Cover Document
Cover Document - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 19, 2020 | Jun. 28, 2019 | |
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-13958 | ||
Entity Registrant Name | THE HARTFORD FINANCIAL SERVICES GROUP, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 13-3317783 | ||
Entity Address, Address Line One | One Hartford Plaza | ||
Entity Address, City or Town | Hartford | ||
Entity Address, State or Province | CT | ||
Entity Address, Postal Zip Code | 06155 | ||
City Area Code | 860 | ||
Local Phone Number | 547-5000 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 20 | ||
Entity Common Stock, Shares Outstanding | 358,252,183 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement for its 2020 annual meeting of stockholders are incorporated by reference in Part III of this Form 10-K. | ||
Entity Central Index Key | 0000874766 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Common Stock, par value $0.01 per share | |||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | HIG | ||
Security Exchange Name | NYSE | ||
6.10% Notes due October 1, 2041 | |||
Title of 12(b) Security | 6.10% Notes due October 1, 2041 | ||
Trading Symbol | HIG 41 | ||
Security Exchange Name | NYSE | ||
7.875% Fixed-to-Floating Rate Junior Subordinated Debentures due 2042 | |||
Title of 12(b) Security | 7.875% Fixed-to-Floating Rate Junior Subordinated Debentures due 2042 | ||
Trading Symbol | HGH | ||
Security Exchange Name | NYSE | ||
Depositary Shares, Each Representing a 1/1,000th Interest in a Share of 6.000% Non-Cumulative Preferred Stock, Series G, par value $0.01 per share | |||
Title of 12(b) Security | Depositary Shares, Each Representing a 1/1,000th Interest in a Share of 6.000% Non-Cumulative Preferred Stock, Series G, par value $0.01 per share | ||
Trading Symbol | HIG PR G | ||
Security Exchange Name | NYSE |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | |||
Earned premiums | $ 16,923 | $ 15,869 | $ 14,141 |
Fee income | 1,301 | 1,313 | 1,168 |
Net investment income | 1,951 | 1,780 | 1,603 |
Net realized capital gains (losses): | |||
Total other-than-temporary impairment (“OTTI”) losses | (6) | (7) | (15) |
OTTI losses recognized in other comprehensive income | (3) | (6) | (7) |
Net OTTI losses recognized in earnings | (3) | (1) | (8) |
Other net realized capital gains (losses) | 398 | (111) | 173 |
Total net realized capital gains (losses) | 395 | (112) | 165 |
Other revenues | 170 | 105 | 85 |
Total revenues | 20,740 | 18,955 | 17,162 |
Benefits, losses and expenses | |||
Benefits, losses and loss adjustment expenses | 11,472 | 11,165 | 10,174 |
Amortization of deferred policy acquisition costs (DAC) | 1,622 | 1,384 | 1,372 |
Insurance operating costs and other expenses | 4,580 | 4,281 | 4,563 |
Loss on extinguishment of debt | (90) | (6) | 0 |
Reinsurance, Loss on Uncollectible Accounts in Period, Amount | 91 | 0 | 0 |
Interest expense | 259 | 298 | 316 |
Amortization of other intangible assets | 66 | 68 | 14 |
Total benefits, losses and expenses | 18,180 | 17,202 | 16,439 |
Income from continuing operations before income taxes | 2,560 | 1,753 | 723 |
Income tax expense | 475 | 268 | 985 |
Income (loss) from continuing operations, net of tax | 2,085 | 1,485 | (262) |
Income (loss) from discontinued operations, net of tax | 0 | 322 | (2,869) |
Net income (loss) | 2,085 | 1,807 | (3,131) |
Preferred stock dividends | 21 | 6 | 0 |
Net income (loss) available to common stockholders | $ 2,064 | $ 1,801 | $ (3,131) |
Earnings per common share | |||
Income (loss) from continuing operations Basic | $ 5.72 | $ 4.13 | $ (0.72) |
Income (loss) from continuing operations Diluted | 5.66 | 4.06 | (0.72) |
Net income (loss) Basic | 5.72 | 5.03 | (8.61) |
Net income (loss) Diluted | $ 5.66 | $ 4.95 | $ (8.61) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 2,085 | $ 1,807 | $ (3,131) |
Other comprehensive income (loss): | |||
Changes in net unrealized gain on securities | 1,660 | (2,180) | 655 |
Changes in OTTI losses recognized in other comprehensive income (OCI) | 1 | (1) | 0 |
Changes in net gain on cash flow hedging instruments | 14 | (25) | (58) |
Changes in foreign currency translation adjustments | 4 | (8) | 28 |
Changes in pension and other postretirement plan adjustments | (48) | (23) | 375 |
OCI, net of tax | 1,631 | (2,237) | 1,000 |
Comprehensive income (loss) | $ 3,716 | $ (430) | $ (2,131) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Investments: | ||
Fixed maturities, available-for-sale, at fair value (amortized cost of $40,078 and $35,603) | $ 42,148 | $ 35,652 |
Fixed maturities, at fair value using the fair value option | 11 | 22 |
Equity securities, at fair value | 1,657 | 1,214 |
Mortgage loans (net of allowances for loan losses of $0 and $1) | 4,215 | 3,704 |
Limited partnerships and other alternative investments | 1,758 | 1,723 |
Other investments | 320 | 192 |
Short-term investments | 2,921 | 4,283 |
Total investments | 53,030 | 46,790 |
Cash | 185 | 112 |
Restricted Cash | 77 | 9 |
Premiums receivable and agents’ balances, net | 4,384 | 3,995 |
Reinsurance recoverables, net | 5,527 | 4,357 |
Deferred policy acquisition costs | 785 | 670 |
Deferred income taxes, net | 299 | 1,248 |
Goodwill | 1,913 | 1,290 |
Property and equipment, net | 1,181 | 1,006 |
Other intangible assets, net | 1,070 | 657 |
Other assets | 2,366 | 2,173 |
Total assets | 70,817 | 62,307 |
Liabilities | ||
Unpaid losses and loss adjustment expenses | 36,517 | 33,029 |
Reserve for future policy benefits | 635 | 642 |
Other policyholder funds and benefits payable | 755 | 767 |
Unearned premiums | 6,635 | 5,282 |
Short-term debt | 500 | 413 |
Long-term debt | 4,348 | 4,265 |
Other liabilities | 5,157 | 4,808 |
Total liabilities | 54,547 | 49,206 |
Commitments and Contingencies (Note 14) | ||
Stockholders’ Equity | ||
Preferred stock, $0.01 par value — 50,000,000 shares authorized, 13,800 shares issued at December 31, 2019 and December 31, 2018, aggregate liquidation preference of $345 | 334 | 334 |
Common stock, $0.01 par value — 1,500,000,000 shares authorized, 384,923,222 shares issued at December 31, 2019 and December 31, 2018 | 4 | 4 |
Additional paid-in capital | 4,312 | 4,378 |
Retained earnings | 12,685 | 11,055 |
Treasury stock, at cost — 25,352,977 and 25,772,238 shares | (1,117) | (1,091) |
Accumulated other comprehensive income (loss), net of tax | 52 | (1,579) |
Total stockholders' equity | 16,270 | 13,101 |
Total liabilities and stockholders’ equity | 70,817 | 62,307 |
Debt Securities, Available-for-sale, Amortized Cost | 40,078 | 35,603 |
Allowance for Loan and Lease Losses, Real Estate | $ 0 | $ 1 |
Preferred Stock, Shares Issued | 13,800,000 | 13,800 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Preferred Stock, Liquidation Preference, Value | $ 345 | $ 0 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 1,500,000,000 | 1,500,000,000 |
Common Stock, Shares, Issued | 384,923,222 | 384,923,222 |
Treasury Stock, Shares | 25,352,977 | 25,772,238 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in Millions | Total | Preferred Stock, end of period | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock, at cost | Accumulated Other Comprehensive Income (Loss), net of tax |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect of accounting changes, net of tax | $ 0 | $ 0 | |||||
Adjusted balance beginning of period | 13,114 | (337) | |||||
Beginning balance at Dec. 31, 2016 | $ 0 | $ 5,247 | 13,114 | $ (1,125) | (337) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of shares under incentive and stock compensation plans | (76) | ||||||
Stock-based compensation plans expense | 104 | ||||||
Issuance of shares for warrant exercise | (67) | ||||||
Treasury stock retired | 829 | 829 | |||||
Net income (loss) | $ (3,131) | (3,131) | |||||
Dividends declared on preferred stock | 0 | 0 | |||||
Dividends declared on common stock | (341) | ||||||
Treasury stock acquired | (1,028) | ||||||
Issuance of shares under incentive and stock compensation plans | 100 | ||||||
Net shares acquired related to employee incentive and stock compensation plans | (37) | ||||||
Stock Issued During Period, Value, Treasury Stock Reissued | 67 | ||||||
Total other comprehensive income (loss) | 1,000 | ||||||
Ending balance at Dec. 31, 2017 | $ 13,494 | $ 0 | $ 4 | 4,379 | 9,642 | (1,194) | 663 |
Preferred Shares Outstanding, beginning of period at Dec. 31, 2016 | 0 | ||||||
Preferred Shares Outstanding | |||||||
Issuance of preferred shares | 0 | ||||||
Preferred Shares Outstanding, end of period at Dec. 31, 2017 | 0 | ||||||
Common Shares Outstanding, beginning of period (in thousands) at Dec. 31, 2016 | 373,949 | ||||||
Common Shares Outstanding | |||||||
Treasury stock acquired | (20,218) | ||||||
Issuance of shares under incentive and stock compensation plans | 2,301 | ||||||
Return of shares under incentive and stock compensation plans to treasury stock | (747) | ||||||
Issuance of shares for warrant exercise | 1,550 | ||||||
Common Shares Outstanding, end of period at Dec. 31, 2017 | 356,835 | ||||||
Common Shares Outstanding | |||||||
Cash dividends declared per common share | $ 0.94 | ||||||
Preferred Stock, Dividends Per Share, Declared | $ 0 | ||||||
Issuance of preferred stock | $ 0 | ||||||
Cumulative effect of accounting changes, net of tax | 5 | (5) | |||||
Adjusted balance beginning of period | 9,647 | 658 | |||||
Issuance of shares under incentive and stock compensation plans | (110) | ||||||
Stock-based compensation plans expense | 123 | ||||||
Issuance of shares for warrant exercise | (14) | ||||||
Treasury stock retired | 0 | 0 | |||||
Net income (loss) | $ 1,807 | 1,807 | |||||
Dividends declared on preferred stock | (6) | (6) | |||||
Dividends declared on common stock | (393) | ||||||
Treasury stock acquired | 0 | ||||||
Issuance of shares under incentive and stock compensation plans | 132 | ||||||
Net shares acquired related to employee incentive and stock compensation plans | (43) | ||||||
Stock Issued During Period, Value, Treasury Stock Reissued | 14 | ||||||
Total other comprehensive income (loss) | (2,237) | ||||||
Ending balance at Dec. 31, 2018 | $ 13,101 | $ 334 | $ 4 | 4,378 | 11,055 | (1,091) | (1,579) |
Preferred Shares Outstanding | |||||||
Issuance of preferred shares | 13,800 | ||||||
Preferred Shares Outstanding, end of period at Dec. 31, 2018 | 13,800 | ||||||
Common Shares Outstanding | |||||||
Treasury stock acquired | 0 | ||||||
Issuance of shares under incentive and stock compensation plans | 2,856 | ||||||
Return of shares under incentive and stock compensation plans to treasury stock | 849 | ||||||
Issuance of shares for warrant exercise | 309 | ||||||
Common Shares Outstanding, end of period at Dec. 31, 2018 | 359,151 | ||||||
Common Shares Outstanding | |||||||
Cash dividends declared per common share | $ 1.10 | ||||||
Preferred Stock, Dividends Per Share, Declared | $ 0 | ||||||
Issuance of preferred stock | $ 334 | ||||||
Adjusted balance beginning of period | 11,055 | (1,579) | |||||
Issuance of shares under incentive and stock compensation plans | (100) | ||||||
Stock-based compensation plans expense | 114 | ||||||
Issuance of shares for warrant exercise | (80) | ||||||
Treasury stock retired | 0 | 0 | |||||
Net income (loss) | $ 2,085 | 2,085 | |||||
Dividends declared on preferred stock | (21) | (21) | |||||
Dividends declared on common stock | (434) | ||||||
Treasury stock acquired | (200) | ||||||
Issuance of shares under incentive and stock compensation plans | 135 | ||||||
Net shares acquired related to employee incentive and stock compensation plans | (41) | ||||||
Stock Issued During Period, Value, Treasury Stock Reissued | 80 | ||||||
Total other comprehensive income (loss) | 1,631 | ||||||
Ending balance at Dec. 31, 2019 | $ 16,270 | $ 334 | $ 4 | $ 4,312 | 12,685 | $ (1,117) | 52 |
Preferred Shares Outstanding | |||||||
Issuance of preferred shares | 0 | ||||||
Preferred Shares Outstanding, end of period at Dec. 31, 2019 | 13,800 | ||||||
Common Shares Outstanding | |||||||
Treasury stock acquired | (3,412) | ||||||
Issuance of shares under incentive and stock compensation plans | 2,906 | ||||||
Return of shares under incentive and stock compensation plans to treasury stock | 796 | ||||||
Issuance of shares for warrant exercise | 1,721 | ||||||
Common Shares Outstanding, end of period at Dec. 31, 2019 | 359,570 | ||||||
Common Shares Outstanding | |||||||
Cash dividends declared per common share | $ 1.20 | ||||||
Preferred Stock, Dividends Per Share, Declared | $ 1,125 | ||||||
Issuance of preferred stock | $ 0 | ||||||
Cumulative effect of accounting changes, net of tax | $ 0 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Activities | |||
Net income (loss) | $ 2,085 | $ 1,807 | $ (3,131) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | |||
Net realized capital losses (gains) | (395) | 165 | (111) |
Amortization of deferred policy acquisition costs | 1,622 | 1,442 | 1,417 |
Additions to deferred policy acquisition costs | (1,635) | (1,404) | (1,383) |
Depreciation and amortization | 451 | 467 | 399 |
Pension settlement expense | 0 | 0 | 747 |
Loss on extinguishment of debt | (90) | (6) | 0 |
Loss (gain) on sale of business | 0 | (202) | 3,257 |
Other operating activities, net | 76 | 408 | 408 |
Change in assets and liabilities: | |||
Increase in reinsurance recoverables | (81) | (323) | (935) |
Increase (decrease) in accrued and deferred income taxes | 886 | (103) | 170 |
Impact of tax reform on accrued and deferred income taxes | 0 | 0 | 877 |
Increase in insurance liabilities | 768 | 493 | 1,648 |
Net change in other assets and other liabilities | (378) | 87 | (1,177) |
Cash provided by operating activities | 3,489 | 2,843 | 2,186 |
Proceeds from the sale/maturity/prepayment of: | |||
Fixed maturities, available-for-sale | 18,499 | 24,700 | 31,646 |
Fixed maturities, fair value option | 36 | 23 | 148 |
Proceeds from Sale and Maturity of Marketable Securities | 1,553 | 1,230 | 0 |
Equity securities, available-for-sale | 0 | 0 | 810 |
Mortgage loans | 771 | 483 | 734 |
Partnerships | 238 | 433 | 274 |
Payments for the purchase of: | |||
Fixed maturities, available-for-sale | (19,881) | (23,173) | (30,923) |
Payments to Acquire Marketable Securities | (1,316) | (1,500) | 0 |
Equity securities, available-for-sale | 0 | 0 | (638) |
Mortgage loans | (1,275) | (983) | (1,096) |
Partnerships | (303) | (481) | (509) |
Net proceeds from (payments for) derivatives | 32 | (224) | (314) |
Net additions to property and equipment | (105) | (122) | (250) |
Net proceeds from (payments for) short-term investments | 1,491 | (3,460) | (144) |
Other investing activities, net | 13 | (3) | 21 |
Proceeds from businesses sold, net of cash transferred | 0 | 1,115 | 222 |
Amounts paid for business acquired, net of cash acquired | (1,901) | 0 | (1,423) |
Net cash used for investing activities | (2,148) | (1,962) | (1,442) |
Financing Activities | |||
Deposits and other additions to investment and universal life-type contracts | 123 | 1,814 | 4,602 |
Withdrawals and other deductions from investment and universal life-type contracts | (124) | (9,210) | (13,562) |
Net transfers from separate accounts related to investment and universal life-type contracts | 0 | 6,949 | 7,969 |
Repayments at maturity or settlement of consumer notes | 0 | (2) | (13) |
Net increase (decrease) in securities loaned or sold under agreements to repurchase | (323) | (621) | 1,320 |
Repayment of debt | (1,583) | (826) | (416) |
Proceeds from the issuance of debt | 1,376 | 490 | 500 |
Proceeds from Issuance of Redeemable Preferred Stock | 0 | 334 | 0 |
Net return of shares under incentive and stock compensation plans | (6) | (16) | (10) |
Treasury stock acquired | (200) | (1,028) | |
Payments for Repurchase of Preferred Stock and Preference Stock | (21) | ||
Dividends paid on common stock | (433) | (379) | (341) |
Net cash used for financing activities | (1,191) | (1,467) | (979) |
Foreign exchange rate effect on cash | (9) | (10) | 70 |
Net increase (decrease) in cash, including cash classified as assets held for sale | 141 | (596) | (165) |
Less: Net decrease in cash classified as assets held for sale | 0 | (537) | (17) |
Net increase (decrease) in cash, including cash classified as assets held for sale | 141 | (59) | (148) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 121 | 180 | 328 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 262 | 121 | 180 |
Supplemental Disclosure of Cash Flow Information | |||
Income tax received | 396 | 9 | 6 |
Interest Paid, Excluding Capitalized Interest, Operating Activities | $ 261 | $ 292 | $ 322 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | 1 . BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES The Hartford Financial Services Group, Inc. is a holding company for insurance and financial services subsidiaries that provide property and casualty insurance, group life and disability products and mutual funds and exchange-traded products to individual and business customers (collectively, “The Hartford”, the “Company”, “we” or “our”). On May 23, 2019, the Company completed the previously announced acquisition of The Navigators Group, Inc. ("Navigators Group"), a global specialty underwriter, for $70 a share, or $2.137 billion in cash, including transaction expenses. On May 31, 2018, Hartford Holdings, Inc., a wholly owned subsidiary of the Company, completed the sale of the issued and outstanding equity of Hartford Life, Inc. (“HLI”), a holding company, for its life and annuity operating subsidiaries. On November 1, 2017, Hartford Life and Accident Insurance Company ("HLA"), a wholly owned subsidiary of the Company, completed the acquisition of Aetna's U.S. group life and disability business through a reinsurance transaction. On May 10, 2017, the Company completed the sale of its United Kingdom ("U.K.") property and casualty run-off subsidiaries. For further discussion of these transactions, see Note 2 - Business Acquisitions and Note 21 - Business Dispositions and Discontinued Operations of Notes to Consolidated Financial Statements. The Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) which differ materially from the accounting practices prescribed by various insurance regulatory authorities. Consolidation The Consolidated Financial Statements include the accounts of The Hartford Financial Services Group, Inc., and entities in which the Company directly or indirectly has a controlling financial interest. Entities in which the Company has significant influence over the operating and financing decisions but does not control are reported using the equity method. All intercompany transactions and balances between The Hartford and its subsidiaries and affiliates that are not held for sale have been eliminated. Discontinued Operations The results of operations of a component of the Company are reported in discontinued operations when certain criteria are met as of the date of disposal, or earlier if classified as held-for-sale. When a component is identified for discontinued operations reporting, amounts for prior periods are retrospectively reclassified as discontinued operations. Components are identified as discontinued operations if they are a major part of an entity's operations and financial results such as a separate major line of business or a separate major geographical area of operations. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates include those used in determining property and casualty and group long-term disability insurance product reserves, net of reinsurance; evaluation of goodwill for impairment; valuation of investments and derivative instruments; valuation allowance on deferred tax assets; and contingencies relating to corporate litigation and regulatory matters. Reclassifications Certain reclassifications have been made to prior year financial information to conform to the current year presentation. In particular, the restricted cash has been reclassified out of cash to a separate line on the Consolidated Balance Sheet. Adoption of New Accounting Standards Reclassification of Effect of Tax Rate Change from AOCI to Retained Earnings On January 1, 2018, the Company adopted the Financial Accounting Standards Board's ("FASB") new guidance for the effect on deferred tax assets and liabilities related to items recorded in accumulated other comprehensive income ("AOCI") resulting from the Tax Cuts and Jobs Act of 2017 ("Tax Reform") enacted on December 22, 2017. Tax Reform reduced the federal tax rate applied to the Company’s deferred tax balances from 35% to 21% on enactment. Under U.S. GAAP, the Company recorded the total effect of the change in enacted tax rates on deferred tax balances as a charge to income tax expense within net income during the fourth quarter of 2017, including the change in deferred tax balances related to components of AOCI. The new accounting guidance permitted the Company to reclassify the “stranded” tax effects out of AOCI and into retained earnings that resulted from recording the tax effects of unrealized investment gains, unrecognized actuarial losses on pension and other postretirement benefit plans, and cumulative translation adjustments at a 35% tax rate because the 14 point reduction in tax rate was recognized in net income instead of other comprehensive income. On adoption, the Company recorded a reclassification of $88 from AOCI to retained earnings. As a result of the reclassification, in the first quarter of 2018, the Company reduced the estimated loss on sale recorded in income from discontinued operations by $193 , net of tax, for the increase in AOCI related to the assets held for sale. The reduction in the loss on sale resulted in a corresponding increase in assets held for sale and AOCI as of January 1, 2018 and the AOCI associated with assets held for sale was removed from the balance sheet when the sale closed on May 31, 2018. Additionally, as of January 1, 2018, the Company reclassified $105 of stranded tax effects related to continuing operations which reduced AOCI and increased retained earnings. Financial Instruments- Recognition and Measurement On January 1, 2018, the Company adopted updated guidance issued by the FASB for the recognition and measurement of financial instruments through a cumulative effect adjustment to the opening balances of retained earnings and AOCI. The new guidance requires investments in equity securities to be measured at fair value with any changes in valuation reported in net income except for investments that are consolidated or are accounted for under the equity method of accounting. The new guidance also requires a deferred tax asset resulting from net unrealized losses on fixed maturities, available-for-sale that are recognized in AOCI to be evaluated for recoverability in combination with the Company’s other deferred tax assets. Under prior guidance, the Company reported equity securities, available-for-sale ("AFS"), at fair value with changes in fair value reported in other comprehensive income. As of January 1, 2018, the Company reclassified from AOCI to retained earnings net unrealized gains of $83 , after tax, related to equity securities having a fair value of $1.0 billion . In addition, $10 of net unrealized gains net of shadow DAC related to discontinued operations were reclassified from AOCI to retained earnings of the life and annuity business held for sale, which increased the estimated loss on sale in 2018 by the same amount. Beginning in 2018, the Company reports equity securities at fair value with changes in fair value reported in net realized capital gains and losses. Revenue Recognition On January 1, 2018, the Company adopted the FASB’s updated guidance for recognizing revenue from contracts with customers, which excludes insurance contracts and financial instruments. Revenue subject to the guidance is recognized when, or as, goods or services are transferred to customers in an amount that reflects the consideration that an entity is expected to receive in exchange for those goods or services. For all but certain revenues associated with our Hartford Funds business, the updated guidance is consistent with previous guidance for the Company’s transactions and did not have an effect on the Company’s financial position, cash flows or net income. The updated guidance also updated criteria for determining when the Company acts as a principal or an agent. The Company determined that it is the principal for some of its mutual fund distribution service contracts and, upon adoption, reclassified distribution costs of $188 for the year ended December 31, 2017 , that were previously netted against fee income to insurance operating costs and other expenses. Qualitative information about the nature, timing of recognition and cash flows for the Company’s revenues subject to the updated guidance is disclosed below under Significant Accounting Policies-Revenue Recognition and quantitative information is disclosed in Note 4 - Segment Information of Notes to Consolidated Financial Statements. Hedging Activities On January 1, 2019, the Company adopted the FASB's updated guidance for hedge accounting through a cumulative effect adjustment of less than $1 to reclassify cumulative ineffectiveness on cash flow hedges from retained earnings to AOCI. The updates allow hedge accounting for new types of interest rate hedges of financial instruments and simplify documentation requirements to qualify for hedge accounting. In addition, any gain or loss from hedge ineffectiveness is reported in the same income statement line with the effective hedge results and the hedged transaction. For cash flow hedges, the ineffectiveness is recognized in earnings only when the hedged transaction affects earnings; otherwise, the ineffectiveness gains or losses remain in AOCI. Under previous accounting, total hedge ineffectiveness was reported separately in realized capital gains and losses apart from the hedged transaction. The adoption did not affect the Company’s financial position or cash flows or have a material effect on net income. Leases On January 1, 2019, the Company adopted the FASB’s updated lease guidance. Under the updated guidance, lessees with operating leases are required to recognize a liability for the present value of future minimum lease payments with a corresponding asset for the right of use of the property. Prior to the new guidance, future minimum lease payments on operating leases were commitments that were not recognized as liabilities on the balance sheet. Leases are classified as financing or operating leases. Where the lease is economically similar to a purchase because The Hartford obtains control of the underlying asset, the lease is classified as a financing lease and the Company recognizes amortization of the right of use asset and interest expense on the liability. Where the lease provides The Hartford with only the right to control the use of the underlying asset over the lease term and the lease term is greater than one year, the lease is an operating lease and the lease cost is recognized as rental expense over the lease term on a straight-line basis. Leases with a term of one year or less are also expensed over the lease term but not recognized on the balance sheet. On adoption, The Hartford recorded a lease payment obligation of $160 for outstanding leases and a right of use asset of $150 , which is net of $10 in lease incentives received, with no change to comparative periods. As permitted by the new guidance, as of the implementation date, the Company did not reassess whether expired or existing contracts are leases or contain leases, did not change the classification of expired or existing operating leases, and did not reassess initial direct costs for existing leases to determine if deferred costs should be written-off or recorded on adoption. The adoption did not impact net income or cash flows. Future Adoption of New Accounting Standards Goodwill The FASB issued updated guidance on testing goodwill for impairment. The updated guidance requires recognition and measurement of goodwill impairment based on the excess of the carrying value of the reporting unit compared to its estimated fair value, with the amount of the impairment not to exceed the carrying value of the reporting unit’s goodwill. Under existing guidance, if the reporting unit’s carrying value exceeds its estimated fair value, the Company allocates the fair value of the reporting unit to all of the assets and liabilities of the reporting unit to determine an implied goodwill value. An impairment loss is then recognized for the excess, if any, of the carrying value of the reporting unit’s goodwill compared to the implied goodwill value. The Company will adopt the updated guidance January 1, 2020 on a prospective basis as required. The Company would not have recognized a goodwill impairment loss for the years presented had the updated guidance been in effect. Since the estimated fair value of the reporting unit will no longer be allocated to the assets and liabilities of the reporting unit to determine an implied goodwill value, under the updated guidance changes in market-based factors are more likely to result in a goodwill impairment, whether a reporting unit's fair value is estimated using an income approach or a market approach. For example, changes in the weighted average cost of capital that is used to discount expected cash flows under the income approach or changes in market-based factors such as peer company price to earnings multiples or price to book multiples under a market approach can significantly affect changes to the estimated fair value of each reporting unit and such changes could result in impairments that have a material effect on our results of operations and financial condition. Financial Instruments - Credit Losses The FASB issued updated guidance for recognition and measurement of credit losses on financial instruments. The new guidance will replace the “incurred loss” approach with an “expected loss” model for recognizing credit losses for financial instruments carried at other than fair value. Under the new model, an allowance for credit losses ("ACL") will be recorded based on an estimate of credit losses expected over the life of financial instruments carried at other than fair value, such as mortgage loans, reinsurance recoverables and receivables. Under the current accounting model an ACL is recognized using an incurred loss approach. The new guidance also requires that we estimate a liability for credit losses ("LCL") on off-balance-sheet credit exposures such as financial guarantees and mortgage loan commitments that the Company cannot unconditionally cancel. Credit losses on fixed maturities AFS carried at fair value will continue to be measured based on the present value of expected future cash flows; however, the losses will be recognized through an ACL and no longer as an adjustment to the amortized cost. Recoveries of impairments on fixed maturities AFS will be recognized as reversals of the ACL and no longer accreted as investment income through an adjustment to the investment yield. The ACL on fixed maturities AFS cannot cause the net carrying value to be below fair value and, therefore, it is possible that future increases in fair value due to decreases in market interest rates could cause the reversal of a valuation allowance and increase net income. The new guidance also requires purchased financial assets with a more-than-insignificant amount of credit deterioration since original issuance to be recorded based on contractual amounts due with an initial allowance recorded at the date of purchase. The Company will adopt the guidance effective January 1, 2020, through a cumulative effect adjustment to retained earnings of $18 , representing a net increase to the ACL and LCL, after-tax, upon adoption. No ACL will be recognized at adoption for fixed maturities, AFS; rather, these investments will be evaluated for an ACL prospectively. Reserve for Future Policy Benefits The FASB issued new guidance on accounting for long-duration insurance contracts. The Company’s long-duration insurance contracts include paid-up life insurance and whole-life insurance policies resulting from conversion from group life policies and run-off structured settlement and terminal funding agreement liabilities with total future policy benefit reserves of $635 as of December 31, 2019 . Under existing guidance, a reserve for future policy benefits is calculated as the present value of future benefits and related expenses less the present value of any future premiums using assumptions “locked in” at the time the policies were issued, including discount rate, lapse rate, mortality, and expense assumptions. Under existing guidance, assumptions are only updated if there is an expected premium deficiency. The new guidance will require that underlying cash flow assumptions (such as for lapse rate, mortality and expenses) be reviewed and updated at least annually in the same quarter each year. The new guidance also requires that the discount rate assumption be updated each quarter and be based on an upper-medium grade (low-credit-risk) fixed-income investment yield. The change in the reserve estimate as a result of updating cash flow assumptions will be recognized in net income. The change in the reserve estimate as a result of updating the discount rate assumption will be recognized in other comprehensive income. Because reserves will be based on updated assumptions and no longer locked in at contract inception, there will no longer be a test for premium deficiency. The new guidance will be effective January 1, 2022, and will be applied to balances in place as of the earliest period presented. Early adoption is permitted. The Company has not yet determined the method or timing for adoption or estimated the effect on the Company’s financial statements. Significant Accounting Policies The Company’s significant accounting policies are as follows: Revenue Recognition Premium Revenue from Direct Insurance and Assumed Reinsurance Property and casualty premiums are earned on a pro rata basis over the policy period and include accruals for policies that have been written by agents but not yet reported to us, as well as ultimate premium revenue anticipated under auditable and retrospectively rated policies. We estimate the amount of premium not yet reported based on current and historical trends of the business being written. Such estimates are regularly reviewed and updated and any resulting adjustments are included in the current year's results. Unearned premiums represent the premiums applicable to the unexpired terms of policies in force. Group life, disability and accident premiums are generally due from policyholders and recognized as revenue on a pro rata basis over the period of the contracts. An estimated allowance for doubtful accounts is recorded on the basis of periodic evaluations of balances due from insureds, management’s experience and current economic conditions. The Company charges off any balances that are determined to be uncollectible. The allowance for doubtful accounts included in premiums receivable and agents’ balances in the Consolidated Balance Sheets was $145 and $135 as of December 31, 2019 and 2018, respectively. Revenue from Non-Insurance Contracts with Customers Installment fees are charged on property and casualty insurance contracts for billing the insurance customer in installments over the policy term. These fees are recognized in fee income as earned on collection. Insurance servicing revenues within Personal Lines consist of up-front commissions earned for collecting premiums and processing claims on insurance policies for which The Hartford does not assume underwriting risk, predominantly related to the National Flood Insurance Plan program. These insurance servicing revenues are recognized over the period of the flood program's policy terms. Group Benefits earns fee income from employers for the administration of underwriting, implementation and claims processing for employer self-funded plans and for leave management services. Fees are recognized as services are provided and collected monthly. Hartford Funds provides investment management, administrative and distribution services to mutual funds and exchange-traded products. The Company assesses investment advisory, distribution and other asset management fees primarily based on the average daily net asset values from mutual funds and exchange-traded products, which are recorded in the period in which the services are provided and are collected monthly. Fluctuations in domestic and international markets and related investment performance, volume and mix of sales and redemptions of mutual funds or exchange-traded products, and other changes to the composition of assets under management are all factors that ultimately have a direct effect on fee income earned. Hartford Funds other fees primarily include transfer agent fees, generally assessed as a charge per account, and are recognized as fee income in the period in which the services are provided with payments collected monthly. Corporate investment management and other fees are primarily for managing third party invested assets, including management of the invested assets of The Hartford’s former life and annuity business. These fees, calculated based on the average quarterly net asset values, are recorded in the period in which the services are provided and are collected quarterly. Fluctuations in markets and interest rates and other changes to the composition of assets under management are all factors that ultimately have a direct effect on fee income earned. Corporate transition service revenues consist of operational services provided to The Hartford’s former life and annuity business that are provided for a limited period following sale. The transition service revenues are recognized as other revenues in the period in which the services are provided with payments collected monthly. Dividends to Policyholders Policyholder dividends are paid to certain property and casualty policyholders. Policies that receive dividends are referred to as participating policies. Participating dividends to policyholders are accrued and reported in insurance operating costs and other expenses and other liabilities using an estimate of the amount to be paid based on underlying contractual obligations under policies and applicable state laws. Net written premiums for participating property and casualty insurance policies represented 9% , 10% and 10% of total net written premiums for the years ended December 31, 2019 , 2018 and 2017 , respectively. Participating dividends to property and casualty policyholders were $30 , $23 and $35 for the years ended December 31, 2019 , 2018 and 2017 , respectively. There were no additional amounts of income allocated to participating policyholders. Investments Overview The Company’s investments in fixed maturities include bonds, structured securities, redeemable preferred stock and commercial paper. Most of these investments are classified as AFS and are carried at fair value. The after tax difference between fair value and cost or amortized cost is reflected in stockholders’ equity as a component of AOCI. Effective January 1, 2018, equity securities are measured at fair value with any changes in valuation reported in net income. For further information, see Financial Instruments - Recognition and Measurement discussion above. Fixed maturities for which the Company elected the fair value option are classified as FVO, generally certain securities that contain embedded credit derivatives, and are carried at fair value with changes in value recorded in realized capital gains and losses. Mortgage loans are recorded at the outstanding principal balance adjusted for amortization of premiums or discounts and net of valuation allowances. Short-term investments are carried at amortized cost, which approximates fair value. Limited partnerships and other alternative investments are reported at their carrying value and are primarily accounted for under the equity method with the Company’s share of earnings included in net investment income. Recognition of income related to limited partnerships and other alternative investments is delayed due to the availability of the related financial information, as private equity and other funds are generally on a three-month delay and hedge funds on a one-month delay. Accordingly, income for the years ended December 31, 2019 , 2018 , and 2017 may not include the full impact of current year changes in valuation of the underlying assets and liabilities of the funds, which are generally obtained from the limited partnerships. Other investments primarily consist of investments of consolidated investment funds for which the Company has provided seed money and reports the underlying investments at fair value with changes in the fair value recognized in income consistent with accounting requirements for investment companies. Also included in Other investments are derivative instruments which are carried at fair value and overseas deposits which are measured at fair value using the net asset value as a practical expedient. Net Realized Capital Gains and Losses Net realized capital gains and losses from investment sales are reported as a component of revenues and are determined on a specific identification basis. Net realized capital gains and losses also result from fair value changes in fixed maturities, FVO, equity securities, and derivatives contracts that do not qualify, or are not designated, as a hedge for accounting purposes. Impairments and mortgage loan valuation allowances are recognized as net realized capital losses in accordance with the Company’s impairment and mortgage loan valuation allowance policies as discussed in Note 6 - Investments of Notes to Consolidated Financial Statements. Effective January 1, 2020, the Company will record changes in the ACL on fixed maturities, AFS as a component of net realized capital gains and losses. For further information, see Financial Instruments - Credit Losses discussion above. Net Investment Income Interest income from fixed maturities and mortgage loans is recognized when earned on the constant effective yield method based on estimated timing of cash flows. Most premiums and discounts on fixed maturities are amortized to the maturity date. Premiums on callable bonds may be amortized to call dates based on call prices. For securitized financial assets subject to prepayment risk, yields are recalculated and adjusted periodically to reflect historical and/or estimated future prepayments using the retrospective method; however, if these investments are impaired and for certain other asset-backed securities, any yield adjustments are made using the prospective method. Prepayment fees and make-whole payments on fixed maturities and mortgage loans are recorded in net investment income when earned. For equity securities, dividends are recognized as investment income on the ex-dividend date. Limited partnerships and other alternative investments primarily use the equity method of accounting to recognize the Company’s share of earnings. For impaired fixed maturities, the Company accretes the new amortized cost to the estimated future cash flows over the expected remaining life of the investment by prospectively adjusting the effective yield, if necessary. The Company’s non-income producing investments were not material for the years ended December 31, 2019 , 2018 and 2017 . Effective January 1, 2020, the Company will no longer record impairments for credit losses as adjustments to the amortized cost of the fixed maturity, unless there is an intent to sell before recovery from impairment, but rather will record an ACL. Future changes in the ACL resulting from improvements in expected future cash flows will not be recorded as adjustments to yield through net investment income but will be recorded through net realized capital gains (losses). For fixed maturities with an ACL, net investment income will be recognized at the original effective rate and accretion of the ACL will be recognized through net realized capital gains (losses). For further information, see Financial Instruments - Credit Losses discussion above. Derivative Instruments Overview The Company utilizes a variety of over-the-counter ("OTC") derivatives, derivatives cleared through central clearing houses ("OTC-cleared") and exchange traded derivative instruments as part of its overall risk management strategy as well as to enter into replication transactions. The types of instruments may include swaps, caps, floors, forwards, futures and options to achieve one of four Company-approved objectives: • to hedge risk arising from interest rate, equity market, commodity market, credit spread and issuer default, price or currency exchange rates or volatility; • to manage liquidity; • to control transaction costs; • to enter into synthetic replication transactions. Interest rate and credit default swaps involve the periodic exchange of cash flows with other parties, at specified intervals, calculated using agreed upon rates or other financial variables and notional principal amounts. Generally, little to no cash or principal payments are exchanged at the inception of the contract. Typically, at the time a swap is entered into, the cash flow streams exchanged by the counterparties are equal in value. The Company clears certain interest rate swap and credit default swap derivative transactions through central clearing houses. OTC-cleared derivatives require initial collateral at the inception of the trade in the form of cash or highly liquid securities, such as U.S. Treasuries and government agency investments. Central clearing houses also require additional cash as variation margin based on daily market value movements. For information on collateral, see the derivative collateral arrangements section in Note 7 - Derivatives of Notes to Consolidated Financial Statements. In addition, OTC-cleared transactions include price alignment amounts either received or paid on the variation margin, which are reflected in realized capital gains and losses or, if characterized as interest, in net investment income. Forward contracts are customized commitments that specify a rate of interest or currency exchange rate to be paid or received on an obligation beginning on a future start date and are typically settled in cash. Financial futures are standardized commitments to either purchase or sell designated financial instruments, at a future date, for a specified price and may be settled in cash or through delivery of the underlying instrument. Futures contracts trade on organized exchanges. Margin requirements for futures are met by pledging securities or cash, and changes in the futures’ contract values are settled daily in cash. Option contracts grant the purchaser, for a premium payment, the right to either purchase from or sell to the issuer a financial instrument at a specified price, within a specified period or on a stated date. The contracts may reference commodities, which grant the purchaser the right to either purchase from or sell to the issuer commodities at a specified price, within a specified period or on a stated date. Option contracts are typically settled in cash. Foreign currency swaps exchange an initial principal amount in two currencies, agreeing to re-exchange the currencies at a future date, at an agreed upon exchange rate. There may also be a periodic exchange of payments at specified intervals calculated using the agreed upon rates and exchanged principal amounts. The Company’s derivative transactions conducted in insurance company subsidiaries are used in strategies permitted under the derivative use plans required by the State of Connecticut, the State of Illinois and the State of New York insurance departments. Accounting and Financial Statement Presentation of Derivative Instruments and Hedging Activities Derivative instruments are recognized on the Consolidated Balance Sheets at fair value and are reported in Other Investments and Other Liabilities. For balance sheet presentation purposes, the Company has elected to offset the fair value amounts, income accruals, and related cash collateral receivables and payables of OTC derivative instruments executed in a legal entity and with the same counterparty or under a master netting agreement, which provides the Company with the legal right of offset. On the date the derivative contract is entered into, the Company designates the derivative as (1) a hedge of the fair value of a recognized asset or liability (“fair value” hedge), (2) a hedge of the variabi |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Business Acquisitions | 2 . BUSINESS ACQUISITIONS Navigators Group On May 23, 2019 , The Hartford acquired 100% of the outstanding shares of Navigators Group for $70 a share, or $2.121 billion in cash, comprised of cash of $2.098 billion and a liability for cash awards to replace share-based awards of $23 . The acquisition of the specialty underwriter expands product offerings and geographic reach, and adds underwriting and industry talent to strengthen the Company’s value proposition to agents and customers. Fair Value of Assets Acquired and Liabilities Assumed at the Acquisition Date As of May 23, 2019 Assets Cash and invested assets $ 3,848 Premiums receivable 492 Reinsurance recoverables 1,100 Prepaid reinsurance premiums 238 Other intangible assets 580 Property and equipment 83 Other assets 99 Total Assets Acquired 6,440 Liabilities Unpaid losses and loss adjustment expenses 2,823 Unearned premiums 1,219 Long-term debt 284 Deferred income taxes, net 48 Other liabilities 568 Total Liabilities Assumed 4,942 Net identifiable assets acquired 1,498 Goodwill [1] 623 Net Assets Acquired $ 2,121 [1] Non-deductible for income tax purposes. Intangible Assets Recorded in Connection with the Acquisition Asset Amount Weighted Average Expected Life Value of in-force contracts - Property and Casualty ("P&C") $ 180 1 Distribution relationships 302 15 Trade name 17 10 Total finite life intangibles 499 10 Capacity of Lloyd's Syndicate 66 Licenses 15 Total indefinite life intangibles 81 Total other intangible assets $ 580 The value of in-force contracts represents the estimated profits relating to the unexpired contracts in force net of related prepaid reinsurance at the acquisition date through expiry of the contracts. The value of distribution relationships was estimated using net cash flows expected to come from the renewals of in-force contracts and new business sold through existing distribution partners less costs to service the related policies. The value of the trade name was estimated using an assumed cost of a market-based royalty fee applied to net cash flows expected to come from business marketed as Navigators, a brand of The Hartford. Lloyd's of London is an insurance market-place operating worldwide ("Lloyd's"). Lloyd's does not underwrite risks. Corporate members accept underwriting risks through the syndicates that they form. The Company accepts risks as the sole corporate member of the Lloyd's Syndicate. The value of the capacity of Lloyd’s Syndicate was estimated using net cash flows attributable to Navigators Group's right to underwrite business up to an approved level of premium in the Lloyd’s market. The values for in-force contracts, the distribution relationships, trade name and the capacity of the Lloyd's Syndicate were estimated using a discounted cash flow method. Significant inputs to the valuation models include estimates of expected new business, premium retention rates, investment returns, claim costs, expenses and discount rates based on a weighted average cost of capital. The value of licenses to write insurance in over 50 U.S. jurisdictions was estimated based on recent transactions for shell companies. Property and equipment includes real estate owned and right of use assets under leases that were valued based on current values and market rental rates, software that was valued based on estimated replacement cost and furniture and equipment. These will be amortized over periods consistent with the Company’s policy. The fair value of unpaid losses and loss adjustment expenses net of related reinsurance recoverables was estimated based on the present value of expected future net unpaid loss and loss adjustment expense payments discounted using a risk-free interest rate as of the acquisition date plus a risk margin. The discount and risk margin amounts substantially offset. Debt assumed in the transaction was valued based on the principal and interest payments discounted at the current market yield. This debt was paid off in August 2019. For further discussion of this transaction, see Note 13 - Debt of Notes to Consolidated Financial Statements. The $623 of goodwill recognized is largely attributable to the acquired employee workforce and underwriting talent, leverageable operating platform, improved investment yield and economies of scale. Goodwill is allocated to the Company's Commercial Lines reporting segment. Immediately after closing on the acquisition of Navigators Group, effective May 23, 2019, the Company purchased an aggregate excess of loss reinsurance agreement covering adverse reserve development (“Navigators ADC”) from National Indemnity Company ("NICO") on behalf of Navigators Insurance Company and certain of its affiliates (collectively, “Navigators Insurers”). Under the Navigators ADC, the Navigators Insurers paid NICO a reinsurance premium of $91 in exchange for reinsurance coverage of $300 of adverse net loss reserve development that attaches $100 above the Navigators Insurers' existing net loss and allocated loss adjustment reserves as of December 31, 2018 subject to the treaty of $1.816 billion for accidents and losses prior to December 31, 2018. In addition to recognizing a $91 before tax charge to earnings in 2019 for the Navigators ADC reinsurance premium, the Company recognized a charge against earnings of $97 before tax in the second quarter of 2019 as a result of a review of Navigators Insurers’ net acquired reserves upon acquisition of the business. Navigators Insurers had previously recognized $52 before tax of adverse reserve development in the first quarter of 2019, including $32 of adverse development subject to the Navigators ADC. As such, reserve development of $97 before tax recognized upon acquisition of the business included $68 remaining of the $100 Navigators ADC retention for 2018 and prior accident years and $29 of adverse reserve development related to the 2019 accident year which is not covered by the Navigators ADC. On 2018 and prior accident year reserves subject to the Navigators ADC, the Company recognized a total of $84 of adverse development in 2019, including the $68 of reserve development recorded upon acquisition of the business. The $84 of prior accident year reserve development was net of a $91 net reinsurance benefit recognized under the Navigators ADC. While the Company has ceded $107 of losses to the ADC through December 31, 2019, which has been recognized as a reinsurance recoverable, $16 of the ceded losses has been recognized as a deferred gain within other liabilities since the Navigators ADC has been accounted for as retroactive reinsurance and cumulative losses ceded of $107 exceed the ceded premium paid of $91 . As the Company has ceded $107 of the $300 available limit, there is $193 of remaining limit available as of December 31, 2019. Since the acquisition date of May 23, 2019, the revenues and net losses of the business acquired have been included in the Company's Consolidated Statements of Operations in the Commercial Lines reporting segment with revenues of $1.0 billion and net losses of $167 during the period from the acquisition date to December 31, 2019, including the $91 before tax ( $72 net of tax) of premium paid for the Navigators ADC, a charge of $97 before tax ( $77 net of tax) for the increase in acquired reserves following the acquisition, a charge of $16 before tax ( $13 net of tax) for the deferred gain on retroactive reinsurance and net investment income of $67 before tax ( $54 net of tax). The Company recognized $17 of acquisition related costs for the twelve months ended December 31, 2019. These costs are included in insurance operating costs and other expenses in the Consolidated Statement of Operations. The acquisition date fair values of assets and liabilities, including insurance reserves and intangible assets, as well as the related estimated useful lives of intangibles, are provisional and are subject to revision within one year of the acquisition date. The following table presents supplemental unaudited pro forma amounts of revenue and net income for the year ended December 31, 2019 and 2018 for the Company as though the business was acquired on January 1, 2018. Pro forma adjustments include the revenue and earnings of Navigators Group for each period as well as amortization of identifiable intangible assets acquired. Pro Forma Results for the Year Ended December 31 Revenue Earnings 2019 Supplemental (unaudited) combined pro forma $ 21,416 $ 2,080 2018 Supplemental (unaudited) combined pro forma $ 20,398 $ 1,828 Aetna Group Insurance On November 1, 2017, The Hartford acquired Aetna's U.S. group life and disability business through a reinsurance transaction for total consideration of $ 1.452 billion , comprised of cash of $ 1.450 billion and share-based awards of $ 2 , and recorded provisional estimates of the fair value of the assets acquired and liabilities assumed. The acquisition enables the Company to increase its market share in the group life and disability industry. In 2018, The Hartford and Aetna agreed on the final assets acquired and liabilities assumed as of the acquisition date and The Hartford finalized its provisional estimates with a final cash settlement within the one year measurement period allowed under U.S. GAAP. As a result, in the third quarter of 2018, The Hartford recorded additional assets and liabilities at fair value of $ 80 and $ 80 , respectively, with no change in goodwill. The following table presents the preliminary allocation of the purchase price to the assets acquired and liabilities assumed as of the acquisition date, the measurement period adjustments recorded, and the final purchase price allocation. Fair Value of Assets Acquired and Liabilities Assumed at the Acquisition Date Preliminary Value as of November 1, 2017 (as previously reported as of December 31, 2017) Measurement Period Adjustments As Adjusted Value as of November 1, 2017 Assets Cash and invested assets $ 3,360 $ 45 $ 3,405 Premiums receivable 96 7 103 Deferred income taxes, net 56 13 69 Other intangible assets 629 — 629 Property and equipment 68 — 68 Reinsurance recoverables — 31 31 Other assets 16 (16 ) — Total Assets Acquired 4,225 80 4,305 Liabilities Unpaid losses and loss adjustment expenses 2,833 71 2,904 Reserve for future policy benefits payable 346 1 347 Other policyholder funds and benefits payable 245 1 246 Unearned premiums 3 1 4 Other liabilities 69 6 75 Total Liabilities Assumed 3,496 80 3,576 Net identifiable assets acquired 729 — 729 Goodwill [1] 723 — 723 Net Assets Acquired $ 1,452 $ — $ 1,452 [1] Approximately $ 610 is deductible for income tax purposes. The effect of measurement period adjustments on the Consolidated Statements of Operations for the year ended December 31, 2018 was immaterial and was determined as if the accounting had been completed as of the acquisition date. Intangible Assets Recorded in Connection with the Acquisition Asset Amount Estimated Useful Life Value of in-force contracts $ 23 1 year Customer relationships 590 15 years Marketing agreement with Aetna 16 15 years Total $ 629 The value of in-force contracts represents the estimated profits relating to the unexpired contracts in force at the acquisition date through expiry of the contracts. The value of customer relationships was estimated using net cash flows expected to come from the renewals of in-force contracts acquired less costs to service the related policies. The value of the marketing agreement with Aetna was estimated using net cash flows expected to come from incremental new business written during the three years duration of the agreement, less costs to service the related contracts. The value for each of the identifiable intangible assets was estimated using a discounted cash flow method. Significant inputs to the valuation models include estimates of expected premiums, persistency rates, investment returns, claim costs, expenses and discount rates based on a weighted average cost of capital. Property and equipment represents an internally developed integrated absence management software acquired that was valued based on estimated replacement cost. The software is amortized over 5 years on a straight-line basis. Unpaid losses and loss adjustment expenses acquired were recorded at estimated fair value equal to the present value of expected future unpaid loss and loss adjustment expense payments discounted using the net investment yield estimated as of the acquisition date plus a risk margin. The fair value adjustment for the risk margin is amortized over 12 years based on the payout pattern of losses and loss expenses as estimated as of the acquisition date. The revenues and earnings of the business acquired are included in the Company's Consolidated Statements of Operations in the Group Benefits reporting segment and were $ 370 and $( 37 ) in the year of acquisition, respectively. The $ 723 of goodwill recognized is largely attributable to the acquired employee workforce, expected expense synergies, economies of scale, and tax benefits not included within the value of identifiable intangibles. Goodwill is allocated to the Company's Group Benefits reporting segment. The Company recognized $ 17 of acquisition related costs in the year of acquisition. These costs are included in insurance operating costs and other expenses in the Consolidated Statement of Operations. The following table presents supplemental pro forma amounts of revenue and net income for the Company in 2017 as though the business was acquired on January 1, 2016. Pro Forma Results (Unaudited) Twelve months ended December 31, 2017 [1] Total Revenue $ 18,899 Net Income $ (3,077 ) [1]Pro forma adjustments include the revenue and earnings of the Aetna U.S. group life and disability business as well as amortization of identifiable intangible assets acquired and the fair value adjustment to acquired insurance reserves. Pro forma adjustments do not include retrospective adjustments to defer and amortize acquisition costs as would be recorded under the Company’s accounting policy. |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | 3 . EARNINGS (LOSS) PER COMMON SHARE Computation of Basic and Diluted Earnings per Common Share For the years ended December 31, (In millions, except for per share data) 2019 2018 2017 Earnings Income (loss) from continuing operations, net of tax $ 2,085 $ 1,485 $ (262 ) Less: Preferred stock dividends 21 6 — Income (loss) from continuing operations, net of tax, available to common stockholders 2,064 1,479 (262 ) Income (loss) from discontinued operations, net of tax, available to common stockholders — 322 (2,869 ) Net income (loss) available to common stockholders $ 2,064 $ 1,801 $ (3,131 ) Shares Weighted average common shares outstanding, basic 360.9 358.4 363.7 Dilutive effect of warrants [1] 0.5 1.9 — Dilutive effect of stock-based awards under compensation plans 3.5 3.8 — Weighted average common shares outstanding and dilutive potential common shares [2] 364.9 364.1 363.7 Earnings per common share Basic Income (loss) from continuing operations, net of tax, available to common stockholders $ 5.72 $ 4.13 $ (0.72 ) Income (loss) from discontinued operations, net of tax, available to common stockholders — 0.90 (7.89 ) Net income (loss) available to common stockholders $ 5.72 $ 5.03 $ (8.61 ) Diluted Income (loss) from continuing operations, net of tax, available to common stockholders $ 5.66 $ 4.06 $ (0.72 ) Income (loss) from discontinued operations, net of tax, available to common stockholders — 0.89 (7.89 ) Net income (loss) available to common stockholders $ 5.66 $ 4.95 $ (8.61 ) [1] On June 26, 2019 the Capital Purchase Program warrants issued in 2009 expired. [2] For additional information, see Note 15 - Equity and Note 19 - Stock Compensation Plans of Notes to Consolidated Financial Statements. Basic earnings per common share is computed based on the weighted average number of common shares outstanding during the year. Diluted earnings per common share includes the dilutive effect of assumed exercise or issuance of warrants and stock-based awards under compensation plans. In periods where a loss from continuing operations available to common stockholders or net loss available to common stockholders is recognized, inclusion of incremental dilutive shares would be antidilutive. Due to the antidilutive impact, such shares are excluded from the diluted earnings per share calculation of income (loss) from continuing operations, net of tax, available to common stockholders and net income (loss) available to common stockholders in such periods. As a result, for the year ended December 31, 2017 , the Company was required to use basic weighted average common shares outstanding in the diluted calculations, since the inclusion of 4.3 million shares for stock compensation plans and 2.5 million shares for warrants would have been antidilutive to the calculations. Under the treasury stock method, for warrants and stock-based awards, shares are assumed to be issued and then reduced for the number of shares repurchaseable with theoretical proceeds at the average market price for the period. Contingently issuable shares are included for the number of shares issuable assuming the end of the reporting period was the end of the contingency period, if dilutive. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 4 . SEGMENT INFORMATION The Company conducts business principally in five reporting segments including Commercial Lines, Personal Lines, Property & Casualty Other Operations, Group Benefits and Hartford Funds, as well as a Corporate category. Over 95% of the Company's revenues are generated in the United States ("U.S."). The remaining revenues are generated in the United Kingdom, continental Europe and other international locations. The Company’s reporting segments, as well as the Corporate category, are as follows: Commercial Lines Commercial Lines provides workers’ compensation, property, automobile, general liability, umbrella, professional liability, bond, marine, livestock and assumed reinsurance to businesses in the U.S. and internationally, along with a variety of customized insurance products and risk management services including professional liability, bond, surety, and specialty casualty coverages. Personal Lines Personal Lines provides standard automobile, homeowners and personal umbrella coverages to individuals across the U.S., including a special program designed exclusively for members of AARP. Property & Casualty Other Operations Property & Casualty Other Operations includes certain property and casualty operations, managed by the Company, that have discontinued writing new business and includes substantially all of the Company’s asbestos and environmental exposures. Group Benefits Group Benefits provides employers, associations and financial institutions with group life, accident and disability coverage, along with other products and services, including voluntary benefits, and group retiree health. Hartford Funds Hartford Funds offers investment products for retail and retirement accounts and provides investment management and administrative services such as product design, implementation and oversight. This business also manages a portion of the mutual funds which support the variable annuity products within the life and annuity business sold in May 2018. Corporate The Company includes in the Corporate category discontinued operations related to the life and annuity business sold in May 2018, reserves for run-off structured settlement and terminal funding agreement liabilities, capital raising activities (including debt financing and related interest expense), transaction expenses incurred in connection with an acquisition, certain purchase accounting adjustments related to goodwill and other expenses not allocated to the reporting segments. Corporate also includes investment management fees and expenses related to managing third party business, including management of the invested assets of Talcott Resolution Life, Inc. and its subsidiaries ("Talcott Resolution"). In addition, Corporate includes a 9.7% ownership interest in the legal entity that acquired the life and annuity business sold in 2018. For further discussion of continued involvement in the life and annuity business sold, see Note 21 - Business Dispositions and Discontinued Operations of Notes to Consolidated Financial Statements. Financial Measures and Other Segment Information Certain transactions between segments occur during the year that primarily relate to tax settlements, insurance coverage, expense reimbursements, services provided, investment transfers and capital contributions. In addition, certain inter-segment transactions occur that relate to interest income on allocated surplus. Consolidated net investment income is unaffected by such transactions. Revenues For the years ended December 31, 2019 2018 2017 Earned premiums and fee income: Commercial Lines Workers’ compensation $ 3,314 $ 3,341 $ 3,287 Liability 1,064 653 604 Marine 147 — — Package business 1,471 1,364 1,301 Property 728 618 604 Professional liability 447 254 246 Bond 261 241 230 Assumed reinsurance 180 — — Automobile 713 610 630 Total Commercial Lines 8,325 7,081 6,902 Personal Lines Automobile 2,248 2,398 2,617 Homeowners 987 1,041 1,117 Total Personal Lines [1] 3,235 3,439 3,734 Property & Casualty Other Operations 2 — — Group Benefits Group disability 2,828 2,746 1,718 Group life 2,521 2,611 1,745 Other 254 241 214 Total Group Benefits 5,603 5,598 3,677 Hartford Funds Mutual fund and ETP 907 932 888 Talcott Resolution life and annuity separate accounts [2] 92 100 104 Total Hartford Funds [3] 999 1,032 992 Corporate 60 32 4 Total earned premiums and fee income 18,224 17,182 15,309 Total net investment income 1,951 1,780 1,603 Net realized capital gains (losses) 395 (112 ) 165 Other revenues 170 105 85 Total revenues $ 20,740 $ 18,955 $ 17,162 [1] For 2019 , 2018 and 2017 , AARP members accounted for earned premiums of $2.9 billion , $3.0 billion and $3.2 billion , respectively. [2] Represents revenues earned on the life and annuity separate account AUM sold in May 2018 that is still managed by the Company's Hartford Funds segment. [3] Excludes distribution costs of $188 for the year ended December 31, 2017, that were previously netted against fee income and are now presented gross in insurance operating costs and other expenses. Net Income (Loss) For the years ended December 31, 2019 2018 2017 Commercial Lines $ 1,192 $ 1,212 $ 865 Personal Lines 318 (32 ) (9 ) Property & Casualty Other Operations 61 15 69 Group Benefits 536 340 294 Hartford Funds 149 148 106 Corporate (171 ) 124 (4,456 ) Net income (loss) $ 2,085 $ 1,807 $ (3,131 ) Preferred stock dividends 21 6 — Net income (loss) available to common stockholders $ 2,064 $ 1,801 $ (3,131 ) Net Investment Income For the years ended December 31, 2019 2018 2017 Commercial Lines $ 1,129 $ 997 $ 949 Personal Lines 179 155 141 Property & Casualty Other Operations 84 90 106 Group Benefits 486 474 381 Hartford Funds 7 5 3 Corporate 66 59 23 Net investment income $ 1,951 $ 1,780 $ 1,603 Amortization of Deferred Policy Acquisition Costs For the years ended December 31, 2019 2018 2017 Commercial Lines $ 1,296 $ 1,048 $ 1,009 Personal Lines 259 275 309 Group Benefits 54 45 33 Hartford Funds 12 16 21 Corporate 1 — — Total amortization of deferred policy acquisition costs $ 1,622 $ 1,384 $ 1,372 Amortization of Other Intangible Assets For the years ended December 31, 2019 2018 2017 Commercial Lines $ 18 $ 4 $ 1 Personal Lines 6 4 4 Group Benefits 41 60 9 Corporate 1 — — Total amortization of other intangible assets $ 66 $ 68 $ 14 Income Tax Expense (Benefit) For the years ended December 31, 2019 2018 2017 Commercial Lines $ 270 $ 267 $ 377 Personal Lines 76 (19 ) 26 Property & Casualty Other Operations 12 (7 ) 24 Group Benefits 126 84 38 Hartford Funds 37 38 63 Corporate (46 ) (95 ) 457 Total income tax expense $ 475 $ 268 $ 985 Assets As of December 31, 2019 2018 Commercial Lines $ 42,041 $ 31,693 Personal Lines 6,310 6,180 Property & Casualty Other Operations 3,560 3,351 Group Benefits 14,595 14,114 Hartford Funds 634 583 Corporate 3,677 6,386 Total assets $ 70,817 $ 62,307 Revenue from Non-Insurance Contracts with Customers For the years ended December 31, Revenue Line Item 2019 2018 2017 Commercial Lines Installment billing fees Fee income $ 35 $ 34 $ 37 Personal Lines Installment billing fees Fee income 37 40 44 Insurance servicing revenues Other revenues 83 84 85 Group Benefits Administrative services Fee income 180 175 91 Hartford Funds Advisor, distribution and other management fees Fee income 911 947 897 Other fees Fee income 88 85 95 Corporate Investment management and other fees Fee income 50 32 4 Transition service revenues Other revenues 20 21 — Total non-insurance revenues with customers $ 1,404 $ 1,418 $ 1,253 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5 . FAIR VALUE MEASUREMENTS The Company carries certain financial assets and liabilities at estimated fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants. Our fair value framework includes a hierarchy that gives the highest priority to the use of quoted prices in active markets, followed by the use of market observable inputs, followed by the use of unobservable inputs. The fair value hierarchy levels are as follows: Level 1 Fair values based primarily on unadjusted quoted prices for identical assets, or liabilities, in active markets that the Company has the ability to access at the measurement date. Level 2 Fair values primarily based on observable inputs, other than quoted prices included in Level 1, or based on prices for similar assets and liabilities. Level 3 Fair values derived when one or more of the significant inputs are unobservable (including assumptions about risk). With little or no observable market, the determination of fair values uses considerable judgment and represents the Company’s best estimate of an amount that could be realized in a market exchange for the asset or liability. Also included are securities that are traded within illiquid markets and/or priced by independent brokers. The Company will classify the financial asset or liability by level based upon the lowest level input that is significant to the determination of the fair value. In most cases, both observable inputs (e.g., changes in interest rates) and unobservable inputs (e.g., changes in risk assumptions) are used to determine fair values that the Company has classified within Level 3. Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of December 31, 2019 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets accounted for at fair value on a recurring basis Fixed maturities, AFS Asset backed securities ("ABS") $ 1,476 $ — $ 1,461 $ 15 Collateralized loan obligations ("CLOs") 2,183 — 2,088 95 Commercial mortgage-backed securities ("CMBS") 4,338 — 4,329 9 Corporate 17,396 — 16,664 732 Foreign government/government agencies 1,123 — 1,120 3 Municipal 9,498 — 9,498 — Residential mortgage-backed securities ("RMBS") 4,869 — 4,309 560 U.S. Treasuries 1,265 330 935 — Total fixed maturities 42,148 330 40,404 1,414 Fixed maturities, FVO 11 — 11 — Equity securities, at fair value 1,657 1,401 183 73 Derivative assets Credit derivatives 11 — 11 — Interest rate derivatives 1 — 1 — Total derivative assets [1] 12 — 12 — Short-term investments 2,921 1,028 1,878 15 Total assets accounted for at fair value on a recurring basis $ 46,749 $ 2,759 $ 42,488 $ 1,502 Liabilities accounted for at fair value on a recurring basis Derivative liabilities Credit derivatives $ (1 ) $ — $ (1 ) $ — Equity derivatives (15 ) — — (15 ) Foreign exchange derivatives (2 ) — (2 ) — Interest rate derivatives (60 ) — (60 ) — Total derivative liabilities [2] (78 ) — (63 ) (15 ) Contingent consideration [3] (22 ) — — (22 ) Total liabilities accounted for at fair value on a recurring basis $ (100 ) $ — $ (63 ) $ (37 ) Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of December 31, 2018 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets accounted for at fair value on a recurring basis Fixed maturities, AFS ABS $ 1,276 $ — $ 1,266 $ 10 CLO 1,437 — 1,337 100 CMBS 3,552 — 3,540 12 Corporate 13,398 — 12,878 520 Foreign government/government agencies 847 — 844 3 Municipal 10,346 — 10,346 — RMBS 3,279 — 2,359 920 U.S. Treasuries 1,517 330 1,187 — Total fixed maturities 35,652 330 33,757 1,565 Fixed maturities, FVO 22 — 22 — Equity securities, at fair value 1,214 1,093 44 77 Derivative assets Credit derivatives 5 — 5 — Equity derivatives 3 — — 3 Foreign exchange derivatives (2 ) — (2 ) — Interest rate derivatives 1 — 1 — Total derivative assets [1] 7 — 4 3 Short-term investments 4,283 1,039 3,244 — Total assets accounted for at fair value on a recurring basis $ 41,178 $ 2,462 $ 37,071 $ 1,645 Liabilities accounted for at fair value on a recurring basis Derivative liabilities Credit derivatives $ (2 ) $ — $ (2 ) $ — Equity derivatives 1 — 1 — Foreign exchange derivatives (5 ) — (5 ) — Interest rate derivatives (62 ) — (63 ) 1 Total derivative liabilities [2] (68 ) — (69 ) 1 Contingent consideration [3] (35 ) — — (35 ) Total liabilities accounted for at fair value on a recurring basis $ (103 ) $ — $ (69 ) $ (34 ) [1] Includes derivative instruments in a net positive fair value position after consideration of the accrued interest and impact of collateral posting requirements which may be imposed by agreements and applicable law. See footnote 2 to this table for derivative liabilities. [2] Includes derivative instruments in a net negative fair value position (derivative liability) after consideration of the accrued interest and impact of collateral posting requirements which may be imposed by agreements and applicable law. [3] For additional information see the Contingent Consideration section below. In connection with the acquisition of Navigators Group , the Company has overseas deposits in Other Invested Assets of $38 as of December 31, 2019 , which are measured at fair value using the net asset value as a practical expedient. There were no overseas deposits held as of December 31, 2018 . Fixed Maturities, Equity Securities, Short-term Investments, and Derivatives Valuation Techniques The Company generally determines fair values using valuation techniques that use prices, rates, and other relevant information evident from market transactions involving identical or similar instruments. Valuation techniques also include, where appropriate, estimates of future cash flows that are converted into a single discounted amount using current market expectations. The Company uses a "waterfall" approach comprised of the following pricing sources and techniques, which are listed in priority order: • Quoted prices, unadjusted, for identical assets or liabilities in active markets, which are classified as Level 1. • Prices from third-party pricing services, which primarily utilize a combination of techniques. These services utilize recently reported trades of identical, similar, or benchmark securities making adjustments for market observable inputs available through the reporting date. If there are no recently reported trades, they may use a discounted cash flow technique to develop a price using expected cash flows based upon the anticipated future performance of the underlying collateral discounted at an estimated market rate. Both techniques develop prices that consider the time value of future cash flows and provide a margin for risk, including liquidity and credit risk. Most prices provided by third-party pricing services are classified as Level 2 because the inputs used in pricing the securities are observable. However, some securities that are less liquid or trade less actively are classified as Level 3. Additionally, certain long-dated securities, such as municipal securities and bank loans, include benchmark interest rate or credit spread assumptions that are not observable in the marketplace and are thus classified as Level 3. • Internal matrix pricing, which is a valuation process internally developed for private placement securities for which the Company is unable to obtain a price from a third-party pricing service. Internal pricing matrices determine credit spreads that, when combined with risk-free rates, are applied to contractual cash flows to develop a price. The Company develops credit spreads using market based data for public securities adjusted for credit spread differentials between public and private securities, which are obtained from a survey of multiple private placement brokers. The market-based reference credit spread considers the issuer’s financial strength and term to maturity, using an independent public security index and trade information, while the credit spread differential considers the non-public nature of the security. Securities priced using internal matrix pricing are classified as Level 2 because the inputs are observable or can be corroborated with observable data. • Independent broker quotes, which are typically non-binding, use inputs that can be difficult to corroborate with observable market based data. Brokers may use present value techniques using assumptions specific to the security types, or they may use recent transactions of similar securities. Due to the lack of transparency in the process that brokers use to develop prices, valuations that are based on independent broker quotes are classified as Level 3. The fair value of derivative instruments is determined primarily using a discounted cash flow model or option model technique and incorporates counterparty credit risk. In some cases, quoted market prices for exchange-traded and OTC-cleared derivatives may be used and in other cases independent broker quotes may be used. The pricing valuation models primarily use inputs that are observable in the market or can be corroborated by observable market data. The valuation of certain derivatives may include significant inputs that are unobservable, such as volatility levels, and reflect the Company’s view of what other market participants would use when pricing such instruments. Valuation Controls The process for determining the fair value of investments is monitored by the Valuation Committee, which is a cross-functional group of senior management within the Company. The purpose of the Valuation Committee is to provide oversight of the pricing policy, procedures and controls, including approval of valuation methodologies and pricing sources. The Valuation Committee reviews market data trends, pricing statistics and trading statistics to ensure that prices are reasonable and consistent with our fair value framework. Controls and procedures used to assess third-party pricing services are reviewed by the Valuation Committee, including the results of annual due-diligence reviews. Controls include, but are not limited to, reviewing daily and monthly price changes, stale prices, and missing prices and comparing new trade prices to third-party pricing services, weekly price changes to published bond prices of a corporate bond index, and daily OTC derivative market valuations to counterparty valuations. The Company has a dedicated pricing unit that works with trading and investment professionals to challenge the price received by a third party pricing source if the Company believes that the valuation received does not accurately reflect the fair value. New valuation models and changes to current models require approval by the Valuation Committee. In addition, the Company’s enterprise-wide Operational Risk Management function provides an independent review of the suitability and reliability of model inputs, as well as an analysis of significant changes to current models. Valuation Inputs Quoted prices for identical assets in active markets are considered Level 1 and consist of on-the-run U.S. Treasuries, money market funds, exchange-traded equity securities, open-ended mutual funds, certain short-term investments, and exchange traded futures and option contracts. Valuation Inputs Used in Levels 2 and 3 Measurements for Securities and Derivatives Level 2 Primary Observable Inputs Level 3 Primary Unobservable Inputs Fixed Maturity Investments Structured securities (includes ABS, CLOs, CMBS and RMBS) • Benchmark yields and spreads • Monthly payment information • Collateral performance, which varies by vintage year and includes delinquency rates, loss severity rates and refinancing assumptions • Credit default swap indices Other inputs for ABS, CLOs, and RMBS: • Estimate of future principal prepayments, derived from the characteristics of the underlying structure • Prepayment speeds previously experienced at the interest rate levels projected for the collateral • Independent broker quotes • Credit spreads beyond observable curve • Interest rates beyond observable curve Other inputs for less liquid securities or those that trade less actively, including subprime RMBS: • Estimated cash flows • Credit spreads, which include illiquidity premium • Constant prepayment rates • Constant default rates • Loss severity Corporates • Benchmark yields and spreads • Reported trades, bids, offers of the same or similar securities • Issuer spreads and credit default swap curves Other inputs for investment grade privately placed securities that utilize internal matrix pricing : • Credit spreads for public securities of similar quality, maturity, and sector, adjusted for non-public nature • Independent broker quotes • Credit spreads beyond observable curve • Interest rates beyond observable curve Other inputs for below investment grade privately placed securities and private bank loans: • Independent broker quotes • Credit spreads for public securities of similar quality, maturity, and sector, adjusted for non-public nature U.S Treasuries, Municipals, and Foreign government/government agencies • Benchmark yields and spreads • Issuer credit default swap curves • Political events in emerging market economies • Municipal Securities Rulemaking Board reported trades and material event notices • Issuer financial statements • Credit spreads beyond observable curve • Interest rates beyond observable curve Equity Securities • Quoted prices in markets that are not active • For privately traded equity securities, internal discounted cash flow models utilizing earnings multiples or other cash flow assumptions that are not observable Short-term Investments • Benchmark yields and spreads • Reported trades, bids, offers • Issuer spreads and credit default swap curves • Material event notices and new issue money market rates • Independent broker quotes Derivatives Credit derivatives • Swap yield curve • Credit default swap curves Not applicable Equity derivatives • Equity index levels • Swap yield curve • Independent broker quotes • Equity volatility Foreign exchange derivatives • Swap yield curve • Currency spot and forward rates • Cross currency basis curves Not applicable Interest rate derivatives • Swap yield curve • Independent broker quotes • Interest rate volatility Significant Unobservable Inputs for Level 3 - Securities Assets accounted for at fair value on a recurring basis Fair Value Predominant Valuation Technique Significant Unobservable Input Minimum Maximum Weighted Average [1] Impact of Increase in Input on Fair Value [2] As of December 31, 2019 CLOs [3] $ 95 Discounted cash flows Spread 246 bps 246 bps 246 bps Decrease CMBS [3] $ 1 Discounted cash flows Spread (encompasses prepayment, default risk and loss severity) 9 bps 1,832 bps 161 bps Decrease Corporate [4] $ 633 Discounted cash flows Spread 93 bps 788 bps 236 bps Decrease RMBS [3] $ 560 Discounted cash flows Spread [6] 5 bps 233 bps 79 bps Decrease Constant prepayment rate [6] —% 11% 6% Decrease [5] Constant default rate [6] 1% 6% 3% Decrease Loss severity [6] —% 100% 70% Decrease As of December 31, 2018 CMBS [3] $ 2 Discounted cash flows Spread (encompasses prepayment, default risk and loss severity) 9 bps 1,040 bps 182 bps Decrease Corporate [4] $ 274 Discounted cash flows Spread 145 bps 1,175 bps 263 bps Decrease RMBS [3] $ 815 Discounted cash flows Spread [6] 12 bps 215 bps 86 bps Decrease Constant prepayment rate [6] 1% 15% 6% Decrease [5] Constant default rate [6] 1% 8% 3% Decrease Loss severity [6] —% 100% 61% Decrease [1] The weighted average is determined based on the fair value of the securities. [2] Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table. [3] Excludes securities for which the Company bases fair value on broker quotations. [4] Excludes securities for which the Company bases fair value on broker quotations; however, included are broker priced lower-rated private placement securities for which the Company receives spread and yield information to corroborate the fair value. [5] Decrease for above market rate coupons and increase for below market rate coupons. [6] Generally, a change in the assumption used for the constant default rate would have been accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumption used for constant prepayment rate and would have resulted in wider spreads. Significant Unobservable Inputs for Level 3 - Derivatives Fair Value Predominant Valuation Technique Significant Unobservable Input Minimum Maximum Weighted Average [1] Impact of Increase in Input on Fair Value [2] As of December 31, 2019 Equity options $ (15 ) Option model Equity volatility 13 % 28 % 17 % Increase As of December 31, 2018 Interest rate swaptions [3] $ 1 Option model Interest rate volatility 3 % 3 % 3 % Increase Equity options $ 3 Option model Equity volatility 19 % 21 % 20 % Increase [1] The weighted average is determined based on the fair value of the derivatives. [2] Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table. Changes are based on long positions, unless otherwise noted. Changes in fair value will be inversely impacted for short positions. [3] The swaptions presented are purchased options that have the right to enter into a pay-fixed swap. The tables above exclude certain securities for which fair values are predominately based on independent broker quotes. While the Company does not have access to the significant unobservable inputs that independent brokers may use in their pricing process, the Company believes brokers likely use inputs similar to those used by the Company and third-party pricing services to price similar instruments. As such, in their pricing models, brokers likely use estimated loss severity rates, prepayment rates, constant default rates and credit spreads. Therefore, similar to non-broker priced securities, increases in these inputs would generally cause fair values to decrease. For the year ended December 31, 2019 , no significant adjustments were made by the Company to broker prices received. Contingent Consideration The acquisition of Lattice Strategies LLC ("Lattice") on July 29, 2016 requires the Company to make payments to former owners of Lattice of up to $60 contingent upon growth in ETP AUM over a period of four years beginning on the date of acquisition. The contingent consideration is measured at fair value on a quarterly basis by projecting future eligible ETP AUM over the contingency period to estimate the amount of expected payout. The future expected payout is discounted back to the valuation date using a risk-adjusted discount rate of 11.8% . The risk-adjusted discount rate is an internally generated and significant unobservable input to fair value. The contingency period for ETP AUM growth ends July 29, 2020 and management adjusts the fair value of the contingent consideration when it revises its projection of ETP AUM for the acquired business. Before discounting to fair value, the Company estimates a total contingent consideration payout of $43 , of which $20 was paid in the twelve months of 2019 with ETP AUM of $3.3 billion as of December 31, 2019. Accordingly, as of December 31, 2019, the fair value of $22 reflects remaining consideration payable of $23 , assuming ETP AUM for the acquired business grows to approximately $4.1 billion over the contingency period. Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs The Company uses derivative instruments to manage the risk associated with certain assets and liabilities. However, the derivative instrument may not be classified with the same fair value hierarchy level as the associated asset or liability. Therefore, the realized and unrealized gains and losses on derivatives reported in the Level 3 rollforward may be offset by realized and unrealized gains and losses of the associated assets and liabilities in other line items of the financial statements. Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Year Ended December 31, 2019 Total realized/unrealized gains (losses) Fair value as of January 1, 2019 Included in net income [1] Included in OCI [2] Purchases Settlements Sales Transfers into Level 3 [3] Transfers out of Level 3 [3] Fair value as of December 31, 2019 Assets Fixed Maturities, AFS ABS $ 10 $ — $ — $ 20 $ (1 ) $ — $ — $ (14 ) $ 15 CLOs 100 — — 329 (127 ) (6 ) — (201 ) 95 CMBS 12 — 1 34 (4 ) — — (34 ) 9 Corporate 520 (4 ) 16 354 (59 ) (88 ) 61 (68 ) 732 Foreign Govt./Govt. Agencies 3 — — — — — — — 3 RMBS 920 1 (8 ) 134 (214 ) (35 ) — (238 ) 560 Total Fixed Maturities, AFS 1,565 (3 ) 9 871 (405 ) (129 ) 61 (555 ) 1,414 Equity Securities, at fair value 77 — — 9 — (13 ) — — 73 Derivatives, net [4] Interest rate 1 (1 ) — — — — — — — Total Derivatives, net [4] 1 (1 ) — — — — — — — Short-term investments — — — 15 — — — — 15 Total Assets 1,643 (4 ) 9 895 (405 ) (142 ) 61 (555 ) 1,502 Liabilities Derivatives, net [4] Equity 3 (18 ) — — — — — — (15 ) Total Derivatives, net [4] 3 (18 ) — — — — — — (15 ) Contingent Consideration (35 ) (7 ) — — 20 — — — (22 ) Total Liabilities $ (32 ) $ (25 ) $ — $ — $ 20 $ — $ — $ — $ (37 ) Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Year Ended December 31, 2018 Total realized/unrealized gains (losses) Fair value as of January 1, 2018 Included in net income [1] Included in OCI [2] Purchases Settlements Sales Transfers into Level 3 [3] Transfers out of Level 3 [3] Fair value as of December 31, 2018 Assets Fixed Maturities, AFS ABS $ 19 $ — $ — $ 90 $ (5 ) $ (4 ) $ 12 $ (102 ) $ 10 CLOs 95 — — 330 — (13 ) — (312 ) 100 CMBS 69 (1 ) — 25 (14 ) (8 ) — (59 ) 12 Corporate 520 1 (18 ) 197 (36 ) (52 ) 31 (123 ) 520 Foreign Govt./Govt. Agencies 2 — — 1 — — — — 3 Municipal 17 — (1 ) — — (1 ) — (15 ) — RMBS 1,230 — (16 ) 273 (319 ) (52 ) 4 (200 ) 920 Total Fixed Maturities, AFS 1,952 — (35 ) 916 (374 ) (130 ) 47 (811 ) 1,565 Equity Securities, at fair value 76 29 — 12 — (40 ) — — 77 Derivatives, net [4] Equity 1 3 — 1 — (2 ) — — 3 Interest rate 1 — — — — — — — 1 Total Derivatives, net [4] 2 3 — 1 — (2 ) — — 4 Total Assets 2,030 32 (35 ) 929 (374 ) (172 ) 47 (811 ) 1,646 Liabilities Contingent Considerations (29 ) (6 ) — — — — — — (35 ) Total Liabilities $ (29 ) $ (6 ) $ — $ — $ — $ — $ — $ — $ (35 ) [1] Amounts in these columns are generally reported in net realized capital gains (losses). All amounts are before income taxes. [2] All amounts are before income taxes. [3] Transfers in and/or (out) of Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs. [4] Derivative instruments are reported in this table on a net basis for asset (liability) positions and reported in the Consolidated Balance Sheets in other investments and other liabilities. Changes in Unrealized Gains (Losses) for Financial Instruments Classified as Level 3 Still Held at Year End December 31, 2019 2018 Changes in Unrealized Gain/(Loss) included in Net Income [1] [2] Changes in Unrealized Gain/(Loss) included in OCI [3] Changes in Unrealized Gain/(Loss) included in Net Income [1] [2] Changes in Unrealized Gain/(Loss) included in OCI [3] Assets Fixed Maturities, AFS ABS $ — $ — $ — $ 1 CMBS — 1 (1 ) 28 Corporate (2 ) 15 — (42 ) Foreign Govt./Govt. Agencies — 1 — — Municipal — — — 24 RMBS — (7 ) — 17 Total Fixed Maturities, AFS (2 ) 10 (1 ) 28 Equity Securities, at fair value 1 — — — Derivatives, net Equity (18 ) — 1 Interest rate (1 ) — — — Total Derivatives, net (19 ) — 1 — Total Assets (20 ) 10 — 28 Liabilities Contingent Consideration (7 ) (6 ) Total Liabilities $ (7 ) $ — $ (6 ) $ — [1] All amounts in these rows are reported in net realized capital gains (losses). All amounts are before income taxes. [2] Amounts presented are for Level 3 only and therefore may not agree to other disclosures included herein. [3] Changes in unrealized gain/(loss) on fixed maturities, AFS are reported in changes in net unrealized gain on securities in the Consolidated Statements of Comprehensive Income. Changes in interest rate derivatives are reported in changes in net gain on cash flow hedging instruments in the Consolidated Statements of Comprehensive Income. Fair Value Option The Company has elected the fair value option for certain RMBS that contain embedded credit derivatives with underlying credit risk. These securities are included within Fixed Maturities, FVO on the Consolidated Balance Sheets and changes in the fair value of these securities are reported in net realized capital gains and losses. As of December 31, 2019 and December 31, 2018 , the fair value of assets and liabilities using the fair value option was $11 and $22 , respectively, within the residential real estate sector. For the year-ended December 31, 2019 , there were no realized capital gains (losses) related to the fair value of assets using the fair value option. For the year-ended December 31, 2018 , the realized capital gains (losses) related to the fair value of assets using the fair value option were $(1) within the residential real estate sector. For the year-ended December 31, 2017 , the income earned from FVO and the changes recorded in net realized capital gains (losses) were driven by corporate bond and equity securities of $(1) and $1 , respectively. Financial Instruments Not Carried at Fair Value Financial Assets and Liabilities Not Carried at Fair Value December 31, 2019 December 31, 2018 Fair Value Hierarchy Level Carrying Amount Fair Value Fair Value Hierarchy Level Carrying Amount Fair Value Assets Mortgage loans Level 3 $ 4,215 $ 4,350 Level 3 $ 3,704 $ 3,746 Liabilities Other policyholder funds and benefits payable Level 3 $ 763 $ 765 Level 3 $ 774 $ 775 Senior notes [1] Level 2 $ 3,759 $ 4,456 Level 2 $ 3,589 $ 3,887 Junior subordinated debentures [1] Level 2 $ 1,089 $ 1,153 Level 2 $ 1,089 $ 1,052 |
