Months or Longer | ' | ' |
Gross Unrealized Losses, 12 Months or Longer | ' | ' |
Estimated Fair Value, Total | 269 | ' |
Gross Unrealized Losses, Total | 3 | ' |
Total asset-backed [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Estimated Fair Value, Less than 12 Months | 2,202 | 668 |
Gross Unrealized Losses, Less than 12 Months | 54 | 7 |
Estimated Fair Value, 12 Months or Longer | 343 | 593 |
Gross Unrealized Losses, 12 Months or Longer | 63 | 81 |
Estimated Fair Value, Total | 2,545 | 1,261 |
Gross Unrealized Losses, Total | 117 | 88 |
U.S. Treasury and obligations of government-sponsored enterprises [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Estimated Fair Value, Less than 12 Months | 13 | 23 |
Gross Unrealized Losses, Less than 12 Months | 1 | 1 |
Estimated Fair Value, 12 Months or Longer | ' | ' |
Gross Unrealized Losses, 12 Months or Longer | ' | ' |
Estimated Fair Value, Total | 13 | 23 |
Gross Unrealized Losses, Total | 1 | 1 |
Foreign Government Debt Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Estimated Fair Value, Less than 12 Months | 111 | ' |
Gross Unrealized Losses, Less than 12 Months | 3 | ' |
Estimated Fair Value, 12 Months or Longer | ' | ' |
Gross Unrealized Losses, 12 Months or Longer | ' | ' |
Estimated Fair Value, Total | 111 | ' |
Gross Unrealized Losses, Total | 3 | ' |
Redeemable preferred stock [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Estimated Fair Value, Less than 12 Months | ' | 28 |
Gross Unrealized Losses, Less than 12 Months | ' | 1 |
Estimated Fair Value, 12 Months or Longer | ' | ' |
Gross Unrealized Losses, 12 Months or Longer | ' | ' |
Estimated Fair Value, Total | ' | 28 |
Gross Unrealized Losses, Total | ' | 1 |
Total fixed maturity securities available-for-sale [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Estimated Fair Value, Less than 12 Months | 9,169 | 1,819 |
Gross Unrealized Losses, Less than 12 Months | 384 | 27 |
Estimated Fair Value, 12 Months or Longer | 544 | 866 |
Gross Unrealized Losses, 12 Months or Longer | 144 | 128 |
Estimated Fair Value, Total | 9,713 | 2,685 |
Gross Unrealized Losses, Total | 528 | 155 |
Preferred stock [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Estimated Fair Value, Less than 12 Months | 87 | ' |
Gross Unrealized Losses, Less than 12 Months | 4 | ' |
Estimated Fair Value, 12 Months or Longer | ' | ' |
Gross Unrealized Losses, 12 Months or Longer | ' | ' |
Estimated Fair Value, Total | 87 | ' |
Gross Unrealized Losses, Total | $4 | ' |
Investments_Activity_related_t
Investments (Activity related to the pretax fixed maturity credit loss component reflected within retained earnings for securities still held for which a portion of an OTTI loss was recognized in OCI) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ' | ' | ' |
Beginning balance of credit losses on fixed maturity securities | $95 | $92 | $141 |
Additional credit losses for securities for which an OTTI loss was previously recognized | 2 | 23 | 39 |
Credit losses for securities for which an OTTI loss was previously recognized | ' | 2 | 11 |
Reductions for securities sold during the period | -23 | -14 | -67 |
Reductions for securities the Company intends to sell or more likely than not will be required to sell | ' | -8 | -32 |
Ending balance of credit losses on fixed maturity securities | $74 | $95 | $92 |
Investments_Contractual_maturi
Investments (Contractual maturity) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Investments [Abstract] | ' | ' |
Due in one year or less, cost or amortized cost | $2,420 | $1,648 |
Due after one year through five years, cost or amortized cost | 9,496 | 13,603 |
Due after five years through ten years, cost or amortized cost | 11,667 | 8,726 |
Due after ten years, cost or amortized cost | 15,692 | 14,164 |
Total Amortized Cost Basis | 39,275 | 38,141 |
Due in one year or less, estimated fair value | 2,455 | 1,665 |
Due after one year through five years, estimated fair value | 10,068 | 14,442 |
Due after five years through ten years, estimated fair value | 11,954 | 9,555 |
Due after ten years, estimated fair value | 16,720 | 16,942 |
Total Estimated Fair Value | $41,197 | $42,604 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Narrative) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of Derivative Instruments [Abstract] | ' | ' |
Fair value of cash collateral by the Company | ' | $1 |
Fair value of cash collateral received from counterparties | ' | ' |
Derivative transactions entered into | 2,743 | 1,581 |
Derivative transactions terminated | $2,822 | $1,543 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Summary of aggregate contractual or notional amounts and gross estimated fair values related to derivative financial instruments) (Details) (Not Designated as Hedging Instrument [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Derivative [Line Items] | ' | ' |
Contractual/notional amount | ' | $84 |
Estimated fair value asset | ' | ' |
Estimated fair value (liability) | ' | -3 |
Credit default swap - purchased protection [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Contractual/notional amount | ' | 20 |
Estimated fair value asset | ' | ' |
Estimated fair value (liability) | ' | -1 |
Currency forwards [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Contractual/notional amount | ' | 59 |
Estimated fair value asset | ' | ' |
Estimated fair value (liability) | ' | -2 |
Equity warrants [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Contractual/notional amount | 5 | 5 |
Estimated fair value asset | ' | ' |
Estimated fair value (liability) | ' | ' |
Fair_Value_Assets_and_liabilit
Fair Value (Assets and liabilities measured at fair value on a recurring basis) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | $43,073 | $45,145 |
Fair value of liabilities, measured on a recurring basis | ' | -3 |
Corporate and other bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 20,898 | 22,236 |
States, municipalities and political subdivisions [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 11,557 | 10,783 |
Residential mortgage-backed [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 4,971 | 5,920 |
Commercial mortgage-backed [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 2,063 | 1,822 |
Other asset-backed [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 955 | 952 |
Total asset-backed [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 7,989 | 8,694 |
U.S. Treasury and obligations of government-sponsored enterprises [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 144 | 182 |
Foreign Government Debt Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 543 | 613 |
Redeemable preferred stock [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 102 | 125 |
Fixed maturity securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 41,233 | 42,633 |
Equity securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 185 | 249 |
Other invested assets [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 54 | 59 |
Short term investments [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 1,332 | 1,792 |
Life settlement contracts, included in Other assets [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 88 | 100 |
Separate account business [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 181 | 312 |
Derivative financial instruments, included in Other liabilities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of liabilities, measured on a recurring basis | ' | -3 |
Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 1,179 | 1,452 |
Fair value of liabilities, measured on a recurring basis | ' | ' |
Level 1 [Member] | Corporate and other bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 33 | 6 |
Level 1 [Member] | States, municipalities and political subdivisions [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | ' | ' |
Level 1 [Member] | Residential mortgage-backed [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | ' | ' |
Level 1 [Member] | Commercial mortgage-backed [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | ' | ' |
Level 1 [Member] | Other asset-backed [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | ' | ' |
Level 1 [Member] | Total asset-backed [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | ' | ' |
Level 1 [Member] | U.S. Treasury and obligations of government-sponsored enterprises [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 116 | 158 |
Level 1 [Member] | Foreign Government Debt Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 81 | 140 |
Level 1 [Member] | Redeemable preferred stock [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 45 | 40 |
Level 1 [Member] | Fixed maturity securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 275 | 344 |
Level 1 [Member] | Equity securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 126 | 117 |
Level 1 [Member] | Other invested assets [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | ' | ' |
Level 1 [Member] | Short term investments [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 769 | 987 |
Level 1 [Member] | Life settlement contracts, included in Other assets [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | ' | ' |
Level 1 [Member] | Separate account business [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 9 | 4 |
Level 1 [Member] | Derivative financial instruments, included in Other liabilities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of liabilities, measured on a recurring basis | ' | ' |
Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 40,591 | 42,299 |
Fair value of liabilities, measured on a recurring basis | ' | -2 |
Level 2 [Member] | Corporate and other bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 20,661 | 22,011 |
Level 2 [Member] | States, municipalities and political subdivisions [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 11,486 | 10,687 |
Level 2 [Member] | Residential mortgage-backed [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 4,640 | 5,507 |
Level 2 [Member] | Commercial mortgage-backed [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 1,912 | 1,693 |
Level 2 [Member] | Other asset-backed [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 509 | 584 |
Level 2 [Member] | Total asset-backed [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 7,061 | 7,784 |
Level 2 [Member] | U.S. Treasury and obligations of government-sponsored enterprises [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 28 | 24 |
Level 2 [Member] | Foreign Government Debt Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 462 | 473 |
Level 2 [Member] | Redeemable preferred stock [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 57 | 59 |
Level 2 [Member] | Fixed maturity securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 39,755 | 41,038 |
Level 2 [Member] | Equity securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 48 | 98 |
Level 2 [Member] | Other invested assets [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 54 | 58 |
Level 2 [Member] | Short term investments [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 563 | 799 |
Level 2 [Member] | Life settlement contracts, included in Other assets [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | ' | ' |
Level 2 [Member] | Separate account business [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 171 | 306 |
Level 2 [Member] | Derivative financial instruments, included in Other liabilities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of liabilities, measured on a recurring basis | ' | -2 |
Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 1,303 | 1,394 |
Fair value of liabilities, measured on a recurring basis | ' | -1 |
Level 3 [Member] | Corporate and other bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 204 | 219 |
Level 3 [Member] | States, municipalities and political subdivisions [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 71 | 96 |
Level 3 [Member] | Residential mortgage-backed [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 331 | 413 |
Level 3 [Member] | Commercial mortgage-backed [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 151 | 129 |
Level 3 [Member] | Other asset-backed [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 446 | 368 |
Level 3 [Member] | Total asset-backed [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 928 | 910 |
Level 3 [Member] | U.S. Treasury and obligations of government-sponsored enterprises [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | ' | ' |
Level 3 [Member] | Foreign Government Debt Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | ' | ' |
Level 3 [Member] | Redeemable preferred stock [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | ' | 26 |
Level 3 [Member] | Fixed maturity securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 1,203 | 1,251 |
Level 3 [Member] | Equity securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 11 | 34 |
Level 3 [Member] | Other invested assets [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | ' | 1 |
Level 3 [Member] | Short term investments [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | ' | 6 |
Level 3 [Member] | Life settlement contracts, included in Other assets [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 88 | 100 |
Level 3 [Member] | Separate account business [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of assets, measured on a recurring basis | 1 | 2 |
Level 3 [Member] | Derivative financial instruments, included in Other liabilities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of liabilities, measured on a recurring basis | ' | ($1) |
Fair_Value_Table_of_reconcilia
Fair Value (Table of reconciliation for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' |
Balance, Beginning, Assets | $1,393 | $1,751 |
Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss) | -5 | 28 |
Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss) | ' | 33 |
Purchases | 804 | 1,225 |
Sales | -414 | -580 |
Settlements | -275 | -494 |
Transfers into Level 3 | 94 | 59 |
Transfers out of Level 3 | -294 | -629 |
Balance, Ending, Assets | 1,303 | 1,393 |
