Cover Page Cover Page
Cover Page Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 30, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
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, Postal Zip Code | 60606 | |
Entity Address, City or Town | Chicago, | |
Entity Address, State or Province | IL | |
City Area Code | 312 | |
Local Phone Number | 822-5000 | |
Title of 12(b) Security | Common Stock, Par value $2.50 | |
Trading Symbol | "CNA" | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 271,376,098 | |
Entity Central Index Key | 0000021175 | |
Current Fiscal Year End Date | --03-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
New York Stock Exchange | ||
Entity Information [Line Items] | ||
Security Exchange Name | NYSE | |
Chicago Stock Exchange | ||
Entity Information [Line Items] | ||
Security Exchange Name | CHX |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues | ||
Net earned premiums | $ 1,869 | $ 1,803 |
Net investment income | 329 | 571 |
Net investment (losses) gains | (216) | 31 |
Non-insurance warranty revenue | 301 | 281 |
Other revenues | 8 | 9 |
Total revenues | 2,291 | 2,695 |
Claims, Benefits and Expenses | ||
Insurance claims and policyholders’ benefits | 1,425 | 1,357 |
Amortization of deferred acquisition costs | 344 | 342 |
Non-insurance warranty expense | 281 | 260 |
Other operating expenses | 299 | 283 |
Interest | 31 | 34 |
Total claims, benefits and expenses | 2,380 | 2,276 |
(Loss) income before income tax | (89) | 419 |
Income tax benefit (expense) | 28 | (77) |
Net (loss) income | $ (61) | $ 342 |
Basic earnings per share (in usd per share) | $ (0.23) | $ 1.26 |
Diluted earnings per share (in usd per share) | $ (0.23) | $ 1.25 |
Weighted Average Outstanding Common Stock and Common Stock Equivalents | ||
Basic (loss) earnings per share (in shares) | 271.5 | 271.6 |
Diluted (loss) earnings per share (in shares) | 271.5 | 272.6 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net (loss) income | $ (61) | $ 342 |
Other Comprehensive (Loss) Income, net of tax | ||
Net unrealized gains and losses on investments | (1,055) | 530 |
Foreign currency translation adjustment | (77) | 17 |
Pension and postretirement benefits | 11 | 7 |
Other comprehensive (loss) income, net of tax | (1,121) | 554 |
Total comprehensive (loss) income | (1,182) | 896 |
Net unrealized gains and losses on investments with an allowance for credit losses | ||
Other Comprehensive (Loss) Income, net of tax | ||
Net unrealized gains and losses on investments | (11) | 0 |
Net unrealized gains and losses on other investments | ||
Other Comprehensive (Loss) Income, net of tax | ||
Net unrealized gains and losses on investments | $ (1,044) | $ 530 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Investments: | ||
Fixed maturity securities at fair value (amortized cost of $38,034 and $38,126, less allowance for credit loss of $49 and $-) | $ 40,098 | $ 42,207 |
Equity securities at fair value (cost of $936 and $820) | 799 | 865 |
Limited partnership investments | 1,509 | 1,752 |
Other invested assets | 63 | 65 |
Mortgage loans (less allowance for uncollectible receivables of $20 and $-) | 1,021 | 994 |
Short term investments | 596 | 1,861 |
Total investments | 44,086 | 47,744 |
Cash | 857 | 242 |
Reinsurance receivables (less allowance for uncollectible receivables of $23 and $25) | 4,328 | 4,179 |
Insurance receivables (less allowance for uncollectible receivables of $30 and $32) | 2,502 | 2,449 |
Accrued investment income | 402 | 395 |
Deferred acquisition costs | 683 | 662 |
Deferred income taxes | 518 | 199 |
Property and equipment at cost (less accumulated depreciation of $224 and $215) | 271 | 282 |
Goodwill | 145 | 147 |
Deferred non-insurance warranty acquisition expense | 2,905 | 2,840 |
Other assets (includes $15 and $21 due from Loews Corporation) | 1,708 | 1,473 |
Total assets | 58,405 | 60,612 |
Insurance reserves: | ||
Claim and claim adjustment expenses | 21,872 | 21,720 |
Unearned premiums | 4,745 | 4,583 |
Future policy benefits | 11,734 | 12,311 |
Long term debt | 2,680 | 2,679 |
Deferred non-insurance warranty revenue | 3,848 | 3,779 |
Other liabilities (includes $7 and $21 due to Loews Corporation) | 3,164 | 3,325 |
Total liabilities | 48,043 | 48,397 |
Commitments and contingencies (Notes C and F) | ||
Stockholders' Equity | ||
Common stock ($2.50 par value; 500,000,000 shares authorized; 273,040,243 shares issued; 271,370,988 and 271,412,591 shares outstanding) | 683 | 683 |
Additional paid-in capital | 2,187 | 2,203 |
Retained earnings | 8,634 | 9,348 |
Accumulated other comprehensive (loss) income | (1,070) | 51 |
Treasury stock (1,669,255 and 1,627,652 shares), at cost | (72) | (70) |
Total stockholders’ equity | 10,362 | 12,215 |
Total liabilities and stockholders' equity | $ 58,405 | $ 60,612 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets - (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Fixed maturities securities at amortized cost | $ 38,034 | $ 38,126 |
Marketable securities, fixed maturities, amortized cost | 49 | 0 |
Equity securities at cost | 936 | 820 |
Mortgage loans on real estate, commercial and consumer, allowance for credit loss | 20 | 0 |
Allowance for uncollectible reinsurance | 23 | 25 |
Allowance for uncollectible insurance receivables | 30 | 32 |
Accumulated depreciation on property and equipment | 224 | 215 |
Due to related parties | 7 | 21 |
Due from related parties | $ 15 | $ 21 |
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) | 271,370,988 | 271,412,591 |
Treasury stock, shares (in shares) | 1,669,255 | 1,627,652 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash Flows from Operating Activities | ||
Net (loss) income | $ (61) | $ 342 |
Adjustments to reconcile net (loss) income to net cash flows provided by operating activities: | ||
Deferred Income Tax Expense (Benefit) | (37) | 32 |
Trading portfolio activity | 7 | (3) |
Net investment losses (gains) | 216 | (31) |
Equity method investees | 98 | 14 |
Net amortization of investments | (15) | (25) |
Depreciation and amortization | 16 | 19 |
Changes in: | ||
Receivables, net | (229) | 44 |
Accrued investment income | (8) | (15) |
Deferred acquisition costs | (27) | (30) |
Insurance reserves | 510 | 57 |
Other, net | (258) | (117) |
Net cash flows provided by operating activities | 212 | 287 |
Dispositions: | ||
Fixed maturity securities - sales | 823 | 2,259 |
Fixed maturity securities - maturities, calls and redemptions | 799 | 576 |
Equity securities | 98 | 64 |
Limited partnerships | 204 | 186 |
Mortgage loans | 15 | 35 |
Purchases: | ||
Fixed maturity securities | (1,818) | (2,447) |
Equity securities | (220) | (36) |
Limited partnerships | (32) | (114) |
Mortgage loans | 61 | 59 |
Change in other investments | (6) | (6) |
Change in short term investments | 1,267 | (177) |
Purchases of property and equipment | (3) | (8) |
Other, net | 21 | 16 |
Net cash flows provided by investing activities | 1,087 | 289 |
Cash Flows from Financing Activities | ||
Dividends paid to common stockholders | (649) | (643) |
Purchase of treasury stock | (18) | (14) |
Other, net | (8) | (8) |
Net cash flows used by financing activities | (675) | (665) |
Effect of foreign exchange rate changes on cash | (9) | 2 |
Net change in cash | 615 | (87) |
Cash, beginning of year | 242 | 310 |
Cash, end of period | $ 857 | $ 223 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Treasury Stock | Previously ReportedRetained Earnings | Previously ReportedAccumulated Other Comprehensive (Loss) Income |
Total stockholder's equity at beginning of period at Dec. 31, 2018 | $ 683 | $ 2,192 | $ (878) | $ (57) | $ 9,277 | $ (878) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock-based compensation | (8) | 7 | ||||||
Dividends to common stockholders ($2.37 and $2.35 per share) | $ (643) | |||||||
Net (loss) income | $ 342 | 342 | ||||||
Other comprehensive (loss) income | 554 | 554 | ||||||
Purchase of treasury stock | (14) | (14) | ||||||
Total stockholder's equity at end of period at Mar. 31, 2019 | 11,455 | 683 | 2,184 | 8,976 | (324) | (64) | ||
Total stockholder's equity at beginning of period at Dec. 31, 2019 | 12,215 | 683 | 2,203 | 51 | (70) | $ 9,348 | $ 51 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock-based compensation | (16) | 16 | ||||||
Dividends to common stockholders ($2.37 and $2.35 per share) | (648) | |||||||
Net (loss) income | (61) | (61) | ||||||
Other comprehensive (loss) income | (1,121) | (1,121) | ||||||
Purchase of treasury stock | (18) | (18) | ||||||
Total stockholder's equity at end of period at Mar. 31, 2020 | $ 10,362 | $ 683 | $ 2,187 | $ 8,634 | $ (1,070) | $ (72) |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared per share (usd per share) | $ 2.37 | $ 2.35 |
General
General | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 . 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, 2019 , 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 March 31, 2020 and for the three months ended March 31, 2020 and 2019 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 2016-13: In June 2016 the Financial Accounting Standards Board (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 the Company’s results of operations. For financial assets measured at cost, the expected credit loss model requires immediate recognition of estimated credit losses over the life of the asset and presentation of the asset at the net amount expected to be collected. This new guidance applies to mortgage loan investments, reinsurance and insurance receivables and other financing receivables. For available-for-sale fixed maturity securities carried at fair value, estimated credit losses will continue to be measured at the present value of expected cash flows, however, the other than temporary impairment (OTTI) concept has been eliminated. Under the previous guidance, estimated credit impairments resulted in a write-down of amortized cost. Under the new guidance, estimated credit losses are recognized through an allowance and reversals of the allowance are permitted if the estimate of credit losses declines. For available-for-sale fixed maturity securities where the Company has an intent to sell, impairment will continue to result in a write-down of amortized cost. On January 1, 2020, the Company adopted the updated guidance using a modified retrospective method with a cumulative effect adjustment recorded to beginning Retained earnings. Prior period amounts have not been adjusted and continue to be reported in accordance with the previous accounting guidance. A prospective transition approach is required for available-for-sale fixed maturity securities that were purchased with credit deterioration (PCD assets) or have recognized an OTTI write-down prior to the effective date. The cumulative effect of the accounting change resulted in a $5 million decrease in Retained earnings, with a corresponding $7 million allowance for credit losses recorded for Mortgage loans partially offset by a $2 million tax impact. The allowance for uncollectible insurance and reinsurance receivables was unchanged as a result of adopting the new guidance. At adoption, an allowance for credit losses of $6 million was established for available-for-sale fixed maturity securities that were PCD assets, with a corresponding increase to amortized cost, resulting in no adjustment to the carrying value of the securities. Below is a summary of the significant accounting policies impacted by the adoption of ASU 2016-13. The allowance for credit losses is a valuation account that is reported as a reduction of a financial asset’s cost basis and is measured on a pool basis when similar risk characteristics exist. Management estimates the allowance using relevant available information from both internal and external sources. Historical credit loss experience provides the basis for the estimation of expected credit losses and adjustments may be made to reflect current conditions and reasonable and supportable forecasts. Adjustments to historical loss information are made for any additional factors that come to the Company’s attention. This could include significant shifts in counterparty financial strength ratings, aging of past due receivables, amounts sent to collection agencies, or other underlying portfolio changes. Amounts are considered past due when payments have not been received according to contractual terms. The Company also considers current and forecast economic conditions, using a variety of economic metrics and forecast indices. The sensitivity of expected credit losses relative to changes to these forecast economic conditions can vary by financial asset class. The Company considers a reasonable and supportable forecast period to be up to 24 months from the balance sheet date. After the forecast period, the Company reverts to historical credit experience. The Company uses collateral arrangements such as letters of credit and amounts held in beneficiary trusts to mitigate credit risk, which are considered in the estimate of net amount expected to be collected. The Company has made a policy election to present accrued interest balances separately from the amortized cost basis of assets and has elected the practical expedient to exclude the accrued interest from the tabular disclosures for mortgage loans and available-for-sale securities. The Company has elected not to estimate an allowance for credit losses on accrued interest receivable. The accrual of interest income is discontinued and the asset is placed on nonaccrual status in the quarter that payment becomes delinquent. Interest accrued but not received for assets on nonaccrual status is reversed through investment income. Interest received for assets that are on nonaccrual status is recognized as payment is received. The asset is returned to accrual status when the principal and interest amounts contractually due are brought current and future payments are expected. Interest receivable is presented as a component of accrued investment income on the Condensed Consolidated Balance Sheet. See Note C and Note K to the Condensed Consolidated Financial Statements for additional information regarding credit losses. Accounting Standards Pending Adoption 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 the Company's results of operations 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, 2021, and the Company will adopt it on January 1, 2022. The guidance requires restatement of prior periods presented. The Company is currently evaluating the method of adoption and the effect the updated guidance will have on its financial statements, including the increased disclosure requirements. The annual updating of cash flow assumptions is expected to increase income statement volatility. While the requirements of the new guidance represent a material change from existing GAAP, the underlying economics of the business and related cash flows will be unchanged. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Earnings (loss) per share is based on weighted average number of outstanding common shares. Basic earnings (loss) per share excludes the impact of dilutive securities and is computed by dividing Net income (loss) 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 months ended March 31, 2020 , approximately 1,015 thousand potential shares attributable to exercises or conversions into common stock under stock-based employee compensation plans were excluded from the calculation of diluted loss per share because the effect would have been antidilutive due to the net loss position of the Company. For the three months ended March 31, 2019 , approximately 971 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 the three months ended March 31, 2019 there were no antidilutive shares. The Company repurchased 435,376 and 317,508 shares of CNAF common stock at an aggregate cost of $18 million and $14 million during the three months ended March 31, 2020 and 2019 . |
Investments
Investments | 3 Months Ended |
Mar. 31, 2020 | |
Investments [Abstract] | |