Investments
Investments | 12 Months Ended |
Dec. 31, 2019 | |
Investments [Abstract] | |
Investments | 6 . INVESTMENTS Net Investment Income For the years ended December 31, (Before tax) 2019 2018 2017 Fixed maturities [1] $ 1,559 $ 1,459 $ 1,303 Equity securities 46 32 24 Mortgage loans 165 141 124 Limited partnerships and other alternative investments 232 205 174 Other investments [2] 32 20 49 Investment expenses (83 ) (77 ) (71 ) Total net investment income $ 1,951 $ 1,780 $ 1,603 [1] Includes net investment income on short-term investments. [2] Includes income from derivatives that hedge fixed maturities and qualify for hedge accounting. Net Realized Capital Gains (Losses) For the years ended December 31, (Before tax) 2019 2018 2017 Gross gains on sales $ 234 $ 114 $ 275 Gross losses on sales (56 ) (172 ) (113 ) Equity securities [1] 254 (48 ) — Net OTTI losses recognized in earnings (3 ) (1 ) (8 ) Valuation allowances on mortgage loans 1 — (1 ) Other, net [2] (35 ) (5 ) 12 Net realized capital gains (losses) $ 395 $ (112 ) $ 165 [1] The net unrealized gain (loss) on equity securities included in net realized capital gains (losses) related to equity securities still held as of December 31, 2019 , were $164 for the year-ended December 31, 2019 . The net unrealized gain (loss) on equity securities included in net realized capital gains (losses) related to equity securities still held as of December 31, 2018 , were $(80) for the year-ended December 31, 2018 . Prior to January 1, 2018, changes in net unrealized gains (losses) on equity securities were included in AOCI. [2] For the years ended December 31, 2019, 2018 and 2017, gains (losses) from transactional foreign currency revaluation were $ (9) , $1 and $14 , respectively. Also includes gains (losses) on non-qualifying derivatives of $(24) , $(12) , and $(6) , respectively for 2019 , 2018 and 2017 . Sales of AFS Securities For the years ended December 31, 2019 2018 2017 Fixed maturities, AFS Sale proceeds $ 14,421 $ 21,327 $ 17,614 Gross gains 233 90 204 Gross losses (56 ) (169 ) (90 ) Equity securities, AFS Sale proceeds $ 607 Gross gains 69 Gross losses (23 ) Sales of AFS securities in 2019 were primarily a result of duration and liquidity management as well as tactical changes to the portfolio as a result of changing market conditions. Recognition and Presentation of Other-Than-Temporary Impairments The Company will record an OTTI for fixed maturities if the Company intends to sell or it is more likely than not that the Company will be required to sell the security before a recovery in value. A corresponding charge is recorded in net realized capital losses equal to the difference between the fair value and amortized cost basis of the security. The Company will also record an OTTI for those fixed maturities for which the Company does not expect to recover the entire amortized cost basis. For these securities, the excess of the amortized cost basis over its fair value is separated into the portion representing a credit OTTI, which is recorded in net realized capital losses, and the remaining non-credit amount, which is recorded in OCI. The credit OTTI amount is the excess of its amortized cost basis over the Company’s best estimate of discounted expected future cash flows. The non-credit amount is the excess of the best estimate of the discounted expected future cash flows over the fair value. The Company’s best estimate of discounted expected future cash flows becomes the new cost basis and accretes prospectively into net investment income over the estimated remaining life of the security. Developing the Company’s best estimate of expected future cash flows is a quantitative and qualitative process that incorporates information received from third-party sources along with certain internal assumptions regarding the future performance. The Company's considerations include, but are not limited to, (a) changes in the financial condition of the issuer and the underlying collateral, (b) whether the issuer is current on contractually obligated interest and principal payments, (c) credit ratings, (d) payment structure of the security and (e) the extent to which the fair value has been less than the amortized cost of the security. For non-structured securities, assumptions include, but are not limited to, economic and industry-specific trends and fundamentals, security-specific developments, industry earnings multiples and the issuer’s ability to restructure and execute asset sales. For structured securities, assumptions include, but are not limited to, various performance indicators such as historical and projected default and recovery rates, credit ratings, current and projected delinquency rates, loan-to-value ("LTV") ratios, average cumulative collateral loss rates that vary by vintage year, prepayment speeds, and property value declines. These assumptions require the use of significant management judgment and include the probability of issuer default and estimates regarding timing and amount of expected recoveries which may include estimating the underlying collateral value. Prior to January 1, 2018, the Company recorded an OTTI for certain equity securities with debt-like characteristics if the Company intended to sell or it was more likely than not that the Company was required to sell the security before a recovery in value as well as for those equity securities for which the Company did not expect to recover the entire amortized cost basis. The Company also recorded an OTTI for equity securities where the decline in the fair value was deemed to be other-than-temporary. Impairments in Earnings by Type For the years ended December 31, 2019 2018 2017 Credit impairments $ 3 $ 1 $ 2 Impairments on equity securities 6 Total impairments $ 3 $ 1 $ 8 Cumulative Credit Impairments For the years ended December 31, (Before tax) 2019 2018 2017 Balance as of beginning of period $ (19 ) $ (25 ) $ (110 ) Additions for credit impairments recognized on [1]: Securities not previously impaired (3 ) — (1 ) Securities previously impaired — (1 ) (1 ) Reductions for credit impairments previously recognized on: Securities that matured or were sold during the period 3 7 76 Securities due to an increase in expected cash flows — — 11 Balance as of end of period $ (19 ) $ (19 ) $ (25 ) [1] These additions are included in the net OTTI losses recognized in earnings in the Consolidated Statements of Operations. Available-for-Sale Securities AFS Securities by Type December 31, 2019 December 31, 2018 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Non- Credit OTTI [1] Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Non- Credit OTTI [1] ABS $ 1,461 $ 18 $ (3 ) $ 1,476 $ — $ 1,272 $ 5 $ (1 ) $ 1,276 $ — CLOs 2,186 5 (8 ) 2,183 — 1,455 2 (20 ) 1,437 — CMBS 4,210 141 (13 ) 4,338 (4 ) 3,581 35 (64 ) 3,552 (5 ) Corporate 16,435 986 (25 ) 17,396 — 13,696 148 (446 ) 13,398 — Foreign govt./govt. agencies 1,057 66 — 1,123 — 866 7 (26 ) 847 — Municipal 8,763 737 (2 ) 9,498 — 9,972 421 (47 ) 10,346 — RMBS 4,775 97 (3 ) 4,869 — 3,270 44 (35 ) 3,279 — U.S. Treasuries 1,191 75 (1 ) 1,265 — 1,491 41 (15 ) 1,517 — Total fixed maturities, AFS 40,078 2,125 (55 ) 42,148 (4 ) 35,603 703 (654 ) 35,652 (5 ) [1] Represents the amount of cumulative non-credit OTTI losses recognized in OCI on securities that also had credit impairments. These losses are included in gross unrealized losses as of December 31, 2019 and 2018 . Fixed maturities, AFS, by Contractual Maturity Year December 31, 2019 December 31, 2018 Amortized Cost Fair Value Amortized Cost Fair Value One year or less $ 1,082 $ 1,090 $ 999 $ 1,002 Over one year through five years 7,200 7,401 5,786 5,791 Over five years through ten years 7,395 7,803 6,611 6,495 Over ten years 11,769 12,988 12,629 12,820 Subtotal 27,446 29,282 26,025 26,108 Mortgage-backed and asset-backed securities 12,632 12,866 9,578 9,544 Total fixed maturities, AFS $ 40,078 $ 42,148 $ 35,603 $ 35,652 Estimated maturities may differ from contractual maturities due to security call or prepayment provisions. Due to the potential for variability in payment speeds (i.e. prepayments or extensions), mortgage-backed and asset-backed securities are not categorized by contractual maturity. Concentration of Credit Risk The Company aims to maintain a diversified investment portfolio including issuer, sector and geographic stratification, where applicable, and has established certain exposure limits, diversification standards and review procedures to mitigate credit risk. The Company had no investment exposure to any credit concentration risk of a single issuer greater than 10% of the Company's stockholders' equity , other than the U.S. government and certain U.S. government agencies as of December 31, 2019 or December 31, 2018 . As of December 31, 2019 , other than U.S. government and certain U.S. government agencies, the Company’s three largest exposures by issuer were the Government of United Kingdom , New York State Dormitory Authority , and the Wells Fargo & Company each of which comprised less than 1% of total invested assets. As of December 31, 2018 , other than U.S. government and certain U.S. government agencies, the Company’s three largest exposures by issuer were New York State Dormitory Authority , Commonwealth of Massachusetts , and the New York City Transitional Finance Authority each of which comprised less than 1% of total invested assets. The Company’s three largest exposures by sector as of December 31, 2019 were the municipal , RMBS , and CMBS sectors which comprised approximately 18% , 9% and 8% , respectively, of total invested assets. The Company’s three largest exposures by sector as of December 31, 2018 were municipal securities, CMBS, and the financial services sectors which comprised approximately 22% , 8% and 7% , respectively, of total invested assets. Unrealized Losses on AFS Securities Unrealized Loss Aging for AFS Securities by Type and Length of Time as of December 31, 2019 Less Than 12 Months 12 Months or More Total Amortized Cost Fair Value Unrealized Losses Amortized Cost Fair Value Unrealized Losses Amortized Cost Fair Value Unrealized Losses ABS $ 401 $ 398 $ (3 ) $ 9 $ 9 $ — $ 410 $ 407 $ (3 ) CLOs 681 679 (2 ) 929 923 (6 ) 1,610 1,602 (8 ) CMBS 545 538 (7 ) 26 20 (6 ) 571 558 (13 ) Corporate 798 789 (9 ) 344 328 (16 ) 1,142 1,117 (25 ) Foreign govt./govt. agencies 101 101 — 29 29 — 130 130 — Municipal 224 222 (2 ) — — — 224 222 (2 ) RMBS 617 614 (3 ) 68 68 — 685 682 (3 ) U.S. Treasuries 88 88 — 35 34 (1 ) 123 122 (1 ) Total fixed maturities, AFS in an unrealized loss position $ 3,455 $ 3,429 $ (26 ) $ 1,440 $ 1,411 $ (29 ) $ 4,895 $ 4,840 $ (55 ) Unrealized Loss Aging for AFS Securities by Type and Length of Time as of December 31, 2018 Less Than 12 Months 12 Months or More Total Amortized Cost Fair Value Unrealized Losses Amortized Cost Fair Value Unrealized Losses Amortized Cost Fair Value Unrealized Losses ABS $ 566 $ 566 $ — $ 113 $ 112 $ (1 ) $ 679 $ 678 $ (1 ) CLOs 1,358 1,338 (20 ) 7 7 — 1,365 1,345 (20 ) CMBS 896 882 (14 ) 1,129 1,079 (50 ) 2,025 1,961 (64 ) Corporate 7,174 6,903 (271 ) 2,541 2,366 (175 ) 9,715 9,269 (446 ) Foreign govt./govt. agencies 407 391 (16 ) 203 193 (10 ) 610 584 (26 ) Municipal 1,643 1,613 (30 ) 292 275 (17 ) 1,935 1,888 (47 ) RMBS 1,344 1,329 (15 ) 648 628 (20 ) 1,992 1,957 (35 ) U.S. Treasuries 497 492 (5 ) 339 329 (10 ) 836 821 (15 ) Total fixed maturities, AFS in an unrealized loss position 13,885 13,514 (371 ) 5,272 4,989 (283 ) 19,157 18,503 (654 ) As of December 31, 2019 , AFS securities in an unrealized loss position consisted of 871 securities, primarily in the corporate and CMBS sectors, which were depressed primarily due to widening of credit spreads since the securities were purchased. As of December 31, 2019 , 96% of these securities were depressed less than 20% of cost or amortized cost. The decrease in unrealized losses during 2019 was primarily attributable to lower interest rates and tighter credit spreads . Most of the securities depressed for twelve months or more relate to corporate, CMBS, and CLO securities. Corporate, CMBS, and CLO securities were primarily depressed because current market spreads are wider than at the securities' respective purchase dates. Certain other corporate securities were depressed because the securities have floating-rate coupons and have long-dated maturities, and current credit spreads are wider than when these securities were purchased. The Company neither has an intention to sell nor does it expect to be required to sell the securities outlined in the preceding discussion. Mortgage Loans Mortgage Loan Valuation Allowances Mortgage loans are considered to be impaired when management estimates that, based upon current information and events, it is probable that the Company will be unable to collect amounts due according to the contractual terms of the loan agreement. The Company reviews mortgage loans on a quarterly basis to identify potential credit losses. Among other factors, management reviews current and projected macroeconomic trends, such as unemployment rates and property-specific factors such as rental rates, occupancy levels, LTV ratios and debt service coverage ratios (“DSCR”). In addition, the Company considers historical, current and projected delinquency rates and property values. Estimates of collectibility require the use of significant management judgment and include the probability and timing of borrower default and loss severity estimates. In addition, cash flow projections may change based upon new information about the borrower's ability to pay and/or the value of underlying collateral such as changes in projected property value estimates. For mortgage loans that are deemed impaired, a valuation allowance is established for the difference between the carrying amount and estimated fair value. The mortgage loan's estimated fair value is most frequently the Company's share of the fair value of the collateral but may also be the Company’s share of either (a) the present value of the expected future cash flows discounted at the loan’s effective interest rate or (b) the loan’s observable market price. A valuation allowance may be recorded for an individual loan or for a group of loans that have an LTV ratio of 90% or greater, a low DSCR or have other lower credit quality characteristics. Changes in valuation allowances are recorded in net realized capital gains and losses. Interest income on impaired loans is accrued to the extent it is deemed collectible and the borrowers continue to make payments under the original or restructured loan terms. The Company stops accruing interest income on loans when it is probable that the Company will not receive interest and principal payments according to the contractual terms of the loan agreement. The Company resumes accruing interest income when it determines that sufficient collateral exists to satisfy the full amount of the loan principal and interest payments and when it is probable cash will be received in the foreseeable future. Interest income on defaulted loans is recognized when received. As of December 31, 2019 , mortgage loans had an amortized cost of $4.2 billion and carrying value of $4.2 billion , with no valuation allowance. As of December 31, 2018 , mortgage loans had an amortized cost of $3.7 billion and carrying value of $3.7 billion , with a valuation allowance of $1 . As of December 31, 2019 , there were no mortgage loans that had a valuation allowance. As of December 31, 2018 , the carrying value of mortgage loans that had a valuation allowance was $23 . There were no mortgage loans held-for-sale as of both December 31, 2019 and December 31, 2018 . As of December 31, 2019 , the Company had no mortgage loans that have had extensions or restructurings other than what is allowable under the original terms of the contract. The following table presents the activity within the Company’s valuation allowance for mortgage loans. These loans have been evaluated both individually and collectively for impairment. Loans evaluated collectively for impairment are immaterial. Valuation Allowance Activity For the years ended December 31, 2019 2018 2017 Balance as of January 1 $ (1 ) $ (1 ) $ — Reversals/(Additions) 1 — (1 ) Deductions — — — Balance as of December 31 $ — $ (1 ) $ (1 ) The weighted-average LTV ratio of the Company’s mortgage loan portfolio was 52% as of December 31, 2019 , while the weighted-average LTV ratio at origination of these loans was 61% . LTV ratios compare the loan amount to the value of the underlying property collateralizing the loan. The loan collateral values are updated no less than annually through reviews of the underlying properties. Factors considered in estimating property values include, among other things, actual and expected property cash flows, geographic market data and the ratio of the property's net operating income to its value. DSCR compares a property’s net operating income to the borrower’s principal and interest payments. As of December 31, 2019 and December 31, 2018 , the Company held no delinquent commercial mortgages loan past due by 90 days or more. Mortgage Loans Credit Quality December 31, 2019 December 31, 2018 Loan-to-value Carrying Value Avg. Debt-Service Coverage Ratio Carrying Value Avg. Debt-Service Coverage Ratio 65% - 80% 376 1.53x 386 1.60x Less than 65% 3,839 2.56x 3,318 2.59x Total mortgage loans $ 4,215 2.46x $ 3,704 2.49x Mortgage Loans by Region December 31, 2019 December 31, 2018 Carrying Value Percent of Total Carrying Value Percent of Total East North Central $ 270 6.4 % $ 250 6.8 % Middle Atlantic 319 7.5 % 270 7.3 % Mountain 109 2.6 % 30 0.8 % New England 344 8.2 % 330 8.9 % Pacific 906 21.5 % 917 24.8 % South Atlantic 944 22.4 % 712 19.2 % West North Central 46 1.1 % 148 4.0 % West South Central 439 10.4 % 420 11.3 % Other [1] 838 19.9 % 627 16.9 % Total mortgage loans $ 4,215 100.0 % $ 3,704 100.0 % [1] Primarily represents loans collateralized by multiple properties in various regions. Mortgage Loans by Property Type December 31, 2019 December 31, 2018 Carrying Value Percent of Total Carrying Value Percent of Total Commercial Industrial 1,167 27.7 % 1,108 29.9 % Multifamily 1,313 31.2 % 1,138 30.7 % Office 723 17.2 % 708 19.1 % Retail 735 17.4 % 392 10.6 % Single Family 137 3.2 % 82 2.2 % Other 140 3.3 % 276 7.5 % Total mortgage loans $ 4,215 100.0 % $ 3,704 100.0 % Mortgage Servicing The Company originates, sells and services commercial mortgage loans on behalf of third parties and recognizes servicing fee income over the period that services are performed. As of December 31, 2019 , under this program, the Company serviced mortgage loans with a total outstanding principal of $6.4 billion, of which $3.5 billion was serviced on behalf of third parties and $2.9 billion was retained and reported in total investments on the Company's Consolidated Balance Sheets. As of December 31, 2018 , the Company serviced mortgage loans with a total outstanding principal balance of $6.0 billion, of which $3.6 billion was serviced on behalf of third parties and $2.4 billion was retained and reported in total investments on the Company's Consolidated Balance Sheets. Servicing rights are carried at the lower of cost or fair value and were $0 as of December 31, 2019 and 2018 , because servicing fees were market-level fees at origination and remain adequate to compensate the Company for servicing the loans. Variable Interest Entities The Company is engaged with various special purpose entities and other entities that are deemed to be VIEs primarily as an investor through normal investment activities but also as an investment manager. A VIE is an entity that either has investors that lack certain essential characteristics of a controlling financial interest, such as simple majority kick-out rights, or lacks sufficient funds to finance its own activities without financial support provided by other entities. The Company performs ongoing qualitative assessments of its VIEs to determine whether the Company has a controlling financial interest in the VIE and therefore is the primary beneficiary. The Company is deemed to have a controlling financial interest when it has both the ability to direct the activities that most significantly impact the economic performance of the VIE and the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. Based on the Company’s assessment, if it determines it is the primary beneficiary, the Company consolidates the VIE in the Company’s Consolidated Financial Statements. Consolidated VIEs As of December 31, 2019 and 2018 , the Company did not hold any securities for which it is the primary beneficiary. Non-Consolidated VIEs The Company, through normal investment activities, makes passive investments in limited partnerships and other alternative investments. For these non-consolidated VIEs, the Company has determined it is not the primary beneficiary as it has no ability to direct activities that could significantly affect the economic performance of the investments. The Company’s maximum exposure to loss as of December 31, 2019 and 2018 is limited to the total carrying value of $1.1 billion and $1.0 billion , respectively, which are included in limited partnerships and other alternative investments in the Company's Consolidated Balance Sheets. As of December 31, 2019 and 2018 , the Company has outstanding commitments totaling $851 and $718 , respectively, whereby the Company is committed to fund these investments and may be called by the partnership during the commitment period to fund the purchase of new investments and partnership expenses. These investments are generally of a passive nature in that the Company does not take an active role in management. In addition, the Company makes passive investments in structured securities issued by VIEs for which the Company is not the manager. These investments are included in ABS, CLOs, CMBS and RMBS and are reported in fixed maturities, available-for-sale, and fixed maturities, FVO, in the Company’s Consolidated Balance Sheets. The Company has not provided financial or other support with respect to these investments other than its original investment. For these investments, the Company determined it is not the primary beneficiary due to the relative size of the Company’s investment in comparison to the principal amount of the structured securities issued by the VIEs, the level of credit subordination which reduces the Company’s obligation to absorb losses or right to receive benefits and the Company’s inability to direct the activities that most significantly impact the economic performance of the VIEs. The Company’s maximum exposure to loss on these investments is limited to the amount of the Company’s investment. Securities Lending, Repurchase Agreements, and Other Collateral Transactions and Restricted Investments The Company enters into securities financing transactions as a way to earn additional income or manage liquidity, primarily through securities lending and repurchase agreements. Securities Lending and Repurchase Agreements December 31, 2019 December 31, 2018 Fair Value Fair Value Securities Lending Transactions: Gross amount of securities on loan $ 606 $ 820 Gross amount of associated liability for collateral received [1] $ 621 $ 840 Repurchase agreements: Gross amount of recognized liabilities for repurchase agreements $ — $ 72 Gross amount of collateral pledged related to repurchase agreements [2] $ — $ 73 Gross amount of recognized receivables for reverse repurchase agreements $ 15 $ 64 [1] Cash collateral received is reinvested in fixed maturities, AFS and short term investments which are included in the Consolidated Balance Sheets. Amount includes additional securities collateral received of $34 and $3 which are excluded from the Company's Consolidated Balance Sheets as of December 31, 2019 and 2018 , respectively. [2] Collateral pledged is included within fixed maturities, AFS and short term investments in the Company's Consolidated Balance Sheets. Securities Lending Under a securities lending program, the Company lends certain fixed maturities within the corporate, foreign government/government agencies, and municipal sectors as well as equity securities to qualifying third-party borrowers in return for collateral in the form of cash or securities. For domestic and non-domestic loaned securities, respectively, borrowers provide collateral of 102% and 105% of the fair value of the securities lent at the time of the loan. Borrowers will return the securities to the Company for cash or securities collateral at maturity dates generally of 90 days or less. Security collateral on deposit from counterparties in connection with securities lending transactions may not be sold or re-pledged, except in the event of default by the counterparty, and is not reflected on the Company’s Consolidated Balance Sheets. Additional collateral is obtained if the fair value of the collateral falls below 100% of the fair value of the loaned securities. The agreements are continuous and do not have stated maturity dates and provide the counterparty the right to sell or re-pledge the securities loaned. If cash, rather than securities, is received as collateral, the cash is typically invested in short-term investments or fixed maturities and is reported as an asset on the Company's Consolidated Balance Sheets. Income associated with securities lending transactions is reported as a component of net investment income in the Company’s Consolidated Statements of Operations. Repurchase Agreements From time to time, the Company enters into repurchase agreements to manage liquidity or to earn incremental income. A repurchase agreement is a transaction in which one party (transferor) agrees to sell securities to another party (transferee) in return for cash (or securities), with a simultaneous agreement to repurchase the same securities at a specified price at a later date. The maturity of these transactions is generally ninety days or less. Repurchase agreements include master netting provisions that provide both parties the right to offset claims and apply securities held by them with respect to their obligations in the event of a default. Although the Company has the contractual right to offset claims, the Company's current positions do not meet the specific conditions for net presentation. Under repurchase agreements, the Company transfers collateral of U.S. government and government agency securities and receives cash. For repurchase agreements, the Company obtains cash in an amount equal to at least 95% of the fair value of the securities transferred. The agreements require additional collateral to be transferred when necessary and provide the counterparty the right to sell or re-pledge the securities transferred. The cash received from the repurchase program is typically invested in short-term investments or fixed maturities and is reported as an asset on the Company's Consolidated Balance Sheets. The Company accounts for the repurchase agreements as collateralized borrowings. The securities transferred under repurchase agreements are included in fixed maturities, AFS with the obligation to repurchase those securities recorded in other liabilities on the Company's Consolidated Balance Sheets. From time to time, the Company enters into reverse repurchase agreements where the Company purchases securities and simultaneously agrees to resell the same or substantially the same securities. The maturity of these transactions is generally within one year. The agreements require additional collateral to be transferred to the Company when necessary and the Company has the right to sell or re-pledge the securities received. The Company accounts for reverse repurchase agreements as collateralized financing. The receivable for reverse repurchase agreements is included within short-term investments in the Company's Consolidated Balance Sheets. Other Collateral Transactions As of December 31, 2019 and 2018 , the Company pledged collateral of $37 and $47 , respectively, of U.S. government securities and municipal securities or cash primarily related to certain bank loan participations committed to through a limited partnership agreement. These amounts also include collateral related to letters of credit. For disclosure of collateral in support of derivative transactions, refer to the Derivative Collateral Arrangements section in Note 7 - Derivatives of Notes to Consolidated Financial Statements. Other Restricted Investments The Company is required by law to deposit securities with government agencies in certain states in which it conducts business. As of December 31, 2019 and 2018 , the fair value of securities on deposit was $ 2.3 billion and $2.2 billion , respectively. In addition, as of December 31, 2019 , the Company held fixed maturities and short-term investments of $447 and $189 , respectively, in a trust for the benefit of syndicate policyholders and other investments of $38 primarily consisting of overseas deposits in various countries with Lloyd's to support underwriting activities in those countries. Equity Method Investments The majority of the Company's investments in limited partnerships and other alternative investments, including hedge funds, real estate funds, and private equity funds (collectively, “limited partnerships”), are accounted for under the equity method of accounting. The remainder of investments in limited partnerships and other alternative investments consists of investments in insurer-owned life insurance accounted for at cash surrender value. The Company's investment in Hopmeadow Holdings LP is reported in other assets on the Company's Consolidated Balance Sheets and is accounted for under the equity method of accounting. For further discussion on Hopmeadow Holdings LP, see Note 21 - Business Dispositions and Discontinued Operations of Notes to the Consolidated Financial Statements. The Company recognized total equity method income of $267 , $214 , and $168 for the periods ended December 31, 2019 , 2018 and 2017 , respectively. Equity method income is reported in net investment income, except amounts related to strategic investments classified in other assets which are reported in other revenues. For investments accounted for under the equity method, the Company’s maximum exposure to loss as of December 31, 2019 is limited to the total carrying value of $1.6 billion . In addition, the Company has outstanding commitments totaling $852 to fund limited partnership investments as of December 31, 2019 . The Company’s investments accounted for under the equity method are generally of a passive nature in that the Company does not take an active role in the management. In 2019 , aggregate investment income from investments accounted for under the equity method exceeded 10% of the Company’s pre-tax consolidated net income (loss). Accordingly, the Company is disclosing aggregated, summarized financial data for the Company’s investments accounted for under the equity method. This aggregated, summarized financial data does not represent the Company’s proportionate share of investees' assets or earnings. Aggregate total assets of the investees totaled $329.4 billion and $311.0 billion as of December 31, 2019 and 2018 , respectively. Aggregate total liabilities of the investees totaled $191.2 billion and $187.7 billion as of December 31, 2019 and 2018 , respectively. Aggregate net investment income of the investees totaled $618 , $773 , and $1.9 billion for the periods ended December 31, 2019 , 2018 and 2017 , respectively. Aggregate net income excluding net investment income of the investees totaled $13.4 billion , $12.3 billion and $9.8 billion for the periods ended December 31, 2019 , 2018 and 2017 , respectively. As of, and for the period ended, December 31, 2019 , the aggregated summarized financial data reflects the latest available financial information. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | 7 . DERIVATIVES The Company utilizes a variety of OTC, OTC-cleared and exchange traded derivative instruments as a part of its overall risk management strategy as well as to enter into replication transactions. Derivative instruments are used to manage risk associated with interest rate, equity market, credit spread, issuer default, price, and currency exchange rate risk or volatility. Replication transactions are used as an economical means to synthetically replicate the characteristics and performance of assets that are permissible investments under the Company’s investment policies. Strategies that Qualify for Hedge Accounting Some of the Company's derivatives satisfy hedge accounting requirements as outlined in Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements. Typically, these hedging instruments include interest rate swaps and, to a lesser extent, foreign currency swaps where the terms or expected cash flows of the hedged item closely match the terms of the swap. The interest rate swaps are typically used to manage interest rate duration of certain fixed maturity securities or debt instruments issued. The hedge strategies by hedge accounting designation include: Cash Flow Hedges Interest rate swaps are predominantly used to manage portfolio duration and better match cash receipts from assets with cash disbursements required to fund liabilities. These derivatives primarily convert interest receipts on floating-rate fixed maturity securities to fixed rates. The Company has also entered into interest rate swaps to convert the variable interest payments on 3 month LIBOR + 2.125% junior subordinated debt to fixed interest payments. For further information, see the Junior Subordinated Debentures section within Note 13 - Debt of Notes to Consolidated Financial Statements. Foreign currency swaps are used to convert foreign currency-denominated cash flows related to certain investment receipts to U.S. dollars in order to reduce cash flow fluctuations due to changes in currency rates. The Company also previously entered into forward starting swap agreements to hedge the interest rate exposure related to the future purchase of fixed-rate securities, primarily to hedge interest rate risk inherent in the assumptions used to price certain group benefits liabilities. Non-qualifying Strategies Derivative relationships that do not qualify for hedge accounting (“non-qualifying strategies”) primarily include hedging and replication strategies that utilize credit default swaps. In addition, hedges of interest rate, foreign currency and equity risk of certain fixed maturities and equities do not qualify for hedge accounting. The non-qualifying strategies include: Credit Contracts Credit default swaps are used to purchase credit protection on an individual entity or referenced index to economically hedge against default risk and credit-related changes in the value of fixed maturity securities. Credit default swaps are also used to assume credit risk related to an individual entity or referenced index as a part of replication transactions. These contracts require the Company to pay or receive a periodic fee in exchange for compensation from the counterparty should the referenced security issuers experience a credit event, as defined in the contract. In addition, the Company enters into credit default swaps to terminate existing credit default swaps, thereby offsetting the changes in value of the original swap going forward. Interest Rate Swaps, Swaptions and Futures The Company uses interest rate swaps, swaptions and futures to manage interest rate duration between assets and liabilities. In addition, the Company enters into interest rate swaps to terminate existing swaps, thereby offsetting the changes in value of the original swap going forward. As of December 31, 2019 and 2018 , the notional amount of interest rate swaps in offsetting relationships was $7.6 billion and $7.1 billion , respectively . Foreign Currency Swaps and Forwards The Company enters into foreign currency swaps to convert the foreign currency exposures of certain foreign currency-denominated fixed maturity investments to U.S. dollars. The Company may at times enter into foreign currency forwards to hedge non-U.S. dollar denominated cash and, previously, equity securities. The Company previously entered into foreign currency forwards to hedge currency impacts on changes in equity of the U.K. property and casualty run-off subsidiaries that were sold in May 2017. For further information on the disposition, see Note 21 - Business Dispositions and Discontinued Operations of Notes to Consolidated Financial Statements. Equity Index Options The Company enters into equity index options to hedge the impact of a decline in the equity markets on the investment portfolio. The Company also enters into covered call options on equity securities to generate additional return. Contingent Capital Facility Put Option The Company previously entered into a put option agreement that provided the Company the right to require a third-party trust to purchase, at any time, The Hartford’s junior subordinated notes in a maximum aggregate principal amount of $500 . On February 8, 2017 , The Hartford exercised the put option resulting in the issuance of $500 in junior subordinated notes with proceeds received on February 15, 2017 . Under the put option agreement, The Hartford had been paying premiums on a periodic basis and had agreed to reimburse the trust for certain fees and ordinary expenses. Derivative Balance Sheet Classification For reporting purposes, the Company has elected to offset within assets or liabilities based upon the net of the fair value amounts, income accruals, and related cash collateral receivables and payables of OTC derivative instruments executed in a legal entity and with the same counterparty under a master netting agreement, which provides the Company with the legal right of offset. The following fair value amounts do not include income accruals or related cash collateral receivables and payables, which are netted with derivative fair value amounts to determine balance sheet presentation. The Company’s derivative instruments are held for risk management purposes, unless otherwise noted in the following table. The notional amount of derivative contracts represents the basis upon which pay or receive amounts are calculated and is presented in the table to quantify the volume of the Company’s derivative activity. Notional amounts are not necessarily reflective of credit risk. Derivative Balance Sheet Presentation Net Derivatives Asset Derivatives Liability Derivatives Notional Amount Fair Value Fair Value Fair Value Hedge Designation/ Derivative Type Dec 31, 2019 Dec 31, 2018 Dec 31, 2019 Dec 31, 2018 Dec 31, 2019 Dec 31, 2018 Dec 31, 2019 Dec 31, 2018 Cash flow hedges Interest rate swaps $ 2,040 $ 2,040 $ — $ 1 $ 1 $ 2 $ (1 ) $ (1 ) Foreign currency swaps 270 153 (1 ) (6 ) 3 2 (4 ) (8 ) Total cash flow hedges 2,310 2,193 (1 ) (5 ) 4 4 (5 ) (9 ) Non-qualifying strategies Interest rate contracts Interest rate swaps and futures 9,338 8,451 (59 ) (62 ) 3 8 (62 ) (70 ) Foreign exchange contracts Foreign currency swaps and forwards 464 287 (1 ) (1 ) — — (1 ) (1 ) Credit contracts Credit derivatives that purchase credit protection 124 6 (3 ) — — — (3 ) — Credit derivatives that assume credit risk [1] 500 1,102 13 3 13 8 — (5 ) Credit derivatives in offsetting positions 29 41 — — 5 6 (5 ) (6 ) Equity contracts Equity index swaps and options 941 211 (15 ) 4 15 5 (30 ) (1 ) Total non-qualifying strategies 11,396 10,098 (65 ) (56 ) 36 27 (101 ) (83 ) Total cash flow hedges and non-qualifying strategies $ 13,706 $ 12,291 $ (66 ) $ (61 ) $ 40 $ 31 $ (106 ) $ (92 ) Balance Sheet Location Fixed maturities, available-for-sale $ 244 $ 153 $ — $ — $ — $ — $ — $ — Other investments 1,277 9,864 12 7 13 23 (1 ) (16 ) Other liabilities 12,185 2,274 (78 ) (68 ) 27 8 (105 ) (76 ) Total derivatives $ 13,706 $ 12,291 $ (66 ) $ (61 ) $ 40 $ 31 $ (106 ) $ (92 ) [1] The derivative instruments related to this strategy are held for other investment purposes. Offsetting of Derivative Assets/Liabilities The following tables present the gross fair value amounts, the amounts offset, and net position of derivative instruments eligible for offset in the Company's Consolidated Balance Sheets. Amounts offset include fair value amounts, income accruals and related cash collateral receivables and payables associated with derivative instruments that are traded under a common master netting agreement, as described in the preceding discussion. Also included in the tables are financial collateral receivables and payables, which are contractually permitted to be offset upon an event of default, although are disallowed for offsetting under U.S. GAAP. Offsetting Derivative Assets and Liabilities (i) (ii) (iii) = (i) - (ii) (iv) (v) = (iii) - (iv) Net Amounts Presented in the Statement of Financial Position Collateral Disallowed for Offset in the Statement of Financial Position Gross Amounts of Recognized Assets (Liabilities) Gross Amounts Offset in the Statement of Financial Position Derivative Assets [1] (Liabilities) [2] Accrued Interest and Cash Collateral (Received) [3] Pledged [2] Financial Collateral (Received) Pledged [4] Net Amount As of December 31, 2019 Other investments $ 40 $ 37 $ 12 $ (9 ) $ 1 $ 2 Other liabilities $ (106 ) $ (23 ) $ (78 ) $ (5 ) $ (73 ) $ (10 ) As of December 31, 2018 Other investments $ 31 $ 26 $ 7 $ (2 ) $ 2 $ 3 Other liabilities $ (92 ) $ (20 ) $ (68 ) $ (4 ) $ (65 ) $ (7 ) [1] Included in other investments in the Company's Consolidated Balance Sheets. [2] Included in other liabilities in the Company's Consolidated Balance Sheets and is limited to the net derivative payable associated with each counterparty. [3] Included in other investments in the Company's Consolidated Balance Sheets and is limited to the net derivative receivable associated with each counterparty. [4] Excludes collateral associated with exchange-traded derivative instruments. Cash Flow Hedges For derivative instruments that are designated and qualify as cash flow hedges, the gain or loss on the derivative is reported as a component of OCI and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness. Gain (Loss) Recognized in OCI Year Ended December 31, 2019 2018 2017 Interest rate swaps $ 18 $ 5 $ 8 Foreign currency swaps 8 7 (14 ) Total $ 26 $ 12 $ (6 ) Gain (Loss) Reclassified from AOCI into Income Year Ended December 31, 2019 2018 2017 Net Realized Capital Gain/(Loss) Net Investment Income Interest Expense Net Realized Capital Gain/(Loss) Net Investment Income Interest Expense Net Realized Capital Gain/(Loss) Net Investment Income Interest Expense Interest rate swaps $ 2 $ 4 $ 1 $ 6 $ 30 $ — $ 5 $ 37 $ — Foreign currency swaps — 3 — — — — — — — Total $ 2 $ 7 $ 1 $ 6 $ 30 $ — $ 5 $ 37 $ — Total amounts presented on the Consolidated Statement of Operations $ 395 $ 1,951 $ 259 $ (112 ) $ 1,780 $ 298 $ 165 $ 1,603 $ 316 As of December 31, 2019 , the before tax deferred net gains on derivative instruments recorded in AOCI that are expected to be reclassified to earnings during the next twelve months are $16 . This expectation is based on the anticipated interest payments on hedged investments in fixed maturity securities that will occur over the next twelve months, at which time the Company will recognize the deferred net gains (losses) as an adjustment to net investment income over the term of the investment cash flows. During the years ended December 31, 2019 , 2018 , and 2017 , the Company had no net reclassifications from AOCI to earnings resulting from the discontinuance of cash-flow hedges due to forecasted transactions that were no longer probable of occurring. Non-Qualifying Strategies For non-qualifying strategies, including embedded derivatives that are required to be bifurcated from their host contracts and accounted for as derivatives, the gain or loss on the derivative is recognized currently in earnings within net realized capital gains (losses). Non-Qualifying Strategies Recognized within Net Realized Capital Gains (Losses) For the Year Ended December 31, 2019 2018 2017 Interest rate contracts Interest rate swaps, swaptions and futures (35 ) (3 ) (5 ) Credit contracts Credit derivatives that purchase credit protection (5 ) — 28 Credit derivatives that assume credit risk 32 (14 ) (7 ) Equity contracts Equity options (17 ) 2 (7 ) Foreign exchange contracts Foreign currency swaps and forwards 1 3 (14 ) Other Contingent capital facility put option — — (1 ) Total [1] $ (24 ) $ (12 ) $ (6 ) [1] Excludes investments that contain an embedded credit derivative for which the Company has elected the fair value option. For further discussion, see the Fair Value Option section in Note 5 - Fair Value Measurements of Notes to Consolidated Financial Statements. Credit Risk Assumed through Credit Derivatives The Company enters into credit default swaps that assume credit risk of a single entity or referenced index in order to synthetically replicate investment transactions that are permissible under the Company's investment policies. The Company will receive periodic payments based on an agreed upon rate and notional amount and will only make a payment if there is a credit event. A credit event payment will typically be equal to the notional value of the swap contract less the value of the referenced security issuer’s debt obligation after the occurrence of the credit event. A credit event is generally defined as a default on contractually obligated interest or principal payments or bankruptcy of the referenced entity. The credit default swaps in which the Company assumes credit risk primarily reference investment grade single corporate issuers and baskets, which include standard diversified portfolios of corporate and CMBS issuers. The diversified portfolios of corporate issuers are established within sector concentration limits and may be divided into tranches that possess different credit ratings. Credit Risk Assumed Derivatives by Type Underlying Referenced Credit Obligation(s) [1] Notional Amount [2] Fair Value Weighted Average Years to Maturity Type Average Credit Rating Offsetting Notional Amount [3] Offsetting Fair Value [3] As of December 31, 2019 Single name credit default swaps Investment grade risk exposure $ 100 $ 3 5 years Corporate Credit A- $ — $ — Basket credit default swaps [4] Investment grade risk exposure 400 10 5 years Corporate Credit BBB+ — — Investment grade risk exposure 1 — Less than 1 year CMBS Credit A 1 — Below investment grade risk exposure 14 (5 ) Less than 1 year CMBS Credit CCC- 14 5 Total [5] $ 515 $ 8 $ 15 $ 5 As of December 31, 2018 Single name credit default swaps Investment grade risk exposure $ 169 $ 2 4 years Corporate Credit/ A $ — $ — Basket credit default swaps [4] Investment grade risk exposure 799 (1 ) 6 years Corporate Credit BBB+ — — Below investment grade risk exposure 125 2 5 years Corporate Credit B+ — — Investment grade risk exposure 11 — 5 years CMBS Credit A- 2 — Below investment grade risk exposure 19 (6 ) Less than 1 year CMBS Credit CCC 19 6 Total [5] $ 1,123 $ (3 ) $ 21 $ 6 [1] The average credit ratings are based on availability and are generally the midpoint of the available ratings among Moody’s, S&P, and Fitch. If no rating is available from a rating agency, then an internally developed rating is used. [2] Notional amount is equal to the maximum potential future loss amount. These derivatives are governed by agreements and applicable law which include collateral posting requirements. There is no additional specific collateral related to these contracts or recourse provisions included in the contracts to offset losses. [3] The Company has entered into offsetting credit default swaps to terminate certain existing credit default swaps, thereby offsetting the future changes in value of, or losses paid related to, the original swap. [4] Comprised of swaps of standard market indices of diversified portfolios of corporate and CMBS issuers referenced through credit default swaps. These swaps are subsequently valued based upon the observable standard market index. [5] Excludes investments that contain an embedded credit derivative for which the Company has elected the fair value option. For further discussion, see the Fair Value Option section in Note 5 - Fair Value Measurements . of Notes to Consolidated Financial Statements. Derivative Collateral Arrangements The Company enters into various collateral arrangements in connection with its derivative instruments, which require both the pledging and accepting of collateral. As of December 31, 2019 and 2018 , the Company pledged cash collateral with a fair value of less than $1 and $4 associated with derivative instruments. The collateral receivable has been recorded in other assets or other liabilities on the Company's Consolidated Balance Sheets as determined by the Company's election to offset on the balance sheet. As of December 31, 2019 and 2018 , the Company also pledged securities collateral associated with derivative instruments with a fair value of $78 and $ 67 , respectively, which have been included in fixed maturities on the Consolidated Balance Sheets. The counterparties generally have the right to sell or re-pledge these securities. In addition, as of December 31, 2019 and 2018 , the Company has pledged initial margin of securities related to OTC-cleared and exchange traded derivatives with a fair value of $88 and $89 , respectively, which are included within fixed maturities on the Company's Consolidated Balance Sheets. As of December 31, 2019 and 2018 , the Company accepted cash collateral associated with derivative instruments of $16 and $9 , respectively, which was invested and recorded in the Consolidated Balance Sheets in fixed maturities and short-term investments with corresponding amounts recorded in other investments or other liabilities as determined by the Company's election to offset on the balance sheet. The Company also accepted securities collateral as of December 31, 2019 and 2018 with a fair value of $1 and $5 , respectively, which the Company has the ability to sell or repledge. As of December 31, 2019 and 2018 , the Company had no repledged securities and no securities held as collateral have been sold. In addition, as of December 31, 2019 and 2018 , non-cash collateral accepted was held in separate custodial accounts and was not included in the Company’s Consolidated Balance Sheets. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Reinsurance | 8 . REINSURANCE The Company cedes insurance risk to reinsurers to enable the Company to manage capital and risk exposure. Such arrangements do not relieve the Company of its primary liability to policyholders. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company's procedures include carefully selecting its reinsurers, structuring agreements to provide collateral funds where necessary, and regularly monitoring the financial condition and ratings of its reinsurers. The Company has two adverse development cover (“ADC”) reinsurance agreements in place, both of which are accounted for as retroactive reinsurance. One agreement covers substantially all asbestos and environmental ("A&E") reserve development for 2016 and prior accident years ("A&E ADC") and the Navigators ADC covers substantially all reserve development of Navigators Insurance Company and certain of its affiliates for 2018 and prior accident years. For more information on ADC agreements, see Note 1 - Basis of Presentation and Significant Accounting Policies , and Note 11 - Reserve for Unpaid Losses and Loss Adjustment Expenses . Property and Casualty ceded losses, which reduce losses and loss adjustment expenses incurred, were $826 , $661 and $901 for the years ended December 31, 2019 , 2018 and 2017 , respectively. Group Benefits ceded losses, which reduce losses and loss adjustment expenses incurred, were $73 , $116 and $120 for the years ended December 31, 2019 , 2018 and 2017 , respectively. Reinsurance Recoverables Reinsurance recoverables include balances due from reinsurance companies and are presented net of an allowance for uncollectible reinsurance. Reinsurance recoverables include an estimate of the amount of gross losses and loss adjustment expense reserves that may be ceded under the terms of the reinsurance agreements, including incurred but not reported unpaid losses. The Company’s estimate of losses and loss adjustment expense reserves ceded to reinsurers is based on assumptions that are consistent with those used in establishing the gross reserves for amounts the Company owes to its claimants. The Company estimates its ceded reinsurance recoverables based on the terms of any applicable facultative and treaty reinsurance, including an estimate of how incurred but not reported losses will ultimately be ceded under reinsurance agreements. Accordingly, the Company’s estimate of reinsurance recoverables is subject to similar risks and uncertainties as the estimate of the gross reserve for unpaid losses and loss adjustment expenses. Reinsurance Recoverables As of December 31, 2019 December 31, 2018 Property and Casualty Insurance Products Paid loss and loss adjustment expenses $ 249 $ 127 Unpaid loss and loss adjustment expenses 4,819 3,773 Gross reinsurance recoverables 5,068 3,900 Allowance for uncollectible reinsurance (114 ) (126 ) Net P&C reinsurance recoverables 4,954 3,774 Group Benefits net reinsurance recoverables [1] 253 251 Recoverable related to reserves in Corporate [1] 320 332 Reinsurance recoverables, net $ 5,527 $ 4,357 [1] No allowance for uncollectible reinsurance was required as of December 31, 2019 and 2018 . The allowance for uncollectible reinsurance reflects management’s best estimate of reinsurance cessions that may be uncollectible in the future due to reinsurers’ unwillingness or inability to pay. The Company analyzes recent developments in commutation activity between reinsurers and cedants, recent trends in arbitration and litigation outcomes in disputes between reinsurers and cedants and the overall credit quality of the Company’s reinsurers. Based on this analysis, the Company may adjust the allowance for uncollectible reinsurance or charge off reinsurer balances that are determined to be uncollectible. Where its contracts permit, the Company secures future claim obligations with various forms of collateral, including irrevocable letters of credit, secured trusts, funds held accounts and group-wide offsets. Due to the inherent uncertainties as to collection and the length of time before reinsurance recoverables become due, it is possible that future adjustments to the Company’s reinsurance recoverables, net of the allowance, could be required, which could have a material adverse effect on the Company’s consolidated results of operations or cash flows in a particular quarter or annual period. Insurance Revenues Property and Casualty Insurance Revenue For the years ended December 31, Premiums Written 2019 2018 2017 Direct $ 12,190 $ 10,784 $ 10,865 Assumed 371 217 223 Ceded (978 ) (593 ) (571 ) Net $ 11,583 $ 10,408 $ 10,517 Premiums Earned Direct $ 12,010 $ 10,824 $ 10,923 Assumed 416 221 232 Ceded (936 ) (599 ) (600 ) Net $ 11,490 $ 10,446 $ 10,555 Group Benefits Revenue For the years ended December 31, 2019 2018 2017 Gross earned premiums, fees and other considerations $ 4,122 $ 3,615 $ 3,281 Reinsurance assumed 1,572 2,044 446 Reinsurance ceded (91 ) (61 ) (50 ) Net earned premiums, fees and other considerations $ 5,603 $ 5,598 $ 3,677 For its group benefits products, the Company reinsures certain of its risks to other reinsurers under yearly renewable term and coinsurance arrangements and variations thereto. Yearly renewable term and coinsurance arrangements result in passing a portion of the risk to the reinsurer. Generally, the reinsurer receives a proportionate amount of the premiums less an allowance for commissions and expenses and is liable for a corresponding proportionate amount of all benefit payments. The increase in premiums assumed from 2017 to 2018 was primarily due to premiums related to Aetna's U.S. group life and disability business acquired by the Company effective November 1, 2017 whereby Aetna is fronting the business for a period of time. As that business is re-written through Hartford writing companies, the amount of assumed reinsurance for Group Benefits will decrease and gross premium written on a direct basis will increase. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Deferred Policy Acquisition Costs | 9 . DEFERRED POLICY ACQUISITION COSTS Changes in DAC For the years ended December 31, 2019 2018 2017 Balance, beginning of period $ 670 $ 650 $ 645 Deferred costs 1,635 1,404 1,377 Amortization — DAC (1,622 ) (1,384 ) (1,372 ) Add back amortization of value of business acquired [1] 102 — — Balance, end of period $ 785 $ 670 $ 650 |
Goodwill & Other Intangible Ass
Goodwill & Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill & Other Intangible Assets | 10 . GOODWILL & OTHER INTANGIBLE ASSETS Goodwill Carrying Value as of December 31, 2019 Commercial Lines Personal Lines Hartford Funds Group Benefits Corporate [1] Total Balance at December 31, 2017 $ 38 $ 119 $ 180 $ 723 $ 230 $ 1,290 Goodwill related to acquisitions — — — — — — Balance at December 31, 2018 $ 38 $ 119 $ 180 $ 723 $ 230 $ 1,290 Goodwill related to acquisitions [2] 623 — — — — 623 Balance at December 31, 2019 $ 661 $ 119 $ 180 $ 723 $ 230 $ 1,913 [1] The Corporate category includes goodwill that was acquired at a holding company level and not pushed down to a subsidiary within a reportable segment. Carrying value of goodwill within Corporate as of December 31, 2019, 2018, and 2017 includes $138 and $92 for the Group Benefits and Hartford Funds reporting units, respectively. [2] For further discussion on goodwill related to the acquisition of Navigators Group, refer to Note 2 - Business Acquisitions of Notes to Consolidated Financial Statements. The annual goodwill assessment for The Hartford's reporting units was completed as of October 31, 2019 , 2018 , and 2017 , which resulted in no write-downs of goodwill in the respective years then ended. In 2019 , all reporting units passed the first step of their annual impairment test with a significant margin. Other Intangible Assets As of December 31, 2019 As of December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized Intangible Assets: Value of in-force contracts [1] $ 203 $ (125 ) $ 78 $ 23 $ (23 ) $ — Customer relationships [2] 636 (92 ) 544 636 (49 ) 587 Marketing agreement with Aetna 16 (2 ) 14 16 (1 ) 15 Distribution Agreement 79 (61 ) 18 79 (56 ) 23 Distribution and Agency relationships & Other [3] [4] 340 (19 ) 321 21 (3 ) 18 Total Finite Life Intangibles 1,274 (299 ) 975 775 (132 ) 643 Total Indefinite Life Intangible Assets [5] 95 — 95 14 — 14 Total Other Intangible Assets $ 1,369 $ (299 ) $ 1,070 $ 789 $ (132 ) $ 657 [1] On May 23, 2019, the Company acquired Navigators Group and recorded a value of in-force-contracts intangible asset of $180 which will be amortized over 3 years . For further discussion on the value of in-force-contracts related to the acquisition of Navigators Group, refer to Note 2 - Business Acquisitions of Notes to Consolidated Financial Statements. [2] On February 16, 2018, The Company entered into a renewal rights agreement with Farmers Exchanges of the Farmers Group of Companies to acquire its Foremost-branded small commercial business sold through independent agents. In connection with the renewal rights agreement, the Company recorded a customer relationships intangible asset of $ 46 which will be amortized over 10 years . [3] On December 1, 2018, the Company acquired Y-Risk LLC and recorded an agency relationships intangible asset of $ 12 which will be amortized over 15 years . [4] On May 23, 2019, the Company acquired Navigators Group and recorded other intangible assets of $302 for distribution relationships and $17 for the trade name. The distribution relationships and trade name will be amortized over 15 years and 10 years , respectively. For further discussion on the value of distribution relationships and trade name related to the acquisition of Navigators Group, refer to Note 2 - Business Acquisitions of Notes to Consolidated Financial Statements. [5] On May 23, 2019, the Company acquired Navigators Group and recorded an indefinite life intangible asset of $66 related to the capacity to write business through its Lloyd's Syndicate and recorded an indefinite life intangible of $15 for licenses . For further discussion on the indefinite life intangible assets related to the acquisition of Navigators Group, refer to Note 2 - Business Acquisitions of Notes to Consolidated Financial Statements. Expected Pre-tax Amortization Expense [1] for Acquired Intangibles as of December 31, 2019 Value of In-force Contracts Other Intangible Assets 2020 $ 47 $ 74 2021 $ 21 $ 74 2022 $ 10 $ 74 2023 $ — $ 74 2024 $ — $ 74 [1] In the Consolidated Statements of Operations, the amortization of value of in-force contracts is reported in amortization of deferred policy acquisition costs and the amortization of other intangible assets is reported in amortization of other intangible assets. |
Reserve for Unpaid Losses and L
Reserve for Unpaid Losses and Loss Adjustment Expenses | 12 Months Ended |
Dec. 31, 2019 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Activity in Liability [Abstract] | |
Reserve for Unpaid Losses and Loss Adjustment Expenses | 11 . RESERVE FOR UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES Property and Casualty Insurance Products Rollforward of Liabilities for Unpaid Losses and Loss Adjustment Expenses For the years ended December 31, 2019 2018 2017 Beginning liabilities for unpaid losses and loss adjustment expenses, gross $ 24,584 $ 23,775 $ 22,545 Reinsurance and other recoverables 4,232 3,957 3,488 Beginning liabilities for unpaid losses and loss adjustment expenses, net 20,352 19,818 19,057 Navigators Group acquisition 2,001 — — Provision for unpaid losses and loss adjustment expenses Current accident year 7,463 7,107 7,381 Prior accident year development [1] (65 ) (167 ) (41 ) Total provision for unpaid losses and loss adjustment expenses 7,398 6,940 7,340 Change in deferred gain on retroactive reinsurance included in other liabilities [1] (16 ) — — Payments Current accident year (2,374 ) (2,452 ) (2,751 ) Prior accident years (4,374 ) (3,954 ) (3,828 ) Total payments (6,748 ) (6,406 ) (6,579 ) Foreign currency adjustment (1 ) — — Ending liabilities for unpaid losses and loss adjustment expenses, net 22,986 20,352 19,818 Reinsurance and other recoverables 5,275 4,232 3,957 Ending liabilities for unpaid losses and loss adjustment expenses, gross $ 28,261 $ 24,584 $ 23,775 [1] Prior accident year development does not include the benefit of a portion of losses ceded under the Navigators ADC which, under retroactive reinsurance accounting, is deferred and is recognized over the period the ceded losses are recovered in cash from NICO . For additional information regarding the Navigators ADC agreement, please refer to Adverse Development Covers discussion below. Property and Casualty Insurance Products Reserves, Net of Reinsurance, that are Discounted For the years ended December 31, 2019 2018 2017 Liability for unpaid losses and loss adjustment expenses, at undiscounted amounts $ 1,331 $ 1,331 $ 1,387 Amount of discount 388 388 410 Carrying value of liability for unpaid losses and loss adjustment expenses $ 943 $ 943 $ 977 Discount accretion included in losses and loss adjustment expenses $ 33 $ 40 $ 30 Weighted average discount rate 2.91 % 2.98 % 3.06 % Range of discount rates 1.76 % - 14.03 % 1.77 % - 14.15 % 1.77 % - 14.15 % The current accident year benefit from discounting property and casualty insurance product reserves was $33 in 2019 , $12 in 2018 and $15 in 2017 . Reserves are discounted at rates in effect at the time claims were incurred, ranging from 1.76% for accident year 2012 to 14.03% for accident year 1981. The reserves recorded for the Company’s property and casualty insurance products at December 31, 2019 represent the Company’s best estimate of its ultimate liability for losses and loss adjustment expenses related to losses covered by policies written by the Company. However, because of the significant uncertainties surrounding reserves it is possible that management’s estimate of the ultimate liabilities for these claims may change and that the required adjustment to recorded reserves could exceed the currently recorded reserves by an amount that could be material to the Company’s results of operations or cash flows. Losses and loss adjustment expenses are also impacted by trends including frequency and severity as well as changes in the legislative and regulatory environment. In the case of the reserves for asbestos exposures, factors contributing to the high degree of uncertainty in the ultimate settlement of the liabilities gross of reinsurance include inadequate loss development patterns, plaintiffs’ expanding theories of liability, the risks inherent in major litigation, and inconsistent emerging legal doctrines. In the case of the reserves for environmental exposures before reinsurance, factors contributing to the high degree of uncertainty in gross reserves include expanding theories of liabilities and damages, the risks inherent in major litigation, inconsistent decisions concerning the existence and scope of coverage for environmental claims, and uncertainty as to the monetary amount being sought by the claimant from the insured. (Favorable) Unfavorable Prior Accident Year Development For the years ended December 31, 2019 2018 2017 Workers’ compensation $ (120 ) $ (164 ) $ (79 ) Workers’ compensation discount accretion 33 40 28 General liability 61 52 11 Marine 8 — — Package business (47 ) (26 ) (25 ) Commercial property (11 ) (12 ) (8 ) Professional liability 29 (12 ) 1 Bond (3 ) 2 32 Assumed Reinsurance 3 — — Automobile liability - Commercial Lines 27 (15 ) 17 Automobile liability - Personal Lines (38 ) (18 ) — Homeowners 3 (25 ) (14 ) Net asbestos reserves — — — Net environmental reserves — — — Catastrophes (42 ) (49 ) (16 ) Uncollectible reinsurance (30 ) 22 (15 ) Other reserve re-estimates, net 46 38 27 Total prior accident year development, including full benefit for the ADC cession (81 ) (167 ) (41 ) Change in deferred gain on retroactive reinsurance included in other liabilities 16 — — Total prior accident year development $ (65 ) $ (167 ) $ (41 ) 2019 re-estimates of prior accident year reserves Workers’ compensation reserves were reduced, principally in small commercial driven by lower than previously estimated claim severity for the 2014 through 2017 accident years and, to a lesser extent, in national accounts due to lower estimated claim severity, primarily for accident years 2013 and prior. General liability reserves were increased, primarily due to reserve increases in small commercial for accident years 2017 and 2018 due to higher frequency of high-severity bodily injury claims, reserve increases in middle & large commercial for accident years 2015 to 2018 due to higher estimated severity, as well as increased estimated severity on the acquired Navigators Group book of business related to U.S. construction, premises liability, products liability and excess casualty, mostly related to accident years 2014 to 2017. In addition, an increase in reserves for mass torts for 2009 and prior accident years was offset by a decrease in reserves for extra contractual liability claims for more recent accident years, including the 2018 accident year. Marine reserves were increased, principally related to pollution exposure from the 1980s and 1990s related to the Navigators Group book of business. Package business reserves were decreased, primarily due to favorable emergence on property claims related to accident years 2016 through 2018 and due to favorable development of loss adjustment expenses on general liability claims for 2017 and prior accident years. Commercial property reserves were decreased, principally due to favorable emergence of reported losses, including on the acquired Navigators Group book of business, related to offshore energy in accident years 2017 to 2018 and construction engineering across accident years 2015 to 2018. Professional liability reserves were increased, primarily due to increased securities litigation and large loss activity, including wrongful termination and discrimination claims, related to accident years 2017 and 2018 and increased estimated frequency and severity of directors’ and officers’ reserves on the Navigators Group book of business, principally for the 2014 to 2018 accident years. Partially offsetting the increase was a decrease in average severity on public company directors’ and officers’ claim reserves and errors and omissions claim reserves for accident years 2014 and prior. Automobile liability reserves were decreased in Personal Lines and increased in Commercial Lines. The decrease in Personal Lines was due to the emergence of lower estimated severity in automobile liability for accident year 2017. The increase in Commercial Lines was due to higher estimated severity on national accounts, principally in accident years 2017 and 2018, and higher estimated severity for accident year 2018 in small commercial and middle market, partially offset by lower estimated severity for 2017 and prior accident years in small commercial and middle market. Catastrophes reserves were reduced, primarily as a result of lower estimated net losses from 2017 hurricanes Harvey and Irma and the 2017 California wildfires. While gross loss reserve estimates for the 2018 California wildfires were also reduced, this was largely offset by a reduction in reinsurance recoverables resulting in very little change to estimated net losses from those wildfires . In December, 2019, the judge overseeing the bankruptcy of PG&E Corporation and Pacific Gas and Electric Company (together, “PG&E”) approved an $11 billion settlement with insurers representing approximately 85 percent of insurance subrogation claims to resolve all such claims arising from the 2017 Northern California wildfires and 2018 Camp wildfire. The bankruptcy court has also approved PG&E’s settlement with individual wildfire claimants. Those settlements are subject to confirmation by the bankruptcy court of a chapter 11 plan of reorganization ("PG&E Plan") which implements the terms of the settlements. If the PG&E Plan is approved, certain of the Company’s insurance subsidiaries would be entitled to settlement payments of subrogation claims. Based on reserve estimates submitted with the subrogation request, the amount our subsidiaries could collect from PG&E, if any, would be approximately $300 to $325 but could be more or less than that amount depending on how the Company’s ultimate paid claims subject to subrogation compare to other insurers’ ultimate paid claims subject to subrogation. Confirmation of the PG&E Plan and amount of the Company’s ultimate subrogation recoveries from PG&E are subject to uncertainty, including but not limited to resolution of objections raised by the Governor of California and others. Given the uncertainty about whether the PG&E Plan will be confirmed, the Company has not recognized a benefit from potential subrogation from PG&E and will evaluate in future periods when more information becomes known. In connection with the 2018 Camp wildfire, the Company has recognized a $12 reinsurance recoverable for losses incurred in excess of a $350 per occurrence retention. Under its 2018 property aggregate catastrophe treaty, the Company has recognized a reinsurance recoverable for aggregate catastrophe losses in excess of an $825 retention, with the recoverable currently estimated at $45 . As such, the first $57 of subrogation recoveries would be offset by a $57 reduction in these reinsurance recoverables resulting in no net benefit to income. Uncollectible reinsurance reserves were reduced due to higher than expected recoveries from reinsurers in older accident years. Other reserve re-estimates, net, primarily represents an increase in unallocated loss adjustment expense ('ULAE") reserves in Property & Casualty Other Operations that was driven by an increase in gross asbestos and environmental reserves, as well as higher than anticipated ULAE costs in recent years, prompting an increase in the projected ULAE run rate. 2018 re-estimates of prior accident year reserves Workers’ compensation reserves were reduced in small commercial and middle market, primarily for accident years 2014 and 2015, as claim severity has emerged favorably compared to previous reserve estimates. Also contributing was a reduction in estimated reserves for ULAE. General liability reserves were increased, primarily due to an increase in reserves for higher hazard general liability exposures in middle market for accident years 2009 to 2017, partially offset by a decrease in reserves for other lines within middle market, including premises and operations, umbrella and products liability, principally for accident years 2015 and prior. Contributing to the increase in reserves for higher hazard general liability exposures was an increase in average claim severity, including from large losses and, in more recent accident years, an increase in claim frequency. Contributing to the reduction in reserves for other middle market lines were more favorable outcomes due to initiatives to reduce legal expenses. In addition, reserve increases for claims with lead paint exposure were offset by reserve decreases for other mass torts and extra-contractual liability claims. Package business reserves were reduced, primarily due to lower reserve estimates for both liability and property for accident years 2010 and prior, including a recovery of loss adjustment expenses for the 2005 accident year. Commercial property reserves were r educed, driven by an increase in estimated reinsurance recoverables on middle market property losses from the 2017 accident year. Professional liability reserves were reduced, principally for accident years 2014 and prior, for directors and officers liability claims principally due to a number of older claims closing with limited or no payment. Automobile liability reserves were reduced, primarily driven by reduced estimates of loss adjustment expenses in small commercial for recent accident years and favorable development in personal automobile liability for accident years 2014 to 2017, principally due to lower severity, including with uninsured and underinsured motorist claims. Homeowners reserves were reduced, primarily in accident years 2013 to 2017, driven by lower than expected severity across multiple perils. Asbestos and environmental reserves were unchanged as $238 of adverse development arising from the fourth quarter 2018 comprehensive annual review was offset by a $238 recoverable from NICO. For additional information related to the adverse development cover with NICO, see Note 8 - Reinsurance and Note 14 - Commitments and Contingencies of Notes to Consolidated Financial Statements. Catastrophe reserves were r educed, primarily as a result of lower estimated net losses from 2017 catastrophes, principally related to hurricanes Harvey and Irma. Before reinsurance, estimated losses for 2017 catastrophe events decreased by $133 , resulting in a decrease in reinsurance recoverables of $90 as the Company no longer expects to recover under the 2017 Property Aggregate reinsurance treaty as aggregate ultimate losses for 2017 catastrophe events are now projected to be less than $850 . Uncollectible reinsurance reserves were increased due to lower anticipated recoveries related to older accident years. Other reserve re-estimates, net, primarily represents an increase in ULAE reserves in Property & Casualty Other Operations that was principally driven by an increase in expected claim handling costs associated with asbestos and environmental and mass tort claims. 2017 re-estimates of prior accident year reserves Workers’ compensation reserves were reduced in small commercial and middle market, given the continued emergence of favorable frequency, primarily for accident years 2013 to 2015, as well as a reduction in estimated reserves for unallocated loss adjustment expenses, partially offset by strengthening reserves for captive programs within specialty commercial. General liability reserves were in creased for the 2013 to 2016 accident years on a class of business that insures service and maintenance contractors. This increase was partially offset by a decrease in recent accident year reserves for other middle market general liability reserves. Package business reserves were reduced for accident years 2013 and prior largely due to reducing the Company’s estimate of allocated loss adjustment expenses incurred to settle the claims. Bond business reserves increased for customs bonds written between 2000 and 2010 which was partly offset by a reduction in reserves for recent accident years as reported losses for commercial and contract surety have emerged favorably. Automobile liability reserves within Commercial Lines were increased in small commercial and large national accounts for the 2013 to 2016 accident years, driven by higher frequency of more severe accidents, including litigated claims Asbestos and environmental reserves were unchanged as $285 of adverse development arising from the fourth quarter 2017 comprehensive annual review was offset by a $285 recoverable from NICO. For additional information related to the adverse development cover with NICO, see Note 8 - Reinsurance and Note 14 - Commitments and Contingencies of Notes to Consolidated Financial Statements. Catastrophes reserves were reduced primarily due to lower estimates of 2016 wind and hail event losses and a decrease in losses on a 2015 wildfire. Uncollectible reinsurance reserves decr eased as a result of giving greater weight to favorable collectibility experience in recent calendar periods in estimating future collections. Adverse Development Covers The Company has an adverse development cover reinsurance agreement with NICO, a subsidiary of Berkshire Hathaway Inc., to reinsure loss development after 2016 on substantially all of the Company’s asbestos and environmental reserves (the “A&E ADC”). Under the A&E ADC, the Company paid a reinsurance premium of $650 for NICO to assume adverse net loss reserve development up to $1.5 billion above the Company’s existing net A&E reserves as of December 31, 2016 of approximately $1.7 billion including reserves for A&E exposure for accident years prior to 1986 that are reported in Property & Casualty Other Operations ("Run-off A&E") and reserves for A&E exposure for accident years 1986 and subsequent from policies underwritten prior to 2016 that are reported in ongoing Commercial Lines and Personal Lines. The $650 reinsurance premium was placed into a collateral trust account as security for NICO’s claim payment obligations to the Company. The Company has retained the risk of collection on amounts due from other third-party reinsurers and continues to be responsible for claims handling and other administrative services, subject to certain conditions. The A&E ADC covers substantially all the Company’s A&E reserve development up to the reinsurance limit. Under retroactive reinsurance accounting, net adverse A&E reserve development after December 31, 2016 will result in an offsetting reinsurance recoverable up to the $1.5 billion limit. Cumulative ceded losses up to the $650 reinsurance premium paid are recognized as a dollar-for-dollar offset to direct losses incurred. Cumulative ceded losses exceeding the $650 reinsurance premium paid would result in a deferred gain. The deferred gain would be recognized over the claim settlement period in the proportion of the amount of cumulative ceded losses collected from the reinsurer to the estimated ultimate reinsurance recoveries. Consequently, until periods when the deferred gain is recognized as a benefit to earnings, cumulative adverse development of asbestos and environmental claims after December 31, 2016 in excess of $650 may result in significant charges against earnings. As of December 31, 2019, the Company has incurred $640 in cumulative adverse development on asbestos and environmental reserves that have been ceded under the A&E ADC treaty with NICO. Immediately after closing on the acquisition of Navigators Group, effective May 23, 2019, the Company purchased the Navigators ADC, an aggregate excess of loss reinsurance agreement covering adverse reserve development, from NICO on behalf of Navigators Insurers. Under the Navigators ADC, the Navigators Insurers paid NICO a reinsurance premium of $91 in exchange for reinsurance coverage of $300 of adverse net loss reserve development that attaches $100 above the Navigators Insurers' existing net loss and allocated loss adjustment reserves as of December 31, 2018 subject to the treaty of $1.816 billion for accidents and losses prior to December 31, 2018. As of December 31, 2019, the Company has recorded a reinsurance recoverable under the Navigators ADC of $107 as estimated ceded loss development on the 2018 and prior accident year reserves of $207 exceed the $100 deductible. While the reinsurance recoverable is $107 , the Company has also recorded a $16 deferred gain within other liabilities since, under retroactive reinsurance accounting, ceded losses in excess of the $91 of ceded premium paid must be recognized as a deferred gain. As the Company has ceded $107 of the $300 available limit, there is $193 of remaining limit available as of December 31, 2019. Reconciliation of Loss Development to Liability for Unpaid Losses and Loss Adjustment Expenses As of December 31, 2019 Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Subtotal Reserve Line Cumulative Incurred for Accident Years Displayed in Triangles Cumulative Paid for Accident Years Displayed in Triangles Unpaid for Accident Years not Displayed in Triangles Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance Discount Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance Reinsurance and Other Recoverables Liability for Unpaid Losses and Loss Adjustment Expenses Workers' compensation $ 18,990 $ (10,991 ) $ 2,446 $ 345 $ (372 ) $ 10,418 $ 2,093 $ 12,511 General liability 5,711 (2,828 ) 471 140 — 3,494 630 4,124 Marine 1,226 (974 ) 19 8 — 279 135 414 Package business 6,817 (5,215 ) 49 91 — 1,742 33 1,775 Commercial property 2,939 (2,520 ) 29 13 — 461 162 623 Commercial automobile liability 3,698 (2,739 ) 11 22 — 992 73 1,065 Commercial automobile physical damage 206 (194 ) 3 — — 15 (1 ) 14 Professional liability 1,796 (863 ) 86 31 — 1,050 549 1,599 Bond 637 (353 ) 29 24 — 337 13 350 Assumed Reinsurance 1,005 (824 ) 4 5 — 190 25 215 Personal automobile liability 11,985 (10,518 ) 25 68 — 1,560 27 1,587 Personal automobile physical damage 1,531 (1,507 ) 6 3 — 33 — 33 Homeowners 7,443 (6,958 ) 4 38 — 527 41 568 Other ongoing business 231 — (16 ) 215 312 527 Asbestos and environmental [1] 1,147 — — 1,147 1,219 2,366 Other operations [1] 375 151 — 526 (36 ) 490 Total P&C $ 63,984 $ (46,484 ) $ 4,935 $ 939 $ (388 ) $ 22,986 $ 5,275 $ 28,261 [1] Asbestos and environmental and other operations include asbestos, environmental and other latent exposures not foreseen when coverages were written, including, but not limited to, potential liability for pharmaceutical products, silica, talcum powder, head injuries, lead paint, construction defects, molestation and other long-tail liabilities. These reserve lines do not have significant paid or incurred loss development for the most recent ten accident years and therefore do not have loss development displayed in triangles. The reserve lines in the above table and the loss triangles that follow represent the significant lines of business for which the Company regularly reviews the appropriateness of reserve levels. These reserve lines differ from the reserve lines reported on a statutory basis, as prescribed by the National Association of Insurance Commissioners ("NAIC"). The cumulative incurred losses displayed in the above table include the full reinsurance benefit of ceding $107 of losses to the Navigators ADC even though $16 of that benefit has been recorded as a deferred gain within other liabilities and recognized as a charge to earnings in 2019 within incurred loss and loss adjustment expenses included in the consolidated statement of operations. The $107 of Navigators Insurers losses ceded to the Navigators ADC included in the following triangles $28 for general liability, $25 for professional liability, $13 for assumed reinsurance, $12 for commercial auto, $9 for marine and $8 for commercial property and included $12 for older accident years and lines of business that are not in the following triangles. The following loss triangles present historical loss development for incurred and paid claims by accident year, including loss development on Navigators Insurers reserves prior to and after the May 23, 2019 acquisition date. Because the loss triangles include pre-acquisition date changes in ultimate incurred loss estimates for Navigators Insurers’ reserves, changes in reserve development evident in the incurred loss triangles may differ from prior accident year development recorded by the Company as shown in the (Favorable) Unfavorable Prior Accident Year Development table above as that only includes changes in Navigators Insurers’ reserves post acquisition. In addition, the incurred losses triangles include reserve development on both catastrophe and non-catastrophe claims whereas the (Favorable) Unfavorable Prior Accident Year Development table above shows the total amount of catastrophe reserve development across all lines of business on a single line. Triangles are limited to the number of years for which claims incurred typically remain outstanding, not exceeding ten years. Short-tail lines, which represent claims generally expected to be paid within a few years, have three years of claim development displayed. For marine, commercial property, professional liability and assumed reinsurance lines, the Company has provided eight years of claims development as data for earlier periods was not available for the Lloyds syndicate. IBNR reserves shown in loss triangles include reserve for incurred but not reported claims as well as reserves for expected development on reported claims. Incurred and cumulative paid losses in currencies other than the U.S. dollar have been converted into U.S. dollars using the exchange rates as of December 31, 2019. Workers' Compensation Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 IBNR Claims 2010 $ 1,560 $ 1,775 $ 1,814 $ 1,858 $ 1,857 $ 1,882 $ 1,881 $ 1,878 $ 1,892 $ 1,888 $ 221 156,802 2011 2,013 2,099 2,204 2,206 2,221 2,224 2,232 2,242 2,239 314 177,910 2012 2,185 2,207 2,207 2,181 2,168 2,169 2,154 2,146 350 171,341 2013 2,020 1,981 1,920 1,883 1,861 1,861 1,850 415 151,315 2014 1,869 1,838 1,789 1,761 1,713 1,692 477 126,104 2015 1,873 1,835 1,801 1,724 1,714 540 113,819 2016 1,772 1,772 1,780 1,767 665 111,763 2017 1,862 1,869 1,840 864 111,096 2018 1,916 1,917 1,039 116,915 2019 1,937 1,359 110,515 Total $ 18,990 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 $ 316 $ 709 $ 970 $ 1,154 $ 1,287 $ 1,374 $ 1,439 $ 1,489 $ 1,522 $ 1,553 2011 371 841 1,156 1,368 1,518 1,622 1,690 1,746 1,786 2012 359 809 1,106 1,313 1,436 1,529 1,587 1,644 2013 304 675 917 1,071 1,175 1,260 1,304 2014 275 598 811 960 1,041 1,099 2015 261 576 778 909 1,004 2016 255 579 779 908 2017 261 575 778 2018 283 624 2019 291 Total $ 10,991 General Liability Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 IBNR Claims 2010 $ 436 $ 445 $ 432 $ 437 $ 428 $ 431 $ 465 $ 467 $ 483 $ 482 $ 41 23,941 2011 431 420 408 405 404 416 417 426 420 48 22,310 2012 423 402 399 392 410 408 421 413 65 16,501 2013 455 442 456 484 488 502 505 77 13,643 2014 506 475 481 494 513 522 114 14,318 2015 556 560 554 594 633 141 15,088 2016 613 583 607 633 254 15,984 2017 626 614 613 359 15,039 2018 692 669 516 15,368 2019 821 744 11,628 Total $ 5,711 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 $ 20 $ 68 $ 149 $ 230 $ 284 $ 327 $ 387 $ 409 $ 418 $ 427 2011 15 61 123 200 255 303 330 348 362 2012 13 55 101 170 233 280 305 323 2013 13 53 141 233 320 372 398 2014 15 42 130 214 304 358 2015 10 55 156 278 409 2016 12 52 131 283 2017 15 67 156 2018 21 83 2019 29 Total $ 2,828 Marine Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 IBNR Claims 2012 $ 195 $ 219 $ 179 $ 168 $ 163 $ 163 $ 167 $ 163 $ — 6,766 2013 148 152 134 135 139 134 137 (2 ) 6,601 2014 163 159 157 164 163 168 (1 ) 7,093 2015 158 145 145 148 133 (8 ) 10,038 2016 139 142 137 147 (3 ) 12,959 2017 160 186 174 3 15,216 2018 144 160 5 13,130 2019 144 61 5,775 Total $ 1,226 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2012 $ 50 $ 101 $ 125 $ 139 $ 148 $ 152 $ 154 $ 158 2013 41 82 100 111 118 120 125 2014 40 80 116 130 150 156 2015 40 85 115 125 133 2016 35 80 106 122 2017 48 110 141 2018 37 104 2019 35 Total $ 974 Package Business Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 IBNR Claims 2010 $ 657 $ 662 $ 654 $ 652 $ 652 $ 651 $ 653 $ 651 $ 649 $ 647 $ 18 52,484 2011 810 792 790 800 808 814 813 812 807 26 61,045 2012 736 725 728 731 736 735 739 732 30 59,817 2013 579 565 573 585 586 592 586 32 43,556 2014 566 578 601 602 603 603 59 43,098 2015 582 588 585 583 588 69 41,965 2016 655 638 632 625 118 43,672 2017 695 702 692 192 45,836 2018 719 724 241 43,026 2019 813 392 36,824 Total $ 6,817 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 $ 270 $ 414 $ 487 $ 539 $ 570 $ 601 $ 613 $ 618 $ 625 $ 627 2011 377 555 621 684 727 748 762 772 774 2012 286 486 560 616 652 673 687 694 2013 225 339 414 467 504 522 541 2014 226 345 416 468 507 525 2015 212 332 383 445 486 2016 225 353 410 465 2017 235 372 447 2018 237 402 2019 254 Total $ 5,215 Commercial Property Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 IBNR Claims 2012 $ 369 $ 333 $ 334 $ 334 $ 336 $ 335 $ 334 $ 333 $ 1 26,786 2013 268 252 253 252 249 248 247 — 21,601 2014 293 281 282 280 279 281 — 21,017 2015 298 301 302 301 305 1 21,005 2016 405 419 399 406 1 23,710 2017 577 515 455 21 24,235 2018 450 436 38 21,460 2019 476 93 18,634 Total $ 2,939 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2012 $ 182 $ 296 $ 317 $ 326 $ 331 $ 331 $ 331 $ 330 2013 161 223 238 243 242 244 245 2014 170 250 270 279 279 279 2015 179 257 284 296 301 2016 215 342 378 395 2017 229 378 412 2018 188 344 2019 214 Total $ 2,520 Commercial Automobile Liability Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 IBNR Claims 2010 $ 290 $ 291 $ 309 $ 335 $ 338 $ 344 $ 344 $ 341 $ 340 $ 339 $ 3 38,158 2011 272 310 356 356 366 365 363 362 363 6 39,298 2012 311 377 391 402 395 389 387 388 6 36,043 2013 311 318 334 341 340 339 335 11 32,228 2014 309 317 331 337 341 334 14 29,597 2015 308 358 372 356 356 18 28,487 2016 385 393 390 391 44 29,036 2017 372 383 379 76 26,089 2018 349 396 153 24,016 2019 417 291 22,455 Total $ 3,698 Cumulative Paid Losses & Allocated Loss Adjustment Expense, Net of Reinsurance For the years ended December 31 (Unaudited) Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 $ 60 $ 132 $ 199 $ 266 $ 305 $ 315 $ 324 $ 330 $ 334 $ 335 2011 63 133 211 274 316 339 348 353 354 2012 65 143 234 307 346 359 372 376 2013 62 130 202 259 295 311 321 2014 59 131 197 252 299 309 2015 62 142 207 267 314 2016 65 147 232 303 2017 60 134 211 2018 62 153 2019 63 Total $ 2,739 Commercial Automobile Physical Damage Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2017 2018 2019 IBNR Claims 2017 $ 85 $ 81 $ 81 $ 3 24,325 2018 62 62 1 20,508 2019 63 2 18,626 Total $ 206 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2017 2018 2019 2017 $ 74 $ 79 $ 78 2018 54 60 2019 56 Total $ 194 Professional Liability Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Claims Made Year 2012 2013 2014 2015 2016 2017 2018 2019 IBNR Claims 2012 $ 242 $ 238 $ 238 $ 218 $ 221 $ 220 $ 219 $ 225 $ 19 7,025 2013 207 195 187 174 173 173 171 24 5,970 2014 187 183 181 177 179 182 26 6,705 2015 164 174 179 190 213 51 7,171 2016 183 176 203 196 66 8,288 2017 205 203 231 103 9,224 2018 247 280 155 9,517 2019 298 252 7,396 Total $ 1,796 Cumulative Paid Losses & Allocated Loss Adjust |
Reserve for Future Policy Benef
Reserve for Future Policy Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Insurance Loss Reserves [Abstract] | |