Unrealized gains (losses) on Level 3 assets and liabilities held at balance sheet date recognized in net income (loss) | -36 | -48 |
Fixed maturity securities [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' |
Balance, Beginning, Assets | 1,251 | 1,507 |
Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss) | 9 | 11 |
Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss) | -3 | 27 |
Purchases | 801 | 1,175 |
Sales | -405 | -539 |
Settlements | -251 | -373 |
Transfers into Level 3 | 94 | 58 |
Transfers out of Level 3 | -293 | -615 |
Balance, Ending, Assets | 1,203 | 1,251 |
Unrealized gains (losses) on Level 3 assets and liabilities held at balance sheet date recognized in net income (loss) | -7 | -21 |
Corporate and other bonds [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' |
Balance, Beginning, Assets | 219 | 482 |
Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss) | 3 | 6 |
Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss) | ' | 4 |
Purchases | 142 | 231 |
Sales | -116 | -136 |
Settlements | -44 | -88 |
Transfers into Level 3 | 51 | 45 |
Transfers out of Level 3 | -51 | -325 |
Balance, Ending, Assets | 204 | 219 |
Unrealized gains (losses) on Level 3 assets and liabilities held at balance sheet date recognized in net income (loss) | -2 | -3 |
States, municipalities and political subdivisions [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' |
Balance, Beginning, Assets | 96 | 171 |
Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss) | -2 | ' |
Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss) | 4 | ' |
Purchases | 122 | 14 |
Sales | -79 | ' |
Settlements | -61 | -89 |
Transfers into Level 3 | 18 | ' |
Transfers out of Level 3 | -27 | ' |
Balance, Ending, Assets | 71 | 96 |
Unrealized gains (losses) on Level 3 assets and liabilities held at balance sheet date recognized in net income (loss) | ' | ' |
Residential mortgage-backed [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' |
Balance, Beginning, Assets | 413 | 452 |
Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss) | 4 | -14 |
Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss) | -14 | 2 |
Purchases | 116 | 97 |
Sales | -10 | ' |
Settlements | -75 | -40 |
Transfers into Level 3 | 4 | ' |
Transfers out of Level 3 | -107 | -84 |
Balance, Ending, Assets | 331 | 413 |
Unrealized gains (losses) on Level 3 assets and liabilities held at balance sheet date recognized in net income (loss) | -3 | -18 |
Commercial Mortgage Backed Securities [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' |
Balance, Beginning, Assets | 129 | 59 |
Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss) | ' | 8 |
Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss) | 11 | 14 |
Purchases | 107 | 165 |
Sales | -3 | -12 |
Settlements | -11 | -28 |
Transfers into Level 3 | 21 | 13 |
Transfers out of Level 3 | -103 | -90 |
Balance, Ending, Assets | 151 | 129 |
Unrealized gains (losses) on Level 3 assets and liabilities held at balance sheet date recognized in net income (loss) | ' | ' |
Other asset-backed [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' |
Balance, Beginning, Assets | 368 | 343 |
Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss) | 5 | 11 |
Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss) | -4 | 8 |
Purchases | 314 | 615 |
Sales | -197 | -365 |
Settlements | -35 | -128 |
Transfers into Level 3 | ' | ' |
Transfers out of Level 3 | -5 | -116 |
Balance, Ending, Assets | 446 | 368 |
Unrealized gains (losses) on Level 3 assets and liabilities held at balance sheet date recognized in net income (loss) | -2 | ' |
Total asset-backed [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' |
Balance, Beginning, Assets | 910 | 854 |
Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss) | 9 | 5 |
Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss) | -7 | 24 |
Purchases | 537 | 877 |
Sales | -210 | -377 |
Settlements | -121 | -196 |
Transfers into Level 3 | 25 | 13 |
Transfers out of Level 3 | -215 | -290 |
Balance, Ending, Assets | 928 | 910 |
Unrealized gains (losses) on Level 3 assets and liabilities held at balance sheet date recognized in net income (loss) | -5 | -18 |
Redeemable Preferred Stock [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' |
Balance, Beginning, Assets | 26 | ' |
Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss) | -1 | ' |
Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss) | ' | -1 |
Purchases | ' | 53 |
Sales | ' | -26 |
Settlements | -25 | ' |
Transfers into Level 3 | ' | ' |
Transfers out of Level 3 | ' | ' |
Balance, Ending, Assets | ' | 26 |
Unrealized gains (losses) on Level 3 assets and liabilities held at balance sheet date recognized in net income (loss) | ' | ' |
Equity securities [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' |
Balance, Beginning, Assets | 34 | 67 |
Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss) | -27 | -36 |
Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss) | 3 | 6 |
Purchases | 2 | 27 |
Sales | ' | -16 |
Settlements | ' | ' |
Transfers into Level 3 | ' | ' |
Transfers out of Level 3 | -1 | -14 |
Balance, Ending, Assets | 11 | 34 |
Unrealized gains (losses) on Level 3 assets and liabilities held at balance sheet date recognized in net income (loss) | -27 | -38 |
Other invested assets, including derivatives, net | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' |
Balance, Beginning, Assets | ' | 10 |
Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss) | ' | ' |
Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss) | ' | ' |
Purchases | ' | ' |
Sales | -1 | ' |
Settlements | 1 | -10 |
Transfers into Level 3 | ' | ' |
Transfers out of Level 3 | ' | ' |
Balance, Ending, Assets | ' | ' |
Unrealized gains (losses) on Level 3 assets and liabilities held at balance sheet date recognized in net income (loss) | ' | ' |
Short-term Investments [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' |
Balance, Beginning, Assets | 6 | 27 |
Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss) | ' | ' |
Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss) | ' | ' |
Purchases | ' | 23 |
Sales | -6 | -4 |
Settlements | ' | -41 |
Transfers into Level 3 | ' | 1 |
Transfers out of Level 3 | ' | ' |
Balance, Ending, Assets | ' | 6 |
Unrealized gains (losses) on Level 3 assets and liabilities held at balance sheet date recognized in net income (loss) | ' | ' |
Life settlement contracts, included in Other assets [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' |
Balance, Beginning, Assets | 100 | 117 |
Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss) | 13 | 53 |
Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss) | ' | ' |
Purchases | ' | ' |
Sales | ' | ' |
Settlements | -25 | -70 |
Transfers into Level 3 | ' | ' |
Transfers out of Level 3 | ' | ' |
Balance, Ending, Assets | 88 | 100 |
Unrealized gains (losses) on Level 3 assets and liabilities held at balance sheet date recognized in net income (loss) | -2 | 11 |
Separate account business [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' |
Balance, Beginning, Assets | 2 | 23 |
Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss) | ' | ' |
Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss) | ' | ' |
Purchases | 1 | ' |
Sales | -2 | -21 |
Settlements | ' | ' |
Transfers into Level 3 | ' | ' |
Transfers out of Level 3 | ' | ' |
Balance, Ending, Assets | 1 | 2 |
Unrealized gains (losses) on Level 3 assets and liabilities held at balance sheet date recognized in net income (loss) | ' | ' |
Fair_Value_Narrative_Details
Fair Value (Narrative) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value Disclosures [Abstract] | ' | ' |
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | ' | $106 |
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | ' | $72 |
Fair_Value_Quantitative_inform
Fair Value (Quantitative information about significant unobservable inputs in the fair value measurement of level 3 assets) (Details) (USD $) | 12 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Fixed maturity securities [Member] | Income Approach Valuation Technique [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Assets, Fair Value Disclosure | 142 | 121 |
Fixed maturity securities [Member] | Income Approach Valuation Technique [Member] | Minimum [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Expected call date | ' | 3.3 |
Credit spread | 1.74% | ' |
Credit spread adjustment | ' | 0.02% |
Fixed maturity securities [Member] | Income Approach Valuation Technique [Member] | Maximum [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Expected call date | ' | 5.3 |
Credit spread | 19.90% | ' |
Credit spread adjustment | ' | 0.48% |
Fixed maturity securities [Member] | Income Approach Valuation Technique [Member] | Weighted Average [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Expected call date | ' | 4.3 |
Credit spread | 3.98% | ' |
Credit spread adjustment | ' | 0.17% |
Fixed maturity securities [Member] | Market Approach Valuation Technique [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Assets, Fair Value Disclosure | ' | 72 |
Fixed maturity securities [Member] | Market Approach Valuation Technique [Member] | Minimum [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Private offering price | ' | 42.39 |
Fixed maturity securities [Member] | Market Approach Valuation Technique [Member] | Maximum [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Private offering price | ' | 102.32 |
Fixed maturity securities [Member] | Market Approach Valuation Technique [Member] | Weighted Average [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Private offering price | ' | 100.11 |
Equity securities [Member] | Market Approach Valuation Technique [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Assets, Fair Value Disclosure | 10 | 34 |
Equity securities [Member] | Market Approach Valuation Technique [Member] | Minimum [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Private offering price | 360.12 | 4.54 |
Equity securities [Member] | Market Approach Valuation Technique [Member] | Maximum [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Private offering price | 4,267.66 | 3,842 |
Equity securities [Member] | Market Approach Valuation Technique [Member] | Weighted Average [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Private offering price | 1,147.95 | 571.17 |
Life settlement contracts, included in Other assets [Member] | Income Approach Valuation Technique [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Assets, Fair Value Disclosure | 88 | 100 |
Life settlement contracts, included in Other assets [Member] | Income Approach Valuation Technique [Member] | Minimum [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Mortality assumption | 70.00% | 69.00% |
Life settlement contracts, included in Other assets [Member] | Income Approach Valuation Technique [Member] | Maximum [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Mortality assumption | 743.00% | 883.00% |
Life settlement contracts, included in Other assets [Member] | Income Approach Valuation Technique [Member] | Weighted Average [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Mortality assumption | 191.60% | 208.90% |
Life settlement contracts, included in Other assets [Member] | Income Approach Valuation Technique [Member] | Rate [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Discount rate risk premium | 9.00% | 9.00% |
Fair_Value_Carrying_amount_and
Fair Value (Carrying amount and estimated fair value of financial instrument assets and liabilities which are not measured at fair value) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Financial Assets [Abstract] | ' | ' |
Notes receivable for the issuance of common stock | $23 | $21 |
Mortgage loans | 508 | 401 |
Financial Liabilities [Abstract] | ' | ' |
Short term debt | 549 | 13 |
Long term debt | 2,011 | 2,557 |
Carrying Amount [Member] | ' | ' |
Financial Assets [Abstract] | ' | ' |
Notes receivable for the issuance of common stock | 23 | 21 |
Mortgage loans | 508 | 401 |
Financial Liabilities [Abstract] | ' | ' |
Premium deposits and annuity contracts | 57 | 100 |
Short term debt | 549 | 13 |
Long term debt | 2,011 | 2,557 |
Estimated Fair Value [Member] | ' | ' |
Financial Assets [Abstract] | ' | ' |
Notes receivable for the issuance of common stock | 23 | 21 |
Mortgage loans | 515 | 418 |
Financial Liabilities [Abstract] | ' | ' |
Premium deposits and annuity contracts | 58 | 104 |
Short term debt | 575 | 13 |
Long term debt | 2,328 | 3,016 |
Level 1 [Member] | Estimated Fair Value [Member] | ' | ' |
Financial Assets [Abstract] | ' | ' |
Notes receivable for the issuance of common stock | ' | ' |
Mortgage loans | ' | ' |
Financial Liabilities [Abstract] | ' | ' |
Premium deposits and annuity contracts | ' | ' |
Short term debt | ' | ' |
Long term debt | ' | ' |
Level 2 [Member] | Estimated Fair Value [Member] | ' | ' |
Financial Assets [Abstract] | ' | ' |
Notes receivable for the issuance of common stock | ' | ' |
Mortgage loans | ' | ' |
Financial Liabilities [Abstract] | ' | ' |
Premium deposits and annuity contracts | ' | ' |
Short term debt | 575 | 13 |
Long term debt | 2,328 | 3,016 |
Level 3 [Member] | Estimated Fair Value [Member] | ' | ' |
Financial Assets [Abstract] | ' | ' |
Notes receivable for the issuance of common stock | 23 | 21 |
Mortgage loans | 515 | 418 |
Financial Liabilities [Abstract] | ' | ' |
Premium deposits and annuity contracts | 58 | 104 |
Short term debt | ' | ' |
Long term debt | ' | ' |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Federal income taxes received from (paid to) Loews | ($89) | $75 | $10 |
Unrecognized tax benefits | ' | ' | ' |
Interest income (expense) | ' | 2 | ' |
Unrecognized Tax Benefits, Income Tax Penalties Accrued | ' | ' | ' |
Accrued interest and penalties | ' | ' | ' |
Deferred tax liabilities not recognized on undistributed earnings | ' | ' | ' |
Foreign tax expense (benefit) on income from continuing operations | 24 | 34 | 27 |
Income (loss) from continuing foreign operations | 101 | 88 | 75 |
Tax Credit Carryforward, Amount | ' | ' | ' |
