Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 05, 2021 | Jun. 30, 2020 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding (in shares) | 271,391,603 | ||
Entity Public Float | $ 889 | ||
Documents Incorporated by Reference | Portions of the CNA Financial Corporation Proxy Statement prepared for the 2021 annual meeting of shareholders, pursuant to Regulation 14A, are incorporated by reference into Part III of this report. | ||
Entity Central Index Key | 0000021175 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
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 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues | |||
Net earned premiums | $ 7,649 | $ 7,428 | $ 7,312 |
Net investment income | 1,935 | 2,118 | 1,817 |
Net investment (losses) gains | (54) | 29 | (52) |
Non-insurance warranty revenue | 1,252 | 1,161 | 1,007 |
Other revenues | 26 | 31 | 50 |
Total revenues | 10,808 | 10,767 | 10,134 |
Claims, Benefits and Expenses | |||
Insurance claims and policyholders’ benefits | 6,170 | 5,806 | 5,572 |
Amortization of deferred acquisition costs | 1,410 | 1,383 | 1,335 |
Non-insurance warranty expense | 1,159 | 1,082 | 923 |
Other operating expenses | 1,126 | 1,142 | 1,202 |
Interest | 122 | 131 | 138 |
Total claims, benefits and expenses | 9,987 | 9,544 | 9,170 |
Income before income tax | 821 | 1,223 | 964 |
Income tax expense | (131) | (223) | (151) |
Net income | $ 690 | $ 1,000 | $ 813 |
Basic earnings per share | |||
Basic earnings per share (in usd per share) | $ 2.54 | $ 3.68 | $ 2.99 |
Diluted earnings per share | |||
Diluted earnings per share (in usd per share) | $ 2.53 | $ 3.67 | $ 2.98 |
Weighted Average Outstanding Common Stock and Common Stock Equivalents | |||
Basic (in shares) | 271.6 | 271.6 | 271.5 |
Diluted (in shares) | 272.4 | 272.5 | 272.5 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net income | $ 690 | $ 1,000 | $ 813 |
Other Comprehensive Income (Loss), net of tax | |||
Net unrealized gains and losses on investments | 720 | 948 | (812) |
Foreign currency translation adjustment | 47 | 39 | (82) |
Pension and postretirement benefits | (15) | (58) | 0 |
Other comprehensive income (loss), net of tax | 752 | 929 | (894) |
Total comprehensive income (loss) | 1,442 | 1,929 | (81) |
Investments | |||
Other Comprehensive Income (Loss), net of tax | |||
Net unrealized gains and losses on investments | 0 | 0 | 0 |
Net unrealized gains and losses on other investments | |||
Other Comprehensive Income (Loss), net of tax | |||
Net unrealized gains and losses on investments | $ 720 | $ 948 | $ (812) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Investments: | ||
Fixed maturity securities at fair value (amortized cost of $38,953 and $38,126, less allowance for credit loss of $40 and $—) | $ 44,631 | $ 42,207 |
Equity securities at fair value (cost of $941 and $820) | 992 | 865 |
Limited partnership investments | 1,619 | 1,752 |
Other invested assets | 76 | 65 |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 1,068 | 994 |
Short term investments | 1,907 | 1,861 |
Total investments | 50,293 | 47,744 |
Cash | 419 | 242 |
Reinsurance receivables (less allowance for uncollectible receivables of $21 and $25) | 4,457 | 4,179 |
Insurance receivables (less allowance for uncollectible receivables of $33 and $32) | 2,607 | 2,449 |
Accrued investment income | 380 | 395 |
Deferred acquisition costs | 708 | 662 |
Deferred income taxes | 66 | 199 |
Property and equipment at cost (less accumulated depreciation of $231 and $215) | 252 | 282 |
Goodwill | 148 | 147 |
Deferred non-insurance warranty acquisition expense | 3,068 | 2,840 |
Other assets (includes $— and $21 due from Loews Corporation) | 1,628 | 1,473 |
Total assets | 64,026 | 60,612 |
Insurance reserves: | ||
Claim and claim adjustment expenses | 22,706 | 21,720 |
Unearned premiums | 5,119 | 4,583 |
Future policy benefits | 13,318 | 12,311 |
Long term debt | 2,776 | 2,679 |
Deferred non-insurance warranty revenue | 4,023 | 3,779 |
Other liabilities (includes $89 and $21 due to Loews Corporation) | 3,377 | 3,325 |
Total liabilities | 51,319 | 48,397 |
Commitments and contingencies (Notes B and F) | ||
Stockholders' Equity | ||
Common stock ($2.50 par value; 500,000,000 shares authorized; 273,040,243 shares issued; 271,391,603 and 271,412,591 shares outstanding) | 683 | 683 |
Additional paid-in capital | 2,211 | 2,203 |
Retained earnings | 9,081 | 9,348 |
Accumulated other comprehensive income | 803 | 51 |
Treasury stock (1,648,640 and 1,627,652 shares), at cost | (71) | (70) |
Total stockholders’ equity | 12,707 | 12,215 |
Total liabilities and stockholders' equity | $ 64,026 | $ 60,612 |
Consolidated Balance Sheets - (
Consolidated Balance Sheets - (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Fixed maturities securities at amortized cost | $ 38,953 | $ 38,126 |
Marketable securities fixed maturities allowance for credit loss | 40 | 0 |
Equity securities at cost | 941 | 820 |
Mortgage loans on real estate commercial and consumer allowance for credit loss | 26 | 0 |
Allowance for uncollectible reinsurance | 21 | 25 |
Allowance for uncollectible insurance receivables | 33 | 32 |
Accumulated depreciation on property and equipment | 231 | 215 |
Due from related parties | 0 | 21 |
Due to related parties | $ 89 | $ 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) | 271,391,603 | 271,412,591 |
Treasury stock, shares (in shares) | 1,648,640 | 1,627,652 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flows from Operating Activities | |||
Net income | $ 690 | $ 1,000 | $ 813 |
Adjustments to reconcile net income to net cash flows provided by operating activities: | |||
Deferred income tax benefit | (49) | (46) | (20) |
Trading portfolio activity | (5) | (16) | 0 |
Net investment losses (gains) | 54 | (29) | 52 |
Equity method investees | (8) | 11 | 330 |
Net amortization of investments | (67) | (89) | (70) |
Depreciation and amortization | 60 | 68 | 79 |
Changes in: | |||
Receivables, net | (409) | 137 | (229) |
Accrued investment income | 16 | (3) | 19 |
Deferred acquisition costs | (43) | (26) | (6) |
Insurance reserves | 1,681 | 358 | 482 |
Other, net | (145) | (225) | (223) |
Net cash flows provided by operating activities | 1,775 | 1,140 | 1,227 |
Dispositions: | |||
Fixed maturity securities - sales | 5,904 | 5,842 | 8,408 |
Fixed maturity securities - maturities, calls and redemptions | 3,760 | 2,997 | 2,370 |
Equity securities | 355 | 214 | 89 |
Limited partnerships | 373 | 479 | 343 |
Mortgage loans | 74 | 143 | 128 |
Purchases: | |||
Fixed maturity securities | (10,269) | (8,661) | (10,785) |
Equity securities | (452) | (186) | (258) |
Limited partnerships | (224) | (198) | (419) |
Mortgage loans | (172) | (298) | (128) |
Change in other investments | (8) | (11) | (12) |
Change in short term investments | (39) | (535) | 168 |
Purchases of property and equipment | (23) | (26) | (99) |
Other, net | 16 | 15 | 18 |
Net cash flows used by investing activities | (705) | (225) | (177) |
Cash Flows from Financing Activities | |||
Dividends paid to common stockholders | (950) | (929) | (896) |
Proceeds from the issuance of debt | 495 | 496 | 0 |
Repayment of debt | (419) | (520) | (180) |
Purchase of treasury stock | (18) | (23) | 0 |
Other, net | (10) | (12) | (9) |
Net cash flows used by financing activities | (902) | (988) | (1,085) |
Effect of foreign exchange rate changes on cash | 9 | 5 | (10) |
Net change in cash | 177 | (68) | (45) |
Cash, beginning of year | 242 | 310 | 355 |
Cash, end of period | $ 419 | $ 242 | $ 310 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Retained EarningsCumulative effect adjustments from changes in accounting guidance, net of tax | Retained EarningsBalance, beginning of year, as adjusted | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)Cumulative effect adjustments from changes in accounting guidance, net of tax | Accumulated Other Comprehensive Income (Loss)Balance, beginning of year, as adjusted | Treasury Stock |
Total stockholder's equity at beginning of period at Dec. 31, 2017 | $ 683 | $ 2,175 | $ 9,414 | $ (50) | $ 9,364 | $ 32 | $ (16) | $ 16 | $ (60) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock-based compensation | 17 | 3 | ||||||||
Dividends to common stockholders ($3.48, $3.40, and $3.30 per share) | (900) | |||||||||
Net income | $ 813 | 813 | ||||||||
Other comprehensive income (loss) | (894) | (894) | ||||||||
Total stockholder's equity at end of period at Dec. 31, 2018 | 11,217 | 683 | 2,192 | 9,277 | 9,277 | (878) | (878) | (57) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock-based compensation | 11 | 10 | ||||||||
Dividends to common stockholders ($3.48, $3.40, and $3.30 per share) | (929) | |||||||||
Net income | 1,000 | 1,000 | ||||||||
Other comprehensive income (loss) | 929 | 929 | ||||||||
Purchase of treasury stock | (23) | |||||||||
Total stockholder's equity at end of period at Dec. 31, 2019 | 12,215 | 683 | 2,203 | 9,348 | $ 9,343 | 51 | $ 51 | (70) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock-based compensation | 8 | 17 | ||||||||
Dividends to common stockholders ($3.48, $3.40, and $3.30 per share) | (952) | |||||||||
Net income | 690 | 690 | ||||||||
Other comprehensive income (loss) | 752 | 752 | ||||||||
Purchase of treasury stock | (18) | |||||||||
Total stockholder's equity at end of period at Dec. 31, 2020 | $ 12,707 | $ 683 | $ 2,211 | $ 9,081 | $ (5) | $ 803 | $ (71) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity - (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared per share (usd per share) | $ 3.48 | $ 3.40 | $ 3.30 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The Consolidated Financial Statements include the accounts of CNA Financial Corporation (CNAF) and its subsidiaries. Collectively, CNAF and its subsidiaries are referred to as CNA or the Company. Loews Corporation (Loews) owned approximately 89.6% of the outstanding common stock of CNAF as of December 31, 2020. The accompanying Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). Intercompany amounts have been eliminated. The preparation of Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates. 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 reinsurance and insurance 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. See the accounting policy discussion within this Note, as well as Notes B and G to the Consolidated Financial Statements for additional information regarding credit losses. ASU 2014-09: In May 2014, the FASB issued ASU No. 2014-09, Revenue Recognition (Topic 606) : Revenue from Contracts with Customers . The standard excludes from its scope the accounting for insurance contracts, financial instruments, and certain other agreements that are governed under other GAAP guidance, but the standard does apply to certain of the Company's warranty products and services. The updated guidance requires an entity to recognize revenue as performance obligations are met, in an amount that reflects the consideration the entity is entitled to receive for the transfer of the promised goods or services. On January 1, 2018, the Company adopted the updated guidance using the modified retrospective method applied to all contracts which were not completed as of the date of adoption and recognized a cumulative effect adjustment that decreased Retained earnings by $66 million, net of tax. See Note R to the Consolidated Financial Statements for additional information regarding non-insurance revenues from contracts with customers. ASU 2016-01: In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . The updated accounting guidance requires changes to the reporting model for financial instruments. The guidance primarily changes the model for equity securities by requiring changes in the fair value of equity securities (except those accounted for under the equity method of accounting, those without readily determinable fair values and those that result in consolidation of the investee) to be recognized through the income statement. The Company adopted the updated guidance on January 1, 2018 and recognized a cumulative effect adjustment that increased beginning Retained earnings by $28 million, net of tax. 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, 2022. Early adoption is permitted. The Company may elect to apply the guidance using either a modified retrospective transition method or a full retrospective transition method. The guidance requires restatement of prior periods presented. The Company plans to adopt using the modified retrospective transition method and is currently evaluating 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. Insurance Operations Premiums: Insurance premiums on property and casualty insurance contracts are recognized in proportion to the underlying risk insured and are principally earned ratably over the term of the policies. Premiums on long term care contracts are earned ratably over the policy year in which they are due. The reserve for unearned premiums represents the portion of premiums written relating to the unexpired terms of coverage. Property and casualty contracts that are retrospectively rated or subject to audit premiums contain provisions that result in an adjustment to the initial policy premium depending on the contract provisions. These provisions stipulate the adjustment due to loss experience of the insured during the coverage period, or changes in the level of exposure to insurance risk. For such contracts, the Company estimates the amount of ultimate premiums that the Company may earn upon completion of the coverage period and recognizes either an asset or a liability for the difference between the initial policy premium and the estimated ultimate premium. The Company either adjusts such estimated ultimate premium amounts during the course of the coverage period based on actual results to date, or by conducting premium audits after the policy has expired to determine the final exposure to insured risks. The resulting adjustment is recorded as either a reduction of or an increase to the earned premiums for the period. Insurance receivables include balances due currently or in the future, including amounts due from insureds related to paid losses under high deductible policies, and are presented at unpaid balances, net of an allowance for uncollectible receivables. A loss rate methodology is used to determine expected credit losses for insurance receivables. This methodology uses the Company’s historical annual credit losses relative to gross premium written to develop a range of credit loss rates for each dollar of gross written premium underwritten. The expected credit loss for amounts due from insureds under high deductible and retrospectively rated policies is calculated on a pool basis, informed by historical default rate data obtained from major rating agencies. Changes in the allowance are presented as a component of Other operating expenses on the Consolidated Statements of Operations. Amounts are considered past due based on policy payment terms. Insurance receivables and any related allowance are written off after collection efforts are exhausted or a negotiated settlement is reached. See the Credit Losses section of this note for additional information on the Company’s allowances for expected credit losses. Claim and claim adjustment expense reserves: Claim and claim adjustment expense reserves, except reserves for structured settlements not associated with asbestos and environmental pollution (A&EP), workers' compensation lifetime claims and long term care claims, are not discounted and are based on i) case basis estimates for losses reported on direct business, adjusted in the aggregate for ultimate loss expectations; ii) estimates of incurred but not reported (IBNR) losses; iii) estimates of losses on assumed reinsurance; iv) estimates of future expenses to be incurred in the settlement of claims; v) estimates of salvage and subrogation recoveries and vi) estimates of amounts due from insureds related to losses under high deductible policies. Management considers current conditions and trends as well as past Company and industry experience in establishing these estimates. The effects of inflation, which can be significant, are implicitly considered in the reserving process and are part of the recorded reserve balance. Ceded claim and claim adjustment expense reserves are reported as a component of Reinsurance receivables on the Consolidated Balance Sheets. Claim and claim adjustment expense reserves are presented net of anticipated amounts due from insureds related to losses under deductible policies of $1.2 billion as of December 31, 2020 and 2019. A significant portion of these amounts are supported by collateral. The Company has an allowance for uncollectible deductible amounts, which is presented as a component of the allowance for doubtful accounts included in Insurance receivables on the Consolidated Balance Sheets. Structured settlements have been negotiated for certain property and casualty insurance claims. Structured settlements are agreements to provide fixed periodic payments to claimants. The Company's obligations for structured settlements not funded by annuities are included in claim and claim adjustment expense reserves and are discounted at a weighted average interest rate of 6.5% and 7.1% as of December 31, 2020 and 2019. As of December 31, 2020 and 2019, the discounted reserves for unfunded structured settlements were $520 million and $497 million, net of discount of $657 million and $724 million. For the years ended December 31, 2020, 2019 and 2018, the amount of interest recognized on the discounted reserves of unfunded structured settlements was $35 million, $36 million and $40 million, respectively. This interest accretion is presented as a component of Insurance claims and policyholders’ benefits on the Consolidated Statements of Operations, but is excluded from the Company’s disclosure of prior year loss reserve development. Workers' compensation lifetime claim reserves are calculated using mortality assumptions determined through statutory regulation and economic factors. At December 31, 2020 and 2019, workers' compensation lifetime claim reserves are discounted at a 3.5% interest rate. As of December 31, 2020 and 2019, the discounted reserves for workers’ compensation lifetime claim reserves were $258 million and $293 million, net of discount of $113 million and $135 million. For the years ended December 31, 2020, 2019 and 2018, the amount of interest accretion recognized on the discounted reserves of workers’ compensation lifetime claim reserves was $15 million, $21 million and $16 million, respectively. This interest accretion is presented as a component of Insurance claims and policyholders' benefits on the Consolidated Statements of Operations, but is excluded from the Company's disclosure of prior year loss reserve development. Long term care claim reserves for policyholders that are currently receiving benefits are calculated using mortality and morbidity assumptions based on Company and industry experience. These long term care claim reserves are discounted at a weighted average interest rate of 5.8% and 5.9% as of December 31, 2020 and 2019. As of December 31, 2020 and 2019, such discounted reserves totaled $2.7 billion and $2.7 billion, net of discount of $439 million and $462 million. Future policy benefit reserves: Future policy benefit reserves represent the active life reserves related to the Company's long term care policies for policyholders that are not currently receiving benefits and are computed using the net level premium method, which incorporates actuarial assumptions as to morbidity, persistency, inclusive of mortality, discount rate, future premium rate adjustments and expenses. Expense assumptions primarily relate to claim adjudication. These assumptions are locked in over the life of the policy; however if a premium deficiency emerges, the assumptions are unlocked and the future policy benefit reserves are increased. The September 30, 2020 gross premium valuation (GPV) indicated a premium deficiency of $74 million and future policy benefit reserves at that date were increased accordingly. As a result, the long term care active life reserves carried as of September 30, 2020 represent management’s best estimate assumptions at that date with no margin for adverse deviation. Long term care active life reserves are discounted at a weighted average interest rate of 5.4% and 5.7% as of December 31, 2020 and 2019. In circumstances where the cash flow projections supporting future policy benefit reserves are expected to result in profits being recognized in early future years followed by losses in later future years, the future policy benefit reserves are increased in the future profitable years by an amount necessary to offset losses that are projected to be recognized in later future years. The amount of the additional future policy benefit reserves recorded in each period is determined by applying the ratio of the present value of future losses divided by the present value of future profits from the most recently completed GPV to long term care core income in that period. Insurance-related assessments: Liabilities for insurance-related assessments are accrued when an assessment is probable, when it can be reasonably estimated and when the event obligating the entity to pay an imposed or probable assessment has occurred. Liabilities for insurance-related assessments are not discounted and are included as part of Other liabilities on the Consolidated Balance Sheets. As of December 31, 2020 and 2019, the liability balances were $82 million and $84 million. Reinsurance: Reinsurance accounting allows for contractual cash flows to be reflected as premiums and losses. To qualify for reinsurance accounting, reinsurance agreements must include risk transfer. To meet risk transfer requirements, a reinsurance contract must include both insurance risk, consisting of underwriting and timing risk, and a reasonable possibility of a significant loss for the assuming entity. Reinsurance receivables related to paid losses are presented at unpaid balances. Reinsurance receivables related to unpaid losses are estimated in a manner consistent with claim and claim adjustment expense reserves or future policy benefit reserves. Reinsurance receivables are reported net of an allowance for uncollectible amounts on the Consolidated Balance Sheets. The cost of reinsurance is primarily accounted for over the life of the underlying reinsured policies using assumptions consistent with those used to account for the underlying policies or over the reinsurance contract period. The ceding of insurance does not discharge the primary liability of the Company. The Company has established an allowance for uncollectible reinsurance receivables which relates to both amounts already billed on ceded paid losses as well as ceded reserves that will be billed when losses are paid in the future. For assessing expected credit losses, the Company separates reinsurance receivables into two pools: voluntary reinsurance receivables and involuntary receivables related 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. Reinsurer financial strength ratings are updated and reviewed on an annual basis or sooner if the Company becomes aware of significant changes related to a reinsurer. The allowance for uncollectible reinsurance receivables is estimated on the basis of periodic evaluations of balances due from reinsurers, reinsurer financial strength rating and solvency, industry experience and current and forecast economic conditions. Because billed receivables generally approximate 5% or less of total reinsurance receivables, the age of the reinsurance receivables related to paid losses is not a significant input into the allowance analysis. Changes in the allowance for uncollectible reinsurance receivables are presented as a component of Insurance claims and policyholders' benefits on the Consolidated Statements of Operations. See the Credit Losses section of this note for additional information on the Company's allowances for expected credit losses. Amounts are considered past due based on the reinsurance contract terms. Reinsurance receivables related to paid losses and any related allowance are written off after collection efforts have been exhausted or a negotiated settlement is reached with the reinsurer. Reinsurance receivables from insolvent insurers related to paid losses are written off when the settlement due from the estate can be reasonably estimated. At the time reinsurance receivables related to paid losses are written off, any required adjustment to reinsurance receivables related to unpaid losses is recorded as a component of Insurance claims and policyholders' benefits on the Consolidated Statements of Operations. A loss portfolio transfer is a retroactive reinsurance contract. If the cumulative claim and allocated claim adjustment expenses ceded under a loss portfolio transfer exceed the consideration paid, the resulting gain from such excess is deferred and amortized into earnings in future periods in proportion to actual recoveries under the loss portfolio transfer. In any period in which there is a revised estimate of claim and allocated claim adjustment expenses and the loss portfolio transfer is in a gain position, the deferred gain is recalculated as if the revised estimate was available at the inception date of the loss portfolio transfer and the change in the deferred gain is recognized in earnings. Deferred acquisition costs: Deferrable acquisition costs include commissions, premium taxes and certain underwriting and policy issuance costs which are incremental direct costs of successful contract acquisitions. Acquisition costs related to property and casualty business are deferred and amortized ratably over the period the related premiums are earned. Deferred acquisition costs are presented net of ceding commissions and other ceded acquisition costs. The Company evaluates deferred acquisition costs for recoverability. Anticipated investment income is considered in the determination of the recoverability of deferred acquisition costs. Adjustments, if necessary, are recorded in current period results of operations. Policyholder dividends: Policyholder dividends are paid to participating policyholders within the worker’s compensation and surety lines of business. Net written premiums for participating dividend policies were approximately 1% of total net written premiums for each of the years ended December 31, 2020, 2019 and 2018. Dividends to policyholders are accrued according to the Company's best estimate of the amount to be paid in accordance with contractual provisions and applicable state laws. Dividends to policyholders are presented as a component of Insurance claims & policyholders' benefits on the Consolidated Statements of Operations and Other liabilities on the Consolidated Balance Sheets. Investments The Company classifies its fixed maturity securities as either available-for-sale or trading, and as such, they are carried at fair value. Changes in fair value of trading securities are reported within Net investment income on the Consolidated Statements of Operations. Changes in fair value related to available-for-sale securities are reported as a component of Other comprehensive income. The cost of fixed maturity securities classified as available-for-sale is adjusted for amortization of premiums and accretion of discounts, which are included in Net investment income on the Consolidated Statements of Operations. The amortization of premium and accretion of discount for fixed maturity securities takes into consideration call and maturity dates that produce the lowest yield. For asset-backed securities included in fixed maturity securities, the Company recognizes income using an effective yield based on anticipated prepayments and the estimated economic life of the securities. When estimates of prepayments change, the effective yield is recalculated to reflect actual payments to date and anticipated future payments predominantly using the retrospective method. To the extent that unrealized gains on fixed maturity securities supporting long term care products and structured settlements not funded by annuities would result in a premium deficiency if those gains were realized, a related increase in Insurance reserves is recorded, net of tax, as a reduction of net unrealized gains through Other comprehensive income (Shadow Adjustments). Shadow Adjustments, net of tax, increased $575 million and $1,120 million for the years ended December 31, 2020 and 2019, respectively. As of December 31, 2020 and 2019, net unrealized gains on investments included in Accumulated other comprehensive income (AOCI) were correspondingly reduced by Shadow Adjustments of $2,773 million and $2,198 million, respectively. Equity securities are carried at fair value. The Company's non-redeemable preferred stock contain characteristics of debt securities, are priced similarly to bonds and are held primarily for income generation through periodic dividends. While recognition of gains and losses on these securities is not discretionary, management does not consider the changes in fair value of non-redeemable preferred stock to be reflective of our primary operations. As such, the changes in the fair value of these securities are recorded through Net investment gains (losses) on the Consolidated Statements of Operations. The Company owns certain common stock with the intention of holding the securities primarily for market appreciation and as such, the changes in the fair value of these securities are recorded through Net investment income. The Company's carrying value of investments in limited partnerships is its share of the net asset value of each partnership, as determined by the general partner. Certain partnerships for which results are not available on a timely basis are reported on a lag, primarily three months or less. Changes in net asset values are accounted for under the equity method and recorded within Net investment income on the Consolidated Statements of Operations. Mortgage loans are commercial in nature, are carried at unpaid principal balance, net of unamortized fees and an allowance for expected credit losses, and are recorded once funded. 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. The Company applies expected credit loss rates by pool to the outstanding receivable balances. Changes in the allowance for mortgage loans are presented as a component of Net investment gains (losses) on the Consolidated Statements of Operations. Prior to 2020, mortgage loans were evaluated on an individual loan basis considering the collection experience of each loan and other credit quality indicators such as DSCR and the credit-worthiness of the borrower or tenants of credit tenant loan properties. Mortgage loans were considered to be impaired loans and a loss incurred when it was probable that contractual principal and interest payments would not be collected and any impairment losses were recognized as a direct write-down of amortized cost. See the Credit Losses section of this note for additional information on the Company’s allowances for expected credit losses. Interest income from mortgage loans is recognized on an accrual basis using the effective yield method. Other invested assets include overseas deposits. Overseas deposits are valued using the net asset value per share (or equivalent) practical expedient. They are primarily short-term government securities, agency securities and corporate bonds held in trusts that are managed by Lloyd's of London. These funds are required of Lloyd's syndicates to protect policyholders in overseas markets and may be denominated in local currency. Short term investments are carried at fair value, with the exception of cash accounts earning interest, which are carried at cost and approximate fair value. Changes in fair value are reported as a component of Other comprehensive income. Purchases and sales of all securities are recorded on the trade date, except for private placement securities, including bank loan participations, which are recorded once funded. Net investment gains and losses are determined on the basis of the cost or amortized cost of the specific securities sold. In the normal course of investing activities, the Company enters into relationships with variable interest entities (VIEs), as both an investor in limited partnerships and asset-backed securities issued by third-party VIEs. The Company is not the primary beneficiary of these VIEs, and therefore does not consolidate them. The Company determines whether it is the primary beneficiary of a VIE based on a qualitative assessment of the relative power and benefits of the Company and the other participants in the VIE. The Company’s maximum exposure to loss with respect to these investments is limited to the investment carrying values included in the Company’s Consolidated Balance Sheets and any unfunded commitments. An available for sale security is impaired if the fair value of the security is less than its cost adjusted for accretion, amortization and allowance for credit losses. When a security is impaired, it is evaluated to determine whether the Company intends to sell the security before recovery of amortized cost or whether a credit loss exists. Losses on securities that the Company intends to sell are recognized as impairment losses within Net investment gains (losses) on the Consolidated Statements of Operations. If a credit loss exists, an allowance is established and the corresponding amount is recognized as an impairment loss within Net investment gains (losses) on the Consolidated Statements of Operations. The allowance for credit losses related to available-for-sale fixed maturity securities is the difference between the 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. In subsequent periods, the allowance is reviewed, with any changes in the allowance presented as a component of Net investment gains (losses) on the Consolidated Statements of Operations. Changes in the difference between the amortized cost basis, net of the allowance, and the fair value, are recognized in Other comprehensive income. Significant judgment is required in the determination of whether an impairment loss has occurred for a security. The Company follows a consistent and systematic process for determining and recording an impairment loss, including the evaluation of securities in an unrealized loss position and securities with an allowance for credit losses on at least a quarterly basis. The Company’s assessment of whether an impairment loss has occurred incorporates both quantitative and qualitative information. A credit loss exists if the present value of cash flows expected to be collected is less than the amortized cost basis. Significant assumptions enter into these cash flow projections including delinquency rates, probable risk of default, loss severity upon a default, over collateralization and interest coverage triggers and credit support from lower level tranches. The Company 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 and long-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. See the Credit Losses section of this note for additional information on the Company’s allowances for expected credit losses. Prior to 2020, the Company’s assessment of whether an impairment loss occurred also incorporated both quantitative and qualitative information. Fixed maturity securities in an unrealized loss position that the Company intended to sell, or it more likely than not would be required to sell before recovery of amortized cost, were considered to be impaired and the entire difference between the amortized cost basis and fair value of the security was recognized as an impairment loss in earnings as a direct write-down of amortized cost. The remaining fixed maturity securities in an unrealized loss position were evaluated to determine if a credit loss existed. If a credit loss was determined to exist, the credit loss was recognized in earnings as a direct write-down of amortized cost. Credit Losses The allowances for credit losses on fixed maturity securities, mortgage loans, reinsurance receivables and insurance receivables are valuation accounts that are reported as a reduction of a financial asset’s |
Investments
Investments | 12 Months Ended |
Dec. 31, 2020 | |
Investments [Abstract] | |
Investments | Investments The significant components of Net investment income are presented in the following table. Years ended December 31 (In millions) 2020 2019 2018 Fixed maturity securities $ 1,728 $ 1,817 $ 1,795 Equity securities 65 85 18 Limited partnership investments 121 180 (22) Mortgage loans 57 51 50 Short term investments 9 34 26 Trading portfolio 18 9 7 Other 1 5 4 Gross investment income 1,999 2,181 1,878 Investment expense (64) (63) (61) Net investment income $ 1,935 $ 2,118 $ 1,817 For the years ended December 31, 2020 and 2019 , $34 million and $38 million of Net i nvestment income was recognized due to the change in fair value of common stock still held as of December 31, 2020 and 2019. As of December 31, 2020 and 2019, the Company held less than $1 million of non-income producing fixed maturity securities. As of December 31, 2020 and 2019, no investments in a single issuer exceeded 10% of stockholders' equity, other than investments in securities issued by the U.S. Treasury and obligations of government-sponsored enterprises. Net investment gains (losses) are presented in the following table. Years ended December 31 (In millions) 2020 2019 2018 Net investment gains (losses): Fixed maturity securities: Gross gains $ 220 $ 125 $ 168 Gross losses (220) (131) (164) Net investment gains (losses) on fixed maturity securities — (6) 4 Equity securities (3) 66 (74) Derivatives (10) (11) 9 Mortgage loans (21) — — Short term investments and other (20) (20) 9 Net investment gains (losses) $ (54) $ 29 $ (52) For the ye ars ended December 31, 2020 and 2019, $3 million of losses and $66 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 December 31, 2020 and 2019. Short term investments and other included a $20 million loss for the year ended December 31, 2020 related to the redemption of the Company's $400 million senior notes due August 2021 and a $21 million loss for the year ended December 31, 2019 related to the redemption of the Company's $500 million senior notes due August 2020. The following table presents the activity related to the allowance on available-for-sale securities with credit impairments and PCD assets. Accrued interest receivable on available-for-sale fixed maturity securities totaled $371 million and is excluded from the estimate of expected credit losses and the amortized cost basis in the table included within this Note. Year ended December 31, 2020 (In millions) Corporate and other bonds Asset-backed Total Allowance for credit losses: Beginning balance $ — $ — $ — Additions to the allowance for credit losses: Impact of adopting ASC 326 6 — 6 Securities for which credit losses were not previously recorded 67 12 79 Available-for-sale securities accounted for as PCD assets 5 — 5 Reductions to the allowance for credit losses: Securities sold during the period (realized) 22 — 22 Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis 1 — 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 (32) 5 (27) Ending balance $ 23 $ 17 $ 40 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. Years ended December 31 (In millions) 2020 2019 2018 Fixed maturity securities available-for-sale: Corporate and other bonds $ 87 $ 33 $ 12 Asset-backed 24 11 9 Impairment losses recognized in earnings $ 111 $ 44 $ 21 The Company also recognized $21 million of losses in 2020 related to mortgage loans primarily due to changes in expected credit losses. The net change in unrealized gains on investments, which consists solely of the change in unrealized gains on fixed maturity securities, was $1,637 million, $2,620 million and $(1,811) million for the years ended December 31, 2020, 2019 and 2018. The following tables present a summary of fixed maturity securities. December 31, 2020 Cost or Gross Gross Allowance for Credit Losses (1) Estimated (In millions) Fixed maturity securities available-for-sale: Corporate and other bonds $ 20,792 $ 3,578 $ 22 $ 23 $ 24,325 States, municipalities and political subdivisions 9,729 1,863 — — 11,592 Asset-backed: Residential mortgage-backed 3,442 146 1 — 3,587 Commercial mortgage-backed 1,933 93 42 17 1,967 Other asset-backed 2,179 81 9 — 2,251 Total asset-backed 7,554 320 52 17 7,805 U.S. Treasury and obligations of government-sponsored enterprises 339 2 3 — 338 Foreign government 512 32 — — 544 Redeemable preferred stock — — — — — Total fixed maturity securities available-for-sale 38,926 5,795 77 40 44,604 Total fixed maturity securities trading 27 — — — 27 Total fixed maturity securities $ 38,953 $ 5,795 $ 77 $ 40 $ 44,631 (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 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 December 31, 2020 Estimated Gross Estimated Gross Estimated Gross (In millions) Fixed maturity securities available-for-sale: Corporate and other bonds $ 609 $ 21 $ 12 $ 1 $ 621 $ 22 States, municipalities and political subdivisions 33 — — — 33 — Asset-backed: Residential mortgage-backed 71 1 11 — 82 1 Commercial mortgage-backed 533 40 28 2 561 42 Other asset-backed 344 9 13 — 357 9 Total asset-backed 948 50 52 2 1,000 52 U.S. Treasury and obligations of government-sponsored enterprises 63 3 — — 63 3 Foreign government 13 — — — 13 — Total $ 1,666 $ 74 $ 64 $ 3 $ 1,730 $ 77 Less than 12 Months 12 Months or Longer Total December 31, 2019 Estimated Gross Estimated Gross Estimated Gross (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 Based on current facts and circumstances, the Company believes the unrealized losses presented in the December 31, 2020 securities in a gross unrealized loss position table above are not indicative of the ultimate collectibility of the current amortized cost of the securities, but rather are attributable to changes in interest rates, credit spreads and other factors. The Company has no current intent to sell securities with unrealized losses, nor is it more likely than not that it will be required to sell prior to recovery of amortized cost; accordingly, the Company has determined that there are no additional impairment losses to be recorded as of December 31, 2020. Contractual Maturity The following table presents available-for-sale fixed maturity securities by contractual maturity. December 31 2020 2019 (In millions) Cost or Estimated Cost or Estimated Due in one year or less $ 1,456 $ 1,458 $ 1,334 $ 1,356 Due after one year through five years 12,304 13,098 9,746 10,186 Due after five years through ten years 12,319 13,878 14,892 15,931 Due after ten years 12,847 16,170 12,134 14,714 Total $ 38,926 $ 44,604 $ 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. Limited Partnerships The carrying value of limited partnerships as of December 31, 2020 and 2019 was $1,619 million and $1,752 million, which includes net undistributed earnings of $235 million and $229 million. Limited partnerships comprising 49% of the total carrying value are reported on a current basis through December 31, 2020 with no reporting lag, 10% are reported on a one month lag and the remainder are reported on more than a one month lag. The number of limited partnerships held and the strategies employed provide diversification to the limited partnership portfolio and the overall invested asset portfolio. Limited partnerships comprising 51% and 61% of the carrying value as of December 31, 2020 and 2019 employ hedge fund strategies. Limited partnerships comprising 40% and 33% of the carrying value as of December 31, 2020 and 2019 were invested in private debt and equity, and the remainder was primarily invested in real estate strategies. Hedge fund strategies include both long and short positions in fixed income, equity and derivative instruments. These hedge fund strategies may seek to generate gains from mispriced or undervalued securities, price differentials between securities, distressed investments, sector rotation or various arbitrage disciplines. Within hedge fund strategies, approximately 55% were equity related, 26% pursued a multi-strategy approach, 14% were focused on distressed investments and 5% were fixed income related as of December 31, 2020. The ten largest limited partnership positions held totaled $775 million and $893 million as of December 31, 2020 and 2019. Based on the most recent information available regarding the Company’s percentage ownership of the individual limited partnerships, the carrying value reflected on the Consolidated Balance Sheets represents approximately 2% of the aggregate partnership equity as of December 31, 2020 and 2019, and the related income reflected on the Consolidated Statements of Operations represents approximately 2%, 2% and 3% of the changes in aggregate partnership equity for the years ended December 31, 2020, 2019 and 2018. There are risks inherent in limited partnership investments which may result in losses due to short-selling, derivatives or other speculative investment practices. The use of leverage increases volatility generated by the underlying investment strategies. The Company’s hedge fund limited partnership investments contain withdrawal provisions that generally limit liquidity for a period of thirty days up to one year or longer. Private equity and other non-hedge funds generally do not permit voluntary withdrawals. Typically, hedge fund withdrawals require advance written notice of up to 90 days. Derivative Financial Instruments The Company may use derivatives in the normal course of business, primarily in an attempt to reduce its exposure to market risk (principally interest rate risk and foreign currency risk) stemming from various assets and liabilities. The Company's principal objective under such strategies is to achieve the desired reduction in economic risk, even if the position does not receive hedge accounting treatment. The Company may enter into interest rate swaps, futures and forward commitments to purchase securities to manage interest rate risk. The Company may use foreign currency forward contracts to manage foreign currency risk. Credit exposure associated with non-performance by the counterparties to derivative instruments is generally limited to the uncollateralized fair value of the asset related to the instruments recognized on the Consolidated Balance Sheets. The Company generally requires that all over-the-counter derivative contracts be governed by an International Swaps and Derivatives Association Master Agreement, and exchanges collateral under the terms of these agreements with its derivative investment counterparties depending on the amount of the exposure and the credit rating of the counterparty. Gross estimated fair values of derivative positions are presented in Other invested assets and Other liabilities on the Consolidated Balance Sheets. The Company does not offset derivative positions against the fair value of collateral provided or positions subject to netting arrangements. There would be no significant difference in the balance included in such accounts if the estimated fair values were presented net as of December 31, 2020 and 2019. There was no cash collateral provided by the Company or cash collateral received from counterparties as of December 31, 2020 or 2019. The Company holds an embedded derivative on a funds withheld liability with a notional value of $190 million and $182 million and a fair value of $(19) million and $(7) million as of December 31, 2020 and 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 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 private placement securities. As of December 31, 2020, the Company had commitments to purchase or fund approximately $1,210 million and sell approximately $85 million under the terms of these investments. Investments on Deposit Securities with carrying values of approximately $3.0 billion and $2.7 billion were deposited by the Company’s insurance subsidiaries under requirements of regulatory authorities and others as of December 31, 2020 and 2019. Cash and securities with carrying values of approximately $1.1 billion and $1.1 billion were deposited with financial institutions in trust accounts or as collateral for letters of credit to secure obligations with various third parties as of December 31, 2020 and 2019. Mortgage Loans The following table presents the amortized cost basis of mortgage loans for each credit quality indicator by year of origination. December 31, 2020 Mortgage Loans Amortized Cost Basis by Origination Year (1) (In millions) 2020 2019 2018 2017 2016 Prior Total DSCR ≥1.6x LTV less than 55% $ 75 $ 33 $ 36 $ 115 $ 33 $ 156 $ 448 LTV 55% to 65% 14 20 14 15 11 — 74 LTV greater than 65% — 5 — — 25 — 30 DSCR 1.2x - 1.6x LTV less than 55% — 17 — 5 9 68 99 LTV 55% to 65% 20 29 53 27 — — 129 LTV greater than 65% 52 54 — 8 — 12 126 DSCR ≤1.2 LTV less than 55% — 50 — 8 7 3 68 LTV 55% to 65% — 48 — — — — 48 LTV greater than 65% — 28 — 37 — 7 72 Total $ 161 $ 284 $ 103 $ 215 $ 85 $ 246 $ 1,094 (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 December 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. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 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. December 31, 2020 Total (In millions) Level 1 Level 2 Level 3 Assets Fixed maturity securities: Corporate bonds and other $ 355 $ 24,109 $ 770 $ 25,234 States, municipalities and political subdivisions — 11,546 46 11,592 Asset-backed — 7,497 308 7,805 Total fixed maturity securities 355 43,152 1,124 44,631 Equity securities: Common stock 175 — 20 195 Non-redeemable preferred stock 68 722 7 797 Total equity securities 243 722 27 992 Short term and other 1,761 28 — 1,789 Total assets $ 2,359 $ 43,902 $ 1,151 $ 47,412 Liabilities Other liabilities $ — $ 19 $ — $ 19 Total liabilities $ — $ 19 $ — $ 19 December 31, 2019 Total (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) 1 — (1) (4) (4) Reported in Net investment income — — 2 (2) — Reported in Other comprehensive income (loss) 43 1 16 — 60 Total realized and unrealized investment gains (losses) 44 1 17 (6) 56 Purchases 264 45 154 15 478 Sales (3) — (9) — (12) Settlements (13) — (32) — (45) Transfers into Level 3 10 — 30 — 40 Transfers out of Level 3 — — (17) — (17) Balance as of December 31, 2020 $ 770 $ 46 $ 308 $ 27 $ 1,151 Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2020 recognized in Net income (loss) in the period $ — $ — $ — $ (6) $ (6) Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2020 recognized in Other comprehensive income (loss) in the period 43 1 18 — 62 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) 33 — 8 — 41 Total realized and unrealized investment gains (losses) 33 — 8 (2) 39 Purchases 256 — 48 2 306 Sales — — — — — Settlements (11) — (16) — (27) Transfers into Level 3 — — 45 — 45 Transfers out of Level 3 (32) — (117) — (149) Balance as of December 31, 2019 $ 468 $ — $ 165 $ 18 $ 651 Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2019 recognized in Net income (loss) in the period $ — $ — $ — $ (2) $ (2) Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2019 recognized in Other comprehensive income (loss) in the period 28 — 7 — 35 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 Consolidated Balance Sheets because certain short term investments, such as time deposits, are not measured at fair value. As of December 31, 2020 and December 31, 2019, there were $71 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. December 31, 2020 Estimated Fair Value Valuation Technique(s) Unobservable Input(s) Range Fixed maturity securities $ 966 Discounted cash flow Credit spread 1% - 8% (3%) December 31, 2019 Estimated Fair Value Valuation Technique(s) Unobservable Input(s) Range 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 Consolidated Balance Sheets are presented in the following tables. December 31, 2020 Carrying Estimated Fair Value (In millions) Level 1 Level 2 Level 3 Total Assets Mortgage loans $ 1,068 $ — $ — $ 1,151 $ 1,151 Liabilities Long term debt $ 2,776 $ — $ 3,148 $ — $ 3,148 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 In the first quarter of 2020, the note receivable was repaid in full. As of December 31, 2019, the note receivable was included within Other assets on the Consolidated Balance Sheets. The carrying amounts reported on the Consolidated Balance Sheets for Cash, Short term investments not carried at fair value, Accrued investment income and certain Other assets and Other liabilities approximate fair value due to the short term nature of these items. These assets and liabilities are not listed in the tables above. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The CNA Tax Group is included in the consolidated federal income tax return of Loews and its eligible subsidiaries. Loews and the Company have agreed that for each taxable year, the Company will 1) be paid by Loews the amount, if any, by which the Loews consolidated federal income tax liability is reduced by virtue of the inclusion of the CNA Tax Group in the Loews consolidated federal income tax return, or 2) pay to Loews an amount, if any, equal to the federal income tax that would have been payable by the CNA Tax Group filing a separate consolidated tax return. In the event that Loews should have a net operating loss in the future computed on the basis of filing a separate consolidated tax return without the CNA Tax Group, the Company may be required to repay tax recoveries previously received from Loews. This agreement may be canceled by either party upon 30 days written notice. For the years ended December 31, 2020, 2019 and 2018, the Company paid $65 million, $239 million and $275 million to Loews related to federal income taxes. For 2018 through 2020, Loews and the Company participate in the Internal Revenue Service (IRS) Compliance Assurance Process (CAP), which is a voluntary program for large corporations. Under CAP, the IRS generally conducts a real-time audit and works contemporaneously with the Company to resolve any issues prior to the filing of the 2018 and 2019 tax returns. The 2018 and 2019 examinations were completed in this manner. For 2020, the Company was selected to participate in the phase of CAP reserved for taxpayers whose risk of noncompliance does not warrant use of IRS resources. The Company believes that participation in CAP should reduce tax-related uncertainties, if any. As of December 31, 2020 and 2019, there were no unrecognized tax benefits. The Company recognizes interest accrued related to unrecognized tax benefits and tax refund claims in Income tax (expense) benefit on the Consolidated Statements of Operations. The Company recognizes penalties (if any) in Income tax (expense) benefit on the Consolidated Statements of Operations. During 2020, 2019 and 2018 the Company recognized no interest and no penalties. There were no amounts accrued for interest or penalties as of December 31, 2020 or 2019. The following table presents a reconciliation between the Company's income tax expense at statutory rates and the recorded income tax expense. Years ended December 31 (In millions) 2020 2019 2018 Income tax expense at statutory rates $ (172) $ (257) $ (203) Tax benefit from tax exempt income 52 53 63 Foreign taxes and credits 2 (1) (1) State income taxes (6) (14) (13) Other tax expense (7) (4) 3 Income tax expense $ (131) $ (223) $ (151) As of December 31, 2020, no deferred taxes are required on the undistributed earnings of subsidiaries subject to tax. The following table presents the current and deferred components of the Company's income tax expense. Years ended December 31 (In millions) 2020 2019 2018 Current tax expense $ (180) $ (269) $ (171) Deferred tax benefit 49 46 20 Total income tax expense $ (131) $ (223) $ (151) Total income tax presented above includes foreign tax expense of approximately $16 million, $19 million and $5 million related to pretax income from foreign operations of approximately $45 million, $43 million and $22 million for the years ended December 31, 2020, 2019 and 2018. The deferred tax effects of the significant components of the Company's deferred tax assets and liabilities are presented in the following table. December 31 (In millions) 2020 2019 Deferred Tax Assets: Insurance reserves: Property and casualty claim and claim adjustment expense reserves $ 157 $ 129 Unearned premium reserves 174 153 Receivables 11 11 Employee benefits 122 127 Deferred retroactive reinsurance benefit 83 82 Other assets 143 132 Gross deferred tax assets 690 634 Deferred Tax Liabilities: Investment valuation differences 28 40 Deferred acquisition costs 93 83 Net unrealized gains 453 264 Software and hardware 31 34 Other liabilities 19 14 Gross deferred tax liabilities 624 435 Net deferred tax asset $ 66 $ 199 As of December 31, 2020, the CNA Tax Group had no loss carryforwards and a tax credit carryforward of $8 million, of which $4 million expires in 2029 and $4 million expires in 2030. The foreign operations had loss carryforwards of $48 million, of which $2 million expires in 2035 and $46 million has no expiration. The foreign operations had a tax credit carryforward of $3 million, which has no expiration. Although realization of deferred tax assets is not assured, management believes it is more likely than not that the recognized net deferred tax asset will be realized through recoupment of ordinary and capital taxes paid in prior carryback years and through future earnings, reversal of existing temporary differences and available tax planning strategies. As a result, no valuation allowance was recorded as of December 31, 2020 or 2019. |
Claim, Claim Adjustment Expense
Claim, Claim Adjustment Expense and Future Policy Benefit Reserves | 12 Months Ended |
Dec. 31, 2020 | |
Liability for Claims and Claims Adjustment Expense [Abstract] | |
Claim, Claim Adjustment Expense and Future Policy Benefit Reserves | Claim, Claim Adjustment Expense and Future Policy Benefit Reserves Property and casualty insurance claim and claim adjustment expense reserves represent the estimated amounts necessary to resolve all outstanding claims, including IBNR claims as of the reporting date. The Company's reserve projections are based primarily on detailed analysis of the facts in each case, the Company's experience with similar cases and various historical development patterns. Consideration is given to 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. Liability for Unpaid Claim and Claim Adjustment Expenses The table below reconciles the net liability for unpaid claim and claim adjustment expenses to the amount presented on the Consolidated Balance Sheets. As of December 31 (In millions) 2020 Net liability for unpaid claim and claim adjustment expenses: Specialty $ 4,898 Commercial 8,204 International 1,822 Corporate & Other 162 Life & Group (1) 3,615 Total net claim and claim adjustment expenses 18,701 Reinsurance receivables: (2) Specialty 850 Commercial 837 International 269 Corporate & Other (3) 1,921 Life & Group 128 Total reinsurance receivables 4,005 Total gross liability for unpaid claim and claim adjustment expenses $ 22,706 (1) The Life & Group segment amounts are primarily related to long term care claim reserves, but also include amounts related to unfunded structured settlements arising from short-duration contracts. Long term care policies are long-duration contracts. (2) Reinsurance receivables presented are gross of the allowance for uncollectible reinsurance and do not include reinsurance receivables related to paid losses. (3) The Corporate & Other Reinsurance receivables are primarily related to A&EP claims covered under the Loss Portfolio Transfer (LPT). 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. As of or for the years ended December 31 (In millions) 2020 2019 2018 Reserves, beginning of year: Gross $ 21,720 $ 21,984 $ 22,004 Ceded 3,835 4,019 3,934 Net reserves, beginning of year 17,885 17,965 18,070 Net incurred claim and claim adjustment expenses: Provision for insured events of current year 5,793 5,356 5,358 Increase (decrease) in provision for insured events of prior years (119) (127) (179) Amortization of discount 183 184 176 Total net incurred (1) 5,857 5,413 5,355 Net payments attributable to: Current year events (948) (992) (1,046) Prior year events (4,216) (4,584) (4,285) Total net payments (5,164) (5,576) (5,331) Foreign currency translation adjustment and other 123 83 (129) Net reserves, end of year 18,701 17,885 17,965 Ceded reserves, end of year 4,005 3,835 4,019 Gross reserves, end of year $ 22,706 $ 21,720 $ 21,984 (1) Total net incurred above does not agree to Insurance claims and policyholders' benefits as reflected on the Consolidated Statements of Operations due to amounts related to retroactive reinsurance deferred gain accounting, uncollectible reinsurance and benefit expenses related to future policy benefits, which are not reflected in the table above. Reserving Methodology In developing claim and claim adjustment expense (loss or losses) reserve estimates, the Company's actuaries perform detailed reserve analyses that are staggered throughout the year. Every reserve group is reviewed at least once during the year, but most are reviewed more frequently. The analyses generally review losses gross of ceded reinsurance and apply the ceded reinsurance terms to the gross estimates to establish estimates net of reinsurance. Factors considered include, but are not limited to, the historical pattern and volatility of the actuarial indications, the sensitivity of the actuarial indications to changes in paid and incurred loss patterns, the consistency of claims handling processes, the consistency of case reserving practices, changes in the Company's pricing and underwriting, pricing and underwriting trends in the insurance market and legal, judicial, social and economic trends. In addition to the detailed analyses, the Company reviews actual loss emergence for all products each quarter. In developing the loss reserve estimates for property and casualty contracts, the Company generally projects ultimate losses using several common actuarial methods as listed below. The Company reviews the various indications from the various methods and applies judgment to select an actuarial point estimate. The carried reserve may differ from the actuarial point estimate as a result of the Company's consideration of the factors noted above as well as the potential volatility of the projections associated with the specific product being analyzed and other factors affecting claims costs that may not be quantifiable through traditional actuarial analysis. The indicated required reserve is the difference between the selected ultimate loss and the inception-to-date paid losses. The difference between the selected ultimate loss and the case incurred or reported loss is IBNR. IBNR includes a provision for development on known cases as well as a provision for late reported incurred claims. The most frequently utilized methods to project ultimate losses include the following: • Paid development: The paid development method estimates ultimate losses by reviewing paid loss patterns and applying them to accident years with further expected changes in paid loss. • Incurred development: The incurred development method is similar to the paid development method, but it uses case incurred losses instead of paid losses. • Loss ratio: The loss ratio method multiplies premiums by an expected loss ratio to produce ultimate loss estimates for each accident year. • Bornhuetter-Ferguson using premiums and paid loss: The Bornhuetter-Ferguson using premiums and paid loss method is a combination of the paid development approach and the loss ratio approach. This method normally determines expected loss ratios similar to the approach used to estimate the expected loss ratio for the loss ratio method. • Bornhuetter-Ferguson using premiums and incurred loss: The Bornhuetter-Ferguson using premiums and incurred loss method is similar to the Bornhuetter-Ferguson using premiums and paid loss method except that it uses case incurred losses. • Frequency times severity: The frequency times severity method multiplies a projected number of ultimate claims by an estimated ultimate average loss for each accident year to produce ultimate loss estimates. • Stochastic modeling: The stochastic modeling produces a range of possible outcomes based on varying assumptions related to the particular product being modeled. For many exposures, especially those that are considered long-tail, a particular accident or policy year may not have a sufficient volume of paid losses to produce a statistically reliable estimate of ultimate losses. In such a case, the Company's actuaries typically assign more weight to the incurred development method than to the paid development method. As claims continue to settle and the volume of paid loss increases, the actuaries may assign additional weight to the paid development method. For most of the Company's products, even the incurred losses for accident or policy years that are early in the claim settlement process will not be of sufficient volume to produce a reliable estimate of ultimate losses. In these cases, the Company may not assign any weight to the paid and incurred development methods. The Company will use the loss ratio, Bornhuetter-Ferguson and frequency times severity methods. For short-tail exposures, the paid and incurred development methods can often be relied on sooner, primarily because the Company's history includes a sufficient number of years to cover the entire period over which paid and incurred losses are expected to change. However, the Company may also use the loss ratio, Bornhuetter-Ferguson and frequency times severity methods for short-tail exposures. For other more complex reserve groups where the above methods may not produce reliable indications, the Company uses additional methods tailored to the characteristics of the specific situation. The Company's reserving methodologies for mass tort and A&EP are similar as both are based on detailed reviews of large accounts with estimates of ultimate payments based on the facts in each case and the Company's view of applicable law and coverage litigation. Gross and Net Carried Reserves The following tables present the gross and net carried reserves. December 31, 2020 Specialty Commercial International Life & Group Corporate & Other Total (In millions) Gross Case Reserves $ 1,567 $ 3,724 $ 892 $ 3,406 $ 1,105 $ 10,694 Gross IBNR Reserves 4,181 5,317 1,199 337 978 12,012 Total Gross Carried Claim and Claim Adjustment Expense Reserves $ 5,748 $ 9,041 $ 2,091 $ 3,743 $ 2,083 $ 22,706 Net Case Reserves $ 1,410 $ 3,357 $ 777 $ 3,298 $ 88 $ 8,930 Net IBNR Reserves 3,488 4,847 1,045 317 74 9,771 Total Net Carried Claim and Claim Adjustment Expense Reserves $ 4,898 $ 8,204 $ 1,822 $ 3,615 $ 162 $ 18,701 December 31, 2019 Specialty Commercial International Life & Group Corporate & Other Total (In millions) Gross Case Reserves $ 1,481 $ 3,937 $ 858 $ 3,576 $ 1,137 $ 10,989 Gross IBNR Reserves 3,757 4,719 1,018 140 1,097 10,731 Total Gross Carried Claim and Claim Adjustment Expense Reserves $ 5,238 $ 8,656 $ 1,876 $ 3,716 $ 2,234 $ 21,720 Net Case Reserves $ 1,343 $ 3,543 $ 759 $ 3,441 $ 92 $ 9,178 Net IBNR Reserves 3,333 4,306 869 116 83 8,707 Total Net Carried Claim and Claim Adjustment Expense Reserves $ 4,676 $ 7,849 $ 1,628 $ 3,557 $ 175 $ 17,885 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. Years ended December 31 (In millions) 2020 2019 2018 Pretax (favorable) unfavorable development: Specialty $ (61) $ (92) $ (150) Commercial 43 (2) (25) International (2) 21 (4) Corporate & Other — — (2) Total pretax (favorable) unfavorable development $ (20) $ (73) $ (181) Segment Development Tables For the Specialty, Commercial and International segments, the following tables present further detail and commentary on the development reflected in the financial statements for each of the periods presented. Also presented are loss reserve development tables that illustrate the change over time of reserves established for claim and allocated claim adjustment expenses arising from short-duration insurance contracts for certain lines of business within each of these segments. Not all lines of business or segments are presented based on their context to the Company's overall loss reserves, calendar year reserve development, or calendar year net earned premiums. Insurance contracts are considered to be short-duration contracts when the contracts are not expected to remain in force for an extended period of time. The Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses tables, reading across, show the cumulative net incurred claim and allocated claim adjustment expenses relating to each accident year at the end of the stated calendar year. Changes in the cumulative amount across time are the result of the Company's expanded awareness of additional facts and circumstances that pertain to the unsettled claims. The Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses tables, reading across, show the cumulative amount paid for claims in each accident year as of the end of the stated calendar year. The Net Strengthening or (Releases) of Prior Accident Year Reserves tables, reading across, show the net increase or decrease in the cumulative net incurred accident year claim and allocated claim adjustment expenses during each stated calendar year and indicates whether the reserves for that accident year were strengthened or released. The information in the tables is reported on a net basis after reinsurance and does not include the effects of discounting. The information contained in calendar years 2019 and prior is unaudited. Information contained in the tables pertaining to the Company's International segment has been presented at the year-end 2020 foreign currency exchange rates for all periods presented to remove the effects of foreign currency exchange rate changes between calendar years. The Company has presented development information for the Hardy business prospectively from the date of acquisition and is presented as a separate table within the Company's International segment. To the extent the Company enters into a commutation, the transaction is reported on a prospective basis. To the extent that the Company enters into a disposition, the effects of the disposition are reported on a retrospective basis by removing the balances associated with the disposed of business. The amounts reported for the cumulative number of reported claims include direct and assumed open and closed claims by accident year at the claimant level. The number excludes claim counts for claims within a policy deductible where the insured is responsible for payment of losses in the deductible layer. Claim count data for certain assumed reinsurance contracts is unavailable. IBNR includes reserves for incurred but not reported losses and expected development on case reserves. The Company does not establish case reserves for allocated loss adjusted expenses (ALAE), therefore ALAE reserves are also included in the estimate of IBNR. The following table presents further detail of the development recorded for the Specialty segment. Years ended December 31 (In millions) 2020 2019 2018 Pretax (favorable) unfavorable development: Medical Professional Liability $ 35 $ 75 $ 47 Other Professional Liability and Management Liability (15) (69) (127) Surety (69) (92) (70) Warranty (7) (15) (10) Other (5) 9 10 Total pretax (favorable) unfavorable development $ (61) $ (92) $ (150) 2020 Unfavorable development in medical professional liability was primarily due to higher than expected frequency of large losses in recent accident years and unfavorable outcomes on specific claims in older accident years. Favorable development in other professional liability and management liability was primarily due to lower than expected loss emergence in accident year 2017 and accident years prior to 2010. Favorable development in surety was due to lower than expected frequency and lack of systemic loss activity for accident years 2019 and prior. 2019 Unfavorable development in medical professional liability was primarily due to higher than expected severity in accident years 2016 through 2018 in the Company's aging services business, higher than expected severity in accident year 2013 in the Company's allied healthcare business, unfavorable outcomes on individual claims and higher than expected severity in accident year 2017 in the Company's dentists 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, lower than expected large claim losses in recent accident years in the Company's public company directors and officers liability (D&O) business and lower than expected loss adjustment expenses across accident years 2010 through 2018. Favorable development in surety was due to lower than expected frequency for accident years 2018 and prior. Favorable development in warranty was due to lower than expected paid loss emergence on vehicle products. 2018 Unfavorable development in medical professional liability was primarily due to higher than expected severity in accident years 2014 and 2017 in the Company's hospitals business. Additionally, there was higher than expected frequency and severity in aging services in accident years 2014 through 2017 combined, partially offset by lower than expected frequency in accident year 2015. Favorable development in other professional liability and management liability was primarily due to lower than expected claim frequency in recent accident years related to financial institutions and professional liability errors and omissions (E&O), favorable severity in accident years 2015 and prior related to professional liability E&O and favorable outcomes on individual claims in financial institutions in accident years 2013 and prior. Favorable development in surety was due to lower than expected loss emergence for accident years 2017 and prior. Specialty - Line of Business Composition The table below provides the line of business composition of the net liability for unpaid claim and claim adjustment expenses for the Specialty segment. As of December 31 (In millions) 2020 Net liability for unpaid claim and claim adjustment expenses: Medical Professional Liability $ 1,520 Other Professional Liability and Management Liability 2,850 Surety 385 Warranty 34 Other 109 Total net liability for unpaid claim and claim adjustment expenses $ 4,898 Specialty - Medical Professional Liability Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year As of December 31, 2020 (In millions, except reported claims data) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 (1) 2020 IBNR Cumulative Number of Claims Accident Year 2011 $ 429 $ 437 $ 443 $ 468 $ 439 $ 434 $ 437 $ 437 $ 439 $ 439 $ 4 16,537 2012 464 469 508 498 493 484 493 499 497 5 17,739 2013 462 479 500 513 525 535 545 531 11 19,537 2014 450 489 537 530 535 529 527 11 19,770 2015 433 499 510 494 488 510 29 18,122 2016 427 487 485 499 508 27 15,998 2017 412 449 458 460 62 15,008 2018 404 429 431 98 14,531 2019 430 445 232 13,045 2020 477 426 7,787 Total $ 4,825 $ 905 Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year (In millions) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 (1) 2020 Accident Year 2011 $ 17 $ 109 $ 208 $ 295 $ 347 $ 375 $ 398 $ 409 $ 414 $ 432 2012 14 117 221 323 388 427 457 479 482 2013 17 119 255 355 414 462 495 508 2014 23 136 258 359 417 472 489 2015 22 101 230 313 384 420 2016 18 121 246 339 401 2017 19 107 235 308 2018 21 115 211 2019 17 91 2020 11 Total $ 3,353 Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 1,472 Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2011 19 Liability for unallocated claim adjustment expenses for accident years presented 29 Total net liability for unpaid claim and claim adjustment expenses $ 1,520 Net strengthening (releases) of prior accident year reserves is presented in the following table. For the years ended December 31 Calendar Year (In millions) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 (1) 2020 Total Accident Year 2011 $ 8 $ 6 $ 25 $ (29) $ (5) $ 3 $ — $ 2 $ — $ 10 2012 5 39 (10) (5) (9) 9 6 (2) 33 2013 17 21 13 12 10 10 (14) 69 2014 39 48 (7) 5 (6) (2) 77 2015 66 11 (16) (6) 22 77 2016 60 (2) 14 9 81 2017 37 9 2 48 2018 25 2 27 2019 15 15 Total net development for the accident years presented above 43 54 32 Total net development for accident years prior to 2011 5 19 3 Total unallocated claim adjustment expense development (1) 2 — Total $ 47 $ 75 $ 35 (1) Data presented for these calendar years is required supplemental information, which is unaudited. Specialty - Other Professional Liability and Management Liability Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year As of December 31, 2020 (In millions, except reported claims data) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 (1) 2020 IBNR Cumulative Number of Claims Accident Year 2011 $ 880 $ 908 $ 934 $ 949 $ 944 $ 911 $ 899 $ 888 $ 885 $ 883 $ 17 18,745 2012 923 909 887 878 840 846 833 831 850 25 18,504 2013 884 894 926 885 866 863 850 846 36 17,939 2014 878 898 885 831 835 854 845 57 17,568 2015 888 892 877 832 807 813 74 17,417 2016 901 900 900 904 907 120 17,946 2017 847 845 813 791 220 18,118 2018 850 864 869 276 19,789 2019 837 845 447 19,157 2020 930 777 16,557 Total $ 8,579 $ 2,049 Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year (In millions) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 (1) 2020 Accident Year 2011 $ 71 $ 314 $ 503 $ 605 $ 683 $ 726 $ 781 $ 796 $ 828 $ 851 2012 56 248 400 573 651 711 755 792 812 2013 54 249 447 618 702 754 771 779 2014 51 223 392 515 647 707 743 2015 60 234 404 542 612 677 2016 64 248 466 625 701 2017 57 222 394 498 2018 54 282 473 2019 64 263 2020 67 Total $ 5,864 Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 2,715 Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2011 79 Liability for unallocated claim adjustment expenses for accident years presented 56 Total net liability for unpaid claim and claim adjustment expenses $ 2,850 Net strengthening (releases) of prior accident year reserves is presented in the following table. For the years ended December 31 Calendar Year (In millions) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 (1) 2020 Total Accident Year 2011 $ 28 $ 26 $ 15 $ (5) $ (33) $ (12) $ (11) $ (3) $ (2) $ 3 2012 (14) (22) (9) (38) 6 (13) (2) 19 (73) 2013 10 32 (41) (19) (3) (13) (4) (38) 2014 20 (13) (54) 4 19 (9) (33) 2015 4 (15) (45) (25) 6 (75) 2016 (1) — 4 3 6 2017 (2) (32) (22) (56) 2018 14 5 19 2019 8 8 Total net development for the accident years presented above (70) (38) 4 Total net development for accident years prior to 2011 (50) (17) (19) Total unallocated claim adjustment expense development (7) (14) — Total $ (127) $ (69) $ (15) (1) Data presented for these calendar years is required supplemental information, which is unaudited. Specialty - Surety Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year As of December 31, 2020 (In millions, except reported claims data) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 (1) 2020 IBNR Cumulative Number of Claims Accident Year 2011 $ 120 $ 121 $ 116 $ 87 $ 75 $ 70 $ 66 $ 62 $ 62 $ 62 $ 1 5,828 2012 120 122 98 70 52 45 39 38 37 1 5,577 2013 120 121 115 106 91 87 83 82 1 5,078 2014 123 124 94 69 60 45 45 1 5,102 2015 131 131 104 79 63 58 6 5,026 2016 124 124 109 84 67 12 5,469 2017 120 115 103 84 31 5,706 2018 114 108 91 48 5,920 2019 119 112 67 5,344 2020 128 122 2,527 Total $ 766 $ 290 Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year (In millions) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 (1) 2020 Accident Year 2011 $ 19 $ 42 $ 55 $ 58 $ 60 $ 60 $ 56 $ 57 $ 57 $ 57 2012 5 32 34 35 35 36 37 37 36 2013 16 40 69 78 78 78 77 78 2014 7 30 38 36 38 38 39 2015 7 26 38 40 42 44 2016 5 37 45 45 43 2017 23 37 41 46 2018 5 25 34 2019 12 34 2020 4 Total $ 415 Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 351 Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2011 14 Liability for unallocated claim adjustment expenses for accident years presented 20 Total net liability for unpaid claim and claim adjustment expenses $ 385 Net strengthening (releases) of prior accident year reserves is presented in the following table. For the years ended December 31 Calendar Year (In millions) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 (1) 2020 Total Accident Year 2011 $ 1 $ (5) $ (29) $ (12) $ (5) $ (4) $ (4) $ — $ — $ (58) 2012 2 (24) (28) (18) (7) (6) (1) (1) (83) 2013 1 (6) (9) (15) (4) (4) (1) (38) 2014 1 (30) (25) (9) (15) — (78) 2015 — (27) (25) (16) (5) (73) 2016 — (15) (25) (17) (57) 2017 (5) (12) (19) (36) 2018 (6) (17) (23) 2019 (7) (7) Total net development for the accident years presented above (68) (79) (67) Total net development for accident years prior to 2011 (2) (3) (2) Total unallocated claim adjustment expense development — (10) — Total $ (70) $ (92) $ (69) (1) Data presented for these calendar years is required supplemental information, which is unaudited. The following table presents further detail of the development recorded for the Commercial segment. Years ended December 31 (In millions) 2020 2019 2018 Pretax (favorable) unfavorable development: Commercial Auto $ 33 $ (25) $ 1 General Liability 65 54 32 Workers' Compensation (96) (13) (32) Property and Other 41 (18) (26) Total pretax (favorable) unfavorable development $ 43 $ (2) $ (25) 2020 Unfavorable development in commercial auto was due to higher than expected claim severity in the Company's middle market and construction business in recent accident years. Unfavorable development in general liability was driven by higher than expected emergence in mass tort exposures, primarily due to New York reviver statute-related claims from accident years prior to 2010, increased bodily injury severities in accident years 2012 through 2016 and higher than expected frequency and severity in the Company’s umbrella business in accident years 2015 through 2019. Favorable development in workers’ compensation was due to favorable medical trends driving lower than expected severity in multiple accident years. Unfavorable development in property and other was primarily due to higher than expected large loss activity in accident year 2019 in the Company's middle market, national accounts and marine business units. 2019 Favorable development in commercial auto was primarily due to continued lower than expected severity across accident years 2015 and prior and a decline in bodily injury frequency in accident year 2018. Unfavorable development in general liability was primarily due to higher than expected emergence in mass tort exposures, primarily from accident years 2016, 2015 and prior to 2010. Favorable development in workers’ compensation was due to favorable medical trends driving lower than expected severity in accident years 2012 through 2018. Favorable development in property and other was primarily driven by lower than expected claim severity related to catastrophe events in accident years 2017 and 2018. 2018 Unfavorable development in general liability was driven by higher than expected claim severity in unsupported umbrella in accident years 2013 through 2016. Favorable development in workers’ compensation was driven by lower frequency and severity experience and favorable impacts from California reforms. Favorable development in property and other was driven by lower than expected claim severity in catastrophes in accident year 2017. Commercial - Line of Business Composition The table below provides the line of business composition of the net liability for unpaid claim and claim adjustment expenses for the Commercial segment. As of December 31 (In millions) 2020 Net Claim and claim adjustment expenses: Commercial Auto $ 502 General Liability 3,305 Workers' Compensation 3,872 Property and Other 525 Total net liability for claim and claim adjustment expenses $ 8,204 Commercial - Commercial Auto Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year As of December 31, 2020 (In millions, except reported claims data) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 (1) 2020 IBNR Cumulative Number of Claims Accident Year 2011 $ 268 $ 281 $ 288 $ 302 $ 300 $ 294 $ 294 $ 294 $ 291 $ 292 $ — 47,907 2012 275 289 299 303 307 299 299 297 296 2 46,288 2013 246 265 265 249 245 245 241 241 2 39,429 2014 234 223 212 205 205 201 201 1 33,625 2015 201 199 190 190 183 181 3 30,426 2016 198 186 186 186 190 2 30,430 2017 199 198 200 221 7 30,913 2018 229 227 227 10 34,225 2019 257 266 48 36,779 2020 310 187 24,427 Total $ 2,425 $ 262 Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year (In millions) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 (1) 2020 Accident Year 2011 $ 79 $ 145 $ 199 $ 248 $ 274 $ 284 $ 287 $ 289 $ 289 $ 290 2012 78 160 220 259 282 285 290 291 291 2013 74 135 168 200 225 234 238 239 2014 64 102 137 166 187 196 198 2015 52 96 130 153 172 175 2016 52 93 126 154 175 2017 58 107 150 178 2018 66 128 175 2019 77 147 2020 71 Total $ 1,939 Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 486 Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2011 2 Liability for unallocated claim adjustment expenses for accident years presented 14 Total net liability for unpaid claim and claim adjustment expenses $ 502 Net strengthening (releases) of prior accident year reserves is presented in the following table. For the years ended December 31 Calendar Year (In millions) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 (1) 2020 Total Accident Year 2011 $ 13 $ 7 $ 14 $ (2) $ (6) $ — $ — $ (3) $ 1 $ 24 2012 14 10 4 4 (8) — (2) (1) 21 2013 19 — (16) (4) — (4) — (5) 2014 (11) (11) (7) — (4) — (33) 2015 (2) (9) — (7) (2) (20) 2016 (12) — — 4 (8) 2017 (1) 2 21 22 2018 (2) — (2) 2019 9 9 Total net development for the accident years presented above (1) (20) 32 Total net development for accident years prior to 2011 1 (4) 1 Total unallocated claim adjustment expense development 1 (1) — Total $ 1 $ (25) $ 33 (1) Data presented for these calendar years is required supplemental information, which is unaudited. Commercial - General Liability Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year As of December 31, 2020 (In millions, except reported claims data) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 (1) 2020 IBNR Cumulative Number of Claims Accident Year 2011 $ 591 $ 589 $ 631 $ 677 $ 676 $ 681 $ 670 $ 669 $ 667 $ 667 $ 21 39,405 2012 587 611 639 636 619 635 635 630 632 24 35,276 2013 650 655 650 655 613 623 620 623 27 33,649 2014 653 658 654 631 635 658 659 44 27,972 2015 581 576 574 589 600 602 38 24,005 2016 623 659 667 671 673 104 24,215 2017 632 632 632 634 136 21,781 2018 653 644 646 302 19,234 2019 680 682 453 17,294 2020 723 640 9,593 Total $ 6,541 $ 1,789 Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year (In millions) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 201 |
Legal Proceedings, Contingencie
Legal Proceedings, Contingencies and Guarantees | 12 Months Ended |
Dec. 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 routine litigation incidental to its business, which, based on the facts and circumstances currently known, are not material to the Company's results of operations or financial position. General Liability Premium Rate Adjustment Contingency The Company recently became aware of discrepancies in the experience rating calculation of certain general liability policies. These calculation discrepancies resulted in certain policyholders being undercharged while others were overcharged. The Company has made corrections to its systems and processes to address the issue. The Company recorded a charge which reduced earned premium by $14 million in anticipation of voluntarily issuing premium refunds in connection with policies written from January 1, 2018 through December 31, 2020 which were overcharged. The Company has contacted regulators in states with a significant anticipated volume of premium refunds. Fines or penalties related to the foregoing are reasonably possible, but the amount of such fines, if any, cannot be estimated at this time. Guarantees As of December 31, 2020 and 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 December 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. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2020 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | Reinsurance The Company cedes insurance to reinsurers to limit its maximum loss, provide greater diversification of risk, minimize exposures on larger risks and to exit certain lines of business. The ceding of insurance does not discharge the primary liability of the Company. A credit exposure exists with respect to reinsurance ceded to the extent that any reinsurer is unable to meet its obligations. A collectibility exposure also exists to the extent that the reinsurer disputes the liabilities assumed under reinsurance agreements. Property and casualty reinsurance coverages are tailored to the specific risk characteristics of each product line and the Company's retained amount varies by type of coverage. Reinsurance contracts are purchased to protect specific lines of business such as property and workers' compensation. Corporate catastrophe reinsurance is also purchased for property and workers' compensation exposure. The Company also utilizes facultative reinsurance in certain lines. In addition, the Company assumes reinsurance primarily through Hardy and as a member of various reinsurance pools and associations. The following table presents the amounts receivable from reinsurers. December 31 (In millions) 2020 2019 Reinsurance receivables related to insurance reserves: Ceded claim and claim adjustment expenses $ 4,005 $ 3,835 Ceded future policy benefits 263 226 Reinsurance receivables related to paid losses 210 143 Reinsurance receivables 4,478 4,204 Allowance for uncollectible reinsurance (21) (25) Reinsurance receivables, net of allowance for uncollectible reinsurance $ 4,457 $ 4,179 The Company has established an allowance for uncollectible voluntary reinsurance receivables which relates to both amounts already billed on ceded paid losses as well as ceded reserves that will be billed when losses are paid in the future. The following table summarizes the outstanding amount of voluntary reinsurance receivables, gross of any collateral arrangements, by financial strength rating. (In millions) December 31, 2020 A- to A++ $ 2,820 B- to B++ 904 Insolvent 3 Total voluntary reinsurance outstanding balance (1) $ 3,727 (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 to the Consolidated Financial Statements for information regarding the LPT. The Company has also excluded receivables from involuntary pools. The Company attempts to mitigate its credit risk related to reinsurance by entering into reinsurance arrangements with reinsurers that have credit ratings above certain levels and by obtaining collateral. On a limited basis, the Company may enter into reinsurance agreements with reinsurers that are not rated, primarily captive reinsurers. Receivables from captive reinsurers are backed by collateral arrangements and comprise the majority of the voluntary reinsurance receivables within the B- to B++ rating distribution in the table above. The primary methods of obtaining collateral are through reinsurance trusts, letters of credit and funds withheld balances. Such collateral, limited by the balance of open recoverables, was approximately $3.3 billion and $3.2 billion as of December 31, 2020 and 2019. The Company's largest recoverables from a single reinsurer as of December 31, 2020, including ceded unearned premium reserves, were approximately $1.9 billion from subsidiaries of the Berkshire Hathaway Insurance Group, $377 million from the Gateway Rivers Insurance Company and $314 million from the Palo Verde Insurance Company. These amounts are substantially collateralized or otherwise secured. The recoverable from subsidiaries of the Berkshire Hathaway Insurance Group includes amounts related to third-party reinsurance for which NICO has assumed the credit risk under the terms of the LPT as discussed in Note E to the Consolidated Financial Statements. The effects of reinsurance on earned premiums and written premiums are presented in the following tables. (In millions) Direct Assumed Ceded Net Assumed/ 2020 Earned Premiums Property and casualty $ 11,547 $ 238 $ 4,640 $ 7,145 3.3 % Long term care 454 50 — 504 9.9 % Total earned premiums $ 12,001 $ 288 $ 4,640 $ 7,649 3.8 % 2019 Earned Premiums Property and casualty $ 11,021 $ 288 $ 4,401 $ 6,908 4.2 % Long term care 470 50 — 520 9.6 % Total earned premiums $ 11,491 $ 338 $ 4,401 $ 7,428 4.6 % 2018 Earned Premiums Property and casualty $ 10,857 $ 305 $ 4,380 $ 6,782 4.5 % Long term care 480 50 — 530 9.4 % Total earned premiums $ 11,337 $ 355 $ 4,380 $ 7,312 4.9 % (In millions) Direct Assumed Ceded Net Assumed/ 2020 Written Premiums Property and casualty $ 12,168 $ 229 $ 4,832 $ 7,565 3.0 % Long term care 444 50 — 494 10.1 % Total written premiums $ 12,612 $ 279 $ 4,832 $ 8,059 3.5 % 2019 Written Premiums Property and casualty $ 11,421 $ 281 $ 4,569 $ 7,133 3.9 % Long term care 473 50 — 523 9.6 % Total written premiums $ 11,894 $ 331 $ 4,569 $ 7,656 4.3 % 2018 Written Premiums Property and casualty $ 11,094 $ 310 $ 4,583 $ 6,821 4.5 % Long term care 474 50 — 524 9.5 % Total written premiums $ 11,568 $ 360 $ 4,583 $ 7,345 4.9 % Included in the direct and ceded earned premiums for the years ended December 31, 2020, 2019 and 2018 are $3,543 million, $3,578 million and $3,740 million related to property business that is 100% reinsured under a significant third-party captive program. The third-party captives that participate in this program are affiliated with the non-insurance company policyholders, therefore this program provides a means for the policyholders to self-insure this property risk. The Company receives and retains a ceding commission. Long term care premiums are from long-duration contracts; property and casualty premiums are from short-duration contracts. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt is composed of the following long term obligations. December 31 (In millions) 2020 2019 Senior notes of CNAF: 5.750%, face amount of $400, due August 15, 2021 (1) $ — $ 399 3.950%, face amount of $550, due May 15, 2024 548 548 4.500%, face amount of $500, due March 1, 2026 499 498 3.450%, face amount of $500, due August 15, 2027 496 496 3.900%, face amount of $500, due May 1, 2029 496 496 2.050%, face amount of $500, due August 15, 2030 495 — Debenture of CNAF, 7.250%, face amount of $243, due November 15, 2023 242 242 Total $ 2,776 $ 2,679 (1) The Company redeemed these notes in the third quarter of 2020. CCC is a member of the Federal Home Loan Bank of Chicago (FHLBC). FHLBC membership provides participants with access to additional sources of liquidity through various programs and services. As a requirement of membership in the FHLBC, CCC held $5 million of FHLBC stock as of December 31, 2020 giving it immediate access to approximately $111 million of additional liquidity. As of December 31, 2020 and 2019, CCC had no outstanding borrowings from the FHLBC. During 2019, the Company amended and restated its existing credit agreement with a syndicate of banks. The agreement provides a five-year $250 million senior unsecured revolving credit facility which is intended to be used for general corporate purposes. At the Company's election, the commitments under the agreement may be increased from time to time up to an additional aggregate amount of $100 million, and two one-year extensions are available prior to any anniversary of the closing date, each subject to applicable consents. Under the agreement, the Company is required to pay a facility fee which will adjust automatically in the event of a change in the Company's financial ratings. The agreement includes several covenants, including maintenance of a minimum consolidated net worth and a specified ratio of consolidated indebtedness to consolidated total capitalization. The minimum consolidated net worth, as defined, at December 31, 2020, was $8.7 billion. As of December 31, 2020 and 2019, the Company had no outstanding borrowings under the credit agreement. The Company's debt obligations contain customary covenants for investment grade issuers. The Company was in compliance with all covenants as of and for the years ended December 31, 2020 and 2019. The combined aggregate maturities for debt as of December 31, 2020 are presented in the following table. (In millions) 2021 $ — 2022 — 2023 243 2024 550 2025 — Thereafter 2,000 Less: discount (17) Total $ 2,776 |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans Pension and Postretirement Health Care Benefit Plans CNA sponsors noncontributory defined benefit pension plans, primarily through the CNA Retirement Plan, covering certain eligible employees. These plans are closed to new entrants. CNA's funding policy for defined benefit pension plans is to make contributions in accordance with applicable governmental regulatory requirements with consideration of the funded status of the plans. Effective January 1, 2000, the CNA Retirement Plan was closed to new participants. Existing participants at that time were given a choice to either continue to accrue benefits under the CNA Retirement Plan or to cease accruals effective December 31, 1999. Employees who chose to continue to accrue benefits under the plan received benefits in accordance with plan provisions through June 30, 2015 as discussed further below. Participants who elected to cease accruals effective December 31, 1999 received the present value of their accrued benefit in an accrued pension account that is credited with interest based on the annual rate of interest on 30-year Treasury securities. These employees also receive certain enhanced employer contributions in the CNA 401k Plan. Effective June 30, 2015, the Company eliminated future benefit accruals associated with the CNA Retirement Plan. Participants continuing to accrue benefits under the CNA Retirement Plan at that time are entitled to an accrued benefit payable based on their eligible compensation and accrued service through June 30, 2015. These affected participants now also receive enhanced employer contributions in the CNA 401k Plan similar to participants who elected to cease accruals effective December 31, 1999. Employees who elected to cease accruals effective December 31, 1999 were not affected by this curtailment. CNA provides certain postretirement health care benefits to eligible retired employees, their covered dependents and their beneficiaries primarily through the CNA Health and Group Benefits Program. These postretirement benefits have largely been eliminated for active employees. The following table presents a reconciliation of benefit obligations and plan assets. Pension Benefits Postretirement Benefits (In millions) 2020 2019 2020 2019 Benefit obligation as of January 1 $ 2,661 $ 2,466 $ 8 $ 9 Changes in benefit obligation: Interest cost 80 100 — — Participants' contributions — — 2 4 Actuarial (gain) loss 205 261 2 1 Benefits paid (173) (169) (5) (6) Foreign currency translation and other 3 3 — — Settlements (7) — — — Benefit obligation as of December 31 2,769 2,661 7 8 Fair value of plan assets as of January 1 2,285 2,025 — — Change in plan assets: Actual return on plan assets 295 292 — — Company contributions 16 134 3 2 Participants' contributions — — 2 4 Benefits paid (173) (169) (5) (6) Foreign currency translation and other 4 3 — — Settlements (7) — — — Fair value of plan assets as of December 31 2,420 2,285 — — Funded status $ (349) $ (376) $ (7) $ (8) Amounts recognized on the Consolidated Balance Sheets as of December 31: Other assets $ 2 $ 5 $ — $ — Other liabilities (351) (381) (7) (8) Net amount recognized $ (349) $ (376) $ (7) $ (8) Amounts recognized in Accumulated other comprehensive income, not yet recognized in net periodic cost (benefit): Net actuarial (gain) loss $ 1,073 $ 1,056 $ — $ (2) Net amount recognized $ 1,073 $ 1,056 $ — $ (2) The accumulated benefit obligation for all defined benefit pension plans was $2,769 million and $2,661 million as of December 31, 2020 and 2019. Changes for years ended December 31, 2020 and 2019 include actuarial losses of $205 million and $261 million, respectively, primarily driven by changes in the discount rate used to determine defined benefit pension obligations. The components of net periodic pension cost (benefit) are presented in the following table. Years ended December 31 (In millions) 2020 2019 2018 Net periodic pension cost (benefit) Interest cost on projected benefit obligation $ 80 $ 100 $ 93 Expected return on plan assets (155) (142) (159) Amortization of net actuarial (gain) loss 45 39 37 Settlement loss 3 — 6 Total net periodic pension cost (benefit) $ (27) $ (3) $ (23) For the years ended December 31, 2020, 2019 and 2018, the Company recognized $8 million, $1 million and $8 million of non-service benefit in Insurance claims and policyholders' benefits and $19 million, $2 million and $15 million of non-service benefit in Other operating expenses related to net periodic pension benefit. The amounts recognized in Other comprehensive income are presented in the following table. Years ended December 31 (In millions) 2020 2019 2018 Pension and postretirement benefits Amounts arising during the period $ (67) $ (112) $ (41) Settlement 3 — 6 Reclassification adjustment relating to prior service credit — — (2) Reclassification adjustment relating to actuarial loss 45 39 36 Total increase (decrease) in Other comprehensive income $ (19) $ (73) $ (1) Actuarial assumptions used for the CNA Retirement Plan and CNA Health and Group Benefits Program to determine benefit obligations are presented in the following table. The interest crediting rate is the weighted average interest rate applied to the individual pension balances for employees who elected to cease accruals effective December 31, 1999. December 31 2020 2019 Pension benefits Discount rate 2.350 % 3.150 % Interest crediting rate 3.000 5.000 Postretirement benefits Discount rate 1.600 % 2.300 % Actuarial assumptions used for the CNA Retirement Plan and CNA Health and Group Benefits Program to determine net cost or benefit are presented in the following table. Years ended December 31 2020 2019 2018 Pension benefits Discount rate 3.150 % 4.250 % 3.550 % Expected long term rate of return 7.250 7.500 7.500 Interest crediting rate 5.000 5.000 5.000 Postretirement benefits Discount rate 2.300 % 3.550 % 2.750 % To determine the discount rate assumption as of the year-end measurement date for the CNA Retirement Plan and CNA Health and Group Benefits Program, the Company considered the estimated timing of plan benefit payments and available yields on high quality fixed income debt securities. For this purpose, high quality is considered a rating of Aa or better by Moody's Investors Service, Inc. (Moody's) or a rating of AA or better from Standard & Poor's (S&P). The Company reviewed several yield curves constructed using the cash flow characteristics of the plans as well as bond indices as of the measurement date. The trend of those data points was also considered. In determining the expected long term rate of return on plan assets assumption for the CNA Retirement Plan, CNA considered the historical performance of the benefit plan investment portfolio as well as long term market return expectations based on the investment mix of the portfolio and the expected investment horizon. The CNA Health and Group Benefits Program has limited its share of the health care trend rate to a cost-of-living adjustment of 4% per year. For all participants, the employer subsidy on health care costs will not increase by more than 4% per year. As a result, the assumed health care cost trend rate used in measuring the accumulated postretirement benefit obligation for the CNA Health and Group Benefits Program was 4% per year in 2020, 2019 and 2018. CNA employs a total return approach whereby a mix of equity, limited partnerships and fixed maturity securities are used to maximize the long term return of retirement plan assets for a prudent level of risk and to manage cash flows according to plan requirements. The target allocation of plan assets is 40% to 60% invested in equity securities and limited partnerships, with the remainder primarily invested in fixed maturity securities. Alternative investments, including limited partnerships, are used to enhance risk adjusted long term returns while improving portfolio diversification. The intent of this strategy is to minimize the Company's expense related to funding the plan by generating investment returns that exceed the growth of the plan liabilities over the long run. Risk tolerance is established after careful consideration of the plan liabilities, plan funded status and corporate financial conditions. As of December 31, 2020, the Plan had committed approximately $190 million to future capital calls from various third-party limited partnership investments in exchange for an ownership interest in the related partnerships. Derivatives may be used to gain market exposure in an efficient and timely manner. Investment risk is measured and monitored on an ongoing basis through annual liability measurements, periodic asset/liability studies and quarterly investment portfolio reviews. Pension plan assets measured at fair value on a recurring basis as well as cash are presented in the following tables. December 31, 2020 (In millions) Level 1 Level 2 Level 3 Total Assets Fixed maturity securities: Corporate bonds and other $ — $ 643 $ 9 $ 652 States, municipalities and political subdivisions — 32 — 32 Asset-backed — 98 — 98 Total fixed maturity securities — 773 9 782 Equity securities 666 137 — 803 Short term investments 20 38 — 58 Other assets — 8 — 8 Cash 13 — — 13 Total assets measured at fair value $ 699 $ 956 $ 9 1,664 Total limited partnerships measured at net asset value (1) 756 Total $ 2,420 December 31, 2019 (In millions) Level 1 Level 2 Level 3 Total Assets Fixed maturity securities: Corporate bonds and other $ — $ 587 $ 10 $ 597 States, municipalities and political subdivisions — 51 — 51 Asset-backed — 154 — 154 Total fixed maturity securities — 792 10 802 Equity securities 458 128 — 586 Short term investments 55 7 — 62 Other assets — 9 — 9 Cash 13 — — 13 Total assets measured at fair value $ 526 $ 936 $ 10 1,472 Total limited partnerships measured at net asset value (1) 813 Total $ 2,285 (1) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table for these investments are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Plan's Statement of Financial Position. The limited partnership investments held within the plan are recorded at fair value, which represents the plan's share of net asset value of each partnership, as determined by each limited partnership's general partner. Limited partnerships comprising 75% and 79% of the carrying value as of December 31, 2020 and 2019 employ hedge fund strategies that generate returns through investing in marketable securities in the public fixed income and equity markets and the remainder were primarily invested in private debt and equity. Within hedge fund strategies, approximately 69% were equity related, 27% pursued a multi-strategy approach and 4% were focused on distressed investments as of December 31, 2020. For a discussion of the fair value levels and the valuation methodologies used to measure fixed maturity securities, equities, derivatives and short term investments, see Note C to the Consolidated Financial Statements. The table below presents the estimated future minimum benefit payments to participants as of December 31, 2020. (In millions) Pension Benefits Postretirement Benefits 2021 $ 179 $ 1 2022 180 1 2023 180 1 2024 177 1 2025 176 — 2026-2030 823 2 In 2021, CNA expects to contribute $6 million to its pension plans and $1 million to its postretirement health care benefit plans. Savings Plans CNA sponsors savings plans, which are generally contributory plans that allow most employees to contribute a maximum of 50% of their eligible compensation, subject to certain limitations prescribed by the IRS. Effective January 1, 2020, the Company adopted amendments to its primary savings plan which impacted the Company contribution design. Under the current plan, the Company contributes matching amounts to participants amounting to 100% of the first 6% of eligible compensation contributed by the employee. In addition, eligible employees also receive a Company contribution of 5% of their eligible compensation, referred to as a basic contribution. Company contributions vest ratably over participants first five years of service. Prior to January 1, 2020, the Company match was limited to 70% (35% in the first year of employment) of the first 6% of eligible compensation contributed by the employee. The basic contribution was either 3% or 5%, depending on the age of the employee. Further, employees previously were eligible to receive additional discretionary contributions of up to 2% of eligible compensation and an additional Company match of up to 80% of the first 6% of eligible compensation contributed by the employee. These additional contributions were made at the discretion of management. Benefit expense for the Company's savings plans was $70 million, $71 million and $71 million for the years ended December 31, 2020, 2019 and 2018. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The current CNAF Incentive Compensation Plan (the Plan) authorizes the grant of stock-based compensation to certain management personnel for up to 16 million shares of CNAF common stock. The Plan currently provides for awards of stock options, stock appreciation rights (SARs), restricted shares, restricted stock units (RSUs), performance-based RSUs and performance share units. The number of shares available for the granting of stock-based compensation under the Plan as of December 31, 2020 was approximately 5.9 million. In 2016, CNA adopted the Annual Performance Share Plan (PSP). The PSP provides officers with an opportunity to earn an award based upon attainment of specific performance goals achieved over a one-year performance period. Awards are granted at the beginning of each performance year and are generally subject to a two-year cliff vesting period after the Company’s annual performance has been determined. Prior to the PSP, CNA issued performance share units under the Long Term Incentive Plan (LTI Plan). The LTI Plan had a three-year performance period and was settled during 2018. In both plans, the performance share units become payable within a range of 0% to 200% of the number of performance share units initially granted. Related to the transition to the PSP, CNA granted Special Supplemental Equity Awards (SSE) in 2016, which consisted of restricted stock units that fully vested in 2018. Additionally, the Company may grant RSUs under the Plan in certain circumstances. These awards generally vest over a one Stock-based compensation that is not fully vested prior to termination is generally forfeited upon termination, except in cases of retirement, death or disability, and as otherwise provided by contractual obligations. The fair value of stock-based compensation awards is based on the market value of the Company's common stock as of the date of grant, except for awards made to foreign participants, which is based on the current market value of the Company’s common stock. Payments made under the PSP and SSE are made entirely in shares of common stock granted under the Plan, except for awards made to foreign participants, which are paid in cash. The Company recorded stock-based compensation expense related to the Plan of $37 million, $34 million and $32 million for the years ended December 31, 2020, 2019 and 2018. The related income tax benefit recognized was $6 million, $8 million and $8 million for the years ended December 31, 2020, 2019 and 2018 . The compensation cost not yet recognized was $39 million, and the weighted average period over which it is expected to be recognized is 1.8 years as of December 31, 2020. The total fair value of RSUs and performance shares that vested during the years ended December 31, 2020, 2019 and 2018 was $35 million, $31 million and $16 million, respectively. The weighted average grant date fair value for RSUs and performance shares granted during the years ended December 31, 2020, 2019 and 2018 was $34.36, $43.86 and $51.64, respectively. The following table presents activity for non-vested RSUs and performance share units under the Plan in 2020. Number of Awards Weighted Average Grant Date Fair Value Balance as of January 1, 2020 2,115,186 $ 46.25 Awards granted 1,316,407 34.36 Awards vested (806,589) 44.31 Awards forfeited, canceled or expired (248,760) 42.57 Performance-based adjustment 62,897 34.45 Balance as of December 31, 2020 2,439,141 40.56 |
Other Intangible Assets
Other Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Intangible Assets, Gross (Excluding Goodwill) [Abstract] | |
Other Intangible Assets | Other Intangible Assets Other intangible assets are presented in the following table. December 31 2020 2019 (In millions) Economic Useful Life Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Finite-lived intangible assets: Trade name 8 years $ 7 $ 7 $ 7 $ 6 Distribution channel 15 years 11 6 11 5 Total finite-lived intangible assets 18 13 18 11 Indefinite-lived intangible assets: Syndicate capacity 48 46 Agency force 16 16 Total indefinite-lived intangible assets 64 62 Total other intangible assets $ 82 $ 13 $ 80 $ 11 The Company's other intangible assets primarily relate to the purchase of Hardy, and the amortization of the finite-lived intangible assets is included in the Statement of Operations for the International segment. Amortization expense of $1 million was included in Other operating expenses for each of the years ended December 31, 2020, 2019 and 2018. The gross carrying amounts and accumulated amortization in the table above may change from period to period as a result of foreign currency translation. Estimated future annual amortization expense for other intangible assets is $1 million in each of the years 2021 through 2025. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases Total lease expense was $57 million and $55 million for the years ended December 31, 2020 and 2019, which includes operating lease expense of $38 million and $37 million and variable lease expense of $19 million and $18 million for the years ended December 31, 2020 and 2019, respectively. Prior to the adoption of the new leasing standard, lease expense for the year ended December 31, 2018 was $62 million. Cash paid for amounts included in operating lease liabilities was $41 million and $34 million for the years ended December 31, 2020 and 2019. Operating lease ROU assets obtained in exchange for lease obligations were $6 million and $12 million for the years ended December 31, 2020 and 2019. The following table presents operating lease ROU assets and lease liabilities. (In millions) December 31, 2020 December 31, 2019 Operating lease ROU assets $ 199 $ 220 Operating lease liabilities 279 301 The following table presents the maturities of operating lease liabilities (In millions) December 31, 2020 2021 $ 44 2022 41 2023 36 2024 29 2025 24 Thereafter 163 Total lease payments 337 Less: Discount (58) Total operating lease liabilities $ 279 The following table presents the weighted average remaining lease term for operating leases and weighted average discount rate used in calculating operating lease ROU assets. December 31, 2020 December 31, 2019 Weighted average remaining lease term 10.3 years 10.8 years Weighted average discount rate 3.4 % 3.4 % |
Stockholders' Equity and Statut
Stockholders' Equity and Statutory Accounting Practices | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity and Statutory Accounting Practices [Abstract] | |
Stockholders' Equity And Statutory Accounting Practices | Stockholders’ Equity and Statutory Accounting Practices Common Stock Dividends There are no restrictions on the retained earnings or net income of CNAF with regard to payment of dividends to its stockholders. However, given the holding company nature of CNAF, its ability to pay a dividend is significantly dependent on the receipt of dividends from its subsidiaries, particularly CCC, which directly or indirectly owns the vast majority of all significant subsidiaries. See the Statutory Accounting Practices section below for a discussion of the regulatory restrictions on CCC's availability to pay dividends. CNAF's ability to pay dividends may be indirectly limited by the minimum consolidated net worth covenant in the Company's line of credit agreement. See Note H to the Consolidated Financial Statements for further discussion of the Company's debt obligations. Statutory Accounting Practices CNAF’s insurance subsidiaries are domiciled in various jurisdictions. These subsidiaries prepare statutory financial statements in accordance with accounting practices prescribed or permitted by the respective jurisdictions’ insurance regulators. Domestic prescribed statutory accounting practices are set forth in a variety of publications of the National Association of Insurance Commissioners (NAIC) as well as state laws, regulations and general administrative rules. These statutory accounting principles vary in certain respects from GAAP. In converting from statutory accounting principles to GAAP, the more significant adjustments include deferral of policy acquisition costs and the inclusion of net unrealized holding gains or losses in stockholders’ equity relating to certain fixed maturity securities. The Company has a prescribed practice as it relates to the accounting under Statement of Statutory Accounting Principles No. 62R (SSAP No. 62R), Property and Casualty Reinsurance , paragraphs 88 and 89 in conjunction with the 2010 LPT with NICO which is further discussed in Note E to the Consolidated Financial Statements. The prescribed practice allows the Company to aggregate all third party A&EP reinsurance balances administered by NICO in Schedule F and to utilize the LPT as collateral for the underlying third party reinsurance balances for purposes of calculating the statutory reinsurance penalty. This prescribed practice increased statutory capital and surplus by $91 million at December 31, 2020 and 2019. The payment of dividends by CNAF's insurance subsidiaries without prior approval of the insurance department of each subsidiary’s domiciliary jurisdiction is generally limited by formula. Dividends in excess of these amounts are subject to prior approval by the respective insurance regulator. Dividends from CCC are subject to the insurance holding company laws of the State of Illinois, the domiciliary state of CCC. Under these laws, ordinary dividends, or dividends that do not require prior approval by the Illinois Department of Insurance (the Department), are determined based on the greater of the prior year's statutory net income or 10% of statutory surplus as of the end of the prior year, as well as the timing and amount of dividends paid in the preceding twelve months. Additionally, ordinary dividends may only be paid from earned surplus, which is calculated by removing unrealized gains from unassigned surplus. As of December 31, 2020, CCC is in a positive earned surplus position. The maximum allowable dividend CCC could pay during 2021 that would not be subject to the Department’s prior approval is $1,070 million, less dividends paid during the preceding twelve months measured at that point in time. CCC paid dividends of $975 million in 2020. The actual level of dividends paid in any year is determined after an assessment of available dividend capacity, holding company liquidity and cash needs as well as the impact the dividends will have on the statutory surplus of the applicable insurance company. Combined statutory capital and surplus and statutory net income (loss) for the Combined Continental Casualty Companies are presented in the table below, determined in accordance with accounting practices prescribed or permitted by insurance and/or other regulatory authorities Statutory Capital and Surplus Statutory Net Income (Loss) December 31 Years ended December 31 (In millions) 2020 (1) 2019 2020 (1) 2019 2018 Combined Continental Casualty Companies $ 10,708 $ 10,787 $ 800 $ 1,062 $ 1,405 (1) Information derived from the statutory-basis financial statements to be filed with insurance regulators. CNAF’s domestic insurance subsidiaries are subject to risk-based capital (RBC) requirements. RBC is a method developed by the NAIC to determine the minimum amount of statutory capital appropriate for an insurance company to support its overall business operations in consideration of its size and risk profile. The formula for determining the amount of RBC specifies various factors, weighted based on the perceived degree of risk, which are applied to certain financial balances and financial activity. The adequacy of a company's actual capital is evaluated by a comparison to the RBC results, as determined by the formula. Companies below minimum RBC requirements are classified within certain levels, each of which requires specified corrective action. The statutory capital and surplus presented above for CCC was approximately 266% and 291% of company action level RBC as of December 31, 2020 and 2019. Company action level RBC is the level of RBC which triggers a heightened level of regulatory supervision. The statutory capital and surplus of the Company's foreign insurance subsidiaries, which is not significant to the overall statutory capital and surplus, also met or exceeded their respective regulatory and other capital requirements. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) by Component | 12 Months Ended |
Dec. 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 (43) 763 (53) 47 714 Amounts reclassified from accumulated other comprehensive income (loss) net of tax (expense) benefit of $12, $(12), $10, $— and $10 (43) 43 (38) — (38) Other comprehensive income (loss) net of tax (expense) benefit of $—, $(189), $4, $— and $(185) — 720 (15) 47 752 Balance as of December 31, 2020 $ — $ 1,745 $ (848) $ (94) $ 803 (In millions) Net unrealized gains (losses) on investments with OTTI 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, 2019 $ 16 $ 61 $ (775) $ (180) $ (878) Other comprehensive income (loss) before reclassifications (13) 957 (89) 39 894 Amounts reclassified from accumulated other comprehensive income (loss) net of tax (expense) benefit of $3, $(1), $8, $— and $10 (12) 8 (31) — (35) Other comprehensive income (loss) net of tax (expense) benefit of $—, $(255), $15, $— and $(240) (1) 949 (58) 39 929 Balance as of December 31, 2019 $ 15 $ 1,010 $ (833) $ (141) $ 51 (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 balances previously reported in the Net unrealized gains (losses) on investments with OTTI losses column are now reported in the Net unrealized gains (losses) on other investments column. Amounts reclassified from Accumulated other comprehensive income (loss) shown above are reported in Net income (loss) as follows: Component of AOCI Consolidated Statements of Operations Line Item Affected by Reclassifications Net unrealized gains (losses) on investments with 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 | 12 Months Ended |
Dec. 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. Specialty provides management and professional liability and other coverages through property and casualty products and services using a network of brokers, independent agencies and managing general underwriters. Commercial works with a network of brokers and independent agents to market a broad range of property and casualty insurance products to all types of insureds targeting small business, construction, middle markets and other commercial customers. The International segment underwrites property and casualty coverages on a global basis through a branch operation in Canada, a European business consisting of two insurance companies based in the U.K. and Luxembourg and Hardy, the Company's Lloyd's syndicate. The Company's operations outside of Property & Casualty Operations are managed and reported in two segments: Life & Group and Corporate & Other. Life & Group primarily includes the results of the long term care business that is in run-off. Corporate & Other primarily includes certain corporate expenses, including interest on corporate debt, and the results of certain property and casualty business in run-off, including CNA Re and A&EP. The accounting policies of the segments are the same as those described in Note A to the Consolidated Financial Statements. 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. Approximately 9% of the Company's direct written premiums were derived from outside the United States for the years ended December 31, 2020, 2019 and 2018. 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. Year ended December 31, 2020 International Life & Corporate (In millions) Eliminations Total Net written premiums $ 3,040 $ 3,565 $ 961 $ 494 $ — $ (1) $ 8,059 Operating revenues Net earned premiums $ 2,883 $ 3,323 $ 940 $ 504 $ — $ (1) $ 7,649 Net investment income 449 565 58 851 12 — 1,935 Non-insurance warranty revenue 1,252 — — — — — 1,252 Other revenues 1 25 — — 5 (5) 26 Total operating revenues 4,585 3,913 998 1,355 17 (6) 10,862 Claims, benefits and expenses Net incurred claims and benefits 1,792 2,436 629 1,286 6 — 6,149 Policyholders’ dividends 3 18 — — — — 21 Amortization of deferred acquisition costs 621 592 197 — — — 1,410 Non-insurance warranty expense 1,159 — — — — — 1,159 Other insurance related expenses 280 505 136 109 (1) (1) 1,028 Other expenses 50 34 (7) 7 141 (5) 220 Total claims, benefits and expenses 3,905 3,585 955 1,402 146 (6) 9,987 Core income (loss) before income tax 680 328 43 (47) (129) — 875 Income tax (expense) benefit on core income (loss) (145) (67) (5) 56 21 — (140) Core income (loss) $ 535 $ 261 $ 38 $ 9 $ (108) $ — 735 Net investment gains (losses) (54) Income tax (expense) benefit on net investment gains (losses) 9 Net investment gains (losses), after tax (45) Net income (loss) $ 690 December 31, 2020 (In millions) Reinsurance receivables $ 886 $ 922 $ 302 $ 390 $ 1,978 $ — $ 4,478 Insurance receivables 1,052 1,254 328 4 2 — 2,640 Deferred acquisition costs 330 281 97 — — — 708 Goodwill 117 — 31 — — — 148 Deferred non-insurance warranty acquisition expense 3,068 — — — — — 3,068 Insurance reserves Claim and claim adjustment expenses 5,748 9,041 2,091 3,743 2,083 — 22,706 Unearned premiums 2,635 1,824 546 114 — — 5,119 Future policy benefits — — — 13,318 — — 13,318 Deferred non-insurance warranty revenue 4,023 — — — — — 4,023 Year ended December 31, 2019 International Life & Corporate (In millions) Eliminations Total Net written premiums $ 2,848 $ 3,315 $ 971 $ 523 $ 1 $ (2) $ 7,656 Operating revenues Net earned premiums $ 2,773 $ 3,162 $ 974 $ 520 $ 1 $ (2) $ 7,428 Net investment income 556 654 63 820 25 — 2,118 Non-insurance warranty revenue 1,161 — — — — — 1,161 Other revenues 1 29 — — 6 (5) 31 Total operating revenues 4,491 3,845 1,037 1,340 32 (7) 10,738 Claims, benefits and expenses Net incurred claims and benefits 1,595 2,130 624 1,416 18 — 5,783 Policyholders’ dividends 5 18 — — — — 23 Amortization of deferred acquisition costs 610 537 236 — — — 1,383 Non-insurance warranty expense 1,082 — — — — — 1,082 Other insurance related expenses 292 505 130 115 (2) (2) 1,038 Other expenses 48 32 8 8 144 (5) 235 Total claims, benefits and expenses 3,632 3,222 998 1,539 160 (7) 9,544 Core income (loss) before income tax 859 623 39 (199) (128) — 1,194 Income tax (expense) benefit on core income (loss) (188) (134) (9) 90 26 — (215) Core income (loss) $ 671 $ 489 $ 30 $ (109) $ (102) $ — 979 Net investment gains (losses) 29 Income tax (expense) benefit on net investment gains (losses) (8) Net investment gains (losses), after tax 21 Net income (loss) $ 1,000 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 Year ended December 31, 2018 Life & Corporate (In millions) International Eliminations Total Net written premiums $ 2,744 $ 3,060 $ 1,018 $ 524 $ — $ (1) $ 7,345 Operating revenues Net earned premiums $ 2,732 $ 3,050 $ 1,001 $ 530 $ — $ (1) $ 7,312 Net investment income 439 500 57 801 20 — 1,817 Non-insurance warranty revenue 1,007 — — — — — 1,007 Other revenues 2 28 1 2 19 (2) 50 Total operating revenues 4,180 3,578 1,059 1,333 39 (3) 10,186 Claims, benefits and expenses Net incurred claims and benefits 1,526 2,053 699 1,218 51 — 5,547 Policyholders’ dividends 5 20 — — — — 25 Amortization of deferred acquisition costs 599 505 231 — — — 1,335 Non-insurance warranty expense 923 — — — — — 923 Other insurance related expenses 279 505 135 122 (1) (1) 1,039 Other expenses 46 43 14 7 193 (2) 301 Total claims, benefits and expenses 3,378 3,126 1,079 1,347 243 (3) 9,170 Core income (loss) before income tax 802 452 (20) (14) (204) — 1,016 Income tax (expense) benefit on core income (loss) (173) (95) 1 57 39 — (171) Core income (loss) $ 629 $ 357 $ (19) $ 43 $ (165) $ — 845 Net investment gains (losses) (52) Income tax (expense) benefit on net investment gains (losses) 14 Net investment gains (losses), after tax (38) Net deferred tax asset remeasurement 6 Net income (loss) $ 813 The following table presents operating revenues by line of business for each reportable segment. Years ended December 31 (In millions) 2020 2019 2018 Specialty Management & Professional Liability $ 2,577 $ 2,572 $ 2,440 Surety 596 596 571 Warranty & Alternative Risks 1,412 1,323 1,169 Specialty revenues 4,585 4,491 4,180 Commercial Middle Market 1,447 1,439 1,306 Construction (1) 1,120 1,043 955 Small Business 482 504 501 Other Commercial 864 859 816 Commercial revenues 3,913 3,845 3,578 International Canada 291 277 255 Europe 389 363 363 Hardy 318 397 441 International revenues 998 1,037 1,059 Life & Group revenues 1,355 1,340 1,333 Corporate & Other revenues 17 32 39 Eliminations (6) (7) (3) Total operating revenues 10,862 10,738 10,186 Net investment gains (losses) (54) 29 (52) Total revenues $ 10,808 $ 10,767 $ 10,134 (1) Effective January 1, 2020, the Construction line of business is presented separately in the Commercial segment to better align with the Company's underwriting expertise and the manner in which the products are sold. Prior period information has been conformed to the new line of business presentation. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) The following tables present unaudited quarterly financial data. 2020 (In millions, except per share data) First Second Third Fourth Full Year Revenues $ 2,291 $ 2,766 $ 2,820 $ 2,931 $ 10,808 Net income (loss) (1)(2)(3) (61) 151 213 387 690 Basic earnings (loss) per share (5) (0.23) 0.56 0.79 1.42 2.54 Diluted earnings (loss) per share (5) $ (0.23) $ 0.55 $ 0.79 $ 1.42 $ 2.53 2019 (In millions, except per share data) First Second Third Fourth Full Year Revenues $ 2,695 $ 2,610 $ 2,685 $ 2,777 $ 10,767 Net income (loss) (4) 342 278 107 273 1,000 Basic earnings (loss) per share (5) 1.26 1.03 0.39 1.00 3.68 Diluted earnings (loss) per share (5) $ 1.25 $ 1.02 $ 0.39 $ 1.00 $ 3.67 (1) Net income (loss) in the first quarter of 2020 included pretax net investment losses of $216 million and a pretax loss on limited partnership and common stock investments of $125 million. (2) Net income (loss) in the second quarter of 2020 included pretax net catastrophe losses of $301 million, including $182 million related to the COVID-19 pandemic. (3) Net income (loss) in the third quarter of 2020 included pretax net catastrophe losses of $160 million and a $74 million pretax charge related to recognition of an active life reserve premium deficiency as a result of the third quarter 2020 GPV. Catastrophe losses were driven by severe weather related events, primarily Hurricanes Laura, Isaias and Sally, and the Midwest derecho. (4) Net income (loss) in the third quarter of 2019 included a $216 million pretax charge related to recognition of an active life reserve premium deficiency as a result of the third quarter 2019 GPV. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party TransactionsThe Company reimburses Loews for, or pays directly, fees and expenses of investment facilities and services provided to the Company. Additionally, the Company provides investment-related processing services to Loews and charges Loews for these services. The net amounts incurred by the Company for these fees, expenses and services were $47 million, $44 million and $43 million for the years ended December 31, 2020, 2019 and 2018. Net amounts due to Loews related to these services, included in Other liabilities and payable in the first quarter of the subsequent year, were $22 million and $21 million as of December 31, 2020 and 2019. In addition, the Company reimbursed Loews for general corporate services and related travel expenses of less than $1 million and $1 million for the years ended December 31, 2020 and 2019. The CNA Tax Group is included in the consolidated federal income tax return of Loews and its eligible subsidiaries. The related payable due to Loews, included in Other liabilities, was $67 million as of December 31, 2020. The related receivable from Loews, included in Other assets, was $21 million as of December 31, 2019. For a detailed description of the income tax agreement with Loews see Note D to the Consolidated Financial Statements. In addition, the Company writes, at standard rates, a limited amount of insurance for Loews and its subsidiaries. The earned premiums for each of the years ended December 31, 2020, 2019 and 2018 were $2 million. |
Non-Insurance Revenues from Con
Non-Insurance Revenues from Contracts with Customers | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Non-Insurance Revenues from Contracts with Customers | Non-Insurance Revenues from Contracts with Customers Non-Insurance revenue is recognized when obligations under the terms of a contract with a customer are satisfied; generally this occurs over time as obligations are fulfilled. Revenue is measured as the amount of consideration the Company expects to receive in exchange for providing services. Deferred Non-Insurance Warranty Revenue The Company had deferred non-insurance warranty revenue balances of $4.0 billion and $3.8 billion reported in Deferred non-insurance warranty revenue as of December 31, 2020 and 2019. The increase in the deferred revenue balance for the year ended December 31, 2020 was primarily driven by deferrals outpacing revenue recognized in the period due to growth in the business. For the year ended December 31, 2020, the Company recognized $1.1 billion of revenues that were included in the deferred revenue balance as of January 1, 2020. For the year ended December 31, 2019, the Company recognized $971 million of revenues that were included in the deferred revenue balance as of January 1, 2019. For the years ended December 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 $1.2 billion of the deferred revenue in 2021, $0.9 billion in 2022, $0.8 billion in 2023 and $1.2 billion thereafter. Cost to Obtain and Fulfill Non-Insurance Warranty Contracts with Customers For the years ended December 31, 2020 and 2019, capitalized commission costs were $3.1 billion and $2.8 billion and capitalized administrator service costs were $37 million and $31 million. For the years ended December 31, 2020 and 2019, the amount of amortization of capitalized costs was $897 million and $813 million and there were no impairment losses related to the costs capitalized. There were no adjustments to deferred costs recorded for the years ended December 31, 2020 and 2019. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent EventOn December 30, 2020, the Company entered into an agreement with Cavello Bay Reinsurance Limited (Cavello), a subsidiary of Enstar Group Limited, under which Cavello will reinsure a legacy portfolio of excess workers’ compensation policies. The transaction closed on February 5, 2021. Under the terms of the transaction, based on reserves in place as of January 1, 2020, and adjusted for any subsequent claim activity, the Company ceded to Cavello approximately $690 million of net excess workers’ compensation liabilities relating to business written in 2007 and prior under a retroactive reinsurance agreement with an aggregate limit of $1 billion. The Company will recognize an after-tax loss of approximately $12 million in the first quarter of 2021. |
Schedule I. Summary of Investme
Schedule I. Summary of Investments - Other Than Investments in Related Parties | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Schedule I. Summary of Investments - Other than Investments in Related Parties | SCHEDULE I. SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES Incorporated herein by reference to Note B to the Consolidated Financial Statements included under Item 8. |
Schedule II. Condensed Financia
Schedule II. Condensed Financial Information of Registrant (Parent Company) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule II. Condensed Financial Information of Registrant (Parent Company) | SCHEDULE II. CONDENSED FINANCIAL INFORMATION OF REGISTRANT (PARENT COMPANY) CNA Financial Corporation Statements of Operations and Comprehensive Income (Loss) Years ended December 31 (In millions) 2020 2019 2018 Revenues Net investment income $ 3 $ 13 $ 10 Net investment losses (20) (21) — Total revenues (17) (8) 10 Expenses Administrative and general 1 1 1 Interest 122 131 135 Total expenses 123 132 136 Loss from operations before income taxes and equity in net income of subsidiaries (140) (140) (126) Income tax benefit 18 21 9 Loss before equity in net income of subsidiaries (122) (119) (117) Equity in net income of subsidiaries 812 1,119 930 Net income 690 1,000 813 Equity in other comprehensive income (loss) of subsidiaries 752 929 (894) Total comprehensive income (loss) $ 1,442 $ 1,929 $ (81) See accompanying Notes to Condensed Financial Information as well as the Consolidated Financial Statements and accompanying Notes. CNA Financial Corporation Balance Sheets December 31 (In millions, except share data) 2020 2019 Assets Investment in subsidiaries $ 14,996 $ 14,412 Cash — 1 Short term investments 522 521 Amounts due from affiliates 4 2 Other assets 1 1 Total assets $ 15,523 $ 14,937 Liabilities Long term debt $ 2,776 $ 2,679 Other liabilities 40 43 Total liabilities 2,816 2,722 Stockholders' Equity Common stock ($2.50 par value; 500,000,000 shares authorized; 273,040,243 shares issued; 271,391,603 and 271,412,591 shares outstanding) 683 683 Additional paid-in capital 2,211 2,203 Retained earnings 9,081 9,348 Accumulated other comprehensive income (loss) 803 51 Treasury stock (1,648,640 and 1,627,652 shares), at cost (71) (70) Total stockholders' equity 12,707 12,215 Total liabilities and stockholders' equity $ 15,523 $ 14,937 See accompanying Notes to Condensed Financial Information as well as the Consolidated Financial Statements and accompanying Notes. CNA Financial Corporation Statements of Cash Flows Years ended December 31 (In millions) 2020 2019 2018 Cash Flows from Operating Activities Net income $ 690 $ 1,000 $ 813 Adjustments to reconcile net income to net cash flows provided by operating activities: Equity in net income of subsidiaries (812) (1,119) (930) Dividends received from subsidiaries 975 1,065 1,026 Net investment losses 20 21 — Other, net 26 13 16 Net cash flows provided by operating activities 899 980 925 Cash Flows from Investing Activities Change in short term investments 2 10 130 Capital contributions to subsidiaries (1) (2) (2) Other, net — — — Net cash flows provided by investing activities 1 8 128 Cash Flows from Financing Activities Dividends paid to common stockholders (950) (929) (896) Proceeds from the issuance of debt 495 496 — Repayment of debt (419) (520) (150) Purchase of treasury stock (18) (23) — Other, net (9) (12) (7) Net cash flows used by financing activities (901) (988) (1,053) Net change in cash (1) — — Cash, beginning of year 1 1 1 Cash, end of year $ — $ 1 $ 1 See accompanying Notes to Condensed Financial Information as well as the Consolidated Financial Statements and accompanying Notes. Notes to Condensed Financial Information A. Summary of Significant Accounting Policies Basis of Presentation The condensed financial information of CNA Financial Corporation (CNAF or the Parent Company) should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in Item 8 of this Form 10-K. CNAF’s subsidiaries are accounted for using the equity method of accounting. Equity in net income of these subsidiaries is presented on the Condensed Statements of Operations as Equity in net income of subsidiaries. Loews owned approximately 89.6% of the outstanding common stock of CNAF as of December 31, 2020. |
Schedule III. Supplementary Ins
Schedule III. Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
Schedule III. Supplementary Insurance Information | SCHEDULE III. SUPPLEMENTARY INSURANCE INFORMATIONIncorporated herein by reference to Note O to the Consolidated Financial Statements included under Item 8. |
Schedule IV. Reinsurance
Schedule IV. Reinsurance | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Schedule IV. Reinsurance | SCHEDULE IV. REINSURANCE Incorporated herein by reference to Note G to the Consolidated Financial Statements included under Item 8. |
Schedule V. Valuation and Quali
Schedule V. Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule V. Valuation and Qualifying Accounts | SCHEDULE V. VALUATION AND QUALIFYING ACCOUNTS (In millions) Balance at Beginning of Period (1) Charged to Costs and Expenses Charged to Other Accounts Deductions Balance at End of Period Year ended December 31, 2020 Allowance for uncollectible: Mortgage loan receivables (1) $ 7 $ — $ 19 $ — $ 26 Insurance and reinsurance receivables $ 57 $ 4 $ — $ (7) $ 54 Allowance for credit losses: Fixed maturity securities (1) $ 6 $ — $ 92 $ (58) $ 40 Year ended December 31, 2019 Allowance for uncollectible: Insurance and reinsurance receivables $ 71 $ (6) $ — $ (8) $ 57 Year ended December 31, 2018 Allowance for uncollectible: Insurance and reinsurance receivables $ 73 $ 4 $ — $ (6) $ 71 (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. Adoption of the new standard resulted in beginning of period adjustments to the allowance for uncollectible mortgage loan receivables and the allowance for credit losses on fixed maturity securities of $7 million and $6 million, respectively. The beginning of period balances reflect these adjustments. For more information on the adoption of ASU 2016-13, see Note A to the Consolidated Financial Statements included under Item 8. |
Schedule VI. Supplemental Infor
Schedule VI. Supplemental Information Concerning Property and Casualty Insurance Operations | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Abstract] | |
Schedule VI. Supplemental Information Concerning Property and Casualty Insurance Operations | SCHEDULE VI. SUPPLEMENTAL INFORMATION CONCERNING PROPERTY AND CASUALTY INSURANCE OPERATIONS As of and for the years ended December 31 Consolidated Property and Casualty Operations (In millions) 2020 2019 2018 Balance Sheet Data Deferred acquisition costs $ 708 $ 662 Reserves for unpaid claim and claim adjustment expenses 22,706 21,720 Discount deducted from claim and claim adjustment expense reserves above (based on interest rates ranging from 3.5% to 6.5%) 1,209 1,321 Unearned premiums 5,119 4,583 Statement of Operations Data Net written premiums $ 8,059 $ 7,656 $ 7,345 Net earned premiums 7,649 7,428 7,312 Net investment income 1,896 2,063 1,751 Incurred claim and claim adjustment expenses related to current year 5,793 5,356 5,358 Incurred claim and claim adjustment expenses related to prior years (119) (127) (179) Amortization of deferred acquisition costs 1,410 1,383 1,335 Paid claim and claim adjustment expenses 5,164 5,576 5,331 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The Consolidated Financial Statements include the accounts of CNA Financial Corporation (CNAF) and its subsidiaries. Collectively, CNAF and its subsidiaries are referred to as CNA or the Company. Loews Corporation (Loews) owned approximately 89.6% of the outstanding common stock of CNAF as of December 31, 2020.The accompanying Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). Intercompany amounts have been eliminated. |
Use of Estimates | The preparation of Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates. |
