Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 13, 2015 | Jun. 30, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | CHUBB CORP | ||
Entity Central Index Key | 20171 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 230,856,872 | ||
Entity Public Float | $22,076,309,172 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues | |||
Premiums Earned | $12,328 | $12,066 | $11,838 |
Investment Income | 1,394 | 1,465 | 1,556 |
Other Revenues | 7 | 14 | 8 |
Realized Investment Gains (Losses), Net | |||
Total Other-Than-Temporary Impairment Losses on Investments | -7 | -11 | -40 |
Other-Than-Temporary Impairment Losses on Investments Recognized in Other Comprehensive Income | -5 | ||
Other Realized Investment Gains, Net | 376 | 413 | 238 |
Total Realized Investment Gains, Net | 369 | 402 | 193 |
TOTAL REVENUES | 14,098 | 13,947 | 13,595 |
Losses and Expenses | |||
Losses and Loss Expenses | 6,985 | 6,520 | 7,507 |
Amortization of Deferred Policy Acquisition Costs | 2,548 | 2,454 | 2,411 |
Other Insurance Operating Costs and Expenses | 1,397 | 1,411 | 1,362 |
Investment Expenses | 42 | 49 | 38 |
Other Expenses | 16 | 22 | 11 |
Corporate Expenses | 249 | 254 | 270 |
TOTAL LOSSES AND EXPENSES | 11,237 | 10,710 | 11,599 |
INCOME BEFORE FEDERAL AND FOREIGN INCOME TAX | 2,861 | 3,237 | 1,996 |
Federal and Foreign Income Tax | 761 | 892 | 451 |
NET INCOME | $2,100 | $2,345 | $1,545 |
Net Income Per Share | |||
Basic | $8.65 | $9.08 | $5.73 |
Diluted | $8.62 | $9.04 | $5.69 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net Income | $2,100 | $2,345 | $1,545 |
Other Comprehensive Income (Loss), Net of Tax | |||
Change in Unrealized Appreciation of Investments | 528 | -788 | 275 |
Change in Unrealized Other-Than-Temporary Impairment Losses on Investments | 2 | ||
Change in Postretirement Benefit Costs Not Yet Recognized in Net Income | -336 | 464 | -30 |
Foreign Currency Translation Losses | -117 | -72 | -11 |
Total Other Comprehensive Income (Loss) Net of Tax | 75 | -396 | 236 |
COMPREHENSIVE INCOME | $2,175 | $1,949 | $1,781 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets | ||
Short Term Investments | $1,318 | $2,114 |
Fixed Maturities (cost $36,958 and $35,959) | 38,780 | 37,091 |
Equity Securities (cost $1,089 and $1,057) | 1,964 | 1,810 |
Other Invested Assets | 1,423 | 1,598 |
TOTAL INVESTED ASSETS | 43,485 | 42,613 |
Cash | 47 | 52 |
Accrued Investment Income | 410 | 418 |
Premiums Receivable | 2,560 | 2,284 |
Reinsurance Recoverable on Unpaid Losses and Loss Expenses | 1,639 | 1,802 |
Prepaid Reinsurance Premiums | 256 | 290 |
Deferred Policy Acquisition Costs | 1,284 | 1,255 |
Deferred Income Tax | 47 | |
Goodwill | 467 | 467 |
Other Assets | 1,138 | 1,205 |
TOTAL ASSETS | 51,286 | 50,433 |
Liabilities | ||
Unpaid Losses and Loss Expenses | 22,678 | 23,146 |
Unearned Premiums | 6,581 | 6,423 |
Long Term Debt | 3,300 | 3,300 |
Dividend Payable to Shareholders | 117 | 110 |
Deferred Income Tax | 15 | |
Accrued Expenses and Other Liabilities | 2,299 | 1,357 |
TOTAL LIABILITIES | 34,990 | 34,336 |
Commitments and Contingent Liabilities (Notes 5 and 12) | ||
Shareholders' Equity | ||
Preferred Stock - Authorized 8,000,000 Shares; $1 Par Value; Issued - None | ||
Common Stock - Authorized 1,200,000,000 Shares; $1 Par Value; Issued 371,980,460 Shares | 372 | 372 |
Paid-In Surplus | 171 | 171 |
Retained Earnings | 23,520 | 21,902 |
Accumulated Other Comprehensive Income | 1,110 | 1,035 |
Treasury Stock, at Cost - 139,551,071 and 123,673,969 Shares | -8,877 | -7,383 |
TOTAL SHAREHOLDERS' EQUITY | 16,296 | 16,097 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $51,286 | $50,433 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, except Share data, unless otherwise specified | ||||
Statement of Financial Position [Abstract] | ||||
Fixed Maturities, cost | $36,958 | $35,959 | ||
Equity Securities, cost | $1,089 | $1,057 | ||
Preferred Stock, Shares Authorized | 8,000,000 | 8,000,000 | ||
Preferred Stock, Par Value | $1 | $1 | ||
Preferred Stock, Shares Issued | 0 | 0 | ||
Common Stock, Shares Authorized | 1,200,000,000 | 1,200,000,000 | ||
Common Stock, Par Value | $1 | $1 | ||
Common Stock, Shares Issued | 371,980,460 | 371,980,460 | ||
Treasury Stock, Shares | 139,551,071 | 123,673,969 | 110,217,445 | 99,519,509 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Preferred Stock [Member] | Common Stock [Member] | Paid-In Surplus [Member] | Retained Earnings [Member] | Unrealized Appreciation of Investments Including Unrealized Other-Than-Temporary Impairment Losses [Member] | Postretirement Benefit Costs Not Yet Recognized in Net Income [Member] | Foreign Currency Translation Gains [Member] | Accumulated Other Comprehensive Income [Member] | Treasury Stock, at Cost [Member] |
In Millions | ||||||||||
Balance, Beginning of Year at Dec. 31, 2011 | $372 | $190 | $18,903 | $1,736 | ($687) | $146 | ($5,359) | |||
Net Income | 1,545 | 1,545 | ||||||||
Repurchase of Shares | -935 | |||||||||
Changes Related to Stock-Based Employee Compensation (includes tax benefit of $17, $28 and $27) | -12 | |||||||||
Change During Year, Net of Tax | 236 | 277 | -30 | -11 | ||||||
Dividends Declared (per share $2.00, $1.76 and $1.64) | -439 | |||||||||
Shares Issued Under Stock-Based Employee Compensation Plans | 131 | |||||||||
Balance, End of Year at Dec. 31, 2012 | 15,827 | 372 | 178 | 20,009 | 2,013 | -717 | 135 | 1,431 | -6,163 | |
Net Income | 2,345 | 2,345 | ||||||||
Repurchase of Shares | -1,300 | |||||||||
Changes Related to Stock-Based Employee Compensation (includes tax benefit of $17, $28 and $27) | -7 | |||||||||
Change During Year, Net of Tax | -396 | -788 | 464 | -72 | ||||||
Dividends Declared (per share $2.00, $1.76 and $1.64) | -452 | |||||||||
Shares Issued Under Stock-Based Employee Compensation Plans | 80 | |||||||||
Balance, End of Year at Dec. 31, 2013 | 16,097 | 372 | 171 | 21,902 | 1,225 | -253 | 63 | 1,035 | -7,383 | |
Net Income | 2,100 | 2,100 | ||||||||
Repurchase of Shares | -1,555 | |||||||||
Changes Related to Stock-Based Employee Compensation (includes tax benefit of $17, $28 and $27) | ||||||||||
Change During Year, Net of Tax | 75 | 528 | -336 | -117 | ||||||
Dividends Declared (per share $2.00, $1.76 and $1.64) | -482 | |||||||||
Shares Issued Under Stock-Based Employee Compensation Plans | 61 | |||||||||
Balance, End of Year at Dec. 31, 2014 | $16,296 | $372 | $171 | $23,520 | $1,753 | ($589) | ($54) | $1,110 | ($8,877) |
Consolidated_Statements_of_Sha1
Consolidated Statements of Shareholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Paid-In Surplus [Member] | |||
Tax benefit, Stock-Based Employee Compensation | $17 | $28 | $27 |
Retained Earnings [Member] | |||
Dividends Declared Per Share | $2 | $1.76 | $1.64 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Flows from Operating Activities | |||
Net Income | $2,100 | $2,345 | $1,545 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities | |||
Increase (Decrease) in Unpaid Losses and Loss Expenses, Net | -45 | -582 | 691 |
Increase in Unearned Premiums, Net | 264 | 158 | 32 |
Amortization of Premiums and Discounts on Fixed Maturities | 196 | 183 | 163 |
Depreciation | 54 | 55 | 54 |
Realized Investment Gains, Net | -369 | -402 | -193 |
Other, Net | -47 | -26 | 7 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 2,153 | 1,731 | 2,299 |
Cash Flows from Investing Activities | |||
Proceeds from Fixed Maturities - Sales | 4,229 | 2,449 | 2,271 |
Proceeds from Fixed Maturities - Maturities, Calls and Redemptions | 4,231 | 4,909 | 4,290 |
Proceeds from Sales of Equity Securities | 213 | 545 | 160 |
Purchases of Fixed Maturities | -9,987 | -8,275 | -7,247 |
Purchases of Equity Securities | -110 | -113 | -112 |
Investments in Other Invested Assets, Net | 315 | 498 | 293 |
Decrease (Increase) in Short Term Investments, Net | 780 | 383 | -629 |
Change in Receivable or Payable from Security Transactions not Settled, Net | 222 | -86 | 45 |
Purchases of Property and Equipment, Net | -49 | -52 | -43 |
Other, Net | -6 | ||
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | -156 | 252 | -972 |
Cash Flows from Financing Activities | |||
Repayment of Long Term Debt | -275 | ||
Decrease in Funds Held under Deposit Contracts | -2 | -6 | -12 |
Proceeds from Issuance of Common Stock Under Stock-Based Employee Compensation Plans | 22 | 38 | 74 |
Repurchase of Shares | -1,547 | -1,288 | -959 |
Dividends Paid to Shareholders | -475 | -450 | -438 |
NET CASH USED IN FINANCING ACTIVITIES | -2,002 | -1,981 | -1,335 |
Net Increase (Decrease) in Cash | -5 | 2 | -8 |
Cash at Beginning of Year | 52 | 50 | 58 |
CASH AT END OF YEAR | $47 | $52 | $50 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Summary of Significant Accounting Policies | (1) Summary of Significant Accounting Policies | |
(a) | Basis of Presentation | |
The Chubb Corporation (Chubb) is a holding company with subsidiaries principally engaged in the property and casualty insurance business. The property and casualty insurance subsidiaries (the P&C Group) underwrite most lines of property and casualty insurance in the United States, Canada, Europe, Australia and parts of Latin America and Asia. The geographic distribution of property and casualty business in the United States is broad with a particularly strong market presence in the Northeast. | ||
The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and include the accounts of Chubb and its subsidiaries (collectively, the Corporation). Significant intercompany transactions have been eliminated in consolidation. The results of our operations in Australia, Brazil and other smaller foreign locations are recorded on a three month lag in our consolidated financial statements. Specific events having significant financial impact that occur during the lag period are included in the current period results. | ||
The consolidated financial statements include amounts based on informed estimates and judgments of management for transactions that are not yet complete. Such estimates and judgments affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||
Certain amounts in the consolidated financial statements for prior years have been reclassified to conform with the 2014 presentation. | ||
(b) | Invested Assets | |
Short term investments, which have an original maturity of one year or less, are carried at amortized cost, which approximates fair value. | ||
Fixed maturities, which include taxable and tax exempt bonds, are classified as available-for-sale and carried at fair value as of the balance sheet date. Taxable bonds include U.S. government and government agency and authority obligations, including taxable bonds issued by states, municipalities and political subdivisions within the United States, and foreign government and government agency obligations, corporate bonds and mortgage-backed securities. Corporate bonds include redeemable preferred stocks. Tax exempt bonds consist of bonds issued by states, municipalities and political subdivisions within the United States. Fixed maturities are purchased to support the investment strategies of the Corporation. These strategies are developed based on many factors including rate of return, maturity, credit risk, tax considerations and regulatory requirements. Fixed maturities may be sold prior to maturity to support the investment strategies of the Corporation. | ||
Premiums and discounts arising from the purchase of fixed maturities are amortized using the interest method over the estimated remaining term of the securities. For mortgage-backed securities, prepayment assumptions are reviewed periodically and revised as necessary. | ||
Equity securities, which include common stocks and non-redeemable preferred stocks, are carried at fair value as of the balance sheet date. | ||
Unrealized appreciation or depreciation, including unrealized other-than-temporary impairment losses, of fixed maturities and equity securities carried at fair value is excluded from net income and is included, net of applicable deferred income tax, in other comprehensive income. | ||
Other invested assets primarily include private equity limited partnerships, which are carried at the Corporation’s equity in the net assets of the partnerships based on valuations provided by the manager of each partnership. As a result of the timing of the receipt of valuation data from the investment managers, these investments are generally reported on a three month lag. Changes in the Corporation’s equity in the net assets of the partnerships are included in net income as realized investment gains or losses. Other invested assets also include warrants, which are carried at fair value as of the balance sheet date. Changes in the fair value of warrants are included in net income as realized investment gains or losses. | ||
Realized gains and losses on the sale of investments are determined on the basis of the cost of the specific investments sold and are included in net income. | ||
When the fair value of an investment is lower than its cost, an assessment is made to determine whether the decline is temporary or other than temporary. The assessment of other-than-temporary impairment of fixed maturities and equity securities is based on both quantitative criteria and qualitative information. A number of factors are considered including, but not limited to, the length of time and the extent to which the fair value has been less than the cost, the financial condition and near term prospects of the issuer, whether the issuer is current on contractually obligated interest and principal payments, general market conditions and industry or sector specific factors. | ||
In determining whether fixed maturities are other than temporarily impaired, the Corporation is required to recognize an other-than-temporary impairment loss when it concludes it has the intent to sell or it is more likely than not it will be required to sell an impaired fixed maturity before the security recovers to its amortized cost value or it is likely it will not recover the entire amortized cost value of an impaired security. If the Corporation has the intent to sell or it is more likely than not that the Corporation will be required to sell an impaired fixed maturity before the security recovers to its amortized cost value, the security is written down to fair value and the entire amount of the writedown is included in net income as a realized investment loss. For all other impaired fixed maturities, when the impairment is determined to be other than temporary, the impairment loss is separated into the amount representing the credit loss and the amount representing the loss related to all other factors. The amount of the impairment loss that represents the credit loss is included in net income as a realized investment loss and the amount of the impairment loss that relates to all other factors is included in other comprehensive income. | ||
For fixed maturities, the split between the amount of other-than-temporary impairment losses that represents credit losses and the amount that relates to all other factors is principally based on assumptions regarding the amount and timing of projected cash flows. For fixed maturities other than mortgage-backed securities, cash flow estimates are based on assumptions regarding the probability of default and estimates regarding the timing and amount of recoveries associated with a default. For mortgage-backed securities, cash flow estimates are based on assumptions regarding future prepayment rates, default rates, loss severity and timing of recoveries. The Corporation has developed the estimates of projected cash flows using information based on historical market data, industry analyst reports and forecasts and other data relevant to the collectibility of a security. | ||
In determining whether equity securities are other than temporarily impaired, the Corporation considers its intent and ability to hold a security for a period of time sufficient to allow for the recovery of cost. If the decline in the fair value of an equity security is deemed to be other than temporary, the security is written down to fair value and the amount of the writedown is included in net income as a realized investment loss. | ||
(c) | Premium Revenues and Related Expenses | |
Insurance premiums are earned on a monthly pro rata basis over the terms of the policies and include estimates of audit premiums and premiums on retrospectively rated policies. Assumed reinsurance premiums are earned over the terms of the reinsurance contracts. Unearned premiums represent the portion of direct and assumed premiums written applicable to the unexpired terms of the insurance policies and reinsurance contracts in force. | ||
Ceded reinsurance premiums are reflected in operating results over the terms of the reinsurance contracts. Prepaid reinsurance premiums represent the portion of premiums ceded to reinsurers applicable to the unexpired terms of the reinsurance contracts in force. | ||
Reinsurance reinstatement premiums are recognized in the same period as the loss event that gave rise to the reinstatement premiums. | ||
Acquisition costs that are directly related to the successful acquisition of new or renewal insurance contracts are deferred and amortized over the period in which the related premiums are earned. Such costs include commissions, premium taxes and certain other underwriting and policy issuance costs. Commissions received related to reinsurance premiums ceded are considered in determining net acquisition costs eligible for deferral. Deferred policy acquisition costs are reviewed to determine whether they are recoverable from future income. If such costs are deemed to be unrecoverable, they are expensed. Anticipated investment income is considered in the determination of the recoverability of deferred policy acquisition costs. | ||
(d) | Unpaid Losses and Loss Expenses | |
Unpaid losses and loss expenses (also referred to as loss reserves) include the accumulation of individual case estimates for claims that have been reported and estimates of claims that have been incurred but not reported as well as estimates of the expenses associated with processing and settling all reported and unreported claims, less estimates of anticipated salvage and subrogation recoveries. Estimates are based upon past loss experience modified for current trends as well as prevailing economic, legal and social conditions. Loss reserves are not discounted to present value. | ||
Loss reserves are regularly reviewed using a variety of actuarial techniques. Reserve estimates are updated as historical loss experience develops, additional claims are reported and/or settled and new information becomes available. Any changes in estimates are reflected in operating results in the period in which the estimates are changed. | ||
Reinsurance recoverable on unpaid losses and loss expenses represents an estimate of the portion of gross loss reserves that will be recovered from reinsurers. Amounts recoverable from reinsurers are estimated using assumptions that are consistent with those used in estimating the gross losses associated with the reinsured policies. A provision for estimated uncollectible reinsurance is recorded based on periodic evaluations of balances due from reinsurers, the financial condition of the reinsurers, coverage disputes and other relevant factors. | ||
(e) | Financial Products | |
Derivatives are carried at fair value as of the balance sheet date. Changes in fair value are recognized in net income in the period of the change and are included in other revenues. | ||
Assets and liabilities related to these derivatives are included in other assets and other liabilities. | ||
(f) | Goodwill | |
Goodwill represents the excess of the cost of an acquired entity over the fair value of net assets acquired. Goodwill is tested for impairment at least annually. | ||
(g) | Property and Equipment | |
Property and equipment used in operations, including certain costs incurred to develop or obtain computer software for internal use, are capitalized and carried at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Property and equipment are included in other assets. | ||
(h) | Real Estate | |
Real estate properties are carried at cost less accumulated depreciation and any writedowns for impairment. Real estate properties are reviewed for impairment whenever events or circumstances indicate that the carrying value of such properties may not be recoverable. Measurement of such impairment is based on the fair value of the property. Real estate properties are included in other assets. | ||
(i) | Income Taxes | |
Deferred income tax assets and liabilities are recognized for the expected future tax effects attributable to temporary differences between the financial reporting and tax bases of assets and liabilities, based on enacted tax rates and other provisions of tax law. The effect on deferred tax assets and liabilities of a change in tax laws or rates is recognized in net income in the period in which such change is enacted. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that all or some portion of the deferred tax assets will not be realized. | ||
The Corporation does not consider the earnings of its foreign subsidiaries to be permanently reinvested. Accordingly, provision has been made for the expected U.S. federal income tax liabilities applicable to undistributed earnings of foreign subsidiaries. | ||
(j) | Stock-Based Employee Compensation | |
The fair value method of accounting is used for stock-based employee compensation plans. Under the fair value method, compensation cost is measured based on the fair value of the award at the grant date and recognized over the requisite service period. | ||
(k) | Foreign Exchange | |
Assets and liabilities relating to foreign operations are translated into U.S. dollars using current exchange rates as of the balance sheet date. Revenues and expenses are translated into U.S. dollars using the average exchange rates during the year. | ||
The functional currency of foreign operations is generally the currency of the local operating environment since business is primarily transacted in such local currency. Translation gains and losses, net of applicable income tax, are excluded from net income and are credited or charged directly to other comprehensive income. | ||
(l) | Cash Flow Information | |
In the statement of cash flows, short term investments are not considered to be cash equivalents. The effect of changes in foreign exchange rates on cash balances was insignificant. | ||
In 2013, the Corporation exchanged its holdings of common stock and warrants of Alterra Capital Holdings Limited, with a cost basis of $177 million and a carrying value of $63 million, respectively, for common stock of Markel Corporation, valued at $226 million, and cash of $98 million, as a result of a business combination. The noncash portions of the transaction have been excluded from the statement of cash flows. |
Invested_Assets_and_Related_In
Invested Assets and Related Income | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Text Block [Abstract] | |||||||||||||||||||||||||
Invested Assets and Related Income | (2) Invested Assets and Related Income | ||||||||||||||||||||||||
(a) The amortized cost and fair value of fixed maturities and equity securities were as follows: | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Appreciation | Depreciation | ||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||
Tax exempt | $ | 18,614 | $ | 1,174 | $ | 16 | $ | 19,772 | |||||||||||||||||
Taxable | |||||||||||||||||||||||||
U.S. government and government agency and | 1,962 | 46 | 1 | 2,007 | |||||||||||||||||||||
authority obligations | |||||||||||||||||||||||||
Corporate bonds | 8,741 | 327 | 40 | 9,028 | |||||||||||||||||||||
Foreign government and government agency obligations | 6,380 | 295 | 3 | 6,672 | |||||||||||||||||||||
Residential mortgage-backed securities | 192 | 20 | 1 | 211 | |||||||||||||||||||||
Commercial mortgage-backed securities | 1,069 | 22 | 1 | 1,090 | |||||||||||||||||||||
18,344 | 710 | 46 | 19,008 | ||||||||||||||||||||||
Total fixed maturities | $ | 36,958 | $ | 1,884 | $ | 62 | $ | 38,780 | |||||||||||||||||
Equity securities | $ | 1,089 | $ | 894 | $ | 19 | $ | 1,964 | |||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Appreciation | Depreciation | ||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||
Tax exempt | $ | 17,808 | $ | 802 | $ | 189 | $ | 18,421 | |||||||||||||||||
Taxable | |||||||||||||||||||||||||
U.S. government and government agency and authority obligations | 784 | 27 | 9 | 802 | |||||||||||||||||||||
Corporate bonds | 9,032 | 370 | 88 | 9,314 | |||||||||||||||||||||
Foreign government and government agency obligations | 6,719 | 206 | 35 | 6,890 | |||||||||||||||||||||
Residential mortgage-backed securities | 277 | 23 | 1 | 299 | |||||||||||||||||||||
Commercial mortgage-backed securities | 1,339 | 29 | 3 | 1,365 | |||||||||||||||||||||
18,151 | 655 | 136 | 18,670 | ||||||||||||||||||||||
Total fixed maturities | $ | 35,959 | $ | 1,457 | $ | 325 | $ | 37,091 | |||||||||||||||||
Equity securities | $ | 1,057 | $ | 756 | $ | 3 | $ | 1,810 | |||||||||||||||||
The following table summarizes the fair value of the tax exempt fixed maturities at December 31, 2014 and 2013: | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Special revenue bonds | $ | 12,936 | $ | 11,717 | |||||||||||||||||||||
State general obligation bonds | 2,415 | 2,292 | |||||||||||||||||||||||
Municipal and political subdivision general obligation bonds | 2,378 | 2,220 | |||||||||||||||||||||||
Pre-refunded bonds | 2,043 | 2,192 | |||||||||||||||||||||||
$ | 19,772 | $ | 18,421 | ||||||||||||||||||||||
Special revenue bonds are supported by income streams generated in a broad range of sectors, primarily highways, water and sewer utilities, hospitals, electric utilities, airports, universities and housing, as well as specifically pledged tax revenues. The special revenue bond holdings are well-diversified and spread relatively evenly over these sectors. An irrevocable trust containing U.S. government or government agency obligations has been established to fund the remaining principal and interest payments of the pre-refunded bonds. | |||||||||||||||||||||||||
The following table summarizes the fair value and amortized cost of the tax exempt fixed maturities other than pre-refunded bonds held at December 31, 2014 and 2013, for the five states having the largest concentration of issuers within the tax exempt fixed maturity portfolio. The remainder of tax exempt fixed maturities were issued by a broad range of other states and municipalities and political subdivisions within those states. In the following table, “state” identifies the issuer or the location of the issuing municipality or political subdivision within a state. | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||
State | Special | Municipal | State | Total | Amortized | ||||||||||||||||||||
Revenue | and Political | General | Cost | ||||||||||||||||||||||
Bonds | Subdivision | Obligations | |||||||||||||||||||||||
General | |||||||||||||||||||||||||
Obligations | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
New York | $ | 2,046 | $ | 173 | $ | 43 | $ | 2,262 | $ | 2,135 | |||||||||||||||
Texas | 883 | 852 | 211 | 1,946 | 1,829 | ||||||||||||||||||||
California | 1,098 | 153 | 256 | 1,507 | 1,422 | ||||||||||||||||||||
Illinois | 608 | 381 | 97 | 1,086 | 1,022 | ||||||||||||||||||||
Florida | 850 | 63 | 167 | 1,080 | 1,017 | ||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||
State | Special | Municipal | State | Total | Amortized | ||||||||||||||||||||
Revenue | and Political | General | Cost | ||||||||||||||||||||||
Bonds | Subdivision | Obligations | |||||||||||||||||||||||
General | |||||||||||||||||||||||||
Obligations | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Texas | $ | 930 | $ | 830 | $ | 230 | $ | 1,990 | $ | 1,904 | |||||||||||||||
New York | 1,611 | 197 | 31 | 1,839 | 1,809 | ||||||||||||||||||||
California | 859 | 82 | 198 | 1,139 | 1,093 | ||||||||||||||||||||
Illinois | 577 | 483 | 56 | 1,116 | 1,094 | ||||||||||||||||||||
Florida | 757 | 38 | 108 | 903 | 877 | ||||||||||||||||||||
At December 31, 2014 and 2013, foreign government and government agency fixed maturities consisted of high quality fixed maturities primarily issued by national governments and, to a lesser extent, government agencies, regional governments and supranational organizations. | |||||||||||||||||||||||||
The following table summarizes the fair value and amortized cost of the foreign government and government agency fixed maturities held at December 31, 2014 and 2013, for the five countries having the largest concentration of issuers within the foreign government and government agency fixed maturity portfolio. In the following table, “country” identifies the issuer or the location of the issuing government agency or regional government within a country. | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Country | Fair | Amortized | Fair | Amortized | |||||||||||||||||||||
Value | Cost | Value | Cost | ||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Canada | $ | 1,893 | $ | 1,823 | $ | 1,993 | $ | 1,953 | |||||||||||||||||
United Kingdom | 1,230 | 1,163 | 1,026 | 1,004 | |||||||||||||||||||||
Germany | 1,102 | 1,045 | 1,241 | 1,211 | |||||||||||||||||||||
Australia | 746 | 700 | 739 | 700 | |||||||||||||||||||||
Brazil | 232 | 231 | 270 | 270 | |||||||||||||||||||||
At December 31, 2014 and 2013, the foreign government and government agency fixed maturities also included $469 million and $547 million, respectively, of fixed maturities issued by supranational organizations. | |||||||||||||||||||||||||
The fair value and amortized cost of fixed maturities at December 31, 2014 by contractual maturity were as follows: | |||||||||||||||||||||||||
Fair | Amortized | ||||||||||||||||||||||||
Value | Cost | ||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Due in one year or less | $ | 2,947 | $ | 2,922 | |||||||||||||||||||||
Due after one year through five years | 12,906 | 12,406 | |||||||||||||||||||||||
Due after five years through ten years | 12,814 | 12,041 | |||||||||||||||||||||||
Due after ten years | 8,812 | 8,328 | |||||||||||||||||||||||
37,479 | 35,697 | ||||||||||||||||||||||||
Residential mortgage-backed securities | 211 | 192 | |||||||||||||||||||||||
Commercial mortgage-backed securities | 1,090 | 1,069 | |||||||||||||||||||||||
$ | 38,780 | $ | 36,958 | ||||||||||||||||||||||
Actual maturities could differ from contractual maturities because borrowers may have the right to call or prepay obligations. | |||||||||||||||||||||||||
The Corporation’s equity securities comprise a diversified portfolio of primarily U.S. publicly-traded common stocks. | |||||||||||||||||||||||||
The Corporation is involved in the normal course of business with variable interest entities (VIEs) primarily as a passive investor in residential mortgage-backed securities, commercial mortgage-backed securities and private equity limited partnerships issued by third party VIEs. The Corporation is not the primary beneficiary of these VIEs. The Corporation’s maximum exposure to loss with respect to these investments is limited to the investment carrying values included in the Corporation’s consolidated balance sheet and any unfunded partnership commitments. | |||||||||||||||||||||||||
(b) The components of unrealized appreciation or depreciation, including unrealized other-than-temporary impairment losses, of investments carried at fair value were as follows: | |||||||||||||||||||||||||
December 31 | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||
Gross unrealized appreciation | $ | 1,884 | $ | 1,457 | |||||||||||||||||||||
Gross unrealized depreciation | 62 | 325 | |||||||||||||||||||||||
1,822 | 1,132 | ||||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||
Gross unrealized appreciation | 894 | 756 | |||||||||||||||||||||||
Gross unrealized depreciation | 19 | 3 | |||||||||||||||||||||||
875 | 753 | ||||||||||||||||||||||||
2,697 | 1,885 | ||||||||||||||||||||||||
Deferred income tax liability | 944 | 660 | |||||||||||||||||||||||
$ | 1,753 | $ | 1,225 | ||||||||||||||||||||||
The following table summarizes, for all investment securities in an unrealized loss position at December 31, 2014, the aggregate fair value and gross unrealized depreciation, including unrealized other-than-temporary impairment losses, by investment category and length of time that individual securities have continuously been in an unrealized loss position. | |||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||
Fair | Gross | Fair | Gross | Fair | Gross | ||||||||||||||||||||
Value | Unrealized | Value | Unrealized | Value | Unrealized | ||||||||||||||||||||
Depreciation | Depreciation | Depreciation | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||
Tax exempt | $ | 422 | $ | 3 | $ | 305 | $ | 13 | $ | 727 | $ | 16 | |||||||||||||
Taxable | |||||||||||||||||||||||||
U.S. government and government agency | 936 | 1 | 36 | — | 972 | 1 | |||||||||||||||||||
and authority obligations | |||||||||||||||||||||||||
Corporate bonds | 1,327 | 23 | 888 | 17 | 2,215 | 40 | |||||||||||||||||||
Foreign government and government | 318 | 1 | 207 | 2 | 525 | 3 | |||||||||||||||||||
agency obligations | |||||||||||||||||||||||||
Residential mortgage-backed securities | — | — | 7 | 1 | 7 | 1 | |||||||||||||||||||
Commercial mortgage-backed securities | 106 | — | 67 | 1 | 173 | 1 | |||||||||||||||||||
2,687 | 25 | 1,205 | 21 | 3,892 | 46 | ||||||||||||||||||||
Total fixed maturities | 3,109 | 28 | 1,510 | 34 | 4,619 | 62 | |||||||||||||||||||
Equity securities | 67 | 11 | 11 | 8 | 78 | 19 | |||||||||||||||||||
$ | 3,176 | $ | 39 | $ | 1,521 | $ | 42 | $ | 4,697 | $ | 81 | ||||||||||||||
At December 31, 2014, approximately 735 individual fixed maturities and 15 individual equity securities were in an unrealized loss position. The Corporation does not have the intent to sell and it is not more likely than not that the Corporation will be required to sell these fixed maturities before the securities recover to their amortized cost value. In addition, the Corporation believes that none of the declines in the fair values of these fixed maturities relate to credit losses. The Corporation has the intent and ability to hold the equity securities in an unrealized loss position for a period of time sufficient to allow for the recovery of cost. The Corporation believes that none of the declines in the fair value of these fixed maturities and equity securities were other than temporary at December 31, 2014. | |||||||||||||||||||||||||
The following table summarizes, for all investment securities in an unrealized loss position at December 31, 2013, the aggregate fair value and gross unrealized depreciation, including unrealized other-than-temporary impairment losses, by investment category and length of time that individual securities have continuously been in an unrealized loss position. | |||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||
Fair | Gross | Fair | Gross | Fair | Gross | ||||||||||||||||||||
Value | Unrealized | Value | Unrealized | Value | Unrealized | ||||||||||||||||||||
Depreciation | Depreciation | Depreciation | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||
Tax exempt | $ | 3,417 | $ | 144 | $ | 307 | $ | 45 | $ | 3,724 | $ | 189 | |||||||||||||
Taxable | |||||||||||||||||||||||||
U.S. government and government agency and authority obligations | 213 | 6 | 35 | 3 | 248 | 9 | |||||||||||||||||||
Corporate bonds | 2,526 | 76 | 222 | 12 | 2,748 | 88 | |||||||||||||||||||
Foreign government and government agency obligations | 1,735 | 32 | 75 | 3 | 1,810 | 35 | |||||||||||||||||||
