Cover Page Cover Page
Cover Page Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 07, 2020 | Jun. 28, 2019 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 1-5823 | ||
Entity Registrant Name | CNA FINANCIAL CORPORATION | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 36-6169860 | ||
Entity Address, Address Line One | 151 N. Franklin | ||
Entity Address, Postal Zip Code | 60606 | ||
Entity Address, City or Town | Chicago, | ||
Entity Address, State or Province | IL | ||
City Area Code | 312 | ||
Local Phone Number | 822-5000 | ||
Title of 12(b) Security | Common Stock, Par value $2.50 | ||
Trading Symbol | "CNA" | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding (in shares) | 271,412,591 | ||
Entity Public Float | $ 1,338 | ||
Documents Incorporated by Reference | Portions of the CNA Financial Corporation Proxy Statement prepared for the 2020 annual meeting of shareholders, pursuant to Regulation 14A, are incorporated by reference into Part III of this report. | ||
Entity Central Index Key | 0000021175 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
New York Stock Exchange | |||
Entity Information [Line Items] | |||
Security Exchange Name | NYSE | ||
Chicago Stock Exchange | |||
Entity Information [Line Items] | |||
Security Exchange Name | CHX |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | |||
Net earned premiums | $ 7,428 | $ 7,312 | $ 6,988 |
Net investment income | 2,118 | 1,817 | 2,034 |
Net investment gains (losses): | |||
Other-than-temporary impairment losses | (44) | (21) | (14) |
Other net investment gains (losses) | 73 | (31) | 107 |
Net investment gains (losses) | 29 | (52) | 93 |
Non-insurance warranty revenue | 1,161 | 1,007 | 390 |
Other revenues | 31 | 50 | 37 |
Total revenues | 10,767 | 10,134 | 9,542 |
Claims, Benefits and Expenses | |||
Insurance claims and policyholders’ benefits | 5,806 | 5,572 | 5,310 |
Amortization of deferred acquisition costs | 1,383 | 1,335 | 1,233 |
Non-insurance warranty expense | 1,082 | 923 | 299 |
Other operating expenses | 1,142 | 1,202 | 1,229 |
Interest | 131 | 138 | 161 |
Total claims, benefits and expenses | 9,544 | 9,170 | 8,232 |
Income before income tax | 1,223 | 964 | 1,310 |
Income tax expense | (223) | (151) | (411) |
Net income | $ 1,000 | $ 813 | $ 899 |
Basic earnings per share | |||
Basic earnings per share (in usd per share) | $ 3.68 | $ 2.99 | $ 3.32 |
Diluted earnings per share | |||
Diluted earnings per share (in usd per share) | $ 3.67 | $ 2.98 | $ 3.30 |
Weighted Average Outstanding Common Stock and Common Stock Equivalents | |||
Basic (in shares) | 271.6 | 271.5 | 271.1 |
Diluted (in shares) | 272.5 | 272.5 | 272.1 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net income | $ 1,000 | $ 813 | $ 899 |
Other Comprehensive Income (Loss), net of tax | |||
Net unrealized gains on investments | 948 | (812) | 103 |
Foreign currency translation adjustment | 39 | (82) | 100 |
Pension and postretirement benefits | (58) | 0 | 2 |
Other comprehensive income (loss), net of tax | 929 | (894) | 205 |
Total comprehensive income (loss) | 1,929 | (81) | 1,104 |
Net unrealized gains on investments with other-than-temporary impairments | |||
Other Comprehensive Income (Loss), net of tax | |||
Net unrealized gains on investments | 1 | 14 | 5 |
Net unrealized gains on other investments | |||
Other Comprehensive Income (Loss), net of tax | |||
Net unrealized gains on investments | $ 949 | $ (798) | $ 108 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Investments: | ||
Fixed maturity securities at fair value (amortized cost of $38,126 and $38,085) | $ 42,207 | $ 39,546 |
Equity securities at fair value (cost of $820 and $844) | 865 | 780 |
Limited partnership investments | 1,752 | 1,982 |
Other invested assets | 65 | 53 |
Mortgage loans | 994 | 839 |
Short term investments | 1,861 | 1,286 |
Total investments | 47,744 | 44,486 |
Cash | 242 | 310 |
Reinsurance receivables (less allowance for uncollectible receivables of $25 and $29) | 4,179 | 4,426 |
Insurance receivables (less allowance for uncollectible receivables of $32 and $42) | 2,449 | 2,323 |
Accrued investment income | 395 | 391 |
Deferred acquisition costs | 662 | 633 |
Deferred income taxes | 199 | 392 |
Property and equipment at cost (less accumulated depreciation of $215 and $216) | 282 | 324 |
Goodwill | 147 | 146 |
Deferred non-insurance warranty acquisition expense | 2,840 | 2,513 |
Other assets (includes $21 and $8 due from Loews Corporation) | 1,473 | 1,208 |
Total assets | 60,612 | 57,152 |
Insurance reserves: | ||
Claim and claim adjustment expenses | 21,720 | 21,984 |
Unearned premiums | 4,583 | 4,183 |
Future policy benefits | 12,311 | 10,597 |
Long term debt | 2,679 | 2,680 |
Deferred non-insurance warranty revenue | 3,779 | 3,402 |
Other liabilities (includes $21 and $23 due to Loews Corporation) | 3,325 | 3,089 |
Total liabilities | 48,397 | 45,935 |
Commitments and contingencies (Notes B and F) | ||
Stockholders' Equity | ||
Common stock ($2.50 par value; 500,000,000 shares authorized; 273,040,243 shares issued; 271,412,591 and 271,456,978 shares outstanding) | 683 | 683 |
Additional paid-in capital | 2,203 | 2,192 |
Retained earnings | 9,348 | 9,277 |
Accumulated other comprehensive income (loss) | 51 | (878) |
Treasury stock (1,627,652 and 1,583,265 shares), at cost | (70) | (57) |
Total stockholders’ equity | 12,215 | 11,217 |
Total liabilities and stockholders' equity | $ 60,612 | $ 57,152 |
Consolidated Balance Sheets - (
Consolidated Balance Sheets - (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Fixed maturities securities at amortized cost | $ 38,126 | $ 38,085 |
Equity securities at cost | 820 | 844 |
Allowance for uncollectible reinsurance | 25 | 29 |
Allowance for uncollectible insurance receivables | 32 | 42 |
Accumulated depreciation on property and equipment | 215 | 216 |
Due to related parties | 21 | 23 |
Due from related parties | $ 21 | $ 8 |
Common stock, par value (in usd per share) | $ 2.50 | $ 2.50 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 273,040,243 | 273,040,243 |
Common stock, shares outstanding (in shares) | 271,412,591 | 271,456,978 |
Treasury stock, shares (in shares) | 1,627,652 | 1,583,265 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities | |||
Net income | $ 1,000 | $ 813 | $ 899 |
Adjustments to reconcile net income to net cash flows provided by operating activities: | |||
Deferred Income Tax Expense (Benefit) | (46) | (20) | 168 |
Trading portfolio activity | (16) | 0 | 9 |
Net investment (gains) losses | (29) | 52 | (93) |
Equity method investees | 11 | 330 | 84 |
Net amortization of investments | (89) | (70) | (40) |
Depreciation and amortization | 68 | 79 | 88 |
Changes in: | |||
Receivables, net | 137 | (229) | 92 |
Accrued investment income | (3) | 19 | (4) |
Deferred acquisition costs | (26) | (6) | (24) |
Insurance reserves | 358 | 482 | 22 |
Other, net | (225) | (223) | 53 |
Net cash flows provided by operating activities | 1,140 | 1,227 | 1,254 |
Dispositions: | |||
Fixed maturity securities - sales | 5,842 | 8,408 | 5,438 |
Fixed maturity securities - maturities, calls and redemptions | 2,997 | 2,370 | 3,641 |
Equity securities | 214 | 89 | 46 |
Limited partnerships | 479 | 343 | 192 |
Mortgage loans | 143 | 128 | 26 |
Purchases: | |||
Fixed maturity securities | (8,661) | (10,785) | (9,065) |
Equity securities | (186) | (258) | (166) |
Limited partnerships | (198) | (419) | (171) |
Mortgage loans | (298) | (128) | (274) |
Change in other investments | (11) | (12) | (3) |
Change in short term investments | (535) | 168 | (6) |
Purchases of property and equipment | (26) | (99) | (102) |
Other, net | 15 | 18 | 20 |
Net cash flows used by investing activities | (225) | (177) | (424) |
Cash Flows from Financing Activities | |||
Dividends paid to common stockholders | (929) | (896) | (842) |
Proceeds from the issuance of debt | 496 | 0 | 496 |
Repayment of debt | (520) | (180) | (391) |
Purchase of treasury stock | (23) | 0 | 0 |
Other, net | (12) | (9) | (18) |
Net cash flows used by financing activities | (988) | (1,085) | (755) |
Effect of foreign exchange rate changes on cash | 5 | (10) | 9 |
Net change in cash | (68) | (45) | 84 |
Cash, beginning of year | 310 | 355 | 271 |
Cash, end of period | $ 242 | $ 310 | $ 355 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Previously ReportedRetained Earnings | Previously ReportedAccumulated Other Comprehensive Income (Loss) |
Total stockholder's equity at beginning of period at Dec. 31, 2016 | $ 683 | $ 2,173 | $ (73) | $ 9,359 | $ (173) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock-based compensation | 2 | 13 | ||||||
Dividends to common stockholders ($3.40, $3.30, and $3.10 per share) | $ (844) | |||||||
Net income | $ 899 | 899 | ||||||
Other comprehensive income (loss) | 205 | $ 205 | ||||||
Total stockholder's equity at end of period at Dec. 31, 2017 | 12,244 | 683 | 2,175 | 9,414 | 32 | (60) | 9,414 | 32 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock-based compensation | 17 | 3 | ||||||
Dividends to common stockholders ($3.40, $3.30, and $3.10 per share) | (900) | |||||||
Net income | 813 | 813 | ||||||
Other comprehensive income (loss) | (894) | (894) | ||||||
Total stockholder's equity at end of period at Dec. 31, 2018 | 11,217 | 683 | 2,192 | 9,277 | (878) | (57) | $ 9,277 | $ (878) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock-based compensation | 11 | 10 | ||||||
Dividends to common stockholders ($3.40, $3.30, and $3.10 per share) | (929) | |||||||
Net income | 1,000 | 1,000 | ||||||
Other comprehensive income (loss) | 929 | 929 | ||||||
Purchase of treasury stock | (23) | |||||||
Total stockholder's equity at end of period at Dec. 31, 2019 | $ 12,215 | $ 683 | $ 2,203 | $ 9,348 | $ 51 | $ (70) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity - (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared per share (usd per share) | $ 3.40 | $ 3.30 | $ 3.10 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The Consolidated Financial Statements include the accounts of CNA Financial Corporation (CNAF) and its subsidiaries. Collectively, CNAF and its subsidiaries are referred to as CNA or the Company. Loews Corporation (Loews) owned approximately 89% of the outstanding common stock of CNAF as of December 31, 2019 . The accompanying Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). Intercompany amounts have been eliminated. The preparation of Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates. Recently Adopted Accounting Standards Updates (ASU) ASU 2016-02: In February 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-02, Leases (Topic 842): Accounting for Leases. The updated accounting guidance requires lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by the majority of leases, including those historically accounted for as operating leases. On January 1, 2019, the Company adopted the updated guidance using a modified retrospective method. Prior period amounts have not been adjusted and continue to be reported in accordance with the previous accounting guidance. The Company utilized the permitted package of practical expedients allowing the Company to not reassess whether a contract is or contains a lease, lease classification and initial direct costs. The Company also utilized the permitted practical expedient to not separate lease and non-lease components for all leases. Adoption of the updated guidance resulted in the following changes to the Consolidated Balance Sheets on January 1, 2019: (In millions) Balance as of December 31, 2018 Adjustments Due to Adoption of Topic 842 Balance as of January 1, 2019 Property and equipment at cost (less accumulated depreciation) $ 324 $ 2 $ 326 Other assets 1,208 237 1,445 Other liabilities 3,089 239 3,328 As of January 1, 2019 , operating lease right-of-use (ROU) assets, included within Other assets, were reduced by accrued rent and lease incentives of $75 million previously classified as Other liabilities. The updated guidance did not impact the Consolidated Statements of Operations. See Note L to the Consolidated Financial Statements for additional information regarding leases. ASU 2014-09: In May 2014, the FASB issued ASU No. 2014-09, Revenue Recognition (Topic 606) : Revenue from Contracts with Customers . The standard excludes from its scope the accounting for insurance contracts, financial instruments, and certain other agreements that are governed under other GAAP guidance, but the standard does apply to certain of the Company's warranty products and services. The updated guidance requires an entity to recognize revenue as performance obligations are met, in an amount that reflects the consideration the entity is entitled to receive for the transfer of the promised goods or services. On January 1, 2018, the Company adopted the updated guidance using the modified retrospective method applied to all contracts which were not completed as of the date of adoption, with the cumulative effect recognized as an adjustment to the opening balance of Retained earnings. Prior period amounts have not been adjusted and continue to be reported in accordance with the previous accounting guidance. Under the new guidance, revenue on warranty products and services is recognized more slowly as compared to the historic revenue recognition pattern. In addition, for warranty products where the Company acts as the principal in the transaction, Non-insurance warranty revenue and Non-insurance warranty expense are increased to reflect the gross amount paid by consumers, including the retail seller’s markup which is considered a commission to the Company's agent. This gross-up of revenue and expense also resulted in an increase to Deferred non-insurance warranty acquisition expense and Deferred non-insurance warranty revenue on the Company's Consolidated Balance Sheets as the revenue and expense are recognized over the actuarially determined expected claims emergence pattern. The cumulative effect changes to the Consolidated Balance Sheet for the adoption of the updated guidance on January 1, 2018 were as follows: (In millions) Balance as of December 31, 2017 Adjustments Due to Adoption of Topic 606 Balance as of January 1, 2018 Deferred non-insurance warranty acquisition expense $ 212 $ 1,882 $ 2,094 Deferred non-insurance warranty revenue 972 1,969 2,941 Deferred income taxes 137 21 158 Retained earnings 9,414 (66 ) 9,348 The impact of adoption on the Consolidated Statements of Operations and Balance Sheet was as follows: Year ended December 31, 2018 Prior to Adoption Effect of Adoption As Reported (In millions) Statement of operations: Non-insurance warranty revenue $ 420 $ 587 $ 1,007 Total revenues 9,547 587 10,134 Non-insurance warranty expense 328 595 923 Total claims, benefits and expenses 8,575 595 9,170 Income before income tax 972 (8 ) 964 Income tax expense (153 ) 2 (151 ) Net income 819 (6 ) 813 Balance sheet (1) at December 31, 2018: Deferred non-insurance warranty acquisition expense $ 2,116 $ 397 $ 2,513 Deferred non-insurance warranty revenue 2,997 405 3,402 Deferred income taxes 390 2 392 Retained earnings 9,283 (6 ) 9,277 (1) The Prior to Adoption amounts presented in this table include the cumulative effect adjustment at adoption presented in the prior table. See Note R to the Consolidated Financial Statements for additional information regarding non-insurance revenues from contracts with customers. ASU 2016-01: In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . The updated accounting guidance requires changes to the reporting model for financial instruments. The guidance primarily changes the model for equity securities by requiring changes in the fair value of equity securities (except those accounted for under the equity method of accounting, those without readily determinable fair values and those that result in consolidation of the investee) to be recognized through the income statement. The Company adopted the updated guidance on January 1, 2018 and recognized a cumulative effect adjustment that increased beginning Retained earnings by $28 million , net of tax. Prior period amounts have not been adjusted and continue to be reported in accordance with the previous accounting guidance. For the year ended December 31, 2017, there was a $32 million increase in the fair value of non-redeemable preferred stock and a less than $1 million increase in the fair value of common stock, both recognized in Other comprehensive income. Accounting Standards Pending Adoption In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The updated accounting guidance requires changes to the recognition of credit losses on financial instruments not accounted for at fair value through the Company’s results of operations. The expected credit loss model will require a financial asset to be presented at the net amount expected to be collected and applies to the mortgage loan portfolio, reinsurance and insurance receivables and other financing receivables. Under the new guidance, the Other-than-temporary impairment (OTTI) concept has been eliminated for available-for-sale fixed maturity securities, and expected credit losses are recognized immediately in earnings through an allowance, rather than as a reduction of amortized cost. This will allow the Company to record reversals of credit losses if the estimate of credit losses declines. For available-for-sale fixed maturity securities with an intent to sell, impairment will continue to result in a write-down of amortized cost. The guidance is effective for interim and annual periods beginning after December 15, 2019. The expected credit loss model will be applied using a modified retrospective approach with the cumulative effect recognized as an adjustment to retained earnings. A prospective transition approach is required for available-for-sale debt securities that were purchased with credit deterioration or have recognized an OTTI write-down prior to the effective date. The Company has evaluated the effect the guidance will have on its financial statements and determined that the impact at the date of adoption will not be material. In August 2018, the FASB issued ASU 2018-12, Financial Services-Insurance (Topic 944): Targeted Improvements to the Accounting for Long Duration Contracts . The updated accounting guidance requires changes to the measurement and disclosure of long-duration contracts. The guidance requires entities to annually update cash flow assumptions, including morbidity and persistency, and update discount rate assumptions quarterly using an upper-medium grade fixed-income instrument yield. The effect of changes in cash flow assumptions will be recorded in the Company's results of operations and the effect of changes in discount rate assumptions will be recorded in Other comprehensive income. This guidance is effective for interim and annual periods beginning after December 15, 2021, and the Company will adopt it on that effective date. The guidance requires restatement of prior periods presented. The Company is currently evaluating the method of adoption and the effect the updated guidance will have on its financial statements, including the increased disclosure requirements. The annual updating of cash flow assumptions is expected to increase income statement volatility. The quarterly change in discount rate is expected to increase volatility in the Company’s stockholders' equity, but that will be somewhat mitigated because Shadow Adjustments are eliminated under the new guidance. While the requirements of the new guidance represent a material change from existing GAAP, the underlying economics of the business and related cash flows are unchanged. Insurance Operations Premiums: Insurance premiums on property and casualty insurance contracts are recognized in proportion to the underlying risk insured and are principally earned ratably over the term of the policies. Premiums on long term care contracts are earned ratably over the policy year in which they are due. The reserve for unearned premiums represents the portion of premiums written relating to the unexpired terms of coverage. Insurance receivables include balances due currently or in the future, including amounts due from insureds related to paid losses under high deductible policies, and are presented at unpaid balances, net of an allowance for uncollectible receivables. Amounts are considered past due based on policy payment terms. The allowance is determined based on periodic evaluations of aged receivables, historical business default data, management's experience and current economic conditions. Insurance receivables and any related allowance are written off after collection efforts are exhausted or a negotiated settlement is reached. Property and casualty contracts that are retrospectively rated contain provisions that result in an adjustment to the initial policy premium depending on the contract provisions and loss experience of the insured during the experience period. For such contracts, the Company estimates the amount of ultimate premiums that the Company may earn upon completion of the experience period and recognizes either an asset or a liability for the difference between the initial policy premium and the estimated ultimate premium. The Company adjusts such estimated ultimate premium amounts during the course of the experience period based on actual results to date. The resulting adjustment is recorded as either a reduction of or an increase to the earned premiums for the period. Claim and claim adjustment expense reserves: Claim and claim adjustment expense reserves, except reserves for structured settlements not associated with A&EP, workers' compensation lifetime claims and long term care claims, are not discounted and are based on i) case basis estimates for losses reported on direct business, adjusted in the aggregate for ultimate loss expectations; ii) estimates of incurred but not reported (IBNR) losses; iii) estimates of losses on assumed reinsurance; iv) estimates of future expenses to be incurred in the settlement of claims; v) estimates of salvage and subrogation recoveries and vi) estimates of amounts due from insureds related to losses under high deductible policies. Management considers current conditions and trends as well as past Company and industry experience in establishing these estimates. The effects of inflation, which can be significant, are implicitly considered in the reserving process and are part of the recorded reserve balance. Ceded claim and claim adjustment expense reserves are reported as a component of Reinsurance receivables on the Consolidated Balance Sheets. Claim and claim adjustment expense reserves are presented net of anticipated amounts due from insureds related to losses under deductible policies of $1.2 billion as of December 31, 2019 and 2018 . A significant portion of these amounts are supported by collateral. The Company has an allowance for uncollectible deductible amounts, which is presented as a component of the allowance for doubtful accounts included in Insurance receivables on the Consolidated Balance Sheets. Structured settlements have been negotiated for certain property and casualty insurance claims. Structured settlements are agreements to provide fixed periodic payments to claimants. The Company's obligations for structured settlements not funded by annuities are included in claim and claim adjustment expense reserves and carried at present values determined using interest rates ranging from 5.5% to 7.6% and 5.5% to 8.0% as of December 31, 2019 and 2018 . As of December 31, 2019 and 2018 , the discounted reserves for unfunded structured settlements were $497 million and $512 million , net of discount of $724 million and $760 million . For the years ended December 31, 2019 , 2018 and 2017 , the amount of interest recognized on the discounted reserves of unfunded structured settlements was $36 million , $40 million and $41 million , respectively. This interest accretion is presented as a component of Insurance claims and policyholders’ benefits on the Consolidated Statements of Operations, but is excluded from the Company’s disclosure of prior year loss reserve development. Workers' compensation lifetime claim reserves are calculated using mortality assumptions determined through statutory regulation and economic factors. At December 31, 2019 and 2018 , workers' compensation lifetime claim reserves are discounted at a 3.5% interest rate. As of December 31, 2019 and 2018 , the discounted reserves for workers’ compensation lifetime claim reserves were $293 million and $343 million , net of discount of $135 million and $168 million . For the years ended December 31, 2019 , 2018 and 2017 , the amount of interest accretion recognized on the discounted reserves of workers’ compensation lifetime claim reserves was $21 million , $16 million and $19 million , respectively. This interest accretion is presented as a component of Insurance claims and policyholders' benefits on the Consolidated Statements of Operations, but is excluded from the Company's disclosure of prior year loss reserve development. Long term care claim reserves are calculated using mortality and morbidity assumptions based on Company and industry experience. Long term care claim reserves are discounted at a weighted average interest rate of 5.9% and 6.0% as of December 31, 2019 and 2018 . As of December 31, 2019 and 2018 , such discounted reserves totaled $2.7 billion and $2.6 billion , net of discount of $462 million and $460 million . Future policy benefit reserves: Future policy benefit reserves represent the active life reserves related to the Company's long term care policies and are computed using the net level premium method, which incorporates actuarial assumptions as to morbidity, persistency, inclusive of mortality, discount rate, future premium rate adjustments and expenses. Expense assumptions primarily relate to claim adjudication. These assumptions are locked in over the life of the policy; however if a premium deficiency emerges, the assumptions are unlocked and the future policy benefit reserves are increased. The September 30, 2019 gross premium valuation (GPV) indicated a premium deficiency of $216 million and future policy benefit reserves at that date were increased accordingly. As a result, the long term care active life reserves carried as of September 30, 2019 represent management’s best estimate assumptions at that date with no margin for adverse deviation. Long term care active life reserves are discounted at a weighted average interest rate of 5.7% and 6.9% as of December 31, 2019 and 2018 . In circumstances where the cash flow projections supporting future policy benefit reserves are expected to result in profits being recognized in early future years followed by losses in later future years, the future policy benefit reserves are increased in the future profitable years by an amount necessary to offset losses that are projected to be recognized in later future years. The amount of the additional future policy benefit reserves recorded in each period is determined by applying the ratio of the present value of future losses divided by the present value of future profits from the most recently completed GPV to long term care core income in that period. Insurance-related assessments: Liabilities for insurance-related assessments are accrued when an assessment is probable, when it can be reasonably estimated and when the event obligating the entity to pay an imposed or probable assessment has occurred. Liabilities for insurance-related assessments are not discounted and are included as part of Other liabilities on the Consolidated Balance Sheets. As of December 31, 2019 and 2018 , the liability balances were $84 million and $108 million . Reinsurance: Reinsurance accounting allows for contractual cash flows to be reflected as premiums and losses. To qualify for reinsurance accounting, reinsurance agreements must include risk transfer. To meet risk transfer requirements, a reinsurance contract must include both insurance risk, consisting of underwriting and timing risk, and a reasonable possibility of a significant loss for the assuming entity. Reinsurance receivables related to paid losses are presented at unpaid balances. Reinsurance receivables related to unpaid losses are estimated in a manner consistent with claim and claim adjustment expense reserves or future policy benefit reserves. Reinsurance receivables are reported net of an allowance for uncollectible amounts on the Consolidated Balance Sheets. The cost of reinsurance is primarily accounted for over the life of the underlying reinsured policies using assumptions consistent with those used to account for the underlying policies or over the reinsurance contract period. The ceding of insurance does not discharge the primary liability of the Company. The Company has established an allowance for uncollectible reinsurance receivables which relates to both amounts already billed on ceded paid losses as well as ceded reserves that will be billed when losses are paid in the future. The allowance for uncollectible reinsurance receivables is estimated on the basis of periodic evaluations of balances due from reinsurers, reinsurer solvency, industry experience and current economic conditions. Reinsurer financial strength ratings are updated and reviewed on an annual basis or sooner if the Company becomes aware of significant changes related to a reinsurer. Because billed receivables generally approximate 5% or less of total reinsurance receivables, the age of the reinsurance receivables related to paid losses is not a significant input into the allowance analysis. Changes in the allowance for uncollectible reinsurance receivables are presented as a component of Insurance claims and policyholders' benefits on the Consolidated Statements of Operations. Amounts are considered past due based on the reinsurance contract terms. Reinsurance receivables related to paid losses and any related allowance are written off after collection efforts have been exhausted or a negotiated settlement is reached with the reinsurer. Reinsurance receivables from insolvent insurers related to paid losses are written off when the settlement due from the estate can be reasonably estimated. At the time reinsurance receivables related to paid losses are written off, any required adjustment to reinsurance receivables related to unpaid losses is recorded as a component of Insurance claims and policyholders' benefits on the Consolidated Statements of Operations. A loss portfolio transfer is a retroactive reinsurance contract. If the cumulative claim and allocated claim adjustment expenses ceded under a loss portfolio transfer exceed the consideration paid, the resulting gain from such excess is deferred and amortized into earnings in future periods in proportion to actual recoveries under the loss portfolio transfer. In any period in which there is a revised estimate of claim and allocated claim adjustment expenses and the loss portfolio transfer is in a gain position, the deferred gain is recalculated as if the revised estimate was available at the inception date of the loss portfolio transfer and the change in the deferred gain is recognized in earnings. Deferred acquisition costs: Deferrable acquisition costs include commissions, premium taxes and certain underwriting and policy issuance costs which are incremental direct costs of successful contract acquisitions. Acquisition costs related to property and casualty business are deferred and amortized ratably over the period the related premiums are earned. Deferred acquisition costs are presented net of ceding commissions and other ceded acquisition costs. The Company evaluates deferred acquisition costs for recoverability. Anticipated investment income is considered in the determination of the recoverability of deferred acquisition costs. Adjustments, if necessary, are recorded in current period results of operations. Policyholder dividends: Policyholder dividends are paid to participating policyholders within the worker’s compensation and surety lines of business. Net written premiums for participating dividend policies were approximately 1% of total net written premiums for each of the years ended December 31, 2019, 2018 and 2017. Dividends to policyholders are accrued according to the Company's best estimate of the amount to be paid in accordance with contractual provisions and applicable state laws. Dividends to policyholders are presented as a component of Insurance claims & policyholders' benefits on the Consolidated Statements of Operations and Other liabilities on the Consolidated Balance Sheets. Investments The Company classifies its fixed maturity securities as either available-for-sale or trading, and as such, they are carried at fair value. Changes in fair value of trading securities are reported within Net investment income on the Consolidated Statements of Operations. Changes in fair value related to available-for-sale securities are reported as a component of Other comprehensive income. The cost of fixed maturity securities classified as available-for-sale is adjusted for amortization of premiums and accretion of discounts, which are included in Net investment income on the Consolidated Statements of Operations. The amortization of premium and accretion of discount for fixed maturity securities takes into consideration call and maturity dates that produce the lowest yield. For asset-backed securities included in fixed maturity securities, the Company recognizes income using an effective yield based on anticipated prepayments and the estimated economic life of the securities. When estimates of prepayments change, the effective yield is recalculated to reflect actual payments to date and anticipated future payments. To the extent that unrealized gains on fixed maturity securities supporting long term care products and structured settlements not funded by annuities would result in a premium deficiency if those gains were realized, a related increase in Insurance reserves is recorded, net of tax, as a reduction of net unrealized gains through Other comprehensive income (Shadow Adjustments). Shadow Adjustments, net of tax, increased $1,120 million and decreased $333 million for the years ended December 31, 2019 and 2018 , respectively. As of December 31, 2019 and 2018 , net unrealized gains on investments included in Accumulated other comprehensive income (AOCI) were correspondingly reduced by Shadow Adjustments of $2,198 million and $1,078 million , respectively. Equity securities are carried at fair value. The Company's non-redeemable preferred stock contain characteristics of debt securities, are priced similarly to bonds and are held primarily for income generation through periodic dividends. While recognition of gains and losses on these securities is not discretionary, management does not consider the changes in fair value of non-redeemable preferred stock to be reflective of our primary operations. As such, the changes in the fair value of these securities are recorded through Net investment gains (losses). The Company owns certain common stock with the intention of holding the securities primarily for market appreciation and as such, the changes in the fair value of these securities are recorded through Net investment income. Prior to 2018, equity securities were considered available for sale with changes in fair value reported as a component of Other comprehensive income. The Company's carrying value of investments in limited partnerships is its share of the net asset value of each partnership, as determined by the general partner. Certain partnerships for which results are not available on a timely basis are reported on a lag, primarily three months or less. Changes in net asset values are accounted for under the equity method and recorded within Net investment income on the Consolidated Statements of Operations. Mortgage loans are commercial in nature, are carried at unpaid principal balance, net of unamortized fees and any valuation allowance, and are recorded once funded. Interest income from mortgage loans is recognized on an accrual basis using the effective yield method. Mortgage loans are considered to be impaired loans when it is probable that contractual principal and interest payments will not be collected. The Company evaluates loans for impairment on an individual loan basis and identifies loans for evaluation of impairment based on the collection experience of each loan and other credit quality indicators such as debt service coverage ratio and the creditworthiness of the borrower or tenants of credit tenant loan properties. Accrual of income is generally suspended for mortgage loans that are impaired and collection of principal and interest payments is unlikely. Mortgage loans are considered past due when full principal or interest payments have not been received according to contractual terms. As of December 31, 2019 and 2018 , there were no loans past due or in non-accrual status, and no valuation allowance was recorded. Other invested assets include overseas deposits. Overseas deposits are valued using the net asset value per share (or equivalent) practical expedient. They are primarily short-term government securities, agency securities and corporate bonds held in trusts that are managed by Lloyd's of London. These funds are required of Lloyd's syndicates to protect policyholders in overseas markets and may be denominated in local currency. Short term investments are carried at fair value, with the exception of cash accounts earning interest, which are carried at cost and approximate fair value. Changes in fair value are reported as a component of Other comprehensive income. Purchases and sales of all securities are recorded on the trade date, except for private placement debt securities, including bank loan participations, which are recorded once funded. Net investment gains and losses are determined on the basis of the cost or amortized cost of the specific securities sold. In the normal course of investing activities, the Company enters into relationships with variable interest entities (VIEs), as both an investor in limited partnerships and asset-backed securities issued by third-party VIEs. The Company is not the primary beneficiary of these VIEs, and therefore does not consolidate them. The Company determines whether it is the primary beneficiary of a VIE based on a qualitative assessment of the relative power and benefits of the Company and the other participants in the VIE. The Company’s maximum exposure to loss with respect to these investments is limited to the investment carrying values included in the Company’s Consolidated Balance Sheets and any unfunded commitments. An available for sale security is impaired if the fair value of the security is less than its cost adjusted for accretion, amortization and previously recorded OTTI losses, otherwise defined as an unrealized loss. When a security is impaired, the impairment is evaluated to determine whether it is temporary or other-than-temporary. When the decline in value is determined by the Company to be other-than-temporary, losses are recognized within Net investment gains (losses) on the Consolidated Statements of Operations. Significant judgment is required in the determination of whether an OTTI loss has occurred for a security. The Company follows a consistent and systematic process for determining and recording an OTTI loss, including the evaluation of securities in an unrealized loss position on at least a quarterly basis. The Company’s assessment of whether an OTTI loss has occurred incorporates both quantitative and qualitative information. Fixed maturity securities that the Company intends to sell, or it more likely than not will be required to sell before recovery of amortized cost, are considered to be other-than-temporarily impaired and the entire difference between the amortized cost basis and fair value of the security is recognized as an OTTI loss in earnings. The remaining fixed maturity securities in an unrealized loss position are evaluated to determine if a credit loss exists. The factors considered include (a) the financial condition and near-term and long-term prospects of the issuer, (b) whether the debtor is current on interest and principal payments, (c) credit ratings of the securities and (d) general market conditions and industry or sector specific outlook. The Company also considers results and analysis of cash flow modeling for asset-backed securities, and when appropriate, other fixed maturity securities. If the present value of the modeled expected cash flows equals or exceeds the amortized cost of a security, no credit loss is judged to exist and the asset-backed security is deemed to be temporarily impaired. If the present value of the expected cash flows is less than amortized cost, the security is judged to be other-than-temporarily impaired for credit reasons and that shortfall, referred to as the credit component, is recognized as an OTTI loss in earnings. The difference between the adjusted amortized cost basis and fair value, referred to as the non-credit component, is recognized as OTTI in Other comprehensive income. In subsequent reporting periods, a change in intent to sell or further credit impairment on a security whose fair value has not deteriorated will cause the non-credit component originally recorded as OTTI in Other comprehensive income to be recognized as an OTTI loss in earnings. Significant assumptions enter into these cash flow projections including delinquency rates, probable risk of default, loss severity upon a default, over collateralization and interest coverage triggers and credit support from lower l |
Investments
Investments | 12 Months Ended |
Dec. 31, 2019 | |
Investments [Abstract] | |
Investments | Investments The significant components of Net investment income are presented in the following table. Years ended December 31 (In millions) 2019 2018 2017 Fixed maturity securities $ 1,817 $ 1,795 $ 1,812 Equity securities 85 18 12 Limited partnership investments 180 (22 ) 207 Mortgage loans 51 50 34 Short term investments 34 26 15 Trading portfolio 9 7 12 Other 5 4 1 Gross investment income 2,181 1,878 2,093 Investment expense (63 ) (61 ) (59 ) Net investment income $ 2,118 $ 1,817 $ 2,034 For the year ended December 31, 2019 , $38 million of Net investment income was recognized due to the change in fair value of common stock still held as of December 31, 2019 . For the year ended December 31, 2018 , $24 million of losses were recognized in Net investment income due to the change in fair value of common stock still held as of December 31, 2018 . As of December 31, 2019 the Company held less than $1 million of non-income producing fixed maturity securities. As of December 31, 2018 the Company held no non-income producing fixed maturity securities. As of December 31, 2019 and 2018 , no investments in a single issuer exceeded 10% of stockholders' equity, other than investments in securities issued by the U.S. Treasury and obligations of government-sponsored enterprises. Net investment gains (losses) are presented in the following table. Years ended December 31 (In millions) 2019 2018 2017 Net investment gains (losses): Fixed maturity securities: Gross gains $ 125 $ 168 $ 186 Gross losses (131 ) (164 ) (64 ) Net investment gains (losses) on fixed maturity securities (6 ) 4 122 Equity securities 66 (74 ) — Derivatives (11 ) 9 (4 ) Short term investments and other (20 ) 9 (25 ) Net investment gains (losses) $ 29 $ (52 ) $ 93 For the year ended December 31, 2019 , $66 million of gains were recognized in Net investment gains (losses) due to the change in fair value of non-redeemable preferred stock still held as of December 31, 2019 . For the year ended December 31, 2018 , $73 million of losses were recognized in Net investment gains (losses) due to the change in fair value of non-redeemable preferred stock still held as of December 31, 2018 . Net investment gains (losses) for the year ended December 31, 2019 included a $21 million loss related to the redemption of the Company's $500 million senior notes due August 2020. Net investment gains (losses) for the year ended December 31, 2017 included a $42 million loss related to the redemption of the Company's $350 million senior notes due November 2019. Net change in unrealized gains on investments is presented in the following table. Years ended December 31 (In millions) 2019 2018 2017 Net change in unrealized gains on investments: Fixed maturity securities $ 2,620 $ (1,811 ) $ 728 Equity securities (1) — — 32 Other — — (2 ) Total net change in unrealized gains on investments $ 2,620 $ (1,811 ) $ 758 (1) As of January 1, 2018, the Company adopted ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . The change in fair value of equity securities is now recognized through the income statement. See Note A to the Consolidated Financial Statements for additional information. The components of OTTI losses recognized in earnings by asset type are presented in the following table. Years ended December 31 (In millions) 2019 2018 2017 Fixed maturity securities available-for-sale: Corporate and other bonds $ 33 $ 12 $ 12 Asset-backed 11 9 1 Total fixed maturity securities available-for-sale 44 21 13 Equity securities available-for-sale — — 1 OTTI losses recognized in earnings $ 44 $ 21 $ 14 The following tables present a summary of fixed maturity securities. December 31, 2019 Cost or Gross Gross Estimated Unrealized (In millions) Fixed maturity securities available-for-sale: Corporate and other bonds $ 19,789 $ 2,292 $ 32 $ 22,049 $ — States, municipalities and political subdivisions 9,093 1,559 — 10,652 — Asset-backed: Residential mortgage-backed 4,387 133 1 4,519 (17 ) Commercial mortgage-backed 2,265 86 5 2,346 1 Other asset-backed 1,925 41 4 1,962 (3 ) Total asset-backed 8,577 260 10 8,827 (19 ) U.S. Treasury and obligations of government-sponsored enterprises 146 1 2 145 — Foreign government 491 14 1 504 — Redeemable preferred stock 10 — — 10 — Total fixed maturity securities available-for-sale 38,106 4,126 45 42,187 $ (19 ) Total fixed maturity securities trading 20 — — 20 Total fixed maturity securities $ 38,126 $ 4,126 $ 45 $ 42,207 December 31, 2018 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 $ 18,764 $ 791 $ 395 $ 19,160 $ — States, municipalities and political subdivisions 9,681 1,076 9 10,748 — Asset-backed: Residential mortgage-backed 4,815 68 57 4,826 (20 ) Commercial mortgage-backed 2,200 28 32 2,196 — Other asset-backed 1,975 11 24 1,962 — Total asset-backed 8,990 107 113 8,984 (20 ) U.S. Treasury and obligations of government-sponsored enterprises 156 3 — 159 — Foreign government 480 5 4 481 — Redeemable preferred stock 10 — — 10 — Total fixed maturity securities available-for-sale 38,081 1,982 521 39,542 $ (20 ) Total fixed maturity securities trading 4 — — 4 Total fixed maturity securities $ 38,085 $ 1,982 $ 521 $ 39,546 The following tables present the estimated fair value and gross unrealized losses of fixed maturity 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 December 31, 2019 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 $ 914 $ 21 $ 186 $ 11 $ 1,100 $ 32 States, municipalities and political subdivisions 34 — — — 34 — Asset-backed: Residential mortgage-backed 249 1 30 — 279 1 Commercial mortgage-backed 381 3 20 2 401 5 Other asset-backed 449 3 33 1 482 4 Total asset-backed 1,079 7 83 3 1,162 10 U.S. Treasury and obligations of government-sponsored enterprises 62 2 2 — 64 2 Foreign government 59 1 1 — 60 1 Total $ 2,148 $ 31 $ 272 $ 14 $ 2,420 $ 45 Less than 12 Months 12 Months or Longer Total December 31, 2018 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 $ 8,543 $ 340 $ 825 $ 55 $ 9,368 $ 395 States, municipalities and political subdivisions 517 8 5 1 522 9 Asset-backed: Residential mortgage-backed 1,932 23 1,119 34 3,051 57 Commercial mortgage-backed 728 10 397 22 1,125 32 Other asset-backed 834 21 125 3 959 24 Total asset-backed 3,494 54 1,641 59 5,135 113 U.S. Treasury and obligations of government-sponsored enterprises 21 — 19 — 40 — Foreign government 114 2 124 2 238 4 Total $ 12,689 $ 404 $ 2,614 $ 117 $ 15,303 $ 521 Based on current facts and circumstances, the Company believes the unrealized losses presented in the December 31, 2019 securities in a gross unrealized loss position table above are not indicative of the ultimate collectibility of the current amortized cost of the securities, but rather are attributable to changes in interest rates, 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 December 31, 2019 . 