Recently Adopted Accounting Standards Updates and Accounting Standards Pending Adoption | 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 reinsurance and insurance 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. See the accounting policy discussion within this Note, as well as Notes B and G to the Consolidated Financial Statements for additional information regarding credit losses. ASU 2014-09: In May 2014, the FASB issued ASU No. 2014-09, Revenue Recognition (Topic 606) : Revenue from Contracts with Customers . The standard excludes from its scope the accounting for insurance contracts, financial instruments, and certain other agreements that are governed under other GAAP guidance, but the standard does apply to certain of the Company's warranty products and services. The updated guidance requires an entity to recognize revenue as performance obligations are met, in an amount that reflects the consideration the entity is entitled to receive for the transfer of the promised goods or services. On January 1, 2018, the Company adopted the updated guidance using the modified retrospective method applied to all contracts which were not completed as of the date of adoption and recognized a cumulative effect adjustment that decreased Retained earnings by $66 million, net of tax. See Note R to the Consolidated Financial Statements for additional information regarding non-insurance revenues from contracts with customers. ASU 2016-01: In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . The updated accounting guidance requires changes to the reporting model for financial instruments. The guidance primarily changes the model for equity securities by requiring changes in the fair value of equity securities (except those accounted for under the equity method of accounting, those without readily determinable fair values and those that result in consolidation of the investee) to be recognized through the income statement. The Company adopted the updated guidance on January 1, 2018 and recognized a cumulative effect adjustment that increased beginning Retained earnings by $28 million, net of tax. 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, 2022. Early adoption is permitted. The Company may elect to apply the guidance using either a modified retrospective transition method or a full retrospective transition method. The guidance requires restatement of prior periods presented. The Company plans to adopt using the modified retrospective transition method and is currently evaluating 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. |
Premiums | Insurance premiums on property and casualty insurance contracts are recognized in proportion to the underlying risk insured and are principally earned ratably over the term of the policies. Premiums on long term care contracts are earned ratably over the policy year in which they are due. The reserve for unearned premiums represents the portion of premiums written relating to the unexpired terms of coverage. Property and casualty contracts that are retrospectively rated or subject to audit premiums contain provisions that result in an adjustment to the initial policy premium depending on the contract provisions. These provisions stipulate the adjustment due to loss experience of the insured during the coverage period, or changes in the level of exposure to insurance risk. For such contracts, the Company estimates the amount of ultimate premiums that the Company may earn upon completion of the coverage period and recognizes either an asset or a liability for the difference between the initial policy premium and the estimated ultimate premium. The Company either adjusts such estimated ultimate premium amounts during the course of the coverage period based on actual results to date, or by conducting premium audits after the policy has expired to determine the final exposure to insured risks. The resulting adjustment is recorded as either a reduction of or an increase to the earned premiums for the period. Insurance receivables include balances due currently or in the future, including amounts due from insureds related to paid losses under high deductible policies, and are presented at unpaid balances, net of an allowance for uncollectible receivables. A loss rate methodology is used to determine expected credit losses for insurance receivables. This methodology uses the Company’s historical annual credit losses relative to gross premium written to develop a range of credit loss rates for each dollar of gross written premium underwritten. The expected credit loss for amounts due from insureds under high deductible and retrospectively rated policies is calculated on a pool basis, informed by historical default rate data obtained from major rating agencies. Changes in the allowance are presented as a component of Other operating expenses on the Consolidated Statements of Operations. Amounts are considered past due based on policy payment terms. Insurance receivables and any related allowance are written off after collection efforts are exhausted or a negotiated settlement is reached. See the Credit Losses section of this note for additional information on the Company’s allowances for expected credit losses. |
Claim and claim adjustment expense reserves | Claim and claim adjustment expense reserves, except reserves for structured settlements not associated with asbestos and environmental pollution (A&EP), workers' compensation lifetime claims and long term care claims, are not discounted and are based on i) case basis estimates for losses reported on direct business, adjusted in the aggregate for ultimate loss expectations; ii) estimates of incurred but not reported (IBNR) losses; iii) estimates of losses on assumed reinsurance; iv) estimates of future expenses to be incurred in the settlement of claims; v) estimates of salvage and subrogation recoveries and vi) estimates of amounts due from insureds related to losses under high deductible policies. Management considers current conditions and trends as well as past Company and industry experience in establishing these estimates. The effects of inflation, which can be significant, are implicitly considered in the reserving process and are part of the recorded reserve balance. Ceded claim and claim adjustment expense reserves are reported as a component of Reinsurance receivables on the Consolidated Balance Sheets. |
Future policy benefits reserves | Future policy benefit reserves represent the active life reserves related to the Company's long term care policies for policyholders that are not currently receiving benefits and are computed using the net level premium method, which incorporates actuarial assumptions as to morbidity, persistency, inclusive of mortality, discount rate, future premium rate adjustments and expenses. Expense assumptions primarily relate to claim adjudication. These assumptions are locked in over the life of the policy; however if a premium deficiency emerges, the assumptions are unlocked and the future policy benefit reserves are increased. The September 30, 2020 gross premium valuation (GPV) indicated a premium deficiency of $74 million and future policy benefit reserves at that date were increased accordingly. As a result, the long term care active life reserves carried as of September 30, 2020 represent management’s best estimate assumptions at that date with no margin for adverse deviation. |
Insurance-relate assessments | Liabilities for insurance-related assessments are accrued when an assessment is probable, when it can be reasonably estimated and when the event obligating the entity to pay an imposed or probable assessment has occurred. Liabilities for insurance-related assessments are not discounted and are included as part of Other liabilities on the Consolidated Balance Sheets. |
Reinsurance | Reinsurance accounting allows for contractual cash flows to be reflected as premiums and losses. To qualify for reinsurance accounting, reinsurance agreements must include risk transfer. To meet risk transfer requirements, a reinsurance contract must include both insurance risk, consisting of underwriting and timing risk, and a reasonable possibility of a significant loss for the assuming entity. Reinsurance receivables related to paid losses are presented at unpaid balances. Reinsurance receivables related to unpaid losses are estimated in a manner consistent with claim and claim adjustment expense reserves or future policy benefit reserves. Reinsurance receivables are reported net of an allowance for uncollectible amounts on the Consolidated Balance Sheets. The cost of reinsurance is primarily accounted for over the life of the underlying reinsured policies using assumptions consistent with those used to account for the underlying policies or over the reinsurance contract period. The ceding of insurance does not discharge the primary liability of the Company. The Company has established an allowance for uncollectible reinsurance receivables which relates to both amounts already billed on ceded paid losses as well as ceded reserves that will be billed when losses are paid in the future. For assessing expected credit losses, the Company separates reinsurance receivables into two pools: voluntary reinsurance receivables and involuntary receivables related 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. Reinsurer financial strength ratings are updated and reviewed on an annual basis or sooner if the Company becomes aware of significant changes related to a reinsurer. The allowance for uncollectible reinsurance receivables is estimated on the basis of periodic evaluations of balances due from reinsurers, reinsurer financial strength rating and solvency, industry experience and current and forecast economic conditions. Because billed receivables generally approximate 5% or less of total reinsurance receivables, the age of the reinsurance receivables related to paid losses is not a significant input into the allowance analysis. Changes in the allowance for uncollectible reinsurance receivables are presented as a component of Insurance claims and policyholders' benefits on the Consolidated Statements of Operations. See the Credit Losses section of this note for additional information on the Company's allowances for expected credit losses. Amounts are considered past due based on the reinsurance contract terms. Reinsurance receivables related to paid losses and any related allowance are written off after collection efforts have been exhausted or a negotiated settlement is reached with the reinsurer. Reinsurance receivables from insolvent insurers related to paid losses are written off when the settlement due from the estate can be reasonably estimated. At the time reinsurance receivables related to paid losses are written off, any required adjustment to reinsurance receivables related to unpaid losses is recorded as a component of Insurance claims and policyholders' benefits on the Consolidated Statements of Operations. A loss portfolio transfer is a retroactive reinsurance contract. If the cumulative claim and allocated claim adjustment expenses ceded under a loss portfolio transfer exceed the consideration paid, the resulting gain from such excess is deferred and amortized into earnings in future periods in proportion to actual recoveries under the loss portfolio transfer. In any period in which there is a revised estimate of claim and allocated claim adjustment expenses and the loss portfolio transfer is in a gain position, the deferred gain is recalculated as if the revised estimate was available at the inception date of the loss portfolio transfer and the change in the deferred gain is recognized in earnings. |
Deferred acquisition costs | Deferrable acquisition costs include commissions, premium taxes and certain underwriting and policy issuance costs which are incremental direct costs of successful contract acquisitions. Acquisition costs related to property and casualty business are deferred and amortized ratably over the period the related premiums are earned. Deferred acquisition costs are presented net of ceding commissions and other ceded acquisition costs.The Company evaluates deferred acquisition costs for recoverability. Anticipated investment income is considered in the determination of the recoverability of deferred acquisition costs. Adjustments, if necessary, are recorded in current period results of operations. |
Policyholder dividends | Policyholder dividends are paid to participating policyholders within the worker’s compensation and surety lines of business. Net written premiums for participating dividend policies were approximately 1% of total net written premiums for each of the years ended December 31, 2020, 2019 and 2018. Dividends to policyholders are accrued according to the Company's best estimate of the amount to be paid in accordance with contractual provisions and applicable state laws. Dividends to policyholders are presented as a component of Insurance claims & policyholders' benefits on the Consolidated Statements of Operations and Other liabilities on the Consolidated Balance Sheets. |
Investments | The Company classifies its fixed maturity securities as either available-for-sale or trading, and as such, they are carried at fair value. Changes in fair value of trading securities are reported within Net investment income on the Consolidated Statements of Operations. Changes in fair value related to available-for-sale securities are reported as a component of Other comprehensive income. The cost of fixed maturity securities classified as available-for-sale is adjusted for amortization of premiums and accretion of discounts, which are included in Net investment income on the Consolidated Statements of Operations. The amortization of premium and accretion of discount for fixed maturity securities takes into consideration call and maturity dates that produce the lowest yield. For asset-backed securities included in fixed maturity securities, the Company recognizes income using an effective yield based on anticipated prepayments and the estimated economic life of the securities. When estimates of prepayments change, the effective yield is recalculated to reflect actual payments to date and anticipated future payments predominantly using the retrospective method. To the extent that unrealized gains on fixed maturity securities supporting long term care products and structured settlements not funded by annuities would result in a premium deficiency if those gains were realized, a related increase in Insurance reserves is recorded, net of tax, as a reduction of net unrealized gains through Other comprehensive income (Shadow Adjustments). Shadow Adjustments, net of tax, increased $575 million and $1,120 million for the years ended December 31, 2020 and 2019, respectively. As of December 31, 2020 and 2019, net unrealized gains on investments included in Accumulated other comprehensive income (AOCI) were correspondingly reduced by Shadow Adjustments of $2,773 million and $2,198 million, respectively. Equity securities are carried at fair value. The Company's non-redeemable preferred stock contain characteristics of debt securities, are priced similarly to bonds and are held primarily for income generation through periodic dividends. While recognition of gains and losses on these securities is not discretionary, management does not consider the changes in fair value of non-redeemable preferred stock to be reflective of our primary operations. As such, the changes in the fair value of these securities are recorded through Net investment gains (losses) on the Consolidated Statements of Operations. The Company owns certain common stock with the intention of holding the securities primarily for market appreciation and as such, the changes in the fair value of these securities are recorded through Net investment income. The Company's carrying value of investments in limited partnerships is its share of the net asset value of each partnership, as determined by the general partner. Certain partnerships for which results are not available on a timely basis are reported on a lag, primarily three months or less. Changes in net asset values are accounted for under the equity method and recorded within Net investment income on the Consolidated Statements of Operations. Mortgage loans are commercial in nature, are carried at unpaid principal balance, net of unamortized fees and an allowance for expected credit losses, and are recorded once funded. 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. The Company applies expected credit loss rates by pool to the outstanding receivable balances. Changes in the allowance for mortgage loans are presented as a component of Net investment gains (losses) on the Consolidated Statements of Operations. Prior to 2020, mortgage loans were evaluated on an individual loan basis considering the collection experience of each loan and other credit quality indicators such as DSCR and the credit-worthiness of the borrower or tenants of credit tenant loan properties. Mortgage loans were considered to be impaired loans and a loss incurred when it was probable that contractual principal and interest payments would not be collected and any impairment losses were recognized as a direct write-down of amortized cost. See the Credit Losses section of this note for additional information on the Company’s allowances for expected credit losses. Interest income from mortgage loans is recognized on an accrual basis using the effective yield method. Other invested assets include overseas deposits. Overseas deposits are valued using the net asset value per share (or equivalent) practical expedient. They are primarily short-term government securities, agency securities and corporate bonds held in trusts that are managed by Lloyd's of London. These funds are required of Lloyd's syndicates to protect policyholders in overseas markets and may be denominated in local currency. Short term investments are carried at fair value, with the exception of cash accounts earning interest, which are carried at cost and approximate fair value. Changes in fair value are reported as a component of Other comprehensive income. Purchases and sales of all securities are recorded on the trade date, except for private placement securities, including bank loan participations, which are recorded once funded. Net investment gains and losses are determined on the basis of the cost or amortized cost of the specific securities sold. |
Variable interest entities | In the normal course of investing activities, the Company enters into relationships with variable interest entities (VIEs), as both an investor in limited partnerships and asset-backed securities issued by third-party VIEs. The Company is not the primary beneficiary of these VIEs, and therefore does not consolidate them. The Company determines whether it is the primary beneficiary of a VIE based on a qualitative assessment of the relative power and benefits of the Company and the other participants in the VIE. The Company’s maximum exposure to loss with respect to these investments is limited to the investment carrying values included in the Company’s Consolidated Balance Sheets and any unfunded commitments.An available for sale security is impaired if the fair value of the security is less than its cost adjusted for accretion, amortization and allowance for credit losses. When a security is impaired, it is evaluated to determine whether the Company intends to sell the security before recovery of amortized cost or whether a credit loss exists. Losses on securities that the Company intends to sell are recognized as impairment losses within Net investment gains (losses) on the Consolidated Statements of Operations. If a credit loss exists, an allowance is established and the corresponding amount is recognized as an impairment loss within Net investment gains (losses) on the Consolidated Statements of Operations. The allowance for credit losses related to available-for-sale fixed maturity securities is the difference between the 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. In subsequent periods, the allowance is reviewed, with any changes in the allowance presented as a component of Net investment gains (losses) on the Consolidated Statements of Operations. Changes in the difference between the amortized cost basis, net of the allowance, and the fair value, are recognized in Other comprehensive income. |
Impairments, other than temporary | Significant judgment is required in the determination of whether an impairment loss has occurred for a security. The Company follows a consistent and systematic process for determining and recording an impairment loss, including the evaluation of securities in an unrealized loss position and securities with an allowance for credit losses on at least a quarterly basis. The Company’s assessment of whether an impairment loss has occurred incorporates both quantitative and qualitative information. A credit loss exists if the present value of cash flows expected to be collected is less than the amortized cost basis. Significant assumptions enter into these cash flow projections including delinquency rates, probable risk of default, loss severity upon a default, over collateralization and interest coverage triggers and credit support from lower level tranches. The Company 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 and long-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. See the Credit Losses section of this note for additional information on the Company’s allowances for expected credit losses. Prior to 2020, the Company’s assessment of whether an impairment loss occurred also incorporated both quantitative and qualitative information. Fixed maturity securities in an unrealized loss position that the Company intended to sell, or it more likely than not would be required to sell before recovery of amortized cost, were considered to be impaired and the entire difference between the amortized cost basis and fair value of the security was recognized as an impairment loss in earnings as a direct write-down of amortized cost. The remaining fixed maturity securities in an unrealized loss position were evaluated to determine if a credit loss existed. If a credit loss was determined to exist, the credit loss was recognized in earnings as a direct write-down of amortized cost. |
Credit Losses | The allowances for credit losses on fixed maturity securities, mortgage loans, reinsurance receivables and insurance receivables are valuation accounts that are reported as a reduction of a financial asset’s cost basis and are 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. Amounts are written off against the allowance when determined to be uncollectible. 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 within 90 days of the interest becoming 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 Consolidated Balance Sheet. |
Deferred Non-Insurance Warranty Revenue and Acquisition Expense | Non-insurance warranty revenue is primarily generated from separately-priced service contracts that provide mechanical breakdown and other coverages to vehicle or consumer goods owners. The warranty contracts generally provide coverage from 1 month to 10 years. For warranty products where the Company acts as the principal in the transaction, Non-insurance warranty revenue is reported on a gross basis, with amounts paid by customers reported as Non-insurance warranty revenue and commissions paid to agents reported as Non-insurance warranty expense. Non-insurance warranty revenue is reported net of any premiums related to contractual liability coverage issued by the Company's insurance operations. Additionally, the Company provides warranty administration services for dealer and manufacturer obligor warranty products, which include limited warranties and guaranteed automobile protection waivers. The Company recognizes Non-insurance warranty revenue over the service period in proportion to the actuarially determined expected claims emergence pattern. Customers pay in full at the inception of the warranty contract. The liability for deferred revenue represents the unearned portion of revenue in advance of the Company's performance. The deferred revenue balance includes amounts which are refundable on a pro rata basis upon cancellation. Dealers, retailers and agents earn commission for assisting the Company in obtaining non-insurance warranty contracts. Additionally, the Company utilizes a third-party to perform warranty administrator services for its consumer goods warranties. These costs, which are deferred and recorded as Deferred non-insurance warranty acquisition expense, are amortized to Non-insurance warranty expense consistent with how the related revenue is recognized. The Company evaluates deferred costs for recoverability including consideration of anticipated investment income. Adjustments to deferred costs, if necessary, are recorded in the current period results of operations. |
Income Taxes | The Company and its eligible subsidiaries (CNA Tax Group) are included in the consolidated federal income tax return of Loews and its eligible subsidiaries. The Company accounts for income taxes under the asset and liability method. Under the asset and liability method, deferred income taxes are recognized for temporary differences between the financial statement and tax return bases of assets and liabilities, based on enacted tax rates and other provisions of the tax law. The effect of a change in tax laws or rates on deferred tax assets and liabilities is recognized in income in the period in which such change is enacted. Future tax benefits are recognized to the extent that realization of such benefits is more likely than not, and a valuation allowance is established for any portion of a deferred tax asset that management believes will not be realized. The Company releases tax effects from AOCI utilizing the security-by-security approach for Net unrealized gains (losses) on investments with an allowance for credit losses and Net unrealized gains (losses) on other investments. For Pension and postretirement benefits, tax effects from AOCI are released at enacted tax rates based on the pre-tax adjustments to pension liabilities or assets recognized within Other comprehensive income. |
Pension and Postretirement Benefits | The Company recognizes the overfunded or underfunded status of its defined benefit plans in Other assets or Other liabilities on the Consolidated Balance Sheets. Changes in funded status related to prior service costs and credits, and actuarial gains and losses arising from differences between actual experience and actuarial assumptions, are recognized in the year in which the changes occur through Other comprehensive income. Unrecognized actuarial gains and losses in excess of 10% of the greater of the beginning of the year projected benefit obligation or fair value of plan assets (the corridor) are amortized as a component of net periodic pension cost (benefit) over the average remaining life expectancy of the plan participants. Annual service cost, interest cost, expected return on plan assets, amortization of prior service costs and credits and amortization of actuarial gains and losses are recognized on the Consolidated Statements of Operations. The vested benefit obligation for the CNA Retirement Plan is determined based on eligible compensation and accrued service for previously entitled employees. Effective June 30, 2015, future benefit accruals under the CNA Retirement Plan were eliminated and the benefit obligations were frozen. |
Stock-Based Compensation | The Company records compensation expense using the fair value method for all awards it grants, modifies or cancels primarily on a straight-line basis over the requisite service period, generally three years. |
Foreign Currency | The Company's foreign subsidiaries' balance sheet accounts are translated at the exchange rates in effect at each reporting date and income statement accounts are either translated at the exchange rates on the date of the transaction or at average exchange rates. Foreign currency translation gains and losses are reflected in Stockholders' equity as a component of AOCI. |
Leases | A lease provides the lessee the right to control the use of an identified asset for a period of time in exchange for consideration. Operating lease right-of-use (ROU) assets and lease liabilities are included in Other assets Other liabilities |
Property and Equipment | Property and equipment are carried at cost less accumulated depreciation. Depreciation is based on the estimated useful lives of the various classes of property and equipment and is determined principally on the straight-line method. Furniture and fixtures are depreciated over seven years. Office equipment is depreciated over five years. The estimated lives for data processing equipment and software generally range from three |
Goodwill | Goodwill represents the excess of purchase price over the fair value of the net assets of acquired entities and businesses. Goodwill in the International segment may change from period to period as a result of foreign currency translation. Goodwill is tested for impairment annually or when certain triggering events require such tests. As a result of reviews completed for the year ended December 31, 2020, the Company determined that the estimated fair value of the reporting units were in excess of their carrying value including Goodwill. Changes in future periods in assumptions about the level of economic capital, business growth, earnings projections or the weighted average cost of capital could result in goodwill impairment. |
Other Intangible Assets | Other intangible assets are reported within Other assets on the Consolidated Balance Sheets. Finite-lived intangible assets are amortized over their estimated useful lives. Indefinite-lived other intangible assets are tested for impairment annually or when certain triggering events require such tests. |
Earnings (Loss) Per Share Data | 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) | 12 Months Ended |
Dec. 31, 2020 | |
Investments [Abstract] | |
Net investment income | The significant components of Net investment income are presented in the following table. Years ended December 31 (In millions) 2020 2019 2018 Fixed maturity securities $ 1,728 $ 1,817 $ 1,795 Equity securities 65 85 18 Limited partnership investments 121 180 (22) Mortgage loans 57 51 50 Short term investments 9 34 26 Trading portfolio 18 9 7 Other 1 5 4 Gross investment income 1,999 2,181 1,878 Investment expense (64) (63) (61) Net investment income $ 1,935 $ 2,118 $ 1,817 |
Net realized investment gains (losses) | Net investment gains (losses) are presented in the following table. Years ended December 31 (In millions) 2020 2019 2018 Net investment gains (losses): Fixed maturity securities: Gross gains $ 220 $ 125 $ 168 Gross losses (220) (131) (164) Net investment gains (losses) on fixed maturity securities — (6) 4 Equity securities (3) 66 (74) Derivatives (10) (11) 9 Mortgage loans (21) — — Short term investments and other (20) (20) 9 Net investment gains (losses) $ (54) $ 29 $ (52) |
Debt securities, available-for-sale, allowance for credit loss | Accrued interest receivable on available-for-sale fixed maturity securities totaled $371 million and is excluded from the estimate of expected credit losses and the amortized cost basis in the table included within this Note. Year ended December 31, 2020 (In millions) Corporate and other bonds Asset-backed Total Allowance for credit losses: Beginning balance $ — $ — $ — Additions to the allowance for credit losses: Impact of adopting ASC 326 6 — 6 Securities for which credit losses were not previously recorded 67 12 79 Available-for-sale securities accounted for as PCD assets 5 — 5 Reductions to the allowance for credit losses: Securities sold during the period (realized) 22 — 22 Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis 1 — 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 (32) 5 (27) Ending balance $ 23 $ 17 $ 40 |
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. Years ended December 31 (In millions) 2020 2019 2018 Fixed maturity securities available-for-sale: Corporate and other bonds $ 87 $ 33 $ 12 Asset-backed 24 11 9 Impairment losses recognized in earnings $ 111 $ 44 $ 21 |
Summary of fixed maturity securities | The following tables present a summary of fixed maturity securities. December 31, 2020 Cost or Gross Gross Allowance for Credit Losses (1) Estimated (In millions) Fixed maturity securities available-for-sale: Corporate and other bonds $ 20,792 $ 3,578 $ 22 $ 23 $ 24,325 States, municipalities and political subdivisions 9,729 1,863 — — 11,592 Asset-backed: Residential mortgage-backed 3,442 146 1 — 3,587 Commercial mortgage-backed 1,933 93 42 17 1,967 Other asset-backed 2,179 81 9 — 2,251 Total asset-backed 7,554 320 52 17 7,805 U.S. Treasury and obligations of government-sponsored enterprises 339 2 3 — 338 Foreign government 512 32 — — 544 Redeemable preferred stock — — — — — Total fixed maturity securities available-for-sale 38,926 5,795 77 40 44,604 Total fixed maturity securities trading 27 — — — 27 Total fixed maturity securities $ 38,953 $ 5,795 $ 77 $ 40 $ 44,631 (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 December 31, 2020 Estimated Gross Estimated Gross Estimated Gross (In millions) Fixed maturity securities available-for-sale: Corporate and other bonds $ 609 $ 21 $ 12 $ 1 $ 621 $ 22 States, municipalities and political subdivisions 33 — — — 33 — Asset-backed: Residential mortgage-backed 71 1 11 — 82 1 Commercial mortgage-backed 533 40 28 2 561 42 Other asset-backed 344 9 13 — 357 9 Total asset-backed 948 50 52 2 1,000 52 U.S. Treasury and obligations of government-sponsored enterprises 63 3 — — 63 3 Foreign government 13 — — — 13 — Total $ 1,666 $ 74 $ 64 $ 3 $ 1,730 $ 77 Less than 12 Months 12 Months or Longer Total December 31, 2019 Estimated Gross Estimated Gross Estimated Gross (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 |
Contractual maturity | The following table presents available-for-sale fixed maturity securities by contractual maturity. December 31 2020 2019 (In millions) Cost or Estimated Cost or Estimated Due in one year or less $ 1,456 $ 1,458 $ 1,334 $ 1,356 Due after one year through five years 12,304 13,098 9,746 10,186 Due after five years through ten years 12,319 13,878 14,892 15,931 Due after ten years 12,847 16,170 12,134 14,714 Total $ 38,926 $ 44,604 $ 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. December 31, 2020 Mortgage Loans Amortized Cost Basis by Origination Year (1) (In millions) 2020 2019 2018 2017 2016 Prior Total DSCR ≥1.6x LTV less than 55% $ 75 $ 33 $ 36 $ 115 $ 33 $ 156 $ 448 LTV 55% to 65% 14 20 14 15 11 — 74 LTV greater than 65% — 5 — — 25 — 30 DSCR 1.2x - 1.6x LTV less than 55% — 17 — 5 9 68 99 LTV 55% to 65% 20 29 53 27 — — 129 LTV greater than 65% 52 54 — 8 — 12 126 DSCR ≤1.2 LTV less than 55% — 50 — 8 7 3 68 LTV 55% to 65% — 48 — — — — 48 LTV greater than 65% — 28 — 37 — 7 72 Total $ 161 $ 284 $ 103 $ 215 $ 85 $ 246 $ 1,094 (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. |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 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. December 31, 2020 Total (In millions) Level 1 Level 2 Level 3 Assets Fixed maturity securities: Corporate bonds and other $ 355 $ 24,109 $ 770 $ 25,234 States, municipalities and political subdivisions — 11,546 46 11,592 Asset-backed — 7,497 308 7,805 Total fixed maturity securities 355 43,152 1,124 44,631 Equity securities: Common stock 175 — 20 195 Non-redeemable preferred stock 68 722 7 797 Total equity securities 243 722 27 992 Short term and other 1,761 28 — 1,789 Total assets $ 2,359 $ 43,902 $ 1,151 $ 47,412 Liabilities Other liabilities $ — $ 19 $ — $ 19 Total liabilities $ — $ 19 $ — $ 19 December 31, 2019 Total (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) 1 — (1) (4) (4) Reported in Net investment income — — 2 (2) — Reported in Other comprehensive income (loss) 43 1 16 — 60 Total realized and unrealized investment gains (losses) 44 1 17 (6) 56 Purchases 264 45 154 15 478 Sales (3) — (9) — (12) Settlements (13) — (32) — (45) Transfers into Level 3 10 — 30 — 40 Transfers out of Level 3 — — (17) — (17) Balance as of December 31, 2020 $ 770 $ 46 $ 308 $ 27 $ 1,151 Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2020 recognized in Net income (loss) in the period $ — $ — $ — $ (6) $ (6) Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2020 recognized in Other comprehensive income (loss) in the period 43 1 18 — 62 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) 33 — 8 — 41 Total realized and unrealized investment gains (losses) 33 — 8 (2) 39 Purchases 256 — 48 2 306 Sales — — — — — Settlements (11) — (16) — (27) Transfers into Level 3 — — 45 — 45 Transfers out of Level 3 (32) — (117) — (149) Balance as of December 31, 2019 $ 468 $ — $ 165 $ 18 $ 651 Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2019 recognized in Net income (loss) in the period $ — $ — $ — $ (2) $ (2) Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2019 recognized in Other comprehensive income (loss) in the period 28 — 7 — 35 |
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. December 31, 2020 Estimated Fair Value Valuation Technique(s) Unobservable Input(s) Range Fixed maturity securities $ 966 Discounted cash flow Credit spread 1% - 8% (3%) December 31, 2019 Estimated Fair Value Valuation Technique(s) Unobservable Input(s) Range 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 Consolidated Balance Sheets are presented in the following tables. December 31, 2020 Carrying Estimated Fair Value (In millions) Level 1 Level 2 Level 3 Total Assets Mortgage loans $ 1,068 $ — $ — $ 1,151 $ 1,151 Liabilities Long term debt $ 2,776 $ — $ 3,148 $ — $ 3,148 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 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Reconciliation between the Company's federal income tax (expense) benefit at statutory rates and the recorded income tax (expense) benefit | The following table presents a reconciliation between the Company's income tax expense at statutory rates and the recorded income tax expense. Years ended December 31 (In millions) 2020 2019 2018 Income tax expense at statutory rates $ (172) $ (257) $ (203) Tax benefit from tax exempt income 52 53 63 Foreign taxes and credits 2 (1) (1) State income taxes (6) (14) (13) Other tax expense (7) (4) 3 Income tax expense $ (131) $ (223) $ (151) |
Current and deferred components of the Company's income tax (expense) benefit | The following table presents the current and deferred components of the Company's income tax expense. Years ended December 31 (In millions) 2020 2019 2018 Current tax expense $ (180) $ (269) $ (171) Deferred tax benefit 49 46 20 Total income tax expense $ (131) $ (223) $ (151) |
Significant components of the Company's deferred tax assets and liabilities | The deferred tax effects of the significant components of the Company's deferred tax assets and liabilities are presented in the following table. December 31 (In millions) 2020 2019 Deferred Tax Assets: Insurance reserves: Property and casualty claim and claim adjustment expense reserves $ 157 $ 129 Unearned premium reserves 174 153 Receivables 11 11 Employee benefits 122 127 Deferred retroactive reinsurance benefit 83 82 Other assets 143 132 Gross deferred tax assets 690 634 Deferred Tax Liabilities: Investment valuation differences 28 40 Deferred acquisition costs 93 83 Net unrealized gains 453 264 Software and hardware 31 34 Other liabilities 19 14 Gross deferred tax liabilities 624 435 Net deferred tax asset $ 66 $ 199 |
Claim and Claim Adjustment Expe
Claim and Claim Adjustment Expense Reserves (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | |
Short-duration insurance contracts, reconciliation of claims development to liability | The table below reconciles the net liability for unpaid claim and claim adjustment expenses to the amount presented on the Consolidated Balance Sheets. As of December 31 (In millions) 2020 Net liability for unpaid claim and claim adjustment expenses: Specialty $ 4,898 Commercial 8,204 International 1,822 Corporate & Other 162 Life & Group (1) 3,615 Total net claim and claim adjustment expenses 18,701 Reinsurance receivables: (2) Specialty 850 Commercial 837 International 269 Corporate & Other (3) 1,921 Life & Group 128 Total reinsurance receivables 4,005 Total gross liability for unpaid claim and claim adjustment expenses $ 22,706 (1) The Life & Group segment amounts are primarily related to long term care claim reserves, but also include amounts related to unfunded structured settlements arising from short-duration contracts. Long term care policies are long-duration contracts. (2) Reinsurance receivables presented are gross of the allowance for uncollectible reinsurance and do not include reinsurance receivables related to paid losses. (3) The Corporate & Other Reinsurance receivables are primarily related to A&EP claims covered under the Loss Portfolio Transfer (LPT). |
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. As of or for the years ended December 31 (In millions) 2020 2019 2018 Reserves, beginning of year: Gross $ 21,720 $ 21,984 $ 22,004 Ceded 3,835 4,019 3,934 Net reserves, beginning of year 17,885 17,965 18,070 Net incurred claim and claim adjustment expenses: Provision for insured events of current year 5,793 5,356 5,358 Increase (decrease) in provision for insured events of prior years (119) (127) (179) Amortization of discount 183 184 176 Total net incurred (1) 5,857 5,413 5,355 Net payments attributable to: Current year events (948) (992) (1,046) Prior year events (4,216) (4,584) (4,285) Total net payments (5,164) (5,576) (5,331) Foreign currency translation adjustment and other 123 83 (129) Net reserves, end of year 18,701 17,885 17,965 Ceded reserves, end of year 4,005 3,835 4,019 Gross reserves, end of year $ 22,706 $ 21,720 $ 21,984 (1) Total net incurred above does not agree to Insurance claims and policyholders' benefits as reflected on the Consolidated Statements of Operations due to amounts related to retroactive reinsurance deferred gain accounting, uncollectible reinsurance and benefit expenses related to future policy benefits, which are not reflected in the table above. |
Gross and net carried claim and claim adjustment expense reserves | The following tables present the gross and net carried reserves. December 31, 2020 Specialty Commercial International Life & Group Corporate & Other Total (In millions) Gross Case Reserves $ 1,567 $ 3,724 $ 892 $ 3,406 $ 1,105 $ 10,694 Gross IBNR Reserves 4,181 5,317 1,199 337 978 12,012 Total Gross Carried Claim and Claim Adjustment Expense Reserves $ 5,748 $ 9,041 $ 2,091 $ 3,743 $ 2,083 $ 22,706 Net Case Reserves $ 1,410 $ 3,357 $ 777 $ 3,298 $ 88 $ 8,930 Net IBNR Reserves 3,488 4,847 1,045 317 74 9,771 Total Net Carried Claim and Claim Adjustment Expense Reserves $ 4,898 $ 8,204 $ 1,822 $ 3,615 $ 162 $ 18,701 December 31, 2019 Specialty Commercial International Life & Group Corporate & Other Total (In millions) Gross Case Reserves $ 1,481 $ 3,937 $ 858 $ 3,576 $ 1,137 $ 10,989 Gross IBNR Reserves 3,757 4,719 1,018 140 1,097 10,731 Total Gross Carried Claim and Claim Adjustment Expense Reserves $ 5,238 $ 8,656 $ 1,876 $ 3,716 $ 2,234 $ 21,720 Net Case Reserves $ 1,343 $ 3,543 $ 759 $ 3,441 $ 92 $ 9,178 Net IBNR Reserves 3,333 4,306 869 116 83 8,707 Total Net Carried Claim and Claim Adjustment Expense Reserves $ 4,676 $ 7,849 $ 1,628 $ 3,557 $ 175 $ 17,885 |
Net prior year development | The following table presents development recorded for the Specialty, Commercial, International and Corporate & Other segments. Years ended December 31 (In millions) 2020 2019 2018 Pretax (favorable) unfavorable development: Specialty $ (61) $ (92) $ (150) Commercial 43 (2) (25) International (2) 21 (4) Corporate & Other — — (2) Total pretax (favorable) unfavorable development $ (20) $ (73) $ (181) |
Specialty | |
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | |
Short-duration insurance contracts, reconciliation of claims development to liability | The table below provides the line of business composition of the net liability for unpaid claim and claim adjustment expenses for the Specialty segment. As of December 31 (In millions) 2020 Net liability for unpaid claim and claim adjustment expenses: Medical Professional Liability $ 1,520 Other Professional Liability and Management Liability 2,850 Surety 385 Warranty 34 Other 109 Total net liability for unpaid claim and claim adjustment expenses $ 4,898 |
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. Years ended December 31 (In millions) 2020 2019 2018 Pretax (favorable) unfavorable development: Medical Professional Liability $ 35 $ 75 $ 47 Other Professional Liability and Management Liability (15) (69) (127) Surety (69) (92) (70) Warranty (7) (15) (10) Other (5) 9 10 Total pretax (favorable) unfavorable development $ (61) $ (92) $ (150) |
Commercial | |
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | |
Short-duration insurance contracts, reconciliation of claims development to liability | The table below provides the line of business composition of the net liability for unpaid claim and claim adjustment expenses for the Commercial segment. As of December 31 (In millions) 2020 Net Claim and claim adjustment expenses: Commercial Auto $ 502 General Liability 3,305 Workers' Compensation 3,872 Property and Other 525 Total net liability for claim and claim adjustment expenses $ 8,204 |
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. Years ended December 31 (In millions) 2020 2019 2018 Pretax (favorable) unfavorable development: Commercial Auto $ 33 $ (25) $ 1 General Liability 65 54 32 Workers' Compensation (96) (13) (32) Property and Other 41 (18) (26) Total pretax (favorable) unfavorable development $ 43 $ (2) $ (25) |
International | |
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | |
Short-duration insurance contracts, reconciliation of claims development to liability | The table below provides the composition of the net liability for unpaid claim and claim adjustment expenses for the International segment. As of December 31 (In millions) 2020 Net Claim and claim adjustment expenses: International excluding Hardy $ 1,282 Hardy 540 Total net liability for claim and claim adjustment expenses $ 1,822 |
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. Years ended December 31 (In millions) 2020 2019 2018 Pretax (favorable) unfavorable development: Casualty $ (13) $ (20) $ (17) Property, Energy and Marine (1) 13 25 — Specialty (2) 16 13 Total pretax (favorable) unfavorable development $ (2) $ 21 $ (4) |
CNAF Consolidated | |
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | |
Schedule of historical claims duration | The table below presents information about average historical claims duration as of December 31, 2020 and is presented as required supplementary information, which is unaudited. Average Annual Percentage Payout of Ultimate Net Incurred Claim and Allocated Claim Adjustment Expenses in Year: 1 2 3 4 5 6 7 8 9 10 Specialty Medical Professional Liability 3.7 % 19.5 % 24.0 % 18.4 % 12.2 % 8.2 % 5.2 % 3.1 % 0.9 % 4.1 % Other Professional Liability and Management Liability 7.0 % 22.9 % 21.4 % 16.3 % 10.1 % 6.6 % 4.4 % 2.3 % 3.0 % 2.6 % Surety (1) 18.3 % 44.6 % 20.0 % 3.5 % 2.2 % 1.2 % (0.7) % 0.9 % (1.4) % — % Commercial Commercial Auto 27.9 % 24.0 % 18.3 % 14.0 % 9.8 % 2.9 % 1.3 % 0.5 % — % 0.3 % General Liability 4.2 % 15.0 % 18.9 % 20.3 % 14.3 % 9.1 % 5.7 % 3.2 % 2.6 % 0.3 % Workers' Compensation 14.5 % 21.9 % 14.2 % 10.1 % 6.4 % 3.5 % 2.1 % 1.1 % 0.9 % 0.3 % International International - Excluding Hardy 19.8 % 25.6 % 11.0 % 7.2 % 6.2 % 5.4 % 6.9 % 2.9 % 1.1 % 0.9 % International - Hardy (2) 22.0 % 37.5 % 12.8 % 6.3 % 4.7 % 2.4 % 1.9 % 1.4 % (1) Due to the nature of the Surety business, average annual percentage payout of ultimate net incurred claim and allocated claim adjustment expenses has been calculated using only the payouts of mature accident years presented in the loss reserve development tables. (2) Average historical claims duration for Hardy is presented prospectively beginning with the first full year subsequent to acquisition, 2013. |
Impact of loss portfolio transfer on the consolidated statement of operations | The following table presents the impact of the Loss Portfolio Transfer on the Consolidated Statements of Operations. Years ended December 31 (In millions) 2020 2019 2018 Additional amounts ceded under LPT: Net A&EP adverse development before consideration of LPT $ 125 $ 150 $ 178 Provision for uncollectible third-party reinsurance on A&EP (25) (25) (16) Total additional amounts ceded under LPT 100 125 162 Retroactive reinsurance benefit recognized (94) (107) (114) Pretax impact of deferred retroactive reinsurance $ 6 $ 18 $ 48 |
Hardy | International | |
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | |
Short-duration contracts net incurred claims and allocated claim adjustment expenses | Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year As of December 31, 2020 (In millions, except reported claims data) Net Claim and Allocated Claim Adjustment Expense Reserves at Acquisition Net Incurred Claim and Allocated Claim Adjustment Expenses in 2012 (1)(2) Total Acquired Net Claim and Allocated Claim Adjustment Expense Reserves and 2012 Incurreds 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 (1) 2020 IBNR Cumulative Number of Claims Accident Year 2011 $ 130 $ (2) $ 128 $ 140 $ 139 $ 144 $ 143 $ 144 $ 146 $ 146 $ 147 $ (1) 6,307 2012 34 72 106 106 114 122 115 116 118 117 115 (1) 6,970 2013 133 149 140 142 143 147 147 147 2 7,744 2014 188 186 180 173 174 175 173 — 8,302 2015 194 183 181 182 181 182 (5) 9,401 2016 233 252 240 228 230 12 10,369 2017 248 258 246 247 5 12,430 2018 278 310 314 44 14,076 2019 226 229 76 9,648 2020 216 143 4,081 Total $ 2,000 $ 275 |
