Delaware | 13-2646102 | |||
(State or other jurisdiction of | (I.R.S. Employer | |||
Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common stock, | L | New York Stock Exchange |
Yes☒ | No ☐ | |||
Yes☒ | No ☐ | ||||
Large accelerated filer | Accelerated filer | Non-accelerated filer | Smaller reporting company |
Emerging growth company ☐ |
Yes ☐ | No ☒ | |||
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9 | ||||
37 | ||||
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58 | ||||
58 | ||||
59 | ||||
64 | ||||
64 |
June 30, 2019 | December 31, 2018 | June 30, 2020 | December 31, 2019 | |||||||||||||
(Dollar amounts in millions, except per share data) | ||||||||||||||||
Assets: | ||||||||||||||||
Investments: | ||||||||||||||||
Fixed maturities, amortized cost of $38,045 and $ 38,234 | $ | 41,663 | $ | 39,699 | ||||||||||||
Equity securities, cost of $ 1,385 and $ 1,479 | 1,367 | 1,293 | ||||||||||||||
Fixed maturities, amortized cost of $38,414 and $38,157, less allowance for credit loss of $51 and $0 | $ | 42,799 | $ | 42,240 | ||||||||||||
Equity securities, cost of $1,349 and $1,244 | 1,305 | 1,306 | ||||||||||||||
Limited partnership investments | 2,036 | 2,424 | 1,742 | 2,004 | ||||||||||||
Other invested assets, primarily mortgage loans | 985 | 901 | ||||||||||||||
Other invested assets, primarily mortgage loans, less allowance for credit loss of $20 and $0 | 1,125 | 1,072 | ||||||||||||||
Short term investments | 4,689 | 3,869 | 4,515 | 4,628 | ||||||||||||
Total investments | 50,740 | 48,186 | 51,486 | 51,250 | ||||||||||||
Cash | 440 | 405 | 668 | 336 | ||||||||||||
Receivables | 8,144 | 7,960 | 8,431 | 7,675 | ||||||||||||
Property, plant and equipment | 15,513 | 15,511 | 10,475 | 15,568 | ||||||||||||
Goodwill | 768 | 665 | 764 | 767 | ||||||||||||
Deferred non-insurance warranty acquisition expenses | 2,678 | 2,513 | 2,916 | 2,840 | ||||||||||||
Deferred acquisition costs of insurance subsidiaries | 681 | 633 | 699 | 662 | ||||||||||||
Other assets | 3,313 | 2,443 | 3,000 | 3,145 | ||||||||||||
Total assets | $ | 82,277 | $ | 78,316 | $ | 78,439 | $ | 82,243 | ||||||||
Liabilities and Equity: | ||||||||||||||||
Insurance reserves: | ||||||||||||||||
Claim and claim adjustment expense | $ | 21,729 | $ | 21,984 | $ | 22,270 | $ | 21,720 | ||||||||
Future policy benefits | 11,537 | 10,597 | 12,596 | 12,311 | ||||||||||||
Unearned premiums | 4,648 | 4,183 | 4,996 | 4,583 | ||||||||||||
Total insurance reserves | 37,914 | 36,764 | 39,862 | 38,614 | ||||||||||||
Payable to brokers | 576 | 42 | 985 | 108 | ||||||||||||
Short term debt | 87 | 17 | 47 | 77 | ||||||||||||
Long term debt | 11,456 | 11,359 | 9,958 | 11,456 | ||||||||||||
Deferred income taxes | 1,227 | 841 | 875 | 1,168 | ||||||||||||
Deferred non-insurance warranty revenue | 3,595 | 3,402 | 3,852 | 3,779 | ||||||||||||
Other liabilities | 5,028 | 4,505 | 4,447 | 5,111 | ||||||||||||
Total liabilities | 59,883 | 56,930 | 60,026 | 60,313 | ||||||||||||
Commitments and contingent liabilities | ||||||||||||||||
Preferred stock, $ 0.10 par value: | ||||||||||||||||
Preferred stock, $0.10 par value: | ||||||||||||||||
Authorized – 100,000,000 shares | ||||||||||||||||
Common stock, $ 0.01 par value: | ||||||||||||||||
Common stock, $0.01 par value: | ||||||||||||||||
Authorized – 1,800,000,000 shares | ||||||||||||||||
Issued – 312,528,502 and312,169,189 shares | 3 | 3 | ||||||||||||||
Issued – 291,393,899 and 291,210,222 shares | 3 | 3 | ||||||||||||||
Additional paid-in capital | 3,612 | 3,627 | 3,371 | 3,374 | ||||||||||||
Retained earnings | 16,374 | 15,773 | 14,316 | 15,823 | ||||||||||||
Accumulated other comprehensive income (loss) | 3 | (880 | ) | 5 | (68 | ) | ||||||||||
19,992 | 18,523 | 17,695 | 19,132 | |||||||||||||
Less treasury stock, at cost ( 9,930,431 and100,000 shares) | (478 | ) | (5 | ) | ||||||||||||
Less treasury stock, at cost (10,949,702 and 240,000 shares) | (491 | ) | (13 | ) | ||||||||||||
Total shareholders’ equity | 19,514 | 18,518 | 17,204 | 19,119 | ||||||||||||
Noncontrolling interests | 2,880 | 2,868 | 1,209 | 2,811 | ||||||||||||
Total equity | 22,394 | 21,386 | 18,413 | 21,930 | ||||||||||||
Total liabilities and equity | $ | 82,277 | $ | 78,316 | $ | 78,439 | $ | 82,243 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(In millions, except per share data) | ||||||||||||||||
Revenues: | ||||||||||||||||
Insurance premiums | $ | 1,850 | $ | 1,824 | $ | 3,719 | $ | 3,627 | ||||||||
Net investment income | 644 | 551 | 807 | 1,208 | ||||||||||||
Investment gains (losses) (Note 2) | (1,142 | ) | 2 | (1,358 | ) | 33 | ||||||||||
Non-insurance warranty revenue | 308 | 285 | 609 | 566 | ||||||||||||
Operating revenues and other | 650 | 961 | 1,632 | 1,946 | ||||||||||||
Total | 2,310 | 3,623 | 5,409 | 7,380 | ||||||||||||
Expenses: | ||||||||||||||||
Insurance claims and policyholders’ benefits | 1,642 | 1,352 | 3,067 | 2,709 | ||||||||||||
Amortization of deferred acquisition costs | 342 | 338 | 686 | 680 | ||||||||||||
Non-insurance warranty expense | 285 | 263 | 566 | 523 | ||||||||||||
Operating expenses and other | 992 | 1,231 | 3,018 | 2,380 | ||||||||||||
Interest | 123 | 164 | 267 | 305 | ||||||||||||
Total | 3,384 | 3,348 | 7,604 | 6,597 | ||||||||||||
Income (loss) before income tax | (1,074 | ) | 275 | (2,195 | ) | 783 | ||||||||||
Income tax (expense) benefit | 228 | (50 | ) | 305 | (162 | ) | ||||||||||
Net income (loss) | (846 | ) | 225 | (1,890 | ) | 621 | ||||||||||
Amounts attributable to noncontrolling interests | 11 | 24 | 423 | 22 | ||||||||||||
Net income (loss) attributable to Loews Corporation | $ | (835 | ) | $ | 249 | $ | (1,467 | ) | $ | 643 | ||||||
Basic net income (loss) per share | $ | (2.96 | ) | $ | 0.82 | $ | (5.16 | ) | $ | 2.10 | ||||||
Diluted net income (loss) per share | $ | (2.96 | ) | $ | 0.82 | $ | (5.16 | ) | $ | 2.09 | ||||||
Weighted average shares outstanding: | ||||||||||||||||
Shares of common stock | 281.48 | 303.84 | 284.26 | 306.82 | ||||||||||||
Dilutive potential shares of common stock | 0.70 | 0.62 | ||||||||||||||
Total weighted average shares outstanding assuming dilution | 281.48 | 304.54 | 284.26 | 307.44 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(In millions, except per share data) | ||||||||||||||||
Revenues: | ||||||||||||||||
Insurance premiums | $ | 1,824 | $ | 1,815 | $ | 3,627 | $ | 3,600 | ||||||||
Net investment income | 551 | 551 | 1,208 | 1,057 | ||||||||||||
Investment gains (losses): | ||||||||||||||||
Other-than-temporary impairment losses | (6 | ) | (20 | ) | (6 | ) | ||||||||||
Other net investment gains (losses) | 8 | (3 | ) | 53 | 12 | |||||||||||
Total investment gains (losses) | 2 | (3 | ) | 33 | 6 | |||||||||||
Non-insurance warranty revenue | 285 | 248 | 566 | 486 | ||||||||||||
Operating revenues and other | 961 | 979 | 1,946 | 2,022 | ||||||||||||
Total | 3,623 | 3,590 | 7,380 | 7,171 | ||||||||||||
Expenses: | ||||||||||||||||
Insurance claims and policyholders’ benefits | 1,352 | 1,327 | 2,709 | 2,666 | ||||||||||||
Amortization of deferred acquisition costs | 338 | 359 | 680 | 655 | ||||||||||||
Non-insurance warranty expense | 263 | 225 | 523 | 441 | ||||||||||||
Operating expenses and other | 1,231 | 1,229 | 2,380 | 2,413 | ||||||||||||
Interest | 164 | 143 | 305 | 284 | ||||||||||||
Total | 3,348 | 3,283 | 6,597 | 6,459 | ||||||||||||
Income before income tax | 275 | 307 | 783 | 712 | ||||||||||||
Income tax expense | (50 | ) | (59 | ) | (162 | ) | (84 | ) | ||||||||
Net income | 225 | 248 | 621 | 628 | ||||||||||||
Amounts attributable to noncontrolling interests | 24 | (18 | ) | 22 | (105 | ) | ||||||||||
Net income attributable to Loews Corporation | $ | 249 | $ | 230 | $ | 643 | $ | 523 | ||||||||
Basic net income per share | $ | 0.82 | $ | 0.72 | $ | 2.10 | $ | 1.62 | ||||||||
Diluted net income per share | $ | 0.82 | $ | 0.72 | $ | 2.09 | $ | 1.61 | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Shares of common stock | 303.84 | 318.87 | 306.82 | 323.30 | ||||||||||||
Dilutive potential shares of common stock | 0.70 | 0.91 | 0.62 | 0.93 | ||||||||||||
Total weighted average shares outstanding assuming dilution | 304.54 | 319.78 | 307.44 | 324.23 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(In millions) | ||||||||||||||||
Net income (loss) | $ | (846 | ) | $ | 225 | $ | (1,890 | ) | $ | 621 | ||||||
Other comprehensive income (loss), after tax | ||||||||||||||||
Changes in: | ||||||||||||||||
Net unrealized gains (losses) on investments with an allowance for credit losses | 2 | (9 | ) | |||||||||||||
Net unrealized gains on other investments | 1,191 | 436 | 147 | 966 | ||||||||||||
Total unrealized gains on investments | 1,193 | 436 | 138 | 966 | ||||||||||||
Unrealized losses on cash flow hedges | (6 | ) | (19 | ) | (12 | ) | ||||||||||
Pension and postretirement benefits | 6 | 7 | 20 | 15 | ||||||||||||
Foreign currency translation | 29 | 3 | (55 | ) | 20 | |||||||||||
Other comprehensive income | 1,228 | 440 | 84 | 989 | ||||||||||||
Comprehensive income (loss) | 382 | 665 | (1,806 | ) | 1,610 | |||||||||||
Amounts attributable to noncontrolling interests | (119 | ) | (23 | ) | 412 | (84 | ) | |||||||||
Total comprehensive income (loss) attributable to Loews Corporation | $ | 263 | $ | 642 | $ | (1,394 | ) | $ | 1,526 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(In millions) | ||||||||||||||||
Net income | $ | 225 | $ | 248 | $ | 621 | $ | 628 | ||||||||
Other comprehensive income (loss), after tax | ||||||||||||||||
Changes in: | ||||||||||||||||
Net unrealized gains (losses) on investments with other-than-temporary impairments | (1 | ) | 4 | (10 | ) | |||||||||||
Net other unrealized gains (losses) on investments | 436 | (159 | ) | 962 | (588 | ) | ||||||||||
Total unrealized gains (losses) on investments | 436 | (160 | ) | 966 | (598 | ) | ||||||||||
Unrealized gains (losses) on cash flow hedges | (6 | ) | 4 | (12 | ) | 14 | ||||||||||
Pension liability | 7 | 9 | 15 | 19 | ||||||||||||
Foreign currency translation | 3 | (52 | ) | 20 | (41 | ) | ||||||||||
Other comprehensive income (loss) | 440 | (199 | ) | 989 | (606 | ) | ||||||||||
Comprehensive income | 665 | 49 | 1,610 | 22 | ||||||||||||
Amounts attributable to noncontrolling interests | (23 | ) | 2 | (84 | ) | (41 | ) | |||||||||
Total comprehensive income (loss) attributable to Loews Corporation | $ | 642 | $ | 51 | $ | 1,526 | $ | (19 | ) |
Loews Corporation Shareholders | ||||||||||||||||||||||||||||
Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Common Stock Held in Treasury | Noncontrolling Interests | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Balance, April 1, 2019 | $ | 21,902 | $ | 3 | $ | 3,607 | $ | 16,144 | $ | (390 | ) | $ | (327 | ) | $ | 2,865 | ||||||||||||
Net income | 225 | 249 | (24 | ) | ||||||||||||||||||||||||
Other comprehensive income | 440 | 393 | 47 | |||||||||||||||||||||||||
Dividends paid ($0.0625 per share) | (29 | ) | (19 | ) | (10 | ) | ||||||||||||||||||||||
Purchases of Loews Corporation treasury stock | (151 | ) | (151 | ) | ||||||||||||||||||||||||
Purchases of subsidiary stock from noncontrolling interests | (2 | ) | (2 | ) | ||||||||||||||||||||||||
Stock-based compensation | 7 | 6 | 1 | |||||||||||||||||||||||||
Other | 2 | (1 | ) | 3 | ||||||||||||||||||||||||
Balance, June 30, 2019 | $ | 22,394 | $ | 3 | $ | 3,612 | $ | 16,374 | $ | 3 | $ | (478 | ) | $ | 2,880 | |||||||||||||
Balance, April 1, 2020 | $ | 19,178 | $ | 3 | $ | 3,347 | $ | 15,167 | $ | (1,093 | ) | $ | (458 | ) | $ | 2,212 | ||||||||||||
Net loss | (846 | ) | (835 | ) | (11 | ) | ||||||||||||||||||||||
Other comprehensive income | 1,228 | 1,098 | 130 | |||||||||||||||||||||||||
Dividends paid ($0.0625 per share) | (27 | ) | (18 | ) | (9 | ) | ||||||||||||||||||||||
Deconsolidation of Diamond Offshore | (1,087 | ) | (1,087 | ) | ||||||||||||||||||||||||
Purchases of Loews Corporation treasury stock | (33 | ) | (33 | ) | ||||||||||||||||||||||||
Purchases of subsidiary stock from noncontrolling interests | (19 | ) | 5 | (24 | ) | |||||||||||||||||||||||
Stock-based compensation | 13 | 13 | ||||||||||||||||||||||||||
Other | 6 | 6 | 2 | (2 | ) | |||||||||||||||||||||||
Balance, June 30, 2020 | $ | 18,413 | $ | 3 | $ | 3,371 | $ | 14,316 | $ | 5 | $ | (491 | ) | $ | 1,209 |
Loews Corporation Shareholders | |||||||||||||||||||||||||||||
Accumulated | Common | ||||||||||||||||||||||||||||
Additional | Other | Stock | |||||||||||||||||||||||||||
Common | Paid-in | Retained | Comprehensive | Held in | Noncontrolling | ||||||||||||||||||||||||
Total | Stock | Capital | Earnings | Income (Loss) | Treasury | Interests | |||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Balance, April 1, 2018 | $ | 23,848 | $ | 3 | $ | 3,142 | $ | 16,321 | $ | (417 | ) | $ | (517 | ) | $ | 5,316 | |||||||||||||
Net income | 248 | 230 | 18 | ||||||||||||||||||||||||||
Other comprehensive loss | (199 | ) | (179 | ) | (20 | ) | |||||||||||||||||||||||
Dividends paid ($0.0625 per share) | (42 | ) | (20 | ) | (22 | ) | |||||||||||||||||||||||
Purchase of Boardwalk Pipeline common units | (1,715 | ) | 661 | (29 | ) | (2,347 | ) | ||||||||||||||||||||||
Purchases of Loews treasury stock | (291 | ) | (291 | ) | |||||||||||||||||||||||||
Stock-based compensation | 8 | 8 | |||||||||||||||||||||||||||
Other | 1 | (2 | ) | 1 | 2 | ||||||||||||||||||||||||
Balance, June 30, 2018 | $ | 21,858 | $ | 3 | $ | 3,809 | $ | 16,532 | $ | (625 | ) | $ | (808 | ) | $ | 2,947 | |||||||||||||
Balance, April 1, 2019 | $ | 21,902 | $ | 3 | $ | 3,607 | $ | 16,144 | $ | (390 | ) | $ | (327 | ) | $ | 2,865 | |||||||||||||
Net income | 225 | 249 | (24 | ) | |||||||||||||||||||||||||
Other comprehensive income | 440 | 393 | 47 | ||||||||||||||||||||||||||
Dividends paid ($0.0625 per share) | (29 | ) | (19 | ) | (10 | ) | |||||||||||||||||||||||
Purchases of Loews treasury stock | (151 | ) | (151 | ) | |||||||||||||||||||||||||
Purchases of subsidiary stock from noncontrolling interests | (2 | ) | (2 | ) | |||||||||||||||||||||||||
Stock-based compensation | 7 | 6 | 1 | ||||||||||||||||||||||||||
Other | 2 | (1 | ) | 3 | |||||||||||||||||||||||||
Balance, June 30, 2019 | $ | 22,394 | $ | 3 | $ | 3,612 | $ | 16,374 | $ | 3 | $ | (478 | ) | $ | 2,880 |
Loews Corporation Shareholders | ||||||||||||||||||||||||||||
Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Common Stock Held in Treasury | Noncontrolling Interests | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Balance, January 1, 2019 | $ | 21,386 | $ | 3 | $ | 3,627 | $ | 15,773 | $ | (880 | ) | $ | (5 | ) | $ | 2,868 | ||||||||||||
Net income | 621 | 643 | (22 | ) | ||||||||||||||||||||||||
Other comprehensive income | 989 | 883 | 106 | |||||||||||||||||||||||||
Dividends paid ($0.125 per share) | (116 | ) | (38 | ) | (78 | ) | ||||||||||||||||||||||
