Cover Page Cover Page
Cover Page Cover Page - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 01, 2019 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-5823 | |
Entity Registrant Name | CNA FINANCIAL CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 36-6169860 | |
Entity Address, Address Line One | 151 N. Franklin | |
Entity Address, City or Town | Chicago, | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60606 | |
City Area Code | 312 | |
Local Phone Number | 822-5000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 271,507,039 | |
Entity Central Index Key | 0000021175 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
New York Stock Exchange | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, Par value $2.50 | |
Trading Symbol | "CNA" | |
Security Exchange Name | NYSE | |
Chicago Stock Exchange | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, Par value $2.50 | |
Trading Symbol | "CNA" | |
Security Exchange Name | CHX |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues | ||||
Net earned premiums | $ 1,824 | $ 1,815 | $ 3,627 | $ 3,600 |
Net investment income | 515 | 506 | 1,086 | 996 |
Net investment (losses) gains: | ||||
Other-than-temporary impairment losses | (6) | 0 | (20) | (6) |
Other net investment (losses) gains | (12) | (1) | 33 | 17 |
Net investment (losses) gains | (18) | (1) | 13 | 11 |
Non-insurance warranty revenue | 285 | 248 | 566 | 486 |
Other revenues | 4 | 6 | 13 | 16 |
Total revenues | 2,610 | 2,574 | 5,305 | 5,109 |
Claims, Benefits and Expenses | ||||
Insurance claims and policyholders’ benefits | 1,352 | 1,327 | 2,709 | 2,666 |
Amortization of deferred acquisition costs | 338 | 359 | 680 | 655 |
Non-insurance warranty expense | 263 | 225 | 523 | 441 |
Other operating expenses | 281 | 298 | 564 | 601 |
Interest | 34 | 35 | 68 | 70 |
Total claims, benefits and expenses | 2,268 | 2,244 | 4,544 | 4,433 |
Income before income tax | 342 | 330 | 761 | 676 |
Income tax expense | (64) | (60) | (141) | (115) |
Net income | $ 278 | $ 270 | $ 620 | $ 561 |
Basic earnings per share | ||||
Basic earnings per share (in usd per share) | $ 1.03 | $ 0.99 | $ 2.28 | $ 2.07 |
Diluted earnings per share | ||||
Diluted earnings per share (in usd per share) | $ 1.02 | $ 0.99 | $ 2.28 | $ 2.06 |
Weighted Average Outstanding Common Stock and Common Stock Equivalents | ||||
Basic (in shares) | 271.6 | 271.5 | 271.6 | 271.5 |
Diluted (in shares) | 272.4 | 272.4 | 272.5 | 272.4 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net income | $ 278 | $ 270 | $ 620 | $ 561 |
Other Comprehensive Income (Loss), Net of Tax | ||||
Net unrealized gains on investments | 436 | (160) | 966 | (598) |
Foreign currency translation adjustment | 0 | (52) | 17 | (40) |
Pension and postretirement benefits | 8 | 7 | 15 | 17 |
Other comprehensive income (loss), net of tax | 444 | (205) | 998 | (621) |
Total comprehensive income (loss) | 722 | 65 | 1,618 | (60) |
Net unrealized gains on investments with other-than-temporary impairments | ||||
Other Comprehensive Income (Loss), Net of Tax | ||||
Net unrealized gains on investments | 0 | (1) | 4 | (10) |
Net unrealized gains on other investments | ||||
Other Comprehensive Income (Loss), Net of Tax | ||||
Net unrealized gains on investments | $ 436 | $ (159) | $ 962 | $ (588) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Investments: | ||
Fixed maturity securities at fair value (amortized cost of $38,023 and $38,085) | $ 41,639 | $ 39,546 |
Equity securities at fair value (cost of $812 and $844) | 830 | 780 |
Limited partnership investments | 1,785 | 1,982 |
Other invested assets | 58 | 53 |
Mortgage loans | 916 | 839 |
Short term investments | 1,519 | 1,286 |
Total investments | 46,747 | 44,486 |
Cash | 271 | 310 |
Reinsurance receivables (less allowance for uncollectible receivables of $29 and $29) | 4,234 | 4,426 |
Insurance receivables (less allowance for uncollectible receivables of $39 and $42) | 2,651 | 2,323 |
Accrued investment income | 398 | 391 |
Deferred acquisition costs | 681 | 633 |
Deferred income taxes | 106 | 392 |
Property and equipment at cost (less accumulated depreciation of $208 and $216) | 302 | 324 |
Goodwill | 146 | 146 |
Deferred non-insurance warranty acquisition expense | 2,678 | 2,513 |
Other assets (includes $- and $8 due from Loews Corporation) | 1,749 | 1,208 |
Total assets | 59,963 | 57,152 |
Insurance reserves: | ||
Claim and claim adjustment expenses | 21,729 | 21,984 |
Unearned premiums | 4,648 | 4,183 |
Future policy benefits | 11,537 | 10,597 |
Long term debt | 2,678 | 2,680 |
Deferred non-insurance warranty revenue | 3,595 | 3,402 |
Other liabilities (includes $48 and $23 due to Loews Corporation) | 3,689 | 3,089 |
Total liabilities | 47,876 | 45,935 |
Commitments and contingencies | ||
Stockholders' Equity | ||
Common stock ($2.50 par value; 500,000,000 shares authorized; 273,040,243 shares issued; 271,503,818 and 271,456,978 shares outstanding) | 683 | 683 |
Additional paid-in capital | 2,190 | 2,192 |
Retained earnings | 9,159 | 9,277 |
Accumulated other comprehensive income (loss) | 120 | (878) |
Treasury stock (1,536,425 and 1,583,265 shares), at cost | (65) | (57) |
Total stockholders’ equity | 12,087 | 11,217 |
Total liabilities and stockholders' equity | $ 59,963 | $ 57,152 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets - (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Fixed maturities securities at amortized cost | $ 38,023 | $ 38,085 |
Equity securities at cost | 812 | 844 |
Allowance for uncollectible reinsurance | 29 | 29 |
Allowance for uncollectible insurance receivables | 39 | 42 |
Accumulated depreciation on property and equipment | 208 | 216 |
Due to related parties | 48 | 23 |
Due from related parties | $ 0 | $ 8 |
Common stock, par value (in usd per share) | $ 2.50 | $ 2.50 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 273,040,243 | 273,040,243 |
Common stock, shares outstanding (in shares) | 271,503,818 | 271,456,978 |
Treasury stock, shares (in shares) | 1,536,425 | 1,583,265 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash Flows from Operating Activities | ||
Net income | $ 620 | $ 561 |
Adjustments to reconcile net income to net cash flows provided by operating activities: | ||
Deferred income tax expense | 25 | 15 |
Trading portfolio activity | 4 | (13) |
Net investment gains | (13) | (11) |
Equity method investees | 39 | (15) |
Net amortization of investments | (47) | (30) |
Depreciation and amortization | 36 | 41 |
Changes in: | ||
Receivables, net | (135) | (587) |
Accrued investment income | (7) | 15 |
Deferred acquisition costs | (47) | (43) |
Insurance reserves | 203 | 563 |
Other, net | (164) | (142) |
Net cash flows provided by operating activities | 514 | 354 |
Dispositions: | ||
Fixed maturity securities - sales | 3,858 | 4,781 |
Fixed maturity securities - maturities, calls and redemptions | 1,374 | 1,306 |
Equity securities | 117 | 25 |
Limited partnerships | 297 | 93 |
Mortgage loans | 70 | 68 |
Purchases: | ||
Fixed maturity securities | (4,896) | (5,608) |
Equity securities | (88) | (127) |
Limited partnerships | (139) | (72) |
Mortgage loans | (147) | (94) |
Change in other investments | (4) | (6) |
Change in short term investments | (211) | 135 |
Purchases of property and equipment | (14) | (76) |
Other, net | 16 | 14 |
Net cash flows provided by investing activities | 233 | 439 |
Cash Flows from Financing Activities | ||
Dividends paid to common stockholders | (738) | (706) |
Proceeds from the issuance of debt | 496 | 0 |
Repayment of debt | (520) | (150) |
Purchase of treasury stock | (16) | 0 |
Other, net | (10) | 1 |
Net cash flows used by financing activities | (788) | (855) |
Effect of foreign exchange rate changes on cash | 2 | (5) |
Net change in cash | (39) | (67) |
Cash, beginning of year | 310 | 355 |
Cash, end of period | $ 271 | $ 288 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Total stockholder's equity at beginning of period at Dec. 31, 2017 | $ 683,000,000 | $ 2,175,000,000 | $ 9,364,000,000 | $ 16,000,000 | $ (60,000,000) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 4,000,000 | 2,000,000 | ||||
Dividends to common stockholders ($0.35, $0.30, $2.70 and $2.60 per share) | (709,000,000) | |||||
Net income | $ 561,000,000 | 561,000,000 | ||||
Other comprehensive income (loss) | (621,000,000) | (621,000,000) | ||||
Purchase of treasury stock | 0 | |||||
Total stockholder's equity at end of period at Jun. 30, 2018 | 11,415,000,000 | 683,000,000 | 2,179,000,000 | 9,216,000,000 | (605,000,000) | (58,000,000) |
Total stockholder's equity at beginning of period at Dec. 31, 2017 | 683,000,000 | 2,175,000,000 | 9,364,000,000 | 16,000,000 | (60,000,000) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Purchase of treasury stock | 0 | |||||
Total stockholder's equity at end of period at Dec. 31, 2018 | 11,217,000,000 | 683,000,000 | 2,192,000,000 | 9,277,000,000 | (878,000,000) | (57,000,000) |
Total stockholder's equity at beginning of period at Mar. 31, 2018 | 683,000,000 | 2,173,000,000 | 9,028,000,000 | (400,000,000) | (59,000,000) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 6,000,000 | 1,000,000 | ||||
Dividends to common stockholders ($0.35, $0.30, $2.70 and $2.60 per share) | (82,000,000) | |||||
Net income | 270,000,000 | 270,000,000 | ||||
Other comprehensive income (loss) | (205,000,000) | (205,000,000) | ||||
Purchase of treasury stock | 0 | |||||
Total stockholder's equity at end of period at Jun. 30, 2018 | 11,415,000,000 | 683,000,000 | 2,179,000,000 | 9,216,000,000 | (605,000,000) | (58,000,000) |
Total stockholder's equity at beginning of period at Dec. 31, 2018 | 11,217,000,000 | 683,000,000 | 2,192,000,000 | 9,277,000,000 | (878,000,000) | (57,000,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | (2,000,000) | 8,000,000 | ||||
Dividends to common stockholders ($0.35, $0.30, $2.70 and $2.60 per share) | (738,000,000) | |||||
Net income | 620,000,000 | 620,000,000 | ||||
Other comprehensive income (loss) | 998,000,000 | 998,000,000 | ||||
Purchase of treasury stock | (16,000,000) | (16,000,000) | ||||
Total stockholder's equity at end of period at Jun. 30, 2019 | 12,087,000,000 | 683,000,000 | 2,190,000,000 | 9,159,000,000 | 120,000,000 | (65,000,000) |
Total stockholder's equity at beginning of period at Mar. 31, 2019 | 683,000,000 | 2,184,000,000 | 8,976,000,000 | (324,000,000) | (64,000,000) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 6,000,000 | 1,000,000 | ||||
Dividends to common stockholders ($0.35, $0.30, $2.70 and $2.60 per share) | (95,000,000) | |||||
Net income | 278,000,000 | 278,000,000 | ||||
Other comprehensive income (loss) | 444,000,000 | 444,000,000 | ||||
Purchase of treasury stock | (2,000,000) | |||||
Total stockholder's equity at end of period at Jun. 30, 2019 | $ 12,087,000,000 | $ 683,000,000 | $ 2,190,000,000 | $ 9,159,000,000 | $ 120,000,000 | $ (65,000,000) |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared per share (usd per share) | $ 0.35 | $ 0.30 | $ 2.70 | $ 2.60 |
General
General | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
General | General Basis of Presentation The Condensed 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 89% of the outstanding common stock of CNAF as of June 30, 2019 . The accompanying Condensed 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. Certain financial information that is normally included in annual financial statements prepared in accordance with GAAP, including certain financial statement notes, is not required for interim reporting purposes and has been condensed or omitted. These statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in CNAF's Annual Report on Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 2018 , including the summary of significant accounting policies in Note A . The preparation of Condensed 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 Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates. The interim financial data as of June 30, 2019 and for the three and six months ended June 30, 2019 and 2018 is unaudited. However, in the opinion of management, the interim data includes all adjustments, including normal recurring adjustments, necessary for a fair statement of the Company's results for the interim periods. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. Recently Adopted Accounting Standards Updates (ASU) ASU 2016-02: In February 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-02, Leases (Topic 842): Accounting for Leases. The updated accounting guidance requires lessees to recognize on the balance sheet assets and liabilities for the rights and obligations created by the majority of leases, including those historically accounted for as operating leases. On January 1, 2019, the Company adopted the updated guidance using a modified retrospective method. Prior period amounts have not been adjusted and continue to be reported in accordance with the previous accounting guidance. The Company utilized the package of practical expedients allowing the Company to not reassess whether a contract is or contains a lease, lease classification and initial direct costs. The Company also utilized the practical expedient to not separate lease and non-lease components for all leases. Adoption of the updated guidance resulted in the following changes to the Condensed Consolidated Balance Sheet on January 1, 2019: (In millions) Balance as of December 31, 2018 Adjustments Due to Adoption of Topic 842 Balance as of January 1, 2019 Property and equipment at cost (less accumulated depreciation) $ 324 $ 2 $ 326 Other assets 1,208 237 1,445 Other liabilities 3,089 239 3,328 As of January 1, 2019 , operating lease right-of-use (ROU) assets, included within Other assets, were reduced by accrued rent and lease incentives of $75 million previously classified as Other liabilities. The updated guidance did not impact the Condensed Consolidated Statements of Operations. See Note K to the Condensed Consolidated Financial Statements for additional information regarding leases. Accounting Standards Pending Adoption In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The updated accounting guidance requires changes to the recognition of credit losses on financial instruments not accounted for at fair value through net income. The guidance is effective for interim and annual periods beginning after December 15, 2019. The guidance will be applied using a modified retrospective approach with the cumulative effect recognized as an adjustment to retained earnings. A prospective transition approach is required for debt securities that have recognized an other-than-temporary impairment prior to the effective date. The Company is currently evaluating the effect the guidance will have on the Company's financial statements. The primary changes will be the use of the expected credit loss model for its mortgage loan portfolio, reinsurance and insurance receivables and other financing receivables and the use of the allowance method rather than the write-down method for credit losses within the available-for-sale fixed maturities portfolio. The expected credit loss model will require a financial asset to be presented at the ultimate net amount expected to be collected over the term of the asset. The allowance method for available-for-sale debt securities will allow the Company to record reversals of credit losses if the estimate of credit losses declines. In August 2018, the FASB issued ASU 2018-12, Financial Services-Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts . The updated accounting guidance requires changes to the measurement and disclosure of long-duration contracts. The guidance requires entities to annually update cash flow assumptions, including morbidity and persistency, and update discount rate assumptions quarterly using an upper-medium grade fixed-income instrument yield. The effect of changes in cash flow assumptions will be recorded in Net income and the effect of changes in discount rate assumptions will be recorded in Other comprehensive income. This guidance is effective for interim and annual periods beginning after December 15, 2020; however the FASB has proposed a one year deferral of the effective date. The guidance requires restatement of the prior periods presented. Early adoption is permitted. The Company is currently evaluating the method and timing of adoption and the effect the updated guidance will have on its financial statements. The annual updating of cash flow assumptions is expected to increase income statement volatility. The quarterly change in discount rate is expected to increase volatility in the Company’s stockholders' equity, but that will be somewhat mitigated because Shadow Adjustments are eliminated under the new guidance. While the requirements of the new guidance represent a material change from existing GAAP, the underlying economics of the business and related cash flows are unchanged. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Earnings (loss) per share is based on the 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) 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 three and six months ended June 30, 2019 , approximately 776 thousand and 872 thousand potential shares attributable to exercises or conversions into common stock under stock-based employee compensation plans were included in the calculation of diluted earnings per share. For those same periods, less than 1 thousand potential shares attributable to exercises or conversions into common stock under stock-based employee compensation plans were not included in the calculation of diluted earnings per share, because the effect would have been antidilutive. For the three and six months ended June 30, 2018 , approximately 835 thousand and 929 thousand potential shares attributable to exercises or conversions into common stock under stock-based employee compensation plans were included in the calculation of diluted earnings per share. For those same periods, approximately 445 thousand and 2 thousand potential shares attributable to exercises or conversions into common stock under stock-based employee compensation plans were not included in the calculation of diluted earnings per share, because the effect would have been antidilutive. The Company repurchased 365,695 shares of CNA Financial Corporation common stock at an aggregate cost of $ 16 million during the six months ended June 30, 2019 . No repurchases were made during 2018 . |
Investments
Investments | 6 Months Ended |
Jun. 30, 2019 | |
Investments [Abstract] | |
