Document_and_Entity_Informatio
Document and Entity Information Document (USD $) | 12 Months Ended |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 |
Document and Entity Information [Abstract] | |
Entity Registrant Name | CNA FINANCIAL CORP |
Entity Central Index Key | 21175 |
Current Fiscal Year End Date | -19 |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-K |
Document Period End Date | 31-Dec-14 |
Document Fiscal Year Focus | 2014 |
Document Fiscal Period Focus | FY |
Amendment Flag | FALSE |
Entity Common Stock, Shares Outstanding | 270,015,043 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Public Float | $1,084 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Revenues | |||||
Net earned premiums | $7,212 | $7,271 | $6,881 | ||
Net investment income | 2,067 | 2,282 | 2,110 | ||
Net realized investment gains (losses): | |||||
Other-than-temporary impairment losses | -77 | -74 | -127 | ||
Portion of other-than-temporary impairments recognized in Other comprehensive income | -2 | -23 | |||
Net other-than-temporary impairment losses recognized in earnings | -77 | -76 | -150 | ||
Other net realized investment gains (loss) | 134 | 96 | 204 | ||
Net realized investment gains (losses) | 57 | 20 | 54 | ||
Other revenues | 356 | 359 | 319 | ||
Total revenues | 9,692 | 9,932 | 9,364 | ||
Claims, Benefits and Expenses | |||||
Insurance claims and policyholders' benefits | 5,591 | 5,806 | 5,729 | ||
Amortization of deferred acquisition costs | 1,317 | 1,362 | 1,274 | ||
Other operating expenses | 1,394 | 1,322 | 1,332 | ||
Interest | 183 | 166 | 170 | ||
Total claims, benefits and expenses | 8,485 | 8,656 | 8,505 | ||
Income (loss) from continuing operations before income tax | 1,207 | 1,276 | 859 | ||
Income tax expense (benefit) | -319 | -361 | -239 | ||
Net income (loss) from continuing operations | 888 | 915 | 620 | ||
(Loss) income from discontinued operations, net of income tax benefit (expense) | -197 | 22 | 8 | ||
Net income (loss) | $691 | [1] | $937 | $628 | |
Basic Earnings (Loss) Per Share Attributable to CNA | |||||
Income (loss) from continuing operations | $3.29 | $3.39 | $2.30 | ||
(Loss) income from discontinued operations | ($0.73) | $0.09 | $0.03 | ||
Basic earnings (loss) per share | $2.56 | $3.48 | $2.33 | ||
Diluted Earnings (Loss) Per Share Attributable to CNA | |||||
Income (loss) from continuing operations | $3.28 | $3.39 | $2.30 | ||
(Loss) income from discontinued operations | ($0.73) | $0.08 | $0.03 | ||
Diluted earnings (loss) per share | $2.55 | $3.47 | [2] | $2.33 | |
Dividends per share | $2 | $0.80 | $0.60 | ||
Weighted Average Outstanding Common Stock and Common Stock Equivalents | |||||
Basic | 269.9 | 269.7 | 269.4 | ||
Diluted | 270.6 | 270.2 | 269.8 | ||
[1] | Net income in the first quarter of 2014 includes the impairment loss on the sale of CAC. | ||||
[2] | Due to the averaging of shares, quarterly earnings per share do not add to the total for the full year. |
Consolidated_Statements_of_Ope1
Consolidated Statements of Operations Parenthetical (Parentheticals) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
Income tax benefit (expense) on discontinued operations | $34 | ($15) | ($5) |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Other Comprehensive Income (Loss), Net of Tax, Changes In: | ||||
Other than Temporary Impairment Losses, Investments, Portion in Other Comprehensive Loss, Net of Tax, Portion Attributable to Parent, Available-for-sale Securities | $15 | $6 | $84 | |
Net unrealized gains (losses) on other investments | 267 | -679 | 339 | |
Net unrealized gains (losses) on investments | 282 | -673 | 423 | |
Net unrealized losses on discontinued operations | -22 | |||
Foreign currency translation adjustment | -95 | -11 | 40 | |
Pension and postretirement benefits | -207 | 295 | -112 | |
Other comprehensive income (loss), net of tax | -42 | -389 | 351 | |
Net income (loss) | 691 | [1] | 937 | 628 |
Total comprehensive income (loss) | $649 | $548 | $979 | |
[1] | Net income in the first quarter of 2014 includes the impairment loss on the sale of CAC. |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets | ||
Fixed maturity securities at fair value (amortized cost of $37,335 and $39,311) | $40,768 | $41,233 |
Equity securities at fair value (cost of $210 and $179) | 222 | 185 |
Limited partnership investments | 2,937 | 2,720 |
Other invested assets | 41 | 54 |
Mortgage loans | 588 | 508 |
Short term investments | 1,706 | 1,407 |
Total investments | 46,262 | 46,107 |
Cash | 190 | 195 |
Reinsurance receivables (less allowance for uncollectible receivables of $48 and $71) | 4,694 | 6,017 |
Insurance receivables (less allowance for uncollectible receivables of $61 and $84) | 1,936 | 1,979 |
Accrued investment income | 405 | 443 |
Deferred acquisition costs | 600 | 624 |
Deferred income taxes | 191 | 220 |
Property and equipment at cost (less accumulated depreciation of $364 and $365) | 295 | 304 |
Goodwill | 152 | 155 |
Other assets | 841 | 969 |
Separate account business | 181 | |
Total assets | 55,566 | 57,194 |
Liabilities | ||
Claim and claim adjustment expenses | 23,271 | 24,089 |
Unearned premiums | 3,592 | 3,718 |
Future policy benefits | 9,490 | 10,471 |
Policyholders’ funds | 27 | 116 |
Short term debt | 549 | |
Long term debt | 2,559 | 2,011 |
Other liabilities (includes $153 and $197 due to Loews Corporation) | 3,833 | 3,408 |
Separate account business | 181 | |
Total liabilities | 42,772 | 44,543 |
Stockholders' Equity | ||
Common stock ($2.50 par value; 500,000,000 shares authorized; 273,040,243 shares issued; 269,980,202 and 269,717,583 shares outstanding) | 683 | 683 |
Additional paid-in capital | 2,151 | 2,145 |
Retained earnings | 9,645 | 9,495 |
Accumulated other comprehensive income (loss) | 400 | 442 |
Treasury stock (3,060,041 and 3,322,660 shares), at cost | -84 | -91 |
Notes receivable for the issuance of common stock | -1 | -23 |
Total stockholders’ equity | 12,794 | 12,651 |
Total liabilities and stockholders' equity | $55,566 | $57,194 |
Consolidated_Balance_Sheet_Par
Consolidated Balance Sheet Parentheticals (Parentheticals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Fixed maturities securities at amortized cost | $37,335 | $39,311 |
Equity securities at cost | 210 | 179 |
Allowance for uncollectible reinsurance receivables | 48 | 71 |
Allowance for uncollectible insurance receivables | 61 | 84 |
Accumulated depreciation on property and equipment | 364 | 365 |
Due to Related Parties | $153 | $197 |
Common stock, par value | $0 | $2.50 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 273,040,243 | 273,040,243 |
Common stock, shares outstanding | 269,980,202 | 269,717,583 |
Treasury stock, shares | 3,060,041 | 3,322,660 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Cash Flows from Operating Activities | ||||
Net income (loss) | $691 | [1] | $937 | $628 |
Adjustments to reconcile net income (loss) to net cash flows provided (used) by operating activities: | ||||
Loss on sale of subsidiary | 251 | |||
Deferred income tax expense (benefit) | 3 | 77 | 147 | |
Trading portfolio activity | 16 | -10 | -23 | |
Net realized investment (gains) losses | -60 | -31 | -63 | |
Equity method investees | 83 | -323 | -89 | |
Amortization of investments | 3 | -24 | -55 | |
Depreciation and amortization | 83 | 101 | 125 | |
Changes in: | ||||
Receivables, net | 731 | 44 | 49 | |
Accrued investment income | -9 | 4 | ||
Deferred acquisition costs | 44 | 2 | -16 | |
Insurance reserves | -363 | -68 | 430 | |
Other assets | -48 | -27 | 144 | |
Other liabilities | -48 | 525 | -49 | |
Other, net | 54 | 10 | 18 | |
Total adjustments | 749 | 267 | 622 | |
Net cash flows provided (used) by operating activities | 1,440 | 1,204 | 1,250 | |
Dispositions: | ||||
Fixed maturity securities - sales | 4,914 | 6,869 | 6,123 | |
Fixed maturity securities - maturities, calls and redemptions | 3,983 | 3,271 | 3,699 | |
Equity securities | 31 | 103 | 86 | |
Limited partnerships | 167 | 108 | 165 | |
Mortgage loans | 57 | 22 | 7 | |
Purchases: | ||||
Fixed maturity securities | -9,365 | -11,197 | -10,299 | |
Equity securities | -67 | -77 | -54 | |
Limited partnerships | -271 | -223 | -228 | |
Mortgage loans | -137 | -129 | -174 | |
Change in other investments | 15 | -22 | 22 | |
Change in short term investments | -388 | 425 | -7 | |
Purchase of Hardy | -197 | |||
Purchases of property and equipment | -71 | -91 | -94 | |
Proceeds from sale of subsidiaries | 198 | |||
Other dispositions | 32 | 1 | ||
Other, net | 16 | 11 | 16 | |
Net cash flows provided (used) by investing activities | -918 | -898 | -934 | |
Cash Flows from Financing Activities | ||||
Dividends paid to common stockholders | -541 | -216 | -162 | |
Proceeds from the issuance of debt | 546 | |||
Repayment of debt | -549 | -13 | -70 | |
Other, net | 25 | -35 | -7 | |
Net cash flows provided (used) by financing activities | -519 | -264 | -239 | |
Effect of foreign exchange rate changes on cash | -8 | -3 | 4 | |
Net change in cash | -5 | 39 | 81 | |
Cash, beginning of year | 195 | 156 | 75 | |
Cash, end of year | $190 | $195 | $156 | |
[1] | Net income in the first quarter of 2014 includes the impairment loss on the sale of CAC. |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common stock [Member] | Additional paid-in capital [Member] | Retained earnings [Member] | Accumulated other comprehensive income (loss) [Member] | Treasury stock [Member] | Notes receivable for the issuance of common stock [Member] | |
In Millions, unless otherwise specified | ||||||||
Balance at Dec. 31, 2011 | $683 | $2,141 | $8,308 | $480 | ($102) | ($22) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 628 | 628 | ||||||
Other comprehensive income (loss), net of tax | 351 | 351 | ||||||
Dividends paid to common stockholders | -162 | |||||||
Stock-based compensation | 5 | 3 | ||||||
(Decrease) increase in notes receivable from the issuance of common stock | 1 | |||||||
Balance at Dec. 31, 2012 | 12,314 | 683 | 2,146 | 8,774 | 831 | -99 | -21 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 937 | 937 | ||||||
Other comprehensive income (loss), net of tax | -389 | -389 | ||||||
Dividends paid to common stockholders | -216 | |||||||
Stock-based compensation | -1 | 8 | ||||||
(Decrease) increase in notes receivable from the issuance of common stock | -2 | |||||||
Balance at Dec. 31, 2013 | 12,651 | 683 | 2,145 | 9,495 | 442 | -91 | -23 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 691 | [1] | 691 | |||||
Other comprehensive income (loss), net of tax | -42 | -42 | ||||||
Dividends paid to common stockholders | -541 | |||||||
Stock-based compensation | 6 | 7 | ||||||
(Decrease) increase in notes receivable from the issuance of common stock | 22 | |||||||
Balance at Dec. 31, 2014 | $12,794 | $683 | $2,151 | $9,645 | $400 | ($84) | ($1) | |
[1] | Net income in the first quarter of 2014 includes the impairment loss on the sale of CAC. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Summary of Significant Accounting Policies | Note A. Summary of Significant Accounting Policies | ||||||||||
Basis of Presentation | |||||||||||
The Consolidated Financial Statements include the accounts of CNA Financial Corporation (CNAF) and its subsidiaries. Collectively, CNAF and its subsidiaries are referred to as CNA or the Company. Loews Corporation (Loews) owned approximately 90% of the outstanding common stock of CNAF as of December 31, 2014. | |||||||||||
The accompanying Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). Intercompany amounts have been eliminated. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates. | |||||||||||
Business | |||||||||||
The Company's core property and casualty insurance operations are reported in three business segments: Specialty, Commercial and International. The Company's non-core operations are managed in two segments: Life & Group Non-Core and Corporate & Other Non-Core. Each segment is managed separately due to differences in their markets and product mix. | |||||||||||
As a result of realigned management responsibilities, the Company revised its property and casualty segments in the fourth quarter of 2014. Results of CNA Europe and Canada that were previously included in the Specialty and Commercial segments are now included in the International segment. There was no change in the Company's Life & Group Non-Core and Corporate & Other Non-Core segments. Prior period segment disclosures have been conformed to the current year presentation. The new segment structure reflects the way management currently reviews results and makes business decisions. | |||||||||||
Core insurance products primarily include commercial property and casualty coverages, including surety. Non-core insurance products, which have been placed in run-off, primarily include long term care. CNA services include risk management, information services, warranty and claims administration. The Company's products and services are primarily marketed through independent agents, brokers and managing general underwriters to a wide variety of customers, including small, medium and large businesses, insurance companies, associations, professionals and other groups. | |||||||||||
Sale of Continental Assurance Company (CAC) | |||||||||||
On August 1, 2014, the Company completed the sale of the common stock of CAC. The business sold, which was previously reported within the Life & Group Non-Core segment, is reported as discontinued operations. The Company elected not to present the assets and liabilities as held for sale on the comparative Consolidated Balance Sheet and included CAC cash flow activity in the comparative Consolidated Statements of Cash Flow. Further information is provided in Note Q to the Consolidated Financial Statements. | |||||||||||
In connection with the sale of CAC, the Company entered into a 100% coinsurance agreement on a separate small block of annuity business outside of CAC. The coinsurance agreement required the transfer of assets with a book value equal to the ceded reserves on the inception date of the contract. Because a substantial portion of the assets supporting these liabilities are held in trust for the benefit of the original cedant, those assets were transferred on a funds withheld basis. Under this approach the Company maintains legal ownership of the assets, but the investment income and realized gains and losses on those assets inure to the reinsurer. As a result, the $34 million difference between market value and book value of the funds withheld assets at the coinsurance contract's inception was recognized as a loss in Other operating expenses. The funds withheld aspect of the agreement is considered an embedded derivative. The embedded derivative is separately accounted for at fair value and reported with the host contract in Other liabilities on the Company's Consolidated Balance Sheet. The Company recognizes Other operating expense equal to the Net investment income generated by these trust assets. | |||||||||||
Hardy Underwriting Bermuda Limited and its Subsidiaries (Hardy) | |||||||||||
On July 2, 2012, the Company completed the acquisition of all outstanding shares of Hardy, a specialized Lloyd's of London (Lloyd's) underwriter. Through Syndicate 382, Hardy underwrites primarily short-tail exposures in marine and aviation, non-marine property, specialty lines and property treaty reinsurance. The results of Hardy from the date of acquisition are included in the results of the Company's International segment. | |||||||||||
The purchase price for Hardy was $231 million. Acquisition related expenses of $4 million were incurred during the year ended December 31, 2012, including investment advisory, legal and other expenses, and were recorded in the Corporate & Other Non-Core segment. | |||||||||||
Insurance Operations | |||||||||||
Premiums: Insurance premiums on property and casualty insurance contracts are recognized in proportion to the underlying risk insured which principally are earned ratably over the duration of the policies. Premiums on long term care contracts are earned ratably over the policy year in which they are due. The reserve for unearned premiums represents the portion of premiums written relating to the unexpired terms of coverage. | |||||||||||
Insurance receivables include balances due currently or in the future, including amounts due from insureds related to losses under high deductible policies, and are presented at unpaid balances, net of an allowance for uncollectible receivables. Amounts are considered past due based on policy payment terms. That allowance is determined based on periodic evaluations of aged receivables, management's experience and current economic conditions. Insurance receivables and any related allowance are written off after collection efforts are exhausted or a negotiated settlement is reached. | |||||||||||
Property and casualty contracts that are retrospectively rated contain provisions that result in an adjustment to the initial policy premium depending on the contract provisions and loss experience of the insured during the experience period. For such contracts, the Company estimates the amount of ultimate premiums that the Company may earn upon completion of the experience period and recognizes either an asset or a liability for the difference between the initial policy premium and the estimated ultimate premium. The Company adjusts such estimated ultimate premium amounts during the course of the experience period based on actual results to date. The resulting adjustment is recorded as either a reduction of or an increase to the earned premiums for the period. | |||||||||||
Claim and claim adjustment expense reserves: Claim and claim adjustment expense reserves, except reserves for structured settlements not associated with asbestos and environmental pollution (A&EP), workers' compensation lifetime claims and accident and health claims, are not discounted and are based on 1) case basis estimates for losses reported on direct business, adjusted in the aggregate for ultimate loss expectations; 2) estimates of incurred but not reported (IBNR) losses; 3) estimates of losses on assumed reinsurance; 4) estimates of future expenses to be incurred in the settlement of claims; 5) estimates of salvage and subrogation recoveries and 6) estimates of amounts due from insureds related to losses under high deductible policies. Management considers current conditions and trends as well as past Company and industry experience in establishing these estimates. The effects of inflation, which can be significant, are implicitly considered in the reserving process and are part of the recorded reserve balance. Ceded claim and claim adjustment expense reserves are reported as a component of Reinsurance receivables on the Consolidated Balance Sheets. | |||||||||||
Claim and claim adjustment expense reserves are presented net of anticipated amounts due from insureds related to losses under deductible policies of $1.4 billion and $1.3 billion as of December 31, 2014 and 2013. A significant portion of these amounts are supported by collateral. The Company has an allowance for uncollectible deductible amounts, which is presented as a component of the allowance for doubtful accounts included in Insurance receivables on the Consolidated Balance Sheets. | |||||||||||
Structured settlements have been negotiated for certain property and casualty insurance claims. Structured settlements are agreements to provide fixed periodic payments to claimants. The Company's obligations for structured settlements not funded by annuities are included in claim and claim adjustment expense reserves and carried at present values determined using interest rates ranging from 5.5% to 8.0% at December 31, 2014 and 7.1% to 9.7% at December 31, 2013. At December 31, 2014 and 2013, the discounted reserves for unfunded structured settlements were $582 million and $580 million, net of discount of $924 million and $969 million. | |||||||||||
Workers' compensation lifetime claim reserves are calculated using mortality assumptions determined through statutory regulation and economic factors. Accident and health claim reserves are calculated using mortality and morbidity assumptions based on Company and industry experience. Workers' compensation lifetime claim reserves and accident and health claim reserves are discounted at interest rates ranging from 3.5% to 6.8% at December 31, 2014 and 3.0% to 6.8% at December 31, 2013. At December 31, 2014 and 2013, such discounted reserves totaled $2.5 billion and $2.4 billion, net of discount of $654 million and $617 million. | |||||||||||
Future policy benefits reserves: Reserves for long term care policies and payout annuity contracts are computed using the net level premium method, which incorporates actuarial assumptions as to morbidity, persistency, discount rate and expenses. Expense assumptions primarily relate to claim adjudication. Actuarial assumptions generally vary by plan, age at issue and policy duration. The initial assumptions are determined at issuance, include a margin for adverse deviation and are locked in throughout the life of the contract unless a premium deficiency develops. If a premium deficiency emerges, the assumptions are unlocked and deferred acquisition costs, if any, and the future policy benefit reserves are adjusted. Interest rates for long term care products range from 4.5% to 7.9% at December 31, 2014 and 2013. Interest rates for payout annuity contracts ranged from 5.0% to 8.7% at December 31, 2013. | |||||||||||
Policyholders' funds reserves: Policyholders' funds reserves on the Consolidated Balance Sheet as of December 31, 2013 primarily included reserves for investment contracts without life contingencies. For these contracts, policyholder liabilities are generally equal to the accumulated policy account values, which consist of an accumulation of deposit payments plus credited interest, less withdrawals and amounts assessed through the end of the period. | |||||||||||
Guaranty fund and other insurance-related assessments: Liabilities for guaranty fund and other insurance-related assessments are accrued when an assessment is probable, when it can be reasonably estimated and when the event obligating the entity to pay an imposed or probable assessment has occurred. Liabilities for guaranty funds and other insurance-related assessments are not discounted and are included as part of Other liabilities on the Consolidated Balance Sheets. As of December 31, 2014 and 2013, the liability balances were $131 million and $143 million. | |||||||||||
Reinsurance: Reinsurance accounting allows for contractual cash flows to be reflected as premiums and losses. To qualify for reinsurance accounting, reinsurance agreements must include risk transfer. To meet risk transfer requirements, a reinsurance contract must include both insurance risk, consisting of underwriting and timing risk, and a reasonable possibility of a significant loss for the assuming entity. | |||||||||||
Reinsurance receivables related to paid losses are presented at unpaid balances. Reinsurance receivables related to unpaid losses are estimated in a manner consistent with claim and claim adjustment expense reserves or future policy benefits reserves. Reinsurance receivables are reported net of an allowance for uncollectible amounts on the Consolidated Balance Sheets. The cost of reinsurance is primarily accounted for over the life of the underlying reinsured policies using assumptions consistent with those used to account for the underlying policies or over the reinsurance contract period. The ceding of insurance does not discharge the primary liability of the Company. | |||||||||||
The Company has established an allowance for uncollectible reinsurance receivables which relates to both amounts already billed on ceded paid losses as well as ceded reserves that will be billed when losses are paid in the future. The allowance for uncollectible reinsurance receivables is estimated on the basis of periodic evaluations of balances due from reinsurers, reinsurer solvency, management's experience and current economic conditions. Reinsurer financial strength ratings are updated and reviewed on an annual basis or sooner if the Company becomes aware of significant changes related to a reinsurer. Because billed receivables generally approximate 5% or less of total reinsurance receivables, the age of the reinsurance receivables related to paid losses is not a significant input into the allowance analysis. Changes in the allowance for uncollectible reinsurance receivables are presented as a component of Insurance claims and policyholders' benefits on the Consolidated Statements of Operations. | |||||||||||
Amounts are considered past due based on the reinsurance contract terms. Reinsurance receivables related to paid losses and any related allowance are written off after collection efforts have been exhausted or a negotiated settlement is reached with the reinsurer. Reinsurance receivables related to paid losses from insolvent insurers are written off when the settlement due from the estate can be reasonably estimated. At the time reinsurance receivables related to paid losses are written off, any required adjustment to reinsurance receivables related to unpaid losses is recorded as a component of Insurance claims and policyholders' benefits on the Consolidated Statements of Operations. | |||||||||||
Reinsurance contracts that do not effectively transfer the economic risk of loss on the underlying policies are recorded using the deposit method of accounting, which requires that premium paid or received by the ceding company or assuming company be accounted for as a deposit asset or liability. The Company had $3 million recorded as deposit assets at December 31, 2014 and 2013, and $9 million and $130 million recorded as deposit liabilities at December 31, 2014 and 2013. Income on reinsurance contracts accounted for under the deposit method is recognized using an effective yield based on the anticipated timing of payments and the remaining life of the contract. When the anticipated timing of payments changes, the effective yield is recalculated to reflect actual payments to date and the estimated timing of future payments. The deposit asset or liability is adjusted to the amount that would have existed had the new effective yield been applied since the inception of the contract. | |||||||||||
A loss portfolio transfer is a retroactive reinsurance contract. If the cumulative claim and allocated claim adjustment expenses ceded under a loss portfolio transfer exceed the consideration paid, the resulting gain from such excess is deferred and amortized into earnings in future periods in proportion to actual recoveries under the loss portfolio transfer. In the period in which an excess arises, a portion of the deferred gain is cumulatively recognized in earnings as if the revised estimate was available at the inception date of the loss portfolio transfer. | |||||||||||
Deferred acquisition costs: Acquisition costs include commissions, premium taxes and certain underwriting and policy issuance costs which are incremental direct costs of successful contract acquisitions. Deferred acquisition costs related to long term care contracts issued prior to January 1, 2004 include costs which vary with and are primarily related to the acquisition of business. | |||||||||||
Acquisition costs related to property and casualty business are deferred and amortized ratably over the period the related premiums are earned. | |||||||||||
Deferred acquisition costs related to long term care contracts are amortized over the premium-paying period of the related policies using assumptions consistent with those used for computing future policy benefit reserves for such contracts. Assumptions are made at the date of policy issuance or acquisition and are consistently applied during the lives of the contracts. Deviations from estimated experience are included in results of operations when they occur. For these contracts, the amortization period is typically the estimated life of the policy. At December 31, 2014 and 2013, Deferred acquisition costs were presented net of Shadow Adjustments, as defined later in this note, of $314 million and $342 million. | |||||||||||
The Company evaluates deferred acquisition costs for recoverability. Anticipated investment income is considered in the determination of the recoverability of deferred acquisition costs. Adjustments, if necessary, are recorded in current period results of operations. | |||||||||||
Deferred acquisition costs are presented net of ceding commissions and other ceded acquisition costs. Unamortized deferred acquisition costs relating to contracts that have been substantially changed by a modification in benefits, features, rights or coverages that were not anticipated in the original contract are not deferred and are included as a charge to operations in the period during which the contract modification occurred. | |||||||||||
Investments in life settlement contracts and related revenue recognition: Prior to 2002, the Company purchased investments in life settlement contracts. A life settlement contract is a contract between the owner of a life insurance policy (the policy owner) and a third-party investor (investor). Under a life settlement contract, the Company obtains the ownership and beneficiary rights of an underlying life insurance policy. | |||||||||||
The Company accounts for its investments in life settlement contracts using the fair value method. Under the fair value method, each life settlement contract is carried at its fair value at the end of each reporting period. The change in fair value, life insurance proceeds received and periodic maintenance costs, such as premiums, necessary to keep the underlying policy in force, are recorded in Other revenues on the Consolidated Statements of Operations. | |||||||||||
The fair value of the Company's investments in life settlement contracts were $82 million and $88 million at December 31, 2014 and 2013, and are included in Other assets on the Consolidated Balance Sheets. The cash receipts and payments related to life settlement contracts are included in Cash flows from operating activities on the Consolidated Statements of Cash Flows. | |||||||||||
The following table details the values for life settlement contracts. The determination of fair value is discussed in Note D to the Consolidated Financial Statements. | |||||||||||
December 31, 2014 | Number of Life Settlement Contracts | Fair Value of Life Settlement Contracts | Face Amount of Life Insurance Policies | ||||||||
(In millions) | (In millions) | ||||||||||
Estimated maturity during: | |||||||||||
2015 | 60 | $ | 11 | $ | 37 | ||||||
2016 | 60 | 10 | 33 | ||||||||
2017 | 50 | 9 | 30 | ||||||||
2018 | 50 | 7 | 26 | ||||||||
2019 | 50 | 6 | 26 | ||||||||
Thereafter | 318 | 39 | 187 | ||||||||
Total | 588 | $ | 82 | $ | 339 | ||||||
The Company uses an actuarial model to estimate the aggregate face amount of life insurance that is expected to mature in each future year and the corresponding fair value. This model projects the likelihood of the insured's death for each inforce policy based upon the Company's estimated mortality rates, which may vary due to the relatively small size of the portfolio of life settlement contracts. The number of life settlement contracts presented in the table above is based upon the average face amount of inforce policies estimated to mature in each future year. | |||||||||||
The increase (decrease) in fair value recognized for the years ended December 31, 2014, 2013 and 2012 on contracts still held at each respective period-end was $8 million, $(2) million and $11 million. The gains recognized during the years ended December 31, 2014, 2013 and 2012 on contracts that settled were $25 million, $15 million and $42 million. | |||||||||||
Separate Account Business: Separate account assets and liabilities on the Consolidated Balance Sheet as of December 31, 2013 represented contract holder funds related to investment and annuity products for which the policyholder assumes substantially all the risk and reward. The assets were segregated into accounts with specific underlying investment objectives and are legally segregated from the Company. All assets of the separate account business were carried at fair value with an equal amount recorded for separate account liabilities. | |||||||||||
Investments | |||||||||||
The Company classifies its fixed maturity securities and its equity securities as either available-for-sale or trading, and as such, they are carried at fair value. Changes in fair value of trading securities are reported within Net investment income on the Consolidated Statements of Operations. Changes in fair value related to available-for-sale securities are reported as a component of Other comprehensive income. The cost of fixed maturity securities classified as available-for-sale is adjusted for amortization of premiums and accretion of discounts to maturity, which are included in Net investment income on the Consolidated Statements of Operations. Losses may be recognized within Net realized investment gains (losses) on the Consolidated Statements of Operations when a decline in value is determined by the Company to be other-than-temporary. | |||||||||||
To the extent that unrealized gains on fixed income securities supporting long term care products and payout annuity contracts would result in a premium deficiency if those gains were realized, a related decrease in Deferred acquisition costs and/or increase in Insurance reserves are recorded, net of tax, as a reduction of net unrealized gains through Other comprehensive income (Shadow Adjustments). Shadow Adjustments, net of tax, increased $756 million and decreased $979 million for the years ended December 31, 2014 and 2013. At December 31, 2014 and 2013, net unrealized gains on investments included in Accumulated other comprehensive income (AOCI) were correspondingly reduced by $1,288 million and $532 million. | |||||||||||
For asset-backed securities included in fixed maturity securities, the Company recognizes income using an effective yield based on anticipated prepayments and the estimated economic life of the securities. When estimates of prepayments change, the effective yield is recalculated to reflect actual payments to date and anticipated future payments. The amortized cost of high credit quality fixed rate securities is adjusted to the amount that would have existed had the new effective yield been applied since the acquisition of the securities. Such adjustments are reflected in Net investment income on the Consolidated Statements of Operations. Interest income on lower rated and variable rate securities is determined using the prospective yield method. | |||||||||||
The Company's carrying value of investments in limited partnerships is its share of the net asset value of each partnership, as determined by the General Partner. Certain partnerships for which results are not available on a timely basis are reported on a lag, primarily three months or less. Changes in net asset values are accounted for under the equity method and recorded within Net investment income on the Consolidated Statements of Operations. | |||||||||||
Mortgage loans are commercial in nature, are carried at unpaid principal balance, net of unamortized fees and any valuation allowance, and are recorded once funded. Mortgage loans are considered to be impaired loans when it is probable that contractual principal and interest payments will not be collected. A valuation allowance is established for impaired loans to the extent that the present value of expected future cash flows discounted at the loan's original effective interest rate is less than the carrying value of the loan. Interest income from mortgage loans is recognized on an accrual basis using the effective yield method. Accrual of income is generally suspended for mortgage loans that are impaired and collection of principal and interest payments is unlikely. Mortgage loans are considered past due when full principal or interest payments have not been received according to contractual terms. | |||||||||||
Other invested assets are carried at fair value and include overseas deposits and certain derivative securities. Overseas deposits are primarily short-term government securities, agency securities and corporate bonds held in trusts that are managed by Lloyd's. These funds are required of Lloyd's syndicates to protect policyholders in overseas markets and may be denominated in local currency. | |||||||||||
Short term investments are carried at fair value, with the exception of cash accounts earning interest, which are carried at cost and approximate fair value. Changes in fair value are reported as a component of Other comprehensive income. | |||||||||||
Purchases and sales of all securities are recorded on the trade date, except for private placement debt securities, including bank loan participations, which are recorded once funded. Realized investment gains and losses are determined on the basis of the cost or amortized cost of the specific securities sold. | |||||||||||
In the normal course of investing activities, the Company enters into relationships with variable interest entities (VIEs), primarily as a passive investor in certain limited partnerships and asset-backed securities issued by third-party VIEs. The Company is not the primary beneficiary of these VIEs, and therefore does not consolidate them. The Company determines whether it is the primary beneficiary of a VIE based on a qualitative assessment of the entity’s purpose, the nature of its operations, its capital structure, its contractual terms and the Company’s relative exposure to the related risks of the VIE. 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. | |||||||||||
A security is impaired if the fair value of the security is less than its cost adjusted for accretion, amortization and previously recorded other-than-temporary impairment (OTTI) losses, otherwise defined as an unrealized loss. When a security is impaired, the impairment is evaluated to determine whether it is temporary or other-than-temporary. | |||||||||||
Significant judgment is required in the determination of whether an OTTI loss has occurred for a security. The Company follows a consistent and systematic process for determining and recording an OTTI loss. The Company has established a committee responsible for the OTTI process. This committee, referred to as the Impairment Committee, is made up of three officers appointed by the Company’s Chief Financial Officer. The Impairment Committee is responsible for evaluating all securities in an unrealized loss position on at least a quarterly basis. | |||||||||||
The Impairment Committee’s assessment of whether an OTTI loss has occurred incorporates both quantitative and qualitative information. Fixed maturity securities that the Company intends to sell, or it more likely than not will be required to sell before recovery of amortized cost, are considered to be other-than-temporarily impaired and the entire difference between the amortized cost basis and fair value of the security is recognized as an OTTI loss in earnings. The remaining fixed maturity securities in an unrealized loss position are evaluated to determine if a credit loss exists. The factors considered by the Impairment Committee include (a) the financial condition and near term prospects of the issuer, (b) whether the debtor is current on interest and principal payments, (c) credit ratings of the securities and (d) general market conditions and industry or sector specific outlook. The Company also considers results and analysis of cash flow modeling for asset-backed securities, and when appropriate, other fixed maturity securities. The focus of the analysis for asset-backed securities is on assessing the sufficiency and quality of underlying collateral and timing of cash flows based on scenario tests. If the present value of the modeled expected cash flows equals or exceeds the amortized cost of a security, no credit loss is judged to exist and the asset-backed security is deemed to be temporarily impaired. If the present value of the expected cash flows is less than amortized cost, the security is judged to be other-than-temporarily impaired for credit reasons and that shortfall, referred to as the credit component, is recognized as an OTTI loss in earnings. The difference between the adjusted amortized cost basis and fair value, referred to as the non-credit component, is recognized as OTTI in Other comprehensive income. In subsequent reporting periods, a change in intent to sell or further credit impairment on a security whose fair value has not deteriorated will cause the non-credit component originally recorded as OTTI in Other comprehensive income to be recognized as an OTTI loss in earnings. | |||||||||||
The Company performs the discounted cash flow analysis using stressed scenarios to determine future expectations regarding recoverability. Significant assumptions enter into these cash flow projections including delinquency rates, probable risk of default, loss severity upon a default, over collateralization and interest coverage triggers and credit support from lower level tranches. | |||||||||||
The Company applies the same impairment model as described above for the majority of non-redeemable preferred stock securities on the basis that these securities possess characteristics similar to debt securities and that the issuers maintain their ability to pay dividends. For all other equity securities, in determining whether the security is other-than-temporarily impaired, the Impairment Committee considers a number of factors including, but not limited to: (a) the length of time and the extent to which the fair value has been less than amortized cost, (b) the financial condition and near term prospects of the issuer, (c) the intent and ability of the Company to retain its investment for a period of time sufficient to allow for an anticipated recovery in value and (d) general market conditions and industry or sector specific outlook. | |||||||||||
Income Taxes | |||||||||||
The Company and its eligible subsidiaries (CNA Tax Group) are included in the consolidated federal income tax return of Loews and its eligible subsidiaries. The Company accounts for income taxes under the asset and liability method. Under the asset and liability method, deferred income taxes are recognized for temporary differences between the financial statement and tax return bases of assets and liabilities, based on enacted tax rates and other provisions of the tax law. The effect of a change in tax laws or rates on deferred tax assets and liabilities is recognized in income in the period in which such change is enacted. Future tax benefits are recognized to the extent that realization of such benefits is more likely than not, and a valuation allowance is established for any portion of a deferred tax asset that management believes will not be realized. | |||||||||||
Pension and Postretirement Benefits | |||||||||||
The Company recognizes the overfunded or underfunded status of its defined benefit plans in Other assets or Other liabilities on the Consolidated Balance Sheets. Changes in funded status related to prior service costs and credits and actuarial gains and losses are recognized in the year in which the changes occur through Other comprehensive income. Annual service cost, interest cost, expected return on plan assets, amortization of prior service costs and credits and amortization of actuarial gains and losses are recognized in the Consolidated Statements of Operations. The vested benefit obligation for the CNA Retirement Plan is determined based on the employees’ expected date of separation or retirement. | |||||||||||
Stock-Based Compensation | |||||||||||
The Company records compensation expense using the fair value method for all awards it grants, modifies or cancels primarily on a straight-line basis over the requisite service period, generally three to four years. | |||||||||||
Foreign Currency | |||||||||||
Foreign currency translation gains and losses are reflected in Stockholders' equity as a component of AOCI. The Company's foreign subsidiaries' balance sheet accounts are translated at the exchange rates in effect at each reporting date and income statement accounts are either translated at the exchange rate on the date of the transaction or at the average exchange rates. Foreign currency transaction gains (losses) of $(25) million, $2 million and $12 million were included in determining net income (loss) for the years ended December 31, 2014, 2013 and 2012. | |||||||||||
Property and Equipment | |||||||||||
Property and equipment are carried at cost less accumulated depreciation. Depreciation is based on the estimated useful lives of the various classes of property and equipment and is determined principally on the straight-line method. Furniture and fixtures are depreciated over seven years. Office equipment is depreciated over five years. The estimated lives for data processing equipment and software range from three to five years. Leasehold improvements are depreciated over the corresponding lease terms not to exceed the underlying asset life. The Company's owned buildings, and related capital improvements, are depreciated over periods not to exceed fifty years. | |||||||||||
Goodwill | |||||||||||
Goodwill represents the excess of purchase price over the fair value of the net assets of acquired entities and businesses. Goodwill in the International segment may change from period to period as a result of foreign currency translation. | |||||||||||
Goodwill is tested for impairment annually or when certain triggering events require such tests. As a result of reviews completed for the year ended December 31, 2014, the Company determined that the estimated fair value of the reporting units were in excess of their carrying value including Goodwill. Changes in future periods in assumptions about the level of economic capital, business growth, earnings projections or the weighted average cost of capital could result in a goodwill impairment. | |||||||||||
Other Intangible Assets | |||||||||||
Other intangible assets are reported within Other assets. Finite-lived intangible assets are amortized over their estimated useful lives. Indefinite-lived other intangible assets are tested for impairment annually or when certain triggering events require such tests. | |||||||||||
Earnings (Loss) Per Share Data | |||||||||||
Earnings (loss) per share is based on weighted average number of outstanding common shares. Basic earnings (loss) per share excludes the impact of dilutive securities and is computed by dividing Net income (loss) by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. | |||||||||||
For the years ended December 31, 2014, 2013 and 2012, approximately 675 thousand, 552 thousand and 417 thousand potential shares attributable to exercises under stock-based employee compensation plans were included in the calculation of diluted earnings per share. For those same periods, approximately 170 thousand, 111 thousand and 730 thousand potential shares attributable to exercises under stock-based employee compensation plans were not included in the calculation of diluted earnings per share because the effect would have been antidilutive. | |||||||||||
Supplementary Cash Flow Information | |||||||||||
Cash payments made for interest were $179 million, $164 million and $170 million for the years ended December 31, 2014, 2013 and 2012. Cash payments made for income taxes were $313 million and $129 million for the years ended December 31, 2014 and 2013. Cash refunds received for income taxes were $29 million for the year ended December 31, 2012. |
Investments
Investments | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Investments [Abstract] | ||||||||||||||||||||||||
Investments | Note B. Investments | |||||||||||||||||||||||
The significant components of net investment income are presented in the following table. | ||||||||||||||||||||||||
Net Investment Income | ||||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Fixed maturity securities | $ | 1,803 | $ | 1,827 | $ | 1,846 | ||||||||||||||||||
Short term investments | 3 | 3 | 5 | |||||||||||||||||||||
Limited partnership investments | 263 | 451 | 251 | |||||||||||||||||||||
Equity securities | 12 | 12 | 12 | |||||||||||||||||||||
Mortgage loans | 31 | 23 | 17 | |||||||||||||||||||||
Trading portfolio | 10 | 17 | 24 | |||||||||||||||||||||
Other | 3 | 2 | 7 | |||||||||||||||||||||
Gross investment income | 2,125 | 2,335 | 2,162 | |||||||||||||||||||||
Investment expense | (58 | ) | (53 | ) | (52 | ) | ||||||||||||||||||
Net investment income | $ | 2,067 | $ | 2,282 | $ | 2,110 | ||||||||||||||||||
As of December 31, 2014 and 2013, the Company held no non-income producing fixed maturity securities. As of December 31, 2014 and 2013, no investments in a single issuer exceeded 10% of stockholders' equity, other than investments in securities issued by the U.S. Treasury and obligations of government-sponsored enterprises. | ||||||||||||||||||||||||
Net realized investment gains (losses) are presented in the following table. | ||||||||||||||||||||||||
Net Realized Investment Gains (Losses) | ||||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Net realized investment gains (losses): | ||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||
Gross realized gains | $ | 170 | $ | 185 | $ | 222 | ||||||||||||||||||
Gross realized losses | (129 | ) | (144 | ) | (145 | ) | ||||||||||||||||||
Net realized investment gains (losses) on fixed maturity securities | 41 | 41 | 77 | |||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
Gross realized gains | 8 | 13 | 19 | |||||||||||||||||||||
Gross realized losses | (7 | ) | (35 | ) | (42 | ) | ||||||||||||||||||
Net realized investment gains (losses) on equity securities | 1 | (22 | ) | (23 | ) | |||||||||||||||||||
Derivatives | (1 | ) | (9 | ) | (2 | ) | ||||||||||||||||||
Short term investments and other | 16 | 10 | 2 | |||||||||||||||||||||
Net realized investment gains (losses) | $ | 57 | $ | 20 | $ | 54 | ||||||||||||||||||
Net change in unrealized gains on investments is presented in the following table. | ||||||||||||||||||||||||
Net Change in Unrealized Gains | ||||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Net change in unrealized gains on investments: | ||||||||||||||||||||||||
Fixed maturity securities | $ | 1,511 | $ | (2,541 | ) | $ | 1,871 | |||||||||||||||||
Equity securities | 6 | (15 | ) | 5 | ||||||||||||||||||||
Other | — | — | (1 | ) | ||||||||||||||||||||
Total net change in unrealized gains on investments | $ | 1,517 | $ | (2,556 | ) | $ | 1,875 | |||||||||||||||||
The components of OTTI losses recognized in earnings by asset type are summarized in the following table. | ||||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Fixed maturity securities available-for-sale: | ||||||||||||||||||||||||
Corporate and other bonds | $ | 18 | $ | 20 | $ | 25 | ||||||||||||||||||
States, municipalities and political subdivisions | 46 | — | 34 | |||||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||
Residential mortgage-backed | 5 | 19 | 48 | |||||||||||||||||||||
Other asset-backed | 1 | 2 | — | |||||||||||||||||||||
Total asset-backed | 6 | 21 | 48 | |||||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | — | — | 1 | |||||||||||||||||||||
Total fixed maturity securities available-for-sale | 70 | 41 | 108 | |||||||||||||||||||||
Equity securities available-for-sale: | ||||||||||||||||||||||||
Common stock | 7 | 8 | 6 | |||||||||||||||||||||
Preferred stock | — | 26 | 36 | |||||||||||||||||||||
Total equity securities available-for-sale | 7 | 34 | 42 | |||||||||||||||||||||
Short term investments | — | 1 | — | |||||||||||||||||||||
OTTI losses recognized in earnings | $ | 77 | $ | 76 | $ | 150 | ||||||||||||||||||
The following tables provide a summary of fixed maturity and equity securities. | ||||||||||||||||||||||||
Summary of Fixed Maturity and Equity Securities | ||||||||||||||||||||||||
December 31, 2014 | Cost or | Gross | Gross | Estimated | Unrealized | |||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | OTTI | ||||||||||||||||||||
(In millions) | Cost | Gains | Losses | Value | Losses (Gains) | |||||||||||||||||||
Fixed maturity securities available-for-sale: | ||||||||||||||||||||||||
Corporate and other bonds | $ | 17,210 | $ | 1,721 | $ | 61 | $ | 18,870 | $ | — | ||||||||||||||
States, municipalities and political subdivisions | 11,285 | 1,463 | 8 | 12,740 | — | |||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||
Residential mortgage-backed | 5,028 | 218 | 13 | 5,233 | (53 | ) | ||||||||||||||||||
Commercial mortgage-backed | 2,056 | 93 | 5 | 2,144 | (2 | ) | ||||||||||||||||||
Other asset-backed | 1,234 | 11 | 10 | 1,235 | — | |||||||||||||||||||
Total asset-backed | 8,318 | 322 | 28 | 8,612 | (55 | ) | ||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 26 | 5 | — | 31 | — | |||||||||||||||||||
Foreign government | 438 | 16 | — | 454 | — | |||||||||||||||||||
Redeemable preferred stock | 39 | 3 | — | 42 | — | |||||||||||||||||||
Total fixed maturity securities available-for-sale | 37,316 | 3,530 | 97 | 40,749 | $ | (55 | ) | |||||||||||||||||
Total fixed maturity securities trading | 19 | 19 | ||||||||||||||||||||||
Equity securities available-for-sale: | ||||||||||||||||||||||||
Common stock | 38 | 9 | — | 47 | ||||||||||||||||||||
Preferred stock | 172 | 5 | 2 | 175 | ||||||||||||||||||||
Total equity securities available-for-sale | 210 | 14 | 2 | 222 | ||||||||||||||||||||
Total | $ | 37,545 | $ | 3,544 | $ | 99 | $ | 40,990 | ||||||||||||||||
December 31, 2013 | Cost or | Gross | Gross | Estimated | Unrealized | |||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | OTTI | ||||||||||||||||||||
(In millions) | Cost | Gains | Losses | Value | Losses (Gains) | |||||||||||||||||||
Fixed maturity securities available-for-sale: | ||||||||||||||||||||||||
Corporate and other bonds | $ | 19,352 | $ | 1,645 | $ | 135 | $ | 20,862 | $ | — | ||||||||||||||