Purchases of Loews Corporation treasury stock | (473 | ) | (473 | ) | ||||||||||||||||||||||||
Purchases of subsidiary stock from noncontrolling interests | (16 | ) | (16 | ) | ||||||||||||||||||||||||
Stock-based compensation | 8 | (13 | ) | 21 | ||||||||||||||||||||||||
Other | (5 | ) | (2 | ) | (4 | ) | 1 | |||||||||||||||||||||
Balance, June 30, 2019 | $ | 22,394 | $ | 3 | $ | 3,612 | $ | 16,374 | $ | 3 | $ | (478 | ) | $ | 2,880 | |||||||||||||
Balance, December 31, 2019, as reported | $ | 21,930 | $ | 3 | $ | 3,374 | $ | 15,823 | $ | (68 | ) | $ | (13 | ) | $ | 2,811 | ||||||||||||
Cumulative effect adjustment from change in accounting standards (Note 1) | (5 | ) | (5 | ) | ||||||||||||||||||||||||
Balance, January 1, 2020, as adjusted | 21,925 | 3 | 3,374 | 15,818 | (68 | ) | (13 | ) | 2,811 | |||||||||||||||||||
Net loss | (1,890 | ) | (1,467 | ) | (423 | ) | ||||||||||||||||||||||
Other comprehensive income | 84 | 73 | 11 | |||||||||||||||||||||||||
Dividends paid ($0.125 per share) | (114 | ) | (36 | ) | (78 | ) | ||||||||||||||||||||||
Deconsolidation of Diamond Offshore | (1,087 | ) | (1,087 | ) | ||||||||||||||||||||||||
Purchases of Loews Corporation treasury stock | (478 | ) | (478 | ) | ||||||||||||||||||||||||
Purchases of subsidiary stock from noncontrolling interests | (37 | ) | 5 | (42 | ) | |||||||||||||||||||||||
Stock-based compensation | 9 | (9 | ) | 18 | ||||||||||||||||||||||||
Other | 1 | 1 | 1 | (1 | ) | |||||||||||||||||||||||
Balance, June 30, 2020 | $ | 18,413 | $ | 3 | $ | 3,371 | $ | 14,316 | $ | 5 | $ | (491 | ) | $ | 1,209 |
Loews Corporation Shareholders | |||||||||||||||||||||||||||||
Accumulated | Common | ||||||||||||||||||||||||||||
Additional | Other | Stock | |||||||||||||||||||||||||||
Common | Paid-in | Retained | Comprehensive | Held in | Noncontrolling | ||||||||||||||||||||||||
Total | Stock | Capital | Earnings | Income (Loss) | Treasury | Interests | |||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Balance, January 1, 2018, as reported | $ | 24,566 | $ | 3 | $ | 3,151 | $ | 16,096 | $ | (26 | ) | $ | (20 | ) | $ | 5,362 | |||||||||||||
Cumulative effect adjustments from changes in accounting standards | (91 | ) | (43 | ) | (28 | ) | (20 | ) | |||||||||||||||||||||
Balance, January 1, 2018, as adjusted | 24,475 | 3 | 3,151 | 16,053 | (54 | ) | (20 | ) | 5,342 | ||||||||||||||||||||
Net income | 628 | 523 | 105 | ||||||||||||||||||||||||||
Other comprehensive loss | (606 | ) | (542 | ) | (64 | ) | |||||||||||||||||||||||
Dividends paid ($0.125 per share) | (140 | ) | (40 | ) | (100 | ) | |||||||||||||||||||||||
Purchase of Boardwalk Pipeline common units | (1,715 | ) | 661 | (29 | ) | (2,347 | ) | ||||||||||||||||||||||
Purchases of Loews treasury stock | (788 | ) | (788 | ) | |||||||||||||||||||||||||
Stock-based compensation | 8 | 1 | 7 | ||||||||||||||||||||||||||
Other | (4 | ) | (4 | ) | (4 | ) | 4 | ||||||||||||||||||||||
Balance, June 30, 2018 | $ | 21,858 | $ | 3 | $ | 3,809 | $ | 16,532 | $ | (625 | ) | $ | (808 | ) | $ | 2,947 | |||||||||||||
Balance, January 1, 2019 | $ | 21,386 | $ | 3 | $ | 3,627 | $ | 15,773 | $ | (880 | ) | $ | (5 | ) | $ | 2,868 | |||||||||||||
Net income | 621 | 643 | (22 | ) | |||||||||||||||||||||||||
Other comprehensive income | 989 | 883 | 106 | ||||||||||||||||||||||||||
Dividends paid ($0.125 per share) | (116 | ) | (38 | ) | (78 | ) | |||||||||||||||||||||||
Purchases of Loews treasury stock | (473 | ) | (473 | ) | |||||||||||||||||||||||||
Purchases of subsidiary stock from noncontrolling interests | (16 | ) | (16 | ) | |||||||||||||||||||||||||
Stock-based compensation | 8 | (13 | ) | 21 | |||||||||||||||||||||||||
Other | (5 | ) | (2 | ) | (4 | ) | 1 | ||||||||||||||||||||||
Balance, June 30, 2019 | $ | 22,394 | $ | 3 | $ | 3,612 | $ | 16,374 | $ | 3 | $ | (478 | ) | $ | 2,880 |
Six Months Ended June 30, | 2020 | 2019 | ||||||
(In millions) | ||||||||
Operating Activities: | ||||||||
Net income (loss) | $ | (1,890 | ) | $ | 621 | |||
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities, net | 2,430 | 604 | ||||||
Changes in operating assets and liabilities, net: | ||||||||
Receivables | (574 | ) | (79 | ) | ||||
Deferred acquisition costs | (41 | ) | (47 | ) | ||||
Insurance reserves | 1,181 | 203 | ||||||
Other assets | (280 | ) | (296 | ) | ||||
Other liabilities | (46 | ) | 73 | |||||
Trading securities | (340 | ) | (605 | ) | ||||
Net cash flow provided by operating activities | 440 | 474 | ||||||
Investing Activities: | ||||||||
Purchases of fixed maturities | (5,356 | ) | (4,896 | ) | ||||
Proceeds from sales of fixed maturities | 3,773 | 3,858 | ||||||
Proceeds from maturities of fixed maturities | 1,622 | 1,374 | ||||||
Purchases of limited partnership investments | (90 | ) | (139 | ) | ||||
Proceeds from sales of limited partnership investments | 259 | 559 | ||||||
Purchases of property, plant and equipment | (440 | ) | (505 | ) | ||||
Acquisitions | (256 | ) | ||||||
Dispositions | 11 | 136 | ||||||
Deconsolidation of Diamond Offshore | (483 | ) | ||||||
Change in short term investments | 526 | 6 | ||||||
Other, net | (147 | ) | (93 | ) | ||||
Net cash flow (used) provided by investing activities | (325 | ) | 44 | |||||
Financing Activities: | ||||||||
Dividends paid | (36 | ) | (38 | ) | ||||
Dividends paid to noncontrolling interests | (78 | ) | (78 | ) | ||||
Purchases of Loews Corporation treasury stock | (491 | ) | (478 | ) | ||||
Purchases of subsidiary stock from noncontrolling interests | (37 | ) | (16 | ) | ||||
Principal payments on debt | (465 | ) | (1,394 | ) | ||||
Issuance of debt | 1,342 | 1,534 | ||||||
Other, net | (13 | ) | (15 | ) | ||||
Net cash flow provided (used) by financing activities | 222 | (485 | ) | |||||
Effect of foreign exchange rate on cash | (5 | ) | 2 | |||||
Net change in cash | 332 | 35 | ||||||
Cash, beginning of period | 336 | 405 | ||||||
Cash, end of period | $ | 668 | $ | 440 |
Six Months Ended June 30 | 2019 | 2018 | ||||||
(In millions) | ||||||||
Operating Activities: | ||||||||
Net income | $ | 621 | $ | 628 | ||||
Adjustments to reconcile net income to net cash provided (used) by operating activities, net | 604 | 494 | ||||||
Changes in operating assets and liabilities, net: | ||||||||
Receivables | (79 | ) | (507 | ) | ||||
Deferred acquisition costs | (47 | ) | (43 | ) | ||||
Insurance reserves | 203 | 563 | ||||||
Other assets | (296 | ) | (151 | ) | ||||
Other liabilities | 73 | (115 | ) | |||||
Trading securities | (605 | ) | 1,282 | |||||
Net cash flow provided by operating activities | 474 | 2,151 | ||||||
Investing Activities: | ||||||||
Purchases of fixed maturities | (4,896 | ) | (5,608 | ) | ||||
Proceeds from sales of fixed maturities | 3,858 | 4,781 | ||||||
Proceeds from maturities of fixed maturities | 1,374 | 1,306 | ||||||
Purchases of limited partnership investments | (139 | ) | (73 | ) | ||||
Proceeds from sales of limited partnership investments | 559 | 94 | ||||||
Purchases of property, plant and equipment | (505 | ) | (480 | ) | ||||
Acquisitions | (256 | ) | (10 | ) | ||||
Dispositions | 136 | 2 | ||||||
Change in short term investments | 6 | (1,104 | ) | |||||
Other, net | (93 | ) | (145 | ) | ||||
Net cash flow provided by investing activities | 44 | (1,237 | ) | |||||
Financing Activities: | ||||||||
Dividends paid | (38 | ) | (40 | ) | ||||
Dividends paid to noncontrolling interests | (78 | ) | (100 | ) | ||||
Purchases of Loews treasury stock | (478 | ) | (799 | ) | ||||
Purchases of subsidiary stock from noncontrolling interests | (16 | ) | ||||||
Principal payments on debt | (1,394 | ) | (605 | ) | ||||
Issuance of debt | 1,534 | 533 | ||||||
Other, net | (15 | ) | 83 | |||||
Net cash flow used by financing activities | (485 | ) | (928 | ) | ||||
Effect of foreign exchange rate on cash | 2 | (5 | ) | |||||
Net change in cash | 35 | (19 | ) | |||||
Cash, beginning of period | 405 | 472 | ||||||
Cash, end of period | $ | 440 | $ | 453 |
Three Months Ended June 30, | Six Months Ended June 30 | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(In millions) | ||||||||||||||||
Fixed maturity securities | $ | 430 | $ | 455 | $ | 868 | $ | 910 | ||||||||
Limited partnership investments | 57 | 43 | (45 | ) | 124 | |||||||||||
Short term investments | 2 | 14 | 9 | 29 | ||||||||||||
Equity securities | 50 | 16 | 6 | 46 | ||||||||||||
Income (loss) from trading portfolio (a) | 107 | 29 | (22 | ) | 110 | |||||||||||
Other | 16 | 12 | 30 | 26 | ||||||||||||
Total investment income | 662 | 569 | 846 | 1,245 | ||||||||||||
Investment expenses | (18 | ) | (18 | ) | (39 | ) | (37 | ) | ||||||||
Net investment income | $ | 644 | $ | 551 | $ | 807 | $ | 1,208 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(In millions) | ||||||||||||||||
Fixed maturity securities | $ | 455 | $ | 444 | $ | 910 | $ | 890 | ||||||||
Limited partnership investments | 43 | 60 | 124 | 108 | ||||||||||||
Short term investments | 14 | 11 | 29 | 20 | ||||||||||||
Equity securities | 16 | 12 | 46 | 22 | ||||||||||||
Income from trading portfolio (a) | 29 | 23 | 110 | 20 | ||||||||||||
Other | 12 | 17 | 26 | 28 | ||||||||||||
Total investment income | 569 | 567 | 1,245 | 1,088 | ||||||||||||
Investment expenses | (18 | ) | (16 | ) | (37 | ) | (31 | ) | ||||||||
Net investment income | $ | 551 | $ | 551 | $ | 1,208 | $ | 1,057 |
(a) | Net unrealized gains (losses) related to changes in fair value on securities still held were $ |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended June 30, | Six Months Ended June 30 | |||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Fixed maturity securities | $ | (3 | ) | $ | 4 | $ | (9 | ) | $ | 22 | $ | 17 | $ | (3 | ) | $ | (58 | ) | $ | (9 | ) | |||||||||||
Equity securities | 11 | (10 | ) | 53 | (25 | ) | 63 | 11 | (70 | ) | 53 | |||||||||||||||||||||
Derivative instruments | (6 | ) | 4 | (11 | ) | 9 | (10 | ) | (6 | ) | (5 | ) | (11 | ) | ||||||||||||||||||
Short term investments and other | (1 | ) | (1 | ) | (14 | ) | ||||||||||||||||||||||||||
Deconsolidation of Diamond Offshore (see Note 2) | (1,211 | ) | (1,211 | ) | ||||||||||||||||||||||||||||
Investment gains (losses) (a) | $ | 2 | $ | (3 | ) | $ | 33 | $ | 6 | $ | (1,142 | ) | $ | 2 | $ | (1,358 | ) | $ | 33 |
(a) | Gross investment gains on available-for-sale securities were $available-for-sale securities were $2019.During the three and six months ended June 30, 2020, $63of investment gains and $70 of investment losses were recognized due to the change in fair value of non-redeemable preferred stock still held as of June 30, 2020. During the three and six months ended June 30, 2019, $11 and $53 of |
Three months ended June 30, 2020 | Corporate and Other Bonds | Asset- backed | Total | |||||||||
(In millions) | ||||||||||||
Allowance for credit losses: | ||||||||||||
Balance as of April 1, 2020 | $ | 49 | $ | - | $ | 49 | ||||||
Additions to the allowance for credit losses: | ||||||||||||
For securities for which credit losses were not previously recorded | 10 | 12 | 22 | |||||||||
For available-for-sale securities accounted for as PCD assets | 1 | 1 | ||||||||||
Reductions to the allowance for credit losses: | ||||||||||||
Securities sold during the period (realized) | 1 | 1 | ||||||||||
Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period | (20 | ) | (20 | ) | ||||||||
Total allowance for credit losses | $ | 39 | $ | 12 | $ | 51 |
Six months ended June 30, 2020 | ||||||||||||
Allowance for credit losses: | ||||||||||||
Balance as of December 31, 2019 | $ | - | $ | - | $ | - | ||||||
Additions to the allowance for credit losses: | ||||||||||||
Impact of adopting ASC 326 | 6 | 6 | ||||||||||
For securities for which credit losses were not previously recorded | 58 | 12 | 70 | |||||||||
For available-for-sale securities accounted for as PCD assets | 2 | 2 | ||||||||||
Reductions to the allowance for credit losses: | ||||||||||||
Securities sold during the period (realized) | 6 | 6 | ||||||||||
Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis | 1 | 1 | ||||||||||
Additional increases or (decrease) to the allowance for credit losses on securities that had an allowance recorded in a previous period | (20 | ) | (20 | ) | ||||||||
Total allowance for credit losses | $ | 39 | $ | 12 | $ | 51 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(In millions) | ||||||||||||||||
Fixed maturity securities available-for-sale: | ||||||||||||||||
Corporate and other bonds | $ | (1 | ) | $ | 6 | $ | 90 | $ | 12 | |||||||
Asset-backed | 12 | 13 | 8 | |||||||||||||
Impairment losses recognized in earnings | $ | 11 | $ | 6 | $ | 103 | $ | 20 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(In millions) | ||||||||||||||||
Fixed maturity securities available-for-sale: | ||||||||||||||||
Corporate and other bonds | $ | 6 | $ | 12 | $ | 5 | ||||||||||
Asset-backed | 8 | 1 | ||||||||||||||
Net OTTI losses recognized in earnings | $ | 6 | $ | - | $ | 20 | $ | 6 |
June 30, 2019 | Cost or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | Unrealized OTTI Losses (Gains) | |||||||||||||||||||||||||||||||||||
June 30, 2020 | Cost or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Allowance for Credit Losses (a) | Estimated Fair Value | |||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||
Corporate and other bonds | $ | 19,654 | $ | 1,880 | $ | 44 | $ | 21,490 | $ | 20,305 | $ | 2,680 | $ | 143 | $ | 39 | $ | 22,803 | ||||||||||||||||||||||
States, municipalities and political subdivisions | 9,196 | 1,507 | 10,703 | 9,426 | 1,702 | 1 | 11,127 | |||||||||||||||||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed | 4,668 | 131 | 2 | 4,797 | $ | (24 | ) | 3,617 | 169 | 2 | 3,784 | |||||||||||||||||||||||||||||
Commercial mortgage-backed | 2,032 | 93 | 4 | 2,121 | 2,151 | 70 | 93 | 12 | 2,116 | |||||||||||||||||||||||||||||||
Other asset-backed | 1,865 | 40 | 7 | 1,898 | (2 | ) | 1,940 | 52 | 33 | 1,959 | ||||||||||||||||||||||||||||||
Total asset-backed | 8,565 | 264 | 13 | 8,816 | (26 | ) | 7,708 | 291 | 128 | 12 | 7,859 | |||||||||||||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 118 | 5 | 123 | 491 | 7 | 498 | ||||||||||||||||||||||||||||||||||
Foreign government | 480 | 17 | 497 | 457 | 26 | 483 | ||||||||||||||||||||||||||||||||||
Redeemable preferred stock | 10 | 10 | ||||||||||||||||||||||||||||||||||||||
Fixed maturities available-for-sale | 38,023 | 3,673 | 57 | 41,639 | (26 | ) | 38,387 | 4,706 | 272 | 51 | 42,770 | |||||||||||||||||||||||||||||
Fixed maturities trading | 22 | 2 | 24 | 27 | 2 | 29 | ||||||||||||||||||||||||||||||||||
Total fixed maturity securities | $ | 38,045 | $ | 3,675 | $ | 57 | $ | 41,663 | $ | (26 | ) | $ | 38,414 | $ | 4,708 | $ | 272 | $ | 51 | $ | 42,799 |
December 31, 2019 | Cost or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | Unrealized OTTI Losses (Gains) (a) | |||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||
