Document and Entity Information
Document and Entity Information Document - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 31, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | CNA FINANCIAL CORP | |
Entity Central Index Key | 21,175 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 270,260,295 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenues | ||||
Net earned premiums | $ 1,735 | $ 1,811 | $ 3,422 | $ 3,617 |
Net investment income | 500 | 550 | 1,058 | 1,076 |
Net realized investment gains (losses): | ||||
Other-than-temporary impairment losses | (31) | (5) | (43) | (7) |
Portion of other-than-temporary impairments recognized in Other comprehensive income | 0 | 0 | 0 | 0 |
Net other-than-temporary impairment losses recognized in earnings | (31) | (5) | (43) | (7) |
Other net realized investment gains (loss) | 31 | (9) | 53 | 39 |
Net realized investment gains (losses) | 0 | (14) | 10 | 32 |
Other revenues | 92 | 93 | 189 | 178 |
Total revenues | 2,327 | 2,440 | 4,679 | 4,903 |
Claims, Benefits and Expenses | ||||
Insurance claims and policyholders' benefits | 1,469 | 1,441 | 2,808 | 2,887 |
Amortization of deferred acquisition costs | 314 | 335 | 617 | 664 |
Other operating expenses | 341 | 254 | 699 | 600 |
Interest | 39 | 46 | 78 | 90 |
Total claims, benefits and expenses | 2,163 | 2,076 | 4,202 | 4,241 |
Income (loss) from continuing operations before income tax | 164 | 364 | 477 | 662 |
Income tax (expense) benefit | (26) | (103) | (106) | (181) |
Net income (loss) from continuing operations | 138 | 261 | 371 | 481 |
(Loss) income from discontinued operations, net of income tax benefit (expense) | 0 | 6 | 0 | (201) |
Net income (loss) | $ 138 | $ 267 | $ 371 | $ 280 |
Basic Earnings (Loss) Per Share Attributable to CNA | ||||
Income from continuing operations | $ 0.51 | $ 0.97 | $ 1.37 | $ 1.78 |
(Loss) income from discontinued operations | 0 | 0.02 | 0 | (0.74) |
Basic earnings per share | 0.51 | 0.99 | 1.37 | 1.04 |
Diluted Earnings (Loss) Per Share Attributable to CNA | ||||
Income (loss) from continuing operations | 0.51 | 0.97 | 1.37 | 1.78 |
(Loss) income from discontinued operations | 0 | 0.01 | 0 | (0.75) |
Diluted earnings (loss) per share | 0.51 | 0.98 | 1.37 | 1.03 |
Dividends per share | $ 0.25 | $ 0.25 | $ 2.50 | $ 1.50 |
Weighted Average Outstanding Common Stock and Common Stock Equivalents | ||||
Basic | 270.3 | 269.9 | 270.2 | 269.9 |
Diluted | 270.7 | 270.6 | 270.7 | 270.5 |
Consolidated Statements of Ope3
Consolidated Statements of Operations Parenthetical (Parentheticals) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | ||||
Income tax (expense) benefit on discontinued operations | $ 0 | $ (1) | $ 0 | $ 37 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Other Comprehensive Income (Loss), Net of Tax, Changes In: | ||||
Net unrealized gains (losses) on investments with other-than-temporary impairments | $ (4) | $ 2 | $ (5) | $ 14 |
Net unrealized gains (losses) on other investments | (365) | 270 | (253) | 507 |
Net unrealized gains (losses) on investments | (369) | 272 | (258) | 521 |
Net unrealized gains (losses) on discontinued operations | 0 | 7 | 0 | 15 |
Foreign currency translation adjustment | 49 | 42 | (47) | 34 |
Pension and postretirement benefits | 42 | (51) | 48 | (50) |
Other comprehensive income (loss) | (278) | 270 | (257) | 520 |
Net income (loss) | 138 | 267 | 371 | 280 |
Total comprehensive income (loss) | $ (140) | $ 537 | $ 114 | $ 800 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Investments: | ||
Fixed maturity securities at fair value | $ 39,849 | $ 40,768 |
Equity securities at fair value | 216 | 222 |
Limited partnership investments | 2,930 | 2,937 |
Other invested assets | 43 | 41 |
Mortgage loans | 622 | 588 |
Short term investments | 1,672 | 1,706 |
Total investments | 45,332 | 46,262 |
Cash | 145 | 190 |
Reinsurance receivables | 4,654 | 4,694 |
Insurance receivables | 2,187 | 1,936 |
Accrued investment income | 397 | 405 |
Deferred acquisition costs | 621 | 600 |
Deferred income taxes | 255 | 191 |
Property and equipment at cost | 317 | 295 |
Goodwill | 153 | 152 |
Other assets | 961 | 841 |
Total assets | 55,022 | 55,566 |
Insurance reserves: | ||
Claim and claim adjustment expenses | 23,193 | 23,271 |
Unearned premiums | 3,815 | 3,592 |
Future policy benefits | 9,360 | 9,490 |
Policyholders’ funds | 0 | 27 |
Long term debt | 2,560 | 2,559 |
Other liabilities | 3,860 | 3,833 |
Total liabilities | 42,788 | 42,772 |
Stockholders' Equity | ||
Common stock | 683 | 683 |
Additional paid-in capital | 2,146 | 2,151 |
Retained earnings | 9,340 | 9,645 |
Accumulated other comprehensive income (loss) | 143 | 400 |
Treasury stock | (78) | (84) |
Notes receivable for the issuance of common stock | 0 | (1) |
Total stockholders’ equity | 12,234 | 12,794 |
Total liabilities and stockholders' equity | $ 55,022 | $ 55,566 |
Consolidated Balance Sheet Pare
Consolidated Balance Sheet Parentheticals (Parentheticals) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Fixed maturities securities at amortized cost | $ 37,199 | $ 37,335 |
Equity securities at cost | 208 | 210 |
Reinsurance Recoverables, Allowance | 48 | 48 |
Premiums Receivable, Allowance for Doubtful Accounts | 58 | 61 |
Accumulated depreciation on property and equipment | 376 | 364 |
Due to Related Parties | $ 72 | $ 153 |
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 | 270,259,928 | 269,980,202 |
Treasury stock, shares | 2,780,315 | 3,060,041 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash Flows from Operating Activities | ||
Net income (loss) | $ 371 | $ 280 |
Adjustments to reconcile net income (loss) to net cash flows provided (used) by operating activities: | ||
Impairment loss on sale of subsidiary | 0 | 255 |
Deferred income tax expense (benefit) | 32 | 48 |
Trading portfolio activity | 1 | 17 |
Net realized investment (gains) losses | (10) | (34) |
Equity method investees | (48) | 75 |
Net amortization of investments | (13) | 0 |
Depreciation and amortization | 39 | 42 |
Changes in: | ||
Receivables, net | (211) | 6 |
Accrued investment income | 8 | (3) |
Deferred acquisition costs | (8) | (10) |
Insurance reserves | 451 | 234 |
Other assets | (60) | (50) |
Other liabilities | (94) | (201) |
Other, net | 82 | (72) |
Total adjustments | 169 | 307 |
Net cash flows provided (used) by operating activities | 540 | 587 |
Dispositions: | ||
Fixed maturity securities - sales | 2,859 | 2,919 |
Fixed maturity securities - maturities, calls and redemptions | 2,304 | 1,954 |
Equity securities | 33 | 14 |
Limited partnerships | 85 | 118 |
Mortgage loans | 19 | 33 |
Purchases: | ||
Fixed maturity securities | (5,029) | (4,921) |
Equity securities | (30) | (11) |
Limited partnerships | (78) | (109) |
Mortgage Loans | (60) | (43) |
Change in other investments | 8 | 10 |
Change in short term investments | 33 | (678) |
Purchases of property and equipment | (57) | (27) |
Other, net | 0 | 7 |
Net cash flows provided (used) by investing activities | 87 | (734) |
Cash Flows from Financing Activities | ||
Dividends paid to common stockholders | (676) | (406) |
Proceeds from the issuance of debt | 0 | 546 |
Other, net | 6 | 23 |
Net cash flows provided (used) by financing activities | (670) | 163 |
Effect of foreign exchange rate changes on cash | (2) | 2 |
Transfer of cash to assets held for sale | 0 | (9) |
Net change in cash | (45) | 9 |
Cash, beginning of year | 190 | 195 |
Cash, end of period | $ 145 | $ 204 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity $ in Millions | USD ($) |
Balance, beginning of year at Dec. 31, 2013 | $ 683 |
Balance, end of period at Jun. 30, 2014 | 683 |
Balance, beginning of year at Dec. 31, 2013 | 2,145 |
Additional Paid-in Capital | |
Stock-based compensation | 1 |
Balance, end of period at Jun. 30, 2014 | 2,146 |
Balance, beginning of year at Dec. 31, 2013 | 9,495 |
Retained Earnings (Accumulated Deficit) | |
Dividends paid to common stockholders | (406) |
Net income (loss) | 280 |
Balance, end of period at Jun. 30, 2014 | 9,369 |
Accumulated other comprehensive income (loss), beginning balance at Dec. 31, 2013 | 442 |
Accumulated Other Comprehensive Income (Loss) | |
Other comprehensive income (loss) | 520 |
Accumulated other comprehensive income (loss), ending balance at Jun. 30, 2014 | 962 |
Balance, beginning of year at Dec. 31, 2013 | (91) |
Treasury Stock | |
Stock Based Compensation and Other | 6 |
Balance, end of period at Jun. 30, 2014 | (85) |
Balance, beginning of year at Dec. 31, 2013 | (23) |
Notes Receivable for the Issuance of Common Stock | |
Decrease (increase) in notes receivable from the issuance of common stock | 22 |
Balance, end of period at Jun. 30, 2014 | (1) |
Balance, end of period at Jun. 30, 2014 | 683 |
Balance, end of period at Jun. 30, 2014 | 2,146 |
Retained Earnings (Accumulated Deficit) | |
Net income (loss) | 267 |
Balance, end of period at Jun. 30, 2014 | 9,369 |
Accumulated other comprehensive income (loss), beginning balance at Mar. 31, 2014 | 692 |
Accumulated Other Comprehensive Income (Loss) | |
Other comprehensive income (loss) | 270 |
Accumulated other comprehensive income (loss), ending balance at Jun. 30, 2014 | 962 |
Balance, end of period at Jun. 30, 2014 | (85) |
Balance, end of period at Jun. 30, 2014 | (1) |
Notes Receivable for the Issuance of Common Stock | |
Total stockholders’ equity | 13,074 |
Total stockholders’ equity | 12,794 |
Balance, beginning of year at Dec. 31, 2014 | 683 |
Balance, end of period at Jun. 30, 2015 | 683 |
Balance, beginning of year at Dec. 31, 2014 | 2,151 |
Additional Paid-in Capital | |
Stock-based compensation | (5) |
Balance, end of period at Jun. 30, 2015 | 2,146 |
Balance, beginning of year at Dec. 31, 2014 | 9,645 |
Retained Earnings (Accumulated Deficit) | |
Dividends paid to common stockholders | (676) |
Net income (loss) | 371 |
Balance, end of period at Jun. 30, 2015 | 9,340 |
Accumulated other comprehensive income (loss), beginning balance at Dec. 31, 2014 | 400 |
Accumulated Other Comprehensive Income (Loss) | |
Other comprehensive income (loss) | (257) |
Accumulated other comprehensive income (loss), ending balance at Jun. 30, 2015 | 143 |
Balance, beginning of year at Dec. 31, 2014 | (84) |
Treasury Stock | |
Stock Based Compensation and Other | 6 |
Balance, end of period at Jun. 30, 2015 | (78) |
Balance, beginning of year at Dec. 31, 2014 | (1) |
Notes Receivable for the Issuance of Common Stock | |
Decrease (increase) in notes receivable from the issuance of common stock | 1 |
Balance, end of period at Jun. 30, 2015 | 0 |
Balance, end of period at Jun. 30, 2015 | 683 |
Balance, end of period at Jun. 30, 2015 | 2,146 |
Retained Earnings (Accumulated Deficit) | |
Net income (loss) | 138 |
Balance, end of period at Jun. 30, 2015 | 9,340 |
Accumulated other comprehensive income (loss), beginning balance at Mar. 31, 2015 | 421 |
Accumulated Other Comprehensive Income (Loss) | |
Other comprehensive income (loss) | (278) |
Accumulated other comprehensive income (loss), ending balance at Jun. 30, 2015 | 143 |
Balance, end of period at Jun. 30, 2015 | (78) |
Balance, end of period at Jun. 30, 2015 | 0 |
Notes Receivable for the Issuance of Common Stock | |
Total stockholders’ equity | $ 12,234 |
General
General | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation, Basis of Presentation, Business Description of Accounting Policies [Text Block] | Note A . General Basis of Presentation The Condensed Consolidated Financial Statements (Unaudited) 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 June 30, 2015 . The accompanying Condensed 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. Certain financial information that is normally included in annual financial statements, including certain financial statement notes, prepared in accordance with GAAP, is not required for interim reporting purposes and has been condensed or omitted. These statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in CNAF's Annual Report on Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 2014 , including the summary of significant accounting policies in Note A. The preparation of condensed 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 Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting periods. Actual results may differ from those estimates. The interim financial data as of June 30, 2015 and for the three and six months ended June 30, 2015 and 2014 is unaudited. However, in the opinion of management, the interim data includes all adjustments, including normal recurring adjustments, necessary for a fair statement of the Company's results for the interim periods. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. Sale of Continental Assurance Company (CAC) On August 1, 2014, the Company completed the sale of the common stock of CAC, the Company's former life insurance subsidiary. In the first quarter of 2014, the Company recorded an after-tax impairment loss of $214 million related to the sale. The Company elected to include CAC cash flow activity in the comparative Condensed Consolidated Statement of Cash Flows. Further information on discontinued operations is provided in Note K to the Condensed Consolidated Financial Statements. Recently Issued Accounting Standards Update - Disclosures about Short-Duration Contracts In May of 2015, the Financial Accounting Standards Board issued updated accounting guidance requiring enhanced disclosures to provide additional information about insurance liabilities for short-duration contracts. The updated guidance is effective for annual financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within the annual periods beginning after December 15, 2016. The Company is currently evaluating the effect the updated guidance will have on the Company's financial statement disclosures. |
Earnings Per Share Earnings Per
Earnings Per Share Earnings Per Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Note B . Earnings Per Share Earnings per share is based on the weighted average number of outstanding common shares. Basic earnings (loss) per share excludes the effect 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 three and six months ended June 30, 2015 , approximately 423 thousand and 543 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 238 thousand and 208 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. For the three and six months ended June 30, 2014 , approximately 622 thousand and 644 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 180 thousand and 110 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. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2015 | |
Investments [Abstract] | |
Investments | Note C . Investments The significant components of Net investment income are presented in the following table. Periods ended June 30 Three Months Six Months (In millions) 2015 2014 2015 2014 Fixed maturity securities $ 452 $ 451 $ 895 $ 903 Short term investments — — 2 1 Limited partnership investments 48 97 162 170 Equity securities 3 3 6 5 Mortgage loans 9 9 17 15 Trading portfolio 3 3 5 6 Other — 1 — 3 Gross investment income 515 564 1,087 1,103 Investment expense (15 ) (14 ) (29 ) (27 ) Net investment income $ 500 $ 550 $ 1,058 $ 1,076 Net realized investment gains (losses) are presented in the following table. Periods ended June 30 Three Months Six Months (In millions) 2015 2014 2015 2014 Net realized investment gains (losses): Fixed maturity securities: Gross realized gains $ 36 $ 20 $ 69 $ 73 Gross realized losses (48 ) (39 ) (69 ) (54 ) Net realized investment gains (losses) on fixed maturity securities (12 ) (19 ) — 19 Equity securities: Gross realized gains — — 1 5 Gross realized losses (1 ) — (2 ) — Net realized investment gains (losses) on equity securities (1 ) — (1 ) 5 Derivative financial instruments 11 1 10 1 Short term investments and other 2 4 1 7 Net realized investment gains (losses) $ — $ (14 ) $ 10 $ 32 The components of Net other-than-temporary impairment (OTTI) losses recognized in earnings by asset type are presented in the following table. Periods ended June 30 Three Months Six Months (In millions) 2015 2014 2015 2014 Fixed maturity securities available-for-sale: Corporate and other bonds $ 11 $ 2 $ 16 $ 3 States, municipalities and political subdivisions 13 — 18 — Asset-backed: Residential mortgage-backed 5 1 6 2 Other asset-backed 1 1 1 1 Total asset-backed 6 2 7 3 Total fixed maturity securities available-for-sale 30 4 41 6 Equity securities available-for-sale -- Common stock — 1 1 1 Short term investments 1 — 1 — Net OTTI losses recognized in earnings $ 31 $ 5 $ 43 $ 7 The following tables present a summary of fixed maturity and equity securities. June 30, 2015 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Unrealized OTTI Losses (Gains) (In millions) Fixed maturity securities available-for-sale: Corporate and other bonds $ 16,863 $ 1,337 $ 88 $ 18,112 $ — States, municipalities and political subdivisions 11,707 1,186 40 12,853 — Asset-backed: Residential mortgage-backed 4,940 175 15 5,100 (46 ) Commercial mortgage-backed 2,186 77 12 2,251 (2 ) Other asset-backed 1,044 12 1 1,055 — Total asset-backed 8,170 264 28 8,406 (48 ) U.S. Treasury and obligations of government-sponsored enterprises 24 5 — 29 — Foreign government 387 13 1 399 — Redeemable preferred stock 33 2 — 35 — Total fixed maturity securities available-for-sale 37,184 2,807 157 39,834 $ (48 ) Total fixed maturity securities trading 15 15 Equity securities