Cover Document
Cover Document - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 27, 2021 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
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 Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 347,185,658 | |
Entity Central Index Key | 0000874766 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
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 $0.01 per share | |
Trading Symbol | HIG PR G | |
Security Exchange Name | NYSE |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues | ||||
Earned premiums | $ 4,460 | $ 4,234 | $ 8,803 | $ 8,625 |
Fee income | 375 | 298 | 730 | 618 |
Net investment income | 581 | 339 | 1,090 | 798 |
Net realized capital gains (losses) | 147 | 109 | 227 | (122) |
Other revenues | 26 | 88 | 38 | 105 |
Total revenues | 5,589 | 5,068 | 10,888 | 10,024 |
Benefits, losses and expenses | ||||
Benefits, losses and loss adjustment expenses | 2,786 | 2,847 | 6,136 | 5,763 |
Amortization of deferred policy acquisition costs ("DAC") | 417 | 429 | 833 | 866 |
Insurance operating costs and other expenses | 1,202 | 1,125 | 2,346 | 2,301 |
Interest expense | 57 | 57 | 114 | 121 |
Amortization of other intangible assets | 17 | 18 | 35 | 37 |
Restructuring and other costs | 0 | 0 | 11 | 0 |
Total benefits, losses and expenses | 4,479 | 4,476 | 9,475 | 9,088 |
Income before income taxes | 1,110 | 592 | 1,413 | 936 |
Income tax expense | 205 | 124 | 259 | 195 |
Net income | 905 | 468 | 1,154 | 741 |
Preferred stock dividends | 5 | 5 | 10 | 10 |
Net income available to common stockholders | $ 900 | $ 463 | $ 1,144 | $ 731 |
EPS | ||||
Basic | $ 2.54 | $ 1.29 | $ 3.21 | $ 2.04 |
Diluted | $ 2.51 | $ 1.29 | $ 3.17 | $ 2.03 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 905 | $ 468 | $ 1,154 | $ 741 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Change in net unrealized gain on fixed maturities | 295 | 1,428 | (630) | 371 |
Change in unrealized losses on fixed maturities for which an allowance for credit losses has been recorded | 0 | 0 | 0 | 1 |
Changes in net gain on cash flow hedging instruments | (5) | (5) | 0 | 39 |
Change in foreign currency translation adjustments | 2 | 1 | 3 | (7) |
Changes in pension and other postretirement plan adjustments | (14) | (12) | (27) | (23) |
Other comprehensive income (loss), net of tax | 306 | 1,436 | (600) | 427 |
Comprehensive income | $ 1,211 | $ 1,904 | $ 554 | $ 1,168 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Investments: | ||
Fixed maturities, available-for-sale, at fair value (amortized cost of $41,220 and $41,561, and ACL of $4 and $23) | $ 44,023 | $ 45,035 |
Equity securities, at fair value | 1,693 | 1,438 |
Limited partnerships and other alternative investments | 2,565 | 2,082 |
Other investments | 232 | 201 |
Short-term investments | 3,398 | 3,283 |
Total investments | 56,787 | 56,532 |
Cash | 177 | 151 |
Restricted cash | 131 | 88 |
Premiums receivable and agents' balances (net of ACL of $134 and $152) | 4,622 | 4,268 |
Reinsurance recoverables (net of allowance for uncollectible reinsurance of $99 and $108) | 6,217 | 6,011 |
Deferred policy acquisition costs | 852 | 789 |
Deferred income taxes, net | 151 | 46 |
Goodwill | 1,911 | 1,911 |
Property and equipment, net | 1,067 | 1,122 |
Other intangible assets, net | 904 | 950 |
Other assets | 1,733 | 2,066 |
Assets held for sale | 180 | 177 |
Total assets | 74,732 | 74,111 |
Liabilities | ||
Unpaid losses and loss adjustment expenses | 38,702 | 37,855 |
Reserve for future policy benefits | 611 | 638 |
Other policyholder funds and benefits payable | 685 | 701 |
Unearned premiums | 7,167 | 6,629 |
Long-term debt | 4,354 | 4,352 |
Other liabilities | 4,805 | 5,222 |
Liabilities held for sale | 164 | 158 |
Total liabilities | 56,488 | 55,555 |
Stockholders' Equity | ||
Preferred stock, $0.01 par value — 50,000,000 shares authorized, 13,800 shares issued at June 30, 2021 and December 31, 2020, aggregate liquidation preference of $345 | 334 | 334 |
Common Stock, Value, Issued | 4 | 4 |
Additional paid-in capital | 4,330 | 4,322 |
Retained earnings | 14,813 | 13,918 |
Treasury Stock, Value | (1,807) | (1,192) |
Accumulated other comprehensive income, net of tax | 570 | 1,170 |
Total stockholders’ equity | 18,244 | 18,556 |
Total liabilities and stockholders’ equity | $ 74,732 | $ 74,111 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Millions | Total | Preferred Stock [Member] | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | AOCI Attributable to Parent [Member] | Share-based Payment Arrangement [Member]Treasury Stock | Cumulative Effect, Period of Adoption, Adjustment [Member]Retained Earnings | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]Retained Earnings |
Beginning balance at Dec. 31, 2019 | $ 4,312 | $ 12,685 | $ (1,117) | $ 52 | $ 12,667 | |||||
Beginning balance (Accounting Standards Update 2016-13 [Member]) at Dec. 31, 2019 | $ (18) | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Issuance of shares under incentive and stock compensation plans | (84) | |||||||||
Stock-based compensation plans expense | 71 | |||||||||
Net income | $ 741 | 741 | ||||||||
Dividends declared on preferred stock | (10) | (10) | ||||||||
Dividends declared on common stock | (231) | |||||||||
Treasury stock acquired | (150) | (150) | ||||||||
Issuance of shares under incentive and stock compensation plans | $ 91 | |||||||||
Net shares acquired related to employee incentive and stock compensation plans | (35) | |||||||||
Total other comprehensive income | 427 | |||||||||
Ending balance at Jun. 30, 2020 | $ 17,072 | $ 334 | $ 4 | 4,299 | 13,167 | (1,211) | 479 | |||
Preferred Shares Outstanding, beginning of period at Dec. 31, 2019 | 13,800 | |||||||||
Preferred Shares Outstanding | ||||||||||
Issuance of preferred shares | 0 | |||||||||
Preferred Shares Outstanding, end of period at Jun. 30, 2020 | 13,800 | |||||||||
Common Shares Outstanding, beginning of period (in thousands) at Dec. 31, 2019 | 359,570 | |||||||||
Shares Granted or Issued, Share-based Payment Arrangement [Abstract] | ||||||||||
Treasury stock acquired | (2,700) | (2,661) | ||||||||
Issuance of shares under incentive and stock compensation plans | 1,860 | |||||||||
Return of shares under incentive and stock compensation plans to treasury stock | (670) | |||||||||
Common Shares Outstanding, at end of period at Jun. 30, 2020 | 358,099 | |||||||||
Shares Granted or Issued, Share-based Payment Arrangement [Abstract] | ||||||||||
Cash dividends declared per common share | $ 0.650 | |||||||||
Cash dividends declared per preferred share | $ 750 | |||||||||
Beginning balance at Mar. 31, 2020 | 4,286 | 12,819 | (1,220) | (957) | 12,819 | |||||
Beginning balance (Accounting Standards Update 2016-13 [Member]) at Mar. 31, 2020 | 0 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Issuance of shares under incentive and stock compensation plans | (5) | |||||||||
Stock-based compensation plans expense | 18 | |||||||||
Net income | $ 468 | 468 | ||||||||
Dividends declared on preferred stock | (5) | (5) | ||||||||
Dividends declared on common stock | (115) | |||||||||
Treasury stock acquired | 0 | |||||||||
Issuance of shares under incentive and stock compensation plans | 9 | |||||||||
Net shares acquired related to employee incentive and stock compensation plans | 0 | |||||||||
Total other comprehensive income | 1,436 | |||||||||
Ending balance at Jun. 30, 2020 | $ 17,072 | $ 334 | $ 4 | 4,299 | 13,167 | (1,211) | 479 | |||
Preferred Shares Outstanding, beginning of period at Mar. 31, 2020 | 13,800 | |||||||||
Preferred Shares Outstanding | ||||||||||
Issuance of preferred shares | 0 | |||||||||
Preferred Shares Outstanding, end of period at Jun. 30, 2020 | 13,800 | |||||||||
Common Shares Outstanding, beginning of period (in thousands) at Mar. 31, 2020 | 357,934 | |||||||||
Shares Granted or Issued, Share-based Payment Arrangement [Abstract] | ||||||||||
Treasury stock acquired | 0 | |||||||||
Issuance of shares under incentive and stock compensation plans | 175 | |||||||||
Return of shares under incentive and stock compensation plans to treasury stock | (10) | |||||||||
Common Shares Outstanding, at end of period at Jun. 30, 2020 | 358,099 | |||||||||
Shares Granted or Issued, Share-based Payment Arrangement [Abstract] | ||||||||||
Cash dividends declared per common share | $ 0.325 | |||||||||
Cash dividends declared per preferred share | $ 375 | |||||||||
Beginning balance at Dec. 31, 2020 | $ 18,556 | 4,322 | 13,918 | (1,192) | 1,170 | 0 | 13,918 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Issuance of shares under incentive and stock compensation plans | (71) | |||||||||
Stock-based compensation plans expense | 79 | |||||||||
Net income | 1,154 | 1,154 | ||||||||
Dividends declared on preferred stock | (10) | (10) | ||||||||
Dividends declared on common stock | (249) | |||||||||
Treasury stock acquired | (691) | (691) | ||||||||
Issuance of shares under incentive and stock compensation plans | 102 | |||||||||
Net shares acquired related to employee incentive and stock compensation plans | (26) | |||||||||
Total other comprehensive income | (600) | |||||||||
Ending balance at Jun. 30, 2021 | $ 18,244 | $ 334 | $ 4 | 4,330 | 14,813 | (1,807) | 570 | |||
Preferred Shares Outstanding, beginning of period at Dec. 31, 2020 | 13,800 | |||||||||
Preferred Shares Outstanding | ||||||||||
Issuance of preferred shares | 0 | |||||||||
Preferred Shares Outstanding, end of period at Jun. 30, 2021 | 13,800 | |||||||||
Common Shares Outstanding, beginning of period (in thousands) at Dec. 31, 2020 | 358,489 | |||||||||
Shares Granted or Issued, Share-based Payment Arrangement [Abstract] | ||||||||||
Treasury stock acquired | (11,000) | (11,036) | ||||||||
Issuance of shares under incentive and stock compensation plans | 2,057 | |||||||||
Return of shares under incentive and stock compensation plans to treasury stock | (512) | |||||||||
Common Shares Outstanding, at end of period at Jun. 30, 2021 | 348,998 | |||||||||
Shares Granted or Issued, Share-based Payment Arrangement [Abstract] | ||||||||||
Cash dividends declared per common share | $ 0.700 | |||||||||
Cash dividends declared per preferred share | $ 750 | |||||||||
Beginning balance at Mar. 31, 2021 | 4,310 | 14,036 | (1,246) | 264 | $ 0 | $ 14,036 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Issuance of shares under incentive and stock compensation plans | (2) | |||||||||
Stock-based compensation plans expense | 22 | |||||||||
Net income | $ 905 | 905 | ||||||||
Dividends declared on preferred stock | (5) | (5) | ||||||||
Dividends declared on common stock | (123) | |||||||||
Treasury stock acquired | (568) | |||||||||
Issuance of shares under incentive and stock compensation plans | $ 8 | |||||||||
Net shares acquired related to employee incentive and stock compensation plans | (1) | |||||||||
Total other comprehensive income | 306 | |||||||||
Ending balance at Jun. 30, 2021 | $ 18,244 | $ 334 | $ 4 | $ 4,330 | $ 14,813 | $ (1,807) | $ 570 | |||
Preferred Shares Outstanding, beginning of period at Mar. 31, 2021 | 13,800 | |||||||||
Preferred Shares Outstanding | ||||||||||
Issuance of preferred shares | 0 | |||||||||
Preferred Shares Outstanding, end of period at Jun. 30, 2021 | 13,800 | |||||||||
Common Shares Outstanding, beginning of period (in thousands) at Mar. 31, 2021 | 357,517 | |||||||||
Shares Granted or Issued, Share-based Payment Arrangement [Abstract] | ||||||||||
Treasury stock acquired | (8,650) | |||||||||
Issuance of shares under incentive and stock compensation plans | 143 | |||||||||
Return of shares under incentive and stock compensation plans to treasury stock | (12) | |||||||||
Common Shares Outstanding, at end of period at Jun. 30, 2021 | 348,998 | |||||||||
Shares Granted or Issued, Share-based Payment Arrangement [Abstract] | ||||||||||
Cash dividends declared per common share | $ 0.350 | |||||||||
Cash dividends declared per preferred share | $ 375 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Operating Activities | ||
Net income | $ 1,154 | $ 741 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ||
Net realized capital losses (gains) | (227) | 122 |
Additional Cash Flow Elements and Supplemental Cash Flow Information [Abstract] | ||
Amortization of deferred policy acquisition costs | 833 | 866 |
Additions to deferred policy acquisition costs | (885) | (856) |
Depreciation and amortization | 347 | 269 |
Other operating activities, net | (88) | 95 |
Increase in reinsurance recoverables | (220) | (123) |
Net change in accrued and deferred income taxes | (24) | 175 |
Increase in insurance liabilities | 1,330 | 597 |
Net change in other assets and other liabilities | (623) | (619) |
Net cash provided by operating activities | 1,597 | 1,267 |
Proceeds from the sale/maturity/prepayment of: | ||
Fixed maturities, available-for-sale | 11,370 | 9,023 |
Equity securities, at fair value | 317 | 1,353 |
Mortgage loans | 858 | 536 |
Partnerships | 340 | 43 |
Payments for the purchase of: | ||
Fixed maturities, available-for-sale | (10,716) | (8,362) |
Equity securities, at fair value | (922) | (671) |
Mortgage loans | (1,229) | (762) |
Partnerships | (441) | (187) |
Payments for (Proceeds from) Derivative Instrument, Investing Activities | 5 | (139) |
Net additions of property and equipment | (47) | (51) |
Net payments for short-term investments | (102) | (883) |
Other investing activities, net | (2) | 37 |
Net cash provided by (used for) investing activities | (579) | 215 |
Financing Activities | ||
Deposits and other additions to investment and universal life-type contracts | 42 | 29 |
Withdrawals and other deductions from investment and universal life-type contracts | (37) | (26) |
Net decrease in securities loaned or sold under agreements to repurchase | 0 | (418) |
Repayment of debt | 0 | (500) |
Net return of shares under incentive and stock compensation plans | 28 | |
Treasury stock acquired | (691) | (150) |
Dividends paid on preferred stock | (10) | (10) |
Dividends paid on common stock | (242) | (224) |
Net cash used for financing activities | (933) | (1,327) |
Effect of Exchange Rate on Cash and Cash Equivalents | 1 | (45) |
Cash and Cash Equivalents, Including Cash Held-for-sale, Period Increase (Decrease) | 86 | 110 |
Cash and Cash Equivalents, Held-for-sale, Period Increase (Decrease) | 17 | 0 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect, Total | 69 | 110 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 239 | 262 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 308 | 372 |
Supplemental Disclosure of Cash Flow Information | ||
Income tax paid | 233 | 3 |
Interest paid | 107 | $ 124 |
Excess Tax Benefit from Share-based Compensation, Financing Activities | $ 5 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets Parentheticals - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale, Amortized Cost | $ 41,220 | $ 41,561 |
Fixed maturities, available-for-sale, at fair value (amortized cost of $41,220 and $41,561, and ACL of $4 and $23) | 4 | 23 |
ACL | (134) | (152) |
Reinsurance recoverables (net of allowance for uncollectible reinsurance of $99 and $108) | $ (43) | $ (55) |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Preferred Stock, Shares Issued | 13,800,000 | 13,800,000 |
Preferred Stock, Liquidation Preference, Value | $ 345 | $ 345 |
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 | 35,925,386 | 26,434,682 |
Uncollectible reinsurance | ||
Reinsurance recoverables (net of allowance for uncollectible reinsurance of $99 and $108) | $ (99) | $ (108) |
Commercial Loan [Member] | ||
Financing Receivable, Allowance for Credit Loss | $ 24 | $ 38 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Accounting Policies | 1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION 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 in the United States as well as in the United Kingdom, continental Europe and other international locations (collectively, “The Hartford”, the “Company”, “we” or “our”). On September 30, 2020, the Company entered into a definitive agreement to sell all of the issued and outstanding equity of Navigators Holdings (Europe) N.V., a Belgium holding company, and its subsidiaries, Bracht, Deckers & Mackelbert N.V. (“BDM”) and Assurances Contintales Contintale Verzekeringen N.V. (“ASCO”), (collectively referred to as "Continental Europe Operations"). For further discussion of this transaction see Note 16 - Business Disposition . The Condens ed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, which differ materially from the accounting practices prescribed by various insurance regulatory authorities. These Condensed Consolidated Financial Statements and Notes should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company's 2020 Form 10-K Annual Report. The results of operations for interim periods are not necessarily indicative of the results that may be expected for the full year. The accompanying Condensed Consolidated Financial Statements and Notes are unaudited. These financial statements reflect all adjustments (generally consisting only of normal accruals) which are, in the opinion of management, necessary for the fair statement of the financial position, results of operations and cash flows for the interim periods. The Company's significant accounting policies are summarized in Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements included in the Company's 2020 Form 10-K Annual Report. CONSOLIDATION The Condensed 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. Intercompany transactions and balances between The Hartford and its subsidiaries and affiliates have been eliminated. 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; and contingencies relating to corporate litigation and regulatory matters. RECLASSIFICATIONS |
Business Dispositions (Notes)
Business Dispositions (Notes) | 6 Months Ended |
Jun. 30, 2021 | |
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract] | |
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | 16. BUSINESS DISPOSITION Sale of Continental Europe Operations On September 30, 2020, the Company entered into a definitive agreement to sell its Continental Europe Operations consisting of multiple arrangements designed as a single transaction. The Continental Europe Operations are included in the Commercial Lines reporting segment. Revenues and earnings are not material to the Company's consolidated results of operations for the three and six months ended June 30, 2021 and 2020. The pending sale resulted in an estimated loss on the sale of approximately $66, before tax, including $18, before tax, in the six months ended June 30, 2021, which was recorded within net realized capital gains (losses). The accrual for the estimated before tax loss is included as a reduction of the carrying value of assets held for sale in the Company's Condensed Consolidated Balance Sheets as of June 30, 2021. The transaction is expected to close in the second half of 2021, subject to customary closing conditions, including regulatory approvals. Carrying Value of Assets and Liabilities to be Transferred in Connection With the Sale [1] As of June 30, 2021 As of December 31, 2020 Assets Investments and cash $ 156 $ 142 Reinsurance recoverables and other 24 35 Total assets held for sale 180 177 Liabilities Unpaid losses and loss adjustment expenses 76 84 Unearned premiums 22 31 Other liabilities 66 43 Total liabilities held for sale $ 164 $ 158 [1] As of June 30, 2021 and December 31, 2020, the estimated fair value of the disposal group was $12 and $14, respectively, based on the estimated consideration to be received less cost to sell. Within the disposal group, as of June 30, 2021 and December 31, 2020, investments in fixed maturities and short-term investments, which are measured at fair value on a recurring basis, had a fair value of $81 and $84, respectively, of which $0 and $1, respectively, was based on quoted prices in active markets for identical assets and $81 and $83, respectively, was based on significant observable inputs.The remaining fair value less costs to sell for the disposal group as of June 30, 2021 and December 31, 2020 was ($69) and ($70), respectively, which is measured on a nonrecurring basis using significant unobservable inputs. See Note 4—Fair Value Measurements for more information. |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | 2. EARNINGS PER COMMON SHARE Computation of Basic and Diluted Earnings per Common Share Three Months Ended June 30, Six Months Ended June 30, (In millions, except for per share data) 2021 2020 2021 2020 Earnings Net income $ 905 $ 468 $ 1,154 $ 741 Less: Preferred stock dividends 5 5 10 10 Net income available to common stockholders $ 900 $ 463 $ 1,144 $ 731 Shares Weighted average common shares outstanding, basic 353.7 358.1 356.0 358.3 Dilutive effect of stock-based awards under compensation plans 4.8 1.2 4.4 1.9 Weighted average common shares outstanding and dilutive potential common shares 358.5 359.3 360.4 360.2 Net income available to common stockholders per common share Basic $ 2.54 $ 1.29 $ 3.21 $ 2.04 Diluted $ 2.51 $ 1.29 $ 3.17 $ 2.03 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | 3. SEGMENT INFORMATION The Company currently 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. Net Income (Loss) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Commercial Lines $ 569 $ (66) $ 698 $ 55 Personal Lines 118 371 253 469 Property & Casualty Other Operations 17 5 4 10 Group Benefits 170 101 179 205 Hartford Funds 52 39 99 75 Corporate (21) 18 (79) (73) Net income 905 468 1,154 741 Preferred stock dividends 5 5 10 10 Net income available to common stockholders $ 900 $ 463 $ 1,144 $ 731 Revenues Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Earned premiums and fee income: Commercial Lines Workers’ compensation $ 768 $ 720 $ 1,506 $ 1,536 Liability 402 337 777 680 Marine 57 67 115 132 Package business 409 383 802 760 Property 205 185 405 390 Professional liability 158 149 313 292 Bond 71 68 140 138 Assumed reinsurance 84 72 152 138 Automobile 198 181 386 369 Total Commercial Lines 2,352 2,162 4,596 4,435 Personal Lines Automobile 515 462 1,027 1,005 Homeowners 231 241 461 481 Total Personal Lines [1] 746 703 1,488 1,486 Group Benefits Group disability 744 719 1,483 1,445 Group life 604 632 1,206 1,239 Other 79 72 156 130 Total Group Benefits 1,427 1,423 2,845 2,814 Hartford Funds Mutual fund and Exchange-Traded Products ("ETP") 272 207 531 432 Talcott Resolution life and annuity separate accounts [2] 24 20 47 42 Total Hartford Funds 296 227 578 474 Corporate 14 17 26 34 Total earned premiums and fee income 4,835 4,532 9,533 9,243 Net investment income 581 339 1,090 798 Net realized capital gains (losses) 147 109 227 (122) Other revenues 26 88 38 105 Total revenues $ 5,589 $ 5,068 $ 10,888 $ 10,024 [1] For the three months ended June 30, 2021 and 2020, AARP members accounted for earned premiums of $682 and $633, respectively. For the six months ended June 30, 2021 and 2020, AARP members accounted for earned premiums of $1.36 billion and $1.34 billion, respectively. [2] Represents revenues earned for investment advisory services on the life and annuity separate account AUM sold in May 2018 that is still managed by the Company's Hartford Funds segment. Revenue from Non-Insurance Contracts with Customers Three Months Ended June 30, Six Months Ended June 30, Revenue Line Item 2021 2020 2021 2020 Commercial Lines Installment billing fees Fee income $ 8 $ 5 $ 17 $ 13 Personal Lines Installment billing fees Fee income 8 9 16 18 Insurance servicing revenues Other revenues 21 21 40 40 Group Benefits Administrative services Fee income 49 45 93 88 Hartford Funds Advisor, distribution and other management fees Fee income 270 207 527 431 Other fees Fee income 26 20 51 43 Corporate Investment management and other fees Fee income 14 12 26 25 Transition service revenues Other revenues — — — 2 Total non-insurance revenues with customers $ 396 $ 319 $ 770 $ 660 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. 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 June 30, 2021 Total Quoted Prices in Significant Significant Assets accounted for at fair value on a recurring basis Fixed maturities, AFS Asset backed securities ("ABS") $ 1,321 $ — $ 1,307 $ 14 Collateralized loan obligations ("CLOs") 3,100 — 2,725 375 Commercial mortgage-backed securities ("CMBS") 4,095 — 4,009 86 Corporate 19,161 — 18,020 1,141 Foreign government/government agencies 873 — 873 — Municipal 9,161 — 9,161 — Residential mortgage-backed securities ("RMBS") 3,520 — 3,218 302 U.S. Treasuries 2,792 250 2,542 — Total fixed maturities 44,023 250 41,855 1,918 Equity securities, at fair value 1,693 1,061 558 74 Derivative assets Credit derivatives 13 — 13 — Interest rate derivatives 1 — 1 — Total derivative assets [1] 14 — 14 — Short-term investments 3,398 2,204 1,176 18 Total assets accounted for at fair value on a recurring basis $ 49,128 $ 3,515 $ 43,603 $ 2,010 Liabilities accounted for at fair value on a recurring basis Derivative liabilities Credit derivatives $ (2) $ — $ (2) $ — Foreign exchange derivatives (4) — (4) — Interest rate derivatives (53) — (53) — Total derivative liabilities [2] (59) — (59) — Total liabilities accounted for at fair value on a recurring basis $ (59) $ — $ (59) $ — Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of December 31, 2020 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 $ 1,564 $ — $ 1,564 $ — CLOs 2,780 — 2,420 360 CMBS 4,484 — 4,407 77 Corporate 20,273 — 19,392 881 Foreign government/government agencies 919 — 913 6 Municipal 9,503 — 9,503 — RMBS 4,107 — 3,726 381 U.S. Treasuries 1,405 529 876 — Total fixed maturities 45,035 529 42,801 1,705 Equity securities, at fair value 1,438 872 496 70 Derivative assets Credit derivatives 21 — 21 — Foreign exchange derivatives 1 — 1 — Interest rate derivatives 1 — 1 — Total derivative assets [1] 23 — 23 — Short-term investments 3,283 2,663 590 30 Total assets accounted for at fair value on a recurring basis $ 49,779 $ 4,064 $ 43,910 $ 1,805 Liabilities accounted for at fair value on a recurring basis Derivative liabilities Foreign exchange derivatives (14) — (14) — Interest rate derivatives (70) — (70) — Total derivative liabilities [2] (84) — (84) — Total liabilities accounted for at fair value on a recurring basis $ (84) $ — $ (84) $ — [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. The Company has overseas deposits in Other Investments of $57 and $54 as of June 30, 2021 and December 31, 2020, respectively, which are measured at fair value using the net asset value as a practical expedient. 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, 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 significant 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 over-the-counter ("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 Other inputs for ABS, CLOs and RMBS: • 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 Other inputs for below investment grade privately placed securities and private bank loans: U.S. Treasuries, Municipals, and Foreign government/government agencies • Benchmark yields and spreads • 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 Foreign exchange derivatives • Swap yield curve • Currency spot and forward rates • Cross currency basis curves Not applicable Interest rate derivatives • Swap yield curve Not applicable Significant Unobservable Inputs for Level 3 - Securities Assets accounted for at fair value on a recurring basis Fair Predominant Significant Unobservable Input Minimum Maximum Weighted Average [1] Impact of As of June 30, 2021 CLOs [3] $ 266 Discounted cash flows Spread 229 bps 328 bps 312 bps Decrease CMBS [3] $ 66 Discounted cash flows Spread (encompasses prepayment, default risk and loss severity) 195 bps 645 bps 326 bps Decrease Corporate [4] $ 1,051 Discounted cash flows Spread 88 bps 965 bps 275 bps Decrease RMBS [3] $ 285 Discounted cash flows Spread [6] 38 bps 259 bps 94 bps Decrease Constant prepayment rate [6] —% 12% 6% Decrease [5] Constant default rate [6] 1% 6% 3% Decrease Loss severity [6] —% 100% 70% Decrease As of December 31, 2020 CLOs [3] $ 340 Discounted cash flows Spread 304 bps 305 bps 304 bps Decrease CMBS [3] $ 20 Discounted cash flows Spread (encompasses prepayment, default risk and loss severity) 255 bps 975 bps 688 bps Decrease Corporate [4] $ 749 Discounted cash flows Spread 110 bps 692 bps 293 bps Decrease RMBS [3] $ 364 Discounted cash flows Spread [6] 7 bps 937 bps 119 bps Decrease Constant prepayment rate [6] —% 10% 5% Decrease [5] Constant default rate [6] 2% 6% 3% Decrease Loss severity [6] —% 100% 84% 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. As of June 30, 2021 and December 31, 2020, the fair values of the Company's level 3 derivatives were less than $1 for both periods. The table above excludes 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. As of June 30, 2021, no significant adjustments were made by the Company to broker prices received. 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 within 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 Total realized/unrealized gains (losses) Fair value as of March 31, 2021 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 June 30, 2021 Assets Fixed Maturities, AFS ABS $ 6 $ — $ — $ 13 $ — $ — $ — $ (5) $ 14 CLOs 426 — — 119 (30) — — (140) 375 CMBS 61 — 2 38 (1) — 5 (19) 86 Corporate 944 1 2 176 (69) (37) 124 — 1,141 RMBS 481 — (1) 29 (57) (10) — (140) 302 Total Fixed Maturities, AFS 1,918 1 3 375 (157) (47) 129 (304) 1,918 Equity Securities, at fair value 70 2 — 3 (1) — — — 74 Short-term investments 16 — — 2 — — — — 18 Total Assets $ 2,004 $ 3 $ 3 $ 380 $ (158) $ (47) $ 129 $ (304) $ 2,010 Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Total realized/unrealized gains (losses) Fair value as of January 1, 2021 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 June 30, 2021 Assets Fixed Maturities, AFS ABS $ — $ — $ — $ 19 $ — $ — $ — $ (5) $ 14 CLOs 360 — — 259 (45) — — (199) 375 CMBS 77 — 2 39 (3) — 5 (34) 86 Corporate 881 6 (11) 249 (76) (44) 172 (36) 1,141 Foreign Govt./Govt. Agencies 6 — — — — (6) — — — RMBS 381 — (2) 180 (103) (14) — (140) 302 Total Fixed Maturities, AFS 1,705 6 (11) 746 (227) (64) 177 (414) 1,918 Equity Securities, at fair value 70 2 — 3 (1) — — — 74 Short-term investments 30 — — 2 (14) — — — 18 Total Assets $ 1,805 $ 8 $ (11) $ 751 $ (242) $ (64) $ 177 $ (414) $ 2,010 70 Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Total realized/unrealized gains (losses) Fair value as of March 31, 2020 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 June 30, 2020 Assets Fixed Maturities, AFS ABS $ 19 $ — $ — $ 23 $ — $ — $ — $ (19) $ 23 CLOs 83 — 4 19 (7) — — — 99 CMBS 18 — — 3 (1) — — — 20 Corporate 709 (22) 61 22 (28) (19) 412 (26) 1,109 Foreign Govt./Govt. Agencies 3 — — — — — — (3) — RMBS 487 — 13 21 (42) — — — 479 Total Fixed Maturities, AFS 1,319 (22) 78 88 (78) (19) 412 (48) 1,730 Equity Securities, at fair value 69 (3) — — — — — — 66 Short-term investments 14 — — — — — — — 14 Total Assets $ 1,402 $ (25) $ 78 $ 88 $ (78) $ (19) $ 412 $ (48) $ 1,810 Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Total realized/unrealized gains (losses) Fair value as of January 1, 2020 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 June 30, 2020 Assets Fixed Maturities, AFS ABS $ 15 $ — $ (1) $ 43 $ — $ — $ — $ (34) $ 23 CLOs 95 — (2) 19 (13) — — — 99 CMBS 9 — — 13 (2) — — — 20 Corporate 732 (32) (19) 116 (64) (27) 459 (56) 1,109 Foreign Govt./Govt. Agencies 3 — — — — — — (3) — RMBS 560 — (12) 26 (88) (7) — — 479 Total Fixed Maturities, AFS 1,414 (32) (34) 217 (167) (34) 459 (93) 1,730 Equity Securities, at fair value 73 (10) — 3 — — — — 66 Short-term investments 15 — — — (1) — — — 14 Total Assets $ 1,502 $ (42) $ (34) $ 220 $ (168) $ (34) $ 459 $ (93) $ 1,810 Liabilities Contingent Consideration $ (22) $ 12 $ — $ — $ 10 $ — $ — $ — $ — Derivatives, net [4] Equity (15) 36 — — (21) — — — — Total Derivatives, net [4] (15) 36 — — (21) — — — — Total Liabilities $ (37) $ 48 $ — $ — $ (11) $ — $ — $ — $ — [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 Condensed Consolidated Balance Sheets in other investments and other liabilities. Changes in Unrealized Gains (Losses) for Financial Instruments Classified as Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 2021 2020 2021 2020 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 CLOs $ — $ — $ — $ 4 $ — $ — $ — $ (2) CMBS — — 2 — — — 2 — Corporate — — 2 61 — — (8) (12) RMBS — — (1) 13 — — (2) (11) Total Fixed Maturities, AFS — — 3 78 — — (8) (25) Equity Securities, at fair value 2 (3) — — 2 (9) — — Total Assets $ 2 $ (3) $ 3 $ 78 $ 2 $ (9) $ (8) $ (25) Liabilities Contingent Consideration $ — $ — $ — $ — $ — $ 12 $ — $ — Total Liabilities $ — $ — $ — $ — $ — $ 12 $ — $ — [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 Condensed Consolidated Statements of Comprehensive Income. FINANCIAL INSTRUMENTS NOT CARRIED AT FAIR VALUE Financial Assets and Liabilities Not Carried at Fair Value June 30, 2021 December 31, 2020 Fair Value Hierarchy Level Carrying Amount [1] Fair Value Fair Value Hierarchy Level Carrying Amount [1] Fair Value Assets Mortgage loans Level 3 $ 4,876 $ 5,110 Level 3 $ 4,493 $ 4,792 Liabilities Other policyholder funds and benefits payable Level 3 $ 685 $ 687 Level 3 $ 701 $ 703 Senior notes [2] Level 2 $ 3,264 $ 4,153 Level 2 $ 3,262 $ 4,363 Junior subordinated debentures [2] Level 2 $ 1,090 $ 1,121 Level 2 $ 1,090 $ 1,107 [1] As of June 30, 2021 and December 31, 2020, carrying amount of mortgage loans is net of ACL of $24 and $38, respectively. [2] Included in long-term debt in the Condensed Consolidated Balance Sheets, except for current maturities, which are included in short-term debt. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2021 | |
Investments [Abstract] | |