Corporate and other bonds | $ | 19,789 | $ | 2,292 | $ | 32 | $ | 22,049 | ||||||||||||
States, municipalities and political subdivisions | 9,093 | 1,559 | 10,652 | |||||||||||||||||
Asset-backed: | ||||||||||||||||||||
Residential mortgage-backed | 4,387 | 133 | 1 | 4,519 | $ | (17 | ) | |||||||||||||
Commercial mortgage-backed | 2,265 | 86 | 5 | 2,346 | 1 | |||||||||||||||
Other asset-backed | 1,925 | 41 | 4 | 1,962 | (3 | ) | ||||||||||||||
Total asset-backed | 8,577 | 260 | 10 | 8,827 | (19 | ) | ||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 146 | 1 | 2 | 145 | ||||||||||||||||
Foreign government | 491 | 14 | 1 | 504 | ||||||||||||||||
Redeemable preferred stock | 10 | 10 | ||||||||||||||||||
Fixed maturities available-for-sale | 38,106 | 4,126 | 45 | 42,187 | (19 | ) | ||||||||||||||
Fixed maturities trading | 51 | 2 | 53 | |||||||||||||||||
Total fixed maturities | $ | 38,157 | $ | 4,128 | $ | 45 | $ | 42,240 | $ | (19 | ) |
(a) | On January 1, 2020, the Company adopted ASU 2016-13; see Note 1. The Unrealized OTTI Losses (Gains) column that tracked subsequent valuation changes on securities for which a credit loss had previously been recorded has been replaced with the Allowance for Credit Losses column. Prior period amounts were not adjusted for the adoption of this standard. |
December 31, 2018 | Cost or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | Unrealized OTTI Losses (Gains) | |||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||
Corporate and other bonds | $ | 18,764 | $ | 791 | $ | 395 | $ | 19,160 | ||||||||||||
States, municipalities and political subdivisions | 9,681 | 1,076 | 9 | 10,748 | ||||||||||||||||
Asset-backed: | ||||||||||||||||||||
Residential mortgage-backed | 4,815 | 68 | 57 | 4,826 | $ | (20 | ) | |||||||||||||
Commercial mortgage-backed | 2,200 | 28 | 32 | 2,196 | ||||||||||||||||
Other asset-backed | 1,975 | 11 | 24 | 1,962 | ||||||||||||||||
Total asset-backed | 8,990 | 107 | 113 | 8,984 | (20 | ) | ||||||||||||||
U.S. Treasury and obligations of government- sponsored enterprises | 156 | 3 | 159 | |||||||||||||||||
Foreign government | 480 | 5 | 4 | 481 | ||||||||||||||||
Redeemable preferred stock | 10 | 10 | ||||||||||||||||||
Fixed maturities available-for-sale | 38,081 | 1,982 | 521 | 39,542 | (20 | ) | ||||||||||||||
Fixed maturities trading | 153 | 4 | 157 | |||||||||||||||||
Total fixed maturities | $ | 38,234 | $ | 1,986 | $ | 521 | $ | 39,699 | $ | (20 | ) |
Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||
June 30, 2019 | Estimated Fair Value | Gross Unrealized Losses | Estimated Fair Value | Gross Unrealized Losses | Estimated Fair Value | Gross Unrealized Losses | ||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||
Corporate and other bonds | $ | 776 | $ | 22 | $ | 498 | $ | 22 | $ | 1,274 | $ | 44 | ||||||||||||
States, municipalities and political subdivisions | 19 | 2 | 21 | |||||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||
Residential mortgage-backed | 163 | 134 | 2 | 297 | 2 | |||||||||||||||||||
Commercial mortgage-backed | 58 | 2 | 69 | 2 | 127 | 4 | ||||||||||||||||||
Other asset-backed | 386 | 5 | 77 | 2 | 463 | 7 | ||||||||||||||||||
Total asset-backed | 607 | 7 | 280 | 6 | 887 | 13 | ||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 4 | 4 | ||||||||||||||||||||||
Foreign government | 3 | 11 | 14 | |||||||||||||||||||||
Total fixed maturity securities | $ | 1,405 | $ | 29 | $ | 795 | $ | 28 | $ | 2,200 | $ | 57 | ||||||||||||
December 31, 2018 | ||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||
Corporate and other bonds | $ | 8,543 | $ | 340 | $ | 825 | $ | 55 | $ | 9,368 | $ | 395 | ||||||||||||
States, municipalities and political subdivisions | 517 | 8 | 5 | 1 | 522 | 9 | ||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||
Residential mortgage-backed | 1,932 | 23 | 1,119 | 34 | 3,051 | 57 | ||||||||||||||||||
Commercial mortgage-backed | 728 | 10 | 397 | 22 | 1,125 | 32 | ||||||||||||||||||
Other asset-backed | 834 | 21 | 125 | 3 | 959 | 24 | ||||||||||||||||||
Total asset-backed | 3,494 | 54 | 1,641 | 59 | 5,135 | 113 | ||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 21 | 19 | 40 | |||||||||||||||||||||
Foreign government | 114 | 2 | 124 | 2 | 238 | 4 | ||||||||||||||||||
Total fixed maturity securities | $ | 12,689 | $ | 404 | $ | 2,614 | $ | 117 | $ | 15,303 | $ | 521 |
Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||
June 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: | ||||||||||||||||||||||||
Corporate and other bonds | $ | 2,095 | $ | 137 | $ | 56 | $ | 6 | $ | 2,151 | $ | 143 | ||||||||||||
States, municipalities and political subdivisions | 94 | 1 | 94 | 1 | ||||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||
Residential mortgage-backed | 53 | 1 | 21 | 1 | 74 | 2 | ||||||||||||||||||
Commercial mortgage-backed | 971 | 92 | 14 | 1 | 985 | 93 | ||||||||||||||||||
Other asset-backed | 746 | 32 | 14 | 1 | 760 | 33 | ||||||||||||||||||
Total asset-backed | 1,770 | 125 | 49 | 3 | 1,819 | 128 | ||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 4 | 4 | ||||||||||||||||||||||
Foreign government | 4 | 4 | ||||||||||||||||||||||
Total fixed maturity securities | $ | 3,967 | $ | 263 | $ | 105 | $ | 9 | $ | 4,072 | $ | 272 | ||||||||||||
December 31, 2019 | ||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||
Corporate and other bonds | $ | 914 | $ | 21 | $ | 186 | $ | 11 | $ | 1,100 | $ | 32 | ||||||||||||
States, municipalities and political subdivisions | 34 | 34 | ||||||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||
Residential mortgage-backed | 249 | 1 | 30 | 279 | 1 | |||||||||||||||||||
Commercial mortgage-backed | 381 | 3 | 20 | 2 | 401 | 5 | ||||||||||||||||||
Other asset-backed | 449 | 3 | 33 | 1 | 482 | 4 | ||||||||||||||||||
Total asset-backed | 1,079 | 7 | 83 | 3 | 1,162 | 10 | ||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 62 | 2 | 2 | 64 | 2 | |||||||||||||||||||
Foreign government | 59 | 1 | 1 | 60 | 1 | |||||||||||||||||||
Total fixed maturity securities | $ | 2,148 | $ | 31 | $ | 272 | $ | 14 | $ | 2,420 | $ | 45 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(In millions) | ||||||||||||||||
Beginning balance of credit losses on fixed maturity securities | $ | 17 | $ | 25 | $ | 18 | $ | 27 | ||||||||
Reductions for securities sold during the period | (1 | ) | (4 | ) | (2 | ) | (6 | ) | ||||||||
Ending balance of credit losses on fixed maturity securities | $ | 16 | $ | 21 | $ | 16 | $ | 21 |
June 30, 2019 | December 31, 2018 | |||||||||||||||
Cost or Amortized Cost | Estimated Fair Value | Cost or Amortized Cost | Estimated Fair Value | |||||||||||||
(In millions) | ||||||||||||||||
Due in one year or less | $ | 1,018 | $ | 1,032 | $ | 1,350 | $ | 1,359 | ||||||||
Due after one year through five years | 8,097 | 8,476 | 7,979 | 8,139 | ||||||||||||
Due after five years through ten years | 16,403 | 17,297 | 16,859 | 16,870 | ||||||||||||
Due after ten years | 12,505 | 14,834 | 11,893 | 13,174 | ||||||||||||
Total | $ | 38,023 | $ | 41,639 | $ | 38,081 | $ | 39,542 |
June 30, 2020 | December 31, 2019 | |||||||||||||||
Cost or Amortized Cost | Estimated Fair Value | Cost or Amortized Cost | Estimated Fair Value | |||||||||||||
(In millions) | ||||||||||||||||
Due in one year or less | $ | 1,472 | $ | 1,469 | $ | 1,334 | $ | 1,356 | ||||||||
Due after one year through five years | 11,040 | 11,622 | 9,746 | 10,186 | ||||||||||||
Due after five years through ten years | 13,335 | 14,414 | 14,892 | 15,931 | ||||||||||||
Due after ten years | 12,540 | 15,265 | 12,134 | 14,714 | ||||||||||||
Total | $ | 38,387 | $ | 42,770 | $ | 38,106 | $ | 42,187 |
Mortgage Loans Amortized Cost Basis by Origination Year (a) | ||||||||||||||||||||||||||||
As of June 30, 2020 | 2020 | 2019 | 2018 | 2017 | 2016 | Prior | Total | |||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
DSCR ≥1.6x | ||||||||||||||||||||||||||||
LTV less than 55% | $ | 60 | $ | 33 | $ | 19 | $ | 100 | $ | 41 | $ | 129 | $ | 382 | ||||||||||||||
LTV 55% to 65% | 32 | 29 | 41 | 4 | 106 | |||||||||||||||||||||||
LTV greater than 65% | 5 | 5 | ||||||||||||||||||||||||||
DSCR 1.2x - 1.6x | ||||||||||||||||||||||||||||
LTV less than 55% | 32 | 10 | 13 | 16 | 125 | 196 | ||||||||||||||||||||||
LTV 55% to 65% | 83 | 32 | 32 | 147 | ||||||||||||||||||||||||
LTV greater than 65% | 19 | 74 | �� | 93 | ||||||||||||||||||||||||
DSCR ≤1.2x | ||||||||||||||||||||||||||||
LTV less than 55% | 2 | 11 | 9 | 22 | ||||||||||||||||||||||||
LTV 55% to 65% | 14 | 14 | 28 | |||||||||||||||||||||||||
LTV greater than 65% | 22 | 37 | 24 | 83 | ||||||||||||||||||||||||
Total | $ | 79 | $ | 297 | $ | 115 | $ | 223 | $ | 85 | $ | 263 | $ | 1,062 |
(a) | The values in the table above reflect DSCR on a standardized amortization period and LTV based on the most recent appraised values trended forward using changes in a commercial real estate price index. |
June 30, 2019 | December 31, 2018 | June 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||
Contractual/ Notional | Estimated Fair Value | Contractual/ Notional | Estimated Fair Value | Contractual/ Notional | Estimated Fair Value | Contractual/ Notional | Estimated Fair Value | ||||||||||||||||||||||||||||||||||||||
Amount | Asset | (Liability) | Amount | Asset | (Liability) | Amount | Asset | (Liability) | Amount | Asset | (Liability) | ||||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||||||||||||
With hedge designation: | |||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | $ | 540 | $ | (9 | ) | $ | 500 | $ | 11 | $ | 675 | $ | (29 | ) | $ | 715 | $ | (8 | ) | ||||||||||||||||||||||||||
Without hedge designation: | |||||||||||||||||||||||||||||||||||||||||||||
Equity markets: | |||||||||||||||||||||||||||||||||||||||||||||
Options – purchased | 303 | $ | 5 | 213 | 18 | ||||||||||||||||||||||||||||||||||||||||
Equity Options – purchased | 57 | $ | 1 | ||||||||||||||||||||||||||||||||||||||||||
– written | 95 | (3 | ) | 239 | $ | (17 | ) | 100 | (1 | ) | |||||||||||||||||||||||||||||||||||
Futures – short | |||||||||||||||||||||||||||||||||||||||||||||
Commodity futures – long | 11 | 32 | |||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | 80 | (4 | ) | ||||||||||||||||||||||||||||||||||||||||||
Embedded derivative on funds withheld liability | 172 | (8 | ) | 172 | 4 | 197 | (12 | ) | 182 | (7 | ) |
● | Level 1 – Quoted prices for identical instruments in active markets. |
● | Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets. |
● | Level 3 – Valuations derived from valuation techniques in which one or more significant inputs are not observable. |
June 30, 2020 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(In millions) | ||||||||||||||||
Fixed maturity securities: | ||||||||||||||||
Corporate bonds and other | $ | 519 | $ | 22,710 | $ | 555 | $ | 23,784 | ||||||||
States, municipalities and political subdivisions | 11,127 | 11,127 | ||||||||||||||
Asset-backed | 7,637 | 222 | 7,859 | |||||||||||||
Fixed maturities available-for-sale | 519 | 41,474 | 777 | 42,770 | ||||||||||||
Fixed maturities trading | 25 | 4 | 29 | |||||||||||||
Total fixed maturities | $ | 519 | $ | 41,499 | $ | 781 | $ | 42,799 | ||||||||
Equity securities | $ | 642 | $ | 636 | $ | 27 | $ | 1,305 | ||||||||
Short term and other | 4,349 | 60 | 4,409 | |||||||||||||
Payable to brokers | (46 | ) | (33 | ) | (79 | ) | ||||||||||
December 31, 2019 | ||||||||||||||||
Fixed maturity securities: | ||||||||||||||||
Corporate bonds and other | $ | 175 | $ | 22,065 | $ | 468 | $ | 22,708 | ||||||||
States, municipalities and political subdivisions | 10,652 | 10,652 | ||||||||||||||
Asset-backed | 8,662 | 165 | 8,827 | |||||||||||||
Fixed maturities available-for-sale | 175 | 41,379 | 633 | 42,187 | ||||||||||||
Fixed maturities trading | 49 | 4 | 53 | |||||||||||||
Total fixed maturities | $ | 175 | $ | 41,428 | $ | 637 | $ | 42,240 | ||||||||
Equity securities | $ | 629 | $ | 658 | $ | 19 | $ | 1,306 | ||||||||
Short term and other | 3,138 | 1,383 | 4,521 | |||||||||||||
Receivables | 2 | 2 | ||||||||||||||
Payable to brokers | (18 | ) | (10 | ) | (28 | ) |
June 30, 2019 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(In millions) | ||||||||||||||||
Fixed maturity securities: | ||||||||||||||||
Corporate bonds and other | $ | 152 | $ | 21,630 | $ | 338 | $ | 22,120 | ||||||||
States, municipalities and political subdivisions | 10,703 | 10,703 | ||||||||||||||
Asset-backed | 8,623 | 193 | 8,816 | |||||||||||||
Fixed maturities available-for-sale | 152 | 40,956 | 531 | 41,639 | ||||||||||||
Fixed maturities trading | 20 | 4 | 24 | |||||||||||||
Total fixed maturities | $ | 152 | $ | 40,976 | $ | 535 | $ | 41,663 | ||||||||
Equity securities | $ | 715 | $ | 629 | $ | 23 | $ | 1,367 | ||||||||
Short term and other | 3,469 | 1,123 | 4,592 | |||||||||||||
Payable to brokers | (114 | ) | (9 | ) | (123 | ) | ||||||||||
December 31, 2018 | ||||||||||||||||
Fixed maturity securities: | ||||||||||||||||
Corporate bonds and other | $ | 196 | $ | 19,392 | $ | 222 | $ | 19,810 | ||||||||
States, municipalities and political subdivisions | 10,748 | 10,748 | ||||||||||||||
Asset-backed | 8,787 | 197 | 8,984 | |||||||||||||
Fixed maturities available-for-sale | 196 | 38,927 | 419 | 39,542 | ||||||||||||
Fixed maturities trading | 151 | 6 | 157 | |||||||||||||
Total fixed maturities | $ | 196 | $ | 39,078 | $ | 425 | $ | 39,699 | ||||||||
Equity securities | $ | 704 | $ | 570 | $ | 19 | $ | 1,293 | ||||||||
Short term and other | 2,647 | 1,111 | 3,758 | |||||||||||||
Receivables | 11 | 11 | ||||||||||||||
Payable to brokers | (23 | ) | (23 | ) |
Unrealized | |||||||||||||||||||||||||||||||||||||||||||||
Gains | |||||||||||||||||||||||||||||||||||||||||||||
(Losses) | |||||||||||||||||||||||||||||||||||||||||||||
Unrealized | Recognized in | ||||||||||||||||||||||||||||||||||||||||||||
Net Realized | Gains | Other | |||||||||||||||||||||||||||||||||||||||||||
Investment Gains | (Losses) | Comprehensive | |||||||||||||||||||||||||||||||||||||||||||
(Losses) and Net Change | Recognized in | Income (Loss) | |||||||||||||||||||||||||||||||||||||||||||
in Unrealized Investment | Net Income | on Level 3 | |||||||||||||||||||||||||||||||||||||||||||
Gains (Losses) | (Loss) on Level 3 | Assets and | |||||||||||||||||||||||||||||||||||||||||||
Included in | Transfers | Transfers | Assets and | Liabilities | |||||||||||||||||||||||||||||||||||||||||
Balance, | Net Income | Included in | into | out of | Balance, | Liabilities Held | Held at | ||||||||||||||||||||||||||||||||||||||
2019 | April 1 | (Loss) | OCI | Purchases | Sales | Settlements | Level 3 | Level 3 | June 30 | at June 30 | June 30 | ||||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds and other | $ | 253 | $ | 12 | $ | 76 | $ | (2 | ) | $ | (1 | ) | $ | 338 | $ | 10 | |||||||||||||||||||||||||||||
