☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 36-6169860 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
151 N. Franklin | 60606 | ||||||||||
Chicago, | Illinois | (Zip Code) | |||||||||
(Address of principal executive offices) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common Stock, Par value $2.50 | "CNA" | New York Stock Exchange | ||||||||||||
Chicago Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | ☐ | Emerging growth company | ☐ |
Item Number | Page Number | |||||||
PART I | ||||||||
1. | ||||||||
2. | ||||||||
3. | ||||||||
4. | ||||||||
PART II | ||||||||
1. | ||||||||
1A. | ||||||||
2. | ||||||||
6. |
Item Number | Page Number | |
1. | ||
2. | ||
3. | ||
4. | ||
PART II | ||
1. | ||
1A. | ||
6. |
Periods ended September 30 | Three Months | Nine Months | |||||||||||||
(In millions, except per share data) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Revenues | |||||||||||||||
Net earned premiums | $ | 1,953 | $ | 1,890 | $ | 5,672 | $ | 5,517 | |||||||
Net investment income | 517 | 487 | 1,380 | 1,573 | |||||||||||
Net investment gains (losses) | 27 | 7 | (120 | ) | 20 | ||||||||||
Non-insurance warranty revenue | 317 | 292 | 926 | 858 | |||||||||||
Other revenues | 6 | 9 | 19 | 22 | |||||||||||
Total revenues | 2,820 | 2,685 | 7,877 | 7,990 | |||||||||||
Claims, Benefits and Expenses | |||||||||||||||
Insurance claims and policyholders’ benefits | 1,616 | 1,614 | 4,683 | 4,323 | |||||||||||
Amortization of deferred acquisition costs | 360 | 345 | 1,046 | 1,025 | |||||||||||
Non-insurance warranty expense | 293 | 278 | 859 | 801 | |||||||||||
Other operating expenses | 269 | 289 | 852 | 853 | |||||||||||
Interest | 32 | 32 | 94 | 100 | |||||||||||
Total claims, benefits and expenses | 2,570 | 2,558 | 7,534 | 7,102 | |||||||||||
Income before income tax | 250 | 127 | 343 | 888 | |||||||||||
Income tax expense | (37 | ) | (20 | ) | (40 | ) | (161 | ) | |||||||
Net income | $ | 213 | $ | 107 | $ | 303 | $ | 727 | |||||||
Basic earnings per share | $ | 0.79 | $ | 0.39 | $ | 1.12 | $ | 2.68 | |||||||
Diluted earnings per share | $ | 0.79 | $ | 0.39 | $ | 1.11 | $ | 2.67 | |||||||
Weighted Average Outstanding Common Stock and Common Stock Equivalents | |||||||||||||||
Basic | 271.7 | 271.6 | 271.6 | 271.6 | |||||||||||
Diluted | 272.3 | 272.6 | 272.3 | 272.5 |
Three months ended March 31 | |||||||||||
(In millions, except per share data) | 2021 | 2020 | |||||||||
Revenues | |||||||||||
Net earned premiums | $ | 1,962 | $ | 1,869 | |||||||
Net investment income | 504 | 329 | |||||||||
Net investment gains (losses) | 57 | (216) | |||||||||
Non-insurance warranty revenue | 338 | 301 | |||||||||
Other revenues | 5 | 8 | |||||||||
Total revenues | 2,866 | 2,291 | |||||||||
Claims, Benefits and Expenses | |||||||||||
Insurance claims and policyholders’ benefits | 1,506 | 1,425 | |||||||||
Amortization of deferred acquisition costs | 359 | 344 | |||||||||
Non-insurance warranty expense | 311 | 281 | |||||||||
Other operating expenses | 284 | 299 | |||||||||
Interest | 28 | 31 | |||||||||
Total claims, benefits and expenses | 2,488 | 2,380 | |||||||||
Income (loss) before income tax | 378 | (89) | |||||||||
Income tax (expense) benefit | (66) | 28 | |||||||||
Net income (loss) | $ | 312 | $ | (61) | |||||||
Basic earnings (loss) per share | $ | 1.15 | $ | (0.23) | |||||||
Diluted earnings (loss) per share | $ | 1.14 | $ | (0.23) | |||||||
Weighted Average Outstanding Common Stock and Common Stock Equivalents | |||||||||||
Basic | 271.9 | 271.5 | |||||||||
Diluted | 272.9 | 271.5 |
Periods ended September 30 | Three Months | Nine Months | ||||||||||||||||||||||||
Three months ended March 31 | Three months ended March 31 | |||||||||||||||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | (In millions) | 2021 | 2020 | |||||||||||||||||||
Comprehensive Income | ||||||||||||||||||||||||||
Net income | $ | 213 | $ | 107 | $ | 303 | $ | 727 | ||||||||||||||||||
Other Comprehensive Income, net of tax | ||||||||||||||||||||||||||
Comprehensive Loss | Comprehensive Loss | |||||||||||||||||||||||||
Net income (loss) | Net income (loss) | $ | 312 | $ | (61) | |||||||||||||||||||||
Other Comprehensive Loss, net of tax | Other Comprehensive Loss, net of tax | |||||||||||||||||||||||||
Changes in: | Changes in: | |||||||||||||||||||||||||
Net unrealized gains and losses on investments with an allowance for credit losses | 6 | 0 | (3 | ) | 0 | Net unrealized gains and losses on investments with an allowance for credit losses | 0 | (11) | ||||||||||||||||||
Net unrealized gains and losses on other investments | 207 | 41 | 354 | 1,007 | Net unrealized gains and losses on other investments | (627) | (1,044) | |||||||||||||||||||
Net unrealized gains and losses on investments | 213 | 41 | 351 | 1,007 | Net unrealized gains and losses on investments | (627) | (1,055) | |||||||||||||||||||
Foreign currency translation adjustment | 37 | (29 | ) | (16 | ) | (12 | ) | Foreign currency translation adjustment | 2 | (77) | ||||||||||||||||
Pension and postretirement benefits | 7 | 7 | 25 | 22 | Pension and postretirement benefits | 9 | 11 | |||||||||||||||||||
Other comprehensive income, net of tax | 257 | 19 | 360 | 1,017 | ||||||||||||||||||||||
Total comprehensive income | $ | 470 | $ | 126 | $ | 663 | $ | 1,744 | ||||||||||||||||||
Other comprehensive loss, net of tax | Other comprehensive loss, net of tax | (616) | (1,121) | |||||||||||||||||||||||
Total comprehensive loss | Total comprehensive loss | $ | (304) | $ | (1,182) |
(In millions, except share data) | September 30, 2020 (Unaudited) | December 31, 2019 | (In millions, except share data) | March 31, 2021 (Unaudited) | December 31, 2020 | |||||||||||||
Assets | Assets | |||||||||||||||||
Investments: | Investments: | |||||||||||||||||
Fixed maturity securities at fair value (amortized cost of $38,969 and $38,126, less allowance for credit loss of $47 and $-) | $ | 43,901 | $ | 42,207 | ||||||||||||||
Equity securities at fair value (cost of $927 and $820) | 919 | 865 | ||||||||||||||||
Fixed maturity securities at fair value (amortized cost of $39,291 and $38,953, less allowance for credit loss of $43 and $40) | Fixed maturity securities at fair value (amortized cost of $39,291 and $38,953, less allowance for credit loss of $43 and $40) | $ | 43,579 | $ | 44,631 | |||||||||||||
Equity securities at fair value (cost of $927 and $941) | Equity securities at fair value (cost of $927 and $941) | 984 | 992 | |||||||||||||||
Limited partnership investments | 1,567 | 1,752 | Limited partnership investments | 1,654 | 1,619 | |||||||||||||
Other invested assets | 69 | 65 | Other invested assets | 77 | 76 | |||||||||||||
Mortgage loans (less allowance for uncollectible receivables of $21 and $-) | 1,088 | 994 | ||||||||||||||||
Mortgage loans (less allowance for uncollectible receivables of $26 and $26) | Mortgage loans (less allowance for uncollectible receivables of $26 and $26) | 1,043 | 1,068 | |||||||||||||||
Short term investments | 1,462 | 1,861 | Short term investments | 1,334 | 1,907 | |||||||||||||
Total investments | 49,006 | 47,744 | Total investments | 48,671 | 50,293 | |||||||||||||
Cash | 442 | 242 | Cash | 588 | 419 | |||||||||||||
Reinsurance receivables (less allowance for uncollectible receivables of $24 and $25) | 4,370 | 4,179 | ||||||||||||||||
Insurance receivables (less allowance for uncollectible receivables of $32 and $32) | 2,527 | 2,449 | ||||||||||||||||
Reinsurance receivables (less allowance for uncollectible receivables of $22 and $21) | Reinsurance receivables (less allowance for uncollectible receivables of $22 and $21) | 5,111 | 4,457 | |||||||||||||||
Insurance receivables (less allowance for uncollectible receivables of $33 and $33) | Insurance receivables (less allowance for uncollectible receivables of $33 and $33) | 2,652 | 2,607 | |||||||||||||||
Accrued investment income | 401 | 395 | Accrued investment income | 399 | 380 | |||||||||||||
Deferred acquisition costs | 697 | 662 | Deferred acquisition costs | 741 | 708 | |||||||||||||
Deferred income taxes | 144 | 199 | Deferred income taxes | 197 | 66 | |||||||||||||
Property and equipment at cost (less accumulated depreciation of $224 and $215) | 256 | 282 | ||||||||||||||||
Property and equipment at cost (less accumulated depreciation of $243 and $231) | Property and equipment at cost (less accumulated depreciation of $243 and $231) | 244 | 252 | |||||||||||||||
Goodwill | 146 | 147 | Goodwill | 148 | 148 | |||||||||||||
Deferred non-insurance warranty acquisition expense | 2,998 | 2,840 | Deferred non-insurance warranty acquisition expense | 3,149 | 3,068 | |||||||||||||
Other assets (includes $- and $21 due from Loews Corporation) | 1,788 | 1,473 | ||||||||||||||||
Other assets | Other assets | 1,813 | 1,628 | |||||||||||||||
Total assets | $ | 62,775 | $ | 60,612 | Total assets | $ | 63,713 | $ | 64,026 | |||||||||
Liabilities | Liabilities | |||||||||||||||||
Insurance reserves: | Insurance reserves: | |||||||||||||||||
Claim and claim adjustment expenses | $ | 22,534 | $ | 21,720 | Claim and claim adjustment expenses | $ | 23,056 | $ | 22,706 | |||||||||
Unearned premiums | 5,020 | 4,583 | Unearned premiums | 5,319 | 5,119 | |||||||||||||
Future policy benefits | 12,978 | 12,311 | Future policy benefits | 12,772 | 13,318 | |||||||||||||
Long term debt | 2,776 | 2,679 | Long term debt | 2,777 | 2,776 | |||||||||||||
Deferred non-insurance warranty revenue | 3,951 | 3,779 | Deferred non-insurance warranty revenue | 4,119 | 4,023 | |||||||||||||
Other liabilities (includes $47 and $21 due to Loews Corporation) | 3,495 | 3,325 | ||||||||||||||||
Other liabilities (includes $130 and $89 due to Loews Corporation) | Other liabilities (includes $130 and $89 due to Loews Corporation) | 3,581 | 3,377 | |||||||||||||||
Total liabilities | 50,754 | 48,397 | Total liabilities | 51,624 | 51,319 | |||||||||||||
Commitments and contingencies (Notes C and F) | Commitments and contingencies (Notes C and F) | 0 | ||||||||||||||||
Stockholders' Equity | Stockholders' Equity | |||||||||||||||||
Common stock ($2.50 par value; 500,000,000 shares authorized; 273,040,243 shares issued; 271,387,058 and 271,412,591 shares outstanding) | 683 | 683 | ||||||||||||||||
Common stock ($2.50 par value; 500,000,000 shares authorized; 273,040,243 shares issued; 271,644,861 and 271,391,603 shares outstanding) | Common stock ($2.50 par value; 500,000,000 shares authorized; 273,040,243 shares issued; 271,644,861 and 271,391,603 shares outstanding) | 683 | 683 | |||||||||||||||
Additional paid-in capital | 2,202 | 2,203 | Additional paid-in capital | 2,194 | 2,211 | |||||||||||||
Retained earnings | 8,796 | 9,348 | Retained earnings | 9,084 | 9,081 | |||||||||||||
Accumulated other comprehensive income | 411 | 51 | Accumulated other comprehensive income | 187 | 803 | |||||||||||||
Treasury stock (1,653,185 and 1,627,652 shares), at cost | (71 | ) | (70 | ) | ||||||||||||||
Treasury stock (1,395,382 and 1,648,640 shares), at cost | Treasury stock (1,395,382 and 1,648,640 shares), at cost | (59) | (71) | |||||||||||||||
Total stockholders’ equity | 12,021 | 12,215 | Total stockholders’ equity | 12,089 | 12,707 | |||||||||||||
Total liabilities and stockholders' equity | $ | 62,775 | $ | 60,612 | Total liabilities and stockholders' equity | $ | 63,713 | $ | 64,026 |
Nine months ended September 30 | ||||||||||||||||||
Three months ended March 31 | Three months ended March 31 | |||||||||||||||||
(In millions) | 2020 | 2019 | (In millions) | 2021 | 2020 | |||||||||||||
Cash Flows from Operating Activities | Cash Flows from Operating Activities | |||||||||||||||||
Net income | $ | 303 | $ | 727 | ||||||||||||||
Adjustments to reconcile net income to net cash flows provided by operating activities: | ||||||||||||||||||
Deferred income tax benefit | (41 | ) | (72 | ) | ||||||||||||||
Net income (loss) | Net income (loss) | $ | 312 | $ | (61) | |||||||||||||
Adjustments to reconcile net income (loss) to net cash flows provided by operating activities: | Adjustments to reconcile net income (loss) to net cash flows provided by operating activities: | |||||||||||||||||
Deferred income tax expense (benefit) | Deferred income tax expense (benefit) | 30 | (37) | |||||||||||||||
Trading portfolio activity | 2 | (1 | ) | Trading portfolio activity | (8) | 7 | ||||||||||||
Net investment losses (gains) | 120 | (20 | ) | |||||||||||||||
Net investment (gains) losses | Net investment (gains) losses | (57) | 216 | |||||||||||||||
Equity method investees | 12 | 48 | Equity method investees | 14 | 98 | |||||||||||||
Net amortization of investments | (51 | ) | (64 | ) | Net amortization of investments | (24) | (15) | |||||||||||
Depreciation and amortization | 46 | 52 | Depreciation and amortization | 14 | 16 | |||||||||||||
Changes in: | Changes in: | |||||||||||||||||
Receivables, net | (271 | ) | 207 | Receivables, net | (700) | (229) | ||||||||||||
Accrued investment income | (6 | ) | (18 | ) | Accrued investment income | (19) | (8) | |||||||||||
Deferred acquisition costs | (36 | ) | (37 | ) | Deferred acquisition costs | (32) | (27) | |||||||||||
Insurance reserves | 1,479 | 337 | Insurance reserves | 605 | 510 | |||||||||||||
Other, net | (149 | ) | (179 | ) | Other, net | (53) | (258) | |||||||||||
Net cash flows provided by operating activities | 1,408 | 980 | Net cash flows provided by operating activities | 82 | 212 | |||||||||||||
Cash Flows from Investing Activities | Cash Flows from Investing Activities | |||||||||||||||||
Dispositions: | Dispositions: | |||||||||||||||||
Fixed maturity securities - sales | 5,023 | 4,872 | Fixed maturity securities - sales | 907 | 823 | |||||||||||||
Fixed maturity securities - maturities, calls and redemptions | 2,706 | 2,116 | Fixed maturity securities - maturities, calls and redemptions | 1,084 | 799 | |||||||||||||