Investments | Investments The significant components of Net investment income are presented in the following table. Periods ended June 30 Three Months Six Months (In millions) 2019 2018 2019 2018 Fixed maturity securities $ 455 $ 444 $ 910 $ 890 Equity securities 16 12 46 22 Limited partnership investments 37 40 113 70 Mortgage loans 12 14 24 25 Short term investments 9 6 19 12 Trading portfolio 2 3 4 5 Other — 3 2 3 Gross investment income 531 522 1,118 1,027 Investment expense (16 ) (16 ) (32 ) (31 ) Net investment income $ 515 $ 506 $ 1,086 $ 996 During the three and six months ended June 30, 2019 , $4 million and $21 million of Net investment income was recognized due to the change in fair value of common stock still held as of June 30, 2019 . During the three and six months ended June 30, 2018 , $2 million and $1 million of Net investment income was recognized due to the change in fair value of common stock still held as of June 30, 2018 . Net investment gains (losses) are presented in the following table. Periods ended June 30 Three Months Six Months (In millions) 2019 2018 2019 2018 Net investment gains (losses): Fixed maturity securities: Gross gains $ 28 $ 37 $ 64 $ 106 Gross losses (31 ) (33 ) (73 ) (84 ) Net investment gains (losses) on fixed maturity securities (3 ) 4 (9 ) 22 Equity securities 11 (10 ) 53 (25 ) Derivatives (6 ) 4 (11 ) 9 Short term investments and other (20 ) 1 (20 ) 5 Net investment gains (losses) $ (18 ) $ (1 ) $ 13 $ 11 During the three and six months ended June 30, 2019 , $11 million and $53 million of Net investment gains were recognized due to the change in fair value of non-redeemable preferred stock still held as of June 30, 2019 . During the three and six months ended June 30, 2018 , $10 million and $25 million of Net investment losses were recognized due to the change in fair value of non-redeemable preferred stock still held as of June 30, 2018 . Net investment gains (losses) for the three and six months ended June 30, 2019 included a $21 million loss related to the second quarter 2019 redemption of the Company's $500 million senior notes due August 2020. The components of Other-than-temporary impairment (OTTI) losses recognized in earnings by asset type are presented in the following table. Periods ended June 30 Three Months Six Months (In millions) 2019 2018 2019 2018 Fixed maturity securities available-for-sale: Corporate and other bonds $ 6 $ — $ 12 $ 5 Asset-backed — — 8 1 OTTI losses recognized in earnings $ 6 $ — $ 20 $ 6 The following tables present a summary of fixed maturity securities. June 30, 2019 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Unrealized OTTI Losses (Gains) (In millions) Fixed maturity securities available-for-sale: Corporate and other bonds $ 19,654 $ 1,880 $ 44 $ 21,490 $ — States, municipalities and political subdivisions 9,196 1,507 — 10,703 — Asset-backed: Residential mortgage-backed 4,668 131 2 4,797 (24 ) Commercial mortgage-backed 2,032 93 4 2,121 — Other asset-backed 1,865 40 7 1,898 (2 ) Total asset-backed 8,565 264 13 8,816 (26 ) U.S. Treasury and obligations of government-sponsored enterprises 118 5 — 123 — Foreign government 480 17 — 497 — Redeemable preferred stock 10 — — 10 — Total fixed maturity securities available-for-sale 38,023 3,673 57 41,639 $ (26 ) Total fixed maturity securities trading — — — — Total fixed maturity securities $ 38,023 $ 3,673 $ 57 $ 41,639 December 31, 2018 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Unrealized OTTI Losses (Gains) (In millions) Fixed maturity securities available-for-sale: Corporate and other bonds $ 18,764 $ 791 $ 395 $ 19,160 $ — States, municipalities and political subdivisions 9,681 1,076 9 10,748 — Asset-backed: Residential mortgage-backed 4,815 68 57 4,826 (20 ) Commercial mortgage-backed 2,200 28 32 2,196 — Other asset-backed 1,975 11 24 1,962 — Total asset-backed 8,990 107 113 8,984 (20 ) U.S. Treasury and obligations of government-sponsored enterprises 156 3 — 159 — Foreign government 480 5 4 481 — Redeemable preferred stock 10 — — 10 — Total fixed maturity securities available-for-sale 38,081 1,982 521 39,542 $ (20 ) Total fixed maturity securities trading 4 — — 4 Total fixed maturity securities $ 38,085 $ 1,982 $ 521 $ 39,546 The net unrealized gains on investments included in the tables above are recorded as a component of Accumulated other comprehensive income (AOCI). When presented in AOCI, these amounts are net of tax and any required Shadow Adjustments. To the extent that unrealized gains on fixed income securities supporting certain products within the Life & Group segment would result in a premium deficiency if realized, a related increase in Insurance reserves is recorded, net of tax, as a reduction of net unrealized gains through Other comprehensive income (loss) (Shadow Adjustments). As of June 30, 2019 and December 31, 2018 , the net unrealized gains on investments included in AOCI were correspondingly reduced by Shadow Adjustments of $1,816 million and $1,078 million The following tables present the estimated fair value and gross unrealized losses of fixed maturity securities in a gross unrealized loss position by the length of time in which the securities have continuously been in that position. Less than 12 Months 12 Months or Longer Total June 30, 2019 Estimated Gross Estimated Gross Estimated Gross Unrealized Losses (In millions) Fixed maturity securities available-for-sale: Corporate and other bonds $ 776 $ 22 $ 498 $ 22 $ 1,274 $ 44 States, municipalities and political subdivisions 19 — 2 — 21 — Asset-backed: Residential mortgage-backed 163 — 134 2 297 2 Commercial mortgage-backed 58 2 69 2 127 4 Other asset-backed 386 5 77 2 463 7 Total asset-backed 607 7 280 6 887 13 U.S. Treasury and obligations of government-sponsored enterprises — — 4 — 4 — Foreign government 3 — 11 — 14 — Total $ 1,405 $ 29 $ 795 $ 28 $ 2,200 $ 57 Less than 12 Months 12 Months or Longer Total December 31, 2018 Estimated Gross Estimated Gross Estimated Gross (In millions) Fixed maturity securities available-for-sale: Corporate and other bonds $ 8,543 $ 340 $ 825 $ 55 $ 9,368 $ 395 States, municipalities and political subdivisions 517 8 5 1 522 9 Asset-backed: Residential mortgage-backed 1,932 23 1,119 34 3,051 57 Commercial mortgage-backed 728 10 397 22 1,125 32 Other asset-backed 834 21 125 3 959 24 Total asset-backed 3,494 54 1,641 59 5,135 113 U.S. Treasury and obligations of government-sponsored enterprises 21 — 19 — 40 — Foreign government 114 2 124 2 238 4 Total $ 12,689 $ 404 $ 2,614 $ 117 $ 15,303 $ 521 Based on current facts and circumstances, the Company believes the unrealized losses presented in the June 30, 2019 securities in a gross unrealized loss position table above are not indicative of the ultimate collectibility of the current amortized cost of the securities, but rather are attributable to changes in interest rates, credit spreads and other factors. The Company has no current intent to sell securities with unrealized losses, 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 as of June 30, 2019 . The following table presents the activity related to the pretax credit loss component reflected in Retained earnings on fixed maturity securities still held as of June 30, 2019 and 2018 for which a portion of an OTTI loss was recognized in Other comprehensive income (loss). Periods ended June 30 Three Months Six Months (In millions) 2019 2018 2019 2018 Beginning balance of credit losses on fixed maturity securities $ 17 $ 25 $ 18 $ 27 Reductions for securities sold during the period (1 ) (4 ) (2 ) (6 ) Ending balance of credit losses on fixed maturity securities $ 16 $ 21 $ 16 $ 21 Contractual Maturity The following table presents available-for-sale fixed maturity securities by contractual maturity. June 30, 2019 December 31, 2018 (In millions) Cost or Amortized Cost Estimated Fair Value Cost or Amortized Cost Estimated Fair Value Due in one year or less $ 1,018 $ 1,032 $ 1,350 $ 1,359 Due after one year through five years 8,097 8,476 7,979 8,139 Due after five years through ten years 16,403 17,297 16,859 16,870 Due after ten years 12,505 14,834 11,893 13,174 Total $ 38,023 $ 41,639 $ 38,081 $ 39,542 Actual maturities may differ from contractual maturities because certain securities may be called or prepaid. Securities not due at a single date are allocated based on weighted average life. Derivative Financial Instruments The Company holds an embedded derivative on a funds withheld liability with a notional value of $172 million as of June 30, 2019 and December 31, 2018 and a fair value of $(8) million and $4 million as of June 30, 2019 and December 31, 2018 . The embedded derivative on the funds withheld liability is accounted for separately and reported with the funds withheld liability in Other liabilities on the Condensed Consolidated Balance Sheets. Investment Commitments As part of its overall investment strategy, the Company invests in various assets which require future purchase, sale or funding commitments. These investments are recorded once funded, and the related commitments may include future capital calls from various third-party limited partnerships, signed and accepted mortgage loan applications, and obligations related to privately placed debt securities. As of June 30, 2019, the Company had commitments to purchase or fund approximately $875 million and sell approximately $85 million under the terms of these investments. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 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 methodology 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 a methodology 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 may include i) the review of pricing service methodologies or broker pricing qualifications, ii) back-testing, where past fair value estimates are compared to actual transactions executed in the market on similar dates, iii) exception reporting, where period-over-period changes in price 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 presented in the following tables. Corporate bonds and other includes obligations of the U.S. Treasury, government-sponsored enterprises, foreign governments and redeemable preferred stock. June 30, 2019 Total Assets/Liabilities at Fair Value (In millions) Level 1 Level 2 Level 3 Assets Fixed maturity securities: Corporate bonds and other $ 152 $ 21,630 $ 338 $ 22,120 States, municipalities and political subdivisions — 10,703 — 10,703 Asset-backed — 8,623 193 8,816 Total fixed maturity securities 152 40,956 531 41,639 Equity securities: Common stock 129 — 6 135 Non-redeemable preferred stock 51 628 16 695 Total equity securities 180 628 22 830 Short term and other 359 1,052 — 1,411 Total assets $ 691 $ 42,636 $ 553 $ 43,880 Liabilities Other liabilities $ — $ 8 $ — $ 8 Total liabilities $ — $ 8 $ — $ 8 December 31, 2018 Total Assets/Liabilities at Fair Value (In millions) Level 1 Level 2 Level 3 Assets Fixed maturity securities: Corporate bonds and other $ 196 $ 19,396 $ 222 $ 19,814 States, municipalities and political subdivisions — 10,748 — 10,748 Asset-backed — 8,787 197 8,984 Total fixed maturity securities 196 38,931 419 39,546 Equity securities: Common stock 144 — 4 148 Non-redeemable preferred stock 48 570 14 632 Total equity securities 192 570 18 780 Short term and other 216 949 — 1,165 Total assets $ 604 $ 40,450 $ 437 $ 41,491 Liabilities Other liabilities $ — $ (4 ) $ — $ (4 ) Total liabilities $ — $ (4 ) $ — $ (4 ) 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). Level 3 (In millions) Corporate bonds and other States, municipalities and political subdivisions Asset-backed Equity securities Total Balance as of April 1, 2019 $ 253 $ — $ 184 $ 20 $ 457 Total realized and unrealized investment gains (losses): Reported in Net investment gains (losses) — — — — — Reported in Other comprehensive income (loss) 12 — 4 — 16 Total realized and unrealized investment gains (losses) 12 — 4 — 16 Purchases 76 — — 2 78 Sales — — — — — Settlements (2 ) — (4 ) — (6 ) Transfers into Level 3 — — 40 — 40 Transfers out of Level 3 (1 ) — (31 ) — (32 ) Balance as of June 30, 2019 $ 338 $ — $ 193 $ 22 $ 553 Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2019 recognized in Net income (loss) $ — $ — $ — $ — $ — Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2019 recognized in Other comprehensive income (loss) 10 — 5 — 15 Level 3 (In millions) Corporate bonds and other States, municipalities and political subdivisions Asset-backed Equity securities Total Balance as of April 1, 2018 $ 100 $ 1 $ 279 $ 18 $ 398 Total realized and unrealized investment gains (losses): Reported in Net investment gains (losses) — — — (1 ) (1 ) Reported in Other comprehensive income (loss) (1 ) — (1 ) — (2 ) Total realized and unrealized investment gains (losses) (1 ) — (1 ) (1 ) (3 ) Purchases 2 — 41 — 43 Sales (5 ) — — — (5 ) Settlements (2 ) — (6 ) — (8 ) Transfers into Level 3 — — 13 — 13 Transfers out of Level 3 — — (53 ) — (53 ) Balance as of June 30, 2018 $ 94 $ 1 $ 273 $ 17 $ 385 Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2018 recognized in Net income (loss) $ — $ — $ — $ (1 ) $ (1 ) Level 3 (In millions) Corporate bonds and other States, municipalities and political subdivisions Asset-backed Equity securities Total Balance as of January 1, 2019 $ 222 $ — $ 197 $ 18 $ 437 Total realized and unrealized investment gains (losses): Reported in Net investment gains (losses) — — — 2 2 Reported in Other comprehensive income (loss) 20 — 7 — 27 Total realized and unrealized investment gains (losses) 20 — 7 2 29 Purchases 132 — 20 2 154 Sales — — — — — Settlements (4 ) — (8 ) — (12 ) Transfers into Level 3 — — 45 — 45 Transfers out of Level 3 (32 ) — (68 ) — (100 ) Balance as of June 30, 2019 $ 338 $ — $ 193 $ 22 $ 553 Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2019 recognized in Net income (loss) $ — $ — $ — $ 3 $ 3 Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2019 recognized in Other comprehensive income (loss) 17 — 8 — 25 Level 3 (In millions) Corporate bonds and other States, municipalities and political subdivisions Asset-backed Equity securities Total Balance as of January 1, 2018 $ 98 $ 1 $ 335 $ 20 $ 454 Total realized and unrealized investment gains (losses): Reported in Net investment gains (losses) (1 ) — 7 (3 ) 3 Reported in Other comprehensive income (loss) (1 ) — (6 ) — (7 ) Total realized and unrealized investment gains (losses) (2 ) — 1 (3 ) (4 ) Purchases 2 — 71 — 73 Sales (5 ) — (72 ) — (77 ) Settlements (4 ) — (12 ) — (16 ) Transfers into Level 3 5 — 13 — 18 Transfers out of Level 3 — — (63 ) — (63 ) Balance as of June 30, 2018 $ 94 $ 1 $ 273 $ 17 $ 385 Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2018 recognized in Net income (loss) $ — $ — $ — $ (3 ) $ (3 ) Securities may be transferred in or out of levels within the fair value hierarchy based on the availability of observable market information and quoted prices used to determine the fair value of the security. The availability of observable market information and quoted prices varies based on market conditions and trading volume. 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 Level 1 securities include highly liquid and exchange traded bonds, valued using quoted market prices. Level 2 securities include most other fixed maturity securities as the significant inputs are observable in the marketplace. All classes of Level 2 fixed maturity securities are valued using a methodology based on information generated by market transactions involving identical or comparable assets, a discounted cash flow methodology, or a combination of both when necessary. Common inputs for all classes of fixed maturity securities include prices from recently executed transactions of similar securities, marketplace 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. Fixed maturity securities are primarily 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 private placement debt securities whose fair value 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 valued using pricing for similar securities, recently executed transactions and other pricing models utilizing market observable inputs. Level 3 securities are primarily priced using broker/dealer quotes and internal models with inputs that are not market observable. Short Term and Other Invested Assets 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. As of June 30, 2019 and December 31, 2018 , there were approximately $53 million and $48 million of overseas deposits within other invested assets, which can be redeemed at net asset value in 90 days or less. Overseas deposits are excluded from the fair value hierarchy because their fair value is recorded using the net asset value per share (or equivalent) practical expedient. Derivative Financial Investments Level 2 investments primarily include the embedded derivative on the funds withheld liability. The embedded derivative on funds withheld liability is valued using the change in fair value of the assets supporting the funds withheld liability, which are fixed maturity securities valued with observable inputs. Significant Unobservable Inputs The following tables present 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 tables 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. The weighted average rate is calculated based on fair value. June 30, 2019 Estimated Fair Value (In millions) Valuation Technique(s) Unobservable Input(s) Range (Weighted Average) Fixed maturity securities $ 381 Discounted cash flow Credit spread 1% - 5% (2%) December 31, 2018 Estimated Fair Value Valuation Technique(s) Unobservable Input(s) Range (Weighted Average) Fixed maturity securities $ 228 Discounted cash flow Credit spread 1% - 12% (3%) For fixed maturity securities, an increase to the credit spread assumptions 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 assets and liabilities which are not measured at fair value on the Condensed Consolidated Balance Sheets are presented in the following tables. June 30, 2019 Carrying Amount Estimated Fair Value (In millions) Level 1 Level 2 Level 3 Total Assets Mortgage loans $ 916 $ — $ — $ 936 $ 936 Note receivable 20 — — 20 20 Liabilities Long term debt $ 2,678 $ — $ 2,864 $ — $ 2,864 December 31, 2018 Carrying Estimated Fair Value (In millions) Level 1 Level 2 Level 3 Total Assets Mortgage loans $ 839 $ — $ — $ 827 $ 827 Note receivable 35 — — 35 35 Liabilities Long term debt $ 2,680 $ — $ 2,731 $ — $ 2,731 The following methods and assumptions were used to estimate the fair value of these financial assets and liabilities. 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. The fair value of the note receivable was based on the present value of the expected future cash flows discounted at the current interest rate for origination of similar notes, adjusted for specific credit risk. The note receivable is included within Other assets on the Condensed Consolidated Balance Sheets. 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 Condensed 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. |
Claim and Claim Adjustment Expe
Claim and Claim Adjustment Expense Reserves | 6 Months Ended |
Jun. 30, 2019 | |
Liability for Claims and Claims Adjustment Expense [Abstract] | |