Asset-backed | 184 | 4 | (4 | ) | $ | 40 | (31 | ) | 193 | 5 | |||||||||||||||||||||||||||||||||||
Fixed maturities available-for-sale | 437 | $ | - | 16 | 76 | $ | - | (6 | ) | 40 | (32 | ) | 531 | $ | - | 15 | |||||||||||||||||||||||||||||
Fixed maturities trading | 5 | (1 | ) | 4 | (1 | ) | |||||||||||||||||||||||||||||||||||||||
Total fixed maturities | $ | 442 | $ | (1 | ) | $ | 16 | $ | 76 | $ | - | $ | (6 | ) | $ | 40 | $ | (32 | ) | $ | 535 | $ | (1 | ) | $ | 15 | |||||||||||||||||||
Equity securities | $ | 21 | $ | 2 | $ | 23 |
Net Realized Investment Gains (Losses) and Net Change in Unrealized Investment Gains (Losses) | Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and | Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and | ||||||||||||||||||||||||||||||||||||||||||
2020 | Balance, April 1 | Included in Net Income (Loss) | Included in OCI | Purchases | Sales | Settlements | Transfers into Level 3 | Transfers out of Level 3 | Balance, June 30 | Liabilities Held at June 30 | Liabilities Held at June 30 | |||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds and other | $ | 496 | $ | 59 | $ | 4 | $ | (4 | ) | $ | 555 | $ | 58 | |||||||||||||||||||||||||||||||
Asset-backed | 197 | 18 | 35 | $ | (9 | ) | (5 | ) | $ | (14 | ) | 222 | 18 | |||||||||||||||||||||||||||||||
Fixed maturities available-for-sale | 693 | $ | - | 77 | 39 | (9 | ) | (9 | ) | $ | - | (14 | ) | 777 | $ | - | 76 | |||||||||||||||||||||||||||
Fixed maturities trading | 3 | 1 | 4 | 1 | ||||||||||||||||||||||||||||||||||||||||
Total fixed maturities | $ | 696 | $ | 1 | $ | 77 | $ | 39 | $ | (9 | ) | $ | (9 | ) | $ | - | $ | (14 | ) | $ | 781 | $ | 1 | $ | 76 | |||||||||||||||||||
Equity securities | $ | 16 | $ | (4 | ) | $ | 15 | $ | 27 | $ | (4 | ) |
Net Realized Investment Gains (Losses) and Net Change in Unrealized Investment Gains (Losses) | Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and | Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and | ||||||||||||||||||||||||||||||||||||||||||
2019 | Balance, April 1 | Included in Net Income (Loss) | Included in OCI | Purchases | Sales | Settlements | Transfers into Level 3 | Transfers out of Level 3 | Balance, June 30 | Liabilities Held at June 30 | Liabilities Held at June 30 | |||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds and other | $ | 253 | $ | 12 | $ | 76 | $ | (2 | ) | $ | (1 | ) | $ | 338 | $ | 10 | ||||||||||||||||||||||||||||
Asset-backed | 184 | 4 | (4 | ) | $ | 40 | (31 | ) | 193 | 5 | ||||||||||||||||||||||||||||||||||
Fixed maturities available-for-sale | 437 | $ | - | 16 | 76 | $ | - | (6 | ) | 40 | (32 | ) | 531 | $ | - | 15 | ||||||||||||||||||||||||||||
Fixed maturities trading | 5 | (1 | ) | 4 | (1 | ) | ||||||||||||||||||||||||||||||||||||||
Total fixed maturities | $ | 442 | $ | (1 | ) | $ | 16 | $ | 76 | $ | - | $ | (6 | ) | $ | 40 | $ | (32 | ) | $ | 535 | $ | (1 | ) | $ | 15 | ||||||||||||||||||
Equity securities | $ | 21 | $ | 2 | $ | 23 |
Unrealized | |||||||||||||||||||||||||||||||||||||||||
Gains | |||||||||||||||||||||||||||||||||||||||||
Net Realized | (Losses) | ||||||||||||||||||||||||||||||||||||||||
Investment Gains | Recognized in | ||||||||||||||||||||||||||||||||||||||||
(Losses) and Net Change | Net Income | ||||||||||||||||||||||||||||||||||||||||
in Unrealized Investment | (Loss) on Level | ||||||||||||||||||||||||||||||||||||||||
Gains (Losses) | 3 Assets and | ||||||||||||||||||||||||||||||||||||||||
Included in | Transfers | Transfers | Liabilities | ||||||||||||||||||||||||||||||||||||||
Balance, | Net Income | Included in | into | out of | Balance, | Held at | |||||||||||||||||||||||||||||||||||
2018 | April 1 | (Loss) | OCI | Purchases | Sales | Settlements | Level 3 | Level 3 | June 30 | June 30 | |||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||||||||||||||||||
Corporate bonds and other | $ | 100 | $ | (1 | ) | $ | 2 | $ | (5 | ) | $ | (2 | ) | $ | 94 | ||||||||||||||||||||||||||
States, municipalities and political subdivisions | 1 | 1 | |||||||||||||||||||||||||||||||||||||||
Asset-backed | 279 | (1 | ) | 41 | (6 | ) | $ | 13 | $ | (53 | ) | 273 | |||||||||||||||||||||||||||||
Fixed maturities available-for-sale | 380 | $ | - | (2 | ) | 43 | (5 | ) | (8 | ) | 13 | (53 | ) | 368 | $ | - | |||||||||||||||||||||||||
Fixed maturities trading | 7 | 7 | |||||||||||||||||||||||||||||||||||||||
Total fixed maturities | $ | 387 | $ | - | $ | (2 | ) | $ | 43 | $ | (5 | ) | $ | (8 | ) | $ | 13 | $ | (53 | ) | $ | 375 | $ | - | |||||||||||||||||
Equity securities | $ | 20 | $ | (1 | ) | $ | (1 | ) | $ | 18 | $ | (1 | ) |
Net Realized Investment Gains (Losses) and Net Change in Unrealized Investment Gains (Losses) | Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and | Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and | ||||||||||||||||||||||||||||||||||||||||||
2020 | Balance, January 1 | Included in Net Income (Loss) | Included in OCI | Purchases | Sales | Settlements | Transfers into Level 3 | Transfers out of Level 3 | Balance, June 30 | Liabilities Held at June 30 | Liabilities Held at June 30 | |||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds and other | $ | 468 | $ | 22 | $ | 71 | $ | (6 | ) | $ | 555 | $ | 24 | |||||||||||||||||||||||||||||||
Asset-backed | 165 | 10 | 80 | $ | (9 | ) | (9 | ) | $ | (15 | ) | 222 | 10 | |||||||||||||||||||||||||||||||
Fixed maturities available-for-sale | 633 | $ | - | 32 | 151 | (9 | ) | (15 | ) | $ | - | (15 | ) | 777 | $ | - | 34 | |||||||||||||||||||||||||||
Fixed maturities trading | 4 | 4 | ||||||||||||||||||||||||||||||||||||||||||
Total fixed maturities | $ | 637 | $ | - | $ | 32 | $ | 151 | $ | (9 | ) | $ | (15 | ) | $ | - | $ | (15 | ) | $ | 781 | $ | - | $ | 34 | |||||||||||||||||||
Equity securities | $ | 19 | $ | (7 | ) | $ | 15 | $ | 27 | $ | (7 | ) |
Net Realized Investment Gains (Losses) and Net Change in Unrealized Investment Gains (Losses) | Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and | Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and | ||||||||||||||||||||||||||||||||||||||||||
2019 | Balance, January 1 | Included in Net Income (Loss) | Included in OCI | Purchases | Sales | Settlements | Transfers into Level 3 | Transfers out of Level 3 | Balance, June 30 | Liabilities Held at June 30 | Liabilities Held at June 30 | |||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds and other | $ | 222 | $ | 20 | $ | 132 | $ | (4 | ) | $ | (32 | ) | $ | 338 | $ | 17 | ||||||||||||||||||||||||||||
Asset-backed | 197 | 7 | 20 | (8 | ) | $ | 45 | (68 | ) | 193 | 8 | |||||||||||||||||||||||||||||||||
Fixed maturities available-for-sale | 419 | $ | - | 27 | 152 | $ | - | (12 | ) | 45 | (100 | ) | 531 | $ | - | 25 | ||||||||||||||||||||||||||||
Fixed maturities trading | 6 | (2 | ) | 4 | (2 | ) | ||||||||||||||||||||||||||||||||||||||
Total fixed maturities | $ | 425 | $ | (2 | ) | $ | 27 | $ | 152 | $ | - | $ | (12 | ) | $ | 45 | $ | (100 | ) | $ | 535 | $ | (2 | ) | $ | 25 | ||||||||||||||||||
Equity securities | $ | 19 | $ | 2 | $ | 2 | $ | 23 | $ | 3 |
Unrealized | |||||||||||||||||||||||||||||||||||||||||||||
Gains | |||||||||||||||||||||||||||||||||||||||||||||
(Losses) | |||||||||||||||||||||||||||||||||||||||||||||
Unrealized | Recognized in | ||||||||||||||||||||||||||||||||||||||||||||
Net Realized | Gains (Losses) | Other | |||||||||||||||||||||||||||||||||||||||||||
Investment Gains | Recognized in | Comprehensive | |||||||||||||||||||||||||||||||||||||||||||
(Losses) and Net Change | Net Income | Income (Loss) | |||||||||||||||||||||||||||||||||||||||||||
in Unrealized Investment | (Loss) on Level | on Level 3 | |||||||||||||||||||||||||||||||||||||||||||
Gains (Losses) | 3 Assets and | Assets and | |||||||||||||||||||||||||||||||||||||||||||
Included in | Transfers | Transfers | Liabilities | Liabilities | |||||||||||||||||||||||||||||||||||||||||
Balance, | Net Income | Included in | into | out of | Balance, | Held at | Held at | ||||||||||||||||||||||||||||||||||||||
2019 | January 1 | (Loss) | OCI | Purchases | Sales | Settlements | Level 3 | Level 3 | June 30 | June 30 | June 30 | ||||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds and other | $ | 222 | $ | 20 | $ | 132 | $ | (4 | ) | $ | (32 | ) | $ | 338 | $ | 17 | |||||||||||||||||||||||||||||
Asset-backed | 197 | 7 | 20 | (8 | ) | $ | 45 | (68 | ) | 193 | 8 | ||||||||||||||||||||||||||||||||||
Fixed maturities available-for-sale | 419 | $ | - | 27 | 152 | $ | - | (12 | ) | 45 | (100 | ) | 531 | $ | - | 25 | |||||||||||||||||||||||||||||
Fixed maturities trading | 6 | (2 | ) | 4 | (2 | ) | |||||||||||||||||||||||||||||||||||||||
Total fixed maturities | $ | 425 | $ | (2 | ) | $ | 27 | $ | 152 | $ | - | $ | (12 | ) | $ | 45 | $ | (100 | ) | $ | 535 | $ | (2 | ) | $ | 25 | |||||||||||||||||||
Equity securities | $ | 19 | $ | 2 | $ | 2 | $ | 23 | $ | 3 |
Unrealized | |||||||||||||||||||||||||||||||||||||||||
Gains | |||||||||||||||||||||||||||||||||||||||||
Net Realized | (Losses) | ||||||||||||||||||||||||||||||||||||||||
Investment Gains | Recognized in | ||||||||||||||||||||||||||||||||||||||||
(Losses) and Net Change | Net Income | ||||||||||||||||||||||||||||||||||||||||
in Unrealized Investment | (Loss) on Level | ||||||||||||||||||||||||||||||||||||||||
Gains (Losses) | 3 Assets and | ||||||||||||||||||||||||||||||||||||||||
Included in | Transfers | Transfers | Liabilities | ||||||||||||||||||||||||||||||||||||||
Balance, | Net Income | Included in | into | out of | Balance, | Held at | |||||||||||||||||||||||||||||||||||
2018 | January 1 | (Loss) | OCI | Purchases | Sales | Settlements | Level 3 | Level 3 | June 30 | June 30 | |||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||||||||||||||||||
Corporate bonds and other | $ | 98 | $ | (1 | ) | $ | (1 | ) | $ | 2 | $ | (5 | ) | $ | (4 | ) | $ | 5 | $ | 94 | |||||||||||||||||||||
States, municipalities and political subdivisions | 1 | 1 | |||||||||||||||||||||||||||||||||||||||
Asset-backed | 335 | 7 | (6 | ) | 71 | (72 | ) | (12 | ) | 13 | $ | (63 | ) | 273 | |||||||||||||||||||||||||||
Fixed maturities available-for-sale | 434 | 6 | (7 | ) | 73 | (77 | ) | (16 | ) | 18 | (63 | ) | 368 | $ | - | ||||||||||||||||||||||||||
Fixed maturities trading | 4 | 3 | 7 | 3 | |||||||||||||||||||||||||||||||||||||
Total fixed maturities | $ | 438 | $ | 9 | $ | (7 | ) | $ | 73 | $ | (77 | ) | $ | (16 | ) | $ | 18 | $ | (63 | ) | $ | 375 | $ | 3 | |||||||||||||||||
Equity securities | $ | 22 | $ | (3 | ) | $ | (1 | ) | $ | 18 | $ | (3 | ) |
Major Category of Assets and Liabilities | Consolidated Condensed Statements of | |
Fixed maturity securities available-for-sale | Investment gains (losses) | |
Fixed maturity securities trading | Net investment income | |
Equity securities | Investment gains (losses) and Net investment income | |
Other invested assets | Investment gains (losses) and Net investment income | |
Derivative financial instruments held in a trading portfolio | Net investment income | |
Derivative financial instruments, other | Investment gains (losses) and Operating revenues and other | |
June 30, 2019 | Estimated Fair Value | Valuation Techniques | Unobservable Inputs | Range (Weighted Average) | ||||||||||||||||||||
June 30, 2020 | Estimated Fair Value | Valuation Techniques | Unobservable Inputs | Range (Weighted Average) | ||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||
Fixed maturity securities | $ | 381 | Discounted cash flow | Credit spread | 1% – 5% (2% | ) | $ | 693 | Discounted cash flow | Credit spread | 1% – 9% (3%) | |||||||||||||
December 31, 2018 | ||||||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||
Fixed maturity securities | $ | 228 | Discounted cash flow | Credit spread | 1 % – 12 % (3 % | ) | $ | 525 | Discounted cash flow | Credit spread | 1% – 6% (2%) |
Carrying | Estimated Fair Value | ||||||||||||||||||||||||||||||||||||
Carrying | Estimated Fair Value | ||||||||||||||||||||||||||||||||||||
June 30, 2019 | Amount | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||
June 30, 2020 | Amount | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||
Other invested assets, primarily mortgage loans | $ | 916 | $ | 936 | $ | 936 | $ | 1,042 | $ | 1,104 | $ | 1,104 | |||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||
Short term debt | 85 | $ | 8 | 76 | 84 | 45 | $ | 8 | 37 | 45 | |||||||||||||||||||||||||||
Long term debt | 11,443 | 10,909 | 555 | 11,464 | 9,947 | 10,038 | 738 | 10,776 | |||||||||||||||||||||||||||||
December 31, 2018 | |||||||||||||||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||
Other invested assets, primarily mortgage | |||||||||||||||||||||||||||||||||||||
loans | $ | 839 | $ | 827 | $ | 827 | |||||||||||||||||||||||||||||||
Other invested assets, primarily mortgage loans | $ | 994 | $ | 1,025 | $ | 1,025 | |||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||
Short term debt | 15 | $ | 14 | 14 | 75 | $ | 9 | 66 | 75 | ||||||||||||||||||||||||||||
Long term debt | 11,345 | 10,111 | 653 | 10,764 | 11,443 | 10,884 | 626 | 11,510 |
Six Months Ended June 30 | 2019 | 2018 | 2020 | 2019 | ||||||||||||
(In millions) | ||||||||||||||||
Reserves, beginning of year: | ||||||||||||||||
Gross | $ | 21,984 | $ | 22,004 | $ | 21,720 | $ | 21,984 | ||||||||
Ceded | 4,019 | 3,934 | 3,835 | 4,019 | ||||||||||||
Net reserves, beginning of year | 17,965 | 18,070 | 17,885 | 17,965 | ||||||||||||
Net incurred claim and claim adjustment expenses: | ||||||||||||||||
Provision for insured events of current year | 2,615 | 2,552 | 2,899 | 2,615 | ||||||||||||
Increase (decrease) in provision for insured events of prior years | (36 | ) | (112 | ) | 19 | (36 | ) | |||||||||
Amortization of discount | 98 | 92 | 98 | 98 | ||||||||||||
Total net incurred (a) | 2,677 | 2,532 | 3,016 | 2,677 | ||||||||||||
Net payments attributable to: | ||||||||||||||||
Current year events | (315 | ) | (312 | ) | (256 | ) | (315 | ) | ||||||||
Prior year events | (2,519 | ) | (2,387 | ) | (2,342 | ) | (2,519 | ) | ||||||||
Total net payments | (2,834 | ) | (2,699 | ) | (2,598 | ) | (2,834 | ) | ||||||||
Foreign currency translation adjustment and other | 55 | (70 | ) | (35 | ) | 55 | ||||||||||
Net reserves, end of period | 17,863 | 17,833 | 18,268 | 17,863 | ||||||||||||
Ceded reserves, end of period | 3,866 | 4,157 | 4,002 | 3,866 | ||||||||||||
Gross reserves, end of period | $ | 21,729 | $ | 21,990 | $ | 22,270 | $ | 21,729 |
(a) | Total net incurred above does not agree to Insurance claims and policyholders’ benefits as reflected on the Consolidated Condensed Statements of |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(In millions) | ||||||||||||||||
Medical professional liability | $ | 15 | $ | 3 | $ | 30 | $ | 23 | ||||||||
Other professional liability and management liability | (7 | ) | (34 | ) | (19 | ) | (68 | ) | ||||||||
Surety | (15 | ) | (15 | ) | (40 | ) | (30 | ) | ||||||||