Investments | Investments The significant components of Net investment income are presented in the following table. Three months ended March 31 (In millions) 2020 2019 Fixed maturity securities $ 438 $ 455 Equity securities (44 ) 30 Limited partnership investments (70 ) 76 Mortgage loans 14 12 Short term investments 7 10 Trading portfolio 1 2 Other — 2 Gross investment income 346 587 Investment expense (17 ) (16 ) Net investment income $ 329 $ 571 During the three months ended March 31, 2020 and 2019 , $(45) million and $17 million of Net investment income was recognized due to the change in fair value of common stock still held as of March 31, 2020 and 2019 . During the three months ended March 31, 2020 and 2019 , $(2) million and less than $1 million of Net investment income was recognized due to the change in fair value of trading securities still held as of March 31, 2020 and 2019 . Net investment gains (losses) are presented in the following table. Three months ended March 31 (In millions) 2020 2019 Net investment gains (losses): Fixed maturity securities: Gross gains $ 29 $ 36 Gross losses (104 ) (42 ) Net investment gains (losses) on fixed maturity securities (75 ) (6 ) Equity securities (133 ) 42 Derivatives 5 (5 ) Mortgage loans (13 ) — Short term investments and other — — Net investment gains (losses) $ (216 ) $ 31 During the three months ended March 31, 2020 and 2019 , $(133) million of losses and $42 million of gains were recognized in Net investment gains (losses) due to the change in fair value of non-redeemable preferred stock still held as of March 31, 2020 and 2019 . For available-for-sale fixed maturity securities, a credit loss exists if the present value of cash flows expected to be collected is less than the amortized cost basis. The allowance for credit loss related to available-for-sale fixed maturity securities is the difference between present value of cash flows expected to be collected and the amortized cost basis, limited by the amount that the fair value is less than the amortized cost basis. The Company considers all available evidence when determining whether an investment requires a credit loss write-down or allowance to be recorded. Examples of such evidence may include the financial condition and near term prospects of the issuer, whether the issuer is current with interest and principal payments, credit ratings on the security or changes in ratings over time, general market conditions and industry, sector or other specific factors and whether it is likely that the Company will recover its amortized cost through the collection of cash flows. Changes in the allowance are presented as a component of Net investment gains (losses) on the Condensed Consolidated Statements of Operations. The following table presents the activity related to the allowance on available-for-sale securities with credit impairments and PCD assets for the three months ended March 31, 2020 . Accrued interest receivable on available-for-sale fixed maturity securities totaled $390 million and is excluded from the estimate of expected credit losses and the amortized cost basis in the tables included within this Note. Three months ended March 31 (in millions) Corporate and other bonds Allowance for credit losses: Beginning balance $ — Additions to the allowance for credit losses: Impact of adopting ASC 326 6 For securities for which credit losses were not previously recorded 48 For available-for-sale securities accounted for as PCD assets 1 Reductions to the allowance for credit losses: Securities sold during the period (realized) 5 Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis 1 Write-offs charged against the allowance — Recoveries of amounts previously written off — Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period — Ending balance as of March 31, 2020 $ 49 The components of available-for-sale impairment losses recognized in earnings by asset type are presented in the following table. The table includes losses on securities with an intention to sell and changes in the allowance for credit losses on securities since acquisition date. Three Months ended March 31 (In millions) 2020 2019 Fixed maturity securities available-for-sale: Corporate and other bonds $ 91 $ 6 Asset-backed 1 8 Impairment losses recognized in earnings $ 92 $ 14 The following tables present a summary of fixed maturity securities. March 31, 2020 Cost or Gross Gross Allowance for Credit Losses (1) Estimated (In millions) Fixed maturity securities available-for-sale: Corporate and other bonds $ 20,181 $ 1,419 $ 817 $ 49 $ 20,734 States, municipalities and political subdivisions 8,957 1,536 2 — 10,491 Asset-backed: Residential mortgage-backed 4,198 207 8 — 4,397 Commercial mortgage-backed 2,207 36 153 — 2,090 Other asset-backed 1,868 9 133 — 1,744 Total asset-backed 8,273 252 294 — 8,231 U.S. Treasury and obligations of government-sponsored enterprises 147 8 — — 155 Foreign government 452 15 4 — 463 Redeemable preferred stock 9 — — — 9 Total fixed maturity securities available-for-sale 38,019 3,230 1,117 49 40,083 Total fixed maturity securities trading 15 — — — 15 Total fixed maturity securities $ 38,034 $ 3,230 $ 1,117 $ 49 $ 40,098 (1) As of January 1, 2020, the Company adopted ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The Unrealized OTTI Losses (Gains) column that tracked subsequent valuation changes on securities for which a credit loss had previously been recorded has been replaced with the Allowance for Credit Losses column . December 31, 2019 Cost or Gross Gross Estimated Unrealized (In millions) Fixed maturity securities available-for-sale: Corporate and other bonds $ 19,789 $ 2,292 $ 32 $ 22,049 $ — States, municipalities and political subdivisions 9,093 1,559 — 10,652 — Asset-backed: Residential mortgage-backed 4,387 133 1 4,519 (17 ) Commercial mortgage-backed 2,265 86 5 2,346 1 Other asset-backed 1,925 41 4 1,962 (3 ) Total asset-backed 8,577 260 10 8,827 (19 ) U.S. Treasury and obligations of government-sponsored enterprises 146 1 2 145 — Foreign government 491 14 1 504 — Redeemable preferred stock 10 — — 10 — Total fixed maturity securities available-for-sale 38,106 4,126 45 42,187 $ (19 ) Total fixed maturity securities trading 20 — — 20 Total fixed maturity securities $ 38,126 $ 4,126 $ 45 $ 42,207 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 March 31, 2020 and December 31, 2019 , the net unrealized gains on investments included in AOCI were correspondingly reduced by Shadow Adjustments of $1,700 million and $2,198 million . The following tables present the estimated fair value and gross unrealized losses of fixed maturity securities in a gross unrealized loss position for which an allowance for credit loss has not been recorded, by the length of time in which the securities have continuously been in that position. Less than 12 Months 12 Months or Longer Total March 31, 2020 Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses (In millions) Fixed maturity securities available-for-sale: Corporate and other bonds $ 7,036 $ 804 $ 44 $ 13 $ 7,080 $ 817 States, municipalities and political subdivisions 82 2 — — 82 2 Asset-backed: Residential mortgage-backed 166 7 22 1 188 8 Commercial mortgage-backed 1,185 151 12 2 1,197 153 Other asset-backed 1,510 131 9 2 1,519 133 Total asset-backed 2,861 289 43 5 2,904 294 U.S. Treasury and obligations of government-sponsored enterprises 2 — — — 2 — Foreign government 76 4 — — 76 4 Redeemable preferred stock 9 — — — 9 — Total $ 10,066 $ 1,099 $ 87 $ 18 $ 10,153 $ 1,117 Less than 12 Months 12 Months or Longer Total December 31, 2019 Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses (In millions) Fixed maturity securities available-for-sale: Corporate and other bonds $ 914 $ 21 $ 186 $ 11 $ 1,100 $ 32 States, municipalities and political subdivisions 34 — — — 34 — Asset-backed: Residential mortgage-backed 249 1 30 — 279 1 Commercial mortgage-backed 381 3 20 2 401 5 Other asset-backed 449 3 33 1 482 4 Total asset-backed 1,079 7 83 3 1,162 10 U.S. Treasury and obligations of government-sponsored enterprises 62 2 2 — 64 2 Foreign government 59 1 1 — 60 1 Total $ 2,148 $ 31 $ 272 $ 14 $ 2,420 $ 45 The following tables present the estimated fair value and gross unrealized losses of available-for-sale Corporate and other bonds in a gross unrealized loss position at March 31, 2020 across industry sectors and by rating distributions. March 31, 2020 Estimated Gross (In millions) Corporate and other bonds: Basic Materials $ 727 $ 78 Communications 349 27 Consumer, cyclical - Other 390 56 Consumer, non-cyclical - Other 401 27 Energy - Oil & Gas 575 191 Energy - Pipelines 523 112 Entertainment 148 23 Financial - Other 1,711 89 Financial - Real Estate/REITS 599 45 Industrial 468 55 Retail 150 18 Technology 290 30 Transportation 73 5 Travel & Related 269 37 Utilities 407 24 Total Corporate and other bonds $ 7,080 $ 817 March 31, 2020 Estimated Gross (In millions) Corporate and other bonds: AAA $ 8 $ — AA 134 4 A 608 17 BBB 4,987 516 Below investment grade 1,343 280 Total Corporate and other bonds $ 7,080 $ 817 The following tables present the estimated fair value and gross unrealized losses of available-for-sale Commercial mortgage-backed securities in a gross unrealized loss position at March 31, 2020 by property type and by rating distributions. March 31, 2020 Estimated Gross (In millions) Commercial mortgage-backed: Conduits (multi property, multi borrower pools) $ 211 $ 11 Single asset, single borrower 986 142 Total Commercial mortgage-backed $ 1,197 $ 153 March 31, 2020 Estimated Gross (In millions) Commercial mortgage-backed: US Government, Government agencies and Government sponsored enterprises $ 1 $ — AAA 60 1 AA 245 17 A 214 22 BBB 484 78 Below investment grade 193 35 Total Commercial mortgage-backed $ 1,197 $ 153 The following tables present the estimated fair value and gross unrealized losses of available-for-sale Other asset-backed securities in a gross unrealized loss position at March 31, 2020 by underlying collateral and by rating distributions. March 31, 2020 Estimated Gross (In millions) Other asset-backed: Auto $ 290 $ 6 Collateralized loan obligations 418 60 Franchise 414 39 Other 397 28 Total Other asset-backed $ 1,519 $ 133 March 31, 2020 Estimated Gross (In millions) Other asset-backed: AAA $ 49 $ 1 AA 83 2 A 821 74 BBB 566 56 Below investment grade — — Total Other asset-backed $ 1,519 $ 133 Based on current facts and circumstances, the Company believes the unrealized losses presented in the March 31, 2020 gross unrealized loss position tables above are not indicative of the ultimate collectibility of the current amortized cost of the securities. Rather, the Company believes the gross unrealized losses are attributable primarily to widening credit spreads over risk free rates beyond historic norms, as a result of market uncertainties stemming from the COVID-19 pandemic, as well as supply shocks in the energy sector coupled with demand shocks in multiple sectors from the COVID-19 pandemic, that originated during the first quarter of 2020 . 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 impairment losses to be recorded as of March 31, 2020 . Contractual Maturity The following table presents available-for-sale fixed maturity securities by contractual maturity. March 31, 2020 December 31, 2019 (In millions) Cost or Amortized Cost Estimated Fair Value Cost or Amortized Cost Estimated Fair Value Due in one year or less $ 1,331 $ 1,325 $ 1,334 $ 1,356 Due after one year through five years 11,554 11,812 9,746 10,186 Due after five years through ten years 13,078 13,069 14,892 15,931 Due after ten years 12,056 13,877 12,134 14,714 Total $ 38,019 $ 40,083 $ 38,106 $ 42,187 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 $196 million and $182 million as of March 31, 2020 and December 31, 2019 and a fair value of $(1) million and $(7) million as of March 31, 2020 and December 31, 2019 . 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 March 31, 2020 , the Company had commitments to purchase or fund approximately $1,025 million and sell approximately $85 million under the terms of these investments. Mortgage Loans The allowance for expected credit losses is developed by assessing the credit quality of pools of mortgage loans in good standing using debt service coverage ratios (DSCR) and loan-to-value ratios (LTV). The DSCR compares a property’s net operating income to its debt service payments, including principal and interest. The LTV ratio compares the current unpaid principal balance of the loan to the estimated fair value of the underlying property collateralizing the loan. The pools developed to measure the credit loss allowance use increments of DSCR and LTV to draw distinctions between risk levels. Changes in the allowance for mortgage loans are presented as a component of Net investment gains (losses) on the Condensed Consolidated Statements of Operations. The Company has adjusted the historical loss rate applied to mortgage loans over the forecast period to reflect higher expected credit losses based on observable economic forecasts, which increased the allowance by $ 13 million for the period ended March 31, 2020 . The following table presents the amortized cost basis of mortgage loans for each credit quality indicator by year of origination as of March 31, 2020 : Mortgage Loans Amortized Cost Basis by Origination Year (1) As of March 31, 2020 2020 2019 2018 2017 2016 Prior Total DSCR ≥1.6x LTV less than 55% $ 60 $ 32 $ 19 $ 92 $ 41 $ 130 $ 374 LTV 55% to 65% — 32 29 55 4 — 120 LTV greater than 65% — 5 — — — — 5 DSCR 1.2x - 1.6x LTV less than 55% — 33 10 13 16 126 198 LTV 55% to 65% — 73 32 32 — — 137 LTV greater than 65% — 85 — — — — 85 DSCR ≤1.2 LTV less than 55% — 1 11 27 — 9 48 LTV 55% to 65% — 14 14 — — — 28 LTV greater than 65% — 22 — — 24 — 46 Total $ 60 $ 297 $ 115 $ 219 $ 85 $ 265 $ 1,041 (1) The values in the table above reflect DSCR on a standardized amortization period and LTV based on the most recent appraised values trended forward using changes in a commercial real estate price index. As of March 31, 2020 , accrued interest receivable on mortgage loans totaled $4 million and is excluded from the amortized cost basis disclosed in the table above and the estimate of expected credit losses. There were no loans that were past due or placed in nonaccrual status as of March 31, 2020 . No interest income was written off for the period ended March 31, 2020 . |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2020 | |
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, and iv) deep dives, where the Company performs an independent analysis of the inputs and assumptions used to price individual securities. 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. March 31, 2020 Total Assets/Liabilities at Fair Value (In millions) Level 1 Level 2 Level 3 Assets Fixed maturity securities: Corporate bonds and other $ 175 $ 20,705 $ 496 $ 21,376 States, municipalities and political subdivisions — 10,491 — 10,491 Asset-backed — 8,034 197 8,231 Total fixed maturity securities 175 39,230 693 40,098 Equity securities: Common stock 187 — 4 191 Non-redeemable preferred stock 59 538 11 608 Total equity securities 246 538 15 799 Short term and other 135 365 — 500 Total assets $ 556 $ 40,133 $ 708 $ 41,397 Liabilities Other liabilities $ — $ 1 $ — $ 1 Total liabilities $ — $ 1 $ — $ 1 December 31, 2019 Total Assets/Liabilities at Fair Value (In millions) Level 1 Level 2 Level 3 Assets Fixed maturity securities: Corporate bonds and other $ 175 $ 22,085 $ 468 $ 22,728 States, municipalities and political subdivisions — 10,652 — 10,652 Asset-backed — 8,662 165 8,827 Total fixed maturity securities 175 41,399 633 42,207 Equity securities: Common stock 135 — 7 142 Non-redeemable preferred stock 54 658 11 723 Total equity securities 189 658 18 865 Short term and other 397 1,344 — 1,741 Total assets $ 761 $ 43,401 $ 651 $ 44,813 Liabilities Other liabilities $ — $ 7 $ — $ 7 Total liabilities $ — $ 7 $ — $ 7 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 January 1, 2020 $ 468 $ — $ 165 $ 18 $ 651 Total realized and unrealized investment gains (losses): Reported in Net investment gains (losses) — — — — — Reported in Net investment income — — — (3 ) (3 ) Reported in Other comprehensive income (loss) (37 ) — (9 ) — (46 ) Total realized and unrealized investment gains (losses) (37 ) — (9 ) (3 ) (49 ) Purchases 67 — 45 — 112 Sales — — — — — Settlements (2 ) — (3 ) — (5 ) Transfers into Level 3 — — — — — Transfers out of Level 3 — — (1 ) — (1 ) Balance as of March 31, 2020 $ 496 $ — $ 197 $ 15 $ 708 Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2020 recognized in Net income (loss) in the period $ — $ — $ — $ (3 ) $ (3 ) Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2020 recognized in Other comprehensive income (loss) in the period (35 ) — (9 ) — (44 ) 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 Net investment income — — — — — Reported in Other comprehensive income (loss) 8 — 3 — 11 Total realized and unrealized investment gains (losses) 8 — 3 2 13 Purchases 56 — 20 — 76 Sales — — — — — Settlements (2 ) — (4 ) — (6 ) Transfers into Level 3 — — 5 — 5 Transfers out of Level 3 (31 ) — (37 ) — (68 ) Balance as of March 31, 2019 $ 253 $ — $ 184 $ 20 $ 457 Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2019 recognized in Net income (loss) in the period $ — $ — $ — $ 2 $ 2 Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2019 recognized in Other comprehensive income (loss) in the period 7 — 3 — 10 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 government securities 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 some 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 some 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 Condensed Consolidated Balance Sheets because certain short term investments, such as time deposits, are not measured at fair value. As of March 31, 2020 and December 31, 2019 , there were $58 million and $60 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 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 primarily 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. March 31, 2020 Estimated Fair Value (In millions) Valuation Technique(s) Unobservable Input(s) Range (Weighted Average) Fixed maturity securities $ 583 Discounted cash flow Credit spread 1% - 10% (4%) December 31, 2019 Estimated Fair Value Valuation Technique(s) Unobservable Input(s) Range (Weighted Average) Fixed maturity securities $ 525 Discounted cash flow Credit spread 1% - 6% (2%) 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. March 31, 2020 Carrying Amount Estimated Fair Value (In millions) Level 1 Level 2 Level 3 Total Assets Mortgage loans $ 1,021 $ — $ — $ 1,036 $ 1,036 Liabilities Long term debt $ 2,680 $ — $ 2,730 $ — $ 2,730 December 31, 2019 Carrying Estimated Fair Value (In millions) Level 1 Level 2 Level 3 Total Assets Mortgage loans $ 994 $ — $ — $ 1,025 $ 1,025 Note receivable 21 — — 21 21 Liabilities Long term debt $ 2,679 $ — $ 2,906 $ — $ 2,906 The following methods and assumptions were used to estimate the fair value of these financial assets and liabilities. The fair value of mortgage loans was 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. During the three months ended March 31, 2020, the note receivable was repaid in full. As of December 31, 2019, the note receivable was 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 | 3 Months Ended |