Claim and Claim Adjustment Expense Reserves | Claim and Claim Adjustment Expense Reserves Property and casualty insurance claim and claim adjustment expense reserves represent the estimated amounts necessary to resolve all outstanding claims, including incurred but not reported (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 historical patterns such as claim reserving trends and settlement practices, loss payments, pending levels of unpaid claims and product mix, as well as court decisions and 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 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 our results of operations and/or equity. The Company reported catastrophe losses, net of reinsurance, of $38 million and $96 million for the three and six months ended June 30, 2019 . The Company reported catastrophe losses, net of reinsurance, of $26 million and $60 million for the three and six months ended June 30, 2018 . Net catastrophe losses in 2019 and 2018 related primarily to U.S. weather related events. Liability for Unpaid Claim and Claim Adjustment Expenses The following table presents a reconciliation between beginning and ending claim and claim adjustment expense reserves, including claim and claim adjustment expense reserves of the Life & Group segment. For the six months ended June 30 (In millions) 2019 2018 Reserves, beginning of year: Gross $ 21,984 $ 22,004 Ceded 4,019 3,934 Net reserves, beginning of year 17,965 18,070 Net incurred claim and claim adjustment expenses: Provision for insured events of current year 2,615 2,552 Increase (decrease) in provision for insured events of prior years (36 ) (112 ) Amortization of discount 98 92 Total net incurred (1) 2,677 2,532 Net payments attributable to: Current year events (315 ) (312 ) Prior year events (2,519 ) (2,387 ) Total net payments (2,834 ) (2,699 ) Foreign currency translation adjustment and other 55 (70 ) Net reserves, end of period 17,863 17,833 Ceded reserves, end of period 3,866 4,157 Gross reserves, end of period $ 21,729 $ 21,990 (1) Total net incurred above does not agree to Insurance claims and policyholders' benefits as reflected on the Condensed 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, which are not reflected in the table above. Net Prior Year Development Changes in estimates of claim and claim adjustment expense reserves, net of reinsurance, for prior years are defined as net prior year loss reserve development (development). These changes can be favorable or unfavorable. The following table presents development recorded for the Specialty, Commercial, International and Corporate & Other segments. Periods ended June 30 Three Months Six Months (In millions) 2019 2018 2019 2018 Pretax (favorable) unfavorable development: Specialty $ (18 ) $ (44 ) $ (38 ) $ (74 ) Commercial (12 ) (13 ) (20 ) (22 ) International (1 ) (2 ) 13 (2 ) Corporate & Other — — — — Total pretax (favorable) unfavorable development $ (31 ) $ (59 ) $ (45 ) $ (98 ) Specialty The following table presents further detail of the development recorded for the Specialty segment. Periods ended June 30 Three Months Six Months (In millions) 2019 2018 2019 2018 Pretax (favorable) unfavorable development: Medical Professional Liability $ 15 $ 3 $ 30 $ 23 Other Professional Liability and Management Liability (7 ) (34 ) (19 ) (68 ) Surety (15 ) (15 ) (40 ) (30 ) Warranty (7 ) (6 ) (7 ) (6 ) Other (4 ) 8 (2 ) 7 Total pretax (favorable) unfavorable development $ (18 ) $ (44 ) $ (38 ) $ (74 ) Three Months 2019 Favorable development in surety was due to lower than expected frequency for accident years 2015 and 2016. Unfavorable development in medical professional liability was primarily due to unfavorable outcomes on individual claims and higher than expected severity emergence in accident year 2017 in our dentists business. 2018 Favorable development in other professional liability and management liability was primarily in professional liability errors and omissions (E&O) reflecting lower than expected claim frequency in accident years 2014 through 2016 and favorable severity for accident years 2012 and prior. Favorable development in surety was driven by continued lower than expected loss emergence on accident years 2015 and prior. Six Months 2019 Favorable development in surety was due to lower than expected frequency for accident years 2016 and prior. Favorable development in other professional liability and management liability was primarily due to lower than expected claim frequency and favorable outcomes on individual claims in accident years 2017 and prior related to financial institutions. Unfavorable development in medical professional liability was primarily due to higher than expected severity in accident year 2013 in our allied healthcare business, unfavorable outcomes on individual claims and higher than expected severity emergence in accident year 2017 in our dentists business. 2018 Unfavorable development in medical professional liability was primarily due to higher than expected severity in accident years 2014 and 2017 in our hospitals business. Favorable development in other professional liability and management liability was primarily due to lower than expected claim frequency for accident years 2013 through 2017 related to financial institutions. Additional favorable development was in professional liability errors and omissions (E&O) reflecting lower than expected claim frequency in accident years 2014 through 2016 and favorable severity for accident years 2012 and prior. Favorable development in surety was due to continued lower than expected loss emergence for accident years 2015 and prior. Commercial The following table presents further detail of the development recorded for the Commercial segment. Periods ended June 30 Three Months Six Months (In millions) 2019 2018 2019 2018 Pretax (favorable) unfavorable development: Commercial Auto $ (3 ) $ — $ (8 ) $ (1 ) General Liability 13 26 (7 ) 18 Workers' Compensation (7 ) (6 ) (5 ) (12 ) Property and Other (15 ) (33 ) — (27 ) Total pretax (favorable) unfavorable development $ (12 ) $ (13 ) $ (20 ) $ (22 ) Three Months 2019 Favorable development in property and other was primarily due to continued lower than expected claim severity from catastrophes in accident year 2017. Unfavorable development in general liability was primarily due to higher than expected large loss experience in our excess and umbrella business in accident year 2017. 2018 Unfavorable development in general liability was driven by higher than expected claim severity in umbrella in accident years 2013 through 2015. Favorable development in property and other was driven by lower than expected claim severity from catastrophes in accident year 2017. Six Months 2019 Favorable development in general liability was primarily due to lower than expected frequency on latent construction defect claims across multiple accident years. This was partially offset by unfavorable development due to higher than expected large loss experience in our excess and umbrella business in accident year 2017. 2018 Unfavorable development in general liability was driven by higher than expected claim severity in umbrella in accident years 2013 through 2015. International The following table presents further detail of the development recorded for the International segment. Periods ended June 30 Three Months Six Months (In millions) 2019 2018 2019 2018 Pretax (favorable) unfavorable development: Casualty $ (5 ) $ (6 ) $ (5 ) $ (6 ) Property (4 ) 13 11 12 Energy and Marine 9 (5 ) 8 (5 ) Specialty (1) (1 ) (4 ) (1 ) (3 ) Total pretax (favorable) unfavorable development $ (1 ) $ (2 ) $ 13 $ (2 ) (1) Effective January 1, 2019 the Healthcare and Technology line of business has been absorbed within the Specialty line of business in the International segment. Prior period information has been conformed to the new line of business presentation. Three Months 2019 Unfavorable development in energy and marine was primarily due to adverse attritional experience and increased frequency of large losses in accident year 2018. 2018 Unfavorable development in property was primarily driven by higher than expected severity in Canada and higher than expected frequency in Hardy, both in accident year 2017. Favorable development in specialty was primarily driven by lower than expected frequency in accident years 2015 and prior related to healthcare in Europe, partially offset by unfavorable development arising from increased severity for professional indemnity in accident year 2017. Six Months 2019 Unfavorable development in property was driven by higher than expected claims in Hardy on 2018 accident year catastrophes. 2018 The drivers of development for the six month period were consistent with the three month summary above. Asbestos and Environmental Pollution (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 through a Loss Portfolio Transfer (LPT). At the effective date of the 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 LPT 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 . In years subsequent to the effective date of the LPT, the Company recognized adverse prior year development on its A&EP reserves resulting in additional amounts ceded under the LPT. As a result, the cumulative amounts ceded under the LPT have exceeded the $2.2 billion consideration paid, resulting in the NICO LPT moving into a gain position, requiring retroactive reinsurance accounting. Under retroactive reinsurance accounting, this gain is deferred and only recognized in earnings in proportion to actual paid recoveries under the LPT. Over the life of the contract, there is no economic impact as long as any additional losses incurred are within the limit of the LPT. In a period in which the Company recognizes a change in the estimate of A&EP reserves that increases or decreases the amounts ceded under the LPT, the proportion of actual paid recoveries to total ceded losses is affected and the change in the deferred gain is recognized in earnings as if the revised estimate of ceded losses was available at the effective date of the LPT. The effect of the deferred retroactive reinsurance benefit is recorded in Insurance claims and policyholders' benefits on the Condensed Consolidated Statements of Operations. The following table presents the impact of the Loss Portfolio Transfer on the Condensed Consolidated Statements of Operations. Periods ended June 30 Three Months Six Months (In millions) 2019 2018 2019 2018 Additional amounts ceded under LPT: Net A&EP adverse development before consideration of LPT $ — $ — $ — $ 113 Provision for uncollectible third-party reinsurance on A&EP — — — (16 ) Total additional amounts ceded under LPT — — — 97 Retroactive reinsurance benefit recognized (14 ) (15 ) (36 ) (72 ) Pretax impact of deferred retroactive reinsurance $ (14 ) $ (15 ) $ (36 ) $ 25 The Company intends to complete its annual A&EP reserve review in the fourth quarter of 2019 and maintain this timing for all future annual A&EP reserve reviews. The Company completed A&EP reserve reviews in both the first and fourth quarters of 2018 . Based upon the Company's 2018 first quarter A&EP reserve review, net unfavorable prior year development of $113 million was recognized before consideration of cessions to the LPT for the six months ended June 30, 2018 . The 2018 unfavorable development was driven by higher than anticipated defense costs on direct asbestos and environmental accounts and paid losses on assumed reinsurance exposures. Additionally, in 2018, the Company released a portion of its provision for uncollectible third-party reinsurance. As of June 30, 2019 and December 31, 2018 , the cumulative amounts ceded under the LPT were $3.1 billion . The unrecognized deferred retroactive reinsurance benefit was $338 million and $374 million as of June 30, 2019 and December 31, 2018 and is included within Other liabilities on the Condensed Consolidated Balance Sheets. NICO established a collateral trust account as security for its obligations to the Company. The fair value of the collateral trust account was $3.1 billion and $2.7 billion as of June 30, 2019 and December 31, 2018 . In addition, Berkshire Hathaway Inc. guaranteed the payment obligations of NICO up to the 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 majority of the Company’s A&EP claims. |
Legal Proceedings, Contingencie
Legal Proceedings, Contingencies and Guarantees | 6 Months Ended |
Jun. 30, 2019 | |
Legal Proceedings, Commitments and Contingencies, and Guarantees [Abstract] | |
Legal Proceedings, Contingencies and Guarantees | Legal Proceedings, Contingencies and Guarantees The Company is a party to various claims and routine litigation incidental to its business, which, based on the facts and circumstances currently known, are not material to the Company's results of operations or financial position. Guarantees As of June 30, 2019 and December 31, 2018 , the Company had recorded liabilities of approximately $5 million related to guarantee and indemnification agreements and management does not believe that any future indemnity claims will be significantly greater than the amounts recorded. In the course of selling business entities and assets to third parties, the Company indemnified purchasers for certain losses, some of which are not limited by a contractual monetary amount. As of June 30, 2019 , the Company had outstanding unlimited indemnifications 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. Certain provisions of the indemnification agreements survive indefinitely, while others survive until the applicable statutes of limitation expire, or until the agreed-upon contract terms expire. The Company also provided guarantees, if the primary obligor fails to perform, to holders of structured settlement annuities provided by a previously owned subsidiary. As of June 30, 2019 , the potential amount of future payments the Company could be required to pay under these guarantees was approximately $1.7 billion , which will be paid over the lifetime of the annuitants. The Company does not believe any payment is likely under these guarantees, as the Company is the beneficiary of a trust that must be maintained at a level that approximates the discounted reserves for these annuities. |
Benefit Plans
Benefit Plans | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans The components of net periodic pension cost (benefit) are presented in the following table. Periods ended June 30 Three Months Six Months (In millions) 2019 2018 2019 2018 Net periodic pension cost (benefit) Service cost $ — $ — $ — $ — Non-service cost (benefit): Interest cost on projected benefit obligation 25 24 50 47 Expected return on plan assets (35 ) (40 ) (71 ) (80 ) Amortization of net actuarial (gain) loss 10 9 20 18 Settlement loss — 1 — 5 Total non-service cost (benefit) — (6 ) (1 ) (10 ) Total net periodic pension cost (benefit) $ — $ (6 ) $ (1 ) $ (10 ) For the three and six months ended June 30, 2019 , the Company recognized less than $1 million of non-service benefit in Insurance claims and policyholders' benefits and less than $1 million and $1 million of non-service benefit in Other operating expenses. For the three and six months ended June 30, 2018 , the Company recognized $2 million and $3 million of non-service cost in Insurance claims and policyholders' benefits and $4 million and $7 million of non-service cost in Other operating expenses. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) by Component | 6 Months Ended |
Jun. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) by Component | Accumulated Other Comprehensive Income (Loss) by Component The tables below display the changes in Accumulated other comprehensive income (loss) by component. (In millions) 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 as of April 1, 2019 $ 20 $ 587 $ (768 ) $ (163 ) $ (324 ) Other comprehensive income (loss) before reclassifications (1 ) 434 — — 433 Amounts reclassified from accumulated other comprehensive income (loss) net of tax (expense) benefit of $-, $-, $2, $- and $2 (1 ) (2 ) (8 ) — (11 ) Other comprehensive income (loss) net of tax (expense) benefit of $(1), $(114), $(2), $- and $(117) — 436 8 — 444 Balance as of June 30, 2019 $ 20 $ 1,023 $ (760 ) $ (163 ) $ 120 (In millions) 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 as of April 1, 2018 $ 21 $ 430 $ (765 ) $ (86 ) $ (400 ) Other comprehensive income (loss) before reclassifications (1 ) (156 ) — (52 ) (209 ) Amounts reclassified from accumulated other comprehensive income (loss) net of tax (expense) benefit of $-, $(1), $2, $- and $1 — 3 (7 ) — (4 ) Other comprehensive income (loss) net of tax (expense) benefit of $1, $46, $(2), $- and $45 (1 ) (159 ) 7 (52 ) (205 ) Balance as of June 30, 2018 $ 20 $ 271 $ (758 ) $ (138 ) $ (605 ) (In millions) 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 as of January 1, 2019 $ 16 $ 61 $ (775 ) $ (180 ) $ (878 ) Other comprehensive income (loss) before reclassifications 3 955 (1 ) 17 974 Amounts reclassified from accumulated other comprehensive income (loss) net of tax (expense) benefit of $-, $1, $4, $- and $5 (1 ) (7 ) (16 ) — (24 ) Other comprehensive income (loss) net of tax (expense) benefit of $(2), $(255), $(4), $- and $(261) 4 962 15 17 998 Balance as of June 30, 2019 $ 20 $ 1,023 $ (760 ) $ (163 ) $ 120 (In millions) 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 as of January 1, 2018 $ 30 $ 859 $ (775 ) $ (98 ) $ 16 Other comprehensive income (loss) before reclassifications (11 ) (570 ) — (40 ) (621 ) Amounts reclassified from accumulated other comprehensive income (loss) net of tax (expense) benefit of $-, $(5), $5, $- and $- (1 ) 18 (17 ) — — Other comprehensive income (loss) net of tax (expense) benefit of $3, $155, $(5), $- and $153 (10 ) (588 ) 17 (40 ) (621 ) Balance as of June 30, 2018 $ 20 $ 271 $ (758 ) $ (138 ) $ (605 ) 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 investment gains (losses) Net unrealized gains (losses) on other investments Net investment gains (losses) Pension and postretirement benefits Other operating expenses and Insurance claims and policyholders' benefits |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The Company's property and casualty commercial insurance operations are managed and reported in three business segments: Specialty, Commercial and International. These three segments are collectively referred to as Property & Casualty Operations. The Company's operations outside of Property & Casualty Operations are managed and reported in two segments: Life & Group and Corporate & Other. The accounting policies of the segments are the same as those described in Note A to the Consolidated Financial Statements within CNAF's Annual Report on Form 10-K for the year ended December 31, 2018 . 