Commercial auto | (3 | ) | (8 | ) | (1 | ) | ||||||||||
General liability | 13 | 26 | (7 | ) | 18 | |||||||||||
Workers’ compensation | (7 | ) | (6 | ) | (5 | ) | (12 | ) | ||||||||
Other | (27 | ) | (33 | ) | 4 | (28 | ) | |||||||||
Total pretax (favorable) unfavorable development | $ | (31 | ) | $ | (59 | ) | $ | (45 | ) | $ | (98 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(In millions) | ||||||||||||||||
Medical professional liability | $ | 15 | $ | 10 | $ | 30 | ||||||||||
Other professional liability and management liability | $ | (9 | ) | (7 | ) | (6 | ) | (19 | ) | |||||||
Surety | (15 | ) | (30 | ) | (40 | ) | ||||||||||
Commercial auto | 15 | (3 | ) | 24 | (8 | ) | ||||||||||
General liability | 50 | 13 | 50 | (7 | ) | |||||||||||
Workers’ compensation | (61 | ) | (7 | ) | (74 | ) | (5 | ) | ||||||||
Property and other | 27 | (27 | ) | 33 | 4 | |||||||||||
Total pretax (favorable) unfavorable development | $ | 22 | $ | (31 | ) | $ | 7 | $ | (45 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(In millions) | ||||||||||||||||
Additional amounts ceded under LPT: | ||||||||||||||||
Net A&EP adverse development before consideration of LPT | $ | 113 | ||||||||||||||
Provision for uncollectible third-party reinsurance on A&EP | (16 | ) | ||||||||||||||
Total additional amounts ceded under LPT | $ | - | $ | - | $ | - | 97 | |||||||||
Retroactive reinsurance benefit recognized | (14 | ) | (15 | ) | (36 | ) | (72 | ) | ||||||||
Pretax impact of deferred retroactive reinsurance | $ | (14 | ) | $ | (15 | ) | $ | (36 | ) | $ | 25 |
Year Ended December 31 | ||||
(In millions) | ||||
2019 | $ | 75 | ||
2020 | 79 | |||
2021 | 79 | |||
2022 | 68 | |||
2023 | 57 | |||
Thereafter | 344 | |||
Total | $ | 702 |
Operating | ||||
As of June 30, 2019 | Leases | |||
(In millions) | ||||
2019 (a) | $ | 53 | ||
2020 | 111 | |||
2021 | 108 | |||
2022 | 97 | |||
2023 | 86 | |||
Thereafter | 421 | |||
Total | 876 | |||
Less: discount | 174 | |||
Total lease liabilities | $ | 702 |
Net Unrealized Gains (Losses) on Investments with OTTI Losses | Net Unrealized Gains (Losses) on Other Investments | Unrealized Gains (Losses) on Cash Flow Hedges | Pension and Postretirement Benefits | Foreign Currency Translation | Total Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Balance, April 1, 2019 (a) | $ | 18 | $ | 527 | $ | (1 | ) | $ | (786 | ) | $ | (148 | ) | $ | (390 | ) | ||||||||
Other comprehensive income (loss) before reclassifications, after tax of $(1), $(114), $2, $0 and $0 | (1 | ) | 434 | (6 | ) | 3 | 430 | |||||||||||||||||
Reclassification of losses from accumulated other comprehensive income, after tax of $0, $0, $0, $(3) and $0 | 1 | 2 | 7 | 10 | ||||||||||||||||||||
Other comprehensive income (loss) | - | 436 | (6 | ) | 7 | 3 | 440 | |||||||||||||||||
Amounts attributable to noncontrolling interests | (46 | ) | (1 | ) | (47 | ) | ||||||||||||||||||
Balance, June 30, 2019 | $ | 18 | $ | 917 | $ | (7 | ) | $ | (780 | ) | $ | (145 | ) | $ | 3 |
Net Unrealized Gains (Losses) on Investments with an Allowance for Credit Losses | Net Unrealized Gains (Losses) on Other Investments | Unrealized Gains (Losses) on Cash Flow Hedges | Pension and Postretirement Benefits | Foreign Currency Translation | Total Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Balance, April 1, 2020 | $ | (10 | ) | $ | (15 | ) | $ | (25 | ) | $ | (842 | ) | $ | (201 | ) | $ | (1,093 | ) | ||||||
Other comprehensive income (loss) before reclassifications, after tax of $0, $(321), $2, $0 and $0 | (2 | ) | 1,209 | (1 | ) | (2 | ) | 29 | 1,233 | |||||||||||||||
Reclassification of (income) losses from accumulated other comprehensive income, after tax of $(1), $4, $(1), $(2) and $0 | 4 | (18 | ) | 1 | 8 | (5 | ) | |||||||||||||||||
Other comprehensive income | 2 | 1,191 | - | 6 | 29 | 1,228 | ||||||||||||||||||
Amounts attributable to noncontrolling interests | (126 | ) | (1 | ) | (3 | ) | (130 | ) | ||||||||||||||||
Balance, June 30, 2020 | $ | (8 | ) | $ | 1,050 | $ | (25 | ) | $ | (837 | ) | $ | (175 | ) | $ | 5 |
Total | ||||||||||||||||||||||||
Accumulated | ||||||||||||||||||||||||
OTTI | Unrealized | Foreign | Other | |||||||||||||||||||||
Gains | Gains (Losses) | Cash Flow | Pension | Currency | Comprehensive | |||||||||||||||||||
(Losses) | on Investments | Hedges | Liability | Translation | Income (Loss) | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Balance, April 1, 2018 | $ | 18 | $ | 386 | $ | 10 | $ | (753 | ) | $ | (78 | ) | $ | (417 | ) | |||||||||
Other comprehensive income (loss) before reclassifications, after tax of $1, $45, $0, $0 and $0 | (1 | ) | (156 | ) | 4 | (52 | ) | (205 | ) | |||||||||||||||
Reclassification of (gains) losses from accumulated other comprehensive income, after tax of $0, $1, $0, $(2) and $0 | (3 | ) | 9 | 6 | ||||||||||||||||||||
Other comprehensive income (loss) | (1 | ) | (159 | ) | 4 | 9 | (52 | ) | (199 | ) | ||||||||||||||
Amounts attributable to noncontrolling interests | 17 | (2 | ) | 5 | 20 | |||||||||||||||||||
Purchase of Boardwalk Pipelines common units | (1 | ) | (28 | ) | (29 | ) | ||||||||||||||||||
Balance, June 30, 2018 | $ | 17 | $ | 244 | $ | 13 | $ | (774 | ) | $ | (125 | ) | $ | (625 | ) | |||||||||
Balance, April 1, 2019 | $ | 18 | $ | 527 | $ | (1 | ) | $ | (786 | ) | $ | (148 | ) | $ | (390 | ) | ||||||||
Other comprehensive income (loss) before reclassifications, after tax of $ (1) 114) 2 , $0 and $0 | (1 | ) | 434 | (6 | ) | 3 | 430 | |||||||||||||||||
Reclassification of losses from accumulated other comprehensive income, after tax of $ 0 , $0 , $0 , $(3) and $0 | 1 | 2 | 7 | 10 | ||||||||||||||||||||
Other comprehensive income (loss) | — | 436 | (6 | ) | 7 | 3 | 440 | |||||||||||||||||
Amounts attributable to noncontrolling interests | (46 | ) | (1 | ) | (47 | ) | ||||||||||||||||||
Balance, June 30, 2019 | $ | 18 | $ | 917 | $ | (7 | ) | $ | (780 | ) | $ | (145 | ) | $ | 3 |
Net Unrealized Gains (Losses) on Investments with OTTI Losses | Net Unrealized Gains (Losses) on Other Investments | Unrealized Gains (Losses) on Cash Flow Hedges | Pension and Postretirement Benefits | Foreign Currency Translation | Total Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Balance, January 1, 2019 (a) | $ | 14 | $ | 57 | $ | 5 | $ | (793 | ) | $ | (163 | ) | $ | (880 | ) | |||||||||
Other comprehensive income (loss) before reclassifications, after tax of $(2), $(254), $4, $0 and $0 | 3 | 955 | (12 | ) | (1 | ) | 20 | 965 | ||||||||||||||||
Reclassification of losses from accumulated other comprehensive income, after tax of $0, $(1), $0, $(5) and $0 | 1 | 7 | 16 | 24 | ||||||||||||||||||||
Other comprehensive income (loss) | 4 | 962 | (12 | ) | 15 | 20 | 989 | |||||||||||||||||
Amounts attributable to noncontrolling interests | (102 | ) | (2 | ) | (2 | ) | (106 | ) | ||||||||||||||||
Balance, June 30, 2019 | $ | 18 | $ | 917 | $ | (7 | ) | $ | (780 | ) | $ | (145 | ) | $ | 3 |
Net Unrealized Gains (Losses) on Investments with an Allowance for Credit Losses | Net Unrealized Gains (Losses) on Other Investments | Unrealized Gains (Losses) on Cash Flow Hedges | Pension and Postretirement Benefits | Foreign Currency Translation | Total Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Balance, January 1, 2020 (a) | $ | - | $ | 918 | $ | (6 | ) | $ | (855 | ) | $ | (125 | ) | $ | (68 | ) | ||||||||
Other comprehensive income (loss) before reclassifications, after tax of $13, $(34), $8, $0 and $0 | (50 | ) | 143 | (20 | ) | (1 | ) | (55 | ) | 17 | ||||||||||||||
Reclassification of losses from accumulated other comprehensive income, after tax of $(11), $(2), $(1), $(5) and $0 | 41 | 4 | 1 | 21 | 67 | |||||||||||||||||||
Other comprehensive income (loss) | (9 | ) | 147 | (19 | ) | 20 | (55 | ) | 84 | |||||||||||||||
Amounts attributable to noncontrolling interests | 1 | (15 | ) | (2 | ) | 5 | (11 | ) | ||||||||||||||||
Balance, June 30, 2020 | $ | (8 | ) | $ | 1,050 | $ | (25 | ) | $ | (837 | ) | $ | (175 | ) | $ | 5 |
(a) | On January 1, 2020, the Company adopted ASU 2016-13; see Note 1. The Net Unrealized Gains (Losses) on Investments with OTTI Losses column that tracked the change in unrealized gains (losses) on investments with OTTI losses has been replaced with the Net Unrealized Gains (Losses) on Investments with an Allowance for Credit Losses column. The balance as of January 1, 2020 in the Net Unrealized Gains (Losses) on Investments with OTTI Losses column is now reported in the Net Unrealized Gains (Losses) on Other Investments column. Prior period amounts were not adjusted for the adoption of this standard. |
Major Category of AOCI | Affected Line Item | |
Investment gains (losses) | ||
Unrealized gains (losses) on | ||
Operating revenues and other, Interest expense and Operating expenses and other | ||
Pension | Operating expenses and other |
Total | ||||||||||||||||||||||||
Accumulated | ||||||||||||||||||||||||
OTTI | Unrealized | Foreign | Other | |||||||||||||||||||||
Gains | Gains (Losses) | Cash Flow | Pension | Currency | Comprehensive | |||||||||||||||||||
(Losses) | on Investments | Hedges | Liability | Translation | Income (Loss) | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Balance, January 1, 2018, as reported | $ | 22 | $ | 673 | $ | - | $ | (633 | ) | $ | (88 | ) | $ | (26 | ) | |||||||||
Cumulative effect adjustment from changes in accounting standards, after tax of $0, $8, $0, $0 and $0 | 4 | 98 | (130 | ) | (28 | ) | ||||||||||||||||||
Balance, January 1, 2018, as adjusted | 26 | 771 | - | (763 | ) | (88 | ) | (54 | ) | |||||||||||||||
Other comprehensive income (loss) before reclassifications, after tax of $3, $150, $(2), $0 and $0 | (11 | ) | (570 | ) | 12 | (41 | ) | (610 | ) | |||||||||||||||
Reclassification of (gains) losses from accumulated other comprehensive income, after tax of $0, $5, $0, $(5) and $0 | 1 | (18 | ) | 2 | 19 | 4 | ||||||||||||||||||
Other comprehensive income (loss) | (10 | ) | (588 | ) | 14 | 19 | (41 | ) | (606 | ) | ||||||||||||||
Amounts attributable to noncontrolling interests | 1 | 61 | (2 | ) | 4 | 64 | ||||||||||||||||||
Purchase of Boardwalk Pipelines common units | (1 | ) | (28 | ) | (29 | ) | ||||||||||||||||||
Balance, June 30, 2018 | $ | 17 | $ | 244 | $ | 13 | $ | (774 | ) | $ | (125 | ) | $ | (625 | ) | |||||||||
Balance, January 1, 2019 | $ | 14 | $ | 57 | $ | 5 | $ | (793 | ) | $ | (163 | ) | $ | (880 | ) | |||||||||
Other comprehensive income (loss) before reclassifications, after tax of $(2), $( 254) , $4 , $0 and $0 | 3 | 955 | (12 | ) | (1 | ) | 20 | 965 | ||||||||||||||||
Re classification of losses from accumulated othercomprehensive incom e, after tax of $0 , $(1) , $0 ,$ (5) and $0 | 1 | 7 | 16 | 24 | ||||||||||||||||||||
Other comprehensive income (loss) | 4 | 962 | (12 | ) | 15 | 20 | 989 | |||||||||||||||||
Amounts attributable to noncontrolling interests | (102 | ) | (2 | ) | (2 | ) | (106 | ) | ||||||||||||||||
Balance, June 30, 2019 | $ | 18 | $ | 917 | $ | (7 | ) | $ | (780 | ) | $ | (145 | ) | $ | 3 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(In millions) | ||||||||||||||||
Non-insurance warranty services – CNA Financial | $ | 285 | $ | 248 | $ | 566 | $ | 486 | ||||||||
Contract drilling – Diamond Offshore | 216 | 268 | 450 | 564 | ||||||||||||
Transportation and storage of natural gas and NGLs and other services – Boardwalk Pipelines | 321 | 281 | 660 | 612 | ||||||||||||
Lodging and related services – Loews Hotels & Co | 185 | 200 | 365 | 383 | ||||||||||||
Rigid plastic packaging and recycled resin – Corporate | 223 | 216 | 437 | 429 | ||||||||||||
Total revenues from contracts with customers | 945 | 965 | 1,912 | 1,988 | ||||||||||||
Other revenues | 16 | 14 | 34 | 34 | ||||||||||||
Operating revenues and other | $ | 961 | $ | 979 | $ | 1,946 | $ | 2,022 |
Three Months Ended June 30, | Six Months Ended June 30 | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(In millions) | ||||||||||||||||
Non-insurance warranty – CNA Financial | $ | 308 | $ | 285 | $ | 609 | $ | 566 | ||||||||
Transportation and storage of natural gas and NGLs and other services – Boardwalk Pipelines | 286 | 321 | 618 | 660 | ||||||||||||
Lodging and related services – Loews Hotels & Co | 16 | 185 | 158 | 365 | ||||||||||||
Rigid plastic packaging and recycled resin – Corporate | 244 | 223 | 500 | 437 | ||||||||||||
Contract drilling – Diamond Offshore (a) | 71 | 216 | 300 | 450 | ||||||||||||
Total revenues from contracts with customers | 617 | 945 | 1,576 | 1,912 | ||||||||||||
Other revenues | 33 | 16 | 56 | 34 | ||||||||||||
Operating revenues and other | $ | 650 | $ | 961 | $ | 1,632 | $ | 1,946 |
(a) | Revenues presented for Diamond Offshore reflect the periods prior to the deconsolidation. See Notes 2 and 14 for further discussion. |
As of June 30, 2020 | ||||
(In millions) | ||||
A- to A++ | $ | 2,717 | ||
B- to B++ | 926 | |||
Insolvent | 4 | |||
Total voluntary reinsurance outstanding balance (a) | $ | 3,647 |
(a) | Expected credit losses for legacy A&EP receivables are ceded to NICO and the reinsurance limit on the LPT has not been exhausted, therefore no allowance is recorded for these receivables and they are excluded from the table above. See Note 6 for more information on the LPT. Also excluded are receivables from involuntary pools. |
Pension Benefits | ||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | Pension Benefits | ||||||||||||||||||||||||||||||
June 30, | June 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Service cost | $ | 1 | $ | 2 | $ | 3 | $ | 4 | $ | 1 | $ | 1 | $ | 2 | $ | 3 | ||||||||||||||||
Interest cost | 30 | 28 | 59 | 55 | 23 | 30 | 46 | 59 | ||||||||||||||||||||||||
Expected return on plan assets | (40 | ) | (45 | ) | (80 | ) | (90 | ) | (44 | ) | (40 | ) | (87 | ) | (80 | ) | ||||||||||||||||
Amortization of unrecognized net loss | 12 | 10 | 23 | 21 | 12 | 12 | 23 | 23 | ||||||||||||||||||||||||
Amortization of unrecognized prior service cost | 1 | 1 | ||||||||||||||||||||||||||||||
Settlement charge | 2 | 3 | 2 | 7 | 3 | 2 | 7 | 2 | ||||||||||||||||||||||||
Net periodic (benefit) cost | $ | 5 | $ | (2 | ) | $ | 7 | $ | (3 | ) | $ | (4 | ) | $ | 5 | $ | (8 | ) | $ | 7 | ||||||||||||
Other Postretirement Benefits | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(In millions) | ||||||||||||||||
Interest cost | $ | 1 | $ | 1 | $ | 1 | ||||||||||
Expected return on plan assets | (1 | ) | $ | (1 | ) | (2 | ) | (2 | ) | |||||||
Net periodic benefit | $ | - | $ | (1 | ) | $ | (1 | ) | $ | (1 | ) |
Other Postretirement Benefits | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(In millions) | ||||||||||||||||
Interest cost | $ | 1 | $ | 1 | ||||||||||||
Expected return on plan assets | $ | (1 | ) | $ | (1 | ) | (2 | ) | (2 | ) | ||||||
Amortization of unrecognized prior service benefit | (1 | ) | ||||||||||||||