Equity securities | 275 | 171 | Equity securities | 119 | 98 | |||||||||||||
Limited partnerships | 281 | 417 | Limited partnerships | 49 | 204 | |||||||||||||
Mortgage loans | 41 | 109 | Mortgage loans | 42 | 15 | |||||||||||||
Purchases: | Purchases: | |||||||||||||||||
Fixed maturity securities | (8,466 | ) | (7,053 | ) | Fixed maturity securities | (2,203) | (1,818) | |||||||||||
Equity securities | (373 | ) | (140 | ) | Equity securities | (81) | (220) | |||||||||||
Limited partnerships | (144 | ) | (167 | ) | Limited partnerships | (61) | (32) | |||||||||||
Mortgage loans | (154 | ) | (193 | ) | Mortgage loans | (16) | (61) | |||||||||||
Change in other investments | (4 | ) | (8 | ) | Change in other investments | (2) | (6) | |||||||||||
Change in short term investments | 403 | (180 | ) | Change in short term investments | 573 | 1,267 | ||||||||||||
Purchases of property and equipment | (16 | ) | (20 | ) | Purchases of property and equipment | (3) | (3) | |||||||||||
Other, net | 21 | 16 | Other, net | 0 | 21 | |||||||||||||
Net cash flows used by investing activities | (407 | ) | (60 | ) | ||||||||||||||
Net cash flows provided by investing activities | Net cash flows provided by investing activities | 408 | 1,087 | |||||||||||||||
Cash Flows from Financing Activities | Cash Flows from Financing Activities | |||||||||||||||||
Dividends paid to common stockholders | (850 | ) | (834 | ) | Dividends paid to common stockholders | (310) | (649) | |||||||||||
Proceeds from the issuance of debt | 495 | 496 | ||||||||||||||||
Repayment of debt | (419 | ) | (520 | ) | ||||||||||||||
Purchase of treasury stock | (18 | ) | (18 | ) | Purchase of treasury stock | (3) | (18) | |||||||||||
Other, net | (9 | ) | (11 | ) | Other, net | (8) | (8) | |||||||||||
Net cash flows used by financing activities | (801 | ) | (887 | ) | Net cash flows used by financing activities | (321) | (675) | |||||||||||
Effect of foreign exchange rate changes on cash | 0 | (3 | ) | Effect of foreign exchange rate changes on cash | 0 | (9) | ||||||||||||
Net change in cash | 200 | 30 | Net change in cash | 169 | 615 | |||||||||||||
Cash, beginning of year | 242 | 310 | Cash, beginning of year | 419 | 242 | |||||||||||||
Cash, end of period | $ | 442 | $ | 340 | Cash, end of period | $ | 588 | $ | 857 |
Periods ended September 30 | Three Months | Nine Months | ||||||||||||||||||||||||
Three months ended March 31 | Three months ended March 31 | |||||||||||||||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | (In millions) | 2021 | 2020 | |||||||||||||||||||
Common Stock | Common Stock | |||||||||||||||||||||||||
Balance, beginning of period | $ | 683 | $ | 683 | $ | 683 | $ | 683 | Balance, beginning of period | $ | 683 | $ | 683 | |||||||||||||
Balance, end of period | 683 | 683 | 683 | 683 | Balance, end of period | 683 | 683 | |||||||||||||||||||
Additional Paid-in Capital | Additional Paid-in Capital | |||||||||||||||||||||||||
Balance, beginning of period | 2,196 | 2,190 | 2,203 | 2,192 | Balance, beginning of period | 2,211 | 2,203 | |||||||||||||||||||
Stock-based compensation | 6 | 7 | (1 | ) | 5 | Stock-based compensation | (17) | (16) | ||||||||||||||||||
Balance, end of period | 2,202 | 2,197 | 2,202 | 2,197 | Balance, end of period | 2,194 | 2,187 | |||||||||||||||||||
Retained Earnings | Retained Earnings | |||||||||||||||||||||||||
Balance, beginning of period, as previously reported | 8,683 | 9,159 | 9,348 | 9,277 | Balance, beginning of period, as previously reported | 9,081 | 9,348 | |||||||||||||||||||
Cumulative effect adjustments from changes in accounting guidance, net of tax | — | — | (5 | ) | — | Cumulative effect adjustments from changes in accounting guidance, net of tax | 0 | (5) | ||||||||||||||||||
Balance, beginning of period, as adjusted | 8,683 | 9,159 | 9,343 | 9,277 | Balance, beginning of period, as adjusted | 9,081 | 9,343 | |||||||||||||||||||
Dividends to common stockholders ($0.37, $0.35, $3.11 and $3.05 per share) | (100 | ) | (95 | ) | (850 | ) | (833 | ) | ||||||||||||||||||
Net income | 213 | 107 | 303 | 727 | ||||||||||||||||||||||
Dividends to common stockholders ($1.13 and $2.37 per share) | Dividends to common stockholders ($1.13 and $2.37 per share) | (309) | (648) | |||||||||||||||||||||||
Net income (loss) | Net income (loss) | 312 | (61) | |||||||||||||||||||||||
Balance, end of period | 8,796 | 9,171 | 8,796 | 9,171 | Balance, end of period | 9,084 | 8,634 | |||||||||||||||||||
Accumulated Other Comprehensive Income | ||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||||
Balance, beginning of period | 154 | 120 | 51 | (878 | ) | Balance, beginning of period | 803 | 51 | ||||||||||||||||||
Other comprehensive income | 257 | 19 | 360 | 1,017 | ||||||||||||||||||||||
Other comprehensive loss | Other comprehensive loss | (616) | (1,121) | |||||||||||||||||||||||
Balance, end of period | 411 | 139 | 411 | 139 | Balance, end of period | 187 | (1,070) | |||||||||||||||||||
Treasury Stock | Treasury Stock | |||||||||||||||||||||||||
Balance, beginning of period | (71 | ) | (65 | ) | (70 | ) | (57 | ) | Balance, beginning of period | (71) | (70) | |||||||||||||||
Stock-based compensation | 0 | 0 | 17 | 8 | Stock-based compensation | 15 | 16 | |||||||||||||||||||
Purchase of treasury stock | — | (2 | ) | (18 | ) | (18 | ) | Purchase of treasury stock | (3) | (18) | ||||||||||||||||
Balance, end of period | (71 | ) | (67 | ) | (71 | ) | (67 | ) | Balance, end of period | (59) | (72) | |||||||||||||||
Total stockholders' equity | $ | 12,021 | $ | 12,123 | $ | 12,021 | $ | 12,123 | Total stockholders' equity | $ | 12,089 | $ | 10,362 |
Periods ended September 30 | Three Months | Nine Months | |||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Fixed maturity securities | $ | 432 | $ | 452 | $ | 1,300 | $ | 1,362 | |||||||
Equity securities | 18 | 16 | 24 | 62 | |||||||||||
Limited partnership investments | 64 | 12 | 38 | 125 | |||||||||||
Mortgage loans | 14 | 13 | 42 | 37 | |||||||||||
Short term investments | 1 | 8 | 9 | 27 | |||||||||||
Trading portfolio | 4 | 2 | 13 | 6 | |||||||||||
Other | 0 | 0 | 2 | 2 | |||||||||||
Gross investment income | 533 | 503 | 1,428 | 1,621 | |||||||||||
Investment expense | (16 | ) | (16 | ) | (48 | ) | (48 | ) | |||||||
Net investment income | $ | 517 | $ | 487 | $ | 1,380 | $ | 1,573 |
Three months ended March 31 | |||||||||||
(In millions) | 2021 | 2020 | |||||||||
Fixed maturity securities | $ | 428 | $ | 438 | |||||||
Equity securities | 29 | (44) | |||||||||
Limited partnership investments | 43 | (70) | |||||||||
Mortgage loans | 14 | 14 | |||||||||
Short term investments | 0 | 7 | |||||||||
Trading portfolio | 5 | 1 | |||||||||
Other | 2 | 0 | |||||||||
Gross investment income | 521 | 346 | |||||||||
Investment expense | (17) | (17) | |||||||||
Net investment income | $ | 504 | $ | 329 |
Periods ended September 30 | Three Months | Nine Months | |||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Net investment gains (losses): | |||||||||||||||
Fixed maturity securities: | |||||||||||||||
Gross gains | $ | 44 | $ | 34 | $ | 175 | $ | 98 | |||||||
Gross losses | (18 | ) | (31 | ) | (207 | ) | (104 | ) | |||||||
Net investment gains (losses) on fixed maturity securities | 26 | 3 | (32 | ) | (6 | ) | |||||||||
Equity securities | 25 | 7 | (45 | ) | 60 | ||||||||||
Derivatives | (2 | ) | (2 | ) | (7 | ) | (13 | ) | |||||||
Mortgage loans | (3 | ) | 0 | (16 | ) | 0 | |||||||||
Short term investments and other | (19 | ) | (1 | ) | (20 | ) | (21 | ) | |||||||
Net investment gains (losses) | $ | 27 | $ | 7 | $ | (120 | ) | $ | 20 |
Three months ended March 31 | |||||||||||
(In millions) | 2021 | 2020 | |||||||||
Net investment gains (losses): | |||||||||||
Fixed maturity securities: | |||||||||||
Gross gains | $ | 58 | $ | 29 | |||||||
Gross losses | (20) | (104) | |||||||||
Net investment gains (losses) on fixed maturity securities | 38 | (75) | |||||||||
Equity securities | 2 | (133) | |||||||||
Derivatives | 17 | 5 | |||||||||
Mortgage loans | 0 | (13) | |||||||||
Net investment gains (losses) | $ | 57 | $ | (216) |
(In millions) | Corporate and other bonds | Asset-backed | Total | ||||||||||||||
Allowance for credit losses: | |||||||||||||||||
Balance as of January 1, 2021 | $ | 23 | $ | 17 | $ | 40 | |||||||||||
Additions to the allowance for credit losses: | |||||||||||||||||
Securities for which credit losses were not previously recorded | 14 | 0 | 14 | ||||||||||||||
Available-for-sale securities accounted for as PCD assets | 2 | 0 | 2 | ||||||||||||||
Reductions to the allowance for credit losses: | |||||||||||||||||
Securities sold during the period (realized) | 6 | 0 | 6 | ||||||||||||||
Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis | 0 | 0 | 0 | ||||||||||||||
Write-offs charged against the allowance | 0 | 0 | 0 | ||||||||||||||
Recoveries of amounts previously written off | 0 | 0 | 0 | ||||||||||||||
Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period | (6) | (1) | (7) | ||||||||||||||
Balance as of March 31, 2021 | $ | 27 | $ | 16 | $ | 43 |
Three months ended September 30 | ||||||||||||||||||||||||||||
(In millions) | Corporate and other bonds | Asset-backed | Total | (In millions) | Corporate and other bonds | Asset-backed | Total | |||||||||||||||||||||
Allowance for credit losses: | Allowance for credit losses: | |||||||||||||||||||||||||||
Beginning balance | $ | 39 | $ | 12 | $ | 51 | ||||||||||||||||||||||
Balance as of January 1, 2020 | Balance as of January 1, 2020 | $ | 0 | $ | 0 | $ | 0 | |||||||||||||||||||||
Additions to the allowance for credit losses: | Additions to the allowance for credit losses: | |||||||||||||||||||||||||||
For securities for which credit losses were not previously recorded | 4 | 0 | 4 | |||||||||||||||||||||||||
For available-for-sale securities accounted for as PCD assets | 1 | 0 | 1 | |||||||||||||||||||||||||
Impact of adopting ASC 326 | Impact of adopting ASC 326 | 6 | 0 | 6 | ||||||||||||||||||||||||
Securities for which credit losses were not previously recorded | Securities for which credit losses were not previously recorded | 48 | 0 | 48 | ||||||||||||||||||||||||
Available-for-sale securities accounted for as PCD assets | Available-for-sale securities accounted for as PCD assets | 1 | 0 | 1 | ||||||||||||||||||||||||
Reductions to the allowance for credit losses: | Reductions to the allowance for credit losses: | |||||||||||||||||||||||||||
Securities sold during the period (realized) | 9 | 0 | 9 | Securities sold during the period (realized) | 5 | 0 | 5 | |||||||||||||||||||||
Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis | 0 | 0 | 0 | Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis | 1 | 0 | 1 | |||||||||||||||||||||
Write-offs charged against the allowance | 0 | 0 | 0 | Write-offs charged against the allowance | 0 | 0 | 0 | |||||||||||||||||||||
Recoveries of amounts previously written off | 0 | 0 | 0 | Recoveries of amounts previously written off | 0 | 0 | 0 | |||||||||||||||||||||
Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period | (1 | ) | 1 | 0 | Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period | 0 | 0 | 0 | ||||||||||||||||||||
Ending balance as of September 30, 2020 | $ | 34 | $ | 13 | $ | 47 | ||||||||||||||||||||||
Balance as of March 31, 2020 | Balance as of March 31, 2020 | $ | 49 | $ | 0 | $ | 49 |
Nine months ended September 30 | |||||||||||
(In millions) | Corporate and other bonds | Asset-backed | Total | ||||||||
Allowance for credit losses: | |||||||||||
Beginning balance | $ | 0 | $ | 0 | $ | 0 | |||||
Additions to the allowance for credit losses: | |||||||||||
Impact of adopting ASC 326 | 6 | 0 | 6 | ||||||||
For securities for which credit losses were not previously recorded | 62 | 12 | 74 | ||||||||
For available-for-sale securities accounted for as PCD assets | 3 | 0 | 3 | ||||||||
Reductions to the allowance for credit losses: | |||||||||||
Securities sold during the period (realized) | 15 | 0 | 15 | ||||||||
Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis | 1 | 0 | 1 | ||||||||
Write-offs charged against the allowance | 0 | 0 | 0 | ||||||||
Recoveries of amounts previously written off | 0 | 0 | 0 | ||||||||
Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period | (21 | ) | 1 | (20 | ) | ||||||
Ending balance as of September 30, 2020 | $ | 34 | $ | 13 | $ | 47 |
Three months ended March 31 | |||||||||||
(In millions) | 2021 | 2020 | |||||||||
Fixed maturity securities available-for-sale: | |||||||||||
Corporate and other bonds | $ | 7 | $ | 91 | |||||||
Asset-backed | (1) | 1 | |||||||||
Impairment losses recognized in earnings | $ | 6 | $ | 92 |
Periods ended September 30 | Three Months | Nine Months | |||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Fixed maturity securities available-for-sale: | |||||||||||||||
Corporate and other bonds | $ | 4 | $ | 12 | $ | 94 | $ | 24 | |||||||
Asset-backed | 1 | 2 | 14 | 10 | |||||||||||
Impairment losses recognized in earnings | $ | 5 | $ | 14 | $ | 108 | $ | 34 |
March 31, 2021 | Cost or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Allowance for Credit Losses | Estimated Fair Value | ||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Fixed maturity securities available-for-sale: | |||||||||||||||||||||||||||||
Corporate and other bonds | $ | 21,110 | $ | 2,644 | $ | 71 | $ | 27 | $ | 23,656 | |||||||||||||||||||
States, municipalities and political subdivisions | 10,041 | 1,590 | 31 | 0 | 11,600 | ||||||||||||||||||||||||
Asset-backed: | |||||||||||||||||||||||||||||
Residential mortgage-backed | 3,215 | 108 | 40 | 0 | 3,283 | ||||||||||||||||||||||||
Commercial mortgage-backed | 1,952 | 76 | 24 | 16 | 1,988 | ||||||||||||||||||||||||
Other asset-backed | 2,281 | 71 | 7 | 0 | 2,345 | ||||||||||||||||||||||||
Total asset-backed | 7,448 | 255 | 71 | 16 | 7,616 | ||||||||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 138 | 1 | 7 | 0 | 132 | ||||||||||||||||||||||||