Short-duration contracts net cumulative paid claim adjustment expenses reconciliation of total liability for unpaid claim and claim adjustment expense | Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year (In millions) 2012 (1)(2) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 (1) 2020 Accident Year 2011 $ 31 $ 86 $ 128 $ 133 $ 136 $ 138 $ 140 $ 141 $ 142 2012 15 81 102 111 109 112 113 113 115 2013 39 103 123 129 133 136 140 142 2014 57 125 143 153 159 164 166 2015 30 99 132 147 160 164 2016 64 148 175 185 198 2017 54 152 186 208 2018 56 179 207 2019 44 104 2020 28 Total $ 1,474 Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 526 Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2011 5 Liability for unallocated claim adjustment expenses for accident years presented 9 Total net liability for unpaid claim and claim adjustment expenses $ 540 |
Short-duration contracts reserve development | Net strengthening (releases) of prior accident year reserves is presented in the following table. For the years ended December 31 Calendar Year (In millions) 2012 (1)(2) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 (1) 2020 Total (3) Accident Year 2011 $ (2) $ 12 $ (1) $ 5 $ (1) $ 1 $ 2 $ — $ 1 $ 17 2012 — 8 8 (7) 1 2 (1) (2) 9 2013 16 (9) 2 1 4 — — 14 2014 (2) (6) (7) 1 1 (2) (15) 2015 (11) (2) 1 (1) 1 (12) 2016 19 (12) (12) 2 (3) 2017 10 (12) 1 (1) 2018 32 4 36 2019 3 3 (1) Data presented for these calendar years is required supplemental information, which is unaudited. (2) Data presented for this calendar year is post-acquisition of Hardy. |
Medical Professional Liability | Specialty | |
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | |
Short-duration contracts net incurred claims and allocated claim adjustment expenses | Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year As of December 31, 2020 (In millions, except reported claims data) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 (1) 2020 IBNR Cumulative Number of Claims Accident Year 2011 $ 429 $ 437 $ 443 $ 468 $ 439 $ 434 $ 437 $ 437 $ 439 $ 439 $ 4 16,537 2012 464 469 508 498 493 484 493 499 497 5 17,739 2013 462 479 500 513 525 535 545 531 11 19,537 2014 450 489 537 530 535 529 527 11 19,770 2015 433 499 510 494 488 510 29 18,122 2016 427 487 485 499 508 27 15,998 2017 412 449 458 460 62 15,008 2018 404 429 431 98 14,531 2019 430 445 232 13,045 2020 477 426 7,787 Total $ 4,825 $ 905 |
Short-duration contracts net cumulative paid claim adjustment expenses reconciliation of total liability for unpaid claim and claim adjustment expense | Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year (In millions) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 (1) 2020 Accident Year 2011 $ 17 $ 109 $ 208 $ 295 $ 347 $ 375 $ 398 $ 409 $ 414 $ 432 2012 14 117 221 323 388 427 457 479 482 2013 17 119 255 355 414 462 495 508 2014 23 136 258 359 417 472 489 2015 22 101 230 313 384 420 2016 18 121 246 339 401 2017 19 107 235 308 2018 21 115 211 2019 17 91 2020 11 Total $ 3,353 Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 1,472 Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2011 19 Liability for unallocated claim adjustment expenses for accident years presented 29 Total net liability for unpaid claim and claim adjustment expenses $ 1,520 |
Short-duration contracts reserve development | Net strengthening (releases) of prior accident year reserves is presented in the following table. For the years ended December 31 Calendar Year (In millions) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 (1) 2020 Total Accident Year 2011 $ 8 $ 6 $ 25 $ (29) $ (5) $ 3 $ — $ 2 $ — $ 10 2012 5 39 (10) (5) (9) 9 6 (2) 33 2013 17 21 13 12 10 10 (14) 69 2014 39 48 (7) 5 (6) (2) 77 2015 66 11 (16) (6) 22 77 2016 60 (2) 14 9 81 2017 37 9 2 48 2018 25 2 27 2019 15 15 Total net development for the accident years presented above 43 54 32 Total net development for accident years prior to 2011 5 19 3 Total unallocated claim adjustment expense development (1) 2 — Total $ 47 $ 75 $ 35 (1) Data presented for these calendar years is required supplemental information, which is unaudited. |
Other Professional Liability and Management Liability | Specialty | |
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | |
Short-duration contracts net incurred claims and allocated claim adjustment expenses | Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year As of December 31, 2020 (In millions, except reported claims data) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 (1) 2020 IBNR Cumulative Number of Claims Accident Year 2011 $ 880 $ 908 $ 934 $ 949 $ 944 $ 911 $ 899 $ 888 $ 885 $ 883 $ 17 18,745 2012 923 909 887 878 840 846 833 831 850 25 18,504 2013 884 894 926 885 866 863 850 846 36 17,939 2014 878 898 885 831 835 854 845 57 17,568 2015 888 892 877 832 807 813 74 17,417 2016 901 900 900 904 907 120 17,946 2017 847 845 813 791 220 18,118 2018 850 864 869 276 19,789 2019 837 845 447 19,157 2020 930 777 16,557 Total $ 8,579 $ 2,049 |
Short-duration contracts net cumulative paid claim adjustment expenses reconciliation of total liability for unpaid claim and claim adjustment expense | Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year (In millions) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 (1) 2020 Accident Year 2011 $ 71 $ 314 $ 503 $ 605 $ 683 $ 726 $ 781 $ 796 $ 828 $ 851 2012 56 248 400 573 651 711 755 792 812 2013 54 249 447 618 702 754 771 779 2014 51 223 392 515 647 707 743 2015 60 234 404 542 612 677 2016 64 248 466 625 701 2017 57 222 394 498 2018 54 282 473 2019 64 263 2020 67 Total $ 5,864 Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 2,715 Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2011 79 Liability for unallocated claim adjustment expenses for accident years presented 56 Total net liability for unpaid claim and claim adjustment expenses $ 2,850 |
Short-duration contracts reserve development | Net strengthening (releases) of prior accident year reserves is presented in the following table. For the years ended December 31 Calendar Year (In millions) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 (1) 2020 Total Accident Year 2011 $ 28 $ 26 $ 15 $ (5) $ (33) $ (12) $ (11) $ (3) $ (2) $ 3 2012 (14) (22) (9) (38) 6 (13) (2) 19 (73) 2013 10 32 (41) (19) (3) (13) (4) (38) 2014 20 (13) (54) 4 19 (9) (33) 2015 4 (15) (45) (25) 6 (75) 2016 (1) — 4 3 6 2017 (2) (32) (22) (56) 2018 14 5 19 2019 8 8 Total net development for the accident years presented above (70) (38) 4 Total net development for accident years prior to 2011 (50) (17) (19) Total unallocated claim adjustment expense development (7) (14) — Total $ (127) $ (69) $ (15) (1) Data presented for these calendar years is required supplemental information, which is unaudited. |
Surety | Specialty | |
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | |
Short-duration contracts net incurred claims and allocated claim adjustment expenses | Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year As of December 31, 2020 (In millions, except reported claims data) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 (1) 2020 IBNR Cumulative Number of Claims Accident Year 2011 $ 120 $ 121 $ 116 $ 87 $ 75 $ 70 $ 66 $ 62 $ 62 $ 62 $ 1 5,828 2012 120 122 98 70 52 45 39 38 37 1 5,577 2013 120 121 115 106 91 87 83 82 1 5,078 2014 123 124 94 69 60 45 45 1 5,102 2015 131 131 104 79 63 58 6 5,026 2016 124 124 109 84 67 12 5,469 2017 120 115 103 84 31 5,706 2018 114 108 91 48 5,920 2019 119 112 67 5,344 2020 128 122 2,527 Total $ 766 $ 290 |
Short-duration contracts net cumulative paid claim adjustment expenses reconciliation of total liability for unpaid claim and claim adjustment expense | Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year (In millions) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 (1) 2020 Accident Year 2011 $ 19 $ 42 $ 55 $ 58 $ 60 $ 60 $ 56 $ 57 $ 57 $ 57 2012 5 32 34 35 35 36 37 37 36 2013 16 40 69 78 78 78 77 78 2014 7 30 38 36 38 38 39 2015 7 26 38 40 42 44 2016 5 37 45 45 43 2017 23 37 41 46 2018 5 25 34 2019 12 34 2020 4 Total $ 415 Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 351 Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2011 14 Liability for unallocated claim adjustment expenses for accident years presented 20 Total net liability for unpaid claim and claim adjustment expenses $ 385 |
Short-duration contracts reserve development | Net strengthening (releases) of prior accident year reserves is presented in the following table. For the years ended December 31 Calendar Year (In millions) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 (1) 2020 Total Accident Year 2011 $ 1 $ (5) $ (29) $ (12) $ (5) $ (4) $ (4) $ — $ — $ (58) 2012 2 (24) (28) (18) (7) (6) (1) (1) (83) 2013 1 (6) (9) (15) (4) (4) (1) (38) 2014 1 (30) (25) (9) (15) — (78) 2015 — (27) (25) (16) (5) (73) 2016 — (15) (25) (17) (57) 2017 (5) (12) (19) (36) 2018 (6) (17) (23) 2019 (7) (7) Total net development for the accident years presented above (68) (79) (67) Total net development for accident years prior to 2011 (2) (3) (2) Total unallocated claim adjustment expense development — (10) — Total $ (70) $ (92) $ (69) (1) Data presented for these calendar years is required supplemental information, which is unaudited. |
Commercial Auto | Commercial | |
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | |
Short-duration contracts net incurred claims and allocated claim adjustment expenses | Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year As of December 31, 2020 (In millions, except reported claims data) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 (1) 2020 IBNR Cumulative Number of Claims Accident Year 2011 $ 268 $ 281 $ 288 $ 302 $ 300 $ 294 $ 294 $ 294 $ 291 $ 292 $ — 47,907 2012 275 289 299 303 307 299 299 297 296 2 46,288 2013 246 265 265 249 245 245 241 241 2 39,429 2014 234 223 212 205 205 201 201 1 33,625 2015 201 199 190 190 183 181 3 30,426 2016 198 186 186 186 190 2 30,430 2017 199 198 200 221 7 30,913 2018 229 227 227 10 34,225 2019 257 266 48 36,779 2020 310 187 24,427 Total $ 2,425 $ 262 |
Short-duration contracts net cumulative paid claim adjustment expenses reconciliation of total liability for unpaid claim and claim adjustment expense | Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year (In millions) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 (1) 2020 Accident Year 2011 $ 79 $ 145 $ 199 $ 248 $ 274 $ 284 $ 287 $ 289 $ 289 $ 290 2012 78 160 220 259 282 285 290 291 291 2013 74 135 168 200 225 234 238 239 2014 64 102 137 166 187 196 198 2015 52 96 130 153 172 175 2016 52 93 126 154 175 2017 58 107 150 178 2018 66 128 175 2019 77 147 2020 71 Total $ 1,939 Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 486 Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2011 2 Liability for unallocated claim adjustment expenses for accident years presented 14 Total net liability for unpaid claim and claim adjustment expenses $ 502 |
Short-duration contracts reserve development | Net strengthening (releases) of prior accident year reserves is presented in the following table. For the years ended December 31 Calendar Year (In millions) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 (1) 2020 Total Accident Year 2011 $ 13 $ 7 $ 14 $ (2) $ (6) $ — $ — $ (3) $ 1 $ 24 2012 14 10 4 4 (8) — (2) (1) 21 2013 19 — (16) (4) — (4) — (5) 2014 (11) (11) (7) — (4) — (33) 2015 (2) (9) — (7) (2) (20) 2016 (12) — — 4 (8) 2017 (1) 2 21 22 2018 (2) — (2) 2019 9 9 Total net development for the accident years presented above (1) (20) 32 Total net development for accident years prior to 2011 1 (4) 1 Total unallocated claim adjustment expense development 1 (1) — Total $ 1 $ (25) $ 33 (1) Data presented for these calendar years is required supplemental information, which is unaudited. |
General Liability | Commercial | |
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | |
Short-duration contracts net incurred claims and allocated claim adjustment expenses | Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year As of December 31, 2020 (In millions, except reported claims data) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 (1) 2020 IBNR Cumulative Number of Claims Accident Year 2011 $ 591 $ 589 $ 631 $ 677 $ 676 $ 681 $ 670 $ 669 $ 667 $ 667 $ 21 39,405 2012 587 611 639 636 619 635 635 630 632 24 35,276 2013 650 655 650 655 613 623 620 623 27 33,649 2014 653 658 654 631 635 658 659 44 27,972 2015 581 576 574 589 600 602 38 24,005 2016 623 659 667 671 673 104 24,215 2017 632 632 632 634 136 21,781 2018 653 644 646 302 19,234 2019 680 682 453 17,294 2020 723 640 9,593 Total $ 6,541 $ 1,789 |
Short-duration contracts net cumulative paid claim adjustment expenses reconciliation of total liability for unpaid claim and claim adjustment expense | Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year (In millions) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 (1) 2020 Accident Year 2011 $ 28 $ 148 $ 273 $ 411 $ 517 $ 568 $ 602 $ 622 $ 638 $ 640 2012 28 132 247 374 454 510 559 579 597 2013 31 128 240 352 450 510 551 572 2014 31 119 247 376 481 547 569 2015 19 110 230 357 446 501 2016 32 163 279 407 481 2017 23 118 250 399 2018 33 107 228 2019 25 98 2020 23 Total $ 4,108 Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 2,433 Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2011 812 Liability for unallocated claim adjustment expenses for accident years presented 60 Total net liability for unpaid claim and claim adjustment expenses $ 3,305 |
Short-duration contracts reserve development | Net strengthening (releases) of prior accident year reserves is presented in the following table. For the years ended December 31 Calendar Year (In millions) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 (1) 2020 Total Accident Year 2011 $ (2) $ 42 $ 46 $ (1) $ 5 $ (11) $ (1) $ (2) $ — $ 76 2012 24 28 (3) (17) 16 — (5) 2 45 2013 5 (5) 5 (42) 10 (3) 3 (27) 2014 5 (4) (23) 4 23 1 6 2015 (5) (2) 15 11 2 21 2016 36 8 4 2 50 2017 — — 2 2 2018 (9) 2 (7) 2019 2 2 Total net development for the accident years presented above 36 19 16 Total net development for accident years prior to 2011 — 28 49 Total unallocated claim adjustment expense development (4) 7 — Total $ 32 $ 54 $ 65 (1) Data presented for these calendar years is required supplemental information, which is unaudited. |
Workers' Compensation | Commercial | |
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | |
Short-duration contracts net incurred claims and allocated claim adjustment expenses | Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year As of December 31, 2020 (In millions, except reported claims data) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 (1) 2020 IBNR Cumulative Number of Claims Accident Year 2011 $ 607 $ 641 $ 647 $ 659 $ 651 $ 676 $ 676 $ 674 $ 688 $ 698 $ 42 46,443 2012 601 627 659 669 678 673 671 668 663 62 42,685 2013 537 572 592 618 593 582 561 552 92 38,758 2014 467 480 479 452 450 446 439 97 33,488 2015 422 431 406 408 394 382 116 31,876 2016 426 405 396 382 366 121 31,967 2017 440 432 421 400 97 33,094 2018 450 440 428 129 34,800 2019 452 449 181 34,020 2020 477 312 24,980 Total $ 4,854 $ 1,249 |
Short-duration contracts net cumulative paid claim adjustment expenses reconciliation of total liability for unpaid claim and claim adjustment expense | Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year (In millions) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 (1) 2020 Accident Year 2011 $ 99 $ 249 $ 358 $ 438 $ 478 $ 522 $ 564 $ 571 $ 581 $ 583 2012 87 232 342 416 470 509 524 536 538 2013 80 213 300 370 417 419 411 414 2014 61 159 215 258 282 290 297 2015 51 131 180 212 231 243 2016 53 129 169 198 219 2017 63 151 207 243 2018 68 163 229 2019 71 169 2020 65 Total $ 3,000 Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 1,854 Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2011 1,984 Other (2) (15) Liability for unallocated claim adjustment expenses for accident years presented 49 Total net liability for unpaid claim and claim adjustment expenses $ 3,872 |
Short-duration contracts reserve development | Net strengthening (releases) of prior accident year reserves is presented in the following table. For the years ended December 31 Calendar Year (In millions) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 (1) 2020 Total Accident Year 2011 $ 34 $ 6 $ 12 $ (8) $ 25 $ — $ (2) $ 14 $ 10 $ 91 2012 26 32 10 9 (5) (2) (3) (5) 62 2013 35 20 26 (25) (11) (21) (9) 15 2014 13 (1) (27) (2) (4) (7) (28) 2015 9 (25) 2 (14) (12) (40) 2016 (21) (9) (14) (16) (60) 2017 (8) (11) (21) (40) 2018 (10) (12) (22) 2019 (3) (3) Total net development for the accident years presented above (32) (63) (75) Adjustment for development on a discounted basis — 3 2 Total net development for accident years prior to 2011 7 24 (23) Total unallocated claim adjustment expense development (7) 23 — Total $ (32) $ (13) $ (96) (1) Data presented for these calendar years is required supplemental information, which is unaudited. (2) Other includes the effect of discounting lifetime claim reserves. |
Excluding Hardy | International | |
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | |
Short-duration contracts net incurred claims and allocated claim adjustment expenses | Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year As of December 31, 2020 (In millions, except reported claims data) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 (1) 2020 IBNR Cumulative Number of Claims Accident Year 2011 $ 282 $ 283 $ 275 $ 254 $ 242 $ 235 $ 233 $ 230 $ 223 $ 221 $ (1) 24,526 2012 283 290 275 267 267 259 252 246 242 12 24,901 2013 305 307 299 278 274 265 256 252 10 23,808 2014 293 309 309 296 288 306 308 21 24,601 2015 307 324 322 304 298 301 35 22,675 2016 302 322 307 304 294 37 15,363 2017 318 385 407 399 99 16,086 2018 393 411 416 105 20,423 2019 365 379 124 16,890 2020 406 272 10,498 Total $ 3,218 $ 714 |
Short-duration contracts net cumulative paid claim adjustment expenses reconciliation of total liability for unpaid claim and claim adjustment expense | Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year (In millions) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 (1) 2020 Accident Year 2011 $ 47 $ 121 $ 144 $ 158 $ 172 $ 184 $ 193 $ 197 $ 200 $ 202 2012 46 119 153 175 191 204 214 218 220 2013 52 118 147 164 179 190 209 222 2014 54 128 157 175 193 214 250 2015 59 139 171 192 216 231 2016 70 139 167 191 204 2017 67 154 196 226 2018 96 177 226 2019 77 173 2020 63 Total $ 2,017 Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 1,201 Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2011 47 Liability for unallocated claim adjustment expenses for accident years presented 34 Total net liability for unpaid claim and claim adjustment expenses $ 1,282 |
Short-duration contracts reserve development | Net strengthening (releases) of prior accident year reserves is presented in the following table. For the years ended December 31 Calendar Year (In millions) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 (1) 2020 Total (2) Accident Year 2011 $ 1 $ (8) $ (21) $ (12) $ (7) $ (2) $ (3) $ (7) $ (2) $ (61) 2012 7 (15) (8) — (8) (7) (6) (4) (41) 2013 2 (8) (21) (4) (9) (9) (4) (53) 2014 16 — (13) (8) 18 2 15 2015 17 (2) (18) (6) 3 (6) 2016 20 (15) (3) (10) (8) 2017 67 22 (8) 81 2018 18 5 23 2019 14 14 (1) Data presented for these calendar years is required supplemental information, which is unaudited. |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Reinsurance Disclosures [Abstract] | |
Components of Reinsurance Receivables | The following table presents the amounts receivable from reinsurers. December 31 (In millions) 2020 2019 Reinsurance receivables related to insurance reserves: Ceded claim and claim adjustment expenses $ 4,005 $ 3,835 Ceded future policy benefits 263 226 Reinsurance receivables related to paid losses 210 143 Reinsurance receivables 4,478 4,204 Allowance for uncollectible reinsurance (21) (25) Reinsurance receivables, net of allowance for uncollectible reinsurance $ 4,457 $ 4,179 |
Reinsurance Recoverable, Credit Quality Indicator | The following table summarizes the outstanding amount of voluntary reinsurance receivables, gross of any collateral arrangements, by financial strength rating. (In millions) December 31, 2020 A- to A++ $ 2,820 B- to B++ 904 Insolvent 3 Total voluntary reinsurance outstanding balance (1) $ 3,727 (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 to the Consolidated Financial Statements for information regarding the LPT. The Company has also excluded receivables from involuntary pools. |
Components of Earned and Written Premiums | The effects of reinsurance on earned premiums and written premiums are presented in the following tables. (In millions) Direct Assumed Ceded Net Assumed/ 2020 Earned Premiums Property and casualty $ 11,547 $ 238 $ 4,640 $ 7,145 3.3 % Long term care 454 50 — 504 9.9 % Total earned premiums $ 12,001 $ 288 $ 4,640 $ 7,649 3.8 % 2019 Earned Premiums Property and casualty $ 11,021 $ 288 $ 4,401 $ 6,908 4.2 % Long term care 470 50 — 520 9.6 % Total earned premiums $ 11,491 $ 338 $ 4,401 $ 7,428 4.6 % 2018 Earned Premiums Property and casualty $ 10,857 $ 305 $ 4,380 $ 6,782 4.5 % Long term care 480 50 — 530 9.4 % Total earned premiums $ 11,337 $ 355 $ 4,380 $ 7,312 4.9 % (In millions) Direct Assumed Ceded Net Assumed/ 2020 Written Premiums Property and casualty $ 12,168 $ 229 $ 4,832 $ 7,565 3.0 % Long term care 444 50 — 494 10.1 % Total written premiums $ 12,612 $ 279 $ 4,832 $ 8,059 3.5 % 2019 Written Premiums Property and casualty $ 11,421 $ 281 $ 4,569 $ 7,133 3.9 % Long term care 473 50 — 523 9.6 % Total written premiums $ 11,894 $ 331 $ 4,569 $ 7,656 4.3 % 2018 Written Premiums Property and casualty $ 11,094 $ 310 $ 4,583 $ 6,821 4.5 % Long term care 474 50 — 524 9.5 % Total written premiums $ 11,568 $ 360 $ 4,583 $ 7,345 4.9 % |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of debt instruments | Debt is composed of the following long term obligations. December 31 (In millions) 2020 2019 Senior notes of CNAF: 5.750%, face amount of $400, due August 15, 2021 (1) $ — $ 399 3.950%, face amount of $550, due May 15, 2024 548 548 4.500%, face amount of $500, due March 1, 2026 499 498 3.450%, face amount of $500, due August 15, 2027 496 496 3.900%, face amount of $500, due May 1, 2029 496 496 2.050%, face amount of $500, due August 15, 2030 495 — Debenture of CNAF, 7.250%, face amount of $243, due November 15, 2023 242 242 Total $ 2,776 $ 2,679 (1) The Company redeemed these notes in the third quarter of 2020. |
Maturity of debt | The combined aggregate maturities for debt as of December 31, 2020 are presented in the following table. (In millions) 2021 $ — 2022 — 2023 243 2024 550 2025 — Thereafter 2,000 Less: discount (17) Total $ 2,776 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Funded status | The following table presents a reconciliation of benefit obligations and plan assets. Pension Benefits Postretirement Benefits (In millions) 2020 2019 2020 2019 Benefit obligation as of January 1 $ 2,661 $ 2,466 $ 8 $ 9 Changes in benefit obligation: Interest cost 80 100 — — Participants' contributions — — 2 4 Actuarial (gain) loss 205 261 2 1 Benefits paid (173) (169) (5) (6) Foreign currency translation and other 3 3 — — Settlements (7) — — — Benefit obligation as of December 31 2,769 2,661 7 8 Fair value of plan assets as of January 1 2,285 2,025 — — Change in plan assets: Actual return on plan assets 295 292 — — Company contributions 16 134 3 2 Participants' contributions — — 2 4 Benefits paid (173) (169) (5) (6) Foreign currency translation and other 4 3 — — Settlements (7) — — — Fair value of plan assets as of December 31 2,420 2,285 — — Funded status $ (349) $ (376) $ (7) $ (8) Amounts recognized on the Consolidated Balance Sheets as of December 31: Other assets $ 2 $ 5 $ — $ — Other liabilities (351) (381) (7) (8) Net amount recognized $ (349) $ (376) $ (7) $ (8) Amounts recognized in Accumulated other comprehensive income, not yet recognized in net periodic cost (benefit): Net actuarial (gain) loss $ 1,073 $ 1,056 $ — $ (2) Net amount recognized $ 1,073 $ 1,056 $ — $ (2) |
Components of net periodic cost (benefit) | The components of net periodic pension cost (benefit) are presented in the following table. Years ended December 31 (In millions) 2020 2019 2018 Net periodic pension cost (benefit) Interest cost on projected benefit obligation $ 80 $ 100 $ 93 Expected return on plan assets (155) (142) (159) Amortization of net actuarial (gain) loss 45 39 37 Settlement loss 3 — 6 Total net periodic pension cost (benefit) $ (27) $ (3) $ (23) |
Schedule of amounts recognized in Other comprehensive income | The amounts recognized in Other comprehensive income are presented in the following table. Years ended December 31 (In millions) 2020 2019 2018 Pension and postretirement benefits Amounts arising during the period $ (67) $ (112) $ (41) Settlement 3 — 6 Reclassification adjustment relating to prior service credit — — (2) Reclassification adjustment relating to actuarial loss 45 39 36 Total increase (decrease) in Other comprehensive income $ (19) $ (73) $ (1) |
Actuarial assumptions for benefit obligations and for net cost or benefit | Actuarial assumptions used for the CNA Retirement Plan and CNA Health and Group Benefits Program to determine benefit obligations are presented in the following table. The interest crediting rate is the weighted average interest rate applied to the individual pension balances for employees who elected to cease accruals effective December 31, 1999. December 31 2020 2019 Pension benefits Discount rate 2.350 % 3.150 % Interest crediting rate 3.000 5.000 Postretirement benefits Discount rate 1.600 % 2.300 % Actuarial assumptions used for the CNA Retirement Plan and CNA Health and Group Benefits Program to determine net cost or benefit are presented in the following table. Years ended December 31 2020 2019 2018 Pension benefits Discount rate 3.150 % 4.250 % 3.550 % Expected long term rate of return 7.250 7.500 7.500 Interest crediting rate 5.000 5.000 5.000 Postretirement benefits Discount rate 2.300 % 3.550 % 2.750 % |
Fair value of plan assets measured on a recurring basis | Pension plan assets measured at fair value on a recurring basis as well as cash are presented in the following tables. December 31, 2020 (In millions) Level 1 Level 2 Level 3 Total Assets Fixed maturity securities: Corporate bonds and other $ — $ 643 $ 9 $ 652 States, municipalities and political subdivisions — 32 — 32 Asset-backed — 98 — 98 Total fixed maturity securities — 773 9 782 Equity securities 666 137 — 803 Short term investments 20 38 — 58 Other assets — 8 — 8 Cash 13 — — 13 Total assets measured at fair value $ 699 $ 956 $ 9 1,664 Total limited partnerships measured at net asset value (1) 756 Total $ 2,420 December 31, 2019 (In millions) Level 1 Level 2 Level 3 Total Assets Fixed maturity securities: Corporate bonds and other $ — $ 587 $ 10 $ 597 States, municipalities and political subdivisions — 51 — 51 Asset-backed — 154 — 154 Total fixed maturity securities — 792 10 802 Equity securities 458 128 — 586 Short term investments 55 7 — 62 Other assets — 9 — 9 Cash 13 — — 13 Total assets measured at fair value $ 526 $ 936 $ 10 1,472 Total limited partnerships measured at net asset value (1) 813 Total $ 2,285 (1) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table for these investments are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Plan's Statement of Financial Position. |
Schedule of expected benefit payments | The table below presents the estimated future minimum benefit payments to participants as of December 31, 2020. (In millions) Pension Benefits Postretirement Benefits 2021 $ 179 $ 1 2022 180 1 2023 180 1 2024 177 1 2025 176 — 2026-2030 823 2 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Restricted shares, performance-based restricted share units and performance share unit activity | The following table presents activity for non-vested RSUs and performance share units under the Plan in 2020. Number of Awards Weighted Average Grant Date Fair Value Balance as of January 1, 2020 2,115,186 $ 46.25 Awards granted 1,316,407 34.36 Awards vested (806,589) 44.31 Awards forfeited, canceled or expired (248,760) 42.57 Performance-based adjustment 62,897 34.45 Balance as of December 31, 2020 2,439,141 40.56 |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Intangible Assets, Gross (Excluding Goodwill) [Abstract] | |
Schedule of Other Intangible Assets | Other intangible assets are presented in the following table. December 31 2020 2019 (In millions) Economic Useful Life Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Finite-lived intangible assets: Trade name 8 years $ 7 $ 7 $ 7 $ 6 Distribution channel 15 years 11 6 11 5 Total finite-lived intangible assets 18 13 18 11 Indefinite-lived intangible assets: Syndicate capacity 48 46 Agency force 16 16 Total indefinite-lived intangible assets 64 62 Total other intangible assets $ 82 $ 13 $ 80 $ 11 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Assets and liabilities | The following table presents operating lease ROU assets and lease liabilities. (In millions) December 31, 2020 December 31, 2019 Operating lease ROU assets $ 199 $ 220 Operating lease liabilities 279 301 |
Operating lease, liability, maturity | The following table presents the maturities of operating lease liabilities (In millions) December 31, 2020 2021 $ 44 2022 41 2023 36 2024 29 2025 24 Thereafter 163 Total lease payments 337 Less: Discount (58) Total operating lease liabilities $ 279 |
Lease cost | The following table presents the weighted average remaining lease term for operating leases and weighted average discount rate used in calculating operating lease ROU assets. December 31, 2020 December 31, 2019 Weighted average remaining lease term 10.3 years 10.8 years Weighted average discount rate 3.4 % 3.4 % |
Stockholders' Equity and Stat_2
Stockholders' Equity and Statutory Accounting Practices (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity and Statutory Accounting Practices [Abstract] | |
Combined statutory capital and surplus and net income (loss) | Combined statutory capital and surplus and statutory net income (loss) for the Combined Continental Casualty Companies are presented in the table below, determined in accordance with accounting practices prescribed or permitted by insurance and/or other regulatory authorities Statutory Capital and Surplus Statutory Net Income (Loss) December 31 Years ended December 31 (In millions) 2020 (1) 2019 2020 (1) 2019 2018 Combined Continental Casualty Companies $ 10,708 $ 10,787 $ 800 $ 1,062 $ 1,405 (1) Information derived from the statutory-basis financial statements to be filed with insurance regulators. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) by Component (Tables) | 12 Months Ended |
Dec. 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 (43) 763 (53) 47 714 Amounts reclassified from accumulated other comprehensive income (loss) net of tax (expense) benefit of $12, $(12), $10, $— and $10 (43) 43 (38) — (38) Other comprehensive income (loss) net of tax (expense) benefit of $—, $(189), $4, $— and $(185) — 720 (15) 47 752 Balance as of December 31, 2020 $ — $ 1,745 $ (848) $ (94) $ 803 (In millions) Net unrealized gains (losses) on investments with OTTI 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, 2019 $ 16 $ 61 $ (775) $ (180) $ (878) Other comprehensive income (loss) before reclassifications (13) 957 (89) 39 894 Amounts reclassified from accumulated other comprehensive income (loss) net of tax (expense) benefit of $3, $(1), $8, $— and $10 (12) 8 (31) — (35) Other comprehensive income (loss) net of tax (expense) benefit of $—, $(255), $15, $— and $(240) (1) 949 (58) 39 929 Balance as of December 31, 2019 $ 15 $ 1,010 $ (833) $ (141) $ 51 (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 balances previously reported in the Net unrealized gains (losses) on investments with OTTI losses column are now reported in the Net unrealized gains (losses) on other investments column. |
Reclassification out of Accumulated Other Comprehensive Income | Amounts reclassified from Accumulated other comprehensive income (loss) shown above are reported in Net income (loss) as follows: Component of AOCI Consolidated Statements of Operations Line Item Affected by Reclassifications Net unrealized gains (losses) on investments with 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) | 12 Months Ended |
Dec. 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. Year ended December 31, 2020 International Life & Corporate (In millions) Eliminations Total Net written premiums $ 3,040 $ 3,565 $ 961 $ 494 $ — $ (1) $ 8,059 Operating revenues Net earned premiums $ 2,883 $ 3,323 $ 940 $ 504 $ — $ (1) $ 7,649 Net investment income 449 565 58 851 12 — 1,935 Non-insurance warranty revenue 1,252 — — — — — 1,252 Other revenues 1 25 — — 5 (5) 26 Total operating revenues 4,585 3,913 998 1,355 17 (6) 10,862 Claims, benefits and expenses Net incurred claims and benefits 1,792 2,436 629 1,286 6 — 6,149 Policyholders’ dividends 3 18 — — — — 21 Amortization of deferred acquisition costs 621 592 197 — — — 1,410 Non-insurance warranty expense 1,159 — — — — — 1,159 Other insurance related expenses 280 505 136 109 (1) (1) 1,028 Other expenses 50 34 (7) 7 141 (5) 220 Total claims, benefits and expenses 3,905 3,585 955 1,402 146 (6) 9,987 Core income (loss) before income tax 680 328 43 (47) (129) — 875 Income tax (expense) benefit on core income (loss) (145) (67) (5) 56 21 — (140) Core income (loss) $ 535 $ 261 $ 38 $ 9 $ (108) $ — 735 Net investment gains (losses) (54) Income tax (expense) benefit on net investment gains (losses) 9 Net investment gains (losses), after tax (45) Net income (loss) $ 690 December 31, 2020 (In millions) Reinsurance receivables $ 886 $ 922 $ 302 $ 390 $ 1,978 $ — $ 4,478 Insurance receivables 1,052 1,254 328 4 2 — 2,640 Deferred acquisition costs 330 281 97 — — — 708 Goodwill 117 — 31 — — — 148 Deferred non-insurance warranty acquisition expense 3,068 — — — — — 3,068 Insurance reserves Claim and claim adjustment expenses 5,748 9,041 2,091 3,743 2,083 — 22,706 Unearned premiums 2,635 1,824 546 114 — — 5,119 Future policy benefits — — — 13,318 — — 13,318 Deferred non-insurance warranty revenue 4,023 — — — — — 4,023 Year ended December 31, 2019 International Life & Corporate (In millions) Eliminations Total Net written premiums $ 2,848 $ 3,315 $ 971 $ 523 $ 1 $ (2) $ 7,656 Operating revenues Net earned premiums $ 2,773 $ 3,162 $ 974 $ 520 $ 1 $ (2) $ 7,428 Net investment income 556 654 63 820 25 — 2,118 Non-insurance warranty revenue 1,161 — — — — — 1,161 Other revenues 1 29 — — 6 (5) 31 Total operating revenues 4,491 3,845 1,037 1,340 32 (7) 10,738 Claims, benefits and expenses Net incurred claims and benefits 1,595 2,130 624 1,416 18 — 5,783 Policyholders’ dividends 5 18 — — — — 23 Amortization of deferred acquisition costs 610 537 236 — — — 1,383 Non-insurance warranty expense 1,082 — — — — — 1,082 Other insurance related expenses 292 505 130 115 (2) (2) 1,038 Other expenses 48 32 8 8 144 (5) 235 Total claims, benefits and expenses 3,632 3,222 998 1,539 160 (7) 9,544 Core income (loss) before income tax 859 623 39 (199) (128) — 1,194 Income tax (expense) benefit on core income (loss) (188) (134) (9) 90 26 — (215) Core income (loss) $ 671 $ 489 $ 30 $ (109) $ (102) $ — 979 Net investment gains (losses) 29 Income tax (expense) benefit on net investment gains (losses) (8) Net investment gains (losses), after tax 21 Net income (loss) $ 1,000 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 Year ended December 31, 2018 Life & Corporate (In millions) International Eliminations Total Net written premiums $ 2,744 $ 3,060 $ 1,018 $ 524 $ — $ (1) $ 7,345 Operating revenues Net earned premiums $ 2,732 $ 3,050 $ 1,001 $ 530 $ — $ (1) $ 7,312 Net investment income 439 500 57 801 20 — 1,817 Non-insurance warranty revenue 1,007 — — — — — 1,007 Other revenues 2 28 1 2 19 (2) 50 Total operating revenues 4,180 3,578 1,059 1,333 39 (3) 10,186 Claims, benefits and expenses Net incurred claims and benefits 1,526 2,053 699 1,218 51 — 5,547 Policyholders’ dividends 5 20 — — — — 25 Amortization of deferred acquisition costs 599 505 231 — — — 1,335 Non-insurance warranty expense 923 — — — — — 923 Other insurance related expenses 279 505 135 122 (1) (1) 1,039 Other expenses 46 43 14 7 193 (2) 301 Total claims, benefits and expenses 3,378 3,126 1,079 1,347 243 (3) 9,170 Core income (loss) before income tax 802 452 (20) (14) (204) — 1,016 Income tax (expense) benefit on core income (loss) (173) (95) 1 57 39 — (171) Core income (loss) $ 629 $ 357 $ (19) $ 43 $ (165) $ — 845 Net investment gains (losses) (52) Income tax (expense) benefit on net investment gains (losses) 14 Net investment gains (losses), after tax (38) Net deferred tax asset remeasurement 6 Net income (loss) $ 813 |
Revenues by line of business | The following table presents operating revenues by line of business for each reportable segment. Years ended December 31 (In millions) 2020 2019 2018 Specialty Management & Professional Liability $ 2,577 $ 2,572 $ 2,440 Surety 596 596 571 Warranty & Alternative Risks 1,412 1,323 1,169 Specialty revenues 4,585 4,491 4,180 Commercial Middle Market 1,447 1,439 1,306 Construction (1) 1,120 1,043 955 Small Business 482 504 501 Other Commercial 864 859 816 Commercial revenues 3,913 3,845 3,578 International Canada 291 277 255 Europe 389 363 363 Hardy 318 397 441 International revenues 998 1,037 1,059 Life & Group revenues 1,355 1,340 1,333 Corporate & Other revenues 17 32 39 Eliminations (6) (7) (3) Total operating revenues 10,862 10,738 10,186 Net investment gains (losses) (54) 29 (52) Total revenues $ 10,808 $ 10,767 $ 10,134 (1) Effective January 1, 2020, the Construction line of business is presented separately in the Commercial segment to better align with the Company's underwriting expertise and the manner in which the products are sold. Prior period information has been conformed to the new line of business presentation. |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Data [Abstract] | |
Schedule of quarterly financial information | The following tables present unaudited quarterly financial data. 2020 (In millions, except per share data) First Second Third Fourth Full Year Revenues $ 2,291 $ 2,766 $ 2,820 $ 2,931 $ 10,808 Net income (loss) (1)(2)(3) (61) 151 213 387 690 Basic earnings (loss) per share (5) (0.23) 0.56 0.79 1.42 2.54 Diluted earnings (loss) per share (5) $ (0.23) $ 0.55 $ 0.79 $ 1.42 $ 2.53 2019 (In millions, except per share data) First Second Third Fourth Full Year Revenues $ 2,695 $ 2,610 $ 2,685 $ 2,777 $ 10,767 Net income (loss) (4) 342 278 107 273 1,000 Basic earnings (loss) per share (5) 1.26 1.03 0.39 1.00 3.68 Diluted earnings (loss) per share (5) $ 1.25 $ 1.02 $ 0.39 $ 1.00 $ 3.67 (1) Net income (loss) in the first quarter of 2020 included pretax net investment losses of $216 million and a pretax loss on limited partnership and common stock investments of $125 million. (2) Net income (loss) in the second quarter of 2020 included pretax net catastrophe losses of $301 million, including $182 million related to the COVID-19 pandemic. (3) Net income (loss) in the third quarter of 2020 included pretax net catastrophe losses of $160 million and a $74 million pretax charge related to recognition of an active life reserve premium deficiency as a result of the third quarter 2020 GPV. Catastrophe losses were driven by severe weather related events, primarily Hurricanes Laura, Isaias and Sally, and the Midwest derecho. (4) Net income (loss) in the third quarter of 2019 included a $216 million pretax charge related to recognition of an active life reserve premium deficiency as a result of the third quarter 2019 GPV. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2020 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Retained earnings | $ 9,081 | $ 9,348 | |||||
Mortgage loans on real estate commercial and consumer allowance for credit loss | 26 | 0 | |||||
Deferred income taxes | 66 | 199 | |||||
Marketable securities fixed maturities allowance for credit loss | 40 | 0 | |||||
Stockholders' equity attributable to parent | 12,707 | 12,215 | $ 11,217 | ||||
Anticipated amounts due from insureds related to losses under deductible policies | $ 1,200 | $ 1,200 | |||||
Structured settlement annuities, interest rate, low end | 6.50% | ||||||
Structured settlement annuities, interest rate, high end | 7.10% | ||||||
Discounted reserves for unfunded structured settlements | $ 520 | $ 497 | |||||
Discounted reserves for unfunded structure settlements, discount amount | 657 | 724 | |||||
Amount of interest recognized on the discounted reserves of unfunded structured settlements | $ 35 | $ 36 | 40 | ||||
Interest rates at which workers' compensation lifetime claim reserves are discounted at | 3.50% | 3.50% | |||||
Workers' compensation liability | $ 258 | $ 293 | |||||
Discounted reserves for workers’ compensation lifetime claim reserves, discount amount | 113 | 135 | |||||
Amount of interest accretion recognized on the discounted reserves of workers’ compensation lifetime claim reserves | $ 15 | $ 21 | $ 16 | ||||
Long term care claim reserves weighted average discounted interest rate | 5.80% | 5.90% | |||||
Discounted reserves for long term care claim reserves | $ 2,700 | $ 2,700 | |||||
Premium deficiency | 439 | $ 462 | |||||
Premium deficiency and future policy benefit | $ 74 | $ 216 | $ 74 | ||||
Minimum interest rate used to calculate reserves for long term care products | 5.40% | 5.70% | |||||
Liability balance for guaranty fund | $ 82 | $ 84 | |||||
Percentage of billed receivables compared to total reinsurance receivable | 5.00% | ||||||
Policyholder dividends, rate on policy earnings | 1.00% | 1.00% | 1.00% | ||||
Increase (decrease) in shadow adjustment, net of tax | $ 575 | $ 1,120 | |||||
Reduction of net unrealized gains on investments included in AOCI due to shadow adjustments | 2,773 | 2,198 | |||||
Foreign currency transaction gain (loss), before tax | $ 13 | $ 1 | $ 1 | ||||
Operating lease, right-of-use asset, statement of financial position [Extensible List] | us-gaap:OtherAssets | us-gaap:OtherAssets | |||||
Operating lease, liability, statement of financial position [Extensible List] | us-gaap:OtherLiabilities | us-gaap:OtherLiabilities | |||||
Weighted average number diluted shares outstanding adjustment (in shares) | 772 | 961 | 943 | ||||
Antidilutive securities excluded from computation of earnings per share, amount | 8 | 1 | 6 | ||||
Interest paid, net | $ 124 | $ 136 | $ 145 | ||||
Income taxes paid | $ 108 | 255 | 308 | ||||
Furniture and Fixtures | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Property, plant and equipment, useful life | 7 years | ||||||
Office Equipment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Property, plant and equipment, useful life | 5 years | ||||||
Computer Software, Intangible Asset | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Property, plant and equipment, useful life | 10 years | ||||||
Minimum | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Warranty coverage term | 1 month | ||||||
Requisite service period for stock- based compensation expense | 3 years | ||||||
Minimum | Computer Software, Intangible Asset | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Property, plant and equipment, useful life | 3 years | ||||||
Maximum | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Warranty coverage term | 10 years | ||||||
Maximum | Computer Software, Intangible Asset | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Property, plant and equipment, useful life | 5 years | ||||||
ASU 2016-13 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Retained earnings | $ (5) | ||||||
Mortgage loans on real estate commercial and consumer allowance for credit loss | 7 | ||||||
Deferred income taxes | 2 | ||||||
Marketable securities fixed maturities allowance for credit loss | $ 6 | ||||||
CNAF Consolidated | Loews | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Noncontrolling interest, ownership percentage by parent | 89.60% | ||||||
Retained Earnings | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Stockholders' equity attributable to parent | $ 9,081 | $ 9,348 | $ 9,277 | $ 9,414 | |||
Retained Earnings | Cumulative effect adjustments from changes in accounting guidance, net of tax | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Stockholders' equity attributable to parent | $ (5) | (50) | |||||
Retained Earnings | ASU 2016-01 | Cumulative effect adjustments from changes in accounting guidance, net of tax | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Stockholders' equity attributable to parent | 28 | ||||||
Retained Earnings | ASU 2014-09 | Cumulative effect adjustments from changes in accounting guidance, net of tax | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Stockholders' equity attributable to parent | $ (66) |
Investments (Net investment inc
Investments (Net investment income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net Investment Income [Line Items] | |||
Gross investment income | $ 1,999 | $ 2,181 | $ 1,878 |
Investment expense | (64) | (63) | (61) |
Net investment income | 1,935 | 2,118 | 1,817 |
Fixed maturity securities | |||
Net Investment Income [Line Items] | |||
Gross investment income | 1,728 | 1,817 | 1,795 |
Equity securities | |||
Net Investment Income [Line Items] | |||
Gross investment income | 65 | 85 | 18 |
Limited partnership investments | |||
Net Investment Income [Line Items] | |||
Gross investment income | 121 | 180 | (22) |
Mortgage loans | |||
Net Investment Income [Line Items] | |||
Gross investment income | 57 | 51 | 50 |
Short term investments | |||
Net Investment Income [Line Items] | |||
Gross investment income | 9 | 34 | 26 |
Trading portfolio | |||
Net Investment Income [Line Items] | |||
Gross investment income | 18 | 9 | 7 |
Other | |||
Net Investment Income [Line Items] | |||
Gross investment income | $ 1 | $ 5 | $ 4 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Gain (Loss) on Securities [Line Items] | |||
Non-income producing fixed maturity securities | $ 1,000,000 | $ 1,000,000 | |
Investments that exceed ten percent of stockholders' equity | 0 | 0 | |
Mortgage loan losses due to changes in expected credit losses | 21,000,000 | 0 | $ 0 |
Limited partnership investments | 1,619,000,000 | 1,752,000,000 | |
Undistributed earnings of limited partnership investments | $ 235,000,000 | $ 229,000,000 | |
Percentage of limited partnerships reported on a current basis | 49.00% | ||
Percentage of limited partnerships reported on a one month lag | 10.00% | ||
Percentage of limited partnerships employing hedge fund strategies focused on fixed income and equity investments | 51.00% | 61.00% | |
Limited partnerships invested in private debt and equity | 40.00% | 33.00% | |
Percentage of equity related limited partnership hedge fund strategies | 55.00% | ||
Percentage of multistrategy approach limited partnership hedge fund strategies | 26.00% | ||
Percentage of distressed investments limited partnership hedge fund strategies | 14.00% | ||
Percentage of fixed income limited partnership hedge fund strategies | 5.00% | ||
Carrying value of ten largest limited partnerships | $ 775,000,000 | $ 893,000,000 | |
Carrying value of limited partnerships as percentage of aggregate partnership equity | 2.00% | 2.00% | |
Income as percentage of change in partnership equity for all limited partnerships | 2.00% | 2.00% | 3.00% |
Obligation to return cash | $ 0 | $ 0 | |
Notional value | 190,000,000 | 182,000,000 | |
Derivative liability, fair value, gross liability | (19,000,000) | (7,000,000) | |
Commitments to purchase or fund privately placed debt securities | 1,210,000,000 | ||
Commitments to sell various privately placed debt securities | 85,000,000 | ||
Carrying value of securities deposited under requirements of regulatory authorities | 3,000,000,000 | 2,700,000,000 | |
Cash and securities deposited as collateral for letters of credit | 1,100,000,000 | 1,100,000,000 | |
5.750% face amount of $400, due August 15, 2021 | Senior Notes | |||
Gain (Loss) on Securities [Line Items] | |||
Realized investment gains (losses) | (20,000,000) | ||
Face amount | 400,000,000 | ||
5.875% face amount of $500, due August 15, 2020 | Senior Notes | |||
Gain (Loss) on Securities [Line Items] | |||
Realized investment gains (losses) | (21,000,000) | ||
Face amount | 500,000,000 | ||
Common Stock | |||
Gain (Loss) on Securities [Line Items] | |||
Equity securities, FV-NI, gain (loss) | 34,000,000 | 38,000,000 | |
Non-redeemable preferred stock | |||
Gain (Loss) on Securities [Line Items] | |||