Net periodic benefit | $ | (1 | ) | $ | (1 | ) | $ | (1 | ) | $ | (2 | ) |
June 30, 2020 | CNA Financial | Boardwalk Pipelines | Loews Hotels & Co | Corporate | Diamond Offshore | Total | ||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Total assets | $ | 62,055 | $ | 9,321 | $ | 1,697 | $ | 5,366 | $ | - | $ | 78,439 | ||||||||||||
December 31, 2019 | ||||||||||||||||||||||||
Total assets | $ | 60,583 | $ | 9,248 | $ | 1,728 | $ | 4,850 | $ | 5,834 | $ | 82,243 |
Three Months Ended June 30, 2020 | CNA Financial | Boardwalk Pipelines | Loews Hotels & Co | Corporate | Diamond Offshore (a) | Total | ||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Insurance premiums | $ | 1,850 | $ | 1,850 | ||||||||||||||||||||
Net investment income | 534 | $ | 110 | 644 | ||||||||||||||||||||
Investment gains (losses) | 69 | (1,211 | ) | (1,142 | ) | |||||||||||||||||||
Non-insurance warranty revenue | 308 | 308 | ||||||||||||||||||||||
Operating revenues and other | 5 | $ | 296 | $ | 34 | 244 | $ | 71 | 650 | |||||||||||||||
Total | 2,766 | 296 | 34 | (857 | ) | 71 | 2,310 | |||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Insurance claims and policyholders’ benefits | 1,642 | 1,642 | ||||||||||||||||||||||
Amortization of deferred acquisition costs | 342 | 342 | ||||||||||||||||||||||
Non-insurance warranty expense | 285 | 285 | ||||||||||||||||||||||
Operating expenses and other | 283 | 210 | 123 | 260 | 116 | 992 | ||||||||||||||||||
Interest | 31 | 41 | 8 | 32 | 11 | 123 | ||||||||||||||||||
Total | 2,583 | 251 | 131 | 292 | 127 | 3,384 | ||||||||||||||||||
Income (loss) before income tax | 183 | 45 | (97 | ) | (1,149 | ) | (56 | ) | (1,074 | ) | ||||||||||||||
Income tax (expense) benefit | (32 | ) | (11 | ) | 25 | 241 | 5 | 228 | ||||||||||||||||
Net income (loss) | 151 | 34 | (72 | ) | (908 | ) | (51 | ) | (846 | ) | ||||||||||||||
Amounts attributable to noncontrolling interests | (16 | ) | 27 | 11 | ||||||||||||||||||||
Net income (loss) attributable to Loews Corporation | $ | 135 | $ | 34 | $ | (72 | ) | $ | (908 | ) | $ | (24 | ) | $ | (835 | ) |
(a) | Amounts presented for Diamond Offshore reflect the periods prior to the deconsolidation. |
Three Months Ended June 30, 2019 | CNA Financial | Diamond Offshore | Boardwalk Pipelines | Loews Hotels & Co | Corporate | Total | ||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Insurance premiums | $ | 1,824 | $ | 1,824 | ||||||||||||||||||||
Net investment income | 515 | $ | 2 | $ | 1 | $ | 33 | 551 | ||||||||||||||||
Investment gains | 2 | 2 | ||||||||||||||||||||||
Non-insurance warranty revenue | 285 | 285 | ||||||||||||||||||||||
Operating revenues and other | 4 | 222 | $ | 327 | 185 | 223 | 961 | |||||||||||||||||
Total | 2,630 | 224 | 327 | 186 | 256 | 3,623 | ||||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Insurance claims and policyholders’ benefits | 1,352 | 1,352 | ||||||||||||||||||||||
Amortization of deferred acquisition costs | 338 | 338 | ||||||||||||||||||||||
Non-insurance warranty expense | 263 | 263 | ||||||||||||||||||||||
Operating expenses and other | 279 | 335 | 209 | 163 | 245 | 1,231 | ||||||||||||||||||
Interest | 55 | 31 | 46 | 5 | 27 | 164 | ||||||||||||||||||
Total | 2,287 | 366 | 255 | 168 | 272 | 3,348 | ||||||||||||||||||
Income (loss) before income tax | 343 | (142 | ) | 72 | 18 | (16 | ) | 275 | ||||||||||||||||
Income tax (expense) benefit | (64 | ) | 36 | (19 | ) | (6 | ) | 3 | (50 | ) | ||||||||||||||
Net income (loss) | 279 | (106 | ) | 53 | 12 | (13 | ) | 225 | ||||||||||||||||
Amounts attributable to noncontrolling interests | (30 | ) | 54 | 24 | ||||||||||||||||||||
Net income (loss) attributable to Loews Corporation | $ | 249 | $ | (52 | ) | $ | 53 | $ | 12 | $ | (13 | ) | $ | 249 |
Three Months Ended June 30, 2018 | CNA Financial | Diamond Offshore | Boardwalk Pipelines | Loews Hotels & Co | Corporate | Total | ||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Insurance premiums | $ | 1,815 | $ | 1,815 | ||||||||||||||||||||
Net investment income | 506 | $ | 2 | $ | 1 | $ | 42 | 551 | ||||||||||||||||
Investment losses | (3 | ) | (3 | ) | ||||||||||||||||||||
Non-insurance warranty revenue | 248 | 248 | ||||||||||||||||||||||
Operating revenues and other | 8 | 269 | $ | 285 | 200 | 217 | 979 | |||||||||||||||||
Total | 2,574 | 271 | 285 | 201 | 259 | 3,590 | ||||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Insurance claims and policyholders’ benefits | 1,327 | 1,327 | ||||||||||||||||||||||
Amortization of deferred acquisition costs | 359 | 359 | ||||||||||||||||||||||
Non-insurance warranty expense | 225 | 225 | ||||||||||||||||||||||
Operating expenses and other | 299 | 320 | 203 | 169 | 238 | 1,229 | ||||||||||||||||||
Interest | 35 | 30 | 43 | 8 | 27 | 143 | ||||||||||||||||||
Total | 2,245 | 350 | 246 | 177 | 265 | 3,283 | ||||||||||||||||||
Income (loss) before income tax | 329 | (79 | ) | 39 | 24 | (6 | ) | 307 | ||||||||||||||||
Income tax (expense) benefit | (60 | ) | 10 | (2 | ) | (7 | ) | (59 | ) | |||||||||||||||
Net income (loss) | 269 | (69 | ) | 37 | 17 | (6 | ) | 248 | ||||||||||||||||
Amounts attributable to noncontrolling interests | (29 | ) | 32 | (21 | ) | (18 | ) | |||||||||||||||||
Net income (loss) attributable to Loews Corporation | $ | 240 | $ | (37 | ) | $ | 16 | $ | 17 | $ | (6 | ) | $ | 230 |
Six Months Ended June 30, 2019 | CNA Financial | Diamond Offshore | Boardwalk Pipelines | Loews Hotels & Co | Corporate | Total | ||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Insurance premiums | $ | 3,627 | $ | 3,627 | ||||||||||||||||||||
Net investment income | 1,086 | $ | 4 | $ | 1 | $ | 117 | 1,208 | ||||||||||||||||
Investment gains | 33 | 33 | ||||||||||||||||||||||
Non-insurance warranty revenue | 566 | 566 | ||||||||||||||||||||||
Operating revenues and other | 13 | 456 | $ | 673 | 365 | 439 | 1,946 | |||||||||||||||||
Total | 5,325 | 460 | 673 | 366 | 556 | 7,380 | ||||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Insurance claims and policyholders’ benefits | 2,709 | 2,709 | ||||||||||||||||||||||
Amortization of deferred acquisition costs | 680 | 680 | ||||||||||||||||||||||
Non-insurance warranty expense | 523 | 523 | ||||||||||||||||||||||
Operating expenses and other | 563 | 618 | 404 | 319 | 476 | 2,380 | ||||||||||||||||||
Interest | 89 | 61 | 91 | 10 | 54 | 305 | ||||||||||||||||||
Total | 4,564 | 679 | 495 | 329 | 530 | 6,597 | ||||||||||||||||||
Income (loss) before income tax | 761 | (219 | ) | 178 | 37 | 26 | 783 | |||||||||||||||||
Income tax (expense) benefit | (141 | ) | 42 | (46 | ) | (12 | ) | (5 | ) | (162 | ) | |||||||||||||
Net income (loss) | 620 | (177 | ) | 132 | 25 | 21 | 621 | |||||||||||||||||
Amounts attributable to noncontrolling interests | (66 | ) | 88 | 22 | ||||||||||||||||||||
Net income (loss) attributable to Loews Corporation | $ | 554 | $ | (89 | ) | $ | 132 | $ | 25 | $ | 21 | $ | 643 |
Three Months Ended June 30, 2019 | CNA Financial | Boardwalk Pipelines | Loews Hotels & Co | Corporate | Diamond Offshore (a) | Total | ||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Insurance premiums | $ | 1,824 | $ | 1,824 | ||||||||||||||||||||
Net investment income | 515 | $ | 1 | $ | 33 | $ | 2 | 551 | ||||||||||||||||
Investment gains | 2 | 2 | ||||||||||||||||||||||
Non-insurance warranty revenue | 285 | 285 | ||||||||||||||||||||||
Operating revenues and other | 4 | $ | 327 | 185 | 223 | 222 | 961 | |||||||||||||||||
Total | 2,630 | 327 | 186 | 256 | 224 | 3,623 | ||||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Insurance claims and policyholders’ benefits | 1,352 | 1,352 | ||||||||||||||||||||||
Amortization of deferred acquisition costs | 338 | 338 | ||||||||||||||||||||||
Non-insurance warranty expense | 263 | 263 | ||||||||||||||||||||||
Operating expenses and other | 279 | 209 | 163 | 245 | 335 | 1,231 | ||||||||||||||||||
Interest | 55 | 46 | 5 | 27 | 31 | 164 | ||||||||||||||||||
Total | 2,287 | 255 | 168 | 272 | 366 | 3,348 | ||||||||||||||||||
Income (loss) before income tax | 343 | 72 | 18 | (16 | ) | (142 | ) | 275 | ||||||||||||||||
Income tax (expense) benefit | (64 | ) | (19 | ) | (6 | ) | 3 | 36 | (50 | ) | ||||||||||||||
Net income (loss) | 279 | 53 | 12 | (13 | ) | (106 | ) | 225 | ||||||||||||||||
Amounts attributable to noncontrolling interests | (30 | ) | 54 | 24 | ||||||||||||||||||||
Net income (loss) attributable to Loews Corporation | $ | 249 | $ | 53 | $ | 12 | $ | (13 | ) | $ | (52 | ) | $ | 249 |
Six Months Ended June 30, 2020 | CNA Financial | Boardwalk Pipelines | Loews Hotels & Co | Corporate | Diamond Offshore (a) | Total | ||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Insurance premiums | $ | 3,719 | $ | 3,719 | ||||||||||||||||||||
Net investment income (loss) | 863 | $ | (56 | ) | 807 | |||||||||||||||||||
Investment losses | (147 | ) | (1,211 | ) | (1,358 | ) | ||||||||||||||||||
Non-insurance warranty revenue | 609 | 609 | ||||||||||||||||||||||
Operating revenues and other | 13 | $ | 637 | $ | 176 | 501 | $ | 305 | 1,632 | |||||||||||||||
Total | 5,057 | 637 | 176 | (766 | ) | 305 | 5,409 | |||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Insurance claims and policyholders’ benefits | 3,067 | 3,067 | ||||||||||||||||||||||
Amortization of deferred acquisition costs | 686 | 686 | ||||||||||||||||||||||
Non-insurance warranty expense | 566 | 566 | ||||||||||||||||||||||
Operating expenses and other | 583 | 421 | 290 | 528 | 1,196 | 3,018 | ||||||||||||||||||
Interest | 62 | 83 | 16 | 63 | 43 | 267 | ||||||||||||||||||
Total | 4,964 | 504 | 306 | 591 | 1,239 | 7,604 | ||||||||||||||||||
Income (loss) before income tax | 93 | 133 | (130 | ) | (1,357 | ) | (934 | ) | (2,195 | ) | ||||||||||||||
Income tax (expense) benefit | (4 | ) | (34 | ) | 33 | 284 | 26 | 305 | ||||||||||||||||
Net income (loss) | 89 | 99 | (97 | ) | (1,073 | ) | (908 | ) | (1,890 | ) | ||||||||||||||
Amounts attributable to noncontrolling interests | (9 | ) | 432 | 423 | ||||||||||||||||||||
Net income (loss) attributable to Loews Corporation | $ | 80 | $ | 99 | $ | (97 | ) | $ | (1,073 | ) | $ | (476 | ) | $ | (1,467 | ) |
Six Months Ended June 30, 2018 | CNA Financial | Diamond Offshore | Boardwalk Pipelines | Loews Hotels & Co | Corporate | Total | ||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Insurance premiums | $ | 3,600 | $ | 3,600 | ||||||||||||||||||||
Net investment income | 996 | $ | 4 | $ | 1 | $ | 56 | 1,057 | ||||||||||||||||
Investment gains | 6 | 6 | ||||||||||||||||||||||
Non-insurance warranty revenue | 486 | 486 | ||||||||||||||||||||||
Operating revenues and other | 21 | 566 | $ | 622 | 383 | 430 | 2,022 | |||||||||||||||||
Total | 5,109 | 570 | 622 | 384 | 486 | 7,171 | ||||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Insurance claims and policyholders’ benefits | 2,666 | 2,666 | ||||||||||||||||||||||
Amortization of deferred acquisition costs | 655 | 655 | ||||||||||||||||||||||
Non-insurance warranty expense | 441 | 441 | ||||||||||||||||||||||
Operating expenses and other | 601 | 616 | 401 | 325 | 470 | 2,413 | ||||||||||||||||||
Interest | 70 | 58 | 87 | 15 | 54 | 284 | ||||||||||||||||||
Total | 4,433 | 674 | 488 | 340 | 524 | 6,459 | ||||||||||||||||||
Income (loss) before income tax | 676 | (104 | ) | 134 | 44 | �� | (38 | ) | 712 | |||||||||||||||
Income tax (expense) benefit | (115 | ) | 54 | (14 | ) | (14 | ) | 5 | (84 | ) | ||||||||||||||
Net income (loss) | 561 | (50 | ) | 120 | 30 | (33 | ) | 628 | ||||||||||||||||
Amounts attributable to noncontrolling interests | (60 | ) | 23 | (68 | ) | (105 | ) | |||||||||||||||||
Net income (loss) attributable to Loews Corporation | $ | 501 | $ | (27 | ) | $ | 52 | $ | 30 | $ | (33 | ) | $ | 523 |
Six Months Ended June 30, 2019 | CNA Financial | Boardwalk Pipelines | Loews Hotels & Co | Corporate | Diamond Offshore (a) | Total | ||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Insurance premiums | $ | 3,627 | $ | 3,627 | ||||||||||||||||||||
Net investment income | 1,086 | $ | 1 | $ | 117 | $ | 4 | 1,208 | ||||||||||||||||
Investment gains | 33 | 33 | ||||||||||||||||||||||
Non-insurance warranty revenue | 566 | 566 | ||||||||||||||||||||||
Operating revenues and other | 13 | $ | 673 | 365 | 439 | 456 | 1,946 | |||||||||||||||||
Total | 5,325 | 673 | 366 | 556 | 460 | 7,380 | ||||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Insurance claims and policyholders’ benefits | 2,709 | 2,709 | ||||||||||||||||||||||
Amortization of deferred acquisition costs | 680 | 680 | ||||||||||||||||||||||
Non-insurance warranty expense | 523 | 523 | ||||||||||||||||||||||
Operating expenses and other | 563 | 404 | 319 | 476 | 618 | 2,380 | ||||||||||||||||||
Interest | 89 | 91 | 10 | 54 | 61 | 305 | ||||||||||||||||||
Total | 4,564 | 495 | 329 | 530 | 679 | 6,597 | ||||||||||||||||||
Income (loss) before income tax | 761 | 178 | 37 | 26 | (219 | ) | 783 | |||||||||||||||||
Income tax (expense) benefit | (141 | ) | (46 | ) | (12 | ) | (5 | ) | 42 | (162 | ) | |||||||||||||
Net income (loss) | 620 | 132 | 25 | 21 | (177 | ) | 621 | |||||||||||||||||
Amounts attributable to noncontrolling interests | (66 | ) | 88 | 22 | ||||||||||||||||||||
Net income (loss) attributable to Loews Corporation | $ | 554 | $ | 132 | $ | 25 | $ | 21 | $ | (89 | ) | $ | 643 |
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Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(In millions, except per share data) | ||||||||||||||||
CNA Financial | $ | 249 | $ | 240 | $ | 554 | $ | 501 | ||||||||
Diamond Offshore | (52 | ) | (37 | ) | (89 | ) | (27 | ) | ||||||||
Boardwalk Pipelines | 53 | 16 | 132 | 52 | ||||||||||||
Loews Hotels & Co | 12 | 17 | 25 | 30 | ||||||||||||
Corporate | (13 | ) | (6 | ) | 21 | (33 | ) | |||||||||
Net income attributable to Loews Corporation | $ | 249 | $ | 230 | $ | 643 | $ | 523 | ||||||||
Basic net income per share | $ | 0.82 | $ | 0.72 | $ | 2.10 | $ | 1.62 | ||||||||
Diluted net income per share | $ | 0.82 | $ | 0.72 | $ | 2.09 | $ | 1.61 | ||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(In millions, except per share data) | ||||||||||||||||
CNA Financial | $ | 135 | $ | 249 | $ | 80 | $ | 554 | ||||||||
Boardwalk Pipelines | 34 | 53 | 99 | 132 | ||||||||||||
Loews Hotels & Co | (72 | ) | 12 | (97 | ) | 25 | ||||||||||
Corporate | (908 | ) | (13 | ) | (1,073 | ) | 21 | |||||||||
Diamond Offshore (a) | (24 | ) | (52 | ) | (476 | ) | (89 | ) | ||||||||
Net income (loss) attributable to Loews Corporation | $ | (835 | ) | $ | 249 | $ | (1,467 | ) | $ | 643 | ||||||
Basic net income (loss) per share | $ | (2.96 | ) | $ | 0.82 | $ | (5.16 | ) | $ | 2.10 | ||||||
Diluted net income (loss) per share | $ | (2.96 | ) | $ | 0.82 | $ | (5.16 | ) | $ | 2.09 |
