Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 22, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 0-4604 | |
Entity Registrant Name | CINCINNATI FINANCIAL CORPORATION | |
Entity Incorporation, State or Country Code | OH | |
Entity Tax Identification Number | 31-0746871 | |
Entity Address, Address Line One | 6200 S. Gilmore Road, | |
Entity Address, City or Town | Fairfield, | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 45014-5141 | |
City Area Code | 513 | |
Local Phone Number | 870-2000 | |
Title of 12(b) Security | Common stock | |
Trading Symbol | CINF | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 159,199,453 | |
Entity Central Index Key | 0000020286 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Investments | ||
Fixed maturities, at fair value (amortized cost: 2022—$12,497; 2021—$12,230) | $ 11,933 | $ 13,022 |
Equity securities, at fair value (cost: 2022—$4,205; 2021—$4,121) | 9,510 | 11,315 |
Other invested assets | 391 | 329 |
Total investments | 21,834 | 24,666 |
Cash and cash equivalents | 1,098 | 1,139 |
Investment income receivable | 141 | 144 |
Finance receivable | 87 | 98 |
Premiums receivable | 2,484 | 2,053 |
Reinsurance Recoverable | 531 | 570 |
Prepaid reinsurance premiums | 113 | 78 |
Deferred policy acquisition costs | 1,045 | 905 |
Land, building and equipment, net, for company use (accumulated depreciation: 2022—$312; 2021—$303) | 201 | 205 |
Other assets | 798 | 570 |
Separate accounts | 860 | 959 |
Total assets | 29,192 | 31,387 |
Insurance reserves | ||
Loss and loss expense reserves | 7,669 | 7,305 |
Life policy and investment contract reserves | 3,041 | 3,014 |
Unearned premiums | 3,867 | 3,271 |
Other liabilities | 1,248 | 1,092 |
Deferred income tax | 1,069 | 1,744 |
Note payable | 44 | 54 |
Long-term debt and lease obligations | 841 | 843 |
Separate accounts | 860 | 959 |
Total liabilities | 18,639 | 18,282 |
Commitments and contingent liabilities (Note 12) | ||
Shareholders' Equity | ||
Common stock, par value—$2 per share; (authorized: 2022 and 2021—500 million shares; issued: 2022 and 2021—198.3 million shares) | 397 | 397 |
Paid-in capital | 1,367 | 1,356 |
Retained earnings | 11,324 | 12,625 |
Accumulated other comprehensive income | (423) | 648 |
Treasury stock at cost (2022—39.1 million shares and 2021—38.0 million shares) | (2,112) | (1,921) |
Total shareholders' equity | 10,553 | 13,105 |
Total liabilities and shareholders' equity | $ 29,192 | $ 31,387 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Debt Securities, Available-for-sale, Amortized Cost | $ 12,497 | $ 12,230 |
Equity Securities, FV-NI, Cost | 4,205 | 4,121 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 312 | $ 303 |
Common Stock, Par or Stated Value Per Share | $ 2 | $ 2 |
Common Stock, Shares Authorized | 500 | 500 |
Common Stock, Shares, Issued | 198.3 | 198.3 |
Treasury Stock, Shares | 39.1 | 38 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenues | ||||
Earned premiums | $ 1,773 | $ 1,593 | $ 3,463 | $ 3,137 |
Investment income, net of expenses | 195 | 175 | 380 | 349 |
Investment gains and losses, net | (1,154) | 520 | (1,820) | 1,024 |
Fee revenues | 3 | 4 | 7 | 7 |
Other revenues | 3 | 3 | 5 | 5 |
Total revenues | 820 | 2,295 | 2,035 | 4,522 |
Benefits and Expenses | ||||
Insurance losses and contract holders' benefits | 1,309 | 915 | 2,348 | 1,918 |
Underwriting, acquisition and insurance expenses | 534 | 490 | 1,053 | 929 |
Interest expense | 13 | 13 | 26 | 26 |
Other operating expenses | 5 | 5 | 9 | 9 |
Total benefits and expenses | 1,861 | 1,423 | 3,436 | 2,882 |
Income (Loss) Before Income Taxes | (1,041) | 872 | (1,401) | 1,640 |
Provision (Benefit) for Income Taxes | ||||
Current | 30 | 75 | 71 | 111 |
Deferred | (263) | 94 | (391) | 206 |
Total provision (benefit) for income taxes | (233) | 169 | (320) | 317 |
Net Income (Loss) | $ (808) | $ 703 | $ (1,081) | $ 1,323 |
Per Common Share | ||||
Net income (loss)—basic | $ (5.06) | $ 4.36 | $ (6.76) | $ 8.21 |
Net income (loss)—diluted | $ (5.06) | $ 4.31 | $ (6.76) | $ 8.13 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Net Income (Loss) | $ (808) | $ 703 | $ (1,081) | $ 1,323 |
Change in unrealized gains and losses on investments, net of tax (benefit) of $(127), $27, $(284) and $(14), respectively | (483) | 105 | (1,072) | (50) |
Amortization of pension actuarial loss and prior service cost, net of tax of $0, $0, $0 and $1, respectively | 0 | 1 | 0 | 4 |
Change in life deferred acquisition costs, life policy reserves and other, net of tax of $0, $0, $0 and $2, respectively | 1 | 0 | 1 | 8 |
Other comprehensive income (loss) | (482) | 106 | (1,071) | (38) |
Comprehensive Income (Loss) | $ (1,290) | $ 809 | $ (2,152) | $ 1,285 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, Tax | $ (127) | $ 27 | $ (284) | $ (14) |
Other Comprehensive Income Loss, Pension And Other Postretirement Benefit Plans, Net Actuarial Loss And Prior Service Cost Arising During Period, Tax | 0 | 0 | 0 | 1 |
Other Comprehensive Income, Change in Life Deferred Acquisition Costs, Life Policy Reserves and Other, Tax | $ 0 | $ 0 | $ 0 | $ 2 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common equities | Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Treasury Stock |
Beginning Balance at Dec. 31, 2020 | $ 397 | $ 1,328 | $ 10,085 | $ 769 | $ (1,790) | |
Share-based awards | 0 | (14) | 15 | |||
Share-based compensation | 17 | |||||
Other | 3 | 1 | ||||
Net Income (Loss) | $ 1,323 | 1,323 | ||||
Dividends declared | (203) | |||||
Other comprehensive income (loss) | (38) | (38) | ||||
Shares acquired - share repurchase authorization | (28) | |||||
Shares acquired - share-based compensation plans | (7) | |||||
Ending Balance at Jun. 30, 2021 | 11,858 | $ 397 | 1,334 | 11,205 | 731 | (1,809) |
Beginning Balance (in shares) at Dec. 31, 2020 | 160.9 | |||||
Share-based awards (in shares) | 0.5 | |||||
Shares acquired - share repurchase authorization (in shares) | (0.3) | |||||
Ending Balance (in shares) at Jun. 30, 2021 | 161.1 | |||||
Dividends declared per common share | $ 1.26 | |||||
Beginning Balance at Mar. 31, 2021 | $ 397 | 1,322 | 10,603 | 625 | (1,809) | |
Share-based awards | 0 | 2 | 3 | |||
Share-based compensation | 8 | |||||
Other | 2 | 1 | ||||
Net Income (Loss) | 703 | 703 | ||||
Dividends declared | (101) | |||||
Other comprehensive income (loss) | 106 | 106 | ||||
Shares acquired - share repurchase authorization | 0 | |||||
Shares acquired - share-based compensation plans | (4) | |||||
Ending Balance at Jun. 30, 2021 | 11,858 | $ 397 | 1,334 | 11,205 | 731 | (1,809) |
Beginning Balance (in shares) at Mar. 31, 2021 | 161 | |||||
Share-based awards (in shares) | 0.1 | |||||
Shares acquired - share repurchase authorization (in shares) | 0 | |||||
Ending Balance (in shares) at Jun. 30, 2021 | 161.1 | |||||
Dividends declared per common share | $ 0.63 | |||||
Beginning Balance at Dec. 31, 2021 | 13,105 | $ 397 | 1,356 | 12,625 | 648 | (1,921) |
Share-based awards | 0 | (12) | 12 | |||
Share-based compensation | 20 | |||||
Other | 3 | 1 | ||||
Net Income (Loss) | (1,081) | (1,081) | ||||
Dividends declared | (220) | |||||
Other comprehensive income (loss) | (1,071) | (1,071) | ||||
Shares acquired - share repurchase authorization | (196) | |||||
Shares acquired - share-based compensation plans | (8) | |||||
Ending Balance at Jun. 30, 2022 | 10,553 | $ 397 | 1,367 | 11,324 | (423) | (2,112) |
Beginning Balance (in shares) at Dec. 31, 2021 | 160.3 | |||||
Share-based awards (in shares) | 0.5 | |||||
Shares acquired - share repurchase authorization (in shares) | (1.6) | |||||
Ending Balance (in shares) at Jun. 30, 2022 | 159.2 | |||||
Dividends declared per common share | $ 1.38 | |||||
Beginning Balance at Mar. 31, 2022 | $ 397 | 1,354 | 12,241 | 59 | (1,959) | |
Share-based awards | 0 | 2 | 3 | |||
Share-based compensation | 9 | |||||
Other | 2 | 1 | ||||
Net Income (Loss) | (808) | (808) | ||||
Dividends declared | (109) | |||||
Other comprehensive income (loss) | (482) | (482) | ||||
Shares acquired - share repurchase authorization | (151) | |||||
Shares acquired - share-based compensation plans | (6) | |||||
Ending Balance at Jun. 30, 2022 | $ 10,553 | $ 397 | $ 1,367 | $ 11,324 | $ (423) | $ (2,112) |
Beginning Balance (in shares) at Mar. 31, 2022 | 160.3 | |||||
Share-based awards (in shares) | 0.1 | |||||
Shares acquired - share repurchase authorization (in shares) | (1.2) | |||||
Ending Balance (in shares) at Jun. 30, 2022 | 159.2 | |||||
Dividends declared per common share | $ 0.69 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash Flows From Operating Activities | ||
Net Income (Loss) | $ (1,081) | $ 1,323 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 55 | 46 |
Investment gains and losses, net | 1,829 | (1,011) |
Share-based compensation | 20 | 17 |
Interest credited to contract holders | 23 | 23 |
Deferred income tax expense | (391) | 206 |
Changes in: | ||
Investment income receivable | 3 | (2) |
Premiums and reinsurance receivable | (427) | (365) |
Deferred policy acquisition costs | (130) | (94) |
Other assets | (29) | (23) |
Loss and loss expense reserves | 364 | 273 |
Life policy and investment contract reserves | 35 | 55 |
Unearned premiums | 596 | 457 |
Other liabilities | (31) | 23 |
Current income tax receivable/payable | (81) | (11) |
Net cash provided by operating activities | 755 | 917 |
Cash Flows From Investing Activities | ||
Sale of fixed maturities | 190 | 73 |
Call or maturity of fixed maturities | 512 | 690 |
Sale of equity securities | 178 | 110 |
Purchase of fixed maturities | (942) | (1,228) |
Purchase of equity securities | (218) | (152) |
Investment in finance receivables | (10) | (22) |
Collection of finance receivables | 21 | 18 |
Investment in building and equipment | (8) | (9) |
Change in other invested assets, net | (47) | (6) |
Net cash used in investing activities | (324) | (526) |
Cash Flows From Financing Activities | ||
Payment of cash dividends to shareholders | (208) | (195) |
Shares acquired - share repurchase authorization | (196) | (28) |
Changes in note payable | (10) | 5 |
Proceeds from stock options exercised | 6 | 8 |
Contract holders' funds deposited | 34 | 47 |
Contract holders' funds withdrawn | (62) | (75) |
Other | (36) | (50) |
Net cash used in financing activities | (472) | (288) |
Net change in cash and cash equivalents | (41) | 103 |
Cash and cash equivalents at beginning of year | 1,139 | 900 |
Cash and cash equivalents at end of year | 1,098 | 1,003 |
Supplemental Disclosures of Cash Flow Information: | ||
Interest Paid | 26 | 26 |
Income taxes paid | 142 | 113 |
Noncash Activities | ||
Equipment acquired under finance lease obligations | 6 | 8 |
Share-based compensation | 24 | 21 |
Other assets and other liabilities | $ 180 | $ 83 |
Accounting Policies
Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies The condensed consolidated financial statements include the accounts of Cincinnati Financial Corporation and its consolidated subsidiaries, each of which is wholly owned. These statements are presented in conformity with accounting principles generally accepted in the United States of America (GAAP). All intercompany balances and transactions have been eliminated in consolidation. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Our actual results could differ from those estimates. Certain financial information that is normally included in annual financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, has been condensed or omitted. Our June 30, 2022, condensed consolidated financial statements are unaudited. We believe that we have made all adjustments, consisting only of normal recurring accruals, that are necessary for fair presentation. These condensed consolidated financial statements should be read in conjunction with our consolidated financial statements included in our 2021 Annual Report on Form 10-K. The results of operations for interim periods do not necessarily indicate results to be expected for the full year. The company continues to monitor the impact of the coronavirus (SARS-CoV-2 or COVID-19) pandemic outbreak. The company cannot predict the impact the pandemic will have on its future consolidated financial position, results of operations and cash flows, however the impact could be material. Pending Accounting Updates ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts In August 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts . ASU 2018-12 requires changes to the measurement and disclosure of long-duration insurance contracts. In November 2020, the FASB issued an ASU that delayed the effective date of ASU 2018-12 to interim and annual reporting periods beginning after December 15, 2022. We plan to adopt these ASUs on a modified retrospective basis on January 1, 2023. Related to the company's term and whole life products included in life policy and investment contract reserves, the new guidance requires that cash flow assumptions be reviewed at least annually to determine any necessary updates. Additionally, the discount rate assumption is required to be updated quarterly based on upper-medium grade fixed-income instrument yields (market value discount rates). The life policy and investment contract reserves balance is adjusted through insurance losses and contract holders' benefits for cash flow assumption updates and through accumulated other comprehensive income (AOCI) for discount rate updates. These ASUs also amend the previous guidance related to life deferred policy acquisition costs by requiring amortization of those costs on a constant level basis for a group of contracts that approximates straight-line and the removal of shadow deferred policy acquisition costs for universal life and deferred annuity products. These ASUs also require entities to provide additional disclosures including disaggregated rollforwards of the life policy and investment contract reserves, separate account liabilities and life deferred policy acquisition costs. Based on market value discount rates and other assumptions that existed at March 31, 2022, management estimated that adoption would have a material impact. However, based on current conditions, primarily an increase in market value discount rates, management estimates at June 30, 2022, that adoption would not have a material impact and would have resulted in an after-tax reduction to shareholders' equity of approximately $50 million |
Investments
Investments | 6 Months Ended |
Jun. 30, 2022 | |
Investments [Abstract] | |