Investments | 5. INVESTMENTS Net Realized Capital Gains (Losses) Three Months Ended June 30, Six Months Ended June 30, (Before tax) 2021 2020 2021 2020 Gross gains on sales $ 68 $ 96 $ 99 $ 174 Gross losses on sales (15) (22) (46) (30) Equity securities [1] 88 75 131 (311) Net credit losses on fixed maturities, AFS — (20) 4 (32) Change in ACL on mortgage loans 10 (22) 14 (24) Intent-to-sell impairments — — — (5) Other, net [2] (4) 2 25 106 Net realized capital gains (losses) $ 147 $ 109 $ 227 $ (122) [1] The net unrealized gains on equity securities included in net realized capital gains (losses) related to equity securities still held as of June 30, 2021, were $80 and $118 for the three and six months ended June 30, 2021 respectively. The net unrealized gains (losses) on equity securities included in net realized capital gains (losses) related to equity securities still held as of June 30, 2020, were $67 and $(34) for the three and six months ended June 30, 2020 respectively. [2] For the three and six months ended June 30, 2021 includes gains (losses) from transactional foreign currency revaluation of $0 and $(7) and gains (losses) on non-qualifying derivatives of $(29) and $6, respectively. For the same periods, also includes a gain of $46 on the sale of Talcott Resolution, and, an additional gain (loss) of $(19) and $(18), respectively, on the pending sale of Continental Europe Operations. For the three and six months ended June 30, 2020, includes gains (losses) from transactional foreign currency revaluation of $0 and $10, respectively. For the same periods, also includes gains (losses) on non-qualifying derivatives of $7 and $99, respectively. Proceeds from the sales of fixed maturities, AFS totaled $4.0 billion and $8.2 billion for the three and six months ended June 30, 2021 respectively, and $4.1 billion and $7.2 billion for the three and six months ended June 30, 2020 , respectively. Accrued Interest Receivable on Fixed Maturities, AFS and Mortgage Loans As of June 30, 2021 and December 31, 2020, the Company reported accrued interest receivable related to fixed maturities, AFS of $323 and $327, respectively, and accrued interest receivable related to mortgage loans of $15 and $14, respectively. These amounts are recorded in other assets on the Condensed Consolidated Balance Sheets and are not included in the carrying value of the fixed maturities or mortgage loans. The Company does not include the current accrued interest receivable balance when estimating the ACL. The Company has a policy to write-off accrued interest receivable balances that are more than 90 days past due. Write-offs of accrued interest receivable are recorded as a credit loss component of net realized capital gains and losses. Interest income on fixed maturities and mortgage loans is accrued unless it is past due over 90 days or management deems the interest uncollectible. Recognition and Presentation of Intent-to-Sell Impairments and ACL on Fixed Maturities, AFS The Company will record an "intent-to-sell impairment" as a reduction to the amortized cost of fixed maturities, AFS in an unrealized loss position if the Company intends to sell or it is more likely than not that the Company will be required to sell the fixed maturity before a recovery in value. A corresponding charge is recorded in net realized capital losses equal to the difference between the fair value on the impairment date and the amortized cost basis of the fixed maturity before recognizing the impairment. When fixed maturities are in an unrealized loss position and the Company does not record an intent-to-sell impairment, the Company will record an ACL for the portion of the unrealized loss due to a credit loss. Any remaining unrealized loss on a fixed maturity after recording an ACL is the non-credit amount and is recorded in OCI. The ACL is the excess of the amortized cost over the greater of the Company's best estimate of the present value of expected future cash flows or the security's fair value. Cash flows are discounted at the effective yield that is used to record interest income. The ACL cannot exceed the unrealized loss and, therefore, it may fluctuate with changes in the fair value of the fixed maturity if the fair value is greater than the Company's best estimate of the present value of expected future cash flows. The initial ACL and any subsequent changes are recorded in net realized capital gains and losses. The ACL is written off against the amortized cost in the period in which all or a portion of the related fixed maturity is determined to be uncollectible. 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/or 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, instrument-specific developments including changes in credit ratings, industry earnings multiples and the issuer’s ability to restructure, access capital markets, 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 ratios ("LTVs"), 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. ACL on Fixed Maturities, AFS by Type Three Months Ended June 30, 2021 Three Months Ended June 30, 2020 Six Months Ended June 30, 2021 Six Months Ended June 30, 2020 (Before tax) Corporate Total Corporate Total Corporate Total Corporate Total Balance as of beginning of period $ 19 $ 19 $ 12 $ 12 $ 23 $ 23 $ — $ — Credit losses on fixed maturities where an allowance was not previously recorded — — 23 23 2 2 35 35 Reduction due to sales (15) (15) (2) (2) (15) (15) (2) (2) Net increases (decreases) on fixed maturities where an allowance was previously recorded — — (1) (1) (6) (6) (1) (1) Balance as of end of period $ 4 $ 4 $ 32 $ 32 $ 4 $ 4 $ 32 $ 32 Fixed Maturities, AFS, by Type June 30, 2021 December 31, 2020 Amortized Cost ACL Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost ACL Gross Unrealized Gains Gross Unrealized Losses Fair Value ABS $ 1,295 $ — $ 26 $ — $ 1,321 $ 1,525 $ — $ 39 $ — $ 1,564 CLOs 3,092 — 9 (1) 3,100 2,780 — 7 (7) 2,780 CMBS 3,853 — 250 (8) 4,095 4,219 — 286 (21) 4,484 Corporate 17,740 (4) 1,457 (32) 19,161 18,401 (23) 1,926 (31) 20,273 Foreign govt./govt. agencies 824 — 52 (3) 873 842 — 77 — 919 Municipal 8,281 — 882 (2) 9,161 8,564 — 940 (1) 9,503 RMBS 3,436 — 92 (8) 3,520 3,966 — 144 (3) 4,107 U.S. Treasuries 2,699 — 96 (3) 2,792 1,264 — 141 — 1,405 Total fixed maturities, AFS $ 41,220 $ (4) $ 2,864 $ (57) $ 44,023 $ 41,561 $ (23) $ 3,560 $ (63) $ 45,035 Fixed Maturities, AFS, by Contractual Maturity Year June 30, 2021 December 31, 2020 Amortized Cost Fair Value Amortized Cost Fair Value One year or less $ 1,224 $ 1,241 $ 1,411 $ 1,432 Over one year through five years 7,949 8,376 7,832 8,286 Over five years through ten years 8,817 9,323 7,622 8,354 Over ten years 11,554 13,047 12,206 14,028 Subtotal 29,544 31,987 29,071 32,100 Mortgage-backed and asset-backed securities 11,676 12,036 12,490 12,935 Total fixed maturities, AFS $ 41,220 $ 44,023 $ 41,561 $ 45,035 Estimated maturities may differ from contractual maturities due to 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 as of June 30, 2021 or December 31, 2020 other than U.S. government securities and certain U.S. government agencies. Unrealized Losses on Fixed Maturities, AFS Unrealized Loss Aging for Fixed Maturities, AFS by Type and Length of Time as of June 30, 2021 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses ABS $ 137 $ — $ — $ — $ 137 $ — CLOs 703 (1) 251 — 954 (1) CMBS 130 (1) 91 (7) 221 (8) Corporate 1,436 (23) 207 (9) 1,643 (32) Foreign govt./govt. agencies 153 (3) — — 153 (3) Municipal 263 (2) — — 263 (2) RMBS 725 (8) 6 — 731 (8) U.S. Treasuries 377 (3) — — 377 (3) Total fixed maturities, AFS in an unrealized loss position $ 3,924 $ (41) $ 555 $ (16) $ 4,479 $ (57) Unrealized Loss Aging for Fixed Maturities, AFS by Type and Length of Time as of December 31, 2020 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses ABS $ 44 $ — $ — $ — $ 44 $ — CLOs 758 (2) 715 (5) 1,473 (7) CMBS 410 (17) 19 (4) 429 (21) Corporate 466 (13) 212 (18) 678 (31) Foreign govt./govt. agencies 24 — — — 24 — Municipal 34 (1) — — 34 (1) RMBS 461 (3) 21 — 482 (3) U.S. Treasuries 39 — — — 39 — Total fixed maturities, AFS in an unrealized loss position $ 2,236 $ (36) $ 967 $ (27) $ 3,203 $ (63) As of June 30, 2021, fixed maturities, AFS in an unrealized loss position consisted of 787 instruments, primarily in the corporate sectors, most notably financial services, technology and communications, capital goods, and utilities, as well as CMBS and RMBS which were depressed largely due to higher interest rates and/or wider credit spreads since the purchase date. As of June 30, 2021, 96% of these fixed maturities were depressed less than 20% of cost or amortized cost. The unrealized losses remained relatively flat compared to December 31, 2020. Most of the fixed maturities depressed for twelve months or more relate to the corporate and CMBS sectors which were primarily depressed because current market spreads are wider than at the respective purchase dates. Additionally, certain corporate fixed maturities were also depressed because of their variable-rate coupons and long-dated maturities. The Company neither has an intention to sell nor does it expect to be required to sell the fixed maturities outlined in the preceding discussion. The decision to record credit losses on fixed maturities, AFS in the form of an ACL requires us to make qualitative and quantitative estimates of expected future cash flows. Given the uncertainty about the ultimate impact of the COVID-19 pandemic on issuers of these securities, actual cash flows could ultimately deviate significantly from our expectations resulting in realized losses in future periods. MORTGAGE LOANS ACL on Mortgage Loans The Company reviews mortgage loans on a quarterly basis to estimate the ACL with changes in the ACL recorded in net realized capital gains and losses. Apart from an ACL recorded on individual mortgage loans where the borrower is experiencing financial difficulties, the Company records an ACL on the pool of mortgage loans based on lifetime expected credit losses. The Company utilizes a third-party forecasting model to estimate lifetime expected credit losses at a loan level under multiple economic scenarios. The scenarios use macroeconomic data provided by an internationally recognized economics firm that generates forecasts of varying economic factors such as GDP growth, unemployment and interest rates. The economic scenarios are projected over 10 years. The first two to four years of the 10-year period assume a specific modeled economic scenario (including moderate upside, moderate recession and severe recession scenarios) and then revert to historical long-term assumptions over the remaining period. Using these economic scenarios, the forecasting model projects property-specific operating income and capitalization rates used to estimate the value of a future operating income stream. The operating income and the property valuations derived from capitalization rates are compared to loan payment and principal amounts to create debt service coverage ratios ("DSCRs") and loan-to-value ratios ("LTVs") over the forecast period. The model overlays historical data about mortgage loan performance based on DSCRs and LTVs and projects the probability of default, amount of loss given a default and resulting expected loss through maturity for each loan under each economic scenario. Economic scenarios are probability-weighted based on a statistical analysis of the forecasted economic factors and qualitative analysis. The Company records the change in the ACL on mortgage loans based on the weighted-average expected credit losses across the selected economic scenarios. When a borrower is experiencing financial difficulty, including when foreclosure is probable, the Company measures an ACL on individual mortgage loans. The ACL is established for any shortfall between the amortized cost of the loan and the fair value of the collateral less costs to sell. Estimates of collectibility from an individual borrower 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. As of June 30, 2021, the Company did not have any mortgage loans for which an ACL was established on an individual basis. There were no mortgage loans held-for-sale as of June 30, 2021 or December 31, 2020. For the three and six months ended June 30, 2021 and 2020, respectively, the Company had no mortgage loans that have had extensions or restructurings other than what is allowable under the original terms of the contract. ACL on Mortgage Loans Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 ACL as of beginning of period $ 34 $ 21 $ 38 $ — Cumulative effect of accounting changes [1] 19 Adjusted beginning ACL 34 21 38 19 Current period provision (release) (10) 22 (14) 24 ACL as of June 30, $ 24 $ 43 $ 24 $ 43 [1] Represents the adjustment to the ACL recorded on adoption of accounting guidance for credit losses on January 1, 2020. For further information, see the Financial Instruments - Credit Losses section within Note 1 - Basis of Presentation and Significant Accounting Policies, included in The Hartford's 2020 Form 10-K Annual Report. During 2020, the Company increased the estimate of the ACL in response to significant economic stress experienced as a result of the COVID-19 pandemic. The decrease in the allowance for the three and six months ended June 30, 2021, is the result of improved economic scenarios, including improved GDP growth and unemployment, and higher property valuations as compared to the prior periods. We continue to monitor the impact on our mortgage loan portfolio from borrower behavior in response to the economic stress. Borrowers with lower LTVs have an incentive to continue to make payments of principal and/or interest in order to preserve the equity they have in the underlying commercial real estate properties. The weighted-average LTV ratio of the Company’s mortgage loan portfolio was 54% as of June 30, 2021, while the weighted-average LTV ratio at origination of these loans was 60%. LTV ratios compare the loan amount to the value of the underlying property collateralizing the loan with property values based on appraisals updated no less than annually. 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 and are updated no less than annually through reviews of underlying properties. Mortgage Loans LTV & DSCR by Origination Year as of June 30, 2021 2021 2020 2019 2018 2017 2016 & Prior Total Loan-to-value Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost [1] Avg. DSCR 65% - 80% $ — —x $ 57 2.13x $ 187 1.61x $ 175 1.25x $ 45 1.75x $ 140 1.51x $ 604 1.54x Less than 65% 713 2.93x 642 2.69x 730 2.71x 428 2.22x 421 1.85x 1,362 2.51x 4,296 2.55x Total mortgage loans $ 713 2.93x $ 699 2.64x $ 917 2.49x $ 603 1.93x $ 466 1.84x $ 1,502 2.42x $ 4,900 2.42x [1] Amortized cost of mortgage loans excludes ACL of $24. Mortgage Loans LTV & DSCR by Origination Year as of December 31, 2020 2020 2019 2018 2017 2016 2015 & Prior Total Loan-to-value Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost [1] Avg. DSCR 65% - 80% $ 28 1.62x $ 243 1.58x $ 212 1.33x $ 45 2.02x $ 51 1.92x $ 115 1.74x $ 694 1.59x Less than 65% 659 2.56x 676 2.85x 410 2.25x 446 1.89x 235 2.99x 1,411 3.01x 3,837 2.69x Total mortgage loans $ 687 2.52x $ 919 2.51x $ 622 1.94x $ 491 1.90x $ 286 2.80x $ 1,526 2.92x $ 4,531 2.52x [1] Amortized cost of mortgage loans excludes ACL of $38. Mortgage Loans by Region June 30, 2021 December 31, 2020 Amortized Cost Percent of Total Amortized Cost Percent of Total East North Central $ 293 6.0 % $ 290 6.4 % Middle Atlantic 289 5.9 % 291 6.4 % Mountain 345 7.0 % 254 5.6 % New England 395 8.1 % 397 8.8 % Pacific 1,196 24.4 % 1,001 22.1 % South Atlantic 1,246 25.4 % 1,038 22.9 % West North Central 44 0.9 % 44 1.0 % West South Central 373 7.6 % 433 9.5 % Other [1] 719 14.7 % 783 17.3 % Total mortgage loans 4,900 100.0 % 4,531 100.0 % ACL (24) (38) Total mortgage loans, net of ACL $ 4,876 $ 4,493 [1] Primarily represents loans collateralized by multiple properties in various regions. Mortgage Loans by Property Type June 30, 2021 December 31, 2020 Amortized Cost Percent of Total Amortized Cost Percent of Total Commercial Industrial $ 1,622 33.1 % $ 1,339 29.5 % Multifamily 1,609 32.8 % 1,498 33.1 % Office 652 13.3 % 774 17.1 % Retail [1] 901 18.4 % 788 17.4 % Single Family 76 1.6 % 92 2.0 % Other 40 0.8 % 40 0.9 % Total mortgage loans 4,900 100.0 % 4,531 100.0 % ACL (24) (38) Total mortgage loans, net of ACL $ 4,876 $ 4,493 [1] Primarily comprised of grocery-anchored retail centers, with no exposure to regional shopping malls. Past-Due Mortgage Loans Mortgage loans are considered past due if a payment of principal or interest is not received according to the contractual terms of the loan agreement, which typically includes a grace period. As of June 30, 2021 and December 31, 2020, the Company held no mortgage loans considered past due. 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 June 30, 2021, under this program, the Company serviced mortgage loans with a total outstanding principal of $7.5 billion, of which $3.8 billion was serviced on behalf of third parties and $3.7 billion was retained and reported in total investments on the Company's Condensed Consolidated Balance Sheets. As of December 31, 2020, the Company serviced mortgage loans with a total outstanding principal balance of $6.9 billion, of which $3.7 billion was serviced on behalf of third parties and $3.2 billion was retained and reported in total investments on the Company's Condensed Consolidated Balance Sheets. Servicing rights are carried at the lower of cost or fair value and were $0 as of June 30, 2021 and December 31, 2020, 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 Condensed Consolidated Financial Statements. Consolidated VIEs As of June 30, 2021 and December 31, 2020, 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 June 30, 2021 and December 31, 2020 was limited to the total carrying value of $1.6 billion and $1.3 billion, respectively, which are included in limited partnerships and other alternative investments in the Company's Condensed Consolidated Balance Sheets. As of June 30, 2021 and December 31, 2020, the Company has outstanding commitments totaling $1.0 billion and $768, 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. For further discussion of these investments, see Equity Method Investments within Note 6 - Investments of Notes to Consolidated Financial Statements included in the Company’s 2020 Form 10-K Annual Report. 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. 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, REVERSE REPURCHASE AGREEMENTS, OTHER COLLATERAL TRANSACTIONS AND RESTRICTED INVESTMENTS 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 Condensed 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 Condensed Consolidated Balance Sheets. Income associated with securities lending transactions is reported as a component of net investment income in the Company’s Condensed Consolidated Statements of Operations. While the Company did have securities on loan as part of a securities lending program during 2020, as of June 30, 2021 and December 31, 2020, the Company did not have any securities on loan as part of a securities lending program. Reverse Repurchase Agreements 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 under specified conditions and the Company has the right to sell or re-pledge the securities received. The Company accounts for reverse repurchase agreements as collateralized financing. As of June 30, 2021 and December 31, 2020, the Company reported $18 and $30, respectively, within short-term investments on the Condensed Consolidated Balance Sheets representing a receivable for the amount of cash transferred to purchase the securities. Other Collateral Transactions As of June 30, 2021 and December 31, 2020, the Company pledged collateral of $9 and $34, respectively, of U.S. government securities or cash primarily related to certain bank loan participations committed to through a limited partnership agreement. 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 6 - Derivatives of Notes to Condensed 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 June 30, 2021 and December 31, 2020, the fair value of securities on deposit was $2.5 billion and $2.6 billion, respectively. In addition, as of June 30, 2021, the Company held fixed maturities and short-term investments of $685 and $2, respectively, in trust for the benefit of syndicate policyholders, held fixed maturities of $172 in a Lloyd's of London ("Lloyd's") trust account to provide a portion of the required capital, and Equity Method Investments On June 30, 2021, Hopmeadow Holdings LP, the legal entity that acquired Talcott Resolution in May 2018 (collectively referred to as "Talcott Resolution"), was sold and, as a result, the Company sold its retained 9.7% interest. The Company received a total $217 in connection with the sale of its 9.7% ownership interest, resulting in a realized gain on sale of $46 before tax for the three and six months ended June 30, 2021. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives Instruments | 6. 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 or income generation covered call transactions. Derivative instruments are used to manage risk associated with interest rate, equity market, credit spread, issuer default, price, and currency exchange rate 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, included in The Hartford’s 2020 Form 10-K Annual Report. 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. 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 variable-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 14 - Debt of Notes to the Consolidated Financial Statements, included in The Hartford's 2020 Form 10-K Annual Report. 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 hedges of interest rate, foreign currency and equity risk of certain fixed maturities and equities. In addition, hedging and replication strategies that utilize credit default swaps 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 or the Company should the referenced security issuers experience a credit event, as defined in the contract. The Company also 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 June 30, 2021 and December 31, 2020, the notional amount of interest rate swaps in offsetting relationships was $7.2 billion and $7.6 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. 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. 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 Jun. 30, 2021 Dec. 31, 2020 Jun. 30, 2021 Dec. 31, 2020 Jun. 30, 2021 Dec. 31, 2020 Jun. 30, 2021 Dec. 31, 2020 Cash flow hedges Interest rate swaps $ 2,340 $ 2,340 $ — $ — $ — $ — $ — $ — Foreign currency swaps 297 286 (4) (13) 5 3 (9) (16) Total cash flow hedges 2,637 2,626 (4) (13) 5 3 (9) (16) Non-qualifying strategies Interest rate contracts Interest rate swaps and futures 8,004 8,335 (52) (69) 5 4 (57) (73) Foreign exchange contracts Foreign currency swaps and forwards 280 269 — — — — — — Credit contracts Credit derivatives that purchase credit protection 6 6 — — — — — — Credit derivatives that assume credit risk [1] 225 675 11 21 11 21 — — Credit derivatives in offsetting positions 214 218 — — 4 5 (4) (5) Total non-qualifying strategies 8,729 9,503 (41) (48) 20 30 (61) (78) Total cash flow hedges and non-qualifying strategies $ 11,366 $ 12,129 $ (45) $ (61) $ 25 $ 33 $ (70) $ (94) Balance Sheet Location Fixed maturities, available-for-sale $ 280 $ 269 $ — $ — $ — $ — $ — $ — Other investments 1,386 9,585 14 23 17 25 (3) (2) Other liabilities 9,700 2,275 (59) (84) 8 8 (67) (92) Total derivatives $ 11,366 $ 12,129 $ (45) $ (61) $ 25 $ 33 $ (70) $ (94) [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 Condensed 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 June 30, 2021 Other investments $ 25 $ 24 $ 14 $ (13) $ 1 $ — Other liabilities $ (70) $ (9) $ (59) $ (2) $ (58) $ (3) As of December 31, 2020 Other investments $ 33 $ 31 $ 23 $ (21) $ 1 $ 1 Other liabilities $ (94) $ (6) $ (84) $ (4) $ (83) $ (5) [1] Included in other investments in the Company's Condensed Consolidated Balance Sheets. [2] Included in other liabilities in the Company's Condensed Consolidated Balance Sheets and is limited to the net derivative payable associated with each counterparty. [3] Included in other investments in the Company's Condensed 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 Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Interest rate swaps $ (4) $ 4 $ 6 $ 36 Foreign currency swaps 7 (4) 11 24 Total $ 3 $ — $ 17 $ 60 Gain (Loss) Reclassified from AOCI into Income Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net Investment Income Interest Expense Net Investment Income Interest Expense Net Investment Income Interest Expense Net Investment Income Interest Expense Interest rate swaps $ 10 $ (3) $ 7 $ (2) $ 20 $ (5) $ 10 $ (2) Foreign currency swaps 1 — 1 — 2 — 2 — Total $ 11 $ (3) $ 8 $ (2) $ 22 $ (5) $ 12 $ (2) Total amounts presented on the Condensed Consolidated Statement of Operations $ 581 $ 57 $ 339 $ 57 $ 1,090 $ 114 $ 798 $ 121 As of June 30, 2021, 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 $33. This expectation is based on the anticipated interest payments on hedged investments in fixed maturity securities and long-term debt that will occur over the next twelve months. At that time, the Company will recognize the deferred net gains (losses) as an adjustment to net investment income and interest expense over the term of the investment cash flows. During the three and six months ended June 30, 2021 and 2020, 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) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Foreign exchange contracts Foreign currency swaps and forwards $ — $ — $ — $ 3 Interest rate contracts Interest rate swaps, swaptions, and futures (32) 1 — 21 Credit contracts Credit derivatives that purchase credit protection — (2) — 4 Credit derivatives that assume credit risk 3 8 6 (4) Equity contracts Equity index swaps and options — — — 75 Total [1] $ (29) $ 7 $ 6 $ 99 [1] Excludes investments that contain an embedded credit derivative for which the Company has elected the fair value option. 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 June 30, 2021 Single name credit default swaps Investment grade risk exposure $ 50 $ 1 5 years Corporate Credit A $ — $ — Basket credit default swaps [4] Investment grade risk exposure 100 2 5 years Corporate Credit BBB+ — — Below investment grade risk exposure 75 8 5 years Corporate Credit B+ — — Investment grade risk exposure 100 1 7 years CMBS Credit AAA 100 (1) Below investment grade risk exposure 7 (3) Less than 1 year CMBS Credit B- 7 3 Total [5] $ 332 $ 9 $ 107 $ 2 As of December 31, 2020 Single name credit default swaps Investment grade risk exposure $ 175 $ 9 5 years Corporate Credit A- $ — $ — Basket credit default swaps [4] Investment grade risk exposure 500 12 5 years Corporate Credit BBB+ — — Investment grade risk exposure 100 1 8 years CMBS Credit AAA 100 (1) Below investment grade risk exposure 9 (4) Less than 1 year CMBS Credit CCC+ 9 4 Total [5] $ 784 $ 18 $ 109 $ 3 [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. 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 June 30, 2021 and December 31, 2020, the Company ha s pl edged cash collateral associated with derivative instruments of $1 and $0, respectively . In general, collateral receivable is recorded in other assets or other liabilities on the Company's Condensed Consolidated Balance Sheets as determined by the Company's election to offset on the balance sheet. As of June 30, 2021 and December 31, 2020, the Company pledged securities collateral associated with derivative instruments with a fair value of $58 and $90, respectively, which have been included in fixed maturities on the Company's Condensed Consolidated Balance Sheets. The counterparties generally have the right to sell or re- pledge these securities. In addition, as of June 30, 2021 and December 31, 2020, the Company has pledged initial margin of securities related to OTC-cleared and exchange traded derivatives with a fair value of $105 and $83, respectively, which are included within fixed maturities on the Company's Condensed Consolidated Balance Sheets. As of June 30, 2021 and December 31, 2020, the Company accepted cash collateral associated with derivative instruments of $15 and $24, respectively, which was invested and recorded in the Company's Condensed 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 June 30, 2021 and December 31, 2020, with a fair value of $1 as of both dates, which the Company has the right to sell or repledge. As of June 30, 2021 and December 31, 2020, the Company had no repledged securities and no securities held as collateral have been sold. Non-cash collateral accepted was held in separate custodial accounts and was not included in the Company’s Condensed Consolidated Balance Sheets . |
Premiums Receivable (Notes)
Premiums Receivable (Notes) | 6 Months Ended |
Jun. 30, 2021 | |
Credit Loss [Abstract] | |
Premiums Receivable Note [Text Block] | 7. PREMIUMS RECEIVABLE AND AGENTS' BALANCES Premiums Receivable and Agents' Balances As of June 30, 2021 As of December 31, 2020 Premiums receivable, excluding receivables for losses within a deductible and retrospectively-rated policy premiums $ 4,228 $ 3,851 Receivables for loss within a deductible and retrospectively-rated policy premiums, by credit quality: AAA — — AA 139 142 A 56 62 BBB 163 185 BB 105 115 Below BB 65 65 Total receivables for losses within a deductible and retrospectively-rated policy premiums 528 569 Total Premiums Receivable and Agents' Balances, Gross 4,756 4,420 ACL (134) (152) Total Premiums Receivable and Agents' Balances, Net of ACL $ 4,622 $ 4,268 ACL on Premiums Receivable and Agents' Balances Balances are considered past due when amounts that have been billed are not collected within contractually stipulated time periods. The Company had an immaterial amount of receivables with a due date of more than one year that are past-due. Premium receivable and agents' balances, excluding receivables for losses within a deductible and retrospectively-rated policy premiums, are primarily comprised of premiums due from policyholders, which are typically collectible within one year or less. For these balances, the ACL is estimated based on an aging of receivables and recent historical credit loss and collection experience, adjusted for current economic conditions and reasonable and supportable forecasts, when appropriate. A portion of the Company's Commercial Lines business is written with large deductibles or under retrospectively-rated plans. Under some commercial insurance contracts with a large deductible, the Company is obligated to pay the claimant the full amount of the claim and the Company is subsequently reimbursed by the policyholder for the deductible amount. As such, the Company is subject to credit risk until reimbursement is made. Retrospectively-rated policies are utilized primarily for workers' compensation coverage, whereby the ultimate premium is adjusted based on actual losses incurred. Although the premium adjustment feature of a retrospectively-rated policy substantially reduces insurance risk for the Company, it presents credit risk to the Company. The Company’s results of operations could be adversely affected if a significant portion of such policyholders failed to reimburse the Company for the deductible amount or the amount of additional premium owed under retrospectively-rated policies. The Company manages these credit risks through credit analysis, collateral requirements, and oversight. The ACL for receivables for loss within a deductible and retrospectively-rated policy premiums is estimated as the amount of the receivable exposed to loss multiplied by estimated factors for probability of default and the amount of loss given a default. The probability of default is assigned based on each policyholder's credit rating, or a rating is estimated if no external rating is available. Credit ratings are reviewed and updated at least annually. The exposure amount is estimated net of collateral and other credit enhancement, considering the nature of the collateral, potential future changes in collateral values, and historical loss information for the type of collateral obtained. The probability of default factors are historical corporate defaults for receivables with similar durations estimated through multiple economic cycles. Credit ratings are forward-looking and consider a variety of economic outcomes. The loss given default factors are based on a study of historical recovery rates for general creditors through multiple economic cycles. The Company's evaluation of the required ACL for receivables for loss within a deductible and retrospectively-rated policy premiums considers the current economic environment as well as the probability-weighted macroeconomic scenarios similar to the approach used for estimating the ACL for mortgage loans. See Note 5 - Investments. During the three and six months ended June 30, 2021, the ACL on premiums receivable decreased as the provision required on premiums written in the quarter was more than offset by write-offs and a reduction in the provision reflecting lessening expected impacts of COVID-19 relative to prior assumptions in certain lines of business. The three and six months ended June 30, 2020 reflected an increase in the ACL primarily due to increasing expected impacts of COVID-19. Rollforward of ACL on Premiums Receivable and Agents' Balances for the Three Months Ended June 30, 2021 June 30, 2020 Premiums Receivable and Agents' Balances, Excluding Receivables for Loss within a Deductible and Retrospectively-Rated Policy Premiums Receivables for Loss within a Deductible and Retrospectively-Rated Policy Premiums Total Premiums Receivable and Agents' Balances, Excluding Receivables for Loss within a Deductible and Retrospectively-Rated Policy Premiums Receivables for Loss within a Deductible and Retrospectively-Rated Policy Premiums Total Beginning ACL $ 108 $ 36 $ 144 $ 98 $ 41 $ 139 Current period provision (release) 1 1 2 48 3 51 Current period write-offs (15) — (15) (8) — (8) Current period recoveries 3 — 3 1 — 1 Ending ACL $ 97 $ 37 $ 134 $ 139 $ 44 $ 183 Rollforward of ACL on Premiums Receivable and Agents' Balances for the Six Months Ended June 30, 2021 June 30, 2020 Premiums Receivable and Agents' Balances, Excluding Receivables for Loss within a Deductible and Retrospectively-Rated Policy Premiums Receivables for Loss within a Deductible and Retrospectively-Rated Policy Premiums Total Premiums Receivable and Agents' Balances, Excluding Receivables for Loss within a Deductible and Retrospectively-Rated Policy Premiums Receivables for Loss within a Deductible and Retrospectively-Rated Policy Premiums Total Beginning ACL $ 117 $ 35 $ 152 $ 85 $ 60 $ 145 Cumulative effect of accounting change [1] (2) (21) (23) Adjusted beginning ACL 117 35 152 83 39 122 Current period provision (release) 5 2 7 76 5 81 Current period write-offs (30) — (30) (23) — (23) Current period recoveries 5 — 5 3 — 3 Ending ACL $ 97 $ 37 $ 134 $ 139 $ 44 $ 183 |
Reinsurance
Reinsurance | 6 Months Ended |