Residential mortgage-backed securities | 4 | — | 14 | 1 | 18 | 1 | |||||||||||||||||||
Commercial mortgage-backed securities | 153 | 1 | 39 | 2 | 192 | 3 | |||||||||||||||||||
4,631 | 115 | 385 | 21 | 5,016 | 136 | ||||||||||||||||||||
Total fixed maturities | 8,048 | 259 | 692 | 66 | 8,740 | 325 | |||||||||||||||||||
Equity securities | 41 | 3 | — | — | 41 | 3 | |||||||||||||||||||
$ | 8,089 | $ | 262 | $ | 692 | $ | 66 | $ | 8,781 | $ | 328 | ||||||||||||||
The change in unrealized appreciation or depreciation of investments carried at fair value, including the change in unrealized other-than-temporary impairment losses, was as follows: | |||||||||||||||||||||||||
Years Ended December 31 | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Change in unrealized appreciation of fixed maturities | $ | 690 | $ | (1,546 | ) | $ | 256 | ||||||||||||||||||
Change in unrealized appreciation of equity securities | 122 | 334 | 171 | ||||||||||||||||||||||
812 | (1,212 | ) | 427 | ||||||||||||||||||||||
Deferred income tax (credit) | 284 | (424 | ) | 150 | |||||||||||||||||||||
$ | 528 | $ | (788 | ) | $ | 277 | |||||||||||||||||||
(c) The sources of net investment income were as follows: | |||||||||||||||||||||||||
Years Ended December 31 | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Fixed maturities | $ | 1,314 | $ | 1,380 | $ | 1,465 | |||||||||||||||||||
Equity securities | 41 | 38 | 40 | ||||||||||||||||||||||
Short term investments | 18 | 16 | 18 | ||||||||||||||||||||||
Other | 21 | 31 | 33 | ||||||||||||||||||||||
Gross investment income | 1,394 | 1,465 | 1,556 | ||||||||||||||||||||||
Investment expenses | 42 | 49 | 38 | ||||||||||||||||||||||
$ | 1,352 | $ | 1,416 | $ | 1,518 | ||||||||||||||||||||
(d) Realized investment gains and losses were as follows: | |||||||||||||||||||||||||
Years Ended | |||||||||||||||||||||||||
December 31 | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||
Gross realized gains | $ | 126 | $ | 62 | $ | 124 | |||||||||||||||||||
Gross realized losses | (36 | ) | (42 | ) | (20 | ) | |||||||||||||||||||
Other-than-temporary impairment losses | (5 | ) | (2 | ) | (5 | ) | |||||||||||||||||||
85 | 18 | 99 | |||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||
Gross realized gains | 137 | 204 | 68 | ||||||||||||||||||||||
Gross realized losses | — | (1 | ) | — | |||||||||||||||||||||
Other-than-temporary impairment losses | (2 | ) | (9 | ) | (40 | ) | |||||||||||||||||||
135 | 194 | 28 | |||||||||||||||||||||||
Other invested assets | 149 | 190 | 66 | ||||||||||||||||||||||
$ | 369 | $ | 402 | $ | 193 | ||||||||||||||||||||
(e) As of December 31, 2014 and 2013, fixed maturities still held by the Corporation for which a portion of their other-than-temporary impairment losses were recognized in other comprehensive income had cumulative credit-related losses of $18 million and $20 million, respectively, recognized in net income. |
Deferred_Policy_Acquisition_Co
Deferred Policy Acquisition Costs | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Text Block [Abstract] | |||||||||||||
Deferred Policy Acquisition Costs | (3) Deferred Policy Acquisition Costs | ||||||||||||
Policy acquisition costs deferred and the related amortization reflected in operating results were as follows: | |||||||||||||
Years Ended December 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in millions) | |||||||||||||
Balance, beginning of year | $ | 1,255 | $ | 1,206 | $ | 1,210 | |||||||
Costs deferred during year | |||||||||||||
Commissions and brokerage | 2,073 | 1,979 | 1,919 | ||||||||||
Premium taxes and assessments | 258 | 263 | 247 | ||||||||||
Underwriting and policy issuance costs | 262 | 271 | 248 | ||||||||||
2,593 | 2,513 | 2,414 | |||||||||||
Foreign currency translation effect | (16 | ) | (10 | ) | -7 | ||||||||
Amortization during year | (2,548 | ) | (2,454 | ) | (2,411 | ) | |||||||
Balance, end of year | $ | 1,284 | $ | 1,255 | $ | 1,206 | |||||||
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property and Equipment | (4) Property and Equipment | ||||||||
Property and equipment included in other assets were as follows: | |||||||||
December 31 | |||||||||
2014 | 2013 | ||||||||
(in millions) | |||||||||
Cost | $ | 488 | $ | 501 | |||||
Accumulated depreciation | 239 | 243 | |||||||
$ | 249 | $ | 258 | ||||||
Depreciation expense related to property and equipment was $54 million, $55 million and $54 million for 2014, 2013, and 2012, respectively. |
Unpaid_Losses_and_Loss_Expense
Unpaid Losses and Loss Expenses | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Insurance [Abstract] | |||||||||||||
Unpaid Losses and Loss Expenses | (5) Unpaid Losses and Loss Expenses | ||||||||||||
(a) The process of establishing loss reserves is complex and imprecise as it must take into consideration many variables that are subject to the outcome of future events. As a result, informed subjective estimates and judgments as to the P&C Group’s ultimate exposure to losses are an integral component of the loss reserving process. The loss reserve estimation process relies on the basic assumption that past experience, adjusted for the effects of current developments and likely trends, is an appropriate basis for predicting future outcomes. | |||||||||||||
Most of the P&C Group’s loss reserves relate to long tail liability classes of business. For many liability claims significant periods of time, ranging up to several years or even decades, may elapse between the occurrence of the loss, the reporting of the loss and the settlement of the claim. The longer the time span between the incidence of a loss and the settlement of the claim, the more the ultimate settlement amount can vary. | |||||||||||||
There are numerous factors that contribute to the inherent uncertainty in the process of establishing loss reserves. Among these factors are changes in the inflation rate for goods and services related to covered damages such as medical care and home repair costs; changes in the judicial interpretation of policy provisions relating to the determination of coverage; changes in the general attitude of juries in the determination of liability and damages; legislative actions; changes in the medical condition of claimants; changes in the estimates of the number and/or severity of claims that have been incurred but not reported as of the date of the financial statements; and changes in the P&C Group’s book of business, underwriting standards and/or claim handling procedures. | |||||||||||||
In addition, the uncertain effects of emerging or potential claims and coverage issues that arise as legal, judicial, economic and social conditions change must be taken into consideration. These issues have had, and may continue to have, a negative effect on loss reserves by either extending coverage beyond the original underwriting intent or by increasing the number or size of claims. As a result of such issues, the uncertainties inherent in estimating ultimate claim costs on the basis of past experience have grown, further complicating the already complex loss reserving process. | |||||||||||||
Management believes that the aggregate net loss reserves of the P&C Group at December 31, 2014 were adequate to cover claims for losses that had occurred as of that date, including both those known and those yet to be reported. In establishing such reserves, management considers facts currently known and the present state of the law and coverage litigation. However, given the significant uncertainties inherent in the loss reserving process, it is possible that management’s estimate of the ultimate liability for losses that had occurred as of December 31, 2014 may change, which could have a material effect on the Corporation’s results of operations and financial condition. | |||||||||||||
(b) A reconciliation of the beginning and ending liability for unpaid losses and loss expenses, net of reinsurance recoverable, and a reconciliation of the net liability to the corresponding liability on a gross basis is as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in millions) | |||||||||||||
Gross liability, beginning of year | $ | 23,146 | $ | 23,963 | $ | 23,068 | |||||||
Reinsurance recoverable, beginning of year | 1,802 | 1,941 | 1,739 | ||||||||||
Net liability, beginning of year | 21,344 | 22,022 | 21,329 | ||||||||||
Net incurred losses and loss expenses related to | |||||||||||||
Current year | 7,621 | 7,232 | 8,121 | ||||||||||
Prior years | (636 | ) | (712 | ) | (614 | ) | |||||||
6,985 | 6,520 | 7,507 | |||||||||||
Net payments for losses and loss expenses related to | |||||||||||||
Current year | 2,496 | 2,150 | 2,323 | ||||||||||
Prior years | 4,534 | 4,952 | 4,493 | ||||||||||
7,030 | 7,102 | 6,816 | |||||||||||
Foreign currency translation effect | (260 | ) | (96 | ) | 2 | ||||||||
Net liability, end of year | 21,039 | 21,344 | 22,022 | ||||||||||
Reinsurance recoverable, end of year | 1,639 | 1,802 | 1,941 | ||||||||||
Gross liability, end of year | $ | 22,678 | $ | 23,146 | $ | 23,963 | |||||||
Changes in loss reserve estimates are unavoidable because such estimates are subject to the outcome of future events. Loss trends vary and time is required for changes in trends to be recognized and confirmed. During 2014, the P&C Group experienced overall favorable development of $636 million on net unpaid losses and loss expenses established as of the previous year end. This compares with favorable prior year development of $712 million in 2013 and $614 million in 2012. Such favorable development was reflected in operating results in these respective years. | |||||||||||||
The net favorable development of $636 million in 2014 was due to various factors. Overall favorable development of about $320 million was experienced in the professional liability classes other than fidelity. This favorable development was driven mainly by the directors and officers liability and fiduciary liability classes. The reported loss activity for these classes was less than expected, mostly in terms of claim severity. The aggregate favorable emergence was driven by accident years 2010 and prior. Favorable development of about $205 million in the aggregate was experienced in the personal and commercial liability classes. The most significant favorable development occurred in the excess liability classes, particularly in accident years 2011 and prior. This was partially offset by adverse development experienced in other liability classes, most notably due to $100 million of incurred losses related to asbestos and toxic waste claims in older accident years. Overall, prior accident year claim activity for the personal and commercial liability classes was less severe than expected. Favorable development of about $60 million in the aggregate was experienced in the personal and commercial property classes, with the most significant amounts related to the 2013 and 2012 accident years. The severity of late developing property claims that emerged during 2014 was lower than expected. Favorable development of about $50 million was experienced in the workers’ compensation class, with favorable development occurring in most accident years. The severity of prior accident year claim activity for this class was lower than expected. | |||||||||||||
The net favorable development of $712 million in 2013 was due to various factors. Favorable development of about $265 million in the aggregate, including $30 million related to catastrophes, was experienced in the personal and commercial property classes, mostly related to the 2012 and 2011 accident years. The severity and frequency of late developing property claims that emerged during 2013 were lower than expected, including those related to catastrophes, and the development of existing case reserves was more favorable than expected. Overall favorable development of about $260 million was experienced in the professional liability classes other than fidelity. This favorable development was driven by the directors and officers liability and fiduciary liability classes, partially offset by adverse development in the errors and omissions liability and employment practices liability classes. The reported loss activity was less than expected, with aggregate favorable emergence from accident years 2010 and prior. Favorable development of about $160 million in the aggregate was experienced in the personal and commercial liability classes. The most significant favorable development occurred in the excess liability classes, particularly in accident years 2010 and prior. There was some offsetting adverse development in other liability classes, most notably due to $106 million of incurred losses related to asbestos and toxic waste claims in older accident years. Overall, prior period liability claims were lower than expected, particularly the severity of such claims, and the effects of underwriting changes that affected these years have been more positive than expected. Unfavorable development of about $50 million was experienced in the fidelity class due to higher than expected reported loss emergence, related mostly to accident years subsequent to 2007. Favorable development of about $35 million was experienced in the personal automobile business due primarily to more favorable case reserve development and lower severity of prior period claims than expected. Favorable development of about $30 million was experienced in the surety business due to lower than expected loss emergence in recent accident years. | |||||||||||||
The net favorable development of $614 million in 2012 was due to various factors. Favorable development of about $250 million in the aggregate was experienced in the personal and commercial liability classes. The most significant favorable development occurred in accident years 2006 to 2009, which more than offset adverse development in accident years 2002 and prior, which included $83 million of incurred losses related to asbestos and toxic waste claims. The overall frequency and severity of prior period liability claims were lower than expected and the effects of underwriting changes that affected these years have been more positive than expected, especially in the commercial excess liability class. Overall favorable development of about $200 million was experienced in the professional liability classes other than fidelity. This favorable development was driven by the directors and officers liability and fiduciary liability classes, partially offset by adverse development experienced in the errors and omissions liability and employment practices liability classes. The reported loss activity was less than expected, with aggregate favorable emergence from accident years 2008 and prior partly offset by some adverse emergence in the more recent accident years. Favorable development of about $125 million in the aggregate was experienced in the personal and commercial property classes, mostly related to the 2007 through 2011 accident years. The severity and frequency of late developing property claims that emerged during 2012 were lower than expected, including those related to catastrophes, and the development of existing case reserves was more favorable than expected. Unfavorable development of about $60 million was experienced in the fidelity class due to higher than expected reported loss emergence, related mostly to accident years 2008 through 2010. Favorable development of about $45 million was experienced in the runoff of our reinsurance assumed business due primarily to better than expected reported loss activity from cedants. Favorable development of about $40 million was experienced in the personal automobile business due primarily to lower than expected frequency of prior period claims. Favorable development of about $25 million was experienced in the surety business due to lower than expected loss emergence in recent accident years. | |||||||||||||
(c) The estimation of loss reserves relating to asbestos and toxic waste claims on insurance policies written many years ago is subject to greater uncertainty than other types of claims due to inconsistent court decisions as well as judicial interpretations and legislative actions that in some instances have tended to broaden coverage beyond the original intent of such policies and in others have expanded theories of liability. The insurance industry as a whole remains engaged in extensive litigation over coverage, accident year allocation and liability issues and is thus confronted with a continuing uncertainty in its efforts to quantify these exposures. | |||||||||||||
Asbestos remains the most significant and difficult mass tort for the insurance industry in terms of claims volume and dollar exposure. Asbestos claims relate primarily to bodily injuries asserted by those who came in contact with asbestos or products containing asbestos. Tort theory affecting asbestos litigation has evolved over the years. Early court cases established the “continuous trigger” theory with respect to insurance coverage. Under this theory, insurance coverage is deemed to be triggered from the time a claimant is first exposed to asbestos until the manifestation of any disease. This interpretation of a policy trigger can involve insurance policies over many years and increases insurance companies’ exposure to liability. | |||||||||||||
New asbestos claims and new exposures on existing claims have continued despite the fact that usage of asbestos has declined since the mid-1970s. Many claimants were exposed to multiple asbestos products over an extended period of time. As a result, claim filings typically name dozens of defendants. The plaintiffs’ bar has solicited new claimants through extensive advertising and through asbestos medical screenings. A vast majority of asbestos bodily injury claims have been filed by claimants who do not show any signs of asbestos related disease. New asbestos cases are often filed in those jurisdictions with a reputation for judges and juries that are sympathetic to plaintiffs. | |||||||||||||
Approximately 110 manufacturers and distributors of asbestos products have filed for bankruptcy protection as a result of asbestos related liabilities. A bankruptcy sometimes involves an agreement to a plan between the debtor and its creditors, including the creation of a trust to pay current and future asbestos claimants for their injuries. Although the debtor is negotiating in part with its insurers’ money, insurers are generally given only limited opportunity to be heard. In addition to contributing to the overall number of claims, bankruptcy proceedings not only result in increased settlement demands against remaining solvent defendants, but also create the potential for recoveries from multiple trusts by the same claimant for the same alleged injuries. | |||||||||||||
There have been some positive legislative and judicial developments in the asbestos environment over the past several years. Various challenges to the mass screening of claimants have occurred which have led to higher medical evidentiary standards for asbestos and other exposure-type claims. Also, a number of states have implemented legislative and judicial reforms that focus the courts’ resources on the claims of the most seriously injured. Those who allege serious injury and can present credible evidence of their injuries are receiving priority trial settings in the courts, while those who have not shown any credible disease manifestation are having their hearing dates delayed or placed on an inactive docket, which preserves the right to pursue litigation in the future. Further, a number of jurisdictions have adopted venue reform that requires plaintiffs to have a connection to the jurisdiction in order to file a complaint, although in more recent years, this type of reform has slowed. In recognition that many aspects of bankruptcy plans are unfair to certain classes of claimants and to the insurance industry, these plans are being more closely scrutinized by the courts and rejected when appropriate. Finally, a number of jurisdictions have passed or are considering legislation that will require fuller disclosure by plaintiffs of amounts received from asbestos bankruptcy trusts. | |||||||||||||
The P&C Group’s most significant individual asbestos exposures involve products liability on the part of “traditional” defendants who were engaged in the manufacture, distribution or installation of asbestos products. The P&C Group wrote primary general liability and/or excess liability coverages for these insureds. While these insureds are relatively few in number, their exposure has been substantial due to the high volume of claims, the erosion of the underlying limits and the bankruptcies of target defendants. | |||||||||||||
The P&C Group’s other asbestos exposures involve products and non-products liability on the part of “peripheral” defendants, including a mix of manufacturers, distributors and installers of certain products that contain asbestos in small quantities and owners or operators of properties where asbestos was present. Generally, these insureds are named defendants on a regional rather than a nationwide basis. As the financial resources of traditional asbestos defendants have been depleted, plaintiffs are targeting these viable peripheral parties with greater frequency and, in many cases, for large awards. | |||||||||||||
Asbestos claims against the major manufacturers, distributors or installers of asbestos products were typically presented under the products liability section of primary general liability policies as well as under excess liability policies, both of which typically had aggregate limits that capped an insurer’s exposure. In recent years, a number of asbestos claims by insureds are being presented as “non-products” claims. In these instances, claimants contend that they came into contact with asbestos at premises owned or operated by the P&C Group’s insureds and/or were exposed to asbestos during asbestos installation at a particular location. These non-products claims are presented under the premises or operations section of primary general liability policies. Unlike products coverage, the premises or operations coverages in these older policies typically had no aggregate limits on coverage, creating potentially greater exposure. Further, in an effort to seek additional insurance coverage, some insureds with installation activities who have substantially eroded their products coverage are presenting new asbestos claims as non-products operations claims or attempting to reclassify previously settled products claims as non-products claims to restore a portion of previously exhausted products aggregate limits. It is difficult to predict whether insureds will be successful in asserting claims under non-products coverage or whether insurers will be successful in asserting additional defenses. Accordingly, the ultimate cost to insurers of the claims for coverage not subject to aggregate limits is uncertain. | |||||||||||||
Various U.S. federal proposals to solve the ongoing asbestos litigation crisis have been considered by the U.S. Congress over the years, but none have yet been enacted. The prospect of federal asbestos reform legislation remains uncertain. | |||||||||||||
In establishing asbestos reserves, the exposure presented by each insured is evaluated. As part of this evaluation, consideration is given to a variety of factors including: the available insurance coverage; limits and deductibles; the jurisdictions involved; the number of claimants; the disease mix exhibited by the claimants; the past settlement values of similar claims; the potential role of other insurance, particularly underlying coverage below excess liability policies; potential bankruptcy impact; relevant judicial interpretations; and applicable coverage defenses, including asbestos exclusions. | |||||||||||||
Significant uncertainty remains as to the ultimate liability of the P&C Group related to asbestos related claims. This uncertainty is due to several factors including the long latency period between asbestos exposure and disease manifestation and the resulting potential for involvement of multiple policy periods for individual claims; plaintiffs’ expanding theories of liability and increased focus on peripheral defendants; the volume of claims by unimpaired plaintiffs and the extent to which they can be precluded from making claims; the volume of claims by severely impaired plaintiffs, such as those with mesothelioma, and the size of settlements and judgments received by those plaintiffs; the volume of claims by plaintiffs suffering from other malignancies such as lung cancer and their ability to establish a causal link between their disease and exposure to asbestos; the efforts by insureds to claim the right to non-products coverage not subject to aggregate limits; the number of insureds seeking bankruptcy protection as a result of asbestos related liabilities; the ability of claimants to bring a claim in a state in which they have no residency or exposure; the impact of the exhaustion of primary limits and the resulting increase in claims on excess liability policies that the P&C Group has issued; inconsistent court decisions and diverging legal interpretations; and the possibility, however remote, of federal legislation that would address the asbestos problem. These significant uncertainties are not likely to be resolved in the near future. | |||||||||||||
Toxic waste claims relate primarily to pollution and associated cleanup costs. The P&C Group’s insureds have two potential areas of exposure: hazardous waste dump sites and pollution at the insured site primarily from underground storage tanks and manufacturing processes. | |||||||||||||
The U.S. federal Comprehensive Environmental Response Compensation and Liability Act of 1980 (Superfund) has been interpreted to impose strict, retroactive and joint and several liability on potentially responsible parties (PRPs) for the cost of remediating hazardous waste sites. | |||||||||||||
Most PRPs named to date are parties who have been generators, transporters, past or present landowners or past or present site operators. Most sites have multiple PRPs. Insurance policies issued to PRPs were not intended to cover claims arising from gradual pollution. Environmental remediation claims tendered by PRPs and others to insurers have frequently resulted in disputes over insurers’ contractual obligations with respect to pollution claims. The resulting litigation against insurers extends to issues of liability, coverage and other policy provisions. | |||||||||||||
There is substantial uncertainty involved in estimating the P&C Group’s liabilities related to these claims. First, the liabilities of the claimants are extremely difficult to estimate. At any given waste site, the allocation of remediation costs among governmental authorities and the PRPs varies greatly depending on a variety of factors. Second, different courts have addressed liability and coverage issues regarding pollution claims and have reached inconsistent conclusions in their interpretation of several issues. These significant uncertainties are not likely to be resolved definitively in the near future. | |||||||||||||
Uncertainties also remain as to the Superfund law itself. Superfund’s taxing authority expired on December 31, 1995 and has not been re-enacted. Federal legislation appears to be at a standstill. At this time, it is not possible to predict the direction that any reforms may take, when they may occur or the effect that any changes may have on the insurance industry. | |||||||||||||
Without federal movement on Superfund reform, the enforcement of Superfund liability has occasionally shifted to the states. States are being forced to reconsider state-level cleanup statutes and regulations. As individual states move forward, the potential for conflicting state regulation becomes greater. In a few states, cases have been brought against insureds or directly against insurance companies for environmental pollution and natural resources damages. To date, only a few natural resource claims have been filed and they are being vigorously defended. Significant uncertainty remains as to the cost of remediating the state sites. Because of the large number of state sites, such sites could prove even more costly in the aggregate than Superfund sites. | |||||||||||||
In establishing toxic waste reserves, the exposure presented by each insured is evaluated. As part of this evaluation, consideration is given to a variety of factors including: the probable liability, available insurance coverage, allocation of potential loss to the appropriate accident year, past settlement values of similar claims, relevant judicial interpretations, applicable coverage defenses as well as facts that are unique to each insured. | |||||||||||||
Based on facts currently known and the present state of the law and coverage litigation, management believes that the loss reserves carried at December 31, 2014 for asbestos and toxic waste claims were adequate. However, given the inherent uncertainties, as well as the judicial decisions and legislative actions that have broadened the scope of coverage and expanded theories of liability in the past and the possibilities of similar interpretations in the future, it is possible that the estimate of loss reserves relating to these exposures may increase in future periods as new information becomes available and as claims develop. |
Debt_and_Credit_Arrangements
Debt and Credit Arrangements | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Debt and Credit Arrangements | (6) Debt and Credit Arrangements | ||||||||
(a) Long term debt consisted of the following: | |||||||||
December 31 | |||||||||
2014 | 2013 | ||||||||
(in millions) | |||||||||
5.75% notes due May 15, 2018 | $ | 600 | $ | 600 | |||||
6.6% debentures due August 15, 2018 | 100 | 100 | |||||||
6.8% debentures due November 15, 2031 | 200 | 200 | |||||||
6% notes due May 11, 2037 | 800 | 800 | |||||||
6.5% notes due May 15, 2038 | 600 | 600 | |||||||
6.375% capital securities due March 29, 2067 | 1,000 | 1,000 | |||||||
$ | 3,300 | $ | 3,300 | ||||||
All of the outstanding notes and debentures are unsecured obligations of Chubb. Chubb generally may redeem some or all of the notes and debentures prior to maturity in accordance with the terms of each debt instrument. | |||||||||
Chubb has outstanding $1.0 billion of unsecured junior subordinated capital securities. The capital securities will become due on April 15, 2037, the scheduled maturity date, but only to the extent that Chubb has received sufficient net proceeds from the sale of certain qualifying capital securities. Chubb must use its commercially reasonable efforts, subject to certain market disruption events, to sell enough qualifying capital securities to permit repayment of the capital securities on the scheduled maturity date or as soon thereafter as possible. Any remaining outstanding principal amount will be due on March 29, 2067, the final maturity date. The capital securities bear interest at a fixed rate of 6.375% through April 14, 2017. Thereafter, the capital securities will bear interest at a rate equal to the three-month LIBOR rate plus 2.25%. Subject to certain conditions, Chubb has the right to defer the payment of interest on the capital securities for a period not exceeding ten consecutive years. During any such period, interest will continue to accrue and Chubb generally may not declare or pay any dividends on or purchase any shares of its capital stock. | |||||||||
In connection with the issuance of the capital securities, Chubb entered into a replacement capital covenant in which it agreed that it will not repay, redeem, or purchase the capital securities before March 29, 2047, unless, subject to certain limitations, it has received proceeds from the sale of specified replacement capital securities. The replacement capital covenant is not intended for the benefit of holders of the capital securities and may not be enforced by them. The replacement capital covenant is for the benefit of holders of one or more designated series of Chubb’s indebtedness, which initially was and continues to be its 6.8% debentures due November 15, 2031. | |||||||||
Subject to the replacement capital covenant, the capital securities may be redeemed, in whole or in part, at any time on or after April 15, 2017 at a redemption price equal to the principal amount plus any accrued interest or prior to April 15, 2017 at a redemption price equal to the greater of (i) the principal amount or (ii) a make-whole amount, in each case plus any accrued interest. | |||||||||
The amounts of long term debt due annually during the five years subsequent to December 31, 2014 are as follows: | |||||||||
Years Ending December 31 | (in millions) | ||||||||
2015 | $ | — | |||||||
2016 | — | ||||||||
2017 | — | ||||||||
2018 | 700 | ||||||||
2019 | — | ||||||||
(b) Interest costs of $209 million, $213 million and $224 million were incurred in 2014, 2013 and 2012, respectively. Interest paid was $205 million, $213 million and $220 million in 2014, 2013 and 2012, respectively. | |||||||||
(c) Chubb has a revolving credit agreement with a syndicate of banks that provides for up to $500 million of unsecured borrowings. The revolving credit facility is available for general corporate purposes. The agreement has a maturity date of September 24, 2017. Various interest rate options are available to Chubb, all of which are based on market interest rates. The agreement contains customary restrictive covenants, including a covenant to maintain a minimum adjusted consolidated shareholders’ equity. At December 31, 2014, Chubb was in compliance with all such covenants. Chubb is permitted to request an increase in the credit available under the agreement, no more than two times per year, up to a maximum facility amount of $750 million. Chubb is permitted to request on two occasions, at any time during the term of the agreement, an extension of the maturity date for an additional one year period. There have been no borrowings under this agreement. On the maturity date of the agreement, any borrowings then outstanding become payable. |
Federal_and_Foreign_Income_Tax
Federal and Foreign Income Tax | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||
Federal and Foreign Income Tax | (7) Federal and Foreign Income Tax | ||||||||||||||||||||||||
(a) Income tax expense and taxes paid consisted of the following components: | |||||||||||||||||||||||||
Years Ended December 31 | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||||
Current tax | |||||||||||||||||||||||||
United States | $ | 617 | $ | 791 | $ | 276 | |||||||||||||||||||
Foreign | 124 | 91 | 143 | ||||||||||||||||||||||
Deferred tax, principally United States | 20 | 10 | 32 | ||||||||||||||||||||||
$ | 761 | $ | 892 | $ | 451 | ||||||||||||||||||||
Federal and foreign income taxes paid | $ | 571 | $ | 789 | $ | 472 | |||||||||||||||||||
Income before federal and foreign income taxes from U.S. operations was $2,424 million, $2,766 million and $1,373 million in 2014, 2013 and 2012, respectively. Income before federal and foreign income taxes from foreign operations was $437 million, $471 million and $623 million in 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||
(b) The effective income tax rate is different than the statutory federal corporate tax rate. The reasons for the different effective tax rate were as follows: | |||||||||||||||||||||||||
Years Ended December 31 | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Amount | % of | Amount | % of | Amount | % of | ||||||||||||||||||||
Pre-Tax | Pre-Tax | Pre-Tax | |||||||||||||||||||||||
Income | Income | Income | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Income before federal and foreign income tax | $ | 2,861 | $ | 3,237 | $ | 1,996 | |||||||||||||||||||