Operating Loss Carryforwards | ' | ' | ' |
Valuation allowance | ' | ' | ' |
Income_Taxes_Reconciliation_be
Income Taxes (Reconciliation between the Company's federal income tax (expense) benefit at statutory rates and the recorded income tax (expense) benefit) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ' | ' | ' |
Income tax expense at statutory rates | ($460) | ($305) | ($305) |
Tax benefit from tax exempt income | 97 | 84 | 74 |
Foreign taxes and credits | -1 | -13 | -3 |
Taxes related to domestic affiliate | ' | ' | -21 |
Prior year tax adjustment | ' | ' | 20 |
Other tax expense | -12 | -10 | -7 |
Income tax (expense) benefit | ($376) | ($244) | ($242) |
Income_Taxes_Current_and_defer
Income Taxes (Current and deferred components of the Company's income tax (expense) benefit) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Expense (Benefit), Continuing Operations [Abstract] | ' | ' | ' |
Current tax (expense) benefit | ($299) | ($97) | ($54) |
Deferred income tax (expense) benefit | -77 | -147 | -188 |
Income tax (expense) benefit | ($376) | ($244) | ($242) |
Income_Taxes_Significant_compo
Income Taxes (Significant components of the Company's deferred tax assets and liabilities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Deferred Tax Assets: | ' | ' |
Property and casualty claim and claim adjustment expense reserves | $289 | $352 |
Unearned premium reserves | 178 | 162 |
Receivables | 50 | 60 |
Employee benefits | 187 | 384 |
Life settlement contracts | 46 | 45 |
Deferred retroactive reinsurance benefit | 66 | ' |
Other assets | 149 | 160 |
Gross deferred tax assets | 965 | 1,163 |
Deferred Tax Liabilities: | ' | ' |
Investment valuation differences | 68 | 38 |
Deferred acquisition costs | 232 | 238 |
Net unrealized gains | 383 | 737 |
Other liabilities | 62 | 57 |
Gross deferred tax liabilities | 745 | 1,070 |
Net deferred tax asset (liability) | $220 | $93 |
Claim_and_Claim_Adjustment_Exp2
Claim and Claim Adjustment Expense Reserves (Narrative) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Catastrophe losses net of reinsurance | $169,000,000 | $391,000,000 | $222,000,000 | ' |
(Favorable) unfavorable net prior year development, Life & Group | -9,000,000 | -11,000,000 | -29,000,000 | ' |
Loss Portfolio Transfer [Member] | ' | ' | ' | ' |
Net A&EP claim and allocated claim adjustment expense reserves ceded to NICO | ' | ' | ' | 1,600,000,000 |
Aggregate limit under A&EP Loss Portfolio Transfer | ' | ' | ' | 4,000,000,000 |
A&EP claim and allocated claim adjustment expense reserves ceded under existing third party reinsurance contracts transferred to NICO under A&EP Loss Portfolio Transfer | ' | ' | ' | 1,200,000,000 |
Reinsurance premium paid to NICO under A&EP Loss Portfolio Transfer | ' | ' | ' | 2,000,000,000 |
Net reinsurance receivables transferrred to NICO under A&EP Loss Portfolio Transfer | ' | ' | ' | 215,000,000 |
Total consideration paid to NICO under AEP Loss Portfolio Transfer | ' | ' | ' | 2,200,000,000 |
Pretax impact of unrecognized deferred retroactive reinsurance benefit | 189,000,000 | ' | ' | ' |
Cumulative amounts ceded under AEP Loss Portfolio Transfer | 2,500,000,000 | ' | ' | ' |
Fair value of collateral trust account established by NICO under A&EP Loss Portfolio Transfer | $3,100,000,000 | ' | ' | ' |
Claim_and_Claim_Adjustment_Exp3
Claim and Claim Adjustment Expense Reserves (Reconcilliation of claim and claim adjustment expense reserves) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Reserves, beginning of year: | ' | ' | ' | |||
Gross | $24,763 | $24,303 | $25,496 | |||
Ceded | 5,126 | 5,020 | 6,122 | |||
Net reserves, beginning of year | 19,637 | 19,283 | 19,374 | |||
Change in net reserves due to acquisition (disposition) of subsidiaries | ' | 291 | -277 | |||
Net incurred claim and claim adjustment expenses: | ' | ' | ' | |||
Provision for insured events of current year | 5,114 | 5,273 | 4,904 | |||
Increase (decrease) in provision for insured events of prior years | -115 | -182 | -429 | |||
Amortization of discount | 154 | 145 | 135 | |||
Total net incurred (a) | 5,153 | [1] | 5,236 | [1] | 4,610 | [1] |
Net payments attributable to: | ' | ' | ' | |||
Current year events | -981 | -988 | -1,029 | |||
Prior year events | -4,588 | -4,280 | -3,473 | |||
Total net payments | -5,569 | -5,268 | -4,502 | |||
Foreign currency translation adjustment and other | -104 | 95 | 78 | |||
Net reserves, end of year | 19,117 | 19,637 | 19,283 | |||
Ceded reserves, end of year | 4,972 | 5,126 | 5,020 | |||
Gross reserves, end of year | $24,089 | $24,763 | $24,303 | |||
[1] | Total net incurred above does not agree to Insurance claims and policyholders' benefits as reflected on the Consolidated Statements of Operations due to amounts related to retroactive reinsurance deferred gain accounting, uncollectible reinsurance and loss deductible receivables, and benefit expenses related to future policy benefits and policyholders' funds, which are not reflected in the table above. |
Claim_and_Claim_Adjustment_Exp4
Claim and Claim Adjustment Expense Reserves (Net prior year claim and claim adjustment expense reserve development) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Increase (decrease) in provision for insured events of prior years | ($115) | ($182) | ($429) |
Property and casualty reserve development [Member] | ' | ' | ' |
Increase (decrease) in provision for insured events of prior years | -115 | -180 | -429 |
Life reserve development in life company [Member] | ' | ' | ' |
Increase (decrease) in provision for insured events of prior years | ' | ($2) | ' |
Claim_and_Claim_Adjustment_Exp5
Claim and Claim Adjustment Expense Reserves (Gross and net carried claim and claim adjustment expense reserves) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Millions, unless otherwise specified | ||||
Gross Case Reserves | $12,262 | $12,668 | ' | ' |
Gross IBNR Reserves | 11,827 | 12,095 | ' | ' |
Total Gross Carried Claim and Claim Adjustment Expense Reserves | 24,089 | 24,763 | 24,303 | 25,496 |
Net Case Reserves | 10,176 | 10,356 | ' | ' |
Net IBNR Reserves | 8,941 | 9,281 | ' | ' |
Total Net Carried Claim and Claim Adjustment Expense Reserves | 19,117 | 19,637 | 19,283 | 19,374 |
CNA Specialty [Member] | ' | ' | ' | ' |
Gross Case Reserves | 2,270 | 2,292 | ' | ' |
Gross IBNR Reserves | 4,419 | 4,456 | ' | ' |
Total Gross Carried Claim and Claim Adjustment Expense Reserves | 6,689 | 6,748 | ' | ' |
Net Case Reserves | 2,024 | 2,008 | ' | ' |
Net IBNR Reserves | 4,142 | 4,104 | ' | ' |
Total Net Carried Claim and Claim Adjustment Expense Reserves | 6,166 | 6,112 | ' | ' |
CNA Commercial [Member] | ' | ' | ' | ' |
Gross Case Reserves | 5,829 | 6,146 | ' | ' |
Gross IBNR Reserves | 4,820 | 5,180 | ' | ' |
Total Gross Carried Claim and Claim Adjustment Expense Reserves | 10,649 | 11,326 | ' | ' |
Net Case Reserves | 5,358 | 5,611 | ' | ' |
Net IBNR Reserves | 4,269 | 4,600 | ' | ' |
Total Net Carried Claim and Claim Adjustment Expense Reserves | 9,627 | 10,211 | ' | ' |
Hardy [Member] | ' | ' | ' | ' |
Gross Case Reserves | 275 | 333 | ' | ' |
Gross IBNR Reserves | 111 | 188 | ' | ' |
Total Gross Carried Claim and Claim Adjustment Expense Reserves | 386 | 521 | ' | ' |
Net Case Reserves | 159 | 192 | ' | ' |
Net IBNR Reserves | 75 | 82 | ' | ' |
Total Net Carried Claim and Claim Adjustment Expense Reserves | 234 | 274 | ' | ' |
Life and Group Non-Core [Member] | ' | ' | ' | ' |
Gross Case Reserves | 2,748 | 2,690 | ' | ' |
Gross IBNR Reserves | 310 | 316 | ' | ' |
Total Gross Carried Claim and Claim Adjustment Expense Reserves | 3,058 | 3,006 | ' | ' |
Net Case Reserves | 2,352 | 2,253 | ' | ' |
Net IBNR Reserves | 271 | 275 | ' | ' |
Total Net Carried Claim and Claim Adjustment Expense Reserves | 2,623 | 2,528 | ' | ' |
Corporate and Other [Member] | ' | ' | ' | ' |
Gross Case Reserves | 1,140 | 1,207 | ' | ' |
Gross IBNR Reserves | 2,167 | 1,955 | ' | ' |
Total Gross Carried Claim and Claim Adjustment Expense Reserves | 3,307 | 3,162 | ' | ' |
Net Case Reserves | 283 | 292 | ' | ' |
Net IBNR Reserves | 184 | 220 | ' | ' |
Total Net Carried Claim and Claim Adjustment Expense Reserves | $467 | $512 | ' | ' |
Claim_and_Claim_Adjustment_Exp6
Claim and Claim Adjustment Expense Reserves (Net prior year development) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development, excluding Life & Group | ($118) | ($205) | ($423) |
Pretax (favorable) unfavorable premium development, excluding Life & Group | -42 | -46 | -8 |
Total pretax (favorable) unfavorable net prior year development, excluding Life & Group | -160 | -251 | -431 |
CNA Specialty [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development, excluding Life & Group | -230 | -135 | -217 |
Pretax (favorable) unfavorable premium development, excluding Life & Group | -17 | -15 | -28 |
Total pretax (favorable) unfavorable net prior year development, excluding Life & Group | -247 | -150 | -245 |
CNA Commercial [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development, excluding Life & Group | 104 | -46 | -204 |
Pretax (favorable) unfavorable premium development, excluding Life & Group | -9 | -35 | 21 |
Total pretax (favorable) unfavorable net prior year development, excluding Life & Group | 95 | -81 | -183 |
Hardy [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development, excluding Life & Group | 14 | -11 | ' |
Pretax (favorable) unfavorable premium development, excluding Life & Group | -17 | 3 | ' |
Total pretax (favorable) unfavorable net prior year development, excluding Life & Group | -3 | -8 | ' |
Corporate and Other [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development, excluding Life & Group | -6 | -13 | -2 |
Pretax (favorable) unfavorable premium development, excluding Life & Group | 1 | 1 | -1 |
Total pretax (favorable) unfavorable net prior year development, excluding Life & Group | ($5) | ($12) | ($3) |
Claim_and_Claim_Adjustment_Exp7
Claim and Claim Adjustment Expense Reserves (Net prior year claim and allocated claim adjustment expense reserve development for CNA Specialty segment) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development, excluding Life & Group | ($118) | ($205) | ($423) |
CNA Specialty [Member] | ' | ' | ' |
Medical Professional Liability | -35 | -32 | -92 |
Other Professional Liability and Management Liability | -101 | -22 | -78 |
Surety | -74 | -63 | -47 |
Warranty | -3 | -5 | -13 |
Other | -17 | -13 | 13 |
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development, excluding Life & Group | ($230) | ($135) | ($217) |
Claim_and_Claim_Adjustment_Exp8
Claim and Claim Adjustment Expense Reserves (Net prior year claim and allocated claim adjustment expense reserve development for CNA Commercial segment) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development, excluding Life & Group | ($118) | ($205) | ($423) |
CNA Commercial [Member] | ' | ' | ' |
Commercial Auto | 15 | 27 | -98 |
General Liability | 59 | -64 | -39 |
Workers' Compensation | 92 | 15 | 36 |
Property and Other | -62 | -24 | -103 |
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development, excluding Life & Group | $104 | ($46) | ($204) |
Claim_and_Claim_Adjustment_Exp9
Claim and Claim Adjustment Expense Reserves Net prior year claim and allocated claim adjustment expense reserve development for Hardy segment (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development, excluding Life & Group | ($118) | ($205) | ($423) |
Hardy [Member] | ' | ' | ' |
Marine and Aviation | 2 | ' | ' |
Non-Marine Property | 12 | -7 | ' |
Property Treaty | -5 | -3 | ' |
Specialty | -6 | -1 | ' |
Commutation | 11 | ' | ' |
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development, excluding Life & Group | $14 | ($11) | ' |
Recovered_Sheet1
Claim and Claim Adjustment Expense Reserves (Impact of Loss Portfolio Transfer on the Consolidated Statement of Operations) (Details) (Loss Portfolio Transfer [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Loss Portfolio Transfer [Member] | ' | ' | ' |
Net AEP adverse development before consideration of LPT | $363 | $261 | $84 |
Provision for uncollectible third-party reinsurance on AEP | 140 | ' | ' |
Additional amounts ceded under LPT | 503 | 261 | 84 |
Retroactive reinsurance benefit recognized | -314 | -261 | -84 |
Pretax impact of unrecognized deferred retroactive reinsurance benefit | $189 | ' | ' |
Reinsurance_Narrative_Details
Reinsurance (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Funds held under reinsurance agreements, liability | $3,900 | $3,700 | ' |
Reinsurance recoveries reported in insurance claims and policyholders' benefits reported on the Consolidated Statement of Operations | 1,527 | 1,514 | 1,285 |
Ceded claim and claim adjustment expense reserves, future policy benefits and policyholder funds as the result of business operations sold in prior years | 1,066 | 1,131 | ' |
Subsidiaries of Berkshire Hathaway Group [Member] | ' | ' | ' |
Largest Recoverables From Single Reinsurer | 2,900 | ' | ' |
Subsidiaries of Swiss Re Group [Member] | ' | ' | ' |
Largest Recoverables From Single Reinsurer | 850 | ' | ' |
Subsidiaries of Hartford Insurance Group [Member] | ' | ' | ' |
Largest Recoverables From Single Reinsurer | 350 | ' | ' |
Significant Captive Program [Member] | ' | ' | ' |
Direct and ceded earned premiums | 2,156 | 1,794 | 1,500 |
Reinsurance recoveries reported in insurance claims and policyholders' benefits reported on the Consolidated Statement of Operations | $712 | $814 | $790 |
Reinsurance_Components_of_Rein
Reinsurance (Components of Reinsurance Receivables) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Millions, unless otherwise specified | ||||
Reinsurance Disclosures [Abstract] | ' | ' | ' | ' |
Ceded claim and claim adjustment expenses | $4,972 | $5,126 | $5,020 | $6,122 |
Ceded future policy benefits | 733 | 759 | ' | ' |
Ceded policyholders' funds | 35 | 35 | ' | ' |
Reinsurance receivables related to paid losses | 348 | 311 | ' | ' |
Reinsurance receivables | 6,088 | 6,231 | ' | ' |
Allowance for uncollectible reinsurance | -71 | -73 | ' | ' |