Jun. 30, 2021 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance [Text Block] | 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. 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 ("IBNR") 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 by Credit Quality Indicator As of June 30, 2021 As of December 31, 2020 Property and Casualty Group Benefits Corporate Total Property and Casualty Group Benefits Corporate Total A.M. Best Financial Strength Rating A++ $ 1,704 $ — $ — $ 1,704 $ 1,598 $ — $ — $ 1,598 A+ 1,881 239 282 2,402 1,788 230 305 2,323 A 682 — — 682 638 — — 638 A- 34 9 — 43 37 9 — 46 B++ 652 — 3 655 666 — 3 669 Below B++ 21 1 — 22 21 1 — 22 Total Rated by A.M. Best 4,974 249 285 5,508 4,748 240 308 5,296 Mandatory (Assigned) and Voluntary Risk Pools 254 — — 254 259 — — 259 Captives 306 — — 306 305 — — 305 Other not rated companies 241 7 — 248 254 5 — 259 Gross Reinsurance Recoverables 5,775 256 285 6,316 5,566 245 308 6,119 Allowance for uncollectible reinsurance (96) (1) (2) (99) (105) (1) (2) (108) Net Reinsurance Recoverables $ 5,679 $ 255 $ 283 $ 6,217 $ 5,461 $ 244 $ 306 $ 6,011 Balances are considered past due when amounts that have been billed are not collected within contractually stipulated time periods, generally 30, 60 or 90 days. There were no write-offs for the three and six months ended June 30, 2021, respectively. To manage reinsurer credit risk, a reinsurance security review committee evaluates the credit standing, financial performance, management and operational quality of each potential reinsurer. In placing reinsurance, the Company considers the nature of the risk reinsured, including the expected liability payout duration, and establishes limits tiered by reinsurer credit rating. Where its contracts permit, the Company secures future claim obligations with various forms of collateral or other credit enhancement, including irrevocable letters of credit, secured trusts, funds held accounts and group wide offsets. As part of its reinsurance recoverable review, the Company analyzes recent developments in commutation activity between reinsurers and cedants, recent trends in arbitration and litigation outcomes in disputes between cedants and reinsurers and the overall credit quality of the Company’s reinsurers. 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. The allowance for uncollectible reinsurance comprises an ACL and an allowance for disputed balances. The ACL is estimated as the amount of reinsurance recoverables exposed to loss multiplied by estimated factors for the probability of default and the amount of loss given a default. The probability of default is assigned based on each reinsurer's credit rating, or a rating is estimated if no external rating is available. Credit ratings are reviewed on a quarterly basis and any significant changes are reflected in an updated estimate. The probability of default factors are historical insurer and reinsurer defaults for liabilities with similar durations to the reinsured liabilities as estimated through multiple economic cycles. Credit ratings are forward-looking and consider a variety of economic outcomes. The loss given default factors are based on a study of historical recovery rates for general creditors of corporations through multiple economic cycles or, in the case of purchased annuities funding structured settlements accounted for as reinsurance, historical recovery rates for annuity contract holders. As shown in the table above, a portion of the total gross reinsurance recoverable balance relates to the Company’s participation in various mandatory (assigned) and voluntary risk pools. Reinsurance recoverables due from pools are backed by the financial position of all insurance companies participating in the pools and the credit backing the reinsurance recoverable is not limited to the financial strength of each pool. The mandatory pools generally are funded through policy assessments or surcharges and if any participant in the pool defaults, remaining liabilities are apportioned among the other members. The Company's evaluation of the required ACL for reinsurance recoverables considers the current economic environment as well as macroeconomic scenarios similar to the approach used to estimate the ACL for mortgage loans. See Note 5 - Investments. Insurance companies, including reinsurers, are regulated and hold risk-based capital ("RBC") to mitigate the risk of loss due to economic factors and other risks. Non-U.S. reinsurers are either subject to a capital regime substantively equivalent to domestic insurers or we hold collateral to support collection of reinsurance recoverables. As a result, there is limited history of losses from insurer defaults. The decrease in the ACL for the six months ended June 30, 2021 was primarily due to higher than expected recovery from one reinsurer on which the Company had recognized an ACL. Allowance for Uncollectible Reinsurance for the Three Months Ended June 30, 2021 June 30, 2020 Property and Casualty Group Benefits Corporate Total Property and Casualty Group Benefits Corporate Total Beginning allowance for uncollectible reinsurance $ 95 $ 1 $ 2 $ 98 $ 114 $ 1 $ 2 $ 117 Beginning allowance for disputed amounts 56 — — 56 65 — — $ 65 Beginning ACL 39 1 2 42 49 1 2 52 Current period provision (release) 1 — — 1 1 — — 1 Current period gross recoveries — — — — 1 — — 1 Ending ACL 40 1 2 43 51 1 2 54 Ending allowance for disputed amounts 56 — — 56 57 — — 57 Ending allowance for uncollectible reinsurance $ 96 $ 1 $ 2 $ 99 $ 108 $ 1 $ 2 $ 111 Allowance for Uncollectible Reinsurance for the Six Months Ended June 30, 2021 June 30, 2020 Property and Casualty Group Benefits Corporate Total Property and Casualty Group Benefits Corporate Total Beginning allowance for uncollectible reinsurance $ 105 $ 1 $ 2 $ 108 $ 114 $ — $ — $ 114 Beginning allowance for disputed amounts 53 — — 53 66 — — $ 66 Beginning ACL 52 1 2 55 48 — — 48 Cumulative effect of accounting change [1] — 1 1 2 Adjusted beginning ACL 52 1 2 55 48 1 1 50 Current period provision (release) (12) — — (12) 2 — 1 3 Current period gross recoveries — — — — 1 — — 1 Ending ACL 40 1 2 43 51 1 2 54 Ending allowance for disputed amounts 56 — — 56 57 — — 57 Ending allowance for uncollectible reinsurance $ 96 $ 1 $ 2 $ 99 $ 108 $ 1 $ 2 $ 111 [1] Represents the adjustment to the ACL recorded on adoption of accounting guidance for credit losses on January 1, 2020. For further information, see Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements included in the Company's 2020 Form 10-K Annual Report. |
Reserve for Unpaid Losses and L
Reserve for Unpaid Losses and Loss Adjustment Expenses | 6 Months Ended |
Jun. 30, 2021 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Activity in Liability [Abstract] | |
Reserve for Unpaid Losses and Loss Adjustment Expenses | 9. 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 six months ended June 30, 2021 2020 Beginning liabilities for unpaid losses and loss adjustment expenses, gross $ 29,622 $ 28,261 Reinsurance and other recoverables 5,725 5,275 Beginning liabilities for unpaid losses and loss adjustment expenses, net 23,897 22,986 Provision for unpaid losses and loss adjustment expenses Current accident year 3,838 3,962 Prior accident year development [1] 80 (245) Total provision for unpaid losses and loss adjustment expenses 3,918 3,717 Change in deferred gain on retroactive reinsurance included in other liabilities [1] (45) (83) Payments Current accident year (864) (778) Prior accident years (2,222) (2,575) Total payments (3,086) (3,353) Foreign currency adjustment (7) (10) Ending liabilities for unpaid losses and loss adjustment expenses, net 24,677 23,257 Reinsurance and other recoverables 5,905 5,427 Ending liabilities for unpaid losses and loss adjustment expenses, gross $ 30,582 $ 28,684 [1] Prior accident year development does not include the benefit of a portion of losses ceded under the Navigators and A&E 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 two adverse development cover reinsurance agreements, refer to Adverse Development Covers discussion below. Unfavorable (Favorable) Prior Accident Year Development For the six months ended June 30, 2021 2020 Workers’ compensation $ (83) $ (38) Workers’ compensation discount accretion 18 18 General liability 307 114 Marine 1 1 Package business (46) (6) Commercial property (20) (2) Professional liability (7) 5 Bond (14) (10) Assumed reinsurance — (7) Automobile liability - Commercial Lines — 27 Automobile liability - Personal Lines (43) (21) Homeowners 1 — Catastrophes (98) (413) Uncollectible reinsurance (10) (2) Other reserve re-estimates, net 29 6 Prior accident year development before change in deferred gain 35 (328) Change in deferred gain on retroactive reinsurance included in other liabilities [1] 45 83 Total prior accident year development $ 80 $ (245) [1] The change in deferred gain for the six months ended June 30, 2021 and 2020 included $45 and $83, respectively, of adverse development on Navigators 2018 and prior accident year reserves, primarily driven by professional liability in the 2021 period and professional liability, marine, general liability, prior accident year catastrophes, and assumed reinsurance in the 2020 period. Re-estimates of prior accident year reserves for the six months ended June 30, 2021 Workers’ compensation reserves were decreased primarily within small commercial and middle & large commercial accounts for the 2013 through 2017 accident years driven by lower than previously estimated claim severity. General liability reserves were increased including an increase for sexual molestation and sexual abuse claims above the amount of reserves previously recorded for this exposure, primarily to reflect an increase in reserves for claims made against the Boy Scouts of America ("BSA") as discussed further below, partially offset by reserve decreases for other mass torts and extra contractual liability claims. Package business reserves decreased largely due to lower estimated loss adjustment expenses for accident years 2014 to 2018 and a reduction in estimated reserves for extra contractual liability claims. Commercial property reserves were decreased primarily due to favorable development for the 2020 accident year in both middle & large commercial and global specialty. Professional liability reserves were decreased due to lower estimated severity in both large and middle market directors’ and officers’ (“D&O”) insurance for older accident years. More than offsetting this favorable reserve development were reserve increases on legacy Navigators public company directors’ and officers’ insurance for 2018 and prior accident years which is reflected within the change in deferred gain on retroactive reinsurance in the above table. Bond reserves were reduced mostly due to favorable emergence on contract surety claims driven by higher than previously anticipated recoveries, largely for the 2016 to 2017 accident years. Automobile liability reserves were decreased in Personal Lines principally due to lower estimated severity on AARP Direct and Agency claims, primarily within accident years 2015 to 2020, and a reduction in estimated reserves for extra contractual liability claims. Catastrophes reserves were decreased in both Commercial and Personal Lines primarily driven by a reduction in reserves for 2019 and 2020 wind and hail events, lower estimated losses from 2017 and 2018 hurricanes and a reduction in estimated losses from the 2017 and 2018 California wildfires, including an expected recovery of subrogation from a utility related to the 2018 Woolsey wildfire in California. Uncollectible reinsurance reserves were decreased due to a higher than expected recovery from one reinsurer on which the Company had recognized an allowance for credit losses. Other reserve re-estimates, net, were increased primarily due to an increase in reserves for sexual molestation and sexual abuse claims within P&C Other Operations, principally on assumed reinsurance. Re-estimates of prior accident year reserves for the six months ended June 30, 2020 Workers’ compensation reserves were reduced on national account business within middle & large commercial, driven by lower than previously estimated claim severity for the 2014 and prior accident years and were reduced in small commercial due to lower than expected claim severity for the 2013 to 2018 accident years. General liability reserves were increased in first quarter 2020, primarily related to guaranteed cost construction business for accident years 2016 to 2019 as incurred losses are developing higher than previously expected for premises and operations claims and product liability claims, partly due to a change in industry mix and a heavier concentration of losses in California than initially assumed. General liability reserves were also increased in second quarter 2020 on primary layer construction account business mainly related to the 2018 accident year and is largely included as a component of the change in deferred gain under retroactive reinsurance in the above table. In addition, the Company recorded an increase in reserves for sexual molestation and abuse claims in the second quarter of 2020 related to cases brought against religious and other institutions that were insureds of the Company. During the second quarter of 2020, the Company increased these reserves by $102 considering the impact of recent bankruptcy filings and an expected increase in claim incidence largely driven by legislation passed in a number of states that provides an opportunity for claimants to file claims for a period of time despite the fact that the original statute of limitations had expired. Marine reserves were increased principally due to an increase in domestic marine liability, mostly in accident years 2017 and 2018 due to a higher number of large losses. The increase in marine reserves is included as a component of the change in deferred gain under retroactive reinsurance in the above table. Commercial property reserves were decreased for accident year 2019 due to favorable developments on marine and middle market property claims. Professional liability reserves were increased primarily due to an increase in large D&O losses within Global Specialty, principally in the 2016 and 2017 accident years. The reserve increases within Global Specialty are included as a component of the change in deferred gain under retroactive reinsurance in the above table. Assumed reinsurance reserves were increased for accident year 2018 mostly due to higher accident and health reserve estimates for medical professionals on assumed casualty business. These reserve increases are included as a component of the change in deferred gain under retroactive reinsurance in the above table. Automobile liability reserves were decreased in Personal Lines principally due to lower than previously expected AARP Direct automobile liability claim severity for the 2017 and 2018 accident years. Automobile liability reserves were increased in Commercial Lines primarily due to higher than expected large losses on national accounts in the first quarter of 2020 related to accident years 2015 to 2017 and due to large losses within middle & large commercial, primarily within the 2018 and 2019 accident years. Catastrophes reserves were reduced, primarily due to a reduction in estimated reserves for 2017 and 2018 California wildfires and a reduction in estimated catastrophes for wind and hail events in the 2018 and 2019 accident years, partially offset by an increase in reserves for 2019 typhoons Hagibis and Faxai in Asia. The reduction in reserves for the 2017 and 2018 wildfires was largely due to recognizing a $289 subrogation benefit in the second quarter of 2020 from PG&E Corporation and Pacific Gas and Electric Company (together, “PG&E”). Settlement Agreement with Boy Scouts of America On April 16, 2021, the Company announced that it had entered into a Settlement Agreement and Release (the “Agreement”) with BSA pursuant to which The Hartford would pay $650 for sexual molestation and sexual abuse claims associated with liability policies issued by various Hartford writing companies in the 1970s and early 1980s. The Agreement was contingent on a number of conditions, including confirmation of a BSA global plan of reorganization that incorporated the Agreement. On July 2, 2021, BSA filed papers with the Bankruptcy Court requesting to be excused from its obligations under the Agreement. The Company opposes BSA’s requested relief and has argued that legally BSA cannot be excused from performance of its obligations under the Agreement. Even in the absence of a settlement with BSA, the Company continues to believe that $650 is a reasonable estimate of the settlement value of its exposure to sexual molestation and sexual abuse claims pertaining to the BSA and its local councils. Nonetheless, given uncertainties associated with BSA's request to be excused from its obligations under the Agreement, the large number of claims filed against BSA in the bankruptcy, the complex, disputed coverage issues involved with the Company’s policies issued to BSA and its local councils, and the inherent unpredictability of related litigation, and court ordered mediation, it is possible that adverse outcomes, if any, could have a material adverse effect on the Company’s consolidated operating results. 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 have been recognized as a dollar-for-dollar offset to direct losses incurred. Cumulative ceded losses exceeding the $650 reinsurance premium paid result in a deferred gain. As of June 30, 2021, the Company has incurred $860 in cumulative adverse development on asbestos and environmental reserves that have been ceded under the A&E ADC treaty with NICO with $640 of available limit remaining under the A&E ADC. As a result, the Company has recorded a $210 deferred gain within other liabilities, representing the difference between the reinsurance recoverable of $860 and ceded premium paid of $650. The deferred gain is 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 will result in charges against earnings which may be significant. 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 June 30, 2021, the Company has recorded a reinsurance recoverable under the Navigators ADC of $254, as estimated cumulative loss development on the 2018 and prior accident year reserves of $354 exceed the $100 deductible. While the reinsurance recoverable is $254, the Company has also recorded a $163 cumulative 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. Of the $163 of cumulative ceded losses in excess of ceded premium paid, $45 was recognized as a deferred gain in 2021 and $83 was recognized as a deferred gain in 2020. As the Company has ceded $254 of the $300 available limit, there is $46 of remaining limit available as of June 30, 2021. GROUP LIFE, DISABILITY AND ACCIDENT PRODUCTS Rollforward of Liabilities for Unpaid Losses and Loss Adjustment Expenses For the six months ended June 30, 2021 2020 Beginning liabilities for unpaid losses and loss adjustment expenses, gross $ 8,233 $ 8,256 Reinsurance recoverables [1] 237 246 Beginning liabilities for unpaid losses and loss adjustment expenses, net 7,996 8,010 Provision for unpaid losses and loss adjustment expenses Current incurral year 2,464 2,297 Prior year's discount accretion 106 111 Prior incurral year development [2] (282) (315) Total provision for unpaid losses and loss adjustment expenses [3] 2,288 2,093 Payments Current incurral year (1,000) (871) Prior incurral years (1,414) (1,290) Total payments (2,414) (2,161) Ending liabilities for unpaid losses and loss adjustment expenses, net 7,870 7,942 Reinsurance recoverables 250 244 Ending liabilities for unpaid losses and loss adjustment expenses, gross $ 8,120 $ 8,186 [1] Includes a cumulative effect adjustment of $(1) representing an adjustment to the ACL recorded on adoption of accounting guidance for credit losses on January 1, 2020. For further information refer to 2020 10-K, Note 1 - Basis of Presentation and Significant Accounting Policies. [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 ("ULAE") of $87 and $89 for the six months ended June 30, 2021 and 2020, respectively, that are recorded in insurance operating costs and other expenses in the Condensed Consolidated Statements of Operations. Re-estimates of prior incurral years reserves for the six months ended June 30, 2021 Group disability- Prior period reserve estimates decreased by approximately $240 largely driven by group long-term disability claim incidence lower than prior assumptions together with strong recoveries on prior incurral year claims. Also contributing was group short-term disability non-COVID-19 claim incidence lower than previously expected and a New York Paid Family Leave program refund. Group life and accident (including group life premium waiver)- Prior period reserve estimates decreased by approximately $30 largely driven by lower-than-previously expected claim incidence in both group life premium waiver and group accidental death & dismemberment. Supplemental Accident & Health- Prior period reserve estimates decreased by approximately $10 driven by lower-than-previously expected claim incidence during the pandemic. Re-estimates of prior incurral years reserves for the six months ended June 30, 2020 Group disability- Prior period reserve estimates decreased by approximately $230 largely driven by group long-term disability lower claim incidence and higher recoveries on prior incurral year claims, and a refund on the New York Paid Family Leave program. Group life and accident (including group life premium waiver)- Prior period reserve estimates decreased by approximately $65 largely driven by lower prior year mortality than prior assumptions in group life and lower-than-previously expected claim incidence in group life premium waiver. Supplemental Accident & Health- Prior period reserve estimates decreased by approximately $20 driven by l ower-than-expected emergence of prior year claims, especially for voluntary critical Illness and voluntary accident products. 10. RESERVE FOR FUTURE POLICY BENEFITS Changes in Reserves for Future Policy Benefits[1] For the six months ended June 30, 2021 2020 Beginning liability balance $ 638 $ 635 Incurred 33 53 Paid (54) (42) Change in unrealized investment gains and losses (6) 6 Ending liability balance $ 611 $ 652 Ending reinsurance recoverable asset $ 24 $ 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. |
Reserve for Future Policy Benef
Reserve for Future Policy Benefits | 6 Months Ended |
Jun. 30, 2021 | |
Insurance Loss Reserves [Abstract] | |
Reserve for Future Policy Benefits | 9. 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 six months ended June 30, 2021 2020 Beginning liabilities for unpaid losses and loss adjustment expenses, gross $ 29,622 $ 28,261 Reinsurance and other recoverables 5,725 5,275 Beginning liabilities for unpaid losses and loss adjustment expenses, net 23,897 22,986 Provision for unpaid losses and loss adjustment expenses Current accident year 3,838 3,962 Prior accident year development [1] 80 (245) Total provision for unpaid losses and loss adjustment expenses 3,918 3,717 Change in deferred gain on retroactive reinsurance included in other liabilities [1] (45) (83) Payments Current accident year (864) (778) Prior accident years (2,222) (2,575) Total payments (3,086) (3,353) Foreign currency adjustment (7) (10) Ending liabilities for unpaid losses and loss adjustment expenses, net 24,677 23,257 Reinsurance and other recoverables 5,905 5,427 Ending liabilities for unpaid losses and loss adjustment expenses, gross $ 30,582 $ 28,684 [1] Prior accident year development does not include the benefit of a portion of losses ceded under the Navigators and A&E 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 two adverse development cover reinsurance agreements, refer to Adverse Development Covers discussion below. Unfavorable (Favorable) Prior Accident Year Development For the six months ended June 30, 2021 2020 Workers’ compensation $ (83) $ (38) Workers’ compensation discount accretion 18 18 General liability 307 114 Marine 1 1 Package business (46) (6) Commercial property (20) (2) Professional liability (7) 5 Bond (14) (10) Assumed reinsurance — (7) Automobile liability - Commercial Lines — 27 Automobile liability - Personal Lines (43) (21) Homeowners 1 — Catastrophes (98) (413) Uncollectible reinsurance (10) (2) Other reserve re-estimates, net 29 6 Prior accident year development before change in deferred gain 35 (328) Change in deferred gain on retroactive reinsurance included in other liabilities [1] 45 83 Total prior accident year development $ 80 $ (245) [1] The change in deferred gain for the six months ended June 30, 2021 and 2020 included $45 and $83, respectively, of adverse development on Navigators 2018 and prior accident year reserves, primarily driven by professional liability in the 2021 period and professional liability, marine, general liability, prior accident year catastrophes, and assumed reinsurance in the 2020 period. Re-estimates of prior accident year reserves for the six months ended June 30, 2021 Workers’ compensation reserves were decreased primarily within small commercial and middle & large commercial accounts for the 2013 through 2017 accident years driven by lower than previously estimated claim severity. General liability reserves were increased including an increase for sexual molestation and sexual abuse claims above the amount of reserves previously recorded for this exposure, primarily to reflect an increase in reserves for claims made against the Boy Scouts of America ("BSA") as discussed further below, partially offset by reserve decreases for other mass torts and extra contractual liability claims. Package business reserves decreased largely due to lower estimated loss adjustment expenses for accident years 2014 to 2018 and a reduction in estimated reserves for extra contractual liability claims. Commercial property reserves were decreased primarily due to favorable development for the 2020 accident year in both middle & large commercial and global specialty. Professional liability reserves were decreased due to lower estimated severity in both large and middle market directors’ and officers’ (“D&O”) insurance for older accident years. More than offsetting this favorable reserve development were reserve increases on legacy Navigators public company directors’ and officers’ insurance for 2018 and prior accident years which is reflected within the change in deferred gain on retroactive reinsurance in the above table. Bond reserves were reduced mostly due to favorable emergence on contract surety claims driven by higher than previously anticipated recoveries, largely for the 2016 to 2017 accident years. Automobile liability reserves were decreased in Personal Lines principally due to lower estimated severity on AARP Direct and Agency claims, primarily within accident years 2015 to 2020, and a reduction in estimated reserves for extra contractual liability claims. Catastrophes reserves were decreased in both Commercial and Personal Lines primarily driven by a reduction in reserves for 2019 and 2020 wind and hail events, lower estimated losses from 2017 and 2018 hurricanes and a reduction in estimated losses from the 2017 and 2018 California wildfires, including an expected recovery of subrogation from a utility related to the 2018 Woolsey wildfire in California. Uncollectible reinsurance reserves were decreased due to a higher than expected recovery from one reinsurer on which the Company had recognized an allowance for credit losses. Other reserve re-estimates, net, were increased primarily due to an increase in reserves for sexual molestation and sexual abuse claims within P&C Other Operations, principally on assumed reinsurance. Re-estimates of prior accident year reserves for the six months ended June 30, 2020 Workers’ compensation reserves were reduced on national account business within middle & large commercial, driven by lower than previously estimated claim severity for the 2014 and prior accident years and were reduced in small commercial due to lower than expected claim severity for the 2013 to 2018 accident years. General liability reserves were increased in first quarter 2020, primarily related to guaranteed cost construction business for accident years 2016 to 2019 as incurred losses are developing higher than previously expected for premises and operations claims and product liability claims, partly due to a change in industry mix and a heavier concentration of losses in California than initially assumed. General liability reserves were also increased in second quarter 2020 on primary layer construction account business mainly related to the 2018 accident year and is largely included as a component of the change in deferred gain under retroactive reinsurance in the above table. In addition, the Company recorded an increase in reserves for sexual molestation and abuse claims in the second quarter of 2020 related to cases brought against religious and other institutions that were insureds of the Company. During the second quarter of 2020, the Company increased these reserves by $102 considering the impact of recent bankruptcy filings and an expected increase in claim incidence largely driven by legislation passed in a number of states that provides an opportunity for claimants to file claims for a period of time despite the fact that the original statute of limitations had expired. Marine reserves were increased principally due to an increase in domestic marine liability, mostly in accident years 2017 and 2018 due to a higher number of large losses. The increase in marine reserves is included as a component of the change in deferred gain under retroactive reinsurance in the above table. Commercial property reserves were decreased for accident year 2019 due to favorable developments on marine and middle market property claims. Professional liability reserves were increased primarily due to an increase in large D&O losses within Global Specialty, principally in the 2016 and 2017 accident years. The reserve increases within Global Specialty are included as a component of the change in deferred gain under retroactive reinsurance in the above table. Assumed reinsurance reserves were increased for accident year 2018 mostly due to higher accident and health reserve estimates for medical professionals on assumed casualty business. These reserve increases are included as a component of the change in deferred gain under retroactive reinsurance in the above table. Automobile liability reserves were decreased in Personal Lines principally due to lower than previously expected AARP Direct automobile liability claim severity for the 2017 and 2018 accident years. Automobile liability reserves were increased in Commercial Lines primarily due to higher than expected large losses on national accounts in the first quarter of 2020 related to accident years 2015 to 2017 and due to large losses within middle & large commercial, primarily within the 2018 and 2019 accident years. Catastrophes reserves were reduced, primarily due to a reduction in estimated reserves for 2017 and 2018 California wildfires and a reduction in estimated catastrophes for wind and hail events in the 2018 and 2019 accident years, partially offset by an increase in reserves for 2019 typhoons Hagibis and Faxai in Asia. The reduction in reserves for the 2017 and 2018 wildfires was largely due to recognizing a $289 subrogation benefit in the second quarter of 2020 from PG&E Corporation and Pacific Gas and Electric Company (together, “PG&E”). Settlement Agreement with Boy Scouts of America On April 16, 2021, the Company announced that it had entered into a Settlement Agreement and Release (the “Agreement”) with BSA pursuant to which The Hartford would pay $650 for sexual molestation and sexual abuse claims associated with liability policies issued by various Hartford writing companies in the 1970s and early 1980s. The Agreement was contingent on a number of conditions, including confirmation of a BSA global plan of reorganization that incorporated the Agreement. On July 2, 2021, BSA filed papers with the Bankruptcy Court requesting to be excused from its obligations under the Agreement. The Company opposes BSA’s requested relief and has argued that legally BSA cannot be excused from performance of its obligations under the Agreement. Even in the absence of a settlement with BSA, the Company continues to believe that $650 is a reasonable estimate of the settlement value of its exposure to sexual molestation and sexual abuse claims pertaining to the BSA and its local councils. Nonetheless, given uncertainties associated with BSA's request to be excused from its obligations under the Agreement, the large number of claims filed against BSA in the bankruptcy, the complex, disputed coverage issues involved with the Company’s policies issued to BSA and its local councils, and the inherent unpredictability of related litigation, and court ordered mediation, it is possible that adverse outcomes, if any, could have a material adverse effect on the Company’s consolidated operating results. 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 have been recognized as a dollar-for-dollar offset to direct losses incurred. Cumulative ceded losses exceeding the $650 reinsurance premium paid result in a deferred gain. As of June 30, 2021, the Company has incurred $860 in cumulative adverse development on asbestos and environmental reserves that have been ceded under the A&E ADC treaty with NICO with $640 of available limit remaining under the A&E ADC. As a result, the Company has recorded a $210 deferred gain within other liabilities, representing the difference between the reinsurance recoverable of $860 and ceded premium paid of $650. The deferred gain is 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 will result in charges against earnings which may be significant. 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 June 30, 2021, the Company has recorded a reinsurance recoverable under the Navigators ADC of $254, as estimated cumulative loss development on the 2018 and prior accident year reserves of $354 exceed the $100 deductible. While the reinsurance recoverable is $254, the Company has also recorded a $163 cumulative 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. Of the $163 of cumulative ceded losses in excess of ceded premium paid, $45 was recognized as a deferred gain in 2021 and $83 was recognized as a deferred gain in 2020. As the Company has ceded $254 of the $300 available limit, there is $46 of remaining limit available as of June 30, 2021. GROUP LIFE, DISABILITY AND ACCIDENT PRODUCTS Rollforward of Liabilities for Unpaid Losses and Loss Adjustment Expenses For the six months ended June 30, 2021 2020 Beginning liabilities for unpaid losses and loss adjustment expenses, gross $ 8,233 $ 8,256 Reinsurance recoverables [1] 237 246 Beginning liabilities for unpaid losses and loss adjustment expenses, net 7,996 8,010 Provision for unpaid losses and loss adjustment expenses Current incurral year 2,464 2,297 Prior year's discount accretion 106 111 Prior incurral year development [2] (282) (315) Total provision for unpaid losses and loss adjustment expenses [3] 2,288 2,093 Payments Current incurral year (1,000) (871) Prior incurral years (1,414) (1,290) Total payments (2,414) (2,161) Ending liabilities for unpaid losses and loss adjustment expenses, net 7,870 7,942 Reinsurance recoverables 250 244 Ending liabilities for unpaid losses and loss adjustment expenses, gross $ 8,120 $ 8,186 [1] Includes a cumulative effect adjustment of $(1) representing an adjustment to the ACL recorded on adoption of accounting guidance for credit losses on January 1, 2020. For further information refer to 2020 10-K, Note 1 - Basis of Presentation and Significant Accounting Policies. [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 ("ULAE") of $87 and $89 for the six months ended June 30, 2021 and 2020, respectively, that are recorded in insurance operating costs and other expenses in the Condensed Consolidated Statements of Operations. Re-estimates of prior incurral years reserves for the six months ended June 30, 2021 Group disability- Prior period reserve estimates decreased by approximately $240 largely driven by group long-term disability claim incidence lower than prior assumptions together with strong recoveries on prior incurral year claims. Also contributing was group short-term disability non-COVID-19 claim incidence lower than previously expected and a New York Paid Family Leave program refund. Group life and accident (including group life premium waiver)- Prior period reserve estimates decreased by approximately $30 largely driven by lower-than-previously expected claim incidence in both group life premium waiver and group accidental death & dismemberment. Supplemental Accident & Health- Prior period reserve estimates decreased by approximately $10 driven by lower-than-previously expected claim incidence during the pandemic. Re-estimates of prior incurral years reserves for the six months ended June 30, 2020 Group disability- Prior period reserve estimates decreased by approximately $230 largely driven by group long-term disability lower claim incidence and higher recoveries on prior incurral year claims, and a refund on the New York Paid Family Leave program. Group life and accident (including group life premium waiver)- Prior period reserve estimates decreased by approximately $65 largely driven by lower prior year mortality than prior assumptions in group life and lower-than-previously expected claim incidence in group life premium waiver. Supplemental Accident & Health- Prior period reserve estimates decreased by approximately $20 driven by l ower-than-expected emergence of prior year claims, especially for voluntary critical Illness and voluntary accident products. 10. RESERVE FOR FUTURE POLICY BENEFITS Changes in Reserves for Future Policy Benefits[1] For the six months ended June 30, 2021 2020 Beginning liability balance $ 638 $ 635 Incurred 33 53 Paid (54) (42) Change in unrealized investment gains and losses (6) 6 Ending liability balance $ 611 $ 652 Ending reinsurance recoverable asset $ 24 $ 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. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. INCOME TAXES INCOME TAX EXPENSE Income Tax Rate Reconciliation Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Tax provision at U.S. federal statutory rate $ 233 $ 125 $ 297 $ 197 Tax-exempt interest (10) (12) (21) (24) Increase in deferred tax valuation allowance 6 7 7 13 Sale of business (5) — (5) — Tax law change (7) — (7) — Other (12) 4 (12) 9 Provision for income taxes $ 205 $ 124 $ 259 $ 195 OTHER TAX MATTERS Unrecognized tax benefits were $15 and $14 at the beginning and end of the periods ended June 30, 2021 and 2020, respectively. The entire amount of unrecognized tax benefits, if recognized, would affect the effective tax rate in the period of the release. The Company believes it is reasonably possible approximately $5 of its currently unrecognized tax benefits associated with dividends from segregated asset accounts of the life and annuity business sold in 2018 may be recognized by the end of 2021 as a result of a lapse in the applicable statute of limitations. This liability is subject to a tax indemnification agreement and has a corresponding receivable included in other assets which would also be taken down upon lapse of the statute of limitations. On June 10, 2021, the United Kingdom enacted Finance Bill 2021, which included an increase in the corporate tax rate from 19% to 25%, effective April 1, 2023. In the three and six months ended June 30, 2021, the Company recorded a tax benefit of $7, which reflects the estimated benefit of the change in tax rate on the deferred tax assets and liabilities of its U.K. subsidiaries. As of June 30, 2021, the Company has foreign net operating losses of $17 for which a valuation allowance of $3 has been established. While the foreign net operating losses ("NOLs") do not expire, this assessment reflects uncertainty in the Company's ability to generate sufficient taxable income in the near term in those specific jurisdictions. Management has assessed the need for a valuation allowance against its deferred tax assets based on tax character and jurisdiction. In making the assessment, 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 which management views as prudent and feasible. The federal income tax audits for the Company have been completed through 2013, and the Company is not currently under federal income tax examination for any open years. The statute of limitations is closed through the 2016 tax year with the exception of NOL carryforwards utilized in open tax years. 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. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 12. COMMITMENTS AND CONTINGENCIES 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. 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 related to sexual molestation and sexual abuse claims discussed in Note 9 - Reserve for Unpaid Losses and Loss Adjustment Expenses of this Form 10-Q and in Note 12 - Reserve for Unpaid Losses and Loss Adjustment Expenses, of the Company's Annual Report on Form 10-K for the year ended December 31, 2020, and in the following discussion under the caption “COVID-19 Pandemic Business Income Insurance Coverage Litigation” and under the caption “Run-off 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. COVID-19 Pandemic Business Income Insurance Coverage Litigation Like many others in the property and casualty insurance industry, beginning in April 2020, various direct and indirect subsidiaries of the Company (collectively the "Hartford Writing Companies”), and in some instances the Company itself, have been served as defendants in lawsuits seeking insurance coverage under commercial insurance policies issued by the Hartford Writing Companies for alleged losses resulting from the shutdown or suspension of their businesses due to the spread of COVID-19. More than 250 such lawsuits have been filed, of which more than 50 purport to be filed on behalf of broad nationwide or statewide classes of policyholders. These lawsuits have been filed in state and federal courts in roughly 34 states. Although the allegations vary, the plaintiffs generally seek a declaration of insurance coverage, damages for breach of contract in unspecified amounts, interest, and attorneys' fees. Many of the lawsuits also allege that the insurance claims were denied in bad faith or otherwise in violation of state laws and seek extra-contractual or punitive damages. The Company and its subsidiaries deny the allegations and continue to vigorously defend these suits. The Hartford Writing Companies maintain that they have no coverage obligations with respect to these suits for business income allegedly lost by the plaintiffs due to the COVID-19 pandemic based on the clear terms of the applicable insurance policies. Although the policy terms vary depending, among other things, upon the size, nature, and location of the policyholder’s business, in general, the claims at issue in these lawsuits were denied because the claimant identified no direct physical damage or loss to property at the insured premises, and the governmental orders that led to the complete or partial shutdown of the business were not due to the existence of any direct physical loss or damage in the immediate vicinity of the insured premises and did not prohibit access to the insured premises, as required by the terms of the insurance policies. In addition, the vast majority of the policies at issue expressly exclude from coverage any loss caused directly or indirectly by the presence, growth, proliferation, spread or activity of a virus, subject to a narrow set of exceptions not applicable in connection with this pandemic, and contain a pollution and contamination exclusion that, among other things, expressly excludes from coverage any loss caused by material that threatens human health or welfare. In addition to the inherent difficulty in predicting litigation outcomes, the COVID-19 pandemic business income coverage lawsuits present numerous uncertainties and contingencies that are not yet known, including how many policyholders will ultimately file claims, the number of lawsuits that will be filed, the extent to which any state or nationwide classes will be certified, and the size and scope of any such classes. The legal theories advocated by plaintiffs vary significantly by case as do the state laws that govern the policy interpretation. These lawsuits are at various stages of litigation; some are in the earliest stages of litigation, many complaints are in the process of being amended, some have been dismissed voluntarily and may be refiled, while others have been dismissed through rulings in favor of the Hartford Writing Companies. Discovery is underway in certain single plaintiff cases and class actions. More than 30 policyholders have appealed dismissals in favor of the Hartford Writing Companies. While these appeals are at various stages of the process, no decisions have been issued at this time. In addition, business income calculations depend upon a wide range of factors that are particular to the circumstances of each individual policyholder and, here, almost none of the plaintiffs have submitted proofs of loss or otherwise quantified or factually supported any allegedly covered loss, and, in any event, the Company’s experience shows that demands for damages often bear little relation to a reasonable estimate of potential loss. Accordingly, management cannot now reasonably estimate the possible loss or range of loss, if any. Nonetheless, given the large number of claims and potential claims, the indeterminate amounts sought, and the inherent unpredictability of litigation, it is possible that adverse outcomes, if any, in the aggregate, could have a material adverse effect on the Company’s consolidated operating results. 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, as of June 30, 2021, the Company reported $646 of net asbestos reserves and $74 of net environmental reserves. In addition, the Company has recorded a $210 deferred gain within other liabilities for losses economically ceded to NICO but for which the benefit is not recognized in earnings until later periods. 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 June 30, 2021 , the Company has incurred $860 in cumulative adverse development on A&E reserves that have been ceded under the A&E ADC treaty with NICO, leaving $640 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 12, Reserve for 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 June 30, 2021 was $59 for which the legal entities have posted collateral of $58 in the normal course of business. Based on derivative market values as of June 30, 2021, a downgrade of the current financial strength ratings by either Moody's or S&P would not require additional assets to be posted as collateral. This requirement 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. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Equity | 13. EQUITY EQUITY REPURCHASE PROGRAM During the six months ended June 30, 2021, the Company repurchased $691 (11 million shares) of common stock under the share repurchase program that is effective January 1, 2021 until December 31, 2022 as authorized by the Board of Directors in December 2020. The share repurchase program was initially authorized at $1.5 billion and, in April 2021, the Company announced an increase in the share repurchase authorization to $2.5 billion, which remains effective until December 31, 2022. During the period July 1, 2021 through July 27, 2021, the Company repurchased $116 (1.9 million shares) under this repurchase program. The timing of future repurchases will be dependent on several factors, including the market price of the Company's securities, the Company's capital position, consideration of the effect of any repurchases on the Company's financial strength or credit ratings, the Company's blackout periods, and other considerations. During the six months ended June 30, 2020, The Company repurchased $150 (2.7 million shares) of common stock under the previous share repurchase program that expired December 31, 2020. |
Changes in and Reclassification
Changes in and Reclassifications from Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Changes in and Reclassifications from Accumulated Other Comprehensive Income (Loss) | 14. CHANGES IN AND RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Changes in AOCI, Net of Tax for the Three Months Ended June 30, 2021 Changes in Net Unrealized Gain on Fixed Maturities Unrealized Loss on Fixed Maturities with ACL Net Gain on Cash Flow Hedging Instruments Foreign Currency Translation Adjustments Pension and Other Postretirement Plan Adjustments AOCI, Beginning balance $ 1,909 $ (2) $ 17 $ 44 $ (1,704) $ 264 OCI before reclassifications 337 — 1 2 (1) 339 Amounts reclassified from AOCI (42) — (6) — 15 (33) OCI, net of tax 295 — (5) 2 14 306 Ending balance $ 2,204 $ (2) $ 12 $ 46 $ (1,690) $ 570 Changes in AOCI, Net of Tax for the Six Months Ended June 30, 2021 Changes in Net Unrealized Gain on Fixed Maturities Unrealized Loss on Fixed Maturities with ACL Net Gain on Cash Flow Hedging Instruments Foreign Currency Translation Adjustments Pension and Other Postretirement Plan Adjustments AOCI, Beginning balance $ 2,834 $ (2) $ 12 $ 43 $ (1,717) $ 1,170 OCI before reclassifications (585) — 13 3 (1) (570) Amounts reclassified from AOCI (45) — (13) — 28 (30) OCI, net of tax (630) — — 3 27 (600) Ending balance $ 2,204 $ (2) $ 12 $ 46 $ (1,690) $ 570 Reclassifications from AOCI Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Affected Line Item in the Condensed Consolidated Statement of Operations Net Unrealized Gain on Fixed Maturities Available-for-sale fixed maturities $ 53 $ 57 Net realized capital gains (losses) 53 57 Total before tax 11 12 Income tax expense $ 42 $ 45 Net income Net Gains on Cash Flow Hedging Instruments Interest rate swaps $ 10 20 Net investment income Interest rate swaps (3) (5) Interest expense Foreign currency swaps 1 2 Net investment income 8 17 Total before tax 2 4 Income tax expense $ 6 $ 13 Net income Pension and Other Postretirement Plan Adjustments Amortization of prior service credit $ 1 $ 3 Insurance operating costs and other expenses Amortization of actuarial loss (20) (39) Insurance operating costs and other expenses (19) (36) Total before tax (4) (8) Income tax expense $ (15) $ (28) Net income Total amounts reclassified from AOCI $ 33 $ 30 Net income Changes in AOCI, Net of Tax for the Three Months Ended June 30, 2020 Changes in Net Unrealized Gain on Fixed Maturities Net Unrealized Loss on Fixed Maturities with ACL Net Gain on Cash Flow Hedging Instruments Foreign Currency Translation Adjustments Pension and Other Postretirement Plan Adjustments AOCI, Beginning balance $ 627 $ (2) $ 53 $ 26 $ (1,661) $ (957) OCI before reclassifications 1,469 — — 1 — 1,470 Amounts reclassified from AOCI (41) — (5) — 12 (34) OCI, net of tax 1,428 — (5) 1 12 1,436 Ending balance $ 2,055 $ (2) $ 48 $ 27 $ (1,649) $ 479 Changes in AOCI, Net of Tax for the Six Months Ended June 30, 2020 Changes in Net Unrealized Gain on Fixed Maturities Net Unrealized Loss on Fixed Maturities with ACL Net Gain on Cash Flow Hedging Instruments Foreign Currency Translation Adjustments Pension and Other Postretirement Plan Adjustments AOCI, net of tax Beginning balance $ 1,684 $ (3) $ 9 $ 34 $ (1,672) $ 52 OCI before reclassifications 454 1 47 (7) (1) 494 Amounts reclassified from AOCI (83) — (8) — 24 (67) OCI, net of tax 371 1 39 (7) 23 427 Ending balance $ 2,055 $ (2) $ 48 $ 27 $ (1,649) $ 479 Reclassifications from AOCI Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Affected Line Item in the Condensed Consolidated Statement of Operations Net Unrealized Gain on Fixed Maturities Available-for-sale fixed maturities $ 52 $ 105 Net realized capital gains (losses) 52 105 Total before tax 11 22 Income tax expense $ 41 $ 83 Net income Net Gains on Cash Flow Hedging Instruments Interest rate swaps $ 7 10 Net investment income Interest rate swaps (2) (2) Interest expense Foreign currency swaps 1 2 Net investment income 6 10 Total before tax 1 2 Income tax expense $ 5 $ 8 Net income Pension and Other Postretirement Plan Adjustments Amortization of prior service credit $ 1 $ 3 Insurance operating costs and other expenses Amortization of actuarial loss (16) (33) Insurance operating costs and other expenses (15) (30) Total before tax (3) (6) Income tax expense $ (12) $ (24) Net income Total amounts reclassified from AOCI $ 34 $ 67 Net income |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | 15. EMPLOYEE BENEFIT PLANS The Company’s employee benefit plans are described in Note 19 - Employee Benefit Plans of Notes to Consolidated Financial Statements included in The Hartford’s 2020 Annual Report on Form 10-K. Net periodic cost (benefit) is recognized in insurance operating costs and other expenses in the condensed consolidated statement of operations. Net Periodic Cost (Benefit) Pension Benefits Other Postretirement Benefits Three Months Ended June 30, Six Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 2021 2020 2021 2020 Service cost $ 1 $ 1 $ 2 $ 2 $ — $ — $ — $ — Interest cost 23 32 47 64 1 1 2 3 Expected return on plan assets (51) (54) (102) (108) (1) (1) (2) (2) Amortization of prior service credit — — — — (1) (1) (3) (3) Amortization of actuarial loss 18 15 35 30 2 1 4 3 Net periodic cost (benefit) $ (9) $ (6) $ (18) $ (12) $ 1 $ — $ 1 $ 1 |
Restructuring and Related Activ
Restructuring and Related Activities | 6 Months Ended |
Jun. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure | 17. RESTRUCTURING AND OTHER COSTS In recognition of the need to become more cost efficient and competitive along with enhancing the experience we provide to agents and customers, on July 30, 2020 the Company announced an operational transformation and cost reduction plan it refers to as Hartford Next. Hartford Next is intended to reduce annual insurance operating costs and other expenses through reduction of the Company's headcount, investment in information technology ("IT") to further enhance our capabilities, and other activities. The activities are expected to be substantially complete by the end of 2022. Termination benefits related to workforce reductions and professional fees are included within restructuring and other costs in the Condensed Consolidated Statement of Operations and unpaid restructuring costs are included in other liabilities in the June 30, 2021 Condensed Consolidated Balance Sheet. In the second quarter of 2021, the severance benefits accrual was reduced $9 due to recent experience of higher than expected voluntary attrition. Subsequent to June 30, 2021, the Company expects to incur additional costs including amortization of right of use assets and other lease exit costs, other IT costs to retire applications, professional fees and other expenses. Total restructuring and other costs are expected to be approximately $152, before tax, and are being recognized in Corporate for segment reporting. The estimated restructuring and other costs for future periods do not include all costs associated with the real estate consolidation plan as those plans are still being finalized. Restructuring and Other Costs, Before Tax Incurred in the Three Months Ended June 30, 2021 Incurred in the Six Months Ended June 30, 2021 Cumulative Incurred Through June 30, 2021 Total Amount Expected to be Incurred Severance benefits $ (9) $ (9) $ 64 $ 64 IT costs 2 4 6 27 Professional fees and other expenses 7 16 45 61 Total restructuring and other costs, before tax $ — $ 11 $ 115 $ 152 Accrued Restructuring and Other Costs Six Months Ended June 30, 2021 Severance Benefits and Related Costs IT Costs Professional Fees and Other Total Restructuring and Other Costs Liability Balance, beginning of period $ 54 $ — $ — $ 54 Incurred (9) 4 16 11 Payments (8) (4) (15) (27) Balance, end of period $ 37 $ — $ 1 $ 38 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 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 in the United States as well as in the United Kingdom, continental Europe and other international locations (collectively, “The Hartford”, the “Company”, “we” or “our”). On September 30, 2020, the Company entered into a definitive agreement to sell all of the issued and outstanding equity of Navigators Holdings (Europe) N.V., a Belgium holding company, and its subsidiaries, Bracht, Deckers & Mackelbert N.V. (“BDM”) and Assurances Contintales Contintale Verzekeringen N.V. (“ASCO”), (collectively referred to as "Continental Europe Operations"). For further discussion of this transaction see Note 16 - Business Disposition . The Condens ed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, which differ materially from the accounting practices prescribed by various insurance regulatory authorities. These Condensed Consolidated Financial Statements and Notes should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company's 2020 Form 10-K Annual Report. The results of operations for interim periods are not necessarily indicative of the results that may be expected for the full year. The accompanying Condensed Consolidated Financial Statements and Notes are unaudited. These financial statements reflect all adjustments (generally consisting only of normal accruals) which are, in the opinion of management, necessary for the fair statement of the financial position, results of operations and cash flows for the interim periods. The |
Consolidation | CONSOLIDATION The Condensed 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. Intercompany transactions and balances between The Hartford and its subsidiaries and affiliates have been eliminated. |
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; and contingencies relating to corporate litigation and regulatory matters. |
Reclassification, Comparability Adjustment [Policy Text Block] | RECLASSIFICATIONSCertain reclassifications have been made to prior year financial information to conform to the current year presentation. |
Commitments and Contingencies, Policy [Policy Text Block] | 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. |
Fair Value Measurement, Policy | 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. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | 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, 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 significant 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 over-the-counter ("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 Other inputs for ABS, CLOs and RMBS: • 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 Other inputs for below investment grade privately placed securities and private bank loans: U.S. Treasuries, Municipals, and Foreign government/government agencies • Benchmark yields and spreads • 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 Foreign exchange derivatives • Swap yield curve • Currency spot and forward rates • Cross currency basis curves Not applicable Interest rate derivatives • Swap yield curve Not applicable |
Derivatives, Policy [Policy Text Block] | 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. |
Investment Holdings (Policies)
Investment Holdings (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Schedule of Investments [Abstract] | |
Financing Receivable, Allowance for Credit Losses, Policy for Uncollectible Amounts [Policy Text Block] | The Company will record an "intent-to-sell impairment" as a reduction to the amortized cost of fixed maturities, AFS in an unrealized loss position if the Company intends to sell or it is more likely than not that the Company will be required to sell the fixed maturity before a recovery in value. A corresponding charge is recorded in net realized capital losses equal to the difference between the fair value on the impairment date and the amortized cost basis of the fixed maturity before recognizing the impairment.When fixed maturities are in an unrealized loss position and the Company does not record an intent-to-sell impairment, the Company will record an ACL for the portion of the unrealized loss due to a credit loss. Any remaining unrealized loss on a fixed maturity after recording an ACL is the non-credit amount and is recorded in OCI. The ACL is the excess of the amortized cost over the greater of the Company's best estimate of the present value of expected future cash flows or the security's fair value. Cash flows are discounted at the effective yield that is used to record interest income. The ACL cannot exceed the unrealized loss and, therefore, it may fluctuate with changes in the fair value of the fixed maturity if the fair value is greater than the Company's best estimate of the present value of expected future cash flows. The initial ACL and any subsequent changes are recorded in net realized capital gains and losses. The ACL is written off against the amortized cost in the period in which all or a portion of the related fixed maturity is determined to be uncollectible |
Business Dispositions (Tables)
Business Dispositions (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract] | |
Disposal Groups, Including Discontinued Operations | Carrying Value of Assets and Liabilities to be Transferred in Connection With the Sale [1] As of June 30, 2021 As of December 31, 2020 Assets Investments and cash $ 156 $ 142 Reinsurance recoverables and other 24 35 Total assets held for sale 180 177 Liabilities Unpaid losses and loss adjustment expenses 76 84 Unearned premiums 22 31 Other liabilities 66 43 Total liabilities held for sale $ 164 $ 158 |
Earnings (Loss) Per Common Shar
Earnings (Loss) Per Common Share Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Common Share | Computation of Basic and Diluted Earnings per Common Share Three Months Ended June 30, Six Months Ended June 30, (In millions, except for per share data) 2021 2020 2021 2020 Earnings Net income $ 905 $ 468 $ 1,154 $ 741 Less: Preferred stock dividends 5 5 10 10 Net income available to common stockholders $ 900 $ 463 $ 1,144 $ 731 Shares Weighted average common shares outstanding, basic 353.7 358.1 356.0 358.3 Dilutive effect of stock-based awards under compensation plans 4.8 1.2 4.4 1.9 Weighted average common shares outstanding and dilutive potential common shares 358.5 359.3 360.4 360.2 Net income available to common stockholders per common share Basic $ 2.54 $ 1.29 $ 3.21 $ 2.04 Diluted $ 2.51 $ 1.29 $ 3.17 $ 2.03 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Reconciliation of Net Income from Segments to Consolidated | Net Income (Loss) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Commercial Lines $ 569 $ (66) $ 698 $ 55 Personal Lines 118 371 253 469 Property & Casualty Other Operations 17 5 4 10 Group Benefits 170 101 179 205 Hartford Funds 52 39 99 75 Corporate (21) 18 (79) (73) Net income 905 468 1,154 741 Preferred stock dividends 5 5 10 10 Net income available to common stockholders $ 900 $ 463 $ 1,144 $ 731 |
Reconciliation of Revenue from Segments to Consolidated | Revenues Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Earned premiums and fee income: Commercial Lines Workers’ compensation $ 768 $ 720 $ 1,506 $ 1,536 Liability 402 337 777 680 Marine 57 67 115 132 Package business 409 383 802 760 Property 205 185 405 390 Professional liability 158 149 313 292 Bond 71 68 140 138 Assumed reinsurance 84 72 152 138 Automobile 198 181 386 369 Total Commercial Lines 2,352 2,162 4,596 4,435 Personal Lines Automobile 515 462 1,027 1,005 Homeowners 231 241 461 481 Total Personal Lines [1] 746 703 1,488 1,486 Group Benefits Group disability 744 719 1,483 1,445 Group life 604 632 1,206 1,239 Other 79 72 156 130 Total Group Benefits 1,427 1,423 2,845 2,814 Hartford Funds Mutual fund and Exchange-Traded Products ("ETP") 272 207 531 432 Talcott Resolution life and annuity separate accounts [2] 24 20 47 42 Total Hartford Funds 296 227 578 474 Corporate 14 17 26 34 Total earned premiums and fee income 4,835 4,532 9,533 9,243 Net investment income 581 339 1,090 798 Net realized capital gains (losses) 147 109 227 (122) Other revenues 26 88 38 105 Total revenues $ 5,589 $ 5,068 $ 10,888 $ 10,024 [1] For the three months ended June 30, 2021 and 2020, AARP members accounted for earned premiums of $682 and $633, respectively. For the six months ended June 30, 2021 and 2020, AARP members accounted for earned premiums of $1.36 billion and $1.34 billion, respectively. [2] Represents revenues earned for investment advisory services on the life and annuity separate account AUM sold in May 2018 that is still managed by the Company's Hartford Funds segment. |
Disaggregation of Revenue [Table Text Block] | Revenue from Non-Insurance Contracts with Customers Three Months Ended June 30, Six Months Ended June 30, Revenue Line Item 2021 2020 2021 2020 Commercial Lines Installment billing fees Fee income $ 8 $ 5 $ 17 $ 13 Personal Lines Installment billing fees Fee income 8 9 16 18 Insurance servicing revenues Other revenues 21 21 40 40 Group Benefits Administrative services Fee income 49 45 93 88 Hartford Funds Advisor, distribution and other management fees Fee income 270 207 527 431 Other fees Fee income 26 20 51 43 Corporate Investment management and other fees Fee income 14 12 26 25 Transition service revenues Other revenues — — — 2 Total non-insurance revenues with customers $ 396 $ 319 $ 770 $ 660 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 Total Quoted Prices in Significant Significant Assets accounted for at fair value on a recurring basis Fixed maturities, AFS Asset backed securities ("ABS") $ 1,321 $ — $ 1,307 $ 14 Collateralized loan obligations ("CLOs") 3,100 — 2,725 375 Commercial mortgage-backed securities ("CMBS") 4,095 — 4,009 86 Corporate 19,161 — 18,020 1,141 Foreign government/government agencies 873 — 873 — Municipal 9,161 — 9,161 — Residential mortgage-backed securities ("RMBS") 3,520 — 3,218 302 U.S. Treasuries 2,792 250 2,542 — Total fixed maturities 44,023 250 41,855 1,918 Equity securities, at fair value 1,693 1,061 558 74 Derivative assets Credit derivatives 13 — 13 — Interest rate derivatives 1 — 1 — Total derivative assets [1] 14 — 14 — Short-term investments 3,398 2,204 1,176 18 Total assets accounted for at fair value on a recurring basis $ 49,128 $ 3,515 $ 43,603 $ 2,010 Liabilities accounted for at fair value on a recurring basis Derivative liabilities Credit derivatives $ (2) $ — $ (2) $ — Foreign exchange derivatives (4) — (4) — Interest rate derivatives (53) — (53) — Total derivative liabilities [2] (59) — (59) — Total liabilities accounted for at fair value on a recurring basis $ (59) $ — $ (59) $ — Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of December 31, 2020 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 $ 1,564 $ — $ 1,564 $ — CLOs 2,780 — 2,420 360 CMBS 4,484 — 4,407 77 Corporate 20,273 — 19,392 881 Foreign government/government agencies 919 — 913 6 Municipal 9,503 — 9,503 — RMBS 4,107 — 3,726 381 U.S. Treasuries 1,405 529 876 — Total fixed maturities 45,035 529 42,801 1,705 Equity securities, at fair value 1,438 872 496 70 Derivative assets Credit derivatives 21 — 21 — Foreign exchange derivatives 1 — 1 — Interest rate derivatives 1 — 1 — Total derivative assets [1] 23 — 23 — Short-term investments 3,283 2,663 590 30 Total assets accounted for at fair value on a recurring basis $ 49,779 $ 4,064 $ 43,910 $ 1,805 Liabilities accounted for at fair value on a recurring basis Derivative liabilities Foreign exchange derivatives (14) — (14) — Interest rate derivatives (70) — (70) — Total derivative liabilities [2] (84) — (84) — Total liabilities accounted for at fair value on a recurring basis $ (84) $ — $ (84) $ — [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. |
Fair Value Inputs, Assets, Quantitative Information | Significant Unobservable Inputs for Level 3 - Securities Assets accounted for at fair value on a recurring basis Fair Predominant Significant Unobservable Input Minimum Maximum Weighted Average [1] Impact of As of June 30, 2021 CLOs [3] $ 266 Discounted cash flows Spread 229 bps 328 bps 312 bps Decrease CMBS [3] $ 66 Discounted cash flows Spread (encompasses prepayment, default risk and loss severity) 195 bps 645 bps 326 bps Decrease Corporate [4] $ 1,051 Discounted cash flows Spread 88 bps 965 bps 275 bps Decrease RMBS [3] $ 285 Discounted cash flows Spread [6] 38 bps 259 bps 94 bps Decrease Constant prepayment rate [6] —% 12% 6% Decrease [5] Constant default rate [6] 1% 6% 3% Decrease Loss severity [6] —% 100% 70% Decrease As of December 31, 2020 CLOs [3] $ 340 Discounted cash flows Spread 304 bps 305 bps 304 bps Decrease CMBS [3] $ 20 Discounted cash flows Spread (encompasses prepayment, default risk and loss severity) 255 bps 975 bps 688 bps Decrease Corporate [4] $ 749 Discounted cash flows Spread 110 bps 692 bps 293 bps Decrease RMBS [3] $ 364 Discounted cash flows Spread [6] 7 bps 937 bps 119 bps Decrease Constant prepayment rate [6] —% 10% 5% Decrease [5] Constant default rate [6] 2% 6% 3% Decrease Loss severity [6] —% 100% 84% 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. |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Total realized/unrealized gains (losses) Fair value as of March 31, 2021 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 June 30, 2021 Assets Fixed Maturities, AFS ABS $ 6 $ — $ — $ 13 $ — $ — $ — $ (5) $ 14 CLOs 426 — — 119 (30) — — (140) 375 CMBS 61 — 2 38 (1) — 5 (19) 86 Corporate 944 1 2 176 (69) (37) 124 — 1,141 RMBS 481 — (1) 29 (57) (10) — (140) 302 Total Fixed Maturities, AFS 1,918 1 3 375 (157) (47) 129 (304) 1,918 Equity Securities, at fair value 70 2 — 3 (1) — — — 74 Short-term investments 16 — — 2 — — — — 18 Total Assets $ 2,004 $ 3 $ 3 $ 380 $ (158) $ (47) $ 129 $ (304) $ 2,010 Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Total realized/unrealized gains (losses) Fair value as of January 1, 2021 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 June 30, 2021 Assets Fixed Maturities, AFS ABS $ — $ — $ — $ 19 $ — $ — $ — $ (5) $ 14 CLOs 360 — — 259 (45) — — (199) 375 CMBS 77 — 2 39 (3) — 5 (34) 86 Corporate 881 6 (11) 249 (76) (44) 172 (36) 1,141 Foreign Govt./Govt. Agencies 6 — — — — (6) — — — RMBS 381 — (2) 180 (103) (14) — (140) 302 Total Fixed Maturities, AFS 1,705 6 (11) 746 (227) (64) 177 (414) 1,918 Equity Securities, at fair value 70 2 — 3 (1) — — — 74 Short-term investments 30 — — 2 (14) — — — 18 Total Assets $ 1,805 $ 8 $ (11) $ 751 $ (242) $ (64) $ 177 $ (414) $ 2,010 70 Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Total realized/unrealized gains (losses) Fair value as of March 31, 2020 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 June 30, 2020 Assets Fixed Maturities, AFS ABS $ 19 $ — $ — $ 23 $ — $ — $ — $ (19) $ 23 CLOs 83 — 4 19 (7) — — — 99 CMBS 18 — — 3 (1) — — — 20 Corporate 709 (22) 61 22 (28) (19) 412 (26) 1,109 Foreign Govt./Govt. Agencies 3 — — — — — — (3) — RMBS 487 — 13 21 (42) — — — 479 Total Fixed Maturities, AFS 1,319 (22) 78 88 (78) (19) 412 (48) 1,730 Equity Securities, at fair value 69 (3) — — — — — — 66 Short-term investments 14 — — — — — — — 14 Total Assets $ 1,402 $ (25) $ 78 $ 88 $ (78) $ (19) $ 412 $ (48) $ 1,810 Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Total realized/unrealized gains (losses) Fair value as of January 1, 2020 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 June 30, 2020 Assets Fixed Maturities, AFS ABS $ 15 $ — $ (1) $ 43 $ — $ — $ — $ (34) $ 23 CLOs 95 — (2) 19 (13) — — — 99 CMBS 9 — — 13 (2) — — — 20 Corporate 732 (32) (19) 116 (64) (27) 459 (56) 1,109 Foreign Govt./Govt. Agencies 3 — — — — — — (3) — RMBS 560 — (12) 26 (88) (7) — — 479 Total Fixed Maturities, AFS 1,414 (32) (34) 217 (167) (34) 459 (93) 1,730 Equity Securities, at fair value 73 (10) — 3 — — — — 66 Short-term investments 15 — — — (1) — — — 14 Total Assets $ 1,502 $ (42) $ (34) $ 220 $ (168) $ (34) $ 459 $ (93) $ 1,810 Liabilities Contingent Consideration $ (22) $ 12 $ — $ — $ 10 $ — $ — $ — $ — Derivatives, net [4] Equity (15) 36 — — (21) — — — — Total Derivatives, net [4] (15) 36 — — (21) — — — — Total Liabilities $ (37) $ 48 $ — $ — $ (11) $ — $ — $ — $ — [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 Condensed Consolidated Balance Sheets in other investments and other liabilities. Changes in Unrealized Gains (Losses) for Financial Instruments Classified as Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 2021 2020 2021 2020 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 CLOs $ — $ — $ — $ 4 $ — $ — $ — $ (2) CMBS — — 2 — — — 2 — Corporate — — 2 61 — — (8) (12) RMBS — — (1) 13 — — (2) (11) Total Fixed Maturities, AFS — — 3 78 — — (8) (25) Equity Securities, at fair value 2 (3) — — 2 (9) — — Total Assets $ 2 $ (3) $ 3 $ 78 $ 2 $ (9) $ (8) $ (25) Liabilities Contingent Consideration $ — $ — $ — $ — $ — $ 12 $ — $ — Total Liabilities $ — $ — $ — $ — $ — $ 12 $ — $ — [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. |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | Financial Assets and Liabilities Not Carried at Fair Value June 30, 2021 December 31, 2020 Fair Value Hierarchy Level Carrying Amount [1] Fair Value Fair Value Hierarchy Level Carrying Amount [1] Fair Value Assets Mortgage loans Level 3 $ 4,876 $ 5,110 Level 3 $ 4,493 $ 4,792 Liabilities Other policyholder funds and benefits payable Level 3 $ 685 $ 687 Level 3 $ 701 $ 703 Senior notes [2] Level 2 $ 3,264 $ 4,153 Level 2 $ 3,262 $ 4,363 Junior subordinated debentures [2] Level 2 $ 1,090 $ 1,121 Level 2 $ 1,090 $ 1,107 [1] As of June 30, 2021 and December 31, 2020, carrying amount of mortgage loans is net of ACL of $24 and $38, respectively. [2] Included in long-term debt in the Condensed Consolidated Balance Sheets, except for current maturities, which are included in short-term debt. |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Investments [Abstract] | |