available-for-sale: Common stock 54 8 2 60 Preferred stock 154 4 2 156 Total equity securities available-for-sale 208 12 4 216 Total $ 37,407 $ 2,819 $ 161 $ 40,065 December 31, 2014 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Unrealized OTTI Losses (Gains) (In millions) 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 The net unrealized gains on investments included in the tables above are recorded as a component of Accumulated other comprehensive income (AOCI). When presented in AOCI, these amounts are net of tax and any required Shadow Adjustments. As of June 30, 2015 and December 31, 2014 , the net unrealized gains on investments included in AOCI were net of after-tax Shadow Adjustments of $1,022 million and $1,288 million . To the extent that unrealized gains on fixed income securities supporting certain products within the Life & Group Non-Core segment would result in a premium deficiency if 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 (loss) (Shadow Adjustments). The following tables present the estimated fair value and gross unrealized losses of 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. Less than 12 Months 12 Months or Longer Total June 30, 2015 Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses (In millions) Fixed maturity securities available-for-sale: Corporate and other bonds $ 3,201 $ 73 $ 152 $ 15 $ 3,353 $ 88 States, municipalities and political subdivisions 1,523 34 143 6 1,666 40 Asset-backed: Residential mortgage-backed 451 6 167 9 618 15 Commercial mortgage-backed 557 9 61 3 618 12 Other asset-backed 135 1 18 — 153 1 Total asset-backed 1,143 16 246 12 1,389 28 U.S. Treasury and obligations of government-sponsored enterprises 3 — — — 3 — Foreign government 20 1 1 — 21 1 Total fixed maturity securities available-for-sale 5,890 124 542 33 6,432 157 Equity securities available-for-sale: Common Stock 21 2 — — 21 2 Preferred stock 17 2 — — 17 2 Total $ 5,928 $ 128 $ 542 $ 33 $ 6,470 $ 161 Less than 12 Months 12 Months or Longer Total December 31, 2014 Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses (In millions) 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 Based on current facts and circumstances, the Company believes the unrealized losses presented in the June 30, 2015 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 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 as of June 30, 2015 . The following table presents the activity related to the pretax credit loss component reflected in Retained earnings on fixed maturity securities still held as of June 30, 2015 and 2014 for which a portion of an OTTI loss was recognized in Other comprehensive income. Periods ended June 30 Three Months Six Months (In millions) 2015 2014 2015 2014 Beginning balance of credit losses on fixed maturity securities $ 61 $ 69 $ 62 $ 74 Reductions for securities sold during the period (2 ) (3 ) (3 ) (5 ) Reductions for securities the Company intends to sell or more likely than not will be required to sell — — — (3 ) Ending balance of credit losses on fixed maturity securities $ 59 $ 66 $ 59 $ 66 Contractual Maturity The following table presents available-for-sale fixed maturity securities by contractual maturity. June 30, 2015 December 31, 2014 (In millions) Cost or Amortized Cost Estimated Fair Value Cost or Amortized Cost Estimated Fair Value Due in one year or less $ 1,539 $ 1,559 $ 2,479 $ 2,511 Due after one year through five years 7,507 7,956 9,054 9,605 Due after five years through ten years 14,099 14,549 12,055 12,584 Due after ten years 14,039 15,770 13,728 16,049 Total $ 37,184 $ 39,834 $ 37,316 $ 40,749 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. Derivative Financial Instruments The following tables present the aggregate contractual or notional amounts and estimated fair values related to derivative financial instruments. June 30, 2015 Contractual/ Notional Amount Estimated Fair Value (In millions) Asset Liability Without hedge designation Equity warrants $ 5 $ — $ — Embedded derivative on funds withheld liability 183 — (6 ) Total $ — $ (6 ) December 31, 2014 Contractual/ Notional Amount Estimated Fair Value (In millions) Asset Liability Without hedge designation Currency forwards $ 9 $ — $ — Equity warrants 5 — — Embedded derivative on funds withheld liability 184 — 3 Total $ — $ 3 Derivative financial instruments are presented gross in Other invested assets and Other liabilities on the Condensed Consolidated Balance Sheets. There would be no significant difference in the balance included in such accounts if the estimated fair values were presented net as of June 30, 2015 and December 31, 2014 . The embedded derivative on funds withheld liability is accounted for separately and reported with the funds withheld liability in Other liabilities on the Condensed Consolidated Balance Sheets. Investment Commitments As of June 30, 2015 , the Company had committed approximately $295 million to future capital calls from various third-party limited partnership investments in exchange for an ownership interest in the related partnerships. As of June 30, 2015 , the Company had a mortgage loan commitment of $6 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 June 30, 2015 , the Company had commitments to purchase or fund additional amounts of $134 million and sell $79 million under the terms of such securities. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2015 | |
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 methodology 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 a methodology 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 period-over-period changes in price 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 presented in the following tables. June 30, 2015 Total Assets/ Liabilities at Fair Value (In millions) Level 1 Level 2 Level 3 Assets Fixed maturity securities: Corporate and other bonds $ 28 $ 17,958 $ 141 $ 18,127 States, municipalities and political subdivisions — 12,768 85 12,853 Asset-backed: Residential mortgage-backed — 4,893 207 5,100 Commercial mortgage-backed — 2,164 87 2,251 Other asset-backed — 565 490 1,055 Total asset-backed — 7,622 784 8,406 U.S. Treasury and obligations of government-sponsored enterprises 28 1 — 29 Foreign government 32 367 — 399 Redeemable preferred stock 24 11 — 35 Total fixed maturity securities 112 38,727 1,010 39,849 Equity securities 139 61 16 216 Other invested assets — 43 — 43 Short term investments 692 900 — 1,592 Life settlement contracts, included in Other assets — — 75 75 Total assets $ 943 $ 39,731 $ 1,101 $ 41,775 Liabilities Other liabilities $ — $ (6 ) $ — $ (6 ) Total liabilities $ — $ (6 ) $ — $ (6 ) December 31, 2014 Total Assets/Liabilities at Fair Value (In millions) Level 1 Level 2 Level 3 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 The following tables present a reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3). Level 3 (In millions) Balance as of April 1, 2015 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 Level 3 Transfers out of Level 3 Balance as of June 30, 2015 Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2015 recognized in Net income (loss) Fixed maturity securities: Corporate and other bonds $ 186 $ (2 ) $ (1 ) $ — $ — $ (7 ) $ — $ (35 ) $ 141 $ (3 ) States, municipalities and political subdivisions 86 — — — — (1 ) — — 85 — Asset-backed: Residential mortgage-backed 232 1 (2 ) — — (11 ) — (13 ) 207 — Commercial mortgage-backed 64 1 (1 ) 9 — (1 ) 17 (2 ) 87 — Other asset-backed 553 2 1 47 (90 ) (17 ) — (6 ) 490 — Total asset-backed 849 4 (2 ) 56 (90 ) (29 ) 17 (21 ) 784 — Total fixed maturity securities 1,121 2 (3 ) 56 (90 ) (37 ) 17 (56 ) 1,010 (3 ) Equity securities 13 — 3 — — — — — 16 — Life settlement contracts 79 4 — — — (8 ) — — 75 (2 ) Total $ 1,213 $ 6 $ — $ 56 $ (90 ) $ (45 ) $ 17 $ (56 ) $ 1,101 $ (5 ) Level 3 (In millions) Balance as of April 1, 2014 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 Level 3 Transfers out of Level 3 Balance as of June 30, 2014 Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2014 recognized in Net income (loss) Fixed maturity securities: Corporate and other bonds $ 189 $ 1 $ — $ 21 $ (6 ) $ (5 ) $ 5 $ (11 ) $ 194 $ — States, municipalities and political subdivisions 86 1 1 1 (10 ) — — — 79 — Asset-backed: Residential mortgage-backed 359 (24 ) 47 22 (174 ) (19 ) — (26 ) 185 — Commercial mortgage-backed 126 1 1 — (60 ) (1 ) 12 (20 ) 59 — Other asset-backed 439 — 4 229 (28 ) (18 ) — — 626 (1 ) Total asset-backed 924 (23 ) 52 251 (262 ) (38 ) 12 (46 ) 870 (1 ) Total fixed maturity securities 1,199 (21 ) 53 273 (278 ) (43 ) 17 (57 ) 1,143 (1 ) Equity securities 2 — — — — — — — 2 — Life settlement contracts 87 12 — — — (13 ) — — 86 1 Total $ 1,288 $ (9 ) $ 53 $ 273 $ (278 ) $ (56 ) $ 17 $ (57 ) $ 1,231 $ — Level 3 (In millions) Balance as of January 1, 2015 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 Level 3 Transfers out of Level 3 Balance as of June 30, 2015 Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2015 recognized in Net income (loss) Fixed maturity securities: Corporate and other bonds $ 162 $ (1 ) $ (1 ) $ 12 $ (12 ) $ (21 ) $ 37 $ (35 ) $ 141 $ (3 ) States, municipalities and political subdivisions 94 1 — — — (10 ) — — 85 — Asset-backed: Residential mortgage-backed 189 2 (2 ) 72 — (21 ) — (33 ) 207 — Commercial mortgage-backed 83 2 — 15 — (2 ) 17 (28 ) 87 — Other asset-backed 655 3 10 82 (234 ) (20 ) — (6 ) 490 — Total asset-backed 927 7 8 169 (234 ) (43 ) 17 (67 ) 784 — Total fixed maturity securities 1,183 7 7 181 (246 ) (74 ) 54 (102 ) 1,010 (3 ) Equity securities 16 — — — — — — — 16 — Life settlement contracts 82 17 — — — (24 ) — — 75 (1 ) Total $ 1,281 $ 24 $ 7 $ 181 $ (246 ) $ (98 ) $ 54 $ (102 ) $ 1,101 $ (4 ) Level 3 (In millions) Balance as of January 1, 2014 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 Level 3 Transfers out of Level 3 Balance as of June 30, 2014 Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2014 recognized in Net income (loss) Fixed maturity securities: Corporate and other bonds $ 204 $ 2 $ 1 $ 26 $ (10 ) $ (10 ) $ 8 $ (27 ) $ 194 $ — States, municipalities and political subdivisions 71 1 2 1 (10 ) — 14 — 79 — Asset-backed: Residential mortgage-backed 331 (23 ) 62 47 (174 ) (40 ) 21 (39 ) 185 — Commercial mortgage-backed 151 2 — — (60 ) (2 ) 12 (44 ) 59 — Other asset-backed 446 1 4 377 (111 ) (90 ) — (1 ) 626 (1 ) Total asset-backed 928 (20 ) 66 424 (345 ) (132 ) 33 (84 ) 870 (1 ) Total fixed maturity securities 1,203 (17 ) 69 451 (365 ) (142 ) 55 (111 ) 1,143 (1 ) Equity securities 11 3 (4 ) — (8 ) — — — 2 — Life settlement contracts 88 22 — — — (24 ) — — 86 2 Separate account business 1 — — — — — — (1 ) — — Total $ 1,303 $ 8 $ 65 $ 451 $ (373 ) $ (166 ) $ 55 $ (112 ) $ 1,231 $ 1 Net realized and unrealized gains and losses, including those shown above, are reported in Net income (loss) as follows: Major Category of Assets and Liabilities Condensed 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 pages 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 three and six months ended June 30, 2015 there were no transfers between Level 1 and Level 2. During the three months ended June 30, 2014 there were $1 million of transfers from Level 2 to Level 1 and no transfers from Level 1 to Level 2. During the six months ended June 30, 2014 , there were $24 million of transfers from Level 2 to Level 1 and $1 million from Level 1 to Level 2. 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 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. All classes of Level 2 fixed maturity securities are valued using a methodology based on information generated by market transactions involving identical or comparable assets, a discounted cash flow methodology, or a combination of both when necessary. Common inputs for all classes of fixed maturity securities include prices from recently executed transactions of similar securities, marketplace 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. Fixed maturity 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 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 liability, which are fixed maturity securities valued with observable inputs. Currency forwards are valued using observable market forward rates. 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 Condensed 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. Significant Unobservable Inputs The following tables present 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. June 30, 2015 Estimated Fair Value (In millions) Valuation Technique(s) Unobservable Input(s) Range (Weighted Average) Fixed maturity securities $ 97 Discounted cash flow Credit spread 2% - 13% (3%) Life settlement contracts 75 Discounted cash flow Discount rate risk premium 9% Mortality assumption 55% - 1676% (165%) December 31, 2014 Estimated Fair Value Valuation Technique(s) Unobservable Input(s) Range (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%) 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 assets and liabilities which are not measured at fair value on the Condensed Consolidated Balance Sheets are presented in the following tables. June 30, 2015 Carrying Amount Estimated Fair Value (In millions) Level 1 Level 2 Level 3 Total Assets Mortgage loans $ 622 $ — $ — $ 640 $ 640 Liabilities Long term debt $ 2,560 $ — $ 2,843 $ — $ 2,843 December 31, 2014 Carrying Estimated Fair Value (In millions) Level 1 Level 2 Level 3 Total Assets Notes receivable for the issuance of common stock $ 1 $ — $ — $ 1 $ 1 Mortgage loans 588 — — 608 608 Liabilities Long term debt $ 2,559 $ — $ 2,883 $ — $ 2,883 The following methods and assumptions were used to estimate the fair value of these financial assets and liabilities. 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. 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 Condensed 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. |
Claim and Claim Adjustment Expe
Claim and Claim Adjustment Expense Reserves | 6 Months Ended |
Jun. 30, 2015 | |
Liability for Claims and Claims Adjustment Expense [Abstract] | |
Claim and Claim Adjustment Expense Reserves | Note E . 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 incurred but not reported (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 can contribute 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 $60 million and $89 million for the three and six months ended June 30, 2015 . Catastrophe losses in 2015 related primarily to U.S. weather-related events. The Company reported catastrophe losses, net of reinsurance, of $56 million and $130 million for the three and six months ended June 30, 2014 . Net Prior Year Development The following tables and discussion present net prior year development recorded for Specialty, Commercial, International and Corporate & Other Non-Core segments. Three months ended June 30, 2015 (In millions) Specialty Commercial International Corporate & Other Non-Core Total Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development $ (13 ) $ 16 $ (8 ) $ — $ (5 ) Pretax (favorable) unfavorable premium development (2 ) (11 ) (2 ) — (15 ) Total pretax (favorable) unfavorable net prior year development $ (15 ) $ 5 $ (10 ) $ — $ (20 ) Three months ended June 30, 2014 (In millions) Specialty Commercial International Corporate & Other Non-Core Total Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development $ (41 ) $ 90 $ (25 ) $ — $ 24 Pretax (favorable) unfavorable premium development (2 ) (6 ) 6 — (2 ) Total pretax (favorable) unfavorable net prior year development $ (43 ) $ 84 $ (19 ) $ — $ 22 Six months ended June 30, 2015 (In millions) Specialty Commercial International Corporate & Other Non-Core Total Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development $ (11 ) $ 11 $ (12 ) $ — $ (12 ) Pretax (favorable) unfavorable premium development (8 ) (12 ) 14 — (6 ) Total pretax (favorable) unfavorable net prior year development $ (19 ) $ (1 ) $ 2 $ — $ (18 ) Six months ended June 30, 2014 (In millions) Specialty Commercial International Corporate & Other Non-Core Total Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development $ (44 ) $ 108 $ (15 ) $ — $ 49 Pretax (favorable) unfavorable premium development (8 ) (24 ) (1 ) — (33 ) Total pretax (favorable) unfavorable net prior year development $ (52 ) $ 84 $ (16 ) $ — $ 16 Specialty The following table presents further detail of the net prior year claim and allocated claim adjustment expense reserve development (development) recorded for the Specialty segment. Periods ended June 30 Three Months Six Months (In millions) 2015 2014 2015 2014 Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development: Medical Professional Liability $ (6 ) $ 1 $ 8 $ 1 Other Professional Liability and Management Liability (1 ) (44 ) (4 ) (50 ) Surety — — 1 1 Warranty 1 — 1 — Other (7 ) 2 (17 ) 4 Total pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development $ (13 ) $ (41 ) $ (11 ) $ (44 ) Three Months 2015 Overall, favorable development in medical professional liability was primarily due to lower than expected severity for individual healthcare professionals and allied facilities in accident years 2009 through 2012. Unfavorable development was recorded related to increased claim frequency in the aging services business in accident years 2009 and 2010. Favorable development of $38 million was recorded in other professional liability and management liability related to lower than expected severity for professional services primarily in accident years 2010 and prior. Unfavorable development of $37 million was recorded primarily related to increased claim frequency on public company management liability in accident years 2012 through 2014. Favorable development for other coverages was primarily due to better than expected claim frequency in property coverages provided to Specialty customers in accident year 2014. 