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 December 31, 2019 , 2018 and 2017 for which a portion of an OTTI loss was recognized in Other comprehensive income (loss). Years ended December 31 (In millions) 2019 2018 2017 Beginning balance of credit losses on fixed maturity securities $ 18 $ 27 $ 36 Reductions for securities sold during the period (8 ) (9 ) (9 ) Ending balance of credit losses on fixed maturity securities $ 10 $ 18 $ 27 Contractual Maturity The following table presents available-for-sale fixed maturity securities by contractual maturity. December 31 2019 2018 (In millions) Cost or Amortized Cost Estimated Fair Value Cost or Amortized Cost Estimated Fair Value Due in one year or less $ 1,334 $ 1,356 $ 1,350 $ 1,359 Due after one year through five years 9,746 10,186 7,979 8,139 Due after five years through ten years 14,892 15,931 16,859 16,870 Due after ten years 12,134 14,714 11,893 13,174 Total $ 38,106 $ 42,187 $ 38,081 $ 39,542 Actual maturities may differ from contractual maturities because certain securities may be called or prepaid. Securities not due at a single date are allocated based on weighted average life. Limited Partnerships The carrying value of limited partnerships as of December 31, 2019 and 2018 was $1,752 million and $1,982 million , which includes net undistributed earnings of $229 million and $153 million . Limited partnerships comprising 60% of the total carrying value are reported on a current basis through December 31, 2019 with no reporting lag, 10% are reported on a one month lag and the remainder are reported on more than a one month lag. The number of limited partnerships held and the strategies employed provide diversification to the limited partnership portfolio and the overall invested asset portfolio. Limited partnerships comprising 61% and 65% of the carrying value as of December 31, 2019 and 2018 employ hedge fund strategies. Limited partnerships comprising 33% and 30% of the carrying value as of December 31, 2019 and 2018 were invested in private debt and equity. The remainder was primarily invested in real estate strategies. Hedge fund strategies include both long and short positions in fixed income, equity and derivative instruments. These hedge fund strategies may seek to generate gains from mispriced or undervalued securities, price differentials between securities, distressed investments, sector rotation or various arbitrage disciplines. Within hedge fund strategies, approximately 55% were equity related, 23% were focused on distressed investments, 18% pursued a multi-strategy approach and 4% were fixed income related as of December 31, 2019 . The ten largest limited partnership positions held totaled $893 million and $876 million as of December 31, 2019 and 2018 . Based on the most recent information available regarding the Company’s percentage ownership of the individual limited partnerships, the carrying value reflected on the Consolidated Balance Sheets represents approximately 2% of the aggregate partnership equity as of December 31, 2019 and 2018 , and the related income reflected on the Consolidated Statements of Operations represents approximately 2% , 3% and 3% of the changes in aggregate partnership equity for the years ended December 31, 2019 , 2018 and 2017 . There are risks inherent in limited partnership investments which may result in losses due to short-selling, derivatives or other speculative investment practices. The use of leverage increases volatility generated by the underlying investment strategies. The Company’s hedge fund limited partnership investments contain withdrawal provisions that generally limit liquidity for a period of thirty days up to one year or longer. Private equity and other non-hedge funds generally do not permit voluntary withdrawals. Typically, hedge fund withdrawals require advance written notice of up to 90 days. Derivative Financial Instruments The Company may use derivatives in the normal course of business, primarily in an attempt to reduce its exposure to market risk (principally interest rate risk and foreign currency risk) stemming from various assets and liabilities. The Company's principal objective under such strategies is to achieve the desired reduction in economic risk, even if the position does not receive hedge accounting treatment. The Company may enter into interest rate swaps, futures and forward commitments to purchase securities to manage interest rate risk. The Company may use foreign currency forward contracts to manage foreign currency risk. Credit exposure associated with non-performance by the counterparties to derivative instruments is generally limited to the uncollateralized fair value of the asset related to the instruments recognized on the Consolidated Balance Sheets. The Company generally requires that all over-the-counter derivative contracts be governed by an International Swaps and Derivatives Association Master Agreement, and exchanges collateral under the terms of these agreements with its derivative investment counterparties depending on the amount of the exposure and the credit rating of the counterparty. Gross estimated fair values of derivative positions are presented in Other invested assets and Other liabilities on the Consolidated Balance Sheets. The Company does not offset derivative positions against the fair value of collateral provided or positions subject to netting arrangements. There would be no significant difference in the balance included in such accounts if the estimated fair values were presented net as of December 31, 2019 and 2018 . There was no cash collateral provided by the Company or cash collateral received from counterparties as of December 31, 2019 or 2018 . The Company holds an embedded derivative on a funds withheld liability with a notional value of $182 million and $172 million and a fair value of $(7) million and $4 million as of December 31, 2019 and 2018 . The embedded derivative on the funds withheld liability is accounted for separately and reported with the funds withheld liability in Other liabilities on the Consolidated Balance Sheets. Investment Commitments As part of its overall investment strategy, the Company invests in various assets which require future purchase, sale or funding commitments. These investments are recorded once funded, and the related commitments may include future capital calls from various third-party limited partnerships, signed and accepted mortgage loan applications, and obligations related to privately placed debt securities. As of December 31, 2019 , the Company had commitments to purchase or fund approximately $945 million and sell approximately $85 million under the terms of these investments. Investments on Deposit Securities with carrying values of approximately $2.7 billion and $2.5 billion were deposited by the Company’s insurance subsidiaries under requirements of regulatory authorities and others as of December 31, 2019 and 2018 . Cash and securities with carrying values of approximately $1.1 billion and $1.0 billion were deposited with financial institutions in trust accounts or as collateral for letters of credit to secure obligations with various third parties as of December 31, 2019 and 2018 . |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 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 may include i) the review of pricing service methodologies or broker pricing qualifications, 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, and iv) deep dives, where the Company performs an independent analysis of the inputs and assumptions used to price individual securities. Assets and Liabilities Measured at Fair Value Assets and liabilities measured at fair value on a recurring basis are presented in the following tables. Corporate bonds and other includes obligations of the U.S. Treasury, government-sponsored enterprises, foreign governments and redeemable preferred stock. December 31, 2019 Total Assets/Liabilities at Fair Value (In millions) Level 1 Level 2 Level 3 Assets Fixed maturity securities: Corporate bonds and other $ 175 $ 22,085 $ 468 $ 22,728 States, municipalities and political subdivisions — 10,652 — 10,652 Asset-backed — 8,662 165 8,827 Total fixed maturity securities 175 41,399 633 42,207 Equity securities: Common stock 135 — 7 142 Non-redeemable preferred stock 54 658 11 723 Total equity securities 189 658 18 865 Short term and other 397 1,344 — 1,741 Total assets $ 761 $ 43,401 $ 651 $ 44,813 Liabilities Other liabilities $ — $ 7 $ — $ 7 Total liabilities $ — $ 7 $ — $ 7 December 31, 2018 Total Assets/Liabilities at Fair Value (In millions) Level 1 Level 2 Level 3 Assets Fixed maturity securities: Corporate bonds and other $ 196 $ 19,396 $ 222 $ 19,814 States, municipalities and political subdivisions — 10,748 — 10,748 Asset-backed — 8,787 197 8,984 Total fixed maturity securities 196 38,931 419 39,546 Equity securities: Common stock 144 — 4 148 Non-redeemable preferred stock 48 570 14 632 Total equity securities 192 570 18 780 Short term and other 216 949 — 1,165 Total assets $ 604 $ 40,450 $ 437 $ 41,491 Liabilities Other liabilities $ — $ (4 ) $ — $ (4 ) Total liabilities $ — $ (4 ) $ — $ (4 ) The tables below present a reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3). Level 3 (In millions) Corporate bonds and other States, municipalities and political subdivisions Asset-backed Equity securities Total Balance as of January 1, 2019 $ 222 $ — $ 197 $ 18 $ 437 Total realized and unrealized investment gains (losses): Reported in Net investment gains (losses) — — — (2 ) (2 ) Reported in Net investment income — — — — — Reported in Other comprehensive income (loss) 33 — 8 — 41 Total realized and unrealized investment gains (losses) 33 — 8 (2 ) 39 Purchases 256 — 48 2 306 Sales — — — — — Settlements (11 ) — (16 ) — (27 ) Transfers into Level 3 — — 45 — 45 Transfers out of Level 3 (32 ) — (117 ) — (149 ) Balance as of December 31, 2019 $ 468 $ — $ 165 $ 18 $ 651 Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2019 recognized in Net income (loss) in the period $ — $ — $ — $ (2 ) $ (2 ) Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2019 recognized in Other comprehensive income (loss) in the period 28 — 7 — 35 Level 3 (In millions) Corporate bonds and other States, municipalities and political subdivisions Asset-backed Equity securities Total Balance as of January 1, 2018 $ 98 $ 1 $ 335 $ 20 $ 454 Total realized and unrealized investment gains (losses): Reported in Net investment gains (losses) (1 ) — 5 (2 ) 2 Reported in Net investment income — — — — — Reported in Other comprehensive income (loss) (4 ) — (8 ) — (12 ) Total realized and unrealized investment gains (losses) (5 ) — (3 ) (2 ) (10 ) Purchases 117 — 162 — 279 Sales (5 ) — (72 ) — (77 ) Settlements (9 ) (1 ) (64 ) — (74 ) Transfers into Level 3 35 — 42 — 77 Transfers out of Level 3 (9 ) — (203 ) — (212 ) Balance as of December 31, 2018 $ 222 $ — $ 197 $ 18 $ 437 Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2018 recognized in Net income (loss) in the period $ — $ — $ (2 ) $ (2 ) $ (4 ) Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2018 recognized in Other comprehensive income (loss) in the period (5 ) — (4 ) — (9 ) 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 highly liquid government securities and exchange traded bonds, 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 primarily 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 some 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 valued using pricing for similar securities, recently executed transactions and other pricing models utilizing market observable inputs. Level 3 securities are primarily priced using broker/dealer quotes and internal models with some inputs that are not market observable. Short Term and Other Invested Assets Securities that are actively traded or have quoted prices are classified as Level 1. These securities include money market funds and treasury bills. Level 2 primarily includes commercial paper, for which all inputs are market observable. Fixed maturity securities purchased within one year of maturity are classified consistent with fixed maturity securities discussed above. Short term investments as presented in the tables above differ from the amounts presented on the Consolidated Balance Sheets because certain short term investments, such as time deposits, are not measured at fair value. As of December 31, 2019 and December 31, 2018 , there were $60 million and $48 million of overseas deposits within Other invested assets, which can be redeemed at net asset value in 90 days or less. Overseas deposits are excluded from the fair value hierarchy because their fair value is recorded using the net asset value per share (or equivalent) practical expedient. Derivative Financial Investments 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 primarily valued with observable inputs. 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 tables 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. The weighted average rate is calculated based on fair value. December 31, 2019 Estimated Fair Value (In millions) Valuation Technique(s) Unobservable Input(s) Range (Weighted Average) Fixed maturity securities $ 525 Discounted cash flow Credit spread 1% - 6% (2%) December 31, 2018 Estimated Fair Value Valuation Technique(s) Unobservable Input(s) Range (Weighted Average) Fixed maturity securities $ 228 Discounted cash flow Credit spread 1% - 12% (3%) For fixed maturity securities, an increase to the credit spread assumptions 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 Consolidated Balance Sheets are presented in the following tables. December 31, 2019 Carrying Amount Estimated Fair Value (In millions) Level 1 Level 2 Level 3 Total Assets Mortgage loans $ 994 $ — $ — $ 1,025 $ 1,025 Note receivable 21 — — 21 21 Liabilities Long term debt $ 2,679 $ — $ 2,906 $ — $ 2,906 December 31, 2018 Carrying Estimated Fair Value (In millions) Level 1 Level 2 Level 3 Total Assets Mortgage loans $ 839 $ — $ — $ 827 $ 827 Note receivable 35 — — 35 35 Liabilities Long term debt $ 2,680 $ — $ 2,731 $ — $ 2,731 The following methods and assumptions were used to estimate the fair value of these financial assets and liabilities. The fair value of mortgage loans was 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 fair value of the note receivable was based on the present value of the expected future cash flows discounted at the current interest rate for origination of similar notes, adjusted for specific credit risk. The note receivable is included within Other assets on the Consolidated Balance Sheets. The Company's senior notes and debentures were valued based on observable market prices. The fair value for other debt was estimated using discounted cash flows based on current incremental borrowing rates for similar borrowing arrangements. The carrying amounts reported on the Consolidated Balance Sheets for Cash, Short term investments not carried at fair value, Accrued investment income and certain Other assets and Other liabilities approximate fair value due to the short term nature of these items. These assets and liabilities are not listed in the tables above. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The CNA Tax Group is included in the consolidated federal income tax return of Loews and its eligible subsidiaries. Loews and the Company have agreed that for each taxable year, the Company will 1) be paid by Loews the amount, if any, by which the Loews consolidated federal income tax liability is reduced by virtue of the inclusion of the CNA Tax Group in the Loews consolidated federal income tax return, or 2) pay to Loews an amount, if any, equal to the federal income tax that would have been payable by the CNA Tax Group filing a separate consolidated tax return. In the event that Loews should have a net operating loss in the future computed on the basis of filing a separate consolidated tax return without the CNA Tax Group, the Company may be required to repay tax recoveries previously received from Loews. This agreement may be canceled by either party upon 30 days written notice. For the years ended December 31, 2019 , 2018 and 2017 , the Company paid $239 million , $275 million and $127 million to Loews related to federal income taxes. For 2017 through 2019 , the Internal Revenue Service (IRS) has accepted Loews and the Company into the Compliance Assurance Process (CAP), which is a voluntary program for large corporations. Under CAP, the IRS conducts a real-time audit and works contemporaneously with the Company to resolve any issues prior to the filing of the tax return. The Company believes that this approach should reduce tax-related uncertainties, if any. As of December 31, 2019 and 2018 , there were no unrecognized tax benefits. The Company recognizes interest accrued related to unrecognized tax benefits and tax refund claims in Income tax (expense) benefit on the Consolidated Statements of Operations. The Company recognizes penalties (if any) in Income tax (expense) benefit on the Consolidated Statements of Operations. During 2019 , 2018 and 2017 the Company recognized no interest and no penalties. There were no amounts accrued for interest or penalties as of December 31, 2019 or 2018 . On December 22, 2017, H.R.1, “An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018,” was signed into law (Tax Reform Legislation). The Tax Reform Legislation provided for a permanent reduction in the Federal corporate income tax rate from 35% to 21% effective January 1, 2018, among other provisions. The Company was required to recognize the effect of this tax rate change on its deferred tax assets in the period the tax rate change was signed into law. Consequently, the Company recorded a non-cash increase to Income tax expense of $83 million in the Consolidated Statements of Operations for the year ended December 31, 2017 . Based on the filed 2017 tax return, the effect of the tax rate change decreased Income tax expense by $6 million for the year ended December 31, 2018 . The following table presents a reconciliation between the Company's federal income tax expense at statutory rates and the recorded income tax expense. Years ended December 31 (In millions) 2019 2018 2017 Income tax expense at statutory rates $ (257 ) $ (203 ) $ (459 ) Tax benefit from tax exempt income 53 63 131 Foreign taxes and credits (1 ) (1 ) 3 State income taxes (14 ) (13 ) (7 ) Net deferred tax asset remeasurement — 6 (83 ) Other tax expense (4 ) (3 ) 4 Income tax expense $ (223 ) $ (151 ) $ (411 ) As of December 31, 2019 , no deferred taxes are required on the undistributed earnings of subsidiaries subject to tax. The following table presents the current and deferred components of the Company's income tax expense. Years ended December 31 (In millions) 2019 2018 2017 Current tax expense $ (269 ) $ (171 ) $ (243 ) Deferred tax benefit (expense) 46 20 (168 ) Total income tax expense $ (223 ) $ (151 ) $ (411 ) Total income tax presented above includes foreign tax (expense)/benefit of approximately $(19) million , $(5) million and $1 million related to pretax income from foreign operations of approximately $43 million , $22 million and $39 million for the years ended December 31, 2019 , 2018 and 2017 . The deferred tax effects of the significant components of the Company's deferred tax assets and liabilities are presented in the following table. December 31 (In millions) 2019 2018 Deferred Tax Assets: Insurance reserves: Property and casualty claim and claim adjustment expense reserves $ 129 $ 108 Unearned premium reserves 153 108 Receivables 11 15 Employee benefits 127 143 Deferred retroactive reinsurance benefit 82 79 Other assets 132 131 Gross deferred tax assets 634 584 Deferred Tax Liabilities: Investment valuation differences 40 44 Deferred acquisition costs 83 78 Net unrealized gains 264 14 Software and hardware 34 44 Other liabilities 14 12 Gross deferred tax liabilities 435 192 Net deferred tax asset $ 199 $ 392 As of December 31, 2019 , the CNA Tax Group had no loss carryforwards and a tax credit carryforward of $2 million which expires in 2029. The foreign operations had loss carryforwards of $42 million , $2 million of which expires in 2035, and tax credit carryforwards of $2 million , which have no expiration. Although realization of deferred tax assets is not assured, management believes it is more likely than not that the recognized net deferred tax asset will be realized through recoupment of ordinary and capital taxes paid in prior carryback years and through future earnings, reversal of existing temporary differences and available tax planning strategies. As a result, no valuation allowance was recorded as of December 31, 2019 or 2018 . |
Claim and Claim Adjustment Expe
Claim and Claim Adjustment Expense Reserves | 12 Months Ended |
Dec. 31, 2019 | |
Liability for Claims and Claims Adjustment Expense [Abstract] | |
Claim and Claim Adjustment Expense Reserves | Claim, Claim Adjustment Expense and Future Policy Benefit Reserves Property and casualty insurance claim and claim adjustment expense reserves represent the estimated amounts necessary to resolve all outstanding claims, including IBNR claims as of the reporting date. The Company's reserve projections are based primarily on detailed analysis of the facts in each case, the Company's experience with similar cases and various historical development patterns. Consideration is given to historical patterns such as claim reserving trends and settlement practices, loss payments, pending levels of unpaid claims and product mix, as well as court decisions and 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 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. Liability for Unpaid Claim and Claim Adjustment Expenses The table below reconciles the net liability for unpaid claim and claim adjustment expenses to the amount presented on the Consolidated Balance Sheets. As of December 31 (In millions) 2019 Net liability for unpaid claim and claim adjustment expenses: Specialty $ 4,676 Commercial 7,849 International 1,628 Corporate & Other 175 Life & Group (1) 3,557 Total net claim and claim adjustment expenses 17,885 Reinsurance receivables: (2) Specialty 562 Commercial 807 International 248 Corporate & Other (3) 2,059 Life & Group 159 Total reinsurance receivables 3,835 Total gross liability for unpaid claim and claim adjustment expenses $ 21,720 (1) The Life & Group segment amounts are primarily related to long term care claim reserves, but also include amounts related to unfunded structured settlements arising from short duration contracts. Long term care policies are long duration contracts. (2) Reinsurance receivables presented are gross of the allowance for uncollectible reinsurance and do not include reinsurance receivables related to paid losses. (3) The Corporate & Other Reinsurance receivables are primarily related to A&EP claims covered under the Loss Portfolio Transfer (LPT). The following table presents a reconciliation between beginning and ending claim and claim adjustment expense reserves, including claim and claim adjustment expense reserves of the Life & Group segment. As of or for the years ended December 31 (In millions) 2019 2018 2017 Reserves, beginning of year: Gross $ 21,984 $ 22,004 $ 22,343 Ceded 4,019 3,934 4,094 Net reserves, beginning of year 17,965 18,070 18,249 Net incurred claim and claim adjustment expenses: Provision for insured events of current year 5,356 5,358 5,201 Increase (decrease) in provision for insured events of prior years (127 ) (179 ) (381 ) Amortization of discount 184 176 179 Total net incurred (1) 5,413 5,355 4,999 Net payments attributable to: Current year events (992 ) (1,046 ) (975 ) Prior year events (4,584 ) (4,285 ) (4,366 ) Total net payments (5,576 ) (5,331 ) (5,341 ) Foreign currency translation adjustment and other 83 (129 ) 163 Net reserves, end of year 17,885 17,965 18,070 Ceded reserves, end of year 3,835 4,019 3,934 Gross reserves, end of year $ 21,720 $ 21,984 $ 22,004 (1) Total net incurred above does not agree to Insurance claims and policyholders' benefits as reflected on the Consolidated Statements of Operations due to amounts related to retroactive reinsurance deferred gain accounting, uncollectible reinsurance and benefit expenses related to future policy benefits, which are not reflected in the table above. Reserving Methodology In developing claim and claim adjustment expense (loss or losses) reserve estimates, the Company's actuaries perform detailed reserve analyses that are staggered throughout the year. Every reserve group is reviewed at least once during the year, but most are reviewed more frequently. The analyses generally review losses gross of ceded reinsurance and apply the ceded reinsurance terms to the gross estimates to establish estimates net of reinsurance. Factors considered include, but are not limited to, the historical pattern and volatility of the actuarial indications, the sensitivity of the actuarial indications to changes in paid and incurred loss patterns, the consistency of claims handling processes, the consistency of case reserving practices, changes in the Company's pricing and underwriting, pricing and underwriting trends in the insurance market and legal, judicial, social and economic trends. In addition to the detailed analyses, the Company reviews actual loss emergence for all products each quarter. In developing the loss reserve estimates for property and casualty contracts, the Company generally projects ultimate losses using several common actuarial methods as listed below. The Company reviews the various indications from the various methods and applies judgment to select an actuarial point estimate. The carried reserve may differ from the actuarial point estimate as the result of the Company's consideration of the factors noted above as well as the potential volatility of the projections associated with the specific product being analyzed and other factors affecting claims costs that may not be quantifiable through traditional actuarial analysis. The indicated required reserve is the difference between the selected ultimate loss and the inception-to-date paid losses. The difference between the selected ultimate loss and the case incurred or reported loss is IBNR. IBNR includes a provision for development on known cases as well as a provision for late reported incurred claims. The most frequently utilized methods to project ultimate losses include the following: • Paid development: The paid development method estimates ultimate losses by reviewing paid loss patterns and applying them to accident years with further expected changes in paid loss. • Incurred development: The incurred development method is similar to the paid development method, but it uses case incurred losses instead of paid losses. • Loss ratio: The loss ratio method multiplies premiums by an expected loss ratio to produce ultimate loss estimates for each accident year. • Bornhuetter-Ferguson using premiums and paid loss: The Bornhuetter-Ferguson using premiums and paid loss method is a combination of the paid development approach and the loss ratio approach. This method normally determines expected loss ratios similar to the approach used to estimate the expected loss ratio for the loss ratio method. • Bornhuetter-Ferguson using premiums and incurred loss: The Bornhuetter-Ferguson using premiums and incurred loss method is similar to the Bornhuetter-Ferguson using premiums and paid loss method except that it uses case incurred losses. • Frequency times severity: The frequency times severity method multiplies a projected number of ultimate claims by an estimated ultimate average loss for each accident year to produce ultimate loss estimates. • Stochastic modeling: The stochastic modeling produces a range of possible outcomes based on varying assumptions related to the particular product being modeled. For many exposures, especially those that are considered long-tail, a particular accident or policy year may not have a sufficient volume of paid losses to produce a statistically reliable estimate of ultimate losses. In such a case, the Company's actuaries typically assign more weight to the incurred development method than to the paid development method. As claims continue to settle and the volume of paid loss increases, the actuaries may assign additional weight to the paid development method. For most of the Company's products, even the incurred losses for accident or policy years that are early in the claim settlement process will not be of sufficient volume to produce a reliable estimate of ultimate losses. In these cases, the Company may not assign any weight to the paid and incurred development methods. The Company will use the loss ratio, Bornhuetter-Ferguson and frequency times severity methods. For short-tail exposures, the paid and incurred development methods can often be relied on sooner, primarily because the Company's history includes a sufficient number of years to cover the entire period over which paid and incurred losses are expected to change. However, the Company may also use the loss ratio, Bornhuetter-Ferguson and frequency times severity methods for short-tail exposures. For other more complex reserve groups where the above methods may not produce reliable indications, the Company uses additional methods tailored to the characteristics of the specific situation. The Company's reserving methodologies for mass tort and A&EP are similar as both are based on detailed reviews of large accounts with estimates of ultimate payments based on the facts in each case and the Company's view of applicable law and coverage litigation. Gross and Net Carried Reserves The following tables present the gross and net carried reserves. December 31, 2019 Specialty Commercial International Life & Group Corporate & Other Total (In millions) Gross Case Reserves $ 1,481 $ 3,937 $ 858 $ 3,576 $ 1,137 $ 10,989 Gross IBNR Reserves 3,757 4,719 1,018 140 1,097 10,731 Total Gross Carried Claim and Claim Adjustment Expense Reserves $ 5,238 $ 8,656 $ 1,876 $ 3,716 $ 2,234 $ 21,720 Net Case Reserves $ 1,343 $ 3,543 $ 759 $ 3,441 $ 92 $ 9,178 Net IBNR Reserves 3,333 4,306 869 116 83 8,707 Total Net Carried Claim and Claim Adjustment Expense Reserves $ 4,676 $ 7,849 $ 1,628 $ 3,557 $ 175 $ 17,885 December 31, 2018 Specialty Commercial International Life & Group Corporate & Other Total (In millions) Gross Case Reserves $ 1,623 $ 4,181 $ 867 $ 3,516 $ 1,208 $ 11,395 Gross IBNR Reserves 3,842 4,562 883 85 1,217 10,589 Total Gross Carried Claim and Claim Adjustment Expense Reserves $ 5,465 $ 8,743 $ 1,750 $ 3,601 $ 2,425 $ 21,984 Net Case Reserves $ 1,483 $ 3,831 $ 749 $ 3,364 $ 96 $ 9,523 Net IBNR Reserves 3,348 4,167 775 56 96 8,442 Total Net Carried Claim and Claim Adjustment Expense Reserves $ 4,831 $ 7,998 $ 1,524 $ 3,420 $ 192 $ 17,965 Net Prior Year Development Changes in estimates of claim and claim adjustment expense reserves, net of reinsurance, for prior years are defined as net prior year loss reserve development (development). These changes can be favorable or unfavorable. The following table presents development recorded for the Specialty, Commercial, International and Corporate & Other segments. Years ended December 31 (In millions) 2019 2018 2017 Pretax (favorable) unfavorable development: Specialty $ (92 ) $ (150 ) $ (174 ) Commercial (2 ) (25 ) (115 ) International 21 (4 ) (9 ) Corporate & Other — (2 ) (10 ) Total pretax (favorable) unfavorable development $ (73 ) $ (181 ) $ (308 ) Segment Development Tables For the Specialty, Commercial and International segments, the following tables present further detail and commentary on the development reflected in the financial statements for each of the periods presented. Also presented are loss reserve development tables that illustrate the change over time of reserves established for claim and allocated claim adjustment expenses arising from short duration insurance contracts for certain lines of business within each of these segments. Not all lines of business or segments are presented based on their context to the Company's overall loss reserves, calendar year reserve development, or calendar year net earned premiums. Insurance contracts are considered to be short duration contracts when the contracts are not expected to remain in force for an extended period of time. The Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses tables, reading across, show the cumulative net incurred claim and allocated claim adjustment expenses relating to each accident year at the end of the stated calendar year. Changes in the cumulative amount across time are the result of the Company's expanded awareness of additional facts and circumstances that pertain to the unsettled claims. The Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses tables, reading across, show the cumulative amount paid for claims in each accident year as of the end of the stated calendar year. The Net Strengthening or (Releases) of Prior Accident Year Reserves tables, reading across, show the net increase or decrease in the cumulative net incurred accident year claim and allocated claim adjustment expenses during each stated calendar year and indicates whether the reserves for that accident year were strengthened or released. The information in the tables is reported on a net basis after reinsurance and does not include the effects of discounting. The information contained in calendar years 2018 and prior is unaudited. Information contained in the tables pertaining to the Company's International segment has been presented at the year-end 2019 foreign currency exchange rates for all periods presented to remove the effects of foreign currency exchange rate changes between calendar years. The Company has presented development information for the Hardy business prospectively from the date of acquisition and is presented as a separate table within the Company's International segment. To the extent the Company enters into a commutation, the transaction is reported on a prospective basis. To the extent that the Company enters into a disposition, the effects of the disposition are reported on a retrospective basis by removing the balances associated with the disposed of business. The amounts reported for the cumulative number of reported claims include direct and assumed open and closed claims by accident year at the claimant level. The number excludes claim counts for claims within a policy deductible where the insured is responsible for payment of losses in the deductible layer. Claim count data for certain assumed reinsurance contracts is unavailable. IBNR includes reserves for incurred but not reported losses and expected development on case reserves. The Company does not establish case reserves for allocated loss adjusted expenses (ALAE), therefore ALAE reserves are also included in the estimate of IBNR. Specialty The following table presents further detail of the development recorded for the Specialty segment. Years ended December 31 (In millions) 2019 2018 2017 Pretax (favorable) unfavorable development: Medical Professional Liability $ 75 $ 47 $ 30 Other Professional Liability and Management Liability (69 ) (127 ) (126 ) Surety (92 ) (70 ) (84 ) Warranty (15 ) (10 ) 4 Other 9 10 2 Total pretax (favorable) unfavorable development $ (92 ) $ (150 ) $ (174 ) 2019 Unfavorable development in medical professional liability was primarily due to higher than expected severity in accident years 2016 through 2018 in our aging services business, higher than expected severity in accident year 2013 in our allied healthcare business, unfavorable outcomes on individual claims and higher than expected severity in accident year 2017 in our dentists business. Favorable development in other professional liability and management liability was primarily due to lower than expected claim frequency and favorable outcomes on individual claims in accident years 2017 and prior related to financial institutions, lower than expected large claim losses in recent accident years in our public company directors and officers liability (D&O) business and lower than expected loss adjustment expenses across accident years 2010 through 2018. Favorable development in surety was due to lower than expected frequency for accident years 2018 and prior. Favorable development in warranty was due to lower than expected paid loss emergence on vehicle products. 2018 Unfavorable development in medical professional liability was primarily due to higher than expected severity in accident years 2014 and 2017 in our hospitals business. Additionally, there was higher than expected frequency and severity in aging services in accident years 2014 through 2017 combined, partially offset by lower than expected frequency in accident year 2015. Favorable development in other professional liability and management liability was primarily due to lower than expected claim frequency in recent accident years related to financial institutions and professional liability errors and omissions (E&O), favorable severity in accident years 2015 and prior related to professional liability E&O and favorable outcomes on individual claims in financial institutions in accident years 2013 and prior. Favorable development in surety was due to lower than expected loss emergence for accident years 2017 and prior. 2017 Unfavorable development in medical professional liability was primarily due to continued higher than expected frequency in aging services and higher than expected severity for hospitals in recent accident years. This was partially offset by favorable development in hospitals in prior accident years as well as favorable development related to unallocated claim adjustment expenses. Favorable development in other professional liability and management liability was primarily due to favorable settlements on closed claims and a lower frequency of large losses for accident years 2011 through 2015 for professional and management liability, lower than expected claim frequency in accident years 2012 through 2015 for professional liability and lower than expected severity in accident years 2014 through 2015 for professional liability. Favorable development in surety coverages was primarily due to lower than expected frequency of large losses in accident years 2015 and prior. Specialty - Line of Business Composition The table below provides the line of business composition of the net liability for unpaid claim and claim adjustment expenses for the Specialty segment. As of December 31 (In millions) 2019 Net liability for unpaid claim and claim adjustment expenses: Medical Professional Liability $ 1,429 Other Professional Liability and Management Liability 2,739 Surety 369 Warranty 29 Other 110 Total net liability for unpaid claim and claim adjustment expenses $ 4,676 Specialty - Medical Professional Liability Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year As of December 31, 2019 (In millions, except reported claims data) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 IBNR Cumulative Number of Claims Accident Year 2010 $ 402 $ 412 $ 423 $ 426 $ 415 $ 395 $ 365 $ 360 $ 356 $ 369 $ 1 14,624 2011 429 437 443 468 439 434 437 437 439 2 16,526 2012 464 469 508 498 493 484 493 499 8 17,724 2013 462 479 500 513 525 535 545 27 19,510 2014 450 489 537 530 535 529 16 19,723 2015 433 499 510 494 488 29 18,029 2016 427 487 485 499 63 15,823 2017 412 449 458 127 14,636 2018 404 429 216 13,760 2019 430 364 10,467 Total $ 4,685 $ 853 Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year (In millions) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 Accident Year 2010 $ 10 $ 86 $ 173 $ 257 $ 306 $ 326 $ 337 $ 346 $ 350 $ 353 2011 17 109 208 295 347 375 398 409 414 2012 14 117 221 323 388 427 457 479 2013 17 119 255 355 414 462 495 2014 23 136 258 359 417 472 2015 22 101 230 313 384 2016 18 121 246 339 2017 19 107 235 2018 21 115 2019 17 Total $ 3,303 Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 1,382 Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010 22 Liability for unallocated claim adjustment expenses for accident years presented 25 Total net liability for unpaid claim and claim adjustment expenses $ 1,429 Net strengthening (releases) of prior accident year reserves is presented in the following table. For the years ended December 31 Calendar Year (In millions) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 Total Accident Year 2010 $ 10 $ 11 $ 3 $ (11 ) $ (20 ) $ (30 ) $ (5 ) $ (4 ) $ 13 $ (33 ) 2011 8 6 25 (29 ) (5 ) 3 — 2 10 2012 5 39 (10 ) (5 ) (9 ) 9 6 35 2013 17 21 13 12 10 10 83 2014 39 48 (7 ) 5 (6 ) 79 2015 66 11 (16 ) (6 ) 55 2016 60 (2 ) 14 72 2017 37 9 46 2018 25 25 Total net development for the accident years presented above 65 39 67 Total net development for accident years prior to 2010 (28 ) 9 6 Total unallocated claim adjustment expense development (7 ) (1 ) 2 Total $ 30 $ 47 $ 75 (1) Data presented for these calendar years is required supplemental information, which is unaudited. Specialty - Other Professional Liability and Management Liability Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year As of December 31, 2019 (In millions, except reported claims data) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 IBNR Cumulative Number of Claims Accident Year 2010 $ 828 $ 828 $ 848 $ 848 $ 847 $ 837 $ 824 $ 827 $ 821 $ 821 $ 9 17,891 2011 880 908 934 949 944 911 899 888 885 21 18,738 2012 923 909 887 878 840 846 833 831 18 18,499 2013 884 894 926 885 866 863 850 45 17,928 2014 878 898 885 831 835 854 74 17,553 2015 888 892 877 832 807 120 17,390 2016 901 900 900 904 188 17,890 2017 847 845 813 308 18,015 2018 850 864 460 19,468 2019 837 714 16,722 Total $ 8,466 $ 1,957 Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year (In millions) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 Accident Year 2010 $ 31 $ 204 $ 405 $ 541 $ 630 $ 670 $ 721 $ 752 $ 784 $ 790 2011 71 314 503 605 683 726 781 796 828 2012 56 248 400 573 651 711 755 792 2013 54 249 447 618 702 754 771 2014 51 223 392 515 647 707 2015 60 234 404 542 612 2016 64 248 466 625 2017 57 222 394 2018 54 282 2019 64 Total $ 5,865 Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 2,601 Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010 88 Liability for unallocated claim adjustment expenses for accident years presented 50 Total net liability for unpaid claim and claim adjustment expenses $ 2,739 Net strengthening (releases) of prior accident year reserves is presented in the following table. For the years ended December 31 Calendar Year (In millions) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 Total Accident Year 2010 $ — $ 20 $ — $ (1 ) $ (10 ) $ (13 ) $ 3 $ (6 ) $ — $ (7 ) 2011 28 26 15 (5 ) (33 ) (12 ) (11 ) (3 ) 5 2012 (14 ) (22 ) (9 ) (38 ) 6 (13 ) (2 ) (92 ) 2013 10 32 (41 ) (19 ) (3 ) (13 ) (34 ) 2014 20 (13 ) (54 ) 4 19 (24 ) 2015 4 (15 ) (45 ) (25 ) (81 ) 2016 (1 ) — 4 3 2017 (2 ) (32 ) (34 ) 2018 14 14 Total net development for the accident years presented above (92 ) (76 ) (38 ) Total net development for accident years prior to 2010 (27 ) (44 ) (17 ) Total unallocated claim adjustment expense development (7 ) (7 ) (14 ) Total $ (126 ) $ (127 ) $ (69 ) (1) Data presented for these calendar years is required supplemental information, which is unaudited. Specialty - Surety Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year As of December 31, 2019 (In millions, except reported claims data) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 IBNR Cumulative Number of Claims Accident Year 2010 $ 112 $ 112 $ 111 $ 84 $ 76 $ 66 $ 63 $ 59 $ 61 $ 61 $ — 5,982 2011 120 121 116 87 75 70 66 62 62 2 5,813 2012 120 122 98 70 52 45 39 38 1 5,568 2013 120 121 115 106 91 87 83 3 5,062 2014 123 124 94 69 60 45 4 5,078 2015 131 131 104 79 63 11 4,976 2016 124 124 109 84 36 5,379 2017 120 115 103 54 5,496 2018 114 108 76 5,451 2019 119 102 3,549 Total $ 766 $ 289 Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year (In millions) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 Accident Year 2010 $ 13 $ 34 $ 50 $ 55 $ 57 $ 58 $ 55 $ 52 $ 52 $ 53 2011 19 42 55 58 60 60 56 57 57 2012 5 32 34 35 35 36 37 37 2013 16 40 69 78 78 78 77 2014 7 30 38 36 38 38 2015 7 26 38 40 42 2016 5 37 45 45 2017 23 37 41 2018 5 25 2019 12 Total $ 427 Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 339 Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010 10 Liability for unallocated claim adjustment expenses for accident years presented 20 Total net liability for unpaid claim and claim adjustment expenses $ 369 Net strengthening (releases) of prior accident year reserves is presented in the following table. For the years ended December 31 Calendar Year (In millions) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 Total Accident Year 2010 $ — $ (1 ) $ (27 ) $ (8 ) $ (10 ) $ (3 ) $ (4 ) $ 2 $ — $ (51 ) 2011 1 (5 ) (29 ) (12 ) (5 ) (4 ) (4 ) — (58 ) 2012 2 (24 ) (28 ) (18 ) (7 ) (6 ) (1 ) (82 ) 2013 1 (6 ) (9 ) (15 ) (4 ) (4 ) (37 ) 2014 1 (30 ) (25 ) (9 ) (15 ) (78 ) 2015 — (27 ) (25 ) (16 ) (68 ) 2016 — (15 ) (25 ) (40 ) 2017 (5 ) (12 ) (17 ) 2018 (6 ) (6 ) Total net development for the accident years presented above (82 ) (66 ) (79 ) Total net development for accident years prior to 2010 1 (4 ) (3 ) Total unallocated claim adjustment expense development (3 ) — (10 ) Total $ (84 ) $ (70 ) $ (92 ) (1) Data presented for these calendar years is required supplemental information, which is unaudited. Commercial The following table presents further detail of the development recorded for the Commercial segment. Years ended December 31 (In millions) 2019 2018 2017 Pretax (favorable) unfavorable development: Commercial Auto $ (25 ) $ 1 $ (35 ) General Liability 54 32 (24 ) Workers' Compensation (13 ) (32 ) (63 ) Property and Other (18 ) (26 ) 7 Total pretax (favorable) unfavorable development $ (2 ) $ (25 ) $ (115 ) 2019 Favorable development in commercial auto was primarily due to continued lower than expected severity across accident years 2015 and prior and a decline in bodily injury frequency in accident year 2018. Unfavorable development in general liability was primarily due to higher than expected emergence in mass tort exposures, primarily from accident years 2016, 2015 and prior to 2010. Favorable development in workers’ compensation was due to favorable medical trends driving lower than expected severity in accident years 2012 through 2018. Favorable development in property and other was primarily driven by lower than expected claim severity related to catastrophe events in accident years 2017 and 2018. 2018 Unfavorable development in general liability was driven by higher than expected claim severity in unsupported umbrella in accident years 2013 through 2016. Favorable development in workers’ compensation was driven by lower frequency and severity experience and favorable impacts from California reforms. Favorable development in property and other was driven by lower than expected claim severity in catastrophes in accident year 2017. 2017 Favorable development in commercial auto was primarily due to lower than expected severity in accident years 2013 through 2016, as well as a large favorable recovery on a claim in accident year 2012. Favorable development in general liability was due to lower than expected severity in life sciences. Favorable development in workers’ compensation was primarily related to decreases in frequency and severity in recent accident years, partially attributable to California reforms impacting medical costs. This was partially offset by unfavorable development related to an adverse arbitration ruling on reinsurance recoverables from older accident years as well as the recognition of loss estimates associated with earned premium from a prior exposure year. Commercial - Line of Business Composition The table below provides the line of business composition of the net liability for unpaid claim and claim adjustment expenses for the Commercial segment. As of December 31 (In millions) 2019 Net Claim and claim adjustment expenses: Commercial Auto $ 404 General Liability 3,176 Workers' Compensation 3,932 Property and Other 337 Total net liability for claim and claim adjustment expenses $ 7,849 Commercial - Commercial Auto Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year As of December 31, 2019 (In millions, except reported claims data) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 IBNR Cumulative Number of Claims Accident Year 2010 $ 267 $ 283 $ 287 $ 291 $ 298 $ 293 $ 289 $ 288 $ 288 $ 288 $ 1 48,035 2011 268 281 288 302 300 294 294 294 291 — 47,909 2012 275 289 299 303 307 299 299 297 3 46,288 2013 246 265 265 249 245 245 241 2 39,429 2014 234 223 212 205 205 201 3 33,622 2015 201 199 190 190 183 7 30,418 2016 198 186 186 186 7 30,414 2017 199 198 200 9 30,850 2018 229 227 47 33,959 2019 257 128 31,455 Total $ 2,371 $ 207 Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year (In millions) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 Accident Year 2010 $ 74 $ 141 $ 203 $ 246 $ 271 $ 281 $ 286 $ 287 $ 287 $ 287 2011 79 145 199 248 274 284 287 289 289 2012 78 160 220 259 282 285 290 291 2013 74 135 168 200 225 234 238 2014 64 102 137 166 187 196 2015 52 96 130 153 172 2016 52 93 126 154 2017 58 107 150 2018 66 128 2019 77 Total $ 1,982 Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 389 Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010 1 Liability for unallocated claim adjustment expenses for accident years presented 14 Total net liability for unpaid claim and claim adjustment expenses $ 404 Net strengthening (releases) of prior accident year reserves is presented in the following table. For the years ended December 31 Calendar Year (In millions) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 Total Accident Year 2010 $ 16 $ 4 $ 4 $ 7 $ (5 ) $ (4 ) $ (1 ) $ — $ — $ 21 2011 13 7 14 (2 ) (6 ) — — (3 ) 23 2012 14 10 4 4 (8 ) — (2 ) 22 2013 19 — (16 ) (4 ) — (4 ) (5 ) 2014 (11 ) (11 ) (7 ) — (4 ) (33 ) 2015 (2 ) (9 ) — (7 ) (18 ) 2016 (12 ) — — (12 ) 2017 (1 ) 2 1 2018 (2 ) (2 ) Total net development for the accident years presented above (41 ) (1 ) (20 ) Total net development for accident years prior to 2010 4 1 (4 ) Total unallocated claim adjustment expense development 2 1 (1 ) Total $ (35 ) $ 1 $ (25 ) (1) Data presented for these calendar years is required supplemental information, which is unaudited. Commercial - General Liability Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year As of December 31, 2019 (In millions, except reported claims data) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 IBNR Cumulative Number of Claims Accident Year 2010 $ 646 $ 664 $ 658 $ 709 $ 750 $ 726 $ 697 $ 691 $ 691 $ 690 $ 19 44,229 2011 591 589 631 677 676 681 670 669 667 20 39,361 2012 587 611 639 636 619 635 635 6 |
Legal Proceedings, Contingencie
Legal Proceedings, Contingencies and Guarantees | 12 Months Ended |
Dec. 31, 2019 | |
Legal Proceedings, Commitments and Contingencies, and Guarantees [Abstract] | |