Foreign government | 508 | 23 | 2 | 0 | 529 | ||||||||||||||||||||||||
Redeemable preferred stock | 12 | 0 | 0 | 0 | 12 | ||||||||||||||||||||||||
Total fixed maturity securities available-for-sale | 39,257 | 4,513 | 182 | 43 | 43,545 | ||||||||||||||||||||||||
Total fixed maturity securities trading | 34 | — | — | — | 34 | ||||||||||||||||||||||||
Total fixed maturity securities | $ | 39,291 | $ | 4,513 | $ | 182 | $ | 43 | $ | 43,579 |
September 30, 2020 | Cost or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Allowance for Credit Losses(1) | Estimated Fair Value | ||||||||||||||
(In millions) | |||||||||||||||||||
Fixed maturity securities available-for-sale: | |||||||||||||||||||
Corporate and other bonds | $ | 20,734 | $ | 3,047 | $ | 89 | $ | 34 | $ | 23,658 | |||||||||
States, municipalities and political subdivisions | 9,459 | 1,766 | 1 | 0 | 11,224 | ||||||||||||||
Asset-backed: | |||||||||||||||||||
Residential mortgage-backed | 3,796 | 153 | 1 | 0 | 3,948 | ||||||||||||||
Commercial mortgage-backed | 2,048 | 85 | 70 | 13 | 2,050 | ||||||||||||||
Other asset-backed | 2,097 | 76 | 19 | 0 | 2,154 | ||||||||||||||
Total asset-backed | 7,941 | 314 | 90 | 13 | 8,152 | ||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 347 | 4 | 1 | 0 | 350 | ||||||||||||||
Foreign government | 481 | 29 | 0 | 0 | 510 | ||||||||||||||
Redeemable preferred stock | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Total fixed maturity securities available-for-sale | 38,962 | 5,160 | 181 | 47 | 43,894 | ||||||||||||||
Total fixed maturity securities trading | 7 | — | — | — | 7 | ||||||||||||||
Total fixed maturity securities | $ | 38,969 | $ | 5,160 | $ | 181 | $ | 47 | $ | 43,901 |
December 31, 2019 | Cost or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | Unrealized OTTI Losses (Gains) | ||||||||||||||
(In millions) | |||||||||||||||||||
Fixed maturity securities available-for-sale: | |||||||||||||||||||
Corporate and other bonds | $ | 19,789 | $ | 2,292 | $ | 32 | $ | 22,049 | $ | 0 | |||||||||
States, municipalities and political subdivisions | 9,093 | 1,559 | 0 | 10,652 | 0 | ||||||||||||||
Asset-backed: | |||||||||||||||||||
Residential mortgage-backed | 4,387 | 133 | 1 | 4,519 | (17 | ) | |||||||||||||
Commercial mortgage-backed | 2,265 | 86 | 5 | 2,346 | 1 | ||||||||||||||
Other asset-backed | 1,925 | 41 | 4 | 1,962 | (3 | ) | |||||||||||||
Total asset-backed | 8,577 | 260 | 10 | 8,827 | (19 | ) | |||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 146 | 1 | 2 | 145 | 0 | ||||||||||||||
Foreign government | 491 | 14 | 1 | 504 | 0 | ||||||||||||||
Redeemable preferred stock | 10 | 0 | 0 | 10 | 0 | ||||||||||||||
Total fixed maturity securities available-for-sale | 38,106 | 4,126 | 45 | 42,187 | $ | (19 | ) | ||||||||||||
Total fixed maturity securities trading | 20 | — | — | 20 | |||||||||||||||
Total fixed maturity securities | $ | 38,126 | $ | 4,126 | $ | 45 | $ | 42,207 |
December 31, 2020 | Cost or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Allowance for Credit Losses | Estimated Fair Value | ||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Fixed maturity securities available-for-sale: | |||||||||||||||||||||||||||||
Corporate and other bonds | $ | 20,792 | $ | 3,578 | $ | 22 | $ | 23 | $ | 24,325 | |||||||||||||||||||
States, municipalities and political subdivisions | 9,729 | 1,863 | 0 | 0 | 11,592 | ||||||||||||||||||||||||
Asset-backed: | |||||||||||||||||||||||||||||
Residential mortgage-backed | 3,442 | 146 | 1 | 0 | 3,587 | ||||||||||||||||||||||||
Commercial mortgage-backed | 1,933 | 93 | 42 | 17 | 1,967 | ||||||||||||||||||||||||
Other asset-backed | 2,179 | 81 | 9 | 0 | 2,251 | ||||||||||||||||||||||||
Total asset-backed | 7,554 | 320 | 52 | 17 | 7,805 | ||||||||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 339 | 2 | 3 | 0 | 338 | ||||||||||||||||||||||||
Foreign government | 512 | 32 | 0 | 0 | 544 | ||||||||||||||||||||||||
Redeemable preferred stock | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Total fixed maturity securities available-for-sale | 38,926 | 5,795 | 77 | 40 | 44,604 | ||||||||||||||||||||||||
Total fixed maturity securities trading | 27 | — | — | — | 27 | ||||||||||||||||||||||||
Total fixed maturity securities | $ | 38,953 | $ | 5,795 | $ | 77 | $ | 40 | $ | 44,631 |
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||||||||||||
March 31, 2021 | Estimated Fair Value | Gross Unrealized Losses | Estimated Fair Value | Gross Unrealized Losses | Estimated Fair Value | Gross Unrealized Losses | |||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||
Fixed maturity securities available-for-sale: | |||||||||||||||||||||||||||||||||||
Corporate and other bonds | $ | 1,868 | $ | 66 | $ | 82 | $ | 5 | $ | 1,950 | $ | 71 | |||||||||||||||||||||||
States, municipalities and political subdivisions | 866 | 31 | 0 | 0 | 866 | 31 | |||||||||||||||||||||||||||||
Asset-backed: | |||||||||||||||||||||||||||||||||||
Residential mortgage-backed | 1,584 | 40 | 12 | 0 | 1,596 | 40 | |||||||||||||||||||||||||||||
Commercial mortgage-backed | 320 | 9 | 285 | 15 | 605 | 24 | |||||||||||||||||||||||||||||
Other asset-backed | 337 | 3 | 97 | 4 | 434 | 7 | |||||||||||||||||||||||||||||
Total asset-backed | 2,241 | 52 | 394 | 19 | 2,635 | 71 | |||||||||||||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 65 | 7 | 0 | 0 | 65 | 7 | |||||||||||||||||||||||||||||
Foreign government | 45 | 2 | 0 | 0 | 45 | 2 | |||||||||||||||||||||||||||||
Total | $ | 5,085 | $ | 158 | $ | 476 | $ | 24 | $ | 5,561 | $ | 182 | |||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||
September 30, 2020 | Estimated Fair Value | Gross Unrealized Losses | Estimated Fair Value | Gross Unrealized Losses | Estimated Fair Value | Gross Unrealized Losses | |||||||||||||||||
(In millions) | |||||||||||||||||||||||
Fixed maturity securities available-for-sale: | |||||||||||||||||||||||
Corporate and other bonds | $ | 1,579 | $ | 86 | $ | 56 | $ | 3 | $ | 1,635 | $ | 89 | |||||||||||
States, municipalities and political subdivisions | 154 | 1 | 0 | 0 | 154 | 1 | |||||||||||||||||
Asset-backed: | |||||||||||||||||||||||
Residential mortgage-backed | 98 | 1 | 13 | 0 | 111 | 1 | |||||||||||||||||
Commercial mortgage-backed | 693 | 69 | 19 | 1 | 712 | 70 | |||||||||||||||||
Other asset-backed | 432 | 18 | 13 | 1 | 445 | 19 | |||||||||||||||||
Total asset-backed | 1,223 | 88 | 45 | 2 | 1,268 | 90 | |||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 25 | 1 | 0 | 0 | 25 | 1 | |||||||||||||||||
Foreign government | 20 | 0 | 0 | 0 | 20 | 0 | |||||||||||||||||
Total | $ | 3,001 | $ | 176 | $ | 101 | $ | 5 | $ | 3,102 | $ | 181 |
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||
December 31, 2019 | Estimated Fair Value | Gross Unrealized Losses | Estimated Fair Value | Gross Unrealized Losses | Estimated Fair Value | Gross Unrealized Losses | |||||||||||||||||
(In millions) | |||||||||||||||||||||||
Fixed maturity securities available-for-sale: | |||||||||||||||||||||||
Corporate and other bonds | $ | 914 | $ | 21 | $ | 186 | $ | 11 | $ | 1,100 | $ | 32 | |||||||||||
States, municipalities and political subdivisions | 34 | 0 | 0 | 0 | 34 | — | |||||||||||||||||
Asset-backed: | |||||||||||||||||||||||
Residential mortgage-backed | 249 | 1 | 30 | 0 | 279 | 1 | |||||||||||||||||
Commercial mortgage-backed | 381 | 3 | 20 | 2 | 401 | 5 | |||||||||||||||||
Other asset-backed | 449 | 3 | 33 | 1 | 482 | 4 | |||||||||||||||||
Total asset-backed | 1,079 | 7 | 83 | 3 | 1,162 | 10 | |||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 62 | 2 | 2 | 0 | 64 | 2 | |||||||||||||||||
Foreign government | 59 | 1 | 1 | 0 | 60 | 1 | |||||||||||||||||
Total | $ | 2,148 | $ | 31 | $ | 272 | $ | 14 | $ | 2,420 | $ | 45 |
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||||||||||||
December 31, 2020 | Estimated Fair Value | Gross Unrealized Losses | Estimated Fair Value | Gross Unrealized Losses | Estimated Fair Value | Gross Unrealized Losses | |||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||
Fixed maturity securities available-for-sale: | |||||||||||||||||||||||||||||||||||
Corporate and other bonds | $ | 609 | $ | 21 | $ | 12 | $ | 1 | $ | 621 | $ | 22 | |||||||||||||||||||||||
States, municipalities and political subdivisions | 33 | 0 | 0 | 0 | 33 | — | |||||||||||||||||||||||||||||
Asset-backed: | |||||||||||||||||||||||||||||||||||
Residential mortgage-backed | 71 | 1 | 11 | 0 | 82 | 1 | |||||||||||||||||||||||||||||
Commercial mortgage-backed | 533 | 40 | 28 | 2 | 561 | 42 | |||||||||||||||||||||||||||||
Other asset-backed | 344 | 9 | 13 | 0 | 357 | 9 | |||||||||||||||||||||||||||||
Total asset-backed | 948 | 50 | 52 | 2 | 1,000 | 52 | |||||||||||||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 63 | 3 | 0 | 0 | 63 | 3 | |||||||||||||||||||||||||||||
Foreign government | 13 | 0 | 0 | 0 | 13 | 0 | |||||||||||||||||||||||||||||
Total | $ | 1,666 | $ | 74 | $ | 64 | $ | 3 | $ | 1,730 | $ | 77 |
September 30, 2020 | December 31, 2019 | ||||||||||||||
(In millions) | Cost or Amortized Cost | Estimated Fair Value | Cost or Amortized Cost | Estimated Fair Value | |||||||||||
Due in one year or less | $ | 1,372 | $ | 1,392 | $ | 1,334 | $ | 1,356 | |||||||
Due after one year through five years | 11,955 | 12,625 | 9,746 | 10,186 | |||||||||||
Due after five years through ten years | 13,026 | 14,359 | 14,892 | 15,931 | |||||||||||
Due after ten years | 12,609 | 15,518 | 12,134 | 14,714 | |||||||||||
Total | $ | 38,962 | $ | 43,894 | $ | 38,106 | $ | 42,187 |
March 31, 2021 | December 31, 2020 | ||||||||||||||||||||||
(In millions) | Cost or Amortized Cost | Estimated Fair Value | Cost or Amortized Cost | Estimated Fair Value | |||||||||||||||||||
Due in one year or less | $ | 1,468 | $ | 1,473 | $ | 1,456 | $ | 1,458 | |||||||||||||||
Due after one year through five years | 10,837 | 11,583 | 12,304 | 13,098 | |||||||||||||||||||
Due after five years through ten years | 13,640 | 14,685 | 12,319 | 13,878 | |||||||||||||||||||
Due after ten years | 13,312 | 15,804 | 12,847 | 16,170 | |||||||||||||||||||
Total | $ | 39,257 | $ | 43,545 | $ | 38,926 | $ | 44,604 |
March 31, 2021 | Mortgage Loans Amortized Cost Basis by Origination Year (1) | ||||||||||||||||||||||||||||||||||||||||
(In millions) | 2021 | 2020 | 2019 | 2018 | 2017 | Prior | Total | ||||||||||||||||||||||||||||||||||
DSCR ≥1.6x | |||||||||||||||||||||||||||||||||||||||||
LTV less than 55% | $ | 0 | $ | 75 | $ | 32 | $ | 36 | $ | 114 | $ | 187 | $ | 444 | |||||||||||||||||||||||||||
LTV 55% to 65% | 0 | 14 | 20 | 14 | 15 | 11 | 74 | ||||||||||||||||||||||||||||||||||
LTV greater than 65% | 5 | 0 | 5 | 0 | 0 | 24 | 34 | ||||||||||||||||||||||||||||||||||
DSCR 1.2x - 1.6x | |||||||||||||||||||||||||||||||||||||||||
LTV less than 55% | 0 | 0 | 16 | 0 | 5 | 77 | 98 | ||||||||||||||||||||||||||||||||||
LTV 55% to 65% | 0 | 20 | 40 | 53 | 27 | 0 | 140 | ||||||||||||||||||||||||||||||||||
LTV greater than 65% | 10 | 52 | 44 | 0 | 9 | 12 | 127 | ||||||||||||||||||||||||||||||||||
DSCR ≤1.2 | |||||||||||||||||||||||||||||||||||||||||
LTV less than 55% | 0 | 0 | 50 | 0 | 8 | 10 | 68 | ||||||||||||||||||||||||||||||||||
LTV 55% to 65% | 0 | 0 | 48 | 0 | 0 | 0 | 48 | ||||||||||||||||||||||||||||||||||
LTV greater than 65% | 0 | 0 | 29 | 0 | 0 | 7 | 36 | ||||||||||||||||||||||||||||||||||
Total | $ | 15 | $ | 161 | $ | 284 | $ | 103 | $ | 178 | $ | 328 | $ | 1,069 |
September 30, 2020 | Mortgage Loans Amortized Cost Basis by Origination Year (1) | ||||||||||||||||||||||||||
(In millions) | 2020 | 2019 | 2018 | 2017 | 2016 | Prior | Total | ||||||||||||||||||||
DSCR ≥1.6x | |||||||||||||||||||||||||||
LTV less than 55% | $ | 75 | $ | 33 | $ | 19 | $ | 85 | $ | 33 | $ | 161 | $ | 406 | |||||||||||||
LTV 55% to 65% | 0 | 33 | 29 | 55 | 12 | 0 | 129 | ||||||||||||||||||||
LTV greater than 65% | 0 | 5 | 0 | 0 | 0 | 12 | 17 | ||||||||||||||||||||
DSCR 1.2x - 1.6x | |||||||||||||||||||||||||||
LTV less than 55% | 0 | 31 | 10 | 13 | 16 | 79 | 149 | ||||||||||||||||||||
LTV 55% to 65% | 20 | 54 | 32 | 24 | 0 | 0 | 130 | ||||||||||||||||||||
LTV greater than 65% | 48 | 103 | 0 | 0 | 0 | 0 | 151 | ||||||||||||||||||||
DSCR ≤1.2 | |||||||||||||||||||||||||||
LTV less than 55% | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
LTV 55% to 65% | 0 | 14 | 14 | 0 | 0 | 0 | 28 | ||||||||||||||||||||
LTV greater than 65% | 0 | 23 | 0 | 45 | 24 | 7 | 99 | ||||||||||||||||||||
Total | $ | 143 | $ | 296 | $ | 104 | $ | 222 | $ | 85 | $ | 259 | $ | 1,109 |
March 31, 2021 | Total Assets/Liabilities at Fair Value | ||||||||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Assets | |||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||
Corporate bonds and other | $ | 152 | $ | 23,444 | $ | 767 | $ | 24,363 | |||||||||||||||
States, municipalities and political subdivisions | 0 | 11,556 | 44 | 11,600 | |||||||||||||||||||
Asset-backed | 0 | 7,301 | 315 | 7,616 | |||||||||||||||||||
Total fixed maturity securities | 152 | 42,301 | 1,126 | 43,579 | |||||||||||||||||||
Equity securities: | |||||||||||||||||||||||
Common stock | 177 | 0 | 21 | 198 | |||||||||||||||||||
Non-redeemable preferred stock | 67 | 711 | 8 | 786 | |||||||||||||||||||
Total equity securities | 244 | 711 | 29 | 984 | |||||||||||||||||||
Short term and other | 1,178 | 25 | 0 | 1,203 | |||||||||||||||||||
Total assets | $ | 1,574 | $ | 43,037 | $ | 1,155 | $ | 45,766 | |||||||||||||||
Liabilities | |||||||||||||||||||||||
Other liabilities | $ | 0 | $ | 2 | $ | 0 | $ | 2 | |||||||||||||||
Total liabilities | $ | 0 | $ | 2 | $ | 0 | $ | 2 |
September 30, 2020 | Total Assets/Liabilities at Fair Value | ||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | ||||||||||||
Assets | |||||||||||||||
Fixed maturity securities: | |||||||||||||||
Corporate bonds and other | $ | 372 | $ | 23,459 | $ | 694 | $ | 24,525 | |||||||