Tax at statutory federal income tax rate | $ | 1,001 | 35 | % | $ | 1,133 | 35 | % | $ | 699 | 35 | % | |||||||||||||
Tax exempt interest income | (212 | ) | (7.4 | ) | (222 | ) | (6.8 | ) | (233 | ) | (11.7 | ) | |||||||||||||
Other, net | (28 | ) | (1.0 | ) | (19 | ) | (.6 | ) | (15 | ) | (.7 | ) | |||||||||||||
Federal and foreign income tax | $ | 761 | 26.6 | % | $ | 892 | 27.6 | % | $ | 451 | 22.6 | % | |||||||||||||
(c) The tax effects of temporary differences that gave rise to deferred income tax assets and liabilities were as follows: | |||||||||||||||||||||||||
December 31 | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Deferred income tax assets | |||||||||||||||||||||||||
Unpaid losses and loss expenses | $ | 509 | $ | 524 | |||||||||||||||||||||
Unearned premiums | 364 | 350 | |||||||||||||||||||||||
Foreign tax credits | 963 | 867 | |||||||||||||||||||||||
Employee compensation | 144 | 142 | |||||||||||||||||||||||
Postretirement benefits | 272 | 95 | |||||||||||||||||||||||
Other-than-temporary impairment losses | 298 | 291 | |||||||||||||||||||||||
Other, net | 29 | — | |||||||||||||||||||||||
Total | 2,579 | 2,269 | |||||||||||||||||||||||
Deferred income tax liabilities | |||||||||||||||||||||||||
Deferred policy acquisition costs | 367 | 356 | |||||||||||||||||||||||
Unremitted earnings of foreign subsidiaries | 1,075 | 970 | |||||||||||||||||||||||
Unrealized appreciation of investments | 944 | 660 | |||||||||||||||||||||||
Other invested assets | 208 | 184 | |||||||||||||||||||||||
Other, net | — | 52 | |||||||||||||||||||||||
Total | 2,594 | 2,222 | |||||||||||||||||||||||
Net deferred income tax asset (liability) | $ | (15 | ) | $ | 47 | ||||||||||||||||||||
Deferred income tax assets were established related to the expected future U.S. tax benefit of losses incurred by a foreign subsidiary of the Corporation. Realization of these deferred tax assets depends on the subsidiary’s ability to generate sufficient taxable income in future periods. A valuation allowance of $13 million was recorded at December 31, 2014 and 2013 to reflect management’s assessment that the realization of a portion of the deferred tax assets is uncertain due to the inability of the foreign subsidiary to generate sufficient taxable income in the near term. Although realization of the remaining deferred tax assets is not assured, management believes it is more likely than not that such deferred tax assets will be realized. | |||||||||||||||||||||||||
(d) Chubb and its U.S. subsidiaries file a consolidated federal income tax return with the U.S. Internal Revenue Service (IRS). The Corporation also files income tax returns with various state and foreign tax authorities. The U.S. income tax returns for years prior to 2010 are no longer subject to examination by the IRS. The examination of the U.S. income tax returns for 2010 and 2011 is expected to be completed in 2015. Management does not anticipate any assessments for tax years that remain subject to examination that would have a material effect on the Corporation’s financial position or results of operations. |
Reinsurance
Reinsurance | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Insurance [Abstract] | |||||||||||||
Reinsurance | (8) Reinsurance | ||||||||||||
In the ordinary course of business, the P&C Group assumes and cedes reinsurance with other insurance companies. Reinsurance is ceded to provide greater diversification of risk and to limit the P&C Group’s maximum net loss arising from large risks or catastrophic events. | |||||||||||||
A large portion of the P&C Group’s ceded reinsurance is effected under contracts known as treaties under which all risks meeting prescribed criteria are automatically covered. Most of these arrangements consist of excess of loss and catastrophe contracts that protect against a specified part or all of certain types of losses over stipulated amounts arising from any one occurrence or event. In certain circumstances, reinsurance is also effected by negotiation on individual risks. | |||||||||||||
Ceded reinsurance contracts do not relieve the P&C Group of the primary obligation to its policyholders. Thus, an exposure exists with respect to reinsurance ceded to the extent that any reinsurer is unable or unwilling to meet its obligations assumed under the reinsurance contracts. The P&C Group monitors the financial strength of its reinsurers on an ongoing basis. | |||||||||||||
Premiums earned and insurance losses and loss expenses are reported net of reinsurance in the consolidated statements of income. | |||||||||||||
The effect of reinsurance on the premiums written and earned of the P&C Group was as follows: | |||||||||||||
Years Ended December 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in millions) | |||||||||||||
Direct premiums written | $ | 12,976 | $ | 12,804 | $ | 12,647 | |||||||
Assumed reinsurance | 596 | 503 | 423 | ||||||||||
Ceded reinsurance | (980 | ) | (1,083 | ) | (1,200 | ) | |||||||
Net premiums written | $ | 12,592 | $ | 12,224 | $ | 11,870 | |||||||
Direct premiums earned | $ | 12,776 | $ | 12,717 | $ | 12,596 | |||||||
Assumed reinsurance | 562 | 476 | 422 | ||||||||||
Ceded reinsurance | (1,010 | ) | (1,127 | ) | (1,180 | ) | |||||||
Net premiums earned | $ | 12,328 | $ | 12,066 | $ | 11,838 | |||||||
Ceded losses and loss expenses, which reduce losses and loss expenses incurred, were $273 million, $400 million and $586 million in 2014, 2013 and 2012, respectively. |
StockBased_Employee_Compensati
Stock-Based Employee Compensation Plans | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Stock-Based Employee Compensation Plans | (9) Stock-Based Employee Compensation Plans | ||||||||||||||||
The Corporation has a stock-based employee compensation plan, The Chubb Corporation Long-Term Incentive Plan. The compensation cost with respect to the plan was $85 million, $89 million and $84 million in 2014, 2013 and 2012, respectively. The total income tax benefit included in net income with respect to the stock-based compensation arrangement was $30 million, $31 million and $29 million in 2014, 2013 and 2012, respectively. | |||||||||||||||||
As of December 31, 2014, there was $78 million of unrecognized compensation cost related to nonvested awards. That cost is expected to be reflected in operating results over a weighted average period of 1.7 years. | |||||||||||||||||
The Long-Term Incentive Plan provides for the granting of restricted stock units, restricted stock, performance units, stock options and other stock-based awards to the Corporation’s employees. The maximum number of shares of Chubb’s common stock with respect to which stock-based awards may be granted under the plan most recently approved by shareholders is 7.4 million shares. Additional shares of Chubb’s common stock may also become available for grant in connection with the cancellation, forfeiture and/or settlement of awards previously granted. At December 31, 2014, 8.2 million shares were available for grant. | |||||||||||||||||
Restricted Stock Units, Performance Units and Restricted Stock | |||||||||||||||||
Restricted stock unit awards are payable in cash, in shares of Chubb’s common stock or in a combination of both. Restricted stock units are not considered to be outstanding shares of common stock, have no voting rights and are subject to forfeiture during the restriction period. Holders of restricted stock units may receive dividend equivalents. Performance unit awards are based on the achievement of performance goals over three year performance periods. Performance unit awards are payable in cash, in shares of Chubb’s common stock or in a combination of both. Restricted stock awards consist of shares of Chubb’s common stock granted at no cost to the employees. Shares of restricted stock become outstanding when granted, receive dividends and have voting rights. The shares are subject to forfeiture and to restrictions that prevent their sale or transfer during the restriction period. | |||||||||||||||||
An amount equal to the fair value at the date of grant of restricted stock unit awards and performance unit awards is expensed over the vesting period. The weighted average fair value per share of the restricted stock units granted was $86.67, $83.75 and $68.64 in 2014, 2013 and 2012, respectively. The weighted average fair value per share of the performance units granted was $76.32, $98.46 and $63.38 in 2014, 2013 and 2012, respectively. | |||||||||||||||||
Additional information with respect to restricted stock units and performance units is as follows: | |||||||||||||||||
Restricted Stock Units | Performance Units* | ||||||||||||||||
Number | Weighted Average | Number | Weighted Average | ||||||||||||||
of Shares | Grant Date | of Shares | Grant Date | ||||||||||||||
Fair Value | Fair Value | ||||||||||||||||
Nonvested, January 1, 2014 | 2,127,647 | $ | 70.23 | 861,141 | $ | 79.87 | |||||||||||
Granted | 625,197 | 86.67 | 421,271 | 76.32 | |||||||||||||
Vested** | (762,349 | ) | 60.53 | (456,176 | ) | 63.38 | |||||||||||
Forfeited | (82,551 | ) | 81.16 | (4,041 | ) | 77.87 | |||||||||||
Nonvested, December 31, 2014 | 1,907,944 | 79.02 | 822,195 | 87.21 | |||||||||||||
* | The number of shares earned may range from 0% to 200% of the performance units shown in the table above. | ||||||||||||||||
** | The performance units earned in 2014 were 35.2% of the vested shares shown in the table, or 160,574 shares. | ||||||||||||||||
The total fair value of restricted stock units that vested during 2014, 2013 and 2012 was $66 million, $72 million and $74 million, respectively. The total fair value of performance units that vested during 2014, 2013 and 2012 was $17 million, $64 million and $70 million, respectively. | |||||||||||||||||
Stock Options | |||||||||||||||||
Stock options are granted at exercise prices not less than the fair value of Chubb’s common stock on the date of grant. The terms and conditions upon which options become exercisable may vary among grants. Options expire no later than ten years from the date of grant. | |||||||||||||||||
An amount equal to the fair value of stock options at the date of grant is expensed over the vesting period. The weighted average fair value per stock option granted during 2014, 2013 and 2012 was $15.48, $14.95 and $11.95, respectively. The fair value of each stock option was estimated on the date of grant using the Black-Scholes option pricing model. | |||||||||||||||||
Additional information with respect to stock options is as follows: | |||||||||||||||||
Number | Weighted | Weighted Average | Aggregate | ||||||||||||||
of Shares | Average | Remaining | Intrinsic Value | ||||||||||||||
Exercise Price | Contractual Term | ||||||||||||||||
(in years) | (in millions) | ||||||||||||||||
Outstanding, January 1, 2014 | 251,687 | $ | 62.52 | ||||||||||||||
Granted | 65,605 | 86.59 | |||||||||||||||
Exercised | (54,932 | ) | 59.08 | ||||||||||||||
Forfeited | (6,949 | ) | 82.83 | ||||||||||||||
Outstanding, December 31, 2014 | 255,411 | 68.89 | 6.6 | $ | 9 | ||||||||||||
Exercisable, December 31, 2014 | 128,880 | 55.24 | 4.8 | 6 | |||||||||||||
The total intrinsic value of the stock options exercised during 2014, 2013 and 2012 was $2 million, $16 million and $40 million, respectively. The Corporation received cash of $3 million, $10 million and $47 million during 2014, 2013 and 2012, respectively, from the exercise of stock options. The tax benefit realized with respect to the exercise of stock options was $1 million, $5 million and $13 million during 2014, 2013 and 2012, respectively. |
Employee_Benefits
Employee Benefits | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||
Employee Benefits | (10) Employee Benefits | ||||||||||||||||||||||||
(a) The Corporation has several non-contributory defined benefit pension plans covering substantially all employees. Prior to 2001, benefits were generally based on an employee’s years of service and average compensation during the last five years of employment. Effective January 1, 2001, the Corporation changed the formula for providing pension benefits from the final average pay formula to a cash balance formula. Under the cash balance formula, a notional account is established for each employee, which is credited semi-annually with an amount equal to a percentage of eligible compensation based on age and years of service plus interest based on the account balance. Employees hired prior to 2001 will generally be eligible to receive vested benefits based on the higher of the final average pay or cash balance formulas. | |||||||||||||||||||||||||
The Corporation’s funding policy is to contribute amounts that meet regulatory requirements plus additional amounts determined by management based on actuarial valuations, market conditions and other factors. This may result in no contribution being made in a particular year. | |||||||||||||||||||||||||
The Corporation also provides certain other postretirement benefits, principally health care and life insurance, to retired employees and their beneficiaries and covered dependents. Substantially all employees hired before January 1, 1999 may become eligible for these benefits upon retirement if they meet minimum age and years of service requirements. Health care coverage is contributory. Retiree contributions vary based upon a retiree’s age, type of coverage and years of service with the Corporation. Life insurance coverage is non-contributory. | |||||||||||||||||||||||||
The Corporation funds a portion of the health care benefits obligation where such funding can be accomplished on a tax effective basis. Benefits are paid as covered expenses are incurred. | |||||||||||||||||||||||||
The funded status of the pension and other postretirement benefit plans at December 31, 2014 and 2013 was as follows: | |||||||||||||||||||||||||
Pension | Other | ||||||||||||||||||||||||
Benefits | Postretirement | ||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Benefit obligation, beginning of year | $ | 2,777 | $ | 2,894 | $ | 394 | $ | 470 | |||||||||||||||||
Service cost | 86 | 95 | 10 | 13 | |||||||||||||||||||||
Interest cost | 140 | 125 | 19 | 19 | |||||||||||||||||||||
Actuarial loss (gain) | 536 | (261 | ) | 74 | (97 | ) | |||||||||||||||||||
Benefits paid | (85 | ) | (75 | ) | (10 | ) | (11 | ) | |||||||||||||||||
Foreign currency translation effect | (19 | ) | (1 | ) | (2 | ) | — | ||||||||||||||||||
Benefit obligation, end of year | 3,435 | 2,777 | 485 | 394 | |||||||||||||||||||||
Plan assets at fair value, beginning of year | 2,717 | 2,305 | 130 | 96 | |||||||||||||||||||||
Actual return on plan assets | 240 | 409 | 12 | 27 | |||||||||||||||||||||
Employer contributions | 92 | 82 | 11 | 18 | |||||||||||||||||||||
Benefits paid | (85 | ) | (75 | ) | (10 | ) | (11 | ) | |||||||||||||||||
Foreign currency translation effect | (18 | ) | (4 | ) | — | — | |||||||||||||||||||
Plan assets at fair value, end of year | 2,946 | 2,717 | 143 | 130 | |||||||||||||||||||||
Funded status at end of year, included in other liabilities | $ | 489 | $ | 60 | $ | 342 | $ | 264 | |||||||||||||||||
Net actuarial loss (gain) and prior service cost included in accumulated other comprehensive income that were not yet recognized as components of net benefit costs at December 31, 2014 and 2013 were as follows: | |||||||||||||||||||||||||
Pension | Other | ||||||||||||||||||||||||
Benefits | Postretirement | ||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Net actuarial loss (gain) | $ | 842 | $ | 396 | $ | 58 | $ | (13 | ) | ||||||||||||||||
Prior service cost | 14 | 16 | 1 | 1 | |||||||||||||||||||||
$ | 856 | $ | 412 | $ | 59 | $ | (12 | ) | |||||||||||||||||
The accumulated benefit obligation for the pension plans was $2,923 million and $2,381 million at December 31, 2014 and 2013, respectively. The accumulated benefit obligation is the present value of pension benefits earned as of the measurement date based on employee service and compensation prior to that date. It differs from the pension benefit obligation in the table on the previous page in that the accumulated benefit obligation includes no assumptions regarding future compensation levels. | |||||||||||||||||||||||||
The weighted average assumptions used to determine the benefit obligations were as follows: | |||||||||||||||||||||||||
Pension Benefits | Other | ||||||||||||||||||||||||
Postretirement | |||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
Discount rate | 4.3 | % | 5.2 | % | 4.3 | % | 5.2 | % | |||||||||||||||||
Rate of compensation increase | 4.5 | 4.5 | — | — | |||||||||||||||||||||
The components of net pension and other postretirement benefit costs reflected in net income and other changes in plan assets and benefit obligations recognized in other comprehensive income for the years ended December 31, 2014, 2013 and 2012 were as follows: | |||||||||||||||||||||||||
Pension Benefits | Other | ||||||||||||||||||||||||
Postretirement Benefits | |||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Costs reflected in net income | |||||||||||||||||||||||||
Service cost | $ | 86 | $ | 95 | $ | 88 | $ | 10 | $ | 13 | $ | 12 | |||||||||||||
Interest cost | 140 | 125 | 124 | 19 | 19 | 20 | |||||||||||||||||||
Expected return on plan assets | (186 | ) | (165 | ) | (155 | ) | (9 | ) | (7 | ) | (6 | ) | |||||||||||||
Amortization of net actuarial loss and prior service cost and other | 35 | 90 | 80 | — | 3 | 3 | |||||||||||||||||||
$ | 75 | $ | 145 | $ | 137 | $ | 20 | $ | 28 | $ | 29 | ||||||||||||||
Changes in plan assets and benefit obligations recognized in other comprehensive income | |||||||||||||||||||||||||
Net actuarial loss (gain) | $ | 479 | $ | (505 | ) | $ | 139 | $ | 71 | $ | (117 | ) | $ | (11 | ) | ||||||||||
Amortization of net actuarial loss and prior service cost and other | (35 | ) | (90 | ) | (80 | ) | — | (3 | ) | (3 | ) | ||||||||||||||
$ | 444 | $ | (595 | ) | $ | 59 | $ | 71 | $ | (120 | ) | $ | (14 | ) | |||||||||||
The estimated aggregate net actuarial loss and prior service cost that will be amortized from accumulated other comprehensive income into net benefit costs during 2015 for the pension and other postretirement benefit plans is $65 million. | |||||||||||||||||||||||||
The weighted average assumptions used to determine net pension and other postretirement benefit costs were as follows: | |||||||||||||||||||||||||
Pension Benefits | Other | ||||||||||||||||||||||||
Postretirement Benefits | |||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Discount rate | 5.20% | 4.40% | 5.00% | 5.20% | 4.40% | 5.00% | |||||||||||||||||||
Rate of compensation increase | 4.5 | 4.5 | 4.5 | — | — | — | |||||||||||||||||||
Expected long term rate of return on plan assets | 7.5 | 7.5 | 7.75 | 7.5 | 7.5 | 7.75 | |||||||||||||||||||
The weighted average health care cost trend rate assumptions used to measure the expected cost of medical benefits were as follows: | |||||||||||||||||||||||||
December 31 | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Health care cost trend rate for next year | 7.3 | % | 7.6 | % | |||||||||||||||||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4.5 | 4.5 | |||||||||||||||||||||||
Year that the rate reaches the ultimate trend rate | 2028 | 2028 | |||||||||||||||||||||||
The health care cost trend rate assumption has a significant effect on the amount of the accumulated other postretirement benefit obligation and the net other postretirement benefit cost reported. To illustrate, a one percent increase in the trend rate for each year would increase the accumulated other postretirement benefit obligation at December 31, 2014 by approximately $92 million and the aggregate of the service and interest cost components of net other postretirement benefit cost for the year ended December 31, 2014 by approximately $5 million. A one percent decrease in the trend rate for each year would decrease the accumulated other postretirement benefit obligation at December 31, 2014 by approximately $73 million and the aggregate of the service and interest cost components of net other postretirement benefit cost for the year ended December 31, 2014 by approximately $4 million. | |||||||||||||||||||||||||
The long term objective of the pension plan is to provide sufficient funding to cover expected benefit obligations, while assuming a prudent level of portfolio risk. The assets of the pension plan are invested, either directly or through pooled funds, in a diversified portfolio of predominately U.S. equity securities and fixed maturities. The Corporation seeks to obtain a rate of return that over time equals or exceeds the returns of the broad markets in which the plan assets are invested. The target allocation of plan assets is 55% to 65% invested in equity securities, with the remainder primarily invested in fixed maturities. The Corporation rebalances its pension assets to the target allocation as market conditions permit. The Corporation determined the expected long term rate of return assumption for each asset class based on an analysis of the historical returns and the expectations for future returns. The expected long term rate of return for the portfolio is a weighted aggregation of the expected returns for each asset class. | |||||||||||||||||||||||||
The fair values of the pension plan assets were as follows: | |||||||||||||||||||||||||
December 31 | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Short term investments | $ | 48 | $ | 37 | |||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||
U.S. government and government agency and authority obligations | 209 | 224 | |||||||||||||||||||||||
Corporate bonds | 419 | 371 | |||||||||||||||||||||||
Foreign government and government agency obligations | 137 | 104 | |||||||||||||||||||||||
Mortgage-backed securities | 228 | 217 | |||||||||||||||||||||||
Total fixed maturities | 993 | 916 | |||||||||||||||||||||||
Equity securities | 1,850 | 1,718 | |||||||||||||||||||||||
Other assets | 55 | 46 | |||||||||||||||||||||||
$ | 2,946 | $ | 2,717 | ||||||||||||||||||||||
At December 31, 2014 and 2013, pension plan assets invested in pooled funds had a fair value of $1,556 million and $1,425 million, respectively. | |||||||||||||||||||||||||
At December 31, 2014 and 2013, other postretirement benefit plan assets were invested in pooled funds and had a fair value of $143 million and $130 million, respectively. | |||||||||||||||||||||||||
The estimated benefits expected to be paid in each of the next five years and in the aggregate for the following five years are as follows: | |||||||||||||||||||||||||
Years Ending December 31 | Pension | Other | |||||||||||||||||||||||
Benefits | Postretirement | ||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
2015 | $ | 105 | $ | 12 | |||||||||||||||||||||
2016 | 115 | 14 | |||||||||||||||||||||||
2017 | 151 | 15 | |||||||||||||||||||||||
2018 | 132 | 17 | |||||||||||||||||||||||
2019 | 143 | 18 | |||||||||||||||||||||||
2020-2024 | 868 | 117 | |||||||||||||||||||||||
(b) The Corporation has a defined contribution benefit plan, the Capital Accumulation Plan, in which substantially all employees are eligible to participate. Under this plan, the employer makes matching contributions equal to 100% of each eligible employee’s pre-tax elective contributions, up to 4% of the employee’s eligible compensation. Contributions are invested at the election of the employee in Chubb’s common stock or in various other investment funds. The expense recognized with respect to the plan was $30 million, $29 million and $26 million in 2014, 2013 and 2012, respectively. |
Comprehensive_Income
Comprehensive Income | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||
Comprehensive Income | (11) Comprehensive Income | ||||||||||||||||||||||||||||||||||||
Comprehensive income is defined as all changes in shareholders’ equity, except those arising from transactions with shareholders. Comprehensive income includes net income and other comprehensive income or loss, which for the Corporation consists of changes in unrealized appreciation or depreciation of investments carried at fair value, changes in unrealized other-than-temporary impairment losses of fixed maturities, changes in postretirement benefit costs not yet recognized in net income and changes in foreign currency translation gains or losses. | |||||||||||||||||||||||||||||||||||||
The components of other comprehensive income or loss were as follows: | |||||||||||||||||||||||||||||||||||||
Years Ended December 31 | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
Before | Income | Net of | Before | Income | Net of | Before | Income | Net of | |||||||||||||||||||||||||||||
Tax | Tax | Tax | Tax | Tax | Tax | Tax | Tax | Tax | |||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||
Net unrealized holding gains (losses) arising | $ | 1,032 | $ | 361 | $ | 671 | $ | (1,000 | ) | $ | (350 | ) | $ | (650 | ) | $ | 556 | $ | 195 | $ | 361 | ||||||||||||||||
during the year | |||||||||||||||||||||||||||||||||||||
Unrealized other-than-temporary | — | — | — | — | — | — | (2 | ) | (1 | ) | (1 | ) | |||||||||||||||||||||||||
impairment losses arising during the year | |||||||||||||||||||||||||||||||||||||
Reclassification adjustment for net realized | 220 | 77 | 143 | 212 | 74 | 138 | 127 | 44 | 83 | ||||||||||||||||||||||||||||
gains included in net income | |||||||||||||||||||||||||||||||||||||
Net unrealized gains (losses) recognized in other comprehensive income or loss | 812 | 284 | 528 | (1,212 | ) | (424 | ) | (788 | ) | 427 | 150 | 277 | |||||||||||||||||||||||||
Postretirement benefit gain (loss) not yet | (550 | ) | (192 | ) | (358 | ) | 622 | 218 | 404 | (128 | ) | (45 | ) | (83 | ) | ||||||||||||||||||||||
recognized in net income arising during the year | |||||||||||||||||||||||||||||||||||||
Reclassification adjustment for the | (35 | ) | (13 | ) | (22 | ) | (93 | ) | (33 | ) | (60 | ) | (83 | ) | (30 | ) | (53 | ) | |||||||||||||||||||
amortization of net actuarial loss and prior service cost included in net income (a) | |||||||||||||||||||||||||||||||||||||
Net change in postretirement benefit | (515 | ) | (179 | ) | (336 | ) | 715 | 251 | 464 | (45 | ) | (15 | ) | (30 | ) | ||||||||||||||||||||||
costs not yet recognized in net income | |||||||||||||||||||||||||||||||||||||
Foreign currency translation losses | (180 | ) | (63 | ) | (117 | ) | (111 | ) | (39 | ) | (72 | ) | (16 | ) | (5 | ) | (11 | ) | |||||||||||||||||||
Total other comprehensive income (loss) | $ | 117 | $ | 42 | $ | 75 | $ | (608 | ) | $ | (212 | ) | $ | (396 | ) | $ | 366 | $ | 130 | $ | 236 | ||||||||||||||||
(a) | Postretirement benefit costs recognized in net income during the period are included among several of the loss and expense components presented in the consolidated statements of income. |
Commitments_and_Contingent_Lia
Commitments and Contingent Liabilities | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||
Commitments and Contingent Liabilities | (12) Commitments and Contingent Liabilities | ||||||||||||
(a) Chubb Financial Solutions (CFS), a wholly owned subsidiary of Chubb, participated in derivative financial instruments and has been in runoff since 2003. At December 31, 2014, CFS’s remaining derivative contracts were insignificant. | |||||||||||||
CFS’s aggregate exposure, or retained risk, from its derivative contracts is referred to as notional amount. Notional amounts are used to calculate the exchange of contractual cash flows and are not necessarily representative of the potential for gain or loss. Notional amounts are not recorded on the balance sheet. The notional amount of future obligations under CFS’s derivative contracts at December 31, 2014 and 2013 was approximately $55 million and $80 million, respectively. | |||||||||||||
Future obligations with respect to the derivative contracts are carried at fair value at the balance sheet date and are included in other liabilities. The fair value of future obligations under CFS’s derivative contracts at both December 31, 2014 and 2013 was approximately $2 million. | |||||||||||||
(b) The Corporation occupies office facilities under lease agreements that expire at various dates through 2029; such leases are generally renewed or replaced by other leases. Most facility leases contain renewal options for increments ranging from two to ten years. The Corporation also leases data processing, office and transportation equipment. All leases are operating leases. | |||||||||||||
Rent expense was as follows: | |||||||||||||
Years Ended | |||||||||||||
December 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in millions) | |||||||||||||
Office facilities | $ | 67 | $ | 71 | $ | 71 | |||||||
Equipment | 13 | 13 | 11 | ||||||||||
$ | 80 | $ | 84 | $ | 82 | ||||||||
At December 31, 2014, future minimum rental payments required under non-cancellable operating leases were as follows: | |||||||||||||
Years Ending December 31 | (in millions) | ||||||||||||
2015 | $ | 63 | |||||||||||
2016 | 52 | ||||||||||||
2017 | 47 | ||||||||||||
2018 | 40 | ||||||||||||
2019 | 30 | ||||||||||||
After 2019 | 81 | ||||||||||||
$ | 313 | ||||||||||||
(c) The Corporation had commitments totaling $860 million at December 31, 2014 to fund limited partnership investments. These commitments can be called by the partnerships (generally over a period of 5 years or less) to fund certain partnership expenses or the purchase of investments. |
Segments_Information
Segments Information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Segments Information | (13) Segments Information | ||||||||||||
The principal business of the Corporation is the sale of property and casualty insurance. The profitability of the property and casualty insurance business depends on the results of both underwriting operations and investments, which are viewed as two distinct operations. The underwriting operations are managed and evaluated separately from the investment function. | |||||||||||||
The P&C Group underwrites most lines of property and casualty insurance. Underwriting operations consist of four separate business units: personal insurance, commercial insurance, specialty insurance and reinsurance assumed. The personal segment targets the personal insurance market. The personal classes include automobile, homeowners and other personal coverages. The commercial segment includes those classes of business that are generally available in broad markets and are of a more commodity nature. Commercial classes include multiple peril, casualty, workers’ compensation and property and marine. The specialty segment includes those classes of business that are available in more limited markets since they require specialized underwriting and claim settlement. Specialty classes include professional liability coverages and surety. The reinsurance assumed business has been in runoff since the transfer of the ongoing reinsurance assumed business to a reinsurance company in 2005. | |||||||||||||
Corporate and other includes investment income earned on corporate invested assets, corporate expenses and the results of the Corporation’s non-insurance subsidiaries. | |||||||||||||
Performance of the property and casualty underwriting segments is measured based on statutory underwriting results. Statutory underwriting profit is arrived at by reducing premiums earned by losses and loss expenses incurred and statutory underwriting expenses incurred. Under statutory accounting principles applicable to property and casualty insurance companies, policy acquisition and other underwriting expenses are recognized immediately, not at the time premiums are earned. | |||||||||||||
Management uses underwriting results determined in accordance with GAAP to assess the overall performance of the underwriting operations. Underwriting income determined in accordance with GAAP is defined as premiums earned less losses and loss expenses incurred and GAAP underwriting expenses incurred. To convert statutory underwriting results to a GAAP basis, certain policy acquisition expenses are deferred and amortized over the period in which the related premiums are earned. | |||||||||||||
Investment income performance is measured based on investment income net of investment expenses, excluding realized investment gains and losses. | |||||||||||||
Distinct investment portfolios are not maintained for each underwriting segment. Property and casualty invested assets are available for payment of losses and expenses for all classes of business. Therefore, such assets and the related investment income are not allocated to underwriting segments. | |||||||||||||
Revenues, income before income tax and assets of each operating segment were as follows: | |||||||||||||
Years Ended December 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in millions) | |||||||||||||
Revenues | |||||||||||||
Property and casualty insurance | |||||||||||||
Premiums earned | |||||||||||||
Personal insurance | $ | 4,418 | $ | 4,214 | $ | 4,024 | |||||||
Commercial insurance | 5,281 | 5,237 | 5,144 | ||||||||||
Specialty insurance | 2,628 | 2,618 | 2,666 | ||||||||||
Total insurance | 12,327 | 12,069 | 11,834 | ||||||||||
Reinsurance assumed | 1 | (3 | ) | 4 | |||||||||
12,328 | 12,066 | 11,838 | |||||||||||
Investment income | 1,368 | 1,436 | 1,518 | ||||||||||
Total property and casualty insurance | 13,696 | 13,502 | 13,356 | ||||||||||
Corporate and other | 33 | 43 | 46 | ||||||||||
Realized investment gains, net | 369 | 402 | 193 | ||||||||||
Total revenues | $ | 14,098 | $ | 13,947 | $ | 13,595 | |||||||
Income (loss) before income tax | |||||||||||||
Property and casualty insurance | |||||||||||||
Underwriting | |||||||||||||
Personal insurance | $ | 370 | $ | 509 | $ | 192 | |||||||
Commercial insurance | 492 | 692 | 44 | ||||||||||
Specialty insurance | 495 | 406 | 262 | ||||||||||
Total insurance | 1,357 | 1,607 | 498 | ||||||||||
Reinsurance assumed | — | 9 | 47 | ||||||||||
1,357 | 1,616 | 545 | |||||||||||
Increase in deferred policy acquisition costs | 45 | 59 | 3 | ||||||||||
Underwriting income | 1,402 | 1,675 | 548 | ||||||||||
Investment income | 1,329 | 1,391 | 1,482 | ||||||||||
Other income (charges) | (4 | ) | 6 | 10 | |||||||||
Total property and casualty insurance | 2,727 | 3,072 | 2,040 | ||||||||||
Corporate and other | (235 | ) | (237 | ) | (237 | ) | |||||||
Realized investment gains, net | 369 | 402 | 193 | ||||||||||
Total income before income tax | $ | 2,861 | $ | 3,237 | $ | 1,996 | |||||||
December 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in millions) | |||||||||||||
Assets | |||||||||||||
Property and casualty insurance | $ | 49,297 | $ | 48,278 | $ | 49,441 | |||||||
Corporate and other | 2,078 | 2,248 | 2,830 | ||||||||||
Adjustments and eliminations | (89 | ) | (93 | ) | (87 | ) | |||||||
Total assets | $ | 51,286 | $ | 50,433 | $ | 52,184 | |||||||
The international business of the property and casualty insurance segments is conducted primarily through subsidiaries that operate solely outside of the United States. Their assets and liabilities are located principally in the countries where the insurance risks are written. International business is also written by branch offices of a U.S. subsidiary. | |||||||||||||
Revenues of the P&C Group by geographic area were as follows: | |||||||||||||
Years Ended December 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in millions) | |||||||||||||
Revenues | |||||||||||||
United States | $ | 10,448 | $ | 10,205 | $ | 9,996 | |||||||
International | 3,248 | ||||||||||||
3,297 | |||||||||||||
3,360 | |||||||||||||
Total | $ | 13,696 | $ | 13,502 | $ | 13,356 | |||||||
Fair_Values_of_Financial_Instr
Fair Values of Financial Instruments | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Values of Financial Instruments | (14) Fair Values of Financial Instruments | ||||||||||||||||