Equity securities, FV-NI, gain (loss) | (3,000,000) | 66,000,000 | |
Fixed maturity securities | |||
Gain (Loss) on Securities [Line Items] | |||
Interest receivable | 371,000,000 | ||
OCI, debt securities, available-for-sale, gain (loss), after adjustment, before tax | 1,637,000,000 | $ 2,620,000,000 | $ (1,811,000,000) |
Mortgage loans | |||
Gain (Loss) on Securities [Line Items] | |||
Interest receivable | $ 4,000,000 |
Investments (Net realized inves
Investments (Net realized investment gains (losses)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fixed maturity securities: | |||
Gross gains | $ 220 | $ 125 | $ 168 |
Gross losses | (220) | (131) | (164) |
Net investment gains (losses) on fixed maturity securities | 0 | (6) | 4 |
Equity securities | (3) | 66 | (74) |
Derivatives | (10) | (11) | 9 |
Mortgage loans | (21) | 0 | 0 |
Short term investments and other | (20) | (20) | 9 |
Net investment gains (losses) | $ (54) | $ 29 | $ (52) |
Investments (Allowance on avail
Investments (Allowance on available-for-sale securities with credit impairments and PCD assets activity) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Allowance for credit losses: | |
Beginning balance | $ 0 |
Additions to the allowance for credit losses: | |
Securities for which credit losses were not previously recorded | 79 |
Available-for-sale securities accounted for as PCD assets | 5 |
Reductions to the allowance for credit losses: | |
Securities sold during the period (realized) | 22 |
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 | 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 | (27) |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Ending Balance | 40 |
Impact of adopting ASC 326 | |
Allowance for credit losses: | |
Beginning balance | 6 |
Corporate and other bonds | |
Allowance for credit losses: | |
Beginning balance | 0 |
Additions to the allowance for credit losses: | |
Securities for which credit losses were not previously recorded | 67 |
Available-for-sale securities accounted for as PCD assets | 5 |
Reductions to the allowance for credit losses: | |
Securities sold during the period (realized) | 22 |
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 | 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 | (32) |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Ending Balance | 23 |
Corporate and other bonds | Impact of adopting ASC 326 | |
Allowance for credit losses: | |
Beginning balance | 6 |
Asset-backed | |
Allowance for credit losses: | |
Beginning balance | 0 |
Additions to the allowance for credit losses: | |
Securities for which credit losses were not previously recorded | 12 |
Available-for-sale securities accounted for as PCD assets | 0 |
Reductions to the allowance for credit losses: | |
Securities sold during the period (realized) | 0 |
Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis | 0 |
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 | 5 |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Ending Balance | 17 |
Asset-backed | Impact of adopting ASC 326 | |
Allowance for credit losses: | |
Beginning balance | $ 0 |
Investments (Components of othe
Investments (Components of other-than-temporary impairment losses recognized in earnings) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Line Items] | |||
Impairment losses recognized in earnings | $ 111 | $ 44 | $ 21 |
Corporate and other bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Impairment losses recognized in earnings | 87 | 33 | 12 |
Asset-backed | |||
Debt Securities, Available-for-sale [Line Items] | |||
Impairment losses recognized in earnings | $ 24 | $ 11 | $ 9 |
Investments (Summary of fixed m
Investments (Summary of fixed maturity and equity securities) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | $ 38,926 | $ 38,106 |
Gross Unrealized Gains | 5,795 | 4,126 |
Gross Unrealized Losses | 77 | 45 |
Allowance for Credit Losses | 40 | 0 |
Estimated Fair Value | 44,604 | 42,187 |
Total fixed maturity securities trading | ||
Debt securities, amortized cost | 38,953 | 38,126 |
Total fixed maturity securities | 44,631 | 42,207 |
Corporate and other bonds | ||
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | 20,792 | 19,789 |
Gross Unrealized Gains | 3,578 | 2,292 |
Gross Unrealized Losses | 22 | 32 |
Allowance for Credit Losses | 23 | 0 |
Estimated Fair Value | 24,325 | 22,049 |
Unrealized OTTI Losses (Gains) | 0 | |
Total fixed maturity securities trading | ||
Total fixed maturity securities | 25,234 | 22,728 |
States, municipalities and political subdivisions | ||
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | 9,729 | 9,093 |
Gross Unrealized Gains | 1,863 | 1,559 |
Gross Unrealized Losses | 0 | 0 |
Allowance for Credit Losses | 0 | |
Estimated Fair Value | 11,592 | 10,652 |
Unrealized OTTI Losses (Gains) | 0 | |
Total fixed maturity securities trading | ||
Total fixed maturity securities | 11,592 | 10,652 |
Residential mortgage-backed | ||
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | 3,442 | 4,387 |
Gross Unrealized Gains | 146 | 133 |
Gross Unrealized Losses | 1 | 1 |
Allowance for Credit Losses | 0 | |
Estimated Fair Value | 3,587 | 4,519 |
Unrealized OTTI Losses (Gains) | (17) | |
Commercial mortgage-backed | ||
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | 1,933 | 2,265 |
Gross Unrealized Gains | 93 | 86 |
Gross Unrealized Losses | 42 | 5 |
Allowance for Credit Losses | 17 | |
Estimated Fair Value | 1,967 | 2,346 |
Unrealized OTTI Losses (Gains) | 1 | |
Other asset-backed | ||
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | 2,179 | 1,925 |
Gross Unrealized Gains | 81 | 41 |
Gross Unrealized Losses | 9 | 4 |
Allowance for Credit Losses | 0 | |
Estimated Fair Value | 2,251 | 1,962 |
Unrealized OTTI Losses (Gains) | (3) | |
Asset-backed | ||
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | 7,554 | 8,577 |
Gross Unrealized Gains | 320 | 260 |
Gross Unrealized Losses | 52 | 10 |
Allowance for Credit Losses | 17 | 0 |
Estimated Fair Value | 7,805 | 8,827 |
Unrealized OTTI Losses (Gains) | (19) | |
Total fixed maturity securities trading | ||
Total fixed maturity securities | 7,805 | 8,827 |
U.S. Treasury and obligations of government-sponsored enterprises | ||
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | 339 | 146 |
Gross Unrealized Gains | 2 | 1 |
Gross Unrealized Losses | 3 | 2 |
Allowance for Credit Losses | 0 | |
Estimated Fair Value | 338 | 145 |
Unrealized OTTI Losses (Gains) | 0 | |
Foreign government | ||
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | 512 | 491 |
Gross Unrealized Gains | 32 | 14 |
Gross Unrealized Losses | 0 | 1 |
Allowance for Credit Losses | 0 | |
Estimated Fair Value | 544 | 504 |
Unrealized OTTI Losses (Gains) | 0 | |
Redeemable preferred stock | ||
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | 0 | 10 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Allowance for Credit Losses | 0 | |
Estimated Fair Value | 0 | 10 |
Unrealized OTTI Losses (Gains) | 0 | |
Fixed maturity securities | ||
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | 38,926 | 38,106 |
Gross Unrealized Gains | 5,795 | 4,126 |
Gross Unrealized Losses | 77 | 45 |
Allowance for Credit Losses | 40 | |
Estimated Fair Value | 44,604 | 42,187 |
Unrealized OTTI Losses (Gains) | (19) | |
Total fixed maturity securities trading | ||
Total fixed maturity securities trading | ||
Cost or amortized cost, trading securities | 27 | 20 |
Estimated fair value, trading securities | $ 27 | $ 20 |
Investments (Securities in a gr
Investments (Securities in a gross unrealized loss position) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value, Less than 12 months | $ 1,666 | $ 2,148 |
Gross Unrealized Losses, Less than 12 Months | 74 | 31 |
Estimated Fair Value, 12 Months or Longer | 64 | 272 |
Gross Unrealized Losses, 12 Months or Longer | 3 | 14 |
Estimated Fair Value, Total | 1,730 | 2,420 |
Gross Unrealized Losses, Total | 77 | 45 |
Corporate and other bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value, Less than 12 months | 609 | 914 |
Gross Unrealized Losses, Less than 12 Months | 21 | 21 |
Estimated Fair Value, 12 Months or Longer | 12 | 186 |
Gross Unrealized Losses, 12 Months or Longer | 1 | 11 |
Estimated Fair Value, Total | 621 | 1,100 |
Gross Unrealized Losses, Total | 22 | 32 |
States, municipalities and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value, Less than 12 months | 33 | 34 |
Gross Unrealized Losses, Less than 12 Months | 0 | 0 |
Estimated Fair Value, 12 Months or Longer | 0 | 0 |
Gross Unrealized Losses, 12 Months or Longer | 0 | 0 |
Estimated Fair Value, Total | 33 | 34 |
Residential mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value, Less than 12 months | 71 | 249 |
Gross Unrealized Losses, Less than 12 Months | 1 | 1 |
Estimated Fair Value, 12 Months or Longer | 11 | 30 |
Gross Unrealized Losses, 12 Months or Longer | 0 | 0 |
Estimated Fair Value, Total | 82 | 279 |
Gross Unrealized Losses, Total | 1 | 1 |
Commercial mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value, Less than 12 months | 533 | 381 |
Gross Unrealized Losses, Less than 12 Months | 40 | 3 |
Estimated Fair Value, 12 Months or Longer | 28 | 20 |
Gross Unrealized Losses, 12 Months or Longer | 2 | 2 |
Estimated Fair Value, Total | 561 | 401 |
Gross Unrealized Losses, Total | 42 | 5 |
Other asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value, Less than 12 months | 344 | 449 |
Gross Unrealized Losses, Less than 12 Months | 9 | 3 |
Estimated Fair Value, 12 Months or Longer | 13 | 33 |
Gross Unrealized Losses, 12 Months or Longer | 0 | 1 |
Estimated Fair Value, Total | 357 | 482 |
Gross Unrealized Losses, Total | 9 | 4 |
Asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value, Less than 12 months | 948 | 1,079 |
Gross Unrealized Losses, Less than 12 Months | 50 | 7 |
Estimated Fair Value, 12 Months or Longer | 52 | 83 |
Gross Unrealized Losses, 12 Months or Longer | 2 | 3 |
Estimated Fair Value, Total | 1,000 | 1,162 |
Gross Unrealized Losses, Total | 52 | 10 |
U.S. Treasury and obligations of government-sponsored enterprises | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value, Less than 12 months | 63 | 62 |
Gross Unrealized Losses, Less than 12 Months | 3 | 2 |
Estimated Fair Value, 12 Months or Longer | 0 | 2 |
Gross Unrealized Losses, 12 Months or Longer | 0 | 0 |
Estimated Fair Value, Total | 63 | 64 |
Gross Unrealized Losses, Total | 3 | 2 |
Foreign government | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value, Less than 12 months | 13 | 59 |
Gross Unrealized Losses, Less than 12 Months | 0 | 1 |
Estimated Fair Value, 12 Months or Longer | 0 | 1 |
Gross Unrealized Losses, 12 Months or Longer | 0 | 0 |
Estimated Fair Value, Total | 13 | 60 |
Gross Unrealized Losses, Total | $ 0 | $ 1 |
Investments (Contractual maturi
Investments (Contractual maturity) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Investments [Abstract] | ||
Due in one year or less, cost or amortized cost | $ 1,456 | $ 1,334 |
Due after one year through five years, cost or amortized cost | 12,304 | 9,746 |
Due after five years through ten years, cost or amortized cost | 12,319 | 14,892 |
Due after ten years, cost or amortized cost | 12,847 | 12,134 |
Cost or Amortized Cost | 38,926 | 38,106 |
Due in one year or less, estimated fair value | 1,458 | 1,356 |
Due after one year through five years, estimated fair value | 13,098 | 10,186 |
Due after five years through ten years, estimated fair value | 13,878 | 15,931 |
Due after ten years, estimated fair value | 16,170 | 14,714 |
Total Estimated Fair Value | $ 44,604 | $ 42,187 |
Investments (Credit quality ind
Investments (Credit quality indicator) (Details) - Mortgage loans $ in Millions | Dec. 31, 2020USD ($) |
Debt Securities, Available-for-sale [Line Items] | |
2020 | $ 161 |
2019 | 284 |
2018 | 103 |
2017 | 215 |
2016 | 85 |
Prior | 246 |
Total | 1,094 |
DSCR ≥1.6x | LTV less than 55% | |
Debt Securities, Available-for-sale [Line Items] | |
2020 | 75 |
2019 | 33 |
2018 | 36 |
2017 | 115 |
2016 | 33 |
Prior | 156 |
Total | 448 |
DSCR ≥1.6x | LTV 55% to 65% | |
Debt Securities, Available-for-sale [Line Items] | |
2020 | 14 |
2019 | 20 |
2018 | 14 |
2017 | 15 |
2016 | 11 |
Prior | 0 |
Total | 74 |
DSCR ≥1.6x | LTV greater than 65% | |
Debt Securities, Available-for-sale [Line Items] | |
2020 | 0 |
2019 | 5 |
2018 | 0 |
2017 | 0 |
2016 | 25 |
Prior | 0 |
Total | 30 |
DSCR 1.2x - 1.6x | LTV less than 55% | |
Debt Securities, Available-for-sale [Line Items] | |
2020 | 0 |
2019 | 17 |
2018 | 0 |
2017 | 5 |
2016 | 9 |
Prior | 68 |
Total | 99 |
DSCR 1.2x - 1.6x | LTV 55% to 65% | |
Debt Securities, Available-for-sale [Line Items] | |
2020 | 20 |
2019 | 29 |
2018 | 53 |
2017 | 27 |
2016 | 0 |
Prior | 0 |
Total | 129 |
DSCR 1.2x - 1.6x | LTV greater than 65% | |
Debt Securities, Available-for-sale [Line Items] | |
2020 | 52 |
2019 | 54 |
2018 | 0 |
2017 | 8 |
2016 | 0 |
Prior | 12 |
Total | 126 |
DSCR ≤1.2 | LTV less than 55% | |
Debt Securities, Available-for-sale [Line Items] | |
2020 | 0 |
2019 | 50 |
2018 | 0 |
2017 | 8 |
2016 | 7 |
Prior | 3 |
Total | 68 |
DSCR ≤1.2 | LTV 55% to 65% | |
Debt Securities, Available-for-sale [Line Items] | |
2020 | 0 |
2019 | 48 |
2018 | 0 |
2017 | 0 |
2016 | 0 |
Prior | 0 |
Total | 48 |
DSCR ≤1.2 | LTV greater than 65% | |
Debt Securities, Available-for-sale [Line Items] | |
2020 | 0 |
2019 | 28 |
2018 | 0 |
2017 | 37 |
2016 | 0 |
Prior | 7 |
Total | $ 72 |
Fair Value (Assets and liabilit
Fair Value (Assets and liabilities measured at fair value on a recurring basis) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fixed maturity securities: | ||
Debt Securities | $ 44,631 | $ 42,207 |
Equity securities: | ||
Equity securities | 992 | 865 |
Short term and other | 1,789 | 1,741 |
Total assets | 47,412 | 44,813 |
Other liabilities | 19 | 7 |
Total liabilities | 19 | 7 |
Corporate and other bonds | ||
Fixed maturity securities: | ||
Debt Securities | 25,234 | 22,728 |
States, municipalities and political subdivisions | ||
Fixed maturity securities: | ||
Debt Securities | 11,592 | 10,652 |
Asset-backed | ||
Fixed maturity securities: | ||
Debt Securities | 7,805 | 8,827 |
Common Stock | ||
Equity securities: | ||
Equity securities | 195 | 142 |
Non-redeemable preferred stock | ||
Equity securities: | ||
Equity securities | 797 | 723 |
Level 1 | ||
Fixed maturity securities: | ||
Debt Securities | 355 | 175 |
Equity securities: | ||
Equity securities | 243 | 189 |
Short term and other | 1,761 | 397 |
Total assets | 2,359 | 761 |
Other liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Level 1 | Corporate and other bonds | ||
Fixed maturity securities: | ||
Debt Securities | 355 | 175 |
Level 1 | States, municipalities and political subdivisions | ||
Fixed maturity securities: | ||
Debt Securities | 0 | 0 |
Level 1 | Asset-backed | ||
Fixed maturity securities: | ||
Debt Securities | 0 | 0 |
Level 1 | Common Stock | ||
Equity securities: | ||
Equity securities | 175 | 135 |
Level 1 | Non-redeemable preferred stock | ||
Equity securities: | ||
Equity securities | 68 | 54 |
Level 2 | ||
Fixed maturity securities: | ||
Debt Securities | 43,152 | 41,399 |
Equity securities: | ||
Equity securities | 722 | 658 |
Short term and other | 28 | 1,344 |
Total assets | 43,902 | 43,401 |
Other liabilities | 19 | 7 |
Total liabilities | 19 | 7 |
Level 2 | Corporate and other bonds | ||
Fixed maturity securities: | ||
Debt Securities | 24,109 | 22,085 |
Level 2 | States, municipalities and political subdivisions | ||
Fixed maturity securities: | ||
Debt Securities | 11,546 | 10,652 |
Level 2 | Asset-backed | ||
Fixed maturity securities: | ||
Debt Securities | 7,497 | 8,662 |
Level 2 | Common Stock | ||
Equity securities: | ||
Equity securities | 0 | 0 |
Level 2 | Non-redeemable preferred stock | ||
Equity securities: | ||
Equity securities | 722 | 658 |
Level 3 | ||
Fixed maturity securities: | ||
Debt Securities | 1,124 | 633 |
Equity securities: | ||
Equity securities | 27 | 18 |
Short term and other | 0 | 0 |
Total assets | 1,151 | 651 |
Other liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Level 3 | Corporate and other bonds | ||
Fixed maturity securities: | ||
Debt Securities | 770 | 468 |
Level 3 | States, municipalities and political subdivisions | ||
Fixed maturity securities: | ||
Debt Securities | 46 | 0 |
Level 3 | Asset-backed | ||
Fixed maturity securities: | ||
Debt Securities | 308 | 165 |
Level 3 | Common Stock | ||
Equity securities: | ||
Equity securities | 20 | 7 |
Level 3 | Non-redeemable preferred stock | ||
Equity securities: | ||
Equity securities | $ 7 | $ 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 | 12 Months Ended | |
Dec. 31, 2020 | Dec. 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) | 60 | 41 |
Total realized and unrealized investment gains (losses) | 56 | 39 |
Purchases | 478 | 306 |
Sales | (12) | 0 |
Settlements | (45) | (27) |
Transfers into Level 3 | 40 | 45 |
Transfers out of Level 3 | (17) | (149) |
Balance, Ending, Assets | 1,151 | 651 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2020 recognized in Net income (loss) in the period | (6) | (2) |
Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2020 recognized in Other comprehensive income (loss) in the period | 62 | 35 |
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) | 43 | 33 |
Total realized and unrealized investment gains (losses) | 44 | 33 |
Purchases | 264 | 256 |
Sales | (3) | 0 |
Settlements | (13) | (11) |
Transfers into Level 3 | 10 | 0 |
Transfers out of Level 3 | 0 | (32) |
Balance, Ending, Assets | 770 | 468 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2020 recognized in Net income (loss) in the period | 0 | 0 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2020 recognized in Other comprehensive income (loss) in the period | 43 | 28 |
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) | 1 | 0 |
Total realized and unrealized investment gains (losses) | 1 | 0 |
Purchases | 45 | 0 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Balance, Ending, Assets | 46 | 0 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2020 recognized in Net income (loss) in the period | 0 | 0 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2020 recognized in Other comprehensive income (loss) in the period | 1 | 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) | 16 | 8 |
Total realized and unrealized investment gains (losses) | 17 | 8 |
Purchases | 154 | 48 |
Sales | (9) | 0 |
Settlements | (32) | (16) |
Transfers into Level 3 | 30 | 45 |
Transfers out of Level 3 | (17) | (117) |
Balance, Ending, Assets | 308 | 165 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2020 recognized in Net income (loss) in the period | 0 | 0 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2020 recognized in Other comprehensive income (loss) in the period | 18 | 7 |
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) | (6) | (2) |
Purchases | 15 | 2 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Balance, Ending, Assets | 27 | 18 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2020 recognized in Net income (loss) in the period | (6) | (2) |
Unrealized gains (losses) on Level 3 assets and liabilities held as of December 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) | (4) | (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) | 1 | 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) | (1) | 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) | (4) | (2) |
Reported in Net investment income | ||
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 | 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 | 2 | 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 | $ (2) | $ 0 |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value Disclosures [Abstract] | ||
Other invested assets overseas deposit | $ 71 | $ 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 | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Estimated fair value | $ 47,412 | $ 44,813 |
Fixed maturity securities | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Estimated fair value | $ 966 | $ 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 | 0.08 | 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 | 0.03 | 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 | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Mortgage loans | $ 1,068 | $ 994 |
Liabilities | ||
Long term debt | 2,776 | 2,679 |
Carrying Amount | ||
Assets | ||
Mortgage loans | 1,068 | 994 |
Note receivable | 21 | |
Liabilities | ||
Long term debt | 2,776 | 2,679 |
Estimated Fair Value | ||
Assets | ||
Mortgage loans | 1,151 | 1,025 |
Note receivable | 21 | |
Liabilities | ||
Long term debt | 3,148 | 2,906 |
Level 1 | Estimated Fair Value | ||
Assets | ||
Mortgage loans | 0 | 0 |
Note receivable | 0 | |
Liabilities | ||
Long term debt | 0 | 0 |
Level 2 | Estimated Fair Value | ||
Assets | ||
Mortgage loans | 0 | 0 |
Note receivable | 0 | |
Liabilities | ||
Long term debt | 3,148 | 2,906 |
Level 3 | Estimated Fair Value | ||
Assets | ||
Mortgage loans | 1,151 | 1,025 |
Note receivable | 21 | |
Liabilities | ||
Long term debt | $ 0 | $ 0 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefits | $ 0 | $ 0 | |
Interest income (expense) | 0 | 0 | $ 0 |
Income tax penalties expense | 0 | 0 | 0 |
Accrued interest and penalties | 0 | 0 | |
Deferred tax liability on undistributed income related to a foreign subsidiary | 0 | ||
Foreign tax expense (benefit) on income from continuing operations | 16,000,000 | 19,000,000 | 5,000,000 |
Income (loss) from continuing foreign operations | 45,000,000 | 43,000,000 | 22,000,000 |
Operating loss carryforwards | 0 | ||
Tax credit carryforward, amount | 8,000,000 | ||
Operating loss carryforwards, not subject to expiration | 46,000,000 | ||
Valuation allowance | 0 | 0 | |
Year 2029 | |||
Income Tax Contingency [Line Items] | |||
Tax credit carryforward, subject to expiration, amount | 4,000,000 | ||
Year 2030 | |||
Income Tax Contingency [Line Items] | |||
Tax credit carryforward, subject to expiration, amount | 4,000,000 | ||
Federal Income Taxes | |||
Income Tax Contingency [Line Items] | |||
Related party transaction, amounts of transaction | 65,000,000 | $ 239,000,000 | $ 275,000,000 |
Foreign Tax Authority | |||
Income Tax Contingency [Line Items] | |||
Operating loss carryforwards | 48,000,000 | ||
Tax credit carryforward, amount | 3,000,000 | ||
Operating loss carryforwards, subject to expiration | $ 2,000,000 |
Income Taxes (Reconciliation be
Income Taxes (Reconciliation between the Company's federal income tax (expense) benefit at statutory rates and the recorded income tax (expense) benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense at statutory rates | $ (172) | $ (257) | $ (203) |
Tax benefit from tax exempt income | 52 | 53 | 63 |
Foreign taxes and credits | 2 | (1) | (1) |
State income taxes | (6) | (14) | (13) |
Other tax expense | (7) | (4) | 3 |
Income tax expense | $ (131) | $ (223) | $ (151) |
Income Taxes (Current and defer
Income Taxes (Current and deferred components of the Company's income tax (expense) benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Current tax expense | $ (180) | $ (269) | $ (171) |
Deferred tax benefit | 49 | 46 | 20 |
Income tax expense | $ (131) | $ (223) | $ (151) |
Income Taxes (Significant compo
Income Taxes (Significant components of the Company's deferred tax assets and liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Tax Assets: | ||
Property and casualty claim and claim adjustment expense reserves | $ 157 | $ 129 |
Unearned premium reserves | 174 | 153 |
Receivables | 11 | 11 |
Employee benefits | 122 | 127 |
Deferred retroactive reinsurance benefit | 83 | 82 |
Other assets | 143 | 132 |
Gross deferred tax assets | 690 | 634 |
Deferred Tax Liabilities: | ||
Investment valuation differences | 28 | 40 |
Deferred acquisition costs | 93 | 83 |
Net unrealized gains | 453 | 264 |
Software and hardware | 31 | 34 |
Other liabilities | 19 | 14 |
Gross deferred tax liabilities | 624 | 435 |
Net deferred tax asset | $ 66 | $ 199 |
Claim and Claim Adjustment Ex_2
Claim and Claim Adjustment Expense Reserves (Narrative) (Details) - Asbestos and Environmental Reserves - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2010 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Net A&EP claim and allocated claim adjustment expense reserves ceded to NICO | $ 1,600 | |||
Aggregate limit under A&EP Loss Portfolio Transfer | 4,000 | |||
A&EP claim and allocated claim adjustment expense reserves ceded under existing third party reinsurance contracts transferred to NICO under A&EP Loss Portfolio Transfer | 1,200 | |||
Reinsurance premium paid to NICO under A&EP Loss Portfolio Transfer | 2,000 | |||
Net reinsurance receivables transferred to NICO under A&EP Loss Portfolio Transfer | 215 | |||
Total consideration paid to NICO under AEP Loss Portfolio Transfer | $ 2,200 | |||
Net A&EP adverse development before consideration of LPT | $ 125 | $ 150 | $ 178 | |
Provision for uncollectible third-party reinsurance, released | 25 | 25 | $ 16 | |
Cumulative amounts ceded under AEP Loss Portfolio Transfer | 3,300 | 3,200 | ||
Deferred reinsurance benefit yet to be recognized | 398 | 392 | ||
Fair value of collateral trust account established by NICO under A&EP Loss Portfolio Transfer | $ 4,200 | $ 3,700 |
Claim and Claim Adjustment Ex_3
Claim and Claim Adjustment Expense Reserves (Reconciliation of Liability for Unpaid Claim and Claim Adjustment Expense) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Total Net Carried Claim and Claim Adjustment Expense Reserves | $ 18,701 | $ 17,885 | $ 17,965 | $ 18,070 |
Reinsurance receivables | 4,005 | |||
Total gross liability for unpaid claim and claim adjustment expenses | 22,706 | 21,720 | ||
Specialty | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Total Net Carried Claim and Claim Adjustment Expense Reserves | 4,898 | 4,676 | ||
Reinsurance receivables | 850 | |||
Commercial | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Total Net Carried Claim and Claim Adjustment Expense Reserves | 8,204 | 7,849 | ||
Reinsurance receivables | 837 | |||
International | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Total Net Carried Claim and Claim Adjustment Expense Reserves | 1,822 | 1,628 | ||
Reinsurance receivables | 269 | |||
Corporate & Other | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Total Net Carried Claim and Claim Adjustment Expense Reserves | 162 | $ 175 | ||
Reinsurance receivables | 1,921 | |||
Life & Group | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Total Net Carried Claim and Claim Adjustment Expense Reserves | 3,615 | |||
Reinsurance receivables | $ 128 |
Claim and Claim Adjustment Ex_4
Claim and Claim Adjustment Expense Reserves (Reconciliation of claim and claim adjustment expense reserves) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reserves, beginning of year: | |||
Gross | $ 21,720 | $ 21,984 | $ 22,004 |
Ceded | 3,835 | 4,019 | 3,934 |
Net reserves, beginning of year | 17,885 | 17,965 | 18,070 |
Net incurred claim and claim adjustment expenses: | |||
Provision for insured events of current year | 5,793 | 5,356 | 5,358 |
Increase (decrease) in provision for insured events of prior years | (119) | (127) | (179) |
Amortization of discount | 183 | 184 | 176 |
Total net incurred | 5,857 | 5,413 | 5,355 |
Net payments attributable to: | |||
Current year events | (948) | (992) | (1,046) |
Prior year events | (4,216) | (4,584) | (4,285) |
Total net payments | (5,164) | (5,576) | (5,331) |
Foreign currency translation adjustment and other | 123 | 83 | (129) |
Net reserves, end of year | 18,701 | 17,885 | 17,965 |
Ceded reserves, end of year | 4,005 | 3,835 | 4,019 |
Gross reserves, end of year | $ 22,706 | $ 21,720 | $ 21,984 |
Claim and Claim Adjustment Ex_5
Claim and Claim Adjustment Expense Reserves (Gross and net carried claim and claim adjustment expense reserves) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Gross Case Reserves | $ 10,694 | $ 10,989 | ||
Gross IBNR Reserves | 12,012 | 10,731 | ||
Total Gross Carried Claim and Claim Adjustment Expense Reserves | 22,706 | 21,720 | $ 21,984 | $ 22,004 |
Net Case Reserves | 8,930 | 9,178 | ||
Net IBNR Reserves | 9,771 | 8,707 | ||
Total Net Carried Claim and Claim Adjustment Expense Reserves | 18,701 | 17,885 | $ 17,965 | $ 18,070 |
Specialty | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Gross Case Reserves | 1,567 | 1,481 | ||
Gross IBNR Reserves | 4,181 | 3,757 | ||
Total Gross Carried Claim and Claim Adjustment Expense Reserves | 5,748 | 5,238 | ||
Net Case Reserves | 1,410 | 1,343 | ||
Net IBNR Reserves | 3,488 | 3,333 | ||
Total Net Carried Claim and Claim Adjustment Expense Reserves | 4,898 | 4,676 | ||
Commercial | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Gross Case Reserves | 3,724 | 3,937 | ||
Gross IBNR Reserves | 5,317 | 4,719 | ||
Total Gross Carried Claim and Claim Adjustment Expense Reserves | 9,041 | 8,656 | ||
Net Case Reserves | 3,357 | 3,543 | ||
Net IBNR Reserves | 4,847 | 4,306 | ||
Total Net Carried Claim and Claim Adjustment Expense Reserves | 8,204 | 7,849 | ||
International | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Gross Case Reserves | 892 | 858 | ||
Gross IBNR Reserves | 1,199 | 1,018 | ||
Total Gross Carried Claim and Claim Adjustment Expense Reserves | 2,091 | 1,876 | ||
Net Case Reserves | 777 | 759 | ||
Net IBNR Reserves | 1,045 | 869 | ||
Total Net Carried Claim and Claim Adjustment Expense Reserves | 1,822 | 1,628 | ||
Life & Group | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Gross Case Reserves | 3,406 | 3,576 | ||
Gross IBNR Reserves | 337 | 140 | ||
Total Gross Carried Claim and Claim Adjustment Expense Reserves | 3,743 | 3,716 | ||
Net Case Reserves | 3,298 | 3,441 | ||
Net IBNR Reserves | 317 | 116 | ||
Total Net Carried Claim and Claim Adjustment Expense Reserves | 3,615 | 3,557 | ||
Corporate & Other | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Gross Case Reserves | 1,105 | 1,137 | ||
Gross IBNR Reserves | 978 | 1,097 | ||
Total Gross Carried Claim and Claim Adjustment Expense Reserves | 2,083 | 2,234 | ||
Net Case Reserves | 88 | 92 | ||
Net IBNR Reserves | 74 | 83 | ||
Total Net Carried Claim and Claim Adjustment Expense Reserves | $ 162 | $ 175 |
Claim and Claim Adjustment Ex_6
Claim and Claim Adjustment Expense Reserves (Net prior year development) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Pretax (favorable) unfavorable premium development, excluding Life & Group | $ (20) | $ (73) | $ (181) |
Specialty | |||
Segment Reporting Information [Line Items] | |||
Pretax (favorable) unfavorable premium development, excluding Life & Group | (61) | (92) | (150) |
Commercial | |||
Segment Reporting Information [Line Items] | |||
Pretax (favorable) unfavorable premium development, excluding Life & Group | 43 | (2) | (25) |
International | |||
Segment Reporting Information [Line Items] | |||
Pretax (favorable) unfavorable premium development, excluding Life & Group | (2) | 21 | (4) |
Corporate & Other | |||
Segment Reporting Information [Line Items] | |||
Pretax (favorable) unfavorable premium development, excluding Life & Group | $ 0 | $ 0 | $ (2) |
Claim and Claim Adjustment Ex_7
Claim and Claim Adjustment Expense Reserves (Specialty - Net prior year claim and allocated claim adjustment expense reserve development) (Details) - Specialty - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Medical Professional Liability | $ 35 | $ 75 | $ 47 |
Other Professional Liability and Management Liability | (15) | (69) | (127) |
Surety | (69) | (92) | (70) |
Warranty | (7) | (15) | (10) |
Other | (5) | 9 | 10 |
Total pretax (favorable) unfavorable development | $ (61) | $ (92) | $ (150) |
Claim and Claim Adjustment Ex_8
Claim and Claim Adjustment Expense Reserves (Specialty - Line of Business Composition) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total net liability for unpaid claim and claim adjustment expenses | $ 18,701 | $ 17,885 | $ 17,965 | $ 18,070 |
Specialty | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total net liability for unpaid claim and claim adjustment expenses | 4,898 | $ 4,676 | ||
Medical Professional Liability | Specialty | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total net liability for unpaid claim and claim adjustment expenses | 1,520 | |||
Other Professional Liability and Management Liability | Specialty | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total net liability for unpaid claim and claim adjustment expenses | 2,850 | |||
Surety | Specialty | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total net liability for unpaid claim and claim adjustment expenses | 385 | |||
Warranty | Specialty | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total net liability for unpaid claim and claim adjustment expenses | 34 | |||
Other | Specialty | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total net liability for unpaid claim and claim adjustment expenses | $ 109 |
Claim and Claim Adjustment Ex_9
Claim and Claim Adjustment Expense Reserves (Specialty - Medical Professional Liability - Cumulative Net Incurred Claims and Allocated Claim Adjustment Expenses) (Details) - Medical Professional Liability - Specialty $ in Millions | Dec. 31, 2020USD ($)claim | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) |
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 4,825 | |||||||||
IBNR | 905 | |||||||||
2011 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | 439 | $ 439 | $ 437 | $ 437 | $ 434 | $ 439 | $ 468 | $ 443 | $ 437 | $ 429 |
IBNR | $ 4 | |||||||||
Cumulative Number of Claims | claim | 16,537 | |||||||||
2012 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 497 | 499 | 493 | 484 | 493 | 498 | 508 | 469 | $ 464 | |
IBNR | $ 5 | |||||||||
Cumulative Number of Claims | claim | 17,739 | |||||||||
2013 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 531 | 545 | 535 | 525 | 513 | 500 | 479 | $ 462 | ||
IBNR | $ 11 | |||||||||
Cumulative Number of Claims | claim | 19,537 | |||||||||
2014 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 527 | 529 | 535 | 530 | 537 | 489 | $ 450 | |||
IBNR | $ 11 | |||||||||
Cumulative Number of Claims | claim | 19,770 | |||||||||
2015 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 510 | 488 | 494 | 510 | 499 | $ 433 | ||||
IBNR | $ 29 | |||||||||
Cumulative Number of Claims | claim | 18,122 | |||||||||
2016 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 508 | 499 | 485 | 487 | $ 427 | |||||
IBNR | $ 27 | |||||||||
Cumulative Number of Claims | claim | 15,998 | |||||||||
2017 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 460 | 458 | 449 | $ 412 | ||||||
IBNR | $ 62 | |||||||||
Cumulative Number of Claims | claim | 15,008 | |||||||||
2018 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 431 | 429 | $ 404 | |||||||
IBNR | $ 98 | |||||||||
Cumulative Number of Claims | claim | 14,531 | |||||||||
2019 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 445 | $ 430 | ||||||||
IBNR | $ 232 | |||||||||
Cumulative Number of Claims | claim | 13,045 | |||||||||
2020 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 477 | |||||||||
IBNR | $ 426 | |||||||||
Cumulative Number of Claims | claim | 7,787 |
Claim and Claim Adjustment E_10
Claim and Claim Adjustment Expense Reserves (Specialty - Medical Professional Liability - Net Cumulative Paid Claim and Claim Adjustment Expenses) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Total net liability for unpaid claim and claim adjustment expenses | $ 18,701 | $ 17,885 | $ 17,965 | $ 18,070 | ||||||
Specialty | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Total net liability for unpaid claim and claim adjustment expenses | 4,898 | 4,676 | ||||||||
Medical Professional Liability | Specialty | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 3,353 | |||||||||
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented | 1,472 | |||||||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2011 | 19 | |||||||||
Liability for unallocated claim adjustment expenses for accident years presented | 29 | |||||||||
Total net liability for unpaid claim and claim adjustment expenses | 1,520 | |||||||||
Medical Professional Liability | 2011 | Specialty | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 432 | 414 | 409 | 398 | $ 375 | $ 347 | $ 295 | $ 208 | $ 109 | $ 17 |
Medical Professional Liability | 2012 | Specialty | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 482 | 479 | 457 | 427 | 388 | 323 | 221 | 117 | $ 14 | |
Medical Professional Liability | 2013 | Specialty | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 508 | 495 | 462 | 414 | 355 | 255 | 119 | $ 17 | ||
Medical Professional Liability | 2014 | Specialty | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 489 | 472 | 417 | 359 | 258 | 136 | $ 23 | |||
Medical Professional Liability | 2015 | Specialty | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 420 | 384 | 313 | 230 | 101 | $ 22 | ||||
Medical Professional Liability | 2016 | Specialty | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 401 | 339 | 246 | 121 | $ 18 | |||||
Medical Professional Liability | 2017 | Specialty | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 308 | 235 | 107 | $ 19 | ||||||
Medical Professional Liability | 2018 | Specialty | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 211 | 115 | $ 21 | |||||||
Medical Professional Liability | 2019 | Specialty | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 91 | $ 17 | ||||||||
Medical Professional Liability | 2020 | Specialty | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | $ 11 |
Claim and Claim Adjustment E_11
Claim and Claim Adjustment Expense Reserves (Specialty - Medical Professional Liability - Net Strengthening or Releasing of Prior Accident Year Reserves) (Details) - Specialty - USD ($) $ in Millions | 12 Months Ended | 24 Months Ended | 36 Months Ended | 48 Months Ended | 60 Months Ended | 72 Months Ended | 84 Months Ended | 96 Months Ended | 108 Months Ended | 120 Months Ended | ||||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | |
Claims Development [Line Items] | ||||||||||||||||||
Total | $ 35 | $ 75 | $ 47 | |||||||||||||||
Medical Professional Liability | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 32 | 54 | 43 | |||||||||||||||
Total net development for accident years prior to 2011 | 3 | 19 | 5 | |||||||||||||||
Total unallocated claim adjustment expense development | 0 | 2 | (1) | |||||||||||||||
Total | 35 | 75 | 47 | |||||||||||||||
Medical Professional Liability | 2011 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 0 | 2 | 0 | $ 3 | $ (5) | $ (29) | $ 25 | $ 6 | $ 8 | $ 10 | ||||||||
Medical Professional Liability | 2012 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (2) | 6 | 9 | (9) | (5) | (10) | 39 | $ 5 | $ 33 | |||||||||
Medical Professional Liability | 2013 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (14) | 10 | 10 | 12 | 13 | 21 | $ 17 | $ 69 | ||||||||||
Medical Professional Liability | 2014 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (2) | (6) | 5 | (7) | 48 | $ 39 | $ 77 | |||||||||||
Medical Professional Liability | 2015 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 22 | (6) | (16) | 11 | $ 66 | $ 77 | ||||||||||||
Medical Professional Liability | 2016 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 9 | 14 | (2) | $ 60 | $ 81 | |||||||||||||
Medical Professional Liability | 2017 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 2 | 9 | $ 37 | $ 48 | ||||||||||||||
Medical Professional Liability | 2018 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 2 | $ 25 | $ 27 | |||||||||||||||
Medical Professional Liability | 2019 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | $ 15 | $ 15 |
Claim and Claim Adjustment E_12
Claim and Claim Adjustment Expense Reserves (Specialty - Other Professional Liability and Management Liability - Net Incurred Claims and Allocated Claim Adjustment Expenses) (Details) - Other Professional Liability and Management Liability - Specialty $ in Millions | Dec. 31, 2020USD ($)claim | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) |
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 8,579 | |||||||||
IBNR | 2,049 | |||||||||
2011 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | 883 | $ 885 | $ 888 | $ 899 | $ 911 | $ 944 | $ 949 | $ 934 | $ 908 | $ 880 |
IBNR | $ 17 | |||||||||
Cumulative Number of Claims | claim | 18,745 | |||||||||
2012 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 850 | 831 | 833 | 846 | 840 | 878 | 887 | 909 | $ 923 | |
IBNR | $ 25 | |||||||||
Cumulative Number of Claims | claim | 18,504 | |||||||||
2013 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 846 | 850 | 863 | 866 | 885 | 926 | 894 | $ 884 | ||
IBNR | $ 36 | |||||||||
Cumulative Number of Claims | claim | 17,939 | |||||||||
2014 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 845 | 854 | 835 | 831 | 885 | 898 | $ 878 | |||
IBNR | $ 57 | |||||||||
Cumulative Number of Claims | claim | 17,568 | |||||||||
2015 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 813 | 807 | 832 | 877 | 892 | $ 888 | ||||
IBNR | $ 74 | |||||||||
Cumulative Number of Claims | claim | 17,417 | |||||||||
2016 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 907 | 904 | 900 | 900 | $ 901 | |||||
IBNR | $ 120 | |||||||||
Cumulative Number of Claims | claim | 17,946 | |||||||||
2017 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 791 | 813 | 845 | $ 847 | ||||||
IBNR | $ 220 | |||||||||
Cumulative Number of Claims | claim | 18,118 | |||||||||
2018 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 869 | 864 | $ 850 | |||||||
IBNR | $ 276 | |||||||||
Cumulative Number of Claims | claim | 19,789 | |||||||||
2019 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 845 | $ 837 | ||||||||
IBNR | $ 447 | |||||||||
Cumulative Number of Claims | claim | 19,157 | |||||||||
2020 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 930 | |||||||||
IBNR | $ 777 | |||||||||
Cumulative Number of Claims | claim | 16,557 |
Claim and Claim Adjustment E_13
Claim and Claim Adjustment Expense Reserves (Specialty - Other Professional Liability and Management Liability - Net Cumulative Paid Claim and Claim Adjustment Expenses) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | ||||||||||
Total net liability for unpaid claim and claim adjustment expenses | $ 18,701 | $ 17,885 | $ 17,965 | $ 18,070 | ||||||
Specialty | ||||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | ||||||||||
Total net liability for unpaid claim and claim adjustment expenses | 4,898 | 4,676 | ||||||||
Other Professional Liability and Management Liability | Specialty | ||||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 5,864 | |||||||||
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented | 2,715 | |||||||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2011 | 79 | |||||||||
Liability for unallocated claim adjustment expenses for accident years presented | 56 | |||||||||
Total net liability for unpaid claim and claim adjustment expenses | 2,850 | |||||||||
Other Professional Liability and Management Liability | 2011 | Specialty | ||||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 851 | 828 | 796 | 781 | $ 726 | $ 683 | $ 605 | $ 503 | $ 314 | $ 71 |
Other Professional Liability and Management Liability | 2012 | Specialty | ||||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 812 | 792 | 755 | 711 | 651 | 573 | 400 | 248 | $ 56 | |
Other Professional Liability and Management Liability | 2013 | Specialty | ||||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 779 | 771 | 754 | 702 | 618 | 447 | 249 | $ 54 | ||
Other Professional Liability and Management Liability | 2014 | Specialty | ||||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 743 | 707 | 647 | 515 | 392 | 223 | $ 51 | |||
Other Professional Liability and Management Liability | 2015 | Specialty | ||||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 677 | 612 | 542 | 404 | 234 | $ 60 | ||||
Other Professional Liability and Management Liability | 2016 | Specialty | ||||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 701 | 625 | 466 | 248 | $ 64 | |||||
Other Professional Liability and Management Liability | 2017 | Specialty | ||||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 498 | 394 | 222 | $ 57 | ||||||
Other Professional Liability and Management Liability | 2018 | Specialty | ||||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 473 | 282 | $ 54 | |||||||
Other Professional Liability and Management Liability | 2019 | Specialty | ||||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 263 | $ 64 | ||||||||
Other Professional Liability and Management Liability | 2020 | Specialty | ||||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | $ 67 |
Claim and Claim Adjustment E_14
Claim and Claim Adjustment Expense Reserves (Specialty - Other Professional Liability and Management Liability - Net Strengthening or Releasing of Prior Accident Year Reserves) (Details) - Specialty - USD ($) $ in Millions | 12 Months Ended | 24 Months Ended | 36 Months Ended | 48 Months Ended | 60 Months Ended | 72 Months Ended | 84 Months Ended | 96 Months Ended | 108 Months Ended | 120 Months Ended | ||||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | |
Claims Development [Line Items] | ||||||||||||||||||
Total | $ (15) | $ (69) | $ (127) | |||||||||||||||
Other Professional Liability and Management Liability | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 4 | (38) | (70) | |||||||||||||||
Total net development for accident years prior to 2011 | (19) | (17) | (50) | |||||||||||||||
Total unallocated claim adjustment expense development | 0 | (14) | (7) | |||||||||||||||
Total | (15) | (69) | (127) | |||||||||||||||
Other Professional Liability and Management Liability | 2011 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (2) | (3) | (11) | $ (12) | $ (33) | $ (5) | $ 15 | $ 26 | $ 28 | $ 3 | ||||||||
Other Professional Liability and Management Liability | 2012 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 19 | (2) | (13) | 6 | (38) | (9) | (22) | $ (14) | $ (73) | |||||||||
Other Professional Liability and Management Liability | 2013 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (4) | (13) | (3) | (19) | (41) | 32 | $ 10 | $ (38) | ||||||||||
Other Professional Liability and Management Liability | 2014 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (9) | 19 | 4 | (54) | (13) | $ 20 | $ (33) | |||||||||||
Other Professional Liability and Management Liability | 2015 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 6 | (25) | (45) | (15) | $ 4 | $ (75) | ||||||||||||
Other Professional Liability and Management Liability | 2016 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 3 | 4 | 0 | $ (1) | $ 6 | |||||||||||||
Other Professional Liability and Management Liability | 2017 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (22) | (32) | $ (2) | $ (56) | ||||||||||||||
Other Professional Liability and Management Liability | 2018 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 5 | $ 14 | $ 19 | |||||||||||||||
Other Professional Liability and Management Liability | 2019 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | $ 8 | $ 8 |
Claim and Claim Adjustment E_15
Claim and Claim Adjustment Expense Reserves (Specialty - Surety - Net Incurred Claims and Allocated Claim Adjustment Expenses) (Details) - Surety - Specialty $ in Millions | Dec. 31, 2020USD ($)claim | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) |
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 766 | |||||||||
IBNR | 290 | |||||||||
2011 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | 62 | $ 62 | $ 62 | $ 66 | $ 70 | $ 75 | $ 87 | $ 116 | $ 121 | $ 120 |
IBNR | $ 1 | |||||||||
Cumulative Number of Claims | claim | 5,828 | |||||||||
2012 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 37 | 38 | 39 | 45 | 52 | 70 | 98 | 122 | $ 120 | |
IBNR | $ 1 | |||||||||
Cumulative Number of Claims | claim | 5,577 | |||||||||
2013 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 82 | 83 | 87 | 91 | 106 | 115 | 121 | $ 120 | ||
IBNR | $ 1 | |||||||||
Cumulative Number of Claims | claim | 5,078 | |||||||||
2014 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 45 | 45 | 60 | 69 | 94 | 124 | $ 123 | |||
IBNR | $ 1 | |||||||||
Cumulative Number of Claims | claim | 5,102 | |||||||||
2015 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 58 | 63 | 79 | 104 | 131 | $ 131 | ||||
IBNR | $ 6 | |||||||||
Cumulative Number of Claims | claim | 5,026 | |||||||||
2016 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 67 | 84 | 109 | 124 | $ 124 | |||||
IBNR | $ 12 | |||||||||
Cumulative Number of Claims | claim | 5,469 | |||||||||