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, Goodwill and Deferred non-insurance warranty acquisition expense and revenue are readily identifiable for 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 Net investment gains or losses are allocated primarily based on each segment's net carried insurance reserves, as adjusted. All significant intersegment income and expense have been eliminated. Income taxes have been allocated on the basis of the taxable income of the segments. 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. The performance of the Company's insurance operations is monitored by management through core income (loss), which is derived from certain income statement amounts. 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. Core income (loss) is calculated by excluding from net income (loss) the after-tax effects of i) net investment gains (losses), ii) income or loss from discontinued operations, iii) any cumulative effects of changes in accounting guidance and iv) deferred tax asset and liability remeasurement as a result of an enacted U.S. Federal tax rate change. The calculation of core income (loss) excludes net investment gains or losses because net investment gains or losses 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. Three months ended June 30, 2019 International Life & Corporate Eliminations Total (In millions) Operating revenues Net earned premiums $ 688 $ 763 $ 243 $ 130 $ — $ — $ 1,824 Net investment income 134 154 15 205 7 — 515 Non-insurance warranty revenue 285 — — — — — 285 Other revenues (1 ) 3 1 — 2 (1 ) 4 Total operating revenues 1,106 920 259 335 9 (1 ) 2,628 Claims, benefits and expenses Net incurred claims and benefits 395 507 147 309 (12 ) — 1,346 Policyholders’ dividends 1 5 — — — — 6 Amortization of deferred acquisition costs 152 130 56 — — — 338 Non-insurance warranty expense 263 — — — — — 263 Other insurance related expenses 76 119 34 30 (1 ) — 258 Other expenses 12 7 3 2 34 (1 ) 57 Total claims, benefits and expenses 899 768 240 341 21 (1 ) 2,268 Core income (loss) before income tax 207 152 19 (6 ) (12 ) — 360 Income tax (expense) benefit on core income (loss) (46 ) (32 ) (2 ) 13 1 — (66 ) Core income (loss) $ 161 $ 120 $ 17 $ 7 $ (11 ) $ — 294 Net investment gains (losses) (18 ) Income tax (expense) benefit on net investment gains (losses) 2 Net investment gains (losses), after tax (16 ) Net income $ 278 Three months ended June 30, 2018 International Life & Corporate Eliminations Total (In millions) Operating revenues Net earned premiums $ 683 $ 753 $ 248 $ 131 $ — $ — $ 1,815 Net investment income 130 157 15 198 6 — 506 Non-insurance warranty revenue 248 — — — — — 248 Other revenues — 8 (1 ) — (1 ) — 6 Total operating revenues 1,061 918 262 329 5 — 2,575 Claims, benefits and expenses Net incurred claims and benefits 372 470 166 327 (14 ) — 1,321 Policyholders’ dividends 1 5 — — — — 6 Amortization of deferred acquisition costs 149 127 83 — — — 359 Non-insurance warranty expense 225 — — — — — 225 Other insurance related expenses 70 126 10 30 — — 236 Other expenses 12 10 7 1 67 — 97 Total claims, benefits and expenses 829 738 266 358 53 — 2,244 Core income (loss) before income tax 232 180 (4 ) (29 ) (48 ) — 331 Income tax (expense) benefit on core income (loss) (49 ) (37 ) (3 ) 19 9 — (61 ) Core income (loss) $ 183 $ 143 $ (7 ) $ (10 ) $ (39 ) $ — 270 Net investment gains (losses) (1 ) Income tax (expense) benefit on net investment gains (losses) 1 Net investment gains (losses), after tax — Net income $ 270 Six months ended June 30, 2019 Specialty Commercial International Life & Group Corporate & Other Eliminations Total (In millions) Operating revenues Net earned premiums $ 1,349 $ 1,526 $ 493 $ 260 $ — $ (1 ) $ 3,627 Net investment income 289 344 30 409 14 — 1,086 Non-insurance warranty revenue 566 — — — — — 566 Other revenues — 10 1 1 4 (3 ) 13 Total operating revenues 2,204 1,880 524 670 18 (4 ) 5,292 Claims, benefits and expenses Net incurred claims and benefits 787 1,017 309 617 (33 ) — 2,697 Policyholders’ dividends 2 10 — — — — 12 Amortization of deferred acquisition costs 299 257 124 — — — 680 Non-insurance warranty expense 523 — — — — — 523 Other insurance related expenses 146 249 59 58 (2 ) (1 ) 509 Other expenses 24 18 7 4 73 (3 ) 123 Total claims, benefits and expenses 1,781 1,551 499 679 38 (4 ) 4,544 Core income (loss) before income tax 423 329 25 (9 ) (20 ) — 748 Income tax (expense) benefit on core income (loss) (93 ) (70 ) (2 ) 26 3 — (136 ) Core income (loss) $ 330 $ 259 $ 23 $ 17 $ (17 ) $ — 612 Net investment gains (losses) 13 Income tax (expense) benefit on net investment gains (losses) (5 ) Net investment gains (losses), after tax 8 Net income $ 620 June 30, 2019 (In millions) Reinsurance receivables $ 696 $ 766 $ 242 $ 399 $ 2,160 $ — $ 4,263 Insurance receivables 1,002 1,362 318 7 1 — 2,690 Deferred acquisition costs 316 264 101 — — — 681 Goodwill 117 — 29 — — — 146 Deferred non-insurance warranty acquisition expense 2,678 — — — — — 2,678 Insurance reserves Claim and claim adjustment expenses 5,396 8,580 1,800 3,710 2,243 — 21,729 Unearned premiums 2,261 1,721 534 133 — (1 ) 4,648 Future policy benefits — — — 11,537 — — 11,537 Deferred non-insurance warranty revenue 3,595 — — — — — 3,595 Six months ended June 30, 2018 Specialty Commercial International Life & Group Corporate & Other Eliminations Total (In millions) Operating revenues Net earned premiums $ 1,355 $ 1,496 $ 484 $ 265 $ — $ — $ 3,600 Net investment income 252 306 29 398 11 — 996 Non-insurance warranty revenue 486 — — — — — 486 Other revenues 1 16 (1 ) 1 — (1 ) 16 Total operating revenues 2,094 1,818 512 664 11 (1 ) 5,098 Claims, benefits and expenses Net incurred claims and benefits 751 938 308 630 27 — 2,654 Policyholders’ dividends 2 10 — — — — 12 Amortization of deferred acquisition costs 294 248 113 — — — 655 Non-insurance warranty expense 441 — — — — — 441 Other insurance related expenses 134 253 66 60 — — 513 Other expenses 23 21 3 3 109 (1 ) 158 Total claims, benefits and expenses 1,645 1,470 490 693 136 (1 ) 4,433 Core income (loss) before income tax 449 348 22 (29 ) (125 ) — 665 Income tax (expense) benefit on core income (loss) (95 ) (72 ) (6 ) 33 26 — (114 ) Core income (loss) $ 354 $ 276 $ 16 $ 4 $ (99 ) $ — 551 Net investment gains (losses) 11 Income tax (expense) benefit on net investment gains (losses) (1 ) Net investment gains (losses), after tax 10 Net income $ 561 December 31, 2018 (In millions) Reinsurance receivables $ 649 $ 795 $ 250 $ 414 $ 2,347 $ — $ 4,455 Insurance receivables 947 1,277 284 9 (152 ) — 2,365 Deferred acquisition costs 308 230 95 — — — 633 Goodwill 117 — 29 — — — 146 Deferred non-insurance warranty acquisition expense 2,513 — — — — — 2,513 Insurance reserves Claim and claim adjustment expenses 5,465 8,743 1,750 3,601 2,425 — 21,984 Unearned premiums 2,132 1,454 475 122 — — 4,183 Future policy benefits — — — 10,597 — — 10,597 Deferred non-insurance warranty revenue 3,402 — — — — — 3,402 The following table presents operating revenue by line of business for each reportable segment. Periods ended June 30 Three Months Six Months (In millions) 2019 2018 2019 2018 Specialty Management & Professional Liability $ 629 $ 627 $ 1,265 $ 1,251 Surety 151 145 290 274 Warranty & Alternative Risks 326 289 649 569 Specialty revenues 1,106 1,061 2,204 2,094 Commercial Middle Market 545 521 1,092 1,025 Small Business 115 120 236 239 Other Commercial Insurance 260 277 552 554 Commercial revenues 920 918 1,880 1,818 International Canada 68 63 134 121 Europe 88 91 179 179 Hardy 103 108 211 212 International revenues 259 262 524 512 Life & Group revenues 335 329 670 664 Corporate & Other revenues 9 5 18 11 Eliminations (1 ) — (4 ) (1 ) Total operating revenues 2,628 2,575 5,292 5,098 Net investment gains (losses) (18 ) (1 ) 13 11 Total revenues $ 2,610 $ 2,574 $ 5,305 $ 5,109 |
Non-Insurance Revenues from Con
Non-Insurance Revenues from Contracts with Customers | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Non-Insurance Revenues from Contracts with Customers | Non-Insurance Revenues from Contracts with Customers The Company had deferred non-insurance warranty revenue balances of $3.6 billion and $3.4 billion reported in Deferred non-insurance warranty revenue as of June 30, 2019 and December 31, 2018 . For the three and six months ended June 30, 2019 , the Company recognized $246 million and $ 511 million of revenues that were included in the deferred revenue balance as of January 1, 2019 . For the three and six months ended June 30, 2018 , the Company recognized $213 million and $435 million of revenues that were included in the deferred revenue balance as of January 1, 2018. For the three and six months ended June 30, 2019 and 2018 , Non-insurance warranty revenue recognized from performance obligations related to prior periods due to a change in estimate was not material. The Company expects to recognize approximately $530 million of the deferred revenue in the remainder of 2019, $927 million in 2020, $746 million in 2021 and $1.4 billion thereafter. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases A lease provides the lessee the right to control the use of an identified asset for a period of time in exchange for consideration. Operating lease ROU assets and lease liabilities are included in Other assets and Other liabilities on the Company's Condensed Consolidated Balance Sheets. ROU assets represent the Company's right to use an underlying asset for the lease term and operating lease liabilities represent the Company's obligation to make lease payments arising from the lease. The Company determines if an arrangement is a lease at inception. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Most operating leases contain renewal options that provide for rent increases based on prevailing market conditions. Certain leases contain options to terminate before maturity. The lease term used to calculate the ROU asset includes any renewal options or lease termination that the Company expects to exercise. The discount rate used to determine the commencement date present value of lease payments is the interest rate implicit in the lease, or when that is not readily determinable, the Company utilizes its secured borrowing rate. ROU assets include any lease payments required to be made prior to commencement and exclude lease incentives. Both ROU assets and lease liabilities exclude variable payments not based on an index or rate, which are treated as period costs. The Company's lease agreements do not contain significant residual value guarantees, restrictions or covenants. 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. The Company’s leases generally include lease and non-lease components, which the Company has elected to account for as a single lease component. Variable lease costs not based on an index or rate consist of non-lease components, which are being accounted for as lease components, and represent charges for services provided by the landlord and our reimbursement for the landlord’s costs, including real estate taxes and insurance. The Company does not have any significant finance leases. Operating lease cost was $9 million and $19 million for the three and six months ended June 30, 2019 . Variable lease cost was $4 million and $8 million for the three and six months ended June 30, 2019 . Cash paid for amounts included in operating lease liabilities was $9 million and $17 million for the three and six months ended June 30, 2019 . The following table presents operating lease ROU assets and lease liabilities. (In millions) June 30, 2019 Operating lease ROU assets $ 223 Operating lease liabilities 301 The following table presents the maturities of operating lease liabilities as of June 30, 2019 . (In millions) Operating Leases 2019 (Excluding the six months ended June 30, 2019) $ 15 2020 39 2021 42 2022 38 2023 33 Thereafter 202 Total lease payments 369 Less: Discount (68 ) Total operating lease liabilities $ 301 The following table presents the weighted average remaining lease term for operating leases and weighted average discount rate used in calculating operating lease right-of-use assets. June 30, 2019 Weighted average remaining lease term 10.8 years Weighted average discount rate 3.4 % The following table presents the expected future minimum lease payments to be made under non-cancelable operating leases as of December 31, 2018 . (In millions) Future Minimum Lease Payments 2019 $ 35 2020 39 2021 41 2022 38 2023 32 Thereafter 200 Total $ 385 |
General (Policies)
General (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Consolidation | The Condensed 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 89% of the outstanding common stock of CNAF as of June 30, 2019 . The accompanying Condensed 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. Certain financial information that is normally included in annual financial statements prepared in accordance with GAAP, including certain financial statement notes, is not required for interim reporting purposes and has been condensed or omitted. These statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in CNAF's Annual Report on Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 2018 , including the summary of significant accounting policies in Note A . The preparation of Condensed 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 Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates. The interim financial data as of June 30, 2019 and for the three and six months ended June 30, 2019 and 2018 is unaudited. However, in the opinion of management, the interim data includes all adjustments, including normal recurring adjustments, necessary for a fair statement of the Company's results for the interim periods. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. |
Recently Adopted Accounting Standards Updates and Accounting Standards Pending Adoption | Recently Adopted Accounting Standards Updates (ASU) ASU 2016-02: In February 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-02, Leases (Topic 842): Accounting for Leases. The updated accounting guidance requires lessees to recognize on the balance sheet assets and liabilities for the rights and obligations created by the majority of leases, including those historically accounted for as operating leases. On January 1, 2019, the Company adopted the updated guidance using a modified retrospective method. Prior period amounts have not been adjusted and continue to be reported in accordance with the previous accounting guidance. The Company utilized the package of practical expedients allowing the Company to not reassess whether a contract is or contains a lease, lease classification and initial direct costs. The Company also utilized the practical expedient to not separate lease and non-lease components for all leases. Adoption of the updated guidance resulted in the following changes to the Condensed Consolidated Balance Sheet on January 1, 2019: (In millions) Balance as of December 31, 2018 Adjustments Due to Adoption of Topic 842 Balance as of January 1, 2019 Property and equipment at cost (less accumulated depreciation) $ 324 $ 2 $ 326 Other assets 1,208 237 1,445 Other liabilities 3,089 239 3,328 As of January 1, 2019 , operating lease right-of-use (ROU) assets, included within Other assets, were reduced by accrued rent and lease incentives of $75 million previously classified as Other liabilities. The updated guidance did not impact the Condensed Consolidated Statements of Operations. See Note K to the Condensed Consolidated Financial Statements for additional information regarding leases. Accounting Standards Pending Adoption In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The updated accounting guidance requires changes to the recognition of credit losses on financial instruments not accounted for at fair value through net income. The guidance is effective for interim and annual periods beginning after December 15, 2019. The guidance will be applied using a modified retrospective approach with the cumulative effect recognized as an adjustment to retained earnings. A prospective transition approach is required for debt securities that have recognized an other-than-temporary impairment prior to the effective date. The Company is currently evaluating the effect the guidance will have on the Company's financial statements. The primary changes will be the use of the expected credit loss model for its mortgage loan portfolio, reinsurance and insurance receivables and other financing receivables and the use of the allowance method rather than the write-down method for credit losses within the available-for-sale fixed maturities portfolio. The expected credit loss model will require a financial asset to be presented at the ultimate net amount expected to be collected over the term of the asset. The allowance method for available-for-sale debt securities will allow the Company to record reversals of credit losses if the estimate of credit losses declines. In August 2018, the FASB issued ASU 2018-12, Financial Services-Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts . The updated accounting guidance requires changes to the measurement and disclosure of long-duration contracts. The guidance requires entities to annually update cash flow assumptions, including morbidity and persistency, and update discount rate assumptions quarterly using an upper-medium grade fixed-income instrument yield. The effect of changes in cash flow assumptions will be recorded in Net income and the effect of changes in discount rate assumptions will be recorded in Other comprehensive income. This guidance is effective for interim and annual periods beginning after December 15, 2020; however the FASB has proposed a one year deferral of the effective date. The guidance requires restatement of the prior periods presented. Early adoption is permitted. The Company is currently evaluating the method and timing of adoption and the effect the updated guidance will have on its financial statements. The annual updating of cash flow assumptions is expected to increase income statement volatility. The quarterly change in discount rate is expected to increase volatility in the Company’s stockholders' equity, but that will be somewhat mitigated because Shadow Adjustments are eliminated under the new guidance. While the requirements of the new guidance represent a material change from existing GAAP, the underlying economics of the business and related cash flows are unchanged. |
General General (Tables)
General General (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | Adoption of the updated guidance resulted in the following changes to the Condensed Consolidated Balance Sheet on January 1, 2019: (In millions) Balance as of December 31, 2018 Adjustments Due to Adoption of Topic 842 Balance as of January 1, 2019 Property and equipment at cost (less accumulated depreciation) $ 324 $ 2 $ 326 Other assets 1,208 237 1,445 Other liabilities 3,089 239 3,328 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments [Abstract] | |