Legal Proceedings, Contingencies and Guarantees | Legal Proceedings, Contingencies and Guarantees The Company is a party to various claims and routine litigation incidental to its business, which, based on the facts and circumstances currently known, are not material to the Company's results of operations or financial position. Guarantees As of December 31, 2019 and 2018 , the Company had recorded liabilities of approximately $5 million related to guarantee and indemnification agreements and management does not believe that any future indemnity claims will be significantly greater than the amounts recorded. The Company has provided guarantees, if the primary obligor fails to perform, to holders of structured settlement annuities issued by a previously owned subsidiary. As of December 31, 2019 , the potential amount of future payments the Company could be required to pay under these guarantees was approximately $1.7 billion , which will be paid over the lifetime of the annuitants. The Company does not believe any payment 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. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2019 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | Reinsurance The Company cedes insurance to reinsurers to limit its maximum loss, provide greater diversification of risk, minimize exposures on larger risks and to exit certain lines of business. The ceding of insurance does not discharge the primary liability of the Company. A credit exposure exists with respect to reinsurance ceded to the extent that any reinsurer is unable to meet its obligations. A collectibility exposure also exists to the extent that the reinsurer disputes the liabilities assumed under reinsurance agreements. Property and casualty reinsurance coverages are tailored to the specific risk characteristics of each product line and the Company's retained amount varies by type of coverage. Reinsurance contracts are purchased to protect specific lines of business such as property and workers' compensation. Corporate catastrophe reinsurance is also purchased for property and workers' compensation exposure. The Company also utilizes facultative reinsurance in certain lines. In addition, the Company assumes reinsurance primarily through Hardy and as a member of various reinsurance pools and associations. The following table presents the amounts receivable from reinsurers. December 31 (In millions) 2019 2018 Reinsurance receivables related to insurance reserves: Ceded claim and claim adjustment expenses $ 3,835 $ 4,019 Ceded future policy benefits 226 233 Reinsurance receivables related to paid losses 143 203 Reinsurance receivables 4,204 4,455 Allowance for uncollectible reinsurance (25 ) (29 ) Reinsurance receivables, net of allowance for uncollectible reinsurance $ 4,179 $ 4,426 The Company has established an allowance for uncollectible reinsurance receivables related to credit risk. The Company reviews the allowance quarterly and adjusts the allowance as necessary to reflect changes in estimates of uncollectible balances. The allowance may also be reduced by write-offs of reinsurance receivable balances. The Company attempts to mitigate its credit risk related to reinsurance by entering into reinsurance arrangements with reinsurers that have credit ratings above certain levels and by obtaining collateral. On a limited basis, the Company may enter into reinsurance agreements with reinsurers that are not rated, primarily captive reinsurers. The primary methods of obtaining collateral are through reinsurance trusts, letters of credit and funds withheld balances. Such collateral, limited by the balance of open recoverables, was approximately $3.2 billion as of December 31, 2019 and 2018 . The Company's largest recoverables from a single reinsurer as of December 31, 2019 , including ceded unearned premium reserves, were approximately $2.0 billion from subsidiaries of Berkshire Hathaway Insurance Group, $289 million from the Palo Verde Insurance Company and $226 million from a subsidiary of Wilton Re. These amounts are substantially collateralized. The recoverable from subsidiaries of the Berkshire Hathaway Insurance Group includes amounts related to third-party reinsurance for which NICO has assumed the credit risk under the terms of the LPT as discussed in Note E to the Consolidated Financial Statements. The effects of reinsurance on earned premiums and written premiums are presented in the following tables. (In millions) Direct Assumed Ceded Net Assumed/ Net % 2019 Earned Premiums Property and casualty $ 11,021 $ 288 $ 4,401 $ 6,908 4.2 % Long term care 470 50 — 520 9.6 % Total earned premiums $ 11,491 $ 338 $ 4,401 $ 7,428 4.6 % 2018 Earned Premiums Property and casualty $ 10,857 $ 305 $ 4,380 $ 6,782 4.5 % Long term care 480 50 — 530 9.4 % Total earned premiums $ 11,337 $ 355 $ 4,380 $ 7,312 4.9 % 2017 Earned Premiums Property and casualty $ 10,447 $ 317 $ 4,315 $ 6,449 4.9 % Long term care 489 50 — 539 9.3 % Total earned premiums $ 10,936 $ 367 $ 4,315 $ 6,988 5.3 % (In millions) Direct Assumed Ceded Net Assumed/ Net % 2019 Written Premiums Property and casualty $ 11,421 $ 281 $ 4,569 $ 7,133 3.9 % Long term care 473 50 — 523 9.6 % Total written premiums $ 11,894 $ 331 $ 4,569 $ 7,656 4.3 % 2018 Written Premiums Property and casualty $ 11,094 $ 310 $ 4,583 $ 6,821 4.5 % Long term care 474 50 — 524 9.5 % Total written premiums $ 11,568 $ 360 $ 4,583 $ 7,345 4.9 % 2017 Written Premiums Property and casualty $ 10,655 $ 327 $ 4,449 $ 6,533 5.0 % Long term care 486 50 — 536 9.3 % Total written premiums $ 11,141 $ 377 $ 4,449 $ 7,069 5.3 % Included in the direct and ceded earned premiums for the years ended December 31, 2019 , 2018 and 2017 are $3,578 million , $3,740 million and $3,864 million related to property business that is 100% reinsured under a significant third-party captive program. The third-party captives that participate in this program are affiliated with the non-insurance company policyholders, therefore this program provides a means for the policyholders to self-insure this property risk. The Company receives and retains a ceding commission. Long term care premiums are from long duration contracts; property and casualty premiums are from short duration contracts. Insurance claims and policyholders' benefits reported on the Consolidated Statements of Operations are net of estimated reinsurance recoveries of $2,733 million , $2,836 million and $3,085 million for the years ended December 31, 2019 , 2018 and 2017 , including $2,080 million , $1,927 million and $2,541 million |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt is composed of the following long term obligations. December 31 (In millions) 2019 2018 Senior notes of CNAF: 5.875%, face amount of $500, due August 15, 2020 (1) $ — $ 499 5.750%, face amount of $400, due August 15, 2021 399 399 3.950%, face amount of $550, due May 15, 2024 548 547 4.500%, face amount of $500, due March 1, 2026 498 498 3.450%, face amount of $500, due August 15, 2027 496 495 3.900%, face amount of $500, due May 1, 2029 496 — Debenture of CNAF, 7.250%, face amount of $243, due November 15, 2023 242 242 Total $ 2,679 $ 2,680 (1) The Company redeemed these notes in the second quarter of 2019. CCC is a member of the Federal Home Loan Bank of Chicago (FHLBC). FHLBC membership provides participants with access to additional sources of liquidity through various programs and services. As a requirement of membership in the FHLBC, CCC held $5 million of FHLBC stock as of December 31, 2019 giving it immediate access to approximately $111 million of additional liquidity. As of December 31, 2019 and 2018 , CCC had no outstanding borrowings from the FHLBC. During the fourth quarter of 2019, the Company amended and restated its existing credit agreement with a syndicate of banks. The agreement provides a five -year $250 million senior unsecured revolving credit facility which is intended to be used for general corporate purposes. At the Company's election, the commitments under the agreement may be increased from time to time up to an additional aggregate amount of $100 million , and two one-year extensions are available prior to any anniversary of the closing date, each subject to applicable consents. Under the agreement, the Company is required to pay a facility fee which will adjust automatically in the event of a change in the Company's financial ratings. The agreement includes several covenants, including maintenance of a minimum consolidated net worth and a specified ratio of consolidated indebtedness to consolidated total capitalization. The minimum consolidated net worth, as defined, at December 31, 2019 , was $8.7 billion . As of December 31, 2019 and 2018 , the Company had no outstanding borrowings under the credit agreement. The Company's debt obligations contain customary covenants for investment grade issuers. The Company was in compliance with all covenants as of and for the years ended December 31, 2019 and 2018 . The combined aggregate maturities for debt as of December 31, 2019 are presented in the following table. (In millions) 2020 $ — 2021 400 2022 — 2023 243 2024 550 Thereafter 1,500 Less discount (14 ) Total $ 2,679 |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans Pension and Postretirement Health Care Benefit Plans CNA sponsors noncontributory defined benefit pension plans, primarily through the CNA Retirement Plan, covering certain eligible employees. These plans are closed to new entrants. CNA's funding policy for defined benefit pension plans is to make contributions in accordance with applicable governmental regulatory requirements with consideration of the funded status of the plans. Effective January 1, 2000, the CNA Retirement Plan was closed to new participants. Existing participants at that time were given a choice to either continue to accrue benefits under the CNA Retirement Plan or to cease accruals effective December 31, 1999. Employees who chose to continue to accrue benefits under the plan received benefits in accordance with plan provisions through June 30, 2015 as discussed further below. Participants who elected to cease accruals effective December 31, 1999 received the present value of their accrued benefit in an accrued pension account that is credited with interest based on the annual rate of interest on 30-year Treasury securities. These employees also receive certain enhanced employer contributions in the CNA 401(k) Plus Plan. Effective June 30, 2015, the Company eliminated future benefit accruals associated with the CNA Retirement Plan. Participants continuing to accrue benefits under the CNA Retirement Plan at that time are entitled to an accrued benefit payable based on their eligible compensation and accrued service through June 30, 2015. These affected participants now also receive enhanced employer contributions in the CNA 401(k) Plus Plan similar to participants who elected to cease accruals effective December 31, 1999. Employees who elected to cease accruals effective December 31, 1999 were not affected by this curtailment. CNA provides certain postretirement health care benefits to eligible retired employees, their covered dependents and their beneficiaries primarily through the CNA Health and Group Benefits Program. These postretirement benefits have largely been eliminated for active employees. The following table presents a reconciliation of benefit obligations and plan assets. Pension Benefits Postretirement Benefits (In millions) 2019 2018 2019 2018 Benefit obligation as of January 1 $ 2,466 $ 2,749 $ 9 $ 11 Changes in benefit obligation: Service cost — — — — Interest cost 100 93 — — Participants' contributions — — 4 3 Actuarial (gain) loss 261 (187 ) 1 — Benefits paid (169 ) (166 ) (6 ) (5 ) Foreign currency translation and other 3 (7 ) — — Settlements — (16 ) — — Benefit obligation as of December 31 2,661 2,466 8 9 Fair value of plan assets as of January 1 2,025 2,261 — — Change in plan assets: Actual return on plan assets 292 (69 ) — — Company contributions 134 23 2 2 Participants' contributions — — 4 3 Benefits paid (169 ) (166 ) (6 ) (5 ) Foreign currency translation and other 3 (8 ) — — Settlements — (16 ) — — Fair value of plan assets as of December 31 2,285 2,025 — — Funded status $ (376 ) $ (441 ) $ (8 ) $ (9 ) Amounts recognized on the Consolidated Balance Sheets as of December 31: Other assets $ 5 $ 9 $ — $ — Other liabilities (381 ) (450 ) (8 ) (9 ) Net amount recognized $ (376 ) $ (441 ) $ (8 ) $ (9 ) Amounts recognized in Accumulated other comprehensive income, not yet recognized in net periodic cost (benefit): Prior service credit $ — $ — $ — $ — Net actuarial (gain) loss 1,056 984 (2 ) (3 ) Net amount recognized $ 1,056 $ 984 $ (2 ) $ (3 ) The accumulated benefit obligation for all defined benefit pension plans was $2,661 million and $2,465 million as of December 31, 2019 and 2018 . Changes for years ended December 31, 2019 and 2018 include actuarial (gains) losses of $261 million and $(187) million respectively, primarily driven by changes in the discount rate used to determine defined benefit pension obligations. The components of net periodic pension cost (benefit) are presented in the following table. Years ended December 31 (In millions) 2019 2018 2017 Net periodic pension cost (benefit) Service cost $ — $ — $ — Non-service cost (benefit): Interest cost on projected benefit obligation 100 93 103 Expected return on plan assets (142 ) (159 ) (154 ) Amortization of net actuarial (gain) loss 39 37 35 Settlement loss — 6 9 Total non-service cost (benefit) (3 ) (23 ) (7 ) Total net periodic pension cost (benefit) $ (3 ) $ (23 ) $ (7 ) For the years ended December 31, 2019 , 2018 and 2017 , the Company recognized $1 million , $8 million and $2 million of non-service benefit in Insurance claims and policyholders' benefits and $2 million , $15 million and $5 million of non-service benefit in Other operating expenses related to net periodic pension costs (benefit). The amounts recognized in Other comprehensive income are presented in the following table. Years ended December 31 (In millions) 2019 2018 2017 Pension and postretirement benefits Amounts arising during the period $ (112 ) $ (41 ) $ (31 ) Settlement — 6 9 Reclassification adjustment relating to prior service credit — (2 ) (2 ) Reclassification adjustment relating to actuarial loss 39 36 35 Total increase (decrease) in Other comprehensive income $ (73 ) $ (1 ) $ 11 Actuarial assumptions used for the CNA Retirement Plan and CNA Health and Group Benefits Program to determine benefit obligations are presented in the following table. The interest crediting rate is the weighted average interest rate applied to the individual pension balances for employees who elected to cease accruals effective December 31, 1999. December 31 2019 2018 Pension benefits Discount rate 3.150 % 4.250 % Interest crediting rate 5.000 5.000 Postretirement benefits Discount rate 2.300 % 3.550 % Actuarial assumptions used for the CNA Retirement Plan and CNA Health and Group Benefits Program to determine net cost or benefit are presented in the following table. Years ended December 31 2019 2018 2017 Pension benefits Discount rate 4.250 % 3.550 % 3.950 % Expected long term rate of return 7.500 7.500 7.500 Interest crediting rate 5.000 5.000 5.000 Postretirement benefits Discount rate 3.550 % 2.750 % 2.750 % To determine the discount rate assumption as of the year-end measurement date for the CNA Retirement Plan and CNA Health and Group Benefits Program, the Company considered the estimated timing of plan benefit payments and available yields on high quality fixed income debt securities. For this purpose, high quality is considered a rating of Aa or better by Moody's Investors Service, Inc. (Moody's) or a rating of AA or better from Standard & Poor's (S&P). The Company reviewed several yield curves constructed using the cash flow characteristics of the plans as well as bond indices as of the measurement date. The trend of those data points was also considered. In determining the expected long term rate of return on plan assets assumption for the CNA Retirement Plan, CNA considered the historical performance of the benefit plan investment portfolio as well as long term market return expectations based on the investment mix of the portfolio and the expected investment horizon. The CNA Health and Group Benefits Program has limited its share of the health care trend rate to a cost-of-living adjustment of 4% per year. For all participants, the employer subsidy on health care costs will not increase by more than 4% per year. As a result, the assumed health care cost trend rate used in measuring the accumulated postretirement benefit obligation for the CNA Health and Group Benefits Program was 4% per year in 2019 , 2018 and 2017 . CNA employs a total return approach whereby a mix of equity, limited partnerships and fixed maturity securities are used to maximize the long term return of retirement plan assets for a prudent level of risk and to manage cash flows according to plan requirements. The target allocation of plan assets is 40% to 60% invested in equity securities and limited partnerships, with the remainder primarily invested in fixed maturity securities. Alternative investments, including limited partnerships, are used to enhance risk adjusted long term returns while improving portfolio diversification. The intent of this strategy is to minimize the Company's expense related to funding the plan by generating investment returns that exceed the growth of the plan liabilities over the long run. Risk tolerance is established after careful consideration of the plan liabilities, plan funded status and corporate financial conditions. As of December 31, 2019 , the Plan had committed approximately $108 million to future capital calls from various third-party limited partnership investments in exchange for an ownership interest in the related partnerships. Derivatives may be used to gain market exposure in an efficient and timely manner. Investment risk is measured and monitored on an ongoing basis through annual liability measurements, periodic asset/liability studies and quarterly investment portfolio reviews. Pension plan assets measured at fair value on a recurring basis as well as cash are presented in the following tables. December 31, 2019 (In millions) Level 1 Level 2 Level 3 Total Assets Fixed maturity securities: Corporate bonds and other $ — $ 587 $ 10 $ 597 States, municipalities and political subdivisions — 51 — 51 Asset-backed — 154 — 154 Total fixed maturity securities — 792 10 802 Equity securities 458 128 — 586 Short term investments 55 7 — 62 Other assets — 9 — 9 Cash 13 — — 13 Total assets measured at fair value $ 526 $ 936 $ 10 1,472 Total limited partnerships measured at net asset value (1) 813 Total $ 2,285 December 31, 2018 (In millions) Level 1 Level 2 Level 3 Total Assets Fixed maturity securities: Corporate bonds and other $ — $ 472 $ 10 $ 482 States, municipalities and political subdivisions — 58 — 58 Asset-backed — 165 — 165 Total fixed maturity securities — 695 10 705 Equity securities 331 110 — 441 Short term investments 27 54 — 81 Other assets — 9 — 9 Cash — — — — Total assets measured at fair value $ 358 $ 868 $ 10 1,236 Total limited partnerships measured at net asset value (1) 789 Total $ 2,025 (1) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table for these investments are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Plan's Statement of Financial Position. The limited partnership investments held within the plan are recorded at fair value, which represents the plan's share of net asset value of each partnership, as determined by the general partner. Limited partnerships comprising 79% and 81% of the carrying value as of December 31, 2019 and 2018 employ hedge fund strategies that generate returns through investing in marketable securities in the public fixed income and equity markets and the remainder were primarily invested in private debt and equity. Within hedge fund strategies, approximately 62% were equity related, 31% pursued a multi-strategy approach and 7% were focused on distressed investments as of December 31, 2019 . For a discussion of the fair value levels and the valuation methodologies used to measure fixed maturity securities, equities, derivatives and short term investments, see Note C to the Consolidated Financial Statements. The table below presents the estimated future minimum benefit payments to participants as of December 31, 2019 . (In millions) Pension Benefits Postretirement Benefits 2020 $ 178 $ 1 2021 176 1 2022 180 1 2023 178 1 2024 178 1 2025-2029 841 2 In 2020 , CNA expects to contribute $8 million to its pension plans and $1 million to its postretirement health care benefit plans. Savings Plans CNA sponsors savings plans, which are generally contributory plans that allow most employees to contribute a maximum of 50% of their eligible compensation, subject to certain limitations prescribed by the IRS. The Company contributes matching amounts to participants, amounting to 70% of the first 6% ( 35% of the first 6% in the first year of employment) of eligible compensation contributed by the employee. Matching contributions vest ratably over participants first five years of service. Eligible employees also receive a Company contribution of 3% or 5% of their eligible compensation, depending on their age. In addition, these employees are eligible to receive additional discretionary contributions of up to 2% of eligible compensation and an additional Company match of up to 80% of the first 6% of eligible compensation contributed by the employee. These additional contributions are made at the discretion of management and are contributed to participant accounts in the first quarter of the year following management's determination of the discretionary amounts. Matching contributions vest ratably over participants first five years of service. Benefit expense for the Company's savings plans was $71 million , $71 million and $76 million for the years ended December 31, 2019 , 2018 and 2017 . |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The current CNAF Incentive Compensation Plan (the Plan) authorizes the grant of stock-based compensation to certain management personnel for up to 11 million shares of CNAF common stock. The Plan currently provides for awards of stock options, stock appreciation rights (SARs), restricted shares, restricted stock units (RSUs), performance-based RSUs and performance share units. The number of shares available for the granting of stock-based compensation under the Plan as of December 31, 2019 was approximately 2.3 million . In 2016, CNA adopted the Annual Performance Share Plan (PSP). The PSP provides officers with an opportunity to earn an award based upon attainment of specific performance goals achieved over a one-year performance period. Awards are granted at the beginning of each performance year and are generally subject to a two-year cliff vesting period after the Company’s annual performance has been determined. Prior to the PSP, CNA issued performance share units under the Long Term Incentive Plan (LTI Plan). The LTI Plan had a three-year performance period and was settled during 2018. In both plans, the performance share units become payable within a range of 0% to 200% of the number of performance share units initially granted. Related to the transition to the PSP, CNA granted Special Supplemental Equity Awards (SSE) in 2016, which consisted of restricted stock units that fully vested in 2018. Additionally, the Company may grant RSUs under the Plan in certain circumstances. These awards generally vest over a one to three-year service period following the grant date. Stock-based compensation that is not fully vested prior to termination is generally forfeited upon termination, except in cases of retirement, death or disability, and as otherwise provided by contractual obligations. The fair value of stock-based compensation awards is based on the market value of the Company's common stock as of the date of grant, except for awards made to foreign participants, which is based on the current market value of the Company’s common stock. Payments made under the PSP and SSE are made entirely in shares of common stock granted under the Plan, except for awards made to foreign participants, which are paid in cash. The Company recorded stock-based compensation expense related to the Plan of $34 million , $32 million and $36 million for the years ended December 31, 2019 , 2018 and 2017 . The related income tax benefit recognized was $8 million , $8 million and $18 million for the years ended December 31, 2019 , 2018 and 2017 . The compensation cost not yet recognized was $38 million , and the weighted average period over which it is expected to be recognized is 1.7 years as of December 31, 2019 . The total fair value of RSUs and performance shares that vested during the years ended December 31, 2019 , 2018 and 2017 was $31 million , $16 million and $34 million , respectively. The weighted average grant date fair value for RSUs and performance shares granted during the years ended December 31, 2019 , 2018 and 2017 was $43.86 , $51.64 and $44.20 , respectively. The following table presents activity for non-vested RSUs and performance share units under the Plan in 2019 . Number of Awards Weighted Average Grant Date Fair Value Balance as of January 1, 2019 2,204,148 $ 43.98 Awards granted 1,051,053 43.86 Awards vested (801,504 ) 36.81 Awards forfeited, canceled or expired (379,425 ) 45.98 Performance-based adjustment 40,914 44.86 Balance as of December 31, 2019 2,115,186 46.25 |
Other Intangible Assets
Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets, Gross (Excluding Goodwill) [Abstract] | |
Other Intangible Assets | Other Intangible Assets Other intangible assets are presented in the following table. December 31 2019 2018 (In millions) Economic Useful Life Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Finite-lived intangible assets: Trade name 8 years $ 7 $ 6 $ 6 $ 5 Distribution channel 15 years 11 5 10 4 Total finite-lived intangible assets 18 11 16 9 Indefinite-lived intangible assets: Syndicate capacity 46 45 Agency force 16 16 Total indefinite-lived intangible assets 62 61 Total other intangible assets $ 80 $ 11 $ 77 $ 9 The Company's other intangible assets primarily relate to the purchase of Hardy, and the amortization of the finite-lived intangible assets is included in the Statement of Operations for the International segment. For the years ended December 31, 2019 , 2018 and 2017 amortization expense of $1 million , $1 million and $2 million was included in Other operating expenses. The gross carrying amounts and accumulated amortization in the table above may change from period to period as a result of foreign currency translation. Estimated future annual amortization expense for other intangible assets is $1 million in each of the years 2020 through 2024. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases, Operating [Abstract] | |
Leases | Leases Total lease expense was $55 million for the year ended December 31, 2019 , which includes operating lease expense of $37 million and variable lease expense of $18 million . Prior to the adoption of the new leasing standard, lease expense for the years ended December 31, 2018 and 2017 was $62 million and $66 million . Cash paid for amounts included in operating lease liabilities was $34 million for the year ended December 31, 2019 . Operating lease ROU assets obtained in exchange for lease obligations was $12 million for the year ended December 31, 2019 . The following table presents operating lease ROU assets and lease liabilities. (In millions) December 31, 2019 Operating lease ROU assets $ 220 Operating lease liabilities 301 The following table presents the maturities of operating lease liabilities as of December 31, 2019 . (In millions) Operating Leases 2020 $ 38 2021 43 2022 40 2023 34 2024 29 Thereafter 184 Total lease payments 368 Less: Discount (67 ) Total operating lease liabilities $ 301 The following table presents the weighted average remaining lease term for operating leases and weighted average discount rate used in calculating operating lease right-of-use assets. December 31, 2019 Weighted average remaining lease term 10.8 years Weighted average discount rate 3.4 % The table below presents the expected future minimum lease payments to be made under non-cancelable operating leases as of December 31, 2018 . (In millions) Future Minimum Lease Payments 2019 $ 35 2020 39 2021 41 2022 38 2023 32 Thereafter 200 Total $ 385 |
Stockholders' Equity and Statut
Stockholders' Equity and Statutory Accounting Practices | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity and Statutory Accounting Practices [Abstract] | |
Stockholders' Equity And Statutory Accounting Practices | Stockholders’ Equity and Statutory Accounting Practices Common Stock Dividends There are no restrictions on the retained earnings or net income of CNAF with regard to payment of dividends to its stockholders. However, given the holding company nature of CNAF, its ability to pay a dividend is significantly dependent on the receipt of dividends from its subsidiaries, particularly CCC, which directly or indirectly owns all significant subsidiaries. See the Statutory Accounting Practices section below for a discussion of the regulatory restrictions on CCC's availability to pay dividends. CNAF's ability to pay dividends may be indirectly limited by the minimum consolidated net worth covenant in the Company's line of credit agreement. See Note H to the Consolidated Financial Statements for further discussion of the Company's debt obligations. Statutory Accounting Practices CNAF’s insurance subsidiaries are domiciled in various jurisdictions. These subsidiaries prepare statutory financial statements in accordance with accounting practices prescribed or permitted by the respective jurisdictions’ insurance regulators. Domestic prescribed statutory accounting practices are set forth in a variety of publications of the National Association of Insurance Commissioners (NAIC) as well as state laws, regulations and general administrative rules. These statutory accounting principles vary in certain respects from GAAP. In converting from statutory accounting principles to GAAP, the more significant adjustments include deferral of policy acquisition costs and the inclusion of net unrealized holding gains or losses in stockholders’ equity relating to certain fixed maturity securities. The Company has a prescribed practice as it relates to the accounting under Statement of Statutory Accounting Principles No. 62R (SSAP No. 62R), Property and Casualty Reinsurance , paragraphs 67 and 68 in conjunction with the 2010 LPT with NICO which is further discussed in Note E to the Consolidated Financial Statements. The prescribed practice allows the Company to aggregate all third party A&EP reinsurance balances administered by NICO in Schedule F and to utilize the LPT as collateral for the underlying third party reinsurance balances for purposes of calculating the statutory reinsurance penalty. This prescribed practice increased statutory capital and surplus by $91 million and $88 million at December 31, 2019 and 2018 . The payment of dividends by CNAF's insurance subsidiaries without prior approval of the insurance department of each subsidiary’s domiciliary jurisdiction is generally limited by formula. Dividends in excess of these amounts are subject to prior approval by the respective insurance regulator. Dividends from CCC are subject to the insurance holding company laws of the State of Illinois, the domiciliary state of CCC. Under these laws, ordinary dividends, or dividends that do not require prior approval by the Illinois Department of Insurance (the Department), are determined based on the greater of the prior year's statutory net income or 10% of statutory surplus as of the end of the prior year, as well as the timing and amount of dividends paid in the preceding twelve months. Additionally, ordinary dividends may only be paid from earned surplus, which is calculated by removing unrealized gains from unassigned surplus. As of December 31, 2019 , CCC is in a positive earned surplus position. The maximum allowable dividend CCC could pay during 2020 that would not be subject to the Department’s prior approval is $1,078 million , less dividends paid during the preceding twelve months measured at that point in time. CCC paid dividends of $1,065 million in 2019 . The actual level of dividends paid in any year is determined after an assessment of available dividend capacity, holding company liquidity and cash needs as well as the impact the dividends will have on the statutory surplus of the applicable insurance company. Combined statutory capital and surplus and statutory net income (loss) for the Combined Continental Casualty Companies are presented in the table below, determined in accordance with accounting practices prescribed or permitted by insurance and/or other regulatory authorities Statutory Capital and Surplus Statutory Net Income (Loss) December 31 Years ended December 31 (In millions) 2019 (1) 2018 2019 (1) 2018 2017 Combined Continental Casualty Companies $ 10,787 $ 10,411 $ 1,062 $ 1,405 $ 1,029 (1) Information derived from the statutory-basis financial statements to be filed with insurance regulators. CNAF’s domestic insurance subsidiaries are subject to risk-based capital (RBC) requirements. RBC is a method developed by the NAIC to determine the minimum amount of statutory capital appropriate for an insurance company to support its overall business operations in consideration of its size and risk profile. The formula for determining the amount of RBC specifies various factors, weighted based on the perceived degree of risk, which are applied to certain financial balances and financial activity. The adequacy of a company's actual capital is evaluated by a comparison to the RBC results, as determined by the formula. Companies below minimum RBC requirements are classified within certain levels, each of which requires specified corrective action. The statutory capital and surplus presented above for CCC was approximately 291% and 266% of company action level RBC as of December 31, 2019 and 2018 . Company action level RBC is the level of RBC which triggers a heightened level of regulatory supervision. The statutory capital and surplus of the Company's foreign insurance subsidiaries, which is not significant to the overall statutory capital and surplus, also met or exceeded their respective regulatory and other capital requirements. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) by Component | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) by Component | Accumulated Other Comprehensive Income (Loss) by Component The tables below display 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 January 1, 2019 $ 16 $ 61 $ (775 ) $ (180 ) $ (878 ) Other comprehensive income (loss) before reclassifications (13 ) 957 (89 ) 39 894 Amounts reclassified from accumulated other comprehensive income (loss) net of tax (expense) benefit of $3, $(1), $8, $- and $10 (12 ) 8 (31 ) — (35 ) Other comprehensive income (loss) net of tax (expense) benefit of $-, $(255), $15, $- and $(240) (1 ) 949 (58 ) 39 929 Balance as of December 31, 2019 $ 15 $ 1,010 $ (833 ) $ (141 ) $ 51 (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, 2018, as previously reported $ 25 $ 750 $ (645 ) $ (98 ) $ 32 Cumulative effect adjustment from accounting change for adoption of ASU 2018-02 5 137 (130 ) — 12 Cumulative effect adjustment from accounting change for adoption of ASU 2016-01 net of tax (expenses) benefit of $-, $8, $-, $- and $8 — (28 ) — — (28 ) Balance as of January 1, 2018 30 859 (775 ) (98 ) 16 Other comprehensive income (loss) before reclassifications (7 ) (801 ) (32 ) (82 ) (922 ) Amounts reclassified from accumulated other comprehensive income (loss) net of tax (expense) benefit of $(2), $2, $8, $- and $8 7 (3 ) (32 ) — (28 ) Other comprehensive income (loss) net of tax (expense) benefit of $4, $211, $1, $- and $216 (14 ) (798 ) — (82 ) (894 ) Balance as of December 31, 2018 $ 16 $ 61 $ (775 ) $ (180 ) $ (878 ) Amounts reclassified from Accumulated other comprehensive income (loss) shown above are reported in Net income (loss) as follows: Component of AOCI Consolidated Statements of Operations Line Item Affected by Reclassifications Net unrealized gains (losses) on investments with OTTI losses Net investment gains (losses) Net unrealized gains (losses) on other investments Net investment gains (losses) Pension and postretirement benefits Other operating expenses and Insurance claims and policyholders' benefits |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The Company's property and casualty commercial insurance operations are managed and reported in three business segments: Specialty, Commercial and International. These three segments are collectively referred to as Property & Casualty Operations. Specialty provides management and professional liability and other coverages through property and casualty products and services using a network of brokers, independent agencies and managing general underwriters. Commercial works with a network of brokers and independent agents to market a broad range of property and casualty insurance products and services to small, middle-market and large businesses. The International segment underwrites property and casualty coverages on a global basis through two insurance companies based in the United Kingdom (U.K.) and Luxembourg, a branch operation in Canada as well as through our Lloyd's syndicate. The Company's operations outside of Property & Casualty Operations are managed and reported in two segments: Life & Group and Corporate & Other. Life & Group primarily includes the results of the long term care business that is in run-off. Corporate & Other primarily includes certain corporate expenses, including interest on corporate debt, and the results of certain property and casualty business in run-off, including CNA Re and A&EP. The accounting policies of the segments are the same as those described in Note A to the Consolidated Financial Statements. The Company manages most of its assets on a legal entity basis, while segment operations are generally conducted across legal entities. As such, only Insurance and Reinsurance receivables, Insurance reserves, Deferred acquisition costs, Goodwill and Deferred non-insurance warranty acquisition expense and revenue are readily identifiable for 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 Net investment gains or losses are allocated primarily based on each segment's net carried insurance reserves, as adjusted. All significant intersegment income and expense have been eliminated. Income taxes have been allocated on the basis of the taxable income of the segments. Approximately 8.8% , 9.3% and 7.7% of the Company's direct written premiums were derived from outside the United States for the years ended December 31, 2019 , 2018 and 2017 . 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. The performance of the Company's insurance operations is monitored by management through core income (loss), which is derived from certain income statement amounts. 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. Core income (loss) is calculated by excluding from net income (loss) the after-tax effects of i) net investment gains (losses), ii) income or loss from discontinued operations, iii) any cumulative effects of changes in accounting guidance and iv) deferred tax asset and liability remeasurement as a result of an enacted U.S. Federal tax rate change. The calculation of core income (loss) excludes net investment gains or losses because net investment gains or losses are generally driven by economic factors that are not reflective of our primary operations. The Company's results of operations and selected balance sheet items by segment are presented in the following tables. Year ended December 31, 2019 Specialty Commercial International Life & Group Corporate & Other (In millions) Eliminations Total Net written premiums $ 2,848 $ 3,315 $ 971 $ 523 $ 1 $ (2 ) $ 7,656 Operating revenues Net earned premiums $ 2,773 $ 3,162 $ 974 $ 520 $ 1 $ (2 ) $ 7,428 Net investment income 556 654 63 820 25 — 2,118 Non-insurance warranty revenue 1,161 — — — — — 1,161 Other revenues 1 29 — — 6 (5 ) 31 Total operating revenues 4,491 3,845 1,037 1,340 32 (7 ) 10,738 Claims, benefits and expenses Net incurred claims and benefits 1,595 2,130 624 1,416 18 — 5,783 Policyholders’ dividends 5 18 — — — — 23 Amortization of deferred acquisition costs 610 537 236 — — — 1,383 Non-insurance warranty expense 1,082 — — — — — 1,082 Other insurance related expenses 292 505 130 115 (2 ) (2 ) 1,038 Other expenses 48 32 8 8 144 (5 ) 235 Total claims, benefits and expenses 3,632 3,222 998 1,539 160 (7 ) 9,544 Core income (loss) before income tax 859 623 39 (199 ) (128 ) — 1,194 Income tax (expense) benefit on core income (loss) (188 ) (134 ) (9 ) 90 26 — (215 ) Core income (loss) $ 671 $ 489 $ 30 $ (109 ) $ (102 ) $ — 979 Net investment gains (losses) 29 Income tax (expense) benefit on net investment gains (losses) (8 ) Net investment gains (losses), after tax 21 Net income $ 1,000 December 31, 2019 (In millions) Reinsurance receivables $ 575 $ 855 $ 247 $ 385 $ 2,142 $ — $ 4,204 Insurance receivables 971 1,210 284 16 — — 2,481 Deferred acquisition costs 311 257 94 — — — 662 Goodwill 117 — 30 — — — 147 Deferred non-insurance warranty acquisition expense 2,840 — — — — — 2,840 Insurance reserves Claim and claim adjustment expenses 5,238 8,656 1,876 3,716 2,234 — 21,720 Unearned premiums 2,337 1,626 495 125 — — 4,583 Future policy benefits — — — 12,311 — — 12,311 Deferred non-insurance warranty revenue 3,779 — — — — — 3,779 Year ended December 31, 2018 Specialty Commercial International Life & Group Corporate & Other (In millions) Eliminations Total Net written premiums $ 2,744 $ 3,060 $ 1,018 $ 524 $ — $ (1 ) $ 7,345 Operating revenues Net earned premiums $ 2,732 $ 3,050 $ 1,001 $ 530 $ — $ (1 ) $ 7,312 Net investment income 439 500 57 801 20 — 1,817 Non-insurance warranty revenue 1,007 — — — — — 1,007 Other revenues 2 28 1 2 19 (2 ) 50 Total operating revenues 4,180 3,578 1,059 1,333 39 (3 ) 10,186 Claims, benefits and expenses Net incurred claims and benefits 1,526 2,053 699 1,218 51 — 5,547 Policyholders’ dividends 5 20 — — — — 25 Amortization of deferred acquisition costs 599 505 231 — — — 1,335 Non-insurance warranty expense 923 — — — — — 923 Other insurance related expenses 279 505 135 122 (1 ) (1 ) 1,039 Other expenses 46 43 14 7 193 (2 ) 301 Total claims, benefits and expenses 3,378 3,126 1,079 1,347 243 (3 ) 9,170 Core income (loss) before income tax 802 452 (20 ) (14 ) (204 ) — 1,016 Income tax (expense) benefit on core income (loss) (173 ) (95 ) 1 57 39 — (171 ) Core income (loss) $ 629 $ 357 $ (19 ) $ 43 $ (165 ) $ — 845 Net investment gains (losses) (52 ) Income tax (expense) benefit on net investment gains (losses) 14 Net investment gains (losses), after tax (38 ) Net deferred tax asset remeasurement 6 Net income $ 813 December 31, 2018 (In millions) Reinsurance receivables $ 649 $ 795 $ 250 $ 414 $ 2,347 $ — $ 4,455 Insurance receivables 947 1,277 284 9 (152 ) — 2,365 Deferred acquisition costs 308 230 95 — — — 633 Goodwill 117 — 29 — — — 146 Deferred non-insurance warranty acquisition expense 2,513 — — — — — 2,513 Insurance reserves Claim and claim adjustment expenses 5,465 8,743 1,750 3,601 2,425 — 21,984 Unearned premiums 2,132 1,454 475 122 — — 4,183 Future policy benefits — — — 10,597 — — 10,597 Deferred non-insurance warranty revenue 3,402 — — — — — 3,402 Year ended December 31, 2017 Specialty Commercial Life & Group Corporate & Other (In millions) International Eliminations Total Net written premiums $ 2,731 $ 2,922 $ 881 $ 536 $ — $ (1 ) $ 7,069 Operating revenues Net earned premiums $ 2,712 $ 2,881 $ 857 $ 539 $ — $ (1 ) $ 6,988 Net investment income 522 658 52 782 20 — 2,034 Non-insurance warranty revenue 390 — — — — — 390 Other revenues 1 32 — 2 2 — 37 Total operating revenues 3,625 3,571 909 1,323 22 (1 ) 9,449 Claims, benefits and expenses Net incurred claims and benefits 1,533 1,930 575 1,269 (19 ) — 5,288 Policyholders’ dividends 4 18 — — — — 22 Amortization of deferred acquisition costs 590 481 162 — — — 1,233 Non-insurance warranty expense 299 — — — — — 299 Other insurance related expenses 279 530 162 129 (1 ) (1 ) 1,098 Other expenses 43 57 (7 ) 7 192 — 292 Total claims, benefits and expenses 2,748 3,016 892 1,405 172 (1 ) 8,232 Core income (loss) before income tax 877 555 17 (82 ) (150 ) — 1,217 Income tax (expense) benefit on core income (loss) (295 ) (186 ) (9 ) 132 60 — (298 ) Core income (loss) $ 582 $ 369 $ 8 $ 50 $ (90 ) $ — 919 Net investment gains (losses) 93 Income tax (expense) benefit on net investment gains (losses) (30 ) Net investment gains (losses), after tax 63 Net deferred tax asset remeasurement (83 ) Net income $ 899 The following table presents operating revenue by line of business for each reportable segment. Years ended December 31 (In millions) 2019 2018 2017 Specialty Management & Professional Liability $ 2,572 $ 2,440 $ 2,533 Surety 596 571 541 Warranty & Alternative Risks (1) 1,323 1,169 551 Specialty revenues 4,491 4,180 3,625 Commercial Middle Market 2,249 2,045 1,965 Small Business 469 472 480 Other Commercial Insurance 1,127 1,061 1,126 Commercial revenues 3,845 3,578 3,571 International Canada 277 255 224 Europe 363 363 326 Hardy 397 441 359 International revenues 1,037 1,059 909 Life & Group revenues 1,340 1,333 1,323 Corporate & Other revenues 32 39 22 Eliminations (7 ) (3 ) (1 ) Total operating revenues 10,738 10,186 9,449 Net investment gains (losses) 29 (52 ) 93 Total revenues $ 10,767 $ 10,134 $ 9,542 (1) As of January 1, 2018, the Company adopted ASU 2014-09 Revenue Recognition (Topic 606): Revenue from Contracts with Customers. See Note A to the Consolidated Financial Statements for additional information. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) The following tables present unaudited quarterly financial data. 2019 (In millions, except per share data) First Second Third Fourth Full Year Revenues $ 2,695 $ 2,610 $ 2,685 $ 2,777 $ 10,767 Net income (loss) (1) 342 278 107 273 1,000 Basic earnings (loss) per share (3) 1.26 1.03 0.39 1.00 3.68 Diluted earnings (loss) per share (3) $ 1.25 $ 1.02 $ 0.39 $ 1.00 $ 3.67 2018 (In millions, except per share data) First Second Third Fourth Full Year Revenues $ 2,535 $ 2,574 $ 2,622 $ 2,403 $ 10,134 Net income (loss) (2) 291 270 336 (84 ) 813 Basic earnings (loss) per share (3) 1.07 0.99 1.24 (0.31 ) 2.99 Diluted earnings (loss) per share (3) $ 1.07 $ 0.99 $ 1.23 $ (0.31 ) $ 2.98 (1) Net income (loss) in the third quarter of 2019 included a $170 million charge related to recognition of an active life reserve premium deficiency as a result of the third quarter 2019 GPV. (2) Net income (loss) in the fourth quarter of 2018 included a loss on limited partnership and common stock investments of $109 million and catastrophe losses, net of reinsurance, of $107 million related to Hurricane Michael and the California wildfires. (3) |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company reimburses Loews for, or pays directly, fees and expenses of investment facilities and services provided to the Company. Additionally, the Company provides investment-related processing services to Loews and charges Loews for these services. The net amounts incurred by the Company for these fees, expenses and services were $44 million , $43 million and $43 million for the years ended December 31, 2019 , 2018 and 2017 . Net amounts due to Loews related to these services, included in Other liabilities and payable in the first quarter of the subsequent year, were $21 million and $23 million as of December 31, 2019 and 2018 . In addition, the Company reimbursed Loews for general corporate services and related travel expenses of $1 million and less than $1 million for the years ended December 31, 2019 and 2018 . The CNA Tax Group is included in the consolidated federal income tax return of Loews and its eligible subsidiaries. The related receivable from Loews, included in Other assets, was $21 million and $8 million as of December 31, 2019 and 2018 . For a detailed description of the income tax agreement with Loews see Note D to the Consolidated Financial Statements. In addition, the Company writes, at standard rates, a limited amount of insurance for Loews and its subsidiaries. The earned premiums for each of the years ended December 31, 2019 , 2018 and 2017 were $2 million . |
Non-Insurance Revenues from Con
Non-Insurance Revenues from Contracts with Customers | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Non-Insurance Revenues from Contracts with Customers | Non-Insurance Revenues from Contracts with Customers Non-Insurance revenue is recognized when obligations under the terms of a contract with a customer are satisfied; generally this occurs over time as obligations are fulfilled. Revenue is measured as the amount of consideration the Company expects to receive in exchange for providing services. Deferred Non-Insurance Warranty Revenue The Company had deferred non-insurance warranty revenue balances of $3.8 billion and $3.4 billion reported in Deferred non-insurance warranty revenue as of December 31, 2019 and 2018 . The increase in the deferred revenue balance for the year ended December 31, 2019 was primarily driven by deferrals outpacing revenue recognized in the period due to growth in the business. For the year ended December 31, 2019 , the Company recognized $971 million of revenues that were included in the deferred revenue balance as of January 1, 2019 . For the year ended December 31, 2018 , the Company recognized $834 million of revenues that were included in the deferred revenue balance as of January 1, 2018 . For the years ended December 31, 2019 and 2018 , Non-insurance warranty revenue recognized from performance obligations related to prior periods due to a change in estimate was not material. The Company expects to recognize approximately $1.1 billion of the deferred revenue in 2020, $882 million in 2021, $674 million in 2022 and $1.1 billion thereafter. Cost to Obtain and Fulfill Non-Insurance Warranty Contracts with Customers For the years ended December 31, 2019 and 2018 , capitalized commission costs were $2.8 billion and $2.5 billion and capitalized administrator service costs were $31 million and $24 million . For the years ended December 31, 2019 and 2018 , the amount of amortization of capitalized costs were $813 million and $673 million and there were no impairment losses related to the costs capitalized. There were no adjustments to deferred costs recorded for the years ended December 31, 2019 and 2018 . |
Schedule I. Summary of Investme
Schedule I. Summary of Investments - Other Than Investments in Related Parties | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Schedule I. Summary of Investments - Other than Investments in Related Parties | SCHEDULE I. SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES Incorporated herein by reference to Note B to the Consolidated Financial Statements included under Item 8. |
Schedule II. Condensed Financia
Schedule II. Condensed Financial Information of Registrant (Parent Company) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule II. Condensed Financial Information of Registrant (Parent Company) | SCHEDULE II. CONDENSED FINANCIAL INFORMATION OF REGISTRANT (PARENT COMPANY) CNA Financial Corporation Statements of Operations and Comprehensive Income (Loss) Years ended December 31 (In millions) 2019 2018 2017 Revenues Net investment income $ 13 $ 10 $ 6 Net investment losses (21 ) — (42 ) Total revenues (8 ) 10 (36 ) Expenses Administrative and general 1 1 2 Interest 131 135 152 Total expenses 132 136 154 Loss from operations before income taxes and equity in net income of subsidiaries (140 ) (126 ) (190 ) Income tax benefit 21 9 57 Loss before equity in net income of subsidiaries (119 ) (117 ) (133 ) Equity in net income of subsidiaries 1,119 930 1,032 Net income 1,000 813 899 Equity in other comprehensive income (loss) of subsidiaries 929 (894 ) 205 Total comprehensive income (loss) $ 1,929 $ (81 ) $ 1,104 See accompanying Notes to Condensed Financial Information as well as the Consolidated Financial Statements and accompanying Notes. CNA Financial Corporation Balance Sheets December 31 (In millions, except share data) 2019 2018 Assets Investment in subsidiaries $ 14,412 $ 13,427 Cash 1 1 Short term investments 521 519 Amounts due from affiliates 2 2 Other assets 1 — Total assets $ 14,937 $ 13,949 Liabilities Long term debt $ 2,679 $ 2,680 Other liabilities 43 52 Total liabilities 2,722 2,732 Stockholders' Equity Common stock ($2.50 par value; 500,000,000 shares authorized; 273,040,243 shares issued; 271,412,591 and 271,456,978 shares outstanding) 683 683 Additional paid-in capital 2,203 2,192 Retained earnings 9,348 9,277 Accumulated other comprehensive income (loss) 51 (878 ) Treasury stock (1,627,652 and 1,583,265 shares), at cost (70 ) (57 ) Total stockholders' equity 12,215 11,217 Total liabilities and stockholders' equity $ 14,937 $ 13,949 See accompanying Notes to Condensed Financial Information as well as the Consolidated Financial Statements and accompanying Notes. CNA Financial Corporation Statements of Cash Flows Years ended December 31 (In millions) 2019 2018 2017 Cash Flows from Operating Activities Net income $ 1,000 $ 813 $ 899 Adjustments to reconcile net income to net cash flows provided by operating activities: Equity in net income of subsidiaries (1,119 ) (930 ) (1,032 ) Dividends received from subsidiaries 1,065 1,026 955 Net investment losses 21 — 42 Other, net 13 16 36 Net cash flows provided by operating activities 980 925 900 Cash Flows from Investing Activities Change in short term investments 10 130 (146 ) Capital contributions to subsidiaries (2 ) (2 ) — Other, net — — — Net cash flows provided (used) by investing activities 8 128 (146 ) Cash Flows from Financing Activities Dividends paid to common stockholders (929 ) (896 ) (842 ) Proceeds from the issuance of debt 496 — 496 Repayment of debt (520 ) (150 ) (391 ) Purchase of Treasury Stock (23 ) — — Other, net (12 ) (7 ) (17 ) Net cash flows used by financing activities (988 ) (1,053 ) (754 ) Net change in cash — — — Cash, beginning of year 1 1 1 Cash, end of year $ 1 $ 1 $ 1 See accompanying Notes to Condensed Financial Information as well as the Consolidated Financial Statements and accompanying Notes. Notes to Condensed Financial Information A. Summary of Significant Accounting Policies Basis of Presentation The condensed financial information of CNA Financial Corporation (CNAF or the Parent Company) should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in Item 8 of this Form 10-K. CNAF’s subsidiaries are accounted for using the equity method of accounting. Equity in net income of these subsidiaries is presented on the Condensed Statements of Operations as Equity in net income of subsidiaries. Loews owned approximately 89% of the outstanding common stock of CNAF as of December 31, 2019 . |
Schedule III. Supplementary Ins
Schedule III. Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
Schedule III. Supplementary Insurance Information | SCHEDULE III. SUPPLEMENTARY INSURANCE INFORMATION Incorporated herein by reference to Note O |
Schedule IV. Reinsurance
Schedule IV. Reinsurance | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Schedule IV. Reinsurance | SCHEDULE IV. REINSURANCE Incorporated herein by reference to Note G to the Consolidated Financial Statements included under Item 8. |
Schedule V. Valuation and Quali
