Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 16, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 000-04604 | ||
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, $2.00 par | ||
Trading Symbol | CINF | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 14,988,706,711 | ||
Entity Common Stock, Shares Outstanding | 156,665,018 | ||
Entity Central Index Key | 0000020286 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Documents Incorporated by Reference | Portions of the definitive Proxy Statement for Cincinnati Financial Corporation’s Annual Meeting of Shareholders to be held on May 4, 2024, are incorporated by reference into Part III of this Form 10-K. |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | DELOITTE & TOUCHE LLP |
Auditor Firm ID | 34 |
Auditor Location | Cincinnati, Ohio |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Investments | ||
Fixed maturities, at fair value (amortized cost: 2023—$14,361; 2022—$12,979) | $ 13,791 | $ 12,132 |
Equity securities, at fair value (cost: 2023—$4,282; 2022—$4,294) | 10,989 | 9,841 |
Other invested assets | 577 | 452 |
Total investments | 25,357 | 22,425 |
Cash and cash equivalents | 907 | 1,264 |
Investment income receivable | 192 | 160 |
Finance receivable | 108 | 92 |
Premiums receivable | 2,592 | 2,322 |
Reinsurance recoverable | 651 | 665 |
Prepaid reinsurance premiums | 55 | 51 |
Deferred policy acquisition costs | 1,093 | 1,013 |
Land, building and equipment, net, for company use (accumulated depreciation: 2023—$337; 2022—$322) | 208 | 202 |
Other assets | 681 | 646 |
Separate accounts | 925 | 892 |
Total assets | 32,769 | 29,732 |
Insurance reserves | ||
Loss and loss expense reserves | 9,050 | 8,400 |
Life policy and investment contract reserves | 3,068 | 3,015 |
Unearned premiums | 4,119 | 3,689 |
Other liabilities | 1,311 | 1,229 |
Deferred income tax | 1,324 | 1,054 |
Note payable | 25 | 50 |
Long-Term Debt and Lease Obligation | 849 | 841 |
Separate accounts | 925 | 892 |
Total liabilities | 20,671 | 19,170 |
Commitments and contingent liabilities (Note 16) | ||
Shareholders' Equity | ||
Common stock, par value—$2 per share; (authorized: 2023 and 2022—500 million shares; issued: 2023 and 2022—198.3 million shares) | 397 | 397 |
Paid-in capital | 1,437 | 1,392 |
Retained earnings | 13,084 | 11,711 |
Accumulated other comprehensive income | (435) | (614) |
Treasury stock, at cost (2023—41.3 million shares and 2022—41.2 million shares) | (2,385) | (2,324) |
Total shareholders' equity | 12,098 | 10,562 |
Total liabilities and shareholders' equity | $ 32,769 | $ 29,732 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, amortized cost | $ 14,361 | $ 12,979 |
Equity securities, cost | 4,282 | 4,294 |
Land, building and equipment, accumulated depreciation | $ 337 | $ 322 |
Common stock, par value | $ 2 | $ 2 |
Common stock, shares authorized | 500,000 | 500,000 |
Common stock, shares, issued | 198,300 | 198,300 |
Treasury Stock, Shares | 41,300 | 41,200 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues | |||
Earned premiums | $ 7,958 | $ 7,225 | $ 6,478 |
Investment income, net of expenses | 894 | 781 | 714 |
Investment gains and losses, net | 1,127 | (1,467) | 2,409 |
Fee revenues | 21 | 14 | 15 |
Other revenues | 13 | 10 | 10 |
Total revenues | 10,013 | 6,563 | 9,626 |
Benefits and Expenses | |||
Insurance losses and contract holders' benefits | 5,274 | 5,019 | 3,909 |
Underwriting, acquisition and insurance expenses | 2,384 | 2,162 | 1,946 |
Interest expense | 54 | 53 | 53 |
Other operating expenses | 25 | 23 | 20 |
Total benefits and expenses | 7,737 | 7,257 | 5,928 |
Income (Loss) Before Income Taxes | 2,276 | (694) | 3,698 |
Provision (Benefit) for Income Taxes | |||
Current | 210 | 148 | 247 |
Deferred | 223 | (355) | 483 |
Total provision (benefit) for income taxes | 433 | (207) | 730 |
Net Income (Loss) | $ 1,843 | $ (487) | $ 2,968 |
Per Common Share | |||
Net income (loss)—basic | $ 11.74 | $ (3.06) | $ 18.43 |
Net income (loss)—diluted | $ 11.66 | $ (3.06) | $ 18.24 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income (Loss) | $ 1,843 | $ (487) | $ 2,968 |
Other Comprehensive Income (Loss) | |||
Change in unrealized gains and losses on investments, net of tax (benefit) of $59, $(347) and $(50), respectively | 218 | (1,292) | (184) |
Amortization of pension actuarial gains and losses and prior service cost, net of tax (benefit) of $(1), $2 and $14, respectively | (5) | 7 | 54 |
Change in life policy reserves, reinsurance recoverable and other, net of tax (benefit) of $(8), $99 and $24, respectively | (34) | 374 | 92 |
Other comprehensive income (loss) | 179 | (911) | (38) |
Comprehensive Income (Loss) | $ 2,022 | $ (1,398) | $ 2,930 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
OCI, Debt Securities, Available-for-Sale, Unrealized Holding Gain (Loss), before Adjustment, Tax | $ 59 | $ (347) | $ (50) |
Other Comprehensive Income Loss, Pension And Other Postretirement Benefit Plans, Net Actuarial Loss And Prior Service Cost Arising During Period, Tax | (1) | 2 | 14 |
Change in life policy reserves, reinsurance recoverable and other, tax | $ (8) | $ 99 | $ 24 |
Consolidated Statements Of Shar
Consolidated Statements Of Shareholders' Equity - USD ($) shares in Thousands, $ in Millions | Total | Common Stock | Paid-In Capital | Retained Earnings | Retained Earnings Previously Reported | Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income Previously Reported | Treasury Stock, Common |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Effect of ASU 2018-12 adoption on opening retained earnings | $ (12) | |||||||
Effect of ASU 2018-12 adoption on opening accumulated other comprehensive income | $ (434) | |||||||
Beginning Balance at Dec. 31, 2020 | $ 397 | $ 1,328 | 10,073 | $ 10,085 | 335 | $ 769 | $ (1,790) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Share-based awards | 0 | (14) | 18 | |||||
Share-based compensation | 33 | |||||||
Other | 9 | 3 | ||||||
Net Income (Loss) | $ 2,968 | 2,968 | ||||||
Dividends declared | (406) | |||||||
Other comprehensive income (loss) | (38) | (38) | ||||||
Shares acquired - share repurchase authorization | (144) | |||||||
Shares acquired - share-based compensation plans | (8) | |||||||
Ending Balance at Dec. 31, 2021 | 12,764 | $ 397 | 1,356 | 12,635 | 12,635 | 297 | 297 | (1,921) |
Beginning Balance (in shares) at Dec. 31, 2020 | 160,900 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Share-based awards (in shares) | 600 | |||||||
Shares acquired—share repurchase authorization (in shares) | (1,200) | |||||||
Shares acquired - share-based compensation plans (in shares) | (100) | |||||||
Other (in shares) | 100 | |||||||
Ending Balance (in shares) at Dec. 31, 2021 | 160,300 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Effect of ASU 2018-12 adoption on opening retained earnings | 0 | |||||||
Effect of ASU 2018-12 adoption on opening accumulated other comprehensive income | 0 | |||||||
Share-based awards | $ 0 | (10) | 14 | |||||
Share-based compensation | 37 | |||||||
Other | 9 | 3 | ||||||
Net Income (Loss) | (487) | (487) | ||||||
Dividends declared | (437) | |||||||
Other comprehensive income (loss) | (911) | (911) | ||||||
Shares acquired - share repurchase authorization | (410) | |||||||
Shares acquired - share-based compensation plans | (10) | |||||||
Ending Balance at Dec. 31, 2022 | 10,562 | $ 397 | 1,392 | 11,711 | $ 11,711 | (614) | $ (614) | (2,324) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Share-based awards (in shares) | 500 | |||||||
Shares acquired—share repurchase authorization (in shares) | (3,800) | |||||||
Shares acquired - share-based compensation plans (in shares) | 0 | |||||||
Other (in shares) | 100 | |||||||
Ending Balance (in shares) at Dec. 31, 2022 | 157,100 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Effect of ASU 2018-12 adoption on opening retained earnings | 0 | |||||||
Effect of ASU 2018-12 adoption on opening accumulated other comprehensive income | 0 | |||||||
Share-based awards | $ 0 | (3) | 11 | |||||
Share-based compensation | 40 | |||||||
Other | 8 | 3 | ||||||
Net Income (Loss) | 1,843 | 1,843 | ||||||
Dividends declared | (470) | |||||||
Other comprehensive income (loss) | 179 | 179 | ||||||
Shares acquired - share repurchase authorization | (67) | |||||||
Shares acquired - share-based compensation plans | (8) | |||||||
Ending Balance at Dec. 31, 2023 | $ 12,098 | $ 397 | $ 1,437 | $ 13,084 | $ (435) | $ (2,385) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Share-based awards (in shares) | 280 | 400 | ||||||
Shares acquired—share repurchase authorization (in shares) | (600) | |||||||
Shares acquired - share-based compensation plans (in shares) | 0 | |||||||
Other (in shares) | 100 | |||||||
Ending Balance (in shares) at Dec. 31, 2023 | 157,000 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash Flows From Operating Activities | |||
Net Income (Loss) | $ 1,843 | $ (487) | $ 2,968 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, amortization and other | 112 | 127 | 118 |
Investment gains and losses, net | (1,108) | 1,493 | (2,353) |
Interest credited | 45 | 43 | 45 |
Deferred income tax expense | 223 | (355) | 483 |
Changes in: | |||
Premiums and reinsurance receivable | (264) | (340) | (240) |
Deferred policy acquisition costs | (80) | (96) | (78) |
Other assets | (30) | 28 | (11) |
Loss and loss expense reserves | 650 | 1,095 | 559 |
Life policy and investment contract reserves | 99 | 78 | 76 |
Unearned premiums | 430 | 418 | 311 |
Other liabilities | 90 | 88 | 128 |
Current income tax receivable/payable | 42 | (40) | (25) |
Net cash provided by operating activities | 2,052 | 2,052 | 1,981 |
Cash Flows From Investing Activities | |||
Sale, call or maturity of fixed maturities | 1,136 | 1,113 | 1,461 |
Sale of equity securities | 206 | 430 | 136 |
Purchase of fixed maturities | (2,554) | (1,901) | (2,388) |
Purchase of equity securities | (220) | (466) | (313) |
Changes in finance receivables | (15) | 7 | (2) |
Investment in buildings and equipment | (18) | (15) | (15) |
Change in other invested assets, net | (143) | (101) | 64 |
Net cash used in investing activities | (1,608) | (933) | (1,057) |
Cash Flows From Financing Activities | |||
Payment of cash dividends to shareholders | (454) | (423) | (395) |
Shares acquired - share repurchase authorization | (67) | (410) | (144) |
Changes in note payable | (25) | (4) | 0 |
Proceeds from stock options exercised | 9 | 10 | 13 |
Contract holders' funds deposited | 83 | 70 | 85 |
Contract holders' funds withdrawn | (218) | (144) | (146) |
Other | (129) | (93) | (98) |
Net cash used in financing activities | (801) | (994) | (685) |
Net change in cash and cash equivalents | (357) | 125 | 239 |
Cash and cash equivalents at beginning of year | 1,264 | 1,139 | 900 |
Cash and cash equivalents at end of year | 907 | 1,264 | 1,139 |
Supplemental Disclosures of Cash Flow Information | |||
Interest paid | 54 | 53 | 52 |
Income taxes paid | 136 | 165 | 257 |
Noncash Activities | |||
Equipment acquired under finance lease obligations | 20 | 17 | 12 |
Share-based compensation | 19 | 27 | 26 |
Other assets and other liabilities | $ 77 | $ 115 | $ 87 |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | Summary of Significant Accounting Policies Nature of Operations Cincinnati Financial Corporation (CFC) operates through The Cincinnati Insurance Company and Cincinnati Global Underwriting Ltd. SM (Cincinnati Global) insurance subsidiaries and two complementary subsidiary companies. The Cincinnati Insurance Company leads our insurance group that also includes two subsidiaries: The Cincinnati Casualty Company and The Cincinnati Indemnity Company. This group markets a broad range of standard market commercial and personal policies. The group focuses on delivery of quality customer service to our select group of 2,080 independent insurance agencies with 3,116 reporting locations across 46 states. Other subsidiaries of The Cincinnati Insurance Company include: The Cincinnati Life Insurance Company, which markets life insurance and fixed annuities; and The Cincinnati Specialty Underwriters Insurance Company, which offers excess and surplus lines property casualty insurance products. The Cincinnati Insurance Company also conducts the business of our reinsurance assumed operations, Cincinnati Re ® . The two CFC complementary subsidiaries are CSU Producer Resources Inc., which provides insurance brokerage services to our independent agencies so their clients can access our excess and surplus lines insurance products, and CFC Investment Company, which offers commercial leasing and financing services to our agents, their clients and other customers. Basis of Presentation Our consolidated financial statements include the accounts of the parent and its wholly owned subsidiaries and are presented in conformity with accounting principles generally accepted in the United States of America (GAAP). Foreign exchange rates related to Cincinnati Global's operations did not have a material impact to our consolidated financial statements. All intercompany balances and transactions have been eliminated in consolidation. The preparation of the consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect amounts reported in the consolidated financial statements and accompanying notes. Our actual results could differ from those estimates. Investments Our portfolio investments are primarily in publicly traded fixed-maturity and equity security investments. Fixed-maturity investments (taxable bonds, tax-exempt bonds, redeemable preferred equities and mortgage-backed securities) classified as available for sale and equity investments (common and nonredeemable preferred equities) are recorded at fair value in the consolidated financial statements. Changes in fair value of fixed-maturity securities are reported in other comprehensive income while equity securities are reported in net income. The number of fixed-maturity securities with fair values below 100% of amortized cost can be expected to fluctuate as interest rates rise or fall. Because of our strong capital and long-term investment horizon, our general intent is to hold fixed-maturity investments until maturity, regardless of short-term fluctuations in fair values. An available for sale fixed maturity is impaired if the fair value of the security is below amortized cost. The impaired loss is charged to net income when we have the intent to sell the security or it is more likely than not we will be required to sell the security before recovery of the amortized cost. For impaired securities we intend to hold, an allowance for credit related losses is recorded in investment losses when the company determines a credit loss has been incurred based on certain factors such as adverse conditions, credit rating downgrades or failure of the issuer to make scheduled principal or interest payments. A credit loss is determined using a discounted cash flow analysis by comparing the present value of expected cash flows with the amortized cost basis, limited to the difference between fair value and amortized cost. Noncredit losses are recognized in other comprehensive income as a change in unrealized gains and losses on investments. As securities are sold, we recognize the gain or loss in net income based on the trade date. Included within our other invested assets were $434 million and $337 million of private equity investments, $66 million and $47 million of real estate through direct property ownership and development projects in the United States, $44 million and $37 million held on deposit at Lloyd's and $33 million and $31 million of life policy loans at December 31, 2023 and 2022, respectively. The private equity investments provide their financial statements to us and generally report investments on their balance sheets at fair value. We use the equity method of accounting for private equity and real estate development investments. Lloyd's deposits primarily consist of highly liquid short-term investment instruments. Life policy loans are carried at the receivable value. Investment income, net of expenses, consists mainly of interest and dividends. We record interest on an accrual basis and record dividends at the ex-dividend date. We amortize premiums and discounts on fixed-maturity securities using the effective interest method over the expected life of the security. Fair Value Disclosures Fair value is defined as the exit price or the amount that would be (1) received to sell an asset or (2) paid to transfer a liability in an orderly transaction between marketplace participants at the measurement date. When determining an exit price, we rely upon observable market data whenever possible. We primarily base fair value for investments in equity and fixed-maturity securities (including redeemable preferred stock and assets held in separate accounts) on quoted market prices or on prices from the company’s nationally recognized pricing vendors, outside resources that supply global securities pricing, dividend, corporate action and descriptive information to support fund pricing, securities operations, research and portfolio management. The company obtains and reviews the pricing services' valuation methodologies and related inputs and validates these prices by replicating a sample across each asset class using a discounted cash flow model. When a price is not available from these sources, as in the case of securities that are not publicly traded, we determine the fair value using various inputs including quotes from independent brokers. The fair value of investments not priced by the company’s nationally recognized pricing vendors is immaterial. For the purpose of Accounting Standards Codification (ASC) 825, Financial Instruments disclosure, we estimate the fair value of our long-term senior notes on market pricing of similar debt instruments that are actively trading. We estimate the fair value of our note payable on the year-end outstanding balance because it is short term and tied to a variable interest rate. We estimate the fair value of liabilities for investment contracts and annuities using discounted cash flow calculations across a wide range of economic interest rate scenarios with a provision for our nonperformance risk. We estimate the fair value for policyholder loans on insurance contracts using a discounted cash flow model. Determination of fair value for structured settlements assumes the discount rates used to calculate the present value of expected payments are the risk-free spot rates plus an A3 rated bond spread for financial issuers at December 31, 2023, to account for nonperformance risk. See Note 3, Fair Value Measurements, for further details. Cash and Cash Equivalents Cash and cash equivalents are highly liquid instruments that include liquid debt instruments with original maturities of less than three months. These are carried at cost, which approximates fair value. Property Casualty Insurance The consolidated property casualty companies actively write property casualty insurance through independent agencies in 46 states. Our 10 largest states generated 50.1% of total earned premiums in 2023 and 2022. Ohio, our largest state, accounted for 13.4% of total earned premiums in 2023 and 2022. Illinois, New York, North Carolina, Pennsylvania and Georgia each accounted for between 4% and 6% of total earned premiums in 2023. Our largest single agency relationship accounted for approximately 0.6% of our total property casualty earned premiums in 2023. No aggregate agency relationship locations under a single ownership structure accounted for more than 6% of our total property casualty earned premiums in 2023. We record revenues for installment charges as fee revenues in the consolidated statements of income. Property casualty written premiums are deferred and recorded as earned premiums primarily on a pro rata basis over the terms of the policies. We record as unearned premiums the portion of written premiums that applies to unexpired policy terms. Expenses associated with successfully acquiring insurance policies – commissions, premium taxes and underwriting costs – are deferred and amortized over the terms of the policies. We assess recoverability of deferred acquisition costs at a level consistent with the way we acquire, service and manage insurance policies and measure profitability. We analyze our acquisition cost assumptions to reflect actual experience, and we evaluate potential premium deficiencies. Certain property casualty policies are not entered into policy underwriting systems as of the effective date of coverage. An estimate is recorded for these unprocessed written premiums. A large majority of the estimate is unearned and has no material impact on earned premiums. An allowance for credit losses on uncollectible property casualty premiums is updated and reviewed on a quarterly basis. The allowance for credit losses was $16 million, $13 million and $14 million at December 31, 2023, 2022 and 2021, respectively. Changes in the amount for each period were immaterial. We establish reserves to cover the expected cost of claims, losses and expenses related to investigating, processing and resolving claims. Although the appropriate amount of reserves is inherently uncertain, we base our decisions on past experience and current facts. Reserves are based on claims reported prior to the end of the year and estimates of incurred but not reported (IBNR) claims. We regularly review and update reserves using the most current information available. Any resulting adjustments are reflected in current calendar year insurance losses and policyholder benefits. We estimate that we may recover some of our costs through salvage and subrogation. Policyholder Dividends Certain workers’ compensation policies include the possibility of a policyholder earning a return of a portion of premium in the form of a policyholder dividend. The dividend generally is calculated by determining the profitability of a policy year along with the associated premium. We reserve for all probable future policyholder dividend payments. We record policyholder dividends as other underwriting expenses. Life Insurance We offer several types of life insurance and we account for each according to the duration of the contract. Short-duration life and health contracts are written to cover claims that arise during a short, fixed term of coverage. We generally have the right to change the amount of premium charged or cancel the coverage at the end of each contract term. We record premiums for short-duration life and health contracts similarly to property casualty contracts. Long-duration contracts are written to provide coverage for an extended period of time. Traditional long-duration contracts require policyholders to pay scheduled gross premiums, generally not less frequently than annually, over the term of the coverage. Premiums for these contracts, such as whole life insurance, are recognized as revenue when due. Some traditional long-duration contracts, such as ten-pay whole life insurance, have premium payment periods shorter than the period over which coverage is provided. For these contracts, the excess of premium over the amount required to pay expenses and benefits is recognized over the term of the coverage rather than over the premium payment period. We establish reserves for traditional long-duration contracts, including term, whole life and other products, based on th e present value of future benefits and claim expenses less the present value of future net premiums. Net premium is the portion of gross premium required to provide for all benefits and claim expenses. We estimate future benefits and claim expenses and net pr emium using certain cash flow assumptions including mortality, morbidity and lapse rates as well as a discount rate assumption. The cash flow assumptions are established based on our current expectations and are reviewed annually to determine any necessary updates. These assumptions are also updated on an interim basis if evidence suggests that they should be revised. We use both our own experience and industry experience, adjusted for historical trends, in arriving at our cash flow assumptions. The discount rate assumption is based on upper-medium grade fixed-income instrument yields (market value discount rates) and is updated quarterly. Certain assumptions, including the mortality, lapse and long-term interest rate reversion targets, were updated in 2023 as part of our annual assumption unlocking. See Note 5, Life Policy and Investment Contract Reserves, for further detail regarding the measurement impact on traditional long-duration contract reserves due to changes in the inputs, judgments and assumptions during the period. We also offer universal life, deferred annuity and other investment contracts. Universal life contracts are long-duration contracts for which contractual provisions are not fixed, unlike whole life insurance. Universal life contracts allow policyholders to vary the amount of premium, within limits, without our consent. However, we may vary the mortality, expense charges and the interest crediting rate, within limits, used to accumulate policy values. We do not record universal life premiums as revenue. Instead we recognize as revenue the mortality charges, administration charges and surrender charges when received. Some of our universal life contracts assess administration charges in the early years of the contract that are compensation for services we will provide in the later years of the contract. These administrati on charges are deferred and are recognized over the period when we provide those future services. Deferred annuities provide regular income payments to annuitants once certain criteria are met. During the deferral period, payments made by the annuitants under the contract accumulate at the crediting rate declared by the company but not less than a contract-specified guaranteed minimum interest rate. We also do not record deferred annuity premiums as revenue. We establish reserves for our universal life, deferred annuity and other investment contracts equal to the cumulative account balances, which include premium deposits plus credited interest less charges and withdrawals. Some of our universal life insurance 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. We capitalize acquisition costs associated with successfully acquiring traditional and universal life long-duration contracts. We charge these capitalized costs to expenses on a constant-level basis that approximates straight-line amortization over the expected term of the related contracts. An allowance for credit losses on uncollectible life insurance premiums is updated and reviewed on a quarterly basis. At December 31, 2023, 2022 and 2021, the allowance, including changes in the amount for each period, was immaterial. Separate Accounts We have issued universal life contracts with guaranteed minimum returns, referred to as bank-owned life insurance contracts (BOLIs). A BOLI is designed so the bank is the policy owner and the policy beneficiary. We legally segregate and record as separate accounts the assets and liabilities for certain BOLIs, when required by the specific contract provisions. We guarantee minimum investment returns, account values and death benefits for our separate account BOLIs. Our other BOLIs are general account products. We carry the assets of separate account BOLIs at fair value. The liabilities on separate account BOLIs primarily are carried at an amount equal to the contract holders’ account value, plus any cumulative unrealized gains on the related assets impacting separate account liabilities. The contract holders’ account value exceeded the current fair value of the BOLI invested assets and cash by approximately $43 million and $64 million at December 31, 2023 and 2022, respectively. Generally, investment income and investment gains and losses of the separate accounts accrue directly to the contract holder, and we do not include them in the consolidated statements of income. Revenues and expenses related to separate accounts consist of contractual fees and mortality, surrender and expense risk charges. Also, each separate account BOLI includes a negotiated capital gain and loss sharing arrangement between the company and the bank. A percentage of each separate account’s investment gains and losses representing contract fees and assessments accrues to us and is transferred from the separate account to our general account and is recognized as revenue or expense. We record as revenues separate account investment management fees in fee revenues of the consolidated statements of income. Reinsurance The Cincinnati Insurance Company offers reinsurance assumed for casualty (predominantly domestic exposure), specialty and property (worldwide exposure). Treaties are written on a pro rata and excess of loss basis. We also continue to assume risk with limited exposure as a reinsurer for involuntary state pools. Written premium is recorded, net of contract specific retrocessions, on an ultimate estimate basis and primarily earned on a pro rata basis over the coverage period of the treaty. Expenses are recorded as per contract terms and deferred over the earning period of the premium. We establish known loss reserves when reported. We establish reserves for losses in excess of reported activity in the form of IBNR. Reserves are established using actuarial analysis, which includes models and methods traditionally used for the types of exposures written. We establish reserves for event specific occurrences using modeling data and company specific data when available. We enter into other reinsurance transactions to reduce risk and uncertainty by buying property casualty reinsurance and retrocessional reinsurance as well as life reinsurance. Reinsurance and retrocessional reinsurance contracts do not relieve us from our obligation to policyholders, but rather help protect our financial strength to perform that duty. All of these ceded reinsurance contracts transfer the economic risk of loss. Premiums that we cede are deferred and recorded as earned premiums on a pro rata basis over the terms of the contracts. We estimate loss amounts recoverable from our reinsurers based on the reinsurance policy terms. Historically, our claims with reinsurers have been paid. An allowance for credit losses on uncollectible reinsurance premiums and recoverable assets is updated and reviewed on a quarterly basis. At December 31, 2023, 2022 and 2021, the allowances, including changes in the amount for each period, were immaterial. Income Taxes We calculate deferred income tax liabilities and assets using tax rates in effect when temporary differences in taxable income and financial statement income are expected to reverse. We recognize deferred income taxes for numerous temporary differences between our taxable income and financial statement income and other changes in shareholders’ equity. Such temporary differences relate primarily to unrealized gains and losses on investments and differences in the recognition of deferred acquisition costs, unearned premiums, insurance reserves, international earnings and basis differences in the carrying value of investments held. We charge deferred income taxes associated with balances that impact other comprehensive income, such as unrealized gains and losses of fixed-maturity investments, to shareholders’ equity in accumulated other comprehensive income (AOCI). We charge deferred taxes associated with other differences to income. See Note 11, Income Taxes, for further detail on our uncertain tax positions and other income tax items. Although no Internal Revenue Service (IRS) penalties currently are accrued, if incurred, they would be recognized as a component of income tax expense. Earnings per Share Net income per common share is based on the weighted average number of common shares outstanding during each of the respective years. We calculate net income per common share (diluted) assuming the exercise or conversion of share‑based awards using the treasury stock method. Land, Building and Equipment We record land at cost, and record building and equipment at cost less accumulated depreciation. Equipment held under finance leases also is classified as property and equipment with the related lease obligations recorded as liabilities. We capitalize and amortize costs for internally developed computer software during the application development stage. These costs generally consist of external consulting fees and internal payroll-related costs. Our depreciation is based on estimated useful lives (ranging from three We monitor land, building and equipment and software assets for potential impairments. Indicators of potential impairments may include a significant decrease in the fair values of the assets, considerable cost overruns on projects, a change in legal factors or business climate or other factors that indicate that the carrying amount may not be recoverable or useful. There were no recorded land, building and equipment impairments for 2023, 2022 or 2021. Finance Receivables Our leasing subsidiary provides auto and equipment direct financing (leases and loans) to commercial and individual clients. We generally transfer ownership of the property to the client as the terms of the leases expire. Our lease contracts contain bargain purchase options. We account for these leases and loans as sales-type leases. We capitalize and amortize lease or loan origination costs over the life of the financing, using the effective interest method. These costs may include, but are not limited to finder fees, broker fees, filing fees and the cost of credit reports. We record income as other revenues over the financing term using the effective interest method in the consolidated statements of income. An allowance for credit losses on finance receivables is updated and reviewed on a quarterly basis. At December 31, 2023, 2022 and 2021, the allowance, including changes in the amount for each period, was immaterial. Employee Benefit Pension Plan We sponsor a qualified defined benefit pension plan that was modified during 2008. We closed entry into the pension plan, and only participants 40 years of age or older could elect to remain in the plan. Our pension expenses are based on certain actuarial assumptions and also are composed of several components that are determined using the projected unit credit actuarial cost method. Refer to Note 13, Employee Retirement Benefits, for more information about our defined benefit pension plan. Share-Based Compensation We grant qualified and nonqualified share-based compensation under authorized plans. The stock options generally vest on a graded scale over three years following the date of grant and are exercisable over 10-year periods. We grant service-based restricted stock units that cliff vest three years after the date of grant as well as service-based restricted stock units that vest ratably over the three Goodwill and Intangible Assets We recognize goodwill and intangible assets generated through acquisitions within other assets in the consolidated balance sheets. Goodwill arises when the fair value of consideration transferred exceeds the fair value of the net identifiable assets acquired at the acquisition date. Goodwill and intangible assets with an indefinite life are not amortized. Intangible assets with a definite life are amortized on a straight-line basis over the estimated useful lives as follows: broker relationships, 15 years; internally developed technology, five years. We test for impairments on an annual basis or more frequently if events or circumstances indicate that the asset might be impaired. The company performed its annual impairment test on goodwill and intangibles at September 30, which did not result in the recognition of an impairment los s. Within Cincinnati Global, and included in Other, the company held goodwill of $30 million and intangible assets with an indefinite life of $31 million at December 31, 2023 and 2022, respectively. Subsequent Events There were no subsequent events requiring adjustment to the consolidated financial statements or disclosure. Adopted 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. 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 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 AOCI for discount rate updates. These ASUs also amend the previous guidance related to life deferred policy acquisition costs by requiring those costs be charged to expenses on a constant-level basis for a group of contracts that approximates straight-line amortization and by requiring 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. We adopted these ASUs on a modified retrospective basis on January 1, 2023, resulting in an after-t ax increase t o shareholders' e quity of $31 million. The following table illustrates the effect of adopting ASU 2018-12 in the consolidated balance sheets : (Dollars in millions) December 31, 2023 December 31, 2022 As originally reported As adjusted Difference Reinsurance recoverable $ 651 $ 640 $ 665 $ 25 Prepaid reinsurance premiums 55 79 51 (28) Deferred policy acquisition costs 1,093 1,014 1,013 (1) Total assets 32,769 29,736 29,732 (4) Life policy and investment contract reserves 3,068 3,059 3,015 (44) Deferred income tax 1,324 1,045 1,054 9 Total liabilities 20,671 19,205 19,170 (35) Retained earnings 13,084 11,702 11,711 9 Accumulated other comprehensive income (435) (636) (614) 22 Total shareholders' equity 12,098 10,531 10,562 31 Total liabilities and shareholders' equity 32,769 29,736 29,732 (4) The following table illustrates the effect of adopting ASU 2018-12 in the consolidated statements of income and consolidated statements of comprehensive income: (Dollars in millions, except per share data) Years ended December 31, 2023 2022 2021 As originally reported As adjusted Difference As originally reported As adjusted Difference Earned premiums $ 7,958 $ 7,219 $ 7,225 $ 6 $ 6,482 $ 6,478 $ (4) Insurance losses and contract holders' benefits 5,274 5,012 5,019 7 3,936 3,909 (27) Underwriting, acquisition and insurance expenses 2,384 2,162 2,162 — 1,951 1,946 (5) Deferred income tax expense 223 (355) (355) — 477 483 6 Net Income (Loss) 1,843 (486) (487) (1) 2,946 2,968 22 Change in life policy reserves, reinsurance recoverable and other, net of tax (34) 1 374 373 9 92 83 Other comprehensive income (loss) 179 (1,284) (911) 373 (121) (38) 83 Comprehensive Income (Loss) 2,022 (1,770) (1,398) 372 2,825 2,930 105 Net income (loss) per share: Basic $ 11.74 $ (3.06) $ (3.06) $ — $ 18.29 $ 18.43 $ 0.14 Diluted 11.66 (3.06) (3.06) — 18.10 18.24 0.14 The adoption of ASU 2018-12 did not have a material impact on the company's consolidated cash flows. Pending Accounting Updates ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 enhances reportable segment disclosures by requiring entities to disclose significant segment expenses that are regularly provided to the chief operating decision maker (CODM) and included within the reported measure of profit or loss. This ASU also requires disclosure of the title and position of the CODM as well as a description of how the reported measure of profit or loss is used to assess segment performance and allocate resources. The effective date of ASU 2023-07 is for annual reporting periods beginning after December 15, 2023, and interim reporting periods within annual periods beginning after December 15, 2024, and should be applied retrospectively to all prior periods presented. The ASU has not yet been adopted and will not have a material impact on our company’s consolidated financial position, results of operations or cash flows, but the ASU will require additional disclosures in our annual and interim financial statements. ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 enhances the transparency and decision usefulness of income tax disclosures by requiring entities to disclose specific categories within their rate reconciliation as well as additional items within those categories above a prescribed threshold. This ASU also requires disclosure of the amount of income taxes paid (net of refunds received) disaggregated by federal, state and foreign taxes as well as additional items within those categories above a prescribed threshold. The effective date of ASU 2023-09 is for annual reporting periods beginning after December 15, 2024, and should be applied prospectively with retrospective application permitted. The ASU has not yet been adopted and will not have a material impact on our company’s consolidated financial position, results of operations or cash flows, but the ASU will require additional disclosures in our annual financial statements. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2023 | |
Investments [Abstract] | |
Investments | 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 At December 31, 2023 gains losses Fixed-maturity securities: Corporate $ 7,836 $ 70 $ 454 $ 7,452 States, municipalities and political subdivisions 4,867 44 208 4,703 Government-sponsored enterprises 1,227 3 6 1,224 United States government 203 — 3 200 Mortgage-backed 203 — 16 187 Foreign government 25 — — 25 Total $ 14,361 $ 117 $ 687 $ 13,791 At December 31, 2022 Fixed-maturity securities: Corporate $ 7,412 $ 37 $ 580 $ 6,869 States, municipalities and political subdivisions 4,901 24 303 4,622 Government-sponsored enterprises 186 — 3 183 United States government 196 — 5 191 Mortgage-backed 250 — 16 234 Foreign government 34 — 1 33 Total $ 12,979 $ 61 $ 908 $ 12,132 The decrease in net unrealized investment losses in our fixed-maturity portfolio at December 31, 2023, is primarily due to lower short-term interest rates in addition to a tightening of corporate credit spreads. Our mortgage-backed securities had an average rating of Aa3/AA- and Aa2/AA- at December 31, 2023 and 2022, respectively. The table below provides fair values and 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 December 31, 2023 Fair Unrealized Fair Unrealized Fair Unrealized Fixed-maturity securities: Corporate $ 379 $ 13 $ 5,560 $ 441 $ 5,939 $ 454 States, municipalities and political subdivisions 313 2 1,932 206 2,245 208 Government-sponsored enterprises 652 3 113 3 765 6 United States government 32 — 129 3 161 3 Mortgage-backed 5 — 172 16 177 16 Foreign government 3 — 6 — 9 — Total $ 1,384 $ 18 $ 7,912 $ 669 $ 9,296 $ 687 At December 31, 2022 Fixed-maturity securities: Corporate $ 5,651 $ 412 $ 661 $ 168 $ 6,312 $ 580 States, municipalities and political subdivisions 2,600 274 77 29 2,677 303 Government-sponsored enterprises 123 3 3 — 126 3 United States government 146 3 41 2 187 5 Mortgage-backed 215 13 14 3 229 16 Foreign government 25 1 4 — 29 1 Total $ 8,760 $ 706 $ 800 $ 202 $ 9,560 $ 908 Contractual maturity dates for fixed-maturity securities were: (Dollars in millions) Amortized cost Fair % of fair value At December 31, 2023 Maturity dates: Due in one year or less $ 973 $ 964 7.0 % Due after one year through five years 4,407 4,304 31.2 Due after five years through ten years 3,592 3,474 25.2 Due after ten years 5,389 5,049 36.6 Total $ 14,361 $ 13,791 100.0 % 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 company had fixed-maturity securities with a fair value of $108 million and $107 million, on deposit with various states in compliance with regulatory requirements at December 31, 2023 and 2022, respectively. In addition, cash and fixed-maturity securities deposited with third parties used as collateral to secure liabilities on behalf of insureds, cedants and other creditors had a fair value of $125 million and $135 million at December 31, 2023 and 2022, respectively. The company had common equities with a fair value of $107 million and $101 million, at December 31, 2023 and 2022, respectively, held in Lloyd's trust accounts to provide a portion of the capital needed to support Cincinnati Global's operations. In the normal course of investing activities, the company enters into investments in limited partnerships, including private equity, real estate investments and asset-backed securities issued by third-parties. The company’s maximum exposure to loss with respect to these investments is limited to the investment carrying values included in the company’s consolidated balance sheets and any unfunded commitments. The following table provides investment income and investment gains and losses: (Dollars in millions) Years ended December 31, 2023 2022 2021 Investment income: Interest $ 600 $ 510 $ 477 Dividends 282 275 246 Other 25 11 5 Total 907 796 728 Less investment expenses 13 15 14 Total $ 894 $ 781 $ 714 Investment gains and losses, net: Equity securities: Investment gains and losses on securities sold, net $ (17) $ 16 $ 4 Unrealized gains and losses on securities still held, net 1,168 (1,526) 2,278 Subtotal 1,151 (1,510) 2,282 Fixed-maturity securities: Gross realized gains 4 6 36 Gross realized losses (5) (4) (5) Change in allowance for credit losses, net (17) — — Write-down of impaired securities with intent to sell (4) (5) (1) Subtotal (22) (3) 30 Other (2) 46 97 Total $ 1,127 $ (1,467) $ 2,409 The fair value of our equity portfolio was $10.989 billion and $9.841 billion at December 31, 2023 and 2022, respectively. At December 31, 2023 and 2022, Microsoft Corporation (Nasdaq:MSFT) and Apple, Inc. (Nasdaq:AAPL), equity holdings, were our largest single investment holdings with a fair value of $842 million and $597 million, which was 7.9% and 6.3% of our publicly traded common equities portfolio and 3.4% and 2.7% of the total investment portfolio, respectively. The allowance for credit losses on fixed-maturity securities was $18 million, $1 million and less than $1 million at December 31, 2023, 2022 and 2021, respectively. There were 2,840, 3,272 and 278 fixed-maturity securities in a total unrealized loss position of $687 million, $908 million and $16 million at December 31, 2023, 2022 and 2021, respectively. Of those totals, 20, 49 and no fixed-maturity securities had fair values below 70% of amortized cost at December 31, 2023, 2022 and 2021, respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements 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, 2022, and ultimately management determines fair value. Financial instruments reported at fair value in our consolidated financial statements are categorized based upon the following characteristics or inputs to the valuation techniques: • Level 1 – Financial assets and liabilities for which inputs are observable and are obtained from reliable quoted prices for identical assets or liabilities in active markets. This is the most reliable fair value measurement and includes, for example, active exchange-traded equity securities. • Level 2 – Financial assets and liabilities for which values are based on quoted prices in markets that are not active or for which values are based on similar assets and liabilities that are actively traded. This also includes pricing models for which the inputs are corroborated by market data. The technique used for the Level 2 fixed-maturity securities is the application of market-based modeling. The inputs used for all classes of fixed-maturity securities listed in the table below include relevant market information by asset class, trade activity of like securities, marketplace quotes, benchmark yields, spreads off benchmark yields, interest rates, U.S. Treasury or swap curves, yield to maturity and economic events. Specific to mortgage-backed securities, key inputs also include prepayment and default projections based on performance of the underlying collateral and current market data. Level 2 fixed-maturity securities are priced by a nationally recognized pricing vendor. The Level 2 nonredeemable preferred equities technique used is the application of market-based modeling. The inputs used, similar to those used by the pricing vendor for our fixed-maturity securities, include relevant market information, trade activity of like securities, yield to maturity, corporate action notices and economic events. Level 2 nonredeemable preferred equities are priced by a nationally recognized pricing vendor. • Level 3 – Financial assets and liabilities for which values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Level 3 inputs include the following: ◦ Quotes from brokers or other external sources that are not considered binding; ◦ Quotes from brokers or other external sources where it cannot be determined that market participants would in fact transact for the asset or liability at the quoted price; or ◦ Quotes from brokers or other external sources where the inputs are not deemed observable. The following tables illustrate the fair value hierarchy for those assets measured at fair value on a recurring basis at December 31, 2023 and 2022. We do not have any liabilities carried at fair value. (Dollars in millions) Level 1 Level 3 At December 31, 2023 Level 2 Total Fixed maturities, available for sale: Corporate $ — $ 7,452 $ — $ 7,452 States, municipalities and political subdivisions — 4,703 — 4,703 Government-sponsored enterprises — 1,224 — 1,224 United States government 200 — — 200 Mortgage-backed — 187 — 187 Foreign government — 25 — 25 Subtotal 200 13,591 — 13,791 Common equities 10,641 — — 10,641 Nonredeemable preferred equities — 348 — 348 Separate accounts taxable fixed maturities — 854 — 854 Top Hat savings plan mutual funds and common 67 — — 67 Total $ 10,908 $ 14,793 $ — $ 25,701 At December 31, 2022 Fixed maturities, available for sale: Corporate $ — $ 6,869 $ — $ 6,869 States, municipalities and political subdivisions — 4,622 — 4,622 Government-sponsored enterprises — 183 — 183 United States government 191 — — 191 Mortgage-backed — 234 — 234 Foreign government — 33 — 33 Subtotal 191 11,941 — 12,132 Common equities 9,454 — — 9,454 Nonredeemable preferred equities — 387 — 387 Separate accounts taxable fixed maturities — 815 — 815 Top Hat savings plan mutual funds and common 57 — — 57 Total $ 9,702 $ 13,143 $ — $ 22,845 We also held Level 1 cash and cash equivalents of $907 million and $1.264 billion at December 31, 2023 and 2022 , respectively. Level 3 assets reported at fair value in our consolidated financial statements are not material, and therefore no further disclosures are provided. Fair Value Disclosure 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 consolidated financial statements. The following table shows fair values of our note payable and long-term debt: (Dollars in millions) Level 1 Level 2 Level 3 Total At December 31, 2023 Note payable $ — $ 25 $ — $ 25 6.900% senior debentures, due 2028 — 29 — 29 6.920% senior debentures, due 2028 — 420 — 420 6.125% senior notes, due 2034 — 394 — 394 Total $ — $ 868 $ — $ 868 At December 31, 2022 Note payable $ — $ 50 $ — $ 50 6.900% senior debentures, due 2028 — 29 — 29 6.920% senior debentures, due 2028 — 418 — 418 6.125% senior notes, due 2034 — 388 — 388 Total $ — $ 885 $ — $ 885 Fair value of the note payable was determined based upon the outstanding balance at December 31, 2023 and 2022, because it is short term and tied to a variable interest rate. Fair value of the long-term debt was determined under the fair value measurements and disclosure accounting rules based on market pricing of similar debt instruments that are actively traded. We determine fair value for our debt the same way that we value corporate fixed maturities in our investment portfolio. Fair value can vary with macroeconomic conditions. Regardless of the fluctuations in fair value, the outstanding principal amount of our long-term debt was $793 million at December 31, 2023 and 2022. None of the long-term debt is encumbered by rating triggers. The note payable and long-term debt were classified as Level 2 as an active market does not exist, but fair value is determined based on observable inputs. The following table shows the fair value of our life policy loans, included in other invested assets: (Dollars in millions) Level 1 Level 2 Level 3 Total At December 31, 2023 Life policy loans $ — $ — $ 39 $ 39 At December 31, 2022 Life policy loans $ — $ — $ 37 $ 37 Outstanding principal and interest for these life policy loans totaled $33 million and $31 million at December 31, 2023 and 2022, respectively. To determine the fair value, we make the following significant assumptions: (1) the discount rates used to calculate the present value of expected payments are the risk-free spot rates, as nonperformance risk is minimal; and (2) the loan repayment rate by which policyholders pay off their loan balances is in line with past experience. The following table shows fair value of our deferred annuities and structured settlements included in life policy and investment contract reserves: (Dollars in millions) Level 1 Level 2 Level 3 Total At December 31, 2023 Deferred annuities $ — $ — $ 603 $ 603 Structured settlements — 141 — 141 Total $ — $ 141 $ 603 $ 744 At December 31, 2022 Deferred annuities $ — $ — $ 621 $ 621 Structured settlements — 143 — 143 Total $ — $ 143 $ 621 $ 764 Recorded reserves for the deferred annuities were $656 million and $734 million at December 31, 2023 and 2022, respectively. Recorded reserves for the structured settlements were $123 million and $129 million at December 31, 2023 and 2022, respectively. Fair values for deferred annuities were calculated based upon internally developed models because active markets and observable inputs do not exist. To determine the fair value, we made the following significant assumptions: (1) the discount rates used to calculate the present value of expected payments are the risk-free spot rates plus an A3 rated bond spread for financial issuers at December 31, 2023 and 2022, to account for nonperformance risk; (2) the rate of interest credited to policyholders is the portfolio net earned interest rate less a spread for expenses and profit; and (3) additional lapses occur when the credited interest rate is exceeded by an assumed competitor credited rate, which is a function of the risk-free rate of the economic scenario being modeled. Fair values for structured settlements were calculated based on internally developed models which assume the discount rates used to calculate the present value of expected payments are the risk-free spot rates plus an A3 rated bond spread for financial issuers at December 31, 2023 and 2022, to account for nonperformance risk. The structured settlements were classified as Level 2, as an active market does not exist, but fair value is based on observable inputs. |