Net Realized Capital Gains (Losses) | Net Realized Capital Gains (Losses) Three Months Ended June 30, Six Months Ended June 30, (Before tax) 2021 2020 2021 2020 Gross gains on sales $ 68 $ 96 $ 99 $ 174 Gross losses on sales (15) (22) (46) (30) Equity securities [1] 88 75 131 (311) Net credit losses on fixed maturities, AFS — (20) 4 (32) Change in ACL on mortgage loans 10 (22) 14 (24) Intent-to-sell impairments — — — (5) Other, net [2] (4) 2 25 106 Net realized capital gains (losses) $ 147 $ 109 $ 227 $ (122) [1] The net unrealized gains on equity securities included in net realized capital gains (losses) related to equity securities still held as of June 30, 2021, were $80 and $118 for the three and six months ended June 30, 2021 respectively. The net unrealized gains (losses) on equity securities included in net realized capital gains (losses) related to equity securities still held as of June 30, 2020, were $67 and $(34) for the three and six months ended June 30, 2020 respectively. [2] For the three and six months ended June 30, 2021 includes gains (losses) from transactional foreign currency revaluation of $0 and $(7) and gains (losses) on non-qualifying derivatives of $(29) and $6, respectively. For the same periods, also includes a gain of $46 on the sale of Talcott Resolution, and, an additional gain (loss) of $(19) and $(18), respectively, on the pending sale of Continental Europe Operations. For the three and six months ended June 30, 2020, includes gains (losses) from transactional foreign currency revaluation of $0 and $10, respectively. For the same periods, also includes gains (losses) on non-qualifying derivatives of $7 and $99, respectively. |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Table Text Block] | ACL on Fixed Maturities, AFS by Type Three Months Ended June 30, 2021 Three Months Ended June 30, 2020 Six Months Ended June 30, 2021 Six Months Ended June 30, 2020 (Before tax) Corporate Total Corporate Total Corporate Total Corporate Total Balance as of beginning of period $ 19 $ 19 $ 12 $ 12 $ 23 $ 23 $ — $ — Credit losses on fixed maturities where an allowance was not previously recorded — — 23 23 2 2 35 35 Reduction due to sales (15) (15) (2) (2) (15) (15) (2) (2) Net increases (decreases) on fixed maturities where an allowance was previously recorded — — (1) (1) (6) (6) (1) (1) Balance as of end of period $ 4 $ 4 $ 32 $ 32 $ 4 $ 4 $ 32 $ 32 |
Schedule of Available-for-sale Securities | Fixed Maturities, AFS, by Type June 30, 2021 December 31, 2020 Amortized Cost ACL Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost ACL Gross Unrealized Gains Gross Unrealized Losses Fair Value ABS $ 1,295 $ — $ 26 $ — $ 1,321 $ 1,525 $ — $ 39 $ — $ 1,564 CLOs 3,092 — 9 (1) 3,100 2,780 — 7 (7) 2,780 CMBS 3,853 — 250 (8) 4,095 4,219 — 286 (21) 4,484 Corporate 17,740 (4) 1,457 (32) 19,161 18,401 (23) 1,926 (31) 20,273 Foreign govt./govt. agencies 824 — 52 (3) 873 842 — 77 — 919 Municipal 8,281 — 882 (2) 9,161 8,564 — 940 (1) 9,503 RMBS 3,436 — 92 (8) 3,520 3,966 — 144 (3) 4,107 U.S. Treasuries 2,699 — 96 (3) 2,792 1,264 — 141 — 1,405 Total fixed maturities, AFS $ 41,220 $ (4) $ 2,864 $ (57) $ 44,023 $ 41,561 $ (23) $ 3,560 $ (63) $ 45,035 |
Investments by Contractual Maturity Year | Fixed Maturities, AFS, by Contractual Maturity Year June 30, 2021 December 31, 2020 Amortized Cost Fair Value Amortized Cost Fair Value One year or less $ 1,224 $ 1,241 $ 1,411 $ 1,432 Over one year through five years 7,949 8,376 7,832 8,286 Over five years through ten years 8,817 9,323 7,622 8,354 Over ten years 11,554 13,047 12,206 14,028 Subtotal 29,544 31,987 29,071 32,100 Mortgage-backed and asset-backed securities 11,676 12,036 12,490 12,935 Total fixed maturities, AFS $ 41,220 $ 44,023 $ 41,561 $ 45,035 |
Unrealized Gain (Loss) on Investments [Table Text Block] | Unrealized Loss Aging for Fixed Maturities, AFS by Type and Length of Time as of June 30, 2021 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses ABS $ 137 $ — $ — $ — $ 137 $ — CLOs 703 (1) 251 — 954 (1) CMBS 130 (1) 91 (7) 221 (8) Corporate 1,436 (23) 207 (9) 1,643 (32) Foreign govt./govt. agencies 153 (3) — — 153 (3) Municipal 263 (2) — — 263 (2) RMBS 725 (8) 6 — 731 (8) U.S. Treasuries 377 (3) — — 377 (3) Total fixed maturities, AFS in an unrealized loss position $ 3,924 $ (41) $ 555 $ (16) $ 4,479 $ (57) Unrealized Loss Aging for Fixed Maturities, AFS by Type and Length of Time as of December 31, 2020 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses ABS $ 44 $ — $ — $ — $ 44 $ — CLOs 758 (2) 715 (5) 1,473 (7) CMBS 410 (17) 19 (4) 429 (21) Corporate 466 (13) 212 (18) 678 (31) Foreign govt./govt. agencies 24 — — — 24 — Municipal 34 (1) — — 34 (1) RMBS 461 (3) 21 — 482 (3) U.S. Treasuries 39 — — — 39 — Total fixed maturities, AFS in an unrealized loss position $ 2,236 $ (36) $ 967 $ (27) $ 3,203 $ (63) |
Financing Receivable, Allowance for Credit Loss [Table Text Block] | ACL on Mortgage Loans Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 ACL as of beginning of period $ 34 $ 21 $ 38 $ — Cumulative effect of accounting changes [1] 19 Adjusted beginning ACL 34 21 38 19 Current period provision (release) (10) 22 (14) 24 ACL as of June 30, $ 24 $ 43 $ 24 $ 43 [1] Represents the adjustment to the ACL recorded on adoption of accounting guidance for credit losses on January 1, 2020. For further information, see the Financial Instruments - Credit Losses section within Note 1 - Basis of Presentation and Significant Accounting Policies, included in The Hartford's 2020 Form 10-K Annual Report. |
Loans Credit Quality | Mortgage Loans LTV & DSCR by Origination Year as of June 30, 2021 2021 2020 2019 2018 2017 2016 & Prior Total Loan-to-value Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost [1] Avg. DSCR 65% - 80% $ — —x $ 57 2.13x $ 187 1.61x $ 175 1.25x $ 45 1.75x $ 140 1.51x $ 604 1.54x Less than 65% 713 2.93x 642 2.69x 730 2.71x 428 2.22x 421 1.85x 1,362 2.51x 4,296 2.55x Total mortgage loans $ 713 2.93x $ 699 2.64x $ 917 2.49x $ 603 1.93x $ 466 1.84x $ 1,502 2.42x $ 4,900 2.42x [1] Amortized cost of mortgage loans excludes ACL of $24. Mortgage Loans LTV & DSCR by Origination Year as of December 31, 2020 2020 2019 2018 2017 2016 2015 & Prior Total Loan-to-value Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost Avg. DSCR Amortized Cost [1] Avg. DSCR 65% - 80% $ 28 1.62x $ 243 1.58x $ 212 1.33x $ 45 2.02x $ 51 1.92x $ 115 1.74x $ 694 1.59x Less than 65% 659 2.56x 676 2.85x 410 2.25x 446 1.89x 235 2.99x 1,411 3.01x 3,837 2.69x Total mortgage loans $ 687 2.52x $ 919 2.51x $ 622 1.94x $ 491 1.90x $ 286 2.80x $ 1,526 2.92x $ 4,531 2.52x [1] Amortized cost of mortgage loans excludes ACL of $38. Mortgage Loans by Region June 30, 2021 December 31, 2020 Amortized Cost Percent of Total Amortized Cost Percent of Total East North Central $ 293 6.0 % $ 290 6.4 % Middle Atlantic 289 5.9 % 291 6.4 % Mountain 345 7.0 % 254 5.6 % New England 395 8.1 % 397 8.8 % Pacific 1,196 24.4 % 1,001 22.1 % South Atlantic 1,246 25.4 % 1,038 22.9 % West North Central 44 0.9 % 44 1.0 % West South Central 373 7.6 % 433 9.5 % Other [1] 719 14.7 % 783 17.3 % Total mortgage loans 4,900 100.0 % 4,531 100.0 % ACL (24) (38) Total mortgage loans, net of ACL $ 4,876 $ 4,493 [1] Primarily represents loans collateralized by multiple properties in various regions. Mortgage Loans by Property Type June 30, 2021 December 31, 2020 Amortized Cost Percent of Total Amortized Cost Percent of Total Commercial Industrial $ 1,622 33.1 % $ 1,339 29.5 % Multifamily 1,609 32.8 % 1,498 33.1 % Office 652 13.3 % 774 17.1 % Retail [1] 901 18.4 % 788 17.4 % Single Family 76 1.6 % 92 2.0 % Other 40 0.8 % 40 0.9 % Total mortgage loans 4,900 100.0 % 4,531 100.0 % ACL (24) (38) Total mortgage loans, net of ACL $ 4,876 $ 4,493 [1] Primarily comprised of grocery-anchored retail centers, with no exposure to regional shopping malls. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 Jun. 30, 2021 Dec. 31, 2020 Jun. 30, 2021 Dec. 31, 2020 Jun. 30, 2021 Dec. 31, 2020 Jun. 30, 2021 Dec. 31, 2020 Cash flow hedges Interest rate swaps $ 2,340 $ 2,340 $ — $ — $ — $ — $ — $ — Foreign currency swaps 297 286 (4) (13) 5 3 (9) (16) Total cash flow hedges 2,637 2,626 (4) (13) 5 3 (9) (16) Non-qualifying strategies Interest rate contracts Interest rate swaps and futures 8,004 8,335 (52) (69) 5 4 (57) (73) Foreign exchange contracts Foreign currency swaps and forwards 280 269 — — — — — — Credit contracts Credit derivatives that purchase credit protection 6 6 — — — — — — Credit derivatives that assume credit risk [1] 225 675 11 21 11 21 — — Credit derivatives in offsetting positions 214 218 — — 4 5 (4) (5) Total non-qualifying strategies 8,729 9,503 (41) (48) 20 30 (61) (78) Total cash flow hedges and non-qualifying strategies $ 11,366 $ 12,129 $ (45) $ (61) $ 25 $ 33 $ (70) $ (94) Balance Sheet Location Fixed maturities, available-for-sale $ 280 $ 269 $ — $ — $ — $ — $ — $ — Other investments 1,386 9,585 14 23 17 25 (3) (2) Other liabilities 9,700 2,275 (59) (84) 8 8 (67) (92) Total derivatives $ 11,366 $ 12,129 $ (45) $ (61) $ 25 $ 33 $ (70) $ (94) [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 June 30, 2021 Other investments $ 25 $ 24 $ 14 $ (13) $ 1 $ — Other liabilities $ (70) $ (9) $ (59) $ (2) $ (58) $ (3) As of December 31, 2020 Other investments $ 33 $ 31 $ 23 $ (21) $ 1 $ 1 Other liabilities $ (94) $ (6) $ (84) $ (4) $ (83) $ (5) [1] Included in other investments in the Company's Condensed Consolidated Balance Sheets. [2] Included in other liabilities in the Company's Condensed Consolidated Balance Sheets and is limited to the net derivative payable associated with each counterparty. [3] Included in other investments in the Company's Condensed 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 Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Interest rate swaps $ (4) $ 4 $ 6 $ 36 Foreign currency swaps 7 (4) 11 24 Total $ 3 $ — $ 17 $ 60 Gain (Loss) Reclassified from AOCI into Income Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net Investment Income Interest Expense Net Investment Income Interest Expense Net Investment Income Interest Expense Net Investment Income Interest Expense Interest rate swaps $ 10 $ (3) $ 7 $ (2) $ 20 $ (5) $ 10 $ (2) Foreign currency swaps 1 — 1 — 2 — 2 — Total $ 11 $ (3) $ 8 $ (2) $ 22 $ (5) $ 12 $ (2) Total amounts presented on the Condensed Consolidated Statement of Operations $ 581 $ 57 $ 339 $ 57 $ 1,090 $ 114 $ 798 $ 121 |
Non-Qualifying Strategies Recognized within Net Realized Capital Gains (Losses) | Non-Qualifying Strategies Recognized within Net Realized Capital Gains (Losses) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Foreign exchange contracts Foreign currency swaps and forwards $ — $ — $ — $ 3 Interest rate contracts Interest rate swaps, swaptions, and futures (32) 1 — 21 Credit contracts Credit derivatives that purchase credit protection — (2) — 4 Credit derivatives that assume credit risk 3 8 6 (4) Equity contracts Equity index swaps and options — — — 75 Total [1] $ (29) $ 7 $ 6 $ 99 |
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 June 30, 2021 Single name credit default swaps Investment grade risk exposure $ 50 $ 1 5 years Corporate Credit A $ — $ — Basket credit default swaps [4] Investment grade risk exposure 100 2 5 years Corporate Credit BBB+ — — Below investment grade risk exposure 75 8 5 years Corporate Credit B+ — — Investment grade risk exposure 100 1 7 years CMBS Credit AAA 100 (1) Below investment grade risk exposure 7 (3) Less than 1 year CMBS Credit B- 7 3 Total [5] $ 332 $ 9 $ 107 $ 2 As of December 31, 2020 Single name credit default swaps Investment grade risk exposure $ 175 $ 9 5 years Corporate Credit A- $ — $ — Basket credit default swaps [4] Investment grade risk exposure 500 12 5 years Corporate Credit BBB+ — — Investment grade risk exposure 100 1 8 years CMBS Credit AAA 100 (1) Below investment grade risk exposure 9 (4) Less than 1 year CMBS Credit CCC+ 9 4 Total [5] $ 784 $ 18 $ 109 $ 3 [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. |
Premiums Receivable (Tables)
Premiums Receivable (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Credit Loss [Abstract] | |
Premium Receivable, Allowance for Credit Loss [Table Text Block] | Premiums Receivable and Agents' Balances As of June 30, 2021 As of December 31, 2020 Premiums receivable, excluding receivables for losses within a deductible and retrospectively-rated policy premiums $ 4,228 $ 3,851 Receivables for loss within a deductible and retrospectively-rated policy premiums, by credit quality: AAA — — AA 139 142 A 56 62 BBB 163 185 BB 105 115 Below BB 65 65 Total receivables for losses within a deductible and retrospectively-rated policy premiums 528 569 Total Premiums Receivable and Agents' Balances, Gross 4,756 4,420 ACL (134) (152) Total Premiums Receivable and Agents' Balances, Net of ACL $ 4,622 $ 4,268 Rollforward of ACL on Premiums Receivable and Agents' Balances for the Three Months Ended June 30, 2021 June 30, 2020 Premiums Receivable and Agents' Balances, Excluding Receivables for Loss within a Deductible and Retrospectively-Rated Policy Premiums Receivables for Loss within a Deductible and Retrospectively-Rated Policy Premiums Total Premiums Receivable and Agents' Balances, Excluding Receivables for Loss within a Deductible and Retrospectively-Rated Policy Premiums Receivables for Loss within a Deductible and Retrospectively-Rated Policy Premiums Total Beginning ACL $ 108 $ 36 $ 144 $ 98 $ 41 $ 139 Current period provision (release) 1 1 2 48 3 51 Current period write-offs (15) — (15) (8) — (8) Current period recoveries 3 — 3 1 — 1 Ending ACL $ 97 $ 37 $ 134 $ 139 $ 44 $ 183 Rollforward of ACL on Premiums Receivable and Agents' Balances for the Six Months Ended June 30, 2021 June 30, 2020 Premiums Receivable and Agents' Balances, Excluding Receivables for Loss within a Deductible and Retrospectively-Rated Policy Premiums Receivables for Loss within a Deductible and Retrospectively-Rated Policy Premiums Total Premiums Receivable and Agents' Balances, Excluding Receivables for Loss within a Deductible and Retrospectively-Rated Policy Premiums Receivables for Loss within a Deductible and Retrospectively-Rated Policy Premiums Total Beginning ACL $ 117 $ 35 $ 152 $ 85 $ 60 $ 145 Cumulative effect of accounting change [1] (2) (21) (23) Adjusted beginning ACL 117 35 152 83 39 122 Current period provision (release) 5 2 7 76 5 81 Current period write-offs (30) — (30) (23) — (23) Current period recoveries 5 — 5 3 — 3 Ending ACL $ 97 $ 37 $ 134 $ 139 $ 44 $ 183 |
Reinsurance (Tables)
Reinsurance (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance Recoverable, Credit Quality Indicator [Table Text Block] | Reinsurance Recoverables by Credit Quality Indicator As of June 30, 2021 As of December 31, 2020 Property and Casualty Group Benefits Corporate Total Property and Casualty Group Benefits Corporate Total A.M. Best Financial Strength Rating A++ $ 1,704 $ — $ — $ 1,704 $ 1,598 $ — $ — $ 1,598 A+ 1,881 239 282 2,402 1,788 230 305 2,323 A 682 — — 682 638 — — 638 A- 34 9 — 43 37 9 — 46 B++ 652 — 3 655 666 — 3 669 Below B++ 21 1 — 22 21 1 — 22 Total Rated by A.M. Best 4,974 249 285 5,508 4,748 240 308 5,296 Mandatory (Assigned) and Voluntary Risk Pools 254 — — 254 259 — — 259 Captives 306 — — 306 305 — — 305 Other not rated companies 241 7 — 248 254 5 — 259 Gross Reinsurance Recoverables 5,775 256 285 6,316 5,566 245 308 6,119 Allowance for uncollectible reinsurance (96) (1) (2) (99) (105) (1) (2) (108) Net Reinsurance Recoverables $ 5,679 $ 255 $ 283 $ 6,217 $ 5,461 $ 244 $ 306 $ 6,011 |
Reinsurance Recoverable, Allowance for Credit Loss [Table Text Block] | Allowance for Uncollectible Reinsurance for the Three Months Ended June 30, 2021 June 30, 2020 Property and Casualty Group Benefits Corporate Total Property and Casualty Group Benefits Corporate Total Beginning allowance for uncollectible reinsurance $ 95 $ 1 $ 2 $ 98 $ 114 $ 1 $ 2 $ 117 Beginning allowance for disputed amounts 56 — — 56 65 — — $ 65 Beginning ACL 39 1 2 42 49 1 2 52 Current period provision (release) 1 — — 1 1 — — 1 Current period gross recoveries — — — — 1 — — 1 Ending ACL 40 1 2 43 51 1 2 54 Ending allowance for disputed amounts 56 — — 56 57 — — 57 Ending allowance for uncollectible reinsurance $ 96 $ 1 $ 2 $ 99 $ 108 $ 1 $ 2 $ 111 Allowance for Uncollectible Reinsurance for the Six Months Ended June 30, 2021 June 30, 2020 Property and Casualty Group Benefits Corporate Total Property and Casualty Group Benefits Corporate Total Beginning allowance for uncollectible reinsurance $ 105 $ 1 $ 2 $ 108 $ 114 $ — $ — $ 114 Beginning allowance for disputed amounts 53 — — 53 66 — — $ 66 Beginning ACL 52 1 2 55 48 — — 48 Cumulative effect of accounting change [1] — 1 1 2 Adjusted beginning ACL 52 1 2 55 48 1 1 50 Current period provision (release) (12) — — (12) 2 — 1 3 Current period gross recoveries — — — — 1 — — 1 Ending ACL 40 1 2 43 51 1 2 54 Ending allowance for disputed amounts 56 — — 56 57 — — 57 Ending allowance for uncollectible reinsurance $ 96 $ 1 $ 2 $ 99 $ 108 $ 1 $ 2 $ 111 [1] Represents the adjustment to the ACL recorded on adoption of accounting guidance for credit losses on January 1, 2020. For further information, see Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements included in the Company's 2020 Form 10-K Annual Report. |
Reserve for Unpaid Losses and_2
Reserve for Unpaid Losses and Loss Adjustment Expenses (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block] | Unfavorable (Favorable) Prior Accident Year Development For the six months ended June 30, 2021 2020 Workers’ compensation $ (83) $ (38) Workers’ compensation discount accretion 18 18 General liability 307 114 Marine 1 1 Package business (46) (6) Commercial property (20) (2) Professional liability (7) 5 Bond (14) (10) Assumed reinsurance — (7) Automobile liability - Commercial Lines — 27 Automobile liability - Personal Lines (43) (21) Homeowners 1 — Catastrophes (98) (413) Uncollectible reinsurance (10) (2) Other reserve re-estimates, net 29 6 Prior accident year development before change in deferred gain 35 (328) Change in deferred gain on retroactive reinsurance included in other liabilities [1] 45 83 Total prior accident year development $ 80 $ (245) [1] The change in deferred gain for the six months ended June 30, 2021 and 2020 included $45 and $83, respectively, of adverse development on Navigators 2018 and prior accident year reserves, primarily driven by professional liability in the 2021 period and professional liability, marine, general liability, prior accident year catastrophes, and assumed reinsurance in the 2020 period. |
Property, Liability and Casualty Insurance Product Line | |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block] | Rollforward of Liabilities for Unpaid Losses and Loss Adjustment Expenses For the six months ended June 30, 2021 2020 Beginning liabilities for unpaid losses and loss adjustment expenses, gross $ 29,622 $ 28,261 Reinsurance and other recoverables 5,725 5,275 Beginning liabilities for unpaid losses and loss adjustment expenses, net 23,897 22,986 Provision for unpaid losses and loss adjustment expenses Current accident year 3,838 3,962 Prior accident year development [1] 80 (245) Total provision for unpaid losses and loss adjustment expenses 3,918 3,717 Change in deferred gain on retroactive reinsurance included in other liabilities [1] (45) (83) Payments Current accident year (864) (778) Prior accident years (2,222) (2,575) Total payments (3,086) (3,353) Foreign currency adjustment (7) (10) Ending liabilities for unpaid losses and loss adjustment expenses, net 24,677 23,257 Reinsurance and other recoverables 5,905 5,427 Ending liabilities for unpaid losses and loss adjustment expenses, gross $ 30,582 $ 28,684 [1] Prior accident year development does not include the benefit of a portion of losses ceded under the Navigators and A&E 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 two adverse development cover reinsurance agreements, refer to Adverse Development Covers discussion below. |
Group Benefits | |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block] | Rollforward of Liabilities for Unpaid Losses and Loss Adjustment Expenses For the six months ended June 30, 2021 2020 Beginning liabilities for unpaid losses and loss adjustment expenses, gross $ 8,233 $ 8,256 Reinsurance recoverables [1] 237 246 Beginning liabilities for unpaid losses and loss adjustment expenses, net 7,996 8,010 Provision for unpaid losses and loss adjustment expenses Current incurral year 2,464 2,297 Prior year's discount accretion 106 111 Prior incurral year development [2] (282) (315) Total provision for unpaid losses and loss adjustment expenses [3] 2,288 2,093 Payments Current incurral year (1,000) (871) Prior incurral years (1,414) (1,290) Total payments (2,414) (2,161) Ending liabilities for unpaid losses and loss adjustment expenses, net 7,870 7,942 Reinsurance recoverables 250 244 Ending liabilities for unpaid losses and loss adjustment expenses, gross $ 8,120 $ 8,186 [1] Includes a cumulative effect adjustment of $(1) representing an adjustment to the ACL recorded on adoption of accounting guidance for credit losses on January 1, 2020. For further information refer to 2020 10-K, Note 1 - Basis of Presentation and Significant Accounting Policies. [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. |
Reserves for Future Policy Bene
Reserves for Future Policy Benefits (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Insurance Loss Reserves [Abstract] | |
Changes in Reserves for Future Policy Benefits | Changes in Reserves for Future Policy Benefits[1] For the six months ended June 30, 2021 2020 Beginning liability balance $ 638 $ 635 Incurred 33 53 Paid (54) (42) Change in unrealized investment gains and losses (6) 6 Ending liability balance $ 611 $ 652 Ending reinsurance recoverable asset $ 24 $ 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. |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Tax Rate Reconciliation | Income Tax Rate Reconciliation Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Tax provision at U.S. federal statutory rate $ 233 $ 125 $ 297 $ 197 Tax-exempt interest (10) (12) (21) (24) Increase in deferred tax valuation allowance 6 7 7 13 Sale of business (5) — (5) — Tax law change (7) — (7) — Other (12) 4 (12) 9 Provision for income taxes $ 205 $ 124 $ 259 $ 195 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income Loss (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Changes in AOCI, net of tax | Changes in AOCI, Net of Tax for the Three Months Ended June 30, 2021 Changes in Net Unrealized Gain on Fixed Maturities Unrealized Loss on Fixed Maturities with ACL Net Gain on Cash Flow Hedging Instruments Foreign Currency Translation Adjustments Pension and Other Postretirement Plan Adjustments AOCI, Beginning balance $ 1,909 $ (2) $ 17 $ 44 $ (1,704) $ 264 OCI before reclassifications 337 — 1 2 (1) 339 Amounts reclassified from AOCI (42) — (6) — 15 (33) OCI, net of tax 295 — (5) 2 14 306 Ending balance $ 2,204 $ (2) $ 12 $ 46 $ (1,690) $ 570 Changes in AOCI, Net of Tax for the Six Months Ended June 30, 2021 Changes in Net Unrealized Gain on Fixed Maturities Unrealized Loss on Fixed Maturities with ACL Net Gain on Cash Flow Hedging Instruments Foreign Currency Translation Adjustments Pension and Other Postretirement Plan Adjustments AOCI, Beginning balance $ 2,834 $ (2) $ 12 $ 43 $ (1,717) $ 1,170 OCI before reclassifications (585) — 13 3 (1) (570) Amounts reclassified from AOCI (45) — (13) — 28 (30) OCI, net of tax (630) — — 3 27 (600) Ending balance $ 2,204 $ (2) $ 12 $ 46 $ (1,690) $ 570 Changes in AOCI, Net of Tax for the Three Months Ended June 30, 2020 Changes in Net Unrealized Gain on Fixed Maturities Net Unrealized Loss on Fixed Maturities with ACL Net Gain on Cash Flow Hedging Instruments Foreign Currency Translation Adjustments Pension and Other Postretirement Plan Adjustments AOCI, Beginning balance $ 627 $ (2) $ 53 $ 26 $ (1,661) $ (957) OCI before reclassifications 1,469 — — 1 — 1,470 Amounts reclassified from AOCI (41) — (5) — 12 (34) OCI, net of tax 1,428 — (5) 1 12 1,436 Ending balance $ 2,055 $ (2) $ 48 $ 27 $ (1,649) $ 479 Changes in AOCI, Net of Tax for the Six Months Ended June 30, 2020 Changes in Net Unrealized Gain on Fixed Maturities Net Unrealized Loss on Fixed Maturities with ACL Net Gain on Cash Flow Hedging Instruments Foreign Currency Translation Adjustments Pension and Other Postretirement Plan Adjustments AOCI, net of tax Beginning balance $ 1,684 $ (3) $ 9 $ 34 $ (1,672) $ 52 OCI before reclassifications 454 1 47 (7) (1) 494 Amounts reclassified from AOCI (83) — (8) — 24 (67) OCI, net of tax 371 1 39 (7) 23 427 Ending balance $ 2,055 $ (2) $ 48 $ 27 $ (1,649) $ 479 |
Reclassifications from AOCI | Reclassifications from AOCI Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Affected Line Item in the Condensed Consolidated Statement of Operations Net Unrealized Gain on Fixed Maturities Available-for-sale fixed maturities $ 53 $ 57 Net realized capital gains (losses) 53 57 Total before tax 11 12 Income tax expense $ 42 $ 45 Net income Net Gains on Cash Flow Hedging Instruments Interest rate swaps $ 10 20 Net investment income Interest rate swaps (3) (5) Interest expense Foreign currency swaps 1 2 Net investment income 8 17 Total before tax 2 4 Income tax expense $ 6 $ 13 Net income Pension and Other Postretirement Plan Adjustments Amortization of prior service credit $ 1 $ 3 Insurance operating costs and other expenses Amortization of actuarial loss (20) (39) Insurance operating costs and other expenses (19) (36) Total before tax (4) (8) Income tax expense $ (15) $ (28) Net income Total amounts reclassified from AOCI $ 33 $ 30 Net income Reclassifications from AOCI Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Affected Line Item in the Condensed Consolidated Statement of Operations Net Unrealized Gain on Fixed Maturities Available-for-sale fixed maturities $ 52 $ 105 Net realized capital gains (losses) 52 105 Total before tax 11 22 Income tax expense $ 41 $ 83 Net income Net Gains on Cash Flow Hedging Instruments Interest rate swaps $ 7 10 Net investment income Interest rate swaps (2) (2) Interest expense Foreign currency swaps 1 2 Net investment income 6 10 Total before tax 1 2 Income tax expense $ 5 $ 8 Net income Pension and Other Postretirement Plan Adjustments Amortization of prior service credit $ 1 $ 3 Insurance operating costs and other expenses Amortization of actuarial loss (16) (33) Insurance operating costs and other expenses (15) (30) Total before tax (3) (6) Income tax expense $ (12) $ (24) Net income Total amounts reclassified from AOCI $ 34 $ 67 Net income |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | Net Periodic Cost (Benefit) Pension Benefits Other Postretirement Benefits Three Months Ended June 30, Six Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 2021 2020 2021 2020 Service cost $ 1 $ 1 $ 2 $ 2 $ — $ — $ — $ — Interest cost 23 32 47 64 1 1 2 3 Expected return on plan assets (51) (54) (102) (108) (1) (1) (2) (2) Amortization of prior service credit — — — — (1) (1) (3) (3) Amortization of actuarial loss 18 15 35 30 2 1 4 3 Net periodic cost (benefit) $ (9) $ (6) $ (18) $ (12) $ 1 $ — $ 1 $ 1 |
Restructuring and Related Act_2
Restructuring and Related Activities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | Restructuring and Other Costs, Before Tax Incurred in the Three Months Ended June 30, 2021 Incurred in the Six Months Ended June 30, 2021 Cumulative Incurred Through June 30, 2021 Total Amount Expected to be Incurred Severance benefits $ (9) $ (9) $ 64 $ 64 IT costs 2 4 6 27 Professional fees and other expenses 7 16 45 61 Total restructuring and other costs, before tax $ — $ 11 $ 115 $ 152 |
Schedule of Restructuring Reserve by Type of Cost | Accrued Restructuring and Other Costs Six Months Ended June 30, 2021 Severance Benefits and Related Costs IT Costs Professional Fees and Other Total Restructuring and Other Costs Liability Balance, beginning of period $ 54 $ — $ — $ 54 Incurred (9) 4 16 11 Payments (8) (4) (15) (27) Balance, end of period $ 37 $ — $ 1 $ 38 |
Business Dispositions - Additio
Business Dispositions - Additional Information (Details) - Continental Europe Operations [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal Group, Including Discontinued Operation, Consideration | $ 12 | $ 12 | $ 12 | $ 14 |
Net realized capital gains | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain (Loss) on Disposition of Business | $ 19 | $ 18 | $ (66) |
Business Dispositions - Carryin
Business Dispositions - Carrying Value of Assets and Liabilities to be Transferred in Sale (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets held for sale | $ 180 | $ 177 |
Disposal Group, Including Discontinued Operation, Liabilities, Total | 164 | 158 |
Continental Europe Operations [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposal Group, Including Discontinued Operation, Cash and Cash Equivalents | 156 | 142 |
Disposal Group, Including Discontinued Operation, Other Assets | 24 | 35 |
Assets held for sale | 180 | 177 |
Disposal Group, Including Discontinued Operation, Unpaid losses and loss adjustment expenses | 76 | 84 |
Disposal Group, Including Discontinued Operation, Deferred Revenue | 22 | 31 |
Disposal Group, Including Discontinued Operation, Other Liabilities | 66 | 43 |
Disposal Group, Including Discontinued Operation, Liabilities, Total | 164 | 158 |
Disposal Group, Including Discontinued Operation, Consideration | 12 | 14 |
Continental Europe Operations [Member] | Fair Value, Recurring [Member] | Fixed Maturities and Short-Term Investments [Member] | Available-for-sale Securities [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 81 | 84 |
Continental Europe Operations [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Recurring [Member] | Fixed Maturities and Short-Term Investments [Member] | Available-for-sale Securities [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 0 | 1 |
Continental Europe Operations [Member] | Significant Observable Inputs (Level 2) | Fair Value, Recurring [Member] | Fixed Maturities and Short-Term Investments [Member] | Available-for-sale Securities [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 81 | 83 |
Continental Europe Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Fixed Maturities and Short-Term Investments [Member] | Available-for-sale Securities [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | $ 69 | $ 70 |
Earnings (Loss) Per Common Sh_2
Earnings (Loss) Per Common Share - Computation of Basic and Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings | ||||
Net income | $ 905 | $ 468 | $ 1,154 | $ 741 |
Less: Preferred stock dividends | 5 | 5 | 10 | 10 |
Net income available to common stockholders | $ 900 | $ 463 | $ 1,144 | $ 731 |
Shares | ||||
Weighted average common shares outstanding, basic | 353.7 | 358.1 | 356 | 358.3 |
Dilutive effect of stock-based awards under compensation plans | 4.8 | 1.2 | 4.4 | 1.9 |
Weighted average common shares outstanding and dilutive potential common shares | 358.5 | 359.3 | 360.4 | 360.2 |
Earnings Per Share, Basic [Abstract] | ||||
Net income available to common stockholders | $ 2.54 | $ 1.29 | $ 3.21 | $ 2.04 |
Earnings Per Share, Diluted [Abstract] | ||||
Net income available to common stockholders | $ 2.51 | $ 1.29 | $ 3.17 | $ 2.03 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2021 | |
Statement of Financial Position [Abstract] | |
Number of Reportable Segments | 5 |
Segment Information - Net Incom
Segment Information - Net Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Net income | $ 905 | $ 468 | $ 1,154 | $ 741 |
Preferred stock dividends | 5 | 5 | 10 | 10 |
Net income available to common stockholders | 900 | 463 | 1,144 | 731 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Net income | (21) | 18 | (79) | (73) |
Commercial Lines | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net income | 569 | (66) | 698 | 55 |
Personal Lines | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net income | 118 | 371 | 253 | 469 |
Property & Casualty Other Operations | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net income | 17 | 5 | 4 | 10 |
Group Benefits | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net income | 170 | 101 | 179 | 205 |
Hartford Funds | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net income | $ 52 | $ 39 | $ 99 | $ 75 |
Segment Information - Revenues
Segment Information - Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | $ 4,835 | $ 4,532 | $ 9,533 | $ 9,243 |
Net investment income | 581 | 339 | 1,090 | 798 |
Net realized capital gains (losses) | 147 | 109 | 227 | (122) |
Other revenues | 26 | 88 | 38 | 105 |
Total revenues | 5,589 | 5,068 | 10,888 | 10,024 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | 14 | 17 | 26 | 34 |
Commercial Lines | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | 2,352 | 2,162 | 4,596 | 4,435 |
Commercial Lines | Operating Segments [Member] | Workers’ compensation | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | 768 | 720 | 1,506 | 1,536 |
Commercial Lines | Operating Segments [Member] | Liability | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | 402 | 337 | 777 | 680 |
Commercial Lines | Operating Segments [Member] | Marine | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | 57 | 67 | 115 | 132 |
Commercial Lines | Operating Segments [Member] | Package business | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | 409 | 383 | 802 | 760 |
Commercial Lines | Operating Segments [Member] | Property | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | 205 | 185 | 405 | 390 |
Commercial Lines | Operating Segments [Member] | Professional liability | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | 158 | 149 | 313 | 292 |
Commercial Lines | Operating Segments [Member] | Bond | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | 71 | 68 | 140 | 138 |
Commercial Lines | Operating Segments [Member] | Assumed reinsurance | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | 84 | 72 | 152 | 138 |
Commercial Lines | Operating Segments [Member] | Automobile | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | 198 | 181 | 386 | 369 |
Personal Lines | AARP Members [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | 682 | 633 | 1,360 | 1,340 |
Personal Lines | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | 746 | 703 | 1,488 | 1,486 |
Personal Lines | Operating Segments [Member] | Property | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | 231 | 241 | 461 | 481 |
Personal Lines | Operating Segments [Member] | Automobile | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | 515 | 462 | 1,027 | 1,005 |
Group Benefits | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | 1,427 | 1,423 | 2,845 | 2,814 |
Group Benefits | Operating Segments [Member] | Group disability | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | 744 | 719 | 1,483 | 1,445 |
Group Benefits | Operating Segments [Member] | Group life | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | 604 | 632 | 1,206 | 1,239 |
Group Benefits | Operating Segments [Member] | Other | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | 79 | 72 | 156 | 130 |
Hartford Funds | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | 296 | 227 | 578 | 474 |
Hartford Funds | Operating Segments [Member] | Mutual fund and Exchange-Traded Products ("ETP") | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | 272 | 207 | 531 | 432 |
Hartford Funds | Operating Segments [Member] | Talcott Resolution life and annuity separate accounts [2] | ||||
Segment Reporting Information [Line Items] | ||||
Earned premiums and fee income | $ 24 | $ 20 | $ 47 | $ 42 |
Segment Information - Non-insur
Segment Information - Non-insurance Revenue from Customers (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Insurance Commissions and Fees | $ 375 | $ 298 | $ 730 | $ 618 |
Other revenues | 26 | 88 | 38 | 105 |
Non-insurance revenues with customers | 396 | 319 | 770 | 660 |
Installment billing fees [Member] | Operating Segments [Member] | Commercial Lines | ||||
Segment Reporting Information [Line Items] | ||||
Insurance Commissions and Fees | 8 | 5 | 17 | 13 |