States, municipalities and political subdivisions | 11,281 | 548 | 272 | 11,557 | — | |||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||
Residential mortgage-backed | 4,940 | 123 | 92 | 4,971 | (37 | ) | ||||||||||||||||||
Commercial mortgage-backed | 1,995 | 90 | 22 | 2,063 | (3 | ) | ||||||||||||||||||
Other asset-backed | 945 | 13 | 3 | 955 | — | |||||||||||||||||||
Total asset-backed | 7,880 | 226 | 117 | 7,989 | (40 | ) | ||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 139 | 6 | 1 | 144 | — | |||||||||||||||||||
Foreign government | 531 | 15 | 3 | 543 | — | |||||||||||||||||||
Redeemable preferred stock | 92 | 10 | — | 102 | — | |||||||||||||||||||
Total fixed maturity securities available-for-sale | 39,275 | 2,450 | 528 | 41,197 | $ | (40 | ) | |||||||||||||||||
Total fixed maturity securities trading | 36 | 36 | ||||||||||||||||||||||
Equity securities available-for-sale: | ||||||||||||||||||||||||
Common stock | 36 | 9 | — | 45 | ||||||||||||||||||||
Preferred stock | 143 | 1 | 4 | 140 | ||||||||||||||||||||
Total equity securities available-for-sale | 179 | 10 | 4 | 185 | ||||||||||||||||||||
Total | $ | 39,490 | $ | 2,460 | $ | 532 | $ | 41,418 | ||||||||||||||||
The following tables summarize the estimated fair value and gross unrealized losses of available-for-sale fixed maturity and equity securities in a gross unrealized loss position by the length of time in which the securities have continuously been in that position. | ||||||||||||||||||||||||
Securities in a Gross Unrealized Loss Position | ||||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||
December 31, 2014 | Estimated | Gross | Estimated | Gross | Estimated | Gross | ||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | |||||||||||||||||||
(In millions) | Losses | Losses | Losses | |||||||||||||||||||||
Fixed maturity securities available-for-sale: | ||||||||||||||||||||||||
Corporate and other bonds | $ | 1,330 | $ | 46 | $ | 277 | $ | 15 | $ | 1,607 | $ | 61 | ||||||||||||
States, municipalities and political subdivisions | 335 | 5 | 127 | 3 | 462 | 8 | ||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||
Residential mortgage-backed | 293 | 5 | 189 | 8 | 482 | 13 | ||||||||||||||||||
Commercial mortgage-backed | 264 | 2 | 99 | 3 | 363 | 5 | ||||||||||||||||||
Other asset-backed | 607 | 10 | 7 | — | 614 | 10 | ||||||||||||||||||
Total asset-backed | 1,164 | 17 | 295 | 11 | 1,459 | 28 | ||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 3 | — | 4 | — | 7 | — | ||||||||||||||||||
Foreign government | 3 | — | 3 | — | 6 | — | ||||||||||||||||||
Redeemable preferred stock | 3 | — | — | — | 3 | — | ||||||||||||||||||
Total fixed maturity securities available-for-sale | 2,838 | 68 | 706 | 29 | 3,544 | 97 | ||||||||||||||||||
Equity securities available-for-sale: | ||||||||||||||||||||||||
Preferred stock | 17 | 2 | 1 | — | 18 | 2 | ||||||||||||||||||
Total | $ | 2,855 | $ | 70 | $ | 707 | $ | 29 | $ | 3,562 | $ | 99 | ||||||||||||
Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||
December 31, 2013 | Estimated | Gross | Estimated | Gross | Estimated | Gross | ||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | |||||||||||||||||||
(In millions) | Losses | Losses | Losses | |||||||||||||||||||||
Fixed maturity securities available-for-sale: | ||||||||||||||||||||||||
Corporate and other bonds | $ | 3,592 | $ | 129 | $ | 72 | $ | 6 | $ | 3,664 | $ | 135 | ||||||||||||
States, municipalities and political subdivisions | 3,251 | 197 | 129 | 75 | 3,380 | 272 | ||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||
Residential mortgage-backed | 1,293 | 29 | 343 | 63 | 1,636 | 92 | ||||||||||||||||||
Commercial mortgage-backed | 640 | 22 | — | — | 640 | 22 | ||||||||||||||||||
Other asset-backed | 269 | 3 | — | — | 269 | 3 | ||||||||||||||||||
Total asset-backed | 2,202 | 54 | 343 | 63 | 2,545 | 117 | ||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 13 | 1 | — | — | 13 | 1 | ||||||||||||||||||
Foreign government | 111 | 3 | — | — | 111 | 3 | ||||||||||||||||||
Total fixed maturity securities available-for-sale | 9,169 | 384 | 544 | 144 | 9,713 | 528 | ||||||||||||||||||
Equity securities available-for-sale: | ||||||||||||||||||||||||
Preferred stock | 87 | 4 | — | — | 87 | 4 | ||||||||||||||||||
Total | $ | 9,256 | $ | 388 | $ | 544 | $ | 144 | $ | 9,800 | $ | 532 | ||||||||||||
Based on current facts and circumstances, the Company believes the unrealized losses presented in the December 31, 2014 Securities in a Gross Unrealized Loss Position table above, are not indicative of the ultimate collectibility of the current amortized cost of the securities, but rather are primarily attributable to changes in interest rates and credit spreads, market illiquidity and other factors. The Company has no current intent to sell securities with unrealized losses, nor is it more likely than not that it will be required to sell prior to recovery of amortized cost; accordingly, the Company has determined that there are no additional OTTI losses to be recorded at December 31, 2014. | ||||||||||||||||||||||||
The following table summarizes the activity for the years ended December 31, 2014, 2013 and 2012 related to the pretax credit loss component reflected in Retained earnings on fixed maturity securities still held at December 31, 2014, 2013 and 2012 for which a portion of an OTTI loss was recognized in Other comprehensive income. | ||||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Beginning balance of credit losses on fixed maturity securities | $ | 74 | $ | 95 | $ | 92 | ||||||||||||||||||
Additional credit losses for securities for which an OTTI loss was previously recognized | — | 2 | 23 | |||||||||||||||||||||
Credit losses for securities for which an OTTI loss was not previously recognized | — | — | 2 | |||||||||||||||||||||
Reductions for securities sold during the period | (9 | ) | (23 | ) | (14 | ) | ||||||||||||||||||
Reductions for securities the Company intends to sell or more likely than not will be required to sell | (3 | ) | — | (8 | ) | |||||||||||||||||||
Ending balance of credit losses on fixed maturity securities | $ | 62 | $ | 74 | $ | 95 | ||||||||||||||||||
Contractual Maturity | ||||||||||||||||||||||||
The following table summarizes available-for-sale fixed maturity securities by contractual maturity. Actual maturities may differ from contractual maturities because certain securities may be called or prepaid with or without call or prepayment penalties. Securities not due at a single date are allocated based on weighted average life. | ||||||||||||||||||||||||
Contractual Maturity | ||||||||||||||||||||||||
31-Dec | 2014 | 2013 | ||||||||||||||||||||||
(In millions) | Cost or | Estimated | Cost or | Estimated | ||||||||||||||||||||
Amortized | Fair | Amortized | Fair | |||||||||||||||||||||
Cost | Value | Cost | Value | |||||||||||||||||||||
Due in one year or less | $ | 2,479 | $ | 2,511 | $ | 2,420 | $ | 2,455 | ||||||||||||||||
Due after one year through five years | 9,054 | 9,605 | 9,496 | 10,068 | ||||||||||||||||||||
Due after five years through ten years | 12,055 | 12,584 | 11,667 | 11,954 | ||||||||||||||||||||
Due after ten years | 13,728 | 16,049 | 15,692 | 16,720 | ||||||||||||||||||||
Total | $ | 37,316 | $ | 40,749 | $ | 39,275 | $ | 41,197 | ||||||||||||||||
Limited Partnerships | ||||||||||||||||||||||||
The carrying value of limited partnerships as of December 31, 2014 and 2013 was $2,937 million and $2,720 million, which includes undistributed earnings of $1,040 million and $969 million. Limited partnerships comprising 65% of the total carrying value are reported on a current basis through December 31, 2014 with no reporting lag, 16% are reported on a one month lag and the remainder are reported on more than a one month lag. As of December 31, 2014 and 2013, the Company had 86 and 87 active limited partnership investments. The number of limited partnerships held and the strategies employed provide diversification to the limited partnership portfolio and the overall invested asset portfolio. | ||||||||||||||||||||||||
Of the limited partnerships held, 73% and 74% at December 31, 2014 and 2013 employ hedge fund strategies that generate returns through investing in marketable securities in the public fixed income and equity markets. Limited partnerships representing 23% and 22% at December 31, 2014 and 2013 were invested in private debt and equity, and the remaining limited partnerships were primarily invested in real estate strategies. Hedge fund strategies include both long and short positions in fixed income, equity and derivative instruments. These hedge fund strategies may seek to generate gains from mispriced or undervalued securities, price differentials between securities, distressed investments, sector rotation or various arbitrage disciplines. Within hedge fund strategies, approximately 56% were equity related, 27% pursued a multi-strategy approach, 14% were focused on distressed investments and 3% were fixed income related at December 31, 2014. | ||||||||||||||||||||||||
The ten largest limited partnership positions held totaled $1,492 million and $1,471 million as of December 31, 2014 and 2013. Based on the most recent information available regarding the Company’s percentage ownership of the individual limited partnerships, the carrying value reflected on the Consolidated Balance Sheets represents approximately 4% of the aggregate partnership equity at December 31, 2014 and 2013, and the related income reflected on the Consolidated Statements of Operations represents approximately 4%, 4% and 3% of the changes in total partnership equity for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||||||||||||
While the Company generally does not invest in highly leveraged partnerships, there are risks which may result in losses due to short-selling, derivatives or other speculative investment practices. The use of leverage increases volatility generated by the underlying investment strategies. | ||||||||||||||||||||||||
The Company’s limited partnership investments contain withdrawal provisions that generally limit liquidity for a period of thirty days up to one year and in some cases do not permit withdrawals until the termination of the partnership. Typically, withdrawals require advance written notice of up to 90 days. | ||||||||||||||||||||||||
Commercial Mortgage Loans | ||||||||||||||||||||||||
Risks related to the recoverability of loan balances include declines in the estimated cash flows from underlying property leases, fair value of collateral and creditworthiness of tenants of credit tenant loan properties, where lease payments directly service the loan. The Company evaluates loans for impairment on a specific loan basis and identifies loans for evaluation of impairment based on the collection experience of each loan and other credit quality indicators such as debt service coverage ratio and the creditworthiness of the borrower or tenants of credit tenant loan properties. As of December 31, 2014 and 2013, there were no loans past due or in non-accrual status, and no valuation allowance was recorded. | ||||||||||||||||||||||||
Investment Commitments | ||||||||||||||||||||||||
As of December 31, 2014, the Company had committed approximately $327 million to future capital calls from various third-party limited partnership investments in exchange for an ownership interest in the related partnerships. | ||||||||||||||||||||||||
As of December 31, 2014, the Company had a mortgage loan commitment of $8 million representing a signed loan application received and accepted. | ||||||||||||||||||||||||
The Company invests in various privately placed debt securities, including bank loans, as part of its overall investment strategy and has committed to additional future purchases, sales and funding. As of December 31, 2014, the Company had commitments to purchase or fund additional amounts of $75 million and sell $97 million under the terms of such securities. | ||||||||||||||||||||||||
Investments on Deposit | ||||||||||||||||||||||||
Securities with carrying values of approximately $3.0 billion and $3.3 billion were deposited by the Company’s insurance subsidiaries under requirements of regulatory authorities and others as of December 31, 2014 and 2013. | ||||||||||||||||||||||||
Cash and securities with carrying values of approximately $361 million and $353 million were deposited with financial institutions as collateral for letters of credit as of December 31, 2014 and 2013. In addition, cash and securities were deposited in trusts with financial institutions to secure reinsurance and other obligations with various third parties. The carrying values of these deposits were approximately $302 million and $294 million as of December 31, 2014 and 2013. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Summary of Derivative Instruments [Abstract] | ||||||||||||
Derivative Financial Instruments | Note C. Derivative Financial Instruments | |||||||||||
The Company may use derivatives in the normal course of business, primarily in an attempt to reduce its exposure to market risk (principally interest rate risk, credit risk, equity price risk and foreign currency risk) stemming from various assets and liabilities. The Company's principal objective under such strategies is to achieve the desired reduction in economic risk, even if the position does not receive hedge accounting treatment. | ||||||||||||
The Company may enter into interest rate swaps, futures and commitments to purchase securities to manage interest rate risk. The Company may use foreign currency forward contracts to manage foreign currency risk. | ||||||||||||
In addition to the derivatives used for risk management purposes described above, the Company may also use derivatives for purposes of income enhancement. Income enhancement transactions are limited in scope and primarily involve the sale of covered options in which the Company receives a premium in exchange for selling a call or put option. | ||||||||||||
Credit exposure associated with non-performance by the counterparties to derivative instruments is generally limited to the uncollateralized fair value of the asset related to the instruments recognized on the Consolidated Balance Sheets. The Company generally requires that all over-the-counter derivative contracts be governed by an International Swaps and Derivatives Association Master Agreement, and exchanges collateral under the terms of these agreements with its derivative investment counterparties depending on the amount of the exposure and the credit rating of the counterparty. Gross estimated fair values of derivative positions are presented in Other invested assets and Other liabilities on the Consolidated Balance Sheet. The Company does not offset derivative positions against the fair value of collateral provided or positions subject to netting arrangements. There would be no significant difference in the balance included in such accounts if the estimated fair values were presented net for the periods ended December 31, 2014 and 2013. There was no cash collateral provided by the Company at December 31, 2014 or 2013. There was no cash collateral received from counterparties held at December 31, 2014 or 2013. | ||||||||||||
A summary of the aggregate contractual or notional amounts and gross estimated fair values related to derivative financial instruments reported as Other invested assets or Other liabilities on the Consolidated Balance Sheets follows. The contractual or notional amounts for derivatives are used to calculate the exchange of contractual payments under the agreements and may not be representative of the potential for gain or loss on these instruments. | ||||||||||||
Derivative Financial Instruments | ||||||||||||
December 31, 2014 | Contractual/ | Estimated Fair Value | ||||||||||
Notional | ||||||||||||
(In millions) | Amount | Asset | (Liability) | |||||||||
Without hedge designation | ||||||||||||
Currency forwards | $ | 9 | $ | — | $ | — | ||||||
Equity warrants | 5 | — | — | |||||||||
Embedded derivative on funds withheld liability | 184 | — | (3 | ) | ||||||||
Total | $ | — | $ | (3 | ) | |||||||
December 31, 2013 | Contractual/ | Estimated Fair Value | ||||||||||
Notional | ||||||||||||
(In millions) | Amount | Asset | (Liability) | |||||||||
Without hedge designation | ||||||||||||
Equity warrants | $ | 5 | $ | — | $ | — | ||||||
For further discussion of the embedded derivative on funds withheld liability, see Note A to the Consolidated Financial Statements. |
Fair_Value
Fair Value | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||
Fair Value | Note D. Fair Value | |||||||||||||||||||||||||||||||||||||||
Fair value is the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following fair value hierarchy is used in selecting inputs, with the highest priority given to Level 1, as these are the most transparent or reliable. | ||||||||||||||||||||||||||||||||||||||||
Level 1 - Quoted prices for identical instruments in active markets. | ||||||||||||||||||||||||||||||||||||||||
Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets. | ||||||||||||||||||||||||||||||||||||||||
Level 3 - Valuations derived from valuation techniques in which one or more significant inputs are not observable. | ||||||||||||||||||||||||||||||||||||||||
Prices may fall within Level 1, 2 or 3 depending upon the methodologies and inputs used to estimate fair value for each specific security. In general the Company seeks to price securities using third-party pricing services. Securities not priced by pricing services are submitted to independent brokers for valuation and, if those are not available, internally developed pricing models are used to value assets using methodologies and inputs the Company believes market participants would use to value the assets. Prices obtained from third-party pricing services or brokers are not adjusted by the Company. | ||||||||||||||||||||||||||||||||||||||||
The Company performs control procedures over information obtained from pricing services and brokers to ensure prices received represent a reasonable estimate of fair value and to confirm representations regarding whether inputs are observable or unobservable. Procedures include i) the review of pricing service or broker pricing methodologies, ii) back-testing, where past fair value estimates are compared to actual transactions executed in the market on similar dates, iii) exception reporting, where changes in price, period-over-period, are reviewed and challenged with the pricing service or broker based on exception criteria, iv) deep dives, where the Company performs an independent analysis of the inputs and assumptions used to price individual securities and v) pricing validation, where prices received are compared to prices independently estimated by the Company. | ||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value | ||||||||||||||||||||||||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis are summarized below. | ||||||||||||||||||||||||||||||||||||||||
December 31, 2014 | Total | |||||||||||||||||||||||||||||||||||||||
Assets/ (Liabilities) | ||||||||||||||||||||||||||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | at Fair Value | ||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||
Corporate and other bonds | $ | 32 | $ | 18,695 | $ | 162 | $ | 18,889 | ||||||||||||||||||||||||||||||||
States, municipalities and political subdivisions | — | 12,646 | 94 | 12,740 | ||||||||||||||||||||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed | — | 5,044 | 189 | 5,233 | ||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed | — | 2,061 | 83 | 2,144 | ||||||||||||||||||||||||||||||||||||
Other asset-backed | — | 580 | 655 | 1,235 | ||||||||||||||||||||||||||||||||||||
Total asset-backed | — | 7,685 | 927 | 8,612 | ||||||||||||||||||||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 28 | 3 | — | 31 | ||||||||||||||||||||||||||||||||||||
Foreign government | 41 | 413 | — | 454 | ||||||||||||||||||||||||||||||||||||
Redeemable preferred stock | 30 | 12 | — | 42 | ||||||||||||||||||||||||||||||||||||
Total fixed maturity securities | 131 | 39,454 | 1,183 | 40,768 | ||||||||||||||||||||||||||||||||||||
Equity securities | 145 | 61 | 16 | 222 | ||||||||||||||||||||||||||||||||||||
Other invested assets | — | 41 | — | 41 | ||||||||||||||||||||||||||||||||||||
Short term investments | 681 | 963 | — | 1,644 | ||||||||||||||||||||||||||||||||||||
Life settlement contracts, included in Other assets | — | — | 82 | 82 | ||||||||||||||||||||||||||||||||||||
Total assets | $ | 957 | $ | 40,519 | $ | 1,281 | $ | 42,757 | ||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||
Other liabilities | $ | — | $ | (3 | ) | $ | — | $ | (3 | ) | ||||||||||||||||||||||||||||||
Total liabilities | $ | — | $ | (3 | ) | $ | — | $ | (3 | ) | ||||||||||||||||||||||||||||||
December 31, 2013 | Total | |||||||||||||||||||||||||||||||||||||||
Assets/(Liabilities) | ||||||||||||||||||||||||||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | at Fair Value | ||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||
Corporate and other bonds | $ | 33 | $ | 20,661 | $ | 204 | $ | 20,898 | ||||||||||||||||||||||||||||||||
States, municipalities and political subdivisions | — | 11,486 | 71 | 11,557 | ||||||||||||||||||||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed | — | 4,640 | 331 | 4,971 | ||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed | — | 1,912 | 151 | 2,063 | ||||||||||||||||||||||||||||||||||||
Other asset-backed | — | 509 | 446 | 955 | ||||||||||||||||||||||||||||||||||||
Total asset-backed | — | 7,061 | 928 | 7,989 | ||||||||||||||||||||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 116 | 28 | — | 144 | ||||||||||||||||||||||||||||||||||||
Foreign government | 81 | 462 | — | 543 | ||||||||||||||||||||||||||||||||||||
Redeemable preferred stock | 45 | 57 | — | 102 | ||||||||||||||||||||||||||||||||||||
Total fixed maturity securities | 275 | 39,755 | 1,203 | 41,233 | ||||||||||||||||||||||||||||||||||||
Equity securities | 126 | 48 | 11 | 185 | ||||||||||||||||||||||||||||||||||||
Other invested assets | — | 54 | — | 54 | ||||||||||||||||||||||||||||||||||||
Short term investments | 769 | 563 | — | 1,332 | ||||||||||||||||||||||||||||||||||||
Life settlement contracts, included in Other assets | — | — | 88 | 88 | ||||||||||||||||||||||||||||||||||||
Separate account business | 9 | 171 | 1 | 181 | ||||||||||||||||||||||||||||||||||||
Total assets | $ | 1,179 | $ | 40,591 | $ | 1,303 | $ | 43,073 | ||||||||||||||||||||||||||||||||
The tables below present a reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2014 and 2013. | ||||||||||||||||||||||||||||||||||||||||
Level 3 | Balance at | Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss)* | Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss) | Purchases | Sales | Settlements | Transfers into | Transfers out | Balance at | Unrealized gains (losses) on Level 3 assets and liabilities held at December 31, 2014 recognized in net income (loss)* | ||||||||||||||||||||||||||||||
(In millions) | January 1, | Level 3 | of Level 3 | December 31, | ||||||||||||||||||||||||||||||||||||
2014 | 2014 | |||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||
Corporate and other bonds | $ | 204 | $ | 2 | $ | (1 | ) | $ | 33 | $ | (23 | ) | $ | (16 | ) | $ | 18 | $ | (55 | ) | $ | 162 | $ | — | ||||||||||||||||
States, municipalities and political subdivisions | 71 | 1 | 4 | 14 | (10 | ) | — | 14 | — | 94 | — | |||||||||||||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed | 331 | (21 | ) | 61 | 94 | (174 | ) | (72 | ) | 32 | (62 | ) | 189 | — | ||||||||||||||||||||||||||
Commercial mortgage-backed | 151 | 7 | (6 | ) | 28 | (60 | ) | (29 | ) | 43 | (51 | ) | 83 | — | ||||||||||||||||||||||||||
Other asset-backed | 446 | 2 | (6 | ) | 488 | (111 | ) | (117 | ) | — | (47 | ) | 655 | (1 | ) | |||||||||||||||||||||||||
Total asset-backed | 928 | (12 | ) | 49 | 610 | (345 | ) | (218 | ) | 75 | (160 | ) | 927 | (1 | ) | |||||||||||||||||||||||||
Total fixed maturity securities | 1,203 | (9 | ) | 52 | 657 | (378 | ) | (234 | ) | 107 | (215 | ) | 1,183 | (1 | ) | |||||||||||||||||||||||||
Equity securities | 11 | 3 | (6 | ) | 16 | (8 | ) | — | — | — | 16 | — | ||||||||||||||||||||||||||||
Life settlement contracts | 88 | 33 | — | — | — | (39 | ) | — | — | 82 | 8 | |||||||||||||||||||||||||||||
Separate account business | 1 | — | — | — | — | — | — | (1 | ) | — | — | |||||||||||||||||||||||||||||
Total | $ | 1,303 | $ | 27 | $ | 46 | $ | 673 | $ | (386 | ) | $ | (273 | ) | $ | 107 | $ | (216 | ) | $ | 1,281 | $ | 7 | |||||||||||||||||
Level 3 | Balance at | Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss)* | Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss) | Purchases | Sales | Settlements | Transfers into | Transfers out | Balance at | Unrealized gains (losses) on Level 3 assets and liabilities held at December 31, 2013 recognized in net income (loss)* | ||||||||||||||||||||||||||||||
(In millions) | January 1, | Level 3 | of Level 3 | December 31, | ||||||||||||||||||||||||||||||||||||
2013 | 2013 | |||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||
Corporate and other bonds | $ | 219 | $ | 3 | $ | — | $ | 142 | $ | (116 | ) | $ | (44 | ) | $ | 51 | $ | (51 | ) | $ | 204 | $ | (2 | ) | ||||||||||||||||
States, municipalities and political subdivisions | 96 | (2 | ) | 4 | 122 | (79 | ) | (61 | ) | 18 | (27 | ) | 71 | — | ||||||||||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed | 413 | 4 | (14 | ) | 116 | (10 | ) | (75 | ) | 4 | (107 | ) | 331 | (3 | ) | |||||||||||||||||||||||||
Commercial mortgage-backed | 129 | — | 11 | 107 | (3 | ) | (11 | ) | 21 | (103 | ) | 151 | — | |||||||||||||||||||||||||||
Other asset-backed | 368 | 5 | (4 | ) | 314 | (197 | ) | (35 | ) | — | (5 | ) | 446 | (2 | ) | |||||||||||||||||||||||||
Total asset-backed | 910 | 9 | (7 | ) | 537 | (210 | ) | (121 | ) | 25 | (215 | ) | 928 | (5 | ) | |||||||||||||||||||||||||
Redeemable preferred stock | 26 | (1 | ) | — | — | — | (25 | ) | — | — | — | — | ||||||||||||||||||||||||||||
Total fixed maturity securities | 1,251 | 9 | (3 | ) | 801 | (405 | ) | (251 | ) | 94 | (293 | ) | 1,203 | (7 | ) | |||||||||||||||||||||||||
Equity securities | 34 | (27 | ) | 3 | 2 | — | — | — | (1 | ) | 11 | (27 | ) | |||||||||||||||||||||||||||
Other invested assets, including derivatives, net | — | — | — | — | (1 | ) | 1 | — | — | — | — | |||||||||||||||||||||||||||||
Short term investments | 6 | — | — | — | (6 | ) | — | — | — | — | — | |||||||||||||||||||||||||||||
Life settlement contracts | 100 | 13 | — | — | — | (25 | ) | — | — | 88 | (2 | ) | ||||||||||||||||||||||||||||
Separate account business | 2 | — | — | 1 | (2 | ) | — | — | — | 1 | — | |||||||||||||||||||||||||||||
Total | $ | 1,393 | $ | (5 | ) | $ | — | $ | 804 | $ | (414 | ) | $ | (275 | ) | $ | 94 | $ | (294 | ) | $ | 1,303 | $ | (36 | ) | |||||||||||||||
* Net realized and unrealized gains and losses shown above are reported in Net income (loss) as follows: | ||||||||||||||||||||||||||||||||||||||||
Major Category of Assets and Liabilities | Consolidated Statements of Operations Line Items | |||||||||||||||||||||||||||||||||||||||
Fixed maturity securities available-for-sale | Net realized investment gains (losses) | |||||||||||||||||||||||||||||||||||||||
Fixed maturity securities trading | Net investment income | |||||||||||||||||||||||||||||||||||||||
Equity securities | Net realized investment gains (losses) | |||||||||||||||||||||||||||||||||||||||
Other invested assets - Derivative financial instruments held in a trading portfolio | Net investment income | |||||||||||||||||||||||||||||||||||||||
Other invested assets - Derivative financial instruments not held in a trading portfolio | Net realized investment gains (losses) | |||||||||||||||||||||||||||||||||||||||
Other invested assets - Overseas deposits | Net investment income | |||||||||||||||||||||||||||||||||||||||
Life settlement contracts | Other revenues | |||||||||||||||||||||||||||||||||||||||
Other liabilities - Derivative financial instruments | Net realized investment gains (losses) | |||||||||||||||||||||||||||||||||||||||
Securities shown on the previous page may be transferred in or out of levels within the fair value hierarchy based on the availability of observable market information and quoted prices used to determine the fair value of the security. The availability of observable market information and quoted prices varies based on market conditions and trading volume. During the year ended December 31, 2014 there were $24 million of transfers from Level 2 to Level 1 and $1 million from Level 1 to Level 2. There were no transfers between Level 1 and Level 2 during the year ended December 31, 2013. The Company's policy is to recognize transfers between levels at the beginning of quarterly reporting periods. | ||||||||||||||||||||||||||||||||||||||||
Valuation Methodologies and Inputs | ||||||||||||||||||||||||||||||||||||||||
The following section describes the valuation methodologies and relevant inputs used to measure different financial instruments at fair value, including an indication of the level in the fair value hierarchy in which the instruments are generally classified. | ||||||||||||||||||||||||||||||||||||||||
Fixed Maturity Securities | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities are valued using methodologies that model information generated by market transactions involving identical or comparable assets, as well as discounted cash flow methodologies. Common inputs include prices from recently executed transactions of similar securities, broker/dealer quotes, benchmark yields, spreads off benchmark yields, interest rates and U.S. Treasury or swap curves. Specifically for asset-backed securities, key inputs include prepayment and default projections based on past performance of the underlying collateral and current market data. | ||||||||||||||||||||||||||||||||||||||||
Level 1 securities include exchange traded bonds, highly liquid U.S. and foreign government bonds and redeemable preferred stock, valued using quoted market prices. Level 2 securities include most other fixed maturity securities as the significant inputs are observable in the marketplace. Securities are generally assigned to Level 3 in cases where broker/dealer quotes are significant inputs to the valuation and there is a lack of transparency as to whether these quotes are based on information that is observable in the marketplace. Level 3 securities also include private placement debt securities whose fair value is determined using internal models with inputs that are not market observable. | ||||||||||||||||||||||||||||||||||||||||
Equity Securities | ||||||||||||||||||||||||||||||||||||||||
Level 1 equity securities include publicly traded securities valued using quoted market prices. Level 2 securities are primarily non-redeemable preferred stocks and common stocks valued using pricing for similar securities, recently executed transactions, broker/dealer quotes and other pricing models utilizing market observable inputs. Level 3 securities are priced using internal models with inputs that are not market observable. | ||||||||||||||||||||||||||||||||||||||||
Derivative Financial Investments | ||||||||||||||||||||||||||||||||||||||||
Level 1 securities include exchange traded derivatives, primarily futures, valued using quoted market prices. Level 2 securities primarily include the embedded derivative on funds withheld liability and currency forwards. The embedded derivative on funds withheld liability is valued using the change in fair value of the assets supporting the funds withheld payable, which are fixed maturity securities valued with observable inputs. Currency forwards are valued using observable market forward rates. Over-the-counter derivatives, principally interest rate swaps, total return swaps, equity warrants and options, are valued using inputs including broker/dealer quotes and are classified within Level 3 of the valuation hierarchy due to a lack of transparency as to whether these quotes are based on information that is observable in the marketplace. | ||||||||||||||||||||||||||||||||||||||||
Overseas Deposits | ||||||||||||||||||||||||||||||||||||||||
Overseas deposits, which can be redeemed at net asset value in 90 days or less, are classified as Level 2. | ||||||||||||||||||||||||||||||||||||||||
Short Term Investments | ||||||||||||||||||||||||||||||||||||||||
Securities that are actively traded or have quoted prices are classified as Level 1. These securities include money market funds and treasury bills. Level 2 primarily includes commercial paper, for which all inputs are market observable. Fixed maturity securities purchased within one year of maturity are classified consistent with fixed maturity securities discussed above. Short term investments as presented in the tables above differ from the amounts presented on the Consolidated Balance Sheets because certain short term investments, such as time deposits, are not measured at fair value. | ||||||||||||||||||||||||||||||||||||||||
Life Settlement Contracts | ||||||||||||||||||||||||||||||||||||||||
The fair values of life settlement contracts are determined as the present value of the anticipated death benefits less anticipated premium payments based on contract terms that are distinct for each insured, as well as the Company's own assumptions for mortality, premium expense and the rate of return that a buyer would require on the contracts, as no comparable market pricing data is available. | ||||||||||||||||||||||||||||||||||||||||
Separate Account Business | ||||||||||||||||||||||||||||||||||||||||
Separate account business included fixed maturity securities, equities and short term investments. The valuation methodologies and inputs for these asset types have been described above. | ||||||||||||||||||||||||||||||||||||||||
Significant Unobservable Inputs | ||||||||||||||||||||||||||||||||||||||||
The table below presents quantitative information about the significant unobservable inputs utilized by the Company in the fair value measurements of Level 3 assets. Valuations for assets and liabilities not presented in the table below are primarily based on broker/dealer quotes for which there is a lack of transparency as to inputs used to develop the valuations. The quantitative detail of these unobservable inputs is neither provided nor reasonably available to the Company. | ||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||||||||||||||
Assets | Fair Value | Valuation Technique(s) | Unobservable Input(s) | Range | ||||||||||||||||||||||||||||||||||||
(In millions) | (Weighted Average) | |||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | $ | 101 | Discounted cash flow | Credit spread | 2% - 13% (3%) | |||||||||||||||||||||||||||||||||||
Equity securities | 16 | Market approach | Private offering price | $12 - $4,391 per share ($600) | ||||||||||||||||||||||||||||||||||||
Life settlement contracts | 82 | Discounted cash flow | Discount rate risk premium | 9% | ||||||||||||||||||||||||||||||||||||
Mortality assumption | 55% - 1676% (163%) | |||||||||||||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||
Assets | Fair Value | Valuation Technique(s) | Unobservable Input(s) | Range | ||||||||||||||||||||||||||||||||||||
(In millions) | (Weighted Average) | |||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | $ | 142 | Discounted cash flow | Credit spread | 2% - 20% (4%) | |||||||||||||||||||||||||||||||||||
Equity securities | 10 | Market approach | Private offering price | $360 - $4,268 per share ($1,148) | ||||||||||||||||||||||||||||||||||||
Life settlement contracts | 88 | Discounted cash flow | Discount rate risk premium | 9% | ||||||||||||||||||||||||||||||||||||
Mortality assumption | 70% -743% (192%) | |||||||||||||||||||||||||||||||||||||||
For fixed maturity securities, an increase to the credit spread assumptions would result in a lower fair value measurement. For equity securities, an increase in the private offering price would result in a higher fair value measurement. For life settlement contracts, an increase in the discount rate risk premium or decrease in the mortality assumption would result in a lower fair value measurement. | ||||||||||||||||||||||||||||||||||||||||
Financial Assets and Liabilities Not Measured at Fair Value | ||||||||||||||||||||||||||||||||||||||||
The carrying amount and estimated fair value of the Company's financial instrument assets and liabilities which are not measured at fair value on the Consolidated Balance Sheets are listed in the tables below. | ||||||||||||||||||||||||||||||||||||||||
December 31, 2014 | Carrying | Estimated Fair Value | ||||||||||||||||||||||||||||||||||||||
(In millions) | Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||
Financial assets | ||||||||||||||||||||||||||||||||||||||||
Notes receivable for the issuance of common stock | $ | 1 | $ | — | $ | — | $ | 1 | $ | 1 | ||||||||||||||||||||||||||||||
Mortgage loans | 588 | — | — | 608 | 608 | |||||||||||||||||||||||||||||||||||
Financial liabilities | ||||||||||||||||||||||||||||||||||||||||
Long term debt | $ | 2,559 | $ | — | $ | 2,883 | $ | — | $ | 2,883 | ||||||||||||||||||||||||||||||
December 31, 2013 | Carrying | Estimated Fair Value | ||||||||||||||||||||||||||||||||||||||
(In millions) | Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||
Financial assets | ||||||||||||||||||||||||||||||||||||||||
Notes receivable for the issuance of common stock | $ | 23 | $ | — | $ | — | $ | 23 | $ | 23 | ||||||||||||||||||||||||||||||
Mortgage loans | 508 | — | — | 515 | 515 | |||||||||||||||||||||||||||||||||||
Financial liabilities | ||||||||||||||||||||||||||||||||||||||||
Premium deposits and annuity contracts | $ | 57 | $ | — | $ | — | $ | 58 | $ | 58 | ||||||||||||||||||||||||||||||
Short term debt | 549 | — | 575 | — | 575 | |||||||||||||||||||||||||||||||||||
Long term debt | 2,011 | — | 2,328 | — | 2,328 | |||||||||||||||||||||||||||||||||||
The following methods and assumptions were used to estimate the fair value of these financial assets and liabilities. | ||||||||||||||||||||||||||||||||||||||||
The fair values of Notes receivable for the issuance of common stock were estimated using discounted cash flows utilizing interest rates currently offered for obligations securitized with similar collateral, adjusted for specific note receivable risk. | ||||||||||||||||||||||||||||||||||||||||
The fair values of Mortgage loans were based on the present value of the expected future cash flows discounted at the current interest rate for origination of similar quality loans, adjusted for specific loan risk. | ||||||||||||||||||||||||||||||||||||||||
Premium deposits and annuity contracts were valued based on cash surrender values or estimated fair values of policyholder liabilities, net of amounts ceded related to sold business. | ||||||||||||||||||||||||||||||||||||||||
The Company's senior notes and debentures were valued based on observable market prices. The fair value for other debt was estimated using discounted cash flows based on current incremental borrowing rates for similar borrowing arrangements. | ||||||||||||||||||||||||||||||||||||||||
The carrying amounts reported on the Consolidated Balance Sheets for Cash, Short term investments not carried at fair value, Accrued investment income and certain other assets and other liabilities approximate fair value due to the short term nature of these items. These assets and liabilities are not listed in the tables above. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | Note E. Income Taxes | |||||||||||
The CNA Tax Group is included in the consolidated federal income tax return of Loews and its eligible subsidiaries. Loews and the Company have agreed that for each taxable year, the Company will 1) be paid by Loews the amount, if any, by which the Loews consolidated federal income tax liability is reduced by virtue of the inclusion of the CNA Tax Group in the Loews consolidated federal income tax return, or 2) pay to Loews an amount, if any, equal to the federal income tax that would have been payable by the CNA Tax Group filing a separate consolidated tax return. In the event that Loews should have a net operating loss in the future computed on the basis of filing a separate consolidated tax return without the CNA Tax Group, the Company may be required to repay tax recoveries previously received from Loews. This agreement may be canceled by either party upon 30 days written notice. | ||||||||||||
For the years ended December 31, 2014 and 2013, the Company paid $287 million and $89 million to Loews related to federal income taxes. For the year ended December 31, 2012, the Company received from Loews $75 million related to federal income taxes. | ||||||||||||
For 2012 through 2014, the IRS has accepted Loews and the Company into the Compliance Assurance Process (CAP), which is a voluntary program for large corporations. Under CAP, the IRS conducts a real-time audit and works contemporaneously with the Company to resolve any issues prior to the filing of the tax return. The Company believes that this approach should reduce tax-related uncertainties, if any. | ||||||||||||
At December 31, 2014 and 2013, there were no unrecognized tax benefits. | ||||||||||||
The Company recognizes interest accrued related to: 1) unrecognized tax benefits in Interest expense and 2) tax refund claims in Other revenues on the Consolidated Statements of Operations. The Company recognizes penalties (if any) in Income tax (expense) benefit on the Consolidated Statements of Operations. During 2014 and 2013, the Company recognized no interest and no penalties. During 2012, the Company recognized $2 million of interest income and no penalties. There were no amounts accrued for interest or penalties at December 31, 2014 or 2013. | ||||||||||||
The following table provides a reconciliation between the Company's federal income tax expense at statutory rates and the recorded income tax expense, excluding discontinued operations. | ||||||||||||
Tax Reconciliation | ||||||||||||
Years ended December 31 | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Income tax expense at statutory rates | $ | (423 | ) | $ | (447 | ) | $ | (301 | ) | |||
Tax benefit from tax exempt income | 119 | 97 | 84 | |||||||||
Foreign taxes and credits | (6 | ) | (1 | ) | (13 | ) | ||||||
Other tax expense | (9 | ) | (10 | ) | (9 | ) | ||||||
Income tax expense | $ | (319 | ) | $ | (361 | ) | $ | (239 | ) | |||
At December 31, 2014, no deferred taxes are required on the undistributed earnings of subsidiaries subject to tax. | ||||||||||||
The following table provides the current and deferred components of the Company's income tax expense, excluding taxes on discontinued operations. | ||||||||||||
Current and Deferred Taxes | ||||||||||||
Years ended December 31 | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Current tax expense | $ | (318 | ) | $ | (292 | ) | $ | (94 | ) | |||
Deferred tax expense | (1 | ) | (69 | ) | (145 | ) | ||||||
Total income tax expense | $ | (319 | ) | $ | (361 | ) | $ | (239 | ) | |||
Total income tax presented above includes foreign tax expense of approximately $24 million, $24 million and $34 million related to income from continuing foreign operations of approximately $66 million, $101 million and $88 million for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||
The deferred tax effects of the significant components of the Company's deferred tax assets and liabilities are set forth in the table below. | ||||||||||||
Components of Net Deferred Tax Asset | ||||||||||||
31-Dec | ||||||||||||
(In millions) | 2014 | 2013 | ||||||||||
Deferred Tax Assets: | ||||||||||||
Insurance reserves: | ||||||||||||
Property and casualty claim and claim adjustment expense reserves | $ | 265 | $ | 289 | ||||||||
Unearned premium reserves | 187 | 178 | ||||||||||
Receivables | 35 | 50 | ||||||||||
Employee benefits | 289 | 187 | ||||||||||
Life settlement contracts | 46 | 46 | ||||||||||
Deferred retroactive reinsurance benefit | 61 | 66 | ||||||||||
Other assets | 138 | 149 | ||||||||||
Gross deferred tax assets | 1,021 | 965 | ||||||||||
Deferred Tax Liabilities: | ||||||||||||
Investment valuation differences | 50 | 68 | ||||||||||
Deferred acquisition costs | 226 | 232 | ||||||||||
Net unrealized gains | 489 | 383 | ||||||||||
Other liabilities | 65 | 62 | ||||||||||
Gross deferred tax liabilities | 830 | 745 | ||||||||||
Net deferred tax asset | $ | 191 | $ | 220 | ||||||||
At December 31, 2014, the CNA Tax Group had no loss carryforwards or tax credit carryforwards. | ||||||||||||
Although realization of deferred tax assets is not assured, management believes it is more likely than not that the recognized net deferred tax asset will be realized through recoupment of ordinary and capital taxes paid in prior carryback years and through future earnings, reversal of existing temporary differences and available tax planning strategies. As a result, no valuation allowance was recorded at December 31, 2014 or 2013. |
Claim_and_Claim_Adjustment_Exp
Claim and Claim Adjustment Expense Reserves | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Insurance Loss Reserves [Abstract] | ||||||||||||||||||||||||
Claim and Claim Adjustment Expense Reserves | Note F. Claim and Claim Adjustment Expense Reserves | |||||||||||||||||||||||
The Company's property and casualty insurance claim and claim adjustment expense reserves represent the estimated amounts necessary to resolve all outstanding claims, including IBNR claims as of the reporting date. The Company's reserve projections are based primarily on detailed analysis of the facts in each case, the Company's experience with similar cases and various historical development patterns. Consideration is given to such historical patterns as field reserving trends and claims settlement practices, loss payments, pending levels of unpaid claims and product mix, as well as court decisions, economic conditions including inflation and public attitudes. All of these factors can affect the estimation of claim and claim adjustment expense reserves. | ||||||||||||||||||||||||
Establishing claim and claim adjustment expense reserves, including claim and claim adjustment expense reserves for catastrophic events that have occurred, is an estimation process. Many factors can ultimately affect the final settlement of a claim and, therefore, the necessary reserve. Changes in the law, results of litigation, medical costs, the cost of repair materials and labor rates can all affect ultimate claim costs. In addition, time can be a critical part of reserving determinations since the longer the span between the incidence of a loss and the payment or settlement of the claim, the more variable the ultimate settlement amount can be. Accordingly, short-tail claims, such as property damage claims, tend to be more reasonably estimable than long-tail claims, such as workers' compensation, general liability and professional liability claims. Adjustments to prior year reserve estimates, if necessary, are reflected in the results of operations in the period that the need for such adjustments is determined. There can be no assurance that the Company's ultimate cost for insurance losses will not exceed current estimates. | ||||||||||||||||||||||||
Catastrophes are an inherent risk of the property and casualty insurance business and have contributed to material period-to-period fluctuations in the Company's results of operations and/or equity. The Company reported catastrophe losses, net of reinsurance, of $156 million, $169 million and $391 million for the years ended December 31, 2014, 2013 and 2012. Catastrophe losses in 2012 included Storm Sandy. | ||||||||||||||||||||||||
The table below provides a reconciliation between beginning and ending claim and claim adjustment expense reserves, including claim and claim adjustment expense reserves of the life company as of and for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||||||||||||
Reconciliation of Claim and Claim Adjustment Expense Reserves | ||||||||||||||||||||||||
As of and for the years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Reserves, beginning of year: | ||||||||||||||||||||||||
Gross | $ | 24,089 | $ | 24,763 | $ | 24,303 | ||||||||||||||||||
Ceded | 4,972 | 5,126 | 5,020 | |||||||||||||||||||||
Net reserves, beginning of year | 19,117 | 19,637 | 19,283 | |||||||||||||||||||||
Change in net reserves due to acquisition (disposition) of subsidiaries | (13 | ) | — | 291 | ||||||||||||||||||||
Net incurred claim and claim adjustment expenses: | ||||||||||||||||||||||||
Provision for insured events of current year | 5,043 | 5,114 | 5,273 | |||||||||||||||||||||
Decrease in provision for insured events of prior years | (36 | ) | (115 | ) | (182 | ) | ||||||||||||||||||
Amortization of discount | 161 | 154 | 145 | |||||||||||||||||||||
Total net incurred (a) | 5,168 | 5,153 | 5,236 | |||||||||||||||||||||
Net payments attributable to: | ||||||||||||||||||||||||
Current year events | (945 | ) | (981 | ) | (988 | ) | ||||||||||||||||||
Prior year events | (4,355 | ) | (4,588 | ) | (4,280 | ) | ||||||||||||||||||
Total net payments | (5,300 | ) | (5,569 | ) | (5,268 | ) | ||||||||||||||||||
Foreign currency translation adjustment and other | (45 | ) | (104 | ) | 95 | |||||||||||||||||||
Net reserves, end of year | 18,927 | 19,117 | 19,637 | |||||||||||||||||||||
Ceded reserves, end of year | 4,344 | 4,972 | 5,126 | |||||||||||||||||||||
Gross reserves, end of year | $ | 23,271 | $ | 24,089 | $ | 24,763 | ||||||||||||||||||
(a) | Total net incurred above does not agree to Insurance claims and policyholders' benefits as reflected on the Consolidated Statements of Operations due to amounts related to retroactive reinsurance deferred gain accounting, uncollectible reinsurance and loss deductible receivables, and benefit expenses related to future policy benefits and policyholders' funds, which are not reflected in the table above. | |||||||||||||||||||||||
The changes in provision for insured events of prior years (net prior year claim and claim adjustment expense reserve development, including unallocated claim and claim adjustment expense) were as follows. | ||||||||||||||||||||||||
Reserve Development | ||||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Property and casualty reserve development | $ | (39 | ) | $ | (115 | ) | $ | (180 | ) | |||||||||||||||
Life reserve development in life company | 3 | — | (2 | ) | ||||||||||||||||||||
Total | $ | (36 | ) | $ | (115 | ) | $ | (182 | ) | |||||||||||||||
The following tables summarize the gross and net carried reserves as of December 31, 2014 and 2013. | ||||||||||||||||||||||||
Gross and Net Carried Claim and Claim Adjustment Expense Reserves | ||||||||||||||||||||||||
December 31, 2014 | Specialty | Commercial | International | Life & | Corporate | Total | ||||||||||||||||||
(In millions) | Group Non-Core | & Other Non-Core | ||||||||||||||||||||||
Gross Case Reserves | $ | 2,136 | $ | 5,298 | $ | 752 | $ | 2,881 | $ | 1,189 | $ | 12,256 | ||||||||||||
Gross IBNR Reserves | 4,093 | 4,216 | 689 | 302 | 1,715 | 11,015 | ||||||||||||||||||
Total Gross Carried Claim and Claim Adjustment Expense Reserves | $ | 6,229 | $ | 9,514 | $ | 1,441 | $ | 3,183 | $ | 2,904 | $ | 23,271 | ||||||||||||
Net Case Reserves | $ | 1,929 | $ | 4,947 | $ | 598 | $ | 2,572 | $ | 144 | $ | 10,190 | ||||||||||||
Net IBNR Reserves | 3,726 | 3,906 | 663 | 271 | 171 | 8,737 | ||||||||||||||||||
Total Net Carried Claim and Claim Adjustment Expense Reserves | $ | 5,655 | $ | 8,853 | $ | 1,261 | $ | 2,843 | $ | 315 | $ | 18,927 | ||||||||||||
December 31, 2013 | Specialty | Commercial | International | Life & | Corporate | Total | ||||||||||||||||||
(In millions) | Group Non-Core | & Other Non-Core | ||||||||||||||||||||||
Gross Case Reserves | $ | 2,001 | $ | 5,570 | $ | 803 | $ | 2,748 | $ | 1,140 | $ | 12,262 | ||||||||||||
Gross IBNR Reserves | 4,057 | 4,521 | 772 | 310 | 2,167 | 11,827 | ||||||||||||||||||
Total Gross Carried Claim and Claim Adjustment Expense Reserves | $ | 6,058 | $ | 10,091 | $ | 1,575 | $ | 3,058 | $ | 3,307 | $ | 24,089 | ||||||||||||
Net Case Reserves | $ | 1,793 | $ | 5,119 | $ | 629 | $ | 2,352 | $ | 283 | $ | 10,176 | ||||||||||||
Net IBNR Reserves | 3,789 | 3,992 | 705 | 271 | 184 | 8,941 | ||||||||||||||||||
Total Net Carried Claim and Claim Adjustment Expense Reserves | $ | 5,582 | $ | 9,111 | $ | 1,334 | $ | 2,623 | $ | 467 | $ | 19,117 | ||||||||||||
Net Prior Year Development | ||||||||||||||||||||||||
Changes in estimates of claim and allocated claim adjustment expense reserves and premium accruals, net of reinsurance, for prior years are defined as net prior year development. These changes can be favorable or unfavorable. The following tables and discussion include the net prior year development recorded for Specialty, Commercial, International and Corporate & Other Non-Core segments for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||||||||||||
Favorable net prior year development of $14 million, $9 million and $11 million was recorded in the Life & Group Non-Core segment for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||||||||||||
Net Prior Year Development | ||||||||||||||||||||||||
Year ended December 31, 2014 | ||||||||||||||||||||||||
(In millions) | Specialty | Commercial | International | Corporate | Total | |||||||||||||||||||
& Other | ||||||||||||||||||||||||
Non-Core | ||||||||||||||||||||||||
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development | $ | (136 | ) | $ | 176 | $ | (59 | ) | $ | (2 | ) | $ | (21 | ) | ||||||||||
Pretax (favorable) unfavorable premium development | (13 | ) | (20 | ) | 2 | (1 | ) | (32 | ) | |||||||||||||||
Total pretax (favorable) unfavorable net prior year development | $ | (149 | ) | $ | 156 | $ | (57 | ) | $ | (3 | ) | $ | (53 | ) | ||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||||||
(In millions) | Specialty | Commercial | International | Corporate | Total | |||||||||||||||||||
& Other | ||||||||||||||||||||||||