Property Casualty Loss And Loss
Property Casualty Loss And Loss Expenses | 12 Months Ended |
Dec. 31, 2023 | |
Insurance [Abstract] | |
Property Casualty Loss And Loss Expenses | Property Casualty Loss and Loss Expenses We use actuarial methods, models, assumptions 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 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 finance 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. Our reserving process takes into account known facts and interpretations of circumstances and factors including the type of claim, policy provisions pertaining to each claim, potential subrogation or salvage recoverable, large loss activity and trends, new business activity, judicial decisions, economic conditions, changes in law and regulation and product and underwriting changes. There have been no significant changes in methodologies and assumptions used in calculating loss and loss expense reserves for all years presented. There were no material additional premiums or return premiums accrued for as a result of prior-year effects. Our claims representatives establish case reserves when claims are reported to provide for our unpaid loss and loss expense obligation associated with individual claims. For events designated as natural catastrophes resulting in losses incurred related to direct premiums, we calculate IBNR reserves directly as a result of an estimated claim counts and estimated average dollar amount per claim for each event. Once individual case reserves are established for a catastrophe event, we reduce the IBNR reserves. Our actuarial staff uses generally accepted actuarial methods and models to derive ultimate loss and IBNR reserve estimates. The time interval between a claims occurrence and its settlement is one of the crucial attributes when estimating ultimate losses and IBNR reserves. Due to the uncertainties inherent with loss reserves, our ultimate loss experience could prove better or worse than what our carried reserves reflect. To the extent that reserves are inadequate and are required to be increased, the amount of the increase is a charge in that period, raising our loss and loss expense ratio and reducing earnings. To the extent that reserves are redundant and are required to be released, the amount of the release is a credit in that period, reducing our loss and loss expense ratio and increasing earnings. This table summarizes activity for our consolidated property casualty loss and loss expense reserves: (Dollars in millions) Years ended December 31, 2023 2022 2021 Gross loss and loss expense reserves, January 1 $ 8,336 $ 7,229 $ 6,677 Less reinsurance recoverable 405 327 277 Net loss and loss expense reserves, January 1 7,931 6,902 6,400 Net incurred loss and loss expenses related to: Current accident year 5,173 4,875 4,024 Prior accident years (215) (159) (428) Total incurred 4,958 4,716 3,596 Net paid loss and loss expenses related to: Current accident year 1,875 1,592 1,379 Prior accident years 2,401 2,095 1,715 Total paid 4,276 3,687 3,094 Net loss and loss expense reserves, December 31 8,613 7,931 6,902 Plus reinsurance recoverable 362 405 327 Gross loss and loss expense reserves, December 31 $ 8,975 $ 8,336 $ 7,229 The reserve for loss and loss expense in the consolidated balance sheets also included $75 million, $64 million and $76 million, at December 31, 2023, 2022 and 2021, respectively, for certain life and health loss and loss expense reserves. Additional disclosures for reserves related to these health claims are not material and therefore not provided. We experienced $215 million of favorable development on prior accident years including $123 million of favorable development in commercial lines, $64 million of favorable development in personal lines and $11 million of favorable development in excess and surplus lines during 2023. Within commercial lines, we recognized favorable development of $66 million for the workers' compensation line and $55 million for the commercial property line due to reduced uncertainty of prior accident year loss and loss expense for these lines. This was partially offset by unfavorable development of $15 million for the commercial casualty line. Within personal lines, we recognized favorable reserve development of $53 million for the homeowner line of business and $15 million in personal auto. We experienced $159 million of favorable development on prior accident years including $76 million of favorable development in commercial lines, $61 million of favorable development in personal lines and $9 million of favorable development in excess and surplus lines during 2022. Within commercial lines, we recognized favorable development of $63 million for the workers' compensation line and $44 million for the commercial property line due to reduced uncertainty of prior accident year loss and loss expense for these lines. This was partially offset by unfavorable development of $25 million for the commercial casualty line and $23 million for the commercial auto line. Within personal lines, we recognized favorable reserve development of $54 million for the homeowner line of business. We experienced $428 million of favorable development on prior accident years including $353 million of favorable development in commercial lines, $50 million of favorable development in personal lines and $7 million of unfavorable development in excess and surplus lines during 2021. Within commercial lines, we recognized favorable development of $120 million for the commercial casualty line, $97 million for the commercial property line, $66 million for the workers' compensation line and $43 million or the commercial auto line due to reduced uncertainty of prior accident year loss and loss expense for these lines. Within personal lines, we recognized favorable reserve development of $31 million in personal auto and $14 million for the homeowner line of business. Included in our lines of business are asbestos and environmental claims. We carried $98 million and $92 million of net loss and loss expense reserves for asbestos and environmental claims at December 31, 2023 and 2022, respectively. The asbestos and environmental claims amounts for each respective year constituted less than 2.0% of total net loss and loss expense reserves at these year-end dates. We believe our exposure to asbestos and environmental claims is limited, largely because our reinsurance retention was $500,000 or below prior to 1987. We also were predominantly a personal lines company in the 1960s and 1970s. During the 1980s and early 1990s, commercial lines grew as a percentage of our overall business and our exposure to asbestos and environmental claims grew accordingly. Over that period, we included an asbestos and environmental exclusion in almost all policies or endorsed the exclusion to the policies. We have no exposure to asbestos and environmental claims related to our acquisition of Cincinnati Global. We continue to monitor our claims for evidence of material exposure to other mass tort classes but have found no such credible evidence to date. The following table provides a reconciliation of the property casualty incurred losses and allocated loss adjustment expenses (ALAE) development and paid losses and ALAE development information at December 31, 2023. (Dollars in millions) Cumulative incurred losses Cumulative paid losses and ALAE as reported within the triangles, Liabilities for loss and ALAE for accident years not presented in the triangles, net of reinsurance Total liabilities for loss and ALAE, net of reinsurance Reinsurance recoverable on unpaid losses Total liabilities for gross loss and loss expense reserves Commercial casualty $ 6,497 $ 3,680 $ 91 $ 2,908 $ 19 $ 2,927 Workers' compensation 1,826 1,160 316 982 54 1,036 Commercial auto 2,432 1,657 32 807 4 811 Commercial property 3,496 3,033 12 475 50 525 Personal auto 1,884 1,594 12 302 25 327 Homeowner 2,576 2,231 6 351 (3) 348 Excess and surplus 1,545 707 4 842 33 875 Other lines 1,686 Total liabilities for loss and ALAE reserves 8,535 Unallocated loss adjustment expense reserves 440 Gross loss and loss expense reserves $ 8,975 For all lines of business, the claim counts reported are primarily measured by insurance coverages that are triggered when a loss occurs and a reserve is established. For this purpose, coverages are defined as unique combinations of certain attributes such as line of business and cause of loss. Claims that are opened and closed without payment are included in the reported claim counts. Claim counts are presented on a direct basis only and do not reflect any assumed or ceded reinsurance. In the following tables, commercial casualty, workers' compensation and excess and surplus lines each disclose 10 accident years of loss and ALAE reserves and the cumulative number of reported claims. Commercial auto, commercial property, personal auto and homeowner each disclose five accident years of loss and ALAE reserves and the cumulative number of reported claims consistent with the number of years for which claims incurred typically remain outstanding. Commercial Casualty The following table shows the commercial casualty incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency: (Dollars in millions, reported claims in thousands) As of December 31, 2023 Incurred losses and ALAE, net of reinsurance for the years ended December 31, Total of incurred Cumulative number of Accident Unaudited Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2014 $ 503 $ 496 $ 479 $ 476 $ 479 $ 465 $ 469 $ 466 $ 462 $ 464 $ 10 21 2015 533 526 529 516 508 502 504 496 513 14 22 2016 563 574 557 555 554 538 531 525 19 22 2017 610 597 577 571 555 554 553 29 21 2018 650 641 622 588 612 618 55 22 2019 672 643 607 669 682 80 21 2020 674 629 606 593 112 15 2021 714 697 697 265 14 2022 924 902 453 13 2023 950 729 8 Total $ 6,497 Cumulative paid losses and ALAE, net of reinsurance 2014 $ 34 $ 97 $ 172 $ 287 $ 338 $ 390 $ 409 $ 421 $ 437 $ 447 2015 38 108 200 287 362 404 424 453 471 2016 46 126 228 331 395 434 466 485 2017 48 122 234 320 392 437 486 2018 44 148 253 345 441 505 2019 39 134 259 394 503 2020 33 102 242 345 2021 31 123 251 2022 37 141 2023 46 Total 3,680 All outstanding liabilities before 2014, net of reinsurance 91 Liabilities for loss and ALAE, net of reinsurance $ 2,908 The following table shows the average annual percentage payout of incurred losses for the commercial casualty line of business: Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 6 7 8 9 10 Average annual percentage payout 6.4% 13.7% 18.9% 18.4% 13.8% 9.1% 5.7% 4.0% 3.5% 2.1% Workers’ Compensation The following table shows the workers’ compensation incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency: (Dollars in millions, reported claims in thousands) As of December 31, 2023 Incurred losses and ALAE, net of reinsurance for the years ended December 31, Total of incurred Cumulative number of Accident Unaudited Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2014 $ 261 $ 233 $ 214 $ 203 $ 201 $ 198 $ 197 $ 202 $ 202 $ 203 $ 15 19 2015 246 220 208 195 179 173 173 171 167 20 17 2016 230 218 206 188 183 183 183 181 22 16 2017 218 208 190 183 172 167 160 21 15 2018 222 207 199 186 179 175 26 15 2019 224 215 202 188 178 31 14 2020 204 190 172 153 39 11 2021 202 190 183 42 11 2022 209 205 65 11 2023 221 106 9 Total $ 1,826 Cumulative paid losses and ALAE, net of reinsurance 2014 $ 56 $ 110 $ 134 $ 148 $ 157 $ 162 $ 165 $ 168 $ 171 $ 172 2015 47 93 115 129 134 137 139 139 140 2016 46 97 119 131 141 146 148 150 2017 45 88 106 114 119 122 126 2018 48 95 115 127 133 135 2019 49 94 115 122 129 2020 37 68 82 96 2021 37 82 100 2022 37 76 2023 36 Total 1,160 All outstanding liabilities before 2014, net of reinsurance 316 Liabilities for loss and ALAE, net of reinsurance $ 982 The following table shows the average annual percentage payout of incurred losses for the workers’ compensation line of business: Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 6 7 8 9 10 Average annual percentage payout 24.3% 25.2% 11.3% 6.6% 3.9% 2.1% 1.6% 0.8% 0.8% 0.9% Commercial Auto The following table shows the commercial auto incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency: (Dollars in millions, reported claims in thousands) As of December 31, 2023 Incurred losses and ALAE, net of reinsurance for the years ended December 31, Total of incurred Cumulative number of reported claims Accident Unaudited Year 2019 2020 2021 2022 2023 2019 $ 452 $ 451 $ 453 $ 469 $ 471 $ 7 46 2020 424 391 384 377 16 36 2021 470 477 465 51 39 2022 558 569 105 41 2023 550 203 34 Total $ 2,432 Cumulative paid losses and ALAE, net of reinsurance 2019 $ 183 $ 268 $ 333 $ 395 $ 435 2020 154 214 280 328 2021 179 278 346 2022 217 332 2023 216 Total 1,657 All outstanding liabilities before 2019, net of reinsurance 32 Liabilities for loss and ALAE, net of reinsurance $ 807 The following table shows the average annual percentage payout of incurred losses for the commercial auto line of business. Commercial auto includes both physical damage and liability losses. A majority of the incurred losses paid after year 2 are the result of liability losses. Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 Average annual percentage payout 39.1% 18.9% 15.3% 12.8% 8.6% Commercial Property The following table shows the commercial property incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency: (Dollars in millions, reported claims in thousands) As of December 31, 2023 Incurred losses and ALAE, net of reinsurance for the years ended December 31, Total of incurred Cumulative number of reported claims Accident Unaudited Year 2019 2020 2021 2022 2023 2019 $ 621 $ 606 $ 600 $ 598 $ 592 $ 3 17 2020 855 742 719 716 22 24 2021 607 586 576 5 14 2022 813 779 24 16 2023 833 92 12 Total $ 3,496 Cumulative paid losses and ALAE, net of reinsurance 2019 $ 413 $ 561 $ 579 $ 590 $ 591 2020 489 637 672 687 2021 326 527 558 2022 393 691 2023 506 Total 3,033 All outstanding liabilities before 2019, net of reinsurance 12 Liabilities for loss and ALAE, net of reinsurance $ 475 The following table shows the average annual percentage payout of incurred losses for the commercial property line of business: Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 Average annual percentage payout 61.1% 29.7% 4.5% 2.0% —% Personal Auto The following table shows the personal auto incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency: (Dollars in millions, reported claims in thousands) As of December 31, 2023 Incurred losses and ALAE, net of reinsurance for the years ended December 31, Total of incurred Cumulative number of reported claims Accident Unaudited Year 2019 2020 2021 2022 2023 2019 $ 399 $ 383 $ 380 $ 383 $ 381 $ 2 102 2020 305 281 277 277 3 71 2021 350 343 342 6 80 2022 427 418 15 86 2023 466 72 86 Total $ 1,884 Cumulative paid losses and ALAE, net of reinsurance 2019 $ 250 $ 314 $ 346 $ 363 $ 373 2020 186 225 248 264 2021 219 278 304 2022 277 349 2023 304 Total 1,594 All outstanding liabilities before 2019, net of reinsurance 12 Liabilities for loss and ALAE, net of reinsurance $ 302 The following table shows the average annual percentage payout of incurred losses for the personal auto line of business. Personal auto includes both physical damage and liability losses. A majority of the incurred losses paid after year 2 are the result of liability losses. Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 Average annual percentage payout 65.6% 16.4% 8.2% 5.0% 2.4% Homeowner The following table shows the homeowner incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency: (Dollars in millions, reported claims in thousands) As of December 31, 2023 Incurred losses and ALAE, net of reinsurance for the years ended December 31, Total of incurred Cumulative number of reported claims Accident Unaudited Year 2019 2020 2021 2022 2023 2019 $ 432 $ 421 $ 422 $ 418 $ 418 $ 2 22 2020 497 475 470 471 3 23 2021 495 449 440 4 19 2022 552 505 21 20 2023 742 116 21 Total $ 2,576 Cumulative paid losses and ALAE, net of reinsurance 2019 $ 303 $ 391 $ 407 $ 411 $ 414 2020 326 434 453 464 2021 285 405 424 2022 299 461 2023 468 Total 2,231 All outstanding liabilities before 2019, net of reinsurance 6 Liabilities for loss and ALAE, net of reinsurance $ 351 The following table shows the average annual percentage payout of incurred losses for the homeowner line of business: Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 Average annual percentage payout 65.8% 25.8% 4.1% 1.6% 0.6% Excess and Surplus Lines The following table shows the excess and surplus lines incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency: (Dollars in millions, reported claims in thousands) As of December 31, 2023 Incurred losses and ALAE, net of reinsurance for the years ended December 31, Total of incurred Cumulative number of reported claims Accident Unaudited Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2014 $ 95 $ 82 $ 75 $ 64 $ 60 $ 59 $ 59 $ 58 $ 56 $ 57 $ — 2 2015 96 81 73 67 65 66 65 61 65 — 2 2016 93 87 84 82 90 91 88 89 2 3 2017 104 95 95 94 94 91 94 4 3 2018 116 109 110 108 107 105 6 3 2019 137 135 141 139 142 16 3 2020 172 172 160 152 26 4 2021 217 235 233 66 4 2022 294 280 134 3 2023 328 251 2 Total $ 1,545 Cumulative paid losses and ALAE, net of reinsurance 2014 $ 9 $ 17 $ 27 $ 37 $ 43 $ 48 $ 51 $ 53 $ 55 $ 55 2015 8 19 29 41 51 54 56 58 62 2016 10 21 39 51 62 75 81 83 2017 11 23 41 57 68 77 88 2018 11 26 50 62 75 88 2019 13 34 55 79 102 2020 16 37 56 86 2021 17 45 82 2022 21 46 2023 15 Total 707 All outstanding liabilities before 2014, net of reinsurance 4 Liabilities for loss and ALAE, net of reinsurance $ 842 The following table shows the average annual percentage payout of incurred losses for the excess and surplus lines insurance segment. Excess and surplus lines consist mostly of commercial casualty and commercial property coverages. A majority of the incurred losses paid after year 2 are the result of commercial casualty losses. Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 6 7 8 9 10 Average annual percentage payout 10.1% 13.2% 17.4% 16.2% 13.1% 10.4% 6.3% 2.7% 4.3% 1.1% |
Life Policy And Investment Cont
Life Policy And Investment Contract Reserves | 12 Months Ended |
Dec. 31, 2023 | |
Liability for Future Policy Benefit, before Reinsurance [Abstract] | |
Life Policy And Investment Contract Reserves | Life Policy and Investment Contract Reserves In 2023, we adopted ASU 2018-12 which resulted in changes to the life policy and investment contract reserves and the expansion of required disclosures. The below disclosures represent application of the updated guidance. See Note 1, Summary of Significant Accounting Policies, for further discussion. The following table summarizes our life policy and investment contract reserves and provides a reconciliation of the balances described in the below tables to those in the consolidated balance sheets: (Dollars in millions) At December 31, 2023 2022 Life policy reserves: Term $ 1,066 $ 961 Whole life 434 408 Other 97 94 Subtotal 1,597 1,463 Investment contract reserves: Deferred annuities 656 734 Universal life 585 578 Structured settlements 123 129 Other 107 111 Subtotal 1,471 1,552 Total life policy and investment contract reserves $ 3,068 $ 3,015 The table below shows the ASU 2018-12 adoption impacts to the life policy and investment contract reserves as of January 1, 2021, (transition date), pre-tax: (Dollars in millions) Term Whole life Deferred annuity Universal life Other Total At January 1, 2021 Balance, pre-adoption at December 31, 2020 $ 901 $ 363 $ 761 $ 567 $ 323 $ 2,915 Removal of shadow adjustments — — — — 13 13 Net premiums in excess of gross premiums 14 1 — — — 15 Remeasurement at market value discount rates 372 245 — — — 617 Balance, post-adoption at January 1, 2021 $ 1,287 $ 609 $ 761 $ 567 $ 336 $ 3,560 The table below shows the ASU 2018-12 adoption impacts to the life reinsurance recoverable asset as of January 1, 2021, pre-tax: (Dollars in millions) Term Whole life Deferred annuity Universal life Other Total At January 1, 2021 Balance, pre-adoption at December 31, 2020 $ 113 $ 26 $ — $ — $ 78 $ 217 Remeasurement at market value discount rates 29 18 — — — 47 Other adjustments 20 1 — 2 — 23 Balance, post-adoption at January 1, 2021 $ 162 $ 45 $ — $ 2 $ 78 $ 287 Other above includes structured settlements, other life policy reserves and other investment contract reserves. The removal of shadow adjustments above represents an increase to the life policy and investment contract reserve balance as it is no longer required under ASU 2018-12 for liabilities amortized in accordance with deferred acquisition costs. Shadow adjustments were historically included to present the carrying amount of the liability as if unrealized holding gains and losses had been realized. The net premiums in excess of gross premiums adjustment represents an increase to the liability due to the remeasured net premiums exceeding the present value of future gross premiums on certain cohorts. The remeasured net premiums were calculated as the present value of future benefits and related expenses using updated cash flow assumptions as of the transition date less the carrying amount of the liability prior to transition, using the discount rate assumption that was in place prior to adoption of ASU 2018-12. The remeasurement at market value discount rates adjustment represents the increase to the liability as a result of updating the discount rate assumption for our term and whole life products from the rates used prior to adoption of ASU 2018-12 to market value discount rates that existed at the transition date. As the discount rate assumption decreased significantly from the date the contracts were initially made, this adjustment represents the largest impact on the liability as a result of the initial adoption of ASU 2018-12. The life reinsurance recoverable asset is included in the remeasurement as the assumptions used in estimating the life reinsurance recoverable are consistent with those used in estimating the related liabilities. Other adjustments includes a reclassification from prepaid reinsurance premiums to reinsurance recoverable. The shadow removal and remeasurement at market value discount rates adjustments were recorded as an increase to the life policy and investment contract reserves liability and a decrease to opening AOCI as of the transition date. The net premiums in excess of gross premiums adjustment was recorded as an increase to the life policy and investment contract reserves liability and a decrease to the opening balance of retained earnings as of the transition date. The balances and changes in the term and whole life policy reserves included in life policy and investment contract reserves is as follows: (Dollars in millions) Years ended December 31, 2023 2022 2021 Term Whole life Term Whole life Term Whole life Present value of expected net premiums: Balance, beginning of period $ 1,643 $ 208 $ 1,801 $ 241 $ 1,935 $ 234 Beginning balance at original discount rate 1,708 217 1,503 201 1,503 182 Effect of changes in cash flow assumptions (7) (7) 123 (5) (177) (3) Effect of actual variances from expected experience (20) 3 (1) — 28 2 Adjusted beginning of period balance 1,681 213 1,625 196 1,354 181 Issuances 143 31 194 40 248 39 Interest accrual 72 9 65 8 62 8 Net premiums collected (184) (28) (176) (27) (161) (27) Ending balance at original discount rate 1,712 225 1,708 217 1,503 201 Effect of changes in discount rate assumptions (12) (2) (65) (9) 298 40 Balance, end of period 1,700 223 1,643 208 1,801 241 Present value of expected future policy benefits: Balance, beginning of period 2,584 614 2,993 826 3,222 843 Beginning balance at original discount rate 2,692 607 2,425 577 2,418 545 Effect of changes in cash flow assumptions 2 (10) 140 (7) (181) (4) Effect of actual variances from expected experience (24) 3 8 (1) 31 2 Adjusted beginning of period balance 2,670 600 2,573 569 2,268 543 Issuances 143 30 194 40 248 39 Interest accrual 121 31 112 29 109 29 Benefits paid (169) (33) (187) (31) (200) (34) Ending balance at original discount rate 2,765 628 2,692 607 2,425 577 Effect of changes in discount rate assumptions (14) 29 (108) 7 568 249 Balance, end of period 2,751 657 2,584 614 2,993 826 Net liability for future policy benefits: Present value of expected future policy benefits less expected net premiums 1,051 434 941 406 1,192 585 Impact of flooring at cohort level 15 — 20 2 14 — Net life policy reserves 1,066 434 961 408 1,206 585 Less reinsurance recoverable at original discount rate (97) (23) (99) (25) (107) (27) Less effect of discount rate assumption changes on reinsurance recoverable (10) (5) (9) (5) (19) (15) Net life policy reserves, after reinsurance recoverable $ 959 $ 406 $ 853 $ 378 $ 1,080 $ 543 Weighted-average duration of the net life policy reserves 11 16 11 16 12 18 The total impact of flooring at cohort level in the above table includes the effect of discount rate assumption changes of $2 million, $9 million and $6 million at December 31, 2023, 2022 and 2021, respectively. The following table shows the amount of undiscounted and discounted expected future benefit payments and expected gross premiums for our term and whole life policies: (Dollars in millions) At December 31, 2023 2022 Undiscounted Discounted Undiscounted Discounted Term Expected future benefit payments $ 4,791 $ 2,751 $ 4,655 $ 2,584 Expected future gross premiums 4,374 2,652 4,436 2,582 Whole life Expected future benefit payments $ 1,648 $ 657 $ 1,562 $ 614 Expected future gross premiums 659 409 606 368 The following table shows the amount of revenue and interest recognized in the consolidated statements of income related to our term and whole life policies: (Dollars in millions) Years ended December 31, 2023 2022 2021 Gross premiums Term $ 289 $ 280 $ 270 Whole life 52 47 47 Total $ 341 $ 327 $ 317 Interest accretion Term $ 49 $ 47 $ 47 Whole life 22 21 21 Total $ 71 $ 68 $ 68 Adverse development that resulted in an immediate charge to income due to net premiums exceeding gross premiums was immaterial for the years ended December 31, 2023, 2022 and 2021, respectively. The following table shows the weighted-average interest rate for our term and whole life products: At December 31, 2023 2022 Term Interest accretion rate 5.28 % 5.38 % Current discount rate 4.81 5.24 Whole life Interest accretion rate 5.90 % 5.96 % Current discount rate 5.10 5.35 The discount rate assumption was developed by calculating forward rates from market yield curves of upper-medium grade fixed-income instruments. The following table shows the balances and changes in policyholders' account balances included in investment contract reserves: (Dollars in millions) Years ended December 31, 2023 2022 2021 Deferred annuity Universal life Deferred annuity Universal life Deferred annuity Universal life Balance, beginning of period $ 734 $ 457 $ 763 $ 454 $ 761 $ 451 Premiums received 44 39 29 39 44 39 Policy charges — (39) — (39) — (38) Surrenders and withdrawals (130) (13) (62) (11) (47) (10) Benefit payments (14) (6) (18) (5) (17) (7) Interest credited 22 19 22 19 22 19 Balance, end of period $ 656 $ 457 $ 734 $ 457 $ 763 $ 454 Weighted average crediting rate 3.51 % 4.30 % 3.36 % 4.27 % 2.88 % 4.25 % Net amount at risk $ — $ 3,949 $ — $ 4,082 $ — $ 4,198 Cash surrender value 651 426 729 424 757 419 The net amount at risk above represents the guaranteed benefit amount in excess of the current account balances. The following table shows the balance of account values by range of guaranteed minimum crediting rates, in basis points, and the related range of the difference between rates being credited to policyholders and the respective guaranteed minimums for our deferred annuity and universal life contracts: (Dollars in millions) At guaranteed minimum 1 to 50 basis points above 51-150 basis points above Greater than 150 basis points Total At December 31, 2023 Deferred annuity 1.00-3.00% $ 5 $ 361 $ 16 $ 226 $ 608 3.01-4.00% 48 — — — 48 Total $ 53 $ 361 $ 16 $ 226 $ 656 Universal life 1.00-3.00% $ 55 $ 4 $ 57 $ 4 $ 120 3.01-4.00% 49 5 — — 54 Greater than 4.00% 283 — — — 283 Total $ 387 $ 9 $ 57 $ 4 $ 457 At December 31, 2022 Deferred annuity 1.00-3.00% $ 5 $ 446 $ 18 $ 214 $ 683 3.01-4.00% 51 — — — 51 Total $ 56 $ 446 $ 18 $ 214 $ 734 Universal life 1.00-3.00% $ 61 $ 46 $ 8 $ 2 $ 117 3.01-4.00% 52 — — — 52 Greater than 4.00% 288 — — — 288 Total $ 401 $ 46 $ 8 $ 2 $ 457 The following table shows the balances and changes in the other additional liability related to the no-lapse guarantees contained within our universal life contracts: (Dollars in millions) Years ended December 31, 2023 2022 2021 Balance, beginning of period $ 121 $ 133 $ 116 Balance, beginning of period before shadow reserve adjustments 123 131 113 Effect of changes in cash flow assumptions (6) (1) 4 Effect of actual variances from expected experience — 6 — Adjusted beginning of period balance 117 136 117 Interest accrual 4 4 4 Excess death benefits (6) (18) (4) Attributed assessments 12 12 12 Effect of changes in interest rate assumptions 2 (11) 2 Balance, end of period before shadow reserve adjustments 129 123 131 Shadow reserve adjustments (1) (2) 2 Balance, end of period 128 121 133 Less reinsurance recoverable, end of period 6 5 3 Net other additional liability, after reinsurance recoverable $ 134 $ 126 $ 136 Weighted-average duration of the other additional liability 32 34 35 The following table shows balances and changes in separate account balances during the period: (Dollars in millions) Years ended December 31, 2023 2022 2021 Balance, beginning of period $ 892 $ 959 $ 952 Interest credited before policy charges 42 38 37 Change in unrealized gains and losses impacting separate account liabilities — (85) (22) Benefit payments (10) (15) (6) Other 1 (5) (2) Balance, end of period $ 925 $ 892 $ 959 Cash surrender value $ 917 $ 890 $ 870 |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Costs [Abstract] | |
Deferred Policy 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. For property casualty, we evaluate the costs for recoverability. No premium deficiencies were recorded in the consolidated statements of income in 2023, 2022 and 2021, 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. The adoption of ASU 2018-12 on January 1, 2023, resulted in a simplified amortization of life deferred acquisition costs and the removal of shadow deferred acquisition costs. See Note 1, Summary of Significant Accounting Policies, for further discussion. The table below shows the deferred policy acquisition costs and asset reconciliation: (Dollars in millions) Years ended December 31, 2023 2022 2021 Property casualty: Deferred policy acquisition costs asset, January 1 $ 682 $ 602 $ 542 Capitalized deferred policy acquisition costs 1,488 1,383 1,211 Amortized deferred policy acquisition costs (1,421) (1,303) (1,151) Deferred policy acquisition costs asset, December 31 $ 749 $ 682 $ 602 Life: Deferred policy acquisition costs asset, January 1 $ 331 $ 314 $ 296 Capitalized deferred policy acquisition costs 42 44 43 Amortized deferred policy acquisition costs (29) (27) (25) Deferred policy acquisition costs asset, December 31 $ 344 $ 331 $ 314 Consolidated: Deferred policy acquisition costs asset, January 1 $ 1,013 $ 916 $ 838 Capitalized deferred policy acquisition costs 1,530 1,427 1,254 Amortized deferred policy acquisition costs (1,450) (1,330) (1,176) Deferred policy acquisition costs asset, December 31 $ 1,093 $ 1,013 $ 916 The removal of shadow deferred policy acquisition costs as a result of the adoption of ASU 2018-12 resulted in a $33 million increase, across all products, from $263 million pre-adoption at December 31, 2020, to $296 million post-adoption at January 1, 2021. The table below shows the life deferred policy acquisition costs asset by product: (Dollars in millions) Year ended December 31, 2023 Term Whole life Deferred annuity Universal life Total Balance, beginning of period $ 228 $ 43 $ 7 $ 53 $ 331 Capitalized deferred policy acquisition costs 30 8 2 2 42 Amortized deferred policy acquisition costs (22) (3) (1) (3) (29) Balance, end of period $ 236 $ 48 $ 8 $ 52 $ 344 Year ended December 31, 2022 Balance, beginning of period $ 215 $ 38 $ 7 $ 54 $ 314 Capitalized deferred policy acquisition costs 34 7 1 2 44 Amortized deferred policy acquisition costs (21) (2) (1) (3) (27) Balance, end of period $ 228 $ 43 $ 7 $ 53 $ 331 Year ended December 31, 2021 Balance, beginning of period $ 201 $ 35 $ 6 $ 54 $ 296 Capitalized deferred policy acquisition costs 35 5 1 2 43 Amortized deferred policy acquisition costs (21) (2) — (2) (25) Balance, end of period $ 215 $ 38 $ 7 $ 54 $ 314 |
Note Payable
Note Payable | 12 Months Ended |
Dec. 31, 2023 | |
Notes Payable, Current [Abstract] | |
Note Payable | Note Payable We have one unsecured revolving credit facility through multiple commercial banks that expires on February 4, 2026. The borrowing capacity is $300 million with an additional $300 million accordion feature. Terms and conditions of the agreement include a debt-to-total capital maximum of 35%. We had no compensating balance requirements on short-term debt for either 2023 or 2022. The line of credit had $25 million and $50 million drawn at December 31, 2023 and 2022, respectively. The interest rate charged on our borrowings on this credit agreement ranged from 5.27% to 6.33% during 2023 and ranged from 0.99% to 5.00% during 2022. In addition, we have letters of credit related to our Cincinnati Re and Cincinnati Global operations with no amounts drawn at December 31, 2023 and 2022. |
Long-Term Debt And Lease Obliga
Long-Term Debt And Lease Obligation | 12 Months Ended |
Dec. 31, 2023 | |
Long-Term Debt and Lease Obligation [Abstract] | |
Long-Term Debt and Lease Obligation | Long-Term Debt and Lease Obligations This table summarizes the principal amounts of our long-term debt excluding unamortized discounts, none of which are encumbered by rating triggers: (Dollars in millions) Book value Principal amount Interest rate Year of At December 31, At December 31, 2023 2022 2023 2022 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 372 371 374 374 Total $ 790 $ 789 $ 793 $ 793 The finance lease term for equipment and autos is three and $52 million in 2023 and 2022, respectively. Below are the lease obligations we expect to pay through 2029 and thereafter including $6 million of interest for finance and operating leases: (Dollars in millions) Years ended December 31, 2024 2025 2026 2027 2028 2029 and thereafter Finance lease obligations $ 16 $ 12 $ 9 $ 7 $ 6 $ 3 Operating lease obligations 3 3 3 2 1 — Total lease obligations $ 19 $ 15 $ 12 $ 9 $ 7 $ 3 The following table provides lease cost and other information: (Dollars in millions) Years ended December 31, 2023 2022 2021 Lease cost: Finance lease cost $ 14 $ 14 $ 15 Operating lease cost 3 5 4 Total lease cost $ 17 $ 19 $ 19 Other information finance leases: Finance cash outflows $ 16 $ 15 $ 15 Weighted average discount rate 4.35 % 3.20 % 2.46 % Weighted average remaining lease term in years 3.89 3.49 3.45 Other information operating leases: Operating cash outflows $ 3 $ 4 $ 4 Weighted average discount rate 4.66 % 3.44 % 2.86 % Weighted average remaining lease term in years 4.30 4.53 4.37 |
Shareholders' Equity And Divide
Shareholders' Equity And Dividend Restrictions | 12 Months Ended |
Dec. 31, 2023 | |
Shareholders Equity And Dividend Restrictions [Abstract] | |
Shareholders' Equity And Dividend Restrictions | Shareholders’ Equity and Dividend Restrictions Declared cash dividends per share were $3.00 , $2.76 and $2.52 for the years ended December 31, 2023, 2022 and 2021, respectively. Our lead insurance subsidiary, The Cincinnati Insurance Company, paid dividends to the parent company of $526 million, $729 million and $583 million in 2023, 2022 and 2021, respectively. State regulatory requirements restrict the dividends insurance subsidiaries can pay. Generally, the most our lead insurance subsidiary can pay without prior regulatory approval is the greater of 10% of statutory capital and surplus or 100% of statutory net income for the prior calendar year. Dividends exceeding these limitations may be paid only with approval of the insurance department of the domiciliary state. During 2024, the total that our lead insurance subsidiary may pay in dividends is approximately $729 million. Dividend payments from Cincinnati Global to the parent company are subject to regulation by U.K. law. Cincinnati Global paid no dividends to the parent company in 2023, 2022 or 2021. Accumulated Other Comprehensive Income The adoption of ASU 2018-12 on January 1, 2023 resulted in restatement of certain amounts below. See Note 1, Summary of Significant Accounting Policies, for further discussion. The table below shows beginning and end of year accumulated other comprehensive income (AOCI) for investments, pension obligations, life policy reserves, reinsurance recoverable and other. The changes from the beginning of year to the end of year are the result of changes to other comprehensive income or loss (OCI). (Dollars in millions) 2023 2022 2021 Before Income Net Before Income Net Before Income Net Investments: AOCI, January 1 $ (847) $ (182) $ (665) $ 792 $ 165 $ 627 $ 1,026 $ 215 $ 811 OCI before investment gains and losses, net, recognized in net income 255 55 200 (1,642) (347) (1,295) (204) (44) (160) Investment gains and losses, net, recognized in net income 22 4 18 3 — 3 (30) (6) (24) OCI 277 59 218 (1,639) (347) (1,292) (234) (50) (184) AOCI, December 31 $ (570) $ (123) $ (447) $ (847) $ (182) $ (665) $ 792 $ 165 $ 627 Pension obligations: AOCI, January 1 $ 36 $ 9 $ 27 $ 27 $ 7 $ 20 $ (41) $ (7) $ (34) OCI excluding amortization recognized in net income 2 1 1 12 2 10 62 12 50 Amortization recognized in net income (8) (2) (6) (3) — (3) 6 2 4 OCI (6) (1) (5) 9 2 7 68 14 54 AOCI, December 31 $ 30 $ 8 $ 22 $ 36 $ 9 $ 27 $ 27 $ 7 $ 20 Life policy reserves, reinsurance recoverable and other: AOCI, January 1 $ 29 $ 5 $ 24 $ (444) $ (94) $ (350) $ (10) $ (2) $ (8) Cumulative effect of change in accounting for long duration insurance contracts — — — — — — (550) (116) (434) Adjusted AOCI, January 1 29 5 24 (444) (94) (350) (560) (118) (442) OCI before investment gains and losses, net, recognized in net income (42) (8) (34) 473 99 374 116 24 92 Investment gains and losses, net, recognized in net income — — — — — — — — — OCI (42) (8) (34) 473 99 374 116 24 92 AOCI, December 31 $ (13) $ (3) $ (10) $ 29 $ 5 $ 24 $ (444) $ (94) $ (350) Summary of AOCI: AOCI, January 1 $ (782) $ (168) $ (614) $ 375 $ 78 $ 297 $ 975 $ 206 $ 769 Cumulative effect of change in accounting for long duration insurance contracts — — — — — — (550) (116) (434) Adjusted AOCI, January 1 (782) (168) (614) 375 78 297 425 90 335 Investments OCI 277 59 218 (1,639) (347) (1,292) (234) (50) (184) Pension obligations OCI (6) (1) (5) 9 2 7 68 14 54 Life policy reserves, reinsurance recoverable and other OCI (42) (8) (34) 473 99 374 116 24 92 Total OCI 229 50 179 (1,157) (246) (911) (50) (12) (38) AOCI, December 31 $ (553) $ (118) $ (435) $ (782) $ (168) $ (614) $ 375 $ 78 $ 297 Investment gains and losses, net, and other investment gains and losses, net, are recorded in the investment gains and losses, net, line item in the consolidated statements of income. Amortization on pension obligations is recorded in the insurance losses and contract holders' benefits and underwriting, acquisition and insurance expenses line items in the consolidated statements of income. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2023 | |