(a) | Amounts presented for Diamond Offshore reflect the periods prior to deconsolidation. See Notes 2 and 14 of the Notes to the Consolidated Condensed Financial Statements included under Item 1. |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | June 30, | June 30, | |||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Insurance premiums | $ | 1,824 | $ | 1,815 | $ | 3,627 | $ | 3,600 | $ | 1,850 | $ | 1,824 | $ | 3,719 | $ | 3,627 | ||||||||||||||||
Net investment income | 515 | 506 | 1,086 | 996 | 534 | 515 | 863 | 1,086 | ||||||||||||||||||||||||
Investment gains (losses) | 2 | (3 | ) | 33 | 6 | 69 | 2 | (147 | ) | 33 | ||||||||||||||||||||||
Non-insurance warranty revenue | 285 | 248 | 566 | 486 | 308 | 285 | 609 | 566 | ||||||||||||||||||||||||
Other revenues | 4 | 8 | 13 | 21 | 5 | 4 | 13 | 13 | ||||||||||||||||||||||||
Total | 2,630 | 2,574 | 5,325 | 5,109 | 2,766 | 2,630 | 5,057 | 5,325 | ||||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||
Insurance claims and policyholders’ benefits | 1,352 | 1,327 | 2,709 | 2,666 | 1,642 | 1,352 | 3,067 | 2,709 | ||||||||||||||||||||||||
Amortization of deferred acquisition costs | 338 | 359 | 680 | 655 | 342 | 338 | 686 | 680 | ||||||||||||||||||||||||
Non-insurance warranty expense | 263 | 225 | 523 | 441 | 285 | 263 | 566 | 523 | ||||||||||||||||||||||||
Other operating expenses | 279 | 299 | 563 | 601 | 283 | 279 | 583 | 563 | ||||||||||||||||||||||||
Interest | 55 | 35 | 89 | 70 | 31 | 55 | 62 | 89 | ||||||||||||||||||||||||
Total | 2,287 | 2,245 | 4,564 | 4,433 | 2,583 | 2,287 | 4,964 | 4,564 | ||||||||||||||||||||||||
Income before income tax | 343 | 329 | 761 | 676 | 183 | 343 | 93 | 761 | ||||||||||||||||||||||||
Income tax expense | (64 | ) | (60 | ) | (141 | ) | (115 | ) | (32 | ) | (64 | ) | (4 | ) | (141 | ) | ||||||||||||||||
Net income | 279 | 269 | 620 | 561 | 151 | 279 | 89 | 620 | ||||||||||||||||||||||||
Amounts attributable to noncontrolling interests | (30 | ) | (29 | ) | (66 | ) | (60 | ) | (16 | ) | (30 | ) | (9 | ) | (66 | ) | ||||||||||||||||
Net income attributable to Loews Corporation | $ | 249 | $ | 240 | $ | 554 | $ | 501 | $ | 135 | $ | 249 | $ | 80 | $ | 554 | ||||||||||||||||
Three Months Ended June 30, 2019 | Specialty | Commercial | International | Total | |||||||||||||
(In millions, except %) | |||||||||||||||||
Net written premiums | $ | 713 | $ | 912 | $ | 249 | $ | 1,874 | |||||||||
Net earned premiums | 688 | 763 | 243 | 1,694 | |||||||||||||
Net investment income | 134 | 154 | 15 | 303 | |||||||||||||
Core income | 161 | 120 | 17 | 298 | |||||||||||||
Other performance metrics: | |||||||||||||||||
Loss and loss adjustment expense ratio | 57.4 | % | 66.5 | % | 60.2 | % | 61.9 | % | |||||||||
Expense ratio | 33.1 | 32.6 | 37.3 | 33.4 | |||||||||||||
Dividend ratio | 0.2 | 0.6 | 0.4 | ||||||||||||||
Combined ratio | 90.7 | % | 99.7 | % | 97.5 | % | 95.7 | % | |||||||||
Rate | 4 | % | 3 | % | 7 | % | 4 | % | |||||||||
Renewal premium change | 5 | 5 | 8 | 5 | |||||||||||||
Retention | 88 | 85 | 67 | 83 | |||||||||||||
New business | $ | 97 | $ | 186 | $ | 75 | $ | 358 | |||||||||
Three Months Ended June 30, 2018 | |||||||||||||||||
Net written premiums | $ | 688 | $ | 810 | $ | 271 | $ | 1,769 | |||||||||
Net earned premiums | 683 | 753 | 248 | 1,684 | |||||||||||||
Net investment income | 130 | 157 | 15 | 302 | |||||||||||||
Core income (loss) | 183 | 143 | (7 | ) | 319 | ||||||||||||
Other performance metrics: | |||||||||||||||||
Loss and loss adjustment expense ratio | 54.6 | % | 62.4 | % | 66.8 | % | 59.9 | % | |||||||||
Expense ratio | 32.0 | 33.5 | 37.9 | 33.5 | |||||||||||||
Dividend ratio | 0.2 | 0.7 | 0.4 | ||||||||||||||
Combined ratio | 86.8 | % | 96.6 | % | 104.7 | % | 93.8 | % | |||||||||
Rate | 2 | % | 1 | % | 3 | % | 1 | % | |||||||||
Renewal premium change | 5 | 4 | 5 | 4 | |||||||||||||
Retention | 83 | 86 | 77 | 83 | |||||||||||||
New business | $ | 93 | $ | 157 | $ | 82 | $ | 332 |
Three Months Ended June 30, 2020 | Specialty | Commercial | International | Total | ||||||||||||
(In millions, except %) | ||||||||||||||||
Gross written premiums | $ | 1,762 | $ | 1,126 | $ | 277 | $ | 3,165 | ||||||||
Gross written premiums excluding third | ||||||||||||||||
party captives | 811 | 1,044 | 277 | 2,132 | ||||||||||||
Net written premiums | 742 | 949 | 239 | 1,930 | ||||||||||||
Net earned premiums | 705 | 795 | 224 | 1,724 | ||||||||||||
Net investment income | 133 | 177 | 14 | 324 | ||||||||||||
Core income (loss) | 90 | 20 | (14 | ) | 96 | |||||||||||
Other performance metrics: | ||||||||||||||||
Loss ratio excluding catastrophes | ||||||||||||||||
and development | 59.9 | % | 59.0 | % | 59.9 | % | 59.5 | % | ||||||||
Effect of catastrophe impacts | 15.0 | 19.0 | 19.9 | 17.5 | ||||||||||||
Effect of development-related items | (2.9 | ) | 6.0 | (1.2 | ) | 1.4 | ||||||||||
Loss ratio | 72.0 | % | 84.0 | % | 78.6 | % | 78.4 | % | ||||||||
Expense ratio | 32.0 | 33.9 | 36.7 | 33.6 | ||||||||||||
Dividend ratio | 0.2 | 0.6 | 0.3 | |||||||||||||
Combined ratio | 104.2 | % | 118.5 | % | 115.3 | % | 112.3 | % | ||||||||
Combined ratio excluding catastrophes | ||||||||||||||||
and development | 92.1 | % | 93.5 | % | 96.6 | % | 93.4 | % | ||||||||
Rate | 12 | % | 9 | % | 13 | % | 11 | % | ||||||||
Renewal premium change | 11 | 8 | 11 | 9 | ||||||||||||
Retention | 85 | 83 | 74 | 83 | ||||||||||||
New business | $ | 96 | $ | 205 | $ | 62 | $ | 363 |
Three Months Ended June 30, 2019 | ||||||||||||||||
Gross written premiums | $ | 1,724 | $ | 1,024 | $ | 287 | $ | 3,035 | ||||||||
Gross written premiums excluding third | ||||||||||||||||
party captives | 755 | 958 | 287 | 2,000 | ||||||||||||
Net written premiums | 713 | 912 | 249 | 1,874 | ||||||||||||
Net earned premiums | 688 | 763 | 243 | 1,694 | ||||||||||||
Net investment income | 134 | 154 | 15 | 303 | ||||||||||||
Core income | 161 | 120 | 17 | 298 | ||||||||||||
Other performance metrics: | ||||||||||||||||
Loss ratio excluding catastrophes | ||||||||||||||||
and development | 59.9 | % | 61.7 | % | 60.1 | % | 60.8 | % | ||||||||
Effect of catastrophe impacts | 0.1 | 4.9 | 0.2 | 2.2 | ||||||||||||
Effect of development-related items | (2.6 | ) | (0.1 | ) | (0.1 | ) | (1.1 | ) | ||||||||
Loss ratio | 57.4 | % | 66.5 | % | 60.2 | % | 61.9 | % | ||||||||
Expense ratio | 33.1 | 32.6 | 37.3 | 33.4 | ||||||||||||
Dividend ratio | 0.2 | 0.6 | 0.4 | |||||||||||||
Combined ratio | 90.7 | % | 99.7 | % | 97.5 | % | 95.7 | % | ||||||||
Combined ratio excluding catastrophes | ||||||||||||||||
and development | 93.2 | % | 94.9 | % | 97.4 | % | 94.6 | % | ||||||||
Rate | 4 | % | 3 | % | 7 | % | 4 | % | ||||||||
Renewal premium change | 5 | 5 | 8 | 6 | ||||||||||||
Retention | 89 | 87 | 70 | 84 | ||||||||||||
New business | $ | 97 | $ | 186 | $ | 75 | $ | 358 |
Six Months Ended June 30, 2020 | Specialty | Commercial | International | Total | ||||||||||||
(In millions, except %) | ||||||||||||||||
Gross written premiums | $ | 3,476 | $ | 2,188 | $ | 584 | $ | 6,248 | ||||||||
Gross written premiums excluding third | ||||||||||||||||
party captives | 1,552 | 2,103 | 584 | 4,239 | ||||||||||||
Net written premiums | 1,436 | 1,899 | 458 | 3,793 | ||||||||||||
Net earned premiums | 1,390 | 1,613 | 463 | 3,466 | ||||||||||||
Net investment income | 189 | 224 | 29 | 442 | ||||||||||||
Core income (loss) | 186 | 44 | (12 | ) | 218 | |||||||||||
Other performance metrics: | ||||||||||||||||
Loss ratio excluding catastrophes | ||||||||||||||||
and development | 59.7 | % | 60.1 | % | 60.1 | % | 59.9 | % | ||||||||
Effect of catastrophe impacts | 8.2 | 12.8 | 11.9 | 10.9 | ||||||||||||
Effect of development-related items | (2.3 | ) | 3.0 | (0.7 | ) | 0.4 | ||||||||||
Loss ratio | 65.6 | % | 75.9 | % | 71.3 | % | 71.2 | % | ||||||||
Expense ratio | 32.1 | 33.6 | 36.1 | 33.2 | ||||||||||||
Dividend ratio | 0.2 | 0.6 | 0.4 | |||||||||||||
Combined ratio | 97.9 | % | 110.1 | % | 107.4 | % | 104.8 | % | ||||||||
Combined ratio excluding catastrophes | ||||||||||||||||
and development | 92.0 | % | 94.3 | % | 96.2 | % | 93.5 | % | ||||||||
Rate | 10 | % | 9 | % | 11 | % | 10 | % | ||||||||
Renewal premium change | 10 | 8 | 9 | 9 | ||||||||||||
Retention | 85 | 84 | 72 | 82 | ||||||||||||
New business | $ | 170 | $ | 403 | $ | 130 | $ | 703 |
Six Months Ended June 30, 2019 | ||||||||||||||||
Gross written premiums | $ | 3,425 | $ | 1,965 | $ | 611 | $ | 6,001 | ||||||||
Gross written premiums excluding third | ||||||||||||||||
party captives | 1,485 | 1,891 | 611 | 3,987 | ||||||||||||
Net written premiums | 1,411 | 1,761 | 508 | 3,680 | ||||||||||||
Net earned premiums | 1,349 | 1,526 | 493 | 3,368 | ||||||||||||
Net investment income | 289 | 344 | 30 | 663 | ||||||||||||
Core income | 330 | 259 | 23 | 612 | ||||||||||||
Other performance metrics: | ||||||||||||||||
Loss ratio excluding catastrophes | ||||||||||||||||
and development | 60.2 | % | 61.9 | % | 58.5 | % | 60.7 | % | ||||||||
Effect of catastrophe impacts | 1.0 | 5.1 | 1.3 | 2.9 | ||||||||||||
Effect of development-related items | (2.9 | ) | (0.3 | ) | 2.7 | (0.9 | ) | |||||||||
Loss ratio | 58.3 | % | 66.7 | % | 62.5 | % | 62.7 | % | ||||||||
Expense ratio | 33.0 | 33.2 | 37.2 | 33.7 | ||||||||||||
Dividend ratio | 0.2 | 0.6 | 0.4 | |||||||||||||
Combined ratio | 91.5 | % | 100.5 | % | 99.7 | % | 96.8 | % | ||||||||
Combined ratio excluding catastrophes | ||||||||||||||||
and development | 93.4 | % | 95.7 | % | 95.7 | % | 94.8 | % | ||||||||
Rate | 3 | % | 3 | % | 6 | % | 4 | % | ||||||||
Renewal premium change | 6 | 5 | 4 | 5 | ||||||||||||
Retention | 89 | 86 | 69 | 84 | ||||||||||||
New business | $ | 182 | $ | 350 | $ | 155 | $ | 687 |
Six Months Ended June 30, 2019 | Specialty | Commercial | International | Total | |||||||||||||
(In millions, except %) | |||||||||||||||||
Net written premiums | $ | 1,411 | $ | 1,761 | $ | 508 | $ | 3,680 | |||||||||
Net earned premiums | 1,349 | 1,526 | 493 | 3,368 | |||||||||||||
Net investment income | 289 | 344 | 30 | 663 | |||||||||||||
Core income | 330 | 259 | 23 | 612 | |||||||||||||
Other performance metrics: | |||||||||||||||||
Loss and loss adjustment expense ratio | 58.3 | % | 66.7 | % | 62.5 | % | 62.7 | % | |||||||||
Expense ratio | 33.0 | 33.2 | 37.2 | 33.7 | |||||||||||||
Dividend ratio | 0.2 | 0.6 | 0.4 | ||||||||||||||
Combined ratio | 91.5 | % | 100.5 | % | 99.7 | % | 96.8 | % | |||||||||
Rate | 4 | % | 2 | % | 6 | % | 3 | % | |||||||||
Renewal premium change | 4 | 4 | 3 | 4 | |||||||||||||
Retention | 89 | 85 | 67 | 83 | |||||||||||||
New business | $ | 183 | $ | 350 | $ | 155 | $ | 688 | |||||||||
Six Months Ended June 30, 2018 | |||||||||||||||||
Net written premiums | $ | 1,374 | $ | 1,642 | $ | 566 | $ | 3,582 | |||||||||
Net earned premiums | 1,355 | 1,496 | 484 | 3,335 | |||||||||||||
Net investment income | 252 | 306 | 29 | 587 | |||||||||||||
Core income | 354 | 276 | 16 | 646 | |||||||||||||
Other performance metrics: | |||||||||||||||||
Loss and loss adjustment expense ratio | 55.4 | % | 62.7 | % | 63.7 | % | 59.9 | % | |||||||||
Expense ratio | 31.6 | 33.4 | 37.1 | 33.2 | |||||||||||||
Dividend ratio | 0.2 | 0.7 | 0.4 | ||||||||||||||
Combined ratio | 87.2 | % | 96.8 | % | 100.8 | % | 93.5 | % | |||||||||
Rate | 2 | % | 1 | % | 3 | % | 2 | % | |||||||||
Renewal premium change | 5 | 5 | 5 | 5 | |||||||||||||
Retention | 84 | 85 | 81 | 84 | |||||||||||||
New business | $ | 173 | $ | 339 | $ | 175 | $ | 687 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(In millions) | ||||||||||||||||
Net earned premiums | $ | 130 | $ | 131 | $ | 260 | $ | 265 | ||||||||
Net investment income | 212 | 204 | 423 | 409 | ||||||||||||
Core loss | (4 | ) | (49 | ) | - | (95 | ) |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(In millions) | ||||||||||||||||
Net earned premiums | $ | 126 | $ | 130 | $ | 253 | $ | 260 | ||||||||
Net investment income | 210 | 212 | 421 | 423 | ||||||||||||
Core income (loss) | 3 | (4 | ) | (11 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(In millions) | ||||||||||||||||
Core income (loss): | ||||||||||||||||
Property & Casualty Operations | $ | 298 | $ | 319 | $ | 612 | $ | 646 | ||||||||
Other Insurance Operations | (4 | ) | (49 | ) | (95 | ) | ||||||||||
Total core income | 294 | 270 | 612 | 551 | ||||||||||||
Investment gains (losses) (after tax) | 1 | (1 | ) | 24 | 7 | |||||||||||
Consolidating adjustments including purchase accounting and noncontrolling interests | (46 | ) | (29 | ) | (82 | ) | (57 | ) | ||||||||
Net income attributable to Loews Corporation | $ | 249 | $ | 240 | $ | 554 | $ | 501 | ||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(In millions) | ||||||||||||||||
Core income (loss): | ||||||||||||||||
Property & Casualty Operations | $ | 96 | $ | 298 | $ | 218 | $ | 612 | ||||||||
Other Insurance Operations | 3 | (4 | ) | (11 | ) | |||||||||||
Total core income | 99 | 294 | 207 | 612 | ||||||||||||
Investment gains (losses) | 53 | 1 | (117 | ) | 24 | |||||||||||
Consolidating adjustments including noncontrolling | ||||||||||||||||
interests | (17 | ) | (46 | ) | (10 | ) | (82 | ) | ||||||||
Net income attributable to Loews Corporation | $ | 135 | $ | 249 | $ | 80 | $ | 554 |
● | Boardwalk Pipelines’ business has not been significantly impacted by the recent volatility in commodity prices. However, some of its customers are directly impacted by changes in commodity prices, which may impact Boardwalk Pipelines’ ability to renew contracts at existing terms or may impact the customers’ ability to make payment for the services Boardwalk Pipelines provides. The COVID-19 pandemic and decreased energy prices could cause a disruption of the normal operations of many of Boardwalk Pipelines’ customers, including the temporary closure or reduction of plant operations or shut-in of production. While energy prices remain volatile, prices have somewhat improved from the level that they were during portions of the first and second quarters. If energy prices remain at current levels for a sustained period of time or decline again, Boardwalk Pipelines could be exposed to increased credit risk or the increased risk of customers filing for bankruptcy protection. During 2020, Boardwalk Pipelines has not had any significant customers declare bankruptcy. |
● | Through the date of this Report, Boardwalk Pipelines has not experienced any significant operational disruptions and its pipeline throughput has remained stable. For the six months ended June 30, 2020, Boardwalk Pipelines transported approximately 1.5 trillion cubic feet of natural gas and approximately 44.3 million barrels of natural gas liquids and hydrocarbons (“NGLs”), an increase in excess of 7% from the comparable period in 2019 for each commodity. Boardwalk Pipelines’ results of operations for the second quarter of 2020 have not been materially impacted as a result of the COVID-19 pandemic or the volatility in energy prices. |