Installment billing fees [Member] | Operating Segments [Member] | Personal Lines | ||||
Segment Reporting Information [Line Items] | ||||
Insurance Commissions and Fees | 8 | 9 | 16 | 18 |
Insurance servicing revenues | Operating Segments [Member] | Personal Lines | ||||
Segment Reporting Information [Line Items] | ||||
Other revenues | 21 | 21 | 40 | 40 |
Administrative services | Operating Segments [Member] | Group Benefits | ||||
Segment Reporting Information [Line Items] | ||||
Insurance Commissions and Fees | 49 | 45 | 93 | 88 |
Advisor, distribution and other management fees | Operating Segments [Member] | Hartford Funds | ||||
Segment Reporting Information [Line Items] | ||||
Insurance Commissions and Fees | 270 | 207 | 527 | 431 |
Other fees | Operating Segments [Member] | Hartford Funds | ||||
Segment Reporting Information [Line Items] | ||||
Insurance Commissions and Fees | 26 | 20 | 51 | 43 |
Investment management and other fees | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Insurance Commissions and Fees | 14 | 12 | 26 | 25 |
Transition service revenues | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Other revenues | $ 0 | $ 0 | $ 0 | $ 2 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value by Hierarchy (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | $ 44,023 | $ 45,035 |
Equity securities, at fair value | 1,693 | 1,438 |
Derivative assets | 14 | 23 |
Short-term investments | 3,398 | 3,283 |
Total assets accounted for at fair value on a recurring basis | 49,128 | 49,779 |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | (59) | (84) |
Total liabilities accounted for at fair value on a recurring basis | (59) | (84) |
Credit derivatives | ||
Assets accounted for at fair value on a recurring basis | ||
Derivative assets | 13 | 21 |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | (2) | |
Foreign exchange derivatives | ||
Assets accounted for at fair value on a recurring basis | ||
Derivative assets | 1 | |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | (4) | (14) |
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 | (53) | (70) |
Asset backed securities ("ABS") | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 1,321 | 1,564 |
Collateralized Loan Obligations [Member] | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 3,100 | 2,780 |
CMBS | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 4,095 | 4,484 |
Corporate | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 19,161 | 20,273 |
Foreign government/government agencies | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 873 | 919 |
Municipal | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 9,161 | 9,503 |
RMBS | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 3,520 | 4,107 |
U.S. Treasuries | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 2,792 | 1,405 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 250 | 529 |
Equity securities, at fair value | 1,061 | 872 |
Derivative assets | 0 | 0 |
Short-term investments | 2,204 | 2,663 |
Total assets accounted for at fair value on a recurring basis | 3,515 | 4,064 |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | 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 | |
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 | ||
Debt Securities, Available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Collateralized Loan Obligations [Member] | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | CMBS | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 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 | ||
Debt Securities, Available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | RMBS | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 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 | ||
Debt Securities, Available-for-sale | 250 | 529 |
Significant Observable Inputs (Level 2) | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 41,855 | 42,801 |
Equity securities, at fair value | 558 | 496 |
Derivative assets | 14 | 23 |
Short-term investments | 1,176 | 590 |
Total assets accounted for at fair value on a recurring basis | 43,603 | 43,910 |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | (59) | (84) |
Total liabilities accounted for at fair value on a recurring basis | (59) | (84) |
Significant Observable Inputs (Level 2) | Credit derivatives | ||
Assets accounted for at fair value on a recurring basis | ||
Derivative assets | 13 | 21 |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | (2) | |
Significant Observable Inputs (Level 2) | Foreign exchange derivatives | ||
Assets accounted for at fair value on a recurring basis | ||
Derivative assets | 1 | |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | (4) | (14) |
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 | (53) | (70) |
Significant Observable Inputs (Level 2) | Asset backed securities ("ABS") | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 1,307 | 1,564 |
Significant Observable Inputs (Level 2) | Collateralized Loan Obligations [Member] | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 2,725 | 2,420 |
Significant Observable Inputs (Level 2) | CMBS | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 4,009 | 4,407 |
Significant Observable Inputs (Level 2) | Corporate | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 18,020 | 19,392 |
Significant Observable Inputs (Level 2) | Foreign government/government agencies | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 873 | 913 |
Significant Observable Inputs (Level 2) | Municipal | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 9,161 | 9,503 |
Significant Observable Inputs (Level 2) | RMBS | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 3,218 | 3,726 |
Significant Observable Inputs (Level 2) | U.S. Treasuries | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 2,542 | 876 |
Significant Unobservable Inputs (Level 3) | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 1,918 | 1,705 |
Equity securities, at fair value | 74 | 70 |
Derivative assets | 0 | 0 |
Short-term investments | 18 | 30 |
Total assets accounted for at fair value on a recurring basis | 2,010 | 1,805 |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | 0 | 0 |
Total liabilities accounted for at fair value on a recurring basis | 0 | 0 |
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 | |
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 | 0 |
Significant Unobservable Inputs (Level 3) | Asset backed securities ("ABS") | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 14 | 0 |
Significant Unobservable Inputs (Level 3) | Collateralized Loan Obligations [Member] | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 375 | 360 |
Significant Unobservable Inputs (Level 3) | CMBS | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 86 | 77 |
Significant Unobservable Inputs (Level 3) | Corporate | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 1,141 | 881 |
Significant Unobservable Inputs (Level 3) | Foreign government/government agencies | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 0 | 6 |
Significant Unobservable Inputs (Level 3) | Municipal | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | RMBS | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 302 | 381 |
Significant Unobservable Inputs (Level 3) | U.S. Treasuries | ||
Assets accounted for at fair value on a recurring basis | ||
Debt Securities, Available-for-sale | 0 | 0 |
Fair Value Measured at Net Asset Value Per Share [Member] | ||
Liabilities accounted for at fair value on a recurring basis | ||
Deposit Assets | $ 57 | $ 54 |
Fair Value Measurements - Signi
Fair Value Measurements - Significant Unobservable Inputs Securities (Details) $ in Millions | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale | $ 44,023 | $ 45,035 |
Collateralized Loan Obligations [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale | 3,100 | 2,780 |
CMBS | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale | 4,095 | 4,484 |
Corporate | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale | 19,161 | 20,273 |
RMBS | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale | 3,520 | 4,107 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale | 1,918 | 1,705 |
Significant Unobservable Inputs (Level 3) | Collateralized Loan Obligations [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale | 375 | 360 |
Significant Unobservable Inputs (Level 3) | CMBS | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale | 86 | 77 |
Significant Unobservable Inputs (Level 3) | Corporate | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale | 1,141 | 881 |
Significant Unobservable Inputs (Level 3) | RMBS | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale | 302 | 381 |
Fair Value, Recurring [Member] | Significant Unobservable Inputs (Level 3) | Collateralized Loan Obligations [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale | $ 266 | $ 340 |
Fair Value, Recurring [Member] | Significant Unobservable Inputs (Level 3) | Collateralized Loan Obligations [Member] | Measurement Input, Credit Spread [Member] | Minimum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 2.29 | 3.04 |
Fair Value, Recurring [Member] | Significant Unobservable Inputs (Level 3) | Collateralized Loan Obligations [Member] | Measurement Input, Credit Spread [Member] | Maximum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 3.28 | 3.05 |
Fair Value, Recurring [Member] | Significant Unobservable Inputs (Level 3) | Collateralized Loan Obligations [Member] | Measurement Input, Credit Spread [Member] | Weighted Average [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 3.12 | 3.04 |
Fair Value, Recurring [Member] | Significant Unobservable Inputs (Level 3) | CMBS | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale | $ 66 | $ 20 |
Fair Value, Recurring [Member] | Significant Unobservable Inputs (Level 3) | CMBS | Measurement Input, Credit Spread [Member] | Minimum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 1.95 | 2.55 |
Fair Value, Recurring [Member] | Significant Unobservable Inputs (Level 3) | CMBS | Measurement Input, Credit Spread [Member] | Maximum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 6.45 | 9.75 |
Fair Value, Recurring [Member] | Significant Unobservable Inputs (Level 3) | CMBS | Measurement Input, Credit Spread [Member] | Weighted Average [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 3.26 | 6.88 |
Fair Value, Recurring [Member] | Significant Unobservable Inputs (Level 3) | Corporate | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale | $ 1,051 | $ 749 |
Fair Value, Recurring [Member] | Significant Unobservable Inputs (Level 3) | Corporate | Measurement Input, Credit Spread [Member] | Minimum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 0.88 | 1.10 |
Fair Value, Recurring [Member] | Significant Unobservable Inputs (Level 3) | Corporate | Measurement Input, Credit Spread [Member] | Maximum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 9.65 | 6.92 |
Fair Value, Recurring [Member] | Significant Unobservable Inputs (Level 3) | Corporate | Measurement Input, Credit Spread [Member] | Weighted Average [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 2.75 | 2.93 |
Fair Value, Recurring [Member] | Significant Unobservable Inputs (Level 3) | RMBS | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale | $ 285 | $ 364 |
Fair Value, Recurring [Member] | Significant Unobservable Inputs (Level 3) | RMBS | Measurement Input, Credit Spread [Member] | Minimum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 0.38 | 0.07 |
Fair Value, Recurring [Member] | Significant Unobservable Inputs (Level 3) | RMBS | Measurement Input, Credit Spread [Member] | Maximum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 2.59 | 9.37 |
Fair Value, Recurring [Member] | Significant Unobservable Inputs (Level 3) | RMBS | Measurement Input, Credit Spread [Member] | Weighted Average [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 0.94 | 1.19 |
Fair Value, Recurring [Member] | Significant Unobservable Inputs (Level 3) | RMBS | Measurement Input, Constant Prepayment Rate [Member] | Minimum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 0 | 0 |
Fair Value, Recurring [Member] | Significant Unobservable Inputs (Level 3) | RMBS | Measurement Input, Constant Prepayment Rate [Member] | Maximum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 0.12 | 0.10 |
Fair Value, Recurring [Member] | Significant Unobservable Inputs (Level 3) | RMBS | Measurement Input, Constant Prepayment Rate [Member] | Weighted Average [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 0.06 | 0.05 |
Fair Value, Recurring [Member] | Significant Unobservable Inputs (Level 3) | RMBS | Measurement Input, Default Rate [Member] | Minimum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 0.01 | 0.02 |
Fair Value, Recurring [Member] | Significant Unobservable Inputs (Level 3) | RMBS | Measurement Input, Default Rate [Member] | Maximum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 0.06 | 0.06 |
Fair Value, Recurring [Member] | Significant Unobservable Inputs (Level 3) | RMBS | Measurement Input, Default Rate [Member] | Weighted Average [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 0.03 | 0.03 |
Fair Value, Recurring [Member] | Significant Unobservable Inputs (Level 3) | RMBS | Measurement Input, Loss Severity [Member] | Minimum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 0 | 0 |
Fair Value, Recurring [Member] | Significant Unobservable Inputs (Level 3) | RMBS | Measurement Input, Loss Severity [Member] | Maximum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 1 | 1 |
Fair Value, Recurring [Member] | Significant Unobservable Inputs (Level 3) | RMBS | Measurement Input, Loss Severity [Member] | Weighted Average [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 0.70 | 0.84 |
Fair Value Measurements - Sig_2
Fair Value Measurements - Significant Unobservable Inputs Freestanding Derivatives (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Adjustment Resulting from Broker Prices Received | $ 0 | |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Derivative Assets (Liabilities), at Fair Value, Net | $ 1 | $ 1 |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value Recurring Basis, Unobservable Input (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Freestanding Derivatives, net | ||||
Sales | $ 0 | |||
Transfers into level 3 | 0 | |||
Transfers out of level 3 | 0 | |||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||||
Assets | ||||
Beginning balance | $ 2,004 | $ 1,402 | $ 1,805 | 1,502 |
Total realized/unrealized gains (losses), Included in net income | 3 | (25) | 8 | (42) |
Total realized/unrealized gains (losses), Included in OCI | 3 | 78 | (11) | (34) |
Purchases | 380 | 88 | 751 | 220 |
Settlements | (158) | (78) | (242) | (168) |
Sales | (47) | (19) | (64) | (34) |
Transfers into Level 3 | 129 | 412 | 177 | 459 |
Transfers out of Level 3 | (304) | (48) | (414) | (93) |
Ending balance | 2,010 | 1,810 | 2,010 | 1,810 |
Liabilities | ||||
Changes in Unrealized Gain/(Loss) Included in Net Income, Liabilities | 0 | 0 | 0 | 12 |
Freestanding Derivatives, net | ||||
Beginning balance | 15 | |||
Realized/unrealized gain/loss included in net income, liabilities | 36 | |||
Realized/unrealized gain/loss included in OCI, liabilities | 0 | |||
Purchases | 0 | |||
Ending balance | 0 | 0 | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Other liabilities | ||||
Freestanding Derivatives, net | ||||
Settlements | (21) | |||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Equity | ||||
Freestanding Derivatives, net | ||||
Beginning balance | 15 | |||
Realized/unrealized gain/loss included in net income, liabilities | 36 | |||
Realized/unrealized gain/loss included in OCI, liabilities | 0 | |||
Purchases | 0 | |||
Settlements | (21) | |||
Sales | 0 | |||
Transfers into level 3 | 0 | |||
Transfers out of level 3 | 0 | |||
Ending balance | 0 | 0 | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Contingent Consideration | ||||
Liabilities | ||||
Beginning balance | (22) | |||
Changes in Unrealized Gain/(Loss) Included in Net Income, Liabilities | 0 | 0 | 0 | 12 |
Total realized/unrealized gains (losses), Included in OCI | 0 | |||
Purchases | 0 | |||
Settlements | 10 | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Sales | 0 | |||
Transfers into Level 3 | 0 | |||
Transfers out of Level 3 | 0 | |||
Ending balance | 0 | 0 | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Liability [Member] | ||||
Liabilities | ||||
Beginning balance | (37) | |||
Changes in Unrealized Gain/(Loss) Included in Net Income, Liabilities | 48 | |||
Total realized/unrealized gains (losses), Included in OCI | 0 | |||
Purchases | 0 | |||
Settlements | (11) | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Sales | 0 | |||
Transfers into Level 3 | 0 | |||
Transfers out of Level 3 | 0 | |||
Ending balance | 0 | 0 | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Equity Securities, at fair value | ||||
Assets | ||||
Beginning balance | 70 | 69 | 70 | 73 |
Total realized/unrealized gains (losses), Included in net income | 2 | (3) | 2 | (10) |
Total realized/unrealized gains (losses), Included in OCI | 0 | 0 | 0 | 0 |
Purchases | 3 | 0 | 3 | 3 |
Settlements | (1) | 0 | (1) | 0 |
Sales | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Ending balance | 74 | 66 | 74 | 66 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Short-term investments | ||||
Assets | ||||
Beginning balance | 16 | 14 | 30 | 15 |
Total realized/unrealized gains (losses), Included in net income | 0 | 0 | 0 | 0 |
Total realized/unrealized gains (losses), Included in OCI | 0 | 0 | 0 | 0 |
Purchases | 2 | 0 | 2 | 0 |
Settlements | 0 | 0 | (14) | (1) |
Sales | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Ending balance | 18 | 14 | 18 | 14 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Securities available-for-sale and other | Total Fixed Maturities, AFS | ||||
Assets | ||||
Beginning balance | 1,918 | 1,319 | 1,705 | 1,414 |
Total realized/unrealized gains (losses), Included in net income | 1 | (22) | 6 | (32) |
Total realized/unrealized gains (losses), Included in OCI | 3 | 78 | (11) | (34) |
Purchases | 375 | 88 | 746 | 217 |
Settlements | (157) | (78) | (227) | (167) |
Sales | (47) | (19) | (64) | (34) |
Transfers into Level 3 | 129 | 412 | 177 | 459 |
Transfers out of Level 3 | (304) | (48) | (414) | (93) |
Ending balance | 1,918 | 1,730 | 1,918 | 1,730 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Securities available-for-sale and other | ABS | Total Fixed Maturities, AFS | ||||
Assets | ||||
Beginning balance | 6 | 19 | 0 | 15 |
Total realized/unrealized gains (losses), Included in net income | 0 | 0 | 0 | 0 |
Total realized/unrealized gains (losses), Included in OCI | 0 | 0 | 0 | (1) |
Purchases | 13 | 23 | 19 | 43 |
Settlements | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | (5) | (19) | (5) | (34) |
Ending balance | 14 | 23 | 14 | 23 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Securities available-for-sale and other | Collateralized Loan Obligations [Member] | Total Fixed Maturities, AFS | ||||
Assets | ||||
Beginning balance | 426 | 83 | 360 | 95 |
Total realized/unrealized gains (losses), Included in net income | 0 | 0 | 0 | 0 |
Total realized/unrealized gains (losses), Included in OCI | 0 | 4 | 0 | (2) |
Purchases | 119 | 19 | 259 | 19 |
Settlements | (30) | (7) | (45) | (13) |
Sales | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | (140) | 0 | (199) | 0 |
Ending balance | 375 | 99 | 375 | 99 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Securities available-for-sale and other | CMBS | Total Fixed Maturities, AFS | ||||
Assets | ||||
Beginning balance | 61 | 18 | 77 | 9 |
Total realized/unrealized gains (losses), Included in net income | 0 | 0 | 0 | 0 |
Total realized/unrealized gains (losses), Included in OCI | 2 | 0 | 2 | 0 |
Purchases | 38 | 3 | 39 | 13 |
Settlements | (1) | (1) | (3) | (2) |
Sales | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 5 | 0 | 5 | 0 |
Transfers out of Level 3 | (19) | 0 | (34) | 0 |
Ending balance | 86 | 20 | 86 | 20 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Securities available-for-sale and other | Corporate | Total Fixed Maturities, AFS | ||||
Assets | ||||
Beginning balance | 944 | 709 | 881 | 732 |
Total realized/unrealized gains (losses), Included in net income | 1 | (22) | 6 | (32) |
Total realized/unrealized gains (losses), Included in OCI | 2 | 61 | (11) | (19) |
Purchases | 176 | 22 | 249 | 116 |
Settlements | (69) | (28) | (76) | (64) |
Sales | (37) | (19) | (44) | (27) |
Transfers into Level 3 | 124 | 412 | 172 | 459 |
Transfers out of Level 3 | 0 | (26) | (36) | (56) |
Ending balance | 1,141 | 1,109 | 1,141 | 1,109 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Securities available-for-sale and other | Foreign government/government agencies | Total Fixed Maturities, AFS | ||||
Assets | ||||
Beginning balance | 3 | 6 | 3 | |
Total realized/unrealized gains (losses), Included in net income | 0 | 0 | 0 | |
Total realized/unrealized gains (losses), Included in OCI | 0 | 0 | 0 | |
Purchases | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | |
Sales | 0 | (6) | 0 | |
Transfers into Level 3 | 0 | 0 | 0 | |
Transfers out of Level 3 | (3) | 0 | (3) | |
Ending balance | 0 | 0 | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Securities available-for-sale and other | RMBS | Total Fixed Maturities, AFS | ||||
Assets | ||||
Beginning balance | 481 | 487 | 381 | 560 |
Total realized/unrealized gains (losses), Included in net income | 0 | 0 | 0 | 0 |
Total realized/unrealized gains (losses), Included in OCI | (1) | 13 | (2) | (12) |
Purchases | 29 | 21 | 180 | 26 |
Settlements | (57) | (42) | (103) | (88) |
Sales | (10) | 0 | (14) | (7) |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | (140) | 0 | (140) | 0 |
Ending balance | $ 302 | $ 479 | $ 302 | $ 479 |
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) - Fair Value, Recurring [Member] - Significant Unobservable Inputs (Level 3) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | $ 2 | $ (3) | $ 2 | $ (9) |
Changes in Unrealized Gain/(Loss) Included in Net Income, Liabilities | 0 | 0 | 0 | 12 |
Contingent Consideration | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Changes in Unrealized Gain/(Loss) Included in Net Income, Liabilities | 0 | 0 | 0 | 12 |
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 | 3 | 78 | (8) | (25) |
Changes in Unrealized Gain/(Loss) Included in Net Income, Liabilities | 0 | 0 | 0 | 0 |
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 | 0 | 0 | 0 | 0 |
Equity Securities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | 2 | (3) | 2 | (9) |
Equity Securities [Member] | 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 | 0 | 0 | 0 | 0 |
Total Fixed Maturities, AFS | Securities available-for-sale and other | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | 0 | 0 | 0 | 0 |
Total Fixed Maturities, AFS | Securities available-for-sale and other | 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 | 3 | 78 | (8) | (25) |
Total Fixed Maturities, AFS | Collateralized Loan Obligations [Member] | Securities available-for-sale and other | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | 0 | 0 | 0 | 0 |
Total Fixed Maturities, AFS | Collateralized Loan Obligations [Member] | Securities available-for-sale and other | 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 | 0 | 4 | 0 | (2) |
Total Fixed Maturities, AFS | CMBS | Securities available-for-sale and other | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | 0 | 0 | 0 | 0 |
Total Fixed Maturities, AFS | CMBS | Securities available-for-sale and other | 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 | 2 | 0 | 2 | 0 |
Total Fixed Maturities, AFS | Corporate | Securities available-for-sale and other | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | 0 | 0 | 0 | 0 |
Total Fixed Maturities, AFS | Corporate | Securities available-for-sale and other | 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 | 2 | 61 | (8) | (12) |
Total Fixed Maturities, AFS | RMBS | Securities available-for-sale and other | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | 0 | 0 | 0 | 0 |
Total Fixed Maturities, AFS | RMBS | Securities available-for-sale and other | 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 | $ (1) | $ 13 | $ (2) | $ (11) |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments Not Carried at Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Assets, carrying value | $ 74,732 | $ 74,111 | ||||
Assets, fair value | 49,128 | 49,779 | ||||
Liabilities, carrying value | 56,488 | 55,555 | ||||
Significant Unobservable Inputs (Level 3) | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Assets, fair value | 2,010 | 1,805 | ||||
Significant Observable Inputs (Level 2) | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Assets, fair value | 43,603 | 43,910 | ||||
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 | 685 | 701 | ||||
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 | 4,876 | 4,493 | ||||
Carrying Amount | Significant Observable Inputs (Level 2) | Senior notes [2] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Liabilities, carrying value | 3,264 | 3,262 | ||||
Carrying Amount | Significant Observable Inputs (Level 2) | Junior subordinated debentures [2] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Liabilities, carrying value | 1,090 | 1,090 | ||||
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 | 687 | 703 | ||||
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 | 5,110 | 4,792 | ||||
Fair Value | Significant Observable Inputs (Level 2) | Senior notes [2] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Liabilities, fair value | 4,153 | 4,363 | ||||
Fair Value | Significant Observable Inputs (Level 2) | Junior subordinated debentures [2] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Liabilities, fair value | 1,121 | 1,107 | ||||
Commercial Loan [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Financing Receivable, Allowance for Credit Loss | $ 24 | $ 34 | $ 38 | $ 43 | $ 21 | $ 0 |
Investments - Investments - Net
Investments - Investments - Net Realized Capital Gains (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 |
Schedule of Investments [Line Items] | ||||||
Gross gains on sales | $ 68 | $ 96 | $ 99 | $ 174 | ||
Gross losses on sales | (15) | (22) | (46) | (30) | ||
Reduction due to intent to sell | 0 | 0 | 0 | (5) | ||
Net realized capital gains (losses) | 147 | 109 | 227 | (122) | ||
Equity Securities, FV-NI, Unrealized Gain (Loss) | 80 | 67 | 118 | (34) | ||
Continental Europe Operations [Member] | Net realized capital gains | ||||||
Schedule of Investments [Line Items] | ||||||
Gain (Loss) on Disposition of Business | (19) | (18) | $ 66 | |||
Life and Annuity Insurance Product Line, Run-off Business | ||||||
Schedule of Investments [Line Items] | ||||||
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 46 | 46 | 46 | |||
Non-qualifying foreign currency derivatives | ||||||
Schedule of Investments [Line Items] | ||||||
Non-qualifying foreign currency derivatives | (29) | 7 | 6 | 99 | ||
Non-qualifying foreign currency derivatives | Other Credit Derivatives | ||||||
Schedule of Investments [Line Items] | ||||||
Non-qualifying foreign currency derivatives | 0 | 0 | (7) | 10 | ||
Other, net | ||||||
Schedule of Investments [Line Items] | ||||||
Other, net | (4) | 2 | 25 | 106 | ||
Equity Securities [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Equity securities | 88 | 75 | 131 | (311) | ||
Total Fixed Maturities, AFS | ||||||
Schedule of Investments [Line Items] | ||||||
Change in ACL on fixed maturities, AFS | 0 | (20) | 4 | (32) | ||
Mortgages [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Change in ACL on mortgage loans | $ 10 | $ (22) | $ 14 | $ (24) |
Investments - Sales of Availabl
Investments - Sales of Available for Sale Debt Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Debt Securities, Available-for-sale [Line Items] | ||||
Proceeds from Sale of Debt Securities, Available-for-sale | $ 11,370 | $ 9,023 | ||
Debt Securities [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Proceeds from Sale of Debt Securities, Available-for-sale | $ 4,000 | $ 4,100 | $ 8,200 | $ 7,200 |
Investments - Investments - Acc
Investments - Investments - Accrued Interest Receivable on Fixed Maturities, AFS and Mortgage Loans (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Interest Receivable | $ 323 | $ 327 |
Mortgages [Member] | ||
Schedule of Investments [Line Items] | ||
Interest Receivable | $ 15 | $ 14 |
Investments - Investments - ACL
Investments - Investments - ACL on Fixed Maturities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Beginning Balance | $ 19 | $ 12 | $ 23 | $ 0 |
Credit losses on fixed maturities where credit losses were not previously recorded | 0 | 23 | 2 | 35 |
Reduction due to sales | (15) | (2) | (15) | (2) |
Net increases (decreases) in allowance on fixed maturities that had an allowance in a previous period | 0 | (1) | (6) | (1) |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Ending Balance | 4 | 32 | 4 | 32 |
Corporate | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Beginning Balance | 19 | 12 | 23 | 0 |
Credit losses on fixed maturities where credit losses were not previously recorded | 0 | 23 | 2 | 35 |
Reduction due to sales | (15) | (2) | (15) | (2) |
Net increases (decreases) in allowance on fixed maturities that had an allowance in a previous period | 0 | (1) | (6) | (1) |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Ending Balance | $ 4 | $ 32 | $ 4 | $ 32 |
Investments - Investments - Ava
Investments - Investments - Available-for-Sale Securities (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||||||
Fixed maturities, available-for-sale, at fair value, amortized cost | $ 41,220 | $ 41,561 | ||||
Allowance for credit losses, fixed maturity, AFS | (4) | $ (19) | (23) | $ (32) | $ (12) | $ 0 |
Gross Unrealized Gains, fixed maturities, available-for-sale | 2,864 | 3,560 | ||||
Gross Unrealized Losses, fixed maturities, available-for-sale | (57) | (63) | ||||
Fixed maturities, available-for-sale, at fair value (amortized cost of $54,478 and $53,805) | 44,023 | 45,035 | ||||
ABS | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Fixed maturities, available-for-sale, at fair value, amortized cost | 1,295 | 1,525 | ||||
Allowance for credit losses, fixed maturity, AFS | 0 | 0 | ||||
Gross Unrealized Gains, fixed maturities, available-for-sale | 26 | 39 | ||||
Gross Unrealized Losses, fixed maturities, available-for-sale | 0 | 0 | ||||
Fixed maturities, available-for-sale, at fair value (amortized cost of $54,478 and $53,805) | 1,321 | 1,564 | ||||
Collateralized Loan Obligations [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Fixed maturities, available-for-sale, at fair value, amortized cost | 3,092 | 2,780 | ||||
Allowance for credit losses, fixed maturity, AFS | 0 | 0 | ||||
Gross Unrealized Gains, fixed maturities, available-for-sale | 9 | 7 | ||||
Gross Unrealized Losses, fixed maturities, available-for-sale | (1) | (7) | ||||
Fixed maturities, available-for-sale, at fair value (amortized cost of $54,478 and $53,805) | 3,100 | 2,780 | ||||
CMBS | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Fixed maturities, available-for-sale, at fair value, amortized cost | 3,853 | 4,219 | ||||
Allowance for credit losses, fixed maturity, AFS | 0 | 0 | ||||
Gross Unrealized Gains, fixed maturities, available-for-sale | 250 | 286 | ||||
Gross Unrealized Losses, fixed maturities, available-for-sale | (8) | (21) | ||||
Fixed maturities, available-for-sale, at fair value (amortized cost of $54,478 and $53,805) | 4,095 | 4,484 | ||||
Corporate | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Fixed maturities, available-for-sale, at fair value, amortized cost | 17,740 | 18,401 | ||||
Allowance for credit losses, fixed maturity, AFS | (4) | $ (19) | (23) | $ (32) | $ (12) | $ 0 |
Gross Unrealized Gains, fixed maturities, available-for-sale | 1,457 | 1,926 | ||||
Gross Unrealized Losses, fixed maturities, available-for-sale | (32) | (31) | ||||
Fixed maturities, available-for-sale, at fair value (amortized cost of $54,478 and $53,805) | 19,161 | 20,273 | ||||
Foreign Govt./Govt. Agencies | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Fixed maturities, available-for-sale, at fair value, amortized cost | 824 | 842 | ||||
Allowance for credit losses, fixed maturity, AFS | 0 | 0 | ||||
Gross Unrealized Gains, fixed maturities, available-for-sale | 52 | 77 | ||||
Gross Unrealized Losses, fixed maturities, available-for-sale | (3) | 0 | ||||
Fixed maturities, available-for-sale, at fair value (amortized cost of $54,478 and $53,805) | 873 | 919 | ||||
Municipal | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Fixed maturities, available-for-sale, at fair value, amortized cost | 8,281 | 8,564 | ||||
Allowance for credit losses, fixed maturity, AFS | 0 | 0 | ||||
Gross Unrealized Gains, fixed maturities, available-for-sale | 882 | 940 | ||||
Gross Unrealized Losses, fixed maturities, available-for-sale | (2) | (1) | ||||
Fixed maturities, available-for-sale, at fair value (amortized cost of $54,478 and $53,805) | 9,161 | 9,503 | ||||
RMBS | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Fixed maturities, available-for-sale, at fair value, amortized cost | 3,436 | 3,966 | ||||
Allowance for credit losses, fixed maturity, AFS | 0 | 0 | ||||
Gross Unrealized Gains, fixed maturities, available-for-sale | 92 | 144 | ||||
Gross Unrealized Losses, fixed maturities, available-for-sale | (8) | (3) | ||||
Fixed maturities, available-for-sale, at fair value (amortized cost of $54,478 and $53,805) | 3,520 | 4,107 | ||||
U.S. Treasuries | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Fixed maturities, available-for-sale, at fair value, amortized cost | 2,699 | 1,264 | ||||
Allowance for credit losses, fixed maturity, AFS | 0 | 0 | ||||
Gross Unrealized Gains, fixed maturities, available-for-sale | 96 | 141 | ||||
Gross Unrealized Losses, fixed maturities, available-for-sale | (3) | 0 | ||||
Fixed maturities, available-for-sale, at fair value (amortized cost of $54,478 and $53,805) | $ 2,792 | $ 1,405 |
Investments - Investments - Fix
Investments - Investments - Fixed Maturities, AFS, by Contractual Maturity Year (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Amortized Cost | ||
One year or less | $ 1,224 | $ 1,411 |
Over one year through five years | 7,949 | 7,832 |
Over five years through ten years | 8,817 | 7,622 |
Over ten years | 11,554 | 12,206 |
Subtotal | 29,544 | 29,071 |
Mortgage-backed and asset-backed securities | 11,676 | 12,490 |
Fixed maturities, available-for-sale, at fair value, amortized cost | 41,220 | 41,561 |
Fair Value | ||
One year or less | 1,241 | 1,432 |
Over one year through five years | 8,376 | 8,286 |
Over five years through ten years | 9,323 | 8,354 |
Over ten years | 13,047 | 14,028 |
Subtotal | 31,987 | 32,100 |
Mortgage-backed and asset-backed securities | 12,036 | 12,935 |
Fixed maturities, available-for-sale, at fair value (amortized cost of $54,478 and $53,805) | $ 44,023 | $ 45,035 |
Investments - Investments - Con
Investments - Investments - Concentration of Credit Risk (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Investments, All Other Investments [Abstract] | ||
Fair Value, Concentration of Risk, Investments | $ 0 | $ 0 |
Investments - Investments - Unr
Investments - Investments - Unrealized Losses on AFS Securities (Details) $ in Millions | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 787 | |
Percentage of Gross Unrealized Losses Depressed Less than Twenty Percent of Cost or Amortized Cost | 96.00% | |
ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months FV | $ 137 | $ 44 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 0 |