Mar. 31, 2020 | |
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 $75 million and $58 million for the three months ended March 31, 2020 and 2019 . Net catastrophe losses for the three months ended March 31, 2020 included $13 million related to the COVID-19 pandemic, with the remaining $62 million related primarily to U.S. weather related events. Net catastrophe losses for the three months ended March 31, 2019 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 three months ended March 31 (In millions) 2020 2019 Reserves, beginning of year: Gross $ 21,720 $ 21,984 Ceded 3,835 4,019 Net reserves, beginning of year 17,885 17,965 Net incurred claim and claim adjustment expenses: Provision for insured events of current year 1,355 1,309 Increase (decrease) in provision for insured events of prior years (8 ) 8 Amortization of discount 51 50 Total net incurred (1) 1,398 1,367 Net payments attributable to: Current year events (72 ) (100 ) Prior year events (1,218 ) (1,309 ) Total net payments (1,290 ) (1,409 ) Foreign currency translation adjustment and other (88 ) 13 Net reserves, end of period 17,905 17,936 Ceded reserves, end of period 3,967 3,900 Gross reserves, end of period $ 21,872 $ 21,836 (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 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. Three months ended March 31 (In millions) 2020 2019 Pretax (favorable) unfavorable development: Specialty $ (11 ) $ (20 ) Commercial (4 ) (8 ) International — 14 Corporate & Other — — Total pretax (favorable) unfavorable development $ (15 ) $ (14 ) Specialty The following table presents further detail of the development recorded for the Specialty segment. Three months ended March 31 (In millions) 2020 2019 Pretax (favorable) unfavorable development: Medical Professional Liability $ 10 $ 15 Other Professional Liability and Management Liability 3 (12 ) Surety (30 ) (25 ) Warranty — — Other 6 2 Total pretax (favorable) unfavorable development $ (11 ) $ (20 ) 2020 Unfavorable development in medical professional liability was primarily due to unfavorable outcomes on specific claims in accident years 2015 and 2016 in our aging services business. Favorable development in surety was primarily due to lower than expected frequency for accident years 2017 and prior. 2019 Unfavorable development in medical professional liability was primarily due to higher than expected severity in accident year 2013 in our allied healthcare business. 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. This was partially offset by unfavorable development in management liability in accident year 2014 due to large claim activity. Favorable development in surety was due to lower than expected frequency for accident years 2016 and prior. Commercial The following table presents further detail of the development recorded for the Commercial segment. Three months ended March 31 (In millions) 2020 2019 Pretax (favorable) unfavorable development: Commercial Auto $ 9 $ (5 ) General Liability — (20 ) Workers' Compensation (13 ) 2 Property and Other — 15 Total pretax (favorable) unfavorable development $ (4 ) $ (8 ) 2020 Favorable development in workers’ compensation was due to favorable medical trends driving lower than expected severity in accident years 2016 through 2018. 2019 Favorable development in general liability was primarily due to lower than expected frequency on latent construction defect claims in multiple accident years. Unfavorable development in property and other was primarily due to higher than expected frequency and large loss activity in accident year 2018 in our marine business. International The following table presents further detail of the development recorded for the International segment. Three months ended March 31 (In millions) 2020 2019 Pretax (favorable) unfavorable development: Casualty $ — $ — Property, Energy and Marine (1) — 14 Specialty — — Total pretax (favorable) unfavorable development $ — $ 14 (1) Effective January 1, 2020 the Property and Energy and Marine lines of business have been combined in the International segment. Prior period information has been conformed to the new line of business presentation. 2019 Unfavorable development in property, energy and marine was driven by higher than expected claims in Hardy for 2018 accident year catastrophes. 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 in the Condensed Consolidated Statements of Operations. The impact of the LPT on the Condensed Consolidated Statements of Operations was the recognition of a retroactive reinsurance benefit of $14 million and $22 million for the three months ended March 31, 2020 and 2019 . As of March 31, 2020 and December 31, 2019 , the cumulative amounts ceded under the LPT were $3.2 billion . The unrecognized deferred retroactive reinsurance benefit was $378 million and $392 million as of March 31, 2020 and December 31, 2019 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 $2.7 billion and $3.7 billion as of March 31, 2020 and December 31, 2019 . The decrease in the fair value of the trust was driven by overall declines in equity markets. As of March 31, 2020 , the fair market value of the trust represented more than 150% of the gross LPT reserves. 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 | 3 Months Ended |
Mar. 31, 2020 | |
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 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 March 31, 2020 and December 31, 2019 , the Company had recorded liabilities of approximately $5 million related to guarantee and indemnification agreements. Management does not believe that any future indemnity claims will be significantly greater than the amounts recorded. The Company has provided guarantees, if the primary obligor fails to perform, to holders of structured settlement annuities issued by a previously owned subsidiary. As of March 31, 2020 , 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 | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans The components of net periodic pension cost (benefit) are presented in the following table. Three months ended March 31 (In millions) 2020 2019 Net periodic pension cost (benefit) Interest cost on projected benefit obligation $ 20 $ 25 Expected return on plan assets (39 ) (36 ) Amortization of net actuarial (gain) loss 11 10 Settlement loss 1 — Total net periodic pension cost (benefit) $ (7 ) $ (1 ) For the three months ended March 31, 2020 , the Company recognized $2 million of non-service benefit in Insurance claims and policyholders' benefits and $5 million of non-service benefit in Other operating expenses. For the three months ended March 31, 2019 , the Company recognized less than $1 million of non-service benefit in Insurance claims and policyholders' benefits and $1 million of non-service benefit in Other operating expenses. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) by Component | 3 Months Ended |
Mar. 31, 2020 | |
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 an allowance for credit losses (1) Net unrealized gains (losses) on other investments (1) Pension and postretirement benefits Cumulative foreign currency translation adjustment Total Balance as of January 1, 2020 $ — $ 1,025 $ (833 ) $ (141 ) $ 51 Other comprehensive income (loss) before reclassifications (48 ) (1,066 ) 1 (77 ) (1,190 ) Amounts reclassified from accumulated other comprehensive income (loss) net of tax (expense) benefit of $10, $6, $3, $- and $19 (37 ) (22 ) (10 ) — (69 ) Other comprehensive income (loss) net of tax (expense) benefit of $3, $281, $(3), $- and $281 (11 ) (1,044 ) 11 (77 ) (1,121 ) Balance as of March 31, 2020 $ (11 ) $ (19 ) $ (822 ) $ (218 ) $ (1,070 ) (1) As of January 1, 2020, the Company adopted ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The Net unrealized gains (losses) on investments with OTTI losses column that tracked the change in unrealized gains (losses) on investments with OTTI losses has been replaced with the Net unrealized gains (losses) on investments with an allowance for credit losses column. The balance as of January 1, 2020 in the Net unrealized gains (losses) on investments with OTTI losses column is now reported in the Net unrealized gains (losses) on other investments column. (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 4 521 (1 ) 17 541 Amounts reclassified from accumulated other comprehensive income (loss) net of tax (expense) benefit of $-, $1, $2, $- and $3 — (5 ) (8 ) — (13 ) Other comprehensive income (loss) net of tax (expense) benefit of $(1), $(141), $(2), $- and $(144) 4 526 7 17 554 Balance as of March 31, 2019 $ 20 $ 587 $ (768 ) $ (163 ) $ (324 ) Amounts reclassified from Accumulated other comprehensive income (loss) shown above are reported in Net income (loss) as follows: Component of AOCI Condensed Consolidated Statements of Operations Line Item Affected by Reclassifications Net unrealized gains (losses) on investments with an allowance for credit losses, Net unrealized gains (losses) on investments with OTTI losses and 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 | 3 Months Ended |
Mar. 31, 2020 | |
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, 2019 . 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 net investment gains or losses and any cumulative effects of changes in accounting guidance. 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 reflective of our primary operations. The Company's results of operations and selected balance sheet items by segment are presented in the following tables. Three months ended March 31, 2020 Specialty Commercial International Life & Group Corporate & Other (In millions) Eliminations Total Operating revenues Net earned premiums $ 685 $ 818 $ 239 $ 127 $ — $ — $ 1,869 Net investment income 56 47 15 208 3 — 329 Non-insurance warranty revenue 301 — — — — — 301 Other revenues 1 7 — — 2 (2 ) 8 Total operating revenues 1,043 872 254 335 5 (2 ) 2,507 Claims, benefits and expenses Net incurred claims and benefits 405 558 154 316 (14 ) — 1,419 Policyholders’ dividends 1 5 — — — — 6 Amortization of deferred acquisition costs 151 144 49 — — — 344 Non-insurance warranty expense 281 — — — — — 281 Other insurance related expenses 69 127 36 26 — — 258 Other expenses 13 6 13 3 39 (2 ) 72 Total claims, benefits and expenses 920 840 252 345 25 (2 ) 2,380 Core income (loss) before income tax 123 32 2 (10 ) (20 ) — 127 Income tax (expense) benefit on core income (loss) (27 ) (8 ) — 14 2 — (19 ) Core income (loss) $ 96 $ 24 $ 2 $ 4 $ (18 ) $ — 108 Net investment gains (losses) (216 ) Income tax (expense) benefit on net investment gains (losses) 47 Net investment gains (losses), after tax (169 ) Net income (loss) $ (61 ) March 31, 2020 (In millions) Reinsurance receivables $ 793 $ 883 $ 233 $ 370 $ 2,072 $ — $ 4,351 Insurance receivables 953 1,267 302 8 2 — 2,532 Deferred acquisition costs 316 277 90 — — — 683 Goodwill 117 — 28 — — — 145 Deferred non-insurance warranty acquisition expense 2,905 — — — — — 2,905 Insurance reserves Claim and claim adjustment expenses 5,472 8,704 1,818 3,712 2,166 — 21,872 Unearned premiums 2,363 1,751 495 137 — (1 ) 4,745 Future policy benefits — — — 11,734 — — 11,734 Deferred non-insurance warranty revenue 3,848 — — — — — 3,848 Three months ended March 31, 2019 Specialty Commercial International Life & Group Corporate & Other (In millions) Eliminations Total Operating revenues Net earned premiums $ 661 $ 763 $ 250 $ 130 $ — $ (1 ) $ 1,803 Net investment income 155 190 15 204 7 — 571 Non-insurance warranty revenue 281 — — — — — 281 Other revenues 1 7 — 1 2 (2 ) 9 Total operating revenues 1,098 960 265 335 9 (3 ) 2,664 Claims, benefits and expenses Net incurred claims and benefits 392 510 162 308 (21 ) — 1,351 Policyholders’ dividends 1 5 — — — — 6 Amortization of deferred acquisition costs 147 127 68 — — — 342 Non-insurance warranty expense 260 — — — — — 260 Other insurance related expenses 70 130 25 28 (1 ) (1 ) 251 Other expenses 12 11 4 2 39 (2 ) 66 Total claims, benefits and expenses 882 783 259 338 17 (3 ) 2,276 Core income (loss) before income tax 216 177 6 (3 ) (8 ) — 388 Income tax (expense) benefit on core income (loss) (47 ) (38 ) — 13 2 — (70 ) Core income (loss) $ 169 $ 139 $ 6 $ 10 $ (6 ) $ — 318 Net investment gains (losses) 31 Income tax (expense) benefit on net investment gains (losses) (7 ) Net investment gains (losses), after tax 24 Net income (loss) $ 342 December 31, 2019 (In millions) Reinsurance receivables $ 575 $ 855 $ 247 $ 385 $ 2,142 $ — $ 4,204 Insurance receivables 971 1,210 284 16 — — 2,481 Deferred acquisition costs 311 257 94 — — — 662 Goodwill 117 — 30 — — — 147 Deferred non-insurance warranty acquisition expense 2,840 — — — — — 2,840 Insurance reserves Claim and claim adjustment expenses 5,238 8,656 1,876 3,716 2,234 — 21,720 Unearned premiums 2,337 1,626 495 125 — — 4,583 Future policy benefits — — — 12,311 — — 12,311 Deferred non-insurance warranty revenue 3,779 — — — — — 3,779 The following table presents operating revenue by line of business for each reportable segment. Three months ended March 31 (In millions) 2020 2019 Specialty Management & Professional Liability $ 568 $ 636 Surety 138 139 Warranty & Alternative Risks 337 323 Specialty revenues 1,043 1,098 Commercial Middle Market 335 357 Construction (1) 250 248 Small Business 112 131 Other Commercial 175 224 Commercial revenues 872 960 International Canada 73 66 Europe 92 91 Hardy 89 108 International revenues 254 265 Life & Group revenues 335 335 Corporate & Other revenues 5 9 Eliminations (2 ) (3 ) Total operating revenues 2,507 2,664 Net investment gains (losses) (216 ) 31 Total revenues $ 2,291 $ 2,695 (1) Effective January 1, 2020 , the Construction line of business is presented separately in the Commercial segment to better align with our underwriting expertise and the manner in which the products are sold. Prior period information has been conformed to the new line of business presentation. |
Non-Insurance Revenues from Con
Non-Insurance Revenues from Contracts with Customers | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Non-Insurance Revenues from Contracts with Customers | Non-Insurance Revenues from Contracts with Customers The Company had $3.8 billion reported in Deferred non-insurance warranty revenue as of March 31, 2020 and December 31, 2019 . For the three months ended March 31, 2020 , the Company recognized $286 million of revenues that were included in the deferred revenue balance as of January 1, 2020 . For the three months ended March 31, 2019 , the Company recognized $265 million of revenues that were included in the deferred revenue balance as of January 1, 2019 . For the three months ended March 31, 2020 and 2019 , 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 $831 million of the deferred revenue in the remainder of 2020, $951 million in 2021, $735 million in 2022 and $1.3 billion thereafter. |
Expected Credit Losses - Uncoll
Expected Credit Losses - Uncollectible Reinsurance and Insurance Receivables Expected Credit Losses - Uncollectible Reinsurance and Insurance Receivables | 3 Months Ended |
Mar. 31, 2020 | |
Credit Loss [Abstract] | |