2014 Favorable development for other professional liability and management liability was primarily related to favorable outcomes on individual large claims in accident years 2009 and prior, which contributed to a lower estimate of ultimate severity. Additionally, there was lower than expected severity in accident years 2008 through 2011. Six Months 2015 Overall, unfavorable development for medical professional liability was primarily related to increased claim frequency in the aging services business for accident years 2009 through 2014, partially offset by lower than expected severity in accident years 2010 and prior. Additional favorable development was due to lower than expected severity for individual healthcare professionals and allied facilities in accident years 2009 through 2012. Favorable development of $41 million was recorded in other professional liability and management liability primarily related to lower than expected severity in accident years 2010 and prior for professional services. Unfavorable development of $37 million was recorded primarily related to increased claim frequency on public company management liability in accident years 2012 through 2014. Favorable development for other coverages was primarily due to better than expected claim frequency in property coverages provided to Specialty customers in accident year 2014. 2014 Favorable development for other professional liability and management liability was primarily related to favorable outcomes on individual large claims in accident years 2009 and prior, which contributed to a lower estimate of ultimate severity. Additionally, there was lower than expected severity in accident years 2008 through 2011. Commercial The following table presents further detail of the development recorded for the Commercial segment. The majority of the 2014 unfavorable development relates to business classes which the Company has exited, but also includes Small Business where the Company has taken underwriting actions in an effort to improve profitability. Periods ended June 30 Three Months Six Months (In millions) 2015 2014 2015 2014 Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development: Commercial Auto $ 7 $ 19 $ 7 $ 39 General Liability 1 32 5 32 Workers' Compensation 24 39 23 50 Property and Other (16 ) — (24 ) (13 ) Total pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development $ 16 $ 90 $ 11 $ 108 Three Months 2015 In the aggregate, the unfavorable loss development of $16 million was driven by an extra contractual obligation loss and losses associated with premium development. The reserve development discussed below was largely offsetting. Unfavorable development for workers’ compensation was primarily due to higher than expected severity related to Defense Base Act contractors in accident years 2008 through 2013. Favorable development for property and other was primarily due to better than expected loss emergence from 2012 catastrophe events and better than expected claim frequency of large claims in accident year 2014. 2014 Unfavorable development for commercial auto was primarily related to increased claim frequency of large losses in accident years 2010 through 2013. Unfavorable development for general liability was primarily related to higher than expected severity in accident years 2009 through 2011. In addition, there was higher than expected severity in accident year 2013 related to Small Business. Unfavorable development for workers’ compensation was primarily due to higher than expected severity related to Defense Base Act contractors in accident years 2012 and 2013. Six Months 2015 In addition to the favorable property development noted in the three month discussion, there was additional favorable development for property related to better than expected loss emergence from 2014 catastrophe events. 2014 Unfavorable development for commercial auto was primarily related to increased claim frequency of large losses in accident years 2010 through 2013. Additionally, unfavorable development was recorded for increased claim frequency in accident years 2012 and 2013 and higher than expected severity in accident years 2010 and 2011. Unfavorable development for general liability was primarily related to higher than expected severity in accident years 2009 through 2011. In addition, there was higher than expected severity in accident year 2013 related to Small Business. Unfavorable development for workers’ compensation was primarily due to higher than expected severity related to Defense Base Act contractors in accident years 2012 and 2013 and the recognition of losses related to favorable premium development in accident year 2013. Overall, favorable development for property and other coverages in accident years 2011 and prior primarily related to fewer claims than expected and favorable individual claim settlements. Additionally, there was favorable development due to better than expected loss emergence in catastrophe losses in accident year 2013. Unfavorable development was recorded in accident year 2012 primarily related to higher than expected loss emergence in catastrophe losses. International The following table presents further detail of the development recorded for the International segment. Periods ended June 30 Three Months Six Months (In millions) 2015 2014 2015 2014 Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development: Medical Professional Liability $ — $ — $ — $ 1 Other Professional Liability (5 ) (14 ) (5 ) (15 ) Liability (2 ) (4 ) (7 ) (6 ) Property & Marine (8 ) (7 ) (14 ) 1 Other 7 — 14 (6 ) Commutations — — — 10 Total pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development $ (8 ) $ (25 ) $ (12 ) $ (15 ) Three Months 2015 Favorable development in property and marine was due to better than expected emergence in accident years 2012 through 2014. Unfavorable development in other is due to large losses in financial institutions and political risk primarily in accident year 2014. 2014 Favorable development for other professional liability was primarily related to lower than expected severity in accident years 2011 and prior. Six Months 2015 Favorable development in property and marine was due to better than expected emergence in accident years 2012 through 2014. Unfavorable development in other is due to large losses in financial institutions and political risk primarily in accident year 2014. 2014 Favorable development for other professional liability was primarily related to lower than expected severity in accident years 2011 and prior. 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. Asbestos and Environmental Pollution (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). At the transaction effective date, 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 . Through December 31, 2013, the Company recorded $0.9 billion of additional amounts ceded under LPT. As a result, the cumulative amounts ceded under the Loss Portfolio Transfer exceeded the $2.2 billion consideration paid, resulting in a deferred retroactive reinsurance gain. This deferred gain 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 a period in which the estimate of ceded losses is changed, the required change to the deferred gain is cumulatively recognized in earnings as if the revised estimate was available at the inception of the LPT. The following table displays the impact of the Loss Portfolio Transfer on the Condensed Consolidated Statements of Operations. Periods ended June 30 Three Months Six Months (In millions) 2015 2014 2015 2014 Net A&EP adverse development before consideration of LPT $ 150 $ — $ 150 $ — Provision for uncollectible third-party reinsurance on A&EP — — — — Additional amounts ceded under LPT 150 — 150 — Retroactive reinsurance benefit recognized (66 ) (1 ) (71 ) (5 ) Pretax impact of unrecognized deferred retroactive reinsurance benefit $ 84 $ (1 ) $ 79 $ (5 ) The fourth quarter of 2014 A&EP reserve review was not completed in 2014 because additional information and analysis on inuring third-party reinsurance recoveries were needed to finalize the review. The review was finalized in the second quarter of 2015 . Unfavorable development was due to a decrease in anticipated future reinsurance recoveries related to asbestos claims and higher than expected severity on pollution claims. The effect of the unrecognized deferred retroactive reinsurance benefit is recorded in Insurance claims and policyholders' benefits in the Condensed Consolidated Statement of Operations. As of June 30, 2015 and December 31, 2014, the cumulative amounts ceded under the LPT were $2.6 billion and $2.5 billion . The unrecognized deferred retroactive reinsurance benefit was $255 million and $176 million as of June 30, 2015 and December 31, 2014 . NICO established a collateral trust account as security for its obligations to the Company. The fair value of the collateral trust account was $3.1 billion and $3.4 billion as of June 30, 2015 and December 31, 2014 . 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 Contingen
Legal Proceedings and Contingent Liabilities | 6 Months Ended |
Jun. 30, 2015 | |
Legal Proceedings and Contingent Liabilities [Abstract] | |
Legal Proceedings and Contingent Liabilities | Note F . 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 Condensed Consolidated Financial Statements. |
Benefit Plans
Benefit Plans | 6 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Benefit Plans | Note G . Benefit Plans The components of net periodic cost (benefit) are presented in the following table. Periods ended June 30 Three Months Six Months (In millions) 2015 2014 2015 2014 Pension cost (benefit) Service cost $ 2 $ 1 $ 4 $ 4 Interest cost on projected benefit obligation 28 33 56 66 Expected return on plan assets (44 ) (48 ) (87 ) (96 ) Amortization of net actuarial loss 10 7 19 13 Net periodic pension cost (benefit) $ (4 ) $ (7 ) $ (8 ) $ (13 ) Postretirement cost (benefit) Interest cost on projected benefit obligation $ — $ 1 $ — $ 1 Amortization of prior service credit (1 ) (5 ) (1 ) (9 ) Amortization of net actuarial loss 1 — 1 — Curtailment gain — (86 ) — (86 ) Net periodic postretirement cost (benefit) $ — $ (90 ) $ — $ (94 ) In the second quarter of 2015 , the Company eliminated future benefit accruals associated with the CNA Retirement Plan (Plan) effective June 30, 2015 . Employees who were continuing to accrue under this Plan up until that date are entitled to an accrued benefit payable based on their eligible compensation and accrued service through June 30, 2015 , in accordance with the terms of the Plan. Starting with the first pay period after July 1, 2015, affected employees began receiving enhanced employer contributions in the CNA Savings and Capital Accumulation Plan similar to employees who elected to cease accruals effective December 31, 1999. Employees who elected to cease accruals effective December 31, 1999 are not affected by this curtailment. This curtailment resulted in a $55 million decrease in the plan benefit obligation liability and a reduction of the unrecognized actuarial losses included in AOCI. In connection with the curtailment, the Company remeasured the plan benefit obligation which resulted in an increase in the discount rate used to determine the benefit obligation from 3.85% to 4.00% . 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 that resulted in an $86 million curtailment gain which was included 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% . |
Commitments, Contingencies, and
Commitments, Contingencies, and Guarantees | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies, and Guarantees | Note H . Commitments, Contingencies and Guarantees 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, as of June 30, 2015 , the maximum potential future lease payments and other related costs that the Company could be required to pay under this guarantee, in excess of amounts already recorded, were approximately $37 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 June 30, 2015 and December 31, 2014 , the Company had recorded liabilities of approximately $5 million related to guarantee and indemnification agreements. 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 in effect for sales of business entities, assets and third-party loans may include provisions that survive indefinitely. As of June 30, 2015 , the aggregate amount related to quantifiable guarantees was $375 million and the aggregate amount related to indemnification agreements was $260 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 June 30, 2015 , 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 $2.0 billion as of June 30, 2015 . 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. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) by Component | 6 Months Ended |
Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) by Component | Note I . Accumulated Other Comprehensive Income (Loss) by Component The following tables present the changes in Accumulated other comprehensive income (loss) by component. (In millions) 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 as of April 1, 2015 $ 35 $ 1,054 $ (627 ) $ (41 ) $ 421 Other comprehensive income (loss) before reclassifications (4 ) (372 ) 36 49 (291 ) Amounts reclassified from Accumulated other comprehensive income (loss) after tax (expense) benefit of $-, $5, $4, $- and $9 — (7 ) (6 ) — (13 ) Other comprehensive income (loss) after tax (expense) benefit of $2, $181, $(23), $- and $160 (4 ) (365 ) 42 49 (278 ) Balance as of June 30, 2015 $ 31 $ 689 $ (585 ) $ 8 $ 143 (In millions) 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 as of April 1, 2014 $ 33 $ 912 $ 30 $ (425 ) $ 142 $ 692 Other comprehensive income (loss) before reclassifications 2 257 7 — 42 308 Amounts reclassified from Accumulated other comprehensive income (loss) after tax (expense) benefit of $-, $6, $-, $(28), $- and $(22) — (13 ) — 51 — 38 Other comprehensive income (loss) after tax (expense) benefit of $(1), $(146), $(5), $28, $- and $(124) 2 270 7 (51 ) 42 270 Balance as of June 30, 2014 $ 35 $ 1,182 $ 37 $ (476 ) $ 184 $ 962 (In millions) 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 as of January 1, 2015 $ 36 $ 942 $ (633 ) $ 55 $ 400 Other comprehensive income (loss) before reclassifications (5 ) (251 ) 36 (47 ) (267 ) Amounts reclassified from Accumulated other comprehensive income (loss) after tax (expense) benefit of $-, $5, $7, $- and $12 — 2 (12 ) — (10 ) Other comprehensive income (loss) after tax (expense) benefit of $2, $119, $(26), $- and $95 (5 ) (253 ) 48 (47 ) (257 ) Balance as of June 30, 2015 $ 31 $ 689 $ (585 ) $ 8 $ 143 (In millions) 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 as of January 1, 2014 $ 26 $ 692 $ — $ (426 ) $ 150 $ 442 Transfer to net assets held for sale (5 ) (17 ) 22 — — — Other comprehensive income (loss) before reclassifications 14 521 15 — 34 584 Amounts reclassified from Accumulated other comprehensive income (loss) after tax (expense) benefit of $-, $(8), $-, $(27), $- and $(35) — 14 — 50 — 64 Other comprehensive income (loss) after tax (expense) benefit of $(7), $(273), $(10), $27, $- and $(263) 14 507 15 (50 ) 34 520 Balance as of June 30, 2014 $ 35 $ 1,182 $ 37 $ (476 ) $ 184 $ 962 Amounts reclassified from Accumulated other comprehensive income (loss) shown above are reported in Net income (loss) as follows: Component of AOCI Condensed 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 | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Business Segments | Note J . Business Segments The Company's core property and casualty commercial insurance operations are aggregated and 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. The accounting policies of the segments are the same as those described in Note A to the Consolidated Financial Statements within CNAF's Annual Report on Form 10-K for the year ended December 31, 2014 . 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. 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. 