States, municipalities and political subdivisions | 0 | 11,179 | 45 | 11,224 | |||||||||||
Asset-backed | 0 | 7,917 | 235 | 8,152 | |||||||||||
Total fixed maturity securities | 372 | 42,555 | 974 | 43,901 | |||||||||||
Equity securities: | |||||||||||||||
Common stock | 157 | 0 | 16 | 173 | |||||||||||
Non-redeemable preferred stock | 65 | 674 | 7 | 746 | |||||||||||
Total equity securities | 222 | 674 | 23 | 919 | |||||||||||
Short term and other | 1,301 | 25 | 0 | 1,326 | |||||||||||
Total assets | $ | 1,895 | $ | 43,254 | $ | 997 | $ | 46,146 | |||||||
Liabilities | |||||||||||||||
Other liabilities | $ | 0 | $ | 16 | $ | 0 | $ | 16 | |||||||
Total liabilities | $ | 0 | $ | 16 | $ | 0 | $ | 16 |
December 31, 2019 | Total Assets/Liabilities at Fair Value | ||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | ||||||||||||
Assets | |||||||||||||||
Fixed maturity securities: | |||||||||||||||
Corporate bonds and other | $ | 175 | $ | 22,085 | $ | 468 | $ | 22,728 | |||||||
States, municipalities and political subdivisions | 0 | 10,652 | 0 | 10,652 | |||||||||||
Asset-backed | 0 | 8,662 | 165 | 8,827 | |||||||||||
Total fixed maturity securities | 175 | 41,399 | 633 | 42,207 | |||||||||||
Equity securities: | |||||||||||||||
Common stock | 135 | 0 | 7 | 142 | |||||||||||
Non-redeemable preferred stock | 54 | 658 | 11 | 723 | |||||||||||
Total equity securities | 189 | 658 | 18 | 865 | |||||||||||
Short term and other | 397 | 1,344 | 0 | 1,741 | |||||||||||
Total assets | $ | 761 | $ | 43,401 | $ | 651 | $ | 44,813 | |||||||
Liabilities | |||||||||||||||
Other liabilities | $ | 0 | $ | 7 | $ | 0 | $ | 7 | |||||||
Total liabilities | $ | 0 | $ | 7 | $ | 0 | $ | 7 |
December 31, 2020 | Total Assets/Liabilities at Fair Value | ||||||||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Assets | |||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||
Corporate bonds and other | $ | 355 | $ | 24,109 | $ | 770 | $ | 25,234 | |||||||||||||||
States, municipalities and political subdivisions | 0 | 11,546 | 46 | 11,592 | |||||||||||||||||||
Asset-backed | 0 | 7,497 | 308 | 7,805 | |||||||||||||||||||
Total fixed maturity securities | 355 | 43,152 | 1,124 | 44,631 | |||||||||||||||||||
Equity securities: | |||||||||||||||||||||||
Common stock | 175 | 0 | 20 | 195 | |||||||||||||||||||
Non-redeemable preferred stock | 68 | 722 | 7 | 797 | |||||||||||||||||||
Total equity securities | 243 | 722 | 27 | 992 | |||||||||||||||||||
Short term and other | 1,761 | 28 | 0 | 1,789 | |||||||||||||||||||
Total assets | $ | 2,359 | $ | 43,902 | $ | 1,151 | $ | 47,412 | |||||||||||||||
Liabilities | |||||||||||||||||||||||
Other liabilities | $ | 0 | $ | 19 | $ | 0 | $ | 19 | |||||||||||||||
Total liabilities | $ | 0 | $ | 19 | $ | 0 | $ | 19 |
Level 3 (In millions) | Corporate bonds and other | States, municipalities and political subdivisions | Asset-backed | Equity securities | Total | ||||||||||||||||||||||||
Balance as of January 1, 2021 | $ | 770 | $ | 46 | $ | 308 | $ | 27 | $ | 1,151 | |||||||||||||||||||
Total realized and unrealized investment gains (losses): | |||||||||||||||||||||||||||||
Reported in Net investment gains (losses) | (13) | 0 | 0 | 1 | (12) | ||||||||||||||||||||||||
Reported in Net investment income | 0 | 0 | 2 | 1 | 3 | ||||||||||||||||||||||||
Reported in Other comprehensive income (loss) | (40) | (2) | (9) | 0 | (51) | ||||||||||||||||||||||||
Total realized and unrealized investment gains (losses) | (53) | (2) | (7) | 2 | (60) | ||||||||||||||||||||||||
Purchases | 42 | 0 | 30 | 0 | 72 | ||||||||||||||||||||||||
Sales | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Settlements | (2) | 0 | (17) | 0 | (19) | ||||||||||||||||||||||||
Transfers into Level 3 | 10 | 0 | 9 | 0 | 19 | ||||||||||||||||||||||||
Transfers out of Level 3 | 0 | 0 | (8) | 0 | (8) | ||||||||||||||||||||||||
Balance as of March 31, 2021 | $ | 767 | $ | 44 | $ | 315 | $ | 29 | $ | 1,155 | |||||||||||||||||||
Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2021 recognized in Net income (loss) in the period | $ | 0 | $ | 0 | $ | 0 | $ | 2 | $ | 2 | |||||||||||||||||||
Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2021 recognized in Other comprehensive income (loss) in the period | (40) | (2) | (9) | 0 | (51) |
Level 3 (In millions) | Corporate bonds and other | States, municipalities and political subdivisions | Asset-backed | Equity securities | Total | ||||||||||||||
Balance as of July 1, 2020 | $ | 555 | $ | 0 | $ | 222 | $ | 11 | $ | 788 | |||||||||
Total realized and unrealized investment gains (losses): | |||||||||||||||||||
Reported in Net investment gains (losses) | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Reported in Net investment income | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Reported in Other comprehensive income (loss) | 5 | 0 | 9 | 0 | 14 | ||||||||||||||
Total realized and unrealized investment gains (losses) | 5 | 0 | 9 | 0 | 14 | ||||||||||||||
Purchases | 129 | 45 | 20 | 12 | 206 | ||||||||||||||
Sales | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Settlements | (3 | ) | 0 | (14 | ) | 0 | (17 | ) | |||||||||||
Transfers into Level 3 | 8 | 0 | 0 | 0 | 8 | ||||||||||||||
Transfers out of Level 3 | 0 | 0 | (2 | ) | 0 | (2 | ) | ||||||||||||
Balance as of September 30, 2020 | $ | 694 | $ | 45 | $ | 235 | $ | 23 | $ | 997 | |||||||||
Unrealized gains (losses) on Level 3 assets and liabilities held as of September 30, 2020 recognized in Net income (loss) in the period | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||
Unrealized gains (losses) on Level 3 assets and liabilities held as of September 30, 2020 recognized in Other comprehensive income (loss) in the period | 5 | 0 | 8 | 0 | 13 |
Level 3 (In millions) | Corporate bonds and other | Asset-backed | Equity securities | Total | |||||||||||
Balance as of July 1, 2019 | $ | 338 | $ | 193 | $ | 22 | $ | 553 | |||||||
Total realized and unrealized investment gains (losses): | |||||||||||||||
Reported in Net investment gains (losses) | 0 | 0 | 0 | 0 | |||||||||||
Reported in Net investment income | 0 | 0 | 0 | 0 | |||||||||||
Reported in Other comprehensive income (loss) | 14 | 1 | 0 | 15 | |||||||||||
Total realized and unrealized investment gains (losses) | 14 | 1 | 0 | 15 | |||||||||||
Purchases | 79 | 22 | 0 | 101 | |||||||||||
Sales | 0 | 0 | 0 | 0 | |||||||||||
Settlements | (3 | ) | (4 | ) | 0 | (7 | ) | ||||||||
Transfers into Level 3 | 0 | 0 | 0 | 0 | |||||||||||
Transfers out of Level 3 | 0 | (16 | ) | 0 | (16 | ) | |||||||||
Balance as of September 30, 2019 | $ | 428 | $ | 196 | $ | 22 | $ | 646 | |||||||
Unrealized gains (losses) on Level 3 assets and liabilities held as of September 30, 2019 recognized in Net income (loss) in the period | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||
Unrealized gains (losses) on Level 3 assets and liabilities held as of September 30, 2019 recognized in Other comprehensive income (loss) in the period | 14 | 2 | 0 | 16 |
Level 3 (In millions) | Corporate bonds and other | States, municipalities and political subdivisions | Asset-backed | Equity securities | Total | ||||||||||||||
Balance as of January 1, 2020 | $ | 468 | $ | 0 | $ | 165 | $ | 18 | $ | 651 | |||||||||
Total realized and unrealized investment gains (losses): | |||||||||||||||||||
Reported in Net investment gains (losses) | 0 | 0 | 0 | (4 | ) | (4 | ) | ||||||||||||
Reported in Net investment income | 0 | 0 | 0 | (3 | ) | (3 | ) | ||||||||||||
Reported in Other comprehensive income (loss) | 27 | 0 | 18 | 0 | 45 | ||||||||||||||
Total realized and unrealized investment gains (losses) | 27 | 0 | 18 | (7 | ) | 38 | |||||||||||||
Purchases | 200 | 45 | 100 | 12 | 357 | ||||||||||||||
Sales | 0 | 0 | (9 | ) | 0 | (9 | ) | ||||||||||||
Settlements | (9 | ) | 0 | (22 | ) | 0 | (31 | ) | |||||||||||
Transfers into Level 3 | 8 | 0 | 0 | 0 | 8 | ||||||||||||||
Transfers out of Level 3 | 0 | 0 | (17 | ) | 0 | (17 | ) | ||||||||||||
Balance as of September 30, 2020 | $ | 694 | $ | 45 | $ | 235 | $ | 23 | $ | 997 | |||||||||
Unrealized gains (losses) on Level 3 assets and liabilities held as of September 30, 2020 recognized in Net income (loss) in the period | $ | 0 | $ | 0 | $ | 0 | $ | (7 | ) | $ | (7 | ) | |||||||
Unrealized gains (losses) on Level 3 assets and liabilities held as of September 30, 2020 recognized in Other comprehensive income (loss) in the period | 29 | 0 | 19 | 0 | 48 |
Level 3 (In millions) | Corporate bonds and other | Asset-backed | Equity securities | Total | |||||||||||
Balance as of January 1, 2019 | $ | 222 | $ | 197 | $ | 18 | $ | 437 | |||||||
Total realized and unrealized investment gains (losses): | |||||||||||||||
Reported in Net investment gains (losses) | 0 | 0 | 2 | 2 | |||||||||||
Reported in Net investment income | 0 | 0 | 0 | 0 | |||||||||||
Reported in Other comprehensive income (loss) | 34 | 8 | 0 | 42 | |||||||||||
Total realized and unrealized investment gains (losses) | 34 | 8 | 2 | 44 | |||||||||||
Purchases | 211 | 42 | 2 | 255 | |||||||||||
Sales | 0 | 0 | 0 | 0 | |||||||||||
Settlements | (7 | ) | (12 | ) | 0 | (19 | ) | ||||||||
Transfers into Level 3 | 0 | 45 | 0 | 45 | |||||||||||
Transfers out of Level 3 | (32 | ) | (84 | ) | 0 | (116 | ) | ||||||||
Balance as of September 30, 2019 | $ | 428 | $ | 196 | $ | 22 | $ | 646 | |||||||
Unrealized gains (losses) on Level 3 assets and liabilities held as of September 30, 2019 recognized in Net income (loss) in the period | $ | 0 | $ | 0 | $ | 2 | $ | 2 | |||||||
Unrealized gains (losses) on Level 3 assets and liabilities held as of September 30, 2019 recognized in Other comprehensive income (loss) in the period | 29 | 9 | 0 | 38 |
Level 3 (In millions) | Corporate bonds and other | States, municipalities and political subdivisions | Asset-backed | Equity securities | Total | ||||||||||||||||||||||||
Balance as of January 1, 2020 | $ | 468 | $ | 0 | $ | 165 | $ | 18 | $ | 651 | |||||||||||||||||||
Total realized and unrealized investment gains (losses): | |||||||||||||||||||||||||||||
Reported in Net investment gains (losses) | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Reported in Net investment income | 0 | 0 | 0 | (3) | (3) | ||||||||||||||||||||||||
Reported in Other comprehensive income (loss) | (37) | 0 | (9) | 0 | (46) | ||||||||||||||||||||||||
Total realized and unrealized investment gains (losses) | (37) | 0 | (9) | (3) | (49) | ||||||||||||||||||||||||
Purchases | 67 | 0 | 45 | 0 | 112 | ||||||||||||||||||||||||
Sales | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Settlements | (2) | 0 | (3) | 0 | (5) | ||||||||||||||||||||||||
Transfers into Level 3 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Transfers out of Level 3 | 0 | 0 | (1) | 0 | (1) | ||||||||||||||||||||||||
Balance as of March 31, 2020 | $ | 496 | $ | 0 | $ | 197 | $ | 15 | $ | 708 | |||||||||||||||||||
Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2020 recognized in Net income (loss) in the period | $ | 0 | $ | 0 | $ | 0 | $ | (3) | $ | (3) | |||||||||||||||||||
Unrealized gains (losses) on Level 3 assets and liabilities held as of March 31, 2020 recognized in Other comprehensive income (loss) in the period | (35) | 0 | (9) | 0 | (44) |
March 31, 2021 | Estimated Fair Value (In millions) | Valuation Technique(s) | Unobservable Input(s) | Range (Weighted Average) | |||||||||||||||||||
Fixed maturity securities | $ | 936 | Discounted cash flow | Credit spread | 1% - 8% (2%) |
September 30, 2020 | Estimated Fair Value (In millions) | Valuation Technique(s) | Unobservable Input(s) | Range (Weighted Average) | |||||
Fixed maturity securities | $ | 888 | Discounted cash flow | Credit spread | 1% - 10% (3%) |
December 31, 2019 | Estimated Fair Value (In millions) | Valuation Technique(s) | Unobservable Input(s) | Range (Weighted Average) | |||||
Fixed maturity securities | $ | 525 | Discounted cash flow | Credit spread | 1% - 6% (2%) |
December 31, 2020 | Estimated Fair Value (In millions) | Valuation Technique(s) | Unobservable Input(s) | Range (Weighted Average) | |||||||||||||||||||
Fixed maturity securities | $ | 966 | Discounted cash flow | Credit spread | 1% - 8% (3%) |
March 31, 2021 | Carrying Amount | Estimated Fair Value | |||||||||||||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Mortgage loans | $ | 1,043 | $ | 0 | $ | 0 | $ | 1,107 | $ | 1,107 | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Long term debt | $ | 2,777 | $ | 0 | $ | 3,016 | $ | 0 | $ | 3,016 |
September 30, 2020 | Carrying Amount | Estimated Fair Value | |||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Assets | |||||||||||||||||||
Mortgage loans | $ | 1,088 | $ | 0 | $ | 0 | $ | 1,159 | $ | 1,159 | |||||||||
Liabilities | |||||||||||||||||||
Long term debt | $ | 2,776 | $ | 0 | $ | 3,118 | $ | 0 | $ | 3,118 |
December 31, 2019 | Carrying Amount | Estimated Fair Value | |||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Assets | |||||||||||||||||||
Mortgage loans | $ | 994 | $ | 0 | $ | 0 | $ | 1,025 | $ | 1,025 | |||||||||
Note receivable | 21 | 0 | 0 | 21 | 21 | ||||||||||||||
Liabilities | |||||||||||||||||||
Long term debt | $ | 2,679 | $ | 0 | $ | 2,906 | $ | 0 | $ | 2,906 |
December 31, 2020 | Carrying Amount | Estimated Fair Value | |||||||||||||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Mortgage loans | $ | 1,068 | $ | 0 | $ | 0 | $ | 1,151 | $ | 1,151 | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Long term debt | $ | 2,776 | $ | 0 | $ | 3,148 | $ | 0 | $ | 3,148 |
For the three months ended March 31, 2021 | |||||||||||
(In millions) | 2021 | 2020 | |||||||||
Reserves, beginning of year: | |||||||||||
Gross | $ | 22,706 | $ | 21,720 | |||||||
Ceded | 4,005 | 3,835 | |||||||||
Net reserves, beginning of year | 18,701 | 17,885 | |||||||||
Reduction of net reserves due to Excess Workers' Compensation Loss Portfolio Transfer | (632) | 0 | |||||||||
Net incurred claim and claim adjustment expenses: | |||||||||||