2017 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 84 | 103 | 115 | $ 120 | ||||||
IBNR | $ 31 | |||||||||
Cumulative Number of Claims | claim | 5,706 | |||||||||
2018 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 91 | 108 | $ 114 | |||||||
IBNR | $ 48 | |||||||||
Cumulative Number of Claims | claim | 5,920 | |||||||||
2019 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 112 | $ 119 | ||||||||
IBNR | $ 67 | |||||||||
Cumulative Number of Claims | claim | 5,344 | |||||||||
2020 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 128 | |||||||||
IBNR | $ 122 | |||||||||
Cumulative Number of Claims | claim | 2,527 |
Claim and Claim Adjustment E_16
Claim and Claim Adjustment Expense Reserves (Specialty - Surety - Net Cumulative Paid Claim and Claim Adjustment Expenses) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Total net liability for unpaid claim and claim adjustment expenses | $ 18,701 | $ 17,885 | $ 17,965 | $ 18,070 | ||||||
Specialty | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Total net liability for unpaid claim and claim adjustment expenses | 4,898 | 4,676 | ||||||||
Surety | Specialty | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 415 | |||||||||
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented | 351 | |||||||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2011 | 14 | |||||||||
Liability for unallocated claim adjustment expenses for accident years presented | 20 | |||||||||
Total net liability for unpaid claim and claim adjustment expenses | 385 | |||||||||
Surety | Specialty | 2011 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 57 | 57 | 57 | 56 | $ 60 | $ 60 | $ 58 | $ 55 | $ 42 | $ 19 |
Surety | Specialty | 2012 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 36 | 37 | 37 | 36 | 35 | 35 | 34 | 32 | $ 5 | |
Surety | Specialty | 2013 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 78 | 77 | 78 | 78 | 78 | 69 | 40 | $ 16 | ||
Surety | Specialty | 2014 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 39 | 38 | 38 | 36 | 38 | 30 | $ 7 | |||
Surety | Specialty | 2015 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 44 | 42 | 40 | 38 | 26 | $ 7 | ||||
Surety | Specialty | 2016 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 43 | 45 | 45 | 37 | $ 5 | |||||
Surety | Specialty | 2017 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 46 | 41 | 37 | $ 23 | ||||||
Surety | Specialty | 2018 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 34 | 25 | $ 5 | |||||||
Surety | Specialty | 2019 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 34 | $ 12 | ||||||||
Surety | Specialty | 2020 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | $ 4 |
Claim and Claim Adjustment E_17
Claim and Claim Adjustment Expense Reserves (Specialty - Surety - Net Strengthening or Releasing of Prior Accident Year Reserves) (Details) - Specialty - USD ($) $ in Millions | 12 Months Ended | 24 Months Ended | 36 Months Ended | 48 Months Ended | 60 Months Ended | 72 Months Ended | 84 Months Ended | 96 Months Ended | 108 Months Ended | 120 Months Ended | ||||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | |
Claims Development [Line Items] | ||||||||||||||||||
Total | $ (69) | $ (92) | $ (70) | |||||||||||||||
Surety | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (67) | (79) | (68) | |||||||||||||||
Total net development for accident years prior to 2011 | (2) | (3) | (2) | |||||||||||||||
Total unallocated claim adjustment expense development | 0 | (10) | 0 | |||||||||||||||
Total | (69) | (92) | (70) | |||||||||||||||
Surety | 2011 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 0 | 0 | (4) | $ (4) | $ (5) | $ (12) | $ (29) | $ (5) | $ 1 | $ (58) | ||||||||
Surety | 2012 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (1) | (1) | (6) | (7) | (18) | (28) | (24) | $ 2 | $ (83) | |||||||||
Surety | 2013 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (1) | (4) | (4) | (15) | (9) | (6) | $ 1 | $ (38) | ||||||||||
Surety | 2014 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 0 | (15) | (9) | (25) | (30) | $ 1 | $ (78) | |||||||||||
Surety | 2015 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (5) | (16) | (25) | (27) | $ 0 | $ (73) | ||||||||||||
Surety | 2016 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (17) | (25) | (15) | $ 0 | $ (57) | |||||||||||||
Surety | 2017 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (19) | (12) | $ (5) | $ (36) | ||||||||||||||
Surety | 2018 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (17) | $ (6) | $ (23) | |||||||||||||||
Surety | 2019 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | $ (7) | $ (7) |
Claim and Claim Adjustment E_18
Claim and Claim Adjustment Expense Reserves (Commercial - Net prior year claim and allocated claim adjustment expense reserve development) (Details) - Commercial - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Commercial Auto | $ 33 | $ (25) | $ 1 |
General Liability | 65 | 54 | 32 |
Workers' Compensation | (96) | (13) | (32) |
Property and Other | 41 | (18) | (26) |
Total pretax (favorable) unfavorable development | $ 43 | $ (2) | $ (25) |
Claim and Claim Adjustment E_19
Claim and Claim Adjustment Expense Reserves (Commercial - Commercial Auto - Short Duration Contracts) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total net liability for unpaid claim and claim adjustment expenses | $ 18,701 | $ 17,885 | $ 17,965 | $ 18,070 |
Commercial | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total net liability for unpaid claim and claim adjustment expenses | 8,204 | $ 7,849 | ||
Commercial Auto | Commercial | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total net liability for unpaid claim and claim adjustment expenses | 502 | |||
General Liability | Commercial | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total net liability for unpaid claim and claim adjustment expenses | 3,305 | |||
Workers' Compensation | Commercial | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total net liability for unpaid claim and claim adjustment expenses | 3,872 | |||
Property and Other | Commercial | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total net liability for unpaid claim and claim adjustment expenses | $ 525 |
Claim and Claim Adjustment E_20
Claim and Claim Adjustment Expense Reserves (Commercial - Commercial Auto - Net Incurred Claims and Allocated Claim Adjustment Expenses) (Details) - Commercial Auto - Commercial $ in Millions | Dec. 31, 2020USD ($)claim | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) |
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 2,425 | |||||||||
IBNR | 262 | |||||||||
2011 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | 292 | $ 291 | $ 294 | $ 294 | $ 294 | $ 300 | $ 302 | $ 288 | $ 281 | $ 268 |
IBNR | $ 0 | |||||||||
Cumulative Number of Claims | claim | 47,907 | |||||||||
2012 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 296 | 297 | 299 | 299 | 307 | 303 | 299 | 289 | $ 275 | |
IBNR | $ 2 | |||||||||
Cumulative Number of Claims | claim | 46,288 | |||||||||
2013 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 241 | 241 | 245 | 245 | 249 | 265 | 265 | $ 246 | ||
IBNR | $ 2 | |||||||||
Cumulative Number of Claims | claim | 39,429 | |||||||||
2014 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 201 | 201 | 205 | 205 | 212 | 223 | $ 234 | |||
IBNR | $ 1 | |||||||||
Cumulative Number of Claims | claim | 33,625 | |||||||||
2015 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 181 | 183 | 190 | 190 | 199 | $ 201 | ||||
IBNR | $ 3 | |||||||||
Cumulative Number of Claims | claim | 30,426 | |||||||||
2016 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 190 | 186 | 186 | 186 | $ 198 | |||||
IBNR | $ 2 | |||||||||
Cumulative Number of Claims | claim | 30,430 | |||||||||
2017 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 221 | 200 | 198 | $ 199 | ||||||
IBNR | $ 7 | |||||||||
Cumulative Number of Claims | claim | 30,913 | |||||||||
2018 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 227 | 227 | $ 229 | |||||||
IBNR | $ 10 | |||||||||
Cumulative Number of Claims | claim | 34,225 | |||||||||
2019 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 266 | $ 257 | ||||||||
IBNR | $ 48 | |||||||||
Cumulative Number of Claims | claim | 36,779 | |||||||||
2020 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 310 | |||||||||
IBNR | $ 187 | |||||||||
Cumulative Number of Claims | claim | 24,427 |
Claim and Claim Adjustment E_21
Claim and Claim Adjustment Expense Reserves (Commercial - Commercial Auto - Net Cumulative Paid Claim and Claim Adjustment Expenses) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Total net liability for unpaid claim and claim adjustment expenses | $ 18,701 | $ 17,885 | $ 17,965 | $ 18,070 | ||||||
Commercial | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Total net liability for unpaid claim and claim adjustment expenses | 8,204 | 7,849 | ||||||||
Commercial Auto | Commercial | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 1,939 | |||||||||
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented | 486 | |||||||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2011 | 2 | |||||||||
Liability for unallocated claim adjustment expenses for accident years presented | 14 | |||||||||
Total net liability for unpaid claim and claim adjustment expenses | 502 | |||||||||
Commercial Auto | Commercial | 2011 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 290 | 289 | 289 | 287 | $ 284 | $ 274 | $ 248 | $ 199 | $ 145 | $ 79 |
Commercial Auto | Commercial | 2012 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 291 | 291 | 290 | 285 | 282 | 259 | 220 | 160 | $ 78 | |
Commercial Auto | Commercial | 2013 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 239 | 238 | 234 | 225 | 200 | 168 | 135 | $ 74 | ||
Commercial Auto | Commercial | 2014 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 198 | 196 | 187 | 166 | 137 | 102 | $ 64 | |||
Commercial Auto | Commercial | 2015 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 175 | 172 | 153 | 130 | 96 | $ 52 | ||||
Commercial Auto | Commercial | 2016 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 175 | 154 | 126 | 93 | $ 52 | |||||
Commercial Auto | Commercial | 2017 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 178 | 150 | 107 | $ 58 | ||||||
Commercial Auto | Commercial | 2018 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 175 | 128 | $ 66 | |||||||
Commercial Auto | Commercial | 2019 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 147 | $ 77 | ||||||||
Commercial Auto | Commercial | 2020 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | $ 71 |
Claim and Claim Adjustment E_22
Claim and Claim Adjustment Expense Reserves (Commercial - Commercial Auto - Net Strengthening or Releasing of Prior Accident Year Reserves) (Details) - Commercial - USD ($) $ in Millions | 12 Months Ended | 24 Months Ended | 36 Months Ended | 48 Months Ended | 60 Months Ended | 72 Months Ended | 84 Months Ended | 96 Months Ended | 108 Months Ended | 120 Months Ended | ||||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Total | $ 33 | $ (25) | $ 1 | |||||||||||||||
Commercial Auto | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 32 | (20) | (1) | |||||||||||||||
Total net development for accident years prior to 2011 | 1 | (4) | 1 | |||||||||||||||
Total unallocated claim adjustment expense development | 0 | (1) | 1 | |||||||||||||||
Total | 33 | (25) | 1 | |||||||||||||||
2011 | Commercial Auto | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 1 | (3) | 0 | $ 0 | $ (6) | $ (2) | $ 14 | $ 7 | $ 13 | $ 24 | ||||||||
2012 | Commercial Auto | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (1) | (2) | 0 | (8) | 4 | 4 | 10 | $ 14 | $ 21 | |||||||||
2013 | Commercial Auto | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 0 | (4) | 0 | (4) | (16) | 0 | $ 19 | $ (5) | ||||||||||
2014 | Commercial Auto | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 0 | (4) | 0 | (7) | (11) | $ (11) | $ (33) | |||||||||||
2015 | Commercial Auto | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (2) | (7) | 0 | (9) | $ (2) | $ (20) | ||||||||||||
2016 | Commercial Auto | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 4 | 0 | 0 | $ (12) | $ (8) | |||||||||||||
2017 | Commercial Auto | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 21 | 2 | $ (1) | $ 22 | ||||||||||||||
2018 | Commercial Auto | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 0 | $ (2) | $ (2) | |||||||||||||||
2019 | Commercial Auto | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | $ 9 | $ 9 |
Claim and Claim Adjustment E_23
Claim and Claim Adjustment Expense Reserves (Commercial - General Liability - Net Incurred Claims and Allocated Claim Adjustment Expenses) (Details) - General Liability - Commercial $ in Millions | Dec. 31, 2020USD ($)claim | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) |
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 6,541 | |||||||||
IBNR | 1,789 | |||||||||
2011 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | 667 | $ 667 | $ 669 | $ 670 | $ 681 | $ 676 | $ 677 | $ 631 | $ 589 | $ 591 |
IBNR | $ 21 | |||||||||
Cumulative Number of Claims | claim | 39,405 | |||||||||
2012 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 632 | 630 | 635 | 635 | 619 | 636 | 639 | 611 | $ 587 | |
IBNR | $ 24 | |||||||||
Cumulative Number of Claims | claim | 35,276 | |||||||||
2013 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 623 | 620 | 623 | 613 | 655 | 650 | 655 | $ 650 | ||
IBNR | $ 27 | |||||||||
Cumulative Number of Claims | claim | 33,649 | |||||||||
2014 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 659 | 658 | 635 | 631 | 654 | 658 | $ 653 | |||
IBNR | $ 44 | |||||||||
Cumulative Number of Claims | claim | 27,972 | |||||||||
2015 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 602 | 600 | 589 | 574 | 576 | $ 581 | ||||
IBNR | $ 38 | |||||||||
Cumulative Number of Claims | claim | 24,005 | |||||||||
2016 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 673 | 671 | 667 | 659 | $ 623 | |||||
IBNR | $ 104 | |||||||||
Cumulative Number of Claims | claim | 24,215 | |||||||||
2017 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 634 | 632 | 632 | $ 632 | ||||||
IBNR | $ 136 | |||||||||
Cumulative Number of Claims | claim | 21,781 | |||||||||
2018 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 646 | 644 | $ 653 | |||||||
IBNR | $ 302 | |||||||||
Cumulative Number of Claims | claim | 19,234 | |||||||||
2019 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 682 | $ 680 | ||||||||
IBNR | $ 453 | |||||||||
Cumulative Number of Claims | claim | 17,294 | |||||||||
2020 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 723 | |||||||||
IBNR | $ 640 | |||||||||
Cumulative Number of Claims | claim | 9,593 |
Claim and Claim Adjustment E_24
Claim and Claim Adjustment Expense Reserves (Commercial - General Liability - Net Cumulative Paid Claim and Claim Adjustment Expenses) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Total net liability for unpaid claim and claim adjustment expenses | $ 18,701 | $ 17,885 | $ 17,965 | $ 18,070 | ||||||
Commercial | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Total net liability for unpaid claim and claim adjustment expenses | 8,204 | 7,849 | ||||||||
General Liability | Commercial | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 4,108 | |||||||||
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented | 2,433 | |||||||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2011 | 812 | |||||||||
Liability for unallocated claim adjustment expenses for accident years presented | 60 | |||||||||
Total net liability for unpaid claim and claim adjustment expenses | 3,305 | |||||||||
General Liability | Commercial | 2011 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 640 | 638 | 622 | 602 | $ 568 | $ 517 | $ 411 | $ 273 | $ 148 | $ 28 |
General Liability | Commercial | 2012 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 597 | 579 | 559 | 510 | 454 | 374 | 247 | 132 | $ 28 | |
General Liability | Commercial | 2013 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 572 | 551 | 510 | 450 | 352 | 240 | 128 | $ 31 | ||
General Liability | Commercial | 2014 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 569 | 547 | 481 | 376 | 247 | 119 | $ 31 | |||
General Liability | Commercial | 2015 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 501 | 446 | 357 | 230 | 110 | $ 19 | ||||
General Liability | Commercial | 2016 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 481 | 407 | 279 | 163 | $ 32 | |||||
General Liability | Commercial | 2017 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 399 | 250 | 118 | $ 23 | ||||||
General Liability | Commercial | 2018 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 228 | 107 | $ 33 | |||||||
General Liability | Commercial | 2019 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 98 | $ 25 | ||||||||
General Liability | Commercial | 2020 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | $ 23 |
Claim and Claim Adjustment E_25
Claim and Claim Adjustment Expense Reserves (Commercial - General Liability - Net Strengthening or Releasing of Prior Accident Year Reserves) (Details) - Commercial - USD ($) $ in Millions | 12 Months Ended | 24 Months Ended | 36 Months Ended | 48 Months Ended | 60 Months Ended | 72 Months Ended | 84 Months Ended | 96 Months Ended | 108 Months Ended | 120 Months Ended | ||||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Total | $ 65 | $ 54 | $ 32 | |||||||||||||||
General Liability | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 16 | 19 | 36 | |||||||||||||||
Total net development for accident years prior to 2011 | 49 | 28 | 0 | |||||||||||||||
Total unallocated claim adjustment expense development | 0 | 7 | (4) | |||||||||||||||
Total | 65 | 54 | 32 | |||||||||||||||
General Liability | 2011 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 0 | (2) | (1) | $ (11) | $ 5 | $ (1) | $ 46 | $ 42 | $ (2) | $ 76 | ||||||||
General Liability | 2012 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 2 | (5) | 0 | 16 | (17) | (3) | 28 | $ 24 | $ 45 | |||||||||
General Liability | 2013 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 3 | (3) | 10 | (42) | 5 | (5) | $ 5 | $ (27) | ||||||||||
General Liability | 2014 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 1 | 23 | 4 | (23) | (4) | $ 5 | $ 6 | |||||||||||
General Liability | 2015 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 2 | 11 | 15 | (2) | $ (5) | $ 21 | ||||||||||||
General Liability | 2016 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 2 | 4 | 8 | $ 36 | $ 50 | |||||||||||||
General Liability | 2017 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 2 | 0 | $ 0 | $ 2 | ||||||||||||||
General Liability | 2018 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 2 | $ (9) | $ (7) | |||||||||||||||
General Liability | 2019 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | $ 2 | $ 2 |
Claim and Claim Adjustment E_26
Claim and Claim Adjustment Expense Reserves (Commercial - Workers' Compensation - Net Incurred Claims and Allocated Claim Adjustment Expenses) (Details) - Workers' Compensation - Commercial $ in Millions | Dec. 31, 2020USD ($)claim | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) |
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 4,854 | |||||||||
IBNR | 1,249 | |||||||||
2011 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | 698 | $ 688 | $ 674 | $ 676 | $ 676 | $ 651 | $ 659 | $ 647 | $ 641 | $ 607 |
IBNR | $ 42 | |||||||||
Cumulative Number of Claims | claim | 46,443 | |||||||||
2012 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 663 | 668 | 671 | 673 | 678 | 669 | 659 | 627 | $ 601 | |
IBNR | $ 62 | |||||||||
Cumulative Number of Claims | claim | 42,685 | |||||||||
2013 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 552 | 561 | 582 | 593 | 618 | 592 | 572 | $ 537 | ||
IBNR | $ 92 | |||||||||
Cumulative Number of Claims | claim | 38,758 | |||||||||
2014 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 439 | 446 | 450 | 452 | 479 | 480 | $ 467 | |||
IBNR | $ 97 | |||||||||
Cumulative Number of Claims | claim | 33,488 | |||||||||
2015 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 382 | 394 | 408 | 406 | 431 | $ 422 | ||||
IBNR | $ 116 | |||||||||
Cumulative Number of Claims | claim | 31,876 | |||||||||
2016 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 366 | 382 | 396 | 405 | $ 426 | |||||
IBNR | $ 121 | |||||||||
Cumulative Number of Claims | claim | 31,967 | |||||||||
2017 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 400 | 421 | 432 | $ 440 | ||||||
IBNR | $ 97 | |||||||||
Cumulative Number of Claims | claim | 33,094 | |||||||||
2018 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 428 | 440 | $ 450 | |||||||
IBNR | $ 129 | |||||||||
Cumulative Number of Claims | claim | 34,800 | |||||||||
2019 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 449 | $ 452 | ||||||||
IBNR | $ 181 | |||||||||
Cumulative Number of Claims | claim | 34,020 | |||||||||
2020 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 477 | |||||||||
IBNR | $ 312 | |||||||||
Cumulative Number of Claims | claim | 24,980 |
Claim and Claim Adjustment E_27
Claim and Claim Adjustment Expense Reserves (Commercial - Workers' Compensation - Net Cumulative Paid Claim and Claim Adjustment Expenses) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Total net liability for unpaid claim and claim adjustment expenses | $ 18,701 | $ 17,885 | $ 17,965 | $ 18,070 | ||||||
Commercial | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Total net liability for unpaid claim and claim adjustment expenses | 8,204 | 7,849 | ||||||||
Workers' Compensation | Commercial | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 3,000 | |||||||||
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented | 1,854 | |||||||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2011 | 1,984 | |||||||||
Other | (15) | |||||||||
Liability for unallocated claim adjustment expenses for accident years presented | 49 | |||||||||
Total net liability for unpaid claim and claim adjustment expenses | 3,872 | |||||||||
Workers' Compensation | 2011 | Commercial | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 583 | 581 | 571 | 564 | $ 522 | $ 478 | $ 438 | $ 358 | $ 249 | $ 99 |
Workers' Compensation | 2012 | Commercial | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 538 | 536 | 524 | 509 | 470 | 416 | 342 | 232 | $ 87 | |
Workers' Compensation | 2013 | Commercial | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 414 | 411 | 419 | 417 | 370 | 300 | 213 | $ 80 | ||
Workers' Compensation | 2014 | Commercial | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 297 | 290 | 282 | 258 | 215 | 159 | $ 61 | |||
Workers' Compensation | 2015 | Commercial | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 243 | 231 | 212 | 180 | 131 | $ 51 | ||||
Workers' Compensation | 2016 | Commercial | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 219 | 198 | 169 | 129 | $ 53 | |||||
Workers' Compensation | 2017 | Commercial | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 243 | 207 | 151 | $ 63 | ||||||
Workers' Compensation | 2018 | Commercial | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 229 | 163 | $ 68 | |||||||
Workers' Compensation | 2019 | Commercial | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 169 | $ 71 | ||||||||
Workers' Compensation | 2020 | Commercial | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | $ 65 |
Claim and Claim Adjustment E_28
Claim and Claim Adjustment Expense Reserves (Commercial - Workers' Compensation - Net Strengthening or Releasing of Prior Accident Year Reserves) (Details) - Commercial - USD ($) $ in Millions | 12 Months Ended | 24 Months Ended | 36 Months Ended | 48 Months Ended | 60 Months Ended | 72 Months Ended | 84 Months Ended | 96 Months Ended | 108 Months Ended | 120 Months Ended | ||||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Total | $ (96) | $ (13) | $ (32) | |||||||||||||||
Workers' Compensation | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (75) | (63) | (32) | |||||||||||||||
Adjustment for development on a discounted basis | 2 | 3 | 0 | |||||||||||||||
Total net development for accident years prior to 2011 | (23) | 24 | 7 | |||||||||||||||
Total unallocated claim adjustment expense development | 0 | 23 | (7) | |||||||||||||||
Total | (96) | (13) | (32) | |||||||||||||||
Workers' Compensation | 2011 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 10 | 14 | (2) | $ 0 | $ 25 | $ (8) | $ 12 | $ 6 | $ 34 | $ 91 | ||||||||
Workers' Compensation | 2012 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (5) | (3) | (2) | (5) | 9 | 10 | 32 | $ 26 | $ 62 | |||||||||
Workers' Compensation | 2013 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (9) | (21) | (11) | (25) | 26 | 20 | $ 35 | $ 15 | ||||||||||
Workers' Compensation | 2014 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (7) | (4) | (2) | (27) | (1) | $ 13 | $ (28) | |||||||||||
Workers' Compensation | 2015 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (12) | (14) | 2 | (25) | $ 9 | $ (40) | ||||||||||||
Workers' Compensation | 2016 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (16) | (14) | (9) | $ (21) | $ (60) | |||||||||||||
Workers' Compensation | 2017 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (21) | (11) | $ (8) | $ (40) | ||||||||||||||
Workers' Compensation | 2018 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (12) | $ (10) | $ (22) | |||||||||||||||
Workers' Compensation | 2019 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | $ (3) | $ (3) |
Claim and Claim Adjustment E_29
Claim and Claim Adjustment Expense Reserves (International - Net prior year claim and allocated claim adjustment expense reserve development) (Details) - International - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Casualty | $ (13) | $ (20) | $ (17) |
Property, Energy and Marine | 13 | 25 | 0 |
Specialty | (2) | 16 | 13 |
Total pretax (favorable) unfavorable development | $ (2) | $ 21 | $ (4) |
Claim and Claim Adjustment E_30
Claim and Claim Adjustment Expense Reserves (International - Short Duration Contracts) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total net liability for unpaid claim and claim adjustment expenses | $ 18,701 | $ 17,885 | $ 17,965 | $ 18,070 |
International | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total net liability for unpaid claim and claim adjustment expenses | 1,822 | $ 1,628 | ||
Excluding Hardy | International | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total net liability for unpaid claim and claim adjustment expenses | 1,282 | |||
Hardy | International | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total net liability for unpaid claim and claim adjustment expenses | $ 540 |
Claim and Claim Adjustment E_31
Claim and Claim Adjustment Expense Reserves (International - Excluding Hardy - Net Incurred Claims and Allocated Claim Adjustment Expenses) (Details) - Excluding Hardy - International $ in Millions | Dec. 31, 2020USD ($)claim | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) |
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 3,218 | |||||||||
IBNR | 714 | |||||||||
2011 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | 221 | $ 223 | $ 230 | $ 233 | $ 235 | $ 242 | $ 254 | $ 275 | $ 283 | $ 282 |
IBNR | $ (1) | |||||||||
Cumulative Number of Claims | claim | 24,526 | |||||||||
2012 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 242 | 246 | 252 | 259 | 267 | 267 | 275 | 290 | $ 283 | |
IBNR | $ 12 | |||||||||
Cumulative Number of Claims | claim | 24,901 | |||||||||
2013 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 252 | 256 | 265 | 274 | 278 | 299 | 307 | $ 305 | ||
IBNR | $ 10 | |||||||||
Cumulative Number of Claims | claim | 23,808 | |||||||||
2014 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 308 | 306 | 288 | 296 | 309 | 309 | $ 293 | |||
IBNR | $ 21 | |||||||||
Cumulative Number of Claims | claim | 24,601 | |||||||||
2015 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 301 | 298 | 304 | 322 | 324 | $ 307 | ||||
IBNR | $ 35 | |||||||||
Cumulative Number of Claims | claim | 22,675 | |||||||||
2016 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 294 | 304 | 307 | 322 | $ 302 | |||||
IBNR | $ 37 | |||||||||
Cumulative Number of Claims | claim | 15,363 | |||||||||
2017 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 399 | 407 | 385 | $ 318 | ||||||
IBNR | $ 99 | |||||||||
Cumulative Number of Claims | claim | 16,086 | |||||||||
2018 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 416 | 411 | $ 393 | |||||||
IBNR | $ 105 | |||||||||
Cumulative Number of Claims | claim | 20,423 | |||||||||
2019 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 379 | $ 365 | ||||||||
IBNR | $ 124 | |||||||||
Cumulative Number of Claims | claim | 16,890 | |||||||||
2020 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 406 | |||||||||
IBNR | $ 272 | |||||||||
Cumulative Number of Claims | claim | 10,498 |
Claim and Claim Adjustment E_32
Claim and Claim Adjustment Expense Reserves (International - Excluding Hardy - Net Cumulative Paid Claim and Claim Adjustment Expenses) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Total net liability for unpaid claim and claim adjustment expenses | $ 18,701 | $ 17,885 | $ 17,965 | $ 18,070 | ||||||
International | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Total net liability for unpaid claim and claim adjustment expenses | 1,822 | 1,628 | ||||||||
Excluding Hardy | International | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 2,017 | |||||||||
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented | 1,201 | |||||||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2011 | 47 | |||||||||
Liability for unallocated claim adjustment expenses for accident years presented | 34 | |||||||||
Total net liability for unpaid claim and claim adjustment expenses | 1,282 | |||||||||
Excluding Hardy | 2011 | International | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 202 | 200 | 197 | 193 | $ 184 | $ 172 | $ 158 | $ 144 | $ 121 | $ 47 |
Excluding Hardy | 2012 | International | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 220 | 218 | 214 | 204 | 191 | 175 | 153 | 119 | $ 46 | |
Excluding Hardy | 2013 | International | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 222 | 209 | 190 | 179 | 164 | 147 | 118 | $ 52 | ||
Excluding Hardy | 2014 | International | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 250 | 214 | 193 | 175 | 157 | 128 | $ 54 | |||
Excluding Hardy | 2015 | International | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 231 | 216 | 192 | 171 | 139 | $ 59 | ||||
Excluding Hardy | 2016 | International | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 204 | 191 | 167 | 139 | $ 70 | |||||
Excluding Hardy | 2017 | International | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 226 | 196 | 154 | $ 67 | ||||||
Excluding Hardy | 2018 | International | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 226 | 177 | $ 96 | |||||||
Excluding Hardy | 2019 | International | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 173 | $ 77 | ||||||||
Excluding Hardy | 2020 | International | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | $ 63 |
Claim and Claim Adjustment E_33
Claim and Claim Adjustment Expense Reserves (International - Excluding Hardy - Net Strengthening or Releasing of Prior Accident Year Reserves) (Details) - Excluding Hardy - International - USD ($) $ in Millions | 12 Months Ended | 24 Months Ended | 36 Months Ended | 48 Months Ended | 60 Months Ended | 72 Months Ended | 84 Months Ended | 96 Months Ended | 108 Months Ended | 120 Months Ended | ||||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | |
2011 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | $ (2) | $ (7) | $ (3) | $ (2) | $ (7) | $ (12) | $ (21) | $ (8) | $ 1 | $ (61) | ||||||||
2012 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (4) | (6) | (7) | (8) | 0 | (8) | (15) | $ 7 | $ (41) | |||||||||
2013 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (4) | (9) | (9) | (4) | (21) | (8) | $ 2 | $ (53) | ||||||||||
2014 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 2 | 18 | (8) | (13) | 0 | $ 16 | $ 15 | |||||||||||
2015 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 3 | (6) | (18) | (2) | $ 17 | $ (6) | ||||||||||||
2016 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (10) | (3) | (15) | $ 20 | $ (8) | |||||||||||||
2017 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (8) | 22 | $ 67 | $ 81 | ||||||||||||||
2018 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 5 | $ 18 | $ 23 | |||||||||||||||
2019 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | $ 14 | $ 14 |
Claim and Claim Adjustment E_34
Claim and Claim Adjustment Expense Reserves (International - Hardy - Net Incurred Claims and Allocated Claim Adjustment Expenses) (Details) - Hardy - International $ in Millions | Dec. 31, 2020USD ($)claim | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) |
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | |||||||||
Incurred claims and allocated claim adjustment expense, net | $ 2,000 | ||||||||
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented | 526 | ||||||||
IBNR | 275 | ||||||||
2011 | |||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | |||||||||
Net Claim and Allocated Claim Adjustment Expense Reserves at Acquisition | $ 130 | ||||||||
Incurred claims and allocated claim adjustment expense, net | 147 | $ 146 | $ 146 | $ 144 | $ 143 | $ 144 | $ 139 | $ 140 | (2) |
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented | 128 | ||||||||
IBNR | $ (1) | ||||||||
Cumulative Number of Claims | claim | 6,307 | ||||||||
2012 | |||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | |||||||||
Net Claim and Allocated Claim Adjustment Expense Reserves at Acquisition | 34 | ||||||||
Incurred claims and allocated claim adjustment expense, net | $ 115 | 117 | 118 | 116 | 115 | 122 | 114 | 106 | 72 |
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented | $ 106 | ||||||||
IBNR | $ (1) | ||||||||
Cumulative Number of Claims | claim | 6,970 | ||||||||
2013 | |||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | |||||||||
Incurred claims and allocated claim adjustment expense, net | $ 147 | 147 | 147 | 143 | 142 | 140 | 149 | $ 133 | |
IBNR | $ 2 | ||||||||
Cumulative Number of Claims | claim | 7,744 | ||||||||
2014 | |||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | |||||||||
Incurred claims and allocated claim adjustment expense, net | $ 173 | 175 | 174 | 173 | 180 | 186 | $ 188 | ||
IBNR | $ 0 | ||||||||
Cumulative Number of Claims | claim | 8,302 | ||||||||
2015 | |||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | |||||||||
Incurred claims and allocated claim adjustment expense, net | $ 182 | 181 | 182 | 181 | 183 | $ 194 | |||
IBNR | $ (5) | ||||||||
Cumulative Number of Claims | claim | 9,401 | ||||||||
2016 | |||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | |||||||||
Incurred claims and allocated claim adjustment expense, net | $ 230 | 228 | 240 | 252 | $ 233 | ||||
IBNR | $ 12 | ||||||||
Cumulative Number of Claims | claim | 10,369 | ||||||||
2017 | |||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | |||||||||
Incurred claims and allocated claim adjustment expense, net | $ 247 | 246 | 258 | $ 248 | |||||
IBNR | $ 5 | ||||||||
Cumulative Number of Claims | claim | 12,430 | ||||||||
2018 | |||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | |||||||||
Incurred claims and allocated claim adjustment expense, net | $ 314 | 310 | $ 278 | ||||||
IBNR | $ 44 | ||||||||
Cumulative Number of Claims | claim | 14,076 | ||||||||
2019 | |||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | |||||||||
Incurred claims and allocated claim adjustment expense, net | $ 229 | $ 226 | |||||||
IBNR | $ 76 | ||||||||
Cumulative Number of Claims | claim | 9,648 | ||||||||
2020 | |||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | |||||||||
Incurred claims and allocated claim adjustment expense, net | $ 216 | ||||||||
IBNR | $ 143 | ||||||||
Cumulative Number of Claims | claim | 4,081 |
Claim and Claim Adjustment E_35
Claim and Claim Adjustment Expense Reserves (International - Hardy - Net Cumulative Paid Claim and Claim Adjustment Expenses) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | |||||||||
Total net liability for unpaid claim and claim adjustment expenses | $ 18,701 | $ 17,885 | $ 17,965 | $ 18,070 | |||||
International | |||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | |||||||||
Total net liability for unpaid claim and claim adjustment expenses | 1,822 | 1,628 | |||||||
Hardy | International | |||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | |||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 1,474 | ||||||||
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented | 526 | ||||||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2011 | 5 | ||||||||
Liability for unallocated claim adjustment expenses for accident years presented | 9 | ||||||||
Total net liability for unpaid claim and claim adjustment expenses | 540 | ||||||||
Hardy | International | 2011 | |||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | |||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 142 | 141 | 140 | 138 | $ 136 | $ 133 | $ 128 | $ 86 | $ 31 |
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented | 128 | ||||||||
Hardy | International | 2012 | |||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | |||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 115 | 113 | 113 | 112 | 109 | 111 | 102 | 81 | 15 |
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented | $ 106 | ||||||||
Hardy | International | 2013 | |||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | |||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 142 | 140 | 136 | 133 | 129 | 123 | 103 | $ 39 | |
Hardy | International | 2014 | |||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | |||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 166 | 164 | 159 | 153 | 143 | 125 | $ 57 | ||
Hardy | International | 2015 | |||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | |||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 164 | 160 | 147 | 132 | 99 | $ 30 | |||
Hardy | International | 2016 | |||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | |||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 198 | 185 | 175 | 148 | $ 64 | ||||
Hardy | International | 2017 | |||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | |||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 208 | 186 | 152 | $ 54 | |||||
Hardy | International | 2018 | |||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | |||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 207 | 179 | $ 56 | ||||||
Hardy | International | 2019 | |||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | |||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 104 | $ 44 | |||||||
Hardy | International | 2020 | |||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | |||||||||
Cumulative paid claims and allocated claim adjustment expense, net | $ 28 |
Claim and Claim Adjustment E_36
Claim and Claim Adjustment Expense Reserves (International - Hardy - Net Strengthening or Releasing of Prior Accident Year Reserves) (Details) - International - Hardy - USD ($) $ in Millions | 12 Months Ended | 24 Months Ended | 36 Months Ended | 48 Months Ended | 60 Months Ended | 72 Months Ended | 84 Months Ended | 96 Months Ended | 108 Months Ended | 120 Months Ended | ||||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | |
2011 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | $ 1 | $ 0 | $ 2 | $ 1 | $ (1) | $ 5 | $ (1) | $ 12 | $ (2) | $ 17 | ||||||||
2012 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (2) | (1) | 2 | 1 | (7) | 8 | 8 | $ 0 | $ 9 | |||||||||
2013 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 0 | 0 | 4 | 1 | 2 | (9) | $ 16 | $ 14 | ||||||||||
2014 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (2) | 1 | 1 | (7) | (6) | $ (2) | $ (15) | |||||||||||
2015 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 1 | (1) | 1 | (2) | $ (11) | $ (12) | ||||||||||||
2016 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 2 | (12) | (12) | $ 19 | $ (3) | |||||||||||||
2017 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 1 | (12) | $ 10 | $ (1) | ||||||||||||||
2018 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 4 | $ 32 | $ 36 | |||||||||||||||
2019 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | $ 3 | $ 3 |
Claim and Claim Adjustment E_37
Claim and Claim Adjustment Expense Reserves (Historical Claims Duration) (Details) | Dec. 31, 2020 |
Medical Professional Liability | Specialty | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 3.70% |
Year 2 | 19.50% |
Year 3 | 24.00% |
Year 4 | 18.40% |
Year 5 | 12.20% |
Year 6 | 8.20% |
Year 7 | 5.20% |
Year 8 | 3.10% |
Year 9 | 0.90% |
Year 10 | 4.10% |
Other Professional Liability and Management Liability | Specialty | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 7.00% |
Year 2 | 22.90% |
Year 3 | 21.40% |
Year 4 | 16.30% |
Year 5 | 10.10% |
Year 6 | 6.60% |
Year 7 | 4.40% |
Year 8 | 2.30% |
Year 9 | 3.00% |
Year 10 | 2.60% |
Surety | Specialty | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 18.30% |
Year 2 | 44.60% |
Year 3 | 20.00% |
Year 4 | 3.50% |
Year 5 | 2.20% |
Year 6 | 1.20% |
Year 7 | (0.70%) |
Year 8 | 0.90% |
Year 9 | (1.40%) |
Year 10 | 0.00% |
Commercial Auto | Commercial | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 27.90% |
Year 2 | 24.00% |
Year 3 | 18.30% |
Year 4 | 14.00% |
Year 5 | 9.80% |
Year 6 | 2.90% |
Year 7 | 1.30% |
Year 8 | 0.50% |
Year 9 | 0.00% |
Year 10 | 0.30% |
General Liability | Commercial | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 4.20% |
Year 2 | 15.00% |
Year 3 | 18.90% |
Year 4 | 20.30% |
Year 5 | 14.30% |
Year 6 | 9.10% |
Year 7 | 5.70% |
Year 8 | 3.20% |
Year 9 | 2.60% |
Year 10 | 0.30% |
Workers' Compensation | Commercial | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 14.50% |
Year 2 | 21.90% |
Year 3 | 14.20% |
Year 4 | 10.10% |
Year 5 | 6.40% |
Year 6 | 3.50% |
Year 7 | 2.10% |
Year 8 | 1.10% |
Year 9 | 0.90% |
Year 10 | 0.30% |
Excluding Hardy | International | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 19.80% |
Year 2 | 25.60% |
Year 3 | 11.00% |
Year 4 | 7.20% |
Year 5 | 6.20% |
Year 6 | 5.40% |
Year 7 | 6.90% |
Year 8 | 2.90% |
Year 9 | 1.10% |
Year 10 | 0.90% |
Hardy | International | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 22.00% |
Year 2 | 37.50% |
Year 3 | 12.80% |
Year 4 | 6.30% |
Year 5 | 4.70% |
Year 6 | 2.40% |
Year 7 | 1.90% |
Year 8 | 1.40% |
Claim and Claim Adjustment E_38
Claim and Claim Adjustment Expense Reserves (Impact of Loss Portfolio Transfer on the Consolidated Statement of Operations) (Details) - Asbestos and Environmental Reserves - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Net A&EP adverse development before consideration of LPT | $ 125 | $ 150 | $ 178 |
Provision for uncollectible third-party reinsurance on A&EP | (25) | (25) | (16) |
Total additional amounts ceded under LPT | 100 | 125 | 162 |
Retroactive reinsurance benefit recognized | (94) | (107) | (114) |
Pretax impact of deferred retroactive reinsurance | $ 6 | $ 18 | $ 48 |
Claim and Claim Adjustment E_39
Claim and Claim Adjustment Expense Reserves (Life & Group Policyholder Reserves) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2020 | |
Liability for Claims and Claims Adjustment Expense [Abstract] | ||||
Liability for unpaid claims and claims adjustment expense structured settlement obligations period increase (decrease) | $ 46 | |||
Liability for unpaid claims and claims adjustment expense, long term care policies, period increase (decrease) | 37 | |||
Liability for unpaid claims and claims adjustment expense, period increase (decrease) | $ 56 | $ 31 | ||
Premium deficiency and future policy benefit | $ 74 | $ 216 | $ 74 |
Legal Proceedings, Contingenc_2
Legal Proceedings, Contingencies and Guarantees (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Legal Proceedings, Commitments and Contingencies, and Guarantees [Line Items] | ||
Decrease earned premiums | $ 14 | |
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 |
Reinsurance (Components of Rein
Reinsurance (Components of Reinsurance Receivables) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Reinsurance receivables related to insurance reserves | ||||
Ceded claim and claim adjustment expenses | $ 4,005 | $ 3,835 | $ 4,019 | $ 3,934 |
Ceded future policy benefits | 263 | 226 | ||
Reinsurance receivables related to paid losses | 210 | 143 | ||
Reinsurance receivables | 4,478 | 4,204 | ||
Allowance for uncollectible reinsurance | (21) | (25) | ||
Reinsurance receivables, net of allowance for uncollectible reinsurance | $ 4,457 | $ 4,179 |
Reinsurance (Voluntary Reinsura
Reinsurance (Voluntary Reinsurance) (Details) $ in Millions | Dec. 31, 2020USD ($) |
Effects of Reinsurance [Line Items] | |
Total voluntary reinsurance outstanding balance | $ 3,727 |
A- to A++ | |
Effects of Reinsurance [Line Items] | |
Total voluntary reinsurance outstanding balance | 2,820 |
B- to B++ | |
Effects of Reinsurance [Line Items] | |
Total voluntary reinsurance outstanding balance | 904 |
Insolvent | |
Effects of Reinsurance [Line Items] | |
Total voluntary reinsurance outstanding balance | $ 3 |
Reinsurance (Narrative) (Detail
Reinsurance (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Ceded Credit Risk [Line Items] | |||
Funds held under reinsurance agreements, liability | $ 3,300 | $ 3,200 | |
Largest recoverable from single reinsurer | 4,457 | 4,179 | |
Reinsurance recoveries reported in insurance claims and policyholders' benefits reported on the Consolidated Statement of Operations | 3,158 | 2,733 | $ 2,836 |
Subsidiaries of Berkshire Hathaway Group | |||
Ceded Credit Risk [Line Items] | |||
Largest recoverable from single reinsurer | 1,900 | ||
Palo Verde Insurance Company | |||
Ceded Credit Risk [Line Items] | |||
Largest recoverable from single reinsurer | 377 | ||
Subsidiaries of Wilton Re | |||
Ceded Credit Risk [Line Items] | |||
Largest recoverable from single reinsurer | 314 | ||
Significant Captive Program | |||
Ceded Credit Risk [Line Items] | |||
Direct and ceded earned premiums | 3,543 | 3,578 | 3,740 |
Reinsurance recoveries reported in insurance claims and policyholders' benefits reported on the Consolidated Statement of Operations | $ 2,375 | $ 2,080 | $ 1,927 |
Reinsurance (Components of Earn
Reinsurance (Components of Earned Premiums) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Premiums Earned, Net [Abstract] | |||
Direct | $ 12,001 | $ 11,491 | $ 11,337 |
Assumed | 288 | 338 | 355 |
Ceded | 4,640 | 4,401 | 4,380 |
Net | 7,649 | 7,428 | 7,312 |
Property and casualty | |||
Premiums Earned, Net [Abstract] | |||
Direct | 11,547 | 11,021 | 10,857 |
Assumed | 238 | 288 | 305 |
Ceded | 4,640 | 4,401 | 4,380 |
Net | 7,145 | 6,908 | 6,782 |
Long term care | |||
Premiums Earned, Net [Abstract] | |||
Direct | 454 | 470 | 480 |
Assumed | 50 | 50 | 50 |
Ceded | 0 | 0 | 0 |
Net | $ 504 | $ 520 | $ 530 |
Percentage of assumed premiums earned to net premiums earned | |||
Premiums Earned, Net [Abstract] | |||
Assumed/ Net % | 3.80% | 4.60% | 4.90% |
Percentage of assumed premiums earned to net premiums earned | Property and casualty | |||
Premiums Earned, Net [Abstract] | |||
Assumed/ Net % | 3.30% | 4.20% | 4.50% |
Percentage of assumed premiums earned to net premiums earned | Long term care | |||
Premiums Earned, Net [Abstract] | |||
Assumed/ Net % | 9.90% | 9.60% | 9.40% |
Reinsurance (Components of Writ
Reinsurance (Components of Written Premiums) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Premiums Written, Net [Abstract] | |||
Direct | $ 12,612 | $ 11,894 | $ 11,568 |
Assumed | 279 | 331 | 360 |
Ceded | 4,832 | 4,569 | 4,583 |
Net | 8,059 | 7,656 | 7,345 |
Property and casualty | |||
Premiums Written, Net [Abstract] | |||
Direct | 12,168 | 11,421 | 11,094 |
Assumed | 229 | 281 | 310 |
Ceded | 4,832 | 4,569 | 4,583 |
Net | 7,565 | 7,133 | 6,821 |
Long term care | |||
Premiums Written, Net [Abstract] | |||
Direct | 444 | 473 | 474 |
Assumed | 50 | 50 | 50 |
Ceded | 0 | 0 | 0 |
Net | $ 494 | $ 523 | $ 524 |
Percentage of assumed premiums written to net premiums written | |||
Premiums Written, Net [Abstract] | |||
Assumed/ Net % | 3.50% | 4.30% | 4.90% |
Percentage of assumed premiums written to net premiums written | Property and casualty | |||
Premiums Written, Net [Abstract] | |||
Assumed/ Net % | 3.00% | 3.90% | 4.50% |
Percentage of assumed premiums written to net premiums written | Long term care | |||
Premiums Written, Net [Abstract] | |||