Schedule V. Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule V. Valuation and Qualifying Accounts | SCHEDULE V. VALUATION AND QUALIFYING ACCOUNTS (In millions) Balance at Beginning of Period Charged to Costs and Expenses Charged to Other Accounts (1) Deductions Balance at End of Period Year ended December 31, 2019 Deducted from assets: Allowance for doubtful accounts: Insurance and reinsurance receivables $ 71 $ (6 ) $ — $ (8 ) $ 57 Year ended December 31, 2018 Deducted from assets: Allowance for doubtful accounts: Insurance and reinsurance receivables $ 73 $ 4 $ — $ (6 ) $ 71 Year ended December 31, 2017 Deducted from assets: Allowance for doubtful accounts: Insurance and reinsurance receivables $ 83 $ (1 ) $ — $ (9 ) $ 73 (1) Amount includes effects of foreign currency translation. |
Schedule VI. Supplemental Infor
Schedule VI. Supplemental Information Concerning Property and Casualty Insurance Operations | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Abstract] | |
Schedule VI. Supplemental Information Concerning Property and Casualty Insurance Operations | SCHEDULE VI. SUPPLEMENTAL INFORMATION CONCERNING PROPERTY AND CASUALTY INSURANCE OPERATIONS As of and for the years ended December 31 Consolidated Property and Casualty Operations (In millions) 2019 2018 2017 Balance Sheet Data Deferred acquisition costs $ 662 $ 633 Reserves for unpaid claim and claim adjustment expenses 21,720 21,984 Discount deducted from claim and claim adjustment expense reserves above (based on interest rates ranging from 3.5% to 7.6%) 1,321 1,388 Unearned premiums 4,583 4,183 Statement of Operations Data Net written premiums $ 7,656 $ 7,345 $ 7,069 Net earned premiums 7,428 7,312 6,988 Net investment income 2,063 1,751 1,992 Incurred claim and claim adjustment expenses related to current year 5,356 5,358 5,201 Incurred claim and claim adjustment expenses related to prior years (127 ) (179 ) (381 ) Amortization of deferred acquisition costs 1,383 1,335 1,233 Paid claim and claim adjustment expenses 5,576 5,331 5,341 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The Consolidated Financial Statements include the accounts of CNA Financial Corporation (CNAF) and its subsidiaries. Collectively, CNAF and its subsidiaries are referred to as CNA or the Company. Loews Corporation (Loews) owned approximately 89% of the outstanding common stock of CNAF as of December 31, 2019 . |
Use of Estimates | The preparation of Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates. |
Recently Adopted Accounting Standards Updates and Accounting Standards Pending Adoption | Recently Adopted Accounting Standards Updates (ASU) ASU 2016-02: In February 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-02, Leases (Topic 842): Accounting for Leases. The updated accounting guidance requires lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by the majority of leases, including those historically accounted for as operating leases. On January 1, 2019, the Company adopted the updated guidance using a modified retrospective method. Prior period amounts have not been adjusted and continue to be reported in accordance with the previous accounting guidance. The Company utilized the permitted package of practical expedients allowing the Company to not reassess whether a contract is or contains a lease, lease classification and initial direct costs. The Company also utilized the permitted practical expedient to not separate lease and non-lease components for all leases. Adoption of the updated guidance resulted in the following changes to the Consolidated Balance Sheets on January 1, 2019: (In millions) Balance as of December 31, 2018 Adjustments Due to Adoption of Topic 842 Balance as of January 1, 2019 Property and equipment at cost (less accumulated depreciation) $ 324 $ 2 $ 326 Other assets 1,208 237 1,445 Other liabilities 3,089 239 3,328 As of January 1, 2019 , operating lease right-of-use (ROU) assets, included within Other assets, were reduced by accrued rent and lease incentives of $75 million previously classified as Other liabilities. The updated guidance did not impact the Consolidated Statements of Operations. See Note L to the Consolidated Financial Statements for additional information regarding leases. ASU 2014-09: In May 2014, the FASB issued ASU No. 2014-09, Revenue Recognition (Topic 606) : Revenue from Contracts with Customers . The standard excludes from its scope the accounting for insurance contracts, financial instruments, and certain other agreements that are governed under other GAAP guidance, but the standard does apply to certain of the Company's warranty products and services. The updated guidance requires an entity to recognize revenue as performance obligations are met, in an amount that reflects the consideration the entity is entitled to receive for the transfer of the promised goods or services. On January 1, 2018, the Company adopted the updated guidance using the modified retrospective method applied to all contracts which were not completed as of the date of adoption, with the cumulative effect recognized as an adjustment to the opening balance of Retained earnings. Prior period amounts have not been adjusted and continue to be reported in accordance with the previous accounting guidance. Under the new guidance, revenue on warranty products and services is recognized more slowly as compared to the historic revenue recognition pattern. In addition, for warranty products where the Company acts as the principal in the transaction, Non-insurance warranty revenue and Non-insurance warranty expense are increased to reflect the gross amount paid by consumers, including the retail seller’s markup which is considered a commission to the Company's agent. This gross-up of revenue and expense also resulted in an increase to Deferred non-insurance warranty acquisition expense and Deferred non-insurance warranty revenue on the Company's Consolidated Balance Sheets as the revenue and expense are recognized over the actuarially determined expected claims emergence pattern. The cumulative effect changes to the Consolidated Balance Sheet for the adoption of the updated guidance on January 1, 2018 were as follows: (In millions) Balance as of December 31, 2017 Adjustments Due to Adoption of Topic 606 Balance as of January 1, 2018 Deferred non-insurance warranty acquisition expense $ 212 $ 1,882 $ 2,094 Deferred non-insurance warranty revenue 972 1,969 2,941 Deferred income taxes 137 21 158 Retained earnings 9,414 (66 ) 9,348 The impact of adoption on the Consolidated Statements of Operations and Balance Sheet was as follows: Year ended December 31, 2018 Prior to Adoption Effect of Adoption As Reported (In millions) Statement of operations: Non-insurance warranty revenue $ 420 $ 587 $ 1,007 Total revenues 9,547 587 10,134 Non-insurance warranty expense 328 595 923 Total claims, benefits and expenses 8,575 595 9,170 Income before income tax 972 (8 ) 964 Income tax expense (153 ) 2 (151 ) Net income 819 (6 ) 813 Balance sheet (1) at December 31, 2018: Deferred non-insurance warranty acquisition expense $ 2,116 $ 397 $ 2,513 Deferred non-insurance warranty revenue 2,997 405 3,402 Deferred income taxes 390 2 392 Retained earnings 9,283 (6 ) 9,277 (1) The Prior to Adoption amounts presented in this table include the cumulative effect adjustment at adoption presented in the prior table. See Note R to the Consolidated Financial Statements for additional information regarding non-insurance revenues from contracts with customers. ASU 2016-01: In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . The updated accounting guidance requires changes to the reporting model for financial instruments. The guidance primarily changes the model for equity securities by requiring changes in the fair value of equity securities (except those accounted for under the equity method of accounting, those without readily determinable fair values and those that result in consolidation of the investee) to be recognized through the income statement. The Company adopted the updated guidance on January 1, 2018 and recognized a cumulative effect adjustment that increased beginning Retained earnings by $28 million , net of tax. Prior period amounts have not been adjusted and continue to be reported in accordance with the previous accounting guidance. For the year ended December 31, 2017, there was a $32 million increase in the fair value of non-redeemable preferred stock and a less than $1 million increase in the fair value of common stock, both recognized in Other comprehensive income. Accounting Standards Pending Adoption In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The updated accounting guidance requires changes to the recognition of credit losses on financial instruments not accounted for at fair value through the Company’s results of operations. The expected credit loss model will require a financial asset to be presented at the net amount expected to be collected and applies to the mortgage loan portfolio, reinsurance and insurance receivables and other financing receivables. Under the new guidance, the Other-than-temporary impairment (OTTI) concept has been eliminated for available-for-sale fixed maturity securities, and expected credit losses are recognized immediately in earnings through an allowance, rather than as a reduction of amortized cost. This will allow the Company to record reversals of credit losses if the estimate of credit losses declines. For available-for-sale fixed maturity securities with an intent to sell, impairment will continue to result in a write-down of amortized cost. The guidance is effective for interim and annual periods beginning after December 15, 2019. The expected credit loss model will be applied using a modified retrospective approach with the cumulative effect recognized as an adjustment to retained earnings. A prospective transition approach is required for available-for-sale debt securities that were purchased with credit deterioration or have recognized an OTTI write-down prior to the effective date. The Company has evaluated the effect the guidance will have on its financial statements and determined that the impact at the date of adoption will not be material. In August 2018, the FASB issued ASU 2018-12, Financial Services-Insurance (Topic 944): Targeted Improvements to the Accounting for Long Duration Contracts |
Premiums | Premiums: Insurance premiums on property and casualty insurance contracts are recognized in proportion to the underlying risk insured and are principally earned ratably over the term of the policies. Premiums on long term care contracts are earned ratably over the policy year in which they are due. The reserve for unearned premiums represents the portion of premiums written relating to the unexpired terms of coverage. Insurance receivables include balances due currently or in the future, including amounts due from insureds related to paid losses under high deductible policies, and are presented at unpaid balances, net of an allowance for uncollectible receivables. Amounts are considered past due based on policy payment terms. The allowance is determined based on periodic evaluations of aged receivables, historical business default data, management's experience and current economic conditions. Insurance receivables and any related allowance are written off after collection efforts are exhausted or a negotiated settlement is reached. Property and casualty contracts that are retrospectively rated contain provisions that result in an adjustment to the initial policy premium depending on the contract provisions and loss experience of the insured during the experience period. For such contracts, the Company estimates the amount of ultimate premiums that the Company may earn upon completion of the experience period and recognizes either an asset or a liability for the difference between the initial policy premium and the estimated ultimate premium. The Company adjusts such estimated ultimate premium amounts during the course of the experience period based on actual results to date. The resulting adjustment is recorded as either a reduction of or an increase to the earned premiums for the period. |
Claim and claim adjustment expense reserves | Claim and claim adjustment expense reserves: Claim and claim adjustment expense reserves, except reserves for structured settlements not associated with A&EP, workers' compensation lifetime claims and long term care claims, are not discounted and are based on i) case basis estimates for losses reported on direct business, adjusted in the aggregate for ultimate loss expectations; ii) estimates of incurred but not reported (IBNR) losses; iii) estimates of losses on assumed reinsurance; iv) estimates of future expenses to be incurred in the settlement of claims; v) estimates of salvage and subrogation recoveries and vi) estimates of amounts due from insureds related to losses under high deductible policies. Management considers current conditions and trends as well as past Company and industry experience in establishing these estimates. The effects of inflation, which can be significant, are implicitly considered in the reserving process and are part of the recorded reserve balance. Ceded claim and claim adjustment expense reserves are reported as a component of Reinsurance receivables on the Consolidated Balance Sheets. Claim and claim adjustment expense reserves are presented net of anticipated amounts due from insureds related to losses under deductible policies of $1.2 billion as of December 31, 2019 and 2018 . A significant portion of these amounts are supported by collateral. The Company has an allowance for uncollectible deductible amounts, which is presented as a component of the allowance for doubtful accounts included in Insurance receivables on the Consolidated Balance Sheets. Structured settlements have been negotiated for certain property and casualty insurance claims. Structured settlements are agreements to provide fixed periodic payments to claimants. The Company's obligations for structured settlements not funded by annuities are included in claim and claim adjustment expense reserves and carried at present values determined using interest rates ranging from 5.5% to 7.6% and 5.5% to 8.0% as of December 31, 2019 and 2018 . As of December 31, 2019 and 2018 , the discounted reserves for unfunded structured settlements were $497 million and $512 million , net of discount of $724 million and $760 million . For the years ended December 31, 2019 , 2018 and 2017 , the amount of interest recognized on the discounted reserves of unfunded structured settlements was $36 million , $40 million and $41 million , respectively. This interest accretion is presented as a component of Insurance claims and policyholders’ benefits on the Consolidated Statements of Operations, but is excluded from the Company’s disclosure of prior year loss reserve development. Workers' compensation lifetime claim reserves are calculated using mortality assumptions determined through statutory regulation and economic factors. At December 31, 2019 and 2018 , workers' compensation lifetime claim reserves are discounted at a 3.5% interest rate. As of December 31, 2019 and 2018 , the discounted reserves for workers’ compensation lifetime claim reserves were $293 million and $343 million , net of discount of $135 million and $168 million . For the years ended December 31, 2019 , 2018 and 2017 , the amount of interest accretion recognized on the discounted reserves of workers’ compensation lifetime claim reserves was $21 million , $16 million and $19 million , respectively. This interest accretion is presented as a component of Insurance claims and policyholders' benefits on the Consolidated Statements of Operations, but is excluded from the Company's disclosure of prior year loss reserve development. Long term care claim reserves are calculated using mortality and morbidity assumptions based on Company and industry experience. Long term care claim reserves are discounted at a weighted average interest rate of 5.9% and 6.0% as of December 31, 2019 and 2018 |
Future policy benefits reserves | Future policy benefit reserves: Future policy benefit reserves represent the active life reserves related to the Company's long term care policies and are computed using the net level premium method, which incorporates actuarial assumptions as to morbidity, persistency, inclusive of mortality, discount rate, future premium rate adjustments and expenses. Expense assumptions primarily relate to claim adjudication. These assumptions are locked in over the life of the policy; however if a premium deficiency emerges, the assumptions are unlocked and the future policy benefit reserves are increased. The September 30, 2019 gross premium valuation (GPV) indicated a premium deficiency of $216 million |
Insurance-relate assessments | Insurance-related assessments: |
Reinsurance | Reinsurance: Reinsurance accounting allows for contractual cash flows to be reflected as premiums and losses. To qualify for reinsurance accounting, reinsurance agreements must include risk transfer. To meet risk transfer requirements, a reinsurance contract must include both insurance risk, consisting of underwriting and timing risk, and a reasonable possibility of a significant loss for the assuming entity. Reinsurance receivables related to paid losses are presented at unpaid balances. Reinsurance receivables related to unpaid losses are estimated in a manner consistent with claim and claim adjustment expense reserves or future policy benefit reserves. Reinsurance receivables are reported net of an allowance for uncollectible amounts on the Consolidated Balance Sheets. The cost of reinsurance is primarily accounted for over the life of the underlying reinsured policies using assumptions consistent with those used to account for the underlying policies or over the reinsurance contract period. The ceding of insurance does not discharge the primary liability of the Company. The Company has established an allowance for uncollectible reinsurance receivables which relates to both amounts already billed on ceded paid losses as well as ceded reserves that will be billed when losses are paid in the future. The allowance for uncollectible reinsurance receivables is estimated on the basis of periodic evaluations of balances due from reinsurers, reinsurer solvency, industry experience and current economic conditions. Reinsurer financial strength ratings are updated and reviewed on an annual basis or sooner if the Company becomes aware of significant changes related to a reinsurer. Because billed receivables generally approximate 5% or less of total reinsurance receivables, the age of the reinsurance receivables related to paid losses is not a significant input into the allowance analysis. Changes in the allowance for uncollectible reinsurance receivables are presented as a component of Insurance claims and policyholders' benefits on the Consolidated Statements of Operations. Amounts are considered past due based on the reinsurance contract terms. Reinsurance receivables related to paid losses and any related allowance are written off after collection efforts have been exhausted or a negotiated settlement is reached with the reinsurer. Reinsurance receivables from insolvent insurers related to paid losses are written off when the settlement due from the estate can be reasonably estimated. At the time reinsurance receivables related to paid losses are written off, any required adjustment to reinsurance receivables related to unpaid losses is recorded as a component of Insurance claims and policyholders' benefits on the Consolidated Statements of Operations. A loss portfolio transfer is a retroactive reinsurance contract. If the cumulative claim and allocated claim adjustment expenses ceded under a loss portfolio transfer exceed the consideration paid, the resulting gain from such excess is deferred and amortized into earnings in future periods in proportion to actual recoveries under the loss portfolio transfer. In any period in which there is a revised estimate of claim and allocated claim adjustment expenses and the loss portfolio transfer is in a gain position, the deferred gain is recalculated as if the revised estimate was available at the inception date of the loss portfolio transfer and the change in the deferred gain is recognized in earnings. |
Deferred acquisition costs | Deferred acquisition costs: Deferrable acquisition costs include commissions, premium taxes and certain underwriting and policy issuance costs which are incremental direct costs of successful contract acquisitions. Acquisition costs related to property and casualty business are deferred and amortized ratably over the period the related premiums are earned. Deferred acquisition costs are presented net of ceding commissions and other ceded acquisition costs. The Company evaluates deferred acquisition costs for recoverability. Anticipated investment income is considered in the determination of the recoverability of deferred acquisition costs. Adjustments, if necessary, are recorded in current period results of operations. |
Policyholder dividends | Policyholder dividends: Policyholder dividends are paid to participating policyholders within the worker’s compensation and surety lines of business. Net written premiums for participating dividend policies were approximately 1% of total net written premiums for each of the years ended December 31, 2019, 2018 and 2017. Dividends to policyholders are accrued according to the Company's best estimate of the amount to be paid in accordance with contractual provisions and applicable state laws. Dividends to policyholders are presented as a component of Insurance claims & policyholders' benefits on the Consolidated Statements of Operations and Other liabilities on the Consolidated Balance Sheets. |
Investments | Investments The Company classifies its fixed maturity securities as either available-for-sale or trading, and as such, they are carried at fair value. Changes in fair value of trading securities are reported within Net investment income on the Consolidated Statements of Operations. Changes in fair value related to available-for-sale securities are reported as a component of Other comprehensive income. The cost of fixed maturity securities classified as available-for-sale is adjusted for amortization of premiums and accretion of discounts, which are included in Net investment income on the Consolidated Statements of Operations. The amortization of premium and accretion of discount for fixed maturity securities takes into consideration call and maturity dates that produce the lowest yield. For asset-backed securities included in fixed maturity securities, the Company recognizes income using an effective yield based on anticipated prepayments and the estimated economic life of the securities. When estimates of prepayments change, the effective yield is recalculated to reflect actual payments to date and anticipated future payments. To the extent that unrealized gains on fixed maturity securities supporting long term care products and structured settlements not funded by annuities would result in a premium deficiency if those gains were realized, a related increase in Insurance reserves is recorded, net of tax, as a reduction of net unrealized gains through Other comprehensive income (Shadow Adjustments). Shadow Adjustments, net of tax, increased $1,120 million and decreased $333 million for the years ended December 31, 2019 and 2018 , respectively. As of December 31, 2019 and 2018 , net unrealized gains on investments included in Accumulated other comprehensive income (AOCI) were correspondingly reduced by Shadow Adjustments of $2,198 million and $1,078 million , respectively. Equity securities are carried at fair value. The Company's non-redeemable preferred stock contain characteristics of debt securities, are priced similarly to bonds and are held primarily for income generation through periodic dividends. While recognition of gains and losses on these securities is not discretionary, management does not consider the changes in fair value of non-redeemable preferred stock to be reflective of our primary operations. As such, the changes in the fair value of these securities are recorded through Net investment gains (losses). The Company owns certain common stock with the intention of holding the securities primarily for market appreciation and as such, the changes in the fair value of these securities are recorded through Net investment income. Prior to 2018, equity securities were considered available for sale with changes in fair value reported as a component of Other comprehensive income. The Company's carrying value of investments in limited partnerships is its share of the net asset value of each partnership, as determined by the general partner. Certain partnerships for which results are not available on a timely basis are reported on a lag, primarily three months or less. Changes in net asset values are accounted for under the equity method and recorded within Net investment income on the Consolidated Statements of Operations. Mortgage loans are commercial in nature, are carried at unpaid principal balance, net of unamortized fees and any valuation allowance, and are recorded once funded. Interest income from mortgage loans is recognized on an accrual basis using the effective yield method. Mortgage loans are considered to be impaired loans when it is probable that contractual principal and interest payments will not be collected. The Company evaluates loans for impairment on an individual loan basis and identifies loans for evaluation of impairment based on the collection experience of each loan and other credit quality indicators such as debt service coverage ratio and the creditworthiness of the borrower or tenants of credit tenant loan properties. Accrual of income is generally suspended for mortgage loans that are impaired and collection of principal and interest payments is unlikely. Mortgage loans are considered past due when full principal or interest payments have not been received according to contractual terms. As of December 31, 2019 and 2018 , there were no loans past due or in non-accrual status, and no valuation allowance was recorded. Other invested assets include overseas deposits. Overseas deposits are valued using the net asset value per share (or equivalent) practical expedient. They are primarily short-term government securities, agency securities and corporate bonds held in trusts that are managed by Lloyd's of London. These funds are required of Lloyd's syndicates to protect policyholders in overseas markets and may be denominated in local currency. Short term investments are carried at fair value, with the exception of cash accounts earning interest, which are carried at cost and approximate fair value. Changes in fair value are reported as a component of Other comprehensive income. Purchases and sales of all securities are recorded on the trade date, except for private placement debt securities, including bank loan participations, which are recorded once funded. Net investment gains and losses are determined on the basis of the cost or amortized cost of the specific securities sold. |
Variable interest entities | In the normal course of investing activities, the Company enters into relationships with variable interest entities (VIEs), as both an investor in limited partnerships and asset-backed securities issued by third-party VIEs. The Company is not the primary beneficiary of these VIEs, and therefore does not consolidate them. The Company determines whether it is the primary beneficiary of a VIE based on a qualitative assessment of the relative power and benefits of the Company and the other participants in the VIE. The Company’s maximum exposure to loss with respect to these investments is limited to the investment carrying values included in the Company’s Consolidated Balance Sheets and any unfunded commitments. |
Impairments, other than temporary | An available for sale security is impaired if the fair value of the security is less than its cost adjusted for accretion, amortization and previously recorded OTTI losses, otherwise defined as an unrealized loss. When a security is impaired, the impairment is evaluated to determine whether it is temporary or other-than-temporary. When the decline in value is determined by the Company to be other-than-temporary, losses are recognized within Net investment gains (losses) on the Consolidated Statements of Operations. Significant judgment is required in the determination of whether an OTTI loss has occurred for a security. The Company follows a consistent and systematic process for determining and recording an OTTI loss, including the evaluation of securities in an unrealized loss position on at least a quarterly basis. The Company’s assessment of whether an OTTI loss has occurred incorporates both quantitative and qualitative information. Fixed maturity securities that the Company intends to sell, or it more likely than not will be required to sell before recovery of amortized cost, are considered to be other-than-temporarily impaired and the entire difference between the amortized cost basis and fair value of the security is recognized as an OTTI loss in earnings. The remaining fixed maturity securities in an unrealized loss position are evaluated to determine if a credit loss exists. The factors considered include (a) the financial condition and near-term and long-term prospects of the issuer, (b) whether the debtor is current on interest and principal payments, (c) credit ratings of the securities and (d) general market conditions and industry or sector specific outlook. The Company also considers results and analysis of cash flow modeling for asset-backed securities, and when appropriate, other fixed maturity securities. If the present value of the modeled expected cash flows equals or exceeds the amortized cost of a security, no credit loss is judged to exist and the asset-backed security is deemed to be temporarily impaired. If the present value of the expected cash flows is less than amortized cost, the security is judged to be other-than-temporarily impaired for credit reasons and that shortfall, referred to as the credit component, is recognized as an OTTI loss in earnings. The difference between the adjusted amortized cost basis and fair value, referred to as the non-credit component, is recognized as OTTI in Other comprehensive income. In subsequent reporting periods, a change in intent to sell or further credit impairment on a security whose fair value has not deteriorated will cause the non-credit component originally recorded as OTTI in Other comprehensive income to be recognized as an OTTI loss in earnings. Significant assumptions enter into these cash flow projections including delinquency rates, probable risk of default, loss severity upon a default, over collateralization and interest coverage triggers and credit support from lower level tranches. |
Deferred Non-Insurance Warranty Revenue and Acquisition Expense | Deferred Non-Insurance Warranty Revenue and Acquisition Expense Non-insurance warranty revenue is primarily generated from separately-priced service contracts that provide mechanical breakdown and other coverages to vehicle or consumer goods owners. The warranty contracts generally provide coverage from 1 month to 10 years . For warranty products where the Company acts as the principal in the transaction, Non-insurance warranty revenue is reported on a gross basis, with amounts paid by customers reported as Non-insurance warranty revenue and commissions paid to agents reported as Non-insurance warranty expense. Prior to 2018, Non-insurance warranty revenue was recognized net of dealer costs and earned based on the estimated claims emergence pattern over the contract period. Non-insurance warranty revenue is reported net of any premiums related to contractual liability coverage issued by the Company's insurance operations. Additionally, the Company provides warranty administration services for dealer and manufacturer obligor warranty products, which include limited warranties and guaranteed automobile protection waivers. The Company recognizes Non-insurance warranty revenue over the service period in proportion to the actuarially determined expected claims emergence pattern. Customers pay in full at the inception of the warranty contract. The liability for deferred revenue represents the unearned portion of revenue in advance of the Company's performance. The deferred revenue balance includes amounts which are refundable on a pro rata basis upon cancellation. Dealers, retailers and agents earn commission for assisting the Company in obtaining non-insurance warranty contracts. Additionally, the Company utilizes a third-party to perform warranty administrator services for its consumer goods warranties. These costs, which are deferred and recorded as Deferred non-insurance warranty acquisition expense, are amortized to Non-insurance warranty expense consistent with how the related revenue is recognized. The Company evaluates deferred costs for recoverability including consideration of anticipated investment income. Adjustments to deferred costs, if necessary, are recorded in the current period results of operations. |
Income Taxes | Income Taxes The Company and its eligible subsidiaries (CNA Tax Group) are included in the consolidated federal income tax return of Loews and its eligible subsidiaries. The Company accounts for income taxes under the asset and liability method. Under the asset and liability method, deferred income taxes are recognized for temporary differences between the financial statement and tax return bases of assets and liabilities, based on enacted tax rates and other provisions of the tax law. The effect of a change in tax laws or rates on deferred tax assets and liabilities is recognized in income in the period in which such change is enacted. Future tax benefits are recognized to the extent that realization of such benefits is more likely than not, and a valuation allowance is established for any portion of a deferred tax asset that management believes will not be realized. The Company releases tax effects from AOCI utilizing the security-by-security approach for Net unrealized gains (losses) on investments with OTTI losses and Net unrealized gains (losses) on other investments. For Pension and postretirement benefits, tax effects from AOCI are released at enacted tax rates based on the pre-tax adjustments to pension liabilities or assets recognized within Other comprehensive income. |
Pension and Postretirement Benefits | Pension and Postretirement Benefits The Company recognizes the overfunded or underfunded status of its defined benefit plans in Other assets or Other liabilities on the Consolidated Balance Sheets. Changes in funded status related to prior service costs and credits, and actuarial gains and losses arising from differences between actual experience and actuarial assumptions, are recognized in the year in which the changes occur through Other comprehensive income. Unrecognized actuarial gains and losses in excess of 10% of the greater of the beginning of the year projected benefit obligation or fair value of plan assets (the corridor) are amortized as a component of net periodic pension cost (benefit) over the average remaining life expectancy of the plan participants. Annual service cost, interest cost, expected return on plan assets, amortization of prior service costs and credits and amortization of actuarial gains and losses are recognized on the Consolidated Statements of Operations. The vested benefit obligation for the CNA Retirement Plan is determined based on eligible compensation and accrued service for previously entitled employees. Effective June 30, 2015, future benefit accruals under the CNA Retirement Plan were eliminated and the benefit obligations were frozen. |
Stock-Based Compensation | Stock-Based Compensation The Company records compensation expense using the fair value method for all awards it grants, modifies or cancels primarily on a straight-line basis over the requisite service period, generally three years . |
Foreign Currency | Foreign Currency |
Leases | Leases A lease provides the lessee the right to control the use of an identified asset for a period of time in exchange for consideration. Operating lease ROU assets and lease liabilities are included in Other assets and Other liabilities on the Company's Consolidated Balance Sheets. |
Property and Equipment | Property and Equipment Property and equipment are carried at cost less accumulated depreciation. Depreciation is based on the estimated useful lives of the various classes of property and equipment and is determined principally on the straight-line method. Furniture and fixtures are depreciated over seven years . Office equipment is depreciated over five years . The estimated lives for data processing equipment and software generally range from three to five years , but can be as long as ten years . Leasehold improvements are depreciated over the corresponding lease terms not to exceed the underlying asset life. |
Goodwill | Goodwill Goodwill represents the excess of purchase price over the fair value of the net assets of acquired entities and businesses. Goodwill in the International segment may change from period to period as a result of foreign currency translation. Goodwill is tested for impairment annually or when certain triggering events require such tests. As a result of reviews completed for the year ended December 31, 2019 , the Company determined that the estimated fair value of the reporting units were in excess of their carrying value including Goodwill. Changes in future periods in assumptions about the level of economic capital, business growth, earnings projections or the weighted average cost of capital could result in goodwill impairment. |
Other Intangible Assets | Other Intangible Assets Other intangible assets are reported within Other assets on the Consolidated Balance Sheets. Finite-lived intangible assets are amortized over their estimated useful lives. Indefinite-lived other intangible assets are tested for impairment annually or when certain triggering events require such tests. |
Earnings (Loss) Per Share Data | Earnings (Loss) Per Share Data Earnings (loss) per share is based on weighted average number of outstanding common shares. Basic earnings (loss) per share excludes the impact of dilutive securities and is computed by dividing Net income (loss) by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the years ended December 31, 2019 , 2018 and 2017 , approximately 961 thousand , 943 thousand and 988 thousand potential shares attributable to exercises or conversions into common stock under stock-based employee compensation plans were included in the calculation of diluted earnings per share. For those same periods, 1 thousand , 6 thousand and less than 1 thousand potential shares attributable to exercises or conversions into common stock under stock-based employee compensation plans were not included in the calculation of diluted earnings per share, because the effect would have been antidilutive. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of new accounting pronouncements and changes in accounting principles | The cumulative effect changes to the Consolidated Balance Sheet for the adoption of the updated guidance on January 1, 2018 were as follows: (In millions) Balance as of December 31, 2017 Adjustments Due to Adoption of Topic 606 Balance as of January 1, 2018 Deferred non-insurance warranty acquisition expense $ 212 $ 1,882 $ 2,094 Deferred non-insurance warranty revenue 972 1,969 2,941 Deferred income taxes 137 21 158 Retained earnings 9,414 (66 ) 9,348 The impact of adoption on the Consolidated Statements of Operations and Balance Sheet was as follows: Year ended December 31, 2018 Prior to Adoption Effect of Adoption As Reported (In millions) Statement of operations: Non-insurance warranty revenue $ 420 $ 587 $ 1,007 Total revenues 9,547 587 10,134 Non-insurance warranty expense 328 595 923 Total claims, benefits and expenses 8,575 595 9,170 Income before income tax 972 (8 ) 964 Income tax expense (153 ) 2 (151 ) Net income 819 (6 ) 813 Balance sheet (1) at December 31, 2018: Deferred non-insurance warranty acquisition expense $ 2,116 $ 397 $ 2,513 Deferred non-insurance warranty revenue 2,997 405 3,402 Deferred income taxes 390 2 392 Retained earnings 9,283 (6 ) 9,277 (1) The Prior to Adoption amounts presented in this table include the cumulative effect adjustment at adoption presented in the prior table. Adoption of the updated guidance resulted in the following changes to the Consolidated Balance Sheets on January 1, 2019: (In millions) Balance as of December 31, 2018 Adjustments Due to Adoption of Topic 842 Balance as of January 1, 2019 Property and equipment at cost (less accumulated depreciation) $ 324 $ 2 $ 326 Other assets 1,208 237 1,445 Other liabilities 3,089 239 3,328 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments [Abstract] | |
Net investment income | The significant components of Net investment income are presented in the following table. Years ended December 31 (In millions) 2019 2018 2017 Fixed maturity securities $ 1,817 $ 1,795 $ 1,812 Equity securities 85 18 12 Limited partnership investments 180 (22 ) 207 Mortgage loans 51 50 34 Short term investments 34 26 15 Trading portfolio 9 7 12 Other 5 4 1 Gross investment income 2,181 1,878 2,093 Investment expense (63 ) (61 ) (59 ) Net investment income $ 2,118 $ 1,817 $ 2,034 |
Net realized investment gains (losses) | Net investment gains (losses) are presented in the following table. Years ended December 31 (In millions) 2019 2018 2017 Net investment gains (losses): Fixed maturity securities: Gross gains $ 125 $ 168 $ 186 Gross losses (131 ) (164 ) (64 ) Net investment gains (losses) on fixed maturity securities (6 ) 4 122 Equity securities 66 (74 ) — Derivatives (11 ) 9 (4 ) Short term investments and other (20 ) 9 (25 ) Net investment gains (losses) $ 29 $ (52 ) $ 93 |
Net change in unrealized gains (losses) on investments | Net change in unrealized gains on investments is presented in the following table. Years ended December 31 (In millions) 2019 2018 2017 Net change in unrealized gains on investments: Fixed maturity securities $ 2,620 $ (1,811 ) $ 728 Equity securities (1) — — 32 Other — — (2 ) Total net change in unrealized gains on investments $ 2,620 $ (1,811 ) $ 758 (1) As of January 1, 2018, the Company adopted ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . The change in fair value of equity securities is now recognized through the income statement. See Note A to the Consolidated Financial Statements for additional information. |
Components of net other than temporary impairment losses recognized in earnings by asset type | The components of OTTI losses recognized in earnings by asset type are presented in the following table. Years ended December 31 (In millions) 2019 2018 2017 Fixed maturity securities available-for-sale: Corporate and other bonds $ 33 $ 12 $ 12 Asset-backed 11 9 1 Total fixed maturity securities available-for-sale 44 21 13 Equity securities available-for-sale — — 1 OTTI losses recognized in earnings $ 44 $ 21 $ 14 |
Summary of fixed maturity and equity securities | The following tables present a summary of fixed maturity securities. December 31, 2019 Cost or Gross Gross Estimated Unrealized (In millions) Fixed maturity securities available-for-sale: Corporate and other bonds $ 19,789 $ 2,292 $ 32 $ 22,049 $ — States, municipalities and political subdivisions 9,093 1,559 — 10,652 — Asset-backed: Residential mortgage-backed 4,387 133 1 4,519 (17 ) Commercial mortgage-backed 2,265 86 5 2,346 1 Other asset-backed 1,925 41 4 1,962 (3 ) Total asset-backed 8,577 260 10 8,827 (19 ) U.S. Treasury and obligations of government-sponsored enterprises 146 1 2 145 — Foreign government 491 14 1 504 — Redeemable preferred stock 10 — — 10 — Total fixed maturity securities available-for-sale 38,106 4,126 45 42,187 $ (19 ) Total fixed maturity securities trading 20 — — 20 Total fixed maturity securities $ 38,126 $ 4,126 $ 45 $ 42,207 December 31, 2018 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 $ 18,764 $ 791 $ 395 $ 19,160 $ — States, municipalities and political subdivisions 9,681 1,076 9 10,748 — Asset-backed: Residential mortgage-backed 4,815 68 57 4,826 (20 ) Commercial mortgage-backed 2,200 28 32 2,196 — Other asset-backed 1,975 11 24 1,962 — Total asset-backed 8,990 107 113 8,984 (20 ) U.S. Treasury and obligations of government-sponsored enterprises 156 3 — 159 — Foreign government 480 5 4 481 — Redeemable preferred stock 10 — — 10 — Total fixed maturity securities available-for-sale 38,081 1,982 521 39,542 $ (20 ) Total fixed maturity securities trading 4 — — 4 Total fixed maturity securities $ 38,085 $ 1,982 $ 521 $ 39,546 |
Securities in a gross unrealized loss position | The following tables present the estimated fair value and gross unrealized losses of fixed maturity 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 December 31, 2019 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 $ 914 $ 21 $ 186 $ 11 $ 1,100 $ 32 States, municipalities and political subdivisions 34 — — — 34 — Asset-backed: Residential mortgage-backed 249 1 30 — 279 1 Commercial mortgage-backed 381 3 20 2 401 5 Other asset-backed 449 3 33 1 482 4 Total asset-backed 1,079 7 83 3 1,162 10 U.S. Treasury and obligations of government-sponsored enterprises 62 2 2 — 64 2 Foreign government 59 1 1 — 60 1 Total $ 2,148 $ 31 $ 272 $ 14 $ 2,420 $ 45 Less than 12 Months 12 Months or Longer Total December 31, 2018 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 $ 8,543 $ 340 $ 825 $ 55 $ 9,368 $ 395 States, municipalities and political subdivisions 517 8 5 1 522 9 Asset-backed: Residential mortgage-backed 1,932 23 1,119 34 3,051 57 Commercial mortgage-backed 728 10 397 22 1,125 32 Other asset-backed 834 21 125 3 959 24 Total asset-backed 3,494 54 1,641 59 5,135 113 U.S. Treasury and obligations of government-sponsored enterprises 21 — 19 — 40 — Foreign government 114 2 124 2 238 4 Total $ 12,689 $ 404 $ 2,614 $ 117 $ 15,303 $ 521 |
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 December 31, 2019 , 2018 and 2017 for which a portion of an OTTI loss was recognized in Other comprehensive income (loss). Years ended December 31 (In millions) 2019 2018 2017 Beginning balance of credit losses on fixed maturity securities $ 18 $ 27 $ 36 Reductions for securities sold during the period (8 ) (9 ) (9 ) Ending balance of credit losses on fixed maturity securities $ 10 $ 18 $ 27 |
Contractual maturity | The following table presents available-for-sale fixed maturity securities by contractual maturity. December 31 2019 2018 (In millions) Cost or Amortized Cost Estimated Fair Value Cost or Amortized Cost Estimated Fair Value Due in one year or less $ 1,334 $ 1,356 $ 1,350 $ 1,359 Due after one year through five years 9,746 10,186 7,979 8,139 Due after five years through ten years 14,892 15,931 16,859 16,870 Due after ten years 12,134 14,714 11,893 13,174 Total $ 38,106 $ 42,187 $ 38,081 $ 39,542 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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. Corporate bonds and other includes obligations of the U.S. Treasury, government-sponsored enterprises, foreign governments and redeemable preferred stock. December 31, 2019 Total Assets/Liabilities at Fair Value (In millions) Level 1 Level 2 Level 3 Assets Fixed maturity securities: Corporate bonds and other $ 175 $ 22,085 $ 468 $ 22,728 States, municipalities and political subdivisions — 10,652 — 10,652 Asset-backed — 8,662 165 8,827 Total fixed maturity securities 175 41,399 633 42,207 Equity securities: Common stock 135 — 7 142 Non-redeemable preferred stock 54 658 11 723 Total equity securities 189 658 18 865 Short term and other 397 1,344 — 1,741 Total assets $ 761 $ 43,401 $ 651 $ 44,813 Liabilities Other liabilities $ — $ 7 $ — $ 7 Total liabilities $ — $ 7 $ — $ 7 December 31, 2018 Total Assets/Liabilities at Fair Value (In millions) Level 1 Level 2 Level 3 Assets Fixed maturity securities: Corporate bonds and other $ 196 $ 19,396 $ 222 $ 19,814 States, municipalities and political subdivisions — 10,748 — 10,748 Asset-backed — 8,787 197 8,984 Total fixed maturity securities 196 38,931 419 39,546 Equity securities: Common stock 144 — 4 148 Non-redeemable preferred stock 48 570 14 632 Total equity securities 192 570 18 780 Short term and other 216 949 — 1,165 Total assets $ 604 $ 40,450 $ 437 $ 41,491 Liabilities Other liabilities $ — $ (4 ) $ — $ (4 ) Total liabilities $ — $ (4 ) $ — $ (4 ) |
Table of reconciliation for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs | The tables below present a reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3). Level 3 (In millions) Corporate bonds and other States, municipalities and political subdivisions Asset-backed Equity securities Total Balance as of January 1, 2019 $ 222 $ — $ 197 $ 18 $ 437 Total realized and unrealized investment gains (losses): Reported in Net investment gains (losses) — — — (2 ) (2 ) Reported in Net investment income — — — — — Reported in Other comprehensive income (loss) 33 — 8 — 41 Total realized and unrealized investment gains (losses) 33 — 8 (2 ) 39 Purchases 256 — 48 2 306 Sales — — — — — Settlements (11 ) — (16 ) — (27 ) Transfers into Level 3 — — 45 — 45 Transfers out of Level 3 (32 ) — (117 ) — (149 ) Balance as of December 31, 2019 $ 468 $ — $ 165 $ 18 $ 651 Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2019 recognized in Net income (loss) in the period $ — $ — $ — $ (2 ) $ (2 ) Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2019 recognized in Other comprehensive income (loss) in the period 28 — 7 — 35 Level 3 (In millions) Corporate bonds and other States, municipalities and political subdivisions Asset-backed Equity securities Total Balance as of January 1, 2018 $ 98 $ 1 $ 335 $ 20 $ 454 Total realized and unrealized investment gains (losses): Reported in Net investment gains (losses) (1 ) — 5 (2 ) 2 Reported in Net investment income — — — — — Reported in Other comprehensive income (loss) (4 ) — (8 ) — (12 ) Total realized and unrealized investment gains (losses) (5 ) — (3 ) (2 ) (10 ) Purchases 117 — 162 — 279 Sales (5 ) — (72 ) — (77 ) Settlements (9 ) (1 ) (64 ) — (74 ) Transfers into Level 3 35 — 42 — 77 Transfers out of Level 3 (9 ) — (203 ) — (212 ) Balance as of December 31, 2018 $ 222 $ — $ 197 $ 18 $ 437 Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2018 recognized in Net income (loss) in the period $ — $ — $ (2 ) $ (2 ) $ (4 ) Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2018 recognized in Other comprehensive income (loss) in the period (5 ) — (4 ) — (9 ) |
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 tables 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. The weighted average rate is calculated based on fair value. December 31, 2019 Estimated Fair Value (In millions) Valuation Technique(s) Unobservable Input(s) Range (Weighted Average) Fixed maturity securities $ 525 Discounted cash flow Credit spread 1% - 6% (2%) December 31, 2018 Estimated Fair Value Valuation Technique(s) Unobservable Input(s) Range (Weighted Average) Fixed maturity securities $ 228 Discounted cash flow Credit spread 1% - 12% (3%) |
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 Consolidated Balance Sheets are presented in the following tables. December 31, 2019 Carrying Amount Estimated Fair Value (In millions) Level 1 Level 2 Level 3 Total Assets Mortgage loans $ 994 $ — $ — $ 1,025 $ 1,025 Note receivable 21 — — 21 21 Liabilities Long term debt $ 2,679 $ — $ 2,906 $ — $ 2,906 December 31, 2018 Carrying Estimated Fair Value (In millions) Level 1 Level 2 Level 3 Total Assets Mortgage loans $ 839 $ — $ — $ 827 $ 827 Note receivable 35 — — 35 35 Liabilities Long term debt $ 2,680 $ — $ 2,731 $ — $ 2,731 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Reconciliation between the Company's federal income tax (expense) benefit at statutory rates and the recorded income tax (expense) benefit | The following table presents a reconciliation between the Company's federal income tax expense at statutory rates and the recorded income tax expense. Years ended December 31 (In millions) 2019 2018 2017 Income tax expense at statutory rates $ (257 ) $ (203 ) $ (459 ) Tax benefit from tax exempt income 53 63 131 Foreign taxes and credits (1 ) (1 ) 3 State income taxes (14 ) (13 ) (7 ) Net deferred tax asset remeasurement — 6 (83 ) Other tax expense (4 ) (3 ) 4 Income tax expense $ (223 ) $ (151 ) $ (411 ) |