Provision for insured events of current year | 1,474 | 1,355 | |||||||||
Increase (decrease) in provision for insured events of prior years | (54) | (8) | |||||||||
Amortization of discount | 50 | 51 | |||||||||
Total net incurred (1) | 1,470 | 1,398 | |||||||||
Net payments attributable to: | |||||||||||
Current year events | (85) | (72) | |||||||||
Prior year events | (1,067) | (1,218) | |||||||||
Total net payments | (1,152) | (1,290) | |||||||||
Foreign currency translation adjustment and other | (32) | (88) | |||||||||
Net reserves, end of period | 18,355 | 17,905 | |||||||||
Ceded reserves, end of period | 4,701 | 3,967 | |||||||||
Gross reserves, end of period | $ | 23,056 | $ | 21,872 |
For the nine months ended September 30 | |||||||
(In millions) | 2020 | 2019 | |||||
Reserves, beginning of year: | |||||||
Gross | $ | 21,720 | $ | 21,984 | |||
Ceded | 3,835 | 4,019 | |||||
Net reserves, beginning of year | 17,885 | 17,965 | |||||
Net incurred claim and claim adjustment expenses: | |||||||
Provision for insured events of current year | 4,425 | 3,968 | |||||
Increase (decrease) in provision for insured events of prior years | (68 | ) | (65 | ) | |||
Amortization of discount | 143 | 143 | |||||
Total net incurred (1) | 4,500 | 4,046 | |||||
Net payments attributable to: | |||||||
Current year events | (556 | ) | (599 | ) | |||
Prior year events | (3,285 | ) | (3,547 | ) | |||
Total net payments | (3,841 | ) | (4,146 | ) | |||
Foreign currency translation adjustment and other | 39 | 29 | |||||
Net reserves, end of period | 18,583 | 17,894 | |||||
Ceded reserves, end of period | 3,951 | 3,702 | |||||
Gross reserves, end of period | $ | 22,534 | $ | 21,596 |
Three months ended March 31 | |||||||||||
(In millions) | 2021 | 2020 | |||||||||
Pretax (favorable) unfavorable development: | |||||||||||
Specialty | $ | (15) | $ | (11) | |||||||
Commercial | 0 | (4) | |||||||||
International | 0 | 0 | |||||||||
Corporate & Other | 0 | 0 | |||||||||
Total pretax (favorable) unfavorable development | $ | (15) | $ | (15) |
Periods ended September 30 | Three Months | Nine Months | |||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Pretax (favorable) unfavorable development: | |||||||||||||||
Specialty | $ | (16 | ) | $ | (20 | ) | $ | (47 | ) | $ | (58 | ) | |||
Commercial | 1 | 35 | 42 | 15 | |||||||||||
International | 0 | 1 | (3 | ) | 14 | ||||||||||
Corporate & Other | 0 | 0 | 0 | 0 | |||||||||||
Total pretax (favorable) unfavorable development | $ | (15 | ) | $ | 16 | $ | (8 | ) | $ | (29 | ) |
Periods ended September 30 | Three Months | Nine Months | |||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Pretax (favorable) unfavorable development: | |||||||||||||||
Medical Professional Liability | $ | 25 | $ | 29 | $ | 35 | $ | 59 | |||||||
Other Professional Liability and Management Liability | 0 | (18 | ) | (6 | ) | (37 | ) | ||||||||
Surety | (40 | ) | (43 | ) | (70 | ) | (83 | ) | |||||||
Warranty | 0 | 0 | (3 | ) | (7 | ) | |||||||||
Other | (1 | ) | 12 | (3 | ) | 10 | |||||||||
Total pretax (favorable) unfavorable development | $ | (16 | ) | $ | (20 | ) | $ | (47 | ) | $ | (58 | ) |
Three months ended March 31 | |||||||||||
(In millions) | 2021 | 2020 | |||||||||
Pretax (favorable) unfavorable development: | |||||||||||
Medical Professional Liability | $ | 8 | $ | 10 | |||||||
Other Professional Liability and Management Liability | 0 | 3 | |||||||||
Surety | (15) | (30) | |||||||||
Warranty | (8) | 0 | |||||||||
Other | 0 | 6 | |||||||||
Total pretax (favorable) unfavorable development | $ | (15) | $ | (11) |
Periods ended September 30 | Three Months | Nine Months | |||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Pretax (favorable) unfavorable development: | |||||||||||||||
Commercial Auto | $ | 9 | $ | (16 | ) | $ | 33 | $ | (24 | ) | |||||
General Liability | 15 | 43 | 65 | 36 | |||||||||||
Workers' Compensation | (23 | ) | 7 | (97 | ) | 2 | |||||||||
Property and Other | 0 | 1 | 41 | 1 | |||||||||||
Total pretax (favorable) unfavorable development | $ | 1 | $ | 35 | $ | 42 | $ | 15 |
Three months ended March 31 | |||||||||||
(In millions) | 2021 | 2020 | |||||||||
Pretax (favorable) unfavorable development: | |||||||||||
Commercial Auto | $ | 0 | $ | 9 | |||||||
General Liability | 0 | 0 | |||||||||
Workers' Compensation | 0 | (13) | |||||||||
Property and Other | 0 | 0 | |||||||||
Total pretax (favorable) unfavorable development | $ | 0 | $ | (4) |
Periods ended September 30 | Three Months | Nine Months | |||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Pretax (favorable) unfavorable development: | |||||||||||||||
Casualty | $ | (5 | ) | $ | (6 | ) | $ | (11 | ) | $ | (11 | ) | |||
Property, Energy and Marine(1) | 9 | 4 | 10 | 23 | |||||||||||
Specialty | (4 | ) | 3 | (2 | ) | 2 | |||||||||
Total pretax (favorable) unfavorable development | $ | 0 | $ | 1 | $ | (3 | ) | $ | 14 |
24 |
Periods ended September 30 | Three Months | Nine Months | |||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Net periodic pension cost (benefit) | |||||||||||||||
Interest cost on projected benefit obligation | $ | 20 | $ | 25 | $ | 60 | $ | 75 | |||||||
Expected return on plan assets | (38 | ) | (36 | ) | (116 | ) | (107 | ) | |||||||
Amortization of net actuarial (gain) loss | 11 | 10 | 33 | 30 | |||||||||||
Settlement loss | 0 | 0 | 2 | 0 | |||||||||||
Total net periodic pension cost (benefit) | $ | (7 | ) | $ | (1 | ) | $ | (21 | ) | $ | (2 | ) |
Three months ended March 31 | |||||||||||
(In millions) | 2021 | 2020 | |||||||||
Net periodic pension cost (benefit) | |||||||||||
Interest cost on projected benefit obligation | $ | 15 | $ | 20 | |||||||
Expected return on plan assets | (38) | (39) | |||||||||
Amortization of net actuarial (gain) loss | 12 | 11 | |||||||||
Settlement loss | 0 | 1 | |||||||||
Total net periodic pension cost (benefit) | $ | (11) | $ | (7) |
(In millions) | Net unrealized gains (losses) on investments with an allowance for credit losses | Net unrealized gains (losses) on other investments | Pension and postretirement benefits | Cumulative foreign currency translation adjustment | Total | ||||||||||||||||||||||||
Balance as of January 1, 2021 | $ | 0 | $ | 1,745 | $ | (848) | $ | (94) | $ | 803 | |||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (3) | (593) | 0 | 2 | (594) | ||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) net of tax (expense) benefit of $1, $(8), $2, $0 and $(5) | (3) | 34 | (9) | 0 | 22 | ||||||||||||||||||||||||
Other comprehensive income (loss) net of tax (expense) benefit of $0, $162, $(2), $0 and $160 | 0 | (627) | 9 | 2 | (616) | ||||||||||||||||||||||||
Balance as of March 31, 2021 | $ | 0 | $ | 1,118 | $ | (839) | $ | (92) | $ | 187 |
(In millions) | Net unrealized gains (losses) on investments with an allowance for credit losses(1) | Net unrealized gains (losses) on other investments(1) | Pension and postretirement benefits | Cumulative foreign currency translation adjustment | Total | ||||||||||||||
Balance as of July 1, 2020 | $ | (9 | ) | $ | 1,172 | $ | (815 | ) | $ | (194 | ) | $ | 154 | ||||||
Other comprehensive income (loss) before reclassifications | 2 | 231 | (2 | ) | 37 | 268 | |||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) net of tax (expense) benefit of $1, $(7), $2, $- and $(4) | (4 | ) | 24 | (9 | ) | 0 | 11 | ||||||||||||
Other comprehensive income (loss) net of tax (expense) benefit of $(1), $(56), $(3), $- and $(60) | 6 | 207 | 7 | 37 | 257 | ||||||||||||||
Balance as of September 30, 2020 | $ | (3 | ) | $ | 1,379 | $ | (808 | ) | $ | (157 | ) | $ | 411 |
(In millions) | Net unrealized gains (losses) on investments with an allowance for credit losses | Net unrealized gains (losses) on other investments | Pension and postretirement benefits | Cumulative foreign currency translation adjustment | Total | ||||||||||||||||||||||||
Balance as of January 1, 2020 | $ | 0 | $ | 1,025 | $ | (833) | $ | (141) | $ | 51 | |||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (48) | (1,066) | 1 | (77) | (1,190) | ||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) net of tax (expense) benefit of $10, $6, $3, $0 and $19 | (37) | (22) | (10) | 0 | (69) | ||||||||||||||||||||||||
Other comprehensive income (loss) net of tax (expense) benefit of $3, $281, $(3), $0 and $281 | (11) | (1,044) | 11 | (77) | (1,121) | ||||||||||||||||||||||||
Balance as of March 31, 2020 | $ | (11) | $ | (19) | $ | (822) | $ | (218) | $ | (1,070) |
(In millions) | Net unrealized gains (losses) on investments with OTTI losses(1) | Net unrealized gains (losses) on other investments(1) | Pension and postretirement benefits | Cumulative foreign currency translation adjustment | Total | ||||||||||||||
Balance as of July 1, 2019 | $ | 20 | $ | 1,023 | $ | (760 | ) | $ | (163 | ) | $ | 120 | |||||||
Other comprehensive income (loss) before reclassifications | 0 | 44 | 0 | (29 | ) | 15 | |||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) net of tax (expense) benefit of $-, $-, $2, $- and $2 | 0 | 3 | (7 | ) | 0 | (4 | ) | ||||||||||||
Other comprehensive income (loss) net of tax (expense) benefit of $-, $(11), $(2), $- and $(13) | 0 | 41 | 7 | (29 | ) | 19 | |||||||||||||
Balance as of September 30, 2019 | $ | 20 | $ | 1,064 | $ | (753 | ) | $ | (192 | ) | $ | 139 |
(In millions) | Net unrealized gains (losses) on investments with an allowance for credit losses(1) | Net unrealized gains (losses) on other investments(1) | Pension and postretirement benefits | Cumulative foreign currency translation adjustment | Total | ||||||||||||||
Balance as of January 1, 2020 | $ | 0 | $ | 1,025 | $ | (833 | ) | $ | (141 | ) | $ | 51 | |||||||
Other comprehensive income (loss) before reclassifications | (48 | ) | 374 | (3 | ) | (16 | ) | 307 | |||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) net of tax (expense) benefit of $12, $(5), $7, $- and $14 | (45 | ) | 20 | (28 | ) | 0 | (53 | ) | |||||||||||
Other comprehensive income (loss) net of tax (expense) benefit of $1, $(92), $(7), $- and $(98) | (3 | ) | 354 | 25 | (16 | ) | 360 | ||||||||||||
Balance as of September 30, 2020 | $ | (3 | ) | $ | 1,379 | $ | (808 | ) | $ | (157 | ) | $ | 411 |
(In millions) | Net unrealized gains (losses) on investments with OTTI losses(1) | Net unrealized gains (losses) on other investments(1) | Pension and postretirement benefits | Cumulative foreign currency translation adjustment | Total | ||||||||||||||
Balance as of January 1, 2019 | $ | 16 | $ | 61 | $ | (775 | ) | $ | (180 | ) | $ | (878 | ) | ||||||
Other comprehensive income (loss) before reclassifications | 3 | 999 | (1 | ) | (12 | ) | 989 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) net of tax (expense) benefit of $-, $1, $6, $- and $7 | (1 | ) | (4 | ) | (23 | ) | 0 | (28 | ) | ||||||||||
Other comprehensive income (loss) net of tax (expense) benefit of $(2), $(266), $(6), $- and $(274) | 4 | 1,003 | 22 | (12 | ) | 1,017 | |||||||||||||
Balance as of September 30, 2019 | $ | 20 | $ | 1,064 | $ | (753 | ) | $ | (192 | ) | $ | 139 |
Component of AOCI | ||||||||
Net unrealized gains (losses) on investments with an allowance for credit losses | Net investment gains (losses) | |||||||
Pension and postretirement benefits | Other operating expenses and Insurance claims and policyholders' benefits |
Three months ended March 31, 2021 | Specialty | Commercial | International | Life & Group | Corporate & Other | ||||||||||||||||||||||||||||||||||||
(In millions) | Eliminations | Total | |||||||||||||||||||||||||||||||||||||||
Operating revenues | |||||||||||||||||||||||||||||||||||||||||
Net earned premiums | $ | 735 | $ | 855 | $ | 252 | $ | 120 | $ | 0 | $ | 0 | $ | 1,962 | |||||||||||||||||||||||||||
Net investment income | 117 | 148 | 14 | 219 | 6 | 0 | 504 | ||||||||||||||||||||||||||||||||||
Non-insurance warranty revenue | 338 | 0 | 0 | 0 | 0 | 0 | 338 | ||||||||||||||||||||||||||||||||||
Other revenues | 0 | 5 | 0 | 1 | 1 | (2) | 5 | ||||||||||||||||||||||||||||||||||
Total operating revenues | 1,190 | 1,008 | 266 | 340 | 7 | (2) | 2,809 | ||||||||||||||||||||||||||||||||||
Claims, benefits and expenses | |||||||||||||||||||||||||||||||||||||||||
Net incurred claims and benefits | 427 | 639 | 155 | 281 | (2) | 0 | 1,500 | ||||||||||||||||||||||||||||||||||
Policyholders’ dividends | 1 | 5 | 0 | 0 | 0 | 0 | 6 | ||||||||||||||||||||||||||||||||||
Amortization of deferred acquisition costs | 154 | 153 | 52 | 0 | 0 | 0 | 359 | ||||||||||||||||||||||||||||||||||
Non-insurance warranty expense | 311 | 0 | 0 | 0 | 0 | 0 | 311 | ||||||||||||||||||||||||||||||||||
Other insurance related expenses | 70 | 115 | 35 | 25 | 10 | 0 | 255 | ||||||||||||||||||||||||||||||||||
Other expenses | 11 | 9 | (5) | 2 | 42 | (2) | 57 | ||||||||||||||||||||||||||||||||||
Total claims, benefits and expenses | 974 | 921 | 237 | 308 | 50 | (2) | 2,488 | ||||||||||||||||||||||||||||||||||
Core income (loss) before income tax | 216 | 87 | 29 | 32 | (43) | 0 | 321 | ||||||||||||||||||||||||||||||||||
Income tax (expense) benefit on core income (loss) | (46) | (18) | (5) | 4 | 7 | 0 | (58) | ||||||||||||||||||||||||||||||||||
Core income (loss) | $ | 170 | $ | 69 | $ | 24 | $ | 36 | $ | (36) | $ | 0 | 263 | ||||||||||||||||||||||||||||
Net investment gains (losses) | 57 | ||||||||||||||||||||||||||||||||||||||||
Income tax (expense) benefit on net investment gains (losses) | (8) | ||||||||||||||||||||||||||||||||||||||||
Net investment gains (losses), after tax | 49 | ||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 312 |
March 31, 2021 | |||||||||||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||||||||
Reinsurance receivables | $ | 957 | $ | 859 | $ | 300 | $ | 389 | $ | 2,628 | $ | 0 | $ | 5,133 | |||||||||||||||||||||||||||
Insurance receivables | 1,004 | 1,322 | 357 | 2 | 0 | 0 | 2,685 | ||||||||||||||||||||||||||||||||||
Deferred acquisition costs | 340 | 299 | 102 | 0 | 0 | 0 | 741 | ||||||||||||||||||||||||||||||||||