(a) Fair values of financial instruments are determined by management using valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Fair values are generally measured using quoted prices in active markets for identical assets or liabilities or other inputs, such as quoted prices for similar assets or liabilities, that are observable, either directly or indirectly. In those instances where observable inputs are not available, fair values are measured using unobservable inputs for the asset or liability. Unobservable inputs reflect the Corporation’s own assumptions about the assumptions that market participants would use in pricing the asset or liability and are developed based on the best information available in the circumstances. Fair value estimates derived from unobservable inputs are affected by the assumptions used, including the discount rates and the estimated amounts and timing of future cash flows. The derived fair value estimates cannot be substantiated by comparison to independent markets and are not necessarily indicative of the amounts that would be realized in a current market exchange. Certain financial instruments, particularly insurance contracts, are excluded from fair value disclosure requirements. | |||||||||||||||||
The methods and assumptions used to estimate the fair values of financial instruments are as follows: | |||||||||||||||||
(i) The carrying value of short term investments approximates fair value due to the short maturities of these investments. | |||||||||||||||||
(ii) Fair values of fixed maturities are determined by management, utilizing prices obtained from a third party, nationally recognized pricing service or, in the case of securities for which prices are not provided by a pricing service, from third party brokers. For fixed maturities that have quoted prices in active markets, market quotations are provided. For fixed maturities that do not trade on a daily basis, the pricing service and brokers provide fair value estimates using a variety of inputs including, but not limited to, benchmark yields, reported trades, broker/dealer quotes, issuer spreads, bids, offers, reference data, prepayment rates and measures of volatility. Management reviews on an ongoing basis the reasonableness of the methodologies used by the relevant pricing service and brokers. In addition, management, using the prices received for the securities from the pricing service and brokers, determines the aggregate portfolio price performance and reviews it against applicable indices. If management believes that significant discrepancies exist, it will discuss these with the relevant pricing service or broker to resolve the discrepancies. | |||||||||||||||||
(iii) Fair values of equity securities are determined by management, utilizing quoted market prices. | |||||||||||||||||
(iv) Fair values of long term debt issued by Chubb are determined by management, utilizing prices obtained from a third party, nationally recognized pricing service. | |||||||||||||||||
The carrying values and fair values of financial instruments were as follows: | |||||||||||||||||
December 31 | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||
Value | Value | Value | Value | ||||||||||||||
(in millions) | |||||||||||||||||
Assets | |||||||||||||||||
Invested assets | |||||||||||||||||
Short term investments | $ | 1,318 | $ | 1,318 | $ | 2,114 | $ | 2,114 | |||||||||
Fixed maturities (Note 2) | 38,780 | 38,780 | 37,091 | 37,091 | |||||||||||||
Equity securities | 1,964 | 1,964 | 1,810 | 1,810 | |||||||||||||
Liabilities | |||||||||||||||||
Long term debt (Note 6) | 3,300 | 4,013 | 3,300 | 3,806 | |||||||||||||
At December 31, 2014 and 2013, a pricing service provided fair value amounts for approximately 99% of the Corporation’s fixed maturities. The prices obtained from a pricing service and brokers generally are non-binding, but are reflective of current market transactions in the applicable financial instruments. | |||||||||||||||||
At December 31, 2014 and 2013, the Corporation held an insignificant amount of financial instruments in its investment portfolio for which a lack of market liquidity impacted the determination of fair value. | |||||||||||||||||
The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels as follows: | |||||||||||||||||
Level 1 — | Unadjusted quoted prices in active markets for identical financial instruments. | ||||||||||||||||
Level 2 — | Other inputs that are observable for the financial instrument, either directly or indirectly. | ||||||||||||||||
Level 3 — | Significant unobservable inputs. | ||||||||||||||||
The fair value of financial instruments categorized based upon the lowest level of input that was significant to the fair value measurement was as follows: | |||||||||||||||||
December 31, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(in millions) | |||||||||||||||||
Assets | |||||||||||||||||
Short term investments | $ | 206 | $ | 1,112 | $ | — | $ | 1,318 | |||||||||
Fixed maturities | |||||||||||||||||
Tax exempt | — | 19,769 | 3 | 19,772 | |||||||||||||
Taxable | |||||||||||||||||
U.S. government and government agency and authority obligations | — | 2,007 | — | 2,007 | |||||||||||||
Corporate bonds | — | 8,912 | 116 | 9,028 | |||||||||||||
Foreign government and government agency obligations | — | 6,663 | 9 | 6,672 | |||||||||||||
Residential mortgage-backed securities | — | 210 | 1 | 211 | |||||||||||||
Commercial mortgage-backed securities | — | 1,090 | — | 1,090 | |||||||||||||
— | 18,882 | 126 | 19,008 | ||||||||||||||
Total fixed maturities | — | 38,651 | 129 | 38,780 | |||||||||||||
Equity securities | 1,958 | — | 6 | 1,964 | |||||||||||||
$ | 2,164 | $ | 39,763 | $ | 135 | $ | 42,062 | ||||||||||
Liabilities | |||||||||||||||||
Long term debt | $ | — | $ | 4,013 | $ | — | $ | 4,013 | |||||||||
December 31, 2013 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(in millions) | |||||||||||||||||
Assets | |||||||||||||||||
Short term investments | $ | 399 | $ | 1,715 | $ | — | $ | 2,114 | |||||||||
Fixed maturities | |||||||||||||||||
Tax exempt | — | 18,416 | 5 | 18,421 | |||||||||||||
Taxable | |||||||||||||||||
U.S. government and government agency and authority obligations | — | 802 | — | 802 | |||||||||||||
Corporate bonds | — | 9,179 | 135 | 9,314 | |||||||||||||
Foreign government and government agency obligations | — | 6,881 | 9 | 6,890 | |||||||||||||
Residential mortgage-backed securities | — | 293 | 6 | 299 | |||||||||||||
Commercial mortgage-backed securities | — | 1,345 | 20 | 1,365 | |||||||||||||
— | 18,500 | 170 | 18,670 | ||||||||||||||
Total fixed maturities | — | 36,916 | 175 | 37,091 | |||||||||||||
Equity securities | 1,803 | — | 7 | 1,810 | |||||||||||||
$2,202 | $38,631 | $182 | $41,015 | ||||||||||||||
Liabilities | |||||||||||||||||
Long term debt | |||||||||||||||||
$ | — | $ | 3,806 | $ | — | $ | 3,806 | ||||||||||
(b) The methods and assumptions used to estimate the fair value of the Corporation’s pension plan and other postretirement benefit plan assets, other than assets invested in pooled funds, are similar to the methods and assumptions used for the Corporation’s other financial instruments. The fair value of pooled funds is based on the net asset value of the funds. | |||||||||||||||||
Based on the fair value hierarchy, the fair value of the Corporation’s pension plan assets categorized based upon the lowest level of input that was significant to the fair value measurement was as follows: | |||||||||||||||||
December 31, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(in millions) | |||||||||||||||||
Short term investments | $ | — | $ | 48 | $ | — | $ | 48 | |||||||||
Fixed maturities | |||||||||||||||||
U.S. government and government agency and authority obligations | — | 209 | — | 209 | |||||||||||||
Corporate bonds | — | 419 | — | 419 | |||||||||||||
Foreign government and government agency obligations | — | 137 | — | 137 | |||||||||||||
Mortgage-backed securities | — | 228 | — | 228 | |||||||||||||
Total fixed maturities | — | 993 | — | 993 | |||||||||||||
Equity securities | 629 | 1,221 | — | 1,850 | |||||||||||||
Other assets | 28 | 20 | 7 | 55 | |||||||||||||
$ | 657 | $ | 2,282 | $ | 7 | $ | 2,946 | ||||||||||
December 31, 2013 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(in millions) | |||||||||||||||||
Short term investments | $ | — | $ | 37 | $ | — | $ | 37 | |||||||||
Fixed maturities | |||||||||||||||||
U.S. government and government agency | — | 224 | — | 224 | |||||||||||||
and authority obligations | |||||||||||||||||
Corporate bonds | — | 370 | 1 | 371 | |||||||||||||
Foreign government and government | — | 104 | — | 104 | |||||||||||||
agency obligations | |||||||||||||||||
Mortgage-backed securities | — | 211 | 6 | 217 | |||||||||||||
Total fixed maturities | — | 909 | 7 | 916 | |||||||||||||
Equity securities | 573 | 1,145 | — | 1,718 | |||||||||||||
Other assets | 21 | 14 | 11 | 46 | |||||||||||||
$ | 594 | $ | 2,105 | $ | 18 | $ | 2,717 | ||||||||||
The fair value of the Corporation’s other postretirement benefit plan assets was $143 million and $130 million at December 31, 2014 and 2013, respectively. Based on the fair value hierarchy, the fair value of these assets was categorized as Level 1 based upon the lowest level of input that was significant to the fair value measurement. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Earnings Per Share | (15) Earnings Per Share | ||||||||||||
Basic earnings per share is computed by dividing net income by the weighted average shares outstanding during the year. The computation of diluted earnings per share reflects the potential dilutive effect, using the treasury stock method, of outstanding awards under stock-based employee compensation plans. | |||||||||||||
The following table sets forth the computation of basic and diluted earnings per share: | |||||||||||||
Years Ended December 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in millions except for per | |||||||||||||
share amounts) | |||||||||||||
Basic earnings per share: | |||||||||||||
Net income | $ | 2,100 | $ | 2,345 | $ | 1,545 | |||||||
Weighted average shares outstanding | 242.9 | 258.2 | 269.5 | ||||||||||
Basic earnings per share | $ | 8.65 | $ | 9.08 | $ | 5.73 | |||||||
Diluted earnings per share: | |||||||||||||
Net income | $ | 2,100 | $ | 2,345 | $ | 1,545 | |||||||
Weighted average shares outstanding | 242.9 | 258.2 | 269.5 | ||||||||||
Additional shares from assumed issuance of shares under stock-based compensation awards | 0.6 | 1.2 | 1.9 | ||||||||||
Weighted average shares and potential shares assumed outstanding for computing diluted earnings per share | 243.5 | 259.4 | 271.4 | ||||||||||
Diluted earnings per share | $ | 8.62 | $ | 9.04 | $ | 5.69 | |||||||
Shareholders_Equity
Shareholders' Equity | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||
Shareholders' Equity | (16) Shareholders’ Equity | ||||||||||||||||||||||||
(a) The authorized but unissued preferred shares may be issued in one or more series and the shares of each series shall have such rights as fixed by the Board of Directors. | |||||||||||||||||||||||||
(b) The activity of Chubb’s common stock was as follows: | |||||||||||||||||||||||||
Years Ended December 31 | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(number of shares) | |||||||||||||||||||||||||
Common stock issued | |||||||||||||||||||||||||
Balance, beginning and end of year | 371,980,460 | 371,980,460 | 371,980,460 | ||||||||||||||||||||||
Treasury stock | |||||||||||||||||||||||||
Balance, beginning of year | 123,673,969 | 110,217,445 | 99,519,509 | ||||||||||||||||||||||
Repurchase of shares | 16,893,455 | 14,887,701 | 13,094,640 | ||||||||||||||||||||||
Share activity under stock-based employee compensation plans | (1,016,353 | ) | (1,431,177 | ) | (2,396,704 | ) | |||||||||||||||||||
Balance, end of year | 139,551,071 | 123,673,969 | 110,217,445 | ||||||||||||||||||||||
Common stock outstanding, end of year | 232,429,389 | 248,306,491 | 261,763,015 | ||||||||||||||||||||||
(c) As of December 31, 2014, $52 million remained under the share repurchase authorization that was approved by the Board of Directors on January 30, 2014. On January 29, 2015, the Board of Directors authorized the repurchase of up to $1.3 billion of Chubb’s common stock. These authorizations have no expiration date. | |||||||||||||||||||||||||
(d) The property and casualty insurance subsidiaries are required to file annual statements with insurance regulatory authorities prepared on an accounting basis prescribed or permitted by such authorities (statutory basis). For such subsidiaries, statutory accounting principles differ in certain respects from GAAP. | |||||||||||||||||||||||||
A comparison of shareholders’ equity on a GAAP basis and policyholders’ surplus on a statutory basis is as follows: | |||||||||||||||||||||||||
December 31 | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
GAAP | Statutory | GAAP | Statutory | ||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
P&C Group | $ | 17,786 | $ | 15,127 | $ | 17,398 | $ | 15,024 | |||||||||||||||||
Corporate and other | (1,490 | ) | (1,301 | ) | |||||||||||||||||||||
$ | 16,296 | $ | 16,097 | ||||||||||||||||||||||
A comparison of GAAP and statutory net income (loss) is as follows: | |||||||||||||||||||||||||
Years Ended December 31 | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
GAAP | Statutory | GAAP | Statutory | GAAP | Statutory | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
P&C Group | $ | 2,330 | $ | 2,399 | $ | 2,480 | $ | 2,485 | $ | 1,791 | $ | 1,936 | |||||||||||||
Corporate and other | (230 | ) | (135 | ) | (246 | ) | |||||||||||||||||||
$ | 2,100 | $ | 2,345 | $ | 1,545 | ||||||||||||||||||||
At December 31, 2014, the aggregate statutory capital and surplus of the property and casualty insurance subsidiaries was $15.1 billion, of which $14.8 billion related to Federal Insurance Company (Federal). Federal is a direct subsidiary of Chubb and is the direct or indirect parent of most of Chubb’s other insurance subsidiaries. A risk-based capital formula is used by U.S. state regulatory authorities to identify insurance companies that may be undercapitalized and that may merit regulatory attention. The risk-based capital requirement level is calculated as two times the authorized control level risk-based capital and is the level at or below which company or state regulatory action would be required. At December 31, 2014, the risk-based capital requirement level for Federal was $5.0 billion. | |||||||||||||||||||||||||
(e) As a holding company, Chubb’s ability to continue to pay dividends to shareholders and to satisfy its obligations, including the payment of interest and principal on debt obligations, relies on the availability of liquid assets, which is dependent in large part on the dividend paying ability of its property and casualty insurance subsidiaries. The Corporation’s property and casualty insurance subsidiaries are subject to laws and regulations in the jurisdictions in which they operate that restrict the amount of dividends they may pay without the prior approval of regulatory authorities. The restrictions are generally based on net income and on certain levels of policyholders’ surplus as determined in accordance with statutory accounting principles. Dividends in excess of such thresholds are considered “extraordinary” and require prior regulatory approval. During 2014, these subsidiaries paid dividends of $2.0 billion to Chubb. | |||||||||||||||||||||||||
The maximum dividend distribution that may be made by the property and casualty insurance subsidiaries to Chubb during 2015 without prior regulatory approval is approximately $1.9 billion. |
Quarterly_Financial_Data
Quarterly Financial Data | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Quarterly Financial Data | QUARTERLY FINANCIAL DATA | ||||||||||||||||||||||||||||||||
Summarized unaudited quarterly financial data for 2014 and 2013 are shown below. In management’s opinion, the interim financial data contain all adjustments, consisting of normal recurring items, necessary to present fairly the results of operations for the interim periods. | |||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
March 31 | June 30 | September 30 | December 31 | ||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
(in millions except for per share amounts) | |||||||||||||||||||||||||||||||||
Revenues | $ | 3,506 | $ | 3,517 | $ | 3,542 | $ | 3,551 | $ | 3,574 | $ | 3,403 | $ | 3,476 | $ | 3,476 | |||||||||||||||||
Losses and expenses | 2,903 | 2,601 | 2,864 | 2,755 | 2,756 | 2,664 | 2,714 | 2,690 | |||||||||||||||||||||||||
Federal and foreign income tax | 154 | 260 | 179 | 217 | 224 | 198 | 204 | 217 | |||||||||||||||||||||||||
Net income | $ | 449 | $ | 656 | $ | 499 | $ | 579 | $ | 594 | $ | 541 | $ | 558 | $ | 569 | |||||||||||||||||
Basic earnings per share | $ | 1.81 | $ | 2.49 | $ | 2.03 | $ | 2.22 | $ | 2.47 | $ | 2.11 | $ | 2.35 | $ | 2.25 | |||||||||||||||||
Diluted earnings per share | $ | 1.8 | $ | 2.48 | $ | 2.03 | $ | 2.21 | $ | 2.47 | $ | 2.1 | $ | 2.35 | $ | 2.24 | |||||||||||||||||
Underwriting ratios | |||||||||||||||||||||||||||||||||
Losses to premiums earned | 61.1 | % | 52.3 | % | 58.7 | % | 56.7 | % | 54 | % | 53 | % | 53.8 | % | 54.7 | % | |||||||||||||||||
Expenses to premiums written | 32.1 | 32.3 | 31.3 | 32.1 | 31.8 | 32.7 | 30.5 | 30.8 | |||||||||||||||||||||||||
Combined | 93.2 | % | 84.6 | % | 90 | % | 88.8 | % | 85.8 | % | 85.7 | % | 84.3 | % | 85.5 | % | |||||||||||||||||
Consolidated_Summary_of_Invest
Consolidated Summary of Investments - Other Than Investments in Related Parties | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Summary of Investments, Other than Investments in Related Parties [Abstract] | |||||||||||||
Consolidated Summary of Investments - Other Than Investments in Related Parties | THE CHUBB CORPORATION | ||||||||||||
Schedule I | |||||||||||||
CONSOLIDATED SUMMARY OF INVESTMENTS — OTHER THAN INVESTMENTS IN RELATED PARTIES | |||||||||||||
(in millions) | |||||||||||||
December 31, 2014 | |||||||||||||
Type of Investment | Cost or | Fair | Amount | ||||||||||
Amortized | Value | at Which | |||||||||||
Cost | Shown in the | ||||||||||||
Balance Sheet | |||||||||||||
Short term investments | $ | 1,318 | $ | 1,318 | $ | 1,318 | |||||||
Fixed maturities | |||||||||||||
United States Government and government agencies and authorities | 1,593 | 1,612 | 1,612 | ||||||||||
States, municipalities and political subdivisions | 18,983 | 20,167 | 20,167 | ||||||||||
Foreign government and government agencies | 6,380 | 6,672 | 6,672 | ||||||||||
Public utilities | 1,065 | 1,148 | 1,148 | ||||||||||
All other corporate bonds | 7,676 | 7,880 | 7,880 | ||||||||||
Residential mortgage-backed securities | 192 | 211 | 211 | ||||||||||
Commercial mortgage-backed securities | 1,069 | 1,090 | 1,090 | ||||||||||
Total fixed maturities | 36,958 | 38,780 | 38,780 | ||||||||||
Equity securities | |||||||||||||
Common stocks | |||||||||||||
Public utilities | 114 | 216 | 216 | ||||||||||
Banks, trusts and insurance companies | 101 | 185 | 185 | ||||||||||
Industrial, miscellaneous and other | 835 | 1,515 | 1,515 | ||||||||||
Total common stocks | 1,050 | 1,916 | 1,916 | ||||||||||
Non-redeemable preferred stocks | 39 | 48 | 48 | ||||||||||
Total equity securities | 1,089 | 1,964 | 1,964 | ||||||||||
Other invested assets | 1,423 | 1,423 | 1,423 | ||||||||||
Total invested assets | $ | 40,788 | $ | 43,485 | $ | 43,485 | |||||||
Condensed_Financial_Informatio
Condensed Financial Information of Parent Company | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||
Condensed Financial Information of Parent Company | THE CHUBB CORPORATION | ||||||||||||
Schedule II | |||||||||||||
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | |||||||||||||
BALANCE SHEETS — PARENT COMPANY ONLY | |||||||||||||
(in millions) | |||||||||||||
December 31 | |||||||||||||
2014 | 2013 | ||||||||||||
Assets | |||||||||||||
Invested Assets | |||||||||||||
Short Term Investments | $ | 574 | $ | 856 | |||||||||
Taxable Fixed Maturities (cost $1,213 and $1,095) | 1,226 | 1,110 | |||||||||||
Equity Securities (cost $— and $—) | — | 2 | |||||||||||
TOTAL INVESTED ASSETS | 1,800 | 1,968 | |||||||||||
Investment in Consolidated Subsidiaries | 17,838 | 17,455 | |||||||||||
Other Assets | 168 | 165 | |||||||||||
TOTAL ASSETS | $ | 19,806 | $ | 19,588 | |||||||||
Liabilities | |||||||||||||
Long Term Debt | $ | 3,300 | $ | 3,300 | |||||||||
Dividend Payable to Shareholders | 117 | 110 | |||||||||||
Accrued Expenses and Other Liabilities | 93 | 81 | |||||||||||
TOTAL LIABILITIES | 3,510 | 3,491 | |||||||||||
Shareholders’ Equity | |||||||||||||
Preferred Stock — Authorized 8,000,000 Shares; | — | — | |||||||||||
$1 Par Value; Issued — None | |||||||||||||
Common Stock — Authorized 1,200,000,000 Shares; | 372 | 372 | |||||||||||
$1 Par Value; Issued 371,980,460 Shares | |||||||||||||
Paid-In Surplus | 171 | 171 | |||||||||||
Retained Earnings | 23,520 | 21,902 | |||||||||||
Accumulated Other Comprehensive Income | 1,110 | 1,035 | |||||||||||
Treasury Stock, at Cost — 139,551,071 and 123,673,969 Shares | (8,877 | ) | (7,383 | ) | |||||||||
TOTAL SHAREHOLDERS’ EQUITY | 16,296 | 16,097 | |||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 19,806 | $ | 19,588 | |||||||||
The condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto. | |||||||||||||
THE CHUBB CORPORATION | |||||||||||||
Schedule II | |||||||||||||
(continued) | |||||||||||||
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | |||||||||||||
STATEMENTS OF INCOME — PARENT COMPANY ONLY | |||||||||||||
(in millions) | |||||||||||||
Years Ended December 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Revenues | |||||||||||||
Investment Income | $ | 26 | $ | 29 | $ | 38 | |||||||
Other Revenues | — | 6 | — | ||||||||||
Realized Investment Gains (Losses), Net | 4 | 99 | (6 | ) | |||||||||
TOTAL REVENUES | 30 | 134 | 32 | ||||||||||
Expenses | |||||||||||||
Corporate Expenses | 249 | 262 | 268 | ||||||||||
Investment Expenses | 3 | 4 | 2 | ||||||||||
Other Expenses | 3 | 8 | — | ||||||||||
TOTAL EXPENSES | 255 | 274 | 270 | ||||||||||
Loss before Federal and Foreign Income Tax and Equity in Net Income of Consolidated Subsidiaries | (225 | ) | (140 | ) | (238 | ) | |||||||
Federal and Foreign Income Tax | 1 | — | 4 | ||||||||||
Loss before Equity in Net Income of Consolidated Subsidiaries | (226 | ) | (140 | ) | (242 | ) | |||||||
Equity in Net Income of Consolidated Subsidiaries | 2,326 | 2,485 | 1,787 | ||||||||||
NET INCOME | 2,100 | 2,345 | 1,545 | ||||||||||
Other Comprehensive Income (Loss), Net of Tax | 75 | (396 | ) | 236 | |||||||||
COMPREHENSIVE INCOME | $ | 2,175 | $ | 1,949 | $ | 1,781 | |||||||
Chubb and its U.S. subsidiaries file a consolidated federal income tax return. The federal income tax provision represents an allocation under the Corporation’s tax allocation agreements. | |||||||||||||
The condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto. | |||||||||||||
THE CHUBB CORPORATION | |||||||||||||
Schedule II | |||||||||||||
(continued) | |||||||||||||
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | |||||||||||||
STATEMENTS OF CASH FLOWS — PARENT COMPANY ONLY | |||||||||||||
(in millions) | |||||||||||||
Years Ended December 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Cash Flows from Operating Activities | |||||||||||||
Net Income | $ | 2,100 | $ | 2,345 | $ | 1,545 | |||||||
Adjustments to Reconcile Net Income to Net Cash Used in Operating Activities | |||||||||||||
Equity in Net Income of Consolidated Subsidiaries | (2,326 | ) | (2,485 | ) | (1,787 | ) | |||||||
Realized Investment Losses (Gains), Net | (4 | ) | (99 | ) | 6 | ||||||||
Other, Net | 9 | 21 | 57 | ||||||||||
NET CASH USED IN OPERATING ACTIVITIES | (221 | ) | (218 | ) | (179 | ) | |||||||
Cash Flows from Investing Activities | |||||||||||||
Proceeds from Fixed Maturities | |||||||||||||
Sales | 382 | 227 | 24 | ||||||||||
Maturities, Calls and Redemptions | 46 | 150 | 673 | ||||||||||
Proceeds from Sales of Equity Securities | 2 | 296 | — | ||||||||||
Purchases of Fixed Maturities | (551 | ) | (198 | ) | (1,046 | ) | |||||||
Investments in Other Invested Assets, Net | — | 22 | — | ||||||||||
Decrease in Short Term Investments, Net | 282 | 85 | 89 | ||||||||||
Dividends Received from Consolidated Insurance Subsidiaries | 2,021 | 1,564 | 1,760 | ||||||||||
Distributions Received from Consolidated Non-Insurance Subsidiaries | 1 | 1 | 1 | ||||||||||
Other, Net | 38 | 46 | 1 | ||||||||||
NET CASH PROVIDED BY INVESTING ACTIVITIES | 2,221 | 2,193 | 1,502 | ||||||||||
Cash Flows from Financing Activities | |||||||||||||
Repayment of Long Term Debt | — | (275 | ) | — | |||||||||
Proceeds from Issuance of Common Stock Under Stock-Based Employee Compensation Plans | 22 | 38 | 74 | ||||||||||
Repurchase of Shares | (1,547 | ) | (1,288 | ) | (959 | ) | |||||||
Dividends Paid to Shareholders | (475 | ) | (450 | ) | (438 | ) | |||||||
NET CASH USED IN FINANCING ACTIVITIES | (2,000 | ) | (1,975 | ) | (1,323 | ) | |||||||
Net Increase in Cash | — | — | — | ||||||||||
Cash at Beginning of Year | — | — | — | ||||||||||
CASH AT END OF YEAR | $ | — | $ | — | $ | — | |||||||
The condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto. | |||||||||||||
In 2013, Chubb exchanged its holdings of common stock and warrants of Alterra Capital Holdings Limited, with a cost basis of $177 million and a carrying value of $63 million, respectively, for common stock of Markel Corporation, valued at $226 million, and cash of $98 million, as a result of a business combination. The noncash portions of the transaction have been excluded from the statement of cash flows. |
Consolidated_Supplementary_Ins
Consolidated Supplementary Insurance Information | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Supplemental Information for Property, Casualty Insurance Underwriters [Abstract] | |||||||||||||||||||||||||||||||||||||
Consolidated Supplementary Insurance Information | THE CHUBB CORPORATION | ||||||||||||||||||||||||||||||||||||
Schedule III | |||||||||||||||||||||||||||||||||||||
CONSOLIDATED SUPPLEMENTARY INSURANCE INFORMATION | |||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||
December 31 | Year Ended December 31 | ||||||||||||||||||||||||||||||||||||
Segment | Deferred | Unpaid | Unearned | Premiums | Net | Insurance | Amortization | Other | Premiums | ||||||||||||||||||||||||||||
Policy | Losses | Premiums | Earned | Investment | Losses | of Deferred | Insurance | Written | |||||||||||||||||||||||||||||
Acquisition | Income (a) | Policy | Operating | ||||||||||||||||||||||||||||||||||
Costs | Acquisition | Costs and | |||||||||||||||||||||||||||||||||||
Costs | Expenses (b) | ||||||||||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||||||||
Property and Casualty Insurance | |||||||||||||||||||||||||||||||||||||
Personal | $ | 517 | $ | 2,272 | $ | 2,278 | $ | 4,418 | $ | 2,540 | $ | 1,053 | $ | 438 | $ | 4,508 | |||||||||||||||||||||
Commercial | 504 | 13,161 | 2,876 | 5,281 | 3,111 | 995 | 663 | 5,402 | |||||||||||||||||||||||||||||
Specialty | 263 | 6,847 | 1,426 | 2,628 | 1,333 | 497 | 295 | 2,681 | |||||||||||||||||||||||||||||
Reinsurance Assumed | — | 398 | 1 | 1 | 1 | 3 | (3 | ) | 1 | ||||||||||||||||||||||||||||
Investments | $ | 1,329 | |||||||||||||||||||||||||||||||||||
$ | 1,284 | $ | 22,678 | $ | 6,581 | $ | 12,328 | $ | 1,329 | $ | 6,985 | $ | 2,548 | $ | 1,393 | $ | 12,592 | ||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||||||||||
Property and Casualty Insurance | |||||||||||||||||||||||||||||||||||||
Personal | $ | 505 | $ | 2,235 | $ | 2,216 | $ | 4,214 | $ | 2,224 | $ | 982 | $ | 465 | $ | 4,322 | |||||||||||||||||||||
Commercial | 493 | 13,147 | 2,792 | 5,237 | 2,891 | 970 | 665 | 5,273 | |||||||||||||||||||||||||||||
Specialty | 257 | 7,307 | 1,412 | 2,618 | 1,417 | 502 | 287 | 2,633 | |||||||||||||||||||||||||||||
Reinsurance Assumed | — | 457 | 3 | (3 | ) | (12 | ) | — | — | (4 | ) | ||||||||||||||||||||||||||
Investments | $ | 1,391 | |||||||||||||||||||||||||||||||||||
$ | 1,255 | $ | 23,146 | $ | 6,423 | $ | 12,066 | $ | 1,391 | $ | 6,520 | $ | 2,454 | $ | 1,417 | $ | 12,224 | ||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||||||||||
Property and Casualty Insurance | |||||||||||||||||||||||||||||||||||||
Personal | $ | 477 | $ | 2,493 | $ | 2,133 | $ | 4,024 | $ | 2,417 | $ | 942 | $ | 458 | $ | 4,125 | |||||||||||||||||||||
Commercial | 477 | 13,288 | 2,794 | 5,144 | 3,512 | 970 | 620 | 5,174 | |||||||||||||||||||||||||||||
Specialty | 252 | 7,622 | 1,429 | 2,666 | 1,622 | 499 | 293 | 2,568 | |||||||||||||||||||||||||||||
Reinsurance Assumed | — | 560 | 5 | 4 | (44 | ) | — | 1 | 3 | ||||||||||||||||||||||||||||
Investments | $ | 1,482 | |||||||||||||||||||||||||||||||||||
$ | 1,206 | $ | 23,963 | $ | 6,361 | $ | 11,838 | $ | 1,482 | $ | 7,507 | $ | 2,411 | $ | 1,372 | $ | 11,870 | ||||||||||||||||||||
(a) | Property and casualty assets are available for payment of losses and expenses for all classes of business; therefore, such assets and the related investment income have not been allocated to the underwriting segments. | ||||||||||||||||||||||||||||||||||||
(b) | Other insurance operating costs and expenses does not include other income and charges. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Basis of Presentation | (a) | Basis of Presentation |
The Chubb Corporation (Chubb) is a holding company with subsidiaries principally engaged in the property and casualty insurance business. The property and casualty insurance subsidiaries (the P&C Group) underwrite most lines of property and casualty insurance in the United States, Canada, Europe, Australia and parts of Latin America and Asia. The geographic distribution of property and casualty business in the United States is broad with a particularly strong market presence in the Northeast. | ||
The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and include the accounts of Chubb and its subsidiaries (collectively, the Corporation). Significant intercompany transactions have been eliminated in consolidation. The results of our operations in Australia, Brazil and other smaller foreign locations are recorded on a three month lag in our consolidated financial statements. Specific events having significant financial impact that occur during the lag period are included in the current period results. | ||
The consolidated financial statements include amounts based on informed estimates and judgments of management for transactions that are not yet complete. Such estimates and judgments affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||
Certain amounts in the consolidated financial statements for prior years have been reclassified to conform with the 2014 presentation. | ||
Invested Assets | (b) | Invested Assets |
Short term investments, which have an original maturity of one year or less, are carried at amortized cost, which approximates fair value. | ||
Fixed maturities, which include taxable and tax exempt bonds, are classified as available-for-sale and carried at fair value as of the balance sheet date. Taxable bonds include U.S. government and government agency and authority obligations, including taxable bonds issued by states, municipalities and political subdivisions within the United States, and foreign government and government agency obligations, corporate bonds and mortgage-backed securities. Corporate bonds include redeemable preferred stocks. Tax exempt bonds consist of bonds issued by states, municipalities and political subdivisions within the United States. Fixed maturities are purchased to support the investment strategies of the Corporation. These strategies are developed based on many factors including rate of return, maturity, credit risk, tax considerations and regulatory requirements. Fixed maturities may be sold prior to maturity to support the investment strategies of the Corporation. | ||
Premiums and discounts arising from the purchase of fixed maturities are amortized using the interest method over the estimated remaining term of the securities. For mortgage-backed securities, prepayment assumptions are reviewed periodically and revised as necessary. | ||
Equity securities, which include common stocks and non-redeemable preferred stocks, are carried at fair value as of the balance sheet date. | ||
Unrealized appreciation or depreciation, including unrealized other-than-temporary impairment losses, of fixed maturities and equity securities carried at fair value is excluded from net income and is included, net of applicable deferred income tax, in other comprehensive income. | ||
Other invested assets primarily include private equity limited partnerships, which are carried at the Corporation’s equity in the net assets of the partnerships based on valuations provided by the manager of each partnership. As a result of the timing of the receipt of valuation data from the investment managers, these investments are generally reported on a three month lag. Changes in the Corporation’s equity in the net assets of the partnerships are included in net income as realized investment gains or losses. Other invested assets also include warrants, which are carried at fair value as of the balance sheet date. Changes in the fair value of warrants are included in net income as realized investment gains or losses. | ||
Realized gains and losses on the sale of investments are determined on the basis of the cost of the specific investments sold and are included in net income. | ||
When the fair value of an investment is lower than its cost, an assessment is made to determine whether the decline is temporary or other than temporary. The assessment of other-than-temporary impairment of fixed maturities and equity securities is based on both quantitative criteria and qualitative information. A number of factors are considered including, but not limited to, the length of time and the extent to which the fair value has been less than the cost, the financial condition and near term prospects of the issuer, whether the issuer is current on contractually obligated interest and principal payments, general market conditions and industry or sector specific factors. | ||
In determining whether fixed maturities are other than temporarily impaired, the Corporation is required to recognize an other-than-temporary impairment loss when it concludes it has the intent to sell or it is more likely than not it will be required to sell an impaired fixed maturity before the security recovers to its amortized cost value or it is likely it will not recover the entire amortized cost value of an impaired security. If the Corporation has the intent to sell or it is more likely than not that the Corporation will be required to sell an impaired fixed maturity before the security recovers to its amortized cost value, the security is written down to fair value and the entire amount of the writedown is included in net income as a realized investment loss. For all other impaired fixed maturities, when the impairment is determined to be other than temporary, the impairment loss is separated into the amount representing the credit loss and the amount representing the loss related to all other factors. The amount of the impairment loss that represents the credit loss is included in net income as a realized investment loss and the amount of the impairment loss that relates to all other factors is included in other comprehensive income. | ||