Investment | Investments The following table provides amortized cost, gross unrealized gains, gross unrealized losses and fair value for our fixed-maturity securities: (Dollars in millions) Amortized Gross unrealized Fair value At June 30, 2022 gains losses Fixed maturity securities: Corporate $ 7,167 $ 60 $ 424 $ 6,803 States, municipalities and political subdivisions 4,845 38 229 4,654 Commercial mortgage-backed 256 — 7 249 United States government 146 — 2 144 Government-sponsored enterprises 60 — — 60 Foreign government 23 — — 23 Total $ 12,497 $ 98 $ 662 $ 11,933 At December 31, 2021 Fixed maturity securities: Corporate $ 7,043 $ 467 $ 13 $ 7,497 States, municipalities and political subdivisions 4,768 330 3 5,095 Commercial mortgage-backed 264 9 — 273 United States government 121 2 — 123 Government-sponsored enterprises 8 — — 8 Foreign government 26 — — 26 Total $ 12,230 $ 808 $ 16 $ 13,022 Th e net unrealized investment losses in our fixed-maturity portfolio at June 30, 2022, are primarily due to an increase in U.S. Treasury yields and a widening of corporate credit spreads. Our commercial mortgage-backed securities had an average rating of Aa2/AA- and Aa2/AA at June 30, 2022, and December 31, 2021, respectively. The table below provides fair values and gross unrealized losses by investment category and by the duration of the securities' continuous unrealized loss positions: (Dollars in millions) Less than 12 months 12 months or more Total At June 30, 2022 Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturity securities: Corporate $ 4,768 $ 398 $ 107 $ 26 $ 4,875 $ 424 States, municipalities and political subdivisions 2,341 223 20 6 2,361 229 Commercial mortgage-backed 237 7 10 — 247 7 United States government 85 2 11 — 96 2 Government-sponsored enterprises 36 — 3 — 39 — Foreign government 16 — — — 16 — Total $ 7,483 $ 630 $ 151 $ 32 $ 7,634 $ 662 At December 31, 2021 Fixed maturity securities: Corporate $ 861 $ 13 $ 15 $ — $ 876 $ 13 States, municipalities and political subdivisions 105 2 2 1 107 3 Commercial mortgage-backed 10 — 11 — 21 — United States government 48 — — — 48 — Government-sponsored enterprises 7 — — — 7 — Foreign government 16 — — — 16 — Total $ 1,047 $ 15 $ 28 $ 1 $ 1,075 $ 16 Contractual maturity dates for fixed-maturities securities were: (Dollars in millions) Amortized Fair % of fair At June 30, 2022 Maturity dates: Due in one year or less $ 645 $ 645 5.4 % Due after one year through five years 3,721 3,670 30.8 Due after five years through ten years 3,519 3,416 28.6 Due after ten years 4,612 4,202 35.2 Total $ 12,497 $ 11,933 100.0 % Actual maturities may differ from contractual maturities when there is a right to call or prepay obligations with or without call or prepayment penalties. The following table provides investment income and investment gains and losses, net: (Dollars in millions) Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Investment income: Interest $ 124 $ 117 $ 247 $ 235 Dividends 72 60 137 118 Other 2 1 3 3 Total 198 178 387 356 Less investment expenses 3 3 7 7 Total $ 195 $ 175 $ 380 $ 349 Investment gains and losses, net: Equity securities: Investment gains and losses on securities sold, net $ 5 $ — $ 37 $ 6 Unrealized gains and losses on securities still held, net (1,175) 489 (1,882) 974 Subtotal (1,170) 489 (1,845) 980 Fixed maturities: Gross realized gains 2 11 6 14 Gross realized losses (2) (2) (3) (2) Subtotal — 9 3 12 Other 16 22 22 32 Total $ (1,154) $ 520 $ (1,820) $ 1,024 The fair value of our equity portfolio was $9.510 billion and $11.315 billion at June 30, 2022, and December 31, 2021, respectively. At June 30, 2022, and December 31, 2021, Apple Inc. (Nasdaq:AAPL) , an equity holding, was our largest single investment holding with a fair value of $664 million and $862 million, which was 7.3% and 7.9% of our publicly traded common equities portfolio and 3.1% and 3.5% of the total investment portfolio, respectively. At June 30, 2022, and December 31, 2021, the allowance for credit losses, including changes in the amount during each period, was less than $1 million. During the three and six months ended June 30, 2022, there were one and two fixed-maturity securities, respectively, that were written down to fair value due to an intention to be sold resulting in impairment charges of less than $1 million for each period. During the three and six months ended June 30, 2021, there were no fixed-maturity securities that were written down to fair value due to an intention to be sold. At June 30, 2022, 2,735 fixed-maturity securities with a total unrealized loss of $662 million were in an unrealized loss position. Of that total, seven fixed-maturity securities |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements In accordance with accounting guidance for fair value measurements and disclosures, we categorized our financial instruments, based on the priority of the observable and market-based data for the valuation technique used, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices with readily available independent data in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable market inputs (Level 3). When various inputs for measurement fall within different levels of the fair value hierarchy, the lowest observable input that has a significant impact on fair value measurement is used. Our valuation techniques have not changed from those used at December 31, 2021, and ultimately management determines fair value. See our 2021 Annual Report on Form 10-K, Item 8, Note 3, Fair Value Measurements, Page 137, for information on characteristics and valuation techniques used in determining fair value. Fair Value Disclosures for Assets The following tables illustrate the fair value hierarchy for those assets measured at fair value on a recurring basis at June 30, 2022, and December 31, 2021. We do not have any liabilities carried at fair value. (Dollars in millions) Quoted prices in Significant other Significant Total At June 30, 2022 Fixed maturities, available for sale: Corporate $ — $ 6,803 $ — $ 6,803 States, municipalities and political subdivisions — 4,654 — 4,654 Commercial mortgage-backed — 249 — 249 United States government 144 — — 144 Government-sponsored enterprises — 60 — 60 Foreign government — 23 — 23 Subtotal 144 11,789 — 11,933 Common equities 9,092 — — 9,092 Nonredeemable preferred equities — 418 — 418 Separate accounts taxable fixed maturities — 844 — 844 Top Hat savings plan mutual funds and common 60 — — 60 Total $ 9,296 $ 13,051 $ — $ 22,347 At December 31, 2021 Fixed maturities, available for sale: Corporate $ — $ 7,497 $ — $ 7,497 States, municipalities and political subdivisions — 5,095 — 5,095 Commercial mortgage-backed — 273 — 273 United States government 123 — — 123 Government-sponsored enterprises — 8 — 8 Foreign government — 26 — 26 Subtotal 123 12,899 — 13,022 Common equities 10,862 — — 10,862 Nonredeemable preferred equities — 453 — 453 Separate accounts taxable fixed maturities — 948 — 948 Top Hat savings plan mutual funds and common 64 — — 64 Total $ 11,049 $ 14,300 $ — $ 25,349 We also held Level 1 cash and cash equivalents of $1.098 billion and $1.139 billion at June 30, 2022, and December 31, 2021, respectively. Fair Value Disclosures for Assets and Liabilities Not Carried at Fair Value The disclosures below are presented to provide information about the effects of current market conditions on financial instruments that are not reported at fair value in our condensed consolidated financial statements. This table summarizes the book value and principal amounts of our long-term debt: (Dollars in millions) Book value Principal amount Interest Year of June 30, December 31, June 30, December 31, 2022 2021 2022 2021 6.900% 1998 Senior debentures, due 2028 $ 27 $ 27 $ 28 $ 28 6.920% 2005 Senior debentures, due 2028 391 391 391 391 6.125% 2004 Senior notes, due 2034 371 371 374 374 Total $ 789 $ 789 $ 793 $ 793 The following table shows fair values of our note payable and long-term debt: (Dollars in millions) Quoted prices in Significant other observable inputs (Level 2) Significant Total At June 30, 2022 Note payable $ — $ 44 $ — $ 44 6.900% senior debentures, due 2028 — 31 — 31 6.920% senior debentures, due 2028 — 443 — 443 6.125% senior notes, due 2034 — 426 — 426 Total $ — $ 944 $ — $ 944 At December 31, 2021 Note payable $ — $ 54 $ — $ 54 6.900% senior debentures, due 2028 — 34 — 34 6.920% senior debentures, due 2028 — 501 — 501 6.125% senior notes, due 2034 — 510 — 510 Total $ — $ 1,099 $ — $ 1,099 The following table shows the fair value of our life policy loans included in other invested assets and the fair values of our deferred annuities and structured settlements included in life policy and investment contract reserves: (Dollars in millions) Quoted prices in Significant other Significant Total At June 30, 2022 Life policy loans $ — $ — $ 39 $ 39 Deferred annuities — — 649 649 Structured settlements — 155 — 155 Total $ — $ 155 $ 649 $ 804 At December 31, 2021 Life policy loans $ — $ — $ 44 $ 44 Deferred annuities — — 778 778 Structured settlements — 201 — 201 Total $ — $ 201 $ 778 $ 979 Outstanding principal and interest for these life policy loans totaled $31 million at June 30, 2022, and Recorded reserves for the deferred annuities were $755 million and $762 million at June 30, 2022, and December 31, 2021, respectively. Recorded reserves for the structured settlements were $133 million and $136 million at June 30, 2022, and December 31, 2021, respectively. |
Property Casualty Loss and Loss
Property Casualty Loss and Loss Expenses | 6 Months Ended |
Jun. 30, 2022 | |
Premiums Written, Net [Abstract] | |
Property Casualty Loss And Loss Expenses | Property Casualty Loss and Loss Expenses This table summarizes activity for our consolidated property casualty loss and loss expense reserves: (Dollars in millions) Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Gross loss and loss expense reserves, beginning of period $ 7,287 $ 6,880 $ 7,229 $ 6,677 Less reinsurance recoverable 319 262 327 277 Net loss and loss expense reserves, beginning of period 6,968 6,618 6,902 6,400 Net incurred loss and loss expenses related to: Current accident year 1,299 949 2,296 1,982 Prior accident years (59) (119) (100) (229) Total incurred 1,240 830 2,196 1,753 Net paid loss and loss expenses related to: Current accident year 368 334 537 477 Prior accident years 524 433 1,245 995 Total paid 892 767 1,782 1,472 Net loss and loss expense reserves, end of period 7,316 6,681 7,316 6,681 Plus reinsurance recoverable 287 274 287 274 Gross loss and loss expense reserves, end of period $ 7,603 $ 6,955 $ 7,603 $ 6,955 We use actuarial methods, models and judgment to estimate, as of a financial statement date, the property casualty loss and loss expense reserves required to pay for and settle all outstanding insured claims, including incurred but not reported (IBNR) claims, as of that date. The actuarial estimate is subject to review and adjustment by an inter-departmental committee that includes actuarial, claims, underwriting, loss prevention and accounting management. This committee is familiar with relevant company and industry business, claims and underwriting trends, as well as general economic and legal trends that could affect future loss and loss expense payments. The amount we will actually have to pay for claims can be highly uncertain. This uncertainty, together with the size of our reserves, makes the loss and loss expense reserves our most significant estimate. The reserve for loss and loss expenses in the condensed consolidated balance sheets also included $66 million at June 30, 2022, and $64 million at June 30, 2021, for certain life and health loss and loss expense reserves. For the three months ended June 30, 2022, we experienced $59 million of favorable development on prior accident years, including $29 million of favorable development in commercial lines, $14 million of favorable development in personal lines and $1 million of favorable development in excess and surplus lines. Within commercial lines, we recognized favorable reserve development of $18 million for the workers' compensation line and $7 million for the commercial property line due to reduced uncertainty of prior accident year loss and loss adjustment expense for these lines. Within personal lines, we recognized favorable reserve development of $16 million for the homeowner line. For the six months ended June 30, 2022, we experienced $100 million of favorable development on prior accident years, including $47 million of favorable development in commercial lines, $48 million of favorable development in personal lines and $6 million of favorable development in excess and surplus lines. Within commercial lines, we recognized favorable reserve development of $27 million for the workers' compensation line and $12 million for the commercial property line due to reduced uncertainty of prior accident year loss and loss adjustment expense for these lines. Within personal lines, we recognized favorable reserve development of $46 million for the homeowner line. For the three months ended June 30, 2021, we experienced $119 million of favorable development on prior accident years, including $86 million of favorable development in commercial lines, $12 million of favorable development in personal lines and $1 million of favorable development in excess and surplus lines. Within commercial lines, we recognized favorable reserve development of $27 million for the workers' compensation line and $26 million for the commercial casualty line due to reduced uncertainty of prior accident year loss and loss adjustment expense for these lines. Within personal lines, we recognized favorable reserve development of $9 million in personal auto. For the six months ended June 30, 2021, we experienced $229 million of favorable development on prior accident years, including $169 million of favorable development in commercial lines, $32 million of favorable development in personal lines and $3 million of unfavorable development in excess and surplus lines. Within commercial lines, we recognized favorable reserve development of $52 million for the workers' compensation line, $37 million for the commercial auto line, $34 million for the commercial property line and $32 million for the commercial casualty line due to reduced uncertainty of prior accident year loss and loss adjustment expense for these lines. Within personal |
Life Policy and Investment Cont
Life Policy and Investment Contract Reserves | 6 Months Ended |
Jun. 30, 2022 | |
Liability for Future Policy Benefit, before Reinsurance [Abstract] | |