Goodwill | 117 | 0 | 31 | 0 | 0 | 0 | 148 | ||||||||||||||||||||||||||||||||||
Deferred non-insurance warranty acquisition expense | 3,149 | 0 | 0 | 0 | 0 | 0 | 3,149 | ||||||||||||||||||||||||||||||||||
Insurance reserves | |||||||||||||||||||||||||||||||||||||||||
Claim and claim adjustment expenses | 5,916 | 8,449 | 2,142 | 3,726 | 2,823 | 0 | 23,056 | ||||||||||||||||||||||||||||||||||
Unearned premiums | 2,666 | 1,930 | 588 | 135 | 0 | 0 | 5,319 | ||||||||||||||||||||||||||||||||||
Future policy benefits | 0 | 0 | 0 | 12,772 | 0 | 0 | 12,772 | ||||||||||||||||||||||||||||||||||
Deferred non-insurance warranty revenue | 4,119 | 0 | 0 | 0 | 0 | 0 | 4,119 |
Three months ended September 30, 2020 | Specialty | Commercial | International | Life & Group | Corporate & Other | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended March 31, 2020 | Three months ended March 31, 2020 | Specialty | Commercial | International | Life & Group | Corporate & Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | Specialty | Commercial | International | Life & Group | Corporate & Other | Eliminations | Total | (In millions) | Eliminations | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating revenues | Operating revenues | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net earned premiums | $ | 734 | $ | 857 | $ | 236 | $ | 127 | $ | 0 | $ | (1 | ) | $ | 1,953 | Net earned premiums | $ | 685 | $ | 818 | $ | 239 | $ | 127 | $ | 0 | $ | 0 | $ | 1,869 | ||||||||||||||||||||||||||||||||||||||
Net investment income | 126 | 165 | 15 | 208 | 3 | 0 | 517 | Net investment income | 56 | 42 | 15 | 208 | 8 | 0 | 329 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-insurance warranty revenue | 317 | 0 | 0 | 0 | 0 | 0 | 317 | Non-insurance warranty revenue | 301 | 0 | 0 | 0 | 0 | 0 | 301 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other revenues | 0 | 6 | 0 | 0 | 0 | 0 | 6 | Other revenues | 1 | 8 | 0 | 0 | 1 | (2) | 8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total operating revenues | 1,177 | 1,028 | 251 | 335 | 3 | (1 | ) | 2,793 | Total operating revenues | 1,043 | 868 | 254 | 335 | 9 | (2) | 2,507 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Claims, benefits and expenses | Claims, benefits and expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net incurred claims and benefits | 433 | 673 | 150 | 363 | (8 | ) | 0 | 1,611 | Net incurred claims and benefits | 405 | 555 | 154 | 316 | (11) | 0 | 1,419 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Policyholders’ dividends | 0 | 5 | 0 | 0 | 0 | 0 | 5 | Policyholders’ dividends | 1 | 5 | 0 | 0 | 0 | 0 | 6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of deferred acquisition costs | 158 | 150 | 52 | 0 | 0 | 0 | 360 | Amortization of deferred acquisition costs | 151 | 144 | 49 | 0 | 0 | 0 | 344 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-insurance warranty expense | 293 | 0 | 0 | 0 | 0 | 0 | 293 | Non-insurance warranty expense | 281 | 0 | 0 | 0 | 0 | 0 | 281 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other insurance related expenses | 66 | 127 | 31 | 28 | 0 | (1 | ) | 251 | Other insurance related expenses | 69 | 127 | 36 | 26 | 0 | 0 | 258 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other expenses | 14 | 7 | (8 | ) | 3 | 34 | 0 | 50 | Other expenses | 13 | 6 | 13 | 3 | 39 | (2) | 72 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total claims, benefits and expenses | 964 | 962 | 225 | 394 | 26 | (1 | ) | 2,570 | Total claims, benefits and expenses | 920 | 837 | 252 | 345 | 28 | (2) | 2,380 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Core income (loss) before income tax | 213 | 66 | 26 | (59 | ) | (23 | ) | 0 | 223 | Core income (loss) before income tax | 123 | 31 | 2 | (10) | (19) | 0 | 127 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax (expense) benefit on core income (loss) | (45 | ) | (14 | ) | 1 | 24 | 4 | 0 | (30 | ) | Income tax (expense) benefit on core income (loss) | (27) | (8) | 0 | 14 | 2 | 0 | (19) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Core income (loss) | $ | 168 | $ | 52 | $ | 27 | $ | (35 | ) | $ | (19 | ) | $ | 0 | 193 | Core income (loss) | $ | 96 | $ | 23 | $ | 2 | $ | 4 | $ | (17) | $ | 0 | 108 | |||||||||||||||||||||||||||||||||||||||
Net investment gains (losses) | 27 | Net investment gains (losses) | (216) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax (expense) benefit on net investment gains (losses) | (7 | ) | Income tax (expense) benefit on net investment gains (losses) | 47 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment gains (losses), after tax | 20 | Net investment gains (losses), after tax | (169) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 213 | Net income (loss) | $ | (61) |
December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||||||||
Reinsurance receivables | $ | 886 | $ | 848 | $ | 302 | $ | 390 | $ | 2,052 | $ | 0 | $ | 4,478 | |||||||||||||||||||||||||||
Insurance receivables | 1,052 | 1,254 | 328 | 4 | 2 | 0 | 2,640 | ||||||||||||||||||||||||||||||||||
Deferred acquisition costs | 330 | 281 | 97 | 0 | 0 | 0 | 708 | ||||||||||||||||||||||||||||||||||
Goodwill | 117 | 0 | 31 | 0 | 0 | 0 | 148 | ||||||||||||||||||||||||||||||||||
Deferred non-insurance warranty acquisition expense | 3,068 | 0 | 0 | 0 | 0 | 0 | 3,068 | ||||||||||||||||||||||||||||||||||
Insurance reserves | |||||||||||||||||||||||||||||||||||||||||
Claim and claim adjustment expenses | 5,748 | 8,250 | 2,091 | 3,743 | 2,874 | 0 | 22,706 | ||||||||||||||||||||||||||||||||||
Unearned premiums | 2,635 | 1,824 | 546 | 114 | 0 | 0 | 5,119 | ||||||||||||||||||||||||||||||||||
Future policy benefits | 0 | 0 | 0 | 13,318 | 0 | 0 | 13,318 | ||||||||||||||||||||||||||||||||||
Deferred non-insurance warranty revenue | 4,023 | 0 | 0 | 0 | 0 | 0 | 4,023 |
Three months ended September 30, 2019 | Specialty | Commercial | International | Life & Group | Corporate & Other | ||||||||||||||||||||||
(In millions) | Eliminations | Total | |||||||||||||||||||||||||
Operating revenues | |||||||||||||||||||||||||||
Net earned premiums | $ | 712 | $ | 813 | $ | 236 | $ | 130 | $ | 0 | $ | (1 | ) | $ | 1,890 | ||||||||||||
Net investment income | 121 | 136 | 17 | 207 | 6 | 0 | 487 | ||||||||||||||||||||
Non-insurance warranty revenue | 292 | 0 | 0 | 0 | 0 | 0 | 292 | ||||||||||||||||||||
Other revenues | 1 | 10 | (1 | ) | (1 | ) | 1 | (1 | ) | 9 | |||||||||||||||||
Total operating revenues | 1,126 | 959 | 252 | 336 | 7 | (2 | ) | 2,678 | |||||||||||||||||||
Claims, benefits and expenses | |||||||||||||||||||||||||||
Net incurred claims and benefits | 411 | 564 | 163 | 476 | (7 | ) | 0 | 1,607 | |||||||||||||||||||
Policyholders’ dividends | 2 | 5 | 0 | 0 | 0 | 0 | 7 | ||||||||||||||||||||
Amortization of deferred acquisition costs | 155 | 134 | 56 | 0 | 0 | 0 | 345 | ||||||||||||||||||||
Non-insurance warranty expense | 278 | 0 | 0 | 0 | 0 | 0 | 278 | ||||||||||||||||||||
Other insurance related expenses | 71 | 123 | 35 | 29 | 0 | (1 | ) | 257 | |||||||||||||||||||
Other expenses | 13 | 9 | 7 | 1 | 35 | (1 | ) | 64 | |||||||||||||||||||
Total claims, benefits and expenses | 930 | 835 | 261 | 506 | 28 | (2 | ) | 2,558 | |||||||||||||||||||
Core income (loss) before income tax | 196 | 124 | (9 | ) | (170 | ) | (21 | ) | 0 | 120 | |||||||||||||||||
Income tax (expense) benefit on core income (loss) | (43 | ) | (27 | ) | 0 | 48 | 4 | 0 | (18 | ) | |||||||||||||||||
Core income (loss) | $ | 153 | $ | 97 | $ | (9 | ) | $ | (122 | ) | $ | (17 | ) | $ | 0 | 102 | |||||||||||
Net investment gains (losses) | 7 | ||||||||||||||||||||||||||
Income tax (expense) benefit on net investment gains (losses) | (2 | ) | |||||||||||||||||||||||||
Net investment gains (losses), after tax | 5 | ||||||||||||||||||||||||||
Net income (loss) | $ | 107 |
Nine months ended September 30, 2020 | Specialty | Commercial | International | Life & Group | Corporate & Other | ||||||||||||||||||||||
(In millions) | Eliminations | Total | |||||||||||||||||||||||||
Operating revenues | |||||||||||||||||||||||||||
Net earned premiums | $ | 2,124 | $ | 2,470 | $ | 699 | $ | 380 | $ | 0 | $ | (1 | ) | $ | 5,672 | ||||||||||||
Net investment income | 315 | 389 | 44 | 622 | 10 | 0 | 1,380 | ||||||||||||||||||||
Non-insurance warranty revenue | 926 | 0 | 0 | 0 | 0 | 0 | 926 | ||||||||||||||||||||
Other revenues | 1 | 18 | 0 | 0 | 3 | (3 | ) | 19 | |||||||||||||||||||
Total operating revenues | 3,366 | 2,877 | 743 | 1,002 | 13 | (4 | ) | 7,997 | |||||||||||||||||||
Claims, benefits and expenses | |||||||||||||||||||||||||||
Net incurred claims and benefits | 1,346 | 1,897 | 480 | 983 | (40 | ) | 0 | 4,666 | |||||||||||||||||||
Policyholders’ dividends | 2 | 15 | 0 | 0 | 0 | 0 | 17 | ||||||||||||||||||||
Amortization of deferred acquisition costs | 462 | 441 | 143 | 0 | 0 | 0 | 1,046 | ||||||||||||||||||||
Non-insurance warranty expense | 859 | 0 | 0 | 0 | 0 | 0 | 859 | ||||||||||||||||||||
Other insurance related expenses | 208 | 378 | 106 | 79 | (1 | ) | (1 | ) | 769 | ||||||||||||||||||
Other expenses | 37 | 26 | 3 | 6 | 108 | (3 | ) | 177 | |||||||||||||||||||
Total claims, benefits and expenses | 2,914 | 2,757 | 732 | 1,068 | 67 | (4 | ) | 7,534 | |||||||||||||||||||
Core income (loss) before income tax | 452 | 120 | 11 | (66 | ) | (54 | ) | 0 | 463 | ||||||||||||||||||
Income tax (expense) benefit on core income (loss) | (98 | ) | (24 | ) | 4 | 49 | 6 | 0 | (63 | ) | |||||||||||||||||
Core income (loss) | $ | 354 | $ | 96 | $ | 15 | $ | (17 | ) | $ | (48 | ) | $ | 0 | 400 | ||||||||||||
Net investment gains (losses) | (120 | ) | |||||||||||||||||||||||||
Income tax (expense) benefit on net investment gains (losses) | 23 | ||||||||||||||||||||||||||
Net investment gains (losses), after tax | (97 | ) | |||||||||||||||||||||||||
Net income (loss) | $ | 303 |
September 30, 2020 | |||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||
Reinsurance receivables | $ | 855 | $ | 948 | $ | 253 | $ | 401 | $ | 1,937 | $ | 0 | $ | 4,394 | |||||||||||||
Insurance receivables | 1,015 | 1,267 | 269 | 7 | 1 | 0 | 2,559 | ||||||||||||||||||||
Deferred acquisition costs | 324 | 285 | 88 | 0 | 0 | 0 | 697 | ||||||||||||||||||||
Goodwill | 117 | 0 | 29 | 0 | 0 | 0 | 146 | ||||||||||||||||||||
Deferred non-insurance warranty acquisition expense | 2,998 | 0 | 0 | 0 | 0 | 0 | 2,998 | ||||||||||||||||||||
Insurance reserves | |||||||||||||||||||||||||||
Claim and claim adjustment expenses | 5,698 | 9,054 | 1,975 | 3,766 | 2,041 | 0 | 22,534 | ||||||||||||||||||||
Unearned premiums | 2,550 | 1,847 | 502 | 121 | 0 | 0 | 5,020 | ||||||||||||||||||||
Future policy benefits | 0 | 0 | 0 | 12,978 | 0 | 0 | 12,978 | ||||||||||||||||||||
Deferred non-insurance warranty revenue | 3,951 | 0 | 0 | 0 | 0 | 0 | 3,951 |
Nine months ended September 30, 2019 | Specialty | Commercial | International | Life & Group | Corporate & Other | ||||||||||||||||||||||
(In millions) | Eliminations | Total | |||||||||||||||||||||||||
Operating revenues | |||||||||||||||||||||||||||
Net earned premiums | $ | 2,061 | $ | 2,339 | $ | 729 | $ | 390 | $ | 0 | $ | (2 | ) | $ | 5,517 | ||||||||||||
Net investment income | 410 | 480 | 47 | 616 | 20 | 0 | 1,573 | ||||||||||||||||||||
Non-insurance warranty revenue | 858 | 0 | 0 | 0 | 0 | 0 | 858 | ||||||||||||||||||||
Other revenues | 1 | 20 | 0 | 0 | 5 | (4 | ) | 22 | |||||||||||||||||||
Total operating revenues | 3,330 | 2,839 | 776 | 1,006 | 25 | (6 | ) | 7,970 | |||||||||||||||||||
Claims, benefits and expenses | |||||||||||||||||||||||||||
Net incurred claims and benefits | 1,198 | 1,581 | 472 | 1,093 | (40 | ) | 0 | 4,304 | |||||||||||||||||||
Policyholders’ dividends | 4 | 15 | 0 | 0 | 0 | 0 | 19 | ||||||||||||||||||||
Amortization of deferred acquisition costs | 454 | 391 | 180 | 0 | 0 | 0 | 1,025 | ||||||||||||||||||||
Non-insurance warranty expense | 801 | 0 | 0 | 0 | 0 | 0 | 801 | ||||||||||||||||||||
Other insurance related expenses | 217 | 372 | 94 | 87 | (2 | ) | (2 | ) | 766 | ||||||||||||||||||
Other expenses | 37 | 27 | 14 | 5 | 108 | (4 | ) | 187 | |||||||||||||||||||
Total claims, benefits and expenses | 2,711 | 2,386 | 760 | 1,185 | 66 | (6 | ) | 7,102 | |||||||||||||||||||
Core income (loss) before income tax | 619 | 453 | 16 | (179 | ) | (41 | ) | 0 | 868 | ||||||||||||||||||
Income tax (expense) benefit on core income (loss) | (136 | ) | (97 | ) | (2 | ) | 74 | 7 | 0 | (154 | ) | ||||||||||||||||
Core income (loss) | $ | 483 | $ | 356 | $ | 14 | $ | (105 | ) | $ | (34 | ) | $ | 0 | 714 | ||||||||||||
Net investment gains (losses) | 20 | ||||||||||||||||||||||||||
Income tax (expense) benefit on net investment gains (losses) | (7 | ) | |||||||||||||||||||||||||
Net investment gains (losses), after tax | 13 | ||||||||||||||||||||||||||
Net income (loss) | $ | 727 |
December 31, 2019 | |||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||
Reinsurance receivables | $ | 575 | $ | 855 | $ | 247 | $ | 385 | $ | 2,142 | $ | 0 | $ | 4,204 | |||||||||||||
Insurance receivables | 971 | 1,210 | 284 | 16 | 0 | 0 | 2,481 | ||||||||||||||||||||
Deferred acquisition costs | 311 | 257 | 94 | 0 | 0 | 0 | 662 | ||||||||||||||||||||
Goodwill | 117 | 0 | 30 | 0 | 0 | 0 | 147 | ||||||||||||||||||||
Deferred non-insurance warranty acquisition expense | 2,840 | 0 | 0 | 0 | 0 | 0 | 2,840 | ||||||||||||||||||||
Insurance reserves | |||||||||||||||||||||||||||
Claim and claim adjustment expenses | 5,238 | 8,656 | 1,876 | 3,716 | 2,234 | 0 | 21,720 | ||||||||||||||||||||
Unearned premiums | 2,337 | 1,626 | 495 | 125 | 0 | 0 | 4,583 | ||||||||||||||||||||
Future policy benefits | 0 | 0 | 0 | 12,311 | 0 | 0 | 12,311 | ||||||||||||||||||||
Deferred non-insurance warranty revenue | 3,779 | 0 | 0 | 0 | 0 | 0 | 3,779 |
Three months ended March 31 | |||||||||||
(In millions) | 2021 | 2020 | |||||||||
Specialty | |||||||||||