Reserve for Future Policy Benefits | 11 . RESERVE FOR UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES Property and Casualty Insurance Products Rollforward of Liabilities for Unpaid Losses and Loss Adjustment Expenses For the years ended December 31, 2019 2018 2017 Beginning liabilities for unpaid losses and loss adjustment expenses, gross $ 24,584 $ 23,775 $ 22,545 Reinsurance and other recoverables 4,232 3,957 3,488 Beginning liabilities for unpaid losses and loss adjustment expenses, net 20,352 19,818 19,057 Navigators Group acquisition 2,001 — — Provision for unpaid losses and loss adjustment expenses Current accident year 7,463 7,107 7,381 Prior accident year development [1] (65 ) (167 ) (41 ) Total provision for unpaid losses and loss adjustment expenses 7,398 6,940 7,340 Change in deferred gain on retroactive reinsurance included in other liabilities [1] (16 ) — — Payments Current accident year (2,374 ) (2,452 ) (2,751 ) Prior accident years (4,374 ) (3,954 ) (3,828 ) Total payments (6,748 ) (6,406 ) (6,579 ) Foreign currency adjustment (1 ) — — Ending liabilities for unpaid losses and loss adjustment expenses, net 22,986 20,352 19,818 Reinsurance and other recoverables 5,275 4,232 3,957 Ending liabilities for unpaid losses and loss adjustment expenses, gross $ 28,261 $ 24,584 $ 23,775 [1] Prior accident year development does not include the benefit of a portion of losses ceded under the Navigators ADC which, under retroactive reinsurance accounting, is deferred and is recognized over the period the ceded losses are recovered in cash from NICO . For additional information regarding the Navigators ADC agreement, please refer to Adverse Development Covers discussion below. Property and Casualty Insurance Products Reserves, Net of Reinsurance, that are Discounted For the years ended December 31, 2019 2018 2017 Liability for unpaid losses and loss adjustment expenses, at undiscounted amounts $ 1,331 $ 1,331 $ 1,387 Amount of discount 388 388 410 Carrying value of liability for unpaid losses and loss adjustment expenses $ 943 $ 943 $ 977 Discount accretion included in losses and loss adjustment expenses $ 33 $ 40 $ 30 Weighted average discount rate 2.91 % 2.98 % 3.06 % Range of discount rates 1.76 % - 14.03 % 1.77 % - 14.15 % 1.77 % - 14.15 % The current accident year benefit from discounting property and casualty insurance product reserves was $33 in 2019 , $12 in 2018 and $15 in 2017 . Reserves are discounted at rates in effect at the time claims were incurred, ranging from 1.76% for accident year 2012 to 14.03% for accident year 1981. The reserves recorded for the Company’s property and casualty insurance products at December 31, 2019 represent the Company’s best estimate of its ultimate liability for losses and loss adjustment expenses related to losses covered by policies written by the Company. However, because of the significant uncertainties surrounding reserves it is possible that management’s estimate of the ultimate liabilities for these claims may change and that the required adjustment to recorded reserves could exceed the currently recorded reserves by an amount that could be material to the Company’s results of operations or cash flows. Losses and loss adjustment expenses are also impacted by trends including frequency and severity as well as changes in the legislative and regulatory environment. In the case of the reserves for asbestos exposures, factors contributing to the high degree of uncertainty in the ultimate settlement of the liabilities gross of reinsurance include inadequate loss development patterns, plaintiffs’ expanding theories of liability, the risks inherent in major litigation, and inconsistent emerging legal doctrines. In the case of the reserves for environmental exposures before reinsurance, factors contributing to the high degree of uncertainty in gross reserves include expanding theories of liabilities and damages, the risks inherent in major litigation, inconsistent decisions concerning the existence and scope of coverage for environmental claims, and uncertainty as to the monetary amount being sought by the claimant from the insured. (Favorable) Unfavorable Prior Accident Year Development For the years ended December 31, 2019 2018 2017 Workers’ compensation $ (120 ) $ (164 ) $ (79 ) Workers’ compensation discount accretion 33 40 28 General liability 61 52 11 Marine 8 — — Package business (47 ) (26 ) (25 ) Commercial property (11 ) (12 ) (8 ) Professional liability 29 (12 ) 1 Bond (3 ) 2 32 Assumed Reinsurance 3 — — Automobile liability - Commercial Lines 27 (15 ) 17 Automobile liability - Personal Lines (38 ) (18 ) — Homeowners 3 (25 ) (14 ) Net asbestos reserves — — — Net environmental reserves — — — Catastrophes (42 ) (49 ) (16 ) Uncollectible reinsurance (30 ) 22 (15 ) Other reserve re-estimates, net 46 38 27 Total prior accident year development, including full benefit for the ADC cession (81 ) (167 ) (41 ) Change in deferred gain on retroactive reinsurance included in other liabilities 16 — — Total prior accident year development $ (65 ) $ (167 ) $ (41 ) 2019 re-estimates of prior accident year reserves Workers’ compensation reserves were reduced, principally in small commercial driven by lower than previously estimated claim severity for the 2014 through 2017 accident years and, to a lesser extent, in national accounts due to lower estimated claim severity, primarily for accident years 2013 and prior. General liability reserves were increased, primarily due to reserve increases in small commercial for accident years 2017 and 2018 due to higher frequency of high-severity bodily injury claims, reserve increases in middle & large commercial for accident years 2015 to 2018 due to higher estimated severity, as well as increased estimated severity on the acquired Navigators Group book of business related to U.S. construction, premises liability, products liability and excess casualty, mostly related to accident years 2014 to 2017. In addition, an increase in reserves for mass torts for 2009 and prior accident years was offset by a decrease in reserves for extra contractual liability claims for more recent accident years, including the 2018 accident year. Marine reserves were increased, principally related to pollution exposure from the 1980s and 1990s related to the Navigators Group book of business. Package business reserves were decreased, primarily due to favorable emergence on property claims related to accident years 2016 through 2018 and due to favorable development of loss adjustment expenses on general liability claims for 2017 and prior accident years. Commercial property reserves were decreased, principally due to favorable emergence of reported losses, including on the acquired Navigators Group book of business, related to offshore energy in accident years 2017 to 2018 and construction engineering across accident years 2015 to 2018. Professional liability reserves were increased, primarily due to increased securities litigation and large loss activity, including wrongful termination and discrimination claims, related to accident years 2017 and 2018 and increased estimated frequency and severity of directors’ and officers’ reserves on the Navigators Group book of business, principally for the 2014 to 2018 accident years. Partially offsetting the increase was a decrease in average severity on public company directors’ and officers’ claim reserves and errors and omissions claim reserves for accident years 2014 and prior. Automobile liability reserves were decreased in Personal Lines and increased in Commercial Lines. The decrease in Personal Lines was due to the emergence of lower estimated severity in automobile liability for accident year 2017. The increase in Commercial Lines was due to higher estimated severity on national accounts, principally in accident years 2017 and 2018, and higher estimated severity for accident year 2018 in small commercial and middle market, partially offset by lower estimated severity for 2017 and prior accident years in small commercial and middle market. Catastrophes reserves were reduced, primarily as a result of lower estimated net losses from 2017 hurricanes Harvey and Irma and the 2017 California wildfires. While gross loss reserve estimates for the 2018 California wildfires were also reduced, this was largely offset by a reduction in reinsurance recoverables resulting in very little change to estimated net losses from those wildfires . In December, 2019, the judge overseeing the bankruptcy of PG&E Corporation and Pacific Gas and Electric Company (together, “PG&E”) approved an $11 billion settlement with insurers representing approximately 85 percent of insurance subrogation claims to resolve all such claims arising from the 2017 Northern California wildfires and 2018 Camp wildfire. The bankruptcy court has also approved PG&E’s settlement with individual wildfire claimants. Those settlements are subject to confirmation by the bankruptcy court of a chapter 11 plan of reorganization ("PG&E Plan") which implements the terms of the settlements. If the PG&E Plan is approved, certain of the Company’s insurance subsidiaries would be entitled to settlement payments of subrogation claims. Based on reserve estimates submitted with the subrogation request, the amount our subsidiaries could collect from PG&E, if any, would be approximately $300 to $325 but could be more or less than that amount depending on how the Company’s ultimate paid claims subject to subrogation compare to other insurers’ ultimate paid claims subject to subrogation. Confirmation of the PG&E Plan and amount of the Company’s ultimate subrogation recoveries from PG&E are subject to uncertainty, including but not limited to resolution of objections raised by the Governor of California and others. Given the uncertainty about whether the PG&E Plan will be confirmed, the Company has not recognized a benefit from potential subrogation from PG&E and will evaluate in future periods when more information becomes known. In connection with the 2018 Camp wildfire, the Company has recognized a $12 reinsurance recoverable for losses incurred in excess of a $350 per occurrence retention. Under its 2018 property aggregate catastrophe treaty, the Company has recognized a reinsurance recoverable for aggregate catastrophe losses in excess of an $825 retention, with the recoverable currently estimated at $45 . As such, the first $57 of subrogation recoveries would be offset by a $57 reduction in these reinsurance recoverables resulting in no net benefit to income. Uncollectible reinsurance reserves were reduced due to higher than expected recoveries from reinsurers in older accident years. Other reserve re-estimates, net, primarily represents an increase in unallocated loss adjustment expense ('ULAE") reserves in Property & Casualty Other Operations that was driven by an increase in gross asbestos and environmental reserves, as well as higher than anticipated ULAE costs in recent years, prompting an increase in the projected ULAE run rate. 2018 re-estimates of prior accident year reserves Workers’ compensation reserves were reduced in small commercial and middle market, primarily for accident years 2014 and 2015, as claim severity has emerged favorably compared to previous reserve estimates. Also contributing was a reduction in estimated reserves for ULAE. General liability reserves were increased, primarily due to an increase in reserves for higher hazard general liability exposures in middle market for accident years 2009 to 2017, partially offset by a decrease in reserves for other lines within middle market, including premises and operations, umbrella and products liability, principally for accident years 2015 and prior. Contributing to the increase in reserves for higher hazard general liability exposures was an increase in average claim severity, including from large losses and, in more recent accident years, an increase in claim frequency. Contributing to the reduction in reserves for other middle market lines were more favorable outcomes due to initiatives to reduce legal expenses. In addition, reserve increases for claims with lead paint exposure were offset by reserve decreases for other mass torts and extra-contractual liability claims. Package business reserves were reduced, primarily due to lower reserve estimates for both liability and property for accident years 2010 and prior, including a recovery of loss adjustment expenses for the 2005 accident year. Commercial property reserves were r educed, driven by an increase in estimated reinsurance recoverables on middle market property losses from the 2017 accident year. Professional liability reserves were reduced, principally for accident years 2014 and prior, for directors and officers liability claims principally due to a number of older claims closing with limited or no payment. Automobile liability reserves were reduced, primarily driven by reduced estimates of loss adjustment expenses in small commercial for recent accident years and favorable development in personal automobile liability for accident years 2014 to 2017, principally due to lower severity, including with uninsured and underinsured motorist claims. Homeowners reserves were reduced, primarily in accident years 2013 to 2017, driven by lower than expected severity across multiple perils. Asbestos and environmental reserves were unchanged as $238 of adverse development arising from the fourth quarter 2018 comprehensive annual review was offset by a $238 recoverable from NICO. For additional information related to the adverse development cover with NICO, see Note 8 - Reinsurance and Note 14 - Commitments and Contingencies of Notes to Consolidated Financial Statements. Catastrophe reserves were r educed, primarily as a result of lower estimated net losses from 2017 catastrophes, principally related to hurricanes Harvey and Irma. Before reinsurance, estimated losses for 2017 catastrophe events decreased by $133 , resulting in a decrease in reinsurance recoverables of $90 as the Company no longer expects to recover under the 2017 Property Aggregate reinsurance treaty as aggregate ultimate losses for 2017 catastrophe events are now projected to be less than $850 . Uncollectible reinsurance reserves were increased due to lower anticipated recoveries related to older accident years. Other reserve re-estimates, net, primarily represents an increase in ULAE reserves in Property & Casualty Other Operations that was principally driven by an increase in expected claim handling costs associated with asbestos and environmental and mass tort claims. 2017 re-estimates of prior accident year reserves Workers’ compensation reserves were reduced in small commercial and middle market, given the continued emergence of favorable frequency, primarily for accident years 2013 to 2015, as well as a reduction in estimated reserves for unallocated loss adjustment expenses, partially offset by strengthening reserves for captive programs within specialty commercial. General liability reserves were in creased for the 2013 to 2016 accident years on a class of business that insures service and maintenance contractors. This increase was partially offset by a decrease in recent accident year reserves for other middle market general liability reserves. Package business reserves were reduced for accident years 2013 and prior largely due to reducing the Company’s estimate of allocated loss adjustment expenses incurred to settle the claims. Bond business reserves increased for customs bonds written between 2000 and 2010 which was partly offset by a reduction in reserves for recent accident years as reported losses for commercial and contract surety have emerged favorably. Automobile liability reserves within Commercial Lines were increased in small commercial and large national accounts for the 2013 to 2016 accident years, driven by higher frequency of more severe accidents, including litigated claims Asbestos and environmental reserves were unchanged as $285 of adverse development arising from the fourth quarter 2017 comprehensive annual review was offset by a $285 recoverable from NICO. For additional information related to the adverse development cover with NICO, see Note 8 - Reinsurance and Note 14 - Commitments and Contingencies of Notes to Consolidated Financial Statements. Catastrophes reserves were reduced primarily due to lower estimates of 2016 wind and hail event losses and a decrease in losses on a 2015 wildfire. Uncollectible reinsurance reserves decr eased as a result of giving greater weight to favorable collectibility experience in recent calendar periods in estimating future collections. Adverse Development Covers The Company has an adverse development cover reinsurance agreement with NICO, a subsidiary of Berkshire Hathaway Inc., to reinsure loss development after 2016 on substantially all of the Company’s asbestos and environmental reserves (the “A&E ADC”). Under the A&E ADC, the Company paid a reinsurance premium of $650 for NICO to assume adverse net loss reserve development up to $1.5 billion above the Company’s existing net A&E reserves as of December 31, 2016 of approximately $1.7 billion including reserves for A&E exposure for accident years prior to 1986 that are reported in Property & Casualty Other Operations ("Run-off A&E") and reserves for A&E exposure for accident years 1986 and subsequent from policies underwritten prior to 2016 that are reported in ongoing Commercial Lines and Personal Lines. The $650 reinsurance premium was placed into a collateral trust account as security for NICO’s claim payment obligations to the Company. The Company has retained the risk of collection on amounts due from other third-party reinsurers and continues to be responsible for claims handling and other administrative services, subject to certain conditions. The A&E ADC covers substantially all the Company’s A&E reserve development up to the reinsurance limit. Under retroactive reinsurance accounting, net adverse A&E reserve development after December 31, 2016 will result in an offsetting reinsurance recoverable up to the $1.5 billion limit. Cumulative ceded losses up to the $650 reinsurance premium paid are recognized as a dollar-for-dollar offset to direct losses incurred. Cumulative ceded losses exceeding the $650 reinsurance premium paid would result in a deferred gain. The deferred gain would be recognized over the claim settlement period in the proportion of the amount of cumulative ceded losses collected from the reinsurer to the estimated ultimate reinsurance recoveries. Consequently, until periods when the deferred gain is recognized as a benefit to earnings, cumulative adverse development of asbestos and environmental claims after December 31, 2016 in excess of $650 may result in significant charges against earnings. As of December 31, 2019, the Company has incurred $640 in cumulative adverse development on asbestos and environmental reserves that have been ceded under the A&E ADC treaty with NICO. Immediately after closing on the acquisition of Navigators Group, effective May 23, 2019, the Company purchased the Navigators ADC, an aggregate excess of loss reinsurance agreement covering adverse reserve development, from NICO on behalf of Navigators Insurers. Under the Navigators ADC, the Navigators Insurers paid NICO a reinsurance premium of $91 in exchange for reinsurance coverage of $300 of adverse net loss reserve development that attaches $100 above the Navigators Insurers' existing net loss and allocated loss adjustment reserves as of December 31, 2018 subject to the treaty of $1.816 billion for accidents and losses prior to December 31, 2018. As of December 31, 2019, the Company has recorded a reinsurance recoverable under the Navigators ADC of $107 as estimated ceded loss development on the 2018 and prior accident year reserves of $207 exceed the $100 deductible. While the reinsurance recoverable is $107 , the Company has also recorded a $16 deferred gain within other liabilities since, under retroactive reinsurance accounting, ceded losses in excess of the $91 of ceded premium paid must be recognized as a deferred gain. As the Company has ceded $107 of the $300 available limit, there is $193 of remaining limit available as of December 31, 2019. Reconciliation of Loss Development to Liability for Unpaid Losses and Loss Adjustment Expenses As of December 31, 2019 Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Subtotal Reserve Line Cumulative Incurred for Accident Years Displayed in Triangles Cumulative Paid for Accident Years Displayed in Triangles Unpaid for Accident Years not Displayed in Triangles Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance Discount Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance Reinsurance and Other Recoverables Liability for Unpaid Losses and Loss Adjustment Expenses Workers' compensation $ 18,990 $ (10,991 ) $ 2,446 $ 345 $ (372 ) $ 10,418 $ 2,093 $ 12,511 General liability 5,711 (2,828 ) 471 140 — 3,494 630 4,124 Marine 1,226 (974 ) 19 8 — 279 135 414 Package business 6,817 (5,215 ) 49 91 — 1,742 33 1,775 Commercial property 2,939 (2,520 ) 29 13 — 461 162 623 Commercial automobile liability 3,698 (2,739 ) 11 22 — 992 73 1,065 Commercial automobile physical damage 206 (194 ) 3 — — 15 (1 ) 14 Professional liability 1,796 (863 ) 86 31 — 1,050 549 1,599 Bond 637 (353 ) 29 24 — 337 13 350 Assumed Reinsurance 1,005 (824 ) 4 5 — 190 25 215 Personal automobile liability 11,985 (10,518 ) 25 68 — 1,560 27 1,587 Personal automobile physical damage 1,531 (1,507 ) 6 3 — 33 — 33 Homeowners 7,443 (6,958 ) 4 38 — 527 41 568 Other ongoing business 231 — (16 ) 215 312 527 Asbestos and environmental [1] 1,147 — — 1,147 1,219 2,366 Other operations [1] 375 151 — 526 (36 ) 490 Total P&C $ 63,984 $ (46,484 ) $ 4,935 $ 939 $ (388 ) $ 22,986 $ 5,275 $ 28,261 [1] Asbestos and environmental and other operations include asbestos, environmental and other latent exposures not foreseen when coverages were written, including, but not limited to, potential liability for pharmaceutical products, silica, talcum powder, head injuries, lead paint, construction defects, molestation and other long-tail liabilities. These reserve lines do not have significant paid or incurred loss development for the most recent ten accident years and therefore do not have loss development displayed in triangles. The reserve lines in the above table and the loss triangles that follow represent the significant lines of business for which the Company regularly reviews the appropriateness of reserve levels. These reserve lines differ from the reserve lines reported on a statutory basis, as prescribed by the National Association of Insurance Commissioners ("NAIC"). The cumulative incurred losses displayed in the above table include the full reinsurance benefit of ceding $107 of losses to the Navigators ADC even though $16 of that benefit has been recorded as a deferred gain within other liabilities and recognized as a charge to earnings in 2019 within incurred loss and loss adjustment expenses included in the consolidated statement of operations. The $107 of Navigators Insurers losses ceded to the Navigators ADC included in the following triangles $28 for general liability, $25 for professional liability, $13 for assumed reinsurance, $12 for commercial auto, $9 for marine and $8 for commercial property and included $12 for older accident years and lines of business that are not in the following triangles. The following loss triangles present historical loss development for incurred and paid claims by accident year, including loss development on Navigators Insurers reserves prior to and after the May 23, 2019 acquisition date. Because the loss triangles include pre-acquisition date changes in ultimate incurred loss estimates for Navigators Insurers’ reserves, changes in reserve development evident in the incurred loss triangles may differ from prior accident year development recorded by the Company as shown in the (Favorable) Unfavorable Prior Accident Year Development table above as that only includes changes in Navigators Insurers’ reserves post acquisition. In addition, the incurred losses triangles include reserve development on both catastrophe and non-catastrophe claims whereas the (Favorable) Unfavorable Prior Accident Year Development table above shows the total amount of catastrophe reserve development across all lines of business on a single line. Triangles are limited to the number of years for which claims incurred typically remain outstanding, not exceeding ten years. Short-tail lines, which represent claims generally expected to be paid within a few years, have three years of claim development displayed. For marine, commercial property, professional liability and assumed reinsurance lines, the Company has provided eight years of claims development as data for earlier periods was not available for the Lloyds syndicate. IBNR reserves shown in loss triangles include reserve for incurred but not reported claims as well as reserves for expected development on reported claims. Incurred and cumulative paid losses in currencies other than the U.S. dollar have been converted into U.S. dollars using the exchange rates as of December 31, 2019. Workers' Compensation Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 IBNR Claims 2010 $ 1,560 $ 1,775 $ 1,814 $ 1,858 $ 1,857 $ 1,882 $ 1,881 $ 1,878 $ 1,892 $ 1,888 $ 221 156,802 2011 2,013 2,099 2,204 2,206 2,221 2,224 2,232 2,242 2,239 314 177,910 2012 2,185 2,207 2,207 2,181 2,168 2,169 2,154 2,146 350 171,341 2013 2,020 1,981 1,920 1,883 1,861 1,861 1,850 415 151,315 2014 1,869 1,838 1,789 1,761 1,713 1,692 477 126,104 2015 1,873 1,835 1,801 1,724 1,714 540 113,819 2016 1,772 1,772 1,780 1,767 665 111,763 2017 1,862 1,869 1,840 864 111,096 2018 1,916 1,917 1,039 116,915 2019 1,937 1,359 110,515 Total $ 18,990 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 $ 316 $ 709 $ 970 $ 1,154 $ 1,287 $ 1,374 $ 1,439 $ 1,489 $ 1,522 $ 1,553 2011 371 841 1,156 1,368 1,518 1,622 1,690 1,746 1,786 2012 359 809 1,106 1,313 1,436 1,529 1,587 1,644 2013 304 675 917 1,071 1,175 1,260 1,304 2014 275 598 811 960 1,041 1,099 2015 261 576 778 909 1,004 2016 255 579 779 908 2017 261 575 778 2018 283 624 2019 291 Total $ 10,991 General Liability Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 IBNR Claims 2010 $ 436 $ 445 $ 432 $ 437 $ 428 $ 431 $ 465 $ 467 $ 483 $ 482 $ 41 23,941 2011 431 420 408 405 404 416 417 426 420 48 22,310 2012 423 402 399 392 410 408 421 413 65 16,501 2013 455 442 456 484 488 502 505 77 13,643 2014 506 475 481 494 513 522 114 14,318 2015 556 560 554 594 633 141 15,088 2016 613 583 607 633 254 15,984 2017 626 614 613 359 15,039 2018 692 669 516 15,368 2019 821 744 11,628 Total $ 5,711 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 $ 20 $ 68 $ 149 $ 230 $ 284 $ 327 $ 387 $ 409 $ 418 $ 427 2011 15 61 123 200 255 303 330 348 362 2012 13 55 101 170 233 280 305 323 2013 13 53 141 233 320 372 398 2014 15 42 130 214 304 358 2015 10 55 156 278 409 2016 12 52 131 283 2017 15 67 156 2018 21 83 2019 29 Total $ 2,828 Marine Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 IBNR Claims 2012 $ 195 $ 219 $ 179 $ 168 $ 163 $ 163 $ 167 $ 163 $ — 6,766 2013 148 152 134 135 139 134 137 (2 ) 6,601 2014 163 159 157 164 163 168 (1 ) 7,093 2015 158 145 145 148 133 (8 ) 10,038 2016 139 142 137 147 (3 ) 12,959 2017 160 186 174 3 15,216 2018 144 160 5 13,130 2019 144 61 5,775 Total $ 1,226 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2012 $ 50 $ 101 $ 125 $ 139 $ 148 $ 152 $ 154 $ 158 2013 41 82 100 111 118 120 125 2014 40 80 116 130 150 156 2015 40 85 115 125 133 2016 35 80 106 122 2017 48 110 141 2018 37 104 2019 35 Total $ 974 Package Business Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 IBNR Claims 2010 $ 657 $ 662 $ 654 $ 652 $ 652 $ 651 $ 653 $ 651 $ 649 $ 647 $ 18 52,484 2011 810 792 790 800 808 814 813 812 807 26 61,045 2012 736 725 728 731 736 735 739 732 30 59,817 2013 579 565 573 585 586 592 586 32 43,556 2014 566 578 601 602 603 603 59 43,098 2015 582 588 585 583 588 69 41,965 2016 655 638 632 625 118 43,672 2017 695 702 692 192 45,836 2018 719 724 241 43,026 2019 813 392 36,824 Total $ 6,817 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 $ 270 $ 414 $ 487 $ 539 $ 570 $ 601 $ 613 $ 618 $ 625 $ 627 2011 377 555 621 684 727 748 762 772 774 2012 286 486 560 616 652 673 687 694 2013 225 339 414 467 504 522 541 2014 226 345 416 468 507 525 2015 212 332 383 445 486 2016 225 353 410 465 2017 235 372 447 2018 237 402 2019 254 Total $ 5,215 Commercial Property Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 IBNR Claims 2012 $ 369 $ 333 $ 334 $ 334 $ 336 $ 335 $ 334 $ 333 $ 1 26,786 2013 268 252 253 252 249 248 247 — 21,601 2014 293 281 282 280 279 281 — 21,017 2015 298 301 302 301 305 1 21,005 2016 405 419 399 406 1 23,710 2017 577 515 455 21 24,235 2018 450 436 38 21,460 2019 476 93 18,634 Total $ 2,939 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2012 $ 182 $ 296 $ 317 $ 326 $ 331 $ 331 $ 331 $ 330 2013 161 223 238 243 242 244 245 2014 170 250 270 279 279 279 2015 179 257 284 296 301 2016 215 342 378 395 2017 229 378 412 2018 188 344 2019 214 Total $ 2,520 Commercial Automobile Liability Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 IBNR Claims 2010 $ 290 $ 291 $ 309 $ 335 $ 338 $ 344 $ 344 $ 341 $ 340 $ 339 $ 3 38,158 2011 272 310 356 356 366 365 363 362 363 6 39,298 2012 311 377 391 402 395 389 387 388 6 36,043 2013 311 318 334 341 340 339 335 11 32,228 2014 309 317 331 337 341 334 14 29,597 2015 308 358 372 356 356 18 28,487 2016 385 393 390 391 44 29,036 2017 372 383 379 76 26,089 2018 349 396 153 24,016 2019 417 291 22,455 Total $ 3,698 Cumulative Paid Losses & Allocated Loss Adjustment Expense, Net of Reinsurance For the years ended December 31 (Unaudited) Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 $ 60 $ 132 $ 199 $ 266 $ 305 $ 315 $ 324 $ 330 $ 334 $ 335 2011 63 133 211 274 316 339 348 353 354 2012 65 143 234 307 346 359 372 376 2013 62 130 202 259 295 311 321 2014 59 131 197 252 299 309 2015 62 142 207 267 314 2016 65 147 232 303 2017 60 134 211 2018 62 153 2019 63 Total $ 2,739 Commercial Automobile Physical Damage Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2017 2018 2019 IBNR Claims 2017 $ 85 $ 81 $ 81 $ 3 24,325 2018 62 62 1 20,508 2019 63 2 18,626 Total $ 206 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2017 2018 2019 2017 $ 74 $ 79 $ 78 2018 54 60 2019 56 Total $ 194 Professional Liability Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Claims Made Year 2012 2013 2014 2015 2016 2017 2018 2019 IBNR Claims 2012 $ 242 $ 238 $ 238 $ 218 $ 221 $ 220 $ 219 $ 225 $ 19 7,025 2013 207 195 187 174 173 173 171 24 5,970 2014 187 183 181 177 179 182 26 6,705 2015 164 174 179 190 213 51 7,171 2016 183 176 203 196 66 8,288 2017 205 203 231 103 9,224 2018 247 280 155 9,517 2019 298 252 7,396 Total $ 1,796 Cumulative Paid Losses & Allocated Loss Adjust |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | 13 . DEBT The Company’s long-term debt securities are issued by HFSG Holding Company, are unsecured obligations of HFSG Holding Company, and rank on a parity with all other unsecured and unsubordinated indebtedness of HFSG Holding Company. Debt is carried net of discount and issuance cost. Interest expense on debt is included in the corporate category for segment reporting. Short-term and Long-term Debt by Issuance As of December 31, 2019 2018 Revolving Credit Facilities $ — $ — Senior Notes and Debentures 6.0% Notes, due 2019 — 413 5.5% Notes, due 2020 500 500 5.125% Notes, due 2022 — 800 2.8% Notes, due 2029 600 — 5.95% Notes, due 2036 300 300 6.625% Notes, due 2040 295 295 6.1% Notes, due 2041 409 409 6.625% Notes, due 2042 178 178 4.4% Notes, due 2048 500 500 3.6% Notes, due 2049 800 — 4.3% Notes, due 2043 300 300 Junior Subordinated Debentures 7.875% Notes, due 2042 600 600 3 Month LIBOR + 2.125% Notes, due 2067 [1] 500 500 Total Notes and Debentures 4,982 4,795 Unamortized discount and debt issuance cost [2] (134 ) (117 ) Total Debt 4,848 4,678 Less: Current maturities 500 413 Long-Term Debt $ 4,348 $ 4,265 [1] In April 2017, the Company entered into an interest rate swap agreement expiring February 15, 2027 to effectively convert the variable interest payments for this debenture into fixed interest payments of approximately 4.39% . [2] This amount includes unamortized discount of $76 and $78 as of December 31, 2019 and 2018 , respectively, on the 6.1% Notes, due 2041. The effective interest rate on the 6.1% senior notes due 2041 is 7.9% . The effective interest rate on the remaining notes does not differ materially from the stated rate. The Company incurred interest expense of $259 , $298 and $316 on debt for the years ended December 31, 2019 , 2018 and 2017 , respectively. Shelf Registrations On May 17, 2019, the Company filed with the Securities and Exchange Commission an automatic shelf registration statement (Registration No. 333-231592) for the potential offering and sale of debt and equity securities. The registration statement allows for the following types of securities to be offered: debt securities, junior subordinated debt securities, guarantees, preferred stock, common stock, depositary shares, warrants, stock purchase contracts, and stock purchase units. In that The Hartford is a well-known seasoned issuer, as defined in Rule 405 under the Securities Act of 1933, the registration statement went effective immediately upon filing and The Hartford may offer and sell an unlimited amount of securities under the registration statement during the three -year life of the registration statement. Senior Notes On January 15, 2019, The Hartford repaid at maturity the $413 principal amount of its 6.0% senior notes. In the Navigators Group acquisition, the Company assumed $265 par value 5.75% Senior notes due on October 15, 2023 with a fair value of $284 as of the acquisition date. On August 19, 2019, The Hartford issued $600 of 2.8% senior notes (“2.8% Notes”) due August 19, 2029 and $800 of 3.6% senior notes (“3.6% Notes”) due August 19, 2049 for net proceeds of approximately $1.38 billion, after deducting underwriting discounts and expenses. Under both senior note issuances, interest is payable semi-annually in arrears on August 19 and February 19, commencing February 19, 2020. The Hartford, at its option, can redeem the 2.8% Notes and the 3.6% Notes at any time, in whole or part, at a redemption price equal to the greater of 100% of the principal amount being redeemed or a make-whole amount based on a comparable maturity US Treasury plus a basis point spread, plus any accrued and unpaid interest, except the make-whole amount is not applicable within the final three months of maturity for the 2.8% Notes and the final six months of maturity for the 3.6% Notes. The spread over the comparable maturity US Treasury for determining the make-whole amount is 20 and 25 basis points for the 2.8% Notes and 3.6% Notes, respectively. After receiving proceeds from the issuance of the 2.8% Notes and 3.6% Notes, in third quarter 2019, The Hartford repaid $265 of 5.75% senior notes due 2023 that had been assumed in the Navigators Group acquisition and $800 of 5.125% senior notes due 2022 of the Hartford Financial Services Group, Inc., and recognized a loss on extinguishment of debt of $90 . Junior Subordinated Debentures Junior Subordinated Debentures by Issuance as of December 31, 2019 Issue 7.875% Debentures 3 Month LIBOR + 2.125% Face Value $ 600 $ 500 Interest Rate [1] 7.875 % [2] N/A [3] Call Date April 15, 2022 February 15, 2022 [4] Interest Rate Subsequent to Call Date [2] 3 Month LIBOR + 5.596% 3 Month LIBOR + 2.125% [5] Final Maturity April 15, 2042 February 12, 2067 [1] Interest rate in effect until call date. [2] Payable quarterly in arrears. [3] Debentures were issued on call date. [4] The original call date was February 15, 2017. Replacement Capital Covenant associated with the debenture prohibits the Company from redeeming all or any portion of the notes on or prior to February 15, 2022, unless consent from covered bondholders is obtained. [5] In April 2017, the company entered into an interest rate swap agreement expiring February 15, 2027 to effectively convert the interest payments for the 3 Month LIBOR + 2.125% debenture into fixed interest payments of approximately 4.39% . The debentures are unsecured, subordinated and junior in right of payment and upon liquidation to all of the Company’s existing and future senior indebtedness. In addition, the debentures are effectively subordinated to all of the Company’s subsidiaries’ existing and future indebtedness and other liabilities, including obligations to policyholders. The debentures do not limit the Company’s or the Company’s subsidiaries’ ability to incur additional debt, including debt that ranks senior in right of payment and upon liquidation to the debentures. The Company has the right to defer interest payments for up to a consecutive ten years without giving rise to an event of default. Deferred interest will continue to accrue and will accrue additional interest at the then applicable interest rate. If the Company defers interest payments, the Company generally may not make payments on or redeem or purchase any shares of its capital stock or any of its debt securities or guarantees that rank upon liquidation, dissolution or winding up equally with or junior to the debentures, subject to certain limited exceptions. The 7.875% and 3 Month LIBOR plus 2.125% debentures may be redeemed in whole prior to the call date upon certain tax or rating agency events, at a price equal to the greater of 100% of the principal amount being redeemed and the applicable make-whole amount plus any accrued and unpaid interest. The Company may elect to redeem the 7.875% and 3 Month LIBOR plus 2.125% debentures in whole or in part on or after the call date for the principal amount being redeemed plus accrued and unpaid interest to the date of redemption. In connection with the offering of the 3 Month LIBOR plus 2.125% debenture, the Company entered into a Replacement Capital Covenant ("RCC") for the benefit of holders of one or more designated series of the Company's indebtedness, initially the Company's 4.3% notes due 2043. Under the terms of the RCC, if the Company redeems the debenture any time prior to February 12, 2047 (or such earlier date on which the RCC terminates by its terms) it can only do so with the proceeds from the sale of certain qualifying replacement securities. The RCC also prohibits the Company from redeeming all or any portion of the notes on or prior to February 15, 2022. In July 2017, the U.K. Financial Conduct Authority announced that, by the end of 2021, it intends to stop persuading or compelling banks to report information used to set LIBOR, which could result in LIBOR no longer being published after 2021 or a determination by regulators that LIBOR is no longer representative of its underlying market. The Company continues to monitor and assess the potential impacts of the discontinuation of LIBOR on its outstanding junior subordinated debentures. Long-Term Debt Long-term Debt Maturities (at par value) as of December 31, 2019 2020 - Current maturities $ 500 2021 $ — 2022 $ — 2023 $ — 2024 $ — Thereafter $ 4,482 Revolving Credit Facilities The Company has a senior unsecured five-year revolving credit facility (“Credit Facility”) that provides up to $750 of unsecured credit through March 29, 2023. Revolving loans from the Credit Facility may be in multiple currencies. U.S. dollar loans will bear interest at a floating rate equivalent to an indexed rate depending on the type of borrowing and a basis point spread based on The Hartford's credit rating and will mature no later than March 29, 2023. Letters of credit issued from the Credit Facility bear a fee based on The Hartford's credit rating and expire no later than March 29, 2024. The Credit Facility requires the Company to maintain a minimum consolidated net worth, excluding AOCI, of $9 billion, limit the ratio of senior debt to capitalization, excluding AOCI, at 35% and meet other customary covenants. The Credit Facility is for general corporate purposes. As of December 31, 2019, no borrowings were outstanding, $5 in letters of credit were issued under the Credit Facility and the Company was in compliance with all financial covenants. Lloyd's Letter of Credit As a result of the acquisition of Navigators Group, The Hartford has two letter of credit facility agreements: the Club Facility and the Bilateral Facility, which are used to provide a portion of the capital requirements at Lloyd's. In November of 2019, the Company issued £11 million of letters of credit under the Bilateral Facility. As of December 31, 2019 , uncollateralized letters of credit with an aggregate face amount of $165 and £60 million were outstanding under the Club Facility and £18 was outstanding under the Bilateral Facility. As of December 31, 2019 , the Bilateral Facility has unused capacity of $1 for issuance of additional letters of credit. Among other covenants, the Club Facility and Bilateral Facility contain financial covenants regarding tangible net worth and Funds at Lloyd's ("FAL"). As of December 31, 2019 , Navigators Group was in compliance with all financial covenants. Commercial Paper As of December 31, 2019 , the Hartford's maximum borrowings available under its commercial paper program was $750 and there was no commercial paper outstanding. The Company is dependent upon market conditions to access short-term financing through the issuance of commercial paper to investors. Collateralized Advances with Federal Home Loan Bank of Boston The Company’s subsidiaries, Hartford Fire Insurance Company (“Hartford Fire”) and HLA, are members of the Federal Home Loan Bank of Boston (“FHLBB”). Membership allows these subsidiaries access to collateralized advances, which may be short- or long-term with fixed or variable rates. FHLBB membership required the purchase of member stock and requires additional member stock ownership of 3% or 4% of any amount borrowed. Acceptable forms of collateral include real estate backed fixed maturities and mortgage loans and the amount of advances that can be taken is limited to a percentage of the fair value of the assets that ranges from a high of 97% for US government-backed fixed maturities maturing within 3 years to a low of 40% for A-rated commercial mortgage-backed fixed maturities maturing in 5 years or more. In its consolidated balance sheets, The Hartford presents the liability for advances taken based on use of the funds with advances for general corporate purposes presented in short- or long-term debt and advances to earn incremental investment income presented in other liabilities, consistent with other collateralized financing transactions such as securities lending and repurchase agreements. The Connecticut Department of Insurance permits Hartford Fire and HLA to pledge up to $1.2 billion and $0.6 billion in qualifying assets, respectively, without prior approval, to secure FHLBB advances in 2020. The pledge limit is determined annually based on statutory admitted assets and capital and surplus of Hartford Fire and HLA, respectively. As of December 31, 2019 , there were no advances outstanding under the FHLBB facility. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 14 . COMMITMENTS AND CONTINGENCIES Litigation The Hartford is involved in claims litigation arising in the ordinary course of business, both as a liability insurer defending or providing indemnity for third-party claims brought against insureds and as an insurer defending coverage claims brought against it. The Hartford accounts for such activity through the establishment of unpaid loss and loss adjustment expense reserves. Subject to the uncertainties in the following discussion under the caption “Asbestos and Environmental Claims,” management expects that the ultimate liability, if any, with respect to such ordinary-course claims litigation, after consideration of provisions made for potential losses and costs of defense, will not be material to the consolidated financial condition, results of operations or cash flows of The Hartford. The Hartford is also involved in other kinds of legal actions, some of which assert claims for substantial amounts. In addition to the matter described below, these actions include putative class actions seeking certification of a state or national class. Such putative class actions have alleged, for example, underpayment of claims or improper sales or underwriting practices in connection with various kinds of insurance policies, such as personal and commercial automobile, property, disability, life and inland marine. The Hartford also is involved in individual actions in which punitive damages are sought, such as claims alleging bad faith in the handling of insurance claims or other allegedly unfair or improper business practices. Like many other insurers, The Hartford also has been joined in actions by asbestos plaintiffs asserting, among other things, that insurers had a duty to protect the public from the dangers of asbestos and that insurers committed unfair trade practices by asserting defenses on behalf of their policyholders in the underlying asbestos cases. Management expects that the ultimate liability, if any, with respect to such lawsuits, after consideration of provisions made for estimated losses, will not be material to the consolidated financial condition of The Hartford. Nonetheless, given the large or indeterminate amounts sought in certain of these actions, and the inherent unpredictability of litigation, the outcome in certain matters could, from time to time, have a material adverse effect on the Company’s results of operations or cash flows in particular quarterly or annual periods. Run-off Asbestos and Environmental Claims The Company continues to receive A&E claims. Asbestos claims relate primarily to bodily injuries asserted by people who came in contact with asbestos or products containing asbestos. Environmental claims relate primarily to pollution and related clean-up costs. The vast majority of the Company's exposure to A&E relates to Run-off A&E, reported within the P&C Other Operations segment. In addition, since 1986, the Company has written asbestos and environmental exposures under general liability policies and pollution liability under homeowners policies, which are reported in the Commercial Lines and Personal Lines segments. Prior to 1986, the Company wrote several different categories of insurance contracts that may cover A&E claims. First, the Company wrote primary policies providing the first layer of coverage in an insured’s liability program. Second, the Company wrote excess and umbrella policies providing higher layers of coverage for losses that exhaust the limits of underlying coverage. Third, the Company acted as a reinsurer assuming a portion of those risks assumed by other insurers writing primary, excess, umbrella and reinsurance coverages. Significant uncertainty limits the ability of insurers and reinsurers to estimate the ultimate reserves necessary for unpaid gross losses and expenses related to environmental and particularly asbestos claims. The degree of variability of gross reserve estimates for these exposures is significantly greater than for other more traditional exposures. In the case of the reserves for asbestos exposures, factors contributing to the high degree of uncertainty include inadequate loss development patterns, plaintiffs’ expanding theories of liability, the risks inherent in major litigation, and inconsistent emerging legal doctrines. Furthermore, over time, insurers, including the Company, have experienced significant changes in the rate at which asbestos claims are brought, the claims experience of particular insureds, and the value of claims, making predictions of future exposure from past experience uncertain. Plaintiffs and insureds also have sought to use bankruptcy proceedings, including “pre-packaged” bankruptcies, to accelerate and increase loss payments by insurers. In addition, some policyholders have asserted new classes of claims for coverages to which an aggregate limit of liability may not apply. Further uncertainties include insolvencies of other carriers and unanticipated developments pertaining to the Company’s ability to recover reinsurance for A&E claims. Management believes these issues are not likely to be resolved in the near future. In the case of the reserves for environmental exposures, factors contributing to the high degree of uncertainty include expanding theories of liability and damages, the risks inherent in major litigation, inconsistent decisions concerning the existence and scope of coverage for environmental claims, and uncertainty as to the monetary amount being sought by the claimant from the insured. The reporting pattern for assumed reinsurance claims, including those related to A&E claims, is much longer than for direct claims. In many instances, it takes months or years to determine that the policyholder’s own obligations have been met and how the reinsurance in question may apply to such claims. The delay in reporting reinsurance claims and exposures adds to the uncertainty of estimating the related reserves. It is also not possible to predict changes in the legal and legislative environment and their effect on the future development of A&E claims. Given the factors described above, the Company believes the actuarial tools and other techniques it employs to estimate the ultimate cost of claims for more traditional kinds of insurance exposure are less precise in estimating reserves for A&E exposures. For this reason, the Company principally relies on exposure-based analysis to estimate the ultimate costs of these claims, both gross and net of reinsurance, and regularly evaluates new account information in assessing its potential A&E exposures. The Company supplements this exposure-based analysis with evaluations of the Company’s historical direct net loss and expense paid and reported experience, and net loss and expense paid and reported experience by calendar and/or report year, to assess any emerging trends, fluctuations or characteristics suggested by the aggregate paid and reported activity. While the Company believes that its current A&E reserves are appropriate, significant uncertainties limit the ability of insurers and reinsurers to estimate the ultimate reserves necessary for unpaid losses and related expenses. The ultimate liabilities, thus, could exceed the currently recorded reserves, and any such additional liability, while not estimable now, could be material to The Hartford’s consolidated operating results and liquidity. For its Run-off A&E, a s of December 31, 2019 , the Company reported $ 874 of net asbestos reserves and $ 120 of net environmental reserves. While the Company believes that its current Run-off A&E reserves are appropriate, significant uncertainties limit our ability to estimate the ultimate reserves necessary for unpaid losses and related expenses. The ultimate liabilities, thus, could exceed the currently recorded reserves, and any such additional liability, while not reasonably estimable now, could be material to The Hartford's consolidated operating results and liquidity. The Company’s A&E ADC reinsurance agreement with NICO reinsures substantially all A&E reserve development for 2016 and prior accident years, including Run-off A&E and A&E reserves included in Commercial Lines and Personal Lines. The A&E ADC has a coverage limit of $1.5 billion above the Company’s existing net A&E reserves as of December 31, 2016 of approximately $1.7 billion . As of December 31, 2019, the Company has incurred $640 in cumulative adverse development on A&E reserves that have been ceded under the A&E ADC treaty with NICO, leaving $860 of coverage available for future adverse net reserve development, if any. Cumulative adverse development of A&E claims for accident years 2016 and prior could ultimately exceed the $1.5 billion treaty limit in which case any adverse development in excess of the treaty limit would be absorbed as a charge to earnings by the Company. In these scenarios, the effect of these charges could be material to the Company’s consolidated operating results and liquidity. For more information on the A&E ADC, refer to Note 11 , Reserve for Unpaid Losses and Loss Adjustment Expenses of Notes to Consolidated Financial Statements. Management evaluates each contingent matter separately. A loss is recorded if probable and reasonably estimable. Management establishes liabilities for these contingencies at its “best estimate,” or, if no one number within the range of possible losses is more probable than any other, the Company records an estimated liability at the low end of the range of losses. Unfunded Commitments As of December 31, 2019 , the Company has outstanding commitments totaling $1,258 , of which $852 is committed to fund limited partnership and other alternative investments, which may be called by the partnership during the commitment period to fund the purchase of new investments and partnership expenses. Additionally, $191 of the outstanding commitments relate to various funding obligations associated with private debt and equity securities. The remaining outstanding commitments of $215 relate to mortgage loans. Of the $1,258 in total outstanding commitments, $130 Guaranty Funds and Other Insurance-Related Assessments In all states, insurers licensed to transact certain classes of insurance are required to become members of a guaranty fund. In most states, in the event of the insolvency of an insurer writing any such class of insurance in the state, the guaranty funds may assess its members to pay covered claims of the insolvent insurers. Assessments are based on each member's proportionate share of written premiums in the state for the classes of insurance in which the insolvent insurer was engaged. Assessments are generally limited for any year to one or two percent of the premiums written per year depending on the state. Some states permit member insurers to recover assessments paid through surcharges on policyholders or through full or partial premium tax offsets, while other states permit recovery of assessments through the rate filing process. Liabilities for guaranty fund and other insurance-related assessments are accrued when an assessment is probable, when it can be reasonably estimated, and when the event obligating the Company to pay an imposed or probable assessment has occurred. Liabilities for guaranty funds and other insurance-related assessments are not discounted and are included as part of other liabilities in the Consolidated Balance Sheets. As of December 31, 2019 and 2018 the liability balance was $89 and $97 , respectively. As of December 31, 2019 and 2018 amounts related to premium tax offsets of $2 and $2 , respectively, were included in other assets. Derivative Commitments Certain of the Company’s derivative agreements contain provisions that are tied to the financial strength ratings, as set by nationally recognized statistical agencies, of the individual legal entity that entered into the derivative agreement. If the legal entity’s financial strength were to fall below certain ratings, the counterparties to the derivative agreements could demand immediate and ongoing full collateralization and, in certain instances, enable the counterparties to terminate the agreements and demand immediate settlement of all outstanding derivative positions traded under each impacted bilateral agreement. The settlement amount is determined by netting the derivative positions transacted under each agreement. If the termination rights were to be exercised by the counterparties, it could impact the legal entity’s ability to conduct hedging activities by increasing the associated costs and decreasing the willingness of counterparties to transact with the legal entity. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that are in a net liability position as of December 31, 2019 was $81 . For this $81 , the legal entities have posted collateral of $77 in the normal course of business. Based on derivative market values as of December 31, 2019 , a downgrade of one level below the current financial strength ratings by either Moody’s or S&P would not require additional assets to be posted as collateral. Based on derivative market values as of December 31, 2019 , a downgrade of two levels below the current financial strength ratings by either Moody’s or S&P would require an additional $5 of assets to be posted as collateral. These collateral amounts could change as derivative market values change, as a result of changes in our hedging activities or to the extent changes in contractual terms are negotiated. The nature of the additional collateral that we would post, if required, would be primarily in the form of U.S. Treasury bills, U.S. Treasury notes and government agency securities. Guarantees In the ordinary course of selling businesses or entities to third parties, the Company has agreed to indemnify purchasers for losses arising subsequent to the closing due to breaches of representations and warranties with respect to the business or entity being sold or with respect to covenants and obligations of the Company and/or its subsidiaries. These obligations are typically subject to various time limitations, defined by the contract or by operation of law, such as statutes of limitation. In some cases, the maximum potential obligation is subject to contractual limitations, while in other cases such limitations are not specified or applicable. The Company does not expect to make any payments on these guarantees and is not carrying any liabilities associated with these guarantees. The Hartford has guaranteed the obligations of certain life, accident and health and annuity contracts of the life and annuity business written by Hartford Life Insurance Company between 1990 and 1997 and written by Hartford Life and Annuity Insurance Company between 1993 and 2009. After the sale of this business in May 2018, the purchaser indemnified the Company for any liability arising under the guarantees. The guarantees have no limitation as to maximum potential future payments. The Hartford has not recorded a liability and the likelihood for any payments under these guarantees is remote. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Equity | 15 . EQUITY Capital Purchase Program ("CPP") Warrants CPP warrants were issued in 2009 as part of a program established by the U.S. Department of the Treasury under the Emergency Economic Stabilization Act of 2008. The CPP warrants expired on June 26, 2019. The declaration of common stock dividends by the Company in excess of a threshold triggered a provision in the Company's warrant agreement with The Bank of New York Mellon resulting in adjustments to the CPP warrant exercise price and the number of shares deliverable for each warrant exercised (“Warrant Share Number”). Accordingly, the CPP warrant exercise price was $8.836 and $8.999 and the Warrant Share Number was 1.1 and 1.0 as of December 31, 2018 and December 31, 2017 , respectively. The exercise price was settled by the Company withholding the number of common shares issuable upon exercise of the warrants equal to the value of the aggregate exercise price of the warrants so exercised determined by reference to the closing price of the Company's common stock on the trading day on which the warrants were exercised and notice was delivered to the warrant agent. CPP warrant exercises were 1.9 million , 0.3 million and 1.8 million during the years ended December 31, 2019 , 2018 and 2017 , respectively. Equity Repurchase Program In February, 2019, the Company announced a 1.0 billion share repurchase authorization by the Board of Directors which is effective through December 31, 2020. As of December 31, 2019, the Company had $800 remaining capacity under the equity repurchase program. Any repurchase of shares under the equity repurchase program is dependent on market conditions and other factors. During the period January 1, 2020 to February 19, 2020, the Company repurchased approximately 1.4 million common shares for $82 . Preferred Stock On November 6, 2018, the Company issued 13.8 million depositary shares each representing 1/1000 th interest in a share of the Company’s 6.0% Series G non-cumulative perpetual preferred stock (“Preferred Stock”) with a liquidation preference of $25,000 per share (equivalent to $25.00 per depositary share), for net cash proceeds of $ 334 . The Preferred Stock is perpetual and has no maturity date. Dividends are recorded when declared. Dividends are payable, if declared, quarterly in arrears on the 15th day of February, May, August and November of each year. If a dividend is not declared and paid or made payable on all outstanding shares of the Preferred Stock for the latest completed dividend period, no dividends may be paid or declared on The Hartford’s common stock and The Hartford may not purchase, redeem, or otherwise acquire its common stock. The Preferred Stock is redeemable at the Company’s option in whole or in part, on or after November 15, 2023 at a redemption price of $25,000 per share, plus unpaid dividends attributable to the current dividend period . Prior to November 15, 2023, the Preferred Stock is redeemable at the Company’s option, in whole but not in part, within 90 days of the occurrence of (a) a rating agency event at a redemption price equal to $25,500 per share, plus unpaid dividends attributable to the current dividend period in circumstances where a rating agency changes its criteria used to assign equity credit to securities like the Preferred Stock; or (b) a regulatory capital event at a redemption price equal to $25,000 per share, plus unpaid dividends attributable to the current dividend period in circumstances where a capital regulator such as a state insurance regulator changes or proposes to change capital adequacy rules. Statutory Results The U.S. domestic insurance subsidiaries of The Hartford prepare their statutory financial statements in conformity with statutory accounting practices prescribed or permitted by the applicable state insurance department which vary materially from U.S. GAAP. Prescribed statutory accounting practices include publications of the NAIC, as well as state laws, regulations and general administrative rules. The differences between statutory financial statements and financial statements prepared in accordance with U.S. GAAP vary between domestic and foreign jurisdictions. The principal differences are that statutory financial statements do not reflect deferred policy acquisition costs and limit deferred income taxes, predominately use interest rate and mortality assumptions prescribed by the NAIC for life benefit reserves, generally carry bonds at amortized cost, and present reinsurance assets and liabilities net of reinsurance. For reporting purposes, statutory capital and surplus is referred to collectively as "statutory capital". U.S. Statutory Net Income (Loss) For the years ended December 31, 2019 2018 2017 Group Benefits Insurance Subsidiary $ 513 $ 390 $ (1,066 ) Property and Casualty Insurance Subsidiaries 1,391 1,114 950 Life and annuity business sold in May, 2018 — 196 369 Total $ 1,904 $ 1,700 $ 253 U.S. Statutory Capital As of December 31, 2019 2018 Group Benefits Insurance Subsidiary $ 2,644 $ 2,407 Property and Casualty Insurance Subsidiaries 10,208 7,435 Total $ 12,852 $ 9,842 Regulatory Capital Requirements The Company's U.S. insurance companies' states of domicile impose risk-based capital (“RBC”) requirements. The requirements provide a means of measuring the minimum amount of statutory capital appropriate for an insurance company to support its overall business operations based on its size and risk profile. Companies below specific trigger points or ratios are classified within certain levels, each of which requires specified corrective action. All of the Company's operating insurance subsidiaries had RBC ratios in excess of the minimum levels required by the applicable insurance regulations. Similar to the RBC ratios that are employed by U.S. insurance regulators, regulatory authorities in the international jurisdictions in which the Company operates generally establish minimum solvency requirements for insurance companies. All of the Company's international insurance subsidiaries have capital levels in excess of the minimum levels required by the applicable regulatory authorities. Dividend Restrictions Dividends to HFSG Holding Company from its insurance subsidiaries are restricted by insurance regulation. Upon the acquisition of Navigators Group, the Company’s principal insurance subsidiaries are domiciled in the United States, the United Kingdom and Belgium. The payment of dividends by Connecticut-domiciled insurers is limited under the insurance holding company laws of Connecticut. These laws require notice to and approval by the state insurance commissioner for the declaration or payment of any dividend, which, together with other dividends or distributions made within the preceding twelve months, exceeds the greater of (i) 10% of the insurer’s statutory policyholder surplus as of December 31 of the preceding year or (ii) net income (or net gain from operations, if such company is a life insurance company) for the twelve-month period ending on the thirty-first day of December last preceding, in each case determined under statutory insurance accounting principles. In addition, if any dividend of a Connecticut-domiciled insurer exceeds the insurer’s earned surplus, it requires the prior approval of the Connecticut Insurance Commissioner. Property casualty insurers domiciled in New York, including Navigators Insurance Company ("NIC") and Navigators Specialty Insurance Company ("NSIC"), generally may not, without notice to and approval by the state insurance commissioner, pay dividends out of earned surplus in any twelve‑month period that exceeds the lesser of (i) 10% of the insurer’s statutory policyholders’ surplus as of the most recent financial statement on file, or (ii) 100% of its adjusted net investment income, as defined, for the same twelve month period. As part of the New York state insurance commissioner's approval of the Navigators Group acquisition, and as is common practice, any dividend from NIC and NSIC before May 2021 will require prior approval from the state insurance commissioner. Corporate members of Lloyd's Syndicates may pay dividends to its parent to the extent of available profits that have been distributed from the syndicate in excess of the FAL capital requirement. The FAL is determined based on the syndicate’s solvency capital requirement of the syndicate under the E.U.'s Solvency II capital adequacy model, plus a Lloyd’s specific economic capital assessment. Insurers domiciled in the United Kingdom may pay dividends to its parent out of its statutory profits subject to restrictions imposed under U.K. Company law and European Insurance regulation (Solvency II). Belgium domiciled insurers may only pay dividends if, at the end of its previous fiscal year, the total amount of its assets, as reduced by its provisions and debts, are in excess of certain minimum capital thresholds calculated under Belgian law. The insurance holding company laws of the other jurisdictions in which The Hartford’s insurance subsidiaries are incorporated (or deemed commercially domiciled) generally contain similar (although in certain instances more restrictive) limitations on the payment of dividends. In addition to statutory limitations on paying dividends, the Company also takes other items into consideration when determining dividends from subsidiaries. These considerations include, but are not limited to, expected earnings and capitalization of the subsidiaries, regulatory capital requirements and liquidity requirements of the individual operating company. In 2019, the Company received $300 of dividends from HLA, $116 from Hartford Funds and $3 from a run-off HFSG subsidiary. In addition, the Company received $50 of ordinary P&C dividends that were subsequently contributed to a run-off P&C subsidiary. Excluding the dividends that were subsequently contributed to a P&C subsidiary, there were no net dividends paid by P&C subsidiaries to HFSG Holding Company in 2019. The Company’s property and casualty insurance subsidiaries have dividend capacity of $1.6 billion for 2020, with $850 to $900 of net dividends expected in 2020. HLA has dividend capacity of $534 in 2020 with $300 to $350 of dividends expected in 2020. There are no current restrictions on HFSG Holding Company's ability to pay dividends to its stockholders. Restricted Net Assets The Company's insurance subsidiaries had net assets of $15.6 billion , determined in accordance with U.S. GAAP, that were restricted from payment to the HFSG Holding Company, without prior regulatory approval at December 31, 2019 . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 16 . INCOME TAXES Income Tax Expense The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions, as applicable. Income (loss) from continuing operations before income taxes included income from domestic operations of $2,644 , $1,753 and $704 for the years ended December 31, 2019 , 2018 and 2017 , and income (losses) from foreign operations of $(84) , $0 and $19 for the years ended December 31, 2019 , 2018 and 2017 . Income Tax Expense For the years ended December 31, 2019 2018 2017 Income Tax Expense (Benefit) Current - U.S. Federal $ 8 $ (18 ) $ 116 Foreign — — 1 Total current 8 (18 ) 117 Deferred - U.S. Federal 476 286 866 Foreign (9 ) — 2 Total deferred 467 286 868 Total income tax expense $ 475 $ 268 $ 985 Income Tax Rate Reconciliation For the years ended December 31, 2019 2018 2017 Tax provision at U.S. federal statutory rate $ 538 $ 368 $ 253 Tax-exempt interest (56 ) (66 ) (123 ) Dividends received deduction (6 ) (2 ) (3 ) Executive Compensation 7 11 — Stock-based compensation (7 ) (5 ) (15 ) Tax Reform — (39 ) 877 Other (1 ) 1 (4 ) Provision for income taxes $ 475 $ 268 $ 985 Included in 2018 is a benefit of $ 39 related to Tax Reform, primarily due to the elimination of the sequestration fee on alternative minimum tax ("AMT") credits. Included in 2017 is an expense of $ 877 due to the effects of Tax Reform, primarily due to the reduction in net deferred tax assets as a result of the reduction in the federal corporate income tax rate from 35% to 21%. Deferred Taxes Deferred tax assets and liabilities on the consolidated balance sheets represent the tax consequences of differences between the financial reporting and tax basis of assets and liabilities. In lieu of recording a benefit of the tax capital loss on the sale of the life and annuity business, the Company elected to retain tax net operating loss carryovers with an estimated benefit of $ 477 as of December 31, 2018. The Company predominantly pays non-income state taxes as a percentage of premiums written which are accounted for as policy acquisition costs. State income taxes were $5 , $4 and $5 for the years ended December 31, 2019, 2018 and December 31, 2017, respectively, and are included in other expenses. The Hartford has not recorded state deferred taxes, including net deferred tax assets from state operating loss carryforwards because the Company does not expect to earn state taxable income to utilize such state tax benefits. Deferred Tax Assets (Liabilities) As of December 31, 2019 2018 Deferred Tax Assets Loss reserves and tax discount $ 214 $ 150 Unearned premium reserve and other underwriting related reserves 385 355 Investment-related items 130 183 Employee benefits 287 287 Net operating loss carryover 84 521 Other 27 1 Total Deferred Tax Assets 1,127 1,497 Valuation Allowance (4 ) — Deferred Tax Assets, Net of Valuation Allowance 1,123 1,497 Deferred Tax Liabilities Deferred acquisition costs (143 ) (104 ) Net unrealized gains on investments (458 ) (7 ) Other depreciable and amortizable assets (223 ) (135 ) Other — (3 ) Total Deferred Tax Liabilities (824 ) (249 ) Net Deferred Tax Asset $ 299 $ 1,248 The Company had net operating loss ("NOL") carryforwards in the United States and the United Kingdom for which future tax benefits of $77 and $3 , respectively, have been recognized and are included in the table above as a component of the net deferred tax asset for the year ended December 31, 2019 . The Company also has NOLs of $4 in other foreign jurisdictions for which a full valuation allowance of $4 has been established. Although the Company projects there will be sufficient future taxable income to fully recover the remainder of the NOL carryover for which benefits have been recognized, the Company's estimate of the likely realization may change over time. The U.S. NOL carryovers, if unused, would expire between 2028 and 2036. The foreign NOLs do not expire. With the exception of the foreign NOLs noted above, a deferred tax valuation allowance has not been recorded because the Company believes the deferred tax assets will more likely than not be realized. In assessing the need for a valuation allowance, management considered future taxable temporary difference reversals, future taxable income exclusive of reversing temporary differences and carryovers, taxable income in open carry back years and other tax planning strategies. From time to time, tax planning strategies could include holding a portion of debt securities with market value losses until recovery, altering the level of tax exempt securities held, making investments which have specific tax characteristics, and business considerations such as asset-liability matching. Management views such tax planning strategies as prudent and feasible and would implement them, if necessary, to realize the deferred tax assets. Uncertain Tax Positions Rollforward of Unrecognized Tax Benefits For the years ended December 31, 2019 2018 2017 Balance, beginning of period $ 14 $ 9 $ 12 Gross increases - tax positions in prior period — 5 3 Gross decreases - tax positions in prior period — — — Gross decreases - Tax Reform — — (6 ) Balance, end of period $ 14 $ 14 $ 9 The entire amount of unrecognized tax benefits, if recognized, would affect the effective tax rate in the period of the release. In addition, for the year ended December 31, 2018 the Company recorded a receivable of $ 5 related to a tax indemnification agreement associated with the life and annuity business sold in May 2018. The receivable is separate from the tax liability and is classified in other assets on the balance sheet. Other Tax Matters On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as Tax Reform. Tax Reform establishes new tax laws effective January 1, 2018, including, but not limited to, (1) reduction of the U.S. federal corporate income tax rate from 35% to 21%; (2) elimination of the corporate alternative minimum tax AMT and changing how existing AMT credits can be realized, (3) limitations on the deductibility of certain executive compensation, (4) changes to the discounting of statutory reserves for tax purposes, and (5) limitations on NOLs generated after December 31, 2017 though there is no impact to the Company’s current NOL carryforwards. Related to Tax Reform, the Company recorded a provisional net income tax expense of $877 in the period ending December 31, 2017. This net expense consisted of an $821 reduction of the Company’s deferred tax assets primarily due to the reduction in the U.S. federal corporate income tax rate and a $56 sequestration fee payable associated with refundable AMT credits. During 2018, the Company recorded income tax expense of $17 as measurement period adjustments related to Tax Reform due to the filing of the Company's 2017 federal income tax return and completion of the Aetna Group Benefits acquisition. In addition, the Company recorded an income tax benefit of $56 , reflecting the elimination of the sequestration fee payable. In total, the Company recorded a net income tax benefit from Tax Reform of $39 in 2018. In July 2019, the Company received a $421 refund of alternative minimum tax AMT credits. As of December 31, 2019 the Company had remaining AMT credit carryovers of $410 which are reflected as a current income tax receivable within other assets in the accompanying Condensed Consolidated Balance Sheets. AMT credits may be used to offset a regular tax liability for any taxable year beginning after December 31, 2017, and are refundable at an amount equal to 50 percent of the excess of the minimum tax credit for the taxable year over the amount of credit allowable for the year against regular tax liability. Any remaining credits not used against regular tax liability are refundable in the 2021 tax year to be realized in 2022. For the twelve months ended December 31, 2019, the Company offset $11 of regular tax liability with AMT credits. The federal audits for the Company have been completed through 2013, and the Company is not currently under federal examination for any open years. The statute of limitations is closed through the 2015 tax year with the exception of NOL carryforwards utilized in open tax years. Navigators Group is currently under federal audit for the 2016 year and has completed examinations through 2015. Management believes that adequate provision has been made in the Company's Condensed Consolidated Financial Statements for any potential adjustments that may result from tax examinations and other tax-related matters for all open tax years. The Company classifies interest and penalties (if applicable) as income tax expense in the consolidated financial statements. The Company recognized net interest income of $1 for the year ended December 31, 2019 , and $0 for the years ended 2018 and 2017. The Company had no interest payable as of December 31, 2019 and 2018 . The Company does not believe it would be subject to any penalties in any open tax years and, therefore, has not recorded any accrual for penalties. |
Changes in and Reclassification
Changes in and Reclassifications From Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Changes in and Reclassifications From Accumulated Other Comprehensive Income (Loss) | 17 . CHANGES IN AND RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Changes in AOCI, Net of Tax for the Year Ended December 31, 2019 Changes in Net Unrealized Gain on Securities OTTI Losses in OCI Net Gain (Loss) on Cash Flow Hedging Instruments Foreign Currency Translation Adjustments Pension and Other Postretirement Plan Adjustments AOCI, net of tax Beginning balance $ 24 $ (4 ) $ (5 ) $ 30 $ (1,624 ) $ (1,579 ) OCI before reclassifications 1,797 1 22 4 (82 ) 1,742 Amounts reclassified from AOCI (137 ) — (8 ) — 34 (111 ) OCI, net of tax 1,660 1 14 4 (48 ) 1,631 Ending balance $ 1,684 $ (3 ) $ 9 $ 34 $ (1,672 ) $ 52 Changes in AOCI, Net of Tax for the Year Ended December 31, 2018 Changes in Net Unrealized Gain on Securities OTTI Losses in OCI Net Gain (Loss) on Cash Flow Hedging Instruments Foreign Currency Translation Adjustments Pension and Other Postretirement Plan Adjustments AOCI, net of tax Beginning balance $ 1,931 $ (3 ) $ 18 $ 34 $ (1,317 ) $ 663 Cumulative effect of accounting changes, net of tax [1] 273 — 2 4 (284 ) (5 ) Adjusted balance, beginning of period 2,204 (3 ) 20 38 (1,601 ) 658 OCI before reclassifications [2] (2,245 ) — 8 (8 ) (61 ) (2,306 ) Amounts reclassified from AOCI 65 (1 ) (33 ) — 38 69 OCI, net of tax (2,180 ) (1 ) (25 ) (8 ) (23 ) (2,237 ) Ending balance $ 24 $ (4 ) $ (5 ) $ 30 $ (1,624 ) $ (1,579 ) [1] Includes reclassification to retained earnings of $88 of stranded tax effects and $93 of net unrealized gains, net of tax, related to equity securities. Refer to Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements for further information. [2] The reduction in AOCI included the effect of removing $758 of AOCI from the balance sheet when the life and annuity business was sold in May 2018. Changes in AOCI, Net of Tax for the Year ended December 31, 2017 Changes in Net Unrealized Gain on Securities OTTI Losses in OCI Net Gain on Cash Flow Hedging Instruments Foreign Currency Translation Adjustments Pension and Other Postretirement Plan Adjustments AOCI, net of tax Beginning balance $ 1,276 $ (3 ) $ 76 $ 6 $ (1,692 ) $ (337 ) OCI before reclassifications 857 — (8 ) 28 (146 ) 731 Amounts reclassified from AOCI (202 ) — (50 ) — 521 269 OCI, net of tax 655 — (58 ) 28 375 1,000 Ending balance $ 1,931 $ (3 ) $ 18 $ 34 $ (1,317 ) $ 663 Reclassifications from AOCI AOCI Amount Reclassified from AOCI Affected Line Item in the Consolidated Statement of Operations For the year ended December 31, 2019 For the year ended December 31, 2018 For the year ended December 31, 2017 Net Unrealized Gain on Securities Available-for-sale securities $ 174 $ (80 ) $ 152 Net realized capital gains (losses) 174 (80 ) 152 Total before tax 37 (17 ) 53 Income tax expense — (2 ) 103 Income (loss) from discontinued operations, net of tax $ 137 $ (65 ) $ 202 Net income (loss) OTTI Losses in OCI Other than temporary impairments $ — $ — $ — Net realized capital gains (losses) — — — Total before tax — — — Income tax expense — 1 — Income (loss) from discontinued operations, net of tax — 1 — Net income (loss) Net Gains on Cash Flow Hedging Instruments Interest rate swaps $ 2 $ 6 $ 5 Net realized capital gains (losses) Interest rate swaps 4 30 37 Net investment income Interest rate swaps 1 — — Interest expense Foreign currency swaps 3 — — Net investment income 10 36 42 Total before tax 2 8 15 Income tax expense $ — $ 5 $ 23 Income (loss) from discontinued operations, net of tax $ 8 $ 33 $ 50 Net income (loss) Pension and Other Postretirement Plan Adjustments Amortization of prior service credit $ 7 $ 7 $ 7 Insurance operating costs and other expenses Amortization of actuarial loss (50 ) (55 ) (61 ) Insurance operating costs and other expenses Settlement loss — — (747 ) Insurance operating costs and other expenses (43 ) (48 ) (801 ) Total before tax (9 ) (10 ) (280 ) Income tax expense (34 ) (38 ) (521 ) Net income (loss) Total amounts reclassified from AOCI $ 111 $ (69 ) $ (269 ) Net income (loss) |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | 18 . EMPLOYEE BENEFIT PLANS Investment and Savings Plan Substantially all U.S. employees of the Company are eligible to participate in The Hartford Investment and Savings Plan under which designated contributions may be invested in a variety of investments, including up to 10% in a fund consisting largely of common stock of The Hartford. The Company's contributions include a non-elective contribution of 2.0% of eligible compensation and a dollar-for-dollar matching contribution of up to 6.0% of eligible compensation contributed by the employee each pay period. The Company also maintains a non-qualified savings plan, The Hartford Excess Savings Plan, with the dollar-for-dollar matching contributions of employee compensation in excess of the amount that can be contributed under the tax-qualified Investment and Savings Plan. An employee's eligible compensation includes overtime and bonuses but for the Investment and Savings Plan and Excess Savings Plan combined, is limited to $1 annually. The total cost to The Hartford for these plans was approximately $156 , $134 and $113 for the years ended December 31, 2019 , 2018 and 2017 , respectively. Additionally, The Hartford has established defined contribution pension plans for certain employees of the Company’s international subsidiaries. The cost to The Hartford for the years ended December 31, 2019 , 2018 and 2017 for these plans was immaterial. Post Retirement Benefit Plans Defined Benefit Pension Plan- The Company maintains The Hartford Retirement Plan for U.S. Employees, a U.S. qualified defined benefit pension plan (“Pension Plan”) that covers substantially all U.S. employees hired prior to January 1, 2013. The Company also maintains non-qualified pension plans to provide retirement benefits previously accrued that are in excess of Internal Revenue Code limitations. The Pension Plan includes two benefit formulas, both of which are frozen: a final average pay formula (for which all accruals ceased as of December 31, 2008) and a cash balance formula for which benefit accruals ceased as of December 31, 2012, although interest will continue to accrue to existing cash balance formula account balances. Employees who were participants as of December 31, 2012 continue to earn vesting credit with respect to their frozen accrued benefits if they continue to work. The interest crediting rate on the cash balance plan is the greater of the average annual yield on 10-year U.S. Treasury Securities or 3.3% . The Hartford Excess Pension Plan II, the Company's non-qualified excess pension benefit plan for certain highly compensated employees, is also frozen. Group Retiree Health Plan- The Company provides certain health care and life insurance benefits for eligible retired employees. The Company’s contribution for health care benefits will depend upon the retiree’s date of retirement and years of service. In addition, the plan has a defined dollar cap for certain retirees which limits average Company contributions. The Hartford has prefunded a portion of the health care obligations through a trust fund where such prefunding can be accomplished on a tax effective basis. Beginning January 1, 2017, for retirees 65 and older who were participating in the Retiree PPO Medical Plan, the Company funds the cost of medical and dental health care benefits through contributions to a Health Reimbursement Account and covered individuals can access a variety of insurance plans from a health care exchange. Effective January 1, 2002, Company-subsidized retiree medical, retiree dental and retiree life insurance benefits were eliminated for employees with original hire dates with the Company on or after January 1, 2002. The Company also amended its postretirement medical, dental and life insurance coverage plans to no longer provide subsidized coverage for employees who retired on or after January 1, 2014. Assumptions Pursuant to accounting principles related to the Company’s pension and other postretirement obligations to employees under its various benefit plans, the Company is required to make a significant number of assumptions in order to calculate the related liabilities and expenses each period. The two economic assumptions that have the most impact on pension and other postretirement expense under the defined benefit pension plan and group retiree health plan are the discount rate and the expected long-term rate of return on plan assets. The assumed discount rates and yield curve is based on high-quality fixed income investments consistent with the maturity profile of the expected liability cash flows. Based on all available market and industry information, it was determined that 3.33% and 3.15% were the appropriate discount rates as of December 31, 2019 to calculate the Company’s pension and other postretirement obligations, respectively. The expected long-term rate of return considers the actual compound rates of return earned over various historical time periods. The Company also considers the investment volatility, duration and total returns for various time periods related to the characteristics of the pension obligation, which are influenced by the Company's workforce demographics. In addition, for the pension plan, the Company anticipates an allocation of approximately 60% in fixed income securities and 40% in non fixed income securities (global equities, hedge funds and private market alternatives) to derive an expected long-term rate of return. For the other post-retirement plans, the Company anticipates an allocation of approximately 70% in fixed income securities and 30% in non fixed income securities. Based upon these analyses, management determined the long-term rate of return assumption to be 6.45% and 6.00% for the Company's pension and other postretirement obligations, respectively, for the year ended December 31, 2019 and 6.60% for both pension and other postretirement obligations for the year ended December 31, 2018 . To determine the Company's 2020 expense, the Company has assumed an expected long-term rate of return on plan assets of 6.00% and 5.60% for the Company's pension and other post retirement obligations, respectively. Weighted Average Assumptions Used in Calculating the Benefit Obligations and the Net Amount Recognized Pension Benefits Other Postretirement Benefits For the years ended December 31, 2019 2018 2019 2018 Discount rate 3.33 % 4.35 % 3.15 % 4.23 % Weighted Average Assumptions Used in Calculating the Net Periodic Benefit Cost for Pension Plans For the years ended December 31, 2019 2018 2017 Discount rate 4.35 % 3.73 % 4.22 % Expected long-term rate of return on plan assets 6.45 % 6.60 % 6.60 % Weighted Average Assumptions Used in Calculating the Net Periodic Benefit Cost for Other Postretirement Plans For the years ended December 31, 2019 2018 2017 Discount rate 4.23 % 3.55 % 3.97 % Expected long-term rate of return on plan assets 6.00 % 6.60 % 6.60 % Assumed Health Care Cost Trend Rates For the years ended December 31, 2019 2018 2017 Pre-65 health care cost trend rate 7.00 % 6.50 % 6.75 % Post-65 health care cost trend rate N/A N/A N/A Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.50 % 4.50 % 4.50 % Year that the rate reaches the ultimate trend rate 2033 2028 2028 Obligations and Funded Status The following tables set forth a reconciliation of beginning and ending balances of the benefit obligation and fair value of plan assets, as well as the funded status of the Company's defined benefit pension and postretirement health care and life insurance benefit plans. International plans represent an immaterial percentage of total pension assets, liabilities and expense and, for reporting purposes, are combined with domestic plans. Change in Benefit Obligation Pension Benefits Other Postretirement Benefits For the years ended December 31, 2019 2018 2019 2018 Benefit obligation — beginning of year $ 4,000 $ 4,376 $ 220 $ 256 Service cost 4 4 — — Interest cost 159 142 8 7 Plan participants’ contributions — — 13 11 Actuarial loss (gain) 48 (6 ) 6 — Amendments — — (2 ) — Changes in assumptions 488 (329 ) 19 (11 ) Benefits and expenses paid (201 ) (186 ) (41 ) (45 ) Retiree drug subsidy — — — 2 Foreign exchange adjustment — (1 ) — — Benefit obligation — end of year $ 4,498 $ 4,000 $ 223 $ 220 Changes in assumptions in 2019 primarily included a $508 increase in the benefit obligation for pension benefits as a result of a decrease in the discount rate from 4.35% as of the December 31, 2018 valuation to 3.33% as of the December 31, 2019 valuation. Changes in assumptions in 2018 included a $281 decrease in the benefit obligation for pension benefits as a result of an increase in the discount rate from 3.73% as of the December 31, 2017 valuation to 4.35% as of the December 31, 2018 valuation. The cash balance plan pension benefit obligation was $420 and $412 as of December 31, 2019 and 2018 , respectively. The interest crediting rate was 3.30% in 2019 , 2018 , and 2017 . On June 30, 2017, the Company transferred invested assets and cash from plan assets to purchase a group annuity contract that transferred approximately $ 1.6 billion of the Company's outstanding pension obligations related to certain U.S. retirees, terminated vested participants and beneficiaries. As a result of this transaction, the Company recognized a pre-tax settlement charge of $ 750 . The settlement charge was included in the corporate category for segment reporting. Change in Plan Assets Pension Benefits Other Postretirement Benefits For the years ended December 31, 2019 2018 2019 2018 Fair value of plan assets — beginning of year $ 3,344 $ 3,592 $ 85 $ 114 Actual return on plan assets 701 (172 ) 12 (2 ) Employer contributions [1] 70 103 — — Benefits paid [2] (176 ) (161 ) (22 ) (27 ) Expenses paid (26 ) (17 ) — — Foreign exchange adjustment 1 (1 ) — — Fair value of plan assets — end of year $ 3,914 $ 3,344 $ 75 $ 85 Funded status — end of year $ (584 ) $ (656 ) $ (148 ) $ (135 ) [1] Employer contributions in 2019 and 2018 to the U.S. qualified defined benefit pension plan were discretionary, made in cash, and did not include contributions of the Company’s common stock. [2] Other postretirement benefits paid represent non-key employee postretirement medical benefits paid from the Company's prefunded trust fund. The fair value of assets for pension benefits, and hence the funded status, presented in the table above excludes assets of $161 and $139 as of December 31, 2019 and 2018 , respectively, held in rabbi trusts and designated for the non-qualified pension plans. The assets do not qualify as plan assets; however, the assets are available to pay benefits for certain retired, terminated and active participants. Such assets are available to the Company’s general creditors in the event of insolvency. The rabbi trust assets consist of equity and fixed income investments. To the extent the fair value of these rabbi trusts were included in the table above, pension plan assets would have been $4,075 and $3,483 as of December 31, 2019 and 2018 , respectively, and the funded status of pension benefits would have been $( 423 ) and $(517) as of December 31, 2019 and 2018 , respectively. Defined Benefit Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets As of December 31, 2019 2018 Projected benefit obligation $ 4,498 $ 4,000 Accumulated benefit obligation $ 4,498 $ 4,000 Fair value of plan assets $ 3,914 $ 3,344 Amounts Recognized in the Consolidated Balance Sheets Pension Benefits Other Postretirement Benefits As of December 31, 2019 2018 2019 2018 Other liabilities $ 584 $ 656 $ 148 $ 135 Components of Net Periodic Benefit Cost (Benefit) and Other Amounts Recognized in Other Comprehensive Income (Loss) As a result of the pension settlement, in 2017, the Company recognized a pre-tax settlement charge of $ 750 ($ 488 net of tax) and a reduction to stockholders' equity of $ 144 . In connection with this transaction, the Company made a contribution of $ 280 in September 2017 to the U.S. qualified pension plan in order to maintain the plan's pre-transaction funded status. Beginning with the first quarter of 2017, the Company adopted the full yield curve approach in the estimation of the interest cost component of net periodic benefit costs for its qualified and non-qualified pension plans and the postretirement benefit plan. The full yield curve approach applies the specific spot rates along the yield curve that are used in its determination of the projected benefit obligation at the beginning of the year. The change has been made to provide a better estimate of the interest cost component of net periodic benefit cost by better aligning projected benefit cash flows with corresponding spot rates on the yield curve rather than using a single weighted average discount rate derived from the yield curve as had been done historically. This change does not affect the measurement of the Company's total benefit obligations as the change in the interest cost in net income is completely offset in the actuarial (gain) loss reported for the period in other comprehensive income. The change reduced the before tax interest cost component of net periodic benefit cost by $ 32 for the year ended December 31, 2017. The discount rate being used to measure interest cost was 3.58% for the period from January 1, 2017 to June 30, 2017 and 3.37% for the period from July 1, 2017 to December 31, 2017 for the qualified pension plan, 3.55% for the non-qualified pension plan, and 3.13% for the postretirement benefit plan. Under the Company's historical estimation approach, the weighted average discount rate for the interest cost component would have been 4.22% for the period from January 1, 2017 to June 30, 2017 and 3.92% for the period from July 1, 2017 to December 31, 2017 for the qualified pension plan, 4.19% for the non-qualified pension plan and 3.97% for the postretirement benefit plan. The Company accounted for this change as a change in estimate, and accordingly, has recognized the effect prospectively beginning in 2017. Net Periodic Cost (Benefit) Pension Benefits Other Postretirement Benefits For the years ended December 31, 2019 2018 2017 2019 2018 2017 Service cost $ 4 $ 4 $ 4 $ — $ — $ — Interest cost 159 142 170 8 7 8 Expected return on plan assets (226 ) (227 ) (267 ) (4 ) (7 ) (8 ) Amortization of prior service credit — — — (7 ) (7 ) (7 ) Amortization of actuarial loss 44 49 56 6 6 5 Settlements — — 750 — — — Net periodic cost (benefit) $ (19 ) $ (32 ) $ 713 $ 3 $ (1 ) $ (2 ) Amounts Recognized in Other Comprehensive Income (Loss) Pension Benefits Other Postretirement Benefits For the years ended December 31, 2019 2018 2017 2019 2018 2017 Amortization of actuarial loss $ 44 $ 49 $ 56 $ 6 $ 6 $ 5 Settlement loss — — 750 — — — Amortization of prior service credit — — — (7 ) (6 ) (7 ) Net loss arising during the year (88 ) (91 ) (209 ) (18 ) 3 (12 ) Prior service cost (credit) — — — 2 — — Total $ (44 ) $ (42 ) $ 597 $ (17 ) $ 3 $ (14 ) Amounts in Accumulated Other Comprehensive Income (Loss), Before Tax, not yet Recognized as Components of Net Periodic Benefit Cost Pension Benefits Other Postretirement Benefits As of December 31, 2019 2018 2017 2019 2018 2017 Net loss $ (2,052 ) $ (2,008 ) $ (1,966 ) $ (132 ) $ (120 ) $ (129 ) Prior service credit — — — 67 72 78 Total $ (2,052 ) $ (2,008 ) $ (1,966 ) $ (65 ) $ (48 ) $ (51 ) The pension settlement transaction resulted in a decrease to unrecognized net loss of $ 750 in 2017. Pension Plan Assets Investment Strategy and Target Allocation The overall investment strategy of the Pension Plan is to maximize total investment returns to provide sufficient funding for present and anticipated future benefit obligations within the constraints of a prudent level of portfolio risk and diversification. With respect to asset management, the oversight responsibility of the Pension Plan rests with The Hartford’s Pension Fund Trust and Investment Committee composed of individuals whose responsibilities include establishing overall objectives and the setting of investment policy; selecting appropriate investment options and ranges; reviewing the asset allocation mix and asset allocation targets on a regular basis; and monitoring performance to determine whether or not the rate of return objectives are being met and that policy and guidelines are being followed. The Company believes that the asset allocation decision will be the single most important factor determining the long-term performance of the Pension Plan. Target Asset Allocation Pension Plans Other Postretirement Plans Minimum Maximum Minimum Maximum Equity securities 5 % 35 % 15 % 45 % Fixed income securities 50 % 70 % 55 % 85 % Alternative assets — % 45 % — % — % Divergent market performance among different asset classes may, from time to time, cause the asset allocation to deviate from the desired asset allocation ranges. The asset allocation mix is reviewed on a periodic basis. If it is determined that an asset allocation mix rebalancing is required, future portfolio additions and withdrawals will be used, as necessary, to bring the allocation within tactical ranges. The Pension Plan invests in commingled funds and partnerships managed by unaffiliated managers to gain exposure to emerging markets, equity, hedge funds and other alternative investments. These portfolios encompass multiple asset classes reflecting the current needs of the Pension Plan, the investment preferences and risk tolerance of the Pension Plan and the desired degree of diversification. These asset classes include publicly traded equities, bonds and alternative investments and are made up of individual investments in cash and cash equivalents, equity securities, debt securities, asset-backed securities, mortgage loans and hedge funds. Hedge fund investments represent a diversified portfolio of partnership investments in a variety of strategies. In addition, the Company uses U.S. Treasury bond futures contracts and U.S. Treasury STRIPS in a duration overlay program to adjust the duration of Pension Plan assets to better match the duration of the benefit obligation. Pension Plan Assets at Fair Value As of December 31, 2019 As of December 31, 2018 Asset Category Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Short-term investments: $ 34 $ 54 $ — $ 88 $ 50 $ 60 $ — $ 110 Fixed Income Securities: Corporate — 2,058 27 2,085 — 1,663 14 1,677 RMBS — 61 — 61 — 62 1 63 U.S. Treasuries — 101 — 101 10 120 — 130 Foreign government — 17 1 18 — 15 2 17 CMBS — 32 — 32 — 22 — 22 Other fixed income [1] — 96 1 97 — 52 1 53 Mortgage Loans — — 131 131 — — 133 133 Equity Securities: Domestic 429 1 — 430 376 3 — 379 International 261 — — 261 303 — — 303 Total pension plan assets at fair value, in the fair value hierarchy [2] $ 724 $ 2,420 $ 160 $ 3,304 $ 739 $ 1,997 $ 151 $ 2,887 Other Investments, at net asset value [3]: Private Market Alternatives 358 272 Hedge funds 212 186 Total pension plan assets at fair value. $ 724 $ 2,420 $ 160 $ 3,874 $ 739 $ 1,997 $ 151 $ 3,345 [1] Includes ABS, municipal bonds, and CDOs. [2] Excludes approximately $40 and $1 as of December 31, 2019 and 2018, respectively, of investment receivables net of investment payables that are excluded from this disclosure requirement because they are trade receivables in the ordinary course of business where the carrying amount approximates fair value. [3] Investments that are measured at net asset value per share or an equivalent and have not been classified in the fair value hierarchy. The tables below provide fair value level 3 rollforwards for the Pension Plan Assets for which significant unobservable inputs ("Level 3") are used in the fair value measurement on a recurring basis. The Pension Plan classifies the fair value of financial instruments within Level 3 if there are no observable markets for the instruments or, in the absence of active markets, if one or more of the significant inputs used to determine fair value are based on the Pension Plan’s own assumptions. Therefore, the gains and losses in the tables below include changes in fair value due to both observable and unobservable factors. Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Assets Corporate RMBS Foreign government Mortgage loans Other [1] Totals Fair Value as of January 1, 2019 $ 14 $ 1 $ 2 $ 133 $ 1 $ 151 Realized gains,net 3 — — — — 3 Changes in unrealized gains, net 2 — — 4 — 6 Purchases 7 — — — — 7 Settlements — — — — — — Sales (3 ) (1 ) (1 ) (6 ) — (11 ) Transfers into Level 3 4 — — — — 4 Transfers out of Level 3 — — — — — — Fair Value as of December 31, 2019 $ 27 $ — $ 1 $ 131 $ 1 $ 160 Fair Value as of January 1, 2018 $ 14 $ 2 $ 1 $ 140 $ 4 $ 161 Realized gains,net — — — — — — Changes in unrealized (losses) gains, net (1 ) — — (1 ) — (2 ) Purchases 5 — 1 — — 6 Settlements — — — — — — Sales (4 ) (1 ) — (6 ) (3 ) (14 ) Transfers into Level 3 — — — — — — Transfers out of Level 3 — — — — — — Fair Value as of December 31, 2018 $ 14 $ 1 $ 2 $ 133 $ 1 $ 151 [1] "Other" includes U.S. Treasuries, Other fixed income and CMBS investments. During the year ended December 31, 2019 , transfers into and (out) of Level 3 are primarily attributable to the appearance of or lack thereof of market observable information and the re-evaluation of the observability of pricing inputs. During the year ended December 31, 2018 , transfers in and/or (out) of Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs. There was less than $1 in Company common stock included in the Pension Plan’s assets as of December 31, 2019 and 2018 . Other Postretirement Plan Assets at Fair Value As of December 31, 2019 As of December 31, 2018 Asset Category Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Short-term investments $ 3 $ — $ — $ 3 $ 4 $ — $ — $ 4 Fixed Income Securities: Corporate — 18 — 18 — 19 — 19 RMBS — 12 — 12 — 15 — 15 U.S. Treasuries — 20 — 20 6 13 — 19 Foreign government — — — — — 1 — 1 CMBS — 1 — 1 — 2 — 2 Other fixed income — 2 — 2 — 2 — 2 Equity Securities: Large-cap 19 — 19 23 — — 23 Total other postretirement plan assets at fair value [1] $ 22 $ 53 $ — $ 75 $ 33 $ 52 $ — $ 85 [1] Excludes approximately $1 of investment payables net of investment receivables as of December 31, 2018 that are excluded from this disclosure requirement because they are trade receivables in the ordinary course of business where the carrying amount approximates fair value. For other postretirement plan Level 3 assets, the fair value of corporate securities decreased from $1 as of December 31, 2017 to $0 as of December 31, 2018 due to $1 in sales. There was no Company common stock included in the other postretirement benefit plan assets as of December 31, 2019 and 2018 . Concentration of Risk In order to minimize risk, the Pension Plan maintains a listing of permissible and prohibited investments. In addition, the Pension Plan has certain concentration limits and investment quality requirements imposed on permissible investment options. Permissible investments include U.S. equity, international equity, alternative asset and fixed income investments including derivative instruments. Permissible derivative instruments include futures contracts, options, swaps, currency forwards, caps or floors and may be used to control risk or enhance return but will not be used for leverage purposes. Securities specifically prohibited from purchase include, but are not limited to: shares or fixed income instruments issued by The Hartford, short sales of any type within long-only portfolios, non-derivative securities involving the use of margin, leveraged floaters and inverse floaters, including money market obligations, natural resource real properties such as oil, gas or timber and precious metals. Other than U.S. government and certain U.S. government agencies backed by the full faith and credit of the U.S. government, the Pension Plan does not have any material exposure to any concentration risk of a single issuer. Expected Employer Contributions The Company does not have a 2020 required minimum funding contribution for the U.S. qualified defined benefit pension plan. The Company has not determined whether, and to what extent, contributions may be made to the U. S. qualified defined benefit pension plan in 2020 . The Company will monitor the funded status of the U.S. qualified defined benefit pension plan during 2020 to make this determination. Benefit Payments Amounts of Benefits Expected to be Paid over the next Ten Years from Pension and other Postretirement Plans as of December 31, 2019 Pension Benefits Other Postretirement Benefits 2020 $ 240 $ 25 2021 248 23 2022 254 20 2023 256 18 2024 258 16 2025 - 2029 1,291 63 Total $ 2,547 $ 165 |