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 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) Years ended December 31, 2023 2022 2021 Direct written premiums $ 7,784 $ 7,002 $ 6,229 Assumed written premiums 597 619 515 Ceded written premiums (335) (314) (265) Net written premiums $ 8,046 $ 7,307 $ 6,479 Direct earned premiums $ 7,407 $ 6,677 $ 5,996 Assumed earned premiums 569 561 443 Ceded earned premiums (331) (314) (255) Earned premiums $ 7,645 $ 6,924 $ 6,184 Direct incurred loss and loss expenses $ 4,843 $ 4,495 $ 3,352 Assumed incurred loss and loss expenses 280 396 366 Ceded incurred loss and loss expenses (165) (175) (122) Incurred loss and loss expenses $ 4,958 $ 4,716 $ 3,596 Our life insurance company purchases reinsurance for protection of a portion of 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) Years ended December 31, 2023 2022 2021 Direct earned premiums $ 394 $ 379 $ 370 Ceded earned premiums (81) (78) (76) Earned premiums $ 313 $ 301 $ 294 Direct contract holders' benefits incurred $ 391 $ 394 $ 380 Ceded contract holders' benefits incurred (75) (91) (67) Contract holders' benefits incurred $ 316 $ 303 $ 313 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 | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The significant components of deferred tax assets and liabilities included in the consolidated balance sheets at December 31 were as follows: (Dollars in millions) At December 31, 2023 2022 Deferred tax assets: Unearned premiums $ 165 $ 148 Loss and loss expense reserves 120 106 Net operating loss on international earnings 26 28 Deferred international earnings — 16 Other 70 55 Deferred tax assets before valuation allowance 381 353 Valuation allowance for international operations — 31 Deferred tax assets net of valuation allowance 381 322 Deferred tax liabilities: Investment gains and other, net 1,290 992 Deferred acquisition costs 184 171 Life policy reserves 104 121 Deferred international earnings 21 — Investments 35 31 Other 71 61 Total gross deferred tax liabilities 1,705 1,376 Net deferred income tax liability $ 1,324 $ 1,054 Deferred tax assets and liabilities reflect temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amount recognized for tax purposes. 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 of taxable income in the carryback and carryforward periods as permitted by law, we believe 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 at December 31, 2023 and 2022, for our U.S. domestic operations. For financial reporting purposes, income (loss) before income taxes includes the following components: (Dollars in millions) For the years ended December 31, 2023 2022 2021 United States $ 2,195 $ (719) $ 3,672 International 81 25 26 Total income (loss) before income taxes $ 2,276 $ (694) $ 3,698 The provision (benefit) for income taxes consists of: (Dollars in millions) For the years ended December 31, 2023 2022 2021 Provision (benefit) for income taxes: Current – United States federal $ 209 $ 148 $ 248 International 1 — (1) Total current 210 148 247 Deferred – United States federal 216 (355) 483 International 7 — — Total deferred 223 (355) 483 Total provision (benefit) for income taxes $ 433 $ (207) $ 730 The differences between the 21% statutory federal income tax rate and our effective income tax rate were as follows: (Dollars in millions) Years ended December 31, 2023 2022 2021 Tax at statutory rate: $ 478 21.0 % $ (146) 21.0 % $ 777 21.0 % Increase (decrease) resulting from: Tax-exempt income from municipal bonds (21) (0.9) (20) 2.9 (20) (0.5) Dividend received exclusion (22) (1.0) (21) 3.0 (20) (0.5) Release of unrecognized tax benefit — — (34) 4.9 — — Other (2) (0.1) 14 (2.0) (7) (0.3) Provision (benefit) for income taxes $ 433 19.0 % $ (207) 29.8 % $ 730 19.7 % The provision (benefit) for federal income taxes is based upon the filing of a consolidated income tax return for the company and its domestic subsidiaries within the United States. We had no operating or capital loss carryforwards in the United States at December 31, 2023 and 2022. As more fully discussed below, Cincinnati Global, has operating loss carryforwards in the United Kingdom. Enactment of the Inflation Reduction Act of 2022 The Inflation Reduction Act of 2022 (Tax Act) was enacted on August 16, 2022. Along with other changes, the Tax Act created a new corporate alternative minimum tax (CAMT) for certain corporations based on 15% of adjusted financial statement income for the taxable year. The effective date of this enacted legislation was January 1, 2023. Even though we are an applicable corporation for the purposes of the CAMT, we do not expect the enactment of the Tax Act to have a material impact on our financial statements. Unrecognized Tax Benefits During 2022, we received favorable guidance from the Internal Revenue Service (IRS) supporting our tax position related to our unrecognized tax benefit set up in 2018. As a result of this guidance, we released our $34 million gross unrecognized tax benefit liability at December 31, 2022. The $34 million release was recognized as an additional income tax benefit and is shown separately in our effective income tax rate reconciliation. We had no unrecognized tax benefit at December 31, 2023. We are currently under audit for tax years 2021 and 2020. The statute of limitations for federal tax purposes has closed for tax years ended December 31, 2019 and earlier. In addition to our IRS filings, we file income tax returns with immaterial amounts in various state jurisdictions and record these amounts in our provision for income taxes for both current and deferred taxes. The statute of limitations for state income tax purposes has closed for tax years ended December 31, 2020 and earlier. Cincinnati Global operates in the United Kingdom and as such, is subject to tax in that jurisdiction. The statute of limitations for tax return review by His Majesty’s Revenue and Customs (HMRC) has closed for tax returns with a submission deadline ended December 31, 2021, and earlier. There are currently no tax returns under review by HMRC. Income taxes paid in our consolidated statements of cash flows are shown net of refunds received. We received a $2 million refund in 2023, and no refunds in 2022 or 2021. Cincinnati Global 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 of taxable income in the carryback and carryforward periods as permitted by law, we believe it is more likely than not that all of the deferred tax assets of Cincinnati Global will be realized. As a result, we had no valuation allowance at December 31, 2023. We had a valuation allowance of $31 million and $53 million at December 31, 2022, and 2021, respectively. The following is a tabular reconciliation of the total amounts of our Cincinnati Global valuation allowance: (Dollars in millions) Years ended December 31, 2023 2022 2021 Valuation allowance, January 1 $ 31 $ 53 $ 56 Current year operations (31) (22) (3) Valuation allowance, December 31 $ — $ 31 $ 53 Cincinnati Global had no operating loss carryforwards in the United States and $100 million in the United Kingdom at December 31, 2023, and $5 million in the United States and $109 million in the United Kingdom at December 31, 2022. These Cincinnati Global losses can only be utilized within the Cincinnati Global group in both the United States and in the United Kingdom and cannot offset the income of our domestic operations in the United States. |
Net Income Per Common Share
Net Income Per Common Share | 12 Months Ended |
Dec. 31, 2023 | |
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) Years ended December 31, 2023 2022 2021 Numerator: Net income (loss)—basic and diluted $ 1,843 $ (487) $ 2,968 Denominator: Basic weighted-average common shares outstanding 157.0 158.8 161.0 Effect of share-based awards: Stock options 0.7 — 1.1 Nonvested shares 0.4 — 0.6 Diluted weighted-average shares 158.1 158.8 162.7 Earnings (loss) per share: Basic $ 11.74 $ (3.06) $ 18.43 Diluted 11.66 (3.06) 18.24 Number of anti-dilutive share-based awards 1.3 2.2 0.8 The sources of dilution of our common shares are certain equity-based awards as discussed in Note 17, Share-Based Associate Compensation Plans. The above table includes the number of anti-dilutive share-based awards at year-end 2023, 2022 and 2021. In accordance with Accounting Standards Codification 260, Earnings per Share , the assumed exercise of share-based awards were excluded from the computation of diluted loss per share for the year-ended 2022, because their exercise would have anti-dilutive effects. |
Employee Retirement Benefits
Employee Retirement Benefits | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Retirement Benefits | Employee Retirement Benefits We sponsor a qualified defined benefit pension plan that we closed entry into for new associates as of June 30, 2008, and only participants 40 years of age or older as of August 31, 2008, could elect to continue to participate. During 2008, we changed the form of retirement benefit we offer some associates to a company match on contributions to a 401(k) plan as further explained below. For participants remaining in the pension plan, we continue to fund future benefit obligations. Benefits for the defined benefit pension plan are based on years of credited service and compensation level. Contributions are based on the prescribed method defined in the Pension Protection Act. Our net periodic benefit cost is based on certain actuarial assumptions and also is composed of several components that are determined using the projected unit credit actuarial cost method. The qualified plan has been amended to allow for distribution of vested balances to terminated participants. We sponsor a defined contribution plan (401(k) plan) for eligible associates with matching company contributions totaling $26 million, $24 million and $22 million during the years 2023, 2022 and 2021, respectively. Associates who are not accruing benefits under the pension plan are eligible to receive the company match of up to 6% of cash compensation. Participants vest in the company match for the 401(k) plan after three years of eligible service. We maintain a supplemental executive retirement plan (SERP) with a benefit obligation of $11 million at year-end 2023 and $8 million at year-end 2022, which is included in the projected benefit obligation. The company also makes available to a select group of associates the CFC Top Hat Savings Plan, a nonqualified deferred compensation plan, which had a fair value of $67 million and $57 million at December 31, 2023 and 2022, respectively. Company matching contributions to the CFC Top Hat Savings Plan totaled approximately $1 million for the years 2023, 2022 and 2021, respectively. Defined Benefit Pension Plan Assumptions We evaluate our pension plan assumptions annually and update them as necessary. This is a summary of the weighted-average assumptions used to determine our benefit obligations at December 31 for the plans: Qualified Pension Plan SERP 2023 2022 2023 2022 Discount rate 5.04 % 5.34 % 5.11 % 5.42 % Rate of compensation increase 4.00 4.50 4.00 4.50 To determine the discount rate for each plan, a theoretical settlement portfolio of high-quality rated corporate bonds was chosen to provide payments approximately matching the plan’s projected benefit payments. A single interest rate for each plan was determined resulting in a discounted value of the plan's benefit payments that equates to the market value of the selected bonds. The discount rate is reflective of current market interest rate conditions and our plan's liability characteristics. Based on this analysis, we decreased the rate from the prior year by 0.30 percentage points for the qualified pension plan and by 0.31 percentage points for the SERP. Compensation increase assumptions reflect anticipated rates of inflation, real return on wage growth and merit and promotional increases. The mortality assumption is updated annually to reflect the updated mortality scales. The Pri-2012 tables with Scale MP-2021 was used for the years 2023, 2022 and 2021. This is a summary of the weighted-average assumptions used to determine our net periodic benefit cost for the plans: Qualified Pension Plan SERP 2023 2022 2021 2023 2022 2021 Discount rate 5.34 % 2.97 % 2.68 % 5.42 % 2.90 % 2.52 % Expected return on plan assets 7.00 7.00 7.00 n/a n/a n/a Rate of compensation increase 4.50 2.25-3.25 2.25-3.25 4.50 2.25-3.25 2.25-3.25 The discount rate was increased by 2.37 percentage points for the qualified pension plan and 2.52 percentage points for the SERP due to market interest rate conditions at the beginning of 2023. The discount rate assumptions for our benefit obligation generally track with high-quality rated corporate bond yields chosen in our theoretical settlement portfolio, and yearly adjustments reflect any changes to those bond yields. We believe the expected return on plan assets is representative of the expected long-term rate of return on these assets, which is consistent with 2023 expectations of interest rates and based partially on the fact that the plan’s common stock holdings pay dividends. We review historical actual return on plan assets when determining our expected long-term rate of return. Total portfolio return for 2023 was 11.8% and for 2022 was negative 8.9%. Our compensation increase assumptions in 2023 reflect anticipated rates of inflation, real return on wage growth and merit and promotional increases. Benefit obligation activity using an actuarial measurement date for our qualified pension plan and SERP at December 31 follows: (Dollars in millions) At December 31, 2023 2022 Change in projected benefit obligation: Benefit obligation, January 1 $ 282 $ 362 Service cost 6 9 Interest cost 13 10 Actuarial loss (gain) 10 (70) Benefits paid (48) (29) Projected benefit obligation, December 31 $ 263 $ 282 Change in plan assets: Fair value of plan assets, January 1 $ 332 $ 397 Actual return on plan assets 33 (36) Benefits paid (48) (29) Fair value of plan assets, December 31 $ 317 $ 332 Funded status, December 31 $ 54 $ 50 Accumulated benefit obligation $ 247 $ 264 Our funded status for 2023 compared to 2022 improved primarily due to higher year over year return on plan assets, offset by decreases in the actuarial gain resulting from decreases in discount rates. A reconciliation follows of the funded status for our qualified plan and SERP at the end of the measurement period to the amounts recognized in the consolidated balance sheets at December 31: (Dollars in millions) At December 31, 2023 2022 Pension amounts recognized in the consolidated balance sheets: Other assets $ 54 $ 50 Total $ 54 $ 50 Pension amounts recognized in accumulated other comprehensive income: Net actuarial gain $ (31) $ (36) Prior service cost 1 — Total $ (30) $ (36) Below are the components of our net periodic benefit cost, as well as other changes in plan assets and benefit obligations recognized in other comprehensive income for our qualified plan and SERP at December 31: (Dollars in millions) Years ended December 31, 2023 2022 2021 Net periodic benefit cost: Service cost $ 6 $ 9 $ 10 Non-service costs (benefit): Interest cost 13 10 10 Expected return on plan assets (21) (22) (21) Amortization of actuarial (gain) loss and prior service cost (2) — 6 Other (6) (3) 1 Net periodic benefit cost $ (10) $ (6) $ 6 Other changes in plan assets and benefit obligations recognized in other Current year actuarial gain $ (2) $ (12) $ (62) Amortization and recognition of actuarial gain (loss) 8 3 (7) Current year prior service cost — — 1 Total recognized in other comprehensive (income) loss $ 6 $ (9) $ (68) Total recognized in net periodic benefit cost and other comprehensive $ (4) $ (15) $ (62) The 2023 change in the amount recognized in other comprehensive income from 2022 is largely due to higher year over year return on plan assets, offset by decreases in actuarial gain resulting from decreases in discount rates. Service costs and non-service costs (benefit) are allocated in the same proportion primarily to underwriting, acquisition and insurance expenses line item with the remainder allocated to the insurance losses and contract holders' benefits line item on the consolidated statements of income for 2023, 2022 and 2021. Defined Benefit Pension Plan Assets The pension plan assets are managed to maximize total return over the long term while providing sufficient liquidity and current return to satisfy the cash flow requirements of the plan. The plan’s day-to-day investment decisions are managed by our internal investment department; however, overall investment strategies are discussed with our employee benefits committee. Our investment strategy is to weight our portfolio towards large-cap, high-quality, dividend-growing equities that we have historically favored. As our plan matures and interest rates normalize, we expect a greater allocation to fixed-income securities to better align asset and liability market risks. Our fixed-maturity bond portfolio is investment grade. The plan does not engage in derivative transactions. Excluding cash, during 2023 we held approximately 90% of our pension portfolio in domestic common equity investments. The remainder of the portfolio consisted of 7% in United States government fixed-maturity investments, 2% in states, municipalities and taxable political subdivisions fixed-maturity investments, and 1% in domestic corporate fixed-maturity investments. Our common equity portfolio consisted of 29% in the information technology sector, 19% in the financial sector, 16% in the industrials sector, and 13% in the healthcare sector, at year-end 2023. No additional sectors accounted for 10% or more of our common equity portfolio balance at year-end 2023. Investments in securities are valued based on the fair value hierarchy outlined in Note 3, Fair Value Measurements. The pension plan did not have any liabilities carried at fair value during the years ended December 31, 2023 and 2022. The following table shows the fair value hierarchy for those assets measured at fair value on a recurring basis at December 31, 2023 and 2022. Excluded from the table below is cash on hand of $16 million and $43 million at December 31, 2023 and 2022, respectively. (Dollars in millions) Level 1 Level 2 Level 3 Total At December 31, 2023 Fixed maturities, available for sale: United States government $ 22 $ — $ — $ 22 Corporate — 4 — 4 States, municipalities and political subdivisions — 6 — 6 Total fixed maturities, available for sale 22 10 — 32 Common equities 269 — — 269 Total $ 291 $ 10 $ — $ 301 At December 31, 2022 Fixed maturities, available for sale: United States government $ 31 $ — $ — $ 31 Corporate — 7 — 7 States, municipalities and political subdivisions — 6 — 6 Total fixed maturities, available for sale 31 13 — 44 Common equities 245 — — 245 Total $ 276 $ 13 $ — $ 289 Our pension plan assets included 100,610 shares of the company’s common stock, which had a fair value of $10 million at December 31, 2023 and 2022, respectively. The defined benefit pension plan did not purchase any of our common stock during 2023 or 2022. The defined benefit pension plan did not sell any of our common stock during 2023 and sold 101,727 shares of our common stock during 2022. The company paid less than $1 million in both 2023 and 2022 in cash dividends on our common stock to the pension plan. We estimate $7 million of benefit payments from the SERP during 2024. We expect to make the following benefit payments for our qualified plan and SERP, reflecting expected future service: (Dollars in millions) Years ended December 31, 2024 2025 2026 2027 2028 2029 - 2033 Expected future benefit payments $ 37 $ 27 $ 30 $ 30 $ 31 $ 128 |
Statutory Accounting Informatio
Statutory Accounting Information | 12 Months Ended |
Dec. 31, 2023 | |
Staturory Accounting Information [Abstract] | |
Statutory Accounting Information | Statutory Accounting Information Insurance companies’ statutory financial statements are presented on the basis of accounting practices prescribed or permitted by applicable state insurance departments of domicile. Insurance companies use statutory accounting practices (SAP) as recognized by various states. We have adopted the National Association of Insurance Commissioners’ (NAIC) Accounting Practices and Procedures manual, version effective January 1, 2001, and updates through the current year as a component of prescribed or permitted practices by laws of the state of domicile. The primary differences between SAP and GAAP include the valuation of investment gains and losses, expensing of policy acquisition costs, actuarial assumptions for life insurance reserves and deferred income taxes based on differences in statutory and taxable income. Statutory net income and capital and surplus are determined in accordance with SAP prescribed or permitted by insurance regulatory authorities for five legal entities, our lead insurance subsidiary and its four insurance subsidiaries. Statutory capital and surplus for our insurance subsidiary, The Cincinnati Insurance Company, includes capital and surplus of its four insurance subsidiaries. All capital and surplus amounts exceed statutory risk-based capital requirements. The statutory net income and statutory capital and surplus are presented below: (Dollars in millions) Net income Capital and surplus Years ended December 31, At December 31, 2023 2022 2021 2023 2022 The Cincinnati Insurance Company $ 607 $ 520 $ 929 $ 7,294 $ 6,512 The Cincinnati Casualty Company 13 14 15 517 495 The Cincinnati Indemnity Company 3 4 5 130 126 The Cincinnati Specialty Underwriters Insurance Company 76 61 47 611 542 The Cincinnati Life Insurance Company 90 64 41 414 326 |
Transactions With Affiliated Pa
Transactions With Affiliated Parties | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Transactions With Affiliated Parties | Transactions With Affiliated PartiesWe paid certain officers and directors, or insurance agencies of which they are shareholders, commissions of $9 million, $9 million and $8 million on premium volume of $51 million, $47 million and $47 million for 2023, 2022 and 2021, respectively. |
Commitments And Contingent Liab
Commitments And Contingent Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
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 continues to vigorously defend them. 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 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. Most of these lawsuits have been dismissed, both by courts and by plaintiffs, but some have been appealed and a few others remain pending in trial courts. Appellate decisions issued to date generally have been favorable for the insurance industry, and the company has received numerous favorable rulings on appeal with no adverse appellate rulings to date. Some cases remain to be decided and in some jurisdictions, 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 state or national classes. Such proceedings have alleged, for example, improper depreciation of labor costs in repair estimates. 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 covered 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. |
Share-Based Associate Compensat
Share-Based Associate Compensation Plans | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-Based Associate Compensation Plans | Share-Based Associate Compensation Plans Three equity compensation plans currently permit us to grant various types of equity awards. We currently grant incentive stock options, nonqualified stock options, service-based restricted stock units and performance-based restricted stock units to associates, including some with market-based performance objectives under our shareholder-approved plans. We also have a Holiday Stock Plan that permits annual awards of one share of common stock to each full-time associate for each full calendar year of service up to a maximum of 10 shares. One of our equity compensation plans permits us to grant stock to our outside directors as a component of their annual compensation. We used treasury shares for share-based compensation award issues or exercises during 2023 and 2022. Share-based compensation cost after tax was $32 million, $29 million and $26 million for the years ended December 31, 2023, 2022 and 2021, respectively. The related income tax benefit recognized was $8 million,$7 million and $6 million for the years ended December 31, 2023, 2022 and 2021, respectively. Options exercised during the years ended December 31, 2023, 2022 and 2021, had intrinsic value of $14 million, $21 million and $24 million, respectively. Intrinsic value is the market price less the exercise price. Options vested during the year ended December 31, 2023 had no intrinsic value because the weighted average exercise price was greater than the market price on the reporting date. Options vested during the years ended December 31, 2022 and 2021, had total intrinsic value of $2 million and $15 million, respectively. As of December 31, 2023, we had $43 million of unrecognized total compensation cost related to nonvested stock options and restricted stock unit awards. That cost will be recognized over a weighted-average period of 1.8 years. Stock Options Stock options are granted to associates at an exercise price equal to the fair value as determined by the average high and low sales price reported on the Nasdaq Global Select Market for the grant date and are exercisable over 10-year periods. The stock options generally vest ratably over a three • Weighted-average expected term is based on historical experience of similar awards with consideration for current exercise trends. • Expected volatility is based on our stock price over a historical period that approximates the expected term. • Dividend yield is determined by dividing the annualized per share dividend by the stock price on the date of grant. • Risk-free rates are the implied yield currently available on zero-coupon U.S. Treasury issues with a remaining term approximating the expected term. The following weighted average assumptions were used in determining fair value for option grants issued: 2023 2022 2021 Weighted-average expected term 8-9 years 7-9 years 7-9 years Expected volatility 28.25-29.61% 26.34-28.87% 25.56-27.81% Dividend yield 2.39% 2.23% 2.62% Risk-free rates 3.98-3.99% 1.90-1.92% 0.97-1.26% Weighted-average fair value of options granted during the period $38.22 $30.34 $19.64 Below is a summary of option information for the year 2023: (Dollars in millions, except exercise price. Shares in thousands) Shares Weighted- Aggregate Weighted-average Outstanding option shares at January 1, 2023 3,608 $ 86.21 Granted 384 125.57 Exercised (280) 59.98 Forfeited or expired (65) 86.73 Outstanding option shares at December 31, 2023 3,647 92.36 $ 62 5.43 years Options exercisable at end of period 2,855 $ 84.68 $ 61 4.59 years Cash received from the exercise of options was $9 million, $10 million and $13 million for the years ended December 31, 2023, 2022 and 2021, respectively. We acquired 72,549 , 80,538 and 77,947 shares totaling $8 million, $10 million and $8 million, respectively, from associates in consideration for option exercises during 2023, 2022 and 2021. The weighted-average remaining contractual life for options expected to vest as of December 31, 2023, was 8.45 years. Under all active shareholder approved plans, a total of 10.3 million shares were authorized to be granted. At December 31, 2023, 3.6 million shares remained available for future issuance under the plans. During 2023, we granted 11,524 shares of common stock to our directors for 2022 board service fees. Restricted Stock Units Service-based restricted stock units granted to associates are valued at fair value of the shares on the date of grant less the present value of the dividends that holders of restricted stock units do not receive on the shares underlying the restricted stock units during the vesting period. Service-based restricted stock units generally cliff vest three years after the date of grant. We also grant restricted stock units which vest on a three We have performance-based awards that vest on the first day of March after a three three three Three For the three-year performance period ended December 31, 2023, our total shareholder return exceeded two of our eight peers. We expect no payout of these shares to occur in March of 2024. During 2023, no shares of performance-based restricted stock units were issued for the three-year performance period ended December 31, 2022, as our total shareholder return exceeded one of eight peers in our 2020 peer group. We issued 52,335 shares of performance-based restricted stock units during 2022 at the target-level performance hurdle for the three These performance-based awards are valued using a Monte-Carlo valuation on the date of grant, which uses a risk-neutral framework to model future stock price movements based upon the risk-free rate of return, the volatility of each peer and the pairwise correlations of each peer being modeled. Compensation cost is recognized regardless of whether the market-based performance objective has been satisfied. We make assumptions to develop the Monte-Carlo model as follows: • Correlation coefficients are based upon the stock price data used to calculate the historical volatilities. The correlation coefficients are used to model the way the price of each entity's stock tends to move in relation to each other. • Expected volatility is based on each company's historical volatility using daily stock price observations with the period commensurate with the performance measurement period. • Dividend yield assumption is based on our current expected annual cash dividend and the valuation date stock price. • Risk-free rates are equal to the yield, as of the measurement date, of the zero-coupon U.S. Treasury bill that is commensurate with the performance measurement period. The following assumptions were used in determining fair value for performance-based grants issued: 2023 2022 2021 Expected term 2.86 years 2.86 years 2.85 years Expected volatility 25.98-47.73% 30.09-49.28% 29.50-47.26% Dividend yield 2.37% 2.19% 2.62% Risk-free rates 4.32% 1.64% 0.20% Below is a summary of service-based and performance-based share information, assuming a target payout for performance-based shares, for the year 2023: (Shares in thousands) Service-based Weighted- Performance-based Weighted- Nonvested at January 1, 2023 523 $ 102.26 155 $ 124.69 Granted 174 117.21 70 169.50 Vested (179) 104.61 — — Forfeited or canceled (22) 105.73 (38) 111.77 Nonvested at December 31, 2023 496 106.52 187 144.05 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We operate primarily in two industries, property casualty insurance and life insurance. Our CODM 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. Revenues come primarily from unaffiliated customers: • All four insurance segments record revenues from insurance premiums earned. • Fee revenues for the commercial, personal and excess and surplus insurance segments primarily represent installment fees. Fee revenues for the life insurance segment represent separate account investment management fees. • Our investments’ revenues consist of pretax net investment income and investment gains and losses. • Other revenues are primarily finance income and earned premiums of Cincinnati Re and Cincinnati Global. Income or loss before income taxes for each segment is reported based on the nature of that business area’s operations: • Income before income taxes for the insurance segments is defined as underwriting profit or loss. ◦ For commercial lines, personal lines and excess and surplus lines insurance segments, we calculate underwriting profit or loss as premiums earned and fee revenue minus loss and loss expenses and underwriting expenses incurred. ◦ For the life insurance segment, we calculate underwriting profit or loss as premiums earned and fee revenue, minus contract holders’ benefits and expenses incurred, plus investment interest credited to contract holders. • Income before income taxes for the investments segment is net investment income plus investment gains and losses for investments of the entire company, minus investment interest credited to contract holders of the life insurance segment. • Income before income taxes for the Other category is primarily due to interest expense from debt of the parent company, operating expenses of our headquarters and premiums earned minus loss and loss expenses and underwriting expenses of Cincinnati Re and Cincinnati Global. We do not separately report the identifiable assets of property casualty insurance for the commercial, personal and excess and surplus lines segments or for Cincinnati Re because we do not use that measure to analyze performance. We include all investment portfolio assets, regardless of ownership, in the investments segment. Segment information is summarized in the following table: (Dollars in millions) Years ended December 31, 2023 2022 2021 Revenues: Commercial lines insurance Commercial casualty $ 1,481 $ 1,416 $ 1,270 Commercial property 1,264 1,136 1,043 Commercial auto 862 842 794 Workers' compensation 277 284 268 Other commercial 380 346 299 Commercial lines insurance premiums 4,264 4,024 3,674 Fee revenues 4 4 4 Total commercial lines insurance 4,268 4,028 3,678 Personal lines insurance Personal auto 721 626 609 Homeowner 1,044 829 726 Other personal 279 234 207 Personal lines insurance premiums 2,044 1,689 1,542 Fee revenues 4 4 4 Total personal lines insurance 2,048 1,693 1,546 Excess and surplus lines insurance 542 485 398 Fee revenues 3 2 2 Total excess and surplus lines insurance 545 487 400 Life insurance premiums 313 301 294 Fee revenues 10 4 5 Total life insurance 323 305 299 Investments Investment income, net of expenses 894 781 714 Investment gains and losses, net 1,127 (1,467) 2,409 Total investment revenue 2,021 (686) 3,123 Other Premiums 795 726 570 Other 13 10 10 Total other revenue 808 736 580 Total revenues $ 10,013 $ 6,563 $ 9,626 Income (loss) before income taxes: Insurance underwriting results Commercial lines insurance $ 168 $ 38 $ 598 Personal lines insurance (4) 18 97 Excess and surplus lines insurance 54 48 44 Life insurance 41 27 12 Investments 1,900 (795) 3,018 Other 117 (30) (71) Total income (loss) before income taxes $ 2,276 $ (694) $ 3,698 December 31, December 31, Identifiable assets: 2023 2022 Property casualty insurance $ 5,294 $ 5,178 Life insurance 1,562 1,518 Investments 24,999 22,133 Other 914 903 Total $ 32,769 $ 29,732 |
Summary Of Investments Other Th
Summary Of Investments Other Than Investments In Related Parties | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Summary Of Investments Other Than Investments In Related Parties | Schedule I Cincinnati Financial Corporation and Subsidiaries Summary of Investments - Other Than Investments in Related Parties (Dollars in millions) At December 31, 2023 Type of investment Cost or Fair Balance sheet Fixed maturities: States, municipalities and political subdivisions: The Cincinnati Insurance Company $ 3,339 $ 3,278 $ 3,278 The Cincinnati Casualty Company 239 231 231 The Cincinnati Indemnity Company 50 49 49 The Cincinnati Life Insurance Company 447 388 388 The Cincinnati Specialty Underwriters Insurance Company 738 710 710 Cincinnati Financial Corporation 54 47 47 Total 4,867 4,703 4,703 United States government: The Cincinnati Insurance Company 122 119 119 The Cincinnati Casualty Company 1 1 1 The Cincinnati Indemnity Company 1 1 1 Cincinnati Global Underwriting Ltd. 79 79 79 Total 203 200 200 Government-sponsored enterprises: The Cincinnati Insurance Company 641 641 641 The Cincinnati Casualty Company 25 25 25 The Cincinnati Indemnity Company 6 6 6 The Cincinnati Life Insurance Company 320 318 318 The Cincinnati Specialty Underwriters Insurance Company 126 126 126 Cincinnati Global Underwriting Ltd. 6 5 5 Cincinnati Financial Corporation 103 103 103 Total 1,227 1,224 1,224 Foreign government: Cincinnati Global Underwriting Ltd. 25 25 25 Total 25 25 25 All other corporate bonds: The Cincinnati Insurance Company 4,147 3,955 3,955 The Cincinnati Casualty Company 98 89 89 The Cincinnati Indemnity Company 35 33 33 The Cincinnati Life Insurance Company 3,176 3,005 3,005 The Cincinnati Specialty Underwriters Insurance Company 398 373 373 Cincinnati Global Underwriting Ltd. 158 158 158 Cincinnati Financial Corporation 27 26 26 Total 8,039 7,639 7,639 Total fixed maturities $ 14,361 $ 13,791 $ 13,791 Schedule I (continued) Cincinnati Financial Corporation and Subsidiaries Summary of Investments - Other Than Investments in Related Parties (Dollars in millions) At December 31, 2023 Type of investment Cost or Fair Balance sheet Equity securities: Common equities: The Cincinnati Insurance Company $ 2,025 $ 5,558 $ 5,558 The Cincinnati Casualty Company 58 171 171 The Cincinnati Indemnity Company 18 40 40 The Cincinnati Specialty Underwriters Insurance Company 109 302 302 CSU Producer Resources Inc. 17 28 28 Cincinnati Financial Corporation 1,642 4,542 4,542 Total 3,869 10,641 10,641 Nonredeemable preferred equities: The Cincinnati Insurance Company 397 334 334 The Cincinnati Life Insurance Company 13 12 12 Cincinnati Financial Corporation 3 2 2 Total 413 348 348 Total equity securities $ 4,282 $ 10,989 $ 10,989 Other invested assets: Policy loans: The Cincinnati Life Insurance Company $ 33 — $ 33 Deposits at Lloyd's: Cincinnati Global Underwriting Ltd. 39 — 39 Cincinnati Financial Corporation 5 — 5 Private equity: The Cincinnati Insurance Company (1) 389 — 389 The Cincinnati Life Insurance Company (1) 5 — 5 Cincinnati Financial Corporation (1) 40 — 40 Real estate: The Cincinnati Insurance Company (1) 58 — 58 The Cincinnati Life Insurance Company (1) 4 — 4 Cincinnati Financial Corporation (1) 4 — 4 Total other invested assets $ 577 — $ 577 Total investments $ 19,220 — $ 25,357 |
Condensed Financial Statements
Condensed Financial Statements Of Parent Company | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Statements Of Parent Company | Schedule II Cincinnati Financial Corporation (parent company only) Condensed Balance Sheets (Dollars in millions) At December 31, 2023 2022 Assets Investments Fixed maturities, at fair value (amortized cost: 2023—$184; 2022—$91) $ 176 $ 78 Equity securities, at fair value (cost: 2023—$1,645; 2022—$1,734) 4,544 3,978 Other invested assets 49 53 Total investments 4,769 4,109 Cash and cash equivalents 138 121 Equity in net assets of subsidiaries 8,481 7,427 Investment income receivable 13 11 Land, building and equipment, net, for company use (accumulated depreciation: 2023—$164; 2022—$156) 138 136 Income tax receivable 4 5 Other assets 150 116 Due from subsidiaries 40 102 Total assets $ 13,733 $ 12,027 Liabilities Dividends declared but unpaid $ 118 $ 108 Deferred federal income tax 624 480 Long-term debt 789 789 Other liabilities 104 88 Total liabilities 1,635 1,465 Shareholders' Equity Common stock 397 397 Paid-in capital 1,437 1,392 Retained earnings 13,084 11,711 Accumulated other comprehensive income (435) (614) Treasury stock, at cost (2,385) (2,324) Total shareholders' equity 12,098 10,562 Total liabilities and shareholders' equity $ 13,733 $ 12,027 This condensed financial information should be read in conjunction with the Consolidated Financial Statements and Notes included in Part II, Item 8. Schedule II (continued) Cincinnati Financial Corporation (parent company only) Condensed Statements of Income and Comprehensive Income (Dollars in millions) Years ended December 31, 2023 2022 2021 Revenues Investment income, net of expenses $ 109 $ 101 $ 91 Investment gains and losses, net 644 (790) 1,058 Other revenue 15 15 15 Total revenues 768 (674) 1,164 Expenses Interest expense 52 53 53 Other expenses 38 33 32 Total expenses 90 86 85 Income (Loss) Before Income Taxes and Earnings of Subsidiaries 678 (760) 1,079 Provision (Benefit) for Income Taxes 134 (161) 217 Net Income (Loss) Before Earnings of Subsidiaries 544 (599) 862 Increase in equity of subsidiaries 1,299 112 2,106 Net Income (Loss) $ 1,843 $ (487) $ 2,968 Other Comprehensive Income (Loss), Net of Taxes Change in unrealized gain on securities 4 (10) 1 Amortization of pension actuarial gains (losses) and prior service costs (5) 7 54 Other Comprehensive Income (Loss), Net of Taxes Before Other (1) (3) 55 Other comprehensive income (loss) of subsidiaries 180 (908) (93) Other comprehensive income (loss) 179 (911) (38) Comprehensive Income (Loss) $ 2,022 $ (1,398) $ 2,930 This condensed financial information should be read in conjunction with the Consolidated Financial Statements and Notes included in Part II, Item 8. Schedule II (continued) Cincinnati Financial Corporation (parent company only) Condensed Statements of Cash Flows (Dollars in millions) Years ended December 31, 2023 2022 2021 Cash Flows From Operating Activities Net income $ 1,843 $ (487) $ 2,968 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization and other 10 9 10 Investment gains and losses, net (644) 792 (1,034) Dividends from subsidiaries 426 729 598 Changes in: Increase in equity of subsidiaries (1,299) (112) (2,106) Current federal income taxes 1 (6) 6 Deferred income tax 144 (183) 220 Other assets (12) (7) 5 Other liabilities 3 1 — Intercompany receivable for operations 95 28 5 Net cash provided by operating activities 567 764 672 Cash Flows From Investing Activities Sale, call or maturity of fixed maturities 17 1 22 Sale of equity securities 138 192 25 Purchase of fixed maturities (119) (30) (19) Purchase of equity securities (65) (187) (82) Investment in buildings and equipment (10) (4) (6) Change in other invested assets, net — (4) 108 Net cash (used in) received from investing activities (39) (32) 48 Cash Flows From Financing Activities Payment of cash dividends to shareholders (454) (423) (395) Shares acquired - share repurchase authorization (67) (410) (144) Proceeds from stock options exercised 9 10 13 Other 1 1 1 Net cash used in financing activities (511) (822) (525) Net change in cash and cash equivalents 17 (90) 195 Cash and cash equivalents at beginning of year 121 211 16 Cash and cash equivalents at end of year $ 138 $ 121 $ 211 |
Supplementary Insurance Informa
Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
Supplementary Insurance Information | Schedule III Cincinnati Financial Corporation and Subsidiaries Supplementary Insurance Information (Dollars in millions) Years ended December 31, 2023 2022 2021 Deferred policy acquisition costs: Commercial lines insurance $ 387 $ 372 $ 345 Personal lines insurance 210 168 145 Excess and surplus lines insurance 43 37 33 Other 109 105 79 Total property casualty insurance 749 682 602 Life insurance 344 331 314 Total $ 1,093 $ 1,013 $ 916 Gross future policy benefits, losses, claims and expense losses: Commercial lines insurance $ 5,887 $ 5,568 $ 5,007 Personal lines insurance 990 916 814 Excess and surplus lines insurance 932 753 577 Other 1,166 1,099 831 Total property casualty insurance 8,975 8,336 7,229 Life insurance 3,094 3,038 3,498 Total (1) $ 12,069 $ 11,374 $ 10,727 Gross unearned premiums: Commercial lines insurance $ 2,111 $ 2,021 $ 1,857 Personal lines insurance 1,253 994 850 Excess and surplus lines insurance 273 236 207 Other 481 437 356 Total property casualty insurance 4,118 3,688 3,270 Life insurance 1 1 1 Total (1) $ 4,119 $ 3,689 $ 3,271 Other policy claims and benefits payable: Commercial lines insurance $ — $ — $ — Personal lines insurance — — — Excess and surplus lines insurance — — — Other — — — Total property casualty insurance — — — Life insurance 49 41 53 Total (1) $ 49 $ 41 $ 53 Earned premiums: Commercial lines insurance $ 4,264 $ 4,024 $ 3,674 Personal lines insurance 2,044 1,689 1,542 Excess and surplus lines insurance 542 485 398 Other 795 726 570 Total property casualty insurance 7,645 6,924 6,184 Life insurance 313 301 294 Total $ 7,958 $ 7,225 $ 6,478 Schedule III (continued) Cincinnati Financial Corporation and Subsidiaries Supplementary Insurance Information (Dollars in millions) Years ended December 31, 2023 2022 2021 Investment income, net of expenses: Commercial lines insurance $ — $ — $ — Personal lines insurance — — — Excess and surplus lines insurance — — — Other — — — Total property casualty insurance (2) 602 509 457 Life insurance 184 171 166 Total $ 786 $ 680 $ 623 Benefits, claims losses and settlement expenses: Commercial lines insurance $ 2,787 $ 2,761 $ 1,940 Personal lines insurance 1,442 1,166 992 Excess and surplus lines insurance 350 315 250 Other 379 474 414 Total property casualty insurance 4,958 4,716 3,596 Life insurance 316 303 313 Total $ 5,274 $ 5,019 $ 3,909 Amortization of deferred policy acquisition costs: Commercial lines insurance $ 808 $ 769 $ 703 Personal lines insurance 367 311 276 Excess and surplus lines insurance 89 79 63 Other 157 144 109 Total property casualty insurance 1,421 1,303 1,151 Life insurance 29 27 25 Total (3) $ 1,450 $ 1,330 $ 1,176 Underwriting, acquisition and insurance expenses: Commercial lines insurance $ 505 $ 460 $ 437 Personal lines insurance 243 198 181 Excess and surplus lines insurance 52 45 43 Other 76 72 55 Total property casualty insurance 876 775 716 Life insurance 58 57 54 Total (3) $ 934 $ 832 $ 770 Net written premiums: Commercial lines insurance $ 4,336 $ 4,159 $ 3,811 Personal lines insurance 2,302 1,831 1,594 Excess and surplus lines insurance 570 502 426 Other 838 815 648 Total property casualty insurance 8,046 7,307 6,479 Accident and health insurance 2 2 2 Total $ 8,048 $ 7,309 $ 6,481 Notes to Schedule III: (1) The sum of gross future policy benefits, losses, claims and expense losses, gross unearned premiums and other policy claims and benefits payable is equal to the sum of Loss and loss expense reserves, Life policy reserves and investment contract reserves and Unearned premiums reported in the company’s consolidated balance sheets. (2) This segment information is not regularly allocated to segments and reviewed by company management in making decisions about resources to be allocated to the segments or to assess their performance. (3) The sum of amortization of deferred policy acquisition costs and other underwriting and insurance expenses is equal to Underwriting, acquisition and insurance expenses in the consolidated statements of income. |
Reinsurance - Schedule IV
Reinsurance - Schedule IV | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Text Block] | Schedule IV Cincinnati Financial Corporation and Subsidiaries Reinsurance (Dollars in millions) Years ended December 31, 2023 2022 2021 Gross amounts: Life insurance in force $ 122,053 $ 120,147 $ 116,697 Earned premiums Commercial lines insurance $ 4,399 $ 4,150 $ 3,777 Personal lines insurance 2,117 1,755 1,586 Excess and surplus lines insurance 572 510 417 Other 319 262 216 Total property casualty insurance 7,407 6,677 5,996 Life insurance 394 379 370 Total $ 7,801 $ 7,056 $ 6,366 Ceded amounts to other companies: Life insurance in force $ 39,692 $ 39,665 $ 39,204 Earned premiums Commercial lines insurance $ 147 $ 137 $ 115 Personal lines insurance 74 67 45 Excess and surplus lines insurance 30 25 19 Other 80 85 76 Total property casualty insurance 331 314 255 Life insurance 81 78 76 Total $ 412 $ 392 $ 331 Assumed amounts from other companies: Life insurance in force $ — $ — $ — Earned premiums Commercial lines insurance $ 12 $ 11 $ 12 Personal lines insurance 1 1 1 Excess and surplus lines insurance — — — Other 556 549 430 Total property casualty insurance 569 561 443 Life insurance — — — Total $ 569 $ 561 $ 443 Net amounts: Life insurance in force $ 82,361 $ 80,482 $ 77,493 Earned premiums Commercial lines insurance $ 4,264 $ 4,024 $ 3,674 Personal lines insurance 2,044 1,689 1,542 Excess and surplus lines insurance 542 485 398 Other 795 726 570 Total property casualty insurance 7,645 6,924 6,184 Life insurance 313 301 294 Total $ 7,958 $ 7,225 $ 6,478 Percentage of amounts assumed to net: Life insurance in force — % — % — % Earned premiums Commercial lines insurance 0.3 % 0.3 % 0.3 % Personal lines insurance — 0.1 0.1 Excess and surplus lines insurance — — — Other 69.9 75.6 75.4 Total property casualty insurance 7.4 8.1 7.2 Life insurance — — — Total 7.2 7.8 6.8 |
Valuation And Qualifying Accoun
Valuation And Qualifying Accounts | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation And Qualifying Accounts | Schedule V Cincinnati Financial Corporation and Subsidiaries Valuation and Qualifying Accounts (Dollars in millions) At December 31, 2023 2022 2021 Allowance for credit losses (1): Beginning balance, January 1 $ 17 $ 16 $ 22 Additions charged to costs and expenses 33 15 14 Deductions (14) (14) (20) Ending balance, December 31 $ 36 $ 17 $ 16 Deferred tax valuation allowance: Beginning balance, January 1 $ 31 $ 53 $ 56 Additions charged to costs and expenses — — — Deductions (31) (22) (3) Ending balance, December 31 — 31 53 Total valuation and qualifying accounts $ 36 $ 48 $ 69 Notes to Schedule V: (1) Includes allowances for credit losses related to premiums receivable, reinsurance recoverable, finance receivables and fixed-maturity securities. |
Supplementary Information Conce
Supplementary Information Concerning Property Casualty Insurance Operations | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Abstract] | |