Current and deferred components of the Company's income tax (expense) benefit | The following table presents the current and deferred components of the Company's income tax expense. Years ended December 31 (In millions) 2019 2018 2017 Current tax expense $ (269 ) $ (171 ) $ (243 ) Deferred tax benefit (expense) 46 20 (168 ) Total income tax expense $ (223 ) $ (151 ) $ (411 ) |
Significant components of the Company's deferred tax assets and liabilities | The deferred tax effects of the significant components of the Company's deferred tax assets and liabilities are presented in the following table. December 31 (In millions) 2019 2018 Deferred Tax Assets: Insurance reserves: Property and casualty claim and claim adjustment expense reserves $ 129 $ 108 Unearned premium reserves 153 108 Receivables 11 15 Employee benefits 127 143 Deferred retroactive reinsurance benefit 82 79 Other assets 132 131 Gross deferred tax assets 634 584 Deferred Tax Liabilities: Investment valuation differences 40 44 Deferred acquisition costs 83 78 Net unrealized gains 264 14 Software and hardware 34 44 Other liabilities 14 12 Gross deferred tax liabilities 435 192 Net deferred tax asset $ 199 $ 392 |
Claim and Claim Adjustment Ex_2
Claim and Claim Adjustment Expense Reserves (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Net Incurred Claim and Claim Adjustment Expense [Line Items] | |
Schedule of liability for unpaid claims and claims adjustment expense | The following table presents a reconciliation between beginning and ending claim and claim adjustment expense reserves, including claim and claim adjustment expense reserves of the Life & Group segment. As of or for the years ended December 31 (In millions) 2019 2018 2017 Reserves, beginning of year: Gross $ 21,984 $ 22,004 $ 22,343 Ceded 4,019 3,934 4,094 Net reserves, beginning of year 17,965 18,070 18,249 Net incurred claim and claim adjustment expenses: Provision for insured events of current year 5,356 5,358 5,201 Increase (decrease) in provision for insured events of prior years (127 ) (179 ) (381 ) Amortization of discount 184 176 179 Total net incurred (1) 5,413 5,355 4,999 Net payments attributable to: Current year events (992 ) (1,046 ) (975 ) Prior year events (4,584 ) (4,285 ) (4,366 ) Total net payments (5,576 ) (5,331 ) (5,341 ) Foreign currency translation adjustment and other 83 (129 ) 163 Net reserves, end of year 17,885 17,965 18,070 Ceded reserves, end of year 3,835 4,019 3,934 Gross reserves, end of year $ 21,720 $ 21,984 $ 22,004 (1) Total net incurred above does not agree to Insurance claims and policyholders' benefits as reflected on the Consolidated Statements of Operations due to amounts related to retroactive reinsurance deferred gain accounting, uncollectible reinsurance and benefit expenses related to future policy benefits, which are not reflected in the table above. |
Gross and net carried claim and claim adjustment expense reserves | The following tables present the gross and net carried reserves. December 31, 2019 Specialty Commercial International Life & Group Corporate & Other Total (In millions) Gross Case Reserves $ 1,481 $ 3,937 $ 858 $ 3,576 $ 1,137 $ 10,989 Gross IBNR Reserves 3,757 4,719 1,018 140 1,097 10,731 Total Gross Carried Claim and Claim Adjustment Expense Reserves $ 5,238 $ 8,656 $ 1,876 $ 3,716 $ 2,234 $ 21,720 Net Case Reserves $ 1,343 $ 3,543 $ 759 $ 3,441 $ 92 $ 9,178 Net IBNR Reserves 3,333 4,306 869 116 83 8,707 Total Net Carried Claim and Claim Adjustment Expense Reserves $ 4,676 $ 7,849 $ 1,628 $ 3,557 $ 175 $ 17,885 December 31, 2018 Specialty Commercial International Life & Group Corporate & Other Total (In millions) Gross Case Reserves $ 1,623 $ 4,181 $ 867 $ 3,516 $ 1,208 $ 11,395 Gross IBNR Reserves 3,842 4,562 883 85 1,217 10,589 Total Gross Carried Claim and Claim Adjustment Expense Reserves $ 5,465 $ 8,743 $ 1,750 $ 3,601 $ 2,425 $ 21,984 Net Case Reserves $ 1,483 $ 3,831 $ 749 $ 3,364 $ 96 $ 9,523 Net IBNR Reserves 3,348 4,167 775 56 96 8,442 Total Net Carried Claim and Claim Adjustment Expense Reserves $ 4,831 $ 7,998 $ 1,524 $ 3,420 $ 192 $ 17,965 |
Net prior year development | The following table presents development recorded for the Specialty, Commercial, International and Corporate & Other segments. Years ended December 31 (In millions) 2019 2018 2017 Pretax (favorable) unfavorable development: Specialty $ (92 ) $ (150 ) $ (174 ) Commercial (2 ) (25 ) (115 ) International 21 (4 ) (9 ) Corporate & Other — (2 ) (10 ) Total pretax (favorable) unfavorable development $ (73 ) $ (181 ) $ (308 ) |
Short-duration insurance contracts, reconciliation of claims development to liability | The table below reconciles the net liability for unpaid claim and claim adjustment expenses to the amount presented on the Consolidated Balance Sheets. As of December 31 (In millions) 2019 Net liability for unpaid claim and claim adjustment expenses: Specialty $ 4,676 Commercial 7,849 International 1,628 Corporate & Other 175 Life & Group (1) 3,557 Total net claim and claim adjustment expenses 17,885 Reinsurance receivables: (2) Specialty 562 Commercial 807 International 248 Corporate & Other (3) 2,059 Life & Group 159 Total reinsurance receivables 3,835 Total gross liability for unpaid claim and claim adjustment expenses $ 21,720 (1) The Life & Group segment amounts are primarily related to long term care claim reserves, but also include amounts related to unfunded structured settlements arising from short duration contracts. Long term care policies are long duration contracts. (2) Reinsurance receivables presented are gross of the allowance for uncollectible reinsurance and do not include reinsurance receivables related to paid losses. (3) The Corporate & Other Reinsurance receivables are primarily related to A&EP claims covered under the Loss Portfolio Transfer (LPT). |
Specialty | |
Net Incurred Claim and Claim Adjustment Expense [Line Items] | |
Net prior year claim and allocated claim adjustment expense reserve development | The following table presents further detail of the development recorded for the Specialty segment. Years ended December 31 (In millions) 2019 2018 2017 Pretax (favorable) unfavorable development: Medical Professional Liability $ 75 $ 47 $ 30 Other Professional Liability and Management Liability (69 ) (127 ) (126 ) Surety (92 ) (70 ) (84 ) Warranty (15 ) (10 ) 4 Other 9 10 2 Total pretax (favorable) unfavorable development $ (92 ) $ (150 ) $ (174 ) |
Short-duration insurance contracts, reconciliation of claims development to liability | The table below provides the line of business composition of the net liability for unpaid claim and claim adjustment expenses for the Specialty segment. As of December 31 (In millions) 2019 Net liability for unpaid claim and claim adjustment expenses: Medical Professional Liability $ 1,429 Other Professional Liability and Management Liability 2,739 Surety 369 Warranty 29 Other 110 Total net liability for unpaid claim and claim adjustment expenses $ 4,676 |
Commercial | |
Net Incurred Claim and Claim Adjustment Expense [Line Items] | |
Net prior year claim and allocated claim adjustment expense reserve development | The following table presents further detail of the development recorded for the Commercial segment. Years ended December 31 (In millions) 2019 2018 2017 Pretax (favorable) unfavorable development: Commercial Auto $ (25 ) $ 1 $ (35 ) General Liability 54 32 (24 ) Workers' Compensation (13 ) (32 ) (63 ) Property and Other (18 ) (26 ) 7 Total pretax (favorable) unfavorable development $ (2 ) $ (25 ) $ (115 ) |
Short-duration insurance contracts, reconciliation of claims development to liability | The table below provides the line of business composition of the net liability for unpaid claim and claim adjustment expenses for the Commercial segment. As of December 31 (In millions) 2019 Net Claim and claim adjustment expenses: Commercial Auto $ 404 General Liability 3,176 Workers' Compensation 3,932 Property and Other 337 Total net liability for claim and claim adjustment expenses $ 7,849 |
International | |
Net Incurred Claim and Claim Adjustment Expense [Line Items] | |
Net prior year claim and allocated claim adjustment expense reserve development | The following table presents further detail of the development recorded for the International segment. Years ended December 31 (In millions) 2019 2018 2017 Pretax (favorable) unfavorable development: Casualty $ (20 ) $ (17 ) $ 9 Property 23 19 (12 ) Energy and Marine 2 (19 ) (12 ) Specialty (1) 16 13 6 Total pretax (favorable) unfavorable development $ 21 $ (4 ) $ (9 ) |
Short-duration insurance contracts, reconciliation of claims development to liability | The table below provides the composition of the net liability for unpaid claim and claim adjustment expenses for the International segment. As of December 31 (In millions) 2019 Net Claim and claim adjustment expenses: International excluding Hardy $ 1,155 Hardy 473 Total net liability for claim and claim adjustment expenses $ 1,628 |
CNAF Consolidated | |
Net Incurred Claim and Claim Adjustment Expense [Line Items] | |
Schedule of historical claims duration | The table below presents information about average historical claims duration as of December 31, 2019 and is presented as required supplementary information, which is unaudited. Average Annual Percentage Payout of Ultimate Net Incurred Claim and Allocated Claim Adjustment Expenses in Year: 1 2 3 4 5 6 7 8 9 10 Total Specialty Medical Professional Liability 3.8 % 20.0 % 24.3 % 19.4 % 12.4 % 7.8 % 5.1 % 3.1 % 1.1 % 0.8 % 97.8 % Other Professional Liability and Management Liability 6.6 % 22.6 % 21.7 % 16.9 % 10.5 % 6.0 % 4.9 % 3.3 % 3.8 % 0.7 % 97.0 % Surety (1) 20.0 % 44.5 % 21.0 % 4.4 % 2.2 % 0.9 % (2.5 )% (1.1 )% — % 1.6 % 91.0 % Commercial Commercial Auto 28.6 % 24.0 % 18.6 % 14.3 % 9.4 % 3.2 % 1.5 % 0.4 % — % — % 100.0 % General Liability 4.3 % 15.8 % 19.0 % 20.1 % 15.7 % 8.7 % 6.0 % 2.5 % 1.5 % 1.6 % 95.2 % Workers' Compensation 14.1 % 21.4 % 13.9 % 10.3 % 7.0 % 3.7 % 2.9 % 2.7 % 1.4 % 0.8 % 78.2 % International International - Excluding Hardy 20.8 % 25.7 % 11.0 % 7.3 % 6.8 % 5.3 % 5.0 % 1.7 % 1.2 % 2.1 % 86.9 % International - Hardy (2) 23.3 % 39.6 % 8.7 % 5.6 % 4.5 % 2.5 % 2.8 % 87.0 % (1) Due to the nature of the Surety business, average annual percentage payout of ultimate net incurred claim and allocated claim adjustment expenses has been calculated using only the payouts of mature accident years presented in the loss reserve development tables. (2) Average historical claims duration for Hardy is presented prospectively beginning with the first full year subsequent to acquisition, 2013. |
Impact of loss portfolio transfer on the consolidated statement of operations | The following table presents the impact of the Loss Portfolio Transfer on the Consolidated Statements of Operations. Years ended December 31 (In millions) 2019 2018 2017 Additional amounts ceded under LPT: Net A&EP adverse development before consideration of LPT $ 150 $ 178 $ 60 Provision for uncollectible third-party reinsurance on A&EP (25 ) (16 ) — Total additional amounts ceded under LPT 125 162 60 Retroactive reinsurance benefit recognized (107 ) (114 ) (68 ) Pretax impact of deferred retroactive reinsurance $ 18 $ 48 $ (8 ) |
Hardy | International | |
Net Incurred Claim and Claim Adjustment Expense [Line Items] | |
Short-duration contracts net incurred claims and allocated claim adjustment expenses | Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year As of December 31, 2019 (In millions, except reported claims data) Net Claim and Allocated Claim Adjustment Expense Reserves at Acquisition Net Incurred Claim and Allocated Claim Adjustment Expenses in 2012 (1)(2) Total Acquired Net Claim and Allocated Claim Adjustment Expense Reserves and 2012 Incurreds 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 IBNR Cumulative Number of Claims Accident Year 2010 $ 48 $ (10 ) $ 39 $ 48 $ 52 $ 46 $ 53 $ 52 $ 51 $ 51 $ (1 ) 4,565 2011 126 (1 ) 125 136 136 140 139 139 142 142 (1 ) 6,292 2012 33 71 104 105 112 119 113 113 116 115 1 6,950 2013 131 146 138 140 141 144 145 2 7,724 2014 185 183 177 171 171 172 — 8,242 2015 191 180 179 179 178 1 9,274 2016 229 247 236 225 18 10,152 2017 245 255 244 15 11,837 2018 273 305 43 12,646 2019 223 120 6,271 Total $ 1,800 $ 198 |
Short-duration contracts net cumulative paid claim adjustment expenses reconciliation of total liability for unpaid claim and claim adjustment expense | Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year (In millions) 2012 (1)(2) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 Accident Year 2010 $ 19 $ 36 $ 43 $ 45 $ 48 $ 49 $ 47 $ 47 2011 31 84 124 129 133 134 136 137 2012 14 80 100 109 107 109 110 111 2013 38 102 121 127 131 134 138 2014 56 123 142 151 157 162 2015 30 98 130 145 158 2016 63 145 172 182 2017 53 151 184 2018 55 176 2019 44 Total $ 1,339 Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 461 Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010 3 Liability for unallocated claim adjustment expenses for accident years presented 9 Total net liability for unpaid claim and claim adjustment expenses $ 473 |
Short-duration contracts reserve development | Net strengthening (releases) of prior accident year reserves is presented in the following table. For the years ended December 31 Calendar Year (In millions) 2012 (1)(2) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 Total (3) Accident Year 2010 $ (9 ) $ 9 $ 4 $ (6 ) $ 7 $ (1 ) $ (1 ) $ — $ 3 2011 (1 ) 11 — 4 (1 ) — 3 — 16 2012 1 7 7 (6 ) — 3 (1 ) 11 2013 15 (8 ) 2 1 3 1 14 2014 (2 ) (6 ) (6 ) — 1 (13 ) 2015 (11 ) (1 ) — (1 ) (13 ) 2016 18 (11 ) (11 ) (4 ) 2017 10 (11 ) (1 ) 2018 32 32 (1) Data presented for these calendar years is required supplemental information, which is unaudited. (2) Data presented for this calendar year is post-acquisition of Hardy. (3) The amounts included in the loss reserve development tables above are presented at the year-end 2019 |
Medical Professional Liability | Specialty | |
Net Incurred Claim and Claim Adjustment Expense [Line Items] | |
Short-duration contracts net incurred claims and allocated claim adjustment expenses | Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year As of December 31, 2019 (In millions, except reported claims data) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 IBNR Cumulative Number of Claims Accident Year 2010 $ 402 $ 412 $ 423 $ 426 $ 415 $ 395 $ 365 $ 360 $ 356 $ 369 $ 1 14,624 2011 429 437 443 468 439 434 437 437 439 2 16,526 2012 464 469 508 498 493 484 493 499 8 17,724 2013 462 479 500 513 525 535 545 27 19,510 2014 450 489 537 530 535 529 16 19,723 2015 433 499 510 494 488 29 18,029 2016 427 487 485 499 63 15,823 2017 412 449 458 127 14,636 2018 404 429 216 13,760 2019 430 364 10,467 Total $ 4,685 $ 853 |
Short-duration contracts net cumulative paid claim adjustment expenses reconciliation of total liability for unpaid claim and claim adjustment expense | Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year (In millions) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 Accident Year 2010 $ 10 $ 86 $ 173 $ 257 $ 306 $ 326 $ 337 $ 346 $ 350 $ 353 2011 17 109 208 295 347 375 398 409 414 2012 14 117 221 323 388 427 457 479 2013 17 119 255 355 414 462 495 2014 23 136 258 359 417 472 2015 22 101 230 313 384 2016 18 121 246 339 2017 19 107 235 2018 21 115 2019 17 Total $ 3,303 Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 1,382 Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010 22 Liability for unallocated claim adjustment expenses for accident years presented 25 Total net liability for unpaid claim and claim adjustment expenses $ 1,429 |
Short-duration contracts reserve development | Net strengthening (releases) of prior accident year reserves is presented in the following table. For the years ended December 31 Calendar Year (In millions) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 Total Accident Year 2010 $ 10 $ 11 $ 3 $ (11 ) $ (20 ) $ (30 ) $ (5 ) $ (4 ) $ 13 $ (33 ) 2011 8 6 25 (29 ) (5 ) 3 — 2 10 2012 5 39 (10 ) (5 ) (9 ) 9 6 35 2013 17 21 13 12 10 10 83 2014 39 48 (7 ) 5 (6 ) 79 2015 66 11 (16 ) (6 ) 55 2016 60 (2 ) 14 72 2017 37 9 46 2018 25 25 Total net development for the accident years presented above 65 39 67 Total net development for accident years prior to 2010 (28 ) 9 6 Total unallocated claim adjustment expense development (7 ) (1 ) 2 Total $ 30 $ 47 $ 75 (1) Data presented for these calendar years is required supplemental information, which is unaudited. |
Other Professional Liability and Management Liability | Specialty | |
Net Incurred Claim and Claim Adjustment Expense [Line Items] | |
Short-duration contracts net incurred claims and allocated claim adjustment expenses | Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year As of December 31, 2019 (In millions, except reported claims data) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 IBNR Cumulative Number of Claims Accident Year 2010 $ 828 $ 828 $ 848 $ 848 $ 847 $ 837 $ 824 $ 827 $ 821 $ 821 $ 9 17,891 2011 880 908 934 949 944 911 899 888 885 21 18,738 2012 923 909 887 878 840 846 833 831 18 18,499 2013 884 894 926 885 866 863 850 45 17,928 2014 878 898 885 831 835 854 74 17,553 2015 888 892 877 832 807 120 17,390 2016 901 900 900 904 188 17,890 2017 847 845 813 308 18,015 2018 850 864 460 19,468 2019 837 714 16,722 Total $ 8,466 $ 1,957 |
Short-duration contracts net cumulative paid claim adjustment expenses reconciliation of total liability for unpaid claim and claim adjustment expense | Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year (In millions) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 Accident Year 2010 $ 31 $ 204 $ 405 $ 541 $ 630 $ 670 $ 721 $ 752 $ 784 $ 790 2011 71 314 503 605 683 726 781 796 828 2012 56 248 400 573 651 711 755 792 2013 54 249 447 618 702 754 771 2014 51 223 392 515 647 707 2015 60 234 404 542 612 2016 64 248 466 625 2017 57 222 394 2018 54 282 2019 64 Total $ 5,865 Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 2,601 Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010 88 Liability for unallocated claim adjustment expenses for accident years presented 50 Total net liability for unpaid claim and claim adjustment expenses $ 2,739 |
Short-duration contracts reserve development | Net strengthening (releases) of prior accident year reserves is presented in the following table. For the years ended December 31 Calendar Year (In millions) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 Total Accident Year 2010 $ — $ 20 $ — $ (1 ) $ (10 ) $ (13 ) $ 3 $ (6 ) $ — $ (7 ) 2011 28 26 15 (5 ) (33 ) (12 ) (11 ) (3 ) 5 2012 (14 ) (22 ) (9 ) (38 ) 6 (13 ) (2 ) (92 ) 2013 10 32 (41 ) (19 ) (3 ) (13 ) (34 ) 2014 20 (13 ) (54 ) 4 19 (24 ) 2015 4 (15 ) (45 ) (25 ) (81 ) 2016 (1 ) — 4 3 2017 (2 ) (32 ) (34 ) 2018 14 14 Total net development for the accident years presented above (92 ) (76 ) (38 ) Total net development for accident years prior to 2010 (27 ) (44 ) (17 ) Total unallocated claim adjustment expense development (7 ) (7 ) (14 ) Total $ (126 ) $ (127 ) $ (69 ) (1) Data presented for these calendar years is required supplemental information, which is unaudited. |
Surety | Specialty | |
Net Incurred Claim and Claim Adjustment Expense [Line Items] | |
Short-duration contracts net incurred claims and allocated claim adjustment expenses | Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year As of December 31, 2019 (In millions, except reported claims data) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 IBNR Cumulative Number of Claims Accident Year 2010 $ 112 $ 112 $ 111 $ 84 $ 76 $ 66 $ 63 $ 59 $ 61 $ 61 $ — 5,982 2011 120 121 116 87 75 70 66 62 62 2 5,813 2012 120 122 98 70 52 45 39 38 1 5,568 2013 120 121 115 106 91 87 83 3 5,062 2014 123 124 94 69 60 45 4 5,078 2015 131 131 104 79 63 11 4,976 2016 124 124 109 84 36 5,379 2017 120 115 103 54 5,496 2018 114 108 76 5,451 2019 119 102 3,549 Total $ 766 $ 289 |
Short-duration contracts net cumulative paid claim adjustment expenses reconciliation of total liability for unpaid claim and claim adjustment expense | Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year (In millions) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 Accident Year 2010 $ 13 $ 34 $ 50 $ 55 $ 57 $ 58 $ 55 $ 52 $ 52 $ 53 2011 19 42 55 58 60 60 56 57 57 2012 5 32 34 35 35 36 37 37 2013 16 40 69 78 78 78 77 2014 7 30 38 36 38 38 2015 7 26 38 40 42 2016 5 37 45 45 2017 23 37 41 2018 5 25 2019 12 Total $ 427 Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 339 Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010 10 Liability for unallocated claim adjustment expenses for accident years presented 20 Total net liability for unpaid claim and claim adjustment expenses $ 369 |
Short-duration contracts reserve development | Net strengthening (releases) of prior accident year reserves is presented in the following table. For the years ended December 31 Calendar Year (In millions) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 Total Accident Year 2010 $ — $ (1 ) $ (27 ) $ (8 ) $ (10 ) $ (3 ) $ (4 ) $ 2 $ — $ (51 ) 2011 1 (5 ) (29 ) (12 ) (5 ) (4 ) (4 ) — (58 ) 2012 2 (24 ) (28 ) (18 ) (7 ) (6 ) (1 ) (82 ) 2013 1 (6 ) (9 ) (15 ) (4 ) (4 ) (37 ) 2014 1 (30 ) (25 ) (9 ) (15 ) (78 ) 2015 — (27 ) (25 ) (16 ) (68 ) 2016 — (15 ) (25 ) (40 ) 2017 (5 ) (12 ) (17 ) 2018 (6 ) (6 ) Total net development for the accident years presented above (82 ) (66 ) (79 ) Total net development for accident years prior to 2010 1 (4 ) (3 ) Total unallocated claim adjustment expense development (3 ) — (10 ) Total $ (84 ) $ (70 ) $ (92 ) (1) Data presented for these calendar years is required supplemental information, which is unaudited. |
Commercial Auto | Commercial | |
Net Incurred Claim and Claim Adjustment Expense [Line Items] | |
Short-duration contracts net incurred claims and allocated claim adjustment expenses | Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year As of December 31, 2019 (In millions, except reported claims data) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 IBNR Cumulative Number of Claims Accident Year 2010 $ 267 $ 283 $ 287 $ 291 $ 298 $ 293 $ 289 $ 288 $ 288 $ 288 $ 1 48,035 2011 268 281 288 302 300 294 294 294 291 — 47,909 2012 275 289 299 303 307 299 299 297 3 46,288 2013 246 265 265 249 245 245 241 2 39,429 2014 234 223 212 205 205 201 3 33,622 2015 201 199 190 190 183 7 30,418 2016 198 186 186 186 7 30,414 2017 199 198 200 9 30,850 2018 229 227 47 33,959 2019 257 128 31,455 Total $ 2,371 $ 207 |
Short-duration contracts net cumulative paid claim adjustment expenses reconciliation of total liability for unpaid claim and claim adjustment expense | Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year (In millions) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 Accident Year 2010 $ 74 $ 141 $ 203 $ 246 $ 271 $ 281 $ 286 $ 287 $ 287 $ 287 2011 79 145 199 248 274 284 287 289 289 2012 78 160 220 259 282 285 290 291 2013 74 135 168 200 225 234 238 2014 64 102 137 166 187 196 2015 52 96 130 153 172 2016 52 93 126 154 2017 58 107 150 2018 66 128 2019 77 Total $ 1,982 Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 389 Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010 1 Liability for unallocated claim adjustment expenses for accident years presented 14 Total net liability for unpaid claim and claim adjustment expenses $ 404 |
Short-duration contracts reserve development | Net strengthening (releases) of prior accident year reserves is presented in the following table. For the years ended December 31 Calendar Year (In millions) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 Total Accident Year 2010 $ 16 $ 4 $ 4 $ 7 $ (5 ) $ (4 ) $ (1 ) $ — $ — $ 21 2011 13 7 14 (2 ) (6 ) — — (3 ) 23 2012 14 10 4 4 (8 ) — (2 ) 22 2013 19 — (16 ) (4 ) — (4 ) (5 ) 2014 (11 ) (11 ) (7 ) — (4 ) (33 ) 2015 (2 ) (9 ) — (7 ) (18 ) 2016 (12 ) — — (12 ) 2017 (1 ) 2 1 2018 (2 ) (2 ) Total net development for the accident years presented above (41 ) (1 ) (20 ) Total net development for accident years prior to 2010 4 1 (4 ) Total unallocated claim adjustment expense development 2 1 (1 ) Total $ (35 ) $ 1 $ (25 ) (1) Data presented for these calendar years is required supplemental information, which is unaudited. |
General Liability | Commercial | |
Net Incurred Claim and Claim Adjustment Expense [Line Items] | |
Short-duration contracts net incurred claims and allocated claim adjustment expenses | Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year As of December 31, 2019 (In millions, except reported claims data) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 IBNR Cumulative Number of Claims Accident Year 2010 $ 646 $ 664 $ 658 $ 709 $ 750 $ 726 $ 697 $ 691 $ 691 $ 690 $ 19 44,229 2011 591 589 631 677 676 681 670 669 667 20 39,361 2012 587 611 639 636 619 635 635 630 31 35,219 2013 650 655 650 655 613 623 620 27 33,570 2014 653 658 654 631 635 658 57 27,877 2015 581 576 574 589 600 73 23,834 2016 623 659 667 671 166 23,817 2017 632 632 632 226 21,114 2018 653 644 408 17,889 2019 680 602 12,916 Total $ 6,492 $ 1,629 |
Short-duration contracts net cumulative paid claim adjustment expenses reconciliation of total liability for unpaid claim and claim adjustment expense | Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year (In millions) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 Accident Year 2010 $ 27 $ 145 $ 280 $ 429 $ 561 $ 611 $ 642 $ 652 $ 656 $ 667 2011 28 148 273 411 517 568 602 622 638 2012 28 132 247 374 454 510 559 579 2013 31 128 240 352 450 510 551 2014 31 119 247 376 481 547 2015 19 110 230 357 446 2016 32 163 279 407 2017 23 118 250 2018 33 107 2019 25 Total $ 4,217 Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 2,275 Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010 836 Liability for unallocated claim adjustment expenses for accident years presented 65 Total net liability for unpaid claim and claim adjustment expenses $ 3,176 |
Short-duration contracts reserve development | Net strengthening (releases) of prior accident year reserves is presented in the following table. For the years ended December 31 Calendar Year (In millions) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 Total Accident Year 2010 $ 18 $ (6 ) $ 51 $ 41 $ (24 ) $ (29 ) $ (6 ) $ — $ (1 ) $ 44 2011 (2 ) 42 46 (1 ) 5 (11 ) (1 ) (2 ) 76 2012 24 28 (3 ) (17 ) 16 — (5 ) 43 2013 5 (5 ) 5 (42 ) 10 (3 ) (30 ) 2014 5 (4 ) (23 ) 4 23 5 2015 (5 ) (2 ) 15 11 19 2016 36 8 4 48 2017 — — — 2018 (9 ) (9 ) Total net development for the accident years presented above (32 ) 36 18 Total net development for accident years prior to 2010 — — 29 Total unallocated claim adjustment expense development 8 (4 ) 7 Total $ (24 ) $ 32 $ 54 (1) Data presented for these calendar years is required supplemental information, which is unaudited. |
Workers' Compensation | Commercial | |
Net Incurred Claim and Claim Adjustment Expense [Line Items] | |
Short-duration contracts net incurred claims and allocated claim adjustment expenses | Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year As of December 31, 2019 (In millions, except reported claims data) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 IBNR Cumulative Number of Claims Accident Year 2010 $ 583 $ 632 $ 654 $ 676 $ 698 $ 710 $ 730 $ 733 $ 732 $ 735 $ 55 49,333 2011 607 641 647 659 651 676 676 674 688 40 45,959 2012 601 627 659 669 678 673 671 668 67 42,586 2013 537 572 592 618 593 582 561 93 38,688 2014 467 480 479 452 450 446 99 33,480 2015 422 431 406 408 394 130 31,861 2016 426 405 396 382 144 31,945 2017 440 432 421 138 33,029 2018 450 440 185 34,647 2019 452 257 29,795 Total $ 5,187 $ 1,208 |
Short-duration contracts net cumulative paid claim adjustment expenses reconciliation of total liability for unpaid claim and claim adjustment expense | Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year (In millions) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 Accident Year 2010 $ 97 $ 251 $ 359 $ 442 $ 510 $ 542 $ 577 $ 615 $ 625 $ 631 2011 99 249 358 438 478 522 564 571 581 2012 87 232 342 416 470 509 524 536 2013 80 213 300 370 417 419 411 2014 61 159 215 258 282 290 2015 51 131 180 212 231 2016 53 129 169 198 2017 63 151 207 2018 68 163 2019 71 Total $ 3,319 Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 1,868 Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010 2,061 Other (2) (22 ) Liability for unallocated claim adjustment expenses for accident years presented 25 Total net liability for unpaid claim and claim adjustment expenses $ 3,932 |
Short-duration contracts reserve development | Net strengthening (releases) of prior accident year reserves is presented in the following table. For the years ended December 31 Calendar Year (In millions) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 Total Accident Year 2010 $ 49 $ 22 $ 22 $ 22 $ 12 $ 20 $ 3 $ (1 ) $ 3 $ 152 2011 34 6 12 (8 ) 25 — (2 ) 14 81 2012 26 32 10 9 (5 ) (2 ) (3 ) 67 2013 35 20 26 (25 ) (11 ) (21 ) 24 2014 13 (1 ) (27 ) (2 ) (4 ) (21 ) 2015 9 (25 ) 2 (14 ) (28 ) 2016 (21 ) (9 ) (14 ) (44 ) 2017 (8 ) (11 ) (19 ) 2018 (10 ) (10 ) Total net development for the accident years presented above (100 ) (33 ) (60 ) Adjustment for development on a discounted basis (3 ) — 3 Total net development for accident years prior to 2010 39 8 21 Total unallocated claim adjustment expense development 1 (7 ) 23 Total $ (63 ) $ (32 ) $ (13 ) (1) Data presented for these calendar years is required supplemental information, which is unaudited. (2) Other includes the effect of discounting lifetime claim reserves. |
Excluding Hardy | International | |
Net Incurred Claim and Claim Adjustment Expense [Line Items] | |
Short-duration contracts net incurred claims and allocated claim adjustment expenses | Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year As of December 31, 2019 (In millions, except reported claims data) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 IBNR Cumulative Number of Claims Accident Year 2010 $ 238 $ 234 $ 228 $ 223 $ 213 $ 207 $ 200 $ 194 $ 190 $ 187 $ 6 21,952 2011 271 272 264 244 233 226 224 221 214 3 24,589 2012 272 279 264 256 256 249 242 236 19 24,978 2013 294 295 287 267 263 255 246 18 23,932 2014 282 297 297 285 277 294 31 24,912 2015 296 311 310 292 286 37 23,305 2016 290 309 294 292 59 17,626 2017 306 371 393 133 18,176 2018 376 394 132 19,756 2019 350 185 13,415 Total $ 2,892 $ 623 |
Short-duration contracts net cumulative paid claim adjustment expenses reconciliation of total liability for unpaid claim and claim adjustment expense | Cumulative Net Paid Claims and Allocated Claim Adjustment Expenses are presented in the following table. As of December 31 Calendar Year (In millions) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 Accident Year 2010 $ 49 $ 99 $ 122 $ 137 $ 151 $ 160 $ 169 $ 172 $ 174 $ 178 2011 45 116 139 152 166 178 186 190 193 2012 45 115 148 168 184 196 205 209 2013 50 114 141 158 173 183 202 2014 52 123 151 169 186 207 2015 57 135 165 186 209 2016 67 134 161 184 2017 65 149 190 2018 91 169 2019 75 Total $ 1,816 Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 1,076 Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010 52 Liability for unallocated claim adjustment expenses for accident years presented 27 Total net liability for unpaid claim and claim adjustment expenses $ 1,155 |
Short-duration contracts reserve development | Net strengthening (releases) of prior accident year reserves is presented in the following table. For the years ended December 31 Calendar Year (In millions) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) 2017 (1) 2018 (1) 2019 Total (2) Accident Year 2010 $ (4 ) $ (6 ) $ (5 ) $ (10 ) $ (6 ) $ (7 ) $ (6 ) $ (4 ) $ (3 ) $ (51 ) 2011 1 (8 ) (20 ) (11 ) (7 ) (2 ) (3 ) (7 ) (57 ) 2012 7 (15 ) (8 ) — (7 ) (7 ) (6 ) (36 ) 2013 1 (8 ) (20 ) (4 ) (8 ) (9 ) (48 ) 2014 15 — (12 ) (8 ) 17 12 2015 15 (1 ) (18 ) (6 ) (10 ) 2016 19 (15 ) (2 ) 2 2017 65 22 87 2018 18 18 (1) Data presented for these calendar years is required supplemental information, which is unaudited. (2) The amounts included in the loss reserve development tables above are presented at the year-end 2019 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Reinsurance Disclosures [Abstract] | |
Components of Reinsurance Receivables | The following table presents the amounts receivable from reinsurers. December 31 (In millions) 2019 2018 Reinsurance receivables related to insurance reserves: Ceded claim and claim adjustment expenses $ 3,835 $ 4,019 Ceded future policy benefits 226 233 Reinsurance receivables related to paid losses 143 203 Reinsurance receivables 4,204 4,455 Allowance for uncollectible reinsurance (25 ) (29 ) Reinsurance receivables, net of allowance for uncollectible reinsurance $ 4,179 $ 4,426 |
Components of Earned and Written Premiums | The effects of reinsurance on earned premiums and written premiums are presented in the following tables. (In millions) Direct Assumed Ceded Net Assumed/ Net % 2019 Earned Premiums Property and casualty $ 11,021 $ 288 $ 4,401 $ 6,908 4.2 % Long term care 470 50 — 520 9.6 % Total earned premiums $ 11,491 $ 338 $ 4,401 $ 7,428 4.6 % 2018 Earned Premiums Property and casualty $ 10,857 $ 305 $ 4,380 $ 6,782 4.5 % Long term care 480 50 — 530 9.4 % Total earned premiums $ 11,337 $ 355 $ 4,380 $ 7,312 4.9 % 2017 Earned Premiums Property and casualty $ 10,447 $ 317 $ 4,315 $ 6,449 4.9 % Long term care 489 50 — 539 9.3 % Total earned premiums $ 10,936 $ 367 $ 4,315 $ 6,988 5.3 % (In millions) Direct Assumed Ceded Net Assumed/ Net % 2019 Written Premiums Property and casualty $ 11,421 $ 281 $ 4,569 $ 7,133 3.9 % Long term care 473 50 — 523 9.6 % Total written premiums $ 11,894 $ 331 $ 4,569 $ 7,656 4.3 % 2018 Written Premiums Property and casualty $ 11,094 $ 310 $ 4,583 $ 6,821 4.5 % Long term care 474 50 — 524 9.5 % Total written premiums $ 11,568 $ 360 $ 4,583 $ 7,345 4.9 % 2017 Written Premiums Property and casualty $ 10,655 $ 327 $ 4,449 $ 6,533 5.0 % Long term care 486 50 — 536 9.3 % Total written premiums $ 11,141 $ 377 $ 4,449 $ 7,069 5.3 % |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of debt instruments | Debt is composed of the following long term obligations. December 31 (In millions) 2019 2018 Senior notes of CNAF: 5.875%, face amount of $500, due August 15, 2020 (1) $ — $ 499 5.750%, face amount of $400, due August 15, 2021 399 399 3.950%, face amount of $550, due May 15, 2024 548 547 4.500%, face amount of $500, due March 1, 2026 498 498 3.450%, face amount of $500, due August 15, 2027 496 495 3.900%, face amount of $500, due May 1, 2029 496 — Debenture of CNAF, 7.250%, face amount of $243, due November 15, 2023 242 242 Total $ 2,679 $ 2,680 (1) The Company redeemed these notes in the second quarter of 2019. |
Maturity of debt | The combined aggregate maturities for debt as of December 31, 2019 are presented in the following table. (In millions) 2020 $ — 2021 400 2022 — 2023 243 2024 550 Thereafter 1,500 Less discount (14 ) Total $ 2,679 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Funded status | The following table presents a reconciliation of benefit obligations and plan assets. Pension Benefits Postretirement Benefits (In millions) 2019 2018 2019 2018 Benefit obligation as of January 1 $ 2,466 $ 2,749 $ 9 $ 11 Changes in benefit obligation: Service cost — — — — Interest cost 100 93 — — Participants' contributions — — 4 3 Actuarial (gain) loss 261 (187 ) 1 — Benefits paid (169 ) (166 ) (6 ) (5 ) Foreign currency translation and other 3 (7 ) — — Settlements — (16 ) — — Benefit obligation as of December 31 2,661 2,466 8 9 Fair value of plan assets as of January 1 2,025 2,261 — — Change in plan assets: Actual return on plan assets 292 (69 ) — — Company contributions 134 23 2 2 Participants' contributions — — 4 3 Benefits paid (169 ) (166 ) (6 ) (5 ) Foreign currency translation and other 3 (8 ) — — Settlements — (16 ) — — Fair value of plan assets as of December 31 2,285 2,025 — — Funded status $ (376 ) $ (441 ) $ (8 ) $ (9 ) Amounts recognized on the Consolidated Balance Sheets as of December 31: Other assets $ 5 $ 9 $ — $ — Other liabilities (381 ) (450 ) (8 ) (9 ) Net amount recognized $ (376 ) $ (441 ) $ (8 ) $ (9 ) Amounts recognized in Accumulated other comprehensive income, not yet recognized in net periodic cost (benefit): Prior service credit $ — $ — $ — $ — Net actuarial (gain) loss 1,056 984 (2 ) (3 ) Net amount recognized $ 1,056 $ 984 $ (2 ) $ (3 ) |
Components of net periodic cost (benefit) | The components of net periodic pension cost (benefit) are presented in the following table. Years ended December 31 (In millions) 2019 2018 2017 Net periodic pension cost (benefit) Service cost $ — $ — $ — Non-service cost (benefit): Interest cost on projected benefit obligation 100 93 103 Expected return on plan assets (142 ) (159 ) (154 ) Amortization of net actuarial (gain) loss 39 37 35 Settlement loss — 6 9 Total non-service cost (benefit) (3 ) (23 ) (7 ) Total net periodic pension cost (benefit) $ (3 ) $ (23 ) $ (7 ) |
Schedule of amounts recognized in Other comprehensive income | The amounts recognized in Other comprehensive income are presented in the following table. Years ended December 31 (In millions) 2019 2018 2017 Pension and postretirement benefits Amounts arising during the period $ (112 ) $ (41 ) $ (31 ) Settlement — 6 9 Reclassification adjustment relating to prior service credit — (2 ) (2 ) Reclassification adjustment relating to actuarial loss 39 36 35 Total increase (decrease) in Other comprehensive income $ (73 ) $ (1 ) $ 11 |
Schedule of estimated amounts to be recognized from Accumulated other comprehensive income into net periodic cost (benefit) during next fiscal year | The amounts recognized in Other comprehensive income are presented in the following table. Years ended December 31 (In millions) 2019 2018 2017 Pension and postretirement benefits Amounts arising during the period $ (112 ) $ (41 ) $ (31 ) Settlement — 6 9 Reclassification adjustment relating to prior service credit — (2 ) (2 ) Reclassification adjustment relating to actuarial loss 39 36 35 Total increase (decrease) in Other comprehensive income $ (73 ) $ (1 ) $ 11 |
Actuarial assumptions for benefit obligations and for net cost or benefit | Actuarial assumptions used for the CNA Retirement Plan and CNA Health and Group Benefits Program to determine benefit obligations are presented in the following table. The interest crediting rate is the weighted average interest rate applied to the individual pension balances for employees who elected to cease accruals effective December 31, 1999. December 31 2019 2018 Pension benefits Discount rate 3.150 % 4.250 % Interest crediting rate 5.000 5.000 Postretirement benefits Discount rate 2.300 % 3.550 % Actuarial assumptions used for the CNA Retirement Plan and CNA Health and Group Benefits Program to determine net cost or benefit are presented in the following table. Years ended December 31 2019 2018 2017 Pension benefits Discount rate 4.250 % 3.550 % 3.950 % Expected long term rate of return 7.500 7.500 7.500 Interest crediting rate 5.000 5.000 5.000 Postretirement benefits Discount rate 3.550 % 2.750 % 2.750 % |
Fair value of plan assets measured on a recurring basis | Pension plan assets measured at fair value on a recurring basis as well as cash are presented in the following tables. December 31, 2019 (In millions) Level 1 Level 2 Level 3 Total Assets Fixed maturity securities: Corporate bonds and other $ — $ 587 $ 10 $ 597 States, municipalities and political subdivisions — 51 — 51 Asset-backed — 154 — 154 Total fixed maturity securities — 792 10 802 Equity securities 458 128 — 586 Short term investments 55 7 — 62 Other assets — 9 — 9 Cash 13 — — 13 Total assets measured at fair value $ 526 $ 936 $ 10 1,472 Total limited partnerships measured at net asset value (1) 813 Total $ 2,285 December 31, 2018 (In millions) Level 1 Level 2 Level 3 Total Assets Fixed maturity securities: Corporate bonds and other $ — $ 472 $ 10 $ 482 States, municipalities and political subdivisions — 58 — 58 Asset-backed — 165 — 165 Total fixed maturity securities — 695 10 705 Equity securities 331 110 — 441 Short term investments 27 54 — 81 Other assets — 9 — 9 Cash — — — — Total assets measured at fair value $ 358 $ 868 $ 10 1,236 Total limited partnerships measured at net asset value (1) 789 Total $ 2,025 (1) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table for these investments are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Plan's Statement of Financial Position. |
Schedule of expected benefit payments | The table below presents the estimated future minimum benefit payments to participants as of December 31, 2019 . (In millions) Pension Benefits Postretirement Benefits 2020 $ 178 $ 1 2021 176 1 2022 180 1 2023 178 1 2024 178 1 2025-2029 841 2 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Restricted shares, performance-based restricted share units and performance share unit activity | The following table presents activity for non-vested RSUs and performance share units under the Plan in 2019 . Number of Awards Weighted Average Grant Date Fair Value Balance as of January 1, 2019 2,204,148 $ 43.98 Awards granted 1,051,053 43.86 Awards vested (801,504 ) 36.81 Awards forfeited, canceled or expired (379,425 ) 45.98 Performance-based adjustment 40,914 44.86 Balance as of December 31, 2019 2,115,186 46.25 |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets, Gross (Excluding Goodwill) [Abstract] | |
Schedule of Other Intangible Assets | Other intangible assets are presented in the following table. December 31 2019 2018 (In millions) Economic Useful Life Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Finite-lived intangible assets: Trade name 8 years $ 7 $ 6 $ 6 $ 5 Distribution channel 15 years 11 5 10 4 Total finite-lived intangible assets 18 11 16 9 Indefinite-lived intangible assets: Syndicate capacity 46 45 Agency force 16 16 Total indefinite-lived intangible assets 62 61 Total other intangible assets $ 80 $ 11 $ 77 $ 9 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases, Operating [Abstract] | |
Assets and liabilities | The following table presents operating lease ROU assets and lease liabilities. (In millions) December 31, 2019 Operating lease ROU assets $ 220 Operating lease liabilities 301 |
Operating lease, liability, maturity | The following table presents the maturities of operating lease liabilities as of December 31, 2019 . (In millions) Operating Leases 2020 $ 38 2021 43 2022 40 2023 34 2024 29 Thereafter 184 Total lease payments 368 Less: Discount (67 ) Total operating lease liabilities $ 301 The table below presents the expected future minimum lease payments to be made under non-cancelable operating leases as of December 31, 2018 . (In millions) Future Minimum Lease Payments 2019 $ 35 2020 39 2021 41 2022 38 2023 32 Thereafter 200 Total $ 385 |
Lease cost | The following table presents the weighted average remaining lease term for operating leases and weighted average discount rate used in calculating operating lease right-of-use assets. December 31, 2019 Weighted average remaining lease term 10.8 years Weighted average discount rate 3.4 % |
Stockholders' Equity and Stat_2
Stockholders' Equity and Statutory Accounting Practices (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity and Statutory Accounting Practices [Abstract] | |
Combined statutory capital and surplus and net income (loss) | Combined statutory capital and surplus and statutory net income (loss) for the Combined Continental Casualty Companies are presented in the table below, determined in accordance with accounting practices prescribed or permitted by insurance and/or other regulatory authorities Statutory Capital and Surplus Statutory Net Income (Loss) December 31 Years ended December 31 (In millions) 2019 (1) 2018 2019 (1) 2018 2017 Combined Continental Casualty Companies $ 10,787 $ 10,411 $ 1,062 $ 1,405 $ 1,029 (1) Information derived from the statutory-basis financial statements to be filed with insurance regulators. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) by Component (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) by Component | The tables below display 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 January 1, 2019 $ 16 $ 61 $ (775 ) $ (180 ) $ (878 ) Other comprehensive income (loss) before reclassifications (13 ) 957 (89 ) 39 894 Amounts reclassified from accumulated other comprehensive income (loss) net of tax (expense) benefit of $3, $(1), $8, $- and $10 (12 ) 8 (31 ) — (35 ) Other comprehensive income (loss) net of tax (expense) benefit of $-, $(255), $15, $- and $(240) (1 ) 949 (58 ) 39 929 Balance as of December 31, 2019 $ 15 $ 1,010 $ (833 ) $ (141 ) $ 51 (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, 2018, as previously reported $ 25 $ 750 $ (645 ) $ (98 ) $ 32 Cumulative effect adjustment from accounting change for adoption of ASU 2018-02 5 137 (130 ) — 12 Cumulative effect adjustment from accounting change for adoption of ASU 2016-01 net of tax (expenses) benefit of $-, $8, $-, $- and $8 — (28 ) — — (28 ) Balance as of January 1, 2018 30 859 (775 ) (98 ) 16 Other comprehensive income (loss) before reclassifications (7 ) (801 ) (32 ) (82 ) (922 ) Amounts reclassified from accumulated other comprehensive income (loss) net of tax (expense) benefit of $(2), $2, $8, $- and $8 7 (3 ) (32 ) — (28 ) Other comprehensive income (loss) net of tax (expense) benefit of $4, $211, $1, $- and $216 (14 ) (798 ) — (82 ) (894 ) Balance as of December 31, 2018 $ 16 $ 61 $ (775 ) $ (180 ) $ (878 ) |
Reclassification out of Accumulated Other Comprehensive Income | Amounts reclassified from Accumulated other comprehensive income (loss) shown above are reported in Net income (loss) as follows: Component of AOCI Consolidated Statements of Operations Line Item Affected by Reclassifications Net unrealized gains (losses) on investments with OTTI losses Net investment gains (losses) Net unrealized gains (losses) on other investments Net investment gains (losses) Pension and postretirement benefits Other operating expenses and Insurance claims and policyholders' benefits |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Significant components of the Company's continuing operations and selected balance sheet items | The Company's results of operations and selected balance sheet items by segment are presented in the following tables. Year ended December 31, 2019 Specialty Commercial International Life & Group Corporate & Other (In millions) Eliminations Total Net written premiums $ 2,848 $ 3,315 $ 971 $ 523 $ 1 $ (2 ) $ 7,656 Operating revenues Net earned premiums $ 2,773 $ 3,162 $ 974 $ 520 $ 1 $ (2 ) $ 7,428 Net investment income 556 654 63 820 25 — 2,118 Non-insurance warranty revenue 1,161 — — — — — 1,161 Other revenues 1 29 — — 6 (5 ) 31 Total operating revenues 4,491 3,845 1,037 1,340 32 (7 ) 10,738 Claims, benefits and expenses Net incurred claims and benefits 1,595 2,130 624 1,416 18 — 5,783 Policyholders’ dividends 5 18 — — — — 23 Amortization of deferred acquisition costs 610 537 236 — — — 1,383 Non-insurance warranty expense 1,082 — — — — — 1,082 Other insurance related expenses 292 505 130 115 (2 ) (2 ) 1,038 Other expenses 48 32 8 8 144 (5 ) 235 Total claims, benefits and expenses 3,632 3,222 998 1,539 160 (7 ) 9,544 Core income (loss) before income tax 859 623 39 (199 ) (128 ) — 1,194 Income tax (expense) benefit on core income (loss) (188 ) (134 ) (9 ) 90 26 — (215 ) Core income (loss) $ 671 $ 489 $ 30 $ (109 ) $ (102 ) $ — 979 Net investment gains (losses) 29 Income tax (expense) benefit on net investment gains (losses) (8 ) Net investment gains (losses), after tax 21 Net income $ 1,000 December 31, 2019 (In millions) Reinsurance receivables $ 575 $ 855 $ 247 $ 385 $ 2,142 $ — $ 4,204 Insurance receivables 971 1,210 284 16 — — 2,481 Deferred acquisition costs 311 257 94 — — — 662 Goodwill 117 — 30 — — — 147 Deferred non-insurance warranty acquisition expense 2,840 — — — — — 2,840 Insurance reserves Claim and claim adjustment expenses 5,238 8,656 1,876 3,716 2,234 — 21,720 Unearned premiums 2,337 1,626 495 125 — — 4,583 Future policy benefits — — — 12,311 — — 12,311 Deferred non-insurance warranty revenue 3,779 — — — — — 3,779 Year ended December 31, 2018 Specialty Commercial International Life & Group Corporate & Other (In millions) Eliminations Total Net written premiums $ 2,744 $ 3,060 $ 1,018 $ 524 $ — $ (1 ) $ 7,345 Operating revenues Net earned premiums $ 2,732 $ 3,050 $ 1,001 $ 530 $ — $ (1 ) $ 7,312 Net investment income 439 500 57 801 20 — 1,817 Non-insurance warranty revenue 1,007 — — — — — 1,007 Other revenues 2 28 1 2 19 (2 ) 50 Total operating revenues 4,180 3,578 1,059 1,333 39 (3 ) 10,186 Claims, benefits and expenses Net incurred claims and benefits 1,526 2,053 699 1,218 51 — 5,547 Policyholders’ dividends 5 20 — — — — 25 Amortization of deferred acquisition costs 599 505 231 — — — 1,335 Non-insurance warranty expense 923 — — — — — 923 Other insurance related expenses 279 505 135 122 (1 ) (1 ) 1,039 Other expenses 46 43 14 7 193 (2 ) 301 Total claims, benefits and expenses 3,378 3,126 1,079 1,347 243 (3 ) 9,170 Core income (loss) before income tax 802 452 (20 ) (14 ) (204 ) — 1,016 Income tax (expense) benefit on core income (loss) (173 ) (95 ) 1 57 39 — (171 ) Core income (loss) $ 629 $ 357 $ (19 ) $ 43 $ (165 ) $ — 845 Net investment gains (losses) (52 ) Income tax (expense) benefit on net investment gains (losses) 14 Net investment gains (losses), after tax (38 ) Net deferred tax asset remeasurement 6 Net income $ 813 December 31, 2018 (In millions) Reinsurance receivables $ 649 $ 795 $ 250 $ 414 $ 2,347 $ — $ 4,455 Insurance receivables 947 1,277 284 9 (152 ) — 2,365 Deferred acquisition costs 308 230 95 — — — 633 Goodwill 117 — 29 — — — 146 Deferred non-insurance warranty acquisition expense 2,513 — — — — — 2,513 Insurance reserves Claim and claim adjustment expenses 5,465 8,743 1,750 3,601 2,425 — 21,984 Unearned premiums 2,132 1,454 475 122 — — 4,183 Future policy benefits — — — 10,597 — — 10,597 Deferred non-insurance warranty revenue 3,402 — — — — — 3,402 Year ended December 31, 2017 Specialty Commercial Life & Group Corporate & Other (In millions) International Eliminations Total Net written premiums $ 2,731 $ 2,922 $ 881 $ 536 $ — $ (1 ) $ 7,069 Operating revenues Net earned premiums $ 2,712 $ 2,881 $ 857 $ 539 $ — $ (1 ) $ 6,988 Net investment income 522 658 52 782 20 — 2,034 Non-insurance warranty revenue 390 — — — — — 390 Other revenues 1 32 — 2 2 — 37 Total operating revenues 3,625 3,571 909 1,323 22 (1 ) 9,449 Claims, benefits and expenses Net incurred claims and benefits 1,533 1,930 575 1,269 (19 ) — 5,288 Policyholders’ dividends 4 18 — — — — 22 Amortization of deferred acquisition costs 590 481 162 — — — 1,233 Non-insurance warranty expense 299 — — — — — 299 Other insurance related expenses 279 530 162 129 (1 ) (1 ) 1,098 Other expenses 43 57 (7 ) 7 192 — 292 Total claims, benefits and expenses 2,748 3,016 892 1,405 172 (1 ) 8,232 Core income (loss) before income tax 877 555 17 (82 ) (150 ) — 1,217 Income tax (expense) benefit on core income (loss) (295 ) (186 ) (9 ) 132 60 — (298 ) Core income (loss) $ 582 $ 369 $ 8 $ 50 $ (90 ) $ — 919 Net investment gains (losses) 93 Income tax (expense) benefit on net investment gains (losses) (30 ) Net investment gains (losses), after tax 63 Net deferred tax asset remeasurement (83 ) Net income $ 899 |