Reinsurance receivables, net of allowance for uncollectible reinsurance | $6,017 | $6,158 | ' | ' |
Reinsurance_Components_of_Earn
Reinsurance (Components of Earned Premiums) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Direct premiums earned | $9,624 | $8,919 | $8,434 |
Assumed premiums earned | 306 | 244 | 145 |
Ceded premiums earned | 2,659 | 2,281 | 1,976 |
Net earned premiums | 7,271 | 6,882 | 6,603 |
Property and Casualty Insurance [Member] | ' | ' | ' |
Direct premiums earned | 9,063 | 8,354 | 7,858 |
Assumed premiums earned | 258 | 197 | 95 |
Ceded premiums earned | 2,609 | 2,229 | 1,919 |
Net earned premiums | 6,712 | 6,322 | 6,034 |
Accident and Health Insurance [Member] | ' | ' | ' |
Direct premiums earned | 512 | 514 | 521 |
Assumed premiums earned | 48 | 47 | 50 |
Ceded premiums earned | 1 | 1 | 2 |
Net earned premiums | 559 | 560 | 569 |
Life Insurance [Member] | ' | ' | ' |
Direct premiums earned | 49 | 51 | 55 |
Assumed premiums earned | ' | ' | ' |
Ceded premiums earned | 49 | 51 | 55 |
Net earned premiums | ' | ' | ' |
Percentage of assumed premiums earned to net premiums earned [Member] | ' | ' | ' |
Percentage of assumed premium earned to premium earned net | 4.20% | 3.50% | 2.20% |
Percentage of assumed premiums earned to net premiums earned [Member] | Property and Casualty Insurance [Member] | ' | ' | ' |
Percentage of assumed premium earned to premium earned net | 3.80% | 3.10% | 1.60% |
Percentage of assumed premiums earned to net premiums earned [Member] | Accident and Health Insurance [Member] | ' | ' | ' |
Percentage of assumed premium earned to premium earned net | 8.60% | 8.40% | 8.80% |
Percentage of assumed premiums earned to net premiums earned [Member] | Life Insurance [Member] | ' | ' | ' |
Percentage of assumed premium earned to premium earned net | ' | ' | ' |
Reinsurance_Components_of_Writ
Reinsurance (Components of Written Premiums) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Direct premiums written | $9,658 | $9,025 | $8,560 | |||
Assumed premiums written | 296 | 216 | 152 | |||
Ceded premiums written | 2,606 | 2,277 | 1,914 | |||
Net written premiums | 7,348 | [1] | 6,964 | [1] | 6,798 | [1] |
Property and Casualty Insurance [Member] | ' | ' | ' | |||
Direct premiums written | 9,103 | 8,467 | 7,976 | |||
Assumed premiums written | 249 | 169 | 102 | |||
Ceded premiums written | 2,556 | 2,225 | 1,857 | |||
Net written premiums | 6,796 | 6,411 | 6,221 | |||
Accident and Health Insurance [Member] | ' | ' | ' | |||
Direct premiums written | 506 | 507 | 529 | |||
Assumed premiums written | 47 | 47 | 50 | |||
Ceded premiums written | 1 | 1 | 2 | |||
Net written premiums | 552 | 553 | 577 | |||
Life Insurance [Member] | ' | ' | ' | |||
Direct premiums written | 49 | 51 | 55 | |||
Assumed premiums written | ' | ' | ' | |||
Ceded premiums written | 49 | 51 | 55 | |||
Net written premiums | ' | ' | ' | |||
Percentage of assumed premiums written to net premiums written [Member] | ' | ' | ' | |||
Percentage of assumed premium written to premium written net | 4.00% | 3.10% | 2.20% | |||
Percentage of assumed premiums written to net premiums written [Member] | Property and Casualty Insurance [Member] | ' | ' | ' | |||
Percentage of assumed premium written to premium written net | 3.70% | 2.60% | 1.60% | |||
Percentage of assumed premiums written to net premiums written [Member] | Accident and Health Insurance [Member] | ' | ' | ' | |||
Percentage of assumed premium written to premium written net | 8.50% | 8.50% | 8.70% | |||
Percentage of assumed premiums written to net premiums written [Member] | Life Insurance [Member] | ' | ' | ' | |||
Percentage of assumed premium written to premium written net | ' | ' | ' | |||
[1] | (a)Related to business in property and casualty companies only. |
Reinsurance_Components_of_Life
Reinsurance (Components of Life Insurance Inforce) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reinsurance Disclosures [Abstract] | ' | ' | ' |
Life Insurance Inforce, Direct | $5,127 | $5,713 | $6,528 |
Life Insurance Inforce, Assumed | ' | ' | ' |
Life Insurance Inforce, Ceded | 5,118 | 5,702 | 6,515 |
Life Insurance Inforce, Net | $9 | $11 | $13 |
Debt_Narrative_Details
Debt (Narrative) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Debt Disclosure [Abstract] | ' |
Federal Home Loan Bank Stock | $16 |
Federal Home Loan Bank, Advances, General Debt Obligations, Maximum Amount Available | 330 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | ' |
Line of Credit, Current borrowing capacity | 250 |
Line of Credit, Additional borrowing capacity available | 100 |
Line of Credit, Minimum Net Worth Required for Compliance | 8,200 |
Line of Credit, Amount Outstanding | ' |
Debt_Schedule_of_debt_instrume
Debt (Schedule of debt instruments) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Short term debt | $549 | $13 |
Long term debt | 2,011 | 2,557 |
Total debt | 2,560 | 2,570 |
Senior notes 5.850%, face amount $549, due December 15, 2014 | ' | ' |
Long term debt | ' | 548 |
Senior notes 6.500%, face amount of $350, due August 15, 2016 | ' | ' |
Long term debt | 349 | 348 |
Senior notes 6.950%, face amount $150, due January 15, 2018 | ' | ' |
Long term debt | 149 | 149 |
Senior notes 7.350%, face amount $350, due November 15, 2019 | ' | ' |
Long term debt | 348 | 348 |
Senior notes 5.875%, face amount $500, due August 15, 2020 | ' | ' |
Long term debt | 497 | 496 |
Senior notes 5.750%, face amount $400, due August 15, 2021 | ' | ' |
Long term debt | 397 | 397 |
Debenture of CNAF, 7.250%, face amount of $243, due November 15, 2023 | ' | ' |
Long term debt | 241 | 241 |
Subordinated variable rate debt of Hardy, face amount of $30, due September 15, 2036 | ' | ' |
Long term debt | 30 | 30 |
Other debt | ' | ' |
Short term debt | ' | 13 |
Senior notes 5.850%, face amount $549, due December 15, 2014 | ' | ' |
Short term debt | $549 | ' |
Debt_Maturity_of_debt_Details
Debt (Maturity of debt) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Debt Disclosure [Abstract] | ' | ' |
Repayments of principal in the next twelve months | $549 | ' |
Repayments of principal in year two | ' | ' |
Repayments of principal in year three | 350 | ' |
Repayments of principal in year four | ' | ' |
Repayments of principal in year five | 150 | ' |
Repayments of principal after year five | 1,523 | ' |
Less discount | -12 | ' |
Total debt | $2,560 | $2,570 |
Benefit_Plans_Narrative_detail
Benefit Plans (Narrative) (details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Future capital call commitments for limited partnership investments | $381 | ' | ' |
Share-based compensation arrangement by share-based payment award, number of shares authorized | 6 | ' | ' |
Share-based compensation arrangement by share-based payment award, number of shares available for grant | 1.5 | ' | ' |
Allocated share-based compensation expense | 10 | 9 | 6 |
Employee service share-based compensation, tax benefit from compensation expense | 3 | 3 | 2 |
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized | 14 | ' | ' |
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized, period for recognition | '1 year 8 months 15 days | ' | ' |
Pension Plans, Defined Benefit [Member] | ' | ' | ' |
Defined benefit plan, accumulated benefit obligation | 2,889 | 3,187 | ' |
Future capital call commitments for limited partnership investments | 102 | ' | ' |
Limited partnership equity related hedge fund strategy plan assets | 58.00% | ' | ' |
Limited partnership hedge fund multi strategy plan assets | 37.00% | ' | ' |
Limited partnership hedge fund strategy distressed investments plan assets | 5.00% | ' | ' |
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | 56 | ' | ' |
Cost of Living Adjustment [Member] | ' | ' | ' |
Assumptions used in calculating assumed health care cost trend rate | 4.00% | ' | ' |
Employer Subsidy on Health Care Costs [Member] | ' | ' | ' |
Assumptions used in calculating assumed health care cost trend rate | 4.00% | ' | ' |
Other Postretirement Benefit Plan, Defined Benefit [Member] | ' | ' | ' |
Defined benefit plan, health care cost trend rate assumed for next fiscal year | 4.00% | 4.00% | 4.00% |
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | 5 | ' | ' |
First Year of Employment [Member] | ' | ' | ' |
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 35.00% | ' | ' |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 6.00% | ' | ' |
Defined Contribution Pension [Member] | ' | ' | ' |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 20.00% | ' | ' |
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 70.00% | ' | ' |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 6.00% | ' | ' |
Defined Contribution Plan, Employers Matching Contribution, Vesting Period in Years | '5 | ' | ' |
Liability of the CNA Savings Plan included in Separate account liabilities on the Consolidated Balance Sheets | 129 | 256 | ' |
Company Contribution of Eligible Compensation, Depending on Age, Percent | '3% or 5% | ' | ' |
Benefit expense for the Company's savings plan | $71 | $70 | $60 |
Additional Contribution, Management Discretion [Member] | ' | ' | ' |
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 80.00% | ' | ' |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 6.00% | ' | ' |
Defined Contribution Plan, Employers Matching Contribution, Vesting Period in Years | '5 | ' | ' |
Defined Contribution Plan, Employer Discretionary Contribution Amount, Percent | 2.00% | ' | ' |
Stock Options and SARs [Member] | ' | ' | ' |
Vesting Period Following Date of Grant, in Years | '4 | ' | ' |
Stock Options and SARs, Maximum Term Following Date of Grant, in Years | '10 | ' | ' |
Restricted Shares [Member] | ' | ' | ' |
Vesting Period Following Date of Grant, in Years | '4 | ' | ' |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' |
Vesting Period Following Date of Grant, in Years | '4 | ' | ' |
Range of Shares Initially Granted Payable Based Upon Attainment of Specific Annual Performance Goals | '0% to 100% | ' | ' |
Performance Shares [Member] | ' | ' | ' |
Range of Shares Initially Granted Payable Based Upon Attainment of Specific Annual Performance Goals | '0% to 200% | ' | ' |
Measurement Period of Specific Annual Performance Goals, in Years | '3 | ' | ' |
Benefit_Plans_Funded_Status_De
Benefit Plans (Funded Status) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Pension Plans, Defined Benefit [Member] | ' | ' | ' |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' |
Benefit obligation at January 1 | $3,271 | $3,003 | ' |
Service cost | 12 | 12 | 13 |
Interest cost | 121 | 135 | 146 |
Participants' contributions | ' | ' | ' |
Actuarial (gain) loss | -289 | 266 | ' |
Benefits paid | -165 | -164 | ' |
Settlements | -8 | ' | ' |
Foreign currency translation and other | 1 | 19 | ' |
Benefit obligation at December 31 | 2,943 | 3,271 | 3,003 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets at January 1 | 2,425 | 2,212 | ' |
Actual return on plan assets | 311 | 245 | ' |
Company contributions | 92 | 115 | ' |
Participants' contributions | ' | ' | ' |
Benefits paid | -165 | -164 | ' |
Settlements | -8 | ' | ' |
Foreign currency translation and other | 1 | 17 | ' |
Fair value of plan assets at December 31 | 2,656 | 2,425 | 2,212 |
Defined Benefit Plan, Funded Status of Plan [Abstract] | ' | ' | ' |
Funded status | -287 | -846 | ' |
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract] | ' | ' | ' |
Other assets | 9 | ' | ' |
Other liabilities | -296 | -846 | ' |
Net amount recognized on balance sheets | -287 | -846 | ' |
Amounts recognized in Accumulated other comprehensive income not yet recognized in net periodic cost (benefit)[Abstract] | ' | ' | ' |
Prior service credit | ' | ' | ' |
Net actuarial (gain) loss | 745 | 1,213 | ' |
Net amount recognized in Accumulated other comprehensive income | 745 | 1,213 | ' |
Other Postretirement Benefit Plan, Defined Benefit [Member] | ' | ' | ' |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' |
Benefit obligation at January 1 | 47 | 49 | ' |
Service cost | 1 | ' | 1 |
Interest cost | 1 | 2 | 3 |
Participants' contributions | 5 | 5 | ' |
Actuarial (gain) loss | -3 | 3 | ' |
Benefits paid | -12 | -12 | ' |
Settlements | ' | ' | ' |
Foreign currency translation and other | 1 | ' | ' |
Benefit obligation at December 31 | 40 | 47 | 49 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets at January 1 | ' | ' | ' |
Actual return on plan assets | ' | ' | ' |
Company contributions | 7 | 7 | ' |
Participants' contributions | 5 | 5 | ' |
Benefits paid | -12 | -12 | ' |
Settlements | ' | ' | ' |
Foreign currency translation and other | ' | ' | ' |
Fair value of plan assets at December 31 | ' | ' | ' |
Defined Benefit Plan, Funded Status of Plan [Abstract] | ' | ' | ' |
Funded status | -40 | -47 | ' |
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract] | ' | ' | ' |
Other assets | ' | ' | ' |
Other liabilities | -40 | -47 | ' |
Net amount recognized on balance sheets | -40 | -47 | ' |
Amounts recognized in Accumulated other comprehensive income not yet recognized in net periodic cost (benefit)[Abstract] | ' | ' | ' |
Prior service credit | -98 | -116 | ' |
Net actuarial (gain) loss | 8 | 11 | ' |
Net amount recognized in Accumulated other comprehensive income | ($90) | ($105) | ' |
Benefit_Plans_Components_of_ne
Benefit Plans (Components of net periodic cost (benefit)) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Pension Plans, Defined Benefit [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service cost | $12 | $12 | $13 |
Interest cost on projected benefit obligation | 121 | 135 | 146 |
Expected return on plan assets | -181 | -171 | -172 |
Amortization of net actuarial (gain) loss | 47 | 39 | 25 |
Settlement loss | 3 | ' | ' |
Net periodic (benefit) cost | 2 | 15 | 12 |
Other Postretirement Benefit Plans, Defined Benefit [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service cost | 1 | ' | 1 |
Interest cost on projected benefit obligation | 1 | 2 | 3 |
Amortization of prior service credit | -18 | -18 | -19 |
Amortization of net actuarial (gain) loss | 2 | 1 | ' |
Net periodic (benefit) cost | ($14) | ($15) | ($15) |