Supplementary Information Concerning Property Casualty Insurance Operations | Schedule VI Cincinnati Financial Corporation and Subsidiaries Supplementary Information Concerning Property Casualty Insurance Operations (Dollars in millions) Years ended December 31, 2023 2022 2021 Deferred policy acquisition costs: Commercial lines insurance $ 387 $ 372 $ 345 Personal lines insurance 210 168 145 Excess and surplus lines insurance 43 37 33 Other 109 105 79 Total $ 749 $ 682 $ 602 Reserves for unpaid claims and claim adjustment expenses: Commercial lines insurance $ 5,887 $ 5,568 $ 5,007 Personal lines insurance 990 916 814 Excess and surplus lines insurance 932 753 577 Other 1,166 1,099 831 Total $ 8,975 $ 8,336 $ 7,229 Reserve discount deducted $ — $ — $ — Gross unearned premiums: Commercial lines insurance $ 2,111 $ 2,021 $ 1,857 Personal lines insurance 1,253 994 850 Excess and surplus lines insurance 273 236 207 Other 481 437 356 Total $ 4,118 $ 3,688 $ 3,270 Earned premiums: Commercial lines insurance $ 4,264 $ 4,024 $ 3,674 Personal lines insurance 2,044 1,689 1,542 Excess and surplus lines insurance 542 485 398 Other 795 726 570 Total $ 7,645 $ 6,924 $ 6,184 Investment income, net of expenses: Commercial lines insurance $ — $ — $ — Personal lines insurance — — — Excess and surplus lines insurance — — — Other — — — Total (1) $ 602 $ 509 $ 457 Note to Schedule VI: (1) This segment information is not regularly allocated to segments and not reviewed by company management in making decisions about resources to be allocated to the segments or to assess their performance. Schedule VI (continued) Cincinnati Financial Corporation and Subsidiaries Supplementary Information Concerning Property Casualty Insurance Operations (Dollars in millions) Years ended December 31, 2023 2022 2021 Loss and loss expenses incurred related to current accident year: Commercial lines insurance $ 2,910 $ 2,837 $ 2,293 Personal lines insurance 1,506 1,227 1,042 Excess and surplus lines insurance 361 324 243 Other 396 487 446 Total $ 5,173 $ 4,875 $ 4,024 Loss and loss expenses incurred related to prior accident years: Commercial lines insurance $ (123) $ (76) $ (353) Personal lines insurance (64) (61) (50) Excess and surplus lines insurance (11) (9) 7 Other (17) (13) (32) Total $ (215) $ (159) $ (428) Amortization of deferred policy acquisition costs: Commercial lines insurance $ 808 $ 769 $ 703 Personal lines insurance 367 311 276 Excess and surplus lines insurance 89 79 63 Other 157 144 109 Total $ 1,421 $ 1,303 $ 1,151 Paid loss and loss expenses: Commercial lines insurance $ 2,480 $ 2,211 $ 1,806 Personal lines insurance 1,353 1,071 914 Excess and surplus lines insurance 183 145 118 Other 260 260 256 Total $ 4,276 $ 3,687 $ 3,094 Net written premiums: Commercial lines insurance $ 4,336 $ 4,159 $ 3,811 Personal lines insurance 2,302 1,831 1,594 Excess and surplus lines insurance 570 502 426 Other 838 815 648 Total $ 8,046 $ 7,307 $ 6,479 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ 1,843 | $ (487) | $ 2,968 |
Insider Trading Arrangements
Insider Trading Arrangements | 12 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations Cincinnati Financial Corporation (CFC) operates through The Cincinnati Insurance Company and Cincinnati Global Underwriting Ltd. SM (Cincinnati Global) insurance subsidiaries and two complementary subsidiary companies. The Cincinnati Insurance Company leads our insurance group that also includes two subsidiaries: The Cincinnati Casualty Company and The Cincinnati Indemnity Company. This group markets a broad range of standard market commercial and personal policies. The group focuses on delivery of quality customer service to our select group of 2,080 independent insurance agencies with 3,116 reporting locations across 46 states. Other subsidiaries of The Cincinnati Insurance Company include: The Cincinnati Life Insurance Company, which markets life insurance and fixed annuities; and The Cincinnati Specialty Underwriters Insurance Company, which offers excess and surplus lines property casualty insurance products. The Cincinnati Insurance Company also conducts the business of our reinsurance assumed operations, Cincinnati Re ® . The two CFC complementary subsidiaries are CSU Producer Resources Inc., which provides insurance brokerage services to our independent agencies so their clients can access our excess and surplus lines insurance products, and CFC Investment Company, which offers commercial leasing and financing services to our agents, their clients and other customers. |
Basis of Presentation | Basis of Presentation Our consolidated financial statements include the accounts of the parent and its wholly owned subsidiaries and are presented in conformity with accounting principles generally accepted in the United States of America (GAAP). Foreign exchange rates related to Cincinnati Global's operations did not have a material impact to our consolidated financial statements. All intercompany balances and transactions have been eliminated in consolidation. The preparation of the consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect amounts reported in the consolidated financial statements and accompanying notes. Our actual results could differ from those estimates. |
Investments | Investments Our portfolio investments are primarily in publicly traded fixed-maturity and equity security investments. Fixed-maturity investments (taxable bonds, tax-exempt bonds, redeemable preferred equities and mortgage-backed securities) classified as available for sale and equity investments (common and nonredeemable preferred equities) are recorded at fair value in the consolidated financial statements. Changes in fair value of fixed-maturity securities are reported in other comprehensive income while equity securities are reported in net income. The number of fixed-maturity securities with fair values below 100% of amortized cost can be expected to fluctuate as interest rates rise or fall. Because of our strong capital and long-term investment horizon, our general intent is to hold fixed-maturity investments until maturity, regardless of short-term fluctuations in fair values. An available for sale fixed maturity is impaired if the fair value of the security is below amortized cost. The impaired loss is charged to net income when we have the intent to sell the security or it is more likely than not we will be required to sell the security before recovery of the amortized cost. For impaired securities we intend to hold, an allowance for credit related losses is recorded in investment losses when the company determines a credit loss has been incurred based on certain factors such as adverse conditions, credit rating downgrades or failure of the issuer to make scheduled principal or interest payments. A credit loss is determined using a discounted cash flow analysis by comparing the present value of expected cash flows with the amortized cost basis, limited to the difference between fair value and amortized cost. Noncredit losses are recognized in other comprehensive income as a change in unrealized gains and losses on investments. As securities are sold, we recognize the gain or loss in net income based on the trade date. Included within our other invested assets were $434 million and $337 million of private equity investments, $66 million and $47 million of real estate through direct property ownership and development projects in the United States, $44 million and $37 million held on deposit at Lloyd's and $33 million and $31 million of life policy loans at December 31, 2023 and 2022, respectively. The private equity investments provide their financial statements to us and generally report investments on their balance sheets at fair value. We use the equity method of accounting for private equity and real estate development investments. Lloyd's deposits primarily consist of highly liquid short-term investment instruments. Life policy loans are carried at the receivable value. Investment income, net of expenses, consists mainly of interest and dividends. We record interest on an accrual basis and record dividends at the ex-dividend date. We amortize premiums and discounts on fixed-maturity securities using the effective interest method over the expected life of the security. |
Fair Value Disclosures | Fair Value Disclosures Fair value is defined as the exit price or the amount that would be (1) received to sell an asset or (2) paid to transfer a liability in an orderly transaction between marketplace participants at the measurement date. When determining an exit price, we rely upon observable market data whenever possible. We primarily base fair value for investments in equity and fixed-maturity securities (including redeemable preferred stock and assets held in separate accounts) on quoted market prices or on prices from the company’s nationally recognized pricing vendors, outside resources that supply global securities pricing, dividend, corporate action and descriptive information to support fund pricing, securities operations, research and portfolio management. The company obtains and reviews the pricing services' valuation methodologies and related inputs and validates these prices by replicating a sample across each asset class using a discounted cash flow model. When a price is not available from these sources, as in the case of securities that are not publicly traded, we determine the fair value using various inputs including quotes from independent brokers. The fair value of investments not priced by the company’s nationally recognized pricing vendors is immaterial. For the purpose of Accounting Standards Codification (ASC) 825, Financial Instruments disclosure, we estimate the fair value of our long-term senior notes on market pricing of similar debt instruments that are actively trading. We estimate the fair value of our note payable on the year-end outstanding balance because it is short term and tied to a variable interest rate. We estimate the fair value of liabilities for investment contracts and annuities using discounted cash flow calculations across a wide range of economic interest rate scenarios with a provision for our nonperformance risk. We estimate the fair value for policyholder loans on insurance contracts using a discounted cash flow model. Determination of fair value for structured settlements assumes the discount rates used to calculate the present value of expected payments are the risk-free spot rates plus an A3 rated bond spread for financial issuers at December 31, 2023, to account for nonperformance risk. See Note 3, Fair Value Measurements, for further details. |
Cash And Cash Equivalents | Cash and Cash Equivalents |
Property Casualty Insurance | Property Casualty Insurance The consolidated property casualty companies actively write property casualty insurance through independent agencies in 46 states. Our 10 largest states generated 50.1% of total earned premiums in 2023 and 2022. Ohio, our largest state, accounted for 13.4% of total earned premiums in 2023 and 2022. Illinois, New York, North Carolina, Pennsylvania and Georgia each accounted for between 4% and 6% of total earned premiums in 2023. Our largest single agency relationship accounted for approximately 0.6% of our total property casualty earned premiums in 2023. No aggregate agency relationship locations under a single ownership structure accounted for more than 6% of our total property casualty earned premiums in 2023. We record revenues for installment charges as fee revenues in the consolidated statements of income. Property casualty written premiums are deferred and recorded as earned premiums primarily on a pro rata basis over the terms of the policies. We record as unearned premiums the portion of written premiums that applies to unexpired policy terms. Expenses associated with successfully acquiring insurance policies – commissions, premium taxes and underwriting costs – are deferred and amortized over the terms of the policies. We assess recoverability of deferred acquisition costs at a level consistent with the way we acquire, service and manage insurance policies and measure profitability. We analyze our acquisition cost assumptions to reflect actual experience, and we evaluate potential premium deficiencies. Certain property casualty policies are not entered into policy underwriting systems as of the effective date of coverage. An estimate is recorded for these unprocessed written premiums. A large majority of the estimate is unearned and has no material impact on earned premiums. An allowance for credit losses on uncollectible property casualty premiums is updated and reviewed on a quarterly basis. The allowance for credit losses was $16 million, $13 million and $14 million at December 31, 2023, 2022 and 2021, respectively. Changes in the amount for each period were immaterial. |
Policyholder Dividends | Policyholder Dividends Certain workers’ compensation policies include the possibility of a policyholder earning a return of a portion of premium in the form of a policyholder dividend. The dividend generally is calculated by determining the profitability of a policy year along with the associated premium. We reserve for all probable future policyholder dividend payments. We record policyholder dividends as other underwriting expenses. |
Life Insurance | Life Insurance We offer several types of life insurance and we account for each according to the duration of the contract. Short-duration life and health contracts are written to cover claims that arise during a short, fixed term of coverage. We generally have the right to change the amount of premium charged or cancel the coverage at the end of each contract term. We record premiums for short-duration life and health contracts similarly to property casualty contracts. Long-duration contracts are written to provide coverage for an extended period of time. Traditional long-duration contracts require policyholders to pay scheduled gross premiums, generally not less frequently than annually, over the term of the coverage. Premiums for these contracts, such as whole life insurance, are recognized as revenue when due. Some traditional long-duration contracts, such as ten-pay whole life insurance, have premium payment periods shorter than the period over which coverage is provided. For these contracts, the excess of premium over the amount required to pay expenses and benefits is recognized over the term of the coverage rather than over the premium payment period. We establish reserves for traditional long-duration contracts, including term, whole life and other products, based on th e present value of future benefits and claim expenses less the present value of future net premiums. Net premium is the portion of gross premium required to provide for all benefits and claim expenses. We estimate future benefits and claim expenses and net pr emium using certain cash flow assumptions including mortality, morbidity and lapse rates as well as a discount rate assumption. The cash flow assumptions are established based on our current expectations and are reviewed annually to determine any necessary updates. These assumptions are also updated on an interim basis if evidence suggests that they should be revised. We use both our own experience and industry experience, adjusted for historical trends, in arriving at our cash flow assumptions. The discount rate assumption is based on upper-medium grade fixed-income instrument yields (market value discount rates) and is updated quarterly. Certain assumptions, including the mortality, lapse and long-term interest rate reversion targets, were updated in 2023 as part of our annual assumption unlocking. See Note 5, Life Policy and Investment Contract Reserves, for further detail regarding the measurement impact on traditional long-duration contract reserves due to changes in the inputs, judgments and assumptions during the period. We also offer universal life, deferred annuity and other investment contracts. Universal life contracts are long-duration contracts for which contractual provisions are not fixed, unlike whole life insurance. Universal life contracts allow policyholders to vary the amount of premium, within limits, without our consent. However, we may vary the mortality, expense charges and the interest crediting rate, within limits, used to accumulate policy values. We do not record universal life premiums as revenue. Instead we recognize as revenue the mortality charges, administration charges and surrender charges when received. Some of our universal life contracts assess administration charges in the early years of the contract that are compensation for services we will provide in the later years of the contract. These administrati on charges are deferred and are recognized over the period when we provide those future services. Deferred annuities provide regular income payments to annuitants once certain criteria are met. During the deferral period, payments made by the annuitants under the contract accumulate at the crediting rate declared by the company but not less than a contract-specified guaranteed minimum interest rate. We also do not record deferred annuity premiums as revenue. We establish reserves for our universal life, deferred annuity and other investment contracts equal to the cumulative account balances, which include premium deposits plus credited interest less charges and withdrawals. Some of our universal life insurance 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. We capitalize acquisition costs associated with successfully acquiring traditional and universal life long-duration contracts. We charge these capitalized costs to expenses on a constant-level basis that approximates straight-line amortization over the expected term of the related contracts. |
Separate Accounts | Separate Accounts We have issued universal life contracts with guaranteed minimum returns, referred to as bank-owned life insurance contracts (BOLIs). A BOLI is designed so the bank is the policy owner and the policy beneficiary. We legally segregate and record as separate accounts the assets and liabilities for certain BOLIs, when required by the specific contract provisions. We guarantee minimum investment returns, account values and death benefits for our separate account BOLIs. Our other BOLIs are general account products. We carry the assets of separate account BOLIs at fair value. The liabilities on separate account BOLIs primarily are carried at an amount equal to the contract holders’ account value, plus any cumulative unrealized gains on the related assets impacting separate account liabilities. The contract holders’ account value exceeded the current fair value of the BOLI invested assets and cash by approximately $43 million and $64 million at December 31, 2023 and 2022, respectively. |
Reinsurance | Reinsurance The Cincinnati Insurance Company offers reinsurance assumed for casualty (predominantly domestic exposure), specialty and property (worldwide exposure). Treaties are written on a pro rata and excess of loss basis. We also continue to assume risk with limited exposure as a reinsurer for involuntary state pools. Written premium is recorded, net of contract specific retrocessions, on an ultimate estimate basis and primarily earned on a pro rata basis over the coverage period of the treaty. Expenses are recorded as per contract terms and deferred over the earning period of the premium. We establish known loss reserves when reported. We establish reserves for losses in excess of reported activity in the form of IBNR. Reserves are established using actuarial analysis, which includes models and methods traditionally used for the types of exposures written. We establish reserves for event specific occurrences using modeling data and company specific data when available. We enter into other reinsurance transactions to reduce risk and uncertainty by buying property casualty reinsurance and retrocessional reinsurance as well as life reinsurance. Reinsurance and retrocessional reinsurance contracts do not relieve us from our obligation to policyholders, but rather help protect our financial strength to perform that duty. All of these ceded reinsurance contracts transfer the economic risk of loss. Premiums that we cede are deferred and recorded as earned premiums on a pro rata basis over the terms of the contracts. We estimate loss amounts recoverable from our reinsurers based on the reinsurance policy terms. Historically, our claims with reinsurers have been paid. An allowance for credit losses on uncollectible reinsurance premiums and recoverable assets is updated and reviewed on a quarterly basis. At December 31, 2023, 2022 and 2021, the allowances, including changes in the amount for each period, were immaterial. |
Income Taxes | Income Taxes We calculate deferred income tax liabilities and assets using tax rates in effect when temporary differences in taxable income and financial statement income are expected to reverse. We recognize deferred income taxes for numerous temporary differences between our taxable income and financial statement income and other changes in shareholders’ equity. Such temporary differences relate primarily to unrealized gains and losses on investments and differences in the recognition of deferred acquisition costs, unearned premiums, insurance reserves, international earnings and basis differences in the carrying value of investments held. We charge deferred income taxes associated with balances that impact other comprehensive income, such as unrealized gains and losses of fixed-maturity investments, to shareholders’ equity in accumulated other comprehensive income (AOCI). We charge deferred taxes associated with other differences to income. See Note 11, Income Taxes, for further detail on our uncertain tax positions and other income tax items. Although no Internal Revenue Service (IRS) penalties currently are accrued, if incurred, they would be recognized as a component of income tax expense. |
Earnings per Share | Earnings per Share Net income per common share is based on the weighted average number of common shares outstanding during each of the respective years. We calculate net income per common share (diluted) assuming the exercise or conversion of share‑based awards using the treasury stock method. |
Land, Building And Equipment | Land, Building and Equipment We record land at cost, and record building and equipment at cost less accumulated depreciation. Equipment held under finance leases also is classified as property and equipment with the related lease obligations recorded as liabilities. We capitalize and amortize costs for internally developed computer software during the application development stage. These costs generally consist of external consulting fees and internal payroll-related costs. Our depreciation is based on estimated useful lives (ranging from three We monitor land, building and equipment and software assets for potential impairments. Indicators of potential impairments may include a significant decrease in the fair values of the assets, considerable cost overruns on projects, a change in legal factors or business climate or other factors that indicate that the carrying amount may not be recoverable or useful. There were no recorded land, building and equipment impairments for 2023, 2022 or 2021. |
Finance Receivables | Finance Receivables Our leasing subsidiary provides auto and equipment direct financing (leases and loans) to commercial and individual clients. We generally transfer ownership of the property to the client as the terms of the leases expire. Our lease contracts contain bargain purchase options. We account for these leases and loans as sales-type leases. We capitalize and amortize lease or loan origination costs over the life of the financing, using the effective interest method. These costs may include, but are not limited to finder fees, broker fees, filing fees and the cost of credit reports. We record income as other revenues over the financing term using the effective interest method in the consolidated statements of income. An allowance for credit losses on finance receivables is updated and reviewed on a quarterly basis. At December 31, 2023, 2022 and 2021, the allowance, including changes in the amount for each period, was immaterial. |
Employee Benefit Pension Plan | Employee Benefit Pension Plan We sponsor a qualified defined benefit pension plan that was modified during 2008. We closed entry into the pension plan, and only participants 40 years of age or older could elect to remain in the plan. Our pension expenses are based on certain actuarial assumptions and also are composed of several components that are determined using the projected unit credit actuarial cost method. Refer to Note 13, Employee Retirement Benefits, for more information about our defined benefit pension plan. |
Stock-Based Compensation | Share-Based Compensation We grant qualified and nonqualified share-based compensation under authorized plans. The stock options generally vest on a graded scale over three years following the date of grant and are exercisable over 10-year periods. We grant service-based restricted stock units that cliff vest three years after the date of grant as well as service-based restricted stock units that vest ratably over the three |
Goodwill and Intangible Assets, Policy | Goodwill and Intangible Assets We recognize goodwill and intangible assets generated through acquisitions within other assets in the consolidated balance sheets. Goodwill arises when the fair value of consideration transferred exceeds the fair value of the net identifiable assets acquired at the acquisition date. Goodwill and intangible assets with an indefinite life are not amortized. Intangible assets with a definite life are amortized on a straight-line basis over the estimated useful lives as follows: broker relationships, 15 years; internally developed technology, five years. We test for impairments on an annual basis or more frequently if events or circumstances indicate that the asset might be impaired. The company performed its annual impairment test on goodwill and intangibles at September 30, which did not result in the recognition of an impairment los s. Within Cincinnati Global, and included in Other, the company held goodwill of $30 million and intangible assets with an indefinite life of $31 million at December 31, 2023 and 2022, respectively. |
Subsequent Events | Subsequent Events |
Accounting Updates | Adopted 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. 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 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 AOCI for discount rate updates. These ASUs also amend the previous guidance related to life deferred policy acquisition costs by requiring those costs be charged to expenses on a constant-level basis for a group of contracts that approximates straight-line amortization and by requiring 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. We adopted these ASUs on a modified retrospective basis on January 1, 2023, resulting in an after-t ax increase t o shareholders' e quity of $31 million. The following table illustrates the effect of adopting ASU 2018-12 in the consolidated balance sheets : (Dollars in millions) December 31, 2023 December 31, 2022 As originally reported As adjusted Difference Reinsurance recoverable $ 651 $ 640 $ 665 $ 25 Prepaid reinsurance premiums 55 79 51 (28) Deferred policy acquisition costs 1,093 1,014 1,013 (1) Total assets 32,769 29,736 29,732 (4) Life policy and investment contract reserves 3,068 3,059 3,015 (44) Deferred income tax 1,324 1,045 1,054 9 Total liabilities 20,671 19,205 19,170 (35) Retained earnings 13,084 11,702 11,711 9 Accumulated other comprehensive income (435) (636) (614) 22 Total shareholders' equity 12,098 10,531 10,562 31 Total liabilities and shareholders' equity 32,769 29,736 29,732 (4) The following table illustrates the effect of adopting ASU 2018-12 in the consolidated statements of income and consolidated statements of comprehensive income: (Dollars in millions, except per share data) Years ended December 31, 2023 2022 2021 As originally reported As adjusted Difference As originally reported As adjusted Difference Earned premiums $ 7,958 $ 7,219 $ 7,225 $ 6 $ 6,482 $ 6,478 $ (4) Insurance losses and contract holders' benefits 5,274 5,012 5,019 7 3,936 3,909 (27) Underwriting, acquisition and insurance expenses 2,384 2,162 2,162 — 1,951 1,946 (5) Deferred income tax expense 223 (355) (355) — 477 483 6 Net Income (Loss) 1,843 (486) (487) (1) 2,946 2,968 22 Change in life policy reserves, reinsurance recoverable and other, net of tax (34) 1 374 373 9 92 83 Other comprehensive income (loss) 179 (1,284) (911) 373 (121) (38) 83 Comprehensive Income (Loss) 2,022 (1,770) (1,398) 372 2,825 2,930 105 Net income (loss) per share: Basic $ 11.74 $ (3.06) $ (3.06) $ — $ 18.29 $ 18.43 $ 0.14 Diluted 11.66 (3.06) (3.06) — 18.10 18.24 0.14 The adoption of ASU 2018-12 did not have a material impact on the company's consolidated cash flows. Pending Accounting Updates ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 enhances reportable segment disclosures by requiring entities to disclose significant segment expenses that are regularly provided to the chief operating decision maker (CODM) and included within the reported measure of profit or loss. This ASU also requires disclosure of the title and position of the CODM as well as a description of how the reported measure of profit or loss is used to assess segment performance and allocate resources. The effective date of ASU 2023-07 is for annual reporting periods beginning after December 15, 2023, and interim reporting periods within annual periods beginning after December 15, 2024, and should be applied retrospectively to all prior periods presented. The ASU has not yet been adopted and will not have a material impact on our company’s consolidated financial position, results of operations or cash flows, but the ASU will require additional disclosures in our annual and interim financial statements. ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 enhances the transparency and decision usefulness of income tax disclosures by requiring entities to disclose specific categories within their rate reconciliation as well as additional items within those categories above a prescribed threshold. This ASU also requires disclosure of the amount of income taxes paid (net of refunds received) disaggregated by federal, state and foreign taxes as well as additional items within those categories above a prescribed threshold. The effective date of ASU 2023-09 is for annual reporting periods beginning after December 15, 2024, and should be applied prospectively with retrospective application permitted. The ASU has not yet been adopted and will not have a material impact on our company’s consolidated financial position, results of operations or cash flows, but the ASU will require additional disclosures in our annual financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Adopted Accounting Updates | The following table illustrates the effect of adopting ASU 2018-12 in the consolidated balance sheets : (Dollars in millions) December 31, 2023 December 31, 2022 As originally reported As adjusted Difference Reinsurance recoverable $ 651 $ 640 $ 665 $ 25 Prepaid reinsurance premiums 55 79 51 (28) Deferred policy acquisition costs 1,093 1,014 1,013 (1) Total assets 32,769 29,736 29,732 (4) Life policy and investment contract reserves 3,068 3,059 3,015 (44) Deferred income tax 1,324 1,045 1,054 9 Total liabilities 20,671 19,205 19,170 (35) Retained earnings 13,084 11,702 11,711 9 Accumulated other comprehensive income (435) (636) (614) 22 Total shareholders' equity 12,098 10,531 10,562 31 Total liabilities and shareholders' equity 32,769 29,736 29,732 (4) The following table illustrates the effect of adopting ASU 2018-12 in the consolidated statements of income and consolidated statements of comprehensive income: (Dollars in millions, except per share data) Years ended December 31, 2023 2022 2021 As originally reported As adjusted Difference As originally reported As adjusted Difference Earned premiums $ 7,958 $ 7,219 $ 7,225 $ 6 $ 6,482 $ 6,478 $ (4) Insurance losses and contract holders' benefits 5,274 5,012 5,019 7 3,936 3,909 (27) Underwriting, acquisition and insurance expenses 2,384 2,162 2,162 — 1,951 1,946 (5) Deferred income tax expense 223 (355) (355) — 477 483 6 Net Income (Loss) 1,843 (486) (487) (1) 2,946 2,968 22 Change in life policy reserves, reinsurance recoverable and other, net of tax (34) 1 374 373 9 92 83 Other comprehensive income (loss) 179 (1,284) (911) 373 (121) (38) 83 Comprehensive Income (Loss) 2,022 (1,770) (1,398) 372 2,825 2,930 105 Net income (loss) per share: Basic $ 11.74 $ (3.06) $ (3.06) $ — $ 18.29 $ 18.43 $ 0.14 Diluted 11.66 (3.06) (3.06) — 18.10 18.24 0.14 The table below shows the ASU 2018-12 adoption impacts to the life policy and investment contract reserves as of January 1, 2021, (transition date), pre-tax: (Dollars in millions) Term Whole life Deferred annuity Universal life Other Total At January 1, 2021 Balance, pre-adoption at December 31, 2020 $ 901 $ 363 $ 761 $ 567 $ 323 $ 2,915 Removal of shadow adjustments — — — — 13 13 Net premiums in excess of gross premiums 14 1 — — — 15 Remeasurement at market value discount rates 372 245 — — — 617 Balance, post-adoption at January 1, 2021 $ 1,287 $ 609 $ 761 $ 567 $ 336 $ 3,560 The table below shows the ASU 2018-12 adoption impacts to the life reinsurance recoverable asset as of January 1, 2021, pre-tax: (Dollars in millions) Term Whole life Deferred annuity Universal life Other Total At January 1, 2021 Balance, pre-adoption at December 31, 2020 $ 113 $ 26 $ — $ — $ 78 $ 217 Remeasurement at market value discount rates 29 18 — — — 47 Other adjustments 20 1 — 2 — 23 Balance, post-adoption at January 1, 2021 $ 162 $ 45 $ — $ 2 $ 78 $ 287 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 At December 31, 2023 gains losses Fixed-maturity securities: Corporate $ 7,836 $ 70 $ 454 $ 7,452 States, municipalities and political subdivisions 4,867 44 208 4,703 Government-sponsored enterprises 1,227 3 6 1,224 United States government 203 — 3 200 Mortgage-backed 203 — 16 187 Foreign government 25 — — 25 Total $ 14,361 $ 117 $ 687 $ 13,791 At December 31, 2022 Fixed-maturity securities: Corporate $ 7,412 $ 37 $ 580 $ 6,869 States, municipalities and political subdivisions 4,901 24 303 4,622 Government-sponsored enterprises 186 — 3 183 United States government 196 — 5 191 Mortgage-backed 250 — 16 234 Foreign government 34 — 1 33 Total $ 12,979 $ 61 $ 908 $ 12,132 |
Fair Values And Unrealized Losses by Investment Category And By The Duration Of The Securities' Continuous Unrealized Loss Position | The table below provides fair values and 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 December 31, 2023 Fair Unrealized Fair Unrealized Fair Unrealized Fixed-maturity securities: Corporate $ 379 $ 13 $ 5,560 $ 441 $ 5,939 $ 454 States, municipalities and political subdivisions 313 2 1,932 206 2,245 208 Government-sponsored enterprises 652 3 113 3 765 6 United States government 32 — 129 3 161 3 Mortgage-backed 5 — 172 16 177 16 Foreign government 3 — 6 — 9 — Total $ 1,384 $ 18 $ 7,912 $ 669 $ 9,296 $ 687 At December 31, 2022 Fixed-maturity securities: Corporate $ 5,651 $ 412 $ 661 $ 168 $ 6,312 $ 580 States, municipalities and political subdivisions 2,600 274 77 29 2,677 303 Government-sponsored enterprises 123 3 3 — 126 3 United States government 146 3 41 2 187 5 Mortgage-backed 215 13 14 3 229 16 Foreign government 25 1 4 — 29 1 Total $ 8,760 $ 706 $ 800 $ 202 $ 9,560 $ 908 |
Contractual Maturity Dates For Fixed-Maturity And Short-Term Investments | Contractual maturity dates for fixed-maturity securities were: (Dollars in millions) Amortized cost Fair % of fair value At December 31, 2023 Maturity dates: Due in one year or less $ 973 $ 964 7.0 % Due after one year through five years 4,407 4,304 31.2 Due after five years through ten years 3,592 3,474 25.2 Due after ten years 5,389 5,049 36.6 Total $ 14,361 $ 13,791 100.0 % |
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: (Dollars in millions) Years ended December 31, 2023 2022 2021 Investment income: Interest $ 600 $ 510 $ 477 Dividends 282 275 246 Other 25 11 5 Total 907 796 728 Less investment expenses 13 15 14 Total $ 894 $ 781 $ 714 Investment gains and losses, net: Equity securities: Investment gains and losses on securities sold, net $ (17) $ 16 $ 4 Unrealized gains and losses on securities still held, net 1,168 (1,526) 2,278 Subtotal 1,151 (1,510) 2,282 Fixed-maturity securities: Gross realized gains 4 6 36 Gross realized losses (5) (4) (5) Change in allowance for credit losses, net (17) — — Write-down of impaired securities with intent to sell (4) (5) (1) Subtotal (22) (3) 30 Other (2) 46 97 Total $ 1,127 $ (1,467) $ 2,409 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 December 31, 2023 and 2022. We do not have any liabilities carried at fair value. (Dollars in millions) Level 1 Level 3 At December 31, 2023 Level 2 Total Fixed maturities, available for sale: Corporate $ — $ 7,452 $ — $ 7,452 States, municipalities and political subdivisions — 4,703 — 4,703 Government-sponsored enterprises — 1,224 — 1,224 United States government 200 — — 200 Mortgage-backed — 187 — 187 Foreign government — 25 — 25 Subtotal 200 13,591 — 13,791 Common equities 10,641 — — 10,641 Nonredeemable preferred equities — 348 — 348 Separate accounts taxable fixed maturities — 854 — 854 Top Hat savings plan mutual funds and common 67 — — 67 Total $ 10,908 $ 14,793 $ — $ 25,701 At December 31, 2022 Fixed maturities, available for sale: Corporate $ — $ 6,869 $ — $ 6,869 States, municipalities and political subdivisions — 4,622 — 4,622 Government-sponsored enterprises — 183 — 183 United States government 191 — — 191 Mortgage-backed — 234 — 234 Foreign government — 33 — 33 Subtotal 191 11,941 — 12,132 Common equities 9,454 — — 9,454 Nonredeemable preferred equities — 387 — 387 Separate accounts taxable fixed maturities — 815 — 815 Top Hat savings plan mutual funds and common 57 — — 57 Total $ 9,702 $ 13,143 $ — $ 22,845 |
Fair Value of Life Policy Loans | The following table shows the fair value of our life policy loans, included in other invested assets: (Dollars in millions) Level 1 Level 2 Level 3 Total At December 31, 2023 Life policy loans $ — $ — $ 39 $ 39 At December 31, 2022 Life policy loans $ — $ — $ 37 $ 37 |
Debt | |
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) Level 1 Level 2 Level 3 Total At December 31, 2023 Note payable $ — $ 25 $ — $ 25 6.900% senior debentures, due 2028 — 29 — 29 6.920% senior debentures, due 2028 — 420 — 420 6.125% senior notes, due 2034 — 394 — 394 Total $ — $ 868 $ — $ 868 At December 31, 2022 Note payable $ — $ 50 $ — $ 50 6.900% senior debentures, due 2028 — 29 — 29 6.920% senior debentures, due 2028 — 418 — 418 6.125% senior notes, due 2034 — 388 — 388 Total $ — $ 885 $ — $ 885 |
Deferred Annuities and Structured Settlements | |
Fair Values of Deferred Annuities, Structured Settlements and Other Items | The following table shows fair value of our deferred annuities and structured settlements included in life policy and investment contract reserves: (Dollars in millions) Level 1 Level 2 Level 3 Total At December 31, 2023 Deferred annuities $ — $ — $ 603 $ 603 Structured settlements — 141 — 141 Total $ — $ 141 $ 603 $ 744 At December 31, 2022 Deferred annuities $ — $ — $ 621 $ 621 Structured settlements — 143 — 143 Total $ — $ 143 $ 621 $ 764 |
Property Casualty Loss and Lo_2
Property Casualty Loss and Loss Expenses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Insurance [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) Years ended December 31, 2023 2022 2021 Gross loss and loss expense reserves, January 1 $ 8,336 $ 7,229 $ 6,677 Less reinsurance recoverable 405 327 277 Net loss and loss expense reserves, January 1 7,931 6,902 6,400 Net incurred loss and loss expenses related to: Current accident year 5,173 4,875 4,024 Prior accident years (215) (159) (428) Total incurred 4,958 4,716 3,596 Net paid loss and loss expenses related to: Current accident year 1,875 1,592 1,379 Prior accident years 2,401 2,095 1,715 Total paid 4,276 3,687 3,094 Net loss and loss expense reserves, December 31 8,613 7,931 6,902 Plus reinsurance recoverable 362 405 327 Gross loss and loss expense reserves, December 31 $ 8,975 $ 8,336 $ 7,229 |
Reconciliation of Property casualty Incurred Losses and ALAE and Paid Losses and ALAE Development Information | The following table provides a reconciliation of the property casualty incurred losses and allocated loss adjustment expenses (ALAE) development and paid losses and ALAE development information at December 31, 2023. (Dollars in millions) Cumulative incurred losses Cumulative paid losses and ALAE as reported within the triangles, Liabilities for loss and ALAE for accident years not presented in the triangles, net of reinsurance Total liabilities for loss and ALAE, net of reinsurance Reinsurance recoverable on unpaid losses Total liabilities for gross loss and loss expense reserves Commercial casualty $ 6,497 $ 3,680 $ 91 $ 2,908 $ 19 $ 2,927 Workers' compensation 1,826 1,160 316 982 54 1,036 Commercial auto 2,432 1,657 32 807 4 811 Commercial property 3,496 3,033 12 475 50 525 Personal auto 1,884 1,594 12 302 25 327 Homeowner 2,576 2,231 6 351 (3) 348 Excess and surplus 1,545 707 4 842 33 875 Other lines 1,686 Total liabilities for loss and ALAE reserves 8,535 Unallocated loss adjustment expense reserves 440 Gross loss and loss expense reserves $ 8,975 |
Schedule of Incurred and Paid Losses and ALAE Development by Accident Year | The following table shows the commercial casualty incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency: (Dollars in millions, reported claims in thousands) As of December 31, 2023 Incurred losses and ALAE, net of reinsurance for the years ended December 31, Total of incurred Cumulative number of Accident Unaudited Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2014 $ 503 $ 496 $ 479 $ 476 $ 479 $ 465 $ 469 $ 466 $ 462 $ 464 $ 10 21 2015 533 526 529 516 508 502 504 496 513 14 22 2016 563 574 557 555 554 538 531 525 19 22 2017 610 597 577 571 555 554 553 29 21 2018 650 641 622 588 612 618 55 22 2019 672 643 607 669 682 80 21 2020 674 629 606 593 112 15 2021 714 697 697 265 14 2022 924 902 453 13 2023 950 729 8 Total $ 6,497 Cumulative paid losses and ALAE, net of reinsurance 2014 $ 34 $ 97 $ 172 $ 287 $ 338 $ 390 $ 409 $ 421 $ 437 $ 447 2015 38 108 200 287 362 404 424 453 471 2016 46 126 228 331 395 434 466 485 2017 48 122 234 320 392 437 486 2018 44 148 253 345 441 505 2019 39 134 259 394 503 2020 33 102 242 345 2021 31 123 251 2022 37 141 2023 46 Total 3,680 All outstanding liabilities before 2014, net of reinsurance 91 Liabilities for loss and ALAE, net of reinsurance $ 2,908 The following table shows the workers’ compensation incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency: (Dollars in millions, reported claims in thousands) As of December 31, 2023 Incurred losses and ALAE, net of reinsurance for the years ended December 31, Total of incurred Cumulative number of Accident Unaudited Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2014 $ 261 $ 233 $ 214 $ 203 $ 201 $ 198 $ 197 $ 202 $ 202 $ 203 $ 15 19 2015 246 220 208 195 179 173 173 171 167 20 17 2016 230 218 206 188 183 183 183 181 22 16 2017 218 208 190 183 172 167 160 21 15 2018 222 207 199 186 179 175 26 15 2019 224 215 202 188 178 31 14 2020 204 190 172 153 39 11 2021 202 190 183 42 11 2022 209 205 65 11 2023 221 106 9 Total $ 1,826 Cumulative paid losses and ALAE, net of reinsurance 2014 $ 56 $ 110 $ 134 $ 148 $ 157 $ 162 $ 165 $ 168 $ 171 $ 172 2015 47 93 115 129 134 137 139 139 140 2016 46 97 119 131 141 146 148 150 2017 45 88 106 114 119 122 126 2018 48 95 115 127 133 135 2019 49 94 115 122 129 2020 37 68 82 96 2021 37 82 100 2022 37 76 2023 36 Total 1,160 All outstanding liabilities before 2014, net of reinsurance 316 Liabilities for loss and ALAE, net of reinsurance $ 982 The following table shows the commercial auto incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency: (Dollars in millions, reported claims in thousands) As of December 31, 2023 Incurred losses and ALAE, net of reinsurance for the years ended December 31, Total of incurred Cumulative number of reported claims Accident Unaudited Year 2019 2020 2021 2022 2023 2019 $ 452 $ 451 $ 453 $ 469 $ 471 $ 7 46 2020 424 391 384 377 16 36 2021 470 477 465 51 39 2022 558 569 105 41 2023 550 203 34 Total $ 2,432 Cumulative paid losses and ALAE, net of reinsurance 2019 $ 183 $ 268 $ 333 $ 395 $ 435 2020 154 214 280 328 2021 179 278 346 2022 217 332 2023 216 Total 1,657 All outstanding liabilities before 2019, net of reinsurance 32 Liabilities for loss and ALAE, net of reinsurance $ 807 The following table shows the commercial property incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency: (Dollars in millions, reported claims in thousands) As of December 31, 2023 Incurred losses and ALAE, net of reinsurance for the years ended December 31, Total of incurred Cumulative number of reported claims Accident Unaudited Year 2019 2020 2021 2022 2023 2019 $ 621 $ 606 $ 600 $ 598 $ 592 $ 3 17 2020 855 742 719 716 22 24 2021 607 586 576 5 14 2022 813 779 24 16 2023 833 92 12 Total $ 3,496 Cumulative paid losses and ALAE, net of reinsurance 2019 $ 413 $ 561 $ 579 $ 590 $ 591 2020 489 637 672 687 2021 326 527 558 2022 393 691 2023 506 Total 3,033 All outstanding liabilities before 2019, net of reinsurance 12 Liabilities for loss and ALAE, net of reinsurance $ 475 The following table shows the personal auto incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency: (Dollars in millions, reported claims in thousands) As of December 31, 2023 Incurred losses and ALAE, net of reinsurance for the years ended December 31, Total of incurred Cumulative number of reported claims Accident Unaudited Year 2019 2020 2021 2022 2023 2019 $ 399 $ 383 $ 380 $ 383 $ 381 $ 2 102 2020 305 281 277 277 3 71 2021 350 343 342 6 80 2022 427 418 15 86 2023 466 72 86 Total $ 1,884 Cumulative paid losses and ALAE, net of reinsurance 2019 $ 250 $ 314 $ 346 $ 363 $ 373 2020 186 225 248 264 2021 219 278 304 2022 277 349 2023 304 Total 1,594 All outstanding liabilities before 2019, net of reinsurance 12 Liabilities for loss and ALAE, net of reinsurance $ 302 The following table shows the homeowner incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency: (Dollars in millions, reported claims in thousands) As of December 31, 2023 Incurred losses and ALAE, net of reinsurance for the years ended December 31, Total of incurred Cumulative number of reported claims Accident Unaudited Year 2019 2020 2021 2022 2023 2019 $ 432 $ 421 $ 422 $ 418 $ 418 $ 2 22 2020 497 475 470 471 3 23 2021 495 449 440 4 19 2022 552 505 21 20 2023 742 116 21 Total $ 2,576 Cumulative paid losses and ALAE, net of reinsurance 2019 $ 303 $ 391 $ 407 $ 411 $ 414 2020 326 434 453 464 2021 285 405 424 2022 299 461 2023 468 Total 2,231 All outstanding liabilities before 2019, net of reinsurance 6 Liabilities for loss and ALAE, net of reinsurance $ 351 The following table shows the excess and surplus lines incurred and paid losses and ALAE development by accident year. The table also shows the IBNR reserves plus expected development on reported losses and claim frequency: (Dollars in millions, reported claims in thousands) As of December 31, 2023 Incurred losses and ALAE, net of reinsurance for the years ended December 31, Total of incurred Cumulative number of reported claims Accident Unaudited Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2014 $ 95 $ 82 $ 75 $ 64 $ 60 $ 59 $ 59 $ 58 $ 56 $ 57 $ — 2 2015 96 81 73 67 65 66 65 61 65 — 2 2016 93 87 84 82 90 91 88 89 2 3 2017 104 95 95 94 94 91 94 4 3 2018 116 109 110 108 107 105 6 3 2019 137 135 141 139 142 16 3 2020 172 172 160 152 26 4 2021 217 235 233 66 4 2022 294 280 134 3 2023 328 251 2 Total $ 1,545 Cumulative paid losses and ALAE, net of reinsurance 2014 $ 9 $ 17 $ 27 $ 37 $ 43 $ 48 $ 51 $ 53 $ 55 $ 55 2015 8 19 29 41 51 54 56 58 62 2016 10 21 39 51 62 75 81 83 2017 11 23 41 57 68 77 88 2018 11 26 50 62 75 88 2019 13 34 55 79 102 2020 16 37 56 86 2021 17 45 82 2022 21 46 2023 15 Total 707 All outstanding liabilities before 2014, net of reinsurance 4 Liabilities for loss and ALAE, net of reinsurance $ 842 |