Non-Core | ||||||||||||||||||||||||
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development | $ | (196 | ) | $ | 122 | $ | (38 | ) | $ | (6 | ) | $ | (118 | ) | ||||||||||
Pretax (favorable) unfavorable premium development | (14 | ) | (8 | ) | (21 | ) | 1 | (42 | ) | |||||||||||||||
Total pretax (favorable) unfavorable net prior year development | $ | (210 | ) | $ | 114 | $ | (59 | ) | $ | (5 | ) | $ | (160 | ) | ||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||||||
(In millions) | Specialty | Commercial | International | Corporate | Total | |||||||||||||||||||
& Other | ||||||||||||||||||||||||
Non-Core | ||||||||||||||||||||||||
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development | $ | (93 | ) | $ | (25 | ) | $ | (74 | ) | $ | (13 | ) | $ | (205 | ) | |||||||||
Pretax (favorable) unfavorable premium development | (14 | ) | (36 | ) | 3 | 1 | (46 | ) | ||||||||||||||||
Total pretax (favorable) unfavorable net prior year development | $ | (107 | ) | $ | (61 | ) | $ | (71 | ) | $ | (12 | ) | $ | (251 | ) | |||||||||
Premium development can occur in the property and casualty business when there is a change in exposure on auditable policies or when premium accruals differ from processed premium. Audits on policies usually occur in a period after the expiration date of the policy. | ||||||||||||||||||||||||
For the year ended December 31, 2013, favorable premium development for International was recorded related to a commutation as discussed later in this note. | ||||||||||||||||||||||||
Specialty | ||||||||||||||||||||||||
The following table provides further detail of the net prior year claim and allocated claim adjustment expense reserve development (development) recorded for the Specialty segment for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development: | ||||||||||||||||||||||||
Medical Professional Liability | $ | 39 | $ | (27 | ) | $ | (34 | ) | ||||||||||||||||
Other Professional Liability and Management Liability | (87 | ) | (73 | ) | 19 | |||||||||||||||||||
Surety | (82 | ) | (74 | ) | (63 | ) | ||||||||||||||||||
Warranty | (2 | ) | (3 | ) | (5 | ) | ||||||||||||||||||
Other | (4 | ) | (19 | ) | (10 | ) | ||||||||||||||||||
Total pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development | $ | (136 | ) | $ | (196 | ) | $ | (93 | ) | |||||||||||||||
2014 | ||||||||||||||||||||||||
Unfavorable development for medical professional liability was primarily related to increased frequency of large medical products liability class action lawsuits in accident years 2012 and prior and increased frequency of other large medical professional liability losses in accident years 2011 through 2013. | ||||||||||||||||||||||||
Overall, favorable development for other professional liability and management liability was related to better than expected severity in accident years 2008 through 2011, including favorable outcomes on individual large claims. Additional favorable development related to lower than expected frequency in accident years 2011 through 2013. Unfavorable development was recorded due to higher than expected severity in financial institution and professional service coverages in accident years 2009 through 2011. | ||||||||||||||||||||||||
Favorable development for surety coverages was primarily due to better than expected large loss emergence in accident years 2012 and prior. | ||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||
Overall, favorable development for medical professional liability reflects favorable experience in accident years 2009 and prior. Unfavorable development was recorded for accident years 2010 and 2011 due to higher than expected large loss activity. | ||||||||||||||||||||||||
Overall, favorable development for other professional liability and management liability was related to better than expected loss emergence in accident years 2010 and prior. Unfavorable development was recorded in accident year 2011 related to an increase in severity in management liability. | ||||||||||||||||||||||||
Favorable development for surety coverages was primarily due to better than expected large loss emergence in accident years 2011 and prior. | ||||||||||||||||||||||||
Other includes standard property and casualty coverages provided to Specialty customers. Favorable development for other coverages was primarily due to better than expected loss emergence in property coverages primarily in accident years 2010 and subsequent. | ||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||
Favorable development for medical professional liability was primarily due to better than expected loss emergence in accident years 2008 and prior. | ||||||||||||||||||||||||
Overall, unfavorable development for other professional liability and management liability was primarily due to increased frequency and severity in our lawyer coverages in accident years 2008 through 2011, a large claim settlement in 2005 related to lawyers and increased frequency of large claims in public company directors and officers coverages related to the financial crisis in accident year 2011. Favorable development was recorded primarily due to better than expected loss emergence in accident years 2003 through 2009. | ||||||||||||||||||||||||
Favorable development for surety coverages was primarily due to better than expected loss emergence in accident years 2010 and prior. | ||||||||||||||||||||||||
Overall, favorable development for other coverages was primarily due to favorable loss emergence in property and workers' compensation coverages in accident years 2005 and subsequent. Unfavorable development was recorded in accident year 2009 primarily due to an unfavorable outcome on an individual general liability claim. | ||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||
The following table provides further detail of the development recorded for the Commercial segment for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development: | ||||||||||||||||||||||||
Commercial Auto | $ | 31 | $ | 18 | $ | 25 | ||||||||||||||||||
General Liability | 45 | 64 | (66 | ) | ||||||||||||||||||||
Workers' Compensation | 139 | 91 | 15 | |||||||||||||||||||||
Property and Other | (39 | ) | (51 | ) | 1 | |||||||||||||||||||
Total pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development | $ | 176 | $ | 122 | $ | (25 | ) | |||||||||||||||||
2014 | ||||||||||||||||||||||||
Unfavorable development for commercial auto was primarily related to higher than expected frequency in accident years 2012 and 2013 and higher than expected severity for liability coverages in accident years 2010 through 2013. Favorable development was recorded related to fewer large claims than expected in accident years 2008 and 2009. | ||||||||||||||||||||||||
Overall, unfavorable development for general liability was primarily related to higher than expected severity in accident years 2010 through 2013. Favorable development was recorded primarily related to lower than expected frequency of large losses in accident years 2005 through 2009. | ||||||||||||||||||||||||
Overall, unfavorable development for workers’ compensation was primarily due to increased medical severity in accident years 2010 and prior, higher than expected severity related to Defense Base Act (DBA) contractors in accident years 2010 through 2013 and the recognition of losses related to favorable premium development in accident year 2013. Favorable development of $26 million was recorded in accident years 1996 and prior related to the commutation of a workers’ compensation reinsurance pool. | ||||||||||||||||||||||||
Favorable development for property and other first-party coverages was recorded in accident years 2013 and prior, primarily related to fewer claims than expected and favorable individual claim settlements. | ||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||
Unfavorable development for commercial auto coverages was primarily due to higher than expected frequency in accident years 2011 and 2012 and large loss emergence in accident years 2009 and 2010. | ||||||||||||||||||||||||
Unfavorable development for general liability coverages was primarily related to increased incurred loss severity in accident years 2010 through 2012. | ||||||||||||||||||||||||
Unfavorable development for workers' compensation includes the Company's response to legislation enacted during 2013 related to the New York Fund for Reopened Cases. The law change necessitated an increase in reserves as re-opened workers' compensation claims can no longer be turned over to the state for handling and payment after December 31, 2013. Additional unfavorable development was recorded in accident year 2012 related to increased frequency and severity on claims related to DBA contractors and in accident year 2010 due to higher than expected large losses and increased severity in the state of California. | ||||||||||||||||||||||||
Favorable development for property and other coverages was primarily related to favorable outcomes on litigated catastrophe claims in accident years 2005 and 2010 as well as favorable loss emergence in non-catastrophe losses in accident years 2010 through 2012. | ||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||
Unfavorable development for commercial auto coverages was primarily due to higher than expected loss emergence in accident years 2007 and subsequent and higher than expected frequency in accident year 2011. | ||||||||||||||||||||||||
Overall, favorable development for general liability coverages was primarily due to better than expected loss emergence in accident years 2006 and subsequent related to umbrella business and 2003 and prior related to large account business. Unfavorable development was recorded in accident years 2009 through 2011 related to several large losses. | ||||||||||||||||||||||||
Overall, unfavorable development for workers' compensation was primarily due to increased medical severity in accident years 2010 and 2011 and the recognition of losses related to favorable premium development in accident year 2011. Favorable development was recorded in accident years 2001 and prior reflecting favorable experience. | ||||||||||||||||||||||||
International | ||||||||||||||||||||||||
The following table provides further detail of the development recorded for the International segment for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development: | ||||||||||||||||||||||||
Medical Professional Liability | $ | (7 | ) | $ | (7 | ) | $ | 1 | ||||||||||||||||
Other Professional Liability | (26 | ) | (30 | ) | (41 | ) | ||||||||||||||||||
Liability | (13 | ) | (8 | ) | (2 | ) | ||||||||||||||||||
Property & Marine | (14 | ) | 13 | (30 | ) | |||||||||||||||||||
Other | (9 | ) | (17 | ) | (2 | ) | ||||||||||||||||||
Commutations | 10 | 11 | — | |||||||||||||||||||||
Total pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development | $ | (59 | ) | $ | (38 | ) | $ | (74 | ) | |||||||||||||||
2014 | ||||||||||||||||||||||||
Overall, favorable development for other professional liability was primarily related to better than expected severity in accident years 2012 and prior. Unfavorable development was recorded in accident year 2008 due to financial crisis claims. | ||||||||||||||||||||||||
Favorable development for liability was primarily related to better than expected frequency and severity in accident years 2009 and subsequent. | ||||||||||||||||||||||||
Favorable development for property and marine coverages primarily related to better than expected frequency of large claims in accident years 2012 and prior. | ||||||||||||||||||||||||
Favorable development for other coverages was a result of better than expected frequency in Hardy, primarily in financial institution coverages. | ||||||||||||||||||||||||
Reinsurance commutations in the first quarter of 2014 reduced ceded losses from prior years. Overall the commutations increased net operating income because of the release of the related allowance for uncollectible reinsurance. | ||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||
Overall, favorable development for other professional liability was primarily related to better than expected severity in accident years 2011 and prior. Unfavorable development was recorded related to higher than expected severity in accident year 2012. | ||||||||||||||||||||||||
Overall, unfavorable development for property and marine coverages was primarily due to 2011 catastrophe events, including the Thailand floods and the New Zealand Lyttelton earthquake, and one large non-catastrophe claim. Favorable development was recorded related to better than expected severity in accident years 2008 through 2011. | ||||||||||||||||||||||||
Favorable development for other coverages was largely a result of better than expected severity in Hardy in accident year 2012. | ||||||||||||||||||||||||
The commutation of a third-party capital provider's 15% participation in the 2012 year of account resulted in recognition of the 15% share of year of account premiums, losses and expenses. | ||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||
Favorable development for other professional liability was primarily related to better than expected severity in accident years 2007 and prior. | ||||||||||||||||||||||||
Favorable development for property and marine coverages related to better than expected severity in accident years 2011 and prior. | ||||||||||||||||||||||||
A&EP Reserves | ||||||||||||||||||||||||
In 2010, Continental Casualty Company (CCC) together with several of the Company’s insurance subsidiaries completed a transaction with National Indemnity Company (NICO), a subsidiary of Berkshire Hathaway Inc., under which substantially all of the Company’s legacy A&EP liabilities were ceded to NICO (Loss Portfolio Transfer or LPT). Under the terms of the NICO transaction, the Company ceded approximately $1.6 billion of net A&EP claim and allocated claim adjustment expense reserves to NICO under a retroactive reinsurance agreement with an aggregate limit of $4 billion. The $1.6 billion of claim and allocated claim adjustment expense reserves ceded to NICO was net of $1.2 billion of ceded claim and allocated claim adjustment expense reserves under existing third-party reinsurance contracts. The NICO aggregate reinsurance limit also covers credit risk on the existing third-party reinsurance related to these liabilities. The Company paid NICO a reinsurance premium of $2 billion and transferred to NICO billed third-party reinsurance receivables related to A&EP claims with a net book value of $215 million, resulting in total consideration of $2.2 billion. | ||||||||||||||||||||||||
The following table displays the impact of the Loss Portfolio Transfer on the Consolidated Statements of Operations. | ||||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Net A&EP adverse development before consideration of LPT | $ | — | $ | 363 | $ | 261 | ||||||||||||||||||
Provision for uncollectible third-party reinsurance on A&EP | — | 140 | — | |||||||||||||||||||||
Additional amounts ceded under LPT | — | 503 | 261 | |||||||||||||||||||||
Retroactive reinsurance benefit recognized | (13 | ) | (314 | ) | (261 | ) | ||||||||||||||||||
Pretax impact of unrecognized deferred retroactive reinsurance benefit | $ | (13 | ) | $ | 189 | $ | — | |||||||||||||||||
During 2013 and 2012, unfavorable development was recorded for accident years 2000 and prior related to A&EP claims due to an increase in ultimate claim severity and higher than anticipated claim reporting, as well as increased defense costs. Additionally, in 2013 the Company recognized a provision for uncollectible third-party reinsurance which increased the expected recovery from NICO. The fourth quarter 2014 A&EP reserve review was not completed. Additional information and analysis on inuring third-party reinsurance recoveries are needed to finalize the review. The Company expects to complete the review in the first half of 2015. | ||||||||||||||||||||||||
In the fourth quarter of 2013, the cumulative amounts ceded under the Loss Portfolio Transfer of $2.5 billion exceeded the $2.2 billion consideration paid, resulting in a $189 million deferred retroactive reinsurance gain. This deferred benefit is recognized in earnings in proportion to actual recoveries under the Loss Portfolio Transfer. Over the life of the contract, there is no economic impact as long as any additional losses are within the limit under the contract. In 2014, $13 million of the deferred retroactive reinsurance benefit was recognized, and the remaining unrecognized benefit at December 31, 2014 was $176 million. | ||||||||||||||||||||||||
NICO established a collateral trust account as security for its obligations to the Company. The fair value of the collateral trust account at December 31, 2014 was $3.4 billion. In addition, Berkshire Hathaway Inc. guaranteed the payment obligations of NICO up to the full aggregate reinsurance limit as well as certain of NICO’s performance obligations under the trust agreement. NICO is responsible for claims handling and billing and collection from third-party reinsurers related to the Company’s A&EP claims. |
Legal_Proceedings_and_Continge
Legal Proceedings and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2014 | |
Legal Proceedings and Contingent Liabilities [Abstract] | |
Legal Proceedings and Contingent Liabilities | Note G. Legal Proceedings and Contingent Liabilities |
The Company is a party to routine litigation incidental to its business, which, based on the facts and circumstances currently known, is not material to the Consolidated Financial Statements. |
Reinsurance
Reinsurance | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Reinsurance Disclosures [Abstract] | |||||||||||||||||||
Reinsurance | Note H. Reinsurance | ||||||||||||||||||
The Company cedes insurance to reinsurers to limit its maximum loss, provide greater diversification of risk, minimize exposures on larger risks and to exit certain lines of business. The ceding of insurance does not discharge the primary liability of the Company. A credit exposure exists with respect to property and casualty and life reinsurance ceded to the extent that any reinsurer is unable to meet its obligations or to the extent that the reinsurer disputes the liabilities assumed under reinsurance agreements. Property and casualty reinsurance coverages are tailored to the specific risk characteristics of each product line and the Company's retained amount varies by type of coverage. Reinsurance contracts are purchased to protect specific lines of business such as property and workers' compensation. Corporate catastrophe reinsurance is also purchased for property and workers' compensation exposure. Currently, most reinsurance contracts are purchased on an excess of loss basis. The Company also utilizes facultative reinsurance in certain lines. In addition, the Company assumes reinsurance, primarily through Hardy and as a member of various reinsurance pools and associations. | |||||||||||||||||||
The following table summarizes the amounts receivable from reinsurers at December 31, 2014 and 2013. | |||||||||||||||||||
Components of Reinsurance Receivables | |||||||||||||||||||
31-Dec | |||||||||||||||||||
(In millions) | 2014 | 2013 | |||||||||||||||||
Reinsurance receivables related to insurance reserves: | |||||||||||||||||||
Ceded claim and claim adjustment expenses | $ | 4,344 | $ | 4,972 | |||||||||||||||
Ceded future policy benefits | 185 | 733 | |||||||||||||||||
Ceded policyholders' funds | — | 35 | |||||||||||||||||
Reinsurance receivables related to paid losses | 213 | 348 | |||||||||||||||||
Reinsurance receivables | 4,742 | 6,088 | |||||||||||||||||
Allowance for uncollectible reinsurance | (48 | ) | (71 | ) | |||||||||||||||
Reinsurance receivables, net of allowance for uncollectible reinsurance | $ | 4,694 | $ | 6,017 | |||||||||||||||
The Company has established an allowance for uncollectible reinsurance receivables. The Company reviews the allowance quarterly and adjusts the allowance as necessary to reflect changes in estimates of uncollectible balances. The allowance may also be reduced related to write-offs of reinsurance receivable balances. | |||||||||||||||||||
The Company attempts to mitigate its credit risk related to reinsurance by entering into reinsurance arrangements with reinsurers that have credit ratings above certain levels, and by obtaining collateral. On a limited basis, the Company may enter into reinsurance agreements with reinsurers that are not rated, primarily captive reinsurers. The primary methods of obtaining collateral are through reinsurance trusts, letters of credit and funds withheld balances. Such collateral was approximately $3.4 billion and $3.9 billion at December 31, 2014 and 2013. | |||||||||||||||||||
The Company's largest recoverables from a single reinsurer at December 31, 2014, including ceded unearned premium reserves were approximately $2,565 million from subsidiaries of Berkshire Hathaway Group, $244 million from subsidiaries of the Hartford Insurance Group and $185 million from subsidiaries of Wilton Re. The recoverable from the Berkshire Hathaway Group includes amounts related to third-party reinsurance for which NICO has assumed the credit risk under the terms of the Loss Portfolio Transfer as discussed in Note F to the Consolidated Financial Statements. | |||||||||||||||||||
The effects of reinsurance on earned premiums and written premiums for the years ended December 31, 2014, 2013 and 2012 are shown in the following tables. | |||||||||||||||||||
Components of Earned Premiums | |||||||||||||||||||
(In millions) | Direct | Assumed | Ceded | Net | Assumed/ | ||||||||||||||
Net % | |||||||||||||||||||
2014 Earned Premiums | |||||||||||||||||||
Property and casualty | $ | 9,452 | $ | 277 | $ | 3,073 | $ | 6,656 | 4.2 | % | |||||||||
Accident and health | 508 | 48 | — | 556 | 8.6 | % | |||||||||||||
Total earned premiums | $ | 9,960 | $ | 325 | $ | 3,073 | $ | 7,212 | 4.5 | % | |||||||||
2013 Earned Premiums | |||||||||||||||||||
Property and casualty | $ | 9,063 | $ | 258 | $ | 2,609 | $ | 6,712 | 3.8 | % | |||||||||
Accident and health | 511 | 48 | — | 559 | 8.6 | % | |||||||||||||
Total earned premiums | $ | 9,574 | $ | 306 | $ | 2,609 | $ | 7,271 | 4.2 | % | |||||||||
2012 Earned Premiums | |||||||||||||||||||
Property and casualty | $ | 8,354 | $ | 197 | $ | 2,229 | $ | 6,322 | 3.1 | % | |||||||||
Accident and health | 512 | 47 | — | 559 | 8.4 | % | |||||||||||||
Total earned premiums | $ | 8,866 | $ | 244 | $ | 2,229 | $ | 6,881 | 3.5 | % | |||||||||
Components of Written Premiums | |||||||||||||||||||
(In millions) | Direct | Assumed | Ceded | Net | Assumed/ | ||||||||||||||
Net % | |||||||||||||||||||
2014 Written Premiums | |||||||||||||||||||
Property and casualty | $ | 9,283 | $ | 276 | $ | 3,024 | $ | 6,535 | 4.2 | % | |||||||||
Accident and health | 504 | 49 | — | 553 | 8.9 | % | |||||||||||||
Total written premiums | $ | 9,787 | $ | 325 | $ | 3,024 | $ | 7,088 | 4.6 | % | |||||||||
2013 Written Premiums | |||||||||||||||||||
Property and casualty | $ | 9,103 | $ | 249 | $ | 2,556 | $ | 6,796 | 3.7 | % | |||||||||
Accident and health | 505 | 47 | — | 552 | 8.5 | % | |||||||||||||
Total written premiums | $ | 9,608 | $ | 296 | $ | 2,556 | $ | 7,348 | 4 | % | |||||||||
2012 Written Premiums | |||||||||||||||||||
Property and casualty | $ | 8,467 | $ | 169 | $ | 2,225 | $ | 6,411 | 2.6 | % | |||||||||
Accident and health | 506 | 47 | — | 553 | 8.5 | % | |||||||||||||
Total written premiums | $ | 8,973 | $ | 216 | $ | 2,225 | $ | 6,964 | 3.1 | % | |||||||||
Included in the direct and ceded earned premiums for the years ended December 31, 2014, 2013 and 2012 are $2,643 million, $2,156 million and $1,794 million related to property business that is 100% reinsured under a significant third-party captive program. The third-party captives that participate in this program are affiliated with the non-insurance company policyholders, therefore this program provides a means for the policyholders to self-insure this property risk. The Company receives and retains a ceding commission. | |||||||||||||||||||
Accident and health premiums are from long duration contracts; property and casualty premiums are from short duration contracts. | |||||||||||||||||||
Insurance claims and policyholders' benefits reported on the Consolidated Statements of Operations are net of reinsurance recoveries of $1,379 million, $1,450 million and $1,443 million for the years ended December 31, 2014, 2013 and 2012, including $1,458 million, $712 million and $814 million related to the significant third-party captive program discussed above. Reinsurance recoveries in 2014 were unfavorably affected by the commutation of a workers’ compensation reinsurance pool. |
Debt
Debt | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Debt Disclosure [Text Block] | Note I. Debt | |||||||
Debt is composed of the following obligations. | ||||||||
31-Dec | ||||||||
(In millions) | 2014 | 2013 | ||||||
Short term debt: | ||||||||
Senior notes of CNAF, 5.850%, face amount of $549, due December 15, 2014 | $ | — | $ | 549 | ||||
Long term debt: | ||||||||
Senior notes of CNAF: | ||||||||
6.500%, face amount of $350, due August 15, 2016 | 349 | 349 | ||||||
6.950%, face amount of $150, due January 15, 2018 | 150 | 149 | ||||||
7.350%, face amount of $350, due November 15, 2019 | 348 | 348 | ||||||
5.875%, face amount of $500, due August 15, 2020 | 497 | 497 | ||||||
5.750%, face amount of $400, due August 15, 2021 | 397 | 397 | ||||||
3.950%, face amount of $550, due May 15, 2024 | 547 | — | ||||||
Debenture of CNAF, 7.250%, face amount of $243, due November 15, 2023 | 241 | 241 | ||||||
Subordinated variable rate debt of Hardy, face amount of $30, due September 15, 2036 | 30 | 30 | ||||||
Total long term debt | 2,559 | 2,011 | ||||||
Total debt | $ | 2,559 | $ | 2,560 | ||||
CCC is a member of the Federal Home Loan Bank of Chicago (FHLBC). FHLBC membership provides participants with access to additional sources of liquidity through various programs and services. As a requirement of membership in the FHLBC, CCC held $16 million of FHLBC stock as of December 31, 2014 and 2013 giving it access to approximately $330 million of additional liquidity. As of December 31, 2014 and 2013, CCC had no outstanding borrowings from the FHLBC. | ||||||||
The Company has a four-year $250 million senior unsecured revolving credit facility with a syndicate of banks which is intended to be used for general corporate purposes. At the Company's election, the commitments under the credit agreement may be increased from time to time up to an additional aggregate amount of $100 million. Under the credit agreement, the Company is required to pay a facility fee which would adjust automatically in the event of a change in the Company's financial ratings. The credit agreement includes several covenants, including maintenance of a minimum consolidated net worth and a specified ratio of consolidated indebtedness to consolidated total capitalization. The minimum consolidated net worth, as defined as of December 31, 2014, was $8.6 billion. As of December 31, 2014 and 2013, we had no outstanding borrowings under the credit agreement. The credit facility expires in 2016. | ||||||||
The Company's debt obligations contain customary covenants for investment grade issuers. The Company was in compliance with all covenants as of and for the years ended December 31, 2014 and 2013. | ||||||||
The combined aggregate maturities for debt at December 31, 2014 are presented in the following table. | ||||||||
Maturity of Debt | ||||||||
(In millions) | ||||||||
2015 | $ | — | ||||||
2016 | 350 | |||||||
2017 | — | |||||||
2018 | 150 | |||||||
2019 | 350 | |||||||
Thereafter | 1,723 | |||||||
Less discount | (14 | ) | ||||||
Total | $ | 2,559 | ||||||
Benefit_Plans
Benefit Plans | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||
Benefit Plans | Note J. Benefit Plans | |||||||||||||||||||||||
Pension and Postretirement Health Care Benefit Plans | ||||||||||||||||||||||||
CNA sponsors noncontributory defined benefit pension plans, primarily through the CNA Retirement Plan, covering certain eligible employees. These plans are closed to new entrants. | ||||||||||||||||||||||||
Effective January 1, 2000, the CNA Retirement Plan was closed to new participants. Existing participants at that time were given a choice to either continue to accrue benefits under the CNA Retirement Plan or to cease accruals at December 31, 1999. Employees who chose to continue to accrue benefits under the plan will receive a benefit based on their years of credited service and highest 60 months of compensation at termination. Compensation is defined as regular salary, eligible bonuses and overtime. Employees who elected to cease accruals at December 31, 1999 received the present value of their accrued benefit in an accrued pension account that is credited with interest based on the annual rate of interest on 30-year Treasury securities. These employees also receive certain enhanced employer contributions in the CNA Savings and Capital Accumulation Plan. | ||||||||||||||||||||||||
CNA's funding policy for defined benefit pension plans is to make contributions in accordance with applicable governmental regulatory requirements with consideration of the funded status of the plans. | ||||||||||||||||||||||||
During 2014, the CNA Retirement Plan offered a limited-time lump sum settlement payment opportunity to the majority of the terminated vested participants of the plan. The lump sum settlements reduce the Company’s risk and volatility related to funding the CNA Retirement Plan. The number of participants that elected to accept the lump sum opportunity was approximately 20% of the then total participants in the plan. The settlement payments of $253 million were made from CNA Retirement Plan assets. The $84 million settlement charge recorded by the Company in the fourth quarter of 2014 represents recognition of a portion of the unrecognized actuarial losses previously reflected in AOCI. This settlement charge is included in Other operating expenses within the Corporate & Other Non-Core segment. | ||||||||||||||||||||||||
CNA provides certain health care benefits to eligible retired employees, their covered dependents and their beneficiaries primarily through the CNA Health and Group Benefits Program. These postretirement benefits have largely been eliminated for active employees. | ||||||||||||||||||||||||
In the second quarter of 2014, the Company eliminated certain postretirement medical benefits associated with the CNA Health and Group Benefits Program. This change was a negative plan amendment which resulted in an $86 million curtailment gain reported in Other operating expenses within the Corporate & Other Non-Core segment. In connection with the plan amendment, the Company remeasured the plan benefit obligation which resulted in a decrease in the discount rate used to determine the benefit obligation from 3.60% to 3.10%. | ||||||||||||||||||||||||
The following table provides a reconciliation of benefit obligations and plan assets for the years ended December 31, 2014 and 2013. | ||||||||||||||||||||||||
Funded Status | ||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Benefit obligation at January 1 | $ | 2,943 | $ | 3,271 | $ | 40 | $ | 47 | ||||||||||||||||
Changes in benefit obligation: | ||||||||||||||||||||||||
Service cost | 9 | 12 | — | 1 | ||||||||||||||||||||
Interest cost | 132 | 121 | 1 | 1 | ||||||||||||||||||||
Participants' contributions | — | — | 5 | 5 | ||||||||||||||||||||
Plan amendments | (3 | ) | — | (7 | ) | — | ||||||||||||||||||
Actuarial (gain) loss | 367 | (289 | ) | 1 | (3 | ) | ||||||||||||||||||
Benefits paid | (165 | ) | (165 | ) | (11 | ) | (12 | ) | ||||||||||||||||
Settlements | (257 | ) | (8 | ) | — | — | ||||||||||||||||||
Foreign currency translation and other | (7 | ) | 1 | — | 1 | |||||||||||||||||||
Benefit obligation at December 31 | 3,019 | 2,943 | 29 | 40 | ||||||||||||||||||||
Fair value of plan assets at January 1 | 2,656 | 2,425 | — | — | ||||||||||||||||||||
Change in plan assets: | ||||||||||||||||||||||||
Actual return on plan assets | 216 | 311 | — | — | ||||||||||||||||||||
Company contributions | 12 | 92 | 6 | 7 | ||||||||||||||||||||
Participants' contributions | — | — | 5 | 5 | ||||||||||||||||||||
Benefits paid | (165 | ) | (165 | ) | (11 | ) | (12 | ) | ||||||||||||||||
Settlements | (257 | ) | (8 | ) | — | — | ||||||||||||||||||
Foreign currency translation and other | (6 | ) | 1 | — | — | |||||||||||||||||||
Fair value of plan assets at December 31 | 2,456 | 2,656 | — | — | ||||||||||||||||||||
Funded status | $ | (563 | ) | $ | (287 | ) | $ | (29 | ) | $ | (40 | ) | ||||||||||||
Amounts recognized on the Consolidated Balance Sheets at December 31: | ||||||||||||||||||||||||
Other assets | $ | 9 | $ | 9 | $ | — | $ | — | ||||||||||||||||
Other liabilities | (572 | ) | (296 | ) | (29 | ) | (40 | ) | ||||||||||||||||
Net amount recognized | $ | (563 | ) | $ | (287 | ) | $ | (29 | ) | $ | (40 | ) | ||||||||||||
Amounts recognized in Accumulated other comprehensive income, not yet recognized in net periodic cost (benefit): | ||||||||||||||||||||||||
Prior service credit | $ | — | $ | — | $ | (9 | ) | $ | (98 | ) | ||||||||||||||
Net actuarial loss | 974 | 745 | 8 | 8 | ||||||||||||||||||||
Net amount recognized | $ | 974 | $ | 745 | $ | (1 | ) | $ | (90 | ) | ||||||||||||||
The accumulated benefit obligation for all defined benefit pension plans was $2,962 million and $2,889 million at December 31, 2014 and 2013. | ||||||||||||||||||||||||
The components of net periodic cost (benefit) are presented in the following table. | ||||||||||||||||||||||||
Net Periodic Cost (Benefit) | ||||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Pension cost (benefit) | ||||||||||||||||||||||||
Service cost | $ | 9 | $ | 12 | $ | 12 | ||||||||||||||||||
Interest cost on projected benefit obligation | 132 | 121 | 135 | |||||||||||||||||||||
Expected return on plan assets | (191 | ) | (181 | ) | (171 | ) | ||||||||||||||||||
Amortization of net actuarial loss | 25 | 47 | 39 | |||||||||||||||||||||
Settlement loss | 84 | 3 | — | |||||||||||||||||||||
Net periodic pension cost (benefit) | $ | 59 | $ | 2 | $ | 15 | ||||||||||||||||||
Postretirement cost (benefit) | ||||||||||||||||||||||||
Service cost | $ | — | $ | 1 | $ | — | ||||||||||||||||||
Interest cost on projected benefit obligation | 1 | 1 | 2 | |||||||||||||||||||||
Amortization of prior service credit | (10 | ) | (18 | ) | (18 | ) | ||||||||||||||||||
Amortization of net actuarial loss | 1 | 2 | 1 | |||||||||||||||||||||
Curtailment gain | (86 | ) | — | — | ||||||||||||||||||||
Net periodic postretirement cost (benefit) | $ | (94 | ) | $ | (14 | ) | $ | (15 | ) | |||||||||||||||
The amounts recognized in Other comprehensive income are presented in the following table. | ||||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Pension and postretirement benefits | ||||||||||||||||||||||||
Amounts arising during the period | $ | (337 | ) | $ | 422 | $ | (195 | ) | ||||||||||||||||
Curtailment and other | (81 | ) | — | — | ||||||||||||||||||||
Settlement | 84 | — | — | |||||||||||||||||||||
Reclassification adjustment relating to prior service credit | (10 | ) | (18 | ) | (18 | ) | ||||||||||||||||||
Reclassification adjustment relating to actuarial loss | 26 | 49 | 40 | |||||||||||||||||||||
Total increase (decrease) in Other comprehensive income | $ | (318 | ) | $ | 453 | $ | (173 | ) | ||||||||||||||||
The table below presents the estimated amounts to be recognized from AOCI into net periodic cost (benefit) during 2015. | ||||||||||||||||||||||||
(In millions) | Pension | Postretirement Benefits | ||||||||||||||||||||||
Benefits | ||||||||||||||||||||||||
Amortization of prior service credit | $ | — | $ | (2 | ) | |||||||||||||||||||
Amortization of net actuarial loss | 38 | 1 | ||||||||||||||||||||||
Total estimated amounts to be recognized | $ | 38 | $ | (1 | ) | |||||||||||||||||||
Actuarial assumptions used for the CNA Retirement Plan and CNA Health and Group Benefits Program to determine benefit obligations are set forth in the following table. | ||||||||||||||||||||||||
Actuarial Assumptions for Benefit Obligations | ||||||||||||||||||||||||
31-Dec | 2014 | 2013 | ||||||||||||||||||||||
Pension benefits | ||||||||||||||||||||||||
Discount rate | 3.85 | % | 4.65 | % | ||||||||||||||||||||
Expected long term rate of return | 7.5 | 7.5 | ||||||||||||||||||||||
Rate of compensation increases | 3.92 | 3.99 | ||||||||||||||||||||||
Postretirement benefits | ||||||||||||||||||||||||
Discount rate | 2.5 | % | 3.6 | % | ||||||||||||||||||||
Actuarial assumptions used for the CNA Retirement Plan and CNA Health and Group Benefits Program to determine net cost or benefit are set forth in the following table. | ||||||||||||||||||||||||
Actuarial Assumptions for Net Cost or Benefit | ||||||||||||||||||||||||
Years ended December 31 | 2014 | 2013 | 2012 | |||||||||||||||||||||
Pension benefits | ||||||||||||||||||||||||
Discount rate | 4.65 | % | 3.8 | % | 4.6 | % | ||||||||||||||||||
Expected long term rate of return | 7.5 | 7.75 | 8 | |||||||||||||||||||||
Rate of compensation increases | 3.99 | 4.066 | 4.125 | |||||||||||||||||||||
Postretirement benefits | ||||||||||||||||||||||||
Discount rate | 3.600%/3.100% | 2.8 | % | 3.75 | % | |||||||||||||||||||
In determining the expected long term rate of return on plan assets assumption for the CNA Retirement Plan, CNA considered the historical performance of the benefit plan investment portfolio as well as long term market return expectations based on the investment mix of the portfolio. | ||||||||||||||||||||||||
The CNA Health and Group Benefits Program has limited its share of the health care trend rate to a cost-of-living adjustment of 4% per year. For all participants, the employer subsidy on health care costs will not increase by more than 4% per year. As a result, the assumed health care cost trend rate used in measuring the accumulated postretirement benefit obligation for the CNA Health and Group Benefits Program was 4% per year in 2014, 2013 and 2012. | ||||||||||||||||||||||||
CNA employs a total return approach whereby a mix of equity, limited partnerships and fixed maturity securities are used to maximize the long term return of retirement plan assets for a prudent level of risk and to manage cash flows according to plan requirements. The target allocation of plan assets is 40% to 60% invested in equity securities and limited partnerships, with the remainder primarily invested in fixed maturity securities. The intent of this strategy is to minimize the Company's expense related to funding the plan by generating investment returns that exceed the growth of the plan liabilities over the long run. Risk tolerance is established after careful consideration of the plan liabilities, plan funded status and corporate financial conditions. In addition, alternative investments, including limited partnerships, are used to enhance risk adjusted long term returns while improving portfolio diversification. At December 31, 2014, the plan had committed approximately $107 million to future capital calls from various third-party limited partnership investments in exchange for an ownership interest in the related partnerships. Derivatives may be used to gain market exposure in an efficient and timely manner. Investment risk is measured and monitored on an ongoing basis through annual liability measurements, periodic asset/liability studies and quarterly investment portfolio reviews. | ||||||||||||||||||||||||
Pension plan assets measured at fair value on a recurring basis as well as cash are summarized below. | ||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | Total Assets | ||||||||||||||||||||
at Fair Value | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||
Corporate and other bonds | $ | — | $ | 463 | $ | 15 | $ | 478 | ||||||||||||||||
States, municipalities and political subdivisions | — | 80 | — | 80 | ||||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||
Residential mortgage-backed | — | 123 | — | 123 | ||||||||||||||||||||
Commercial mortgage-backed | — | 75 | — | 75 | ||||||||||||||||||||
Other asset-backed | — | 12 | — | 12 | ||||||||||||||||||||
Total asset-backed | — | 210 | — | 210 | ||||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 25 | — | — | 25 | ||||||||||||||||||||
Total fixed maturity securities | 25 | 753 | 15 | 793 | ||||||||||||||||||||
Equity securities | 389 | 118 | — | 507 | ||||||||||||||||||||
Derivative financial instruments | 1 | — | — | 1 | ||||||||||||||||||||
Short term investments | 33 | 101 | — | 134 | ||||||||||||||||||||
Limited partnerships: | ||||||||||||||||||||||||
Hedge funds | — | 562 | 303 | 865 | ||||||||||||||||||||
Private equity | — | — | 113 | 113 | ||||||||||||||||||||
Total limited partnerships | — | 562 | 416 | 978 | ||||||||||||||||||||
Other assets | — | 30 | — | 30 | ||||||||||||||||||||
Cash | 13 | — | — | 13 | ||||||||||||||||||||
Total assets | $ | 461 | $ | 1,564 | $ | 431 | $ | 2,456 | ||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | Total Assets | ||||||||||||||||||||
at Fair Value | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||
Corporate and other bonds | $ | — | $ | 505 | $ | 15 | $ | 520 | ||||||||||||||||
States, municipalities and political subdivisions | — | 73 | — | 73 | ||||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||
Residential mortgage-backed | — | 130 | — | 130 | ||||||||||||||||||||
Commercial mortgage-backed | — | 106 | — | 106 | ||||||||||||||||||||
Other asset-backed | — | 12 | — | 12 | ||||||||||||||||||||
Total asset-backed | — | 248 | — | 248 | ||||||||||||||||||||
Total fixed maturity securities | — | 826 | 15 | 841 | ||||||||||||||||||||
Equity securities | 480 | 117 | 8 | 605 | ||||||||||||||||||||
Derivative financial instruments | 2 | — | — | 2 | ||||||||||||||||||||
Short term investments | 45 | 49 | — | 94 | ||||||||||||||||||||
Limited partnerships: | ||||||||||||||||||||||||
Hedge funds | — | 647 | 322 | 969 | ||||||||||||||||||||
Private equity | — | — | 114 | 114 | ||||||||||||||||||||
Total limited partnerships | — | 647 | 436 | 1,083 | ||||||||||||||||||||
Other assets | — | 31 | — | 31 | ||||||||||||||||||||
Total assets | $ | 527 | $ | 1,670 | $ | 459 | $ | 2,656 | ||||||||||||||||
The limited partnership investments are recorded at fair value, which represents the plan's share of net asset value of each partnership, as determined by the General Partner. Level 2 includes limited partnership investments which can be redeemed at net asset value in 90 days or less. Level 3 includes limited partnership investments with withdrawal provisions greater than 90 days, or for which withdrawals are not permitted until the termination of the partnership. Within hedge fund strategies, approximately 57% are equity related, 37% pursue a multi-strategy approach and 6% are focused on distressed investments at December 31, 2014. | ||||||||||||||||||||||||
For a discussion of the fair value levels and the valuation methodologies used to measure fixed maturity securities, equities, derivatives and short term investments, see Note D to the Consolidated Financial Statements. | ||||||||||||||||||||||||
The tables below present a reconciliation for all pension plan assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2014 and 2013. | ||||||||||||||||||||||||
Level 3 | Balance at January 1, 2014 | Actual return on assets still held at December 31, 2014 | Actual return on assets sold during the year ended December 31, 2014 | Purchases, sales and settlements | Net transfers into (out of) Level 3 | Balance at December 31, 2014 | ||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||
Corporate and other bonds | $ | 15 | $ | — | $ | — | $ | — | $ | — | $ | 15 | ||||||||||||
Equity securities | 8 | — | — | (8 | ) | — | — | |||||||||||||||||
Limited partnerships: | ||||||||||||||||||||||||
Hedge funds | 322 | 19 | — | (38 | ) | — | 303 | |||||||||||||||||
Private equity | 114 | 19 | — | (20 | ) | — | 113 | |||||||||||||||||
Total limited partnerships | 436 | 38 | — | (58 | ) | — | 416 | |||||||||||||||||
Total | $ | 459 | $ | 38 | $ | — | $ | (66 | ) | $ | — | $ | 431 | |||||||||||
Level 3 | Balance at January 1, 2013 | Actual return on assets still held at December 31, 2013 | Actual return on assets sold during the year ended December 31, 2013 | Purchases, sales and settlements | Net transfers into (out of) Level 3 | Balance at December 31, 2013 | ||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||
Corporate and other bonds | $ | 11 | $ | (1 | ) | $ | — | $ | 5 | $ | — | $ | 15 | |||||||||||
Equity securities | 5 | 3 | — | — | — | 8 | ||||||||||||||||||
Limited partnerships: | ||||||||||||||||||||||||
Hedge funds | 359 | 56 | — | (77 | ) | (16 | ) | 322 | ||||||||||||||||
Private equity | 62 | — | — | 52 | — | 114 | ||||||||||||||||||
Total limited partnerships | 421 | 56 | — | (25 | ) | (16 | ) | 436 | ||||||||||||||||
Investment contracts with insurance company | 10 | — | — | (10 | ) | — | — | |||||||||||||||||
Total | $ | 447 | $ | 58 | $ | — | $ | (30 | ) | $ | (16 | ) | $ | 459 | ||||||||||
The table below presents the estimated future minimum benefit payments to participants at December 31, 2014. | ||||||||||||||||||||||||
Estimated Future Minimum Benefit Payments to Participants | ||||||||||||||||||||||||
(In millions) | Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||
2015 | $ | 179 | $ | 5 | ||||||||||||||||||||
2016 | 181 | 4 | ||||||||||||||||||||||
2017 | 180 | 4 | ||||||||||||||||||||||
2018 | 184 | 4 | ||||||||||||||||||||||
2019 | 185 | 3 | ||||||||||||||||||||||
2020-2024 | 936 | 9 | ||||||||||||||||||||||
In 2015, CNA expects to contribute $14 million to its pension plans and $5 million to its postretirement health care benefit plans. | ||||||||||||||||||||||||
Savings Plans | ||||||||||||||||||||||||
CNA sponsors savings plans, which are generally contributory plans that allow most employees to contribute a maximum of 50% of their eligible compensation, subject to certain limitations prescribed by the IRS. The Company contributes matching amounts to participants, amounting to 70% of the first 6% (35% of the first 6% in the first year of employment) of eligible compensation contributed by the employee. Employees vest in these contributions ratably over five years. | ||||||||||||||||||||||||
As noted above, during 2000, employees were required to make a choice regarding their continued participation in the CNA Retirement Plan. Employees who elected to forgo earning additional benefits in the CNA Retirement Plan and all employees hired on or after January 1, 2000 receive a Company contribution of 3% or 5% of their eligible compensation, depending on their age. In addition, these employees are eligible to receive additional discretionary contributions of up to 2% of eligible compensation and an additional Company match of up to 80% of the first 6% of eligible compensation contributed by the employee. These additional contributions are made at the discretion of management and are contributed to participant accounts in the first quarter of the year following management's determination of the discretionary amounts. Employees vest in these contributions ratably over five years. | ||||||||||||||||||||||||
Benefit expense for the Company's savings plans was $69 million, $71 million and $70 million for the years ended December 31, 2014, 2013 and 2012. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||
Stock-Based Compensation [Text Block] | Note K. Stock-Based Compensation | ||||||
The CNAF Incentive Compensation Plan (the Plan), as amended and restated on January 1, 2010, authorizes the grant of stock-based compensation to certain management personnel for up to 6 million shares of CNAF's common stock. The Plan currently provides for awards of stock options, stock appreciation rights (SARs), restricted shares, performance-based restricted share units (RSUs) and performance share units. The number of shares available for the granting of stock-based compensation under the Plan as of December 31, 2014 was approximately 1.5 million. | |||||||
The Company recorded stock-based compensation expense related to the Plan of $11 million, $10 million and $9 million for the years ended December 31, 2014, 2013 and 2012. The related income tax benefit recognized was $4 million, $3 million and $3 million for the years ended December 31, 2014, 2013, and 2012. The compensation cost related to non-vested awards not yet recognized was $13 million, and the weighted average period over which it is expected to be recognized is 1.7 years at December 31, 2014. | |||||||
Equity based compensation that is not fully vested prior to termination is generally forfeited upon termination, except as otherwise provided by contractual obligations. In addition, any such compensation that vested prior to termination is generally canceled immediately, except in cases of retirement, death or disability, and as otherwise provided by contractual obligations. | |||||||
Share Awards | |||||||
The fair value of share awards is based on the market value of the Company's common stock as of the date of grant. Share awards currently granted under the Plan include restricted shares, performance-based RSUs and performance share units. Generally, restricted shares vest ratably over a four-year service period following the date of grant. Performance-based RSUs generally become payable within a range of 0% to 100% of the number of shares initially granted based upon the attainment of specific annual performance goals and vest ratably over a four-year service period following the date of grant. Performance share units become payable within a range of 0% to 200% of the number of shares initially granted based upon the attainment of specific performance goals achieved over a three year period. | |||||||
The following table presents activity for non-vested restricted shares, performance-based RSUs and performance share units under the Plan in 2014. | |||||||
Number of Awards | Weighted-Average Grant Date Fair Value | ||||||
Balance at January 1, 2014 | 847,674 | $ | 29.61 | ||||
Awards granted | 261,273 | 41.01 | |||||
Awards vested | (156,332 | ) | 28.42 | ||||
Awards forfeited, canceled or expired | (91,002 | ) | 32.09 | ||||
Performance-based adjustment | 52,568 | 28.5 | |||||
Balance at December 31, 2014 | 914,181 | $ | 32.76 | ||||
Stock Options and SARs | |||||||
The exercise price of all stock options and SARs granted is based on the market value of the Company's common stock as of the date of grant. Stock options and SARs generally vest ratably over a four-year service period following date of grant and have a maximum term of ten years. | |||||||
The fair value of granted stock options and SARs was estimated at the grant date using the Black-Scholes option-pricing model. The Black-Scholes model incorporates a risk free rate of return and various assumptions regarding the underlying common stock and the expected life of the securities granted. Different interest rates and assumptions were used for each grant, as appropriate based on date of grant. | |||||||
There were no stock options or SARs granted for the years ended December 31, 2014 and 2013. For the year ended December 31, 2012 there were 10 thousand awards granted. As of December 31, 2014, there were approximately 1 million awards outstanding, fully vested and expected to vest and exercisable. The fair value of awards vested was $1 million for the years ended December 31, 2014, 2013 and 2012. |
Other_Intangible_Assets
Other Intangible Assets | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Intangible Assets, Gross (Excluding Goodwill) [Abstract] | ||||||||||||||||||
Other Intangible Assets | Note L. Other Intangible Assets | |||||||||||||||||
Other intangible assets are presented in the following table. | ||||||||||||||||||
31-Dec | 2014 | 2013 | ||||||||||||||||
(In millions) | Economic Useful Life | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | |||||||||||||
Finite-lived intangible assets: | ||||||||||||||||||
Value of business acquired | 1 - 4 years | $ | 60 | $ | 61 | $ | 64 | $ | 63 | |||||||||
Trade name | 8 years | 8 | 3 | 8 | 2 | |||||||||||||
Distribution channel | 15 years | 12 | 2 | 13 | 1 | |||||||||||||
Total finite-lived intangible assets | 80 | 66 | 85 | 66 | ||||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||||||
Syndicate capacity | 55 | 58 | ||||||||||||||||
Agency force | 16 | 16 | ||||||||||||||||
Total indefinite-lived intangible assets | 71 | 74 | ||||||||||||||||
Total other intangible assets | $ | 151 | $ | 66 | $ | 159 | $ | 66 | ||||||||||
The Company's other intangible assets primarily relate to the purchase of Hardy. For the years ended December 31, 2014, 2013 and 2012 amortization expense of $2 million, $15 million and $33 million was included in Amortization of deferred acquisition costs and $1 million, $5 million and $10 million was included in Other operating expenses in the Statement of Operations for the International segment. The gross carrying amounts and accumulated amortization in the table above may change from period to period as a result of foreign currency translation. Estimated future amortization expense for other intangible assets is $1 million in 2015 and $2 million in years 2016, 2017, 2018 and 2019. |
Operating_Leases_Commitments_a
Operating Leases, Commitments and Contingencies, and Guarantees | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Operating Leases, Commitments and Contingencies, and Guarantees [Abstract] | ||||||||
Operating Leases, Commitments and Contingencies, and Guarantees | Note M. Operating Leases, Commitments and Contingencies and Guarantees | |||||||
Operating Leases | ||||||||
The Company occupies office facilities under lease agreements that expire at various dates. In addition, data processing, office and transportation equipment is leased under agreements that expire at various dates. Most leases contain renewal options that provide for rent increases based on prevailing market conditions. Lease expenses for the years ended December 31, 2014, 2013 and 2012 were $55 million, $46 million and $52 million. Sublease revenues for the years ended December 31, 2014, 2013 and 2012 were $1 million, $3 million and $2 million. | ||||||||
