Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 21, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | L | |
Entity Registrant Name | LOEWS CORP | |
Entity Central Index Key | 60,086 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 336,601,242 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Assets: | ||
Fixed maturities, amortized cost of $38,982 and $38,947 | $ 42,065 | $ 41,494 |
Equity securities, cost of $603 and $571 | 607 | 549 |
Limited partnership investments | 3,254 | 3,220 |
Other invested assets, primarily mortgage loans | 748 | 683 |
Short term investments | 4,932 | 4,765 |
Total investments | 51,606 | 50,711 |
Cash | 357 | 327 |
Receivables | 7,977 | 7,644 |
Property, plant and equipment | 15,447 | 15,230 |
Goodwill | 647 | 346 |
Other assets | 2,420 | 1,736 |
Deferred acquisition costs of insurance subsidiaries | 647 | 600 |
Total assets | 79,101 | 76,594 |
Liabilities and Equity: | ||
Claim and claim adjustment expense | 22,179 | 22,343 |
Future policy benefits | 10,824 | 10,326 |
Unearned premiums | 4,107 | 3,762 |
Total insurance reserves | 37,110 | 36,431 |
Payable to brokers | 478 | 150 |
Short term debt | 192 | 110 |
Long term debt | 11,094 | 10,668 |
Deferred income taxes | 852 | 636 |
Other liabilities | 5,269 | 5,238 |
Total liabilities | 54,995 | 53,233 |
Commitments and contingent liabilities | ||
Preferred stock, $0.10 par value: Authorized - 100,000,000 shares | ||
Common stock, $0.01 par value: Authorized - 1,800,000,000 shares Issued - 336,724,742 and 336,621,358 shares | 3 | 3 |
Additional paid-in capital | 3,178 | 3,187 |
Retained earnings | 15,677 | 15,196 |
Accumulated other comprehensive loss | (36) | (223) |
Shareholders Equity Before Treasury Stock, Total | 18,822 | 18,163 |
Less treasury stock, at cost (123,500 shares) | (6) | |
Total shareholders' equity | 18,816 | 18,163 |
Noncontrolling interests | 5,290 | 5,198 |
Total equity | 24,106 | 23,361 |
Total liabilities and equity | $ 79,101 | $ 76,594 |
Consolidated Condensed Balance3
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, amortized cost | $ 38,982 | $ 38,947 |
Equity securities, cost | $ 603 | $ 571 |
Preferred stock, par value | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,800,000,000 | 1,800,000,000 |
Common stock, shares issued | 336,724,742 | 336,621,358 |
Treasury stock, shares | 123,500 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Income - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenues: | ||||
Insurance premiums | $ 1,734 | $ 1,730 | $ 3,379 | $ 3,429 |
Net investment income | 478 | 587 | 1,082 | 1,009 |
Investment gains (losses): | ||||
Other-than-temporary impairment losses | (2) | (15) | (4) | (38) |
Other net investment gains | 45 | 16 | 81 | 11 |
Total investment gains (losses) | 43 | 1 | 77 | (27) |
Contract drilling revenues | 392 | 357 | 756 | 801 |
Other revenues | 712 | 632 | 1,365 | 1,268 |
Total | 3,359 | 3,307 | 6,659 | 6,480 |
Expenses: | ||||
Insurance claims and policyholders' benefits | 1,280 | 1,339 | 2,573 | 2,747 |
Amortization of deferred acquisition costs | 312 | 305 | 617 | 612 |
Contract drilling expenses | 196 | 198 | 400 | 411 |
Other operating expenses | 1,085 | 1,611 | 1,931 | 2,518 |
Interest | 139 | 130 | 281 | 273 |
Total | 3,012 | 3,583 | 5,802 | 6,561 |
Income (loss) before income tax | 347 | (276) | 857 | (81) |
Income tax expense | (69) | (12) | (188) | (8) |
Net income (loss) | 278 | (288) | 669 | (89) |
Amounts attributable to noncontrolling interests | (47) | 223 | (143) | 126 |
Net income (loss) attributable to Loews Corporation | $ 231 | $ (65) | $ 526 | $ 37 |
Basic and diluted net income (loss) per share | $ 0.69 | $ (0.19) | $ 1.56 | $ 0.11 |
Dividends per share | $ 0.0625 | $ 0.0625 | $ 0.1250 | $ 0.1250 |
Weighted average shares outstanding: | ||||
Shares of common stock | 336,910 | 338,720 | 336,900 | 338,910 |
Dilutive potential shares of common stock | 810 | 800 | 190 | |
Total weighted average shares outstanding assuming dilution | 337,720 | 338,720 | 337,700 | 339,100 |
Consolidated Condensed Stateme5
Consolidated Condensed Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 278 | $ (288) | $ 669 | $ (89) |
Other comprehensive income (loss), after tax Changes in: | ||||
Net unrealized gains (losses) on investments with other-than-temporary impairments | (1) | (4) | 4 | |
Net other unrealized gains on investments | 77 | 321 | 144 | 549 |
Total unrealized gains on available-for-sale investments | 77 | 320 | 140 | 553 |
Unrealized gains on cash flow hedges | 1 | |||
Pension liability | 7 | 5 | 15 | 13 |
Foreign currency translation | 42 | (48) | 53 | (34) |
Other comprehensive income | 126 | 277 | 208 | 533 |
Comprehensive income (loss) | 404 | (11) | 877 | 444 |
Amounts attributable to noncontrolling interests | (60) | 191 | (164) | 69 |
Total comprehensive income attributable to Loews Corporation | $ 344 | $ 180 | $ 713 | $ 513 |
Consolidated Condensed Stateme6
Consolidated Condensed Statements of Equity - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Common Stock Held in Treasury [Member] | Noncontrolling Interests [Member] |
Beginning Balance at Dec. 31, 2015 | $ 22,810 | $ 3 | $ 3,184 | $ 14,731 | $ (357) | $ 5,249 | |
Net income (loss) | (89) | 37 | (126) | ||||
Other comprehensive income | 533 | 476 | 57 | ||||
Dividends paid | (136) | (42) | |||||
Dividends paid | (94) | ||||||
Purchases of subsidiary stock from noncontrolling interests | (9) | 3 | (12) | ||||
Purchases of Loews treasury stock | (98) | $ (98) | |||||
Stock-based compensation | 24 | 23 | 1 | ||||
Other | (4) | (13) | (2) | 11 | |||
Ending Balance at Jun. 30, 2016 | 23,031 | 3 | 3,197 | 14,724 | 119 | (98) | 5,086 |
Net income (loss) | (288) | ||||||
Other comprehensive income | 277 | ||||||
Ending Balance at Jun. 30, 2016 | 23,031 | 3 | 3,197 | 14,724 | 119 | (98) | 5,086 |
Beginning Balance at Dec. 31, 2016 | 23,361 | 3 | 3,187 | 15,196 | (223) | 5,198 | |
Net income (loss) | 669 | 526 | 143 | ||||
Other comprehensive income | 208 | 187 | 21 | ||||
Dividends paid | (138) | (42) | |||||
Dividends paid | (96) | ||||||
Purchases of Loews treasury stock | (6) | (6) | |||||
Stock-based compensation | 14 | (9) | 23 | ||||
Other | (2) | (3) | 1 | ||||
Ending Balance at Jun. 30, 2017 | 24,106 | 3 | 3,178 | 15,677 | (36) | (6) | 5,290 |
Net income (loss) | 278 | ||||||
Other comprehensive income | 126 | ||||||
Ending Balance at Jun. 30, 2017 | $ 24,106 | $ 3 | $ 3,178 | $ 15,677 | $ (36) | $ (6) | $ 5,290 |
Consolidated Condensed Stateme7
Consolidated Condensed Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Operating Activities: | ||
Net income (loss) | $ 669 | $ (89) |
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities, net | 614 | 1,389 |
Changes in operating assets and liabilities, net: | ||
Receivables | (223) | (429) |
Deferred acquisition costs | (41) | (25) |
Insurance reserves | 262 | 666 |
Other assets | (108) | (87) |
Other liabilities | (79) | (106) |
Trading securities | 137 | (548) |
Net cash flow operating activities | 1,231 | 771 |
Investing Activities: | ||
Purchases of fixed maturities | (4,840) | (4,874) |
Proceeds from sales of fixed maturities | 3,142 | 3,070 |
Proceeds from maturities of fixed maturities | 1,770 | 1,247 |
Purchases of limited partnership investments | (47) | (280) |
Proceeds from sales of limited partnership investments | 119 | 124 |
Purchases of property, plant and equipment | (476) | (895) |
Acquisitions | (1,222) | (79) |
Dispositions | 69 | 274 |
Change in short term investments | (29) | 148 |
Other, net | (40) | 148 |
Net cash flow investing activities | (1,554) | (1,117) |
Financing Activities: | ||
Dividends paid | (42) | (42) |
Dividends paid to noncontrolling interests | (96) | (94) |
Purchases of subsidiary stock from noncontrolling interests | (8) | |
Purchases of Loews treasury stock | (6) | (86) |
Principal payments on debt | (908) | (2,352) |
Issuance of debt | 1,401 | 2,843 |
Other, net | (1) | (1) |
Net cash flow financing activities | 348 | 260 |
Effect of foreign exchange rate on cash | 5 | (6) |
Net change in cash | 30 | (92) |
Cash, beginning of period | 327 | 440 |
Cash, end of period | $ 357 | $ 348 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 1. Basis of Presentation Loews Corporation is a holding company. Its subsidiaries are engaged in the following lines of business: commercial property and casualty insurance (CNA Financial Corporation (“CNA”), a 90% owned subsidiary); the operation of offshore oil and gas drilling rigs (Diamond Offshore Drilling, Inc. (“Diamond Offshore”), a 53% owned subsidiary); transportation and storage of natural gas and natural gas liquids (Boardwalk Pipeline Partners, LP (“Boardwalk Pipeline”), a 51% owned subsidiary); the operation of a chain of hotels (Loews Hotels Holding Corporation (“Loews Hotels & Co”), a wholly owned subsidiary); and the manufacture of rigid plastic packaging solutions (Consolidated Container Company LLC, a 99% owned subsidiary). Unless the context otherwise requires, the terms “Company,” “Loews” and “Registrant” as used herein mean Loews Corporation excluding its subsidiaries and the term “Net income (loss) attributable to Loews Corporation” as used herein means Net income (loss) attributable to Loews Corporation shareholders. In the opinion of management, the accompanying unaudited Consolidated Condensed Financial Statements reflect all adjustments (consisting of normal recurring accruals) necessary to present fairly the Company’s financial position as of June 30, 2017 and December 31, 2016, results of operations and comprehensive income for the three and six months ended June 30, 2017 and 2016 and changes in shareholders’ equity and cash flows for the six months ended June 30, 2017 and 2016. Net income (loss) for the second quarter and first half of each of the years is not necessarily indicative of net income (loss) for that entire year. These Consolidated Condensed Financial Statements should be read in conjunction with the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K The Company presents basic and diluted net income (loss) per share on the Consolidated Condensed Statements of Income. Basic net income (loss) per share excludes dilution and is computed by dividing net income (loss) attributable to common stock by the weighted average number of common shares outstanding for the period. Diluted net income 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. 0.6 million and 4.7 million shares for the three months ended June 30, 2017 and 2016 and 0.6 million and 5.1 million shares for the six months ended June 30, 2017 and 2016 attributable to employee stock-based compensation awards were not included in the diluted weighted average shares outstanding amounts because the effect would have been antidilutive. Accounting changes – 2016-09, Recently issued ASUs – 2014-09, In January of 2016, the FASB issued ASU 2016-01, – 825-10): In February of 2016, the FASB issued ASU 2016-02, 2014-09. In June of 2016, the FASB issued ASU 2016-13, available-for-sale available-for-sale |
Acquisition of Consolidated Con
Acquisition of Consolidated Container Company | 6 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisition of Consolidated Container Company | 2. Acquisition of Consolidated Container Company On May 22, 2017, the Company completed the previously announced acquisition of CCC Acquisition Holdings, Inc. for $1.2 billion, subject to closing adjustments. CCC Acquisition Holdings, Inc., through its wholly owned subsidiary, Consolidated Container Company LLC (“Consolidated Container”), is a rigid plastic packaging and recycled resins manufacturer that provides packaging solutions to end markets such as beverage, food and household chemicals through a network of manufacturing locations across North America. The results of Consolidated Container are included in the Consolidated Condensed Financial Statements since the acquisition date in the Corporate segment. Consolidated Container’s revenues were $91 million and, as a result of purchase accounting charges and acquisition costs, net income was not significant for the three and six months ended June 30, 2017. For the year ended December 31, 2016, Consolidated Container reported total revenues of $788 million. The acquisition was funded with approximately $620 million of parent company cash and debt financing proceeds at Consolidated Container of $600 million, as described below. The following table summarizes the preliminary allocation of the purchase price to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair value as of the acquisition date and is subject to change within the measurement period. The primary areas that are not yet finalized relate to working capital at closing and determination of tax bases of net assets acquired. (In millions) Cash $ 5 Property, plant and equipment 394 Goodwill 299 Other assets: Inventory 57 Customer relationships 457 Trade name 43 Other 122 Deferred income taxes (17) Other liabilities: Accounts payable (53) Pension liability (27) Other (53) $ 1,227 Customer relationships were valued using an income approach, which values the intangible asset at the present value of the related incremental after tax cash flows. The customer relationships intangible asset will be amortized over a useful life of 21 years. The trade name was valued using an income approach, which values the intangible asset based on an estimate of cost savings, or a relief from royalty. The trade name will be amortized over a useful life of 10 years. Goodwill includes value associated with the assembled workforce and Consolidated Container’s future growth and profitability. The assets acquired and liabilities assumed as part of the acquisition did not result in a step up of tax basis and approximately $94 million of goodwill is deductible for tax purposes. Consolidated Container entered into a credit agreement providing for a $605 million term loan and a five year $125 million asset based lending facility (“ABL facility”) in conjunction with the acquisition. The term loan is a variable rate facility which bears interest at a floating rate equal to the London Interbank Offered Rate (“LIBOR”) plus an applicable margin of 3.5%, subject to a 1.0% floor. The term loan matures on May 22, 2024 and requires annual principal amortization of 1.0% of the original loan amount beginning December 31, 2017. Consolidated Container recorded approximately $19 million of debt issuance costs, which will be amortized over the terms of the facilities. Consolidated Container entered into interest rate swaps for a notional amount of $500 million to hedge its cash flow exposure to the variable rate debt. These swaps effectively fix the interest rate on the hedged portion of the term loan at approximately 5.6%. As of June 30, 2017, Consolidated Container had no borrowings outstanding under its ABL facility. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2017 | |
Text Block [Abstract] | |
Investments | 3. Investments Net investment income is as follows: Three Months Ended Six Months Ended 2017 2017 (In millions) Fixed maturity securities $ 457 $ 449 $ 912 $ 895 Limited partnership investments 23 47 139 7 Short term investments 4 2 8 5 Equity securities 2 4 3 7 Income (loss) from trading portfolio (a) (1 ) 87 33 102 Other 8 13 16 22 Total investment income 493 602 1,111 1,038 Investment expenses (15 ) (15 ) (29 ) (29) Net investment income $ 478 $ 587 $ 1,082 $ 1,009 (a) Net unrealized gains (losses) related to changes in fair value on trading securities still held were $(6) and $60 for the three months ended June 30, 2017 and 2016 and $19 and $81 for the six months ended June 30, 2017 and 2016. Investment gains (losses) are as follows: Three Months Ended Six Months Ended 2017 2016 2017 2016 (In millions) Fixed maturity securities $ 44 $ 4 $ 76 $ (13) Equity securities 3 (2) Derivative instruments (3 ) (6 ) (2 ) (13) Short term investments and other 2 3 1 Investment gains (losses) (a) $ 43 $ 1 $ 77 $ (27) (a) Gross realized gains on available-for-sale available-for-sale The components of other-than-temporary impairment (“OTTI”) losses recognized in earnings by asset type are as follows: Three Months Ended Six Months Ended 2017 2016 2017 2016 (In millions) Fixed maturity securities available-for-sale: Corporate and other bonds $ 2 $ 13 $ 4 $ 29 Asset-backed: Residential mortgage-backed 1 1 Other asset-backed 1 3 Total asset-backed - 2 - 4 Total fixed maturities available-for-sale 2 15 4 33 Equity securities available-for-sale 5 Net OTTI losses recognized in earnings $ 2 $ 15 $ 4 $ 38 The amortized cost and fair values of securities are as follows: June 30, 2017 Cost or Gross Gross Estimated Unrealized (In millions) Fixed maturity securities: Corporate and other bonds $ 17,823 $ 1,589 $ 29 $ 19,383 States, municipalities and political subdivisions 12,461 1,380 15 13,826 $ (13 ) Asset-backed: Residential mortgage-backed 4,835 124 38 4,921 (27 ) Commercial mortgage-backed 1,907 59 14 1,952 Other asset-backed 1,050 16 5 1,061 Total asset-backed 7,792 199 57 7,934 (27 ) U.S. Treasury and obligations of government-sponsored enterprises 113 4 2 115 Foreign government 438 12 1 449 Redeemable preferred stock 18 1 19 Fixed maturities available- for-sale 38,645 3,185 104 41,726 (40 ) Fixed maturities trading 337 3 1 339 Total fixed maturities 38,982 3,188 105 42,065 (40 ) Equity securities: Common stock 17 5 22 Preferred stock 91 6 1 96 Equity securities available-for-sale 108 11 1 118 - Equity securities trading 495 79 85 489 Total equity securities 603 90 86 607 - Total $ 39,585 $ 3,278 $ 191 $ 42,672 $ (40 ) December 31, 2016 Fixed maturity securities: Corporate and other bonds $ 17,711 $ 1,323 $ 76 $ 18,958 $ (1 ) States, municipalities and political subdivisions 12,060 1,213 33 13,240 (16 ) Asset-backed: Residential mortgage-backed 5,004 120 51 5,073 (28 ) Commercial mortgage-backed 2,016 48 24 2,040 Other asset-backed 1,022 8 5 1,025 Total asset-backed 8,042 176 80 8,138 (28 ) U.S. Treasury and obligations of government-sponsored enterprises 83 10 93 Foreign government 435 13 3 445 Redeemable preferred stock 18 1 19 Fixed maturities available-for-sale 38,349 2,736 192 40,893 (45 ) Fixed maturities trading 598 3 601 Total fixed maturities 38,947 2,739 192 41,494 (45 ) Equity securities: Common stock 13 6 19 Preferred stock 93 2 4 91 Equity securities available-for-sale 106 8 4 110 - Equity securities trading 465 60 86 439 Total equity securities 571 68 90 549 - Total $ 39,518 $ 2,807 $ 282 $ 42,043 $ (45 ) The net unrealized gains on investments included in the tables above are recorded as a component of Accumulated other comprehensive income (“AOCI”). When presented in AOCI, these amounts are net of tax and noncontrolling interests and any required Shadow Adjustments. To the extent that unrealized gains on fixed income securities supporting certain long term care products would result in a premium deficiency if realized, a related increase in Insurance reserves is recorded, net of tax and noncontrolling interests, as a reduction of net unrealized gains through Other comprehensive income (“Shadow Adjustments”). As of June 30, 2017 and December 31, 2016, the net unrealized gains on investments included in AOCI were correspondingly reduced by Shadow Adjustments of $1.1 billion and $909 million (after tax and noncontrolling interests). The available-for-sale Less than 12 Months 12 Months or Longer Total June 30, 2017 Estimated Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses (In millions) Fixed maturity securities: Corporate and other bonds $ 1,314 $ 26 $ 52 $ 3 $ 1,366 $ 29 States, municipalities and political subdivisions 742 15 24 766 15 Asset-backed: Residential mortgage-backed 1,722 34 141 4 1,863 38 Commercial mortgage-backed 473 8 125 6 598 14 Other asset-backed 159 4 14 1 173 5 Total asset-backed 2,354 46 280 11 2,634 57 U.S. Treasury and obligations of government-sponsored enterprises 65 2 65 2 Foreign government 109 1 109 1 Total fixed maturity securities 4,584 90 356 14 4,940 104 Equity securities: Common stock 1 1 Preferred stock 15 1 15 1 Total equity securities 16 1 - - 16 1 Total $ 4,600 $ 91 $ 356 $ 14 $ 4,956 $ 105 December 31, 2016 Fixed maturity securities: Corporate and other bonds $ 2,615 $ 61 $ 254 $ 15 $ 2,869 $ 76 States, municipalities and political subdivisions 959 32 23 1 982 33 Asset-backed: Residential mortgage-backed 2,136 44 201 7 2,337 51 Commercial mortgage-backed 756 22 69 2 825 24 Other asset-backed 398 5 24 422 5 Total asset-backed 3,290 71 294 9 3,584 80 U.S. Treasury and obligations of government-sponsored enterprises 5 5 Foreign government 108 3 108 3 Total fixed maturity securities 6,977 167 571 25 7,548 192 Equity securities 12 13 4 25 4 Total $ 6,989 $ 167 $ 584 $ 29 $ 7,573 $ 196 Based on current facts and circumstances, the Company believes the unrealized losses presented in the June 30, 2017 securities in a gross unrealized loss position table above are not indicative of the ultimate collectibility of the current amortized cost of the securities, but rather are attributable to changes in interest rates, credit spreads and other factors. The Company has no current intent to sell securities with unrealized losses, nor is it more likely than not that it will be required to sell prior to recovery of amortized cost; accordingly, the Company has determined that there are no additional OTTI losses to be recorded as of June 30, 2017. The following table presents the activity related to the pretax credit loss component reflected in Retained earnings on fixed maturity securities still held as of June 30, 2017 and 2016 for which a portion of an OTTI loss was recognized in Other comprehensive income. Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (In millions) Beginning balance of credit losses on fixed maturity securities $ 32 $ 48 $ 36 $ 53 Reductions for securities sold during the period (2 ) (7 ) (6 ) (12 ) Ending balance of credit losses on fixed maturity securities $ 30 $ 41 $ 30 $ 41 Contractual Maturity The following table presents available-for-sale June 30, 2017 December 31, 2016 Cost or Estimated Cost or Estimated Amortized Fair Amortized Fair Cost Value Cost Value (In millions) Due in one year or less $ 1,590 $ 1,628 $ 1,779 $ 1,828 Due after one year through five years 7,732 8,098 7,566 7,955 Due after five years through ten years 15,754 16,404 15,892 16,332 Due after ten years 13,569 15,596 13,112 14,778 Total $ 38,645 $ 41,726 $ 38,349 $ 40,893 Actual maturities may differ from contractual maturities because certain securities may be called or prepaid. Securities not due at a single date are allocated based on weighted average life. Derivative Financial Instruments A summary of the aggregate contractual or notional amounts and gross estimated fair values related to derivative financial instruments follows. The contractual or notional amounts for derivatives are used to calculate the exchange of contractual payments under the agreements and may not be representative of the potential for gain or loss on these instruments. Gross estimated fair values of derivative positions are currently presented in Equity securities, Receivables and Payable to brokers on the Consolidated Condensed Balance Sheets. June 30, 2017 December 31, 2016 Contractual/ Contractual/ Notional Estimated Fair Value Notional Estimated Fair Value Amount Asset (Liability) Amount Asset (Liability) (In millions) With hedge designation: Interest rate risk: Interest rate swaps $ 500 Without hedge designation: Equity markets: Options – purchased 221 $ 14 $ 223 $ 14 231 $ (8 ) 267 $ (8 ) Futures – short 243 225 1 Commodity futures – long 37 1 42 Embedded derivative on funds withheld liability 171 (1 ) 174 3 |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 4. Fair Value Fair value is the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following fair value hierarchy is used in selecting inputs, with the highest priority given to Level 1, as these are the most transparent or reliable: • Level 1 – Quoted prices for identical instruments in active markets. • Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets. • Level 3 – Valuations derived from valuation techniques in which one or more significant inputs are not observable. Prices may fall within Level 1, 2 or 3 depending upon the methodology and inputs used to estimate fair value for each specific security. In general, the Company seeks to price securities using third party pricing services. Securities not priced by pricing services are submitted to independent brokers for valuation and, if those are not available, internally developed pricing models are used to value assets using a methodology and inputs the Company believes market participants would use to value the assets. Prices obtained from third-party pricing services or brokers are not adjusted by the Company. The Company performs control procedures over information obtained from pricing services and brokers to ensure prices received represent a reasonable estimate of fair value and to confirm representations regarding whether inputs are observable or unobservable. Procedures may include: (i) the review of pricing service methodologies or broker pricing qualifications, (ii) back-testing, where past fair value estimates are compared to actual transactions executed in the market on similar dates, (iii) exception reporting, where period-over-period changes in price are reviewed and challenged with the pricing service or broker based on exception criteria, (iv) detailed analysis, where the Company performs an independent analysis of the inputs and assumptions used to price individual securities and (v) pricing validation, where prices received are compared to prices independently estimated by the Company. Assets and liabilities measured at fair value on a recurring basis are presented in the following tables: June 30, 2017 Level 1 Level 2 Level 3 Total (In millions) Fixed maturity securities: Corporate and other bonds $ 19,283 $ 100 $ 19,383 States, municipalities and political subdivisions 13,825 1 13,826 Asset-backed: Residential mortgage-backed 4,798 123 4,921 Commercial mortgage-backed 1,939 13 1,952 Other asset-backed 979 82 1,061 Total asset-backed 7,716 218 7,934 U.S. Treasury and obligations of government-sponsored enterprises $ 115 115 Foreign government 449 449 Redeemable preferred stock 19 19 Fixed maturities available-for-sale 134 41,273 319 41,726 Fixed maturities trading 334 5 339 Total fixed maturities $ 134 $ 41,607 $ 324 $ 42,065 Equity securities available-for-sale $ 99 $ 19 $ 118 Equity securities trading 488 1 489 Total equity securities $ 587 $ - $ 20 $ 607 Short term investments $ 3,858 $ 981 $ 4,839 Other invested assets 60 5 65 Receivables 1 1 Life settlement contracts $ 1 1 Payable to brokers (8 ) (8 ) December 31, 2016 Level 1 Level 2 Level 3 Total (In millions) Fixed maturity securities: Corporate and other bonds $ 18,828 $ 130 $ 18,958 States, municipalities and political subdivisions 13,239 1 13,240 Asset-backed: Residential mortgage-backed 4,944 129 5,073 Commercial mortgage-backed 2,027 13 2,040 Other asset-backed 968 57 1,025 Total asset-backed 7,939 199 8,138 U.S. Treasury and obligations of government-sponsored enterprises $ 93 93 Foreign government 445 445 Redeemable preferred stock 19 19 Fixed maturities available-for-sale 112 40,451 330 40,893 Fixed maturities trading 595 6 601 Total fixed maturities $ 112 $ 41,046 $ 336 $ 41,494 Equity securities available-for-sale $ 91 $ 19 $ 110 Equity securities trading 438 1 439 Total equity securities $ 529 $ - $ 20 $ 549 Short term investments $ 3,833 $ 853 $ 4,686 Other invested assets 55 5 60 Receivables 1 1 Life settlement contracts $ 58 58 Payable to brokers (44 ) (44 ) The following tables present reconciliations for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2017 and 2016: Unrealized Gains (Losses) Net Realized Gains Recognized in (Losses) and Net Change Net Income in Unrealized Gains (Loss) on Level (Losses) 3 Assets and Included in Transfers Transfers Liabilities Balance, Net Income Included in into out of Balance, Held at 2017 April 1 (Loss) OCI Purchases Sales Settlements Level 3 Level 3 June 30 June 30 (In millions) Fixed maturity securities: Corporate and other bonds $ 121 $ (11) $ (10) $ 100 States, municipalities and political subdivisions 1 1 Asset-backed: Residential mortgage-backed 126 $ 1 $ 1 (5) 123 Commercial mortgage- backed 13 13 Other asset-backed 117 $ 13 (2) $ 24 (70) 82 Total asset-backed 256 1 1 13 $ - (7) 24 (70) 218 $ - Fixed maturities available-for-sale 378 1 1 13 (18) 24 (80) 319 Fixed maturities trading 5 5 (1) Total fixed maturities $ 383 $ 1 $ 1 $ 13 $ - $ (18) $ 24 $ (80) $ 324 $ (1) Equity securities available-for-sale $ 19 $ 1 $ (1) $ 19 Equity securities trading 1 1 Total equity securities $ 20 $ - $ 1 $ - $ (1) $ - $ - $ - $ 20 $ - Life settlement contracts $ 46 $ (45) $ 1 Unrealized Gains (Losses) Net Realized Gains Recognized in (Losses) and Net Change Net Income in Unrealized Gains (Loss) on Level (Losses) 3 Assets and Included in Transfers Transfers Liabilities Balance, Net Income Included in into out of Balance, Held at 2016 April 1 (Loss) OCI Purchases Sales Settlements Level 3 Level 3 June 30 June 30 (In millions) Fixed maturity securities: Corporate and other bonds $ 193 $ 1 $ 3 $ 94 $ (20) $ (7) $ (22) $ 242 States, municipalities and political subdivisions 2 2 Asset-backed: Residential mortgage-backed 128 1 (1) 10 (4) 134 Commercial mortgage- backed 27 (9) $ 3 (10) 11 Other asset-backed 50 2 35 (25) (1) (16) 45 Total asset-backed 205 1 1 45 (25) (14) 3 (26) 190 $ - Fixed maturities available-for-sale 400 2 4 139 (45) (21) 3 (48) 434 Fixed maturities trading 3 4 (1) 6 4 Total fixed maturities $ 403 $ 6 $ 4 $ 139 $ (46) $ (21) $ 3 $ (48) $ 440 $ 4 Equity securities available-for-sale $ 19 $ 19 Equity securities trading - $ 1 $ 1 2 $ 1 Total equity securities $ 19 $ 1 $ - $ 1 $ - $ - $ - $ - $ 21 $ 1 Life settlement contracts $ 72 $ 6 $ (11) $ 67 $ (3) Derivative financial instruments, net (2) $ 3 1 (3) Unrealized Gains (Losses) Net Realized Gains Recognized in (Losses) and Net Change Net Income in Unrealized Gains (Loss) on Level (Losses) 3 Assets and Included in Transfers Transfers Liabilities Balance, Net Income Included in into out of Balance, Held at 2017 January 1 (Loss) OCI Purchases Sales Settlements Level 3 Level 3 June 30 June 30 (In millions) Fixed maturity securities: Corporate and other bonds $ 130 $ 1 $ 5 $ (1) $ (25) $ (10) $ 100 States, municipalities and political subdivisions 1 1 Asset-backed: Residential mortgage-backed 129 $ 2 3 (11) 123 Commercial mortgage-backed 13 13 Other asset-backed 57 (1 ) 51 (2) $ 52 (75) 82 Total asset-backed 199 1 3 51 - (13) 52 (75) 218 $ - Fixed maturities available-for-sale 330 1 4 56 (1) (38) 52 (85) 319 Fixed maturities trading 6 (1 ) 5 (1) Total fixed maturities $ 336 $ - $ 4 $ 56 $ (1) $ (38) $ 52 $ (85) $ 324 $ (1) Equity securities available-for-sale $ 19 $ 2 $ 1 $ (3) $ 19 Equity securities trading 1 1 Total equity securities $ 20 $ - $ 2 $ 1 $ (3) $ - $ - $ - $ 20 $ - Life settlement contracts $ 58 $ 6 $ (58) $ (5) $ 1 Derivative financial instruments, net - 1 (1) - Unrealized Gains (Losses) Net Realized Gains Recognized in (Losses) and Net Change Net Income in Unrealized Gains (Loss) on Level (Losses) 3 Assets and Included in Transfers Transfers Liabilities Balance, Net Income Included in into out of Balance, Held at 2016 January 1 (Loss) OCI Purchases Sales Settlements Level 3 Level 3 June 30 June 30 (In millions) Fixed maturity securities: Corporate and other bonds $ 168 $ 7 $ 147 $ (36) $ (10) $ (34) $ 242 States, municipalities and political subdivisions 2 2 Asset-backed: Residential mortgage-backed 134 $ 2 (1) 10 (9) (2) 134 Commercial mortgage- backed 22 9 (9) $ 3 (14) 11 Other asset-backed 53 2 35 (25) (1) 2 (21) 45 Total asset-backed 209 2 1 54 (25) (19) 5 (37) 190 $ - Fixed maturities available-for-sale 379 2 8 201 (61) (29) 5 (71) 434 Fixed maturities trading 85 5 2 (86) 6 4 Total fixed maturities $ 464 $ 7 $ 8 $ 203 $ (147) $ (29) $ 5 $ (71) $ 440 $ 4 Equity securities available-for-sale $ 20 $ (1) $ 19 Equity securities trading 1 $ 1 $ 1 $ (1) 2 $ 1 Total equity securities $ 21 $ 1 $ (1) $ 1 $ (1) $ - $ - $ - $ 21 $ 1 Life settlement contracts $ 74 $ 10 $ (17) $ 67 $ (3) Derivative financial instruments, net 3 (3) $ (2) $ 3 1 (3) Net realized and unrealized gains and losses are reported in Net income (loss) as follows: Major Category of Assets and Liabilities Consolidated Condensed Statements of Income Line Items Fixed maturity securities available-for-sale Investment gains (losses) Fixed maturity securities, trading Net investment income Equity securities available-for-sale Investment gains (losses) Equity securities, trading Net investment income Other invested assets Investment gains (losses) and Net investment income Derivative financial instruments held in a trading portfolio Net investment income Derivative financial instruments, other Investment gains (losses) and Other revenues Life settlement contracts Other revenues Securities may be transferred in or out of levels within the fair value hierarchy based on the availability of observable market information and quoted prices used to determine the fair value of the security. The availability of observable market information and quoted prices varies based on market conditions and trading volume. During the three and six months ended June 30, 2017 and 2016 there were no transfers between Level 1 and Level 2. The Company’s policy is to recognize transfers between levels at the beginning of quarterly reporting periods. Valuation Methodologies and Inputs The following section describes the valuation methodologies and relevant inputs used to measure different financial instruments at fair value, including an indication of the level in the fair value hierarchy in which the instruments are generally classified. Fixed Maturity Securities Level 1 securities include highly liquid and exchange traded bonds and redeemable preferred stock, valued using quoted market prices. Level 2 securities include most other fixed maturity securities as the significant inputs are observable in the marketplace. All classes of Level 2 fixed maturity securities are valued using a methodology based on information generated by market transactions involving identical or comparable assets, a discounted cash flow methodology or a combination of both when necessary. Common inputs for all classes of fixed maturity securities include prices from recently executed transactions of similar securities, marketplace quotes, benchmark yields, spreads off benchmark yields, interest rates and U.S. Treasury or swap curves. Specifically for asset-backed securities, key inputs include prepayment and default projections based on past performance of the underlying collateral and current market data. Fixed maturity securities are primarily assigned to Level 3 in cases where broker/dealer quotes are significant inputs to the valuation, and there is a lack of transparency as to whether these quotes are based on information that is observable in the marketplace. Level 3 securities also include private placement debt securities whose fair value is determined using internal models with inputs that are not market observable. Equity Securities Level 1 equity securities include publicly traded securities valued using quoted market prices. Level 2 securities are primarily non-redeemable Derivative Financial Instruments Exchange traded derivatives are valued using quoted market prices and are classified within Level 1 of the fair value hierarchy. Level 2 derivatives primarily include currency forwards valued using observable market forward rates. Over-the-counter Short Term Investments Securities that are actively traded or have quoted prices are classified as Level 1. These securities include money market funds and treasury bills. Level 2 primarily includes commercial paper, for which all inputs are market observable. Fixed maturity securities purchased within one year of maturity are classified consistent with fixed maturity securities discussed above. Short term investments as presented in the tables above differ from the amounts presented in the Consolidated Condensed Balance Sheets because certain short term investments, such as time deposits, are not measured at fair value. Other Invested Assets Level 1 securities include exchange traded open-end Life Settlement Contracts CNA accounts for its investment in life settlement contracts using the fair value method. Historically, the fair value of life settlement contracts was determined as the present value of the anticipated death benefits less anticipated premium payments based on contract terms that are distinct for each insured, as well as CNA’s own assumptions for mortality, premium expense and the rate of return that a buyer would require on the contracts. The entire portfolio of life settlement contracts was determined to be held for sale as of December 31, 2016 as CNA reached an agreement on terms to sell the portfolio. As such, CNA adjusted the fair value to the estimated sales proceeds less cost to sell. The definitive Purchase and Sale Agreement (“PSA”) related to the portfolio was executed on March 7, 2017 (“sale date”). In connection therewith, the life settlement contracts and related sale proceeds were placed in escrow until the buyer is recognized as the owner and beneficiary of each individual life settlement contract by the life insurance company that issued the policy. All but $1 million of the contracts have been released from escrow as of June 30, 2017. CNA derecognized the released contracts and recorded the consideration, including a note receivable, which is payable over three years and is carried at amortized cost less any valuation allowance. The note receivable of $45 million is included within Other assets on the June 30, 2017 Consolidated Condensed Balance