For fixed maturities, the split between the amount of other-than-temporary impairment losses that represents credit losses and the amount that relates to all other factors is principally based on assumptions regarding the amount and timing of projected cash flows. For fixed maturities other than mortgage-backed securities, cash flow estimates are based on assumptions regarding the probability of default and estimates regarding the timing and amount of recoveries associated with a default. For mortgage-backed securities, cash flow estimates are based on assumptions regarding future prepayment rates, default rates, loss severity and timing of recoveries. The Corporation has developed the estimates of projected cash flows using information based on historical market data, industry analyst reports and forecasts and other data relevant to the collectibility of a security. | ||
In determining whether equity securities are other than temporarily impaired, the Corporation considers its intent and ability to hold a security for a period of time sufficient to allow for the recovery of cost. If the decline in the fair value of an equity security is deemed to be other than temporary, the security is written down to fair value and the amount of the writedown is included in net income as a realized investment loss. | ||
Premium Revenues and Related Expenses | (c) | Premium Revenues and Related Expenses |
Insurance premiums are earned on a monthly pro rata basis over the terms of the policies and include estimates of audit premiums and premiums on retrospectively rated policies. Assumed reinsurance premiums are earned over the terms of the reinsurance contracts. Unearned premiums represent the portion of direct and assumed premiums written applicable to the unexpired terms of the insurance policies and reinsurance contracts in force. | ||
Ceded reinsurance premiums are reflected in operating results over the terms of the reinsurance contracts. Prepaid reinsurance premiums represent the portion of premiums ceded to reinsurers applicable to the unexpired terms of the reinsurance contracts in force. | ||
Reinsurance reinstatement premiums are recognized in the same period as the loss event that gave rise to the reinstatement premiums. | ||
Acquisition costs that are directly related to the successful acquisition of new or renewal insurance contracts are deferred and amortized over the period in which the related premiums are earned. Such costs include commissions, premium taxes and certain other underwriting and policy issuance costs. Commissions received related to reinsurance premiums ceded are considered in determining net acquisition costs eligible for deferral. Deferred policy acquisition costs are reviewed to determine whether they are recoverable from future income. If such costs are deemed to be unrecoverable, they are expensed. Anticipated investment income is considered in the determination of the recoverability of deferred policy acquisition costs. | ||
Unpaid Losses and Loss Expenses | (d) | Unpaid Losses and Loss Expenses |
Unpaid losses and loss expenses (also referred to as loss reserves) include the accumulation of individual case estimates for claims that have been reported and estimates of claims that have been incurred but not reported as well as estimates of the expenses associated with processing and settling all reported and unreported claims, less estimates of anticipated salvage and subrogation recoveries. Estimates are based upon past loss experience modified for current trends as well as prevailing economic, legal and social conditions. Loss reserves are not discounted to present value. | ||
Loss reserves are regularly reviewed using a variety of actuarial techniques. Reserve estimates are updated as historical loss experience develops, additional claims are reported and/or settled and new information becomes available. Any changes in estimates are reflected in operating results in the period in which the estimates are changed. | ||
Reinsurance recoverable on unpaid losses and loss expenses represents an estimate of the portion of gross loss reserves that will be recovered from reinsurers. Amounts recoverable from reinsurers are estimated using assumptions that are consistent with those used in estimating the gross losses associated with the reinsured policies. A provision for estimated uncollectible reinsurance is recorded based on periodic evaluations of balances due from reinsurers, the financial condition of the reinsurers, coverage disputes and other relevant factors. | ||
Financial Products | (e) | Financial Products |
Derivatives are carried at fair value as of the balance sheet date. Changes in fair value are recognized in net income in the period of the change and are included in other revenues. | ||
Assets and liabilities related to these derivatives are included in other assets and other liabilities. | ||
Goodwill | (f) | Goodwill |
Goodwill represents the excess of the cost of an acquired entity over the fair value of net assets acquired. Goodwill is tested for impairment at least annually. | ||
Property and Equipment | (g) | Property and Equipment |
Property and equipment used in operations, including certain costs incurred to develop or obtain computer software for internal use, are capitalized and carried at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Property and equipment are included in other assets. | ||
Real Estate | (h) | Real Estate |
Real estate properties are carried at cost less accumulated depreciation and any writedowns for impairment. Real estate properties are reviewed for impairment whenever events or circumstances indicate that the carrying value of such properties may not be recoverable. Measurement of such impairment is based on the fair value of the property. Real estate properties are included in other assets. | ||
Income Taxes | (i) | Income Taxes |
Deferred income tax assets and liabilities are recognized for the expected future tax effects attributable to temporary differences between the financial reporting and tax bases of assets and liabilities, based on enacted tax rates and other provisions of tax law. The effect on deferred tax assets and liabilities of a change in tax laws or rates is recognized in net income in the period in which such change is enacted. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that all or some portion of the deferred tax assets will not be realized. | ||
The Corporation does not consider the earnings of its foreign subsidiaries to be permanently reinvested. Accordingly, provision has been made for the expected U.S. federal income tax liabilities applicable to undistributed earnings of foreign subsidiaries. | ||
Stock-Based Employee Compensation | (j) | Stock-Based Employee Compensation |
The fair value method of accounting is used for stock-based employee compensation plans. Under the fair value method, compensation cost is measured based on the fair value of the award at the grant date and recognized over the requisite service period. | ||
Foreign Exchange | (k) | Foreign Exchange |
Assets and liabilities relating to foreign operations are translated into U.S. dollars using current exchange rates as of the balance sheet date. Revenues and expenses are translated into U.S. dollars using the average exchange rates during the year. | ||
The functional currency of foreign operations is generally the currency of the local operating environment since business is primarily transacted in such local currency. Translation gains and losses, net of applicable income tax, are excluded from net income and are credited or charged directly to other comprehensive income. | ||
Cash Flow Information | (l) | Cash Flow Information |
In the statement of cash flows, short term investments are not considered to be cash equivalents. The effect of changes in foreign exchange rates on cash balances was insignificant. | ||
In 2013, the Corporation exchanged its holdings of common stock and warrants of Alterra Capital Holdings Limited, with a cost basis of $177 million and a carrying value of $63 million, respectively, for common stock of Markel Corporation, valued at $226 million, and cash of $98 million, as a result of a business combination. The noncash portions of the transaction have been excluded from the statement of cash flows. |
Invested_Assets_and_Related_In1
Invested Assets and Related Income (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Text Block [Abstract] | |||||||||||||||||||||||||
Amortized Cost and Fair Value of Fixed Maturities and Equity Securities | (a) The amortized cost and fair value of fixed maturities and equity securities were as follows: | ||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Appreciation | Depreciation | ||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||
Tax exempt | $ | 18,614 | $ | 1,174 | $ | 16 | $ | 19,772 | |||||||||||||||||
Taxable | |||||||||||||||||||||||||
U.S. government and government agency and | 1,962 | 46 | 1 | 2,007 | |||||||||||||||||||||
authority obligations | |||||||||||||||||||||||||
Corporate bonds | 8,741 | 327 | 40 | 9,028 | |||||||||||||||||||||
Foreign government and government agency obligations | 6,380 | 295 | 3 | 6,672 | |||||||||||||||||||||
Residential mortgage-backed securities | 192 | 20 | 1 | 211 | |||||||||||||||||||||
Commercial mortgage-backed securities | 1,069 | 22 | 1 | 1,090 | |||||||||||||||||||||
18,344 | 710 | 46 | 19,008 | ||||||||||||||||||||||
Total fixed maturities | $ | 36,958 | $ | 1,884 | $ | 62 | $ | 38,780 | |||||||||||||||||
Equity securities | $ | 1,089 | $ | 894 | $ | 19 | $ | 1,964 | |||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Appreciation | Depreciation | ||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||
Tax exempt | $ | 17,808 | $ | 802 | $ | 189 | $ | 18,421 | |||||||||||||||||
Taxable | |||||||||||||||||||||||||
U.S. government and government agency and authority obligations | 784 | 27 | 9 | 802 | |||||||||||||||||||||
Corporate bonds | 9,032 | 370 | 88 | 9,314 | |||||||||||||||||||||
Foreign government and government agency obligations | 6,719 | 206 | 35 | 6,890 | |||||||||||||||||||||
Residential mortgage-backed securities | 277 | 23 | 1 | 299 | |||||||||||||||||||||
Commercial mortgage-backed securities | 1,339 | 29 | 3 | 1,365 | |||||||||||||||||||||
18,151 | 655 | 136 | 18,670 | ||||||||||||||||||||||
Total fixed maturities | $ | 35,959 | $ | 1,457 | $ | 325 | $ | 37,091 | |||||||||||||||||
Equity securities | $ | 1,057 | $ | 756 | $ | 3 | $ | 1,810 | |||||||||||||||||
Summary of Fair Value of Tax Exempt Fixed Maturities | The following table summarizes the fair value of the tax exempt fixed maturities at December 31, 2014 and 2013: | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Special revenue bonds | $ | 12,936 | $ | 11,717 | |||||||||||||||||||||
State general obligation bonds | 2,415 | 2,292 | |||||||||||||||||||||||
Municipal and political subdivision general obligation bonds | 2,378 | 2,220 | |||||||||||||||||||||||
Pre-refunded bonds | 2,043 | 2,192 | |||||||||||||||||||||||
$ | 19,772 | $ | 18,421 | ||||||||||||||||||||||
Fair Value and Amortized Cost of Tax Exempt Fixed Maturities Other Than Pre-Refunded Bonds | The following table summarizes the fair value and amortized cost of the tax exempt fixed maturities other than pre-refunded bonds held at December 31, 2014 and 2013, for the five states having the largest concentration of issuers within the tax exempt fixed maturity portfolio. The remainder of tax exempt fixed maturities were issued by a broad range of other states and municipalities and political subdivisions within those states. In the following table, “state” identifies the issuer or the location of the issuing municipality or political subdivision within a state. | ||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||
State | Special | Municipal | State | Total | Amortized | ||||||||||||||||||||
Revenue | and Political | General | Cost | ||||||||||||||||||||||
Bonds | Subdivision | Obligations | |||||||||||||||||||||||
General | |||||||||||||||||||||||||
Obligations | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
New York | $ | 2,046 | $ | 173 | $ | 43 | $ | 2,262 | $ | 2,135 | |||||||||||||||
Texas | 883 | 852 | 211 | 1,946 | 1,829 | ||||||||||||||||||||
California | 1,098 | 153 | 256 | 1,507 | 1,422 | ||||||||||||||||||||
Illinois | 608 | 381 | 97 | 1,086 | 1,022 | ||||||||||||||||||||
Florida | 850 | 63 | 167 | 1,080 | 1,017 | ||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||
State | Special | Municipal | State | Total | Amortized | ||||||||||||||||||||
Revenue | and Political | General | Cost | ||||||||||||||||||||||
Bonds | Subdivision | Obligations | |||||||||||||||||||||||
General | |||||||||||||||||||||||||
Obligations | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Texas | $ | 930 | $ | 830 | $ | 230 | $ | 1,990 | $ | 1,904 | |||||||||||||||
New York | 1,611 | 197 | 31 | 1,839 | 1,809 | ||||||||||||||||||||
California | 859 | 82 | 198 | 1,139 | 1,093 | ||||||||||||||||||||
Illinois | 577 | 483 | 56 | 1,116 | 1,094 | ||||||||||||||||||||
Florida | 757 | 38 | 108 | 903 | 877 | ||||||||||||||||||||
Fair Value and Amortized Cost of Foreign Government and Government Agency Fixed Maturities | The following table summarizes the fair value and amortized cost of the foreign government and government agency fixed maturities held at December 31, 2014 and 2013, for the five countries having the largest concentration of issuers within the foreign government and government agency fixed maturity portfolio. In the following table, “country” identifies the issuer or the location of the issuing government agency or regional government within a country. | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Country | Fair | Amortized | Fair | Amortized | |||||||||||||||||||||
Value | Cost | Value | Cost | ||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Canada | $ | 1,893 | $ | 1,823 | $ | 1,993 | $ | 1,953 | |||||||||||||||||
United Kingdom | 1,230 | 1,163 | 1,026 | 1,004 | |||||||||||||||||||||
Germany | 1,102 | 1,045 | 1,241 | 1,211 | |||||||||||||||||||||
Australia | 746 | 700 | 739 | 700 | |||||||||||||||||||||
Brazil | 232 | 231 | 270 | 270 | |||||||||||||||||||||
Fair Value and Amortized Cost of Fixed Maturities by Contractual Maturity | The fair value and amortized cost of fixed maturities at December 31, 2014 by contractual maturity were as follows: | ||||||||||||||||||||||||
Fair | Amortized | ||||||||||||||||||||||||
Value | Cost | ||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Due in one year or less | $ | 2,947 | $ | 2,922 | |||||||||||||||||||||
Due after one year through five years | 12,906 | 12,406 | |||||||||||||||||||||||
Due after five years through ten years | 12,814 | 12,041 | |||||||||||||||||||||||
Due after ten years | 8,812 | 8,328 | |||||||||||||||||||||||
37,479 | 35,697 | ||||||||||||||||||||||||
Residential mortgage-backed securities | 211 | 192 | |||||||||||||||||||||||
Commercial mortgage-backed securities | 1,090 | 1,069 | |||||||||||||||||||||||
$ | 38,780 | $ | 36,958 | ||||||||||||||||||||||
Components of Unrealized Appreciation or Depreciation of Investments | (b) The components of unrealized appreciation or depreciation, including unrealized other-than-temporary impairment losses, of investments carried at fair value were as follows: | ||||||||||||||||||||||||
December 31 | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||
Gross unrealized appreciation | $ | 1,884 | $ | 1,457 | |||||||||||||||||||||
Gross unrealized depreciation | 62 | 325 | |||||||||||||||||||||||
1,822 | 1,132 | ||||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||
Gross unrealized appreciation | 894 | 756 | |||||||||||||||||||||||
Gross unrealized depreciation | 19 | 3 | |||||||||||||||||||||||
875 | 753 | ||||||||||||||||||||||||
2,697 | 1,885 | ||||||||||||||||||||||||
Deferred income tax liability | 944 | 660 | |||||||||||||||||||||||
$ | 1,753 | $ | 1,225 | ||||||||||||||||||||||
Fair Value and Gross Unrealized Depreciation of Investments in Unrealized Loss Position | The following table summarizes, for all investment securities in an unrealized loss position at December 31, 2014, the aggregate fair value and gross unrealized depreciation, including unrealized other-than-temporary impairment losses, by investment category and length of time that individual securities have continuously been in an unrealized loss position. | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||
Fair | Gross | Fair | Gross | Fair | Gross | ||||||||||||||||||||
Value | Unrealized | Value | Unrealized | Value | Unrealized | ||||||||||||||||||||
Depreciation | Depreciation | Depreciation | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||
Tax exempt | $ | 422 | $ | 3 | $ | 305 | $ | 13 | $ | 727 | $ | 16 | |||||||||||||
Taxable | |||||||||||||||||||||||||
U.S. government and government agency | 936 | 1 | 36 | — | 972 | 1 | |||||||||||||||||||
and authority obligations | |||||||||||||||||||||||||
Corporate bonds | 1,327 | 23 | 888 | 17 | 2,215 | 40 | |||||||||||||||||||
Foreign government and government | 318 | 1 | 207 | 2 | 525 | 3 | |||||||||||||||||||
agency obligations | |||||||||||||||||||||||||
Residential mortgage-backed securities | — | — | 7 | 1 | 7 | 1 | |||||||||||||||||||
Commercial mortgage-backed securities | 106 | — | 67 | 1 | 173 | 1 | |||||||||||||||||||
2,687 | 25 | 1,205 | 21 | 3,892 | 46 | ||||||||||||||||||||
Total fixed maturities | 3,109 | 28 | 1,510 | 34 | 4,619 | 62 | |||||||||||||||||||
Equity securities | 67 | 11 | 11 | 8 | 78 | 19 | |||||||||||||||||||
$ | 3,176 | $ | 39 | $ | 1,521 | $ | 42 | $ | 4,697 | $ | 81 | ||||||||||||||
At December 31, 2014, approximately 735 individual fixed maturities and 15 individual equity securities were in an unrealized loss position. The Corporation does not have the intent to sell and it is not more likely than not that the Corporation will be required to sell these fixed maturities before the securities recover to their amortized cost value. In addition, the Corporation believes that none of the declines in the fair values of these fixed maturities relate to credit losses. The Corporation has the intent and ability to hold the equity securities in an unrealized loss position for a period of time sufficient to allow for the recovery of cost. The Corporation believes that none of the declines in the fair value of these fixed maturities and equity securities were other than temporary at December 31, 2014. | |||||||||||||||||||||||||
The following table summarizes, for all investment securities in an unrealized loss position at December 31, 2013, the aggregate fair value and gross unrealized depreciation, including unrealized other-than-temporary impairment losses, by investment category and length of time that individual securities have continuously been in an unrealized loss position. | |||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||
Fair | Gross | Fair | Gross | Fair | Gross | ||||||||||||||||||||
Value | Unrealized | Value | Unrealized | Value | Unrealized | ||||||||||||||||||||
Depreciation | Depreciation | Depreciation | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||
Tax exempt | $ | 3,417 | $ | 144 | $ | 307 | $ | 45 | $ | 3,724 | $ | 189 | |||||||||||||
Taxable | |||||||||||||||||||||||||
U.S. government and government agency and authority obligations | 213 | 6 | 35 | 3 | 248 | 9 | |||||||||||||||||||
Corporate bonds | 2,526 | 76 | 222 | 12 | 2,748 | 88 | |||||||||||||||||||
Foreign government and government agency obligations | 1,735 | 32 | 75 | 3 | 1,810 | 35 | |||||||||||||||||||
Residential mortgage-backed securities | 4 | — | 14 | 1 | 18 | 1 | |||||||||||||||||||
Commercial mortgage-backed securities | 153 | 1 | 39 | 2 | 192 | 3 | |||||||||||||||||||
4,631 | 115 | 385 | 21 | 5,016 | 136 | ||||||||||||||||||||
Total fixed maturities | 8,048 | 259 | 692 | 66 | 8,740 | 325 | |||||||||||||||||||
Equity securities | 41 | 3 | — | — | 41 | 3 | |||||||||||||||||||
$ | 8,089 | $ | 262 | $ | 692 | $ | 66 | $ | 8,781 | $ | 328 | ||||||||||||||
Change in Unrealized Appreciation or Depreciation of Investments Carried at Fair Value | The change in unrealized appreciation or depreciation of investments carried at fair value, including the change in unrealized other-than-temporary impairment losses, was as follows: | ||||||||||||||||||||||||
Years Ended December 31 | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Change in unrealized appreciation of fixed maturities | $ | 690 | $ | (1,546 | ) | $ | 256 | ||||||||||||||||||
Change in unrealized appreciation of equity securities | 122 | 334 | 171 | ||||||||||||||||||||||
812 | (1,212 | ) | 427 | ||||||||||||||||||||||
Deferred income tax (credit) | 284 | (424 | ) | 150 | |||||||||||||||||||||
$ | 528 | $ | (788 | ) | $ | 277 | |||||||||||||||||||
Sources of Net Investment Income | (c) The sources of net investment income were as follows: | ||||||||||||||||||||||||
Years Ended December 31 | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Fixed maturities | $ | 1,314 | $ | 1,380 | $ | 1,465 | |||||||||||||||||||
Equity securities | 41 | 38 | 40 | ||||||||||||||||||||||
Short term investments | 18 | 16 | 18 | ||||||||||||||||||||||
Other | 21 | 31 | 33 | ||||||||||||||||||||||
Gross investment income | 1,394 | 1,465 | 1,556 | ||||||||||||||||||||||
Investment expenses | 42 | 49 | 38 | ||||||||||||||||||||||
$ | 1,352 | $ | 1,416 | $ | 1,518 | ||||||||||||||||||||
Realized Investment Gains and Losses | (d) Realized investment gains and losses were as follows: | ||||||||||||||||||||||||
Years Ended | |||||||||||||||||||||||||
December 31 | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||
Gross realized gains | $ | 126 | $ | 62 | $ | 124 | |||||||||||||||||||
Gross realized losses | (36 | ) | (42 | ) | (20 | ) | |||||||||||||||||||
Other-than-temporary impairment losses | (5 | ) | (2 | ) | (5 | ) | |||||||||||||||||||
85 | 18 | 99 | |||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||
Gross realized gains | 137 | 204 | 68 | ||||||||||||||||||||||
Gross realized losses | — | (1 | ) | — | |||||||||||||||||||||
Other-than-temporary impairment losses | (2 | ) | (9 | ) | (40 | ) | |||||||||||||||||||
135 | 194 | 28 | |||||||||||||||||||||||
Other invested assets | 149 | 190 | 66 | ||||||||||||||||||||||
$ | 369 | $ | 402 | $ | 193 | ||||||||||||||||||||
Deferred_Policy_Acquisition_Co1
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Text Block [Abstract] | |||||||||||||
Policy Acquisition Costs Deferred and Related Amortization Reflected in Operating Results | Policy acquisition costs deferred and the related amortization reflected in operating results were as follows: | ||||||||||||
Years Ended December 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in millions) | |||||||||||||
Balance, beginning of year | $ | 1,255 | $ | 1,206 | $ | 1,210 | |||||||
Costs deferred during year | |||||||||||||
Commissions and brokerage | 2,073 | 1,979 | 1,919 | ||||||||||
Premium taxes and assessments | 258 | 263 | 247 | ||||||||||
Underwriting and policy issuance costs | 262 | 271 | 248 | ||||||||||
2,593 | 2,513 | 2,414 | |||||||||||
Foreign currency translation effect | (16 | ) | (10 | ) | (7 | ) | |||||||
Amortization during year | (2,548 | ) | (2,454 | ) | (2,411 | ) | |||||||
Balance, end of year | $ | 1,284 | $ | 1,255 | $ | 1,206 | |||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Schedule of Property and Equipment | Property and equipment included in other assets were as follows: | ||||||||
December 31 | |||||||||
2014 | 2013 | ||||||||
(in millions) | |||||||||
Cost | $ | 488 | $ | 501 | |||||
Accumulated depreciation | 239 | 243 | |||||||
$ | 249 | $ | 258 | ||||||
Unpaid_Losses_and_Loss_Expense1
Unpaid Losses and Loss Expenses (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Insurance [Abstract] | |||||||||||||
Reconciliation of Beginning and Ending Liability for Unpaid Losses and Loss Expenses | A reconciliation of the beginning and ending liability for unpaid losses and loss expenses, net of reinsurance recoverable, and a reconciliation of the net liability to the corresponding liability on a gross basis is as follows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in millions) | |||||||||||||
Gross liability, beginning of year | $ | 23,146 | $ | 23,963 | $ | 23,068 | |||||||
Reinsurance recoverable, beginning of year | 1,802 | 1,941 | 1,739 | ||||||||||
Net liability, beginning of year | 21,344 | 22,022 | 21,329 | ||||||||||
Net incurred losses and loss expenses related to | |||||||||||||
Current year | 7,621 | 7,232 | 8,121 | ||||||||||
Prior years | (636 | ) | (712 | ) | (614 | ) | |||||||
6,985 | 6,520 | 7,507 | |||||||||||
Net payments for losses and loss expenses related to | |||||||||||||
Current year | 2,496 | 2,150 | 2,323 | ||||||||||
Prior years | 4,534 | 4,952 | 4,493 | ||||||||||
7,030 | 7,102 | 6,816 | |||||||||||
Foreign currency translation effect | (260 | ) | (96 | ) | 2 | ||||||||
Net liability, end of year | 21,039 | 21,344 | 22,022 | ||||||||||
Reinsurance recoverable, end of year | 1,639 | 1,802 | 1,941 | ||||||||||
Gross liability, end of year | $ | 22,678 | $ | 23,146 | $ | 23,963 | |||||||
Debt_and_Credit_Arrangements_T
Debt and Credit Arrangements (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Long Term Debt | (a) Long term debt consisted of the following: | ||||||||
December 31 | |||||||||
2014 | 2013 | ||||||||
(in millions) | |||||||||
5.75% notes due May 15, 2018 | $ | 600 | $ | 600 | |||||
6.6% debentures due August 15, 2018 | 100 | 100 | |||||||
6.8% debentures due November 15, 2031 | 200 | 200 | |||||||
6% notes due May 11, 2037 | 800 | 800 | |||||||
6.5% notes due May 15, 2038 | 600 | 600 | |||||||
6.375% capital securities due March 29, 2067 | 1,000 | 1,000 | |||||||
$ | 3,300 | $ | 3,300 | ||||||
Amounts of Long Term Debt due Annually | The amounts of long term debt due annually during the five years subsequent to December 31, 2014 are as follows: | ||||||||
Years Ending December 31 | (in millions) | ||||||||
2015 | $ | — | |||||||
2016 | — | ||||||||
2017 | — | ||||||||
2018 | 700 | ||||||||
2019 | — |
Federal_and_Foreign_Income_Tax1
Federal and Foreign Income Tax (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||
Income Tax Expense and Taxes Paid | Income tax expense and taxes paid consisted of the following components: | ||||||||||||||||||||||||
Years Ended December 31 | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||||
Current tax | |||||||||||||||||||||||||
United States | $ | 617 | $ | 791 | $ | 276 | |||||||||||||||||||
Foreign | 124 | 91 | 143 | ||||||||||||||||||||||
Deferred tax, principally United States | 20 | 10 | 32 | ||||||||||||||||||||||
$ | 761 | $ | 892 | $ | 451 | ||||||||||||||||||||
Federal and foreign income taxes paid | $ | 571 | $ | 789 | $ | 472 | |||||||||||||||||||
Reconciliation of Effective Income Tax Rate and Statutory Federal Corporate Tax Rate | The effective income tax rate is different than the statutory federal corporate tax rate. The reasons for the different effective tax rate were as follows: | ||||||||||||||||||||||||
Years Ended December 31 | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Amount | % of | Amount | % of | Amount | % of | ||||||||||||||||||||
Pre-Tax | Pre-Tax | Pre-Tax | |||||||||||||||||||||||
Income | Income | Income | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Income before federal and foreign income tax | $ | 2,861 | $ | 3,237 | $ | 1,996 | |||||||||||||||||||
Tax at statutory federal income tax rate | $ | 1,001 | 35 | % | $ | 1,133 | 35 | % | $ | 699 | 35 | % | |||||||||||||
Tax exempt interest income | (212 | ) | (7.4 | ) | (222 | ) | (6.8 | ) | (233 | ) | (11.7 | ) | |||||||||||||
Other, net | (28 | ) | (1.0 | ) | (19 | ) | (.6 | ) | (15 | ) | (.7 | ) | |||||||||||||
Federal and foreign income tax | $ | 761 | 26.6 | % | $ | 892 | 27.6 | % | $ | 451 | 22.6 | % | |||||||||||||
Tax Effects of Temporary Differences that Gave Rise to Deferred Income Tax Assets and Liabilities | The tax effects of temporary differences that gave rise to deferred income tax assets and liabilities were as follows: | ||||||||||||||||||||||||
December 31 | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Deferred income tax assets | |||||||||||||||||||||||||
Unpaid losses and loss expenses | $ | 509 | $ | 524 | |||||||||||||||||||||
Unearned premiums | 364 | 350 | |||||||||||||||||||||||
Foreign tax credits | 963 | 867 | |||||||||||||||||||||||
Employee compensation | 144 | 142 | |||||||||||||||||||||||
Postretirement benefits | 272 | 95 | |||||||||||||||||||||||
Other-than-temporary impairment losses | 298 | 291 | |||||||||||||||||||||||
Other, net | 29 | — | |||||||||||||||||||||||
Total | 2,579 | 2,269 | |||||||||||||||||||||||
Deferred income tax liabilities | |||||||||||||||||||||||||
Deferred policy acquisition costs | 367 | 356 | |||||||||||||||||||||||
Unremitted earnings of foreign subsidiaries | 1,075 | 970 | |||||||||||||||||||||||
Unrealized appreciation of investments | 944 | 660 | |||||||||||||||||||||||
Other invested assets | 208 | 184 | |||||||||||||||||||||||
Other, net | — | 52 | |||||||||||||||||||||||
Total | 2,594 | 2,222 | |||||||||||||||||||||||
Net deferred income tax asset (liability) | $ | (15 | ) | $ | 47 | ||||||||||||||||||||
Reinsurance_Tables
Reinsurance (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Insurance [Abstract] | |||||||||||||
Effect of Reinsurance on Premiums Written and Earned | The effect of reinsurance on the premiums written and earned of the P&C Group was as follows: | ||||||||||||
Years Ended December 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in millions) | |||||||||||||
Direct premiums written | $ | 12,976 | $ | 12,804 | $ | 12,647 | |||||||
Assumed reinsurance | 596 | 503 | 423 | ||||||||||
Ceded reinsurance | (980 | ) | (1,083 | ) | (1,200 | ) | |||||||
Net premiums written | $ | 12,592 | $ | 12,224 | $ | 11,870 | |||||||
Direct premiums earned | $ | 12,776 | $ | 12,717 | $ | 12,596 | |||||||
Assumed reinsurance | 562 | 476 | 422 | ||||||||||
Ceded reinsurance | (1,010 | ) | (1,127 | ) | (1,180 | ) | |||||||
Net premiums earned | $ | 12,328 | $ | 12,066 | $ | 11,838 | |||||||
StockBased_Employee_Compensati1
Stock-Based Employee Compensation Plans (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Additional Information With Respect to Restricted Stock Units and Performance Units | Additional information with respect to restricted stock units and performance units is as follows: | ||||||||||||||||
Restricted Stock Units | Performance Units* | ||||||||||||||||
Number | Weighted Average | Number | Weighted Average | ||||||||||||||
of Shares | Grant Date | of Shares | Grant Date | ||||||||||||||
Fair Value | Fair Value | ||||||||||||||||
Nonvested, January 1, 2014 | 2,127,647 | $ | 70.23 | 861,141 | $ | 79.87 | |||||||||||
Granted | 625,197 | 86.67 | 421,271 | 76.32 | |||||||||||||
Vested** | (762,349 | ) | 60.53 | (456,176 | ) | 63.38 | |||||||||||
Forfeited | (82,551 | ) | 81.16 | (4,041 | ) | 77.87 | |||||||||||
Nonvested, December 31, 2014 | 1,907,944 | 79.02 | 822,195 | 87.21 | |||||||||||||
* | The number of shares earned may range from 0% to 200% of the performance units shown in the table above. | ||||||||||||||||
** | The performance units earned in 2014 were 35.2% of the vested shares shown in the table, or 160,574 shares. | ||||||||||||||||
Additional Information with Respect to Stock Options | Additional information with respect to stock options is as follows: | ||||||||||||||||
Number | Weighted | Weighted Average | Aggregate | ||||||||||||||
of Shares | Average | Remaining | Intrinsic Value | ||||||||||||||
Exercise Price | Contractual Term | ||||||||||||||||
(in years) | (in millions) | ||||||||||||||||
Outstanding, January 1, 2014 | 251,687 | $ | 62.52 | ||||||||||||||
Granted | 65,605 | 86.59 | |||||||||||||||
Exercised | (54,932 | ) | 59.08 | ||||||||||||||
Forfeited | (6,949 | ) | 82.83 | ||||||||||||||
Outstanding, December 31, 2014 | 255,411 | 68.89 | 6.6 | $ | 9 | ||||||||||||
Exercisable, December 31, 2014 | 128,880 | 55.24 | 4.8 | 6 |
Employee_Benefits_Tables
Employee Benefits (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||
Funded Status of Pension and Other Postretirement Benefit Plans | The funded status of the pension and other postretirement benefit plans at December 31, 2014 and 2013 was as follows: | ||||||||||||||||||||||||
Pension | Other | ||||||||||||||||||||||||
Benefits | Postretirement | ||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Benefit obligation, beginning of year | $ | 2,777 | $ | 2,894 | $ | 394 | $ | 470 | |||||||||||||||||
Service cost | 86 | 95 | 10 | 13 | |||||||||||||||||||||
Interest cost | 140 | 125 | 19 | 19 | |||||||||||||||||||||
Actuarial loss (gain) | 536 | (261 | ) | 74 | (97 | ) | |||||||||||||||||||
Benefits paid | (85 | ) | (75 | ) | (10 | ) | (11 | ) | |||||||||||||||||
Foreign currency translation effect | (19 | ) | (1 | ) | (2 | ) | — | ||||||||||||||||||
Benefit obligation, end of year | 3,435 | 2,777 | 485 | 394 | |||||||||||||||||||||
Plan assets at fair value, beginning of year | 2,717 | 2,305 | 130 | 96 | |||||||||||||||||||||
Actual return on plan assets | 240 | 409 | 12 | 27 | |||||||||||||||||||||
Employer contributions | 92 | 82 | 11 | 18 | |||||||||||||||||||||
Benefits paid | (85 | ) | (75 | ) | (10 | ) | (11 | ) | |||||||||||||||||
Foreign currency translation effect | (18 | ) | (4 | ) | — | — | |||||||||||||||||||
Plan assets at fair value, end of year | 2,946 | 2,717 | 143 | 130 | |||||||||||||||||||||
Funded status at end of year, included in other liabilities | $ | 489 | $ | 60 | $ | 342 | $ | 264 | |||||||||||||||||
Net Actuarial Loss (Gain) and Prior Service Cost Included in Accumulated Other Comprehensive Income | Net actuarial loss (gain) and prior service cost included in accumulated other comprehensive income that were not yet recognized as components of net benefit costs at December 31, 2014 and 2013 were as follows: | ||||||||||||||||||||||||
Pension | Other | ||||||||||||||||||||||||
Benefits | Postretirement | ||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Net actuarial loss (gain) | $ | 842 | $ | 396 | $ | 58 | $ | (13 | ) | ||||||||||||||||
Prior service cost | 14 | 16 | 1 | 1 | |||||||||||||||||||||
$ | 856 | $ | 412 | $ | 59 | $ | (12 | ) | |||||||||||||||||
Weighted Average Assumptions Used to Determine Benefit Obligations | The weighted average assumptions used to determine the benefit obligations were as follows: | ||||||||||||||||||||||||
Pension Benefits | Other | ||||||||||||||||||||||||
Postretirement | |||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
Discount rate | 4.3 | % | 5.2 | % | 4.3 | % | 5.2 | % | |||||||||||||||||
Rate of compensation increase | 4.5 | 4.5 | — | — | |||||||||||||||||||||
Components of Net Pension and Other Postretirement Benefit Costs Reflected in Net Income | The components of net pension and other postretirement benefit costs reflected in net income and other changes in plan assets and benefit obligations recognized in other comprehensive income for the years ended December 31, 2014, 2013 and 2012 were as follows: | ||||||||||||||||||||||||
Pension Benefits | Other | ||||||||||||||||||||||||
Postretirement Benefits | |||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Costs reflected in net income | |||||||||||||||||||||||||
Service cost | $ | 86 | $ | 95 | $ | 88 | $ | 10 | $ | 13 | $ | 12 | |||||||||||||
Interest cost | 140 | 125 | 124 | 19 | 19 | 20 | |||||||||||||||||||
Expected return on plan assets | (186 | ) | (165 | ) | (155 | ) | (9 | ) | (7 | ) | (6 | ) | |||||||||||||
Amortization of net actuarial loss and prior service cost and other | 35 | 90 | 80 | — | 3 | 3 | |||||||||||||||||||
$ | 75 | $ | 145 | $ | 137 | $ | 20 | $ | 28 | $ | 29 | ||||||||||||||
Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | The components of net pension and other postretirement benefit costs reflected in net income and other changes in plan assets and benefit obligations recognized in other comprehensive income for the years ended December 31, 2014, 2013 and 2012 were as follows: | ||||||||||||||||||||||||