Net investment income | The significant components of Net investment income are presented in the following table. Periods ended June 30 Three Months Six Months (In millions) 2019 2018 2019 2018 Fixed maturity securities $ 455 $ 444 $ 910 $ 890 Equity securities 16 12 46 22 Limited partnership investments 37 40 113 70 Mortgage loans 12 14 24 25 Short term investments 9 6 19 12 Trading portfolio 2 3 4 5 Other — 3 2 3 Gross investment income 531 522 1,118 1,027 Investment expense (16 ) (16 ) (32 ) (31 ) Net investment income $ 515 $ 506 $ 1,086 $ 996 |
Net realized investment gains (losses) | Net investment gains (losses) are presented in the following table. Periods ended June 30 Three Months Six Months (In millions) 2019 2018 2019 2018 Net investment gains (losses): Fixed maturity securities: Gross gains $ 28 $ 37 $ 64 $ 106 Gross losses (31 ) (33 ) (73 ) (84 ) Net investment gains (losses) on fixed maturity securities (3 ) 4 (9 ) 22 Equity securities 11 (10 ) 53 (25 ) Derivatives (6 ) 4 (11 ) 9 Short term investments and other (20 ) 1 (20 ) 5 Net investment gains (losses) $ (18 ) $ (1 ) $ 13 $ 11 |
Components of net other than temporary impairment losses recognized in earnings by asset type | The components of Other-than-temporary impairment (OTTI) losses recognized in earnings by asset type are presented in the following table. Periods ended June 30 Three Months Six Months (In millions) 2019 2018 2019 2018 Fixed maturity securities available-for-sale: Corporate and other bonds $ 6 $ — $ 12 $ 5 Asset-backed — — 8 1 OTTI losses recognized in earnings $ 6 $ — $ 20 $ 6 |
Summary of fixed maturity and equity securities | The following tables present a summary of fixed maturity securities. June 30, 2019 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Unrealized OTTI Losses (Gains) (In millions) Fixed maturity securities available-for-sale: Corporate and other bonds $ 19,654 $ 1,880 $ 44 $ 21,490 $ — States, municipalities and political subdivisions 9,196 1,507 — 10,703 — Asset-backed: Residential mortgage-backed 4,668 131 2 4,797 (24 ) Commercial mortgage-backed 2,032 93 4 2,121 — Other asset-backed 1,865 40 7 1,898 (2 ) Total asset-backed 8,565 264 13 8,816 (26 ) U.S. Treasury and obligations of government-sponsored enterprises 118 5 — 123 — Foreign government 480 17 — 497 — Redeemable preferred stock 10 — — 10 — Total fixed maturity securities available-for-sale 38,023 3,673 57 41,639 $ (26 ) Total fixed maturity securities trading — — — — Total fixed maturity securities $ 38,023 $ 3,673 $ 57 $ 41,639 December 31, 2018 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Unrealized OTTI Losses (Gains) (In millions) Fixed maturity securities available-for-sale: Corporate and other bonds $ 18,764 $ 791 $ 395 $ 19,160 $ — States, municipalities and political subdivisions 9,681 1,076 9 10,748 — Asset-backed: Residential mortgage-backed 4,815 68 57 4,826 (20 ) Commercial mortgage-backed 2,200 28 32 2,196 — Other asset-backed 1,975 11 24 1,962 — Total asset-backed 8,990 107 113 8,984 (20 ) U.S. Treasury and obligations of government-sponsored enterprises 156 3 — 159 — Foreign government 480 5 4 481 — Redeemable preferred stock 10 — — 10 — Total fixed maturity securities available-for-sale 38,081 1,982 521 39,542 $ (20 ) Total fixed maturity securities trading 4 — — 4 Total fixed maturity securities $ 38,085 $ 1,982 $ 521 $ 39,546 |
Securities in a gross unrealized loss position | The following tables present the estimated fair value and gross unrealized losses of fixed maturity securities in a gross unrealized loss position by the length of time in which the securities have continuously been in that position. Less than 12 Months 12 Months or Longer Total June 30, 2019 Estimated Gross Estimated Gross Estimated Gross Unrealized Losses (In millions) Fixed maturity securities available-for-sale: Corporate and other bonds $ 776 $ 22 $ 498 $ 22 $ 1,274 $ 44 States, municipalities and political subdivisions 19 — 2 — 21 — Asset-backed: Residential mortgage-backed 163 — 134 2 297 2 Commercial mortgage-backed 58 2 69 2 127 4 Other asset-backed 386 5 77 2 463 7 Total asset-backed 607 7 280 6 887 13 U.S. Treasury and obligations of government-sponsored enterprises — — 4 — 4 — Foreign government 3 — 11 — 14 — Total $ 1,405 $ 29 $ 795 $ 28 $ 2,200 $ 57 Less than 12 Months 12 Months or Longer Total December 31, 2018 Estimated Gross Estimated Gross Estimated Gross (In millions) Fixed maturity securities available-for-sale: Corporate and other bonds $ 8,543 $ 340 $ 825 $ 55 $ 9,368 $ 395 States, municipalities and political subdivisions 517 8 5 1 522 9 Asset-backed: Residential mortgage-backed 1,932 23 1,119 34 3,051 57 Commercial mortgage-backed 728 10 397 22 1,125 32 Other asset-backed 834 21 125 3 959 24 Total asset-backed 3,494 54 1,641 59 5,135 113 U.S. Treasury and obligations of government-sponsored enterprises 21 — 19 — 40 — Foreign government 114 2 124 2 238 4 Total $ 12,689 $ 404 $ 2,614 $ 117 $ 15,303 $ 521 |
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 presents the activity related to the pretax credit loss component reflected in Retained earnings on fixed maturity securities still held as of June 30, 2019 and 2018 for which a portion of an OTTI loss was recognized in Other comprehensive income (loss). Periods ended June 30 Three Months Six Months (In millions) 2019 2018 2019 2018 Beginning balance of credit losses on fixed maturity securities $ 17 $ 25 $ 18 $ 27 Reductions for securities sold during the period (1 ) (4 ) (2 ) (6 ) Ending balance of credit losses on fixed maturity securities $ 16 $ 21 $ 16 $ 21 |
Contractual maturity | The following table presents available-for-sale fixed maturity securities by contractual maturity. June 30, 2019 December 31, 2018 (In millions) Cost or Amortized Cost Estimated Fair Value Cost or Amortized Cost Estimated Fair Value Due in one year or less $ 1,018 $ 1,032 $ 1,350 $ 1,359 Due after one year through five years 8,097 8,476 7,979 8,139 Due after five years through ten years 16,403 17,297 16,859 16,870 Due after ten years 12,505 14,834 11,893 13,174 Total $ 38,023 $ 41,639 $ 38,081 $ 39,542 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 presented in the following tables. Corporate bonds and other includes obligations of the U.S. Treasury, government-sponsored enterprises, foreign governments and redeemable preferred stock. June 30, 2019 Total Assets/Liabilities at Fair Value (In millions) Level 1 Level 2 Level 3 Assets Fixed maturity securities: Corporate bonds and other $ 152 $ 21,630 $ 338 $ 22,120 States, municipalities and political subdivisions — 10,703 — 10,703 Asset-backed — 8,623 193 8,816 Total fixed maturity securities 152 40,956 531 41,639 Equity securities: Common stock 129 — 6 135 Non-redeemable preferred stock 51 628 16 695 Total equity securities 180 628 22 830 Short term and other 359 1,052 — 1,411 Total assets $ 691 $ 42,636 $ 553 $ 43,880 Liabilities Other liabilities $ — $ 8 $ — $ 8 Total liabilities $ — $ 8 $ — $ 8 December 31, 2018 Total Assets/Liabilities at Fair Value (In millions) Level 1 Level 2 Level 3 Assets Fixed maturity securities: Corporate bonds and other $ 196 $ 19,396 $ 222 $ 19,814 States, municipalities and political subdivisions — 10,748 — 10,748 Asset-backed — 8,787 197 8,984 Total fixed maturity securities 196 38,931 419 39,546 Equity securities: Common stock 144 — 4 148 Non-redeemable preferred stock 48 570 14 632 Total equity securities 192 570 18 780 Short term and other 216 949 — 1,165 Total assets $ 604 $ 40,450 $ 437 $ 41,491 Liabilities Other liabilities $ — $ (4 ) $ — $ (4 ) Total liabilities $ — $ (4 ) $ — $ (4 ) |
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). Level 3 (In millions) Corporate bonds and other States, municipalities and political subdivisions Asset-backed Equity securities Total Balance as of April 1, 2019 $ 253 $ — $ 184 $ 20 $ 457 Total realized and unrealized investment gains (losses): Reported in Net investment gains (losses) — — — — — Reported in Other comprehensive income (loss) 12 — 4 — 16 Total realized and unrealized investment gains (losses) 12 — 4 — 16 Purchases 76 — — 2 78 Sales — — — — — Settlements (2 ) — (4 ) — (6 ) Transfers into Level 3 — — 40 — 40 Transfers out of Level 3 (1 ) — (31 ) — (32 ) Balance as of June 30, 2019 $ 338 $ — $ 193 $ 22 $ 553 Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2019 recognized in Net income (loss) $ — $ — $ — $ — $ — Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2019 recognized in Other comprehensive income (loss) 10 — 5 — 15 Level 3 (In millions) Corporate bonds and other States, municipalities and political subdivisions Asset-backed Equity securities Total Balance as of April 1, 2018 $ 100 $ 1 $ 279 $ 18 $ 398 Total realized and unrealized investment gains (losses): Reported in Net investment gains (losses) — — — (1 ) (1 ) Reported in Other comprehensive income (loss) (1 ) — (1 ) — (2 ) Total realized and unrealized investment gains (losses) (1 ) — (1 ) (1 ) (3 ) Purchases 2 — 41 — 43 Sales (5 ) — — — (5 ) Settlements (2 ) — (6 ) — (8 ) Transfers into Level 3 — — 13 — 13 Transfers out of Level 3 — — (53 ) — (53 ) Balance as of June 30, 2018 $ 94 $ 1 $ 273 $ 17 $ 385 Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2018 recognized in Net income (loss) $ — $ — $ — $ (1 ) $ (1 ) Level 3 (In millions) Corporate bonds and other States, municipalities and political subdivisions Asset-backed Equity securities Total Balance as of January 1, 2019 $ 222 $ — $ 197 $ 18 $ 437 Total realized and unrealized investment gains (losses): Reported in Net investment gains (losses) — — — 2 2 Reported in Other comprehensive income (loss) 20 — 7 — 27 Total realized and unrealized investment gains (losses) 20 — 7 2 29 Purchases 132 — 20 2 154 Sales — — — — — Settlements (4 ) — (8 ) — (12 ) Transfers into Level 3 — — 45 — 45 Transfers out of Level 3 (32 ) — (68 ) — (100 ) Balance as of June 30, 2019 $ 338 $ — $ 193 $ 22 $ 553 Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2019 recognized in Net income (loss) $ — $ — $ — $ 3 $ 3 Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2019 recognized in Other comprehensive income (loss) 17 — 8 — 25 Level 3 (In millions) Corporate bonds and other States, municipalities and political subdivisions Asset-backed Equity securities Total Balance as of January 1, 2018 $ 98 $ 1 $ 335 $ 20 $ 454 Total realized and unrealized investment gains (losses): Reported in Net investment gains (losses) (1 ) — 7 (3 ) 3 Reported in Other comprehensive income (loss) (1 ) — (6 ) — (7 ) Total realized and unrealized investment gains (losses) (2 ) — 1 (3 ) (4 ) Purchases 2 — 71 — 73 Sales (5 ) — (72 ) — (77 ) Settlements (4 ) — (12 ) — (16 ) Transfers into Level 3 5 — 13 — 18 Transfers out of Level 3 — — (63 ) — (63 ) Balance as of June 30, 2018 $ 94 $ 1 $ 273 $ 17 $ 385 Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2018 recognized in Net income (loss) $ — $ — $ — $ (3 ) $ (3 ) |
Quantitative information about significant unobservable inputs in the fair value measurement of level 3 assets | The following tables present 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 tables 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. The weighted average rate is calculated based on fair value. June 30, 2019 Estimated Fair Value (In millions) Valuation Technique(s) Unobservable Input(s) Range (Weighted Average) Fixed maturity securities $ 381 Discounted cash flow Credit spread 1% - 5% (2%) December 31, 2018 Estimated Fair Value Valuation Technique(s) Unobservable Input(s) Range (Weighted Average) Fixed maturity securities $ 228 Discounted cash flow Credit spread 1% - 12% (3%) |
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 assets and liabilities which are not measured at fair value on the Condensed Consolidated Balance Sheets are presented in the following tables. June 30, 2019 Carrying Amount Estimated Fair Value (In millions) Level 1 Level 2 Level 3 Total Assets Mortgage loans $ 916 $ — $ — $ 936 $ 936 Note receivable 20 — — 20 20 Liabilities Long term debt $ 2,678 $ — $ 2,864 $ — $ 2,864 December 31, 2018 Carrying Estimated Fair Value (In millions) Level 1 Level 2 Level 3 Total Assets Mortgage loans $ 839 $ — $ — $ 827 $ 827 Note receivable 35 — — 35 35 Liabilities Long term debt $ 2,680 $ — $ 2,731 $ — $ 2,731 |
Claim and Claim Adjustment Ex_2
Claim and Claim Adjustment Expense Reserves (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Net Incurred Claim and Claim Adjustment Expense [Line Items] | |
Schedule of liability for unpaid claims and claims adjustment expense | The following table presents a reconciliation between beginning and ending claim and claim adjustment expense reserves, including claim and claim adjustment expense reserves of the Life & Group segment. For the six months ended June 30 (In millions) 2019 2018 Reserves, beginning of year: Gross $ 21,984 $ 22,004 Ceded 4,019 3,934 Net reserves, beginning of year 17,965 18,070 Net incurred claim and claim adjustment expenses: Provision for insured events of current year 2,615 2,552 Increase (decrease) in provision for insured events of prior years (36 ) (112 ) Amortization of discount 98 92 Total net incurred (1) 2,677 2,532 Net payments attributable to: Current year events (315 ) (312 ) Prior year events (2,519 ) (2,387 ) Total net payments (2,834 ) (2,699 ) Foreign currency translation adjustment and other 55 (70 ) Net reserves, end of period 17,863 17,833 Ceded reserves, end of period 3,866 4,157 Gross reserves, end of period $ 21,729 $ 21,990 (1) Total net incurred above does not agree to Insurance claims and policyholders' benefits as reflected on the Condensed 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, which are not reflected in the table above. |
Net prior year development | The following table presents development recorded for the Specialty, Commercial, International and Corporate & Other segments. Periods ended June 30 Three Months Six Months (In millions) 2019 2018 2019 2018 Pretax (favorable) unfavorable development: Specialty $ (18 ) $ (44 ) $ (38 ) $ (74 ) Commercial (12 ) (13 ) (20 ) (22 ) International (1 ) (2 ) 13 (2 ) Corporate & Other — — — — Total pretax (favorable) unfavorable development $ (31 ) $ (59 ) $ (45 ) $ (98 ) |
Specialty | |
Net Incurred Claim and Claim Adjustment Expense [Line Items] | |
Net prior year claim and allocated claim adjustment expense reserve development | The following table presents further detail of the development recorded for the Specialty segment. Periods ended June 30 Three Months Six Months (In millions) 2019 2018 2019 2018 Pretax (favorable) unfavorable development: Medical Professional Liability $ 15 $ 3 $ 30 $ 23 Other Professional Liability and Management Liability (7 ) (34 ) (19 ) (68 ) Surety (15 ) (15 ) (40 ) (30 ) Warranty (7 ) (6 ) (7 ) (6 ) Other (4 ) 8 (2 ) 7 Total pretax (favorable) unfavorable development $ (18 ) $ (44 ) $ (38 ) $ (74 ) |
Commercial | |
Net Incurred Claim and Claim Adjustment Expense [Line Items] | |
Net prior year claim and allocated claim adjustment expense reserve development | The following table presents further detail of the development recorded for the Commercial segment. Periods ended June 30 Three Months Six Months (In millions) 2019 2018 2019 2018 Pretax (favorable) unfavorable development: Commercial Auto $ (3 ) $ — $ (8 ) $ (1 ) General Liability 13 26 (7 ) 18 Workers' Compensation (7 ) (6 ) (5 ) (12 ) Property and Other (15 ) (33 ) — (27 ) Total pretax (favorable) unfavorable development $ (12 ) $ (13 ) $ (20 ) $ (22 ) |
International | |
Net Incurred Claim and Claim Adjustment Expense [Line Items] | |
Net prior year claim and allocated claim adjustment expense reserve development | The following table presents further detail of the development recorded for the International segment. Periods ended June 30 Three Months Six Months (In millions) 2019 2018 2019 2018 Pretax (favorable) unfavorable development: Casualty $ (5 ) $ (6 ) $ (5 ) $ (6 ) Property (4 ) 13 11 12 Energy and Marine 9 (5 ) 8 (5 ) Specialty (1) (1 ) (4 ) (1 ) (3 ) Total pretax (favorable) unfavorable development $ (1 ) $ (2 ) $ 13 $ (2 ) (1) Effective January 1, 2019 the Healthcare and Technology line of business has been absorbed within the Specialty line of business in the International segment. Prior period information has been conformed to the new line of business presentation. |
CNAF Consolidated | |
Net Incurred Claim and Claim Adjustment Expense [Line Items] | |
Impact of loss portfolio transfer on the consolidated statement of operations | The following table presents the impact of the Loss Portfolio Transfer on the Condensed Consolidated Statements of Operations. Periods ended June 30 Three Months Six Months (In millions) 2019 2018 2019 2018 Additional amounts ceded under LPT: Net A&EP adverse development before consideration of LPT $ — $ — $ — $ 113 Provision for uncollectible third-party reinsurance on A&EP — — — (16 ) Total additional amounts ceded under LPT — — — 97 Retroactive reinsurance benefit recognized (14 ) (15 ) (36 ) (72 ) Pretax impact of deferred retroactive reinsurance $ (14 ) $ (15 ) $ (36 ) $ 25 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Components of net periodic cost (benefit) | The components of net periodic pension cost (benefit) are presented in the following table. Periods ended June 30 Three Months Six Months (In millions) 2019 2018 2019 2018 Net periodic pension cost (benefit) Service cost $ — $ — $ — $ — Non-service cost (benefit): Interest cost on projected benefit obligation 25 24 50 47 Expected return on plan assets (35 ) (40 ) (71 ) (80 ) Amortization of net actuarial (gain) loss 10 9 20 18 Settlement loss — 1 — 5 Total non-service cost (benefit) — (6 ) (1 ) (10 ) Total net periodic pension cost (benefit) $ — $ (6 ) $ (1 ) $ (10 ) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) by Component (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) by Component | The tables below display the changes in Accumulated other comprehensive income (loss) by component. (In millions) 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 as of April 1, 2019 $ 20 $ 587 $ (768 ) $ (163 ) $ (324 ) Other comprehensive income (loss) before reclassifications (1 ) 434 — — 433 Amounts reclassified from accumulated other comprehensive income (loss) net of tax (expense) benefit of $-, $-, $2, $- and $2 (1 ) (2 ) (8 ) — (11 ) Other comprehensive income (loss) net of tax (expense) benefit of $(1), $(114), $(2), $- and $(117) — 436 8 — 444 Balance as of June 30, 2019 $ 20 $ 1,023 $ (760 ) $ (163 ) $ 120 (In millions) 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 as of April 1, 2018 $ 21 $ 430 $ (765 ) $ (86 ) $ (400 ) Other comprehensive income (loss) before reclassifications (1 ) (156 ) — (52 ) (209 ) Amounts reclassified from accumulated other comprehensive income (loss) net of tax (expense) benefit of $-, $(1), $2, $- and $1 — 3 (7 ) — (4 ) Other comprehensive income (loss) net of tax (expense) benefit of $1, $46, $(2), $- and $45 (1 ) (159 ) 7 (52 ) (205 ) Balance as of June 30, 2018 $ 20 $ 271 $ (758 ) $ (138 ) $ (605 ) (In millions) 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 as of January 1, 2019 $ 16 $ 61 $ (775 ) $ (180 ) $ (878 ) Other comprehensive income (loss) before reclassifications 3 955 (1 ) 17 974 Amounts reclassified from accumulated other comprehensive income (loss) net of tax (expense) benefit of $-, $1, $4, $- and $5 (1 ) (7 ) (16 ) — (24 ) Other comprehensive income (loss) net of tax (expense) benefit of $(2), $(255), $(4), $- and $(261) 4 962 15 17 998 Balance as of June 30, 2019 $ 20 $ 1,023 $ (760 ) $ (163 ) $ 120 (In millions) 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 as of January 1, 2018 $ 30 $ 859 $ (775 ) $ (98 ) $ 16 Other comprehensive income (loss) before reclassifications (11 ) (570 ) — (40 ) (621 ) Amounts reclassified from accumulated other comprehensive income (loss) net of tax (expense) benefit of $-, $(5), $5, $- and $- (1 ) 18 (17 ) — — Other comprehensive income (loss) net of tax (expense) benefit of $3, $155, $(5), $- and $153 (10 ) (588 ) 17 (40 ) (621 ) Balance as of June 30, 2018 $ 20 $ 271 $ (758 ) $ (138 ) $ (605 ) |