Sheet and interest income is accreted to the principal balance of the note receivable. The contracts remaining in escrow have not been derecognized, continue to be measured at the fair value per the PSA, and are expected to clear escrow in the third quarter of 2017. The fair value of CNA’s investments in life settlement contracts were $1 million and $58 million as of June 30, 2017 and December 31, 2016, and are included in Other assets on the Consolidated Condensed Balance Sheets. Despite the sale, the contracts have been classified as Level 3 as there is not an active market for life settlement contracts. The cash receipts and payments related to the life settlement contracts prior to the sale date are included in operating activities on the Consolidated Condensed Statements of Cash Flows. Cash receipts related to the sale of the life settlement contracts as well as principal payments on the note receivable are included in investing activities. Significant Unobservable Inputs The following tables present quantitative information about the significant unobservable inputs utilized by the Company in the fair value measurement 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 unobservable inputs from these broker quotes is neither provided nor reasonably available to the Company. The valuation of life settlement contracts was based on the terms of the sale of the contracts to a third party; therefore the contracts are not included in the tables below. June 30, 2017 Estimated Fair Value Valuation Techniques Unobservable Inputs Range (Weighted Average) (In millions) Fixed maturity securities $ 125 Discounted cash flow Credit spread 2% – 40% (4%) December 31, 2016 Fixed maturity securities $ 106 Discounted cash flow Credit spread 2% – 40% (4%) 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, estimated fair value and the level of the fair value hierarchy of the Company’s financial assets and liabilities which are not measured at fair value on the Consolidated Condensed Balance Sheets are presented in the following tables. The carrying amounts and estimated fair values of short term debt and long term debt exclude capital lease obligations. The carrying amounts reported on the Consolidated Condensed Balance Sheets for cash and short term investments not carried at fair value and certain other assets and liabilities approximate fair value due to the short term nature of these items. Carrying Estimated Fair Value June 30, 2017 Amount Level 1 Level 2 Level 3 Total (In millions) Assets: Other invested assets, primarily mortgage loans $ 646 $ 655 $ 655 Liabilities: Short term debt 190 $ 154 40 194 Long term debt 11,075 10,074 1,217 11,291 December 31, 2016 Assets: Other invested assets, primarily mortgage loans $ 591 $ 594 $ 594 Liabilities: Short term debt 107 $ 104 3 107 Long term debt 10,655 10,150 646 10,796 The following methods and assumptions were used in estimating the fair value of these financial assets and liabilities. The fair values of mortgage loans, included in Other invested assets, were based on the present value of the expected future cash flows discounted at the current interest rate for similar financial instruments, adjusted for specific loan risk. Fair value of debt was based on observable market prices when available. When observable market prices were not available, the fair value of debt was based on observable market prices of comparable instruments adjusted for differences between the observed instruments and the instruments being valued or is estimated using discounted cash flow analyses, based on current incremental borrowing rates for similar types of borrowing arrangements. |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 5. Property, Plant and Equipment Diamond Offshore Asset Impairments During the second quarter of 2017, Diamond Offshore evaluated seven drilling rigs with indicators of impairment. Due to the continued deterioration of market fundamentals in the contract drilling industry, as well as newly-available market projections, which indicated that a full market recovery is likely to occur further in the future than had previously been estimated, Diamond Offshore determined that the carrying values of one ultra-deepwater and one deepwater semisubmersible rig were impaired. Diamond Offshore estimated the fair value of the rigs impaired in 2017 using an income approach, whereby the fair value of each rig was estimated based on a calculation of the rig’s future net cash flows. These calculations utilized significant unobservable inputs, including estimated proceeds that may be received on ultimate disposition of the rig, and are representative of Level 3 fair value measurements due to the significant level of estimation involved and lack of transparency as to the inputs used. During the second quarter of 2017, Diamond Offshore recorded an asset impairment charge of $72 million ($23 million after tax and noncontrolling interests), which is included in Other operating expenses on the Consolidated Condensed Statements of Income. As of June 30, 2017, there were nine rigs in Diamond Offshore’s drilling fleet for which there were no current indicators that their carrying amounts may not be recoverable and, therefore, were not evaluated for impairment at that time. If market fundamentals in the offshore oil and gas industry deteriorate further or a projected market recovery is further delayed, additional impairment losses may be required to be recognized in future periods. Diamond Offshore recorded aggregate asset impairment charges of $672 million ($263 million after tax and noncontrolling interests), which is included in Other operating expenses on the Consolidated Condensed Statements of Income for the three and six months ended June 30, 2016. See Note 6 of the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K Boardwalk Pipeline Sale of Assets In May of 2017, Boardwalk Pipeline sold a processing plant and related assets, for approximately $65 million, including customary adjustments. The sale resulted in a loss of $47 million ($15 million after tax and noncontrolling interests) and is included in Other operating expenses on the Consolidated Condensed Statements of Income. |
Claim and Claim Adjustment Expe
Claim and Claim Adjustment Expense Reserves | 6 Months Ended |
Jun. 30, 2017 | |
Insurance [Abstract] | |
Claim and Claim Adjustment Expense Reserves | 6. Claim and Claim Adjustment Expense Reserves CNA’s property and casualty insurance claim and claim adjustment expense reserves represent the estimated amounts necessary to resolve all outstanding claims, including incurred but not reported (“IBNR”) claims as of the reporting date. CNA’s reserve projections are based primarily on detailed analysis of the facts in each case, CNA’s experience with similar cases and various historical development patterns. Consideration is given to such historical patterns as claim reserving trends and settlement practices, loss payments, pending levels of unpaid claims and product mix, as well as court decisions, economic conditions including inflation and public attitudes. All of these factors can affect the estimation of claim and claim adjustment expense reserves. Establishing claim and claim adjustment expense reserves, including claim and claim adjustment expense reserves for catastrophic events that have occurred, is an estimation process. Many factors can ultimately affect the final settlement of a claim and, therefore, the necessary reserve. Changes in the law, results of litigation, medical costs, the cost of repair materials and labor rates can all affect ultimate claim costs. In addition, time can be a critical part of reserving determinations since the longer the span between the incidence of a loss and the payment or settlement of the claim, the more variable the ultimate settlement amount can be. Accordingly, short-tail claims, such as property damage claims, tend to be more reasonably estimable than long-tail claims, such as workers’ compensation, general liability and professional liability claims. Adjustments to prior year reserve estimates, if necessary, are reflected in the results of operations in the period that the need for such adjustments is determined. There can be no assurance that CNA’s ultimate cost for insurance losses will not exceed current estimates. Catastrophes are an inherent risk of the property and casualty insurance business and have contributed to material period-to-period Liability for Unpaid Claim and Claim Adjustment Expenses Rollforward The following table presents a reconciliation between beginning and ending claim and claim adjustment expense reserves, including claim and claim adjustment expense reserves of non-core Six Months Ended June 30 2017 2016 (In millions) Reserves, beginning of year: Gross $ 22,343 $ 22,663 Ceded 4,094 4,087 Net reserves, beginning of year 18,249 18,576 Net incurred claim and claim adjustment expenses: Provision for insured events of current year 2,443 2,583 Decrease in provision for insured events of prior years (159 ) (198) Amortization of discount 93 93 Total net incurred (a) 2,377 2,478 Net payments attributable to: Current year events (266 ) (311) Prior year events (2,331 ) (2,185) Total net payments (2,597 ) (2,496) Foreign currency translation adjustment and other 70 46 Net reserves, end of period 18,099 18,604 Ceded reserves, end of period 4,080 4,371 Gross reserves, end of period $ 22,179 $ 22,975 (a) Total net incurred above does not agree to Insurance claims and policyholders’ benefits as reflected in the Consolidated Condensed Statements of Income due to amounts related to retroactive reinsurance deferred gain accounting, uncollectible reinsurance and loss deductible receivables and benefit expenses related to future policy benefits, which are not reflected in the table above. Net Prior Year Development Changes in estimates of claim and allocated claim adjustment expense reserves and premium accruals, net of reinsurance, for prior years are defined as net prior year development. These changes can be favorable or unfavorable. The following table and discussion present net prior year development: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (In millions) Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development $ (55 ) $ (98 ) $ (112 ) $ (150 ) Pretax (favorable) unfavorable premium development (8 ) (8 ) 17 (22 ) Total pretax (favorable) unfavorable net prior year development $ (63 ) $ (106 ) $ (95 ) $ (172 ) Premium development can occur in the property and casualty business when there is a change in exposure on auditable policies or when premium accruals differ from processed premium. Audits on policies usually occur in a period after the expiration date of the policy. See Note 10 for further information on the premium development for the Small Business multi-peril package product and workers’ compensation policies for the three and six months ended June 30, 2017. The following table and discussion present details of the net prior year claim and allocated claim adjustment expense reserve development (“development”): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (In millions) Medical professional liability $ 3 $ (23 ) $ 4 $ (30 ) Other professional liability and management liability (37 ) (41 ) (69 ) (50 ) Commercial auto (20 ) (26 ) (35 ) General liability (1 ) (37 ) (1 ) (52 ) Workers’ compensation (46 ) 50 (46 ) 54 Other 26 (27 ) 26 (37 ) Total pretax (favorable) unfavorable development $ (55 ) $ (98 ) $ (112 ) $ (150 ) Three Months 2017 Favorable development in other professional liability and management liability was primarily due to lower than expected claim frequency in accident years 2013 through 2015 and lower than expected severity in accident years 2014 through 2016 for professional liability. Favorable development for workers’ compensation was primarily related to decreases in frequency and severity in recent accident years, partially attributable to California reforms related to decreases in medical costs. Unfavorable development for other coverages was primarily due to higher than expected severity in accident year 2016 for property and other, higher than expected severity in accident year 2015 arising from the management liability business for other professional liability and adverse large claims experience in the Hardy political risks portfolio, relating largely to accident year 2016. This unfavorable development was partially offset by favorable development in accident years 2014 and prior for other professional liability and better than expected frequency in accident years 2014 through 2016, for property and marine. 2016 Favorable development in medical professional liability was due to lower than expected severity for individual healthcare professionals and allied facilities for accident years 2014 and prior. Favorable development in other professional liability and management liability was primarily related to lower than expected frequency of claims in accident years 2010 through 2015, mainly driven by professional services. This was partially offset by unfavorable development in accident year 2015 related to an increase in management liability frequency of larger claims. Favorable development for commercial auto was primarily due to favorable settlements on claims in accident years 2010 through 2014. Favorable development for general liability was primarily due to better than expected claim settlements in accident years 2012 through 2014 and better than expected severity on umbrella claims in accident years 2010 through 2013. Unfavorable development for workers’ compensation was due to a reduction in estimated recoveries on war hazard claims for Defense Base Act contractors, which was partially offset by favorable development related to lower than expected frequencies for the small and middle market businesses in accident years 2009 through 2014. Favorable development for other coverages was primarily due to better than expected loss emergence in accident years 2013 through 2015 for property and other, better than expected severity in accident years 2013 and prior for liability and better than expected severity in auto liability in accident years 2011 through 2015, partially offset by unfavorable development for higher than expected large loss emergence in accident years 2011 through 2015 for other professional liability. Six Months 2017 Favorable development in other professional liability and management liability was primarily due to favorable settlements on closed claims and a lower frequency of large losses for accident years 2011 through 2016 for professional and management liability, lower than expected claim frequency in accident years 2013 through 2015 for professional liability and lower than expected severity in accident years 2014 through 2016 for professional liability. Favorable development for commercial auto was primarily due to lower than expected severity in accident years 2013 through 2015. Favorable development for workers’ compensation was primarily related to decreases in frequency and severity in recent accident years, partially attributable to California reforms related to decreases in medical costs. The drivers of development for the six month period for other coverages were generally consistent with the three month summary above. 2016 Favorable development for medical professional liability was primarily due to lower than expected severity for individual healthcare professionals, allied facilities, and hospitals in accident years 2011 and prior. This was partially offset by unfavorable development in accident years 2012 and 2013 related to higher than expected large loss emergence in hospitals and higher than expected severity in accident years 2014 and 2015 in the aging services business. Favorable development in other professional liability and management liability was primarily related to lower than expected frequency of claims in accident years 2010 through 2015, mainly driven by professional services. Additional favorable development was related to favorable outcomes on larger claims in 2013 and prior in professional services. This was partially offset by unfavorable development in accident years 2014 and 2015 related to an increase in management liability frequency of larger claims. Favorable development for commercial auto was primarily due to favorable settlements on claims in accident years 2010 through 2014. Favorable development for general liability was primarily due to better than expected claim settlements in accident years 2012 through 2014 and better than expected severity on umbrella claims in accident years 2010 through 2013. Unfavorable development for workers’ compensation was due to a reduction in estimated recoveries on war hazard claims for Defense Base Act contractors, which was partially offset by favorable development related to lower than expected frequencies for the small and middle market businesses in accident years 2009 through 2014. Favorable development for other coverages was primarily due to better than expected claim frequency in property coverages in accident year 2015, better than expected loss emergence in accident years 2013 through 2015 for property and other, better than expected severity in accident years 2013 and prior for liability and better than expected severity in auto liability in accident years 2011 through 2015. This favorable development was partially offset by unfavorable development which was primarily due to higher than expected severity from a 2015 catastrophe event for property and other and higher than expected large loss emergence in accident years 2011 through 2015 for other professional liability. Asbestos and Environmental Pollution (“A&EP”) Reserves In 2010, Continental Casualty Company (“CCC”) together with several of CNA’s insurance subsidiaries completed a transaction with National Indemnity Company (“NICO”), a subsidiary of Berkshire Hathaway Inc., under which substantially all of CNA’s legacy A&EP liabilities were ceded to NICO through a loss portfolio transfer (“LPT”). At the effective date of the transaction, CNA ceded approximately $1.6 billion of net A&EP claim and allocated claim adjustment expense reserves to NICO under a retroactive reinsurance agreement with an aggregate limit of $4.0 billion. The $1.6 billion of claim and allocated claim adjustment expense reserves ceded to NICO was net of $1.2 billion of ceded claim and allocated claim adjustment expense reserves under existing third party reinsurance contracts. The NICO LPT aggregate reinsurance limit also covers credit risk on the existing third party reinsurance related to these liabilities. CNA paid NICO a reinsurance premium of $2.0 billion and transferred to NICO billed third party reinsurance receivables related to A&EP claims with a net book value of $215 million, resulting in total consideration of $2.2 billion. Subsequent to the effective date of the LPT, CNA recognized adverse prior year development on its A&EP reserves which resulted in additional amounts ceded under the LPT. As a result, the cumulative amounts ceded under the LPT exceeded the $2.2 billion consideration paid, resulting in the NICO LPT moving into a gain position, requiring retroactive reinsurance accounting. Under retroactive reinsurance accounting, this gain is deferred and only recognized in earnings in proportion to actual paid recoveries under the LPT. Over the life of the contract, there is no economic impact as long as any additional losses incurred are within the limit of the LPT. In a period in which CNA recognizes a change in the estimate of A&EP reserves that increases the amounts ceded under the LPT, the proportion of actual paid recoveries to total ceded losses is impacted and the change in the deferred gain is recognized in earnings as if the revised estimate of ceded losses was available at the effective date of the LPT. The effect of the deferred retroactive reinsurance benefit is recorded in Insurance claims and policyholders’ benefits in the Consolidated Condensed Statements of Income. The following table presents the impact of the loss portfolio transfer on the Consolidated Condensed Statements of Income. Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (In millions) Net A&EP adverse development before consideration of LPT $ - $ - $ 60 $ 200 Retroactive reinsurance benefit recognized (3 ) (9 ) (43 ) (82 ) Pretax impact of A&EP reserve development and the LPT $ (3 ) $ (9 ) $ 17 $ 118 Based upon CNA’s annual A&EP reserve review, net unfavorable prior year development of $60 million and $200 million was recognized before consideration of cessions to the LPT for the six months ended June 30, 2017 and 2016. The 2017 unfavorable development was driven by modestly higher anticipated payouts on claims from known sources of asbestos exposure. The 2016 unfavorable development was driven by an increase in anticipated future expenses associated with determination of coverage, higher anticipated payouts associated with a limited number of historical accounts having significant asbestos exposures and higher than expected severity on pollution claims. While this unfavorable development was ceded to NICO under the LPT, CNA’s reported earnings in both periods were negatively affected due to the application of retroactive reinsurance accounting. As of June 30, 2017 and December 31, 2016, the cumulative amounts ceded under the LPT were $2.9 billion and $2.8 billion. The unrecognized deferred retroactive reinsurance benefit was $351 million and $334 million as of June 30, 2017 and December 31, 2016. NICO established a collateral trust account as security for its obligations to CNA. The fair value of the collateral trust account was $2.8 billion as of June 30, 2017 and December 31, 2016. In addition, Berkshire Hathaway Inc. guaranteed the payment obligations of NICO up to the aggregate reinsurance limit as well as certain of NICO’s performance obligations under the trust agreement. NICO is responsible for claims handling and billing and collection from third-party reinsurers related to CNA’s A&EP claims. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Shareholders' Equity | 7. Shareholders’ Equity Accumulated other comprehensive income (loss) The tables below present the changes in AOCI by component for the three and six months ended June 30, 2016 and 2017: Total Accumulated OTTI Unrealized Foreign Other Gains Gains (Losses) Cash Flow Pension Currency Comprehensive (Losses) on Investments Hedges Liability Translation Income (Loss) (In millions) Balance, April 1, 2016 $ 29 $ 554 $ (2 ) $ (643 ) $ (64 ) $ (126 ) Other comprehensive income (loss) before reclassifications, after tax of $1, $(164), $0, $0 and $0 (1 ) 322 (48 ) 273 Reclassification of (gains) losses from accumulated other comprehensive income, after tax of $0, $6, $0, $(4) and $0 (1 ) 5 4 Other comprehensive income (loss) (1 ) 321 - 5 (48 ) 277 Amounts attributable to noncontrolling interests (37 ) (1 ) 6 (32 ) Balance, June 30, 2016 $ 28 $ 838 $ (2 ) $ (639 ) $ (106 ) $ 119 Balance, April 1, 2017 $ 23 $ 636 $ (2 ) $ (638 ) $ (168 ) $ (149 ) Other comprehensive income (loss) before reclassifications, after tax of $1, $(63), $0, $0 and $0 (1 ) 108 42 149 Reclassification of (gains) losses from accumulated other comprehensive income, after tax of $(1), $15, $0, $(3) and $0 1 (31 ) 7 (23 ) Other comprehensive income - 77 - 7 42 126 Amounts attributable to noncontrolling interests (8 ) (1 ) (4 ) (13 ) Balance, June 30, 2017 $ 23 $ 705 $ (2 ) $ (632 ) $ (130 ) $ (36 ) Total Accumulated OTTI Unrealized Foreign Other Gains Gains (Losses) Cash Flow Pension Currency Comprehensive (Losses) on Investments Hedges Liability Translation Income (Loss) (In millions) Balance, January 1, 2016 $ 24 $ 347 $ (3 ) $ (649 ) $ (76 ) $ (357 ) Other comprehensive income (loss) before reclassifications, after tax of $(1), $(272), $0, $0 and $0 2 539 (34 ) 507 Reclassification of losses from accumulated other comprehensive income, after tax of $(1), $(1), $0, $(7) and $0 2 10 1 13 26 Other comprehensive income (loss) 4 549 1 13 (34 ) 533 Amounts attributable to noncontrolling interests (58 ) (3 ) 4 (57 ) Balance, June 30, 2016 $ 28 $ 838 $ (2 ) $ (639 ) $ (106 ) $ 119 Balance, January 1, 2017 $ 27 $ 576 $ (2 ) $ (646 ) $ (178 ) $ (223 ) Other comprehensive income (loss) before reclassifications, after tax of $0, $(110), $0, $0 and $0 (1 ) 193 (1 ) 53 244 Reclassification of (gains) losses from accumulated other comprehensive income, after tax of $1, $24, $0, $(7) and $0 (3 ) (49 ) 1 15 (36 ) Other comprehensive income (loss) (4 ) 144 - 15 53 208 Amounts attributable to noncontrolling interests (15 ) (1 ) (5 ) (21 ) Balance, June 30, 2017 $ 23 $ 705 $ (2 ) $ (632 ) $ (130 ) $ (36 ) Amounts reclassified from AOCI shown above are reported in Net income (loss) as follows: Major Category of AOCI Affected Line Item OTTI gains (losses) Investment gains (losses) Unrealized gains (losses) on investments Investment gains (losses) Cash flow hedges Other revenues, Interest expense and Contract drilling expenses Pension liability Other operating expenses Treasury Stock The Company repurchased 0.1 million and 2.6 million shares of Loews common stock at aggregate costs of $6 million and $98 million during the six months ended June 30, 2017 and 2016. |
Benefit Plans
Benefit Plans | 6 Months Ended |
Jun. 30, 2017 | |
Retirement Benefits [Abstract] | |
Benefit Plans | 8. Benefit Plans The Company has several non-contributory The following table presents the components of net periodic benefit cost for the plans: Pension Benefits Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (In millions) Service cost $ 2 $ 2 $ 4 $ 4 Interest cost 29 32 59 64 Expected return on plan assets (43) (44) (86) (88) Amortization of unrecognized net loss 11 12 22 23 Settlement charge 1 1 3 2 Net periodic benefit cost $ - $ 3 $ 2 $ 5 Other Postretirement Benefits Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (In millions) Interest cost $ 1 $ 1 Expected return on plan assets $ (1) $ (1) (2) (2) Amortization of unrecognized prior service benefit (1) (1) (2) Net periodic benefit cost $ (1) $ (2) $ (2) $ (3) |
Legal Proceedings
Legal Proceedings | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | 9. Legal Proceedings CNA Financial In September of 2016, a class action lawsuit was filed against CCC, Continental Assurance Company (“CAC”), CNA, the Investment Committee of the CNA 401(k) Plus Plan, The Northern Trust Company and John Does 1-10 CNA believes the likelihood of loss is reasonably possible; however, given the status of the litigation, the novel issues raised by the allegations and the uncertainty as to how to assess potential damages, management is currently unable to predict the final outcome. The Plan trustees have provided notice to their fiduciary coverage insurance carriers. Based on CNA’s current assessment and consideration of available insurance coverage, CNA does not believe that the ultimate resolution of this matter will have a material impact on its condensed consolidated financial statements; however, the timing of recognition of loss, if any, and insurance recovery, if any, may differ. Other Litigation The Company and its subsidiaries are parties to other litigation arising in the ordinary course of business. The outcome of this litigation will not, in the opinion of management, materially affect the Company’s results of operations or equity. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. Commitments and Contingencies CNA Guarantees In the course of selling business entities and assets to third parties, CNA agreed to guarantee the performance of certain obligations of previously owned subsidiaries and to indemnify purchasers for losses arising out of breaches of representations and warranties with respect to the business entities or assets sold, including, in certain cases, losses arising from undisclosed liabilities or certain named litigation. Such guarantee and indemnification agreements in effect for sales of business entities, assets and third party loans may include provisions that survive indefinitely. As of June 30, 2017, the aggregate amount related to quantifiable guarantees was $434 million and the aggregate amount related to quantifiable indemnification agreements was $254 million. In certain cases, should CNA be required to make payments under any such guarantee, it would have the right to seek reimbursement from an affiliate of a previously owned subsidiary. In addition, CNA has agreed to provide indemnification to third party purchasers for certain losses associated with sold business entities or assets that are not limited by a contractual monetary amount. As of June 30, 2017, CNA had outstanding unlimited indemnifications in connection with the sales of certain of its business entities or assets that included tax liabilities arising prior to a purchaser’s ownership of an entity or asset, defects in title at the time of sale, employee claims arising prior to closing and in some cases losses arising from certain litigation and undisclosed liabilities. Certain provisions of the indemnification agreements survive indefinitely while others survive until the applicable statutes of limitation expire, or until the agreed upon contract terms expire. CNA also provided guarantees, if the primary obligor fails to perform, to holders of structured settlement annuities provided by a previously owned subsidiary. As of June 30, 2017, the potential amount of future payments CNA could be required to pay under these guarantees was approximately $1.8 billion, which will be paid over the lifetime of the annuitants. CNA does not believe any payment is likely under these guarantees, as CNA is the beneficiary of a trust that must be maintained at a level that approximates the discounted reserves for these annuities. CNA Small Business Premium Rate Adjustment In prior quarters, CNA identified rating errors related to its multi-peril package product and workers’ compensation policies within its Small Business unit and CNA is in the process of voluntarily issuing premium refunds related to affected policies. After the rating errors were identified, written and earned premium have been reported net of any impact from the premium rate adjustments. Premium development recognized as a result of the rating errors was favorable of $1 million and adverse of $37 million for the three and six months ended June 30, 2017. The estimated refund liability for the multi-peril product and workers’ compensation policies as of June 30, 2017 was $96 million. CNA has reduced pretax income by $1 million and $6 million for the three and six months ended June 30, 2017 for interest due to policyholders on the aggregate refund amounts. The amount of the refund and corresponding liability will continue to increase until required changes to the automated rating processes are fully implemented. The required changes were implemented in the second quarter of 2017 for the multi-peril product and are expected to be implemented by the end of the third quarter of 2017 for workers’ compensation policies. Any fines or penalties related to the foregoing are reasonably possible, but are not expected to be material to the Company’s financial statements. |
Segments
Segments | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segments | 11. Segments The Company has five reportable segments comprised of its four individual operating subsidiaries, CNA, Diamond Offshore, Boardwalk Pipeline and Loews Hotels & Co; and the Corporate segment. Each of the operating subsidiaries are headed by a chief executive officer who is responsible for the operation of its business and has the duties and authority commensurate with that position. The operations of Consolidated Container since the acquisition date are included in the Corporate segment. For additional disclosures regarding the composition of the Company’s segments, see Note 20 of the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K The following tables present the reportable segments of the Company and their contribution to the Consolidated Condensed Statements of Income. Amounts presented will not necessarily be the same as those in the individual financial statements of the Company’s subsidiaries due to adjustments for purchase accounting, income taxes and noncontrolling interests. Statements of Income by segment are presented in the following tables. Three Months Ended June 30, 2017 CNA Financial Diamond Offshore Boardwalk Pipeline Loews Hotels & Co Corporate Total (In millions) Revenues: Insurance premiums $ 1,734 $ 1,734 Net investment income 475 $ 1 $ 2 478 Investment gains 43 43 Contract drilling revenues 392 392 Other revenues 114 6 $ 318 $ 181 93 712 Total 2,366 399 318 181 95 3,359 Expenses: Insurance claims and policyholders’ benefits 1,280 1,280 Amortization of deferred acquisition costs 312 312 Contract drilling expenses 196 196 Other operating expenses 364 185 251 155 130 1,085 Interest 40 27 44 6 22 139 Total 1,996 408 295 161 152 3,012 Income (loss) before income tax 370 (9 ) 23 20 (57 ) 347 Income tax (expense) benefit (98 ) 23 (5 ) (10 ) 21 (69) Net income (loss) 272 14 18 10 (36 ) 278 Amounts attributable to noncontrolling interests (28 ) (7 ) (12 ) (47) Net income (loss) attributable to Loews Corporation $ 244 $ 7 $ 6 $ 10 $ (36 ) $ 231 Three Months Ended June 30, 2016 CNA Diamond Boardwalk Loews Corporate Total (In millions) Revenues: Insurance premiums $ 1,730 $ 1,730 Net investment income 502 $ 85 587 Investment gains (losses) 13 $ (12 ) 1 Contract drilling revenues 357 357 Other revenues 103 33 $ 308 $ 189 (1 ) 632 Total 2,348 378 308 189 84 3,307 Expenses: Insurance claims and policyholders’ benefits 1,339 1,339 Amortization of deferred acquisition costs 305 305 Contract drilling expenses 198 198 Other operating expenses 376 825 198 180 32 1,611 Interest 38 24 45 5 18 130 Total 2,058 1,047 243 185 50 3,583 Income (loss) before income tax 290 (669 ) 65 4 34 (276 ) Income tax (expense) benefit (80 ) 99 (16 ) (3 ) (12 ) (12 ) Net income (loss) 210 (570 ) 49 1 22 (288 ) Amounts attributable to noncontrolling interests (21 ) 276 (32 ) 223 Net income (loss) attributable to Loews Corporation $ 189 $ (294 ) $ 17 $ 1 $ 22 $ (65 ) Six Months Ended June 30, 2017 CNA Diamond Boardwalk Loews Corporate Total (In millions) Revenues: Insurance premiums $ 3,379 $ 3,379 Net investment income 1,020 $ 1 $ 61 1,082 Investment gains 77 77 Contract drilling revenues 756 756 Other revenues 219 19 $ 686 $ 348 93 1,365 Total 4,695 776 686 348 154 6,659 Expenses: Insurance claims and policyholders’ benefits 2,573 2,573 Amortization of deferred acquisition costs 617 617 Contract drilling expenses 400 400 Other operating expenses 707 305 455 296 168 1,931 Interest 83 55 90 13 40 281 Total 3,980 760 545 309 208 5,802 Income (loss) before income tax 715 16 141 39 (54 ) 857 Income tax (expense) benefit (182 ) 21 (28 ) (19 ) 20 (188 ) Net income (loss) 533 37 113 20 (34 ) 669 Amounts attributable to noncontrolling interests (55 ) (18 ) (70 ) (143 ) Net income (loss) attributable to Loews Corporation $ 478 $ 19 $ 43 $ 20 $ (34 ) $ 526 Six Months Ended June 30, 2016 CNA Diamond Boardwalk Loews Corporate Total (In millions) Revenues: Insurance premiums $ 3,429 $ 3,429 Net investment income 937 $ 72 1,009 Investment losses (15 ) $ (12 ) (27 ) Contract drilling revenues 801 801 Other revenues 200 60 $ 655 $ 352 1 1,268 Total 4,551 849 655 352 73 6,480 Expenses: Insurance claims and policyholders’ benefits 2,747 2,747 Amortization of deferred acquisition costs 612 612 Contract drilling expenses 411 411 Other operating expenses 756 974 403 328 57 2,518 Interest 88 50 88 11 36 273 Total 4,203 1,435 491 339 93 6,561 Income (loss) before income tax 348 (586 ) 164 13 (20 ) (81 ) Income tax (expense) benefit (71 ) 100 (35 ) (9 ) 7 (8 ) Net income (loss) 277 (486 ) 129 4 (13 ) (89 ) Amounts attributable to noncontrolling interests (28 ) 235 (81 ) 126 Net income (loss) attributable to Loews Corporation $ 249 $ (251 ) $ 48 $ 4 $ (13 ) $ 37 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Accounting | Loews Corporation is a holding company. Its subsidiaries are engaged in the following lines of business: commercial property and casualty insurance (CNA Financial Corporation (“CNA”), a 90% owned subsidiary); the operation of offshore oil and gas drilling rigs (Diamond Offshore Drilling, Inc. (“Diamond Offshore”), a 53% owned subsidiary); transportation and storage of natural gas and natural gas liquids (Boardwalk Pipeline Partners, LP (“Boardwalk Pipeline”), a 51% owned subsidiary); the operation of a chain of hotels (Loews Hotels Holding Corporation (“Loews Hotels & Co”), a wholly owned subsidiary); and the manufacture of rigid plastic packaging solutions (Consolidated Container Company LLC, a 99% owned subsidiary). Unless the context otherwise requires, the terms “Company,” “Loews” and “Registrant” as used herein mean Loews Corporation excluding its subsidiaries and the term “Net income (loss) attributable to Loews Corporation” as used herein means Net income (loss) attributable to Loews Corporation shareholders. In the opinion of management, the accompanying unaudited Consolidated Condensed Financial Statements reflect all adjustments (consisting of normal recurring accruals) necessary to present fairly the Company’s financial position as of June 30, 2017 and December 31, 2016, results of operations and comprehensive income for the three and six months ended June 30, 2017 and 2016 and changes in shareholders’ equity and cash flows for the six months ended June 30, 2017 and 2016. Net income (loss) for the second quarter and first half of each of the years is not necessarily indicative of net income (loss) for that entire year. These Consolidated Condensed Financial Statements should be read in conjunction with the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K |