Expected Credit Losses - Uncollectible Reinsurance and Insurance Receivables | Expected Credit Losses - Uncollectible Reinsurance and Insurance Receivables The Company has established an allowance for uncollectible reinsurance receivables which relates to both amounts already billed on ceded paid losses as well as ceded reserves that will be billed when losses are paid in the future. For assessing expected credit losses, the Company separates reinsurance receivables into two pools; voluntary reinsurance receivables and involuntary reinsurance exposures to mandatory pools. The Company has not recorded an allowance for involuntary pools as there is no perceived credit risk. The principal credit quality indicator used in the valuation of the allowance on voluntary reinsurance receivables is the financial strength rating of the reinsurer sourced from major rating agencies. If the reinsurer is unrated, an internal financial strength rating is assigned based on the Company’s historical loss experience and the Company’s assessment of reinsurance counterparty risk profile, which generally corresponds with a B rating. Changes in the allowance are presented as a component of Insurance claims and policyholders' benefits on the Condensed Consolidated Statements of Operations. The following table summarizes the outstanding amount of voluntary reinsurance receivables, gross of any collateral arrangements, by financial strength rating as of March 31, 2020 : (In millions) March 31, 2020 A- to A++ $ 2,662 B- to B++ 859 Insolvent 4 Total voluntary reinsurance outstanding balance (1) $ 3,525 (1) Expected credit losses for legacy A&EP receivables are ceded to NICO and the reinsurance limit on the LPT has not been exhausted, therefore no allowance is recorded for these receivables and they are excluded from the table above. Refer to Note E for information regarding the LPT. The Company has also excluded receivables from involuntary pools. Voluntary reinsurance receivables within the B- to B++ rating distribution are primarily due from captive reinsurers and backed by collateral arrangements. |
General (Policies)
General (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
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 March 31, 2020 . |
Recently Adopted Accounting Standards Updates (ASUs) and Accounting Standards Pending Adoption | Recently Adopted Accounting Standards Updates (ASU) ASU 2016-13: In June 2016 the Financial Accounting Standards Board (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 the Company’s results of operations. For financial assets measured at cost, the expected credit loss model requires immediate recognition of estimated credit losses over the life of the asset and presentation of the asset at the net amount expected to be collected. This new guidance applies to mortgage loan investments, reinsurance and insurance receivables and other financing receivables. For available-for-sale fixed maturity securities carried at fair value, estimated credit losses will continue to be measured at the present value of expected cash flows, however, the other than temporary impairment (OTTI) concept has been eliminated. Under the previous guidance, estimated credit impairments resulted in a write-down of amortized cost. Under the new guidance, estimated credit losses are recognized through an allowance and reversals of the allowance are permitted if the estimate of credit losses declines. For available-for-sale fixed maturity securities where the Company has an intent to sell, impairment will continue to result in a write-down of amortized cost. On January 1, 2020, the Company adopted the updated guidance using a modified retrospective method with a cumulative effect adjustment recorded to beginning Retained earnings. Prior period amounts have not been adjusted and continue to be reported in accordance with the previous accounting guidance. A prospective transition approach is required for available-for-sale fixed maturity securities that were purchased with credit deterioration (PCD assets) or have recognized an OTTI write-down prior to the effective date. The cumulative effect of the accounting change resulted in a $5 million decrease in Retained earnings, with a corresponding $7 million allowance for credit losses recorded for Mortgage loans partially offset by a $2 million tax impact. The allowance for uncollectible insurance and reinsurance receivables was unchanged as a result of adopting the new guidance. At adoption, an allowance for credit losses of $6 million was established for available-for-sale fixed maturity securities that were PCD assets, with a corresponding increase to amortized cost, resulting in no adjustment to the carrying value of the securities. Below is a summary of the significant accounting policies impacted by the adoption of ASU 2016-13. The allowance for credit losses is a valuation account that is reported as a reduction of a financial asset’s cost basis and is measured on a pool basis when similar risk characteristics exist. Management estimates the allowance using relevant available information from both internal and external sources. Historical credit loss experience provides the basis for the estimation of expected credit losses and adjustments may be made to reflect current conditions and reasonable and supportable forecasts. Adjustments to historical loss information are made for any additional factors that come to the Company’s attention. This could include significant shifts in counterparty financial strength ratings, aging of past due receivables, amounts sent to collection agencies, or other underlying portfolio changes. Amounts are considered past due when payments have not been received according to contractual terms. The Company also considers current and forecast economic conditions, using a variety of economic metrics and forecast indices. The sensitivity of expected credit losses relative to changes to these forecast economic conditions can vary by financial asset class. The Company considers a reasonable and supportable forecast period to be up to 24 months from the balance sheet date. After the forecast period, the Company reverts to historical credit experience. The Company uses collateral arrangements such as letters of credit and amounts held in beneficiary trusts to mitigate credit risk, which are considered in the estimate of net amount expected to be collected. The Company has made a policy election to present accrued interest balances separately from the amortized cost basis of assets and has elected the practical expedient to exclude the accrued interest from the tabular disclosures for mortgage loans and available-for-sale securities. The Company has elected not to estimate an allowance for credit losses on accrued interest receivable. The accrual of interest income is discontinued and the asset is placed on nonaccrual status in the quarter that payment becomes delinquent. Interest accrued but not received for assets on nonaccrual status is reversed through investment income. Interest received for assets that are on nonaccrual status is recognized as payment is received. The asset is returned to accrual status when the principal and interest amounts contractually due are brought current and future payments are expected. Interest receivable is presented as a component of accrued investment income on the Condensed Consolidated Balance Sheet. See Note C and Note K to the Condensed Consolidated Financial Statements for additional information regarding credit losses. Accounting Standards Pending Adoption 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 the Company's results of operations 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, 2021, and the Company will adopt it on January 1, 2022. The guidance requires restatement of prior periods presented. The Company is currently evaluating the method of adoption and the effect the updated guidance will have on its financial statements, including the increased disclosure requirements. The annual updating of cash flow assumptions is expected to increase income statement volatility. While the requirements of the new guidance represent a material change from existing GAAP, the underlying economics of the business and related cash flows will be unchanged. |
Earnings per share | Earnings (loss) per share is based on weighted average number of outstanding common shares. Basic earnings (loss) per share excludes the impact of dilutive securities and is computed by dividing Net income (loss) 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. |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments [Abstract] | |
Net investment income | The significant components of Net investment income are presented in the following table. Three months ended March 31 (In millions) 2020 2019 Fixed maturity securities $ 438 $ 455 Equity securities (44 ) 30 Limited partnership investments (70 ) 76 Mortgage loans 14 12 Short term investments 7 10 Trading portfolio 1 2 Other — 2 Gross investment income 346 587 Investment expense (17 ) (16 ) Net investment income $ 329 $ 571 |
Net realized investment gains (losses) | Net investment gains (losses) are presented in the following table. Three months ended March 31 (In millions) 2020 2019 Net investment gains (losses): Fixed maturity securities: Gross gains $ 29 $ 36 Gross losses (104 ) (42 ) Net investment gains (losses) on fixed maturity securities (75 ) (6 ) Equity securities (133 ) 42 Derivatives 5 (5 ) Mortgage loans (13 ) — Short term investments and other — — Net investment gains (losses) $ (216 ) $ 31 |
Debt securities, available-for-sale, allowance for credit loss | Accrued interest receivable on available-for-sale fixed maturity securities totaled $390 million and is excluded from the estimate of expected credit losses and the amortized cost basis in the tables included within this Note. Three months ended March 31 (in millions) Corporate and other bonds Allowance for credit losses: Beginning balance $ — Additions to the allowance for credit losses: Impact of adopting ASC 326 6 For securities for which credit losses were not previously recorded 48 For available-for-sale securities accounted for as PCD assets 1 Reductions to the allowance for credit losses: Securities sold during the period (realized) 5 Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis 1 Write-offs charged against the allowance — Recoveries of amounts previously written off — Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period — Ending balance as of March 31, 2020 $ 49 |
Components of net other than temporary impairment losses recognized in earnings by asset type | The table includes losses on securities with an intention to sell and changes in the allowance for credit losses on securities since acquisition date. Three Months ended March 31 (In millions) 2020 2019 Fixed maturity securities available-for-sale: Corporate and other bonds $ 91 $ 6 Asset-backed 1 8 Impairment losses recognized in earnings $ 92 $ 14 |
Summary of fixed maturity and equity securities | The following tables present a summary of fixed maturity securities. March 31, 2020 Cost or Gross Gross Allowance for Credit Losses (1) Estimated (In millions) Fixed maturity securities available-for-sale: Corporate and other bonds $ 20,181 $ 1,419 $ 817 $ 49 $ 20,734 States, municipalities and political subdivisions 8,957 1,536 2 — 10,491 Asset-backed: Residential mortgage-backed 4,198 207 8 — 4,397 Commercial mortgage-backed 2,207 36 153 — 2,090 Other asset-backed 1,868 9 133 — 1,744 Total asset-backed 8,273 252 294 — 8,231 U.S. Treasury and obligations of government-sponsored enterprises 147 8 — — 155 Foreign government 452 15 4 — 463 Redeemable preferred stock 9 — — — 9 Total fixed maturity securities available-for-sale 38,019 3,230 1,117 49 40,083 Total fixed maturity securities trading 15 — — — 15 Total fixed maturity securities $ 38,034 $ 3,230 $ 1,117 $ 49 $ 40,098 (1) As of January 1, 2020, the Company adopted ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The Unrealized OTTI Losses (Gains) column that tracked subsequent valuation changes on securities for which a credit loss had previously been recorded has been replaced with the Allowance for Credit Losses column . December 31, 2019 Cost or Gross Gross Estimated Unrealized (In millions) Fixed maturity securities available-for-sale: Corporate and other bonds $ 19,789 $ 2,292 $ 32 $ 22,049 $ — States, municipalities and political subdivisions 9,093 1,559 — 10,652 — Asset-backed: Residential mortgage-backed 4,387 133 1 4,519 (17 ) Commercial mortgage-backed 2,265 86 5 2,346 1 Other asset-backed 1,925 41 4 1,962 (3 ) Total asset-backed 8,577 260 10 8,827 (19 ) U.S. Treasury and obligations of government-sponsored enterprises 146 1 2 145 — Foreign government 491 14 1 504 — Redeemable preferred stock 10 — — 10 — Total fixed maturity securities available-for-sale 38,106 4,126 45 42,187 $ (19 ) Total fixed maturity securities trading 20 — — 20 Total fixed maturity securities $ 38,126 $ 4,126 $ 45 $ 42,207 |
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 for which an allowance for credit loss has not been recorded, by the length of time in which the securities have continuously been in that position. Less than 12 Months 12 Months or Longer Total March 31, 2020 Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses (In millions) Fixed maturity securities available-for-sale: Corporate and other bonds $ 7,036 $ 804 $ 44 $ 13 $ 7,080 $ 817 States, municipalities and political subdivisions 82 2 — — 82 2 Asset-backed: Residential mortgage-backed 166 7 22 1 188 8 Commercial mortgage-backed 1,185 151 12 2 1,197 153 Other asset-backed 1,510 131 9 2 1,519 133 Total asset-backed 2,861 289 43 5 2,904 294 U.S. Treasury and obligations of government-sponsored enterprises 2 — — — 2 — Foreign government 76 4 — — 76 4 Redeemable preferred stock 9 — — — 9 — Total $ 10,066 $ 1,099 $ 87 $ 18 $ 10,153 $ 1,117 Less than 12 Months 12 Months or Longer Total December 31, 2019 Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses (In millions) Fixed maturity securities available-for-sale: Corporate and other bonds $ 914 $ 21 $ 186 $ 11 $ 1,100 $ 32 States, municipalities and political subdivisions 34 — — — 34 — Asset-backed: Residential mortgage-backed 249 1 30 — 279 1 Commercial mortgage-backed 381 3 20 2 401 5 Other asset-backed 449 3 33 1 482 4 Total asset-backed 1,079 7 83 3 1,162 10 U.S. Treasury and obligations of government-sponsored enterprises 62 2 2 — 64 2 Foreign government 59 1 1 — 60 1 Total $ 2,148 $ 31 $ 272 $ 14 $ 2,420 $ 45 |
Debt securities, available-for-sale | The following tables present the estimated fair value and gross unrealized losses of available-for-sale Corporate and other bonds in a gross unrealized loss position at March 31, 2020 across industry sectors and by rating distributions. March 31, 2020 Estimated Gross (In millions) Corporate and other bonds: Basic Materials $ 727 $ 78 Communications 349 27 Consumer, cyclical - Other 390 56 Consumer, non-cyclical - Other 401 27 Energy - Oil & Gas 575 191 Energy - Pipelines 523 112 Entertainment 148 23 Financial - Other 1,711 89 Financial - Real Estate/REITS 599 45 Industrial 468 55 Retail 150 18 Technology 290 30 Transportation 73 5 Travel & Related 269 37 Utilities 407 24 Total Corporate and other bonds $ 7,080 $ 817 March 31, 2020 Estimated Gross (In millions) Corporate and other bonds: AAA $ 8 $ — AA 134 4 A 608 17 BBB 4,987 516 Below investment grade 1,343 280 Total Corporate and other bonds $ 7,080 $ 817 The following tables present the estimated fair value and gross unrealized losses of available-for-sale Commercial mortgage-backed securities in a gross unrealized loss position at March 31, 2020 by property type and by rating distributions. March 31, 2020 Estimated Gross (In millions) Commercial mortgage-backed: Conduits (multi property, multi borrower pools) $ 211 $ 11 Single asset, single borrower 986 142 Total Commercial mortgage-backed $ 1,197 $ 153 March 31, 2020 Estimated Gross (In millions) Commercial mortgage-backed: US Government, Government agencies and Government sponsored enterprises $ 1 $ — AAA 60 1 AA 245 17 A 214 22 BBB 484 78 Below investment grade 193 35 Total Commercial mortgage-backed $ 1,197 $ 153 The following tables present the estimated fair value and gross unrealized losses of available-for-sale Other asset-backed securities in a gross unrealized loss position at March 31, 2020 by underlying collateral and by rating distributions. March 31, 2020 Estimated Gross (In millions) Other asset-backed: Auto $ 290 $ 6 Collateralized loan obligations 418 60 Franchise 414 39 Other 397 28 Total Other asset-backed $ 1,519 $ 133 March 31, 2020 Estimated Gross (In millions) Other asset-backed: AAA $ 49 $ 1 AA 83 2 A 821 74 BBB 566 56 Below investment grade — — Total Other asset-backed $ 1,519 $ 133 |
Contractual maturity | The following table presents available-for-sale fixed maturity securities by contractual maturity. March 31, 2020 December 31, 2019 (In millions) Cost or Amortized Cost Estimated Fair Value Cost or Amortized Cost Estimated Fair Value Due in one year or less $ 1,331 $ 1,325 $ 1,334 $ 1,356 Due after one year through five years 11,554 11,812 9,746 10,186 Due after five years through ten years 13,078 13,069 14,892 15,931 Due after ten years 12,056 13,877 12,134 14,714 Total $ 38,019 $ 40,083 $ 38,106 $ 42,187 |