12 Months or More FV | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Total FV | 137 | 44 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 0 | 0 |
Collateralized Loan Obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months FV | 703 | 758 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 1 | 2 |
12 Months or More FV | 251 | 715 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 5 |
Total FV | 954 | 1,473 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 1 | 7 |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months FV | 130 | 410 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 1 | 17 |
12 Months or More FV | 91 | 19 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 7 | 4 |
Total FV | 221 | 429 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 8 | 21 |
Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months FV | 1,436 | 466 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 23 | 13 |
12 Months or More FV | 207 | 212 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 9 | 18 |
Total FV | 1,643 | 678 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 32 | 31 |
Foreign Govt./Govt. Agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months FV | 153 | 24 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 3 | 0 |
12 Months or More FV | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Total FV | 153 | 24 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 3 | 0 |
Municipal | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months FV | 263 | 34 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 2 | 1 |
12 Months or More FV | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Total FV | 263 | 34 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 2 | 1 |
RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months FV | 725 | 461 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 8 | 3 |
12 Months or More FV | 6 | 21 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Total FV | 731 | 482 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 8 | 3 |
U.S. Treasuries | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months FV | 377 | 39 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 3 | 0 |
12 Months or More FV | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Total FV | 377 | 39 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 3 | 0 |
Available-for-sale Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months FV | 3,924 | 2,236 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 41 | 36 |
12 Months or More FV | 555 | 967 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 16 | 27 |
Total FV | 4,479 | 3,203 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ 57 | $ 63 |
Investments - Investments - Mor
Investments - Investments - Mortgage Loans- Valuation Allowance Activity (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021USD ($) | Jun. 30, 2020 | Jun. 30, 2021USD ($) | Jun. 30, 2020 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of loans held-for-sale | 0 | 0 | 0 | ||
Number of loans with modifications | 0 | 0 | 0 | 0 | |
Commercial Loan [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Individually Evaluated for Impairment | $ 0 | $ 0 |
Investments - Investments - A_2
Investments - Investments - ACL on Mortgages (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Jan. 01, 2020 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Retained earnings | $ 14,813 | $ 14,813 | $ 13,918 | |||
Commercial Loan [Member] | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Beginning balance | (34) | $ (21) | (38) | $ 0 | ||
Financing Receivable, Allowance for Credit Loss | (24) | (43) | (24) | (43) | $ (38) | |
Current period provision | (10) | 22 | (14) | 24 | ||
Ending balance | $ (24) | $ (43) | $ (24) | $ (43) | ||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Commercial Loan [Member] | Accounting Standards Update 2016-13 [Member] | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Retained earnings | $ 19 | |||||
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Commercial Loan [Member] | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Financing Receivable, Allowance for Credit Loss | $ (19) |
Investments - Investments - Loa
Investments - Investments - Loan-to-Value and Debt Service Coverage Ratio by Origination Year (Details) $ in Millions | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Schedule of Investments [Line Items] | ||||||
Current Weighted Average Loan to Value Ratio of Commercial Mortgage Loan | 54.00% | |||||
Original Weighted Average Loan to Value Ratio of Commercial Mortgage loan | 60.00% | |||||
Commercial Loan [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Financing Receivable, before Allowance for Credit Loss | $ 4,900 | $ 4,531 | ||||
Avg. Debt-Service Coverage Ratio | 2.42 | 2.52 | ||||
Financing Receivable, Allowance for Credit Loss | $ 24 | $ 34 | $ 38 | $ 43 | $ 21 | $ 0 |
Commercial Loan [Member] | 65% - 80% | ||||||
Schedule of Investments [Line Items] | ||||||
Avg. Debt-Service Coverage Ratio | 1.54 | 1.59 | ||||
Commercial Loan [Member] | Less than 65% | ||||||
Schedule of Investments [Line Items] | ||||||
Avg. Debt-Service Coverage Ratio | 2.55 | 2.69 | ||||
Amortized Cost [Member] | Commercial Loan [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Mortgage loans originated in current year | $ 713 | $ 687 | ||||
Mortgage loans originated in year before latest fiscal year | 699 | 919 | ||||
Mortgage loans originated two years before latest fiscal year | 917 | 622 | ||||
Mortgage loans originated three years before latest fiscal year | 603 | 491 | ||||
Mortgage loans originated four years before latest fiscal year | 466 | 286 | ||||
Mortgage loans originated five or more years before latest fiscal year | 1,502 | 1,526 | ||||
Financing Receivable, before Allowance for Credit Loss | 4,900 | 4,531 | ||||
Amortized Cost [Member] | Commercial Loan [Member] | 65% - 80% | ||||||
Schedule of Investments [Line Items] | ||||||
Mortgage loans originated in current year | 0 | 28 | ||||
Mortgage loans originated in year before latest fiscal year | 57 | 243 | ||||
Mortgage loans originated two years before latest fiscal year | 187 | 212 | ||||
Mortgage loans originated three years before latest fiscal year | 175 | 45 | ||||
Mortgage loans originated four years before latest fiscal year | 45 | 51 | ||||
Mortgage loans originated five or more years before latest fiscal year | 140 | 115 | ||||
Financing Receivable, before Allowance for Credit Loss | 604 | 694 | ||||
Amortized Cost [Member] | Commercial Loan [Member] | Less than 65% | ||||||
Schedule of Investments [Line Items] | ||||||
Mortgage loans originated in current year | 713 | 659 | ||||
Mortgage loans originated in year before latest fiscal year | 642 | 676 | ||||
Mortgage loans originated two years before latest fiscal year | 730 | 410 | ||||
Mortgage loans originated three years before latest fiscal year | 428 | 446 | ||||
Mortgage loans originated four years before latest fiscal year | 421 | 235 | ||||
Mortgage loans originated five or more years before latest fiscal year | 1,362 | 1,411 | ||||
Financing Receivable, before Allowance for Credit Loss | $ 4,296 | $ 3,837 | ||||
Originated in Current Fiscal Year | Commercial Loan [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Avg. Debt-Service Coverage Ratio | 2.93 | 2.52 | ||||
Originated in Current Fiscal Year | Commercial Loan [Member] | 65% - 80% | ||||||
Schedule of Investments [Line Items] | ||||||
Avg. Debt-Service Coverage Ratio | 0 | 1.62 | ||||
Originated in Current Fiscal Year | Commercial Loan [Member] | Less than 65% | ||||||
Schedule of Investments [Line Items] | ||||||
Avg. Debt-Service Coverage Ratio | 2.93 | 2.56 | ||||
Originated in Fiscal Year Before Latest Fiscal Year | Commercial Loan [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Avg. Debt-Service Coverage Ratio | 2.64 | 2.51 | ||||
Originated in Fiscal Year Before Latest Fiscal Year | Commercial Loan [Member] | 65% - 80% | ||||||
Schedule of Investments [Line Items] | ||||||
Avg. Debt-Service Coverage Ratio | 2.13 | 1.58 | ||||
Originated in Fiscal Year Before Latest Fiscal Year | Commercial Loan [Member] | Less than 65% | ||||||
Schedule of Investments [Line Items] | ||||||
Avg. Debt-Service Coverage Ratio | 2.69 | 2.85 | ||||
Originated Two Years Before Latest Fiscal Year | Commercial Loan [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Avg. Debt-Service Coverage Ratio | 2.49 | 1.94 | ||||
Originated Two Years Before Latest Fiscal Year | Commercial Loan [Member] | 65% - 80% | ||||||
Schedule of Investments [Line Items] | ||||||
Avg. Debt-Service Coverage Ratio | 1.61 | 1.33 | ||||
Originated Two Years Before Latest Fiscal Year | Commercial Loan [Member] | Less than 65% | ||||||
Schedule of Investments [Line Items] | ||||||
Avg. Debt-Service Coverage Ratio | 2.71 | 2.25 | ||||
Originated Three Years Before Latest Fiscal Year | Commercial Loan [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Avg. Debt-Service Coverage Ratio | 1.93 | 1.90 | ||||
Originated Three Years Before Latest Fiscal Year | Commercial Loan [Member] | 65% - 80% | ||||||
Schedule of Investments [Line Items] | ||||||
Avg. Debt-Service Coverage Ratio | 1.25 | 2.02 | ||||
Originated Three Years Before Latest Fiscal Year | Commercial Loan [Member] | Less than 65% | ||||||
Schedule of Investments [Line Items] | ||||||
Avg. Debt-Service Coverage Ratio | 2.22 | 1.89 | ||||
Originated Four Years Before Latest Fiscal Year | Commercial Loan [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Avg. Debt-Service Coverage Ratio | 1.84 | 2.80 | ||||
Originated Four Years Before Latest Fiscal Year | Commercial Loan [Member] | 65% - 80% | ||||||
Schedule of Investments [Line Items] | ||||||
Avg. Debt-Service Coverage Ratio | 1.75 | 1.92 | ||||
Originated Four Years Before Latest Fiscal Year | Commercial Loan [Member] | Less than 65% | ||||||
Schedule of Investments [Line Items] | ||||||
Avg. Debt-Service Coverage Ratio | 1.85 | 2.99 | ||||
Originated Five or More Years Before Latest Fiscal Year | Commercial Loan [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Avg. Debt-Service Coverage Ratio | 2.42 | 2.92 | ||||
Originated Five or More Years Before Latest Fiscal Year | Commercial Loan [Member] | 65% - 80% | ||||||
Schedule of Investments [Line Items] | ||||||
Avg. Debt-Service Coverage Ratio | 1.51 | 1.74 | ||||
Originated Five or More Years Before Latest Fiscal Year | Commercial Loan [Member] | Less than 65% | ||||||
Schedule of Investments [Line Items] | ||||||
Avg. Debt-Service Coverage Ratio | 2.51 | 3.01 |
Investments - Investments - M_2
Investments - Investments - Mortgage Loans by Region and Property Type (Details) - Commercial Loan [Member] - USD ($) $ in Millions | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing Receivable, before Allowance for Credit Loss | $ 4,900 | $ 4,531 | ||||
Percent of Total | 100.00% | 100.00% | ||||
Financing Receivable, Allowance for Credit Loss | $ (24) | $ (34) | $ (38) | $ (43) | $ (21) | $ 0 |
Financing Receivable, after Allowance for Credit Loss | 4,876 | 4,493 | ||||
Industrial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing Receivable, before Allowance for Credit Loss | $ 1,622 | $ 1,339 | ||||
Percent of Total | 33.10% | 29.50% | ||||
Multifamily | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing Receivable, before Allowance for Credit Loss | $ 1,609 | $ 1,498 | ||||
Percent of Total | 32.80% | 33.10% | ||||
Office | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing Receivable, before Allowance for Credit Loss | $ 652 | $ 774 | ||||
Percent of Total | 13.30% | 17.10% | ||||
Retail | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing Receivable, before Allowance for Credit Loss | $ 901 | $ 788 | ||||
Percent of Total | 18.40% | 17.40% | ||||
Residential Real Estate [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing Receivable, before Allowance for Credit Loss | $ 76 | $ 92 | ||||
Percent of Total | 1.60% | 2.00% | ||||
Other | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing Receivable, before Allowance for Credit Loss | $ 40 | $ 40 | ||||
Percent of Total | 0.80% | 0.90% | ||||
Mortgages [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Percent of Total | 100.00% | 100.00% | ||||
East North Central [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing Receivable, before Allowance for Credit Loss | $ 293 | $ 290 | ||||
East North Central [Member] | Mortgages [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Percent of Total | 6.00% | 6.40% | ||||
Middle Atlantic [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing Receivable, before Allowance for Credit Loss | $ 289 | $ 291 | ||||
Middle Atlantic [Member] | Mortgages [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Percent of Total | 5.90% | 6.40% | ||||
Mountain [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing Receivable, before Allowance for Credit Loss | $ 345 | $ 254 | ||||
Mountain [Member] | Mortgages [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Percent of Total | 7.00% | 5.60% | ||||
New England [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing Receivable, before Allowance for Credit Loss | $ 395 | $ 397 | ||||
New England [Member] | Mortgages [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Percent of Total | 8.10% | 8.80% | ||||
Pacific [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing Receivable, before Allowance for Credit Loss | $ 1,196 | $ 1,001 | ||||
Pacific [Member] | Mortgages [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Percent of Total | 24.40% | 22.10% | ||||
South Atlantic [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing Receivable, before Allowance for Credit Loss | $ 1,246 | $ 1,038 | ||||
South Atlantic [Member] | Mortgages [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Percent of Total | 25.40% | 22.90% | ||||
West North Central [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing Receivable, before Allowance for Credit Loss | $ 44 | $ 44 | ||||
West North Central [Member] | Mortgages [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Percent of Total | 0.90% | 1.00% | ||||
West South Central [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing Receivable, before Allowance for Credit Loss | $ 373 | $ 433 | ||||
West South Central [Member] | Mortgages [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Percent of Total | 7.60% | 9.50% | ||||
Region Others [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing Receivable, before Allowance for Credit Loss | $ 719 | $ 783 | ||||
Region Others [Member] | Mortgages [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Percent of Total | 14.70% | 17.30% |
Investments - Investments - Pas
Investments - Investments - Past-Due Mortgage Loans (Details) - Commercial Loan [Member] - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | $ 4,900 | $ 4,531 |
Mortgages [Member] | Financial Asset, Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | $ 0 | $ 0 |
Investments - Investments - M_3
Investments - Investments - Mortgage Servicing (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Continuing Involvement with Transferred Financial Assets, Principal Amount Outstanding | $ 7,500 | $ 6,900 |
Continuing Involvement with Derecognized Transferred Financial Assets, Amount Outstanding | 3,800 | 3,700 |
Servicing Asset at Fair Value, Amount | 0 | 0 |
Investments [Member] | ||
Continuing Involvement with Continued to be Recognized Transferred Financial Assets, Amount Outstanding | $ 3,700 | $ 3,200 |
Investments - Investments - VIE
Investments - Investments - VIEs (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule of Investments [Line Items] | ||
Variable Interest Entity, Primary Beneficiary, Maximum Loss Exposure, Amount | $ 0 | $ 0 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 1,600 | 1,300 |
Variable Interest Entity, Not Primary Beneficiary [Member] | ||
Schedule of Investments [Line Items] | ||
Variable Interest Entity, Reporting Entity Involvement, Commitments | $ 1,000 | $ 768 |
Investments - Investments - Sec
Investments - Investments - Securities Lending, Repurchase Agreements, and Other Collateral Transactions (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Securities Lending Transactions: | ||||
Required Collateral Held Under Securities Lending, Percentage | 100.00% | 100.00% | 100.00% | |
Securities Loaned | $ 0 | $ 0 | $ 0 | $ 0 |
Reverse Repurchase Agreements, Other Collateral Transactions and Restricted Investments | ||||
Securities for Reverse Repurchase Agreements | 18 | 18 | 18 | 30 |
Assets Held by Insurance Regulators | 2,500 | 2,500 | 2,500 | 2,600 |
Life and Annuity Insurance Product Line, Run-off Business | ||||
Equity Method Investment, Realized Gain (Loss) on Disposal [Abstract] | ||||
Proceeds from Sale of Equity Method Investments | 217 | |||
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 46 | $ 46 | $ 46 | |
Domestic | ||||
Securities Lending Transactions: | ||||
Securities Loaned, Collateral, Percentage Required at Origination | 102.00% | 102.00% | 102.00% | |
Non-domestic | ||||
Securities Lending Transactions: | ||||
Securities Loaned, Collateral, Percentage Required at Origination | 105.00% | 105.00% | 105.00% | |
US Treasury Securities [Member] | ||||
Reverse Repurchase Agreements, Other Collateral Transactions and Restricted Investments | ||||
Debt Securities, Available-for-sale, Restricted | $ 9 | $ 9 | $ 9 | 34 |
Maximum | ||||
Securities Lending Transactions: | ||||
Securities Loaned, Term | 90 days | |||
Fair Value Measured at Net Asset Value Per Share [Member] | ||||
Reverse Repurchase Agreements, Other Collateral Transactions and Restricted Investments | ||||
Deposit Assets | 57 | 57 | $ 57 | 54 |
Syndicate Policyholders [Member] | Debt Securities [Member] | ||||
Reverse Repurchase Agreements, Other Collateral Transactions and Restricted Investments | ||||
Debt Securities, Available-for-sale, Restricted | 685 | 685 | 685 | 661 |
Syndicate Policyholders [Member] | Short-term investments | ||||
Reverse Repurchase Agreements, Other Collateral Transactions and Restricted Investments | ||||
Restricted Investments, Current | 2 | 2 | 2 | 26 |
Lloyd's of London [Member] | Debt Securities [Member] | ||||
Reverse Repurchase Agreements, Other Collateral Transactions and Restricted Investments | ||||
Debt Securities, Available-for-sale, Restricted | $ 172 | $ 172 | $ 172 | $ 175 |
Derivative Instruments - Deriva
Derivative Instruments - Derivatives - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative, Notional Amount | $ 11,366,000,000 | $ 11,366,000,000 | $ 12,129,000,000 | ||
Derivative, Collateral, Right to Reclaim Cash | 1,000,000 | 1,000,000 | 0 | ||
Pledged collateral, securities | 58,000,000 | 58,000,000 | 90,000,000 | ||
Cash collateral held | 15,000,000 | 15,000,000 | 24,000,000 | ||
Securities Received as Collateral | $ 1,000,000 | $ 1,000,000 | 1,000,000 | ||
Collateral Securities Repledged, Delivered, or Used | 0 | 0 | 0 | ||
Fair Value of Securities Received as Collateral that Have Been Resold or Repledged | 0 | 0 | 0 | ||
Over the Counter [Member] | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Pledged collateral, securities | 105,000,000 | 105,000,000 | 83,000,000 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Loss on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring | 0 | $ 0 | 0 | $ 0 | |
AOCI Attributable to Parent [Member] | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | 33,000,000 | ||||
Not Designated as Hedging Instrument | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative, Notional Amount | 8,729,000,000 | 8,729,000,000 | 9,503,000,000 | ||
Not Designated as Hedging Instrument | Interest rate swaps | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative, Notional Amount | $ 7,200,000,000 | $ 7,200,000,000 | $ 7,600,000,000 |
Derivative Instruments - Deri_2
Derivative Instruments - Derivatives - Derivative Balance Sheet Classification (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | $ 11,366 | $ 12,129 |
Fair Value | (45) | (61) |
Asset Derivatives | 25 | 33 |
Liability Derivatives | (70) | (94) |
Other investments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 1,386 | 9,585 |
Fair Value | 14 | 23 |
Asset Derivatives | 17 | 25 |
Liability Derivatives | (3) | (2) |
Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 9,700 | 2,275 |
Fair Value | (59) | (84) |
Asset Derivatives | 8 | 8 |
Liability Derivatives | (67) | (92) |
Available-for-sale Securities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 280 | 269 |
Fair Value | 0 | 0 |
Asset Derivatives | 0 | 0 |
Liability Derivatives | 0 | 0 |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 8,729 | 9,503 |
Fair Value | (41) | (48) |
Asset Derivatives | 20 | 30 |
Liability Derivatives | (61) | (78) |
Interest rate swaps | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 2,340 | 2,340 |
Fair Value | 0 | 0 |
Asset Derivatives | 0 | 0 |
Liability Derivatives | 0 | 0 |
Interest rate swaps | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 7,200 | 7,600 |
Foreign currency swaps | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 297 | 286 |
Fair Value | (4) | (13) |
Asset Derivatives | 5 | 3 |
Liability Derivatives | (9) | (16) |
Total cash flow hedges | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 2,637 | 2,626 |
Fair Value | (4) | (13) |
Asset Derivatives | 5 | 3 |
Liability Derivatives | (9) | (16) |
Interest rate swaps and futures | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 8,004 | 8,335 |
Fair Value | (52) | (69) |
Asset Derivatives | 5 | 4 |
Liability Derivatives | (57) | (73) |
Foreign currency swaps and forwards | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 280 | 269 |
Fair Value | 0 | 0 |
Asset Derivatives | 0 | 0 |
Liability Derivatives | 0 | 0 |
Credit derivatives that purchase credit protection | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 6 | 6 |
Fair Value | 0 | 0 |
Asset Derivatives | 0 | 0 |
Liability Derivatives | 0 | 0 |
Credit derivatives that assume credit risk | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 225 | 675 |
Fair Value | 11 | 21 |
Asset Derivatives | 11 | 21 |
Liability Derivatives | 0 | 0 |
Credit derivatives in offsetting positions | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 214 | 218 |
Fair Value | 0 | 0 |
Asset Derivatives | 4 | 5 |
Liability Derivatives | $ (4) | $ (5) |
Derivative Instruments - Deri_3
Derivative Instruments - Derivatives - Offsetting Derivative Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Asset Derivatives | $ 25 | $ 33 |
Derivative assets | 14 | 23 |
Gross Amounts of Recognized (Liabilities) | (70) | (94) |
Derivative Liability | (59) | (84) |
Derivative, Collateral, Right to Reclaim Cash | 1 | 0 |
Other liabilities | ||
Derivative [Line Items] | ||
Derivative, Collateral, Obligation to Return Cash | 2 | 4 |
Gross Amounts of Recognized (Liabilities) | (70) | (94) |
Gross Amounts Offset in the Statement of Financial Position, liabilities | (9) | (6) |
Derivative Liability | (59) | (84) |
Derivative, Collateral, Obligation to Return Cash | (2) | (4) |
Financial Collateral (Received) | (58) | (83) |
Net amount, liabilities | (3) | (5) |
Other investments | ||
Derivative [Line Items] | ||
Asset Derivatives | 25 | 33 |
Gross Amounts Offset in the Statement of Financial Position, assets | 24 | 31 |
Derivative assets | 14 | 23 |
Derivative, Collateral, Obligation to Return Cash | 13 | 21 |
Financial Collateral Pledged | 1 | 1 |
Net Amount, assets | 0 | 1 |
Derivative, Collateral, Obligation to Return Cash | $ (13) | $ (21) |
Derivative Instruments - Deri_4
Derivative Instruments - Derivatives - Cash Flow Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Net Investment Income | $ 581 | $ 339 | $ 1,090 | $ 798 |
Interest Expense | 57 | 57 | 114 | 121 |
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 | 10 | 7 | 20 | 10 |
Interest Expense | (3) | (2) | (5) | (2) |
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 | 1 | 1 | 2 | 2 |
Cash Flow Hedging | Designated as Hedging Instrument | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | 3 | 0 | 17 | 60 |
Cash Flow Hedging | Designated as Hedging Instrument | Reclassification out of Accumulated Other Comprehensive Income | Net investment income | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 11 | 8 | 22 | 12 |
Cash Flow Hedging | Designated as Hedging Instrument | Reclassification out of Accumulated Other Comprehensive Income | Interest expense | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | (3) | (2) | (5) | (2) |
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swaps | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | (4) | 4 | 6 | 36 |
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swaps | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | Net investment income | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 10 | 7 | 20 | 10 |
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swaps | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | Interest expense | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | (3) | (2) | (5) | (2) |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign currency swaps | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | 7 | (4) | 11 | 24 |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign currency swaps | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | Net investment income | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 1 | 1 | 2 | 2 |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign currency swaps | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | Interest expense | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | $ 0 | $ 0 | $ 0 | $ 0 |
Derivative Instruments - Deri_5
Derivative Instruments - Derivatives - Non-qualifying Strategies (Details) - Not Designated as Hedging Instrument - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Non-qualifying foreign currency derivatives | $ (29) | $ 7 | $ 6 | $ 99 |
Foreign Exchange Forward [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Non-qualifying foreign currency derivatives | 0 | 0 | 0 | 3 |
Interest rate swaps, swaptions, and futures | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Non-qualifying foreign currency derivatives | (32) | 1 | 0 | 21 |
Credit derivatives that assume credit risk | Credit derivatives that purchase credit protection | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Non-qualifying foreign currency derivatives | 0 | (2) | 0 | 4 |
Credit derivatives that assume credit risk | Credit derivatives that assume credit risk | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Non-qualifying foreign currency derivatives | 3 | 8 | 6 | (4) |
Equity options | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Non-qualifying foreign currency derivatives | $ 0 | $ 0 | $ 0 | $ 75 |
Derivative Instruments - Deri_6
Derivative Instruments - Derivatives - Credit Risk Assumed through Credit Derivatives (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Credit Derivatives [Line Items] | ||
Derivative, Notional Amount | $ 11,366 | $ 12,129 |
Fair Value | (45) | (61) |
Credit derivatives | ||
Credit Derivatives [Line Items] | ||
Derivative, Notional Amount | 332 | 784 |
Fair Value | 9 | 18 |
Offsetting Notional Amount | 107 | 109 |
Offsetting Fair Value | 2 | 3 |
Credit derivatives | Single name credit default swaps | A Minus | Investment grade risk exposure | ||
Credit Derivatives [Line Items] | ||
Derivative, Notional Amount | 175 | |
Fair Value | $ 9 | |
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 | 50 | |
Fair Value | $ 1 | |
Weighted Average Years to Maturity | 5 years | |
Offsetting Notional Amount | $ 0 | |
Offsetting Fair Value | 0 | |
Credit derivatives | Basket credit default swaps | BBB Plus | Investment grade risk exposure | ||
Credit Derivatives [Line Items] | ||
Derivative, Notional Amount | 100 | 500 |
Fair Value | $ 2 | $ 12 |
Weighted Average Years to Maturity | 5 years | 5 years |
Offsetting Notional Amount | $ 0 | $ 0 |
Offsetting Fair Value | 0 | 0 |
Credit derivatives | Basket credit default swaps | Standard & Poor's, AAA Rating [Member] | Investment grade risk exposure | ||
Credit Derivatives [Line Items] | ||
Derivative, Notional Amount | 100 | 100 |
Fair Value | $ 1 | $ 1 |
Weighted Average Years to Maturity | 7 years | 8 years |
Offsetting Notional Amount | $ 100 | $ 100 |
Offsetting Fair Value | (1) | (1) |
Credit derivatives | Basket credit default swaps | Standard & Poor's, B+ Rating | Below investment grade risk exposure | ||
Credit Derivatives [Line Items] | ||
Derivative, Notional Amount | 75 | |
Fair Value | $ 8 | |
Weighted Average Years to Maturity | 5 years | |
Offsetting Notional Amount | $ 0 | |
Offsetting Fair Value | 0 | |
Credit derivatives | Basket credit default swaps | Standard & Poor's, CCC+ Rating | Below investment grade risk exposure | ||
Credit Derivatives [Line Items] | ||
Derivative, Notional Amount | 9 | |
Fair Value | $ (4) | |
Average Term of Credit Risk Derivatives Less than 1 Year | Less than 1 year | |
Offsetting Notional Amount | $ 9 | |
Offsetting Fair Value | $ 4 | |
Credit derivatives | Basket credit default swaps | Standard & Poor's, B- Rating | Below investment grade risk exposure | ||
Credit Derivatives [Line Items] | ||
Derivative, Notional Amount | 7 | |
Fair Value | $ (3) | |
Average Term of Credit Risk Derivatives Less than 1 Year | Less than 1 year | |
Offsetting Notional Amount | $ 7 | |
Offsetting Fair Value | $ 3 |
Premiums Receivable - Premiums
Premiums Receivable - Premiums Receivable and Agents' Balances (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Premiums Receivable, Gross | $ 4,756 | $ 4,420 | ||||
ACL | (134) | $ (144) | (152) | $ (183) | $ (139) | $ (145) |
Premiums receivable and agents' balances, net of ACL | 4,622 | 4,268 | ||||
Premiums receivable, excluding receivables for losses within a deductible and retrospectively-rated policy premiums | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Premiums Receivable, Gross | 4,228 | 3,851 | ||||
ACL | (97) | (108) | (117) | (139) | (98) | (85) |
Receivables for Loss within a Deductible and Retrospectively-Rated Policy Premiums | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Premiums Receivable, Gross | 528 | 569 | ||||
ACL | (37) | $ (36) | (35) | $ (44) | $ (41) | $ (60) |
Receivables for Loss within a Deductible and Retrospectively-Rated Policy Premiums | Standard & Poor's, AAA Rating [Member] | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Premiums Receivable, Gross | 0 | 0 | ||||
Receivables for Loss within a Deductible and Retrospectively-Rated Policy Premiums | Standard & Poor's, AA Rating | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Premiums Receivable, Gross | 139 | 142 | ||||
Receivables for Loss within a Deductible and Retrospectively-Rated Policy Premiums | A | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Premiums Receivable, Gross | 56 | 62 | ||||
Receivables for Loss within a Deductible and Retrospectively-Rated Policy Premiums | Standard & Poor's, BBB Rating | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Premiums Receivable, Gross | 163 | 185 | ||||
Receivables for Loss within a Deductible and Retrospectively-Rated Policy Premiums | Standard & Poor's, BB Rating | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Premiums Receivable, Gross | 105 | 115 | ||||
Receivables for Loss within a Deductible and Retrospectively-Rated Policy Premiums | Standard & Poor's, Below BB Rating | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Premiums Receivable, Gross | $ 65 | $ 65 |
Premiums Receivable - Rollforwa
Premiums Receivable - Rollforward of Premiums Receivable and Agents' Balances (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Premium Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Premium Receivable, Allowance for Credit Loss | $ (144) | $ (139) | $ (152) | $ (145) |
Premium Receivable, Credit Loss Expense (Reversal) | 2 | 51 | 7 | 81 |
Premium Receivable, Allowance for Credit Loss, Writeoff | (15) | (8) | (30) | (23) |
Premium Receivable, Allowance for Credit Loss, Recovery | 3 | 1 | 5 | 3 |
Premium Receivable, Allowance for Credit Loss | (134) | (183) | (134) | (183) |
Premiums Receivable, Due in One Year or Less, Excluding Receivables for Loss within a Deductible and Retrospectively-Rated Policy Premiums [Member] | ||||
Premium Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Premium Receivable, Allowance for Credit Loss | (108) | (98) | (117) | (85) |
Premium Receivable, Credit Loss Expense (Reversal) | 1 | 48 | 5 | 76 |
Premium Receivable, Allowance for Credit Loss, Writeoff | (15) | (8) | (30) | (23) |
Premium Receivable, Allowance for Credit Loss, Recovery | 3 | 1 | 5 | 3 |
Premium Receivable, Allowance for Credit Loss | (97) | (139) | (97) | (139) |
Premiums Receivable, Loss Within a Deductible and Retrospectively-Rated Policy Premiums [Member] | ||||
Premium Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Premium Receivable, Allowance for Credit Loss | (36) | (41) | (35) | (60) |
Premium Receivable, Credit Loss Expense (Reversal) | 1 | 3 | 2 | 5 |
Premium Receivable, Allowance for Credit Loss, Writeoff | 0 | 0 | 0 | 0 |
Premium Receivable, Allowance for Credit Loss, Recovery | 0 | 0 | 0 | 0 |
Premium Receivable, Allowance for Credit Loss | $ (37) | $ (44) | $ (37) | (44) |
Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-13 [Member] | Premiums Receivable [Member] | ||||
Premium Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Premium Receivable, Allowance for Credit Loss | 23 | |||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Premiums Receivable, Due in One Year or Less, Excluding Receivables for Loss within a Deductible and Retrospectively-Rated Policy Premiums [Member] | Accounting Standards Update 2016-13 [Member] | Premiums Receivable [Member] | ||||
Premium Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Premium Receivable, Allowance for Credit Loss | 2 | |||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Premiums Receivable, Loss Within a Deductible and Retrospectively-Rated Policy Premiums [Member] | Accounting Standards Update 2016-13 [Member] | Premiums Receivable [Member] | ||||
Premium Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Premium Receivable, Allowance for Credit Loss | 21 | |||
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | ||||
Premium Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Premium Receivable, Allowance for Credit Loss | (122) | |||
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Premiums Receivable, Due in One Year or Less, Excluding Receivables for Loss within a Deductible and Retrospectively-Rated Policy Premiums [Member] | ||||
Premium Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Premium Receivable, Allowance for Credit Loss | (83) | |||
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Premiums Receivable, Loss Within a Deductible and Retrospectively-Rated Policy Premiums [Member] | ||||
Premium Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Premium Receivable, Allowance for Credit Loss | $ (39) |
Reinsurance - Credit Quality In
Reinsurance - Credit Quality Information (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | $ 6,316 | $ 6,119 | ||||
Reinsurance Recoverable, Allowance for Credit Loss | (43) | $ (42) | (55) | $ (54) | $ (52) | $ (48) |
Net Reinsurance Recoverables | 6,217 | 6,011 | ||||
Mandatory and Voluntary Risk Pools [Member] | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | 254 | 259 | ||||
Captives [Member] | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | 306 | 305 | ||||
Other not rated companies [Member] | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | 248 | 259 | ||||
Uncollectible reinsurance | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverable, Allowance for Credit Loss | (99) | (98) | (108) | (111) | (117) | (114) |
AMBestRated [Member] | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | 5,508 | 5,296 | ||||
AM Best, A++ Rating [Member] | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | 1,704 | 1,598 | ||||