The table below presents the future minimum lease payments to be made under non-cancelable operating leases along with future minimum sublease receipts to be received on owned and leased properties at December 31, 2014. | ||||||||
Future Minimum Lease Payments and Sublease Receipts | ||||||||
(In millions) | Future Minimum Lease Payments | Future Minimum Sublease Receipts | ||||||
2015 | $ | 36 | $ | — | ||||
2016 | 35 | — | ||||||
2017 | 30 | — | ||||||
2018 | 25 | — | ||||||
2019 | 21 | 1 | ||||||
Thereafter | 98 | 1 | ||||||
Total | $ | 245 | $ | 2 | ||||
Commitments and Contingencies | ||||||||
The Company holds an investment in a real estate joint venture. In the normal course of business, the Company, on a joint and several basis with other unrelated insurance company shareholders, has committed to continue funding the operating deficits of this joint venture. Additionally, the Company and the other unrelated shareholders, on a joint and several basis, have guaranteed an operating lease for an office building, which expires in 2016. The guarantee of the operating lease is a parallel guarantee to the commitment to fund operating deficits; consequently, the separate guarantee to the lessor is not expected to be triggered as long as the joint venture continues to be funded by its shareholders which provide liquidity to make its annual lease payments. | ||||||||
In the event that the other parties to the joint venture are unable to meet their commitments in funding the operations of this joint venture, the Company would be required to assume the obligation for the entire office building operating lease. The Company does not believe it is likely that it will be required to do so. However, the maximum potential future lease payments and other related costs at December 31, 2014 that the Company could be required to pay under this guarantee, in excess of amounts already recorded, were approximately $50 million. If the Company were required to assume the entire lease obligation, the Company would have the right to pursue reimbursement from the other shareholders and the right to all sublease revenues. | ||||||||
Guarantees | ||||||||
As of December 31, 2014 and December 31, 2013, the Company had recorded liabilities of approximately $5 million and $7 million related to guarantee and indemnification agreements and management believes that it is not likely that any future indemnity claims will be significantly greater than the amounts recorded. | ||||||||
In the course of selling business entities and assets to third parties, the Company agreed to guarantee the performance of certain obligations of a previously owned subsidiary and to indemnify purchasers for losses arising out of breaches of representation and warranties with respect to the business entities or assets being sold, including, in certain cases, losses arising from undisclosed liabilities or certain named litigation. Such guarantee and indemnification agreements may include provisions that survive indefinitely. As of December 31, 2014, the aggregate amount of quantifiable guarantee and indemnification agreements in effect for sales of business entities, assets and third-party loans was $375 million and $324 million. Should the Company be required to make payments under the guarantee, it would have the right to seek reimbursement in certain cases from an affiliate of a previously owned subsidiary. | ||||||||
In addition, the Company has agreed to provide indemnification to third-party purchasers for certain losses associated with sold business entities or assets that are not limited by a contractual monetary amount. As of December 31, 2014, the Company had outstanding unlimited indemnifications in connection with the sales of certain of its business entities or assets that included tax liabilities arising prior to a purchaser's ownership of an entity or asset, defects in title at the time of sale, employee claims arising prior to closing and in some cases losses arising from certain litigation and undisclosed liabilities. Certain provisions of the indemnification agreements survive indefinitely while others survive until the applicable statutes of limitation expire or until the agreed-upon contract terms expire. | ||||||||
In the normal course of business, the Company also provided guarantees, if the primary obligor fails to perform, to holders of structured settlement annuities provided by a previously owned subsidiary, which are estimated to mature through 2120. The potential amount of future payments the Company could be required to pay under these guarantees was approximately $1.9 billion at December 31, 2014. The Company does not believe a payable is likely under these guarantees, as the Company is the beneficiary of a trust that must be maintained at a level that approximates the discounted reserves for these annuities. |
Stockholders_Equity_and_Statut
Stockholders' Equity and Statutory Accounting Practices | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Stockholders' Equity and Statutory Accounting Practices [Abstract] | ||||||||||||||||||||
Stockholders' Equity And Statutory Accounting Practices | Note N. Stockholders’ Equity and Statutory Accounting Practices | |||||||||||||||||||
Common Stock Dividends | ||||||||||||||||||||
There are no restrictions on the retained earnings or net income of CNAF with regard to payment of dividends to its stockholders. However, given the holding company nature of CNAF, its ability to pay a dividend is significantly dependent on the receipt of dividends from its subsidiaries, particularly CCC, which directly or indirectly owns all significant subsidiaries. See the Statutory Accounting Practices section below for a discussion of the regulatory restrictions on CCC's availability to pay dividends. | ||||||||||||||||||||
CNAF's ability to pay dividends is indirectly limited by the minimum consolidated net worth covenant in the Company's line of credit agreement. See Note I to the Consolidated Financial Statements for further discussion of the Company's debt obligations. | ||||||||||||||||||||
Statutory Accounting Practices | ||||||||||||||||||||
CNAF’s insurance subsidiaries are domiciled in various jurisdictions. These subsidiaries prepare statutory financial statements in accordance with accounting practices prescribed or permitted by the respective jurisdictions’ insurance regulators. Domestic prescribed statutory accounting practices are set forth in a variety of publications of the National Association of Insurance Commissioners (NAIC) as well as state laws, regulations and general administrative rules. These statutory accounting principles vary in certain respects from GAAP. In converting from statutory accounting principles to GAAP, the more significant adjustments include deferral of policy acquisition costs and the inclusion of net unrealized holding gains or losses in stockholders’ equity relating to certain fixed maturity securities. | ||||||||||||||||||||
The payment of dividends by CNAF's insurance subsidiaries without prior approval of the insurance department of each subsidiary’s domiciliary jurisdiction is generally limited by formula. Dividends in excess of these amounts are subject to prior approval by the respective insurance regulator. | ||||||||||||||||||||
Dividends from CCC are subject to the insurance holding company laws of the State of Illinois, the domiciliary state of CCC. Under these laws, ordinary dividends, or dividends that do not require prior approval by the Department are determined based on statutory net income and surplus as well as timing of dividends paid in the preceding twelve months. Ordinary dividends may only be paid from earned surplus, which is calculated by removing unrealized gains from unassigned surplus. As of December 31, 2014, CCC is in a positive earned surplus position, enabling CCC to pay approximately $466 million of dividend payments during 2015 that would not be subject to the Department’s prior approval. The actual level of dividends paid in any year is determined after an assessment of available dividend capacity, holding company liquidity and cash needs as well as the impact the dividends will have on the statutory surplus of the applicable insurance company. | ||||||||||||||||||||
Combined statutory capital and surplus and net income (loss), determined in accordance with accounting practices prescribed or permitted by insurance and/or other regulatory authorities for the Combined Continental Casualty Companies and the life company, were as follows. | ||||||||||||||||||||
Statutory Information | ||||||||||||||||||||
Statutory Capital and Surplus | Statutory Net Income (Loss) | |||||||||||||||||||
31-Dec | Years ended December 31 | |||||||||||||||||||
(In millions) | 2014 (a) | 2013 (b) | 2014 (a) | 2013 | 2012 | |||||||||||||||
Combined Continental Casualty Companies | $ | 11,155 | $ | 11,137 | $ | 914 | $ | 913 | $ | 391 | ||||||||||
Life company | 597 | 37 | 48 | 44 | ||||||||||||||||
________________ | ||||||||||||||||||||
(a) | Information derived from the statutory-basis financial statements to be filed with insurance regulators. | |||||||||||||||||||
(b) | Represents the combined statutory surplus of CCC and its subsidiaries, including the life company. | |||||||||||||||||||
CNAF’s domestic insurance subsidiaries are subject to risk-based capital (RBC) requirements. RBC is a method developed by the NAIC to determine the minimum amount of statutory capital appropriate for an insurance company to support its overall business operations in consideration of its size and risk profile. The formula for determining the amount of RBC specifies various factors, weighted based on the perceived degree of risk, which are applied to certain financial balances and financial activity. The adequacy of a company's actual capital is evaluated by a comparison to the RBC results, as determined by the formula. Companies below minimum RBC requirements are classified within certain levels, each of which requires specified corrective action. | ||||||||||||||||||||
The statutory capital and surplus presented above for CCC was approximately 270% and 265% of company action level RBC at December 31, 2014 and 2013. Company action level RBC is the level of RBC which triggers a heightened level of regulatory supervision. The statutory capital and surplus of the Company's foreign insurance subsidiaries, which is not significant to the overall statutory capital and surplus, also met or exceeded their respective regulatory and other capital requirements. | ||||||||||||||||||||
The Hardy entities are not owned by CCC, therefore their regulatory capital is not included in the Statutory Capital and Surplus of the Combined Continental Casualty Companies presented in the table above. At December 31, 2014, Hardy's portion of Syndicate 382's capital requirement included $105 million of capital provided by CCC which is included in Combined Continental Casualty Companies' Statutory Capital and Surplus above. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) by Component | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) by Component | Note O. Accumulated Other Comprehensive Income (Loss) by Component | |||||||||||||||||||||||
The table below displays the changes in Accumulated other comprehensive income (loss) by component for the years ended December 31, 2014 and 2013. | ||||||||||||||||||||||||
Net unrealized gains (losses) on investments with OTTI losses | Net unrealized gains (losses) on other investments | Net unrealized gains (losses) on discontinued operations | Pension and postretirement benefits | Cumulative foreign currency translation adjustment | Total | |||||||||||||||||||
Balance at December 31, 2013 | $ | 26 | $ | 692 | $ | — | $ | (426 | ) | $ | 150 | $ | 442 | |||||||||||
Change due to sale of subsidiaries | (5 | ) | (17 | ) | 22 | — | — | — | ||||||||||||||||
Other comprehensive income (loss) before reclassifications | 15 | 295 | 12 | (219 | ) | (95 | ) | 8 | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) after tax (expense) benefit of $0, $(10), $(23), $7, $0 and $(26) | — | 28 | 34 | (12 | ) | — | 50 | |||||||||||||||||
Other comprehensive income (loss) after tax (expense) benefit of $(8), $(122), $15, $111, $0 and $(4) | 15 | 267 | (22 | ) | (207 | ) | (95 | ) | (42 | ) | ||||||||||||||
Balance at December 31, 2014 | $ | 36 | $ | 942 | $ | — | $ | (633 | ) | $ | 55 | $ | 400 | |||||||||||
Net unrealized gains (losses) on investments with OTTI losses | Net unrealized gains (losses) on other investments | Pension and postretirement benefits | Cumulative foreign currency translation adjustment | Total | ||||||||||||||||||||
Balance at December 31, 2012 | $ | 20 | $ | 1,371 | $ | (721 | ) | $ | 161 | $ | 831 | |||||||||||||
Other comprehensive income (loss) before reclassifications | 6 | (658 | ) | 275 | (11 | ) | (388 | ) | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) after tax (expense) benefit of $0, $(10), $11, $0 and $1 | — | 21 | (20 | ) | — | 1 | ||||||||||||||||||
Other comprehensive income (loss) after tax (expense) benefit of $(3), $364, $(158), $0 and $203 | 6 | (679 | ) | 295 | (11 | ) | (389 | ) | ||||||||||||||||
Balance at December 31, 2013 | $ | 26 | $ | 692 | $ | (426 | ) | $ | 150 | $ | 442 | |||||||||||||
Amounts reclassified from Accumulated other comprehensive income (loss) shown above are reported in Net income (loss) as follows: | ||||||||||||||||||||||||
Component of AOCI | Consolidated Statements of Operations Line Item Affected by Reclassifications | |||||||||||||||||||||||
Net unrealized gains (losses) on investments with OTTI losses | Net realized investment gains (losses) | |||||||||||||||||||||||
Net unrealized gains (losses) on other investments | Net realized investment gains (losses) | |||||||||||||||||||||||
Net unrealized gains (losses) on discontinued operations | Income (loss) from discontinued operations | |||||||||||||||||||||||
Pension and postretirement benefits | Other operating expenses |
Business_Segments
Business Segments | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||
Business Segments | Note P. Business Segments | |||||||||||||||||||||||||||
The Company's core property and casualty commercial insurance operations are aggregated and reported in three business segments: Specialty, Commercial and International. Specialty provides a broad array of professional, financial and specialty property and casualty products and services, through a network of independent agents, brokers and managing general underwriters. Commercial includes property and casualty coverages sold to small businesses and middle market entities and organizations primarily through an independent agency distribution system. Commercial also includes commercial insurance and risk management products sold to large corporations primarily through insurance brokers. International provides management and professional liability coverages as well as a broad range of other property and casualty insurance products and services abroad through a network of brokers, independent agencies and managing general underwriters, as well as the Lloyd’s marketplace. | ||||||||||||||||||||||||||||
The Company's non-core operations are managed in two segments: Life & Group Non-Core and Corporate & Other Non-Core. Life & Group Non-Core primarily includes the results of our individual and group long term care businesses that are in run-off. Corporate & Other Non-Core primarily includes certain corporate expenses, including interest on corporate debt, and the results of certain property and casualty business in run-off, including CNA Re and A&EP. | ||||||||||||||||||||||||||||
The accounting policies of the segments are the same as those described in Note A to the Consolidated Financial Statements. The Company manages most of its assets on a legal entity basis, while segment operations are generally conducted across legal entities. As such, only insurance and reinsurance receivables, insurance reserves, deferred acquisition costs and goodwill are readily identifiable for all individual segments. Consistent with the Consolidated Balance Sheet presentation, the comparative period continues to reflect CAC assets and liabilities. Distinct investment portfolios are not maintained for every individual segment; accordingly, allocation of assets to each segment is not performed. Therefore, a significant portion of net investment income and realized investment gains or losses are allocated primarily based on each segment's net carried insurance reserves, as adjusted. All significant intersegment income and expense has been eliminated. Income taxes have been allocated on the basis of the taxable income of the segments. | ||||||||||||||||||||||||||||
Approximately 8.8%, 9.0% and 9.2% of the Company's direct written premiums were derived from outside the United States for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||||||||||||||||
In the following tables, certain financial measures are presented to provide information used by management to monitor the Company's operating performance. Management utilizes these financial measures to monitor the Company's insurance operations and investment portfolio. Net operating income, which is derived from certain income statement amounts, is used by management to monitor performance of the Company's insurance operations. The Company's investment portfolio is monitored by management through analysis of various factors including unrealized gains and losses on securities, portfolio duration and exposure to market and credit risk. Based on such analyses, the Company may recognize an OTTI loss on an investment security in accordance with its policy, or sell a security, which may produce realized gains and losses. | ||||||||||||||||||||||||||||
Net operating income (loss) is calculated by excluding from net income (loss) the after-tax effects of 1) net realized investment gains or losses, 2) income or loss from discontinued operations and 3) any cumulative effects of changes in accounting guidance. The calculation of net operating income excludes net realized investment gains or losses because net realized investment gains or losses are largely discretionary, except for some losses related to OTTI, and are generally driven by economic factors that are not necessarily consistent with key drivers of underwriting performance, and are therefore not considered an indication of trends in insurance operations. | ||||||||||||||||||||||||||||
The Company's results of operations and selected balance sheet items by segment are presented in the following tables. | ||||||||||||||||||||||||||||
Year ended December 31, 2014 | Specialty | Commercial | International | Life & | Corporate | |||||||||||||||||||||||
Group | & Other | |||||||||||||||||||||||||||
(In millions) | Non-Core | Non-Core | Eliminations | Total | ||||||||||||||||||||||||
Net written premiums | $ | 2,839 | $ | 2,817 | $ | 880 | $ | 553 | $ | 1 | $ | (2 | ) | $ | 7,088 | |||||||||||||
Operating revenues | ||||||||||||||||||||||||||||
Net earned premiums | $ | 2,838 | $ | 2,906 | $ | 913 | $ | 556 | $ | 1 | $ | (2 | ) | $ | 7,212 | |||||||||||||
Net investment income | 560 | 723 | 61 | 700 | 23 | — | 2,067 | |||||||||||||||||||||
Other revenues | 295 | 38 | — | 16 | 12 | (5 | ) | 356 | ||||||||||||||||||||
Total operating revenues | 3,693 | 3,667 | 974 | 1,272 | 36 | (7 | ) | 9,635 | ||||||||||||||||||||
Claims, Benefits and Expenses | ||||||||||||||||||||||||||||
Net incurred claims and benefits | 1,627 | 2,187 | 488 | 1,304 | (29 | ) | — | 5,577 | ||||||||||||||||||||
Policyholders’ dividends | 6 | 8 | — | — | — | — | 14 | |||||||||||||||||||||
Amortization of deferred acquisition costs | 592 | 493 | 204 | 28 | — | — | 1,317 | |||||||||||||||||||||
Other insurance related expenses | 262 | 487 | 151 | 130 | 1 | (2 | ) | 1,029 | ||||||||||||||||||||
Other expenses | 254 | 31 | 28 | 30 | 210 | (5 | ) | 548 | ||||||||||||||||||||
Total claims, benefits and expenses | 2,741 | 3,206 | 871 | 1,492 | 182 | (7 | ) | 8,485 | ||||||||||||||||||||
Operating income (loss) from continuing operations before income tax | 952 | 461 | 103 | (220 | ) | (146 | ) | — | 1,150 | |||||||||||||||||||
Income tax (expense) benefit on operating income (loss) | (318 | ) | (154 | ) | (34 | ) | 151 | 54 | — | (301 | ) | |||||||||||||||||
Net operating income (loss) from continuing operations | 634 | 307 | 69 | (69 | ) | (92 | ) | — | 849 | |||||||||||||||||||
Net realized investment gains (losses), pretax | 15 | 16 | (1 | ) | 7 | 20 | — | 57 | ||||||||||||||||||||
Income tax (expense) benefit on net realized investment gains (losses) | (5 | ) | (6 | ) | 1 | — | (8 | ) | — | (18 | ) | |||||||||||||||||
Net realized investment gains (losses) | 10 | 10 | — | 7 | 12 | — | 39 | |||||||||||||||||||||
Net income (loss) from continuing operations | $ | 644 | $ | 317 | $ | 69 | $ | (62 | ) | $ | (80 | ) | $ | — | $ | 888 | ||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Reinsurance receivables | $ | 567 | $ | 690 | $ | 207 | $ | 525 | $ | 2,753 | $ | — | $ | 4,742 | ||||||||||||||
Insurance receivables | 778 | 954 | 250 | 13 | 2 | — | 1,997 | |||||||||||||||||||||
Deferred acquisition costs | 304 | 213 | 83 | — | — | — | 600 | |||||||||||||||||||||
Goodwill | 117 | — | 35 | — | — | — | 152 | |||||||||||||||||||||
Insurance reserves | ||||||||||||||||||||||||||||
Claim and claim adjustment expenses | 6,229 | 9,514 | 1,441 | 3,183 | 2,904 | — | 23,271 | |||||||||||||||||||||
Unearned premiums | 1,763 | 1,273 | 431 | 125 | — | — | 3,592 | |||||||||||||||||||||
Future policy benefits | — | — | — | 9,490 | — | — | 9,490 | |||||||||||||||||||||
Policyholders’ funds | 9 | 18 | — | — | — | — | 27 | |||||||||||||||||||||
Year ended December 31, 2013 | Specialty | Commercial | International | Life & | Corporate | |||||||||||||||||||||||
Group | & Other | |||||||||||||||||||||||||||
(In millions) | Non-Core | Non-Core | Eliminations | Total | ||||||||||||||||||||||||
Net written premiums | $ | 2,880 | $ | 2,960 | $ | 959 | $ | 552 | $ | (1 | ) | $ | (2 | ) | $ | 7,348 | ||||||||||||
Operating revenues | ||||||||||||||||||||||||||||
Net earned premiums | $ | 2,795 | $ | 3,004 | $ | 916 | $ | 559 | $ | (1 | ) | $ | (2 | ) | $ | 7,271 | ||||||||||||
Net investment income | 629 | 899 | 60 | 662 | 32 | — | 2,282 | |||||||||||||||||||||
Other revenues | 257 | 96 | — | (4 | ) | 12 | (2 | ) | 359 | |||||||||||||||||||
Total operating revenues | 3,681 | 3,999 | 976 | 1,217 | 43 | (4 | ) | 9,912 | ||||||||||||||||||||
Claims, Benefits and Expenses | ||||||||||||||||||||||||||||
Net incurred claims and benefits | 1,593 | 2,259 | 489 | 1,261 | 191 | — | 5,793 | |||||||||||||||||||||
Policyholders’ dividends | 6 | 7 | — | — | — | — | 13 | |||||||||||||||||||||
Amortization of deferred acquisition costs | 585 | 526 | 223 | 28 | — | — | 1,362 | |||||||||||||||||||||
Other insurance related expenses | 250 | 498 | 140 | 130 | (3 | ) | (2 | ) | 1,013 | |||||||||||||||||||
Other expenses | 237 | 32 | 12 | 13 | 183 | (2 | ) | 475 | ||||||||||||||||||||
Total claims, benefits and expenses | 2,671 | 3,322 | 864 | 1,432 | 371 | (4 | ) | 8,656 | ||||||||||||||||||||
Operating income (loss) from continuing operations before income tax | 1,010 | 677 | 112 | (215 | ) | (328 | ) | — | 1,256 | |||||||||||||||||||
Income tax (expense) benefit on operating income (loss) | (342 | ) | (229 | ) | (43 | ) | 141 | 118 | — | (355 | ) | |||||||||||||||||
Net operating income (loss) from continuing operations | 668 | 448 | 69 | (74 | ) | (210 | ) | — | 901 | |||||||||||||||||||
Net realized investment gains (losses), pretax | (5 | ) | (15 | ) | 5 | 26 | 9 | — | 20 | |||||||||||||||||||
Income tax (expense) benefit on net realized investment gains (losses) | 2 | 5 | (2 | ) | (8 | ) | (3 | ) | — | (6 | ) | |||||||||||||||||
Net realized investment gains (losses) | (3 | ) | (10 | ) | 3 | 18 | 6 | — | 14 | |||||||||||||||||||
Net income (loss) from continuing operations | $ | 665 | $ | 438 | $ | 72 | $ | (56 | ) | $ | (204 | ) | $ | — | $ | 915 | ||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Reinsurance receivables | $ | 500 | $ | 1,024 | $ | 294 | $ | 1,203 | $ | 3,067 | $ | — | $ | 6,088 | ||||||||||||||
Insurance receivables | 732 | 1,019 | 299 | 11 | 2 | — | 2,063 | |||||||||||||||||||||
Deferred acquisition costs | 299 | 226 | 99 | — | — | — | 624 | |||||||||||||||||||||
Goodwill | 117 | — | 38 | — | — | — | 155 | |||||||||||||||||||||
Insurance reserves | ||||||||||||||||||||||||||||
Claim and claim adjustment expenses | 6,058 | 10,091 | 1,575 | 3,058 | 3,307 | — | 24,089 | |||||||||||||||||||||
Unearned premiums | 1,710 | 1,374 | 506 | 128 | — | — | 3,718 | |||||||||||||||||||||
Future policy benefits | — | — | — | 10,471 | — | — | 10,471 | |||||||||||||||||||||
Policyholders’ funds | 9 | 15 | — | 92 | — | — | 116 | |||||||||||||||||||||
Year ended December 31, 2012 | Specialty | Commercial | Life & | Corporate | ||||||||||||||||||||||||
Group | & Other | |||||||||||||||||||||||||||
(In millions) | International(a) | Non-Core | Non-Core | Eliminations | Total | |||||||||||||||||||||||
Net written premiums | $ | 2,733 | $ | 3,033 | $ | 648 | $ | 553 | $ | (1 | ) | $ | (2 | ) | $ | 6,964 | ||||||||||||
Operating revenues | ||||||||||||||||||||||||||||
Net earned premiums | $ | 2,709 | $ | 2,968 | $ | 647 | $ | 559 | $ | — | $ | (2 | ) | $ | 6,881 | |||||||||||||
Net investment income | 564 | 826 | 59 | 629 | 32 | — | 2,110 | |||||||||||||||||||||
Other revenues | 231 | 41 | (1 | ) | 33 | 16 | (1 | ) | 319 | |||||||||||||||||||
Total operating revenues | 3,504 | 3,835 | 705 | 1,221 | 48 | (3 | ) | 9,310 | ||||||||||||||||||||
Claims, Benefits and Expenses | ||||||||||||||||||||||||||||
Net incurred claims and benefits | 1,746 | 2,370 | 361 | 1,255 | (16 | ) | — | 5,716 | ||||||||||||||||||||
Policyholders’ dividends | 2 | 11 | — | — | — | — | 13 | |||||||||||||||||||||
Amortization of deferred acquisition costs | 574 | 520 | 152 | 28 | — | — | 1,274 | |||||||||||||||||||||
Other insurance related expenses | 278 | 532 | 94 | 142 | 3 | (2 | ) | 1,047 | ||||||||||||||||||||
Other expenses | 207 | 37 | 7 | 22 | 183 | (1 | ) | 455 | ||||||||||||||||||||
Total claims, benefits and expenses | 2,807 | 3,470 | 614 | 1,447 | 170 | (3 | ) | 8,505 | ||||||||||||||||||||
Operating income (loss) from continuing operations before income tax | 697 | 365 | 91 | (226 | ) | (122 | ) | — | 805 | |||||||||||||||||||
Income tax (expense) benefit on operating income (loss) | (235 | ) | (120 | ) | (40 | ) | 134 | 41 | — | (220 | ) | |||||||||||||||||
Net operating income (loss) from continuing operations | 462 | 245 | 51 | (92 | ) | (81 | ) | — | 585 | |||||||||||||||||||
Net realized investment gains (losses), pretax | 18 | 34 | 7 | (9 | ) | 4 | — | 54 | ||||||||||||||||||||
Income tax (expense) benefit on net realized investment gains (losses) | (8 | ) | (11 | ) | (1 | ) | 3 | (2 | ) | — | (19 | ) | ||||||||||||||||
Net realized investment gains (losses) | 10 | 23 | 6 | (6 | ) | 2 | — | 35 | ||||||||||||||||||||
Net income (loss) from continuing operations | $ | 472 | $ | 268 | $ | 57 | $ | (98 | ) | $ | (79 | ) | $ | — | $ | 620 | ||||||||||||
____________________ | ||||||||||||||||||||||||||||
(a) | International includes Hardy from the date of acquisition. | |||||||||||||||||||||||||||
The following table provides revenue by line of business for each reportable segment. Revenues are comprised of operating revenues and net realized investment gains and losses. | ||||||||||||||||||||||||||||
Revenues by Line of Business | ||||||||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||||||
Specialty | ||||||||||||||||||||||||||||
Management & Professional Liability | $ | 2,818 | $ | 2,836 | $ | 2,723 | ||||||||||||||||||||||
Surety | 509 | 490 | 485 | |||||||||||||||||||||||||
Warranty & Alternative Risks | 381 | 350 | 314 | |||||||||||||||||||||||||
Specialty revenues | 3,708 | 3,676 | 3,522 | |||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||
Middle Market | 1,631 | 1,642 | 1,560 | |||||||||||||||||||||||||
Small Business | 709 | 754 | 669 | |||||||||||||||||||||||||
Other Commercial Insurance | 1,343 | 1,588 | 1,640 | |||||||||||||||||||||||||
Commercial revenues | 3,683 | 3,984 | 3,869 | |||||||||||||||||||||||||
International | ||||||||||||||||||||||||||||
Canada | 273 | 289 | 276 | |||||||||||||||||||||||||
CNA Europe | 335 | 326 | 313 | |||||||||||||||||||||||||
Hardy | 365 | 366 | 123 | |||||||||||||||||||||||||
International revenues | 973 | 981 | 712 | |||||||||||||||||||||||||
Life & Group Non-Core revenues | 1,279 | 1,243 | 1,212 | |||||||||||||||||||||||||
Corporate & Other Non-Core revenues | 56 | 52 | 52 | |||||||||||||||||||||||||
Eliminations | (7 | ) | (4 | ) | (3 | ) | ||||||||||||||||||||||
Total revenues | $ | 9,692 | $ | 9,932 | $ | 9,364 | ||||||||||||||||||||||
Discontinued_Operations
Discontinued Operations | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||
Discontinued Operations | Note Q. Discontinued Operations | ||||||||||||
The results of discontinued operations reflected in the Consolidated Statements of Operations were as follows: | |||||||||||||
Years ended December 31 | |||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||
Revenues | |||||||||||||
Net earned premiums | $ | — | $ | — | $ | 1 | |||||||
Net investment income | 94 | 168 | 172 | ||||||||||
Net realized investment gains | 3 | 11 | 9 | ||||||||||
Other revenues | — | 2 | 1 | ||||||||||
Total revenues | 97 | 181 | 183 | ||||||||||
Claims, Benefits and Expenses | |||||||||||||
Insurance claims and policyholders' benefits | 75 | 141 | 167 | ||||||||||
Other operating expenses | 2 | 3 | 3 | ||||||||||
Total claims, benefits and expenses | 77 | 144 | 170 | ||||||||||
Income before income tax | 20 | 37 | 13 | ||||||||||
Income tax expense | (6 | ) | (15 | ) | (5 | ) | |||||||
Income from operations of discontinued operations, net of income tax | 14 | 22 | 8 | ||||||||||
Loss on sale, net of income tax benefit of $40, $0 and $0 | (211 | ) | — | — | |||||||||
(Loss) income from discontinued operations | $ | (197 | ) | $ | 22 | $ | 8 | ||||||
The disposal group included $3,550 million of assets and $3,297 million of liabilities as of August 1, 2014. |
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Quarterly Financial Data [Abstract] | ||||||||||||||||||||
Quarterly Financial Data (Unaudited) | Note R. Quarterly Financial Data (Unaudited) | |||||||||||||||||||
The following tables set forth unaudited quarterly financial data for the years ended December 31, 2014 and 2013. | ||||||||||||||||||||
Quarterly Financial Data | ||||||||||||||||||||
2014 | ||||||||||||||||||||
(In millions, except per share data) | First | Second | Third | Fourth | Full Year | |||||||||||||||
Revenues | $ | 2,463 | $ | 2,440 | $ | 2,411 | $ | 2,378 | $ | 9,692 | ||||||||||
Net income (loss) (a) | $ | 13 | $ | 267 | $ | 213 | $ | 198 | $ | 691 | ||||||||||
Basic earnings (loss) per share | $ | 0.05 | $ | 0.99 | $ | 0.79 | $ | 0.73 | $ | 2.56 | ||||||||||
Diluted earnings (loss) per share | $ | 0.05 | $ | 0.98 | $ | 0.79 | $ | 0.73 | $ | 2.55 | ||||||||||
2013 | ||||||||||||||||||||
(In millions, except per share data) | First | Second | Third | Fourth | Full Year | |||||||||||||||
Revenues | $ | 2,455 | $ | 2,450 | $ | 2,458 | $ | 2,569 | $ | 9,932 | ||||||||||
Net income (loss) | $ | 250 | $ | 194 | $ | 272 | $ | 221 | $ | 937 | ||||||||||
Basic earnings (loss) per share | $ | 0.93 | $ | 0.72 | $ | 1.01 | $ | 0.82 | $ | 3.48 | ||||||||||
Diluted earnings (loss) per share (b) | $ | 0.93 | $ | 0.72 | $ | 1.01 | $ | 0.82 | $ | 3.47 | ||||||||||
____________________ | ||||||||||||||||||||
(a) | Net income in the first quarter of 2014 includes the impairment loss on the sale of CAC. | |||||||||||||||||||
(b) | Due to the averaging of shares, quarterly earnings per share do not add to the total for the full year. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note S. Related Party Transactions |
The Company reimburses Loews, or pays directly, for fees and expenses of investment facilities and services provided to the Company. The amounts incurred by the Company for these fees and expenses were $39 million, $37 million and $36 million for the years ended December 31, 2014, 2013 and 2012 and amounts due to Loews, included in Other liabilities and payable in the first quarter of the subsequent year, were $21 million and $19 million as of December 31, 2014 and 2013. In addition, the Company reimbursed Loews for general corporate services and related travel expenses of $4 million for the years ended December 31, 2013 and 2012. The CNA Tax Group is included in the consolidated federal income tax return of Loews and its eligible subsidiaries, and the related payable to Loews, included in Other liabilities, was $132 million and $178 million as of December 31, 2014 and 2013. For a detailed description of the income tax agreement with Loews see Note E to the Consolidated Financial Statements. In addition, the Company writes, at standard rates, a limited amount of insurance for Loews and its subsidiaries. The earned premiums for the years ended December 31, 2014, 2013 and 2012 were $2 million in each year. | |
CNA previously sponsored a stock ownership plan whereby the Company financed the purchase of Company common stock by certain former officers, including executive officers. Interest charged on the principal amount of these outstanding stock purchase loans is generally equivalent to the short term applicable federal rate in effect on the disbursement date of the loan, compounded semi-annually. Loans made pursuant to the plan were full recourse and secured by the stock purchased. The loans were originally issued with a ten-year maturity date, and the remaining loan has been extended with current terms maturing through May 2016. |
Schedule_I_Summary_of_Investme
Schedule I. Summary of Investments - Other Than Investments in Related Parties | 12 Months Ended |
Dec. 31, 2014 | |
Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Schedule I. Summary of Investments - Other than Investments in Related Parties | SCHEDULE I. SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES |
Incorporated herein by reference to Note B to the Consolidated Financial Statements included under Item 8. |
Schedule_II_Condensed_Financia
Schedule II. Condensed Financial Information of Registrant (Parent Company) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||
Schedule II. Condensed Financial Information of Registrant (Parent Company) | SCHEDULE II. CONDENSED FINANCIAL INFORMATION OF REGISTRANT (PARENT COMPANY) | |||||||||||
CNA Financial Corporation | ||||||||||||
Statements of Operations and Comprehensive Income | ||||||||||||
Years ended December 31 | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Revenues | ||||||||||||
Net investment income | $ | 1 | $ | 1 | $ | 1 | ||||||
Net realized investment gains | 4 | 4 | 4 | |||||||||
Other income | — | — | 9 | |||||||||
Total revenues | 5 | 5 | 14 | |||||||||
Expenses | ||||||||||||
Administrative and general | 5 | (7 | ) | 1 | ||||||||
Interest | 182 | 165 | 164 | |||||||||
Total expenses | 187 | 158 | 165 | |||||||||
Loss from operations before income taxes and equity in net income of subsidiaries | (182 | ) | (153 | ) | (151 | ) | ||||||
Income tax benefit | 35 | 22 | 144 | |||||||||
Loss before equity in net income of subsidiaries | (147 | ) | (131 | ) | (7 | ) | ||||||
Equity in net income of subsidiaries | 838 | 1,068 | 635 | |||||||||
Net income | 691 | 937 | 628 | |||||||||
Equity in other comprehensive income of subsidiaries | (42 | ) | (389 | ) | 351 | |||||||
Total Comprehensive Income | $ | 649 | $ | 548 | $ | 979 | ||||||
See accompanying Notes to Condensed Financial Information as well as the Consolidated Financial Statements and accompanying Notes. | ||||||||||||
CNA Financial Corporation | ||||||||||||
Balance Sheets | ||||||||||||
31-Dec | ||||||||||||
(In millions, except share data) | 2014 | 2013 | ||||||||||
Assets | ||||||||||||
Investment in subsidiaries | $ | 14,867 | $ | 14,708 | ||||||||
Cash | 1 | 1 | ||||||||||
Fixed maturity securities available-for-sale, at fair value (amortized cost of $1 and $1) | 1 | 1 | ||||||||||
Short term investments | 499 | 505 | ||||||||||
Amounts due from subsidiaries | — | 3 | ||||||||||
Other assets | 3 | 3 | ||||||||||
Total assets | $ | 15,371 | $ | 15,221 | ||||||||
Liabilities | ||||||||||||
Short term debt | $ | — | $ | 549 | ||||||||
Long term debt | 2,529 | 1,981 | ||||||||||
Other liabilities | 48 | 40 | ||||||||||
Total liabilities | 2,577 | 2,570 | ||||||||||
Stockholders' Equity | ||||||||||||
Common stock ($2.50 par value; 500,000,000 shares authorized; 273,040,243 shares issued; 269,980,202 and 269,717,583 shares outstanding) | 683 | 683 | ||||||||||
Additional paid-in capital | 2,151 | 2,145 | ||||||||||
Retained earnings | 9,645 | 9,495 | ||||||||||
Accumulated other comprehensive income | 400 | 442 | ||||||||||
Treasury stock (3,060,041 and 3,322,660 shares), at cost | (84 | ) | (91 | ) | ||||||||
Notes receivable for the issuance of common stock | (1 | ) | (23 | ) | ||||||||
Total stockholders' equity | 12,794 | 12,651 | ||||||||||
Total liabilities and stockholders' equity | $ | 15,371 | $ | 15,221 | ||||||||
See accompanying Notes to Condensed Financial Information as well as the Consolidated Financial Statements and accompanying Notes. | ||||||||||||
CNA Financial Corporation | ||||||||||||
Statements of Cash Flows | ||||||||||||
Years ended December 31 | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Cash Flows from Operating Activities | ||||||||||||
Net income | $ | 691 | $ | 937 | $ | 628 | ||||||
Adjustments to reconcile net income to net cash flows provided by operating activities: | ||||||||||||
Equity in net income of subsidiaries | (838 | ) | (1,068 | ) | (635 | ) | ||||||
Dividends received from subsidiaries | 650 | 400 | 450 | |||||||||
Net realized investment gains | (4 | ) | (4 | ) | (4 | ) | ||||||
Other, net | 14 | 8 | 19 | |||||||||
Total adjustments | (178 | ) | (664 | ) | (170 | ) | ||||||
Net cash flows provided by operating activities | 513 | 273 | 458 | |||||||||
Cash Flows from Investing Activities | ||||||||||||
Proceeds from fixed maturity securities | — | 1 | 1 | |||||||||
Change in short term investments | 6 | (57 | ) | (156 | ) | |||||||
Capital contributions to subsidiaries | (10 | ) | (12 | ) | (399 | ) | ||||||
Repayment of surplus note by subsidiary | — | — | 250 | |||||||||
Other, net | 5 | 4 | 4 | |||||||||
Net cash flows used by investing activities | 1 | (64 | ) | (300 | ) | |||||||
Cash Flows from Financing Activities | ||||||||||||
Dividends paid to common stockholders | (541 | ) | (216 | ) | (162 | ) | ||||||
Proceeds from the issuance of debt | 546 | — | — | |||||||||
Repayment of debt | (549 | ) | (3 | ) | — | |||||||
Stock options exercised | 5 | 2 | 1 | |||||||||
Other, net | 25 | 9 | 3 | |||||||||
Net cash flows used by financing activities | (514 | ) | (208 | ) | (158 | ) | ||||||
Net change in cash | — | 1 | — | |||||||||
Cash, beginning of year | 1 | — | — | |||||||||
Cash, end of year | $ | 1 | $ | 1 | $ | — | ||||||
See accompanying Notes to Condensed Financial Information as well as the Consolidated Financial Statements and accompanying Notes. | ||||||||||||
Notes to Condensed Financial Information | ||||||||||||
A. Basis of Presentation | ||||||||||||
The condensed financial information of CNA Financial Corporation (CNAF or the Parent Company) should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in Item 8 of this Form 10-K. CNAF’s subsidiaries are accounted for using the equity method of accounting. Equity in net income of these subsidiaries is presented on the Condensed Statements of Operations as Equity in net income of subsidiaries. Loews owned approximately 90% of the outstanding common stock of CNAF as of December 31, 2014. | ||||||||||||
B. Commitments, Contingencies and Guarantees | ||||||||||||
As of December 31, 2014 CNAF had recorded liabilities of approximately $5 million related to indemnification agreements. The Parent Company believes that it is not likely that any future indemnity claims will be significantly greater than the amounts recorded. As of December 31, 2013 CNAF had no recorded liabilities related to guarantee or indemnification agreements. | ||||||||||||
In the course of selling business entities and assets to third parties, CNAF has agreed to guarantee the performance of certain obligations of both a previously owned subsidiary and a current subsidiary. Such obligations include agreement to indemnify purchasers for losses arising out of breaches of representation and warranties with respect to the business entities or assets sold, including, in certain cases, losses arising from undisclosed liabilities or certain named litigation. The guarantee agreements may include provisions that survive indefinitely. As of December 31, 2014, the aggregate amount of quantifiable guarantee agreements in effect for sales of business entities, assets and third-party loans was $625 million. Should the company be required to make payments under the guarantee, it would have the right to seek reimbursement in certain cases from an affiliate of a previously owned subsidiary. | ||||||||||||
In addition, CNAF has agreed to provide indemnification to third-party purchasers for certain losses associated with sold business entities or assets that are not limited by a contractual monetary amount. As of December 31, 2014, CNAF had outstanding unlimited indemnifications in connection with the sales of certain of its business entities or assets that included tax liabilities arising prior to a purchaser’s ownership of an entity or asset, defects in title at the time of sale, employee claims arising prior to closing and in some cases losses arising from certain litigation and undisclosed liabilities. These indemnification agreements survive until the applicable statutes of limitation expire or until the agreed upon contract terms expire. | ||||||||||||
In the normal course of business, CNAF also provided guarantees, if the primary obligor fails to perform, to holders of structured settlement annuities provided by a previously owned subsidiary, which are estimated to mature through 2120. The potential amount of future payments CNAF could be required to pay under these guarantees was approximately $1.9 billion at December 31, 2014. The Parent Company does not believe a payable is likely under these guarantees, as it is the beneficiary of a trust that must be maintained at a level that approximates the discounted reserves for these annuities. |
Schedule_III_Supplementary_Ins
Schedule III. Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2014 | |
Supplementary Insurance Information [Abstract] | |
Schedule III. Supplementary Insurance Information | SCHEDULE III. SUPPLEMENTARY INSURANCE INFORMATION |
Incorporated herein by reference to Note P to the Consolidated Financial Statements included under Item 8. |
Schedule_IV_Reinsurance
Schedule IV. Reinsurance | 12 Months Ended |
Dec. 31, 2014 | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | |
Schedule IV. Reinsurance | SCHEDULE IV. REINSURANCE |
Incorporated herein by reference to Note H to the Consolidated Financial Statements included under Item 8. |
Schedule_V_Valuation_and_Quali
Schedule V. Valuation and Qualifying Accounts | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||||||
Schedule V. Valuation and Qualifying Accounts | SCHEDULE V. VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||||
(In millions) | Balance at Beginning of Period | Charged to Costs and Expenses | Charged to Other Accounts (a) | Deductions | Balance at End of Period | |||||||||||||||
Year ended December 31, 2014 | ||||||||||||||||||||
Deducted from assets: | ||||||||||||||||||||
Allowance for doubtful accounts: | ||||||||||||||||||||
Insurance and reinsurance receivables | $ | 155 | $ | (40 | ) | $ | (1 | ) | $ | (5 | ) | $ | 109 | |||||||
Year ended December 31, 2013 | ||||||||||||||||||||
Deducted from assets: | ||||||||||||||||||||
Allowance for doubtful accounts: | ||||||||||||||||||||
Insurance and reinsurance receivables | $ | 174 | $ | (6 | ) | $ | (3 | ) | $ | (10 | ) | $ | 155 | |||||||
Year ended December 31, 2012 | ||||||||||||||||||||
Deducted from assets: | ||||||||||||||||||||
Allowance for doubtful accounts: | ||||||||||||||||||||
Insurance and reinsurance receivables | $ | 203 | $ | (23 | ) | $ | 5 | $ | (11 | ) | $ | 174 | ||||||||
(a) Amount includes effects of foreign currency translation. |
Schedule_VI_Supplemental_Infor
Schedule VI. Supplemental Information Concerning Property and Casualty Insurance Operations | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Supplemental Information for Property, Casualty Insurance Underwriters [Abstract] | ||||||||||||
Schedule VI. Supplemental Information Concerning Property and Casualty Insurance Operations | SCHEDULE VI. SUPPLEMENTAL INFORMATION CONCERNING PROPERTY AND CASUALTY INSURANCE OPERATIONS | |||||||||||
As of and for the years ended December 31 | Consolidated Property and Casualty Operations | |||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Deferred acquisition costs | $ | 600 | $ | 624 | ||||||||
Reserves for unpaid claim and claim adjustment expenses | 23,271 | 24,015 | ||||||||||
Discount deducted from claim and claim adjustment expense reserves above (based on interest rates ranging from 3.5% to 8.0%) | 1,578 | 1,586 | ||||||||||
Unearned premiums | 3,592 | 3,718 | ||||||||||
Net written premiums | 7,088 | 7,348 | $ | 6,964 | ||||||||
Net earned premiums | 7,212 | 7,271 | 6,881 | |||||||||
Net investment income | 2,031 | 2,240 | 2,074 | |||||||||
Incurred claim and claim adjustment expenses related to current year | 5,043 | 5,113 | 5,266 | |||||||||
Incurred claim and claim adjustment expenses related to prior years | (39 | ) | (115 | ) | (180 | ) | ||||||
Amortization of deferred acquisition costs | 1,317 | 1,362 | 1,274 | |||||||||
Paid claim and claim adjustment expenses | 5,297 | 5,566 | 5,257 | |||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | |||||||||||
Accounting Policies [Abstract] | ||||||||||||
Consolidation | The accompanying Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). Intercompany amounts have been eliminated. | |||||||||||
Use of Estimates | The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates. | |||||||||||
Premiums | Premiums: Insurance premiums on property and casualty insurance contracts are recognized in proportion to the underlying risk insured which principally are earned ratably over the duration of the policies. Premiums on long term care contracts are earned ratably over the policy year in which they are due. The reserve for unearned premiums represents the portion of premiums written relating to the unexpired terms of coverage. | |||||||||||
Insurance receivables include balances due currently or in the future, including amounts due from insureds related to losses under high deductible policies, and are presented at unpaid balances, net of an allowance for uncollectible receivables. Amounts are considered past due based on policy payment terms. That allowance is determined based on periodic evaluations of aged receivables, management's experience and current economic conditions. Insurance receivables and any related allowance are written off after collection efforts are exhausted or a negotiated settlement is reached. | ||||||||||||
Property and casualty contracts that are retrospectively rated contain provisions that result in an adjustment to the initial policy premium depending on the contract provisions and loss experience of the insured during the experience period. For such contracts, the Company estimates the amount of ultimate premiums that the Company may earn upon completion of the experience period and recognizes either an asset or a liability for the difference between the initial policy premium and the estimated ultimate premium. The Company adjusts such estimated ultimate premium amounts during the course of the experience period based on actual results to date. The resulting adjustment is recorded as either a reduction of or an increase to the earned premiums for the period. | ||||||||||||
Claim and claim adjustment expense reserves | Claim and claim adjustment expense reserves: Claim and claim adjustment expense reserves, except reserves for structured settlements not associated with asbestos and environmental pollution (A&EP), workers' compensation lifetime claims and accident and health claims, are not discounted and are based on 1) case basis estimates for losses reported on direct business, adjusted in the aggregate for ultimate loss expectations; 2) estimates of incurred but not reported (IBNR) losses; 3) estimates of losses on assumed reinsurance; 4) estimates of future expenses to be incurred in the settlement of claims; 5) estimates of salvage and subrogation recoveries and 6) estimates of amounts due from insureds related to losses under high deductible policies. Management considers current conditions and trends as well as past Company and industry experience in establishing these estimates. The effects of inflation, which can be significant, are implicitly considered in the reserving process and are part of the recorded reserve balance. Ceded claim and claim adjustment expense reserves are reported as a component of Reinsurance receivables on the Consolidated Balance Sheets. | |||||||||||
Claim and claim adjustment expense reserves are presented net of anticipated amounts due from insureds related to losses under deductible policies of $1.4 billion and $1.3 billion as of December 31, 2014 and 2013. A significant portion of these amounts are supported by collateral. The Company has an allowance for uncollectible deductible amounts, which is presented as a component of the allowance for doubtful accounts included in Insurance receivables on the Consolidated Balance Sheets. | ||||||||||||
Structured settlements have been negotiated for certain property and casualty insurance claims. Structured settlements are agreements to provide fixed periodic payments to claimants. The Company's obligations for structured settlements not funded by annuities are included in claim and claim adjustment expense reserves and carried at present values determined using interest rates ranging from 5.5% to 8.0% at December 31, 2014 and 7.1% to 9.7% at December 31, 2013. At December 31, 2014 and 2013, the discounted reserves for unfunded structured settlements were $582 million and $580 million, net of discount of $924 million and $969 million. | ||||||||||||
Workers' compensation lifetime claim reserves are calculated using mortality assumptions determined through statutory regulation and economic factors. Accident and health claim reserves are calculated using mortality and morbidity assumptions based on Company and industry experience. Workers' compensation lifetime claim reserves and accident and health claim reserves are discounted at interest rates ranging from 3.5% to 6.8% at December 31, 2014 and 3.0% to 6.8% at December 31, 2013. At December 31, 2014 and 2013, such discounted reserves totaled $2.5 billion and $2.4 billion, net of discount of $654 million and $617 million. | ||||||||||||
Future policy benefits reserves | Future policy benefits reserves: Reserves for long term care policies and payout annuity contracts are computed using the net level premium method, which incorporates actuarial assumptions as to morbidity, persistency, discount rate and expenses. Expense assumptions primarily relate to claim adjudication. Actuarial assumptions generally vary by plan, age at issue and policy duration. The initial assumptions are determined at issuance, include a margin for adverse deviation and are locked in throughout the life of the contract unless a premium deficiency develops. If a premium deficiency emerges, the assumptions are unlocked and deferred acquisition costs, if any, and the future policy benefit reserves are adjusted. Interest rates for long term care products range from 4.5% to 7.9% at December 31, 2014 and 2013. Interest rates for payout annuity contracts ranged from 5.0% to 8.7% at December 31, 2013. | |||||||||||
Policyholders' funds reserves | Policyholders' funds reserves: Policyholders' funds reserves on the Consolidated Balance Sheet as of December 31, 2013 primarily included reserves for investment contracts without life contingencies. For these contracts, policyholder liabilities are generally equal to the accumulated policy account values, which consist of an accumulation of deposit payments plus credited interest, less withdrawals and amounts assessed through the end of the period. | |||||||||||
Guaranty fund and other insurance-related assessments | Guaranty fund and other insurance-related assessments: Liabilities for guaranty fund and other insurance-related assessments are accrued when an assessment is probable, when it can be reasonably estimated and when the event obligating the entity to pay an imposed or probable assessment has occurred. Liabilities for guaranty funds and other insurance-related assessments are not discounted and are included as part of Other liabilities on the Consolidated Balance Sheets. As of December 31, 2014 and 2013, the liability balances were $131 million and $143 million. | |||||||||||
Reinsurance | Reinsurance: Reinsurance accounting allows for contractual cash flows to be reflected as premiums and losses. To qualify for reinsurance accounting, reinsurance agreements must include risk transfer. To meet risk transfer requirements, a reinsurance contract must include both insurance risk, consisting of underwriting and timing risk, and a reasonable possibility of a significant loss for the assuming entity. | |||||||||||