Financing receivable credit quality indicators | The following table presents the amortized cost basis of mortgage loans for each credit quality indicator by year of origination as of March 31, 2020 : Mortgage Loans Amortized Cost Basis by Origination Year (1) As of March 31, 2020 2020 2019 2018 2017 2016 Prior Total DSCR ≥1.6x LTV less than 55% $ 60 $ 32 $ 19 $ 92 $ 41 $ 130 $ 374 LTV 55% to 65% — 32 29 55 4 — 120 LTV greater than 65% — 5 — — — — 5 DSCR 1.2x - 1.6x LTV less than 55% — 33 10 13 16 126 198 LTV 55% to 65% — 73 32 32 — — 137 LTV greater than 65% — 85 — — — — 85 DSCR ≤1.2 LTV less than 55% — 1 11 27 — 9 48 LTV 55% to 65% — 14 14 — — — 28 LTV greater than 65% — 22 — — 24 — 46 Total $ 60 $ 297 $ 115 $ 219 $ 85 $ 265 $ 1,041 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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. March 31, 2020 Total Assets/Liabilities at Fair Value (In millions) Level 1 Level 2 Level 3 Assets Fixed maturity securities: Corporate bonds and other $ 175 $ 20,705 $ 496 $ 21,376 States, municipalities and political subdivisions — 10,491 — 10,491 Asset-backed — 8,034 197 8,231 Total fixed maturity securities 175 39,230 693 40,098 Equity securities: Common stock 187 — 4 191 Non-redeemable preferred stock 59 538 11 608 Total equity securities 246 538 15 799 Short term and other 135 365 — 500 Total assets $ 556 $ 40,133 $ 708 $ 41,397 Liabilities Other liabilities $ — $ 1 $ — $ 1 Total liabilities $ — $ 1 $ — $ 1 December 31, 2019 Total Assets/Liabilities at Fair Value (In millions) Level 1 Level 2 Level 3 Assets Fixed maturity securities: Corporate bonds and other $ 175 $ 22,085 $ 468 $ 22,728 States, municipalities and political subdivisions — 10,652 — 10,652 Asset-backed — 8,662 165 8,827 Total fixed maturity securities 175 41,399 633 42,207 Equity securities: Common stock 135 — 7 142 Non-redeemable preferred stock 54 658 11 723 Total equity securities 189 658 18 865 Short term and other 397 1,344 — 1,741 Total assets $ 761 $ 43,401 $ 651 $ 44,813 Liabilities Other liabilities $ — $ 7 $ — $ 7 Total liabilities $ — $ 7 $ — $ 7 |
Table of reconciliation for assets and liabilities 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 January 1, 2020 $ 468 $ — $ 165 $ 18 $ 651 Total realized and unrealized investment gains (losses): Reported in Net investment gains (losses) — — — — — Reported in Net investment income — — — (3 ) (3 ) Reported in Other comprehensive income (loss) (37 ) — (9 ) — (46 ) Total realized and unrealized investment gains (losses) (37 ) — (9 ) (3 ) (49 ) Purchases 67 — 45 — 112 Sales — — — — — Settlements (2 ) — (3 ) — (5 ) Transfers into Level 3 — — — — — Transfers out of Level 3 — — (1 ) — (1 ) Balance as of March 31, 2020 $ 496 $ — $ 197 $ 15 $ 708 Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2020 recognized in Net income (loss) in the period $ — $ — $ — $ (3 ) $ (3 ) Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2020 recognized in Other comprehensive income (loss) in the period (35 ) — (9 ) — (44 ) 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 Net investment income — — — — — Reported in Other comprehensive income (loss) 8 — 3 — 11 Total realized and unrealized investment gains (losses) 8 — 3 2 13 Purchases 56 — 20 — 76 Sales — — — — — Settlements (2 ) — (4 ) — (6 ) Transfers into Level 3 — — 5 — 5 Transfers out of Level 3 (31 ) — (37 ) — (68 ) Balance as of March 31, 2019 $ 253 $ — $ 184 $ 20 $ 457 Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2019 recognized in Net income (loss) in the period $ — $ — $ — $ 2 $ 2 Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2019 recognized in Other comprehensive income (loss) in the period 7 — 3 — 10 |
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. March 31, 2020 Estimated Fair Value (In millions) Valuation Technique(s) Unobservable Input(s) Range (Weighted Average) Fixed maturity securities $ 583 Discounted cash flow Credit spread 1% - 10% (4%) December 31, 2019 Estimated Fair Value Valuation Technique(s) Unobservable Input(s) Range (Weighted Average) Fixed maturity securities $ 525 Discounted cash flow Credit spread 1% - 6% (2%) |
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. March 31, 2020 Carrying Amount Estimated Fair Value (In millions) Level 1 Level 2 Level 3 Total Assets Mortgage loans $ 1,021 $ — $ — $ 1,036 $ 1,036 Liabilities Long term debt $ 2,680 $ — $ 2,730 $ — $ 2,730 December 31, 2019 Carrying Estimated Fair Value (In millions) Level 1 Level 2 Level 3 Total Assets Mortgage loans $ 994 $ — $ — $ 1,025 $ 1,025 Note receivable 21 — — 21 21 Liabilities Long term debt $ 2,679 $ — $ 2,906 $ — $ 2,906 |
Claim and Claim Adjustment Ex_2
Claim and Claim Adjustment Expense Reserves (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 three months ended March 31 (In millions) 2020 2019 Reserves, beginning of year: Gross $ 21,720 $ 21,984 Ceded 3,835 4,019 Net reserves, beginning of year 17,885 17,965 Net incurred claim and claim adjustment expenses: Provision for insured events of current year 1,355 1,309 Increase (decrease) in provision for insured events of prior years (8 ) 8 Amortization of discount 51 50 Total net incurred (1) 1,398 1,367 Net payments attributable to: Current year events (72 ) (100 ) Prior year events (1,218 ) (1,309 ) Total net payments (1,290 ) (1,409 ) Foreign currency translation adjustment and other (88 ) 13 Net reserves, end of period 17,905 17,936 Ceded reserves, end of period 3,967 3,900 Gross reserves, end of period $ 21,872 $ 21,836 (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 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. Three months ended March 31 (In millions) 2020 2019 Pretax (favorable) unfavorable development: Specialty $ (11 ) $ (20 ) Commercial (4 ) (8 ) International — 14 Corporate & Other — — Total pretax (favorable) unfavorable development $ (15 ) $ (14 ) |
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. Three months ended March 31 (In millions) 2020 2019 Pretax (favorable) unfavorable development: Medical Professional Liability $ 10 $ 15 Other Professional Liability and Management Liability 3 (12 ) Surety (30 ) (25 ) Warranty — — Other 6 2 Total pretax (favorable) unfavorable development $ (11 ) $ (20 ) |
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. Three months ended March 31 (In millions) 2020 2019 Pretax (favorable) unfavorable development: Commercial Auto $ 9 $ (5 ) General Liability — (20 ) Workers' Compensation (13 ) 2 Property and Other — 15 Total pretax (favorable) unfavorable development $ (4 ) $ (8 ) |
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. Three months ended March 31 (In millions) 2020 2019 Pretax (favorable) unfavorable development: Casualty $ — $ — Property, Energy and Marine (1) — 14 Specialty — — Total pretax (favorable) unfavorable development $ — $ 14 (1) Effective January 1, 2020 the Property and Energy and Marine lines of business have been combined in the International segment. Prior period information has been conformed to the new line of business presentation. |
Benefit Plans (Tables)
Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Components of net periodic cost (benefit) | The components of net periodic pension cost (benefit) are presented in the following table. Three months ended March 31 (In millions) 2020 2019 Net periodic pension cost (benefit) Interest cost on projected benefit obligation $ 20 $ 25 Expected return on plan assets (39 ) (36 ) Amortization of net actuarial (gain) loss 11 10 Settlement loss 1 — Total net periodic pension cost (benefit) $ (7 ) $ (1 ) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) by Component (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 an allowance for credit losses (1) Net unrealized gains (losses) on other investments (1) Pension and postretirement benefits Cumulative foreign currency translation adjustment Total Balance as of January 1, 2020 $ — $ 1,025 $ (833 ) $ (141 ) $ 51 Other comprehensive income (loss) before reclassifications (48 ) (1,066 ) 1 (77 ) (1,190 ) Amounts reclassified from accumulated other comprehensive income (loss) net of tax (expense) benefit of $10, $6, $3, $- and $19 (37 ) (22 ) (10 ) — (69 ) Other comprehensive income (loss) net of tax (expense) benefit of $3, $281, $(3), $- and $281 (11 ) (1,044 ) 11 (77 ) (1,121 ) Balance as of March 31, 2020 $ (11 ) $ (19 ) $ (822 ) $ (218 ) $ (1,070 ) (1) As of January 1, 2020, the Company adopted ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The Net unrealized gains (losses) on investments with OTTI losses column that tracked the change in unrealized gains (losses) on investments with OTTI losses has been replaced with the Net unrealized gains (losses) on investments with an allowance for credit losses column. The balance as of January 1, 2020 in the Net unrealized gains (losses) on investments with OTTI losses column is now reported in the Net unrealized gains (losses) on other investments column. (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 4 521 (1 ) 17 541 Amounts reclassified from accumulated other comprehensive income (loss) net of tax (expense) benefit of $-, $1, $2, $- and $3 — (5 ) (8 ) — (13 ) Other comprehensive income (loss) net of tax (expense) benefit of $(1), $(141), $(2), $- and $(144) 4 526 7 17 554 Balance as of March 31, 2019 $ 20 $ 587 $ (768 ) $ (163 ) $ (324 ) |
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 Condensed Consolidated Statements of Operations Line Item Affected by Reclassifications Net unrealized gains (losses) on investments with an allowance for credit losses, Net unrealized gains (losses) on investments with OTTI losses and 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) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 Specialty Commercial International Life & Group Corporate & Other (In millions) Eliminations Total Operating revenues Net earned premiums $ 685 $ 818 $ 239 $ 127 $ — $ — $ 1,869 Net investment income 56 47 15 208 3 — 329 Non-insurance warranty revenue 301 — — — — — 301 Other revenues 1 7 — — 2 (2 ) 8 Total operating revenues 1,043 872 254 335 5 (2 ) 2,507 Claims, benefits and expenses Net incurred claims and benefits 405 558 154 316 (14 ) — 1,419 Policyholders’ dividends 1 5 — — — — 6 Amortization of deferred acquisition costs 151 144 49 — — — 344 Non-insurance warranty expense 281 — — — — — 281 Other insurance related expenses 69 127 36 26 — — 258 Other expenses 13 6 13 3 39 (2 ) 72 Total claims, benefits and expenses 920 840 252 345 25 (2 ) 2,380 Core income (loss) before income tax 123 32 2 (10 ) (20 ) — 127 Income tax (expense) benefit on core income (loss) (27 ) (8 ) — 14 2 — (19 ) Core income (loss) $ 96 $ 24 $ 2 $ 4 $ (18 ) $ — 108 Net investment gains (losses) (216 ) Income tax (expense) benefit on net investment gains (losses) 47 Net investment gains (losses), after tax (169 ) Net income (loss) $ (61 ) March 31, 2020 (In millions) Reinsurance receivables $ 793 $ 883 $ 233 $ 370 $ 2,072 $ — $ 4,351 Insurance receivables 953 1,267 302 8 2 — 2,532 Deferred acquisition costs 316 277 90 — — — 683 Goodwill 117 — 28 — — — 145 Deferred non-insurance warranty acquisition expense 2,905 — — — — — 2,905 Insurance reserves Claim and claim adjustment expenses 5,472 8,704 1,818 3,712 2,166 — 21,872 Unearned premiums 2,363 1,751 495 137 — (1 ) 4,745 Future policy benefits — — — 11,734 — — 11,734 Deferred non-insurance warranty revenue 3,848 — — — — — 3,848 Three months ended March 31, 2019 Specialty Commercial International Life & Group Corporate & Other (In millions) Eliminations Total Operating revenues Net earned premiums $ 661 $ 763 $ 250 $ 130 $ — $ (1 ) $ 1,803 Net investment income 155 190 15 204 7 — 571 Non-insurance warranty revenue 281 — — — — — 281 Other revenues 1 7 — 1 2 (2 ) 9 Total operating revenues 1,098 960 265 335 9 (3 ) 2,664 Claims, benefits and expenses Net incurred claims and benefits 392 510 162 308 (21 ) — 1,351 Policyholders’ dividends 1 5 — — — — 6 Amortization of deferred acquisition costs 147 127 68 — — — 342 Non-insurance warranty expense 260 — — — — — 260 Other insurance related expenses 70 130 25 28 (1 ) (1 ) 251 Other expenses 12 11 4 2 39 (2 ) 66 Total claims, benefits and expenses 882 783 259 338 17 (3 ) 2,276 Core income (loss) before income tax 216 177 6 (3 ) (8 ) — 388 Income tax (expense) benefit on core income (loss) (47 ) (38 ) — 13 2 — (70 ) Core income (loss) $ 169 $ 139 $ 6 $ 10 $ (6 ) $ — 318 Net investment gains (losses) 31 Income tax (expense) benefit on net investment gains (losses) (7 ) Net investment gains (losses), after tax 24 Net income (loss) $ 342 December 31, 2019 (In millions) Reinsurance receivables $ 575 $ 855 $ 247 $ 385 $ 2,142 $ — $ 4,204 Insurance receivables 971 1,210 284 16 — — 2,481 Deferred acquisition costs 311 257 94 — — — 662 Goodwill 117 — 30 — — — 147 Deferred non-insurance warranty acquisition expense 2,840 — — — — — 2,840 Insurance reserves Claim and claim adjustment expenses 5,238 8,656 1,876 3,716 2,234 — 21,720 Unearned premiums 2,337 1,626 495 125 — — 4,583 Future policy benefits — — — 12,311 — — 12,311 Deferred non-insurance warranty revenue 3,779 — — — — — 3,779 |
Revenues by line of business | The following table presents operating revenue by line of business for each reportable segment. Three months ended March 31 (In millions) 2020 2019 Specialty Management & Professional Liability $ 568 $ 636 Surety 138 139 Warranty & Alternative Risks 337 323 Specialty revenues 1,043 1,098 Commercial Middle Market 335 357 Construction (1) 250 248 Small Business 112 131 Other Commercial 175 224 Commercial revenues 872 960 International Canada 73 66 Europe 92 91 Hardy 89 108 International revenues 254 265 Life & Group revenues 335 335 Corporate & Other revenues 5 9 Eliminations (2 ) (3 ) Total operating revenues 2,507 2,664 Net investment gains (losses) (216 ) 31 Total revenues $ 2,291 $ 2,695 (1) Effective January 1, 2020 , the Construction line of business is presented separately in the Commercial segment to better align with our underwriting expertise and the manner in which the products are sold. Prior period information has been conformed to the new line of business presentation. |
Expected Credit Losses - Unco_2
Expected Credit Losses - Uncollectible Reinsurance and Insurance Receivables (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Credit Loss [Abstract] | |
Reinsurance Recoverable, Credit Quality Indicator [Table Text Block] | The following table summarizes the outstanding amount of voluntary reinsurance receivables, gross of any collateral arrangements, by financial strength rating as of March 31, 2020 : (In millions) March 31, 2020 A- to A++ $ 2,662 B- to B++ 859 Insolvent 4 Total voluntary reinsurance outstanding balance (1) $ 3,525 (1) Expected credit losses for legacy A&EP receivables are ceded to NICO and the reinsurance limit on the LPT has not been exhausted, therefore no allowance is recorded for these receivables and they are excluded from the table above. Refer to Note E for information regarding the LPT. The Company has also excluded receivables from involuntary pools. |
General (Narrative) (Details)
General (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 8,634 | $ 9,348 | |
Mortgage loans | 1,021 | 994 | |
Deferred income taxes | $ 518 | $ 199 | |
Accounts receivable, allowance for credit loss | $ 6 | ||
CNAF Consolidated | Loews | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Noncontrolling interest, ownership percentage by parent | 89.00% | ||
Accounting Standards Update 2016-13 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | 5 | ||
Mortgage loans | 7 | ||
Deferred income taxes | $ 2 |
Earnings (Loss) Per Share (Narr
Earnings (Loss) Per Share (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Incremental common shares attributable to dilutive effect of share-based payment arrangements (in shares) | 1,015,000 | 971,000 |
Antidilutive securities excluded from computation of earnings (in shares) | 0 | |
Treasury stock, shares, acquired (in shares) | 435,376 | 317,508 |
Purchase of treasury stock | $ 18 | $ 14 |
Investments (Net investment inc
Investments (Net investment income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net Investment Income [Line Items] | ||
Gross investment income | $ 346 | $ 587 |
Investment expense | (17) | (16) |
Net investment income | 329 | 571 |
Fixed maturity securities | ||
Net Investment Income [Line Items] | ||
Gross investment income | 438 | 455 |
Equity securities | ||
Net Investment Income [Line Items] | ||
Gross investment income | (44) | 30 |
Limited partnership investments | ||
Net Investment Income [Line Items] | ||
Gross investment income | (70) | 76 |
Mortgage loans | ||
Net Investment Income [Line Items] | ||
Gross investment income | 14 | 12 |
Short term investments | ||
Net Investment Income [Line Items] | ||
Gross investment income | 7 | 10 |
Trading portfolio | ||
Net Investment Income [Line Items] | ||
Gross investment income | 1 | 2 |
Other | ||