● | Boardwalk Pipelines did not experience any significant changes in its workforce composition and was able to implement its business continuity plans with no significant impact to its ability to maintain its operations. Boardwalk Pipelines continues to maintain strong physical and cybersecurity measures in order to both serve its operational needs with a remote workforce and keep its integrated pipeline and storage systems running to provide reliable service to its customers. |
● | Through the date of this Report, Boardwalk Pipelines’ balance sheet remains strong and it continues to have sufficient liquidity and it expects to continue to fund its operations through its operating cash flows. Boardwalk Pipelines has approximately $1.2 billion of available borrowing capacity under its revolving credit facility and does not have any debt maturities until February of 2021. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(In millions) | ||||||||||||||||
Revenues: | ||||||||||||||||
Net investment income | $ | 2 | $ | 2 | $ | 4 | $ | 4 | ||||||||
Contract drilling revenues | 207 | 265 | 434 | 553 | ||||||||||||
Other revenues | 15 | 4 | 22 | 13 | ||||||||||||
Total | 224 | 271 | 460 | 570 | ||||||||||||
Expenses: | ||||||||||||||||
Contract drilling expenses | 225 | 189 | 392 | 374 | ||||||||||||
Other operating expenses | ||||||||||||||||
Impairment of assets | 27 | 27 | ||||||||||||||
Other expenses | 110 | 104 | 226 | 215 | ||||||||||||
Interest | 31 | 30 | 61 | 58 | ||||||||||||
Total | 366 | 350 | 679 | 674 | ||||||||||||
Loss before income tax | (142 | ) | (79 | ) | (219 | ) | (104) | |||||||||
Income tax benefit | 36 | 10 | 42 | 54 | ||||||||||||
Amounts attributable to noncontrolling interests | 54 | 32 | 88 | 23 | ||||||||||||
Net loss attributable to Loews Corporation | $ | (52 | ) | $ | (37 | ) | $ | (89 | ) | $ (27) | ||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | June 30, | June 30, | |||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Other revenue, primarily operating | $ 327 | $ 285 | $ 673 | $ 622 | ||||||||||||||||||||||||||||
Operating revenues and other | $ | 296 | $ | 327 | $ | 637 | $ | 673 | ||||||||||||||||||||||||
Total | 327 | 285 | 673 | 622 | 296 | 327 | 637 | 673 | ||||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||
Operating | 209 | 203 | 404 | 401 | ||||||||||||||||||||||||||||
Operating and other | 210 | 209 | 421 | 404 | ||||||||||||||||||||||||||||
Interest | 46 | 43 | 91 | 87 | 41 | 46 | 83 | 91 | ||||||||||||||||||||||||
Total | 255 | 246 | 495 | 488 | 251 | 255 | 504 | 495 | ||||||||||||||||||||||||
Income before income tax | 72 | 39 | 178 | 134 | 45 | 72 | 133 | 178 | ||||||||||||||||||||||||
Income tax expense | (19 | ) | (2 | ) | (46 | ) | (14 | ) | (11 | ) | (19 | ) | (34 | ) | (46 | ) | ||||||||||||||||
Amounts attributable to noncontrolling interests | (21 | ) | (68 | ) | ||||||||||||||||||||||||||||
Net income attributable to Loews Corporation | $ 53 | $ 16 | $ 132 | $ 52 | $ | 34 | $ | 53 | $ | 99 | $ | 132 | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | June 30, | June 30, | |||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Operating revenue | $ 159 | $ 171 | $ 310 | $ 324 | $ | 9 | $ | 159 | $ | 118 | $ | 310 | ||||||||||||||||||||
Gain on sale of hotel | 13 | 13 | ||||||||||||||||||||||||||||||
Revenues related to reimbursable expenses | 27 | 30 | 56 | 60 | 12 | 27 | 45 | 56 | ||||||||||||||||||||||||
Total | 186 | 201 | 366 | 384 | 34 | 186 | 176 | 366 | ||||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||
Operating and other: | ||||||||||||||||||||||||||||||||
Operating | 137 | 139 | 270 | 270 | 50 | 130 | 166 | 260 | ||||||||||||||||||||||||
Asset impairments | 20 | 7 | 20 | 10 | ||||||||||||||||||||||||||||
Reimbursable expenses | 27 | 30 | 56 | 60 | 12 | 27 | 45 | 56 | ||||||||||||||||||||||||
Depreciation | 15 | 16 | 31 | 33 | 16 | 15 | 30 | 31 | ||||||||||||||||||||||||
Equity income from joint ventures | (16 | ) | (16 | ) | (38 | ) | (38 | ) | ||||||||||||||||||||||||
Equity (income) loss from joint ventures | 25 | (16 | ) | 29 | (38 | ) | ||||||||||||||||||||||||||
Interest | 5 | 8 | 10 | 15 | 8 | 5 | 16 | 10 | ||||||||||||||||||||||||
Total | 168 | 177 | 329 | 340 | 131 | 168 | 306 | 329 | ||||||||||||||||||||||||
Income before income tax | 18 | 24 | 37 | 44 | ||||||||||||||||||||||||||||
Income tax expense | (6 | ) | (7 | ) | (12 | ) | (14 | ) | ||||||||||||||||||||||||
Net income attributable to Loews Corporation | $ 12 | $ 17 | $ 25 | $ 30 | ||||||||||||||||||||||||||||
Income (loss) before income tax | (97 | ) | 18 | (130 | ) | 37 | ||||||||||||||||||||||||||
Income tax (expense) benefit | 25 | (6 | ) | 33 | (12 | ) | ||||||||||||||||||||||||||
Net income (loss) attributable to Loews Corporation | $ | (72 | ) | $ | 12 | $ | (97 | ) | $ | 25 |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | June 30, | June 30, | |||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Net investment income | $ 33 | $ 42 | $ 117 | $ 56 | ||||||||||||||||||||||||||||
Other revenues | 223 | 217 | 439 | 430 | ||||||||||||||||||||||||||||
Net investment income (loss) | $ | 110 | $ | 33 | $ | (56 | ) | $ | 117 | |||||||||||||||||||||||
Investment loss | (1,211 | ) | (1,211 | ) | ||||||||||||||||||||||||||||
Operating revenues and other | 244 | 223 | 501 | 439 | ||||||||||||||||||||||||||||
Total | 256 | 259 | 556 | 486 | (857 | ) | 256 | (766 | ) | 556 | ||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||
Operating and other | 245 | 238 | 476 | 470 | 260 | 245 | 528 | 476 | ||||||||||||||||||||||||
Interest | 27 | 27 | 54 | 54 | 32 | 27 | 63 | 54 | ||||||||||||||||||||||||
Total | 272 | 265 | 530 | 524 | 292 | 272 | 591 | 530 | ||||||||||||||||||||||||
Income (loss) before income tax | (16 | ) | (6 | ) | 26 | (38 | ) | (1,149 | ) | (16 | ) | (1,357 | ) | 26 | ||||||||||||||||||
Income tax (expense) benefit | 3 | (5 | ) | 5 | 241 | 3 | 284 | (5 | ) | |||||||||||||||||||||||
Net income (loss) attributable to Loews Corporation | $ (13 | ) | $ (6 | ) | $ 21 | $ (33 | ) | $ | (908 | ) | $ | (13 | ) | $ | (1,073 | ) | $ | 21 | ||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(In millions) | ||||||||||||||||
Fixed income securities: | ||||||||||||||||
Taxable fixed income securities | $ 385 | $ 354 | $ 768 | $ 704 | ||||||||||||
Tax-exempt fixed income securities | 80 | 100 | 162 | 205 | ||||||||||||
Total fixed income securities | 465 | 454 | 930 | 909 | ||||||||||||
Limited partnership and common stock investments | 43 | 42 | 139 | 73 | ||||||||||||
Other, net of investment expense | 7 | 10 | 17 | 14 | ||||||||||||
Pretax net investment income | $ 515 | $ 506 | $ 1,086 | $ 996 | ||||||||||||
Fixed income securities after tax and noncontrolling interests | $ 341 | $ 335 | $ 681 | $ 672 | ||||||||||||
Net investment income after tax and noncontrolling interests | $ 376 | $ 372 | $ 791 | $ 734 | ||||||||||||
Effective income yield for the fixed income securities portfolio, before tax | 4.8 | % | 4.7 | % | 4.8 | % | 4.7 | % | ||||||||
Effective income yield for the fixed income securities portfolio, after tax | 3.9 | % | 3.9 | % | 3.9 | % | 3.9 | % | ||||||||
Limited partnership and common stock return | 2.1 | % | 1.8 | % | 6.8 | % | 3.0 | % |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(In millions) | ||||||||||||||||
Fixed income securities: | ||||||||||||||||
Taxable fixed income securities | $ | 360 | $ | 385 | $ | 731 | $ | 768 | ||||||||
Tax-exempt fixed income securities | 80 | 80 | 158 | 162 | ||||||||||||
Total fixed income securities | 440 | 465 | 889 | 930 | ||||||||||||
Limited partnership investments | 44 | 37 | (26 | ) | 113 | |||||||||||
Common stock | 40 | 6 | (15 | ) | 26 | |||||||||||
Other, net of investment expense | 10 | 7 | 15 | 17 | ||||||||||||
Pretax net investment income | $ | 534 | $ | 515 | $ | 863 | $ | 1,086 | ||||||||
Fixed income securities after tax and noncontrolling interests | $ | 323 | $ | 341 | $ | 651 | $ | 681 | ||||||||
Net investment income after tax and noncontrolling interests | $ | 385 | $ | 376 | $ | 634 | $ | 791 |
Effective income yield for the fixed income securities | ||||||||||||||||
portfolio, before tax | 4.6 | % | 4.8 | % | 4.6 | % | 4.8 | % | ||||||||
Effective income yield for the fixed income securities | ||||||||||||||||
portfolio, after tax | 3.8 | % | 3.9 | % | 3.8 | % | 3.9 | % | ||||||||
Limited partnership and common stock return | 5.0 | % | 2.1 | % | (2.3 | )% | 6.8 | % |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | June 30, | June 30, | |||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Investment gains (losses): | ||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||
Corporate and other bonds | $ (7 | ) | $ 9 | $ (7 | ) | $ 28 | $ | (40 | ) | $ | (7 | ) | $ | (119 | ) | $ | (7 | ) | ||||||||||||||
States, municipalities and political subdivisions | 4 | 6 | 12 | 26 | 33 | 4 | 33 | 12 | ||||||||||||||||||||||||
Asset-backed | (11 | ) | (14 | ) | (32) | 24 | 28 | (14 | ) | |||||||||||||||||||||||
Total fixed maturity securities | (3 | ) | 4 | (9 | ) | 22 | 17 | (3 | ) | (58 | ) | (9 | ) | |||||||||||||||||||
Non-redeemable preferred stock | 11 | (10 | ) | 53 | (25) | 63 | 11 | (70 | ) | 53 | ||||||||||||||||||||||
Short term and other | (6 | ) | 3 | (11 | ) | 9 | (11 | ) | (6 | ) | (19 | ) | (11 | ) | ||||||||||||||||||
Total investment gains (losses) | 2 | (3 | ) | 33 | 6 | 69 | 2 | (147 | ) | 33 | ||||||||||||||||||||||
Income tax (expense) benefit | (1 | ) | 2 | (9 | ) | 1 | (16 | ) | (1 | ) | 30 | (9 | ) | |||||||||||||||||||
Amounts attributable to noncontrolling interests | (2 | ) | (1) | (6 | ) | 12 | (2 | ) | ||||||||||||||||||||||||
Net investment gains (losses) attributable to Loews Corporation | $ 1 | $ (1 | ) | $ 22 | $ 6 | |||||||||||||||||||||||||||
Investment gains (losses) attributable to Loews Corporation | $ | 47 | $ | 1 | $ | (105 | ) | $ | 22 |
June 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||
Net | Net | |||||||||||||||||||||||||||||||
Unrealized | Unrealized | |||||||||||||||||||||||||||||||
June 30, 2019 | December 31, 2018 | Estimated | Gains | Estimated | Gains | |||||||||||||||||||||||||||
Estimated Fair Value | Net Unrealized Gains (Losses) | Estimated Fair Value | Net Unrealized Gains (Losses) | Fair Value | (Losses) | Fair Value | (Losses) | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
U.S. Government, Government agencies and Government-sponsored enterprises | $ 4,336 | $ 84 | $ 4,334 | $ (24) | ||||||||||||||||||||||||||||
U.S. Government, Government agencies and | ||||||||||||||||||||||||||||||||
Government-sponsored enterprises | $ | 3,997 | $ | 149 | $ | 4,136 | $ | 95 | ||||||||||||||||||||||||
AAA | 3,014 | 338 | 3,027 | 245 | 3,599 | 443 | 3,254 | 349 | ||||||||||||||||||||||||
AA | 6,697 | 775 | 6,510 | 512 | 6,717 | 920 | 6,663 | 801 | ||||||||||||||||||||||||
A | 8,843 | 961 | 8,768 | 527 | 9,257 | 1,218 | 9,062 | 1,051 | ||||||||||||||||||||||||
BBB | 15,984 | 1,374 | 14,205 | 274 | 16,867 | 1,742 | 16,839 | 1,684 | ||||||||||||||||||||||||
Non-investment grade | 2,765 | 84 | 2,702 | (73) | 2,338 | (38 | ) | 2,253 | 101 | |||||||||||||||||||||||
Total | $ 41,639 | $ 3,616 | $ 39,546 | $ 1,461 | $ | 42,775 | $ | 4,434 | $ | 42,207 | $ | 4,081 | ||||||||||||||||||||
June 30, 2019 | Estimated Fair Value | Gross Unrealized Losses | ||||||
(In millions) | ||||||||
U.S. Government, Government agencies and Government-sponsored enterprises | $ 256 | $ 1 | ||||||
AAA | 22 | 1 | ||||||
AA | 52 | |||||||
A | 526 | 8 | ||||||
BBB | 591 | 18 | ||||||
Non-investment grade | 753 | 29 | ||||||
Total | $ 2,200 | $ 57 | ||||||
Gross | ||||||||
Estimated | Unrealized | |||||||
June 30, 2020 | Fair Value | Losses | ||||||
(In millions) | ||||||||
U.S. Government, Government agencies and | ||||||||
Government-sponsored enterprises | $ | 7 | ||||||
AAA | 40 | $ | 1 | |||||
AA | 238 | 9 | ||||||
A | 919 | 35 | ||||||
BBB | 1,729 | 111 | ||||||
Non-investment grade | 1,139 | 116 | ||||||
Total | $ | 4,072 | $ | 272 |
June 30, 2019 | Estimated Fair Value | Gross Unrealized Losses | ||||||
(In millions) | ||||||||
Due in one year or less | $ 45 | $ 1 | ||||||
Due after one year through five years | 444 | 12 | ||||||
Due after five years through ten years | 1,477 | 27 | ||||||
Due after ten years | 234 | 17 | ||||||
Total | $ 2,200 | $ 57 |
Gross | ||||||||
Estimated | Unrealized | |||||||
June 30, 2020 | Fair Value | Losses | ||||||
(In millions) | ||||||||
Due in one year or less | $ | 158 | $ | 16 | ||||
Due after one year through five years | 1,154 | 73 | ||||||
Due after five years through ten years | 2,168 | 136 | ||||||
Due after ten years | 592 | 47 | ||||||
Total | $ | 4,072 | $ | 272 |
June 30, 2019 | December 31, 2018 | June 30, 2020 | December 31, 2019 | ||||||||||||||||||||
Estimated Fair Value | Effective Duration (Years) | Estimated Fair Value | Effective Duration (Years) | Estimated Fair Value | Effective Duration (Years) | Estimated Fair Value | Effective Duration (Years) | ||||||||||||||||
(In millions of dollars) | |||||||||||||||||||||||
Investments supporting Other Insurance Operations | $ | 17,541 | 8.9 | $ | 16,212 | 8.4 | $ | 18,370 | 8.8 | $ | 18,015 | 8.9 | |||||||||||
Other investments | 26,253 | 4.1 | 25,428 | 4.4 | 26,165 | 4.1 | 26,813 | 4.1 | |||||||||||||||
Total | $ | 43,794 | 6.0 | $ | 41,640 | 6.0 | $ | 44,535 | 6.0 | $ | 44,828 | 6.0 | |||||||||||
June 30, | December 31, | |||||||||||||||
June 30, 2019 | December 31, 2018 | 2020 | 2019 | |||||||||||||
(In millions ) | ||||||||||||||||
Short term investments: | ||||||||||||||||
Commercial paper | $ 920 | $ 705 | $ | 1,181 | ||||||||||||
U.S. Treasury securities | 295 | 185 | $ | 1,251 | 364 | |||||||||||
Other | 304 | 396 | 207 | 316 | ||||||||||||
Total short term investments | $ 1,519 | $ 1,286 | $ | 1,458 | $ | 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 of shares (or approximate dollar value) of shares that may yet be purchased under the plans or programs (in millions) | ||||||||||||
April 1, 2019 - April 30, 2019 | 1,210,073 | $ | 49.40 | N/A | N/A | |||||||||||
May 1, 2019 - May 31, 2019 | 1,731,211 | 50.88 | N/A | N/A | ||||||||||||
June 1, 2019 - June 30, 2019 | 59,880 | 53.22 | N/A | N/A |
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 of shares (or approximate dollar value) of shares that may yet be purchased under the plans or programs (in millions) |
April 1, 2020 - | ||||
April 30, 2020 | N/A | N/A | N/A | N/A |
May 1, 2020 - | ||||
May 31, 2020 | 200,000 | $ 28.58 | N/A | N/A |
June 1, 2020 - | ||||
June 30, 2020 | 798,380 | 33.48 | N/A | N/A |
Exhibit | ||||
Description of Exhibit | Number | |||
Number | ||||
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 |
LOEWS CORPORATION | ||||
(Registrant) | ||||
Dated: August | By: | /s/ David B. Edelson | ||
DAVID B. EDELSON | ||||
Senior Vice President and | ||||
Chief Financial Officer | ||||
(Duly authorized officer | ||||
and principal financial | ||||
officer) |