Stock Compensation Plans
Stock Compensation Plans | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock Compensation Plans | 19 . STOCK COMPENSATION PLANS The Company's stock-based compensation plans are described below. Shares issued in satisfaction of stock-based compensation may be made available from authorized but unissued shares, shares held by the Company in treasury or from shares purchased in the open market. In 2019 , 2018 and 2017 , the Company issued shares from treasury in satisfaction of stock-based compensation. Stock-based compensation expense, included in insurance operating costs and other expenses in the consolidated statement of operations, was as follows: Stock-Based Compensation Expense For the years ended December 31, 2019 2018 2017 Stock-based compensation plans expense $ 125 $ 130 $ 116 Income tax benefit (21 ) (27 ) (41 ) Excess tax benefit on awards vested, exercised and expired (6 ) (5 ) (15 ) Total stock-based compensation plans expense, net of tax [1] $ 98 $ 98 $ 60 [1] The increase in stock-based compensation plans expense, net of tax in 2018 is primarily related to the reduction of the U.S. federal corporate tax rate from 35% to 21%. The Company did not capitalize any cost of stock-based compensation. As of December 31, 2019 , the total compensation cost related to non-vested awards not yet recognized was $70 , which is expected to be recognized over a weighted average period of 2 years. In the second quarter of 2018, The Hartford modified the terms of the portion of its outstanding 2016 and 2017 performance share awards that are based on actual versus targeted return on equity over the performance period. The modification eliminated the benefit to return on equity that arose from the charge against earnings in 2017 driven by the effect of the lower corporate income tax rate on the carrying value of net deferred tax assets. This modification had no impact on compensation cost recognized over the vesting period since compensation cost based on the original performance share conditions is projected to be higher than what the cost would be based on the performance share conditions as modified. Stock Plan Future stock-based awards may be granted under The Hartford's 2014 Incentive Stock Plan (the "Incentive Stock Plan") other than the Subsidiary Stock Plan and the Employee Stock Purchase Plan described below. The Incentive Stock Plan provides for awards to be granted in the form of non-qualified or incentive stock options qualifying under Section 422 of the Internal Revenue Code, stock appreciation rights, performance shares, restricted stock or restricted stock units, or any other form of stock-based award. The maximum number of shares, subject to adjustments set forth in the Incentive Stock Plan, that may be issued to Company employees and third party service providers during the 10 -year duration of the Incentive Stock Plan is 12,000,000 shares. If any award under an earlier incentive stock plan is forfeited, terminated, surrendered, exchanged, expires unexercised, or is settled in cash in lieu of stock (including to effect tax withholding) or for the net issuance of a lesser number of shares than the number subject to the award, the shares of stock subject to such award (or the relevant portion thereof) shall be available for awards under the Incentive Stock Plan and such shares shall be added to the maximum limit. As of December 31, 2019 , there were 5,268,108 shares available for future issuance. The fair values of awards granted under the Incentive Stock Plan are measured as of the grant date and expensed ratably over the awards’ vesting periods, generally 3 years . For stock option awards to retirement-eligible employees the Company recognizes the expense over a period shorter than the stated vesting period because the employees receive accelerated vesting upon retirement and therefore the vesting period is considered non-substantive. Beginning with awards granted in 2017, employees with restricted stock units and performance shares receive accelerated vesting upon meeting certain retirement eligibility criteria. Stock Option Awards Under the Incentive Stock Plan, options granted have an exercise price at least equal to the market price of the Company’s common stock on the date of grant, and an option’s maximum term is not to exceed 10 years . Options generally become exercisable over a period of three years commencing one year from the date of grant. Certain other options become exercisable at the later of three years from the date of grant or upon specified market appreciation of the Company's common shares. The Company uses a hybrid lattice/Monte-Carlo based option valuation model (the “Plan Valuation Model”) that incorporates the possibility of early exercise of options into the valuation. The Plan Valuation Model also incorporates the Company’s historical termination and exercise experience to determine the option value. The Plan Valuation Model incorporates ranges of assumptions for inputs, and those ranges are disclosed below. The term structure of volatility is generally constructed utilizing implied volatilities from exchange-traded options, CPP warrants related to the Company’s stock, historical volatility of the Company’s stock and other factors. The Company uses historical data to estimate option exercise and employee termination within the Plan Valuation Model, and accommodates variations in employee preference and risk-tolerance by segregating the grantee pool into a series of behavioral cohorts and conducting a fair valuation for each cohort individually. The expected term of options granted is derived from the output of the option Plan Valuation Model and represents, in a mathematical sense, the period of time that options are expected to be outstanding. The risk-free rate for periods within the contractual life of the option is based on the U.S. Constant Maturity Treasury yield curve in effect at the time of grant. Stock Options Valuation Assumptions For the years ended December 31, 2019 2018 2017 Expected dividend yield 2.5% 1.8% 1.9% Expected annualized spot volatility 20.7 % - 36.7% 20.8 % - 36.5% 21.8 % - 37.9% Weighted average annualized volatility 29.3% 29.0% 29.5% Risk-free spot rate 2.4 % - 2.6% 1.5 % - 2.9% 0.4 % - 2.4% Expected term 5.9 years 5.7 years 5.0 years Non-qualified Stock Option Activity Under the Incentive Stock Plan Number of Options (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value For the year ended December 31, 2019 Outstanding at beginning of year 5,490 $ 40.84 Granted 1,089 $ 49.01 Exercised (733 ) $ 32.29 Forfeited — $ — Expired — $ — Outstanding at end of year 5,846 $ 43.43 6.3 years $ 101 Outstanding, fully vested and expected to vest 5,836 $ 64.77 6.3 years $ 98 Exercisable at end of year 3,921 $ 40.00 5.2 years $ 81 Aggregate intrinsic value represents the value of the Company's closing stock price on the last trading day of the period in excess of the exercise price multiplied by the number of options outstanding or exercisable. The aggregate intrinsic value excludes the effect of stock options that have a zero or negative intrinsic value. The weighted average grant-date fair value per share of options granted during the years ended December 31, 2019 , 2018 , and 2017 was $11.71 , $14.04 and $12.38 , respectively. The total intrinsic value of options exercised during the years ended December 31, 2019 , 2018 and 2017 was $16 , $14 , and $8 , respectively. Share Awards Share awards granted under the Incentive Stock Plan and outstanding include restricted stock units and performance shares. Restricted Stock and Restricted Stock Units Restricted stock units are share equivalents that are credited with dividend equivalents. Dividend equivalents are accumulated and paid in incremental shares when the underlying units vest. Restricted stock are shares of The Hartford's common stock with restrictions as to transferability until vested. Restricted stock units and restricted stock awards are valued equal to the market price of the Company’s common stock on the date of grant. Generally, restricted stock units vest at the end of or over three years ; certain restricted stock units vest at the end of five years . Beginning in 2017, restricted stock units vest at the earlier of an employee's retirement eligibility date or three years . Equity awards granted to non-employee directors generally vest in one year and were made in the form of restricted stock units in 2019, 2018 and 2017. Performance Shares Performance shares become payable within a range of 0% to 200% of the number of shares initially granted based upon the attainment of specific performance goals achieved at the end of or over three years . While most performance shares vest at the end of or over three years , certain performance shares vest at the end of five years . Beginning in 2017, performance shares vest at the earlier of an employee's retirement eligibility date or three years. Performance share awards that are not dependent on market conditions are valued equal to the market price of the Company's common stock on the date of grant less a discount for the absence of dividends. Stock-compensation expense for these performance share awards without market conditions is based on a current estimate of the number of awards expected to vest based on the performance level achieved and, therefore, may change during the performance period as new estimates of performance are available. Other performance share awards or portions thereof have a market condition based upon the Company's total stockholder return relative to a group of peer companies within a period of three years from the date of grant. Stock compensation expense for these performance share awards is based on the number of awards expected to vest as estimated at the grant date and, therefore, does not change for changes in estimated performance. The Company uses a risk neutral Monte-Carlo Plan Valuation Model that incorporates time to maturity, implied volatilities of the Company and the peer companies, and correlations between the Company and the peer companies and interest rates. Assumptions for Total Shareholder Return Performance Shares For the years ended December 31, 2019 2018 2017 Volatility of common stock 19.4% 20.8% 20.3% Average volatility of peer companies 16.0 % - 27.0% 17.0 % - 25.0% 15.0 % - 25.0% Average correlation coefficient of peer companies 50.0% 54.0% 60.0% Risk-free spot rate 2.4% 2.4% 1.5% Term 3.0 years 3.0 years 3.0 years Total Share Awards Non-vested Share Award Activity Under the Incentive Stock Plan Restricted Stock and Restricted Stock Units Performance Shares Number of Shares (in thousands) Weighted-Average Grant-Date Fair Value Number of Shares (in thousands) Weighted-Average Grant date Fair Value Non-vested shares For the year ended December 31, 2019 Non-vested at beginning of year 3,446 $ 48.43 735 $ 49.56 Granted 1,702 $ 50.49 422 $ 54.07 Performance based adjustment 391 $ 48.89 Vested (1,105 ) $ 42.73 (739 ) $ 48.89 Forfeited (435 ) $ 51.02 (49 ) $ 50.12 Non-vested at end of year 3,608 $ 50.85 760 $ 52.34 The weighted average grant-date fair value per share of restricted stock units and restricted stock granted during the years ended December 31, 2019 , 2018 , and 2017 was $50.49 , $53.11 and $48.90 , respectively. The weighted average grant-date fair value per share of performance shares granted during the years ended December 31, 2019 , 2018 , and 2017 was $54.07 , $50.26 and $48.89 , respectively. The total fair value of shares vested during the years ended December 31, 2019 , 2018 and 2017 was $102 , $114 and $94 , respectively, based on actual or estimated performance factors. The Company did not make cash payments in settlement of stock compensation during the years ended December 31, 2019 , 2018 and 2017 . Subsidiary Stock Plan In 2013 the Company established a subsidiary stock-based compensation plan similar to The Hartford Incentive Stock Plan except that it awards non-public subsidiary stock as compensation. The Company recognized stock-based compensation plan expense of $11 , $9 and $9 in the years ended December 31, 2019 , 2018 and 2017 , respectively, for the subsidiary stock plan. Upon employee vesting of subsidiary stock, the Company recognizes a noncontrolling equity interest. Employees are restricted from selling vested subsidiary stock to anyone other than the Company and the Company has discretion on the amount of stock to repurchase. Therefore, the subsidiary stock is classified as equity because it is not mandatorily redeemable. For the year ended December 31, 2019 , the Company repurchased $8 in subsidiary stock. Employee Stock Purchase Plan The Company sponsors The Hartford Employee Stock Purchase Plan (“ESPP”). Under this plan, eligible employees of The Hartford purchase common stock of the Company at a discount rate of 5% of the market price per share on the last trading day of the offering period. Accordingly, the plan is a non-compensatory plan. Employees purchase a variable number of shares of stock through payroll deductions elected as of the beginning of the offering period. The Company may sell up to 15,400,000 shares of stock to eligible employees under the ESPP. As of December 31, 2019 , there were 4,084,500 shares available for future issuance. During the years ended December 31, 2019 , 2018 and 2017 , 213,472 shares, 219,661 shares, and 204,533 shares were sold, respectively. The weighted average per share fair value of the discount under the ESPP was $2.82 , $ 2.56 and $ 2.63 during the years ended December 31, 2019 , 2018 and 2017 , respectively. The fair value is estimated based on the 5% discount off the market price per share on the last trading day of the offering period. |
Leases Leases
Leases Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | 20 . LEASES The Hartford has operating leases for real estate and equipment. The right-of-use asset as of December 31, 2019 was $ 191 and is included in property and equipment, net, in the Consolidated Balance Sheet. The lease liability as of December 31, 2019 was $ 201 and is included in other liabilities in the Consolidated Balance Sheet. Variable lease costs include changes in interest rates on variable rate leases primarily for automobiles. Components of Lease Expense Year Ended December 31, 2019 Operating lease cost $ 49 Short-term lease cost 2 Variable lease cost 1 Sublease income (5 ) Total lease costs included in insurance operating costs and other expenses $ 47 The total rental expense recognized in accordance with prior lease guidance was $56 and $57 in 2018 and 2017 , respectively, which excludes sublease rental income of $4 and $3 in 2018 and 2017 , respectively. Supplemental Operating Lease Information December 31, 2019 Operating cash flows for operating leases (for the twelve months ended) $ 50 Right-of-use asset obtained in exchange for new operating lease liabilities 42 Weighted-average remaining lease term in years for operating leases 6 years Weighted-average discount rate for operating leases 3.5 % Maturities of Operating Lease Liabilities as of December 31, 2019 Operating Leases 2020 $ 51 2021 40 2022 34 2023 31 2024 21 Thereafter 46 Total lease payments 223 Less: Discount on lease payments to present value 22 Total lease liability $ 201 During 2019, The Hartford entered into 5, 10, and 12 year operating leases for office space, which will result in additional right-of-use asset and lease liabilities of approximately $54 . These leases commence in the first half of 2020. Future Minimum Lease Commitments as of December 31, 2018 Operating Leases 2019 $ 44 2020 36 2021 25 2022 18 2023 16 Thereafter 34 Total minimum lease payments [1] $ 173 [1] Excludes expected future minimum sublease income of approximately $2 , $1 , $1 , $0 , $0 and $0 in 2019, 2020, 2021, 2022, 2023 and thereafter respectively. The Company’s lease commitments consist primarily of lease agreements for office space, automobiles, and office equipment that expire at various dates. |
Business Dispositions and Disco
Business Dispositions and Discontinued Operations | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Business Dispositions and Discontinued Operations | 21 . BUSINESS DISPOSITIONS AND DISCONTINUED OPERATIONS Sale of U.K. business On May 10, 2017, the Company completed the sale of its U.K. property and casualty run-off subsidiaries, Hartford Financial Products International Limited and Downlands Liability Management Limited, in a cash transaction to Catalina Holdings U.K. Limited, for approximately $ 272 , net of transaction costs. The Company's U.K. property and casualty run-off subsidiaries are included in the P&C Other Operations reporting segment. Revenues and earnings are not material to the Company's consolidated results of operations for the year ended December 31, 2017. Major Classes of Assets and Liabilities Transferred by the Company to the Buyer in Connection with the Sale Carrying Value as of Closing Assets Cash and investments $ 669 Reinsurance recoverables and other 268 Total assets held for sale 937 Liabilities Reserve for future policy benefits and unpaid loss and loss adjustment expenses 653 Other liabilities 12 Total liabilities held for sale $ 665 Sale of life and annuity business On May 31, 2018, the Company’s wholly-owned subsidiary, Hartford Holdings, Inc, completed the sale of its life and annuity business to a group of investors led by Cornell Capital LLC, Atlas Merchant Capital LLC, TRB Advisors LP, Global Atlantic Financial Group, Pine Brook and J. Safra Group. Under the terms of the sale agreement signed December 3, 2017, the investor group formed a limited partnership, Hopmeadow Holdings LP, that acquired HLI, and its life and annuity operating subsidiaries, for cash of approximately $ 1.4 billion after a pre-closing dividend to The Hartford of $ 300 . The Hartford received a 9.7 % ownership interest in the limited partnership, valued at a cost of $ 164 as of the sale date. In addition, as part of the terms of the sale agreement, The Hartford reduced its long-term debt by $ 142 because the debt, which was issued by HLI, was included as part of the sale. Including cash proceeds and the retained equity interest and net of transaction costs, net proceeds for the sale were approximately $ 1.5 billion. The life and annuity operations met the criteria for reporting as discontinued operations and are reported in the Corporate category through the date of sale. The Company recognized a loss on sale within discontinued operations of approximately $ 3.3 billion in 2017 and a reduction in loss on sale of $ 202 in 2018. The reduction in loss on sale in 2018 primarily resulted from the reclassification to retained earnings of $ 193 of tax effects stranded in AOCI due to the accounting for Tax Reform and a $ 141 increase in estimated retained tax benefits, primarily net operating loss carryovers, partially offset by $ 104 of operating income from discontinued operations during the period up until the closing date and a reclassification of $ 10 of net unrealized capital gains from AOCI to retained earnings. See Note 1 - Adoption of New Accounting Standards within Basis of Presentation and Significant Accounting Policies , for additional information about the reclassifications from AOCI to retained earnings. The estimated amount of retained net operating loss carryovers depends on the estimated tax basis of the business sold which increased subsequent to the date the Company entered into the sale agreement. At closing, stockholders’ equity was further reduced for the amount of AOCI of the life and annuity business, which was approximately $ 758 , largely consisting of net unrealized gains on investments, net of shadow DAC. The AOCI balance was $ 1 billion as of December 31, 2017. Cash inflows and outflows from and to the life and annuity business after closing were immaterial to the overall inflows and outflows of the Company. Additionally, the revenues and expenses presented in continuing operations related to pre-disposal operations were immaterial. The Company will continue to manage invested assets of the life and annuity business sold in May 2018 for an initial term of five years and provide transition services for up to 24 months . The Hartford reported its 9.7% ownership interest in Hopmeadow Holdings LP, which is accounted for under the equity method, in other assets in the Consolidated Balance Sheet. The Hartford recognizes its share of income in other revenues in the Consolidated Statement of Operations on a three month delay, when financial information from the investee becomes available. The Company recognized $66 , before tax, of income in 2019. Cash inflows for dividends received from Hopmeadow Holdings LP were $67 in 2019. Other cash inflows and outflows from and to the life and annuity business after closing were immaterial to the overall inflows and outflows of the Company. Major Classes of Assets and Liabilities Transferred to the Buyer in Connection with the Sale Carrying Value as of Closing December 31, 2017 [2] Assets Cash and investments $ 27,058 $ 30,135 Reinsurance recoverables 20,718 20,785 Loss accrual [1] (3,044 ) (3,257 ) Other assets 2,907 1,439 Separate account assets 110,773 115,834 Total assets held for sale $ 158,412 $ 164,936 Liabilities Reserve for future policy benefits and unpaid loss and loss adjustment expenses $ 14,308 $ 14,482 Other policyholder funds and benefits payable 28,680 29,228 Long-term debt 142 142 Other liabilities 2,222 2,756 Separate account liabilities 110,773 115,834 Total liabilities held for sale $ 156,125 $ 162,442 [1] Represents the estimated accrued loss on sale of the Company's life and annuity business. [2] Classified as assets and liabilities held for sale. Reconciliation of the Major Line Items Constituting Pretax Profit (Loss) of Discontinued Operations For the years ended December 31, 2018 2017 Revenues Earned premiums $ 39 $ 106 Fee income and other 382 912 Net investment income 519 1,289 Net realized capital losses (68 ) (53 ) Total revenues 872 2,254 Benefits, losses and expenses Benefits, losses and loss adjustment expenses 535 1,416 Amortization of DAC 58 45 Insurance operating costs and other expenses [1] 157 368 Total benefits, losses and expenses 750 1,829 Income before income taxes 122 425 Income tax expense 2 37 Income from operations of discontinued operations, net of tax 120 388 Net realized capital gain (loss) on disposal, net of tax 202 (3,257 ) Income (loss) from discontinued operations, net of tax $ 322 $ (2,869 ) [1]Corporate allocated overhead has been included in continuing operations. Cash Flows from Discontinued Operations included in the Consolidated Statement of Cash Flows Year Ended December 31, 2018 2017 Net cash provided by operating activities from discontinued operations $ 603 $ 797 Net cash provided by investing activities from discontinued operations $ 463 $ 1,466 Net cash used in financing activities from discontinued operations [1] $ (737 ) $ (884 ) Cash paid for interest $ — $ 11 [1] Excludes return of capital to parent of $619 and $1,396 for 2018 and 2017 |
Quarterly Results (Unaudited)
Quarterly Results (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results (Unaudited) | 22 . QUARTERLY RESULTS (UNAUDITED) Current and Historical Quarterly Results of the Company Three months ended March 31, June 30, September 30, December 31, 2019 2018 2019 2018 2019 2018 2019 2018 Revenues $ 4,940 $ 4,691 $ 5,092 $ 4,789 $ 5,347 $ 4,842 $ 5,361 $ 4,633 Benefits, losses and expenses 4,165 4,172 4,636 4,252 4,694 4,312 4,685 4,466 Income from continuing operations, net of tax 630 428 372 434 535 427 548 196 Income from discontinued operations, net of tax — 169 — 148 — 5 — — Net income $ 630 $ 597 $ 372 $ 582 $ 535 $ 432 $ 548 $ 196 Less: Preferred stock dividends 5 — — — 11 — 5 6 Net income available to common stockholders $ 625 $ 597 $ 372 $ 582 $ 524 $ 432 $ 543 $ 190 Basic Income from continuing operations, net of tax, available to common stockholders per share [1] $ 1.74 $ 1.20 $ 1.03 $ 1.21 $ 1.45 $ 1.19 $ 1.51 $ 0.53 Income from discontinued operations, net of tax per share $ — $ 0.47 $ — $ 0.41 $ — $ 0.01 $ — $ — Net income per common share available to common stockholders $ 1.74 $ 1.67 $ 1.03 $ 1.62 $ 1.45 $ 1.20 $ 1.51 $ 0.53 Diluted Income from continuing operations, net of tax available to common stockholders per share [1] $ 1.71 $ 1.18 $ 1.02 $ 1.19 $ 1.43 $ 1.17 $ 1.49 $ 0.52 Income from discontinued operations, net of tax per share $ — $ 0.46 $ — $ 0.41 $ — $ 0.02 $ — $ — Net income per common share available to common stockholders $ 1.71 $ 1.64 $ 1.02 $ 1.60 $ 1.43 $ 1.19 $ 1.49 $ 0.52 [1] Income from continuing operations, net of tax, available to common stockholders includes the impact of preferred stock dividends. |
Schedule I Summary of Investmen
Schedule I Summary of Investments - Other Than Investments in Affiliates | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Summary of Investments - Other Than Investments in Affiliates | THE HARTFORD FINANCIAL SERVICES GROUP, INC. SCHEDULE I SUMMARY OF INVESTMENTS — OTHER THAN INVESTMENTS IN AFFILIATES (in millions) As of December 31, 2019 Type of Investment Cost Fair Value Amount at Fixed Maturities Bonds and notes U.S. government and government agencies and authorities (guaranteed and sponsored) $ 5,478 $ 5,644 $ 5,644 States, municipalities and political subdivisions 8,763 9,498 9,498 Foreign governments 1,057 1,123 1,123 Public utilities 2,019 2,147 2,147 All other corporate bonds 14,416 15,249 15,249 All other mortgage-backed and asset-backed securities 8,345 8,487 8,487 Total fixed maturities, available-for-sale 40,078 42,148 42,148 Fixed maturities, at fair value using fair value option 11 11 11 Total fixed maturities 40,089 42,159 42,159 Equity Securities Common stocks Industrial, miscellaneous and all other 1,471 1,471 1,471 Non-redeemable preferred stocks 186 186 186 Total equity securities, at fair value 1,657 1,657 1,657 Mortgage loans 4,215 4,350 4,215 Futures, options and miscellaneous 376 320 320 Short-term investments 2,917 2,921 2,921 Investments in partnerships and trusts 1,758 1,758 Total investments $ 51,012 $ 53,030 |
Schedule II Condensed Financial
Schedule II Condensed Financial Information of the Hartford Financial Services, Inc. | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule II Condensed Financial Information of the Hartford Financial Services, Inc. | THE HARTFORD FINANCIAL SERVICES GROUP, INC. SCHEDULE II CONDENSED FINANCIAL INFORMATION OF THE HARTFORD FINANCIAL SERVICES GROUP, INC. (Registrant) (in millions) As of December 31, Condensed Balance Sheets 2019 2018 Assets Fixed maturities, available-for-sale, at fair value $ 294 $ 785 Equity securities, at fair value 31 30 Other investments 159 103 Short-term investments 874 2,603 Cash — 3 Investment in affiliates 21,243 15,074 Deferred income taxes 561 992 Unamortized issue costs 2 3 Other assets 71 78 Total assets $ 23,235 $ 19,671 Liabilities and Stockholders’ Equity Net payable to affiliates $ 1,602 $ 1,530 Short-term debt (includes current maturities of long-term debt) 500 413 Long-term debt 4,348 4,265 Other liabilities 515 362 Total liabilities 6,965 6,570 Total stockholders’ equity 16,270 13,101 Total liabilities and stockholders’ equity $ 23,235 $ 19,671 THE HARTFORD FINANCIAL SERVICES GROUP, INC. SCHEDULE II CONDENSED FINANCIAL INFORMATION OF THE HARTFORD FINANCIAL SERVICES GROUP, INC. (continued) (Registrant) (In millions) For the years ended December 31, Condensed Statements of Operations and Comprehensive Income 2019 2018 2017 Net investment income $ 50 $ 41 $ 15 Net realized capital gains (losses) 3 37 (1 ) Total revenues 53 78 14 Interest expense 255 298 316 Loss on extinguishment of debt 68 6 — Pension settlement — — 750 Other expense (income) 15 (6 ) 1 Total expenses 338 298 1,067 Loss before income taxes and earnings of subsidiaries (285 ) (220 ) (1,053 ) Income tax expense (benefit) (60 ) (630 ) 106 Income (loss) before earnings of subsidiaries (225 ) 410 (1,159 ) Earnings (losses) of subsidiaries [1] 2,310 1,397 (1,972 ) Net income (loss) 2,085 1,807 (3,131 ) Other comprehensive income (loss) - parent company: Change in net gain or loss on cash-flow hedging instruments (24 ) 8 2 Change in net unrealized gain or loss on securities 5 (271 ) 280 Change in pension and other postretirement plan adjustments (35 ) (26 ) 107 Other comprehensive income (loss), net of taxes before other comprehensive income of subsidiaries (54 ) (289 ) 389 Other comprehensive income (loss) of subsidiaries 1,685 (1,948 ) 611 Total other comprehensive income (loss) 1,631 (2,237 ) 1,000 Total comprehensive income (loss) $ 3,716 $ (430 ) $ (2,131 ) [1]2017 includes amounts for the life and annuity business accounted for as held for sale and operating results for that business included in discontinued operations in the Consolidated Financial Statements. See Note 21 – Business Dispositions and Discontinued Operations of Notes to Consolidated Financial Statements. THE HARTFORD FINANCIAL SERVICES GROUP, INC. SCHEDULE II CONDENSED FINANCIAL INFORMATION OF THE HARTFORD FINANCIAL SERVICES GROUP, INC. (continued) (Registrant) (In millions) For the years ended December 31, Condensed Statements of Cash Flows 2019 2018 2017 Operating Activities Net income (loss) $ 2,085 $ 1,807 $ (3,131 ) Loss on extinguishment of debt 68 6 — Dividends received from subsidiaries 18 3,115 2,142 Equity in net loss (income) of subsidiaries (2,310 ) (1,397 ) 1,972 Net realized capital losses (gains) 3 (37 ) 2 Change in operating assets and liabilities 640 (716 ) 1,076 Cash provided by operating activities 504 2,778 2,061 Investing Activities Net proceeds from (payments for) short-term investments 1,731 (2,161 ) (121 ) Proceeds from the sale/maturity/prepayment of: Fixed maturities, available-for-sale 478 — — Net proceeds from (payments for) derivatives (33 ) — — Net additions to property and equipment — (69 ) — Amount paid for business acquired (2,098 ) — — Capital contributions to subsidiaries (20 ) (148 ) (633 ) Cash provided by (used for) investing activities 58 (2,378 ) (754 ) Financing Activities Proceeds from issuance of debt 1,376 490 500 Repayments of debt (1,278 ) (826 ) (416 ) Preferred stock issued, net of issuance costs — 334 — Treasury stock acquired (200 ) — (1,028 ) Net issuance (return of) shares under incentive and stock compensation plans (6 ) (18 ) (20 ) Dividends paid on common shares (436 ) (379 ) (341 ) Dividends paid on preferred shares (21 ) — — Cash used for financing activities (565 ) (399 ) (1,305 ) Net increase (decrease) in cash (3 ) 1 2 Cash — beginning of period 3 2 — Cash — end of period $ — $ 3 $ 2 Supplemental Disclosure of Cash Flow Information Interest Paid $ 255 $ 290 $ 312 |
Schedule III Supplementary Insu
Schedule III Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
Schedule III Supplementary Insurance Information | THE HARTFORD FINANCIAL SERVICES GROUP, INC. SCHEDULE III SUPPLEMENTARY INSURANCE INFORMATION (in millions) Segment Deferred Policy Acquisition Costs Unpaid Losses and Loss Adjustment Expenses Reserve for Future Policy Benefits Unearned Premiums Other Policyholder Funds and Benefits Payable As of December 31, 2019 Commercial Lines $ 615 $ 23,363 $ — $ 5,015 $ — Personal Lines 111 2,201 — 1,578 — Property & Casualty Other Operations — 2,697 — 3 — Group Benefits 51 8,256 411 39 459 Hartford Funds 8 — — — — Corporate — — 224 — 296 Consolidated $ 785 $ 36,517 $ 635 $ 6,635 $ 755 As of December 31, 2018 Commercial Lines $ 495 $ 19,455 $ — $ 3,589 $ — Personal Lines 117 2,456 — 1,643 — Property & Casualty Other Operations — 2,673 — 7 — Group Benefits 52 8,445 427 43 455 Hartford Funds 6 — — — — Corporate — — 215 — 312 Consolidated $ 670 $ 33,029 $ 642 $ 5,282 $ 767 THE HARTFORD FINANCIAL SERVICES GROUP, INC. SCHEDULE III SUPPLEMENTARY INSURANCE INFORMATION (In millions) Segment Earned Premiums, Fee Income and Other Net Investment Income Benefits, Losses and Loss Adjustment Expenses Amortization of Deferred Policy Acquisition Costs [1] Insurance Operating Costs and Other Expenses [2] Net Written Premiums [3] For the year December 31, 2019 Commercial Lines $ 8,326 $ 1,129 $ 5,192 $ 1,296 $ 1,776 $ 8,452 Personal Lines 3,318 179 2,185 259 702 3,131 Property & Casualty Other Operations 2 84 21 — 12 — Group Benefits 5,603 486 4,055 54 1,352 — Hartford Funds 999 7 — 12 813 — Corporate 146 66 19 1 431 12 Consolidated $ 18,394 $ 1,951 $ 11,472 $ 1,622 $ 5,086 $ 11,595 For the year December 31, 2018 Commercial Lines $ 7,081 $ 997 $ 4,112 $ 1,048 $ 1,396 $ 7,136 Personal Lines 3,523 155 2,763 275 684 3,276 Property & Casualty Other Operations — 90 65 — 13 (4 ) Group Benefits 5,598 474 4,214 45 1,342 — Hartford Funds 1,032 5 — 16 831 — Corporate 53 59 11 — 387 — Consolidated $ 17,287 $ 1,780 $ 11,165 $ 1,384 $ 4,653 $ 10,408 For the year December 31, 2017 Commercial Lines $ 6,902 $ 949 $ 4,322 $ 1,009 $ 1,381 $ 6,956 Personal Lines 3,819 141 3,000 309 649 3,561 Property & Casualty Other Operations — 106 18 — 9 — Group Benefits 3,677 381 2,803 33 924 — Hartford Funds 992 3 — 21 805 — Corporate 4 23 31 — 1,125 — Consolidated $ 15,394 $ 1,603 $ 10,174 $ 1,372 $ 4,893 $ 10,517 [1] For the year ended December 31, 2019, the amortization of the value of in-force contracts acquired from the Navigators Group acquisition is recorded as DAC amortization. [2] Includes interest expense, loss on extinguishment of debt, restructuring and other costs, loss on reinsurance transaction and amortization of intangible assets. [3]Excludes life insurance pursuant to Regulation S-X. |
Schedule IV Reinsurance
Schedule IV Reinsurance | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Schedule IV Reinsurance | THE HARTFORD FINANCIAL SERVICES GROUP, INC. SCHEDULE IV REINSURANCE (in millions) Gross Amount Ceded Amount Assumed From Other Companies Net Amount Percentage of Amount Assumed to Net For the year ended December 31, 2019 Life insurance in-force $ 879,496 $ 18,483 $ 254,739 $ 1,115,752 23 % Insurance revenues Property and casualty insurance $ 12,010 $ 936 $ 416 $ 11,490 4 % Life insurance and annuities 1,739 25 807 2,521 32 % Accident and health insurance 2,383 66 765 3,082 25 % Total insurance revenues $ 16,132 $ 1,027 $ 1,988 $ 17,093 12 % For the year ended December 31, 2018 Life insurance in-force $ 722,048 $ 16,674 $ 442,817 $ 1,148,191 39 % Insurance revenues Property and casualty insurance $ 10,824 $ 599 $ 221 $ 10,446 2 % Life insurance and annuities 1,551 22 1,082 2,611 41 % Accident and health insurance 2,064 39 962 2,987 32 % Total insurance revenues $ 14,439 $ 660 $ 2,265 $ 16,044 14 % For the year ended December 31, 2017 Life insurance in-force $ 700,860 $ 9,493 $ 301,573 $ 992,940 30 % Insurance revenues Property and casualty insurance $ 10,923 $ 600 $ 232 $ 10,555 2 % Life insurance and annuities 1,526 14 232 1,744 13 % Accident and health insurance 1,755 36 214 1,933 11 % Total insurance revenues $ 14,204 $ 650 $ 678 $ 14,232 5 % |
Schedule V Valuation and Qualif
Schedule V Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule V Valuation and Qualifying Accounts | THE HARTFORD FINANCIAL SERVICES GROUP, INC. SCHEDULE V VALUATION AND QUALIFYING ACCOUNTS (in millions) Balance January 1, Increase (decrease) in Costs and Expenses Write-offs/ Payments/ Other Balance December 31, 2019 Allowance for doubtful accounts and other $ 135 $ 42 $ (32 ) $ 145 Allowance for uncollectible reinsurance 126 2 (14 ) 114 Valuation allowance on mortgage loans 1 (1 ) — — Valuation allowance for deferred taxes — — 4 4 2018 Allowance for doubtful accounts and other $ 132 $ 40 $ (37 ) $ 135 Allowance for uncollectible reinsurance 104 3 19 126 Valuation allowance on mortgage loans 1 — — 1 Valuation allowance for deferred taxes — — — — 2017 Allowance for doubtful accounts and other $ 137 $ 42 $ (47 ) $ 132 Allowance for uncollectible reinsurance 165 4 (65 ) 104 Valuation allowance on mortgage loans — 1 — 1 Valuation allowance for deferred taxes — — — — |
Schedule VI Supplementary Infor
Schedule VI Supplementary Information Concerning Property and Casualty Insurance Operations | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Abstract] | |
Schedule VI Supplementary Information Concerning Property and Casualty Insurance Operations | THE HARTFORD FINANCIAL SERVICES GROUP, INC. SCHEDULE VI SUPPLEMENTAL INFORMATION CONCERNING PROPERTY AND CASUALTY INSURANCE OPERATIONS (in millions) Discount Deducted From Liabilities [1] Losses and Loss Adjustment Expenses Incurred Related to: Paid Losses and Loss Adjustment Expenses Current Year Prior Year Years ended December 31, 2019 $ 388 $ 7,463 $ (65 ) $ (6,748 ) 2018 $ 388 $ 7,107 $ (167 ) $ (6,406 ) 2017 $ 410 $ 7,381 $ (41 ) $ (6,579 ) [1] Indemnity reserves for a portion of workers’ compensation claims that have a fixed and determinable payment stream have been discounted using the weighted average interest rates of 2.91% , 2.98% , and 3.06% for the years ended December 31, 2019 , 2018 , and 2017 , respectively. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) which differ materially from the accounting practices prescribed by various insurance regulatory authorities. |
Consolidation | Consolidation The Consolidated Financial Statements include the accounts of The Hartford Financial Services Group, Inc., and entities in which the Company directly or indirectly has a controlling financial interest. Entities in which the Company has significant influence over the operating and financing decisions but does not control are reported using the equity method. All intercompany transactions and balances between The Hartford and its subsidiaries and affiliates that are not held for sale have been eliminated. |
Discontinued Operations | Discontinued Operations The results of operations of a component of the Company are reported in discontinued operations when certain criteria are met as of the date of disposal, or earlier if classified as held-for-sale. When a component is identified for discontinued operations reporting, amounts for prior periods are retrospectively reclassified as discontinued operations. Components are identified as discontinued operations if they are a major part of an entity's operations and financial results such as a separate major line of business or a separate major geographical area of operations. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates include those used in determining property and casualty and group long-term disability insurance product reserves, net of reinsurance; evaluation of goodwill for impairment; valuation of investments and derivative instruments; valuation allowance on deferred tax assets; and contingencies relating to corporate litigation and regulatory matters. |
Reclassifications | Reclassifications Certain reclassifications have been made to prior year financial information to conform to the current year presentation. In particular, the restricted cash has been reclassified out of cash to a separate line on the Consolidated Balance Sheet. |
Adoption of New Accounting Standards | Adoption of New Accounting Standards Reclassification of Effect of Tax Rate Change from AOCI to Retained Earnings On January 1, 2018, the Company adopted the Financial Accounting Standards Board's ("FASB") new guidance for the effect on deferred tax assets and liabilities related to items recorded in accumulated other comprehensive income ("AOCI") resulting from the Tax Cuts and Jobs Act of 2017 ("Tax Reform") enacted on December 22, 2017. Tax Reform reduced the federal tax rate applied to the Company’s deferred tax balances from 35% to 21% on enactment. Under U.S. GAAP, the Company recorded the total effect of the change in enacted tax rates on deferred tax balances as a charge to income tax expense within net income during the fourth quarter of 2017, including the change in deferred tax balances related to components of AOCI. The new accounting guidance permitted the Company to reclassify the “stranded” tax effects out of AOCI and into retained earnings that resulted from recording the tax effects of unrealized investment gains, unrecognized actuarial losses on pension and other postretirement benefit plans, and cumulative translation adjustments at a 35% tax rate because the 14 point reduction in tax rate was recognized in net income instead of other comprehensive income. On adoption, the Company recorded a reclassification of $88 from AOCI to retained earnings. As a result of the reclassification, in the first quarter of 2018, the Company reduced the estimated loss on sale recorded in income from discontinued operations by $193 , net of tax, for the increase in AOCI related to the assets held for sale. The reduction in the loss on sale resulted in a corresponding increase in assets held for sale and AOCI as of January 1, 2018 and the AOCI associated with assets held for sale was removed from the balance sheet when the sale closed on May 31, 2018. Additionally, as of January 1, 2018, the Company reclassified $105 of stranded tax effects related to continuing operations which reduced AOCI and increased retained earnings. Financial Instruments- Recognition and Measurement On January 1, 2018, the Company adopted updated guidance issued by the FASB for the recognition and measurement of financial instruments through a cumulative effect adjustment to the opening balances of retained earnings and AOCI. The new guidance requires investments in equity securities to be measured at fair value with any changes in valuation reported in net income except for investments that are consolidated or are accounted for under the equity method of accounting. The new guidance also requires a deferred tax asset resulting from net unrealized losses on fixed maturities, available-for-sale that are recognized in AOCI to be evaluated for recoverability in combination with the Company’s other deferred tax assets. Under prior guidance, the Company reported equity securities, available-for-sale ("AFS"), at fair value with changes in fair value reported in other comprehensive income. As of January 1, 2018, the Company reclassified from AOCI to retained earnings net unrealized gains of $83 , after tax, related to equity securities having a fair value of $1.0 billion . In addition, $10 of net unrealized gains net of shadow DAC related to discontinued operations were reclassified from AOCI to retained earnings of the life and annuity business held for sale, which increased the estimated loss on sale in 2018 by the same amount. Beginning in 2018, the Company reports equity securities at fair value with changes in fair value reported in net realized capital gains and losses. Revenue Recognition On January 1, 2018, the Company adopted the FASB’s updated guidance for recognizing revenue from contracts with customers, which excludes insurance contracts and financial instruments. Revenue subject to the guidance is recognized when, or as, goods or services are transferred to customers in an amount that reflects the consideration that an entity is expected to receive in exchange for those goods or services. For all but certain revenues associated with our Hartford Funds business, the updated guidance is consistent with previous guidance for the Company’s transactions and did not have an effect on the Company’s financial position, cash flows or net income. The updated guidance also updated criteria for determining when the Company acts as a principal or an agent. The Company determined that it is the principal for some of its mutual fund distribution service contracts and, upon adoption, reclassified distribution costs of $188 for the year ended December 31, 2017 , that were previously netted against fee income to insurance operating costs and other expenses. Qualitative information about the nature, timing of recognition and cash flows for the Company’s revenues subject to the updated guidance is disclosed below under Significant Accounting Policies-Revenue Recognition and quantitative information is disclosed in Note 4 - Segment Information of Notes to Consolidated Financial Statements. Hedging Activities On January 1, 2019, the Company adopted the FASB's updated guidance for hedge accounting through a cumulative effect adjustment of less than $1 to reclassify cumulative ineffectiveness on cash flow hedges from retained earnings to AOCI. The updates allow hedge accounting for new types of interest rate hedges of financial instruments and simplify documentation requirements to qualify for hedge accounting. In addition, any gain or loss from hedge ineffectiveness is reported in the same income statement line with the effective hedge results and the hedged transaction. For cash flow hedges, the ineffectiveness is recognized in earnings only when the hedged transaction affects earnings; otherwise, the ineffectiveness gains or losses remain in AOCI. Under previous accounting, total hedge ineffectiveness was reported separately in realized capital gains and losses apart from the hedged transaction. The adoption did not affect the Company’s financial position or cash flows or have a material effect on net income. Leases On January 1, 2019, the Company adopted the FASB’s updated lease guidance. Under the updated guidance, lessees with operating leases are required to recognize a liability for the present value of future minimum lease payments with a corresponding asset for the right of use of the property. Prior to the new guidance, future minimum lease payments on operating leases were commitments that were not recognized as liabilities on the balance sheet. Leases are classified as financing or operating leases. Where the lease is economically similar to a purchase because The Hartford obtains control of the underlying asset, the lease is classified as a financing lease and the Company recognizes amortization of the right of use asset and interest expense on the liability. Where the lease provides The Hartford with only the right to control the use of the underlying asset over the lease term and the lease term is greater than one year, the lease is an operating lease and the lease cost is recognized as rental expense over the lease term on a straight-line basis. Leases with a term of one year or less are also expensed over the lease term but not recognized on the balance sheet. On adoption, The Hartford recorded a lease payment obligation of $160 for outstanding leases and a right of use asset of $150 , which is net of $10 in lease incentives received, with no change to comparative periods. As permitted by the new guidance, as of the implementation date, the Company did not reassess whether expired or existing contracts are leases or contain leases, did not change the classification of expired or existing operating leases, and did not reassess initial direct costs for existing leases to determine if deferred costs should be written-off or recorded on adoption. The adoption did not impact net income or cash flows. Future Adoption of New Accounting Standards Goodwill The FASB issued updated guidance on testing goodwill for impairment. The updated guidance requires recognition and measurement of goodwill impairment based on the excess of the carrying value of the reporting unit compared to its estimated fair value, with the amount of the impairment not to exceed the carrying value of the reporting unit’s goodwill. Under existing guidance, if the reporting unit’s carrying value exceeds its estimated fair value, the Company allocates the fair value of the reporting unit to all of the assets and liabilities of the reporting unit to determine an implied goodwill value. An impairment loss is then recognized for the excess, if any, of the carrying value of the reporting unit’s goodwill compared to the implied goodwill value. The Company will adopt the updated guidance January 1, 2020 on a prospective basis as required. The Company would not have recognized a goodwill impairment loss for the years presented had the updated guidance been in effect. Since the estimated fair value of the reporting unit will no longer be allocated to the assets and liabilities of the reporting unit to determine an implied goodwill value, under the updated guidance changes in market-based factors are more likely to result in a goodwill impairment, whether a reporting unit's fair value is estimated using an income approach or a market approach. For example, changes in the weighted average cost of capital that is used to discount expected cash flows under the income approach or changes in market-based factors such as peer company price to earnings multiples or price to book multiples under a market approach can significantly affect changes to the estimated fair value of each reporting unit and such changes could result in impairments that have a material effect on our results of operations and financial condition. Financial Instruments - Credit Losses The FASB issued updated guidance for recognition and measurement of credit losses on financial instruments. The new guidance will replace the “incurred loss” approach with an “expected loss” model for recognizing credit losses for financial instruments carried at other than fair value. Under the new model, an allowance for credit losses ("ACL") will be recorded based on an estimate of credit losses expected over the life of financial instruments carried at other than fair value, such as mortgage loans, reinsurance recoverables and receivables. Under the current accounting model an ACL is recognized using an incurred loss approach. The new guidance also requires that we estimate a liability for credit losses ("LCL") on off-balance-sheet credit exposures such as financial guarantees and mortgage loan commitments that the Company cannot unconditionally cancel. Credit losses on fixed maturities AFS carried at fair value will continue to be measured based on the present value of expected future cash flows; however, the losses will be recognized through an ACL and no longer as an adjustment to the amortized cost. Recoveries of impairments on fixed maturities AFS will be recognized as reversals of the ACL and no longer accreted as investment income through an adjustment to the investment yield. The ACL on fixed maturities AFS cannot cause the net carrying value to be below fair value and, therefore, it is possible that future increases in fair value due to decreases in market interest rates could cause the reversal of a valuation allowance and increase net income. The new guidance also requires purchased financial assets with a more-than-insignificant amount of credit deterioration since original issuance to be recorded based on contractual amounts due with an initial allowance recorded at the date of purchase. The Company will adopt the guidance effective January 1, 2020, through a cumulative effect adjustment to retained earnings of $18 , representing a net increase to the ACL and LCL, after-tax, upon adoption. No ACL will be recognized at adoption for fixed maturities, AFS; rather, these investments will be evaluated for an ACL prospectively. Reserve for Future Policy Benefits The FASB issued new guidance on accounting for long-duration insurance contracts. The Company’s long-duration insurance contracts include paid-up life insurance and whole-life insurance policies resulting from conversion from group life policies and run-off structured settlement and terminal funding agreement liabilities with total future policy benefit reserves of $635 as of December 31, 2019 . Under existing guidance, a reserve for future policy benefits is calculated as the present value of future benefits and related expenses less the present value of any future premiums using assumptions “locked in” at the time the policies were issued, including discount rate, lapse rate, mortality, and expense assumptions. Under existing guidance, assumptions are only updated if there is an expected premium deficiency. The new guidance will require that underlying cash flow assumptions (such as for lapse rate, mortality and expenses) be reviewed and updated at least annually in the same quarter each year. The new guidance also requires that the discount rate assumption be updated each quarter and be based on an upper-medium grade (low-credit-risk) fixed-income investment yield. The change in the reserve estimate as a result of updating cash flow assumptions will be recognized in net income. The change in the reserve estimate as a result of updating the discount rate assumption will be recognized in other comprehensive income. Because reserves will be based on updated assumptions and no longer locked in at contract inception, there will no longer be a test for premium deficiency. The new guidance will be effective January 1, 2022, and will be applied to balances in place as of the earliest period presented. Early adoption is permitted. The Company has not yet determined the method or timing for adoption or estimated the effect on the Company’s financial statements. |
Revenue Recognition | Revenue Recognition Premium Revenue from Direct Insurance and Assumed Reinsurance Property and casualty premiums are earned on a pro rata basis over the policy period and include accruals for policies that have been written by agents but not yet reported to us, as well as ultimate premium revenue anticipated under auditable and retrospectively rated policies. We estimate the amount of premium not yet reported based on current and historical trends of the business being written. Such estimates are regularly reviewed and updated and any resulting adjustments are included in the current year's results. Unearned premiums represent the premiums applicable to the unexpired terms of policies in force. Group life, disability and accident premiums are generally due from policyholders and recognized as revenue on a pro rata basis over the period of the contracts. An estimated allowance for doubtful accounts is recorded on the basis of periodic evaluations of balances due from insureds, management’s experience and current economic conditions. The Company charges off any balances that are determined to be uncollectible. The allowance for doubtful accounts included in premiums receivable and agents’ balances in the Consolidated Balance Sheets was $145 and $135 as of December 31, 2019 and 2018, respectively. Revenue from Non-Insurance Contracts with Customers Installment fees are charged on property and casualty insurance contracts for billing the insurance customer in installments over the policy term. These fees are recognized in fee income as earned on collection. Insurance servicing revenues within Personal Lines consist of up-front commissions earned for collecting premiums and processing claims on insurance policies for which The Hartford does not assume underwriting risk, predominantly related to the National Flood Insurance Plan program. These insurance servicing revenues are recognized over the period of the flood program's policy terms. Group Benefits earns fee income from employers for the administration of underwriting, implementation and claims processing for employer self-funded plans and for leave management services. Fees are recognized as services are provided and collected monthly. Hartford Funds provides investment management, administrative and distribution services to mutual funds and exchange-traded products. The Company assesses investment advisory, distribution and other asset management fees primarily based on the average daily net asset values from mutual funds and exchange-traded products, which are recorded in the period in which the services are provided and are collected monthly. Fluctuations in domestic and international markets and related investment performance, volume and mix of sales and redemptions of mutual funds or exchange-traded products, and other changes to the composition of assets under management are all factors that ultimately have a direct effect on fee income earned. Hartford Funds other fees primarily include transfer agent fees, generally assessed as a charge per account, and are recognized as fee income in the period in which the services are provided with payments collected monthly. Corporate investment management and other fees are primarily for managing third party invested assets, including management of the invested assets of The Hartford’s former life and annuity business. These fees, calculated based on the average quarterly net asset values, are recorded in the period in which the services are provided and are collected quarterly. Fluctuations in markets and interest rates and other changes to the composition of assets under management are all factors that ultimately have a direct effect on fee income earned. Corporate transition service revenues consist of operational services provided to The Hartford’s former life and annuity business that are provided for a limited period following sale. The transition service revenues are recognized as other revenues in the period in which the services are provided with payments collected monthly. |
Dividends to Policyholders | Dividends to Policyholders Policyholder dividends are paid to certain property and casualty policyholders. Policies that receive dividends are referred to as participating policies. Participating dividends to policyholders are accrued and reported in insurance operating costs and other expenses and other liabilities using an estimate of the amount to be paid based on underlying contractual obligations under policies and applicable state laws. Net written premiums for participating property and casualty insurance policies represented 9% , 10% and 10% of total net written premiums for the years ended December 31, 2019 , 2018 and 2017 , respectively. Participating dividends to property and casualty policyholders were $30 , $23 and $35 for the years ended December 31, 2019 , 2018 and 2017 , respectively. There were no additional amounts of income allocated to participating policyholders. |
Investments | Investments Overview The Company’s investments in fixed maturities include bonds, structured securities, redeemable preferred stock and commercial paper. Most of these investments are classified as AFS and are carried at fair value. The after tax difference between fair value and cost or amortized cost is reflected in stockholders’ equity as a component of AOCI. Effective January 1, 2018, equity securities are measured at fair value with any changes in valuation reported in net income. For further information, see Financial Instruments - Recognition and Measurement discussion above. Fixed maturities for which the Company elected the fair value option are classified as FVO, generally certain securities that contain embedded credit derivatives, and are carried at fair value with changes in value recorded in realized capital gains and losses. Mortgage loans are recorded at the outstanding principal balance adjusted for amortization of premiums or discounts and net of valuation allowances. Short-term investments are carried at amortized cost, which approximates fair value. Limited partnerships and other alternative investments are reported at their carrying value and are primarily accounted for under the equity method with the Company’s share of earnings included in net investment income. Recognition of income related to limited partnerships and other alternative investments is delayed due to the availability of the related financial information, as private equity and other funds are generally on a three-month delay and hedge funds on a one-month delay. Accordingly, income for the years ended December 31, 2019 , 2018 , and 2017 may not include the full impact of current year changes in valuation of the underlying assets and liabilities of the funds, which are generally obtained from the limited partnerships. Other investments primarily consist of investments of consolidated investment funds for which the Company has provided seed money and reports the underlying investments at fair value with changes in the fair value recognized in income consistent with accounting requirements for investment companies. Also included in Other investments are derivative instruments which are carried at fair value and overseas deposits which are measured at fair value using the net asset value as a practical expedient. Net Realized Capital Gains and Losses Net realized capital gains and losses from investment sales are reported as a component of revenues and are determined on a specific identification basis. Net realized capital gains and losses also result from fair value changes in fixed maturities, FVO, equity securities, and derivatives contracts that do not qualify, or are not designated, as a hedge for accounting purposes. Impairments and mortgage loan valuation allowances are recognized as net realized capital losses in accordance with the Company’s impairment and mortgage loan valuation allowance policies as discussed in Note 6 - Investments of Notes to Consolidated Financial Statements. Effective January 1, 2020, the Company will record changes in the ACL on fixed maturities, AFS as a component of net realized capital gains and losses. For further information, see Financial Instruments - Credit Losses discussion above. Net Investment Income Interest income from fixed maturities and mortgage loans is recognized when earned on the constant effective yield method based on estimated timing of cash flows. Most premiums and discounts on fixed maturities are amortized to the maturity date. Premiums on callable bonds may be amortized to call dates based on call prices. For securitized financial assets subject to prepayment risk, yields are recalculated and adjusted periodically to reflect historical and/or estimated future prepayments using the retrospective method; however, if these investments are impaired and for certain other asset-backed securities, any yield adjustments are made using the prospective method. Prepayment fees and make-whole payments on fixed maturities and mortgage loans are recorded in net investment income when earned. For equity securities, dividends are recognized as investment income on the ex-dividend date. Limited partnerships and other alternative investments primarily use the equity method of accounting to recognize the Company’s share of earnings. For impaired fixed maturities, the Company accretes the new amortized cost to the estimated future cash flows over the expected remaining life of the investment by prospectively adjusting the effective yield, if necessary. The Company’s non-income producing investments were not material for the years ended December 31, 2019 , 2018 and 2017 . Effective January 1, 2020, the Company will no longer record impairments for credit losses as adjustments to the amortized cost of the fixed maturity, unless there is an intent to sell before recovery from impairment, but rather will record an ACL. Future changes in the ACL resulting from improvements in expected future cash flows will not be recorded as adjustments to yield through net investment income but will be recorded through net realized capital gains (losses). For fixed maturities with an ACL, net investment income will be recognized at the original effective rate and accretion of the ACL will be recognized through net realized capital gains (losses). For further information, see Financial Instruments - Credit Losses discussion above. 90% |
Fair Value of Financial Instruments, Policy [Policy Text Block] | The Company carries certain financial assets and liabilities at estimated fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants. Our fair value framework includes a hierarchy that gives the highest priority to the use of quoted prices in active markets, followed by the use of market observable inputs, followed by the use of unobservable inputs. The fair value hierarchy levels are as follows: Level 1 Fair values based primarily on unadjusted quoted prices for identical assets, or liabilities, in active markets that the Company has the ability to access at the measurement date. Level 2 Fair values primarily based on observable inputs, other than quoted prices included in Level 1, or based on prices for similar assets and liabilities. Level 3 Fair values derived when one or more of the significant inputs are unobservable (including assumptions about risk). With little or no observable market, the determination of fair values uses considerable judgment and represents the Company’s best estimate of an amount that could be realized in a market exchange for the asset or liability. Also included are securities that are traded within illiquid markets and/or priced by independent brokers. The Company will classify the financial asset or liability by level based upon the lowest level input that is significant to the determination of the fair value. In most cases, both observable inputs (e.g., changes in interest rates) and unobservable inputs (e.g., changes in risk assumptions) are used to determine fair values that the Company has classified within Level 3. Valuation Techniques The Company generally determines fair values using valuation techniques that use prices, rates, and other relevant information evident from market transactions involving identical or similar instruments. Valuation techniques also include, where appropriate, estimates of future cash flows that are converted into a single discounted amount using current market expectations. The Company uses a "waterfall" approach comprised of the following pricing sources and techniques, which are listed in priority order: • Quoted prices, unadjusted, for identical assets or liabilities in active markets, which are classified as Level 1. • Prices from third-party pricing services, which primarily utilize a combination of techniques. These services utilize recently reported trades of identical, similar, or benchmark securities making adjustments for market observable inputs available through the reporting date. If there are no recently reported trades, they may use a discounted cash flow technique to develop a price using expected cash flows based upon the anticipated future performance of the underlying collateral discounted at an estimated market rate. Both techniques develop prices that consider the time value of future cash flows and provide a margin for risk, including liquidity and credit risk. Most prices provided by third-party pricing services are classified as Level 2 because the inputs used in pricing the securities are observable. However, some securities that are less liquid or trade less actively are classified as Level 3. Additionally, certain long-dated securities, such as municipal securities and bank loans, include benchmark interest rate or credit spread assumptions that are not observable in the marketplace and are thus classified as Level 3. • Internal matrix pricing, which is a valuation process internally developed for private placement securities for which the Company is unable to obtain a price from a third-party pricing service. Internal pricing matrices determine credit spreads that, when combined with risk-free rates, are applied to contractual cash flows to develop a price. The Company develops credit spreads using market based data for public securities adjusted for credit spread differentials between public and private securities, which are obtained from a survey of multiple private placement brokers. The market-based reference credit spread considers the issuer’s financial strength and term to maturity, using an independent public security index and trade information, while the credit spread differential considers the non-public nature of the security. Securities priced using internal matrix pricing are classified as Level 2 because the inputs are observable or can be corroborated with observable data. • Independent broker quotes, which are typically non-binding, use inputs that can be difficult to corroborate with observable market based data. Brokers may use present value techniques using assumptions specific to the security types, or they may use recent transactions of similar securities. Due to the lack of transparency in the process that brokers use to develop prices, valuations that are based on independent broker quotes are classified as Level 3. The fair value of derivative instruments is determined primarily using a discounted cash flow model or option model technique and incorporates counterparty credit risk. In some cases, quoted market prices for exchange-traded and OTC-cleared derivatives may be used and in other cases independent broker quotes may be used. The pricing valuation models primarily use inputs that are observable in the market or can be corroborated by observable market data. The valuation of certain derivatives may include significant inputs that are unobservable, such as volatility levels, and reflect the Company’s view of what other market participants would use when pricing such instruments. Valuation Controls The process for determining the fair value of investments is monitored by the Valuation Committee, which is a cross-functional group of senior management within the Company. The purpose of the Valuation Committee is to provide oversight of the pricing policy, procedures and controls, including approval of valuation methodologies and pricing sources. The Valuation Committee reviews market data trends, pricing statistics and trading statistics to ensure that prices are reasonable and consistent with our fair value framework. Controls and procedures used to assess third-party pricing services are reviewed by the Valuation Committee, including the results of annual due-diligence reviews. Controls include, but are not limited to, reviewing daily and monthly price changes, stale prices, and missing prices and comparing new trade prices to third-party pricing services, weekly price changes to published bond prices of a corporate bond index, and daily OTC derivative market valuations to counterparty valuations. The Company has a dedicated pricing unit that works with trading and investment professionals to challenge the price received by a third party pricing source if the Company believes that the valuation received does not accurately reflect the fair value. New valuation models and changes to current models require approval by the Valuation Committee. In addition, the Company’s enterprise-wide Operational Risk Management function provides an independent review of the suitability and reliability of model inputs, as well as an analysis of significant changes to current models. Valuation Inputs Quoted prices for identical assets in active markets are considered Level 1 and consist of on-the-run U.S. Treasuries, money market funds, exchange-traded equity securities, open-ended mutual funds, certain short-term investments, and exchange traded futures and option contracts. Valuation Inputs Used in Levels 2 and 3 Measurements for Securities and Derivatives Level 2 Primary Observable Inputs Level 3 Primary Unobservable Inputs Fixed Maturity Investments Structured securities (includes ABS, CLOs, CMBS and RMBS) • Benchmark yields and spreads • Monthly payment information • Collateral performance, which varies by vintage year and includes delinquency rates, loss severity rates and refinancing assumptions • Credit default swap indices Other inputs for ABS, CLOs, and RMBS: • Estimate of future principal prepayments, derived from the characteristics of the underlying structure • Prepayment speeds previously experienced at the interest rate levels projected for the collateral • Independent broker quotes • Credit spreads beyond observable curve • Interest rates beyond observable curve Other inputs for less liquid securities or those that trade less actively, including subprime RMBS: • Estimated cash flows • Credit spreads, which include illiquidity premium • Constant prepayment rates • Constant default rates • Loss severity Corporates • Benchmark yields and spreads • Reported trades, bids, offers of the same or similar securities • Issuer spreads and credit default swap curves Other inputs for investment grade privately placed securities that utilize internal matrix pricing : • Credit spreads for public securities of similar quality, maturity, and sector, adjusted for non-public nature • Independent broker quotes • Credit spreads beyond observable curve • Interest rates beyond observable curve Other inputs for below investment grade privately placed securities and private bank loans: • Independent broker quotes • Credit spreads for public securities of similar quality, maturity, and sector, adjusted for non-public nature U.S Treasuries, Municipals, and Foreign government/government agencies • Benchmark yields and spreads • Issuer credit default swap curves • Political events in emerging market economies • Municipal Securities Rulemaking Board reported trades and material event notices • Issuer financial statements • Credit spreads beyond observable curve • Interest rates beyond observable curve Equity Securities • Quoted prices in markets that are not active • For privately traded equity securities, internal discounted cash flow models utilizing earnings multiples or other cash flow assumptions that are not observable Short-term Investments • Benchmark yields and spreads • Reported trades, bids, offers • Issuer spreads and credit default swap curves • Material event notices and new issue money market rates • Independent broker quotes Derivatives Credit derivatives • Swap yield curve • Credit default swap curves Not applicable Equity derivatives • Equity index levels • Swap yield curve • Independent broker quotes • Equity volatility Foreign exchange derivatives • Swap yield curve • Currency spot and forward rates • Cross currency basis curves Not applicable Interest rate derivatives • Swap yield curve • Independent broker quotes • Interest rate volatility |
Derivatives | Derivative Instruments Overview The Company utilizes a variety of over-the-counter ("OTC") derivatives, derivatives cleared through central clearing houses ("OTC-cleared") and exchange traded derivative instruments as part of its overall risk management strategy as well as to enter into replication transactions. The types of instruments may include swaps, caps, floors, forwards, futures and options to achieve one of four Company-approved objectives: • to hedge risk arising from interest rate, equity market, commodity market, credit spread and issuer default, price or currency exchange rates or volatility; • to manage liquidity; • to control transaction costs; • to enter into synthetic replication transactions. Interest rate and credit default swaps involve the periodic exchange of cash flows with other parties, at specified intervals, calculated using agreed upon rates or other financial variables and notional principal amounts. Generally, little to no cash or principal payments are exchanged at the inception of the contract. Typically, at the time a swap is entered into, the cash flow streams exchanged by the counterparties are equal in value. The Company clears certain interest rate swap and credit default swap derivative transactions through central clearing houses. OTC-cleared derivatives require initial collateral at the inception of the trade in the form of cash or highly liquid securities, such as U.S. Treasuries and government agency investments. Central clearing houses also require additional cash as variation margin based on daily market value movements. For information on collateral, see the derivative collateral arrangements section in Note 7 - Derivatives of Notes to Consolidated Financial Statements. In addition, OTC-cleared transactions include price alignment amounts either received or paid on the variation margin, which are reflected in realized capital gains and losses or, if characterized as interest, in net investment income. Forward contracts are customized commitments that specify a rate of interest or currency exchange rate to be paid or received on an obligation beginning on a future start date and are typically settled in cash. Financial futures are standardized commitments to either purchase or sell designated financial instruments, at a future date, for a specified price and may be settled in cash or through delivery of the underlying instrument. Futures contracts trade on organized exchanges. Margin requirements for futures are met by pledging securities or cash, and changes in the futures’ contract values are settled daily in cash. Option contracts grant the purchaser, for a premium payment, the right to either purchase from or sell to the issuer a financial instrument at a specified price, within a specified period or on a stated date. The contracts may reference commodities, which grant the purchaser the right to either purchase from or sell to the issuer commodities at a specified price, within a specified period or on a stated date. Option contracts are typically settled in cash. Foreign currency swaps exchange an initial principal amount in two currencies, agreeing to re-exchange the currencies at a future date, at an agreed upon exchange rate. There may also be a periodic exchange of payments at specified intervals calculated using the agreed upon rates and exchanged principal amounts. The Company’s derivative transactions conducted in insurance company subsidiaries are used in strategies permitted under the derivative use plans required by the State of Connecticut, the State of Illinois and the State of New York insurance departments. Accounting and Financial Statement Presentation of Derivative Instruments and Hedging Activities Derivative instruments are recognized on the Consolidated Balance Sheets at fair value and are reported in Other Investments and Other Liabilities. For balance sheet presentation purposes, the Company has elected to offset the fair value amounts, income accruals, and related cash collateral receivables and payables of OTC derivative instruments executed in a legal entity and with the same counterparty or under a master netting agreement, which provides the Company with the legal right of offset. On the date the derivative contract is entered into, the Company designates the derivative as (1) a hedge of the fair value of a recognized asset or liability (“fair value” hedge), (2) a hedge of the variability in cash flows of a forecasted transaction or of amounts to be received or paid related to a recognized asset or liability (“cash flow” hedge), (3) a hedge of a net investment in a foreign operation (“net investment” hedge) or (4) held for other investment and/or risk management purposes, which primarily involve managing asset or liability related risks and do not qualify for hedge accounting. The Company currently does not designate any derivatives as fair value or net investment hedges. Cash Flow Hedges - Changes in the fair value of a derivative that is designated and qualifies as a cash flow hedge, including foreign-currency cash flow hedges, are recorded in AOCI and are reclassified into earnings when the variability of the cash flow of the hedged item impacts earnings. Gains and losses on derivative contracts that are reclassified from AOCI to current period earnings are included in the line item in the Consolidated Statements of Operations in which the cash flows of the hedged item are recorded. Periodic derivative net coupon settlements are recorded in the line item of the Consolidated Statements of Operations in which the cash flows of the hedged item are recorded. Cash flows from cash flow hedges are presented in the same category as the cash flows from the items being hedged in the Consolidated Statement of Cash Flows. Other Investment and/or Risk Management Activities - The Company’s other investment and/or risk management activities primarily relate to strategies used to reduce economic risk or replicate permitted investments and do not receive hedge accounting treatment. Changes in the fair value, including periodic derivative net coupon settlements, of derivative instruments held for other investment and/or risk management purposes are reported in current period earnings as net realized capital gains and losses. Hedge Documentation and Effectiveness Testing To qualify for hedge accounting treatment, a derivative must be highly effective in mitigating the designated changes in fair value or cash flow of the hedged item. At hedge inception, the Company formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking each hedge transaction. The documentation process includes linking derivatives that are designated as fair value, cash flow, or net investment hedges to specific assets or liabilities on the balance sheet or to specific forecasted transactions and defining the effectiveness testing methods to be used. The Company also formally assesses both at the hedge’s inception and ongoing on a quarterly basis, whether the derivatives that are used in hedging transactions have been and are expected to continue to be highly effective in offsetting changes in fair values, cash flows or net investment in foreign operations of hedged items. Hedge effectiveness is assessed primarily using quantitative methods as well as using qualitative methods. Quantitative methods include regression or other statistical analysis of changes in fair value or cash flows associated with the hedge relationship. Qualitative methods may include comparison of critical terms of the derivative to the hedged item. Discontinuance of Hedge Accounting The Company discontinues hedge accounting prospectively when (1) it is determined that the qualifying criteria are no longer met; (2) the derivative is no longer designated as a hedging instrument; or (3) the derivative expires or is sold, terminated or exercised. When hedge accounting is discontinued because it is determined that the derivative no longer qualifies as an effective fair value hedge, the derivative continues to be carried at fair value on the balance sheet with changes in its fair value recognized in current period earnings. Changes in the fair value of the hedged item attributable to the hedged risk is no longer adjusted through current period earnings and the existing basis adjustment is amortized to earnings over the remaining life of the hedged item through the applicable earnings component associated with the hedged item. When cash flow hedge accounting is discontinued because the Company becomes aware that it is not probable that the forecasted transaction will occur, the derivative continues to be carried on the balance sheet at its fair value, and gains and losses that were accumulated in AOCI are recognized immediately in earnings. In other situations in which hedge accounting is discontinued, including those where the derivative is sold, terminated or exercised, amounts previously deferred in AOCI are reclassified into earnings when earnings are impacted by the hedged item. Embedded Derivatives The Company purchases investments that contain embedded derivative instruments. When it is determined that (1) the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract and (2) a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is bifurcated from the host for measurement purposes. The embedded derivative, which is reported with the host instrument in the Consolidated Balance Sheets, is carried at fair value with changes in fair value reported in net realized capital gains and losses. Credit Risk of Derivative Instruments Credit risk is defined as the risk of financial loss due to uncertainty of an obligor’s or counterparty’s ability or willingness to meet its obligations in accordance with agreed upon terms. Credit exposures are measured using the market value of the derivatives, resulting in amounts owed to the Company by its counterparties or potential payment obligations from the Company to its counterparties. The Company generally requires that OTC derivative contracts, other than certain forward contracts, be governed by International Swaps and Derivatives Association agreements which are structured by legal entity and by counterparty, and permit right of offset. Some agreements require daily collateral settlement based upon agreed upon thresholds. For purposes of daily derivative collateral maintenance, credit exposures are generally quantified based on the prior business day’s market value and collateral is pledged to and held by, or on behalf of, the Company to the extent the current value of the derivatives is greater than zero, subject to minimum transfer thresholds. The Company also minimizes the credit risk of derivative instruments by entering into transactions with high quality counterparties primarily rated A or better, which are monitored and evaluated by the Company’s risk management team and reviewed by senior management. OTC-cleared derivatives are governed by clearing house rules. Transactions cleared through a central clearing house reduce risk due to their ability to require daily variation margin and act as an independent valuation source. In addition, the Company monitors counterparty credit exposure on a monthly basis to ensure compliance with Company policies and statutory limitations. |
Cash | Cash and Restricted Cash Cash represents cash on hand and demand deposits with banks or other financial institutions. Restrictions on cash primarily relate to funds that are held to support regulatory and contractual obligations. |