Schedule of Average Annual Percentage Payout of Incurred Claims | The following table shows the average annual percentage payout of incurred losses for the commercial casualty line of business: Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 6 7 8 9 10 Average annual percentage payout 6.4% 13.7% 18.9% 18.4% 13.8% 9.1% 5.7% 4.0% 3.5% 2.1% The following table shows the average annual percentage payout of incurred losses for the workers’ compensation line of business: Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 6 7 8 9 10 Average annual percentage payout 24.3% 25.2% 11.3% 6.6% 3.9% 2.1% 1.6% 0.8% 0.8% 0.9% The following table shows the average annual percentage payout of incurred losses for the commercial auto line of business. Commercial auto includes both physical damage and liability losses. A majority of the incurred losses paid after year 2 are the result of liability losses. Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 Average annual percentage payout 39.1% 18.9% 15.3% 12.8% 8.6% The following table shows the average annual percentage payout of incurred losses for the commercial property line of business: Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 Average annual percentage payout 61.1% 29.7% 4.5% 2.0% —% The following table shows the average annual percentage payout of incurred losses for the personal auto line of business. Personal auto includes both physical damage and liability losses. A majority of the incurred losses paid after year 2 are the result of liability losses. Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 Average annual percentage payout 65.6% 16.4% 8.2% 5.0% 2.4% The following table shows the average annual percentage payout of incurred losses for the homeowner line of business: Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 Average annual percentage payout 65.8% 25.8% 4.1% 1.6% 0.6% The following table shows the average annual percentage payout of incurred losses for the excess and surplus lines insurance segment. Excess and surplus lines consist mostly of commercial casualty and commercial property coverages. A majority of the incurred losses paid after year 2 are the result of commercial casualty losses. Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 6 7 8 9 10 Average annual percentage payout 10.1% 13.2% 17.4% 16.2% 13.1% 10.4% 6.3% 2.7% 4.3% 1.1% |
Life Policy And Investment Co_2
Life Policy And Investment Contract Reserves (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Liability for Future Policy Benefit, before Reinsurance [Abstract] | |
Reserves for Loss and Loss Adjustment Expenses | The following table summarizes our life policy and investment contract reserves and provides a reconciliation of the balances described in the below tables to those in the consolidated balance sheets: (Dollars in millions) At December 31, 2023 2022 Life policy reserves: Term $ 1,066 $ 961 Whole life 434 408 Other 97 94 Subtotal 1,597 1,463 Investment contract reserves: Deferred annuities 656 734 Universal life 585 578 Structured settlements 123 129 Other 107 111 Subtotal 1,471 1,552 Total life policy and investment contract reserves $ 3,068 $ 3,015 |
Adopted Accounting Updates | The following table illustrates the effect of adopting ASU 2018-12 in the consolidated balance sheets : (Dollars in millions) December 31, 2023 December 31, 2022 As originally reported As adjusted Difference Reinsurance recoverable $ 651 $ 640 $ 665 $ 25 Prepaid reinsurance premiums 55 79 51 (28) Deferred policy acquisition costs 1,093 1,014 1,013 (1) Total assets 32,769 29,736 29,732 (4) Life policy and investment contract reserves 3,068 3,059 3,015 (44) Deferred income tax 1,324 1,045 1,054 9 Total liabilities 20,671 19,205 19,170 (35) Retained earnings 13,084 11,702 11,711 9 Accumulated other comprehensive income (435) (636) (614) 22 Total shareholders' equity 12,098 10,531 10,562 31 Total liabilities and shareholders' equity 32,769 29,736 29,732 (4) The following table illustrates the effect of adopting ASU 2018-12 in the consolidated statements of income and consolidated statements of comprehensive income: (Dollars in millions, except per share data) Years ended December 31, 2023 2022 2021 As originally reported As adjusted Difference As originally reported As adjusted Difference Earned premiums $ 7,958 $ 7,219 $ 7,225 $ 6 $ 6,482 $ 6,478 $ (4) Insurance losses and contract holders' benefits 5,274 5,012 5,019 7 3,936 3,909 (27) Underwriting, acquisition and insurance expenses 2,384 2,162 2,162 — 1,951 1,946 (5) Deferred income tax expense 223 (355) (355) — 477 483 6 Net Income (Loss) 1,843 (486) (487) (1) 2,946 2,968 22 Change in life policy reserves, reinsurance recoverable and other, net of tax (34) 1 374 373 9 92 83 Other comprehensive income (loss) 179 (1,284) (911) 373 (121) (38) 83 Comprehensive Income (Loss) 2,022 (1,770) (1,398) 372 2,825 2,930 105 Net income (loss) per share: Basic $ 11.74 $ (3.06) $ (3.06) $ — $ 18.29 $ 18.43 $ 0.14 Diluted 11.66 (3.06) (3.06) — 18.10 18.24 0.14 The table below shows the ASU 2018-12 adoption impacts to the life policy and investment contract reserves as of January 1, 2021, (transition date), pre-tax: (Dollars in millions) Term Whole life Deferred annuity Universal life Other Total At January 1, 2021 Balance, pre-adoption at December 31, 2020 $ 901 $ 363 $ 761 $ 567 $ 323 $ 2,915 Removal of shadow adjustments — — — — 13 13 Net premiums in excess of gross premiums 14 1 — — — 15 Remeasurement at market value discount rates 372 245 — — — 617 Balance, post-adoption at January 1, 2021 $ 1,287 $ 609 $ 761 $ 567 $ 336 $ 3,560 The table below shows the ASU 2018-12 adoption impacts to the life reinsurance recoverable asset as of January 1, 2021, pre-tax: (Dollars in millions) Term Whole life Deferred annuity Universal life Other Total At January 1, 2021 Balance, pre-adoption at December 31, 2020 $ 113 $ 26 $ — $ — $ 78 $ 217 Remeasurement at market value discount rates 29 18 — — — 47 Other adjustments 20 1 — 2 — 23 Balance, post-adoption at January 1, 2021 $ 162 $ 45 $ — $ 2 $ 78 $ 287 |
Liability for Future Policy Benefit, Activity | he balances and changes in the term and whole life policy reserves included in life policy and investment contract reserves is as follows: (Dollars in millions) Years ended December 31, 2023 2022 2021 Term Whole life Term Whole life Term Whole life Present value of expected net premiums: Balance, beginning of period $ 1,643 $ 208 $ 1,801 $ 241 $ 1,935 $ 234 Beginning balance at original discount rate 1,708 217 1,503 201 1,503 182 Effect of changes in cash flow assumptions (7) (7) 123 (5) (177) (3) Effect of actual variances from expected experience (20) 3 (1) — 28 2 Adjusted beginning of period balance 1,681 213 1,625 196 1,354 181 Issuances 143 31 194 40 248 39 Interest accrual 72 9 65 8 62 8 Net premiums collected (184) (28) (176) (27) (161) (27) Ending balance at original discount rate 1,712 225 1,708 217 1,503 201 Effect of changes in discount rate assumptions (12) (2) (65) (9) 298 40 Balance, end of period 1,700 223 1,643 208 1,801 241 Present value of expected future policy benefits: Balance, beginning of period 2,584 614 2,993 826 3,222 843 Beginning balance at original discount rate 2,692 607 2,425 577 2,418 545 Effect of changes in cash flow assumptions 2 (10) 140 (7) (181) (4) Effect of actual variances from expected experience (24) 3 8 (1) 31 2 Adjusted beginning of period balance 2,670 600 2,573 569 2,268 543 Issuances 143 30 194 40 248 39 Interest accrual 121 31 112 29 109 29 Benefits paid (169) (33) (187) (31) (200) (34) Ending balance at original discount rate 2,765 628 2,692 607 2,425 577 Effect of changes in discount rate assumptions (14) 29 (108) 7 568 249 Balance, end of period 2,751 657 2,584 614 2,993 826 Net liability for future policy benefits: Present value of expected future policy benefits less expected net premiums 1,051 434 941 406 1,192 585 Impact of flooring at cohort level 15 — 20 2 14 — Net life policy reserves 1,066 434 961 408 1,206 585 Less reinsurance recoverable at original discount rate (97) (23) (99) (25) (107) (27) Less effect of discount rate assumption changes on reinsurance recoverable (10) (5) (9) (5) (19) (15) Net life policy reserves, after reinsurance recoverable $ 959 $ 406 $ 853 $ 378 $ 1,080 $ 543 Weighted-average duration of the net life policy reserves 11 16 11 16 12 18 The total impact of flooring at cohort level in the above table includes the effect of discount rate assumption changes of $2 million, $9 million and $6 million at December 31, 2023, 2022 and 2021, respectively. The following table shows the amount of undiscounted and discounted expected future benefit payments and expected gross premiums for our term and whole life policies: (Dollars in millions) At December 31, 2023 2022 Undiscounted Discounted Undiscounted Discounted Term Expected future benefit payments $ 4,791 $ 2,751 $ 4,655 $ 2,584 Expected future gross premiums 4,374 2,652 4,436 2,582 Whole life Expected future benefit payments $ 1,648 $ 657 $ 1,562 $ 614 Expected future gross premiums 659 409 606 368 The following table shows the amount of revenue and interest recognized in the consolidated statements of income related to our term and whole life policies: (Dollars in millions) Years ended December 31, 2023 2022 2021 Gross premiums Term $ 289 $ 280 $ 270 Whole life 52 47 47 Total $ 341 $ 327 $ 317 Interest accretion Term $ 49 $ 47 $ 47 Whole life 22 21 21 Total $ 71 $ 68 $ 68 Adverse development that resulted in an immediate charge to income due to net premiums exceeding gross premiums was immaterial for the years ended December 31, 2023, 2022 and 2021, respectively. The following table shows the weighted-average interest rate for our term and whole life products: At December 31, 2023 2022 Term Interest accretion rate 5.28 % 5.38 % Current discount rate 4.81 5.24 Whole life Interest accretion rate 5.90 % 5.96 % Current discount rate 5.10 5.35 The discount rate assumption was developed by calculating forward rates from market yield curves of upper-medium grade fixed-income instruments. |
Policyholder Account Balance | The following table shows the balances and changes in policyholders' account balances included in investment contract reserves: (Dollars in millions) Years ended December 31, 2023 2022 2021 Deferred annuity Universal life Deferred annuity Universal life Deferred annuity Universal life Balance, beginning of period $ 734 $ 457 $ 763 $ 454 $ 761 $ 451 Premiums received 44 39 29 39 44 39 Policy charges — (39) — (39) — (38) Surrenders and withdrawals (130) (13) (62) (11) (47) (10) Benefit payments (14) (6) (18) (5) (17) (7) Interest credited 22 19 22 19 22 19 Balance, end of period $ 656 $ 457 $ 734 $ 457 $ 763 $ 454 Weighted average crediting rate 3.51 % 4.30 % 3.36 % 4.27 % 2.88 % 4.25 % Net amount at risk $ — $ 3,949 $ — $ 4,082 $ — $ 4,198 Cash surrender value 651 426 729 424 757 419 |
Policyholder Account Balance, Guaranteed Minimum Crediting Rate | The following table shows the balance of account values by range of guaranteed minimum crediting rates, in basis points, and the related range of the difference between rates being credited to policyholders and the respective guaranteed minimums for our deferred annuity and universal life contracts: (Dollars in millions) At guaranteed minimum 1 to 50 basis points above 51-150 basis points above Greater than 150 basis points Total At December 31, 2023 Deferred annuity 1.00-3.00% $ 5 $ 361 $ 16 $ 226 $ 608 3.01-4.00% 48 — — — 48 Total $ 53 $ 361 $ 16 $ 226 $ 656 Universal life 1.00-3.00% $ 55 $ 4 $ 57 $ 4 $ 120 3.01-4.00% 49 5 — — 54 Greater than 4.00% 283 — — — 283 Total $ 387 $ 9 $ 57 $ 4 $ 457 At December 31, 2022 Deferred annuity 1.00-3.00% $ 5 $ 446 $ 18 $ 214 $ 683 3.01-4.00% 51 — — — 51 Total $ 56 $ 446 $ 18 $ 214 $ 734 Universal life 1.00-3.00% $ 61 $ 46 $ 8 $ 2 $ 117 3.01-4.00% 52 — — — 52 Greater than 4.00% 288 — — — 288 Total $ 401 $ 46 $ 8 $ 2 $ 457 |
Additional Liability, Long-Duration Insurance | The following table shows the balances and changes in the other additional liability related to the no-lapse guarantees contained within our universal life contracts: (Dollars in millions) Years ended December 31, 2023 2022 2021 Balance, beginning of period $ 121 $ 133 $ 116 Balance, beginning of period before shadow reserve adjustments 123 131 113 Effect of changes in cash flow assumptions (6) (1) 4 Effect of actual variances from expected experience — 6 — Adjusted beginning of period balance 117 136 117 Interest accrual 4 4 4 Excess death benefits (6) (18) (4) Attributed assessments 12 12 12 Effect of changes in interest rate assumptions 2 (11) 2 Balance, end of period before shadow reserve adjustments 129 123 131 Shadow reserve adjustments (1) (2) 2 Balance, end of period 128 121 133 Less reinsurance recoverable, end of period 6 5 3 Net other additional liability, after reinsurance recoverable $ 134 $ 126 $ 136 Weighted-average duration of the other additional liability 32 34 35 |
Separate Account, Liability | The following table shows balances and changes in separate account balances during the period: (Dollars in millions) Years ended December 31, 2023 2022 2021 Balance, beginning of period $ 892 $ 959 $ 952 Interest credited before policy charges 42 38 37 Change in unrealized gains and losses impacting separate account liabilities — (85) (22) Benefit payments (10) (15) (6) Other 1 (5) (2) Balance, end of period $ 925 $ 892 $ 959 Cash surrender value $ 917 $ 890 $ 870 |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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) Years ended December 31, 2023 2022 2021 Property casualty: Deferred policy acquisition costs asset, January 1 $ 682 $ 602 $ 542 Capitalized deferred policy acquisition costs 1,488 1,383 1,211 Amortized deferred policy acquisition costs (1,421) (1,303) (1,151) Deferred policy acquisition costs asset, December 31 $ 749 $ 682 $ 602 Life: Deferred policy acquisition costs asset, January 1 $ 331 $ 314 $ 296 Capitalized deferred policy acquisition costs 42 44 43 Amortized deferred policy acquisition costs (29) (27) (25) Deferred policy acquisition costs asset, December 31 $ 344 $ 331 $ 314 Consolidated: Deferred policy acquisition costs asset, January 1 $ 1,013 $ 916 $ 838 Capitalized deferred policy acquisition costs 1,530 1,427 1,254 Amortized deferred policy acquisition costs (1,450) (1,330) (1,176) Deferred policy acquisition costs asset, December 31 $ 1,093 $ 1,013 $ 916 |
Life Deferred Policy Acquisition Costs by Product | The table below shows the life deferred policy acquisition costs asset by product: (Dollars in millions) Year ended December 31, 2023 Term Whole life Deferred annuity Universal life Total Balance, beginning of period $ 228 $ 43 $ 7 $ 53 $ 331 Capitalized deferred policy acquisition costs 30 8 2 2 42 Amortized deferred policy acquisition costs (22) (3) (1) (3) (29) Balance, end of period $ 236 $ 48 $ 8 $ 52 $ 344 Year ended December 31, 2022 Balance, beginning of period $ 215 $ 38 $ 7 $ 54 $ 314 Capitalized deferred policy acquisition costs 34 7 1 2 44 Amortized deferred policy acquisition costs (21) (2) (1) (3) (27) Balance, end of period $ 228 $ 43 $ 7 $ 53 $ 331 Year ended December 31, 2021 Balance, beginning of period $ 201 $ 35 $ 6 $ 54 $ 296 Capitalized deferred policy acquisition costs 35 5 1 2 43 Amortized deferred policy acquisition costs (21) (2) — (2) (25) Balance, end of period $ 215 $ 38 $ 7 $ 54 $ 314 |
Long-Term Debt And Lease Obli_2
Long-Term Debt And Lease Obligation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Long-Term Debt and Lease Obligation [Abstract] | |
Schedule of Long-term Debt | This table summarizes the principal amounts of our long-term debt excluding unamortized discounts, none of which are encumbered by rating triggers: (Dollars in millions) Book value Principal amount Interest rate Year of At December 31, At December 31, 2023 2022 2023 2022 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 372 371 374 374 Total $ 790 $ 789 $ 793 $ 793 |
Lease Obligations Over Next Five Years and Thereafter | interest for finance and operating leases: (Dollars in millions) Years ended December 31, 2024 2025 2026 2027 2028 2029 and thereafter Finance lease obligations $ 16 $ 12 $ 9 $ 7 $ 6 $ 3 Operating lease obligations 3 3 3 2 1 — Total lease obligations $ 19 $ 15 $ 12 $ 9 $ 7 $ 3 |
Other Operating and Finance Lease Disclosure | The following table provides lease cost and other information: (Dollars in millions) Years ended December 31, 2023 2022 2021 Lease cost: Finance lease cost $ 14 $ 14 $ 15 Operating lease cost 3 5 4 Total lease cost $ 17 $ 19 $ 19 Other information finance leases: Finance cash outflows $ 16 $ 15 $ 15 Weighted average discount rate 4.35 % 3.20 % 2.46 % Weighted average remaining lease term in years 3.89 3.49 3.45 Other information operating leases: Operating cash outflows $ 3 $ 4 $ 4 Weighted average discount rate 4.66 % 3.44 % 2.86 % Weighted average remaining lease term in years 4.30 4.53 4.37 |
Shareholders' Equity And Divi_2
Shareholders' Equity And Dividend Restrictions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Shareholders Equity And Dividend Restrictions [Abstract] | |
Change In AOCI Includes Changes In Unrealized Gains And Losses On Investments And Pension Obligations | The changes from the beginning of year to the end of year are the result of changes to other comprehensive income or loss (OCI). (Dollars in millions) 2023 2022 2021 Before Income Net Before Income Net Before Income Net Investments: AOCI, January 1 $ (847) $ (182) $ (665) $ 792 $ 165 $ 627 $ 1,026 $ 215 $ 811 OCI before investment gains and losses, net, recognized in net income 255 55 200 (1,642) (347) (1,295) (204) (44) (160) Investment gains and losses, net, recognized in net income 22 4 18 3 — 3 (30) (6) (24) OCI 277 59 218 (1,639) (347) (1,292) (234) (50) (184) AOCI, December 31 $ (570) $ (123) $ (447) $ (847) $ (182) $ (665) $ 792 $ 165 $ 627 Pension obligations: AOCI, January 1 $ 36 $ 9 $ 27 $ 27 $ 7 $ 20 $ (41) $ (7) $ (34) OCI excluding amortization recognized in net income 2 1 1 12 2 10 62 12 50 Amortization recognized in net income (8) (2) (6) (3) — (3) 6 2 4 OCI (6) (1) (5) 9 2 7 68 14 54 AOCI, December 31 $ 30 $ 8 $ 22 $ 36 $ 9 $ 27 $ 27 $ 7 $ 20 Life policy reserves, reinsurance recoverable and other: AOCI, January 1 $ 29 $ 5 $ 24 $ (444) $ (94) $ (350) $ (10) $ (2) $ (8) Cumulative effect of change in accounting for long duration insurance contracts — — — — — — (550) (116) (434) Adjusted AOCI, January 1 29 5 24 (444) (94) (350) (560) (118) (442) OCI before investment gains and losses, net, recognized in net income (42) (8) (34) 473 99 374 116 24 92 Investment gains and losses, net, recognized in net income — — — — — — — — — OCI (42) (8) (34) 473 99 374 116 24 92 AOCI, December 31 $ (13) $ (3) $ (10) $ 29 $ 5 $ 24 $ (444) $ (94) $ (350) Summary of AOCI: AOCI, January 1 $ (782) $ (168) $ (614) $ 375 $ 78 $ 297 $ 975 $ 206 $ 769 Cumulative effect of change in accounting for long duration insurance contracts — — — — — — (550) (116) (434) Adjusted AOCI, January 1 (782) (168) (614) 375 78 297 425 90 335 Investments OCI 277 59 218 (1,639) (347) (1,292) (234) (50) (184) Pension obligations OCI (6) (1) (5) 9 2 7 68 14 54 Life policy reserves, reinsurance recoverable and other OCI (42) (8) (34) 473 99 374 116 24 92 Total OCI 229 50 179 (1,157) (246) (911) (50) (12) (38) AOCI, December 31 $ (553) $ (118) $ (435) $ (782) $ (168) $ (614) $ 375 $ 78 $ 297 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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) Years ended December 31, 2023 2022 2021 Direct written premiums $ 7,784 $ 7,002 $ 6,229 Assumed written premiums 597 619 515 Ceded written premiums (335) (314) (265) Net written premiums $ 8,046 $ 7,307 $ 6,479 Direct earned premiums $ 7,407 $ 6,677 $ 5,996 Assumed earned premiums 569 561 443 Ceded earned premiums (331) (314) (255) Earned premiums $ 7,645 $ 6,924 $ 6,184 Direct incurred loss and loss expenses $ 4,843 $ 4,495 $ 3,352 Assumed incurred loss and loss expenses 280 396 366 Ceded incurred loss and loss expenses (165) (175) (122) Incurred loss and loss expenses $ 4,958 $ 4,716 $ 3,596 |
Life Insurance Assumed And Ceded Business | The table below summarizes our consolidated life insurance earned premiums and contract holders' benefits incurred: (Dollars in millions) Years ended December 31, 2023 2022 2021 Direct earned premiums $ 394 $ 379 $ 370 Ceded earned premiums (81) (78) (76) Earned premiums $ 313 $ 301 $ 294 Direct contract holders' benefits incurred $ 391 $ 394 $ 380 Ceded contract holders' benefits incurred (75) (91) (67) Contract holders' benefits incurred $ 316 $ 303 $ 313 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Components Of Deferred Tax Assets And Liabilities | The significant components of deferred tax assets and liabilities included in the consolidated balance sheets at December 31 were as follows: (Dollars in millions) At December 31, 2023 2022 Deferred tax assets: Unearned premiums $ 165 $ 148 Loss and loss expense reserves 120 106 Net operating loss on international earnings 26 28 Deferred international earnings — 16 Other 70 55 Deferred tax assets before valuation allowance 381 353 Valuation allowance for international operations — 31 Deferred tax assets net of valuation allowance 381 322 Deferred tax liabilities: Investment gains and other, net 1,290 992 Deferred acquisition costs 184 171 Life policy reserves 104 121 Deferred international earnings 21 — Investments 35 31 Other 71 61 Total gross deferred tax liabilities 1,705 1,376 Net deferred income tax liability $ 1,324 $ 1,054 |
Schedule of Income before Income Tax | For financial reporting purposes, income (loss) before income taxes includes the following components: (Dollars in millions) For the years ended December 31, 2023 2022 2021 United States $ 2,195 $ (719) $ 3,672 International 81 25 26 Total income (loss) before income taxes $ 2,276 $ (694) $ 3,698 |
Schedule of The Provision (Benefit) of Income Taxes | The provision (benefit) for income taxes consists of: (Dollars in millions) For the years ended December 31, 2023 2022 2021 Provision (benefit) for income taxes: Current – United States federal $ 209 $ 148 $ 248 International 1 — (1) Total current 210 148 247 Deferred – United States federal 216 (355) 483 International 7 — — Total deferred 223 (355) 483 Total provision (benefit) for income taxes $ 433 $ (207) $ 730 |
Differences Between The 35 Percent 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) Years ended December 31, 2023 2022 2021 Tax at statutory rate: $ 478 21.0 % $ (146) 21.0 % $ 777 21.0 % Increase (decrease) resulting from: Tax-exempt income from municipal bonds (21) (0.9) (20) 2.9 (20) (0.5) Dividend received exclusion (22) (1.0) (21) 3.0 (20) (0.5) Release of unrecognized tax benefit — — (34) 4.9 — — Other (2) (0.1) 14 (2.0) (7) (0.3) Provision (benefit) for income taxes $ 433 19.0 % $ (207) 29.8 % $ 730 19.7 % |
Reconciliation of Cincinnati Global Valuation Allowance | The following is a tabular reconciliation of the total amounts of our Cincinnati Global valuation allowance: (Dollars in millions) Years ended December 31, 2023 2022 2021 Valuation allowance, January 1 $ 31 $ 53 $ 56 Current year operations (31) (22) (3) Valuation allowance, December 31 $ — $ 31 $ 53 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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) Years ended December 31, 2023 2022 2021 Numerator: Net income (loss)—basic and diluted $ 1,843 $ (487) $ 2,968 Denominator: Basic weighted-average common shares outstanding 157.0 158.8 161.0 Effect of share-based awards: Stock options 0.7 — 1.1 Nonvested shares 0.4 — 0.6 Diluted weighted-average shares 158.1 158.8 162.7 Earnings (loss) per share: Basic $ 11.74 $ (3.06) $ 18.43 Diluted 11.66 (3.06) 18.24 Number of anti-dilutive share-based awards 1.3 2.2 0.8 |
Employee Retirement Benefits (T
Employee Retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Weighted-Average Assumptions Used for Benefit Obligations | This is a summary of the weighted-average assumptions used to determine our benefit obligations at December 31 for the plans: Qualified Pension Plan SERP 2023 2022 2023 2022 Discount rate 5.04 % 5.34 % 5.11 % 5.42 % Rate of compensation increase 4.00 4.50 4.00 4.50 |
Assumptions of Net Benefit Costs | This is a summary of the weighted-average assumptions used to determine our net periodic benefit cost for the plans: Qualified Pension Plan SERP 2023 2022 2021 2023 2022 2021 Discount rate 5.34 % 2.97 % 2.68 % 5.42 % 2.90 % 2.52 % Expected return on plan assets 7.00 7.00 7.00 n/a n/a n/a Rate of compensation increase 4.50 2.25-3.25 2.25-3.25 4.50 2.25-3.25 2.25-3.25 |
Benefit Obligation Activity Using An Actuarial Measurement Date For Qualified Plan And SERP | Benefit obligation activity using an actuarial measurement date for our qualified pension plan and SERP at December 31 follows: (Dollars in millions) At December 31, 2023 2022 Change in projected benefit obligation: Benefit obligation, January 1 $ 282 $ 362 Service cost 6 9 Interest cost 13 10 Actuarial loss (gain) 10 (70) Benefits paid (48) (29) Projected benefit obligation, December 31 $ 263 $ 282 Change in plan assets: Fair value of plan assets, January 1 $ 332 $ 397 Actual return on plan assets 33 (36) Benefits paid (48) (29) Fair value of plan assets, December 31 $ 317 $ 332 Funded status, December 31 $ 54 $ 50 Accumulated benefit obligation $ 247 $ 264 |
Reconciliation Of The Funded Status For Qualified Plan And SERP | A reconciliation follows of the funded status for our qualified plan and SERP at the end of the measurement period to the amounts recognized in the consolidated balance sheets at December 31: (Dollars in millions) At December 31, 2023 2022 Pension amounts recognized in the consolidated balance sheets: Other assets $ 54 $ 50 Total $ 54 $ 50 Pension amounts recognized in accumulated other comprehensive income: Net actuarial gain $ (31) $ (36) Prior service cost 1 — Total $ (30) $ (36) |
Components Of Net Periodic Benefit Cost As Well As Other Changes In Plan Assets And Benefit Obligations Recognized In Other Comprehensive Income For Qualified Plan And SERP | Below are the components of our net periodic benefit cost, as well as other changes in plan assets and benefit obligations recognized in other comprehensive income for our qualified plan and SERP at December 31: (Dollars in millions) Years ended December 31, 2023 2022 2021 Net periodic benefit cost: Service cost $ 6 $ 9 $ 10 Non-service costs (benefit): Interest cost 13 10 10 Expected return on plan assets (21) (22) (21) Amortization of actuarial (gain) loss and prior service cost (2) — 6 Other (6) (3) 1 Net periodic benefit cost $ (10) $ (6) $ 6 Other changes in plan assets and benefit obligations recognized in other Current year actuarial gain $ (2) $ (12) $ (62) Amortization and recognition of actuarial gain (loss) 8 3 (7) Current year prior service cost — — 1 Total recognized in other comprehensive (income) loss $ 6 $ (9) $ (68) Total recognized in net periodic benefit cost and other comprehensive $ (4) $ (15) $ (62) |
Fair Value Hierarchy Of Assets Measured At Fair Value On A Recurring Basis | (Dollars in millions) Level 1 Level 2 Level 3 Total At December 31, 2023 Fixed maturities, available for sale: United States government $ 22 $ — $ — $ 22 Corporate — 4 — 4 States, municipalities and political subdivisions — 6 — 6 Total fixed maturities, available for sale 22 10 — 32 Common equities 269 — — 269 Total $ 291 $ 10 $ — $ 301 At December 31, 2022 Fixed maturities, available for sale: United States government $ 31 $ — $ — $ 31 Corporate — 7 — 7 States, municipalities and political subdivisions — 6 — 6 Total fixed maturities, available for sale 31 13 — 44 Common equities 245 — — 245 Total $ 276 $ 13 $ — $ 289 |
Expected Future Benefit Payments For Qualified Plan And SERP | We expect to make the following benefit payments for our qualified plan and SERP, reflecting expected future service: (Dollars in millions) Years ended December 31, 2024 2025 2026 2027 2028 2029 - 2033 Expected future benefit payments $ 37 $ 27 $ 30 $ 30 $ 31 $ 128 |
Statutory Accounting Informat_2
Statutory Accounting Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Staturory Accounting Information [Abstract] | |
Statutory Net Income And Statutory Surplus | The statutory net income and statutory capital and surplus are presented below: (Dollars in millions) Net income Capital and surplus Years ended December 31, At December 31, 2023 2022 2021 2023 2022 The Cincinnati Insurance Company $ 607 $ 520 $ 929 $ 7,294 $ 6,512 The Cincinnati Casualty Company 13 14 15 517 495 The Cincinnati Indemnity Company 3 4 5 130 126 The Cincinnati Specialty Underwriters Insurance Company 76 61 47 611 542 The Cincinnati Life Insurance Company 90 64 41 414 326 |
Share-Based Associate Compens_2
Share-Based Associate Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Stock Option Information | Below is a summary of option information for the year 2023: (Dollars in millions, except exercise price. Shares in thousands) Shares Weighted- Aggregate Weighted-average Outstanding option shares at January 1, 2023 3,608 $ 86.21 Granted 384 125.57 Exercised (280) 59.98 Forfeited or expired (65) 86.73 Outstanding option shares at December 31, 2023 3,647 92.36 $ 62 5.43 years Options exercisable at end of period 2,855 $ 84.68 $ 61 4.59 years |
Restricted Stock Unit Information | elow is a summary of service-based and performance-based share information, assuming a target payout for performance-based shares, for the year 2023: (Shares in thousands) Service-based Weighted- Performance-based Weighted- Nonvested at January 1, 2023 523 $ 102.26 155 $ 124.69 Granted 174 117.21 70 169.50 Vested (179) 104.61 — — Forfeited or canceled (22) 105.73 (38) 111.77 Nonvested at December 31, 2023 496 106.52 187 144.05 |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Assumptions Used In Option Grants Issued | The following weighted average assumptions were used in determining fair value for option grants issued: 2023 2022 2021 Weighted-average expected term 8-9 years 7-9 years 7-9 years Expected volatility 28.25-29.61% 26.34-28.87% 25.56-27.81% Dividend yield 2.39% 2.23% 2.62% Risk-free rates 3.98-3.99% 1.90-1.92% 0.97-1.26% Weighted-average fair value of options granted during the period $38.22 $30.34 $19.64 |
Performance Based Shares | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Assumptions Used In Option Grants Issued | he following assumptions were used in determining fair value for performance-based grants issued: 2023 2022 2021 Expected term 2.86 years 2.86 years 2.85 years Expected volatility 25.98-47.73% 30.09-49.28% 29.50-47.26% Dividend yield 2.37% 2.19% 2.62% Risk-free rates 4.32% 1.64% 0.20% |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment information is summarized in the following table: (Dollars in millions) Years ended December 31, 2023 2022 2021 Revenues: Commercial lines insurance Commercial casualty $ 1,481 $ 1,416 $ 1,270 Commercial property 1,264 1,136 1,043 Commercial auto 862 842 794 Workers' compensation 277 284 268 Other commercial 380 346 299 Commercial lines insurance premiums 4,264 4,024 3,674 Fee revenues 4 4 4 Total commercial lines insurance 4,268 4,028 3,678 Personal lines insurance Personal auto 721 626 609 Homeowner 1,044 829 726 Other personal 279 234 207 Personal lines insurance premiums 2,044 1,689 1,542 Fee revenues 4 4 4 Total personal lines insurance 2,048 1,693 1,546 Excess and surplus lines insurance 542 485 398 Fee revenues 3 2 2 Total excess and surplus lines insurance 545 487 400 Life insurance premiums 313 301 294 Fee revenues 10 4 5 Total life insurance 323 305 299 Investments Investment income, net of expenses 894 781 714 Investment gains and losses, net 1,127 (1,467) 2,409 Total investment revenue 2,021 (686) 3,123 Other Premiums 795 726 570 Other 13 10 10 Total other revenue 808 736 580 Total revenues $ 10,013 $ 6,563 $ 9,626 Income (loss) before income taxes: Insurance underwriting results Commercial lines insurance $ 168 $ 38 $ 598 Personal lines insurance (4) 18 97 Excess and surplus lines insurance 54 48 44 Life insurance 41 27 12 Investments 1,900 (795) 3,018 Other 117 (30) (71) Total income (loss) before income taxes $ 2,276 $ (694) $ 3,698 December 31, December 31, Identifiable assets: 2023 2022 Property casualty insurance $ 5,294 $ 5,178 Life insurance 1,562 1,518 Investments 24,999 22,133 Other 914 903 Total $ 32,769 $ 29,732 |
Summary Of Significant Accoun_4
Summary Of Significant Accounting Policies (Narrative) (Details) | 12 Months Ended | ||||
Dec. 31, 2023 USD ($) subsidiary reporting_locations independent_insurance_agency state $ / shares | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2021 USD ($) $ / shares | Dec. 31, 2008 | Dec. 31, 2020 USD ($) | |
Significant Accounting Policies | |||||
Income Tax Examination, Penalties Expense | $ 0 | ||||
Number of operating subsidaries | subsidiary | 2 | ||||
Number of independent insurance agencies | independent_insurance_agency | 2,080 | ||||
Number of reporting locations | reporting_locations | 3,116 | ||||
Number of states in which entity operates | state | 46 | ||||
Excess (deficit) of Separate Account Fair Value over (under) Contract Holder Account Value | $ (43,000,000) | $ (64,000,000) | |||
Other invested assets | 577,000,000 | 452,000,000 | |||
Depreciation expense | 30,000,000 | 33,000,000 | $ 33,000,000 | ||
Land, building and equipment impairments | 0 | 0 | 0 | ||
Premium Receivable, Allowance for Credit Loss | 16,000,000 | 13,000,000 | 14,000,000 | ||
Minimum participant age to elect | 40 years | ||||
Reinsurance recoverable | 651,000,000 | 665,000,000 | |||
Prepaid reinsurance premiums | 55,000,000 | 51,000,000 | |||
Deferred policy acquisition costs | 1,093,000,000 | 1,013,000,000 | 916,000,000 | $ 838,000,000 | |
Total assets | 32,769,000,000 | 29,732,000,000 | |||
Life policy and investment contract reserves | 3,068,000,000 | 3,015,000,000 | |||
Deferred federal income tax | 1,324,000,000 | 1,054,000,000 | |||
Total liabilities | 20,671,000,000 | 19,170,000,000 | |||
Retained earnings | 13,084,000,000 | 11,711,000,000 | |||
Accumulated other comprehensive income | (435,000,000) | (614,000,000) | |||
Total shareholders' equity | 12,098,000,000 | 10,562,000,000 | 12,764,000,000 | ||
Total liabilities and shareholders' equity | 32,769,000,000 | 29,732,000,000 | |||
Earned premiums | 7,958,000,000 | 7,225,000,000 | 6,478,000,000 | ||
Insurance losses and contract holders' benefits | 5,274,000,000 | 5,019,000,000 | 3,909,000,000 | ||
Underwriting, acquisition and insurance expenses | 2,384,000,000 | 2,162,000,000 | 1,946,000,000 | ||
Deferred | 223,000,000 | (355,000,000) | 483,000,000 | ||
Net Income (Loss) | 1,843,000,000 | (487,000,000) | 2,968,000,000 | ||
Change in life policy reserves, reinsurance recoverable and other, net of tax (benefit) of $(8), $99 and $24, respectively | (34,000,000) | 374,000,000 | 92,000,000 | ||
Other Comprehensive Income (Loss), Net of Tax | 179,000,000 | (911,000,000) | (38,000,000) | ||
Comprehensive Income (Loss) | $ 2,022,000,000 | $ (1,398,000,000) | $ 2,930,000,000 | ||
Net income (loss)—basic | $ / shares | $ 11.74 | $ (3.06) | $ 18.43 | ||
Net income (loss)—diluted | $ / shares | $ 11.66 | $ (3.06) | $ 18.24 | ||
Accounting Standards Update 2018-12 | |||||
Significant Accounting Policies | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 31,000,000 | ||||
Reinsurance recoverable | 665,000,000 | 287,000,000 | |||
Prepaid reinsurance premiums | 51,000,000 | ||||
Deferred policy acquisition costs | 1,013,000,000 | 296,000,000 | |||
Total assets | 29,732,000,000 | ||||
Life policy and investment contract reserves | 3,015,000,000 | ||||
Deferred federal income tax | 1,054,000,000 | ||||
Total liabilities | 19,170,000,000 | ||||
Retained earnings | 11,711,000,000 | ||||
Accumulated other comprehensive income | (614,000,000) | ||||
Total shareholders' equity | 10,562,000,000 | ||||
Total liabilities and shareholders' equity | 29,732,000,000 | ||||
Earned premiums | 7,225,000,000 | $ 6,478,000,000 | |||
Insurance losses and contract holders' benefits | 5,019,000,000 | 3,909,000,000 | |||
Underwriting, acquisition and insurance expenses | 2,162,000,000 | 1,946,000,000 | |||
Deferred | (355,000,000) | 483,000,000 | |||
Net Income (Loss) | (487,000,000) | 2,968,000,000 | |||
Change in life policy reserves, reinsurance recoverable and other, net of tax (benefit) of $(8), $99 and $24, respectively | 374,000,000 | 92,000,000 | |||
Other Comprehensive Income (Loss), Net of Tax | (911,000,000) | (38,000,000) | |||
Comprehensive Income (Loss) | $ (1,398,000,000) | $ 2,930,000,000 | |||
Net income (loss)—basic | $ / shares | $ (3.06) | $ 18.43 | |||
Net income (loss)—diluted | $ / shares | $ (3.06) | $ 18.24 | |||
Accounting Standards Update 2018-12 | Previously Reported | |||||
Significant Accounting Policies | |||||
Reinsurance recoverable | $ 640,000,000 | 217,000,000 | |||
Prepaid reinsurance premiums | 79,000,000 | ||||
Deferred policy acquisition costs | 1,014,000,000 | 263,000,000 | |||
Total assets | 29,736,000,000 | ||||
Life policy and investment contract reserves | 3,059,000,000 | ||||
Deferred federal income tax | 1,045,000,000 | ||||
Total liabilities | 19,205,000,000 | ||||
Retained earnings | 11,702,000,000 | ||||
Accumulated other comprehensive income | (636,000,000) | ||||
Total shareholders' equity | 10,531,000,000 | ||||
Total liabilities and shareholders' equity | 29,736,000,000 | ||||
Earned premiums | 7,219,000,000 | $ 6,482,000,000 | |||
Insurance losses and contract holders' benefits | 5,012,000,000 | 3,936,000,000 | |||
Underwriting, acquisition and insurance expenses | 2,162,000,000 | 1,951,000,000 | |||
Deferred | (355,000,000) | 477,000,000 | |||
Net Income (Loss) | (486,000,000) | 2,946,000,000 | |||
Change in life policy reserves, reinsurance recoverable and other, net of tax (benefit) of $(8), $99 and $24, respectively | (1,000,000) | (9,000,000) | |||
Other Comprehensive Income (Loss), Net of Tax | (1,284,000,000) | (121,000,000) | |||
Comprehensive Income (Loss) | $ (1,770,000,000) | $ 2,825,000,000 | |||
Net income (loss)—basic | $ / shares | $ (3.06) | $ 18.29 | |||
Net income (loss)—diluted | $ / shares | $ (3.06) | $ 18.10 | |||
Accounting Standards Update 2018-12 | Effect of Modified Retrospective Application Accounting Standards Update 2018-12 | |||||
Significant Accounting Policies | |||||
Reinsurance recoverable | $ 25,000,000 | ||||
Prepaid reinsurance premiums | (28,000,000) | ||||
Deferred policy acquisition costs | (1,000,000) | $ 33,000,000 | |||
Total assets | (4,000,000) | ||||
Life policy and investment contract reserves | (44,000,000) | ||||
Deferred federal income tax | 9,000,000 | ||||
Total liabilities | (35,000,000) | ||||
Retained earnings | 9,000,000 | ||||
Accumulated other comprehensive income | 22,000,000 | ||||
Total shareholders' equity | 31,000,000 | ||||
Total liabilities and shareholders' equity | (4,000,000) | ||||
Earned premiums | 6,000,000 | $ (4,000,000) | |||
Insurance losses and contract holders' benefits | 7,000,000 | (27,000,000) | |||
Underwriting, acquisition and insurance expenses | 0 | (5,000,000) | |||
Deferred | 0 | 6,000,000 | |||
Net Income (Loss) | (1,000,000) | 22,000,000 | |||
Change in life policy reserves, reinsurance recoverable and other, net of tax (benefit) of $(8), $99 and $24, respectively | (373,000,000) | (83,000,000) | |||
Other Comprehensive Income (Loss), Net of Tax | 373,000,000 | 83,000,000 | |||
Comprehensive Income (Loss) | $ 372,000,000 | $ 105,000,000 | |||
Net income (loss)—basic | $ / shares | $ 0 | $ 0.14 | |||
Net income (loss)—diluted | $ / shares | $ 0 | $ 0.14 | |||
Minimum [Member] | |||||
Significant Accounting Policies | |||||
Estimated useful lives | 3 years | ||||
Maximum | |||||
Significant Accounting Policies | |||||
Estimated useful lives | 39 years 6 months | ||||
Life Policy Loans | |||||
Significant Accounting Policies | |||||
Other invested assets | $ 33,000,000 | $ 31,000,000 | |||
Venture Capital Funds | |||||
Significant Accounting Policies | |||||
Other invested assets | 434,000,000 | 337,000,000 | |||
Real Estate Investment | |||||
Significant Accounting Policies | |||||
Other invested assets | 66,000,000 | 47,000,000 | |||
Other than Securities Investment | |||||
Significant Accounting Policies | |||||
Other invested assets | $ 44,000,000 | $ 37,000,000 | |||
10 Largest States | |||||
Significant Accounting Policies | |||||
Percentage Of Premiums | 50.10% | 50.10% | |||
Ohio, Largest State | |||||
Significant Accounting Policies | |||||
Percentage Of Premiums | 13.40% | 13.40% | |||
Illinois, New York, North Carolina, Pennsylvania and Georgia | Minimum [Member] | |||||
Significant Accounting Policies | |||||
Percentage Of Premiums | 4% | ||||
Illinois, New York, North Carolina, Pennsylvania and Georgia | Maximum | |||||
Significant Accounting Policies | |||||
Percentage Of Premiums | 6% | ||||
Largest Single Agency Relationship | |||||
Significant Accounting Policies | |||||
Percentage Of Premiums | 0.60% | ||||
All Other | Maximum | |||||
Significant Accounting Policies | |||||
Percentage Of Premiums | 6% | ||||
Stock Options | |||||
Significant Accounting Policies | |||||
Weighted-average remaining contractual life for options expected to vest | 10 years | ||||
Property Casualty Insurance Segment | |||||
Significant Accounting Policies | |||||
Number of operating subsidaries | subsidiary | 2 | ||||
Stock Options | |||||
Significant Accounting Policies | |||||
Awards vesting period | 3 years | ||||
Restricted Stock Units (RSUs) | |||||
Significant Accounting Policies | |||||
Awards vesting period | 3 years | ||||
Cincinnati Global | |||||
Significant Accounting Policies | |||||
Goodwill | $ 30,000,000 | $ 30,000,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | $ 31,000,000 | $ 31,000,000 | |||
Broker Relationships and Internally developed technology | Cincinnati Global | Minimum [Member] | |||||
Significant Accounting Policies | |||||
Useful life | 5 years | ||||
Broker Relationships and Internally developed technology | Cincinnati Global | Maximum | |||||
Significant Accounting Policies | |||||
Useful life | 15 years |
Investments (Narrative) (Detail
Investments (Narrative) (Details) $ in Millions | Dec. 31, 2023 USD ($) security | Dec. 31, 2022 USD ($) security | Dec. 31, 2021 USD ($) security |
Gain (Loss) on Investments | |||
Assets Held by Insurance Regulators | $ 108 | $ 107 | |
Collateral at fair value | 125 | 135 | |
Fair Value of Owned Common Equities Held in Trust Account | 107 | 101 | |
Equity Securities at Fair Value | 10,989 | 9,841 | |
Largest single common stock holding | $ 842 | $ 597 | |
Largest equity holdings to total equity portfolio | 7.90% | 6.30% | |
Largest equity holdings to total portfolio | 3.40% | 2.70% | |
Debt Securities, Available-for-Sale, Allowance for Credit Loss | $ 18 | $ 1 | $ 1 |
Fixed Maturities | |||
Gain (Loss) on Investments | |||
Number Of Securities Continuous Unrealized Loss Position | security | 2,840 | 3,272 | 278 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss 3 | $ 687 | $ 908 | $ 16 |
Number of securities below 70 percent of amortized cost | 20 | 49 | 0 |
Investments (Analysis Of Cost O
Investments (Analysis Of Cost Or Amortized Cost Gross Unrealized Gains And Losses And Fair Value For Investments) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Available-for-sale Securities | ||
Total | $ 14,361 | $ 12,979 |
Fixed maturities, unrealized gains | 117 | 61 |
Fixed maturities, unrealized losses | 687 | 908 |
Fair value of fixed maturities | 13,791 | 12,132 |
Corporate Securities | ||
Schedule of Available-for-sale Securities | ||
Total | 7,836 | 7,412 |
Fixed maturities, unrealized gains | 70 | 37 |
Fixed maturities, unrealized losses | 454 | 580 |
Fair value of fixed maturities | 7,452 | 6,869 |
States, Municipalities and Political Subdivisions | ||
Schedule of Available-for-sale Securities | ||
Total | 4,867 | 4,901 |
Fixed maturities, unrealized gains | 44 | 24 |
Fixed maturities, unrealized losses | 208 | 303 |
Fair value of fixed maturities | 4,703 | 4,622 |
Government-Sponsored Enterprises | ||
Schedule of Available-for-sale Securities | ||
Total | 1,227 | 186 |
Fixed maturities, unrealized gains | 3 | 0 |
Fixed maturities, unrealized losses | 6 | 3 |
Fair value of fixed maturities | 1,224 | 183 |
United States Government | ||
Schedule of Available-for-sale Securities | ||
Total | 203 | 196 |
Fixed maturities, unrealized gains | 0 | 0 |
Fixed maturities, unrealized losses | 3 | 5 |
Fair value of fixed maturities | 200 | 191 |
Mortgage-backed | ||
Schedule of Available-for-sale Securities | ||
Total | 203 | 250 |
Fixed maturities, unrealized gains | 0 | 0 |
Fixed maturities, unrealized losses | 16 | 16 |
Fair value of fixed maturities | 187 | 234 |
Foreign Government | ||
Schedule of Available-for-sale Securities | ||
Total | 25 | 34 |
Fixed maturities, unrealized gains | 0 | 0 |
Fixed maturities, unrealized losses | 0 | 1 |
Fair value of fixed maturities | 25 | 33 |
Fixed Maturities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, unrealized losses | 687 | 908 |
Fixed Maturities | Corporate Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, unrealized losses | 454 | 580 |
Fixed Maturities | States, Municipalities and Political Subdivisions | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, unrealized losses | 208 | 303 |
Fixed Maturities | Government-Sponsored Enterprises | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, unrealized losses | 6 | 3 |
Fixed Maturities | United States Government | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, unrealized losses | 3 | 5 |
Fixed Maturities | Mortgage-backed | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, unrealized losses | $ 16 | $ 16 |
Investments (Fair Values And Un
Investments (Fair Values And Unrealized Losses By Investment Category And By The Duration Of The Securities' Continuous Unrealized Loss Position) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Investments, Unrealized Loss Position | ||
Total Unrealized Losses | $ 687 | $ 908 |
Corporate Securities | ||
Investments, Unrealized Loss Position | ||
Total Unrealized Losses | 454 | 580 |
States, Municipalities and Political Subdivisions | ||
Investments, Unrealized Loss Position | ||
Total Unrealized Losses | 208 | 303 |
Government-Sponsored Enterprises | ||
Investments, Unrealized Loss Position | ||
Total Unrealized Losses | 6 | 3 |
United States Government | ||
Investments, Unrealized Loss Position | ||
Total Unrealized Losses | 3 | 5 |
Mortgage-backed | ||
Investments, Unrealized Loss Position | ||
Total Unrealized Losses | 16 | 16 |
Fixed Maturities | ||
Investments, Unrealized Loss Position | ||
Less than 12 months fair value | 1,384 | 8,760 |
Less than 12 Months, Unrealized losses | 18 | 706 |
12 months or more fair value | 7,912 | 800 |
12 Months or more, unrealized losses | 669 | 202 |
Total fair value | 9,296 | 9,560 |
Total Unrealized Losses | 687 | 908 |
Fixed Maturities | Corporate Securities | ||
Investments, Unrealized Loss Position | ||
Less than 12 months fair value | 379 | 5,651 |
Less than 12 Months, Unrealized losses | 13 | 412 |
12 months or more fair value | 5,560 | 661 |
12 Months or more, unrealized losses | 441 | 168 |
Total fair value | 5,939 | 6,312 |
Total Unrealized Losses | 454 | 580 |
Fixed Maturities | States, Municipalities and Political Subdivisions | ||
Investments, Unrealized Loss Position | ||
Less than 12 months fair value | 313 | 2,600 |
Less than 12 Months, Unrealized losses | 2 | 274 |
12 months or more fair value | 1,932 | 77 |
12 Months or more, unrealized losses | 206 | 29 |
Total fair value | 2,245 | 2,677 |
Total Unrealized Losses | 208 | 303 |
Fixed Maturities | Government-Sponsored Enterprises | ||
Investments, Unrealized Loss Position | ||
Less than 12 months fair value | 652 | 123 |
Less than 12 Months, Unrealized losses | 3 | 3 |
12 months or more fair value | 113 | 3 |
12 Months or more, unrealized losses | 3 | 0 |
Total fair value | 765 | 126 |
Total Unrealized Losses | 6 | 3 |
Fixed Maturities | United States Government | ||
Investments, Unrealized Loss Position | ||
Less than 12 months fair value | 32 | 146 |
Less than 12 Months, Unrealized losses | 0 | 3 |
12 months or more fair value | 129 | 41 |
12 Months or more, unrealized losses | 3 | 2 |
Total fair value | 161 | 187 |
Total Unrealized Losses | 3 | 5 |
Fixed Maturities | Mortgage-backed | ||
Investments, Unrealized Loss Position | ||
Less than 12 months fair value | 5 | 215 |
Less than 12 Months, Unrealized losses | 0 | 13 |
12 months or more fair value | 172 | 14 |
12 Months or more, unrealized losses | 16 | 3 |
Total fair value | 177 | 229 |
Total Unrealized Losses | 16 | 16 |
Fixed Maturities | Foreign government | ||
Investments, Unrealized Loss Position | ||
Less than 12 months fair value | 3 | 25 |
Less than 12 Months, Unrealized losses | 0 | 1 |
12 months or more fair value | 6 | 4 |
12 Months or more, unrealized losses | 0 | 0 |
Total fair value | 9 | 29 |
Total Unrealized Losses | $ 0 | $ 1 |
Investments (Contractual Maturi
Investments (Contractual Maturity Dates For Fixed-Maturity And Short-Term Investments) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Amortized cost | ||
Due in one year or less | $ 973 | |