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 (loss), 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 (losses) because net realized investment gains (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 continuing operations and selected balance sheet items by segment are presented in the following tables. Three months ended June 30, 2015 Specialty Commercial International Life & Group Non-Core Corporate & Other Non-Core (In millions) Eliminations Total Operating revenues Net earned premiums $ 689 $ 703 $ 207 $ 137 $ — $ (1 ) $ 1,735 Net investment income 134 169 13 179 5 — 500 Other revenues 81 9 (1 ) — 3 — 92 Total operating revenues 904 881 219 316 8 (1 ) 2,327 Claims, Benefits and Expenses Net incurred claims and benefits 416 507 114 344 85 — 1,466 Policyholders’ dividends 1 2 — — — — 3 Amortization of deferred acquisition costs 146 117 45 6 — — 314 Other insurance related expenses 66 130 31 34 (1 ) (1 ) 259 Other expenses 69 5 (5 ) 5 47 — 121 Total claims, benefits and expenses 698 761 185 389 131 (1 ) 2,163 Operating income (loss) before income tax 206 120 34 (73 ) (123 ) — 164 Income tax (expense) benefit on operating income (loss) (69 ) (42 ) (12 ) 49 42 — (32 ) Net operating income (loss) 137 78 22 (24 ) (81 ) — 132 Net realized investment gains (losses) — 2 1 (5 ) 2 — — Income tax (expense) benefit on net realized investment gains (losses) — 2 (1 ) 6 (1 ) — 6 Net realized investment gains (losses), after tax — 4 — 1 1 — 6 Net income (loss) from continuing operations $ 137 $ 82 $ 22 $ (23 ) $ (80 ) $ — $ 138 Three months ended June 30, 2014 Specialty Commercial International Life & Group Non-Core Corporate & Other Non-Core (In millions) Eliminations Total Operating revenues Net earned premiums $ 709 $ 732 $ 231 $ 139 $ — $ — $ 1,811 Net investment income 153 201 16 173 7 — 550 Other revenues 74 8 — 8 5 (2 ) 93 Total operating revenues 936 941 247 320 12 (2 ) 2,454 Claims, Benefits and Expenses Net incurred claims and benefits 404 610 118 304 1 — 1,437 Policyholders’ dividends 1 3 — — — — 4 Amortization of deferred acquisition costs 148 126 54 7 — — 335 Other insurance related expenses 67 125 36 31 — — 259 Other expenses 65 7 5 (3 ) (31 ) (2 ) 41 Total claims, benefits and expenses 685 871 213 339 (30 ) (2 ) 2,076 Operating income (loss) before income tax 251 70 34 (19 ) 42 — 378 Income tax (expense) benefit on operating income (loss) (84 ) (21 ) (14 ) 28 (15 ) — (106 ) Net operating income (loss) 167 49 20 9 27 — 272 Net realized investment gains (losses) (5 ) (5 ) (3 ) (4 ) 3 — (14 ) Income tax (expense) benefit on net realized investment gains (losses) 1 (2 ) 4 1 (1 ) — 3 Net realized investment gains (losses), after tax (4 ) (7 ) 1 (3 ) 2 — (11 ) Net income (loss) from continuing operations $ 163 $ 42 $ 21 $ 6 $ 29 $ — $ 261 Six months ended June 30, 2015 Specialty Commercial International Life & Group Non-Core Corporate & Other Non-Core (In millions) Eliminations Total Operating revenues Net earned premiums $ 1,369 $ 1,381 $ 398 $ 275 $ — $ (1 ) $ 3,422 Net investment income 289 373 27 358 11 — 1,058 Other revenues 159 18 (1 ) 9 5 (1 ) 189 Total operating revenues 1,817 1,772 424 642 16 (2 ) 4,669 Claims, Benefits and Expenses Net incurred claims and benefits 845 961 230 684 81 — 2,801 Policyholders’ dividends 2 5 — — — — 7 Amortization of deferred acquisition costs 290 234 80 13 — — 617 Other insurance related expenses 135 257 68 69 (1 ) (1 ) 527 Other expenses 136 13 — 9 93 (1 ) 250 Total claims, benefits and expenses 1,408 1,470 378 775 173 (2 ) 4,202 Operating income (loss) before income tax 409 302 46 (133 ) (157 ) — 467 Income tax (expense) benefit on operating income (loss) (137 ) (104 ) (15 ) 92 54 — (110 ) Net operating income (loss) 272 198 31 (41 ) (103 ) — 357 Net realized investment gains (losses) 4 6 2 (4 ) 2 — 10 Income tax (expense) benefit on net realized investment gains (losses) (1 ) (1 ) (1 ) 8 (1 ) — 4 Net realized investment gains (losses), after tax 3 5 1 4 1 — 14 Net income (loss) from continuing operations $ 275 $ 203 $ 32 $ (37 ) $ (102 ) $ — $ 371 June 30, 2015 (In millions) Reinsurance receivables $ 697 $ 660 $ 192 $ 534 $ 2,619 $ — $ 4,702 Insurance receivables 862 1,068 302 10 3 — 2,245 Deferred acquisition costs 306 224 91 — — — 621 Goodwill 117 — 36 — — — 153 Insurance reserves Claim and claim adjustment expenses 6,365 9,391 1,401 3,248 2,788 — 23,193 Unearned premiums 1,794 1,384 506 132 — (1 ) 3,815 Future policy benefits — — — 9,360 — — 9,360 Six months ended June 30, 2014 Specialty Commercial International Life & Group Non-Core Corporate & Other Non-Core (In millions) Eliminations Total Operating revenues Net earned premiums $ 1,401 $ 1,467 $ 472 $ 278 $ — $ (1 ) $ 3,617 Net investment income 297 392 31 344 12 — 1,076 Other revenues 142 18 — 13 7 (2 ) 178 Total operating revenues 1,840 1,877 503 635 19 (3 ) 4,871 Claims, Benefits and Expenses Net incurred claims and benefits 846 1,178 248 610 (2 ) — 2,880 Policyholders’ dividends 2 5 — — — — 7 Amortization of deferred acquisition costs 291 249 109 15 — — 664 Other insurance related expenses 132 251 76 63 — (1 ) 521 Other expenses 126 15 12 (2 ) 20 (2 ) 169 Total claims, benefits and expenses 1,397 1,698 445 686 18 (3 ) 4,241 Operating income (loss) before income tax 443 179 58 (51 ) 1 — 630 Income tax (expense) benefit on operating income (loss) (147 ) (56 ) (22 ) 58 (1 ) — (168 ) Net operating income (loss) 296 123 36 7 — — 462 Net realized investment gains (losses) 6 5 — 12 9 — 32 Income tax (expense) benefit on net realized investment gains (losses) (2 ) (4 ) 1 (5 ) (3 ) — (13 ) Net realized investment gains (losses), after tax 4 1 1 7 6 — 19 Net income (loss) from continuing operations $ 300 $ 124 $ 37 $ 14 $ 6 $ — $ 481 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 The following table presents revenue by line of business for each reportable segment. Revenues are comprised of Operating revenues and Net realized investment gains and losses. Periods ended June 30 Three Months Six Months (In millions) 2015 2014 2015 2014 Specialty Management & Professional Liability $ 674 $ 710 $ 1,371 $ 1,414 Surety 125 125 245 247 Warranty & Alternative Risks 105 96 205 185 Specialty revenues 904 931 1,821 1,846 Commercial Middle Market 412 412 821 815 Small Business 158 181 323 365 Other Commercial Insurance 313 343 634 702 Commercial revenues 883 936 1,778 1,882 International Canada 54 70 109 141 CNA Europe 77 83 154 171 Hardy 89 91 163 191 International revenues 220 244 426 503 Life & Group Non-Core revenues 311 316 638 647 Corporate & Other Non-Core revenues 10 15 18 28 Eliminations (1 ) (2 ) (2 ) (3 ) Total revenues $ 2,327 $ 2,440 $ 4,679 $ 4,903 |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Note K . Discontinued Operations The results of discontinued operations reflected in the Condensed Consolidated Statements of Operations are presented in the following table. Periods ended June 30, 2014 (In millions) Three Months Six Months Revenues Net investment income $ 39 $ 80 Net realized investment gains 1 2 Total revenues 40 82 Claims, Benefits and Expenses Insurance claims and policyholders' benefits 32 63 Other operating expenses 1 2 Total claims, benefits and expenses 33 65 Income before income tax 7 17 Income tax expense (1 ) (4 ) Income from discontinued operations, net of income tax 6 13 Impairment loss on sale, net of income tax benefit of $- and $41 — (214 ) Income (loss) from discontinued operations $ 6 $ (201 ) |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Investments [Abstract] | |
Net investment income | The significant components of Net investment income are presented in the following table. Periods ended June 30 Three Months Six Months (In millions) 2015 2014 2015 2014 Fixed maturity securities $ 452 $ 451 $ 895 $ 903 Short term investments — — 2 1 Limited partnership investments 48 97 162 170 Equity securities 3 3 6 5 Mortgage loans 9 9 17 15 Trading portfolio 3 3 5 6 Other — 1 — 3 Gross investment income 515 564 1,087 1,103 Investment expense (15 ) (14 ) (29 ) (27 ) Net investment income $ 500 $ 550 $ 1,058 $ 1,076 |
Net realized investment gains (losses) | Net realized investment gains (losses) are presented in the following table. Periods ended June 30 Three Months Six Months (In millions) 2015 2014 2015 2014 Net realized investment gains (losses): Fixed maturity securities: Gross realized gains $ 36 $ 20 $ 69 $ 73 Gross realized losses (48 ) (39 ) (69 ) (54 ) Net realized investment gains (losses) on fixed maturity securities (12 ) (19 ) — 19 Equity securities: Gross realized gains — — 1 5 Gross realized losses (1 ) — (2 ) — Net realized investment gains (losses) on equity securities (1 ) — (1 ) 5 Derivative financial instruments 11 1 10 1 Short term investments and other 2 4 1 7 Net realized investment gains (losses) $ — $ (14 ) $ 10 $ 32 |
Components of Net other-than-temporary impairment losses recognized in earnings by asset type | The components of Net other-than-temporary impairment (OTTI) losses recognized in earnings by asset type are presented in the following table. Periods ended June 30 Three Months Six Months (In millions) 2015 2014 2015 2014 Fixed maturity securities available-for-sale: Corporate and other bonds $ 11 $ 2 $ 16 $ 3 States, municipalities and political subdivisions 13 — 18 — Asset-backed: Residential mortgage-backed 5 1 6 2 Other asset-backed 1 1 1 1 Total asset-backed 6 2 7 3 Total fixed maturity securities available-for-sale 30 4 41 6 Equity securities available-for-sale -- Common stock — 1 1 1 Short term investments 1 — 1 — Net OTTI losses recognized in earnings $ 31 $ 5 $ 43 $ 7 |
Summary of fixed maturity and equity securities | The following tables present a summary of fixed maturity and equity securities. June 30, 2015 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Unrealized OTTI Losses (Gains) (In millions) Fixed maturity securities available-for-sale: Corporate and other bonds $ 16,863 $ 1,337 $ 88 $ 18,112 $ — States, municipalities and political subdivisions 11,707 1,186 40 12,853 — Asset-backed: Residential mortgage-backed 4,940 175 15 5,100 (46 ) Commercial mortgage-backed 2,186 77 12 2,251 (2 ) Other asset-backed 1,044 12 1 1,055 — Total asset-backed 8,170 264 28 8,406 (48 ) U.S. Treasury and obligations of government-sponsored enterprises 24 5 — 29 — Foreign government 387 13 1 399 — Redeemable preferred stock 33 2 — 35 — Total fixed maturity securities available-for-sale 37,184 2,807 157 39,834 $ (48 ) Total fixed maturity securities trading 15 15 Equity securities available-for-sale: Common stock 54 8 2 60 Preferred stock 154 4 2 156 Total equity securities available-for-sale 208 12 4 216 Total $ 37,407 $ 2,819 $ 161 $ 40,065 December 31, 2014 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Unrealized OTTI Losses (Gains) (In millions) 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 |
Securities in a gross unrealized loss position | The following tables present the estimated fair value and gross unrealized losses of 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. Less than 12 Months 12 Months or Longer Total June 30, 2015 Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses (In millions) Fixed maturity securities available-for-sale: Corporate and other bonds $ 3,201 $ 73 $ 152 $ 15 $ 3,353 $ 88 States, municipalities and political subdivisions 1,523 34 143 6 1,666 40 Asset-backed: Residential mortgage-backed 451 6 167 9 618 15 Commercial mortgage-backed 557 9 61 3 618 12 Other asset-backed 135 1 18 — 153 1 Total asset-backed 1,143 16 246 12 1,389 28 U.S. Treasury and obligations of government-sponsored enterprises 3 — — — 3 — Foreign government 20 1 1 — 21 1 Total fixed maturity securities available-for-sale 5,890 124 542 33 6,432 157 Equity securities available-for-sale: Common Stock 21 2 — — 21 2 Preferred stock 17 2 — — 17 2 Total $ 5,928 $ 128 $ 542 $ 33 $ 6,470 $ 161 Less than 12 Months 12 Months or Longer Total December 31, 2014 Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses (In millions) 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 |
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 presents the activity related to the pretax credit loss component reflected in Retained earnings on fixed maturity securities still held as of June 30, 2015 and 2014 for which a portion of an OTTI loss was recognized in Other comprehensive income. Periods ended June 30 Three Months Six Months (In millions) 2015 2014 2015 2014 Beginning balance of credit losses on fixed maturity securities $ 61 $ 69 $ 62 $ 74 Reductions for securities sold during the period (2 ) (3 ) (3 ) (5 ) Reductions for securities the Company intends to sell or more likely than not will be required to sell — — — (3 ) Ending balance of credit losses on fixed maturity securities $ 59 $ 66 $ 59 $ 66 |
Contractual maturity | The following table presents available-for-sale fixed maturity securities by contractual maturity. June 30, 2015 December 31, 2014 (In millions) Cost or Amortized Cost Estimated Fair Value Cost or Amortized Cost Estimated Fair Value Due in one year or less $ 1,539 $ 1,559 $ 2,479 $ 2,511 Due after one year through five years 7,507 7,956 9,054 9,605 Due after five years through ten years 14,099 14,549 12,055 12,584 Due after ten years 14,039 15,770 13,728 16,049 Total $ 37,184 $ 39,834 $ 37,316 $ 40,749 |
Summary of aggregate contractual or notional amounts and gross estimated fair values related to derivative financial instruments | The following tables present the aggregate contractual or notional amounts and estimated fair values related to derivative financial instruments. June 30, 2015 Contractual/ Notional Amount Estimated Fair Value (In millions) Asset Liability Without hedge designation Equity warrants $ 5 $ — $ — Embedded derivative on funds withheld liability 183 — (6 ) Total $ — $ (6 ) December 31, 2014 Contractual/ Notional Amount Estimated Fair Value (In millions) Asset Liability Without hedge designation Currency forwards $ 9 $ — $ — Equity warrants 5 — — Embedded derivative on funds withheld liability 184 — 3 Total $ — $ 3 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 presented in the following tables. June 30, 2015 Total Assets/ Liabilities at Fair Value (In millions) Level 1 Level 2 Level 3 Assets Fixed maturity securities: Corporate and other bonds $ 28 $ 17,958 $ 141 $ 18,127 States, municipalities and political subdivisions — 12,768 85 12,853 Asset-backed: Residential mortgage-backed — 4,893 207 5,100 Commercial mortgage-backed — 2,164 87 2,251 Other asset-backed — 565 490 1,055 Total asset-backed — 7,622 784 8,406 U.S. Treasury and obligations of government-sponsored enterprises 28 1 — 29 Foreign government 32 367 — 399 Redeemable preferred stock 24 11 — 35 Total fixed maturity securities 112 38,727 1,010 39,849 Equity securities 139 61 16 216 Other invested assets — 43 — 43 Short term investments 692 900 — 1,592 Life settlement contracts, included in Other assets — — 75 75 Total assets $ 943 $ 39,731 $ 1,101 $ 41,775 Liabilities Other liabilities $ — $ (6 ) $ — $ (6 ) Total liabilities $ — $ (6 ) $ — $ (6 ) December 31, 2014 Total Assets/Liabilities at Fair Value (In millions) Level 1 Level 2 Level 3 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 |
Table of reconciliation for assets and liablities measured at fair value on a recurring basis using significant unobservable inputs | The following tables present a reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3). Level 3 (In millions) Balance as of April 1, 2015 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 Level 3 Transfers out of Level 3 Balance as of June 30, 2015 Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2015 recognized in Net income (loss) Fixed maturity securities: Corporate and other bonds $ 186 $ (2 ) $ (1 ) $ — $ — $ (7 ) $ — $ (35 ) $ 141 $ (3 ) States, municipalities and political subdivisions 86 — — — — (1 ) — — 85 — Asset-backed: Residential mortgage-backed 232 1 (2 ) — — (11 ) — (13 ) 207 — Commercial mortgage-backed 64 1 (1 ) 9 — (1 ) 17 (2 ) 87 — Other asset-backed 553 2 1 47 (90 ) (17 ) — (6 ) 490 — Total asset-backed 849 4 (2 ) 56 (90 ) (29 ) 17 (21 ) 784 — Total fixed maturity securities 1,121 2 (3 ) 56 (90 ) (37 ) 17 (56 ) 1,010 (3 ) Equity securities 13 — 3 — — — — — 16 — Life settlement contracts 79 4 — — — (8 ) — — 75 (2 ) Total $ 1,213 $ 6 $ — $ 56 $ (90 ) $ (45 ) $ 17 $ (56 ) $ 1,101 $ (5 ) Level 3 (In millions) Balance as of April 1, 2014 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 Level 3 Transfers out of Level 3 Balance as of June 30, 2014 Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2014 recognized in Net income (loss) Fixed maturity securities: Corporate and other bonds $ 189 $ 1 $ — $ 21 $ (6 ) $ (5 ) $ 5 $ (11 ) $ 194 $ — States, municipalities and political subdivisions 86 1 1 1 (10 ) — — — 79 — Asset-backed: Residential mortgage-backed 359 (24 ) 47 22 (174 ) (19 ) — (26 ) 185 — Commercial mortgage-backed 126 1 1 — (60 ) (1 ) 12 (20 ) 59 — Other asset-backed 439 — 4 229 (28 ) (18 ) — — 626 (1 ) Total asset-backed 924 (23 ) 52 251 (262 ) (38 ) 12 (46 ) 870 (1 ) Total fixed maturity securities 1,199 (21 ) 53 273 (278 ) (43 ) 17 (57 ) 1,143 (1 ) Equity securities 2 — — — — — — — 2 — Life settlement contracts 87 12 — — — (13 ) — — 86 1 Total $ 1,288 $ (9 ) $ 53 $ 273 $ (278 ) $ (56 ) $ 17 $ (57 ) $ 1,231 $ — Level 3 (In millions) Balance as of January 1, 2015 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 Level 3 Transfers out of Level 3 Balance as of June 30, 2015 Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2015 recognized in Net income (loss) Fixed maturity securities: Corporate and other bonds $ 162 $ (1 ) $ (1 ) $ 12 $ (12 ) $ (21 ) $ 37 $ (35 ) $ 141 $ (3 ) States, municipalities and political subdivisions 94 1 — — — (10 ) — — 85 — Asset-backed: Residential mortgage-backed 189 2 (2 ) 72 — (21 ) — (33 ) 207 — Commercial mortgage-backed 83 2 — 15 — (2 ) 17 (28 ) 87 — Other asset-backed 655 3 10 82 (234 ) (20 ) — (6 ) 490 — Total asset-backed 927 7 8 169 (234 ) (43 ) 17 (67 ) 784 — Total fixed maturity securities 1,183 7 7 181 (246 ) (74 ) 54 (102 ) 1,010 (3 ) Equity securities 16 — — — — — — — 16 — Life settlement contracts 82 17 — — — (24 ) — — 75 (1 ) Total $ 1,281 $ 24 $ 7 $ 181 $ (246 ) $ (98 ) $ 54 $ (102 ) $ 1,101 $ (4 ) Level 3 (In millions) Balance as of January 1, 2014 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 Level 3 Transfers out of Level 3 Balance as of June 30, 2014 Unrealized gains (losses) on Level 3 assets and liabilities held as of June 30, 2014 recognized in Net income (loss) Fixed maturity securities: Corporate and other bonds $ 204 $ 2 $ 1 $ 26 $ (10 ) $ (10 ) $ 8 $ (27 ) $ 194 $ — States, municipalities and political subdivisions 71 1 2 1 (10 ) — 14 — 79 — Asset-backed: Residential mortgage-backed 331 (23 ) 62 47 (174 ) (40 ) 21 (39 ) 185 — Commercial mortgage-backed 151 2 — — (60 ) (2 ) 12 (44 ) 59 — Other asset-backed 446 1 4 377 (111 ) (90 ) — (1 ) 626 (1 ) Total asset-backed 928 (20 ) 66 424 (345 ) (132 ) 33 (84 ) 870 (1 ) Total fixed maturity securities 1,203 (17 ) 69 451 (365 ) (142 ) 55 (111 ) 1,143 (1 ) Equity securities 11 3 (4 ) — (8 ) — — — 2 — Life settlement contracts 88 22 — — — (24 ) — — 86 2 Separate account business 1 — — — — — — (1 ) — — Total $ 1,303 $ 8 $ 65 $ 451 $ (373 ) $ (166 ) $ 55 $ (112 ) $ 1,231 $ 1 |