Reclassification out of Accumulated Other Comprehensive Income | 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 investment gains (losses) Net unrealized gains (losses) on other investments Net investment gains (losses) Pension and postretirement benefits Other operating expenses and Insurance claims and policyholders' benefits |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Significant components of the Company's continuing operations and selected balance sheet items | The Company's results of operations and selected balance sheet items by segment are presented in the following tables. Three months ended June 30, 2019 International Life & Corporate Eliminations Total (In millions) Operating revenues Net earned premiums $ 688 $ 763 $ 243 $ 130 $ — $ — $ 1,824 Net investment income 134 154 15 205 7 — 515 Non-insurance warranty revenue 285 — — — — — 285 Other revenues (1 ) 3 1 — 2 (1 ) 4 Total operating revenues 1,106 920 259 335 9 (1 ) 2,628 Claims, benefits and expenses Net incurred claims and benefits 395 507 147 309 (12 ) — 1,346 Policyholders’ dividends 1 5 — — — — 6 Amortization of deferred acquisition costs 152 130 56 — — — 338 Non-insurance warranty expense 263 — — — — — 263 Other insurance related expenses 76 119 34 30 (1 ) — 258 Other expenses 12 7 3 2 34 (1 ) 57 Total claims, benefits and expenses 899 768 240 341 21 (1 ) 2,268 Core income (loss) before income tax 207 152 19 (6 ) (12 ) — 360 Income tax (expense) benefit on core income (loss) (46 ) (32 ) (2 ) 13 1 — (66 ) Core income (loss) $ 161 $ 120 $ 17 $ 7 $ (11 ) $ — 294 Net investment gains (losses) (18 ) Income tax (expense) benefit on net investment gains (losses) 2 Net investment gains (losses), after tax (16 ) Net income $ 278 Three months ended June 30, 2018 International Life & Corporate Eliminations Total (In millions) Operating revenues Net earned premiums $ 683 $ 753 $ 248 $ 131 $ — $ — $ 1,815 Net investment income 130 157 15 198 6 — 506 Non-insurance warranty revenue 248 — — — — — 248 Other revenues — 8 (1 ) — (1 ) — 6 Total operating revenues 1,061 918 262 329 5 — 2,575 Claims, benefits and expenses Net incurred claims and benefits 372 470 166 327 (14 ) — 1,321 Policyholders’ dividends 1 5 — — — — 6 Amortization of deferred acquisition costs 149 127 83 — — — 359 Non-insurance warranty expense 225 — — — — — 225 Other insurance related expenses 70 126 10 30 — — 236 Other expenses 12 10 7 1 67 — 97 Total claims, benefits and expenses 829 738 266 358 53 — 2,244 Core income (loss) before income tax 232 180 (4 ) (29 ) (48 ) — 331 Income tax (expense) benefit on core income (loss) (49 ) (37 ) (3 ) 19 9 — (61 ) Core income (loss) $ 183 $ 143 $ (7 ) $ (10 ) $ (39 ) $ — 270 Net investment gains (losses) (1 ) Income tax (expense) benefit on net investment gains (losses) 1 Net investment gains (losses), after tax — Net income $ 270 Six months ended June 30, 2019 Specialty Commercial International Life & Group Corporate & Other Eliminations Total (In millions) Operating revenues Net earned premiums $ 1,349 $ 1,526 $ 493 $ 260 $ — $ (1 ) $ 3,627 Net investment income 289 344 30 409 14 — 1,086 Non-insurance warranty revenue 566 — — — — — 566 Other revenues — 10 1 1 4 (3 ) 13 Total operating revenues 2,204 1,880 524 670 18 (4 ) 5,292 Claims, benefits and expenses Net incurred claims and benefits 787 1,017 309 617 (33 ) — 2,697 Policyholders’ dividends 2 10 — — — — 12 Amortization of deferred acquisition costs 299 257 124 — — — 680 Non-insurance warranty expense 523 — — — — — 523 Other insurance related expenses 146 249 59 58 (2 ) (1 ) 509 Other expenses 24 18 7 4 73 (3 ) 123 Total claims, benefits and expenses 1,781 1,551 499 679 38 (4 ) 4,544 Core income (loss) before income tax 423 329 25 (9 ) (20 ) — 748 Income tax (expense) benefit on core income (loss) (93 ) (70 ) (2 ) 26 3 — (136 ) Core income (loss) $ 330 $ 259 $ 23 $ 17 $ (17 ) $ — 612 Net investment gains (losses) 13 Income tax (expense) benefit on net investment gains (losses) (5 ) Net investment gains (losses), after tax 8 Net income $ 620 June 30, 2019 (In millions) Reinsurance receivables $ 696 $ 766 $ 242 $ 399 $ 2,160 $ — $ 4,263 Insurance receivables 1,002 1,362 318 7 1 — 2,690 Deferred acquisition costs 316 264 101 — — — 681 Goodwill 117 — 29 — — — 146 Deferred non-insurance warranty acquisition expense 2,678 — — — — — 2,678 Insurance reserves Claim and claim adjustment expenses 5,396 8,580 1,800 3,710 2,243 — 21,729 Unearned premiums 2,261 1,721 534 133 — (1 ) 4,648 Future policy benefits — — — 11,537 — — 11,537 Deferred non-insurance warranty revenue 3,595 — — — — — 3,595 Six months ended June 30, 2018 Specialty Commercial International Life & Group Corporate & Other Eliminations Total (In millions) Operating revenues Net earned premiums $ 1,355 $ 1,496 $ 484 $ 265 $ — $ — $ 3,600 Net investment income 252 306 29 398 11 — 996 Non-insurance warranty revenue 486 — — — — — 486 Other revenues 1 16 (1 ) 1 — (1 ) 16 Total operating revenues 2,094 1,818 512 664 11 (1 ) 5,098 Claims, benefits and expenses Net incurred claims and benefits 751 938 308 630 27 — 2,654 Policyholders’ dividends 2 10 — — — — 12 Amortization of deferred acquisition costs 294 248 113 — — — 655 Non-insurance warranty expense 441 — — — — — 441 Other insurance related expenses 134 253 66 60 — — 513 Other expenses 23 21 3 3 109 (1 ) 158 Total claims, benefits and expenses 1,645 1,470 490 693 136 (1 ) 4,433 Core income (loss) before income tax 449 348 22 (29 ) (125 ) — 665 Income tax (expense) benefit on core income (loss) (95 ) (72 ) (6 ) 33 26 — (114 ) Core income (loss) $ 354 $ 276 $ 16 $ 4 $ (99 ) $ — 551 Net investment gains (losses) 11 Income tax (expense) benefit on net investment gains (losses) (1 ) Net investment gains (losses), after tax 10 Net income $ 561 December 31, 2018 (In millions) Reinsurance receivables $ 649 $ 795 $ 250 $ 414 $ 2,347 $ — $ 4,455 Insurance receivables 947 1,277 284 9 (152 ) — 2,365 Deferred acquisition costs 308 230 95 — — — 633 Goodwill 117 — 29 — — — 146 Deferred non-insurance warranty acquisition expense 2,513 — — — — — 2,513 Insurance reserves Claim and claim adjustment expenses 5,465 8,743 1,750 3,601 2,425 — 21,984 Unearned premiums 2,132 1,454 475 122 — — 4,183 Future policy benefits — — — 10,597 — — 10,597 Deferred non-insurance warranty revenue 3,402 — — — — — 3,402 |
Revenues by line of business | The following table presents operating revenue by line of business for each reportable segment. Periods ended June 30 Three Months Six Months (In millions) 2019 2018 2019 2018 Specialty Management & Professional Liability $ 629 $ 627 $ 1,265 $ 1,251 Surety 151 145 290 274 Warranty & Alternative Risks 326 289 649 569 Specialty revenues 1,106 1,061 2,204 2,094 Commercial Middle Market 545 521 1,092 1,025 Small Business 115 120 236 239 Other Commercial Insurance 260 277 552 554 Commercial revenues 920 918 1,880 1,818 International Canada 68 63 134 121 Europe 88 91 179 179 Hardy 103 108 211 212 International revenues 259 262 524 512 Life & Group revenues 335 329 670 664 Corporate & Other revenues 9 5 18 11 Eliminations (1 ) — (4 ) (1 ) Total operating revenues 2,628 2,575 5,292 5,098 Net investment gains (losses) (18 ) (1 ) 13 11 Total revenues $ 2,610 $ 2,574 $ 5,305 $ 5,109 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Assets and Liabilities, Lessee | The following table presents operating lease ROU assets and lease liabilities. (In millions) June 30, 2019 Operating lease ROU assets $ 223 Operating lease liabilities 301 |
Maturities of Operating Lease Liabilities | The following table presents the maturities of operating lease liabilities as of June 30, 2019 . (In millions) Operating Leases 2019 (Excluding the six months ended June 30, 2019) $ 15 2020 39 2021 42 2022 38 2023 33 Thereafter 202 Total lease payments 369 Less: Discount (68 ) Total operating lease liabilities $ 301 |
Lease Terms and Discount Rates | The following table presents the weighted average remaining lease term for operating leases and weighted average discount rate used in calculating operating lease right-of-use assets. June 30, 2019 Weighted average remaining lease term 10.8 years Weighted average discount rate 3.4 % |
Schedule of Future Minimum Rental Payments for Operating Leases | The following table presents the expected future minimum lease payments to be made under non-cancelable operating leases as of December 31, 2018 . (In millions) Future Minimum Lease Payments 2019 $ 35 2020 39 2021 41 2022 38 2023 32 Thereafter 200 Total $ 385 |
General (Narrative) (Details)
General (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other assets | $ (1,749) | $ (1,445) | $ (1,208) |
CNAF Consolidated | Loews | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Noncontrolling interest, ownership percentage by parent | 89.00% | ||
Adjustments Due to Adoption of Topic 842 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other assets | $ 75 | $ (237) |
General (Adoption of Updated Gu
General (Adoption of Updated Guidance) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Property and equipment at cost (less accumulated depreciation) | $ 302 | $ 326 | $ 324 |
Other assets | 1,749 | 1,445 | 1,208 |
Other liabilities | 3,689 | 3,328 | $ 3,089 |
Adjustments Due to Adoption of Topic 842 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Property and equipment at cost (less accumulated depreciation) | 2 | ||
Other assets | $ (75) | 237 | |
Other liabilities | $ 239 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||||
Incremental common shares attributable to dilutive effect of share-based payment arrangements (in shares) | 776,000 | 835,000 | 872,000 | 929,000 | |
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 1,000 | 445,000 | 1,000 | 2,000 | |
Number of repurchased shares (in shares) | 365,695 | ||||
Cost of repurchased stock | $ 16,000,000 | $ 0 |
Investments (Net investment inc
Investments (Net investment income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net Investment Income [Line Items] | ||||
Gross investment income | $ 531 | $ 522 | $ 1,118 | $ 1,027 |
Investment expense | (16) | (16) | (32) | (31) |
Net investment income | 515 | 506 | 1,086 | 996 |
Fixed maturity securities | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 455 | 444 | 910 | 890 |
Equity securities | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 16 | 12 | 46 | 22 |
Limited partnership investments | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 37 | 40 | 113 | 70 |
Mortgage loans | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 12 | 14 | 24 | 25 |
Short term investments | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 9 | 6 | 19 | 12 |
Trading portfolio | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 2 | 3 | 4 | 5 |
Other | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | $ 0 | $ 3 | $ 2 | $ 3 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Gain (Loss) on Securities [Line Items] | |||||
Reduction of net unrealized gains on investments included in AOCI due to shadow adjustments | $ 1,816,000,000 | $ 1,816,000,000 | $ 1,078,000,000 | ||
Derivative, notional amount | 172,000,000 | 172,000,000 | 172,000,000 | ||
Derivative liability | (8,000,000) | (8,000,000) | |||
Derivative asset, fair value, gross asset | $ 4,000,000 | ||||
Commitments to purchase or fund privately placed debt securities | 875,000,000 | 875,000,000 | |||
Commitments to sell various privately placed debt securities | 85,000,000 | 85,000,000 | |||
Common Stock | |||||
Gain (Loss) on Securities [Line Items] | |||||
Equity securities, FV-NI, gain (loss) | 4,000,000 | $ 2,000,000 | 21,000,000 | $ 1,000,000 | |
Preferred stock | |||||
Gain (Loss) on Securities [Line Items] | |||||
Equity securities, FV-NI, gain (loss) | 11,000,000 | $ (10,000,000) | (53,000,000) | $ (25,000,000) | |
5.875%, face amount of $500, due August 15, 2020 | |||||
Gain (Loss) on Securities [Line Items] | |||||
Equity securities, FV-NI, gain (loss) | (21,000,000) | (21,000,000) | |||
Face amount | $ 500,000,000 | $ 500,000,000 |
Investments (Net realized inves
Investments (Net realized investment gains (losses)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Fixed maturity securities: | ||||
Gross gains | $ 28 | $ 37 | $ 64 | $ 106 |
Gross losses | (31) | (33) | (73) | (84) |
Net investment gains (losses) on fixed maturity securities | (3) | 4 | (9) | 22 |
Equity securities | 11 | (10) | 53 | (25) |
Derivatives | (6) | 4 | (11) | 9 |
Short term investments and other | (20) | 1 | (20) | 5 |
Net investment (losses) gains | $ (18) | $ (1) | $ 13 | $ 11 |
Investments (Components of othe
Investments (Components of other-than-temporary impairment losses recognized in earnings) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Debt Securities, Available-for-sale [Line Items] | ||||
Total fixed maturity securities available-for-sale | $ 6 | $ 0 | $ 20 | $ 6 |
Corporate and other bonds | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Total fixed maturity securities available-for-sale | 6 | 0 | 12 | 5 |
Asset-backed | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Total fixed maturity securities available-for-sale | $ 0 | $ 0 | $ 8 | $ 1 |
Investments (Summary of fixed m
Investments (Summary of fixed maturity and equity securities) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | $ 38,023 | $ 38,081 |
Gross Unrealized Gains | 3,673 | 1,982 |
Gross Unrealized Losses | 57 | 521 |
Estimated Fair Value | 41,639 | 39,542 |
Total fixed maturity securities trading | ||
Debt securities, amortized cost | 38,023 | 38,085 |
Debt securities | 41,639 | 39,546 |
Corporate and other bonds | ||
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | 19,654 | 18,764 |
Gross Unrealized Gains | 1,880 | 791 |
Gross Unrealized Losses | 44 | 395 |
Estimated Fair Value | 21,490 | 19,160 |
Total fixed maturity securities trading | ||
Debt securities | 22,120 | 19,814 |
Unrealized OTTI Losses (Gains) | 0 | 0 |
States, municipalities and political subdivisions | ||
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | 9,196 | 9,681 |
Gross Unrealized Gains | 1,507 | 1,076 |
Gross Unrealized Losses | 0 | 9 |
Estimated Fair Value | 10,703 | 10,748 |
Total fixed maturity securities trading | ||
Debt securities | 10,703 | 10,748 |
Unrealized OTTI Losses (Gains) | 0 | 0 |
Residential mortgage-backed | ||
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | 4,668 | 4,815 |
Gross Unrealized Gains | 131 | 68 |
Gross Unrealized Losses | 2 | 57 |
Estimated Fair Value | 4,797 | 4,826 |
Total fixed maturity securities trading | ||
Unrealized OTTI Losses (Gains) | (24) | (20) |
Commercial mortgage-backed | ||
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | 2,032 | 2,200 |
Gross Unrealized Gains | 93 | 28 |
Gross Unrealized Losses | 4 | 32 |
Estimated Fair Value | 2,121 | 2,196 |
Total fixed maturity securities trading | ||
Unrealized OTTI Losses (Gains) | 0 | 0 |
Other asset-backed | ||
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | 1,865 | 1,975 |
Gross Unrealized Gains | 40 | 11 |
Gross Unrealized Losses | 7 | 24 |
Estimated Fair Value | 1,898 | 1,962 |
Total fixed maturity securities trading | ||
Unrealized OTTI Losses (Gains) | (2) | 0 |
Asset-backed | ||
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | 8,565 | 8,990 |
Gross Unrealized Gains | 264 | 107 |
Gross Unrealized Losses | 13 | 113 |
Estimated Fair Value | 8,816 | 8,984 |
Total fixed maturity securities trading | ||
Debt securities | 8,816 | 8,984 |
Unrealized OTTI Losses (Gains) | (26) | (20) |
U.S. Treasury and obligations of government-sponsored enterprises | ||
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | 118 | 156 |
Gross Unrealized Gains | 5 | 3 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 123 | 159 |
Total fixed maturity securities trading | ||
Unrealized OTTI Losses (Gains) | 0 | 0 |
Foreign government | ||
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | 480 | 480 |
Gross Unrealized Gains | 17 | 5 |
Gross Unrealized Losses | 0 | 4 |
Estimated Fair Value | 497 | 481 |
Total fixed maturity securities trading | ||
Unrealized OTTI Losses (Gains) | 0 | 0 |
Redeemable preferred stock | ||
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | 10 | 10 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 10 | 10 |
Total fixed maturity securities trading | ||
Unrealized OTTI Losses (Gains) | 0 | 0 |
Fixed maturity securities | ||
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | 38,023 | 38,081 |
Gross Unrealized Gains | 3,673 | 1,982 |
Gross Unrealized Losses | 57 | 521 |
Estimated Fair Value | 41,639 | 39,542 |
Total fixed maturity securities trading | ||
Unrealized OTTI Losses (Gains) | (26) | (20) |
Total fixed maturity securities trading | ||
Total fixed maturity securities trading | ||
Cost or amortized cost, trading securities | $ 0 | 4 |
Estimated fair value, trading securities | $ 4 |
Investments (Securities in a gr
Investments (Securities in a gross unrealized loss position) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Corporate and other bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value, Less than 12 months | $ 776 | $ 8,543 |
Gross Unrealized Losses, Less than 12 Months | 22 | 340 |
Estimated Fair Value, 12 Months or Longer | 498 | 825 |
Gross Unrealized Losses, 12 Months or Longer | 22 | 55 |
Estimated Fair Value, Total | 1,274 | 9,368 |
Gross Unrealized Losses, Total | 44 | 395 |
States, municipalities and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value, Less than 12 months | 19 | 517 |
Gross Unrealized Losses, Less than 12 Months | 0 | 8 |
Estimated Fair Value, 12 Months or Longer | 2 | 5 |
Gross Unrealized Losses, 12 Months or Longer | 0 | 1 |
Estimated Fair Value, Total | 21 | 522 |
Gross Unrealized Losses, Total | 0 | 9 |
Residential mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value, Less than 12 months | 163 | 1,932 |