Due after one year through five years | 4,407 | |
Due after five years through ten years | 3,592 | |
Due after ten years | 5,389 | |
Total | 14,361 | $ 12,979 |
Fair value | ||
Due in one year or less | 964 | |
Due after one year through five years | 4,304 | |
Due after five years through ten years | 3,474 | |
Due after ten years | 5,049 | |
Total | $ 13,791 | $ 12,132 |
% of fair value | ||
Due in one year or less | 7% | |
Due after one year through five years | 31.20% | |
Due after five years through ten years | 25.20% | |
Due after ten years | 36.60% | |
Total | 100% |
Investments (Investment Income
Investments (Investment Income Realized Investment Gains And Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investment income: | |||
Interest | $ 600 | $ 510 | $ 477 |
Dividends | 282 | 275 | 246 |
Other | 25 | 11 | 5 |
Total | 907 | 796 | 728 |
Less investment expenses | 13 | 15 | 14 |
Total | 894 | 781 | 714 |
Gain (Loss) on Sale of Investments | 1,108 | (1,493) | 2,353 |
Investment gains and losses, net: | |||
Other | (2) | 46 | 97 |
Total | 1,127 | (1,467) | 2,409 |
Fixed Maturities | |||
Investment gains and losses, net: | |||
Gross realized gains | 4 | 6 | 36 |
Gross realized losses | (5) | (4) | (5) |
Change in allowance for credit losses, net | (17) | 0 | 0 |
Write-down of impaired securities with intent to sell | (4) | (5) | (1) |
Total | (22) | (3) | 30 |
Equity Securities | |||
Investment income: | |||
Gain (Loss) on Sale of Investments | (17) | 16 | 4 |
Unrealized Gain (Loss) on Investments | 1,168 | (1,526) | 2,278 |
Investment gains and losses, net: | |||
Total | $ 1,151 | $ (1,510) | $ 2,282 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Cash and cash equivalents | $ 907 | $ 1,264 |
Principal amount of debt | 793 | 793 |
Recorded outstanding principal and interest for these life policy loans | 108 | 92 |
Life policy and investment contract reserves | 3,068 | 3,015 |
Investment contract reserves | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Life policy and investment contract reserves | 1,471 | 1,552 |
Deferred Fixed Annuity | Investment contract reserves | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Life policy and investment contract reserves | 656 | 734 |
Structured Settlement Annuity | Investment contract reserves | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Life policy and investment contract reserves | 123 | 129 |
Life Policy Loans | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Recorded outstanding principal and interest for these life policy loans | $ 33 | $ 31 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Hierarchy For Assets Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of fixed maturities | $ 13,791 | $ 12,132 |
Separate accounts taxable fixed maturities | 925 | 892 |
Total | 25,701 | 22,845 |
Corporate Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of fixed maturities | 7,452 | 6,869 |
States, Municipalities and Political Subdivisions | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of fixed maturities | 4,703 | 4,622 |
Government-Sponsored Enterprises | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of fixed maturities | 1,224 | 183 |
United States Government | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of fixed maturities | 200 | 191 |
Mortgage-backed | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of fixed maturities | 187 | 234 |
Foreign Government | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of fixed maturities | 25 | 33 |
Top Hat Savings Plan - Mutual Funds and Common Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Top Hat savings plan mutual funds and common equity (included in Other assets) | 67 | 57 |
Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of fixed maturities | 200 | 191 |
Total | 10,908 | 9,702 |
Level 1 | Corporate Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of fixed maturities | 0 | 0 |
Level 1 | States, Municipalities and Political Subdivisions | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of fixed maturities | 0 | 0 |
Level 1 | Government-Sponsored Enterprises | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of fixed maturities | 0 | 0 |
Level 1 | United States Government | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of fixed maturities | 200 | 191 |
Level 1 | Mortgage-backed | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of fixed maturities | 0 | 0 |
Level 1 | Foreign Government | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of fixed maturities | 0 | 0 |
Level 1 | Top Hat Savings Plan - Mutual Funds and Common Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Top Hat savings plan mutual funds and common equity (included in Other assets) | 67 | 57 |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of fixed maturities | 13,591 | 11,941 |
Total | 14,793 | 13,143 |
Level 2 | Corporate Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of fixed maturities | 7,452 | 6,869 |
Level 2 | States, Municipalities and Political Subdivisions | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of fixed maturities | 4,703 | 4,622 |
Level 2 | Government-Sponsored Enterprises | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of fixed maturities | 1,224 | 183 |
Level 2 | United States Government | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of fixed maturities | 0 | 0 |
Level 2 | Mortgage-backed | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of fixed maturities | 187 | 234 |
Level 2 | Foreign Government | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of fixed maturities | 25 | 33 |
Level 2 | Top Hat Savings Plan - Mutual Funds and Common Equities | ||
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 |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of fixed maturities | 0 | 0 |
Total | 0 | 0 |
Level 3 | Corporate Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of fixed maturities | 0 | 0 |
Level 3 | States, Municipalities and Political Subdivisions | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of fixed maturities | 0 | 0 |
Level 3 | Government-Sponsored Enterprises | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of fixed maturities | 0 | 0 |
Level 3 | United States Government | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of fixed maturities | 0 | 0 |
Level 3 | Mortgage-backed | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of fixed maturities | 0 | 0 |
Level 3 | Foreign Government | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of fixed maturities | 0 | 0 |
Level 3 | Top Hat Savings Plan - Mutual Funds and Common Equities | ||
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 |
Equity Securities | Common Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Total | 10,641 | 9,454 |
Equity Securities | Nonredeemable Preferred Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Total | 348 | 387 |
Equity Securities | Level 1 | Common Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Total | 10,641 | 9,454 |
Equity Securities | Level 1 | Nonredeemable Preferred Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Total | 0 | 0 |
Equity Securities | Level 2 | Common Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Total | 0 | 0 |
Equity Securities | Level 2 | Nonredeemable Preferred Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Total | 348 | 387 |
Equity Securities | Level 3 | Common Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Total | 0 | 0 |
Equity Securities | Level 3 | Nonredeemable Preferred Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Total | 0 | 0 |
Taxable Fixed Maturities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Separate accounts taxable fixed maturities | 854 | 815 |
Taxable Fixed Maturities | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Separate accounts taxable fixed maturities | 0 | 0 |
Taxable Fixed Maturities | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Separate accounts taxable fixed maturities | 854 | 815 |
Taxable Fixed Maturities | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Separate accounts taxable fixed maturities | $ 0 | $ 0 |
Fair Value Measurements (Fair_2
Fair Value Measurements (Fair Value of Note Payable and Long-Term Debt) (Detail) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of note payable | $ 25 | $ 50 |
Total | 868 | 885 |
6.900% Senior Debentures, Due 2028 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of senior debt | $ 29 | $ 29 |
Interest rate | 6.90% | 6.90% |
6.920% Senior Debentures, Due 2028 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of senior debt | $ 420 | $ 418 |
Interest rate | 6.92% | 6.92% |
6.125% Senior Notes, Due 2034 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of senior debt | $ 394 | $ 388 |
Interest rate | 6.125% | 6.125% |
Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of note payable | $ 0 | $ 0 |
Total | 0 | 0 |
Level 1 | 6.900% Senior Debentures, Due 2028 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of senior debt | 0 | 0 |
Level 1 | 6.920% Senior Debentures, Due 2028 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of senior debt | 0 | 0 |
Level 1 | 6.125% Senior Notes, Due 2034 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of senior debt | 0 | 0 |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of note payable | 25 | 50 |
Total | 868 | 885 |
Level 2 | 6.900% Senior Debentures, Due 2028 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of senior debt | 29 | 29 |
Level 2 | 6.920% Senior Debentures, Due 2028 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of senior debt | 420 | 418 |
Level 2 | 6.125% Senior Notes, Due 2034 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of senior debt | 394 | 388 |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of note payable | 0 | 0 |
Total | 0 | 0 |
Level 3 | 6.900% Senior Debentures, Due 2028 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of senior debt | 0 | 0 |
Level 3 | 6.920% Senior Debentures, Due 2028 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of senior debt | 0 | 0 |
Level 3 | 6.125% Senior Notes, Due 2034 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of senior debt | $ 0 | $ 0 |
Fair Value Measurements (Fair_3
Fair Value Measurements (Fair Value of Life Policy) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of life policy loans | $ 39 | $ 37 |
Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of life policy loans | 0 | 0 |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of life policy loans | 0 | 0 |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of life policy loans | $ 39 | $ 37 |
Fair Value Measurements (Fair_4
Fair Value Measurements (Fair Value Of Deferred Annuities, Structured Settlements And Other Items) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of deferred annuities and structured settlements | $ 744 | $ 764 |
Deferred Annuities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of deferred annuities and structured settlements | 603 | 621 |
Structured Settlements | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of deferred annuities and structured settlements | 141 | 143 |
Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of deferred annuities and structured settlements | 0 | 0 |
Level 1 | Deferred Annuities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of deferred annuities and structured settlements | 0 | 0 |
Level 1 | Structured Settlements | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of deferred annuities and structured settlements | 0 | 0 |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of deferred annuities and structured settlements | 141 | 143 |
Level 2 | Deferred Annuities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of deferred annuities and structured settlements | 0 | 0 |
Level 2 | Structured Settlements | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of deferred annuities and structured settlements | 141 | 143 |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of deferred annuities and structured settlements | 603 | 621 |
Level 3 | Deferred Annuities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of deferred annuities and structured settlements | 603 | 621 |
Level 3 | Structured Settlements | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Fair value of deferred annuities and structured settlements | $ 0 | $ 0 |
Property Casualty Loss And Lo_3
Property Casualty Loss And Loss Expenses (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property Casualty Insurance Underwriters | ||||
Certain accident, life and health loss reserves | $ 8,975,000,000 | $ 8,336,000,000 | $ 7,229,000,000 | $ 6,677,000,000 |
Prior year claims and claims adjustments expense, (favorable) and unfavorable | (215,000,000) | (159,000,000) | (428,000,000) | |
Net loss and loss expense reserves for asbestos and environmental claims | $ 98,000,000 | $ 92,000,000 | ||
Percentage of reserves for asbestos and environmental claims | 2% | 2% | ||
Maximum | ||||
Property Casualty Insurance Underwriters | ||||
Reinsurance retention | $ 500,000 | |||
Life and Health Loss Reserves | ||||
Property Casualty Insurance Underwriters | ||||
Certain accident, life and health loss reserves | 75,000,000 | $ 64,000,000 | 76,000,000 | |
Commercial Insurance | ||||
Property Casualty Insurance Underwriters | ||||
Prior year claims and claims adjustments expense, (favorable) and unfavorable | (123,000,000) | (76,000,000) | (353,000,000) | |
Commercial Insurance | Workers' Compensation Line | ||||
Property Casualty Insurance Underwriters | ||||
Certain accident, life and health loss reserves | 1,036,000,000 | |||
Prior year claims and claims adjustments expense, (favorable) and unfavorable | (66,000,000) | (63,000,000) | (66,000,000) | |
Commercial Insurance | Commercial Property Line | ||||
Property Casualty Insurance Underwriters | ||||
Certain accident, life and health loss reserves | 525,000,000 | |||
Prior year claims and claims adjustments expense, (favorable) and unfavorable | (55,000,000) | (44,000,000) | (97,000,000) | |
Commercial Insurance | Commercial Casualty Line | ||||
Property Casualty Insurance Underwriters | ||||
Certain accident, life and health loss reserves | 2,927,000,000 | |||
Prior year claims and claims adjustments expense, (favorable) and unfavorable | 15,000,000 | 25,000,000 | (120,000,000) | |
Commercial Insurance | Commercial Auto Line | ||||
Property Casualty Insurance Underwriters | ||||
Certain accident, life and health loss reserves | 811,000,000 | |||
Prior year claims and claims adjustments expense, (favorable) and unfavorable | 23,000,000 | (43,000,000) | ||
Personal Insurance | ||||
Property Casualty Insurance Underwriters | ||||
Prior year claims and claims adjustments expense, (favorable) and unfavorable | (64,000,000) | (61,000,000) | (50,000,000) | |
Personal Insurance | Homeowner | ||||
Property Casualty Insurance Underwriters | ||||
Certain accident, life and health loss reserves | 348,000,000 | |||
Prior year claims and claims adjustments expense, (favorable) and unfavorable | (53,000,000) | (54,000,000) | (14,000,000) | |
Personal Insurance | Personal Auto | ||||
Property Casualty Insurance Underwriters | ||||
Certain accident, life and health loss reserves | 327,000,000 | |||
Prior year claims and claims adjustments expense, (favorable) and unfavorable | (15,000,000) | (31,000,000) | ||
Excess and Surplus Lines Insurance | ||||
Property Casualty Insurance Underwriters | ||||
Certain accident, life and health loss reserves | 875,000,000 | |||
Prior year claims and claims adjustments expense, (favorable) and unfavorable | $ (11,000,000) | $ (9,000,000) | $ 7,000,000 |
Property Casualty Loss and Lo_4
Property Casualty Loss and Loss Expense - Consolidated Property Casualty Loss And Loss Expense Reserves (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition | |||
Gross loss and loss expense reserves, January 1 | $ 8,336 | $ 7,229 | $ 6,677 |
Less reinsurance recoverable | 405 | 327 | 277 |
Net loss and loss expense reserves, January 1 | 7,931 | 6,902 | 6,400 |
Net incurred loss and loss expenses related to: | |||
Current accident year | 5,173 | 4,875 | 4,024 |
Prior accident years | (215) | (159) | (428) |
Total incurred | 4,958 | 4,716 | 3,596 |
Net paid loss and loss expenses related to: | |||
Current accident year | 1,875 | 1,592 | 1,379 |
Prior accident years | 2,401 | 2,095 | 1,715 |
Total paid | 4,276 | 3,687 | 3,094 |
Net loss and loss expense reserves, December 31 | 8,613 | 7,931 | 6,902 |
Plus reinsurance recoverable | 362 | 405 | 327 |
Gross loss and loss expense reserves, December 31 | $ 8,975 | $ 8,336 | $ 7,229 |
Property Casualty Loss and Lo_5
Property Casualty Loss and Loss Expense - Reconciliation of Incurred Losses and ALAE (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Liability for Claims and Claims Adjustment Expense | ||||
Cumulative incurred losses and ALAE as reported within the triangles, net of reinsurance | $ 3,496 | |||
Total liabilities for loss and ALAE, net of reinsurance | 8,535 | |||
Reinsurance recoverable on unpaid losses | 362 | $ 405 | $ 327 | $ 277 |
Unallocated loss adjustment expense reserves | 440 | |||
Total liabilities for gross loss and loss expense reserves | 8,975 | $ 8,336 | $ 7,229 | $ 6,677 |
Other Short-duration Insurance Product Line | ||||
Liability for Claims and Claims Adjustment Expense | ||||
Total liabilities for loss and ALAE, net of reinsurance | 1,686 | |||
Commercial Insurance | Commercial Casualty Line | ||||
Liability for Claims and Claims Adjustment Expense | ||||
Cumulative incurred losses and ALAE as reported within the triangles, net of reinsurance | 6,497 | |||
Cumulative paid losses and ALAE as reported within the triangles, net of reinsurance | 3,680 | |||
Liabilities for loss and ALAE for accident years not presented in the triangles, net of reinsurance | 91 | |||
Total liabilities for loss and ALAE, net of reinsurance | 2,908 | |||
Reinsurance recoverable on unpaid losses | 19 | |||
Total liabilities for gross loss and loss expense reserves | 2,927 | |||
Commercial Insurance | Workers' Compensation Line | ||||
Liability for Claims and Claims Adjustment Expense | ||||
Cumulative incurred losses and ALAE as reported within the triangles, net of reinsurance | 1,826 | |||
Cumulative paid losses and ALAE as reported within the triangles, net of reinsurance | 1,160 | |||
Liabilities for loss and ALAE for accident years not presented in the triangles, net of reinsurance | 316 | |||
Total liabilities for loss and ALAE, net of reinsurance | 982 | |||
Reinsurance recoverable on unpaid losses | 54 | |||
Total liabilities for gross loss and loss expense reserves | 1,036 | |||
Commercial Insurance | Commercial Auto Line | ||||
Liability for Claims and Claims Adjustment Expense | ||||
Cumulative incurred losses and ALAE as reported within the triangles, net of reinsurance | 2,432 | |||
Cumulative paid losses and ALAE as reported within the triangles, net of reinsurance | 1,657 | |||
Liabilities for loss and ALAE for accident years not presented in the triangles, net of reinsurance | 32 | |||
Total liabilities for loss and ALAE, net of reinsurance | 807 | |||
Reinsurance recoverable on unpaid losses | 4 | |||
Total liabilities for gross loss and loss expense reserves | 811 | |||
Commercial Insurance | Commercial Property Line | ||||
Liability for Claims and Claims Adjustment Expense | ||||
Cumulative incurred losses and ALAE as reported within the triangles, net of reinsurance | 3,496 | |||
Cumulative paid losses and ALAE as reported within the triangles, net of reinsurance | 3,033 | |||
Liabilities for loss and ALAE for accident years not presented in the triangles, net of reinsurance | 12 | |||
Total liabilities for loss and ALAE, net of reinsurance | 475 | |||
Reinsurance recoverable on unpaid losses | 50 | |||
Total liabilities for gross loss and loss expense reserves | 525 | |||
Personal Insurance | Personal Auto | ||||
Liability for Claims and Claims Adjustment Expense | ||||
Cumulative incurred losses and ALAE as reported within the triangles, net of reinsurance | 1,884 | |||
Cumulative paid losses and ALAE as reported within the triangles, net of reinsurance | 1,594 | |||
Liabilities for loss and ALAE for accident years not presented in the triangles, net of reinsurance | 12 | |||
Total liabilities for loss and ALAE, net of reinsurance | 302 | |||
Reinsurance recoverable on unpaid losses | 25 | |||
Total liabilities for gross loss and loss expense reserves | 327 | |||
Personal Insurance | Homeowner | ||||
Liability for Claims and Claims Adjustment Expense | ||||
Cumulative incurred losses and ALAE as reported within the triangles, net of reinsurance | 2,576 | |||
Cumulative paid losses and ALAE as reported within the triangles, net of reinsurance | 2,231 | |||
Liabilities for loss and ALAE for accident years not presented in the triangles, net of reinsurance | 6 | |||
Total liabilities for loss and ALAE, net of reinsurance | 351 | |||
Reinsurance recoverable on unpaid losses | (3) | |||
Total liabilities for gross loss and loss expense reserves | 348 | |||
Excess and Surplus Lines Insurance | ||||
Liability for Claims and Claims Adjustment Expense | ||||
Cumulative incurred losses and ALAE as reported within the triangles, net of reinsurance | 1,545 | |||
Cumulative paid losses and ALAE as reported within the triangles, net of reinsurance | 707 | |||
Liabilities for loss and ALAE for accident years not presented in the triangles, net of reinsurance | 4 | |||
Total liabilities for loss and ALAE, net of reinsurance | 842 | |||
Reinsurance recoverable on unpaid losses | 33 | |||
Total liabilities for gross loss and loss expense reserves | $ 875 |
Property Casualty Loss and Lo_6
Property Casualty Loss and Loss Expense - Claims Development - Commercial Casualty (Details) reported_claim in Thousands, $ in Millions | Dec. 31, 2023 USD ($) reported_claim | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | Dec. 31, 2018 USD ($) | Dec. 31, 2017 USD ($) | Dec. 31, 2016 USD ($) | Dec. 31, 2015 USD ($) | Dec. 31, 2014 USD ($) |
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | $ 3,496 | |||||||||
Liabilities for loss and ALAE, net of reinsurance | 8,535 | |||||||||
Commercial Casualty Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 6,497 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | 3,680 | |||||||||
All outstanding liabilities before, net of reinsurance | 91 | |||||||||
Liabilities for loss and ALAE, net of reinsurance | 2,908 | |||||||||
2014 | Commercial Casualty Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 464 | $ 462 | $ 466 | $ 469 | $ 465 | $ 479 | $ 476 | $ 479 | $ 496 | $ 503 |
Total of incurred but not reported liabilities plus expected development on reported losses | $ 10 | |||||||||
Cumulative number of reported claims | reported_claim | 21 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 447 | 437 | 421 | 409 | 390 | 338 | 287 | 172 | 97 | $ 34 |
2015 | Commercial Casualty Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 513 | 496 | 504 | 502 | 508 | 516 | 529 | 526 | 533 | |
Total of incurred but not reported liabilities plus expected development on reported losses | $ 14 | |||||||||
Cumulative number of reported claims | reported_claim | 22 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 471 | 453 | 424 | 404 | 362 | 287 | 200 | 108 | $ 38 | |
2016 | Commercial Casualty Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 525 | 531 | 538 | 554 | 555 | 557 | 574 | 563 | ||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 19 | |||||||||
Cumulative number of reported claims | reported_claim | 22 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 485 | 466 | 434 | 395 | 331 | 228 | 126 | $ 46 | ||
2017 | Commercial Casualty Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 553 | 554 | 555 | 571 | 577 | 597 | 610 | |||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 29 | |||||||||
Cumulative number of reported claims | reported_claim | 21 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 486 | 437 | 392 | 320 | 234 | 122 | $ 48 | |||
2018 | Commercial Casualty Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 618 | 612 | 588 | 622 | 641 | 650 | ||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 55 | |||||||||
Cumulative number of reported claims | reported_claim | 22 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 505 | 441 | 345 | 253 | 148 | $ 44 | ||||
2019 | Commercial Casualty Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 682 | 669 | 607 | 643 | 672 | |||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 80 | |||||||||
Cumulative number of reported claims | reported_claim | 21 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 503 | 394 | 259 | 134 | $ 39 | |||||
2020 | Commercial Casualty Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 593 | 606 | 629 | 674 | ||||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 112 | |||||||||
Cumulative number of reported claims | reported_claim | 15 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 345 | 242 | 102 | $ 33 | ||||||
2021 | Commercial Casualty Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 697 | 697 | 714 | |||||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 265 | |||||||||
Cumulative number of reported claims | reported_claim | 14 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 251 | 123 | $ 31 | |||||||
2022 | Commercial Casualty Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 902 | 924 | ||||||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 453 | |||||||||
Cumulative number of reported claims | reported_claim | 13 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 141 | $ 37 | ||||||||
2023 | Commercial Casualty Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 950 | |||||||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 729 | |||||||||
Cumulative number of reported claims | reported_claim | 8 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 46 |
Property Casualty Loss and Lo_7
Property Casualty Loss and Loss Expense - Claims Development - Workers Compensation (Details) reported_claim in Thousands, $ in Millions | Dec. 31, 2023 USD ($) reported_claim | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | Dec. 31, 2018 USD ($) | Dec. 31, 2017 USD ($) | Dec. 31, 2016 USD ($) | Dec. 31, 2015 USD ($) | Dec. 31, 2014 USD ($) |
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | $ 3,496 | |||||||||
Liabilities for loss and ALAE, net of reinsurance | 8,535 | |||||||||
Workers' Compensation Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 1,826 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | 1,160 | |||||||||
All outstanding liabilities before, net of reinsurance | 316 | |||||||||
Liabilities for loss and ALAE, net of reinsurance | 982 | |||||||||
2014 | Workers' Compensation Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 203 | $ 202 | $ 202 | $ 197 | $ 198 | $ 201 | $ 203 | $ 214 | $ 233 | $ 261 |
Total of incurred but not reported liabilities plus expected development on reported losses | $ 15 | |||||||||
Cumulative number of reported claims | reported_claim | 19 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 172 | 171 | 168 | 165 | 162 | 157 | 148 | 134 | 110 | $ 56 |
2015 | Workers' Compensation Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 167 | 171 | 173 | 173 | 179 | 195 | 208 | 220 | 246 | |
Total of incurred but not reported liabilities plus expected development on reported losses | $ 20 | |||||||||
Cumulative number of reported claims | reported_claim | 17 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 140 | 139 | 139 | 137 | 134 | 129 | 115 | 93 | $ 47 | |
2016 | Workers' Compensation Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 181 | 183 | 183 | 183 | 188 | 206 | 218 | 230 | ||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 22 | |||||||||
Cumulative number of reported claims | reported_claim | 16 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 150 | 148 | 146 | 141 | 131 | 119 | 97 | $ 46 | ||
2017 | Workers' Compensation Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 160 | 167 | 172 | 183 | 190 | 208 | 218 | |||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 21 | |||||||||
Cumulative number of reported claims | reported_claim | 15 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 126 | 122 | 119 | 114 | 106 | 88 | $ 45 | |||
2018 | Workers' Compensation Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 175 | 179 | 186 | 199 | 207 | 222 | ||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 26 | |||||||||
Cumulative number of reported claims | reported_claim | 15 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 135 | 133 | 127 | 115 | 95 | $ 48 | ||||
2019 | Workers' Compensation Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 178 | 188 | 202 | 215 | 224 | |||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 31 | |||||||||
Cumulative number of reported claims | reported_claim | 14 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 129 | 122 | 115 | 94 | $ 49 | |||||
2020 | Workers' Compensation Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 153 | 172 | 190 | 204 | ||||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 39 | |||||||||
Cumulative number of reported claims | reported_claim | 11 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 96 | 82 | 68 | $ 37 | ||||||
2021 | Workers' Compensation Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 183 | 190 | 202 | |||||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 42 | |||||||||
Cumulative number of reported claims | reported_claim | 11 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 100 | 82 | $ 37 | |||||||
2022 | Workers' Compensation Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 205 | 209 | ||||||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 65 | |||||||||
Cumulative number of reported claims | reported_claim | 11 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 76 | $ 37 | ||||||||
2023 | Workers' Compensation Line | Commercial Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 221 | |||||||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 106 | |||||||||
Cumulative number of reported claims | reported_claim | 9 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 36 |
Property Casualty Loss and Lo_8
Property Casualty Loss and Loss Expense - Claims Development - Commercial Auto (Details) reported_claim in Thousands, $ in Millions | Dec. 31, 2023 USD ($) reported_claim | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) |
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | $ 3,496 | ||||
Liabilities for loss and ALAE, net of reinsurance | 8,535 | ||||
Commercial Auto Line | Commercial Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 2,432 | ||||
Cumulative paid losses and ALAE, net of reinsurance | 1,657 | ||||
All outstanding liabilities before, net of reinsurance | 32 | ||||
Liabilities for loss and ALAE, net of reinsurance | 807 | ||||
2019 | Commercial Auto Line | Commercial Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 471 | $ 469 | $ 453 | $ 451 | $ 452 |
Total of incurred but not reported liabilities plus expected development on reported losses | $ 7 | ||||
Cumulative number of reported claims | reported_claim | 46 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 435 | 395 | 333 | 268 | $ 183 |
2020 | Commercial Auto Line | Commercial Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 377 | 384 | 391 | 424 | |
Total of incurred but not reported liabilities plus expected development on reported losses | $ 16 | ||||
Cumulative number of reported claims | reported_claim | 36 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 328 | 280 | 214 | $ 154 | |
2021 | Commercial Auto Line | Commercial Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 465 | 477 | 470 | ||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 51 | ||||
Cumulative number of reported claims | reported_claim | 39 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 346 | 278 | $ 179 | ||
2022 | Commercial Auto Line | Commercial Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 569 | 558 | |||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 105 | ||||
Cumulative number of reported claims | reported_claim | 41 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 332 | $ 217 | |||
2023 | Commercial Auto Line | Commercial Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 550 | ||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 203 | ||||
Cumulative number of reported claims | reported_claim | 34 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 216 |
Property Casualty Loss and Lo_9
Property Casualty Loss and Loss Expense - Claims Development - Commercial Property (Details) reported_claim in Thousands, $ in Millions | Dec. 31, 2023 USD ($) reported_claim | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) |
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | $ 3,496 | ||||
Liabilities for loss and ALAE, net of reinsurance | 8,535 | ||||
Commercial Property Line | Commercial Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 3,496 | ||||
Cumulative paid losses and ALAE, net of reinsurance | 3,033 | ||||
All outstanding liabilities before, net of reinsurance | 12 | ||||
Liabilities for loss and ALAE, net of reinsurance | 475 | ||||
2019 | Commercial Property Line | Commercial Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 592 | $ 598 | $ 600 | $ 606 | $ 621 |
Total of incurred but not reported liabilities plus expected development on reported losses | $ 3 | ||||
Cumulative number of reported claims | reported_claim | 17 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 591 | 590 | 579 | 561 | $ 413 |
2020 | Commercial Property Line | Commercial Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 716 | 719 | 742 | 855 | |
Total of incurred but not reported liabilities plus expected development on reported losses | $ 22 | ||||
Cumulative number of reported claims | reported_claim | 24 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 687 | 672 | 637 | $ 489 | |
2021 | Commercial Property Line | Commercial Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 576 | 586 | 607 | ||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 5 | ||||
Cumulative number of reported claims | reported_claim | 14 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 558 | 527 | $ 326 | ||
2022 | Commercial Property Line | Commercial Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 779 | 813 | |||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 24 | ||||
Cumulative number of reported claims | reported_claim | 16 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 691 | $ 393 | |||
2023 | Commercial Property Line | Commercial Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 833 | ||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 92 | ||||
Cumulative number of reported claims | reported_claim | 12 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 506 |
Property Casualty Loss and L_10
Property Casualty Loss and Loss Expense - Claims Development - Personal Auto (Details) reported_claim in Thousands, $ in Millions | Dec. 31, 2023 USD ($) reported_claim | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) |
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | $ 3,496 | ||||
Liabilities for loss and ALAE, net of reinsurance | 8,535 | ||||
Personal Auto | Personal Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 1,884 | ||||
Cumulative paid losses and ALAE, net of reinsurance | 1,594 | ||||
All outstanding liabilities before, net of reinsurance | 12 | ||||
Liabilities for loss and ALAE, net of reinsurance | 302 | ||||
2019 | Personal Auto | Personal Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 381 | $ 383 | $ 380 | $ 383 | $ 399 |
Total of incurred but not reported liabilities plus expected development on reported losses | $ 2 | ||||
Cumulative number of reported claims | reported_claim | 102 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 373 | 363 | 346 | 314 | $ 250 |
2020 | Personal Auto | Personal Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 277 | 277 | 281 | 305 | |
Total of incurred but not reported liabilities plus expected development on reported losses | $ 3 | ||||
Cumulative number of reported claims | reported_claim | 71 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 264 | 248 | 225 | $ 186 | |
2021 | Personal Auto | Personal Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 342 | 343 | 350 | ||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 6 | ||||
Cumulative number of reported claims | reported_claim | 80 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 304 | 278 | $ 219 | ||
2022 | Personal Auto | Personal Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 418 | 427 | |||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 15 | ||||
Cumulative number of reported claims | reported_claim | 86 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 349 | $ 277 | |||
2023 | Personal Auto | Personal Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 466 | ||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 72 | ||||
Cumulative number of reported claims | reported_claim | 86 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 304 |
Property Casualty Loss and L_11
Property Casualty Loss and Loss Expense - Claims Development - Homeowner (Details) reported_claim in Thousands, $ in Millions | Dec. 31, 2023 USD ($) reported_claim | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) |
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | $ 3,496 | ||||
Liabilities for loss and ALAE, net of reinsurance | 8,535 | ||||
Homeowner | Personal Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 2,576 | ||||
Cumulative paid losses and ALAE, net of reinsurance | 2,231 | ||||
All outstanding liabilities before, net of reinsurance | 6 | ||||
Liabilities for loss and ALAE, net of reinsurance | 351 | ||||
2019 | Homeowner | Personal Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 418 | $ 418 | $ 422 | $ 421 | $ 432 |
Total of incurred but not reported liabilities plus expected development on reported losses | $ 2 | ||||
Cumulative number of reported claims | reported_claim | 22 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 414 | 411 | 407 | 391 | $ 303 |
2020 | Homeowner | Personal Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 471 | 470 | 475 | 497 | |
Total of incurred but not reported liabilities plus expected development on reported losses | $ 3 | ||||
Cumulative number of reported claims | reported_claim | 23 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 464 | 453 | 434 | $ 326 | |
2021 | Homeowner | Personal Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 440 | 449 | 495 | ||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 4 | ||||
Cumulative number of reported claims | reported_claim | 19 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 424 | 405 | $ 285 | ||
2022 | Homeowner | Personal Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 505 | 552 | |||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 21 | ||||
Cumulative number of reported claims | reported_claim | 20 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 461 | $ 299 | |||
2023 | Homeowner | Personal Insurance | |||||
Claims Development | |||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 742 | ||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 116 | ||||
Cumulative number of reported claims | reported_claim | 21 | ||||
Cumulative paid losses and ALAE, net of reinsurance | $ 468 |
Property Casualty Loss and L_12
Property Casualty Loss and Loss Expense - Claims Development - Excess and Surplus Lines (Details) reported_claim in Thousands, $ in Millions | Dec. 31, 2023 USD ($) reported_claim | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | Dec. 31, 2018 USD ($) | Dec. 31, 2017 USD ($) | Dec. 31, 2016 USD ($) | Dec. 31, 2015 USD ($) | Dec. 31, 2014 USD ($) |
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | $ 3,496 | |||||||||
Liabilities for loss and ALAE, net of reinsurance | 8,535 | |||||||||
Excess and Surplus Lines Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 1,545 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | 707 | |||||||||
All outstanding liabilities before, net of reinsurance | 4 | |||||||||
Liabilities for loss and ALAE, net of reinsurance | 842 | |||||||||
2014 | Excess and Surplus Lines Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 57 | $ 56 | $ 58 | $ 59 | $ 59 | $ 60 | $ 64 | $ 75 | $ 82 | $ 95 |
Total of incurred but not reported liabilities plus expected development on reported losses | $ 0 | |||||||||
Cumulative number of reported claims | reported_claim | 2 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 55 | 55 | 53 | 51 | 48 | 43 | 37 | 27 | 17 | $ 9 |
2015 | Excess and Surplus Lines Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 65 | 61 | 65 | 66 | 65 | 67 | 73 | 81 | 96 | |
Total of incurred but not reported liabilities plus expected development on reported losses | $ 0 | |||||||||
Cumulative number of reported claims | reported_claim | 2 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 62 | 58 | 56 | 54 | 51 | 41 | 29 | 19 | $ 8 | |
2016 | Excess and Surplus Lines Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 89 | 88 | 91 | 90 | 82 | 84 | 87 | 93 | ||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 2 | |||||||||
Cumulative number of reported claims | reported_claim | 3 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 83 | 81 | 75 | 62 | 51 | 39 | 21 | $ 10 | ||
2017 | Excess and Surplus Lines Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 94 | 91 | 94 | 94 | 95 | 95 | 104 | |||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 4 | |||||||||
Cumulative number of reported claims | reported_claim | 3 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 88 | 77 | 68 | 57 | 41 | 23 | $ 11 | |||
2018 | Excess and Surplus Lines Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 105 | 107 | 108 | 110 | 109 | 116 | ||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 6 | |||||||||
Cumulative number of reported claims | reported_claim | 3 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 88 | 75 | 62 | 50 | 26 | $ 11 | ||||
2019 | Excess and Surplus Lines Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 142 | 139 | 141 | 135 | 137 | |||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 16 | |||||||||
Cumulative number of reported claims | reported_claim | 3 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 102 | 79 | 55 | 34 | $ 13 | |||||
2020 | Excess and Surplus Lines Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 152 | 160 | 172 | 172 | ||||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 26 | |||||||||
Cumulative number of reported claims | reported_claim | 4 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 86 | 56 | 37 | $ 16 | ||||||
2021 | Excess and Surplus Lines Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 233 | 235 | 217 | |||||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 66 | |||||||||
Cumulative number of reported claims | reported_claim | 4 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 82 | 45 | $ 17 | |||||||
2022 | Excess and Surplus Lines Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 280 | 294 | ||||||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 134 | |||||||||
Cumulative number of reported claims | reported_claim | 3 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 46 | $ 21 | ||||||||
2023 | Excess and Surplus Lines Insurance | ||||||||||
Claims Development | ||||||||||
Incurred losses and ALAE, net of reinsurance for the years ended December 31, | 328 | |||||||||
Total of incurred but not reported liabilities plus expected development on reported losses | $ 251 | |||||||||
Cumulative number of reported claims | reported_claim | 2 | |||||||||
Cumulative paid losses and ALAE, net of reinsurance | $ 15 |
Property Casualty Loss and L_13
Property Casualty Loss and Loss Expense - Average Annual Payout (Details) | Dec. 31, 2023 |
Commercial Insurance | Commercial Casualty Line | |
Short-duration Insurance Contracts, Historical Claims Duration | |
1 | 6.40% |
2 | 13.70% |
3 | 18.90% |
4 | 18.40% |
5 | 13.80% |
6 | 9.10% |
7 | 5.70% |
8 | 4% |
9 | 3.50% |
10 | 2.10% |
Commercial Insurance | Workers' Compensation Line | |
Short-duration Insurance Contracts, Historical Claims Duration | |
1 | 24.30% |
2 | 25.20% |
3 | 11.30% |
4 | 6.60% |
5 | 3.90% |
6 | 2.10% |
7 | 1.60% |
8 | 0.80% |
9 | 0.80% |
10 | 0.90% |
Commercial Insurance | Commercial Auto Line | |
Short-duration Insurance Contracts, Historical Claims Duration | |
1 | 39.10% |
2 | 18.90% |
3 | 15.30% |
4 | 12.80% |
5 | 8.60% |
Commercial Insurance | Commercial Property Line | |
Short-duration Insurance Contracts, Historical Claims Duration | |
1 | 61.10% |
2 | 29.70% |
3 | 4.50% |
4 | 2% |
5 | 0% |
Personal Insurance | Personal Auto | |
Short-duration Insurance Contracts, Historical Claims Duration | |
1 | 65.60% |
2 | 16.40% |
3 | 8.20% |
4 | 5% |
5 | 2.40% |
Personal Insurance | Homeowner | |
Short-duration Insurance Contracts, Historical Claims Duration | |
1 | 65.80% |
2 | 25.80% |
3 | 4.10% |
4 | 1.60% |
5 | 0.60% |
Excess and Surplus Lines Insurance | |
Short-duration Insurance Contracts, Historical Claims Duration | |
1 | 10.10% |
2 | 13.20% |
3 | 17.40% |
4 | 16.20% |
5 | 13.10% |
6 | 10.40% |
7 | 6.30% |
8 | 2.70% |
9 | 4.30% |
10 | 1.10% |
Life Policy And Investment Co_3
Life Policy And Investment Contract Reservess (Reserve In Addition To The Account Balance Based On Expected No-Lapse Guarantee Benefits And Expected Policy Assessments) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | $ 3,068 | $ 3,015 |
Life Policy Reserves | ||
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | 1,597 | 1,463 |
Life Policy Reserves | Term Life Insurance | ||
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | 1,066 | 961 |
Life Policy Reserves | Whole Life Insurance | ||
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | 434 | 408 |
Life Policy Reserves | Long-Duration Insurance, Other | ||
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | 97 | 94 |
Investment contract reserves | ||
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | 1,471 | 1,552 |
Investment contract reserves | Deferred Fixed Annuity | ||
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | 656 | 734 |
Investment contract reserves | Universal Life | ||
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | 585 | 578 |
Investment contract reserves | Structured Settlement Annuity | ||
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | 123 | 129 |
Investment contract reserves | Long-Duration Insurance, Other | ||
Liability for Future Policy Benefit, by Product Segment | ||
Life policy and investment contract reserves | $ 107 | $ 111 |
Transition Date Adoption Impact
Transition Date Adoption Impacts (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2020 |
ASU 2018-12 Adoption Impacts to the Life Reinsurance Recoverable Assets | |||
Life policy and investment contract reserves | $ 651 | $ 665 | |
Accounting Standards Update 2018-12 | |||
ASU 2018-12 Adoption Impacts to the life policy and investment contract reserves | |||
Life policy and investment contract reserves | $ 3,560 | ||
ASU 2018-12 Adoption Impacts to the Life Reinsurance Recoverable Assets | |||
Life policy and investment contract reserves | 665 | 287 | |
Previously Reported | Accounting Standards Update 2018-12 | |||
ASU 2018-12 Adoption Impacts to the life policy and investment contract reserves | |||
Life policy and investment contract reserves | 2,915 | ||
ASU 2018-12 Adoption Impacts to the Life Reinsurance Recoverable Assets | |||
Life policy and investment contract reserves | 640 | 217 | |
Effect of Modified Retrospective Application Accounting Standards Update 2018-12 | Accounting Standards Update 2018-12 | |||
ASU 2018-12 Adoption Impacts to the life policy and investment contract reserves | |||
Removal of shadow adjustments | 13 | ||
Net premiums in excess of gross premiums | 15 | ||
Remeasurement at market value discount rates | 617 | ||
ASU 2018-12 Adoption Impacts to the Life Reinsurance Recoverable Assets | |||
Life policy and investment contract reserves | $ 25 | ||
Remeasurement at market value discount rates | 47 | ||
Other adjustments | 23 | ||
Term Life Insurance | Accounting Standards Update 2018-12 | |||