Management & Professional Liability | $ | 667 | $ | 568 | |||||||
Surety | 142 | 138 | |||||||||
Warranty & Alternative Risks | 381 | 337 | |||||||||
Specialty revenues | 1,190 | 1,043 | |||||||||
Commercial | |||||||||||
Middle Market | 375 | 335 | |||||||||
Construction | 309 | 250 | |||||||||
Small Business | 126 | 112 | |||||||||
Other Commercial | 198 | 171 | |||||||||
Commercial revenues | 1,008 | 868 | |||||||||
International | |||||||||||
Canada | 79 | 73 | |||||||||
Europe | 111 | 92 | |||||||||
Hardy | 76 | 89 | |||||||||
International revenues | 266 | 254 | |||||||||
Life & Group revenues | 340 | 335 | |||||||||
Corporate & Other revenues | 7 | 9 | |||||||||
Eliminations | (2) | (2) | |||||||||
Total operating revenues | 2,809 | 2,507 | |||||||||
Net investment gains (losses) | 57 | (216) | |||||||||
Total revenues | $ | 2,866 | $ | 2,291 |
Periods ended September 30 | Three Months | Nine Months | |||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Specialty | |||||||||||||||
Management & Professional Liability | $ | 668 | $ | 638 | $ | 1,881 | $ | 1,903 | |||||||
Surety | 153 | 156 | 444 | 446 | |||||||||||
Warranty & Alternative Risks | 356 | 332 | 1,041 | 981 | |||||||||||
Specialty revenues | 1,177 | 1,126 | 3,366 | 3,330 | |||||||||||
Commercial | |||||||||||||||
Middle Market | 381 | 357 | 1,071 | 1,065 | |||||||||||
Construction (1) | 298 | 265 | 823 | 754 | |||||||||||
Small Business | 126 | 124 | 352 | 377 | |||||||||||
Other Commercial | 223 | 213 | 631 | 643 | |||||||||||
Commercial revenues | 1,028 | 959 | 2,877 | 2,839 | |||||||||||
International | |||||||||||||||
Canada | 73 | 70 | 214 | 204 | |||||||||||
Europe | 96 | 91 | 282 | 270 | |||||||||||
Hardy | 82 | 91 | 247 | 302 | |||||||||||
International revenues | 251 | 252 | 743 | 776 | |||||||||||
Life & Group revenues | 335 | 336 | 1,002 | 1,006 | |||||||||||
Corporate & Other revenues | 3 | 7 | 13 | 25 | |||||||||||
Eliminations | (1 | ) | (2 | ) | (4 | ) | (6 | ) | |||||||
Total operating revenues | 2,793 | 2,678 | 7,997 | 7,970 | |||||||||||
Net investment gains (losses) | 27 | 7 | (120 | ) | 20 | ||||||||||
Total revenues | $ | 2,820 | $ | 2,685 | $ | 7,877 | $ | 7,990 |
(In millions) | September 30, 2020 | ||
A- to A++ | $ | 2,729 | |
B- to B++ | 874 | ||
Insolvent | 4 | ||
Total voluntary reinsurance outstanding balance(1) | $ | 3,607 |
Periods ended September 30 | Three Months | Nine Months | |||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Operating Revenues | |||||||||||||||
Net earned premiums | $ | 1,953 | $ | 1,890 | $ | 5,672 | $ | 5,517 | |||||||
Net investment income | 517 | 487 | 1,380 | 1,573 | |||||||||||
Non-insurance warranty revenue | 317 | 292 | 926 | 858 | |||||||||||
Other revenues | 6 | 9 | 19 | 22 | |||||||||||
Total operating revenues | 2,793 | 2,678 | 7,997 | 7,970 | |||||||||||
Claims, Benefits and Expenses | |||||||||||||||
Net incurred claims and benefits | 1,611 | 1,607 | 4,666 | 4,304 | |||||||||||
Policyholders' dividends | 5 | 7 | 17 | 19 | |||||||||||
Amortization of deferred acquisition costs | 360 | 345 | 1,046 | 1,025 | |||||||||||
Non-insurance warranty expense | 293 | 278 | 859 | 801 | |||||||||||
Other insurance related expenses | 251 | 257 | 769 | 766 | |||||||||||
Other expenses | 50 | 64 | 177 | 187 | |||||||||||
Total claims, benefits and expenses | 2,570 | 2,558 | 7,534 | 7,102 | |||||||||||
Core income before income tax | 223 | 120 | 463 | 868 | |||||||||||
Income tax expense on core income | (30 | ) | (18 | ) | (63 | ) | (154 | ) | |||||||
Core income | 193 | 102 | 400 | 714 | |||||||||||
Net investment gains (losses) | 27 | 7 | (120 | ) | 20 | ||||||||||
Income tax (expense) benefit on net investment gains (losses) | (7 | ) | (2 | ) | 23 | (7 | ) | ||||||||
Net investment gains (losses), after tax | 20 | 5 | (97 | ) | 13 | ||||||||||
Net income | $ | 213 | $ | 107 | $ | 303 | $ | 727 |
Three months ended March 31 | |||||||||||
(In millions) | 2021 | 2020 | |||||||||
Operating Revenues | |||||||||||
Net earned premiums | $ | 1,962 | $ | 1,869 | |||||||
Net investment income | 504 | 329 | |||||||||
Non-insurance warranty revenue | 338 | 301 | |||||||||
Other revenues | 5 | 8 | |||||||||
Total operating revenues | 2,809 | 2,507 | |||||||||
Claims, Benefits and Expenses | |||||||||||
Net incurred claims and benefits | 1,500 | 1,419 | |||||||||
Policyholders' dividends | 6 | 6 | |||||||||
Amortization of deferred acquisition costs | 359 | 344 | |||||||||
Non-insurance warranty expense | 311 | 281 | |||||||||
Other insurance related expenses | 255 | 258 | |||||||||
Other expenses | 57 | 72 | |||||||||
Total claims, benefits and expenses | 2,488 | 2,380 | |||||||||
Core income before income tax | 321 | 127 | |||||||||
Income tax expense on core income | (58) | (19) | |||||||||
Core income | 263 | 108 | |||||||||
Net investment gains (losses) | 57 | (216) | |||||||||
Income tax (expense) benefit on net investment gains (losses) | (8) | 47 | |||||||||
Net investment gains (losses), after tax | 49 | (169) | |||||||||
Net income (loss) | $ | 312 | $ | (61) |
Periods ended September 30 | Three Months | Nine Months | |||||||||||||
(In millions, except ratios, rate, renewal premium change and retention) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Gross written premiums | $ | 1,855 | $ | 1,766 | $ | 5,331 | $ | 5,191 | |||||||
Gross written premiums excluding third party captives | 861 | 778 | 2,413 | 2,263 | |||||||||||
Net written premiums | 795 | 732 | 2,231 | 2,143 | |||||||||||
Net earned premiums | 734 | 712 | 2,124 | 2,061 | |||||||||||
Net investment income | 126 | 121 | 315 | 410 | |||||||||||
Core income | 168 | 153 | 354 | 483 | |||||||||||
Other performance metrics: | |||||||||||||||
Loss ratio excluding catastrophes and development | 60.0 | % | 60.1 | % | 59.8 | % | 60.2 | % | |||||||
Effect of catastrophe impacts | 1.0 | 0.5 | 5.7 | 0.8 | |||||||||||
Effect of development-related items | (2.0 | ) | (2.8 | ) | (2.1 | ) | (2.9 | ) | |||||||
Loss ratio | 59.0 | % | 57.8 | % | 63.4 | % | 58.1 | % | |||||||
Expense ratio | 30.5 | 31.8 | 31.5 | 32.6 | |||||||||||
Dividend ratio | — | 0.2 | 0.1 | 0.2 | |||||||||||
Combined ratio | 89.5 | % | 89.8 | % | 95.0 | % | 90.9 | % | |||||||
Combined ratio excluding catastrophes and development | 90.5 | % | 92.1 | % | 91.4 | % | 93.0 | % | |||||||
Rate | 13 | % | 6 | % | 11 | % | 4 | % | |||||||
Renewal premium change | 12 | 9 | 11 | 7 | |||||||||||
Retention | 86 | 87 | 85 | 88 | |||||||||||
New business | $ | 104 | $ | 91 | $ | 275 | $ | 274 |
Three months ended March 31 | |||||||||||
(In millions, except ratios, rate, renewal premium change and retention) | 2021 | 2020 | |||||||||
Gross written premiums | $ | 1,794 | $ | 1,714 | |||||||
Gross written premiums excluding third party captives | 816 | 741 | |||||||||
Net written premiums | 742 | 694 | |||||||||
Net earned premiums | 735 | 685 | |||||||||
Net investment income | 117 | 56 | |||||||||
Core income | 170 | 96 | |||||||||
Other performance metrics: | |||||||||||
Loss ratio excluding catastrophes and development | 59.4 | % | 59.5 | % | |||||||
Effect of catastrophe impacts | 0.7 | 1.1 | |||||||||
Effect of development-related items | (2.1) | (1.5) | |||||||||
Loss ratio | 58.0 | 59.1 | |||||||||
Expense ratio | 30.6 | 32.0 | |||||||||
Dividend ratio | 0.2 | 0.2 | |||||||||
Combined ratio | 88.8 | % | 91.3 | % | |||||||
Combined ratio excluding catastrophes and development | 90.2 | % | 91.7 | % | |||||||
Rate | 10 | % | 10 | % | |||||||
Renewal premium change | 9 | 11 | |||||||||
Retention | 86 | 83 | |||||||||
New business | $ | 103 | $ | 74 |
(In millions) | March 31, 2021 | December 31, 2020 | |||||||||
Gross case reserves | $ | 1,575 | $ | 1,567 | |||||||
Gross IBNR reserves | 4,341 | 4,181 | |||||||||
Total gross carried claim and claim adjustment expense reserves | $ | 5,916 | $ | 5,748 | |||||||
Net case reserves | $ | 1,418 | $ | 1,410 | |||||||
Net IBNR reserves | 3,577 | 3,488 | |||||||||
Total net carried claim and claim adjustment expense reserves | $ | 4,995 | $ | 4,898 |
Three months ended March 31 | |||||||||||
(In millions, except ratios, rate, renewal premium change and retention) | 2021 | 2020 | |||||||||
Gross written premiums | $ | 1,113 | $ | 1,062 | |||||||
Gross written premiums excluding third party captives | 1,111 | 1,059 | |||||||||
Net written premiums | 960 | 950 | |||||||||
Net earned premiums | 855 | 818 | |||||||||
Net investment income | 148 | 42 | |||||||||
Core income | 69 | 23 | |||||||||
Other performance metrics: | |||||||||||
Loss ratio excluding catastrophes and development | 60.8 | % | 60.8 | % | |||||||
Effect of catastrophe impacts | 13.4 | 7.0 | |||||||||
Effect of development-related items | 0.5 | — | |||||||||
Loss ratio | 74.7 | 67.8 | |||||||||
Expense ratio | 31.4 | 33.2 | |||||||||
Dividend ratio | 0.6 | 0.6 | |||||||||
Combined ratio | 106.7 | % | 101.6 | % | |||||||
Combined ratio excluding catastrophes and development | 92.8 | % | 94.6 | % | |||||||
Rate | 10 | % | 8 | % | |||||||
Renewal premium change | 8 | 9 | |||||||||
Retention | 84 | 86 | |||||||||
New business | $ | 211 | $ | 198 |
(In millions) | March 31, 2021 | December 31, 2020 | |||||||||
Gross case reserves | $ | 3,238 | $ | 3,215 | |||||||
Gross IBNR reserves | 5,211 | 5,035 | |||||||||
Total gross carried claim and claim adjustment expense reserves | $ | 8,449 | $ | 8,250 | |||||||
Net case reserves | $ | 2,925 | $ | 2,885 | |||||||
Net IBNR reserves | 4,732 | 4,590 | |||||||||
Total net carried claim and claim adjustment expense reserves | $ | 7,657 | $ | 7,475 |
(In millions) | September 30, 2020 | December 31, 2019 | |||||
Gross case reserves | $ | 1,580 | $ | 1,481 | |||
Gross IBNR reserves | 4,118 | 3,757 | |||||
Total gross carried claim and claim adjustment expense reserves | $ | 5,698 | $ | 5,238 | |||
Net case reserves | $ | 1,412 | $ | 1,343 | |||
Net IBNR reserves | 3,464 | 3,333 | |||||
Total net carried claim and claim adjustment expense reserves | $ | 4,876 | $ | 4,676 |
Periods ended September 30 | Three Months | Nine Months | |||||||||||||
(In millions, except ratios, rate, renewal premium change and retention) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Gross written premiums | $ | 915 | $ | 860 | $ | 3,103 | $ | 2,825 | |||||||
Gross written premiums excluding third party captives | 915 | 852 | 3,018 | 2,742 | |||||||||||
Net written premiums | 804 | 775 | 2,703 | 2,536 | |||||||||||
Net earned premiums | 857 | 813 | 2,470 | 2,339 | |||||||||||
Net investment income | 165 | 136 | 389 | 480 | |||||||||||
Core income | 52 | 97 | 96 | 356 | |||||||||||
Other performance metrics: | |||||||||||||||
Loss ratio excluding catastrophes and development | 61.0 | % | 61.5 | % | 60.4 | % | 61.8 | % | |||||||
Effect of catastrophe impacts | 17.0 | 3.0 | 14.3 | 4.3 | |||||||||||
Effect of development-related items | 0.6 | 4.8 | 2.1 | 1.5 | |||||||||||
Loss ratio | 78.6 | % | 69.3 | % | 76.8 | % | 67.6 | % | |||||||
Expense ratio | 32.3 | 31.7 | 33.2 | 32.7 | |||||||||||
Dividend ratio | 0.6 | 0.6 | 0.6 | 0.6 | |||||||||||
Combined ratio | 111.5 | % | 101.6 | % | 110.6 | % | 100.9 | % | |||||||
Combined ratio excluding catastrophes and development | 93.9 | % | 93.8 | % | 94.2 | % | 95.1 | % | |||||||
Rate | 11 | % | 4 | % | 9 | % | 3 | % | |||||||
Renewal premium change | 8 | 5 | 8 | 5 | |||||||||||
Retention | 81 | 86 | 84 | 86 | |||||||||||
New business | $ | 168 | $ | 173 | $ | 564 | $ | 522 |
Three months ended March 31 | |||||||||||
(In millions, except ratios, rate, renewal premium change and retention) | 2021 | 2020 | |||||||||
Gross written premiums | $ | 343 | $ | 307 | |||||||
Net written premiums | 235 | 219 | |||||||||
Net earned premiums | 252 | 239 | |||||||||
Net investment income | 14 | 15 | |||||||||
Core income | 24 | 2 | |||||||||
Other performance metrics: | |||||||||||
Loss ratio excluding catastrophes and development | 59.6 | % | 60.3 | % | |||||||
Effect of catastrophe impacts | 2.0 | 4.3 | |||||||||
Effect of development-related items | (0.1) | (0.1) | |||||||||
Loss ratio | 61.5 | 64.5 | |||||||||
Expense ratio | 34.4 | 35.4 | |||||||||
Combined ratio | 95.9 | % | 99.9 | % | |||||||
Combined ratio excluding catastrophes and development | 94.0 | % | 95.7 | % | |||||||
Rate | 14 | % | 9 | % | |||||||
Renewal premium change | 11 | 9 | |||||||||
Retention | 74 | 70 | |||||||||
New business | $ | 80 | $ | 68 |
(In millions) | September 30, 2020 | December 31, 2019 | |||||
Gross case reserves | $ | 3,776 | $ | 3,937 | |||
Gross IBNR reserves | 5,278 | 4,719 | |||||
Total gross carried claim and claim adjustment expense reserves | $ | 9,054 | $ | 8,656 | |||
Net case reserves | $ | 3,378 | $ | 3,543 | |||
Net IBNR reserves | 4,819 | 4,306 | |||||
Total net carried claim and claim adjustment expense reserves | $ | 8,197 | $ | 7,849 |
Periods ended September 30 | Three Months | Nine Months | |||||||||||||
(In millions, except ratios, rate, renewal premium change and retention) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Gross written premiums | $ | 238 | $ | 226 | $ | 822 | $ | 837 | |||||||
Net written premiums | 222 | 201 | 680 | 709 | |||||||||||
Net earned premiums | 236 | 236 | 699 | 729 | |||||||||||
Net investment income | 15 | 17 | 44 | 47 | |||||||||||
Core income (loss) | 27 | (9 | ) | 15 | 14 | ||||||||||
Other performance metrics: | |||||||||||||||
Loss ratio excluding catastrophes and development | 60.1 | % | 67.3 | % | 60.1 | % | 61.4 | % | |||||||
Effect of catastrophe impacts | 3.0 | 1.7 | 8.9 | 1.4 | |||||||||||
Effect of development-related items | 0.1 | 0.4 | (0.4 | ) | 1.9 | ||||||||||
Loss ratio | 63.2 | % | 69.4 | % | 68.6 | % | 64.7 | % | |||||||
Expense ratio | 34.9 | 38.0 | 35.6 | 37.5 | |||||||||||
Combined ratio | 98.1 | % | 107.4 | % | 104.2 | % | 102.2 | % | |||||||
Combined ratio excluding catastrophes and development | 95.0 | % | 105.3 | % | 95.7 | % | 98.9 | % | |||||||