Reinsurance | Reinsurance The Company cedes insurance to affiliated and unaffiliated insurers in order to limit its maximum losses and to diversify its exposures and provide statutory surplus relief. Such arrangements do not relieve the Company of its primary liability to policyholders. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company also assumes reinsurance from other insurers and is a member of and participates in reinsurance pools and associations. Assumed reinsurance refers to the Company’s acceptance of certain insurance risks that other insurance companies or pools have underwritten. Reinsurance accounting is followed for ceded and assumed transactions that provide indemnification against loss or liability relating to insurance risk (i.e. risk transfer). To meet risk transfer requirements, a reinsurance agreement must include insurance risk, consisting of underwriting and timing risk, and a reasonable possibility of a significant loss to the reinsurer. If the ceded and assumed transactions do not meet risk transfer requirements, the Company accounts for these transactions as financing transactions. Premiums, benefits, losses and loss adjustment expenses reflect the net effects of ceded and assumed reinsurance transactions. Included in other assets are prepaid reinsurance premiums, which represent the portion of premiums ceded to reinsurers applicable to the unexpired terms of the reinsurance contracts. Reinsurance recoverables are balances due from reinsurance companies for paid and unpaid losses and loss adjustment expenses and are presented net of an allowance for uncollectible reinsurance. Changes in the allowance for uncollectible reinsurance are reported in benefits, losses and loss adjustment expenses in the Company's Consolidated Statements of Operations. The Company evaluates the financial condition of its reinsurers and concentrations of credit risk. Reinsurance is placed with reinsurers that meet strict financial criteria established by the Company. Retroactive reinsurance agreements, including adverse development covers, are reinsurance agreements under which our reinsurer agrees to reimburse us as a result of past insurable events. For these agreements, the consideration paid in excess of the estimated ultimate losses recoverable under the agreement at inception is recognized as a loss on reinsurance transaction. The benefit of subsequent adverse development ceded up to the total consideration paid is recognized as ceded losses and loss adjustment expenses. The excess of the estimated amounts ultimately recoverable under the agreement over the consideration paid is recognized as a deferred gain liability and amortized into income over the period the ceded losses are recovered in cash from the reinsurer. The amount of the deferred gain liability is recalculated each period based on cumulative recoveries not yet collected relative to the latest estimate of ultimate losses recoverable. Ceded loss reserves under retroactive agreements were $747 and $523 , and the deferred gain liability reported in other liabilities was $16 and $0 , as of December 31, 2019 and 2018, respectively. In any given period, the change in deferred gain included in net income includes amortization of the deferred gain based on the percentage of ultimate ceded losses collected plus any change in the deferred gain liability due to changes in the estimated ultimate losses recoverable. The effect on income from change in the deferred gain was a charge to earnings of $16 for the year ended December 31, 2019. There was no change in the deferred gain in 2018 or 2017. |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs DAC represents costs that are directly related to the acquisition of new and renewal insurance contracts and incremental direct costs of contract acquisition that are incurred in transactions with independent third parties or in compensation to employees. Such costs primarily include commissions, premium taxes, costs of policy issuance and underwriting, and certain other expenses that are directly related to successfully issued contracts. For property and casualty insurance products and group life, disability and accident contracts, costs are deferred and amortized ratably over the period the related premiums are earned. Deferred acquisition costs are reviewed to determine if they are recoverable from future income, and if not, are charged to expense. Anticipated investment income is considered in the determination of the recoverability of DAC. |
Income Taxes | Income Taxes The Company recognizes taxes payable or refundable for the current year and deferred taxes for the tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years the temporary differences are expected to reverse. A deferred tax provision is recorded for the tax effects of differences between the Company's current taxable income and its income before tax under generally accepted accounting principles in the Consolidated Statements of Operations. For deferred tax assets, the Company records a valuation allowance that is adequate to reduce the total deferred tax asset to an amount that will more likely than not be realized. |
Goodwill and Intangible Assets | Goodwill Goodwill represents the excess of the cost to acquire a business over the fair value of net assets acquired. Goodwill is not amortized but is reviewed for impairment at least annually or more frequently if events occur or circumstances change that would indicate that a triggering event for a potential impairment has occurred. The goodwill impairment test follows a two-step process. In the first step, the fair value of a reporting unit is compared to its carrying value. A reporting unit is defined as an operating segment or one level below an operating segment. The Company’s reporting units, for which goodwill has been allocated consist of Commercial Lines, Personal Lines, Group Benefits, and Hartford Funds. If the carrying value of a reporting unit exceeds its fair value, the second step of the impairment test is performed for purposes of measuring the impairment. In the second step, the fair value of the reporting unit is allocated to all of the assets and liabilities of the reporting unit to determine an implied goodwill value. If the carrying amount of the reporting unit’s goodwill exceeds the implied goodwill value, an impairment loss is recognized in an amount equal to that excess. Effective January 1, 2020, the goodwill impairment measurement will be based on the first step only and, as such, goodwill will be impaired up to the amount that the carrying value of the reporting unit exceeds the fair value. For further information, see Goodwill discussion above. Management’s determination of the fair value of each reporting unit incorporates multiple inputs into discounted cash flow calculations, including assumptions that market participants would make in valuing the reporting unit. Assumptions include levels of economic capital required to support the business, future business growth, earnings projections, the weighted average cost of capital used for purposes of discounting and, for the Hartford Funds segment, assets under management. Decreases in business growth, decreases in earnings projections and increases in the weighted average cost of capital will all cause a reporting unit’s fair value to decrease, increasing the possibility of impairments. Intangible Assets Acquired intangible assets on the Consolidated Balance Sheets include purchased customer relationship and agency or other distribution rights and licenses measured at fair value at acquisition. The Company amortizes finite-lived other intangible assets over their useful lives generally on a straight-line basis over the period of expected benefit, ranging from 1 to 15 years. Management revises amortization periods if it believes there has been a change in the length of time that an intangible asset will continue to have value. Indefinite-lived intangible assets are not subject to amortization. Intangible assets are assessed for impairment generally when events or circumstances indicate a potential impairment and at least annually for indefinite-lived intangibles. Finite-lived intangible assets are impaired if the carrying amount is not recoverable from undiscounted cash flows. Indefinite-lived intangible assets are impaired if the carrying amount exceeds fair value. Impaired intangible assets are written down to fair value. |
Property and Equipment | Property and Equipment Property and equipment, which includes capitalized software, is carried at cost net of accumulated depreciation. Depreciation is based on the estimated useful lives of the various classes of property and equipment and is determined principally on the straight-line method. Accumulated depreciation was $1.9 billion and $1.6 billion as of December 31, 2019 and 2018 , respectively. Depreciation expense was $283 , $232 , and $197 for the years ended December 31, 2019 , 2018 and 2017 , respectively. |
Unpaid Policy Claims and Claims Adjustment Expenses | Unpaid Losses and Loss Adjustment Expenses For property and casualty and group life and disability insurance and assumed reinsurance products, the Company establishes reserves for unpaid losses and loss adjustment expenses to provide for the estimated costs of paying claims under insurance policies written by the Company. These reserves include estimates for both claims that have been reported and those that have been incurred but not reported ("IBNR"), and include estimates of all losses and loss adjustment expenses associated with processing and settling these claims. Estimating the ultimate cost of future losses and loss adjustment expenses is an uncertain and complex process. This estimation process is based significantly on the assumption that past developments are an appropriate predictor of future events, and involves a variety of actuarial techniques that analyze experience, trends and other relevant factors. The effects of inflation are implicitly considered in the reserving process. A number of complex factors influence the uncertainties involved with the reserving process including social and economic trends and changes in the concepts of legal liability and damage awards. Accordingly, final claim settlements may vary from the present estimates, particularly when those payments may not occur until well into the future. The Company regularly reviews the adequacy of its estimated losses and loss adjustment expense reserves by reserve line within the various reporting segments. Adjustments to previously established reserves are reflected in the operating results of the period in which the adjustment is determined to be necessary. Such adjustments could possibly be significant, reflecting any variety of new and adverse or favorable trends. Most of the Company’s property and casualty insurance products reserves are not discounted. However, the Company has discounted to present value certain reserves for indemnity payments that are due to claimants under workers’ compensation policies because the payment pattern and the ultimate costs are reasonably fixed and determinable on an individual claim basis. The discount rate is based on the risk free rate for the expected claim duration as determined in the year the claims were incurred. The Company also has discounted liabilities for structured settlement agreements that provide fixed periodic payments to claimants. These structured settlements include annuities purchased to fund unpaid losses for permanently disabled claimants. These structured settlement liabilities are discounted to present value using the rate implicit in the purchased annuities and the purchased annuities are accounted for within reinsurance recoverables. Group life and disability contracts with long-tail claim liabilities are discounted because the payment pattern and the ultimate costs are reasonably fixed and determinable on an individual claim basis. The discount rates are estimated based on investment yields expected to be earned on the cash flows net of investment expenses and expected credit losses. The Company establishes discount rates for these reserves in the year the claims are incurred (the incurral year) which is when the estimated settlement pattern is determined. The discount rate for life and disability reserves acquired from Aetna's U.S. group life and disability business were based on interest rates in effect at the acquisition date of November 1, 2017. For further information about how unpaid losses and loss adjustment expenses are established, see Note 11 - Reserve for Unpaid Losses and Loss Adjustment Expenses of Notes to Consolidated Financial Statements. |
Foreign Currency | Foreign Currency Foreign currency translation gains and losses are reflected in stockholders’ equity as a component of AOCI. The Company’s foreign subsidiaries’ balance sheet accounts are translated at the exchange rates in effect at each year end and income statement accounts are translated at the average rates of exchange prevailing during the year. The national currencies of the international operations are generally their functional currencies; however, the U.S. dollar is the functional currency of Lloyd's Syndicate 1221 ("Lloyd's Syndicate"), the Lloyd's Syndicate for which the Company is the sole corporate member, in the U.K. Gains and losses resulting from the remeasurement of foreign currency transactions are reflected in earnings in realized capital gains (losses) in the period in which they occur. |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | Fair Value of Assets Acquired and Liabilities Assumed at the Acquisition Date Preliminary Value as of November 1, 2017 (as previously reported as of December 31, 2017) Measurement Period Adjustments As Adjusted Value as of November 1, 2017 Assets Cash and invested assets $ 3,360 $ 45 $ 3,405 Premiums receivable 96 7 103 Deferred income taxes, net 56 13 69 Other intangible assets 629 — 629 Property and equipment 68 — 68 Reinsurance recoverables — 31 31 Other assets 16 (16 ) — Total Assets Acquired 4,225 80 4,305 Liabilities Unpaid losses and loss adjustment expenses 2,833 71 2,904 Reserve for future policy benefits payable 346 1 347 Other policyholder funds and benefits payable 245 1 246 Unearned premiums 3 1 4 Other liabilities 69 6 75 Total Liabilities Assumed 3,496 80 3,576 Net identifiable assets acquired 729 — 729 Goodwill [1] 723 — 723 Net Assets Acquired $ 1,452 $ — $ 1,452 [1] Approximately $ 610 is deductible for income tax purposes. Fair Value of Assets Acquired and Liabilities Assumed at the Acquisition Date As of May 23, 2019 Assets Cash and invested assets $ 3,848 Premiums receivable 492 Reinsurance recoverables 1,100 Prepaid reinsurance premiums 238 Other intangible assets 580 Property and equipment 83 Other assets 99 Total Assets Acquired 6,440 Liabilities Unpaid losses and loss adjustment expenses 2,823 Unearned premiums 1,219 Long-term debt 284 Deferred income taxes, net 48 Other liabilities 568 Total Liabilities Assumed 4,942 Net identifiable assets acquired 1,498 Goodwill [1] 623 Net Assets Acquired $ 2,121 [1] Non-deductible for income tax purposes. |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | Intangible Assets Recorded in Connection with the Acquisition Asset Amount Weighted Average Expected Life Value of in-force contracts - Property and Casualty ("P&C") $ 180 1 Distribution relationships 302 15 Trade name 17 10 Total finite life intangibles 499 10 Capacity of Lloyd's Syndicate 66 Licenses 15 Total indefinite life intangibles 81 Total other intangible assets $ 580 Intangible Assets Recorded in Connection with the Acquisition Asset Amount Estimated Useful Life Value of in-force contracts $ 23 1 year Customer relationships 590 15 years Marketing agreement with Aetna 16 15 years Total $ 629 |
Business Acquisition, Pro Forma Information | Pro Forma Results (Unaudited) Twelve months ended December 31, 2017 [1] Total Revenue $ 18,899 Net Income $ (3,077 ) [1]Pro forma adjustments include the revenue and earnings of the Aetna U.S. group life and disability business as well as amortization of identifiable intangible assets acquired and the fair value adjustment to acquired insurance reserves. Pro forma adjustments do not include retrospective adjustments to defer and amortize acquisition costs as would be recorded under the Company’s accounting policy. Pro Forma Results for the Year Ended December 31 Revenue Earnings 2019 Supplemental (unaudited) combined pro forma $ 21,416 $ 2,080 2018 Supplemental (unaudited) combined pro forma $ 20,398 $ 1,828 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Common Share | Computation of Basic and Diluted Earnings per Common Share For the years ended December 31, (In millions, except for per share data) 2019 2018 2017 Earnings Income (loss) from continuing operations, net of tax $ 2,085 $ 1,485 $ (262 ) Less: Preferred stock dividends 21 6 — Income (loss) from continuing operations, net of tax, available to common stockholders 2,064 1,479 (262 ) Income (loss) from discontinued operations, net of tax, available to common stockholders — 322 (2,869 ) Net income (loss) available to common stockholders $ 2,064 $ 1,801 $ (3,131 ) Shares Weighted average common shares outstanding, basic 360.9 358.4 363.7 Dilutive effect of warrants [1] 0.5 1.9 — Dilutive effect of stock-based awards under compensation plans 3.5 3.8 — Weighted average common shares outstanding and dilutive potential common shares [2] 364.9 364.1 363.7 Earnings per common share Basic Income (loss) from continuing operations, net of tax, available to common stockholders $ 5.72 $ 4.13 $ (0.72 ) Income (loss) from discontinued operations, net of tax, available to common stockholders — 0.90 (7.89 ) Net income (loss) available to common stockholders $ 5.72 $ 5.03 $ (8.61 ) Diluted Income (loss) from continuing operations, net of tax, available to common stockholders $ 5.66 $ 4.06 $ (0.72 ) Income (loss) from discontinued operations, net of tax, available to common stockholders — 0.89 (7.89 ) Net income (loss) available to common stockholders $ 5.66 $ 4.95 $ (8.61 ) [1] On June 26, 2019 the Capital Purchase Program warrants issued in 2009 expired. [2] For additional information, see Note 15 - Equity and Note 19 - Stock Compensation Plans of Notes to Consolidated Financial Statements. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | Revenues For the years ended December 31, 2019 2018 2017 Earned premiums and fee income: Commercial Lines Workers’ compensation $ 3,314 $ 3,341 $ 3,287 Liability 1,064 653 604 Marine 147 — — Package business 1,471 1,364 1,301 Property 728 618 604 Professional liability 447 254 246 Bond 261 241 230 Assumed reinsurance 180 — — Automobile 713 610 630 Total Commercial Lines 8,325 7,081 6,902 Personal Lines Automobile 2,248 2,398 2,617 Homeowners 987 1,041 1,117 Total Personal Lines [1] 3,235 3,439 3,734 Property & Casualty Other Operations 2 — — Group Benefits Group disability 2,828 2,746 1,718 Group life 2,521 2,611 1,745 Other 254 241 214 Total Group Benefits 5,603 5,598 3,677 Hartford Funds Mutual fund and ETP 907 932 888 Talcott Resolution life and annuity separate accounts [2] 92 100 104 Total Hartford Funds [3] 999 1,032 992 Corporate 60 32 4 Total earned premiums and fee income 18,224 17,182 15,309 Total net investment income 1,951 1,780 1,603 Net realized capital gains (losses) 395 (112 ) 165 Other revenues 170 105 85 Total revenues $ 20,740 $ 18,955 $ 17,162 [1] For 2019 , 2018 and 2017 , AARP members accounted for earned premiums of $2.9 billion , $3.0 billion and $3.2 billion , respectively. [2] Represents revenues earned on the life and annuity separate account AUM sold in May 2018 that is still managed by the Company's Hartford Funds segment. [3] Excludes distribution costs of $188 for the year ended December 31, 2017, that were previously netted against fee income and are now presented gross in insurance operating costs and other expenses. |
Reconciliation of Net Income from Segments to Consolidated | Net Income (Loss) For the years ended December 31, 2019 2018 2017 Commercial Lines $ 1,192 $ 1,212 $ 865 Personal Lines 318 (32 ) (9 ) Property & Casualty Other Operations 61 15 69 Group Benefits 536 340 294 Hartford Funds 149 148 106 Corporate (171 ) 124 (4,456 ) Net income (loss) $ 2,085 $ 1,807 $ (3,131 ) Preferred stock dividends 21 6 — Net income (loss) available to common stockholders $ 2,064 $ 1,801 $ (3,131 ) |
Reconciliation of Other Significant Reconciling Item from Segments to Consolidated | Net Investment Income For the years ended December 31, 2019 2018 2017 Commercial Lines $ 1,129 $ 997 $ 949 Personal Lines 179 155 141 Property & Casualty Other Operations 84 90 106 Group Benefits 486 474 381 Hartford Funds 7 5 3 Corporate 66 59 23 Net investment income $ 1,951 $ 1,780 $ 1,603 Amortization of Deferred Policy Acquisition Costs For the years ended December 31, 2019 2018 2017 Commercial Lines $ 1,296 $ 1,048 $ 1,009 Personal Lines 259 275 309 Group Benefits 54 45 33 Hartford Funds 12 16 21 Corporate 1 — — Total amortization of deferred policy acquisition costs $ 1,622 $ 1,384 $ 1,372 Amortization of Other Intangible Assets For the years ended December 31, 2019 2018 2017 Commercial Lines $ 18 $ 4 $ 1 Personal Lines 6 4 4 Group Benefits 41 60 9 Corporate 1 — — Total amortization of other intangible assets $ 66 $ 68 $ 14 Income Tax Expense (Benefit) For the years ended December 31, 2019 2018 2017 Commercial Lines $ 270 $ 267 $ 377 Personal Lines 76 (19 ) 26 Property & Casualty Other Operations 12 (7 ) 24 Group Benefits 126 84 38 Hartford Funds 37 38 63 Corporate (46 ) (95 ) 457 Total income tax expense $ 475 $ 268 $ 985 |
Reconciliation of Assets from Segment to Consolidated | Assets As of December 31, 2019 2018 Commercial Lines $ 42,041 $ 31,693 Personal Lines 6,310 6,180 Property & Casualty Other Operations 3,560 3,351 Group Benefits 14,595 14,114 Hartford Funds 634 583 Corporate 3,677 6,386 Total assets $ 70,817 $ 62,307 |
Disaggregation of Revenue [Table Text Block] | Revenue from Non-Insurance Contracts with Customers For the years ended December 31, Revenue Line Item 2019 2018 2017 Commercial Lines Installment billing fees Fee income $ 35 $ 34 $ 37 Personal Lines Installment billing fees Fee income 37 40 44 Insurance servicing revenues Other revenues 83 84 85 Group Benefits Administrative services Fee income 180 175 91 Hartford Funds Advisor, distribution and other management fees Fee income 911 947 897 Other fees Fee income 88 85 95 Corporate Investment management and other fees Fee income 50 32 4 Transition service revenues Other revenues 20 21 — Total non-insurance revenues with customers $ 1,404 $ 1,418 $ 1,253 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of December 31, 2019 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets accounted for at fair value on a recurring basis Fixed maturities, AFS Asset backed securities ("ABS") $ 1,476 $ — $ 1,461 $ 15 Collateralized loan obligations ("CLOs") 2,183 — 2,088 95 Commercial mortgage-backed securities ("CMBS") 4,338 — 4,329 9 Corporate 17,396 — 16,664 732 Foreign government/government agencies 1,123 — 1,120 3 Municipal 9,498 — 9,498 — Residential mortgage-backed securities ("RMBS") 4,869 — 4,309 560 U.S. Treasuries 1,265 330 935 — Total fixed maturities 42,148 330 40,404 1,414 Fixed maturities, FVO 11 — 11 — Equity securities, at fair value 1,657 1,401 183 73 Derivative assets Credit derivatives 11 — 11 — Interest rate derivatives 1 — 1 — Total derivative assets [1] 12 — 12 — Short-term investments 2,921 1,028 1,878 15 Total assets accounted for at fair value on a recurring basis $ 46,749 $ 2,759 $ 42,488 $ 1,502 Liabilities accounted for at fair value on a recurring basis Derivative liabilities Credit derivatives $ (1 ) $ — $ (1 ) $ — Equity derivatives (15 ) — — (15 ) Foreign exchange derivatives (2 ) — (2 ) — Interest rate derivatives (60 ) — (60 ) — Total derivative liabilities [2] (78 ) — (63 ) (15 ) Contingent consideration [3] (22 ) — — (22 ) Total liabilities accounted for at fair value on a recurring basis $ (100 ) $ — $ (63 ) $ (37 ) Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of December 31, 2018 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets accounted for at fair value on a recurring basis Fixed maturities, AFS ABS $ 1,276 $ — $ 1,266 $ 10 CLO 1,437 — 1,337 100 CMBS 3,552 — 3,540 12 Corporate 13,398 — 12,878 520 Foreign government/government agencies 847 — 844 3 Municipal 10,346 — 10,346 — RMBS 3,279 — 2,359 920 U.S. Treasuries 1,517 330 1,187 — Total fixed maturities 35,652 330 33,757 1,565 Fixed maturities, FVO 22 — 22 — Equity securities, at fair value 1,214 1,093 44 77 Derivative assets Credit derivatives 5 — 5 — Equity derivatives 3 — — 3 Foreign exchange derivatives (2 ) — (2 ) — Interest rate derivatives 1 — 1 — Total derivative assets [1] 7 — 4 3 Short-term investments 4,283 1,039 3,244 — Total assets accounted for at fair value on a recurring basis $ 41,178 $ 2,462 $ 37,071 $ 1,645 Liabilities accounted for at fair value on a recurring basis Derivative liabilities Credit derivatives $ (2 ) $ — $ (2 ) $ — Equity derivatives 1 — 1 — Foreign exchange derivatives (5 ) — (5 ) — Interest rate derivatives (62 ) — (63 ) 1 Total derivative liabilities [2] (68 ) — (69 ) 1 Contingent consideration [3] (35 ) — — (35 ) Total liabilities accounted for at fair value on a recurring basis $ (103 ) $ — $ (69 ) $ (34 ) [1] Includes derivative instruments in a net positive fair value position after consideration of the accrued interest and impact of collateral posting requirements which may be imposed by agreements and applicable law. See footnote 2 to this table for derivative liabilities. [2] Includes derivative instruments in a net negative fair value position (derivative liability) after consideration of the accrued interest and impact of collateral posting requirements which may be imposed by agreements and applicable law. [3] For additional information see the Contingent Consideration section below. |
Fair Value Inputs, Assets, Quantitative Information | Significant Unobservable Inputs for Level 3 - Derivatives Fair Value Predominant Valuation Technique Significant Unobservable Input Minimum Maximum Weighted Average [1] Impact of Increase in Input on Fair Value [2] As of December 31, 2019 Equity options $ (15 ) Option model Equity volatility 13 % 28 % 17 % Increase As of December 31, 2018 Interest rate swaptions [3] $ 1 Option model Interest rate volatility 3 % 3 % 3 % Increase Equity options $ 3 Option model Equity volatility 19 % 21 % 20 % Increase [1] The weighted average is determined based on the fair value of the derivatives. [2] Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table. Changes are based on long positions, unless otherwise noted. Changes in fair value will be inversely impacted for short positions. [3] The swaptions presented are purchased options that have the right to enter into a pay-fixed swap. Significant Unobservable Inputs for Level 3 - Securities Assets accounted for at fair value on a recurring basis Fair Value Predominant Valuation Technique Significant Unobservable Input Minimum Maximum Weighted Average [1] Impact of Increase in Input on Fair Value [2] As of December 31, 2019 CLOs [3] $ 95 Discounted cash flows Spread 246 bps 246 bps 246 bps Decrease CMBS [3] $ 1 Discounted cash flows Spread (encompasses prepayment, default risk and loss severity) 9 bps 1,832 bps 161 bps Decrease Corporate [4] $ 633 Discounted cash flows Spread 93 bps 788 bps 236 bps Decrease RMBS [3] $ 560 Discounted cash flows Spread [6] 5 bps 233 bps 79 bps Decrease Constant prepayment rate [6] —% 11% 6% Decrease [5] Constant default rate [6] 1% 6% 3% Decrease Loss severity [6] —% 100% 70% Decrease As of December 31, 2018 CMBS [3] $ 2 Discounted cash flows Spread (encompasses prepayment, default risk and loss severity) 9 bps 1,040 bps 182 bps Decrease Corporate [4] $ 274 Discounted cash flows Spread 145 bps 1,175 bps 263 bps Decrease RMBS [3] $ 815 Discounted cash flows Spread [6] 12 bps 215 bps 86 bps Decrease Constant prepayment rate [6] 1% 15% 6% Decrease [5] Constant default rate [6] 1% 8% 3% Decrease Loss severity [6] —% 100% 61% Decrease [1] The weighted average is determined based on the fair value of the securities. [2] Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table. [3] Excludes securities for which the Company bases fair value on broker quotations. [4] Excludes securities for which the Company bases fair value on broker quotations; however, included are broker priced lower-rated private placement securities for which the Company receives spread and yield information to corroborate the fair value. [5] Decrease for above market rate coupons and increase for below market rate coupons. [6] Generally, a change in the assumption used for the constant default rate would have been accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumption used for constant prepayment rate and would have resulted in wider spreads. |
Fair Value, Assets (Liabilities) Measured on Recurring Basis, Unobservable Input Reconciliation | Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Year Ended December 31, 2019 Total realized/unrealized gains (losses) Fair value as of January 1, 2019 Included in net income [1] Included in OCI [2] Purchases Settlements Sales Transfers into Level 3 [3] Transfers out of Level 3 [3] Fair value as of December 31, 2019 Assets Fixed Maturities, AFS ABS $ 10 $ — $ — $ 20 $ (1 ) $ — $ — $ (14 ) $ 15 CLOs 100 — — 329 (127 ) (6 ) — (201 ) 95 CMBS 12 — 1 34 (4 ) — — (34 ) 9 Corporate 520 (4 ) 16 354 (59 ) (88 ) 61 (68 ) 732 Foreign Govt./Govt. Agencies 3 — — — — — — — 3 RMBS 920 1 (8 ) 134 (214 ) (35 ) — (238 ) 560 Total Fixed Maturities, AFS 1,565 (3 ) 9 871 (405 ) (129 ) 61 (555 ) 1,414 Equity Securities, at fair value 77 — — 9 — (13 ) — — 73 Derivatives, net [4] Interest rate 1 (1 ) — — — — — — — Total Derivatives, net [4] 1 (1 ) — — — — — — — Short-term investments — — — 15 — — — — 15 Total Assets 1,643 (4 ) 9 895 (405 ) (142 ) 61 (555 ) 1,502 Liabilities Derivatives, net [4] Equity 3 (18 ) — — — — — — (15 ) Total Derivatives, net [4] 3 (18 ) — — — — — — (15 ) Contingent Consideration (35 ) (7 ) — — 20 — — — (22 ) Total Liabilities $ (32 ) $ (25 ) $ — $ — $ 20 $ — $ — $ — $ (37 ) Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Year Ended December 31, 2018 Total realized/unrealized gains (losses) Fair value as of January 1, 2018 Included in net income [1] Included in OCI [2] Purchases Settlements Sales Transfers into Level 3 [3] Transfers out of Level 3 [3] Fair value as of December 31, 2018 Assets Fixed Maturities, AFS ABS $ 19 $ — $ — $ 90 $ (5 ) $ (4 ) $ 12 $ (102 ) $ 10 CLOs 95 — — 330 — (13 ) — (312 ) 100 CMBS 69 (1 ) — 25 (14 ) (8 ) — (59 ) 12 Corporate 520 1 (18 ) 197 (36 ) (52 ) 31 (123 ) 520 Foreign Govt./Govt. Agencies 2 — — 1 — — — — 3 Municipal 17 — (1 ) — — (1 ) — (15 ) — RMBS 1,230 — (16 ) 273 (319 ) (52 ) 4 (200 ) 920 Total Fixed Maturities, AFS 1,952 — (35 ) 916 (374 ) (130 ) 47 (811 ) 1,565 Equity Securities, at fair value 76 29 — 12 — (40 ) — — 77 Derivatives, net [4] Equity 1 3 — 1 — (2 ) — — 3 Interest rate 1 — — — — — — — 1 Total Derivatives, net [4] 2 3 — 1 — (2 ) — — 4 Total Assets 2,030 32 (35 ) 929 (374 ) (172 ) 47 (811 ) 1,646 Liabilities Contingent Considerations (29 ) (6 ) — — — — — — (35 ) Total Liabilities $ (29 ) $ (6 ) $ — $ — $ — $ — $ — $ — $ (35 ) [1] Amounts in these columns are generally reported in net realized capital gains (losses). All amounts are before income taxes. [2] All amounts are before income taxes. [3] Transfers in and/or (out) of Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs. [4] Derivative instruments are reported in this table on a net basis for asset (liability) positions and reported in the Consolidated Balance Sheets in other investments and other liabilities. Changes in Unrealized Gains (Losses) for Financial Instruments Classified as Level 3 Still Held at Year End December 31, 2019 2018 Changes in Unrealized Gain/(Loss) included in Net Income [1] [2] Changes in Unrealized Gain/(Loss) included in OCI [3] Changes in Unrealized Gain/(Loss) included in Net Income [1] [2] Changes in Unrealized Gain/(Loss) included in OCI [3] Assets Fixed Maturities, AFS ABS $ — $ — $ — $ 1 CMBS — 1 (1 ) 28 Corporate (2 ) 15 — (42 ) Foreign Govt./Govt. Agencies — 1 — — Municipal — — — 24 RMBS — (7 ) — 17 Total Fixed Maturities, AFS (2 ) 10 (1 ) 28 Equity Securities, at fair value 1 — — — Derivatives, net Equity (18 ) — 1 Interest rate (1 ) — — — Total Derivatives, net (19 ) — 1 — Total Assets (20 ) 10 — 28 Liabilities Contingent Consideration (7 ) (6 ) Total Liabilities $ (7 ) $ — $ (6 ) $ — [1] All amounts in these rows are reported in net realized capital gains (losses). All amounts are before income taxes. [2] Amounts presented are for Level 3 only and therefore may not agree to other disclosures included herein. [3] Changes in unrealized gain/(loss) on fixed maturities, AFS are reported in changes in net unrealized gain on securities in the Consolidated Statements of Comprehensive Income. Changes in interest rate derivatives are reported in changes in net gain on cash flow hedging instruments in the Consolidated Statements of Comprehensive Income. |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | Financial Assets and Liabilities Not Carried at Fair Value December 31, 2019 December 31, 2018 Fair Value Hierarchy Level Carrying Amount Fair Value Fair Value Hierarchy Level Carrying Amount Fair Value Assets Mortgage loans Level 3 $ 4,215 $ 4,350 Level 3 $ 3,704 $ 3,746 Liabilities Other policyholder funds and benefits payable Level 3 $ 763 $ 765 Level 3 $ 774 $ 775 Senior notes [1] Level 2 $ 3,759 $ 4,456 Level 2 $ 3,589 $ 3,887 Junior subordinated debentures [1] Level 2 $ 1,089 $ 1,153 Level 2 $ 1,089 $ 1,052 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments [Abstract] | |
Net Investment Income | Net Investment Income For the years ended December 31, (Before tax) 2019 2018 2017 Fixed maturities [1] $ 1,559 $ 1,459 $ 1,303 Equity securities 46 32 24 Mortgage loans 165 141 124 Limited partnerships and other alternative investments 232 205 174 Other investments [2] 32 20 49 Investment expenses (83 ) (77 ) (71 ) Total net investment income $ 1,951 $ 1,780 $ 1,603 [1] Includes net investment income on short-term investments. [2] Includes income from derivatives that hedge fixed maturities and qualify for hedge accounting. |
Net Realized Capital Gains (Losses) | Net Realized Capital Gains (Losses) For the years ended December 31, (Before tax) 2019 2018 2017 Gross gains on sales $ 234 $ 114 $ 275 Gross losses on sales (56 ) (172 ) (113 ) Equity securities [1] 254 (48 ) — Net OTTI losses recognized in earnings (3 ) (1 ) (8 ) Valuation allowances on mortgage loans 1 — (1 ) Other, net [2] (35 ) (5 ) 12 Net realized capital gains (losses) $ 395 $ (112 ) $ 165 [1] The net unrealized gain (loss) on equity securities included in net realized capital gains (losses) related to equity securities still held as of December 31, 2019 , were $164 for the year-ended December 31, 2019 . The net unrealized gain (loss) on equity securities included in net realized capital gains (losses) related to equity securities still held as of December 31, 2018 , were $(80) for the year-ended December 31, 2018 . Prior to January 1, 2018, changes in net unrealized gains (losses) on equity securities were included in AOCI. [2] For the years ended December 31, 2019, 2018 and 2017, gains (losses) from transactional foreign currency revaluation were $ (9) , $1 and $14 , respectively. Also includes gains (losses) on non-qualifying derivatives of $(24) , $(12) , and $(6) , respectively for 2019 , 2018 and 2017 . |
Sales of AFS Securities | Sales of AFS Securities For the years ended December 31, 2019 2018 2017 Fixed maturities, AFS Sale proceeds $ 14,421 $ 21,327 $ 17,614 Gross gains 233 90 204 Gross losses (56 ) (169 ) (90 ) Equity securities, AFS Sale proceeds $ 607 Gross gains 69 Gross losses (23 ) |
Impairments | Impairments in Earnings by Type For the years ended December 31, 2019 2018 2017 Credit impairments $ 3 $ 1 $ 2 Impairments on equity securities 6 Total impairments $ 3 $ 1 $ 8 Cumulative Credit Impairments For the years ended December 31, (Before tax) 2019 2018 2017 Balance as of beginning of period $ (19 ) $ (25 ) $ (110 ) Additions for credit impairments recognized on [1]: Securities not previously impaired (3 ) — (1 ) Securities previously impaired — (1 ) (1 ) Reductions for credit impairments previously recognized on: Securities that matured or were sold during the period 3 7 76 Securities due to an increase in expected cash flows — — 11 Balance as of end of period $ (19 ) $ (19 ) $ (25 ) [1] These additions are included in the net OTTI losses recognized in earnings in the Consolidated Statements of Operations. |
Schedule of Available-for-sale Securities | AFS Securities by Type December 31, 2019 December 31, 2018 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Non- Credit OTTI [1] Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Non- Credit OTTI [1] ABS $ 1,461 $ 18 $ (3 ) $ 1,476 $ — $ 1,272 $ 5 $ (1 ) $ 1,276 $ — CLOs 2,186 5 (8 ) 2,183 — 1,455 2 (20 ) 1,437 — CMBS 4,210 141 (13 ) 4,338 (4 ) 3,581 35 (64 ) 3,552 (5 ) Corporate 16,435 986 (25 ) 17,396 — 13,696 148 (446 ) 13,398 — Foreign govt./govt. agencies 1,057 66 — 1,123 — 866 7 (26 ) 847 — Municipal 8,763 737 (2 ) 9,498 — 9,972 421 (47 ) 10,346 — RMBS 4,775 97 (3 ) 4,869 — 3,270 44 (35 ) 3,279 — U.S. Treasuries 1,191 75 (1 ) 1,265 — 1,491 41 (15 ) 1,517 — Total fixed maturities, AFS 40,078 2,125 (55 ) 42,148 (4 ) 35,603 703 (654 ) 35,652 (5 ) [1] Represents the amount of cumulative non-credit OTTI losses recognized in OCI on securities that also had credit impairments. These losses are included in gross unrealized losses as of December 31, 2019 and 2018 . |
Investments by Contractual Maturity Year | Fixed maturities, AFS, by Contractual Maturity Year December 31, 2019 December 31, 2018 Amortized Cost Fair Value Amortized Cost Fair Value One year or less $ 1,082 $ 1,090 $ 999 $ 1,002 Over one year through five years 7,200 7,401 5,786 5,791 Over five years through ten years 7,395 7,803 6,611 6,495 Over ten years 11,769 12,988 12,629 12,820 Subtotal 27,446 29,282 26,025 26,108 Mortgage-backed and asset-backed securities 12,632 12,866 9,578 9,544 Total fixed maturities, AFS $ 40,078 $ 42,148 $ 35,603 $ 35,652 |
Unrealized Loss on Investments | Unrealized Loss Aging for AFS Securities by Type and Length of Time as of December 31, 2019 Less Than 12 Months 12 Months or More Total Amortized Cost Fair Value Unrealized Losses Amortized Cost Fair Value Unrealized Losses Amortized Cost Fair Value Unrealized Losses ABS $ 401 $ 398 $ (3 ) $ 9 $ 9 $ — $ 410 $ 407 $ (3 ) CLOs 681 679 (2 ) 929 923 (6 ) 1,610 1,602 (8 ) CMBS 545 538 (7 ) 26 20 (6 ) 571 558 (13 ) Corporate 798 789 (9 ) 344 328 (16 ) 1,142 1,117 (25 ) Foreign govt./govt. agencies 101 101 — 29 29 — 130 130 — Municipal 224 222 (2 ) — — — 224 222 (2 ) RMBS 617 614 (3 ) 68 68 — 685 682 (3 ) U.S. Treasuries 88 88 — 35 34 (1 ) 123 122 (1 ) Total fixed maturities, AFS in an unrealized loss position $ 3,455 $ 3,429 $ (26 ) $ 1,440 $ 1,411 $ (29 ) $ 4,895 $ 4,840 $ (55 ) Unrealized Loss Aging for AFS Securities by Type and Length of Time as of December 31, 2018 Less Than 12 Months 12 Months or More Total Amortized Cost Fair Value Unrealized Losses Amortized Cost Fair Value Unrealized Losses Amortized Cost Fair Value Unrealized Losses ABS $ 566 $ 566 $ — $ 113 $ 112 $ (1 ) $ 679 $ 678 $ (1 ) CLOs 1,358 1,338 (20 ) 7 7 — 1,365 1,345 (20 ) CMBS 896 882 (14 ) 1,129 1,079 (50 ) 2,025 1,961 (64 ) Corporate 7,174 6,903 (271 ) 2,541 2,366 (175 ) 9,715 9,269 (446 ) Foreign govt./govt. agencies 407 391 (16 ) 203 193 (10 ) 610 584 (26 ) Municipal 1,643 1,613 (30 ) 292 275 (17 ) 1,935 1,888 (47 ) RMBS 1,344 1,329 (15 ) 648 628 (20 ) 1,992 1,957 (35 ) U.S. Treasuries 497 492 (5 ) 339 329 (10 ) 836 821 (15 ) Total fixed maturities, AFS in an unrealized loss position 13,885 13,514 (371 ) 5,272 4,989 (283 ) 19,157 18,503 (654 ) |
Valuation Allowance Activity | Valuation Allowance Activity For the years ended December 31, 2019 2018 2017 Balance as of January 1 $ (1 ) $ (1 ) $ — Reversals/(Additions) 1 — (1 ) Deductions — — — Balance as of December 31 $ — $ (1 ) $ (1 ) |
Loans Credit Quality | Mortgage Loans Credit Quality December 31, 2019 December 31, 2018 Loan-to-value Carrying Value Avg. Debt-Service Coverage Ratio Carrying Value Avg. Debt-Service Coverage Ratio 65% - 80% 376 1.53x 386 1.60x Less than 65% 3,839 2.56x 3,318 2.59x Total mortgage loans $ 4,215 2.46x $ 3,704 2.49x Mortgage Loans by Region December 31, 2019 December 31, 2018 Carrying Value Percent of Total Carrying Value Percent of Total East North Central $ 270 6.4 % $ 250 6.8 % Middle Atlantic 319 7.5 % 270 7.3 % Mountain 109 2.6 % 30 0.8 % New England 344 8.2 % 330 8.9 % Pacific 906 21.5 % 917 24.8 % South Atlantic 944 22.4 % 712 19.2 % West North Central 46 1.1 % 148 4.0 % West South Central 439 10.4 % 420 11.3 % Other [1] 838 19.9 % 627 16.9 % Total mortgage loans $ 4,215 100.0 % $ 3,704 100.0 % [1] Primarily represents loans collateralized by multiple properties in various regions. Mortgage Loans by Property Type December 31, 2019 December 31, 2018 Carrying Value Percent of Total Carrying Value Percent of Total Commercial Industrial 1,167 27.7 % 1,108 29.9 % Multifamily 1,313 31.2 % 1,138 30.7 % Office 723 17.2 % 708 19.1 % Retail 735 17.4 % 392 10.6 % Single Family 137 3.2 % 82 2.2 % Other 140 3.3 % 276 7.5 % Total mortgage loans $ 4,215 100.0 % $ 3,704 100.0 % |
Schedule of Securities Financing Transactions [Table Text Block] | Securities Lending and Repurchase Agreements December 31, 2019 December 31, 2018 Fair Value Fair Value Securities Lending Transactions: Gross amount of securities on loan $ 606 $ 820 Gross amount of associated liability for collateral received [1] $ 621 $ 840 Repurchase agreements: Gross amount of recognized liabilities for repurchase agreements $ — $ 72 Gross amount of collateral pledged related to repurchase agreements [2] $ — $ 73 Gross amount of recognized receivables for reverse repurchase agreements $ 15 $ 64 [1] Cash collateral received is reinvested in fixed maturities, AFS and short term investments which are included in the Consolidated Balance Sheets. Amount includes additional securities collateral received of $34 and $3 which are excluded from the Company's Consolidated Balance Sheets as of December 31, 2019 and 2018 , respectively. [2] Collateral pledged is included within fixed maturities, AFS and short term investments in the Company's Consolidated Balance Sheets. |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Balance Sheet Presentation | Derivative Balance Sheet Presentation Net Derivatives Asset Derivatives Liability Derivatives Notional Amount Fair Value Fair Value Fair Value Hedge Designation/ Derivative Type Dec 31, 2019 Dec 31, 2018 Dec 31, 2019 Dec 31, 2018 Dec 31, 2019 Dec 31, 2018 Dec 31, 2019 Dec 31, 2018 Cash flow hedges Interest rate swaps $ 2,040 $ 2,040 $ — $ 1 $ 1 $ 2 $ (1 ) $ (1 ) Foreign currency swaps 270 153 (1 ) (6 ) 3 2 (4 ) (8 ) Total cash flow hedges 2,310 2,193 (1 ) (5 ) 4 4 (5 ) (9 ) Non-qualifying strategies Interest rate contracts Interest rate swaps and futures 9,338 8,451 (59 ) (62 ) 3 8 (62 ) (70 ) Foreign exchange contracts Foreign currency swaps and forwards 464 287 (1 ) (1 ) — — (1 ) (1 ) Credit contracts Credit derivatives that purchase credit protection 124 6 (3 ) — — — (3 ) — Credit derivatives that assume credit risk [1] 500 1,102 13 3 13 8 — (5 ) Credit derivatives in offsetting positions 29 41 — — 5 6 (5 ) (6 ) Equity contracts Equity index swaps and options 941 211 (15 ) 4 15 5 (30 ) (1 ) Total non-qualifying strategies 11,396 10,098 (65 ) (56 ) 36 27 (101 ) (83 ) Total cash flow hedges and non-qualifying strategies $ 13,706 $ 12,291 $ (66 ) $ (61 ) $ 40 $ 31 $ (106 ) $ (92 ) Balance Sheet Location Fixed maturities, available-for-sale $ 244 $ 153 $ — $ — $ — $ — $ — $ — Other investments 1,277 9,864 12 7 13 23 (1 ) (16 ) Other liabilities 12,185 2,274 (78 ) (68 ) 27 8 (105 ) (76 ) Total derivatives $ 13,706 $ 12,291 $ (66 ) $ (61 ) $ 40 $ 31 $ (106 ) $ (92 ) [1] The derivative instruments related to this strategy are held for other investment purposes. |
Offsetting Liabilities | Offsetting Derivative Assets and Liabilities (i) (ii) (iii) = (i) - (ii) (iv) (v) = (iii) - (iv) Net Amounts Presented in the Statement of Financial Position Collateral Disallowed for Offset in the Statement of Financial Position Gross Amounts of Recognized Assets (Liabilities) Gross Amounts Offset in the Statement of Financial Position Derivative Assets [1] (Liabilities) [2] Accrued Interest and Cash Collateral (Received) [3] Pledged [2] Financial Collateral (Received) Pledged [4] Net Amount As of December 31, 2019 Other investments $ 40 $ 37 $ 12 $ (9 ) $ 1 $ 2 Other liabilities $ (106 ) $ (23 ) $ (78 ) $ (5 ) $ (73 ) $ (10 ) As of December 31, 2018 Other investments $ 31 $ 26 $ 7 $ (2 ) $ 2 $ 3 Other liabilities $ (92 ) $ (20 ) $ (68 ) $ (4 ) $ (65 ) $ (7 ) [1] Included in other investments in the Company's Consolidated Balance Sheets. [2] Included in other liabilities in the Company's Consolidated Balance Sheets and is limited to the net derivative payable associated with each counterparty. [3] Included in other investments in the Company's Consolidated Balance Sheets and is limited to the net derivative receivable associated with each counterparty. [4] Excludes collateral associated with exchange-traded derivative instruments. |
Derivatives in Cash Flow Hedging Relationships | Gain (Loss) Recognized in OCI Year Ended December 31, 2019 2018 2017 Interest rate swaps $ 18 $ 5 $ 8 Foreign currency swaps 8 7 (14 ) Total $ 26 $ 12 $ (6 ) Gain (Loss) Reclassified from AOCI into Income Year Ended December 31, 2019 2018 2017 Net Realized Capital Gain/(Loss) Net Investment Income Interest Expense Net Realized Capital Gain/(Loss) Net Investment Income Interest Expense Net Realized Capital Gain/(Loss) Net Investment Income Interest Expense Interest rate swaps $ 2 $ 4 $ 1 $ 6 $ 30 $ — $ 5 $ 37 $ — Foreign currency swaps — 3 — — — — — — — Total $ 2 $ 7 $ 1 $ 6 $ 30 $ — $ 5 $ 37 $ — Total amounts presented on the Consolidated Statement of Operations $ 395 $ 1,951 $ 259 $ (112 ) $ 1,780 $ 298 $ 165 $ 1,603 $ 316 |
Non-Qualifying Strategies Recognized within Net Realized Capital Gains (Losses) | Non-Qualifying Strategies Recognized within Net Realized Capital Gains (Losses) For the Year Ended December 31, 2019 2018 2017 Interest rate contracts Interest rate swaps, swaptions and futures (35 ) (3 ) (5 ) Credit contracts Credit derivatives that purchase credit protection (5 ) — 28 Credit derivatives that assume credit risk 32 (14 ) (7 ) Equity contracts Equity options (17 ) 2 (7 ) Foreign exchange contracts Foreign currency swaps and forwards 1 3 (14 ) Other Contingent capital facility put option — — (1 ) Total [1] $ (24 ) $ (12 ) $ (6 ) [1] Excludes investments that contain an embedded credit derivative for which the Company has elected the fair value option. For further discussion, see the Fair Value Option section in Note 5 - Fair Value Measurements of Notes to Consolidated Financial Statements. |
Credit Derivatives by Type | Credit Risk Assumed Derivatives by Type Underlying Referenced Credit Obligation(s) [1] Notional Amount [2] Fair Value Weighted Average Years to Maturity Type Average Credit Rating Offsetting Notional Amount [3] Offsetting Fair Value [3] As of December 31, 2019 Single name credit default swaps Investment grade risk exposure $ 100 $ 3 5 years Corporate Credit A- $ — $ — Basket credit default swaps [4] Investment grade risk exposure 400 10 5 years Corporate Credit BBB+ — — Investment grade risk exposure 1 — Less than 1 year CMBS Credit A 1 — Below investment grade risk exposure 14 (5 ) Less than 1 year CMBS Credit CCC- 14 5 Total [5] $ 515 $ 8 $ 15 $ 5 As of December 31, 2018 Single name credit default swaps Investment grade risk exposure $ 169 $ 2 4 years Corporate Credit/ A $ — $ — Basket credit default swaps [4] Investment grade risk exposure 799 (1 ) 6 years Corporate Credit BBB+ — — Below investment grade risk exposure 125 2 5 years Corporate Credit B+ — — Investment grade risk exposure 11 — 5 years CMBS Credit A- 2 — Below investment grade risk exposure 19 (6 ) Less than 1 year CMBS Credit CCC 19 6 Total [5] $ 1,123 $ (3 ) $ 21 $ 6 [1] The average credit ratings are based on availability and are generally the midpoint of the available ratings among Moody’s, S&P, and Fitch. If no rating is available from a rating agency, then an internally developed rating is used. [2] Notional amount is equal to the maximum potential future loss amount. These derivatives are governed by agreements and applicable law which include collateral posting requirements. There is no additional specific collateral related to these contracts or recourse provisions included in the contracts to offset losses. [3] The Company has entered into offsetting credit default swaps to terminate certain existing credit default swaps, thereby offsetting the future changes in value of, or losses paid related to, the original swap. [4] Comprised of swaps of standard market indices of diversified portfolios of corporate and CMBS issuers referenced through credit default swaps. These swaps are subsequently valued based upon the observable standard market index. [5] Excludes investments that contain an embedded credit derivative for which the Company has elected the fair value option. For further discussion, see the Fair Value Option section in Note 5 - Fair Value Measurements . of Notes to Consolidated Financial Statements. |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Property and Casualty Insurance and Group Benefits Revenue | Reinsurance Recoverables As of December 31, 2019 December 31, 2018 Property and Casualty Insurance Products Paid loss and loss adjustment expenses $ 249 $ 127 Unpaid loss and loss adjustment expenses 4,819 3,773 Gross reinsurance recoverables 5,068 3,900 Allowance for uncollectible reinsurance (114 ) (126 ) Net P&C reinsurance recoverables 4,954 3,774 Group Benefits net reinsurance recoverables [1] 253 251 Recoverable related to reserves in Corporate [1] 320 332 Reinsurance recoverables, net $ 5,527 $ 4,357 [1] No allowance for uncollectible reinsurance was required as of December 31, 2019 and 2018 . Insurance Revenues Property and Casualty Insurance Revenue For the years ended December 31, Premiums Written 2019 2018 2017 Direct $ 12,190 $ 10,784 $ 10,865 Assumed 371 217 223 Ceded (978 ) (593 ) (571 ) Net $ 11,583 $ 10,408 $ 10,517 Premiums Earned Direct $ 12,010 $ 10,824 $ 10,923 Assumed 416 221 232 Ceded (936 ) (599 ) (600 ) Net $ 11,490 $ 10,446 $ 10,555 Group Benefits Revenue For the years ended December 31, 2019 2018 2017 Gross earned premiums, fees and other considerations $ 4,122 $ 3,615 $ 3,281 Reinsurance assumed 1,572 2,044 446 Reinsurance ceded (91 ) (61 ) (50 ) Net earned premiums, fees and other considerations $ 5,603 $ 5,598 $ 3,677 |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Changes in the DAC Balance | Changes in DAC For the years ended December 31, 2019 2018 2017 Balance, beginning of period $ 670 $ 650 $ 645 Deferred costs 1,635 1,404 1,377 Amortization — DAC (1,622 ) (1,384 ) (1,372 ) Add back amortization of value of business acquired [1] 102 — — Balance, end of period $ 785 $ 670 $ 650 |
Goodwill & Other Intangible A_2
Goodwill & Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill Carrying Value [Table Text Block] | Goodwill Carrying Value as of December 31, 2019 Commercial Lines Personal Lines Hartford Funds Group Benefits Corporate [1] Total Balance at December 31, 2017 $ 38 $ 119 $ 180 $ 723 $ 230 $ 1,290 Goodwill related to acquisitions — — — — — — Balance at December 31, 2018 $ 38 $ 119 $ 180 $ 723 $ 230 $ 1,290 Goodwill related to acquisitions [2] 623 — — — — 623 Balance at December 31, 2019 $ 661 $ 119 $ 180 $ 723 $ 230 $ 1,913 [1] The Corporate category includes goodwill that was acquired at a holding company level and not pushed down to a subsidiary within a reportable segment. Carrying value of goodwill within Corporate as of December 31, 2019, 2018, and 2017 includes $138 and $92 for the Group Benefits and Hartford Funds reporting units, respectively. [2] For further discussion on goodwill related to the acquisition of Navigators Group, refer to Note 2 - Business Acquisitions of Notes to Consolidated Financial Statements. |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Other Intangible Assets As of December 31, 2019 As of December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized Intangible Assets: Value of in-force contracts [1] $ 203 $ (125 ) $ 78 $ 23 $ (23 ) $ — Customer relationships [2] 636 (92 ) 544 636 (49 ) 587 Marketing agreement with Aetna 16 (2 ) 14 16 (1 ) 15 Distribution Agreement 79 (61 ) 18 79 (56 ) 23 Distribution and Agency relationships & Other [3] [4] 340 (19 ) 321 21 (3 ) 18 Total Finite Life Intangibles 1,274 (299 ) 975 775 (132 ) 643 Total Indefinite Life Intangible Assets [5] 95 — 95 14 — 14 Total Other Intangible Assets $ 1,369 $ (299 ) $ 1,070 $ 789 $ (132 ) $ 657 [1] On May 23, 2019, the Company acquired Navigators Group and recorded a value of in-force-contracts intangible asset of $180 which will be amortized over 3 years . For further discussion on the value of in-force-contracts related to the acquisition of Navigators Group, refer to Note 2 - Business Acquisitions of Notes to Consolidated Financial Statements. [2] On February 16, 2018, The Company entered into a renewal rights agreement with Farmers Exchanges of the Farmers Group of Companies to acquire its Foremost-branded small commercial business sold through independent agents. In connection with the renewal rights agreement, the Company recorded a customer relationships intangible asset of $ 46 which will be amortized over 10 years . [3] On December 1, 2018, the Company acquired Y-Risk LLC and recorded an agency relationships intangible asset of $ 12 which will be amortized over 15 years . [4] On May 23, 2019, the Company acquired Navigators Group and recorded other intangible assets of $302 for distribution relationships and $17 for the trade name. The distribution relationships and trade name will be amortized over 15 years and 10 years , respectively. For further discussion on the value of distribution relationships and trade name related to the acquisition of Navigators Group, refer to Note 2 - Business Acquisitions of Notes to Consolidated Financial Statements. [5] On May 23, 2019, the Company acquired Navigators Group and recorded an indefinite life intangible asset of $66 related to the capacity to write business through its Lloyd's Syndicate and recorded an indefinite life intangible of $15 for licenses . For further discussion on the indefinite life intangible assets related to the acquisition of Navigators Group, refer to Note 2 - Business Acquisitions of Notes to Consolidated Financial Statements. |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Expected Pre-tax Amortization Expense [1] for Acquired Intangibles as of December 31, 2019 Value of In-force Contracts Other Intangible Assets 2020 $ 47 $ 74 2021 $ 21 $ 74 2022 $ 10 $ 74 2023 $ — $ 74 2024 $ — $ 74 [1] In the Consolidated Statements of Operations, the amortization of value of in-force contracts is reported in amortization of deferred policy acquisition costs and the amortization of other intangible assets is reported in amortization of other intangible assets. |
Reserve for Unpaid Losses and_2
Reserve for Unpaid Losses and Loss Adjustment Expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Activity in Liability [Abstract] | |
Liabilities for Unpaid Losses and Loss Adjustment Expenses | (Favorable) Unfavorable Prior Accident Year Development For the years ended December 31, 2019 2018 2017 Workers’ compensation $ (120 ) $ (164 ) $ (79 ) Workers’ compensation discount accretion 33 40 28 General liability 61 52 11 Marine 8 — — Package business (47 ) (26 ) (25 ) Commercial property (11 ) (12 ) (8 ) Professional liability 29 (12 ) 1 Bond (3 ) 2 32 Assumed Reinsurance 3 — — Automobile liability - Commercial Lines 27 (15 ) 17 Automobile liability - Personal Lines (38 ) (18 ) — Homeowners 3 (25 ) (14 ) Net asbestos reserves — — — Net environmental reserves — — — Catastrophes (42 ) (49 ) (16 ) Uncollectible reinsurance (30 ) 22 (15 ) Other reserve re-estimates, net 46 38 27 Total prior accident year development, including full benefit for the ADC cession (81 ) (167 ) (41 ) Change in deferred gain on retroactive reinsurance included in other liabilities 16 — — Total prior accident year development $ (65 ) $ (167 ) $ (41 ) Rollforward of Liabilities for Unpaid Losses and Loss Adjustment Expenses For the years ended December 31, 2019 2018 2017 Beginning liabilities for unpaid losses and loss adjustment expenses, gross $ 24,584 $ 23,775 $ 22,545 Reinsurance and other recoverables 4,232 3,957 3,488 Beginning liabilities for unpaid losses and loss adjustment expenses, net 20,352 19,818 19,057 Navigators Group acquisition 2,001 — — Provision for unpaid losses and loss adjustment expenses Current accident year 7,463 7,107 7,381 Prior accident year development [1] (65 ) (167 ) (41 ) Total provision for unpaid losses and loss adjustment expenses 7,398 6,940 7,340 Change in deferred gain on retroactive reinsurance included in other liabilities [1] (16 ) — — Payments Current accident year (2,374 ) (2,452 ) (2,751 ) Prior accident years (4,374 ) (3,954 ) (3,828 ) Total payments (6,748 ) (6,406 ) (6,579 ) Foreign currency adjustment (1 ) — — Ending liabilities for unpaid losses and loss adjustment expenses, net 22,986 20,352 19,818 Reinsurance and other recoverables 5,275 4,232 3,957 Ending liabilities for unpaid losses and loss adjustment expenses, gross $ 28,261 $ 24,584 $ 23,775 Rollforward of Liabilities for Unpaid Losses and Loss Adjustment Expenses For the years ended December 31, 2019 2018 2017 Beginning liabilities for unpaid losses and loss adjustment expenses, gross $ 8,445 $ 8,512 $ 5,772 Reinsurance recoverables 239 209 208 Beginning liabilities for unpaid losses and loss adjustment expenses, net 8,206 8,303 5,564 Aetna U.S. group life and disability business acquisition [1] — 42 2,833 Provision for unpaid losses and loss adjustment expenses Current incurral year 4,385 4,470 2,868 Prior year's discount accretion 219 227 202 Prior incurral year development [2] (410 ) (324 ) (185 ) Total provision for unpaid losses and loss adjustment expenses [3] 4,194 4,373 2,885 Payments Current incurral year (2,277 ) (2,377 ) (1,528 ) Prior incurral years (2,114 ) (2,135 ) (1,451 ) Total payments (4,391 ) (4,512 ) (2,979 ) Ending liabilities for unpaid losses and loss adjustment expenses, net 8,009 8,206 8,303 Reinsurance recoverables 247 239 209 Ending liabilities for unpaid losses and loss adjustment expenses, gross $ 8,256 $ 8,445 $ 8,512 [1] Amount recognized in 2018 represents an adjustment to Aetna U.S. group life and disability business reserves, net of reinsurance as of the acquisition date, upon finalization of the opening balance sheet. [2] Prior incurral year development represents the change in estimated ultimate incurred losses and loss adjustment expenses for prior incurral years on a discounted basis. [3] Includes unallocated loss adjustment expenses of $ 178 , $ 194 and $ 111 for the years ended December 31, 2019 , 2018 and 2017 , respectively, that are recorded in insurance operating costs and other expenses in the Consolidated Statements of Operations. |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance | Property and Casualty Insurance Products Reserves, Net of Reinsurance, that are Discounted For the years ended December 31, 2019 2018 2017 Liability for unpaid losses and loss adjustment expenses, at undiscounted amounts $ 1,331 $ 1,331 $ 1,387 Amount of discount 388 388 410 Carrying value of liability for unpaid losses and loss adjustment expenses $ 943 $ 943 $ 977 Discount accretion included in losses and loss adjustment expenses $ 33 $ 40 $ 30 Weighted average discount rate 2.91 % 2.98 % 3.06 % Range of discount rates 1.76 % - 14.03 % 1.77 % - 14.15 % 1.77 % - 14.15 % Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Reserve Line 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year 10th Year Workers' compensation 15.6 % 19.3 % 12.7 % 8.7 % 5.9 % 4.3 % 2.9 % 2.6 % 1.8 % 1.6 % General liability 2.9 % 8.4 % 15.0 % 18.5 % 15.8 % 10.5 % 7.5 % 4.4 % 2.5 % 1.9 % Marine 26.7 % 32.3 % 17.9 % 8.8 % 7.1 % 2.3 % 2.6 % 2.5 % Package business 37.4 % 21.6 % 10.4 % 8.7 % 5.8 % 3.3 % 2.2 % 1.0 % 0.6 % 0.3 % Commercial property 53.8 % 30.5 % 7.4 % 3.1 % 0.8 % 0.3 % 0.1 % (0.2 %) Commercial automobile liability 16.9 % 21.0 % 20.8 % 17.8 % 11.8 % 4.3 % 2.7 % 1.4 % 0.7 % 0.3 % Commercial automobile physical damage 89.1 % 7.8 % (0.4 )% Professional liability 5.4 % 18.8 % 17.5 % 14.0 % 11.1 % 5.7 % 2.7 % 1.0 % Bond 13.8 % 27.2 % 12.6 % 4.8 % 1.9 % 2.2 % 5.7 % 0.5 % 1.8 % (6.2 %) Assumed Reinsurance 37.7 % 39.0 % 7.4 % 4.7 % 8.8 % 2.3 % 0.9 % 0.7 % Personal automobile liability 36.3 % 33.1 % 15.6 % 7.6 % 3.2 % 1.1 % 0.5 % 0.2 % 0.1 % — % Personal automobile physical damage 96.3 % 3.0 % (0.3 %) Homeowners 69.6 % 21.5 % 3.3 % 1.2 % 0.6 % 0.3 % 0.1 % 0.1 % — % 0.1 % Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year Group long-term disability 7.4 % 24.8 % 15.5 % 8.6 % 6.3 % 5.4 % 4.6 % 3.9 % 3.4 % Group life and accident, excluding premium waiver 78.6 % 19.6 % 0.9 % Group Life, Disability and Accident Products Reserves, Net of Reinsurance, that are Discounted For the years ended December 31, 2019 2018 2017 Liability for unpaid losses and loss adjustment expenses, at undiscounted amounts $ 8,636 $ 8,957 $ 9,071 Amount of discount (1,401 ) (1,505 ) (1,536 ) Carrying value of liability for unpaid losses and loss adjustment expenses $ 7,235 $ 7,452 $ 7,535 Weighted average discount rate 3.4 % 3.4 % 3.5 % Range of discount rate 2.1 % - 8.0 % 2.1 % - 8.0 % 2.1 % - 8.0 % |
Reconciliation of Loss Development to Liability for Unpaid Losses and Loss Adjustment Expenses | Reconciliation of Loss Development to Liability for Unpaid Losses and Loss Adjustment Expenses As of December 31, 2019 Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Subtotal Reserve Line Cumulative Incurred for Accident Years Displayed in Triangles Cumulative Paid for Accident Years Displayed in Triangles Unpaid for Accident Years not Displayed in Triangles Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance Discount Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance Reinsurance and Other Recoverables Liability for Unpaid Losses and Loss Adjustment Expenses Workers' compensation $ 18,990 $ (10,991 ) $ 2,446 $ 345 $ (372 ) $ 10,418 $ 2,093 $ 12,511 General liability 5,711 (2,828 ) 471 140 — 3,494 630 4,124 Marine 1,226 (974 ) 19 8 — 279 135 414 Package business 6,817 (5,215 ) 49 91 — 1,742 33 1,775 Commercial property 2,939 (2,520 ) 29 13 — 461 162 623 Commercial automobile liability 3,698 (2,739 ) 11 22 — 992 73 1,065 Commercial automobile physical damage 206 (194 ) 3 — — 15 (1 ) 14 Professional liability 1,796 (863 ) 86 31 — 1,050 549 1,599 Bond 637 (353 ) 29 24 — 337 13 350 Assumed Reinsurance 1,005 (824 ) 4 5 — 190 25 215 Personal automobile liability 11,985 (10,518 ) 25 68 — 1,560 27 1,587 Personal automobile physical damage 1,531 (1,507 ) 6 3 — 33 — 33 Homeowners 7,443 (6,958 ) 4 38 — 527 41 568 Other ongoing business 231 — (16 ) 215 312 527 Asbestos and environmental [1] 1,147 — — 1,147 1,219 2,366 Other operations [1] 375 151 — 526 (36 ) 490 Total P&C $ 63,984 $ (46,484 ) $ 4,935 $ 939 $ (388 ) $ 22,986 $ 5,275 $ 28,261 [1] Asbestos and environmental and other operations include asbestos, environmental and other latent exposures not foreseen when coverages were written, including, but not limited to, potential liability for pharmaceutical products, silica, talcum powder, head injuries, lead paint, construction defects, molestation and other long-tail liabilities. These reserve lines do not have significant paid or incurred loss development for the most recent ten accident years and therefore do not have loss development displayed in triangles. Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Subtotal Reserve Line Cumulative Incurred for Incurral Years Displayed in Triangles Cumulative Paid for Incurral Years Displayed in Triangles Unpaid for Incurral Years not Displayed in Triangles Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance Discount Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance Reinsurance and Other Recoverables Liability for Unpaid Losses and Loss Adjustment Expenses Group long-term disability $ 13,157 $ (7,316 ) $ 1,874 $ 173 $ (1,272 ) $ 6,616 $ 236 $ 6,852 Group life and accident, excluding premium waiver 5,793 (5,332 ) 134 3 (18 ) 580 1 581 Group short-term disability 114 4 — 118 — 118 Group life premium waiver 758 10 (111 ) 657 2 659 Group supplemental health 38 — — 38 8 46 Total Group Benefits $ 18,950 $ (12,648 ) $ 2,918 $ 190 $ (1,401 ) $ 8,009 $ 247 $ 8,256 |
Losses and Allocated Loss Adjustments Expense, Net of Reinsurance | Workers' Compensation Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 IBNR Claims 2010 $ 1,560 $ 1,775 $ 1,814 $ 1,858 $ 1,857 $ 1,882 $ 1,881 $ 1,878 $ 1,892 $ 1,888 $ 221 156,802 2011 2,013 2,099 2,204 2,206 2,221 2,224 2,232 2,242 2,239 314 177,910 2012 2,185 2,207 2,207 2,181 2,168 2,169 2,154 2,146 350 171,341 2013 2,020 1,981 1,920 1,883 1,861 1,861 1,850 415 151,315 2014 1,869 1,838 1,789 1,761 1,713 1,692 477 126,104 2015 1,873 1,835 1,801 1,724 1,714 540 113,819 2016 1,772 1,772 1,780 1,767 665 111,763 2017 1,862 1,869 1,840 864 111,096 2018 1,916 1,917 1,039 116,915 2019 1,937 1,359 110,515 Total $ 18,990 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 $ 316 $ 709 $ 970 $ 1,154 $ 1,287 $ 1,374 $ 1,439 $ 1,489 $ 1,522 $ 1,553 2011 371 841 1,156 1,368 1,518 1,622 1,690 1,746 1,786 2012 359 809 1,106 1,313 1,436 1,529 1,587 1,644 2013 304 675 917 1,071 1,175 1,260 1,304 2014 275 598 811 960 1,041 1,099 2015 261 576 778 909 1,004 2016 255 579 779 908 2017 261 575 778 2018 283 624 2019 291 Total $ 10,991 General Liability Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 IBNR Claims 2010 $ 436 $ 445 $ 432 $ 437 $ 428 $ 431 $ 465 $ 467 $ 483 $ 482 $ 41 23,941 2011 431 420 408 405 404 416 417 426 420 48 22,310 2012 423 402 399 392 410 408 421 413 65 16,501 2013 455 442 456 484 488 502 505 77 13,643 2014 506 475 481 494 513 522 114 14,318 2015 556 560 554 594 633 141 15,088 2016 613 583 607 633 254 15,984 2017 626 614 613 359 15,039 2018 692 669 516 15,368 2019 821 744 11,628 Total $ 5,711 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 $ 20 $ 68 $ 149 $ 230 $ 284 $ 327 $ 387 $ 409 $ 418 $ 427 2011 15 61 123 200 255 303 330 348 362 2012 13 55 101 170 233 280 305 323 2013 13 53 141 233 320 372 398 2014 15 42 130 214 304 358 2015 10 55 156 278 409 2016 12 52 131 283 2017 15 67 156 2018 21 83 2019 29 Total $ 2,828 Marine Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 IBNR Claims 2012 $ 195 $ 219 $ 179 $ 168 $ 163 $ 163 $ 167 $ 163 $ — 6,766 2013 148 152 134 135 139 134 137 (2 ) 6,601 2014 163 159 157 164 163 168 (1 ) 7,093 2015 158 145 145 148 133 (8 ) 10,038 2016 139 142 137 147 (3 ) 12,959 2017 160 186 174 3 15,216 2018 144 160 5 13,130 2019 144 61 5,775 Total $ 1,226 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2012 $ 50 $ 101 $ 125 $ 139 $ 148 $ 152 $ 154 $ 158 2013 41 82 100 111 118 120 125 2014 40 80 116 130 150 156 2015 40 85 115 125 133 2016 35 80 106 122 2017 48 110 141 2018 37 104 2019 35 Total $ 974 Package Business Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 IBNR Claims 2010 $ 657 $ 662 $ 654 $ 652 $ 652 $ 651 $ 653 $ 651 $ 649 $ 647 $ 18 52,484 2011 810 792 790 800 808 814 813 812 807 26 61,045 2012 736 725 728 731 736 735 739 732 30 59,817 2013 579 565 573 585 586 592 586 32 43,556 2014 566 578 601 602 603 603 59 43,098 2015 582 588 585 583 588 69 41,965 2016 655 638 632 625 118 43,672 2017 695 702 692 192 45,836 2018 719 724 241 43,026 2019 813 392 36,824 Total $ 6,817 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 $ 270 $ 414 $ 487 $ 539 $ 570 $ 601 $ 613 $ 618 $ 625 $ 627 2011 377 555 621 684 727 748 762 772 774 2012 286 486 560 616 652 673 687 694 2013 225 339 414 467 504 522 541 2014 226 345 416 468 507 525 2015 212 332 383 445 486 2016 225 353 410 465 2017 235 372 447 2018 237 402 2019 254 Total $ 5,215 Commercial Property Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 IBNR Claims 2012 $ 369 $ 333 $ 334 $ 334 $ 336 $ 335 $ 334 $ 333 $ 1 26,786 2013 268 252 253 252 249 248 247 — 21,601 2014 293 281 282 280 279 281 — 21,017 2015 298 301 302 301 305 1 21,005 2016 405 419 399 406 1 23,710 2017 577 515 455 21 24,235 2018 450 436 38 21,460 2019 476 93 18,634 Total $ 2,939 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2012 $ 182 $ 296 $ 317 $ 326 $ 331 $ 331 $ 331 $ 330 2013 161 223 238 243 242 244 245 2014 170 250 270 279 279 279 2015 179 257 284 296 301 2016 215 342 378 395 2017 229 378 412 2018 188 344 2019 214 Total $ 2,520 Commercial Automobile Liability Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 IBNR Claims 2010 $ 290 $ 291 $ 309 $ 335 $ 338 $ 344 $ 344 $ 341 $ 340 $ 339 $ 3 38,158 2011 272 310 356 356 366 365 363 362 363 6 39,298 2012 311 377 391 402 395 389 387 388 6 36,043 2013 311 318 334 341 340 339 335 11 32,228 2014 309 317 331 337 341 334 14 29,597 2015 308 358 372 356 356 18 28,487 2016 385 393 390 391 44 29,036 2017 372 383 379 76 26,089 2018 349 396 153 24,016 2019 417 291 22,455 Total $ 3,698 Cumulative Paid Losses & Allocated Loss Adjustment Expense, Net of Reinsurance For the years ended December 31 (Unaudited) Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 $ 60 $ 132 $ 199 $ 266 $ 305 $ 315 $ 324 $ 330 $ 334 $ 335 2011 63 133 211 274 316 339 348 353 354 2012 65 143 234 307 346 359 372 376 2013 62 130 202 259 295 311 321 2014 59 131 197 252 299 309 2015 62 142 207 267 314 2016 65 147 232 303 2017 60 134 211 2018 62 153 2019 63 Total $ 2,739 Commercial Automobile Physical Damage Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2017 2018 2019 IBNR Claims 2017 $ 85 $ 81 $ 81 $ 3 24,325 2018 62 62 1 20,508 2019 63 2 18,626 Total $ 206 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2017 2018 2019 2017 $ 74 $ 79 $ 78 2018 54 60 2019 56 Total $ 194 Professional Liability Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Claims Made Year 2012 2013 2014 2015 2016 2017 2018 2019 IBNR Claims 2012 $ 242 $ 238 $ 238 $ 218 $ 221 $ 220 $ 219 $ 225 $ 19 7,025 2013 207 195 187 174 173 173 171 24 5,970 2014 187 183 181 177 179 182 26 6,705 2015 164 174 179 190 213 51 7,171 2016 183 176 203 196 66 8,288 2017 205 203 231 103 9,224 2018 247 280 155 9,517 2019 298 252 7,396 Total $ 1,796 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Claims Made Year 2012 2013 2014 2015 2016 2017 2018 2019 2012 $ 17 $ 67 $ 100 $ 139 $ 154 $ 168 $ 172 $ 175 2013 10 44 67 88 116 131 137 2014 7 38 74 107 130 135 2015 9 40 85 107 124 2016 8 51 88 111 2017 11 48 87 2018 15 73 2019 21 Total $ 863 Bond Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 IBNR Claims 2010 $ 72 $ 76 $ 82 $ 81 $ 75 $ 71 $ 72 $ 92 $ 73 $ 72 $ 6 2,674 2011 74 78 78 76 71 71 71 71 72 9 2,136 2012 71 70 61 55 49 49 45 48 13 1,723 2013 64 58 55 48 49 39 35 15 1,463 2014 71 67 66 67 59 59 12 1,383 2015 67 67 63 60 54 19 1,385 2016 61 61 61 56 32 1,324 2017 63 90 101 42 1,547 2018 68 68 49 1,383 2019 72 68 1,122 Total $ 637 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 $ 14 $ 46 $ 60 $ 60 $ 60 $ 65 $ 67 $ 67 $ 69 $ 64 2011 12 40 52 57 58 60 60 60 61 2012 12 25 26 24 26 26 34 35 2013 3 9 17 19 19 19 20 2014 18 31 40 43 43 45 2015 9 20 24 31 34 2016 2 12 15 20 2017 5 46 55 2018 6 16 2019 3 Total $ 353 Assumed Reinsurance Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 IBNR Claims 2012 $ 107 $ 99 $ 93 $ 88 $ 115 $ 120 $ 119 $ 121 $ — 1,424 2013 115 119 103 105 102 102 104 1 1,607 2014 119 142 122 118 115 116 1 1,654 2015 102 92 94 94 95 — 1,383 2016 88 91 98 100 3 1,434 2017 129 153 161 11 1,582 2018 128 127 1 1,322 2019 181 107 875 Total $ 1,005 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2012 $ 38 $ 77 $ 83 $ 85 $ 112 $ 118 $ 118 $ 119 2013 53 83 91 98 100 101 103 2014 66 119 106 109 112 113 2015 42 64 77 83 91 2016 36 66 84 90 2017 44 116 135 2018 25 111 2019 62 Total $ 824 Personal Automobile Liability Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 IBNR Claims 2010 $ 1,346 $ 1,321 $ 1,293 $ 1,287 $ 1,282 $ 1,275 $ 1,265 $ 1,265 $ 1,264 $ 1,265 $ 3 248,948 2011 1,181 1,170 1,180 1,173 1,166 1,154 1,154 1,153 1,153 4 221,890 2012 1,141 1,149 1,146 1,142 1,133 1,130 1,130 1,130 6 210,757 2013 1,131 1,145 1,144 1,153 1,152 1,153 1,157 8 205,475 2014 1,146 1,153 1,198 1,200 1,199 1,202 11 208,983 2015 1,195 1,340 1,338 1,330 1,331 21 216,827 2016 1,407 1,402 1,393 1,397 46 215,658 2017 1,277 1,275 1,228 109 186,993 2018 1,108 1,104 246 154,648 2019 1,018 461 131,577 Total $ 11,985 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 $ 496 $ 915 $ 1,108 $ 1,202 $ 1,239 $ 1,251 $ 1,256 $ 1,258 $ 1,260 $ 1,260 2011 447 826 1,006 1,088 1,126 1,140 1,145 1,146 1,146 2012 441 818 986 1,067 1,104 1,114 1,120 1,122 2013 442 816 1,002 1,091 1,121 1,135 1,142 2014 430 843 1,032 1,125 1,165 1,182 2015 475 935 1,142 1,243 1,292 2016 505 968 1,188 1,308 2017 441 836 1,033 2018 359 710 2019 323 Total $ 10,518 Personal Automobile Physical Damage Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2017 2018 2019 IBNR Claims 2017 $ 598 $ 588 $ 588 $ (1 ) 362,235 2018 509 498 7 305,031 2019 445 (11 ) 262,866 Total $ 1,531 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2017 2018 2019 2017 $ 574 $ 591 $ 589 2018 474 491 2019 427 Total $ 1,507 Homeowners Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 IBNR Claims 2010 $ 838 $ 850 $ 838 $ 840 $ 840 $ 840 $ 836 $ 834 $ 834 $ 834 $ (1 ) 161,597 2011 955 920 919 916 914 911 908 907 907 — 179,399 2012 774 741 741 741 739 738 738 738 1 142,845 2013 673 638 637 634 632 630 629 1 113,538 2014 710 707 702 700 698 698 (1 ) 121,902 2015 690 703 690 684 684 2 119,944 2016 669 673 663 658 4 119,646 2017 866 889 884 41 124,189 2018 903 910 60 101,985 2019 501 107 78,068 Total $ 7,443 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 $ 599 $ 789 $ 815 $ 825 $ 829 $ 832 $ 833 $ 833 $ 834 $ 835 2011 709 871 891 899 903 905 908 907 908 2012 547 696 719 727 731 734 735 736 2013 467 590 611 622 626 627 628 2014 526 663 684 691 695 697 2015 487 645 665 674 680 2016 481 621 640 649 2017 538 747 795 2018 484 712 2019 318 Total $ 6,958 Group Long-Term Disability Undiscounted Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Incurral Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 IBNR Reserves Claims Reported 2011 $ 1,917 $ 1,761 $ 1,660 $ 1,659 $ 1,669 $ 1,660 $ 1,649 $ 1,638 $ 1,631 $ — 39,246 2012 1,829 1,605 1,539 1,532 1,530 1,515 1,504 1,486 — 37,523 2013 1,660 1,479 1,429 1,429 1,416 1,413 1,399 1 31,946 2014 1,636 1,473 1,430 1,431 1,431 1,408 2 33,213 2015 1,595 1,442 1,422 1,420 1,401 3 33,820 2016 1,651 1,481 1,468 1,437 3 34,719 2017 1,597 1,413 1,358 8 31,865 2018 1,647 1,387 37 28,551 2019 1,650 852 17,753 Total $ 13,157 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Incurral Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2011 $ 118 $ 508 $ 743 $ 886 $ 996 $ 1,087 $ 1,167 $ 1,231 $ 1,286 2012 108 483 708 835 933 1,014 1,080 1,138 2013 102 443 664 791 881 954 1,016 2014 103 448 675 801 884 960 2015 108 460 687 806 891 2016 112 479 705 819 2017 109 452 658 2018 105 447 2019 101 Total $ 7,316 Group Life and Accident, excluding Premium Waiver Undiscounted Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Incurral Year 2017 2018 2019 IBNR Reserves Claims Reported 2017 $ 1,999 $ 1,953 $ 1,951 $ 4 45,139 2018 1,952 1,940 18 52,027 2019 1,902 373 45,825 Total $ 5,793 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Incurral Year 2017 2018 2019 2017 $ 1,551 $ 1,929 $ 1,945 2018 1,532 1,916 2019 1,471 Total $ 5,332 |
Reserve for Future Policy Ben_2
Reserve for Future Policy Benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Insurance Loss Reserves [Abstract] | |
Changes in Reserves for Future Policy Benefits | Changes in Reserves for Future Policy Benefits [1] Liability balance, as of January 1, 2019 $ 642 Incurred 86 Paid (102 ) Change in unrealized investment gains and losses 9 Liability balance, as of December 31, 2019 $ 635 Reinsurance recoverable asset, as of January 1, 2019 $ 27 Incurred 4 Paid — Reinsurance recoverable asset, as of December 31, 2019 $ 31 Liability balance, as of January 1, 2018 $ 713 Incurred 72 Paid (101 ) Change in unrealized investment gains and losses (42 ) Liability balance, as of December 31, 2018 $ 642 Reinsurance recoverable asset, as of January 1, 2018 $ 26 Incurred 1 Paid — Reinsurance recoverable asset, as of December 31, 2018 $ 27 [1] Reserves for future policy benefits includes paid-up life insurance and whole-life policies resulting from conversion from group life policies included within the Group Benefits segment and reserves for run-off structured settlement and terminal funding agreement liabilities which are in the Corporate category. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Short-term and Long-term Debt by Issuance As of December 31, 2019 2018 Revolving Credit Facilities $ — $ — Senior Notes and Debentures 6.0% Notes, due 2019 — 413 5.5% Notes, due 2020 500 500 5.125% Notes, due 2022 — 800 2.8% Notes, due 2029 600 — 5.95% Notes, due 2036 300 300 6.625% Notes, due 2040 295 295 6.1% Notes, due 2041 409 409 6.625% Notes, due 2042 178 178 4.4% Notes, due 2048 500 500 3.6% Notes, due 2049 800 — 4.3% Notes, due 2043 300 300 Junior Subordinated Debentures 7.875% Notes, due 2042 600 600 3 Month LIBOR + 2.125% Notes, due 2067 [1] 500 500 Total Notes and Debentures 4,982 4,795 Unamortized discount and debt issuance cost [2] (134 ) (117 ) Total Debt 4,848 4,678 Less: Current maturities 500 413 Long-Term Debt $ 4,348 $ 4,265 [1] In April 2017, the Company entered into an interest rate swap agreement expiring February 15, 2027 to effectively convert the variable interest payments for this debenture into fixed interest payments of approximately 4.39% . [2] This amount includes unamortized discount of $76 and $78 as of December 31, 2019 and 2018 , respectively, on the 6.1% Notes, due 2041. |
Schedule of Subordinated Borrowing | Junior Subordinated Debentures by Issuance as of December 31, 2019 Issue 7.875% Debentures 3 Month LIBOR + 2.125% Face Value $ 600 $ 500 Interest Rate [1] 7.875 % [2] N/A [3] Call Date April 15, 2022 February 15, 2022 [4] Interest Rate Subsequent to Call Date [2] 3 Month LIBOR + 5.596% 3 Month LIBOR + 2.125% [5] Final Maturity April 15, 2042 February 12, 2067 [1] Interest rate in effect until call date. [2] Payable quarterly in arrears. [3] Debentures were issued on call date. [4] The original call date was February 15, 2017. Replacement Capital Covenant associated with the debenture prohibits the Company from redeeming all or any portion of the notes on or prior to February 15, 2022, unless consent from covered bondholders is obtained. [5] In April 2017, the company entered into an interest rate swap agreement expiring February 15, 2027 to effectively convert the interest payments for the 3 Month LIBOR + 2.125% debenture into fixed interest payments of approximately 4.39% . |
Long-Term Debt Maturities | Long-term Debt Maturities (at par value) as of December 31, 2019 2020 - Current maturities $ 500 2021 $ — 2022 $ — 2023 $ — 2024 $ — Thereafter $ 4,482 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Statutory Accounting Practices Disclosure | U.S. Statutory Net Income (Loss) For the years ended December 31, 2019 2018 2017 Group Benefits Insurance Subsidiary $ 513 $ 390 $ (1,066 ) Property and Casualty Insurance Subsidiaries 1,391 1,114 950 Life and annuity business sold in May, 2018 — 196 369 Total $ 1,904 $ 1,700 $ 253 U.S. Statutory Capital As of December 31, 2019 2018 Group Benefits Insurance Subsidiary $ 2,644 $ 2,407 Property and Casualty Insurance Subsidiaries 10,208 7,435 Total $ 12,852 $ 9,842 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense (Benefit) | Income Tax Expense For the years ended December 31, 2019 2018 2017 Income Tax Expense (Benefit) Current - U.S. Federal $ 8 $ (18 ) $ 116 Foreign — — 1 Total current 8 (18 ) 117 Deferred - U.S. Federal 476 286 866 Foreign (9 ) — 2 Total deferred 467 286 868 Total income tax expense $ 475 $ 268 $ 985 |
Income Tax Rate Reconciliation | Income Tax Rate Reconciliation For the years ended December 31, 2019 2018 2017 Tax provision at U.S. federal statutory rate $ 538 $ 368 $ 253 Tax-exempt interest (56 ) (66 ) (123 ) Dividends received deduction (6 ) (2 ) (3 ) Executive Compensation 7 11 — Stock-based compensation (7 ) (5 ) (15 ) Tax Reform — (39 ) 877 Other (1 ) 1 (4 ) Provision for income taxes $ 475 $ 268 $ 985 |
Deferred Tax Assets (Liabilities) | Deferred Tax Assets (Liabilities) As of December 31, 2019 2018 Deferred Tax Assets Loss reserves and tax discount $ 214 $ 150 Unearned premium reserve and other underwriting related reserves 385 355 Investment-related items 130 183 Employee benefits 287 287 Net operating loss carryover 84 521 Other 27 1 Total Deferred Tax Assets 1,127 1,497 Valuation Allowance (4 ) — Deferred Tax Assets, Net of Valuation Allowance 1,123 1,497 Deferred Tax Liabilities Deferred acquisition costs (143 ) (104 ) Net unrealized gains on investments (458 ) (7 ) Other depreciable and amortizable assets (223 ) (135 ) Other — (3 ) Total Deferred Tax Liabilities (824 ) (249 ) Net Deferred Tax Asset $ 299 $ 1,248 |
Roll-forward of Unrecognized Tax Benefits | Rollforward of Unrecognized Tax Benefits For the years ended December 31, 2019 2018 2017 Balance, beginning of period $ 14 $ 9 $ 12 Gross increases - tax positions in prior period — 5 3 Gross decreases - tax positions in prior period — — — Gross decreases - Tax Reform — — (6 ) Balance, end of period $ 14 $ 14 $ 9 |
Changes in and Reclassificati_2
Changes in and Reclassifications From Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Changes in AOCI, Net of Tax | Changes in AOCI, Net of Tax for the Year Ended December 31, 2019 Changes in Net Unrealized Gain on Securities OTTI Losses in OCI Net Gain (Loss) on Cash Flow Hedging Instruments Foreign Currency Translation Adjustments Pension and Other Postretirement Plan Adjustments AOCI, net of tax Beginning balance $ 24 $ (4 ) $ (5 ) $ 30 $ (1,624 ) $ (1,579 ) OCI before reclassifications 1,797 1 22 4 (82 ) 1,742 Amounts reclassified from AOCI (137 ) — (8 ) — 34 (111 ) OCI, net of tax 1,660 1 14 4 (48 ) 1,631 Ending balance $ 1,684 $ (3 ) $ 9 $ 34 $ (1,672 ) $ 52 Changes in AOCI, Net of Tax for the Year Ended December 31, 2018 Changes in Net Unrealized Gain on Securities OTTI Losses in OCI Net Gain (Loss) on Cash Flow Hedging Instruments Foreign Currency Translation Adjustments Pension and Other Postretirement Plan Adjustments AOCI, net of tax Beginning balance $ 1,931 $ (3 ) $ 18 $ 34 $ (1,317 ) $ 663 Cumulative effect of accounting changes, net of tax [1] 273 — 2 4 (284 ) (5 ) Adjusted balance, beginning of period 2,204 (3 ) 20 38 (1,601 ) 658 OCI before reclassifications [2] (2,245 ) — 8 (8 ) (61 ) (2,306 ) Amounts reclassified from AOCI 65 (1 ) (33 ) — 38 69 OCI, net of tax (2,180 ) (1 ) (25 ) (8 ) (23 ) (2,237 ) Ending balance $ 24 $ (4 ) $ (5 ) $ 30 $ (1,624 ) $ (1,579 ) [1] Includes reclassification to retained earnings of $88 of stranded tax effects and $93 of net unrealized gains, net of tax, related to equity securities. Refer to Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements for further information. [2] The reduction in AOCI included the effect of removing $758 of AOCI from the balance sheet when the life and annuity business was sold in May 2018. Changes in AOCI, Net of Tax for the Year ended December 31, 2017 Changes in Net Unrealized Gain on Securities OTTI Losses in OCI Net Gain on Cash Flow Hedging Instruments Foreign Currency Translation Adjustments Pension and Other Postretirement Plan Adjustments AOCI, net of tax Beginning balance $ 1,276 $ (3 ) $ 76 $ 6 $ (1,692 ) $ (337 ) OCI before reclassifications 857 — (8 ) 28 (146 ) 731 Amounts reclassified from AOCI (202 ) — (50 ) — 521 269 OCI, net of tax 655 — (58 ) 28 375 1,000 Ending balance $ 1,931 $ (3 ) $ 18 $ 34 $ (1,317 ) $ 663 |
Reclassifications from AOCI | Reclassifications from AOCI AOCI Amount Reclassified from AOCI Affected Line Item in the Consolidated Statement of Operations For the year ended December 31, 2019 For the year ended December 31, 2018 For the year ended December 31, 2017 Net Unrealized Gain on Securities Available-for-sale securities $ 174 $ (80 ) $ 152 Net realized capital gains (losses) 174 (80 ) 152 Total before tax 37 (17 ) 53 Income tax expense — (2 ) 103 Income (loss) from discontinued operations, net of tax $ 137 $ (65 ) $ 202 Net income (loss) OTTI Losses in OCI Other than temporary impairments $ — $ — $ — Net realized capital gains (losses) — — — Total before tax — — — Income tax expense — 1 — Income (loss) from discontinued operations, net of tax — 1 — Net income (loss) Net Gains on Cash Flow Hedging Instruments Interest rate swaps $ 2 $ 6 $ 5 Net realized capital gains (losses) Interest rate swaps 4 30 37 Net investment income Interest rate swaps 1 — — Interest expense Foreign currency swaps 3 — — Net investment income 10 36 42 Total before tax 2 8 15 Income tax expense $ — $ 5 $ 23 Income (loss) from discontinued operations, net of tax $ 8 $ 33 $ 50 Net income (loss) Pension and Other Postretirement Plan Adjustments Amortization of prior service credit $ 7 $ 7 $ 7 Insurance operating costs and other expenses Amortization of actuarial loss (50 ) (55 ) (61 ) Insurance operating costs and other expenses Settlement loss — — (747 ) Insurance operating costs and other expenses (43 ) (48 ) (801 ) Total before tax (9 ) (10 ) (280 ) Income tax expense (34 ) (38 ) (521 ) Net income (loss) Total amounts reclassified from AOCI $ 111 $ (69 ) $ (269 ) Net income (loss) |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Weighted Average Assumptions Used in Calculating the Net Periodic Benefit Cost for Pension Plans and Other Postretirement Plans | Weighted Average Assumptions Used in Calculating the Benefit Obligations and the Net Amount Recognized Pension Benefits Other Postretirement Benefits For the years ended December 31, 2019 2018 2019 2018 Discount rate 3.33 % 4.35 % 3.15 % 4.23 % Weighted Average Assumptions Used in Calculating the Net Periodic Benefit Cost for Pension Plans For the years ended December 31, 2019 2018 2017 Discount rate 4.35 % 3.73 % 4.22 % Expected long-term rate of return on plan assets 6.45 % 6.60 % 6.60 % Weighted Average Assumptions Used in Calculating the Net Periodic Benefit Cost for Other Postretirement Plans For the years ended December 31, 2019 2018 2017 Discount rate 4.23 % 3.55 % 3.97 % Expected long-term rate of return on plan assets 6.00 % 6.60 % 6.60 % |
Assumed Health Care Cost Trend Rates | Assumed Health Care Cost Trend Rates For the years ended December 31, 2019 2018 2017 Pre-65 health care cost trend rate 7.00 % 6.50 % 6.75 % Post-65 health care cost trend rate N/A N/A N/A Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.50 % 4.50 % 4.50 % Year that the rate reaches the ultimate trend rate 2033 2028 2028 |
Change in Benefit Obligation | Change in Benefit Obligation Pension Benefits Other Postretirement Benefits For the years ended December 31, 2019 2018 2019 2018 Benefit obligation — beginning of year $ 4,000 $ 4,376 $ 220 $ 256 Service cost 4 4 — — Interest cost 159 142 8 7 Plan participants’ contributions — — 13 11 Actuarial loss (gain) 48 (6 ) 6 — Amendments — — (2 ) — Changes in assumptions 488 (329 ) 19 (11 ) Benefits and expenses paid (201 ) (186 ) (41 ) (45 ) Retiree drug subsidy — — — 2 Foreign exchange adjustment — (1 ) — — Benefit obligation — end of year $ 4,498 $ 4,000 $ 223 $ 220 |
Change in Plan Assets | Change in Plan Assets Pension Benefits Other Postretirement Benefits For the years ended December 31, 2019 2018 2019 2018 Fair value of plan assets — beginning of year $ 3,344 $ 3,592 $ 85 $ 114 Actual return on plan assets 701 (172 ) 12 (2 ) Employer contributions [1] 70 103 — — Benefits paid [2] (176 ) (161 ) (22 ) (27 ) Expenses paid (26 ) (17 ) — — Foreign exchange adjustment 1 (1 ) — — Fair value of plan assets — end of year $ 3,914 $ 3,344 $ 75 $ 85 Funded status — end of year $ (584 ) $ (656 ) $ (148 ) $ (135 ) [1] Employer contributions in 2019 and 2018 to the U.S. qualified defined benefit pension plan were discretionary, made in cash, and did not include contributions of the Company’s common stock. [2] Other postretirement benefits paid represent non-key employee postretirement medical benefits paid from the Company's prefunded trust fund. |
Defined Benefit Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets | Defined Benefit Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets As of December 31, 2019 2018 Projected benefit obligation $ 4,498 $ 4,000 Accumulated benefit obligation $ 4,498 $ 4,000 Fair value of plan assets $ 3,914 $ 3,344 |
Amounts Recognized in Consolidated Balance Sheets | Amounts Recognized in the Consolidated Balance Sheets Pension Benefits Other Postretirement Benefits As of December 31, 2019 2018 2019 2018 Other liabilities $ 584 $ 656 $ 148 $ 135 |
Net Periodic Cost (Benefit) | Net Periodic Cost (Benefit) Pension Benefits Other Postretirement Benefits For the years ended December 31, 2019 2018 2017 2019 2018 2017 Service cost $ 4 $ 4 $ 4 $ — $ — $ — Interest cost 159 142 170 8 7 8 Expected return on plan assets (226 ) (227 ) (267 ) (4 ) (7 ) (8 ) Amortization of prior service credit — — — (7 ) (7 ) (7 ) Amortization of actuarial loss 44 49 56 6 6 5 Settlements — — 750 — — — Net periodic cost (benefit) $ (19 ) $ (32 ) $ 713 $ 3 $ (1 ) $ (2 ) |
Amounts Recognized in Other Comprehensive Income (Loss) | Amounts Recognized in Other Comprehensive Income (Loss) Pension Benefits Other Postretirement Benefits For the years ended December 31, 2019 2018 2017 2019 2018 2017 Amortization of actuarial loss $ 44 $ 49 $ 56 $ 6 $ 6 $ 5 Settlement loss — — 750 — — — Amortization of prior service credit — — — (7 ) (6 ) (7 ) Net loss arising during the year (88 ) (91 ) (209 ) (18 ) 3 (12 ) Prior service cost (credit) — — — 2 — — Total $ (44 ) $ (42 ) $ 597 $ (17 ) $ 3 $ (14 ) |
Amounts in Accumulated Other Comprehensive Income (Loss), Before Tax, not yet Recognized as Components of Net Periodic Benefit Cost | Amounts in Accumulated Other Comprehensive Income (Loss), Before Tax, not yet Recognized as Components of Net Periodic Benefit Cost Pension Benefits Other Postretirement Benefits As of December 31, 2019 2018 2017 2019 2018 2017 Net loss $ (2,052 ) $ (2,008 ) $ (1,966 ) $ (132 ) $ (120 ) $ (129 ) Prior service credit — — — 67 72 78 Total $ (2,052 ) $ (2,008 ) $ (1,966 ) $ (65 ) $ (48 ) $ (51 ) |
Plan Assets | Target Asset Allocation Pension Plans Other Postretirement Plans Minimum Maximum Minimum Maximum Equity securities 5 % 35 % 15 % 45 % Fixed income securities 50 % 70 % 55 % 85 % Alternative assets — % 45 % — % — % Pension Plan Assets at Fair Value As of December 31, 2019 As of December 31, 2018 Asset Category Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Short-term investments: $ 34 $ 54 $ — $ 88 $ 50 $ 60 $ — $ 110 Fixed Income Securities: Corporate — 2,058 27 2,085 — 1,663 14 1,677 RMBS — 61 — 61 — 62 1 63 U.S. Treasuries — 101 — 101 10 120 — 130 Foreign government — 17 1 18 — 15 2 17 CMBS — 32 — 32 — 22 — 22 Other fixed income [1] — 96 1 97 — 52 1 53 Mortgage Loans — — 131 131 — — 133 133 Equity Securities: Domestic 429 1 — 430 376 3 — 379 International 261 — — 261 303 — — 303 Total pension plan assets at fair value, in the fair value hierarchy [2] $ 724 $ 2,420 $ 160 $ 3,304 $ 739 $ 1,997 $ 151 $ 2,887 Other Investments, at net asset value [3]: Private Market Alternatives 358 272 Hedge funds 212 186 Total pension plan assets at fair value. $ 724 $ 2,420 $ 160 $ 3,874 $ 739 $ 1,997 $ 151 $ 3,345 [1] Includes ABS, municipal bonds, and CDOs. [2] Excludes approximately $40 and $1 as of December 31, 2019 and 2018, respectively, of investment receivables net of investment payables that are excluded from this disclosure requirement because they are trade receivables in the ordinary course of business where the carrying amount approximates fair value. [3] Investments that are measured at net asset value per share or an equivalent and have not been classified in the fair value hierarchy. Other Postretirement Plan Assets at Fair Value As of December 31, 2019 As of December 31, 2018 Asset Category Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Short-term investments $ 3 $ — $ — $ 3 $ 4 $ — $ — $ 4 Fixed Income Securities: Corporate — 18 — 18 — 19 — 19 RMBS — 12 — 12 — 15 — 15 U.S. Treasuries — 20 — 20 6 13 — 19 Foreign government — — — — — 1 — 1 CMBS — 1 — 1 — 2 — 2 Other fixed income — 2 — 2 — 2 — 2 Equity Securities: Large-cap 19 — 19 23 — — 23 Total other postretirement plan assets at fair value [1] $ 22 $ 53 $ — $ 75 $ 33 $ 52 $ — $ 85 [1] Excludes approximately $1 of investment payables net of investment receivables as of December 31, 2018 that are excluded from this disclosure requirement because they are trade receivables in the ordinary course of business where the carrying amount approximates fair value. |
Pension Plan Assets Fair Value Measurements Using Significant Unobservable Inputs | Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Assets Corporate RMBS Foreign government Mortgage loans Other [1] Totals Fair Value as of January 1, 2019 $ 14 $ 1 $ 2 $ 133 $ 1 $ 151 Realized gains,net 3 — — — — 3 Changes in unrealized gains, net 2 — — 4 — 6 Purchases 7 — — — — 7 Settlements — — — — — — Sales (3 ) (1 ) (1 ) (6 ) — (11 ) Transfers into Level 3 4 — — — — 4 Transfers out of Level 3 — — — — — — Fair Value as of December 31, 2019 $ 27 $ — $ 1 $ 131 $ 1 $ 160 Fair Value as of January 1, 2018 $ 14 $ 2 $ 1 $ 140 $ 4 $ 161 Realized gains,net — — — — — — Changes in unrealized (losses) gains, net (1 ) — — (1 ) — (2 ) Purchases 5 — 1 — — 6 Settlements — — — — — — Sales (4 ) (1 ) — (6 ) (3 ) (14 ) Transfers into Level 3 — — — — — — Transfers out of Level 3 — — — — — — Fair Value as of December 31, 2018 $ 14 $ 1 $ 2 $ 133 $ 1 $ 151 [1] "Other" includes U.S. Treasuries, Other fixed income and CMBS investments. |
Amounts of Benefits Expected to be Paid over the next Ten Years from Pension and other Postretirement Plans | Amounts of Benefits Expected to be Paid over the next Ten Years from Pension and other Postretirement Plans as of December 31, 2019 Pension Benefits Other Postretirement Benefits 2020 $ 240 $ 25 2021 248 23 2022 254 20 2023 256 18 2024 258 16 2025 - 2029 1,291 63 Total $ 2,547 $ 165 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation Expense | Stock-Based Compensation Expense For the years ended December 31, 2019 2018 2017 Stock-based compensation plans expense $ 125 $ 130 $ 116 Income tax benefit (21 ) (27 ) (41 ) Excess tax benefit on awards vested, exercised and expired (6 ) (5 ) (15 ) Total stock-based compensation plans expense, net of tax [1] $ 98 $ 98 $ 60 |
Stock Compensation Valuation Assumptions | Stock Options Valuation Assumptions For the years ended December 31, 2019 2018 2017 Expected dividend yield 2.5% 1.8% 1.9% Expected annualized spot volatility 20.7 % - 36.7% 20.8 % - 36.5% 21.8 % - 37.9% Weighted average annualized volatility 29.3% 29.0% 29.5% Risk-free spot rate 2.4 % - 2.6% 1.5 % - 2.9% 0.4 % - 2.4% Expected term 5.9 years 5.7 years 5.0 years |
Non-qualified Stock Option Activity Under the Incentive Stock Plan | Non-qualified Stock Option Activity Under the Incentive Stock Plan Number of Options (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value For the year ended December 31, 2019 Outstanding at beginning of year 5,490 $ 40.84 Granted 1,089 $ 49.01 Exercised (733 ) $ 32.29 Forfeited — $ — Expired — $ — Outstanding at end of year 5,846 $ 43.43 6.3 years $ 101 Outstanding, fully vested and expected to vest 5,836 $ 64.77 6.3 years $ 98 Exercisable at end of year 3,921 $ 40.00 5.2 years $ 81 |
Assumptions | Assumptions for Total Shareholder Return Performance Shares For the years ended December 31, 2019 2018 2017 Volatility of common stock 19.4% 20.8% 20.3% Average volatility of peer companies 16.0 % - 27.0% 17.0 % - 25.0% 15.0 % - 25.0% Average correlation coefficient of peer companies 50.0% 54.0% 60.0% Risk-free spot rate 2.4% 2.4% 1.5% Term 3.0 years 3.0 years 3.0 years |