Revenues by line of business | The following table presents operating revenue by line of business for each reportable segment. Years ended December 31 (In millions) 2019 2018 2017 Specialty Management & Professional Liability $ 2,572 $ 2,440 $ 2,533 Surety 596 571 541 Warranty & Alternative Risks (1) 1,323 1,169 551 Specialty revenues 4,491 4,180 3,625 Commercial Middle Market 2,249 2,045 1,965 Small Business 469 472 480 Other Commercial Insurance 1,127 1,061 1,126 Commercial revenues 3,845 3,578 3,571 International Canada 277 255 224 Europe 363 363 326 Hardy 397 441 359 International revenues 1,037 1,059 909 Life & Group revenues 1,340 1,333 1,323 Corporate & Other revenues 32 39 22 Eliminations (7 ) (3 ) (1 ) Total operating revenues 10,738 10,186 9,449 Net investment gains (losses) 29 (52 ) 93 Total revenues $ 10,767 $ 10,134 $ 9,542 (1) As of January 1, 2018, the Company adopted ASU 2014-09 Revenue Recognition (Topic 606): Revenue from Contracts with Customers. See Note A to the Consolidated Financial Statements for additional information. |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
Schedule of quarterly financial information | The following tables present unaudited quarterly financial data. 2019 (In millions, except per share data) First Second Third Fourth Full Year Revenues $ 2,695 $ 2,610 $ 2,685 $ 2,777 $ 10,767 Net income (loss) (1) 342 278 107 273 1,000 Basic earnings (loss) per share (3) 1.26 1.03 0.39 1.00 3.68 Diluted earnings (loss) per share (3) $ 1.25 $ 1.02 $ 0.39 $ 1.00 $ 3.67 2018 (In millions, except per share data) First Second Third Fourth Full Year Revenues $ 2,535 $ 2,574 $ 2,622 $ 2,403 $ 10,134 Net income (loss) (2) 291 270 336 (84 ) 813 Basic earnings (loss) per share (3) 1.07 0.99 1.24 (0.31 ) 2.99 Diluted earnings (loss) per share (3) $ 1.07 $ 0.99 $ 1.23 $ (0.31 ) $ 2.98 (1) Net income (loss) in the third quarter of 2019 included a $170 million charge related to recognition of an active life reserve premium deficiency as a result of the third quarter 2019 GPV. (2) Net income (loss) in the fourth quarter of 2018 included a loss on limited partnership and common stock investments of $109 million and catastrophe losses, net of reinsurance, of $107 million related to Hurricane Michael and the California wildfires. (3) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | Jan. 01, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Other assets | $ 1,473 | $ 1,208 | $ 1,445 | |||
Anticipated amounts due from insureds related to losses under deductible policies | $ 1,200 | $ 1,200 | ||||
Structured settlement annuities, interest rate, low end | 5.50% | 5.50% | ||||
Structured settlement annuities, interest rate, high end | 7.60% | 8.00% | ||||
Discounted reserves for unfunded structured settlements | $ 497 | $ 512 | ||||
Discounted reserves for unfunded structure settlements, discount amount | 724 | 760 | ||||
Amount of interest recognized on the discounted reserves of unfunded structured settlements | $ 36 | $ 40 | $ 41 | |||
Interest rates at which workers' compensation lifetime claim reserves are discounted at | 3.50% | 3.50% | ||||
Workers' compensation liability | $ 293 | $ 343 | ||||
Discounted reserves for workers’ compensation lifetime claim reserves, discount amount | 135 | 168 | ||||
Amount of interest accretion recognized on the discounted reserves of workers’ compensation lifetime claim reserves | $ 21 | $ 16 | $ 19 | |||
Long term care claim reserves weighted average discounted interest rate | 5.90% | 6.00% | ||||
Discounted reserves for long term care claim reserves | $ 2,700 | $ 2,600 | ||||
Premium deficiency | 462 | $ 460 | ||||
Premium deficiency and future policy benefit | $ 216 | $ 216 | ||||
Minimum interest rate used to calculate reserves for long term care products | 5.70% | 6.90% | ||||
Liability balance for guaranty fund | $ 84 | $ 108 | ||||
Percentage of billed receivables compared to total reinsurance receivable | 5.00% | |||||
Policyholder dividends, rate on policy earnings | 1.00% | 1.00% | 1.00% | |||
Increase (decrease) in shadow adjustment, net of tax | $ 1,120 | $ (333) | ||||
Reduction of net unrealized gains on investments included in AOCI due to shadow adjustments | 2,198 | 1,078 | ||||
Foreign currency transaction gain (loss), before tax | $ 1 | $ 1 | $ 27 | |||
Weighted average number diluted shares outstanding adjustment (in shares) | 961 | 943 | 988 | |||
Antidilutive securities excluded from computation of earnings per share, amount | 1 | 6 | 1 | |||
Interest paid, net | $ 136 | $ 145 | $ 155 | |||
Income taxes paid | $ 255 | $ 308 | 152 | |||
Furniture and Fixtures | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Property, plant and equipment, useful life | 7 years | |||||
Office Equipment | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Property, plant and equipment, useful life | 5 years | |||||
Computer Software, Intangible Asset | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Property, plant and equipment, useful life | 10 years | |||||
Minimum | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Warranty coverage term | 1 month | |||||
Requisite service period for stock- based compensation expense | 3 years | |||||
Minimum | Computer Software, Intangible Asset | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Property, plant and equipment, useful life | 3 years | |||||
Maximum | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Warranty coverage term | 10 years | |||||
Maximum | Computer Software, Intangible Asset | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Property, plant and equipment, useful life | 5 years | |||||
ASU 2016-02 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Other assets | $ 75 | $ 237 | ||||
CNAF Consolidated | Loews | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Noncontrolling interest, ownership percentage by parent | 89.00% | |||||
Retained Earnings | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect adjustments from changes in accounting guidance, net of tax | $ (50) | |||||
Retained Earnings | ASU 2016-01 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect adjustments from changes in accounting guidance, net of tax | $ 28 | |||||
Preferred stock | ASU 2016-01 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Other comprehensive income (loss), securities, available-for-sale, unrealized holding gain (loss) arising during period, after tax | 32 | |||||
Common Stock | ASU 2016-01 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Other comprehensive income (loss), securities, available-for-sale, unrealized holding gain (loss) arising during period, after tax | $ 1 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Adoption of Updated Guidance) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Property and equipment at cost (less accumulated depreciation) | $ 282 | $ 326 | $ 324 |
Other assets | 1,473 | 1,445 | 1,208 |
Other liabilities | 3,325 | 3,328 | $ 3,089 |
Adjustments Due to Adoption of Topic 842 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Property and equipment at cost (less accumulated depreciation) | 2 | ||
Other assets | $ 75 | 237 | |
Other liabilities | $ 239 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Cumulative Effect to the Consolidated Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Deferred non-insurance warranty acquisition expense | $ 2,840 | $ 2,513 | $ 2,094 | |
Deferred non-insurance warranty revenue | 3,779 | 3,402 | 2,941 | |
Deferred income taxes | 199 | 392 | 158 | |
Retained earnings | $ 9,348 | 9,277 | 9,348 | |
Balance as of December 31, 2017 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Deferred non-insurance warranty acquisition expense | 2,116 | $ 212 | ||
Deferred non-insurance warranty revenue | 2,997 | 972 | ||
Deferred income taxes | 390 | 137 | ||
Retained earnings | 9,283 | $ 9,414 | ||
Adjustments Due to Adoption of Topic 606 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Deferred non-insurance warranty acquisition expense | 397 | 1,882 | ||
Deferred non-insurance warranty revenue | 405 | 1,969 | ||
Deferred income taxes | 2 | 21 | ||
Retained earnings | $ (6) | $ (66) |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Impact of adoption on the Consolidated Statements of Operations and Balance Sheet) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||||
Non-insurance warranty revenue | $ 1,007 | |||||||||||
Revenues | $ 2,777 | $ 2,685 | $ 2,610 | $ 2,695 | $ 2,403 | $ 2,622 | $ 2,574 | $ 2,535 | $ 10,767 | 10,134 | $ 9,542 | |
Non-insurance warranty expense | 1,082 | 923 | 299 | |||||||||
Total claims, benefits and expenses | 9,544 | 9,170 | 8,232 | |||||||||
Income before income tax | 1,223 | 964 | 1,310 | |||||||||
Income tax expense | (223) | (151) | (411) | |||||||||
Net income | 273 | $ 107 | $ 278 | $ 342 | (84) | $ 336 | $ 270 | $ 291 | 1,000 | 813 | 899 | |
Deferred non-insurance warranty acquisition expense | 2,840 | 2,513 | 2,840 | 2,513 | $ 2,094 | |||||||
Deferred non-insurance warranty revenue | 3,779 | 3,402 | 3,779 | 3,402 | 2,941 | |||||||
Deferred income taxes | 199 | 392 | 199 | 392 | 158 | |||||||
Retained earnings | $ 9,348 | 9,277 | $ 9,348 | 9,277 | 9,348 | |||||||
Prior to Adoption | ||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||||
Non-insurance warranty revenue | 420 | |||||||||||
Revenues | 9,547 | |||||||||||
Non-insurance warranty expense | 328 | |||||||||||
Total claims, benefits and expenses | 8,575 | |||||||||||
Income before income tax | 972 | |||||||||||
Income tax expense | (153) | |||||||||||
Net income | 819 | |||||||||||
Deferred non-insurance warranty acquisition expense | 2,116 | 2,116 | 212 | |||||||||
Deferred non-insurance warranty revenue | 2,997 | 2,997 | 972 | |||||||||
Deferred income taxes | 390 | 390 | 137 | |||||||||
Retained earnings | 9,283 | 9,283 | $ 9,414 | |||||||||
Effect of Adoption | ||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||||
Non-insurance warranty revenue | 587 | |||||||||||
Revenues | 587 | |||||||||||
Non-insurance warranty expense | 595 | |||||||||||
Total claims, benefits and expenses | 595 | |||||||||||
Income before income tax | (8) | |||||||||||
Income tax expense | 2 | |||||||||||
Net income | (6) | |||||||||||
Deferred non-insurance warranty acquisition expense | 397 | 397 | 1,882 | |||||||||
Deferred non-insurance warranty revenue | 405 | 405 | 1,969 | |||||||||
Deferred income taxes | 2 | 2 | 21 | |||||||||
Retained earnings | $ (6) | $ (6) | $ (66) |
Investments (Net investment inc
Investments (Net investment income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net Investment Income [Line Items] | |||
Gross investment income | $ 2,181 | $ 1,878 | $ 2,093 |
Investment expense | (63) | (61) | (59) |
Net investment income | 2,118 | 1,817 | 2,034 |
Fixed maturity securities | |||
Net Investment Income [Line Items] | |||
Gross investment income | 1,817 | 1,795 | 1,812 |
Equity securities | |||
Net Investment Income [Line Items] | |||
Gross investment income | 85 | 18 | 12 |
Limited partnership investments | |||
Net Investment Income [Line Items] | |||
Gross investment income | 180 | (22) | 207 |
Mortgage loans | |||
Net Investment Income [Line Items] | |||
Gross investment income | 51 | 50 | 34 |
Short term investments | |||
Net Investment Income [Line Items] | |||
Gross investment income | 34 | 26 | 15 |
Trading portfolio | |||
Net Investment Income [Line Items] | |||
Gross investment income | 9 | 7 | 12 |
Other | |||
Net Investment Income [Line Items] | |||
Gross investment income | $ 5 | $ 4 | $ 1 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Gain (Loss) on Securities [Line Items] | |||
Non-income producing fixed maturity securities | $ 1,000,000 | $ 0 | |
Investments that exceed ten percent of stockholders' equity | 0 | 0 | |
Limited partnership investments | 1,752,000,000 | 1,982,000,000 | |
Undistributed earnings of limited partnership investments | $ 229,000,000 | $ 153,000,000 | |
Percentage of limited partnerships reported on a current basis | 60.00% | ||
Percentage of limited partnerships reported on a one month lag | 10.00% | ||
Percentage of limited partnerships employing hedge fund strategies focused on fixed income and equity investments | 61.00% | 65.00% | |
Limited partnerships invested in private debt and equity | 33.00% | 30.00% | |
Percentage of equity related limited partnership hedge fund strategies | 55.00% | ||
Percentage of multistrategy approach limited partnership hedge fund strategies | 18.00% | ||
Percentage of distressed investments limited partnership hedge fund strategies | 23.00% | ||
Percentage of fixed income limited partnership hedge fund strategies | 4.00% | ||
Carrying value of ten largest limited partnerships | $ 893,000,000 | $ 876,000,000 | |
Carrying value of limited partnerships as percentage of aggregate partnership equity | 2.00% | 2.00% | |
Income as percentage of change in partnership equity for all limited partnerships | 2.00% | 3.00% | 3.00% |
Obligation to return cash | $ 0 | $ 0 | |
Notional value | 182,000,000 | 172,000,000 | |
Derivative liability, fair value, gross liability | (7,000,000) | 4,000,000 | |
Commitments to purchase or fund privately placed debt securities | 945,000,000 | ||
Commitments to sell various privately placed debt securities | 85,000,000 | ||
Carrying value of securities deposited under requirements of regulatory authorities | 2,700,000,000 | 2,500,000,000 | |
Cash and securities deposited as collateral for letters of credit | 1,100,000,000 | 1,000,000,000 | |
Senior notes of CNAF, 6.950%, face amount of $150, due November, 2019 | Senior Notes | |||
Gain (Loss) on Securities [Line Items] | |||
Realized investment gains (losses) | (21,000,000) | $ (42,000,000) | |
Face amount | 500,000,000 | $ 350,000,000 | |
Common Stock | |||
Gain (Loss) on Securities [Line Items] | |||
Equity securities, FV-NI, gain (loss) | 38,000,000 | 24,000,000 | |
Preferred stock | |||
Gain (Loss) on Securities [Line Items] | |||
Equity securities, FV-NI, gain (loss) | $ 66,000,000 | $ (73,000,000) |
Investments (Net realized inves
Investments (Net realized investment gains (losses)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fixed maturity securities: | |||
Gross gains | $ 125 | $ 168 | $ 186 |
Gross losses | (131) | (164) | (64) |
Net investment gains (losses) on fixed maturity securities | (6) | 4 | 122 |
Equity securities | 66 | (74) | 0 |
Derivatives | (11) | 9 | (4) |
Short term investments and other | (20) | 9 | (25) |
Net investment gains (losses) | $ 29 | $ (52) | $ 93 |
Investments (Net change in unre
Investments (Net change in unrealized gains (losses) on investments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Securities, Available-for-sale [Line Items] | |||
Total net change in unrealized gains on investments | $ 2,620 | $ (1,811) | $ 758 |
Fixed maturity securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total net change in unrealized gains on investments | 2,620 | (1,811) | 728 |
Equity securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total net change in unrealized gains on investments | 0 | 0 | 32 |
Other | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total net change in unrealized gains on investments | $ 0 | $ 0 | $ (2) |
Investments (Components of othe
Investments (Components of other-than-temporary impairment losses recognized in earnings) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Securities, Available-for-sale [Line Items] | |||
Total fixed maturity securities available-for-sale | $ 44 | $ 21 | $ 13 |
OTTI losses recognized in earnings | 44 | 21 | 14 |
Corporate and other bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total fixed maturity securities available-for-sale | 33 | 12 | 12 |
Asset-backed | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total fixed maturity securities available-for-sale | 11 | 9 | 1 |
Equity securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
OTTI losses recognized in earnings | $ 0 | $ 0 | $ 1 |
Investments (Summary of fixed m
Investments (Summary of fixed maturity and equity securities) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | $ 38,106 | $ 38,081 |
Gross Unrealized Gains | 4,126 | 1,982 |
Gross Unrealized Losses | 45 | 521 |
Estimated Fair Value | 42,187 | 39,542 |
Total fixed maturity securities trading | ||
Debt securities, amortized cost | 38,126 | 38,085 |
Debt securities | 42,207 | 39,546 |
Corporate and other bonds | ||
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | 19,789 | 18,764 |
Gross Unrealized Gains | 2,292 | 791 |
Gross Unrealized Losses | 32 | 395 |
Estimated Fair Value | 22,049 | 19,160 |
Total fixed maturity securities trading | ||
Debt securities | 22,728 | 19,814 |
Unrealized OTTI Losses (Gains) | 0 | 0 |
States, municipalities and political subdivisions | ||
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | 9,093 | 9,681 |
Gross Unrealized Gains | 1,559 | 1,076 |
Gross Unrealized Losses | 0 | 9 |
Estimated Fair Value | 10,652 | 10,748 |
Total fixed maturity securities trading | ||
Debt securities | 10,652 | 10,748 |
Unrealized OTTI Losses (Gains) | 0 | 0 |
Residential mortgage-backed | ||
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | 4,387 | 4,815 |
Gross Unrealized Gains | 133 | 68 |
Gross Unrealized Losses | 1 | 57 |
Estimated Fair Value | 4,519 | 4,826 |
Total fixed maturity securities trading | ||
Unrealized OTTI Losses (Gains) | (17) | (20) |
Commercial mortgage-backed | ||
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | 2,265 | 2,200 |
Gross Unrealized Gains | 86 | 28 |
Gross Unrealized Losses | 5 | 32 |
Estimated Fair Value | 2,346 | 2,196 |
Total fixed maturity securities trading | ||
Unrealized OTTI Losses (Gains) | 1 | 0 |
Other asset-backed | ||
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | 1,925 | 1,975 |
Gross Unrealized Gains | 41 | 11 |
Gross Unrealized Losses | 4 | 24 |
Estimated Fair Value | 1,962 | 1,962 |
Total fixed maturity securities trading | ||
Unrealized OTTI Losses (Gains) | (3) | 0 |
Asset-backed | ||
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | 8,577 | 8,990 |
Gross Unrealized Gains | 260 | 107 |
Gross Unrealized Losses | 10 | 113 |
Estimated Fair Value | 8,827 | 8,984 |
Total fixed maturity securities trading | ||
Debt securities | 8,827 | 8,984 |
Unrealized OTTI Losses (Gains) | (19) | (20) |
U.S. Treasury and obligations of government-sponsored enterprises | ||
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | 146 | 156 |
Gross Unrealized Gains | 1 | 3 |
Gross Unrealized Losses | 2 | 0 |
Estimated Fair Value | 145 | 159 |
Total fixed maturity securities trading | ||
Unrealized OTTI Losses (Gains) | 0 | 0 |
Foreign government | ||
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | 491 | 480 |
Gross Unrealized Gains | 14 | 5 |
Gross Unrealized Losses | 1 | 4 |
Estimated Fair Value | 504 | 481 |
Total fixed maturity securities trading | ||
Unrealized OTTI Losses (Gains) | 0 | 0 |
Redeemable preferred stock | ||
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | 10 | 10 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 10 | 10 |
Total fixed maturity securities trading | ||
Unrealized OTTI Losses (Gains) | 0 | 0 |
Fixed maturity securities | ||
Fixed maturity securities available-for-sale: | ||
Cost or Amortized Cost | 38,106 | 38,081 |
Gross Unrealized Gains | 4,126 | 1,982 |
Gross Unrealized Losses | 45 | 521 |
Estimated Fair Value | 42,187 | 39,542 |
Total fixed maturity securities trading | ||
Unrealized OTTI Losses (Gains) | (19) | (20) |
Total fixed maturity securities trading | ||
Total fixed maturity securities trading | ||
Cost or amortized cost, trading securities | 20 | 4 |
Estimated fair value, trading securities | $ 20 | $ 4 |
Investments (Securities in a gr
Investments (Securities in a gross unrealized loss position) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value, Less than 12 months | $ 2,148 | $ 12,689 |
Gross Unrealized Losses, Less than 12 Months | 31 | 404 |
Estimated Fair Value, 12 Months or Longer | 272 | 2,614 |
Gross Unrealized Losses, 12 Months or Longer | 14 | 117 |
Estimated Fair Value, Total | 2,420 | 15,303 |
Gross Unrealized Losses, Total | 45 | 521 |
Corporate and other bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value, Less than 12 months | 914 | 8,543 |
Gross Unrealized Losses, Less than 12 Months | 21 | 340 |
Estimated Fair Value, 12 Months or Longer | 186 | 825 |
Gross Unrealized Losses, 12 Months or Longer | 11 | 55 |
Estimated Fair Value, Total | 1,100 | 9,368 |
Gross Unrealized Losses, Total | 32 | 395 |
States, municipalities and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value, Less than 12 months | 34 | 517 |
Gross Unrealized Losses, Less than 12 Months | 0 | 8 |
Estimated Fair Value, 12 Months or Longer | 0 | 5 |
Gross Unrealized Losses, 12 Months or Longer | 0 | 1 |
Estimated Fair Value, Total | 34 | 522 |
Gross Unrealized Losses, Total | 9 | |
Residential mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value, Less than 12 months | 249 | 1,932 |
Gross Unrealized Losses, Less than 12 Months | 1 | 23 |
Estimated Fair Value, 12 Months or Longer | 30 | 1,119 |
Gross Unrealized Losses, 12 Months or Longer | 0 | 34 |
Estimated Fair Value, Total | 279 | 3,051 |
Gross Unrealized Losses, Total | 1 | 57 |
Commercial mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value, Less than 12 months | 381 | 728 |
Gross Unrealized Losses, Less than 12 Months | 3 | 10 |
Estimated Fair Value, 12 Months or Longer | 20 | 397 |
Gross Unrealized Losses, 12 Months or Longer | 2 | 22 |
Estimated Fair Value, Total | 401 | 1,125 |
Gross Unrealized Losses, Total | 5 | 32 |
Other asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value, Less than 12 months | 449 | 834 |
Gross Unrealized Losses, Less than 12 Months | 3 | 21 |
Estimated Fair Value, 12 Months or Longer | 33 | 125 |
Gross Unrealized Losses, 12 Months or Longer | 1 | 3 |
Estimated Fair Value, Total | 482 | 959 |
Gross Unrealized Losses, Total | 4 | 24 |
Asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value, Less than 12 months | 1,079 | 3,494 |
Gross Unrealized Losses, Less than 12 Months | 7 | 54 |
Estimated Fair Value, 12 Months or Longer | 83 | 1,641 |
Gross Unrealized Losses, 12 Months or Longer | 3 | 59 |
Estimated Fair Value, Total | 1,162 | 5,135 |
Gross Unrealized Losses, Total | 10 | 113 |
U.S. Treasury and obligations of government-sponsored enterprises | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value, Less than 12 months | 62 | 21 |
Gross Unrealized Losses, Less than 12 Months | 2 | 0 |
Estimated Fair Value, 12 Months or Longer | 2 | 19 |
Gross Unrealized Losses, 12 Months or Longer | 0 | 0 |
Estimated Fair Value, Total | 64 | 40 |
Gross Unrealized Losses, Total | 2 | 0 |
Foreign government | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value, Less than 12 months | 59 | 114 |
Gross Unrealized Losses, Less than 12 Months | 1 | 2 |
Estimated Fair Value, 12 Months or Longer | 1 | 124 |
Gross Unrealized Losses, 12 Months or Longer | 0 | 2 |
Estimated Fair Value, Total | 60 | 238 |
Gross Unrealized Losses, Total | $ 1 | $ 4 |
Investments (Activity related t
Investments (Activity related to the pretax fixed maturity credit loss component reflected within retained earnings for securities still held for which a portion of an OTTI loss was recognized in OCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | |||
Balance beginning of period | $ 18 | $ 27 | $ 36 |
Reductions for securities sold during the period | (8) | (9) | (9) |
Balance end of period | $ 10 | $ 18 | $ 27 |
Investments (Contractual maturi
Investments (Contractual maturity) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Investments [Abstract] | ||
Due in one year or less, cost or amortized cost | $ 1,334 | $ 1,350 |
Due after one year through five years, cost or amortized cost | 9,746 | 7,979 |
Due after five years through ten years, cost or amortized cost | 14,892 | 16,859 |
Due after ten years, cost or amortized cost | 12,134 | 11,893 |
Cost or Amortized Cost | 38,106 | 38,081 |
Due in one year or less, estimated fair value | 1,356 | 1,359 |
Due after one year through five years, estimated fair value | 10,186 | 8,139 |
Due after five years through ten years, estimated fair value | 15,931 | 16,870 |
Due after ten years, estimated fair value | 14,714 | 13,174 |
Total Estimated Fair Value | $ 42,187 | $ 39,542 |
Fair Value (Assets and liabilit
Fair Value (Assets and liabilities measured at fair value on a recurring basis) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Fixed maturity securities: | |||
Fixed maturity securities at fair value (amortized cost of $38,126 and $38,085) | $ 42,207 | $ 39,546 | |
Equity securities: | |||
Equity securities | 865 | 780 | |
Short term and other | 1,741 | 1,165 | |
Total assets | 44,813 | 41,491 | |
Other liabilities | 7 | (4) | |
Total liabilities | 7 | (4) | |
Corporate and other bonds | |||
Fixed maturity securities: | |||
Fixed maturity securities at fair value (amortized cost of $38,126 and $38,085) | 22,728 | 19,814 | |
States, municipalities and political subdivisions | |||
Fixed maturity securities: | |||
Fixed maturity securities at fair value (amortized cost of $38,126 and $38,085) | 10,652 | 10,748 | |
Asset-backed | |||
Fixed maturity securities: | |||
Fixed maturity securities at fair value (amortized cost of $38,126 and $38,085) | 8,827 | 8,984 | |
Common Stock | |||
Equity securities: | |||
Equity securities | 142 | 148 | |
Preferred stock | |||
Equity securities: | |||
Equity securities | 723 | 632 | |
Level 1 | |||
Fixed maturity securities: | |||
Fixed maturity securities at fair value (amortized cost of $38,126 and $38,085) | 175 | 196 | |
Equity securities: | |||
Equity securities | 189 | 192 | |
Short term and other | 397 | 216 | |
Total assets | 761 | 604 | |
Other liabilities | 0 | 0 | |
Total liabilities | 0 | 0 | |
Level 1 | Corporate and other bonds | |||
Fixed maturity securities: | |||
Fixed maturity securities at fair value (amortized cost of $38,126 and $38,085) | 175 | 196 | |
Level 1 | States, municipalities and political subdivisions | |||
Fixed maturity securities: | |||
Fixed maturity securities at fair value (amortized cost of $38,126 and $38,085) | 0 | 0 | |
Level 1 | Asset-backed | |||
Fixed maturity securities: | |||
Fixed maturity securities at fair value (amortized cost of $38,126 and $38,085) | 0 | 0 | |
Level 1 | Common Stock | |||
Equity securities: | |||
Equity securities | 135 | 144 | |
Level 1 | Preferred stock | |||
Equity securities: | |||
Equity securities | 54 | 48 | |
Level 2 | |||
Fixed maturity securities: | |||
Fixed maturity securities at fair value (amortized cost of $38,126 and $38,085) | 41,399 | 38,931 | |
Equity securities: | |||
Equity securities | 658 | 570 | |
Short term and other | 1,344 | 949 | |
Total assets | 43,401 | 40,450 | |
Other liabilities | 7 | (4) | |
Total liabilities | 7 | (4) | |
Level 2 | Corporate and other bonds | |||
Fixed maturity securities: | |||
Fixed maturity securities at fair value (amortized cost of $38,126 and $38,085) | 22,085 | 19,396 | |
Level 2 | States, municipalities and political subdivisions | |||
Fixed maturity securities: | |||
Fixed maturity securities at fair value (amortized cost of $38,126 and $38,085) | 10,652 | 10,748 | |
Level 2 | Asset-backed | |||
Fixed maturity securities: | |||
Fixed maturity securities at fair value (amortized cost of $38,126 and $38,085) | 8,662 | 8,787 | |
Level 2 | Common Stock | |||
Equity securities: | |||
Equity securities | 0 | 0 | |
Level 2 | Preferred stock | |||
Equity securities: | |||
Equity securities | 658 | 570 | |
Level 3 | |||
Fixed maturity securities: | |||
Fixed maturity securities at fair value (amortized cost of $38,126 and $38,085) | 633 | 419 | |
Equity securities: | |||
Equity securities | 18 | 18 | |
Short term and other | 0 | 0 | |
Total assets | 651 | 437 | |
Other liabilities | 0 | 0 | |
Total liabilities | 0 | 0 | |
Level 3 | Corporate and other bonds | |||
Fixed maturity securities: | |||
Fixed maturity securities at fair value (amortized cost of $38,126 and $38,085) | 468 | 222 | |
Level 3 | States, municipalities and political subdivisions | |||
Fixed maturity securities: | |||
Fixed maturity securities at fair value (amortized cost of $38,126 and $38,085) | 0 | 0 | |
Level 3 | Asset-backed | |||
Fixed maturity securities: | |||
Fixed maturity securities at fair value (amortized cost of $38,126 and $38,085) | 165 | 197 | |
Level 3 | Common Stock | |||
Equity securities: | |||
Equity securities | 7 | 4 | |
Level 3 | Preferred stock | |||
Equity securities: | |||
Equity securities | $ 11 | $ 14 |
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 | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, Beginning, Assets | $ 437 | $ 454 |
Reported in Other comprehensive income (loss) | 41 | (12) |
Total realized and unrealized investment gains (losses) | 39 | (10) |
Purchases | 306 | 279 |
Sales | 0 | (77) |
Settlements | (27) | (74) |
Transfers into Level 3 | 45 | 77 |
Transfers out of Level 3 | (149) | (212) |
Balance, Ending, Assets | 651 | 437 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2019 recognized in Net income (loss) in the period | (2) | (4) |
Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2019 recognized in Other comprehensive income (loss) in the period | 35 | (9) |
Corporate and other bonds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, Beginning, Assets | 222 | 98 |
Reported in Other comprehensive income (loss) | 33 | (4) |
Total realized and unrealized investment gains (losses) | 33 | (5) |
Purchases | 256 | 117 |
Sales | 0 | (5) |
Settlements | (11) | (9) |
Transfers into Level 3 | 0 | 35 |
Transfers out of Level 3 | (32) | (9) |
Balance, Ending, Assets | 468 | 222 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2019 recognized in Net income (loss) in the period | 0 | 0 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2019 recognized in Other comprehensive income (loss) in the period | 28 | (5) |
States, municipalities and political subdivisions | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, Beginning, Assets | 0 | 1 |
Reported in Other comprehensive income (loss) | 0 | 0 |
Total realized and unrealized investment gains (losses) | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements | 0 | (1) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Balance, Ending, Assets | 0 | 0 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2019 recognized in Net income (loss) in the period | 0 | 0 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2019 recognized in Other comprehensive income (loss) in the period | 0 | 0 |
Asset-backed | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, Beginning, Assets | 197 | 335 |
Reported in Other comprehensive income (loss) | 8 | (8) |
Total realized and unrealized investment gains (losses) | 8 | (3) |
Purchases | 48 | 162 |
Sales | 0 | (72) |
Settlements | (16) | (64) |
Transfers into Level 3 | 45 | 42 |
Transfers out of Level 3 | (117) | (203) |
Balance, Ending, Assets | 165 | 197 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2019 recognized in Net income (loss) in the period | 0 | (2) |
Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2019 recognized in Other comprehensive income (loss) in the period | 7 | (4) |
Equity securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, Beginning, Assets | 18 | 20 |
Reported in Other comprehensive income (loss) | 0 | 0 |
Total realized and unrealized investment gains (losses) | (2) | (2) |
Purchases | 2 | 0 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Balance, Ending, Assets | 18 | 18 |
Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2019 recognized in Net income (loss) in the period | (2) | (2) |
Unrealized gains (losses) on Level 3 assets and liabilities held as of December 31, 2019 recognized in Other comprehensive income (loss) in the period | 0 | 0 |
Reported in Net investment gains (losses) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Reported in Net investment gains (losses) | (2) | 2 |
Reported in Net investment gains (losses) | Corporate and other bonds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Reported in Net investment gains (losses) | 0 | (1) |
Reported in Net investment gains (losses) | States, municipalities and political subdivisions | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Reported in Net investment gains (losses) | 0 | 0 |
Reported in Net investment gains (losses) | Asset-backed | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Reported in Net investment gains (losses) | 0 | 5 |
Reported in Net investment gains (losses) | Equity securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Reported in Net investment gains (losses) | (2) | (2) |
Reported in Net investment income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Reported in Net investment income | 0 | 0 |
Reported in Net investment income | Corporate and other bonds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Reported in Net investment income | 0 | 0 |
Reported in Net investment income | States, municipalities and political subdivisions | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Reported in Net investment income | 0 | 0 |
Reported in Net investment income | Asset-backed | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Reported in Net investment income | 0 | 0 |
Reported in Net investment income | Equity securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Reported in Net investment income | $ 0 | $ 0 |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
Other invested assets overseas deposit | $ 60 | $ 48 |
Fair Value (Quantitative inform
Fair Value (Quantitative information about significant unobservable inputs in the fair value measurement of level 3 assets) (Details) $ in Millions | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Estimated fair value | $ 44,813 | $ 41,491 | |
Fixed maturity securities | Income Approach Valuation Technique | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Estimated fair value | $ 525 | $ 228 | |
Measurement Input, Credit Spread | Income Approach Valuation Technique | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Debt securities, available-for-sale, measurement Input | 0.01 | 0.01 | |
Measurement Input, Credit Spread | Income Approach Valuation Technique | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Debt securities, available-for-sale, measurement Input | 0.06 | 0.12 | |
Measurement Input, Credit Spread | Income Approach Valuation Technique | Weighted Average | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Debt securities, available-for-sale, measurement Input | 0.02 | 0.03 |
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 | Dec. 31, 2019 | Dec. 31, 2018 |
Financial Assets [Abstract] | ||
Mortgage loans | $ 994 | $ 839 |
Financial Liabilities [Abstract] | ||
Long term debt | 2,679 | 2,680 |
Carrying Amount | ||
Financial Assets [Abstract] | ||
Mortgage loans | 994 | 839 |
Note receivable | 21 | 35 |
Financial Liabilities [Abstract] | ||
Long term debt | 2,679 | 2,680 |
Estimated Fair Value | ||
Financial Assets [Abstract] | ||
Mortgage loans | 1,025 | 827 |
Note receivable | 21 | 35 |
Financial Liabilities [Abstract] | ||
Long term debt | 2,906 | 2,731 |
Level 1 | Estimated Fair Value | ||
Financial Assets [Abstract] | ||
Mortgage loans | 0 | 0 |
Note receivable | 0 | 0 |
Financial Liabilities [Abstract] | ||
Long term debt | 0 | 0 |
Level 2 | Estimated Fair Value | ||
Financial Assets [Abstract] | ||
Mortgage loans | 0 | 0 |
Note receivable | 0 | 0 |
Financial Liabilities [Abstract] | ||
Long term debt | 2,906 | 2,731 |
Level 3 | Estimated Fair Value | ||
Financial Assets [Abstract] | ||
Mortgage loans | 1,025 | 827 |
Note receivable | 21 | 35 |
Financial Liabilities [Abstract] | ||
Long term debt | $ 0 | $ 0 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefits | $ 0 | $ 0 | |
Interest income (expense) | 0 | 0 | $ 0 |
Income tax penalties expense | 0 | 0 | 0 |
Accrued interest and penalties | 0 | 0 | |
Effective income tax rate reconciliation, Tax Cuts and Jobs Act, amount | 6,000,000 | (83,000,000) | |
Deferred tax liability on undistributed income related to a foreign subsidiary | 0 | ||
Foreign tax expense (benefit) on income from continuing operations | (19,000,000) | (5,000,000) | 1,000,000 |
Income (loss) from continuing foreign operations | 43,000,000 | 22,000,000 | 39,000,000 |
Operating loss carryforwards | 0 | ||
Tax credit carryforward, amount | 2,000,000 | ||
Valuation allowance | 0 | 0 | |
Federal Income Taxes | |||
Income Tax Contingency [Line Items] | |||
Related party transaction, amounts of transaction | 239,000,000 | $ 275,000,000 | $ 127,000,000 |
Foreign Tax Authority | |||
Income Tax Contingency [Line Items] | |||
Operating loss carryforwards | 42,000,000 | ||
Tax credit carryforward, amount | 2,000,000 | ||
Operating loss carryforwards, subject to expiration | $ 2,000,000 |
Income Taxes (Reconciliation be
Income Taxes (Reconciliation between the Company's federal income tax (expense) benefit at statutory rates and the recorded income tax (expense) benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense at statutory rates | $ (257) | $ (203) | $ (459) |
Tax benefit from tax exempt income | 53 | 63 | 131 |
Foreign taxes and credits | (1) | (1) | 3 |
State income taxes | (14) | (13) | (7) |
Net deferred tax asset remeasurement | 0 | 6 | (83) |
Other tax expense | (4) | (3) | 4 |
Income tax expense | $ (223) | $ (151) | $ (411) |
Income Taxes (Current and defer
Income Taxes (Current and deferred components of the Company's income tax (expense) benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Current tax expense | $ (269) | $ (171) | $ (243) |
Deferred tax benefit (expense) | 46 | 20 | (168) |
Income tax expense | $ (223) | $ (151) | $ (411) |
Income Taxes (Significant compo
Income Taxes (Significant components of the Company's deferred tax assets and liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 |
Deferred Tax Assets: | |||
Property and casualty claim and claim adjustment expense reserves | $ 129 | $ 108 | |
Unearned premium reserves | 153 | 108 | |
Receivables | 11 | 15 | |
Employee benefits | 127 | 143 | |
Deferred retroactive reinsurance benefit | 82 | 79 | |
Other assets | 132 | 131 | |
Gross deferred tax assets | 634 | 584 | |
Deferred Tax Liabilities: | |||
Investment valuation differences | 40 | 44 | |
Deferred acquisition costs | 83 | 78 | |
Net unrealized gains | 264 | 14 | |
Software and hardware | 34 | 44 | |
Other liabilities | 14 | 12 | |
Gross deferred tax liabilities | 435 | 192 | |
Net deferred tax asset | $ 199 | $ 392 | $ 158 |
Claim and Claim Adjustment Ex_3
Claim and Claim Adjustment Expense Reserves (Narrative) (Details) - Asbestos and Environmental Reserves - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2010 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Net A&EP claim and allocated claim adjustment expense reserves ceded to NICO | $ 1,600 | |||
Aggregate limit under A&EP 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 transferred to NICO under A&EP Loss Portfolio Transfer | 215 | |||
Total consideration paid to NICO under AEP Loss Portfolio Transfer | $ 2,200 | |||
Net A&EP adverse development before consideration of LPT | $ 150 | $ 178 | $ 60 | |
Provision for uncollectible third-party reinsurance, released | 25 | 16 | ||
Cumulative amounts ceded under AEP Loss Portfolio Transfer | 3,200 | 3,100 | ||
Deferred reinsurance benefit yet to be recognized | 392 | 374 | ||
Fair value of collateral trust account established by NICO under A&EP Loss Portfolio Transfer | $ 3,700 | $ 2,700 |
Claim and Claim Adjustment Ex_4
Claim and Claim Adjustment Expense Reserves (Reconciliation of Liability for Unpaid Claim and Claim Adjustment Expense) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Total net liability for unpaid claim and claim adjustment expenses | $ 17,885 | $ 17,965 | $ 18,070 | $ 18,249 |
Reinsurance receivables | 3,835 | |||
Total gross liability for unpaid claim and claim adjustment expenses | 21,720 | 21,984 | ||
Specialty | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Total net liability for unpaid claim and claim adjustment expenses | 4,676 | 4,831 | ||
Reinsurance receivables | 562 | |||
Commercial | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Total net liability for unpaid claim and claim adjustment expenses | 7,849 | 7,998 | ||
Reinsurance receivables | 807 | |||
International | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Total net liability for unpaid claim and claim adjustment expenses | 1,628 | 1,524 | ||
Reinsurance receivables | 248 | |||
Corporate & Other | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Total net liability for unpaid claim and claim adjustment expenses | 175 | $ 192 | ||
Reinsurance receivables | 2,059 | |||
Life & Group | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Total net liability for unpaid claim and claim adjustment expenses | 3,557 | |||
Reinsurance receivables | $ 159 |
Claim and Claim Adjustment Ex_5
Claim and Claim Adjustment Expense Reserves (Reconciliation of claim and claim adjustment expense reserves) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reserves, beginning of year: [Abstract] | |||
Gross | $ 21,984 | $ 22,004 | $ 22,343 |
Ceded | 4,019 | 3,934 | 4,094 |
Net reserves, beginning of year | 17,965 | 18,070 | 18,249 |
Net incurred claim and claim adjustment expenses: | |||
Provision for insured events of current year | 5,356 | 5,358 | 5,201 |
Increase (decrease) in provision for insured events of prior years | (127) | (179) | (381) |
Amortization of discount | 184 | 176 | 179 |
Total net incurred | 5,413 | 5,355 | 4,999 |
Net payments attributable to: | |||
Current year events | (992) | (1,046) | (975) |
Prior year events | (4,584) | (4,285) | (4,366) |
Total net payments | (5,576) | (5,331) | (5,341) |
Foreign currency translation adjustment and other | 83 | (129) | 163 |
Net reserves, end of year | 17,885 | 17,965 | 18,070 |
Ceded reserves, end of year | 3,835 | 4,019 | 3,934 |
Gross reserves, end of year | $ 21,720 | $ 21,984 | $ 22,004 |
Claim and Claim Adjustment Ex_6
Claim and Claim Adjustment Expense Reserves (Gross and net carried claim and claim adjustment expense reserves) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Gross Case Reserves | $ 10,989 | $ 11,395 | ||
Gross IBNR Reserves | 10,731 | 10,589 | ||
Total Gross Carried Claim and Claim Adjustment Expense Reserves | 21,720 | 21,984 | $ 22,004 | $ 22,343 |
Net Case Reserves | 9,178 | 9,523 | ||
Net IBNR Reserves | 8,707 | 8,442 | ||
Total Net Carried Claim and Claim Adjustment Expense Reserves | 17,885 | 17,965 | $ 18,070 | $ 18,249 |
Specialty | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Gross Case Reserves | 1,481 | 1,623 | ||
Gross IBNR Reserves | 3,757 | 3,842 | ||
Total Gross Carried Claim and Claim Adjustment Expense Reserves | 5,238 | 5,465 | ||
Net Case Reserves | 1,343 | 1,483 | ||
Net IBNR Reserves | 3,333 | 3,348 | ||
Total Net Carried Claim and Claim Adjustment Expense Reserves | 4,676 | 4,831 | ||
Commercial | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Gross Case Reserves | 3,937 | 4,181 | ||
Gross IBNR Reserves | 4,719 | 4,562 | ||
Total Gross Carried Claim and Claim Adjustment Expense Reserves | 8,656 | 8,743 | ||
Net Case Reserves | 3,543 | 3,831 | ||
Net IBNR Reserves | 4,306 | 4,167 | ||
Total Net Carried Claim and Claim Adjustment Expense Reserves | 7,849 | 7,998 | ||
International | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Gross Case Reserves | 858 | 867 | ||
Gross IBNR Reserves | 1,018 | 883 | ||
Total Gross Carried Claim and Claim Adjustment Expense Reserves | 1,876 | 1,750 | ||
Net Case Reserves | 759 | 749 | ||
Net IBNR Reserves | 869 | 775 | ||
Total Net Carried Claim and Claim Adjustment Expense Reserves | 1,628 | 1,524 | ||
Life & Group | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Gross Case Reserves | 3,576 | 3,516 | ||
Gross IBNR Reserves | 140 | 85 | ||
Total Gross Carried Claim and Claim Adjustment Expense Reserves | 3,716 | 3,601 | ||
Net Case Reserves | 3,441 | 3,364 | ||
Net IBNR Reserves | 116 | 56 | ||
Total Net Carried Claim and Claim Adjustment Expense Reserves | 3,557 | 3,420 | ||
Corporate & Other | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Gross Case Reserves | 1,137 | 1,208 | ||
Gross IBNR Reserves | 1,097 | 1,217 | ||
Total Gross Carried Claim and Claim Adjustment Expense Reserves | 2,234 | 2,425 | ||
Net Case Reserves | 92 | 96 | ||
Net IBNR Reserves | 83 | 96 | ||
Total Net Carried Claim and Claim Adjustment Expense Reserves | $ 175 | $ 192 |
Claim and Claim Adjustment Ex_7
Claim and Claim Adjustment Expense Reserves (Net prior year development) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Pretax (favorable) unfavorable premium development, excluding Life & Group | $ (73) | $ (181) | $ (308) |
Specialty | |||
Segment Reporting Information [Line Items] | |||
Pretax (favorable) unfavorable premium development, excluding Life & Group | (92) | (150) | (174) |
Commercial | |||
Segment Reporting Information [Line Items] | |||
Pretax (favorable) unfavorable premium development, excluding Life & Group | (2) | (25) | (115) |
International | |||
Segment Reporting Information [Line Items] | |||
Pretax (favorable) unfavorable premium development, excluding Life & Group | 21 | (4) | (9) |
Corporate & Other | |||
Segment Reporting Information [Line Items] | |||
Pretax (favorable) unfavorable premium development, excluding Life & Group | $ 0 | $ (2) | $ (10) |
Claim and Claim Adjustment Ex_8
Claim and Claim Adjustment Expense Reserves (Specialty - Net prior year claim and allocated claim adjustment expense reserve development) (Details) - Specialty - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Medical Professional Liability | $ 75 | $ 47 | $ 30 |
Other Professional Liability and Management Liability | (69) | (127) | (126) |
Surety | (92) | (70) | (84) |
Warranty | (15) | (10) | 4 |
Other | 9 | 10 | 2 |
Total pretax (favorable) unfavorable development | $ (92) | $ (150) | $ (174) |
Claim and Claim Adjustment Ex_9
Claim and Claim Adjustment Expense Reserves (Specialty - Line of Business Composition) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total net liability for unpaid claim and claim adjustment expenses | $ 17,885 | $ 17,965 | $ 18,070 | $ 18,249 |
Specialty | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total net liability for unpaid claim and claim adjustment expenses | 4,676 | $ 4,831 | ||
Medical Professional Liability | Specialty | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total net liability for unpaid claim and claim adjustment expenses | 1,429 | |||
Other Professional Liability and Management Liability | Specialty | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total net liability for unpaid claim and claim adjustment expenses | 2,739 | |||
Surety | Specialty | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total net liability for unpaid claim and claim adjustment expenses | 369 | |||
Warranty | Specialty | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total net liability for unpaid claim and claim adjustment expenses | 29 | |||
Other | Specialty | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total net liability for unpaid claim and claim adjustment expenses | $ 110 |
Claim and Claim Adjustment E_10
Claim and Claim Adjustment Expense Reserves (Specialty - Medical Professional Liability - Cumulative Net Incurred Claims and Allocated Claim Adjustment Expenses) (Details) - Medical Professional Liability - Specialty $ in Millions | Dec. 31, 2019USD ($)claim | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) |
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 4,685 | |||||||||
IBNR | 853 | |||||||||
2010 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | 369 | $ 356 | $ 360 | $ 365 | $ 395 | $ 415 | $ 426 | $ 423 | $ 412 | $ 402 |
IBNR | $ 1 | |||||||||
Cumulative Number of Claims | claim | 14,624 | |||||||||
2011 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 439 | 437 | 437 | 434 | 439 | 468 | 443 | 437 | $ 429 | |
IBNR | $ 2 | |||||||||
Cumulative Number of Claims | claim | 16,526 | |||||||||
2012 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 499 | 493 | 484 | 493 | 498 | 508 | 469 | $ 464 | ||
IBNR | $ 8 | |||||||||
Cumulative Number of Claims | claim | 17,724 | |||||||||
2013 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 545 | 535 | 525 | 513 | 500 | 479 | $ 462 | |||
IBNR | $ 27 | |||||||||
Cumulative Number of Claims | claim | 19,510 | |||||||||
2014 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 529 | 535 | 530 | 537 | 489 | $ 450 | ||||
IBNR | $ 16 | |||||||||
Cumulative Number of Claims | claim | 19,723 | |||||||||
2015 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 488 | 494 | 510 | 499 | $ 433 | |||||
IBNR | $ 29 | |||||||||
Cumulative Number of Claims | claim | 18,029 | |||||||||
2016 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 499 | 485 | 487 | $ 427 | ||||||
IBNR | $ 63 | |||||||||
Cumulative Number of Claims | claim | 15,823 | |||||||||
2017 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 458 | 449 | $ 412 | |||||||
IBNR | $ 127 | |||||||||
Cumulative Number of Claims | claim | 14,636 | |||||||||
2018 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 429 | $ 404 | ||||||||
IBNR | $ 216 | |||||||||
Cumulative Number of Claims | claim | 13,760 | |||||||||
2019 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 430 | |||||||||
IBNR | $ 364 | |||||||||
Cumulative Number of Claims | claim | 10,467 |
Claim and Claim Adjustment E_11
Claim and Claim Adjustment Expense Reserves (Specialty - Medical Professional Liability - Net Cumulative Paid Claim and Claim Adjustment Expenses) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010 | $ 4,584 | $ 4,285 | $ 4,366 | |||||||
Total net liability for unpaid claim and claim adjustment expenses | 17,885 | 17,965 | 18,070 | $ 18,249 | ||||||
Specialty | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Total net liability for unpaid claim and claim adjustment expenses | 4,676 | 4,831 | ||||||||
Medical Professional Liability | Specialty | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 3,303 | |||||||||
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented | 1,382 | |||||||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010 | 22 | |||||||||
Liability for unallocated claim adjustment expenses for accident years presented | 25 | |||||||||
Total net liability for unpaid claim and claim adjustment expenses | 1,429 | |||||||||
Medical Professional Liability | 2010 | Specialty | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 353 | 350 | 346 | 337 | $ 326 | $ 306 | $ 257 | $ 173 | $ 86 | $ 10 |
Medical Professional Liability | 2011 | Specialty | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 414 | 409 | 398 | 375 | 347 | 295 | 208 | 109 | $ 17 | |
Medical Professional Liability | 2012 | Specialty | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 479 | 457 | 427 | 388 | 323 | 221 | 117 | $ 14 | ||
Medical Professional Liability | 2013 | Specialty | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 495 | 462 | 414 | 355 | 255 | 119 | $ 17 | |||
Medical Professional Liability | 2014 | Specialty | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 472 | 417 | 359 | 258 | 136 | $ 23 | ||||
Medical Professional Liability | 2015 | Specialty | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 384 | 313 | 230 | 101 | $ 22 | |||||
Medical Professional Liability | 2016 | Specialty | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 339 | 246 | 121 | $ 18 | ||||||
Medical Professional Liability | 2017 | Specialty | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 235 | 107 | $ 19 | |||||||
Medical Professional Liability | 2018 | Specialty | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 115 | $ 21 | ||||||||
Medical Professional Liability | 2019 | Specialty | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | $ 17 |
Claim and Claim Adjustment E_12