Benefit_Plans_Schedule_of_amou
Benefit Plans (Schedule of amounts recognized in Other comprehensive income) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax, [Abstract] | ' | ' | ' |
Amounts arising during the period | $422 | ($195) | ($325) |
Reclassification adjustment relating to prior service cost (credit) | -18 | -18 | -19 |
Reclassification adjustment relating to actuarial (gain) loss | 49 | 40 | 25 |
Total increase (decrease) in Other comprehensive income | $453 | ($173) | ($319) |
Benefit_Plans_Schedule_of_esti
Benefit Plans (Schedule of estimated amounts to be recognized from Accumulated other comprehensive income into net periodic cost (benefit) during next fiscal year) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Pension Plans, Defined Benefit [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Amortization of prior service cost (credit) | ' |
Amortization of net actuarial (gain) loss | 25 |
Total estimated amounts to be recognized | 25 |
Other Postretirement Benefit Plan, Defined Benefit [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Amortization of prior service cost (credit) | -18 |
Amortization of net actuarial (gain) loss | ' |
Total estimated amounts to be recognized | ($18) |
Benefit_Plans_Actuarial_Assump
Benefit Plans (Actuarial Assumptions for Benefit Obligations) (Details) | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Plans, Defined Benefit [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Discount rate | 4.65% | 3.80% |
Expected long term rate of return | 7.50% | 7.75% |
Rate of compensation increases | 3.99% | 4.07% |
Other Postretirement Benefit Plan, Defined Benefit [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Discount rate | 3.60% | 2.80% |
Benefit_Plans_Actuarial_Assump1
Benefit Plans (Actuarial Assumptions for Net Cost or Benefit) (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Pension Plans, Defined Benefit [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Discount rate | 3.80% | 4.60% | 5.38% |
Expected long term rate of return | 7.75% | 8.00% | 8.00% |
Rate of compensation increases | 4.07% | 4.13% | 5.03% |
Other Postretirement Benefit Plan, Defined Benefit [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Discount rate | 2.80% | 3.75% | 4.38% |
Benefit_Plans_Fair_Value_of_Pl
Benefit Plans (Fair Value of Plan Assets Measured on a Recurring Basis) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Corporate and other bonds [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | $520 | $447 | ' |
Corporate and other bonds [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | ' | ' | ' |
Corporate and other bonds [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | 505 | 436 | ' |
Corporate and other bonds [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | 15 | 11 | 10 |
States, municipalities and political subdivisions [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | 73 | 91 | ' |
States, municipalities and political subdivisions [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | ' | ' | ' |
States, municipalities and political subdivisions [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | 73 | 91 | ' |
States, municipalities and political subdivisions [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | ' | ' | ' |
Residential mortgage-backed [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | 130 | 161 | ' |
Residential mortgage-backed [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | ' | ' | ' |
Residential mortgage-backed [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | 130 | 161 | ' |
Residential mortgage-backed [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | ' | ' | ' |
Commercial Mortgage Backed Securities [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | 106 | 105 | ' |
Commercial Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | ' | ' | ' |
Commercial Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | 106 | 105 | ' |
Commercial Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | ' | ' | ' |
Other asset-backed [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | 12 | ' | ' |
Other asset-backed [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | ' | ' | ' |
Other asset-backed [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | 12 | ' | ' |
Other asset-backed [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | ' | ' | ' |
Total asset-backed [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | 248 | 266 | ' |
Total asset-backed [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | ' | ' | ' |
Total asset-backed [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | 248 | 266 | ' |
Total asset-backed [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | ' | ' | ' |
Fixed Maturities [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | 841 | 804 | ' |
Fixed Maturities [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | ' | ' | ' |
Fixed Maturities [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | 826 | 793 | ' |
Fixed Maturities [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | 15 | 11 | 10 |
Equity securities [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | 605 | 493 | ' |
Equity securities [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | 480 | 386 | ' |
Equity securities [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | 117 | 102 | ' |
Equity securities [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | 8 | 5 | 5 |
Derivative Financial Instruments, Assets [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | 2 | 1 | ' |
Derivative Financial Instruments, Assets [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | 2 | 1 | ' |
Derivative Financial Instruments, Assets [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | ' | ' | ' |
Derivative Financial Instruments, Assets [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | ' | ' | ' |
Short-term Investments [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | 94 | 119 | ' |
Short-term Investments [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | 45 | 37 | ' |
Short-term Investments [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | 49 | 82 | ' |
Short-term Investments [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | ' | ' | ' |
Hedge Funds [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | 969 | 896 | ' |
Hedge Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | ' | ' | ' |
Hedge Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | 647 | 537 | ' |
Hedge Funds [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | 322 | 359 | 330 |
Private Equity Funds [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | 114 | 62 | ' |
Private Equity Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | ' | ' | ' |
Private Equity Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | ' | ' | ' |
Private Equity Funds [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | 114 | 62 | 65 |
Total limited partnerships [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | 1,083 | 958 | ' |
Total limited partnerships [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | ' | ' | ' |
Total limited partnerships [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | 647 | 537 | ' |
Total limited partnerships [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | 436 | 421 | 395 |
Other Assets [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | 31 | 40 | ' |
Other Assets [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | ' | ' | ' |
Other Assets [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | 31 | 40 | ' |
Other Assets [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | ' | ' | ' |
Investment Contracts with Insurance Company [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | ' | 10 | ' |
Investment Contracts with Insurance Company [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | ' | ' | ' |
Investment Contracts with Insurance Company [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | ' | ' | ' |
Investment Contracts with Insurance Company [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | ' | 10 | 10 |
Total assets [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | 2,656 | 2,425 | ' |
Total assets [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | 527 | 424 | ' |
Total assets [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | 1,670 | 1,554 | ' |
Total assets [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ' |
Defined benefit plan disclosure [Line items] | ' | ' | ' |
Fair value of plan assets | $459 | $447 | $420 |
Benefit_Plans_Reconciliation_o
Benefit Plans (Reconciliation of Level 3 Plan Assets) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Corporate and other bonds [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets at December 31 | $520 | $447 |
Fixed Maturities [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets at December 31 | 841 | 804 |
Equity securities [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets at December 31 | 605 | 493 |
Hedge Funds [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets at December 31 | 969 | 896 |
Private Equity Funds [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets at December 31 | 114 | 62 |
Total limited partnerships [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets at December 31 | 1,083 | 958 |
Investment Contracts with Insurance Company [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets at December 31 | ' | 10 |
Total assets [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets at December 31 | 2,656 | 2,425 |
Fair Value, Inputs, Level 3 [Member] | Corporate and other bonds [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets at January 1 | 11 | 10 |
Defined Benefit Plan, Actual Return on Plan Assets Still Held | -1 | 1 |
Defined Benefit Plan, Actual Return on Plan Assets Sold During Period | ' | ' |
Defined Benefit Plan, Purchases, Sales, and Settlements | 5 | ' |
Defined Benefit Plan, Net transfers into (out of) Level 3 | ' | ' |
Fair value of plan assets at December 31 | 15 | 11 |
Fair Value, Inputs, Level 3 [Member] | Fixed Maturities [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets at January 1 | 11 | 10 |
Defined Benefit Plan, Actual Return on Plan Assets Still Held | ' | 1 |
Defined Benefit Plan, Actual Return on Plan Assets Sold During Period | -1 | ' |
Defined Benefit Plan, Purchases, Sales, and Settlements | 5 | ' |
Defined Benefit Plan, Net transfers into (out of) Level 3 | ' | ' |
Fair value of plan assets at December 31 | 15 | 11 |
Fair Value, Inputs, Level 3 [Member] | Equity securities [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets at January 1 | 5 | 5 |
Defined Benefit Plan, Actual Return on Plan Assets Still Held | 3 | ' |
Defined Benefit Plan, Actual Return on Plan Assets Sold During Period | ' | ' |
Defined Benefit Plan, Purchases, Sales, and Settlements | ' | ' |
Defined Benefit Plan, Net transfers into (out of) Level 3 | ' | ' |
Fair value of plan assets at December 31 | 8 | 5 |
Fair Value, Inputs, Level 3 [Member] | Hedge Funds [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets at January 1 | 359 | 330 |
Defined Benefit Plan, Actual Return on Plan Assets Still Held | 56 | 41 |
Defined Benefit Plan, Actual Return on Plan Assets Sold During Period | ' | 3 |
Defined Benefit Plan, Purchases, Sales, and Settlements | -77 | -15 |
Defined Benefit Plan, Net transfers into (out of) Level 3 | -16 | ' |
Fair value of plan assets at December 31 | 322 | 359 |
Fair Value, Inputs, Level 3 [Member] | Private Equity Funds [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets at January 1 | 62 | 65 |
Defined Benefit Plan, Actual Return on Plan Assets Still Held | ' | 8 |
Defined Benefit Plan, Actual Return on Plan Assets Sold During Period | ' | ' |
Defined Benefit Plan, Purchases, Sales, and Settlements | 52 | -11 |
Defined Benefit Plan, Net transfers into (out of) Level 3 | ' | ' |
Fair value of plan assets at December 31 | 114 | 62 |
Fair Value, Inputs, Level 3 [Member] | Total limited partnerships [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets at January 1 | 421 | 395 |
Defined Benefit Plan, Actual Return on Plan Assets Still Held | 56 | 49 |
Defined Benefit Plan, Actual Return on Plan Assets Sold During Period | ' | 3 |
Defined Benefit Plan, Purchases, Sales, and Settlements | -25 | -26 |
Defined Benefit Plan, Net transfers into (out of) Level 3 | -16 | ' |
Fair value of plan assets at December 31 | 436 | 421 |
Fair Value, Inputs, Level 3 [Member] | Investment Contracts with Insurance Company [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets at January 1 | 10 | 10 |
Defined Benefit Plan, Actual Return on Plan Assets Still Held | ' | ' |
Defined Benefit Plan, Actual Return on Plan Assets Sold During Period | ' | ' |
Defined Benefit Plan, Purchases, Sales, and Settlements | -10 | ' |
Defined Benefit Plan, Net transfers into (out of) Level 3 | ' | ' |
Fair value of plan assets at December 31 | ' | 10 |
Fair Value, Inputs, Level 3 [Member] | Total assets [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets at January 1 | 447 | 420 |
Defined Benefit Plan, Actual Return on Plan Assets Still Held | 58 | 50 |
Defined Benefit Plan, Actual Return on Plan Assets Sold During Period | ' | 3 |
Defined Benefit Plan, Purchases, Sales, and Settlements | -30 | -26 |
Defined Benefit Plan, Net transfers into (out of) Level 3 | -16 | ' |
Fair value of plan assets at December 31 | $459 | $447 |
Benefit_Plans_Estimated_Future
Benefit Plans (Estimated Future Minimum Benefit Payments to Participants) (Details) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Pension Plans, Defined Benefit [Member] | ' |
Defined benefit plan disclosure [Line items] | ' |
Defined Benefit Plan, Expected Future Benefit Payments in Year One | $189 |
Defined Benefit Plan, Expected Future Benefit Payments in Year Two | 191 |
Defined Benefit Plan, Expected Future Benefit Payments in Year Three | 194 |
Defined Benefit Plan, Expected Future Benefit Payments in Year Four | 199 |
Defined Benefit Plan, Expected Future Benefit Payments in Year Five | 203 |
Defined Benefit Plan, Expected Future Benefit Payments in Five Fiscal Years Thereafter | 1,013 |