Quantitative information about significant unobservable inputs in the fair value measurement of level 3 assets | The following tables present 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. June 30, 2015 Estimated Fair Value (In millions) Valuation Technique(s) Unobservable Input(s) Range (Weighted Average) Fixed maturity securities $ 97 Discounted cash flow Credit spread 2% - 13% (3%) Life settlement contracts 75 Discounted cash flow Discount rate risk premium 9% Mortality assumption 55% - 1676% (165%) December 31, 2014 Estimated Fair Value Valuation Technique(s) Unobservable Input(s) Range (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%) |
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 assets and liabilities which are not measured at fair value on the Condensed Consolidated Balance Sheets are presented in the following tables. June 30, 2015 Carrying Amount Estimated Fair Value (In millions) Level 1 Level 2 Level 3 Total Assets Mortgage loans $ 622 $ — $ — $ 640 $ 640 Liabilities Long term debt $ 2,560 $ — $ 2,843 $ — $ 2,843 December 31, 2014 Carrying Estimated Fair Value (In millions) Level 1 Level 2 Level 3 Total Assets Notes receivable for the issuance of common stock $ 1 $ — $ — $ 1 $ 1 Mortgage loans 588 — — 608 608 Liabilities Long term debt $ 2,559 $ — $ 2,883 $ — $ 2,883 |
Claim and Claim Adjustment Ex22
Claim and Claim Adjustment Expense Reserves (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Liability for Claims and Claims Adjustment Expense [Abstract] | |
Net prior year development | The following tables and discussion present net prior year development recorded for Specialty, Commercial, International and Corporate & Other Non-Core segments. Three months ended June 30, 2015 (In millions) Specialty Commercial International Corporate & Other Non-Core Total Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development $ (13 ) $ 16 $ (8 ) $ — $ (5 ) Pretax (favorable) unfavorable premium development (2 ) (11 ) (2 ) — (15 ) Total pretax (favorable) unfavorable net prior year development $ (15 ) $ 5 $ (10 ) $ — $ (20 ) Three months ended June 30, 2014 (In millions) Specialty Commercial International Corporate & Other Non-Core Total Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development $ (41 ) $ 90 $ (25 ) $ — $ 24 Pretax (favorable) unfavorable premium development (2 ) (6 ) 6 — (2 ) Total pretax (favorable) unfavorable net prior year development $ (43 ) $ 84 $ (19 ) $ — $ 22 Six months ended June 30, 2015 (In millions) Specialty Commercial International Corporate & Other Non-Core Total Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development $ (11 ) $ 11 $ (12 ) $ — $ (12 ) Pretax (favorable) unfavorable premium development (8 ) (12 ) 14 — (6 ) Total pretax (favorable) unfavorable net prior year development $ (19 ) $ (1 ) $ 2 $ — $ (18 ) Six months ended June 30, 2014 (In millions) Specialty Commercial International Corporate & Other Non-Core Total Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development $ (44 ) $ 108 $ (15 ) $ — $ 49 Pretax (favorable) unfavorable premium development (8 ) (24 ) (1 ) — (33 ) Total pretax (favorable) unfavorable net prior year development $ (52 ) $ 84 $ (16 ) $ — $ 16 |
Net prior year claim and allocated claim adjustment expense reserve development for Specialty segment | The following table presents further detail of the net prior year claim and allocated claim adjustment expense reserve development (development) recorded for the Specialty segment. Periods ended June 30 Three Months Six Months (In millions) 2015 2014 2015 2014 Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development: Medical Professional Liability $ (6 ) $ 1 $ 8 $ 1 Other Professional Liability and Management Liability (1 ) (44 ) (4 ) (50 ) Surety — — 1 1 Warranty 1 — 1 — Other (7 ) 2 (17 ) 4 Total pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development $ (13 ) $ (41 ) $ (11 ) $ (44 ) |
Net prior year claim and allocated claim adjustment expense reserve development for Commercial segment | The following table presents further detail of the development recorded for the Commercial segment. The majority of the 2014 unfavorable development relates to business classes which the Company has exited, but also includes Small Business where the Company has taken underwriting actions in an effort to improve profitability. Periods ended June 30 Three Months Six Months (In millions) 2015 2014 2015 2014 Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development: Commercial Auto $ 7 $ 19 $ 7 $ 39 General Liability 1 32 5 32 Workers' Compensation 24 39 23 50 Property and Other (16 ) — (24 ) (13 ) Total pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development $ 16 $ 90 $ 11 $ 108 |
Net prior year claim and allocated claim adjustment expense reserve development for International segment | The following table presents further detail of the development recorded for the International segment. Periods ended June 30 Three Months Six Months (In millions) 2015 2014 2015 2014 Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development: Medical Professional Liability $ — $ — $ — $ 1 Other Professional Liability (5 ) (14 ) (5 ) (15 ) Liability (2 ) (4 ) (7 ) (6 ) Property & Marine (8 ) (7 ) (14 ) 1 Other 7 — 14 (6 ) Commutations — — — 10 Total pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development $ (8 ) $ (25 ) $ (12 ) $ (15 ) |
Impact of loss portfolio transfer on consolidated statements of operations | The following table displays the impact of the Loss Portfolio Transfer on the Condensed Consolidated Statements of Operations. Periods ended June 30 Three Months Six Months (In millions) 2015 2014 2015 2014 Net A&EP adverse development before consideration of LPT $ 150 $ — $ 150 $ — Provision for uncollectible third-party reinsurance on A&EP — — — — Additional amounts ceded under LPT 150 — 150 — Retroactive reinsurance benefit recognized (66 ) (1 ) (71 ) (5 ) Pretax impact of unrecognized deferred retroactive reinsurance benefit $ 84 $ (1 ) $ 79 $ (5 ) |
Benefit Plans (Tables)
Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of net periodic cost (benefit) | The components of net periodic cost (benefit) are presented in the following table. Periods ended June 30 Three Months Six Months (In millions) 2015 2014 2015 2014 Pension cost (benefit) Service cost $ 2 $ 1 $ 4 $ 4 Interest cost on projected benefit obligation 28 33 56 66 Expected return on plan assets (44 ) (48 ) (87 ) (96 ) Amortization of net actuarial loss 10 7 19 13 Net periodic pension cost (benefit) $ (4 ) $ (7 ) $ (8 ) $ (13 ) Postretirement cost (benefit) Interest cost on projected benefit obligation $ — $ 1 $ — $ 1 Amortization of prior service credit (1 ) (5 ) (1 ) (9 ) Amortization of net actuarial loss 1 — 1 — Curtailment gain — (86 ) — (86 ) Net periodic postretirement cost (benefit) $ — $ (90 ) $ — $ (94 ) |
Accumulated Other Comprehensi24
Accumulated Other Comprehensive Income (Loss) by Component (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) by Component | The following tables present the changes in Accumulated other comprehensive income (loss) by component. (In millions) 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 as of April 1, 2015 $ 35 $ 1,054 $ (627 ) $ (41 ) $ 421 Other comprehensive income (loss) before reclassifications (4 ) (372 ) 36 49 (291 ) Amounts reclassified from Accumulated other comprehensive income (loss) after tax (expense) benefit of $-, $5, $4, $- and $9 — (7 ) (6 ) — (13 ) Other comprehensive income (loss) after tax (expense) benefit of $2, $181, $(23), $- and $160 (4 ) (365 ) 42 49 (278 ) Balance as of June 30, 2015 $ 31 $ 689 $ (585 ) $ 8 $ 143 (In millions) 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 as of April 1, 2014 $ 33 $ 912 $ 30 $ (425 ) $ 142 $ 692 Other comprehensive income (loss) before reclassifications 2 257 7 — 42 308 Amounts reclassified from Accumulated other comprehensive income (loss) after tax (expense) benefit of $-, $6, $-, $(28), $- and $(22) — (13 ) — 51 — 38 Other comprehensive income (loss) after tax (expense) benefit of $(1), $(146), $(5), $28, $- and $(124) 2 270 7 (51 ) 42 270 Balance as of June 30, 2014 $ 35 $ 1,182 $ 37 $ (476 ) $ 184 $ 962 (In millions) 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 as of January 1, 2015 $ 36 $ 942 $ (633 ) $ 55 $ 400 Other comprehensive income (loss) before reclassifications (5 ) (251 ) 36 (47 ) (267 ) Amounts reclassified from Accumulated other comprehensive income (loss) after tax (expense) benefit of $-, $5, $7, $- and $12 — 2 (12 ) — (10 ) Other comprehensive income (loss) after tax (expense) benefit of $2, $119, $(26), $- and $95 (5 ) (253 ) 48 (47 ) (257 ) Balance as of June 30, 2015 $ 31 $ 689 $ (585 ) $ 8 $ 143 (In millions) 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 as of January 1, 2014 $ 26 $ 692 $ — $ (426 ) $ 150 $ 442 Transfer to net assets held for sale (5 ) (17 ) 22 — — — Other comprehensive income (loss) before reclassifications 14 521 15 — 34 584 Amounts reclassified from Accumulated other comprehensive income (loss) after tax (expense) benefit of $-, $(8), $-, $(27), $- and $(35) — 14 — 50 — 64 Other comprehensive income (loss) after tax (expense) benefit of $(7), $(273), $(10), $27, $- and $(263) 14 507 15 (50 ) 34 520 Balance as of June 30, 2014 $ 35 $ 1,182 $ 37 $ (476 ) $ 184 $ 962 |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The Company's results of continuing operations and selected balance sheet items by segment are presented in the following tables. Three months ended June 30, 2015 Specialty Commercial International Life & Group Non-Core Corporate & Other Non-Core (In millions) Eliminations Total Operating revenues Net earned premiums $ 689 $ 703 $ 207 $ 137 $ — $ (1 ) $ 1,735 Net investment income 134 169 13 179 5 — 500 Other revenues 81 9 (1 ) — 3 — 92 Total operating revenues 904 881 219 316 8 (1 ) 2,327 Claims, Benefits and Expenses Net incurred claims and benefits 416 507 114 344 85 — 1,466 Policyholders’ dividends 1 2 — — — — 3 Amortization of deferred acquisition costs 146 117 45 6 — — 314 Other insurance related expenses 66 130 31 34 (1 ) (1 ) 259 Other expenses 69 5 (5 ) 5 47 — 121 Total claims, benefits and expenses 698 761 185 389 131 (1 ) 2,163 Operating income (loss) before income tax 206 120 34 (73 ) (123 ) — 164 Income tax (expense) benefit on operating income (loss) (69 ) (42 ) (12 ) 49 42 — (32 ) Net operating income (loss) 137 78 22 (24 ) (81 ) — 132 Net realized investment gains (losses) — 2 1 (5 ) 2 — — Income tax (expense) benefit on net realized investment gains (losses) — 2 (1 ) 6 (1 ) — 6 Net realized investment gains (losses), after tax — 4 — 1 1 — 6 Net income (loss) from continuing operations $ 137 $ 82 $ 22 $ (23 ) $ (80 ) $ — $ 138 Three months ended June 30, 2014 Specialty Commercial International Life & Group Non-Core Corporate & Other Non-Core (In millions) Eliminations Total Operating revenues Net earned premiums $ 709 $ 732 $ 231 $ 139 $ — $ — $ 1,811 Net investment income 153 201 16 173 7 — 550 Other revenues 74 8 — 8 5 (2 ) 93 Total operating revenues 936 941 247 320 12 (2 ) 2,454 Claims, Benefits and Expenses Net incurred claims and benefits 404 610 118 304 1 — 1,437 Policyholders’ dividends 1 3 — — — — 4 Amortization of deferred acquisition costs 148 126 54 7 — — 335 Other insurance related expenses 67 125 36 31 — — 259 Other expenses 65 7 5 (3 ) (31 ) (2 ) 41 Total claims, benefits and expenses 685 871 213 339 (30 ) (2 ) 2,076 Operating income (loss) before income tax 251 70 34 (19 ) 42 — 378 Income tax (expense) benefit on operating income (loss) (84 ) (21 ) (14 ) 28 (15 ) — (106 ) Net operating income (loss) 167 49 20 9 27 — 272 Net realized investment gains (losses) (5 ) (5 ) (3 ) (4 ) 3 — (14 ) Income tax (expense) benefit on net realized investment gains (losses) 1 (2 ) 4 1 (1 ) — 3 Net realized investment gains (losses), after tax (4 ) (7 ) 1 (3 ) 2 — (11 ) Net income (loss) from continuing operations $ 163 $ 42 $ 21 $ 6 $ 29 $ — $ 261 Six months ended June 30, 2015 Specialty Commercial International Life & Group Non-Core Corporate & Other Non-Core (In millions) Eliminations Total Operating revenues Net earned premiums $ 1,369 $ 1,381 $ 398 $ 275 $ — $ (1 ) $ 3,422 Net investment income 289 373 27 358 11 — 1,058 Other revenues 159 18 (1 ) 9 5 (1 ) 189 Total operating revenues 1,817 1,772 424 642 16 (2 ) 4,669 Claims, Benefits and Expenses Net incurred claims and benefits 845 961 230 684 81 — 2,801 Policyholders’ dividends 2 5 — — — — 7 Amortization of deferred acquisition costs 290 234 80 13 — — 617 Other insurance related expenses 135 257 68 69 (1 ) (1 ) 527 Other expenses 136 13 — 9 93 (1 ) 250 Total claims, benefits and expenses 1,408 1,470 378 775 173 (2 ) 4,202 Operating income (loss) before income tax 409 302 46 (133 ) (157 ) — 467 Income tax (expense) benefit on operating income (loss) (137 ) (104 ) (15 ) 92 54 — (110 ) Net operating income (loss) 272 198 31 (41 ) (103 ) — 357 Net realized investment gains (losses) 4 6 2 (4 ) 2 — 10 Income tax (expense) benefit on net realized investment gains (losses) (1 ) (1 ) (1 ) 8 (1 ) — 4 Net realized investment gains (losses), after tax 3 5 1 4 1 — 14 Net income (loss) from continuing operations $ 275 $ 203 $ 32 $ (37 ) $ (102 ) $ — $ 371 June 30, 2015 (In millions) Reinsurance receivables $ 697 $ 660 $ 192 $ 534 $ 2,619 $ — $ 4,702 Insurance receivables 862 1,068 302 10 3 — 2,245 Deferred acquisition costs 306 224 91 — — — 621 Goodwill 117 — 36 — — — 153 Insurance reserves Claim and claim adjustment expenses 6,365 9,391 1,401 3,248 2,788 — 23,193 Unearned premiums 1,794 1,384 506 132 — (1 ) 3,815 Future policy benefits — — — 9,360 — — 9,360 Six months ended June 30, 2014 Specialty Commercial International Life & Group Non-Core Corporate & Other Non-Core (In millions) Eliminations Total Operating revenues Net earned premiums $ 1,401 $ 1,467 $ 472 $ 278 $ — $ (1 ) $ 3,617 Net investment income 297 392 31 344 12 — 1,076 Other revenues 142 18 — 13 7 (2 ) 178 Total operating revenues 1,840 1,877 503 635 19 (3 ) 4,871 Claims, Benefits and Expenses Net incurred claims and benefits 846 1,178 248 610 (2 ) — 2,880 Policyholders’ dividends 2 5 — — — — 7 Amortization of deferred acquisition costs 291 249 109 15 — — 664 Other insurance related expenses 132 251 76 63 — (1 ) 521 Other expenses 126 15 12 (2 ) 20 (2 ) 169 Total claims, benefits and expenses 1,397 1,698 445 686 18 (3 ) 4,241 Operating income (loss) before income tax 443 179 58 (51 ) 1 — 630 Income tax (expense) benefit on operating income (loss) (147 ) (56 ) (22 ) 58 (1 ) — (168 ) Net operating income (loss) 296 123 36 7 — — 462 Net realized investment gains (losses) 6 5 — 12 9 — 32 Income tax (expense) benefit on net realized investment gains (losses) (2 ) (4 ) 1 (5 ) (3 ) — (13 ) Net realized investment gains (losses), after tax 4 1 1 7 6 — 19 Net income (loss) from continuing operations $ 300 $ 124 $ 37 $ 14 $ 6 $ — $ 481 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 |
Revenues by line of business | The following table presents revenue by line of business for each reportable segment. Revenues are comprised of Operating revenues and Net realized investment gains and losses. Periods ended June 30 Three Months Six Months (In millions) 2015 2014 2015 2014 Specialty Management & Professional Liability $ 674 $ 710 $ 1,371 $ 1,414 Surety 125 125 245 247 Warranty & Alternative Risks 105 96 205 185 Specialty revenues 904 931 1,821 1,846 Commercial Middle Market 412 412 821 815 Small Business 158 181 323 365 Other Commercial Insurance 313 343 634 702 Commercial revenues 883 936 1,778 1,882 International Canada 54 70 109 141 CNA Europe 77 83 154 171 Hardy 89 91 163 191 International revenues 220 244 426 503 Life & Group Non-Core revenues 311 316 638 647 Corporate & Other Non-Core revenues 10 15 18 28 Eliminations (1 ) (2 ) (2 ) (3 ) Total revenues $ 2,327 $ 2,440 $ 4,679 $ 4,903 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Results of discontinued operations | The results of discontinued operations reflected in the Condensed Consolidated Statements of Operations are presented in the following table. Periods ended June 30, 2014 (In millions) Three Months Six Months Revenues Net investment income $ 39 $ 80 Net realized investment gains 1 2 Total revenues 40 82 Claims, Benefits and Expenses Insurance claims and policyholders' benefits 32 63 Other operating expenses 1 2 Total claims, benefits and expenses 33 65 Income before income tax 7 17 Income tax expense (1 ) (4 ) Income from discontinued operations, net of income tax 6 13 Impairment loss on sale, net of income tax benefit of $- and $41 — (214 ) Income (loss) from discontinued operations $ 6 $ (201 ) |