Life Policy And Investment Contract Reserves | Life Policy and Investment Contract Reserves We establish the reserves for traditional life insurance policies based on expected expenses, mortality, morbidity, withdrawal rates, timing of claim presentation and investment yields, including a provision for uncertainty. Once these assumptions are established, they generally are maintained throughout the lives of the contracts. We use both our own experience and industry experience, adjusted for historical trends, in arriving at our assumptions for expected mortality, morbidity and withdrawal rates as well as for expected expenses. We base our assumptions for expected investment income on our own experience adjusted for current and future economic conditions. We establish reserves for the company's deferred annuity, universal life and structured settlement policies equal to the cumulative account balances, which include premium deposits plus credited interest less charges and withdrawals. Some of our universal life policies contain no-lapse guarantee provisions. For these policies, we establish a reserve in addition to the account balance, based on expected no-lapse guarantee benefits and expected policy assessments. This table summarizes our life policy and investment contract reserves: (Dollars in millions) June 30, December 31, Life policy reserves: Ordinary/traditional life $ 1,414 $ 1,376 Other 52 52 Subtotal 1,466 1,428 Investment contract reserves: Deferred annuities 755 762 Universal life 679 679 Structured settlements 133 136 Other 8 9 Subtotal 1,575 1,586 Total life policy and investment contract reserves $ 3,041 $ 3,014 |
Deferred Acquisition Costs
Deferred Acquisition Costs | 6 Months Ended |
Jun. 30, 2022 | |
Deferred Costs [Abstract] | |
Deferred Acquisition Costs | Deferred Policy Acquisition Costs Expenses directly related to successfully acquired insurance policies – primarily commissions, premium taxes and underwriting costs – are deferred and amortized over the terms of the policies. We update our acquisition cost assumptions periodically to reflect actual experience, and we evaluate the costs for recoverability. The table below shows the deferred policy acquisition costs and asset reconciliation. (Dollars in millions) Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Property casualty: Deferred policy acquisition costs asset, beginning of period $ 665 $ 586 $ 602 $ 542 Capitalized deferred policy acquisition costs 375 325 739 637 Amortized deferred policy acquisition costs (317) (281) (618) (549) Deferred policy acquisition costs asset, end of period $ 723 $ 630 $ 723 $ 630 Life: Deferred policy acquisition costs asset, beginning of period $ 314 $ 294 $ 303 $ 263 Capitalized deferred policy acquisition costs 15 15 30 29 Amortized deferred policy acquisition costs (11) (14) (21) (23) Shadow deferred policy acquisition costs 4 (1) 10 25 Deferred policy acquisition costs asset, end of period $ 322 $ 294 $ 322 $ 294 Consolidated: Deferred policy acquisition costs asset, beginning of period $ 979 $ 880 $ 905 $ 805 Capitalized deferred policy acquisition costs 390 340 769 666 Amortized deferred policy acquisition costs (328) (295) (639) (572) Shadow deferred policy acquisition costs 4 (1) 10 25 Deferred policy acquisition costs asset, end of period $ 1,045 $ 924 $ 1,045 $ 924 No premium deficiencies were recorded in the condensed consolidated statements of income, as the sum of the anticipated loss and loss expenses, policyholder dividends and unamortized deferred acquisition expenses did not exceed the related unearned premiums and anticipated investment income. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2022 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income Accumulated other comprehensive income (AOCI) includes changes in unrealized gains and losses on investments, changes in pension obligations and changes in life deferred acquisition costs, life policy reserves and other as follows: (Dollars in millions) Three months ended June 30, 2022 2021 Before tax Income tax Net Before tax Income tax Net Investments: AOCI, beginning of period $ 46 $ 8 $ 38 $ 830 $ 174 $ 656 OCI before investment gains and losses, net, recognized in net income (610) (127) (483) 141 28 113 Investment gains and losses, net, recognized in net income — — — (9) (1) (8) OCI (610) (127) (483) 132 27 105 AOCI, end of period $ (564) $ (119) $ (445) $ 962 $ 201 $ 761 Pension obligations: AOCI, beginning of period $ 27 $ 7 $ 20 $ (37) $ (6) $ (31) OCI excluding amortization recognized in net income — — — — — — Amortization recognized in net income — — — 1 — 1 OCI — — — 1 — 1 AOCI, end of period $ 27 $ 7 $ 20 $ (36) $ (6) $ (30) Life deferred acquisition costs, life policy reserves and other: AOCI, beginning of period $ 1 $ — $ 1 $ — $ — $ — OCI before investment gains and losses, net, recognized in net income 1 — 1 — — — Investment gains and losses, net, recognized in net income — — — — — — OCI 1 — 1 — — — AOCI, end of period $ 2 $ — $ 2 $ — $ — $ — Summary of AOCI: AOCI, beginning of period $ 74 $ 15 $ 59 $ 793 $ 168 $ 625 Investments OCI (610) (127) (483) 132 27 105 Pension obligations OCI — — — 1 — 1 Life deferred acquisition costs, life policy reserves and other OCI 1 — 1 — — — Total OCI (609) (127) (482) 133 27 106 AOCI, end of period $ (535) $ (112) $ (423) $ 926 $ 195 $ 731 (Dollars in millions) Six months ended June 30, 2022 2021 Before tax Income tax Net Before tax Income tax Net Investments: AOCI, beginning of period $ 792 $ 165 $ 627 $ 1,026 $ 215 $ 811 OCI before investment gains and losses, net, recognized in net income (1,353) (284) (1,069) (52) (11) (41) Investment gains and losses, net, recognized in net income (3) — (3) (12) (3) (9) OCI (1,356) (284) (1,072) (64) (14) (50) AOCI, end of period $ (564) $ (119) $ (445) $ 962 $ 201 $ 761 Pension obligations: AOCI, beginning of period $ 27 $ 7 $ 20 $ (41) $ (7) $ (34) OCI excluding amortization recognized in net income — — — 2 — 2 Amortization recognized in net income — — — 3 1 2 OCI — — — 5 1 4 AOCI, end of period $ 27 $ 7 $ 20 $ (36) $ (6) $ (30) Life deferred acquisition costs, life policy reserves and other: AOCI, beginning of period $ 1 $ — $ 1 $ (10) $ (2) $ (8) OCI before investment gains and losses, net, recognized in net income 1 — 1 10 2 8 Investment gains and losses, net, recognized in net income — — — — — — OCI 1 — 1 10 2 8 AOCI, end of period $ 2 $ — $ 2 $ — $ — $ — Summary of AOCI: AOCI, beginning of period $ 820 $ 172 $ 648 $ 975 $ 206 $ 769 Investments OCI (1,356) (284) (1,072) (64) (14) (50) Pension obligations OCI — — — 5 1 4 Life deferred acquisition costs, life policy reserves and other OCI 1 — 1 10 2 8 Total OCI (1,355) (284) (1,071) (49) (11) (38) AOCI, end of period $ (535) $ (112) $ (423) $ 926 $ 195 $ 731 Investment gains and losses, net, and life deferred acquisition costs, life policy reserves and other investment gains and losses, net, |
Reinsurance
Reinsurance | 6 Months Ended |
Jun. 30, 2022 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | Reinsurance Primary components of our property casualty reinsurance assumed operations include involuntary and voluntary assumed as well as contracts from our reinsurance assumed operations, known as Cincinnati Re. Primary components of our ceded reinsurance include a property per risk treaty, property excess treaty, casualty per occurrence treaty, casualty excess treaty, property catastrophe treaty and catastrophe bonds and retrocessions on our reinsurance assumed operations. Management’s decisions about the appropriate level of risk retention are affected by various factors, including changes in our underwriting practices, capacity to retain risks and reinsurance market conditions. The table below summarizes our consolidated property casualty insurance net written premiums, earned premiums and incurred loss and loss expenses: (Dollars in millions) Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Direct written premiums $ 1,871 $ 1,649 $ 3,574 $ 3,194 Assumed written premiums 193 161 456 366 Ceded written premiums (100) (96) (167) (153) Net written premiums $ 1,964 $ 1,714 $ 3,863 $ 3,407 Direct earned premiums $ 1,631 $ 1,465 $ 3,192 $ 2,894 Assumed earned premiums 134 109 255 210 Ceded earned premiums (68) (60) (132) (115) Earned premiums $ 1,697 $ 1,514 $ 3,315 $ 2,989 Direct incurred loss and loss expenses $ 1,174 $ 781 $ 2,069 $ 1,649 Assumed incurred loss and loss expenses 67 54 140 132 Ceded incurred loss and loss expenses (1) (5) (13) (28) Incurred loss and loss expenses $ 1,240 $ 830 $ 2,196 $ 1,753 Our life insurance company purchases reinsurance for protection of a portion of the risks that are written. Primary components of our life reinsurance program include individual mortality coverage, aggregate catastrophe and accidental death coverage in excess of certain deductibles. The table below summarizes our consolidated life insurance earned premiums and contract holders' benefits incurred: (Dollars in millions) Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Direct earned premiums $ 96 $ 98 $ 186 $ 185 Ceded earned premiums (20) (19) (38) (37) Earned premiums $ 76 $ 79 $ 148 $ 148 Direct contract holders' benefits incurred 91 100 205 207 Ceded contract holders' benefits incurred (22) (15) (53) (42) Contract holders' benefits incurred $ 69 $ 85 $ 152 $ 165 The ceded benefits incurred can vary depending on the type of life insurance policy held and the year the policy was issued. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The differences between the 21% statutory federal income tax rate and our effective income tax rate were as follows: (Dollars in millions) Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Tax at statutory rate: $ (218) 21.0 % $ 183 21.0 % $ (294) 21.0 % $ 344 21.0 % Increase (decrease) resulting from: Tax-exempt income from municipal bonds (5) 0.5 (5) (0.6) (10) 0.7 (10) (0.6) Dividend received exclusion (5) 0.5 (4) (0.5) (10) 0.7 (9) (0.5) Other (5) 0.4 (5) (0.5) (6) 0.4 (8) (0.6) Provision (benefit) for income taxes $ (233) 22.4 % $ 169 19.4 % $ (320) 22.8 % $ 317 19.3 % The provision (benefit) for federal income taxes is based upon filing a consolidated income tax return for the company and its domestic subsidiaries. We continue to believe that after considering all positive and negative evidence of taxable income in the carryback and carryforward periods as permitted by law, it is more likely than not that all of the deferred tax assets on our U.S. domestic operations will be realized. As a result, we have no valuation allowance for our U.S. domestic operations at June 30, 2022, and December 31, 2021. As more fully discussed below, we do carry a valuation allowance on the deferred tax assets related to Cincinnati Global Underwriting Ltd. SM (Cincinnati Global). Unrecognized Tax Benefits At June 30, 2022, and December 31, 2021, we had a gross unrecognized tax benefit of $34 million. There were no changes to this amount during the first half of 2022. It is reasonably possible that within the next 12 months, our unrecognized tax benefit could change when the IRS completes its examination of the tax year ended December 31, 2018. Cincinnati Global As a result of operations for the three and six months ended June 30, 2022, Cincinnati Global decreased its net deferred tax assets by $8 million and $11 million with an offsetting decrease of $8 million and $11 million to the valuation allowance. At June 30, 2022, Cincinnati Global had a net deferred tax asset of $42 million and an offsetting valuation allowance of $42 million. Deferred tax assets are reduced by a valuation allowance when management believes it is more likely than not that some, or all, of the deferred tax assets will not be realized. After considering all positive and negative evidence, we continue to believe it is appropriate to carry a valuation allowance at June 30, 2022. |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | Net Income (Loss) Per Common Share Basic earnings per share are computed based on the weighted average number of common shares outstanding. Diluted earnings per share are computed based on the weighted average number of common and dilutive potential common shares outstanding using the treasury stock method. The table shows calculations for basic and diluted earnings per share: (In millions, except per share data) Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Numerator: Net income (loss)—basic and diluted $ (808) $ 703 $ (1,081) $ 1,323 Denominator: Basic weighted-average common shares outstanding 159.6 161.1 160.0 161.1 Effect of share-based awards: Stock options — 1.2 — 1.0 Nonvested shares — 0.6 — 0.6 Diluted weighted-average shares 159.6 162.9 160.0 162.7 Earnings (loss) per share: Basic $ (5.06) $ 4.36 $ (6.76) $ 8.21 Diluted $ (5.06) $ 4.31 $ (6.76) $ 8.13 Number of anti-dilutive share-based awards 2.0 0.4 2.2 1.0 In accordance with Accounting Standards Codification 260, Earnings per Share |
Employee Retirement Benefits
Employee Retirement Benefits | 6 Months Ended |
Jun. 30, 2022 | |
Retirement Benefits [Abstract] | |