Other Postretirement Benefit Plan, Defined Benefit [Member] | ' |
Defined benefit plan disclosure [Line items] | ' |
Defined Benefit Plan, Expected Future Benefit Payments in Year One | 5 |
Defined Benefit Plan, Expected Future Benefit Payments in Year Two | 4 |
Defined Benefit Plan, Expected Future Benefit Payments in Year Three | 5 |
Defined Benefit Plan, Expected Future Benefit Payments in Year Four | 4 |
Defined Benefit Plan, Expected Future Benefit Payments in Year Five | 4 |
Defined Benefit Plan, Expected Future Benefit Payments in Five Fiscal Years Thereafter | $14 |
Benefit_Plans_Significant_Assu
Benefit Plans (Significant Assumptions Used to Estimate Fair Value of Stock Options and SARS) (Details) | 12 Months Ended | |
Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ' | ' |
Weighted average expected life of the securities granted (in years) | '5 years 8 months 4 days | '5 years 7 months 11 days |
Estimate of the underlying common stock's volatility | 40.39% | 39.88% |
Expected dividend yield | 2.10% | 1.50% |
Risk free interest rate | 1.00% | 2.20% |
Benefit_Plans_Stock_Option_and
Benefit Plans (Stock Option and SARs Activity) (Details) (USD $) | 12 Months Ended |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Stock options and Stock appreciation rights awards outstanding at January 1 | 1,158,700 |
Weighted-average exercise price per award outstanding at January 1 | $25.93 |
Number of awards granted | ' |
Weighted-average exercise price on awards granted | ' |
Number of awards exercised | -117,950 |
Weighted-average exercise price on awards exercised | $21.19 |
Number of awards forfeited, canceled or expired | -4,100 |
Weighted-average exercise price on awards forfeited, canceled or expired | $30.66 |
Stock options and Stock appreciation rights awards outstanding at December 31 | 1,036,650 |
Weighted-average exercise price per award outstanding at December 31 | $26.45 |
Aggregate intrinsic value on awards outstanding | $17 |
Weighted-average remaining contractual term on awards outstanding | '4 years 1 month 28 days |
Number of awards outstanding, fully vested and expected to vest | 1,032,849 |
Weighted-average exercise price per award outstanding, fully vested and expected to vest | $26.45 |
Aggregate intrinsic value on awards outstanding, fully vested and expected to vest | 17 |
Weighted-average remaining contractual term on awards outstanding, fully vested and expected to vest | '4 years 1 month 25 days |
Number of awards outstanding, exercisable | 936,650 |
Weighted-average exercise price, awards outstanding, exercisable | $26.42 |
Aggregate intrinsic value, awards outstanding, exercisable | $15 |
Weighted-average remaining contractual term, awards outstanding, exercisable | '3 years 10 months 15 days |
Benefit_Plans_Weightedaverage_
Benefit Plans (Weighted-average grant date fair value for awards granted, total intrinsic value for awards exercised and total fair value for awards vested) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' |
Weighted-average grant date fair value | ' | $8.81 | $9.38 |
Total intrinsic value of awards exercised | $1,495,000 | $548,000 | $481,000 |
Fair value of awards vested | $1,000,000 | $1,000,000 | $2,000,000 |
Benefit_Plans_Restricted_Share
Benefit Plans (Restricted Shares, Performance-Based Restricted Stock Units and Performance Share Unit Activity) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Number of nonvested awards at January 1 | 882,321 |
Weighted average grant date fair value of nonvested awards at January 1 | $26.15 |
Number of awards granted | 351,364 |
Weighted average grant date fair value of awards granted | $31.80 |
Number of awards vested | -417,955 |
Weighted average grant date fair value of awards vested | $24.04 |
Number of awards forfeited, canceled or expired | -13,770 |
Weighted average grant date fair value of awards forfeited, canceled or expired | $28.72 |
Performance-based adjustment | 45,714 |
Weighted average grant date fair value of performance-based adjustment | $28.39 |
Number of nonvested awards at December 31 | 847,674 |
Weighted average grant date fair value of nonvested awards at December 31 | $29.61 |
Schedule_of_Other_Intangible_A
Schedule of Other Intangible Assets (Narrative) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Amortization of deferred acquisition costs | $1,362 | $1,274 | $1,176 | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 4 | ' | ' | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 1 | ' | ' | |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 2 | ' | ' | |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 2 | ' | ' | |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 2 | ' | ' | |
Hardy [Member] | ' | ' | ' | |
Amortization of deferred acquisition costs | 106 | 44 | [1] | ' |
Other Intangible Assets [Member] | Hardy [Member] | ' | ' | ' | |
Amortization of deferred acquisition costs | 15 | 33 | ' | |
Amortization expense included in other operating expenses | $5 | $10 | ' | |
[1] | (b)Included from date of acquisition. |
Schedule_of_Other_Intangible_A1
Schedule of Other Intangible Assets (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Indefinite-lived intangible assets | $74 | $73 |
Finite-Lived Intangible Assets | 85 | 83 |
Accumulated Amortization | 66 | 43 |
Total other intangible assets | 159 | 156 |
Total intangible assets, accumulated amortization | 66 | 43 |
Lloyds syndicate capacity [Member] | ' | ' |
Indefinite-lived intangible assets | 58 | 57 |
Agency Force [Member] | ' | ' |
Indefinite-lived intangible assets | 16 | 16 |
Value of business acquired [Member] | ' | ' |
Finite-Lived Intangible Assets | 64 | 62 |
Accumulated Amortization | 63 | 43 |
Trade name [Member] | ' | ' |
Economic useful life measured in years | '8 years | ' |
Finite-Lived Intangible Assets | 8 | 8 |
Accumulated Amortization | 2 | ' |
Distribution channel [Member] | ' | ' |
Economic useful life measured in years | '15 years | ' |
Finite-Lived Intangible Assets | 13 | 13 |
Accumulated Amortization | $1 | ' |
Minimum [Member] | Value of business acquired [Member] | ' | ' |
Economic useful life measured in years | '1 year | ' |
Maximum [Member] | Value of business acquired [Member] | ' | ' |
Economic useful life measured in years | '4 years | ' |
Operating_Leases_Commitments_a2
Operating Leases, Commitments and Contingencies, and Guarantees (Narrative) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating Leases, Commitments and Contingencies, and Guarantees [Abstract] | ' | ' | ' |
Operating leases, rent expense | $46 | $52 | $50 |
Operating leases, sublease revenue | 3 | 2 | 2 |
Maximum potential future lease payments and other related costs under guarantee on a real estate joint venture | 84 | ' | ' |
Aggregate amount of quantifiable indemnification agreements in effect for sales of business entities, assets and third party loans | 702 | ' | ' |
Recorded liabilities related to indemnification agreements | $7 | ' | ' |
Operating_Leases_Commitments_a3
Operating Leases, Commitments and Contingencies, and Guarantees (Future Minimum Lease Payments and Sublease Receipts) (Details) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Operating Leases, Commitments and Contingencies, and Guarantees [Abstract] | ' |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $37 |
Operating Leases, Future Minimum Payments, Due in Two Years | 32 |
Operating Leases, Future Minimum Payments, Due in Three Years | 29 |
Operating Leases, Future Minimum Payments, Due in Four Years | 23 |
Operating Leases, Future Minimum Payments, Due in Five Years | 17 |
Operating Leases, Future Minimum Payments, Due Thereafter | 70 |
Operating Leases, Future Minimum Payments Due | 208 |
Operating Leases, Future Minimum Payments Receivable, Current | 2 |
Operating Leases, Future Minimum Payments Receivable, in Two Years | ' |
Operating Leases, Future Minimum Payments Receivable, in Three Years | ' |
Operating Leases, Future Minimum Payments Receivable, in Four Years | ' |
Operating Leases, Future Minimum Payments Receivable, in Five Years | ' |
Operating Leases, Future Minimum Payments Receivable, Thereafter | ' |
Operating Leases, Future Minimum Payments Receivable | $2 |
Stockholders_Equity_and_Statut2
Stockholders' Equity and Statutory Accounting Practices (Narrative) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Capital Required for Capital Adequacy to Risk Weighted Assets | 265.00% | 240.00% |
Dividends payable without prior supervisory approval | $715 | ' |
Hardy [Member] | ' | ' |
Capital provided by CCC | $148 | ' |
Stockholders_Equity_and_Statut3
Stockholders' Equity and Statutory Accounting Practices Combined statutory capital and surplus and net income (loss) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Combined Continental Casualty Companies [Member] | ' | ' | ' | |||
Statutory Accounting Practices [Line Items] | ' | ' | ' | |||
Statutory capital and surplus | $11,137 | [1],[2] | $9,998 | [1] | ' | |
Statutory net income (loss) | 913 | [1],[2] | 391 | [1] | 954 | [1] |
Life Company [Member] | ' | ' | ' | |||
Statutory Accounting Practices [Line Items] | ' | ' | ' | |||
Statutory capital and surplus | 597 | [2] | 556 | ' | ||
Statutory net income (loss) | $48 | [2] | $44 | $29 | ||
[1] | Represents the combined statutory surplus of CCC and its subsidiaries, including the life company. | |||||
[2] | Information derived from the statutory-basis financial statements to be filed with insurance regulators. |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) Narrative (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' |
Pretax net unrealized gains (losses) on available-for-sale securities with OTTI losses reclassified out of AOCI and recognized in earnings | ($28) | ($83) |
Tax (expense) benefit on pretax net unrealized gains (losses) on available-for-sale securities with OTTI losses reclassified out of AOCI and recognized in earnings | 10 | 29 |
Pretax net unrealized gains (losses) on other available-for-sale securities reclassified out of AOCI and recognized in earnings | 89 | 60 |
Tax (expense) benefit on pretax net unrealized gains (losses) on other available-for-sale securities reclassified out of AOCI and recognized in earnings | ($31) | ($21) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) by Component (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Accumulated other comprehensive income (loss), beginning balance | $831 | ' |
Other comprehensive income (loss), before reclassifications | -388 | ' |
Amounts reclassified from accumulated other comprehensive income (loss) | 1 | ' |
Other comprehensive income (loss), net of tax | -389 | ' |
Accumulated other comprehensive income (loss), ending balance | 442 | ' |
Tax (expense) benefit on amounts reclassified from accumulated other comprehensive income (loss) | 1 | ' |
Tax (expense) benefit on other comprehensive income (loss) | 203 | ' |
Tax on cumulative foreign currency translation adjustment | ' | ' |
Cumulative foreign currency translation adjustment | ' | 161 |
Tax on pension and postretirement benefits | ' | 387 |
Pension and postretirement benefits | ' | -721 |
Tax on net unrealized gains (losses) on investments with OTTI losses | ' | -11 |
Net unrealized gains (losses) on investments with OTTI losses | ' | 20 |
Tax on net unrealized gains (losses) on other investments | ' | -721 |
Net unrealized gains (losses) on other investments | ' | 1,371 |
Tax on accumulated other comprehensive income (loss) | ' | -345 |
Net unrealized gains (losses) on investments with OTTI losses [Member] | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Accumulated other comprehensive income (loss), beginning balance | 20 | ' |
Other comprehensive income (loss), before reclassifications | 6 | ' |
Amounts reclassified from accumulated other comprehensive income (loss) | ' | ' |
Other comprehensive income (loss), net of tax | 6 | ' |
Accumulated other comprehensive income (loss), ending balance | 26 | ' |
Tax (expense) benefit on amounts reclassified from accumulated other comprehensive income (loss) | ' | ' |
Tax (expense) benefit on other comprehensive income (loss) | -3 | ' |
Net unrealized gains (losses) on other investments [Member] | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Accumulated other comprehensive income (loss), beginning balance | 1,371 | ' |
Other comprehensive income (loss), before reclassifications | -658 | ' |
Amounts reclassified from accumulated other comprehensive income (loss) | 21 | ' |
Other comprehensive income (loss), net of tax | -679 | ' |
Accumulated other comprehensive income (loss), ending balance | 692 | ' |
Tax (expense) benefit on amounts reclassified from accumulated other comprehensive income (loss) | -10 | ' |
Tax (expense) benefit on other comprehensive income (loss) | 364 | ' |
Pension and postretirement benefits [Member] | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Accumulated other comprehensive income (loss), beginning balance | -721 | ' |
Other comprehensive income (loss), before reclassifications | 275 | ' |
Amounts reclassified from accumulated other comprehensive income (loss) | -20 | ' |
Other comprehensive income (loss), net of tax | 295 | ' |
Accumulated other comprehensive income (loss), ending balance | -426 | ' |
Tax (expense) benefit on amounts reclassified from accumulated other comprehensive income (loss) | 11 | ' |
Tax (expense) benefit on other comprehensive income (loss) | -158 | ' |
Cumulative foreign currency translation adjustment [Member] | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Accumulated other comprehensive income (loss), beginning balance | 161 | ' |
Other comprehensive income (loss), before reclassifications | -11 | ' |
Amounts reclassified from accumulated other comprehensive income (loss) | ' | ' |
Other comprehensive income (loss), net of tax | -11 | ' |
Accumulated other comprehensive income (loss), ending balance | 150 | ' |
Tax (expense) benefit on amounts reclassified from accumulated other comprehensive income (loss) | ' | ' |
Tax (expense) benefit on other comprehensive income (loss) | ' | ' |
Business_Segments_Narrative_De