General General (Details)
General General (Details) - Jun. 30, 2014 - USD ($) $ in Millions | Total | Total |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Discontinued Operation, Provision for Loss (Gain) on Disposal, Net of Tax | $ 0 | $ 214 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 238 | 180 | 208 | 110 |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 423 | 622 | 543 | 644 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Investments [Abstract] | ||
Reduction of net unrealized gains on investments included in AOCI due to shadow adjustments | $ 1,022 | $ 1,288 |
Future capital call commitments for limited partnership investments | 295 | |
Mortgage loan commitments | 6 | |
Commitments to purchase or fund privately placed debt securities | 134 | |
Commitments to sell various privately placed debt securities | $ 79 |
Investments (Net investment inc
Investments (Net investment income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net Investment Income [Line Items] | ||||
Gross investment income | $ 515 | $ 564 | $ 1,087 | $ 1,103 |
Investment expense | (15) | (14) | (29) | (27) |
Net investment income | 500 | 550 | 1,058 | 1,076 |
Fixed maturity securities [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 452 | 451 | 895 | 903 |
Short term investments [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 0 | 0 | 2 | 1 |
Limited partnership investments [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 48 | 97 | 162 | 170 |
Equity securities [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 3 | 3 | 6 | 5 |
Mortgage loans [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 9 | 9 | 17 | 15 |
Trading portfolio [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 3 | 3 | 5 | 6 |
Other [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | $ 0 | $ 1 | $ 0 | $ 3 |
Investments (Net realized inves
Investments (Net realized investment gains (losses)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net realized investment gains (losses) | $ 0 | $ (14) | $ 10 | $ 32 |
Fixed maturity securities [Member] | ||||
Gross realized gains | 36 | 20 | 69 | 73 |
Gross realized losses | (48) | (39) | (69) | (54) |
Net realized investment gains (losses) | (12) | (19) | 0 | 19 |
Equity securities [Member] | ||||
Gross realized gains | 0 | 0 | 1 | 5 |
Gross realized losses | (1) | 0 | (2) | 0 |
Net realized investment gains (losses) | (1) | 0 | (1) | 5 |
Derivative [Member] | ||||
Net realized investment gains (losses) | 11 | 1 | 10 | 1 |
Short term investments and other [Member] | ||||
Net realized investment gains (losses) | $ 2 | $ 4 | $ 1 | $ 7 |
Investments (Components of othe
Investments (Components of other-than-temporary impairment losses recognized in earnings) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Other-than-temporary impairment losses recognized in earnings | $ 31 | $ 5 | $ 43 | $ 7 |
Corporate and other bonds [Member] | ||||
Other-than-temporary impairment losses recognized in earnings | 11 | 2 | 16 | 3 |
States, municipalities and political subdivisions [Member] | ||||
Other-than-temporary impairment losses recognized in earnings | 13 | 0 | 18 | 0 |
Residential mortgage-backed [Member] | ||||
Other-than-temporary impairment losses recognized in earnings | 5 | 1 | 6 | 2 |
Other asset-backed [Member] | ||||
Other-than-temporary impairment losses recognized in earnings | 1 | 1 | 1 | 1 |
Total asset-backed [Member] | ||||
Other-than-temporary impairment losses recognized in earnings | 6 | 2 | 7 | 3 |
Total fixed maturity securities available-for-sale [Member] | ||||
Other-than-temporary impairment losses recognized in earnings | 30 | 4 | 41 | 6 |
Common Stock [Member] | ||||
Other-than-temporary impairment losses recognized in earnings | 0 | 1 | 1 | 1 |
Short term investments [Member] | ||||
Other-than-temporary impairment losses recognized in earnings | $ 1 | $ 0 | $ 1 | $ 0 |
Investments (Summary of fixed m
Investments (Summary of fixed maturity and equity securities) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Cost or Amortized Cost | $ 37,407 | $ 37,545 |
Gross Unrealized Gain | 2,819 | 3,544 |
Gross Unrealized Loss | 161 | 99 |
Estimated fair value | 40,065 | 40,990 |
Corporate and other bonds [Member] | ||
Cost or Amortized Cost | 16,863 | 17,210 |
Gross Unrealized Gain | 1,337 | 1,721 |
Gross Unrealized Loss | 88 | 61 |
Estimated fair value | 18,112 | 18,870 |
Unrealized OTTI Losses (Gains) | 0 | 0 |
States, municipalities and political subdivisions [Member] | ||
Cost or Amortized Cost | 11,707 | 11,285 |
Gross Unrealized Gain | 1,186 | 1,463 |
Gross Unrealized Loss | 40 | 8 |
Estimated fair value | 12,853 | 12,740 |
Unrealized OTTI Losses (Gains) | 0 | 0 |
Residential mortgage-backed [Member] | ||
Cost or Amortized Cost | 4,940 | 5,028 |
Gross Unrealized Gain | 175 | 218 |
Gross Unrealized Loss | 15 | 13 |
Estimated fair value | 5,100 | 5,233 |
Unrealized OTTI Losses (Gains) | (46) | (53) |
Commercial mortgage-backed [Member] | ||
Cost or Amortized Cost | 2,186 | 2,056 |
Gross Unrealized Gain | 77 | 93 |
Gross Unrealized Loss | 12 | 5 |
Estimated fair value | 2,251 | 2,144 |
Unrealized OTTI Losses (Gains) | (2) | (2) |
Other asset-backed [Member] | ||
Cost or Amortized Cost | 1,044 | 1,234 |
Gross Unrealized Gain | 12 | 11 |
Gross Unrealized Loss | 1 | 10 |
Estimated fair value | 1,055 | 1,235 |
Unrealized OTTI Losses (Gains) | 0 | 0 |
Total asset-backed [Member] | ||
Cost or Amortized Cost | 8,170 | 8,318 |
Gross Unrealized Gain | 264 | 322 |
Gross Unrealized Loss | 28 | 28 |
Estimated fair value | 8,406 | 8,612 |
Unrealized OTTI Losses (Gains) | (48) | (55) |
U.S. Treasury and obligations of government-sponsored enterprises [Member] | ||
Cost or Amortized Cost | 24 | 26 |
Gross Unrealized Gain | 5 | 5 |
Gross Unrealized Loss | 0 | 0 |
Estimated fair value | 29 | 31 |
Unrealized OTTI Losses (Gains) | 0 | 0 |
Foreign Government Debt Securities [Member] | ||
Cost or Amortized Cost | 387 | 438 |
Gross Unrealized Gain | 13 | 16 |
Gross Unrealized Loss | 1 | 0 |
Estimated fair value | 399 | 454 |
Unrealized OTTI Losses (Gains) | 0 | 0 |
Redeemable preferred stock [Member] | ||
Cost or Amortized Cost | 33 | 39 |
Gross Unrealized Gain | 2 | 3 |
Gross Unrealized Loss | 0 | 0 |
Estimated fair value | 35 | 42 |
Unrealized OTTI Losses (Gains) | 0 | 0 |
Total fixed maturity securities available-for-sale [Member] | ||
Cost or Amortized Cost | 37,184 | 37,316 |
Gross Unrealized Gain | 2,807 | 3,530 |
Gross Unrealized Loss | 157 | 97 |
Estimated fair value | 39,834 | 40,749 |
Unrealized OTTI Losses (Gains) | (48) | (55) |
Total fixed maturity securities trading [Member] | ||
Cost or Amortized Cost, Trading Securities | 15 | 19 |
Estimated Fair Value, Trading Securities | 15 | 19 |
Common Stock [Member] | ||
Cost or Amortized Cost | 54 | 38 |
Gross Unrealized Gain | 8 | 9 |
Gross Unrealized Loss | 2 | 0 |
Estimated fair value | 60 | 47 |
Preferred stock [Member] | ||
Cost or Amortized Cost | 154 | 172 |
Gross Unrealized Gain | 4 | 5 |
Gross Unrealized Loss | 2 | 2 |
Estimated fair value | 156 | 175 |
Total equity securities available-for-sale [Member] | ||
Cost or Amortized Cost | 208 | 210 |
Gross Unrealized Gain | 12 | 14 |
Gross Unrealized Loss | 4 | 2 |
Estimated fair value | $ 216 | $ 222 |
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 ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||||
Beginning balance of credit losses on fixed maturity securities | $ 61 | $ 69 | $ 62 | $ 74 |
Reductions for securities sold during the period | (2) | (3) | (3) | (5) |
Reductions for securities the Company intends to sell or more likely than not will be required to sell | 0 | 0 | 0 | (3) |
Ending balance of credit losses on fixed maturity securities | $ 59 | $ 66 | $ 59 | $ 66 |
Investments (Securities in a gr
Investments (Securities in a gross unrealized loss position) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | $ 5,928 | $ 2,855 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 128 | 70 |
Estimated Fair Value, 12 Months or Longer | 542 | 707 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 33 | 29 |
Estimated Fair Value, Total | 6,470 | 3,562 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 161 | 99 |
Corporate and other bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 3,201 | 1,330 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 73 | 46 |
Estimated Fair Value, 12 Months or Longer | 152 | 277 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 15 | 15 |
Estimated Fair Value, Total | 3,353 | 1,607 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 88 | 61 |
States, municipalities and political subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 1,523 | 335 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 34 | 5 |
Estimated Fair Value, 12 Months or Longer | 143 | 127 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 6 | 3 |
Estimated Fair Value, Total | 1,666 | 462 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 40 | 8 |
Residential mortgage-backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 451 | 293 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 6 | 5 |
Estimated Fair Value, 12 Months or Longer | 167 | 189 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 9 | 8 |
Estimated Fair Value, Total | 618 | 482 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 15 | 13 |
Commercial mortgage-backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 557 | 264 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 9 | 2 |
Estimated Fair Value, 12 Months or Longer | 61 | 99 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 3 | 3 |
Estimated Fair Value, Total | 618 | 363 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 12 | 5 |
Other asset-backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 135 | 607 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 1 | 10 |
Estimated Fair Value, 12 Months or Longer | 18 | 7 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Estimated Fair Value, Total | 153 | 614 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 1 | 10 |
Total asset-backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 1,143 | 1,164 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 16 | 17 |
Estimated Fair Value, 12 Months or Longer | 246 | 295 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 12 | 11 |
Estimated Fair Value, Total | 1,389 | 1,459 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 28 | 28 |
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 | 3 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 0 |
Estimated Fair Value, 12 Months or Longer | 0 | 4 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Estimated Fair Value, Total | 3 | 7 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 0 | 0 |
Foreign Government Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 20 | 3 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 1 | 0 |
Estimated Fair Value, 12 Months or Longer | 1 | 3 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Estimated Fair Value, Total | 21 | 6 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 1 | 0 |
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 | 5,890 | 2,838 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 124 | 68 |
Estimated Fair Value, 12 Months or Longer | 542 | 706 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 33 | 29 |
Estimated Fair Value, Total | 6,432 | 3,544 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 157 | 97 |
Common Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 21 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 2 | |
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 | 21 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 2 | |
Preferred stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 17 | 17 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 2 | 2 |
Estimated Fair Value, 12 Months or Longer | 0 | 1 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Estimated Fair Value, Total | 17 | 18 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ 2 | $ 2 |
Investments (Contractual maturi
Investments (Contractual maturity) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Investments [Abstract] | ||
Due in one year or less, cost or amortized cost | $ 1,539 | $ 2,479 |
Due after one year through five years, cost or amortized cost | 7,507 | 9,054 |
Due after five years through ten years, cost or amortized cost | 14,099 | 12,055 |
Due after ten years, cost or amortized cost | 14,039 | 13,728 |
Total Amortized Cost Basis | 37,184 | 37,316 |
Due in one year or less, estimated fair value | 1,559 | 2,511 |
Due after one year through five years, estimated fair value | 7,956 | 9,605 |
Due after five years through ten years, estimated fair value | 14,549 | 12,584 |
Due after ten years, estimated fair value | 15,770 | 16,049 |
Total Estimated Fair Value | $ 39,834 | $ 40,749 |
Investments Derivative Financia
Investments Derivative Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Derivative [Line Items] | ||
Estimated fair value asset | $ 0 | $ 0 |
Estimated fair value liability | (6) | 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 | 183 | 184 |
Estimated fair value asset | 0 | 0 |
Estimated fair value liability | $ (6) | $ 3 |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Fair Value Disclosures [Abstract] | ||||
Fair Value, Assets, Level 2 to Level 1, Transfers | $ 0 | $ 1 | $ 0 | $ 24 |
Fair Value, Assets, Level 1 to Level 2, Transfers | $ 0 | $ 0 | $ 0 | $ 1 |
Fair Value (Assets and liabilit
Fair Value (Assets and liabilities measured at fair value on a recurring basis) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, measured on a recurring basis | $ 41,775 | $ 42,757 |
Fair value of liabilities, measured on a recurring basis | (6) | 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 | 18,127 | 18,889 |
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 | 12,853 | 12,740 |
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 | 5,100 | 5,233 |
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 | 2,251 | 2,144 |
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 | 1,055 | 1,235 |
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 | 8,406 | 8,612 |
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 | 29 | 31 |
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 | 399 | 454 |
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 | 35 | 42 |
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 | 39,849 | 40,768 |
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 | 216 | 222 |
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 | 43 | 41 |
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 | 1,592 | 1,644 |
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 | 75 | 82 |
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 | (6) | 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 | 943 | 957 |
Fair value of liabilities, measured on a recurring basis | 0 | 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 | 28 | 32 |
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] | 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 | 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 | 28 |
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 | 32 | 41 |
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 | 24 | 30 |
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 | 112 | 131 |
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 | 139 | 145 |
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 | 692 | 681 |
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] | 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 | 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 | 39,731 | 40,519 |
Fair value of liabilities, measured on a recurring basis | (6) | 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 | 17,958 | 18,695 |
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 | 12,768 | 12,646 |
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 | 4,893 | 5,044 |
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 | 2,164 | 2,061 |
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 | 565 | 580 |
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 | 7,622 | 7,685 |
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 | 1 | 3 |
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 | 367 | 413 |
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 | 11 | 12 |
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 | 38,727 | 39,454 |
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 | 61 |
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 | 43 | 41 |
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 | 900 | 963 |
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] | 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 | (6) | 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 | 1,101 | 1,281 |
Fair value of liabilities, measured on a recurring basis | 0 | 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 | 141 | 162 |
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 | 85 | 94 |
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 | 207 | 189 |
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 | 87 | 83 |
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 | 490 | 655 |
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 | 784 | 927 |
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 | 1,010 | 1,183 |