Assumed/ Net % | 10.10% | 9.60% | 9.50% |
Debt (Schedule of debt instrume
Debt (Schedule of debt instruments) (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Long term debt | $ 2,776,000,000 | $ 2,679,000,000 |
Total | $ 2,776,000,000 | 2,679,000,000 |
5.750%, face amount of $400, due August 15, 2021 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 5.75% | |
Face amount | $ 400,000,000 | |
Long term debt | $ 0 | 399,000,000 |
3.950%, face amount of $550, due May 15, 2024 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 3.95% | |
Face amount | $ 550,000,000 | |
Long term debt | $ 548,000,000 | 548,000,000 |
4.500%, face amount of $500, due March 1, 2026 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.50% | |
Face amount | $ 500,000,000 | |
Long term debt | $ 499,000,000 | 498,000,000 |
3.450%, face amount of $500, due August 15, 2027 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 3.45% | |
Face amount | $ 500,000,000 | |
Long term debt | $ 496,000,000 | 496,000,000 |
3.900%, face amount of $500, due May 1, 2029 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 3.90% | |
Face amount | $ 500,000,000 | |
Long term debt | $ 496,000,000 | 496,000,000 |
2.050%, face amount of $500, due August 15, 2030 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 2.05% | |
Face amount | $ 500,000,000 | |
Long term debt | $ 495,000,000 | 0 |
Debenture of CNAF, 7.250%, face amount of $243, due November 15, 2023 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 7.25% | |
Face amount | $ 243,000,000 | |
Long term debt | $ 242,000,000 | $ 242,000,000 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2019USD ($)extensionTerm | Dec. 31, 2020USD ($) | |
Debt Disclosure [Abstract] | ||
Federal Home Loan Bank stock | $ 5,000,000 | |
Federal Home Loan Bank, advances, general debt obligations, maximum amount available | 111,000,000 | |
Federal Home Loan Bank, advances, branch of FHLB Bank, amount of advances | $ 0 | 0 |
Debt instrument, term | 5 years | |
Line of credit, current borrowing capacity | $ 250,000,000 | |
Additional borrowing capacity available | $ 100,000,000 | |
Number of extension options | extensionTerm | 2 | |
Extension term | 1 year | |
Line of credit, minimum net worth required for compliance | 8,700,000,000 | |
Line of credit, amount outstanding | $ 0 | $ 0 |
Debt (Maturity of debt) (Detail
Debt (Maturity of debt) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
2021 | $ 0 | |
2022 | 0 | |
2023 | 243 | |
2024 | 550 | |
2025 | 0 | |
Thereafter | 2,000 | |
Less: discount | (17) | |
Total | $ 2,776 | $ 2,679 |
Benefit Plans (Funded Status) (
Benefit Plans (Funded Status) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in benefit obligation: | |||
Actuarial (gain) loss | $ 205 | $ 261 | |
Pension Benefits | |||
Changes in benefit obligation: | |||
Balance at beginning of period | 2,661 | 2,466 | |
Interest cost | 80 | 100 | $ 93 |
Participants' contributions | 0 | 0 | |
Actuarial (gain) loss | 205 | 261 | |
Benefits paid | (173) | (169) | |
Foreign currency translation and other | 3 | 3 | |
Settlements | (7) | 0 | |
Balance at end of period | 2,769 | 2,661 | 2,466 |
Change in plan assets: | |||
Balance beginning of period | 2,285 | 2,025 | |
Actual return on plan assets | 295 | 292 | |
Company contributions | 16 | 134 | |
Participants' contributions | 0 | 0 | |
Benefits paid | (173) | (169) | |
Foreign currency translation and other | 4 | 3 | |
Settlements | (7) | 0 | |
Balance end of period | 2,420 | 2,285 | 2,025 |
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | |||
Funded status | (349) | (376) | |
Amounts recognized on the Consolidated Balance Sheets as of December 31: | |||
Other assets | 2 | 5 | |
Other liabilities | (351) | (381) | |
Net amount recognized | (349) | (376) | |
Amounts recognized in Accumulated other comprehensive income, not yet recognized in net periodic cost (benefit): | |||
Net actuarial (gain) loss | 1,073 | 1,056 | |
Net amount recognized | 1,073 | 1,056 | |
Postretirement Benefits | |||
Changes in benefit obligation: | |||
Balance at beginning of period | 8 | 9 | |
Interest cost | 0 | 0 | |
Participants' contributions | 2 | 4 | |
Actuarial (gain) loss | 2 | 1 | |
Benefits paid | (5) | (6) | |
Foreign currency translation and other | 0 | 0 | |
Settlements | 0 | 0 | |
Balance at end of period | 7 | 8 | 9 |
Change in plan assets: | |||
Balance beginning of period | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Company contributions | 3 | 2 | |
Participants' contributions | 2 | 4 | |
Benefits paid | (5) | (6) | |
Foreign currency translation and other | 0 | 0 | |
Settlements | 0 | 0 | |
Balance end of period | 0 | 0 | $ 0 |
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | |||
Funded status | (7) | (8) | |
Amounts recognized on the Consolidated Balance Sheets as of December 31: | |||
Other assets | 0 | 0 | |
Other liabilities | (7) | (8) | |
Net amount recognized | (7) | (8) | |
Amounts recognized in Accumulated other comprehensive income, not yet recognized in net periodic cost (benefit): | |||
Net actuarial (gain) loss | 0 | (2) | |
Net amount recognized | $ 0 | $ (2) |
Benefit Plans (Narrative) (Deta
Benefit Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Actuarial (gain) loss | $ 205 | $ 261 | |
Assumptions used in calculating assumed health care cost trend rate | 4.00% | ||
Percentage of limited partnerships employing hedge fund strategies focused on fixed income and equity investments | 51.00% | 61.00% | |
Defined contribution plan, maximum annual contributions per employee, percent | 50.00% | ||
Defined contribution plan, employer matching contribution, percent of match | 100.00% | 70.00% | |
Defined contribution plan, employer matching contribution, percent of employees' gross pay | 6.00% | 6.00% | |
Company contribution of eligible compensation, depending on age, percent | 5.00% | ||
Defined contribution plan, employers matching contribution, vesting period in years | 5 years | ||
Defined contribution plan, employer matching contribution, first year of employment, percent of match | 35.00% | ||
Benefit expense for the Company's savings plan | $ 70 | $ 71 | $ 71 |
Additional Contribution, Management Discretion | |||
Defined contribution plan, employer matching contribution, percent of match | 80.00% | ||
Defined contribution plan, employer matching contribution, percent of employees' gross pay | 6.00% | ||
Defined contribution plan, employer discretionary contribution amount, percent | 2.00% | ||
Pension Benefits | |||
Defined benefit plan, accumulated benefit obligation | 2,769 | $ 2,661 | |
Actuarial (gain) loss | 205 | $ 261 | |
Future capital call commitments for limited partnership investments | $ 190 | ||
Percentage of limited partnerships employing hedge fund strategies focused on fixed income and equity investments | 75.00% | 79.00% | |
Limited partnership equity related hedge fund strategy plan assets | 69.00% | ||
Limited partnership hedge fund multi strategy plan assets | 27.00% | ||
Limited partnership hedge fund strategy distressed investments plan assets | 4.00% | ||
Defined benefit plan, expected future employer contributions, next fiscal year | $ 6 | ||
Postretirement Benefits | |||
Actuarial (gain) loss | $ 2 | $ 1 | |
Defined benefit plan, health care cost trend rate assumed for next fiscal year | 4.00% | 4.00% | 4.00% |
Defined benefit plan, expected future employer contributions, next fiscal year | $ 1 | ||
Minimum | |||
Defined benefit plan, plan assets, target allocation, percentage | 40.00% | ||
Company contribution of eligible compensation, depending on age, percent | 3.00% | ||
Maximum | |||
Defined benefit plan, plan assets, target allocation, percentage | 60.00% | ||
Company contribution of eligible compensation, depending on age, percent | 5.00% | ||
Insurance Claims and Policyholder's Benefits, Including Policyholder's Dividends | Pension Benefits | |||
Net periodic defined benefits expense (reversal of expense), excluding service cost component | $ 8 | $ 1 | $ 8 |
Other Expense | Pension Benefits | |||
Net periodic defined benefits expense (reversal of expense), excluding service cost component | $ 19 | $ 2 | $ 15 |
Benefit Plans (Components of ne
Benefit Plans (Components of net periodic cost (benefit)) (Details) - Pension Benefits - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost on projected benefit obligation | $ 80 | $ 100 | $ 93 |
Expected return on plan assets | (155) | (142) | (159) |
Amortization of net actuarial (gain) loss | 45 | 39 | 37 |
Settlement loss | 3 | 0 | 6 |
Total net periodic pension cost (benefit) | $ (27) | $ (3) | $ (23) |
Benefit Plans (Schedule of amou
Benefit Plans (Schedule of amounts recognized in Other comprehensive income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |||
Amounts arising during the period | $ (67) | $ (112) | $ (41) |
Settlement | 3 | 0 | 6 |
Reclassification adjustment relating to prior service credit | 0 | 0 | (2) |
Reclassification adjustment relating to actuarial loss | 45 | 39 | 36 |
Total increase (decrease) in Other comprehensive income | $ (19) | $ (73) | $ (1) |
Benefit Plans (Actuarial Assump
Benefit Plans (Actuarial Assumptions for Benefit Obligations) (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Interest crediting rate | 3.00% | 5.00% | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.35% | 3.15% | |
Interest crediting rate | 5.00% | 5.00% | 5.00% |
Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 1.60% | 2.30% |
Benefit Plans (Actuarial Assu_2
Benefit Plans (Actuarial Assumptions for Net Cost or Benefit) (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Interest crediting rate | 3.00% | 5.00% | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.15% | 4.25% | 3.55% |
Expected long term rate of return | 7.25% | 7.50% | 7.50% |
Interest crediting rate | 5.00% | 5.00% | 5.00% |
Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.30% | 3.55% | 2.75% |
Benefit Plans (Fair Value of Pl
Benefit Plans (Fair Value of Plan Assets Measured on a Recurring Basis) (Details) - Pension Benefits - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 2,420 | $ 2,285 | $ 2,025 |
Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,420 | 2,285 | |
Total | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,664 | 1,472 | |
Level 1 | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 699 | 526 | |
Level 2 | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 956 | 936 | |
Level 3 | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 9 | 10 | |
Fair Value Measured at Net Asset Value Per Share | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 756 | 813 | |
Total fixed maturity securities trading | Total | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 782 | 802 | |
Total fixed maturity securities trading | Level 1 | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Total fixed maturity securities trading | Level 2 | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 773 | 792 | |
Total fixed maturity securities trading | Level 3 | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 9 | 10 | |
Corporate and other bonds | Total | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 652 | 597 | |
Corporate and other bonds | Level 1 | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Corporate and other bonds | Level 2 | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 643 | 587 | |
Corporate and other bonds | Level 3 | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 9 | 10 | |
States, municipalities and political subdivisions | Total | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 32 | 51 | |
States, municipalities and political subdivisions | Level 1 | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
States, municipalities and political subdivisions | Level 2 | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 32 | 51 | |
States, municipalities and political subdivisions | Level 3 | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Asset-backed | Total | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 98 | 154 | |
Asset-backed | Level 1 | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Asset-backed | Level 2 | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 98 | 154 | |
Asset-backed | Level 3 | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Equity securities | Total | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 803 | 586 | |
Equity securities | Level 1 | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 666 | 458 | |
Equity securities | Level 2 | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 137 | 128 | |
Equity securities | Level 3 | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Short term investments | Total | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 58 | 62 | |
Short term investments | Level 1 | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 20 | 55 | |
Short term investments | Level 2 | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 38 | 7 | |
Short term investments | Level 3 | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other assets | Total | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8 | 9 | |
Other assets | Level 1 | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other assets | Level 2 | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8 | 9 | |
Other assets | Level 3 | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Cash | Total | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 13 | 13 | |
Cash | Level 1 | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 13 | 13 | |
Cash | Level 2 | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Cash | Level 3 | Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 |
Benefit Plans (Estimated Future
Benefit Plans (Estimated Future Minimum Benefit Payments to Participants) (Details) $ in Millions | Dec. 31, 2020USD ($) |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2021 | $ 179 |
2022 | 180 |
2023 | 180 |
2024 | 177 |
2025 | 176 |
2026-2030 | 823 |
Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2021 | 1 |
2022 | 1 |
2023 | 1 |
2024 | 1 |
2025 | 0 |
2026-2030 | $ 2 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized (in shares) | 16,000,000 | ||
Number of shares available for grant (in shares) | 5,900,000 | ||
Measurement period of specific annual performance goals, in years | 1 year | 3 years | |
Cliff vesting period following date of grant | 2 years | ||
Allocated share-based compensation expense | $ 37 | $ 34 | $ 32 |
Tax benefit from compensation expense | 6 | 8 | 8 |
Compensation cost not yet recognized | $ 39 | ||
Compensation cost not yet recognized, period for recognition | 1 year 9 months 18 days | ||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, vested in period, fair value | $ 35 | $ 31 | $ 16 |
Weighted average grant date fair value of awards granted (in usd per share) | $ 34.36 | $ 43.86 | $ 51.64 |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 0.00% | ||
Award vesting period | 1 year | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 200.00% | ||
Award vesting period | 3 years |
Stock-Based Compensation (Restr
Stock-Based Compensation (Restricted shares, performance-based restricted share units and performance share unit activity) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Awards | |||
Balance as of January 1, 2020 (in shares) | 2,115,186 | ||
Awards granted (in shares) | 1,316,407 | ||
Awards vested (in shares) | (806,589) | ||
Awards forfeited, canceled or expired (in shares) | (248,760) | ||
Performance-based adjustment (in shares) | 62,897 | ||
Balance as of December 31, 2020 (in shares) | 2,439,141 | 2,115,186 | |
Weighted Average Grant Date Fair Value | |||
Balance as of January 1, 2020 (in dollars per share) | $ 46.25 | ||
Awards granted (in dollars per share) | 34.36 | $ 43.86 | $ 51.64 |
Awards vested (in dollars per share) | 44.31 | ||
Awards forfeited, canceled or expired (in dollars per share) | 42.57 | ||
Performance-based adjustment (in dollars per share) | 34.45 | ||
Balance as of December 31, 2020 (in dollars per share) | $ 40.56 | $ 46.25 |
Other Intangible Assets (Summar
Other Intangible Assets (Summary of Other Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Other Intangible Assets [Abstract] | ||
Finite-lived intangible assets: | $ 18 | $ 18 |
Indefinite-lived intangible assets: | 64 | 62 |
Total other intangible assets | 82 | 80 |
Accumulated Amortization | 13 | 11 |
Syndicate capacity | ||
Schedule of Other Intangible Assets [Abstract] | ||
Indefinite-lived intangible assets: | 48 | 46 |
Agency force | ||
Schedule of Other Intangible Assets [Abstract] | ||
Indefinite-lived intangible assets: | $ 16 | 16 |
Trade name | ||
Schedule of Other Intangible Assets [Abstract] | ||
Economic Useful Life | 8 years | |
Finite-lived intangible assets: | $ 7 | 7 |
Accumulated Amortization | $ 7 | 6 |
Distribution channel | ||
Schedule of Other Intangible Assets [Abstract] | ||
Economic Useful Life | 15 years | |
Finite-lived intangible assets: | $ 11 | 11 |
Accumulated Amortization | $ 6 | $ 5 |
Schedule of Other Intangible As
Schedule of Other Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
2021 | $ 1 | ||
2022 | 1 | ||
2023 | 1 | ||
2024 | 1 | ||
2025 | 1 | ||
Other Intangible Assets | International | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense included in other operating expenses | $ 1 | $ 1 | $ 1 |
Leases (Narrative) (Detail)
Leases (Narrative) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | |||
Lease expense | $ 57 | $ 55 | |
Operating lease, cost | 38 | 37 | |
Variable lease, cost | 19 | 18 | |
Capital lease obligations | $ 62 | ||
Operating lease, payments | 41 | 34 | |
Right-of-use asset obtained in exchange for operating lease liability | $ 6 | $ 12 |
Leases (Assets and Liabilities)
Leases (Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating lease ROU assets | $ 199 | $ 220 |
Operating lease liabilities | $ 279 | $ 301 |
Leases (Maturities) (Details)
Leases (Maturities) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2021 | $ 44 | |
2022 | 41 | |
2023 | 36 | |
2024 | 29 | |
2025 | 24 | |
Thereafter | 163 | |
Total lease payments | 337 | |
Less: Discount | (58) | |
Total operating lease liabilities | $ 279 | $ 301 |
Leases (Lease Term and Discount
Leases (Lease Term and Discount Rate) (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Weighted average remaining lease term | 10 years 3 months 18 days | 10 years 9 months 18 days |
Weighted average discount rate | 3.40% | 3.40% |
Stockholders' Equity and Stat_3
Stockholders' Equity and Statutory Accounting Practices (Narrative) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Stockholders' Equity and Statutory Accounting Practices [Abstract] | ||
Increase in statutory capital and surplus due to prescribed practice | $ 91 | $ 91 |
Statutory amount available for dividend payment before consideration of statutory dividends paid in the preceding twelve months | 1,070 | |
Dividends paid in the preceding twelve months | $ 975 | |
Capital required for capital adequacy to risk weighted assets | 2.66 | 2.91 |
Stockholders' Equity and Stat_4
Stockholders' Equity and Statutory Accounting Practices Combined statutory capital and surplus and net income (loss) (Details) - Combined Continental Casualty Companies - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statutory Accounting Practices [Line Items] | |||
Statutory Capital and Surplus | $ 10,708 | $ 10,787 | |
Statutory Net Income (Loss) | $ 800 | $ 1,062 | $ 1,405 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) by Component Schedule of Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Total stockholder's equity at beginning of period | $ 12,215 | $ 11,217 |
Other comprehensive income (loss) before reclassifications | 714 | 894 |
Amounts reclassified from accumulated other comprehensive income (loss) net of tax | (38) | (35) |
Other comprehensive income (loss) after tax (expense) benefit | 752 | 929 |
Total stockholder's equity at end of period | 12,707 | 12,215 |
Reclassification from AOCI, tax | 10 | 10 |
Tax (expense) benefit on other comprehensive income (loss) | (185) | (240) |
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 | 803 | 51 |
Net unrealized gains (losses) on investments with an allowance for credit losses | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Total stockholder's equity at beginning of period | 15 | 16 |
Other comprehensive income (loss) before reclassifications | (13) | |
Amounts reclassified from accumulated other comprehensive income (loss) net of tax | (12) | |
Other comprehensive income (loss) after tax (expense) benefit | (1) | |
Total stockholder's equity at end of period | 15 | |
Reclassification from AOCI, tax | 3 | |
Tax (expense) benefit on other comprehensive income (loss) | 0 | |
Net unrealized gains (losses) on other investments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Total stockholder's equity at beginning of period | 1,010 | 61 |
Other comprehensive income (loss) before reclassifications | 957 | |
Amounts reclassified from accumulated other comprehensive income (loss) net of tax | 8 | |
Other comprehensive income (loss) after tax (expense) benefit | 949 | |
Total stockholder's equity at end of period | 1,010 | |
Reclassification from AOCI, tax | (1) | |
Tax (expense) benefit on other comprehensive income (loss) | (255) | |
Net unrealized gains (losses) on other investments | Net unrealized gains (losses) on investments with an allowance for credit losses | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Total stockholder's equity at beginning of period | 0 | |
Other comprehensive income (loss) before reclassifications | (43) | |
Amounts reclassified from accumulated other comprehensive income (loss) net of tax | (43) | |
Other comprehensive income (loss) after tax (expense) benefit | 0 | |
Total stockholder's equity at end of period | 0 | 0 |
Reclassification from AOCI, tax | 12 | |
Tax (expense) benefit on other comprehensive income (loss) | 0 | |
Net unrealized gains (losses) on other investments | Net unrealized gains (losses) on other investments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Total stockholder's equity at beginning of period | 1,025 | |
Other comprehensive income (loss) before reclassifications | 763 | |
Amounts reclassified from accumulated other comprehensive income (loss) net of tax | 43 | |
Other comprehensive income (loss) after tax (expense) benefit | 720 | |
Total stockholder's equity at end of period | 1,745 | 1,025 |
Reclassification from AOCI, tax | (12) | |
Tax (expense) benefit on other comprehensive income (loss) | (189) | |
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 | (53) | (89) |
Amounts reclassified from accumulated other comprehensive income (loss) net of tax | (38) | (31) |
Other comprehensive income (loss) after tax (expense) benefit | (15) | (58) |
Total stockholder's equity at end of period | (848) | (833) |
Reclassification from AOCI, tax | 10 | 8 |
Tax (expense) benefit on other comprehensive income (loss) | 4 | 15 |
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 | 47 | 39 |
Amounts reclassified from accumulated other comprehensive income (loss) net of tax | 0 | 0 |
Other comprehensive income (loss) after tax (expense) benefit | 47 | 39 |
Total stockholder's equity at end of period | (94) | (141) |
Reclassification from AOCI, tax | 0 | 0 |
Tax (expense) benefit on other comprehensive income (loss) | $ 0 | $ 0 |
Business Segments (Narrative) (
Business Segments (Narrative) (Details) - segment | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Percentage of direct foreign written premiums | 9.00% | 9.00% | 9.00% |
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 | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | ||||
Net written premiums | $ 8,059 | $ 7,656 | $ 7,345 | |
Operating revenues | ||||
Net earned premiums | 7,649 | 7,428 | 7,312 | |
Net investment income | 1,935 | 2,118 | 1,817 | |
Non-insurance warranty revenue | 1,252 | 1,161 | 1,007 | |
Other revenues | 26 | 31 | 50 | |
Total operating revenues | 10,862 | 10,738 | 10,186 | |
Claims, Benefits and Expenses | ||||
Net incurred claims and benefits | 6,149 | 5,783 | 5,547 | |
Policyholders’ dividends | 21 | 23 | 25 | |
Amortization of deferred acquisition costs | 1,410 | 1,383 | 1,335 | |
Non-insurance warranty expense | 1,159 | 1,082 | 923 | |
Other insurance related expenses | 1,028 | 1,038 | 1,039 | |
Other expenses | 220 | 235 | 301 | |
Total claims, benefits and expenses | 9,987 | 9,544 | 9,170 | |
Core income (loss) before income tax | 875 | 1,194 | 1,016 | |
Income tax (expense) benefit on core income (loss) | (140) | (215) | (171) | |
Core income (loss) | 735 | 979 | 845 | |
Net investment gains (losses) | (54) | 29 | (52) | |
Income tax (expense) benefit on net investment gains (losses) | 9 | (8) | 14 | |
Net investment gains (losses), after tax | $ (216) | (45) | 21 | (38) |
Net deferred tax asset remeasurement | 6 | |||
Net income (loss) | 690 | 1,000 | 813 | |
Operating Segments | Specialty | ||||
Segment Reporting Information [Line Items] | ||||
Net written premiums | 3,040 | 2,848 | 2,744 | |
Operating revenues | ||||
Net earned premiums | 2,883 | 2,773 | 2,732 | |
Net investment income | 449 | 556 | 439 | |
Non-insurance warranty revenue | 1,252 | 1,161 | 1,007 | |
Other revenues | 1 | 1 | 2 | |
Total operating revenues | 4,585 | 4,491 | 4,180 | |
Claims, Benefits and Expenses | ||||
Net incurred claims and benefits | 1,792 | 1,595 | 1,526 | |
Policyholders’ dividends | 3 | 5 | 5 | |
Amortization of deferred acquisition costs | 621 | 610 | 599 | |
Non-insurance warranty expense | 1,159 | 1,082 | 923 | |
Other insurance related expenses | 280 | 292 | 279 | |
Other expenses | 50 | 48 | 46 | |
Total claims, benefits and expenses | 3,905 | 3,632 | 3,378 | |
Core income (loss) before income tax | 680 | 859 | 802 | |
Income tax (expense) benefit on core income (loss) | (145) | (188) | (173) | |
Core income (loss) | 535 | 671 | 629 | |
Operating Segments | Commercial | ||||
Segment Reporting Information [Line Items] | ||||
Net written premiums | 3,565 | 3,315 | 3,060 | |
Operating revenues | ||||
Net earned premiums | 3,323 | 3,162 | 3,050 | |
Net investment income | 565 | 654 | 500 | |
Non-insurance warranty revenue | 0 | 0 | 0 | |
Other revenues | 25 | 29 | 28 | |
Total operating revenues | 3,913 | 3,845 | 3,578 | |
Claims, Benefits and Expenses | ||||
Net incurred claims and benefits | 2,436 | 2,130 | 2,053 | |
Policyholders’ dividends | 18 | 18 | 20 | |
Amortization of deferred acquisition costs | 592 | 537 | 505 | |
Non-insurance warranty expense | 0 | 0 | 0 | |
Other insurance related expenses | 505 | 505 | 505 | |
Other expenses | 34 | 32 | 43 | |
Total claims, benefits and expenses | 3,585 | 3,222 | 3,126 | |
Core income (loss) before income tax | 328 | 623 | 452 | |
Income tax (expense) benefit on core income (loss) | (67) | (134) | (95) | |
Core income (loss) | 261 | 489 | 357 | |
Operating Segments | International | ||||
Segment Reporting Information [Line Items] | ||||
Net written premiums | 961 | 971 | 1,018 | |
Operating revenues | ||||
Net earned premiums | 940 | 974 | 1,001 | |
Net investment income | 58 | 63 | 57 | |
Non-insurance warranty revenue | 0 | 0 | 0 | |
Other revenues | 0 | 0 | 1 | |
Total operating revenues | 998 | 1,037 | 1,059 | |
Claims, Benefits and Expenses | ||||
Net incurred claims and benefits | 629 | 624 | 699 | |
Policyholders’ dividends | 0 | 0 | 0 | |
Amortization of deferred acquisition costs | 197 | 236 | 231 | |
Non-insurance warranty expense | 0 | 0 | 0 | |
Other insurance related expenses | 136 | 130 | 135 | |
Other expenses | (7) | 8 | 14 | |
Total claims, benefits and expenses | 955 | 998 | 1,079 | |
Core income (loss) before income tax | 43 | 39 | (20) | |
Income tax (expense) benefit on core income (loss) | (5) | (9) | 1 | |
Core income (loss) | 38 | 30 | (19) | |
Operating Segments | Life & Group | ||||
Segment Reporting Information [Line Items] | ||||
Net written premiums | 494 | 523 | 524 | |
Operating revenues | ||||
Net earned premiums | 504 | 520 | 530 | |
Net investment income | 851 | 820 | 801 | |
Non-insurance warranty revenue | 0 | 0 | 0 | |
Other revenues | 0 | 0 | 2 | |
Total operating revenues | 1,355 | 1,340 | 1,333 | |
Claims, Benefits and Expenses | ||||
Net incurred claims and benefits | 1,286 | 1,416 | 1,218 | |
Policyholders’ dividends | 0 | 0 | 0 | |
Amortization of deferred acquisition costs | 0 | 0 | 0 | |
Non-insurance warranty expense | 0 | 0 | 0 | |
Other insurance related expenses | 109 | 115 | 122 | |
Other expenses | 7 | 8 | 7 | |
Total claims, benefits and expenses | 1,402 | 1,539 | 1,347 | |
Core income (loss) before income tax | (47) | (199) | (14) | |
Income tax (expense) benefit on core income (loss) | 56 | 90 | 57 | |
Core income (loss) | 9 | (109) | 43 | |
Operating Segments | Corporate & Other | ||||
Segment Reporting Information [Line Items] | ||||
Net written premiums | 0 | 1 | 0 | |
Operating revenues | ||||
Net earned premiums | 0 | 1 | 0 | |
Net investment income | 12 | 25 | 20 | |
Non-insurance warranty revenue | 0 | 0 | 0 | |
Other revenues | 5 | 6 | 19 | |
Total operating revenues | 17 | 32 | 39 | |
Claims, Benefits and Expenses | ||||
Net incurred claims and benefits | 6 | 18 | 51 | |
Policyholders’ dividends | 0 | 0 | 0 | |
Amortization of deferred acquisition costs | 0 | 0 | 0 | |
Non-insurance warranty expense | 0 | 0 | 0 | |
Other insurance related expenses | (1) | (2) | (1) | |
Other expenses | 141 | 144 | 193 | |
Total claims, benefits and expenses | 146 | 160 | 243 | |
Core income (loss) before income tax | (129) | (128) | (204) | |
Income tax (expense) benefit on core income (loss) | 21 | 26 | 39 | |
Core income (loss) | (108) | (102) | (165) | |
Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Net written premiums | (1) | (2) | (1) | |
Operating revenues | ||||
Net earned premiums | (1) | (2) | (1) | |
Net investment income | 0 | 0 | 0 | |
Non-insurance warranty revenue | 0 | 0 | 0 | |
Other revenues | (5) | (5) | (2) | |
Total operating revenues | (6) | (7) | (3) | |
Claims, Benefits and Expenses | ||||
Net incurred claims and benefits | 0 | 0 | 0 | |
Policyholders’ dividends | 0 | 0 | 0 | |
Amortization of deferred acquisition costs | 0 | 0 | 0 | |
Non-insurance warranty expense | 0 | 0 | 0 | |
Other insurance related expenses | (1) | (2) | (1) | |
Other expenses | (5) | (5) | (2) | |
Total claims, benefits and expenses | (6) | (7) | (3) | |
Core income (loss) before income tax | 0 | 0 | 0 | |
Income tax (expense) benefit on core income (loss) | 0 | 0 | 0 | |
Core income (loss) | $ 0 | $ 0 | $ 0 |
Business Segments (Balance Shee
Business Segments (Balance Sheet Information) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Reinsurance receivables | $ 4,478 | $ 4,204 |
Insurance receivables | 2,640 | 2,481 |
Deferred acquisition costs | 708 | 662 |
Goodwill | 148 | 147 |
Deferred non-insurance warranty acquisition expense | 3,068 | 2,840 |
Insurance reserves | ||
Claim and claim adjustment expenses | 22,706 | 21,720 |
Unearned premiums | 5,119 | 4,583 |
Future policy benefits | 13,318 | 12,311 |
Deferred non-insurance warranty revenue | 4,023 | 3,779 |
Operating Segments | Specialty | ||
Segment Reporting Information [Line Items] | ||
Reinsurance receivables | 886 | 575 |
Insurance receivables | 1,052 | 971 |
Deferred acquisition costs | 330 | 311 |
Goodwill | 117 | 117 |
Deferred non-insurance warranty acquisition expense | 3,068 | 2,840 |
Insurance reserves | ||
Claim and claim adjustment expenses | 5,748 | 5,238 |
Unearned premiums | 2,635 | 2,337 |
Future policy benefits | 0 | 0 |
Deferred non-insurance warranty revenue | 4,023 | 3,779 |
Operating Segments | Commercial | ||
Segment Reporting Information [Line Items] | ||
Reinsurance receivables | 922 | 855 |
Insurance receivables | 1,254 | 1,210 |
Deferred acquisition costs | 281 | 257 |
Goodwill | 0 | 0 |
Deferred non-insurance warranty acquisition expense | 0 | 0 |
Insurance reserves | ||
Claim and claim adjustment expenses | 9,041 | 8,656 |
Unearned premiums | 1,824 | 1,626 |
Future policy benefits | 0 | 0 |
Deferred non-insurance warranty revenue | 0 | 0 |
Operating Segments | International | ||
Segment Reporting Information [Line Items] | ||
Reinsurance receivables | 302 | 247 |
Insurance receivables | 328 | 284 |
Deferred acquisition costs | 97 | 94 |
Goodwill | 31 | 30 |
Deferred non-insurance warranty acquisition expense | 0 | 0 |
Insurance reserves | ||
Claim and claim adjustment expenses | 2,091 | 1,876 |
Unearned premiums | 546 | 495 |
Future policy benefits | 0 | 0 |
Deferred non-insurance warranty revenue | 0 | 0 |
Operating Segments | Life & Group | ||
Segment Reporting Information [Line Items] | ||
Reinsurance receivables | 390 | 385 |
Insurance receivables | 4 | 16 |
Deferred acquisition costs | 0 | 0 |
Goodwill | 0 | 0 |
Deferred non-insurance warranty acquisition expense | 0 | 0 |
Insurance reserves | ||
Claim and claim adjustment expenses | 3,743 | 3,716 |
Unearned premiums | 114 | 125 |
Future policy benefits | 13,318 | 12,311 |
Deferred non-insurance warranty revenue | 0 | 0 |
Operating Segments | Corporate & Other | ||
Segment Reporting Information [Line Items] | ||
Reinsurance receivables | 1,978 | 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 | 2,083 | 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 | 0 | 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 | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Total revenues | $ 2,931 | $ 2,820 | $ 2,766 | $ 2,291 | $ 2,777 | $ 2,685 | $ 2,610 | $ 2,695 | $ 10,808 | $ 10,767 | $ 10,134 |
Total operating revenues | 10,862 | 10,738 | 10,186 | ||||||||
Net investment gains (losses) | (54) | 29 | (52) | ||||||||
Operating Segments | Specialty | |||||||||||
Total revenues | 4,585 | 4,491 | 4,180 | ||||||||
Operating Segments | Commercial | |||||||||||
Total revenues | 3,913 | 3,845 | 3,578 | ||||||||
Operating Segments | International | |||||||||||
Total revenues | 998 | 1,037 | 1,059 | ||||||||
Operating Segments | Life & Group | |||||||||||
Total revenues | 1,355 | 1,340 | 1,333 | ||||||||
Operating Segments | Corporate & Other | |||||||||||
Total revenues | 17 | 32 | 39 | ||||||||
Eliminations | |||||||||||
Total revenues | (6) | (7) | (3) | ||||||||
Management & Professional Liability | Operating Segments | Specialty | |||||||||||
Total revenues | 2,577 | 2,572 | 2,440 | ||||||||
Surety | Operating Segments | Specialty | |||||||||||
Total revenues | 596 | 596 | 571 | ||||||||
Warranty & Alternative Risks | Operating Segments | Specialty | |||||||||||
Total revenues | 1,412 | 1,323 | 1,169 | ||||||||
Middle Market | Operating Segments | Commercial | |||||||||||
Total revenues | 1,447 | 1,439 | 1,306 | ||||||||
Construction | Operating Segments | Commercial | |||||||||||
Total revenues | 1,120 | 1,043 | 955 | ||||||||
Small Business | Operating Segments | Commercial | |||||||||||
Total revenues | 482 | 504 | 501 | ||||||||
Other Commercial | Operating Segments | Commercial | |||||||||||
Total revenues | 864 | 859 | 816 | ||||||||
Canada | Operating Segments | International | |||||||||||
Total revenues | 291 | 277 | 255 | ||||||||
Europe | Operating Segments | International | |||||||||||
Total revenues | 389 | 363 | 363 | ||||||||
Hardy | Operating Segments | International | |||||||||||
Total revenues | $ 318 | $ 397 | $ 441 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Liability for Catastrophe Claims [Line Items] | |||||||||||
Revenues | $ 2,931 | $ 2,820 | $ 2,766 | $ 2,291 | $ 2,777 | $ 2,685 | $ 2,610 | $ 2,695 | $ 10,808 | $ 10,767 | $ 10,134 |
Net income (loss) | $ 387 | $ 213 | $ 151 | $ (61) | $ 273 | $ 107 | $ 278 | $ 342 | $ 690 | $ 1,000 | $ 813 |
Basic earnings (loss) per share (in usd per share) | $ 1.42 | $ 0.79 | $ 0.56 | $ (0.23) | $ 1 | $ 0.39 | $ 1.03 | $ 1.26 | $ 2.54 | $ 3.68 | $ 2.99 |
Diluted earnings (loss) per share (in usd per share) | $ 1.42 | $ 0.79 | $ 0.55 | $ (0.23) | $ 1 | $ 0.39 | $ 1.02 | $ 1.25 | $ 2.53 | $ 3.67 | $ 2.98 |
Net realized investment gains (losses) | $ 216 | $ 45 | $ (21) | $ 38 | |||||||
Loss from catastrophes | $ 160 | $ 301 | |||||||||
Charge related to recognition of active life reserve premium deficiency | $ 74 | $ 216 | |||||||||
COVID-19 | |||||||||||
Liability for Catastrophe Claims [Line Items] | |||||||||||
Loss from catastrophes | $ 182 | ||||||||||
Limited Partnership and Common Stock Investments [Member] | |||||||||||
Liability for Catastrophe Claims [Line Items] | |||||||||||
Loss on limited partnership and common stock investments | $ 125 |
Related Party Transactions Narr
Related Party Transactions Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Due to related parties | $ 89 | $ 21 | |
Due from related parties | 0 | 21 | |
Fees and expenses of investment facilities and services | |||
Amounts reimbursed to Loews for services provided to the Company | 47 | 44 | $ 43 |
Due to related parties | 22 | 21 | |
Corporate services and related travel expenses | |||
Amounts reimbursed to Loews for services provided to the Company | 1 | 1 | |
Taxes paid | |||
Due to related parties | 21 | ||
Due from related parties | 67 | ||
Loews | |||
Amounts earned from Loews for insurance premiums | $ 2 | $ 2 | $ 2 |
Non-Insurance Revenues from C_2
Non-Insurance Revenues from Contracts with Customers (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Deferred non-insurance warranty revenue | $ 4,023 | $ 3,779 |
Contract with customer, liability, revenue recognized | 1,100 | 971 |
Deferred non-insurance warranty acquisition expense | 3,068 | 2,840 |
Amortization of deferred sales commissions | 897 | 813 |
Capitalized Commission Costs | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Deferred non-insurance warranty acquisition expense | 3,100 | 2,800 |
Capitalized Administrator Service Costs | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Deferred non-insurance warranty acquisition expense | $ 37 | $ 31 |
Non-Insurance Revenues from C_3
Non-Insurance Revenues from Contracts with Customers (Performance Obligation) (Details) $ in Billions | Dec. 31, 2020USD ($) |
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, expected timing of satisfaction, period | 12 months |
Remaining performance obligation, amount | $ 1.2 |
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, expected timing of satisfaction, period | 1 year |
Remaining performance obligation, amount | $ 0.9 |
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, expected timing of satisfaction, period | 1 year |
Remaining performance obligation, amount | $ 0.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Remaining performance obligation, expected timing of satisfaction, period | |
Remaining performance obligation, amount | $ 1.2 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2021 | Feb. 05, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Subsequent Event [Line Items] | ||||
Funds held under reinsurance agreements, liability | $ 3,300,000,000 | $ 3,200,000,000 | ||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Funds held under reinsurance agreements, liability | $ 690,000,000 | |||
Retroactive resinurance agreement, maximum | $ 1,000,000,000 | |||
Subsequent Event | Forecast | ||||
Subsequent Event [Line Items] | ||||
Reinsurance, loss on uncollectible accounts in period, amount | $ 12,000,000 |
Schedule II. Condensed Financ_2
Schedule II. Condensed Financial Information of Registrant (Parent Company) (Schedule of Condensed Financial Information of Registrant, Statements of Operations and Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues | |||||||||||
Net investment income | $ 1,935 | $ 2,118 | $ 1,817 | ||||||||
Net investment (losses) gains | (54) | 29 | (52) | ||||||||
Total revenues | $ 2,931 | $ 2,820 | $ 2,766 | $ 2,291 | $ 2,777 | $ 2,685 | $ 2,610 | $ 2,695 | 10,808 | 10,767 | 10,134 |
Expenses | |||||||||||
Interest | 122 | 131 | 138 | ||||||||
Income tax benefit | (131) | (223) | (151) | ||||||||
Net income | $ 387 | $ 213 | $ 151 | $ (61) | $ 273 | $ 107 | $ 278 | $ 342 | 690 | 1,000 | 813 |
Total comprehensive income (loss) | 1,442 | 1,929 | (81) | ||||||||
Parent Company | |||||||||||
Revenues | |||||||||||
Net investment income | 3 | 13 | 10 | ||||||||
Net investment (losses) gains | (20) | (21) | 0 | ||||||||
Total revenues | (17) | (8) | 10 | ||||||||
Expenses | |||||||||||
Administrative and general | 1 | 1 | 1 | ||||||||
Interest | 122 | 131 | 135 | ||||||||
Total expenses | 123 | 132 | 136 | ||||||||
Loss from operations before income taxes and equity in net income of subsidiaries | (140) | (140) | (126) | ||||||||
Income tax benefit | 18 | 21 | 9 | ||||||||
Loss before equity in net income of subsidiaries | (122) | (119) | (117) | ||||||||
Equity in net income of subsidiaries | 812 | 1,119 | 930 | ||||||||
Net income | 690 | 1,000 | 813 | ||||||||
Equity in other comprehensive income (loss) of subsidiaries | 752 | 929 | (894) | ||||||||
Total comprehensive income (loss) | $ 1,442 | $ 1,929 | $ (81) |
Schedule II. Condensed Financ_3
Schedule II. Condensed Financial Information of Registrant (Parent Company) (Schedule of Condensed Financial Information of Registrant, Balance Sheets) (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||||
Cash | $ 419 | $ 242 | ||
Other assets | 1,628 | 1,473 | ||
Total assets | 64,026 | 60,612 | ||
Liabilities | ||||
Long term debt | 2,776 | 2,679 | ||
Other liabilities | 3,377 | 3,325 | ||
Total liabilities | 51,319 | 48,397 | ||
Stockholders' Equity | ||||
Common stock ($2.50 par value; 500,000,000 shares authorized; 273,040,243 shares issued; 271,391,603 and 271,412,591 shares outstanding) | 683 | 683 | ||
Additional paid-in capital | 2,211 | 2,203 | ||
Retained earnings | 9,081 | 9,348 | ||
Accumulated other comprehensive income | 803 | 51 | ||
Treasury stock (1,648,640 and 1,627,652 shares), at cost | (71) | (70) | ||
Total stockholders’ equity | 12,707 | 12,215 | $ 11,217 | |
Total liabilities and stockholders' equity | $ 64,026 | $ 60,612 | ||
Balance Sheet Parenthetical | ||||
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) | 271,391,603 | 271,412,591 | ||
Treasury stock, shares (in shares) | 1,648,640 | 1,627,652 | ||
Parent Company | ||||
Assets | ||||
Investment in subsidiaries | $ 14,996 | $ 14,412 | ||
Cash | 0 | 1 | $ 1 | $ 1 |
Short term investments | 522 | 521 | ||
Amounts due from affiliates | 4 | 2 | ||
Other assets | 1 | 1 | ||
Total assets | 15,523 | 14,937 | ||
Liabilities | ||||
Long term debt | 2,776 | 2,679 | ||
Other liabilities | 40 | 43 | ||
Total liabilities | 2,816 | 2,722 | ||
Stockholders' Equity | ||||
Common stock ($2.50 par value; 500,000,000 shares authorized; 273,040,243 shares issued; 271,391,603 and 271,412,591 shares outstanding) | 683 | 683 | ||
Additional paid-in capital | 2,211 | 2,203 | ||
Retained earnings | 9,081 | 9,348 | ||
Accumulated other comprehensive income | 803 | 51 | ||
Treasury stock (1,648,640 and 1,627,652 shares), at cost | (71) | (70) | ||
Total stockholders’ equity | 12,707 | 12,215 | ||
Total liabilities and stockholders' equity | $ 15,523 | $ 14,937 |
Schedule II. Condensed Financ_4
Schedule II. Condensed Financial Information of Registrant (Parent Company) (Schedule of Condensed Financial Information of Registrant, Statements of Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flows from Operating Activities | |||||||||||
Net income | $ 387 | $ 213 | $ 151 | $ (61) | $ 273 | $ 107 | $ 278 | $ 342 | $ 690 | $ 1,000 | $ 813 |
Adjustments to reconcile net income to net cash flows provided by operating activities: | |||||||||||
Net investment losses | 54 | (29) | 52 | ||||||||
Other, net | (145) | (225) | (223) | ||||||||
Net cash flows provided by operating activities | 1,775 | 1,140 | 1,227 | ||||||||
Cash Flows from Investing Activities | |||||||||||
Change in short term investments | (39) | (535) | 168 | ||||||||
Other, net | 16 | 15 | 18 | ||||||||
Net cash flows used by investing activities | (705) | (225) | (177) | ||||||||
Cash Flows from Financing Activities | |||||||||||
Dividends paid to common stockholders | (950) | (929) | (896) | ||||||||
Proceeds from the issuance of debt | 495 | 496 | 0 | ||||||||
Repayment of debt | (419) | (520) | (180) | ||||||||
Purchase of treasury stock | (18) | (23) | 0 | ||||||||
Other, net | (10) | (12) | (9) | ||||||||
Net cash flows used by financing activities | (902) | (988) | (1,085) | ||||||||
Cash, beginning of year | 242 | 242 | |||||||||
Cash, end of year | 419 | 242 | 419 | 242 | |||||||
Parent Company | |||||||||||
Cash Flows from Operating Activities | |||||||||||
Net income | 690 | 1,000 | 813 | ||||||||
Adjustments to reconcile net income to net cash flows provided by operating activities: | |||||||||||
Equity in net income of subsidiaries | (812) | (1,119) | (930) | ||||||||
Dividends received from subsidiaries | 975 | 1,065 | 1,026 | ||||||||
Net investment losses | 20 | 21 | 0 | ||||||||
Other, net | 26 | 13 | 16 | ||||||||
Net cash flows provided by operating activities | 899 | 980 | 925 | ||||||||
Cash Flows from Investing Activities | |||||||||||
Change in short term investments | 2 | 10 | 130 | ||||||||
Capital contributions to subsidiaries | (1) | (2) | (2) | ||||||||
Other, net | 0 | 0 | 0 | ||||||||
Net cash flows used by investing activities | 1 | 8 | 128 | ||||||||
Cash Flows from Financing Activities | |||||||||||
Dividends paid to common stockholders | (950) | (929) | (896) | ||||||||
Proceeds from the issuance of debt | 495 | 496 | 0 | ||||||||
Repayment of debt | (419) | (520) | (150) | ||||||||
Purchase of treasury stock | (18) | (23) | 0 | ||||||||
Other, net | (9) | (12) | (7) | ||||||||
Net cash flows used by financing activities | (901) | (988) | (1,053) | ||||||||
Net change in cash | (1) | 0 | 0 | ||||||||
Cash, beginning of year | $ 1 | $ 1 | 1 | 1 | 1 | ||||||
Cash, end of year | $ 0 | $ 1 | $ 0 | $ 1 | $ 1 |
Schedule II. Condensed Financ_5
Schedule II. Condensed Financial Information of Registrant (Parent Company) (Narrative) (Details) | Dec. 31, 2020 |
CNAF Consolidated | Loews | |
Condensed Financial Statements, Captions [Line Items] | |
Noncontrolling interest, ownership percentage by parent | 89.60% |
Schedule V. Valuation and Qua_2
Schedule V. Valuation and Qualifying Accounts (Schedule of valuation and qualifying accounts) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Mortgage loan receivables | |||
Movement in valuation allowances and reserves [Roll Forward] | |||
Balance Beginning of Period | $ 7 | ||
Charged to Costs and Expenses | 0 | ||
Charged to Other Accounts | 19 | ||
Deductions | 0 | ||
Balance at End of Period | 26 | $ 7 | |
Insurance and reinsurance receivables | |||
Movement in valuation allowances and reserves [Roll Forward] | |||
Balance Beginning of Period | 57 | 71 | $ 73 |
Charged to Costs and Expenses | 4 | (6) | 4 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | (7) | (8) | (6) |
Balance at End of Period | 54 | 57 | $ 71 |
Fixed maturity securities | |||
Movement in valuation allowances and reserves [Roll Forward] | |||
Balance Beginning of Period | 6 | ||
Charged to Costs and Expenses | 0 | ||
Charged to Other Accounts | 92 | ||
Deductions | (58) | ||
Balance at End of Period | $ 40 | $ 6 |
Schedule VI. Supplemental Inf_2
Schedule VI. Supplemental Information Concerning Property and Casualty Insurance Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Incurred claim and claim adjustment expenses related to current year | $ 5,793 | $ 5,356 | $ 5,358 |
Incurred claim and claim adjustment expenses related to prior years | (119) | (127) | (179) |
Consolidated Property and Casualty Insurance Entity | |||
Deferred acquisition costs | 708 | 662 | |
Reserves for unpaid claim and claim adjustment expenses | 22,706 | 21,720 | |
Discount deducted from claim and claim adjustment expense reserves above (based on interest rates ranging from 3.5% to 6.5%) | 1,209 | 1,321 | |
Unearned premiums | 5,119 | 4,583 | |
Net written premiums | 8,059 | 7,656 | 7,345 |
Net earned premiums | 7,649 | 7,428 | 7,312 |
Net investment income | 1,896 | 2,063 | 1,751 |
Incurred claim and claim adjustment expenses related to current year | 5,356 | 5,358 | |
Incurred claim and claim adjustment expenses related to prior years | (127) | (179) | |
Amortization of deferred acquisition costs | 1,410 | 1,383 | 1,335 |
Paid claim and claim adjustment expenses | $ 5,164 | $ 5,576 | $ 5,331 |
Consolidated Property and Casualty Insurance Entity | Minimum | |||
Supplemental Information Parenthetical | |||
SEC Schedule, 12-18, supplemental information, property-casualty insurance underwriters, interest rate at which discount computed | 3.50% | 3.50% | |
Consolidated Property and Casualty Insurance Entity | Maximum | |||
Supplemental Information Parenthetical | |||
SEC Schedule, 12-18, supplemental information, property-casualty insurance underwriters, interest rate at which discount computed | 6.50% |