Business Segments (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Business Segments [Abstract] | ' | ' | ' |
Percentage of direct foreign written premiums | 8.90% | 9.20% | 8.80% |
Business_Segments_Income_State
Business Segments (Income Statement Information) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Net written premiums | $7,348 | [1] | $6,964 | [1] | $6,798 | [1] |
Operating Revenues | ' | ' | ' | |||
Net earned premiums | 7,271 | 6,882 | 6,603 | |||
Net investment income | 2,450 | 2,282 | 2,054 | |||
Other revenues | 361 | 320 | 294 | |||
Total operating revenues | 10,082 | 9,484 | 8,951 | |||
Claims, Benefits and Expenses | ' | ' | ' | |||
Net incurred claims and benefits | 5,927 | 5,867 | 5,476 | |||
Policyholders' dividends | 20 | 29 | 13 | |||
Amortization of deferred acquisition costs | 1,362 | 1,274 | 1,176 | |||
Other insurance related expenses | 1,017 | 1,049 | 980 | |||
Other expenses | 474 | 456 | 433 | |||
Total claims, benefits and expenses | 8,800 | 8,675 | 8,078 | |||
Operating income (loss) from continuing operations before income tax | 1,282 | 809 | 873 | |||
Income tax (expense) benefit on operating income (loss) | -365 | -222 | -247 | |||
Net Operating Income (Loss), After-tax, Attributable to Noncontrolling Interests | ' | ' | -16 | |||
Net operating income (loss) from continuing operations attributable to CNA | 917 | 587 | 610 | |||
Net realized investment gains (losses), pre-tax | 31 | 63 | -2 | |||
Income tax (expense) benefit on net realized investment gains (losses) | -11 | -22 | 5 | |||
Net realized investment gains (losses), after tax | 20 | 41 | 3 | |||
Net income (loss) from continuing operations attributable to CNA | 937 | 628 | 613 | |||
CNA Specialty [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Net written premiums | 3,091 | [1] | 2,924 | [1] | 2,872 | [1] |
Operating Revenues | ' | ' | ' | |||
Net earned premiums | 3,004 | 2,898 | 2,796 | |||
Net investment income | 657 | 592 | 500 | |||
Other revenues | 257 | 230 | 221 | |||
Total operating revenues | 3,918 | 3,720 | 3,517 | |||
Claims, Benefits and Expenses | ' | ' | ' | |||
Net incurred claims and benefits | 1,704 | 1,831 | 1,657 | |||
Policyholders' dividends | 6 | 2 | -3 | |||
Amortization of deferred acquisition costs | 628 | 614 | 568 | |||
Other insurance related expenses | 272 | 301 | 294 | |||
Other expenses | 236 | 206 | 191 | |||
Total claims, benefits and expenses | 2,846 | 2,954 | 2,707 | |||
Operating income (loss) from continuing operations before income tax | 1,072 | 766 | 810 | |||
Income tax (expense) benefit on operating income (loss) | -365 | -262 | -281 | |||
Net Operating Income (Loss), After-tax, Attributable to Noncontrolling Interests | ' | ' | -12 | |||
Net operating income (loss) from continuing operations attributable to CNA | 707 | 504 | 517 | |||
Net realized investment gains (losses), pre-tax | -3 | 22 | -5 | |||
Income tax (expense) benefit on net realized investment gains (losses) | 1 | -9 | 2 | |||
Net realized investment gains (losses), after tax | -2 | 13 | -3 | |||
Net income (loss) from continuing operations attributable to CNA | 705 | 517 | 514 | |||
CNA Commercial [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Net written premiums | 3,312 | [1] | 3,373 | [1] | 3,350 | [1] |
Operating Revenues | ' | ' | ' | |||
Net earned premiums | 3,350 | 3,306 | 3,240 | |||
Net investment income | 927 | 854 | 763 | |||
Other revenues | 96 | 40 | 54 | |||
Total operating revenues | 4,373 | 4,200 | 4,057 | |||
Claims, Benefits and Expenses | ' | ' | ' | |||
Net incurred claims and benefits | 2,475 | 2,574 | 2,296 | |||
Policyholders' dividends | 7 | 11 | 8 | |||
Amortization of deferred acquisition costs | 600 | 588 | 585 | |||
Other insurance related expenses | 547 | 578 | 540 | |||
Other expenses | 26 | 36 | 53 | |||
Total claims, benefits and expenses | 3,655 | 3,787 | 3,482 | |||
Operating income (loss) from continuing operations before income tax | 718 | 413 | 575 | |||
Income tax (expense) benefit on operating income (loss) | -250 | -136 | -204 | |||
Net Operating Income (Loss), After-tax, Attributable to Noncontrolling Interests | ' | ' | -4 | |||
Net operating income (loss) from continuing operations attributable to CNA | 468 | 277 | 367 | |||
Net realized investment gains (losses), pre-tax | -13 | 38 | 16 | |||
Income tax (expense) benefit on net realized investment gains (losses) | 4 | -11 | -2 | |||
Net realized investment gains (losses), after tax | -9 | 27 | 14 | |||
Net income (loss) from continuing operations attributable to CNA | 459 | 304 | 381 | |||
Hardy [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Net written premiums | 396 | [1] | 117 | [1],[2] | ' | |
Operating Revenues | ' | ' | ' | |||
Net earned premiums | 361 | 120 | [2] | ' | ||
Net investment income | 4 | 3 | [2] | ' | ||
Other revenues | ' | 1 | [2] | ' | ||
Total operating revenues | 365 | 124 | [2] | ' | ||
Claims, Benefits and Expenses | ' | ' | ' | |||
Net incurred claims and benefits | 162 | 72 | [2] | ' | ||
Policyholders' dividends | ' | ' | [2] | ' | ||
Amortization of deferred acquisition costs | 106 | 44 | [2] | ' | ||
Other insurance related expenses | 69 | 25 | [2] | ' | ||
Other expenses | 19 | 9 | [2] | ' | ||
Total claims, benefits and expenses | 356 | 150 | [2] | ' | ||
Operating income (loss) from continuing operations before income tax | 9 | -26 | [2] | ' | ||
Income tax (expense) benefit on operating income (loss) | 1 | 3 | [2] | ' | ||
Net operating income (loss) from continuing operations attributable to CNA | 10 | -23 | [2] | ' | ||
Net realized investment gains (losses), pre-tax | 1 | -1 | [2] | ' | ||
Income tax (expense) benefit on net realized investment gains (losses) | ' | ' | [2] | ' | ||
Net realized investment gains (losses), after tax | 1 | -1 | [2] | ' | ||
Net income (loss) from continuing operations attributable to CNA | 11 | -24 | [2] | ' | ||
Life and Group Non-Core [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Net written premiums | 552 | [1] | 553 | [1] | 577 | [1] |
Operating Revenues | ' | ' | ' | |||
Net earned premiums | 559 | 560 | 569 | |||
Net investment income | 830 | 801 | 759 | |||
Other revenues | -2 | 34 | 13 | |||
Total operating revenues | 1,387 | 1,395 | 1,341 | |||
Claims, Benefits and Expenses | ' | ' | ' | |||
Net incurred claims and benefits | 1,395 | 1,406 | 1,526 | |||
Policyholders' dividends | 7 | 16 | 8 | |||
Amortization of deferred acquisition costs | 28 | 28 | 23 | |||
Other insurance related expenses | 134 | 144 | 143 | |||
Other expenses | 12 | 23 | 19 | |||
Total claims, benefits and expenses | 1,576 | 1,617 | 1,719 | |||
Operating income (loss) from continuing operations before income tax | -189 | -222 | -378 | |||
Income tax (expense) benefit on operating income (loss) | 131 | 132 | 170 | |||
Net Operating Income (Loss), After-tax, Attributable to Noncontrolling Interests | ' | ' | ' | |||
Net operating income (loss) from continuing operations attributable to CNA | -58 | -90 | -208 | |||
Net realized investment gains (losses), pre-tax | 37 | ' | -7 | |||
Income tax (expense) benefit on net realized investment gains (losses) | -13 | ' | 2 | |||
Net realized investment gains (losses), after tax | 24 | ' | -5 | |||
Net income (loss) from continuing operations attributable to CNA | -34 | -90 | -213 | |||
Corporate and Other Non-Core [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Net written premiums | -1 | [1] | -1 | [1] | 2 | [1] |
Operating Revenues | ' | ' | ' | |||
Net earned premiums | -1 | ' | 1 | |||
Net investment income | 32 | 32 | 32 | |||
Other revenues | 12 | 16 | 6 | |||
Total operating revenues | 43 | 48 | 39 | |||
Claims, Benefits and Expenses | ' | ' | ' | |||
Net incurred claims and benefits | 191 | -16 | -3 | |||
Policyholders' dividends | ' | ' | ' | |||
Amortization of deferred acquisition costs | ' | ' | ' | |||
Other insurance related expenses | -3 | 3 | 6 | |||
Other expenses | 183 | 183 | 170 | |||
Total claims, benefits and expenses | 371 | 170 | 173 | |||
Operating income (loss) from continuing operations before income tax | -328 | -122 | -134 | |||
Income tax (expense) benefit on operating income (loss) | 118 | 41 | 68 | |||
Net Operating Income (Loss), After-tax, Attributable to Noncontrolling Interests | ' | ' | ' | |||
Net operating income (loss) from continuing operations attributable to CNA | -210 | -81 | -66 | |||
Net realized investment gains (losses), pre-tax | 9 | 4 | -6 | |||
Income tax (expense) benefit on net realized investment gains (losses) | -3 | -2 | 3 | |||
Net realized investment gains (losses), after tax | 6 | 2 | -3 | |||
Net income (loss) from continuing operations attributable to CNA | -204 | -79 | -69 | |||
Eliminations [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Net written premiums | -2 | [1] | -2 | [1] | -3 | [1] |
Operating Revenues | ' | ' | ' | |||
Net earned premiums | -2 | -2 | -3 | |||
Net investment income | ' | ' | ' | |||
Other revenues | -2 | -1 | ' | |||
Total operating revenues | -4 | -3 | -3 | |||
Claims, Benefits and Expenses | ' | ' | ' | |||
Net incurred claims and benefits | ' | ' | ' | |||
Policyholders' dividends | ' | ' | ' | |||
Amortization of deferred acquisition costs | ' | ' | ' | |||
Other insurance related expenses | -2 | -2 | -3 | |||
Other expenses | -2 | -1 | ' | |||
Total claims, benefits and expenses | -4 | -3 | -3 | |||
Operating income (loss) from continuing operations before income tax | ' | ' | ' | |||
Income tax (expense) benefit on operating income (loss) | ' | ' | ' | |||
Net Operating Income (Loss), After-tax, Attributable to Noncontrolling Interests | ' | ' | ' | |||
Net operating income (loss) from continuing operations attributable to CNA | ' | ' | ' | |||
Net realized investment gains (losses), pre-tax | ' | ' | ' | |||
Income tax (expense) benefit on net realized investment gains (losses) | ' | ' | ' | |||
Net realized investment gains (losses), after tax | ' | ' | ' | |||
Net income (loss) from continuing operations attributable to CNA | ' | ' | ' | |||
[1] | (a)Related to business in property and casualty companies only. | |||||
[2] | (b)Included from date of acquisition. |
Business_Segments_Balance_Shee
Business Segments (Balance Sheet Information) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ' | ' |
Reinsurance receivables | $6,088 | $6,231 |
Insurance receivables | 2,063 | 1,983 |
Deferred acquisition costs | 624 | 598 |
Goodwill | 155 | 154 |
Insurance reserves | ' | ' |
Claim and claim adjustment expenses | 24,089 | 24,763 |
Unearned premiums | 3,718 | 3,610 |
Future policy benefits | 10,471 | 11,475 |
Policyholders’ funds | 116 | 157 |
CNA Specialty [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Reinsurance receivables | 546 | 665 |
Insurance receivables | 775 | 673 |
Deferred acquisition costs | 318 | 300 |
Goodwill | 117 | 117 |
Insurance reserves | ' | ' |
Claim and claim adjustment expenses | 6,689 | 6,748 |
Unearned premiums | 1,805 | 1,685 |
Future policy benefits | ' | ' |
Policyholders’ funds | 9 | 8 |
CNA Commercial [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Reinsurance receivables | 1,075 | 1,155 |
Insurance receivables | 1,099 | 1,116 |
Deferred acquisition costs | 257 | 269 |
Goodwill | ' | ' |
Insurance reserves | ' | ' |
Claim and claim adjustment expenses | 10,649 | 11,326 |
Unearned premiums | 1,536 | 1,569 |
Future policy benefits | ' | ' |
Policyholders’ funds | 15 | 15 |
Hardy [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Reinsurance receivables | 197 | 294 |
Insurance receivables | 176 | 181 |
Deferred acquisition costs | 49 | 29 |
Goodwill | 38 | 37 |
Insurance reserves | ' | ' |
Claim and claim adjustment expenses | 386 | 521 |
Unearned premiums | 249 | 222 |
Future policy benefits | ' | ' |
Policyholders’ funds | ' | ' |
Life and Group Non-Core [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Reinsurance receivables | 1,203 | 1,273 |
Insurance receivables | 11 | 9 |
Deferred acquisition costs | ' | ' |
Goodwill | ' | ' |
Insurance reserves | ' | ' |
Claim and claim adjustment expenses | 3,058 | 3,006 |
Unearned premiums | 128 | 134 |
Future policy benefits | 10,471 | 11,475 |
Policyholders’ funds | 92 | 134 |
Corporate and Other Non-Core [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Reinsurance receivables | 3,067 | 2,844 |
Insurance receivables | 2 | 4 |
Deferred acquisition costs | ' | ' |
Goodwill | ' | ' |
Insurance reserves | ' | ' |
Claim and claim adjustment expenses | 3,307 | 3,162 |
Unearned premiums | ' | ' |
Future policy benefits | ' | ' |
Policyholders’ funds | ' | ' |
Eliminations [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Reinsurance receivables | ' | ' |
Insurance receivables | ' | ' |
Deferred acquisition costs | ' | ' |
Goodwill | ' | ' |
Insurance reserves | ' | ' |
Claim and claim adjustment expenses | ' | ' |
Unearned premiums | ' | ' |
Future policy benefits | ' | ' |
Policyholders’ funds | ' | ' |
Business_Segments_Revenues_by_
Business Segments (Revenues by Line of Business) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues | $2,613 | $2,504 | $2,493 | $2,503 | $2,434 | $2,466 | $2,246 | $2,401 | $10,113 | $9,547 | $8,949 |
CNA Specialty [Domain] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 3,915 | 3,742 | 3,512 |
International - Specialty [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 239 | 220 | 210 |
Management & Professional Liability [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 2,836 | 2,723 | 2,541 |
Surety [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 490 | 485 | 472 |
Warranty & Alternative Risks [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 350 | 314 | 289 |
CNA Commercial [Domain] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 4,360 | 4,238 | 4,073 |
Commercial Insurance [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 3,230 | 3,200 | 2,953 |
International - Commercial [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 376 | 369 | 539 |
Small Business [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 754 | 669 | 581 |
Hardy [Domain] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 366 | 123 | ' |