Non-vested Share Award Activity Under the Incentive Stock Plan | Non-vested Share Award Activity Under the Incentive Stock Plan Restricted Stock and Restricted Stock Units Performance Shares Number of Shares (in thousands) Weighted-Average Grant-Date Fair Value Number of Shares (in thousands) Weighted-Average Grant date Fair Value Non-vested shares For the year ended December 31, 2019 Non-vested at beginning of year 3,446 $ 48.43 735 $ 49.56 Granted 1,702 $ 50.49 422 $ 54.07 Performance based adjustment 391 $ 48.89 Vested (1,105 ) $ 42.73 (739 ) $ 48.89 Forfeited (435 ) $ 51.02 (49 ) $ 50.12 Non-vested at end of year 3,608 $ 50.85 760 $ 52.34 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease, Cost | Supplemental Operating Lease Information December 31, 2019 Operating cash flows for operating leases (for the twelve months ended) $ 50 Right-of-use asset obtained in exchange for new operating lease liabilities 42 Weighted-average remaining lease term in years for operating leases 6 years Weighted-average discount rate for operating leases 3.5 % Components of Lease Expense Year Ended December 31, 2019 Operating lease cost $ 49 Short-term lease cost 2 Variable lease cost 1 Sublease income (5 ) Total lease costs included in insurance operating costs and other expenses $ 47 |
Future Minimum Lease Payments | Maturities of Operating Lease Liabilities as of December 31, 2019 Operating Leases 2020 $ 51 2021 40 2022 34 2023 31 2024 21 Thereafter 46 Total lease payments 223 Less: Discount on lease payments to present value 22 Total lease liability $ 201 During 2019, The Hartford entered into 5, 10, and 12 year operating leases for office space, which will result in additional right-of-use asset and lease liabilities of approximately $54 . These leases commence in the first half of 2020. Future Minimum Lease Commitments as of December 31, 2018 Operating Leases 2019 $ 44 2020 36 2021 25 2022 18 2023 16 Thereafter 34 Total minimum lease payments [1] $ 173 [1] Excludes expected future minimum sublease income of approximately $2 , $1 , $1 , $0 , $0 and $0 in 2019, 2020, 2021, 2022, 2023 and thereafter respectively. |
Business Dispositions and Dis_2
Business Dispositions and Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | Major Classes of Assets and Liabilities Transferred to the Buyer in Connection with the Sale Carrying Value as of Closing December 31, 2017 [2] Assets Cash and investments $ 27,058 $ 30,135 Reinsurance recoverables 20,718 20,785 Loss accrual [1] (3,044 ) (3,257 ) Other assets 2,907 1,439 Separate account assets 110,773 115,834 Total assets held for sale $ 158,412 $ 164,936 Liabilities Reserve for future policy benefits and unpaid loss and loss adjustment expenses $ 14,308 $ 14,482 Other policyholder funds and benefits payable 28,680 29,228 Long-term debt 142 142 Other liabilities 2,222 2,756 Separate account liabilities 110,773 115,834 Total liabilities held for sale $ 156,125 $ 162,442 [1] Represents the estimated accrued loss on sale of the Company's life and annuity business. [2] Classified as assets and liabilities held for sale. Cash Flows from Discontinued Operations included in the Consolidated Statement of Cash Flows Year Ended December 31, 2018 2017 Net cash provided by operating activities from discontinued operations $ 603 $ 797 Net cash provided by investing activities from discontinued operations $ 463 $ 1,466 Net cash used in financing activities from discontinued operations [1] $ (737 ) $ (884 ) Cash paid for interest $ — $ 11 [1] Excludes return of capital to parent of $619 and $1,396 for 2018 and 2017 , respectively. Reconciliation of the Major Line Items Constituting Pretax Profit (Loss) of Discontinued Operations For the years ended December 31, 2018 2017 Revenues Earned premiums $ 39 $ 106 Fee income and other 382 912 Net investment income 519 1,289 Net realized capital losses (68 ) (53 ) Total revenues 872 2,254 Benefits, losses and expenses Benefits, losses and loss adjustment expenses 535 1,416 Amortization of DAC 58 45 Insurance operating costs and other expenses [1] 157 368 Total benefits, losses and expenses 750 1,829 Income before income taxes 122 425 Income tax expense 2 37 Income from operations of discontinued operations, net of tax 120 388 Net realized capital gain (loss) on disposal, net of tax 202 (3,257 ) Income (loss) from discontinued operations, net of tax $ 322 $ (2,869 ) [1]Corporate allocated overhead has been included in continuing operations. Major Classes of Assets and Liabilities Transferred by the Company to the Buyer in Connection with the Sale Carrying Value as of Closing Assets Cash and investments $ 669 Reinsurance recoverables and other 268 Total assets held for sale 937 Liabilities Reserve for future policy benefits and unpaid loss and loss adjustment expenses 653 Other liabilities 12 Total liabilities held for sale $ 665 |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | Current and Historical Quarterly Results of the Company Three months ended March 31, June 30, September 30, December 31, 2019 2018 2019 2018 2019 2018 2019 2018 Revenues $ 4,940 $ 4,691 $ 5,092 $ 4,789 $ 5,347 $ 4,842 $ 5,361 $ 4,633 Benefits, losses and expenses 4,165 4,172 4,636 4,252 4,694 4,312 4,685 4,466 Income from continuing operations, net of tax 630 428 372 434 535 427 548 196 Income from discontinued operations, net of tax — 169 — 148 — 5 — — Net income $ 630 $ 597 $ 372 $ 582 $ 535 $ 432 $ 548 $ 196 Less: Preferred stock dividends 5 — — — 11 — 5 6 Net income available to common stockholders $ 625 $ 597 $ 372 $ 582 $ 524 $ 432 $ 543 $ 190 Basic Income from continuing operations, net of tax, available to common stockholders per share [1] $ 1.74 $ 1.20 $ 1.03 $ 1.21 $ 1.45 $ 1.19 $ 1.51 $ 0.53 Income from discontinued operations, net of tax per share $ — $ 0.47 $ — $ 0.41 $ — $ 0.01 $ — $ — Net income per common share available to common stockholders $ 1.74 $ 1.67 $ 1.03 $ 1.62 $ 1.45 $ 1.20 $ 1.51 $ 0.53 Diluted Income from continuing operations, net of tax available to common stockholders per share [1] $ 1.71 $ 1.18 $ 1.02 $ 1.19 $ 1.43 $ 1.17 $ 1.49 $ 0.52 Income from discontinued operations, net of tax per share $ — $ 0.46 $ — $ 0.41 $ — $ 0.02 $ — $ — Net income per common share available to common stockholders $ 1.71 $ 1.64 $ 1.02 $ 1.60 $ 1.43 $ 1.19 $ 1.49 $ 0.52 [1] Income from continuing operations, net of tax, available to common stockholders includes the impact of preferred stock dividends. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Details) - USD ($) | Jan. 01, 2020 | May 23, 2019 | Jan. 01, 2019 | Jan. 01, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | $ (88,000,000) | |||||||
Equity securities, at fair value | 1,000,000,000 | $ 1,657,000,000 | $ 1,214,000,000 | |||||
Operating Lease, Liability | 201,000,000 | |||||||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 42,000,000 | |||||||
Reserve for future policy benefits | 635,000,000 | 642,000,000 | ||||||
Valuation allowances and reserves | 145,000,000 | 135,000,000 | ||||||
Participating dividends to policyholders | 30,000,000 | 23,000,000 | $ 35,000,000 | |||||
Accumulated depreciation | 1,900,000,000 | 1,600,000,000 | ||||||
Depreciation expense | $ 283,000,000 | $ 232,000,000 | $ 197,000,000 | |||||
Minimum | Other Intangible Assets | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Useful lives | 1 year | |||||||
Maximum | Other Intangible Assets | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Useful lives | 15 years | |||||||
Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Discontinued Operation, Amount of Adjustment to Prior Period Gain (Loss) on Disposal, Net of Tax | $ (193,000,000) | |||||||
Continuing Operations [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | (105,000,000) | |||||||
The Navigators Group, Inc. [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Business Acquisition, Share Price | $ 70 | |||||||
Business Combination, Consideration Transferred | $ 2,137,000,000 | |||||||
Property and Casualty Insurance Products | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Participating Insurance, Percentage of Premium Income | 9.00% | 10.00% | 10.00% | |||||
Accounting Standards Update 2016-01 [Member] | Equity securities | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Cumulative effect of accounting changes, net of tax | 83,000,000 | |||||||
Accounting Standards Update 2016-01 [Member] | Shadow DAC [Member] | Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Cumulative effect of accounting changes, net of tax | $ 10,000,000 | |||||||
Accounting Standards Update 2014-09 [Member] | Insurance Operating Costs | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income | $ 188 | |||||||
Accounting Standards Update 2017-12 [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Cumulative Effect on Retained Earnings, before Tax | $ 1,000,000 | |||||||
Accounting Standards Update 2016-02 [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Operating Lease, Liability | 160,000,000 | |||||||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 150,000,000 | |||||||
Incentive to Lessee | $ 10,000,000 | |||||||
Accounting Standards Update 2016-13 [Member] | Scenario, Forecast | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 18,000,000 | |||||||
Retroactive Reinsurance [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Paid loss and loss adjustment expenses | $ 747 | $ 523 | ||||||
Adverse Development Cover Navigators Group [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Deferred Revenue | 16,000,000 | 0 | ||||||
Deferred Revenue, Additions | $ 16,000,000 | $ 0 | $ 0 |
Business Acquisitions - Additio
Business Acquisitions - Additional Information (Details) - USD ($) | Dec. 31, 2019 | May 23, 2019 | Dec. 31, 2017 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 01, 2017 |
Business Acquisition [Line Items] | |||||||||||||||||
Goodwill | $ 1,913,000,000 | $ 1,290,000,000 | $ 1,913,000,000 | $ 1,290,000,000 | $ 1,913,000,000 | $ 1,913,000,000 | $ 1,290,000,000 | $ 1,290,000,000 | |||||||||
Change in Deferred Gain on Retroactive Reinsurance | 16,000,000 | 0 | 16,000,000 | 0 | 16,000,000 | 16,000,000 | 0 | 0 | |||||||||
Change in Deferred Gain on Retroactive Reinsurance, Net of Tax | 13,000,000 | 13,000,000 | 13,000,000 | 13,000,000 | |||||||||||||
Net investment income | 1,951,000,000 | 1,780,000,000 | 1,603,000,000 | ||||||||||||||
Revenues | 5,361,000,000 | $ 5,347,000,000 | $ 5,092,000,000 | $ 4,940,000,000 | 4,633,000,000 | $ 4,842,000,000 | $ 4,789,000,000 | $ 4,691,000,000 | 20,740,000,000 | 18,955,000,000 | 17,162,000,000 | ||||||
Net income (loss) available to common stockholders | 543,000,000 | $ 524,000,000 | 372,000,000 | $ 625,000,000 | 190,000,000 | 432,000,000 | $ 582,000,000 | $ 597,000,000 | 2,064,000,000 | 1,801,000,000 | $ (3,131,000,000) | ||||||
Adverse Development Cover Navigators Group [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Reinsurance premium | 91,000,000 | 91,000,000 | |||||||||||||||
Reinsurance Retention Policy, Amount Retained | 68,000,000 | ||||||||||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims | 97,000,000 | 97,000,000 | 84,000,000 | ||||||||||||||
Current accident year | 29,000,000 | ||||||||||||||||
Use of Retention Layer by Acquiree Prior to Acquisition | $ 32,000,000 | ||||||||||||||||
Adverse development from comprehensive annual review | $ 91,000,000 | 107,000,000 | |||||||||||||||
Change in Deferred Gain on Retroactive Reinsurance | 16,000,000 | $ 16,000,000 | 16,000,000 | 16,000,000 | |||||||||||||
Adverse Development Cover Navigators Group [Member] | Remaining [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Reinsurance Retention Policy, Excess Retention, Amount Reinsured | $ 193,000,000 | ||||||||||||||||
Adverse Development Cover Navigators Group [Member] | After tax [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Reinsurance premium | 72,000,000 | ||||||||||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims | 77,000,000 | ||||||||||||||||
Adverse Development Cover Navigators Group [Member] | Maximum | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Reinsurance Retention Policy, Excess Retention, Amount Reinsured | 300,000,000 | ||||||||||||||||
Adverse Development Cover Navigators Group [Member] | Retention Layer Above Reserve for the Covered Liabilities as of the Inception Date [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Reinsurance Retention Policy, Amount Retained | 100,000,000 | ||||||||||||||||
Adverse development from comprehensive annual review | 207,000,000 | ||||||||||||||||
Adverse Development Cover Navigators Group [Member] | Retention Layer for Reserve for the Covered Liabilities as of the Inception Date [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Reinsurance Retention Policy, Amount Retained | 1,816,000,000 | ||||||||||||||||
Recorded by Acquiree Prior to Acquisition [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Current accident year | $ 52,000,000 | ||||||||||||||||
The Navigators Group, Inc. [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Business Acquisition, Effective Date of Acquisition | May 23, 2019 | ||||||||||||||||
Business Acquisition, Name of Acquired Entity | Navigators Group | ||||||||||||||||
Business Acquisition, Share Price | $ 70 | ||||||||||||||||
Payments to Acquire Businesses, Gross | $ 2,121,000,000 | ||||||||||||||||
Business Combination, Consideration Transferred, Other | 23,000,000 | ||||||||||||||||
Goodwill | 623,000,000 | ||||||||||||||||
Net investment income | 67,000,000 | ||||||||||||||||
Net Investment Income, after Tax | 54,000,000 | ||||||||||||||||
Revenues | 1,000,000,000 | ||||||||||||||||
Net income (loss) available to common stockholders | $ 167,000,000 | ||||||||||||||||
Business Combination, Acquisition Related Costs | $ 17,000,000 | ||||||||||||||||
Business Combination, Consideration Transferred | $ 2,137,000,000 | ||||||||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | ||||||||||||||||
The Navigators Group, Inc. [Member] | Cash | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Payments to Acquire Businesses, Gross | $ 2,098,000,000 | ||||||||||||||||
Aetna Group Insurance [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Payments to Acquire Businesses, Gross | 1,450,000,000 | ||||||||||||||||
Business Combination, Consideration Transferred, Other | 2,000,000 | ||||||||||||||||
Goodwill | $ 723,000,000 | $ 723,000,000 | $ 723,000,000 | ||||||||||||||
Revenues | 370,000,000 | ||||||||||||||||
Net income (loss) available to common stockholders | 37,000,000 | ||||||||||||||||
Business Combination, Acquisition Related Costs | 17,000,000 | ||||||||||||||||
Business Combination, Consideration Transferred | $ 1,452,000,000 | ||||||||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Total Assets | 80,000,000 | $ 80,000,000 | |||||||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Total Liabilities | $ 80,000,000 | $ 80,000,000 | |||||||||||||||
Aetna Group Insurance [Member] | Marketing agreement with Aetna | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Finite-lived Intangible Assets Acquired, Term of Agreement | 3 years | ||||||||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | ||||||||||||||||
Aetna Group Insurance [Member] | Computer Software, Intangible Asset [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years | ||||||||||||||||
Aetna Group Insurance [Member] | Customer Relationships [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Goodwill | $ 723,000,000 | ||||||||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | ||||||||||||||||
Aetna Group Insurance [Member] | Intangible Assets Arising from Insurance Contracts Acquired in Business Combination [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 12 years |
Business Acquisitions - Fair Va
Business Acquisitions - Fair Value of Assets Acquired and Liabilities Assumed at the Acquisition Date (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2019 | May 23, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 01, 2017 | |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 1,913 | $ 1,290 | $ 1,290 | ||||
The Navigators Group, Inc. [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | $ 3,848 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Premiums Receivable | 492 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Reinsurance Recoverables | 1,100 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Prepaid Reinsurance Premiums | 238 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 580 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 83 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets | 99 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 6,440 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Unpaid Losses and Loss Adjustment Expenses | 2,823 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Deferred Revenue | 1,219 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | 284 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities | 48 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | 568 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 4,942 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 1,498 | ||||||
Goodwill | 623 | ||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 2,121 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 499 | ||||||
Aetna Group Insurance [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 3,405 | $ 3,360 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Premiums Receivable | 103 | 96 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Reinsurance Recoverables | 31 | 0 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 68 | 68 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets | 0 | 16 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 4,305 | 4,225 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Unpaid Losses and Loss Adjustment Expenses | 2,904 | 2,833 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Deferred Revenue | 4 | 3 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | 75 | 69 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 3,576 | 3,496 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 729 | 729 | |||||
Goodwill | 723 | 723 | |||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 1,452 | 1,452 | |||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Assets | $ 45 | ||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Premiums Receivable | 7 | ||||||
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets | 69 | 56 | |||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Deferred Income Taxes | 13 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 629 | 629 | |||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Intangibles | 0 | ||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Property, Plant, and Equipment | 0 | ||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Reinsurance Recoverables | 31 | ||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Other Assets | (16) | ||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Total Assets | $ 80 | 80 | |||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Unpaid Loss and Loss Adjustment Expenses | 71 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed,Liability for Future Policy Benefits | 347 | 346 | |||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Liability for Future Policy Benefits | 1 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Policyholder Benefits | 246 | $ 245 | |||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Policyholder Benefits | 1 | ||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Deferred Revenue | 1 | ||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Other Liabilities | 6 | ||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Total Liabilities | $ 80 | 80 | |||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Assets and Liabilities, Net | 0 | ||||||
Goodwill, Purchase Accounting Adjustments | 0 | ||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Assets Liabilities and Goodwill, Net | $ 0 | ||||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | $ 610 |
Business Acquisitions - Intangi
Business Acquisitions - Intangible Assets Recorded in Connection with the Acquisition (Details) - USD ($) | May 23, 2019 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Nov. 01, 2017 |
The Navigators Group, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 499,000,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | 81,000,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 580,000,000 | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | ||||
The Navigators Group, Inc. [Member] | Lloyd's Syndicate Capacity [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | $ 66,000,000 | ||||
The Navigators Group, Inc. [Member] | License [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | 15,000,000 | ||||
The Navigators Group, Inc. [Member] | Value of in-force contracts [1] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 180,000,000 | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 1 year | ||||
Finite-lived Intangible Assets Acquired | $ 180 | ||||
The Navigators Group, Inc. [Member] | Distribution relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 302,000,000 | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | ||||
Finite-lived Intangible Assets Acquired | 302 | ||||
The Navigators Group, Inc. [Member] | Trade Names [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 17,000,000 | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | ||||
Finite-lived Intangible Assets Acquired | $ 17 | ||||
Aetna Group Insurance [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 629,000,000 | $ 629,000,000 | |||
Finite-lived Intangible Assets Acquired | $ 629,000,000 | ||||
Aetna Group Insurance [Member] | Value of in-force contracts [1] | |||||
Business Acquisition [Line Items] | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 1 year | ||||
Finite-lived Intangible Assets Acquired | $ 23,000,000 | ||||
Aetna Group Insurance [Member] | Customer relationships [2] | |||||
Business Acquisition [Line Items] | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | ||||
Finite-lived Intangible Assets Acquired | $ 590,000,000 | ||||
Aetna Group Insurance [Member] | Marketing agreement with Aetna | |||||
Business Acquisition [Line Items] | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | ||||
Finite-lived Intangible Assets Acquired | $ 16,000,000 | ||||
Aetna Group Insurance [Member] | Software and Software Development Costs [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years | ||||
Aetna Group Insurance [Member] | Intangible Assets Arising from Insurance Contracts Acquired in Business Combination [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 12 years |
Business Acquisitions - Pro For
Business Acquisitions - Pro Forma Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
The Navigators Group, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Total Revenue | $ 21,416 | $ 20,398 | |
Net Income | $ 2,080 | $ 1,828 | |
Aetna Group Insurance [Member] | |||
Business Acquisition [Line Items] | |||
Total Revenue | $ 18,899 | ||
Net Income | $ (3,077) |
Earnings Per Common Share - Co
Earnings Per Common Share - Computation of Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings | |||||||||||
Income (loss) from continuing operations, net of tax | $ 2,085 | $ 1,485 | $ (262) | ||||||||
Preferred Stock Dividends, Income Statement Impact | 21 | 6 | 0 | ||||||||
Income loss from Continuing Operations Net of Tax Available to Common Shareholders | 2,064 | 1,479 | (262) | ||||||||
Income (loss) from discontinued operations, net of tax, available to common stockholders | 0 | 322 | (2,869) | ||||||||
Net income (loss) available to common stockholders | $ 543 | $ 524 | $ 372 | $ 625 | $ 190 | $ 432 | $ 582 | $ 597 | $ 2,064 | $ 1,801 | $ (3,131) |
Shares | |||||||||||
Weighted average common shares outstanding, basic | 360.9 | 358.4 | 363.7 | ||||||||
Dilutive effect of warrants [1] | 0.5 | 1.9 | 0 | ||||||||
Dilutive effect of stock-based awards under compensation plans | 3.5 | 3.8 | 0 | ||||||||
Weighted average common shares outstanding and dilutive potential common shares [2] | 364.9 | 364.1 | 363.7 | ||||||||
Basic | |||||||||||
Income (loss) from continuing operations, net of tax, available to common stockholders | $ 1.51 | $ 1.45 | $ 1.03 | $ 1.74 | $ 0.53 | $ 1.19 | $ 1.21 | $ 1.20 | $ 5.72 | $ 4.13 | $ (0.72) |
Income (loss) from discontinued operations, net of tax, available to common stockholders | 0 | 0 | 0 | 0 | 0 | 0.01 | 0.41 | 0.47 | 0 | 0.90 | (7.89) |
Net income (loss) available to common stockholders | 1.51 | 1.45 | 1.03 | 1.74 | 0.53 | 1.20 | 1.62 | 1.67 | 5.72 | 5.03 | (8.61) |
Diluted | |||||||||||
Income (loss) from continuing operations, net of tax, available to common stockholders | 1.49 | 1.43 | 1.02 | 1.71 | 0.52 | 1.17 | 1.19 | 1.18 | 5.66 | 4.06 | (0.72) |
Income (loss) from discontinued operations, net of tax, available to common stockholders | 0 | 0 | 0 | 0 | 0 | 0.02 | 0.41 | 0.46 | 0 | 0.89 | (7.89) |
Net income (loss) available to common stockholders | $ 1.49 | $ 1.43 | $ 1.02 | $ 1.71 | $ 0.52 | $ 1.19 | $ 1.60 | $ 1.64 | $ 5.66 | $ 4.95 | $ (8.61) |
Stock Compensation Plan | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Antidilutive securities (in shares) | 4.3 | ||||||||||
Warrant | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Antidilutive securities (in shares) | 2.5 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2019segment | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 5 |
Disclosure on Geographic Areas, Description of Revenue from External Customers | Over 95% of the Company's revenues are generated in the United States ("U.S."). The remaining revenues are generated in the United Kingdom, continental Europe and other international locations. |
Segment Information - Revenues
Segment Information - Revenues (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | $ 18,224,000,000 | $ 17,182,000,000 | $ 15,309,000,000 | ||||||||
Total net investment income | 1,951,000,000 | 1,780,000,000 | 1,603,000,000 | ||||||||
Net realized capital gains (losses) | 395,000,000 | (112,000,000) | 165,000,000 | ||||||||
Other revenues | 170,000,000 | 105,000,000 | 85,000,000 | ||||||||
Total revenues | $ 5,361,000,000 | $ 5,347,000,000 | $ 5,092,000,000 | $ 4,940,000,000 | $ 4,633,000,000 | $ 4,842,000,000 | $ 4,789,000,000 | $ 4,691,000,000 | 20,740,000,000 | 18,955,000,000 | 17,162,000,000 |
Property and Casualty, Commercial Insurance [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 8,325,000,000 | 7,081,000,000 | 6,902,000,000 | ||||||||
Total net investment income | 1,129,000,000 | 997,000,000 | 949,000,000 | ||||||||
Property and Casualty, Commercial Insurance [Member] | Workers’ compensation | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 3,314,000,000 | 3,341,000,000 | 3,287,000,000 | ||||||||
Property and Casualty, Commercial Insurance [Member] | Liability | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 1,064,000,000 | 653,000,000 | 604,000,000 | ||||||||
Property and Casualty, Commercial Insurance [Member] | Marine [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 147,000,000 | 0 | 0 | ||||||||
Property and Casualty, Commercial Insurance [Member] | Package business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 1,471,000,000 | 1,364,000,000 | 1,301,000,000 | ||||||||
Property and Casualty, Commercial Insurance [Member] | Property | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 728,000,000 | 618,000,000 | 604,000,000 | ||||||||
Property and Casualty, Commercial Insurance [Member] | Professional liability | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 447,000,000 | 254,000,000 | 246,000,000 | ||||||||
Property and Casualty, Commercial Insurance [Member] | Bond | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 261,000,000 | 241,000,000 | 230,000,000 | ||||||||
Property and Casualty, Commercial Insurance [Member] | Assumed Reinsurance [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 180,000,000 | 0 | 0 | ||||||||
Property and Casualty, Commercial Insurance [Member] | Automobile | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 713,000,000 | 610,000,000 | 630,000,000 | ||||||||
Property and Casualty, Personal Insurance [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 3,235,000,000 | 3,439,000,000 | 3,734,000,000 | ||||||||
Total net investment income | 179,000,000 | 155,000,000 | 141,000,000 | ||||||||
Property and Casualty, Personal Insurance [Member] | AARP Members | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 2,900,000,000 | 3,000,000,000 | 3,200,000,000 | ||||||||
Property and Casualty, Personal Insurance [Member] | Property | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 987,000,000 | 1,041,000,000 | 1,117,000,000 | ||||||||
Property and Casualty, Personal Insurance [Member] | Automobile | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 2,248,000,000 | 2,398,000,000 | 2,617,000,000 | ||||||||
Property & Casualty Other Operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 2,000,000 | 0 | 0 | ||||||||
Total net investment income | 84,000,000 | 90,000,000 | 106,000,000 | ||||||||
Group Benefits | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 5,603,000,000 | 5,598,000,000 | 3,677,000,000 | ||||||||
Total net investment income | 486,000,000 | 474,000,000 | 381,000,000 | ||||||||
Group Benefits | Group disability | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 2,828,000,000 | 2,746,000,000 | 1,718,000,000 | ||||||||
Group Benefits | Group life | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 2,521,000,000 | 2,611,000,000 | 1,745,000,000 | ||||||||
Group Benefits | Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 254,000,000 | 241,000,000 | 214,000,000 | ||||||||
Hartford Funds | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 999,000,000 | 1,032,000,000 | 992,000,000 | ||||||||
Total net investment income | 7,000,000 | 5,000,000 | 3,000,000 | ||||||||
Hartford Funds | Third party retail customers [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 907,000,000 | 932,000,000 | 888,000,000 | ||||||||
Hartford Funds | Talcott Resolution [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 92,000,000 | 100,000,000 | 104,000,000 | ||||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 60,000,000 | 32,000,000 | 4,000,000 | ||||||||
Total net investment income | $ 66,000,000 | $ 59,000,000 | 23,000,000 | ||||||||
Accounting Standards Update 2014-09 [Member] | Operating Expense [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income | $ 188 |
Segment Information - Net Incom
Segment Information - Net Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Net income (loss) | $ 548 | $ 535 | $ 372 | $ 630 | $ 196 | $ 432 | $ 582 | $ 597 | $ 2,085 | $ 1,807 | $ (3,131) |
Preferred stock dividends | 5 | 11 | 0 | 5 | 6 | 0 | 0 | 0 | 21 | 6 | 0 |
Net income (loss) available to common stockholders | $ 543 | $ 524 | $ 372 | $ 625 | $ 190 | $ 432 | $ 582 | $ 597 | 2,064 | 1,801 | (3,131) |
Commercial Lines | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net income (loss) | 1,192 | 1,212 | 865 | ||||||||
Personal Lines | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net income (loss) | 318 | (32) | (9) | ||||||||
Property & Casualty Other Operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net income (loss) | 61 | 15 | 69 | ||||||||
Group Benefits | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net income (loss) | 536 | 340 | 294 | ||||||||
Hartford Funds | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net income (loss) | 149 | 148 | 106 | ||||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net income (loss) | $ (171) | $ 124 | $ (4,456) |
Segment Information - Net Inves
Segment Information - Net Investment Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Net investment income | $ 1,951 | $ 1,780 | $ 1,603 |
Property and Casualty, Commercial Insurance [Member] | |||
Segment Reporting Information [Line Items] | |||
Net investment income | 1,129 | 997 | 949 |
Property and Casualty, Personal Insurance [Member] | |||
Segment Reporting Information [Line Items] | |||
Net investment income | 179 | 155 | 141 |
Property & Casualty Other Operations | |||
Segment Reporting Information [Line Items] | |||
Net investment income | 84 | 90 | 106 |
Group Benefits | |||
Segment Reporting Information [Line Items] | |||
Net investment income | 486 | 474 | 381 |
Hartford Funds | |||
Segment Reporting Information [Line Items] | |||
Net investment income | 7 | 5 | 3 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Net investment income | $ 66 | $ 59 | $ 23 |
Segment Information - Amortizat
Segment Information - Amortization of Deferred Policy Acquisition Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Amortization of deferred policy acquisition costs (DAC) | $ 1,622 | $ 1,384 | $ 1,372 |
Property and Casualty, Commercial Insurance [Member] | |||
Segment Reporting Information [Line Items] | |||
Amortization of deferred policy acquisition costs (DAC) | 1,296 | 1,048 | 1,009 |
Personal Lines | |||
Segment Reporting Information [Line Items] | |||
Amortization of deferred policy acquisition costs (DAC) | 259 | 275 | 309 |
Group Benefits | |||
Segment Reporting Information [Line Items] | |||
Amortization of deferred policy acquisition costs (DAC) | 54 | 45 | 33 |
Hartford Funds | |||
Segment Reporting Information [Line Items] | |||
Amortization of deferred policy acquisition costs (DAC) | 12 | 16 | 21 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Amortization of deferred policy acquisition costs (DAC) | $ 1 | $ 0 | $ 0 |
Segment Information - Amortiz_2
Segment Information - Amortization of Other Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Amortization of other intangible assets | $ 66 | $ 68 | $ 14 |
Commercial Lines | |||
Segment Reporting Information [Line Items] | |||
Amortization of other intangible assets | 18 | 4 | 1 |
Property and Casualty, Personal Insurance [Member] | |||
Segment Reporting Information [Line Items] | |||
Amortization of other intangible assets | 6 | 4 | 4 |
Group Benefits | |||
Segment Reporting Information [Line Items] | |||
Amortization of other intangible assets | 41 | 60 | 9 |
Corporate, Non-Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Amortization of other intangible assets | $ 1 | $ 0 | $ 0 |
Segment Information - Income Ta
Segment Information - Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Income tax expense | $ 475 | $ 268 | $ 985 |
Commercial Lines | |||
Segment Reporting Information [Line Items] | |||
Income tax expense | 270 | 267 | 377 |
Personal Lines | |||
Segment Reporting Information [Line Items] | |||
Income tax expense | 76 | (19) | 26 |
Property & Casualty Other Operations | |||
Segment Reporting Information [Line Items] | |||
Income tax expense | 12 | (7) | 24 |
Group Benefits | |||
Segment Reporting Information [Line Items] | |||
Income tax expense | 126 | 84 | 38 |
Hartford Funds | |||
Segment Reporting Information [Line Items] | |||
Income tax expense | 37 | 38 | 63 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Income tax expense | $ (46) | $ (95) | $ 457 |
Segment Information - Assets (D
Segment Information - Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 70,817 | $ 62,307 |
Commercial Lines | ||
Segment Reporting Information [Line Items] | ||
Total assets | 42,041 | 31,693 |
Personal Lines | ||
Segment Reporting Information [Line Items] | ||
Total assets | 6,310 | 6,180 |
Property & Casualty Other Operations | ||
Segment Reporting Information [Line Items] | ||
Total assets | 3,560 | 3,351 |
Group Benefits | ||
Segment Reporting Information [Line Items] | ||
Total assets | 14,595 | 14,114 |
Hartford Funds | ||
Segment Reporting Information [Line Items] | ||
Total assets | 634 | 583 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 3,677 | $ 6,386 |
Segment Information - Non-insur
Segment Information - Non-insurance Revenue from Customers (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Fee income | $ 1,301 | $ 1,313 | $ 1,168 |
Other Income | 170 | 105 | 85 |
Revenue from Contract with Customer, Excluding Assessed Tax | 1,404 | 1,418 | 1,253 |
Installment billing fees [Member] | Operating Segments | Property and Casualty, Commercial Insurance [Member] | |||
Segment Reporting Information [Line Items] | |||
Fee income | 35 | 34 | 37 |
Installment billing fees [Member] | Operating Segments | Property and Casualty, Personal Insurance [Member] | |||
Segment Reporting Information [Line Items] | |||
Fee income | 37 | 40 | 44 |
Insurance servicing fees [Member] | Operating Segments | Property and Casualty, Personal Insurance [Member] | |||
Segment Reporting Information [Line Items] | |||
Other Income | 83 | 84 | 85 |
Administrative services fees [Member] | Operating Segments | Group Benefits | |||
Segment Reporting Information [Line Items] | |||
Fee income | 180 | 175 | 91 |
Advisor, distribution and other management fees [Member] | Operating Segments | Mutual Fund [Member] | |||
Segment Reporting Information [Line Items] | |||
Fee income | 911 | 947 | 897 |
Other fees [Member] | Operating Segments | Mutual Fund [Member] | |||
Segment Reporting Information [Line Items] | |||
Fee income | 88 | 85 | 95 |
Investment management and other fees [Member] | Corporate | |||
Segment Reporting Information [Line Items] | |||
Fee income | 50 | 32 | 4 |
Transition service fees [Member] | Corporate | |||
Segment Reporting Information [Line Items] | |||
Other Income | $ 20 | $ 21 | $ 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value by Hierarchy (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 |
Assets accounted for at fair value on a recurring basis | |||
Total fixed maturities | $ 42,148 | $ 35,652 | |
Fixed maturities, FVO | 11 | 22 | |
Equity securities, at fair value | 1,657 | 1,214 | $ 1,000 |
Derivative assets | 12 | 7 | |
Short-term investments | 2,921 | 4,283 | |
Total assets accounted for at fair value on a recurring basis | 46,749 | 41,178 | |
Liabilities accounted for at fair value on a recurring basis | |||
Derivative liabilities | (78) | (68) | |
Contingent consideration | (22) | (35) | |
Total liabilities accounted for at fair value on a recurring basis | (100) | (103) | |
Credit derivatives | |||
Assets accounted for at fair value on a recurring basis | |||
Derivative assets | 11 | 5 | |
Liabilities accounted for at fair value on a recurring basis | |||
Derivative liabilities | (1) | (2) | |
Equity derivatives | |||
Assets accounted for at fair value on a recurring basis | |||
Derivative assets | 3 | ||
Liabilities accounted for at fair value on a recurring basis | |||
Derivative liabilities | (15) | 1 | |
Foreign exchange derivatives | |||
Assets accounted for at fair value on a recurring basis | |||
Derivative assets | (2) | ||
Liabilities accounted for at fair value on a recurring basis | |||
Derivative liabilities | (2) | (5) | |
Interest rate derivatives | |||
Assets accounted for at fair value on a recurring basis | |||
Derivative assets | 1 | 1 | |
Liabilities accounted for at fair value on a recurring basis | |||
Derivative liabilities | (60) | (62) | |
Asset backed securities (ABS) | |||
Assets accounted for at fair value on a recurring basis | |||
Total fixed maturities | 1,476 | 1,276 | |
Collateralized loan obligations (CLOs) | |||
Assets accounted for at fair value on a recurring basis | |||
Total fixed maturities | 2,183 | 1,437 | |
Commercial mortgage-backed securities (CMBS) | |||
Assets accounted for at fair value on a recurring basis | |||
Total fixed maturities | 4,338 | 3,552 | |
Corporate | |||
Assets accounted for at fair value on a recurring basis | |||
Total fixed maturities | 17,396 | 13,398 | |
Foreign government/government agencies | |||
Assets accounted for at fair value on a recurring basis | |||
Total fixed maturities | 1,123 | 847 | |
Municipal | |||
Assets accounted for at fair value on a recurring basis | |||
Total fixed maturities | 9,498 | 10,346 | |
Residential mortgage-backed securities (RMBS) | |||
Assets accounted for at fair value on a recurring basis | |||
Total fixed maturities | 4,869 | 3,279 | |
U.S. Treasuries | |||
Assets accounted for at fair value on a recurring basis | |||
Total fixed maturities | 1,265 | 1,517 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Assets accounted for at fair value on a recurring basis | |||
Total fixed maturities | 330 | 330 | |
Fixed maturities, FVO | 0 | 0 | |
Equity securities, at fair value | 1,401 | 1,093 | |
Derivative assets | 0 | ||
Short-term investments | 1,028 | 1,039 | |
Total assets accounted for at fair value on a recurring basis | 2,759 | 2,462 | |
Liabilities accounted for at fair value on a recurring basis | |||
Derivative liabilities | 0 | 0 | |
Contingent consideration | 0 | 0 | |
Total liabilities accounted for at fair value on a recurring basis | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Credit derivatives | |||
Assets accounted for at fair value on a recurring basis | |||
Derivative assets | 0 | 0 | |
Liabilities accounted for at fair value on a recurring basis | |||
Derivative liabilities | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity derivatives | |||
Assets accounted for at fair value on a recurring basis | |||
Derivative assets | 0 | ||
Liabilities accounted for at fair value on a recurring basis | |||
Derivative liabilities | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign exchange derivatives | |||
Assets accounted for at fair value on a recurring basis | |||
Derivative assets | 0 | ||
Liabilities accounted for at fair value on a recurring basis | |||
Derivative liabilities | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate derivatives | |||
Assets accounted for at fair value on a recurring basis | |||
Derivative assets | 0 | 0 | |
Liabilities accounted for at fair value on a recurring basis | |||
Derivative liabilities | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset backed securities (ABS) | |||
Assets accounted for at fair value on a recurring basis | |||
Total fixed maturities | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Collateralized loan obligations (CLOs) | |||
Assets accounted for at fair value on a recurring basis | |||
Total fixed maturities | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial mortgage-backed securities (CMBS) | |||
Assets accounted for at fair value on a recurring basis | |||
Total fixed maturities | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate | |||
Assets accounted for at fair value on a recurring basis | |||
Total fixed maturities | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign government/government agencies | |||
Assets accounted for at fair value on a recurring basis | |||
Total fixed maturities | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal | |||
Assets accounted for at fair value on a recurring basis | |||
Total fixed maturities | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential mortgage-backed securities (RMBS) | |||
Assets accounted for at fair value on a recurring basis | |||
Total fixed maturities | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasuries | |||
Assets accounted for at fair value on a recurring basis | |||
Total fixed maturities | 330 | 330 | |
Significant Observable Inputs (Level 2) | |||
Assets accounted for at fair value on a recurring basis | |||
Total fixed maturities | 40,404 | 33,757 | |
Fixed maturities, FVO | 11 | 22 | |
Equity securities, at fair value | 183 | 44 | |
Derivative assets | 12 | 4 | |
Short-term investments | 1,878 | 3,244 | |
Total assets accounted for at fair value on a recurring basis | 42,488 | 37,071 | |
Liabilities accounted for at fair value on a recurring basis | |||
Derivative liabilities | (63) | (69) | |
Contingent consideration | 0 | 0 | |
Total liabilities accounted for at fair value on a recurring basis | (63) | (69) | |
Significant Observable Inputs (Level 2) | Credit derivatives | |||
Assets accounted for at fair value on a recurring basis | |||
Derivative assets | 11 | 5 | |
Liabilities accounted for at fair value on a recurring basis | |||
Derivative liabilities | (1) | (2) | |
Significant Observable Inputs (Level 2) | Equity derivatives | |||
Assets accounted for at fair value on a recurring basis | |||
Derivative assets | 0 | ||
Liabilities accounted for at fair value on a recurring basis | |||
Derivative liabilities | 0 | 1 | |
Significant Observable Inputs (Level 2) | Foreign exchange derivatives | |||
Assets accounted for at fair value on a recurring basis | |||
Derivative assets | (2) | ||
Liabilities accounted for at fair value on a recurring basis | |||
Derivative liabilities | (2) | (5) | |
Significant Observable Inputs (Level 2) | Interest rate derivatives | |||
Assets accounted for at fair value on a recurring basis | |||
Derivative assets | 1 | 1 | |
Liabilities accounted for at fair value on a recurring basis | |||
Derivative liabilities | (60) | (63) | |
Significant Observable Inputs (Level 2) | Asset backed securities (ABS) | |||
Assets accounted for at fair value on a recurring basis | |||
Total fixed maturities | 1,461 | 1,266 | |
Significant Observable Inputs (Level 2) | Collateralized loan obligations (CLOs) | |||
Assets accounted for at fair value on a recurring basis | |||
Total fixed maturities | 2,088 | 1,337 | |
Significant Observable Inputs (Level 2) | Commercial mortgage-backed securities (CMBS) | |||
Assets accounted for at fair value on a recurring basis | |||
Total fixed maturities | 4,329 | 3,540 | |
Significant Observable Inputs (Level 2) | Corporate | |||
Assets accounted for at fair value on a recurring basis | |||
Total fixed maturities | 16,664 | 12,878 | |
Significant Observable Inputs (Level 2) | Foreign government/government agencies | |||
Assets accounted for at fair value on a recurring basis | |||
Total fixed maturities | 1,120 | 844 | |
Significant Observable Inputs (Level 2) | Municipal | |||
Assets accounted for at fair value on a recurring basis | |||
Total fixed maturities | 9,498 | 10,346 | |
Significant Observable Inputs (Level 2) | Residential mortgage-backed securities (RMBS) | |||
Assets accounted for at fair value on a recurring basis | |||
Total fixed maturities | 4,309 | 2,359 | |
Significant Observable Inputs (Level 2) | U.S. Treasuries | |||
Assets accounted for at fair value on a recurring basis | |||
Total fixed maturities | 935 | 1,187 | |
Significant Unobservable Inputs (Level 3) | |||
Assets accounted for at fair value on a recurring basis | |||
Total fixed maturities | 1,414 | 1,565 | |
Fixed maturities, FVO | 0 | 0 | |
Equity securities, at fair value | 73 | 77 | |
Derivative assets | 0 | 3 | |
Short-term investments | 15 | 0 | |
Total assets accounted for at fair value on a recurring basis | 1,502 | 1,645 | |
Liabilities accounted for at fair value on a recurring basis | |||
Derivative liabilities | (15) | 1 | |
Contingent consideration | (22) | (35) | |
Total liabilities accounted for at fair value on a recurring basis | (37) | (34) | |
Significant Unobservable Inputs (Level 3) | Credit derivatives | |||
Assets accounted for at fair value on a recurring basis | |||
Derivative assets | 0 | 0 | |
Liabilities accounted for at fair value on a recurring basis | |||
Derivative liabilities | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Equity derivatives | |||
Assets accounted for at fair value on a recurring basis | |||
Derivative assets | 3 | ||
Liabilities accounted for at fair value on a recurring basis | |||
Derivative liabilities | (15) | 0 | |
Significant Unobservable Inputs (Level 3) | Foreign exchange derivatives | |||
Assets accounted for at fair value on a recurring basis | |||
Derivative assets | 0 | ||
Liabilities accounted for at fair value on a recurring basis | |||
Derivative liabilities | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Interest rate derivatives | |||
Assets accounted for at fair value on a recurring basis | |||
Derivative assets | 0 | 0 | |
Liabilities accounted for at fair value on a recurring basis | |||
Derivative liabilities | 0 | 1 | |
Significant Unobservable Inputs (Level 3) | Asset backed securities (ABS) | |||
Assets accounted for at fair value on a recurring basis | |||
Total fixed maturities | 15 | 10 | |
Significant Unobservable Inputs (Level 3) | Collateralized loan obligations (CLOs) | |||
Assets accounted for at fair value on a recurring basis | |||
Total fixed maturities | 95 | 100 | |
Significant Unobservable Inputs (Level 3) | Commercial mortgage-backed securities (CMBS) | |||
Assets accounted for at fair value on a recurring basis | |||
Total fixed maturities | 9 | 12 | |
Significant Unobservable Inputs (Level 3) | Corporate | |||
Assets accounted for at fair value on a recurring basis | |||
Total fixed maturities | 732 | 520 | |
Significant Unobservable Inputs (Level 3) | Foreign government/government agencies | |||
Assets accounted for at fair value on a recurring basis | |||
Total fixed maturities | 3 | 3 | |
Significant Unobservable Inputs (Level 3) | Municipal | |||
Assets accounted for at fair value on a recurring basis | |||
Total fixed maturities | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Residential mortgage-backed securities (RMBS) | |||
Assets accounted for at fair value on a recurring basis | |||
Total fixed maturities | 560 | 920 | |
Significant Unobservable Inputs (Level 3) | U.S. Treasuries | |||
Assets accounted for at fair value on a recurring basis | |||
Total fixed maturities | $ 0 | $ 0 |
Fair Value Measurements - Signi
Fair Value Measurements - Significant Unobservable Inputs - Securities (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturities | $ 42,148 | $ 35,652 |
CMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturities | 4,338 | 3,552 |
Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturities | 17,396 | 13,398 |
Municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturities | 9,498 | 10,346 |
Residential mortgage-backed securities (RMBS) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturities | 4,869 | 3,279 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturities | 1,414 | 1,565 |
Significant Unobservable Inputs (Level 3) | CMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturities | 9 | 12 |
Significant Unobservable Inputs (Level 3) | Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturities | 732 | 520 |
Significant Unobservable Inputs (Level 3) | Municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Residential mortgage-backed securities (RMBS) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturities | 560 | 920 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | CLOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturities | $ 95 | |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | CLOs | Measurement Input, Credit Spread [Member] | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Asset, Measurement Input | 2.46 | |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | CLOs | Measurement Input, Credit Spread [Member] | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Asset, Measurement Input | 2.46 | |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | CLOs | Measurement Input, Credit Spread [Member] | Weighted Average Expected Life | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Asset, Measurement Input | 2.46 | |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | CMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturities | $ 1 | $ 2 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | CMBS | Measurement Input, Credit Spread [Member] | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Asset, Measurement Input | 0.09 | 0.09 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | CMBS | Measurement Input, Credit Spread [Member] | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Asset, Measurement Input | 18.32 | 10.40 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | CMBS | Measurement Input, Credit Spread [Member] | Weighted Average Expected Life | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Asset, Measurement Input | 1.61 | 1.82 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturities | $ 633 | $ 274 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Corporate | Measurement Input, Credit Spread [Member] | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Asset, Measurement Input | 0.93 | 1.45 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Corporate | Measurement Input, Credit Spread [Member] | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Asset, Measurement Input | 7.88 | 11.75 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Corporate | Measurement Input, Credit Spread [Member] | Weighted Average Expected Life | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Asset, Measurement Input | 2.36 | 2.63 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Residential mortgage-backed securities (RMBS) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturities | $ 560 | $ 815 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Residential mortgage-backed securities (RMBS) | Measurement Input, Credit Spread [Member] | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Asset, Measurement Input | 0.05 | 0.12 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Residential mortgage-backed securities (RMBS) | Measurement Input, Credit Spread [Member] | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Asset, Measurement Input | 2.33 | 2.15 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Residential mortgage-backed securities (RMBS) | Measurement Input, Credit Spread [Member] | Weighted Average Expected Life | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Asset, Measurement Input | 0.79 | 0.86 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Residential mortgage-backed securities (RMBS) | Measurement Input, Constant Prepayment Rate [Member] | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Prepayment Speed | 0.00% | 1.00% |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Residential mortgage-backed securities (RMBS) | Measurement Input, Constant Prepayment Rate [Member] | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Prepayment Speed | 11.00% | 15.00% |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Residential mortgage-backed securities (RMBS) | Measurement Input, Constant Prepayment Rate [Member] | Weighted Average Expected Life | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Prepayment Speed | 6.00% | 6.00% |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Residential mortgage-backed securities (RMBS) | Measurement Input, Default Rate [Member] | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Expected Credit Losses | 1.00% | 1.00% |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Residential mortgage-backed securities (RMBS) | Measurement Input, Default Rate [Member] | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Expected Credit Losses | 6.00% | 8.00% |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Residential mortgage-backed securities (RMBS) | Measurement Input, Default Rate [Member] | Weighted Average Expected Life | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Expected Credit Losses | 3.00% | 3.00% |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Residential mortgage-backed securities (RMBS) | Measurement Input, Loss Severity [Member] | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Expected Credit Losses | 0.00% | 0.00% |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Residential mortgage-backed securities (RMBS) | Measurement Input, Loss Severity [Member] | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Expected Credit Losses | 100.00% | 100.00% |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Residential mortgage-backed securities (RMBS) | Measurement Input, Loss Severity [Member] | Weighted Average Expected Life | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Expected Credit Losses | 70.00% | 61.00% |
Fair Value Measurements - Sig_2
Fair Value Measurements - Significant Unobservable Inputs - Derivatives (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Equity options | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Derivative Assets (Liabilities), at Fair Value, Net | $ (15) | $ 3 |
Interest Rate Swaption | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Derivative Assets (Liabilities), at Fair Value, Net | $ 1 | |
Interest Rate Swaption | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Measurements, Unobservable Swap_Curve | 3.00% | |
Interest Rate Swaption | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Measurements, Unobservable Swap_Curve | 3.00% | |
Interest Rate Swaption | Weighted Average Expected Life | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Measurements, Unobservable Swap_Curve | 3.00% | |
Measurement Input, Option Volatility [Member] | Equity options | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Measurements, Unobservable Swap_Curve | 13.00% | 19.00% |
Measurement Input, Option Volatility [Member] | Equity options | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Measurements, Unobservable Swap_Curve | 28.00% | 21.00% |
Measurement Input, Option Volatility [Member] | Equity options | Weighted Average Expected Life | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Measurements, Unobservable Swap_Curve | 17.00% | 20.00% |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value Recurring Basis, Unobservable Input (Details) - Significant Unobservable Inputs (Level 3) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Liabilities | ||
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss) | $ (7) | $ (6) |
Contingent Consideration | ||
Liabilities | ||
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss) | (7) | (6) |
Fair Value, Measurements, Recurring | ||
Assets | ||
Beginning balance | 2,030 | |
Total realized/unrealized gains (losses), Included in net income | (4) | 32 |
Total realized/unrealized gains (losses), Included in OCI | 9 | (35) |
Purchases | 895 | 929 |
Settlements | (405) | (374) |
Sales | (142) | (172) |
Transfers into Level 3 | 61 | 47 |
Transfers out of Level 3 | (555) | (811) |
Freestanding Derivatives, net | ||
Beginning balance | 4 | 2 |
Total realized/unrealized gains (losses), Included in net income | 3 | |
Total realized/unrealized gains (losses), Included in OCI | 0 | |
Purchases | 1 | |
Settlements | 0 | |
Sales | (2) | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | 0 | |
Ending balance | 4 | |
Fair Value, Measurements, Recurring | Contingent Consideration | ||
Liabilities | ||
Beginning balance | (35) | (29) |
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss) | (7) | (6) |
Total realized/unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases | 0 | 0 |
Settlements | 20 | 0 |
Sales | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Ending balance | (22) | (35) |
Fair Value, Measurements, Recurring | Liability [Member] | ||
Liabilities | ||
Beginning balance | (32) | (29) |
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss) | (25) | (6) |
Total realized/unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases | 0 | 0 |
Settlements | 20 | 0 |
Sales | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Ending balance | (37) | (32) |
Fair Value, Measurements, Recurring | Derivative [Member] | ||
Freestanding Derivatives, net | ||
Beginning balance | 1 | |
Total realized/unrealized gains (losses), Included in net income | (1) | |
Total realized/unrealized gains (losses), Included in OCI | 0 | |
Purchases | 0 | |
Settlements | 0 | |
Sales | 0 | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | 0 | |
Ending balance | 0 | 1 |
Fair Value, Measurements, Recurring | Derivative [Member] | Liability [Member] | ||
Freestanding Derivatives, net | ||
Beginning balance | 3 | |
Total realized/unrealized gains (losses), Included in net income | (18) | |
Total realized/unrealized gains (losses), Included in OCI | 0 | |
Purchases | 0 | |
Settlements | 0 | |
Sales | 0 | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | 0 | |
Ending balance | (15) | 3 |
Fair Value, Measurements, Recurring | Equity | ||
Freestanding Derivatives, net | ||
Beginning balance | 3 | 1 |
Total realized/unrealized gains (losses), Included in net income | (18) | 3 |
Total realized/unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases | 0 | 1 |
Settlements | 0 | 0 |
Sales | 0 | (2) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Ending balance | (15) | 3 |
Fair Value, Measurements, Recurring | Interest rate derivatives | ||
Freestanding Derivatives, net | ||
Beginning balance | 1 | 1 |
Total realized/unrealized gains (losses), Included in net income | (1) | 0 |
Total realized/unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases | 0 | 0 |
Settlements | 0 | 0 |
Sales | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Ending balance | 0 | 1 |
Fair Value, Measurements, Recurring | Equity securities | ||
Assets | ||
Beginning balance | 77 | 76 |
Total realized/unrealized gains (losses), Included in net income | 29 | |
Total realized/unrealized gains (losses), Included in OCI | 0 | |
Purchases | 12 | |
Settlements | 0 | |
Sales | (40) | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | 0 | |
Ending balance | 77 | |
Fair Value, Measurements, Recurring | Assets [Member] | ||
Assets | ||
Beginning balance | 1,643 | |
Ending balance | 1,502 | 1,643 |
Fair Value, Measurements, Recurring | Equity securities | Short-term Investments [Member] | ||
Assets | ||
Beginning balance | 0 | |
Total realized/unrealized gains (losses), Included in net income | 0 | |
Total realized/unrealized gains (losses), Included in OCI | 0 | |
Purchases | 15 | |
Settlements | 0 | |
Sales | 0 | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | 0 | |
Ending balance | 15 | 0 |
Fair Value, Measurements, Recurring | Equity securities | Equity securities | ||
Assets | ||
Beginning balance | 77 | |
Total realized/unrealized gains (losses), Included in net income | 0 | |
Total realized/unrealized gains (losses), Included in OCI | 0 | |
Purchases | 9 | |
Settlements | 0 | |
Sales | (13) | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | 0 | |
Ending balance | 73 | 77 |
Fair Value, Measurements, Recurring | Securities available-for-sale and other | Total fixed maturities | ||
Assets | ||
Beginning balance | 1,565 | 1,952 |
Total realized/unrealized gains (losses), Included in net income | (3) | 0 |
Total realized/unrealized gains (losses), Included in OCI | 9 | (35) |
Purchases | 871 | 916 |
Settlements | (405) | (374) |
Sales | (129) | (130) |
Transfers into Level 3 | 61 | 47 |
Transfers out of Level 3 | (555) | (811) |
Ending balance | 1,414 | 1,565 |
Fair Value, Measurements, Recurring | Securities available-for-sale and other | ABS | Total fixed maturities | ||
Assets | ||
Beginning balance | 10 | 19 |
Total realized/unrealized gains (losses), Included in net income | 0 | 0 |
Total realized/unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases | 20 | 90 |
Settlements | (1) | (5) |
Sales | 0 | (4) |
Transfers into Level 3 | 0 | 12 |
Transfers out of Level 3 | (14) | (102) |
Ending balance | 15 | 10 |
Fair Value, Measurements, Recurring | Securities available-for-sale and other | CDOs | Total fixed maturities | ||
Assets | ||
Beginning balance | 100 | 95 |
Total realized/unrealized gains (losses), Included in net income | 0 | 0 |
Total realized/unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases | 329 | 330 |
Settlements | (127) | 0 |
Sales | (6) | (13) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | (201) | (312) |
Ending balance | 95 | 100 |
Fair Value, Measurements, Recurring | Securities available-for-sale and other | CMBS | Total fixed maturities | ||
Assets | ||
Beginning balance | 12 | 69 |
Total realized/unrealized gains (losses), Included in net income | 0 | (1) |
Total realized/unrealized gains (losses), Included in OCI | 1 | 0 |
Purchases | 34 | 25 |
Settlements | (4) | (14) |
Sales | 0 | (8) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | (34) | (59) |
Ending balance | 9 | 12 |
Fair Value, Measurements, Recurring | Securities available-for-sale and other | Corporate | Total fixed maturities | ||
Assets | ||
Beginning balance | 520 | 520 |
Total realized/unrealized gains (losses), Included in net income | (4) | 1 |
Total realized/unrealized gains (losses), Included in OCI | 16 | (18) |
Purchases | 354 | 197 |
Settlements | (59) | (36) |
Sales | (88) | (52) |
Transfers into Level 3 | 61 | 31 |
Transfers out of Level 3 | (68) | (123) |
Ending balance | 732 | 520 |
Fair Value, Measurements, Recurring | Securities available-for-sale and other | Foreign government/government agencies | Total fixed maturities | ||
Assets | ||
Beginning balance | 3 | 2 |
Total realized/unrealized gains (losses), Included in net income | 0 | 0 |
Total realized/unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases | 0 | 1 |
Settlements | 0 | 0 |
Sales | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Ending balance | 3 | 3 |
Fair Value, Measurements, Recurring | Securities available-for-sale and other | Municipal | Total fixed maturities | ||
Assets | ||
Beginning balance | 0 | 17 |
Total realized/unrealized gains (losses), Included in net income | 0 | |
Total realized/unrealized gains (losses), Included in OCI | (1) | |
Purchases | 0 | |
Settlements | 0 | |
Sales | (1) | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | (15) | |
Ending balance | 0 | |
Fair Value, Measurements, Recurring | Securities available-for-sale and other | Residential mortgage-backed securities (RMBS) | Total fixed maturities | ||
Assets | ||
Beginning balance | 920 | 1,230 |
Total realized/unrealized gains (losses), Included in net income | 1 | 0 |
Total realized/unrealized gains (losses), Included in OCI | (8) | (16) |
Purchases | 134 | 273 |
Settlements | (214) | (319) |
Sales | (35) | (52) |
Transfers into Level 3 | 0 | 4 |
Transfers out of Level 3 | (238) | (200) |
Ending balance | 560 | 920 |
Previously Reported [Member] | Fair Value, Measurements, Recurring | ||
Assets | ||
Beginning balance | 1,646 | |
Ending balance | 1,646 | |
Previously Reported [Member] | Fair Value, Measurements, Recurring | Liability [Member] | ||
Liabilities | ||
Beginning balance | $ (35) | |
Ending balance | $ (35) |
Fair Value Measurements - Chang
Fair Value Measurements - Changes in Unrealized Gains (Losses) Included in Net Income for Financial Instruments Classified as Level 3 Still Held at Year End (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | $ (20) | $ 0 |
Other Comprehensive Income (Loss) [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | 10 | 28 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Liabilities | (7) | (6) |
Significant Unobservable Inputs (Level 3) | Contingent Consideration | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Liabilities | (7) | (6) |
Significant Unobservable Inputs (Level 3) | Equity securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | 1 | 0 |
Significant Unobservable Inputs (Level 3) | Derivatives, net | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Derivatives | (19) | 1 |
Significant Unobservable Inputs (Level 3) | Derivatives, net | Equity derivatives | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Derivatives | (18) | 1 |
Significant Unobservable Inputs (Level 3) | Derivatives, net | Interest rate derivatives | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Derivatives | (1) | 0 |
Significant Unobservable Inputs (Level 3) | Other Comprehensive Income (Loss) [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Other Comprehensive Income (Loss) [Member] | Contingent Consideration | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Liabilities | ||
Significant Unobservable Inputs (Level 3) | Other Comprehensive Income (Loss) [Member] | Equity securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Other Comprehensive Income (Loss) [Member] | Derivatives, net | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Derivatives | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Other Comprehensive Income (Loss) [Member] | Derivatives, net | Equity derivatives | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Derivatives | 0 | |
Significant Unobservable Inputs (Level 3) | Other Comprehensive Income (Loss) [Member] | Derivatives, net | Interest rate derivatives | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Derivatives | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Securities available-for-sale and other | Total fixed maturities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | (2) | (1) |
Significant Unobservable Inputs (Level 3) | Securities available-for-sale and other | Total fixed maturities | ABS | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Securities available-for-sale and other | Total fixed maturities | CMBS | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | 0 | (1) |
Significant Unobservable Inputs (Level 3) | Securities available-for-sale and other | Total fixed maturities | Corporate | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | (2) | 0 |
Significant Unobservable Inputs (Level 3) | Securities available-for-sale and other | Total fixed maturities | Debt Security, Government, Non-US [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Securities available-for-sale and other | Total fixed maturities | States, municipalities and political subdivisions | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Securities available-for-sale and other | Total fixed maturities | Residential mortgage-backed securities (RMBS) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Securities available-for-sale and other | Total fixed maturities | Other Comprehensive Income (Loss) [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | 10 | 28 |
Significant Unobservable Inputs (Level 3) | Securities available-for-sale and other | Total fixed maturities | Other Comprehensive Income (Loss) [Member] | ABS | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | 0 | 1 |
Significant Unobservable Inputs (Level 3) | Securities available-for-sale and other | Total fixed maturities | Other Comprehensive Income (Loss) [Member] | CMBS | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | 1 | 28 |
Significant Unobservable Inputs (Level 3) | Securities available-for-sale and other | Total fixed maturities | Other Comprehensive Income (Loss) [Member] | Corporate | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | 15 | (42) |
Significant Unobservable Inputs (Level 3) | Securities available-for-sale and other | Total fixed maturities | Other Comprehensive Income (Loss) [Member] | Debt Security, Government, Non-US [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | 1 | 0 |
Significant Unobservable Inputs (Level 3) | Securities available-for-sale and other | Total fixed maturities | Other Comprehensive Income (Loss) [Member] | States, municipalities and political subdivisions | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | 0 | 24 |
Significant Unobservable Inputs (Level 3) | Securities available-for-sale and other | Total fixed maturities | Other Comprehensive Income (Loss) [Member] | Residential mortgage-backed securities (RMBS) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | $ (7) | $ 17 |
Fair Value Measurements - Fai_3
Fair Value Measurements - Fair Value Option (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value Inputs and Valuation Techniques | |||
Fixed maturities, at fair value using the fair value option | $ 11 | $ 22 | |
Changes in fair value of assets using fair value option | 0 | ||
Corporate | |||
Fair Value Inputs and Valuation Techniques | |||
Changes in fair value of assets using fair value option | $ (1) | ||
Equity Securities [Member] | |||
Fair Value Inputs and Valuation Techniques | |||
Changes in fair value of assets using fair value option | $ 1 | ||
Real Estate Sector [Member] | |||
Fair Value Inputs and Valuation Techniques | |||
Fixed maturities, at fair value using the fair value option | $ 11 | 22 | |
Changes in fair value of assets using fair value option | $ (1) |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments Not Carried at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, carrying value | $ 70,817 | $ 62,307 |
Assets, fair value | 46,749 | 41,178 |
Liabilities, carrying value | 54,547 | 49,206 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 1,502 | 1,645 |
Significant Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 42,488 | 37,071 |
Carrying Amount | Significant Unobservable Inputs (Level 3) | Other policyholder funds and benefits payable | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, carrying value | 763 | 774 |
Carrying Amount | Significant Unobservable Inputs (Level 3) | Mortgage loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, carrying value | 4,215 | 3,704 |
Carrying Amount | Significant Observable Inputs (Level 2) | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, carrying value | 3,759 | 3,589 |
Carrying Amount | Significant Observable Inputs (Level 2) | Junior Subordinated Debentures | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, carrying value | 1,089 | 1,089 |
Fair Value | Significant Unobservable Inputs (Level 3) | Other policyholder funds and benefits payable | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, fair value | 765 | 775 |
Fair Value | Significant Unobservable Inputs (Level 3) | Mortgage loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 4,350 | 3,746 |
Fair Value | Significant Observable Inputs (Level 2) | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, fair value | 4,456 | 3,887 |
Fair Value | Significant Observable Inputs (Level 2) | Junior Subordinated Debentures | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, fair value | $ 1,153 | $ 1,052 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions | Jul. 29, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Servicing Asset, Measurement Input | $ 0 | |||
Business Combination, Contingent Consideration, Liability | 43 | |||
Liability [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Contingent Consideration, Liability, Current | 23 | |||
Paid [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Contingent Consideration, Liability | $ 20 | |||
Lattice | ||||
Business Acquisition [Line Items] | ||||
Contingent consideration | $ 60 | |||
Contingent consideration period | 4 years | |||
Lattice | Contingent Consideration | ||||
Business Acquisition [Line Items] | ||||
Discount rate | 11.80% | |||
Fair Value Measured at Net Asset Value Per Share [Member] | ||||
Business Acquisition [Line Items] | ||||
Deposit Assets | $ 38 | $ 0 | ||
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Contingent Consideration | ||||
Business Acquisition [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | 22 | $ 35 | $ 29 | |
AUM Value [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Contingent Consideration, Liability, Measurement Input [Extensible List] | 3,300 | |||
Forecast [Member] | AUM Value [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Contingent Consideration, Liability, Measurement Input [Extensible List] | $ 4,100 |
Investments - Net Investment In
Investments - Net Investment Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net Investment Income [Line Items] | |||
Investment expenses | $ (83) | $ (77) | $ (71) |
Total net investment income | 1,951 | 1,780 | 1,603 |
Total fixed maturities | |||
Net Investment Income [Line Items] | |||
Gross investment income | 1,559 | 1,459 | 1,303 |
Equity securities | |||
Net Investment Income [Line Items] | |||
Gross investment income | 46 | 32 | 24 |
Mortgage loans | |||
Net Investment Income [Line Items] | |||
Gross investment income | 165 | 141 | 124 |
Limited partnerships and other alternative investments | |||
Net Investment Income [Line Items] | |||
Gross investment income | 232 | 205 | 174 |
Other investments | |||
Net Investment Income [Line Items] | |||
Gross investment income | $ 32 | $ 20 | $ 49 |
Investments - Net Realized Capi
Investments - Net Realized Capital Gains (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Investments [Line Items] | |||
Gross gains on sales | $ 234 | $ 114 | $ 275 |
Gross losses on sales | (56) | (172) | (113) |
Net OTTI losses recognized in earnings | (3) | (1) | (8) |
Total net realized capital gains (losses) | 395 | (112) | 165 |
Equity Securities, FV-NI, Unrealized Gain (Loss) | 164 | (80) | |
Other investments | |||
Schedule of Investments [Line Items] | |||
Other, net | (35) | (5) | 12 |
Non-qualifying | |||
Schedule of Investments [Line Items] | |||
Non-qualifying foreign currency derivatives | (24) | (12) | (6) |
Non-qualifying | Other Credit Derivatives [Member] | |||
Schedule of Investments [Line Items] | |||
Non-qualifying foreign currency derivatives | (9) | 1 | 14 |
Foreign Currency Derivatives | Non-qualifying | |||
Schedule of Investments [Line Items] | |||
Non-qualifying foreign currency derivatives | 1 | 3 | (14) |
Equity Securities [Member] | |||
Schedule of Investments [Line Items] | |||
Debt and Equity Securities, Gain (Loss) | 254 | (48) | 0 |
Net OTTI losses recognized in earnings | (6) | ||
Mortgage loans | |||
Schedule of Investments [Line Items] | |||
Valuation allowances on mortgage loans | $ (1) | $ 0 | $ 1 |
Investments - Sales of Availabl
Investments - Sales of Available for Sale Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Securities, Available-for-sale [Line Items] | |||
Sale proceeds | $ 18,499 | $ 24,700 | $ 31,646 |
Gross gains | 234 | 114 | 275 |
Gross losses | (56) | (172) | (113) |
Fixed maturities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Sale proceeds | 14,421 | 21,327 | 17,614 |
Gross gains | 233 | 90 | 204 |
Gross losses | $ (56) | $ (169) | (90) |
Equity securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Sale proceeds | 607 | ||
Gross gains | 69 | ||
Gross losses | $ (23) |
Investments - Other Than Tempor
Investments - Other Than Temporary Impairment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||
Credit impairments | $ 3 | $ 1 | $ 2 |
Impairments on equity securities and other impairments | 3 | 1 | 8 |
Total impairments | 3 | 1 | 8 |
Cumulative Credit Impairments | |||
Beginning balance | (19) | (25) | (110) |
Additions for credit impairments recognized on: | |||
Securities not previously impaired | (3) | 0 | (1) |
Securities previously impaired | 0 | (1) | (1) |
Reductions for credit impairments previously recognized on: | |||
Securities that matured or were sold during the period | 3 | 7 | 76 |
Securities due to an increase in expected cash flows | 0 | 0 | 11 |
Ending balance | $ (19) | $ (19) | (25) |
Equity securities | |||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||
Impairments on equity securities and other impairments | $ 6 |
Investments - Available-for-Sal
Investments - Available-for-Sale Securities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, available-for-sale, at fair value, amortized cost | $ 40,078 | $ 35,603 |
Gross Unrealized Gains, fixed maturities, available-for-sale | 2,125 | 703 |
Gross Unrealized Losses, fixed maturities, available-for-sale | (55) | (654) |
Total fixed maturities | 42,148 | 35,652 |
Non-Credit OTTI | (4) | (5) |
Amortized Cost | ||
One year or less | 1,082 | 999 |
Over one year through five years | 7,200 | 5,786 |
Over five years through ten years | 7,395 | 6,611 |
Over ten years | 11,769 | 12,629 |
Subtotal | 27,446 | 26,025 |
Mortgage-backed and asset-backed securities | 12,632 | 9,578 |
Fair Value | ||
One year or less | 1,090 | 1,002 |
Over one year through five years | 7,401 | 5,791 |
Over five years through ten years | 7,803 | 6,495 |
Over ten years | 12,988 | 12,820 |
Subtotal | 29,282 | 26,108 |
Mortgage-backed and asset-backed securities | 12,866 | 9,544 |
ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, available-for-sale, at fair value, amortized cost | 1,461 | 1,272 |
Gross Unrealized Gains, fixed maturities, available-for-sale | 18 | 5 |
Gross Unrealized Losses, fixed maturities, available-for-sale | (3) | (1) |
Total fixed maturities | 1,476 | 1,276 |
Non-Credit OTTI | 0 | 0 |
Collateralized loan obligations (CLOs) | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, available-for-sale, at fair value, amortized cost | 2,186 | 1,455 |
Gross Unrealized Gains, fixed maturities, available-for-sale | 5 | 2 |
Gross Unrealized Losses, fixed maturities, available-for-sale | (8) | (20) |
Total fixed maturities | 2,183 | 1,437 |
Non-Credit OTTI | 0 | 0 |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, available-for-sale, at fair value, amortized cost | 4,210 | 3,581 |
Gross Unrealized Gains, fixed maturities, available-for-sale | 141 | 35 |
Gross Unrealized Losses, fixed maturities, available-for-sale | (13) | (64) |
Total fixed maturities | 4,338 | 3,552 |
Non-Credit OTTI | (4) | (5) |
Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, available-for-sale, at fair value, amortized cost | 16,435 | 13,696 |
Gross Unrealized Gains, fixed maturities, available-for-sale | 986 | 148 |
Gross Unrealized Losses, fixed maturities, available-for-sale | (25) | (446) |
Total fixed maturities | 17,396 | 13,398 |
Non-Credit OTTI | 0 | 0 |
Foreign government/government agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, available-for-sale, at fair value, amortized cost | 1,057 | 866 |
Gross Unrealized Gains, fixed maturities, available-for-sale | 66 | 7 |
Gross Unrealized Losses, fixed maturities, available-for-sale | 0 | (26) |
Total fixed maturities | 1,123 | 847 |
Non-Credit OTTI | 0 | 0 |
Municipal | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, available-for-sale, at fair value, amortized cost | 8,763 | 9,972 |
Gross Unrealized Gains, fixed maturities, available-for-sale | 737 | 421 |
Gross Unrealized Losses, fixed maturities, available-for-sale | (2) | (47) |
Total fixed maturities | 9,498 | 10,346 |
Non-Credit OTTI | 0 | 0 |
Residential mortgage-backed securities (RMBS) | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, available-for-sale, at fair value, amortized cost | 4,775 | 3,270 |
Gross Unrealized Gains, fixed maturities, available-for-sale | 97 | 44 |
Gross Unrealized Losses, fixed maturities, available-for-sale | (3) | (35) |
Total fixed maturities | 4,869 | 3,279 |
Non-Credit OTTI | 0 | 0 |
U.S. Treasuries | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, available-for-sale, at fair value, amortized cost | 1,191 | 1,491 |
Gross Unrealized Gains, fixed maturities, available-for-sale | 75 | 41 |
Gross Unrealized Losses, fixed maturities, available-for-sale | (1) | (15) |
Total fixed maturities | 1,265 | 1,517 |
Non-Credit OTTI | $ 0 | $ 0 |
Investments - Unrealized Losses
Investments - Unrealized Losses on AFS Securities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Amortized Cost | $ 401 | $ 566 |
Less Than 12 Months FV | 398 | 566 |
Less Than 12 Months UL | (3) | 0 |
12 Months or More Amortized Cost | 9 | 113 |
12 Months or More FV | 9 | 112 |
12 Months or More UL | 0 | (1) |
Total Amortized Cost | 410 | 679 |
Total FV | 407 | 678 |
Total UL | (3) | (1) |
Collateralized loan obligations (CLOs) | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Amortized Cost | 681 | 1,358 |
Less Than 12 Months FV | 679 | 1,338 |
Less Than 12 Months UL | (2) | (20) |
12 Months or More Amortized Cost | 929 | 7 |
12 Months or More FV | 923 | 7 |
12 Months or More UL | (6) | 0 |
Total Amortized Cost | 1,610 | 1,365 |
Total FV | 1,602 | 1,345 |
Total UL | (8) | (20) |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Amortized Cost | 545 | 896 |
Less Than 12 Months FV | 538 | 882 |
Less Than 12 Months UL | (7) | (14) |
12 Months or More Amortized Cost | 26 | 1,129 |
12 Months or More FV | 20 | 1,079 |
12 Months or More UL | (6) | (50) |
Total Amortized Cost | 571 | 2,025 |
Total FV | 558 | 1,961 |
Total UL | (13) | (64) |
Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Amortized Cost | 798 | 7,174 |
Less Than 12 Months FV | 789 | 6,903 |
Less Than 12 Months UL | (9) | (271) |
12 Months or More Amortized Cost | 344 | 2,541 |
12 Months or More FV | 328 | 2,366 |
12 Months or More UL | (16) | (175) |
Total Amortized Cost | 1,142 | 9,715 |
Total FV | 1,117 | 9,269 |
Total UL | (25) | (446) |
Foreign government/government agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Amortized Cost | 101 | 407 |
Less Than 12 Months FV | 101 | 391 |
Less Than 12 Months UL | 0 | (16) |
12 Months or More Amortized Cost | 29 | 203 |
12 Months or More FV | 29 | 193 |
12 Months or More UL | 0 | (10) |
Total Amortized Cost | 130 | 610 |
Total FV | 130 | 584 |
Total UL | 0 | (26) |
Municipal | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Amortized Cost | 224 | 1,643 |
Less Than 12 Months FV | 222 | 1,613 |
Less Than 12 Months UL | (2) | (30) |
12 Months or More Amortized Cost | 0 | 292 |
12 Months or More FV | 0 | 275 |
12 Months or More UL | 0 | (17) |
Total Amortized Cost | 224 | 1,935 |
Total FV | 222 | 1,888 |
Total UL | (2) | (47) |
Residential mortgage-backed securities (RMBS) | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Amortized Cost | 617 | 1,344 |
Less Than 12 Months FV | 614 | 1,329 |
Less Than 12 Months UL | (3) | (15) |
12 Months or More Amortized Cost | 68 | 648 |
12 Months or More FV | 68 | 628 |
12 Months or More UL | 0 | (20) |
Total Amortized Cost | 685 | 1,992 |
Total FV | 682 | 1,957 |
Total UL | (3) | (35) |
U.S. Treasuries | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Amortized Cost | 88 | 497 |
Less Than 12 Months FV | 88 | 492 |
Less Than 12 Months UL | 0 | (5) |
12 Months or More Amortized Cost | 35 | 339 |
12 Months or More FV | 34 | 329 |
12 Months or More UL | (1) | (10) |
Total Amortized Cost | 123 | 836 |
Total FV | 122 | 821 |
Total UL | (1) | (15) |
Securities available-for-sale and other | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Amortized Cost | 3,455 | 13,885 |
Less Than 12 Months FV | 3,429 | 13,514 |
Less Than 12 Months UL | (26) | (371) |
12 Months or More Amortized Cost | 1,440 | 5,272 |
12 Months or More FV | 1,411 | 4,989 |
12 Months or More UL | (29) | (283) |
Total Amortized Cost | 4,895 | 19,157 |
Total FV | 4,840 | 18,503 |
Total UL | $ (55) | $ (654) |
Investments - Mortgage Loans- V
Investments - Mortgage Loans- Valuation Allowance Activity (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | $ (1) | $ (1) | $ 0 |
Reversals/(Additions) | 1 | 0 | (1) |
Deductions | 0 | 0 | 0 |
Ending balance | $ 0 | $ (1) | $ (1) |
Investments - Commercial Mortga
Investments - Commercial Mortgage Loans Credit Quality (Details) $ in Millions | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | $ 4,215 | $ 3,704 |
Commercial Loan [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | $ 4,215 | $ 3,704 |
Avg. Debt-Service Coverage Ratio | 2.46 | 2.49 |
Commercial Loan [Member] | 65% - 80% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | $ 376 | $ 386 |
Avg. Debt-Service Coverage Ratio | 1.53 | 1.60 |
Commercial Loan [Member] | Less than 65% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | $ 3,839 | $ 3,318 |
Avg. Debt-Service Coverage Ratio | 2.56 | 2.59 |
Investments - Mortgage Loans by
Investments - Mortgage Loans by Region and Property Type (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 4,215 | $ 3,704 |
Percent of Total | 100.00% | 100.00% |
Industrial | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 1,167 | $ 1,108 |
Percent of Total | 27.70% | 29.90% |
Multifamily | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 1,313 | $ 1,138 |
Percent of Total | 31.20% | 30.70% |
Office | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 723 | $ 708 |
Percent of Total | 17.20% | 19.10% |
Retail | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 735 | $ 392 |
Percent of Total | 17.40% | 10.60% |
Residential Real Estate [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 137 | $ 82 |
Percent of Total | 3.20% | 2.20% |
Other | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 140 | $ 276 |
Percent of Total | 3.30% | 7.50% |
Mortgage loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percent of Total | 100.00% | 100.00% |
East North Central | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 270 | $ 250 |
East North Central | Mortgage loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percent of Total | 6.40% | 6.80% |
Middle Atlantic | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 319 | $ 270 |
Middle Atlantic | Mortgage loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percent of Total | 7.50% | 7.30% |
Mountain | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 109 | $ 30 |
Mountain | Mortgage loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percent of Total | 2.60% | 0.80% |
New England | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 344 | $ 330 |
New England | Mortgage loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percent of Total | 8.20% | 8.90% |
Pacific | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 906 | $ 917 |
Pacific | Mortgage loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percent of Total | 21.50% | 24.80% |
South Atlantic | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 944 | $ 712 |
South Atlantic | Mortgage loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percent of Total | 22.40% | 19.20% |
West North Central | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 46 | $ 148 |
West North Central | Mortgage loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percent of Total | 1.10% | 4.00% |
West South Central | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 439 | $ 420 |
West South Central | Mortgage loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percent of Total | 10.40% | 11.30% |
Other | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 838 | $ 627 |
Other | Mortgage loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percent of Total | 19.90% | 16.90% |
Investments - Securities Lendin
Investments - Securities Lending and Repurchase Agreements (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Securities Lending Transactions: | ||
Gross amount of securities on loan | $ 606 | $ 820 |
Gross amount of associated liability for collateral received | 621 | 840 |
Repurchase agreements: | ||
Gross amount of recognized liabilities for repurchase agreements | 0 | 72 |
Gross amount of collateral pledged related to repurchase agreements | 0 | 73 |
Securities for Reverse Repurchase Agreements | 15 | 64 |
Gross amount of associated liability for collateral received, securities | $ 34 | $ 3 |
Investments - Additional Inform
Investments - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Concentration Risk [Line Items] | ||||
Fair Value, Concentration of Risk, Investments | $ 0 | $ 0 | ||
AFS securities in an unrealized loss position | 871 | |||
Percentage of AFS securities depressed less than 20% of cost or amortized cost | 96.00% | |||
Mortgage loans | $ 4,215,000,000 | 3,704,000,000 | ||
Carrying Value | $ 0 | 1,000,000 | $ 1,000,000 | $ 0 |
Number of loans with extensions or restructuring | 0 | |||
LTV ratio | 52.00% | |||
LTV ratio at origination | 61.00% | |||
Loans serviced | $ 6,400,000,000 | 6,000,000,000 | ||
Loans serviced on behalf of third parties | 3,500,000 | 3,600,000,000 | ||
Servicing rights | 0 | 0 | ||
Maximum exposure to loss for variable interest | $ 1,100,000,000 | 1,000,000,000 | ||
Required collateral under securities lending | 100.00% | |||
Assets Held by Insurance Regulators | $ 2,300,000,000 | 2,200,000,000 | ||
Short-term investments | 2,921,000,000 | 4,283,000,000 | ||
Income (Loss) from Equity Method Investments | 267,000,000 | 214,000,000 | 168,000,000 | |
Equity method investments | 1,600,000,000 | |||
Commitments to fund limited partnership and alternative investments | $ 852,000,000 | |||
Aggregate investment income from limited partnerships and other alternative investments | 10.00% | |||
Net investment income | $ 1,951,000,000 | 1,780,000,000 | 1,603,000,000 | |
Limited Partner [Member] | ||||
Concentration Risk [Line Items] | ||||
Total assets | 329,400,000,000 | 311,000,000,000 | ||
Liabilities | 191,200,000,000 | 187,700,000,000 | ||
Net investment income | 618,000,000 | 773,000,000 | 1,900,000,000 | |
Net income (loss) | 13,400,000,000 | 12,300,000,000 | $ 9,800,000,000 | |
Fair Value Measured at Net Asset Value Per Share [Member] | ||||
Concentration Risk [Line Items] | ||||
Deposit Assets | $ 38,000,000 | 0 | ||
Minimum [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of fair value received at sale under repurchase agreements | 95.00% | |||
Maximum | ||||
Concentration Risk [Line Items] | ||||
Term of security lending agreement | 90 days | |||
Variable Interest Entity, Not Primary Beneficiary [Member] | ||||
Concentration Risk [Line Items] | ||||
Commitments for variable interest | $ 851,000,000 | 718,000,000 | ||
Investments [Member] | ||||
Concentration Risk [Line Items] | ||||
Loans serviced on behalf of third parties, retained and reported as assets | $ 2,900,000,000 | 2,400,000,000 | ||
SEC Schedule, 12-09, Allowance, Loan and Lease Loss [Member] | ||||
Concentration Risk [Line Items] | ||||
Mortgage loans | $ 23,000,000 | |||
Number of loans with an allowance | 0 | |||
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | ||||
Concentration Risk [Line Items] | ||||
Number of loans with an allowance | 0 | |||
Number of loans held-for-sale | 0 | |||
Commercial Loan [Member] | ||||
Concentration Risk [Line Items] | ||||
Mortgage loans | $ 4,215,000,000 | $ 3,704,000,000 | ||
Carrying Value | 0 | 1,000,000 | ||
Commercial Loan [Member] | Amortized Cost [Member] | ||||
Concentration Risk [Line Items] | ||||
Mortgage loans | 4,200,000,000 | 3,700,000,000 | ||
U.S. Treasuries | ||||
Concentration Risk [Line Items] | ||||
Debt Securities, Available-for-sale, Restricted | $ 37,000,000 | $ 47,000,000 | ||
Financial Services Sector [Member] | ||||
Concentration Risk [Line Items] | ||||
Largest exposure by sector, percent of invested assets | 8.00% | 7.00% | ||
Municipal | ||||
Concentration Risk [Line Items] | ||||
Largest exposure by sector, percent of invested assets | 18.00% | 22.00% | ||
CMBS | ||||
Concentration Risk [Line Items] | ||||
Largest exposure by sector, percent of invested assets | 9.00% | 8.00% | ||
Mortgage loans | Commercial Loan [Member] | ||||
Concentration Risk [Line Items] | ||||
Mortgage loans past due by 90 days or more | 0 | 0 | ||
Domestic [Member] | ||||
Concentration Risk [Line Items] | ||||
Collateral provided by borrowers under securities lending | 102.00% | |||
Non-domestic [Member] | ||||
Concentration Risk [Line Items] | ||||
Collateral provided by borrowers under securities lending | 105.00% | |||
Fixed maturities | ||||
Concentration Risk [Line Items] | ||||
Debt Securities, Available-for-sale, Restricted | $ 447,000,000 | |||
Short-term Investments [Member] | ||||
Concentration Risk [Line Items] | ||||
Short-term investments | $ 189,000,000 | |||
Government of United Kingdom [Member] | Debt Security, Government, Non-US [Member] | ||||
Concentration Risk [Line Items] | ||||
Largest exposure by issuer, percent of invested assets (less than) | 1.00% | |||
New York State Dormitory Authority [Member] | Municipal | ||||
Concentration Risk [Line Items] | ||||
Largest exposure by issuer, percent of invested assets (less than) | 1.00% | 1.00% | ||
Wells Fargo & Company [Member] | ||||
Concentration Risk [Line Items] | ||||
Largest exposure by issuer, percent of invested assets (less than) | 1.00% | |||
New York Transitional Authority [Member] | Municipal | ||||
Concentration Risk [Line Items] | ||||
Largest exposure by issuer, percent of invested assets (less than) | 1.00% | |||
Commonwealth Massachusetts [Member] | Municipal | ||||
Concentration Risk [Line Items] | ||||
Largest exposure by issuer, percent of invested assets (less than) | 1.00% |
Derivatives - Derivative Balanc
Derivatives - Derivative Balance Sheet Classification (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | $ 13,706 | $ 12,291 |
Fair Value | (66) | (61) |
Asset Derivatives | 40 | 31 |
Liability Derivatives | (106) | (92) |
Fixed maturities, available-for-sale | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 244 | 153 |
Fair Value | 0 | 0 |
Asset Derivatives | 0 | 0 |
Liability Derivatives | 0 | 0 |
Other investments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 1,277 | 9,864 |
Fair Value | 12 | 7 |
Asset Derivatives | 13 | 23 |
Liability Derivatives | (1) | (16) |
Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 12,185 | 2,274 |
Fair Value | (78) | (68) |
Asset Derivatives | 27 | 8 |
Liability Derivatives | (105) | (76) |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 2,310 | 2,193 |
Fair Value | (1) | (5) |
Asset Derivatives | 4 | 4 |
Liability Derivatives | (5) | (9) |