Income Per Share | The Company presents basic and diluted net income (loss) per share on the Consolidated Condensed Statements of Income. Basic net income (loss) per share excludes dilution and is computed by dividing net income (loss) attributable to common stock by the weighted average number of common shares outstanding for the period. Diluted net income 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. 0.6 million and 4.7 million shares for the three months ended June 30, 2017 and 2016 and 0.6 million and 5.1 million shares for the six months ended June 30, 2017 and 2016 attributable to employee stock-based compensation awards were not included in the diluted weighted average shares outstanding amounts because the effect would have been antidilutive. |
Accounting changes | Accounting changes – 2016-09, |
Recently issued ASUs | Recently issued ASUs – 2014-09, In January of 2016, the FASB issued ASU 2016-01, – 825-10): In February of 2016, the FASB issued ASU 2016-02, 2014-09. In June of 2016, the FASB issued ASU 2016-13, available-for-sale available-for-sale |
Acquisition of Consolidated C20
Acquisition of Consolidated Container Company (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Summary of Preliminary Allocation of Purchase Price to Tangible and Identifiable Intangible Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary allocation of the purchase price to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair value as of the acquisition date and is subject to change within the measurement period. The primary areas that are not yet finalized relate to working capital at closing and determination of tax bases of net assets acquired. (In millions) Cash $ 5 Property, plant and equipment 394 Goodwill 299 Other assets: Inventory 57 Customer relationships 457 Trade name 43 Other 122 Deferred income taxes (17) Other liabilities: Accounts payable (53) Pension liability (27) Other (53) $ 1,227 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Text Block [Abstract] | |
Net Investment Income and Investment Gains (Losses) | Net investment income is as follows: Three Months Ended Six Months Ended 2017 2017 (In millions) Fixed maturity securities $ 457 $ 449 $ 912 $ 895 Limited partnership investments 23 47 139 7 Short term investments 4 2 8 5 Equity securities 2 4 3 7 Income (loss) from trading portfolio (a) (1 ) 87 33 102 Other 8 13 16 22 Total investment income 493 602 1,111 1,038 Investment expenses (15 ) (15 ) (29 ) (29) Net investment income $ 478 $ 587 $ 1,082 $ 1,009 (a) Net unrealized gains (losses) related to changes in fair value on trading securities still held were $(6) and $60 for the three months ended June 30, 2017 and 2016 and $19 and $81 for the six months ended June 30, 2017 and 2016. Investment gains (losses) are as follows: Three Months Ended Six Months Ended 2017 2016 2017 2016 (In millions) Fixed maturity securities $ 44 $ 4 $ 76 $ (13) Equity securities 3 (2) Derivative instruments (3 ) (6 ) (2 ) (13) Short term investments and other 2 3 1 Investment gains (losses) (a) $ 43 $ 1 $ 77 $ (27) (a) Gross realized gains on available-for-sale available-for-sale |
Components of Other-than-Temporary Impairment Losses Recognized in Earnings by Asset Type | The components of other-than-temporary impairment (“OTTI”) losses recognized in earnings by asset type are as follows: Three Months Ended Six Months Ended 2017 2016 2017 2016 (In millions) Fixed maturity securities available-for-sale: Corporate and other bonds $ 2 $ 13 $ 4 $ 29 Asset-backed: Residential mortgage-backed 1 1 Other asset-backed 1 3 Total asset-backed - 2 - 4 Total fixed maturities available-for-sale 2 15 4 33 Equity securities available-for-sale 5 Net OTTI losses recognized in earnings $ 2 $ 15 $ 4 $ 38 |
Amortized Cost and Fair Values of Securities | The amortized cost and fair values of securities are as follows: June 30, 2017 Cost or Gross Gross Estimated Unrealized (In millions) Fixed maturity securities: Corporate and other bonds $ 17,823 $ 1,589 $ 29 $ 19,383 States, municipalities and political subdivisions 12,461 1,380 15 13,826 $ (13 ) Asset-backed: Residential mortgage-backed 4,835 124 38 4,921 (27 ) Commercial mortgage-backed 1,907 59 14 1,952 Other asset-backed 1,050 16 5 1,061 Total asset-backed 7,792 199 57 7,934 (27 ) U.S. Treasury and obligations of government-sponsored enterprises 113 4 2 115 Foreign government 438 12 1 449 Redeemable preferred stock 18 1 19 Fixed maturities available- for-sale 38,645 3,185 104 41,726 (40 ) Fixed maturities trading 337 3 1 339 Total fixed maturities 38,982 3,188 105 42,065 (40 ) Equity securities: Common stock 17 5 22 Preferred stock 91 6 1 96 Equity securities available-for-sale 108 11 1 118 - Equity securities trading 495 79 85 489 Total equity securities 603 90 86 607 - Total $ 39,585 $ 3,278 $ 191 $ 42,672 $ (40 ) December 31, 2016 Fixed maturity securities: Corporate and other bonds $ 17,711 $ 1,323 $ 76 $ 18,958 $ (1 ) States, municipalities and political subdivisions 12,060 1,213 33 13,240 (16 ) Asset-backed: Residential mortgage-backed 5,004 120 51 5,073 (28 ) Commercial mortgage-backed 2,016 48 24 2,040 Other asset-backed 1,022 8 5 1,025 Total asset-backed 8,042 176 80 8,138 (28 ) U.S. Treasury and obligations of government-sponsored enterprises 83 10 93 Foreign government 435 13 3 445 Redeemable preferred stock 18 1 19 Fixed maturities available-for-sale 38,349 2,736 192 40,893 (45 ) Fixed maturities trading 598 3 601 Total fixed maturities 38,947 2,739 192 41,494 (45 ) Equity securities: Common stock 13 6 19 Preferred stock 93 2 4 91 Equity securities available-for-sale 106 8 4 110 - Equity securities trading 465 60 86 439 Total equity securities 571 68 90 549 - Total $ 39,518 $ 2,807 $ 282 $ 42,043 $ (45 ) |
Securities Available-for-Sale in Gross Unrealized Loss Position | The available-for-sale Less than 12 Months 12 Months or Longer Total June 30, 2017 Estimated Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses (In millions) Fixed maturity securities: Corporate and other bonds $ 1,314 $ 26 $ 52 $ 3 $ 1,366 $ 29 States, municipalities and political subdivisions 742 15 24 766 15 Asset-backed: Residential mortgage-backed 1,722 34 141 4 1,863 38 Commercial mortgage-backed 473 8 125 6 598 14 Other asset-backed 159 4 14 1 173 5 Total asset-backed 2,354 46 280 11 2,634 57 U.S. Treasury and obligations of government-sponsored enterprises 65 2 65 2 Foreign government 109 1 109 1 Total fixed maturity securities 4,584 90 356 14 4,940 104 Equity securities: Common stock 1 1 Preferred stock 15 1 15 1 Total equity securities 16 1 - - 16 1 Total $ 4,600 $ 91 $ 356 $ 14 $ 4,956 $ 105 December 31, 2016 Fixed maturity securities: Corporate and other bonds $ 2,615 $ 61 $ 254 $ 15 $ 2,869 $ 76 States, municipalities and political subdivisions 959 32 23 1 982 33 Asset-backed: Residential mortgage-backed 2,136 44 201 7 2,337 51 Commercial mortgage-backed 756 22 69 2 825 24 Other asset-backed 398 5 24 422 5 Total asset-backed 3,290 71 294 9 3,584 80 U.S. Treasury and obligations of government-sponsored enterprises 5 5 Foreign government 108 3 108 3 Total fixed maturity securities 6,977 167 571 25 7,548 192 Equity securities 12 13 4 25 4 Total $ 6,989 $ 167 $ 584 $ 29 $ 7,573 $ 196 |
Pretax Credit Loss Component Reflected in Retained Earnings on Fixed Maturity Securities | The following table presents the activity related to the pretax credit loss component reflected in Retained earnings on fixed maturity securities still held as of June 30, 2017 and 2016 for which a portion of an OTTI loss was recognized in Other comprehensive income. Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (In millions) Beginning balance of credit losses on fixed maturity securities $ 32 $ 48 $ 36 $ 53 Reductions for securities sold during the period (2 ) (7 ) (6 ) (12 ) Ending balance of credit losses on fixed maturity securities $ 30 $ 41 $ 30 $ 41 |
Available-for-Sale Fixed Maturity Securities by Contractual Maturity | The following table presents available-for-sale June 30, 2017 December 31, 2016 Cost or Estimated Cost or Estimated Amortized Fair Amortized Fair Cost Value Cost Value (In millions) Due in one year or less $ 1,590 $ 1,628 $ 1,779 $ 1,828 Due after one year through five years 7,732 8,098 7,566 7,955 Due after five years through ten years 15,754 16,404 15,892 16,332 Due after ten years 13,569 15,596 13,112 14,778 Total $ 38,645 $ 41,726 $ 38,349 $ 40,893 |
Summary of Aggregate Contractual or Notional Amounts and Gross Estimated Fair Values Related to Derivative Financial Instruments | A summary of the aggregate contractual or notional amounts and gross estimated fair values related to derivative financial instruments follows. The contractual or notional amounts for derivatives are used to calculate the exchange of contractual payments under the agreements and may not be representative of the potential for gain or loss on these instruments. Gross estimated fair values of derivative positions are currently presented in Equity securities, Receivables and Payable to brokers on the Consolidated Condensed Balance Sheets. June 30, 2017 December 31, 2016 Contractual/ Contractual/ Notional Estimated Fair Value Notional Estimated Fair Value Amount Asset (Liability) Amount Asset (Liability) (In millions) With hedge designation: Interest rate risk: Interest rate swaps $ 500 Without hedge designation: Equity markets: Options – purchased 221 $ 14 $ 223 $ 14 231 $ (8 ) 267 $ (8 ) Futures – short 243 225 1 Commodity futures – long 37 1 42 Embedded derivative on funds withheld liability 171 (1 ) 174 3 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are presented in the following tables: June 30, 2017 Level 1 Level 2 Level 3 Total (In millions) Fixed maturity securities: Corporate and other bonds $ 19,283 $ 100 $ 19,383 States, municipalities and political subdivisions 13,825 1 13,826 Asset-backed: Residential mortgage-backed 4,798 123 4,921 Commercial mortgage-backed 1,939 13 1,952 Other asset-backed 979 82 1,061 Total asset-backed 7,716 218 7,934 U.S. Treasury and obligations of government-sponsored enterprises $ 115 115 Foreign government 449 449 Redeemable preferred stock 19 19 Fixed maturities available-for-sale 134 41,273 319 41,726 Fixed maturities trading 334 5 339 Total fixed maturities $ 134 $ 41,607 $ 324 $ 42,065 Equity securities available-for-sale $ 99 $ 19 $ 118 Equity securities trading 488 1 489 Total equity securities $ 587 $ - $ 20 $ 607 Short term investments $ 3,858 $ 981 $ 4,839 Other invested assets 60 5 65 Receivables 1 1 Life settlement contracts $ 1 1 Payable to brokers (8 ) (8 ) December 31, 2016 Level 1 Level 2 Level 3 Total (In millions) Fixed maturity securities: Corporate and other bonds $ 18,828 $ 130 $ 18,958 States, municipalities and political subdivisions 13,239 1 13,240 Asset-backed: Residential mortgage-backed 4,944 129 5,073 Commercial mortgage-backed 2,027 13 2,040 Other asset-backed 968 57 1,025 Total asset-backed 7,939 199 8,138 U.S. Treasury and obligations of government-sponsored enterprises $ 93 93 Foreign government 445 445 Redeemable preferred stock 19 19 Fixed maturities available-for-sale 112 40,451 330 40,893 Fixed maturities trading 595 6 601 Total fixed maturities $ 112 $ 41,046 $ 336 $ 41,494 Equity securities available-for-sale $ 91 $ 19 $ 110 Equity securities trading 438 1 439 Total equity securities $ 529 $ - $ 20 $ 549 Short term investments $ 3,833 $ 853 $ 4,686 Other invested assets 55 5 60 Receivables 1 1 Life settlement contracts $ 58 58 Payable to brokers (44 ) (44 ) |
Reconciliations of Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs | The following tables present reconciliations for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2017 and 2016: Unrealized Gains (Losses) Net Realized Gains Recognized in (Losses) and Net Change Net Income in Unrealized Gains (Loss) on Level (Losses) 3 Assets and Included in Transfers Transfers Liabilities Balance, Net Income Included in into out of Balance, Held at 2017 April 1 (Loss) OCI Purchases Sales Settlements Level 3 Level 3 June 30 June 30 (In millions) Fixed maturity securities: Corporate and other bonds $ 121 $ (11) $ (10) $ 100 States, municipalities and political subdivisions 1 1 Asset-backed: Residential mortgage-backed 126 $ 1 $ 1 (5) 123 Commercial mortgage- backed 13 13 Other asset-backed 117 $ 13 (2) $ 24 (70) 82 Total asset-backed 256 1 1 13 $ - (7) 24 (70) 218 $ - Fixed maturities available-for-sale 378 1 1 13 (18) 24 (80) 319 Fixed maturities trading 5 5 (1) Total fixed maturities $ 383 $ 1 $ 1 $ 13 $ - $ (18) $ 24 $ (80) $ 324 $ (1) Equity securities available-for-sale $ 19 $ 1 $ (1) $ 19 Equity securities trading 1 1 Total equity securities $ 20 $ - $ 1 $ - $ (1) $ - $ - $ - $ 20 $ - Life settlement contracts $ 46 $ (45) $ 1 Unrealized Gains (Losses) Net Realized Gains Recognized in (Losses) and Net Change Net Income in Unrealized Gains (Loss) on Level (Losses) 3 Assets and Included in Transfers Transfers Liabilities Balance, Net Income Included in into out of Balance, Held at 2016 April 1 (Loss) OCI Purchases Sales Settlements Level 3 Level 3 June 30 June 30 (In millions) Fixed maturity securities: Corporate and other bonds $ 193 $ 1 $ 3 $ 94 $ (20) $ (7) $ (22) $ 242 States, municipalities and political subdivisions 2 2 Asset-backed: Residential mortgage-backed 128 1 (1) 10 (4) 134 Commercial mortgage- backed 27 (9) $ 3 (10) 11 Other asset-backed 50 2 35 (25) (1) (16) 45 Total asset-backed 205 1 1 45 (25) (14) 3 (26) 190 $ - Fixed maturities available-for-sale 400 2 4 139 (45) (21) 3 (48) 434 Fixed maturities trading 3 4 (1) 6 4 Total fixed maturities $ 403 $ 6 $ 4 $ 139 $ (46) $ (21) $ 3 $ (48) $ 440 $ 4 Equity securities available-for-sale $ 19 $ 19 Equity securities trading - $ 1 $ 1 2 $ 1 Total equity securities $ 19 $ 1 $ - $ 1 $ - $ - $ - $ - $ 21 $ 1 Life settlement contracts $ 72 $ 6 $ (11) $ 67 $ (3) Derivative financial instruments, net (2) $ 3 1 (3) Unrealized Gains (Losses) Net Realized Gains Recognized in (Losses) and Net Change Net Income in Unrealized Gains (Loss) on Level (Losses) 3 Assets and Included in Transfers Transfers Liabilities Balance, Net Income Included in into out of Balance, Held at 2017 January 1 (Loss) OCI Purchases Sales Settlements Level 3 Level 3 June 30 June 30 (In millions) Fixed maturity securities: Corporate and other bonds $ 130 $ 1 $ 5 $ (1) $ (25) $ (10) $ 100 States, municipalities and political subdivisions 1 1 Asset-backed: Residential mortgage-backed 129 $ 2 3 (11) 123 Commercial mortgage-backed 13 13 Other asset-backed 57 (1 ) 51 (2) $ 52 (75) 82 Total asset-backed 199 1 3 51 - (13) 52 (75) 218 $ - Fixed maturities available-for-sale 330 1 4 56 (1) (38) 52 (85) 319 Fixed maturities trading 6 (1 ) 5 (1) Total fixed maturities $ 336 $ - $ 4 $ 56 $ (1) $ (38) $ 52 $ (85) $ 324 $ (1) Equity securities available-for-sale $ 19 $ 2 $ 1 $ (3) $ 19 Equity securities trading 1 1 Total equity securities $ 20 $ - $ 2 $ 1 $ (3) $ - $ - $ - $ 20 $ - Life settlement contracts $ 58 $ 6 $ (58) $ (5) $ 1 Derivative financial instruments, net - 1 (1) - Unrealized Gains (Losses) Net Realized Gains Recognized in (Losses) and Net Change Net Income in Unrealized Gains (Loss) on Level (Losses) 3 Assets and Included in Transfers Transfers Liabilities Balance, Net Income Included in into out of Balance, Held at 2016 January 1 (Loss) OCI Purchases Sales Settlements Level 3 Level 3 June 30 June 30 (In millions) Fixed maturity securities: Corporate and other bonds $ 168 $ 7 $ 147 $ (36) $ (10) $ (34) $ 242 States, municipalities and political subdivisions 2 2 Asset-backed: Residential mortgage-backed 134 $ 2 (1) 10 (9) (2) 134 Commercial mortgage- backed 22 9 (9) $ 3 (14) 11 Other asset-backed 53 2 35 (25) (1) 2 (21) 45 Total asset-backed 209 2 1 54 (25) (19) 5 (37) 190 $ - Fixed maturities available-for-sale 379 2 8 201 (61) (29) 5 (71) 434 Fixed maturities trading 85 5 2 (86) 6 4 Total fixed maturities $ 464 $ 7 $ 8 $ 203 $ (147) $ (29) $ 5 $ (71) $ 440 $ 4 Equity securities available-for-sale $ 20 $ (1) $ 19 Equity securities trading 1 $ 1 $ 1 $ (1) 2 $ 1 Total equity securities $ 21 $ 1 $ (1) $ 1 $ (1) $ - $ - $ - $ 21 $ 1 Life settlement contracts $ 74 $ 10 $ (17) $ 67 $ (3) Derivative financial instruments, net 3 (3) $ (2) $ 3 1 (3) |
Quantitative Information about Significant Unobservable Inputs Utilized by Company in 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 measurement 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 unobservable inputs from these broker quotes is neither provided nor reasonably available to the Company. The valuation of life settlement contracts was based on the terms of the sale of the contracts to a third party; therefore the contracts are not included in the tables below. June 30, 2017 Estimated Fair Value Valuation Techniques Unobservable Inputs Range (Weighted Average) (In millions) Fixed maturity securities $ 125 Discounted cash flow Credit spread 2% – 40% (4%) December 31, 2016 Fixed maturity securities $ 106 Discounted cash flow Credit spread 2% – 40% (4%) |
Carrying Amount, Estimated Fair Value and Level of Fair Value Hierarchy of Company's Financial Assets and Liabilities | The carrying amount, estimated fair value and the level of the fair value hierarchy of the Company’s financial assets and liabilities which are not measured at fair value on the Consolidated Condensed Balance Sheets are presented in the following tables. The carrying amounts and estimated fair values of short term debt and long term debt exclude capital lease obligations. The carrying amounts reported on the Consolidated Condensed Balance Sheets for cash and short term investments not carried at fair value and certain other assets and liabilities approximate fair value due to the short term nature of these items. Carrying Estimated Fair Value June 30, 2017 Amount Level 1 Level 2 Level 3 Total (In millions) Assets: Other invested assets, primarily mortgage loans $ 646 $ 655 $ 655 Liabilities: Short term debt 190 $ 154 40 194 Long term debt 11,075 10,074 1,217 11,291 December 31, 2016 Assets: Other invested assets, primarily mortgage loans $ 591 $ 594 $ 594 Liabilities: Short term debt 107 $ 104 3 107 Long term debt 10,655 10,150 646 10,796 |
Claim and Claim Adjustment Ex23
Claim and Claim Adjustment Expense Reserves (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Insurance [Abstract] | |