Reinsurance receivables related to paid losses are presented at unpaid balances. Reinsurance receivables related to unpaid losses are estimated in a manner consistent with claim and claim adjustment expense reserves or future policy benefits reserves. Reinsurance receivables are reported net of an allowance for uncollectible amounts on the Consolidated Balance Sheets. The cost of reinsurance is primarily accounted for over the life of the underlying reinsured policies using assumptions consistent with those used to account for the underlying policies or over the reinsurance contract period. The ceding of insurance does not discharge the primary liability of the Company. | ||||||||||||
The Company has established an allowance for uncollectible reinsurance receivables which relates to both amounts already billed on ceded paid losses as well as ceded reserves that will be billed when losses are paid in the future. The allowance for uncollectible reinsurance receivables is estimated on the basis of periodic evaluations of balances due from reinsurers, reinsurer solvency, management's experience and current economic conditions. Reinsurer financial strength ratings are updated and reviewed on an annual basis or sooner if the Company becomes aware of significant changes related to a reinsurer. Because billed receivables generally approximate 5% or less of total reinsurance receivables, the age of the reinsurance receivables related to paid losses is not a significant input into the allowance analysis. Changes in the allowance for uncollectible reinsurance receivables are presented as a component of Insurance claims and policyholders' benefits on the Consolidated Statements of Operations. | ||||||||||||
Amounts are considered past due based on the reinsurance contract terms. Reinsurance receivables related to paid losses and any related allowance are written off after collection efforts have been exhausted or a negotiated settlement is reached with the reinsurer. Reinsurance receivables related to paid losses from insolvent insurers are written off when the settlement due from the estate can be reasonably estimated. At the time reinsurance receivables related to paid losses are written off, any required adjustment to reinsurance receivables related to unpaid losses is recorded as a component of Insurance claims and policyholders' benefits on the Consolidated Statements of Operations. | ||||||||||||
Reinsurance contracts that do not effectively transfer the economic risk of loss on the underlying policies are recorded using the deposit method of accounting, which requires that premium paid or received by the ceding company or assuming company be accounted for as a deposit asset or liability. The Company had $3 million recorded as deposit assets at December 31, 2014 and 2013, and $9 million and $130 million recorded as deposit liabilities at December 31, 2014 and 2013. Income on reinsurance contracts accounted for under the deposit method is recognized using an effective yield based on the anticipated timing of payments and the remaining life of the contract. When the anticipated timing of payments changes, the effective yield is recalculated to reflect actual payments to date and the estimated timing of future payments. The deposit asset or liability is adjusted to the amount that would have existed had the new effective yield been applied since the inception of the contract. | ||||||||||||
A loss portfolio transfer is a retroactive reinsurance contract. If the cumulative claim and allocated claim adjustment expenses ceded under a loss portfolio transfer exceed the consideration paid, the resulting gain from such excess is deferred and amortized into earnings in future periods in proportion to actual recoveries under the loss portfolio transfer. In the period in which an excess arises, a portion of the deferred gain is cumulatively recognized in earnings as if the revised estimate was available at the inception date of the loss portfolio transfer. | ||||||||||||
Deferred acquisition costs | Deferred acquisition costs: Acquisition costs include commissions, premium taxes and certain underwriting and policy issuance costs which are incremental direct costs of successful contract acquisitions. Deferred acquisition costs related to long term care contracts issued prior to January 1, 2004 include costs which vary with and are primarily related to the acquisition of business. | |||||||||||
Acquisition costs related to property and casualty business are deferred and amortized ratably over the period the related premiums are earned. | ||||||||||||
Deferred acquisition costs related to long term care contracts are amortized over the premium-paying period of the related policies using assumptions consistent with those used for computing future policy benefit reserves for such contracts. Assumptions are made at the date of policy issuance or acquisition and are consistently applied during the lives of the contracts. Deviations from estimated experience are included in results of operations when they occur. For these contracts, the amortization period is typically the estimated life of the policy. At December 31, 2014 and 2013, Deferred acquisition costs were presented net of Shadow Adjustments, as defined later in this note, of $314 million and $342 million. | ||||||||||||
The Company evaluates deferred acquisition costs for recoverability. Anticipated investment income is considered in the determination of the recoverability of deferred acquisition costs. Adjustments, if necessary, are recorded in current period results of operations. | ||||||||||||
Deferred acquisition costs are presented net of ceding commissions and other ceded acquisition costs. Unamortized deferred acquisition costs relating to contracts that have been substantially changed by a modification in benefits, features, rights or coverages that were not anticipated in the original contract are not deferred and are included as a charge to operations in the period during which the contract modification occurred. | ||||||||||||
Investments in life settlement contracts and related revenue recognition | Investments in life settlement contracts and related revenue recognition: Prior to 2002, the Company purchased investments in life settlement contracts. A life settlement contract is a contract between the owner of a life insurance policy (the policy owner) and a third-party investor (investor). Under a life settlement contract, the Company obtains the ownership and beneficiary rights of an underlying life insurance policy. | |||||||||||
The Company accounts for its investments in life settlement contracts using the fair value method. Under the fair value method, each life settlement contract is carried at its fair value at the end of each reporting period. The change in fair value, life insurance proceeds received and periodic maintenance costs, such as premiums, necessary to keep the underlying policy in force, are recorded in Other revenues on the Consolidated Statements of Operations. | ||||||||||||
The fair value of the Company's investments in life settlement contracts were $82 million and $88 million at December 31, 2014 and 2013, and are included in Other assets on the Consolidated Balance Sheets. The cash receipts and payments related to life settlement contracts are included in Cash flows from operating activities on the Consolidated Statements of Cash Flows. | ||||||||||||
The following table details the values for life settlement contracts. The determination of fair value is discussed in Note D to the Consolidated Financial Statements. | ||||||||||||
December 31, 2014 | Number of Life Settlement Contracts | Fair Value of Life Settlement Contracts | Face Amount of Life Insurance Policies | |||||||||
(In millions) | (In millions) | |||||||||||
Estimated maturity during: | ||||||||||||
2015 | 60 | $ | 11 | $ | 37 | |||||||
2016 | 60 | 10 | 33 | |||||||||
2017 | 50 | 9 | 30 | |||||||||
2018 | 50 | 7 | 26 | |||||||||
2019 | 50 | 6 | 26 | |||||||||
Thereafter | 318 | 39 | 187 | |||||||||
Total | 588 | $ | 82 | $ | 339 | |||||||
The Company uses an actuarial model to estimate the aggregate face amount of life insurance that is expected to mature in each future year and the corresponding fair value. This model projects the likelihood of the insured's death for each inforce policy based upon the Company's estimated mortality rates, which may vary due to the relatively small size of the portfolio of life settlement contracts. The number of life settlement contracts presented in the table above is based upon the average face amount of inforce policies estimated to mature in each future year. | ||||||||||||
The increase (decrease) in fair value recognized for the years ended December 31, 2014, 2013 and 2012 on contracts still held at each respective period-end was $8 million, $(2) million and $11 million. The gains recognized during the years ended December 31, 2014, 2013 and 2012 on contracts that settled were $25 million, $15 million and $42 million. | ||||||||||||
Separate Account Business | Separate Account Business: Separate account assets and liabilities on the Consolidated Balance Sheet as of December 31, 2013 represented contract holder funds related to investment and annuity products for which the policyholder assumes substantially all the risk and reward. The assets were segregated into accounts with specific underlying investment objectives and are legally segregated from the Company. All assets of the separate account business were carried at fair value with an equal amount recorded for separate account liabilities. | |||||||||||
Investments | Investments | |||||||||||
The Company classifies its fixed maturity securities and its equity securities as either available-for-sale or trading, and as such, they are carried at fair value. Changes in fair value of trading securities are reported within Net investment income on the Consolidated Statements of Operations. Changes in fair value related to available-for-sale securities are reported as a component of Other comprehensive income. The cost of fixed maturity securities classified as available-for-sale is adjusted for amortization of premiums and accretion of discounts to maturity, which are included in Net investment income on the Consolidated Statements of Operations. Losses may be recognized within Net realized investment gains (losses) on the Consolidated Statements of Operations when a decline in value is determined by the Company to be other-than-temporary. | ||||||||||||
To the extent that unrealized gains on fixed income securities supporting long term care products and payout annuity contracts would result in a premium deficiency if those gains were realized, a related decrease in Deferred acquisition costs and/or increase in Insurance reserves are recorded, net of tax, as a reduction of net unrealized gains through Other comprehensive income (Shadow Adjustments). Shadow Adjustments, net of tax, increased $756 million and decreased $979 million for the years ended December 31, 2014 and 2013. At December 31, 2014 and 2013, net unrealized gains on investments included in Accumulated other comprehensive income (AOCI) were correspondingly reduced by $1,288 million and $532 million. | ||||||||||||
For asset-backed securities included in fixed maturity securities, the Company recognizes income using an effective yield based on anticipated prepayments and the estimated economic life of the securities. When estimates of prepayments change, the effective yield is recalculated to reflect actual payments to date and anticipated future payments. The amortized cost of high credit quality fixed rate securities is adjusted to the amount that would have existed had the new effective yield been applied since the acquisition of the securities. Such adjustments are reflected in Net investment income on the Consolidated Statements of Operations. Interest income on lower rated and variable rate securities is determined using the prospective yield method. | ||||||||||||
The Company's carrying value of investments in limited partnerships is its share of the net asset value of each partnership, as determined by the General Partner. Certain partnerships for which results are not available on a timely basis are reported on a lag, primarily three months or less. Changes in net asset values are accounted for under the equity method and recorded within Net investment income on the Consolidated Statements of Operations. | ||||||||||||
Mortgage loans are commercial in nature, are carried at unpaid principal balance, net of unamortized fees and any valuation allowance, and are recorded once funded. Mortgage loans are considered to be impaired loans when it is probable that contractual principal and interest payments will not be collected. A valuation allowance is established for impaired loans to the extent that the present value of expected future cash flows discounted at the loan's original effective interest rate is less than the carrying value of the loan. Interest income from mortgage loans is recognized on an accrual basis using the effective yield method. Accrual of income is generally suspended for mortgage loans that are impaired and collection of principal and interest payments is unlikely. Mortgage loans are considered past due when full principal or interest payments have not been received according to contractual terms. | ||||||||||||
Other invested assets are carried at fair value and include overseas deposits and certain derivative securities. Overseas deposits are primarily short-term government securities, agency securities and corporate bonds held in trusts that are managed by Lloyd's. These funds are required of Lloyd's syndicates to protect policyholders in overseas markets and may be denominated in local currency. | ||||||||||||
Short term investments are carried at fair value, with the exception of cash accounts earning interest, which are carried at cost and approximate fair value. Changes in fair value are reported as a component of Other comprehensive income. | ||||||||||||
Purchases and sales of all securities are recorded on the trade date, except for private placement debt securities, including bank loan participations, which are recorded once funded. Realized investment gains and losses are determined on the basis of the cost or amortized cost of the specific securities sold. | ||||||||||||
Variable Interest Entities | In the normal course of investing activities, the Company enters into relationships with variable interest entities (VIEs), primarily as a passive investor in certain limited partnerships and asset-backed securities issued by third-party VIEs. The Company is not the primary beneficiary of these VIEs, and therefore does not consolidate them. The Company determines whether it is the primary beneficiary of a VIE based on a qualitative assessment of the entity’s purpose, the nature of its operations, its capital structure, its contractual terms and the Company’s relative exposure to the related risks of the VIE. 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. | |||||||||||
Impairments, Other Than Temporary | A security is impaired if the fair value of the security is less than its cost adjusted for accretion, amortization and previously recorded other-than-temporary impairment (OTTI) losses, otherwise defined as an unrealized loss. When a security is impaired, the impairment is evaluated to determine whether it is temporary or other-than-temporary. | |||||||||||
Significant judgment is required in the determination of whether an OTTI loss has occurred for a security. The Company follows a consistent and systematic process for determining and recording an OTTI loss. The Company has established a committee responsible for the OTTI process. This committee, referred to as the Impairment Committee, is made up of three officers appointed by the Company’s Chief Financial Officer. The Impairment Committee is responsible for evaluating all securities in an unrealized loss position on at least a quarterly basis. | ||||||||||||
The Impairment Committee’s assessment of whether an OTTI loss has occurred incorporates both quantitative and qualitative information. Fixed maturity securities that the Company intends to sell, or it more likely than not will be required to sell before recovery of amortized cost, are considered to be other-than-temporarily impaired and the entire difference between the amortized cost basis and fair value of the security is recognized as an OTTI loss in earnings. The remaining fixed maturity securities in an unrealized loss position are evaluated to determine if a credit loss exists. The factors considered by the Impairment Committee include (a) the financial condition and near term prospects of the issuer, (b) whether the debtor is current on interest and principal payments, (c) credit ratings of the securities and (d) general market conditions and industry or sector specific outlook. The Company also considers results and analysis of cash flow modeling for asset-backed securities, and when appropriate, other fixed maturity securities. The focus of the analysis for asset-backed securities is on assessing the sufficiency and quality of underlying collateral and timing of cash flows based on scenario tests. If the present value of the modeled expected cash flows equals or exceeds the amortized cost of a security, no credit loss is judged to exist and the asset-backed security is deemed to be temporarily impaired. If the present value of the expected cash flows is less than amortized cost, the security is judged to be other-than-temporarily impaired for credit reasons and that shortfall, referred to as the credit component, is recognized as an OTTI loss in earnings. The difference between the adjusted amortized cost basis and fair value, referred to as the non-credit component, is recognized as OTTI in Other comprehensive income. In subsequent reporting periods, a change in intent to sell or further credit impairment on a security whose fair value has not deteriorated will cause the non-credit component originally recorded as OTTI in Other comprehensive income to be recognized as an OTTI loss in earnings. | ||||||||||||
The Company performs the discounted cash flow analysis using stressed scenarios to determine future expectations regarding recoverability. Significant assumptions enter into these cash flow projections including delinquency rates, probable risk of default, loss severity upon a default, over collateralization and interest coverage triggers and credit support from lower level tranches. | ||||||||||||
The Company applies the same impairment model as described above for the majority of non-redeemable preferred stock securities on the basis that these securities possess characteristics similar to debt securities and that the issuers maintain their ability to pay dividends. For all other equity securities, in determining whether the security is other-than-temporarily impaired, the Impairment Committee considers a number of factors including, but not limited to: (a) the length of time and the extent to which the fair value has been less than amortized cost, (b) the financial condition and near term prospects of the issuer, (c) the intent and ability of the Company to retain its investment for a period of time sufficient to allow for an anticipated recovery in value and (d) general market conditions and industry or sector specific outlook. | ||||||||||||
Income Taxes | Income Taxes | |||||||||||
The Company and its eligible subsidiaries (CNA Tax Group) are included in the consolidated federal income tax return of Loews and its eligible subsidiaries. The Company accounts for income taxes under the asset and liability method. Under the asset and liability method, deferred income taxes are recognized for temporary differences between the financial statement and tax return bases of assets and liabilities, based on enacted tax rates and other provisions of the tax law. The effect of a change in tax laws or rates on deferred tax assets and liabilities is recognized in income in the period in which such change is enacted. Future tax benefits are recognized to the extent that realization of such benefits is more likely than not, and a valuation allowance is established for any portion of a deferred tax asset that management believes will not be realized. | ||||||||||||
Pension and Postretirement Benefits | Pension and Postretirement Benefits | |||||||||||
The Company recognizes the overfunded or underfunded status of its defined benefit plans in Other assets or Other liabilities on the Consolidated Balance Sheets. Changes in funded status related to prior service costs and credits and actuarial gains and losses are recognized in the year in which the changes occur through Other comprehensive income. Annual service cost, interest cost, expected return on plan assets, amortization of prior service costs and credits and amortization of actuarial gains and losses are recognized in the Consolidated Statements of Operations. The vested benefit obligation for the CNA Retirement Plan is determined based on the employees’ expected date of separation or retirement. | ||||||||||||
Stock-Based Compensation | Stock-Based Compensation | |||||||||||
The Company records compensation expense using the fair value method for all awards it grants, modifies or cancels primarily on a straight-line basis over the requisite service period, generally three to four years. | ||||||||||||
Foreign Currency | Foreign Currency | |||||||||||
Foreign currency translation gains and losses are reflected in Stockholders' equity as a component of AOCI. The Company's foreign subsidiaries' balance sheet accounts are translated at the exchange rates in effect at each reporting date and income statement accounts are either translated at the exchange rate on the date of the transaction or at the average exchange rates. Foreign currency transaction gains (losses) of $(25) million, $2 million and $12 million were included in determining net income (loss) for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||
Property and Equipment | Property and Equipment | |||||||||||
Property and equipment are carried at cost less accumulated depreciation. Depreciation is based on the estimated useful lives of the various classes of property and equipment and is determined principally on the straight-line method. Furniture and fixtures are depreciated over seven years. Office equipment is depreciated over five years. The estimated lives for data processing equipment and software range from three to five years. Leasehold improvements are depreciated over the corresponding lease terms not to exceed the underlying asset life. The Company's owned buildings, and related capital improvements, are depreciated over periods not to exceed fifty years. | ||||||||||||
Goodwill | Goodwill | |||||||||||
Goodwill represents the excess of purchase price over the fair value of the net assets of acquired entities and businesses. Goodwill in the International segment may change from period to period as a result of foreign currency translation. | ||||||||||||
Goodwill is tested for impairment annually or when certain triggering events require such tests. As a result of reviews completed for the year ended December 31, 2014, the Company determined that the estimated fair value of the reporting units were in excess of their carrying value including Goodwill. Changes in future periods in assumptions about the level of economic capital, business growth, earnings projections or the weighted average cost of capital could result in a goodwill impairment | ||||||||||||
Other Intangible Assets | Other Intangible Assets | |||||||||||
Other intangible assets are reported within Other assets. Finite-lived intangible assets are amortized over their estimated useful lives. Indefinite-lived other intangible assets are tested for impairment annually or when certain triggering events require such tests. | ||||||||||||
Earnings (Loss) Per Share Data | Earnings (Loss) Per Share Data | |||||||||||
Earnings (loss) per share is based on weighted average number of outstanding common shares. Basic earnings (loss) per share excludes the impact of dilutive securities and is computed by dividing Net income (loss) by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. | ||||||||||||
For the years ended December 31, 2014, 2013 and 2012, approximately 675 thousand, 552 thousand and 417 thousand potential shares attributable to exercises under stock-based employee compensation plans were included in the calculation of diluted earnings per share. For those same periods, approximately 170 thousand, 111 thousand and 730 thousand potential shares attributable to exercises under stock-based employee compensation plans were not included in the calculation of diluted earnings per share because the effect would have been antidilutive. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Life Settlement Contracts) (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Life settlement contracts | The following table details the values for life settlement contracts. The determination of fair value is discussed in Note D to the Consolidated Financial Statements. | ||||||||||
December 31, 2014 | Number of Life Settlement Contracts | Fair Value of Life Settlement Contracts | Face Amount of Life Insurance Policies | ||||||||
(In millions) | (In millions) | ||||||||||
Estimated maturity during: | |||||||||||
2015 | 60 | $ | 11 | $ | 37 | ||||||
2016 | 60 | 10 | 33 | ||||||||
2017 | 50 | 9 | 30 | ||||||||
2018 | 50 | 7 | 26 | ||||||||
2019 | 50 | 6 | 26 | ||||||||
Thereafter | 318 | 39 | 187 | ||||||||
Total | 588 | $ | 82 | $ | 339 | ||||||
Investments_Tables
Investments (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Investments [Abstract] | ||||||||||||||||||||||||
Net investment income | Net Investment Income | |||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Fixed maturity securities | $ | 1,803 | $ | 1,827 | $ | 1,846 | ||||||||||||||||||
Short term investments | 3 | 3 | 5 | |||||||||||||||||||||
Limited partnership investments | 263 | 451 | 251 | |||||||||||||||||||||
Equity securities | 12 | 12 | 12 | |||||||||||||||||||||
Mortgage loans | 31 | 23 | 17 | |||||||||||||||||||||
Trading portfolio | 10 | 17 | 24 | |||||||||||||||||||||
Other | 3 | 2 | 7 | |||||||||||||||||||||
Gross investment income | 2,125 | 2,335 | 2,162 | |||||||||||||||||||||
Investment expense | (58 | ) | (53 | ) | (52 | ) | ||||||||||||||||||
Net investment income | $ | 2,067 | $ | 2,282 | $ | 2,110 | ||||||||||||||||||
Net realized investment gains (losses) | Net Realized Investment Gains (Losses) | |||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Net realized investment gains (losses): | ||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||
Gross realized gains | $ | 170 | $ | 185 | $ | 222 | ||||||||||||||||||
Gross realized losses | (129 | ) | (144 | ) | (145 | ) | ||||||||||||||||||
Net realized investment gains (losses) on fixed maturity securities | 41 | 41 | 77 | |||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
Gross realized gains | 8 | 13 | 19 | |||||||||||||||||||||
Gross realized losses | (7 | ) | (35 | ) | (42 | ) | ||||||||||||||||||
Net realized investment gains (losses) on equity securities | 1 | (22 | ) | (23 | ) | |||||||||||||||||||
Derivatives | (1 | ) | (9 | ) | (2 | ) | ||||||||||||||||||
Short term investments and other | 16 | 10 | 2 | |||||||||||||||||||||
Net realized investment gains (losses) | $ | 57 | $ | 20 | $ | 54 | ||||||||||||||||||
Net change in unrealized gains (losses) on investments | Net Change in Unrealized Gains | |||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Net change in unrealized gains on investments: | ||||||||||||||||||||||||
Fixed maturity securities | $ | 1,511 | $ | (2,541 | ) | $ | 1,871 | |||||||||||||||||
Equity securities | 6 | (15 | ) | 5 | ||||||||||||||||||||
Other | — | — | (1 | ) | ||||||||||||||||||||
Total net change in unrealized gains on investments | $ | 1,517 | $ | (2,556 | ) | $ | 1,875 | |||||||||||||||||
Components Of Net Other Than Temporary Impairment Losses Recognized In Earnings By Asset Type [Table Text Block] | The components of OTTI losses recognized in earnings by asset type are summarized in the following table. | |||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Fixed maturity securities available-for-sale: | ||||||||||||||||||||||||
Corporate and other bonds | $ | 18 | $ | 20 | $ | 25 | ||||||||||||||||||
States, municipalities and political subdivisions | 46 | — | 34 | |||||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||
Residential mortgage-backed | 5 | 19 | 48 | |||||||||||||||||||||
Other asset-backed | 1 | 2 | — | |||||||||||||||||||||
Total asset-backed | 6 | 21 | 48 | |||||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | — | — | 1 | |||||||||||||||||||||
Total fixed maturity securities available-for-sale | 70 | 41 | 108 | |||||||||||||||||||||
Equity securities available-for-sale: | ||||||||||||||||||||||||
Common stock | 7 | 8 | 6 | |||||||||||||||||||||
Preferred stock | — | 26 | 36 | |||||||||||||||||||||
Total equity securities available-for-sale | 7 | 34 | 42 | |||||||||||||||||||||
Short term investments | — | 1 | — | |||||||||||||||||||||
OTTI losses recognized in earnings | $ | 77 | $ | 76 | $ | 150 | ||||||||||||||||||
Summary of fixed maturity and equity securities | Summary of Fixed Maturity and Equity Securities | |||||||||||||||||||||||
December 31, 2014 | Cost or | Gross | Gross | Estimated | Unrealized | |||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | OTTI | ||||||||||||||||||||
(In millions) | Cost | Gains | Losses | Value | Losses (Gains) | |||||||||||||||||||
Fixed maturity securities available-for-sale: | ||||||||||||||||||||||||
Corporate and other bonds | $ | 17,210 | $ | 1,721 | $ | 61 | $ | 18,870 | $ | — | ||||||||||||||
States, municipalities and political subdivisions | 11,285 | 1,463 | 8 | 12,740 | — | |||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||
Residential mortgage-backed | 5,028 | 218 | 13 | 5,233 | (53 | ) | ||||||||||||||||||
Commercial mortgage-backed | 2,056 | 93 | 5 | 2,144 | (2 | ) | ||||||||||||||||||
Other asset-backed | 1,234 | 11 | 10 | 1,235 | — | |||||||||||||||||||
Total asset-backed | 8,318 | 322 | 28 | 8,612 | (55 | ) | ||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 26 | 5 | — | 31 | — | |||||||||||||||||||
Foreign government | 438 | 16 | — | 454 | — | |||||||||||||||||||
Redeemable preferred stock | 39 | 3 | — | 42 | — | |||||||||||||||||||
Total fixed maturity securities available-for-sale | 37,316 | 3,530 | 97 | 40,749 | $ | (55 | ) | |||||||||||||||||
Total fixed maturity securities trading | 19 | 19 | ||||||||||||||||||||||
Equity securities available-for-sale: | ||||||||||||||||||||||||
Common stock | 38 | 9 | — | 47 | ||||||||||||||||||||
Preferred stock | 172 | 5 | 2 | 175 | ||||||||||||||||||||
Total equity securities available-for-sale | 210 | 14 | 2 | 222 | ||||||||||||||||||||
Total | $ | 37,545 | $ | 3,544 | $ | 99 | $ | 40,990 | ||||||||||||||||
December 31, 2013 | Cost or | Gross | Gross | Estimated | Unrealized | |||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | OTTI | ||||||||||||||||||||
(In millions) | Cost | Gains | Losses | Value | Losses (Gains) | |||||||||||||||||||
Fixed maturity securities available-for-sale: | ||||||||||||||||||||||||
Corporate and other bonds | $ | 19,352 | $ | 1,645 | $ | 135 | $ | 20,862 | $ | — | ||||||||||||||
States, municipalities and political subdivisions | 11,281 | 548 | 272 | 11,557 | — | |||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||
Residential mortgage-backed | 4,940 | 123 | 92 | 4,971 | (37 | ) | ||||||||||||||||||
Commercial mortgage-backed | 1,995 | 90 | 22 | 2,063 | (3 | ) | ||||||||||||||||||
Other asset-backed | 945 | 13 | 3 | 955 | — | |||||||||||||||||||
Total asset-backed | 7,880 | 226 | 117 | 7,989 | (40 | ) | ||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 139 | 6 | 1 | 144 | — | |||||||||||||||||||
Foreign government | 531 | 15 | 3 | 543 | — | |||||||||||||||||||
Redeemable preferred stock | 92 | 10 | — | 102 | — | |||||||||||||||||||
Total fixed maturity securities available-for-sale | 39,275 | 2,450 | 528 | 41,197 | $ | (40 | ) | |||||||||||||||||
Total fixed maturity securities trading | 36 | 36 | ||||||||||||||||||||||
Equity securities available-for-sale: | ||||||||||||||||||||||||
Common stock | 36 | 9 | — | 45 | ||||||||||||||||||||
Preferred stock | 143 | 1 | 4 | 140 | ||||||||||||||||||||
Total equity securities available-for-sale | 179 | 10 | 4 | 185 | ||||||||||||||||||||
Total | $ | 39,490 | $ | 2,460 | $ | 532 | $ | 41,418 | ||||||||||||||||
Securities in a gross unrealized loss position | Securities in a Gross Unrealized Loss Position | |||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||
December 31, 2014 | Estimated | Gross | Estimated | Gross | Estimated | Gross | ||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | |||||||||||||||||||
(In millions) | Losses | Losses | Losses | |||||||||||||||||||||
Fixed maturity securities available-for-sale: | ||||||||||||||||||||||||
Corporate and other bonds | $ | 1,330 | $ | 46 | $ | 277 | $ | 15 | $ | 1,607 | $ | 61 | ||||||||||||
States, municipalities and political subdivisions | 335 | 5 | 127 | 3 | 462 | 8 | ||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||
Residential mortgage-backed | 293 | 5 | 189 | 8 | 482 | 13 | ||||||||||||||||||
Commercial mortgage-backed | 264 | 2 | 99 | 3 | 363 | 5 | ||||||||||||||||||
Other asset-backed | 607 | 10 | 7 | — | 614 | 10 | ||||||||||||||||||
Total asset-backed | 1,164 | 17 | 295 | 11 | 1,459 | 28 | ||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 3 | — | 4 | — | 7 | — | ||||||||||||||||||
Foreign government | 3 | — | 3 | — | 6 | — | ||||||||||||||||||
Redeemable preferred stock | 3 | — | — | — | 3 | — | ||||||||||||||||||
Total fixed maturity securities available-for-sale | 2,838 | 68 | 706 | 29 | 3,544 | 97 | ||||||||||||||||||
Equity securities available-for-sale: | ||||||||||||||||||||||||
Preferred stock | 17 | 2 | 1 | — | 18 | 2 | ||||||||||||||||||
Total | $ | 2,855 | $ | 70 | $ | 707 | $ | 29 | $ | 3,562 | $ | 99 | ||||||||||||
Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||
December 31, 2013 | Estimated | Gross | Estimated | Gross | Estimated | Gross | ||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | |||||||||||||||||||
(In millions) | Losses | Losses | Losses | |||||||||||||||||||||
Fixed maturity securities available-for-sale: | ||||||||||||||||||||||||
Corporate and other bonds | $ | 3,592 | $ | 129 | $ | 72 | $ | 6 | $ | 3,664 | $ | 135 | ||||||||||||
States, municipalities and political subdivisions | 3,251 | 197 | 129 | 75 | 3,380 | 272 | ||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||
Residential mortgage-backed | 1,293 | 29 | 343 | 63 | 1,636 | 92 | ||||||||||||||||||
Commercial mortgage-backed | 640 | 22 | — | — | 640 | 22 | ||||||||||||||||||
Other asset-backed | 269 | 3 | — | — | 269 | 3 | ||||||||||||||||||
Total asset-backed | 2,202 | 54 | 343 | 63 | 2,545 | 117 | ||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 13 | 1 | — | — | 13 | 1 | ||||||||||||||||||
Foreign government | 111 | 3 | — | — | 111 | 3 | ||||||||||||||||||
Total fixed maturity securities available-for-sale | 9,169 | 384 | 544 | 144 | 9,713 | 528 | ||||||||||||||||||
Equity securities available-for-sale: | ||||||||||||||||||||||||
Preferred stock | 87 | 4 | — | — | 87 | 4 | ||||||||||||||||||
Total | $ | 9,256 | $ | 388 | $ | 544 | $ | 144 | $ | 9,800 | $ | 532 | ||||||||||||
Activity related to the pretax fixed maturity credit loss component reflected within retained earnings for securities still held for which a portion of an OTTI loss was recognized in OCI | The following table summarizes the activity for the years ended December 31, 2014, 2013 and 2012 related to the pretax credit loss component reflected in Retained earnings on fixed maturity securities still held at December 31, 2014, 2013 and 2012 for which a portion of an OTTI loss was recognized in Other comprehensive income. | |||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Beginning balance of credit losses on fixed maturity securities | $ | 74 | $ | 95 | $ | 92 | ||||||||||||||||||
Additional credit losses for securities for which an OTTI loss was previously recognized | — | 2 | 23 | |||||||||||||||||||||
Credit losses for securities for which an OTTI loss was not previously recognized | — | — | 2 | |||||||||||||||||||||
Reductions for securities sold during the period | (9 | ) | (23 | ) | (14 | ) | ||||||||||||||||||
Reductions for securities the Company intends to sell or more likely than not will be required to sell | (3 | ) | — | (8 | ) | |||||||||||||||||||
Ending balance of credit losses on fixed maturity securities | $ | 62 | $ | 74 | $ | 95 | ||||||||||||||||||
Contractual maturity | Contractual Maturity | |||||||||||||||||||||||
31-Dec | 2014 | 2013 | ||||||||||||||||||||||
(In millions) | Cost or | Estimated | Cost or | Estimated | ||||||||||||||||||||
Amortized | Fair | Amortized | Fair | |||||||||||||||||||||
Cost | Value | Cost | Value | |||||||||||||||||||||
Due in one year or less | $ | 2,479 | $ | 2,511 | $ | 2,420 | $ | 2,455 | ||||||||||||||||
Due after one year through five years | 9,054 | 9,605 | 9,496 | 10,068 | ||||||||||||||||||||
Due after five years through ten years | 12,055 | 12,584 | 11,667 | 11,954 | ||||||||||||||||||||
Due after ten years | 13,728 | 16,049 | 15,692 | 16,720 | ||||||||||||||||||||
Total | $ | 37,316 | $ | 40,749 | $ | 39,275 | $ | 41,197 | ||||||||||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Summary of Derivative Instruments [Abstract] | ||||||||||||
Summary of aggregate contractual or notional amounts and gross estimated fair values related to derivative financial instruments | Derivative Financial Instruments | |||||||||||
December 31, 2014 | Contractual/ | Estimated Fair Value | ||||||||||
Notional | ||||||||||||
(In millions) | Amount | Asset | (Liability) | |||||||||
Without hedge designation | ||||||||||||
Currency forwards | $ | 9 | $ | — | $ | — | ||||||
Equity warrants | 5 | — | — | |||||||||
Embedded derivative on funds withheld liability | 184 | — | (3 | ) | ||||||||
Total | $ | — | $ | (3 | ) | |||||||
December 31, 2013 | Contractual/ | Estimated Fair Value | ||||||||||
Notional | ||||||||||||
(In millions) | Amount | Asset | (Liability) | |||||||||
Without hedge designation | ||||||||||||
Equity warrants | $ | 5 | $ | — | $ | — | ||||||
Fair_Value_Tables
Fair Value (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis | Assets and liabilities measured at fair value on a recurring basis are summarized below. | |||||||||||||||||||||||||||||||||||||||
December 31, 2014 | Total | |||||||||||||||||||||||||||||||||||||||
Assets/ (Liabilities) | ||||||||||||||||||||||||||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | at Fair Value | ||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||
Corporate and other bonds | $ | 32 | $ | 18,695 | $ | 162 | $ | 18,889 | ||||||||||||||||||||||||||||||||
States, municipalities and political subdivisions | — | 12,646 | 94 | 12,740 | ||||||||||||||||||||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed | — | 5,044 | 189 | 5,233 | ||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed | — | 2,061 | 83 | 2,144 | ||||||||||||||||||||||||||||||||||||
Other asset-backed | — | 580 | 655 | 1,235 | ||||||||||||||||||||||||||||||||||||
Total asset-backed | — | 7,685 | 927 | 8,612 | ||||||||||||||||||||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 28 | 3 | — | 31 | ||||||||||||||||||||||||||||||||||||
Foreign government | 41 | 413 | — | 454 | ||||||||||||||||||||||||||||||||||||
Redeemable preferred stock | 30 | 12 | — | 42 | ||||||||||||||||||||||||||||||||||||
Total fixed maturity securities | 131 | 39,454 | 1,183 | 40,768 | ||||||||||||||||||||||||||||||||||||
Equity securities | 145 | 61 | 16 | 222 | ||||||||||||||||||||||||||||||||||||
Other invested assets | — | 41 | — | 41 | ||||||||||||||||||||||||||||||||||||
Short term investments | 681 | 963 | — | 1,644 | ||||||||||||||||||||||||||||||||||||
Life settlement contracts, included in Other assets | — | — | 82 | 82 | ||||||||||||||||||||||||||||||||||||
Total assets | $ | 957 | $ | 40,519 | $ | 1,281 | $ | 42,757 | ||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||
Other liabilities | $ | — | $ | (3 | ) | $ | — | $ | (3 | ) | ||||||||||||||||||||||||||||||
Total liabilities | $ | — | $ | (3 | ) | $ | — | $ | (3 | ) | ||||||||||||||||||||||||||||||
December 31, 2013 | Total | |||||||||||||||||||||||||||||||||||||||
Assets/(Liabilities) | ||||||||||||||||||||||||||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | at Fair Value | ||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||
Corporate and other bonds | $ | 33 | $ | 20,661 | $ | 204 | $ | 20,898 | ||||||||||||||||||||||||||||||||
States, municipalities and political subdivisions | — | 11,486 | 71 | 11,557 | ||||||||||||||||||||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed | — | 4,640 | 331 | 4,971 | ||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed | — | 1,912 | 151 | 2,063 | ||||||||||||||||||||||||||||||||||||
Other asset-backed | — | 509 | 446 | 955 | ||||||||||||||||||||||||||||||||||||
Total asset-backed | — | 7,061 | 928 | 7,989 | ||||||||||||||||||||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 116 | 28 | — | 144 | ||||||||||||||||||||||||||||||||||||
Foreign government | 81 | 462 | — | 543 | ||||||||||||||||||||||||||||||||||||
Redeemable preferred stock | 45 | 57 | — | 102 | ||||||||||||||||||||||||||||||||||||
Total fixed maturity securities | 275 | 39,755 | 1,203 | 41,233 | ||||||||||||||||||||||||||||||||||||
Equity securities | 126 | 48 | 11 | 185 | ||||||||||||||||||||||||||||||||||||
Other invested assets | — | 54 | — | 54 | ||||||||||||||||||||||||||||||||||||
Short term investments | 769 | 563 | — | 1,332 | ||||||||||||||||||||||||||||||||||||
Life settlement contracts, included in Other assets | — | — | 88 | 88 | ||||||||||||||||||||||||||||||||||||
Separate account business | 9 | 171 | 1 | 181 | ||||||||||||||||||||||||||||||||||||
Total assets | $ | 1,179 | $ | 40,591 | $ | 1,303 | $ | 43,073 | ||||||||||||||||||||||||||||||||
Table of reconciliation for assets and liablities measured at fair value on a recurring basis using significant unobservable inputs | The tables below present a reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2014 and 2013. | |||||||||||||||||||||||||||||||||||||||
Level 3 | Balance at | Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss)* | Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss) | Purchases | Sales | Settlements | Transfers into | Transfers out | Balance at | Unrealized gains (losses) on Level 3 assets and liabilities held at December 31, 2014 recognized in net income (loss)* | ||||||||||||||||||||||||||||||
(In millions) | January 1, | Level 3 | of Level 3 | December 31, | ||||||||||||||||||||||||||||||||||||
2014 | 2014 | |||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||
Corporate and other bonds | $ | 204 | $ | 2 | $ | (1 | ) | $ | 33 | $ | (23 | ) | $ | (16 | ) | $ | 18 | $ | (55 | ) | $ | 162 | $ | — | ||||||||||||||||
States, municipalities and political subdivisions | 71 | 1 | 4 | 14 | (10 | ) | — | 14 | — | 94 | — | |||||||||||||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed | 331 | (21 | ) | 61 | 94 | (174 | ) | (72 | ) | 32 | (62 | ) | 189 | — | ||||||||||||||||||||||||||
Commercial mortgage-backed | 151 | 7 | (6 | ) | 28 | (60 | ) | (29 | ) | 43 | (51 | ) | 83 | — | ||||||||||||||||||||||||||
Other asset-backed | 446 | 2 | (6 | ) | 488 | (111 | ) | (117 | ) | — | (47 | ) | 655 | (1 | ) | |||||||||||||||||||||||||
Total asset-backed | 928 | (12 | ) | 49 | 610 | (345 | ) | (218 | ) | 75 | (160 | ) | 927 | (1 | ) | |||||||||||||||||||||||||
Total fixed maturity securities | 1,203 | (9 | ) | 52 | 657 | (378 | ) | (234 | ) | 107 | (215 | ) | 1,183 | (1 | ) | |||||||||||||||||||||||||
Equity securities | 11 | 3 | (6 | ) | 16 | (8 | ) | — | — | — | 16 | — | ||||||||||||||||||||||||||||
Life settlement contracts | 88 | 33 | — | — | — | (39 | ) | — | — | 82 | 8 | |||||||||||||||||||||||||||||
Separate account business | 1 | — | — | — | — | — | — | (1 | ) | — | — | |||||||||||||||||||||||||||||
Total | $ | 1,303 | $ | 27 | $ | 46 | $ | 673 | $ | (386 | ) | $ | (273 | ) | $ | 107 | $ | (216 | ) | $ | 1,281 | $ | 7 | |||||||||||||||||
Level 3 | Balance at | Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss)* | Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss) | Purchases | Sales | Settlements | Transfers into | Transfers out | Balance at | Unrealized gains (losses) on Level 3 assets and liabilities held at December 31, 2013 recognized in net income (loss)* | ||||||||||||||||||||||||||||||
(In millions) | January 1, | Level 3 | of Level 3 | December 31, | ||||||||||||||||||||||||||||||||||||
2013 | 2013 | |||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||
Corporate and other bonds | $ | 219 | $ | 3 | $ | — | $ | 142 | $ | (116 | ) | $ | (44 | ) | $ | 51 | $ | (51 | ) | $ | 204 | $ | (2 | ) | ||||||||||||||||
States, municipalities and political subdivisions | 96 | (2 | ) | 4 | 122 | (79 | ) | (61 | ) | 18 | (27 | ) | 71 | — | ||||||||||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed | 413 | 4 | (14 | ) | 116 | (10 | ) | (75 | ) | 4 | (107 | ) | 331 | (3 | ) | |||||||||||||||||||||||||
Commercial mortgage-backed | 129 | — | 11 | 107 | (3 | ) | (11 | ) | 21 | (103 | ) | 151 | — | |||||||||||||||||||||||||||
Other asset-backed | 368 | 5 | (4 | ) | 314 | (197 | ) | (35 | ) | — | (5 | ) | 446 | (2 | ) | |||||||||||||||||||||||||
Total asset-backed | 910 | 9 | (7 | ) | 537 | (210 | ) | (121 | ) | 25 | (215 | ) | 928 | (5 | ) | |||||||||||||||||||||||||
Redeemable preferred stock | 26 | (1 | ) | — | — | — | (25 | ) | — | — | — | — | ||||||||||||||||||||||||||||
Total fixed maturity securities | 1,251 | 9 | (3 | ) | 801 | (405 | ) | (251 | ) | 94 | (293 | ) | 1,203 | (7 | ) | |||||||||||||||||||||||||
Equity securities | 34 | (27 | ) | 3 | 2 | — | — | — | (1 | ) | 11 | (27 | ) | |||||||||||||||||||||||||||
Other invested assets, including derivatives, net | — | — | — | — | (1 | ) | 1 | — | — | — | — | |||||||||||||||||||||||||||||
Short term investments | 6 | — | — | — | (6 | ) | — | — | — | — | — | |||||||||||||||||||||||||||||
Life settlement contracts | 100 | 13 | — | — | — | (25 | ) | — | — | 88 | (2 | ) | ||||||||||||||||||||||||||||
Separate account business | 2 | — | — | 1 | (2 | ) | — | — | — | 1 | — | |||||||||||||||||||||||||||||
Total | $ | 1,393 | $ | (5 | ) | $ | — | $ | 804 | $ | (414 | ) | $ | (275 | ) | $ | 94 | $ | (294 | ) | $ | 1,303 | $ | (36 | ) | |||||||||||||||
Quantitative information about significant unobservable inputs in the fair value measurement of level 3 assets | The table below presents quantitative information about the significant unobservable inputs utilized by the Company in the fair value measurements of Level 3 assets. Valuations for assets and liabilities not presented in the table below are primarily based on broker/dealer quotes for which there is a lack of transparency as to inputs used to develop the valuations. The quantitative detail of these unobservable inputs is neither provided nor reasonably available to the Company. | |||||||||||||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||||||||||||||
Assets | Fair Value | Valuation Technique(s) | Unobservable Input(s) | Range | ||||||||||||||||||||||||||||||||||||
(In millions) | (Weighted Average) | |||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | $ | 101 | Discounted cash flow | Credit spread | 2% - 13% (3%) | |||||||||||||||||||||||||||||||||||
Equity securities | 16 | Market approach | Private offering price | $12 - $4,391 per share ($600) | ||||||||||||||||||||||||||||||||||||
Life settlement contracts | 82 | Discounted cash flow | Discount rate risk premium | 9% | ||||||||||||||||||||||||||||||||||||
Mortality assumption | 55% - 1676% (163%) | |||||||||||||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||
Assets | Fair Value | Valuation Technique(s) | Unobservable Input(s) | Range | ||||||||||||||||||||||||||||||||||||
(In millions) | (Weighted Average) | |||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | $ | 142 | Discounted cash flow | Credit spread | 2% - 20% (4%) | |||||||||||||||||||||||||||||||||||
Equity securities | 10 | Market approach | Private offering price | $360 - $4,268 per share ($1,148) | ||||||||||||||||||||||||||||||||||||
Life settlement contracts | 88 | Discounted cash flow | Discount rate risk premium | 9% | ||||||||||||||||||||||||||||||||||||
Mortality assumption | 70% -743% (192%) | |||||||||||||||||||||||||||||||||||||||
Carrying amount and estimated fair value of financial instrument assets and liabilities not measured at fair value | The carrying amount and estimated fair value of the Company's financial instrument assets and liabilities which are not measured at fair value on the Consolidated Balance Sheets are listed in the tables below. | |||||||||||||||||||||||||||||||||||||||
December 31, 2014 | Carrying | Estimated Fair Value | ||||||||||||||||||||||||||||||||||||||
(In millions) | Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||
Financial assets | ||||||||||||||||||||||||||||||||||||||||
Notes receivable for the issuance of common stock | $ | 1 | $ | — | $ | — | $ | 1 | $ | 1 | ||||||||||||||||||||||||||||||
Mortgage loans | 588 | — | — | 608 | 608 | |||||||||||||||||||||||||||||||||||
Financial liabilities | ||||||||||||||||||||||||||||||||||||||||
Long term debt | $ | 2,559 | $ | — | $ | 2,883 | $ | — | $ | 2,883 | ||||||||||||||||||||||||||||||
December 31, 2013 | Carrying | Estimated Fair Value | ||||||||||||||||||||||||||||||||||||||
(In millions) | Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||
Financial assets | ||||||||||||||||||||||||||||||||||||||||
Notes receivable for the issuance of common stock | $ | 23 | $ | — | $ | — | $ | 23 | $ | 23 | ||||||||||||||||||||||||||||||
Mortgage loans | 508 | — | — | 515 | 515 | |||||||||||||||||||||||||||||||||||
Financial liabilities | ||||||||||||||||||||||||||||||||||||||||
Premium deposits and annuity contracts | $ | 57 | $ | — | $ | — | $ | 58 | $ | 58 | ||||||||||||||||||||||||||||||
Short term debt | 549 | — | 575 | — | 575 | |||||||||||||||||||||||||||||||||||
Long term debt | 2,011 | — | 2,328 | — | 2,328 | |||||||||||||||||||||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Reconcilliation between the Company's federal income tax (expense) benefit at statutory rates and the recorded income tax (expense) benefit | Tax Reconciliation | |||||||||||
Years ended December 31 | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Income tax expense at statutory rates | $ | (423 | ) | $ | (447 | ) | $ | (301 | ) | |||
Tax benefit from tax exempt income | 119 | 97 | 84 | |||||||||
Foreign taxes and credits | (6 | ) | (1 | ) | (13 | ) | ||||||
Other tax expense | (9 | ) | (10 | ) | (9 | ) | ||||||
Income tax expense | $ | (319 | ) | $ | (361 | ) | $ | (239 | ) | |||
Current and deferred components of the Company's income tax (expense) benefit | Current and Deferred Taxes | |||||||||||
Years ended December 31 | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Current tax expense | $ | (318 | ) | $ | (292 | ) | $ | (94 | ) | |||
Deferred tax expense | (1 | ) | (69 | ) | (145 | ) | ||||||
Total income tax expense | $ | (319 | ) | $ | (361 | ) | $ | (239 | ) | |||
Significant components of the Company's deferred tax assets and liabilities | Components of Net Deferred Tax Asset | |||||||||||
31-Dec | ||||||||||||
(In millions) | 2014 | 2013 | ||||||||||
Deferred Tax Assets: | ||||||||||||
Insurance reserves: | ||||||||||||
Property and casualty claim and claim adjustment expense reserves | $ | 265 | $ | 289 | ||||||||
Unearned premium reserves | 187 | 178 | ||||||||||
Receivables | 35 | 50 | ||||||||||
Employee benefits | 289 | 187 | ||||||||||
Life settlement contracts | 46 | 46 | ||||||||||
Deferred retroactive reinsurance benefit | 61 | 66 | ||||||||||
Other assets | 138 | 149 | ||||||||||
Gross deferred tax assets | 1,021 | 965 | ||||||||||
Deferred Tax Liabilities: | ||||||||||||
Investment valuation differences | 50 | 68 | ||||||||||
Deferred acquisition costs | 226 | 232 | ||||||||||
Net unrealized gains | 489 | 383 | ||||||||||
Other liabilities | 65 | 62 | ||||||||||
Gross deferred tax liabilities | 830 | 745 | ||||||||||
Net deferred tax asset | $ | 191 | $ | 220 | ||||||||
Claim_and_Claim_Adjustment_Exp1
Claim and Claim Adjustment Expense Reserves (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Claim and Claim Adjustment Expense Reserves [Abstract] | ||||||||||||||||||||||||
Reconciliation of claim and claim adjustment expense reserves | Reconciliation of Claim and Claim Adjustment Expense Reserves | |||||||||||||||||||||||
As of and for the years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Reserves, beginning of year: | ||||||||||||||||||||||||
Gross | $ | 24,089 | $ | 24,763 | $ | 24,303 | ||||||||||||||||||
Ceded | 4,972 | 5,126 | 5,020 | |||||||||||||||||||||
Net reserves, beginning of year | 19,117 | 19,637 | 19,283 | |||||||||||||||||||||
Change in net reserves due to acquisition (disposition) of subsidiaries | (13 | ) | — | 291 | ||||||||||||||||||||
Net incurred claim and claim adjustment expenses: | ||||||||||||||||||||||||
Provision for insured events of current year | 5,043 | 5,114 | 5,273 | |||||||||||||||||||||
Decrease in provision for insured events of prior years | (36 | ) | (115 | ) | (182 | ) | ||||||||||||||||||
Amortization of discount | 161 | 154 | 145 | |||||||||||||||||||||
Total net incurred (a) | 5,168 | 5,153 | 5,236 | |||||||||||||||||||||
Net payments attributable to: | ||||||||||||||||||||||||
Current year events | (945 | ) | (981 | ) | (988 | ) | ||||||||||||||||||
Prior year events | (4,355 | ) | (4,588 | ) | (4,280 | ) | ||||||||||||||||||
Total net payments | (5,300 | ) | (5,569 | ) | (5,268 | ) | ||||||||||||||||||
Foreign currency translation adjustment and other | (45 | ) | (104 | ) | 95 | |||||||||||||||||||
Net reserves, end of year | 18,927 | 19,117 | 19,637 | |||||||||||||||||||||
Ceded reserves, end of year | 4,344 | 4,972 | 5,126 | |||||||||||||||||||||