Employee Retirement Benefits | Employee Retirement Benefits The following summarizes the components of net periodic (benefit) cost for our qualified and supplemental pension plans: (Dollars in millions) Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Service cost $ 3 $ 3 $ 5 $ 5 Non-service (benefit) costs: Interest cost 2 3 5 5 Expected return on plan assets (5) (6) (11) (11) Amortization of actuarial loss and prior service cost — 1 — 3 Other — — — 2 Total non-service benefit (3) (2) (6) (1) Net periodic (benefit) cost $ — $ 1 $ (1) $ 4 See our 2021 Annual Report on Form 10-K, Item 8, Note 13, Employee Retirement Benefits, Page 162, for information on our retirement benefits. The net periodic (benefit) cost is allocated in the same proportion primarily to the underwriting, acquisition and insurance expenses line item with the remainder allocated to the insurance losses and contract holders' benefits line item on the condensed consolidated statements of income for both 2022 and 2021. We m ade no con |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities The company, through its insurance subsidiaries, is involved in claims litigation arising in the ordinary course of conducting its business, both as a liability insurer defending or providing indemnity for third-party claims brought against insureds and as an insurer defending coverage claims brought against it. The company accounts for such activity through the establishment of unpaid loss and loss expense reserves. Subject to the uncertainties discussed in Note 4, Property Casualty Loss and Loss Expenses, and in the discussion in the balance of this Note, we believe that the ultimate liability, if any, with respect to such ordinary-course claims litigation, after consideration of provisions made for potential losses, costs of defense, and reinsurance recoveries, is immaterial to our consolidated financial position, results of operations and cash flows. Beginning in April 2020, like many companies in the property casualty insurance industry, the company’s property casualty subsidiaries, were named as defendants in lawsuits seeking insurance coverage under commercial property insurance policies issued by the company for alleged losses resulting from the shutdown or suspension of their businesses due to the COVID-19 pandemic. Although the allegations vary, the plaintiffs generally seek a declaration of insurance coverage, damages for breach of contract in unspecified amounts for claim denials, interest and attorney fees. Some of the lawsuits also allege that the insurance claims were denied in bad faith or otherwise in violation of state laws and seek extra-contractual or punitive damages. The company denies the allegations in these lawsuits and intends to continue to vigorously defend the lawsuits. The company maintains that it has no coverage obligations with respect to these lawsuits for business income allegedly lost by the plaintiffs due to the COVID-19 pandemic based on the terms of the applicable insurance policies. Although the policy terms vary, in general, the claims at issue in these lawsuits were denied because the policyholder identified no direct physical loss or damage to property at the insured premises, and the governmental orders that led to the complete or partial shutdown of the business were not due to the existence of any direct physical loss or damage to property in the immediate vicinity of the insured premises and did not prohibit access to the insured premises, as required by the terms of the insurance policies. Depending on the individual policy, additional policy terms and conditions may also prohibit coverage, such as exclusions for pollutants, ordinance or law, loss of use, and acts or decisions. The company’s standard commercial property insurance policies generally did not contain a specific virus exclusion. In addition to the inherent difficulty in predicting litigation outcomes, the COVID-19 pandemic business income coverage lawsuits present a number of uncertainties and contingencies that are not yet known, including how many policyholders will ultimately file claims, the number of lawsuits that will be filed, the extent to which any class may be certified, and the size and scope of any such classes. The legal theories advanced by plaintiffs vary by case as do the state laws that govern the policy interpretation. These lawsuits are at various stages of litigation: a few filed in 2022, including several that continue to be amended; several that have been dismissed voluntarily and may be refiled; and others that have been dismissed by trial courts and appealed. While appellate decisions issued to date generally have been favorable for the insurance industry and the company, many remain to be decided. In some jurisdictions, many cases have been stayed pending appellate decisions in their state or federal circuit. Accordingly, little discovery has occurred on pending cases. In addition, business income calculations depend upon a wide range of factors that are particular to the circumstances of each individual policyholder and, here, virtually none of the plaintiffs have submitted proofs of loss or otherwise quantified or factually supported any allegedly covered loss. Moreover, the company’s experience shows that demands for damages often bear little relation to a reasonable estimate of potential loss. Accordingly, management cannot now reasonably estimate the possible loss or range of loss, if any. Nonetheless, given the number of claims and potential claims, the indeterminate amounts sought, and the inherent unpredictability of litigation, it is possible that adverse outcomes, if any, in the aggregate could have a material adverse effect on the company’s consolidated financial position, results of operations and cash flows. The company and its subsidiaries also are occasionally involved in other legal and regulatory proceedings, some of which assert claims for substantial amounts. These actions include, among others, putative class actions seeking certification of a national class. Such proceedings have alleged, for example, breach of an alleged duty to search national databases to ascertain unreported deaths of insureds under life insurance policies. The company’s insurance subsidiaries also are occasionally parties to individual actions in which extra-contractual damages, punitive damages or penalties are sought, such as claims alleging bad faith handling of insurance claims or writing unauthorized coverage or claims alleging discrimination by former or current associates. On a quarterly basis, we review these outstanding matters. Under current accounting guidance, we establish accruals when it is probable that a loss has been incurred and we can reasonably estimate its potential exposure. The company accounts for such probable and estimable losses, if any, through the establishment of legal expense reserves. Based on our quarterly review, we believe that our accruals for probable and estimable losses are reasonable and that the amounts accrued do not have a material effect on our consolidated financial position, results of operations and cash flows. However, if any one or more of these matters results in a judgment against us or settlement for an amount that is significantly greater than the amount accrued, the resulting liability could have a material effect on the company’s consolidated financial position, results of operations and cash flows. Based on our most recent review, our estimate for any other matters for which the risk of loss is not probable, but more than remote, is immaterial. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We operate primarily in two industries, property casualty insurance and life insurance. Our chief operating decision maker regularly reviews our reporting segments to make decisions about allocating resources and assessing performance. Our reporting segments are: • Commercial lines insurance • Personal lines insurance • Excess and surplus lines insurance • Life insurance • Investments We report as Other the noninvestment operations of the parent company and its noninsurer subsidiary, CFC Investment Company. We also report as Other the underwriting results of Cincinnati Re and Cincinnati Global. See our 2021 Annual Report on Form 10-K, Item 8, Note 18, Segment Information, Page 172, for a description of revenue, income or loss before income taxes and identifiable assets for each of the five segments. Segment information is summarized in the following table: (Dollars in millions) Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Revenues: Commercial lines insurance Commercial casualty $ 350 $ 312 $ 686 $ 615 Commercial property 280 259 554 512 Commercial auto 210 198 415 391 Workers' compensation 68 68 136 135 Other commercial 86 74 165 144 Commercial lines insurance premiums 994 911 1,956 1,797 Fee revenues 1 1 2 2 Total commercial lines insurance 995 912 1,958 1,799 Personal lines insurance Personal auto 155 152 307 305 Homeowner 202 178 397 352 Other personal 56 52 111 101 Personal lines insurance premiums 413 382 815 758 Fee revenues 1 1 2 2 Total personal lines insurance 414 383 817 760 Excess and surplus lines insurance 124 95 236 184 Fee revenues — 1 1 1 Total excess and surplus lines insurance 124 96 237 185 Life insurance premiums 76 79 148 148 Fee revenues 1 1 2 2 Total life insurance 77 80 150 150 Investments Investment income, net of expenses 195 175 380 349 Investment gains and losses, net (1,154) 520 (1,820) 1,024 Total investment revenue (959) 695 (1,440) 1,373 Other Premiums 166 126 308 250 Other 3 3 5 5 Total other revenues 169 129 313 255 Total revenues $ 820 $ 2,295 $ 2,035 $ 4,522 Income (loss) before income taxes: Insurance underwriting results Commercial lines insurance $ (62) $ 145 $ 14 $ 275 Personal lines insurance (49) 29 16 26 Excess and surplus lines insurance 19 10 35 18 Life insurance 13 (2) 11 (4) Investments (987) 668 (1,495) 1,320 Other 25 22 18 5 Total income (loss) before income taxes $ (1,041) $ 872 $ (1,401) $ 1,640 Identifiable assets: June 30, December 31, Property casualty insurance $ 4,945 $ 4,421 Life insurance 1,486 1,590 Investments 21,590 24,481 Other 1,171 895 Total $ 29,192 $ 31,387 |
Accounting Policies Pending Acc
Accounting Policies Pending Accounting Updates (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Adopted Accounting Updates and Pending Accounting Updates | Pending Accounting Updates ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts In August 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts . ASU 2018-12 requires changes to the measurement and disclosure of long-duration insurance contracts. In November 2020, the FASB issued an ASU that delayed the effective date of ASU 2018-12 to interim and annual reporting periods beginning after December 15, 2022. We plan to adopt these ASUs on a modified retrospective basis on January 1, 2023. Related to the company's term and whole life products included in life policy and investment contract reserves, the new guidance requires that cash flow assumptions be reviewed at least annually to determine any necessary updates. Additionally, the discount rate assumption is required to be updated quarterly based on upper-medium grade fixed-income instrument yields (market value discount rates). The life policy and investment contract reserves balance is adjusted through insurance losses and contract holders' benefits for cash flow assumption updates and through accumulated other comprehensive income (AOCI) for discount rate updates. These ASUs also amend the previous guidance related to life deferred policy acquisition costs by requiring amortization of those costs on a constant level basis for a group of contracts that approximates straight-line and the removal of shadow deferred policy acquisition costs for universal life and deferred annuity products. These ASUs also require entities to provide additional disclosures including disaggregated rollforwards of the life policy and investment contract reserves, separate account liabilities and life deferred policy acquisition costs. Based on market value discount rates and other assumptions that existed at March 31, 2022, management estimated that adoption would have a material impact. However, based on current conditions, primarily an increase in market value discount rates, management estimates at June 30, 2022, that adoption would not have a material impact and would have resulted in an after-tax reduction to shareholders' equity of approximately $50 million |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Investments [Abstract] | |
Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses and Fair Value of Fixed-maturity Securities | The following table provides amortized cost, gross unrealized gains, gross unrealized losses and fair value for our fixed-maturity securities: (Dollars in millions) Amortized Gross unrealized Fair value At June 30, 2022 gains losses Fixed maturity securities: Corporate $ 7,167 $ 60 $ 424 $ 6,803 States, municipalities and political subdivisions 4,845 38 229 4,654 Commercial mortgage-backed 256 — 7 249 United States government 146 — 2 144 Government-sponsored enterprises 60 — — 60 Foreign government 23 — — 23 Total $ 12,497 $ 98 $ 662 $ 11,933 At December 31, 2021 Fixed maturity securities: Corporate $ 7,043 $ 467 $ 13 $ 7,497 States, municipalities and political subdivisions 4,768 330 3 5,095 Commercial mortgage-backed 264 9 — 273 United States government 121 2 — 123 Government-sponsored enterprises 8 — — 8 Foreign government 26 — — 26 Total $ 12,230 $ 808 $ 16 $ 13,022 |
Fair Value and Unrealized Losses by Investment Category and By the Duration of the Securities' Continuous Unrealized Loss Position | The table below provides fair values and gross unrealized losses by investment category and by the duration of the securities' continuous unrealized loss positions: (Dollars in millions) Less than 12 months 12 months or more Total At June 30, 2022 Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturity securities: Corporate $ 4,768 $ 398 $ 107 $ 26 $ 4,875 $ 424 States, municipalities and political subdivisions 2,341 223 20 6 2,361 229 Commercial mortgage-backed 237 7 10 — 247 7 United States government 85 2 11 — 96 2 Government-sponsored enterprises 36 — 3 — 39 — Foreign government 16 — — — 16 — Total $ 7,483 $ 630 $ 151 $ 32 $ 7,634 $ 662 At December 31, 2021 Fixed maturity securities: Corporate $ 861 $ 13 $ 15 $ — $ 876 $ 13 States, municipalities and political subdivisions 105 2 2 1 107 3 Commercial mortgage-backed 10 — 11 — 21 — United States government 48 — — — 48 — Government-sponsored enterprises 7 — — — 7 — Foreign government 16 — — — 16 — Total $ 1,047 $ 15 $ 28 $ 1 $ 1,075 $ 16 |
Investments Classified by Contractual Maturity Date | Contractual maturity dates for fixed-maturities securities were: (Dollars in millions) Amortized Fair % of fair At June 30, 2022 Maturity dates: Due in one year or less $ 645 $ 645 5.4 % Due after one year through five years 3,721 3,670 30.8 Due after five years through ten years 3,519 3,416 28.6 Due after ten years 4,612 4,202 35.2 Total $ 12,497 $ 11,933 100.0 % |