Pension Benefits | Other | ||||||||||||||||||||||||
Postretirement Benefits | |||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Costs reflected in net income | |||||||||||||||||||||||||
Service cost | $ | 86 | $ | 95 | $ | 88 | $ | 10 | $ | 13 | $ | 12 | |||||||||||||
Interest cost | 140 | 125 | 124 | 19 | 19 | 20 | |||||||||||||||||||
Expected return on plan assets | (186 | ) | (165 | ) | (155 | ) | (9 | ) | (7 | ) | (6 | ) | |||||||||||||
Amortization of net actuarial loss and prior service cost and other | 35 | 90 | 80 | — | 3 | 3 | |||||||||||||||||||
$ | 75 | $ | 145 | $ | 137 | $ | 20 | $ | 28 | $ | 29 | ||||||||||||||
Changes in plan assets and benefit obligations recognized in other comprehensive income | |||||||||||||||||||||||||
Net actuarial loss (gain) | $ | 479 | $ | (505 | ) | $ | 139 | $ | 71 | $ | (117 | ) | $ | (11 | ) | ||||||||||
Amortization of net actuarial loss and prior service cost and other | (35 | ) | (90 | ) | (80 | ) | — | (3 | ) | (3 | ) | ||||||||||||||
$ | 444 | $ | (595 | ) | $ | 59 | $ | 71 | $ | (120 | ) | $ | (14 | ) | |||||||||||
Weighted Average Assumptions Used to Determine Net Pension and Other Postretirement Benefit Costs | The weighted average assumptions used to determine net pension and other postretirement benefit costs were as follows: | ||||||||||||||||||||||||
Pension Benefits | Other | ||||||||||||||||||||||||
Postretirement Benefits | |||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Discount rate | 5.20% | 4.40% | 5.00% | 5.20% | 4.40% | 5.00% | |||||||||||||||||||
Rate of compensation increase | 4.5 | 4.5 | 4.5 | — | — | — | |||||||||||||||||||
Expected long term rate of return on plan assets | 7.5 | 7.5 | 7.75 | 7.5 | 7.5 | 7.75 | |||||||||||||||||||
Weighted Average Health Care Cost Trend Rate Assumptions | The weighted average health care cost trend rate assumptions used to measure the expected cost of medical benefits were as follows: | ||||||||||||||||||||||||
December 31 | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Health care cost trend rate for next year | 7.3 | % | 7.6 | % | |||||||||||||||||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4.5 | 4.5 | |||||||||||||||||||||||
Year that the rate reaches the ultimate trend rate | 2028 | 2028 | |||||||||||||||||||||||
Fair Values of Pension Plan Assets | The fair values of the pension plan assets were as follows: | ||||||||||||||||||||||||
December 31 | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Short term investments | $ | 48 | $ | 37 | |||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||
U.S. government and government agency and authority obligations | 209 | 224 | |||||||||||||||||||||||
Corporate bonds | 419 | 371 | |||||||||||||||||||||||
Foreign government and government agency obligations | 137 | 104 | |||||||||||||||||||||||
Mortgage-backed securities | 228 | 217 | |||||||||||||||||||||||
Total fixed maturities | 993 | 916 | |||||||||||||||||||||||
Equity securities | 1,850 | 1,718 | |||||||||||||||||||||||
Other assets | 55 | 46 | |||||||||||||||||||||||
$ | 2,946 | $ | 2,717 | ||||||||||||||||||||||
Estimated Benefits Expected to be Paid | The estimated benefits expected to be paid in each of the next five years and in the aggregate for the following five years are as follows: | ||||||||||||||||||||||||
Years Ending December 31 | Pension | Other | |||||||||||||||||||||||
Benefits | Postretirement | ||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
2015 | $ | 105 | $ | 12 | |||||||||||||||||||||
2016 | 115 | 14 | |||||||||||||||||||||||
2017 | 151 | 15 | |||||||||||||||||||||||
2018 | 132 | 17 | |||||||||||||||||||||||
2019 | 143 | 18 | |||||||||||||||||||||||
2020-2024 | 868 | 117 |
Comprehensive_Income_Tables
Comprehensive Income (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||
Components of Other Comprehensive Income or Loss | The components of other comprehensive income or loss were as follows: | ||||||||||||||||||||||||||||||||||||
Years Ended December 31 | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
Before | Income | Net of | Before | Income | Net of | Before | Income | Net of | |||||||||||||||||||||||||||||
Tax | Tax | Tax | Tax | Tax | Tax | Tax | Tax | Tax | |||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||
Net unrealized holding gains (losses) arising | $ | 1,032 | $ | 361 | $ | 671 | $ | (1,000 | ) | $ | (350 | ) | $ | (650 | ) | $ | 556 | $ | 195 | $ | 361 | ||||||||||||||||
during the year | |||||||||||||||||||||||||||||||||||||
Unrealized other-than-temporary | — | — | — | — | — | — | (2 | ) | (1 | ) | (1 | ) | |||||||||||||||||||||||||
impairment losses arising during the year | |||||||||||||||||||||||||||||||||||||
Reclassification adjustment for net realized | 220 | 77 | 143 | 212 | 74 | 138 | 127 | 44 | 83 | ||||||||||||||||||||||||||||
gains included in net income | |||||||||||||||||||||||||||||||||||||
Net unrealized gains (losses) recognized in other comprehensive income or loss | 812 | 284 | 528 | (1,212 | ) | (424 | ) | (788 | ) | 427 | 150 | 277 | |||||||||||||||||||||||||
Postretirement benefit gain (loss) not yet | (550 | ) | (192 | ) | (358 | ) | 622 | 218 | 404 | (128 | ) | (45 | ) | (83 | ) | ||||||||||||||||||||||
recognized in net income arising during the year | |||||||||||||||||||||||||||||||||||||
Reclassification adjustment for the | (35 | ) | (13 | ) | (22 | ) | (93 | ) | (33 | ) | (60 | ) | (83 | ) | (30 | ) | (53 | ) | |||||||||||||||||||
amortization of net actuarial loss and prior service cost included in net income (a) | |||||||||||||||||||||||||||||||||||||
Net change in postretirement benefit | (515 | ) | (179 | ) | (336 | ) | 715 | 251 | 464 | (45 | ) | (15 | ) | (30 | ) | ||||||||||||||||||||||
costs not yet recognized in net income | |||||||||||||||||||||||||||||||||||||
Foreign currency translation losses | (180 | ) | (63 | ) | (117 | ) | (111 | ) | (39 | ) | (72 | ) | (16 | ) | (5 | ) | (11 | ) | |||||||||||||||||||
Total other comprehensive income (loss) | $ | 117 | $ | 42 | $ | 75 | $ | (608 | ) | $ | (212 | ) | $ | (396 | ) | $ | 366 | $ | 130 | $ | 236 | ||||||||||||||||
(a) | Postretirement benefit costs recognized in net income during the period are included among several of the loss and expense components presented in the consolidated statements of income. |
Commitments_and_Contingent_Lia1
Commitments and Contingent Liabilities (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||
Rent Expense | Rent expense was as follows: | ||||||||||||
Years Ended | |||||||||||||
December 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in millions) | |||||||||||||
Office facilities | $ | 67 | $ | 71 | $ | 71 | |||||||
Equipment | 13 | 13 | 11 | ||||||||||
$ | 80 | $ | 84 | $ | 82 | ||||||||
Future Minimum Rental Payments Required Under Non-Cancellable Operating Leases | At December 31, 2014, future minimum rental payments required under non-cancellable operating leases were as follows: | ||||||||||||
Years Ending December 31 | (in millions) | ||||||||||||
2015 | $ | 63 | |||||||||||
2016 | 52 | ||||||||||||
2017 | 47 | ||||||||||||
2018 | 40 | ||||||||||||
2019 | 30 | ||||||||||||
After 2019 | 81 | ||||||||||||
$ | 313 | ||||||||||||
Segments_Information_Tables
Segments Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Revenues, Income Before Income Tax and Assets of Each Operating Segment | Revenues, income before income tax and assets of each operating segment were as follows: | ||||||||||||
Years Ended December 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in millions) | |||||||||||||
Revenues | |||||||||||||
Property and casualty insurance | |||||||||||||
Premiums earned | |||||||||||||
Personal insurance | $ | 4,418 | $ | 4,214 | $ | 4,024 | |||||||
Commercial insurance | 5,281 | 5,237 | 5,144 | ||||||||||
Specialty insurance | 2,628 | 2,618 | 2,666 | ||||||||||
Total insurance | 12,327 | 12,069 | 11,834 | ||||||||||
Reinsurance assumed | 1 | (3 | ) | 4 | |||||||||
12,328 | 12,066 | 11,838 | |||||||||||
Investment income | 1,368 | 1,436 | 1,518 | ||||||||||
Total property and casualty insurance | 13,696 | 13,502 | 13,356 | ||||||||||
Corporate and other | 33 | 43 | 46 | ||||||||||
Realized investment gains, net | 369 | 402 | 193 | ||||||||||
Total revenues | $ | 14,098 | $ | 13,947 | $ | 13,595 | |||||||
Income (loss) before income tax | |||||||||||||
Property and casualty insurance | |||||||||||||
Underwriting | |||||||||||||
Personal insurance | $ | 370 | $ | 509 | $ | 192 | |||||||
Commercial insurance | 492 | 692 | 44 | ||||||||||
Specialty insurance | 495 | 406 | 262 | ||||||||||
Total insurance | 1,357 | 1,607 | 498 | ||||||||||
Reinsurance assumed | — | 9 | 47 | ||||||||||
1,357 | 1,616 | 545 | |||||||||||
Increase in deferred policy acquisition costs | 45 | 59 | 3 | ||||||||||
Underwriting income | 1,402 | 1,675 | 548 | ||||||||||
Investment income | 1,329 | 1,391 | 1,482 | ||||||||||
Other income (charges) | (4 | ) | 6 | 10 | |||||||||
Total property and casualty insurance | 2,727 | 3,072 | 2,040 | ||||||||||
Corporate and other | (235 | ) | (237 | ) | (237 | ) | |||||||
Realized investment gains, net | 369 | 402 | 193 | ||||||||||
Total income before income tax | $ | 2,861 | $ | 3,237 | $ | 1,996 | |||||||
December 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in millions) | |||||||||||||
Assets | |||||||||||||
Property and casualty insurance | $ | 49,297 | $ | 48,278 | $ | 49,441 | |||||||
Corporate and other | 2,078 | 2,248 | 2,830 | ||||||||||
Adjustments and eliminations | (89 | ) | (93 | ) | (87 | ) | |||||||
Total assets | $ | 51,286 | $ | 50,433 | $ | 52,184 | |||||||
Revenues of Property and Casualty Group by Geographic Area | Revenues of the P&C Group by geographic area were as follows: | ||||||||||||
Years Ended December 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in millions) | |||||||||||||
Revenues | |||||||||||||
United States | $ | 10,448 | $ | 10,205 | $ | 9,996 | |||||||
International | 3,248 | ||||||||||||
3,297 | |||||||||||||
3,360 | |||||||||||||
Total | $ | 13,696 | $ | 13,502 | $ | 13,356 | |||||||
Fair_Values_of_Financial_Instr1
Fair Values of Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Carrying Values and Fair Values of Financial Instruments | The carrying values and fair values of financial instruments were as follows: | ||||||||||||||||
December 31 | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||
Value | Value | Value | Value | ||||||||||||||
(in millions) | |||||||||||||||||
Assets | |||||||||||||||||
Invested assets | |||||||||||||||||
Short term investments | $ | 1,318 | $ | 1,318 | $ | 2,114 | $ | 2,114 | |||||||||
Fixed maturities (Note 2) | 38,780 | 38,780 | 37,091 | 37,091 | |||||||||||||
Equity securities | 1,964 | 1,964 | 1,810 | 1,810 | |||||||||||||
Liabilities | |||||||||||||||||
Long term debt (Note 6) | 3,300 | 4,013 | 3,300 | 3,806 | |||||||||||||
Fair Value of Financial Instruments Categorized Based Upon Lowest Level of Input | |||||||||||||||||
The fair value of financial instruments categorized based upon the lowest level of input that was significant to the fair value measurement was as follows: | |||||||||||||||||
December 31, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(in millions) | |||||||||||||||||
Assets | |||||||||||||||||
Short term investments | $ | 206 | $ | 1,112 | $ | — | $ | 1,318 | |||||||||
Fixed maturities | |||||||||||||||||
Tax exempt | — | 19,769 | 3 | 19,772 | |||||||||||||
Taxable | |||||||||||||||||
U.S. government and government agency and authority obligations | — | 2,007 | — | 2,007 | |||||||||||||
Corporate bonds | — | 8,912 | 116 | 9,028 | |||||||||||||
Foreign government and government agency obligations | — | 6,663 | 9 | 6,672 | |||||||||||||
Residential mortgage-backed securities | — | 210 | 1 | 211 | |||||||||||||
Commercial mortgage-backed securities | — | 1,090 | — | 1,090 | |||||||||||||
— | 18,882 | 126 | 19,008 | ||||||||||||||
Total fixed maturities | — | 38,651 | 129 | 38,780 | |||||||||||||
Equity securities | 1,958 | — | 6 | 1,964 | |||||||||||||
$ | 2,164 | $ | 39,763 | $ | 135 | $ | 42,062 | ||||||||||
Liabilities | |||||||||||||||||
Long term debt | $ | — | $ | 4,013 | $ | — | $ | 4,013 | |||||||||
December 31, 2013 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(in millions) | |||||||||||||||||
Assets | |||||||||||||||||
Short term investments | $ | 399 | $ | 1,715 | $ | — | $ | 2,114 | |||||||||
Fixed maturities | |||||||||||||||||
Tax exempt | — | 18,416 | 5 | 18,421 | |||||||||||||
Taxable | |||||||||||||||||
U.S. government and government agency and authority obligations | — | 802 | — | 802 | |||||||||||||
Corporate bonds | — | 9,179 | 135 | 9,314 | |||||||||||||
Foreign government and government agency obligations | — | 6,881 | 9 | 6,890 | |||||||||||||
Residential mortgage-backed securities | — | 293 | 6 | 299 | |||||||||||||
Commercial mortgage-backed securities | — | 1,345 | 20 | 1,365 | |||||||||||||
— | 18,500 | 170 | 18,670 | ||||||||||||||
Total fixed maturities | — | 36,916 | 175 | 37,091 | |||||||||||||
Equity securities | 1,803 | — | 7 | 1,810 | |||||||||||||
$2,202 | $38,631 | $182 | $41,015 | ||||||||||||||
Liabilities | |||||||||||||||||
Long term debt | |||||||||||||||||
$ | — | $ | 3,806 | $ | — | $ | 3,806 | ||||||||||
Fair Values of Pension Plan Assets Categorized Based Upon Lowest Level of Input | Based on the fair value hierarchy, the fair value of the Corporation’s pension plan assets categorized based upon the lowest level of input that was significant to the fair value measurement was as follows: | ||||||||||||||||
December 31, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(in millions) | |||||||||||||||||
Short term investments | $ | — | $ | 48 | $ | — | $ | 48 | |||||||||
Fixed maturities | |||||||||||||||||
U.S. government and government agency and authority obligations | — | 209 | — | 209 | |||||||||||||
Corporate bonds | — | 419 | — | 419 | |||||||||||||
Foreign government and government agency obligations | — | 137 | — | 137 | |||||||||||||
Mortgage-backed securities | — | 228 | — | 228 | |||||||||||||
Total fixed maturities | — | 993 | — | 993 | |||||||||||||
Equity securities | 629 | 1,221 | — | 1,850 | |||||||||||||
Other assets | 28 | 20 | 7 | 55 | |||||||||||||
$ | 657 | $ | 2,282 | $ | 7 | $ | 2,946 | ||||||||||
December 31, 2013 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(in millions) | |||||||||||||||||
Short term investments | $ | — | $ | 37 | $ | — | $ | 37 | |||||||||
Fixed maturities | |||||||||||||||||
U.S. government and government agency | — | 224 | — | 224 | |||||||||||||
and authority obligations | |||||||||||||||||
Corporate bonds | — | 370 | 1 | 371 | |||||||||||||
Foreign government and government | — | 104 | — | 104 | |||||||||||||
agency obligations | |||||||||||||||||
Mortgage-backed securities | — | 211 | 6 | 217 | |||||||||||||
Total fixed maturities | — | 909 | 7 | 916 | |||||||||||||
Equity securities | 573 | 1,145 | — | 1,718 | |||||||||||||
Other assets | 21 | 14 | 11 | 46 | |||||||||||||
$ | 594 | $ | 2,105 | $ | 18 | $ | 2,717 | ||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share: | ||||||||||||
Years Ended December 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in millions except for per | |||||||||||||
share amounts) | |||||||||||||
Basic earnings per share: | |||||||||||||
Net income | $ | 2,100 | $ | 2,345 | $ | 1,545 | |||||||
Weighted average shares outstanding | 242.9 | 258.2 | 269.5 | ||||||||||
Basic earnings per share | $ | 8.65 | $ | 9.08 | $ | 5.73 | |||||||
Diluted earnings per share: | |||||||||||||
Net income | $ | 2,100 | $ | 2,345 | $ | 1,545 | |||||||
Weighted average shares outstanding | 242.9 | 258.2 | 269.5 | ||||||||||
Additional shares from assumed issuance of shares under stock-based compensation awards | 0.6 | 1.2 | 1.9 | ||||||||||
Weighted average shares and potential shares assumed outstanding for computing diluted earnings per share | 243.5 | 259.4 | 271.4 | ||||||||||
Diluted earnings per share | $ | 8.62 | $ | 9.04 | $ | 5.69 | |||||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||
Common Stock Activity | The activity of Chubb’s common stock was as follows: | ||||||||||||||||||||||||
Years Ended December 31 | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(number of shares) | |||||||||||||||||||||||||
Common stock issued | |||||||||||||||||||||||||
Balance, beginning and end of year | 371,980,460 | 371,980,460 | 371,980,460 | ||||||||||||||||||||||
Treasury stock | |||||||||||||||||||||||||
Balance, beginning of year | 123,673,969 | 110,217,445 | 99,519,509 | ||||||||||||||||||||||
Repurchase of shares | 16,893,455 | 14,887,701 | 13,094,640 | ||||||||||||||||||||||
Share activity under stock-based employee compensation plans | (1,016,353 | ) | (1,431,177 | ) | (2,396,704 | ) | |||||||||||||||||||
Balance, end of year | 139,551,071 | 123,673,969 | 110,217,445 | ||||||||||||||||||||||
Common stock outstanding, end of year | 232,429,389 | 248,306,491 | 261,763,015 | ||||||||||||||||||||||
Comparison of Shareholders' Equity on GAAP Basis and Policyholders' Surplus on Statutory Basis | A comparison of shareholders’ equity on a GAAP basis and policyholders’ surplus on a statutory basis is as follows: | ||||||||||||||||||||||||
December 31 | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
GAAP | Statutory | GAAP | Statutory | ||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
P&C Group | $ | 17,786 | $ | 15,127 | $ | 17,398 | $ | 15,024 | |||||||||||||||||
Corporate and other | (1,490 | ) | (1,301 | ) | |||||||||||||||||||||
$ | 16,296 | $ | 16,097 | ||||||||||||||||||||||
Comparison of GAAP and Statutory Net Income (Loss) | A comparison of GAAP and statutory net income (loss) is as follows: | ||||||||||||||||||||||||
Years Ended December 31 | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
GAAP | Statutory | GAAP | Statutory | GAAP | Statutory | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
P&C Group | $ | 2,330 | $ | 2,399 | $ | 2,480 | $ | 2,485 | $ | 1,791 | $ | 1,936 | |||||||||||||
Corporate and other | (230 | ) | (135 | ) | (246 | ) | |||||||||||||||||||
$ | 2,100 | $ | 2,345 | $ | 1,545 | ||||||||||||||||||||
Quarterly_Financial_Data_Table
Quarterly Financial Data (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Summary of Quarterly Financial Data | Summarized unaudited quarterly financial data for 2014 and 2013 are shown below. In management’s opinion, the interim financial data contain all adjustments, consisting of normal recurring items, necessary to present fairly the results of operations for the interim periods. | ||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
March 31 | June 30 | September 30 | December 31 | ||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
(in millions except for per share amounts) | |||||||||||||||||||||||||||||||||
Revenues | $ | 3,506 | $ | 3,517 | $ | 3,542 | $ | 3,551 | $ | 3,574 | $ | 3,403 | $ | 3,476 | $ | 3,476 | |||||||||||||||||
Losses and expenses | 2,903 | 2,601 | 2,864 | 2,755 | 2,756 | 2,664 | 2,714 | 2,690 | |||||||||||||||||||||||||
Federal and foreign income tax | 154 | 260 | 179 | 217 | 224 | 198 | 204 | 217 | |||||||||||||||||||||||||
Net income | $ | 449 | $ | 656 | $ | 499 | $ | 579 | $ | 594 | $ | 541 | $ | 558 | $ | 569 | |||||||||||||||||
Basic earnings per share | $ | 1.81 | $ | 2.49 | $ | 2.03 | $ | 2.22 | $ | 2.47 | $ | 2.11 | $ | 2.35 | $ | 2.25 | |||||||||||||||||
Diluted earnings per share | $ | 1.8 | $ | 2.48 | $ | 2.03 | $ | 2.21 | $ | 2.47 | $ | 2.1 | $ | 2.35 | $ | 2.24 | |||||||||||||||||
Underwriting ratios | |||||||||||||||||||||||||||||||||
Losses to premiums earned | 61.1 | % | 52.3 | % | 58.7 | % | 56.7 | % | 54 | % | 53 | % | 53.8 | % | 54.7 | % | |||||||||||||||||
Expenses to premiums written | 32.1 | 32.3 | 31.3 | 32.1 | 31.8 | 32.7 | 30.5 | 30.8 | |||||||||||||||||||||||||
Combined | 93.2 | % | 84.6 | % | 90 | % | 88.8 | % | 85.8 | % | 85.7 | % | 84.3 | % | 85.5 | % | |||||||||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2011 |
Conversion of Stock [Line Items] | ||||
Cash | $52 | $47 | $50 | $58 |
Alterra Common Stock [Member] | ||||
Conversion of Stock [Line Items] | ||||
Holdings of common stock and warrants, cost basis | 177 | |||
Alterra Warrants [Member] | ||||
Conversion of Stock [Line Items] | ||||
Holdings of common stock and warrants, cost basis | 63 | |||
Markel Corporation [Member] | ||||
Conversion of Stock [Line Items] | ||||
Transferred, common stock value | 226 | |||
Cash | $98 |
Invested_Assets_and_Related_In2
Invested Assets and Related Income - Amortized Cost and Fair Value of Fixed Maturities and Equity Securities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Investment Holdings [Line Items] | ||
Fixed maturities, Amortized Cost | $36,958 | $35,959 |
Fixed maturities, Gross Unrealized Appreciation | 1,884 | 1,457 |
Fixed maturities, Gross Unrealized Depreciation | 62 | 325 |
Fixed maturities, Fair Value | 38,780 | 37,091 |
Equity securities, Amortized Cost | 1,089 | 1,057 |
Equity securities, Gross Unrealized Appreciation | 894 | 756 |
Equity securities, Gross Unrealized Depreciation | 19 | 3 |
Equity securities, Fair Value | 1,964 | 1,810 |
Tax Exempt [Member] | ||
Investment Holdings [Line Items] | ||
Fixed maturities, Amortized Cost | 18,614 | 17,808 |
Fixed maturities, Gross Unrealized Appreciation | 1,174 | 802 |
Fixed maturities, Gross Unrealized Depreciation | 16 | 189 |
Fixed maturities, Fair Value | 19,772 | 18,421 |
Taxable [Member] | ||
Investment Holdings [Line Items] | ||
Fixed maturities, Amortized Cost | 18,344 | 18,151 |
Fixed maturities, Gross Unrealized Appreciation | 710 | 655 |
Fixed maturities, Gross Unrealized Depreciation | 46 | 136 |
Fixed maturities, Fair Value | 19,008 | 18,670 |
Taxable [Member] | Residential Mortgage-backed Securities [Member] | ||
Investment Holdings [Line Items] | ||
Fixed maturities, Amortized Cost | 192 | 277 |
Fixed maturities, Gross Unrealized Appreciation | 20 | 23 |
Fixed maturities, Gross Unrealized Depreciation | 1 | 1 |
Fixed maturities, Fair Value | 211 | 299 |
Taxable [Member] | Commercial Mortgage-backed Securities [Member] | ||
Investment Holdings [Line Items] | ||
Fixed maturities, Amortized Cost | 1,069 | 1,339 |
Fixed maturities, Gross Unrealized Appreciation | 22 | 29 |
Fixed maturities, Gross Unrealized Depreciation | 1 | 3 |
Fixed maturities, Fair Value | 1,090 | 1,365 |
Taxable [Member] | U.S. Government and Government Agency and Authority Obligations [Member] | ||
Investment Holdings [Line Items] | ||
Fixed maturities, Amortized Cost | 1,962 | 784 |
Fixed maturities, Gross Unrealized Appreciation | 46 | 27 |
Fixed maturities, Gross Unrealized Depreciation | 1 | 9 |
Fixed maturities, Fair Value | 2,007 | 802 |
Taxable [Member] | Corporate Bonds [Member] | ||
Investment Holdings [Line Items] | ||
Fixed maturities, Amortized Cost | 8,741 | 9,032 |
Fixed maturities, Gross Unrealized Appreciation | 327 | 370 |
Fixed maturities, Gross Unrealized Depreciation | 40 | 88 |
Fixed maturities, Fair Value | 9,028 | 9,314 |
Taxable [Member] | Foreign Government and Government Agency Obligations [Member] | ||
Investment Holdings [Line Items] | ||
Fixed maturities, Amortized Cost | 6,380 | 6,719 |
Fixed maturities, Gross Unrealized Appreciation | 295 | 206 |
Fixed maturities, Gross Unrealized Depreciation | 3 | 35 |
Fixed maturities, Fair Value | $6,672 | $6,890 |
Invested_Assets_and_Related_In3
Invested Assets and Related Income - Summary of Fair Value of Tax Exempt Fixed Maturities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Fixed maturities, Fair Value | $38,780 | $37,091 |
Tax Exempt [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Fixed maturities, Fair Value | 19,772 | 18,421 |
Tax Exempt [Member] | Tax Exempt Fixed Maturities [Member] | Special Revenue Bonds [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Fixed maturities, Fair Value | 12,936 | 11,717 |
Tax Exempt [Member] | Tax Exempt Fixed Maturities [Member] | State General Obligation Bonds [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Fixed maturities, Fair Value | 2,415 | 2,292 |
Tax Exempt [Member] | Tax Exempt Fixed Maturities [Member] | Municipal and Political Subdivision General Obligation Bonds [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Fixed maturities, Fair Value | 2,378 | 2,220 |
Tax Exempt [Member] | Tax Exempt Fixed Maturities [Member] | Pre-Refunded Bonds [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Fixed maturities, Fair Value | $2,043 | $2,192 |
Invested_Assets_and_Related_In4
Invested Assets and Related Income - Fair Value and Amortized Cost of Tax Exempt Fixed Maturities Other Than Pre-Refunded Bonds (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
New York [Member] | ||
Schedule of Available-For-Sale Securities [Line Items] | ||
Fair Value | $2,262 | $1,839 |
Amortized Cost | 2,135 | 1,809 |
Texas [Member] | ||
Schedule of Available-For-Sale Securities [Line Items] | ||
Fair Value | 1,946 | 1,990 |
Amortized Cost | 1,829 | 1,904 |
California [Member] | ||
Schedule of Available-For-Sale Securities [Line Items] | ||
Fair Value | 1,507 | 1,139 |
Amortized Cost | 1,422 | 1,093 |
Illinois [Member] | ||
Schedule of Available-For-Sale Securities [Line Items] | ||
Fair Value | 1,086 | 1,116 |
Amortized Cost | 1,022 | 1,094 |
Florida [Member] | ||
Schedule of Available-For-Sale Securities [Line Items] | ||
Fair Value | 1,080 | 903 |
Amortized Cost | 1,017 | 877 |
Special Revenue Bonds [Member] | New York [Member] | ||
Schedule of Available-For-Sale Securities [Line Items] | ||
Fair Value | 2,046 | 1,611 |
Special Revenue Bonds [Member] | Texas [Member] | ||
Schedule of Available-For-Sale Securities [Line Items] | ||
Fair Value | 883 | 930 |
Special Revenue Bonds [Member] | California [Member] | ||
Schedule of Available-For-Sale Securities [Line Items] | ||
Fair Value | 1,098 | 859 |
Special Revenue Bonds [Member] | Illinois [Member] | ||
Schedule of Available-For-Sale Securities [Line Items] | ||
Fair Value | 608 | 577 |
Special Revenue Bonds [Member] | Florida [Member] | ||
Schedule of Available-For-Sale Securities [Line Items] | ||
Fair Value | 850 | 757 |
Municipal and Political Subdivision General Obligation Bonds [Member] | New York [Member] | ||
Schedule of Available-For-Sale Securities [Line Items] | ||
Fair Value | 173 | 197 |
Municipal and Political Subdivision General Obligation Bonds [Member] | Texas [Member] | ||
Schedule of Available-For-Sale Securities [Line Items] | ||
Fair Value | 852 | 830 |
Municipal and Political Subdivision General Obligation Bonds [Member] | California [Member] | ||
Schedule of Available-For-Sale Securities [Line Items] | ||
Fair Value | 153 | 82 |
Municipal and Political Subdivision General Obligation Bonds [Member] | Illinois [Member] | ||
Schedule of Available-For-Sale Securities [Line Items] | ||
Fair Value | 381 | 483 |
Municipal and Political Subdivision General Obligation Bonds [Member] | Florida [Member] | ||
Schedule of Available-For-Sale Securities [Line Items] | ||
Fair Value | 63 | 38 |
State General Obligation Bonds [Member] | New York [Member] | ||
Schedule of Available-For-Sale Securities [Line Items] | ||
Fair Value | 43 | 31 |
State General Obligation Bonds [Member] | Texas [Member] | ||
Schedule of Available-For-Sale Securities [Line Items] | ||
Fair Value | 211 | 230 |
State General Obligation Bonds [Member] | California [Member] | ||
Schedule of Available-For-Sale Securities [Line Items] | ||
Fair Value | 256 | 198 |
State General Obligation Bonds [Member] | Illinois [Member] | ||
Schedule of Available-For-Sale Securities [Line Items] | ||
Fair Value | 97 | 56 |
State General Obligation Bonds [Member] | Florida [Member] | ||
Schedule of Available-For-Sale Securities [Line Items] | ||
Fair Value | $167 | $108 |
Invested_Assets_and_Related_In5
Invested Assets and Related Income - Fair Value and Amortized Cost of Foreign Government and Government Agency Fixed Maturities (Detail) (Foreign Government and Government Agency Obligations [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Canada [Member] | ||
Schedule of Available-For-Sale Securities [Line Items] | ||
Fair Value | $1,893 | $1,993 |
Amortized Cost | 1,823 | 1,953 |
United Kingdom [Member] | ||
Schedule of Available-For-Sale Securities [Line Items] | ||
Fair Value | 1,230 | 1,026 |
Amortized Cost | 1,163 | 1,004 |
Germany [Member] | ||
Schedule of Available-For-Sale Securities [Line Items] | ||
Fair Value | 1,102 | 1,241 |
Amortized Cost | 1,045 | 1,211 |
Australia [Member] | ||
Schedule of Available-For-Sale Securities [Line Items] | ||
Fair Value | 746 | 739 |
Amortized Cost | 700 | 700 |
Brazil [Member] | ||
Schedule of Available-For-Sale Securities [Line Items] | ||
Fair Value | 232 | 270 |
Amortized Cost | $231 | $270 |
Invested_Assets_and_Related_In6
Invested Assets and Related Income - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | Investment | |
Schedule of Available-For-Sale Securities [Line Items] | ||
Fixed maturities, Fair Value | $38,780 | $37,091 |
Approximate number of individual fixed maturities in unrealized loss position | 735 | |
Approximate number of individual equity securities in unrealized loss position | 15 | |
Cumulative credit-related losses recognized in net income | 18 | 20 |
Taxable [Member] | ||
Schedule of Available-For-Sale Securities [Line Items] | ||
Fixed maturities, Fair Value | 19,008 | 18,670 |
Taxable [Member] | Supranational Organization Issued [Member] | ||
Schedule of Available-For-Sale Securities [Line Items] | ||
Fixed maturities, Fair Value | $469 | $547 |
Invested_Assets_and_Related_In7
Invested Assets and Related Income - Fair Value and Amortized Cost of Fixed Maturities by Contractual Maturity (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Schedule of Available-For-Sale Securities [Line Items] | ||
Due in one year or less, Fair Value | $2,947 | |
Due after one year through five years, Fair Value | 12,906 | |
Due after five years through ten years, Fair Value | 12,814 | |
Due after ten years, Fair Value | 8,812 | |
Subtotal fixed maturities, Fair Value | 37,479 | |
Total fixed maturities, Fair Value | 38,780 | 37,091 |
Due in one year or less, Amortized Cost | 2,922 | |
Due after one year through five years, Amortized Cost | 12,406 | |
Due after five years through ten years, Amortized Cost | 12,041 | |
Due after ten years, Amortized Cost | 8,328 | |
Subtotal fixed maturities, Amortized Cost | 35,697 | |
Fixed maturities, Amortized Cost | 36,958 | 35,959 |
Residential Mortgage-backed Securities [Member] | ||
Schedule of Available-For-Sale Securities [Line Items] | ||
Taxable, Fair Value | 211 | |
Taxable, Amortized Cost | 192 | |
Commercial Mortgage-backed Securities [Member] | ||
Schedule of Available-For-Sale Securities [Line Items] | ||
Taxable, Fair Value | 1,090 | |
Taxable, Amortized Cost | $1,069 |
Invested_Assets_and_Related_In8
Invested Assets and Related Income - Components of Unrealized Appreciation or Depreciation of Investments (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Investments, Debt and Equity Securities [Abstract] | ||
Fixed maturities, Gross Unrealized Appreciation | $1,884 | $1,457 |
Fixed maturities, Gross Unrealized Depreciation | 62 | 325 |
Fixed maturities, Unrealized appreciation (depreciation), Net | 1,822 | 1,132 |
Equity securities, Gross Unrealized Appreciation | 894 | 756 |
Equity securities, Gross Unrealized Depreciation | 19 | 3 |
AvailableForSaleEquitySecuritiesAccumulatedGrossUnrealizedGainLossBeforeTax | 875 | 753 |
Total fixed maturities and equity securities, Unrealized appreciation (depreciation), Net | 2,697 | 1,885 |
Deferred income tax liability | 944 | 660 |
Total fixed maturities and equity securities, Unrealized appreciation (depreciation), Net of tax | $1,753 | $1,225 |
Invested_Assets_and_Related_In9
Invested Assets and Related Income - Fair Value and Gross Unrealized Depreciation of Investments in Unrealized Loss Position (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Investment Holdings [Line Items] | ||
Investment securities, Continuous unrealized loss position, Less Than 12 Months, Fair Value | $3,176 | $8,089 |
Investment securities, Continuous unrealized loss position, Less Than 12 Months, Gross Unrealized Depreciation | 39 | 262 |
Investment securities, Continuous unrealized loss position, 12 Months or More, Fair Value | 1,521 | 692 |
Investment securities, Continuous unrealized loss position, 12 Months or More, Gross Unrealized Depreciation | 42 | 66 |
Investment securities, Continuous unrealized loss position, Fair Value, Total | 4,697 | 8,781 |
Investment securities, Continuous unrealized loss position, Gross Unrealized Depreciation, Total | 81 | 328 |
Fixed Maturities [Member] | ||
Investment Holdings [Line Items] | ||
Investment securities, Continuous unrealized loss position, Less Than 12 Months, Fair Value | 3,109 | 8,048 |
Investment securities, Continuous unrealized loss position, Less Than 12 Months, Gross Unrealized Depreciation | 28 | 259 |
Investment securities, Continuous unrealized loss position, 12 Months or More, Fair Value | 1,510 | 692 |
Investment securities, Continuous unrealized loss position, 12 Months or More, Gross Unrealized Depreciation | 34 | 66 |
Investment securities, Continuous unrealized loss position, Fair Value, Total | 4,619 | 8,740 |
Investment securities, Continuous unrealized loss position, Gross Unrealized Depreciation, Total | 62 | 325 |
Equity Securities [Member] | ||
Investment Holdings [Line Items] | ||
Investment securities, Continuous unrealized loss position, Less Than 12 Months, Fair Value | 67 | 41 |
Investment securities, Continuous unrealized loss position, Less Than 12 Months, Gross Unrealized Depreciation | 11 | 3 |
Investment securities, Continuous unrealized loss position, 12 Months or More, Fair Value | 11 | |
Investment securities, Continuous unrealized loss position, 12 Months or More, Gross Unrealized Depreciation | 8 | |
Investment securities, Continuous unrealized loss position, Fair Value, Total | 78 | 41 |
Investment securities, Continuous unrealized loss position, Gross Unrealized Depreciation, Total | 19 | 3 |
Tax Exempt [Member] | Fixed Maturities [Member] | ||
Investment Holdings [Line Items] | ||
Investment securities, Continuous unrealized loss position, Less Than 12 Months, Fair Value | 422 | 3,417 |
Investment securities, Continuous unrealized loss position, Less Than 12 Months, Gross Unrealized Depreciation | 3 | 144 |
Investment securities, Continuous unrealized loss position, 12 Months or More, Fair Value | 305 | 307 |
Investment securities, Continuous unrealized loss position, 12 Months or More, Gross Unrealized Depreciation | 13 | 45 |
Investment securities, Continuous unrealized loss position, Fair Value, Total | 727 | 3,724 |
Investment securities, Continuous unrealized loss position, Gross Unrealized Depreciation, Total | 16 | 189 |
Taxable [Member] | Fixed Maturities [Member] | ||
Investment Holdings [Line Items] | ||
Investment securities, Continuous unrealized loss position, Less Than 12 Months, Fair Value | 2,687 | 4,631 |
Investment securities, Continuous unrealized loss position, Less Than 12 Months, Gross Unrealized Depreciation | 25 | 115 |
Investment securities, Continuous unrealized loss position, 12 Months or More, Fair Value | 1,205 | 385 |
Investment securities, Continuous unrealized loss position, 12 Months or More, Gross Unrealized Depreciation | 21 | 21 |
Investment securities, Continuous unrealized loss position, Fair Value, Total | 3,892 | 5,016 |
Investment securities, Continuous unrealized loss position, Gross Unrealized Depreciation, Total | 46 | 136 |
Taxable [Member] | U.S. Government and Government Agency and Authority Obligations [Member] | Fixed Maturities [Member] | ||
Investment Holdings [Line Items] | ||