Gross reserves, end of year | $ | 23,271 | $ | 24,089 | $ | 24,763 | ||||||||||||||||||
(a) | Total net incurred above does not agree to Insurance claims and policyholders' benefits as reflected on the Consolidated Statements of Operations due to amounts related to retroactive reinsurance deferred gain accounting, uncollectible reinsurance and loss deductible receivables, and benefit expenses related to future policy benefits and policyholders' funds, which are not reflected in the table above. | |||||||||||||||||||||||
Net prior year claim and claim adjustment expense reserve development | Reserve Development | |||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Property and casualty reserve development | $ | (39 | ) | $ | (115 | ) | $ | (180 | ) | |||||||||||||||
Life reserve development in life company | 3 | — | (2 | ) | ||||||||||||||||||||
Total | $ | (36 | ) | $ | (115 | ) | $ | (182 | ) | |||||||||||||||
Gross and net carried claim and claim adjustment expense reserves | Gross and Net Carried Claim and Claim Adjustment Expense Reserves | |||||||||||||||||||||||
December 31, 2014 | Specialty | Commercial | International | Life & | Corporate | Total | ||||||||||||||||||
(In millions) | Group Non-Core | & Other Non-Core | ||||||||||||||||||||||
Gross Case Reserves | $ | 2,136 | $ | 5,298 | $ | 752 | $ | 2,881 | $ | 1,189 | $ | 12,256 | ||||||||||||
Gross IBNR Reserves | 4,093 | 4,216 | 689 | 302 | 1,715 | 11,015 | ||||||||||||||||||
Total Gross Carried Claim and Claim Adjustment Expense Reserves | $ | 6,229 | $ | 9,514 | $ | 1,441 | $ | 3,183 | $ | 2,904 | $ | 23,271 | ||||||||||||
Net Case Reserves | $ | 1,929 | $ | 4,947 | $ | 598 | $ | 2,572 | $ | 144 | $ | 10,190 | ||||||||||||
Net IBNR Reserves | 3,726 | 3,906 | 663 | 271 | 171 | 8,737 | ||||||||||||||||||
Total Net Carried Claim and Claim Adjustment Expense Reserves | $ | 5,655 | $ | 8,853 | $ | 1,261 | $ | 2,843 | $ | 315 | $ | 18,927 | ||||||||||||
December 31, 2013 | Specialty | Commercial | International | Life & | Corporate | Total | ||||||||||||||||||
(In millions) | Group Non-Core | & Other Non-Core | ||||||||||||||||||||||
Gross Case Reserves | $ | 2,001 | $ | 5,570 | $ | 803 | $ | 2,748 | $ | 1,140 | $ | 12,262 | ||||||||||||
Gross IBNR Reserves | 4,057 | 4,521 | 772 | 310 | 2,167 | 11,827 | ||||||||||||||||||
Total Gross Carried Claim and Claim Adjustment Expense Reserves | $ | 6,058 | $ | 10,091 | $ | 1,575 | $ | 3,058 | $ | 3,307 | $ | 24,089 | ||||||||||||
Net Case Reserves | $ | 1,793 | $ | 5,119 | $ | 629 | $ | 2,352 | $ | 283 | $ | 10,176 | ||||||||||||
Net IBNR Reserves | 3,789 | 3,992 | 705 | 271 | 184 | 8,941 | ||||||||||||||||||
Total Net Carried Claim and Claim Adjustment Expense Reserves | $ | 5,582 | $ | 9,111 | $ | 1,334 | $ | 2,623 | $ | 467 | $ | 19,117 | ||||||||||||
Net prior year development | Net Prior Year Development | |||||||||||||||||||||||
Year ended December 31, 2014 | ||||||||||||||||||||||||
(In millions) | Specialty | Commercial | International | Corporate | Total | |||||||||||||||||||
& Other | ||||||||||||||||||||||||
Non-Core | ||||||||||||||||||||||||
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development | $ | (136 | ) | $ | 176 | $ | (59 | ) | $ | (2 | ) | $ | (21 | ) | ||||||||||
Pretax (favorable) unfavorable premium development | (13 | ) | (20 | ) | 2 | (1 | ) | (32 | ) | |||||||||||||||
Total pretax (favorable) unfavorable net prior year development | $ | (149 | ) | $ | 156 | $ | (57 | ) | $ | (3 | ) | $ | (53 | ) | ||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||||||
(In millions) | Specialty | Commercial | International | Corporate | Total | |||||||||||||||||||
& Other | ||||||||||||||||||||||||
Non-Core | ||||||||||||||||||||||||
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development | $ | (196 | ) | $ | 122 | $ | (38 | ) | $ | (6 | ) | $ | (118 | ) | ||||||||||
Pretax (favorable) unfavorable premium development | (14 | ) | (8 | ) | (21 | ) | 1 | (42 | ) | |||||||||||||||
Total pretax (favorable) unfavorable net prior year development | $ | (210 | ) | $ | 114 | $ | (59 | ) | $ | (5 | ) | $ | (160 | ) | ||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||||||
(In millions) | Specialty | Commercial | International | Corporate | Total | |||||||||||||||||||
& Other | ||||||||||||||||||||||||
Non-Core | ||||||||||||||||||||||||
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development | $ | (93 | ) | $ | (25 | ) | $ | (74 | ) | $ | (13 | ) | $ | (205 | ) | |||||||||
Pretax (favorable) unfavorable premium development | (14 | ) | (36 | ) | 3 | 1 | (46 | ) | ||||||||||||||||
Total pretax (favorable) unfavorable net prior year development | $ | (107 | ) | $ | (61 | ) | $ | (71 | ) | $ | (12 | ) | $ | (251 | ) | |||||||||
Net prior year claim and allocated claim adjustment expense reserve development for Specialty segment | The following table provides further detail of the net prior year claim and allocated claim adjustment expense reserve development (development) recorded for the Specialty segment for the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development: | ||||||||||||||||||||||||
Medical Professional Liability | $ | 39 | $ | (27 | ) | $ | (34 | ) | ||||||||||||||||
Other Professional Liability and Management Liability | (87 | ) | (73 | ) | 19 | |||||||||||||||||||
Surety | (82 | ) | (74 | ) | (63 | ) | ||||||||||||||||||
Warranty | (2 | ) | (3 | ) | (5 | ) | ||||||||||||||||||
Other | (4 | ) | (19 | ) | (10 | ) | ||||||||||||||||||
Total pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development | $ | (136 | ) | $ | (196 | ) | $ | (93 | ) | |||||||||||||||
Net prior year claim and allocated claim adjustment expense reserve development for Commercial segment | The following table provides further detail of the development recorded for the Commercial segment for the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development: | ||||||||||||||||||||||||
Commercial Auto | $ | 31 | $ | 18 | $ | 25 | ||||||||||||||||||
General Liability | 45 | 64 | (66 | ) | ||||||||||||||||||||
Workers' Compensation | 139 | 91 | 15 | |||||||||||||||||||||
Property and Other | (39 | ) | (51 | ) | 1 | |||||||||||||||||||
Total pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development | $ | 176 | $ | 122 | $ | (25 | ) | |||||||||||||||||
Net prior year claim and allocated claim adjustment expense reserve development for International segment | The following table provides further detail of the development recorded for the International segment for the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development: | ||||||||||||||||||||||||
Medical Professional Liability | $ | (7 | ) | $ | (7 | ) | $ | 1 | ||||||||||||||||
Other Professional Liability | (26 | ) | (30 | ) | (41 | ) | ||||||||||||||||||
Liability | (13 | ) | (8 | ) | (2 | ) | ||||||||||||||||||
Property & Marine | (14 | ) | 13 | (30 | ) | |||||||||||||||||||
Other | (9 | ) | (17 | ) | (2 | ) | ||||||||||||||||||
Commutations | 10 | 11 | — | |||||||||||||||||||||
Total pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development | $ | (59 | ) | $ | (38 | ) | $ | (74 | ) | |||||||||||||||
Impact of loss portfolio transfer on the consolidated statement of operations | The following table displays the impact of the Loss Portfolio Transfer on the Consolidated Statements of Operations. | |||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Net A&EP adverse development before consideration of LPT | $ | — | $ | 363 | $ | 261 | ||||||||||||||||||
Provision for uncollectible third-party reinsurance on A&EP | — | 140 | — | |||||||||||||||||||||
Additional amounts ceded under LPT | — | 503 | 261 | |||||||||||||||||||||
Retroactive reinsurance benefit recognized | (13 | ) | (314 | ) | (261 | ) | ||||||||||||||||||
Pretax impact of unrecognized deferred retroactive reinsurance benefit | $ | (13 | ) | $ | 189 | $ | — | |||||||||||||||||
Reinsurance_Tables
Reinsurance (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Reinsurance Disclosures [Abstract] | |||||||||||||||||||
Components of Reinsurance Receivables | Components of Reinsurance Receivables | ||||||||||||||||||
31-Dec | |||||||||||||||||||
(In millions) | 2014 | 2013 | |||||||||||||||||
Reinsurance receivables related to insurance reserves: | |||||||||||||||||||
Ceded claim and claim adjustment expenses | $ | 4,344 | $ | 4,972 | |||||||||||||||
Ceded future policy benefits | 185 | 733 | |||||||||||||||||
Ceded policyholders' funds | — | 35 | |||||||||||||||||
Reinsurance receivables related to paid losses | 213 | 348 | |||||||||||||||||
Reinsurance receivables | 4,742 | 6,088 | |||||||||||||||||
Allowance for uncollectible reinsurance | (48 | ) | (71 | ) | |||||||||||||||
Reinsurance receivables, net of allowance for uncollectible reinsurance | $ | 4,694 | $ | 6,017 | |||||||||||||||
Components of Earned and Written Premiums | Components of Earned Premiums | ||||||||||||||||||
(In millions) | Direct | Assumed | Ceded | Net | Assumed/ | ||||||||||||||
Net % | |||||||||||||||||||
2014 Earned Premiums | |||||||||||||||||||
Property and casualty | $ | 9,452 | $ | 277 | $ | 3,073 | $ | 6,656 | 4.2 | % | |||||||||
Accident and health | 508 | 48 | — | 556 | 8.6 | % | |||||||||||||
Total earned premiums | $ | 9,960 | $ | 325 | $ | 3,073 | $ | 7,212 | 4.5 | % | |||||||||
2013 Earned Premiums | |||||||||||||||||||
Property and casualty | $ | 9,063 | $ | 258 | $ | 2,609 | $ | 6,712 | 3.8 | % | |||||||||
Accident and health | 511 | 48 | — | 559 | 8.6 | % | |||||||||||||
Total earned premiums | $ | 9,574 | $ | 306 | $ | 2,609 | $ | 7,271 | 4.2 | % | |||||||||
2012 Earned Premiums | |||||||||||||||||||
Property and casualty | $ | 8,354 | $ | 197 | $ | 2,229 | $ | 6,322 | 3.1 | % | |||||||||
Accident and health | 512 | 47 | — | 559 | 8.4 | % | |||||||||||||
Total earned premiums | $ | 8,866 | $ | 244 | $ | 2,229 | $ | 6,881 | 3.5 | % | |||||||||
Components of Written Premiums | |||||||||||||||||||
(In millions) | Direct | Assumed | Ceded | Net | Assumed/ | ||||||||||||||
Net % | |||||||||||||||||||
2014 Written Premiums | |||||||||||||||||||
Property and casualty | $ | 9,283 | $ | 276 | $ | 3,024 | $ | 6,535 | 4.2 | % | |||||||||
Accident and health | 504 | 49 | — | 553 | 8.9 | % | |||||||||||||
Total written premiums | $ | 9,787 | $ | 325 | $ | 3,024 | $ | 7,088 | 4.6 | % | |||||||||
2013 Written Premiums | |||||||||||||||||||
Property and casualty | $ | 9,103 | $ | 249 | $ | 2,556 | $ | 6,796 | 3.7 | % | |||||||||
Accident and health | 505 | 47 | — | 552 | 8.5 | % | |||||||||||||
Total written premiums | $ | 9,608 | $ | 296 | $ | 2,556 | $ | 7,348 | 4 | % | |||||||||
2012 Written Premiums | |||||||||||||||||||
Property and casualty | $ | 8,467 | $ | 169 | $ | 2,225 | $ | 6,411 | 2.6 | % | |||||||||
Accident and health | 506 | 47 | — | 553 | 8.5 | % | |||||||||||||
Total written premiums | $ | 8,973 | $ | 216 | $ | 2,225 | $ | 6,964 | 3.1 | % | |||||||||
Debt_Tables
Debt (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Schedule of debt instruments | ||||||||
31-Dec | ||||||||
(In millions) | 2014 | 2013 | ||||||
Short term debt: | ||||||||
Senior notes of CNAF, 5.850%, face amount of $549, due December 15, 2014 | $ | — | $ | 549 | ||||
Long term debt: | ||||||||
Senior notes of CNAF: | ||||||||
6.500%, face amount of $350, due August 15, 2016 | 349 | 349 | ||||||
6.950%, face amount of $150, due January 15, 2018 | 150 | 149 | ||||||
7.350%, face amount of $350, due November 15, 2019 | 348 | 348 | ||||||
5.875%, face amount of $500, due August 15, 2020 | 497 | 497 | ||||||
5.750%, face amount of $400, due August 15, 2021 | 397 | 397 | ||||||
3.950%, face amount of $550, due May 15, 2024 | 547 | — | ||||||
Debenture of CNAF, 7.250%, face amount of $243, due November 15, 2023 | 241 | 241 | ||||||
Subordinated variable rate debt of Hardy, face amount of $30, due September 15, 2036 | 30 | 30 | ||||||
Total long term debt | 2,559 | 2,011 | ||||||
Total debt | $ | 2,559 | $ | 2,560 | ||||
Maturity of debt | Maturity of Debt | |||||||
(In millions) | ||||||||
2015 | $ | — | ||||||
2016 | 350 | |||||||
2017 | — | |||||||
2018 | 150 | |||||||
2019 | 350 | |||||||
Thereafter | 1,723 | |||||||
Less discount | (14 | ) | ||||||
Total | $ | 2,559 | ||||||
Benefit_Plans_Tables
Benefit Plans (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||
Funded status | Funded Status | |||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Benefit obligation at January 1 | $ | 2,943 | $ | 3,271 | $ | 40 | $ | 47 | ||||||||||||||||
Changes in benefit obligation: | ||||||||||||||||||||||||
Service cost | 9 | 12 | — | 1 | ||||||||||||||||||||
Interest cost | 132 | 121 | 1 | 1 | ||||||||||||||||||||
Participants' contributions | — | — | 5 | 5 | ||||||||||||||||||||
Plan amendments | (3 | ) | — | (7 | ) | — | ||||||||||||||||||
Actuarial (gain) loss | 367 | (289 | ) | 1 | (3 | ) | ||||||||||||||||||
Benefits paid | (165 | ) | (165 | ) | (11 | ) | (12 | ) | ||||||||||||||||
Settlements | (257 | ) | (8 | ) | — | — | ||||||||||||||||||
Foreign currency translation and other | (7 | ) | 1 | — | 1 | |||||||||||||||||||
Benefit obligation at December 31 | 3,019 | 2,943 | 29 | 40 | ||||||||||||||||||||
Fair value of plan assets at January 1 | 2,656 | 2,425 | — | — | ||||||||||||||||||||
Change in plan assets: | ||||||||||||||||||||||||
Actual return on plan assets | 216 | 311 | — | — | ||||||||||||||||||||
Company contributions | 12 | 92 | 6 | 7 | ||||||||||||||||||||
Participants' contributions | — | — | 5 | 5 | ||||||||||||||||||||
Benefits paid | (165 | ) | (165 | ) | (11 | ) | (12 | ) | ||||||||||||||||
Settlements | (257 | ) | (8 | ) | — | — | ||||||||||||||||||
Foreign currency translation and other | (6 | ) | 1 | — | — | |||||||||||||||||||
Fair value of plan assets at December 31 | 2,456 | 2,656 | — | — | ||||||||||||||||||||
Funded status | $ | (563 | ) | $ | (287 | ) | $ | (29 | ) | $ | (40 | ) | ||||||||||||
Amounts recognized on the Consolidated Balance Sheets at December 31: | ||||||||||||||||||||||||
Other assets | $ | 9 | $ | 9 | $ | — | $ | — | ||||||||||||||||
Other liabilities | (572 | ) | (296 | ) | (29 | ) | (40 | ) | ||||||||||||||||
Net amount recognized | $ | (563 | ) | $ | (287 | ) | $ | (29 | ) | $ | (40 | ) | ||||||||||||
Amounts recognized in Accumulated other comprehensive income, not yet recognized in net periodic cost (benefit): | ||||||||||||||||||||||||
Prior service credit | $ | — | $ | — | $ | (9 | ) | $ | (98 | ) | ||||||||||||||
Net actuarial loss | 974 | 745 | 8 | 8 | ||||||||||||||||||||
Net amount recognized | $ | 974 | $ | 745 | $ | (1 | ) | $ | (90 | ) | ||||||||||||||
Components of net periodic cost (benefit) | Net Periodic Cost (Benefit) | |||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Pension cost (benefit) | ||||||||||||||||||||||||
Service cost | $ | 9 | $ | 12 | $ | 12 | ||||||||||||||||||
Interest cost on projected benefit obligation | 132 | 121 | 135 | |||||||||||||||||||||
Expected return on plan assets | (191 | ) | (181 | ) | (171 | ) | ||||||||||||||||||
Amortization of net actuarial loss | 25 | 47 | 39 | |||||||||||||||||||||
Settlement loss | 84 | 3 | — | |||||||||||||||||||||
Net periodic pension cost (benefit) | $ | 59 | $ | 2 | $ | 15 | ||||||||||||||||||
Postretirement cost (benefit) | ||||||||||||||||||||||||
Service cost | $ | — | $ | 1 | $ | — | ||||||||||||||||||
Interest cost on projected benefit obligation | 1 | 1 | 2 | |||||||||||||||||||||
Amortization of prior service credit | (10 | ) | (18 | ) | (18 | ) | ||||||||||||||||||
Amortization of net actuarial loss | 1 | 2 | 1 | |||||||||||||||||||||
Curtailment gain | (86 | ) | — | — | ||||||||||||||||||||
Net periodic postretirement cost (benefit) | $ | (94 | ) | $ | (14 | ) | $ | (15 | ) | |||||||||||||||
Schedule of amounts recognized in Other comprehensive income | The amounts recognized in Other comprehensive income are presented in the following table. | |||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Pension and postretirement benefits | ||||||||||||||||||||||||
Amounts arising during the period | $ | (337 | ) | $ | 422 | $ | (195 | ) | ||||||||||||||||
Curtailment and other | (81 | ) | — | — | ||||||||||||||||||||
Settlement | 84 | — | — | |||||||||||||||||||||
Reclassification adjustment relating to prior service credit | (10 | ) | (18 | ) | (18 | ) | ||||||||||||||||||
Reclassification adjustment relating to actuarial loss | 26 | 49 | 40 | |||||||||||||||||||||
Total increase (decrease) in Other comprehensive income | $ | (318 | ) | $ | 453 | $ | (173 | ) | ||||||||||||||||
Schedule of estimated amounts to be recognized from Accumulated other comprehensive income into net periodic cost (benefit) during next fiscal year | The table below presents the estimated amounts to be recognized from AOCI into net periodic cost (benefit) during 2015. | |||||||||||||||||||||||
(In millions) | Pension | Postretirement Benefits | ||||||||||||||||||||||
Benefits | ||||||||||||||||||||||||
Amortization of prior service credit | $ | — | $ | (2 | ) | |||||||||||||||||||
Amortization of net actuarial loss | 38 | 1 | ||||||||||||||||||||||
Total estimated amounts to be recognized | $ | 38 | $ | (1 | ) | |||||||||||||||||||
Actuarial assumptions for benefit obligations and for net cost or benefit | Actuarial assumptions used for the CNA Retirement Plan and CNA Health and Group Benefits Program to determine benefit obligations are set forth in the following table. | |||||||||||||||||||||||
Actuarial Assumptions for Benefit Obligations | ||||||||||||||||||||||||
31-Dec | 2014 | 2013 | ||||||||||||||||||||||
Pension benefits | ||||||||||||||||||||||||
Discount rate | 3.85 | % | 4.65 | % | ||||||||||||||||||||
Expected long term rate of return | 7.5 | 7.5 | ||||||||||||||||||||||
Rate of compensation increases | 3.92 | 3.99 | ||||||||||||||||||||||
Postretirement benefits | ||||||||||||||||||||||||
Discount rate | 2.5 | % | 3.6 | % | ||||||||||||||||||||
Actuarial assumptions used for the CNA Retirement Plan and CNA Health and Group Benefits Program to determine net cost or benefit are set forth in the following table. | ||||||||||||||||||||||||
Actuarial Assumptions for Net Cost or Benefit | ||||||||||||||||||||||||
Years ended December 31 | 2014 | 2013 | 2012 | |||||||||||||||||||||
Pension benefits | ||||||||||||||||||||||||
Discount rate | 4.65 | % | 3.8 | % | 4.6 | % | ||||||||||||||||||
Expected long term rate of return | 7.5 | 7.75 | 8 | |||||||||||||||||||||
Rate of compensation increases | 3.99 | 4.066 | 4.125 | |||||||||||||||||||||
Postretirement benefits | ||||||||||||||||||||||||
Discount rate | 3.600%/3.100% | 2.8 | % | 3.75 | % | |||||||||||||||||||
Fair value of plan assets measured on a recurring basis | Pension plan assets measured at fair value on a recurring basis as well as cash are summarized below. | |||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | Total Assets | ||||||||||||||||||||
at Fair Value | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||
Corporate and other bonds | $ | — | $ | 463 | $ | 15 | $ | 478 | ||||||||||||||||
States, municipalities and political subdivisions | — | 80 | — | 80 | ||||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||
Residential mortgage-backed | — | 123 | — | 123 | ||||||||||||||||||||
Commercial mortgage-backed | — | 75 | — | 75 | ||||||||||||||||||||
Other asset-backed | — | 12 | — | 12 | ||||||||||||||||||||
Total asset-backed | — | 210 | — | 210 | ||||||||||||||||||||
U.S. Treasury and obligations of government-sponsored enterprises | 25 | — | — | 25 | ||||||||||||||||||||
Total fixed maturity securities | 25 | 753 | 15 | 793 | ||||||||||||||||||||
Equity securities | 389 | 118 | — | 507 | ||||||||||||||||||||
Derivative financial instruments | 1 | — | — | 1 | ||||||||||||||||||||
Short term investments | 33 | 101 | — | 134 | ||||||||||||||||||||
Limited partnerships: | ||||||||||||||||||||||||
Hedge funds | — | 562 | 303 | 865 | ||||||||||||||||||||
Private equity | — | — | 113 | 113 | ||||||||||||||||||||
Total limited partnerships | — | 562 | 416 | 978 | ||||||||||||||||||||
Other assets | — | 30 | — | 30 | ||||||||||||||||||||
Cash | 13 | — | — | 13 | ||||||||||||||||||||
Total assets | $ | 461 | $ | 1,564 | $ | 431 | $ | 2,456 | ||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | Total Assets | ||||||||||||||||||||
at Fair Value | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||
Corporate and other bonds | $ | — | $ | 505 | $ | 15 | $ | 520 | ||||||||||||||||
States, municipalities and political subdivisions | — | 73 | — | 73 | ||||||||||||||||||||
Asset-backed: | ||||||||||||||||||||||||
Residential mortgage-backed | — | 130 | — | 130 | ||||||||||||||||||||
Commercial mortgage-backed | — | 106 | — | 106 | ||||||||||||||||||||
Other asset-backed | — | 12 | — | 12 | ||||||||||||||||||||
Total asset-backed | — | 248 | — | 248 | ||||||||||||||||||||
Total fixed maturity securities | — | 826 | 15 | 841 | ||||||||||||||||||||
Equity securities | 480 | 117 | 8 | 605 | ||||||||||||||||||||
Derivative financial instruments | 2 | — | — | 2 | ||||||||||||||||||||
Short term investments | 45 | 49 | — | 94 | ||||||||||||||||||||
Limited partnerships: | ||||||||||||||||||||||||
Hedge funds | — | 647 | 322 | 969 | ||||||||||||||||||||
Private equity | — | — | 114 | 114 | ||||||||||||||||||||
Total limited partnerships | — | 647 | 436 | 1,083 | ||||||||||||||||||||
Other assets | — | 31 | — | 31 | ||||||||||||||||||||
Total assets | $ | 527 | $ | 1,670 | $ | 459 | $ | 2,656 | ||||||||||||||||
Reconciliation of level 3 plan assets | The tables below present a reconciliation for all pension plan assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2014 and 2013. | |||||||||||||||||||||||
Level 3 | Balance at January 1, 2014 | Actual return on assets still held at December 31, 2014 | Actual return on assets sold during the year ended December 31, 2014 | Purchases, sales and settlements | Net transfers into (out of) Level 3 | Balance at December 31, 2014 | ||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||
Corporate and other bonds | $ | 15 | $ | — | $ | — | $ | — | $ | — | $ | 15 | ||||||||||||
Equity securities | 8 | — | — | (8 | ) | — | — | |||||||||||||||||
Limited partnerships: | ||||||||||||||||||||||||
Hedge funds | 322 | 19 | — | (38 | ) | — | 303 | |||||||||||||||||
Private equity | 114 | 19 | — | (20 | ) | — | 113 | |||||||||||||||||
Total limited partnerships | 436 | 38 | — | (58 | ) | — | 416 | |||||||||||||||||
Total | $ | 459 | $ | 38 | $ | — | $ | (66 | ) | $ | — | $ | 431 | |||||||||||
Level 3 | Balance at January 1, 2013 | Actual return on assets still held at December 31, 2013 | Actual return on assets sold during the year ended December 31, 2013 | Purchases, sales and settlements | Net transfers into (out of) Level 3 | Balance at December 31, 2013 | ||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||
Corporate and other bonds | $ | 11 | $ | (1 | ) | $ | — | $ | 5 | $ | — | $ | 15 | |||||||||||
Equity securities | 5 | 3 | — | — | — | 8 | ||||||||||||||||||
Limited partnerships: | ||||||||||||||||||||||||
Hedge funds | 359 | 56 | — | (77 | ) | (16 | ) | 322 | ||||||||||||||||
Private equity | 62 | — | — | 52 | — | 114 | ||||||||||||||||||
Total limited partnerships | 421 | 56 | — | (25 | ) | (16 | ) | 436 | ||||||||||||||||
Investment contracts with insurance company | 10 | — | — | (10 | ) | — | — | |||||||||||||||||
Total | $ | 447 | $ | 58 | $ | — | $ | (30 | ) | $ | (16 | ) | $ | 459 | ||||||||||
Estimated future minimum benefit payments to participants | Estimated Future Minimum Benefit Payments to Participants | |||||||||||||||||||||||
(In millions) | Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||
2015 | $ | 179 | $ | 5 | ||||||||||||||||||||
2016 | 181 | 4 | ||||||||||||||||||||||
2017 | 180 | 4 | ||||||||||||||||||||||
2018 | 184 | 4 | ||||||||||||||||||||||
2019 | 185 | 3 | ||||||||||||||||||||||
2020-2024 | 936 | 9 | ||||||||||||||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||
Restricted shares, performance-based restricted share units and performance share unit activity | The following table presents activity for non-vested restricted shares, performance-based RSUs and performance share units under the Plan in 2014. | ||||||
Number of Awards | Weighted-Average Grant Date Fair Value | ||||||
Balance at January 1, 2014 | 847,674 | $ | 29.61 | ||||
Awards granted | 261,273 | 41.01 | |||||
Awards vested | (156,332 | ) | 28.42 | ||||
Awards forfeited, canceled or expired | (91,002 | ) | 32.09 | ||||
Performance-based adjustment | 52,568 | 28.5 | |||||
Balance at December 31, 2014 | 914,181 | $ | 32.76 | ||||
Other_Intangible_Assets_Tables
Other Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Intangible Assets, Gross (Excluding Goodwill) [Abstract] | ||||||||||||||||||
Schedule of Other Intangible Assets | Other intangible assets are presented in the following table. | |||||||||||||||||
31-Dec | 2014 | 2013 | ||||||||||||||||
(In millions) | Economic Useful Life | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | |||||||||||||
Finite-lived intangible assets: | ||||||||||||||||||
Value of business acquired | 1 - 4 years | $ | 60 | $ | 61 | $ | 64 | $ | 63 | |||||||||
Trade name | 8 years | 8 | 3 | 8 | 2 | |||||||||||||
Distribution channel | 15 years | 12 | 2 | 13 | 1 | |||||||||||||
Total finite-lived intangible assets | 80 | 66 | 85 | 66 | ||||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||||||
Syndicate capacity | 55 | 58 | ||||||||||||||||
Agency force | 16 | 16 | ||||||||||||||||
Total indefinite-lived intangible assets | 71 | 74 | ||||||||||||||||
Total other intangible assets | $ | 151 | $ | 66 | $ | 159 | $ | 66 | ||||||||||
Operating_Leases_Commitments_a1
Operating Leases, Commitments and Contingencies, and Guarantees (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Operating Leases, Commitments and Contingencies, and Guarantees [Abstract] | ||||||||
Future minimum lease payments and sublease receipts | Future Minimum Lease Payments and Sublease Receipts | |||||||
(In millions) | Future Minimum Lease Payments | Future Minimum Sublease Receipts | ||||||
2015 | $ | 36 | $ | — | ||||
2016 | 35 | — | ||||||
2017 | 30 | — | ||||||
2018 | 25 | — | ||||||
2019 | 21 | 1 | ||||||
Thereafter | 98 | 1 | ||||||
Total | $ | 245 | $ | 2 | ||||
Stockholders_Equity_and_Statut1
Stockholders' Equity and Statutory Accounting Practices (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Stockholders' Equity and Statutory Accounting Practices [Abstract] | ||||||||||||||||||||
Combined statutory capital and surplus and net income (loss) | Statutory Information | |||||||||||||||||||
Statutory Capital and Surplus | Statutory Net Income (Loss) | |||||||||||||||||||
31-Dec | Years ended December 31 | |||||||||||||||||||
(In millions) | 2014 (a) | 2013 (b) | 2014 (a) | 2013 | 2012 | |||||||||||||||
Combined Continental Casualty Companies | $ | 11,155 | $ | 11,137 | $ | 914 | $ | 913 | $ | 391 | ||||||||||
Life company | 597 | 37 | 48 | 44 | ||||||||||||||||
________________ | ||||||||||||||||||||
(a) | Information derived from the statutory-basis financial statements to be filed with insurance regulators. | |||||||||||||||||||
(b) | Represents the combined statutory surplus of CCC and its subsidiaries, including the life company. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) by Component (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) by Component | The table below displays the changes in Accumulated other comprehensive income (loss) by component for the years ended December 31, 2014 and 2013. | |||||||||||||||||||||||
Net unrealized gains (losses) on investments with OTTI losses | Net unrealized gains (losses) on other investments | Net unrealized gains (losses) on discontinued operations | Pension and postretirement benefits | Cumulative foreign currency translation adjustment | Total | |||||||||||||||||||
Balance at December 31, 2013 | $ | 26 | $ | 692 | $ | — | $ | (426 | ) | $ | 150 | $ | 442 | |||||||||||
Change due to sale of subsidiaries | (5 | ) | (17 | ) | 22 | — | — | — | ||||||||||||||||
Other comprehensive income (loss) before reclassifications | 15 | 295 | 12 | (219 | ) | (95 | ) | 8 | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) after tax (expense) benefit of $0, $(10), $(23), $7, $0 and $(26) | — | 28 | 34 | (12 | ) | — | 50 | |||||||||||||||||
Other comprehensive income (loss) after tax (expense) benefit of $(8), $(122), $15, $111, $0 and $(4) | 15 | 267 | (22 | ) | (207 | ) | (95 | ) | (42 | ) | ||||||||||||||
Balance at December 31, 2014 | $ | 36 | $ | 942 | $ | — | $ | (633 | ) | $ | 55 | $ | 400 | |||||||||||
Net unrealized gains (losses) on investments with OTTI losses | Net unrealized gains (losses) on other investments | Pension and postretirement benefits | Cumulative foreign currency translation adjustment | Total | ||||||||||||||||||||
Balance at December 31, 2012 | $ | 20 | $ | 1,371 | $ | (721 | ) | $ | 161 | $ | 831 | |||||||||||||
Other comprehensive income (loss) before reclassifications | 6 | (658 | ) | 275 | (11 | ) | (388 | ) | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) after tax (expense) benefit of $0, $(10), $11, $0 and $1 | — | 21 | (20 | ) | — | 1 | ||||||||||||||||||
Other comprehensive income (loss) after tax (expense) benefit of $(3), $364, $(158), $0 and $203 | 6 | (679 | ) | 295 | (11 | ) | (389 | ) | ||||||||||||||||
Balance at December 31, 2013 | $ | 26 | $ | 692 | $ | (426 | ) | $ | 150 | $ | 442 | |||||||||||||
Business_Segments_Tables
Business Segments (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||
Significant components of the Company's continuing operations and selected balance sheet items | ||||||||||||||||||||||||||||
Year ended December 31, 2014 | Specialty | Commercial | International | Life & | Corporate | |||||||||||||||||||||||
Group | & Other | |||||||||||||||||||||||||||
(In millions) | Non-Core | Non-Core | Eliminations | Total | ||||||||||||||||||||||||
Net written premiums | $ | 2,839 | $ | 2,817 | $ | 880 | $ | 553 | $ | 1 | $ | (2 | ) | $ | 7,088 | |||||||||||||
Operating revenues | ||||||||||||||||||||||||||||
Net earned premiums | $ | 2,838 | $ | 2,906 | $ | 913 | $ | 556 | $ | 1 | $ | (2 | ) | $ | 7,212 | |||||||||||||
Net investment income | 560 | 723 | 61 | 700 | 23 | — | 2,067 | |||||||||||||||||||||
Other revenues | 295 | 38 | — | 16 | 12 | (5 | ) | 356 | ||||||||||||||||||||
Total operating revenues | 3,693 | 3,667 | 974 | 1,272 | 36 | (7 | ) | 9,635 | ||||||||||||||||||||
Claims, Benefits and Expenses | ||||||||||||||||||||||||||||
Net incurred claims and benefits | 1,627 | 2,187 | 488 | 1,304 | (29 | ) | — | 5,577 | ||||||||||||||||||||
Policyholders’ dividends | 6 | 8 | — | — | — | — | 14 | |||||||||||||||||||||
Amortization of deferred acquisition costs | 592 | 493 | 204 | 28 | — | — | 1,317 | |||||||||||||||||||||
Other insurance related expenses | 262 | 487 | 151 | 130 | 1 | (2 | ) | 1,029 | ||||||||||||||||||||
Other expenses | 254 | 31 | 28 | 30 | 210 | (5 | ) | 548 | ||||||||||||||||||||
Total claims, benefits and expenses | 2,741 | 3,206 | 871 | 1,492 | 182 | (7 | ) | 8,485 | ||||||||||||||||||||
Operating income (loss) from continuing operations before income tax | 952 | 461 | 103 | (220 | ) | (146 | ) | — | 1,150 | |||||||||||||||||||
Income tax (expense) benefit on operating income (loss) | (318 | ) | (154 | ) | (34 | ) | 151 | 54 | — | (301 | ) | |||||||||||||||||
Net operating income (loss) from continuing operations | 634 | 307 | 69 | (69 | ) | (92 | ) | — | 849 | |||||||||||||||||||
Net realized investment gains (losses), pretax | 15 | 16 | (1 | ) | 7 | 20 | — | 57 | ||||||||||||||||||||
Income tax (expense) benefit on net realized investment gains (losses) | (5 | ) | (6 | ) | 1 | — | (8 | ) | — | (18 | ) | |||||||||||||||||
Net realized investment gains (losses) | 10 | 10 | — | 7 | 12 | — | 39 | |||||||||||||||||||||
Net income (loss) from continuing operations | $ | 644 | $ | 317 | $ | 69 | $ | (62 | ) | $ | (80 | ) | $ | — | $ | 888 | ||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Reinsurance receivables | $ | 567 | $ | 690 | $ | 207 | $ | 525 | $ | 2,753 | $ | — | $ | 4,742 | ||||||||||||||
Insurance receivables | 778 | 954 | 250 | 13 | 2 | — | 1,997 | |||||||||||||||||||||
Deferred acquisition costs | 304 | 213 | 83 | — | — | — | 600 | |||||||||||||||||||||
Goodwill | 117 | — | 35 | — | — | — | 152 | |||||||||||||||||||||
Insurance reserves | ||||||||||||||||||||||||||||
Claim and claim adjustment expenses | 6,229 | 9,514 | 1,441 | 3,183 | 2,904 | — | 23,271 | |||||||||||||||||||||
Unearned premiums | 1,763 | 1,273 | 431 | 125 | — | — | 3,592 | |||||||||||||||||||||
Future policy benefits | — | — | — | 9,490 | — | — | 9,490 | |||||||||||||||||||||
Policyholders’ funds | 9 | 18 | — | — | — | — | 27 | |||||||||||||||||||||
Year ended December 31, 2013 | Specialty | Commercial | International | Life & | Corporate | |||||||||||||||||||||||
Group | & Other | |||||||||||||||||||||||||||
(In millions) | Non-Core | Non-Core | Eliminations | Total | ||||||||||||||||||||||||
Net written premiums | $ | 2,880 | $ | 2,960 | $ | 959 | $ | 552 | $ | (1 | ) | $ | (2 | ) | $ | 7,348 | ||||||||||||
Operating revenues | ||||||||||||||||||||||||||||
Net earned premiums | $ | 2,795 | $ | 3,004 | $ | 916 | $ | 559 | $ | (1 | ) | $ | (2 | ) | $ | 7,271 | ||||||||||||
Net investment income | 629 | 899 | 60 | 662 | 32 | — | 2,282 | |||||||||||||||||||||
Other revenues | 257 | 96 | — | (4 | ) | 12 | (2 | ) | 359 | |||||||||||||||||||
Total operating revenues | 3,681 | 3,999 | 976 | 1,217 | 43 | (4 | ) | 9,912 | ||||||||||||||||||||
Claims, Benefits and Expenses | ||||||||||||||||||||||||||||
Net incurred claims and benefits | 1,593 | 2,259 | 489 | 1,261 | 191 | — | 5,793 | |||||||||||||||||||||
Policyholders’ dividends | 6 | 7 | — | — | — | — | 13 | |||||||||||||||||||||
Amortization of deferred acquisition costs | 585 | 526 | 223 | 28 | — | — | 1,362 | |||||||||||||||||||||
Other insurance related expenses | 250 | 498 | 140 | 130 | (3 | ) | (2 | ) | 1,013 | |||||||||||||||||||
Other expenses | 237 | 32 | 12 | 13 | 183 | (2 | ) | 475 | ||||||||||||||||||||
Total claims, benefits and expenses | 2,671 | 3,322 | 864 | 1,432 | 371 | (4 | ) | 8,656 | ||||||||||||||||||||
Operating income (loss) from continuing operations before income tax | 1,010 | 677 | 112 | (215 | ) | (328 | ) | — | 1,256 | |||||||||||||||||||
Income tax (expense) benefit on operating income (loss) | (342 | ) | (229 | ) | (43 | ) | 141 | 118 | — | (355 | ) | |||||||||||||||||
Net operating income (loss) from continuing operations | 668 | 448 | 69 | (74 | ) | (210 | ) | — | 901 | |||||||||||||||||||
Net realized investment gains (losses), pretax | (5 | ) | (15 | ) | 5 | 26 | 9 | — | 20 | |||||||||||||||||||
Income tax (expense) benefit on net realized investment gains (losses) | 2 | 5 | (2 | ) | (8 | ) | (3 | ) | — | (6 | ) | |||||||||||||||||
Net realized investment gains (losses) | (3 | ) | (10 | ) | 3 | 18 | 6 | — | 14 | |||||||||||||||||||
Net income (loss) from continuing operations | $ | 665 | $ | 438 | $ | 72 | $ | (56 | ) | $ | (204 | ) | $ | — | $ | 915 | ||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Reinsurance receivables | $ | 500 | $ | 1,024 | $ | 294 | $ | 1,203 | $ | 3,067 | $ | — | $ | 6,088 | ||||||||||||||
Insurance receivables | 732 | 1,019 | 299 | 11 | 2 | — | 2,063 | |||||||||||||||||||||
Deferred acquisition costs | 299 | 226 | 99 | — | — | — | 624 | |||||||||||||||||||||
Goodwill | 117 | — | 38 | — | — | — | 155 | |||||||||||||||||||||
Insurance reserves | ||||||||||||||||||||||||||||
Claim and claim adjustment expenses | 6,058 | 10,091 | 1,575 | 3,058 | 3,307 | — | 24,089 | |||||||||||||||||||||
Unearned premiums | 1,710 | 1,374 | 506 | 128 | — | — | 3,718 | |||||||||||||||||||||
Future policy benefits | — | — | — | 10,471 | — | — | 10,471 | |||||||||||||||||||||
Policyholders’ funds | 9 | 15 | — | 92 | — | — | 116 | |||||||||||||||||||||
Year ended December 31, 2012 | Specialty | Commercial | Life & | Corporate | ||||||||||||||||||||||||
Group | & Other | |||||||||||||||||||||||||||
(In millions) | International(a) | Non-Core | Non-Core | Eliminations | Total | |||||||||||||||||||||||
Net written premiums | $ | 2,733 | $ | 3,033 | $ | 648 | $ | 553 | $ | (1 | ) | $ | (2 | ) | $ | 6,964 | ||||||||||||
Operating revenues | ||||||||||||||||||||||||||||
Net earned premiums | $ | 2,709 | $ | 2,968 | $ | 647 | $ | 559 | $ | — | $ | (2 | ) | $ | 6,881 | |||||||||||||
Net investment income | 564 | 826 | 59 | 629 | 32 | — | 2,110 | |||||||||||||||||||||
Other revenues | 231 | 41 | (1 | ) | 33 | 16 | (1 | ) | 319 | |||||||||||||||||||
Total operating revenues | 3,504 | 3,835 | 705 | 1,221 | 48 | (3 | ) | 9,310 | ||||||||||||||||||||
Claims, Benefits and Expenses | ||||||||||||||||||||||||||||
Net incurred claims and benefits | 1,746 | 2,370 | 361 | 1,255 | (16 | ) | — | 5,716 | ||||||||||||||||||||
Policyholders’ dividends | 2 | 11 | — | — | — | — | 13 | |||||||||||||||||||||
Amortization of deferred acquisition costs | 574 | 520 | 152 | 28 | — | — | 1,274 | |||||||||||||||||||||
Other insurance related expenses | 278 | 532 | 94 | 142 | 3 | (2 | ) | 1,047 | ||||||||||||||||||||
Other expenses | 207 | 37 | 7 | 22 | 183 | (1 | ) | 455 | ||||||||||||||||||||
Total claims, benefits and expenses | 2,807 | 3,470 | 614 | 1,447 | 170 | (3 | ) | 8,505 | ||||||||||||||||||||
Operating income (loss) from continuing operations before income tax | 697 | 365 | 91 | (226 | ) | (122 | ) | — | 805 | |||||||||||||||||||
Income tax (expense) benefit on operating income (loss) | (235 | ) | (120 | ) | (40 | ) | 134 | 41 | — | (220 | ) | |||||||||||||||||
Net operating income (loss) from continuing operations | 462 | 245 | 51 | (92 | ) | (81 | ) | — | 585 | |||||||||||||||||||
Net realized investment gains (losses), pretax | 18 | 34 | 7 | (9 | ) | 4 | — | 54 | ||||||||||||||||||||
Income tax (expense) benefit on net realized investment gains (losses) | (8 | ) | (11 | ) | (1 | ) | 3 | (2 | ) | — | (19 | ) | ||||||||||||||||
Net realized investment gains (losses) | 10 | 23 | 6 | (6 | ) | 2 | — | 35 | ||||||||||||||||||||
Net income (loss) from continuing operations | $ | 472 | $ | 268 | $ | 57 | $ | (98 | ) | $ | (79 | ) | $ | — | $ | 620 | ||||||||||||
____________________ | ||||||||||||||||||||||||||||
Revenues by line of business | Revenues by Line of Business | |||||||||||||||||||||||||||
Years ended December 31 | ||||||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||||||
Specialty | ||||||||||||||||||||||||||||
Management & Professional Liability | $ | 2,818 | $ | 2,836 | $ | 2,723 | ||||||||||||||||||||||
Surety | 509 | 490 | 485 | |||||||||||||||||||||||||
Warranty & Alternative Risks | 381 | 350 | 314 | |||||||||||||||||||||||||
Specialty revenues | 3,708 | 3,676 | 3,522 | |||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||
Middle Market | 1,631 | 1,642 | 1,560 | |||||||||||||||||||||||||
Small Business | 709 | 754 | 669 | |||||||||||||||||||||||||
Other Commercial Insurance | 1,343 | 1,588 | 1,640 | |||||||||||||||||||||||||
Commercial revenues | 3,683 | 3,984 | 3,869 | |||||||||||||||||||||||||
International | ||||||||||||||||||||||||||||
Canada | 273 | 289 | 276 | |||||||||||||||||||||||||
CNA Europe | 335 | 326 | 313 | |||||||||||||||||||||||||
Hardy | 365 | 366 | 123 | |||||||||||||||||||||||||
International revenues | 973 | 981 | 712 | |||||||||||||||||||||||||
Life & Group Non-Core revenues | 1,279 | 1,243 | 1,212 | |||||||||||||||||||||||||
Corporate & Other Non-Core revenues | 56 | 52 | 52 | |||||||||||||||||||||||||
Eliminations | (7 | ) | (4 | ) | (3 | ) | ||||||||||||||||||||||
Total revenues | $ | 9,692 | $ | 9,932 | $ | 9,364 | ||||||||||||||||||||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||
Results of discontinued operations | The results of discontinued operations reflected in the Consolidated Statements of Operations were as follows: | ||||||||||||
Years ended December 31 | |||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||
Revenues | |||||||||||||
Net earned premiums | $ | — | $ | — | $ | 1 | |||||||
Net investment income | 94 | 168 | 172 | ||||||||||
Net realized investment gains | 3 | 11 | 9 | ||||||||||
Other revenues | — | 2 | 1 | ||||||||||
Total revenues | 97 | 181 | 183 | ||||||||||
Claims, Benefits and Expenses | |||||||||||||
Insurance claims and policyholders' benefits | 75 | 141 | 167 | ||||||||||
Other operating expenses | 2 | 3 | 3 | ||||||||||
Total claims, benefits and expenses | 77 | 144 | 170 | ||||||||||
Income before income tax | 20 | 37 | 13 | ||||||||||
Income tax expense | (6 | ) | (15 | ) | (5 | ) | |||||||
Income from operations of discontinued operations, net of income tax | 14 | 22 | 8 | ||||||||||
Loss on sale, net of income tax benefit of $40, $0 and $0 | (211 | ) | — | — | |||||||||
(Loss) income from discontinued operations | $ | (197 | ) | $ | 22 | $ | 8 | ||||||
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Quarterly Financial Data [Abstract] | ||||||||||||||||||||
Schedule of quarterly financial information | Quarterly Financial Data | |||||||||||||||||||
2014 | ||||||||||||||||||||
(In millions, except per share data) | First | Second | Third | Fourth | Full Year | |||||||||||||||
Revenues | $ | 2,463 | $ | 2,440 | $ | 2,411 | $ | 2,378 | $ | 9,692 | ||||||||||
Net income (loss) (a) | $ | 13 | $ | 267 | $ | 213 | $ | 198 | $ | 691 | ||||||||||
Basic earnings (loss) per share | $ | 0.05 | $ | 0.99 | $ | 0.79 | $ | 0.73 | $ | 2.56 | ||||||||||
Diluted earnings (loss) per share | $ | 0.05 | $ | 0.98 | $ | 0.79 | $ | 0.73 | $ | 2.55 | ||||||||||
2013 | ||||||||||||||||||||
(In millions, except per share data) | First | Second | Third | Fourth | Full Year | |||||||||||||||
Revenues | $ | 2,455 | $ | 2,450 | $ | 2,458 | $ | 2,569 | $ | 9,932 | ||||||||||
Net income (loss) | $ | 250 | $ | 194 | $ | 272 | $ | 221 | $ | 937 | ||||||||||
Basic earnings (loss) per share | $ | 0.93 | $ | 0.72 | $ | 1.01 | $ | 0.82 | $ | 3.48 | ||||||||||
Diluted earnings (loss) per share (b) | $ | 0.93 | $ | 0.72 | $ | 1.01 | $ | 0.82 | $ | 3.47 | ||||||||||
____________________ | ||||||||||||||||||||
(a) | Net income in the first quarter of 2014 includes the impairment loss on the sale of CAC. | |||||||||||||||||||
(b) | Due to the averaging of shares, quarterly earnings per share do not add to the total for the full year. |
Schedule_V_Valuation_and_Quali1
Schedule V. Valuation and Qualifying Accounts (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||||||
Schedule of valuation and qualifying accounts | SCHEDULE V. VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||||
(In millions) | Balance at Beginning of Period | Charged to Costs and Expenses | Charged to Other Accounts (a) | Deductions | Balance at End of Period | |||||||||||||||
Year ended December 31, 2014 | ||||||||||||||||||||
Deducted from assets: | ||||||||||||||||||||
Allowance for doubtful accounts: | ||||||||||||||||||||
Insurance and reinsurance receivables | $ | 155 | $ | (40 | ) | $ | (1 | ) | $ | (5 | ) | $ | 109 | |||||||
Year ended December 31, 2013 | ||||||||||||||||||||
Deducted from assets: | ||||||||||||||||||||
Allowance for doubtful accounts: | ||||||||||||||||||||
Insurance and reinsurance receivables | $ | 174 | $ | (6 | ) | $ | (3 | ) | $ | (10 | ) | $ | 155 | |||||||
Year ended December 31, 2012 | ||||||||||||||||||||
Deducted from assets: | ||||||||||||||||||||
Allowance for doubtful accounts: | ||||||||||||||||||||
Insurance and reinsurance receivables | $ | 203 | $ | (23 | ) | $ | 5 | $ | (11 | ) | $ | 174 | ||||||||
(a) Amount includes effects of foreign currency translation. |
Schedule_VI_Supplemental_Infor1
Schedule VI. Supplemental Information Concerning Property and Casualty Insurance Operations (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Supplemental Information for Property, Casualty Insurance Underwriters [Abstract] | ||||||||||||
Supplemental information concerning property and casualty insurance operations | SCHEDULE VI. SUPPLEMENTAL INFORMATION CONCERNING PROPERTY AND CASUALTY INSURANCE OPERATIONS | |||||||||||
As of and for the years ended December 31 | Consolidated Property and Casualty Operations | |||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Deferred acquisition costs | $ | 600 | $ | 624 | ||||||||
Reserves for unpaid claim and claim adjustment expenses | 23,271 | 24,015 | ||||||||||
Discount deducted from claim and claim adjustment expense reserves above (based on interest rates ranging from 3.5% to 8.0%) | 1,578 | 1,586 | ||||||||||
Unearned premiums | 3,592 | 3,718 | ||||||||||
Net written premiums | 7,088 | 7,348 | $ | 6,964 | ||||||||
Net earned premiums | 7,212 | 7,271 | 6,881 | |||||||||
Net investment income | 2,031 | 2,240 | 2,074 | |||||||||
Incurred claim and claim adjustment expenses related to current year | 5,043 | 5,113 | 5,266 | |||||||||
Incurred claim and claim adjustment expenses related to prior years | (39 | ) | (115 | ) | (180 | ) | ||||||
Amortization of deferred acquisition costs | 1,317 | 1,362 | 1,274 | |||||||||
Paid claim and claim adjustment expenses | 5,297 | 5,566 | 5,257 | |||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Narrative) (Details) (USD $) | 12 Months Ended | ||
Share data in Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Loss on reinsurance transaction | $34,000,000 | ||
Business Acquisition, Purchase Price | 231,000,000 | ||
Business Combination, Acquisition Related Costs | 4,000,000 | ||
Anticipated amounts due from insureds related to losses under deductible policies | 1,400,000,000 | 1,300,000,000 | |
Minimum interest rate used in determining present value of obligations of structured settlements not funded by annuities | 5.50% | 7.10% | |
Maximum interest rate used in determining present value of obligations of structured settlements not funded by annuities | 8.00% | 9.70% | |
Discounted reserves for unfunded structured settlements | 582,000,000 | 580,000,000 | |
Discounted reserves for unfunded structure settlements, discount amount | 924,000,000 | 969,000,000 | |
Minimum interest rate used to discount workers' compensation lifetime claim reserves and accident and health claim reserves | 3.50% | 3.00% | |
Maximum interest rate used to discount workers' compensation lifetime claim reserves and accident and health claim reserves | 6.80% | 6.80% | |
Discounted reserves for worker's compensation lifetime claim reserves and accident and health claim reserves | 2,500,000,000 | 2,400,000,000 | |
Discounted reserves for worker's compensation lifetime claim reserves and accident and health claim reserves, discount amount | 654,000,000 | 617,000,000 | |
Minimum interest rate used to calculate reserves for long term care products | 4.50% | 4.50% | |
Maximum interest rate used to calculate reserves for payout annuity contracts | 7.90% | 7.90% | |
Minimum interest rate used to calculate reserves for payout annuity contracts | 5.00% | ||
Maximum interest rate used to calculate reserves for payout annuity contracts | 8.70% | ||
Liability balance for guaranty fund | 131,000,000 | 143,000,000 | |
Percentage of billed receivables compared to total reinsurance receivables | 5% or less | ||
Deposit assets | 3,000,000 | 3,000,000 | |
Deposit liabilities | 9,000,000 | 130,000,000 | |
Deferred acquisition costs, net of shadow adjustment | 314,000,000 | 342,000,000 | |
Investments in life settlement contracts | 82,000,000 | 88,000,000 | |
Increase (decrease) in fair value recognized on life settlement contracts | 8,000,000 | -2,000,000 | 11,000,000 |
Gain recognized on matured life settlement contracts | 25,000,000 | 15,000,000 | 42,000,000 |
Decrease in shadow adjustment, net of tax | 979,000,000 | ||
Increase in shadow adjustment, net of tax | 756,000,000 | ||
Reduction of net unrealized gains on investments included in AOCI due to shadow adjustments | 1,288,000,000 | 532,000,000 | |
Foreign currency transaction gain (loss), before tax | -25,000,000 | 2,000,000 | 12,000,000 |
Weighted average number diluted shares outstanding adjustment | 675 | 552 | 417 |
Antidilutive securities excluded from computation of earnings per share, amount | 170 | 111 | 730 |
Interest paid, net | 179,000,000 | 164,000,000 | 170,000,000 |
Proceeds from income tax refunds | 29,000,000 | ||
Income taxes paid | $313,000,000 | $129,000,000 | |
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment, Useful Life | 7 years | ||
Office Equipment [Member] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Building and Building Improvements [Member] | |||
Property, Plant and Equipment, Useful Life | 50 years | ||
Minimum [Member] | |||
Requisite service period for stock- based compensation expense | 3 years | ||
Minimum [Member] | Software [Member] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Maximum [Member] | |||
Requisite service period for stock- based compensation expense | 4 years | ||
Maximum [Member] | Software [Member] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Property and Casualty insurance core operations [Member] | |||
Number of Operating Segments | 3 | ||
Life and Group Non-Core & Corporate and Other Non-Core operations [Member] | |||
Number of Operating Segments | 2 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Life Settlement Contracts) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Life Settlement Contracts, Fair Value Method, Number of Contracts, Fiscal Year Maturity [Abstract] | ||
Life settlement contracts, fair value method, number of contracts, maturing in next twelve months | 60 | |
Life settlement contracts, fair value method, number of contracts, maturing in year two | 60 | |
Life settlement contracts, fair value method, number of contracts, maturing in year three | 50 | |
Life settlement contracts, fair value method, number of contracts, maturing in year four | 50 | |
Life settlement contracts, fair value method, number of contracts, maturing in year five | 50 | |
Life settlement contracts, fair value method, number of contracts, maturing after year five | 318 | |
Life settlement contracts, fair value method, number of contracts | 588 | |
Life settlement contracts, fair value, maturing in next twelve months | $11 | |
Life settlement contracts, fair value, maturing in year two | 10 | |
Life settlement contracts, fair value, maturing in year three | 9 | |
Life settlement contracts, fair value, maturing in year four | 7 | |
Life settlement contracts, fair value, maturing in year five | 6 | |
Life settlement contracts, fair value, maturing after year five | 39 | |
Life settlement contracts, fair value | 82 | 88 |
Life settlement contracts, fair value method, face value, maturing in next twelve months | 37 | |
Life settlement contracts, fair value method, face value, maturing in year two | 33 | |
Life settlement contracts, fair value method, face value, maturing in year three | 30 | |
Life settlement contracts, fair value method, face value, maturing in year four | 26 | |
Life settlement contracts, fair value method, face value, maturing in year five | 26 | |
Life settlement contracts, fair value method, face value, maturing after year five | 187 | |
Life settlement contracts, fair value method, face value | $339 |
Investments_Narrative_Details
Investments (Narrative) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Investments [Abstract] | |||
Number of non-income producing fixed maturity securities | 0 | 0 | |
Number of investments that exceed ten percent of stockholders' equity | 0 | 0 | |
Limited partnership investments | $2,937,000,000 | $2,720,000,000 | |
Undistributed earnings of limited partnership investments | 1,040,000,000 | 969,000,000 | |
Percentage of limited partnerships reported on a current basis | 65.00% | ||
Percentage of limited partnerships reported on a one month lag | 16.00% | ||
Number of active limited partnership investments held | 86 | 87 | |
Percentage of limited partnerships employing hedge fund strategies focused on fixed income and equity investments | 73.00% | 74.00% | |
Limited partnerships invested in private debt and equity | 23.00% | 22.00% | |
Percentage of equity related limited partnership hedge fund strategies | 56.00% | ||
Percentage of multistrategy approach limited partnership hedge fund strategies | 27.00% | ||
Percentage of distressed investments limited partnership hedge fund strategies | 14.00% | ||
Percentage of fixed income limited partnership hedge fund strategies | 3.00% | ||
Carrying value of ten largest limited partnerships | 1,492,000,000 | 1,471,000,000 | |
Carrying value of limited partnerships as percentage of aggregate partnership equity | 4.00% | 4.00% | |
Income As Percentage Of Change In Partnership Equity For All Limited Partnerships | 4.00% | 4.00% | 3.00% |
Commercial mortgage loans past due or in non-accrual status | 0 | 0 | |
Valuation allowances recorded on commercial mortgage loans | 0 | 0 | |
Future capital call commitments for limited partnership investments | 327,000,000 | ||
Mortgage loan commitments | 8,000,000 | ||
Commitments to purchase or fund privately placed debt securities | 75,000,000 | ||
Commitments to sell various privately placed debt securities | 97,000,000 | ||
Carrying value of securities deposited under requirements of regulatory authorities | 3,000,000,000 | 3,300,000,000 | |
Cash and securities deposited as collateral for letters of credit | 361,000,000 | 353,000,000 | |
Carrying value of assets deposited to secure reinsurance and third party obligations | $302,000,000 | $294,000,000 |
Investments_Net_investment_inc
Investments (Net investment income) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net Investment Income [Line Items] | |||
Gross investment income | $2,125 | $2,335 | $2,162 |
Investment expense | -58 | -53 | -52 |
Net investment income | 2,067 | 2,282 | 2,110 |
Fixed maturity securities [Member] | |||
Net Investment Income [Line Items] | |||
Gross investment income | 1,803 | 1,827 | 1,846 |
Short term investments [Member] | |||
Net Investment Income [Line Items] | |||
Gross investment income | 3 | 3 | 5 |
Limited partnership investments [Member] | |||
Net Investment Income [Line Items] | |||
Gross investment income | 263 | 451 | 251 |
Equity securities [Member] | |||
Net Investment Income [Line Items] | |||
Gross investment income | 12 | 12 | 12 |
Mortgage loans [Member] | |||
Net Investment Income [Line Items] | |||
Gross investment income | 31 | 23 | 17 |
Trading portfolio [Member] | |||