Net Investment Income [Line Items] | ||
Gross investment income | $ 0 | $ 2 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Gain (Loss) on Securities [Line Items] | |||
Reduction of net unrealized gains on investments included in AOCI due to shadow adjustments | $ 1,700,000,000 | $ 2,198,000,000 | |
Notional value | 196,000,000 | 182,000,000 | |
Derivative liability, fair value, gross liability | (1,000,000) | $ (7,000,000) | |
Commitments to purchase or fund privately placed debt securities | 1,025,000,000 | ||
Commitments to sell various privately placed debt securities | 85,000,000 | ||
Common Stock | |||
Gain (Loss) on Securities [Line Items] | |||
Equity securities, FV-NI, gain (loss) | (45,000,000) | $ 17,000,000 | |
Trading portfolio | |||
Gain (Loss) on Securities [Line Items] | |||
Equity securities, FV-NI, gain (loss) | (2,000,000) | 1,000,000 | |
Preferred stock | |||
Gain (Loss) on Securities [Line Items] | |||
Equity securities, FV-NI, gain (loss) | (133,000,000) | $ 42,000,000 | |
Fixed maturity securities | |||
Gain (Loss) on Securities [Line Items] | |||
Interest Receivable | 390,000,000 | ||
Mortgage loans | |||
Gain (Loss) on Securities [Line Items] | |||
Interest Receivable | 4,000,000 | ||
Debt securities, available-for-sale, allowance for credit loss, period increase (decrease) | 13,000,000 | ||
Financing receivable, allowance for credit loss, writeoff | $ 0 |
Investments (Net realized inves
Investments (Net realized investment gains (losses)) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Fixed maturity securities: | ||
Gross gains | $ 29 | $ 36 |
Gross losses | (104) | (42) |
Net investment gains (losses) on fixed maturity securities | (75) | (6) |
Equity securities | (133) | 42 |
Derivatives | 5 | (5) |
Mortgage loans | (13) | 0 |
Short term investments and other | 0 | 0 |
Net investment gains (losses) | $ (216) | $ 31 |
Investments (Allowance on avaia
Investments (Allowance on avaiable-for-sale securities with credit impairments and assets purchased with credit deterioration) (Details) | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Reductions to the allowance for credit losses: | |
Balance end of period | $ 49,000,000 |
Corporate and other bonds | |
Allowance for credit losses: | |
Balance beginning of period | 0 |
Additions to the allowance for credit losses: | |
Balance beginning of period | 0 |
For securities for which credit losses were not previously recorded | 48,000,000 |
For available-for-sale securities accounted for as PCD assets | 1,000,000 |
Reductions to the allowance for credit losses: | |
Securities sold during the period (realized) | 5,000,000 |
Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis | 1,000,000 |
Write-offs charged against the allowance | 0 |
Recoveries of amounts previously written off | 0 |
Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period | 0 |
Balance end of period | $ 49,000,000 |
Investments (Components of othe
Investments (Components of other-than-temporary impairment losses recognized in earnings) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Debt Securities, Available-for-sale [Line Items] | ||
Total fixed maturity securities available-for-sale | $ 92 | $ 14 |
Corporate and other bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total fixed maturity securities available-for-sale | 91 | 6 |
Asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total fixed maturity securities available-for-sale | $ 1 | $ 8 |
Investments (Summary of fixed m
Investments (Summary of fixed maturity and equity securities) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | $ 38,019 | $ 38,106 |
Gross Unrealized Gains | 3,230 | 4,126 |
Gross Unrealized Losses | 1,117 | 45 |
Estimated Fair Value | 40,083 | 42,187 |
Total fixed maturity securities trading | ||
Debt securities, amortized cost | 38,034 | 38,126 |
Debt securities | 40,098 | 42,207 |
Allowance for Credit Losses | 49 | |
Corporate and other bonds | ||
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | 20,181 | 19,789 |
Gross Unrealized Gains | 1,419 | 2,292 |
Gross Unrealized Losses | 817 | 32 |
Estimated Fair Value | 20,734 | 22,049 |
Unrealized OTTI Losses (Gains) | 0 | |
Total fixed maturity securities trading | ||
Debt securities | 21,376 | 22,728 |
Allowance for Credit Losses | 49 | 0 |
Asset-backed | ||
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | 8,273 | 8,577 |
Gross Unrealized Gains | 252 | 260 |
Gross Unrealized Losses | 294 | 10 |
Estimated Fair Value | 8,231 | 8,827 |
Unrealized OTTI Losses (Gains) | (19) | |
Total fixed maturity securities trading | ||
Debt securities | 8,231 | 8,827 |
Allowance for Credit Losses | 0 | |
States, municipalities and political subdivisions | ||
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | 8,957 | 9,093 |
Gross Unrealized Gains | 1,536 | 1,559 |
Gross Unrealized Losses | 2 | 0 |
Estimated Fair Value | 10,491 | 10,652 |
Unrealized OTTI Losses (Gains) | 0 | |
Total fixed maturity securities trading | ||
Debt securities | 10,491 | 10,652 |
Allowance for Credit Losses | 0 | |
Residential mortgage-backed | ||
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | 4,198 | 4,387 |
Gross Unrealized Gains | 207 | 133 |
Gross Unrealized Losses | 8 | 1 |
Estimated Fair Value | 4,397 | 4,519 |
Unrealized OTTI Losses (Gains) | (17) | |
Total fixed maturity securities trading | ||
Allowance for Credit Losses | 0 | |
Commercial mortgage-backed | ||
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | 2,207 | 2,265 |
Gross Unrealized Gains | 36 | 86 |
Gross Unrealized Losses | 153 | 5 |
Estimated Fair Value | 2,090 | 2,346 |
Unrealized OTTI Losses (Gains) | 1 | |
Total fixed maturity securities trading | ||
Allowance for Credit Losses | 0 | |
Other asset-backed | ||
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | 1,868 | 1,925 |
Gross Unrealized Gains | 9 | 41 |
Gross Unrealized Losses | 133 | 4 |
Estimated Fair Value | 1,744 | 1,962 |
Unrealized OTTI Losses (Gains) | (3) | |
Total fixed maturity securities trading | ||
Allowance for Credit Losses | 0 | |
U.S. Treasury and obligations of government-sponsored enterprises | ||
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | 147 | 146 |
Gross Unrealized Gains | 8 | 1 |
Gross Unrealized Losses | 0 | 2 |
Estimated Fair Value | 155 | 145 |
Unrealized OTTI Losses (Gains) | 0 | |
Total fixed maturity securities trading | ||
Allowance for Credit Losses | 0 | |
Foreign government | ||
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | 452 | 491 |
Gross Unrealized Gains | 15 | 14 |
Gross Unrealized Losses | 4 | 1 |
Estimated Fair Value | 463 | 504 |
Unrealized OTTI Losses (Gains) | 0 | |
Total fixed maturity securities trading | ||
Allowance for Credit Losses | 0 | |
Redeemable preferred stock | ||
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | 9 | 10 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 9 | 10 |
Unrealized OTTI Losses (Gains) | 0 | |
Total fixed maturity securities trading | ||
Allowance for Credit Losses | 0 | |
Fixed maturity securities | ||
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | 38,019 | 38,106 |
Gross Unrealized Gains | 3,230 | 4,126 |
Gross Unrealized Losses | 1,117 | 45 |
Estimated Fair Value | 40,083 | 42,187 |
Unrealized OTTI Losses (Gains) | (19) | |
Total fixed maturity securities trading | ||
Allowance for Credit Losses | 49 | |
Fixed Maturities | ||
Total fixed maturity securities trading | ||
Cost or amortized cost, trading securities | 15 | 20 |
Estimated fair value, trading securities | $ 15 | $ 20 |
Investments (Securities in a gr
Investments (Securities in a gross unrealized loss position) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value, Less than 12 months | $ 10,066 | $ 2,148 |
Gross Unrealized Losses, Less than 12 Months | 1,099 | 31 |
Estimated Fair Value, 12 Months or Longer | 87 | 272 |
Gross Unrealized Losses, 12 Months or Longer | 18 | 14 |
Estimated Fair Value, Total | 10,153 | 2,420 |
Gross Unrealized Losses, Total | 1,117 | 45 |
Corporate and other bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value, Less than 12 months | 7,036 | 914 |
Gross Unrealized Losses, Less than 12 Months | 804 | 21 |
Estimated Fair Value, 12 Months or Longer | 44 | 186 |
Gross Unrealized Losses, 12 Months or Longer | 13 | 11 |
Estimated Fair Value, Total | 7,080 | 1,100 |
Gross Unrealized Losses, Total | 817 | 32 |
States, municipalities and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value, Less than 12 months | 82 | 34 |
Gross Unrealized Losses, Less than 12 Months | 2 | 0 |
Estimated Fair Value, 12 Months or Longer | 0 | 0 |
Gross Unrealized Losses, 12 Months or Longer | 0 | 0 |
Estimated Fair Value, Total | 82 | 34 |
Gross Unrealized Losses, Total | 2 | |
Residential mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value, Less than 12 months | 166 | 249 |
Gross Unrealized Losses, Less than 12 Months | 7 | 1 |
Estimated Fair Value, 12 Months or Longer | 22 | 30 |
Gross Unrealized Losses, 12 Months or Longer | 1 | 0 |
Estimated Fair Value, Total | 188 | 279 |
Gross Unrealized Losses, Total | 8 | 1 |
Commercial mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value, Less than 12 months | 1,185 | 381 |
Gross Unrealized Losses, Less than 12 Months | 151 | 3 |
Estimated Fair Value, 12 Months or Longer | 12 | 20 |
Gross Unrealized Losses, 12 Months or Longer | 2 | 2 |
Estimated Fair Value, Total | 1,197 | 401 |
Gross Unrealized Losses, Total | 153 | 5 |
Other asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value, Less than 12 months | 1,510 | 449 |
Gross Unrealized Losses, Less than 12 Months | 131 | 3 |
Estimated Fair Value, 12 Months or Longer | 9 | 33 |
Gross Unrealized Losses, 12 Months or Longer | 2 | 1 |
Estimated Fair Value, Total | 1,519 | 482 |
Gross Unrealized Losses, Total | 133 | 4 |
Asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value, Less than 12 months | 2,861 | 1,079 |
Gross Unrealized Losses, Less than 12 Months | 289 | 7 |
Estimated Fair Value, 12 Months or Longer | 43 | 83 |
Gross Unrealized Losses, 12 Months or Longer | 5 | 3 |
Estimated Fair Value, Total | 2,904 | 1,162 |
Gross Unrealized Losses, Total | 294 | 10 |
U.S. Treasury and obligations of government-sponsored enterprises | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value, Less than 12 months | 2 | 62 |
Gross Unrealized Losses, Less than 12 Months | 0 | 2 |
Estimated Fair Value, 12 Months or Longer | 0 | 2 |
Gross Unrealized Losses, 12 Months or Longer | 0 | 0 |
Estimated Fair Value, Total | 2 | 64 |
Gross Unrealized Losses, Total | 0 | 2 |
Foreign government | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value, Less than 12 months | 76 | 59 |
Gross Unrealized Losses, Less than 12 Months | 4 | 1 |
Estimated Fair Value, 12 Months or Longer | 0 | 1 |
Gross Unrealized Losses, 12 Months or Longer | 0 | 0 |
Estimated Fair Value, Total | 76 | 60 |
Gross Unrealized Losses, Total | 4 | $ 1 |
Redeemable preferred stock | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value, Less than 12 months | 9 | |
Gross Unrealized Losses, Less than 12 Months | 0 | |
Estimated Fair Value, 12 Months or Longer | 0 | |
Gross Unrealized Losses, 12 Months or Longer | 0 | |
Estimated Fair Value, Total | 9 | |
Gross Unrealized Losses, Total | $ 0 |
Investments (Summary of availab
Investments (Summary of available-for-sale corproate and other bonds in gross unrealized loss position across industry and rating) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | $ 10,153 | $ 2,420 |
Gross Unrealized Losses | 1,117 | 45 |
Corporate and other bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 7,080 | 1,100 |
Gross Unrealized Losses | 817 | $ 32 |
AAA | Corporate and other bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 8 | |
Gross Unrealized Losses | 0 | |
AA | Corporate and other bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 134 | |
Gross Unrealized Losses | 4 | |
A | Corporate and other bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 608 | |
Gross Unrealized Losses | 17 | |
BBB | Corporate and other bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 4,987 | |
Gross Unrealized Losses | 516 | |
Below investment grade | Corporate and other bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 1,343 | |
Gross Unrealized Losses | 280 | |
Basic Materials | Corporate and other bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 727 | |
Gross Unrealized Losses | 78 | |
Communications | Corporate and other bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 349 | |
Gross Unrealized Losses | 27 | |
Consumer, cyclical - Other | Corporate and other bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 390 | |
Gross Unrealized Losses | 56 | |
Consumer, non-cyclical - Other | Corporate and other bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 401 | |
Gross Unrealized Losses | 27 | |
Energy - Oil & Gas | Corporate and other bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 575 | |
Gross Unrealized Losses | 191 | |
Energy - Pipelines | Corporate and other bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 523 | |
Gross Unrealized Losses | 112 | |
Entertainment | Corporate and other bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 148 | |
Gross Unrealized Losses | 23 | |
Financial - Other | Corporate and other bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 1,711 | |
Gross Unrealized Losses | 89 | |
Financial - Real Estate/REITS | Corporate and other bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 599 | |
Gross Unrealized Losses | 45 | |
Industrial | Corporate and other bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 468 | |
Gross Unrealized Losses | 55 | |
Retail | Corporate and other bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 150 | |
Gross Unrealized Losses | 18 | |
Technology | Corporate and other bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 290 | |
Gross Unrealized Losses | 30 | |
Transportation | Corporate and other bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 73 | |
Gross Unrealized Losses | 5 | |
Travel & Related | Corporate and other bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 269 | |
Gross Unrealized Losses | 37 | |
Utilities | Corporate and other bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 407 | |
Gross Unrealized Losses | $ 24 |
Investments (Summary of avail_2
Investments (Summary of available-for-sale commercial mortgage-backed securities in gross unrealized loss position by property type and rating) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | $ 10,153 | $ 2,420 |
Gross Unrealized Losses | 1,117 | 45 |
Commercial mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 1,197 | 401 |
Gross Unrealized Losses | 153 | $ 5 |
Conduits (multi property, multi borrower pools) | Commercial mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 211 | |
Gross Unrealized Losses | 11 | |
Single asset, single borrower | Commercial mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 986 | |
Gross Unrealized Losses | 142 | |
US Government, Government agencies and Government sponsored enterprises | Commercial mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 1 | |
Gross Unrealized Losses | 0 | |
AAA | Commercial mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 60 | |
Gross Unrealized Losses | 1 | |
AA | Commercial mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 245 | |
Gross Unrealized Losses | 17 | |
A | Commercial mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 214 | |
Gross Unrealized Losses | 22 | |
BBB | Commercial mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 484 | |
Gross Unrealized Losses | 78 | |
Below investment grade | Commercial mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 193 | |
Gross Unrealized Losses | $ 35 |
Investments (Summary of avail_3
Investments (Summary of available-for-sale other asset-backed securities in gross unrealized loss position by collateral and rating) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | $ 10,153 | $ 2,420 |
Gross Unrealized Losses | 1,117 | 45 |
Other asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 1,519 | 482 |
Gross Unrealized Losses | 133 | $ 4 |
Auto | Other asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 290 | |
Gross Unrealized Losses | 6 | |
Collateralized loan obligations | Other asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 418 | |
Gross Unrealized Losses | 60 | |
Franchise | Other asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 414 | |
Gross Unrealized Losses | 39 | |
Other | Other asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 397 | |
Gross Unrealized Losses | 28 | |
AAA | Other asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 49 | |
Gross Unrealized Losses | 1 | |
AA | Other asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 83 | |
Gross Unrealized Losses | 2 | |
A | Other asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 821 | |
Gross Unrealized Losses | 74 | |
BBB | Other asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 566 | |