Investment Income, Realized Investment Gains And Losses And Change In Unrealized Investment Gains And Losses | The following table provides investment income and investment gains and losses, net: (Dollars in millions) Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Investment income: Interest $ 124 $ 117 $ 247 $ 235 Dividends 72 60 137 118 Other 2 1 3 3 Total 198 178 387 356 Less investment expenses 3 3 7 7 Total $ 195 $ 175 $ 380 $ 349 Investment gains and losses, net: Equity securities: Investment gains and losses on securities sold, net $ 5 $ — $ 37 $ 6 Unrealized gains and losses on securities still held, net (1,175) 489 (1,882) 974 Subtotal (1,170) 489 (1,845) 980 Fixed maturities: Gross realized gains 2 11 6 14 Gross realized losses (2) (2) (3) (2) Subtotal — 9 3 12 Other 16 22 22 32 Total $ (1,154) $ 520 $ (1,820) $ 1,024 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Hierarchy for Assets Measured at Fair Value on a Recurring Basis | The following tables illustrate the fair value hierarchy for those assets measured at fair value on a recurring basis at June 30, 2022, and December 31, 2021. We do not have any liabilities carried at fair value. (Dollars in millions) Quoted prices in Significant other Significant Total At June 30, 2022 Fixed maturities, available for sale: Corporate $ — $ 6,803 $ — $ 6,803 States, municipalities and political subdivisions — 4,654 — 4,654 Commercial mortgage-backed — 249 — 249 United States government 144 — — 144 Government-sponsored enterprises — 60 — 60 Foreign government — 23 — 23 Subtotal 144 11,789 — 11,933 Common equities 9,092 — — 9,092 Nonredeemable preferred equities — 418 — 418 Separate accounts taxable fixed maturities — 844 — 844 Top Hat savings plan mutual funds and common 60 — — 60 Total $ 9,296 $ 13,051 $ — $ 22,347 At December 31, 2021 Fixed maturities, available for sale: Corporate $ — $ 7,497 $ — $ 7,497 States, municipalities and political subdivisions — 5,095 — 5,095 Commercial mortgage-backed — 273 — 273 United States government 123 — — 123 Government-sponsored enterprises — 8 — 8 Foreign government — 26 — 26 Subtotal 123 12,899 — 13,022 Common equities 10,862 — — 10,862 Nonredeemable preferred equities — 453 — 453 Separate accounts taxable fixed maturities — 948 — 948 Top Hat savings plan mutual funds and common 64 — — 64 Total $ 11,049 $ 14,300 $ — $ 25,349 |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block] | This table summarizes the book value and principal amounts of our long-term debt: (Dollars in millions) Book value Principal amount Interest Year of June 30, December 31, June 30, December 31, 2022 2021 2022 2021 6.900% 1998 Senior debentures, due 2028 $ 27 $ 27 $ 28 $ 28 6.920% 2005 Senior debentures, due 2028 391 391 391 391 6.125% 2004 Senior notes, due 2034 371 371 374 374 Total $ 789 $ 789 $ 793 $ 793 |
Fair Values of Deferred Annuities, Structured Settlements and Other Items | The following table shows fair values of our note payable and long-term debt: (Dollars in millions) Quoted prices in Significant other observable inputs (Level 2) Significant Total At June 30, 2022 Note payable $ — $ 44 $ — $ 44 6.900% senior debentures, due 2028 — 31 — 31 6.920% senior debentures, due 2028 — 443 — 443 6.125% senior notes, due 2034 — 426 — 426 Total $ — $ 944 $ — $ 944 At December 31, 2021 Note payable $ — $ 54 $ — $ 54 6.900% senior debentures, due 2028 — 34 — 34 6.920% senior debentures, due 2028 — 501 — 501 6.125% senior notes, due 2034 — 510 — 510 Total $ — $ 1,099 $ — $ 1,099 |
Fair Value of Life Policy Loans | The following table shows the fair value of our life policy loans included in other invested assets and the fair values of our deferred annuities and structured settlements included in life policy and investment contract reserves: (Dollars in millions) Quoted prices in Significant other Significant Total At June 30, 2022 Life policy loans $ — $ — $ 39 $ 39 Deferred annuities — — 649 649 Structured settlements — 155 — 155 Total $ — $ 155 $ 649 $ 804 At December 31, 2021 Life policy loans $ — $ — $ 44 $ 44 Deferred annuities — — 778 778 Structured settlements — 201 — 201 Total $ — $ 201 $ 778 $ 979 |
Property Casualty Loss and Lo_2
Property Casualty Loss and Loss Expenses (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Premiums Written, Net [Abstract] | |
Consolidated Property Casualty Loss And Loss Expense Reserves | This table summarizes activity for our consolidated property casualty loss and loss expense reserves: (Dollars in millions) Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Gross loss and loss expense reserves, beginning of period $ 7,287 $ 6,880 $ 7,229 $ 6,677 Less reinsurance recoverable 319 262 327 277 Net loss and loss expense reserves, beginning of period 6,968 6,618 6,902 6,400 Net incurred loss and loss expenses related to: Current accident year 1,299 949 2,296 1,982 Prior accident years (59) (119) (100) (229) Total incurred 1,240 830 2,196 1,753 Net paid loss and loss expenses related to: Current accident year 368 334 537 477 Prior accident years 524 433 1,245 995 Total paid 892 767 1,782 1,472 Net loss and loss expense reserves, end of period 7,316 6,681 7,316 6,681 Plus reinsurance recoverable 287 274 287 274 Gross loss and loss expense reserves, end of period $ 7,603 $ 6,955 $ 7,603 $ 6,955 |
Life Policy and Investment Co_2
Life Policy and Investment Contract Reserves (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Liability for Future Policy Benefit, before Reinsurance [Abstract] | |
Reserve For Losses Loss Adjustment Expenses Table | This table summarizes our life policy and investment contract reserves: (Dollars in millions) June 30, December 31, Life policy reserves: Ordinary/traditional life $ 1,414 $ 1,376 Other 52 52 Subtotal 1,466 1,428 Investment contract reserves: Deferred annuities 755 762 Universal life 679 679 Structured settlements 133 136 Other 8 9 Subtotal 1,575 1,586 Total life policy and investment contract reserves $ 3,041 $ 3,014 |
Deferred Acquisition Costs (Tab
Deferred Acquisition Costs (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Deferred Costs [Abstract] | |
Deferred Policy Acquisition Costs And Asset Reconciliation, Including the Amortized Deferred Policy Acquisition Costs | The table below shows the deferred policy acquisition costs and asset reconciliation. (Dollars in millions) Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Property casualty: Deferred policy acquisition costs asset, beginning of period $ 665 $ 586 $ 602 $ 542 Capitalized deferred policy acquisition costs 375 325 739 637 Amortized deferred policy acquisition costs (317) (281) (618) (549) Deferred policy acquisition costs asset, end of period $ 723 $ 630 $ 723 $ 630 Life: Deferred policy acquisition costs asset, beginning of period $ 314 $ 294 $ 303 $ 263 Capitalized deferred policy acquisition costs 15 15 30 29 Amortized deferred policy acquisition costs (11) (14) (21) (23) Shadow deferred policy acquisition costs 4 (1) 10 25 Deferred policy acquisition costs asset, end of period $ 322 $ 294 $ 322 $ 294 Consolidated: Deferred policy acquisition costs asset, beginning of period $ 979 $ 880 $ 905 $ 805 Capitalized deferred policy acquisition costs 390 340 769 666 Amortized deferred policy acquisition costs (328) (295) (639) (572) Shadow deferred policy acquisition costs 4 (1) 10 25 Deferred policy acquisition costs asset, end of period $ 1,045 $ 924 $ 1,045 $ 924 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive income (AOCI) includes changes in unrealized gains and losses on investments, changes in pension obligations and changes in life deferred acquisition costs, life policy reserves and other as follows: (Dollars in millions) Three months ended June 30, 2022 2021 Before tax Income tax Net Before tax Income tax Net Investments: AOCI, beginning of period $ 46 $ 8 $ 38 $ 830 $ 174 $ 656 OCI before investment gains and losses, net, recognized in net income (610) (127) (483) 141 28 113 Investment gains and losses, net, recognized in net income — — — (9) (1) (8) OCI (610) (127) (483) 132 27 105 AOCI, end of period $ (564) $ (119) $ (445) $ 962 $ 201 $ 761 Pension obligations: AOCI, beginning of period $ 27 $ 7 $ 20 $ (37) $ (6) $ (31) OCI excluding amortization recognized in net income — — — — — — Amortization recognized in net income — — — 1 — 1 OCI — — — 1 — 1 AOCI, end of period $ 27 $ 7 $ 20 $ (36) $ (6) $ (30) Life deferred acquisition costs, life policy reserves and other: AOCI, beginning of period $ 1 $ — $ 1 $ — $ — $ — OCI before investment gains and losses, net, recognized in net income 1 — 1 — — — Investment gains and losses, net, recognized in net income — — — — — — OCI 1 — 1 — — — AOCI, end of period $ 2 $ — $ 2 $ — $ — $ — Summary of AOCI: AOCI, beginning of period $ 74 $ 15 $ 59 $ 793 $ 168 $ 625 Investments OCI (610) (127) (483) 132 27 105 Pension obligations OCI — — — 1 — 1 Life deferred acquisition costs, life policy reserves and other OCI 1 — 1 — — — Total OCI (609) (127) (482) 133 27 106 AOCI, end of period $ (535) $ (112) $ (423) $ 926 $ 195 $ 731 (Dollars in millions) Six months ended June 30, 2022 2021 Before tax Income tax Net Before tax Income tax Net Investments: AOCI, beginning of period $ 792 $ 165 $ 627 $ 1,026 $ 215 $ 811 OCI before investment gains and losses, net, recognized in net income (1,353) (284) (1,069) (52) (11) (41) Investment gains and losses, net, recognized in net income (3) — (3) (12) (3) (9) OCI (1,356) (284) (1,072) (64) (14) (50) AOCI, end of period $ (564) $ (119) $ (445) $ 962 $ 201 $ 761 Pension obligations: AOCI, beginning of period $ 27 $ 7 $ 20 $ (41) $ (7) $ (34) OCI excluding amortization recognized in net income — — — 2 — 2 Amortization recognized in net income — — — 3 1 2 OCI — — — 5 1 4 AOCI, end of period $ 27 $ 7 $ 20 $ (36) $ (6) $ (30) Life deferred acquisition costs, life policy reserves and other: AOCI, beginning of period $ 1 $ — $ 1 $ (10) $ (2) $ (8) OCI before investment gains and losses, net, recognized in net income 1 — 1 10 2 8 Investment gains and losses, net, recognized in net income — — — — — — OCI 1 — 1 10 2 8 AOCI, end of period $ 2 $ — $ 2 $ — $ — $ — Summary of AOCI: AOCI, beginning of period $ 820 $ 172 $ 648 $ 975 $ 206 $ 769 Investments OCI (1,356) (284) (1,072) (64) (14) (50) Pension obligations OCI — — — 5 1 4 Life deferred acquisition costs, life policy reserves and other OCI 1 — 1 10 2 8 Total OCI (1,355) (284) (1,071) (49) (11) (38) AOCI, end of period $ (535) $ (112) $ (423) $ 926 $ 195 $ 731 |
Reinsurance (Tables)
Reinsurance (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Reinsurance Disclosures [Abstract] | |
Property Casualty Insurance Assumed And Ceded Business | The table below summarizes our consolidated property casualty insurance net written premiums, earned premiums and incurred loss and loss expenses: (Dollars in millions) Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Direct written premiums $ 1,871 $ 1,649 $ 3,574 $ 3,194 Assumed written premiums 193 161 456 366 Ceded written premiums (100) (96) (167) (153) Net written premiums $ 1,964 $ 1,714 $ 3,863 $ 3,407 Direct earned premiums $ 1,631 $ 1,465 $ 3,192 $ 2,894 Assumed earned premiums 134 109 255 210 Ceded earned premiums (68) (60) (132) (115) Earned premiums $ 1,697 $ 1,514 $ 3,315 $ 2,989 Direct incurred loss and loss expenses $ 1,174 $ 781 $ 2,069 $ 1,649 Assumed incurred loss and loss expenses 67 54 140 132 Ceded incurred loss and loss expenses (1) (5) (13) (28) Incurred loss and loss expenses $ 1,240 $ 830 $ 2,196 $ 1,753 |
Life Insurance Assumed and Ceded Business | The table below summarizes our consolidated life insurance earned premiums and contract holders' benefits incurred: (Dollars in millions) Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Direct earned premiums $ 96 $ 98 $ 186 $ 185 Ceded earned premiums (20) (19) (38) (37) Earned premiums $ 76 $ 79 $ 148 $ 148 Direct contract holders' benefits incurred 91 100 205 207 Ceded contract holders' benefits incurred (22) (15) (53) (42) Contract holders' benefits incurred $ 69 $ 85 $ 152 $ 165 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Differences Between Statutory Income Tax Rate And Effective Income Tax Rate | The differences between the 21% statutory federal income tax rate and our effective income tax rate were as follows: (Dollars in millions) Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Tax at statutory rate: $ (218) 21.0 % $ 183 21.0 % $ (294) 21.0 % $ 344 21.0 % Increase (decrease) resulting from: Tax-exempt income from municipal bonds (5) 0.5 (5) (0.6) (10) 0.7 (10) (0.6) Dividend received exclusion (5) 0.5 (4) (0.5) (10) 0.7 (9) (0.5) Other (5) 0.4 (5) (0.5) (6) 0.4 (8) (0.6) Provision (benefit) for income taxes $ (233) 22.4 % $ 169 19.4 % $ (320) 22.8 % $ 317 19.3 % |
Net Income (Loss) Per Common _2
Net Income (Loss) Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Calculations For Basic And Diluted Earnings Per Share | The table shows calculations for basic and diluted earnings per share: (In millions, except per share data) Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Numerator: Net income (loss)—basic and diluted $ (808) $ 703 $ (1,081) $ 1,323 Denominator: Basic weighted-average common shares outstanding 159.6 161.1 160.0 161.1 Effect of share-based awards: Stock options — 1.2 — 1.0 Nonvested shares — 0.6 — 0.6 Diluted weighted-average shares 159.6 162.9 160.0 162.7 Earnings (loss) per share: Basic $ (5.06) $ 4.36 $ (6.76) $ 8.21 Diluted $ (5.06) $ 4.31 $ (6.76) $ 8.13 Number of anti-dilutive share-based awards 2.0 0.4 2.2 1.0 |
Employee Retirement Benefits (T
Employee Retirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Defined Benefit Plans Disclosures | The following summarizes the components of net periodic (benefit) cost for our qualified and supplemental pension plans: (Dollars in millions) Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Service cost $ 3 $ 3 $ 5 $ 5 Non-service (benefit) costs: Interest cost 2 3 5 5 Expected return on plan assets (5) (6) (11) (11) Amortization of actuarial loss and prior service cost — 1 — 3 Other — — — 2 Total non-service benefit (3) (2) (6) (1) Net periodic (benefit) cost $ — $ 1 $ (1) $ 4 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment information is summarized in the following table: (Dollars in millions) Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Revenues: Commercial lines insurance Commercial casualty $ 350 $ 312 $ 686 $ 615 Commercial property 280 259 554 512 Commercial auto 210 198 415 391 Workers' compensation 68 68 136 135 Other commercial 86 74 165 144 Commercial lines insurance premiums 994 911 1,956 1,797 Fee revenues 1 1 2 2 Total commercial lines insurance 995 912 1,958 1,799 Personal lines insurance Personal auto 155 152 307 305 Homeowner 202 178 397 352 Other personal 56 52 111 101 Personal lines insurance premiums 413 382 815 758 Fee revenues 1 1 2 2 Total personal lines insurance 414 383 817 760 Excess and surplus lines insurance 124 95 236 184 Fee revenues — 1 1 1 Total excess and surplus lines insurance 124 96 237 185 Life insurance premiums 76 79 148 148 Fee revenues 1 1 2 2 Total life insurance 77 80 150 150 Investments Investment income, net of expenses 195 175 380 349 Investment gains and losses, net (1,154) 520 (1,820) 1,024 Total investment revenue (959) 695 (1,440) 1,373 Other Premiums 166 126 308 250 Other 3 3 5 5 Total other revenues 169 129 313 255 Total revenues $ 820 $ 2,295 $ 2,035 $ 4,522 Income (loss) before income taxes: Insurance underwriting results Commercial lines insurance $ (62) $ 145 $ 14 $ 275 Personal lines insurance (49) 29 16 26 Excess and surplus lines insurance 19 10 35 18 Life insurance 13 (2) 11 (4) Investments (987) 668 (1,495) 1,320 Other 25 22 18 5 Total income (loss) before income taxes $ (1,041) $ 872 $ (1,401) $ 1,640 Identifiable assets: June 30, December 31, Property casualty insurance $ 4,945 $ 4,421 Life insurance 1,486 1,590 Investments 21,590 24,481 Other 1,171 895 Total $ 29,192 $ 31,387 |