Gross Unrealized Losses, Less than 12 Months | 0 | 23 |
Estimated Fair Value, 12 Months or Longer | 134 | 1,119 |
Gross Unrealized Losses, 12 Months or Longer | 2 | 34 |
Estimated Fair Value, Total | 297 | 3,051 |
Gross Unrealized Losses, Total | 2 | 57 |
Commercial mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value, Less than 12 months | 58 | 728 |
Gross Unrealized Losses, Less than 12 Months | 2 | 10 |
Estimated Fair Value, 12 Months or Longer | 69 | 397 |
Gross Unrealized Losses, 12 Months or Longer | 2 | 22 |
Estimated Fair Value, Total | 127 | 1,125 |
Gross Unrealized Losses, Total | 4 | 32 |
Other asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value, Less than 12 months | 386 | 834 |
Gross Unrealized Losses, Less than 12 Months | 5 | 21 |
Estimated Fair Value, 12 Months or Longer | 77 | 125 |
Gross Unrealized Losses, 12 Months or Longer | 2 | 3 |
Estimated Fair Value, Total | 463 | 959 |
Gross Unrealized Losses, Total | 7 | 24 |
Asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value, Less than 12 months | 607 | 3,494 |
Gross Unrealized Losses, Less than 12 Months | 7 | 54 |
Estimated Fair Value, 12 Months or Longer | 280 | 1,641 |
Gross Unrealized Losses, 12 Months or Longer | 6 | 59 |
Estimated Fair Value, Total | 887 | 5,135 |
Gross Unrealized Losses, Total | 13 | 113 |
U.S. Treasury and obligations of government-sponsored enterprises | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value, Less than 12 months | 0 | 21 |
Gross Unrealized Losses, Less than 12 Months | 0 | 0 |
Estimated Fair Value, 12 Months or Longer | 4 | 19 |
Gross Unrealized Losses, 12 Months or Longer | 0 | 0 |
Estimated Fair Value, Total | 4 | 40 |
Gross Unrealized Losses, Total | 0 | 0 |
Foreign government | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value, Less than 12 months | 3 | 114 |
Gross Unrealized Losses, Less than 12 Months | 0 | 2 |
Estimated Fair Value, 12 Months or Longer | 11 | 124 |
Gross Unrealized Losses, 12 Months or Longer | 0 | 2 |
Estimated Fair Value, Total | 14 | 238 |
Gross Unrealized Losses, Total | 0 | 4 |
Fixed maturity securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value, Less than 12 months | 1,405 | 12,689 |
Gross Unrealized Losses, Less than 12 Months | 29 | 404 |
Estimated Fair Value, 12 Months or Longer | 795 | 2,614 |
Gross Unrealized Losses, 12 Months or Longer | 28 | 117 |
Estimated Fair Value, Total | 2,200 | 15,303 |
Gross Unrealized Losses, Total | $ 57 | $ 521 |
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 ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||||
Beginning balance of credit losses on fixed maturity securities | $ 17 | $ 25 | $ 18 | $ 27 |
Reductions for securities sold during the period | (1) | (4) | (2) | (6) |
Ending balance of credit losses on fixed maturity securities | $ 16 | $ 21 | $ 16 | $ 21 |
Investments (Contractual maturi
Investments (Contractual maturity) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Investments [Abstract] | ||
Due in one year or less, cost or amortized cost | $ 1,018 | $ 1,350 |
Due after one year through five years, cost or amortized cost | 8,097 | 7,979 |
Due after five years through ten years, cost or amortized cost | 16,403 | 16,859 |
Due after ten years, cost or amortized cost | 12,505 | 11,893 |
Cost or Amortized Cost | 38,023 | 38,081 |
Due in one year or less, estimated fair value | 1,032 | 1,359 |
Due after one year through five years, estimated fair value | 8,476 | 8,139 |
Due after five years through ten years, estimated fair value | 17,297 | 16,870 |
Due after ten years, estimated fair value | 14,834 | 13,174 |
Total Estimated Fair Value | $ 41,639 | $ 39,542 |
Fair Value (Assets and liabilit
Fair Value (Assets and liabilities measured at fair value on a recurring basis) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Fixed maturity securities: | ||
Debt securities | $ 41,639 | $ 39,546 |
Equity securities: | ||
Equity securities | 830 | 780 |
Short term and other | 1,411 | 1,165 |
Total assets | 43,880 | 41,491 |
Liabilities | ||
Other liabilities | 8 | (4) |
Total liabilities | 8 | (4) |
Corporate and other bonds | ||
Fixed maturity securities: | ||
Debt securities | 22,120 | 19,814 |
States, municipalities and political subdivisions | ||
Fixed maturity securities: | ||
Debt securities | 10,703 | 10,748 |
Asset-backed | ||
Fixed maturity securities: | ||
Debt securities | 8,816 | 8,984 |
Common Stock | ||
Equity securities: | ||
Equity securities | 135 | 148 |
Preferred stock | ||
Equity securities: | ||
Equity securities | 695 | 632 |
Level 1 | ||
Fixed maturity securities: | ||
Debt securities | 152 | 196 |
Equity securities: | ||
Equity securities | 180 | 192 |
Short term and other | 359 | 216 |
Total assets | 691 | 604 |
Liabilities | ||
Other liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Level 1 | Corporate and other bonds | ||
Fixed maturity securities: | ||
Debt securities | 152 | 196 |
Level 1 | States, municipalities and political subdivisions | ||
Fixed maturity securities: | ||
Debt securities | 0 | 0 |
Level 1 | Asset-backed | ||
Fixed maturity securities: | ||
Debt securities | 0 | 0 |
Level 1 | Common Stock | ||
Equity securities: | ||
Equity securities | 129 | 144 |
Level 1 | Preferred stock | ||
Equity securities: | ||
Equity securities | 51 | 48 |
Level 2 | ||
Fixed maturity securities: | ||
Debt securities | 40,956 | 38,931 |
Equity securities: | ||
Equity securities | 628 | 570 |
Short term and other | 1,052 | 949 |
Total assets | 42,636 | 40,450 |
Liabilities | ||
Other liabilities | 8 | (4) |
Total liabilities | 8 | (4) |
Level 2 | Corporate and other bonds | ||
Fixed maturity securities: | ||
Debt securities | 21,630 | 19,396 |
Level 2 | States, municipalities and political subdivisions | ||
Fixed maturity securities: | ||
Debt securities | 10,703 | 10,748 |
Level 2 | Asset-backed | ||
Fixed maturity securities: | ||
Debt securities | 8,623 | 8,787 |
Level 2 | Common Stock | ||
Equity securities: | ||
Equity securities | 0 | 0 |
Level 2 | Preferred stock | ||
Equity securities: | ||
Equity securities | 628 | 570 |
Level 3 | ||
Fixed maturity securities: | ||
Debt securities | 531 | 419 |
Equity securities: | ||
Equity securities | 22 | 18 |
Short term and other | 0 | 0 |
Total assets | 553 | 437 |
Liabilities | ||
Other liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Level 3 | Corporate and other bonds | ||
Fixed maturity securities: | ||
Debt securities | 338 | 222 |
Level 3 | States, municipalities and political subdivisions | ||
Fixed maturity securities: | ||
Debt securities | 0 | 0 |
Level 3 | Asset-backed | ||
Fixed maturity securities: | ||
Debt securities | 193 | 197 |
Level 3 | Common Stock | ||
Equity securities: | ||
Equity securities | 6 | 4 |
Level 3 | Preferred stock | ||
Equity securities: | ||
Equity securities | $ 16 | $ 14 |
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 ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, Beginning, Assets | $ 457 | $ 398 | $ 437 | $ 454 |
Reported in Other comprehensive income (loss) | 16 | (2) | 27 | (7) |
Total realized and unrealized investment gains (losses) | 16 | (3) | 29 | (4) |
Purchases | 78 | 43 | 154 | 73 |
Sales | 0 | (5) | 0 | (77) |
Settlements | (6) | (8) | (12) | (16) |
Transfers into Level 3 | 40 | 13 | 45 | 18 |
Transfers out of Level 3 | (32) | (53) | (100) | (63) |
Balance, Ending, Assets | 553 | 385 | 553 | 385 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2019 recognized in Net income (loss) | 0 | (1) | 3 | (3) |
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2019 recognized in Other comprehensive income (loss) | 15 | 25 | ||
Corporate and other bonds | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, Beginning, Assets | 253 | 100 | 222 | 98 |
Reported in Other comprehensive income (loss) | 12 | (1) | 20 | (1) |
Total realized and unrealized investment gains (losses) | 12 | (1) | 20 | (2) |
Purchases | 76 | 2 | 132 | 2 |
Sales | 0 | (5) | 0 | (5) |
Settlements | (2) | (2) | (4) | (4) |
Transfers into Level 3 | 0 | 0 | 0 | 5 |
Transfers out of Level 3 | (1) | 0 | (32) | 0 |
Balance, Ending, Assets | 338 | 94 | 338 | 94 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2019 recognized in Net income (loss) | 0 | 0 | 0 | 0 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2019 recognized in Other comprehensive income (loss) | 10 | 17 | ||
States, municipalities and political subdivisions | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, Beginning, Assets | 0 | 1 | 0 | 1 |
Reported in Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Total realized and unrealized investment gains (losses) | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Balance, Ending, Assets | 0 | 1 | 0 | 1 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2019 recognized in Net income (loss) | 0 | 0 | 0 | 0 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2019 recognized in Other comprehensive income (loss) | 0 | 0 | ||
Asset-backed | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, Beginning, Assets | 184 | 279 | 197 | 335 |
Reported in Other comprehensive income (loss) | 4 | (1) | 7 | (6) |
Total realized and unrealized investment gains (losses) | 4 | (1) | 7 | 1 |
Purchases | 0 | 41 | 20 | 71 |
Sales | 0 | 0 | 0 | (72) |
Settlements | (4) | (6) | (8) | (12) |
Transfers into Level 3 | 40 | 13 | 45 | 13 |
Transfers out of Level 3 | (31) | (53) | (68) | (63) |
Balance, Ending, Assets | 193 | 273 | 193 | 273 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2019 recognized in Net income (loss) | 0 | 0 | 0 | 0 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2019 recognized in Other comprehensive income (loss) | 5 | 8 | ||
Equity securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, Beginning, Assets | 20 | 18 | 18 | 20 |
Reported in Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Total realized and unrealized investment gains (losses) | 0 | (1) | 2 | (3) |
Purchases | 2 | 0 | 2 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Balance, Ending, Assets | 22 | 17 | 22 | 17 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2019 recognized in Net income (loss) | 0 | (1) | 3 | (3) |
Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2019 recognized in Other comprehensive income (loss) | 0 | 0 | ||
Reported in Net investment gains (losses) | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Reported in Net investment gains (losses) | 0 | (1) | 2 | 3 |
Reported in Net investment gains (losses) | Corporate and other bonds | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Reported in Net investment gains (losses) | 0 | 0 | 0 | (1) |
Reported in Net investment gains (losses) | States, municipalities and political subdivisions | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Reported in Net investment gains (losses) | 0 | 0 | 0 | 0 |
Reported in Net investment gains (losses) | Asset-backed | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Reported in Net investment gains (losses) | 0 | 0 | 0 | 7 |
Reported in Net investment gains (losses) | Equity securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Reported in Net investment gains (losses) | $ 0 | $ (1) | $ 2 | $ (3) |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
Other invested assets overseas deposit | $ 53 | $ 48 |
Fair Value (Quantitative inform
Fair Value (Quantitative information about significant unobservable inputs in the fair value measurement of level 3 assets) (Details) $ in Millions | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Estimated fair value | $ 43,880 | $ 41,491 |
Fixed maturity securities | Discounted cash flow | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Estimated fair value | $ 381 | $ 228 |
Measurement Input, Credit Spread | Discounted cash flow | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt securities, available-for-sale, measurement Input | 0.01 | 0.01 |
Measurement Input, Credit Spread | Discounted cash flow | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt securities, available-for-sale, measurement Input | 0.05 | 0.12 |
Measurement Input, Credit Spread | Discounted cash flow | Weighted Average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt securities, available-for-sale, measurement Input | 0.02 | 0.03 |
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 ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Financial Assets [Abstract] | ||
Mortgage loans | $ 916 | $ 839 |
Financial Liabilities [Abstract] | ||
Long term debt | 2,678 | 2,680 |
Carrying Amount | ||
Financial Assets [Abstract] | ||
Mortgage loans | 916 | 839 |
Note receivable | 20 | 35 |
Financial Liabilities [Abstract] | ||
Long term debt | 2,678 | 2,680 |
Estimated Fair Value | ||
Financial Assets [Abstract] | ||
Mortgage loans | 936 | 827 |
Note receivable | 20 | 35 |
Financial Liabilities [Abstract] | ||
Long term debt | 2,864 | 2,731 |
Level 1 | Estimated Fair Value | ||
Financial Assets [Abstract] | ||
Mortgage loans | 0 | 0 |
Note receivable | 0 | 0 |
Financial Liabilities [Abstract] | ||
Long term debt | 0 | 0 |
Level 2 | Estimated Fair Value | ||
Financial Assets [Abstract] | ||
Mortgage loans | 0 | 0 |
Note receivable | 0 | 0 |
Financial Liabilities [Abstract] | ||
Long term debt | 2,864 | 2,731 |
Level 3 | Estimated Fair Value | ||
Financial Assets [Abstract] | ||
Mortgage loans | 936 | 827 |
Note receivable | 20 | 35 |
Financial Liabilities [Abstract] | ||
Long term debt | $ 0 | $ 0 |
Claim and Claim Adjustment Ex_3
Claim and Claim Adjustment Expense Reserves (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2010 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Catastrophe losses net of reinsurance | $ 38 | $ 26 | $ 96 | $ 60 | ||
Asbestos and Environmental Reserves | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Net A&EP claim and allocated claim adjustment expense reserves ceded to NICO | $ 1,600 | |||||
Aggregate limit under A&EP Loss Portfolio Transfer | 4,000 | |||||
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 | |||||
Reinsurance premium paid to NICO under A&EP Loss Portfolio Transfer | 2,000 | |||||
Net reinsurance receivables transferrred to NICO under A&EP Loss Portfolio Transfer | 215 | |||||
Total consideration paid to NICO under AEP Loss Portfolio Transfer | $ 2,200 | |||||
Net A&EP adverse development before consideration of LPT | 0 | $ 0 | 0 | $ 113 | ||
Cumulative amounts ceded under AEP Loss Portfolio Transfer | 3,100 | 3,100 | $ 3,100 | |||
Deferred reinsurance benefit yet to be recognized | 338 | 338 | 374 | |||
Fair value of collateral trust account established by NICO under A&EP Loss Portfolio Transfer | $ 3,100 | $ 3,100 | $ 2,700 |
Claim and Claim Adjustment Ex_4
Claim and Claim Adjustment Expense Reserves (Reconciliation of claim and claim adjustment expense reserves) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Reserves, beginning of year: [Abstract] | ||
Gross | $ 21,984 | $ 22,004 |
Ceded | 4,019 | 3,934 |
Net reserves, beginning of year | 17,965 | 18,070 |
Net incurred claim and claim adjustment expenses: | ||
Provision for insured events of current year | 2,615 | 2,552 |
Increase (decrease) in provision for insured events of prior years | (36) | (112) |
Amortization of discount | 98 | 92 |
Total net incurred | 2,677 | 2,532 |
Net payments attributable to: | ||
Current year events | (315) | (312) |
Prior year events | (2,519) | (2,387) |
Total net payments | (2,834) | (2,699) |
Foreign currency translation adjustment and other | 55 | (70) |
Net reserves, end of period | 17,863 | 17,833 |
Ceded reserves, end of period | 3,866 | 4,157 |
Gross reserves, end of period | $ 21,729 | $ 21,990 |
Claim and Claim Adjustment Ex_5
Claim and Claim Adjustment Expense Reserves (Net prior year development) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Pretax (favorable) unfavorable premium development, excluding Life & Group | $ (31) | $ (59) | $ (45) | $ (98) |
Specialty | ||||
Segment Reporting Information [Line Items] | ||||
Pretax (favorable) unfavorable premium development, excluding Life & Group | (18) | (44) | (38) | (74) |
Commercial | ||||
Segment Reporting Information [Line Items] | ||||
Pretax (favorable) unfavorable premium development, excluding Life & Group | (12) | (13) | (20) | (22) |
International | ||||
Segment Reporting Information [Line Items] | ||||
Pretax (favorable) unfavorable premium development, excluding Life & Group | (1) | (2) | 13 | (2) |
Corporate & Other | ||||
Segment Reporting Information [Line Items] | ||||
Pretax (favorable) unfavorable premium development, excluding Life & Group | $ 0 | $ 0 | $ 0 | $ 0 |
Claim and Claim Adjustment Ex_6
Claim and Claim Adjustment Expense Reserves (Specialty - Net prior year claim and allocated claim adjustment expense reserve development) (Details) - Specialty - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Medical Professional Liability | $ 15 | $ 3 | $ 30 | $ 23 |
Other Professional Liability and Management Liability | (7) | (34) | (19) | (68) |
Surety | (15) | (15) | (40) | (30) |
Warranty | (7) | (6) | (7) | (6) |
Other | (4) | 8 | (2) | 7 |
Total pretax (favorable) unfavorable development | $ (18) | $ (44) | $ (38) | $ (74) |
Claim and Claim Adjustment Ex_7
Claim and Claim Adjustment Expense Reserves (Commercial - Net prior year claim and allocated claim adjustment expense reserve development) (Details) - Commercial - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Commercial Auto | $ (3) | $ 0 | $ (8) | $ (1) |
General Liability | 13 | 26 | (7) | 18 |
Workers' Compensation | (7) | (6) | (5) | (12) |
Property and Other | (15) | (33) | 0 | (27) |
Total pretax (favorable) unfavorable development | $ (12) | $ (13) | $ (20) | $ (22) |
Claim and Claim Adjustment Ex_8
Claim and Claim Adjustment Expense Reserves (International - Net prior year claim and allocated claim adjustment expense reserve development) (Details) - International - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Casualty | $ (5) | $ (6) | $ (5) | $ (6) |
Property | (4) | 13 | 11 | 12 |
Energy and Marine | 9 | (5) | 8 | (5) |
Specialty | (1) | (4) | (1) | (3) |
Total pretax (favorable) unfavorable development | $ (1) | $ (2) | $ 13 | $ (2) |
Claim and Claim Adjustment Ex_9
Claim and Claim Adjustment Expense Reserves (Impact of Loss Portfolio Transfer on the Consolidated Statement of Operations) (Details) - Asbestos and Environmental Reserves - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Net A&EP adverse development before consideration of LPT | $ 0 | $ 0 | $ 0 | $ 113 |
Provision for uncollectible third-party reinsurance on A&EP | 0 | 0 | 0 | (16) |
Total additional amounts ceded under LPT | 0 | 0 | 0 | 97 |
Retroactive reinsurance benefit recognized | (14) | (15) | (36) | (72) |
Pretax impact of deferred retroactive reinsurance | $ (14) | $ (15) | $ (36) | $ 25 |
Legal Proceedings, Contingenc_2
Legal Proceedings, Contingencies and Guarantees (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Guarantee Obligations | ||