Investment securities, Continuous unrealized loss position, Less Than 12 Months, Fair Value | 936 | 213 |
Investment securities, Continuous unrealized loss position, Less Than 12 Months, Gross Unrealized Depreciation | 1 | 6 |
Investment securities, Continuous unrealized loss position, 12 Months or More, Fair Value | 36 | 35 |
Investment securities, Continuous unrealized loss position, 12 Months or More, Gross Unrealized Depreciation | 3 | |
Investment securities, Continuous unrealized loss position, Fair Value, Total | 972 | 248 |
Investment securities, Continuous unrealized loss position, Gross Unrealized Depreciation, Total | 1 | 9 |
Taxable [Member] | Corporate Bonds [Member] | Fixed Maturities [Member] | ||
Investment Holdings [Line Items] | ||
Investment securities, Continuous unrealized loss position, Less Than 12 Months, Fair Value | 1,327 | 2,526 |
Investment securities, Continuous unrealized loss position, Less Than 12 Months, Gross Unrealized Depreciation | 23 | 76 |
Investment securities, Continuous unrealized loss position, 12 Months or More, Fair Value | 888 | 222 |
Investment securities, Continuous unrealized loss position, 12 Months or More, Gross Unrealized Depreciation | 17 | 12 |
Investment securities, Continuous unrealized loss position, Fair Value, Total | 2,215 | 2,748 |
Investment securities, Continuous unrealized loss position, Gross Unrealized Depreciation, Total | 40 | 88 |
Taxable [Member] | Foreign Government and Government Agency Obligations [Member] | Fixed Maturities [Member] | ||
Investment Holdings [Line Items] | ||
Investment securities, Continuous unrealized loss position, Less Than 12 Months, Fair Value | 318 | 1,735 |
Investment securities, Continuous unrealized loss position, Less Than 12 Months, Gross Unrealized Depreciation | 1 | 32 |
Investment securities, Continuous unrealized loss position, 12 Months or More, Fair Value | 207 | 75 |
Investment securities, Continuous unrealized loss position, 12 Months or More, Gross Unrealized Depreciation | 2 | 3 |
Investment securities, Continuous unrealized loss position, Fair Value, Total | 525 | 1,810 |
Investment securities, Continuous unrealized loss position, Gross Unrealized Depreciation, Total | 3 | 35 |
Residential Mortgage-backed Securities [Member] | Taxable [Member] | Fixed Maturities [Member] | ||
Investment Holdings [Line Items] | ||
Investment securities, Continuous unrealized loss position, Less Than 12 Months, Fair Value | 4 | |
Investment securities, Continuous unrealized loss position, 12 Months or More, Fair Value | 7 | 14 |
Investment securities, Continuous unrealized loss position, 12 Months or More, Gross Unrealized Depreciation | 1 | 1 |
Investment securities, Continuous unrealized loss position, Fair Value, Total | 7 | 18 |
Investment securities, Continuous unrealized loss position, Gross Unrealized Depreciation, Total | 1 | 1 |
Commercial Mortgage-backed Securities [Member] | Taxable [Member] | Fixed Maturities [Member] | ||
Investment Holdings [Line Items] | ||
Investment securities, Continuous unrealized loss position, Less Than 12 Months, Fair Value | 106 | 153 |
Investment securities, Continuous unrealized loss position, Less Than 12 Months, Gross Unrealized Depreciation | 1 | |
Investment securities, Continuous unrealized loss position, 12 Months or More, Fair Value | 67 | 39 |
Investment securities, Continuous unrealized loss position, 12 Months or More, Gross Unrealized Depreciation | 1 | 2 |
Investment securities, Continuous unrealized loss position, Fair Value, Total | 173 | 192 |
Investment securities, Continuous unrealized loss position, Gross Unrealized Depreciation, Total | $1 | $3 |
Recovered_Sheet1
Invested Assets and Related Income - Change in Unrealized Appreciation or Depreciation of Investments Carried at Fair Value (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Investments, Debt and Equity Securities [Abstract] | |||
Change in unrealized appreciation of fixed maturities | $690 | ($1,546) | $256 |
Change in unrealized appreciation of equity securities | 122 | 334 | 171 |
Change in unrealized appreciation of fixed maturities and equity securities | 812 | -1,212 | 427 |
Deferred income tax (credit) | 284 | -424 | 150 |
Total change in unrealized appreciation (depreciation) of fixed maturities and equity securities, Net of tax | $528 | ($788) | $277 |
Recovered_Sheet2
Invested Assets and Related Income - Sources of Net Investment Income (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Gross investment income | $1,394 | $1,465 | $1,556 |
Investment Expenses | 42 | 49 | 38 |
Net Investment income | 1,352 | 1,416 | 1,518 |
Fixed Maturities [Member] | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Gross investment income | 1,314 | 1,380 | 1,465 |
Equity Securities [Member] | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Gross investment income | 41 | 38 | 40 |
Short Term Investments [Member] | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Gross investment income | 18 | 16 | 18 |
Other [Member] | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Gross investment income | $21 | $31 | $33 |
Recovered_Sheet3
Invested Assets and Related Income - Realized Investment Gains and Losses (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Investments, Debt and Equity Securities [Abstract] | |||
Fixed maturities, Gross realized gains | $126 | $62 | $124 |
Fixed maturities, Gross realized losses | -36 | -42 | -20 |
Fixed maturities, Other-than-temporary impairment losses | -5 | -2 | -5 |
Total fixed maturities | 85 | 18 | 99 |
Equity securities, Gross realized gains | 137 | 204 | 68 |
Equity securities, Gross realized losses | -1 | ||
Equity securities, Other-than-temporary impairment losses | -2 | -9 | -40 |
Total equity securities | 135 | 194 | 28 |
Other invested assets | 149 | 190 | 66 |
Total Realized Investment Gains, Net | $369 | $402 | $193 |
Deferred_Policy_Acquisition_Co2
Deferred Policy Acquisition Costs - Policy Acquisition Costs Deferred and Related Amortization Reflected in Operating Results (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Balance, beginning of year | $1,255 | $1,206 | $1,210 |
Costs deferred during year | |||
Commissions and brokerage | 2,073 | 1,979 | 1,919 |
Premium taxes and assessments | 258 | 263 | 247 |
Underwriting and policy issuance costs | 262 | 271 | 248 |
Total costs deferred during year | 2,593 | 2,513 | 2,414 |
Foreign currency translation effect | -16 | -10 | -7 |
Amortization during year | -2,548 | -2,454 | -2,411 |
Balance, end of year | $1,284 | $1,255 | $1,206 |
Property_and_Equipment_Schedul
Property and Equipment - Schedule of Property and Equipment (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Abstract] | ||
Cost | $488 | $501 |
Accumulated depreciation | 239 | 243 |
Property and Equipment, net of accumulated depreciation | $249 | $258 |
Property_and_Equipment_Additio
Property and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense related to property and equipment | $54 | $55 | $54 |
Unpaid_Losses_and_Loss_Expense2
Unpaid Losses and Loss Expenses - Reconciliation of Beginning and Ending Liability for Unpaid Losses and Loss Expenses (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Insurance [Abstract] | |||
Gross liability, beginning of year | $23,146 | $23,963 | $23,068 |
Reinsurance recoverable, beginning of year | 1,802 | 1,941 | 1,739 |
Net liability, beginning of year | 21,344 | 22,022 | 21,329 |
Net incurred losses and loss expenses related to | |||
Current year | 7,621 | 7,232 | 8,121 |
Prior years | -636 | -712 | -614 |
Net incurred losses and loss expenses, total | 6,985 | 6,520 | 7,507 |
Net payments for losses and loss expenses related to | |||
Current year | 2,496 | 2,150 | 2,323 |
Prior years | 4,534 | 4,952 | 4,493 |
Net payments for losses and loss expenses, total | 7,030 | 7,102 | 6,816 |
Foreign currency translation effect | -260 | -96 | 2 |
Net liability, end of year | 21,039 | 21,344 | 22,022 |
Reinsurance recoverable, end of year | 1,639 | 1,802 | 1,941 |
Gross liability, end of year | $22,678 | $23,146 | $23,963 |
Unpaid_Losses_and_Loss_Expense3
Unpaid Losses and Loss Expenses - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Manufacturers_Distributors | |||
Areas | |||
Insurance [Abstract] | |||
Favorable development on net unpaid losses and loss expenses established as of the previous year end | $636 | $712 | $614 |
Favorable development experienced in the professional liability classes other than fidelity | 320 | 260 | 200 |
Aggregate favorable development experienced in the personal and commercial liability classes | 205 | 160 | 250 |
Adverse development for losses related to asbestos and toxic waste claims | 100 | 106 | 83 |
Aggregate favorable development experienced in the personal and commercial property classes | 60 | 265 | 125 |
Favorable development experienced in workers' compensation class | 50 | ||
Amount related to catastrophes | 30 | ||
Adverse development experienced in the fidelity class | 50 | 60 | |
Favorable development experienced in the personal automobile business | 35 | 40 | |
Favorable development experienced in the surety business | 30 | 25 | |
Favorable development experienced in the runoff of the reinsurance assumed business | $45 | ||
Number of manufacturers and distributors of asbestos products that filed for bankruptcy protection | 110 | ||
Number of areas of exposure for P&C Group's insureds | 2 |
Debt_and_Credit_Arrangements_L
Debt and Credit Arrangements - Long Term Debt (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Long Term Debt | $3,300 | $3,300 |
5.75% Notes due May 15, 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 600 | 600 |
6.6% Debentures due August 15, 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 100 | 100 |
6.8% Debentures due November 15, 2031 [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 200 | 200 |
6% Notes due May 11, 2037 [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 800 | 800 |
6.5% Notes due May 15, 2038 [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 600 | 600 |
6.375% Capital Securities due March 29, 2067 [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | $1,000 | $1,000 |
Debt_and_Credit_Arrangements_L1
Debt and Credit Arrangements - Long Term Debt (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Debt Instrument [Line Items] | |
Interest rate of capital securities march 29, 2067 | 6.38% |
5.75% Notes due May 15, 2018 [Member] | |
Debt Instrument [Line Items] | |
Interest rate due on notes and debentures | 5.75% |
Debt instrument maturity date | 15-May-18 |
6.6% Debentures due August 15, 2018 [Member] | |
Debt Instrument [Line Items] | |
Interest rate due on notes and debentures | 6.60% |
Debt instrument maturity date | 15-Aug-18 |
6.8% Debentures due November 15, 2031 [Member] | |
Debt Instrument [Line Items] | |
Interest rate due on notes and debentures | 6.80% |
Debt instrument maturity date | 15-Nov-31 |
6% Notes due May 11, 2037 [Member] | |
Debt Instrument [Line Items] | |
Interest rate due on notes and debentures | 6.00% |
Debt instrument maturity date | 11-May-37 |
6.5% Notes due May 15, 2038 [Member] | |
Debt Instrument [Line Items] | |
Interest rate due on notes and debentures | 6.50% |
Debt instrument maturity date | 15-May-38 |
6.375% Capital Securities due March 29, 2067 [Member] | |
Debt Instrument [Line Items] | |
Interest rate of capital securities march 29, 2067 | 6.38% |
Debt instrument maturity date | 29-Mar-67 |
Debt_and_Credit_Arrangements_A
Debt and Credit Arrangements - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Times | |||
Debt Instrument [Line Items] | |||
Long Term Debt | $3,300 | $3,300 | |
Interest rate of capital securities through April 14, 2017 | 6.38% | ||
Interest rate on capital securities after April 14, 2017, plus three-month LIBOR rate | 2.25% | ||
Consecutive years payment of interest may be deferred on capital securities | 10 years | ||
End date of restrictions to redeem capital securities | 29-Mar-47 | ||
Capital securities redeemable date | 15-Apr-17 | ||
Interest costs incurred | 209 | 213 | 224 |
Interest paid | 205 | 213 | 220 |
Maximum unsecured borrowings permitted under credit agreement | 500 | 500 | |
Revolving credit agreement maturity date | 24-Sep-17 | ||
Number of times permitted for increase in available credit, per year | 2 | ||
Maximum facility amount permitted to request an increase in the credit available | 750 | ||
Extended additional maturity period | 1 year | ||
Borrowings under credit agreement | 0 | ||
6.375% Capital Securities due March 29, 2067 [Member] | |||
Debt Instrument [Line Items] | |||
Long Term Debt | 1,000 | 1,000 | |
Scheduled maturity date | 15-Apr-37 | ||
Final maturity date | 29-Mar-67 | ||
Interest rate of capital securities through April 14, 2017 | 6.38% | ||
Debt instrument maturity date | 29-Mar-67 | ||
6.8% Debentures due November 15, 2031 [Member] | |||
Debt Instrument [Line Items] | |||
Long Term Debt | $200 | $200 | |
Interest rate due on notes and debentures | 6.80% | ||
Debt instrument maturity date | 15-Nov-31 |
Debt_and_Credit_Arrangements_A1
Debt and Credit Arrangements - Amounts of Long Term Debt due Annually (Detail) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Debt Disclosure [Abstract] | |
2015 | |
2016 | |
2017 | |
2018 | 700 |
2019 |
Federal_and_Foreign_Income_Tax2
Federal and Foreign Income Tax - Income Tax Expense and Taxes Paid (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income tax expense and taxes paid | |||||||||||
Current tax, United States | $617 | $791 | $276 | ||||||||
Current tax, Foreign | 124 | 91 | 143 | ||||||||
Deferred tax, principally United States | 20 | 10 | 32 | ||||||||
Federal and foreign income tax | 204 | 224 | 179 | 154 | 217 | 198 | 217 | 260 | 761 | 892 | 451 |
Federal and foreign income taxes paid | $571 | $789 | $472 |
Federal_and_Foreign_Income_Tax3
Federal and Foreign Income Tax - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Income before federal and foreign income taxes from U.S. operations | $2,424 | $2,766 | $1,373 |
Income before federal and foreign income taxes from foreign operations | 437 | 471 | 623 |
Deferred income tax assets valuation allowance | $13 | $13 |
Federal_and_Foreign_Income_Tax4
Federal and Foreign Income Tax - Reconciliation of Effective Income Tax Rate and Statutory Federal Corporate Tax Rate (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||||||||||
Income before federal and foreign income tax | $2,861 | $3,237 | $1,996 | ||||||||
Tax at statutory federal income tax rate | 1,001 | 1,133 | 699 | ||||||||
Tax exempt interest income | -212 | -222 | -233 | ||||||||
Other, net | -28 | -19 | -15 | ||||||||
Federal and foreign income tax | $204 | $224 | $179 | $154 | $217 | $198 | $217 | $260 | $761 | $892 | $451 |
Income before federal and foreign income tax, percentage of Pre-Tax Income | |||||||||||
Tax at statutory federal income tax rate, percentage of Pre-Tax Income | 35.00% | 35.00% | 35.00% | ||||||||
Tax exempt interest income, percentage of Pre-Tax Income | -7.40% | -6.80% | -11.70% | ||||||||
Other, net, percentage of Pre-Tax Income | -1.00% | -0.60% | -0.70% | ||||||||
Federal and foreign income tax, percentage of Pre-Tax Income | 26.60% | 27.60% | 22.60% |
Federal_and_Foreign_Income_Tax5
Federal and Foreign Income Tax - Tax Effects of Temporary Differences that Gave Rise to Deferred Income Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Deferred income tax assets | ||
Unpaid losses and loss expenses | $509 | $524 |
Unearned premiums | 364 | 350 |
Foreign tax credits | 963 | 867 |
Employee compensation | 144 | 142 |
Postretirement benefits | 272 | 95 |
Other-than-temporary impairment losses | 298 | 291 |
Other, net | 29 | |
Total deferred income tax assets | 2,579 | 2,269 |
Deferred income tax liabilities | ||
Deferred policy acquisition costs | 367 | 356 |
Unremitted earnings of foreign subsidiaries | 1,075 | 970 |
Unrealized appreciation of investments | 944 | 660 |
Other invested assets | 208 | 184 |
Other, net | 52 | |
Total deferred income tax liabilities | 2,594 | 2,222 |
Net deferred income tax asset (liability) | ($15) | $47 |
Reinsurance_Effect_of_Reinsura
Reinsurance - Effect of Reinsurance on Premiums Written and Earned (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Insurance [Abstract] | |||
Direct premiums written | $12,976 | $12,804 | $12,647 |
Assumed reinsurance | 596 | 503 | 423 |
Ceded reinsurance | -980 | -1,083 | -1,200 |
Net premiums written | 12,592 | 12,224 | 11,870 |
Direct premiums earned | 12,776 | 12,717 | 12,596 |
Assumed reinsurance | 562 | 476 | 422 |
Ceded reinsurance | -1,010 | -1,127 | -1,180 |
Net premiums earned | $12,328 | $12,066 | $11,838 |
Reinsurance_Additional_Informa
Reinsurance - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Insurance [Abstract] | |||
Ceded losses and loss expenses incurred | $273 | $400 | $586 |
StockBased_Employee_Compensati2
Stock-Based Employee Compensation Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost related to stock-based compensation plan | $85 | $89 | $84 |
Total income tax benefit related to stock-based compensation plan | 30 | 31 | 29 |
Unrecognized compensation cost related to nonvested awards | 78 | ||
Weighted average period of years over which unrecognized compensation cost will be reflected in operating results | 1 year 8 months 12 days | ||
Maximum number of shares in respect to which stock-based awards may be granted under the plan most recently approved by shareholders | 7,400,000 | ||
Shares available for grant | 8,200,000 | ||
Performance period in which performance unit awards are based | 3 years | ||
Stock option expiration period | 10 years | ||
Weighted average fair value per stock option granted | $15.48 | $14.95 | $11.95 |
Total intrinsic value of stock options exercised | 2 | 16 | 40 |
Cash received from the exercise of stock options | 3 | 10 | 47 |
Tax benefit realized with respect to the exercise of stock options | 1 | 5 | 13 |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average fair value per share of the restricted stock units and performance units granted | $86.67 | $83.75 | $68.64 |
Total fair value of the restricted stock units and performance units vested | 66 | 72 | 74 |
Performance Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average fair value per share of the restricted stock units and performance units granted | $76.32 | $98.46 | $63.38 |
Total fair value of the restricted stock units and performance units vested | $17 | $64 | $70 |
StockBased_Employee_Compensati3
Stock-Based Employee Compensation Plans - Additional Information With Respect to Restricted Stock Units and Performance Units (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Nonvested, January 1, 2014 | 2,127,647 | ||
Number of Shares, Granted | 625,197 | ||
Number of Shares, Vested | -762,349 | ||
Number of Shares, Forfeited | -82,551 | ||
Number of Shares, Nonvested, December 31, 2014 | 1,907,944 | 2,127,647 | |
Weighted Average Grant Date Fair Value on Number of Shares, Nonvested, January 1, 2014 | $70.23 | ||
Weighted Average Grant Date Fair Value on Number of Shares, Granted | $86.67 | $83.75 | $68.64 |
Weighted Average Grant Date Fair Value on Number of Shares, Vested | $60.53 | ||
Weighted Average Grant Date Fair Value on Number of Shares, Forfeited | $81.16 | ||
Weighted Average Grant Date Fair Value on Number of Shares, Nonvested, December 31, 2014 | $79.02 | $70.23 | |
Performance Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Nonvested, January 1, 2014 | 861,141 | ||
Number of Shares, Granted | 421,271 | ||
Number of Shares, Vested | -456,176 | ||
Number of Shares, Forfeited | -4,041 | ||
Number of Shares, Nonvested, December 31, 2014 | 822,195 | 861,141 | |
Weighted Average Grant Date Fair Value on Number of Shares, Nonvested, January 1, 2014 | $79.87 | ||
Weighted Average Grant Date Fair Value on Number of Shares, Granted | $76.32 | $98.46 | $63.38 |
Weighted Average Grant Date Fair Value on Number of Shares, Vested | $63.38 | ||
Weighted Average Grant Date Fair Value on Number of Shares, Forfeited | $77.87 | ||
Weighted Average Grant Date Fair Value on Number of Shares, Nonvested, December 31, 2014 | $87.21 | $79.87 |
StockBased_Employee_Compensati4
Stock-Based Employee Compensation Plans - Additional Information With Respect to Restricted Stock Units and Performance Units (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Percentage of number of shares that may be earned related to performance units, Minimum | 0.00% |
Percentage of number of shares that may be earned related to performance units, Maximum | 200.00% |
Percentage of performance units earned as it relates to vested shares | 35.20% |
Number of performance units earned as it relates to vested shares | 160,574 |
StockBased_Employee_Compensati5
Stock-Based Employee Compensation Plans - Additional Information with Respect to Stock Options (Detail) (USD $) | 12 Months Ended |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Number of Shares Outstanding, January 1, 2014 | 251,687 |
Number of Shares, Granted | 65,605 |
Number of Shares, Exercised | -54,932 |
Number of Shares, Forfeited | -6,949 |
Number of Shares Outstanding, December 31, 2014 | 255,411 |
Number of Shares Exercisable, December 31, 2014 | 128,880 |
Weighted Average Exercise Price on Number of Shares Outstanding, January 1, 2014 | $62.52 |
Weighted Average Exercise Price on Number of Shares, Granted | $86.59 |
Weighted Average Exercise Price on Number of Shares, Exercised | $59.08 |
Weighted Average Exercise Price on Number of Shares, Forfeited | $82.83 |
Weighted Average Exercise Price on Number of Shares Outstanding, December 31, 2014 | $68.89 |
Weighted Average Exercise Price on Number of Shares Exercisable, December 31, 2014 | $55.24 |
Weighted Average Remaining Contractual Term (in years) on Number of Shares Outstanding | 6 years 7 months 6 days |
Weighted Average Remaining Contractual Term (in years) on Number of Shares Exercisable, December 31, 2014 | 4 years 9 months 18 days |
Aggregate Intrinsic Value on Number of Shares Outstanding, December 31, 2014 | $9 |
Aggregate Intrinsic Value on Number of Shares Exercisable, December 31, 2014 | $6 |
Employee_Benefits_Funded_Statu
Employee Benefits - Funded Status of Pension and Other Postretirement Benefit Plans (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value, end of year | $2,946 | $2,717 | |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation, beginning of year | 2,777 | 2,894 | |
Service cost | 86 | 95 | 88 |
Interest cost | 140 | 125 | 124 |
Actuarial loss (gain) | 536 | -261 | |
Benefits paid | -85 | -75 | |
Foreign currency translation effect | -19 | -1 | |
Benefit obligation, end of year | 3,435 | 2,777 | 2,894 |
Plan assets at fair value, beginning of year | 2,717 | 2,305 | |
Actual return on plan assets | 240 | 409 | |
Employer contributions | 92 | 82 | |
Benefits paid | -85 | -75 | |
Foreign currency translation effect | -18 | -4 | |
Plan assets at fair value, end of year | 2,946 | 2,717 | 2,305 |
Funded status at end of year, included in other liabilities | 489 | 60 | |
Other Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation, beginning of year | 394 | 470 | |
Service cost | 10 | 13 | 12 |
Interest cost | 19 | 19 | 20 |
Actuarial loss (gain) | 74 | -97 | |
Benefits paid | -10 | -11 | |
Foreign currency translation effect | -2 | ||
Benefit obligation, end of year | 485 | 394 | 470 |
Plan assets at fair value, beginning of year | 130 | 96 | |
Actual return on plan assets | 12 | 27 | |
Employer contributions | 11 | 18 | |
Benefits paid | -10 | -11 | |
Plan assets at fair value, end of year | 143 | 130 | 96 |
Funded status at end of year, included in other liabilities | $342 | $264 |
Employee_Benefits_Net_Actuaria
Employee Benefits - Net Actuarial Loss (Gain) and Prior Service Cost Included in Accumulated Other Comprehensive Income (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss (gain) | $842 | $396 |
Prior service cost | 14 | 16 |
Total net actuarial loss and prior service cost included in accumulated other comprehensive income | 856 | 412 |
Other Postretirement Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss (gain) | 58 | -13 |
Prior service cost | 1 | 1 |
Total net actuarial loss and prior service cost included in accumulated other comprehensive income | $59 | ($12) |
Employee_Benefits_Additional_I
Employee Benefits - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation for the pension plans | $2,923 | $2,381 | |
Estimated aggregate net actuarial loss and prior service cost to be amortized next year | 65 | ||
Effect of one percent increase in health care cost trend rate on the accumulated other postretirement benefit obligation | 92 | ||
Effect of one percent decrease in health care cost trend rate on the accumulated other postretirement benefit obligation | 73 | ||
Effect of one percent increase in health care cost trend rate on net other postretirement benefit cost | 5 | ||
Effect of one percent decrease in health care cost trend rate on net other postretirement benefit cost | 4 | ||
Postretirement benefit, description | The health care cost trend rate assumption has a significant effect on the amount of the accumulated other postretirement benefit obligation and the net other postretirement benefit cost reported. To illustrate, a one percent increase in the trend rate for each year would increase the accumulated other postretirement benefit obligation at December 31, 2014 by approximately $92 million and the aggregate of the service and interest cost components of net other postretirement benefit cost for the year ended December 31, 2014 by approximately $5 million. A one percent decrease in the trend rate for each year would decrease the accumulated other postretirement benefit obligation at December 31, 2014 by approximately $73 million and the aggregate of the service and interest cost components of net other postretirement benefit cost for the year ended December 31, 2014 by approximately $4 million. | ||
Employer elective matching contributions related to employee's eligible pre-tax contributions | Equal to 100% | ||
Employer contributions for Capital Accumulation Plan | 30 | 29 | 26 |
Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
The portion of employer elective matching contribution related to employee's eligible pre-tax contributions | 4.00% | ||
Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Minimum range of portfolio allocation to equity securities | 55.00% | ||
Maximum range of portfolio allocation to equity securities | 65.00% | ||
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets invested in pooled funds | 1,556 | 1,425 | |
Other Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets invested in pooled funds | $143 | $130 |
Employee_Benefits_Weighted_Ave
Employee Benefits - Weighted Average Assumptions Used to Determine Benefit Obligations (Detail) | Dec. 31, 2014 | Dec. 31, 2013 |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.30% | 5.20% |
Rate of compensation increase | 4.50% | 4.50% |
Other Postretirement Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.30% | 5.20% |
Rate of compensation increase |
Employee_Benefits_Components_o
Employee Benefits - Components of Net Pension and Other Postretirement Benefit Costs Reflected in Net Income (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Benefits [Member] | |||
Components of net pension and other postretirement benefit costs reflected in net income | |||
Service cost | $86 | $95 | $88 |
Interest cost | 140 | 125 | 124 |
Expected return on plan assets | -186 | -165 | -155 |
Amortization of net actuarial loss and prior service cost and other | 35 | 90 | 80 |
Total benefit costs reflected in net income | 75 | 145 | 137 |
Other Postretirement Benefits [Member] | |||
Components of net pension and other postretirement benefit costs reflected in net income | |||
Service cost | 10 | 13 | 12 |
Interest cost | 19 | 19 | 20 |
Expected return on plan assets | -9 | -7 | -6 |
Amortization of net actuarial loss and prior service cost and other | 3 | 3 | |
Total benefit costs reflected in net income | $20 | $28 | $29 |
Employee_Benefits_Changes_in_P
Employee Benefits - Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Benefits [Member] | |||
Changes in plan assets and benefit obligations recognized in other comprehensive income | |||
Net actuarial loss (gain) | $479 | ($505) | $139 |
Amortization of net actuarial loss and prior service cost and other | -35 | -90 | -80 |
Total changes in plan assets and benefit obligations recognized in other comprehensive income | 444 | -595 | 59 |
Other Postretirement Benefits [Member] | |||
Changes in plan assets and benefit obligations recognized in other comprehensive income | |||
Net actuarial loss (gain) | 71 | -117 | -11 |
Amortization of net actuarial loss and prior service cost and other | -3 | -3 | |
Total changes in plan assets and benefit obligations recognized in other comprehensive income | $71 | ($120) | ($14) |
Employee_Benefits_Weighted_Ave1
Employee Benefits - Weighted Average Assumptions Used to Determine Net Pension and Other Postretirement Benefit Costs (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 5.20% | 4.40% | 5.00% |
Rate of compensation increase | 4.50% | 4.50% | 4.50% |
Expected long term rate of return on plan assets | 7.50% | 7.50% | 7.75% |
Other Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 5.20% | 4.40% | 5.00% |
Rate of compensation increase | |||
Expected long term rate of return on plan assets | 7.50% | 7.50% | 7.75% |
Employee_Benefits_Weighted_Ave2
Employee Benefits - Weighted Average Health Care Cost Trend Rate Assumptions (Detail) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ||
Health care cost trend rate for next year | 7.30% | 7.60% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4.50% | 4.50% |
Year that the rate reaches the ultimate trend rate | 2028 | 2028 |
Employee_Benefits_Fair_Values_
Employee Benefits - Fair Values of Pension Plan Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | $2,946 | $2,717 |
Short Term Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 48 | 37 |
Fixed Maturities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 993 | 916 |
Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 1,850 | 1,718 |
Mortgage-backed Securities [Member] | Fixed Maturities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 228 | 217 |
U.S. Government and Government Agency and Authority Obligations [Member] | Fixed Maturities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 209 | 224 |
Corporate Bonds [Member] | Fixed Maturities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 419 | 371 |
Foreign Government and Government Agency Obligations [Member] | Fixed Maturities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 137 | 104 |
Other Assets [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | $55 | $46 |
Employee_Benefits_Estimated_Be
Employee Benefits - Estimated Benefits Expected to be Paid (Detail) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 | $105 |
2016 | 115 |
2017 | 151 |
2018 | 132 |
2019 | 143 |
2020-2024 | 868 |
Other Postretirement Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 | 12 |
2016 | 14 |
2017 | 15 |
2018 | 17 |
2019 | 18 |
2020-2024 | $117 |
Comprehensive_Income_Component
Comprehensive Income - Components of Other Comprehensive Income or Loss (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net unrealized holding gains (losses) arising during the year, Before Tax | $1,032 | ($1,000) | $556 |
Unrealized other-than-temporary impairment losses arising during the year, Before Tax | -2 | ||
Reclassification adjustment for net realized gains included in net income, Before Tax | 220 | 212 | 127 |
Net unrealized gains (losses) recognized in other comprehensive income or loss, Before Tax | 812 | -1,212 | 427 |
Postretirement benefit gain (loss) not yet recognized in net income arising during the year, Before Tax | -550 | 622 | -128 |
Reclassification adjustment for the amortization of net actuarial loss and prior service cost included in net income, Before Tax | -35 | -93 | -83 |
Net change in postretirement benefit costs not yet recognized in net income, Before Tax | -515 | 715 | -45 |
Foreign currency translation losses, Before Tax | -180 | -111 | -16 |
Total other comprehensive income (loss), Before Tax | 117 | -608 | 366 |
Net unrealized holding gains (losses) arising during the year, Income Tax | 361 | -350 | 195 |
Unrealized other-than-temporary impairment losses arising during the year, Income Tax | -1 | ||
Reclassification adjustment for net realized gains included in net income, Income Tax | 77 | 74 | 44 |
Net unrealized gains (losses) recognized in other comprehensive income or loss, Income Tax | 284 | -424 | 150 |
Postretirement benefit gain (loss) not yet recognized in net income arising during the year, Income Tax | -192 | 218 | -45 |
Reclassification adjustment for the amortization of net actuarial loss and prior service cost included in net income, Income Tax | -13 | -33 | -30 |
Net change in postretirement benefit costs not yet recognized in net income, Income Tax | -179 | 251 | -15 |
Foreign currency translation losses, Income Tax | -63 | -39 | -5 |
Total other comprehensive income (loss), Income Tax | 42 | -212 | 130 |
Net unrealized holding gains (losses) arising during the year, Net of Tax | 671 | -650 | 361 |
Unrealized other-than-temporary impairment losses arising during the year, Net of Tax | -1 | ||
Reclassification adjustment for net realized gains included in net income, Net of Tax | 143 | 138 | 83 |
Net unrealized gains (losses) recognized in other comprehensive income or loss, Net of Tax | 528 | -788 | 277 |
Postretirement benefit gain (loss) not yet recognized in net income arising during the period, Net of Tax | -358 | 404 | -83 |
Reclassification adjustment for the amortization of net actuarial loss and prior service cost included in net income, Net of Tax | -22 | -60 | -53 |
Net change in postretirement benefit costs not yet recognized in net income, Net of Tax | -336 | 464 | -30 |
Foreign currency translation losses, Net of Tax | -117 | -72 | -11 |
Total Other Comprehensive Income (Loss) Net of Tax | $75 | ($396) | $236 |
Commitments_and_Contingent_Lia2
Commitments and Contingent Liabilities - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Commitments and Contingencies Disclosure [Abstract] | ||
Notional amount of future obligations under Chubb Financial Solutions' (CFS) derivative contracts | $55 | $80 |
Fair value of future obligations under Chubb Financial Solutions' derivative contracts | 2 | 2 |
Year through which office facilities under lease agreements will expire | 2029 | |
Office facility leases renewal options in years, Lower end of range | 2 years | |
Office facility leases renewal options in years, Higher end of range | 10 years | |
Commitments to fund limited partnership investments | $860 | |
Period for which commitments can be called by the partnerships | 5 years or less |
Commitments_and_Contingent_Lia3
Commitments and Contingent Liabilities - Rent Expense (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Rent expense | $80 | $84 | $82 |
Office Facilities [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Rent expense | 67 | 71 | 71 |
Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Rent expense | $13 | $13 | $11 |
Commitments_and_Contingent_Lia4
Commitments and Contingent Liabilities - Future Minimum Rental Payments Required Under Non-Cancellable Operating Leases (Detail) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
2015 | $63 |
2016 | 52 |
2017 | 47 |
2018 | 40 |
2019 | 30 |
After 2019 | 81 |
Total | $313 |
Segments_Information_Additiona
Segments Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Operations | |
Business_Unit | |
Segment Reporting [Abstract] | |
Number of segment operations | 2 |
Number of business units | 4 |
Segments_Information_Revenues_