Accounting Policies (Details)
Accounting Policies (Details) $ in Millions | Jun. 30, 2022 USD ($) |
Accounting Standards Update 2018-12 | |
ASU 2018-12 | |
Estimated amount of reduction to shareholder's equity | $ 50 |
Investments - Analysis of Cost
Investments - Analysis of Cost or Amortized Cost, Gross Unrealized Gains and Losses and Fair Value for Investments (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale | ||
Total | $ 12,497 | $ 12,230 |
Fixed maturities, at fair value | 11,933 | 13,022 |
Debt Securities | ||
Debt Securities, Available-for-sale | ||
Total | 12,497 | 12,230 |
Gross unrealized gain | 98 | 808 |
Gross unrealized loss | 662 | 16 |
Fixed maturities, at fair value | 11,933 | 13,022 |
Debt Securities | Corporate | ||
Debt Securities, Available-for-sale | ||
Total | 7,167 | 7,043 |
Gross unrealized gain | 60 | 467 |
Gross unrealized loss | 424 | 13 |
Fixed maturities, at fair value | 6,803 | 7,497 |
Debt Securities | States, municipalities and political subdivisions | ||
Debt Securities, Available-for-sale | ||
Total | 4,845 | 4,768 |
Gross unrealized gain | 38 | 330 |
Gross unrealized loss | 229 | 3 |
Fixed maturities, at fair value | 4,654 | 5,095 |
Debt Securities | Commercial mortgage-backed | ||
Debt Securities, Available-for-sale | ||
Total | 256 | 264 |
Gross unrealized gain | 0 | 9 |
Gross unrealized loss | 7 | 0 |
Fixed maturities, at fair value | 249 | 273 |
Debt Securities | United States government | ||
Debt Securities, Available-for-sale | ||
Total | 146 | 121 |
Gross unrealized gain | 0 | 2 |
Gross unrealized loss | 2 | 0 |
Fixed maturities, at fair value | 144 | 123 |
Debt Securities | Government-sponsored enterprises | ||
Debt Securities, Available-for-sale | ||
Total | 60 | 8 |
Gross unrealized gain | 0 | 0 |
Gross unrealized loss | 0 | 0 |
Fixed maturities, at fair value | 60 | 8 |
Debt Securities | Foreign government | ||
Debt Securities, Available-for-sale | ||
Total | 23 | 26 |
Gross unrealized gain | 0 | 0 |
Gross unrealized loss | 0 | 0 |
Fixed maturities, at fair value | $ 23 | $ 26 |
Investments - Fair Values and U
Investments - Fair Values and Unrealized Losses by Investment Category and by Duration of Securities' Continuous Unrealized Loss Position (Detail) - Fixed maturities - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Investments, Unrealized Loss Position | ||
Less than 12 months Fair Value | $ 7,483 | $ 1,047 |
Less than 12 Months, Unrealized Loss | 630 | 15 |
12 months or more, Fair Value | 151 | 28 |
12 months or longer, Unrealized Loss | 32 | 1 |
Total Fair Value | 7,634 | 1,075 |
Gross unrealized loss | 662 | 16 |
Corporate | ||
Investments, Unrealized Loss Position | ||
Less than 12 months Fair Value | 4,768 | 861 |
Less than 12 Months, Unrealized Loss | 398 | 13 |
12 months or more, Fair Value | 107 | 15 |
12 months or longer, Unrealized Loss | 26 | 0 |
Total Fair Value | 4,875 | 876 |
Gross unrealized loss | 424 | 13 |
States, municipalities and political subdivisions | ||
Investments, Unrealized Loss Position | ||
Less than 12 months Fair Value | 2,341 | 105 |
Less than 12 Months, Unrealized Loss | 223 | 2 |
12 months or more, Fair Value | 20 | 2 |
12 months or longer, Unrealized Loss | 6 | 1 |
Total Fair Value | 2,361 | 107 |
Gross unrealized loss | 229 | 3 |
Commercial mortgage-backed | ||
Investments, Unrealized Loss Position | ||
Less than 12 months Fair Value | 237 | 10 |
Less than 12 Months, Unrealized Loss | 7 | 0 |
12 months or more, Fair Value | 10 | 11 |
12 months or longer, Unrealized Loss | 0 | 0 |
Total Fair Value | 247 | 21 |
Gross unrealized loss | 7 | 0 |
United States government | ||
Investments, Unrealized Loss Position | ||
Less than 12 months Fair Value | 85 | 48 |
Less than 12 Months, Unrealized Loss | 2 | 0 |
12 months or more, Fair Value | 11 | 0 |
12 months or longer, Unrealized Loss | 0 | 0 |
Total Fair Value | 96 | 48 |
Gross unrealized loss | 2 | 0 |
Government-sponsored enterprises | ||
Investments, Unrealized Loss Position | ||
Less than 12 months Fair Value | 36 | 7 |
Less than 12 Months, Unrealized Loss | 0 | 0 |
12 months or more, Fair Value | 3 | 0 |
12 months or longer, Unrealized Loss | 0 | 0 |
Total Fair Value | 39 | 7 |
Gross unrealized loss | 0 | 0 |
Foreign government | ||
Investments, Unrealized Loss Position | ||
Less than 12 months Fair Value | 16 | 16 |
Less than 12 Months, Unrealized Loss | 0 | 0 |
12 months or more, Fair Value | 0 | 0 |
12 months or longer, Unrealized Loss | 0 | 0 |
Total Fair Value | 16 | 16 |
Gross unrealized loss | $ 0 | $ 0 |
Investments - Schedule of Contr
Investments - Schedule of Contractual Maturities of Investments (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Amortized cost | ||
Due in one year or less | $ 645 | |
Due after one year through five years | 3,721 | |
Due after five years through ten years | 3,519 | |
Due after ten years | 4,612 | |
Total | 12,497 | $ 12,230 |
Fair value | ||
Due in one year or less | 645 | |
Due after one year through five years | 3,670 | |
Due after five years through ten years | 3,416 | |
Due after ten years | 4,202 | |
Total | $ 11,933 | $ 13,022 |
% of fair value | ||
Due in one year or less | 5.40% | |
Due after one year through five years | 30.80% | |
Due after five years through ten years | 28.60% | |
Due after ten years | 35.20% | |
Total | 100% |
Investments - Realized Investme
Investments - Realized Investment Gains and Losses and Change in Unrealized Investment Gains and Losses and Other Items (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Investment income: | ||||
Interest | $ 124 | $ 117 | $ 247 | $ 235 |
Dividends | 72 | 60 | 137 | 118 |
Other | 2 | 1 | 3 | 3 |
Total | 198 | 178 | 387 | 356 |
Less investment expenses | 3 | 3 | 7 | 7 |
Total | 195 | 175 | 380 | 349 |
Gain (Loss) on Sale of Investments | (1,829) | 1,011 | ||
Investment gains and losses, net: | ||||
Investment gains and losses, net | (1,154) | 520 | (1,820) | 1,024 |
Equity securities | ||||
Investment income: | ||||
Gain (Loss) on Sale of Investments | 5 | 0 | 37 | 6 |
Unrealized Gain (Loss) on Investments | (1,175) | 489 | (1,882) | 974 |
Investment gains and losses, net: | ||||
Other | 16 | 22 | 22 | 32 |
Investment gains and losses, net | (1,170) | 489 | (1,845) | 980 |
Fixed maturities | ||||
Investment gains and losses, net: | ||||
Gross realized gains | 2 | 11 | 6 | 14 |
Available-for-sale Securities, Gross Realized Losses | (2) | (2) | (3) | (2) |
Investment gains and losses, net | $ 0 | $ 9 | $ 3 | $ 12 |
Investments - Additional Inform
Investments - Additional Information (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 USD ($) security | Jun. 30, 2021 security | Jun. 30, 2022 USD ($) security | Jun. 30, 2021 security | Dec. 31, 2021 USD ($) security | |
Gain (Loss) on Securities | |||||
Equity Securities at Fair Value | $ 9,510 | $ 9,510 | $ 11,315 | ||
Largest Single Common Stock Holding | $ 664 | $ 664 | $ 862 | ||
Largest equity holdings to total equity portfolio | 7.30% | 7.30% | 7.90% | ||
Largest equity holdings to total portfolio | 3.10% | 3.10% | 3.50% | ||
Maximum | |||||
Gain (Loss) on Securities | |||||
Debt Securities, Available-for-sale, Allowance for Credit Loss | $ 1 | $ 1 | $ 1 | ||
Writedown of Impaired Securities Intended to be Sold | 1 | 1 | |||
Changes in Allowance for Credit Losses During Period | $ 1 | $ 1 | $ 1 | ||
Fixed maturities | |||||
Gain (Loss) on Securities | |||||
Number Of Impaired Securities Intended to be Sold | security | 1 | 0 | 2 | 0 | |
Number Of Securities Continuous Unrealized Loss Position | security | 2,735 | 2,735 | 278 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss 3 | $ 662 | $ 662 | $ 16 | ||
Number Of Securities Continuous Unrealized Loss Position and Below 70 Percent of Amortized Cost | 7 | 7 | 0 | ||
Fixed maturity investments, Percentage of amortized costs | 70% | 70% |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Hierarchy for Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | $ 11,933 | $ 13,022 |
Separate accounts | 860 | 959 |
Top Hat savings plan mutual funds and common equity (included in Other assets) | 60 | 64 |
Fair value of asset | 22,347 | 25,349 |
Quoted prices in active markets for identical assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Top Hat savings plan mutual funds and common equity (included in Other assets) | 60 | 64 |
Fair value of asset | 9,296 | 11,049 |
Significant other observable inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Top Hat savings plan mutual funds and common equity (included in Other assets) | 0 | 0 |
Fair value of asset | 13,051 | 14,300 |
Significant unobservable inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Top Hat savings plan mutual funds and common equity (included in Other assets) | 0 | 0 |
Fair value of asset | 0 | 0 |
Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 11,933 | 13,022 |
Debt Securities | Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 6,803 | 7,497 |
Debt Securities | States, municipalities and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 4,654 | 5,095 |
Debt Securities | Commercial mortgage-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 249 | 273 |
Debt Securities | United States government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 144 | 123 |
Debt Securities | Government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 60 | 8 |
Debt Securities | Foreign government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 23 | 26 |
Debt Securities | Quoted prices in active markets for identical assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 144 | 123 |
Debt Securities | Quoted prices in active markets for identical assets (Level 1) | Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 0 | 0 |
Debt Securities | Quoted prices in active markets for identical assets (Level 1) | States, municipalities and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 0 | 0 |
Debt Securities | Quoted prices in active markets for identical assets (Level 1) | Commercial mortgage-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 0 | 0 |
Debt Securities | Quoted prices in active markets for identical assets (Level 1) | United States government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 144 | 123 |
Debt Securities | Quoted prices in active markets for identical assets (Level 1) | Government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 0 | 0 |
Debt Securities | Quoted prices in active markets for identical assets (Level 1) | Foreign government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 0 | 0 |
Debt Securities | Significant other observable inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 11,789 | 12,899 |
Debt Securities | Significant other observable inputs (Level 2) | Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 6,803 | 7,497 |
Debt Securities | Significant other observable inputs (Level 2) | States, municipalities and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 4,654 | 5,095 |
Debt Securities | Significant other observable inputs (Level 2) | Commercial mortgage-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 249 | 273 |
Debt Securities | Significant other observable inputs (Level 2) | United States government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 0 | 0 |
Debt Securities | Significant other observable inputs (Level 2) | Government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 60 | 8 |
Debt Securities | Significant other observable inputs (Level 2) | Foreign government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 23 | 26 |
Debt Securities | Significant unobservable inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 0 | 0 |
Debt Securities | Significant unobservable inputs (Level 3) | Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 0 | 0 |
Debt Securities | Significant unobservable inputs (Level 3) | States, municipalities and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 0 | 0 |
Debt Securities | Significant unobservable inputs (Level 3) | Commercial mortgage-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 0 | 0 |
Debt Securities | Significant unobservable inputs (Level 3) | United States government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 0 | 0 |
Debt Securities | Significant unobservable inputs (Level 3) | Government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 0 | 0 |
Debt Securities | Significant unobservable inputs (Level 3) | Foreign government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fixed maturities, at fair value | 0 | 0 |
Equity securities | Common equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of asset | 9,092 | 10,862 |
Equity securities | Nonredeemable preferred equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of asset | 418 | 453 |
Equity securities | Quoted prices in active markets for identical assets (Level 1) | Common equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of asset | 9,092 | 10,862 |
Equity securities | Quoted prices in active markets for identical assets (Level 1) | Nonredeemable preferred equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of asset | 0 | 0 |
Equity securities | Significant other observable inputs (Level 2) | Common equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of asset | 0 | 0 |
Equity securities | Significant other observable inputs (Level 2) | Nonredeemable preferred equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of asset | 418 | 453 |
Equity securities | Significant unobservable inputs (Level 3) | Common equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of asset | 0 | 0 |
Equity securities | Significant unobservable inputs (Level 3) | Nonredeemable preferred equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of asset | 0 | 0 |
Taxable Fixed Maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Separate accounts | 844 | 948 |
Taxable Fixed Maturities | Quoted prices in active markets for identical assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Separate accounts | 0 | 0 |
Taxable Fixed Maturities | Significant other observable inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Separate accounts | 844 | 948 |
Taxable Fixed Maturities | Significant unobservable inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Separate accounts | $ 0 | $ 0 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Book Value and Principal Amounts of Long-Term Debt (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Book value | $ 789 | $ 789 |
Principal amount of debt | $ 793 | $ 793 |
Senior Debentures 6.900% Due 2028 | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.90% | 6.90% |
Debt issuance year | 1998 | 1998 |