AM Best, A+ Rating [Member] | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | 2,402 | 2,323 | ||||
AM Best, A Rating [Member] | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | 682 | 638 | ||||
AM Best, A- Rating [Member] | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | 43 | 46 | ||||
AM Best, B++ Rating [Member] | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | 655 | 669 | ||||
AM Best, Below plus plus Rating [Member] | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | 22 | 22 | ||||
Corporate | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | 285 | 308 | ||||
Reinsurance Recoverable, Allowance for Credit Loss | (2) | (2) | (2) | (2) | (2) | 0 |
Net Reinsurance Recoverables | 283 | 306 | ||||
Corporate | Mandatory and Voluntary Risk Pools [Member] | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | 0 | 0 | ||||
Corporate | Captives [Member] | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | 0 | 0 | ||||
Corporate | Other not rated companies [Member] | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | 0 | 0 | ||||
Corporate | Uncollectible reinsurance | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverable, Allowance for Credit Loss | (2) | (2) | (2) | (2) | (2) | 0 |
Corporate | AMBestRated [Member] | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | 285 | 308 | ||||
Corporate | AM Best, A++ Rating [Member] | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | 0 | 0 | ||||
Corporate | AM Best, A+ Rating [Member] | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | 282 | 305 | ||||
Corporate | AM Best, A Rating [Member] | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | 0 | 0 | ||||
Corporate | AM Best, A- Rating [Member] | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | 0 | 0 | ||||
Corporate | AM Best, B++ Rating [Member] | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | 3 | 3 | ||||
Corporate | AM Best, Below plus plus Rating [Member] | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | 0 | 0 | ||||
Property, Liability and Casualty Insurance Product Line | Operating Segments [Member] | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | 5,775 | 5,566 | ||||
Reinsurance Recoverable, Allowance for Credit Loss | (40) | (39) | (52) | (51) | (49) | (48) |
Net Reinsurance Recoverables | 5,679 | 5,461 | ||||
Property, Liability and Casualty Insurance Product Line | Operating Segments [Member] | Mandatory and Voluntary Risk Pools [Member] | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | 254 | 259 | ||||
Property, Liability and Casualty Insurance Product Line | Operating Segments [Member] | Captives [Member] | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | 306 | 305 | ||||
Property, Liability and Casualty Insurance Product Line | Operating Segments [Member] | Other not rated companies [Member] | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | 241 | 254 | ||||
Property, Liability and Casualty Insurance Product Line | Operating Segments [Member] | Uncollectible reinsurance | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverable, Allowance for Credit Loss | (96) | (95) | (105) | (108) | (114) | (114) |
Property, Liability and Casualty Insurance Product Line | Operating Segments [Member] | AMBestRated [Member] | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | 4,974 | 4,748 | ||||
Property, Liability and Casualty Insurance Product Line | Operating Segments [Member] | AM Best, A++ Rating [Member] | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | 1,704 | 1,598 | ||||
Property, Liability and Casualty Insurance Product Line | Operating Segments [Member] | AM Best, A+ Rating [Member] | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | 1,881 | 1,788 | ||||
Property, Liability and Casualty Insurance Product Line | Operating Segments [Member] | AM Best, A Rating [Member] | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | 682 | 638 | ||||
Property, Liability and Casualty Insurance Product Line | Operating Segments [Member] | AM Best, A- Rating [Member] | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | 34 | 37 | ||||
Property, Liability and Casualty Insurance Product Line | Operating Segments [Member] | AM Best, B++ Rating [Member] | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | 652 | 666 | ||||
Property, Liability and Casualty Insurance Product Line | Operating Segments [Member] | AM Best, Below plus plus Rating [Member] | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | 21 | 21 | ||||
Group Benefits | Operating Segments [Member] | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | 256 | 245 | ||||
Reinsurance Recoverable, Allowance for Credit Loss | (1) | (1) | (1) | (1) | (1) | 0 |
Net Reinsurance Recoverables | 255 | 244 | ||||
Group Benefits | Operating Segments [Member] | Mandatory and Voluntary Risk Pools [Member] | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | 0 | 0 | ||||
Group Benefits | Operating Segments [Member] | Captives [Member] | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | 0 | 0 | ||||
Group Benefits | Operating Segments [Member] | Other not rated companies [Member] | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | 7 | 5 | ||||
Group Benefits | Operating Segments [Member] | Uncollectible reinsurance | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverable, Allowance for Credit Loss | (1) | $ (1) | (1) | $ (1) | $ (1) | $ 0 |
Group Benefits | Operating Segments [Member] | AMBestRated [Member] | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | 249 | 240 | ||||
Group Benefits | Operating Segments [Member] | AM Best, A++ Rating [Member] | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | 0 | 0 | ||||
Group Benefits | Operating Segments [Member] | AM Best, A+ Rating [Member] | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | 239 | 230 | ||||
Group Benefits | Operating Segments [Member] | AM Best, A Rating [Member] | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | 0 | 0 | ||||
Group Benefits | Operating Segments [Member] | AM Best, A- Rating [Member] | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | 9 | 9 | ||||
Group Benefits | Operating Segments [Member] | AM Best, B++ Rating [Member] | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | 0 | 0 | ||||
Group Benefits | Operating Segments [Member] | AM Best, Below plus plus Rating [Member] | ||||||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||||||
Reinsurance Recoverables, Gross | $ 1 | $ 1 |
Reinsurance - Reinsurance Recov
Reinsurance - Reinsurance Recoverable, Allowance for Credit Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2019 | |
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward] | |||||
Reinsurance Recoverable, Allowance for Credit Loss, Beginning Balance | $ 42 | $ 52 | $ 55 | $ 48 | |
Reinsurance Recoverable, Credit Loss Expense (Reversal) | 1 | 1 | (12) | 3 | |
Reinsurance Recoverable, Allowance for Credit Loss, Ending Balance | 43 | 54 | 43 | 54 | |
Reinsurance Recoverable, Allowance for Credit Loss, Recovery | 0 | 1 | 0 | 1 | |
Operating Segments [Member] | Property, Liability and Casualty Insurance Product Line | |||||
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward] | |||||
Reinsurance Recoverable, Allowance for Credit Loss, Beginning Balance | 39 | 49 | 52 | 48 | |
Reinsurance Recoverable, Credit Loss Expense (Reversal) | 1 | 1 | (12) | 2 | |
Reinsurance Recoverable, Allowance for Credit Loss, Ending Balance | 40 | 51 | 40 | 51 | |
Reinsurance Recoverable, Allowance for Credit Loss, Recovery | 0 | 1 | 0 | 1 | |
Operating Segments [Member] | Group Benefits | |||||
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward] | |||||
Reinsurance Recoverable, Allowance for Credit Loss, Beginning Balance | 1 | 1 | 1 | 0 | |
Reinsurance Recoverable, Credit Loss Expense (Reversal) | 0 | 0 | 0 | 0 | |
Reinsurance Recoverable, Allowance for Credit Loss, Ending Balance | 1 | 1 | 1 | 1 | |
Reinsurance Recoverable, Allowance for Credit Loss, Recovery | 0 | 0 | 0 | 0 | |
Corporate, Non-Segment [Member] | |||||
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward] | |||||
Reinsurance Recoverable, Allowance for Credit Loss, Beginning Balance | 2 | 2 | 2 | 0 | |
Reinsurance Recoverable, Credit Loss Expense (Reversal) | 0 | 0 | 0 | 1 | |
Reinsurance Recoverable, Allowance for Credit Loss, Ending Balance | 2 | 2 | 2 | 2 | |
Reinsurance Recoverable, Allowance for Credit Loss, Recovery | 0 | 0 | 0 | 0 | |
Uncollectible reinsurance | |||||
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward] | |||||
Reinsurance Recoverable, Allowance for Credit Loss, Beginning Balance | 98 | 117 | 108 | 114 | |
Reinsurance Recoverable, Allowance for Credit Loss, Ending Balance | 99 | 111 | 99 | 111 | |
Uncollectible reinsurance | Operating Segments [Member] | Property, Liability and Casualty Insurance Product Line | |||||
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward] | |||||
Reinsurance Recoverable, Allowance for Credit Loss, Beginning Balance | 95 | 114 | 105 | 114 | |
Reinsurance Recoverable, Allowance for Credit Loss, Ending Balance | 96 | 108 | 96 | 108 | |
Uncollectible reinsurance | Operating Segments [Member] | Group Benefits | |||||
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward] | |||||
Reinsurance Recoverable, Allowance for Credit Loss, Beginning Balance | 1 | 1 | 1 | 0 | |
Reinsurance Recoverable, Allowance for Credit Loss, Ending Balance | 1 | 1 | 1 | 1 | |
Uncollectible reinsurance | Corporate, Non-Segment [Member] | |||||
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward] | |||||
Reinsurance Recoverable, Allowance for Credit Loss, Beginning Balance | 2 | 2 | 2 | 0 | |
Reinsurance Recoverable, Allowance for Credit Loss, Ending Balance | 2 | 2 | 2 | 2 | |
Disputes [Member] | |||||
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward] | |||||
Reinsurance Recoverable, Allowance for Credit Loss, Beginning Balance | 56 | 65 | 53 | 66 | |
Reinsurance Recoverable, Allowance for Credit Loss, Ending Balance | 56 | 57 | 56 | 57 | |
Disputes [Member] | Operating Segments [Member] | Property, Liability and Casualty Insurance Product Line | |||||
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward] | |||||
Reinsurance Recoverable, Allowance for Credit Loss, Beginning Balance | 56 | 65 | 53 | 66 | |
Reinsurance Recoverable, Allowance for Credit Loss, Ending Balance | 56 | 57 | 56 | 57 | |
Disputes [Member] | Operating Segments [Member] | Group Benefits | |||||
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward] | |||||
Reinsurance Recoverable, Allowance for Credit Loss, Beginning Balance | 0 | 0 | 0 | 0 | |
Reinsurance Recoverable, Allowance for Credit Loss, Ending Balance | 0 | 0 | 0 | 0 | |
Disputes [Member] | Corporate, Non-Segment [Member] | |||||
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward] | |||||
Reinsurance Recoverable, Allowance for Credit Loss, Beginning Balance | 0 | 0 | 0 | 0 | |
Reinsurance Recoverable, Allowance for Credit Loss, Ending Balance | $ 0 | $ 0 | 0 | 0 | |
Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-13 [Member] | |||||
Reinsurance Recoverable, Past Due [Line Items] | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 2 | ||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-13 [Member] | Operating Segments [Member] | Property, Liability and Casualty Insurance Product Line | |||||
Reinsurance Recoverable, Past Due [Line Items] | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 0 | ||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-13 [Member] | Operating Segments [Member] | Group Benefits | |||||
Reinsurance Recoverable, Past Due [Line Items] | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1 | ||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-13 [Member] | Corporate, Non-Segment [Member] | |||||
Reinsurance Recoverable, Past Due [Line Items] | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 1 | ||||
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | |||||
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward] | |||||
Reinsurance Recoverable, Allowance for Credit Loss, Beginning Balance | 55 | 50 | |||
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Operating Segments [Member] | Property, Liability and Casualty Insurance Product Line | |||||
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward] | |||||
Reinsurance Recoverable, Allowance for Credit Loss, Beginning Balance | 52 | 48 | |||
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Operating Segments [Member] | Group Benefits | |||||
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward] | |||||
Reinsurance Recoverable, Allowance for Credit Loss, Beginning Balance | 1 | 1 | |||
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Corporate, Non-Segment [Member] | |||||
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward] | |||||
Reinsurance Recoverable, Allowance for Credit Loss, Beginning Balance | $ 2 | $ 1 |
Reinsurance - Additional Inform
Reinsurance - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Reinsurance Recoverable, Allowance for Credit Loss [Abstract] | ||
Reinsurance, Loss on Uncollectible Accounts in Period, Amount | $ 0 | $ 0 |
Reserve for Unpaid Losses and_3
Reserve for Unpaid Losses and Loss Adjustment Expenses - P&C Liabilities for Unpaid Losses and Loss Adjustment Expense (Details) - USD ($) $ in Millions | 6 Months Ended | 25 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||||
Beginning liabilities for unpaid losses and loss adjustment expenses, gross | $ 37,855 | ||||
Less: payments | |||||
Ending liabilities for unpaid losses and loss adjustment expenses, gross | 38,702 | $ 38,702 | |||
Adverse Development Cover Navigators Group [Member] | |||||
Provision for unpaid losses and loss adjustment expense | |||||
Prior accident year development [1] | 354 | ||||
Deferred Revenue | 45 | $ 83 | |||
Property, Liability and Casualty Insurance Product Line | |||||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||||
Beginning liabilities for unpaid losses and loss adjustment expenses, gross | 29,622 | 28,261 | |||
Reinsurance and other recoverables | 5,905 | 5,427 | 5,905 | $ 5,725 | $ 5,275 |
Beginning liabilities for unpaid losses and loss adjustment expenses, net | 24,677 | 23,257 | 24,677 | $ 23,897 | $ 22,986 |
Provision for unpaid losses and loss adjustment expense | |||||
Current accident year | 3,838 | 3,962 | |||
Prior accident year development [1] | 80 | (245) | |||
Total provision for unpaid losses and loss adjustment expenses | 3,918 | 3,717 | |||
Less: payments | |||||
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid, Current Year | (864) | (778) | |||
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid, Prior Years | (2,222) | (2,575) | |||
Total payments | (3,086) | (3,353) | |||
Foreign currency adjustment | (7) | (10) | |||
Ending liabilities for unpaid losses and loss adjustment expenses, net | 24,677 | 23,257 | 24,677 | ||
Ending liabilities for unpaid losses and loss adjustment expenses, gross | 30,582 | 28,684 | $ 30,582 | ||
Property, Liability and Casualty Insurance Product Line | Adverse Development Cover Navigators Group [Member] | |||||
Provision for unpaid losses and loss adjustment expense | |||||
Deferred Revenue | $ 45 | $ 83 |
Reserve for Unpaid Losses and_4
Reserve for Unpaid Losses and Loss Adjustment Expenses - P&C Prior Accident Years Reserve Development (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reconciling Items | ||
Increase (Decrease) in Deferred Revenue | $ 45 | $ 83 |
Segment Reconciling Items | Catastrophe | ||
Prior accident year development [1] | (98) | (413) |
Accident and Health Insurance Product Line [Member] | Segment Reconciling Items | ||
Prior accident year development [1] | (83) | (38) |
Change in Workers Compensation Discount Including Accretion [Member] | Segment Reconciling Items | ||
Prior accident year development [1] | 18 | 18 |
General Liability [Member] | Segment Reconciling Items | ||
Prior accident year development [1] | 307 | 114 |
Marine | Segment Reconciling Items | ||
Prior accident year development [1] | 1 | 1 |
Package Business [Member] | Segment Reconciling Items | ||
Prior accident year development [1] | (46) | (6) |
Property Insurance [Member] | Commercial Lines | Segment Reconciling Items | ||
Prior accident year development [1] | (20) | (2) |
Property Insurance [Member] | Personal Lines | Segment Reconciling Items | ||
Prior accident year development [1] | 1 | 0 |
Professional Liability Insurance [Member] | Segment Reconciling Items | ||
Prior accident year development [1] | (7) | 5 |
Surety Product Line [Member] | Segment Reconciling Items | ||
Prior accident year development [1] | (14) | (10) |
Assumed reinsurance | Segment Reconciling Items | ||
Prior accident year development [1] | 0 | (7) |
Automobiles [Member] | Commercial Lines | Segment Reconciling Items | ||
Prior accident year development [1] | 0 | 27 |
Automobiles [Member] | Personal Lines | Segment Reconciling Items | ||
Prior accident year development [1] | (43) | (21) |
Uncollectible reinsurance | Segment Reconciling Items | ||
Prior accident year development [1] | (10) | (2) |
Insurance, Other [Member] | Segment Reconciling Items | ||
Prior accident year development [1] | 29 | 6 |
Property, Liability and Casualty Insurance Product Line | ||
Prior accident year development [1] | 80 | (245) |
Prior accident year development before change in deferred gain | $ 35 | $ (328) |
Reserve for Unpaid Losses and_5
Reserve for Unpaid Losses and Loss Adjustment Expenses - PC Additional Information (Details) - USD ($) $ in Millions | May 23, 2019 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2016 | Jun. 30, 2021 | Dec. 31, 2020 |
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||||
us-gaap_SupplementalInformationForPropertyCasualtyInsuranceUnderwritersPriorYearClaimsAndClaimsAdjustmentExpense_BSASettlement | $ 650 | ||||||
Reinsurance Recoverables, Gross | 6,316 | $ 6,316 | $ 6,119 | ||||
Abuse Claims | General Liability [Member] | |||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||||
Prior accident year development [1] | $ 102 | ||||||
PG&E | |||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||||
Former Gain Contingency, Recognized in Current Period | $ 289 | $ 289 | |||||
Adverse Development Cover Navigators Group [Member] | |||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||||
Prior accident year development [1] | 354 | ||||||
Payments for Reinsurance | $ 91 | ||||||
Policyholder Benefits and Claims Incurred, Assumed | 254 | ||||||
Change in Deferred Gain on Retroactive Reinsurance | 163 | 163 | |||||
Reinsurance Recoverables, Gross | 254 | 254 | |||||
Increase (Decrease) in Deferred Revenue | 45 | $ 83 | |||||
Adverse Development Cover Navigators Group [Member] | Remaining [Member] | |||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||||
Maximum adverse loss development to be ceded under agreement | 46 | ||||||
Adverse Development Cover Navigators Group [Member] | Retention Layer for Reserve for the Covered Liabilities as of the Inception Date [Member] | |||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||||
Reinsurance Retention Policy, Amount Retained | 1,816 | ||||||
Adverse Development Cover Navigators Group [Member] | Retention Layer Above Reserve for the Covered Liabilities as of the Inception Date [Member] | |||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||||
Reinsurance Retention Policy, Amount Retained | 100 | ||||||
Asbestos and Environmental | |||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||||
Payments for Reinsurance | $ 650 | ||||||
Reinsurance Retention Policy, Amount Retained | $ 1,700 | ||||||
Asbestos and Environmental | Asbestos and Environmental | |||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||||
Policyholder Benefits and Claims Incurred, Assumed | 860 | ||||||
Change in Deferred Gain on Retroactive Reinsurance | 210 | $ 210 | |||||
Asbestos and Environmental | Remaining [Member] | Asbestos and Environmental | |||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||||
Maximum adverse loss development to be ceded under agreement | 640 | ||||||
Maximum | Adverse Development Cover Navigators Group [Member] | |||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||||
Maximum adverse loss development to be ceded under agreement | 300 | ||||||
Maximum | Asbestos and Environmental | |||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||||
Maximum adverse loss development to be ceded under agreement | $ 1,500 |
Reserve for Unpaid Losses and_6
Reserve for Unpaid Losses and Loss Adjustment Expenses - GB Liabilities for Unpaid Losses and Loss Adjustment Expenses (Details) - USD ($) $ in Millions | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||||
Beginning liabilities for unpaid losses and loss adjustment expenses, gross | $ 37,855 | ||||
Less: payments | |||||
Ending liabilities for unpaid losses and loss adjustment expenses, gross | 38,702 | ||||
Group Insurance Policy [Member] | |||||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||||
Beginning liabilities for unpaid losses and loss adjustment expenses, gross | 8,233 | $ 8,256 | |||
Reinsurance recoverables [1] | 250 | 244 | $ 237 | $ 246 | |
Beginning liabilities for unpaid losses and loss adjustment expenses, net | 7,996 | 8,010 | |||
Provision for unpaid losses and loss adjustment expense | |||||
Current incurral year | 2,464 | 2,297 | |||
Prior year's discount accretion | 106 | 111 | |||
Prior incurral year development [2] | (282) | (315) | |||
Total provision for unpaid losses and loss adjustment expenses | 2,288 | 2,093 | |||
Less: payments | |||||
Current incurral year | (1,000) | (871) | |||
Prior incurral years | (1,414) | (1,290) | |||
Total payments | (2,414) | (2,161) | |||
Beginning liabilities for unpaid losses and loss adjustment expenses, net | 7,870 | 7,942 | $ 7,996 | $ 8,010 | |
Ending liabilities for unpaid losses and loss adjustment expenses, gross | 8,120 | 8,186 | |||
Group Insurance Policy [Member] | Disability Insurance Policy [Member] | |||||
Provision for unpaid losses and loss adjustment expense | |||||
Prior incurral year development [2] | 240 | 230 | |||
Group Insurance Policy [Member] | group life term, disability and accident [Member] | |||||
Provision for unpaid losses and loss adjustment expense | |||||
Prior incurral year development [2] | 30 | 65 | |||
Group Insurance Policy [Member] | Accident and Health Insurance Product Line [Member] | |||||
Provision for unpaid losses and loss adjustment expense | |||||
Prior incurral year development [2] | 10 | 20 | |||
Group Insurance Policy [Member] | Other Operating Income (Expense) [Member] | |||||
Provision for unpaid losses and loss adjustment expense | |||||
Total provision for unpaid losses and loss adjustment expenses | $ 87 | $ 89 | |||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Reinsurance Recoverable Including Reinsurance Premium Paid [Member] | Group Insurance Policy [Member] | Accounting Standards Update 2016-13 [Member] | |||||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||||
Reinsurance recoverables [1] | $ (1) |
Reserve for Unpaid Losses and_7
Reserve for Unpaid Losses and Loss Adjustment Expenses - GB Additional information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
us-gaap_SupplementalInformationForPropertyCasualtyInsuranceUnderwritersPriorYearClaimsAndClaimsAdjustmentExpense_BSASettlement | $ 650 | |
Group Benefits | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Prior incurral year development [2] | (282) | $ (315) |
Group Benefits | group life term, disability and accident [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Prior incurral year development [2] | 30 | 65 |
Group Benefits | Accident and Health Insurance Product Line [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Prior incurral year development [2] | $ 10 | $ 20 |
Reserves for Future Policy Be_2
Reserves for Future Policy Benefits (Details) - Annuaitization Benefit - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | ||
Beginning liability balance | $ 638 | $ 635 |
Incurred | 33 | 53 |
Paid | 54 | 42 |
Change in unrealized investment gains and losses | (6) | 6 |
Ending liability balance | 611 | 652 |
Movement in Liabilities for Guarantees on Long-Duration Contracts, Reinsurance Recoverable [Roll Forward] | ||
Ending reinsurance recoverable asset | $ 24 | $ 27 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Tax provision at U.S. federal statutory rate | $ 233 | $ 125 | $ 297 | $ 197 |
Tax-exempt interest | (10) | (12) | (21) | (24) |
Increase in deferred tax valuation allowance | (6) | (7) | (7) | (13) |
Effective Income Tax Rate Reconciliation, Disposition of Business, Amount | (5) | 0 | (5) | 0 |
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | (7) | 0 | (7) | 0 |
Other | 12 | (4) | 12 | (9) |
Income tax expense | $ 205 | $ 124 | $ 259 | $ 195 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | ||||||
Unrecognized Tax Benefits | $ 15 | $ 14 | $ 15 | $ 14 | $ 15 | $ 14 |
Decrease in Unrecognized Tax Benefits is Reasonably Possible | 5 | 5 | ||||
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | (7) | $ 0 | (7) | $ 0 | ||
Foreign Tax Authority [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Deferred Tax Assets, Operating Loss Carryforwards | 17 | 17 | ||||
Deferred Tax Assets, Valuation Allowance | $ 3 | $ 3 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2016 | |
Asbestos and Environmental | ||
Loss Contingencies [Line Items] | ||
Reinsurance Retention Policy, Amount Retained | $ 1,700 | |
Asbestos Issue | ||
Loss Contingencies [Line Items] | ||
Liability for unpaid losses and loss adjustment expenses, at undiscounted amounts | $ 646 | |
Environmental Issue | ||
Loss Contingencies [Line Items] | ||
Liability for unpaid losses and loss adjustment expenses, at undiscounted amounts | 74 | |
Asbestos and Environmental | Asbestos and Environmental | ||
Loss Contingencies [Line Items] | ||
Change in Deferred Gain on Retroactive Reinsurance | 210 | |
Reinsurance Retention Policy, Excess Retention, Amount Reinsured | 860 | |
Asbestos and Environmental | Asbestos and Environmental | Remaining [Member] | ||
Loss Contingencies [Line Items] | ||
Maximum adverse loss development to be ceded under agreement | 640 | |
Maximum | Asbestos and Environmental | ||
Loss Contingencies [Line Items] | ||
Maximum adverse loss development to be ceded under agreement | $ 1,500 |
Commitments and Contingencies_2
Commitments and Contingencies - Derivative Instruments (Details) $ in Millions | Jun. 30, 2021USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative, Net Liability Position, Aggregate Fair Value | $ 59 |
Collateral Already Posted, Aggregate Fair Value | 58 |
Additional Collateral, Aggregate Fair Value | $ 0 |
Equity Equity Repurchase Progra
Equity Equity Repurchase Program (Details) - USD ($) shares in Millions, $ in Millions | 1 Months Ended | 6 Months Ended | |||
Jul. 27, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Apr. 01, 2021 | Jan. 01, 2021 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Value of shares acquired | $ 691 | $ 150 | |||
Number of shares acquired | 11 | 2.7 | |||
Stock repurchase authorization amount | $ 2,500 | $ 1,500 | |||
Subsequent Event [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Value of shares acquired | $ 116 | ||||
Number of shares acquired | 1.9 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income Loss - AOCI Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | $ 18,556 | |||
Other comprehensive income (loss), net of tax | $ 306 | $ 1,436 | (600) | $ 427 |
Ending balance | 18,244 | 17,072 | 18,244 | 17,072 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 1,909 | 627 | 2,834 | 1,684 |
OCI before reclassifications | 337 | 1,469 | (585) | 454 |
Amounts reclassified from AOCI | (42) | (41) | (45) | (83) |
Other comprehensive income (loss), net of tax | 295 | 1,428 | (630) | 371 |
Ending balance | 2,204 | 2,055 | 2,204 | 2,055 |
AOCI, Gain (Loss), Debt Securities, Available-for-sale, with Allowance for Credit Loss, Parent | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | (2) | (2) | (2) | (3) |
OCI before reclassifications | 0 | 0 | 0 | 1 |
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 1 |
Ending balance | (2) | (2) | (2) | (2) |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 17 | 53 | 12 | 9 |
OCI before reclassifications | 1 | 0 | 13 | 47 |
Amounts reclassified from AOCI | (6) | (5) | (13) | (8) |
Other comprehensive income (loss), net of tax | (5) | (5) | 0 | 39 |
Ending balance | 12 | 48 | 12 | 48 |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 44 | 26 | 43 | 34 |
OCI before reclassifications | 2 | 1 | 3 | (7) |
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | 2 | 1 | 3 | (7) |
Ending balance | 46 | 27 | 46 | 27 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | (1,704) | (1,661) | (1,717) | (1,672) |
OCI before reclassifications | (1) | 0 | (1) | (1) |
Amounts reclassified from AOCI | 15 | 12 | 28 | 24 |
Other comprehensive income (loss), net of tax | 14 | 12 | 27 | 23 |
Ending balance | (1,690) | (1,649) | (1,690) | (1,649) |
AOCI Attributable to Parent [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 264 | (957) | 1,170 | 52 |
OCI before reclassifications | 339 | 1,470 | (570) | 494 |
Amounts reclassified from AOCI | (33) | (34) | (30) | (67) |
Other comprehensive income (loss), net of tax | 306 | 1,436 | (600) | 427 |
Ending balance | $ 570 | $ 479 | $ 570 | $ 479 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income Loss - Reclassifications from AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net Investment Income | $ 581 | $ 339 | $ 1,090 | $ 798 |
Interest Expense | 57 | 57 | 114 | 121 |
Income before income taxes | 1,110 | 592 | 1,413 | 936 |
Income tax expense | 205 | 124 | 259 | 195 |
Net income | 905 | 468 | 1,154 | 741 |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net income | 33 | 34 | 30 | 67 |
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Gain on Securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net realized capital gains | 53 | 52 | 57 | 105 |
Income before income taxes | 53 | 52 | 57 | 105 |
Income tax expense | 11 | 11 | 12 | 22 |
Net income | 42 | 41 | 45 | 83 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Income before income taxes | 8 | 6 | 17 | 10 |
Income tax expense | 2 | 1 | 4 | 2 |
Net income | 6 | 5 | 13 | 8 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | Interest rate swaps | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net Investment Income | 10 | 7 | 20 | 10 |
Interest Expense | (3) | (2) | (5) | (2) |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | Currency Swap [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net Investment Income | 1 | 1 | 2 | 2 |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of prior service credit | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Insurance operating costs and other expenses | 1 | 1 | 3 | 3 |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of actuarial loss | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Insurance operating costs and other expenses | (20) | (16) | (39) | (33) |
Reclassification out of Accumulated Other Comprehensive Income | Pension and Other Postretirement Plan Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Income before income taxes | (19) | (15) | (36) | (30) |
Income tax expense | (4) | (3) | (8) | (6) |
Net income | $ (15) | $ (12) | $ (28) | $ (24) |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Cost (Benefit) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 1 | $ 1 | $ 2 | $ 2 |
Interest cost | (23) | (32) | (47) | (64) |
Expected return on plan assets | (51) | (54) | (102) | (108) |
Amortization of prior service credit | 0 | 0 | 0 | 0 |
Amortization of actuarial loss | (18) | (15) | (35) | (30) |
Net periodic cost (benefit) | (9) | (6) | (18) | (12) |
Other Postretirement Benefits Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | (1) | (1) | (2) | (3) |
Expected return on plan assets | (1) | (1) | (2) | (2) |
Amortization of prior service credit | (1) | (1) | (3) | (3) |
Amortization of actuarial loss | (2) | (1) | (4) | (3) |
Net periodic cost (benefit) | $ 1 | $ 0 | $ 1 | $ 1 |
Restructuring and Other Costs,
Restructuring and Other Costs, Before Tax (Details) - Other Operating Income (Expense) [Member] - Hartford Next Program $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2021USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | $ 0 | $ 11 | $ 115 |
Restructuring and Related Cost, Expected Cost | 152 | 152 | 152 |
Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | (9) | (9) | 64 |
Restructuring and Related Cost, Expected Cost | 64 | 64 | 64 |
Information Technology | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | 2 | 4 | 6 |
Restructuring and Related Cost, Expected Cost | 27 | 27 | 27 |
Professional fees and other expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | 7 | 16 | 45 |
Restructuring and Related Cost, Expected Cost | $ 61 | $ 61 | $ 61 |
Accrued Restructuring and Other
Accrued Restructuring and Other Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other costs | $ 0 | $ 0 | $ 11 | $ 0 |
Hartford Next Program | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Payments for Restructuring | (27) | |||
Employee Severance | Hartford Next Program | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Payments for Restructuring | (8) | |||
Information Technology | Hartford Next Program | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Payments for Restructuring | (4) | |||
Professional fees and other expenses | Hartford Next Program | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Payments for Restructuring | (15) | |||
Other Operating Income (Expense) [Member] | Hartford Next Program | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other costs | 11 | |||
Other Operating Income (Expense) [Member] | Employee Severance | Hartford Next Program | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other costs | (9) | |||
Other Operating Income (Expense) [Member] | Information Technology | Hartford Next Program | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other costs | 4 | |||
Other Operating Income (Expense) [Member] | Professional fees and other expenses | Hartford Next Program | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other costs | 16 | |||
Other liabilities | Hartford Next Program | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve, Beginning Balance | 54 | |||
Restructuring Reserve, Ending Balance | 38 | 38 | ||
Other liabilities | Employee Severance | Hartford Next Program | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve, Beginning Balance | 54 | |||
Restructuring Reserve, Ending Balance | 37 | 37 | ||
Other liabilities | Information Technology | Hartford Next Program | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve, Beginning Balance | 0 | |||
Restructuring Reserve, Ending Balance | 0 | 0 | ||
Other liabilities | Professional fees and other expenses | Hartford Next Program | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve, Beginning Balance | 0 | |||
Restructuring Reserve, Ending Balance | $ 1 | $ 1 |
Restructuring and Related Act_3
Restructuring and Related Activities (Details) - Other Operating Income (Expense) [Member] - Hartford Next Program $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2021USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | $ 152 | $ 152 | $ 152 |
Restructuring and Related Cost, Incurred Cost | 0 | 11 | 115 |
Professional fees and other expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 61 | 61 | 61 |
Restructuring and Related Cost, Incurred Cost | 7 | 16 | 45 |
Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 64 | 64 | 64 |
Restructuring and Related Cost, Incurred Cost | (9) | (9) | 64 |
Information Technology | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 27 | 27 | 27 |
Restructuring and Related Cost, Incurred Cost | $ 2 | $ 4 | $ 6 |