Designated as Hedging Instrument | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 2,040 | 2,040 |
Fair Value | 0 | 1 |
Asset Derivatives | 1 | 2 |
Liability Derivatives | (1) | (1) |
Designated as Hedging Instrument | Foreign currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 270 | 153 |
Fair Value | (1) | (6) |
Asset Derivatives | 3 | 2 |
Liability Derivatives | (4) | (8) |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 11,396 | 10,098 |
Fair Value | (65) | (56) |
Asset Derivatives | 36 | 27 |
Liability Derivatives | (101) | (83) |
Not Designated as Hedging Instrument | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 7,600 | 7,100 |
Not Designated as Hedging Instrument | Interest rate swaps and futures | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 9,338 | 8,451 |
Fair Value | (59) | (62) |
Asset Derivatives | 3 | 8 |
Liability Derivatives | (62) | (70) |
Not Designated as Hedging Instrument | Foreign currency swaps and forwards | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 464 | 287 |
Fair Value | (1) | (1) |
Asset Derivatives | 0 | 0 |
Liability Derivatives | (1) | (1) |
Not Designated as Hedging Instrument | Credit derivatives that purchase credit protection | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 124 | 6 |
Fair Value | (3) | 0 |
Asset Derivatives | 0 | 0 |
Liability Derivatives | (3) | 0 |
Not Designated as Hedging Instrument | Credit derivatives that assume credit risk | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 500 | 1,102 |
Fair Value | 13 | 3 |
Asset Derivatives | 13 | 8 |
Liability Derivatives | 0 | (5) |
Not Designated as Hedging Instrument | Credit derivatives in offsetting positions | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 29 | 41 |
Fair Value | 0 | 0 |
Asset Derivatives | 5 | 6 |
Liability Derivatives | (5) | (6) |
Not Designated as Hedging Instrument | Equity index swaps and options | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 941 | 211 |
Fair Value | (15) | 4 |
Asset Derivatives | 15 | 5 |
Liability Derivatives | $ (30) | $ (1) |
Derivatives - Offsetting Deriva
Derivatives - Offsetting Derivative Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Asset Derivatives | $ 40 | $ 31 |
Derivative assets | 12 | 7 |
Gross Amounts of Recognized (Liabilities) | (106) | (92) |
Derivative liabilities | (78) | (68) |
Derivative Liabilities | ||
Derivative [Line Items] | ||
Derivative, Collateral, Obligation to Return Cash | (5) | (4) |
Gross Amounts of Recognized (Liabilities) | (106) | (92) |
Gross Amounts Offset in the Statement of Financial Position, liabilities | (23) | (20) |
Derivative liabilities | (78) | (68) |
Financial Collateral (Received) | (73) | (65) |
Net amount, liabilities | (10) | (7) |
Derivative Assets | ||
Derivative [Line Items] | ||
Asset Derivatives | 40 | 31 |
Gross Amounts Offset in the Statement of Financial Position, assets | 37 | 26 |
Derivative assets | 12 | 7 |
Derivative, Collateral, Obligation to Return Cash | (9) | (2) |
Financial Collateral Pledged | 1 | 2 |
Net Amount, assets | $ 2 | $ 3 |
Derivatives - Cash Flow Hedges
Derivatives - Cash Flow Hedges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Realized Investment Gains (Losses) | $ 395 | $ (112) | $ 165 |
Net investment income | 1,951 | 1,780 | 1,603 |
Interest Expense | 259 | 298 | 316 |
Interest rate swaps | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Net investment income | 4 | 30 | 37 |
Interest Expense | 1 | 0 | 0 |
Foreign currency swaps | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Net investment income | 3 | 0 | 0 |
Designated as Hedging Instrument | Cash Flow Hedging | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain (Loss) Recognized in OCI on Derivative | 26 | 12 | (6) |
Designated as Hedging Instrument | Cash Flow Hedging | Reclassification out of Accumulated Other Comprehensive Income | Interest rate swaps | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain Reclassified from AOCI into Income | 2 | 6 | 5 |
Designated as Hedging Instrument | Cash Flow Hedging | Reclassification out of Accumulated Other Comprehensive Income | Foreign currency swaps | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain Reclassified from AOCI into Income | 7 | 30 | 37 |
Designated as Hedging Instrument | Cash Flow Hedging | Reclassification out of Accumulated Other Comprehensive Income | Interest Expense [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain Reclassified from AOCI into Income | 1 | 0 | 0 |
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate swaps | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain (Loss) Recognized in OCI on Derivative | 18 | 5 | 8 |
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate swaps | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | Interest rate swaps | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain Reclassified from AOCI into Income | 2 | 6 | 5 |
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate swaps | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | Foreign currency swaps | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain Reclassified from AOCI into Income | 4 | 30 | 37 |
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate swaps | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | Interest Expense [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain Reclassified from AOCI into Income | 1 | 0 | 0 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency swaps | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain (Loss) Recognized in OCI on Derivative | 8 | 7 | (14) |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency swaps | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | Interest rate swaps | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain Reclassified from AOCI into Income | 0 | 0 | 0 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency swaps | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | Foreign currency swaps | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain Reclassified from AOCI into Income | 3 | 0 | 0 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency swaps | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | Interest Expense [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain Reclassified from AOCI into Income | $ 0 | $ 0 | $ 0 |
Derivatives - Fair Value Hedges
Derivatives - Fair Value Hedges - Non-qualifying Strategies (Details) - Not Designated as Hedging Instrument - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Non-qualifying foreign currency derivatives | $ (24) | $ (12) | $ (6) |
Interest rate swaps, swaptions and futures | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Non-qualifying foreign currency derivatives | (35) | (3) | (5) |
Credit derivatives | Credit derivatives that purchase credit protection | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Non-qualifying foreign currency derivatives | (5) | 0 | 28 |
Credit derivatives | Credit derivatives that assume credit risk | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Non-qualifying foreign currency derivatives | 32 | (14) | (7) |
Equity index swaps and options | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Non-qualifying foreign currency derivatives | (17) | 2 | (7) |
Foreign Exchange Forward [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Non-qualifying foreign currency derivatives | 1 | 3 | (14) |
Contingent capital facility put option | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Non-qualifying foreign currency derivatives | $ 0 | $ 0 | $ (1) |
Derivatives - Credit Risk Assum
Derivatives - Credit Risk Assumed through Credit Derivatives (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Credit Derivatives [Line Items] | ||
Derivative, Notional Amount | $ 13,706 | $ 12,291 |
Fair Value | (66) | (61) |
Credit derivatives | ||
Credit Derivatives [Line Items] | ||
Derivative, Notional Amount | 515 | 1,123 |
Fair Value | 8 | (3) |
Offsetting Notional Amount | 15 | 21 |
Offsetting Fair Value | 5 | 6 |
Credit derivatives | Single name credit default swaps | A Minus | Investment grade risk exposure | ||
Credit Derivatives [Line Items] | ||
Derivative, Notional Amount | 100 | |
Fair Value | $ 3 | |
Weighted Average Years to Maturity | 5 years | |
Offsetting Notional Amount | $ 0 | |
Offsetting Fair Value | 0 | |
Credit derivatives | Single name credit default swaps | A | Investment grade risk exposure | ||
Credit Derivatives [Line Items] | ||
Derivative, Notional Amount | 169 | |
Fair Value | $ 2 | |
Weighted Average Years to Maturity | 4 years | |
Offsetting Notional Amount | $ 0 | |
Offsetting Fair Value | 0 | |
Credit derivatives | Basket credit default swaps | A Minus | Investment grade risk exposure | ||
Credit Derivatives [Line Items] | ||
Derivative, Notional Amount | 11 | |
Fair Value | $ 0 | |
Weighted Average Years to Maturity | 5 years | |
Offsetting Notional Amount | $ 2 | |
Offsetting Fair Value | 0 | |
Credit derivatives | Basket credit default swaps | BBB Plus | Investment grade risk exposure | ||
Credit Derivatives [Line Items] | ||
Derivative, Notional Amount | 400 | 799 |
Fair Value | $ 10 | $ (1) |
Weighted Average Years to Maturity | 5 years | 6 years |
Offsetting Notional Amount | $ 0 | $ 0 |
Offsetting Fair Value | 0 | 0 |
Credit derivatives | Basket credit default swaps | A | Investment grade risk exposure | ||
Credit Derivatives [Line Items] | ||
Derivative, Notional Amount | 1 | |
Fair Value | $ 0 | |
Average Term of Credit Risk Derivatives Less than 1 Year | Less than 1 year | |
Offsetting Notional Amount | $ 1 | |
Offsetting Fair Value | 0 | |
Credit derivatives | Basket credit default swaps | CCC Minus | Below investment grade risk exposure | ||
Credit Derivatives [Line Items] | ||
Derivative, Notional Amount | 14 | |
Fair Value | $ (5) | |
Average Term of Credit Risk Derivatives Less than 1 Year | Less than 1 year | |
Offsetting Notional Amount | $ 14 | |
Offsetting Fair Value | $ 5 | |
Credit derivatives | Basket credit default swaps | B Plus | Below investment grade risk exposure | ||
Credit Derivatives [Line Items] | ||
Derivative, Notional Amount | 125 | |
Fair Value | $ 2 | |
Weighted Average Years to Maturity | 5 years | |
Offsetting Notional Amount | $ 0 | |
Offsetting Fair Value | 0 | |
Credit derivatives | Basket credit default swaps | CCC | Below investment grade risk exposure | ||
Credit Derivatives [Line Items] | ||
Derivative, Notional Amount | 19 | |
Fair Value | $ (6) | |
Average Term of Credit Risk Derivatives Less than 1 Year | Less than 1 year | |
Offsetting Notional Amount | $ 19 | |
Offsetting Fair Value | $ 6 |
Derivatives - Additional Inform
Derivatives - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 08, 2017 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, Notional Amount | $ 13,706,000,000 | $ 12,291,000,000 | ||
Net reclassifications from AOCI to earnings resulting from the discontinuance of cash-flow hedges due to forecasted transactions that were no longer probable of occurring | 0 | $ 0 | ||
Derivative, Collateral, Right to Reclaim Cash | 1,000,000 | 4,000,000 | ||
Pledged collateral, securities | 78,000,000 | 67,000,000 | ||
Cash collateral held | 16,000,000 | 9,000,000 | ||
Securities collateral held or repledged | 1,000,000 | 5,000,000 | ||
Collateral Securities Repledged, Delivered, or Used | 0 | $ 0 | ||
Fair Value of Securities Received as Collateral that Have Been Resold or Repledged | 0 | |||
Information about Sources and Uses of Collateral that is Received Through Resale Agreements and Securities Borrowing Agreements | not sell any securities held as collateral | |||
Over the Counter [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Pledged collateral, securities | 88,000,000 | $ 89,000,000 | ||
Reclassification out of Accumulated Other Comprehensive Income | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Net reclassifications from AOCI to earnings resulting from the discontinuance of cash-flow hedges due to forecasted transactions that were no longer probable of occurring | 0 | |||
Accumulated Other Comprehensive Income (Loss), net of tax | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Deferred net gains on derivative instruments recorded in AOCI that are expected to be reclassified to earnings during the next twelve months | 16,000,000 | |||
Designated as Hedging Instrument | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, Notional Amount | 2,310,000,000 | 2,193,000,000 | ||
Designated as Hedging Instrument | Interest rate swaps | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, Notional Amount | 2,040,000,000 | 2,040,000,000 | ||
Not Designated as Hedging Instrument | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, Notional Amount | 11,396,000,000 | 10,098,000,000 | ||
Not Designated as Hedging Instrument | Interest rate swaps | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, Notional Amount | $ 7,600,000,000 | $ 7,100,000,000 | ||
Not Designated as Hedging Instrument | Contingent capital facility put option | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Junior Subordinated Debentures | $ 500,000,000 | |||
Maximum [Member] | Not Designated as Hedging Instrument | Contingent capital facility put option | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, Notional Amount | $ 500,000,000 |
Reinsurance - Additional Inform
Reinsurance - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Corporate | |||
Reinsurance Recoverable, Allowance for Credit Loss | $ 0 | $ 0 | |
Property and Casualty Insurance Products | |||
Policyholder Benefits and Claims Incurred, Ceded | 826 | 661 | $ 901 |
Group Benefits [Member] | |||
Policyholder Benefits and Claims Incurred, Ceded | 73 | 116 | $ 120 |
Reinsurance Recoverable, Allowance for Credit Loss | $ 0 | $ 0 |
Reinsurance - Reinsurance Recov
Reinsurance - Reinsurance Recoverables (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Ceded Credit Risk [Line Items] | ||
Reinsurance recoverables, net | $ 5,527 | $ 4,357 |
Corporate | ||
Ceded Credit Risk [Line Items] | ||
Allowance for uncollectible reinsurance | 0 | 0 |
Reinsurance recoverables, net | 320 | 332 |
Property and Casualty Insurance Products | Operating Segments | ||
Ceded Credit Risk [Line Items] | ||
Paid loss and loss adjustment expenses | 249 | 127 |
Unpaid loss and loss adjustment expenses | 4,819 | 3,773 |
Gross reinsurance recoverables | 5,068 | 3,900 |
Allowance for uncollectible reinsurance | (114) | (126) |
Reinsurance recoverables, net | 4,954 | 3,774 |
Group Benefits [Member] | ||
Ceded Credit Risk [Line Items] | ||
Allowance for uncollectible reinsurance | 0 | 0 |
Group Benefits [Member] | Operating Segments | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance recoverables, net | $ 253 | $ 251 |
Reinsurance - Insurance Revenue
Reinsurance - Insurance Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Premiums Earned | |||
Direct | $ 16,132 | $ 14,439 | $ 14,204 |
Assumed | 1,988 | 2,265 | 678 |
Ceded | (1,027) | (660) | (650) |
Premiums Earned, Net | 16,923 | 15,869 | 14,141 |
Property and Casualty Insurance Products | |||
Premiums Written | |||
Direct | 12,190 | 10,784 | 10,865 |
Assumed | 371 | 217 | 223 |
Ceded | (978) | (593) | (571) |
Net | 11,583 | 10,408 | 10,517 |
Premiums Earned | |||
Direct | 12,010 | 10,824 | 10,923 |
Assumed | 416 | 221 | 232 |
Ceded | (936) | (599) | (600) |
Net | 11,490 | 10,446 | 10,555 |
Premiums Earned, Net | 11,490 | 10,446 | 10,555 |
Group Benefits [Member] | |||
Premiums Earned | |||
Direct | 4,122 | 3,615 | 3,281 |
Assumed | 1,572 | 2,044 | 446 |
Ceded | (91) | (61) | (50) |
Premiums Earned, Net | $ 5,603 | $ 5,598 | $ 3,677 |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Balance, beginning of period | $ 670 | $ 650 | $ 645 |
Deferred costs | 1,635 | 1,404 | 1,377 |
Amortization — DAC | (1,622) | (1,384) | (1,372) |
Finite-Lived Intangible Assets, Accumulated Amortization | (299) | (132) | |
Balance, end of period | 785 | 670 | 650 |
Customer Relationships [Member] | |||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Finite-Lived Intangible Assets, Accumulated Amortization | (92) | (49) | |
The Navigators Group, Inc. [Member] | Customer Relationships [Member] | |||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 102 | $ 0 | $ 0 |
Goodwill & Other Intangible A_3
Goodwill & Other Intangible Assets - Goodwill Carrying Value (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Goodwill [Roll Forward] | |||
Beginning balance | $ 1,290,000,000 | $ 1,290,000,000 | |
Goodwill related to acquisitions | 623,000,000 | 0 | |
Ending balance | 1,913,000,000 | 1,290,000,000 | $ 1,290,000,000 |
Goodwill, Impairment Loss | $ 0 | 0 | 0 |
Number of Reporting Units | 5 | ||
Operating Segments | Property and Casualty, Commercial Insurance [Member] | |||
Goodwill [Roll Forward] | |||
Beginning balance | $ 38,000,000 | 38,000,000 | |
Goodwill related to acquisitions | 623,000,000 | 0 | |
Ending balance | 661,000,000 | 38,000,000 | 38,000,000 |
Operating Segments | Property and Casualty, Personal Insurance [Member] | |||
Goodwill [Roll Forward] | |||
Beginning balance | 119,000,000 | 119,000,000 | |
Goodwill related to acquisitions | 0 | 0 | |
Ending balance | 119,000,000 | 119,000,000 | 119,000,000 |
Operating Segments | Mutual Fund [Member] | |||
Goodwill [Roll Forward] | |||
Beginning balance | 180,000,000 | 180,000,000 | |
Goodwill related to acquisitions | 0 | 0 | |
Ending balance | 180,000,000 | 180,000,000 | 180,000,000 |
Operating Segments | Group Benefits | |||
Goodwill [Roll Forward] | |||
Beginning balance | 723,000,000 | 723,000,000 | |
Goodwill related to acquisitions | 0 | 0 | |
Ending balance | 723,000,000 | 723,000,000 | 723,000,000 |
Corporate | |||
Goodwill [Roll Forward] | |||
Beginning balance | 230,000,000 | 230,000,000 | |
Goodwill related to acquisitions | 0 | 0 | |
Ending balance | 230,000,000 | 230,000,000 | 230,000,000 |
Corporate | Mutual Fund [Member] | |||
Goodwill [Roll Forward] | |||
Beginning balance | 92,000,000 | 92,000,000 | |
Ending balance | 92,000,000 | 92,000,000 | 92,000,000 |
Corporate | Group Benefits | |||
Goodwill [Roll Forward] | |||
Beginning balance | 138,000,000 | 138,000,000 | |
Ending balance | $ 138,000,000 | $ 138,000,000 | $ 138,000,000 |
Goodwill & Other Intangible A_4
Goodwill & Other Intangible Assets - Other Intangible Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Amortized Intangible Assets: | |||
Finite-Lived Intangible Assets, Gross | $ 1,274,000,000 | $ 775,000,000 | |
Accumulated Amortization | (299,000,000) | (132,000,000) | |
Net Carrying Amount | 975,000,000 | 643,000,000 | |
Total Indefinite Life Intangible Assets [5] | 95,000,000 | 14,000,000 | |
Total Other Intangible Assets | 1,369,000,000 | 789,000,000 | |
Total Other Intangible Assets | 1,070,000,000 | 657,000,000 | |
Value of in-force contracts [1] | |||
Amortized Intangible Assets: | |||
Finite-Lived Intangible Assets, Gross | 203,000,000 | 23,000,000 | |
Accumulated Amortization | (125,000,000) | (23,000,000) | |
Net Carrying Amount | 78,000,000 | 0 | |
Value of in-force contracts [1] | The Navigators Group, Inc. [Member] | |||
Amortized Intangible Assets: | |||
Finite-lived Intangible Assets Acquired | $ 180 | ||
Finite-Lived Intangible Asset, Useful Life | 3 years | ||
Customer relationships [2] | |||
Amortized Intangible Assets: | |||
Finite-Lived Intangible Assets, Gross | $ 636,000,000 | 636,000,000 | |
Accumulated Amortization | (92,000,000) | (49,000,000) | |
Net Carrying Amount | 544,000,000 | 587,000,000 | |
Customer relationships [2] | The Navigators Group, Inc. [Member] | |||
Amortized Intangible Assets: | |||
Accumulated Amortization | 102,000,000 | 0 | $ 0 |
Customer relationships [2] | Foremost [Domain] | |||
Amortized Intangible Assets: | |||
Finite-lived Intangible Assets Acquired | $ 46,000,000 | ||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||
Marketing agreement with Aetna | |||
Amortized Intangible Assets: | |||
Finite-Lived Intangible Assets, Gross | 16,000,000 | $ 16,000,000 | |
Accumulated Amortization | (2,000,000) | (1,000,000) | |
Net Carrying Amount | 14,000,000 | 15,000,000 | |
Distribution Agreement | |||
Amortized Intangible Assets: | |||
Finite-Lived Intangible Assets, Gross | 79,000,000 | 79,000,000 | |
Accumulated Amortization | (61,000,000) | (56,000,000) | |
Net Carrying Amount | 18,000,000 | 23,000,000 | |
Distribution and Agency relationships & Other [3] [4] | |||
Amortized Intangible Assets: | |||
Finite-Lived Intangible Assets, Gross | 340,000,000 | 21,000,000 | |
Accumulated Amortization | (19,000,000) | (3,000,000) | |
Net Carrying Amount | 321,000,000 | 18,000,000 | |
Distribution and Agency relationships & Other [3] [4] | Y-Risk [Domain] | |||
Amortized Intangible Assets: | |||
Finite-lived Intangible Assets Acquired | $ 12,000,000 | ||
Finite-Lived Intangible Asset, Useful Life | 15 years | ||
Distribution relationships [Member] | The Navigators Group, Inc. [Member] | |||
Amortized Intangible Assets: | |||
Finite-lived Intangible Assets Acquired | $ 302 | ||
Finite-Lived Intangible Asset, Useful Life | 15 years | ||
Trade Names [Member] | The Navigators Group, Inc. [Member] | |||
Amortized Intangible Assets: | |||
Finite-lived Intangible Assets Acquired | $ 17 | ||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||
License [Member] | The Navigators Group, Inc. [Member] | |||
Amortized Intangible Assets: | |||
Indefinite-lived Intangible Assets Acquired | $ 15 | ||
Lloyd's Syndicate Capacity [Member] | The Navigators Group, Inc. [Member] | |||
Amortized Intangible Assets: | |||
Indefinite-lived Intangible Assets Acquired | $ 66 |
Goodwill & Other Intangible A_5
Goodwill & Other Intangible Assets - Expected Future Amortization Expense (Details) $ in Millions | Dec. 31, 2019USD ($) |
Value of in-force contracts [1] | |
Finite-Lived Intangible Assets [Line Items] | |
2020 | $ 47 |
2021 | 21 |
2022 | 10 |
2023 | 0 |
2024 | 0 |
Other Intangible Assets [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
2020 | 74 |
2021 | 74 |
2022 | 74 |
2023 | 74 |
2024 | $ 74 |
Reserve for Unpaid Losses and_3
Reserve for Unpaid Losses and Loss Adjustment Expenses - P&C Liabilities for Unpaid Losses and Loss Adjustment Expenses (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | May 23, 2019 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
Beginning liabilities for unpaid losses and loss adjustment expenses, gross | $ 33,029,000,000 | |||
Provision for unpaid losses and loss adjustment expenses | ||||
Change in Deferred Gain on Retroactive Reinsurance | (16,000,000) | $ 0 | $ 0 | |
Payments | ||||
Ending liabilities for unpaid losses and loss adjustment expenses, gross | 36,517,000,000 | 33,029,000,000 | ||
Property and Casualty Insurance Products | ||||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
Beginning liabilities for unpaid losses and loss adjustment expenses, gross | 24,584,000,000 | 23,775,000,000 | 22,545,000,000 | |
Reinsurance and other recoverables | 4,232,000,000 | 3,957,000,000 | 3,488,000,000 | |
Beginning liabilities for unpaid losses and loss adjustment expenses, net | 20,352,000,000 | 19,818,000,000 | 19,057,000,000 | |
Provision for unpaid losses and loss adjustment expenses | ||||
Total provision for unpaid losses and loss adjustment expenses | 7,398,000,000 | 6,940,000,000 | 7,340,000,000 | |
Payments | ||||
Current accident year | (2,374,000,000) | (2,452,000,000) | (2,751,000,000) | |
Prior accident years | (4,374,000,000) | (3,954,000,000) | (3,828,000,000) | |
Liability for Unpaid Claims and Claims Adjustment Expense, Foreign Currency Translation Gain (Loss) | (1,000,000) | 0 | 0 | |
Ending liabilities for unpaid losses and loss adjustment expenses, net | 22,986,000,000 | 20,352,000,000 | 19,818,000,000 | |
Reinsurance and other recoverables | 5,275,000,000 | 4,232,000,000 | 3,957,000,000 | |
Ending liabilities for unpaid losses and loss adjustment expenses, gross | $ 28,261,000,000 | 24,584,000,000 | 23,775,000,000 | |
Property and Casualty Insurance Products | The Navigators Group, Inc. [Member] | ||||
Product Information [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Reserves net Reinsurance and Other Recoverables | $ 0 | $ 0 | $ 2,001,000,000 |
Reserve for Unpaid Losses and_4
Reserve for Unpaid Losses and Loss Adjustment Expenses - Discounted Reserves, P&C (Details) - Property and Casualty Insurance Products - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Weighted Average Discount Rate [Line Items] | |||
Liability for unpaid losses and loss adjustment expenses, at undiscounted amounts | $ 1,331 | $ 1,331 | $ 1,387 |
Amount of discount | 388 | 388 | 410 |
Carrying value of liability for unpaid losses and loss adjustment expenses | 943 | 943 | 977 |
Discount accretion included in losses and loss adjustment expenses | $ 33 | $ 40 | $ 30 |
Financial Guarantee Insurance Contracts, Claim Liability, Weighted Average Risk Free Discount Rate | 2.91% | 2.98% | 3.06% |
Minimum | |||
Weighted Average Discount Rate [Line Items] | |||
Range of discount rates | 1.76% | 1.77% | 1.77% |
Maximum | |||
Weighted Average Discount Rate [Line Items] | |||
Range of discount rates | 14.03% | 14.15% | 14.15% |
Reserve for Unpaid Losses and_5
Reserve for Unpaid Losses and Loss Adjustment Expenses - Prior Accident Years Reserve Development (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Prior accident years reserve development | |||
Change in Deferred Gain on Retroactive Reinsurance | $ 16,000,000 | $ 0 | $ 0 |
Workers’ compensation | |||
Prior accident years reserve development | |||
Prior accident year development [1] | (120,000,000) | (164,000,000) | (79,000,000) |
Workers’ compensation discount accretion | |||
Prior accident years reserve development | |||
Prior accident year development [1] | 33,000,000 | 40,000,000 | 28,000,000 |
General liability | |||
Prior accident years reserve development | |||
Prior accident year development [1] | 61,000,000 | 52,000,000 | 11,000,000 |
Marine [Member] | |||
Prior accident years reserve development | |||
Prior accident year development [1] | 8,000,000 | 0 | 0 |
Package business | |||
Prior accident years reserve development | |||
Prior accident year development [1] | (47,000,000) | (26,000,000) | (25,000,000) |
Property | |||
Prior accident years reserve development | |||
Prior accident year development [1] | 3,000,000 | (25,000,000) | (14,000,000) |
Professional liability | |||
Prior accident years reserve development | |||
Prior accident year development [1] | 29,000,000 | (12,000,000) | 1,000,000 |
Bond | |||
Prior accident years reserve development | |||
Prior accident year development [1] | (3,000,000) | 2,000,000 | 32,000,000 |
Assumed Reinsurance [Member] | |||
Prior accident years reserve development | |||
Prior accident year development [1] | 3,000,000 | 0 | 0 |
Net asbestos reserves | |||
Prior accident years reserve development | |||
Prior accident year development [1] | 0 | 0 | 0 |
Net environmental reserves | |||
Prior accident years reserve development | |||
Prior accident year development [1] | 0 | 0 | 0 |
Catastrophes | |||
Prior accident years reserve development | |||
Prior accident year development [1] | (42,000,000) | (49,000,000) | (16,000,000) |
Uncollectible reinsurance | |||
Prior accident years reserve development | |||
Prior accident year development [1] | (30,000,000) | 22,000,000 | (15,000,000) |
Other | |||
Prior accident years reserve development | |||
Prior accident year development [1] | 46,000,000 | 38,000,000 | 27,000,000 |
Property and Casualty Insurance Products | |||
Prior accident years reserve development | |||
Prior accident year development [1] | (65,000,000) | (167,000,000) | (41,000,000) |
Prior Year Claims and Claims Adjustment Expense, net of retroactive reinsurance benefit | (81,000,000) | (167,000,000) | (41,000,000) |
PG&E [Member] | Portion of Expected Class Settlement Due to HIG [Member] | Minimum [Member] | |||
Prior accident years reserve development | |||
Gain Contingency, Unrecorded Amount | 300,000,000 | ||
PG&E [Member] | Portion of Expected Class Settlement Due to HIG [Member] | Maximum | |||
Prior accident years reserve development | |||
Gain Contingency, Unrecorded Amount | 325,000,000 | ||
Property and Casualty, Commercial Insurance [Member] | Property | |||
Prior accident years reserve development | |||
Prior accident year development [1] | (11,000,000) | (12,000,000) | (8,000,000) |
Property and Casualty, Commercial Insurance [Member] | Automobile liability | |||
Prior accident years reserve development | |||
Prior accident year development [1] | 27,000,000 | (15,000,000) | 17,000,000 |
Property and Casualty, Personal Insurance [Member] | Automobile liability | |||
Prior accident years reserve development | |||
Prior accident year development [1] | $ (38,000,000) | $ (18,000,000) | $ 0 |
Reserve for Unpaid Losses and_6
Reserve for Unpaid Losses and Loss Adjustment Expenses - Additional Information (Details) - USD ($) | 3 Months Ended | 7 Months Ended | 12 Months Ended | 36 Months Ended | ||||
Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2019 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||
Current accident year benefit from discounting property and casualty reserves | $ 33,000,000 | $ 12,000,000 | $ 15,000,000 | |||||
Salvage and Subrogation Recoveries, Value | $ 57,000,000 | $ 57,000,000 | 57,000,000 | $ 57,000,000 | ||||
Prepaid Reinsurance Premiums | 57,000,000 | 57,000,000 | 57,000,000 | 57,000,000 | ||||
Liability for Future Policy Benefit, Adverse Development, Expense | 238,000,000 | 285,000,000 | ||||||
Reinsurance Recoverable, Guarantee Benefit | 238,000,000 | 285,000,000 | ||||||
Change in Deferred Gain on Retroactive Reinsurance | 16,000,000 | 16,000,000 | 16,000,000 | 0 | 0 | 16,000,000 | ||
Adverse Development Cover Navigators Group [Member] | ||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||
Payments for Reinsurance | $ 91,000,000 | 91,000,000 | ||||||
Reinsurance Retention Policy, Amount Retained | 68,000,000 | |||||||
Policyholder Benefits and Claims Incurred, Ceded | $ 91,000,000 | 107,000,000 | ||||||
Change in Deferred Gain on Retroactive Reinsurance | 16,000,000 | 16,000,000 | 16,000,000 | 16,000,000 | ||||
Retention Layer Above Reserve for the Covered Liabilities as of the Inception Date [Member] | Adverse Development Cover Navigators Group [Member] | ||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||
Reinsurance Retention Policy, Amount Retained | 100,000,000 | |||||||
Policyholder Benefits and Claims Incurred, Ceded | 207,000,000 | |||||||
Retention Layer for Reserve for the Covered Liabilities as of the Inception Date [Member] | Adverse Development Cover Navigators Group [Member] | ||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||
Reinsurance Retention Policy, Amount Retained | 1,816,000,000 | |||||||
Property and Casualty Insurance Products | ||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 22,986,000,000 | 22,986,000,000 | 22,986,000,000 | 20,352,000,000 | 19,818,000,000 | $ 19,057,000,000 | 22,986,000,000 | |
Reinsurance and Other Recoverables | 5,275,000,000 | 5,275,000,000 | 5,275,000,000 | 4,232,000,000 | 3,957,000,000 | 3,488,000,000 | 5,275,000,000 | |
Group Benefits | ||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 8,009,000,000 | 8,009,000,000 | 8,009,000,000 | 8,206,000,000 | 8,303,000,000 | 5,564,000,000 | 8,009,000,000 | |
Prior accident year development [1] | (410,000,000) | (324,000,000) | (185,000,000) | |||||
Reinsurance and Other Recoverables | 247,000,000 | 247,000,000 | $ 247,000,000 | 239,000,000 | $ 209,000,000 | 208,000,000 | 247,000,000 | |
Scenario, Adjustment [Member] | Property and Casualty Insurance Products | ||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||
Reinsurance and Other Recoverables | $ 90,000,000 | |||||||
Minimum | Group Benefits | ||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||
Range of discount rates | 2.10% | 2.10% | 2.10% | |||||
Maximum | Adverse Development Cover Navigators Group [Member] | ||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||
Reinsurance Retention Policy, Excess Retention, Amount Reinsured | $ 300,000,000 | |||||||
Maximum | Group Benefits | ||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||
Range of discount rates | 8.00% | 8.00% | 8.00% | |||||
Camp Wildfire [Member] | ||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||
Reinsurance Recoverable for Paid and Unpaid Claims and Claims Adjustments | 12,000,000 | 12,000,000 | $ 12,000,000 | 12,000,000 | ||||
Policyholder Benefits and Claims Incurred, Assumed | 350,000,000 | |||||||
Group long-term disability | Group Benefits | ||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 6,616,000,000 | 6,616,000,000 | 6,616,000,000 | 6,616,000,000 | ||||
Prior accident year development [1] | 340,000,000 | $ 230,000,000 | $ 125,000,000 | |||||
Reinsurance and Other Recoverables | 236,000,000 | 236,000,000 | 236,000,000 | 236,000,000 | ||||
Group life and accident, excluding premium waiver | Group Benefits | ||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 580,000,000 | 580,000,000 | 580,000,000 | 580,000,000 | ||||
Prior accident year development [1] | 60,000,000 | 90,000,000 | 60,000,000 | |||||
Reinsurance and Other Recoverables | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | ||||
Property and Casualty Insurance Products | ||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 22,986,000,000 | 22,986,000,000 | 22,986,000,000 | 22,986,000,000 | ||||
Prior accident year development [1] | (65,000,000) | (167,000,000) | (41,000,000) | |||||
Reinsurance and Other Recoverables | 5,275,000,000 | 5,275,000,000 | 5,275,000,000 | 5,275,000,000 | ||||
Policyholder Benefits and Claims Incurred, Ceded | $ 826,000,000 | $ 661,000,000 | $ 901,000,000 | |||||
Property and Casualty Insurance Products | Minimum | ||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||
Range of discount rates | 1.76% | 1.77% | 1.77% | |||||
Property and Casualty Insurance Products | Maximum | ||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||
Range of discount rates | 14.03% | 14.15% | 14.15% | |||||
Catastrophes | ||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 825,000,000 | 825,000,000 | $ 825,000,000 | 825,000,000 | ||||
Prior accident year development [1] | (42,000,000) | $ (49,000,000) | $ (16,000,000) | |||||
Catastrophes | Scenario, Adjustment [Member] | Property and Casualty Insurance Products | ||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 850,000,000 | |||||||
Prior accident year development [1] | 133,000,000 | |||||||
Catastrophes | Scenario, Plan [Member] | ||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||
Reinsurance Recoverable for Paid and Unpaid Claims and Claims Adjustments | 45,000,000 | 45,000,000 | 45,000,000 | 45,000,000 | ||||
Asbestos and Environmental | ||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 1,147,000,000 | 1,147,000,000 | 1,147,000,000 | 1,147,000,000 | ||||
Reinsurance and Other Recoverables | 1,219,000,000 | 1,219,000,000 | 1,219,000,000 | 1,219,000,000 | ||||
Payments for Reinsurance | 650,000,000 | |||||||
Reinsurance Retention Policy, Excess Retention, Amount Reinsured | 860,000,000 | |||||||
Reinsurance Retention Policy, Amount Retained | $ 1,700,000,000 | |||||||
Policyholder Benefits and Claims Incurred, Ceded | 640,000,000 | 640,000,000 | ||||||
Asbestos and Environmental | Maximum | ||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||
Reinsurance Retention Policy, Excess Retention, Amount Reinsured | 1,500,000,000 | |||||||
General liability | ||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 3,494,000,000 | 3,494,000,000 | 3,494,000,000 | 3,494,000,000 | ||||
Prior accident year development [1] | 61,000,000 | 52,000,000 | 11,000,000 | |||||
Reinsurance and Other Recoverables | 630,000,000 | 630,000,000 | 630,000,000 | 630,000,000 | ||||
General liability | Adverse Development Cover Navigators Group [Member] | ||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||
Policyholder Benefits and Claims Incurred, Ceded | 28,000,000 | |||||||
Professional liability | ||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 1,050,000,000 | 1,050,000,000 | 1,050,000,000 | 1,050,000,000 | ||||
Prior accident year development [1] | 29,000,000 | (12,000,000) | 1,000,000 | |||||
Reinsurance and Other Recoverables | 549,000,000 | 549,000,000 | 549,000,000 | 549,000,000 | ||||
Professional liability | Adverse Development Cover Navigators Group [Member] | ||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||
Policyholder Benefits and Claims Incurred, Ceded | 25,000,000 | |||||||
Assumed Reinsurance [Member] | ||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 190,000,000 | 190,000,000 | 190,000,000 | 190,000,000 | ||||
Prior accident year development [1] | 3,000,000 | 0 | 0 | |||||
Reinsurance and Other Recoverables | 25,000,000 | 25,000,000 | 25,000,000 | 25,000,000 | ||||
Assumed Reinsurance [Member] | Adverse Development Cover Navigators Group [Member] | ||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||
Policyholder Benefits and Claims Incurred, Ceded | 13,000,000 | |||||||
Commercial Auto Physical Damage [Member] | ||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 15,000,000 | 15,000,000 | 15,000,000 | 15,000,000 | ||||
Reinsurance and Other Recoverables | (1,000,000) | (1,000,000) | (1,000,000) | (1,000,000) | ||||
Commercial Auto Physical Damage [Member] | Adverse Development Cover Navigators Group [Member] | ||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||
Policyholder Benefits and Claims Incurred, Ceded | 12,000,000 | |||||||
Marine [Member] | ||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 279,000,000 | 279,000,000 | 279,000,000 | 279,000,000 | ||||
Prior accident year development [1] | 8,000,000 | 0 | 0 | |||||
Reinsurance and Other Recoverables | 135,000,000 | 135,000,000 | 135,000,000 | 135,000,000 | ||||
Marine [Member] | Adverse Development Cover Navigators Group [Member] | ||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||
Policyholder Benefits and Claims Incurred, Ceded | 9,000,000 | |||||||
Property | ||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||
Prior accident year development [1] | 3,000,000 | (25,000,000) | (14,000,000) | |||||
Property | Property and Casualty, Commercial Insurance [Member] | ||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 461,000,000 | 461,000,000 | 461,000,000 | 461,000,000 | ||||
Prior accident year development [1] | (11,000,000) | $ (12,000,000) | $ (8,000,000) | |||||
Reinsurance and Other Recoverables | 162,000,000 | 162,000,000 | 162,000,000 | 162,000,000 | ||||
Property | Property and Casualty, Commercial Insurance [Member] | Adverse Development Cover Navigators Group [Member] | ||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||
Policyholder Benefits and Claims Incurred, Ceded | 8,000,000 | |||||||
Short-Duration Insurance, Other [Member] | ||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 215,000,000 | 215,000,000 | 215,000,000 | 215,000,000 | ||||
Reinsurance and Other Recoverables | 312,000,000 | 312,000,000 | 312,000,000 | 312,000,000 | ||||
Short-Duration Insurance, Other [Member] | Adverse Development Cover Navigators Group [Member] | ||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||
Policyholder Benefits and Claims Incurred, Ceded | 12,000,000 | |||||||
PG&E [Member] | Portion of Expected Class Settlement Due to HIG [Member] | Minimum | ||||||||
Gain Contingencies [Line Items] | ||||||||
Gain Contingency, Unrecorded Amount | 300,000,000 | 300,000,000 | 300,000,000 | 300,000,000 | ||||
PG&E [Member] | Portion of Expected Class Settlement Due to HIG [Member] | Maximum | ||||||||
Gain Contingencies [Line Items] | ||||||||
Gain Contingency, Unrecorded Amount | $ 325,000,000 | $ 325,000,000 | $ 325,000,000 | $ 325,000,000 |
Reserve for Unpaid Losses and_7
Reserve for Unpaid Losses and Loss Adjustment Expenses - Reconciliation of Loss Development to Liability for Unpaid Losses and Loss Adjustment Expenses, P&C (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||
Unpaid losses and loss adjustment expenses | $ 36,517 | $ 33,029 | |
Workers’ compensation | |||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||
Cumulative Incurred for Accident Years Displayed in Triangles | 18,990 | ||
Cumulative Paid for Accident Years Displayed in Triangles | (10,991) | ||
Unpaid for Accident Years not Displayed in Triangles | 2,446 | ||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | 345 | ||
Discount | (372) | ||
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 10,418 | ||
Reinsurance and Other Recoverables | (2,093) | ||
Unpaid losses and loss adjustment expenses | 12,511 | ||
General liability | |||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||
Cumulative Incurred for Accident Years Displayed in Triangles | 5,711 | ||
Cumulative Paid for Accident Years Displayed in Triangles | (2,828) | ||
Unpaid for Accident Years not Displayed in Triangles | 471 | ||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | 140 | ||
Discount | 0 | ||
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 3,494 | ||
Reinsurance and Other Recoverables | (630) | ||
Unpaid losses and loss adjustment expenses | 4,124 | ||
Marine [Member] | |||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||
Cumulative Incurred for Accident Years Displayed in Triangles | 1,226 | ||
Cumulative Paid for Accident Years Displayed in Triangles | (974) | ||
Unpaid for Accident Years not Displayed in Triangles | 19 | ||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | 8 | ||
Discount | 0 | ||
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 279 | ||
Reinsurance and Other Recoverables | (135) | ||
Unpaid losses and loss adjustment expenses | 414 | ||
Package business | |||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||
Cumulative Incurred for Accident Years Displayed in Triangles | 6,817 | ||
Cumulative Paid for Accident Years Displayed in Triangles | (5,215) | ||
Unpaid for Accident Years not Displayed in Triangles | 49 | ||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | 91 | ||
Discount | 0 | ||
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 1,742 | ||
Reinsurance and Other Recoverables | (33) | ||
Unpaid losses and loss adjustment expenses | 1,775 | ||
Property | Property and Casualty, Commercial Insurance [Member] | |||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||
Cumulative Incurred for Accident Years Displayed in Triangles | 2,939 | ||
Cumulative Paid for Accident Years Displayed in Triangles | (2,520) | ||
Unpaid for Accident Years not Displayed in Triangles | 29 | ||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | 13 | ||
Discount | 0 | ||
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 461 | ||
Reinsurance and Other Recoverables | (162) | ||
Unpaid losses and loss adjustment expenses | 623 | ||
Automobile liability | Property and Casualty, Commercial Insurance [Member] | |||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||
Cumulative Incurred for Accident Years Displayed in Triangles | 3,698 | ||
Cumulative Paid for Accident Years Displayed in Triangles | (2,739) | ||
Unpaid for Accident Years not Displayed in Triangles | 11 | ||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | 22 | ||
Discount | 0 | ||
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 992 | ||
Reinsurance and Other Recoverables | (73) | ||
Unpaid losses and loss adjustment expenses | 1,065 | ||
Automobile liability | Property and Casualty, Personal Insurance [Member] | |||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||
Cumulative Incurred for Accident Years Displayed in Triangles | 11,985 | ||
Cumulative Paid for Accident Years Displayed in Triangles | (10,518) | ||
Unpaid for Accident Years not Displayed in Triangles | 25 | ||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | 68 | ||
Discount | 0 | ||
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 1,560 | ||
Reinsurance and Other Recoverables | (27) | ||
Unpaid losses and loss adjustment expenses | 1,587 | ||
Commercial automobile physical damage | |||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||
Cumulative Incurred for Accident Years Displayed in Triangles | 206 | ||
Cumulative Paid for Accident Years Displayed in Triangles | (194) | ||
Unpaid for Accident Years not Displayed in Triangles | 3 | ||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | 0 | ||
Discount | 0 | ||
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 15 | ||
Reinsurance and Other Recoverables | 1 | ||
Unpaid losses and loss adjustment expenses | 14 | ||
Professional liability | |||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||
Cumulative Incurred for Accident Years Displayed in Triangles | 1,796 | ||
Cumulative Paid for Accident Years Displayed in Triangles | (863) | ||
Unpaid for Accident Years not Displayed in Triangles | 86 | ||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | 31 | ||
Discount | 0 | ||
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 1,050 | ||
Reinsurance and Other Recoverables | (549) | ||
Unpaid losses and loss adjustment expenses | 1,599 | ||
Bond | |||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||
Cumulative Incurred for Accident Years Displayed in Triangles | 637 | ||
Cumulative Paid for Accident Years Displayed in Triangles | (353) | ||
Unpaid for Accident Years not Displayed in Triangles | 29 | ||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | 24 | ||
Discount | 0 | ||
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 337 | ||
Reinsurance and Other Recoverables | (13) | ||
Unpaid losses and loss adjustment expenses | 350 | ||
Assumed Reinsurance [Member] | |||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||
Cumulative Incurred for Accident Years Displayed in Triangles | 1,005 | ||
Cumulative Paid for Accident Years Displayed in Triangles | (824) | ||
Unpaid for Accident Years not Displayed in Triangles | 4 | ||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | 5 | ||
Discount | 0 | ||
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 190 | ||
Reinsurance and Other Recoverables | (25) | ||
Unpaid losses and loss adjustment expenses | 215 | ||
Personal automobile physical damage | |||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||
Cumulative Incurred for Accident Years Displayed in Triangles | 1,531 | ||
Cumulative Paid for Accident Years Displayed in Triangles | (1,507) | ||
Unpaid for Accident Years not Displayed in Triangles | 6 | ||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | 3 | ||
Discount | 0 | ||
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 33 | ||
Reinsurance and Other Recoverables | 0 | ||
Unpaid losses and loss adjustment expenses | 33 | ||
Homeowners | |||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||
Cumulative Incurred for Accident Years Displayed in Triangles | 7,443 | ||
Cumulative Paid for Accident Years Displayed in Triangles | (6,958) | ||
Unpaid for Accident Years not Displayed in Triangles | 4 | ||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | 38 | ||
Discount | 0 | ||
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 527 | ||
Reinsurance and Other Recoverables | (41) | ||
Unpaid losses and loss adjustment expenses | 568 | ||
Other ongoing business | |||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||
Unpaid for Accident Years not Displayed in Triangles | 231 | ||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | 0 | ||
Discount | (16) | ||
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 215 | ||
Reinsurance and Other Recoverables | (312) | ||
Unpaid losses and loss adjustment expenses | 527 | ||
Asbestos and Environmental | |||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||
Unpaid for Accident Years not Displayed in Triangles | 1,147 | ||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | 0 | ||
Discount | 0 | ||
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 1,147 | ||
Reinsurance and Other Recoverables | (1,219) | ||
Unpaid losses and loss adjustment expenses | 2,366 | ||
Other operations | |||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||
Unpaid for Accident Years not Displayed in Triangles | 375 | ||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | 151 | ||
Discount | 0 | ||
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 526 | ||
Reinsurance and Other Recoverables | 36 | ||
Unpaid losses and loss adjustment expenses | 490 | ||
Property and Casualty Insurance Products | |||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||
Cumulative Incurred for Accident Years Displayed in Triangles | 63,984 | ||
Cumulative Paid for Accident Years Displayed in Triangles | (46,484) | ||
Unpaid for Accident Years not Displayed in Triangles | 4,935 | ||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | 939 | ||
Discount | (388) | $ (388) | $ (410) |
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 22,986 | ||
Reinsurance and Other Recoverables | (5,275) | ||
Unpaid losses and loss adjustment expenses | $ 28,261 |
Reserve for Unpaid Losses and_8
Reserve for Unpaid Losses and Loss Adjustment Expenses - Historical Loss Development Triangles, P&C (Details) claim in Millions, $ in Millions | Dec. 31, 2019USD ($)claim | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) |
Workers’ compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 18,990 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 10,991 | |||||||||
Workers’ compensation | 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,888 | $ 1,892 | $ 1,878 | $ 1,881 | $ 1,882 | $ 1,857 | $ 1,858 | $ 1,814 | $ 1,775 | $ 1,560 |
IBNR Reserves | $ 221 | |||||||||
Claims Reported | claim | 156,802 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,553 | 1,522 | 1,489 | 1,439 | 1,374 | 1,287 | 1,154 | 970 | 709 | 316 |
Workers’ compensation | 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 2,239 | 2,242 | 2,232 | 2,224 | 2,221 | 2,206 | 2,204 | 2,099 | 2,013 | |
IBNR Reserves | $ 314 | |||||||||
Claims Reported | claim | 177,910 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,786 | 1,746 | 1,690 | 1,622 | 1,518 | 1,368 | 1,156 | 841 | 371 | |
Workers’ compensation | 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 2,146 | 2,154 | 2,169 | 2,168 | 2,181 | 2,207 | 2,207 | 2,185 | ||
IBNR Reserves | $ 350 | |||||||||
Claims Reported | claim | 171,341 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,644 | 1,587 | 1,529 | 1,436 | 1,313 | 1,106 | 809 | 359 | ||
Workers’ compensation | 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,850 | 1,861 | 1,861 | 1,883 | 1,920 | 1,981 | 2,020 | |||
IBNR Reserves | $ 415 | |||||||||
Claims Reported | claim | 151,315 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,304 | 1,260 | 1,175 | 1,071 | 917 | 675 | 304 | |||
Workers’ compensation | 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,692 | 1,713 | 1,761 | 1,789 | 1,838 | 1,869 | ||||
IBNR Reserves | $ 477 | |||||||||
Claims Reported | claim | 126,104 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,099 | 1,041 | 960 | 811 | 598 | 275 | ||||
Workers’ compensation | 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,714 | 1,724 | 1,801 | 1,835 | 1,873 | |||||
IBNR Reserves | $ 540 | |||||||||
Claims Reported | claim | 113,819 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,004 | 909 | 778 | 576 | 261 | |||||
Workers’ compensation | 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,767 | 1,780 | 1,772 | 1,772 | ||||||
IBNR Reserves | $ 665 | |||||||||
Claims Reported | claim | 111,763 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 908 | 779 | 579 | 255 | ||||||
Workers’ compensation | 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,840 | 1,869 | 1,862 | |||||||
IBNR Reserves | $ 864 | |||||||||
Claims Reported | claim | 111,096 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 778 | 575 | 261 | |||||||
Workers’ compensation | 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,917 | 1,916 | ||||||||
IBNR Reserves | $ 1,039 | |||||||||
Claims Reported | claim | 116,915 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 624 | 283 | ||||||||
Workers’ compensation | 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,937 | |||||||||
IBNR Reserves | $ 1,359 | |||||||||
Claims Reported | claim | 110,515 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 291 | |||||||||
General liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 5,711 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 2,828 | |||||||||
General liability | 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 482 | 483 | 467 | 465 | 431 | 428 | 437 | 432 | 445 | 436 |
IBNR Reserves | $ 41 | |||||||||
Claims Reported | claim | 23,941 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 427 | 418 | 409 | 387 | 327 | 284 | 230 | 149 | 68 | 20 |
General liability | 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 420 | 426 | 417 | 416 | 404 | 405 | 408 | 420 | 431 | |
IBNR Reserves | $ 48 | |||||||||
Claims Reported | claim | 22,310 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 362 | 348 | 330 | 303 | 255 | 200 | 123 | 61 | 15 | |
General liability | 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 413 | 421 | 408 | 410 | 392 | 399 | 402 | 423 | ||
IBNR Reserves | $ 65 | |||||||||
Claims Reported | claim | 16,501 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 323 | 305 | 280 | 233 | 170 | 101 | 55 | 13 | ||
General liability | 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 505 | 502 | 488 | 484 | 456 | 442 | 455 | |||
IBNR Reserves | $ 77 | |||||||||
Claims Reported | claim | 13,643 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 398 | 372 | 320 | 233 | 141 | 53 | 13 | |||
General liability | 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 522 | 513 | 494 | 481 | 475 | 506 | ||||
IBNR Reserves | $ 114 | |||||||||
Claims Reported | claim | 14,318 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 358 | 304 | 214 | 130 | 42 | 15 | ||||
General liability | 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 633 | 594 | 554 | 560 | 556 | |||||
IBNR Reserves | $ 141 | |||||||||
Claims Reported | claim | 15,088 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 409 | 278 | 156 | 55 | 10 | |||||
General liability | 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 633 | 607 | 583 | 613 | ||||||
IBNR Reserves | $ 254 | |||||||||
Claims Reported | claim | 15,984 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 283 | 131 | 52 | 12 | ||||||
General liability | 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 613 | 614 | 626 | |||||||
IBNR Reserves | $ 359 | |||||||||
Claims Reported | claim | 15,039 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 156 | 67 | 15 | |||||||
General liability | 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 669 | 692 | ||||||||
IBNR Reserves | $ 516 | |||||||||
Claims Reported | claim | 15,368 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 83 | 21 | ||||||||
General liability | 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 821 | |||||||||
IBNR Reserves | $ 744 | |||||||||
Claims Reported | claim | 11,628 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 29 | |||||||||
Marine [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,226 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 974 | |||||||||
Marine [Member] | 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 163 | 167 | 163 | 163 | 168 | 179 | 219 | 195 | ||
IBNR Reserves | $ 0 | |||||||||
Claims Reported | claim | 6,766 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 158 | 154 | 152 | 148 | 139 | 125 | 101 | 50 | ||
Marine [Member] | 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 137 | 134 | 139 | 135 | 134 | 152 | 148 | |||
IBNR Reserves | $ (2) | |||||||||
Claims Reported | claim | 6,601 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 125 | 120 | 118 | 111 | 100 | 82 | 41 | |||
Marine [Member] | 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 168 | 163 | 164 | 157 | 159 | 163 | ||||
IBNR Reserves | $ (1) | |||||||||
Claims Reported | claim | 7,093 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 156 | 150 | 130 | 116 | 80 | 40 | ||||
Marine [Member] | 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 133 | 148 | 145 | 145 | 158 | |||||
IBNR Reserves | $ (8) | |||||||||
Claims Reported | claim | 10,038 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 133 | 125 | 115 | 85 | 40 | |||||
Marine [Member] | 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 147 | 137 | 142 | 139 | ||||||
IBNR Reserves | $ (3) | |||||||||
Claims Reported | claim | 12,959 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 122 | 106 | 80 | 35 | ||||||
Marine [Member] | 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 174 | 186 | 160 | |||||||
IBNR Reserves | $ 3 | |||||||||
Claims Reported | claim | 15,216 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 141 | 110 | 48 | |||||||
Marine [Member] | 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 160 | 144 | ||||||||
IBNR Reserves | $ 5 | |||||||||
Claims Reported | claim | 13,130 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 104 | 37 | ||||||||
Marine [Member] | 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 144 | |||||||||
IBNR Reserves | $ 61 | |||||||||
Claims Reported | claim | 5,775 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 35 | |||||||||
Package business | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 6,817 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 5,215 | |||||||||
Package business | 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 647 | 649 | 651 | 653 | 651 | 652 | 652 | 654 | 662 | 657 |
IBNR Reserves | $ 18 | |||||||||
Claims Reported | claim | 52,484 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 627 | 625 | 618 | 613 | 601 | 570 | 539 | 487 | 414 | 270 |
Package business | 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 807 | 812 | 813 | 814 | 808 | 800 | 790 | 792 | 810 | |
IBNR Reserves | $ 26 | |||||||||
Claims Reported | claim | 61,045 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 774 | 772 | 762 | 748 | 727 | 684 | 621 | 555 | 377 | |
Package business | 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 732 | 739 | 735 | 736 | 731 | 728 | 725 | 736 | ||
IBNR Reserves | $ 30 | |||||||||
Claims Reported | claim | 59,817 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 694 | 687 | 673 | 652 | 616 | 560 | 486 | 286 | ||
Package business | 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 586 | 592 | 586 | 585 | 573 | 565 | 579 | |||
IBNR Reserves | $ 32 | |||||||||
Claims Reported | claim | 43,556 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 541 | 522 | 504 | 467 | 414 | 339 | 225 | |||
Package business | 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 603 | 603 | 602 | 601 | 578 | 566 | ||||
IBNR Reserves | $ 59 | |||||||||
Claims Reported | claim | 43,098 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 525 | 507 | 468 | 416 | 345 | 226 | ||||
Package business | 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 588 | 583 | 585 | 588 | 582 | |||||
IBNR Reserves | $ 69 | |||||||||
Claims Reported | claim | 41,965 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 486 | 445 | 383 | 332 | 212 | |||||
Package business | 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 625 | 632 | 638 | 655 | ||||||
IBNR Reserves | $ 118 | |||||||||
Claims Reported | claim | 43,672 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 465 | 410 | 353 | 225 | ||||||
Package business | 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 692 | 702 | 695 | |||||||
IBNR Reserves | $ 192 | |||||||||
Claims Reported | claim | 45,836 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 447 | 372 | 235 | |||||||
Package business | 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 724 | 719 | ||||||||
IBNR Reserves | $ 241 | |||||||||
Claims Reported | claim | 43,026 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 402 | 237 | ||||||||
Package business | 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 813 | |||||||||
IBNR Reserves | $ 392 | |||||||||
Claims Reported | claim | 36,824 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 254 | |||||||||
Property | Property and Casualty, Commercial Insurance [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 2,939 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 2,520 | |||||||||
Property | Property and Casualty, Commercial Insurance [Member] | 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 333 | 334 | 335 | 336 | 334 | 334 | 333 | 369 | ||
IBNR Reserves | $ 1 | |||||||||
Claims Reported | claim | 26,786 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 330 | 331 | 331 | 331 | 326 | 317 | 296 | 182 | ||
Property | Property and Casualty, Commercial Insurance [Member] | 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 247 | 248 | 249 | 252 | 253 | 252 | 268 | |||
IBNR Reserves | $ 0 | |||||||||
Claims Reported | claim | 21,601 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 245 | 244 | 242 | 243 | 238 | 223 | 161 | |||
Property | Property and Casualty, Commercial Insurance [Member] | 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 281 | 279 | 280 | 282 | 281 | 293 | ||||
IBNR Reserves | $ 0 | |||||||||
Claims Reported | claim | 21,017 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 279 | 279 | 279 | 270 | 250 | 170 | ||||
Property | Property and Casualty, Commercial Insurance [Member] | 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 305 | 301 | 302 | 301 | 298 | |||||
IBNR Reserves | $ 1 | |||||||||
Claims Reported | claim | 21,005 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 301 | 296 | 284 | 257 | 179 | |||||
Property | Property and Casualty, Commercial Insurance [Member] | 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 406 | 399 | 419 | 405 | ||||||
IBNR Reserves | $ 1 | |||||||||
Claims Reported | claim | 23,710 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 395 | 378 | 342 | 215 | ||||||
Property | Property and Casualty, Commercial Insurance [Member] | 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 455 | 515 | 577 | |||||||
IBNR Reserves | $ 21 | |||||||||
Claims Reported | claim | 24,235 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 412 | 378 | 229 | |||||||
Property | Property and Casualty, Commercial Insurance [Member] | 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 436 | 450 | ||||||||
IBNR Reserves | $ 38 | |||||||||
Claims Reported | claim | 21,460 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 344 | 188 | ||||||||
Property | Property and Casualty, Commercial Insurance [Member] | 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 476 | |||||||||
IBNR Reserves | $ 93 | |||||||||
Claims Reported | claim | 18,634 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 214 | |||||||||
Automobile liability | Property and Casualty, Commercial Insurance [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 3,698 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 2,739 | |||||||||
Automobile liability | Property and Casualty, Commercial Insurance [Member] | 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 339 | 340 | 341 | 344 | 344 | 338 | 335 | 309 | 291 | 290 |
IBNR Reserves | $ 3 | |||||||||
Claims Reported | claim | 38,158 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 335 | 334 | 330 | 324 | 315 | 305 | 266 | 199 | 132 | 60 |
Automobile liability | Property and Casualty, Commercial Insurance [Member] | 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 363 | 362 | 363 | 365 | 366 | 356 | 356 | 310 | 272 | |
IBNR Reserves | $ 6 | |||||||||
Claims Reported | claim | 39,298 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 354 | 353 | 348 | 339 | 316 | 274 | 211 | 133 | 63 | |
Automobile liability | Property and Casualty, Commercial Insurance [Member] | 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 388 | 387 | 389 | 395 | 402 | 391 | 377 | 311 | ||
IBNR Reserves | $ 6 | |||||||||
Claims Reported | claim | 36,043 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 376 | 372 | 359 | 346 | 307 | 234 | 143 | 65 | ||
Automobile liability | Property and Casualty, Commercial Insurance [Member] | 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 335 | 339 | 340 | 341 | 334 | 318 | 311 | |||
IBNR Reserves | $ 11 | |||||||||
Claims Reported | claim | 32,228 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 321 | 311 | 295 | 259 | 202 | 130 | 62 | |||
Automobile liability | Property and Casualty, Commercial Insurance [Member] | 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 334 | 341 | 337 | 331 | 317 | 309 | ||||
IBNR Reserves | $ 14 | |||||||||
Claims Reported | claim | 29,597 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 309 | 299 | 252 | 197 | 131 | 59 | ||||
Automobile liability | Property and Casualty, Commercial Insurance [Member] | 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 356 | 356 | 372 | 358 | 308 | |||||
IBNR Reserves | $ 18 | |||||||||
Claims Reported | claim | 28,487 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 314 | 267 | 207 | 142 | 62 | |||||
Automobile liability | Property and Casualty, Commercial Insurance [Member] | 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 391 | 390 | 393 | 385 | ||||||
IBNR Reserves | $ 44 | |||||||||
Claims Reported | claim | 29,036 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 303 | 232 | 147 | 65 | ||||||
Automobile liability | Property and Casualty, Commercial Insurance [Member] | 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 379 | 383 | 372 | |||||||
IBNR Reserves | $ 76 | |||||||||
Claims Reported | claim | 26,089 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 211 | 134 | 60 | |||||||
Automobile liability | Property and Casualty, Commercial Insurance [Member] | 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 396 | 349 | ||||||||
IBNR Reserves | $ 153 | |||||||||
Claims Reported | claim | 24,016 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 153 | 62 | ||||||||
Automobile liability | Property and Casualty, Commercial Insurance [Member] | 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 417 | |||||||||
IBNR Reserves | $ 291 | |||||||||
Claims Reported | claim | 22,455 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 63 | |||||||||
Automobile liability | Property and Casualty, Personal Insurance [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 11,985 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 10,518 | |||||||||
Automobile liability | Property and Casualty, Personal Insurance [Member] | 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,265 | 1,264 | 1,265 | 1,265 | 1,275 | 1,282 | 1,287 | 1,293 | 1,321 | 1,346 |
IBNR Reserves | $ 3 | |||||||||
Claims Reported | claim | 248,948 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,260 | 1,260 | 1,258 | 1,256 | 1,251 | 1,239 | 1,202 | 1,108 | 915 | 496 |
Automobile liability | Property and Casualty, Personal Insurance [Member] | 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,153 | 1,153 | 1,154 | 1,154 | 1,166 | 1,173 | 1,180 | 1,170 | 1,181 | |
IBNR Reserves | $ 4 | |||||||||
Claims Reported | claim | 221,890 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,146 | 1,146 | 1,145 | 1,140 | 1,126 | 1,088 | 1,006 | 826 | 447 | |
Automobile liability | Property and Casualty, Personal Insurance [Member] | 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,130 | 1,130 | 1,130 | 1,133 | 1,142 | 1,146 | 1,149 | 1,141 | ||
IBNR Reserves | $ 6 | |||||||||
Claims Reported | claim | 210,757 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,122 | 1,120 | 1,114 | 1,104 | 1,067 | 986 | 818 | 441 | ||
Automobile liability | Property and Casualty, Personal Insurance [Member] | 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,157 | 1,153 | 1,152 | 1,153 | 1,144 | 1,145 | 1,131 | |||
IBNR Reserves | $ 8 | |||||||||
Claims Reported | claim | 205,475 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,142 | 1,135 | 1,121 | 1,091 | 1,002 | 816 | 442 | |||
Automobile liability | Property and Casualty, Personal Insurance [Member] | 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,202 | 1,199 | 1,200 | 1,198 | 1,153 | 1,146 | ||||
IBNR Reserves | $ 11 | |||||||||
Claims Reported | claim | 208,983 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,182 | 1,165 | 1,125 | 1,032 | 843 | 430 | ||||
Automobile liability | Property and Casualty, Personal Insurance [Member] | 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,331 | 1,330 | 1,338 | 1,340 | 1,195 | |||||
IBNR Reserves | $ 21 | |||||||||
Claims Reported | claim | 216,827 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,292 | 1,243 | 1,142 | 935 | 475 | |||||
Automobile liability | Property and Casualty, Personal Insurance [Member] | 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,397 | 1,393 | 1,402 | 1,407 | ||||||
IBNR Reserves | $ 46 | |||||||||
Claims Reported | claim | 215,658 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,308 | 1,188 | 968 | 505 | ||||||
Automobile liability | Property and Casualty, Personal Insurance [Member] | 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,228 | 1,275 | 1,277 | |||||||
IBNR Reserves | $ 109 | |||||||||
Claims Reported | claim | 186,993 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,033 | 836 | 441 | |||||||
Automobile liability | Property and Casualty, Personal Insurance [Member] | 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,104 | 1,108 | ||||||||
IBNR Reserves | $ 246 | |||||||||
Claims Reported | claim | 154,648 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 710 | 359 | ||||||||
Automobile liability | Property and Casualty, Personal Insurance [Member] | 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,018 | |||||||||
IBNR Reserves | $ 461 | |||||||||
Claims Reported | claim | 131,577 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 323 | |||||||||
Commercial automobile physical damage | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 206 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 194 | |||||||||
Commercial automobile physical damage | 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 81 | 81 | 85 | |||||||
IBNR Reserves | $ 3 | |||||||||
Claims Reported | claim | 24,325 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 78 | 79 | 74 | |||||||
Commercial automobile physical damage | 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 62 | 62 | ||||||||
IBNR Reserves | $ 1 | |||||||||
Claims Reported | claim | 20,508 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 60 | 54 | ||||||||
Commercial automobile physical damage | 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 63 | |||||||||
IBNR Reserves | $ 2 | |||||||||
Claims Reported | claim | 18,626 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 56 | |||||||||
Professional liability | 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 225 | 219 | 220 | 221 | 218 | 238 | 238 | 242 | ||
IBNR Reserves | $ 19 | |||||||||
Claims Reported | claim | 7,025 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 175 | 172 | 168 | 154 | 139 | 100 | 67 | 17 | ||
Professional liability | 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 171 | 173 | 173 | 174 | 187 | 195 | 207 | |||
IBNR Reserves | $ 24 | |||||||||
Claims Reported | claim | 5,970 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 137 | 131 | 116 | 88 | 67 | 44 | 10 | |||
Professional liability | 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 182 | 179 | 177 | 181 | 183 | 187 | ||||
IBNR Reserves | $ 26 | |||||||||
Claims Reported | claim | 6,705 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 135 | 130 | 107 | 74 | 38 | 7 | ||||
Professional liability | 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 213 | 190 | 179 | 174 | 164 | |||||
IBNR Reserves | $ 51 | |||||||||
Claims Reported | claim | 7,171 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 124 | 107 | 85 | 40 | 9 | |||||
Professional liability | 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 196 | 203 | 176 | 183 | ||||||
IBNR Reserves | $ 66 | |||||||||
Claims Reported | claim | 8,288 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 111 | 88 | 51 | 8 | ||||||
Professional liability | 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 231 | 203 | 205 | |||||||
IBNR Reserves | $ 103 | |||||||||
Claims Reported | claim | 9,224 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 87 | 48 | 11 | |||||||
Professional liability | 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 280 | 247 | ||||||||
IBNR Reserves | $ 155 | |||||||||
Claims Reported | claim | 9,517 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 73 | 15 | ||||||||
Professional liability | 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 298 | |||||||||
IBNR Reserves | $ 252 | |||||||||
Claims Reported | claim | 7,396 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 21 | |||||||||
Bond | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 637 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 353 | |||||||||
Bond | 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 72 | 73 | 92 | 72 | 71 | 75 | 81 | 82 | 76 | 72 |
IBNR Reserves | $ 6 | |||||||||
Claims Reported | claim | 2,674 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 64 | 69 | 67 | 67 | 65 | 60 | 60 | 60 | 46 | 14 |
Bond | 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 72 | 71 | 71 | 71 | 71 | 76 | 78 | 78 | 74 | |
IBNR Reserves | $ 9 | |||||||||
Claims Reported | claim | 2,136 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 61 | 60 | 60 | 60 | 58 | 57 | 52 | 40 | 12 | |
Bond | 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 48 | 45 | 49 | 49 | 55 | 61 | 70 | 71 | ||
IBNR Reserves | $ 13 | |||||||||
Claims Reported | claim | 1,723 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 35 | 34 | 26 | 26 | 24 | 26 | 25 | 12 | ||
Bond | 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 35 | 39 | 49 | 48 | 55 | 58 | 64 | |||
IBNR Reserves | $ 15 | |||||||||
Claims Reported | claim | 1,463 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 20 | 19 | 19 | 19 | 17 | 9 | 3 | |||
Bond | 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 59 | 59 | 67 | 66 | 67 | 71 | ||||
IBNR Reserves | $ 12 | |||||||||
Claims Reported | claim | 1,383 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 45 | 43 | 43 | 40 | 31 | 18 | ||||
Bond | 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 54 | 60 | 63 | 67 | 67 | |||||
IBNR Reserves | $ 19 | |||||||||
Claims Reported | claim | 1,385 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 34 | 31 | 24 | 20 | 9 | |||||
Bond | 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 56 | 61 | 61 | 61 | ||||||
IBNR Reserves | $ 32 | |||||||||
Claims Reported | claim | 1,324 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 20 | 15 | 12 | 2 | ||||||
Bond | 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 101 | 90 | 63 | |||||||
IBNR Reserves | $ 42 | |||||||||
Claims Reported | claim | 1,547 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 55 | 46 | 5 | |||||||
Bond | 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 68 | 68 | ||||||||
IBNR Reserves | $ 49 | |||||||||
Claims Reported | claim | 1,383 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 16 | 6 | ||||||||
Bond | 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 72 | |||||||||
IBNR Reserves | $ 68 | |||||||||
Claims Reported | claim | 1,122 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 3 | |||||||||
Assumed Reinsurance [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,005 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 824 | |||||||||
Assumed Reinsurance [Member] | 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 121 | 119 | 120 | 115 | 88 | 93 | 99 | 107 | ||
IBNR Reserves | $ 0 | |||||||||
Claims Reported | claim | 1,424 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 119 | 118 | 118 | 112 | 85 | 83 | 77 | 38 | ||
Assumed Reinsurance [Member] | 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 104 | 102 | 102 | 105 | 103 | 119 | 115 | |||
IBNR Reserves | $ 1 | |||||||||
Claims Reported | claim | 1,607 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 103 | 101 | 100 | 98 | 91 | 83 | 53 | |||
Assumed Reinsurance [Member] | 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 116 | 115 | 118 | 122 | 142 | 119 | ||||
IBNR Reserves | $ 1 | |||||||||
Claims Reported | claim | 1,654 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 113 | 112 | 109 | 106 | 119 | 66 | ||||
Assumed Reinsurance [Member] | 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 95 | 94 | 94 | 92 | 102 | |||||
IBNR Reserves | $ 0 | |||||||||
Claims Reported | claim | 1,383 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 91 | 83 | 77 | 64 | 42 | |||||
Assumed Reinsurance [Member] | 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 100 | 98 | 91 | 88 | ||||||
IBNR Reserves | $ 3 | |||||||||
Claims Reported | claim | 1,434 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 90 | 84 | 66 | 36 | ||||||
Assumed Reinsurance [Member] | 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 161 | 153 | 129 | |||||||
IBNR Reserves | $ 11 | |||||||||
Claims Reported | claim | 1,582 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 135 | 116 | 44 | |||||||
Assumed Reinsurance [Member] | 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 127 | 128 | ||||||||
IBNR Reserves | $ 1 | |||||||||
Claims Reported | claim | 1,322 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 111 | 25 | ||||||||
Assumed Reinsurance [Member] | 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 181 | |||||||||
IBNR Reserves | $ 107 | |||||||||
Claims Reported | claim | 875 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 62 | |||||||||
Personal automobile physical damage | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,531 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,507 | |||||||||
Personal automobile physical damage | 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 588 | 588 | 598 | |||||||
IBNR Reserves | $ (1) | |||||||||
Claims Reported | claim | 362,235 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 589 | 591 | 574 | |||||||
Personal automobile physical damage | 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 498 | 509 | ||||||||
IBNR Reserves | $ 7 | |||||||||
Claims Reported | claim | 305,031 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 491 | 474 | ||||||||
Personal automobile physical damage | 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 445 | |||||||||
IBNR Reserves | $ (11) | |||||||||
Claims Reported | claim | 262,866 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 427 | |||||||||
Homeowners | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 7,443 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 6,958 | |||||||||
Homeowners | 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 834 | 834 | 834 | 836 | 840 | 840 | 840 | 838 | 850 | 838 |
IBNR Reserves | $ (1) | |||||||||
Claims Reported | claim | 161,597 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 835 | 834 | 833 | 833 | 832 | 829 | 825 | 815 | 789 | $ 599 |
Homeowners | 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 907 | 907 | 908 | 911 | 914 | 916 | 919 | 920 | 955 | |
IBNR Reserves | $ 0 | |||||||||
Claims Reported | claim | 179,399 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 908 | 907 | 908 | 905 | 903 | 899 | 891 | 871 | $ 709 | |
Homeowners | 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 738 | 738 | 738 | 739 | 741 | 741 | 741 | 774 | ||
IBNR Reserves | $ 1 | |||||||||
Claims Reported | claim | 142,845 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 736 | 735 | 734 | 731 | 727 | 719 | 696 | $ 547 | ||
Homeowners | 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 629 | 630 | 632 | 634 | 637 | 638 | 673 | |||
IBNR Reserves | $ 1 | |||||||||
Claims Reported | claim | 113,538 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 628 | 627 | 626 | 622 | 611 | 590 | $ 467 | |||
Homeowners | 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 698 | 698 | 700 | 702 | 707 | 710 | ||||
IBNR Reserves | $ (1) | |||||||||
Claims Reported | claim | 121,902 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 697 | 695 | 691 | 684 | 663 | $ 526 | ||||
Homeowners | 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 684 | 684 | 690 | 703 | 690 | |||||
IBNR Reserves | $ 2 | |||||||||
Claims Reported | claim | 119,944 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 680 | 674 | 665 | 645 | $ 487 | |||||
Homeowners | 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 658 | 663 | 673 | 669 | ||||||
IBNR Reserves | $ 4 | |||||||||
Claims Reported | claim | 119,646 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 649 | 640 | 621 | $ 481 | ||||||
Homeowners | 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 884 | 889 | 866 | |||||||
IBNR Reserves | $ 41 | |||||||||
Claims Reported | claim | 124,189 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 795 | 747 | $ 538 | |||||||
Homeowners | 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 910 | 903 | ||||||||
IBNR Reserves | $ 60 | |||||||||
Claims Reported | claim | 101,985 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 712 | $ 484 | ||||||||
Homeowners | 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 501 | |||||||||
IBNR Reserves | $ 107 | |||||||||
Claims Reported | claim | 78,068 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 318 |
Reserve for Unpaid Losses and_9
Reserve for Unpaid Losses and Loss Adjustment Expenses - Average Annual Payout of Incurred Claims by Age, P&C (Details) | Dec. 31, 2019 |
Workers’ compensation | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
1st Year | 15.60% |
2nd Year | 19.30% |
3rd Year | 12.70% |
4th Year | 8.70% |
5th Year | 5.90% |
6th Year | 4.30% |
7th Year | 2.90% |
8th Year | 2.60% |
9th Year | 1.80% |
10th Year | 1.60% |
General liability | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
1st Year | 2.90% |
2nd Year | 8.40% |
3rd Year | 15.00% |
4th Year | 18.50% |
5th Year | 15.80% |
6th Year | 10.50% |
7th Year | 7.50% |
8th Year | 4.40% |
9th Year | 2.50% |
10th Year | 1.90% |
Marine [Member] | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
1st Year | 26.70% |
2nd Year | 32.30% |
3rd Year | 17.90% |
4th Year | 8.80% |
5th Year | 7.10% |
6th Year | 2.30% |
7th Year | 2.60% |
8th Year | 2.50% |
Package business | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
1st Year | 37.40% |
2nd Year | 21.60% |
3rd Year | 10.40% |
4th Year | 8.70% |
5th Year | 5.80% |
6th Year | 3.30% |
7th Year | 2.20% |
8th Year | 1.00% |
9th Year | 0.60% |
10th Year | 0.30% |
Commercial automobile physical damage | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
1st Year | 89.10% |
2nd Year | 7.80% |
3rd Year | (0.40%) |
Professional liability | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
1st Year | 5.40% |
2nd Year | 18.80% |
3rd Year | 17.50% |
4th Year | 14.00% |
5th Year | 11.10% |
6th Year | 5.70% |
7th Year | 2.70% |
8th Year | 1.00% |
9th Year | |
10th Year | |
Bond | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
1st Year | 13.80% |
2nd Year | 27.20% |
3rd Year | 12.60% |
4th Year | 4.80% |
5th Year | 1.90% |
6th Year | 2.20% |
7th Year | 5.70% |
8th Year | 0.50% |
9th Year | 1.80% |
10th Year | (6.20%) |
Assumed Reinsurance [Member] | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
1st Year | 37.70% |
2nd Year | 39.00% |
3rd Year | 7.40% |
4th Year | 4.70% |
5th Year | 8.80% |
6th Year | 2.30% |
7th Year | 0.90% |
8th Year | 0.70% |
Personal automobile physical damage | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
1st Year | 96.30% |
2nd Year | 3.00% |
3rd Year | (0.30%) |
Homeowners | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
1st Year | 69.60% |
2nd Year | 21.50% |
3rd Year | 3.30% |
4th Year | 1.20% |
5th Year | 0.60% |
6th Year | 0.30% |
7th Year | 0.10% |
8th Year | 0.10% |
9th Year | 0.00% |
10th Year | 0.10% |
Property and Casualty, Commercial Insurance [Member] | Property | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
1st Year | 53.80% |
2nd Year | 30.50% |
3rd Year | 7.40% |
4th Year | 3.10% |
5th Year | 0.80% |
6th Year | 0.30% |
7th Year | 0.10% |
8th Year | (0.20%) |
9th Year | |
10th Year | |
Property and Casualty, Commercial Insurance [Member] | Automobile liability | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
1st Year | 16.90% |
2nd Year | 21.00% |
3rd Year | 20.80% |
4th Year | 17.80% |
5th Year | 11.80% |
6th Year | 4.30% |
7th Year | 2.70% |
8th Year | 1.40% |
9th Year | 0.70% |
10th Year | 0.30% |
Property and Casualty, Personal Insurance [Member] | Automobile liability | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
1st Year | 36.30% |
2nd Year | 33.10% |
3rd Year | 15.60% |
4th Year | 7.60% |
5th Year | 3.20% |
6th Year | 1.10% |
7th Year | 0.50% |
8th Year | 0.20% |
9th Year | 0.10% |
10th Year | 0.00% |
Group Benefits | Group long-term disability | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
1st Year | 7.40% |
2nd Year | 24.80% |
3rd Year | 15.50% |
4th Year | 8.60% |
5th Year | 6.30% |
6th Year | 5.40% |
7th Year | 4.60% |
8th Year | 3.90% |
9th Year | 3.40% |
Reserve for Unpaid Losses an_10
Reserve for Unpaid Losses and Loss Adjustment Expenses - Group Benefits Liabilities for Unpaid Losses and Loss Adjustment Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Beginning liabilities for unpaid losses and loss adjustment expenses, gross | $ 33,029 | ||
Payments | |||
Ending liabilities for unpaid losses and loss adjustment expenses, gross | 36,517 | $ 33,029 | |
Group Benefits | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Beginning liabilities for unpaid losses and loss adjustment expenses, gross | 8,445 | 8,512 | $ 5,772 |
Reinsurance and other recoverables | 239 | 209 | 208 |
Beginning liabilities for unpaid losses and loss adjustment expenses, net | 8,206 | 8,303 | 5,564 |
Provision for unpaid losses and loss adjustment expenses | |||
Current accident year | 4,385 | 4,470 | 2,868 |
Prior year's discount accretion | 219 | 227 | 202 |
Prior accident year development [1] | (410) | (324) | (185) |
Total provision for unpaid losses and loss adjustment expenses | 4,194 | 4,373 | 2,885 |
Payments | |||
Current incurral year | (2,277) | (2,377) | (1,528) |
Prior incurral years | (2,114) | (2,135) | (1,451) |
Total payments | (4,391) | (4,512) | (2,979) |
Ending liabilities for unpaid losses and loss adjustment expenses, net | 8,009 | 8,206 | 8,303 |
Reinsurance and other recoverables | 247 | 239 | 209 |
Ending liabilities for unpaid losses and loss adjustment expenses, gross | 8,256 | 8,445 | 8,512 |
Group Benefits | Aetna Group Insurance [Member] | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Add: Aetna U.S. group life and disability business acquisitions | 0 | 42 | 2,833 |
Other Operating Income (Expense) [Member] | Group Benefits | |||
Provision for unpaid losses and loss adjustment expenses | |||
Total provision for unpaid losses and loss adjustment expenses | $ 178 | $ 194 | $ 111 |
Reserve for Unpaid Losses an_11
Reserve for Unpaid Losses and Loss Adjustment Expenses - Discounted Reserves, Group (Details) - Group Benefits - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Weighted Average Discount Rate [Line Items] | |||
Liability for unpaid losses and loss adjustment expenses, at undiscounted amounts | $ 8,636 | $ 8,957 | $ 9,071 |
Discount | (1,401) | (1,505) | (1,536) |
Carrying value of liability for unpaid losses and loss adjustment expenses | $ 7,235 | $ 7,452 | $ 7,535 |
Weighted average discount rate | 3.40% | 3.40% | 3.50% |
Minimum | |||
Weighted Average Discount Rate [Line Items] | |||
Range of discount rates | 2.10% | 2.10% | 2.10% |
Maximum | |||
Weighted Average Discount Rate [Line Items] | |||
Range of discount rates | 8.00% | 8.00% | 8.00% |
Reserve for Unpaid Losses an_12
Reserve for Unpaid Losses and Loss Adjustment Expenses - Reconciliation of Loss Development to Liability for Unpaid Losses and Loss Adjustment Expenses, Group (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Unpaid losses and loss adjustment expenses | $ 36,517 | $ 33,029 | ||
Group Benefits | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Cumulative Incurred for Accident Years Displayed in Triangles | 18,950 | |||
Cumulative Paid for Accident Years Displayed in Triangles | (12,648) | |||
Unpaid for Accident Years not Displayed in Triangles | 2,918 | |||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | 190 | |||
Discount | (1,401) | (1,505) | $ (1,536) | |
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 8,009 | 8,206 | 8,303 | $ 5,564 |
Reinsurance and Other Recoverables | (247) | (239) | (209) | (208) |
Unpaid losses and loss adjustment expenses | 8,256 | $ 8,445 | $ 8,512 | $ 5,772 |
Group Benefits | Group long-term disability | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Cumulative Incurred for Accident Years Displayed in Triangles | 13,157 | |||
Cumulative Paid for Accident Years Displayed in Triangles | (7,316) | |||
Unpaid for Accident Years not Displayed in Triangles | 1,874 | |||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | 173 | |||
Discount | (1,272) | |||
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 6,616 | |||
Reinsurance and Other Recoverables | (236) | |||
Unpaid losses and loss adjustment expenses | 6,852 | |||
Group Benefits | Group life and accident, excluding premium waiver | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Cumulative Incurred for Accident Years Displayed in Triangles | 5,793 | |||
Cumulative Paid for Accident Years Displayed in Triangles | (5,332) | |||
Unpaid for Accident Years not Displayed in Triangles | 134 | |||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | 3 | |||
Discount | (18) | |||
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 580 | |||
Reinsurance and Other Recoverables | (1) | |||
Unpaid losses and loss adjustment expenses | 581 | |||
Group Benefits | Group short-term disability | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Unpaid for Accident Years not Displayed in Triangles | 114 | |||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | 4 | |||
Discount | 0 | |||
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 118 | |||
Reinsurance and Other Recoverables | 0 | |||
Unpaid losses and loss adjustment expenses | 118 | |||
Group Benefits | Group life premium waiver | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Unpaid for Accident Years not Displayed in Triangles | 758 | |||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | 10 | |||
Discount | (111) | |||
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 657 | |||
Reinsurance and Other Recoverables | (2) | |||
Unpaid losses and loss adjustment expenses | 659 | |||
Group Benefits | Group supplemental health | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Unpaid for Accident Years not Displayed in Triangles | 38 | |||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | 0 | |||
Discount | 0 | |||
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 38 | |||
Reinsurance and Other Recoverables | (8) | |||
Unpaid losses and loss adjustment expenses | $ 46 |
Reserve for Unpaid Losses an_13
Reserve for Unpaid Losses and Loss Adjustment Expenses - Historical Loss Development Triangles, Group (Details) - Group Benefits claim in Millions, $ in Millions | Dec. 31, 2019USD ($)claim | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) |
Claims Development [Line Items] | |||||||||
Cumulative Incurred for Accident Years Displayed in Triangles | $ 18,950 | ||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 12,648 | ||||||||
Group long-term disability | |||||||||
Claims Development [Line Items] | |||||||||
Cumulative Incurred for Accident Years Displayed in Triangles | 13,157 | ||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 7,316 | ||||||||
Group long-term disability | 2011 | |||||||||
Claims Development [Line Items] | |||||||||
Cumulative Incurred for Accident Years Displayed in Triangles | 1,631 | $ 1,638 | $ 1,649 | $ 1,660 | $ 1,669 | $ 1,659 | $ 1,660 | $ 1,761 | $ 1,917 |
IBNR Reserves | $ 0 | ||||||||
Claims Reported | claim | 39,246 | ||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,286 | 1,231 | 1,167 | 1,087 | 996 | 886 | 743 | 508 | $ 118 |
Group long-term disability | 2012 | |||||||||
Claims Development [Line Items] | |||||||||
Cumulative Incurred for Accident Years Displayed in Triangles | 1,486 | 1,504 | 1,515 | 1,530 | 1,532 | 1,539 | 1,605 | 1,829 | |
IBNR Reserves | $ 0 | ||||||||
Claims Reported | claim | 37,523 | ||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,138 | 1,080 | 1,014 | 933 | 835 | 708 | 483 | $ 108 | |
Group long-term disability | 2013 | |||||||||
Claims Development [Line Items] | |||||||||
Cumulative Incurred for Accident Years Displayed in Triangles | 1,399 | 1,413 | 1,416 | 1,429 | 1,429 | 1,479 | 1,660 | ||
IBNR Reserves | $ 1 | ||||||||
Claims Reported | claim | 31,946 | ||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,016 | 954 | 881 | 791 | 664 | 443 | $ 102 | ||
Group long-term disability | 2014 | |||||||||
Claims Development [Line Items] | |||||||||
Cumulative Incurred for Accident Years Displayed in Triangles | 1,408 | 1,431 | 1,431 | 1,430 | 1,473 | 1,636 | |||
IBNR Reserves | $ 2 | ||||||||
Claims Reported | claim | 33,213 | ||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 960 | 884 | 801 | 675 | 448 | $ 103 | |||
Group long-term disability | 2015 | |||||||||
Claims Development [Line Items] | |||||||||
Cumulative Incurred for Accident Years Displayed in Triangles | 1,401 | 1,420 | 1,422 | 1,442 | 1,595 | ||||
IBNR Reserves | $ 3 | ||||||||
Claims Reported | claim | 33,820 | ||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 891 | 806 | 687 | 460 | $ 108 | ||||
Group long-term disability | 2016 | |||||||||
Claims Development [Line Items] | |||||||||
Cumulative Incurred for Accident Years Displayed in Triangles | 1,437 | 1,468 | 1,481 | 1,651 | |||||
IBNR Reserves | $ 3 | ||||||||
Claims Reported | claim | 34,719 | ||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 819 | 705 | 479 | $ 112 | |||||
Group long-term disability | 2017 | |||||||||
Claims Development [Line Items] | |||||||||
Cumulative Incurred for Accident Years Displayed in Triangles | 1,358 | 1,413 | 1,597 | ||||||
IBNR Reserves | $ 8 | ||||||||
Claims Reported | claim | 31,865 | ||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 658 | 452 | 109 | ||||||
Group long-term disability | 2018 | |||||||||
Claims Development [Line Items] | |||||||||
Cumulative Incurred for Accident Years Displayed in Triangles | 1,387 | 1,647 | |||||||
IBNR Reserves | $ 37 | ||||||||
Claims Reported | claim | 28,551 | ||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 447 | 105 | |||||||
Group long-term disability | 2019 | |||||||||
Claims Development [Line Items] | |||||||||
Cumulative Incurred for Accident Years Displayed in Triangles | 1,650 | ||||||||
IBNR Reserves | $ 852 | ||||||||
Claims Reported | claim | 17,753 | ||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 101 | ||||||||
Group life and accident, excluding premium waiver | |||||||||
Claims Development [Line Items] | |||||||||
Cumulative Incurred for Accident Years Displayed in Triangles | 5,793 | ||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 5,332 | ||||||||
Group life and accident, excluding premium waiver | 2017 | |||||||||
Claims Development [Line Items] | |||||||||
Cumulative Incurred for Accident Years Displayed in Triangles | 1,951 | 1,953 | 1,999 | ||||||
IBNR Reserves | $ 4 | ||||||||
Claims Reported | claim | 45,139 | ||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,945 | 1,929 | $ 1,551 | ||||||
Group life and accident, excluding premium waiver | 2018 | |||||||||
Claims Development [Line Items] | |||||||||
Cumulative Incurred for Accident Years Displayed in Triangles | 1,940 | 1,952 | |||||||
IBNR Reserves | $ 18 | ||||||||
Claims Reported | claim | 52,027 | ||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,916 | $ 1,532 | |||||||
Group life and accident, excluding premium waiver | 2019 | |||||||||
Claims Development [Line Items] | |||||||||
Cumulative Incurred for Accident Years Displayed in Triangles | 1,902 | ||||||||
IBNR Reserves | $ 373 | ||||||||
Claims Reported | claim | 45,825 | ||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,471 |