Claim and Claim Adjustment Expense Reserves (Specialty - Medical Professional Liability - Net Strengthening or Releasing of Prior Accident Year Reserves) (Details) - Specialty - USD ($) $ in Millions | 12 Months Ended | 24 Months Ended | 36 Months Ended | 48 Months Ended | 60 Months Ended | 72 Months Ended | 84 Months Ended | 96 Months Ended | 108 Months Ended | 120 Months Ended | ||||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | |
Claims Development [Line Items] | ||||||||||||||||||
Total | $ 75 | $ 47 | $ 30 | |||||||||||||||
Medical Professional Liability | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 67 | 39 | 65 | |||||||||||||||
Total net development for accident years prior to 2010 | 6 | 9 | (28) | |||||||||||||||
Total unallocated claim adjustment expense development | 2 | (1) | (7) | |||||||||||||||
Total | 75 | 47 | 30 | |||||||||||||||
Medical Professional Liability | 2010 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 13 | (4) | (5) | $ (30) | $ (20) | $ (11) | $ 3 | $ 11 | $ 10 | $ (33) | ||||||||
Medical Professional Liability | 2011 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 2 | 0 | 3 | (5) | (29) | 25 | 6 | $ 8 | $ 10 | |||||||||
Medical Professional Liability | 2012 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 6 | 9 | (9) | (5) | (10) | 39 | $ 5 | $ 35 | ||||||||||
Medical Professional Liability | 2013 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 10 | 10 | 12 | 13 | 21 | $ 17 | $ 83 | |||||||||||
Medical Professional Liability | 2014 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (6) | 5 | (7) | 48 | $ 39 | $ 79 | ||||||||||||
Medical Professional Liability | 2015 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (6) | (16) | 11 | $ 66 | $ 55 | |||||||||||||
Medical Professional Liability | 2016 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 14 | (2) | $ 60 | $ 72 | ||||||||||||||
Medical Professional Liability | 2017 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 9 | $ 37 | $ 46 | |||||||||||||||
Medical Professional Liability | 2018 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | $ 25 | $ 25 |
Claim and Claim Adjustment E_13
Claim and Claim Adjustment Expense Reserves (Specialty - Other Professional Liability and Management Liability - Net Incurred Claims and Allocated Claim Adjustment Expenses) (Details) - Other Professional Liability and Management Liability - Specialty $ in Millions | Dec. 31, 2019USD ($)claim | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) |
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 8,466 | |||||||||
IBNR | 1,957 | |||||||||
2010 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | 821 | $ 821 | $ 827 | $ 824 | $ 837 | $ 847 | $ 848 | $ 848 | $ 828 | $ 828 |
IBNR | $ 9 | |||||||||
Cumulative Number of Claims | claim | 17,891 | |||||||||
2011 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 885 | 888 | 899 | 911 | 944 | 949 | 934 | 908 | $ 880 | |
IBNR | $ 21 | |||||||||
Cumulative Number of Claims | claim | 18,738 | |||||||||
2012 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 831 | 833 | 846 | 840 | 878 | 887 | 909 | $ 923 | ||
IBNR | $ 18 | |||||||||
Cumulative Number of Claims | claim | 18,499 | |||||||||
2013 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 850 | 863 | 866 | 885 | 926 | 894 | $ 884 | |||
IBNR | $ 45 | |||||||||
Cumulative Number of Claims | claim | 17,928 | |||||||||
2014 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 854 | 835 | 831 | 885 | 898 | $ 878 | ||||
IBNR | $ 74 | |||||||||
Cumulative Number of Claims | claim | 17,553 | |||||||||
2015 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 807 | 832 | 877 | 892 | $ 888 | |||||
IBNR | $ 120 | |||||||||
Cumulative Number of Claims | claim | 17,390 | |||||||||
2016 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 904 | 900 | 900 | $ 901 | ||||||
IBNR | $ 188 | |||||||||
Cumulative Number of Claims | claim | 17,890 | |||||||||
2017 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 813 | 845 | $ 847 | |||||||
IBNR | $ 308 | |||||||||
Cumulative Number of Claims | claim | 18,015 | |||||||||
2018 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 864 | $ 850 | ||||||||
IBNR | $ 460 | |||||||||
Cumulative Number of Claims | claim | 19,468 | |||||||||
2019 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 837 | |||||||||
IBNR | $ 714 | |||||||||
Cumulative Number of Claims | claim | 16,722 |
Claim and Claim Adjustment E_14
Claim and Claim Adjustment Expense Reserves (Specialty - Other Professional Liability and Management Liability - Net Cumulative Paid Claim and Claim Adjustment Expenses) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | ||||||||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010 | $ 4,584 | $ 4,285 | $ 4,366 | |||||||
Total net liability for unpaid claim and claim adjustment expenses | 17,885 | 17,965 | 18,070 | $ 18,249 | ||||||
Specialty | ||||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | ||||||||||
Total net liability for unpaid claim and claim adjustment expenses | 4,676 | 4,831 | ||||||||
Other Professional Liability and Management Liability | Specialty | ||||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 5,865 | |||||||||
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented | 2,601 | |||||||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010 | 88 | |||||||||
Liability for unallocated claim adjustment expenses for accident years presented | 50 | |||||||||
Total net liability for unpaid claim and claim adjustment expenses | 2,739 | |||||||||
Other Professional Liability and Management Liability | 2010 | Specialty | ||||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 790 | 784 | 752 | 721 | $ 670 | $ 630 | $ 541 | $ 405 | $ 204 | $ 31 |
Other Professional Liability and Management Liability | 2011 | Specialty | ||||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 828 | 796 | 781 | 726 | 683 | 605 | 503 | 314 | $ 71 | |
Other Professional Liability and Management Liability | 2012 | Specialty | ||||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 792 | 755 | 711 | 651 | 573 | 400 | 248 | $ 56 | ||
Other Professional Liability and Management Liability | 2013 | Specialty | ||||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 771 | 754 | 702 | 618 | 447 | 249 | $ 54 | |||
Other Professional Liability and Management Liability | 2014 | Specialty | ||||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 707 | 647 | 515 | 392 | 223 | $ 51 | ||||
Other Professional Liability and Management Liability | 2015 | Specialty | ||||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 612 | 542 | 404 | 234 | $ 60 | |||||
Other Professional Liability and Management Liability | 2016 | Specialty | ||||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 625 | 466 | 248 | $ 64 | ||||||
Other Professional Liability and Management Liability | 2017 | Specialty | ||||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 394 | 222 | $ 57 | |||||||
Other Professional Liability and Management Liability | 2018 | Specialty | ||||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 282 | $ 54 | ||||||||
Other Professional Liability and Management Liability | 2019 | Specialty | ||||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | $ 64 |
Claim and Claim Adjustment E_15
Claim and Claim Adjustment Expense Reserves (Specialty - Other Professional Liability and Management Liability - Net Strengthening or Releasing of Prior Accident Year Reserves) (Details) - Specialty - USD ($) $ in Millions | 12 Months Ended | 24 Months Ended | 36 Months Ended | 48 Months Ended | 60 Months Ended | 72 Months Ended | 84 Months Ended | 96 Months Ended | 108 Months Ended | 120 Months Ended | ||||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | |
Claims Development [Line Items] | ||||||||||||||||||
Net prior year claim and allocated claim adjustment expense reserve development, Other Professional Liability and Management Liability | $ (69) | $ (127) | $ (126) | |||||||||||||||
Other Professional Liability and Management Liability | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (38) | (76) | (92) | |||||||||||||||
Total net development for accident years prior to 2010 | (17) | (44) | (27) | |||||||||||||||
Total unallocated claim adjustment expense development | (14) | (7) | (7) | |||||||||||||||
Net prior year claim and allocated claim adjustment expense reserve development, Other Professional Liability and Management Liability | (69) | (127) | (126) | |||||||||||||||
Other Professional Liability and Management Liability | 2010 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 0 | (6) | 3 | $ (13) | $ (10) | $ (1) | $ 0 | $ 20 | $ 0 | $ (7) | ||||||||
Other Professional Liability and Management Liability | 2011 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (3) | (11) | (12) | (33) | (5) | 15 | 26 | $ 28 | $ 5 | |||||||||
Other Professional Liability and Management Liability | 2012 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (2) | (13) | 6 | (38) | (9) | (22) | $ (14) | $ (92) | ||||||||||
Other Professional Liability and Management Liability | 2013 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (13) | (3) | (19) | (41) | 32 | $ 10 | $ (34) | |||||||||||
Other Professional Liability and Management Liability | 2014 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 19 | 4 | (54) | (13) | $ 20 | $ (24) | ||||||||||||
Other Professional Liability and Management Liability | 2015 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (25) | (45) | (15) | $ 4 | $ (81) | |||||||||||||
Other Professional Liability and Management Liability | 2016 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 4 | 0 | $ (1) | $ 3 | ||||||||||||||
Other Professional Liability and Management Liability | 2017 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (32) | $ (2) | $ (34) | |||||||||||||||
Other Professional Liability and Management Liability | 2018 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | $ 14 | $ 14 |
Claim and Claim Adjustment E_16
Claim and Claim Adjustment Expense Reserves (Specialty - Surety - Net Incurred Claims and Allocated Claim Adjustment Expenses) (Details) - Surety - Specialty $ in Millions | Dec. 31, 2019USD ($)claim | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) |
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 766 | |||||||||
IBNR | 289 | |||||||||
2010 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | 61 | $ 61 | $ 59 | $ 63 | $ 66 | $ 76 | $ 84 | $ 111 | $ 112 | $ 112 |
IBNR | $ 0 | |||||||||
Cumulative Number of Claims | claim | 5,982 | |||||||||
2011 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 62 | 62 | 66 | 70 | 75 | 87 | 116 | 121 | $ 120 | |
IBNR | $ 2 | |||||||||
Cumulative Number of Claims | claim | 5,813 | |||||||||
2012 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 38 | 39 | 45 | 52 | 70 | 98 | 122 | $ 120 | ||
IBNR | $ 1 | |||||||||
Cumulative Number of Claims | claim | 5,568 | |||||||||
2013 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 83 | 87 | 91 | 106 | 115 | 121 | $ 120 | |||
IBNR | $ 3 | |||||||||
Cumulative Number of Claims | claim | 5,062 | |||||||||
2014 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 45 | 60 | 69 | 94 | 124 | $ 123 | ||||
IBNR | $ 4 | |||||||||
Cumulative Number of Claims | claim | 5,078 | |||||||||
2015 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 63 | 79 | 104 | 131 | $ 131 | |||||
IBNR | $ 11 | |||||||||
Cumulative Number of Claims | claim | 4,976 | |||||||||
2016 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 84 | 109 | 124 | $ 124 | ||||||
IBNR | $ 36 | |||||||||
Cumulative Number of Claims | claim | 5,379 | |||||||||
2017 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 103 | 115 | $ 120 | |||||||
IBNR | $ 54 | |||||||||
Cumulative Number of Claims | claim | 5,496 | |||||||||
2018 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 108 | $ 114 | ||||||||
IBNR | $ 76 | |||||||||
Cumulative Number of Claims | claim | 5,451 | |||||||||
2019 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 119 | |||||||||
IBNR | $ 102 | |||||||||
Cumulative Number of Claims | claim | 3,549 |
Claim and Claim Adjustment E_17
Claim and Claim Adjustment Expense Reserves (Specialty - Surety - Net Cumulative Paid Claim and Claim Adjustment Expenses) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010 | $ 4,584 | $ 4,285 | $ 4,366 | |||||||
Total net liability for unpaid claim and claim adjustment expenses | 17,885 | 17,965 | 18,070 | $ 18,249 | ||||||
Specialty | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Total net liability for unpaid claim and claim adjustment expenses | 4,676 | 4,831 | ||||||||
Surety | Specialty | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 427 | |||||||||
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented | 339 | |||||||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010 | 10 | |||||||||
Liability for unallocated claim adjustment expenses for accident years presented | 20 | |||||||||
Total net liability for unpaid claim and claim adjustment expenses | 369 | |||||||||
Surety | Specialty | 2010 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 53 | 52 | 52 | 55 | $ 58 | $ 57 | $ 55 | $ 50 | $ 34 | $ 13 |
Surety | Specialty | 2011 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 57 | 57 | 56 | 60 | 60 | 58 | 55 | 42 | $ 19 | |
Surety | Specialty | 2012 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 37 | 37 | 36 | 35 | 35 | 34 | 32 | $ 5 | ||
Surety | Specialty | 2013 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 77 | 78 | 78 | 78 | 69 | 40 | $ 16 | |||
Surety | Specialty | 2014 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 38 | 38 | 36 | 38 | 30 | $ 7 | ||||
Surety | Specialty | 2015 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 42 | 40 | 38 | 26 | $ 7 | |||||
Surety | Specialty | 2016 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 45 | 45 | 37 | $ 5 | ||||||
Surety | Specialty | 2017 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 41 | 37 | $ 23 | |||||||
Surety | Specialty | 2018 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 25 | $ 5 | ||||||||
Surety | Specialty | 2019 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | $ 12 |
Claim and Claim Adjustment E_18
Claim and Claim Adjustment Expense Reserves (Specialty - Surety - Net Strengthening or Releasing of Prior Accident Year Reserves) (Details) - Specialty - USD ($) $ in Millions | 12 Months Ended | 24 Months Ended | 36 Months Ended | 48 Months Ended | 60 Months Ended | 72 Months Ended | 84 Months Ended | 96 Months Ended | 108 Months Ended | 120 Months Ended | ||||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | |
Claims Development [Line Items] | ||||||||||||||||||
Net prior year claim and allocated claim adjustment expense reserve development, Surety | $ (92) | $ (70) | $ (84) | |||||||||||||||
Surety | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (79) | (66) | (82) | |||||||||||||||
Total net development for accident years prior to 2010 | (3) | (4) | 1 | |||||||||||||||
Total unallocated claim adjustment expense development | (10) | 0 | (3) | |||||||||||||||
Net prior year claim and allocated claim adjustment expense reserve development, Surety | (92) | (70) | (84) | |||||||||||||||
Surety | 2010 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 0 | 2 | (4) | $ (3) | $ (10) | $ (8) | $ (27) | $ (1) | $ 0 | $ (51) | ||||||||
Surety | 2011 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 0 | (4) | (4) | (5) | (12) | (29) | (5) | $ 1 | $ (58) | |||||||||
Surety | 2012 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (1) | (6) | (7) | (18) | (28) | (24) | $ 2 | $ (82) | ||||||||||
Surety | 2013 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (4) | (4) | (15) | (9) | (6) | $ 1 | $ (37) | |||||||||||
Surety | 2014 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (15) | (9) | (25) | (30) | $ 1 | $ (78) | ||||||||||||
Surety | 2015 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (16) | (25) | (27) | $ 0 | $ (68) | |||||||||||||
Surety | 2016 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (25) | (15) | $ 0 | $ (40) | ||||||||||||||
Surety | 2017 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (12) | $ (5) | $ (17) | |||||||||||||||
Surety | 2018 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | $ (6) | $ (6) |
Claim and Claim Adjustment E_19
Claim and Claim Adjustment Expense Reserves (Commercial - Net prior year claim and allocated claim adjustment expense reserve development) (Details) - Commercial - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Commercial Auto | $ (25) | $ 1 | $ (35) |
General Liability | 54 | 32 | (24) |
Workers' Compensation | (13) | (32) | (63) |
Property and Other | (18) | (26) | 7 |
Total pretax (favorable) unfavorable development | $ (2) | $ (25) | $ (115) |
Claim and Claim Adjustment E_20
Claim and Claim Adjustment Expense Reserves (Commercial - Commercial Auto - Short Duration Contracts) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total net liability for unpaid claim and claim adjustment expenses | $ 17,885 | $ 17,965 | $ 18,070 | $ 18,249 |
Commercial | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total net liability for unpaid claim and claim adjustment expenses | 7,849 | $ 7,998 | ||
Commercial Auto | Commercial | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total net liability for unpaid claim and claim adjustment expenses | 404 | |||
General Liability | Commercial | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total net liability for unpaid claim and claim adjustment expenses | 3,176 | |||
Workers' Compensation | Commercial | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total net liability for unpaid claim and claim adjustment expenses | 3,932 | |||
Property and Other | Commercial | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total net liability for unpaid claim and claim adjustment expenses | $ 337 |
Claim and Claim Adjustment E_21
Claim and Claim Adjustment Expense Reserves (Commercial - Commercial Auto - Net Incurred Claims and Allocated Claim Adjustment Expenses) (Details) - Commercial Auto - Commercial $ in Millions | Dec. 31, 2019USD ($)claim | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) |
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 2,371 | |||||||||
IBNR | 207 | |||||||||
2010 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | 288 | $ 288 | $ 288 | $ 289 | $ 293 | $ 298 | $ 291 | $ 287 | $ 283 | $ 267 |
IBNR | $ 1 | |||||||||
Cumulative Number of Claims | claim | 48,035 | |||||||||
2011 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 291 | 294 | 294 | 294 | 300 | 302 | 288 | 281 | $ 268 | |
IBNR | $ 0 | |||||||||
Cumulative Number of Claims | claim | 47,909 | |||||||||
2012 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 297 | 299 | 299 | 307 | 303 | 299 | 289 | $ 275 | ||
IBNR | $ 3 | |||||||||
Cumulative Number of Claims | claim | 46,288 | |||||||||
2013 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 241 | 245 | 245 | 249 | 265 | 265 | $ 246 | |||
IBNR | $ 2 | |||||||||
Cumulative Number of Claims | claim | 39,429 | |||||||||
2014 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 201 | 205 | 205 | 212 | 223 | $ 234 | ||||
IBNR | $ 3 | |||||||||
Cumulative Number of Claims | claim | 33,622 | |||||||||
2015 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 183 | 190 | 190 | 199 | $ 201 | |||||
IBNR | $ 7 | |||||||||
Cumulative Number of Claims | claim | 30,418 | |||||||||
2016 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 186 | 186 | 186 | $ 198 | ||||||
IBNR | $ 7 | |||||||||
Cumulative Number of Claims | claim | 30,414 | |||||||||
2017 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 200 | 198 | $ 199 | |||||||
IBNR | $ 9 | |||||||||
Cumulative Number of Claims | claim | 30,850 | |||||||||
2018 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 227 | $ 229 | ||||||||
IBNR | $ 47 | |||||||||
Cumulative Number of Claims | claim | 33,959 | |||||||||
2019 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 257 | |||||||||
IBNR | $ 128 | |||||||||
Cumulative Number of Claims | claim | 31,455 |
Claim and Claim Adjustment E_22
Claim and Claim Adjustment Expense Reserves (Commercial - Commercial Auto - Net Cumulative Paid Claim and Claim Adjustment Expenses) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010 | $ 4,584 | $ 4,285 | $ 4,366 | |||||||
Total net liability for unpaid claim and claim adjustment expenses | 17,885 | 17,965 | 18,070 | $ 18,249 | ||||||
Commercial | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Total net liability for unpaid claim and claim adjustment expenses | 7,849 | 7,998 | ||||||||
Commercial Auto | Commercial | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 1,982 | |||||||||
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented | 389 | |||||||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010 | 1 | |||||||||
Liability for unallocated claim adjustment expenses for accident years presented | 14 | |||||||||
Total net liability for unpaid claim and claim adjustment expenses | 404 | |||||||||
Commercial Auto | Commercial | 2010 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 287 | 287 | 287 | 286 | $ 281 | $ 271 | $ 246 | $ 203 | $ 141 | $ 74 |
Commercial Auto | Commercial | 2011 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 289 | 289 | 287 | 284 | 274 | 248 | 199 | 145 | $ 79 | |
Commercial Auto | Commercial | 2012 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 291 | 290 | 285 | 282 | 259 | 220 | 160 | $ 78 | ||
Commercial Auto | Commercial | 2013 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 238 | 234 | 225 | 200 | 168 | 135 | $ 74 | |||
Commercial Auto | Commercial | 2014 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 196 | 187 | 166 | 137 | 102 | $ 64 | ||||
Commercial Auto | Commercial | 2015 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 172 | 153 | 130 | 96 | $ 52 | |||||
Commercial Auto | Commercial | 2016 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 154 | 126 | 93 | $ 52 | ||||||
Commercial Auto | Commercial | 2017 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 150 | 107 | $ 58 | |||||||
Commercial Auto | Commercial | 2018 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 128 | $ 66 | ||||||||
Commercial Auto | Commercial | 2019 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | $ 77 |
Claim and Claim Adjustment E_23
Claim and Claim Adjustment Expense Reserves (Commercial - Commercial Auto - Net Strengthening or Releasing of Prior Accident Year Reserves) (Details) - Commercial - USD ($) $ in Millions | 12 Months Ended | 24 Months Ended | 36 Months Ended | 48 Months Ended | 60 Months Ended | 72 Months Ended | 84 Months Ended | 96 Months Ended | 108 Months Ended | 120 Months Ended | ||||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Net prior year claim and allocated claim adjustment expense reserve development, Commercial Auto | $ (25) | $ 1 | $ (35) | |||||||||||||||
Commercial Auto | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (20) | (1) | (41) | |||||||||||||||
Total net development for accident years prior to 2010 | (4) | 1 | 4 | |||||||||||||||
Total unallocated claim adjustment expense development | (1) | 1 | 2 | |||||||||||||||
Net prior year claim and allocated claim adjustment expense reserve development, Commercial Auto | (25) | 1 | (35) | |||||||||||||||
2010 | Commercial Auto | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 0 | 0 | (1) | $ (4) | $ (5) | $ 7 | $ 4 | $ 4 | $ 16 | $ 21 | ||||||||
2011 | Commercial Auto | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (3) | 0 | 0 | (6) | (2) | 14 | 7 | $ 13 | $ 23 | |||||||||
2012 | Commercial Auto | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (2) | 0 | (8) | 4 | 4 | 10 | $ 14 | $ 22 | ||||||||||
2013 | Commercial Auto | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (4) | 0 | (4) | (16) | 0 | $ 19 | $ (5) | |||||||||||
2014 | Commercial Auto | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (4) | 0 | (7) | (11) | $ (11) | $ (33) | ||||||||||||
2015 | Commercial Auto | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (7) | 0 | (9) | $ (2) | $ (18) | |||||||||||||
2016 | Commercial Auto | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 0 | 0 | $ (12) | $ (12) | ||||||||||||||
2017 | Commercial Auto | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 2 | $ (1) | $ 1 | |||||||||||||||
2018 | Commercial Auto | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | $ (2) | $ (2) |
Claim and Claim Adjustment E_24
Claim and Claim Adjustment Expense Reserves (Commercial - General Liability - Net Incurred Claims and Allocated Claim Adjustment Expenses) (Details) - General Liability - Commercial $ in Millions | Dec. 31, 2019USD ($)claim | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) |
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 6,492 | |||||||||
IBNR | 1,629 | |||||||||
2010 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | 690 | $ 691 | $ 691 | $ 697 | $ 726 | $ 750 | $ 709 | $ 658 | $ 664 | $ 646 |
IBNR | $ 19 | |||||||||
Cumulative Number of Claims | claim | 44,229 | |||||||||
2011 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 667 | 669 | 670 | 681 | 676 | 677 | 631 | 589 | $ 591 | |
IBNR | $ 20 | |||||||||
Cumulative Number of Claims | claim | 39,361 | |||||||||
2012 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 630 | 635 | 635 | 619 | 636 | 639 | 611 | $ 587 | ||
IBNR | $ 31 | |||||||||
Cumulative Number of Claims | claim | 35,219 | |||||||||
2013 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 620 | 623 | 613 | 655 | 650 | 655 | $ 650 | |||
IBNR | $ 27 | |||||||||
Cumulative Number of Claims | claim | 33,570 | |||||||||
2014 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 658 | 635 | 631 | 654 | 658 | $ 653 | ||||
IBNR | $ 57 | |||||||||
Cumulative Number of Claims | claim | 27,877 | |||||||||
2015 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 600 | 589 | 574 | 576 | $ 581 | |||||
IBNR | $ 73 | |||||||||
Cumulative Number of Claims | claim | 23,834 | |||||||||
2016 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 671 | 667 | 659 | $ 623 | ||||||
IBNR | $ 166 | |||||||||
Cumulative Number of Claims | claim | 23,817 | |||||||||
2017 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 632 | 632 | $ 632 | |||||||
IBNR | $ 226 | |||||||||
Cumulative Number of Claims | claim | 21,114 | |||||||||
2018 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 644 | $ 653 | ||||||||
IBNR | $ 408 | |||||||||
Cumulative Number of Claims | claim | 17,889 | |||||||||
2019 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 680 | |||||||||
IBNR | $ 602 | |||||||||
Cumulative Number of Claims | claim | 12,916 |
Claim and Claim Adjustment E_25
Claim and Claim Adjustment Expense Reserves (Commercial - General Liability - Net Cumulative Paid Claim and Claim Adjustment Expenses) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010 | $ 4,584 | $ 4,285 | $ 4,366 | |||||||
Total net liability for unpaid claim and claim adjustment expenses | 17,885 | 17,965 | 18,070 | $ 18,249 | ||||||
Commercial | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Total net liability for unpaid claim and claim adjustment expenses | 7,849 | 7,998 | ||||||||
General Liability | Commercial | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 4,217 | |||||||||
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented | 2,275 | |||||||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010 | 836 | |||||||||
Liability for unallocated claim adjustment expenses for accident years presented | 65 | |||||||||
Total net liability for unpaid claim and claim adjustment expenses | 3,176 | |||||||||
General Liability | Commercial | 2010 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 667 | 656 | 652 | 642 | $ 611 | $ 561 | $ 429 | $ 280 | $ 145 | $ 27 |
General Liability | Commercial | 2011 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 638 | 622 | 602 | 568 | 517 | 411 | 273 | 148 | $ 28 | |
General Liability | Commercial | 2012 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 579 | 559 | 510 | 454 | 374 | 247 | 132 | $ 28 | ||
General Liability | Commercial | 2013 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 551 | 510 | 450 | 352 | 240 | 128 | $ 31 | |||
General Liability | Commercial | 2014 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 547 | 481 | 376 | 247 | 119 | $ 31 | ||||
General Liability | Commercial | 2015 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 446 | 357 | 230 | 110 | $ 19 | |||||
General Liability | Commercial | 2016 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 407 | 279 | 163 | $ 32 | ||||||
General Liability | Commercial | 2017 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 250 | 118 | $ 23 | |||||||
General Liability | Commercial | 2018 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 107 | $ 33 | ||||||||
General Liability | Commercial | 2019 | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | $ 25 |
Claim and Claim Adjustment E_26
Claim and Claim Adjustment Expense Reserves (Commercial - General Liability - Net Strengthening or Releasing of Prior Accident Year Reserves) (Details) - Commercial - USD ($) $ in Millions | 12 Months Ended | 24 Months Ended | 36 Months Ended | 48 Months Ended | 60 Months Ended | 72 Months Ended | 84 Months Ended | 96 Months Ended | 108 Months Ended | 120 Months Ended | ||||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Net prior year claim and allocated claim adjustment expense reserve development, General Liability | $ 54 | $ 32 | $ (24) | |||||||||||||||
General Liability | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 18 | 36 | (32) | |||||||||||||||
Total net development for accident years prior to 2010 | 29 | 0 | 0 | |||||||||||||||
Total unallocated claim adjustment expense development | 7 | (4) | 8 | |||||||||||||||
Net prior year claim and allocated claim adjustment expense reserve development, General Liability | 54 | 32 | (24) | |||||||||||||||
General Liability | 2010 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (1) | 0 | (6) | $ (29) | $ (24) | $ 41 | $ 51 | $ (6) | $ 18 | $ 44 | ||||||||
General Liability | 2011 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (2) | (1) | (11) | 5 | (1) | 46 | 42 | $ (2) | $ 76 | |||||||||
General Liability | 2012 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (5) | 0 | 16 | (17) | (3) | 28 | $ 24 | $ 43 | ||||||||||
General Liability | 2013 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (3) | 10 | (42) | 5 | (5) | $ 5 | $ (30) | |||||||||||
General Liability | 2014 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 23 | 4 | (23) | (4) | $ 5 | $ 5 | ||||||||||||
General Liability | 2015 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 11 | 15 | (2) | $ (5) | $ 19 | |||||||||||||
General Liability | 2016 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 4 | 8 | $ 36 | $ 48 | ||||||||||||||
General Liability | 2017 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 0 | $ 0 | $ 0 | |||||||||||||||
General Liability | 2018 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | $ (9) | $ (9) |
Claim and Claim Adjustment E_27
Claim and Claim Adjustment Expense Reserves (Commercial - Workers' Compensation - Net Incurred Claims and Allocated Claim Adjustment Expenses) (Details) - Workers' Compensation - Commercial $ in Millions | Dec. 31, 2019USD ($)claim | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) |
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 5,187 | |||||||||
IBNR | 1,208 | |||||||||
2010 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | 735 | $ 732 | $ 733 | $ 730 | $ 710 | $ 698 | $ 676 | $ 654 | $ 632 | $ 583 |
IBNR | $ 55 | |||||||||
Cumulative Number of Claims | claim | 49,333 | |||||||||
2011 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 688 | 674 | 676 | 676 | 651 | 659 | 647 | 641 | $ 607 | |
IBNR | $ 40 | |||||||||
Cumulative Number of Claims | claim | 45,959 | |||||||||
2012 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 668 | 671 | 673 | 678 | 669 | 659 | 627 | $ 601 | ||
IBNR | $ 67 | |||||||||
Cumulative Number of Claims | claim | 42,586 | |||||||||
2013 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 561 | 582 | 593 | 618 | 592 | 572 | $ 537 | |||
IBNR | $ 93 | |||||||||
Cumulative Number of Claims | claim | 38,688 | |||||||||
2014 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 446 | 450 | 452 | 479 | 480 | $ 467 | ||||
IBNR | $ 99 | |||||||||
Cumulative Number of Claims | claim | 33,480 | |||||||||
2015 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 394 | 408 | 406 | 431 | $ 422 | |||||
IBNR | $ 130 | |||||||||
Cumulative Number of Claims | claim | 31,861 | |||||||||
2016 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 382 | 396 | 405 | $ 426 | ||||||
IBNR | $ 144 | |||||||||
Cumulative Number of Claims | claim | 31,945 | |||||||||
2017 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 421 | 432 | $ 440 | |||||||
IBNR | $ 138 | |||||||||
Cumulative Number of Claims | claim | 33,029 | |||||||||
2018 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 440 | $ 450 | ||||||||
IBNR | $ 185 | |||||||||
Cumulative Number of Claims | claim | 34,647 | |||||||||
2019 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 452 | |||||||||
IBNR | $ 257 | |||||||||
Cumulative Number of Claims | claim | 29,795 |
Claim and Claim Adjustment E_28
Claim and Claim Adjustment Expense Reserves (Commercial - Workers' Compensation - Net Cumulative Paid Claim and Claim Adjustment Expenses) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010 | $ 4,584 | $ 4,285 | $ 4,366 | |||||||
Total net liability for unpaid claim and claim adjustment expenses | 17,885 | 17,965 | 18,070 | $ 18,249 | ||||||
Commercial | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Total net liability for unpaid claim and claim adjustment expenses | 7,849 | 7,998 | ||||||||
Workers' Compensation | Commercial | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 3,319 | |||||||||
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented | 1,868 | |||||||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010 | 2,061 | |||||||||
Other | (22) | |||||||||
Liability for unallocated claim adjustment expenses for accident years presented | 25 | |||||||||
Total net liability for unpaid claim and claim adjustment expenses | 3,932 | |||||||||
Workers' Compensation | 2010 | Commercial | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 631 | 625 | 615 | 577 | $ 542 | $ 510 | $ 442 | $ 359 | $ 251 | $ 97 |
Workers' Compensation | 2011 | Commercial | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 581 | 571 | 564 | 522 | 478 | 438 | 358 | 249 | $ 99 | |
Workers' Compensation | 2012 | Commercial | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 536 | 524 | 509 | 470 | 416 | 342 | 232 | $ 87 | ||
Workers' Compensation | 2013 | Commercial | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 411 | 419 | 417 | 370 | 300 | 213 | $ 80 | |||
Workers' Compensation | 2014 | Commercial | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 290 | 282 | 258 | 215 | 159 | $ 61 | ||||
Workers' Compensation | 2015 | Commercial | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 231 | 212 | 180 | 131 | $ 51 | |||||
Workers' Compensation | 2016 | Commercial | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 198 | 169 | 129 | $ 53 | ||||||
Workers' Compensation | 2017 | Commercial | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 207 | 151 | $ 63 | |||||||
Workers' Compensation | 2018 | Commercial | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 163 | $ 68 | ||||||||
Workers' Compensation | 2019 | Commercial | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | $ 71 |
Claim and Claim Adjustment E_29
Claim and Claim Adjustment Expense Reserves (Commercial - Workers' Compensation - Net Strengthening or Releasing of Prior Accident Year Reserves) (Details) - Commercial - USD ($) $ in Millions | 12 Months Ended | 24 Months Ended | 36 Months Ended | 48 Months Ended | 60 Months Ended | 72 Months Ended | 84 Months Ended | 96 Months Ended | 108 Months Ended | 120 Months Ended | ||||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Net prior year claim and allocated claim adjustment expense reserve development, Workers' Compensation | $ (13) | $ (32) | $ (63) | |||||||||||||||
Workers' Compensation | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (60) | (33) | (100) | |||||||||||||||
Adjustment for development on a discounted basis | 3 | 0 | (3) | |||||||||||||||
Total net development for accident years prior to 2010 | 21 | 8 | 39 | |||||||||||||||
Total unallocated claim adjustment expense development | 23 | (7) | 1 | |||||||||||||||
Net prior year claim and allocated claim adjustment expense reserve development, Workers' Compensation | (13) | (32) | (63) | |||||||||||||||
Workers' Compensation | 2010 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 3 | (1) | 3 | $ 20 | $ 12 | $ 22 | $ 22 | $ 22 | $ 49 | $ 152 | ||||||||
Workers' Compensation | 2011 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 14 | (2) | 0 | 25 | (8) | 12 | 6 | $ 34 | $ 81 | |||||||||
Workers' Compensation | 2012 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (3) | (2) | (5) | 9 | 10 | 32 | $ 26 | $ 67 | ||||||||||
Workers' Compensation | 2013 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (21) | (11) | (25) | 26 | 20 | $ 35 | $ 24 | |||||||||||
Workers' Compensation | 2014 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (4) | (2) | (27) | (1) | $ 13 | $ (21) | ||||||||||||
Workers' Compensation | 2015 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (14) | 2 | (25) | $ 9 | $ (28) | |||||||||||||
Workers' Compensation | 2016 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (14) | (9) | $ (21) | $ (44) | ||||||||||||||
Workers' Compensation | 2017 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (11) | $ (8) | $ (19) | |||||||||||||||
Workers' Compensation | 2018 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | $ (10) | $ (10) |
Claim and Claim Adjustment E_30
Claim and Claim Adjustment Expense Reserves (International - Net prior year claim and allocated claim adjustment expense reserve development) (Details) - International - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Casualty | $ (20) | $ (17) | $ 9 |
Property | 23 | 19 | (12) |
Energy and Marine | 2 | (19) | (12) |
Specialty | 16 | 13 | 6 |
Total pretax (favorable) unfavorable development | $ 21 | $ (4) | $ (9) |
Claim and Claim Adjustment E_31
Claim and Claim Adjustment Expense Reserves (International - Short Duration Contracts) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total net liability for unpaid claim and claim adjustment expenses | $ 17,885 | $ 17,965 | $ 18,070 | $ 18,249 |
International | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total net liability for unpaid claim and claim adjustment expenses | 1,628 | $ 1,524 | ||
Excluding Hardy | International | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total net liability for unpaid claim and claim adjustment expenses | 1,155 | |||
Hardy | International | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total net liability for unpaid claim and claim adjustment expenses | $ 473 |
Claim and Claim Adjustment E_32
Claim and Claim Adjustment Expense Reserves (International - Excluding Hardy - Net Incurred Claims and Allocated Claim Adjustment Expenses) (Details) - Excluding Hardy - International $ in Millions | Dec. 31, 2019USD ($)claim | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) |
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 2,892 | |||||||||
IBNR | 623 | |||||||||
2010 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | 187 | $ 190 | $ 194 | $ 200 | $ 207 | $ 213 | $ 223 | $ 228 | $ 234 | $ 238 |
IBNR | $ 6 | |||||||||
Cumulative Number of Claims | claim | 21,952 | |||||||||
2011 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 214 | 221 | 224 | 226 | 233 | 244 | 264 | 272 | $ 271 | |
IBNR | $ 3 | |||||||||
Cumulative Number of Claims | claim | 24,589 | |||||||||
2012 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 236 | 242 | 249 | 256 | 256 | 264 | 279 | $ 272 | ||
IBNR | $ 19 | |||||||||
Cumulative Number of Claims | claim | 24,978 | |||||||||
2013 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 246 | 255 | 263 | 267 | 287 | 295 | $ 294 | |||
IBNR | $ 18 | |||||||||
Cumulative Number of Claims | claim | 23,932 | |||||||||
2014 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 294 | 277 | 285 | 297 | 297 | $ 282 | ||||
IBNR | $ 31 | |||||||||
Cumulative Number of Claims | claim | 24,912 | |||||||||
2015 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 286 | 292 | 310 | 311 | $ 296 | |||||
IBNR | $ 37 | |||||||||
Cumulative Number of Claims | claim | 23,305 | |||||||||
2016 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 292 | 294 | 309 | $ 290 | ||||||
IBNR | $ 59 | |||||||||
Cumulative Number of Claims | claim | 17,626 | |||||||||
2017 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 393 | 371 | $ 306 | |||||||
IBNR | $ 133 | |||||||||
Cumulative Number of Claims | claim | 18,176 | |||||||||
2018 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 394 | $ 376 | ||||||||
IBNR | $ 132 | |||||||||
Cumulative Number of Claims | claim | 19,756 | |||||||||
2019 | ||||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expense, net | $ 350 | |||||||||
IBNR | $ 185 | |||||||||
Cumulative Number of Claims | claim | 13,415 |
Claim and Claim Adjustment E_33
Claim and Claim Adjustment Expense Reserves (International - Excluding Hardy - Net Cumulative Paid Claim and Claim Adjustment Expenses) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010 | $ 4,584 | $ 4,285 | $ 4,366 | |||||||
Total net liability for unpaid claim and claim adjustment expenses | 17,885 | 17,965 | 18,070 | $ 18,249 | ||||||
International | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Total net liability for unpaid claim and claim adjustment expenses | 1,628 | 1,524 | ||||||||
Excluding Hardy | International | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 1,816 | |||||||||
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented | 1,076 | |||||||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010 | 52 | |||||||||
Liability for unallocated claim adjustment expenses for accident years presented | 27 | |||||||||
Total net liability for unpaid claim and claim adjustment expenses | 1,155 | |||||||||
Excluding Hardy | 2010 | International | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 178 | 174 | 172 | 169 | $ 160 | $ 151 | $ 137 | $ 122 | $ 99 | $ 49 |
Excluding Hardy | 2011 | International | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 193 | 190 | 186 | 178 | 166 | 152 | 139 | 116 | $ 45 | |
Excluding Hardy | 2012 | International | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 209 | 205 | 196 | 184 | 168 | 148 | 115 | $ 45 | ||
Excluding Hardy | 2013 | International | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 202 | 183 | 173 | 158 | 141 | 114 | $ 50 | |||
Excluding Hardy | 2014 | International | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 207 | 186 | 169 | 151 | 123 | $ 52 | ||||
Excluding Hardy | 2015 | International | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 209 | 186 | 165 | 135 | $ 57 | |||||
Excluding Hardy | 2016 | International | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 184 | 161 | 134 | $ 67 | ||||||
Excluding Hardy | 2017 | International | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 190 | 149 | $ 65 | |||||||
Excluding Hardy | 2018 | International | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 169 | $ 91 | ||||||||
Excluding Hardy | 2019 | International | ||||||||||
Short-Duration Insurance Contracts, Net Cumulative Paid Claim and Claim Adjustment Expenses [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net | $ 75 |
Claim and Claim Adjustment E_34
Claim and Claim Adjustment Expense Reserves (International - Excluding Hardy - Net Strengthening or Releasing of Prior Accident Year Reserves) (Details) - Excluding Hardy - International - USD ($) $ in Millions | 12 Months Ended | 24 Months Ended | 36 Months Ended | 48 Months Ended | 60 Months Ended | 72 Months Ended | 84 Months Ended | 96 Months Ended | 108 Months Ended | 120 Months Ended | ||||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | |
2010 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | $ (3) | $ (4) | $ (6) | $ (7) | $ (6) | $ (10) | $ (5) | $ (6) | $ (4) | $ (51) | ||||||||
2011 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (7) | (3) | (2) | (7) | (11) | (20) | (8) | $ 1 | $ (57) | |||||||||
2012 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (6) | (7) | (7) | 0 | (8) | (15) | $ 7 | $ (36) | ||||||||||
2013 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (9) | (8) | (4) | (20) | (8) | $ 1 | $ (48) | |||||||||||
2014 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 17 | (8) | (12) | 0 | $ 15 | $ 12 | ||||||||||||
2015 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (6) | (18) | (1) | $ 15 | $ (10) | |||||||||||||
2016 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | (2) | (15) | $ 19 | $ 2 | ||||||||||||||
2017 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | 22 | $ 65 | $ 87 | |||||||||||||||
2018 | ||||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||||||||||
Cumulative Number of Claims | $ 18 | $ 18 |
Claim and Claim Adjustment E_35
Claim and Claim Adjustment Expense Reserves (International - Hardy - Net Incurred Claims and Allocated Claim Adjustment Expenses) (Details) - Hardy - International $ in Millions | Dec. 31, 2019USD ($)claim | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) |
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||
Incurred claims and allocated claim adjustment expense, net | $ 1,800 | |||||||
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented | 461 | |||||||
IBNR | 198 | |||||||
2010 | ||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||
Net Claim and Claim Adjustment Expense Reserves at Acquisition | $ 48 | |||||||
Incurred claims and allocated claim adjustment expense, net | 51 | $ 51 | $ 52 | $ 53 | $ 46 | $ 52 | $ 48 | (10) |
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented | 39 | |||||||
IBNR | $ (1) | |||||||
Cumulative Number of Claims | claim | 4,565 | |||||||
2011 | ||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||
Net Claim and Claim Adjustment Expense Reserves at Acquisition | 126 | |||||||
Incurred claims and allocated claim adjustment expense, net | $ 142 | 142 | 139 | 139 | 140 | 136 | 136 | (1) |
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented | 125 | |||||||
IBNR | $ (1) | |||||||
Cumulative Number of Claims | claim | 6,292 | |||||||
2012 | ||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||
Net Claim and Claim Adjustment Expense Reserves at Acquisition | 33 | |||||||
Incurred claims and allocated claim adjustment expense, net | $ 115 | 116 | 113 | 113 | 119 | 112 | 105 | 71 |
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented | $ 104 | |||||||
IBNR | $ 1 | |||||||
Cumulative Number of Claims | claim | 6,950 | |||||||
2013 | ||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||
Incurred claims and allocated claim adjustment expense, net | $ 145 | 144 | 141 | 140 | 138 | 146 | $ 131 | |
IBNR | $ 2 | |||||||
Cumulative Number of Claims | claim | 7,724 | |||||||
2014 | ||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||
Incurred claims and allocated claim adjustment expense, net | $ 172 | 171 | 171 | 177 | 183 | $ 185 | ||
IBNR | $ 0 | |||||||
Cumulative Number of Claims | claim | 8,242 | |||||||
2015 | ||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||
Incurred claims and allocated claim adjustment expense, net | $ 178 | 179 | 179 | 180 | $ 191 | |||
IBNR | $ 1 | |||||||
Cumulative Number of Claims | claim | 9,274 | |||||||
2016 | ||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||
Incurred claims and allocated claim adjustment expense, net | $ 225 | 236 | 247 | $ 229 | ||||
IBNR | $ 18 | |||||||
Cumulative Number of Claims | claim | 10,152 | |||||||
2017 | ||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||
Incurred claims and allocated claim adjustment expense, net | $ 244 | 255 | $ 245 | |||||
IBNR | $ 15 | |||||||
Cumulative Number of Claims | claim | 11,837 | |||||||
2018 | ||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||
Incurred claims and allocated claim adjustment expense, net | $ 305 | $ 273 | ||||||
IBNR | $ 43 | |||||||
Cumulative Number of Claims | claim | 12,646 | |||||||
2019 | ||||||||
Short-duration Insurance Contracts, Net Incurred Claim and Claim Adjustment Expenses [Line Items] | ||||||||
Incurred claims and allocated claim adjustment expense, net | $ 223 | |||||||
IBNR | $ 120 | |||||||
Cumulative Number of Claims | claim | 6,271 |
Claim and Claim Adjustment E_36
Claim and Claim Adjustment Expense Reserves (International - Hardy - Net Cumulative Paid Claim and Claim Adjustment Expenses) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | ||||||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010 | $ 4,584 | $ 4,285 | $ 4,366 | |||||
Total net liability for unpaid claim and claim adjustment expenses | 17,885 | 17,965 | 18,070 | $ 18,249 | ||||
International | ||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | ||||||||
Total net liability for unpaid claim and claim adjustment expenses | 1,628 | 1,524 | ||||||
Hardy | International | ||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | ||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 1,339 | |||||||
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented | 461 | |||||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2010 | 3 | |||||||
Liability for unallocated claim adjustment expenses for accident years presented | 9 | |||||||
Total net liability for unpaid claim and claim adjustment expenses | 473 | |||||||
Hardy | International | 2010 | ||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | ||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 47 | 47 | 49 | 48 | $ 45 | $ 43 | $ 36 | $ 19 |
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented | 39 | |||||||
Hardy | International | 2011 | ||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | ||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 137 | 136 | 134 | 133 | 129 | 124 | 84 | 31 |
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented | 125 | |||||||
Hardy | International | 2012 | ||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | ||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 111 | 110 | 109 | 107 | 109 | 100 | 80 | 14 |
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented | $ 104 | |||||||
Hardy | International | 2013 | ||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | ||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 138 | 134 | 131 | 127 | 121 | 102 | $ 38 | |
Hardy | International | 2014 | ||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | ||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 162 | 157 | 151 | 142 | 123 | $ 56 | ||
Hardy | International | 2015 | ||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | ||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 158 | 145 | 130 | 98 | $ 30 | |||
Hardy | International | 2016 | ||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | ||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 182 | 172 | 145 | $ 63 | ||||
Hardy | International | 2017 | ||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | ||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 184 | 151 | $ 53 | |||||
Hardy | International | 2018 | ||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | ||||||||
Cumulative paid claims and allocated claim adjustment expense, net | 176 | $ 55 | ||||||
Hardy | International | 2019 | ||||||||
Short Duration Contracts Net Cumulative Paid Claim Adjustment Expenses [Line Items] | ||||||||
Cumulative paid claims and allocated claim adjustment expense, net | $ 44 |
Claim and Claim Adjustment E_37