Book value | $ 27 | $ 27 |
Principal amount of debt | $ 28 | $ 28 |
Senior Debentures 6.920% Due 2028 | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.92% | 6.92% |
Debt issuance year | 2005 | 2005 |
Book value | $ 391 | $ 391 |
Principal amount of debt | $ 391 | $ 391 |
Senior Notes 6.125% Due 2034 | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.125% | 6.125% |
Debt issuance year | 2004 | 2004 |
Book value | $ 371 | $ 371 |
Principal amount of debt | $ 374 | $ 374 |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Values of Note Payable and Long-Term Debt (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of note payable | $ 44 | $ 54 |
Total | $ 944 | $ 1,099 |
Senior Debentures 6.900 % Due 2028 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Interest rate | 6.90% | 6.90% |
Fair value of senior debt | $ 31 | $ 34 |
Senior Debentures 6.920 % Due 2028 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Interest rate | 6.92% | 6.92% |
Fair value of senior debt | $ 443 | $ 501 |
Senior Notes 6.125 % Due 2034 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Interest rate | 6.125% | 6.125% |
Fair value of senior debt | $ 426 | $ 510 |
Quoted prices in active markets for identical assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of note payable | 0 | 0 |
Total | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Senior Debentures 6.900 % Due 2028 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of senior debt | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Senior Debentures 6.920 % Due 2028 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of senior debt | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Senior Notes 6.125 % Due 2034 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of senior debt | 0 | 0 |
Significant other observable inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of note payable | 44 | 54 |
Total | 944 | 1,099 |
Significant other observable inputs (Level 2) | Senior Debentures 6.900 % Due 2028 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of senior debt | 31 | 34 |
Significant other observable inputs (Level 2) | Senior Debentures 6.920 % Due 2028 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of senior debt | 443 | 501 |
Significant other observable inputs (Level 2) | Senior Notes 6.125 % Due 2034 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of senior debt | 426 | 510 |
Significant unobservable inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of note payable | 0 | 0 |
Total | 0 | 0 |
Significant unobservable inputs (Level 3) | Senior Debentures 6.900 % Due 2028 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of senior debt | 0 | 0 |
Significant unobservable inputs (Level 3) | Senior Debentures 6.920 % Due 2028 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of senior debt | 0 | 0 |
Significant unobservable inputs (Level 3) | Senior Notes 6.125 % Due 2034 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of senior debt | $ 0 | $ 0 |
Fair Value Measurements - Fai_3
Fair Value Measurements - Fair Value of Life Policy Loans, Deferred Annuities, and Structured Settlements (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of life policy loans | $ 39 | $ 44 |
Liabilities Related to Investment Contracts, Fair Value Disclosure | 804 | 979 |
Quoted prices in active markets for identical assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of life policy loans | 0 | 0 |
Liabilities Related to Investment Contracts, Fair Value Disclosure | 0 | 0 |
Significant other observable inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of life policy loans | 0 | 0 |
Liabilities Related to Investment Contracts, Fair Value Disclosure | 155 | 201 |
Significant unobservable inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value of life policy loans | 39 | 44 |
Liabilities Related to Investment Contracts, Fair Value Disclosure | 649 | 778 |
Deferred annuities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities Related to Investment Contracts, Fair Value Disclosure | 649 | 778 |
Deferred annuities | Quoted prices in active markets for identical assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities Related to Investment Contracts, Fair Value Disclosure | 0 | 0 |
Deferred annuities | Significant other observable inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities Related to Investment Contracts, Fair Value Disclosure | 0 | 0 |
Deferred annuities | Significant unobservable inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities Related to Investment Contracts, Fair Value Disclosure | 649 | 778 |
Structured settlements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities Related to Investment Contracts, Fair Value Disclosure | 155 | 201 |
Structured settlements | Quoted prices in active markets for identical assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities Related to Investment Contracts, Fair Value Disclosure | 0 | 0 |
Structured settlements | Significant other observable inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities Related to Investment Contracts, Fair Value Disclosure | 155 | 201 |
Structured settlements | Significant unobservable inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities Related to Investment Contracts, Fair Value Disclosure | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and Cash Equivalents, Fair Value Disclosure | $ 1,098 | $ 1,139 |
Finance receivable | 87 | 98 |
Loss and loss expense reserves | 3,041 | 3,014 |
Life Policy Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Finance receivable | 31 | 31 |
Investment contract reserves: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Loss and loss expense reserves | 1,575 | 1,586 |
Investment contract reserves: | Deferred annuities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Loss and loss expense reserves | 755 | 762 |
Investment contract reserves: | Structured Settlement Annuity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Loss and loss expense reserves | $ 133 | $ 136 |
Property Casualty Loss and Lo_3
Property Casualty Loss and Loss Expenses - Consolidated Property Casualty Loss and Loss Expense Reserves (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Summary of Consolidated Property Casualty Loss and Loss Expense Reserves [Roll Forward] | ||||
Gross loss and loss expense reserves, beginning of period | $ 7,287 | $ 6,880 | $ 7,229 | $ 6,677 |
Less reinsurance recoverable | 319 | 262 | 327 | 277 |
Net loss and loss expense reserves, beginning of period | 6,968 | 6,618 | 6,902 | 6,400 |
Current accident year | 1,299 | 949 | 2,296 | 1,982 |
Prior accident years | (59) | (119) | (100) | (229) |
Total incurred | 1,240 | 830 | 2,196 | 1,753 |
Current accident year | 368 | 334 | 537 | 477 |
Prior accident years | 524 | 433 | 1,245 | 995 |
Total paid | 892 | 767 | 1,782 | 1,472 |
Net loss and loss expense reserves, end of period | 7,316 | 6,681 | 7,316 | 6,681 |
Plus reinsurance recoverable | 287 | 274 | 287 | 274 |
Gross loss and loss expense reserves, end of period | $ 7,603 | $ 6,955 | $ 7,603 | $ 6,955 |
Property Casualty Loss and Lo_4
Property Casualty Loss and Loss Expenses - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters | ||||||||
Reserve for loss and loss expenses | $ 7,603 | $ 6,955 | $ 7,603 | $ 6,955 | $ 7,287 | $ 7,229 | $ 6,880 | $ 6,677 |
Prior accident years | (59) | (119) | (100) | (229) | ||||
Life and Health Loss Reserves | ||||||||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters | ||||||||
Reserve for loss and loss expenses | 66 | 64 | 66 | 64 | ||||
Commercial Insurance | ||||||||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters | ||||||||
Prior accident years | (29) | (86) | (47) | (169) | ||||
Commercial Insurance | Commercial Casualty Line | ||||||||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters | ||||||||
Prior accident years | (26) | (32) | ||||||
Commercial Insurance | Workers' Compensation Line | ||||||||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters | ||||||||
Prior accident years | (18) | (27) | (27) | (52) | ||||
Commercial Insurance | Commercial Auto Line | ||||||||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters | ||||||||
Prior accident years | (37) | |||||||
Commercial Insurance | Commercial Property Line | ||||||||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters | ||||||||
Prior accident years | (7) | (12) | (34) | |||||
Personal Insurance | ||||||||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters | ||||||||
Prior accident years | (14) | (12) | (48) | (32) | ||||
Personal Insurance | Personal Auto | ||||||||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters | ||||||||
Prior accident years | (9) | (24) | ||||||
Personal Insurance | Homeowner | ||||||||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters | ||||||||
Prior accident years | (16) | (46) | ||||||
Excess and Surplus Lines Insurance | ||||||||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters | ||||||||
Prior accident years | $ (1) | $ (1) | $ (6) | $ 3 |
Reserves in Addition to Account
Reserves in Addition to Account Balance, Based on Expected No-Lapse Guarantee Benefits and Expected Policy Assessments (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | $ 3,041 | $ 3,014 |
Life policy reserves: | ||
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | 1,466 | 1,428 |
Life policy reserves: | Ordinary/traditional life | ||
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | 1,414 | 1,376 |
Life policy reserves: | Other | ||
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | 52 | 52 |
Investment contract reserves: | ||
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | 1,575 | 1,586 |
Investment contract reserves: | Deferred annuities | ||
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | 755 | 762 |
Investment contract reserves: | Universal life | ||
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | 679 | 679 |
Investment contract reserves: | Structured Settlement Annuity | ||
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | 133 | 136 |
Investment contract reserves: | Other | ||
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | $ 8 | $ 9 |
Deferred Acquisition Costs - De
Deferred Acquisition Costs - Deferred Policy Acquisition Costs and Asset Reconciliation (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Movement Analysis of Deferred Policy Acquisition Costs | ||||
Deferred policy acquisition costs asset, beginning of period | $ 979 | $ 880 | $ 905 | $ 805 |
Capitalized deferred policy acquisition costs | 390 | 340 | 769 | 666 |
Amortized deferred policy acquisition costs | (328) | (295) | (639) | (572) |
Shadow deferred policy acquisition costs | 4 | (1) | 10 | 25 |
Deferred policy acquisition costs asset, end of period | 1,045 | 924 | 1,045 | 924 |
Consolidated Property And Casualty Insurance | ||||
Movement Analysis of Deferred Policy Acquisition Costs | ||||
Deferred policy acquisition costs asset, beginning of period | 665 | 586 | 602 | 542 |
Capitalized deferred policy acquisition costs | 375 | 325 | 739 | 637 |
Amortized deferred policy acquisition costs | (317) | (281) | (618) | (549) |
Deferred policy acquisition costs asset, end of period | 723 | 630 | 723 | 630 |
Life Insurance Segment | ||||
Movement Analysis of Deferred Policy Acquisition Costs | ||||
Deferred policy acquisition costs asset, beginning of period | 314 | 294 | 303 | 263 |
Capitalized deferred policy acquisition costs | 15 | 15 | 30 | 29 |
Amortized deferred policy acquisition costs | (11) | (14) | (21) | (23) |
Shadow deferred policy acquisition costs | 4 | (1) | 10 | 25 |
Deferred policy acquisition costs asset, end of period | $ 322 | $ 294 | $ 322 | $ 294 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||
Accumulated other comprehensive income, net of tax, beginning of period | $ (423) | $ (423) | $ 648 | |||||
Accumulated other comprehensive income, net of tax, end of period | (423) | (423) | ||||||
Accumulated Net Unrealized Investment Gain (Loss) | ||||||||
Accumulated Other Comprehensive Income Loss Before Tax [Abstract] | ||||||||
Other comprehensive income before reclassification, before tax | (610) | $ 141 | (1,353) | $ (52) | ||||
Reclassification adjustment, before tax | 0 | (9) | (3) | (12) | ||||
Effect on other comprehensive income, before tax | (610) | 132 | (1,356) | (64) | ||||
Accumulated other comprehensive income, before tax, end of period | (564) | 962 | (564) | 962 | ||||
Accumulated Other Comprehensive Income (Loss), Tax [Abstract] | ||||||||
Other comprehensive income before reclassification, tax | (127) | 28 | (284) | (11) | ||||
Reclassification adjustment, tax | 0 | (1) | 0 | (3) | ||||
Effect on other comprehensive income, tax | (127) | 27 | (284) | (14) | ||||
Accumulated other comprehensive income, tax, end of period | (119) | 201 | (119) | 201 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||
Accumulated other comprehensive income, net of tax, beginning of period | (445) | 761 | (445) | 761 | ||||
Other comprehensive income before reclassification, net of tax | (483) | 113 | (1,069) | (41) | ||||
Reclassification adjustment, net of tax | 0 | (8) | (3) | (9) | ||||
Effect on other comprehensive income, net of tax | (483) | 105 | (1,072) | (50) | ||||
Accumulated other comprehensive income, net of tax, end of period | (445) | 761 | (445) | 761 | ||||
Accumulated Defined Benefit Plans Adjustment | ||||||||
Accumulated Other Comprehensive Income Loss Before Tax [Abstract] | ||||||||
Accumulated other comprehensive income, before tax, beginning of period | 27 | (37) | 27 | (41) | ||||
Other comprehensive income before reclassification, before tax | 0 | 0 | 0 | 2 | ||||
Reclassification adjustment, before tax | 0 | 1 | 0 | 3 | ||||
Effect on other comprehensive income, before tax | 0 | 1 | 0 | 5 | ||||
Accumulated other comprehensive income, before tax, end of period | 27 | (36) | 27 | (36) | ||||
Accumulated Other Comprehensive Income (Loss), Tax [Abstract] | ||||||||
Accumulated other comprehensive income, tax, beginning of period | 7 | (6) | 7 | (7) | ||||
Other comprehensive income before reclassification, tax | 0 | 0 | 0 | 0 | ||||
Reclassification adjustment, tax | 0 | 0 | 0 | 1 | ||||
Effect on other comprehensive income, tax | 0 | 0 | 0 | 1 | ||||
Accumulated other comprehensive income, tax, end of period | 7 | (6) | 7 | (6) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||
Accumulated other comprehensive income, net of tax, beginning of period | 20 | (30) | 20 | (30) | $ 20 | 20 | $ (31) | $ (34) |
Other comprehensive income before reclassification, net of tax | 0 | 0 | 0 | 2 | ||||
Reclassification adjustment, net of tax | 0 | 1 | 0 | 2 | ||||