Life & Group Non-Core [Domain] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 1,424 | 1,395 | 1,334 |
Health [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 1,192 | 1,120 | 1,093 |
Life & Annuity [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 232 | 239 | 229 |
Other [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | 36 | 12 |
Corporate and Other Non-Core [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 52 | 52 | 33 |
Eliminations [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ($4) | ($3) | ($3) |
Quarterly_Financial_Data_Unaud2
Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Quarterly Financial Data [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $2,613 | $2,504 | $2,493 | $2,503 | $2,434 | $2,466 | $2,246 | $2,401 | $10,113 | $9,547 | $8,949 |
Net income (loss) attributable to CNA | $221 | $272 | $194 | $250 | ($9) | $221 | $166 | $250 | $937 | $628 | $612 |
Basic earnings (loss) per share attributable to CNA common stockholders | $0.82 | $1.01 | $0.72 | $0.93 | ' | ' | ' | ' | $3.48 | $2.33 | $2.27 |
Diluted earnings (loss) per share attributable to CNA common stockholders | $0.82 | $1.01 | $0.72 | $0.93 | ' | ' | ' | ' | $3.47 | $2.33 | $2.27 |
Basic and diluted earnings (loss) per share attributable to CNA common stockholders | ' | ' | ' | ' | ($0.03) | $0.82 | $0.62 | $0.93 | ' | $2.33 | ' |
Related_Party_Transactions_Nar
Related Party Transactions Narrative (Details) (Loews [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Loews [Member] | ' | ' | ' |
Amounts reimbursed to Loews for services provided to the Company | $39 | $39 | $38 |
Amounts earned from Loews for insurance premiums | $2 | $2 | $2 |
Subsequent_Events_Narrative_De
Subsequent Events (Narrative) (Details) (USD $) | 0 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Feb. 10, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Subsequent Event [Line Items] | ' | ' | ' | ' | ' |
Date of subsequent event | 10-Feb-14 | ' | ' | ' | ' |
Gross insurance reserves | ' | $24,089 | $24,763 | $24,303 | $25,496 |
Net income (loss) from continuing operations attributable to CNA | ' | 937 | 628 | 613 | ' |
Majority of Run-off Annuity and Pension Deposit Business to be Sold [Member] | ' | ' | ' | ' | ' |
Subsequent Event [Line Items] | ' | ' | ' | ' | ' |
Gross insurance reserves | ' | 3,400 | ' | ' | ' |
Net income (loss) from continuing operations attributable to CNA | ' | 31 | 8 | -124 | ' |
Sale of Subsidiary Gain (Loss) [Member] | Majority of Run-off Annuity and Pension Deposit Business to be Sold [Member] | ' | ' | ' | ' | ' |
Subsequent Event [Line Items] | ' | ' | ' | ' | ' |
Expected impairment loss on sale, after-tax | 220 | ' | ' | ' | ' |
Schedule_II_Condensed_Financia1
Schedule II. Condensed Financial Information of Registrant (Parent Company) (Schedule of Condensed Financial Information of Registrant, Statements of Operations and Comprehensive Income) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net realized investment gains (losses) | ' | ' | ' | ' | ' | ' | ' | ' | $31 | $63 | ($2) |
Other revenues | ' | ' | ' | ' | ' | ' | ' | ' | 361 | 320 | 294 |
Total revenues | 2,613 | 2,504 | 2,493 | 2,503 | 2,434 | 2,466 | 2,246 | 2,401 | 10,113 | 9,547 | 8,949 |
Expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest | ' | ' | ' | ' | ' | ' | ' | ' | 166 | 170 | 175 |
Income tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | 376 | 244 | 242 |
Net income (loss) attributable to CNA | 221 | 272 | 194 | 250 | -9 | 221 | 166 | 250 | 937 | 628 | 612 |
Total comprehensive income (loss) attributable to CNA | ' | ' | ' | ' | ' | ' | ' | ' | 548 | 979 | 755 |
Parent Company [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net investment income | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 1 | 1 |
Net realized investment gains (losses) | ' | ' | ' | ' | ' | ' | ' | ' | 4 | 4 | -9 |
Other revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9 | 40 |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 14 | 32 |
Expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Administrative and general | ' | ' | ' | ' | ' | ' | ' | ' | -7 | 1 | 3 |
Interest | ' | ' | ' | ' | ' | ' | ' | ' | 165 | 164 | 167 |
Total expenses | ' | ' | ' | ' | ' | ' | ' | ' | 158 | 165 | 170 |
Income (loss) from operations before income taxes and equity in net income of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | -153 | -151 | -138 |
Income tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | -22 | -144 | -46 |
Income (loss) before equity in net income (loss) of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | -131 | -7 | -92 |
Equity in net income of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 1,068 | 635 | 704 |
Net income (loss) attributable to CNA | ' | ' | ' | ' | ' | ' | ' | ' | 937 | 628 | 612 |
Equity in other comprehensive income of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | -389 | 351 | 143 |
Total comprehensive income (loss) attributable to CNA | ' | ' | ' | ' | ' | ' | ' | ' | $548 | $979 | $755 |
Schedule_II_Condensed_Financia2
Schedule II. Condensed Financial Information of Registrant (Parent Company) (Schedule of Condensed Financial Information of Registrant, Balance Sheets) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Millions, unless otherwise specified | ||||
Assets | ' | ' | ' | ' |
Cash | $195 | $156 | $75 | $77 |
Fixed maturity securities available-for-sale, at fair value (amortized cost of $1 and $2) | 41,197 | 42,604 | ' | ' |
Short term investments | 1,407 | 1,832 | ' | ' |
Other assets | 969 | 773 | ' | ' |
Total assets | 57,194 | 58,522 | ' | ' |
Liabilities | ' | ' | ' | ' |
Short term debt | 549 | 13 | ' | ' |
Long term debt | 2,011 | 2,557 | ' | ' |
Other liabilities | 3,408 | 3,321 | ' | ' |
Total liabilities | 44,543 | 46,208 | ' | ' |
Stockholders' Equity | ' | ' | ' | ' |
Common stock ($2.50 par value; 500,000,000 shares authorized; 273,040,243 shares issued; 269,717,583 and 269,399,390 shares outstanding) | 683 | 683 | ' | ' |
Additional paid-in capital | 2,145 | 2,146 | ' | ' |
Retained earnings | 9,495 | 8,774 | ' | ' |
Accumulated other comprehensive income (loss) | 442 | 831 | ' | ' |
Treasury stock (3,322,660 and 3,640,853 shares), at cost | -91 | -99 | ' | ' |
Notes receivable for the issuance of common stock | -23 | -21 | ' | ' |
Total stockholders’ equity | 12,651 | 12,314 | ' | ' |
Total liabilities and stockholders' equity | 57,194 | 58,522 | ' | ' |
Balance Sheet Parenthetical | ' | ' | ' | ' |
Common stock, par value | $2.50 | $2.50 | ' | ' |
Common stock, shares authorized | 500,000,000 | 500,000,000 | ' | ' |
Common stock, shares issued | 273,040,243 | 273,040,243 | ' | ' |
Common stock, shares outstanding | 269,717,583 | 269,399,390 | ' | ' |
Treasury stock, shares | 3,322,660 | 3,640,853 | ' | ' |
Parent Company [Member] | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Investment in subsidiaries | 14,708 | 14,427 | ' | ' |
Cash | 1 | ' | ' | ' |
Fixed maturity securities available-for-sale, at fair value (amortized cost of $1 and $2) | 1 | 2 | ' | ' |
Short term investments | 505 | 448 | ' | ' |
Amounts due from subsidiaries | 3 | 2 | ' | ' |
Other assets | 3 | 5 | ' | ' |
Total assets | 15,221 | 14,884 | ' | ' |
Liabilities | ' | ' | ' | ' |
Short term debt | 549 | 3 | ' | ' |
Long term debt | 1,981 | 2,527 | ' | ' |
Other liabilities | 40 | 40 | ' | ' |
Total liabilities | 2,570 | 2,570 | ' | ' |
Stockholders' Equity | ' | ' | ' | ' |
Common stock ($2.50 par value; 500,000,000 shares authorized; 273,040,243 shares issued; 269,717,583 and 269,399,390 shares outstanding) | 683 | 683 | ' | ' |
Additional paid-in capital | 2,145 | 2,146 | ' | ' |
Retained earnings | 9,495 | 8,774 | ' | ' |
Accumulated other comprehensive income (loss) | 442 | 831 | ' | ' |
Treasury stock (3,322,660 and 3,640,853 shares), at cost | -91 | -99 | ' | ' |
Notes receivable for the issuance of common stock | -23 | -21 | ' | ' |
Total stockholders’ equity | 12,651 | 12,314 | ' | ' |
Total liabilities and stockholders' equity | 15,221 | 14,884 | ' | ' |
Balance Sheet Parenthetical | ' | ' | ' | ' |
Marketable securities fixed maturities available-for-sale at amortized cost basis | $1 | $2 | ' | ' |
Common stock, par value | $2.50 | $2.50 | ' | ' |
Common stock, shares authorized | 500,000,000 | 500,000,000 | ' | ' |
Common stock, shares issued | 273,040,243 | 273,040,243 | ' | ' |
Common stock, shares outstanding | ' | 269,399,390 | ' | ' |
Treasury stock, shares | ' | 3,640,853 | ' | ' |
Schedule_II_Condensed_Financia3
Schedule II. Condensed Financial Information of Registrant (Parent Company) (Schedule of Condensed Financial Information of Registrant, Statements of Cash Flows) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash Flows from Operating Activities | ' | ' | ' |
Net income (loss) | $937 | $628 | $612 |
Adjustments to reconcile net income (loss) to net cash flows provided (used) by operating activities: | ' | ' | ' |
Net realized investment (gains) losses | -31 | -63 | 2 |
Other, net | 10 | 14 | 10 |
Total adjustments | 267 | 622 | 1,076 |
Net cash flows provided (used) by operating activities-total | 1,204 | 1,250 | 1,702 |
Cash Flows from Investing Activities | ' | ' | ' |
Change in short term investments | 425 | -7 | 566 |
Other, net | 11 | 16 | 1 |
Net cash flows provided (used) by investing activities-total | -898 | -934 | -1,060 |
Cash Flows from Financing Activities | ' | ' | ' |
Dividends paid to common stockholders | -216 | -162 | -108 |
Proceeds from the issuance of debt | ' | ' | 396 |
Repayment of debt | -13 | -70 | -451 |
Stock options exercised | 2 | 1 | 2 |
Other, net | -37 | -8 | -8 |
Net cash flows provided (used) by financing activities-total | -264 | -239 | -644 |
Net change in cash | 39 | 81 | -2 |
Cash, beginning of year | 156 | 75 | 77 |
Cash, end of year | 195 | 156 | 75 |
Parent Company [Member] | ' | ' | ' |
Cash Flows from Operating Activities | ' | ' | ' |
Net income (loss) | 937 | 628 | 612 |
Adjustments to reconcile net income (loss) to net cash flows provided (used) by operating activities: | ' | ' | ' |
Equity in net income (loss) of subsidiaries | -1,068 | -635 | -704 |
Dividends received from subsidiaries | 400 | 450 | ' |
Net realized investment (gains) losses | -4 | -4 | 9 |
Other, net | 8 | 19 | 55 |
Total adjustments | -664 | -170 | -640 |
Net cash flows provided (used) by operating activities-total | 273 | 458 | -28 |
Cash Flows from Investing Activities | ' | ' | ' |
Proceeds from fixed maturity securities | 1 | 1 | 1 |
Change in short term investments | -57 | -156 | -77 |
Capital contributions to subsidiaries | -12 | -399 | -38 |
Return of capital from subsidiaries | ' | ' | 6 |
Repayment of surplus note by subsidiary | ' | 250 | 250 |
Other, net | 4 | 4 | 1 |
Net cash flows provided (used) by investing activities-total | -64 | -300 | 143 |
Cash Flows from Financing Activities | ' | ' | ' |
Dividends paid to common stockholders | -216 | -162 | -108 |
Proceeds from the issuance of debt | ' | ' | 396 |
Repayment of debt | -3 | ' | -409 |
Stock options exercised | 2 | 1 | 5 |
Other, net | 9 | 3 | 1 |
Net cash flows provided (used) by financing activities-total | -208 | -158 | -115 |
Net change in cash | 1 | ' | ' |
Cash, beginning of year | ' | ' | ' |
Cash, end of year | $1 | ' | ' |
Schedule_II_Condensed_Financia4
Schedule II. Condensed Financial Information of Registrant (Parent Company) (Schedule II. Condensed Financial Information of Registrant (Narrative)) (Details) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Aggregate amount of quantifiable indemnification agreements in effect for sales of business entities, assets and third party loans | $702 |
Recorded liabilities related to indemnification agreements | 7 |
Parent Company [Member] | ' |
Percentage of CNAF common stock outstanding currently held by Loews | 90.00% |
Aggregate amount of quantifiable indemnification agreements in effect for sales of business entities, assets and third party loans | 255 |
Recorded liabilities related to indemnification agreements | ' |
Maximum exposure SSAs | $2,000 |
Schedule_V_Valuation_and_Quali2
Schedule V. Valuation and Qualifying Accounts (Schedule of valuation and qualifying accounts) (Details) (Allowance for doubtful accounts, insurance and reinsurance receivables [Member], USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Allowance for doubtful accounts, insurance and reinsurance receivables [Member] | ' | ' | ' | |||
Movement in valuation allowances and reserves [Roll Forward] | ' | ' | ' | |||
Balance at beginning of period | $174 | $203 | $285 | |||
Charged to costs and expenses | -6 | -23 | -55 | |||
Charged to other accounts | -3 | [1] | 5 | [1] | ' | [1] |
Deductions | -10 | -11 | -27 | |||
Balance at end of period | $155 | $174 | $203 | |||
[1] | Amount includes effects of foreign currency translation. |
Schedule_VI_Supplemental_Infor2
Schedule VI. Supplemental Information Concerning Property and Casualty Insurance Operations (Details) (Consolidated Property and Casualty Insurance Entity [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Consolidated Property and Casualty Insurance Entity [Member] | ' | ' | ' |
Deferred acquisition costs | $624 | $598 | ' |
Reserves for unpaid claim and claim adjustment expenses | 24,015 | 24,696 | ' |
Discount deducted from claim and claim adjustment expense reserves above (based on interest rates ranging from 3.0% to 9.7%) | 1,586 | 1,850 | ' |
Unearned Premiums | 3,718 | 3,610 | ' |
Net written premiums | 7,348 | 6,964 | 6,798 |
Net earned premiums | 7,271 | 6,881 | 6,603 |
Net investment income | 2,240 | 2,074 | 1,845 |
Incurred claim and claim adjustment expenses related to current year | 5,113 | 5,266 | 4,901 |
Incurred claim and claim adjustment expenses related to prior years | -115 | -180 | -429 |
Amortization of deferred acquisition costs | 1,362 | 1,274 | 1,176 |
Paid claim and claim adjustment expenses | $5,566 | $5,257 | $4,499 |
Supplemental Information Parenthetical | ' | ' | ' |
Minimum interest rate in discount range | 3.00% | ' | ' |
Maximum interest rate in discount range | 9.70% | ' | ' |