Reconciliation of Claim and Claim Adjustment Expense Reserves | The following table presents a reconciliation between beginning and ending claim and claim adjustment expense reserves, including claim and claim adjustment expense reserves of non-core Six Months Ended June 30 2017 2016 (In millions) Reserves, beginning of year: Gross $ 22,343 $ 22,663 Ceded 4,094 4,087 Net reserves, beginning of year 18,249 18,576 Net incurred claim and claim adjustment expenses: Provision for insured events of current year 2,443 2,583 Decrease in provision for insured events of prior years (159 ) (198) Amortization of discount 93 93 Total net incurred (a) 2,377 2,478 Net payments attributable to: Current year events (266 ) (311) Prior year events (2,331 ) (2,185) Total net payments (2,597 ) (2,496) Foreign currency translation adjustment and other 70 46 Net reserves, end of period 18,099 18,604 Ceded reserves, end of period 4,080 4,371 Gross reserves, end of period $ 22,179 $ 22,975 (a) Total net incurred above does not agree to Insurance claims and policyholders’ benefits as reflected in the Consolidated Condensed Statements of Income due to amounts related to retroactive reinsurance deferred gain accounting, uncollectible reinsurance and loss deductible receivables and benefit expenses related to future policy benefits, which are not reflected in the table above. |
Net Prior Year Development | The following table and discussion present net prior year development: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (In millions) Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development $ (55 ) $ (98 ) $ (112 ) $ (150 ) Pretax (favorable) unfavorable premium development (8 ) (8 ) 17 (22 ) Total pretax (favorable) unfavorable net prior year development $ (63 ) $ (106 ) $ (95 ) $ (172 ) |
Details of the Net Prior Year Claim and Allocated Claim Adjustment Expense Reserve Development ("development") | The following table and discussion present details of the net prior year claim and allocated claim adjustment expense reserve development (“development”): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (In millions) Medical professional liability $ 3 $ (23 ) $ 4 $ (30 ) Other professional liability and management liability (37 ) (41 ) (69 ) (50 ) Commercial auto (20 ) (26 ) (35 ) General liability (1 ) (37 ) (1 ) (52 ) Workers’ compensation (46 ) 50 (46 ) 54 Other 26 (27 ) 26 (37 ) Total pretax (favorable) unfavorable development $ (55 ) $ (98 ) $ (112 ) $ (150 ) |
Schedule of 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 Condensed Statements of Income. Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (In millions) Net A&EP adverse development before consideration of LPT $ - $ - $ 60 $ 200 Retroactive reinsurance benefit recognized (3 ) (9 ) (43 ) (82 ) Pretax impact of A&EP reserve development and the LPT $ (3 ) $ (9 ) $ 17 $ 118 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income | The tables below present the changes in AOCI by component for the three and six months ended June 30, 2016 and 2017: Total Accumulated OTTI Unrealized Foreign Other Gains Gains (Losses) Cash Flow Pension Currency Comprehensive (Losses) on Investments Hedges Liability Translation Income (Loss) (In millions) Balance, April 1, 2016 $ 29 $ 554 $ (2 ) $ (643 ) $ (64 ) $ (126 ) Other comprehensive income (loss) before reclassifications, after tax of $1, $(164), $0, $0 and $0 (1 ) 322 (48 ) 273 Reclassification of (gains) losses from accumulated other comprehensive income, after tax of $0, $6, $0, $(4) and $0 (1 ) 5 4 Other comprehensive income (loss) (1 ) 321 - 5 (48 ) 277 Amounts attributable to noncontrolling interests (37 ) (1 ) 6 (32 ) Balance, June 30, 2016 $ 28 $ 838 $ (2 ) $ (639 ) $ (106 ) $ 119 Balance, April 1, 2017 $ 23 $ 636 $ (2 ) $ (638 ) $ (168 ) $ (149 ) Other comprehensive income (loss) before reclassifications, after tax of $1, $(63), $0, $0 and $0 (1 ) 108 42 149 Reclassification of (gains) losses from accumulated other comprehensive income, after tax of $(1), $15, $0, $(3) and $0 1 (31 ) 7 (23 ) Other comprehensive income - 77 - 7 42 126 Amounts attributable to noncontrolling interests (8 ) (1 ) (4 ) (13 ) Balance, June 30, 2017 $ 23 $ 705 $ (2 ) $ (632 ) $ (130 ) $ (36 ) Total Accumulated OTTI Unrealized Foreign Other Gains Gains (Losses) Cash Flow Pension Currency Comprehensive (Losses) on Investments Hedges Liability Translation Income (Loss) (In millions) Balance, January 1, 2016 $ 24 $ 347 $ (3 ) $ (649 ) $ (76 ) $ (357 ) Other comprehensive income (loss) before reclassifications, after tax of $(1), $(272), $0, $0 and $0 2 539 (34 ) 507 Reclassification of losses from accumulated other comprehensive income, after tax of $(1), $(1), $0, $(7) and $0 2 10 1 13 26 Other comprehensive income (loss) 4 549 1 13 (34 ) 533 Amounts attributable to noncontrolling interests (58 ) (3 ) 4 (57 ) Balance, June 30, 2016 $ 28 $ 838 $ (2 ) $ (639 ) $ (106 ) $ 119 Balance, January 1, 2017 $ 27 $ 576 $ (2 ) $ (646 ) $ (178 ) $ (223 ) Other comprehensive income (loss) before reclassifications, after tax of $0, $(110), $0, $0 and $0 (1 ) 193 (1 ) 53 244 Reclassification of (gains) losses from accumulated other comprehensive income, after tax of $1, $24, $0, $(7) and $0 (3 ) (49 ) 1 15 (36 ) Other comprehensive income (loss) (4 ) 144 - 15 53 208 Amounts attributable to noncontrolling interests (15 ) (1 ) (5 ) (21 ) Balance, June 30, 2017 $ 23 $ 705 $ (2 ) $ (632 ) $ (130 ) $ (36 ) |
Benefit Plans (Tables)
Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | The following table presents the components of net periodic benefit cost for the plans: Pension Benefits Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (In millions) Service cost $ 2 $ 2 $ 4 $ 4 Interest cost 29 32 59 64 Expected return on plan assets (43) (44) (86) (88) Amortization of unrecognized net loss 11 12 22 23 Settlement charge 1 1 3 2 Net periodic benefit cost $ - $ 3 $ 2 $ 5 Other Postretirement Benefits Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (In millions) Interest cost $ 1 $ 1 Expected return on plan assets $ (1) $ (1) (2) (2) Amortization of unrecognized prior service benefit (1) (1) (2) Net periodic benefit cost $ (1) $ (2) $ (2) $ (3) |
Segments (Tables)
Segments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Consolidating Statement of Income by Segment | Statements of Income by segment are presented in the following tables. Three Months Ended June 30, 2017 CNA Financial Diamond Offshore Boardwalk Pipeline Loews Hotels & Co Corporate Total (In millions) Revenues: Insurance premiums $ 1,734 $ 1,734 Net investment income 475 $ 1 $ 2 478 Investment gains 43 43 Contract drilling revenues 392 392 Other revenues 114 6 $ 318 $ 181 93 712 Total 2,366 399 318 181 95 3,359 Expenses: Insurance claims and policyholders’ benefits 1,280 1,280 Amortization of deferred acquisition costs 312 312 Contract drilling expenses 196 196 Other operating expenses 364 185 251 155 130 1,085 Interest 40 27 44 6 22 139 Total 1,996 408 295 161 152 3,012 Income (loss) before income tax 370 (9 ) 23 20 (57 ) 347 Income tax (expense) benefit (98 ) 23 (5 ) (10 ) 21 (69) Net income (loss) 272 14 18 10 (36 ) 278 Amounts attributable to noncontrolling interests (28 ) (7 ) (12 ) (47) Net income (loss) attributable to Loews Corporation $ 244 $ 7 $ 6 $ 10 $ (36 ) $ 231 Three Months Ended June 30, 2016 CNA Diamond Boardwalk Loews Corporate Total (In millions) Revenues: Insurance premiums $ 1,730 $ 1,730 Net investment income 502 $ 85 587 Investment gains (losses) 13 $ (12 ) 1 Contract drilling revenues 357 357 Other revenues 103 33 $ 308 $ 189 (1 ) 632 Total 2,348 378 308 189 84 3,307 Expenses: Insurance claims and policyholders’ benefits 1,339 1,339 Amortization of deferred acquisition costs 305 305 Contract drilling expenses 198 198 Other operating expenses 376 825 198 180 32 1,611 Interest 38 24 45 5 18 130 Total 2,058 1,047 243 185 50 3,583 Income (loss) before income tax 290 (669 ) 65 4 34 (276 ) Income tax (expense) benefit (80 ) 99 (16 ) (3 ) (12 ) (12 ) Net income (loss) 210 (570 ) 49 1 22 (288 ) Amounts attributable to noncontrolling interests (21 ) 276 (32 ) 223 Net income (loss) attributable to Loews Corporation $ 189 $ (294 ) $ 17 $ 1 $ 22 $ (65 ) Six Months Ended June 30, 2017 CNA Diamond Boardwalk Loews Corporate Total (In millions) Revenues: Insurance premiums $ 3,379 $ 3,379 Net investment income 1,020 $ 1 $ 61 1,082 Investment gains 77 77 Contract drilling revenues 756 756 Other revenues 219 19 $ 686 $ 348 93 1,365 Total 4,695 776 686 348 154 6,659 Expenses: Insurance claims and policyholders’ benefits 2,573 2,573 Amortization of deferred acquisition costs 617 617 Contract drilling expenses 400 400 Other operating expenses 707 305 455 296 168 1,931 Interest 83 55 90 13 40 281 Total 3,980 760 545 309 208 5,802 Income (loss) before income tax 715 16 141 39 (54 ) 857 Income tax (expense) benefit (182 ) 21 (28 ) (19 ) 20 (188 ) Net income (loss) 533 37 113 20 (34 ) 669 Amounts attributable to noncontrolling interests (55 ) (18 ) (70 ) (143 ) Net income (loss) attributable to Loews Corporation $ 478 $ 19 $ 43 $ 20 $ (34 ) $ 526 Six Months Ended June 30, 2016 CNA Diamond Boardwalk Loews Corporate Total (In millions) Revenues: Insurance premiums $ 3,429 $ 3,429 Net investment income 937 $ 72 1,009 Investment losses (15 ) $ (12 ) (27 ) Contract drilling revenues 801 801 Other revenues 200 60 $ 655 $ 352 1 1,268 Total 4,551 849 655 352 73 6,480 Expenses: Insurance claims and policyholders’ benefits 2,747 2,747 Amortization of deferred acquisition costs 612 612 Contract drilling expenses 411 411 Other operating expenses 756 974 403 328 57 2,518 Interest 88 50 88 11 36 273 Total 4,203 1,435 491 339 93 6,561 Income (loss) before income tax 348 (586 ) 164 13 (20 ) (81 ) Income tax (expense) benefit (71 ) 100 (35 ) (9 ) 7 (8 ) Net income (loss) 277 (486 ) 129 4 (13 ) (89 ) Amounts attributable to noncontrolling interests (28 ) 235 (81 ) 126 Net income (loss) attributable to Loews Corporation $ 249 $ (251 ) $ 48 $ 4 $ (13 ) $ 37 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Subsidiary or Equity Method Investee [Line Items] | ||||
Shares excluded from diluted EPS calculation | 0.6 | 4.7 | 0.6 | 5.1 |
CNA Financial [Member] | ||||
Subsidiary or Equity Method Investee [Line Items] | ||||
Subsidiary ownership percentage | 90.00% | |||
Diamond Offshore Drilling, Inc. [Member] | ||||
Subsidiary or Equity Method Investee [Line Items] | ||||
Subsidiary ownership percentage | 53.00% | |||
Boardwalk Pipeline Partners, LP [Member] | ||||
Subsidiary or Equity Method Investee [Line Items] | ||||
Subsidiary ownership percentage | 51.00% | |||
Consolidated Container Company [Member] | ||||
Subsidiary or Equity Method Investee [Line Items] | ||||
Subsidiary ownership percentage | 99.00% |
Acquisition of Consolidated C28
Acquisition of Consolidated Container Company - Additional Information (Detail) - USD ($) | May 22, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||||
Revenue | $ 3,359,000,000 | $ 3,307,000,000 | $ 6,659,000,000 | $ 6,480,000,000 | ||
Corporate [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Revenue | 95,000,000 | $ 84,000,000 | 154,000,000 | $ 73,000,000 | ||
CCC Acquisition Holdings, Inc. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Payments for acquisition | $ 1,200,000,000 | |||||
Cash payments funding acquisition | 620,000,000 | |||||
Goodwill deductible for tax purposes | 94,000,000 | $ 94,000,000 | ||||
CCC Acquisition Holdings, Inc. [Member] | Customer Relationships [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Useful life of intangible assets | 21 years | |||||
CCC Acquisition Holdings, Inc. [Member] | Trade Name [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Useful life of intangible assets | 10 years | |||||
Consolidated Container Company [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Revenue | $ 788,000,000 | |||||
Debt financing proceeds funding acquisition | $ 600,000,000 | |||||
Consolidated Container Company [Member] | Corporate [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Revenue | 91,000,000 | 91,000,000 | ||||
Consolidated Container Company [Member] | Interest Rate Swaps [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Interest rate swaps for notional amount | $ 500,000,000 | $ 500,000,000 | ||||
Percentage of interest on hedged portion of term loan | 5.60% | 5.60% | ||||
Consolidated Container Company [Member] | ABL Facility [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Borrowings outstanding amount | $ 0 | $ 0 | ||||
Consolidated Container Company [Member] | Credit Agreement [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Term loan | $ 605,000,000 | $ 605,000,000 | ||||
Term loan maturity date | May 22, 2024 | |||||
Annual principal amortization of loan | 1.00% | 1.00% | ||||
Debt issuance costs | $ 19,000,000 | $ 19,000,000 | ||||
Consolidated Container Company [Member] | Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Libor applicable margin | 3.50% | 3.50% | ||||
Consolidated Container Company [Member] | Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Interest floor rate | 1.00% | 1.00% | ||||
Consolidated Container Company [Member] | Credit Agreement [Member] | ABL Facility [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Credit agreement period | 5 years | |||||
Line of credit borrowing amount | $ 125,000,000 | $ 125,000,000 |
Acquisition of Consolidated C29
Acquisition of Consolidated Container Company - Summary of Preliminary Allocation of Purchase Price to Tangible and Identifiable Intangible Assets Acquired and Liabilities Assumed (Detail) - CCC Acquisition Holdings, Inc. [Member] $ in Millions | Jun. 30, 2017USD ($) |
Business Acquisition, Contingent Consideration [Line Items] | |
Cash | $ 5 |
Property, plant and equipment | 394 |
Goodwill | 299 |
Other assets: | |
Inventory | 57 |
Other | 122 |
Deferred income taxes | (17) |
Other liabilities: | |
Accounts payable | (53) |
Pension liability | (27) |
Other | (53) |
Total | 1,227 |
Customer Relationships [Member] | |
Other assets: | |
Intangibles | 457 |
Trade Name [Member] | |
Other assets: | |
Intangibles | $ 43 |
Investments - Net Investment In
Investments - Net Investment Income and Investment Gains (Losses) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net Investment Income [Line Items] | ||||
Total investment income | $ 493 | $ 602 | $ 1,111 | $ 1,038 |
Investment expenses | (15) | (15) | (29) | (29) |
Investment gains (losses) | 43 | 1 | 77 | (27) |
Net investment income | 478 | 587 | 1,082 | 1,009 |
Fixed Maturity Securities [Member] | ||||
Net Investment Income [Line Items] | ||||
Total investment income | 457 | 449 | 912 | 895 |
Investment gains (losses) | 44 | 4 | 76 | (13) |
Equity Securities [Member] | ||||
Net Investment Income [Line Items] | ||||
Total investment income | 2 | 4 | 3 | 7 |
Investment gains (losses) | 3 | (2) | ||
Derivative Instruments [Member] | ||||
Net Investment Income [Line Items] | ||||
Investment gains (losses) | (3) | (6) | (2) | (13) |
Short Term Investments [Member] | ||||
Net Investment Income [Line Items] | ||||
Total investment income | 4 | 2 | 8 | 5 |
Investment gains (losses) | 2 | 3 | 1 | |
Limited Partnership Investments [Member] | ||||
Net Investment Income [Line Items] | ||||
Total investment income | 23 | 47 | 139 | 7 |
Income (Loss) from Trading Portfolio [Member] | ||||
Net Investment Income [Line Items] | ||||
Total investment income | (1) | 87 | 33 | 102 |
Other [Member] | ||||
Net Investment Income [Line Items] | ||||
Total investment income | $ 8 | $ 13 | $ 16 | $ 22 |
Investments - Net Investment 31
Investments - Net Investment Income and Investment Gains (Losses) (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net Investment Income [Line Items] | ||||
Net unrealized gains (losses) on trading securities | $ (6) | $ 60 | $ 19 | $ 81 |
Fixed Maturity Securities [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross realized gains on available-for-sale securities | 57 | 44 | 106 | 89 |
Gross realized losses on available-for-sale securities | $ 13 | $ 37 | $ 30 | $ 104 |
Investments - Components of Oth
Investments - Components of Other-than-Temporary Impairment Losses Recognized in Earnings by Asset Type (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Net OTTI losses recognized in earnings | $ 2 | $ 15 | $ 4 | $ 38 |
Corporate and Other Bonds [Member] | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Net OTTI losses recognized in earnings | 2 | 13 | 4 | 29 |
Residential Mortgage-Backed [Member] | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Net OTTI losses recognized in earnings | 1 | 1 | ||
Other Asset-Backed [Member] | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Net OTTI losses recognized in earnings | 1 | 3 | ||
Total Asset-Backed [Member] | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Net OTTI losses recognized in earnings | 2 | 4 | ||
Total Fixed Maturities Available-for-Sale [Member] | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Net OTTI losses recognized in earnings | $ 2 | $ 15 | $ 4 | 33 |
Common Stock [Member] | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Net OTTI losses recognized in earnings | $ 5 |
Investments - Amortized Cost an
Investments - Amortized Cost and Fair Values of Securities (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | $ 39,585 | $ 39,518 |
Gross Unrealized Gains | 3,278 | 2,807 |
Gross Unrealized Losses | 191 | 282 |
Estimated Fair Value | 42,672 | 42,043 |
Unrealized OTTI Losses (Gains) | (40) | (45) |
Fixed Maturity Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 38,982 | 38,947 |
Gross Unrealized Gains | 3,188 | 2,739 |
Gross Unrealized Losses | 105 | 192 |
Estimated Fair Value | 42,065 | 41,494 |
Unrealized OTTI Losses (Gains) | (40) | (45) |
Corporate and Other Bonds [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 17,823 | 17,711 |
Gross Unrealized Gains | 1,589 | 1,323 |
Gross Unrealized Losses | 29 | 76 |
Estimated Fair Value | 19,383 | 18,958 |
Unrealized OTTI Losses (Gains) | (1) | |
States, Municipalities and Political Subdivisions [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 12,461 | 12,060 |
Gross Unrealized Gains | 1,380 | 1,213 |
Gross Unrealized Losses | 15 | 33 |
Estimated Fair Value | 13,826 | 13,240 |
Unrealized OTTI Losses (Gains) | (13) | (16) |
Residential Mortgage-Backed [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 4,835 | 5,004 |
Gross Unrealized Gains | 124 | 120 |
Gross Unrealized Losses | 38 | 51 |
Estimated Fair Value | 4,921 | 5,073 |
Unrealized OTTI Losses (Gains) | (27) | (28) |
Commercial Mortgage-Backed [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 1,907 | 2,016 |
Gross Unrealized Gains | 59 | 48 |
Gross Unrealized Losses | 14 | 24 |
Estimated Fair Value | 1,952 | 2,040 |
Other Asset-Backed [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 1,050 | 1,022 |
Gross Unrealized Gains | 16 | 8 |
Gross Unrealized Losses | 5 | 5 |
Estimated Fair Value | 1,061 | 1,025 |
Total Asset-Backed [Member] | Fixed Maturity Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 7,792 | 8,042 |
Gross Unrealized Gains | 199 | 176 |
Gross Unrealized Losses | 57 | 80 |
Estimated Fair Value | 7,934 | 8,138 |
Unrealized OTTI Losses (Gains) | (27) | (28) |
U.S. Treasury and Obligations of Government-Sponsored Enterprises [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 113 | 83 |
Gross Unrealized Gains | 4 | 10 |
Gross Unrealized Losses | 2 | |
Estimated Fair Value | 115 | 93 |
Foreign Government [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 438 | 435 |
Gross Unrealized Gains | 12 | 13 |
Gross Unrealized Losses | 1 | 3 |