Legal Proceedings, Commitments and Contingencies, and Guarantees [Line Items] | ||
Guarantor obligations, maximum exposure, undiscounted | $ 1,700 | |
Guarantee and Indemnification | ||
Legal Proceedings, Commitments and Contingencies, and Guarantees [Line Items] | ||
Guarantor obligations, current carrying value | $ 5 | $ 5 |
Benefit Plans (Narrative) (Deta
Benefit Plans (Narrative) (Details) - Pension Benefits - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Total non-service cost (benefit) (less than) | $ 0 | $ (6) | $ (1) | $ (10) |
Insurance Claims and Policyholder's Benefits, Including Policyholder's Dividends | ||||
Total non-service cost (benefit) (less than) | (1) | (2) | (1) | (3) |
Other Expense | ||||
Total non-service cost (benefit) (less than) | $ (1) | $ (4) | $ (1) | $ (7) |
Benefit Plans (Components of ne
Benefit Plans (Components of net periodic cost (benefit)) (Details) - Pension Benefits - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost on projected benefit obligation | 25 | 24 | 50 | 47 |
Expected return on plan assets | (35) | (40) | (71) | (80) |
Amortization of net actuarial (gain) loss | 10 | 9 | 20 | 18 |
Settlement loss | 0 | 1 | 0 | 5 |
Total non-service cost (benefit) | 0 | (6) | (1) | (10) |
Total net periodic pension cost (benefit) | $ 0 | $ (6) | $ (1) | $ (10) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) by Component Schedule of Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Total stockholder's equity at beginning of period | $ 11,217 | |||
Other comprehensive income (loss) before reclassifications | $ 433 | $ (209) | 974 | $ (621) |
Amounts reclassified from accumulated other comprehensive income (loss) net of tax | (11) | (4) | (24) | 0 |
Other comprehensive income (loss) after tax (expense) benefit | 444 | (205) | 998 | (621) |
Total stockholder's equity at end of period | 12,087 | 11,415 | 12,087 | 11,415 |
Reclassification from AOCI, tax | 2 | 1 | 5 | 0 |
Tax (expense) benefit on other comprehensive income (loss) | (117) | 45 | (261) | 153 |
Net unrealized gains (losses) on investments with OTTI losses | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Total stockholder's equity at beginning of period | 20 | 21 | 16 | 30 |
Other comprehensive income (loss) before reclassifications | (1) | (1) | 3 | (11) |
Amounts reclassified from accumulated other comprehensive income (loss) net of tax | (1) | 0 | (1) | (1) |
Other comprehensive income (loss) after tax (expense) benefit | 0 | (1) | 4 | (10) |
Total stockholder's equity at end of period | 20 | 20 | 20 | 20 |
Reclassification from AOCI, tax | 0 | 0 | 0 | 0 |
Tax (expense) benefit on other comprehensive income (loss) | (1) | 1 | (2) | 3 |
Net unrealized gains (losses) on other investments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Total stockholder's equity at beginning of period | 587 | 430 | 61 | 859 |
Other comprehensive income (loss) before reclassifications | 434 | (156) | 955 | (570) |
Amounts reclassified from accumulated other comprehensive income (loss) net of tax | (2) | 3 | (7) | 18 |
Other comprehensive income (loss) after tax (expense) benefit | 436 | (159) | 962 | (588) |
Total stockholder's equity at end of period | 1,023 | 271 | 1,023 | 271 |
Reclassification from AOCI, tax | 0 | (1) | 1 | (5) |
Tax (expense) benefit on other comprehensive income (loss) | (114) | 46 | (255) | 155 |
Pension and postretirement benefits | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Total stockholder's equity at beginning of period | (768) | (765) | (775) | (775) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | (1) | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) net of tax | (8) | (7) | (16) | (17) |
Other comprehensive income (loss) after tax (expense) benefit | 8 | 7 | 15 | 17 |
Total stockholder's equity at end of period | (760) | (758) | (760) | (758) |
Reclassification from AOCI, tax | 2 | 2 | 4 | 5 |
Tax (expense) benefit on other comprehensive income (loss) | (2) | (2) | (4) | (5) |
Cumulative foreign currency translation adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Total stockholder's equity at beginning of period | (163) | (86) | (180) | (98) |
Other comprehensive income (loss) before reclassifications | 0 | (52) | 17 | (40) |
Amounts reclassified from accumulated other comprehensive income (loss) net of tax | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) after tax (expense) benefit | 0 | (52) | 17 | (40) |
Total stockholder's equity at end of period | (163) | (138) | (163) | (138) |
Reclassification from AOCI, tax | 0 | 0 | 0 | 0 |
Tax (expense) benefit on other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Accumulated other comprehensive income (loss) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Total stockholder's equity at beginning of period | (324) | (400) | (878) | 16 |
Total stockholder's equity at end of period | $ 120 | $ (605) | $ 120 | $ (605) |
Business Segments (Narrative) (
Business Segments (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2019segments | |
Core Segments - Specialty, Commercial and International | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 3 |
Non-Core Segments, Life & Group Non-Core and Corporate and Other Non-Core | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 2 |
Business Segments (Income State
Business Segments (Income Statement Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Operating revenues | ||||
Net earned premiums | $ 1,824 | $ 1,815 | $ 3,627 | $ 3,600 |
Net investment income | 515 | 506 | 1,086 | 996 |
Non-insurance warranty revenue | 285 | 248 | 566 | 486 |
Other revenues | 4 | 6 | 13 | 16 |
Total operating revenues | 2,628 | 2,575 | 5,292 | 5,098 |
Claims, Benefits and Expenses | ||||
Net incurred claims and benefits | 1,346 | 1,321 | 2,697 | 2,654 |
Policyholders’ dividends | 6 | 6 | 12 | 12 |
Amortization of deferred acquisition costs | 338 | 359 | 680 | 655 |
Non-insurance warranty expense | 263 | 225 | 523 | 441 |
Other insurance related expenses | 258 | 236 | 509 | 513 |
Other expenses | 57 | 97 | 123 | 158 |
Total claims, benefits and expenses | 2,268 | 2,244 | 4,544 | 4,433 |
Core income (loss) before income tax | 360 | 331 | 748 | 665 |
Income tax (expense) benefit on core income (loss) | (66) | (61) | (136) | (114) |
Core income (loss) | 294 | 270 | 612 | 551 |
Net investment gains (losses) | (18) | (1) | 13 | 11 |
Income tax (expense) benefit on net investment gains (losses) | 2 | 1 | (5) | (1) |
Net investment gains (losses), after tax | (16) | 0 | 8 | 10 |
Net income | 278 | 270 | 620 | 561 |
Operating Segments | Specialty | ||||
Operating revenues | ||||
Net earned premiums | 688 | 683 | 1,349 | 1,355 |
Net investment income | 134 | 130 | 289 | 252 |
Non-insurance warranty revenue | 285 | 248 | 566 | 486 |
Other revenues | (1) | 0 | 0 | 1 |
Total operating revenues | 1,106 | 1,061 | 2,204 | 2,094 |
Claims, Benefits and Expenses | ||||
Net incurred claims and benefits | 395 | 372 | 787 | 751 |
Policyholders’ dividends | 1 | 1 | 2 | 2 |
Amortization of deferred acquisition costs | 152 | 149 | 299 | 294 |
Non-insurance warranty expense | 263 | 225 | 523 | 441 |
Other insurance related expenses | 76 | 70 | 146 | 134 |
Other expenses | 12 | 12 | 24 | 23 |
Total claims, benefits and expenses | 899 | 829 | 1,781 | 1,645 |
Core income (loss) before income tax | 207 | 232 | 423 | 449 |
Income tax (expense) benefit on core income (loss) | (46) | (49) | (93) | (95) |
Core income (loss) | 161 | 183 | 330 | 354 |
Operating Segments | Commercial | ||||
Operating revenues | ||||
Net earned premiums | 763 | 753 | 1,526 | 1,496 |
Net investment income | 154 | 157 | 344 | 306 |
Non-insurance warranty revenue | 0 | 0 | 0 | 0 |
Other revenues | 3 | 8 | 10 | 16 |
Total operating revenues | 920 | 918 | 1,880 | 1,818 |
Claims, Benefits and Expenses | ||||
Net incurred claims and benefits | 507 | 470 | 1,017 | 938 |
Policyholders’ dividends | 5 | 5 | 10 | 10 |
Amortization of deferred acquisition costs | 130 | 127 | 257 | 248 |
Non-insurance warranty expense | 0 | 0 | 0 | 0 |
Other insurance related expenses | 119 | 126 | 249 | 253 |
Other expenses | 7 | 10 | 18 | 21 |
Total claims, benefits and expenses | 768 | 738 | 1,551 | 1,470 |
Core income (loss) before income tax | 152 | 180 | 329 | 348 |
Income tax (expense) benefit on core income (loss) | (32) | (37) | (70) | (72) |
Core income (loss) | 120 | 143 | 259 | 276 |
Operating Segments | International | ||||
Operating revenues | ||||
Net earned premiums | 243 | 248 | 493 | 484 |
Net investment income | 15 | 15 | 30 | 29 |
Non-insurance warranty revenue | 0 | 0 | 0 | 0 |
Other revenues | 1 | (1) | 1 | (1) |
Total operating revenues | 259 | 262 | 524 | 512 |
Claims, Benefits and Expenses | ||||
Net incurred claims and benefits | 147 | 166 | 309 | 308 |
Policyholders’ dividends | 0 | 0 | 0 | 0 |
Amortization of deferred acquisition costs | 56 | 83 | 124 | 113 |
Non-insurance warranty expense | 0 | 0 | 0 | 0 |
Other insurance related expenses | 34 | 10 | 59 | 66 |
Other expenses | 3 | 7 | 7 | 3 |
Total claims, benefits and expenses | 240 | 266 | 499 | 490 |
Core income (loss) before income tax | 19 | (4) | 25 | 22 |
Income tax (expense) benefit on core income (loss) | (2) | (3) | (2) | (6) |
Core income (loss) | 17 | (7) | 23 | 16 |
Operating Segments | Life & Group | ||||
Operating revenues | ||||
Net earned premiums | 130 | 131 | 260 | 265 |
Net investment income | 205 | 198 | 409 | 398 |
Non-insurance warranty revenue | 0 | 0 | 0 | 0 |
Other revenues | 0 | 0 | 1 | 1 |
Total operating revenues | 335 | 329 | 670 | 664 |
Claims, Benefits and Expenses | ||||
Net incurred claims and benefits | 309 | 327 | 617 | 630 |
Policyholders’ dividends | 0 | 0 | 0 | 0 |
Amortization of deferred acquisition costs | 0 | 0 | 0 | 0 |
Non-insurance warranty expense | 0 | 0 | 0 | 0 |
Other insurance related expenses | 30 | 30 | 58 | 60 |
Other expenses | 2 | 1 | 4 | 3 |
Total claims, benefits and expenses | 341 | 358 | 679 | 693 |
Core income (loss) before income tax | (6) | (29) | (9) | (29) |
Income tax (expense) benefit on core income (loss) | 13 | 19 | 26 | 33 |
Core income (loss) | 7 | (10) | 17 | 4 |
Operating Segments | Corporate & Other | ||||
Operating revenues | ||||
Net earned premiums | 0 | 0 | 0 | 0 |
Net investment income | 7 | 6 | 14 | 11 |
Non-insurance warranty revenue | 0 | 0 | 0 | 0 |
Other revenues | 2 | (1) | 4 | 0 |
Total operating revenues | 9 | 5 | 18 | 11 |
Claims, Benefits and Expenses | ||||
Net incurred claims and benefits | (12) | (14) | (33) | 27 |
Policyholders’ dividends | 0 | 0 | 0 | 0 |
Amortization of deferred acquisition costs | 0 | 0 | 0 | 0 |
Non-insurance warranty expense | 0 | 0 | 0 | 0 |
Other insurance related expenses | (1) | 0 | (2) | 0 |
Other expenses | 34 | 67 | 73 | 109 |
Total claims, benefits and expenses | 21 | 53 | 38 | 136 |
Core income (loss) before income tax | (12) | (48) | (20) | (125) |
Income tax (expense) benefit on core income (loss) | 1 | 9 | 3 | 26 |
Core income (loss) | (11) | (39) | (17) | (99) |
Eliminations | ||||
Operating revenues | ||||
Net earned premiums | 0 | 0 | (1) | 0 |
Net investment income | 0 | 0 | 0 | 0 |
Non-insurance warranty revenue | 0 | 0 | 0 | 0 |
Other revenues | (1) | 0 | (3) | (1) |
Total operating revenues | (1) | 0 | (4) | (1) |
Claims, Benefits and Expenses | ||||
Net incurred claims and benefits | 0 | 0 | 0 | 0 |
Policyholders’ dividends | 0 | 0 | 0 | 0 |
Amortization of deferred acquisition costs | 0 | 0 | 0 | 0 |
Non-insurance warranty expense | 0 | 0 | 0 | 0 |
Other insurance related expenses | 0 | 0 | (1) | 0 |
Other expenses | (1) | 0 | (3) | (1) |
Total claims, benefits and expenses | (1) | 0 | (4) | (1) |
Core income (loss) before income tax | 0 | 0 | 0 | 0 |
Income tax (expense) benefit on core income (loss) | 0 | 0 | 0 | 0 |
Core income (loss) | $ 0 | $ 0 | $ 0 | $ 0 |
Business Segments (Balance Shee
Business Segments (Balance Sheet Information) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Reinsurance receivables | $ 4,263 | $ 4,455 |
Insurance receivables | 2,690 | 2,365 |
Deferred acquisition costs | 681 | 633 |
Goodwill | 146 | 146 |
Deferred non-insurance warranty acquisition expense | 2,678 | 2,513 |
Insurance reserves | ||
Claim and claim adjustment expenses | 21,729 | 21,984 |
Unearned premiums | 4,648 | 4,183 |
Future policy benefits | 11,537 | 10,597 |
Deferred non-insurance warranty revenue | 3,595 | 3,402 |
Operating Segments | Specialty | ||
Segment Reporting Information [Line Items] | ||
Reinsurance receivables | 696 | 649 |
Insurance receivables | 1,002 | 947 |
Deferred acquisition costs | 316 | 308 |
Goodwill | 117 | 117 |
Deferred non-insurance warranty acquisition expense | 2,678 | 2,513 |
Insurance reserves | ||
Claim and claim adjustment expenses | 5,396 | 5,465 |
Unearned premiums | 2,261 | 2,132 |
Future policy benefits | 0 | 0 |
Deferred non-insurance warranty revenue | 3,595 | 3,402 |
Operating Segments | Commercial | ||
Segment Reporting Information [Line Items] | ||
Reinsurance receivables | 766 | 795 |
Insurance receivables | 1,362 | 1,277 |
Deferred acquisition costs | 264 | 230 |
Goodwill | 0 | 0 |
Deferred non-insurance warranty acquisition expense | 0 | 0 |
Insurance reserves | ||
Claim and claim adjustment expenses | 8,580 | 8,743 |
Unearned premiums | 1,721 | 1,454 |
Future policy benefits | 0 | 0 |
Deferred non-insurance warranty revenue | 0 | 0 |
Operating Segments | International | ||
Segment Reporting Information [Line Items] | ||
Reinsurance receivables | 242 | 250 |
Insurance receivables | 318 | 284 |
Deferred acquisition costs | 101 | 95 |
Goodwill | 29 | 29 |
Deferred non-insurance warranty acquisition expense | 0 | 0 |
Insurance reserves | ||
Claim and claim adjustment expenses | 1,800 | 1,750 |
Unearned premiums | 534 | 475 |
Future policy benefits | 0 | 0 |
Deferred non-insurance warranty revenue | 0 | 0 |
Operating Segments | Life & Group | ||
Segment Reporting Information [Line Items] | ||
Reinsurance receivables | 399 | 414 |
Insurance receivables | 7 | 9 |
Deferred acquisition costs | 0 | 0 |
Goodwill | 0 | 0 |
Deferred non-insurance warranty acquisition expense | 0 | 0 |
Insurance reserves | ||
Claim and claim adjustment expenses | 3,710 | 3,601 |
Unearned premiums | 133 | 122 |
Future policy benefits | 11,537 | 10,597 |
Deferred non-insurance warranty revenue | 0 | 0 |
Operating Segments | Corporate & Other | ||
Segment Reporting Information [Line Items] | ||
Reinsurance receivables | 2,160 | 2,347 |
Insurance receivables | 1 | (152) |
Deferred acquisition costs | 0 | 0 |
Goodwill | 0 | 0 |
Deferred non-insurance warranty acquisition expense | 0 | 0 |
Insurance reserves | ||
Claim and claim adjustment expenses | 2,243 | 2,425 |
Unearned premiums | 0 | 0 |
Future policy benefits | 0 | 0 |
Deferred non-insurance warranty revenue | 0 | 0 |
Eliminations | ||
Segment Reporting Information [Line Items] | ||
Reinsurance receivables | 0 | 0 |
Insurance receivables | 0 | 0 |
Deferred acquisition costs | 0 | 0 |
Goodwill | 0 | 0 |
Deferred non-insurance warranty acquisition expense | 0 | 0 |
Insurance reserves | ||
Claim and claim adjustment expenses | 0 | 0 |
Unearned premiums | (1) | 0 |
Future policy benefits | 0 | 0 |
Deferred non-insurance warranty revenue | $ 0 | $ 0 |
Business Segments (Revenues by
Business Segments (Revenues by Line of Business) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues | $ 2,610 | $ 2,574 | $ 5,305 | $ 5,109 |
Net investment gains (losses) | (18) | (1) | 13 | 11 |
Operating Segments | Specialty | ||||
Revenues | 1,106 | 1,061 | 2,204 | 2,094 |
Operating Segments | Commercial | ||||
Revenues | 920 | 918 | 1,880 | 1,818 |
Operating Segments | International | ||||
Revenues | 259 | 262 | 524 | 512 |
Operating Segments | Life & Group | ||||
Revenues | 335 | 329 | 670 | 664 |
Operating Segments | Corporate & Other | ||||
Revenues | 9 | 5 | 18 | 11 |
Eliminations | ||||
Revenues | (1) | 0 | (4) | (1) |
Total operating revenues | ||||
Revenues | 2,628 | 2,575 | 5,292 | 5,098 |
Management & Professional Liability | Operating Segments | Specialty | ||||
Revenues | 629 | 627 | 1,265 | 1,251 |
Surety | Operating Segments | Specialty | ||||
Revenues | 151 | 145 | 290 | 274 |
Warranty & Alternative Risks | Operating Segments | Specialty | ||||
Revenues | 326 | 289 | 649 | 569 |
Middle Market | Operating Segments | Commercial | ||||
Revenues | 545 | 521 | 1,092 | 1,025 |
Small Business | Operating Segments | Commercial | ||||
Revenues | 115 | 120 | 236 | 239 |
Other Commercial Insurance | Operating Segments | Commercial | ||||
Revenues | 260 | 277 | 552 | 554 |
Canada | Operating Segments | International | ||||
Revenues | 68 | 63 | 134 | 121 |
Europe | Operating Segments | International | ||||
Revenues | 88 | 91 | 179 | 179 |
Hardy | Operating Segments | International | ||||
Revenues | $ 103 | $ 108 | $ 211 | $ 212 |
Non-Insurance Revenues from C_2
Non-Insurance Revenues from Contracts with Customers (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |||||
Deferred non-insurance warranty revenue | $ 3,595 | $ 3,595 | $ 3,402 | ||
Contract with customer, liability, revenue recognized | $ 246 | $ 213 | $ 511 | $ 435 |
Non-Insurance Revenues from C_3
Non-Insurance Revenues from Contracts with Customers (Performance Obligation) (Details) $ in Millions | Jun. 30, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Remaining performance obligation, amount | $ 530 |
Remaining performance obligation, expected timing of satisfaction, period | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Remaining performance obligation, amount | $ 927 |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Remaining performance obligation, amount | $ 746 |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Remaining performance obligation, amount | $ 1,400 |
Remaining performance obligation, expected timing of satisfaction, period |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 9 | $ 19 |
Variable lease cost | 4 | 8 |
Operating lease payments | $ 9 | $ 17 |
Leases (Assets and Liabilities)
Leases (Assets and Liabilities) (Details) $ in Millions | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
Operating lease ROU assets | $ 223 |
Operating lease liabilities | $ 301 |
Leases (Maturities of Operating
Leases (Maturities of Operating Lease Liabilities) (Details) $ in Millions | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
2019 (Excluding the six months ended June 30, 2019) | $ 15 |
2020 | 39 |
2021 | 42 |
2022 | 38 |
2023 | 33 |
Thereafter | 202 |
Total lease payments | 369 |
Less: Discount | (68) |
Total operating lease liabilities | $ 301 |
Leases (Lease Terms and Discont
Leases (Lease Terms and Discont Rates) (Details) | Jun. 30, 2019 |
Leases [Abstract] | |
Weighted average remaining lease term | 10 years 9 months 18 days |
Weighted average discount rate | 3.40% |
Leases (Minimum Lease Payments)
Leases (Minimum Lease Payments) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 35 |
2020 | 39 |
2021 | 41 |
2022 | 38 |
2023 | 32 |
Thereafter | 200 |
Total | $ 385 |