ASU 2018-12 Adoption Impacts to the life policy and investment contract reserves | |||
Life policy and investment contract reserves | 1,287 | ||
ASU 2018-12 Adoption Impacts to the Life Reinsurance Recoverable Assets | |||
Life policy and investment contract reserves | 162 | ||
Term Life Insurance | Previously Reported | Accounting Standards Update 2018-12 | |||
ASU 2018-12 Adoption Impacts to the life policy and investment contract reserves | |||
Life policy and investment contract reserves | 901 | ||
ASU 2018-12 Adoption Impacts to the Life Reinsurance Recoverable Assets | |||
Life policy and investment contract reserves | 113 | ||
Term Life Insurance | Effect of Modified Retrospective Application Accounting Standards Update 2018-12 | Accounting Standards Update 2018-12 | |||
ASU 2018-12 Adoption Impacts to the life policy and investment contract reserves | |||
Removal of shadow adjustments | 0 | ||
Net premiums in excess of gross premiums | 14 | ||
Remeasurement at market value discount rates | 372 | ||
ASU 2018-12 Adoption Impacts to the Life Reinsurance Recoverable Assets | |||
Remeasurement at market value discount rates | 29 | ||
Other adjustments | 20 | ||
Whole Life Insurance | Accounting Standards Update 2018-12 | |||
ASU 2018-12 Adoption Impacts to the life policy and investment contract reserves | |||
Life policy and investment contract reserves | 609 | ||
ASU 2018-12 Adoption Impacts to the Life Reinsurance Recoverable Assets | |||
Life policy and investment contract reserves | 45 | ||
Whole Life Insurance | Previously Reported | Accounting Standards Update 2018-12 | |||
ASU 2018-12 Adoption Impacts to the life policy and investment contract reserves | |||
Life policy and investment contract reserves | 363 | ||
ASU 2018-12 Adoption Impacts to the Life Reinsurance Recoverable Assets | |||
Life policy and investment contract reserves | 26 | ||
Whole Life Insurance | Effect of Modified Retrospective Application Accounting Standards Update 2018-12 | Accounting Standards Update 2018-12 | |||
ASU 2018-12 Adoption Impacts to the life policy and investment contract reserves | |||
Removal of shadow adjustments | 0 | ||
Net premiums in excess of gross premiums | 1 | ||
Remeasurement at market value discount rates | 245 | ||
ASU 2018-12 Adoption Impacts to the Life Reinsurance Recoverable Assets | |||
Remeasurement at market value discount rates | 18 | ||
Other adjustments | 1 | ||
Deferred Fixed Annuity | Accounting Standards Update 2018-12 | |||
ASU 2018-12 Adoption Impacts to the life policy and investment contract reserves | |||
Life policy and investment contract reserves | 761 | ||
ASU 2018-12 Adoption Impacts to the Life Reinsurance Recoverable Assets | |||
Life policy and investment contract reserves | 0 | ||
Deferred Fixed Annuity | Previously Reported | Accounting Standards Update 2018-12 | |||
ASU 2018-12 Adoption Impacts to the life policy and investment contract reserves | |||
Life policy and investment contract reserves | 761 | ||
ASU 2018-12 Adoption Impacts to the Life Reinsurance Recoverable Assets | |||
Life policy and investment contract reserves | 0 | ||
Deferred Fixed Annuity | Effect of Modified Retrospective Application Accounting Standards Update 2018-12 | Accounting Standards Update 2018-12 | |||
ASU 2018-12 Adoption Impacts to the life policy and investment contract reserves | |||
Removal of shadow adjustments | 0 | ||
Net premiums in excess of gross premiums | 0 | ||
Remeasurement at market value discount rates | 0 | ||
ASU 2018-12 Adoption Impacts to the Life Reinsurance Recoverable Assets | |||
Remeasurement at market value discount rates | 0 | ||
Other adjustments | 0 | ||
Universal Life | Accounting Standards Update 2018-12 | |||
ASU 2018-12 Adoption Impacts to the life policy and investment contract reserves | |||
Life policy and investment contract reserves | 567 | ||
ASU 2018-12 Adoption Impacts to the Life Reinsurance Recoverable Assets | |||
Life policy and investment contract reserves | 2 | ||
Universal Life | Previously Reported | Accounting Standards Update 2018-12 | |||
ASU 2018-12 Adoption Impacts to the life policy and investment contract reserves | |||
Life policy and investment contract reserves | 567 | ||
ASU 2018-12 Adoption Impacts to the Life Reinsurance Recoverable Assets | |||
Life policy and investment contract reserves | 0 | ||
Universal Life | Effect of Modified Retrospective Application Accounting Standards Update 2018-12 | Accounting Standards Update 2018-12 | |||
ASU 2018-12 Adoption Impacts to the life policy and investment contract reserves | |||
Removal of shadow adjustments | 0 | ||
Net premiums in excess of gross premiums | 0 | ||
Remeasurement at market value discount rates | 0 | ||
ASU 2018-12 Adoption Impacts to the Life Reinsurance Recoverable Assets | |||
Remeasurement at market value discount rates | 0 | ||
Other adjustments | 2 | ||
Long-Duration Insurance, Other | Accounting Standards Update 2018-12 | |||
ASU 2018-12 Adoption Impacts to the life policy and investment contract reserves | |||
Life policy and investment contract reserves | 336 | ||
ASU 2018-12 Adoption Impacts to the Life Reinsurance Recoverable Assets | |||
Life policy and investment contract reserves | 78 | ||
Long-Duration Insurance, Other | Previously Reported | Accounting Standards Update 2018-12 | |||
ASU 2018-12 Adoption Impacts to the life policy and investment contract reserves | |||
Life policy and investment contract reserves | 323 | ||
ASU 2018-12 Adoption Impacts to the Life Reinsurance Recoverable Assets | |||
Life policy and investment contract reserves | 78 | ||
Long-Duration Insurance, Other | Effect of Modified Retrospective Application Accounting Standards Update 2018-12 | Accounting Standards Update 2018-12 | |||
ASU 2018-12 Adoption Impacts to the life policy and investment contract reserves | |||
Removal of shadow adjustments | 13 | ||
Net premiums in excess of gross premiums | 0 | ||
Remeasurement at market value discount rates | 0 | ||
ASU 2018-12 Adoption Impacts to the Life Reinsurance Recoverable Assets | |||
Remeasurement at market value discount rates | 0 | ||
Other adjustments | $ 0 |
Liability for Future Policy Ben
Liability for Future Policy Benefit (Details) - Life Policy Reserves - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Term Life Insurance | |||
Present value of expected net premiums: | |||
Balance, beginning of period | $ 1,643 | $ 1,801 | $ 1,935 |
Beginning balance at original discount rate | 1,708 | 1,503 | 1,503 |
Effect of changes in cash flow assumptions | (7) | 123 | (177) |
Effect of actual variances from expected experience | (20) | (1) | 28 |
Adjusted beginning of period balance | 1,681 | 1,625 | 1,354 |
Issuances | 143 | 194 | 248 |
Interest accrual | 72 | 65 | 62 |
Net premiums collected | (184) | (176) | (161) |
Ending balance at original discount rate | 1,712 | 1,708 | 1,503 |
Effect of changes in discount rate assumptions | (12) | (65) | 298 |
Balance, end of period | 1,700 | 1,643 | 1,801 |
Present value of expected future policy benefits: | |||
Balance, beginning of period | 2,584 | 2,993 | 3,222 |
Beginning balance at original discount rate | 2,692 | 2,425 | 2,418 |
Effect of changes in cash flow assumptions | 2 | 140 | (181) |
Effect of actual variances from expected experience | (24) | 8 | 31 |
Adjusted beginning of period balance | 2,670 | 2,573 | 2,268 |
Issuances | 143 | 194 | 248 |
Interest accrual | 121 | 112 | 109 |
Benefits paid | (169) | (187) | (200) |
Ending balance at original discount rate | 2,765 | 2,692 | 2,425 |
Effect of changes in discount rate assumptions | (14) | (108) | 568 |
Balance, end of period | 2,751 | 2,584 | 2,993 |
Net liability for future policy benefits: | |||
Present value of expected future policy benefits less expected net premiums | 1,051 | 941 | 1,192 |
Impact of flooring at cohort level | 15 | 20 | 14 |
Net life policy reserves | 1,066 | 961 | 1,206 |
Less reinsurance recoverable at original discount rate | (97) | (99) | (107) |
Less effect of discount rate assumption changes on reinsurance recoverable | (10) | (9) | (19) |
Net life policy reserves, after reinsurance recoverable | $ 959 | $ 853 | $ 1,080 |
Weighted-average duration of the net life policy reserves | 11 years | 11 years | 12 years |
Whole Life Insurance | |||
Present value of expected net premiums: | |||
Balance, beginning of period | $ 208 | $ 241 | $ 234 |
Beginning balance at original discount rate | 217 | 201 | 182 |
Effect of changes in cash flow assumptions | (7) | (5) | (3) |
Effect of actual variances from expected experience | 3 | 0 | 2 |
Adjusted beginning of period balance | 213 | 196 | 181 |
Issuances | 31 | 40 | 39 |
Interest accrual | 9 | 8 | 8 |
Net premiums collected | (28) | (27) | (27) |
Ending balance at original discount rate | 225 | 217 | 201 |
Effect of changes in discount rate assumptions | (2) | (9) | 40 |
Balance, end of period | 223 | 208 | 241 |
Present value of expected future policy benefits: | |||
Balance, beginning of period | 614 | 826 | 843 |
Beginning balance at original discount rate | 607 | 577 | 545 |
Effect of changes in cash flow assumptions | (10) | (7) | (4) |
Effect of actual variances from expected experience | 3 | (1) | 2 |
Adjusted beginning of period balance | 600 | 569 | 543 |
Issuances | 30 | 40 | 39 |
Interest accrual | 31 | 29 | 29 |
Benefits paid | (33) | (31) | (34) |
Ending balance at original discount rate | 628 | 607 | 577 |
Effect of changes in discount rate assumptions | 29 | 7 | 249 |
Balance, end of period | 657 | 614 | 826 |
Net liability for future policy benefits: | |||
Present value of expected future policy benefits less expected net premiums | 434 | 406 | 585 |
Impact of flooring at cohort level | 0 | 2 | 0 |
Net life policy reserves | 434 | 408 | 585 |
Less reinsurance recoverable at original discount rate | (23) | (25) | (27) |
Less effect of discount rate assumption changes on reinsurance recoverable | (5) | (5) | (15) |
Net life policy reserves, after reinsurance recoverable | $ 406 | $ 378 | $ 543 |
Weighted-average duration of the net life policy reserves | 16 years | 16 years | 18 years |
Life Policy and Investment Co_4
Life Policy and Investment Contract Reserves (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Life Policy Reserves | |||
Liability for Future Policy Benefit, Activity | |||
Discount Rate Assumption Changes included in Impact of flooring at Cohort Level | $ 2 | $ 9 | $ 6 |
Undiscounted and Discounted Fut
Undiscounted and Discounted Future Benefit Payments and Gross Premiums (Details) - Life Policy Reserves - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Term Life Insurance | ||||
Liability for Future Policy Benefit, Activity | ||||
Undiscounted expected future benefit payments | $ 4,791 | $ 4,655 | ||
Undiscounted expected future gross premiums | 4,374 | 4,436 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit, before Reinsurance, after Discount Rate Change | 2,751 | 2,584 | $ 2,993 | $ 3,222 |
Discounted expected future gross premiums | 2,652 | 2,582 | ||
Whole Life Insurance | ||||
Liability for Future Policy Benefit, Activity | ||||
Undiscounted expected future benefit payments | 1,648 | 1,562 | ||
Undiscounted expected future gross premiums | 659 | 606 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit, before Reinsurance, after Discount Rate Change | 657 | 614 | $ 826 | $ 843 |
Discounted expected future gross premiums | $ 409 | $ 368 |
Revenue and Interest Recognized
Revenue and Interest Recognized in Income (Details) - Life Policy Reserves - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Liability for Future Policy Benefit, Activity | |||
Gross premiums | $ 341 | $ 327 | $ 317 |
Interest accretion | 71 | 68 | 68 |
Term Life Insurance | |||
Liability for Future Policy Benefit, Activity | |||
Gross premiums | 289 | 280 | 270 |
Interest accretion | 49 | 47 | 47 |
Whole Life Insurance | |||
Liability for Future Policy Benefit, Activity | |||
Gross premiums | 52 | 47 | 47 |
Interest accretion | $ 22 | $ 21 | $ 21 |
Weighted Average Interest Rate
Weighted Average Interest Rate for Life Policy Products (Details) - Life Policy Reserves | Dec. 31, 2023 | Dec. 31, 2022 |
Term Life Insurance | ||
Liability for Future Policy Benefit, Activity | ||
Interest accretion rate | 5.28% | 5.38% |
Current discount rate | 4.81% | 5.24% |
Whole Life Insurance | ||
Liability for Future Policy Benefit, Activity | ||
Interest accretion rate | 5.90% | 5.96% |
Current discount rate | 5.10% | 5.35% |
Changes in Policyholders' Accou
Changes in Policyholders' Account Balances (Details) - Investment contract reserves - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred Fixed Annuity | |||
Policyholder Account Balance [Roll Forward] | |||
Balance, beginning of period | $ 734 | $ 763 | $ 761 |
Premiums received | 44 | 29 | 44 |
Policy charges | 0 | 0 | 0 |
Surrenders and withdrawals | (130) | (62) | (47) |
Benefit payments | (14) | (18) | (17) |
Interest credited | 22 | 22 | 22 |
Balance, end of period | $ 656 | $ 734 | $ 763 |
Weighted average crediting rate | 3.51% | 3.36% | 2.88% |
Net amount at risk | $ 0 | $ 0 | $ 0 |
Cash surrender value | 651 | 729 | 757 |
Universal Life | |||
Policyholder Account Balance [Roll Forward] | |||
Balance, beginning of period | 457 | 454 | 451 |
Premiums received | 39 | 39 | 39 |
Policy charges | (39) | (39) | (38) |
Surrenders and withdrawals | (13) | (11) | (10) |
Benefit payments | (6) | (5) | (7) |
Interest credited | 19 | 19 | 19 |
Balance, end of period | $ 457 | $ 457 | $ 454 |
Weighted average crediting rate | 4.30% | 4.27% | 4.25% |
Net amount at risk | $ 3,949 | $ 4,082 | $ 4,198 |
Cash surrender value | $ 426 | $ 424 | $ 419 |
Account Values by Range of Guar
Account Values by Range of Guaranteed Minimum Crediting Rates (Details) - Investment contract reserves - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Fixed Annuity | |||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||
Balance, end of period | $ 656 | $ 734 | $ 763 |
Deferred Fixed Annuity | Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | |||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||
Balance, end of period | 53 | 56 | |
Deferred Fixed Annuity | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0001 to 0050 | |||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||
Balance, end of period | 361 | 446 | |
Deferred Fixed Annuity | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0051 to 0150 | |||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||
Balance, end of period | 16 | 18 | |
Deferred Fixed Annuity | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0151 and Greater | |||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||
Balance, end of period | 226 | 214 | |
Deferred Fixed Annuity | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0200 to 0299 | |||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||
Balance, end of period | 608 | 683 | |
Deferred Fixed Annuity | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0200 to 0299 | Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | |||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||
Balance, end of period | 5 | 5 | |
Deferred Fixed Annuity | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0200 to 0299 | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0001 to 0050 | |||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||
Balance, end of period | 361 | 446 | |
Deferred Fixed Annuity | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0200 to 0299 | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0051 to 0150 | |||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||
Balance, end of period | 16 | 18 | |
Deferred Fixed Annuity | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0200 to 0299 | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0151 and Greater | |||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||
Balance, end of period | 226 | 214 | |
Deferred Fixed Annuity | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0300 to 0399 | |||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||
Balance, end of period | 48 | 51 | |
Deferred Fixed Annuity | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0300 to 0399 | Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | |||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||
Balance, end of period | 48 | 51 | |
Deferred Fixed Annuity | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0300 to 0399 | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0001 to 0050 | |||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||
Balance, end of period | 0 | 0 | |
Deferred Fixed Annuity | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0300 to 0399 | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0051 to 0150 | |||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||
Balance, end of period | 0 | 0 | |
Deferred Fixed Annuity | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0300 to 0399 | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0151 and Greater | |||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||
Balance, end of period | 0 | 0 | |
Universal Life | |||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||
Balance, end of period | 457 | 457 | $ 454 |
Universal Life | Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | |||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||
Balance, end of period | 387 | 401 | |
Universal Life | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0001 to 0050 | |||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||
Balance, end of period | 9 | 46 | |
Universal Life | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0051 to 0150 | |||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||
Balance, end of period | 57 | 8 | |
Universal Life | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0151 and Greater | |||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||
Balance, end of period | 4 | 2 | |
Universal Life | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0200 to 0299 | |||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||
Balance, end of period | 120 | 117 | |
Universal Life | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0200 to 0299 | Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | |||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||
Balance, end of period | 55 | 61 | |
Universal Life | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0200 to 0299 | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0001 to 0050 | |||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||
Balance, end of period | 4 | 46 | |
Universal Life | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0200 to 0299 | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0051 to 0150 | |||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||
Balance, end of period | 57 | 8 | |
Universal Life | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0200 to 0299 | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0151 and Greater | |||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||
Balance, end of period | 4 | 2 | |
Universal Life | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0300 to 0399 | |||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||
Balance, end of period | 54 | 52 | |
Universal Life | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0300 to 0399 | Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | |||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||
Balance, end of period | 49 | 52 | |
Universal Life | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0300 to 0399 | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0001 to 0050 | |||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||
Balance, end of period | 5 | 0 | |
Universal Life | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0300 to 0399 | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0051 to 0150 | |||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||
Balance, end of period | 0 | 0 | |
Universal Life | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0300 to 0399 | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0151 and Greater | |||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||
Balance, end of period | 0 | 0 | |
Universal Life | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0400 and Greater | |||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||
Balance, end of period | 283 | 288 | |
Universal Life | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0400 and Greater | Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | |||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||
Balance, end of period | 283 | 288 | |
Universal Life | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0400 and Greater | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0001 to 0050 | |||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||
Balance, end of period | 0 | 0 | |
Universal Life | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0400 and Greater | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0051 to 0150 | |||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||
Balance, end of period | 0 | 0 | |
Universal Life | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0400 and Greater | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0151 and Greater | |||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | |||
Balance, end of period | $ 0 | $ 0 |
Other Additional Liability Roll
Other Additional Liability Rollforward (Details) - Universal Life - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Additional Liability, Long-Duration Insurance [Roll Forward] | |||
Balance, beginning of period | $ 121 | $ 133 | $ 116 |
Balance, beginning of period before shadow reserve adjustments | 123 | 131 | 113 |
Effect of changes in cash flow assumptions | (6) | (1) | 4 |
Effect of actual variances from expected experience | 0 | 6 | 0 |
Adjusted beginning of period balance | 117 | 136 | 117 |
Interest accrual | 4 | 4 | 4 |
Excess death benefits | (6) | (18) | (4) |
Attributed assessments | 12 | 12 | 12 |
Effect of changes in interest rate assumptions | 2 | (11) | 2 |
Balance, end of period before shadow reserve adjustments | 129 | 123 | 131 |
Shadow reserve adjustments | 1 | 2 | (2) |
Balance, end of period | 128 | 121 | 133 |
Less reinsurance recoverable, end of period | 6 | 5 | 3 |
Net other additional liability, after reinsurance recoverable | $ 134 | $ 126 | $ 136 |
Weighted-average duration of the other additional liability | 32 years | 34 years | 35 years |
Separate Account Balances and C
Separate Account Balances and Changes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Separate Account, Liability [Roll Forward] | |||
Balance, beginning of period | $ 892 | ||
Balance, end of period | 925 | $ 892 | |
Universal Life | |||
Separate Account, Liability [Roll Forward] | |||
Balance, beginning of period | 892 | 959 | $ 952 |
Interest credited before policy charges | 42 | 38 | 37 |
Change in unrealized gains and losses impacting separate account liabilities | 0 | (85) | (22) |
Benefit payments | (10) | (15) | (6) |
Other | 1 | (5) | (2) |
Balance, end of period | 925 | 892 | 959 |
Cash surrender value | $ 917 | $ 890 | $ 870 |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs - Deferred Policy Acquisition Costs and Asset Reconciliation (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Movement Analysis of Deferred Policy Acquisition Costs | |||
Deferred policy acquisition costs asset, beginning of period | $ 1,013 | $ 916 | $ 838 |
Deferred Policy Acquisition Cost, Capitalization | 1,530 | 1,427 | 1,254 |
Deferred Policy Acquisition Costs, Amortization Expense | (1,450) | (1,330) | (1,176) |
Deferred policy acquisition costs asset, end of period | 1,093 | 1,013 | 916 |
Consolidated Property And Casualty Insurance Entity | |||
Movement Analysis of Deferred Policy Acquisition Costs | |||
Deferred policy acquisition costs asset, beginning of period | 682 | 602 | 542 |
Deferred Policy Acquisition Cost, Capitalization | 1,488 | 1,383 | 1,211 |
Deferred Policy Acquisition Costs, Amortization Expense | (1,421) | (1,303) | (1,151) |
Deferred policy acquisition costs asset, end of period | 749 | 682 | 602 |
Life Insurance Segment | |||
Movement Analysis of Deferred Policy Acquisition Costs | |||
Deferred policy acquisition costs asset, beginning of period | 331 | 314 | 296 |
Deferred Policy Acquisition Cost, Capitalization | 42 | 44 | 43 |
Deferred Policy Acquisition Costs, Amortization Expense | (29) | (27) | (25) |
Deferred policy acquisition costs asset, end of period | $ 344 | $ 331 | $ 314 |
Deferred Policy Acquisition C_4
Deferred Policy Acquisition Costs - ASU 2018-12 Transition Deferred Acquisition Costs Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
ASU 2018-12 | ||||
Deferred policy acquisition costs | $ 1,093 | $ 1,013 | $ 916 | $ 838 |
Accounting Standards Update 2018-12 | ||||
ASU 2018-12 | ||||
Deferred policy acquisition costs | 1,013 | 296 | ||
Effect of Modified Retrospective Application Accounting Standards Update 2018-12 | Accounting Standards Update 2018-12 | ||||
ASU 2018-12 | ||||
Deferred policy acquisition costs | (1) | 33 | ||
Previously Reported | Accounting Standards Update 2018-12 | ||||
ASU 2018-12 | ||||
Deferred policy acquisition costs | $ 1,014 | $ 263 |
Deferred Policy Acquisition C_5
Deferred Policy Acquisition Costs - Life Deferred Acquisition Costs Rollforward by Product (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Movement Analysis of Deferred Policy Acquisition Costs | |||
Deferred policy acquisition costs asset, beginning of period | $ 1,013 | $ 916 | $ 838 |
Deferred Policy Acquisition Cost, Capitalization | 1,530 | 1,427 | 1,254 |
Deferred Policy Acquisition Costs, Amortization Expense | (1,450) | (1,330) | (1,176) |
Deferred policy acquisition costs asset, end of period | 1,093 | 1,013 | 916 |
Term Life Insurance | |||
Movement Analysis of Deferred Policy Acquisition Costs | |||
Deferred policy acquisition costs asset, beginning of period | 228 | 215 | 201 |
Deferred Policy Acquisition Cost, Capitalization | 30 | 34 | 35 |
Deferred Policy Acquisition Costs, Amortization Expense | (22) | (21) | (21) |
Deferred policy acquisition costs asset, end of period | 236 | 228 | 215 |
Whole Life Insurance | |||
Movement Analysis of Deferred Policy Acquisition Costs | |||
Deferred policy acquisition costs asset, beginning of period | 43 | 38 | 35 |
Deferred Policy Acquisition Cost, Capitalization | 8 | 7 | 5 |
Deferred Policy Acquisition Costs, Amortization Expense | (3) | (2) | (2) |
Deferred policy acquisition costs asset, end of period | 48 | 43 | 38 |
Deferred Fixed Annuity | |||
Movement Analysis of Deferred Policy Acquisition Costs | |||
Deferred policy acquisition costs asset, beginning of period | 7 | 7 | 6 |
Deferred Policy Acquisition Cost, Capitalization | 2 | 1 | 1 |
Deferred Policy Acquisition Costs, Amortization Expense | (1) | (1) | 0 |
Deferred policy acquisition costs asset, end of period | 8 | 7 | 7 |
Universal Life | |||
Movement Analysis of Deferred Policy Acquisition Costs | |||
Deferred policy acquisition costs asset, beginning of period | 53 | 54 | 54 |
Deferred Policy Acquisition Cost, Capitalization | 2 | 2 | 2 |
Deferred Policy Acquisition Costs, Amortization Expense | (3) | (3) | (2) |
Deferred policy acquisition costs asset, end of period | 52 | 53 | 54 |
Life Insurance Segment | |||
Movement Analysis of Deferred Policy Acquisition Costs | |||
Deferred policy acquisition costs asset, beginning of period | 331 | 314 | 296 |
Deferred Policy Acquisition Cost, Capitalization | 42 | 44 | 43 |
Deferred Policy Acquisition Costs, Amortization Expense | (29) | (27) | (25) |
Deferred policy acquisition costs asset, end of period | $ 344 | $ 331 | $ 314 |
Note Payable (Narrative) (Detai
Note Payable (Narrative) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Debt Disclosure | ||
Number of lines of credit | 1 | |
Aggregate borrowing capacity | $ 300 | |
Accordian feature available amount | 300 | |
Note payable | $ 25 | $ 50 |
Ratio of debt-to-total capital maximum | 0.35 | |
Minimum [Member] | ||
Debt Disclosure | ||
Line of credit, interest rate | 5.27% | 0.99% |
Maximum | ||
Debt Disclosure | ||
Line of credit, interest rate | 6.33% | 5% |
Long-Term Debt And Lease Obli_3
Long-Term Debt And Lease Obligation (Book Value And Principal Amounts Of Long-Term Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument | ||
Book value | $ 790 | $ 789 |
Principal amount | $ 793 | $ 793 |
6.900% Senior Debentures, Due 2028 | ||
Debt Instrument | ||
Interest rate | 6.90% | 6.90% |
Book value | $ 27 | $ 27 |
Principal amount | $ 28 | $ 28 |
6.920% Senior Debentures, Due 2028 | ||
Debt Instrument | ||
Interest rate | 6.92% | 6.92% |
Book value | $ 391 | $ 391 |
Principal amount | $ 391 | $ 391 |
6.125% Senior Notes, Due 2034 | ||
Debt Instrument | ||
Interest rate | 6.125% | 6.125% |
Book value | $ 372 | $ 371 |
Principal amount | $ 374 | $ 374 |
Long-Term Debt And Lease Obli_4
Long-Term Debt And Lease Obligation (Lease Payments Over Next Five Years) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Long-Term Debt and Lease Obligation [Abstract] | |
Finance Lease 2024 | $ 16 |
Finance Lease 2025 | 12 |
Finance Lease 2026 | 9 |
Finance Lease 2027 | 7 |
Finance Lease 2028 | 6 |
Finance Lease 2029 and thereafter | 3 |
Operating Leases 2024 | 3 |
Operating Leases 2025 | 3 |
Operating Leases 2026 | 3 |
Operating Leases 2027 | 2 |
Operating Leases 2028 | 1 |
Operating Leases 2029 and thereafter | 0 |
Total Finance and Operating Lease 2024 | 19 |
Total Finance and Operating Lease 2025 | 15 |
Total Finance and Operating Lease 2026 | 12 |
Total Finance and Operating Lease 2027 | 9 |
Total Finance and Operating Lease 2028 | 7 |
Total Finance and Operating Lease 2029 and thereafter | $ 3 |
Long-Term Debt And Lease Obli_5
Long-Term Debt And Lease Obligation (Long-term Debt and Lease Obligation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Long-Term Debt and Lease Obligation [Abstract] | |||
Finance Lease, Right-of-Use Asset, Amortization | $ 14 | $ 14 | $ 15 |
Operating Lease, Expense | 3 | 5 | 4 |
Total Finance and Operating Lease Cost | 17 | 19 | 19 |
Finance Lease, Principal Payments | $ 16 | $ 15 | $ 15 |
Finance Lease, Weighted Average Discount Rate, Percent | 4.35% | 3.20% | 2.46% |
Finance Lease, Weighted Average Remaining Lease Term | 3 years 10 months 20 days | 3 years 5 months 26 days | 3 years 5 months 12 days |
Operating Lease, Payments | $ 3 | $ 4 | $ 4 |
Operating Lease, Weighted Average Discount Rate, Percent | 4.66% | 3.44% | 2.86% |
Operating Lease, Weighted Average Remaining Lease Term | 4 years 3 months 18 days | 4 years 6 months 10 days | 4 years 4 months 13 days |
Long-Term Debt And Lease Obli_6
Long-Term Debt And Lease Obligation (Long-Term Debt and Lease Obligation Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Lessee, Lease, Description [Line Items] | ||
Total lease liability | $ 59 | $ 52 |
Lessee, Operating Lease, Term of Contract | 5 years | |
Total lease liability | $ 59 | $ 52 |
Interest Costs Incurred | $ 6 | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, Finance Lease, Term of Contract | 6 years | |
Minimum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, Finance Lease, Term of Contract | 3 years |
Shareholders' Equity And Divi_3
Shareholders' Equity And Dividend Restrictions (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Declared cash dividends, per share | $ 3 | $ 2.76 | $ 2.52 |
Dividend payment without prior regulatory approval, maximum percent of policyholder surplus | 10% | ||
Dividend payment without prior regulatory approval, percent of statutory net income for the prior calendar year | 100% | ||
Dividends might be paid during next year | $ 729 | ||
The Cincinnati Insurance Company | |||
Cash Dividends Paid to Parent | 526 | $ 729 | $ 583 |
Cincinnati Global | |||
Cash Dividends Paid to Parent | $ 0 | $ 0 | $ 0 |
Shareholders' Equity And Divi_4
Shareholders' Equity And Dividend Restrictions (Change In AOCI Includes Changes In Unrealized Gains And Losses On Investments And Pension Obligations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income, Before Tax | |||
Pension obligations OCI | $ (6) | $ 9 | $ 68 |
Accumulated Other Comprehensive Income, Net of Tax | |||
AOCI, balance at the beginning of the period | (614) | ||
AOCI, balance at the end of the period | (435) | (614) | |
Accumulated Net Unrealized Investment Gain (Loss) | |||
Accumulated Other Comprehensive Income, Before Tax | |||
AOCI, balance at the beginning of the period | (847) | 792 | 1,026 |
OCI before investment gains and losses, net, recognized in net income | 255 | (1,642) | (204) |
Investment gains and losses, net, recognized in net income | 22 | 3 | (30) |
OCI | 277 | (1,639) | (234) |
AOCI, balance at the end of the period | (570) | (847) | 792 |
Accumulated Other Comprehensive Income, Income Tax | |||
AOCI, balance at the beginning of the period | (182) | 165 | 215 |
OCI before investment gains and losses, net, recognized in net income | 55 | (347) | (44) |
Investment gains and losses, net, recognized in net income | 4 | 0 | (6) |
OCI | 59 | (347) | (50) |
AOCI, balance at the end of the period | (123) | (182) | 165 |
Accumulated Other Comprehensive Income, Net of Tax | |||
AOCI, balance at the beginning of the period | (665) | 627 | 811 |
OCI before investment gains and losses, net, recognized in net income | 200 | (1,295) | (160) |
Investment gains and losses, net, recognized in net income | 18 | 3 | (24) |
OCI | 218 | (1,292) | (184) |
AOCI, balance at the end of the period | (447) | (665) | 627 |
Accumulated Defined Benefit Plans Adjustment | |||
Accumulated Other Comprehensive Income, Before Tax | |||
AOCI, balance at the beginning of the period | 36 | 27 | (41) |
OCI before investment gains and losses, net, recognized in net income | 2 | 12 | 62 |
Investment gains and losses, net, recognized in net income | (8) | (3) | 6 |
OCI | (6) | 9 | 68 |
AOCI, balance at the end of the period | 30 | 36 | 27 |
Accumulated Other Comprehensive Income, Income Tax | |||
AOCI, balance at the beginning of the period | 9 | 7 | (7) |
OCI before investment gains and losses, net, recognized in net income | 1 | 2 | 12 |
Investment gains and losses, net, recognized in net income | (2) | 0 | 2 |
OCI | (1) | 2 | 14 |
AOCI, balance at the end of the period | 8 | 9 | 7 |
Accumulated Other Comprehensive Income, Net of Tax | |||
AOCI, balance at the beginning of the period | 27 | 20 | (34) |
OCI before investment gains and losses, net, recognized in net income | 1 | 10 | 50 |
Investment gains and losses, net, recognized in net income | (6) | (3) | 4 |
OCI | (5) | 7 | 54 |
AOCI, balance at the end of the period | 22 | 27 | 20 |
Accumulated Net Unrealized Gain (Loss) on Life Policy Reserves, Reinsurance Recoverable And Other | |||
Accumulated Other Comprehensive Income, Before Tax | |||
AOCI, balance at the beginning of the period | 29 | (444) | (560) |
OCI before investment gains and losses, net, recognized in net income | (42) | 473 | 116 |
Investment gains and losses, net, recognized in net income | 0 | 0 | 0 |
OCI | (42) | 473 | 116 |
AOCI, balance at the end of the period | (13) | 29 | (444) |
Accumulated Other Comprehensive Income, Income Tax | |||
AOCI, balance at the beginning of the period | 5 | (94) | (118) |
OCI before investment gains and losses, net, recognized in net income | (8) | 99 | 24 |
Investment gains and losses, net, recognized in net income | 0 | 0 | 0 |
OCI | (8) | 99 | 24 |
AOCI, balance at the end of the period | (3) | 5 | (94) |
Accumulated Other Comprehensive Income, Net of Tax | |||
AOCI, balance at the beginning of the period | 24 | (350) | (442) |
OCI before investment gains and losses, net, recognized in net income | (34) | 374 | 92 |
Investment gains and losses, net, recognized in net income | 0 | 0 | 0 |
OCI | (34) | 374 | 92 |
AOCI, balance at the end of the period | (10) | 24 | (350) |
Accumulated Net Unrealized Gain (Loss) on Life Policy Reserves, Reinsurance Recoverable And Other | Previously Reported | |||
Accumulated Other Comprehensive Income, Before Tax | |||
AOCI, balance at the beginning of the period | 29 | (444) | (10) |
AOCI, balance at the end of the period | 29 | (444) | |
Accumulated Other Comprehensive Income, Income Tax | |||
AOCI, balance at the beginning of the period | 5 | (94) | (2) |
AOCI, balance at the end of the period | 5 | (94) | |
Accumulated Other Comprehensive Income, Net of Tax | |||
AOCI, balance at the beginning of the period | 24 | (350) | (8) |
AOCI, balance at the end of the period | 24 | (350) | |
Accumulated Net Unrealized Gain (Loss) on Life Policy Reserves, Reinsurance Recoverable And Other | Adjustment to purchase price | |||
Accumulated Other Comprehensive Income, Before Tax | |||
AOCI, balance at the beginning of the period | 0 | 0 | (550) |
AOCI, balance at the end of the period | 0 | 0 | |
Accumulated Other Comprehensive Income, Income Tax | |||
AOCI, balance at the beginning of the period | 0 | 0 | (116) |
AOCI, balance at the end of the period | 0 | 0 | |
Accumulated Other Comprehensive Income, Net of Tax | |||
AOCI, balance at the beginning of the period | 0 | 0 | (434) |
AOCI, balance at the end of the period | 0 | 0 | |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income, Before Tax | |||
AOCI, balance at the beginning of the period | (782) | 375 | 425 |
Investments OCI | 277 | (1,639) | (234) |
Pension obligations OCI | (6) | 9 | 68 |
Life policy reserves, reinsurance recoverable and other OCI | (42) | 473 | 116 |
Total OCI | 229 | (1,157) | (50) |
AOCI, balance at the end of the period | (553) | (782) | 375 |
Accumulated Other Comprehensive Income, Income Tax | |||
AOCI, balance at the beginning of the period | (168) | 78 | 90 |
Investments OCI | 59 | (347) | (50) |
Pension obligations OCI | (1) | 2 | 14 |
Life policy reserves, reinsurance recoverable and other OCI | (8) | 99 | 24 |
Total OCI | 50 | (246) | (12) |
AOCI, balance at the end of the period | (118) | (168) | 78 |
Accumulated Other Comprehensive Income, Net of Tax | |||
AOCI, balance at the beginning of the period | (614) | 297 | 335 |
Investments OCI | 218 | (1,292) | (184) |
Pension obligations OCI | (5) | 7 | 54 |
Life policy reserves, reinsurance recoverable and other OCI | (34) | 374 | 92 |
Total OCI | 179 | (911) | (38) |
AOCI, balance at the end of the period | (435) | (614) | 297 |
Accumulated Other Comprehensive Income (Loss) | Previously Reported | |||
Accumulated Other Comprehensive Income, Before Tax | |||
AOCI, balance at the beginning of the period | (782) | 375 | 975 |
AOCI, balance at the end of the period | (782) | 375 | |
Accumulated Other Comprehensive Income, Income Tax | |||
AOCI, balance at the beginning of the period | (168) | 78 | 206 |
AOCI, balance at the end of the period | (168) | 78 | |
Accumulated Other Comprehensive Income, Net of Tax | |||
AOCI, balance at the beginning of the period | (614) | 297 | 769 |
AOCI, balance at the end of the period | (614) | 297 | |
Accumulated Other Comprehensive Income (Loss) | Adjustment to purchase price | |||
Accumulated Other Comprehensive Income, Before Tax | |||
AOCI, balance at the beginning of the period | 0 | 0 | (550) |
AOCI, balance at the end of the period | 0 | 0 | |
Accumulated Other Comprehensive Income, Income Tax | |||
AOCI, balance at the beginning of the period | 0 | 0 | (116) |
AOCI, balance at the end of the period | 0 | 0 | |
Accumulated Other Comprehensive Income, Net of Tax | |||
AOCI, balance at the beginning of the period | $ 0 | 0 | (434) |
AOCI, balance at the end of the period | $ 0 | $ 0 |
Reinsurance Reinsurance (Writte
Reinsurance Reinsurance (Written Consolidated Property Casualty Insurance Premiums On Assumed and Ceded Business) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance | |||
Direct premiums earned | $ 7,801 | $ 7,056 | $ 6,366 |
Assumed premiums earned | 569 | 561 | 443 |
Ceded premiums earned | (412) | (392) | (331) |
Incurred loss and loss expenses | 5,274 | 5,019 | 3,909 |
Consolidated Property And Casualty Insurance Entity | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance | |||
Direct premiums written | 7,784 | 7,002 | 6,229 |
Assumed premiums written | 597 | 619 | 515 |
Ceded premiums written | (335) | (314) | (265) |
Net written premiums | 8,046 | 7,307 | 6,479 |
Direct premiums earned | 7,407 | 6,677 | 5,996 |
Assumed premiums earned | 569 | 561 | 443 |
Ceded premiums earned | (331) | (314) | (255) |
Earned premiums | 7,645 | 6,924 | 6,184 |
Direct incurred loss and loss expenses | 4,843 | 4,495 | 3,352 |
Assumed incurred loss and loss expenses | 280 | 396 | 366 |
Ceded incurred loss and loss expenses | (165) | (175) | (122) |
Incurred loss and loss expenses | $ 4,958 | $ 4,716 | $ 3,596 |
Reinsurance (Earned Life Insura
Reinsurance (Earned Life Insurance Premiums On Ceded Business) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Direct premiums earned | $ 7,801 | $ 7,056 | $ 6,366 |
Ceded earned premiums | (412) | (392) | (331) |
Insurance losses and contract holders' benefits | 5,274 | 5,019 | 3,909 |
Life Insurance Segment | |||
Direct premiums earned | 394 | 379 | 370 |
Ceded earned premiums | (81) | (78) | (76) |
Net earned premiums | 313 | 301 | 294 |
Direct contract holders' benefits incurred | 391 | 394 | 380 |
Ceded contract holders' benefits incurred | (75) | (91) | (67) |
Insurance losses and contract holders' benefits | $ 316 | $ 303 | $ 313 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
ASU 2018-12 | ||||
Tax at statutory rate (percentage): | 21% | 21% | 21% | |
Release of unrecognized tax benefits during the year | $ 34 | |||
Income tax refund received | $ 2 | 0 | $ 0 | |
Net deferred tax assets, valuation allowance | 0 | 31 | ||
United States | ||||
ASU 2018-12 | ||||
Operating Loss Carryforwards | 0 | 0 | ||
Cincinnati Global | ||||
ASU 2018-12 | ||||
Net deferred tax assets, valuation allowance | 0 | 31 | $ 53 | $ 56 |
Cincinnati Global | United States | ||||
ASU 2018-12 | ||||
Operating Loss Carryforwards | 0 | 5 | ||
Cincinnati Global | United Kingdom | ||||
ASU 2018-12 | ||||
Operating Loss Carryforwards | $ 100 | $ 109 |
Income Taxes (Components Of Def
Income Taxes (Components Of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Unearned premiums | $ 165 | $ 148 |
Loss and loss expense reserves | 120 | 106 |
Net operating loss on international earnings | 26 | 28 |
Deferred international earnings | 0 | 16 |
Other | 70 | 55 |
Deferred tax assets before valuation allowance | 381 | 353 |
Valuation allowance for international operations | 0 | 31 |
Deferred tax assets net of valuation allowance | 381 | 322 |
Deferred tax liabilities: | ||
Investment gains and other, net | 1,290 | 992 |
Deferred acquisition costs | 184 | 171 |
Life policy reserves | 104 | 121 |
Deferred international earnings | 21 | 0 |
Investments | 35 | 31 |
Other | 71 | 61 |
Total gross deferred tax liabilities | 1,705 | 1,376 |
Net deferred income tax liability | $ 1,324 | $ 1,054 |
Income Taxes Schedule of Income
Income Taxes Schedule of Income before Income Tax (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
United States income (loss) before tax | $ 2,195 | $ (719) | $ 3,672 |
International income before income taxes | 81 | 25 | 26 |
Total income (loss) before income taxes | $ 2,276 | $ (694) | $ 3,698 |
Income Taxes The Provision of I
Income Taxes The Provision of Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Current federal tax | $ 209 | $ 148 | $ 248 |
Current international tax | 1 | 0 | (1) |
Total current tax | 210 | 148 | 247 |
Deferred federal tax | 216 | (355) | 483 |
Deferred international tax | 7 | 0 | 0 |
Deferred income tax expense | 223 | (355) | 483 |
Total provision (benefit) for income taxes | $ 433 | $ (207) | $ 730 |
Income Taxes (Differences Betwe
Income Taxes (Differences Between The 21 Percent Statutory Income Tax Rate And Effective Income Tax Rate) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Increase (decrease) resulting from: | |||
Tax at statutory rate: | $ 478 | $ (146) | $ 777 |
Tax-exempt income from municipal bonds | (21) | (20) | (20) |
Dividend received exclusion | (22) | (21) | (20) |
Effective Income Tax Rate Reconciliation, Tax Accounting Method Changes, Amount | 0 | (34) | 0 |
Other | (2) | 14 | (7) |
Total provision (benefit) for income taxes | $ 433 | $ (207) | $ 730 |
Tax at statutory rate: | |||
Tax at statutory rate (percentage): | 21% | 21% | 21% |
Effective Income Tax Rate Reconciliation, Tax Exempt Income, Percent | (0.90%) | 2.90% | (0.50%) |
Dividend received exclusion (percentage) | (1.00%) | 3% | (0.50%) |
Effective Income Tax Rate Reconciliation, Tax Accounting Method Changes, Percent | 0% | 4.90% | 0% |
Other (percentage) | (0.10%) | (2.00%) | (0.30%) |
Effective tax, percentage | 19% | 29.80% | 19.70% |
Income Taxes Reconciliation of
Income Taxes Reconciliation of Cincinnati Global Valuation Allowance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Valuation Allowance | |||
Valuation allowance at January 1 | $ 31 | ||
Valuation allowance at December 31 | 0 | $ 31 | |
Cincinnati Global | |||
Valuation Allowance | |||
Valuation allowance at January 1 | 31 | 53 | $ 56 |
Current year operations | (31) | (22) | (3) |
Valuation allowance at December 31 | $ 0 | $ 31 | $ 53 |
Net Income Per Common Share (Ca
Net Income Per Common Share (Calculations For Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator: | |||
Net Income (Loss) | $ 1,843 | $ (487) | $ 2,968 |
Denominator: | |||
Basic weighted-average common shares outstanding | 157 | 158.8 | 161 |
Diluted weighted-average shares | 158.1 | 158.8 | 162.7 |
Earnings (loss) per share: | |||
Basic (in usd per share) | $ 11.74 | $ (3.06) | $ 18.43 |
Diluted (in usd per share) | $ 11.66 | $ (3.06) | $ 18.24 |
Number of anti-dilutive share-based awards | 1.3 | 2.2 | 0.8 |
Stock Options | |||
Denominator: | |||
Effect of stock-based awards | 0.7 | 0 | 1.1 |
Restricted Stock Units (RSUs) | |||
Denominator: | |||
Effect of stock-based awards | 0.4 | 0 | 0.6 |
Employee Retirement Benefits (N
Employee Retirement Benefits (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2008 | |
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Minimum participant age to elect | 40 years | |||
Employer discretionary contribution amount | $ 26 | $ 24 | $ 22 | |
Requisite service period | 3 years | |||
Actual percentage return on plan assets | 11.80% | (8.90%) | ||
Pension plan assets at fair value | $ 317 | $ 332 | 397 | |
Maximum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Matching contribution to defined contribution plan | 6% | |||
Pension Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Percentage of increase decrease in benefit obligations discount rate | 0.30% | |||
Change In Net Benefit Cost Discount Rate Assumption | 2.37% | |||
Pension Plan | Maximum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Cash dividends paid (less than $1 million) | $ 1 | 1 | ||
Supplemental Employee Retirement Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Accrued employee benefit | $ 11 | 8 | ||
Percentage of increase decrease in benefit obligations discount rate | 0.31% | |||
Change In Net Benefit Cost Discount Rate Assumption | 2.52% | |||
Expected contribution by employer during 2023 | $ 7 | |||
Top Hat Savings Plan - Mutual Funds and Common Equities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
CFC Top Hat Savings Plan | 67 | 57 | ||
Top Hat | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
CFC Top Hat Savings Plan | 67 | 57 | ||
Top Hat | Top Hat Savings Plan - Mutual Funds and Common Equities | Maximum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Employer discretionary contribution amount | $ 1 | $ 1 | $ 1 | |
Employer Common Stock | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Pension plan assets, shares | 100,610 | 100,610 | ||
Pension plan assets, fair value | $ 10 | $ 10 | ||
Employer Common Stock | Sale of stock | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Pension plan assets, shares | 101,727 | |||
Equity Securities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Allocation percentage of investments | 90% | |||
Pension plan assets at fair value | $ 269 | $ 245 | ||
Equity Securities | Information Technology Sector | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Allocation percentage of investments | 29% | |||