Estimated Fair Value | 449 | 445 |
Redeemable Preferred Stock [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 18 | 18 |
Gross Unrealized Gains | 1 | 1 |
Estimated Fair Value | 19 | 19 |
Total Fixed Maturities Available-for-Sale [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 38,645 | 38,349 |
Gross Unrealized Gains | 3,185 | 2,736 |
Gross Unrealized Losses | 104 | 192 |
Estimated Fair Value | 41,726 | 40,893 |
Unrealized OTTI Losses (Gains) | (40) | (45) |
Fixed Maturities Trading [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 337 | 598 |
Gross Unrealized Gains | 3 | 3 |
Gross Unrealized Losses | 1 | |
Estimated Fair Value | 339 | 601 |
Common Stock [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 17 | 13 |
Gross Unrealized Gains | 5 | 6 |
Estimated Fair Value | 22 | 19 |
Preferred Stock [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 91 | 93 |
Gross Unrealized Gains | 6 | 2 |
Gross Unrealized Losses | 1 | 4 |
Estimated Fair Value | 96 | 91 |
Equity Securities Available-for-Sale [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 108 | 106 |
Gross Unrealized Gains | 11 | 8 |
Gross Unrealized Losses | 1 | 4 |
Estimated Fair Value | 118 | 110 |
Equity Securities Trading [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 495 | 465 |
Gross Unrealized Gains | 79 | 60 |
Gross Unrealized Losses | 85 | 86 |
Estimated Fair Value | 489 | 439 |
Equity Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or Amortized Cost | 603 | 571 |
Gross Unrealized Gains | 90 | 68 |
Gross Unrealized Losses | 86 | 90 |
Estimated Fair Value | $ 607 | $ 549 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Investments, Debt and Equity Securities [Abstract] | ||
Net unrealized gains on investments included in "AOCI" | $ 1,100,000,000 | $ 909,000,000 |
Additional other than temporary impairment losses | $ 0 |
Investments - Securities Availa
Investments - Securities Available-for-Sale in Gross Unrealized Loss Position (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Corporate and Other Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | $ 1,314 | $ 2,615 |
Gross Unrealized Losses, Less than 12 Months | 26 | 61 |
Estimated Fair Value, 12 Months or Longer | 52 | 254 |
Gross Unrealized Losses, 12 Months or Longer | 3 | 15 |
Total Estimated Fair Value | 1,366 | 2,869 |
Total Gross Unrealized Losses | 29 | 76 |
States, Municipalities and Political Subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 742 | 959 |
Gross Unrealized Losses, Less than 12 Months | 15 | 32 |
Estimated Fair Value, 12 Months or Longer | 24 | 23 |
Gross Unrealized Losses, 12 Months or Longer | 1 | |
Total Estimated Fair Value | 766 | 982 |
Total Gross Unrealized Losses | 15 | 33 |
Residential Mortgage-Backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 1,722 | 2,136 |
Gross Unrealized Losses, Less than 12 Months | 34 | 44 |
Estimated Fair Value, 12 Months or Longer | 141 | 201 |
Gross Unrealized Losses, 12 Months or Longer | 4 | 7 |
Total Estimated Fair Value | 1,863 | 2,337 |
Total Gross Unrealized Losses | 38 | 51 |
Commercial Mortgage-Backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 473 | 756 |
Gross Unrealized Losses, Less than 12 Months | 8 | 22 |
Estimated Fair Value, 12 Months or Longer | 125 | 69 |
Gross Unrealized Losses, 12 Months or Longer | 6 | 2 |
Total Estimated Fair Value | 598 | 825 |
Total Gross Unrealized Losses | 14 | 24 |
Other Asset-Backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 159 | 398 |
Gross Unrealized Losses, Less than 12 Months | 4 | 5 |
Estimated Fair Value, 12 Months or Longer | 14 | 24 |
Gross Unrealized Losses, 12 Months or Longer | 1 | |
Total Estimated Fair Value | 173 | 422 |
Total Gross Unrealized Losses | 5 | 5 |
Total Asset-Backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 2,354 | 3,290 |
Gross Unrealized Losses, Less than 12 Months | 46 | 71 |
Estimated Fair Value, 12 Months or Longer | 280 | 294 |
Gross Unrealized Losses, 12 Months or Longer | 11 | 9 |
Total Estimated Fair Value | 2,634 | 3,584 |
Total Gross Unrealized Losses | 57 | 80 |
U.S. Treasury and Obligations of Government-Sponsored Enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 65 | 5 |
Gross Unrealized Losses, Less than 12 Months | 2 | |
Total Estimated Fair Value | 65 | 5 |
Total Gross Unrealized Losses | 2 | |
Foreign Government [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 109 | 108 |
Gross Unrealized Losses, Less than 12 Months | 1 | 3 |
Total Estimated Fair Value | 109 | 108 |
Total Gross Unrealized Losses | 1 | 3 |
Total Fixed Maturities Available-for-Sale [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 4,584 | 6,977 |
Gross Unrealized Losses, Less than 12 Months | 90 | 167 |
Estimated Fair Value, 12 Months or Longer | 356 | 571 |
Gross Unrealized Losses, 12 Months or Longer | 14 | 25 |
Total Estimated Fair Value | 4,940 | 7,548 |
Total Gross Unrealized Losses | 104 | 192 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 16 | 12 |
Gross Unrealized Losses, Less than 12 Months | 1 | |
Estimated Fair Value, 12 Months or Longer | 13 | |
Gross Unrealized Losses, 12 Months or Longer | 4 | |
Total Estimated Fair Value | 16 | 25 |
Total Gross Unrealized Losses | 1 | 4 |
Fixed Maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 4,600 | 6,989 |
Gross Unrealized Losses, Less than 12 Months | 91 | 167 |
Estimated Fair Value, 12 Months or Longer | 356 | 584 |
Gross Unrealized Losses, 12 Months or Longer | 14 | 29 |
Total Estimated Fair Value | 4,956 | 7,573 |
Total Gross Unrealized Losses | 105 | $ 196 |
Common Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 1 | |
Total Estimated Fair Value | 1 | |
Preferred Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 15 | |
Gross Unrealized Losses, Less than 12 Months | 1 | |
Total Estimated Fair Value | 15 | |
Total Gross Unrealized Losses | $ 1 |
Investments - Pretax Credit Los
Investments - Pretax Credit Loss Component Reflected in Retained Earnings on Fixed Maturity Securities (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Beginning balance of credit losses on fixed maturity securities | $ 32 | $ 48 | $ 36 | $ 53 |
Reductions for securities sold during the period | (2) | (7) | (6) | (12) |
Ending balance of credit losses on fixed maturity securities | $ 30 | $ 41 | $ 30 | $ 41 |
Investments - Available-for-Sal
Investments - Available-for-Sale Fixed Maturity Securities by Contractual Maturity (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Investments, Debt and Equity Securities [Abstract] | ||
Cost or Amortized Cost, Due in one year or less | $ 1,590 | $ 1,779 |
Cost or Amortized Cost, Due after one year through five years | 7,732 | 7,566 |
Cost or Amortized Cost, Due after five years through ten years | 15,754 | 15,892 |
Cost or Amortized Cost, Due after ten years | 13,569 | 13,112 |
Cost or Amortized Cost, Total | 38,645 | 38,349 |
Estimated Fair Value, Due in one year or less | 1,628 | 1,828 |
Estimated Fair Value, Due after one year through five years | 8,098 | 7,955 |
Estimated Fair Value, Due after five years through ten years | 16,404 | 16,332 |
Estimated Fair Value, Due after ten years | 15,596 | 14,778 |
Estimated Fair Value, Total | $ 41,726 | $ 40,893 |
Investments - Summary of Aggreg
Investments - Summary of Aggregate Contractual or Notional Amounts and Gross Estimated Fair Values Related to Derivative Financial Instruments (Detail) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Embedded Derivative on Funds Withheld Liability [Member] | ||
Derivative [Line Items] | ||
Contractual/Notional Amount | $ 171,000,000 | $ 174,000,000 |
Estimated Fair Value, Asset | 3,000,000 | |
Estimated Fair Value, (Liability) | (1,000,000) | |
With Hedge Designation [Member] | Interest Rate Swaps [Member] | ||
Derivative [Line Items] | ||
Contractual/Notional Amount | 500,000,000 | |
Without Hedge Designation [Member] | Equity Markets, Options - Purchased [Member] | ||
Derivative [Line Items] | ||
Contractual/Notional Amount | 221,000,000 | 223,000,000 |
Estimated Fair Value, Asset | 14,000,000 | 14,000,000 |
Without Hedge Designation [Member] | Equity Markets, Options - Written [Member] | ||
Derivative [Line Items] | ||
Contractual/Notional Amount | 231,000,000 | 267,000,000 |
Estimated Fair Value, (Liability) | (8,000,000) | (8,000,000) |
Without Hedge Designation [Member] | Equity Futures [Member] | Short [Member] | ||
Derivative [Line Items] | ||
Contractual/Notional Amount | 243,000,000 | 225,000,000 |
Estimated Fair Value, Asset | 1,000,000 | |
Without Hedge Designation [Member] | Commodity Futures [Member] | Long [Member] | ||
Derivative [Line Items] | ||
Contractual/Notional Amount | 37,000,000 | $ 42,000,000 |
Estimated Fair Value, Asset | $ 1,000,000 |
Fair Value - Assets and Liabili
Fair Value - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Payable to Brokers [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of liabilities, measured on a recurring basis | $ (8) | $ (44) |
Corporate and Other Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 19,383 | 18,958 |
States, Municipalities and Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 13,826 | 13,240 |
Residential Mortgage-Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 4,921 | 5,073 |
Commercial Mortgage-Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 1,952 | 2,040 |
Other Asset-Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 1,061 | 1,025 |
Total Asset-Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 7,934 | 8,138 |
U.S. Treasury and Obligations of Government-Sponsored Enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 115 | 93 |
Foreign Government [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 449 | 445 |
Redeemable Preferred Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 19 | 19 |
Total Fixed Maturities Available-for-Sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 41,726 | 40,893 |
Fixed Maturities Trading [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 339 | 601 |
Fixed Maturity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 42,065 | 41,494 |
Equity Securities Available-for-Sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 118 | 110 |
Equity Securities Trading [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 489 | 439 |
Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 607 | 549 |
Other Invested Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 65 | 60 |
Receivables [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 1 | 1 |
Life Settlement Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 1 | 58 |
Short Term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 4,839 | 4,686 |
Level 1 [Member] | Payable to Brokers [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of liabilities, measured on a recurring basis | (8) | (44) |
Level 1 [Member] | U.S. Treasury and Obligations of Government-Sponsored Enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 115 | 93 |
Level 1 [Member] | Redeemable Preferred Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 19 | 19 |
Level 1 [Member] | Total Fixed Maturities Available-for-Sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 134 | 112 |
Level 1 [Member] | Fixed Maturity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 134 | 112 |
Level 1 [Member] | Equity Securities Available-for-Sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 99 | 91 |
Level 1 [Member] | Equity Securities Trading [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 488 | 438 |
Level 1 [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 587 | 529 |
Level 1 [Member] | Other Invested Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 60 | 55 |
Level 1 [Member] | Receivables [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 1 | 1 |
Level 1 [Member] | Short Term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 3,858 | 3,833 |
Level 2 [Member] | Corporate and Other Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 19,283 | 18,828 |
Level 2 [Member] | States, Municipalities and Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 13,825 | 13,239 |
Level 2 [Member] | Residential Mortgage-Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 4,798 | 4,944 |
Level 2 [Member] | Commercial Mortgage-Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 1,939 | 2,027 |
Level 2 [Member] | Other Asset-Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 979 | 968 |
Level 2 [Member] | Total Asset-Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 7,716 | 7,939 |
Level 2 [Member] | Foreign Government [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 449 | 445 |
Level 2 [Member] | Total Fixed Maturities Available-for-Sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 41,273 | 40,451 |
Level 2 [Member] | Fixed Maturities Trading [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 334 | 595 |
Level 2 [Member] | Fixed Maturity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 41,607 | 41,046 |
Level 2 [Member] | Other Invested Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 5 | 5 |
Level 2 [Member] | Short Term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 981 | 853 |
Level 3 [Member] | Corporate and Other Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 100 | 130 |
Level 3 [Member] | States, Municipalities and Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 1 | 1 |
Level 3 [Member] | Residential Mortgage-Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 123 | 129 |
Level 3 [Member] | Commercial Mortgage-Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 13 | 13 |
Level 3 [Member] | Other Asset-Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 82 | 57 |
Level 3 [Member] | Total Asset-Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 218 | 199 |
Level 3 [Member] | Total Fixed Maturities Available-for-Sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 319 | 330 |
Level 3 [Member] | Fixed Maturities Trading [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 5 | 6 |
Level 3 [Member] | Fixed Maturity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 324 | 336 |
Level 3 [Member] | Equity Securities Available-for-Sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 19 | 19 |
Level 3 [Member] | Equity Securities Trading [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 1 | 1 |
Level 3 [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 20 | 20 |
Level 3 [Member] | Life Settlement Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | $ 1 | $ 58 |
Fair Value - Reconciliations of
Fair Value - Reconciliations of Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Derivative Instruments [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Derivative financial instruments, net, Beginning balance | $ 3 | |||
Derivative financial instruments, net, Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in Net Income (Loss) | $ (2) | $ 1 | (3) | |
Derivative financial instruments, net, Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in OCI | 0 | 0 | 0 | |
Derivative financial instruments, net, Purchases | 0 | 0 | 0 | |
Derivative financial instruments, net, Sales | (1) | (2) | ||
Derivative financial instruments, net, Settlements | 0 | 0 | 0 | |
Derivative financial instruments, net, Transfers into Level 3 | 3 | 3 | ||
Derivative financial instruments, net, Transfers out of Level 3 | 0 | 0 | 0 | |
Derivative financial instruments, net, Ending balance | 1 | 1 | ||
Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at June 30 | (3) | (3) | ||
Corporate and Other Bonds [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | $ 121 | 193 | 130 | 168 |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in Net Income (Loss) | 1 | |||
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in OCI | 3 | 1 | 7 | |
Purchases | 94 | 5 | 147 | |
Sales | (20) | (1) | (36) | |
Settlements | (11) | (7) | (25) | (10) |
Transfers out of Level 3 | (10) | (22) | (10) | (34) |
Ending balance | 100 | 242 | 100 | 242 |
States, Municipalities and Political Subdivisions [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 1 | 2 | 1 | 2 |
Ending balance | 1 | 2 | 1 | 2 |
Residential Mortgage-Backed [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 126 | 128 | 129 | 134 |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in Net Income (Loss) | 1 | 1 | 2 | 2 |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in OCI | 1 | (1) | 3 | (1) |
Purchases | 10 | 10 | ||
Settlements | (5) | (4) | (11) | (9) |
Transfers out of Level 3 | (2) | |||
Ending balance | 123 | 134 | 123 | 134 |
Commercial Mortgage-Backed [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 13 | 27 | 13 | 22 |
Purchases | 9 | |||
Settlements | (9) | (9) | ||
Transfers into Level 3 | 3 | 3 | ||
Transfers out of Level 3 | (10) | (14) | ||
Ending balance | 13 | 11 | 13 | 11 |
Other Asset-Backed [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 117 | 50 | 57 | 53 |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in Net Income (Loss) | (1) | |||
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in OCI | 2 | 2 | ||
Purchases | 13 | 35 | 51 | 35 |
Sales | (25) | (25) | ||
Settlements | (2) | (1) | (2) | (1) |
Transfers into Level 3 | 24 | 52 | 2 | |
Transfers out of Level 3 | (70) | (16) | (75) | (21) |
Ending balance | 82 | 45 | 82 | 45 |
Total Asset-Backed [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 256 | 205 | 199 | 209 |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in Net Income (Loss) | 1 | 1 | 1 | 2 |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in OCI | 1 | 1 | 3 | 1 |
Purchases | 13 | 45 | 51 | 54 |
Sales | (25) | (25) | ||
Settlements | (7) | (14) | (13) | (19) |
Transfers into Level 3 | 24 | 3 | 52 | 5 |
Transfers out of Level 3 | (70) | (26) | (75) | (37) |
Ending balance | 218 | 190 | 218 | 190 |
Total Fixed Maturities Available-for-Sale [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 378 | 400 | 330 | 379 |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in Net Income (Loss) | 1 | 2 | 1 | 2 |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in OCI | 1 | 4 | 4 | 8 |
Purchases | 13 | 139 | 56 | 201 |
Sales | (45) | (1) | (61) | |
Settlements | (18) | (21) | (38) | (29) |
Transfers into Level 3 | 24 | 3 | 52 | 5 |
Transfers out of Level 3 | (80) | (48) | (85) | (71) |
Ending balance | 319 | 434 | 319 | 434 |
Fixed Maturities Trading [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 5 | 3 | 6 | 85 |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in Net Income (Loss) | 4 | (1) | 5 | |
Purchases | 2 | |||
Sales | (1) | (86) | ||
Ending balance | 5 | 6 | 5 | 6 |
Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at June 30 | (1) | 4 | (1) | 4 |
Fixed Maturity Securities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 383 | 403 | 336 | 464 |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in Net Income (Loss) | 1 | 6 | 7 | |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in OCI | 1 | 4 | 4 | 8 |
Purchases | 13 | 139 | 56 | 203 |
Sales | (46) | (1) | (147) | |
Settlements | (18) | (21) | (38) | (29) |
Transfers into Level 3 | 24 | 3 | 52 | 5 |