Segments Information - Revenues, Income Before Income Tax and Assets of Each Operating Segment (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues | |||||||||||
Premiums earned related to insurance business | $12,327 | $12,069 | $11,834 | ||||||||
Premiums earned related to reinsurance assumed | 1 | -3 | 4 | ||||||||
Net Premiums earned | 12,328 | 12,066 | 11,838 | ||||||||
Investment Income | 1,394 | 1,465 | 1,556 | ||||||||
Corporate and other | 33 | 43 | 46 | ||||||||
Realized investment gains, net | 369 | 402 | 193 | ||||||||
TOTAL REVENUES | 3,476 | 3,574 | 3,542 | 3,506 | 3,476 | 3,403 | 3,551 | 3,517 | 14,098 | 13,947 | 13,595 |
Insurance underwriting income (loss) | 1,357 | 1,607 | 498 | ||||||||
Reinsurance assumed underwriting income | 9 | 47 | |||||||||
Underwriting income before deferred policy acquisition costs | 1,357 | 1,616 | 545 | ||||||||
Increase in deferred policy acquisition costs | 45 | 59 | 3 | ||||||||
Underwriting income | 1,402 | 1,675 | 548 | ||||||||
Investment income | 1,352 | 1,416 | 1,518 | ||||||||
Total property and casualty insurance | 2,727 | 3,072 | 2,040 | ||||||||
Corporate and other | -235 | -237 | -237 | ||||||||
Realized investment gains, net | 369 | 402 | 193 | ||||||||
INCOME BEFORE FEDERAL AND FOREIGN INCOME TAX | 2,861 | 3,237 | 1,996 | ||||||||
Assets | |||||||||||
Total assets | 51,286 | 50,433 | 51,286 | 50,433 | 52,184 | ||||||
Property and Casualty Insurance [Member] | |||||||||||
Revenues | |||||||||||
Investment Income | 1,368 | 1,436 | 1,518 | ||||||||
TOTAL REVENUES | 13,696 | 13,502 | 13,356 | ||||||||
Investment income | 1,329 | 1,391 | 1,482 | ||||||||
Other income (charges) | -4 | 6 | 10 | ||||||||
Operating Segments [Member] | |||||||||||
Assets | |||||||||||
Total assets | 49,297 | 48,278 | 49,297 | 48,278 | 49,441 | ||||||
Operating Segments [Member] | Personal Insurance [Member] | |||||||||||
Revenues | |||||||||||
Premiums earned related to insurance business | 4,418 | 4,214 | 4,024 | ||||||||
Insurance underwriting income (loss) | 370 | 509 | 192 | ||||||||
Operating Segments [Member] | Commercial Insurance [Member] | |||||||||||
Revenues | |||||||||||
Premiums earned related to insurance business | 5,281 | 5,237 | 5,144 | ||||||||
Insurance underwriting income (loss) | 492 | 692 | 44 | ||||||||
Operating Segments [Member] | Specialty Insurance [Member] | |||||||||||
Revenues | |||||||||||
Premiums earned related to insurance business | 2,628 | 2,618 | 2,666 | ||||||||
Insurance underwriting income (loss) | 495 | 406 | 262 | ||||||||
Corporate and Other [Member] | |||||||||||
Assets | |||||||||||
Total assets | 2,078 | 2,248 | 2,078 | 2,248 | 2,830 | ||||||
Adjustments and Eliminations [Member] | |||||||||||
Assets | |||||||||||
Total assets | ($89) | ($93) | ($89) | ($93) | ($87) |
Segments_Information_Revenues_1
Segments Information - Revenues of Property and Casualty Group by Geographic Area (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues by geographic area | |||||||||||
Revenues | $3,476 | $3,574 | $3,542 | $3,506 | $3,476 | $3,403 | $3,551 | $3,517 | $14,098 | $13,947 | $13,595 |
P&C Group [Member] | |||||||||||
Revenues by geographic area | |||||||||||
Revenues | 13,696 | 13,502 | 13,356 | ||||||||
Reportable Geographical Components [Member] | P&C Group [Member] | United States [Member] | |||||||||||
Revenues by geographic area | |||||||||||
Revenues | 10,448 | 10,205 | 9,996 | ||||||||
Reportable Geographical Components [Member] | P&C Group [Member] | International [Member] | |||||||||||
Revenues by geographic area | |||||||||||
Revenues | $3,248 | $3,297 | $3,360 |
Fair_Values_of_Financial_Instr2
Fair Values of Financial Instruments - Carrying Values and Fair Values of Financial Instruments (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short Term Investments | $1,318 | $2,114 |
Fixed maturities | 38,780 | 37,091 |
Equity securities | 1,964 | 1,810 |
Long Term Debt | 3,300 | 3,300 |
Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short Term Investments | 1,318 | 2,114 |
Fixed maturities | 38,780 | 37,091 |
Equity securities | 1,964 | 1,810 |
Long Term Debt | 3,300 | 3,300 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short Term Investments | 1,318 | 2,114 |
Fixed maturities | 38,780 | 37,091 |
Equity securities | 1,964 | 1,810 |
Long Term Debt | $4,013 | $3,806 |
Fair_Values_of_Financial_Instr3
Fair Values of Financial Instruments - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of fair value amounts for fixed maturities provided by a pricing service | 99.00% | 99.00% | |
Plan assets at fair value | $2,946 | $2,717 | |
Other Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | $143 | $130 | $96 |
Fair_Values_of_Financial_Instr4
Fair Values of Financial Instruments - Fair Value of Financial Instruments Categorized Based Upon Lowest Level of Input (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Short Term Investments | $1,318 | $2,114 |
Fixed maturities, Fair Value | 38,780 | 37,091 |
Equity securities | 1,964 | 1,810 |
Long Term Debt | 3,300 | 3,300 |
Fair Value [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Short Term Investments | 1,318 | 2,114 |
Fixed maturities, Fair Value | 38,780 | 37,091 |
Equity securities | 1,964 | 1,810 |
Total fixed maturities, equity securities and other invested assets, Fair Value | 42,062 | 41,015 |
Long Term Debt | 4,013 | 3,806 |
Tax Exempt [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fixed maturities, Fair Value | 19,772 | 18,421 |
Tax Exempt [Member] | Fair Value [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fixed maturities, Fair Value | 19,772 | 18,421 |
Taxable [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fixed maturities, Fair Value | 19,008 | 18,670 |
Taxable [Member] | U.S. Government and Government Agency and Authority Obligations [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fixed maturities, Fair Value | 2,007 | 802 |
Taxable [Member] | Corporate Bonds [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fixed maturities, Fair Value | 9,028 | 9,314 |
Taxable [Member] | Foreign Government and Government Agency Obligations [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fixed maturities, Fair Value | 6,672 | 6,890 |
Taxable [Member] | Fair Value [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fixed maturities, Fair Value | 19,008 | 18,670 |
Taxable [Member] | Fair Value [Member] | U.S. Government and Government Agency and Authority Obligations [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fixed maturities, Fair Value | 2,007 | 802 |
Taxable [Member] | Fair Value [Member] | Corporate Bonds [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fixed maturities, Fair Value | 9,028 | 9,314 |
Taxable [Member] | Fair Value [Member] | Foreign Government and Government Agency Obligations [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fixed maturities, Fair Value | 6,672 | 6,890 |
Taxable [Member] | Fair Value [Member] | Residential Mortgage-backed Securities [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fixed maturities, Fair Value | 211 | 299 |
Taxable [Member] | Fair Value [Member] | Commercial Mortgage-backed Securities [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fixed maturities, Fair Value | 1,090 | 1,365 |
Level 1 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Short Term Investments | 206 | 399 |
Fixed maturities, Fair Value | ||
Equity securities | 1,958 | 1,803 |
Total fixed maturities, equity securities and other invested assets, Fair Value | 2,164 | 2,202 |
Long Term Debt | ||
Level 1 [Member] | Tax Exempt [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fixed maturities, Fair Value | ||
Level 1 [Member] | Taxable [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fixed maturities, Fair Value | ||
Level 1 [Member] | Taxable [Member] | U.S. Government and Government Agency and Authority Obligations [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fixed maturities, Fair Value | ||
Level 1 [Member] | Taxable [Member] | Corporate Bonds [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fixed maturities, Fair Value | ||
Level 1 [Member] | Taxable [Member] | Foreign Government and Government Agency Obligations [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fixed maturities, Fair Value | ||
Level 1 [Member] | Taxable [Member] | Residential Mortgage-backed Securities [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fixed maturities, Fair Value | ||
Level 1 [Member] | Taxable [Member] | Commercial Mortgage-backed Securities [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fixed maturities, Fair Value | ||
Level 2 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Short Term Investments | 1,112 | 1,715 |
Fixed maturities, Fair Value | 38,651 | 36,916 |
Equity securities | ||
Total fixed maturities, equity securities and other invested assets, Fair Value | 39,763 | 38,631 |
Long Term Debt | 4,013 | 3,806 |
Level 2 [Member] | Tax Exempt [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fixed maturities, Fair Value | 19,769 | 18,416 |
Level 2 [Member] | Taxable [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fixed maturities, Fair Value | 18,882 | 18,500 |
Level 2 [Member] | Taxable [Member] | U.S. Government and Government Agency and Authority Obligations [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fixed maturities, Fair Value | 2,007 | 802 |
Level 2 [Member] | Taxable [Member] | Corporate Bonds [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fixed maturities, Fair Value | 8,912 | 9,179 |
Level 2 [Member] | Taxable [Member] | Foreign Government and Government Agency Obligations [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fixed maturities, Fair Value | 6,663 | 6,881 |
Level 2 [Member] | Taxable [Member] | Residential Mortgage-backed Securities [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fixed maturities, Fair Value | 210 | 293 |
Level 2 [Member] | Taxable [Member] | Commercial Mortgage-backed Securities [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fixed maturities, Fair Value | 1,090 | 1,345 |
Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Short Term Investments | ||
Fixed maturities, Fair Value | 129 | 175 |
Equity securities | 6 | 7 |
Total fixed maturities, equity securities and other invested assets, Fair Value | 135 | 182 |
Long Term Debt | ||
Level 3 [Member] | Tax Exempt [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fixed maturities, Fair Value | 3 | 5 |
Level 3 [Member] | Taxable [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fixed maturities, Fair Value | 126 | 170 |
Level 3 [Member] | Taxable [Member] | U.S. Government and Government Agency and Authority Obligations [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fixed maturities, Fair Value | ||
Level 3 [Member] | Taxable [Member] | Corporate Bonds [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fixed maturities, Fair Value | 116 | 135 |
Level 3 [Member] | Taxable [Member] | Foreign Government and Government Agency Obligations [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fixed maturities, Fair Value | 9 | 9 |
Level 3 [Member] | Taxable [Member] | Residential Mortgage-backed Securities [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fixed maturities, Fair Value | 1 | 6 |
Level 3 [Member] | Taxable [Member] | Commercial Mortgage-backed Securities [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fixed maturities, Fair Value | $20 |
Fair_Values_of_Financial_Instr5
Fair Values of Financial Instruments - Fair Values of Pension Plan Assets Categorized Based Upon Lowest Level of Input (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | $2,946 | $2,717 |
Short Term Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 48 | 37 |
Fixed Maturities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 993 | 916 |
Fixed Maturities [Member] | U.S. Government and Government Agency and Authority Obligations [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 209 | 224 |
Fixed Maturities [Member] | Corporate Bonds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 419 | 371 |
Fixed Maturities [Member] | Foreign Government and Government Agency Obligations [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 137 | 104 |
Fixed Maturities [Member] | Mortgage-backed Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 228 | 217 |
Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 1,850 | 1,718 |
Other Assets [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 55 | 46 |
Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 657 | 594 |
Level 1 [Member] | Short Term Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | ||
Level 1 [Member] | Fixed Maturities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | ||
Level 1 [Member] | Fixed Maturities [Member] | U.S. Government and Government Agency and Authority Obligations [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | ||
Level 1 [Member] | Fixed Maturities [Member] | Corporate Bonds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | ||
Level 1 [Member] | Fixed Maturities [Member] | Foreign Government and Government Agency Obligations [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | ||
Level 1 [Member] | Fixed Maturities [Member] | Mortgage-backed Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | ||
Level 1 [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 629 | 573 |
Level 1 [Member] | Other Assets [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 28 | 21 |
Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 2,282 | 2,105 |
Level 2 [Member] | Short Term Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 48 | 37 |
Level 2 [Member] | Fixed Maturities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 993 | 909 |
Level 2 [Member] | Fixed Maturities [Member] | U.S. Government and Government Agency and Authority Obligations [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 209 | 224 |
Level 2 [Member] | Fixed Maturities [Member] | Corporate Bonds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 419 | 370 |
Level 2 [Member] | Fixed Maturities [Member] | Foreign Government and Government Agency Obligations [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 137 | 104 |
Level 2 [Member] | Fixed Maturities [Member] | Mortgage-backed Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 228 | 211 |
Level 2 [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 1,221 | 1,145 |
Level 2 [Member] | Other Assets [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 20 | 14 |
Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 7 | 18 |
Level 3 [Member] | Short Term Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | ||
Level 3 [Member] | Fixed Maturities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 7 | |
Level 3 [Member] | Fixed Maturities [Member] | U.S. Government and Government Agency and Authority Obligations [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | ||
Level 3 [Member] | Fixed Maturities [Member] | Corporate Bonds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 1 | |
Level 3 [Member] | Fixed Maturities [Member] | Foreign Government and Government Agency Obligations [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | ||
Level 3 [Member] | Fixed Maturities [Member] | Mortgage-backed Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 6 | |
Level 3 [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | ||
Level 3 [Member] | Other Assets [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | $7 | $11 |
Earnings_Per_Share_Computation
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Basic earnings per share: | |||||||||||
Net Income | $558 | $594 | $499 | $449 | $569 | $541 | $579 | $656 | $2,100 | $2,345 | $1,545 |
Weighted average shares outstanding | 242.9 | 258.2 | 269.5 | ||||||||
Basic earnings per share | $2.35 | $2.47 | $2.03 | $1.81 | $2.25 | $2.11 | $2.22 | $2.49 | $8.65 | $9.08 | $5.73 |
Diluted earnings per share: | |||||||||||
Net Income | $558 | $594 | $499 | $449 | $569 | $541 | $579 | $656 | $2,100 | $2,345 | $1,545 |
Weighted average shares outstanding | 242.9 | 258.2 | 269.5 | ||||||||
Additional shares from assumed issuance of shares under stock-based compensation awards | 0.6 | 1.2 | 1.9 | ||||||||
Weighted average shares and potential shares assumed outstanding for computing diluted earnings per share | 243.5 | 259.4 | 271.4 | ||||||||
Diluted earnings per share | $2.35 | $2.47 | $2.03 | $1.80 | $2.24 | $2.10 | $2.21 | $2.48 | $8.62 | $9.04 | $5.69 |
Shareholders_Equity_Common_Sto
Shareholders' Equity - Common Stock Activity (Detail) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Treasury stock balance, beginning of year | 123,673,969 | 110,217,445 | 99,519,509 | |
Repurchase of shares | 16,893,455 | 14,887,701 | 13,094,640 | |
Share activity under stock-based employee compensation plans | -1,016,353 | -1,431,177 | -2,396,704 | |
Treasury stock balance, end of year | 139,551,071 | 123,673,969 | 110,217,445 | |
Common stock outstanding, end of year | 232,429,389 | 248,306,491 | 261,763,015 | |
Common Stock [Member] | ||||
Balance, beginning of year | 371,980,460 | |||
Balance, end of year | 371,980,460 | 371,980,460 | 371,980,460 | 371,980,460 |
Shareholders_Equity_Additional
Shareholders' Equity - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Class of Stock [Line Items] | ||
Remaining under the share repurchase authorization | $52,000,000 | |
Authorized repurchase of the Corporation's common stock | 1,300,000,000 | |
Dividends paid by domestic property and casualty insurance subsidiaries to parent | 2,000,000,000 | |
Maximum [Member] | ||
Class of Stock [Line Items] | ||
Maximum dividend distribution that may be made by the property and casualty insurance subsidiaries to parent company during 2015 without prior regulatory approval | 1,900,000,000 | |
Federal Insurance Company [Member] | ||
Class of Stock [Line Items] | ||
Aggregate statutory capital and surplus | 14,800,000,000 | |
Risk-based capital requirement | 5,000,000,000 | |
P&C Group [Member] | ||
Class of Stock [Line Items] | ||
Aggregate statutory capital and surplus | $15,127,000,000 | $15,024,000,000 |
Shareholders_Equity_Comparison
Shareholders' Equity - Comparison of Shareholders' Equity on GAAP Basis and Policyholders' Surplus on Statutory Basis (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Comparison of shareholders' equity on a GAAP basis and policyholders' surplus on a statutory basis | |||
Shareholders' equity | $16,296 | $16,097 | $15,827 |
P&C Group [Member] | |||
Comparison of shareholders' equity on a GAAP basis and policyholders' surplus on a statutory basis | |||
Shareholders' equity | 17,786 | 17,398 | |
Policyholders' surplus | 15,127 | 15,024 | |
Corporate and Other [Member] | |||
Comparison of shareholders' equity on a GAAP basis and policyholders' surplus on a statutory basis | |||
Shareholders' equity | ($1,490) | ($1,301) |
Shareholders_Equity_Comparison1
Shareholders' Equity - Comparison of GAAP and Statutory Net Income (Loss) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Comparison of GAAP and statutory net income (loss) | |||||||||||
GAAP net income (loss) | $558 | $594 | $499 | $449 | $569 | $541 | $579 | $656 | $2,100 | $2,345 | $1,545 |
P&C Group [Member] | |||||||||||
Comparison of GAAP and statutory net income (loss) | |||||||||||
GAAP net income (loss) | 2,330 | 2,480 | 1,791 | ||||||||
Statutory net income | 2,399 | 2,485 | 1,936 | ||||||||
Corporate and Other [Member] | |||||||||||
Comparison of GAAP and statutory net income (loss) | |||||||||||
GAAP net income (loss) | ($230) | ($135) | ($246) |
Quarterly_Financial_Data_Summa
Quarterly Financial Data - Summary of Quarterly Financial Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $3,476 | $3,574 | $3,542 | $3,506 | $3,476 | $3,403 | $3,551 | $3,517 | $14,098 | $13,947 | $13,595 |
Losses and expenses | 2,714 | 2,756 | 2,864 | 2,903 | 2,690 | 2,664 | 2,755 | 2,601 | |||
Federal and Foreign Income Tax | 204 | 224 | 179 | 154 | 217 | 198 | 217 | 260 | 761 | 892 | 451 |
NET INCOME | $558 | $594 | $499 | $449 | $569 | $541 | $579 | $656 | $2,100 | $2,345 | $1,545 |
Basic earnings per share | $2.35 | $2.47 | $2.03 | $1.81 | $2.25 | $2.11 | $2.22 | $2.49 | $8.65 | $9.08 | $5.73 |
Diluted earnings per share | $2.35 | $2.47 | $2.03 | $1.80 | $2.24 | $2.10 | $2.21 | $2.48 | $8.62 | $9.04 | $5.69 |
Underwriting ratios | |||||||||||
Losses to premiums earned | 53.8 | 54 | 58.7 | 61.1 | 54.7 | 53 | 56.7 | 52.3 | |||
Expenses to premiums written | 30.5 | 31.8 | 31.3 | 32.1 | 30.8 | 32.7 | 32.1 | 32.3 | |||
Combined | 84.3 | 85.8 | 90 | 93.2 | 85.5 | 85.7 | 88.8 | 84.6 |
Consolidated_Summary_of_Invest1
Consolidated Summary of Investments - Other Than Investments in Related Parties (Detail) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | $40,788 |
Fair Value | 43,485 |
Amount at Which Shown in the Balance Sheet | 43,485 |
Foreign Government and Government Agency Obligations [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 6,380 |
Fair Value | 6,672 |
Amount at Which Shown in the Balance Sheet | 6,672 |
Residential Mortgage-backed Securities [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 192 |
Fair Value | 211 |
Amount at Which Shown in the Balance Sheet | 211 |
Commercial Mortgage-backed Securities [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 1,069 |
Fair Value | 1,090 |
Amount at Which Shown in the Balance Sheet | 1,090 |
Short Term Investments [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 1,318 |
Fair Value | 1,318 |
Amount at Which Shown in the Balance Sheet | 1,318 |
Fixed Maturities [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 36,958 |
Fair Value | 38,780 |
Amount at Which Shown in the Balance Sheet | 38,780 |
United States Government and Government Agencies and Authorities [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 1,593 |
Fair Value | 1,612 |
Amount at Which Shown in the Balance Sheet | 1,612 |
States, Municipalities and Political Subdivisions [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 18,983 |
Fair Value | 20,167 |
Amount at Which Shown in the Balance Sheet | 20,167 |
Public Utilities [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 1,065 |
Fair Value | 1,148 |
Amount at Which Shown in the Balance Sheet | 1,148 |
All Other Corporate Bonds [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 7,676 |
Fair Value | 7,880 |
Amount at Which Shown in the Balance Sheet | 7,880 |
Public Utilities [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 114 |
Fair Value | 216 |
Amount at Which Shown in the Balance Sheet | 216 |
Banks, Trusts and Insurance Companies [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 101 |
Fair Value | 185 |
Amount at Which Shown in the Balance Sheet | 185 |
Industrial, Miscellaneous and Other [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 835 |
Fair Value | 1,515 |
Amount at Which Shown in the Balance Sheet | 1,515 |
Total Common Stocks [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 1,050 |
Fair Value | 1,916 |
Amount at Which Shown in the Balance Sheet | 1,916 |
Non-redeemable Preferred Stocks [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 39 |
Fair Value | 48 |
Amount at Which Shown in the Balance Sheet | 48 |
Total Equity Securities [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 1,089 |
Fair Value | 1,964 |
Amount at Which Shown in the Balance Sheet | 1,964 |
Other Invested Assets [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost or Amortized Cost | 1,423 |
Fair Value | 1,423 |
Amount at Which Shown in the Balance Sheet | $1,423 |
Condensed_Financial_Informatio1
Condensed Financial Information of Parent Company - Balance Sheets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Assets | |||
Short Term Investments | $1,318 | $2,114 | |
Taxable Fixed Maturities (cost $1,213 and $1,095) | 38,780 | 37,091 | |
Equity Securities (cost $- and $-) | 1,964 | 1,810 | |
TOTAL INVESTED ASSETS | 43,485 | 42,613 | |
Other Assets | 1,138 | 1,205 | |
TOTAL ASSETS | 51,286 | 50,433 | 52,184 |
Liabilities | |||
Long Term Debt | 3,300 | 3,300 | |
Dividend Payable to Shareholders | 117 | 110 | |
Accrued Expenses and Other Liabilities | 2,299 | 1,357 | |
TOTAL LIABILITIES | 34,990 | 34,336 | |
Shareholders' Equity | |||
Preferred Stock - Authorized 8,000,000 Shares; $1 Par Value; Issued - None | |||
Common Stock - Authorized 1,200,000,000 Shares; $1 Par Value; Issued 371,980,460 Shares | 372 | 372 | |
Paid-In Surplus | 171 | 171 | |
Retained Earnings | 23,520 | 21,902 | |
Accumulated Other Comprehensive Income | 1,110 | 1,035 | |
Treasury Stock, at Cost - 139,551,071 and 123,673,969 Shares | -8,877 | -7,383 | |
TOTAL SHAREHOLDERS' EQUITY | 16,296 | 16,097 | 15,827 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 51,286 | 50,433 | |
Parent Company [Member] | |||
Assets | |||
Short Term Investments | 574 | 856 | |
Taxable Fixed Maturities (cost $1,213 and $1,095) | 1,226 | 1,110 | |
Equity Securities (cost $- and $-) | 2 | ||
TOTAL INVESTED ASSETS | 1,800 | 1,968 | |
Investment in Consolidated Subsidiaries | 17,838 | 17,455 | |
Other Assets | 168 | 165 | |
TOTAL ASSETS | 19,806 | 19,588 | |
Liabilities | |||
Long Term Debt | 3,300 | 3,300 | |
Dividend Payable to Shareholders | 117 | 110 | |
Accrued Expenses and Other Liabilities | 93 | 81 | |
TOTAL LIABILITIES | 3,510 | 3,491 | |
Shareholders' Equity | |||
Preferred Stock - Authorized 8,000,000 Shares; $1 Par Value; Issued - None | |||
Common Stock - Authorized 1,200,000,000 Shares; $1 Par Value; Issued 371,980,460 Shares | 372 | 372 | |
Paid-In Surplus | 171 | 171 | |
Retained Earnings | 23,520 | 21,902 | |
Accumulated Other Comprehensive Income | 1,110 | 1,035 | |
Treasury Stock, at Cost - 139,551,071 and 123,673,969 Shares | -8,877 | -7,383 | |
TOTAL SHAREHOLDERS' EQUITY | 16,296 | 16,097 | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $19,806 | $19,588 |
Condensed_Financial_Informatio2
Condensed Financial Information of Parent Company - Balance Sheets (Parenthetical) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, except Share data, unless otherwise specified | ||||
Fixed Maturities, cost | $36,958 | $35,959 | ||
Equity Securities, cost | 1,089 | 1,057 | ||
Preferred Stock, Shares Authorized | 8,000,000 | 8,000,000 | ||
Preferred Stock, Par Value | $1 | $1 | ||
Preferred Stock, Shares Issued | 0 | 0 | ||
Common Stock, Shares Authorized | 1,200,000,000 | 1,200,000,000 | ||
Common Stock, Par Value | $1 | $1 | ||
Common Stock, Shares Issued | 371,980,460 | 371,980,460 | ||
Treasury Stock, Shares | 139,551,071 | 123,673,969 | 110,217,445 | 99,519,509 |
Parent Company [Member] | ||||
Fixed Maturities, cost | 1,213 | 1,095 | ||
Equity Securities, cost | ||||
Preferred Stock, Shares Authorized | 8,000,000 | 8,000,000 | ||
Preferred Stock, Par Value | $1 | $1 | ||
Preferred Stock, Shares Issued | 0 | 0 | ||
Common Stock, Shares Authorized | 1,200,000,000 | 1,200,000,000 | ||
Common Stock, Par Value | $1 | $1 | ||
Common Stock, Shares Issued | 371,980,460 | 371,980,460 | ||
Treasury Stock, Shares | 139,551,071 | 123,673,969 |
Condensed_Financial_Informatio3
Condensed Financial Information of Parent Company - Statements of Income (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues | |||||||||||
Investment Income | $1,394 | $1,465 | $1,556 | ||||||||
Other Revenues | 7 | 14 | 8 | ||||||||
Realized Investment Gains (Losses), Net | 369 | 402 | 193 | ||||||||
TOTAL REVENUES | 3,476 | 3,574 | 3,542 | 3,506 | 3,476 | 3,403 | 3,551 | 3,517 | 14,098 | 13,947 | 13,595 |
Expenses | |||||||||||
Corporate Expenses | 249 | 254 | 270 | ||||||||
Investment Expenses | 42 | 49 | 38 | ||||||||
Other Expenses | 16 | 22 | 11 | ||||||||
Federal and Foreign Income Tax | 204 | 224 | 179 | 154 | 217 | 198 | 217 | 260 | 761 | 892 | 451 |
NET INCOME | 558 | 594 | 499 | 449 | 569 | 541 | 579 | 656 | 2,100 | 2,345 | 1,545 |
Other Comprehensive Income (Loss), Net of Tax | 75 | -396 | 236 | ||||||||
COMPREHENSIVE INCOME | 2,175 | 1,949 | 1,781 | ||||||||
Parent Company [Member] | |||||||||||
Revenues | |||||||||||
Investment Income | 26 | 29 | 38 | ||||||||
Other Revenues | 6 | ||||||||||
Realized Investment Gains (Losses), Net | 4 | 99 | -6 | ||||||||
TOTAL REVENUES | 30 | 134 | 32 | ||||||||
Expenses | |||||||||||
Corporate Expenses | 249 | 262 | 268 | ||||||||
Investment Expenses | 3 | 4 | 2 | ||||||||
Other Expenses | 3 | 8 | |||||||||
TOTAL EXPENSES | 255 | 274 | 270 | ||||||||
Loss before Federal and Foreign Income Tax and Equity in Net Income of Consolidated Subsidiaries | -225 | -140 | -238 | ||||||||
Federal and Foreign Income Tax | 1 | 4 | |||||||||
Loss before Equity in Net Income of Consolidated Subsidiaries | -226 | -140 | -242 | ||||||||
Equity in Net Income of Consolidated Subsidiaries | 2,326 | 2,485 | 1,787 | ||||||||
NET INCOME | 2,100 | 2,345 | 1,545 | ||||||||
Other Comprehensive Income (Loss), Net of Tax | 75 | -396 | 236 | ||||||||
COMPREHENSIVE INCOME | $2,175 | $1,949 | $1,781 |
Condensed_Financial_Informatio4
Condensed Financial Information of Parent Company - Statements of Cash Flows (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Flows from Operating Activities | |||
Net Income | $2,100 | $2,345 | $1,545 |
Adjustments to Reconcile Net Income to Net Cash Used in Operating Activities | |||
Realized Investment Losses (Gains), Net | -369 | -402 | -193 |
Other, Net | -47 | -26 | 7 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 2,153 | 1,731 | 2,299 |
Cash Flows from Investing Activities | |||
Proceeds from Fixed Maturities - Sales | 4,229 | 2,449 | 2,271 |
Proceeds from Fixed Maturities - Maturities, Calls and Redemptions | 4,231 | 4,909 | 4,290 |
Proceeds from Sales of Equity Securities | 213 | 545 | 160 |
Purchases of Fixed Maturities | -9,987 | -8,275 | -7,247 |
Investments in Other Invested Assets, Net | 315 | 498 | 293 |
Decrease in Short Term Investments, Net | 780 | 383 | -629 |
Other, Net | -6 | ||
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | -156 | 252 | -972 |
Cash Flows from Financing Activities | |||
Repayment of Long Term Debt | -275 | ||
Proceeds from Issuance of Common Stock Under Stock-Based Employee Compensation Plans | 22 | 38 | 74 |
Repurchase of Shares | -1,547 | -1,288 | -959 |
Dividends Paid to Shareholders | -475 | -450 | -438 |
NET CASH USED IN FINANCING ACTIVITIES | -2,002 | -1,981 | -1,335 |
Net Increase (Decrease) in Cash | -5 | 2 | -8 |
Cash at Beginning of Year | 52 | 50 | 58 |
CASH AT END OF YEAR | 47 | 52 | 50 |
Parent Company [Member] | |||
Cash Flows from Operating Activities | |||
Net Income | 2,100 | 2,345 | 1,545 |
Adjustments to Reconcile Net Income to Net Cash Used in Operating Activities | |||
Equity in Net Income of Consolidated Subsidiaries | -2,326 | -2,485 | -1,787 |
Realized Investment Losses (Gains), Net | -4 | -99 | 6 |
Other, Net | 9 | 21 | 57 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | -221 | -218 | -179 |
Cash Flows from Investing Activities | |||
Proceeds from Fixed Maturities - Sales | 382 | 227 | 24 |
Proceeds from Fixed Maturities - Maturities, Calls and Redemptions | 46 | 150 | 673 |
Proceeds from Sales of Equity Securities | 2 | 296 | |
Purchases of Fixed Maturities | -551 | -198 | -1,046 |
Investments in Other Invested Assets, Net | 22 | ||
Decrease in Short Term Investments, Net | 282 | 85 | 89 |
Dividends Received from Consolidated Insurance Subsidiaries | 2,021 | 1,564 | 1,760 |
Distributions Received from Consolidated Non-Insurance Subsidiaries | 1 | 1 | 1 |
Other, Net | 38 | 46 | 1 |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | 2,221 | 2,193 | 1,502 |
Cash Flows from Financing Activities | |||
Repayment of Long Term Debt | -275 | ||
Proceeds from Issuance of Common Stock Under Stock-Based Employee Compensation Plans | 22 | 38 | 74 |
Repurchase of Shares | -1,547 | -1,288 | -959 |
Dividends Paid to Shareholders | -475 | -450 | -438 |
NET CASH USED IN FINANCING ACTIVITIES | -2,000 | -1,975 | -1,323 |
Net Increase (Decrease) in Cash | |||
Cash at Beginning of Year | |||
CASH AT END OF YEAR |
Condensed_Financial_Informatio5
Condensed Financial Information of Parent Company - Statements of Cash Flows (Parenthetical) (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Condensed Financial Statements, Captions [Line Items] | |
Cash | $52 |
Alterra Common Stock [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Holdings of common stock and warrants, cost basis | 177 |
Alterra Warrants [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Holdings of common stock and warrants, cost basis | 63 |
Markel Corporation [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Transferred, common stock value | 226 |
Cash | $98 |
Consolidated_Supplementary_Ins1
Consolidated Supplementary Insurance Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Supplemental Information for Property, Casualty Insurance Underwriters [Line Items] | |||
Deferred Policy Acquisition Costs | $1,284 | $1,255 | $1,206 |
Unpaid Losses | 22,678 | 23,146 | 23,963 |
Unearned Premiums | 6,581 | 6,423 | 6,361 |
Premiums Earned | 12,328 | 12,066 | 11,838 |
Net Investment Income | 1,329 | 1,391 | 1,482 |
Insurance Losses | 6,985 | 6,520 | 7,507 |
Amortization of Deferred Policy Acquisition Costs | 2,548 | 2,454 | 2,411 |
Other Insurance Operating Costs and Expenses | 1,393 | 1,417 | 1,372 |
Premiums Written | 12,592 | 12,224 | 11,870 |
Personal Insurance [Member] | |||
Supplemental Information for Property, Casualty Insurance Underwriters [Line Items] | |||
Deferred Policy Acquisition Costs | 517 | 505 | 477 |
Unpaid Losses | 2,272 | 2,235 | 2,493 |
Unearned Premiums | 2,278 | 2,216 | 2,133 |
Premiums Earned | 4,418 | 4,214 | 4,024 |
Net Investment Income | |||
Insurance Losses | 2,540 | 2,224 | 2,417 |
Amortization of Deferred Policy Acquisition Costs | 1,053 | 982 | 942 |
Other Insurance Operating Costs and Expenses | 438 | 465 | 458 |
Premiums Written | 4,508 | 4,322 | 4,125 |
Commercial Insurance [Member] | |||
Supplemental Information for Property, Casualty Insurance Underwriters [Line Items] | |||
Deferred Policy Acquisition Costs | 504 | 493 | 477 |
Unpaid Losses | 13,161 | 13,147 | 13,288 |
Unearned Premiums | 2,876 | 2,792 | 2,794 |
Premiums Earned | 5,281 | 5,237 | 5,144 |
Net Investment Income | |||
Insurance Losses | 3,111 | 2,891 | 3,512 |
Amortization of Deferred Policy Acquisition Costs | 995 | 970 | 970 |
Other Insurance Operating Costs and Expenses | 663 | 665 | 620 |
Premiums Written | 5,402 | 5,273 | 5,174 |
Specialty Insurance [Member] | |||
Supplemental Information for Property, Casualty Insurance Underwriters [Line Items] | |||
Deferred Policy Acquisition Costs | 263 | 257 | 252 |
Unpaid Losses | 6,847 | 7,307 | 7,622 |
Unearned Premiums | 1,426 | 1,412 | 1,429 |
Premiums Earned | 2,628 | 2,618 | 2,666 |
Net Investment Income | |||
Insurance Losses | 1,333 | 1,417 | 1,622 |
Amortization of Deferred Policy Acquisition Costs | 497 | 502 | 499 |
Other Insurance Operating Costs and Expenses | 295 | 287 | 293 |
Premiums Written | 2,681 | 2,633 | 2,568 |
Reinsurance Assumed [Member] | |||
Supplemental Information for Property, Casualty Insurance Underwriters [Line Items] | |||
Deferred Policy Acquisition Costs | |||
Unpaid Losses | 398 | 457 | 560 |
Unearned Premiums | 1 | 3 | 5 |
Premiums Earned | 1 | -3 | 4 |
Net Investment Income | |||
Insurance Losses | 1 | -12 | -44 |
Amortization of Deferred Policy Acquisition Costs | 3 | ||
Other Insurance Operating Costs and Expenses | -3 | 1 | |
Premiums Written | 1 | -4 | 3 |
Investments [Member] | |||
Supplemental Information for Property, Casualty Insurance Underwriters [Line Items] | |||
Deferred Policy Acquisition Costs | |||
Unpaid Losses | |||
Unearned Premiums | |||
Premiums Earned | |||
Net Investment Income | 1,329 | 1,391 | 1,482 |
Insurance Losses | |||
Amortization of Deferred Policy Acquisition Costs | |||
Other Insurance Operating Costs and Expenses | |||
Premiums Written |