Net Investment Income [Line Items] | |||
Gross investment income | 10 | 17 | 24 |
Other [Member] | |||
Net Investment Income [Line Items] | |||
Gross investment income | $3 | $2 | $7 |
Investments_Net_realized_inves
Investments (Net realized investment gains (losses)) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net realized investment gains (losses) | $57 | $20 | $54 |
Fixed maturity securities [Member] | |||
Gross realized gains | 170 | 185 | 222 |
Gross realized losses | -129 | -144 | -145 |
Net realized investment gains (losses) | 41 | 41 | 77 |
Equity securities [Member] | |||
Gross realized gains | 8 | 13 | 19 |
Gross realized losses | -7 | -35 | -42 |
Net realized investment gains (losses) | 1 | -22 | -23 |
Derivative [Member] | |||
Net realized investment gains (losses) | -1 | -9 | -2 |
Short term Invest and other [Member] | |||
Net realized investment gains (losses) | $16 | $10 | $2 |
Investments_Net_change_in_unre
Investments (Net change in unrealized gains (losses) on investments) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net change in unrealized gains (losses) on investments | $1,517 | ($2,556) | $1,875 |
Fixed maturity securities [Member] | |||
Net change in unrealized gains (losses) on investments | 1,511 | -2,541 | 1,871 |
Equity securities [Member] | |||
Net change in unrealized gains (losses) on investments | 6 | -15 | 5 |
Other [Member] | |||
Net change in unrealized gains (losses) on investments | ($1) |
Investments_Components_of_othe
Investments (Components of other-than-temporary impairment losses recognized in earnings) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other-than-temporary impairment losses recognized in earnings | $77 | $76 | $150 |
Corporate and other bonds [Member] | |||
Other-than-temporary impairment losses recognized in earnings | 18 | 20 | 25 |
States, municipalities and political subdivisions [Member] | |||
Other-than-temporary impairment losses recognized in earnings | 46 | 34 | |
Residential mortgage-backed [Member] | |||
Other-than-temporary impairment losses recognized in earnings | 5 | 19 | 48 |
Other asset-backed [Member] | |||
Other-than-temporary impairment losses recognized in earnings | 1 | 2 | |
Total asset-backed [Member] | |||
Other-than-temporary impairment losses recognized in earnings | 6 | 21 | 48 |
U.S. Treasury and obligations of government-sponsored enterprises [Member] | |||
Other-than-temporary impairment losses recognized in earnings | 1 | ||
Total fixed maturity securities available-for-sale [Member] | |||
Other-than-temporary impairment losses recognized in earnings | 70 | 41 | 108 |
Common stock [Member] | |||
Other-than-temporary impairment losses recognized in earnings | 7 | 8 | 6 |
Preferred stock [Member] | |||
Other-than-temporary impairment losses recognized in earnings | 26 | 36 | |
Total equity securities available-for-sale [Member] | |||
Other-than-temporary impairment losses recognized in earnings | 7 | 34 | 42 |
Short term investments [Member] | |||
Other-than-temporary impairment losses recognized in earnings | $1 |
Investments_Summary_of_fixed_m
Investments (Summary of fixed maturity and equity securities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Cost or Amortized Cost | $37,545 | $39,490 |
Gross Unrealized Gain | 3,544 | 2,460 |
Gross Unrealized Loss | 99 | 532 |
Estimated fair value | 40,990 | 41,418 |
Corporate and other bonds [Member] | ||
Cost or Amortized Cost | 17,210 | 19,352 |
Gross Unrealized Gain | 1,721 | 1,645 |
Gross Unrealized Loss | 61 | 135 |
Estimated fair value | 18,870 | 20,862 |
Unrealized OTTI Losses (Gains) | 0 | 0 |
States, municipalities and political subdivisions [Member] | ||
Cost or Amortized Cost | 11,285 | 11,281 |
Gross Unrealized Gain | 1,463 | 548 |
Gross Unrealized Loss | 8 | 272 |
Estimated fair value | 12,740 | 11,557 |
Unrealized OTTI Losses (Gains) | 0 | 0 |
Residential mortgage-backed [Member] | ||
Cost or Amortized Cost | 5,028 | 4,940 |
Gross Unrealized Gain | 218 | 123 |
Gross Unrealized Loss | 13 | 92 |
Estimated fair value | 5,233 | 4,971 |
Unrealized OTTI Losses (Gains) | -53 | -37 |
Commercial mortgage-backed [Member] | ||
Cost or Amortized Cost | 2,056 | 1,995 |
Gross Unrealized Gain | 93 | 90 |
Gross Unrealized Loss | 5 | 22 |
Estimated fair value | 2,144 | 2,063 |
Unrealized OTTI Losses (Gains) | -2 | -3 |
Other asset-backed [Member] | ||
Cost or Amortized Cost | 1,234 | 945 |
Gross Unrealized Gain | 11 | 13 |
Gross Unrealized Loss | 10 | 3 |
Estimated fair value | 1,235 | 955 |
Unrealized OTTI Losses (Gains) | 0 | 0 |
Total asset-backed [Member] | ||
Cost or Amortized Cost | 8,318 | 7,880 |
Gross Unrealized Gain | 322 | 226 |
Gross Unrealized Loss | 28 | 117 |
Estimated fair value | 8,612 | 7,989 |
Unrealized OTTI Losses (Gains) | -55 | -40 |
U.S. Treasury and obligations of government-sponsored enterprises [Member] | ||
Cost or Amortized Cost | 26 | 139 |
Gross Unrealized Gain | 5 | 6 |
Gross Unrealized Loss | 0 | 1 |
Estimated fair value | 31 | 144 |
Unrealized OTTI Losses (Gains) | 0 | 0 |
Foreign Government Debt Securities [Member] | ||
Cost or Amortized Cost | 438 | 531 |
Gross Unrealized Gain | 16 | 15 |
Gross Unrealized Loss | 0 | 3 |
Estimated fair value | 454 | 543 |
Unrealized OTTI Losses (Gains) | 0 | 0 |
Redeemable preferred stock [Member] | ||
Cost or Amortized Cost | 39 | 92 |
Gross Unrealized Gain | 3 | 10 |
Gross Unrealized Loss | 0 | 0 |
Estimated fair value | 42 | 102 |
Unrealized OTTI Losses (Gains) | 0 | 0 |
Total fixed maturity securities available-for-sale [Member] | ||
Cost or Amortized Cost | 37,316 | 39,275 |
Gross Unrealized Gain | 3,530 | 2,450 |
Gross Unrealized Loss | 97 | 528 |
Estimated fair value | 40,749 | 41,197 |
Unrealized OTTI Losses (Gains) | -55 | -40 |
Total fixed maturity securities trading [Member] | ||
Cost or Amortized Cost, Trading Securities | 19 | 36 |
Estimated Fair Value, Trading Securities | 19 | 36 |
Common stock [Member] | ||
Cost or Amortized Cost | 38 | 36 |
Gross Unrealized Gain | 9 | 9 |
Gross Unrealized Loss | 0 | 0 |
Estimated fair value | 47 | 45 |
Preferred stock [Member] | ||
Cost or Amortized Cost | 172 | 143 |
Gross Unrealized Gain | 5 | 1 |
Gross Unrealized Loss | 2 | 4 |
Estimated fair value | 175 | 140 |
Total equity securities available-for-sale [Member] | ||
Cost or Amortized Cost | 210 | 179 |
Gross Unrealized Gain | 14 | 10 |
Gross Unrealized Loss | 2 | 4 |
Estimated fair value | $222 | $185 |
Investments_Securities_in_a_gr
Investments (Securities in a gross unrealized loss position) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | $2,855 | $9,256 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 70 | 388 |
Estimated Fair Value, 12 Months or Longer | 707 | 544 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 29 | 144 |
Estimated Fair Value, Total | 3,562 | 9,800 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 99 | 532 |
Corporate and other bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 1,330 | 3,592 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 46 | 129 |
Estimated Fair Value, 12 Months or Longer | 277 | 72 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 15 | 6 |
Estimated Fair Value, Total | 1,607 | 3,664 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 61 | 135 |
States, municipalities and political subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 335 | 3,251 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 5 | 197 |
Estimated Fair Value, 12 Months or Longer | 127 | 129 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 3 | 75 |
Estimated Fair Value, Total | 462 | 3,380 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 8 | 272 |
Residential mortgage-backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 293 | 1,293 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 5 | 29 |
Estimated Fair Value, 12 Months or Longer | 189 | 343 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 8 | 63 |
Estimated Fair Value, Total | 482 | 1,636 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 13 | 92 |
Commercial mortgage-backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 264 | 640 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 2 | 22 |
Estimated Fair Value, 12 Months or Longer | 99 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 3 | 0 |
Estimated Fair Value, Total | 363 | 640 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 5 | 22 |
Other asset-backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 607 | 269 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 10 | 3 |
Estimated Fair Value, 12 Months or Longer | 7 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Estimated Fair Value, Total | 614 | 269 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 10 | 3 |
Total asset-backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 1,164 | 2,202 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 17 | 54 |
Estimated Fair Value, 12 Months or Longer | 295 | 343 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 11 | 63 |
Estimated Fair Value, Total | 1,459 | 2,545 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 28 | 117 |
U.S. Treasury and obligations of government-sponsored enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 3 | 13 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 1 |
Estimated Fair Value, 12 Months or Longer | 4 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Estimated Fair Value, Total | 7 | 13 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 0 | 1 |
Foreign Government Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 3 | 111 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 3 |
Estimated Fair Value, 12 Months or Longer | 3 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Estimated Fair Value, Total | 6 | 111 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 0 | 3 |
Redeemable preferred stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 3 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | |
Estimated Fair Value, 12 Months or Longer | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Estimated Fair Value, Total | 3 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 0 | |
Total fixed maturity securities available-for-sale [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 2,838 | 9,169 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 68 | 384 |
Estimated Fair Value, 12 Months or Longer | 706 | 544 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 29 | 144 |
Estimated Fair Value, Total | 3,544 | 9,713 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 97 | 528 |
Preferred stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 17 | 87 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 2 | 4 |
Estimated Fair Value, 12 Months or Longer | 1 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Estimated Fair Value, Total | 18 | 87 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $2 | $4 |
Investments_Activity_related_t
Investments (Activity related to the pretax fixed maturity credit loss component reflected within retained earnings for securities still held for which a portion of an OTTI loss was recognized in OCI) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | |||
Beginning balance of credit losses on fixed maturity securities | $74 | $95 | $92 |
Additional credit losses for securities for which an OTTI loss was previously recognized | 2 | 23 | |
Credit losses for securities for which an OTTI loss was previously recognized | 2 | ||
Reductions for securities sold during the period | -9 | -23 | -14 |
Reductions for securities the Company intends to sell or more likely than not will be required to sell | -3 | -8 | |
Ending balance of credit losses on fixed maturity securities | $62 | $74 | $95 |
Investments_Contractual_maturi
Investments (Contractual maturity) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Investments [Abstract] | ||
Due in one year or less, cost or amortized cost | $2,479 | $2,420 |
Due after one year through five years, cost or amortized cost | 9,054 | 9,496 |
Due after five years through ten years, cost or amortized cost | 12,055 | 11,667 |
Due after ten years, cost or amortized cost | 13,728 | 15,692 |
Total Amortized Cost Basis | 37,316 | 39,275 |
Due in one year or less, estimated fair value | 2,511 | 2,455 |
Due after one year through five years, estimated fair value | 9,605 | 10,068 |
Due after five years through ten years, estimated fair value | 12,584 | 11,954 |
Due after ten years, estimated fair value | 16,049 | 16,720 |
Total Estimated Fair Value | $40,749 | $41,197 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Narrative) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Summary of Derivative Instruments [Abstract] | ||
Fair value of cash collateral by the Company | $0 | $0 |
Fair value of cash collateral received from counterparties | $0 | $0 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Summary of aggregate contractual or notional amounts and gross estimated fair values related to derivative financial instruments) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivative [Line Items] | ||
Estimated fair value asset | $0 | |
Estimated fair value (liability) | -3 | |
Not Designated as Hedging Instrument [Member] | Currency forwards [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 9 | |
Estimated fair value asset | 0 | |
Estimated fair value (liability) | 0 | |
Not Designated as Hedging Instrument [Member] | Equity warrants [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 5 | 5 |
Estimated fair value asset | 0 | 0 |
Estimated fair value (liability) | 0 | 0 |
Not Designated as Hedging Instrument [Member] | Embedded Derivative Financial Instruments [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 184 | |
Estimated fair value asset | 0 | |
Estimated fair value (liability) | ($3) |
Fair_Value_Assets_and_liabilit
Fair Value (Assets and liabilities measured at fair value on a recurring basis) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | $42,757 | $43,073 |
Fair value of liabilities, measured on a recurring basis | -3 | |
Corporate and other bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 18,889 | 20,898 |
States, municipalities and political subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 12,740 | 11,557 |
Residential mortgage-backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 5,233 | 4,971 |
Commercial mortgage-backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 2,144 | 2,063 |
Other asset-backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 1,235 | 955 |
Total asset-backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 8,612 | 7,989 |
U.S. Treasury and obligations of government-sponsored enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 31 | 144 |
Foreign Government Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 454 | 543 |
Redeemable preferred stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 42 | 102 |
Fixed maturity securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 40,768 | 41,233 |
Equity securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 222 | 185 |
Other invested assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 41 | 54 |
Short term investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 1,644 | 1,332 |
Life settlement contracts, included in Other assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 82 | 88 |
Separate account business [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 181 | |
Embedded Derivative Financial Instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of liabilities, measured on a recurring basis | -3 | |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 957 | 1,179 |
Fair value of liabilities, measured on a recurring basis | 0 | |
Level 1 [Member] | Corporate and other bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 32 | 33 |
Level 1 [Member] | States, municipalities and political subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 0 | 0 |
Level 1 [Member] | Residential mortgage-backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 0 | 0 |
Level 1 [Member] | Commercial mortgage-backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 0 | 0 |
Level 1 [Member] | Other asset-backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 0 | 0 |
Level 1 [Member] | U.S. Treasury and obligations of government-sponsored enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 28 | 116 |
Level 1 [Member] | Foreign Government Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 41 | 81 |
Level 1 [Member] | Redeemable preferred stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 30 | 45 |
Level 1 [Member] | Fixed maturity securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 131 | 275 |
Level 1 [Member] | Equity securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 145 | 126 |
Level 1 [Member] | Other invested assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 0 | 0 |
Level 1 [Member] | Short term investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 681 | 769 |
Level 1 [Member] | Life settlement contracts, included in Other assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 0 | 0 |
Level 1 [Member] | Separate account business [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 9 | |
Level 1 [Member] | Embedded Derivative Financial Instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of liabilities, measured on a recurring basis | 0 | |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 40,519 | 40,591 |
Fair value of liabilities, measured on a recurring basis | -3 | |
Level 2 [Member] | Corporate and other bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 18,695 | 20,661 |
Level 2 [Member] | States, municipalities and political subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 12,646 | 11,486 |
Level 2 [Member] | Residential mortgage-backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 5,044 | 4,640 |
Level 2 [Member] | Commercial mortgage-backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 2,061 | 1,912 |
Level 2 [Member] | Other asset-backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 580 | 509 |
Level 2 [Member] | Total asset-backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 7,685 | 7,061 |
Level 2 [Member] | U.S. Treasury and obligations of government-sponsored enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 3 | 28 |
Level 2 [Member] | Foreign Government Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 413 | 462 |
Level 2 [Member] | Redeemable preferred stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 12 | 57 |
Level 2 [Member] | Fixed maturity securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 39,454 | 39,755 |
Level 2 [Member] | Equity securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 61 | 48 |
Level 2 [Member] | Other invested assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 41 | 54 |
Level 2 [Member] | Short term investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 963 | 563 |
Level 2 [Member] | Life settlement contracts, included in Other assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 0 | 0 |
Level 2 [Member] | Separate account business [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 171 | |
Level 2 [Member] | Embedded Derivative Financial Instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of liabilities, measured on a recurring basis | -3 | |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 1,281 | 1,303 |
Fair value of liabilities, measured on a recurring basis | 0 | |
Level 3 [Member] | Corporate and other bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 162 | 204 |
Level 3 [Member] | States, municipalities and political subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 94 | 71 |
Level 3 [Member] | Residential mortgage-backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 189 | 331 |
Level 3 [Member] | Commercial mortgage-backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 83 | 151 |
Level 3 [Member] | Other asset-backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 655 | 446 |
Level 3 [Member] | Total asset-backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 927 | 928 |
Level 3 [Member] | U.S. Treasury and obligations of government-sponsored enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 0 | 0 |
Level 3 [Member] | Foreign Government Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 0 | 0 |
Level 3 [Member] | Redeemable preferred stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 0 | 0 |
Level 3 [Member] | Fixed maturity securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 1,183 | 1,203 |
Level 3 [Member] | Equity securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 16 | 11 |
Level 3 [Member] | Other invested assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 0 | 0 |
Level 3 [Member] | Short term investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 0 | 0 |
Level 3 [Member] | Life settlement contracts, included in Other assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 82 | 88 |
Level 3 [Member] | Separate account business [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | 1 | |
Level 3 [Member] | Embedded Derivative Financial Instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of liabilities, measured on a recurring basis | $0 |
Fair_Value_Table_of_reconcilia
Fair Value (Table of reconciliation for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, Beginning, Assets | $1,303 | $1,393 |
Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss) | 27 | -5 |
Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss) | 46 | |
Purchases | 673 | 804 |
Sales | -386 | -414 |
Settlements | -273 | -275 |
Transfers into Level 3 | 107 | 94 |
Transfers out of Level 3 | -216 | -294 |
Balance, Ending, Assets | 1,281 | 1,303 |
Unrealized gains (losses) on Level 3 assets and liabilities held at balance sheet date recognized in net income (loss) | 7 | -36 |
Fixed maturity securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, Beginning, Assets | 1,203 | 1,251 |
Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss) | -9 | 9 |
Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss) | 52 | -3 |
Purchases | 657 | 801 |
Sales | -378 | -405 |
Settlements | -234 | -251 |
Transfers into Level 3 | 107 | 94 |
Transfers out of Level 3 | -215 | -293 |
Balance, Ending, Assets | 1,183 | 1,203 |
Unrealized gains (losses) on Level 3 assets and liabilities held at balance sheet date recognized in net income (loss) | -1 | -7 |
Corporate and other bonds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, Beginning, Assets | 204 | 219 |
Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss) | 2 | 3 |
Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss) | -1 | |
Purchases | 33 | 142 |
Sales | -23 | -116 |
Settlements | -16 | -44 |
Transfers into Level 3 | 18 | 51 |
Transfers out of Level 3 | -55 | -51 |
Balance, Ending, Assets | 162 | 204 |
Unrealized gains (losses) on Level 3 assets and liabilities held at balance sheet date recognized in net income (loss) | -2 | |
States, municipalities and political subdivisions [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, Beginning, Assets | 71 | 96 |
Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss) | 1 | -2 |
Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss) | 4 | 4 |
Purchases | 14 | 122 |
Sales | -10 | -79 |
Settlements | -61 | |
Transfers into Level 3 | 14 | 18 |
Transfers out of Level 3 | -27 | |
Balance, Ending, Assets | 94 | 71 |
Residential mortgage-backed [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, Beginning, Assets | 331 | 413 |
Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss) | -21 | 4 |
Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss) | 61 | -14 |
Purchases | 94 | 116 |
Sales | -174 | -10 |
Settlements | -72 | -75 |
Transfers into Level 3 | 32 | 4 |
Transfers out of Level 3 | -62 | -107 |
Balance, Ending, Assets | 189 | 331 |
Unrealized gains (losses) on Level 3 assets and liabilities held at balance sheet date recognized in net income (loss) | -3 | |
Commercial Mortgage Backed Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, Beginning, Assets | 151 | 129 |
Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss) | 7 | |
Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss) | -6 | 11 |
Purchases | 28 | 107 |
Sales | -60 | -3 |
Settlements | -29 | -11 |
Transfers into Level 3 | 43 | 21 |
Transfers out of Level 3 | -51 | -103 |
Balance, Ending, Assets | 83 | 151 |
Other asset-backed [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, Beginning, Assets | 446 | 368 |
Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss) | 2 | 5 |
Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss) | -6 | -4 |
Purchases | 488 | 314 |
Sales | -111 | -197 |
Settlements | -117 | -35 |
Transfers out of Level 3 | -47 | -5 |
Balance, Ending, Assets | 655 | 446 |
Unrealized gains (losses) on Level 3 assets and liabilities held at balance sheet date recognized in net income (loss) | -1 | -2 |
Total asset-backed [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, Beginning, Assets | 928 | 910 |
Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss) | -12 | 9 |
Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss) | 49 | -7 |
Purchases | 610 | 537 |
Sales | -345 | -210 |
Settlements | -218 | -121 |
Transfers into Level 3 | 75 | 25 |
Transfers out of Level 3 | -160 | -215 |
Balance, Ending, Assets | 927 | 928 |
Unrealized gains (losses) on Level 3 assets and liabilities held at balance sheet date recognized in net income (loss) | -1 | -5 |
Redeemable Preferred Stock [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, Beginning, Assets | 26 | |
Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss) | -1 | |
Settlements | -25 | |
Equity securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, Beginning, Assets | 11 | 34 |
Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss) | 3 | -27 |
Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss) | -6 | 3 |
Purchases | 16 | 2 |
Sales | -8 | |
Transfers out of Level 3 | -1 | |
Balance, Ending, Assets | 16 | 11 |
Unrealized gains (losses) on Level 3 assets and liabilities held at balance sheet date recognized in net income (loss) | -27 | |
Other invested assets, including derivatives, net | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Sales | -1 | |
Settlements | 1 | |
Short-term Investments [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, Beginning, Assets | 6 | |
Sales | -6 | |
Life settlement contracts, included in Other assets [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, Beginning, Assets | 88 | 100 |
Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss) | 33 | 13 |
Settlements | -39 | -25 |
Balance, Ending, Assets | 82 | 88 |
Unrealized gains (losses) on Level 3 assets and liabilities held at balance sheet date recognized in net income (loss) | 8 | -2 |
Separate account business [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, Beginning, Assets | 1 | 2 |
Purchases | 1 | |
Sales | -2 | |
Transfers out of Level 3 | -1 | |
Balance, Ending, Assets | $1 |
Fair_Value_Narrative_Details
Fair Value (Narrative) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value Disclosures [Abstract] | ||
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | $24 | $0 |
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | $1 | $0 |
Fair_Value_Quantitative_inform
Fair Value (Quantitative information about significant unobservable inputs in the fair value measurement of level 3 assets) (Details) (USD $) | 12 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fixed maturity securities [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Assets, Fair Value Disclosure | 101 | 142 |
Fixed maturity securities [Member] | Income Approach Valuation Technique [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Credit Spread | 2.00% | 2.00% |
Fixed maturity securities [Member] | Income Approach Valuation Technique [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Credit Spread | 13.00% | 20.00% |
Fixed maturity securities [Member] | Income Approach Valuation Technique [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Credit Spread | 3.00% | 4.00% |
Equity securities [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Assets, Fair Value Disclosure | 16 | 10 |
Equity securities [Member] | Market Approach Valuation Technique [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Private offering price | 12 | 360 |
Equity securities [Member] | Market Approach Valuation Technique [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Private offering price | 4,391 | 4,268 |
Equity securities [Member] | Market Approach Valuation Technique [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Private offering price | 600 | 1,148 |
Life settlement contracts, included in Other assets [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Assets, Fair Value Disclosure | 82 | 88 |
Life settlement contracts, included in Other assets [Member] | Income Approach Valuation Technique [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Mortality assumption | 55.00% | 70.00% |
Life settlement contracts, included in Other assets [Member] | Income Approach Valuation Technique [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Mortality assumption | 1676.00% | 743.00% |
Life settlement contracts, included in Other assets [Member] | Income Approach Valuation Technique [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Mortality assumption | 163.00% | 192.00% |
Life settlement contracts, included in Other assets [Member] | Income Approach Valuation Technique [Member] | Rate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount rate risk premium | 9.00% | 9.00% |
Fair_Value_Carrying_amount_and
Fair Value (Carrying amount and estimated fair value of financial instrument assets and liabilities which are not measured at fair value) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Financial Assets [Abstract] | ||
Notes receivable for the issuance of common stock | $1 | $23 |
Mortgage loans | 588 | 508 |
Financial Liabilities [Abstract] | ||
Short term debt | 549 | |
Long term debt | 2,559 | 2,011 |
Carrying Amount [Member] | ||
Financial Assets [Abstract] | ||
Notes receivable for the issuance of common stock | 1 | 23 |
Mortgage loans | 588 | 508 |
Financial Liabilities [Abstract] | ||
Premium deposits and annuity contracts | 57 | |
Short term debt | 549 | |
Long term debt | 2,559 | 2,011 |
Estimated Fair Value [Member] | ||
Financial Assets [Abstract] | ||
Notes receivable for the issuance of common stock | 1 | 23 |
Mortgage loans | 608 | 515 |
Financial Liabilities [Abstract] | ||
Premium deposits and annuity contracts | 58 | |
Short term debt | 575 | |
Long term debt | 2,883 | 2,328 |
Level 1 [Member] | Estimated Fair Value [Member] | ||
Financial Assets [Abstract] | ||
Notes receivable for the issuance of common stock | 0 | 0 |
Mortgage loans | 0 | 0 |
Financial Liabilities [Abstract] | ||
Premium deposits and annuity contracts | 0 | |
Short term debt | 0 | |
Long term debt | 0 | 0 |
Level 2 [Member] | Estimated Fair Value [Member] | ||
Financial Assets [Abstract] | ||
Notes receivable for the issuance of common stock | 0 | 0 |
Mortgage loans | 0 | 0 |
Financial Liabilities [Abstract] | ||
Premium deposits and annuity contracts | 0 | |
Short term debt | 575 | |
Long term debt | 2,883 | 2,328 |
Level 3 [Member] | Estimated Fair Value [Member] | ||
Financial Assets [Abstract] | ||
Notes receivable for the issuance of common stock | 1 | 23 |
Mortgage loans | 608 | 515 |
Financial Liabilities [Abstract] | ||
Premium deposits and annuity contracts | 58 | |
Short term debt | 0 | |
Long term debt | $0 | $0 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Federal income taxes received from (paid to) Loews | ($287,000,000) | ($89,000,000) | $75,000,000 |
Unrecognized tax benefits | 0 | 0 | |
Interest income (expense) | 0 | 0 | 2,000,000 |
Unrecognized Tax Benefits, Income Tax Penalties Expense | 0 | 0 | 0 |
Accrued interest and penalties | 0 | 0 | |
Deferred tax liabilities not recognized on undistributed earnings | 0 | ||
Foreign tax expense (benefit) on income from continuing operations | 24,000,000 | 24,000,000 | 34,000,000 |
Income (loss) from continuing foreign operations | 66,000,000 | 101,000,000 | 88,000,000 |
Tax Credit Carryforward, Amount | 0 | ||
Valuation allowance | $0 | $0 |
Income_Taxes_Reconciliation_be
Income Taxes (Reconciliation between the Company's federal income tax (expense) benefit at statutory rates and the recorded income tax (expense) benefit) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Income tax expense at statutory rates | ($423) | ($447) | ($301) |
Tax benefit from tax exempt income | 119 | 97 | 84 |
Foreign taxes and credits | -6 | -1 | -13 |
Other tax expense | -9 | -10 | -9 |
Income tax (expense) benefit | ($319) | ($361) | ($239) |
Income_Taxes_Current_and_defer
Income Taxes (Current and deferred components of the Company's income tax (expense) benefit) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Current tax (expense) benefit | ($318) | ($292) | ($94) |
Deferred income tax (expense) benefit | -1 | -69 | -145 |
Income tax (expense) benefit | ($319) | ($361) | ($239) |
Income_Taxes_Significant_compo
Income Taxes (Significant components of the Company's deferred tax assets and liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Deferred Tax Assets: | ||
Property and casualty claim and claim adjustment expense reserves | $265 | $289 |
Unearned premium reserves | 187 | 178 |
Receivables | 35 | 50 |
Employee benefits | 289 | 187 |
Life settlement contracts | 46 | 46 |
Deferred retroactive reinsurance benefit | 61 | 66 |
Other assets | 138 | 149 |
Gross deferred tax assets | 1,021 | 965 |
Deferred Tax Liabilities: | ||
Investment valuation differences | 50 | 68 |
Deferred acquisition costs | 226 | 232 |
Net unrealized gains | 489 | 383 |
Other liabilities | 65 | 62 |
Deferred Tax Liabilities, Gross | 830 | 745 |
Net deferred tax asset (liability) | $191 | $220 |
Claim_and_Claim_Adjustment_Exp2
Claim and Claim Adjustment Expense Reserves (Narrative) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | |
Catastrophe losses net of reinsurance | $156,000,000 | $169,000,000 | $391,000,000 | |
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development Life & Group | -14,000,000 | -9,000,000 | -11,000,000 | |
Net Prior Year Claim and Allocated Claim Adjustment Expense Reserve Development, Workers' Compensation Reinsurance Pool | -26,000,000 | |||
Loss Portfolio Transfer [Member] | ||||
Net A&EP claim and allocated claim adjustment expense reserves ceded to NICO | 1,600,000,000 | |||
Aggregate limit under A&EP Loss Portfolio Transfer | 4,000,000,000 | |||
A&EP claim and allocated claim adjustment expense reserves ceded under existing third party reinsurance contracts transferred to NICO under A&EP Loss Portfolio Transfer | 1,200,000,000 | |||
Reinsurance premium paid to NICO under A&EP Loss Portfolio Transfer | 2,000,000,000 | |||
Net reinsurance receivables transferrred to NICO under A&EP Loss Portfolio Transfer | 215,000,000 | |||
Total consideration paid to NICO under AEP Loss Portfolio Transfer | 2,200,000,000 | |||
Pretax impact of unrecognized deferred retroactive reinsurance benefit | -13,000,000 | 189,000,000 | ||
Deferred reinsurance benefit yet to be recognized | 176,000,000 | |||
Cumulative amounts ceded under AEP Loss Portfolio Transfer | 2,500,000,000 | |||
Fair value of collateral trust account established by NICO under A&EP Loss Portfolio Transfer | $3,400,000,000 |
Claim_and_Claim_Adjustment_Exp3
Claim and Claim Adjustment Expense Reserves (Reconcilliation of claim and claim adjustment expense reserves) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Reserves, beginning of year: | ||||||
Gross | $24,089 | $24,763 | $24,303 | |||
Ceded | 4,972 | 5,126 | 5,020 | |||
Net reserves, beginning of year | 19,117 | 19,637 | 19,283 | |||
Change in net reserves due to acquisition (disposition) of subsidiaries | -13 | 291 | ||||
Net incurred claim and claim adjustment expenses: | ||||||
Provision for insured events of current year | 5,043 | 5,114 | 5,273 | |||
Decrease in provision for insured events of prior years | -36 | -115 | -182 | |||
Amortization of discount | 161 | 154 | 145 | |||
Total net incurred (a) | 5,168 | [1] | 5,153 | [1] | 5,236 | [1] |
Net payments attributable to: | ||||||
Current year events | -945 | -981 | -988 | |||
Prior year events | -4,355 | -4,588 | -4,280 | |||
Total net payments | -5,300 | -5,569 | -5,268 | |||
Foreign currency translation adjustment and other | -45 | -104 | 95 | |||
Net reserves, end of year | 18,927 | 19,117 | 19,637 | |||
Ceded reserves, end of year | 4,344 | 4,972 | 5,126 | |||
Gross reserves, end of year | $23,271 | $24,089 | $24,763 | |||
[1] | Total net incurred above does not agree to Insurance claims and policyholders' benefits as reflected on the Consolidated Statements of Operations due to amounts related to retroactive reinsurance deferred gain accounting, uncollectible reinsurance and loss deductible receivables, and benefit expenses related to future policy benefits and policyholders' funds, which are not reflected in the table above. |
Claim_and_Claim_Adjustment_Exp4
Claim and Claim Adjustment Expense Reserves (Net prior year claim and claim adjustment expense reserve development) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Decrease in provision for insured events of prior years | ($36) | ($115) | ($182) |
Property and casualty reserve development [Member] | |||
Decrease in provision for insured events of prior years | -39 | -115 | -180 |
Life reserve development in life company [Member] | |||
Decrease in provision for insured events of prior years | $3 | ($2) |
Claim_and_Claim_Adjustment_Exp5
Claim and Claim Adjustment Expense Reserves (Gross and net carried claim and claim adjustment expense reserves) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Gross Case Reserves | $12,256 | $12,262 | ||
Gross IBNR Reserves | 11,015 | 11,827 | ||
Total Gross Carried Claim and Claim Adjustment Expense Reserves | 23,271 | 24,089 | 24,763 | 24,303 |
Net Case Reserves | 10,190 | 10,176 | ||
Net IBNR Reserves | 8,737 | 8,941 | ||
Total Net Carried Claim and Claim Adjustment Expense Reserves | 18,927 | 19,117 | 19,637 | 19,283 |
Specialty [Member] | ||||
Gross Case Reserves | 2,136 | 2,001 | ||
Gross IBNR Reserves | 4,093 | 4,057 | ||
Total Gross Carried Claim and Claim Adjustment Expense Reserves | 6,229 | 6,058 | ||
Net Case Reserves | 1,929 | 1,793 | ||
Net IBNR Reserves | 3,726 | 3,789 | ||
Total Net Carried Claim and Claim Adjustment Expense Reserves | 5,655 | 5,582 | ||
Commercial [Member] | ||||
Gross Case Reserves | 5,298 | 5,570 | ||
Gross IBNR Reserves | 4,216 | 4,521 | ||
Total Gross Carried Claim and Claim Adjustment Expense Reserves | 9,514 | 10,091 | ||
Net Case Reserves | 4,947 | 5,119 | ||
Net IBNR Reserves | 3,906 | 3,992 | ||
Total Net Carried Claim and Claim Adjustment Expense Reserves | 8,853 | 9,111 | ||
International [Member] | ||||
Gross Case Reserves | 752 | 803 | ||
Gross IBNR Reserves | 689 | 772 | ||
Total Gross Carried Claim and Claim Adjustment Expense Reserves | 1,441 | 1,575 | ||
Net Case Reserves | 598 | 629 | ||
Net IBNR Reserves | 663 | 705 | ||
Total Net Carried Claim and Claim Adjustment Expense Reserves | 1,261 | 1,334 | ||
Life and Group Non-Core [Member] | ||||
Gross Case Reserves | 2,881 | 2,748 | ||
Gross IBNR Reserves | 302 | 310 | ||
Total Gross Carried Claim and Claim Adjustment Expense Reserves | 3,183 | 3,058 | ||
Net Case Reserves | 2,572 | 2,352 | ||
Net IBNR Reserves | 271 | 271 | ||
Total Net Carried Claim and Claim Adjustment Expense Reserves | 2,843 | 2,623 | ||
Corporate and Other [Member] | ||||
Gross Case Reserves | 1,189 | 1,140 | ||
Gross IBNR Reserves | 1,715 | 2,167 | ||
Total Gross Carried Claim and Claim Adjustment Expense Reserves | 2,904 | 3,307 | ||
Net Case Reserves | 144 | 283 | ||
Net IBNR Reserves | 171 | 184 | ||
Total Net Carried Claim and Claim Adjustment Expense Reserves | $315 | $467 |
Claim_and_Claim_Adjustment_Exp6
Claim and Claim Adjustment Expense Reserves (Net prior year development) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development, excluding Life & Group | ($21) | ($118) | ($205) |
Pretax (favorable) unfavorable premium development, excluding Life & Group | -32 | -42 | -46 |
Total pretax (favorable) unfavorable net prior year development, excluding Life & Group | -53 | -160 | -251 |
Specialty [Member] | |||
Segment Reporting Information [Line Items] | |||
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development, excluding Life & Group | -136 | -196 | -93 |
Pretax (favorable) unfavorable premium development, excluding Life & Group | -13 | -14 | -14 |
Total pretax (favorable) unfavorable net prior year development, excluding Life & Group | -149 | -210 | -107 |
Commercial [Member] | |||
Segment Reporting Information [Line Items] | |||
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development, excluding Life & Group | 176 | 122 | -25 |
Pretax (favorable) unfavorable premium development, excluding Life & Group | -20 | -8 | -36 |
Total pretax (favorable) unfavorable net prior year development, excluding Life & Group | 156 | 114 | -61 |
International [Member] | |||
Segment Reporting Information [Line Items] | |||
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development, excluding Life & Group | -59 | -38 | -74 |
Pretax (favorable) unfavorable premium development, excluding Life & Group | 2 | -21 | 3 |
Total pretax (favorable) unfavorable net prior year development, excluding Life & Group | -57 | -59 | -71 |
Corporate and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development, excluding Life & Group | -2 | -6 | -13 |
Pretax (favorable) unfavorable premium development, excluding Life & Group | -1 | 1 | 1 |
Total pretax (favorable) unfavorable net prior year development, excluding Life & Group | ($3) | ($5) | ($12) |
Claim_and_Claim_Adjustment_Exp7
Claim and Claim Adjustment Expense Reserves (Net prior year claim and allocated claim adjustment expense reserve development for Specialty segment) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development, excluding Life & Group | ($21) | ($118) | ($205) |
Specialty [Member] | |||
Medical Professional Liability | 39 | -27 | -34 |
Other Professional Liability and Management Liability | -87 | -73 | 19 |
Surety | -82 | -74 | -63 |
Warranty | -2 | -3 | -5 |
Other | -4 | -19 | -10 |
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development, excluding Life & Group | ($136) | ($196) | ($93) |
Claim_and_Claim_Adjustment_Exp8
Claim and Claim Adjustment Expense Reserves (Net prior year claim and allocated claim adjustment expense reserve development for Commercial segment) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development, excluding Life & Group | ($21) | ($118) | ($205) |
Commercial [Member] | |||
Commercial Auto | 31 | 18 | 25 |
General Liability | 45 | 64 | -66 |
Workers' Compensation | 139 | 91 | 15 |
Property and Other | -39 | -51 | 1 |
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development, excluding Life & Group | $176 | $122 | ($25) |
Claim_and_Claim_Adjustment_Exp9
Claim and Claim Adjustment Expense Reserves Net prior year claim and allocated claim adjustment expense reserve development for International segment (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development, excluding Life & Group | ($21) | ($118) | ($205) |
International [Member] | |||
Medical Professional Liability | -7 | -7 | 1 |
Other Professional Liability | -26 | -30 | -41 |
Liability | -13 | -8 | -2 |
Property & Marine | -14 | 13 | -30 |
Other | -9 | -17 | -2 |
Commutations | 10 | 11 | |
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development, excluding Life & Group | ($59) | ($38) | ($74) |
Recovered_Sheet1
Claim and Claim Adjustment Expense Reserves (Impact of Loss Portfolio Transfer on the Consolidated Statement of Operations) (Details) (Loss Portfolio Transfer [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Loss Portfolio Transfer [Member] | |||
Net AEP adverse development before consideration of LPT | $363 | $261 | |
Provision for uncollectible third-party reinsurance on AEP | 140 | ||
Additional amounts ceded under LPT | 503 | 261 | |
Retroactive reinsurance benefit recognized | -13 | -314 | -261 |
Pretax impact of unrecognized deferred retroactive reinsurance benefit | ($13) | $189 |
Reinsurance_Narrative_Details
Reinsurance (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Funds held under reinsurance agreements, liability | $3,400,000,000 | $3,900,000,000 | |
Reinsurance recoveries reported in insurance claims and policyholders' benefits reported on the Consolidated Statement of Operations | 1,379,000,000 | 1,450,000,000 | 1,443,000,000 |
Subsidiaries of Berkshire Hathaway Group [Member] | |||
Largest Recoverables From Single Reinsurer | 2,565,000,000 | ||
Subsidiaries of Hartford Insurance Group [Member] | |||
Largest Recoverables From Single Reinsurer | 244,000,000 | ||
Subsidiaries of Wilton Re [Member] | |||
Largest Recoverables From Single Reinsurer | 185,000,000 | ||
Significant Captive Program [Member] | |||
Direct and ceded earned premiums | 2,643,000,000 | 2,156,000,000 | 1,794,000,000 |
Reinsurance recoveries reported in insurance claims and policyholders' benefits reported on the Consolidated Statement of Operations | $1,458,000,000 | $712,000,000 | $814,000,000 |
Reinsurance_Components_of_Rein
Reinsurance (Components of Reinsurance Receivables) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Reinsurance Disclosures [Abstract] | ||||
Ceded claim and claim adjustment expenses | $4,344 | $4,972 | $5,126 | $5,020 |
Ceded future policy benefits | 185 | 733 | ||
Ceded policyholders' funds | 35 | |||
Reinsurance receivables related to paid losses | 213 | 348 | ||
Reinsurance receivables | 4,742 | 6,088 | ||
Allowance for uncollectible reinsurance | -48 | -71 | ||
Reinsurance receivables, net of allowance for uncollectible reinsurance | $4,694 | $6,017 |
Reinsurance_Components_of_Earn
Reinsurance (Components of Earned Premiums) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Direct premiums earned | $9,960 | $9,574 | $8,866 |
Assumed premiums earned | 325 | 306 | 244 |
Ceded premiums earned | 3,073 | 2,609 | 2,229 |
Net earned premiums | 7,212 | 7,271 | 6,881 |
Property and Casualty Insurance [Member] | |||
Direct premiums earned | 9,452 | 9,063 | 8,354 |
Assumed premiums earned | 277 | 258 | 197 |
Ceded premiums earned | 3,073 | 2,609 | 2,229 |
Net earned premiums | 6,656 | 6,712 | 6,322 |
Accident and Health Insurance [Member] | |||
Direct premiums earned | 508 | 511 | 512 |
Assumed premiums earned | 48 | 48 | 47 |
Ceded premiums earned | 0 | 0 | 0 |
Net earned premiums | $556 | $559 | $559 |
Percentage of assumed premiums earned to net premiums earned [Member] | |||
Percentage of assumed premium earned to premium earned net | 4.50% | 4.20% | 3.50% |
Percentage of assumed premiums earned to net premiums earned [Member] | Property and Casualty Insurance [Member] | |||
Percentage of assumed premium earned to premium earned net | 4.20% | 3.80% | 3.10% |
Percentage of assumed premiums earned to net premiums earned [Member] | Accident and Health Insurance [Member] | |||
Percentage of assumed premium earned to premium earned net | 8.60% | 8.60% | 8.40% |
Reinsurance_Components_of_Writ
Reinsurance (Components of Written Premiums) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Direct premiums written | $9,787 | $9,608 | $8,973 |
Assumed premiums written | 325 | 296 | 216 |
Ceded premiums written | 3,024 | 2,556 | 2,225 |
Net written premiums | 7,088 | 7,348 | 6,964 |
Property and Casualty Insurance [Member] | |||
Direct premiums written | 9,283 | 9,103 | 8,467 |
Assumed premiums written | 276 | 249 | 169 |
Ceded premiums written | 3,024 | 2,556 | 2,225 |
Net written premiums | 6,535 | 6,796 | 6,411 |
Accident and Health Insurance [Member] | |||
Direct premiums written | 504 | 505 | 506 |
Assumed premiums written | 49 | 47 | 47 |
Ceded premiums written | 0 | 0 | 0 |
Net written premiums | $553 | $552 | $553 |
Percentage of assumed premiums written to net premiums written [Member] | |||
Percentage of assumed premium written to premium written net | 4.60% | 4.00% | 3.10% |
Percentage of assumed premiums written to net premiums written [Member] | Property and Casualty Insurance [Member] | |||
Percentage of assumed premium written to premium written net | 4.20% | 3.70% | 2.60% |
Percentage of assumed premiums written to net premiums written [Member] | Accident and Health Insurance [Member] | |||
Percentage of assumed premium written to premium written net | 8.90% | 8.50% | 8.50% |
Debt_Narrative_Details
Debt (Narrative) (Details) (USD $) | Dec. 31, 2014 |
Debt Disclosure [Abstract] | |
Federal Home Loan Bank Stock | $16,000,000 |
Federal Home Loan Bank, Advances, General Debt Obligations, Maximum Amount Available | 330,000,000 |
Line of Credit, Current borrowing capacity | 250,000,000 |
Additional borrowing capacity available | 100,000,000 |
Line of Credit, Minimum Net Worth Required for Compliance | $8,600,000,000 |
Debt_Schedule_of_debt_instrume
Debt (Schedule of debt instruments) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Long term debt | $2,559 | $2,011 |
Total debt | 2,559 | |
Debt, Long-term and Short-term, Combined Amount | 2,560 | |
Senior notes 6.500%, face amount of $350, due August 15, 2016 | ||
Long term debt | 349 | 349 |
Senior notes 6.950%, face amount $150, due January 15, 2018 | ||
Long term debt | 150 | 149 |
Senior notes 7.350%, face amount $350, due November 15, 2019 | ||
Long term debt | 348 | 348 |
Senior notes 5.875%, face amount $500, due August 15, 2020 | ||
Long term debt | 497 | 497 |
Senior notes 5.750%, face amount $400, due August 15, 2021 | ||
Long term debt | 397 | 397 |
Senior Notes, 3.950%, face amount of $550, due May 15, 2024 | ||
Long term debt | 547 | |
Debenture of CNAF, 7.250%, face amount of $243, due November 15, 2023 | ||
Long term debt | 241 | 241 |
Subordinated variable rate debt of Hardy, face amount of $30, due September 15, 2036 | ||
Long term debt | 30 | 30 |
Senior notes 5.850%, face amount $549, due December 15, 2014 | ||
Short term debt | $549 |
Debt_Maturity_of_debt_Details
Debt (Maturity of debt) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Debt Disclosure [Abstract] | |
Repayments of principal in year two | $350 |
Repayments of principal in year four | 150 |
Repayments of principal in year five | 350 |
Repayments of principal after year five | 1,723 |
Less discount | -14 |
Total debt | $2,559 |
Benefit_Plans_Narrative_detail
Benefit Plans (Narrative) (details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Lump sum settlement acceptance rate by retirement plan participants | 20.00% | ||
Lump sum pension settlement payment | $253 | ||
Settlement loss | 84 | ||
Curtailment gain | -86 | ||
Future capital call commitments for limited partnership investments | 327 | ||
Document Period End Date | 31-Dec-14 | ||
Pension Plans, Defined Benefit [Member] | |||
Settlement loss | 84 | 3 | |
Defined benefit plan, accumulated benefit obligation | 2,962 | 2,889 | |
Future capital call commitments for limited partnership investments | 107 | ||
Limited partnership equity related hedge fund strategy plan assets | 57.00% | ||
Limited partnership hedge fund multi strategy plan assets | 37.00% | ||
Limited partnership hedge fund strategy distressed investments plan assets | 6.00% | ||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | 14 | ||
Cost of Living Adjustment [Member] | |||
Assumptions used in calculating assumed health care cost trend rate | 4.00% | ||
Employer Subsidy on Health Care Costs [Member] | |||
Assumptions used in calculating assumed health care cost trend rate | 4.00% | ||
Other Postretirement Benefit Plan [Member] | |||
Curtailment gain | -86 | ||
Defined benefit plan, health care cost trend rate assumed for next fiscal year | 4.00% | 4.00% | 4.00% |
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | 5 | ||
Equity securities [Member] | |||
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 40.00% | ||
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 60.00% | ||
Defined Contribution Pension [Member] | |||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 50.00% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 70.00% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 6.00% | ||
Defined Contribution Plan, Employers Matching Contribution, Vesting Period in Years | 5 years | ||
Company Contribution of Eligible Compensation, Depending on Age, Percent | 3% or 5% | ||
Benefit expense for the Company's savings plan | $69 | 71 | 70 |
First Year of Employment [Member] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 35.00% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 6.00% | ||
Additional Contribution, Management Discretion [Member] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 80.00% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 6.00% | ||
Defined Contribution Plan, Employers Matching Contribution, Vesting Period in Years | 5 years | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount, Percent | 2.00% |
Benefit_Plans_Funded_Status_De
Benefit Plans (Funded Status) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at January 1 | $2,943 | $3,271 | |
Service cost | 9 | 12 | 12 |
Interest cost | 132 | 121 | 135 |
Participants' contributions | 0 | 0 | |
Plan amendments | -3 | 0 | |
Actuarial (gain) loss | 367 | -289 | |
Benefits paid | -165 | -165 | |
Settlements | -257 | -8 | |
Foreign currency translation and other | -7 | 1 | |
Benefit obligation at December 31 | 3,019 | 2,943 | 3,271 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at January 1 | 2,656 | 2,425 | |
Actual return on plan assets | 216 | 311 | |
Company contributions | 12 | 92 | |
Participants' contributions | 0 | 0 | |
Benefits paid | -165 | -165 | |
Settlements | -257 | -8 | |
Foreign currency translation and other | -6 | 1 | |
Fair value of plan assets at December 31 | 2,456 | 2,656 | 2,425 |
Defined Benefit Plan, Funded Status of Plan [Abstract] | |||
Funded status | -563 | -287 | |
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract] | |||
Other assets | 9 | 9 | |
Other liabilities | -572 | -296 | |
Net amount recognized on balance sheets | -563 | -287 | |