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 | 16 |
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 | 75 | 82 |
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 | $ 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 ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, Beginning, Assets | $ 1,213 | $ 1,288 | $ 1,281 | $ 1,303 |
Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss) | 6 | (9) | 24 | 8 |
Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss) | 0 | 53 | 7 | 65 |
Purchases | 56 | 273 | 181 | 451 |
Sales | (90) | (278) | (246) | (373) |
Settlements | (45) | (56) | (98) | (166) |
Transfers into Level 3 | 17 | 17 | 54 | 55 |
Transfers out of Level 3 | (56) | (57) | (102) | (112) |
Balance, Ending, Assets | 1,101 | 1,231 | 1,101 | 1,231 |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | (5) | 0 | (4) | 1 |
Corporate and other bonds [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, Beginning, Assets | 186 | 189 | 162 | 204 |
Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss) | (2) | 1 | (1) | 2 |
Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss) | (1) | 0 | (1) | 1 |
Purchases | 0 | 21 | 12 | 26 |
Sales | 0 | (6) | (12) | (10) |
Settlements | (7) | (5) | (21) | (10) |
Transfers into Level 3 | 0 | 5 | 37 | 8 |
Transfers out of Level 3 | (35) | (11) | (35) | (27) |
Balance, Ending, Assets | 141 | 194 | 141 | 194 |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | (3) | 0 | (3) | 0 |
States, municipalities and political subdivisions [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, Beginning, Assets | 86 | 86 | 94 | 71 |
Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss) | 0 | 1 | 1 | 1 |
Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss) | 0 | 1 | 0 | 2 |
Purchases | 0 | 1 | 0 | 1 |
Sales | 0 | (10) | 0 | (10) |
Settlements | (1) | 0 | (10) | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 14 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Balance, Ending, Assets | 85 | 79 | 85 | 79 |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 0 | 0 | 0 | 0 |
Residential mortgage-backed [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, Beginning, Assets | 232 | 359 | 189 | 331 |
Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss) | 1 | (24) | 2 | (23) |
Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss) | (2) | 47 | (2) | 62 |
Purchases | 0 | 22 | 72 | 47 |
Sales | 0 | (174) | 0 | (174) |
Settlements | (11) | (19) | (21) | (40) |
Transfers into Level 3 | 0 | 0 | 0 | 21 |
Transfers out of Level 3 | (13) | (26) | (33) | (39) |
Balance, Ending, Assets | 207 | 185 | 207 | 185 |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 0 | 0 | 0 | 0 |
Commercial Mortgage Backed Securities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, Beginning, Assets | 64 | 126 | 83 | 151 |
Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss) | 1 | 1 | 2 | 2 |
Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss) | (1) | 1 | 0 | 0 |
Purchases | 9 | 0 | 15 | 0 |
Sales | 0 | (60) | 0 | (60) |
Settlements | (1) | (1) | (2) | (2) |
Transfers into Level 3 | 17 | 12 | 17 | 12 |
Transfers out of Level 3 | (2) | (20) | (28) | (44) |
Balance, Ending, Assets | 87 | 59 | 87 | 59 |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 0 | 0 | 0 | 0 |
Other asset-backed [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, Beginning, Assets | 553 | 439 | 655 | 446 |
Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss) | 2 | 0 | 3 | 1 |
Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss) | 1 | 4 | 10 | 4 |
Purchases | 47 | 229 | 82 | 377 |
Sales | (90) | (28) | (234) | (111) |
Settlements | (17) | (18) | (20) | (90) |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | (6) | 0 | (6) | (1) |
Balance, Ending, Assets | 490 | 626 | 490 | 626 |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 0 | (1) | 0 | (1) |
Total asset-backed [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, Beginning, Assets | 849 | 924 | 927 | 928 |
Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss) | 4 | (23) | 7 | (20) |
Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss) | (2) | 52 | 8 | 66 |
Purchases | 56 | 251 | 169 | 424 |
Sales | (90) | (262) | (234) | (345) |
Settlements | (29) | (38) | (43) | (132) |
Transfers into Level 3 | 17 | 12 | 17 | 33 |
Transfers out of Level 3 | (21) | (46) | (67) | (84) |
Balance, Ending, Assets | 784 | 870 | 784 | 870 |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 0 | (1) | 0 | (1) |
Fixed maturity securities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, Beginning, Assets | 1,121 | 1,199 | 1,183 | 1,203 |
Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss) | 2 | (21) | 7 | (17) |
Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss) | (3) | 53 | 7 | 69 |
Purchases | 56 | 273 | 181 | 451 |
Sales | (90) | (278) | (246) | (365) |
Settlements | (37) | (43) | (74) | (142) |
Transfers into Level 3 | 17 | 17 | 54 | 55 |
Transfers out of Level 3 | (56) | (57) | (102) | (111) |
Balance, Ending, Assets | 1,010 | 1,143 | 1,010 | 1,143 |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | (3) | (1) | (3) | (1) |
Equity securities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, Beginning, Assets | 13 | 2 | 16 | 11 |
Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss) | 0 | 0 | 0 | 3 |
Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss) | 3 | 0 | 0 | (4) |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | (8) |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Balance, Ending, Assets | 16 | 2 | 16 | 2 |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 0 | 0 | 0 | 0 |
Life settlement contracts, included in Other assets [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, Beginning, Assets | 79 | 87 | 82 | 88 |
Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss) | 4 | 12 | 17 | 22 |
Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | (8) | (13) | (24) | (24) |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Balance, Ending, Assets | 75 | 86 | 75 | 86 |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | $ (2) | 1 | $ (1) | 2 |
Separate account business [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, Beginning, Assets | 1 | |||
Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss) | 0 | |||
Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss) | 0 | |||
Purchases | 0 | |||
Sales | 0 | |||
Settlements | 0 | |||
Transfers into Level 3 | 0 | |||
Transfers out of Level 3 | (1) | |||
Balance, Ending, Assets | $ 0 | 0 | ||
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | $ 0 |
Fair Value (Quantitative inform
Fair Value (Quantitative information about significant unobservable inputs in the fair value measurement of level 3 assets) (Details) - USD ($) $ / shares in Units, $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Fixed maturity securities [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Assets, Fair Value Disclosure | $ 97 | $ 101 |
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% | 13.00% |
Fixed maturity securities [Member] | Income Approach Valuation Technique [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Credit Spread | 3.00% | 3.00% |
Equity securities [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Assets, Fair Value Disclosure | $ 16 | |
Equity securities [Member] | Market Approach Valuation Technique [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Private offering price | $ 12 | |
Equity securities [Member] | Market Approach Valuation Technique [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Private offering price | 4,391 | |
Equity securities [Member] | Market Approach Valuation Technique [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Private offering price | $ 600 | |
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 | $ 75 | $ 82 |
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% | 55.00% |
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% | 1676.00% |
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 | 165.00% | 163.00% |
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 ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Notes receivable for the issuance of common stock | $ 0 | $ 1 | $ 1 | $ 23 |
Financial Assets [Abstract] | ||||
Mortgage loans | 622 | 588 | ||
Financial Liabilities [Abstract] | ||||
Long term debt | 2,560 | 2,559 | ||
Carrying Amount [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Notes receivable for the issuance of common stock | 1 | |||
Financial Assets [Abstract] | ||||
Mortgage loans | 622 | 588 | ||
Financial Liabilities [Abstract] | ||||
Long term debt | 2,560 | 2,559 | ||
Estimated Fair Value [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Notes receivable for the issuance of common stock | 1 | |||
Financial Assets [Abstract] | ||||
Mortgage loans | 640 | 608 | ||
Financial Liabilities [Abstract] | ||||
Long term debt | 2,843 | 2,883 | ||
Level 1 [Member] | Estimated Fair Value [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Notes receivable for the issuance of common stock | 0 | |||
Financial Assets [Abstract] | ||||
Mortgage loans | 0 | 0 | ||
Financial Liabilities [Abstract] | ||||
Long term debt | 0 | 0 | ||
Level 2 [Member] | Estimated Fair Value [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Notes receivable for the issuance of common stock | 0 | |||
Financial Assets [Abstract] | ||||
Mortgage loans | 0 | 0 | ||
Financial Liabilities [Abstract] | ||||
Long term debt | 2,843 | 2,883 | ||
Level 3 [Member] | Estimated Fair Value [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Notes receivable for the issuance of common stock | 1 | |||
Financial Assets [Abstract] | ||||
Mortgage loans | 640 | 608 | ||
Financial Liabilities [Abstract] | ||||
Long term debt | $ 0 | $ 0 |
Claim and Claim Adjustment Ex43
Claim and Claim Adjustment Expense Reserves (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 48 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2010 | |
Catastrophe losses net of reinsurance | $ 60 | $ 56 | $ 89 | $ 130 | |||
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development, excluding Life & Group | (5) | 24 | (12) | 49 | |||
Specialty [Member] | |||||||
Favorable development in other professional liability and management liability related to lower than expected severity for professional services primarily in accident years 2010 and prior | 38 | 41 | |||||
Unfavorable development in other professional services related to increased claim frequency on public company management liability in accident years 2012 through 2014 | 37 | 37 | |||||
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development, excluding Life & Group | (13) | (41) | (11) | (44) | |||
Commercial [Member] | |||||||
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development, excluding Life & Group | 16 | 90 | 11 | 108 | |||
Loss Portfolio Transfer [Member] | |||||||
Net A&EP claim and allocated claim adjustment expense reserves ceded to NICO | $ 1,600 | ||||||
Aggregate limit under AEP Loss Portfolio Transfer | 4,000 | ||||||
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 | ||||||
Reinsurance premium paid to NICO under A&EP Loss Portfolio Transfer | 2,000 | ||||||
Net reinsurance receivables transferrred to NICO under A&EP Loss Portfolio Transfer | 215 | ||||||
Total consideration paid to NICO under A&EP Loss Portfolio Transfer | $ 2,200 | ||||||
Net AEP adverse development before consideration of LPT | 150 | $ 0 | 150 | $ 0 | $ 900 | ||
Cumulative amounts ceded under A&EP Loss Portfolio Transfer | 2,600 | 2,600 | $ 2,500 | ||||
Deferred reinsurance benefit yet to be recognized | 255 | 255 | 176 | ||||
Fair value of collateral trust account established by NICO under A&EP Loss Portfolio Transfer | $ 3,100 | $ 3,100 | $ 3,400 |
Claim and Claim Adjustment Ex44
Claim and Claim Adjustment Expense Reserves (Net prior year development) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development, excluding Life & Group | $ (5) | $ 24 | $ (12) | $ 49 |
Pretax (favorable) unfavorable premium development, excluding Life & Group | (15) | (2) | (6) | (33) |
Total pretax (favorable) unfavorable net prior year development, excluding Life & Group | (20) | 22 | (18) | 16 |
Specialty [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development, excluding Life & Group | (13) | (41) | (11) | (44) |
Pretax (favorable) unfavorable premium development, excluding Life & Group | (2) | (2) | (8) | (8) |
Total pretax (favorable) unfavorable net prior year development, excluding Life & Group | (15) | (43) | (19) | (52) |
Commercial [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development, excluding Life & Group | 16 | 90 | 11 | 108 |
Pretax (favorable) unfavorable premium development, excluding Life & Group | (11) | (6) | (12) | (24) |
Total pretax (favorable) unfavorable net prior year development, excluding Life & Group | 5 | 84 | (1) | 84 |
International [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development, excluding Life & Group | (8) | (25) | (12) | (15) |
Pretax (favorable) unfavorable premium development, excluding Life & Group | (2) | 6 | 14 | (1) |
Total pretax (favorable) unfavorable net prior year development, excluding Life & Group | (10) | (19) | 2 | (16) |
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 | 0 | 0 | 0 | 0 |
Pretax (favorable) unfavorable premium development, excluding Life & Group | 0 | 0 | 0 | 0 |
Total pretax (favorable) unfavorable net prior year development, excluding Life & Group | $ 0 | $ 0 | $ 0 | $ 0 |
Claim and Claim Adjustment Ex45
Claim and Claim Adjustment Expense Reserves (Net prior year claim and allocated claim adjustment expense reserve development for Specialty segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development, excluding Life & Group | $ (5) | $ 24 | $ (12) | $ 49 |
Specialty [Member] | ||||
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development, excluding Life & Group | (13) | (41) | (11) | (44) |
Medical Professional Liability | (6) | 1 | 8 | 1 |
Other Professional Liability and Management Liability | (1) | (44) | (4) | (50) |
Surety | 0 | 0 | 1 | 1 |
Warranty | 1 | 0 | 1 | 0 |
Other | $ (7) | $ 2 | $ (17) | $ 4 |
Claim and Claim Adjustment Ex46
Claim and Claim Adjustment Expense Reserves (Net prior year claim and allocated claim adjustment expense reserve development for Commercial segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development, excluding Life & Group | $ (5) | $ 24 | $ (12) | $ 49 |
Commercial [Member] | ||||
Commercial Auto | 7 | 19 | 7 | 39 |
General Liability | 1 | 32 | 5 | 32 |
Workers' Compensation | 24 | 39 | 23 | 50 |
Property and Other | (16) | 0 | (24) | (13) |
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development, excluding Life & Group | $ 16 | $ 90 | $ 11 | $ 108 |
Claim and Claim Adjustment Ex47
Claim and Claim Adjustment Expense Reserves Net prior year claim and allocated claim adjustment expense reserve development for International segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development, excluding Life & Group | $ (5) | $ 24 | $ (12) | $ 49 |
International [Member] | ||||
Medical Professional Liability | 0 | 0 | 0 | 1 |
Other Professional Liability | (5) | (14) | (5) | (15) |
Liability | (2) | (4) | (7) | (6) |
Property & Marine | (8) | (7) | (14) | 1 |
Other | 7 | 0 | 14 | (6) |
Commutations | 0 | 0 | 0 | 10 |
Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development, excluding Life & Group | $ (8) | $ (25) | $ (12) | $ (15) |
Claim and Claim Adjustment Ex48
Claim and Claim Adjustment Expense Reserves Impact of Loss Portfolio Transfer on the Consolidated Statement of Operations (Details) - Loss Portfolio Transfer [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 48 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2013 | |
Net AEP adverse development before consideration of LPT | $ 150 | $ 0 | $ 150 | $ 0 | $ 900 |
Provision for uncollectible third-party reinsurance on AEP | 0 | 0 | 0 | 0 | |
Additional amounts ceded under LPT | 150 | 0 | 150 | 0 | |
Retroactive reinsurance benefit recognized | (66) | (1) | (71) | (5) | |
Pretax impact of unrecognized deferred retroactive reinsurance benefit | $ 84 | $ (1) | $ 79 | $ (5) |
Benefit Plans (Components of ne
Benefit Plans (Components of net periodic cost (benefit)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Curtailment gain | $ (86) | |||
Pension Plans, Defined Benefit [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 2 | $ 1 | $ 4 | 4 |
Interest cost on projected benefit obligation | 28 | 33 | 56 | 66 |
Expected return on plan assets | (44) | (48) | (87) | (96) |
Amortization of net actuarial (gain) loss | 10 | 7 | 19 | 13 |
Net periodic (benefit) cost | (4) | (7) | (8) | (13) |
Other Postretirement Benefit Plans, Defined Benefit [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost on projected benefit obligation | 0 | 1 | 0 | 1 |
Amortization of net actuarial (gain) loss | 1 | 0 | 1 | 0 |
Amortization of prior service credit | (1) | (5) | (1) | (9) |
Curtailment gain | 0 | (86) | 0 | (86) |
Net periodic (benefit) cost | $ 0 | $ (90) | $ 0 | $ (94) |
Benefit Plans (Narrative) (Deta
Benefit Plans (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ||||
Defined Benefit Plan, Curtailments | $ 55 | |||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments | $ 86 | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.00% | 3.10% | 3.85% | 3.60% |
Commitments, Contingencies, a51