Transfers out of Level 3 | (80) | (48) | (85) | (71) |
Ending balance | 324 | 440 | 324 | 440 |
Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at June 30 | (1) | 4 | (1) | 4 |
Equity Securities Available-for-Sale [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 19 | 19 | 19 | 20 |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in OCI | 1 | 2 | (1) | |
Purchases | 1 | |||
Sales | (1) | (3) | ||
Ending balance | 19 | 19 | 19 | 19 |
Equity Securities Trading [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 1 | 1 | 1 | |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in Net Income (Loss) | 1 | 1 | ||
Purchases | 1 | 1 | ||
Sales | (1) | |||
Ending balance | 1 | 2 | 1 | 2 |
Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at June 30 | 1 | 1 | ||
Equity Securities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 20 | 19 | 20 | 21 |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in Net Income (Loss) | 1 | 1 | ||
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in OCI | 1 | 2 | (1) | |
Purchases | 1 | 1 | 1 | |
Sales | (1) | (3) | (1) | |
Ending balance | 20 | 21 | 20 | 21 |
Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at June 30 | 1 | 1 | ||
Life Settlement Contracts [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 46 | 72 | 58 | 74 |
Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses), Included in Net Income (Loss) | 6 | 6 | 10 | |
Sales | (45) | (58) | ||
Settlements | (11) | (5) | (17) | |
Ending balance | $ 1 | 67 | $ 1 | 67 |
Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at June 30 | $ (3) | $ (3) |
Fair Value - Additional Informa
Fair Value - Additional Information (Detail) - USD ($) | 6 Months Ended | ||
Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers out of Level 1 to Level 2, Assets | $ 0 | $ 0 | |
CNA Financial [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Notes receivable maturity period | 3 years | ||
Escrow amount | $ 1,000,000 | ||
Note receivable | 45,000,000 | ||
Investments in life settlement contracts | $ 1,000,000 | $ 58,000,000 |
Fair Value - Quantitative Infor
Fair Value - Quantitative Information about Significant Unobservable Inputs Utilized by Company in Fair Value Measurements of Level 3 Assets (Detail) - Fixed Maturity Securities [Member] - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Discounted Cash Flow [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Estimated Fair Value | $ 125 | $ 106 |
Valuation Techniques | Discounted cash flow | |
Minimum [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Credit spread adjustment | 2.00% | 2.00% |
Maximum [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Credit spread adjustment | 40.00% | 40.00% |
Weighted Average [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Credit spread adjustment | 4.00% | 4.00% |
Fair Value - Carrying Amount, E
Fair Value - Carrying Amount, Estimated Fair Value and Level of Fair Value Hierarchy of Company's Financial Assets and Liabilities (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Estimate Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other invested assets, primarily mortgage loans | $ 655 | $ 594 |
Short term debt | 194 | 107 |
Long term debt | 11,291 | 10,796 |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other invested assets, primarily mortgage loans | 646 | 591 |
Short term debt | 190 | 107 |
Long term debt | 11,075 | 10,655 |
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short term debt | 154 | 104 |
Long term debt | 10,074 | 10,150 |
Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other invested assets, primarily mortgage loans | 655 | 594 |
Short term debt | 40 | 3 |
Long term debt | $ 1,217 | $ 646 |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Detail) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |
May 31, 2017USD ($) | Jun. 30, 2017USD ($)Rig | Jun. 30, 2016USD ($) | Jun. 30, 2016USD ($) | |
Diamond Offshore [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Asset impairment charge, before tax and noncontrolling interests | $ 72 | $ 672 | $ 672 | |
Asset impairment charge, net of tax and noncontrolling interests | $ 23 | $ 263 | $ 263 | |
Diamond Offshore [Member] | Drilling Rigs [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Number rigs evaluated for impairment | Rig | 7 | |||
Number of rigs not evaluated for impairment | Rig | 9 | |||
Diamond Offshore [Member] | Ultra Deepwater [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Number of rigs impaired | Rig | 1 | |||
Diamond Offshore [Member] | Deepwater Semisubmersible Rigs [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Number of rigs impaired | Rig | 1 | |||
Boardwalk Pipeline [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Proceed from sale of plant and equipment | $ 65 | |||
Gain (loss) on sale of plant and equipment | (47) | |||
Gain (loss) on sale of plant and equipment,net of tax and noncontrolling interests | $ (15) |
Claim and Claim Adjustment Ex45
Claim and Claim Adjustment Expense Reserves - Additional Information (Detail) - CNA Financial [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2010 | Dec. 31, 2016 | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||||
Catastrophe losses, net of reinsurance | $ 39 | $ 85 | $ 73 | $ 121 | ||
Net A&EP adverse development before consideration of LPT | 60 | $ 200 | ||||
Fair value of the collateral trust account | 2,800 | 2,800 | $ 2,800 | |||
Asbestos and Environmental Pollution Reserves [Member] | ||||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||||
Net A&EP claim and allocated claim adjustment expense reserves | $ 1,600 | |||||
Aggregate limit under A&EP Loss Portfolio Transfer | 4,000 | |||||
Ceded A&EP claim and allocated claim adjustment expense reserves | 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 | $ 2,200 | |||||
Cumulative amounts ceded under the Loss Portfolio Transfer | 2,900 | 2,900 | 2,800 | |||
Remaining unrecognized retroactive reinsurance benefit | $ 351 | $ 351 | $ 334 |
Claim and Claim Adjustment Ex46
Claim and Claim Adjustment Expense Reserves - Reconciliation of Claim and Claim Adjustment Expense Reserves (Detail) - CNA Financial [Member] - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Gross reserves, beginning of year | $ 22,343 | $ 22,663 |
Ceded reserves, beginning of year | 4,094 | 4,087 |
Net reserves, beginning of year | 18,249 | 18,576 |
Net incurred claim and claim adjustment expenses: | ||
Provision for insured events of current year | 2,443 | 2,583 |
Decrease in provision for insured events of prior years | (159) | (198) |
Amortization of discount | 93 | 93 |
Total net incurred | 2,377 | 2,478 |
Net payments attributable to: | ||
Current year events | (266) | (311) |
Prior year events | (2,331) | (2,185) |
Total net payments | (2,597) | (2,496) |
Foreign currency translation adjustment and other | 70 | 46 |
Net reserves, end of period | 18,099 | 18,604 |
Ceded reserves, end of period | 4,080 | 4,371 |
Gross reserves, end of period | $ 22,179 | $ 22,975 |
Claim and Claim Adjustment Ex47
Claim and Claim Adjustment Expense Reserves - Net Prior Year Development (Detail) - CNA Financial [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development | $ (55) | $ (98) | $ (112) | $ (150) |
Pretax (favorable) unfavorable premium development | (8) | (8) | 17 | (22) |
Total pretax (favorable) unfavorable net prior year development | $ (63) | $ (106) | $ (95) | $ (172) |
Claim and Claim Adjustment Ex48
Claim and Claim Adjustment Expense Reserves - Net Prior Year Claim and Allocated Claim Adjustment Expense Reserve Development (Detail) - CNA Financial [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Medical professional liability | $ 3 | $ (23) | $ 4 | $ (30) |
Other professional liability and management liability | (37) | (41) | (69) | (50) |
Commercial auto | (20) | (26) | (35) | |
General liability | (1) | (37) | (1) | (52) |
Workers' compensation | (46) | 50 | (46) | 54 |
Other | 26 | (27) | 26 | (37) |
Total pretax (favorable) unfavorable development | $ (55) | $ (98) | $ (112) | $ (150) |
Claim and Claim Adjustment Ex49
Claim and Claim Adjustment Expense Reserves - Schedule of Impact of Loss Portfolio Transfer on the Consolidated Statement of Operations (Detail) - CNA Financial [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Claim And Claim Adjustment Expense Reserves [Line Items] | ||||
Net A&EP adverse development before consideration of LPT | $ 60 | $ 200 | ||
Retroactive reinsurance benefit recognized | $ (3) | $ (9) | (43) | (82) |
Pretax impact of A&EP reserve development and the LPT | $ (3) | $ (9) | $ 17 | $ 118 |
Shareholders' Equity - Componen
Shareholders' Equity - Components of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | $ 23,361 | $ 22,810 | ||
Other comprehensive income | $ 126 | $ 277 | 208 | 533 |
Ending Balance | 24,106 | 23,031 | 24,106 | 23,031 |
OTTI Gains (Losses) [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | 23 | 29 | 27 | 24 |
Other comprehensive income (loss) before reclassifications, after tax | (1) | (1) | (1) | 2 |
Reclassification of (gains) losses from accumulated other comprehensive income, after tax | 1 | (3) | 2 | |
Other comprehensive income | (1) | (4) | 4 | |
Ending Balance | 23 | 28 | 23 | 28 |
Unrealized Gains (Losses) on Investments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | 636 | 554 | 576 | 347 |
Other comprehensive income (loss) before reclassifications, after tax | 108 | 322 | 193 | 539 |
Reclassification of (gains) losses from accumulated other comprehensive income, after tax | (31) | (1) | (49) | 10 |
Other comprehensive income | 77 | 321 | 144 | 549 |
Amounts attributable to noncontrolling interests | (8) | (37) | (15) | (58) |
Ending Balance | 705 | 838 | 705 | 838 |
Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (2) | (2) | (2) | (3) |
Other comprehensive income (loss) before reclassifications, after tax | (1) | |||
Reclassification of (gains) losses from accumulated other comprehensive income, after tax | 1 | 1 | ||
Other comprehensive income | 1 | |||
Ending Balance | (2) | (2) | (2) | (2) |
Pension Liability [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (638) | (643) | (646) | (649) |
Reclassification of (gains) losses from accumulated other comprehensive income, after tax | 7 | 5 | 15 | 13 |
Other comprehensive income | 7 | 5 | 15 | 13 |
Amounts attributable to noncontrolling interests | (1) | (1) | (1) | (3) |
Ending Balance | (632) | (639) | (632) | (639) |
Foreign Currency Translation [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (168) | (64) | (178) | (76) |
Other comprehensive income (loss) before reclassifications, after tax | 42 | (48) | 53 | (34) |
Other comprehensive income | 42 | (48) | 53 | (34) |
Amounts attributable to noncontrolling interests | (4) | 6 | (5) | 4 |
Ending Balance | (130) | (106) | (130) | (106) |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (149) | (126) | (223) | (357) |
Other comprehensive income (loss) before reclassifications, after tax | 149 | 273 | 244 | 507 |
Reclassification of (gains) losses from accumulated other comprehensive income, after tax | (23) | 4 | (36) | 26 |
Other comprehensive income | 126 | 277 | 208 | 533 |
Amounts attributable to noncontrolling interests | (13) | (32) | (21) | (57) |
Ending Balance | $ (36) | $ 119 | $ (36) | $ 119 |
Shareholders' Equity - Compon51
Shareholders' Equity - Components of Accumulated Other Comprehensive Income (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
OTTI Gains (Losses) [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Tax on change in other comprehensive income (loss) before reclassifications | $ 1 | $ 1 | $ 0 | $ (1) |
Tax on reclassification from accumulated other comprehensive income | (1) | 0 | 1 | (1) |
Unrealized Gains (Losses) on Investments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Tax on change in other comprehensive income (loss) before reclassifications | (63) | (164) | (110) | (272) |
Tax on reclassification from accumulated other comprehensive income | 15 | 6 | 24 | (1) |
Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Tax on change in other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 |
Tax on reclassification from accumulated other comprehensive income | 0 | 0 | 0 | 0 |
Pension Liability [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Tax on change in other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 |
Tax on reclassification from accumulated other comprehensive income | (3) | (4) | (7) | (7) |
Foreign Currency Translation [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Tax on change in other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 |
Tax on reclassification from accumulated other comprehensive income | $ 0 | $ 0 | $ 0 | $ 0 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Equity [Abstract] | ||
Treasury stock repurchased, shares | 0.1 | 2.6 |
Purchase of Loews treasury stock | $ 6 | $ 98 |
Benefit Plans - Components of N
Benefit Plans - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 2 | $ 2 | $ 4 | $ 4 |
Interest cost | 29 | 32 | 59 | 64 |
Expected return on plan assets | (43) | (44) | (86) | (88) |
Amortization of unrecognized net loss | 11 | 12 | 22 | 23 |
Settlement charge | 1 | 1 | 3 | 2 |
Net periodic benefit cost | 3 | 2 | 5 | |
Other Postretirement Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 1 | 1 | ||
Expected return on plan assets | (1) | (1) | (2) | (2) |
Amortization of unrecognized prior service benefit | (1) | (1) | (2) | |
Net periodic benefit cost | $ (1) | $ (2) | $ (2) | $ (3) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Commitments [Line Items] | |||
Future policy benefits | $ 10,824 | $ 10,824 | $ 10,326 |
CNA Financial [Member] | |||
Commitments [Line Items] | |||
Aggregate amount related to indemnification agreements | 254 | 254 | |
Aggregate amount related to quantifiable guarantees | 434 | 434 | |
Potential amount of future payments under guarantees | 1,800 | 1,800 | |
Increase (decrease) in premium development recognized | 1 | (37) | |
Decrease in pretax income | 1 | 6 | |
CNA Financial [Member] | Multi Peril Insurance [Member] | |||
Commitments [Line Items] | |||
Future policy benefits | 96 | 96 | |
CNA Financial [Member] | Workers Compensation Policy [Member] | |||
Commitments [Line Items] | |||
Future policy benefits | $ 96 | $ 96 |
Segments - Additional Informati
Segments - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2017Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 5 |
Number of individual operating subsidiaries | 4 |
Segments - Consolidating Statem
Segments - Consolidating Statement of Income by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenues: | ||||
Insurance premiums | $ 1,734 | $ 1,730 | $ 3,379 | $ 3,429 |
Net investment income | 478 | 587 | 1,082 | 1,009 |
Investment gains (losses) | 43 | 1 | 77 | (27) |
Contract drilling revenues | 392 | 357 | 756 | 801 |
Other revenues | 712 | 632 | 1,365 | 1,268 |
Total | 3,359 | 3,307 | 6,659 | 6,480 |
Expenses: | ||||
Insurance claims and policyholders' benefits | 1,280 | 1,339 | 2,573 | 2,747 |
Amortization of deferred acquisition costs | 312 | 305 | 617 | 612 |
Contract drilling expenses | 196 | 198 | 400 | 411 |
Other operating expenses | 1,085 | 1,611 | 1,931 | 2,518 |
Interest | 139 | 130 | 281 | 273 |
Total | 3,012 | 3,583 | 5,802 | 6,561 |
Income (loss) before income tax | 347 | (276) | 857 | (81) |
Income tax (expense) benefit | (69) | (12) | (188) | (8) |
Net income (loss) | 278 | (288) | 669 | (89) |
Amounts attributable to noncontrolling interests | (47) | 223 | (143) | 126 |
Net income (loss) attributable to Loews Corporation | 231 | (65) | 526 | 37 |
CNA Financial [Member] | Operating Segments [Member] | ||||
Revenues: | ||||
Insurance premiums | 1,734 | 1,730 | 3,379 | 3,429 |
Net investment income | 475 | 502 | 1,020 | 937 |
Investment gains (losses) | 43 | 13 | 77 | (15) |
Other revenues | 114 | 103 | 219 | 200 |
Total | 2,366 | 2,348 | 4,695 | 4,551 |
Expenses: | ||||
Insurance claims and policyholders' benefits | 1,280 | 1,339 | 2,573 | 2,747 |
Amortization of deferred acquisition costs | 312 | 305 | 617 | 612 |
Other operating expenses | 364 | 376 | 707 | 756 |
Interest | 40 | 38 | 83 | 88 |
Total | 1,996 | 2,058 | 3,980 | 4,203 |
Income (loss) before income tax | 370 | 290 | 715 | 348 |
Income tax (expense) benefit | (98) | (80) | (182) | (71) |
Net income (loss) | 272 | 210 | 533 | 277 |
Amounts attributable to noncontrolling interests | (28) | (21) | (55) | (28) |
Net income (loss) attributable to Loews Corporation | 244 | 189 | 478 | 249 |
Diamond Offshore [Member] | Operating Segments [Member] | ||||
Revenues: | ||||
Net investment income | 1 | 1 | ||
Investment gains (losses) | (12) | (12) | ||
Contract drilling revenues | 392 | 357 | 756 | 801 |
Other revenues | 6 | 33 | 19 | 60 |
Total | 399 | 378 | 776 | 849 |
Expenses: | ||||
Contract drilling expenses | 196 | 198 | 400 | 411 |
Other operating expenses | 185 | 825 | 305 | 974 |
Interest | 27 | 24 | 55 | 50 |
Total | 408 | 1,047 | 760 | 1,435 |
Income (loss) before income tax | (9) | (669) | 16 | (586) |
Income tax (expense) benefit | 23 | 99 | 21 | 100 |
Net income (loss) | 14 | (570) | 37 | (486) |
Amounts attributable to noncontrolling interests | (7) | 276 | (18) | 235 |
Net income (loss) attributable to Loews Corporation | 7 | (294) | 19 | (251) |
Boardwalk Pipeline [Member] | Operating Segments [Member] | ||||
Revenues: | ||||
Other revenues | 318 | 308 | 686 | 655 |
Total | 318 | 308 | 686 | 655 |
Expenses: | ||||
Other operating expenses | 251 | 198 | 455 | 403 |
Interest | 44 | 45 | 90 | 88 |
Total | 295 | 243 | 545 | 491 |
Income (loss) before income tax | 23 | 65 | 141 | 164 |
Income tax (expense) benefit | (5) | (16) | (28) | (35) |
Net income (loss) | 18 | 49 | 113 | 129 |
Amounts attributable to noncontrolling interests | (12) | (32) | (70) | (81) |
Net income (loss) attributable to Loews Corporation | 6 | 17 | 43 | 48 |
Loews Hotels And Co [Member] | Operating Segments [Member] | ||||
Revenues: | ||||
Other revenues | 181 | 189 | 348 | 352 |
Total | 181 | 189 | 348 | 352 |
Expenses: | ||||
Other operating expenses | 155 | 180 | 296 | 328 |
Interest | 6 | 5 | 13 | 11 |
Total | 161 | 185 | 309 | 339 |
Income (loss) before income tax | 20 | 4 | 39 | 13 |
Income tax (expense) benefit | (10) | (3) | (19) | (9) |
Net income (loss) | 10 | 1 | 20 | 4 |
Net income (loss) attributable to Loews Corporation | 10 | 1 | 20 | 4 |
Corporate [Member] | ||||
Revenues: | ||||
Net investment income | 2 | 85 | 61 | 72 |
Other revenues | 93 | (1) | 93 | 1 |
Total | 95 | 84 | 154 | 73 |
Expenses: | ||||
Other operating expenses | 130 | 32 | 168 | 57 |
Interest | 22 | 18 | 40 | 36 |
Total | 152 | 50 | 208 | 93 |
Income (loss) before income tax | (57) | 34 | (54) | (20) |
Income tax (expense) benefit | 21 | (12) | 20 | 7 |
Net income (loss) | (36) | 22 | (34) | (13) |
Net income (loss) attributable to Loews Corporation | $ (36) | $ 22 | $ (34) | $ (13) |