Amounts recognized in Accumulated other comprehensive income not yet recognized in net periodic cost (benefit)[Abstract] | |||
Prior service credit | 0 | 0 | |
Net actuarial (gain) loss | 974 | 745 | |
Net amount recognized in Accumulated other comprehensive income | 974 | 745 | |
Other Postretirement Benefit Plan [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at January 1 | 40 | 47 | |
Service cost | 0 | 1 | 0 |
Interest cost | 1 | 1 | 2 |
Participants' contributions | 5 | 5 | |
Plan amendments | -7 | 0 | |
Actuarial (gain) loss | 1 | -3 | |
Benefits paid | -11 | -12 | |
Settlements | 0 | 0 | |
Foreign currency translation and other | 0 | 1 | |
Benefit obligation at December 31 | 29 | 40 | 47 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at January 1 | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Company contributions | 6 | 7 | |
Participants' contributions | 5 | 5 | |
Benefits paid | -11 | -12 | |
Settlements | 0 | 0 | |
Foreign currency translation and other | 0 | 0 | |
Fair value of plan assets at December 31 | 0 | 0 | 0 |
Defined Benefit Plan, Funded Status of Plan [Abstract] | |||
Funded status | -29 | -40 | |
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract] | |||
Other assets | 0 | 0 | |
Other liabilities | -29 | -40 | |
Net amount recognized on balance sheets | -29 | -40 | |
Amounts recognized in Accumulated other comprehensive income not yet recognized in net periodic cost (benefit)[Abstract] | |||
Prior service credit | -9 | -98 | |
Net actuarial (gain) loss | 8 | 8 | |
Net amount recognized in Accumulated other comprehensive income | ($1) | ($90) |
Benefit_Plans_Components_of_ne
Benefit Plans (Components of net periodic cost (benefit)) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Curtailment gain | ($86) | ||
Settlement loss | 84 | ||
Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 9 | 12 | 12 |
Interest cost on projected benefit obligation | 132 | 121 | 135 |
Expected return on plan assets | -191 | -181 | -171 |
Amortization of net actuarial (gain) loss | 25 | 47 | 39 |
Settlement loss | 84 | 3 | |
Net periodic (benefit) cost | 59 | 2 | 15 |
Other Postretirement Benefit Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0 | 1 | 0 |
Interest cost on projected benefit obligation | 1 | 1 | 2 |
Amortization of prior service credit | -10 | -18 | -18 |
Amortization of net actuarial (gain) loss | 1 | 2 | 1 |
Curtailment gain | -86 | ||
Net periodic (benefit) cost | ($94) | ($14) | ($15) |
Benefit_Plans_Schedule_of_amou
Benefit Plans (Schedule of amounts recognized in Other comprehensive income) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax, [Abstract] | |||
Amounts arising during the period | ($337) | $422 | ($195) |
Curtailment and other | -81 | 0 | 0 |
Settlement | 84 | 0 | 0 |
Reclassification adjustment relating to prior service cost (credit) | -10 | -18 | -18 |
Reclassification adjustment relating to actuarial (gain) loss | 26 | 49 | 40 |
Total increase (decrease) in Other comprehensive income | ($318) | $453 | ($173) |
Benefit_Plans_Schedule_of_esti
Benefit Plans (Schedule of estimated amounts to be recognized from Accumulated other comprehensive income into net periodic cost (benefit) during next fiscal year) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2015 |
Pension Plans, Defined Benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Amortization of prior service cost (credit) | $0 |
Amortization of net actuarial (gain) loss | 38 |
Total estimated amounts to be recognized | 38 |
Other Postretirement Benefit Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Amortization of prior service cost (credit) | -2 |
Amortization of net actuarial (gain) loss | 1 |
Total estimated amounts to be recognized | ($1) |
Benefit_Plans_Actuarial_Assump
Benefit Plans (Actuarial Assumptions for Benefit Obligations) (Details) | Dec. 31, 2014 | Dec. 31, 2013 |
Pension Plans, Defined Benefit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.85% | 4.65% |
Expected long term rate of return | 7.50% | 7.50% |
Rate of compensation increases | 3.92% | 3.99% |
Other Postretirement Benefit Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 2.50% | 3.60% |
Benefit_Plans_Actuarial_Assump1
Benefit Plans (Actuarial Assumptions for Net Cost or Benefit) (Details) | 12 Months Ended | 6 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Jun. 30, 2014 | |
Pension Plans, Defined Benefit [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Discount rate | 4.65% | 3.80% | 4.60% | ||
Expected long term rate of return | 7.50% | 7.75% | 8.00% | ||
Rate of compensation increases | 3.99% | 4.07% | 4.13% | ||
Other Postretirement Benefit Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Discount rate | 2.80% | 3.75% | 3.10% | 3.60% |
Benefit_Plans_Fair_Value_of_Pl
Benefit Plans (Fair Value of Plan Assets Measured on a Recurring Basis) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Document Period End Date | 31-Dec-14 | ||
Corporate and other bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 478 | $520 | |
Corporate and other bonds [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Corporate and other bonds [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 463 | 505 | |
Corporate and other bonds [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 15 | 15 | 11 |
States, municipalities and political subdivisions [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 80 | 73 | |
States, municipalities and political subdivisions [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
States, municipalities and political subdivisions [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 80 | 73 | |
States, municipalities and political subdivisions [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Residential mortgage-backed [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 123 | 130 | |
Residential mortgage-backed [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Residential mortgage-backed [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 123 | 130 | |
Residential mortgage-backed [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Commercial Mortgage Backed Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 75 | 106 | |
Commercial Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Commercial Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 75 | 106 | |
Commercial Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other asset-backed [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 12 | 12 | |
Other asset-backed [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other asset-backed [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 12 | 12 | |
Other asset-backed [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Total asset-backed [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 210 | 248 | |
Total asset-backed [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Total asset-backed [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 210 | 248 | |
Total asset-backed [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Treasury and obligations of government-sponsored enterprises [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 25 | ||
U.S. Treasury and obligations of government-sponsored enterprises [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 25 | ||
U.S. Treasury and obligations of government-sponsored enterprises [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
U.S. Treasury and obligations of government-sponsored enterprises [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Fixed Maturities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 793 | 841 | |
Fixed Maturities [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 25 | 0 | |
Fixed Maturities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 753 | 826 | |
Fixed Maturities [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 15 | 15 | 11 |
Equity securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 507 | 605 | |
Equity securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 389 | 480 | |
Equity securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 118 | 117 | |
Equity securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 8 | 5 |
Derivative Financial Instruments, Assets [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 2 | |
Derivative Financial Instruments, Assets [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 2 | |
Derivative Financial Instruments, Assets [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Derivative Financial Instruments, Assets [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Short-term Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 134 | 94 | |
Short-term Investments [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 33 | 45 | |
Short-term Investments [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 101 | 49 | |
Short-term Investments [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Hedge Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 865 | 969 | |
Hedge Funds [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Hedge Funds [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 562 | 647 | |
Hedge Funds [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 303 | 322 | 359 |
Private Equity Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 113 | 114 | |
Private Equity Funds [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Private Equity Funds [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Private Equity Funds [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 113 | 114 | 62 |
Total limited partnerships [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 978 | 1,083 | |
Total limited partnerships [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Total limited partnerships [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 562 | 647 | |
Total limited partnerships [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 416 | 436 | 421 |
Other assets [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 30 | 31 | |
Other assets [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other assets [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 30 | 31 | |
Other assets [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Cash [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 13 | ||
Cash [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 13 | ||
Cash [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Cash [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Total assets [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,456 | 2,656 | |
Total assets [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 461 | 527 | |
Total assets [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,564 | 1,670 | |
Total assets [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 431 | $459 | $447 |
Benefit_Plans_Reconciliation_o
Benefit Plans (Reconciliation of Level 3 Plan Assets) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Corporate and other bonds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at December 31 | $478 | $520 |
Fixed Maturities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at December 31 | 793 | 841 |
Equity securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at December 31 | 507 | 605 |
Hedge Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at December 31 | 865 | 969 |
Private Equity Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at December 31 | 113 | 114 |
Total limited partnerships [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at December 31 | 978 | 1,083 |
Total assets [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at December 31 | 2,456 | 2,656 |
Fair Value, Inputs, Level 3 [Member] | Corporate and other bonds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at January 1 | 15 | 11 |
Defined Benefit Plan, Actual Return on Plan Assets Still Held | 0 | -1 |
Defined Benefit Plan, Actual Return on Plan Assets Sold During Period | 0 | 0 |
Defined Benefit Plan, Purchases, Sales, and Settlements | 0 | 5 |
Defined Benefit Plan, Net transfers into (out of) Level 3 | 0 | 0 |
Fair value of plan assets at December 31 | 15 | 15 |
Fair Value, Inputs, Level 3 [Member] | Fixed Maturities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at January 1 | 15 | 11 |
Defined Benefit Plan, Actual Return on Plan Assets Still Held | 0 | -1 |
Defined Benefit Plan, Actual Return on Plan Assets Sold During Period | 0 | 0 |
Defined Benefit Plan, Purchases, Sales, and Settlements | 0 | 5 |
Defined Benefit Plan, Net transfers into (out of) Level 3 | 0 | 0 |
Fair value of plan assets at December 31 | 15 | 15 |
Fair Value, Inputs, Level 3 [Member] | Equity securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at January 1 | 8 | 5 |
Defined Benefit Plan, Actual Return on Plan Assets Still Held | 0 | 3 |
Defined Benefit Plan, Actual Return on Plan Assets Sold During Period | 0 | 0 |
Defined Benefit Plan, Purchases, Sales, and Settlements | -8 | 0 |
Defined Benefit Plan, Net transfers into (out of) Level 3 | 0 | 0 |
Fair value of plan assets at December 31 | 0 | 8 |
Fair Value, Inputs, Level 3 [Member] | Hedge Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at January 1 | 322 | 359 |
Defined Benefit Plan, Actual Return on Plan Assets Still Held | 19 | 56 |
Defined Benefit Plan, Actual Return on Plan Assets Sold During Period | 0 | 0 |
Defined Benefit Plan, Purchases, Sales, and Settlements | -38 | -77 |
Defined Benefit Plan, Net transfers into (out of) Level 3 | 0 | -16 |
Fair value of plan assets at December 31 | 303 | 322 |
Fair Value, Inputs, Level 3 [Member] | Private Equity Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at January 1 | 114 | 62 |
Defined Benefit Plan, Actual Return on Plan Assets Still Held | 19 | 0 |
Defined Benefit Plan, Actual Return on Plan Assets Sold During Period | 0 | 0 |
Defined Benefit Plan, Purchases, Sales, and Settlements | -20 | 52 |
Defined Benefit Plan, Net transfers into (out of) Level 3 | 0 | 0 |
Fair value of plan assets at December 31 | 113 | 114 |
Fair Value, Inputs, Level 3 [Member] | Total limited partnerships [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at January 1 | 436 | 421 |
Defined Benefit Plan, Actual Return on Plan Assets Still Held | 38 | 56 |
Defined Benefit Plan, Actual Return on Plan Assets Sold During Period | 0 | 0 |
Defined Benefit Plan, Purchases, Sales, and Settlements | -58 | -25 |
Defined Benefit Plan, Net transfers into (out of) Level 3 | 0 | -16 |
Fair value of plan assets at December 31 | 416 | 436 |
Fair Value, Inputs, Level 3 [Member] | Investment Contracts with Insurance Company [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at January 1 | 10 | |
Defined Benefit Plan, Actual Return on Plan Assets Still Held | 0 | |
Defined Benefit Plan, Actual Return on Plan Assets Sold During Period | 0 | |
Defined Benefit Plan, Purchases, Sales, and Settlements | -10 | |
Defined Benefit Plan, Net transfers into (out of) Level 3 | 0 | |
Fair value of plan assets at December 31 | 0 | |
Fair Value, Inputs, Level 3 [Member] | Total assets [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at January 1 | 459 | 447 |
Defined Benefit Plan, Actual Return on Plan Assets Still Held | 38 | 58 |
Defined Benefit Plan, Actual Return on Plan Assets Sold During Period | 0 | 0 |
Defined Benefit Plan, Purchases, Sales, and Settlements | -66 | -30 |
Defined Benefit Plan, Net transfers into (out of) Level 3 | 0 | -16 |
Fair value of plan assets at December 31 | $431 | $459 |
Benefit_Plans_Estimated_Future
Benefit Plans (Estimated Future Minimum Benefit Payments to Participants) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Pension Plans, Defined Benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Expected Future Benefit Payments in Year One | $179 |
Defined Benefit Plan, Expected Future Benefit Payments in Year Two | 181 |
Defined Benefit Plan, Expected Future Benefit Payments in Year Three | 180 |
Defined Benefit Plan, Expected Future Benefit Payments in Year Four | 184 |
Defined Benefit Plan, Expected Future Benefit Payments in Year Five | 185 |
Defined Benefit Plan, Expected Future Benefit Payments in Five Fiscal Years Thereafter | 936 |
Other Postretirement Benefit Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Expected Future Benefit Payments in Year One | 5 |
Defined Benefit Plan, Expected Future Benefit Payments in Year Two | 4 |
Defined Benefit Plan, Expected Future Benefit Payments in Year Three | 4 |
Defined Benefit Plan, Expected Future Benefit Payments in Year Four | 4 |
Defined Benefit Plan, Expected Future Benefit Payments in Year Five | 3 |
Defined Benefit Plan, Expected Future Benefit Payments in Five Fiscal Years Thereafter | $9 |
StockBased_Compensation_Narrat
Stock-Based Compensation (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 6,000,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,500,000 | ||
Allocated Share-based Compensation Expense | $11 | $10 | $9 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 4 | 3 | 3 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 13 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 8 months 15 days | ||
Restricted Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting Period Following Date of Grant, in Years | 4 | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting Period Following Date of Grant, in Years | 4 | ||
Range of Shares Initially Granted Payable Based Upon Attainment of Specific Annual Performance Goals | 0% to 100% | ||
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Range of Shares Initially Granted Payable Based Upon Attainment of Specific Annual Performance Goals | 0% to 200% | ||
Measurement Period of Specific Annual Performance Goals, in Years | 3 | ||
Stock Options and SARs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting Period Following Date of Grant, in Years | 4 | ||
Stock Options and SARs, Maximum Term Following Date of Grant, in Years | 10 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | 10,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,000,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 1,000,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 1,000,000 | ||
Fair Value of Stock Based Awards Vested | $1 | $1 | $1 |
StockBased_Compensation_Restri
Stock-Based Compensation (Restricted shares, performance-based restricted share units and performance share unit activity) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Number of nonvested awards at January 1 | 847,674 |
Weighted average grant date fair value of nonvested awards at January 1 | $29.61 |
Number of awards granted | 261,273 |
Weighted average grant date fair value of awards granted | $41.01 |
Number of awards vested | -156,332 |
Weighted average grant date fair value of awards vested | $28.42 |
Number of awards forfeited, canceled or expired | -91,002 |
Weighted average grant date fair value of awards forfeited, canceled or expired | $32.09 |
Performance-based adjustment | 52,568 |
Weighted average grant date fair value of performance based adjustment | $28.50 |
Number of nonvested awards at December 31 | 914,181 |
Weighted average grant date fair value of nonvested awards at December 31 | $32.76 |
Schedule_of_Other_Intangible_A
Schedule of Other Intangible Assets (Narrative) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Amortization of deferred acquisition costs | $1,317 | $1,362 | $1,274 | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 1 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 2 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 2 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 2 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 2 | |||
International [Member] | ||||
Amortization of deferred acquisition costs | 204 | 223 | 152 | [1] |
Other Intangible Assets [Member] | International [Member] | ||||
Amortization of deferred acquisition costs | 2 | 15 | 33 | |
Amortization expense included in other operating expenses | $1 | $5 | $10 | |
[1] | International includes Hardy from the date of acquisition. |
Schedule_of_Other_Intangible_A1
Schedule of Other Intangible Assets (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Indefinite-lived intangible assets | $71 | $74 |
Finite-Lived Intangible Assets | 80 | 85 |
Intangible Assets, Gross (Excluding Goodwill) | 151 | 159 |
Accumulated Amortization | 66 | 66 |
Lloyds syndicate capacity [Member] | ||
Indefinite-lived intangible assets | 55 | 58 |
Agency Force [Member] | ||
Indefinite-lived intangible assets | 16 | 16 |
Value of business acquired [Member] | ||
Finite-Lived Intangible Assets | 60 | 64 |
Accumulated Amortization | 61 | 63 |
Trade name [Member] | ||
Economic useful life measured in years | 8 years | |
Finite-Lived Intangible Assets | 8 | 8 |
Accumulated Amortization | 3 | 2 |
Distribution channel [Member] | ||
Economic useful life measured in years | 15 years | |
Finite-Lived Intangible Assets | 12 | 13 |
Accumulated Amortization | $2 | $1 |
Minimum [Member] | Value of business acquired [Member] | ||
Economic useful life measured in years | 1 year | |
Maximum [Member] | Value of business acquired [Member] | ||
Economic useful life measured in years | 4 years |
Operating_Leases_Commitments_a2
Operating Leases, Commitments and Contingencies, and Guarantees (Narrative) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Loss Contingencies [Line Items] | |||
Guarantor Obligations, Maximum Exposure, Undiscounted | $1,900 | ||
Operating Leases, Rent Expense | 55 | 46 | 52 |
Operating Leases, Income Statement, Sublease Revenue | 1 | 3 | 2 |
Guarantee Obligations [Member] | |||
Loss Contingencies [Line Items] | |||
Guarantor Obligations, Maximum Exposure, Undiscounted | 375 | ||
Indemnification Agreement [Member] | |||
Loss Contingencies [Line Items] | |||
Guarantor Obligations, Maximum Exposure, Undiscounted | 324 | ||
Property Lease Guarantee [Member] | |||
Loss Contingencies [Line Items] | |||
Guarantor Obligations, Maximum Exposure, Undiscounted | $50 |
Operating_Leases_Commitments_a3
Operating Leases, Commitments and Contingencies, and Guarantees (Future Minimum Lease Payments and Sublease Receipts) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Operating Leases, Commitments and Contingencies, and Guarantees [Abstract] | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $36 |
Operating Leases, Future Minimum Payments, Due in Two Years | 35 |
Operating Leases, Future Minimum Payments, Due in Three Years | 30 |
Operating Leases, Future Minimum Payments, Due in Four Years | 25 |
Operating Leases, Future Minimum Payments, Due in Five Years | 21 |
Operating Leases, Future Minimum Payments, Due Thereafter | 98 |
Operating Leases, Future Minimum Payments Due | 245 |
Operating Leases, Future Minimum Payments Receivable, in Five Years | 1 |
Operating Leases, Future Minimum Payments Receivable, Thereafter | 1 |
Operating Leases, Future Minimum Payments Receivable | $2 |
Stockholders_Equity_and_Statut2
Stockholders' Equity and Statutory Accounting Practices (Narrative) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Capital Required for Capital Adequacy to Risk Weighted Assets | 270.00% | 265.00% |
Dividends payable without prior supervisory approval | $466 | |
Hardy [Member] | ||
Capital provided by CCC | $105 |
Stockholders_Equity_and_Statut3
Stockholders' Equity and Statutory Accounting Practices Combined statutory capital and surplus and net income (loss) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Combined Continental Casualty Companies [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory capital and surplus | $11,155 | $11,137 | |
Statutory net income (loss) | 914 | 913 | 391 |
Life Company [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory capital and surplus | 597 | ||
Statutory net income (loss) | $37 | $48 | $44 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) by Component (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), beginning balance | $442 | $831 |
Change due to sale of subsidiaries | 0 | |
Other comprehensive income (loss), before reclassifications | 8 | -388 |
Amounts reclassified from accumulated other comprehensive income (loss) after tax (expense) benefit | 50 | 1 |
Other comprehensive income (loss) after tax (expense) benefit | -42 | -389 |
Accumulated other comprehensive income (loss), ending balance | 400 | 442 |
Tax (expense) benefit on amounts reclassified from accumulated other comprehensive income (loss) | -26 | 1 |
Tax (expense) benefit on other comprehensive income (loss) | -4 | 203 |
Net unrealized gains (losses) on investments with OTTI losses [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), beginning balance | 26 | 20 |
Change due to sale of subsidiaries | -5 | |
Other comprehensive income (loss), before reclassifications | 15 | 6 |
Amounts reclassified from accumulated other comprehensive income (loss) after tax (expense) benefit | 0 | 0 |
Other comprehensive income (loss) after tax (expense) benefit | 15 | 6 |
Accumulated other comprehensive income (loss), ending balance | 36 | 26 |
Tax (expense) benefit on amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 |
Tax (expense) benefit on other comprehensive income (loss) | -8 | -3 |
Net unrealized gains (losses) on other investments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), beginning balance | 692 | 1,371 |
Change due to sale of subsidiaries | -17 | |
Other comprehensive income (loss), before reclassifications | 295 | -658 |
Amounts reclassified from accumulated other comprehensive income (loss) after tax (expense) benefit | 28 | 21 |
Other comprehensive income (loss) after tax (expense) benefit | 267 | -679 |
Accumulated other comprehensive income (loss), ending balance | 942 | 692 |
Tax (expense) benefit on amounts reclassified from accumulated other comprehensive income (loss) | -10 | -10 |
Tax (expense) benefit on other comprehensive income (loss) | -122 | 364 |
Accumulated Net Unrealized Gains Losses on discontinued operations [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), beginning balance | 0 | |
Change due to sale of subsidiaries | 22 | |
Other comprehensive income (loss), before reclassifications | 12 | |
Amounts reclassified from accumulated other comprehensive income (loss) after tax (expense) benefit | 34 | |
Other comprehensive income (loss) after tax (expense) benefit | -22 | |
Accumulated other comprehensive income (loss), ending balance | 0 | |
Tax (expense) benefit on amounts reclassified from accumulated other comprehensive income (loss) | -23 | |
Tax (expense) benefit on other comprehensive income (loss) | 15 | |
Pension and postretirement benefits [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), beginning balance | -426 | -721 |
Change due to sale of subsidiaries | 0 | |
Other comprehensive income (loss), before reclassifications | -219 | 275 |
Amounts reclassified from accumulated other comprehensive income (loss) after tax (expense) benefit | -12 | -20 |
Other comprehensive income (loss) after tax (expense) benefit | -207 | 295 |
Accumulated other comprehensive income (loss), ending balance | -633 | -426 |
Tax (expense) benefit on amounts reclassified from accumulated other comprehensive income (loss) | 7 | 11 |
Tax (expense) benefit on other comprehensive income (loss) | 111 | -158 |
Cumulative foreign currency translation adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), beginning balance | 150 | 161 |
Change due to sale of subsidiaries | 0 | |
Other comprehensive income (loss), before reclassifications | -95 | -11 |
Amounts reclassified from accumulated other comprehensive income (loss) after tax (expense) benefit | 0 | 0 |
Other comprehensive income (loss) after tax (expense) benefit | -95 | -11 |
Accumulated other comprehensive income (loss), ending balance | 55 | 150 |
Tax (expense) benefit on amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 |
Tax (expense) benefit on other comprehensive income (loss) | $0 | $0 |
Business_Segments_Narrative_De
Business Segments (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Business Segments [Abstract] | |||
Percentage of direct foreign written premiums | 8.80% | 9.00% | 9.20% |
Business_Segments_Income_State
Business Segments (Income Statement Information) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Segment Reporting Information [Line Items] | ||||
Net written premiums | $7,088 | $7,348 | $6,964 | |
Operating Revenues | ||||
Net earned premiums | 7,212 | 7,271 | 6,881 | |
Net investment income | 2,067 | 2,282 | 2,110 | |
Other revenues | 356 | 359 | 319 | |
Total operating revenues | 9,635 | 9,912 | 9,310 | |
Claims, Benefits and Expenses | ||||
Net incurred claims and benefits | 5,577 | 5,793 | 5,716 | |
Policyholders' dividends | 14 | 13 | 13 | |
Amortization of deferred acquisition costs | 1,317 | 1,362 | 1,274 | |
Other insurance related expenses | 1,029 | 1,013 | 1,047 | |
Other expenses | 548 | 475 | 455 | |
Total claims, benefits and expenses | 8,485 | 8,656 | 8,505 | |
Operating income (loss) from continuing operations before income tax | 1,150 | 1,256 | 805 | |
Income tax (expense) benefit on operating income (loss) | -301 | -355 | -220 | |
Net operating income (loss) from continuing operations | 849 | 901 | 585 | |
Net realized investment gains (losses), pre-tax | 57 | 20 | 54 | |
Income tax (expense) benefit on net realized investment gains (losses) | -18 | -6 | -19 | |
Net realized investment gains (losses), after tax | 39 | 14 | 35 | |
Net income (loss) from continuing operations | 888 | 915 | 620 | |
Specialty [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net written premiums | 2,839 | 2,880 | 2,733 | |
Operating Revenues | ||||
Net earned premiums | 2,838 | 2,795 | 2,709 | |
Net investment income | 560 | 629 | 564 | |
Other revenues | 295 | 257 | 231 | |
Total operating revenues | 3,693 | 3,681 | 3,504 | |
Claims, Benefits and Expenses | ||||
Net incurred claims and benefits | 1,627 | 1,593 | 1,746 | |
Policyholders' dividends | 6 | 6 | 2 | |
Amortization of deferred acquisition costs | 592 | 585 | 574 | |
Other insurance related expenses | 262 | 250 | 278 | |
Other expenses | 254 | 237 | 207 | |
Total claims, benefits and expenses | 2,741 | 2,671 | 2,807 | |
Operating income (loss) from continuing operations before income tax | 952 | 1,010 | 697 | |
Income tax (expense) benefit on operating income (loss) | -318 | -342 | -235 | |
Net operating income (loss) from continuing operations | 634 | 668 | 462 | |
Net realized investment gains (losses), pre-tax | 15 | -5 | 18 | |
Income tax (expense) benefit on net realized investment gains (losses) | -5 | 2 | -8 | |
Net realized investment gains (losses), after tax | 10 | -3 | 10 | |
Net income (loss) from continuing operations | 644 | 665 | 472 | |
Commercial [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net written premiums | 2,817 | 2,960 | 3,033 | |
Operating Revenues | ||||
Net earned premiums | 2,906 | 3,004 | 2,968 | |
Net investment income | 723 | 899 | 826 | |
Other revenues | 38 | 96 | 41 | |
Total operating revenues | 3,667 | 3,999 | 3,835 | |
Claims, Benefits and Expenses | ||||
Net incurred claims and benefits | 2,187 | 2,259 | 2,370 | |
Policyholders' dividends | 8 | 7 | 11 | |
Amortization of deferred acquisition costs | 493 | 526 | 520 | |
Other insurance related expenses | 487 | 498 | 532 | |
Other expenses | 31 | 32 | 37 | |
Total claims, benefits and expenses | 3,206 | 3,322 | 3,470 | |
Operating income (loss) from continuing operations before income tax | 461 | 677 | 365 | |
Income tax (expense) benefit on operating income (loss) | -154 | -229 | -120 | |
Net operating income (loss) from continuing operations | 307 | 448 | 245 | |
Net realized investment gains (losses), pre-tax | 16 | -15 | 34 | |
Income tax (expense) benefit on net realized investment gains (losses) | -6 | 5 | -11 | |
Net realized investment gains (losses), after tax | 10 | -10 | 23 | |
Net income (loss) from continuing operations | 317 | 438 | 268 | |
International [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net written premiums | 880 | 959 | 648 | [1] |
Operating Revenues | ||||
Net earned premiums | 913 | 916 | 647 | [1] |
Net investment income | 61 | 60 | 59 | [1] |
Other revenues | 0 | 0 | -1 | [1] |
Total operating revenues | 974 | 976 | 705 | [1] |
Claims, Benefits and Expenses | ||||
Net incurred claims and benefits | 488 | 489 | 361 | [1] |
Policyholders' dividends | 0 | 0 | 0 | [1] |
Amortization of deferred acquisition costs | 204 | 223 | 152 | [1] |
Other insurance related expenses | 151 | 140 | 94 | [1] |
Other expenses | 28 | 12 | 7 | [1] |
Total claims, benefits and expenses | 871 | 864 | 614 | [1] |
Operating income (loss) from continuing operations before income tax | 103 | 112 | 91 | [1] |
Income tax (expense) benefit on operating income (loss) | -34 | -43 | -40 | [1] |
Net operating income (loss) from continuing operations | 69 | 69 | 51 | [1] |
Net realized investment gains (losses), pre-tax | -1 | 5 | 7 | [1] |
Income tax (expense) benefit on net realized investment gains (losses) | 1 | -2 | -1 | [1] |
Net realized investment gains (losses), after tax | 0 | 3 | 6 | [1] |
Net income (loss) from continuing operations | 69 | 72 | 57 | [1] |
Life and Group Non-Core [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net written premiums | 553 | 552 | 553 | |
Operating Revenues | ||||
Net earned premiums | 556 | 559 | 559 | |
Net investment income | 700 | 662 | 629 | |
Other revenues | 16 | -4 | 33 | |
Total operating revenues | 1,272 | 1,217 | 1,221 | |
Claims, Benefits and Expenses | ||||
Net incurred claims and benefits | 1,304 | 1,261 | 1,255 | |
Policyholders' dividends | 0 | 0 | 0 | |
Amortization of deferred acquisition costs | 28 | 28 | 28 | |
Other insurance related expenses | 130 | 130 | 142 | |
Other expenses | 30 | 13 | 22 | |
Total claims, benefits and expenses | 1,492 | 1,432 | 1,447 | |
Operating income (loss) from continuing operations before income tax | -220 | -215 | -226 | |
Income tax (expense) benefit on operating income (loss) | 151 | 141 | 134 | |
Net operating income (loss) from continuing operations | -69 | -74 | -92 | |
Net realized investment gains (losses), pre-tax | 7 | 26 | -9 | |
Income tax (expense) benefit on net realized investment gains (losses) | 0 | -8 | 3 | |
Net realized investment gains (losses), after tax | 7 | 18 | -6 | |
Net income (loss) from continuing operations | -62 | -56 | -98 | |
Corporate and Other Non-Core [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net written premiums | 1 | -1 | -1 | |
Operating Revenues | ||||
Net earned premiums | 1 | -1 | 0 | |
Net investment income | 23 | 32 | 32 | |
Other revenues | 12 | 12 | 16 | |
Total operating revenues | 36 | 43 | 48 | |
Claims, Benefits and Expenses | ||||
Net incurred claims and benefits | -29 | 191 | -16 | |
Policyholders' dividends | 0 | 0 | 0 | |
Amortization of deferred acquisition costs | 0 | 0 | 0 | |
Other insurance related expenses | 1 | -3 | 3 | |
Other expenses | 210 | 183 | 183 | |
Total claims, benefits and expenses | 182 | 371 | 170 | |
Operating income (loss) from continuing operations before income tax | -146 | -328 | -122 | |
Income tax (expense) benefit on operating income (loss) | 54 | 118 | 41 | |
Net operating income (loss) from continuing operations | -92 | -210 | -81 | |
Net realized investment gains (losses), pre-tax | 20 | 9 | 4 | |
Income tax (expense) benefit on net realized investment gains (losses) | -8 | -3 | -2 | |
Net realized investment gains (losses), after tax | 12 | 6 | 2 | |
Net income (loss) from continuing operations | -80 | -204 | -79 | |
Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net written premiums | -2 | -2 | -2 | |
Operating Revenues | ||||
Net earned premiums | -2 | -2 | -2 | |
Net investment income | 0 | 0 | 0 | |
Other revenues | -5 | -2 | -1 | |
Total operating revenues | -7 | -4 | -3 | |
Claims, Benefits and Expenses | ||||
Net incurred claims and benefits | 0 | 0 | 0 | |
Policyholders' dividends | 0 | 0 | 0 | |
Amortization of deferred acquisition costs | 0 | 0 | 0 | |
Other insurance related expenses | -2 | -2 | -2 | |
Other expenses | -5 | -2 | -1 | |
Total claims, benefits and expenses | -7 | -4 | -3 | |
Operating income (loss) from continuing operations before income tax | 0 | 0 | 0 | |
Income tax (expense) benefit on operating income (loss) | 0 | 0 | 0 | |
Net operating income (loss) from continuing operations | 0 | 0 | ||
Net realized investment gains (losses), pre-tax | 0 | 0 | 0 | |
Income tax (expense) benefit on net realized investment gains (losses) | 0 | 0 | 0 | |
Net realized investment gains (losses), after tax | 0 | 0 | 0 | |
Net income (loss) from continuing operations | $0 | $0 | $0 | |
[1] | International includes Hardy from the date of acquisition. |
Business_Segments_Balance_Shee
Business Segments (Balance Sheet Information) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ||
Reinsurance receivables | $4,742 | $6,088 |
Insurance receivables | 1,997 | 2,063 |
Deferred acquisition costs | 600 | 624 |
Goodwill | 152 | 155 |
Insurance reserves | ||
Claim and claim adjustment expenses | 23,271 | 24,089 |
Unearned premiums | 3,592 | 3,718 |
Future policy benefits | 9,490 | 10,471 |
Policyholders’ funds | 27 | 116 |
Specialty [Member] | ||
Segment Reporting Information [Line Items] | ||
Reinsurance receivables | 567 | 500 |
Insurance receivables | 778 | 732 |
Deferred acquisition costs | 304 | 299 |
Goodwill | 117 | 117 |
Insurance reserves | ||
Claim and claim adjustment expenses | 6,229 | 6,058 |
Unearned premiums | 1,763 | 1,710 |
Future policy benefits | 0 | 0 |
Policyholders’ funds | 9 | 9 |
Commercial [Member] | ||
Segment Reporting Information [Line Items] | ||
Reinsurance receivables | 690 | 1,024 |
Insurance receivables | 954 | 1,019 |
Deferred acquisition costs | 213 | 226 |
Goodwill | 0 | 0 |
Insurance reserves | ||
Claim and claim adjustment expenses | 9,514 | 10,091 |
Unearned premiums | 1,273 | 1,374 |
Future policy benefits | 0 | 0 |
Policyholders’ funds | 18 | 15 |
International [Member] | ||
Segment Reporting Information [Line Items] | ||
Reinsurance receivables | 207 | 294 |
Insurance receivables | 250 | 299 |
Deferred acquisition costs | 83 | 99 |
Goodwill | 35 | 38 |
Insurance reserves | ||
Claim and claim adjustment expenses | 1,441 | 1,575 |
Unearned premiums | 431 | 506 |
Future policy benefits | 0 | 0 |
Policyholders’ funds | 0 | 0 |
Life and Group Non-Core [Member] | ||
Segment Reporting Information [Line Items] | ||
Reinsurance receivables | 525 | 1,203 |
Insurance receivables | 13 | 11 |
Deferred acquisition costs | 0 | 0 |
Goodwill | 0 | 0 |
Insurance reserves | ||
Claim and claim adjustment expenses | 3,183 | 3,058 |
Unearned premiums | 125 | 128 |
Future policy benefits | 9,490 | 10,471 |
Policyholders’ funds | 0 | 92 |
Corporate and Other Non-Core [Member] | ||
Segment Reporting Information [Line Items] | ||
Reinsurance receivables | 2,753 | 3,067 |
Insurance receivables | 2 | 2 |
Deferred acquisition costs | 0 | 0 |
Goodwill | 0 | 0 |
Insurance reserves | ||
Claim and claim adjustment expenses | 2,904 | 3,307 |
Unearned premiums | 0 | 0 |
Future policy benefits | 0 | 0 |
Policyholders’ funds | 0 | 0 |
Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Reinsurance receivables | 0 | 0 |
Insurance receivables | 0 | 0 |
Deferred acquisition costs | 0 | 0 |
Goodwill | 0 | 0 |
Insurance reserves | ||
Claim and claim adjustment expenses | 0 | 0 |
Unearned premiums | 0 | 0 |
Future policy benefits | 0 | 0 |
Policyholders’ funds | $0 | $0 |
Business_Segments_Revenues_by_
Business Segments (Revenues by Line of Business) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues | $2,378 | $2,411 | $2,440 | $2,463 | $2,569 | $2,458 | $2,450 | $2,455 | $9,692 | $9,932 | $9,364 |
Specialty [Domain] | |||||||||||
Revenues | 3,708 | 3,676 | 3,522 | ||||||||
Management & Professional Liability [Member] | |||||||||||
Revenues | 2,818 | 2,836 | 2,723 | ||||||||
Surety [Member] | |||||||||||
Revenues | 509 | 490 | 485 | ||||||||
Warranty & Alternative Risks [Member] | |||||||||||
Revenues | 381 | 350 | 314 | ||||||||
Commercial [Domain] | |||||||||||
Revenues | 3,683 | 3,984 | 3,869 | ||||||||
Middle Markets [Member] | |||||||||||
Revenues | 1,631 | 1,642 | 1,560 | ||||||||
Small Business [Member] | |||||||||||
Revenues | 709 | 754 | 669 | ||||||||
Other Commercial Insurance [Member] | |||||||||||
Revenues | 1,343 | 1,588 | 1,640 | ||||||||
International [Domain] | |||||||||||
Revenues | 973 | 981 | 712 | ||||||||
Canada [Member] | |||||||||||
Revenues | 273 | 289 | 276 | ||||||||
CNA Europe [Member] | |||||||||||
Revenues | 335 | 326 | 313 | ||||||||
Hardy [Member] | |||||||||||
Revenues | 365 | 366 | 123 | ||||||||
Life and Group Non-Core [Member] | |||||||||||
Revenues | 1,279 | 1,243 | 1,212 | ||||||||
Corporate and Other Non-Core [Member] | |||||||||||
Revenues | 56 | 52 | 52 | ||||||||
Eliminations [Member] | |||||||||||
Revenues | ($7) | ($4) | ($3) |
Discontinued_Operations_Income
Discontinued Operations Income Statement Information (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues | |||
Net Earned Premium | $1 | ||
Net Investment Income | 94 | 168 | 172 |
Net Realized Investment Gains (Losses) | 3 | 11 | 9 |
Other Revenues | 2 | 1 | |
Total Revenues | 97 | 181 | 183 |
Claims, Benefits and Expenses | |||
Insurance Claims and Policyholders' Benefits | 75 | 141 | 167 |
Other Operating Expenses | 2 | 3 | 3 |
Total Claims, Benefits and Expenses | 77 | 144 | 170 |
Income before Income Tax | 20 | 37 | 13 |
Income tax (expense) benefit | -6 | -15 | -5 |
Income from operations of discontinued operations, net of income tax | 14 | 22 | 8 |
Loss on sale, net of income tax (expense) benefit of $40, - and - | -211 | ||
Income (Loss) from Discontinued Operations | -197 | 22 | 8 |
Income tax benefit (expense) on impairment | $40 |
Discontinued_Operations_Narrat
Discontinued Operations (Narrative) (Details) (USD $) | Aug. 01, 2014 |
In Millions, unless otherwise specified | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Group, Including Discontinued Operation, Assets | $3,550 |
Disposal Group, Including Discontinued Operation, Liabilities | $3,297 |
Quarterly_Financial_Data_Unaud2
Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||||
Quarterly Financial Data [Abstract] | |||||||||||||||||||||
Revenues | $2,378 | $2,411 | $2,440 | $2,463 | $2,569 | $2,458 | $2,450 | $2,455 | $9,692 | $9,932 | $9,364 | ||||||||||
Net income (loss) | $198 | [1] | $213 | [1] | $267 | [1] | $13 | [1] | $221 | $272 | $194 | $250 | $691 | [1] | $937 | $628 | |||||
Basic earnings (loss) per share | $0.73 | $0.79 | $0.99 | $0.05 | $0.82 | $1.01 | $0.72 | $0.93 | $2.56 | $3.48 | $2.33 | ||||||||||
Diluted earnings (loss) per share | $0.73 | $0.79 | $0.98 | $0.05 | $0.82 | [2] | $1.01 | [2] | $0.72 | [2] | $0.93 | [2] | $2.55 | $3.47 | [2] | $2.33 | |||||
[1] | Net income in the first quarter of 2014 includes the impairment loss on the sale of CAC. | ||||||||||||||||||||
[2] | Due to the averaging of shares, quarterly earnings per share do not add to the total for the full year. |
Related_Party_Transactions_Nar
Related Party Transactions Narrative (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Due to Related Parties | $153 | $197 | |
Fees and expenses of investment facilities and services [Member] | |||
Amounts reimbursed to Loews for services provided to the Company | 39 | 37 | 36 |
Due to Related Parties | 21 | 19 | |
Loews [Member] | |||
Amounts earned from Loews for insurance premiums | 2 | 2 | 2 |
Corporate Services and Related Travel Expenses [Member] | |||
Amounts reimbursed to Loews for services provided to the Company | 4 | 4 | |
Taxes paid [Member] | |||
Due to Related Parties | $132 | $178 |
Schedule_II_Condensed_Financia1
Schedule II. Condensed Financial Information of Registrant (Parent Company) (Schedule of Condensed Financial Information of Registrant, Statements of Operations and Comprehensive Income) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||
Revenues | ||||||||||||||||
Net realized investment gains (losses) | $57 | $20 | $54 | |||||||||||||
Other revenues | 356 | 359 | 319 | |||||||||||||
Total revenues | 2,378 | 2,411 | 2,440 | 2,463 | 2,569 | 2,458 | 2,450 | 2,455 | 9,692 | 9,932 | 9,364 | |||||
Claims, Benefits and Expenses | ||||||||||||||||
Interest | 183 | 166 | 170 | |||||||||||||
Income tax expense (benefit) | -319 | -361 | -239 | |||||||||||||
Net income (loss) | 198 | [1] | 213 | [1] | 267 | [1] | 13 | [1] | 221 | 272 | 194 | 250 | 691 | [1] | 937 | 628 |
Total comprehensive income (loss) | 649 | 548 | 979 | |||||||||||||
Parent Company [Member] | ||||||||||||||||
Revenues | ||||||||||||||||
Net investment income | 1 | 1 | 1 | |||||||||||||
Net realized investment gains (losses) | 4 | 4 | 4 | |||||||||||||
Other revenues | 9 | |||||||||||||||
Total revenues | 5 | 5 | 14 | |||||||||||||
Claims, Benefits and Expenses | ||||||||||||||||
Administrative and general | 5 | -7 | 1 | |||||||||||||
Interest | 182 | 165 | 164 | |||||||||||||
Total expenses | 187 | 158 | 165 | |||||||||||||
Income (loss) from operations before income taxes and equity in net income of subsidiaries | -182 | -153 | -151 | |||||||||||||
Income tax expense (benefit) | 35 | 22 | 144 | |||||||||||||
Income (loss) before equity in net income (loss) of subsidiaries | -147 | -131 | -7 | |||||||||||||
Equity in net income of subsidiaries | 838 | 1,068 | 635 | |||||||||||||
Net income (loss) | 691 | 937 | 628 | |||||||||||||
Equity in other comprehensive income of subsidiaries | -42 | -389 | 351 | |||||||||||||
Total comprehensive income (loss) | $649 | $548 | $979 | |||||||||||||
[1] | Net income in the first quarter of 2014 includes the impairment loss on the sale of CAC. |
Schedule_II_Condensed_Financia2
Schedule II. Condensed Financial Information of Registrant (Parent Company) (Schedule of Condensed Financial Information of Registrant, Balance Sheets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, except Share data, unless otherwise specified | ||||
Assets | ||||
Cash | $190 | $195 | $156 | $75 |
Fixed maturity securities available-for-sale, at fair value (amortized cost of $1 and $1) | 40,749 | 41,197 | ||
Short term investments | 1,706 | 1,407 | ||
Other assets | 841 | 969 | ||
Total assets | 55,566 | 57,194 | ||
Liabilities | ||||
Short term debt | 549 | |||
Long term debt | 2,559 | 2,011 | ||
Other liabilities | 3,833 | 3,408 | ||
Total liabilities | 42,772 | 44,543 | ||
Stockholders' Equity | ||||
Common stock ($2.50 par value; 500,000,000 shares authorized; 273,040,243 shares issued; 269,980,202 and 269,717,583 shares outstanding) | 683 | 683 | ||
Additional paid-in capital | 2,151 | 2,145 | ||
Retained earnings | 9,645 | 9,495 | ||
Accumulated other comprehensive income (loss) | 400 | 442 | 831 | |
Treasury stock (3,060,041 and 3,322,660 shares), at cost | -84 | -91 | ||
Notes receivable for the issuance of common stock | -1 | -23 | ||
Total stockholders’ equity | 12,794 | 12,651 | 12,314 | |
Total liabilities and stockholders' equity | 55,566 | 57,194 | ||
Balance Sheet Parenthetical | ||||
Marketable securities fixed maturities available-for-sale at amortized cost basis | 37,316 | 39,275 | ||
Common stock, par value | $0 | $2.50 | ||
Common stock, shares authorized | 500,000,000 | 500,000,000 | ||
Common stock, shares issued | 273,040,243 | 273,040,243 | ||
Common stock, shares outstanding | 269,980,202 | 269,717,583 | ||
Treasury stock, shares | 3,060,041 | 3,322,660 | ||
Parent Company [Member] | ||||
Assets | ||||
Investment in subsidiaries | 14,867 | 14,708 | ||
Cash | 1 | 1 | ||
Fixed maturity securities available-for-sale, at fair value (amortized cost of $1 and $1) | 1 | 1 | ||
Short term investments | 499 | 505 | ||
Amounts due from subsidiaries | 3 | |||
Other assets | 3 | 3 | ||
Total assets | 15,371 | 15,221 | ||
Liabilities | ||||
Short term debt | 549 | |||
Long term debt | 2,529 | 1,981 | ||
Other liabilities | 48 | 40 | ||
Total liabilities | 2,577 | 2,570 | ||
Stockholders' Equity | ||||
Common stock ($2.50 par value; 500,000,000 shares authorized; 273,040,243 shares issued; 269,980,202 and 269,717,583 shares outstanding) | 683 | 683 | ||
Additional paid-in capital | 2,151 | 2,145 | ||
Retained earnings | 9,645 | 9,495 | ||
Accumulated other comprehensive income (loss) | 400 | 442 | ||
Treasury stock (3,060,041 and 3,322,660 shares), at cost | -84 | -91 | ||
Notes receivable for the issuance of common stock | -1 | -23 | ||
Total stockholders’ equity | 12,794 | 12,651 | ||
Total liabilities and stockholders' equity | 15,371 | 15,221 | ||
Balance Sheet Parenthetical | ||||
Marketable securities fixed maturities available-for-sale at amortized cost basis | $1 | $1 | ||
Common stock, par value | $2.50 | $2.50 | ||
Common stock, shares authorized | 500,000,000 | 500,000,000 | ||
Common stock, shares issued | 273,040,243 | 273,040,243 | ||
Common stock, shares outstanding | 269,980,202 | 269,717,583 | ||
Treasury stock, shares | 3,060,041 | 3,322,660 |
Schedule_II_Condensed_Financia3
Schedule II. Condensed Financial Information of Registrant (Parent Company) (Schedule of Condensed Financial Information of Registrant, Statements of Cash Flows) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Cash Flows from Operating Activities | ||||
Net income (loss) | $691 | [1] | $937 | $628 |
Adjustments to reconcile net income (loss) to net cash flows provided (used) by operating activities: | ||||
Net realized investment (gains) losses | -57 | -20 | -54 | |
Other, net | 54 | 10 | 18 | |
Total adjustments | 749 | 267 | 622 | |
Net cash flows provided (used) by operating activities | 1,440 | 1,204 | 1,250 | |
Cash Flows from Investing Activities | ||||
Change in short term investments | -388 | 425 | -7 | |
Other, net | 16 | 11 | 16 | |
Net cash flows provided (used) by investing activities | -918 | -898 | -934 | |
Cash Flows from Financing Activities | ||||
Dividends paid to common stockholders | -541 | -216 | -162 | |
Proceeds from the issuance of debt | 546 | |||
Repayment of debt | -549 | -13 | -70 | |
Other, net | 25 | -35 | -7 | |
Net cash flows provided (used) by financing activities | -519 | -264 | -239 | |
Net change in cash | -5 | 39 | 81 | |
Cash, beginning of year | 195 | 156 | 75 | |
Cash, end of year | 190 | 195 | 156 | |
Parent Company [Member] | ||||
Cash Flows from Operating Activities | ||||
Net income (loss) | 691 | 937 | 628 | |
Adjustments to reconcile net income (loss) to net cash flows provided (used) by operating activities: | ||||
Equity in net income (loss) of subsidiaries | -838 | -1,068 | -635 | |
Dividends received from subsidiaries | 650 | 400 | 450 | |
Net realized investment (gains) losses | -4 | -4 | -4 | |
Other, net | 14 | 8 | 19 | |
Total adjustments | -178 | -664 | -170 | |
Net cash flows provided (used) by operating activities | 513 | 273 | 458 | |
Cash Flows from Investing Activities | ||||
Proceeds from fixed maturity securities | 1 | 1 | ||
Change in short term investments | 6 | -57 | -156 | |
Capital contributions to subsidiaries | -10 | -12 | -399 | |
Repayment of surplus note by subsidiary | 250 | |||
Other, net | 5 | 4 | 4 | |
Net cash flows provided (used) by investing activities | 1 | -64 | -300 | |
Cash Flows from Financing Activities | ||||
Dividends paid to common stockholders | -541 | -216 | -162 | |
Proceeds from the issuance of debt | 546 | |||
Repayment of debt | -549 | -3 | ||
Stock options exercised | 5 | 2 | 1 | |
Other, net | 25 | 9 | 3 | |
Net cash flows provided (used) by financing activities | -514 | -208 | -158 | |
Net change in cash | 1 | |||
Cash, beginning of year | 1 | |||
Cash, end of year | $1 | $1 | ||
[1] | Net income in the first quarter of 2014 includes the impairment loss on the sale of CAC. |
Schedule_II_Condensed_Financia4
Schedule II. Condensed Financial Information of Registrant (Parent Company) (Schedule II. Condensed Financial Information of Registrant (Narrative)) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | $1,900 | |
Guarantor Obligations, Current Carrying Value | 5 | 7 |
Parent Company [Member] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | 1,900 | |
Guarantor Obligations, Current Carrying Value | 5 | 0 |
Indemnification Agreement [Member] | Parent Company [Member] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | $625 |
Schedule_V_Valuation_and_Quali2
Schedule V. Valuation and Qualifying Accounts (Schedule of valuation and qualifying accounts) (Details) (Allowance for doubtful accounts, insurance and reinsurance receivables [Member], USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Allowance for doubtful accounts, insurance and reinsurance receivables [Member] | ||||||
Movement in valuation allowances and reserves [Roll Forward] | ||||||
Balance at beginning of period | $155 | $174 | $203 | |||
Charged to costs and expenses | -40 | -6 | -23 | |||
Charged to other accounts | -1 | [1] | -3 | [1] | 5 | [1] |
Deductions | -5 | -10 | -11 | |||
Balance at end of period | $109 | $155 | $174 | |||
[1] | Amount includes effects of foreign currency translation. |
Schedule_VI_Supplemental_Infor2
Schedule VI. Supplemental Information Concerning Property and Casualty Insurance Operations (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Incurred claim and claim adjustment expenses related to current year | $5,043 | $5,114 | $5,273 |
Incurred claim and claim adjustment expenses related to prior years | -36 | -115 | -182 |
Consolidated Property and Casualty Insurance Entity [Member] | |||
Deferred acquisition costs | 600 | 624 | |
Reserves for unpaid claim and claim adjustment expenses | 23,271 | 24,015 | |
Discount deducted from claim and claim adjustment expense reserves above (based on interest rates ranging from 3.5% to 8.0%) | 1,578 | 1,586 | |
Unearned Premiums | 3,592 | 3,718 | |
Net written premiums | 7,088 | 7,348 | 6,964 |
Net earned premiums | 7,212 | 7,271 | 6,881 |
Net investment income | 2,031 | 2,240 | 2,074 |
Incurred claim and claim adjustment expenses related to current year | 5,043 | 5,113 | 5,266 |
Incurred claim and claim adjustment expenses related to prior years | -39 | -115 | -180 |
Amortization of deferred acquisition costs | 1,317 | 1,362 | 1,274 |
Paid claim and claim adjustment expenses | $5,297 | $5,566 | $5,257 |
Supplemental Information Parenthetical | |||
Minimum interest rate in discount range | 3.50% | ||
Maximum interest rate in discount range | 8.00% |