Commitments, Contingencies, and Guarantees (Narrative) (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Property Lease Guarantee [Member] | ||
Loss Contingencies [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 37 | |
Guarantee and indemnification agreements [Member] | ||
Loss Contingencies [Line Items] | ||
Guarantor Obligations, Current Carrying Value | 5 | $ 5 |
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 | 260 | |
Structured settlement annuities [Member] | ||
Loss Contingencies [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 2,000 |
Accumulated Other Comprehensi52
Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income (loss), beginning balance | $ 421 | $ 692 | $ 400 | $ 442 |
Transfer to net assets held for sale | 0 | |||
Other comprehensive income (loss), before reclassifications | (291) | 308 | (267) | 584 |
Amounts reclassified from accumulated other comprehensive income (loss) after tax (expense) benefit | (13) | 38 | (10) | 64 |
Other comprehensive income (loss) after tax (expense) benefit | (278) | 270 | (257) | 520 |
Accumulated other comprehensive income (loss), ending balance | 143 | 962 | 143 | 962 |
Tax (expense) benefit on amounts reclassified from accumulated other comprehensive income (loss) | 9 | (22) | 12 | (35) |
Tax (expense) benefit on other comprehensive income (loss) | 160 | (124) | 95 | (263) |
Net unrealized gains (losses) on investments with OTTI losses [Member) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income (loss), beginning balance | 35 | 33 | 36 | 26 |
Transfer to net assets held for sale | (5) | |||
Other comprehensive income (loss), before reclassifications | (4) | 2 | (5) | 14 |
Amounts reclassified from accumulated other comprehensive income (loss) after tax (expense) benefit | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) after tax (expense) benefit | (4) | 2 | (5) | 14 |
Accumulated other comprehensive income (loss), ending balance | 31 | 35 | 31 | 35 |
Tax (expense) benefit on amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Tax (expense) benefit on other comprehensive income (loss) | 2 | (1) | 2 | (7) |
Net unrealized gains (losses) on other investments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income (loss), beginning balance | 1,054 | 912 | 942 | 692 |
Transfer to net assets held for sale | (17) | |||
Other comprehensive income (loss), before reclassifications | (372) | 257 | (251) | 521 |
Amounts reclassified from accumulated other comprehensive income (loss) after tax (expense) benefit | (7) | (13) | 2 | 14 |
Other comprehensive income (loss) after tax (expense) benefit | (365) | 270 | (253) | 507 |
Accumulated other comprehensive income (loss), ending balance | 689 | 1,182 | 689 | 1,182 |
Tax (expense) benefit on amounts reclassified from accumulated other comprehensive income (loss) | 5 | 6 | 5 | (8) |
Tax (expense) benefit on other comprehensive income (loss) | 181 | (146) | 119 | (273) |
Accumulated Net Unrealized Gains Losses on discontinued operations [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income (loss), beginning balance | 30 | 0 | ||
Transfer to net assets held for sale | 22 | |||
Other comprehensive income (loss), before reclassifications | 7 | 15 | ||
Amounts reclassified from accumulated other comprehensive income (loss) after tax (expense) benefit | 0 | 0 | ||
Other comprehensive income (loss) after tax (expense) benefit | 7 | 15 | ||
Accumulated other comprehensive income (loss), ending balance | 37 | 37 | ||
Tax (expense) benefit on amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | ||
Tax (expense) benefit on other comprehensive income (loss) | (5) | (10) | ||
Pension and postretirement benefits [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income (loss), beginning balance | (627) | (425) | (633) | (426) |
Transfer to net assets held for sale | 0 | |||
Other comprehensive income (loss), before reclassifications | 36 | 0 | 36 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) after tax (expense) benefit | (6) | 51 | (12) | 50 |
Other comprehensive income (loss) after tax (expense) benefit | 42 | (51) | 48 | (50) |
Accumulated other comprehensive income (loss), ending balance | (585) | (476) | (585) | (476) |
Tax (expense) benefit on amounts reclassified from accumulated other comprehensive income (loss) | 4 | (28) | 7 | (27) |
Tax (expense) benefit on other comprehensive income (loss) | (23) | 28 | (26) | 27 |
Cumulative foreign currency translation adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income (loss), beginning balance | (41) | 142 | 55 | 150 |
Transfer to net assets held for sale | 0 | |||
Other comprehensive income (loss), before reclassifications | 49 | 42 | (47) | 34 |
Amounts reclassified from accumulated other comprehensive income (loss) after tax (expense) benefit | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) after tax (expense) benefit | 49 | 42 | (47) | 34 |
Accumulated other comprehensive income (loss), ending balance | 8 | 184 | 8 | 184 |
Tax (expense) benefit on amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Tax (expense) benefit on other comprehensive income (loss) | $ 0 | $ 0 | $ 0 | $ 0 |
Business Segments (Income State
Business Segments (Income Statement Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Operating Revenues | ||||
Net earned premiums | $ 1,735 | $ 1,811 | $ 3,422 | $ 3,617 |
Net investment income | 500 | 550 | 1,058 | 1,076 |
Other revenues | 92 | 93 | 189 | 178 |
Total operating revenues | 2,327 | 2,454 | 4,669 | 4,871 |
Claims, Benefits and Expenses | ||||
Net incurred claims and benefits | 1,466 | 1,437 | 2,801 | 2,880 |
Policyholders' dividends | 3 | 4 | 7 | 7 |
Amortization of deferred acquisition costs | 314 | 335 | 617 | 664 |
Other insurance related expenses | 259 | 259 | 527 | 521 |
Other expenses | 121 | 41 | 250 | 169 |
Total claims, benefits and expenses | 2,163 | 2,076 | 4,202 | 4,241 |
Operating income (loss) before income tax | 164 | 378 | 467 | 630 |
Income tax (expense) benefit on operating income (loss) | (32) | (106) | (110) | (168) |
Net operating income (loss) | 132 | 272 | 357 | 462 |
Net realized investment gains (losses), pre-tax | 0 | (14) | 10 | 32 |
Income tax (expense) benefit on net realized investment gains (losses) | 6 | 3 | 4 | (13) |
Net realized investment gains (losses), after tax | 6 | (11) | 14 | 19 |
Net income (loss) from continuing operations | 138 | 261 | 371 | 481 |
Specialty [Member] | ||||
Operating Revenues | ||||
Net earned premiums | 689 | 709 | 1,369 | 1,401 |
Net investment income | 134 | 153 | 289 | 297 |
Other revenues | 81 | 74 | 159 | 142 |
Total operating revenues | 904 | 936 | 1,817 | 1,840 |
Claims, Benefits and Expenses | ||||
Net incurred claims and benefits | 416 | 404 | 845 | 846 |
Policyholders' dividends | 1 | 1 | 2 | 2 |
Amortization of deferred acquisition costs | 146 | 148 | 290 | 291 |
Other insurance related expenses | 66 | 67 | 135 | 132 |
Other expenses | 69 | 65 | 136 | 126 |
Total claims, benefits and expenses | 698 | 685 | 1,408 | 1,397 |
Operating income (loss) before income tax | 206 | 251 | 409 | 443 |
Income tax (expense) benefit on operating income (loss) | (69) | (84) | (137) | (147) |
Net operating income (loss) | 137 | 167 | 272 | 296 |
Net realized investment gains (losses), pre-tax | 0 | (5) | 4 | 6 |
Income tax (expense) benefit on net realized investment gains (losses) | 0 | 1 | (1) | (2) |
Net realized investment gains (losses), after tax | 0 | (4) | 3 | 4 |
Net income (loss) from continuing operations | 137 | 163 | 275 | 300 |
Commercial [Member] | ||||
Operating Revenues | ||||
Net earned premiums | 703 | 732 | 1,381 | 1,467 |
Net investment income | 169 | 201 | 373 | 392 |
Other revenues | 9 | 8 | 18 | 18 |
Total operating revenues | 881 | 941 | 1,772 | 1,877 |
Claims, Benefits and Expenses | ||||
Net incurred claims and benefits | 507 | 610 | 961 | 1,178 |
Policyholders' dividends | 2 | 3 | 5 | 5 |
Amortization of deferred acquisition costs | 117 | 126 | 234 | 249 |
Other insurance related expenses | 130 | 125 | 257 | 251 |
Other expenses | 5 | 7 | 13 | 15 |
Total claims, benefits and expenses | 761 | 871 | 1,470 | 1,698 |
Operating income (loss) before income tax | 120 | 70 | 302 | 179 |
Income tax (expense) benefit on operating income (loss) | (42) | (21) | (104) | (56) |
Net operating income (loss) | 78 | 49 | 198 | 123 |
Net realized investment gains (losses), pre-tax | 2 | (5) | 6 | 5 |
Income tax (expense) benefit on net realized investment gains (losses) | 2 | (2) | (1) | (4) |
Net realized investment gains (losses), after tax | 4 | (7) | 5 | 1 |
Net income (loss) from continuing operations | 82 | 42 | 203 | 124 |
International [Member] | ||||
Operating Revenues | ||||
Net earned premiums | 207 | 231 | 398 | 472 |
Net investment income | 13 | 16 | 27 | 31 |
Other revenues | (1) | 0 | (1) | 0 |
Total operating revenues | 219 | 247 | 424 | 503 |
Claims, Benefits and Expenses | ||||
Net incurred claims and benefits | 114 | 118 | 230 | 248 |
Policyholders' dividends | 0 | 0 | 0 | 0 |
Amortization of deferred acquisition costs | 45 | 54 | 80 | 109 |
Other insurance related expenses | 31 | 36 | 68 | 76 |
Other expenses | (5) | 5 | 0 | 12 |
Total claims, benefits and expenses | 185 | 213 | 378 | 445 |
Operating income (loss) before income tax | 34 | 34 | 46 | 58 |
Income tax (expense) benefit on operating income (loss) | (12) | (14) | (15) | (22) |
Net operating income (loss) | 22 | 20 | 31 | 36 |
Net realized investment gains (losses), pre-tax | 1 | (3) | 2 | 0 |
Income tax (expense) benefit on net realized investment gains (losses) | (1) | 4 | (1) | 1 |
Net realized investment gains (losses), after tax | 0 | 1 | 1 | 1 |
Net income (loss) from continuing operations | 22 | 21 | 32 | 37 |
Life and Group Non-Core [Member] | ||||
Operating Revenues | ||||
Net earned premiums | 137 | 139 | 275 | 278 |
Net investment income | 179 | 173 | 358 | 344 |
Other revenues | 0 | 8 | 9 | 13 |
Total operating revenues | 316 | 320 | 642 | 635 |
Claims, Benefits and Expenses | ||||
Net incurred claims and benefits | 344 | 304 | 684 | 610 |
Policyholders' dividends | 0 | 0 | 0 | 0 |
Amortization of deferred acquisition costs | 6 | 7 | 13 | 15 |
Other insurance related expenses | 34 | 31 | 69 | 63 |
Other expenses | 5 | (3) | 9 | (2) |
Total claims, benefits and expenses | 389 | 339 | 775 | 686 |
Operating income (loss) before income tax | (73) | (19) | (133) | (51) |
Income tax (expense) benefit on operating income (loss) | 49 | 28 | 92 | 58 |
Net operating income (loss) | (24) | 9 | (41) | 7 |
Net realized investment gains (losses), pre-tax | (5) | (4) | (4) | 12 |
Income tax (expense) benefit on net realized investment gains (losses) | 6 | 1 | 8 | (5) |
Net realized investment gains (losses), after tax | 1 | (3) | 4 | 7 |
Net income (loss) from continuing operations | (23) | 6 | (37) | 14 |
Corporate and Other Non-Core [Member] | ||||
Operating Revenues | ||||
Net earned premiums | 0 | 0 | 0 | 0 |
Net investment income | 5 | 7 | 11 | 12 |
Other revenues | 3 | 5 | 5 | 7 |
Total operating revenues | 8 | 12 | 16 | 19 |
Claims, Benefits and Expenses | ||||
Net incurred claims and benefits | 85 | 1 | 81 | (2) |
Policyholders' dividends | 0 | 0 | 0 | 0 |
Amortization of deferred acquisition costs | 0 | 0 | 0 | 0 |
Other insurance related expenses | (1) | 0 | (1) | 0 |
Other expenses | 47 | (31) | 93 | 20 |
Total claims, benefits and expenses | 131 | (30) | 173 | 18 |
Operating income (loss) before income tax | (123) | 42 | (157) | 1 |
Income tax (expense) benefit on operating income (loss) | 42 | (15) | 54 | (1) |
Net operating income (loss) | (81) | 27 | (103) | 0 |
Net realized investment gains (losses), pre-tax | 2 | 3 | 2 | 9 |
Income tax (expense) benefit on net realized investment gains (losses) | (1) | (1) | (1) | (3) |
Net realized investment gains (losses), after tax | 1 | 2 | 1 | 6 |
Net income (loss) from continuing operations | (80) | 29 | (102) | 6 |
Eliminations [Member] | ||||
Operating Revenues | ||||
Net earned premiums | (1) | 0 | (1) | (1) |
Net investment income | 0 | 0 | 0 | 0 |
Other revenues | 0 | (2) | (1) | (2) |
Total operating revenues | (1) | (2) | (2) | (3) |
Claims, Benefits and Expenses | ||||
Net incurred claims and benefits | 0 | 0 | 0 | 0 |
Policyholders' dividends | 0 | 0 | 0 | 0 |
Amortization of deferred acquisition costs | 0 | 0 | 0 | 0 |
Other insurance related expenses | (1) | 0 | (1) | (1) |
Other expenses | 0 | (2) | (1) | (2) |
Total claims, benefits and expenses | (1) | (2) | (2) | (3) |
Operating income (loss) before income tax | 0 | 0 | 0 | 0 |
Income tax (expense) benefit on operating income (loss) | 0 | 0 | 0 | 0 |
Net operating income (loss) | 0 | 0 | 0 | 0 |
Net realized investment gains (losses), pre-tax | 0 | 0 | 0 | 0 |
Income tax (expense) benefit on net realized investment gains (losses) | 0 | 0 | 0 | 0 |
Net realized investment gains (losses), after tax | 0 | 0 | 0 | 0 |
Net income (loss) from continuing operations | $ 0 | $ 0 | $ 0 | $ 0 |
Business Segments (Balance Shee
Business Segments (Balance Sheet Information) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Reinsurance receivables | $ 4,702 | $ 4,742 |
Insurance receivables | 2,245 | 1,997 |
Deferred acquisition costs | 621 | 600 |
Goodwill | 153 | 152 |
Insurance reserves | ||
Claim and claim adjustment expenses | 23,193 | 23,271 |
Unearned premiums | 3,815 | 3,592 |
Future policy benefits | 9,360 | 9,490 |
Policyholders’ funds | 0 | 27 |
Specialty [Member] | ||
Segment Reporting Information [Line Items] | ||
Reinsurance receivables | 697 | 567 |
Insurance receivables | 862 | 778 |
Deferred acquisition costs | 306 | 304 |
Goodwill | 117 | 117 |
Insurance reserves | ||
Claim and claim adjustment expenses | 6,365 | 6,229 |
Unearned premiums | 1,794 | 1,763 |
Future policy benefits | 0 | 0 |
Policyholders’ funds | 9 | |
Commercial [Member] | ||
Segment Reporting Information [Line Items] | ||
Reinsurance receivables | 660 | 690 |
Insurance receivables | 1,068 | 954 |
Deferred acquisition costs | 224 | 213 |
Goodwill | 0 | 0 |
Insurance reserves | ||
Claim and claim adjustment expenses | 9,391 | 9,514 |
Unearned premiums | 1,384 | 1,273 |
Future policy benefits | 0 | 0 |
Policyholders’ funds | 18 | |
International [Member] | ||
Segment Reporting Information [Line Items] | ||
Reinsurance receivables | 192 | 207 |
Insurance receivables | 302 | 250 |
Deferred acquisition costs | 91 | 83 |
Goodwill | 36 | 35 |
Insurance reserves | ||
Claim and claim adjustment expenses | 1,401 | 1,441 |
Unearned premiums | 506 | 431 |
Future policy benefits | 0 | 0 |
Policyholders’ funds | 0 | |
Life and Group Non-Core [Member] | ||
Segment Reporting Information [Line Items] | ||
Reinsurance receivables | 534 | 525 |
Insurance receivables | 10 | 13 |
Deferred acquisition costs | 0 | 0 |
Goodwill | 0 | 0 |
Insurance reserves | ||
Claim and claim adjustment expenses | 3,248 | 3,183 |
Unearned premiums | 132 | 125 |
Future policy benefits | 9,360 | 9,490 |
Policyholders’ funds | 0 | |
Corporate and Other Non-Core [Member] | ||
Segment Reporting Information [Line Items] | ||
Reinsurance receivables | 2,619 | 2,753 |
Insurance receivables | 3 | 2 |
Deferred acquisition costs | 0 | 0 |
Goodwill | 0 | 0 |
Insurance reserves | ||
Claim and claim adjustment expenses | 2,788 | 2,904 |
Unearned premiums | 0 | 0 |
Future policy benefits | 0 | 0 |
Policyholders’ funds | 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 | (1) | 0 |
Future policy benefits | $ 0 | 0 |
Policyholders’ funds | $ 0 |
Business Segments (Revenues by
Business Segments (Revenues by Line of Business) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenues | $ 2,327 | $ 2,440 | $ 4,679 | $ 4,903 |
Specialty [Domain] | ||||
Revenues | 904 | 931 | 1,821 | 1,846 |
Management & Professional Liability [Member] | ||||
Revenues | 674 | 710 | 1,371 | 1,414 |
Surety [Member] | ||||
Revenues | 125 | 125 | 245 | 247 |
Warranty & Alternative Risks [Member] | ||||
Revenues | 105 | 96 | 205 | 185 |
Commercial [Domain] | ||||
Revenues | 883 | 936 | 1,778 | 1,882 |
Middle Markets [Member] | ||||
Revenues | 412 | 412 | 821 | 815 |
Small Business [Member] | ||||
Revenues | 158 | 181 | 323 | 365 |
Other Commercial Insurance [Member] | ||||
Revenues | 313 | 343 | 634 | 702 |
International [Domain] | ||||
Revenues | 220 | 244 | 426 | 503 |
Canada [Member] | ||||
Revenues | 54 | 70 | 109 | 141 |
CNA Europe [Member] | ||||
Revenues | 77 | 83 | 154 | 171 |
Hardy [Member] | ||||
Revenues | 89 | 91 | 163 | 191 |
Life & Group Non-Core [Domain] | ||||
Revenues | 311 | 316 | 638 | 647 |
Corporate and Other [Domain] | ||||
Revenues | 10 | 15 | 18 | 28 |
Intersegment Eliminations [Domain] | ||||
Revenues | $ (1) | $ (2) | $ (2) | $ (3) |
Discontinued Operations Income
Discontinued Operations Income Statement Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenues | ||||
Net Investment Income | $ 39 | $ 80 | ||
Net Realized Investment Gains (Losses) | 1 | 2 | ||
Total Revenues | 40 | 82 | ||
Claims, Benefits and Expenses | ||||
Insurance Claims and Policyholders' Benefits | 32 | 63 | ||
Other Operating Expenses | 1 | 2 | ||
Total Claims, Benefits and Expenses | 33 | 65 | ||
Income before Income Tax | 7 | 17 | ||
Income tax (expense) benefit | (1) | (4) | ||
Income from operations of discontinued operations, net of income tax | 6 | 13 | ||
Impairment loss on sale, net of income tax benefit | 0 | (214) | ||
Income (Loss) from Discontinued Operations | $ 0 | 6 | $ 0 | (201) |
Income tax benefit (expense) on impairment | $ 0 | $ 41 |