Effect on other comprehensive income, net of tax | 0 | 1 | 0 | 4 | ||||
Accumulated other comprehensive income, net of tax, end of period | 20 | (30) | 20 | (30) | ||||
Accumulated Net Unrealized Gain (Loss) on Deferred Costs, Reserves And Other | ||||||||
Accumulated Other Comprehensive Income Loss Before Tax [Abstract] | ||||||||
Accumulated other comprehensive income, before tax, beginning of period | 1 | 0 | 1 | (10) | ||||
Other comprehensive income before reclassification, before tax | 1 | 0 | 1 | 10 | ||||
Reclassification adjustment, before tax | 0 | 0 | 0 | 0 | ||||
Effect on other comprehensive income, before tax | 1 | 0 | 1 | 10 | ||||
Accumulated other comprehensive income, before tax, end of period | 2 | 0 | 2 | 0 | ||||
Accumulated Other Comprehensive Income (Loss), Tax [Abstract] | ||||||||
Accumulated other comprehensive income, tax, beginning of period | 0 | 0 | 0 | (2) | ||||
Other comprehensive income before reclassification, tax | 0 | 0 | 0 | 2 | ||||
Reclassification adjustment, tax | 0 | 0 | 0 | 0 | ||||
Effect on other comprehensive income, tax | 0 | 0 | 0 | 2 | ||||
Accumulated other comprehensive income, tax, end of period | 0 | 0 | 0 | 0 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||
Accumulated other comprehensive income, net of tax, beginning of period | 2 | 0 | 2 | 0 | 1 | 1 | 0 | (8) |
Other comprehensive income before reclassification, net of tax | 1 | 0 | 1 | 8 | ||||
Reclassification adjustment, net of tax | 0 | 0 | 0 | 0 | ||||
Effect on other comprehensive income, net of tax | 1 | 0 | 1 | 8 | ||||
Accumulated other comprehensive income, net of tax, end of period | 2 | 0 | 2 | 0 | ||||
Accumulated Other Comprehensive Income (Loss) | ||||||||
Accumulated Other Comprehensive Income Loss Before Tax [Abstract] | ||||||||
Change in unrealized gains, net, on investments available for sale, before tax | (610) | 132 | (1,356) | (64) | ||||
Change in pension obligations, before tax | 0 | 1 | 0 | 5 | ||||
Change in life deferred acquisition costs, life policy reserves and other, before tax | 1 | 0 | 1 | 10 | ||||
Effect on other comprehensive income, before tax | (609) | 133 | (1,355) | (49) | ||||
Accumulated other comprehensive income, before tax, end of period | (535) | 926 | (535) | 926 | ||||
Accumulated Other Comprehensive Income (Loss), Tax [Abstract] | ||||||||
Change in unrealized gains, net, on investments available for sale, tax | (127) | 27 | (284) | (14) | ||||
Change in pension obligations, tax | 0 | 0 | 0 | 1 | ||||
Change in life deferred acquisition costs, life policy reserves and other, tax | 0 | 0 | 0 | 2 | ||||
Effect on other comprehensive income, tax | (127) | 27 | (284) | (11) | ||||
Accumulated other comprehensive income, tax, end of period | (112) | 195 | (112) | 195 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||
Accumulated other comprehensive income, net of tax, beginning of period | (423) | 731 | (423) | 731 | ||||
Change in unrealized gains, net, on investments available for sale, net of tax | (483) | 105 | (1,072) | (50) | ||||
Change in pension obligations, net of tax | 0 | 1 | 0 | 4 | ||||
Change in life deferred acquisition costs, life policy reserves and other, net of tax | 1 | 0 | 1 | 8 | ||||
Effect on other comprehensive income, net of tax | (482) | 106 | (1,071) | (38) | ||||
Accumulated other comprehensive income, net of tax, end of period | (423) | 731 | (423) | 731 | ||||
Previously Reported | Accumulated Net Unrealized Investment Gain (Loss) | ||||||||
Accumulated Other Comprehensive Income Loss Before Tax [Abstract] | ||||||||
Accumulated other comprehensive income, before tax, beginning of period | 46 | 830 | 792 | 1,026 | ||||
Accumulated Other Comprehensive Income (Loss), Tax [Abstract] | ||||||||
Accumulated other comprehensive income, tax, beginning of period | 8 | 174 | 165 | 215 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||
Accumulated other comprehensive income, net of tax, beginning of period | 38 | 627 | 656 | 811 | ||||
Previously Reported | Accumulated Other Comprehensive Income (Loss) | ||||||||
Accumulated Other Comprehensive Income Loss Before Tax [Abstract] | ||||||||
Accumulated other comprehensive income, before tax, beginning of period | 74 | 793 | 820 | 975 | ||||
Accumulated Other Comprehensive Income (Loss), Tax [Abstract] | ||||||||
Accumulated other comprehensive income, tax, beginning of period | $ 15 | $ 168 | $ 172 | $ 206 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||
Accumulated other comprehensive income, net of tax, beginning of period | $ 59 | $ 648 | $ 625 | $ 769 |
Reinsurance - Consolidated Prop
Reinsurance - Consolidated Property Casualty Insurance Assumed and Ceded Business (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Property Casualty Insurance Assumed And Ceded Business | ||||
Earned premiums | $ 1,773 | $ 1,593 | $ 3,463 | $ 3,137 |
Incurred loss and loss expenses | 1,309 | 915 | 2,348 | 1,918 |
Consolidated Property And Casualty Insurance | ||||
Property Casualty Insurance Assumed And Ceded Business | ||||
Direct written premiums | 1,871 | 1,649 | 3,574 | 3,194 |
Assumed written premiums | 193 | 161 | 456 | 366 |
Ceded written premiums | (100) | (96) | (167) | (153) |
Net written premiums | 1,964 | 1,714 | 3,863 | 3,407 |
Direct earned premiums | 1,631 | 1,465 | 3,192 | 2,894 |
Assumed earned premiums | 134 | 109 | 255 | 210 |
Ceded earned premiums | (68) | (60) | (132) | (115) |
Earned premiums | 1,697 | 1,514 | 3,315 | 2,989 |
Direct incurred loss and loss expenses | 1,174 | 781 | 2,069 | 1,649 |
Assumed incurred loss and loss expenses | 67 | 54 | 140 | 132 |
Ceded incurred loss and loss expenses | (1) | (5) | (13) | (28) |
Incurred loss and loss expenses | $ 1,240 | $ 830 | $ 2,196 | $ 1,753 |
Reinsurance - Life Insurance Ce
Reinsurance - Life Insurance Ceded Business (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Reinsurance for Insurance Companies, by Product Segment | ||||
Insurance losses and contract holders' benefits | $ 1,309 | $ 915 | $ 2,348 | $ 1,918 |
Life Insurance Segment | ||||
Reinsurance for Insurance Companies, by Product Segment | ||||
Direct earned premiums | 96 | 98 | 186 | 185 |
Ceded earned premiums | (20) | (19) | (38) | (37) |
Earned premiums | 76 | 79 | 148 | 148 |
Direct contract holders' benefits incurred | 91 | 100 | 205 | 207 |
Ceded contract holders' benefits incurred | (22) | (15) | (53) | (42) |
Insurance losses and contract holders' benefits | $ 69 | $ 85 | $ 152 | $ 165 |
Reinsurance (Details)
Reinsurance (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Consolidated Property And Casualty Insurance | ||
Reinsurance for Insurance Companies, by Product Segment | ||
Premium Receivable, Allowance for Credit Loss | $ 14 | $ 14 |
Income Taxes - Differences Betw
Income Taxes - Differences Between Statutory Income Tax Rate and Effective Income Tax Rate (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Increase (decrease) resulting from: | ||||
Tax at statutory rate | $ (218) | $ 183 | $ (294) | $ 344 |
Tax-exempt income from municipal bonds | (5) | (5) | (10) | (10) |
Dividend received exclusion | (5) | (4) | (10) | (9) |
Other | (5) | (5) | (6) | (8) |
Total provision (benefit) for income taxes | $ (233) | $ 169 | $ (320) | $ 317 |
Increase (decrease) resulting from: | ||||
Tax at statutory rate | 21% | 21% | 21% | 21% |
Effective Income Tax Rate Reconciliation, Tax Exempt Income, Percent | 0.50% | (0.60%) | 0.70% | (0.60%) |
Effective Income Tax Rate Reconciliation, Deduction, Dividend, Percent | 0.50% | (0.50%) | 0.70% | (0.50%) |
Other | 0.40% | (0.50%) | 0.40% | (0.60%) |
Provision for income taxes | 22.40% | 19.40% | 22.80% | 19.30% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Income Tax Contingency | |||||
Tax at statutory rate, percentage | 21% | 21% | 21% | 21% | |
Unrecognized Tax Benefits | $ 34 | $ 34 | $ 34 | ||
Deferred tax assets valuation allowance | 0 | 0 | 0 | ||
Cincinnati Global | |||||
Income Tax Contingency | |||||
Decrease in deferred tax assets | 8 | 11 | |||
Decrease in deferred tax valuation allowance | 8 | 11 | |||
Net deferred tax assets | 42 | 42 | |||
Deferred tax assets valuation allowance | 42 | 42 | |||
Cincinnati Global | United States | |||||
Income Tax Contingency | |||||
Operating loss carryforwards | 6 | 6 | 8 | ||
Cincinnati Global | United Kingdom | |||||
Income Tax Contingency | |||||
Operating loss carryforwards | $ 125 | $ 125 | $ 130 |
Net Income (Loss) Per Common _3
Net Income (Loss) Per Common Share - Calculations for Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Numerator: | ||||
Net income (loss)—basic and diluted | $ (808) | $ 703 | $ (1,081) | $ 1,323 |
Denominator: | ||||
Basic weighted-average common shares outstanding (in shares) | 159.6 | 161.1 | 160 | 161.1 |
Diluted weighted-average shares | 159.6 | 162.9 | 160 | 162.7 |
Earnings (loss) per share: | ||||
Basic (in USD per share) | $ (5.06) | $ 4.36 | $ (6.76) | $ 8.21 |
Diluted (in USD per share) | $ (5.06) | $ 4.31 | $ (6.76) | $ 8.13 |
Number of anti-dilutive stock-based awards (in shares) | 2 | 0.4 | 2.2 | 1 |
Stock Options | ||||
Denominator: | ||||
Effect of stock-based awards (in shares) | 0 | 1.2 | 0 | 1 |
Nonvested shares | ||||
Denominator: | ||||
Effect of stock-based awards (in shares) | 0 | 0.6 | 0 | 0.6 |
Employee Retirement Benefits -
Employee Retirement Benefits - Components of Net Periodic Costs for Qualified and Supplemental Pension Plans (Detail) - Qualified Pension Plans - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Defined Benefit Plan Disclosure | ||||
Service cost | $ 3 | $ 3 | $ 5 | $ 5 |
Interest cost | 2 | 3 | 5 | 5 |
Expected return on plan assets | (5) | (6) | (11) | (11) |
Amortization of actuarial loss and prior service cost | 0 | 1 | 0 | 3 |
Other | 0 | 0 | 0 | 2 |
Total non-service benefit | (3) | (2) | (6) | (1) |
Net periodic benefit cost | $ 0 | $ 1 | $ (1) | $ 4 |
Employee Retirement Benefits _2
Employee Retirement Benefits - Defined Contribution Plan (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Defined Benefit Plan Disclosure | ||||
Matching contributions to 401(k) and Top Hat plans | $ 6,000,000 | $ 5,000,000 | $ 14,000,000 | $ 11,000,000 |
Qualified Pension Plans | ||||
Defined Benefit Plan Disclosure | ||||
Pension contributions | $ 0 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 6 Months Ended |
Jun. 30, 2022 segment industry | |
Segment Reporting [Abstract] | |
Number of Industries Operating In | industry | 2 |
Number of Reportable Segments | segment | 5 |
Segment Information (Detail)
Segment Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Segment Reporting Information | |||||
Earned premiums | $ 1,773 | $ 1,593 | $ 3,463 | $ 3,137 | |
Fee revenues | 3 | 4 | 7 | 7 | |
Other revenues | 3 | 3 | 5 | 5 | |
Investment income, net of expenses | 195 | 175 | 380 | 349 | |
Investment gains and losses, net | (1,154) | 520 | (1,820) | 1,024 | |
Total revenues | 820 | 2,295 | 2,035 | 4,522 | |
Income before Income Taxes | (1,041) | 872 | (1,401) | 1,640 | |
Identifiable Assets | 29,192 | 29,192 | $ 31,387 | ||
Consolidated Property And Casualty Insurance | |||||
Segment Reporting Information | |||||
Earned premiums | 1,697 | 1,514 | 3,315 | 2,989 | |
Identifiable Assets | 4,945 | 4,945 | 4,421 | ||
Life Insurance Segment | |||||
Segment Reporting Information | |||||
Identifiable Assets | 1,486 | 1,486 | 1,590 | ||
Investment Segment | |||||
Segment Reporting Information | |||||
Identifiable Assets | 21,590 | 21,590 | 24,481 | ||
Corporate and Other | |||||
Segment Reporting Information | |||||
Identifiable Assets | 1,171 | 1,171 | $ 895 | ||
Operating Segments | Commercial Insurance | |||||
Segment Reporting Information | |||||
Earned premiums | 994 | 911 | 1,956 | 1,797 | |
Fee revenues | 1 | 1 | 2 | 2 | |
Total revenues | 995 | 912 | 1,958 | 1,799 | |
Income Before Income Taxes | (62) | 145 | 14 | 275 | |
Operating Segments | Commercial Insurance | Commercial Casualty Line | |||||
Segment Reporting Information | |||||
Earned premiums | 350 | 312 | 686 | 615 | |
Operating Segments | Commercial Insurance | Commercial Property Line | |||||
Segment Reporting Information | |||||
Earned premiums | 280 | 259 | 554 | 512 | |
Operating Segments | Commercial Insurance | Commercial Auto Line | |||||
Segment Reporting Information | |||||
Earned premiums | 210 | 198 | 415 | 391 | |
Operating Segments | Commercial Insurance | Workers' Compensation Line | |||||
Segment Reporting Information | |||||
Earned premiums | 68 | 68 | 136 | 135 | |
Operating Segments | Commercial Insurance | Other Commercial Lines | |||||
Segment Reporting Information | |||||
Earned premiums | 86 | 74 | 165 | 144 | |
Operating Segments | Personal Insurance | |||||
Segment Reporting Information | |||||
Earned premiums | 413 | 382 | 815 | 758 | |
Fee revenues | 1 | 1 | 2 | 2 | |
Total revenues | 414 | 383 | 817 | 760 | |
Income Before Income Taxes | (49) | 29 | 16 | 26 | |
Operating Segments | Personal Insurance | Personal Auto | |||||
Segment Reporting Information | |||||
Earned premiums | 155 | 152 | 307 | 305 | |
Operating Segments | Personal Insurance | Home Owner Line | |||||
Segment Reporting Information | |||||
Earned premiums | 202 | 178 | 397 | 352 | |
Operating Segments | Personal Insurance | Other Personal Lines | |||||
Segment Reporting Information | |||||
Earned premiums | 56 | 52 | 111 | 101 | |
Operating Segments | Excess and Surplus Lines Insurance | |||||
Segment Reporting Information | |||||
Earned premiums | 124 | 95 | 236 | 184 | |
Fee revenues | 0 | 1 | 1 | 1 | |
Total revenues | 124 | 96 | 237 | 185 | |
Income Before Income Taxes | 19 | 10 | 35 | 18 | |
Operating Segments | Life Insurance Segment | |||||
Segment Reporting Information | |||||
Earned premiums | 76 | 79 | 148 | 148 | |
Fee revenues | 1 | 1 | 2 | 2 | |
Total revenues | 77 | 80 | 150 | 150 | |
Income Before Income Taxes | 13 | (2) | 11 | (4) | |
Operating Segments | Investment Segment | |||||
Segment Reporting Information | |||||
Investment income, net of expenses | 195 | 175 | 380 | 349 | |
Investment gains and losses, net | (1,154) | 520 | (1,820) | 1,024 | |
Total revenues | (959) | 695 | (1,440) | 1,373 | |
Income Before Income Taxes | (987) | 668 | (1,495) | 1,320 | |
Corporate, Non-Segment | |||||
Segment Reporting Information | |||||
Total revenues | 169 | 129 | 313 | 255 | |
Corporate, Non-Segment | Reinsurance assumed and other non segment | |||||
Segment Reporting Information | |||||
Earned premiums | 166 | 126 | 308 | 250 | |
Corporate, Non-Segment | Corporate and Other | |||||
Segment Reporting Information | |||||
Other revenues | 3 | 3 | 5 | 5 | |
Income Before Income Taxes | $ 25 | $ 22 | $ 18 | $ 5 |