Equity Securities | Financial Services Sector | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Allocation percentage of investments | 19% | |||
Equity Securities | Industrial Sector | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Allocation percentage of investments | 16% | |||
Equity Securities | Healthcare Sector | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Allocation percentage of investments | 13% | |||
Equity Securities | All Remaining Sectors | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Allocation percentage of investments | 10% | |||
Fixed Maturities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Pension plan assets at fair value | $ 32 | 44 | ||
Fixed Maturities | United States Government | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Allocation percentage of investments | 7% | |||
Pension plan assets at fair value | $ 22 | 31 | ||
Fixed Maturities | States, Municipalities and Political Subdivisions | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Allocation percentage of investments | 2% | |||
Pension plan assets at fair value | $ 6 | 6 | ||
Fixed Maturities | Domestic Corporate Debt Securities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Allocation percentage of investments | 1% | |||
Pension plan assets at fair value | $ 4 | 7 | ||
Cash and Cash Equivalents | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Pension plan assets at fair value | $ 16 | $ 43 |
Employee Retirement Benefits (W
Employee Retirement Benefits (Weighted-Average Assumptions Used) (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pension Plan | |||
Weighted average assumptions used to determine benefit obligations | |||
Benefit obligation discount rate | 5.04% | 5.34% | |
Benefit obligation rate of compensation increase | 4% | 4.50% | |
Summary of the weighted average assumtions used to determine net periodic benefit cost | |||
Discount rate | 5.34% | 2.97% | 2.68% |
Expected return on plan assets | 7% | 7% | 7% |
Rate of compensation increase | 4.50% | ||
Pension Plan | Minimum [Member] | |||
Summary of the weighted average assumtions used to determine net periodic benefit cost | |||
Rate of compensation increase | 2.25% | 2.25% | |
Pension Plan | Maximum | |||
Summary of the weighted average assumtions used to determine net periodic benefit cost | |||
Rate of compensation increase | 3.25% | 3.25% | |
Supplemental Employee Retirement Plan | |||
Weighted average assumptions used to determine benefit obligations | |||
Benefit obligation discount rate | 5.11% | 5.42% | |
Benefit obligation rate of compensation increase | 4% | 4.50% | |
Summary of the weighted average assumtions used to determine net periodic benefit cost | |||
Discount rate | 5.42% | 2.90% | 2.52% |
Rate of compensation increase | 4.50% | ||
Supplemental Employee Retirement Plan | Minimum [Member] | |||
Summary of the weighted average assumtions used to determine net periodic benefit cost | |||
Rate of compensation increase | 2.25% | 2.25% | |
Supplemental Employee Retirement Plan | Maximum | |||
Summary of the weighted average assumtions used to determine net periodic benefit cost | |||
Rate of compensation increase | 3.25% | 3.25% |
Employee Retirement Benefits (B
Employee Retirement Benefits (Benefit Obligation Activity Using An Actuarial Measurement Date For Qualified Plan And SERP) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Change in projected benefit obligation: | |||
Benefit obligation, January 1 | $ 282 | $ 362 | |
Service cost | 6 | 9 | $ 10 |
Interest cost | 13 | 10 | 10 |
Actuarial loss (gain) | 10 | (70) | |
Benefits paid | (48) | (29) | |
Projected benefit obligation, December 31 | 263 | 282 | 362 |
Change in plan assets: | |||
Fair value of plan assets, January 1 | 332 | 397 | |
Actual return on plan assets | 33 | (36) | |
Benefits paid | (48) | (29) | |
Fair value of plan assets, December 31 | 317 | 332 | $ 397 |
Funded status: | |||
Funded status, December 31 | 54 | 50 | |
Accumulated benefit obligation | $ 247 | $ 264 |
Employee Retirement Benefits (R
Employee Retirement Benefits (Reconciliation Of The Funded Status For Qualified Plan And SERP) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Retirement Benefits [Abstract] | ||
Other assets | $ 54 | $ 50 |
Total | 54 | 50 |
Pension amounts recognized in accumulated other comprehensive income: | ||
Net actuarial gain | (31) | (36) |
Prior service cost | 1 | 0 |
Total | $ (30) | $ (36) |
Employee Retirement Benefits (C
Employee Retirement Benefits (Components Of Net Periodic Benefit Cost As Well As Other Changes In Plan Assets And Benefit Obligations Recognized In Other Comprehensive Income For Qualified Plan And SERP) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |||
Service cost | $ 6 | $ 9 | $ 10 |
Interest cost | 13 | 10 | 10 |
Expected return on plan assets | (21) | (22) | (21) |
Amortization of actuarial (gain) loss and prior service cost | (2) | 0 | 6 |
Other | (6) | (3) | 1 |
Net periodic benefit cost | (10) | (6) | 6 |
Current year actuarial (gain) loss | (2) | (12) | (62) |
Amortization of actuarial loss | 8 | 3 | (7) |
Current year prior service cost | 0 | 0 | 1 |
Total recognized in other comprehensive (income) loss | 6 | (9) | (68) |
Total recognized in net periodic benefit cost and other comprehensive income | $ (4) | $ (15) | $ (62) |
Employee Retirement Benefits (F
Employee Retirement Benefits (Fair Value Hierarchy Of Assets Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | $ 317 | $ 332 | $ 397 |
Fixed Maturities | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 32 | 44 | |
Fixed Maturities | Level 1 | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 22 | 31 | |
Fixed Maturities | Level 2 | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 10 | 13 | |
Fixed Maturities | Level 3 | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 0 | 0 | |
Fixed Maturities | States, Municipalities and Political Subdivisions | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 6 | 6 | |
Fixed Maturities | States, Municipalities and Political Subdivisions | Level 1 | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 0 | 0 | |
Fixed Maturities | States, Municipalities and Political Subdivisions | Level 2 | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 6 | 6 | |
Fixed Maturities | States, Municipalities and Political Subdivisions | Level 3 | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 0 | 0 | |
Fixed Maturities | Domestic Corporate Debt Securities | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 4 | 7 | |
Fixed Maturities | Domestic Corporate Debt Securities | Level 1 | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 0 | 0 | |
Fixed Maturities | Domestic Corporate Debt Securities | Level 2 | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 4 | 7 | |
Fixed Maturities | Domestic Corporate Debt Securities | Level 3 | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 0 | 0 | |
Fixed Maturities | United States Government | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 22 | 31 | |
Fixed Maturities | United States Government | Level 1 | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 22 | 31 | |
Fixed Maturities | United States Government | Level 2 | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 0 | 0 | |
Fixed Maturities | United States Government | Level 3 | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 0 | 0 | |
Equity Securities | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 269 | 245 | |
Equity Securities | Level 1 | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 269 | 245 | |
Equity Securities | Level 2 | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 0 | 0 | |
Equity Securities | Level 3 | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 0 | 0 | |
Fixed Maturities And Equity Securities | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 301 | 289 | |
Fixed Maturities And Equity Securities | Level 1 | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 291 | 276 | |
Fixed Maturities And Equity Securities | Level 2 | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | 10 | 13 | |
Fixed Maturities And Equity Securities | Level 3 | |||
Defined Benefit Plan Fair Value Disclosure | |||
Pension plan assets at fair value | $ 0 | $ 0 |
Employee Retirement Benefits (E
Employee Retirement Benefits (Expected Future Benefit Payments For Qualified Plan And SERP) (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Retirement Benefits [Abstract] | |
Expected future benefit payments, 2024 | $ 37 |
Expected future benefit payments, 2025 | 27 |
Expected future benefit payments, 2026 | 30 |
Expected future benefit payments, 2027 | 30 |
Expected future benefit payments, 2028 | 31 |
Expected future benefit payments, 2029 - 2033 | $ 128 |
Statutory Accounting Informat_3
Statutory Accounting Information (Schedule Of Statutory Net Income And Statutory Surplus (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
The Cincinnati Insurance Company | |||
Statutory Accounting Practices | |||
Statutory net income | $ 607 | $ 520 | $ 929 |
Capital and surplus | 7,294 | 6,512 | |
The Cincinnati Casualty Company | |||
Statutory Accounting Practices | |||
Statutory net income | 13 | 14 | 15 |
Capital and surplus | 517 | 495 | |
The Cincinnati Indemnity Company | |||
Statutory Accounting Practices | |||
Statutory net income | 3 | 4 | 5 |
Capital and surplus | 130 | 126 | |
The Cincinnati Specialty Underwriters Insurance Company | |||
Statutory Accounting Practices | |||
Statutory net income | 76 | 61 | 47 |
Capital and surplus | 611 | 542 | |
The Cincinnati Life Insurance Company | |||
Statutory Accounting Practices | |||
Statutory net income | 90 | 64 | $ 41 |
Capital and surplus | $ 414 | $ 326 |
Transactions With Affliated Par
Transactions With Affliated Parties (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transaction | |||
Payment for commissions | $ 9 | $ 9 | $ 8 |
Earned premiums | 7,958 | 7,225 | 6,478 |
Affiliated Parties | |||
Related Party Transaction | |||
Earned premiums | $ 51 | $ 47 | $ 47 |
Share-Based Associate Compens_3
Share-Based Associate Compensation Plans (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) peers_exceeded Peers compensation_plans shares | Dec. 31, 2022 USD ($) Peers peers_exceeded shares | Dec. 31, 2021 USD ($) peers_exceeded Peers shares | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Number of equity compensation plans | compensation_plans | 3 | ||
Maximum number of shares awarded to each full-time employee for their service | shares | 10 | ||
Share based compensation cost after tax | $ 32 | $ 29 | $ 26 |
Tax benefit from compensation expense | 8 | 7 | 6 |
Options exercised, intrinsic value | 14 | 21 | 24 |
Options vested, intrinsic value | 0 | 2 | 15 |
Unrecognized compensation costs related to non-vested awards | $ 43 | ||
Expected weighted-average period to recognize the unrecognized compensation costs related to non-vested awards | 1 year 9 months 18 days | ||
Proceeds from stock options exercised | $ 9 | 10 | 13 |
Shares of common stock granted in period (in shares) | shares | 384,000 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Awards exercise peirod | 10 years | ||
Awards vesting period | 3 years | ||
Proceeds from stock options exercised | $ 9 | $ 10 | $ 13 |
Shares repurchased | shares | 72,549 | 80,538 | 77,947 |
Shares repurchased, value | $ 8 | $ 10 | $ 8 |
Weighted average remaining contractual term | 8 years 5 months 12 days | ||
Shares authorized to be granted under the shareholder-approved plans | shares | 10,300,000 | ||
Shares available for future issuance under the plans | shares | 3,600,000 | ||
Stock Options | Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Shares of common stock granted in period (in shares) | shares | 11,524 | ||
Performance Shares | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Number of peers exceeded | peers_exceeded | 2 | 1 | 6 |
Number of peers in peer group | Peers | 8 | 8 | 9 |
Shares, Issued | shares | 0 | 52,335 | |
Awards vesting period | 3 years | 3 years | |
Risk-free rates, minimum | 0% | 0% | 0% |
Risk-free rates, maximum | 200% | 200% | 200% |
share based performance metric for performance shares | 3 years | ||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested In Period Intrinsic Value Aggregate | $ 6 | $ 11 | |
Service Based Shares | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Awards vesting period | 3 years | ||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested In Period Intrinsic Value Aggregate | $ 22 | $ 32 | $ 26 |
Share-Based Associate Compens_4
Share-Based Associate Compensation Plans (Assumptions Used In Grants Issued) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stock Options | |||
Weighted-average fair value of options granted during the period | $ 38.22 | $ 30.34 | $ 19.64 |
Stock Options | Minimum [Member] | |||
Weighted-average expected term | 8 years | 7 years | 7 years |
Expected volatility | 28.25% | 26.34% | 25.56% |
Dividend yield | 2.39% | 2.23% | 2.62% |
Risk-free rates | 3.98% | 1.90% | 0.97% |
Stock Options | Maximum | |||
Weighted-average expected term | 9 years | 9 years | 9 years |
Expected volatility | 29.61% | 28.87% | 27.81% |
Dividend yield | 2.39% | 2.23% | 2.62% |
Risk-free rates | 3.99% | 1.92% | 1.26% |
Performance Based Shares | |||
Weighted-average expected term | 2 years 10 months 9 days | 2 years 10 months 9 days | 2 years 10 months 6 days |
Dividend yield | 2.37% | 2.19% | 2.62% |
Risk-free rates | 4.32% | 1.64% | 0.20% |
Performance Based Shares | Minimum [Member] | |||
Expected volatility | 25.98% | 30.09% | 29.50% |
Performance Based Shares | Maximum | |||
Expected volatility | 47.73% | 49.28% | 47.26% |
Share-Based Associate Compens_5
Share-Based Associate Compensation Plans (Stock Option Information) (Details) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) $ / shares shares | |
Shares | |
Outstanding at beginning of year (in shares) | shares | 3,608 |
Granted (in shares) | shares | 384 |
Exercised (in shares) | shares | (280) |
Forfeited or expired (in shares) | shares | (65) |
Outstanding at end of year (in shares) | shares | 3,647 |
Options exercisable at end of period (in shares) | shares | 2,855 |
Weighted-average exercise price | |
Outstanding at beginning of year (in dollars per share) | $ / shares | $ 86.21 |
Granted (in dollars per share) | $ / shares | 125.57 |
Exercised (in dollars per share) | $ / shares | 59.98 |
Forfeited or expired (in dollars per share) | $ / shares | 86.73 |
Outstanding at end of year (in dollars per share) | $ / shares | 92.36 |
Options exercisable at end of period (in dollars per share) | $ / shares | $ 84.68 |
Aggregate intrinsic value | |
Outstanding at end of year | $ | $ 62 |
Options exercisable at end of period | $ | $ 61 |
Weighted-average remaining contractual life | |
Outstanding option shares at December 31, 2023 | 5 years 5 months 4 days |
Options exercisable at end of period | 4 years 7 months 2 days |
Share-Based Associate Compens_6
Share-Based Associate Compensation Plans (Restricted Stock Unit Information) (Details) - Restricted Stock Units (RSUs) shares in Thousands | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Service Based Shares | |
Nonvested shares | |
Beginning balance (in shares) | shares | 523 |
Granted (in shares) | shares | 174 |
Vested (in shares) | shares | (179) |
Forfeited or canceled (in shares) | shares | (22) |
Ending balance (in shares) | shares | 496 |
Weighted-average grant-date fair value | |
Beginning balance (in dollars per share) | $ / shares | $ 102.26 |
Granted (in dollars per share) | $ / shares | 117.21 |
Vested (in dollars per share) | $ / shares | 104.61 |
Forfeited or canceled (in dollars per share) | $ / shares | 105.73 |
Ending balance (in dollars per share) | $ / shares | $ 106.52 |
Performance Based Shares | |
Nonvested shares | |
Beginning balance (in shares) | shares | 155 |
Granted (in shares) | shares | 70 |
Vested (in shares) | shares | 0 |
Forfeited or canceled (in shares) | shares | (38) |
Ending balance (in shares) | shares | 187 |
Weighted-average grant-date fair value | |
Beginning balance (in dollars per share) | $ / shares | $ 124.69 |
Granted (in dollars per share) | $ / shares | 169.50 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited or canceled (in dollars per share) | $ / shares | 111.77 |
Ending balance (in dollars per share) | $ / shares | $ 144.05 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) segment industry | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Segment Reporting Information | |||
Earned premiums | $ 7,958 | $ 7,225 | $ 6,478 |
Fee revenues | 21 | 14 | 15 |
Other | 13 | 10 | 10 |
Investment income, net of expenses | 894 | 781 | 714 |
Total revenues | 10,013 | 6,563 | 9,626 |
Total income (loss) before income taxes | 2,276 | (694) | 3,698 |
Total assets | $ 32,769 | 29,732 | |
Number of Industries Operated In | industry | 2 | ||
Number of Insurance Segments | segment | 4 | ||
Life Insurance Segment | |||
Segment Reporting Information | |||
Earned premiums | $ 313 | 301 | 294 |
Operating Segments | |||
Segment Reporting Information | |||
Total assets | 5,294 | 5,178 | |
Operating Segments | Commercial Insurance | |||
Segment Reporting Information | |||
Earned premiums | 4,264 | 4,024 | 3,674 |
Fee revenues | 4 | 4 | 4 |
Total revenues | 4,268 | 4,028 | 3,678 |
Income (loss) before income taxes | 168 | 38 | 598 |
Operating Segments | Commercial Insurance | Commercial Casualty Line | |||
Segment Reporting Information | |||
Earned premiums | 1,481 | 1,416 | 1,270 |
Operating Segments | Commercial Insurance | Commercial Property Segment | |||
Segment Reporting Information | |||
Earned premiums | 1,264 | 1,136 | 1,043 |
Operating Segments | Commercial Insurance | Commercial Auto Line | |||
Segment Reporting Information | |||
Earned premiums | 862 | 842 | 794 |
Operating Segments | Commercial Insurance | Workers' Compensation Line | |||
Segment Reporting Information | |||
Earned premiums | 277 | 284 | 268 |
Operating Segments | Commercial Insurance | Other Commercial Lines | |||
Segment Reporting Information | |||
Earned premiums | 380 | 346 | 299 |
Operating Segments | Personal Insurance | |||
Segment Reporting Information | |||
Earned premiums | 2,044 | 1,689 | 1,542 |
Fee revenues | 4 | 4 | 4 |
Total revenues | 2,048 | 1,693 | 1,546 |
Income (loss) before income taxes | (4) | 18 | 97 |
Operating Segments | Personal Insurance | Personal Auto | |||
Segment Reporting Information | |||
Earned premiums | 721 | 626 | 609 |
Operating Segments | Personal Insurance | Homeowner | |||
Segment Reporting Information | |||
Earned premiums | 1,044 | 829 | 726 |
Operating Segments | Personal Insurance | Other Personal Lines | |||
Segment Reporting Information | |||
Earned premiums | 279 | 234 | 207 |
Operating Segments | Excess and Surplus Lines Insurance | |||
Segment Reporting Information | |||
Earned premiums | 542 | 485 | 398 |
Fee revenues | 3 | 2 | 2 |
Total revenues | 545 | 487 | 400 |
Income (loss) before income taxes | 54 | 48 | 44 |
Operating Segments | Life Insurance Segment | |||
Segment Reporting Information | |||
Earned premiums | 313 | 301 | 294 |
Fee revenues | 10 | 4 | 5 |
Total revenues | 323 | 305 | 299 |
Income (loss) before income taxes | 41 | 27 | 12 |
Total assets | 1,562 | 1,518 | |
Operating Segments | Investments Segment | |||
Segment Reporting Information | |||
Investment income, net of expenses | 894 | 781 | 714 |
Investment gains and losses, net | 1,127 | (1,467) | 2,409 |
Total revenues | 2,021 | (686) | 3,123 |
Income (loss) before income taxes | 1,900 | (795) | 3,018 |
Total assets | 24,999 | 22,133 | |
Corporate, Non-Segment | |||
Segment Reporting Information | |||
Earned premiums | 795 | 726 | 570 |
Other | 13 | 10 | 10 |
Total revenues | 808 | 736 | 580 |
Income (loss) before income taxes | 117 | (30) | $ (71) |
Total assets | $ 914 | $ 903 |
Summary of Investments Other _2
Summary of Investments Other Than Investments In Related Parties (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | $ 19,220 |
Fair value | 0 |
Balance sheet | 25,357 |
Fixed Maturities | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 14,361 |
Fair value | 13,791 |
Balance sheet | 13,791 |
Equity Securities | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 4,282 |
Fair value | 10,989 |
Balance sheet | 10,989 |
Other than Securities Investment | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 577 |
Fair value | 0 |
Balance sheet | 577 |
States, Municipalities and Political Subdivisions | Fixed Maturities | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 4,867 |
Fair value | 4,703 |
Balance sheet | 4,703 |
States, Municipalities and Political Subdivisions | Fixed Maturities | Cincinnati Financial Corporation | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 54 |
Fair value | 47 |
Balance sheet | 47 |
States, Municipalities and Political Subdivisions | Fixed Maturities | The Cincinnati Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 3,339 |
Fair value | 3,278 |
Balance sheet | 3,278 |
States, Municipalities and Political Subdivisions | Fixed Maturities | The Cincinnati Casualty Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 239 |
Fair value | 231 |
Balance sheet | 231 |
States, Municipalities and Political Subdivisions | Fixed Maturities | The Cincinnati Indemnity Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 50 |
Fair value | 49 |
Balance sheet | 49 |
States, Municipalities and Political Subdivisions | Fixed Maturities | The Cincinnati Life Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 447 |
Fair value | 388 |
Balance sheet | 388 |
States, Municipalities and Political Subdivisions | Fixed Maturities | The Cincinnati Specialty Underwriters Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 738 |
Fair value | 710 |
Balance sheet | 710 |
United States Government | Fixed Maturities | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 203 |
Fair value | 200 |
Balance sheet | 200 |
United States Government | Fixed Maturities | The Cincinnati Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 122 |
Fair value | 119 |
Balance sheet | 119 |
United States Government | Fixed Maturities | The Cincinnati Casualty Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 1 |
Fair value | 1 |
Balance sheet | 1 |
United States Government | Fixed Maturities | The Cincinnati Indemnity Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 1 |
Fair value | 1 |
Balance sheet | 1 |
United States Government | Fixed Maturities | Cincinnati Global | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 79 |
Fair value | 79 |
Balance sheet | 79 |
Government-Sponsored Enterprises | Fixed Maturities | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 1,227 |
Fair value | 1,224 |
Balance sheet | 1,224 |
Government-Sponsored Enterprises | Fixed Maturities | Cincinnati Financial Corporation | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 103 |
Fair value | 103 |
Balance sheet | 103 |
Government-Sponsored Enterprises | Fixed Maturities | The Cincinnati Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 641 |
Fair value | 641 |
Balance sheet | 641 |
Government-Sponsored Enterprises | Fixed Maturities | The Cincinnati Casualty Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 25 |
Fair value | 25 |
Balance sheet | 25 |
Government-Sponsored Enterprises | Fixed Maturities | The Cincinnati Indemnity Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 6 |
Fair value | 6 |
Balance sheet | 6 |
Government-Sponsored Enterprises | Fixed Maturities | The Cincinnati Life Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 320 |
Fair value | 318 |
Balance sheet | 318 |
Government-Sponsored Enterprises | Fixed Maturities | The Cincinnati Specialty Underwriters Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 126 |
Fair value | 126 |
Balance sheet | 126 |
Government-Sponsored Enterprises | Fixed Maturities | Cincinnati Global | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 6 |
Fair value | 5 |
Balance sheet | 5 |
Foreign Government | Fixed Maturities | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 25 |
Fair value | 25 |
Balance sheet | 25 |
Foreign Government | Fixed Maturities | Cincinnati Global | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 25 |
Fair value | 25 |
Balance sheet | 25 |
All Other Corporate Bonds | Fixed Maturities | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 8,039 |
Fair value | 7,639 |
Balance sheet | 7,639 |
All Other Corporate Bonds | Fixed Maturities | Cincinnati Financial Corporation | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 27 |
Fair value | 26 |
Balance sheet | 26 |
All Other Corporate Bonds | Fixed Maturities | The Cincinnati Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 4,147 |
Fair value | 3,955 |
Balance sheet | 3,955 |
All Other Corporate Bonds | Fixed Maturities | The Cincinnati Casualty Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 98 |
Fair value | 89 |
Balance sheet | 89 |
All Other Corporate Bonds | Fixed Maturities | The Cincinnati Indemnity Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 35 |
Fair value | 33 |
Balance sheet | 33 |
All Other Corporate Bonds | Fixed Maturities | The Cincinnati Life Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 3,176 |
Fair value | 3,005 |
Balance sheet | 3,005 |
All Other Corporate Bonds | Fixed Maturities | The Cincinnati Specialty Underwriters Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 398 |
Fair value | 373 |
Balance sheet | 373 |
All Other Corporate Bonds | Fixed Maturities | Cincinnati Global | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 158 |
Fair value | 158 |
Balance sheet | 158 |
Common Stock | Equity Securities | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 3,869 |
Fair value | 10,641 |
Balance sheet | 10,641 |
Common Stock | Equity Securities | Cincinnati Financial Corporation | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 1,642 |
Fair value | 4,542 |
Balance sheet | 4,542 |
Common Stock | Equity Securities | The Cincinnati Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 2,025 |
Fair value | 5,558 |
Balance sheet | 5,558 |
Common Stock | Equity Securities | The Cincinnati Casualty Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 58 |
Fair value | 171 |
Balance sheet | 171 |
Common Stock | Equity Securities | The Cincinnati Indemnity Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 18 |
Fair value | 40 |
Balance sheet | 40 |
Common Stock | Equity Securities | The Cincinnati Specialty Underwriters Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 109 |
Fair value | 302 |
Balance sheet | 302 |
Common Stock | Equity Securities | CSU Producers Resources Inc. | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 17 |
Fair value | 28 |
Balance sheet | 28 |
Nonredeemable Preferred Stock | Equity Securities | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 413 |
Fair value | 348 |
Balance sheet | 348 |
Nonredeemable Preferred Stock | Equity Securities | Cincinnati Financial Corporation | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 3 |
Fair value | 2 |
Balance sheet | 2 |
Nonredeemable Preferred Stock | Equity Securities | The Cincinnati Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 397 |
Fair value | 334 |
Balance sheet | 334 |
Nonredeemable Preferred Stock | Equity Securities | The Cincinnati Life Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 13 |
Fair value | 12 |
Balance sheet | 12 |
Policy Loans | Other than Securities Investment | The Cincinnati Life Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 33 |
Fair value | 0 |
Balance sheet | 33 |
Lloyd's and other deposits | Other than Securities Investment | Cincinnati Financial Corporation | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 5 |
Fair value | 0 |
Balance sheet | 5 |
Lloyd's and other deposits | Other than Securities Investment | Cincinnati Global | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 39 |
Fair value | 0 |
Balance sheet | 39 |
Limited Partnership | Other than Securities Investment | Cincinnati Financial Corporation | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 40 |
Fair value | 0 |
Balance sheet | 40 |
Limited Partnership | Other than Securities Investment | The Cincinnati Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 389 |
Balance sheet | 389 |
Limited Partnership | Other than Securities Investment | The Cincinnati Life Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 5 |
Balance sheet | 5 |
Real Estate | Other than Securities Investment | Cincinnati Financial Corporation | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 4 |
Balance sheet | 4 |
Real Estate | Other than Securities Investment | The Cincinnati Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 58 |
Balance sheet | 58 |
Real Estate | Other than Securities Investment | The Cincinnati Life Insurance Company | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data | |
Cost or amortized cost | 4 |
Balance sheet | $ 4 |
Condensed Financial Statement_2
Condensed Financial Statements Of Parent Company Condensed Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Investments | ||||
Fair value of fixed maturities | $ 13,791 | $ 12,132 | ||
Fair value of equity securities | 10,989 | 9,841 | ||
Other invested assets | 577 | 452 | ||
Total investments | 25,357 | 22,425 | ||
Investment income receivable | 192 | 160 | ||
Land, building and equipment, net, for company use (accumulated depreciation: 2023—$164; 2022—$156) | 208 | 202 | ||
Other assets | 681 | 646 | ||
Total assets | 32,769 | 29,732 | ||
Liabilities | ||||
Deferred federal income tax | 1,705 | 1,376 | ||
Long-term debt | 790 | 789 | ||
Other liabilities | 1,311 | 1,229 | ||
Total liabilities | 20,671 | 19,170 | ||
Shareholders' Equity | ||||
Common stock | 397 | 397 | ||
Paid-in capital | 1,437 | 1,392 | ||
Retained earnings | 13,084 | 11,711 | ||
Accumulated other comprehensive income | (435) | (614) | ||
Treasury stock at cost | (2,385) | (2,324) | ||
Total shareholders' equity | 12,098 | 10,562 | $ 12,764 | |
Total liabilities and shareholders' equity | 32,769 | 29,732 | ||
Cincinnati Financial Corporation | ||||
Investments | ||||
Fair value of fixed maturities | 176 | 78 | ||
Fair value of equity securities | 4,544 | 3,978 | ||
Other invested assets | 49 | 53 | ||
Total investments | 4,769 | 4,109 | ||
Cash and cash equivalents | 138 | 121 | $ 211 | $ 16 |
Equity in net assets of subsidiaries | 8,481 | 7,427 | ||
Investment income receivable | 13 | 11 | ||
Land, building and equipment, net, for company use (accumulated depreciation: 2023—$164; 2022—$156) | 138 | 136 | ||
Income tax receivable | 4 | 5 | ||
Other assets | 150 | 116 | ||
Due from subsidiaries | 40 | 102 | ||
Total assets | 13,733 | 12,027 | ||
Liabilities | ||||
Dividends declared but unpaid | 118 | 108 | ||
Deferred federal income tax | 624 | 480 | ||
Long-term debt | 789 | 789 | ||
Other liabilities | 104 | 88 | ||
Total liabilities | 1,635 | 1,465 | ||
Shareholders' Equity | ||||
Common stock | 397 | 397 | ||
Paid-in capital | 1,437 | 1,392 | ||
Retained earnings | 13,084 | 11,711 | ||
Accumulated other comprehensive income | (435) | (614) | ||
Treasury stock at cost | (2,385) | (2,324) | ||
Total shareholders' equity | 12,098 | 10,562 | ||
Total liabilities and shareholders' equity | $ 13,733 | $ 12,027 |
Condensed Financial Statement_3
Condensed Financial Statements Of Parent Company Condensed Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Condensed Financial Statements, Captions | ||
Equity securities, cost | $ 4,282 | $ 4,294 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 337 | 322 |
Cincinnati Financial Corporation | ||
Condensed Financial Statements, Captions | ||
Amortized cost of fixed maturities | 184 | 91 |
Equity securities, cost | 1,645 | 1,734 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 164 | $ 156 |
Condensed Financial Statement_4
Condensed Financial Statements Of Parent Company Condensed Statements Of Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues | |||
Investment income, net of expenses | $ 894 | $ 781 | $ 714 |
Investment gains and losses, net | 1,127 | (1,467) | 2,409 |
Other revenues | 13 | 10 | 10 |
Total revenues | 10,013 | 6,563 | 9,626 |
Expenses | |||
Interest expense | 54 | 53 | 53 |
Other expenses | 25 | 23 | 20 |
Total expenses | 7,737 | 7,257 | 5,928 |
Provision (Benefit) for Income Taxes | 433 | (207) | 730 |
Net Income (Loss) | 1,843 | (487) | 2,968 |
Amortization of pension actuarial gains and losses and prior service costs | (5) | 7 | 54 |
Other comprehensive income (loss) | 179 | (911) | (38) |
Comprehensive Income (Loss) | 2,022 | (1,398) | 2,930 |
Cincinnati Financial Corporation | |||
Revenues | |||
Investment income, net of expenses | 109 | 101 | 91 |
Investment gains and losses, net | 644 | (790) | 1,058 |
Other revenues | 15 | 15 | 15 |
Total revenues | 768 | (674) | 1,164 |
Expenses | |||
Interest expense | 52 | 53 | 53 |
Other expenses | 38 | 33 | 32 |
Total expenses | 90 | 86 | 85 |
Income (Loss) Before Income Taxes and Earnings of Subsidiaries | 678 | (760) | 1,079 |
Provision (Benefit) for Income Taxes | 134 | (161) | 217 |
Net Income (Loss) Before Earnings of Subsidiaries | 544 | (599) | 862 |
Increase in equity of subsidiaries | 1,299 | 112 | 2,106 |
Net Income (Loss) | 1,843 | (487) | 2,968 |
Change in unrealized gain (loss) on securities | 4 | (10) | 1 |
Amortization of pension actuarial gains and losses and prior service costs | (5) | 7 | 54 |
Other Comprehensive Income (Loss) Before Other Comprehensive Income (Loss) from Subsidiaries | (1) | (3) | 55 |
Other Comprehensive Income (Loss) of subsidiaries | 180 | (908) | (93) |
Other comprehensive income (loss) | 179 | (911) | (38) |
Comprehensive Income (Loss) | $ 2,022 | $ (1,398) | $ 2,930 |
Condensed Financial Statement_5
Condensed Financial Statements Of Parent Company Condensed Statements Of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash Flows From Operating Activities | |||
Net Income (Loss) | $ 1,843 | $ (487) | $ 2,968 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, amortization and other | 112 | 127 | 118 |
Investment gains and losses, net | (1,108) | 1,493 | (2,353) |
Changes in: | |||
Current income tax receivable/payable | 42 | (40) | (25) |
Other assets | (30) | 28 | (11) |
Net cash provided by operating activities | 2,052 | 2,052 | 1,981 |
Cash Flows From Investing Activities | |||
Sale, call or maturity of fixed maturities | 1,136 | 1,113 | 1,461 |
Sale of equity securities | 206 | 430 | 136 |
Purchase of fixed maturities | (2,554) | (1,901) | (2,388) |
Purchase of equity securities | (220) | (466) | (313) |
Investment in buildings and equipment | (18) | (15) | (15) |
Change in other invested assets, net | (143) | (101) | 64 |
Net cash (used in) received from investing activities | (1,608) | (933) | (1,057) |
Cash Flows From Financing Activities | |||
Payment of cash dividends to shareholders | (454) | (423) | (395) |
Shares acquired - share repurchase authorization | (67) | (410) | (144) |
Proceeds from stock options exercised | 9 | 10 | 13 |
Other | (129) | (93) | (98) |
Net cash used in financing activities | (801) | (994) | (685) |
Net change in cash and cash equivalents | (357) | 125 | 239 |
Cincinnati Financial Corporation | |||
Cash Flows From Operating Activities | |||
Net Income (Loss) | 1,843 | (487) | 2,968 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, amortization and other | 10 | 9 | 10 |
Investment gains and losses, net | (644) | 792 | (1,034) |
Dividends from subsidiaries | 426 | 729 | 598 |
Changes in: | |||
Increase in equity of subsidiaries | (1,299) | (112) | (2,106) |
Current federal income taxes | 1 | (6) | 6 |
Current income tax receivable/payable | 144 | (183) | 220 |
Other assets | (12) | (7) | 5 |
Other liabilities | 3 | 1 | 0 |
Intercompany receivable for operations | 95 | 28 | 5 |
Net cash provided by operating activities | 567 | 764 | 672 |
Cash Flows From Investing Activities | |||
Sale, call or maturity of fixed maturities | 17 | 1 | 22 |
Sale of equity securities | 138 | 192 | 25 |
Purchase of fixed maturities | (119) | (30) | (19) |
Purchase of equity securities | (65) | (187) | (82) |
Investment in buildings and equipment | (10) | (4) | (6) |
Change in other invested assets, net | 0 | (4) | 108 |
Net cash (used in) received from investing activities | (39) | (32) | 48 |
Cash Flows From Financing Activities | |||
Payment of cash dividends to shareholders | (454) | (423) | (395) |
Shares acquired - share repurchase authorization | (67) | (410) | (144) |
Proceeds from stock options exercised | 9 | 10 | 13 |
Other | 1 | 1 | 1 |
Net cash used in financing activities | (511) | (822) | (525) |
Net change in cash and cash equivalents | 17 | (90) | 195 |
Cash and cash equivalents at beginning of year | 121 | 211 | 16 |
Cash and cash equivalents at end of year | $ 138 | $ 121 | $ 211 |
Supplementary Insurance Infor_2
Supplementary Insurance Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Supplementary Insurance Information, by Segment | |||
Deferred policy acquisition costs | $ 1,093 | $ 1,013 | $ 916 |
Gross future policy benefits, losses, claims and expense losses | 12,069 | 11,374 | 10,727 |
Gross unearned premium | 4,119 | 3,689 | 3,271 |
Other policy claims and benefits payable | 49 | 41 | 53 |
Earned premiums | 7,958 | 7,225 | 6,478 |
Investment income, net of expenses | 786 | 680 | 623 |
Benefits, claims losses and settlement expense | 5,274 | 5,019 | 3,909 |
Amortization of deferred policy acquisition costs | 1,450 | 1,330 | 1,176 |
Underwriting, acquisition and insurance expenses | 934 | 832 | 770 |
Net written premiums | 8,048 | 7,309 | 6,481 |
Commercial Insurance | |||
Supplementary Insurance Information, by Segment | |||
Deferred policy acquisition costs | 387 | 372 | 345 |
Gross future policy benefits, losses, claims and expense losses | 5,887 | 5,568 | 5,007 |
Gross unearned premium | 2,111 | 2,021 | 1,857 |
Earned premiums | 4,264 | 4,024 | 3,674 |
Benefits, claims losses and settlement expense | 2,787 | 2,761 | 1,940 |
Amortization of deferred policy acquisition costs | 808 | 769 | 703 |
Underwriting, acquisition and insurance expenses | 505 | 460 | 437 |
Net written premiums | 4,336 | 4,159 | 3,811 |
Personal Insurance | |||
Supplementary Insurance Information, by Segment | |||
Deferred policy acquisition costs | 210 | 168 | 145 |
Gross future policy benefits, losses, claims and expense losses | 990 | 916 | 814 |
Gross unearned premium | 1,253 | 994 | 850 |
Earned premiums | 2,044 | 1,689 | 1,542 |
Benefits, claims losses and settlement expense | 1,442 | 1,166 | 992 |
Amortization of deferred policy acquisition costs | 367 | 311 | 276 |
Underwriting, acquisition and insurance expenses | 243 | 198 | 181 |
Net written premiums | 2,302 | 1,831 | 1,594 |
Excess and Surplus Lines Insurance | |||
Supplementary Insurance Information, by Segment | |||
Deferred policy acquisition costs | 43 | 37 | 33 |
Gross future policy benefits, losses, claims and expense losses | 932 | 753 | 577 |
Gross unearned premium | 273 | 236 | 207 |
Earned premiums | 542 | 485 | 398 |
Benefits, claims losses and settlement expense | 350 | 315 | 250 |
Amortization of deferred policy acquisition costs | 89 | 79 | 63 |
Underwriting, acquisition and insurance expenses | 52 | 45 | 43 |
Net written premiums | 570 | 502 | 426 |
Reinsurance assumed and other non segment | |||
Supplementary Insurance Information, by Segment | |||
Deferred policy acquisition costs | 109 | 105 | 79 |
Gross future policy benefits, losses, claims and expense losses | 1,166 | 1,099 | 831 |
Gross unearned premium | 481 | 437 | 356 |
Earned premiums | 795 | 726 | 570 |
Benefits, claims losses and settlement expense | 379 | 474 | 414 |
Amortization of deferred policy acquisition costs | 157 | 144 | 109 |
Underwriting, acquisition and insurance expenses | 76 | 72 | 55 |
Net written premiums | 838 | 815 | 648 |
Property, Liability and Casualty Insurance | |||
Supplementary Insurance Information, by Segment | |||
Deferred policy acquisition costs | 749 | 682 | 602 |
Gross future policy benefits, losses, claims and expense losses | 8,975 | 8,336 | 7,229 |
Gross unearned premium | 4,118 | 3,688 | 3,270 |
Earned premiums | 7,645 | 6,924 | 6,184 |
Investment income, net of expenses | 602 | 509 | 457 |
Benefits, claims losses and settlement expense | 4,958 | 4,716 | 3,596 |
Amortization of deferred policy acquisition costs | 1,421 | 1,303 | 1,151 |
Underwriting, acquisition and insurance expenses | 876 | 775 | 716 |
Net written premiums | 8,046 | 7,307 | 6,479 |
Accident and Health Insurance | |||
Supplementary Insurance Information, by Segment | |||
Net written premiums | 2 | 2 | 2 |
Life Insurance Segment | |||
Supplementary Insurance Information, by Segment | |||
Deferred policy acquisition costs | 344 | 331 | 314 |
Gross future policy benefits, losses, claims and expense losses | 3,094 | 3,038 | 3,498 |
Gross unearned premium | 1 | 1 | 1 |
Other policy claims and benefits payable | 49 | 41 | 53 |
Earned premiums | 313 | 301 | 294 |
Investment income, net of expenses | 184 | 171 | 166 |
Benefits, claims losses and settlement expense | 316 | 303 | 313 |
Amortization of deferred policy acquisition costs | 29 | 27 | 25 |
Underwriting, acquisition and insurance expenses | $ 58 | $ 57 | $ 54 |
Reinsurance (Details)
Reinsurance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance | |||
Gross amounts, life insurance in force | $ 122,053 | $ 120,147 | $ 116,697 |
Gross amounts | 7,801 | 7,056 | 6,366 |
Ceded amounts to other companies, life insurance in force | 39,692 | 39,665 | 39,204 |
Ceded premiums earned | 412 | 392 | 331 |
Assumed amounts from other companies, life insurance in force | 0 | 0 | 0 |
Assumed amounts from other companies | 569 | 561 | 443 |
Net amounts, life insurance in force | 82,361 | 80,482 | 77,493 |
Premiums Earned, Net | $ 7,958 | $ 7,225 | $ 6,478 |
Percentage of amounts assumed to net, life insurance in force | 0% | 0% | 0% |
Percentage of amounts assumed to net | 7.20% | 7.80% | 6.80% |
Commercial Insurance | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance | |||
Gross amounts | $ 4,399 | $ 4,150 | $ 3,777 |
Ceded premiums earned | 147 | 137 | 115 |
Assumed amounts from other companies | 12 | 11 | 12 |
Premiums Earned, Net | $ 4,264 | $ 4,024 | $ 3,674 |
Percentage of amounts assumed to net | 0.30% | 0.30% | 0.30% |
Personal Insurance | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance | |||
Gross amounts | $ 2,117 | $ 1,755 | $ 1,586 |
Ceded premiums earned | 74 | 67 | 45 |
Assumed amounts from other companies | 1 | 1 | 1 |
Premiums Earned, Net | $ 2,044 | $ 1,689 | $ 1,542 |
Percentage of amounts assumed to net | 0% | 0.10% | 0.10% |
Excess and Surplus Lines Insurance | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance | |||
Gross amounts | $ 572 | $ 510 | $ 417 |
Ceded premiums earned | 30 | 25 | 19 |
Assumed amounts from other companies | 0 | 0 | 0 |
Premiums Earned, Net | $ 542 | $ 485 | $ 398 |
Percentage of amounts assumed to net | 0% | 0% | 0% |
Reinsurance assumed and other non segment | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance | |||
Gross amounts | $ 319 | $ 262 | $ 216 |
Ceded premiums earned | 80 | 85 | 76 |
Assumed amounts from other companies | 556 | 549 | 430 |
Premiums Earned, Net | $ 795 | $ 726 | $ 570 |
Percentage of amounts assumed to net | 69.90% | 75.60% | 75.40% |
Property, Liability and Casualty Insurance | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance | |||
Gross amounts | $ 7,407 | $ 6,677 | $ 5,996 |
Ceded premiums earned | 331 | 314 | 255 |
Assumed amounts from other companies | 569 | 561 | 443 |
Premiums Earned, Net | $ 7,645 | $ 6,924 | $ 6,184 |
Percentage of amounts assumed to net | 7.40% | 8.10% | 7.20% |
Life Insurance Segment | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance | |||
Gross amounts | $ 394 | $ 379 | $ 370 |
Ceded premiums earned | 81 | 78 | 76 |
Assumed amounts from other companies | 0 | 0 | 0 |
Premiums Earned, Net | $ 313 | $ 301 | $ 294 |
Percentage of amounts assumed to net | 0% | 0% | 0% |
Valuation And Qualifying Acco_2
Valuation And Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Valuation and allowance roll forward | |||
Beginning balance, January 1 | $ 48 | $ 69 | |
Ending balance, December 31 | 36 | 48 | $ 69 |
Allowance for doubtful receivables | |||
Valuation and allowance roll forward | |||
Beginning balance, January 1 | 17 | 16 | 22 |
Additions charged to costs and expenses | 33 | 15 | 14 |
Deductions | (14) | (14) | (20) |
Ending balance, December 31 | 36 | 17 | 16 |
Deferred tax valuation allowance | |||
Valuation and allowance roll forward | |||
Beginning balance, January 1 | 31 | 53 | 56 |
Additions charged to costs and expenses | 0 | 0 | 0 |
Deductions | (31) | (22) | (3) |
Ending balance, December 31 | $ 0 | $ 31 | $ 53 |
Supplementary Information Con_2
Supplementary Information Concerning Property Casualty Insurance Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property Casualty Insurance Underwriters | |||
Deferred policy acquisition costs | $ 749 | $ 682 | $ 602 |
Reserves for unpaid claims and claim adjustment expenses | 8,975 | 8,336 | 7,229 |
Unearned premiums | 4,118 | 3,688 | 3,270 |
Earned premiums | 7,645 | 6,924 | 6,184 |
Investment income | 602 | 509 | 457 |
Loss and loss expenses incurred related to current accident year | 5,173 | 4,875 | 4,024 |
Prior year claims and claims adjustments expense, (favorable) and unfavorable | (215) | (159) | (428) |
Amortization of deferred policy acquisition cost | 1,421 | 1,303 | 1,151 |
Paid loss and loss expenses | 4,276 | 3,687 | 3,094 |
Net written premiums | 8,046 | 7,307 | 6,479 |
Commercial Insurance | |||
Property Casualty Insurance Underwriters | |||
Deferred policy acquisition costs | 387 | 372 | 345 |
Reserves for unpaid claims and claim adjustment expenses | 5,887 | 5,568 | 5,007 |
Unearned premiums | 2,111 | 2,021 | 1,857 |
Earned premiums | 4,264 | 4,024 | 3,674 |
Investment income | 0 | 0 | 0 |
Loss and loss expenses incurred related to current accident year | 2,910 | 2,837 | 2,293 |
Prior year claims and claims adjustments expense, (favorable) and unfavorable | (123) | (76) | (353) |
Amortization of deferred policy acquisition cost | 808 | 769 | 703 |
Paid loss and loss expenses | 2,480 | 2,211 | 1,806 |
Net written premiums | 4,336 | 4,159 | 3,811 |
Personal Insurance | |||
Property Casualty Insurance Underwriters | |||
Deferred policy acquisition costs | 210 | 168 | 145 |
Reserves for unpaid claims and claim adjustment expenses | 990 | 916 | 814 |
Unearned premiums | 1,253 | 994 | 850 |
Earned premiums | 2,044 | 1,689 | 1,542 |
Investment income | 0 | 0 | 0 |
Loss and loss expenses incurred related to current accident year | 1,506 | 1,227 | 1,042 |
Prior year claims and claims adjustments expense, (favorable) and unfavorable | (64) | (61) | (50) |
Amortization of deferred policy acquisition cost | 367 | 311 | 276 |
Paid loss and loss expenses | 1,353 | 1,071 | 914 |
Net written premiums | 2,302 | 1,831 | 1,594 |
Excess and Surplus Lines Insurance | |||
Property Casualty Insurance Underwriters | |||
Deferred policy acquisition costs | 43 | 37 | 33 |
Reserves for unpaid claims and claim adjustment expenses | 932 | 753 | 577 |
Unearned premiums | 273 | 236 | 207 |
Earned premiums | 542 | 485 | 398 |
Investment income | 0 | 0 | 0 |
Loss and loss expenses incurred related to current accident year | 361 | 324 | 243 |
Prior year claims and claims adjustments expense, (favorable) and unfavorable | (11) | (9) | 7 |
Amortization of deferred policy acquisition cost | 89 | 79 | 63 |
Paid loss and loss expenses | 183 | 145 | 118 |
Net written premiums | 570 | 502 | 426 |
Reinsurance assumed and other non segment | |||
Property Casualty Insurance Underwriters | |||
Deferred policy acquisition costs | 109 | 105 | 79 |
Reserves for unpaid claims and claim adjustment expenses | 1,166 | 1,099 | 831 |
Unearned premiums | 481 | 437 | 356 |
Earned premiums | 795 | 726 | 570 |
Investment income | 0 | 0 | 0 |
Loss and loss expenses incurred related to current accident year | 396 | 487 | 446 |
Prior year claims and claims adjustments expense, (favorable) and unfavorable | (17) | (13) | (32) |
Amortization of deferred policy acquisition cost | 157 | 144 | 109 |
Paid loss and loss expenses | 260 | 260 | 256 |
Net written premiums | $ 838 | $ 815 | $ 648 |