Gross Unrealized Losses | 56 | |
Below investment grade | Other asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 0 | |
Gross Unrealized Losses | $ 0 |
Investments (Contractual maturi
Investments (Contractual maturity) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Investments [Abstract] | ||
Due in one year or less, cost or amortized cost | $ 1,331 | $ 1,334 |
Due after one year through five years, cost or amortized cost | 11,554 | 9,746 |
Due after five years through ten years, cost or amortized cost | 13,078 | 14,892 |
Due after ten years, cost or amortized cost | 12,056 | 12,134 |
Cost or Amortized Cost | 38,019 | 38,106 |
Due in one year or less, estimated fair value | 1,325 | 1,356 |
Due after one year through five years, estimated fair value | 11,812 | 10,186 |
Due after five years through ten years, estimated fair value | 13,069 | 15,931 |
Due after ten years, estimated fair value | 13,877 | 14,714 |
Total Estimated Fair Value | $ 40,083 | $ 42,187 |
Investments (Credit Quality Ind
Investments (Credit Quality Indicator) (Details) - Mortgage loans $ in Millions | Mar. 31, 2020USD ($) |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | $ 60 |
2019 | 297 |
2018 | 115 |
2017 | 219 |
2016 | 85 |
Prior | 265 |
Total | 1,041 |
DSCR ≥1.6x | LTV less than 55% | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 60 |
2019 | 32 |
2018 | 19 |
2017 | 92 |
2016 | 41 |
Prior | 130 |
Total | 374 |
DSCR ≥1.6x | LTV 55% to 65% | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 0 |
2019 | 32 |
2018 | 29 |
2017 | 55 |
2016 | 4 |
Prior | 0 |
Total | 120 |
DSCR ≥1.6x | LTV greater than 65% | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 0 |
2019 | 5 |
2018 | 0 |
2017 | 0 |
2016 | 0 |
Prior | 0 |
Total | 5 |
DSCR 1.2x - 1.6x | LTV less than 55% | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 0 |
2019 | 33 |
2018 | 10 |
2017 | 13 |
2016 | 16 |
Prior | 126 |
Total | 198 |
DSCR 1.2x - 1.6x | LTV 55% to 65% | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 0 |
2019 | 73 |
2018 | 32 |
2017 | 32 |
2016 | 0 |
Prior | 0 |
Total | 137 |
DSCR 1.2x - 1.6x | LTV greater than 65% | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 0 |
2019 | 85 |
2018 | 0 |
2017 | 0 |
2016 | 0 |
Prior | 0 |
Total | 85 |
DSCR ≤1.2 | LTV less than 55% | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 0 |
2019 | 1 |
2018 | 11 |
2017 | 27 |
2016 | 0 |
Prior | 9 |
Total | 48 |
DSCR ≤1.2 | LTV 55% to 65% | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 0 |
2019 | 14 |
2018 | 14 |
2017 | 0 |
2016 | 0 |
Prior | 0 |
Total | 28 |
DSCR ≤1.2 | LTV greater than 65% | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 0 |
2019 | 22 |
2018 | 0 |
2017 | 0 |
2016 | 24 |
Prior | 0 |
Total | $ 46 |
Fair Value (Assets and liabilit
Fair Value (Assets and liabilities measured at fair value on a recurring basis) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Fixed maturity securities: | ||
Fixed maturity securities at fair value (amortized cost of $38,034 and $38,126, less allowance for credit loss of $49 and $-) | $ 40,098 | $ 42,207 |
Equity securities: | ||
Equity securities | 799 | 865 |
Short term and other | 500 | 1,741 |
Total assets | 41,397 | 44,813 |
Other liabilities | 1 | 7 |
Total liabilities | 1 | 7 |
Corporate and other bonds | ||
Fixed maturity securities: | ||
Fixed maturity securities at fair value (amortized cost of $38,034 and $38,126, less allowance for credit loss of $49 and $-) | 21,376 | 22,728 |
States, municipalities and political subdivisions | ||
Fixed maturity securities: | ||
Fixed maturity securities at fair value (amortized cost of $38,034 and $38,126, less allowance for credit loss of $49 and $-) | 10,491 | 10,652 |
Asset-backed | ||
Fixed maturity securities: | ||
Fixed maturity securities at fair value (amortized cost of $38,034 and $38,126, less allowance for credit loss of $49 and $-) | 8,231 | 8,827 |
Common Stock | ||
Equity securities: | ||
Equity securities | 191 | 142 |
Non-redeemable preferred stock | ||
Equity securities: | ||
Equity securities | 608 | 723 |
Level 1 | ||
Fixed maturity securities: | ||
Fixed maturity securities at fair value (amortized cost of $38,034 and $38,126, less allowance for credit loss of $49 and $-) | 175 | 175 |
Equity securities: | ||
Equity securities | 246 | 189 |
Short term and other | 135 | 397 |
Total assets | 556 | 761 |
Other liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Level 1 | Corporate and other bonds | ||
Fixed maturity securities: | ||
Fixed maturity securities at fair value (amortized cost of $38,034 and $38,126, less allowance for credit loss of $49 and $-) | 175 | 175 |
Level 1 | States, municipalities and political subdivisions | ||
Fixed maturity securities: | ||
Fixed maturity securities at fair value (amortized cost of $38,034 and $38,126, less allowance for credit loss of $49 and $-) | 0 | 0 |
Level 1 | Asset-backed | ||
Fixed maturity securities: | ||
Fixed maturity securities at fair value (amortized cost of $38,034 and $38,126, less allowance for credit loss of $49 and $-) | 0 | 0 |
Level 1 | Common Stock | ||
Equity securities: | ||
Equity securities | 187 | 135 |
Level 1 | Non-redeemable preferred stock | ||
Equity securities: | ||
Equity securities | 59 | 54 |
Level 2 | ||
Fixed maturity securities: | ||
Fixed maturity securities at fair value (amortized cost of $38,034 and $38,126, less allowance for credit loss of $49 and $-) | 39,230 | 41,399 |
Equity securities: | ||
Equity securities | 538 | 658 |
Short term and other | 365 | 1,344 |
Total assets | 40,133 | 43,401 |
Other liabilities | 1 | 7 |
Total liabilities | 1 | 7 |
Level 2 | Corporate and other bonds | ||
Fixed maturity securities: | ||
Fixed maturity securities at fair value (amortized cost of $38,034 and $38,126, less allowance for credit loss of $49 and $-) | 20,705 | 22,085 |
Level 2 | States, municipalities and political subdivisions | ||
Fixed maturity securities: | ||
Fixed maturity securities at fair value (amortized cost of $38,034 and $38,126, less allowance for credit loss of $49 and $-) | 10,491 | 10,652 |
Level 2 | Asset-backed | ||
Fixed maturity securities: | ||
Fixed maturity securities at fair value (amortized cost of $38,034 and $38,126, less allowance for credit loss of $49 and $-) | 8,034 | 8,662 |
Level 2 | Common Stock | ||
Equity securities: | ||
Equity securities | 0 | 0 |
Level 2 | Non-redeemable preferred stock | ||
Equity securities: | ||
Equity securities | 538 | 658 |
Level 3 | ||
Fixed maturity securities: | ||
Fixed maturity securities at fair value (amortized cost of $38,034 and $38,126, less allowance for credit loss of $49 and $-) | 693 | 633 |
Equity securities: | ||
Equity securities | 15 | 18 |
Short term and other | 0 | 0 |
Total assets | 708 | 651 |
Other liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Level 3 | Corporate and other bonds | ||
Fixed maturity securities: | ||
Fixed maturity securities at fair value (amortized cost of $38,034 and $38,126, less allowance for credit loss of $49 and $-) | 496 | 468 |
Level 3 | States, municipalities and political subdivisions | ||
Fixed maturity securities: | ||
Fixed maturity securities at fair value (amortized cost of $38,034 and $38,126, less allowance for credit loss of $49 and $-) | 0 | 0 |
Level 3 | Asset-backed | ||
Fixed maturity securities: | ||
Fixed maturity securities at fair value (amortized cost of $38,034 and $38,126, less allowance for credit loss of $49 and $-) | 197 | 165 |
Level 3 | Common Stock | ||
Equity securities: | ||
Equity securities | 4 | 7 |
Level 3 | Non-redeemable preferred stock | ||
Equity securities: | ||
Equity securities | $ 11 | $ 11 |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, Beginning, Assets | $ 651 | $ 437 |
Reported in Other comprehensive income (loss) | (46) | 11 |
Total realized and unrealized investment gains (losses) | (49) | 13 |
Purchases | 112 | 76 |
Sales | 0 | 0 |
Settlements | (5) | (6) |
Transfers into Level 3 | 0 | 5 |
Transfers out of Level 3 | (1) | (68) |
Balance, Ending, Assets | 708 | 457 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2020 recognized in Net income (loss) in the period | (3) | 2 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2020 recognized in Other comprehensive income (loss) in the period | (44) | 10 |
Corporate and other bonds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, Beginning, Assets | 468 | 222 |
Reported in Other comprehensive income (loss) | (37) | 8 |
Total realized and unrealized investment gains (losses) | (37) | 8 |
Purchases | 67 | 56 |
Sales | 0 | 0 |
Settlements | (2) | (2) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | (31) |
Balance, Ending, Assets | 496 | 253 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2020 recognized in Net income (loss) in the period | 0 | 0 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2020 recognized in Other comprehensive income (loss) in the period | (35) | 7 |
States, municipalities and political subdivisions | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, Beginning, Assets | 0 | 0 |
Reported in Other comprehensive income (loss) | 0 | 0 |
Total realized and unrealized investment gains (losses) | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Balance, Ending, Assets | 0 | 0 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2020 recognized in Net income (loss) in the period | 0 | 0 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2020 recognized in Other comprehensive income (loss) in the period | 0 | 0 |
Asset-backed | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, Beginning, Assets | 165 | 197 |
Reported in Other comprehensive income (loss) | (9) | 3 |
Total realized and unrealized investment gains (losses) | (9) | 3 |
Purchases | 45 | 20 |
Sales | 0 | 0 |
Settlements | (3) | (4) |
Transfers into Level 3 | 0 | 5 |
Transfers out of Level 3 | (1) | (37) |
Balance, Ending, Assets | 197 | 184 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2020 recognized in Net income (loss) in the period | 0 | 0 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2020 recognized in Other comprehensive income (loss) in the period | (9) | 3 |
Equity securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, Beginning, Assets | 18 | 18 |
Reported in Other comprehensive income (loss) | 0 | 0 |
Total realized and unrealized investment gains (losses) | (3) | 2 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Balance, Ending, Assets | 15 | 20 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2020 recognized in Net income (loss) in the period | (3) | 2 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2020 recognized in Other comprehensive income (loss) in the period | 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 | 2 |
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 |
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 |
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 |
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 | 2 |
Reported in Net investment income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Reported in Net investment income | (3) | 0 |
Reported in Net investment income | Corporate and other bonds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Reported in Net investment income | 0 | 0 |
Reported in Net investment income | States, municipalities and political subdivisions | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Reported in Net investment income | 0 | 0 |
Reported in Net investment income | Asset-backed | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Reported in Net investment income | 0 | 0 |
Reported in Net investment income | Equity securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Reported in Net investment income | $ (3) | $ 0 |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value Disclosures [Abstract] | ||
Other invested assets overseas deposit | $ 58 | $ 60 |
Fair Value (Quantitative inform
Fair Value (Quantitative information about significant unobservable inputs in the fair value measurement of level 3 assets) (Details) $ in Millions | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Estimated fair value | $ 41,397 | $ 44,813 |
Fixed maturity securities | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Estimated fair value | $ 583 | $ 525 |
Measurement Input, Credit Spread | Income Approach Valuation Technique | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt securities, available-for-sale, measurement Input | 0.01 | 0.01 |
Measurement Input, Credit Spread | Income Approach Valuation Technique | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt securities, available-for-sale, measurement Input | 0.10 | 0.06 |
Measurement Input, Credit Spread | Income Approach Valuation Technique | Weighted Average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt securities, available-for-sale, measurement Input | 0.04 | 0.02 |
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 | Mar. 31, 2020 | Dec. 31, 2019 |
Financial Assets [Abstract] | ||
Mortgage loans | $ 1,021 | $ 994 |
Financial Liabilities [Abstract] | ||
Long term debt | 2,680 | 2,679 |
Carrying Amount | ||
Financial Assets [Abstract] | ||
Mortgage loans | 1,021 | 994 |
Note receivable | 21 | |
Financial Liabilities [Abstract] | ||
Long term debt | 2,680 | 2,679 |
Estimated Fair Value | ||
Financial Assets [Abstract] | ||
Mortgage loans | 1,036 | 1,025 |
Note receivable | 21 | |
Financial Liabilities [Abstract] | ||
Long term debt | 2,730 | 2,906 |
Level 1 | Estimated Fair Value | ||
Financial Assets [Abstract] | ||
Mortgage loans | 0 | 0 |
Note receivable | 0 | |
Financial Liabilities [Abstract] | ||
Long term debt | 0 | 0 |
Level 2 | Estimated Fair Value | ||
Financial Assets [Abstract] | ||
Mortgage loans | 0 | 0 |
Note receivable | 0 | |
Financial Liabilities [Abstract] | ||
Long term debt | 2,730 | 2,906 |
Level 3 | Estimated Fair Value | ||
Financial Assets [Abstract] | ||
Mortgage loans | 1,036 | 1,025 |
Note receivable | 21 | |
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 | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2010 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Retroactive reinsurance benefit recognized | $ 14 | $ 22 | ||
Fair value of collateral trust account represented as percentage of gross loss portfolio transfer reserves | 150.00% | |||
Unusual or Infrequent Item, or Both, Net of Insurance Proceeds | $ 75 | $ 58 | ||
Asbestos and Environmental Reserves | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Liability for Asbestos and environmental claims, net | $ 1,600 | |||
Aggregate limit under AEP Loss Portfolio Transfer | 4,000 | |||
Claim and allocated claim adjustment expense reserves under existing third party reinsurance contracts | 1,200 | |||
Reinsurance premium paid to NICO under AEP Loss Portfolio Transfer | 2,000 | |||
Net reinsurance receivables transferred to NICO under AEP Loss Portfolio Transfer | 215 | |||
Total consideration paid to NICO under AEP Loss Portfolio Transfer | $ 2,200 | |||
Cumulative amounts ceded under AEP Loss Portfolio Transfer | 3,200 | $ 3,200 | ||
Deferred reinsurance benefit yet to be recognized | 378 | 392 | ||
Fair value of collateral trust account established by NICO under AEP Loss Portfolio Transfer | 2,700 | $ 3,700 | ||
COVID-19 | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Unusual or Infrequent Item, or Both, Net of Insurance Proceeds | 13 | |||
Weather Related Events | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Unusual or Infrequent Item, or Both, Net of Insurance Proceeds | $ 62 |
Claim and Claim Adjustment Ex_4
Claim and Claim Adjustment Expense Reserves (Reconciliation of Claim and Claim Adjustment Expense Reserves) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Reserves, beginning of year: [Abstract] | ||
Gross | $ 21,720 | $ 21,984 |
Ceded | 3,835 | 4,019 |
Net reserves, beginning of year | 17,885 | 17,965 |
Net incurred claim and claim adjustment expenses: | ||
Provision for insured events of current year | 1,355 | 1,309 |
Increase (decrease) in provision for insured events of prior years | (8) | 8 |
Amortization of discount | 51 | 50 |
Total net incurred | 1,398 | 1,367 |
Net payments attributable to: | ||
Current year events | (72) | (100) |
Prior year events | (1,218) | (1,309) |
Total net payments | (1,290) | (1,409) |
Foreign currency translation adjustment and other | (88) | 13 |
Net reserves, end of period | 17,905 | 17,936 |
Ceded reserves, end of period | 3,967 | 3,900 |
Gross reserves, end of period | $ 21,872 | $ 21,836 |
Claim and Claim Adjustment Ex_5
Claim and Claim Adjustment Expense Reserves (Net Prior Year Development) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Pretax (favorable) unfavorable premium development, excluding Life & Group | $ (15) | $ (14) |
Specialty | ||
Segment Reporting Information [Line Items] | ||
Pretax (favorable) unfavorable premium development, excluding Life & Group | (11) | (20) |
Commercial | ||
Segment Reporting Information [Line Items] | ||
Pretax (favorable) unfavorable premium development, excluding Life & Group | (4) | (8) |