Reserve for Unpaid Losses an_14
Reserve for Unpaid Losses and Loss Adjustment Expenses - Average Annual Payout of Incurred Claims by Age, Group (Details) - Group Benefits | Dec. 31, 2019 |
Group long-term disability | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
1st Year | 7.40% |
2nd Year | 24.80% |
3rd Year | 15.50% |
4th Year | 8.60% |
5th Year | 6.30% |
6th Year | 5.40% |
7th Year | 4.60% |
8th Year | 3.90% |
9th Year | 3.40% |
Group life and accident, excluding premium waiver | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
1st Year | 78.60% |
2nd Year | 19.60% |
3rd Year | 0.90% |
Reserve for Future Policy Ben_3
Reserve for Future Policy Benefits (Details) - Annuitization Benefit - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Liability | ||
Beginning balance | $ 642 | $ 713 |
Incurred | 86 | 72 |
Paid | (102) | (101) |
Change in unrealized investment gains and losses | 9 | (42) |
Ending balance | 635 | 642 |
Reinsurance Recoverable Asset | ||
Beginning balance | 27 | 26 |
Incurred | 4 | 1 |
Paid | 0 | 0 |
Ending balance | $ 31 | $ 27 |
Debt - Short-term and Long-ter
Debt - Short-term and Long-term Debt by Issuance (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Apr. 30, 2017 | |
Schedule of Debt [Line Items] | ||||
Revolving Credit Facilities | $ 0 | $ 0 | ||
Total Notes and Debentures | 4,982 | 4,795 | ||
Unamortized discount and debt issuance cost [2] | 134 | 117 | ||
Total Debt | 4,848 | 4,678 | ||
Less: Current maturities | 500 | 413 | ||
Long-Term Debt | $ 4,348 | 4,265 | ||
Derivative, Fixed Interest Rate | 4.39% | 4.39% | ||
Interest Expense | $ 259 | 298 | $ 316 | |
6.0% Notes, due 2019 | ||||
Schedule of Debt [Line Items] | ||||
Senior Notes and Debentures | 0 | 413 | ||
5.5% Notes, due 2020 | ||||
Schedule of Debt [Line Items] | ||||
Senior Notes and Debentures | 500 | 500 | ||
5.125% Notes, due 2022 | ||||
Schedule of Debt [Line Items] | ||||
Senior Notes and Debentures | 0 | 800 | ||
2.8% Notes, due 2029 | ||||
Schedule of Debt [Line Items] | ||||
Senior Notes and Debentures | 600 | 0 | ||
5.95% Notes, due 2036 | ||||
Schedule of Debt [Line Items] | ||||
Senior Notes and Debentures | 300 | 300 | ||
6.625% Notes, due 2040 | ||||
Schedule of Debt [Line Items] | ||||
Senior Notes and Debentures | 295 | 295 | ||
6.1% Notes, due 2041 | ||||
Schedule of Debt [Line Items] | ||||
Senior Notes and Debentures | 409 | 409 | ||
Unamortized discount and debt issuance cost [2] | 76 | $ 78 | ||
Debt Instrument, Interest Rate, Effective Percentage | 7.90% | |||
6.625% Notes, due 2042 | ||||
Schedule of Debt [Line Items] | ||||
Senior Notes and Debentures | 178 | $ 178 | ||
4.4% Notes, due 2048 | ||||
Schedule of Debt [Line Items] | ||||
Senior Notes and Debentures | 500 | 500 | ||
3.6% Notes, due 2049 | ||||
Schedule of Debt [Line Items] | ||||
Senior Notes and Debentures | 800 | 0 | ||
4.3% Notes, due 2043 | ||||
Schedule of Debt [Line Items] | ||||
Senior Notes and Debentures | 300 | 300 | ||
7.875% Notes, due 2042 | ||||
Schedule of Debt [Line Items] | ||||
Junior Subordinated Debentures | 600 | 600 | ||
3 Month LIBOR 2.125% Notes, due 2067 [1] | ||||
Schedule of Debt [Line Items] | ||||
Junior Subordinated Debentures | $ 500 | $ 500 |
Debt - Senior Notes (Details)
Debt - Senior Notes (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Aug. 19, 2019 | May 23, 2019 | Jan. 15, 2019 | |
Debt Instrument [Line Items] | |||||||
Proceeds from Debt, Net of Issuance Costs | $ 1,380,000,000 | ||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 100.00% | ||||||
Loss on extinguishment of debt | $ (90,000,000) | $ (6,000,000) | $ 0 | ||||
Senior Note Five Point Seven Five Percent Due in Two Thousand Twenty Three [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt repaid | 265,000,000 | ||||||
Senior Note Two Point Eight due in Two Thousand Twenty Nine [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Increase (Decrease) | 2000.00% | ||||||
Senior Note Three Point Six due in Two Thousand Forty Nine [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Increase (Decrease) | 2500.00% | ||||||
Senior Note Five Point One Twenty Five due in Two Thousand Twenty Two [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt repaid | $ 800 | ||||||
Senior Notes | Senior Note Six Point Zero Percent Due in Two Thousand Nineteen [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt repaid | $ 413,000,000 | ||||||
Senior Notes | Senior Note Two Point Eight due in Two Thousand Twenty Nine [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Face Amount | $ 600,000,000 | ||||||
Senior Notes | Senior Note Three Point Six due in Two Thousand Forty Nine [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Face Amount | $ 800,000,000 | ||||||
Par Value [Member] | Senior Note Five Point Seven Five Percent Due in Two Thousand Twenty Three [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ 265,000,000 | ||||||
Fair Value [Member] | Senior Note Five Point Seven Five Percent Due in Two Thousand Twenty Three [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ 284,000,000 |
Debt - Junior Subordinated Debt
Debt - Junior Subordinated Debt (Details) | 12 Months Ended | |
Dec. 31, 2019 | Apr. 30, 2017 | |
Debt Instrument [Line Items] | ||
Derivative, Fixed Interest Rate | 4.39% | 4.39% |
Debt Instrument, Payment Terms | The Company has the right to defer interest payments for up to a consecutive ten years without giving rise to an event of default. Deferred interest will continue to accrue and will accrue additional interest at the then applicable interest rate. If the Company defers interest payments, the Company generally may not make payments on or redeem or purchase any shares of its capital stock or any of its debt securities or guarantees that rank upon liquidation, dissolution or winding up equally with or junior to the debentures, subject to certain limited exceptions. | |
Junior Subordinated Notes Seven Point Eight Seventy Five Percent Due in Two Thousand Forty Two | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Call Date, Earliest | Apr. 15, 2022 | |
Debt Instrument, Maturity Date | Apr. 15, 2042 | |
LIBOR Plus Two Point One Two Five Percent Junior Subordinated Notes Due Two Thousand Sixty Seven | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Call Date, Earliest | Feb. 15, 2022 | |
Debt Instrument, Maturity Date | Feb. 12, 2067 | |
Interest Rate Contract [Member] | ||
Debt Instrument [Line Items] | ||
Derivative, Maturity Date | Feb. 15, 2027 |
Debt - Long-Term Debt Maturitie
Debt - Long-Term Debt Maturities (Details) $ in Millions | Dec. 31, 2019USD ($) |
Debt Disclosure [Abstract] | |
2020 - Current maturities | $ 500 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
Thereafter | $ 4,482 |
Debt - Additional Information (
Debt - Additional Information (Details) £ in Millions | 1 Months Ended | 12 Months Ended | ||
Jun. 17, 2019 | Apr. 30, 2017 | Dec. 31, 2019USD ($) | Dec. 31, 2019GBP (£) | |
Debt Instrument [Line Items] | ||||
Registration Payment Arrangement, Term | three | |||
Debt Instrument, Payment Terms | The Company has the right to defer interest payments for up to a consecutive ten years without giving rise to an event of default. Deferred interest will continue to accrue and will accrue additional interest at the then applicable interest rate. If the Company defers interest payments, the Company generally may not make payments on or redeem or purchase any shares of its capital stock or any of its debt securities or guarantees that rank upon liquidation, dissolution or winding up equally with or junior to the debentures, subject to certain limited exceptions. | |||
Line of Credit Facility, Description | The Company has a senior unsecured five-year revolving credit facility (“Credit Facility”) that provides up to $750 of unsecured credit through March 29, 2023. Revolving loans from the Credit Facility may be in multiple currencies. U.S. dollar loans will bear interest at a floating rate equivalent to an indexed rate depending on the type of borrowing and a basis point spread based on The Hartford's credit rating and will mature no later than March 29, 2023. Letters of credit issued from the Credit Facility bear a fee based on The Hartford's credit rating and expire no later than March 29, 2024. The Credit Facility requires the Company to maintain a minimum consolidated net worth, excluding AOCI, of $9 billion, limit the ratio of senior debt to capitalization, excluding AOCI, at 35% and meet other customary covenants. The Credit Facility is for general corporate purposes. | |||
Letters of Credit Outstanding, Amount | $ 5,000,000 | |||
Commercial paper outstanding | 0 | |||
Federal Home Loan Bank, Advances, Affordable Housing Program, Principal Outstanding | 0 | |||
Bilateral Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Letters of Credit Outstanding, Amount | 18,000,000 | |||
Debt Instrument, Face Amount | 11 | |||
Debt Instrument, Unused Borrowing Capacity, Amount | 1,000,000 | |||
Club Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Letters of Credit Outstanding, Amount | 165,000,000 | £ 60 | ||
Commercial Paper | ||||
Debt Instrument [Line Items] | ||||
Credit facility | $ 750,000,000 | |||
Senior Note Six Point Zero Percent Due in Two Thousand Nineteen [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | 6.00% | ||
Senior Note Five Point Five Percent Due in Two Thousand Twenty [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | 5.50% | ||
Senior Note Five Point One Two Five Percent Due in Two Thousand Twenty Two [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.125% | 5.125% | ||
Senior Note Two Point Eight Percent Due in Two Thousand Twenty Nine [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 2.80% | 2.80% | ||
Senior Note Five Point Nine Five Percent Due in Two Thousand Thirty Six [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.95% | 5.95% | ||
Senior Note Six Point Six Two Five Percent Due in Two Thousand Forty [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.625% | 6.625% | ||
Senior Note Six Point One Percent Due in Two Thousand Forty One [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.10% | 6.10% | ||
Senior Note Six Point Six Two Five Percent Due in Two Thousand Forty Two [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.625% | 6.625% | ||
Senior Note Four Point Three Percent Due in Two Thousand Fourty Three [Member] [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.30% | 4.30% | ||
Senior Note Four Point Four Due in Two Thousand Forty Eight [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.40% | 4.40% | ||
Senior Note Three Point Six Percent Due in Two Thousand Forty Nine [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.60% | 3.60% | ||
Junior Subordinated Notes Seven Point Eight Seventy Five Percent Due in Two Thousand Forty Two | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 7.875% | 7.875% | ||
LIBOR Plus Two Point One Two Five Percent Junior Subordinated Notes Due Two Thousand Sixty Seven | Interest Rate Subsequent to Call Date [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.125% | 2.125% | ||
Junior Subordinate Notes Eight Point One Two Five Note Due Two Thousand Sixty Eight | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 8.125% | 8.125% | ||
LIBOR Plus Five Point Five Nine Six Percent Junior Subordinated Notes Due Two Thousand Twenty Two [Member] [Domain] | Interest Rate Subsequent to Call Date [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 5.596% | |||
Maximum | Hartford Fire Insurance Company [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Collateral Amount | $ 1,200,000,000 | |||
Maximum | Hartford Life and Accident Insurance Company [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Collateral Amount | $ 600,000,000 |
Commitments and Contingencies -
Commitments and Contingencies - Commitments and Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | 36 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | |
Loss Contingencies [Line Items] | ||||
Other Commitment | $ 1,258 | $ 1,258 | ||
Guaranty liabilities | 89 | 89 | $ 97 | |
Fair value of derivative instrument in a net liability position | 81 | 81 | ||
Collateral already posted | 77 | 77 | ||
Additional collateral required | $ 5 | 5 | ||
Guarantor Obligations, Unlimited Exposure | The guarantees have no limitation as to maximum potential future payments. | |||
Other Assets | ||||
Loss Contingencies [Line Items] | ||||
Premium tax offsets | $ 2 | 2 | $ 2 | |
Limited partnerships and other alternative investments | ||||
Loss Contingencies [Line Items] | ||||
Other Commitment | 852 | 852 | ||
Private Placement Securities | ||||
Loss Contingencies [Line Items] | ||||
Other Commitment | 191 | 191 | ||
Mortgage loans | ||||
Loss Contingencies [Line Items] | ||||
Other Commitment | 215 | 215 | ||
Cancelable mortgage loan [Member] | ||||
Loss Contingencies [Line Items] | ||||
Other Commitment | 130 | 130 | ||
Asbestos | ||||
Loss Contingencies [Line Items] | ||||
Liability for unpaid losses and loss adjustment expenses, at undiscounted amounts | 874 | 874 | ||
Environmental | ||||
Loss Contingencies [Line Items] | ||||
Liability for unpaid losses and loss adjustment expenses, at undiscounted amounts | 120 | 120 | ||
Asbestos and Environmental | ||||
Loss Contingencies [Line Items] | ||||
Liability for unpaid losses and loss adjustment expenses, at undiscounted amounts | 1,147 | 1,147 | ||
Reinsurance Retention Policy, Excess Retention, Amount Reinsured | 860 | |||
Reinsurance Retention Policy, Amount Retained | $ 1,700 | |||
Adverse development from comprehensive annual review | $ 640 | $ 640 | ||
Insurance-related Assessments [Member] | ||||
Loss Contingencies [Line Items] | ||||
Minimum Percentage of Premiums Written Per Year to be Considered for Assessment Under Guaranty Fund | 1.00% | |||
Maximum Percentage of Premiums Written Per Year to be Considered for Assessment Under Guaranty Fund | 2.00% |
Equity - Capital Purchase Progr
Equity - Capital Purchase Program, Additional Information (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Class of Warrant or Right [Line Items] | |||
Warrant exercise price (in USD per share) | $ 8.836 | $ 8.999 | |
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 1.1 | 1 | |
Warrant | |||
Class of Warrant or Right [Line Items] | |||
Warrants exercised (in shares) | 1,900,000 | 300,000 | 1,800,000 |
Equity - Equity Repurchase Prog
Equity - Equity Repurchase Program (Details) shares in Billions | Dec. 31, 2019USD ($)shares |
Equity [Abstract] | |
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | shares | 1 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ | $ 800 |
Equity - Treasury Stock, Value
Equity - Treasury Stock, Value (Details) - Subsequent Event [Member] shares in Millions, $ in Millions | 2 Months Ended |
Feb. 19, 2020USD ($)shares | |
Equity, Class of Treasury Stock [Line Items] | |
Treasury Stock, Shares, Acquired | shares | 1.4 |
Treasury Stock, Value, Acquired, Cost Method | $ | $ 82 |
Equity - Preferred Stock (Detai
Equity - Preferred Stock (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Nov. 06, 2018 | |
Class of Stock [Line Items] | |||
Issuance of preferred shares | 13,800,000 | 13,800 | |
Preferred Stock, Liquidation Preference, Value | $ 345,000,000 | $ 0 | |
Preferred Stock, Redemption Date | Nov. 15, 2023 | ||
Preferred Stock, end of period | |||
Class of Stock [Line Items] | |||
Issuance of preferred shares | 13,800,000 | ||
Preferred Stock, Liquidation Preference, Value | $ 25,000 | ||
Share Price | $ 25 | ||
Proceeds, Issuance of Shares, Share-based Payment Arrangement, Excluding Option Exercised | $ 334,000,000 | ||
Other Restrictions on Payment of Dividends | no | ||
Preferred Stock, Redemption Price Per Share | $ 25,000 | ||
Preferred Stock, Redemption Terms | P90D | ||
Rating Agency Event [Member] | Preferred Stock, end of period | |||
Class of Stock [Line Items] | |||
Preferred Stock, Redemption Price Per Share | $ 25,500 | ||
Regulatory Capital Event [Member] | Preferred Stock, end of period | |||
Class of Stock [Line Items] | |||
Preferred Stock, Redemption Price Per Share | $ 25,000 |
Equity - Statutory Results (Det
Equity - Statutory Results (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statutory Accounting Practices [Line Items] | |||
Statutory Net Income | $ 1,904 | $ 1,700 | $ 253 |
Statutory Capital | 12,852 | 9,842 | |
Group Insurance Policy [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Net Income | 513 | 390 | (1,066) |
Statutory Capital | 2,644 | 2,407 | |
Property and Casualty Insurance Subsidiaries | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Net Income | 1,391 | 1,114 | 950 |
Statutory Capital | 10,208 | 7,435 | |
Life and Annuity Run-Off Business | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Net Income | $ 0 | $ 196 | $ 369 |
Equity - Dividend Restrictions,
Equity - Dividend Restrictions, Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2020 | |
Class of Stock [Line Items] | ||
Percent of insurer's policyholder surplus available for dividends | 10.00% | |
Statutory Dividend Payment Restrictions Disclosure | There are no current restrictions on HFSG Holding Company's ability to pay dividends to its stockholders. | |
HLA | ||
Class of Stock [Line Items] | ||
Proceeds from Dividends Received | $ 300 | |
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments with Regulatory Approval | 534 | |
P&C Subsidiaries | ||
Class of Stock [Line Items] | ||
Proceeds from Dividends Received | 50 | |
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments with Regulatory Approval | 1,600 | |
Mutual Fund [Member] | ||
Class of Stock [Line Items] | ||
Proceeds from Dividends Received | 116 | |
Run-Off HFSG Subsidiary [Member] | ||
Class of Stock [Line Items] | ||
Proceeds from Dividends Received | $ 3 | |
Minimum | HLA | Scenario, Forecast | ||
Class of Stock [Line Items] | ||
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments with Regulatory Approval | $ 300 | |
Minimum | P&C Subsidiaries | Scenario, Forecast | ||
Class of Stock [Line Items] | ||
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments with Regulatory Approval | 850 | |
Maximum | HLA | Scenario, Forecast | ||
Class of Stock [Line Items] | ||
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments with Regulatory Approval | 350 | |
Maximum | P&C Subsidiaries | Scenario, Forecast | ||
Class of Stock [Line Items] | ||
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments with Regulatory Approval | $ 900 |
Equity - Restricted Net Assets,
Equity - Restricted Net Assets, Additional Information (Details) $ in Billions | Dec. 31, 2019USD ($) |
Equity [Abstract] | |
Restricted net assets | $ 15.6 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Current - U.S. Federal | $ 8 | $ (18) | $ 116 |
International | 0 | 0 | 1 |
Total current | 8 | (18) | 117 |
Deferred - U.S. Federal | 476 | 286 | 866 |
International | (9) | 0 | 2 |
Total deferred | 467 | 286 | 868 |
Total income tax expense (benefit) | $ 475 | $ 268 | $ 985 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Tax provision at U.S. federal statutory rate | $ 538 | $ 368 | $ 253 |
Tax-exempt interest | (56) | (66) | (123) |
Effective Income Tax Rate Reconciliation, Deduction, Dividends, Amount | (6) | (2) | (3) |
Executive Compensation | 7 | 11 | 0 |
Stock-based compensation | 7 | 5 | 15 |
Tax Reform | 0 | 39 | (877) |
Other | 1 | (1) | 4 |
Total income tax expense (benefit) | $ 475 | $ 268 | $ 985 |
Income Taxes - Deferred tax ass
Income Taxes - Deferred tax assets (liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Tax Assets | ||
Loss reserves and tax discount | $ 214 | $ 150 |
Unearned premium reserve and other underwriting related reserves | 385 | 355 |
Investment-related items | 130 | 183 |
Employee benefits | 287 | 287 |
Net operating loss carryover | 84 | 521 |
Other | 27 | 1 |
Total Deferred Tax Assets | 1,127 | 1,497 |
Deferred Tax Assets, Valuation Allowance | (4) | 0 |
Deferred Tax Assets, Net of Valuation Allowance | 1,123 | 1,497 |
Deferred Tax Liabilities | ||
Deferred acquisition costs | (143) | (104) |
Net unrealized gains on investments | (458) | (7) |
Other depreciable and amortizable assets | (223) | (135) |
Other | 0 | (3) |
Total Deferred Tax Liabilities | (824) | (249) |
Net Deferred Tax Asset | $ 299 | $ 1,248 |
Income Taxes - Unrecognized tax
Income Taxes - Unrecognized tax benefit (expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance, beginning of period | $ 14 | $ 9 | $ 12 |
Gross increases - tax positions in prior period | 0 | 5 | 3 |
Gross decreases - tax positions in prior period | 0 | 0 | 0 |
Gross decreases - Tax Reform | 0 | 0 | (6) |
Balance, end of period | $ 14 | $ 14 | $ 9 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income from domestic operations | $ 2,644,000,000 | $ 1,753,000,000 | $ 704,000,000 | |
Losses from foreign operations | (84,000,000) | 0 | 19,000,000 | |
Effective Income Tax Rate Reconciliation, Tax Cuts and Jobs Act, Amount | 0 | (39,000,000) | 877,000,000 | |
Deferred Tax Assets, Operating Loss Carryforwards | 84,000,000 | 521,000,000 | ||
Current State and Local Tax Expense (Benefit) | 5,000,000 | 4,000,000 | 5,000,000 | |
Deferred Tax Assets, Valuation Allowance | 4,000,000 | 0 | ||
Tax Cuts and Jobs Act, Income Tax Expense (Benefit) | 877,000,000 | |||
Tax Cuts and Jobs Act, Change in Tax Rate, Deferred Tax Asset, Income Tax Expense | 821,000,000 | |||
Tax Cuts and Jobs Act of 2017, Deferred Tax Asset, Income Tax Expense (Benefit), Sequestration Fee Payable | 56,000,000 | 56,000,000 | ||
Tax Cuts and Jobs Act, Measurement Period Adjustment, Income Tax Expense (Benefit) | 17,000,000 | |||
Tax Cuts and Jobs Act, Accounting Complete, Date | 39,000,000 | |||
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax | 410,000,000 | |||
Income Tax Credits and Adjustments | 11,000,000 | |||
Income Tax Examination, Penalties and Interest Expense | 1,000,000 | 0 | $ 0 | |
Income Tax Examination, Interest Accrued | 0 | 0 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 0 | |||
Income Tax Examination, Penalties Accrued | 0 | |||
Alternative Minimum Tax (AMT) credits [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from Income Tax Refunds | $ 421,000,000 | |||
UNITED STATES | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Deferred Tax Assets, Operating Loss Carryforwards | 77,000,000 | |||
UNITED KINGDOM | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Deferred Tax Assets, Operating Loss Carryforwards | 3,000,000 | |||
Foreign Tax Authority [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Deferred Tax Assets, Operating Loss Carryforwards | 4,000,000 | |||
Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Deferred Tax Assets, Operating Loss Carryforwards | $ 477,000,000 | |||
Income Taxes Receivable, Current | $ 5,000,000 |
Changes in and Reclassificati_3
Changes in and Reclassifications From Accumulated Other Comprehensive Income (Loss) - AOCI Rollforward (Details) - USD ($) $ in Millions | Jan. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2018 | May 31, 2018 | Dec. 31, 2016 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | $ (88) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance | 13,494 | $ 13,101 | $ 13,494 | ||||
OCI, net of tax | 1,631 | (2,237) | $ 1,000 | ||||
Ending balance | 16,270 | 13,101 | 13,494 | ||||
Net Unrealized Gain on Securities | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Cumulative effect of accounting changes, net of tax | 273 | ||||||
Adjusted balance beginning of period | 2,204 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance | 1,931 | 24 | 1,931 | 1,276 | |||
OCI before reclassifications | 1,797 | (2,245) | 857 | ||||
Amounts reclassified from AOCI | (137) | 65 | (202) | ||||
OCI, net of tax | 1,660 | (2,180) | 655 | ||||
Ending balance | 1,684 | 24 | 1,931 | ||||
OTTI Losses in OCI | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Cumulative effect of accounting changes, net of tax | 0 | ||||||
Adjusted balance beginning of period | (3) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance | (3) | (4) | (3) | (3) | |||
OCI before reclassifications | 1 | 0 | 0 | ||||
Amounts reclassified from AOCI | 0 | (1) | 0 | ||||
OCI, net of tax | 1 | (1) | 0 | ||||
Ending balance | (3) | (4) | (3) | ||||
Net Gain (Loss) on Cash Flow Hedging Instruments | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Cumulative effect of accounting changes, net of tax | 2 | ||||||
Adjusted balance beginning of period | 20 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance | 18 | (5) | 18 | 76 | |||
OCI before reclassifications | 22 | 8 | (8) | ||||
Amounts reclassified from AOCI | (8) | (33) | (50) | ||||
OCI, net of tax | 14 | (25) | (58) | ||||
Ending balance | 9 | (5) | 18 | ||||
Foreign Currency Translation Adjustments | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Cumulative effect of accounting changes, net of tax | 4 | ||||||
Adjusted balance beginning of period | 38 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance | 34 | 30 | 34 | 6 | |||
OCI before reclassifications | 4 | (8) | 28 | ||||
Amounts reclassified from AOCI | 0 | 0 | 0 | ||||
OCI, net of tax | 4 | (8) | 28 | ||||
Ending balance | 34 | 30 | 34 | ||||
Pension and Other Postretirement Plan Adjustments | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Cumulative effect of accounting changes, net of tax | (284) | ||||||
Adjusted balance beginning of period | (1,601) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance | (1,317) | (1,624) | (1,317) | (1,692) | |||
OCI before reclassifications | (82) | (61) | (146) | ||||
Amounts reclassified from AOCI | 34 | 38 | 521 | ||||
OCI, net of tax | (48) | (23) | 375 | ||||
Ending balance | (1,672) | (1,624) | (1,317) | ||||
AOCI, net of tax | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Cumulative effect of accounting changes, net of tax | 0 | (5) | $ 0 | ||||
Adjusted balance beginning of period | (1,579) | 658 | $ (337) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance | 663 | (1,579) | 663 | (337) | |||
OCI before reclassifications | 1,742 | (2,306) | 731 | ||||
Amounts reclassified from AOCI | (111) | 69 | 269 | ||||
OCI, net of tax | 1,631 | (2,237) | 1,000 | ||||
Ending balance | $ 52 | $ (1,579) | 663 | ||||
Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Disposal Group, Including Discontinued Operations, Adjustments to AOCI | $ 1,000 | $ 758 | $ 758 | ||||
Equity securities and shadow DAC [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Cumulative effect of accounting changes, net of tax | $ 93 |
Changes in and Reclassificati_4
Changes in and Reclassifications From Accumulated Other Comprehensive Income (Loss) - Reclassification from AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Net realized capital gains (losses) | $ 398 | $ (111) | $ 173 | ||||||||
Net investment income | 1,951 | 1,780 | 1,603 | ||||||||
Interest Expense | 259 | 298 | 316 | ||||||||
Insurance operating costs and other expenses | 4,580 | 4,281 | 4,563 | ||||||||
Income from continuing operations before income taxes | 2,560 | 1,753 | 723 | ||||||||
Income tax expense | 475 | 268 | 985 | ||||||||
Income (loss) from discontinued operations, net of tax, available to common stockholders | 0 | 322 | (2,869) | ||||||||
Net income (loss) | $ 548 | $ 535 | $ 372 | $ 630 | $ 196 | $ 432 | $ 582 | $ 597 | 2,085 | 1,807 | (3,131) |
Amount Reclassified from AOCI | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Net income (loss) | 111 | (69) | (269) | ||||||||
Net Unrealized Gain on Securities | Amount Reclassified from AOCI | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Net realized capital gains (losses) | 174 | (80) | 152 | ||||||||
Income from continuing operations before income taxes | 174 | (80) | 152 | ||||||||
Income tax expense | 37 | (17) | 53 | ||||||||
Income (loss) from discontinued operations, net of tax, available to common stockholders | 0 | (2) | 103 | ||||||||
Net income (loss) | 137 | (65) | 202 | ||||||||
OTTI Losses in OCI | Amount Reclassified from AOCI | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Net realized capital gains (losses) | 0 | 0 | 0 | ||||||||
Income from continuing operations before income taxes | 0 | 0 | 0 | ||||||||
Income tax expense | 0 | 0 | 0 | ||||||||
Income (loss) from discontinued operations, net of tax, available to common stockholders | 0 | 1 | 0 | ||||||||
Net income (loss) | 0 | 1 | 0 | ||||||||
Net Gain (Loss) on Cash Flow Hedging Instruments | Amount Reclassified from AOCI | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Income from continuing operations before income taxes | 10 | 36 | 42 | ||||||||
Income tax expense | 2 | 8 | 15 | ||||||||
Income (loss) from discontinued operations, net of tax, available to common stockholders | 0 | 5 | 23 | ||||||||
Net income (loss) | 8 | 33 | 50 | ||||||||
Net Gain (Loss) on Cash Flow Hedging Instruments | Amount Reclassified from AOCI | Interest rate swaps | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Net realized capital gains (losses) | 2 | 6 | 5 | ||||||||
Net investment income | 4 | 30 | 37 | ||||||||
Interest Expense | 1 | 0 | 0 | ||||||||
Net Gain (Loss) on Cash Flow Hedging Instruments | Amount Reclassified from AOCI | Foreign currency swaps | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Net investment income | 3 | 0 | 0 | ||||||||
Amortization of prior service credit | Amount Reclassified from AOCI | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Insurance operating costs and other expenses | 7 | 7 | 7 | ||||||||
Amortization of actuarial loss | Amount Reclassified from AOCI | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Insurance operating costs and other expenses | (50) | (55) | (61) | ||||||||
Settlement loss | Amount Reclassified from AOCI | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Insurance operating costs and other expenses | 0 | 0 | (747) | ||||||||
Pension and Other Postretirement Plan Adjustments | Amount Reclassified from AOCI | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Income from continuing operations before income taxes | (43) | (48) | (801) | ||||||||
Income tax expense | (9) | (10) | (280) | ||||||||
Net income (loss) | $ (34) | $ (38) | $ (521) |
Employee Benefit Plans - Invest
Employee Benefit Plans - Investment and Savings Plan, Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||
Maximum percentage of plan assets that can be in the common stock of Hartford | 10.00% | ||
Non-elective contribution percent | 2.00% | ||
Percent of employer matching contribution | 6.00% | ||
Limit of employee compensation annually | $ 1,000,000 | ||
Total cost to company related to Investment and Savings Plan | $ 156,000,000 | $ 134,000,000 | $ 113,000,000 |
Employee Benefit Plans - Assump
Employee Benefit Plans - Assumptions, Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.30% | 3.30% | 3.30% |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.33% | 4.35% | |
Expected long-term rate of return on plan assets | 6.45% | 6.60% | 6.60% |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Expected Long-Term Return On Assets Rate | 6.00% | ||
Pension Benefits | Fixed income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 60.00% | ||
Pension Benefits | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 40.00% | ||
Other postretirement obligations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.15% | 4.23% | |
Expected long-term rate of return on plan assets | 6.00% | 6.60% | 6.60% |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Expected Long-Term Return On Assets Rate | 5.60% | ||
Other postretirement obligations | Fixed income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 70.00% | ||
Other postretirement obligations | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 30.00% |
Employee Benefit Plans - Weight
Employee Benefit Plans - Weighted Average Assumptions Used in Calculating the Benefits Obligations and Net Amount Recognized (Details) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 3.30% | 3.30% | 3.30% |
Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 3.33% | 4.35% | |
Other Postretirement Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 3.15% | 4.23% |
Employee Benefit Plans - Weig_2
Employee Benefit Plans - Weighted Average Assumptions Used in Calculating the Net Periodic Benefit Cost (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 4.35% | 3.73% | 4.22% |
Expected long-term rate of return on plan assets | 6.45% | 6.60% | 6.60% |
Other Postretirement Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 4.23% | 3.55% | 3.97% |
Expected long-term rate of return on plan assets | 6.00% | 6.60% | 6.60% |
Employee Benefit Plans - Health
Employee Benefit Plans - Health Care Cost Trend Rate (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||
Defined Benefit Plan Health Care Cost Trend Rate Assumed for Pre Retirement | 7.00% | 6.50% | 6.75% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4.50% | 4.50% | 4.50% |
Year that the rate reaches the ultimate trend rate | 2033 | 2028 | 2028 |
Employee Benefit Plans - Change
Employee Benefit Plans - Change in Benefit Obligation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation — beginning of year | $ 4,000 | $ 4,376 | |
Service cost | 4 | 4 | $ 4 |
Interest cost | 159 | 142 | 170 |
Plan participants’ contributions | 0 | 0 | |
Actuarial loss (gain) | 48 | (6) | |
Amendments | 0 | 0 | |
Changes in assumptions | 488 | (329) | |
Benefits and expenses paid | (201) | (186) | |
Retiree drug subsidy | 0 | 0 | |
Foreign exchange adjustment | 0 | (1) | |
Benefit obligation — end of year | 4,498 | 4,000 | 4,376 |
Other Postretirement Benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation — beginning of year | 220 | 256 | |
Service cost | 0 | 0 | |
Interest cost | 8 | 7 | 8 |
Plan participants’ contributions | 13 | 11 | |
Actuarial loss (gain) | 6 | 0 | |
Amendments | (2) | 0 | |
Changes in assumptions | 19 | (11) | |
Benefits and expenses paid | (41) | (45) | |
Retiree drug subsidy | 0 | 2 | |
Foreign exchange adjustment | 0 | 0 | |
Benefit obligation — end of year | $ 223 | $ 220 | $ 256 |
Employee Benefit Plans - Obliga
Employee Benefit Plans - Obligations and Funded Status, Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Discount rate | 3.30% | 3.30% | 3.30% | |
Fair value of plan assets had fair value of rabbi trusts been included | $ 4,075 | $ 3,483 | ||
Funded status of plan had fair value of rabbi trust assets been included | $ 423 | $ (517) | ||
Pension Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Discount rate | 3.33% | 4.35% | ||
Defined Benefit Plan, Benefit Obligation | $ 4,498 | $ 4,000 | $ 4,376 | |
Transferred pension obligation | $ 1,600 | |||
Defined Benefit Plan, Benefit Obligation, Payment for Settlement | $ (750) | |||
Assets held in rabbi trusts and designated for the non-qualified pension plans | 161 | 139 | ||
Cash | Pension Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Benefit Obligation | 420 | 412 | ||
Change in Assumptions for Defined Benefit Plans [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Benefit Obligation, Period Increase (Decrease) | $ 508 | $ 281 | ||
Discount rate | 3.33% | 4.35% | 3.73% |
Employee Benefit Plans - Chan_2
Employee Benefit Plans - Change Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Benefits | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets — beginning of year | $ 3,344 | $ 3,592 |
Actual return on plan assets | 701 | (172) |
Employer contributions [1] | 70 | 103 |
Benefits paid | (176) | (161) |
Expenses paid | (26) | (17) |
Foreign exchange adjustment | 1 | (1) |
Fair value of plan assets — end of year | 3,914 | 3,344 |
Funded status — end of year | (584) | (656) |
Other Postretirement Benefits | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets — beginning of year | 85 | 114 |
Actual return on plan assets | 12 | (2) |
Employer contributions [1] | 0 | 0 |
Benefits paid | (22) | (27) |
Expenses paid | 0 | 0 |
Foreign exchange adjustment | 0 | 0 |
Fair value of plan assets — end of year | 75 | 85 |
Funded status — end of year | $ (148) | $ (135) |
Employee Benefit Plans - Define
Employee Benefit Plans - Defined Benefit Pension Plans with an Accumulated Benefit Obligations in Excess of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Retirement Benefits [Abstract] | ||
Projected benefit obligation | $ 4,498 | $ 4,000 |
Accumulated benefit obligation | 4,498 | 4,000 |
Fair value of plan assets | $ 3,914 | $ 3,344 |
Employee Benefit Plans - Amount
Employee Benefit Plans - Amounts Recognized in the Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Other liabilities | $ 584 | $ 656 |
Other Postretirement Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Other liabilities | $ 148 | $ 135 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Cost (Benefit) and Other Amounts Recognized in Other Comprehensive Income (Loss), Additional Information (Details) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||
Sep. 30, 2017 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Reduction in interest cost component of net periodic interest | $ 32 | |||||
Pension Benefits | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Pre-tax settlement charge | $ 0 | $ 0 | 750,000,000 | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlements, Net of Tax | (488,000,000) | |||||
Reduction to stockholder's equity | 144,000,000 | |||||
Employer contributions [1] | 70,000,000 | 103,000,000 | ||||
Increase to unrecognized net loss from pension settlement transaction | $ 750,000,000 | |||||
Pension Benefits | Qualified Pension Plan | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Employer contributions [1] | $ 280,000,000 | |||||
Discount rate used to measure interest cost | 3.37% | 3.58% | ||||
Discount rate used to measure interest cost, historical method | 3.92% | 4.22% | ||||
Pension Benefits | Non-Qualified Pension Plan | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Discount rate used to measure interest cost | 3.55% | |||||
Discount rate used to measure interest cost, historical method | 4.19% | |||||
Other Postretirement Benefits | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Pre-tax settlement charge | 0 | |||||
Employer contributions [1] | $ 0 | $ 0 | ||||
Discount rate used to measure interest cost | 3.13% | |||||
Discount rate used to measure interest cost, historical method | 3.97% |
Employee Benefit Plans - Net Pe
Employee Benefit Plans - Net Periodic Benefits Cost and Other Recognized in the OCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Benefits | |||
Defined Benefit Plan, Net Periodic Cost (Benefit) | |||
Service cost | $ (4) | $ (4) | $ (4) |
Interest cost | 159 | 142 | 170 |
Expected return on plan assets | (226) | (227) | (267) |
Amortization of prior service credit | 0 | 0 | |
Amortization of actuarial loss | 44 | 49 | 56 |
Settlements | 0 | 0 | 750 |
Net periodic cost (benefit) | (19) | (32) | 713 |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) | |||
Amortization of actuarial loss | 44 | 49 | 56 |
Settlement loss | 0 | 0 | 750 |
Amortization of prior service credit | 0 | 0 | 0 |
Prior service cost (credit) | (88) | (91) | (209) |
Prior service cost | 0 | 0 | 0 |
Total | (44) | (42) | 597 |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | |||
Net loss | (2,052) | (2,008) | (1,966) |
Prior service credit | 0 | 0 | 0 |
Total | (2,052) | (2,008) | (1,966) |
Other Postretirement Benefits | |||
Defined Benefit Plan, Net Periodic Cost (Benefit) | |||
Service cost | 0 | 0 | |
Interest cost | 8 | 7 | 8 |
Expected return on plan assets | (4) | (7) | (8) |
Amortization of prior service credit | (7) | (7) | (7) |
Amortization of actuarial loss | 6 | 6 | 5 |
Settlements | 0 | ||
Net periodic cost (benefit) | 3 | (1) | (2) |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) | |||
Amortization of actuarial loss | 6 | 6 | 5 |
Settlement loss | 0 | 0 | 0 |
Amortization of prior service credit | (7) | (6) | (7) |
Prior service cost (credit) | (18) | 3 | (12) |
Prior service cost | 2 | 0 | 0 |
Total | (17) | 3 | (14) |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | |||
Net loss | (132) | (120) | (129) |
Prior service credit | 67 | 72 | 78 |
Total | $ (65) | $ (48) | $ (51) |
Employee Benefit Plans - Defi_2
Employee Benefit Plans - Defined Benefit Plan, Information about Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Significant Unobservable Inputs (Level 3) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Settlements | $ 0 | $ 0 | ||
Corporate | Significant Unobservable Inputs (Level 3) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Settlements | 0 | 0 | ||
Residential mortgage-backed securities (RMBS) | Significant Unobservable Inputs (Level 3) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Settlements | 0 | 0 | ||
Foreign government/government agencies | Significant Unobservable Inputs (Level 3) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Settlements | 0 | 0 | ||
Mortgage loans | Significant Unobservable Inputs (Level 3) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Settlements | 0 | 0 | ||
Other investments | Significant Unobservable Inputs (Level 3) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Settlements | 0 | 0 | ||
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value | 3,345 | 3,345 | $ 3,874 | $ 3,345 |
Defined Benefit Plan, Fair Value of Plan Assets, Excluded Investment Payables | 40 | 1 | ||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 3,345 | |||
Fair value of plan assets - end of year | 3,874 | 3,345 | ||
Pension Benefits | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value | 739 | 739 | 724 | 739 |
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 739 | |||
Fair value of plan assets - end of year | 724 | 739 | ||
Pension Benefits | Significant Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value | 1,997 | 1,997 | 2,420 | 1,997 |
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 1,997 | |||
Fair value of plan assets - end of year | 2,420 | 1,997 | ||
Pension Benefits | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value | 151 | 151 | $ 160 | 151 |
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 151 | 161 | ||
Realized gains,net | 3 | 0 | ||
Changes in unrealized gains, net | 6 | (2) | ||
Purchases | 7 | 6 | ||
Sales | (11) | (14) | ||
Transfers into Level 3 | 4 | 0 | ||
Transfers out of Level 3 | 0 | |||
Fair value of plan assets - end of year | 160 | 151 | ||
Pension Benefits | Equity Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation | 40.00% | |||
Pension Benefits | Fixed income securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation | 60.00% | |||
Pension Benefits | Short-term Investments [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | $ 88 | 110 | ||
Pension Benefits | Short-term Investments [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | 34 | 50 | ||
Pension Benefits | Short-term Investments [Member] | Significant Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | 54 | 60 | ||
Pension Benefits | Short-term Investments [Member] | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | 0 | 0 | ||
Pension Benefits | Corporate | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | 2,085 | 1,677 | ||
Pension Benefits | Corporate | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | 0 | 0 | ||
Pension Benefits | Corporate | Significant Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | 2,058 | 1,663 | ||
Pension Benefits | Corporate | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | 27 | 14 | ||
Plan assets at fair value | 14 | 14 | 27 | 14 |
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 14 | 14 | ||
Realized gains,net | 3 | 0 | ||
Changes in unrealized gains, net | 2 | (1) | ||
Purchases | 7 | 5 | ||
Sales | (3) | 4 | ||
Transfers into Level 3 | 4 | 0 | ||
Fair value of plan assets - end of year | 27 | 14 | ||
Pension Benefits | Residential mortgage-backed securities (RMBS) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | 61 | 63 | ||
Pension Benefits | Residential mortgage-backed securities (RMBS) | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | 0 | 0 | ||
Pension Benefits | Residential mortgage-backed securities (RMBS) | Significant Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | 61 | 62 | ||
Pension Benefits | Residential mortgage-backed securities (RMBS) | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | 0 | 1 | ||
Plan assets at fair value | 0 | 2 | 0 | 1 |
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 1 | 2 | ||
Realized gains,net | 0 | 0 | ||
Changes in unrealized gains, net | 0 | 0 | ||
Purchases | 0 | 0 | ||
Sales | (1) | (1) | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Fair value of plan assets - end of year | 0 | 1 | ||
Pension Benefits | U.S. Treasuries | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | 101 | 130 | ||
Pension Benefits | U.S. Treasuries | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | 0 | 10 | ||
Pension Benefits | U.S. Treasuries | Significant Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | 101 | 120 | ||
Pension Benefits | U.S. Treasuries | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | 0 | 0 | ||
Pension Benefits | Foreign government/government agencies | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | 18 | 17 | ||
Pension Benefits | Foreign government/government agencies | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | 0 | 0 | ||
Pension Benefits | Foreign government/government agencies | Significant Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | 17 | 15 | ||
Pension Benefits | Foreign government/government agencies | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | 1 | 2 | ||
Plan assets at fair value | 2 | 2 | 1 | 2 |
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 2 | 1 | ||
Realized gains,net | 0 | 0 | ||
Changes in unrealized gains, net | 0 | 0 | ||
Purchases | 0 | 1 | ||
Sales | (1) | 0 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Fair value of plan assets - end of year | 1 | 2 | ||
Pension Benefits | CMBS | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | 32 | 22 | ||
Pension Benefits | CMBS | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | 0 | 0 | ||
Pension Benefits | CMBS | Significant Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | 32 | 22 | ||
Pension Benefits | CMBS | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | 0 | 0 | ||
Pension Benefits | Other Fixed Income [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | 97 | 53 | ||
Pension Benefits | Other Fixed Income [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | 0 | 0 | ||
Pension Benefits | Other Fixed Income [Member] | Significant Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | 96 | 52 | ||
Pension Benefits | Other Fixed Income [Member] | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | 1 | 1 | ||
Pension Benefits | Mortgage loans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | 131 | 133 | ||
Pension Benefits | Mortgage loans | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | 0 | 0 | ||
Pension Benefits | Mortgage loans | Significant Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | 0 | 0 | ||
Pension Benefits | Mortgage loans | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | 131 | 133 | ||
Plan assets at fair value | 131 | 140 | 131 | 133 |
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 133 | 140 | ||
Realized gains,net | 0 | 0 | ||
Changes in unrealized gains, net | 4 | (1) | ||
Purchases | 0 | 0 | ||
Sales | (6) | 6 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | |||
Fair value of plan assets - end of year | 131 | 133 | ||
Pension Benefits | Domestic | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | 430 | 379 | ||
Pension Benefits | Domestic | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | 429 | 376 | ||
Pension Benefits | Domestic | Significant Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | 1 | 3 | ||
Pension Benefits | Domestic | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | 0 | 0 | ||
Pension Benefits | International | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | 261 | 303 | ||
Pension Benefits | International | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | 261 | 303 | ||
Pension Benefits | International | Significant Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | 0 | 0 | ||
Pension Benefits | International | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | 0 | 0 | ||
Pension Benefits | Total pension plan assets at fair value, in the fair value hierarchy | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | 3,304 | 2,887 | ||
Pension Benefits | Total pension plan assets at fair value, in the fair value hierarchy | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | 724 | 739 | ||
Pension Benefits | Total pension plan assets at fair value, in the fair value hierarchy | Significant Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | 2,420 | 1,997 | ||
Pension Benefits | Total pension plan assets at fair value, in the fair value hierarchy | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value in the fair value hierarchy | 160 | 151 | ||
Pension Benefits | Private Market Alternatives | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at net asset value | 358 | 272 | ||
Pension Benefits | Private Market Alternatives | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at net asset value | ||||
Pension Benefits | Private Market Alternatives | Significant Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at net asset value | ||||
Pension Benefits | Private Market Alternatives | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at net asset value | ||||
Pension Benefits | Hedge funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at net asset value | 212 | 186 | ||
Pension Benefits | Hedge funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at net asset value | ||||
Pension Benefits | Hedge funds | Significant Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at net asset value | ||||
Pension Benefits | Hedge funds | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at net asset value | ||||
Pension Benefits | Other investments | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value | 1 | 4 | 1 | 1 |
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 1 | 4 | ||
Realized gains,net | 0 | 0 | ||
Changes in unrealized gains, net | 0 | 0 | ||
Purchases | 0 | 0 | ||
Sales | 0 | 3 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | |||
Fair value of plan assets - end of year | 1 | 1 | ||
Pension Benefits | Defined Benefit Plan, Equity Securities, Common Stock [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value | 1 | 1 | ||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - end of year | 1 | |||
Other Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value | 85 | 85 | 75 | 85 |
Defined Benefit Plan, Fair Value of Plan Assets, Excluded Investment Payables | 1 | |||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 85 | |||
Fair value of plan assets - end of year | 75 | 85 | ||
Other Postretirement Benefits | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value | 33 | 33 | 22 | 33 |
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 33 | |||
Fair value of plan assets - end of year | 22 | 33 | ||
Other Postretirement Benefits | Significant Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value | 52 | 52 | $ 53 | 52 |
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 52 | |||
Fair value of plan assets - end of year | 53 | 52 | ||
Other Postretirement Benefits | Equity Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation | 30.00% | |||
Other Postretirement Benefits | Fixed income securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation | 70.00% | |||
Other Postretirement Benefits | Short-term Investments [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value | 4 | 4 | $ 3 | 4 |
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 4 | |||
Fair value of plan assets - end of year | 3 | 4 | ||
Other Postretirement Benefits | Short-term Investments [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value | 4 | 4 | 3 | 4 |
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 4 | |||
Fair value of plan assets - end of year | 3 | 4 | ||
Other Postretirement Benefits | Short-term Investments [Member] | Significant Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value | 0 | 0 | 0 | 0 |
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 0 | |||
Fair value of plan assets - end of year | 0 | 0 | ||
Other Postretirement Benefits | Corporate | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value | 19 | 19 | 18 | 19 |
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 19 | |||
Fair value of plan assets - end of year | 18 | 19 | ||
Other Postretirement Benefits | Corporate | Significant Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value | 19 | 19 | 18 | 19 |
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 19 | |||
Fair value of plan assets - end of year | 18 | 19 | ||
Other Postretirement Benefits | Corporate | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value | 0 | 1 | 0 | |
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 0 | 1 | ||
Fair value of plan assets - end of year | 0 | |||
Other Postretirement Benefits | Residential mortgage-backed securities (RMBS) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value | 15 | 15 | 12 | 15 |
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 15 | |||
Fair value of plan assets - end of year | 12 | 15 | ||
Other Postretirement Benefits | Residential mortgage-backed securities (RMBS) | Significant Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value | 15 | 15 | 12 | 15 |
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 15 | |||
Fair value of plan assets - end of year | 12 | 15 | ||
Other Postretirement Benefits | U.S. Treasuries | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value | 19 | 19 | 20 | 19 |
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 19 | |||
Fair value of plan assets - end of year | 20 | 19 | ||
Other Postretirement Benefits | U.S. Treasuries | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value | 6 | 6 | 6 | |
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 6 | |||
Fair value of plan assets - end of year | 6 | |||
Other Postretirement Benefits | U.S. Treasuries | Significant Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value | 13 | 13 | 20 | 13 |
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 13 | |||
Fair value of plan assets - end of year | 20 | 13 | ||
Other Postretirement Benefits | Foreign government/government agencies | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value | 1 | 1 | 0 | 1 |
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 1 | |||
Fair value of plan assets - end of year | 0 | 1 | ||
Other Postretirement Benefits | Foreign government/government agencies | Significant Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value | 1 | 1 | 0 | 1 |
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 1 | |||
Fair value of plan assets - end of year | 0 | 1 | ||
Other Postretirement Benefits | CMBS | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value | 2 | 2 | 1 | 2 |
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 2 | |||
Fair value of plan assets - end of year | 1 | 2 | ||
Other Postretirement Benefits | CMBS | Significant Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value | 2 | 2 | 1 | 2 |
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 2 | |||
Fair value of plan assets - end of year | 1 | 2 | ||
Other Postretirement Benefits | Other Fixed Income [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value | 2 | 2 | 2 | 2 |
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 2 | |||
Fair value of plan assets - end of year | 2 | 2 | ||
Other Postretirement Benefits | Other Fixed Income [Member] | Significant Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value | 2 | 2 | 2 | 2 |
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 2 | |||
Fair value of plan assets - end of year | 2 | 2 | ||
Other Postretirement Benefits | Other Fixed Income [Member] | Significant Unobservable Inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Decrease for Sale | 1 | |||
Other Postretirement Benefits | Large-cap | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value | 23 | 23 | 19 | 23 |
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 23 | |||
Fair value of plan assets - end of year | 19 | 23 | ||
Other Postretirement Benefits | Large-cap | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value | 23 | 23 | 19 | 23 |
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 23 | |||
Fair value of plan assets - end of year | 19 | 23 | ||
Other Postretirement Benefits | Large-cap | Significant Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value | 0 | 0 | 0 | |
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 0 | |||
Fair value of plan assets - end of year | 0 | |||
Other Postretirement Benefits | Defined Benefit Plan, Equity Securities, Common Stock [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value | 0 | 0 | $ 0 | $ 0 |
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 0 | |||
Fair value of plan assets - end of year | $ 0 | $ 0 | ||
Minimum | Pension Benefits | Equity Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation | 5.00% | |||
Minimum | Pension Benefits | Fixed income securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation | 50.00% | |||
Minimum | Pension Benefits | Alternative assets | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation | 0.00% | |||
Minimum | Other Postretirement Benefits | Equity Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation | 15.00% | |||
Minimum | Other Postretirement Benefits | Fixed income securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation | 55.00% | |||
Minimum | Other Postretirement Benefits | Alternative assets | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation | 0.00% | |||
Maximum | Pension Benefits | Equity Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation | 35.00% | |||
Maximum | Pension Benefits | Fixed income securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation | 70.00% | |||
Maximum | Pension Benefits | Alternative assets | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation | 45.00% | |||
Maximum | Other Postretirement Benefits | Equity Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation | 45.00% | |||
Maximum | Other Postretirement Benefits | Fixed income securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation | 85.00% | |||
Maximum | Other Postretirement Benefits | Alternative assets | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation | 0.00% |
Employee Benefit Plans - Benefi
Employee Benefit Plans - Benefit Payments (Details) $ in Millions | Dec. 31, 2019USD ($) |
Pension Benefits | |
Defined Benefit Plan, Expected Future Benefit Payments [Abstract] | |
2020 | $ 240 |
2021 | 248 |
2022 | 254 |
2023 | 256 |
2024 | 258 |
2025 - 2029 | 1,291 |
Total | 2,547 |
Other Postretirement Benefits | |
Defined Benefit Plan, Expected Future Benefit Payments [Abstract] | |
2020 | 25 |
2021 | 23 |
2022 | 20 |
2023 | 18 |
2024 | 16 |
2025 - 2029 | 63 |
Total | $ 165 |
Stock Compensation Plans - Stoc
Stock Compensation Plans - Stock Compensation Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Stock-based compensation plans expense | $ 125 | $ 130 | $ 116 |
Income tax benefit | (21) | (27) | (41) |
Excess tax benefit on awards vested, exercised and expired | (6) | (5) | (15) |
Total stock-based compensation plans expense, after-tax | $ 98 | $ 98 | $ 60 |
Stock Compensation Plans - St_2
Stock Compensation Plans - Stock Option Awards (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Options (in thousands) | |||
Outstanding at beginning of year (in shares) | 5,490 | ||
Granted (in shares) | 1,089 | ||
Exercised (in shares) | (733) | ||
Forfeited (in shares) | 0 | ||
Expired (in shares) | 0 | ||
Outstanding at end of year (in shares) | 5,846 | 5,490 | |
Number of Options (in thousands), Outstanding, fully vested and expected to vest (in shares) | 5,836 | ||
Number of Options (in thousands), Exercisable at end of year (in shares) | 3,921 | ||
Weighted Average Exercise Price | |||
Outstanding at beginning of year (in USD per share) | $ 40.84 | ||
Granted (in USD per share) | 49.01 | ||
Exercised (in USD per share) | 32.29 | ||
Forfeited (in USD per share) | 0 | ||
Expired (in USD per share) | 0 | ||
Outstanding at end of year (in USD per share) | 43.43 | $ 40.84 | |
Weighted Average Exercise Price, Outstanding, fully vested and expected to vest (in USD per share) | 64.77 | ||
Weighted Average Exercise Price, Exercisable at end of year (in USD per share) | $ 40 | ||
Weighted Average Remaining Contractual Term, Outstanding at end of year | 6 years 3 months 18 days | ||
Weighted Average Remaining Contractual Term, Outstanding, fully vested and expected to vest | 6 years 3 months 18 days | ||
Weighted Average Remaining Contractual Term, Exercisable at end of year | 5 years 2 months 12 days | ||
Aggregate Intrinsic Value, Outstanding at end of year | $ 101 | ||
Aggregate Intrinsic Value, Outstanding, fully vested and expected to vest | 98 | ||
Aggregate Intrinsic Value, Exercisable at end of year | $ 81 | ||
Employee Stock Option | |||
Deferred Compensation Arrangement With Individual Share Based Payments [Line Items] | |||
Expected dividend yield | 2.50% | 1.80% | 1.90% |
Expected annualized spot volatility minimum | 20.70% | 20.80% | 21.80% |
Expected annualized spot volatility maximum | 36.70% | 36.50% | 37.90% |
Weighted average annualized volatility | 29.30% | 29.00% | 29.50% |
Risk-free spot rate minimum | 2.40% | 1.50% | 0.40% |
Risk-free spot rate maximum | 2.60% | 2.90% | 2.40% |
Expected term | 5 years 10 months 24 days | 5 years 8 months 12 days | 5 years |
Stock Compensation Plans - Perf
Stock Compensation Plans - Performance Shares (Details) - Performance Shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility of common stock | 19.40% | 20.80% | 20.30% |
Average correlation coefficient of peer companies | 50.00% | 54.00% | 60.00% |
Risk-free spot rate | 2.40% | 2.40% | 1.50% |
Term | 3 years | 3 years | 3 years |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average volatility of peer companies | 16.00% | 17.00% | 15.00% |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average volatility of peer companies | 27.00% | 25.00% | 25.00% |
Stock Compensation Plans - Tota
Stock Compensation Plans - Total Share Awards (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted Stock and Restricted Stock Units | |||
Number of Shares (in thousands) | |||
Non-vested at beginning of year (in shares) | 3,446 | ||
Granted (in shares) | 1,702 | ||
Vested (in shares) | (1,105) | ||
Forfeited (in shares) | (435) | ||
Non-vested at end of year (in shares) | 3,608 | 3,446 | |
Weighted-Average Grant-Date Fair Value | |||
Non-vested at beginning of year (in USD per share) | $ 48.43 | ||
Granted (in USD per share) | 50.49 | $ 53.11 | $ 48.90 |
Vested (in USD per share) | 42.73 | ||
Forfeited (in USD per share) | 51.02 | ||
Non-vested at end of year (in USD per share) | $ 50.85 | $ 48.43 | |
Performance Shares | |||
Number of Shares (in thousands) | |||
Non-vested at beginning of year (in shares) | 735 | ||
Granted (in shares) | 422 | ||
Performance based adjustment (in shares) | 391 | ||
Vested (in shares) | (739) | ||
Forfeited (in shares) | (49) | ||
Non-vested at end of year (in shares) | 760 | 735 | |
Weighted-Average Grant-Date Fair Value | |||
Non-vested at beginning of year (in USD per share) | $ 49.56 | ||
Granted (in USD per share) | 54.07 | $ 50.26 | $ 48.89 |
Performance based adjustment (in USD per share) | 48.89 | ||
Vested (in USD per share) | 48.89 | ||
Forfeited (in USD per share) | 50.12 | ||
Non-vested at end of year (in USD per share) | $ 52.34 | $ 49.56 |
Stock Compensation Plans - Addi
Stock Compensation Plans - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation cost related to non-vested awards not yet recognized | $ 70 | ||
Weighted average period of compensation cost recognized | 2 years | ||
Maximum number of shares that may be issued (in shares) | 15,400,000 | ||
Shares available for future issuance (in shares) | 4,084,500 | ||
Award vesting period | 3 years | ||
Weighted average grant-date fair value of options granted during period (in shares) | $ 11.71 | $ 14.04 | $ 12.38 |
Total intrinsic value of options exercised during period | $ 16 | $ 14 | $ 8 |
Share-based Payment Arrangement, Cash Used to Settle Award | 0 | 0 | 0 |
Stock-based compensation plans expense | $ 125 | $ 130 | $ 116 |
Discount rate for employee stock purchase plan | 5.00% | ||
Shares sold during period (in shares) | 213,472 | 219,661 | 204,533 |
Weighted average per share fair value of discount (in USD per share) | $ 2.82 | $ 2.56 | $ 2.63 |
Discount rate from market price per share, purchase date | 5.00% | ||
Subsidiary Stock Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation plans expense | $ 11 | $ 9 | $ 9 |
Subsidiary stock repurchased | $ 8 | ||
Employee Stock Option Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Term | 3 years | 3 years | 3 years |
Stock-based Compensation Arrangement by Share-based Payment Award, Performance Period | 3 years | ||
Weighted average grant-date fair value (in USD per share) | $ 54.07 | $ 50.26 | $ 48.89 |
Total fair value of shares vested during period | $ 102 | $ 114 | $ 94 |
Performance Shares | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Target performance ratio | 200.00% | ||
Performance Shares | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Target performance ratio | 0.00% | ||
Performance Shares One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Performance Shares Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 5 years | ||
Restricted Stock and Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant-date fair value (in USD per share) | $ 50.49 | $ 53.11 | $ 48.90 |
The Hartford 2014 Incentive Stock Plan (ISOP) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Term | 10 years | ||
Maximum number of shares that may be issued (in shares) | 12,000,000 | ||
Shares available for future issuance (in shares) | 5,268,108 | ||
The Hartford 2014 Incentive Stock Plan (ISOP) | Employee Stock Option | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Term | 10 years | ||
The Hartford 2014 Incentive Stock Plan (ISOP) | Employee Stock Option One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Service period | 1 year | ||
The Hartford 2014 Incentive Stock Plan (ISOP) | Restricted Stock Units One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
The Hartford 2014 Incentive Stock Plan (ISOP) | Restricted Stock Units Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Term | 5 years | ||
The Hartford 2014 Incentive Stock Plan (ISOP) | Restricted Stock Units | Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 1 year | ||
The Hartford 2014 Incentive Stock Plan (ISOP) | Restricted Stock Units | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years |
Leases Additional Information (
Leases Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Operating Lease, Right-of-Use Asset | $ 191 | ||
Operating Lease, Liability | 201 | ||
Operating Leases, Rent Expense | $ 56 | $ 57 | |
Operating Leases, Income Statement, Sublease Revenue | $ 4 | $ 3 | |
Forecast [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Operating Lease, Right-of-Use Asset | $ 54 |
Leases Components of Lease Expe
Leases Components of Lease Expense (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 49 |
Short-term lease cost | 2 |
Variable lease cost | 1 |
Sublease income | (5) |
Total lease costs included in insurance operating costs and other expenses | $ 47 |
Leases Supplemental Operating L
Leases Supplemental Operating Lease Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows for operating leases (for the nine months ended) | $ 50 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 42 |
Weighted-average remaining lease term in years for operating leases | 6 years |
Weighted-average discount rate for operating leases | 3.50% |
Leases Maturities of Operating
Leases Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
2019 | $ 51 | $ 44 |
2020 | 40 | 36 |
2021 | 34 | 25 |
2022 | 31 | 18 |
2023 | 21 | 16 |
Thereafter | 46 | 34 |
Lessee, Operating Lease, Liability, Payments, Due | 223 | $ 173 |
Less: Discount on lease payments to present value | 22 | |
Total lease liability | $ 201 |
Leases Future Minimum Lease Com
Leases Future Minimum Lease Commitments (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
2019 | $ 51 | $ 44 |
2020 | 40 | 36 |
2021 | 34 | 25 |
2022 | 31 | 18 |
2023 | 21 | 16 |
Thereafter | 46 | 34 |
Lessee, Operating Lease, Liability, Payments, Due | $ 223 | $ 173 |
Leases Sublease Income (Details
Leases Sublease Income (Details) $ in Millions | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 2 |
2020 | 1 |
2021 | 1 |
2022 | 0 |
2023 | 0 |
Thereafter | $ 0 |
Business Dispositions and Dis_3
Business Dispositions and Discontinued Operations - Additional Information (Details) - USD ($) $ in Millions | May 31, 2018 | May 11, 2017 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Long-term Debt | $ 4,348 | $ 4,265 | |||||
Loss on discontinued operations | 0 | (202) | $ 3,257 | ||||
Income (Loss) from Ongoing Equity Method Investment in Discontinued Operation after Disposal | 66 | ||||||
Discontinued Operation, Amount of Continuing Cash Flows after Disposal | $ 67 | ||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | P&C Runoff Subsidiaries | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Cash proceeds from sale of business | $ 272 | ||||||
Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Cash proceeds from sale of business | $ 1.4 | ||||||
Dividends paid | $ 300 | ||||||
Ownership interest retained, percentage | 9.70% | ||||||
Ownership interest retained | $ 164 | ||||||
Long-term Debt | 142 | 142 | |||||
Consideration received | 1,500 | ||||||
Loss on discontinued operations | 3,300 | ||||||
Discontinued Operation, Amount of Adjustment to Prior Period Gain (Loss) on Disposal, Net of Tax | 202 | (3,257) | |||||
Adjustments to AOCI | $ 758 | $ 1,000 | $ 758 | ||||
Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | Shadow DAC [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Discontinued Operation, Amount of Adjustment to Prior Period Gain (Loss) on Disposal, Net of Tax | 10 | ||||||
Equity [Member] | Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Discontinued Operation, Amount of Adjustment to Prior Period Gain (Loss) on Disposal, Net of Tax | $ (193) | ||||||
Deferred Tax Asset [Domain] | Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Discontinued Operation, Amount of Adjustment to Prior Period Gain (Loss) on Disposal, Net of Tax | (141) | ||||||
Operating Income (Loss) [Member] | Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Discontinued Operation, Amount of Adjustment to Prior Period Gain (Loss) on Disposal, Net of Tax | $ 104 | ||||||
Other Income [Member] | Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | Minimum | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Discontinued Operation, Period of Continuing Involvement after Disposal | 5 years | ||||||
Other Income [Member] | Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | Maximum | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Discontinued Operation, Period of Continuing Involvement after Disposal | 24 months |
Business Dispositions and Dis_4
Business Dispositions and Discontinued Operations - Major Classes of Assets and Liabilities Transferred by the Company to the Buyer in Connection with Sale (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | May 31, 2018 | Dec. 31, 2017 | May 10, 2017 |
Liabilities | |||||
Long-term debt | $ 4,348 | $ 4,265 | |||
Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | |||||
Assets | |||||
Cash and investments | $ 27,058 | $ 30,135 | |||
Reinsurance recoverables | 20,718 | 20,785 | |||
Loss accrual | (3,044) | (3,257) | |||
Other assets | 2,907 | 1,439 | |||
Separate account assets | 110,773 | 115,834 | |||
Assets | 158,412 | 164,936 | |||
Liabilities | |||||
Reserve for future policy benefits and unpaid loss and loss adjustment expenses | 14,308 | 14,482 | |||
Other policyholder funds and benefits payable | 28,680 | 29,228 | |||
Long-term debt | 142 | 142 | |||
Other liabilities | 2,222 | 2,756 | |||
Separate account liabilities | 110,773 | 115,834 | |||
Liabilities | $ 156,125 | $ 162,442 | |||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | P&C Runoff Subsidiaries | |||||
Assets | |||||
Cash and investments | $ 669 | ||||
Reinsurance recoverables | 268 | ||||
Assets | 937 | ||||
Liabilities | |||||
Reserve for future policy benefits and unpaid loss and loss adjustment expenses | 653 | ||||
Other liabilities | 12 | ||||
Liabilities | $ 665 |
Business Dispositions and Dis_5
Business Dispositions and Discontinued Operations - Reconciliation of the Major Line Items Constituting Pretax Profit (Loss) of Discontinued Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Benefits, losses and expenses | |||
Income (loss) from discontinued operations, net of tax | $ 0 | $ 322 | $ (2,869) |
Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | |||
Revenues | |||
Earned premiums | 39 | 106 | |
Fee income and other | 382 | 912 | |
Net investment income | 519 | 1,289 | |
Net realized capital losses | (68) | (53) | |
Total revenues | 872 | 2,254 | |
Benefits, losses and expenses | |||
Benefits, losses and loss adjustment expenses | 535 | 1,416 | |
Amortization of DAC | 58 | 45 | |
Insurance operating costs and other expenses | 157 | 368 | |
Total benefits, losses and expenses | 750 | 1,829 | |
Income before income taxes | 122 | 425 | |
Income tax expense | 2 | 37 | |
Income from operations of discontinued operations, net of tax | 120 | 388 | |
Discontinued Operation, Amount of Adjustment to Prior Period Gain (Loss) on Disposal, Net of Tax | 202 | (3,257) | |
Income (loss) from discontinued operations, net of tax | $ 322 | $ (2,869) |
Business Dispositions and Dis_6
Business Dispositions and Discontinued Operations - Cash Flows from Discontinued Operations (Details) - Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net cash provided by operating activities from discontinued operations | $ 603 | $ 797 |
Net cash provided by investing activities from discontinued operations | 463 | 1,466 |
Net cash used in financing activities from discontinued operations | (737) | (884) |
Cash paid for interest | 0 | 11 |
Return to capital to parent | $ 619 | $ 1,396 |
Quarterly Results (Unaudited)_2
Quarterly Results (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 5,361 | $ 5,347 | $ 5,092 | $ 4,940 | $ 4,633 | $ 4,842 | $ 4,789 | $ 4,691 | $ 20,740 | $ 18,955 | $ 17,162 |
Benefits, losses and expenses | 4,685 | 4,694 | 4,636 | 4,165 | 4,466 | 4,312 | 4,252 | 4,172 | 18,180 | 17,202 | 16,439 |
Income from continuing operations, net of tax | 548 | 535 | 372 | 630 | 196 | 427 | 434 | 428 | 2,085 | 1,485 | (262) |
Income from discontinued operations, net of tax | 0 | 0 | 0 | 0 | 0 | 5 | 148 | 169 | 0 | 322 | (2,869) |
Net income (loss) | 548 | 535 | 372 | 630 | 196 | 432 | 582 | 597 | 2,085 | 1,807 | (3,131) |
Preferred stock dividends | 5 | 11 | 0 | 5 | 6 | 0 | 0 | 0 | 21 | 6 | 0 |
Net income (loss) available to common stockholders | $ 543 | $ 524 | $ 372 | $ 625 | $ 190 | $ 432 | $ 582 | $ 597 | $ 2,064 | $ 1,801 | $ (3,131) |
Basic | |||||||||||
Income (loss) from continuing operations, net of tax, available to common stockholders | $ 1.51 | $ 1.45 | $ 1.03 | $ 1.74 | $ 0.53 | $ 1.19 | $ 1.21 | $ 1.20 | $ 5.72 | $ 4.13 | $ (0.72) |
(Loss) income from discontinued operations, net of tax (in USD per share) | 0 | 0 | 0 | 0 | 0 | 0.01 | 0.41 | 0.47 | 0 | 0.90 | (7.89) |
Net income (loss) available to common stockholders | 1.51 | 1.45 | 1.03 | 1.74 | 0.53 | 1.20 | 1.62 | 1.67 | 5.72 | 5.03 | (8.61) |
Diluted | |||||||||||
Income (loss) from continuing operations, net of tax, available to common stockholders | 1.49 | 1.43 | 1.02 | 1.71 | 0.52 | 1.17 | 1.19 | 1.18 | 5.66 | 4.06 | (0.72) |
(Loss) income from discontinued operations, net of tax (in USD per share) | 0 | 0 | 0 | 0 | 0 | 0.02 | 0.41 | 0.46 | 0 | 0.89 | (7.89) |
Net income (loss) available to common stockholders | $ 1.49 | $ 1.43 | $ 1.02 | $ 1.71 | $ 0.52 | $ 1.19 | $ 1.60 | $ 1.64 | $ 5.66 | $ 4.95 | $ (8.61) |
Schedule I Summary of Investm_2
Schedule I Summary of Investments - Other Than Investments in Affiliates (Details) $ in Millions | Dec. 31, 2019USD ($) |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | $ 51,012 |
Amount at which shown on Balance Sheet | 53,030 |
U.S. government and government agencies and authorities (guaranteed and sponsored) | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 5,478 |
Fair Value | 5,644 |
Amount at which shown on Balance Sheet | 5,644 |
States, municipalities and political subdivisions | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 8,763 |
Fair Value | 9,498 |
Amount at which shown on Balance Sheet | 9,498 |
Foreign government/government agencies | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 1,057 |
Fair Value | 1,123 |
Amount at which shown on Balance Sheet | 1,123 |
Public utilities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 2,019 |
Fair Value | 2,147 |
Amount at which shown on Balance Sheet | 2,147 |
All other corporate bonds | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 14,416 |
Fair Value | 15,249 |
Amount at which shown on Balance Sheet | 15,249 |
All other mortgage-backed and asset-backed securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 8,345 |
Fair Value | 8,487 |
Amount at which shown on Balance Sheet | 8,487 |
Total fixed maturities, available-for-sale | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 40,078 |
Fair Value | 42,148 |
Amount at which shown on Balance Sheet | 42,148 |
Fixed maturities, at fair value using fair value option | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 11 |
Fair Value | 11 |
Amount at which shown on Balance Sheet | 11 |
Total fixed maturities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 40,089 |
Fair Value | 42,159 |
Amount at which shown on Balance Sheet | 42,159 |
Industrial, miscellaneous and all other | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 1,471 |
Fair Value | 1,471 |
Amount at which shown on Balance Sheet | 1,471 |
Non-redeemable preferred stocks | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 186 |
Fair Value | 186 |
Amount at which shown on Balance Sheet | 186 |
Equity securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 1,657 |
Fair Value | 1,657 |
Amount at which shown on Balance Sheet | 1,657 |
Mortgage loans | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 4,215 |
Fair Value | 4,350 |
Amount at which shown on Balance Sheet | 4,215 |
Futures, options and miscellaneous | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 376 |
Fair Value | 320 |
Amount at which shown on Balance Sheet | 320 |
Short-term investments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 2,917 |
Fair Value | 2,921 |
Amount at which shown on Balance Sheet | 2,921 |
Investments in partnerships and trusts | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 1,758 |
Amount at which shown on Balance Sheet | $ 1,758 |
Schedule II Condensed Financi_2
Schedule II Condensed Financial Information of the Hartford Financial Services, Inc. - Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | |||||
Total fixed maturities | $ 42,148 | $ 35,652 | |||
Equity securities, at fair value | 1,657 | 1,214 | $ 1,000 | ||
Short-term investments | 2,921 | 4,283 | |||
Cash | 185 | 112 | |||
Deferred income taxes | 299 | 1,248 | |||
Other assets | 2,366 | 2,173 | |||
Total assets | 70,817 | 62,307 | |||
Liabilities and Stockholders’ Equity | |||||
Long-term debt | 4,348 | 4,265 | |||
Other liabilities | 5,157 | 4,808 | |||
Total liabilities | 54,547 | 49,206 | |||
Total stockholders’ equity | 16,270 | 13,101 | $ 13,494 | ||
Total liabilities and stockholders’ equity | 70,817 | 62,307 | |||
Parent Company | |||||
Assets | |||||
Total fixed maturities | 294 | 785 | |||
Equity securities, at fair value | 31 | 30 | |||
Other investments | 159 | 103 | |||
Short-term investments | 874 | 2,603 | |||
Cash | 0 | 3 | $ 2 | $ 0 | |
Investment in affiliates | 21,243 | 15,074 | |||
Deferred income taxes | 561 | 992 | |||
Unamortized issue costs | 2 | 3 | |||
Other assets | 71 | 78 | |||
Total assets | 23,235 | 19,671 | |||
Liabilities and Stockholders’ Equity | |||||
Net payable to affiliates | 1,602 | 1,530 | |||
Short-term debt (includes current maturities of long-term debt) | 500 | 413 | |||
Long-term debt | 4,348 | 4,265 | |||
Other liabilities | 515 | 362 | |||
Total liabilities | 6,965 | 6,570 | |||
Total stockholders’ equity | 16,270 | 13,101 | |||
Total liabilities and stockholders’ equity | $ 23,235 | $ 19,671 |
Schedule II Condensed Financi_3
Schedule II Condensed Financial Information of the Hartford Financial Services, Inc. - Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidated Statements of Operations and Comprehensive Income | |||||||||||
Net investment income | $ 1,951 | $ 1,780 | $ 1,603 | ||||||||
Net realized capital gains (losses) | 395 | (112) | 165 | ||||||||
Total revenues | $ 5,361 | $ 5,347 | $ 5,092 | $ 4,940 | $ 4,633 | $ 4,842 | $ 4,789 | $ 4,691 | 20,740 | 18,955 | 17,162 |
Interest expense | 259 | 298 | 316 | ||||||||
Loss on extinguishment of debt | (90) | (6) | 0 | ||||||||
Total benefits, losses and expenses | 4,685 | 4,694 | 4,636 | 4,165 | 4,466 | 4,312 | 4,252 | 4,172 | 18,180 | 17,202 | 16,439 |
Income tax expense | 475 | 268 | 985 | ||||||||
Net income (loss) | $ 548 | $ 535 | $ 372 | $ 630 | $ 196 | $ 432 | $ 582 | $ 597 | 2,085 | 1,807 | (3,131) |
Other comprehensive income (loss) - parent company: | |||||||||||
Comprehensive income (loss) | 3,716 | (430) | (2,131) | ||||||||
Parent Company | |||||||||||
Consolidated Statements of Operations and Comprehensive Income | |||||||||||
Net investment income | 50 | 41 | 15 | ||||||||
Net realized capital gains (losses) | 3 | 37 | (1) | ||||||||
Total revenues | 53 | 78 | 14 | ||||||||
Interest expense | 255 | 298 | 316 | ||||||||
Loss on extinguishment of debt | (68) | (6) | 0 | ||||||||
Pension settlement | 0 | 0 | (750) | ||||||||
Other expense (income) | 15 | (6) | 1 | ||||||||
Total benefits, losses and expenses | 338 | 298 | 1,067 | ||||||||
Loss before income taxes and earnings of subsidiaries | (285) | (220) | (1,053) | ||||||||
Income tax expense | (60) | (630) | 106 | ||||||||
Income (loss) before earnings of subsidiaries | (225) | 410 | (1,159) | ||||||||
Earnings of subsidiaries | 2,310 | 1,397 | (1,972) | ||||||||
Net income (loss) | 2,085 | 1,807 | (3,131) | ||||||||
Other comprehensive income (loss) - parent company: | |||||||||||
Change in net gain/loss on cash-flow hedging instruments | (24) | 8 | 2 | ||||||||
Change in net unrealized gain/loss on securities | 5 | (271) | 280 | ||||||||
Change in pension and other postretirement plan adjustments | (35) | (26) | 107 | ||||||||
Other comprehensive income (loss), net of taxes before other comprehensive income of subsidiaries | (54) | (289) | 389 | ||||||||
Other comprehensive income (loss) of subsidiaries | 1,685 | (1,948) | 611 | ||||||||
Total other comprehensive income (loss) | 1,631 | (2,237) | 1,000 | ||||||||
Comprehensive income (loss) | $ 3,716 | $ (430) | $ (2,131) |
Schedule II Condensed Financi_4
Schedule II Condensed Financial Information of the Hartford Financial Services, Inc. - Cash Flow Disclosures (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Activities | |||||||||||
Net income (loss) | $ 548 | $ 535 | $ 372 | $ 630 | $ 196 | $ 432 | $ 582 | $ 597 | $ 2,085 | $ 1,807 | $ (3,131) |
Loss on extinguishment of debt | (90) | (6) | 0 | ||||||||
Realized Gain (Loss) on Marketable Securities, Cost Method Investments, and Other Investments | (395) | 165 | (111) | ||||||||
Cash provided by operating activities | 3,489 | 2,843 | 2,186 | ||||||||
Investing Activities | |||||||||||
Net proceeds from (payments for) short-term investments | 1,491 | (3,460) | (144) | ||||||||
Proceeds from Sale of Debt Securities, Available-for-sale | (18,499) | (24,700) | (31,646) | ||||||||
Payments for (Proceeds from) Other Investing Activities | 13 | (3) | 21 | ||||||||
Net additions to property and equipment | (105) | (122) | (250) | ||||||||
Net cash used for investing activities | (2,148) | (1,962) | (1,442) | ||||||||
Financing Activities | |||||||||||
Treasury stock acquired | (200) | (1,028) | |||||||||
Dividends paid on common shares | (433) | (379) | (341) | ||||||||
Payments of Ordinary Dividends, Preferred Stock and Preference Stock | 21 | ||||||||||
Net cash used for financing activities | (1,191) | (1,467) | (979) | ||||||||
Cash and restricted cash — beginning of period | 112 | 112 | |||||||||
Cash and restricted cash — end of period | 185 | 112 | 185 | 112 | |||||||
Parent Company | |||||||||||
Operating Activities | |||||||||||
Net income (loss) | 2,085 | 1,807 | (3,131) | ||||||||
Loss on extinguishment of debt | (68) | (6) | 0 | ||||||||
Dividends from subsidiaries | 18 | 3,115 | 2,142 | ||||||||
Equity in net loss (income) of subsidiaries | (2,310) | (1,397) | 1,972 | ||||||||
Realized Gain (Loss) on Marketable Securities, Cost Method Investments, and Other Investments | 3 | (37) | 2 | ||||||||
Change in operating assets and liabilities | 640 | (716) | 1,076 | ||||||||
Cash provided by operating activities | 504 | 2,778 | 2,061 | ||||||||
Investing Activities | |||||||||||
Net proceeds from (payments for) short-term investments | 1,731 | (2,161) | (121) | ||||||||
Proceeds from Sale of Debt Securities, Available-for-sale | (478) | 0 | 0 | ||||||||
Payments for (Proceeds from) Other Investing Activities | (33) | 0 | 0 | ||||||||
Net additions to property and equipment | 0 | (69) | 0 | ||||||||
Payments to Acquire Businesses, Net of Cash Acquired | (2,098) | 0 | 0 | ||||||||
Capital contributions to subsidiaries | (20) | (148) | (633) | ||||||||
Net cash used for investing activities | 58 | (2,378) | (754) | ||||||||
Financing Activities | |||||||||||
Proceeds from issuance of debt | 1,376 | 490 | 500 | ||||||||
Repayments of long-term debt | (1,278) | (826) | (416) | ||||||||
Preferred stock issued, net of issuance costs | 0 | 334 | 0 | ||||||||
Treasury stock acquired | (200) | (1,028) | |||||||||
Net issuance (return of) shares under incentive and stock compensation plans | (6) | (18) | (20) | ||||||||
Dividends paid on common shares | (436) | (379) | (341) | ||||||||
Payments of Ordinary Dividends, Preferred Stock and Preference Stock | 21 | 0 | 0 | ||||||||
Net cash used for financing activities | (565) | (399) | (1,305) | ||||||||
Net increase (decrease) in cash | (3) | 1 | 2 | ||||||||
Cash and restricted cash — beginning of period | $ 3 | $ 2 | 3 | 2 | 0 | ||||||
Cash and restricted cash — end of period | $ 0 | $ 3 | 0 | 3 | 2 | ||||||
Supplemental Disclosure of Cash Flow Information | |||||||||||
Interest Paid | $ 255 | $ 290 | $ 312 |
Schedule III Supplementary In_2
Schedule III Supplementary Insurance Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Supplementary Insurance Information [Abstract] | ||||
Deferred Policy Acquisition Costs | $ 785 | $ 670 | ||
Unpaid Losses and Loss Adjustment Expenses | 36,517 | 33,029 | ||
Reserve for Future Policy Benefits | 635 | 642 | ||
Unearned Premiums | 6,635 | 5,282 | ||
Other Policyholder Funds and Benefits Payable | 755 | 767 | ||
Earned Premiums, Fee Income and Other | 18,394 | 17,287 | $ 15,394 | |
Net Investment Income | 1,951 | 1,780 | 1,603 | |
Benefits, Losses and Loss Adjustment Expenses | 11,472 | 11,165 | 10,174 | |
Amortization of Deferred Policy Acquisition Costs [1] | 1,622 | 1,384 | 1,372 | |
Insurance Operating Costs and Other Expenses | 5,086 | 4,653 | 4,893 | |
Net Written Premiums | 11,595 | 10,408 | 10,517 | |
Group Insurance Policy [Member] | ||||
Schedule of Supplementary Insurance Information [Abstract] | ||||
Unpaid Losses and Loss Adjustment Expenses | 8,256 | 8,445 | 8,512 | $ 5,772 |
Operating Segments | Property and Casualty, Commercial Insurance [Member] | ||||
Schedule of Supplementary Insurance Information [Abstract] | ||||
Deferred Policy Acquisition Costs | 615 | 495 | ||
Unpaid Losses and Loss Adjustment Expenses | 23,363 | 19,455 | ||
Reserve for Future Policy Benefits | 0 | 0 | ||
Unearned Premiums | 5,015 | 3,589 | ||
Other Policyholder Funds and Benefits Payable | 0 | 0 | ||
Earned Premiums, Fee Income and Other | 8,326 | 7,081 | 6,902 | |
Net Investment Income | 1,129 | 997 | 949 | |
Benefits, Losses and Loss Adjustment Expenses | 5,192 | 4,112 | 4,322 | |
Amortization of Deferred Policy Acquisition Costs [1] | 1,296 | 1,048 | 1,009 | |
Insurance Operating Costs and Other Expenses | 1,776 | 1,396 | 1,381 | |
Net Written Premiums | 8,452 | 7,136 | 6,956 | |
Operating Segments | Property and Casualty, Personal Insurance [Member] | ||||
Schedule of Supplementary Insurance Information [Abstract] | ||||
Deferred Policy Acquisition Costs | 111 | 117 | ||
Unpaid Losses and Loss Adjustment Expenses | 2,201 | 2,456 | ||
Reserve for Future Policy Benefits | 0 | 0 | ||
Unearned Premiums | 1,578 | 1,643 | ||
Other Policyholder Funds and Benefits Payable | 0 | 0 | ||
Earned Premiums, Fee Income and Other | 3,318 | 3,523 | 3,819 | |
Net Investment Income | 179 | 155 | 141 | |
Benefits, Losses and Loss Adjustment Expenses | 2,185 | 2,763 | 3,000 | |
Amortization of Deferred Policy Acquisition Costs [1] | 259 | 275 | 309 | |
Insurance Operating Costs and Other Expenses | 702 | 684 | 649 | |
Net Written Premiums | 3,131 | 3,276 | 3,561 | |
Operating Segments | Property & Casualty Other Operations | ||||
Schedule of Supplementary Insurance Information [Abstract] | ||||
Deferred Policy Acquisition Costs | 0 | 0 | ||
Unpaid Losses and Loss Adjustment Expenses | 2,697 | 2,673 | ||
Reserve for Future Policy Benefits | 0 | 0 | ||
Unearned Premiums | 3 | 7 | ||
Other Policyholder Funds and Benefits Payable | 0 | 0 | ||
Earned Premiums, Fee Income and Other | 2 | 0 | 0 | |
Net Investment Income | 84 | 90 | 106 | |
Benefits, Losses and Loss Adjustment Expenses | 21 | 65 | 18 | |
Amortization of Deferred Policy Acquisition Costs [1] | 0 | 0 | 0 | |
Insurance Operating Costs and Other Expenses | 12 | 13 | 9 | |
Net Written Premiums | 0 | (4) | 0 | |
Operating Segments | Group Insurance Policy [Member] | ||||
Schedule of Supplementary Insurance Information [Abstract] | ||||
Deferred Policy Acquisition Costs | 51 | 52 | ||
Unpaid Losses and Loss Adjustment Expenses | 8,256 | 8,445 | ||
Reserve for Future Policy Benefits | 411 | 427 | ||
Unearned Premiums | 39 | 43 | ||
Other Policyholder Funds and Benefits Payable | 459 | 455 | ||
Earned Premiums, Fee Income and Other | 5,603 | 5,598 | 3,677 | |
Net Investment Income | 486 | 474 | 381 | |
Benefits, Losses and Loss Adjustment Expenses | 4,055 | 4,214 | 2,803 | |
Amortization of Deferred Policy Acquisition Costs [1] | 54 | 45 | 33 | |
Insurance Operating Costs and Other Expenses | 1,352 | 1,342 | 924 | |
Net Written Premiums | 0 | 0 | 0 | |
Operating Segments | Mutual Fund [Member] | ||||
Schedule of Supplementary Insurance Information [Abstract] | ||||
Deferred Policy Acquisition Costs | 8 | 6 | ||
Unpaid Losses and Loss Adjustment Expenses | 0 | 0 | ||
Reserve for Future Policy Benefits | 0 | 0 | ||
Unearned Premiums | 0 | 0 | ||
Other Policyholder Funds and Benefits Payable | 0 | 0 | ||
Earned Premiums, Fee Income and Other | 999 | 1,032 | 992 | |
Net Investment Income | 7 | 5 | 3 | |
Benefits, Losses and Loss Adjustment Expenses | 0 | 0 | 0 | |
Amortization of Deferred Policy Acquisition Costs [1] | 12 | 16 | 21 | |
Insurance Operating Costs and Other Expenses | 813 | 831 | 805 | |
Net Written Premiums | 0 | 0 | 0 | |
Corporate | ||||
Schedule of Supplementary Insurance Information [Abstract] | ||||
Deferred Policy Acquisition Costs | 0 | 0 | ||
Unpaid Losses and Loss Adjustment Expenses | 0 | 0 | ||
Reserve for Future Policy Benefits | 224 | 215 | ||
Unearned Premiums | 0 | 0 | ||
Other Policyholder Funds and Benefits Payable | 296 | 312 | ||
Earned Premiums, Fee Income and Other | 146 | 53 | 4 | |
Net Investment Income | 66 | 59 | 23 | |
Benefits, Losses and Loss Adjustment Expenses | 19 | 11 | 31 | |
Amortization of Deferred Policy Acquisition Costs [1] | 1 | 0 | 0 | |
Insurance Operating Costs and Other Expenses | 431 | 387 | 1,125 | |
Net Written Premiums | $ 12 | $ 0 | $ 0 |
Schedule IV Reinsurance (Detail
Schedule IV Reinsurance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Life insurance in-force | |||
Gross Amount | $ 879,496 | $ 722,048 | $ 700,860 |
Ceded Amount | 18,483 | 16,674 | 9,493 |
Assumed From Other Companies | 254,739 | 442,817 | 301,573 |
Net Amount | $ 1,115,752 | $ 1,148,191 | $ 992,940 |
Percentage of Amount Assumed to Net | 23.00% | 39.00% | 30.00% |
Insurance revenues | |||
Gross Amount | $ 16,132 | $ 14,439 | $ 14,204 |
Ceded Amount | 1,027 | 660 | 650 |
Assumed From Other Companies | 1,988 | 2,265 | 678 |
Premiums Earned, Net | $ 16,923 | $ 15,869 | $ 14,141 |
Percentage of Amount Assumed to Net | 12.00% | 14.00% | 5.00% |
Property and Casualty Insurance Products | |||
Insurance revenues | |||
Gross Amount | $ 12,010 | $ 10,824 | $ 10,923 |
Ceded Amount | 936 | 599 | 600 |
Assumed From Other Companies | 416 | 221 | 232 |
Premiums Earned, Net | $ 11,490 | $ 10,446 | $ 10,555 |
Percentage of Amount Assumed to Net | 4.00% | 2.00% | 2.00% |
Life insurance and annuities | |||
Insurance revenues | |||
Gross Amount | $ 1,739 | $ 1,551 | $ 1,526 |
Ceded Amount | 25 | 22 | 14 |
Assumed From Other Companies | 807 | 1,082 | 232 |
Premiums Earned, Net | $ 2,521 | $ 2,611 | $ 1,744 |
Percentage of Amount Assumed to Net | 32.00% | 41.00% | 13.00% |
Accident and health insurance | |||
Insurance revenues | |||
Gross Amount | $ 2,383 | $ 2,064 | $ 1,755 |
Ceded Amount | 66 | 39 | 36 |
Assumed From Other Companies | 765 | 962 | 214 |
Premiums Earned, Net | $ 3,082 | $ 2,987 | $ 1,933 |
Percentage of Amount Assumed to Net | 25.00% | 32.00% | 11.00% |
Earned premiums and fees [Member] | |||
Insurance revenues | |||
Premiums Earned, Net | $ 17,093 | $ 16,044 | $ 14,232 |
Schedule V Valuation and Qual_2
Schedule V Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Movement in Valuation allowance and reserves | |||
Balance January 1, | $ 135 | ||
Balance December 31, | 145 | $ 135 | |
Allowance for doubtful accounts and other | |||
Movement in Valuation allowance and reserves | |||
Balance January 1, | 135 | 132 | $ 137 |
Increase (decrease) in Costs and Expenses | 42 | 40 | 42 |
Write-offs/ Payments/ Other | (32) | (37) | (47) |
Balance December 31, | 145 | 135 | 132 |
Allowance for uncollectible reinsurance | |||
Movement in Valuation allowance and reserves | |||
Balance January 1, | 126 | 104 | 165 |
Increase (decrease) in Costs and Expenses | 2 | 3 | 4 |
Write-offs/ Payments/ Other | (14) | 19 | (65) |
Balance December 31, | 114 | 126 | 104 |
Valuation allowance on mortgage loans | |||
Movement in Valuation allowance and reserves | |||
Balance January 1, | 1 | 1 | 0 |
Increase (decrease) in Costs and Expenses | (1) | 0 | 1 |
Write-offs/ Payments/ Other | 0 | 0 | 0 |
Balance December 31, | 0 | 1 | 1 |
Valuation allowance for deferred taxes | |||
Movement in Valuation allowance and reserves | |||
Balance January 1, | 0 | 0 | 0 |
Increase (decrease) in Costs and Expenses | 0 | 0 | 0 |
Write-offs/ Payments/ Other | 4 | 0 | 0 |
Balance December 31, | $ 4 | $ 0 | $ 0 |
Schedule VI Supplementary Inf_2
Schedule VI Supplementary Information Concerning Property and Casualty Insurance Operations (Details) - Property and Casualty Insurance Products - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Line Items] | |||
Discount Deducted From Liabilities | $ 388 | $ 388 | $ 410 |
Losses and Loss Adjustment Expenses Incurred Related to: Current Year | 7,463 | 7,107 | 7,381 |
Losses and Loss Adjustment Expenses Incurred Related to: Prior Year | (65) | (167) | (41) |
Paid Losses and Loss Adjustment Expenses | $ 6,748 | $ 6,406 | $ 6,579 |
Financial Guarantee Insurance Contracts, Claim Liability, Weighted Average Risk Free Discount Rate | 2.91% | 2.98% | 3.06% |