Rate | 16 | % | 10 | % | 12 | % | 7 | % | |||||||
Renewal premium change | 14 | 6 | 11 | 5 | |||||||||||
Retention | 70 | 74 | 71 | 70 | |||||||||||
New business | $ | 58 | $ | 52 | $ | 187 | $ | 207 |
(In millions) | March 31, 2021 | December 31, 2020 | |||||||||
Gross case reserves | $ | 861 | $ | 892 | |||||||
Gross IBNR reserves | 1,281 | 1,199 | |||||||||
Total gross carried claim and claim adjustment expense reserves | $ | 2,142 | $ | 2,091 | |||||||
Net case reserves | $ | 740 | $ | 777 | |||||||
Net IBNR reserves | 1,112 | 1,045 | |||||||||
Total net carried claim and claim adjustment expense reserves | $ | 1,852 | $ | 1,822 |
(In millions) | September 30, 2020 | December 31, 2019 | |||||
Gross case reserves | $ | 821 | $ | 858 | |||
Gross IBNR reserves | 1,154 | 1,018 | |||||
Total gross carried claim and claim adjustment expense reserves | $ | 1,975 | $ | 1,876 | |||
Net case reserves | $ | 718 | $ | 759 | |||
Net IBNR reserves | 997 | 869 | |||||
Total net carried claim and claim adjustment expense reserves | $ | 1,715 | $ | 1,628 |
Periods ended September 30 | Three Months | Nine Months | |||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Net earned premiums | $ | 127 | $ | 130 | $ | 380 | $ | 390 | |||||||
Net investment income | 208 | 207 | 622 | 616 | |||||||||||
Core loss before income tax | (59 | ) | (170 | ) | (66 | ) | (179 | ) | |||||||
Income tax benefit on core loss | 24 | 48 | 49 | 74 | |||||||||||
Core loss | (35 | ) | (122 | ) | (17 | ) | (105 | ) |
Three months ended March 31 | |||||||||||
(In millions) | 2021 | 2020 | |||||||||
Net earned premiums | $ | 120 | $ | 127 | |||||||
Net investment income | 219 | 208 | |||||||||
Core income (loss) before income tax | 32 | (10) | |||||||||
Income tax benefit on core loss | 4 | 14 | |||||||||
Core income | 36 | 4 |
Long Term Care Active Life Reserve - Change in estimated reserve margin (In millions) | |||
September 30, 2019 Estimated Margin | $ | — | |
Changes in underlying discount rate assumptions | (609 | ) | |
Changes in underlying morbidity assumptions | 51 | ||
Changes in underlying persistency assumptions | 152 | ||
Changes in underlying premium rate action assumptions | 318 | ||
Changes in underlying expense and other assumptions | 14 | ||
September 30, 2020 Premium Deficiency | $ | (74 | ) |
September 30, 2020 | |||
Estimated reduction to pretax income | |||
Hypothetical revisions (In millions) | |||
Morbidity: | |||
2.5% increase in morbidity | $ | 339 | |
5% increase in morbidity | 677 | ||
Persistency: | |||
5% decrease in active life mortality and lapse | $ | 254 | |
10% decrease in active life mortality and lapse | 469 | ||
Discount Rates: | |||
25 basis point decline in new money interest rates | $ | 175 | |
50 basis point decline in new money interest rates | 356 | ||
Premium Rate Actions: | |||
25% decrease in anticipated future premium rate increases | $ | 66 | |
50% decrease in anticipated future premium rate increases | 132 |
September 30, 2020 | |||||||||||
(In millions) | Claim and claim adjustment expenses | Future policy benefits | Total | ||||||||
Long term care | $ | 2,866 | $ | 9,678 | $ | 12,544 | |||||
Structured settlement annuities | 547 | — | 547 | ||||||||
Other | 12 | — | 12 | ||||||||
Total | 3,425 | 9,678 | 13,103 | ||||||||
Shadow adjustments (1) | 204 | 3,035 | 3,239 | ||||||||
Ceded reserves (2) | 137 | 265 | 402 | ||||||||
Total gross reserves | $ | 3,766 | $ | 12,978 | $ | 16,744 |
December 31, 2019 | |||||||||||
(In millions) | Claim and claim adjustment expenses | Future policy benefits | Total | ||||||||
Long term care | $ | 2,863 | $ | 9,470 | $ | 12,333 | |||||
Structured settlement annuities | 515 | — | 515 | ||||||||
Other | 12 | — | 12 | ||||||||
Total | 3,390 | 9,470 | 12,860 | ||||||||
Shadow adjustments (1) | 167 | 2,615 | 2,782 | ||||||||
Ceded reserves (2) | 159 | 226 | 385 | ||||||||
Total gross reserves | $ | 3,716 | $ | 12,311 | $ | 16,027 |
Three months ended March 31 | |||||||||||
(In millions) | 2021 | 2020 | |||||||||
Net investment income | $ | 6 | $ | 8 | |||||||
Interest expense | 28 | 31 | |||||||||
Core loss | (36) | (17) |
Periods ended September 30 | Three Months | Nine Months | |||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Net investment income | $ | 3 | $ | 6 | $ | 10 | $ | 20 | |||||||
Interest expense | 32 | 31 | 94 | 99 | |||||||||||
Core loss | (19 | ) | (17 | ) | (48 | ) | (34 | ) |
(In millions) | March 31, 2021 | December 31, 2020 | |||||||||
Gross case reserves | $ | 1,626 | $ | 1,614 | |||||||
Gross IBNR reserves | 1,197 | 1,260 | |||||||||
Total gross carried claim and claim adjustment expense reserves | $ | 2,823 | $ | 2,874 | |||||||
Net case reserves | $ | 123 | $ | 560 | |||||||
Net IBNR reserves | 130 | 331 | |||||||||
Total net carried claim and claim adjustment expense reserves | $ | 253 | $ | 891 |
(In millions) | September 30, 2020 | December 31, 2019 | |||||
Gross case reserves | $ | 1,147 | $ | 1,137 | |||
Gross IBNR reserves | 894 | 1,097 | |||||
Total gross carried claim and claim adjustment expense reserves | $ | 2,041 | $ | 2,234 | |||
Net case reserves | $ | 90 | $ | 92 | |||
Net IBNR reserves | 76 | 83 | |||||
Total net carried claim and claim adjustment expense reserves | $ | 166 | $ | 175 |
Three months ended March 31 | |||||||||||
(In millions) | 2021 | 2020 | |||||||||
Fixed income securities: | |||||||||||
Taxable fixed income securities | $ | 359 | $ | 371 | |||||||
Tax-exempt fixed income securities | 80 | 78 | |||||||||
Total fixed income securities | 439 | 449 | |||||||||
Limited partnership investments | 43 | (70) | |||||||||
Common stock | 18 | (55) | |||||||||
Other, net of investment expense | 4 | 5 | |||||||||
Net investment income | $ | 504 | $ | 329 | |||||||
Effective income yield for the fixed income securities portfolio | 4.4 | % | 4.6 | % | |||||||
Limited partnership and common stock return | 3.4 | % | (7.0) | % |
Periods ended September 30 | Three Months | Nine Months | |||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Fixed income securities: | |||||||||||||||
Taxable fixed income securities | $ | 363 | $ | 383 | $ | 1,094 | $ | 1,151 | |||||||
Tax-exempt fixed income securities | 80 | 79 | 238 | 241 | |||||||||||
Total fixed income securities | 443 | 462 | 1,332 | 1,392 | |||||||||||
Limited partnership investments | 64 | 12 | 38 | 125 | |||||||||||
Common stock | 7 | 6 | (8 | ) | 32 | ||||||||||
Other, net of investment expense | 3 | 7 | 18 | 24 | |||||||||||
Pretax net investment income | $ | 517 | $ | 487 | $ | 1,380 | $ | 1,573 | |||||||
Fixed income securities, after tax | $ | 364 | $ | 378 | $ | 1,092 | $ | 1,140 | |||||||
Net investment income, after tax | 421 | 399 | 1,130 | 1,284 | |||||||||||
Effective income yield for the fixed income securities portfolio, pretax | 4.5 | % | 4.8 | % | 4.6 | % | 4.8 | % | |||||||
Effective income yield for the fixed income securities portfolio, after tax | 3.7 | % | 3.9 | % | 3.7 | % | 3.9 | % | |||||||
Limited partnership and common stock return | 4.1 | % | 0.9 | % | 1.7 | % | 7.7 | % |
Periods ended September 30 | Three Months | Nine Months | ||||||||||||||||||||||||
Three months ended March 31 | Three months ended March 31 | |||||||||||||||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | (In millions) | 2021 | 2020 | |||||||||||||||||||
Fixed maturity securities: | Fixed maturity securities: | |||||||||||||||||||||||||
Corporate and other bonds | $ | 14 | $ | 7 | $ | (105 | ) | $ | — | Corporate and other bonds | $ | 36 | $ | (79) | ||||||||||||
States, municipalities and political subdivisions | 6 | 1 | 39 | 13 | States, municipalities and political subdivisions | (1) | — | |||||||||||||||||||
Asset-backed | 6 | (5 | ) | 34 | (19 | ) | Asset-backed | 3 | 4 | |||||||||||||||||
Total fixed maturity securities | 26 | 3 | (32 | ) | (6 | ) | Total fixed maturity securities | 38 | (75) | |||||||||||||||||
Non-redeemable preferred stock | 25 | 7 | (45 | ) | 60 | Non-redeemable preferred stock | 2 | (133) | ||||||||||||||||||
Short term and other | (21 | ) | (3 | ) | (27 | ) | (34 | ) | Short term and other | 17 | 5 | |||||||||||||||
Mortgage loans | (3 | ) | — | (16 | ) | — | Mortgage loans | — | (13) | |||||||||||||||||
Net investment gains (losses) | 27 | 7 | (120 | ) | 20 | Net investment gains (losses) | 57 | (216) | ||||||||||||||||||
Income tax (expense) benefit on net investment gains (losses) | (7 | ) | (2 | ) | 23 | (7 | ) | Income tax (expense) benefit on net investment gains (losses) | (8) | 47 | ||||||||||||||||
Net investment gains (losses), after tax | $ | 20 | $ | 5 | $ | (97 | ) | $ | 13 | Net investment gains (losses), after tax | $ | 49 | $ | (169) |
September 30, 2020 | December 31, 2019 | March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||
(In millions) | Estimated Fair Value | Net Unrealized Gains (Losses) | Estimated Fair Value | Net Unrealized Gains (Losses) | (In millions) | Estimated Fair Value | Net Unrealized Gains (Losses) | Estimated Fair Value | Net Unrealized Gains (Losses) | |||||||||||||||||||||||||||||
U.S. Government, Government agencies and Government-sponsored enterprises | $ | 4,026 | $ | 127 | $ | 4,136 | $ | 95 | U.S. Government, Government agencies and Government-sponsored enterprises | $ | 3,149 | $ | 36 | $ | 3,672 | $ | 117 | |||||||||||||||||||||
AAA | 3,623 | 452 | 3,254 | 349 | AAA | 3,589 | 385 | 3,627 | 454 | |||||||||||||||||||||||||||||
AA | 6,773 | 961 | 6,663 | 801 | AA | 7,221 | 802 | 7,159 | 1,012 | |||||||||||||||||||||||||||||
A | 9,470 | 1,296 | 9,062 | 1,051 | A | 9,380 | 1,057 | 9,543 | 1,390 | |||||||||||||||||||||||||||||
BBB | 17,488 | 2,105 | 16,839 | 1,684 | BBB | 17,692 | 1,920 | 18,007 | 2,596 | |||||||||||||||||||||||||||||
Non-investment grade | 2,521 | 38 | 2,253 | 101 | Non-investment grade | 2,548 | 131 | 2,623 | 149 | |||||||||||||||||||||||||||||
Total | $ | 43,901 | $ | 4,979 | $ | 42,207 | $ | 4,081 | Total | $ | 43,579 | $ | 4,331 | $ | 44,631 | $ | 5,718 |
March 31, 2021 | |||||||||||
(In millions) | Estimated Fair Value | Gross Unrealized Losses | |||||||||
U.S. Government, Government agencies and Government-sponsored enterprises | $ | 1,631 | $ | 47 | |||||||
AAA | 202 | 9 | |||||||||
AA | 896 | 29 | |||||||||
A | 1,096 | 33 | |||||||||
BBB | 1,372 | 47 | |||||||||
Non-investment grade | 364 | 17 | |||||||||
Total | $ | 5,561 | $ | 182 |
September 30, 2020 | |||||||
(In millions) | Estimated Fair Value | Gross Unrealized Losses | |||||
U.S. Government, Government agencies and Government-sponsored enterprises | $ | 99 | $ | 1 | |||
AAA | 37 | 1 | |||||
AA | 244 | 9 | |||||
A | 642 | 21 | |||||
BBB | 1,264 | 71 | |||||
Non-investment grade | 816 | 78 | |||||
Total | $ | 3,102 | $ | 181 |
March 31, 2021 | |||||||||||
(In millions) | Estimated Fair Value | Gross Unrealized Losses | |||||||||
Due in one year or less | $ | 135 | $ | 5 | |||||||
Due after one year through five years | 672 | 21 | |||||||||
Due after five years through ten years | 3,090 | 82 | |||||||||
Due after ten years | 1,664 | 74 | |||||||||
Total | $ | 5,561 | $ | 182 |
September 30, 2020 | |||||||
(In millions) | Estimated Fair Value | Gross Unrealized Losses | |||||
Due in one year or less | $ | 142 | $ | 8 | |||
Due after one year through five years | 819 | 54 | |||||
Due after five years through ten years | 1,479 | 83 | |||||
Due after ten years | 662 | 36 | |||||
Total | $ | 3,102 | $ | 181 |
September 30, 2020 | December 31, 2019 | March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||
(In millions) | Estimated Fair Value | Effective Duration (In years) | Estimated Fair Value | Effective Duration (In years) | (In millions) | Estimated Fair Value | Effective Duration (In years) | Estimated Fair Value | Effective Duration (In years) | |||||||||||||||||||||||||||
Investments supporting Life & Group | $ | 18,700 | 9.0 | $ | 18,015 | 8.9 | Investments supporting Life & Group | $ | 17,952 | 9.1 | $ | 18,518 | 9.2 | |||||||||||||||||||||||
Other investments | 27,408 | 4.5 | 26,813 | 4.1 | Other investments | 27,666 | 4.9 | 28,839 | 4.5 | |||||||||||||||||||||||||||
Total | $ | 46,108 | 6.3 | $ | 44,828 | 6.0 | Total | $ | 45,618 | 6.5 | $ | 47,357 | 6.3 |
(In millions) | March 31, 2021 | December 31, 2020 | |||||||||
Short term investments: | |||||||||||
U.S. Treasury securities | $ | 1,109 | $ | 1,702 | |||||||
Other | 225 | 205 | |||||||||
Total short term investments | $ | 1,334 | $ | 1,907 |
(In millions) | September 30, 2020 | December 31, 2019 | |||||
Short term investments: | |||||||
Commercial paper | $ | — | $ | 1,181 | |||
U.S. Treasury securities | 1,247 | 364 | |||||
Other | 215 | 316 | |||||
Total short term investments | $ | 1,462 | $ | 1,861 |
Period | (a) Total number of shares purchased | (b) Average price paid per share | (c) Total number of shares purchased as part of publicly announced plans or programs | (d) Maximum number (or approximate dollar value) of shares that may yet be purchased under the plans or programs (in millions) | |||||||||||||||||||||||||||||||
March 1, 2021 - March 31, 2021 | 66,000 | $ | 46.32 | N/A | N/A | ||||||||||||||||||||||||||||||
Total | 66,000 | N/A | N/A |
CNA Financial Corporation | ||||||||
Dated: May 7, 2021 | By | |||||||
/s/ Albert J. Miralles | ||||||||
Albert J. Miralles Executive Vice President and Chief Financial Officer (Duly authorized officer and principal financial and accounting officer) |
Description of Exhibit | Exhibit Number | |||||
31.1 | ||||||
31.2 | ||||||
32.1 | ||||||
32.2 | ||||||
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | 101.INS | |||||
Inline XBRL Taxonomy Extension Schema | 101.SCH | |||||
Inline XBRL Taxonomy Extension Calculation Linkbase | 101.CAL | |||||
Inline XBRL Taxonomy Extension Definition Linkbase | 101.DEF | |||||
Inline XBRL Taxonomy Label Linkbase | 101.LAB | |||||
Inline XBRL Taxonomy Extension Presentation Linkbase | 101.PRE | |||||
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | 104.1 |