International | ||
Segment Reporting Information [Line Items] | ||
Pretax (favorable) unfavorable premium development, excluding Life & Group | 0 | 14 |
Corporate & Other | ||
Segment Reporting Information [Line Items] | ||
Pretax (favorable) unfavorable premium development, excluding Life & Group | $ 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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Medical Professional Liability | $ 10 | $ 15 |
Other Professional Liability and Management Liability | 3 | (12) |
Surety | (30) | (25) |
Warranty | 0 | 0 |
Other | 6 | 2 |
Total pretax (favorable) unfavorable development | $ (11) | $ (20) |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Commercial Auto | $ 9 | $ (5) |
General Liability | 0 | (20) |
Workers' Compensation | (13) | 2 |
Property and Other | 0 | 15 |
Total pretax (favorable) unfavorable development | $ (4) | $ (8) |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Casualty | $ 0 | $ 0 |
Property, Energy and Marine | 0 | 14 |
Specialty | 0 | 0 |
Total pretax (favorable) unfavorable development | $ 0 | $ 14 |
Legal Proceedings, Contingenc_2
Legal Proceedings, Contingencies and Guarantees (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
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 (Components of ne
Benefit Plans (Components of net periodic cost (benefit)) (Details) - Pension Benefits - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost on projected benefit obligation | $ 20 | $ 25 |
Expected return on plan assets | (39) | (36) |
Amortization of net actuarial (gain) loss | 11 | 10 |
Settlement loss | 1 | 0 |
Total net periodic pension cost (benefit) | $ (7) | $ (1) |
Benefit Plans (Narrative) (Deta
Benefit Plans (Narrative) (Details) - Pension Benefits - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Insurance Claims and Policyholder's Benefits, Including Policyholder's Dividends | ||
Total non-service cost (benefit) | $ 2 | $ 1 |
Other Expense | ||
Total non-service cost (benefit) | $ 5 | $ 1 |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Total stockholder's equity at beginning of period | $ 12,215 | |
Other comprehensive income (loss) before reclassifications | (1,190) | $ 541 |
Amounts reclassified from accumulated other comprehensive income (loss) net of tax | (69) | (13) |
Other comprehensive income (loss) after tax (expense) benefit | (1,121) | 554 |
Total stockholder's equity at end of period | 10,362 | 11,455 |
Reclassification from AOCI, tax | 19 | 3 |
Tax (expense) benefit on other comprehensive income (loss) | 281 | (144) |
Accumulated other comprehensive income (loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Total stockholder's equity at beginning of period | 51 | (878) |
Total stockholder's equity at end of period | (1,070) | (324) |
Net unrealized gains (losses) on investments with an allowance for credit losses(1) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Total stockholder's equity at beginning of period | 0 | 16 |
Other comprehensive income (loss) before reclassifications | (48) | 4 |
Amounts reclassified from accumulated other comprehensive income (loss) net of tax | (37) | 0 |
Other comprehensive income (loss) after tax (expense) benefit | (11) | 4 |
Total stockholder's equity at end of period | (11) | 20 |
Reclassification from AOCI, tax | 10 | 0 |
Tax (expense) benefit on other comprehensive income (loss) | 3 | (1) |
Net unrealized gains (losses) on other investments(1) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Total stockholder's equity at beginning of period | 1,025 | 61 |
Other comprehensive income (loss) before reclassifications | (1,066) | 521 |
Amounts reclassified from accumulated other comprehensive income (loss) net of tax | (22) | (5) |
Other comprehensive income (loss) after tax (expense) benefit | (1,044) | 526 |
Total stockholder's equity at end of period | (19) | 587 |
Reclassification from AOCI, tax | 6 | 1 |
Tax (expense) benefit on other comprehensive income (loss) | 281 | (141) |
Pension and postretirement benefits | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Total stockholder's equity at beginning of period | (833) | (775) |
Other comprehensive income (loss) before reclassifications | 1 | (1) |
Amounts reclassified from accumulated other comprehensive income (loss) net of tax | (10) | (8) |
Other comprehensive income (loss) after tax (expense) benefit | 11 | 7 |
Total stockholder's equity at end of period | (822) | (768) |
Reclassification from AOCI, tax | 3 | 2 |
Tax (expense) benefit on other comprehensive income (loss) | (3) | (2) |
Cumulative foreign currency translation adjustment | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Total stockholder's equity at beginning of period | (141) | (180) |
Other comprehensive income (loss) before reclassifications | (77) | 17 |
Amounts reclassified from accumulated other comprehensive income (loss) net of tax | 0 | 0 |
Other comprehensive income (loss) after tax (expense) benefit | (77) | 17 |
Total stockholder's equity at end of period | (218) | (163) |
Reclassification from AOCI, tax | 0 | 0 |
Tax (expense) benefit on other comprehensive income (loss) | $ 0 | $ 0 |
Business Segments (Narrative) (
Business Segments (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2020segment | |
Core Segments - Specialty, Commercial and International | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 3 |
Non-Core Segments - Life & Group and Corporate & Other | |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating revenues | ||
Net earned premiums | $ 1,869 | $ 1,803 |
Net investment income | 329 | 571 |
Non-insurance warranty revenue | 301 | 281 |
Other revenues | 8 | 9 |
Total operating revenues | 2,507 | 2,664 |
Claims, Benefits and Expenses | ||
Net incurred claims and benefits | 1,419 | 1,351 |
Policyholders’ dividends | 6 | 6 |
Amortization of deferred acquisition costs | 344 | 342 |
Non-insurance warranty expense | 281 | 260 |
Other insurance related expenses | 258 | 251 |
Other expenses | 72 | 66 |
Total claims, benefits and expenses | 2,380 | 2,276 |
Core income (loss) before income tax | 127 | 388 |
Income tax (expense) benefit on core income (loss) | (19) | (70) |
Core income (loss) | 108 | 318 |
Net investment gains (losses) | (216) | 31 |
Income tax (expense) benefit on net investment gains (losses) | 47 | (7) |
Net investment gains (losses), after tax | (169) | 24 |
Net income (loss) | (61) | 342 |
Operating Segments | Specialty | ||
Operating revenues | ||
Net earned premiums | 685 | 661 |
Net investment income | 56 | 155 |
Non-insurance warranty revenue | 301 | 281 |
Other revenues | 1 | 1 |
Total operating revenues | 1,043 | 1,098 |
Claims, Benefits and Expenses | ||
Net incurred claims and benefits | 405 | 392 |
Policyholders’ dividends | 1 | 1 |
Amortization of deferred acquisition costs | 151 | 147 |
Non-insurance warranty expense | 281 | 260 |
Other insurance related expenses | 69 | 70 |
Other expenses | 13 | 12 |
Total claims, benefits and expenses | 920 | 882 |
Core income (loss) before income tax | 123 | 216 |
Income tax (expense) benefit on core income (loss) | (27) | (47) |
Core income (loss) | 96 | 169 |
Operating Segments | Commercial | ||
Operating revenues | ||
Net earned premiums | 818 | 763 |
Net investment income | 47 | 190 |
Non-insurance warranty revenue | 0 | 0 |
Other revenues | 7 | 7 |
Total operating revenues | 872 | 960 |
Claims, Benefits and Expenses | ||
Net incurred claims and benefits | 558 | 510 |
Policyholders’ dividends | 5 | 5 |
Amortization of deferred acquisition costs | 144 | 127 |
Non-insurance warranty expense | 0 | 0 |
Other insurance related expenses | 127 | 130 |
Other expenses | 6 | 11 |
Total claims, benefits and expenses | 840 | 783 |
Core income (loss) before income tax | 32 | 177 |
Income tax (expense) benefit on core income (loss) | (8) | (38) |
Core income (loss) | 24 | 139 |
Operating Segments | International | ||
Operating revenues | ||
Net earned premiums | 239 | 250 |
Net investment income | 15 | 15 |
Non-insurance warranty revenue | 0 | 0 |
Other revenues | 0 | 0 |
Total operating revenues | 254 | 265 |
Claims, Benefits and Expenses | ||
Net incurred claims and benefits | 154 | 162 |
Policyholders’ dividends | 0 | 0 |
Amortization of deferred acquisition costs | 49 | 68 |
Non-insurance warranty expense | 0 | 0 |
Other insurance related expenses | 36 | 25 |
Other expenses | 13 | 4 |
Total claims, benefits and expenses | 252 | 259 |
Core income (loss) before income tax | 2 | 6 |
Income tax (expense) benefit on core income (loss) | 0 | 0 |
Core income (loss) | 2 | 6 |
Operating Segments | Life & Group | ||
Operating revenues | ||
Net earned premiums | 127 | 130 |
Net investment income | 208 | 204 |
Non-insurance warranty revenue | 0 | 0 |
Other revenues | 0 | 1 |
Total operating revenues | 335 | 335 |
Claims, Benefits and Expenses | ||
Net incurred claims and benefits | 316 | 308 |
Policyholders’ dividends | 0 | 0 |
Amortization of deferred acquisition costs | 0 | 0 |
Non-insurance warranty expense | 0 | 0 |
Other insurance related expenses | 26 | 28 |
Other expenses | 3 | 2 |
Total claims, benefits and expenses | 345 | 338 |
Core income (loss) before income tax | (10) | (3) |
Income tax (expense) benefit on core income (loss) | 14 | 13 |
Core income (loss) | 4 | 10 |
Operating Segments | Corporate & Other | ||
Operating revenues | ||
Net earned premiums | 0 | 0 |
Net investment income | 3 | 7 |
Non-insurance warranty revenue | 0 | 0 |
Other revenues | 2 | 2 |
Total operating revenues | 5 | 9 |
Claims, Benefits and Expenses | ||
Net incurred claims and benefits | (14) | (21) |
Policyholders’ dividends | 0 | 0 |
Amortization of deferred acquisition costs | 0 | 0 |
Non-insurance warranty expense | 0 | 0 |
Other insurance related expenses | 0 | (1) |
Other expenses | 39 | 39 |
Total claims, benefits and expenses | 25 | 17 |
Core income (loss) before income tax | (20) | (8) |
Income tax (expense) benefit on core income (loss) | 2 | 2 |
Core income (loss) | (18) | (6) |
Eliminations | ||
Operating revenues | ||
Net earned premiums | 0 | (1) |
Net investment income | 0 | 0 |
Non-insurance warranty revenue | 0 | 0 |
Other revenues | (2) | (2) |
Total operating revenues | (2) | (3) |
Claims, Benefits and Expenses | ||
Net incurred claims and benefits | 0 | 0 |
Policyholders’ dividends | 0 | 0 |
Amortization of deferred acquisition costs | 0 | 0 |
Non-insurance warranty expense | 0 | 0 |
Other insurance related expenses | 0 | (1) |
Other expenses | (2) | (2) |
Total claims, benefits and expenses | (2) | (3) |
Core income (loss) before income tax | 0 | 0 |
Income tax (expense) benefit on core income (loss) | 0 | 0 |
Core income (loss) | $ 0 | $ 0 |
Business Segments (Balance Shee
Business Segments (Balance Sheet Information) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Reinsurance receivables | $ 4,351 | $ 4,204 |
Insurance receivables | 2,532 | 2,481 |
Deferred acquisition costs | 683 | 662 |
Goodwill | 145 | 147 |
Deferred non-insurance warranty acquisition expense | 2,905 | 2,840 |
Insurance reserves | ||
Claim and claim adjustment expenses | 21,872 | 21,720 |
Unearned premiums | 4,745 | 4,583 |
Future policy benefits | 11,734 | 12,311 |
Deferred non-insurance warranty revenue | 3,848 | 3,779 |
Operating Segments | Specialty | ||
Segment Reporting Information [Line Items] | ||
Reinsurance receivables | 793 | 575 |
Insurance receivables | 953 | 971 |
Deferred acquisition costs | 316 | 311 |
Goodwill | 117 | 117 |
Deferred non-insurance warranty acquisition expense | 2,905 | 2,840 |
Insurance reserves | ||
Claim and claim adjustment expenses | 5,472 | 5,238 |
Unearned premiums | 2,363 | 2,337 |
Future policy benefits | 0 | 0 |
Deferred non-insurance warranty revenue | 3,848 | 3,779 |
Operating Segments | Commercial | ||
Segment Reporting Information [Line Items] | ||
Reinsurance receivables | 883 | 855 |
Insurance receivables | 1,267 | 1,210 |
Deferred acquisition costs | 277 | 257 |
Goodwill | 0 | 0 |
Deferred non-insurance warranty acquisition expense | 0 | 0 |
Insurance reserves | ||
Claim and claim adjustment expenses | 8,704 | 8,656 |
Unearned premiums | 1,751 | 1,626 |
Future policy benefits | 0 | 0 |
Deferred non-insurance warranty revenue | 0 | 0 |
Operating Segments | International | ||
Segment Reporting Information [Line Items] | ||
Reinsurance receivables | 233 | 247 |
Insurance receivables | 302 | 284 |
Deferred acquisition costs | 90 | 94 |
Goodwill | 28 | 30 |
Deferred non-insurance warranty acquisition expense | 0 | 0 |
Insurance reserves | ||
Claim and claim adjustment expenses | 1,818 | 1,876 |
Unearned premiums | 495 | 495 |
Future policy benefits | 0 | 0 |
Deferred non-insurance warranty revenue | 0 | 0 |
Operating Segments | Life & Group | ||
Segment Reporting Information [Line Items] | ||
Reinsurance receivables | 370 | 385 |
Insurance receivables | 8 | 16 |
Deferred acquisition costs | 0 | 0 |
Goodwill | 0 | 0 |
Deferred non-insurance warranty acquisition expense | 0 | 0 |
Insurance reserves | ||
Claim and claim adjustment expenses | 3,712 | 3,716 |
Unearned premiums | 137 | 125 |
Future policy benefits | 11,734 | 12,311 |
Deferred non-insurance warranty revenue | 0 | 0 |
Operating Segments | Corporate & Other | ||
Segment Reporting Information [Line Items] | ||
Reinsurance receivables | 2,072 | 2,142 |
Insurance receivables | 2 | 0 |
Deferred acquisition costs | 0 | 0 |
Goodwill | 0 | 0 |
Deferred non-insurance warranty acquisition expense | 0 | 0 |
Insurance reserves | ||
Claim and claim adjustment expenses | 2,166 | 2,234 |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Total revenues | $ 2,291 | $ 2,695 |
Total operating revenues | 2,507 | 2,664 |
Net investment gains (losses) | (216) | 31 |
Operating Segments | Specialty | ||
Total revenues | 1,043 | 1,098 |
Operating Segments | Commercial | ||
Total revenues | 872 | 960 |
Operating Segments | International | ||
Total revenues | 254 | 265 |
Operating Segments | Life & Group | ||
Total revenues | 335 | 335 |
Operating Segments | Corporate & Other | ||
Total revenues | 5 | 9 |
Eliminations | ||
Total revenues | (2) | (3) |
Management & Professional Liability | Operating Segments | Specialty | ||
Total revenues | 568 | 636 |
Surety | Operating Segments | Specialty | ||
Total revenues | 138 | 139 |
Warranty & Alternative Risks | Operating Segments | Specialty | ||
Total revenues | 337 | 323 |
Middle Market | Operating Segments | Commercial | ||
Total revenues | 335 | 357 |
Construction | Operating Segments | Commercial | ||
Total revenues | 250 | 248 |
Small Business | Operating Segments | Commercial | ||
Total revenues | 112 | 131 |
Other Commercial | Operating Segments | Commercial | ||
Total revenues | 175 | 224 |
Canada | Operating Segments | International | ||
Total revenues | 73 | 66 |
Europe | Operating Segments | International | ||
Total revenues | 92 | 91 |
Hardy | Operating Segments | International | ||
Total revenues | $ 89 | $ 108 |
Non-Insurance Revenues from C_2
Non-Insurance Revenues from Contracts with Customers (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |||
Deferred non-insurance warranty revenue | $ 3,848 | $ 3,779 | |
Contract with customer, liability, revenue recognized | $ 286 | $ 265 |
Non-Insurance Revenues from C_3
Non-Insurance Revenues from Contracts with Customers (Performance Obligation) (Details) $ in Millions | Mar. 31, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Remaining performance obligation, amount | $ 831 |
Remaining performance obligation, expected timing of satisfaction, period | 9 months |
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 | $ 951 |
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 | $ 735 |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Remaining performance obligation, amount | $ 1,300 |
Remaining performance obligation, expected timing of satisfaction, period |
Expected Credit Losses - Unco_3
Expected Credit Losses - Uncollectible Reinsurance and Insurance Receivables (Summary of Outstanding Amount of Voluntary Reinsuranece Receivables) (Details) $ in Millions | Mar. 31, 2020USD ($) |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Reinsurance receivables | $ 3,525 |
A- to A | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Reinsurance receivables | 2,662 |
B- to B | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Reinsurance receivables | 859 |
Insolvent | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Reinsurance receivables | $ 4 |
Uncategorized Items - cna2020q1
Label | Element | Value |
Retained Earnings [Member] | ||
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | $ 9,343,000,000 |
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | 9,277,000,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (5,000,000) |
Cumulative Effect, Period Of Adoption, Adjustment [Member] | Corporate Debt Securities [Member] | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss | us-gaap_DebtSecuritiesAvailableForSaleAllowanceForCreditLoss | $ 6,000,000 |