Claim and Claim Adjustment Expense Reserves (International - Hardy - Net Strengthening or Releasing of Prior Accident Year Reserves) (Details) - International - Hardy - USD ($) $ in Millions | 12 Months Ended | 24 Months Ended | 36 Months Ended | 48 Months Ended | 60 Months Ended | 72 Months Ended | 84 Months Ended | 96 Months Ended | 108 Months Ended | 120 Months Ended | |||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | |
2010 | |||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||||||||||||||
Cumulative Number of Claims | $ 0 | $ (1) | $ (1) | $ 7 | $ (6) | $ 4 | $ 9 | $ (9) | $ 3 | ||||||||
2011 | |||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||||||||||||||
Cumulative Number of Claims | 0 | 3 | 0 | (1) | 4 | 0 | 11 | $ (1) | $ 16 | ||||||||
2012 | |||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||||||||||||||
Cumulative Number of Claims | (1) | 3 | 0 | (6) | 7 | 7 | $ 1 | $ 11 | |||||||||
2013 | |||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||||||||||||||
Cumulative Number of Claims | 1 | 3 | 1 | 2 | (8) | $ 15 | $ 14 | ||||||||||
2014 | |||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||||||||||||||
Cumulative Number of Claims | 1 | 0 | (6) | (6) | $ (2) | $ (13) | |||||||||||
2015 | |||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||||||||||||||
Cumulative Number of Claims | (1) | 0 | (1) | $ (11) | $ (13) | ||||||||||||
2016 | |||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||||||||||||||
Cumulative Number of Claims | (11) | (11) | $ 18 | $ (4) | |||||||||||||
2017 | |||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||||||||||||||
Cumulative Number of Claims | (11) | $ 10 | $ (1) | ||||||||||||||
2018 | |||||||||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||||||||||||||
Cumulative Number of Claims | $ 32 | $ 32 |
Claim and Claim Adjustment E_38
Claim and Claim Adjustment Expense Reserves (Historical Claims Duration) (Details) | Dec. 31, 2019 |
Medical Professional Liability | Specialty | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 3.80% |
Year 2 | 20.00% |
Year 3 | 24.30% |
Year 4 | 19.40% |
Year 5 | 12.40% |
Year 6 | 7.80% |
Year 7 | 5.10% |
Year 8 | 3.10% |
Year 9 | 1.10% |
Year 10 | 0.80% |
Total | 97.80% |
Other Professional Liability and Management Liability | Specialty | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 6.60% |
Year 2 | 22.60% |
Year 3 | 21.70% |
Year 4 | 16.90% |
Year 5 | 10.50% |
Year 6 | 6.00% |
Year 7 | 4.90% |
Year 8 | 3.30% |
Year 9 | 3.80% |
Year 10 | 0.70% |
Total | 97.00% |
Surety | Specialty | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 20.00% |
Year 2 | 44.50% |
Year 3 | 21.00% |
Year 4 | 4.40% |
Year 5 | 2.20% |
Year 6 | 0.90% |
Year 7 | (2.50%) |
Year 8 | (1.10%) |
Year 9 | 0.00% |
Year 10 | 1.60% |
Total | 91.00% |
Commercial Auto | Commercial | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 28.60% |
Year 2 | 24.00% |
Year 3 | 18.60% |
Year 4 | 14.30% |
Year 5 | 9.40% |
Year 6 | 3.20% |
Year 7 | 1.50% |
Year 8 | 0.40% |
Year 9 | 0.00% |
Year 10 | 0.00% |
Total | 100.00% |
General Liability | Commercial | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 4.30% |
Year 2 | 15.80% |
Year 3 | 19.00% |
Year 4 | 20.10% |
Year 5 | 15.70% |
Year 6 | 8.70% |
Year 7 | 6.00% |
Year 8 | 2.50% |
Year 9 | 1.50% |
Year 10 | 1.60% |
Total | 95.20% |
Workers' Compensation | Commercial | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 14.10% |
Year 2 | 21.40% |
Year 3 | 13.90% |
Year 4 | 10.30% |
Year 5 | 7.00% |
Year 6 | 3.70% |
Year 7 | 2.90% |
Year 8 | 2.70% |
Year 9 | 1.40% |
Year 10 | 0.80% |
Total | 78.20% |
Excluding Hardy | International | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 20.80% |
Year 2 | 25.70% |
Year 3 | 11.00% |
Year 4 | 7.30% |
Year 5 | 6.80% |
Year 6 | 5.30% |
Year 7 | 5.00% |
Year 8 | 1.70% |
Year 9 | 1.20% |
Year 10 | 2.10% |
Total | 86.90% |
Hardy | International | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 23.30% |
Year 2 | 39.60% |
Year 3 | 8.70% |
Year 4 | 5.60% |
Year 5 | 4.50% |
Year 6 | 2.50% |
Year 7 | 2.80% |
Total | 87.00% |
Claim and Claim Adjustment E_39
Claim and Claim Adjustment Expense Reserves (Impact of Loss Portfolio Transfer on the Consolidated Statement of Operations) (Details) - Asbestos and Environmental Reserves - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Net A&EP adverse development before consideration of LPT | $ 150 | $ 178 | $ 60 |
Provision for uncollectible third-party reinsurance on A&EP | (25) | (16) | 0 |
Total additional amounts ceded under LPT | 125 | 162 | 60 |
Retroactive reinsurance benefit recognized | (107) | (114) | (68) |
Pretax impact of deferred retroactive reinsurance | $ 18 | $ 48 | $ (8) |
Claim and Claim Adjustment E_40
Claim and Claim Adjustment Expense Reserves (Life & Group Policyholder Reserves) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2019 | |
Liability for Claims and Claims Adjustment Expense [Abstract] | |||
Liability for unpaid claims and claims adjustment expense, period increase (decrease) | $ 56 | $ 31 | |
Premium deficiency and future policy benefit | $ 216 | $ 216 |
Legal Proceedings, Contingenc_2
Legal Proceedings, Contingencies and Guarantees (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Guarantee Obligations | ||
Legal Proceedings, Commitments and Contingencies, and Guarantees [Line Items] | ||
Guarantor obligations, maximum exposure, undiscounted | $ 1,700 | |
Guarantee and Indemnification | ||
Legal Proceedings, Commitments and Contingencies, and Guarantees [Line Items] | ||
Guarantor obligations, current carrying value | $ 5 | $ 5 |
Reinsurance (Narrative) (Detail
Reinsurance (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Ceded Credit Risk [Line Items] | |||
Funds held under reinsurance agreements, liability | $ 3,200 | $ 3,200 | |
Reinsurance recoveries reported in insurance claims and policyholders' benefits reported on the Consolidated Statement of Operations | 2,733 | 2,836 | $ 3,085 |
Subsidiaries of Berkshire Hathaway Group | |||
Ceded Credit Risk [Line Items] | |||
Largest recoverable from single reinsurer | 2,000 | ||
Palo Verde Insurance Company | |||
Ceded Credit Risk [Line Items] | |||
Largest recoverable from single reinsurer | 289 | ||
Subsidiaries of Wilton Re | |||
Ceded Credit Risk [Line Items] | |||
Largest recoverable from single reinsurer | 226 | ||
Significant Captive Program | |||
Ceded Credit Risk [Line Items] | |||
Direct and ceded earned premiums | 3,578 | 3,740 | 3,864 |
Reinsurance recoveries reported in insurance claims and policyholders' benefits reported on the Consolidated Statement of Operations | $ 2,080 | $ 1,927 | $ 2,541 |
Reinsurance (Components of Rein
Reinsurance (Components of Reinsurance Receivables) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Reinsurance receivables related to insurance reserves | ||||
Ceded claim and claim adjustment expenses | $ 3,835 | $ 4,019 | $ 3,934 | $ 4,094 |
Ceded future policy benefits | 226 | 233 | ||
Reinsurance receivables related to paid losses | 143 | 203 | ||
Reinsurance receivables | 4,204 | 4,455 | ||
Allowance for uncollectible reinsurance | (25) | (29) | ||
Reinsurance receivables, net of allowance for uncollectible reinsurance | $ 4,179 | $ 4,426 |
Reinsurance (Components of Earn
Reinsurance (Components of Earned Premiums) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effects of Reinsurance [Line Items] | |||
Direct premiums earned | $ 11,491 | $ 11,337 | $ 10,936 |
Assumed premiums earned | 338 | 355 | 367 |
Ceded premiums earned | 4,401 | 4,380 | 4,315 |
Net earned premiums | 7,428 | 7,312 | 6,988 |
Property and Casualty Insurance | |||
Effects of Reinsurance [Line Items] | |||
Direct premiums earned | 11,021 | 10,857 | 10,447 |
Assumed premiums earned | 288 | 305 | 317 |
Ceded premiums earned | 4,401 | 4,380 | 4,315 |
Net earned premiums | 6,908 | 6,782 | 6,449 |
Long term care Insurance Product Line | |||
Effects of Reinsurance [Line Items] | |||
Direct premiums earned | 470 | 480 | 489 |
Assumed premiums earned | 50 | 50 | 50 |
Ceded premiums earned | 0 | 0 | 0 |
Net earned premiums | $ 520 | $ 530 | $ 539 |
Percentage of assumed premiums earned to net premiums earned | |||
Effects of Reinsurance [Line Items] | |||
Percentage of assumed premium earned to premium earned net | 4.60% | 4.90% | 5.30% |
Percentage of assumed premiums earned to net premiums earned | Property and Casualty Insurance | |||
Effects of Reinsurance [Line Items] | |||
Percentage of assumed premium earned to premium earned net | 4.20% | 4.50% | 4.90% |
Percentage of assumed premiums earned to net premiums earned | Long term care Insurance Product Line | |||
Effects of Reinsurance [Line Items] | |||
Percentage of assumed premium earned to premium earned net | 9.60% | 9.40% | 9.30% |
Reinsurance (Components of Writ
Reinsurance (Components of Written Premiums) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effects of Reinsurance [Line Items] | |||
Direct premiums written | $ 11,894 | $ 11,568 | $ 11,141 |
Assumed premiums written | 331 | 360 | 377 |
Ceded premiums written | 4,569 | 4,583 | 4,449 |
Net written premiums | 7,656 | 7,345 | 7,069 |
Property and Casualty Insurance | |||
Effects of Reinsurance [Line Items] | |||
Direct premiums written | 11,421 | 11,094 | 10,655 |
Assumed premiums written | 281 | 310 | 327 |
Ceded premiums written | 4,569 | 4,583 | 4,449 |
Net written premiums | 7,133 | 6,821 | 6,533 |
Long term care Insurance Product Line | |||
Effects of Reinsurance [Line Items] | |||
Direct premiums written | 473 | 474 | 486 |
Assumed premiums written | 50 | 50 | 50 |
Ceded premiums written | 0 | 0 | 0 |
Net written premiums | $ 523 | $ 524 | $ 536 |
Percentage of assumed premiums written to net premiums written | |||
Effects of Reinsurance [Line Items] | |||
Percentage of assumed premium written to premium written net | 4.30% | 4.90% | 5.30% |
Percentage of assumed premiums written to net premiums written | Property and Casualty Insurance | |||
Effects of Reinsurance [Line Items] | |||
Percentage of assumed premium written to premium written net | 3.90% | 4.50% | 5.00% |
Percentage of assumed premiums written to net premiums written | Long term care Insurance Product Line | |||
Effects of Reinsurance [Line Items] | |||
Percentage of assumed premium written to premium written net | 9.60% | 9.50% | 9.30% |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Debt Disclosure [Abstract] | |||
Federal Home Loan Bank stock | $ 5,000,000 | $ 5,000,000 | |
Federal Home Loan Bank, advances, general debt obligations, maximum amount available | 111,000,000 | 111,000,000 | |
Federal Home Loan Bank, advances, branch of FHLB Bank, amount of advances | $ 0 | 0 | $ 0 |
Debt Instrument, Term | 5 years | ||
Line of credit, current borrowing capacity | $ 250,000,000 | 250,000,000 | |
Additional borrowing capacity available | $ 100,000,000 | $ 100,000,000 | |
Number of extension options | 2 | 2 | |
Extension term | 1 year | ||
Line of credit, minimum net worth required for compliance | $ 8,700,000,000 | $ 8,700,000,000 | |
Line of credit, amount outstanding | $ 0 | $ 0 | $ 0 |
Debt (Schedule of debt instrume
Debt (Schedule of debt instruments) (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Long term debt | $ 2,679,000,000 | $ 2,680,000,000 |
Total | $ 2,679,000,000 | 2,680,000,000 |
5.875%, face amount of $500, due August 15, 2020(1) | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 5.875% | |
Face amount | $ 500,000,000 | |
Long term debt | $ 0 | 499,000,000 |
5.750%, face amount of $400, due August 15, 2021 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 5.75% | |
Face amount | $ 400,000,000 | |
Long term debt | $ 399,000,000 | 399,000,000 |
3.950%, face amount of $550, due May 15, 2024 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 3.95% | |
Face amount | $ 550,000,000 | |
Long term debt | $ 548,000,000 | 547,000,000 |
4.500%, face amount of $500, due March 1, 2026 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.50% | |
Face amount | $ 500,000,000 | |
Long term debt | $ 498,000,000 | 498,000,000 |
3.450%, face amount of $500, due August 15, 2027 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 3.45% | |
Face amount | $ 500,000,000 | |
Long term debt | $ 496,000,000 | 495,000,000 |
3.900%, face amount of $500, due May 1, 2029 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 3.90% | |
Face amount | $ 500,000,000 | |
Long term debt | $ 496,000,000 | 0 |
Debenture of CNAF, 7.250%, face amount of $243, due November 15, 2023 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 7.25% | |
Face amount | $ 243,000,000 | |
Long term debt | $ 242,000,000 | $ 242,000,000 |
Debt (Maturity of debt) (Detail
Debt (Maturity of debt) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
2020 | $ 0 | |
2021 | 400 | |
2022 | 0 | |
2023 | 243 | |
2024 | 550 | |
Thereafter | 1,500 | |
Less discount | (14) | |
Total | $ 2,679 | $ 2,680 |
Benefit Plans (Narrative) (Deta
Benefit Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Actuarial (gain) loss | $ 261 | $ (187) | |
Assumptions used in calculating assumed health care cost trend rate | 4.00% | ||
Percentage of limited partnerships employing hedge fund strategies focused on fixed income and equity investments | 61.00% | 65.00% | |
Defined contribution plan, maximum annual contributions per employee, percent | 50.00% | ||
Defined contribution plan, employer matching contribution, percent of match | 70.00% | ||
Defined contribution plan, employer matching contribution, percent of employees' gross pay | 6.00% | ||
Defined contribution plan, employers matching contribution, vesting period in years | 5 years | ||
Benefit expense for the Company's savings plan | $ 71 | $ 71 | $ 76 |
Additional Contribution, Management Discretion | |||
Defined contribution plan, employer matching contribution, percent of match | 80.00% | ||
Defined contribution plan, employer matching contribution, percent of employees' gross pay | 6.00% | ||
Defined contribution plan, employer discretionary contribution amount, percent | 2.00% | ||
First Year of Employment | |||
Defined contribution plan, employer matching contribution, percent of match | 35.00% | ||
Defined contribution plan, employer matching contribution, percent of employees' gross pay | 6.00% | ||
Pension Benefits | |||
Defined benefit plan, accumulated benefit obligation | $ 2,661 | 2,465 | |
Actuarial (gain) loss | 261 | (187) | |
Total non-service cost (benefit) | (3) | $ (23) | $ (7) |
Future capital call commitments for limited partnership investments | $ 108 | ||
Percentage of limited partnerships employing hedge fund strategies focused on fixed income and equity investments | 79.00% | 81.00% | |
Limited partnership equity related hedge fund strategy plan assets | 62.00% | ||
Limited partnership hedge fund multi strategy plan assets | 31.00% | ||
Limited partnership hedge fund strategy distressed investments plan assets | 7.00% | ||
Defined benefit plan, expected future employer contributions, next fiscal year | $ 8 | ||
Postretirement Benefits | |||
Actuarial (gain) loss | $ 1 | $ 0 | |
Defined benefit plan, health care cost trend rate assumed for next fiscal year | 4.00% | 4.00% | 4.00% |
Defined benefit plan, expected future employer contributions, next fiscal year | $ 1 | ||
Minimum | |||
Defined benefit plan, plan assets, target allocation, percentage | 40.00% | ||
Company contribution of eligible compensation, depending on age, percent | 3.00% | ||
Maximum | |||
Defined benefit plan, plan assets, target allocation, percentage | 60.00% | ||
Company contribution of eligible compensation, depending on age, percent | 5.00% | ||
Insurance Claims and Policyholder's Benefits, Including Policyholder's Dividends | Pension Benefits | |||
Total non-service cost (benefit) | $ 1 | $ 8 | $ 2 |
Other Expense | Pension Benefits | |||
Total non-service cost (benefit) | $ 2 | $ 15 | $ 5 |
Benefit Plans (Funded Status) (
Benefit Plans (Funded Status) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Actuarial (gain) loss | $ 261 | $ (187) | |
Amounts recognized on the Consolidated Balance Sheets as of December 31: | |||
Other assets | 2,285 | 2,025 | |
Pension Benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Balance at beginning of period | 2,466 | 2,749 | |
Service cost | 0 | 0 | $ 0 |
Interest cost | 100 | 93 | 103 |
Participants' contributions | 0 | 0 | |
Actuarial (gain) loss | 261 | (187) | |
Benefits paid | (169) | (166) | |
Foreign currency translation and other | 3 | (7) | |
Settlements | 0 | (16) | |
Balance at end of period | 2,661 | 2,466 | 2,749 |
Change in plan assets: | |||
Balance beginning of period | 2,025 | 2,261 | |
Actual return on plan assets | 292 | (69) | |
Company contributions | 134 | 23 | |
Participants' contributions | 0 | 0 | |
Benefits paid | (169) | (166) | |
Foreign currency translation and other | 3 | (8) | |
Settlements | 0 | (16) | |
Balance end of period | 2,285 | 2,025 | 2,261 |
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | |||
Funded status | (376) | (441) | |
Amounts recognized on the Consolidated Balance Sheets as of December 31: | |||
Other assets | 5 | 9 | |
Other liabilities | (381) | (450) | |
Net amount recognized | (376) | (441) | |
Amounts recognized in Accumulated other comprehensive income, not yet recognized in net periodic cost (benefit): | |||
Prior service credit | 0 | 0 | |
Net actuarial (gain) loss | 1,056 | 984 | |
Net amount recognized | 1,056 | 984 | |
Postretirement Benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Balance at beginning of period | 9 | 11 | |
Service cost | 0 | 0 | |
Interest cost | 0 | 0 | |
Participants' contributions | 4 | 3 | |
Actuarial (gain) loss | 1 | 0 | |
Benefits paid | (6) | (5) | |
Foreign currency translation and other | 0 | 0 | |
Settlements | 0 | 0 | |
Balance at end of period | 8 | 9 | 11 |
Change in plan assets: | |||
Balance beginning of period | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Company contributions | 2 | 2 | |
Participants' contributions | 4 | 3 | |
Benefits paid | (6) | (5) | |
Foreign currency translation and other | 0 | 0 | |
Settlements | 0 | 0 | |
Balance end of period | 0 | 0 | $ 0 |
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | |||
Funded status | (8) | (9) | |
Amounts recognized on the Consolidated Balance Sheets as of December 31: | |||
Other assets | 0 | 0 | |
Other liabilities | (8) | (9) | |
Net amount recognized | (8) | (9) | |
Amounts recognized in Accumulated other comprehensive income, not yet recognized in net periodic cost (benefit): | |||
Prior service credit | 0 | 0 | |
Net actuarial (gain) loss | (2) | (3) | |
Net amount recognized | $ (2) | $ (3) |
Benefit Plans (Components of ne
Benefit Plans (Components of net periodic cost (benefit)) (Details) - Pension Benefits - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 0 | $ 0 | $ 0 |
Interest cost on projected benefit obligation | 100 | 93 | 103 |
Expected return on plan assets | (142) | (159) | (154) |
Amortization of net actuarial (gain) loss | 39 | 37 | 35 |
Settlement loss | 0 | 6 | 9 |
Total non-service cost (benefit) | (3) | (23) | (7) |
Total net periodic pension cost (benefit) | $ (3) | $ (23) | $ (7) |
Benefit Plans (Schedule of amou
Benefit Plans (Schedule of amounts recognized in Other comprehensive income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||
Amounts arising during the period | $ (112) | $ (41) | $ (31) |
Settlement | 0 | 6 | 9 |
Reclassification adjustment relating to prior service credit | 0 | (2) | (2) |
Reclassification adjustment relating to actuarial loss | 39 | 36 | 35 |
Total increase (decrease) in Other comprehensive income | $ (73) | $ (1) | $ 11 |
Benefit Plans (Actuarial Assump
Benefit Plans (Actuarial Assumptions for Benefit Obligations) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Interest crediting rate | 5.00% | 5.00% | 5.00% |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.15% | 4.25% | |
Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.30% | 3.55% |
Benefit Plans (Actuarial Assu_2
Benefit Plans (Actuarial Assumptions for Net Cost or Benefit) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Interest crediting rate | 5.00% | 5.00% | 5.00% |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.25% | 3.55% | 3.95% |
Expected long term rate of return | 7.50% | 7.50% | 7.50% |
Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.55% | 2.75% | 2.75% |
Benefit Plans (Fair Value of Pl
Benefit Plans (Fair Value of Plan Assets Measured on a Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Total limited partnerships measured at net asset value | $ 813 | $ 789 |
Other assets | 2,285 | 2,025 |
Corporate and other bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 597 | 482 |
Corporate and other bonds | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Corporate and other bonds | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 587 | 472 |
Corporate and other bonds | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 10 | 10 |
States, municipalities and political subdivisions | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 51 | 58 |
States, municipalities and political subdivisions | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
States, municipalities and political subdivisions | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 51 | 58 |
States, municipalities and political subdivisions | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Asset-backed | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 154 | 165 |
Asset-backed | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Asset-backed | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 154 | 165 |
Asset-backed | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Total fixed maturity securities trading | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 802 | 705 |
Total fixed maturity securities trading | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Total fixed maturity securities trading | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 792 | 695 |
Total fixed maturity securities trading | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 10 | 10 |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 586 | 441 |
Equity securities | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 458 | 331 |
Equity securities | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 128 | 110 |
Equity securities | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Short term investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 62 | 81 |
Short term investments | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 55 | 27 |
Short term investments | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 7 | 54 |
Short term investments | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Other assets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 9 | 9 |
Other assets | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Other assets | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 9 | 9 |
Other assets | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 13 | 0 |
Cash | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 13 | 0 |
Cash | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Cash | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Total assets measured at fair value | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,472 | 1,236 |
Total assets measured at fair value | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 526 | 358 |
Total assets measured at fair value | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 936 | 868 |
Total assets measured at fair value | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 10 | $ 10 |
Benefit Plans (Estimated Future
Benefit Plans (Estimated Future Minimum Benefit Payments to Participants) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | $ 178 |
2021 | 176 |
2022 | 180 |
2023 | 178 |
2024 | 178 |
2025-2029 | 841 |
Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 1 |
2021 | 1 |
2022 | 1 |
2023 | 1 |
2024 | 1 |
2025-2029 | $ 2 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized (in shares) | 11,000,000 | ||
Number of shares available for grant (in shares) | 2,300,000 | ||
Measurement period of specific annual performance goals, in years | 1 year | 3 years | |
Cliff vesting period following date of grant | 2 years | ||
Allocated share-based compensation expense | $ 34 | $ 32 | $ 36 |
Tax benefit from compensation expense | 8 | 8 | 18 |
Compensation cost not yet recognized | $ 38 | ||
Compensation cost not yet recognized, period for recognition | 1 year 8 months 12 days | ||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, vested in period, fair value | $ 31 | $ 16 | $ 34 |
Weighted average grant date fair value of awards granted (in usd per share) | $ 43.86 | $ 51.64 | $ 44.20 |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 0.00% | ||
Award vesting period | 1 year | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 200.00% | ||
Award vesting period | 3 years |
Stock-Based Compensation (Restr
Stock-Based Compensation (Restricted shares, performance-based restricted share units and performance share unit activity) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Awards | |||
Balance as of January 1, 2019 (in shares) | 2,204,148 | ||
Awards granted (in shares) | 1,051,053 | ||
Awards vested (in shares) | (801,504) | ||
Awards forfeited, canceled or expired (in shares) | (379,425) | ||
Performance-based adjustment (in shares) | 40,914 | ||
Balance as of December 31, 2019 (in shares) | 2,115,186 | 2,204,148 | |
Weighted Average Grant Date Fair Value | |||
Balance as of January 1, 2019 (in dollars per share) | $ 43.98 | ||
Awards granted (in dollars per share) | 43.86 | $ 51.64 | $ 44.20 |
Awards vested (in dollars per share) | 36.81 | ||
Awards forfeited, canceled or expired (in dollars per share) | 45.98 | ||
Performance-based adjustment (in dollars per share) | 44.86 | ||
Balance as of December 31, 2019 (in dollars per share) | $ 46.25 | $ 43.98 |
Other Intangible Assets (Summar
Other Intangible Assets (Summary of Other Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Other Intangible Assets [Abstract] | ||
Finite-lived intangible assets: | $ 18 | $ 16 |
Indefinite-lived intangible assets: | 62 | 61 |
Total other intangible assets | 80 | 77 |
Accumulated Amortization | 11 | 9 |
Syndicate capacity | ||
Schedule of Other Intangible Assets [Abstract] | ||
Indefinite-lived intangible assets: | 46 | 45 |
Agency force | ||
Schedule of Other Intangible Assets [Abstract] | ||
Indefinite-lived intangible assets: | $ 16 | 16 |
Trade name | ||
Schedule of Other Intangible Assets [Abstract] | ||
Economic Useful Life | 8 years | |
Finite-lived intangible assets: | $ 7 | 6 |
Accumulated Amortization | $ 6 | 5 |
Distribution channel | ||
Schedule of Other Intangible Assets [Abstract] | ||
Economic Useful Life | 15 years | |
Finite-lived intangible assets: | $ 11 | 10 |
Accumulated Amortization | $ 5 | $ 4 |
Schedule of Other Intangible As
Schedule of Other Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
2020 | $ 1 | ||
2021 | 1 | ||
2022 | 1 | ||
2023 | 1 | ||
2024 | 1 | ||
Other Intangible Assets | International | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense included in other operating expenses | $ 1 | $ 1 | $ 2 |
Leases (Narrative) (Detail)
Leases (Narrative) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Leases, Operating [Abstract] | |||
Lease expense | $ 55 | $ 62 | $ 66 |
Operating lease, cost | 37 | ||
Variable lease, cost | 18 | ||
Operating lease, payments | 34 | ||
Right-of-use asset obtained in exchange for operating lease liability | $ 12 |
Leases (Assets and Liabilities)
Leases (Assets and Liabilities) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Operating lease ROU assets | $ 220 |
Operating lease liabilities | $ 301 |
Leases (Maturities) (Details)
Leases (Maturities) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 38 |
2021 | 43 |
2022 | 40 |
2023 | 34 |
2024 | 29 |
Thereafter | 184 |
Total | 368 |
Less: Discount | (67) |
Total operating lease liabilities | $ 301 |
Leases (Lease Term and Discount
Leases (Lease Term and Discount Rate) (Details) | Dec. 31, 2019 |
Leases [Abstract] | |
Weighted average remaining lease term | 10 years 9 months 18 days |
Weighted average discount rate | 3.40% |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Leases, Operating [Abstract] | |
2019 | $ 35 |
2020 | 39 |
2021 | 41 |
2022 | 38 |
2023 | 32 |
Thereafter | 200 |
Total | $ 385 |
Stockholders' Equity and Stat_3
Stockholders' Equity and Statutory Accounting Practices (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Stockholders' Equity and Statutory Accounting Practices [Abstract] | ||
Increase in statutory capital and surplus due to prescribed practice | $ 91 | $ 88 |
Statutory amount available for dividend payment before consideration of statutory dividends paid in the preceding twelve months | 1,078 | |
Dividends paid in the preceding twelve months | $ 1,065 | |
Capital required for capital adequacy to risk weighted assets | 291.00% | 266.00% |
Stockholders' Equity and Stat_4
Stockholders' Equity and Statutory Accounting Practices Combined statutory capital and surplus and net income (loss) (Details) - Combined Continental Casualty Companies - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statutory Accounting Practices [Line Items] | |||
Statutory Capital and Surplus | $ 10,787 | $ 10,411 | |
Statutory Net Income (Loss) | $ 1,062 | $ 1,405 | $ 1,029 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) by Component Schedule of Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Millions | Jan. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Total stockholder's equity at beginning of period | $ 12,244 | $ 11,217 | $ 12,244 |
Other comprehensive income (loss) before reclassifications | 894 | (922) | |
Amounts reclassified from accumulated other comprehensive income (loss) net of tax | (35) | (28) | |
Other comprehensive income (loss) after tax (expense) benefit | 929 | (894) | |
Total stockholder's equity at end of period | 12,215 | 11,217 | |
Reclassification from AOCI, tax | 10 | 8 | |
Tax (expense) benefit on other comprehensive income (loss) | (240) | 216 | |
Accumulated other comprehensive income (loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Total stockholder's equity at beginning of period | 32 | (878) | 32 |
Cumulative effect adjustments from changes in accounting guidance, net of tax | (16) | ||
Total stockholder's equity at end of period | 16 | 51 | (878) |
Net unrealized gains (losses) on investments with OTTI losses | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Total stockholder's equity at beginning of period | 25 | 16 | 25 |
Other comprehensive income (loss) before reclassifications | (13) | (7) | |
Amounts reclassified from accumulated other comprehensive income (loss) net of tax | (12) | 7 | |
Other comprehensive income (loss) after tax (expense) benefit | (1) | (14) | |
Total stockholder's equity at end of period | 30 | 15 | 16 |
Reclassification from AOCI, tax | 3 | (2) | |
Tax (expense) benefit on other comprehensive income (loss) | 0 | 4 | |
Net unrealized gains (losses) on other investments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Total stockholder's equity at beginning of period | 750 | 61 | 750 |
Other comprehensive income (loss) before reclassifications | 957 | (801) | |
Amounts reclassified from accumulated other comprehensive income (loss) net of tax | 8 | (3) | |
Other comprehensive income (loss) after tax (expense) benefit | 949 | (798) | |
Total stockholder's equity at end of period | 859 | 1,010 | 61 |
Reclassification from AOCI, tax | (1) | 2 | |
Tax (expense) benefit on other comprehensive income (loss) | (255) | 211 | |
Pension and postretirement benefits | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Total stockholder's equity at beginning of period | (645) | (775) | (645) |
Other comprehensive income (loss) before reclassifications | (89) | (32) | |
Amounts reclassified from accumulated other comprehensive income (loss) net of tax | (31) | (32) | |
Other comprehensive income (loss) after tax (expense) benefit | (58) | 0 | |
Total stockholder's equity at end of period | (775) | (833) | (775) |
Reclassification from AOCI, tax | 8 | 8 | |
Tax (expense) benefit on other comprehensive income (loss) | 15 | 1 | |
Cumulative foreign currency translation adjustment | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Total stockholder's equity at beginning of period | (98) | (180) | (98) |
Other comprehensive income (loss) before reclassifications | 39 | (82) | |
Amounts reclassified from accumulated other comprehensive income (loss) net of tax | 0 | 0 | |
Other comprehensive income (loss) after tax (expense) benefit | 39 | (82) | |
Total stockholder's equity at end of period | (98) | (141) | (180) |
Reclassification from AOCI, tax | 0 | 0 | |
Tax (expense) benefit on other comprehensive income (loss) | $ 0 | $ 0 | |
ASU 2018-02 | Accumulated other comprehensive income (loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Cumulative effect adjustments from changes in accounting guidance, net of tax | 12 | ||
ASU 2018-02 | Net unrealized gains (losses) on investments with OTTI losses | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Cumulative effect adjustments from changes in accounting guidance, net of tax | 5 | ||
ASU 2018-02 | Net unrealized gains (losses) on other investments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Cumulative effect adjustments from changes in accounting guidance, net of tax | 137 | ||
ASU 2018-02 | Pension and postretirement benefits | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Cumulative effect adjustments from changes in accounting guidance, net of tax | (130) | ||
ASU 2018-02 | Cumulative foreign currency translation adjustment | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Cumulative effect adjustments from changes in accounting guidance, net of tax | 0 | ||
ASU 2016-01 | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Cumulative effect adjustments from changes in accounting guidance, tax | 8 | ||
ASU 2016-01 | Accumulated other comprehensive income (loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Cumulative effect adjustments from changes in accounting guidance, net of tax | (28) | ||
ASU 2016-01 | Net unrealized gains (losses) on investments with OTTI losses | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Cumulative effect adjustments from changes in accounting guidance, net of tax | 0 | ||
Cumulative effect adjustments from changes in accounting guidance, tax | 0 | ||
ASU 2016-01 | Net unrealized gains (losses) on other investments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Cumulative effect adjustments from changes in accounting guidance, net of tax | (28) | ||
Cumulative effect adjustments from changes in accounting guidance, tax | 8 | ||
ASU 2016-01 | Pension and postretirement benefits | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Cumulative effect adjustments from changes in accounting guidance, net of tax | 0 | ||
Cumulative effect adjustments from changes in accounting guidance, tax | 0 | ||
ASU 2016-01 | Cumulative foreign currency translation adjustment | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Cumulative effect adjustments from changes in accounting guidance, net of tax | 0 | ||
Cumulative effect adjustments from changes in accounting guidance, tax | $ 0 |
Business Segments (Narrative) (
Business Segments (Narrative) (Details) - segment | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Percentage of direct foreign written premiums | 8.80% | 9.30% | 7.70% |
Core Segments - Specialty, Commercial and International | |||
Segment Reporting Information [Line Items] | |||
Number of operating segments | 3 | ||
Non-Core Segments - Life & Group and Corporate & Other | |||
Segment Reporting Information [Line Items] | |||
Number of operating segments | 2 |
Business Segments (Income State
Business Segments (Income Statement Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Net written premiums | $ 7,656 | $ 7,345 | $ 7,069 |
Operating revenues | |||
Net earned premiums | 7,428 | 7,312 | 6,988 |
Net investment income | 2,118 | 1,817 | 2,034 |
Non-insurance warranty revenue | 1,161 | 1,007 | 390 |
Other revenues | 31 | 50 | 37 |
Total operating revenues | 10,738 | 10,186 | 9,449 |
Claims, Benefits and Expenses | |||
Net incurred claims and benefits | 5,783 | 5,547 | 5,288 |
Policyholders’ dividends | 23 | 25 | 22 |
Amortization of deferred acquisition costs | 1,383 | 1,335 | 1,233 |
Non-insurance warranty expense | 1,082 | 923 | 299 |
Other insurance related expenses | 1,038 | 1,039 | 1,098 |
Other expenses | 235 | 301 | 292 |
Total claims, benefits and expenses | 9,544 | 9,170 | 8,232 |
Core income (loss) before income tax | 1,194 | 1,016 | 1,217 |
Income tax (expense) benefit on core income (loss) | (215) | (171) | (298) |
Core income (loss) | 979 | 845 | 919 |
Net investment gains (losses) | 29 | (52) | 93 |
Income tax (expense) benefit on net investment gains (losses) | (8) | 14 | (30) |
Net investment gains (losses), after tax | 21 | (38) | 63 |
Net deferred tax asset remeasurement | 6 | (83) | |
Net income | 1,000 | 813 | 899 |
Operating Segments | Specialty | |||
Segment Reporting Information [Line Items] | |||
Net written premiums | 2,848 | 2,744 | 2,731 |
Operating revenues | |||
Net earned premiums | 2,773 | 2,732 | 2,712 |
Net investment income | 556 | 439 | 522 |
Non-insurance warranty revenue | 1,161 | 1,007 | 390 |
Other revenues | 1 | 2 | 1 |
Total operating revenues | 4,491 | 4,180 | 3,625 |
Claims, Benefits and Expenses | |||
Net incurred claims and benefits | 1,595 | 1,526 | 1,533 |
Policyholders’ dividends | 5 | 5 | 4 |
Amortization of deferred acquisition costs | 610 | 599 | 590 |
Non-insurance warranty expense | 1,082 | 923 | 299 |
Other insurance related expenses | 292 | 279 | 279 |
Other expenses | 48 | 46 | 43 |
Total claims, benefits and expenses | 3,632 | 3,378 | 2,748 |
Core income (loss) before income tax | 859 | 802 | 877 |
Income tax (expense) benefit on core income (loss) | (188) | (173) | (295) |
Core income (loss) | 671 | 629 | 582 |
Operating Segments | Commercial | |||
Segment Reporting Information [Line Items] | |||
Net written premiums | 3,315 | 3,060 | 2,922 |
Operating revenues | |||
Net earned premiums | 3,162 | 3,050 | 2,881 |
Net investment income | 654 | 500 | 658 |
Non-insurance warranty revenue | 0 | 0 | 0 |
Other revenues | 29 | 28 | 32 |
Total operating revenues | 3,845 | 3,578 | 3,571 |
Claims, Benefits and Expenses | |||
Net incurred claims and benefits | 2,130 | 2,053 | 1,930 |
Policyholders’ dividends | 18 | 20 | 18 |
Amortization of deferred acquisition costs | 537 | 505 | 481 |
Non-insurance warranty expense | 0 | 0 | 0 |
Other insurance related expenses | 505 | 505 | 530 |
Other expenses | 32 | 43 | 57 |
Total claims, benefits and expenses | 3,222 | 3,126 | 3,016 |
Core income (loss) before income tax | 623 | 452 | 555 |
Income tax (expense) benefit on core income (loss) | (134) | (95) | (186) |
Core income (loss) | 489 | 357 | 369 |
Operating Segments | International | |||
Segment Reporting Information [Line Items] | |||
Net written premiums | 971 | 1,018 | 881 |
Operating revenues | |||
Net earned premiums | 974 | 1,001 | 857 |
Net investment income | 63 | 57 | 52 |
Non-insurance warranty revenue | 0 | 0 | 0 |
Other revenues | 0 | 1 | 0 |
Total operating revenues | 1,037 | 1,059 | 909 |
Claims, Benefits and Expenses | |||
Net incurred claims and benefits | 624 | 699 | 575 |
Policyholders’ dividends | 0 | 0 | 0 |
Amortization of deferred acquisition costs | 236 | 231 | 162 |
Non-insurance warranty expense | 0 | 0 | 0 |
Other insurance related expenses | 130 | 135 | 162 |
Other expenses | 8 | 14 | (7) |
Total claims, benefits and expenses | 998 | 1,079 | 892 |
Core income (loss) before income tax | 39 | (20) | 17 |
Income tax (expense) benefit on core income (loss) | (9) | 1 | (9) |
Core income (loss) | 30 | (19) | 8 |
Operating Segments | Life & Group | |||
Segment Reporting Information [Line Items] | |||
Net written premiums | 523 | 524 | 536 |
Operating revenues | |||
Net earned premiums | 520 | 530 | 539 |
Net investment income | 820 | 801 | 782 |
Non-insurance warranty revenue | 0 | 0 | 0 |
Other revenues | 0 | 2 | 2 |
Total operating revenues | 1,340 | 1,333 | 1,323 |
Claims, Benefits and Expenses | |||
Net incurred claims and benefits | 1,416 | 1,218 | 1,269 |
Policyholders’ dividends | 0 | 0 | 0 |
Amortization of deferred acquisition costs | 0 | 0 | 0 |
Non-insurance warranty expense | 0 | 0 | 0 |
Other insurance related expenses | 115 | 122 | 129 |
Other expenses | 8 | 7 | 7 |
Total claims, benefits and expenses | 1,539 | 1,347 | 1,405 |
Core income (loss) before income tax | (199) | (14) | (82) |
Income tax (expense) benefit on core income (loss) | 90 | 57 | 132 |
Core income (loss) | (109) | 43 | 50 |
Operating Segments | Corporate & Other | |||
Segment Reporting Information [Line Items] | |||
Net written premiums | 1 | 0 | 0 |
Operating revenues | |||
Net earned premiums | 1 | 0 | 0 |
Net investment income | 25 | 20 | 20 |
Non-insurance warranty revenue | 0 | 0 | 0 |
Other revenues | 6 | 19 | 2 |
Total operating revenues | 32 | 39 | 22 |
Claims, Benefits and Expenses | |||
Net incurred claims and benefits | 18 | 51 | (19) |
Policyholders’ dividends | 0 | 0 | 0 |
Amortization of deferred acquisition costs | 0 | 0 | 0 |
Non-insurance warranty expense | 0 | 0 | 0 |
Other insurance related expenses | (2) | (1) | (1) |
Other expenses | 144 | 193 | 192 |
Total claims, benefits and expenses | 160 | 243 | 172 |
Core income (loss) before income tax | (128) | (204) | (150) |
Income tax (expense) benefit on core income (loss) | 26 | 39 | 60 |
Core income (loss) | (102) | (165) | (90) |
Eliminations | |||
Segment Reporting Information [Line Items] | |||
Net written premiums | (2) | (1) | (1) |
Operating revenues | |||
Net earned premiums | (2) | (1) | (1) |
Net investment income | 0 | 0 | 0 |
Non-insurance warranty revenue | 0 | 0 | 0 |
Other revenues | (5) | (2) | 0 |
Total operating revenues | (7) | (3) | (1) |
Claims, Benefits and Expenses | |||
Net incurred claims and benefits | 0 | 0 | 0 |
Policyholders’ dividends | 0 | 0 | 0 |
Amortization of deferred acquisition costs | 0 | 0 | 0 |
Non-insurance warranty expense | 0 | 0 | 0 |
Other insurance related expenses | (2) | (1) | (1) |
Other expenses | (5) | (2) | 0 |
Total claims, benefits and expenses | (7) | (3) | (1) |
Core income (loss) before income tax | 0 | 0 | 0 |
Income tax (expense) benefit on core income (loss) | 0 | 0 | 0 |
Core income (loss) | $ 0 | $ 0 | $ 0 |
Business Segments (Balance Shee
Business Segments (Balance Sheet Information) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 |
Segment Reporting Information [Line Items] | |||
Reinsurance receivables | $ 4,204 | $ 4,455 | |
Insurance receivables | 2,481 | 2,365 | |
Deferred acquisition costs | 662 | 633 | |
Goodwill | 147 | 146 | |
Deferred non-insurance warranty acquisition expense | 2,840 | 2,513 | $ 2,094 |
Insurance reserves | |||
Claim and claim adjustment expenses | 21,720 | 21,984 | |
Unearned premiums | 4,583 | 4,183 | |
Future policy benefits | 12,311 | 10,597 | |
Deferred non-insurance warranty revenue | 3,779 | 3,402 | $ 2,941 |
Operating Segments | Specialty | |||
Segment Reporting Information [Line Items] | |||
Reinsurance receivables | 575 | 649 | |
Insurance receivables | 971 | 947 | |
Deferred acquisition costs | 311 | 308 | |
Goodwill | 117 | 117 | |
Deferred non-insurance warranty acquisition expense | 2,840 | 2,513 | |
Insurance reserves | |||
Claim and claim adjustment expenses | 5,238 | 5,465 | |
Unearned premiums | 2,337 | 2,132 | |
Future policy benefits | 0 | 0 | |
Deferred non-insurance warranty revenue | 3,779 | 3,402 | |
Operating Segments | Commercial | |||
Segment Reporting Information [Line Items] | |||
Reinsurance receivables | 855 | 795 | |
Insurance receivables | 1,210 | 1,277 | |
Deferred acquisition costs | 257 | 230 | |
Goodwill | 0 | 0 | |
Deferred non-insurance warranty acquisition expense | 0 | 0 | |
Insurance reserves | |||
Claim and claim adjustment expenses | 8,656 | 8,743 | |
Unearned premiums | 1,626 | 1,454 | |
Future policy benefits | 0 | 0 | |
Deferred non-insurance warranty revenue | 0 | 0 | |
Operating Segments | International | |||
Segment Reporting Information [Line Items] | |||
Reinsurance receivables | 247 | 250 | |
Insurance receivables | 284 | 284 | |
Deferred acquisition costs | 94 | 95 | |
Goodwill | 30 | 29 | |
Deferred non-insurance warranty acquisition expense | 0 | 0 | |
Insurance reserves | |||
Claim and claim adjustment expenses | 1,876 | 1,750 | |
Unearned premiums | 495 | 475 | |
Future policy benefits | 0 | 0 | |
Deferred non-insurance warranty revenue | 0 | 0 | |
Operating Segments | Life & Group | |||
Segment Reporting Information [Line Items] | |||
Reinsurance receivables | 385 | 414 | |
Insurance receivables | 16 | 9 | |
Deferred acquisition costs | 0 | 0 | |
Goodwill | 0 | 0 | |
Deferred non-insurance warranty acquisition expense | 0 | 0 | |
Insurance reserves | |||
Claim and claim adjustment expenses | 3,716 | 3,601 | |
Unearned premiums | 125 | 122 | |
Future policy benefits | 12,311 | 10,597 | |
Deferred non-insurance warranty revenue | 0 | 0 | |
Operating Segments | Corporate & Other | |||
Segment Reporting Information [Line Items] | |||
Reinsurance receivables | 2,142 | 2,347 | |
Insurance receivables | 0 | (152) | |
Deferred acquisition costs | 0 | 0 | |
Goodwill | 0 | 0 | |
Deferred non-insurance warranty acquisition expense | 0 | 0 | |
Insurance reserves | |||
Claim and claim adjustment expenses | 2,234 | 2,425 | |
Unearned premiums | 0 | 0 | |
Future policy benefits | 0 | 0 | |
Deferred non-insurance warranty revenue | 0 | 0 | |
Eliminations | |||
Segment Reporting Information [Line Items] | |||
Reinsurance receivables | 0 | 0 | |
Insurance receivables | 0 | 0 | |
Deferred acquisition costs | 0 | 0 | |
Goodwill | 0 | 0 | |
Deferred non-insurance warranty acquisition expense | 0 | 0 | |
Insurance reserves | |||
Claim and claim adjustment expenses | 0 | 0 | |
Unearned premiums | 0 | 0 | |
Future policy benefits | 0 | 0 | |
Deferred non-insurance warranty revenue | $ 0 | $ 0 |
Business Segments (Revenues by
Business Segments (Revenues by Line of Business) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Total revenues | $ 2,777 | $ 2,685 | $ 2,610 | $ 2,695 | $ 2,403 | $ 2,622 | $ 2,574 | $ 2,535 | $ 10,767 | $ 10,134 | $ 9,542 |
Total operating revenues | 10,738 | 10,186 | 9,449 | ||||||||
Net investment gains (losses) | 29 | (52) | 93 | ||||||||
Operating Segments | Specialty | |||||||||||
Total revenues | 4,491 | 4,180 | 3,625 | ||||||||
Operating Segments | Commercial | |||||||||||
Total revenues | 3,845 | 3,578 | 3,571 | ||||||||
Operating Segments | International | |||||||||||
Total revenues | 1,037 | 1,059 | 909 | ||||||||
Operating Segments | Life & Group | |||||||||||
Total revenues | 1,340 | 1,333 | 1,323 | ||||||||
Operating Segments | Corporate & Other | |||||||||||
Total revenues | 32 | 39 | 22 | ||||||||
Eliminations | |||||||||||
Total revenues | (7) | (3) | (1) | ||||||||
Management & Professional Liability | Operating Segments | Specialty | |||||||||||
Total revenues | 2,572 | 2,440 | 2,533 | ||||||||
Surety | Operating Segments | Specialty | |||||||||||
Total revenues | 596 | 571 | 541 | ||||||||
Warranty & Alternative Risks (1) | Operating Segments | Specialty | |||||||||||
Total revenues | 1,323 | 1,169 | 551 | ||||||||
Middle Market | Operating Segments | Commercial | |||||||||||
Total revenues | 2,249 | 2,045 | 1,965 | ||||||||
Small Business | Operating Segments | Commercial | |||||||||||
Total revenues | 469 | 472 | 480 | ||||||||
Other Commercial Insurance | Operating Segments | Commercial | |||||||||||
Total revenues | 1,127 | 1,061 | 1,126 | ||||||||
Canada | Operating Segments | International | |||||||||||
Total revenues | 277 | 255 | 224 | ||||||||
Europe | Operating Segments | International | |||||||||||
Total revenues | 363 | 363 | 326 | ||||||||
Hardy | Operating Segments | International | |||||||||||
Total revenues | $ 397 | $ 441 | $ 359 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Liability for Catastrophe Claims [Line Items] | |||||||||||
Revenues | $ 2,777 | $ 2,685 | $ 2,610 | $ 2,695 | $ 2,403 | $ 2,622 | $ 2,574 | $ 2,535 | $ 10,767 | $ 10,134 | $ 9,542 |
Net income (loss) | $ 273 | $ 107 | $ 278 | $ 342 | $ (84) | $ 336 | $ 270 | $ 291 | $ 1,000 | $ 813 | $ 899 |
Basic earnings (loss) per share (in usd per share) | $ 1 | $ 0.39 | $ 1.03 | $ 1.26 | $ (0.31) | $ 1.24 | $ 0.99 | $ 1.07 | $ 3.68 | $ 2.99 | $ 3.32 |
Diluted earnings (loss) per share (in usd per share) | $ 1 | $ 0.39 | $ 1.02 | $ 1.25 | $ (0.31) | $ 1.23 | $ 0.99 | $ 1.07 | $ 3.67 | $ 2.98 | $ 3.30 |
Charge related to recognition of active life reserve premium deficiency | $ 170 | ||||||||||
Hurricane Michael and California Wildfires | |||||||||||
Liability for Catastrophe Claims [Line Items] | |||||||||||
Catastrophe losses net of reinsurance | $ 107 | ||||||||||
Limited Partnership and Common Stock Investments [Member] | |||||||||||
Liability for Catastrophe Claims [Line Items] | |||||||||||
Loss on limited partnership and common stock investments | $ 109 |
Related Party Transactions Narr
Related Party Transactions Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Due to related parties | $ 21 | $ 23 | |
Fees and expenses of investment facilities and services | |||
Amounts reimbursed to Loews for services provided to the Company | 44 | 43 | $ 43 |
Due to related parties | 21 | 23 | |
Corporate services and related travel expenses | |||
Amounts reimbursed to Loews for services provided to the Company | 1 | 1 | |
Taxes paid | |||
Due to related parties | 21 | 8 | |
Loews | |||
Amounts earned from Loews for insurance premiums | $ 2 | $ 2 | $ 2 |
Non-Insurance Revenues from C_2
Non-Insurance Revenues from Contracts with Customers (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Deferred non-insurance warranty revenue | $ 3,779 | $ 3,402 | $ 2,941 |
Contract with customer, liability, revenue recognized | 971 | 834 | |
Deferred non-insurance warranty acquisition expense | 2,840 | 2,513 | $ 2,094 |
Amortization of deferred sales commissions | 813 | 673 | |
Capitalized Commission Costs | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Deferred non-insurance warranty acquisition expense | 2,800 | 2,500 | |
Capitalized Administrator Service Costs | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Deferred non-insurance warranty acquisition expense | $ 31 | $ 24 |
Non-Insurance Revenues from C_3
Non-Insurance Revenues from Contracts with Customers (Performance Obligation) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Remaining performance obligation, amount | $ 1,100 |
Remaining performance obligation, expected timing of satisfaction, period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Remaining performance obligation, amount | $ 882 |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Remaining performance obligation, amount | $ 674 |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Remaining performance obligation, amount | $ 1,100 |
Remaining performance obligation, expected timing of satisfaction, period |
Schedule II. Condensed Financ_2
Schedule II. Condensed Financial Information of Registrant (Parent Company) (Schedule of Condensed Financial Information of Registrant, Statements of Operations and Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | |||||||||||
Net investment income | $ 2,118 | $ 1,817 | $ 2,034 | ||||||||
Net investment losses | 29 | (52) | 93 | ||||||||
Total revenues | $ 2,777 | $ 2,685 | $ 2,610 | $ 2,695 | $ 2,403 | $ 2,622 | $ 2,574 | $ 2,535 | 10,767 | 10,134 | 9,542 |
Expenses | |||||||||||
Interest | 131 | 138 | 161 | ||||||||
Income tax benefit | (223) | (151) | (411) | ||||||||
Net income | $ 273 | $ 107 | $ 278 | $ 342 | $ (84) | $ 336 | $ 270 | $ 291 | 1,000 | 813 | 899 |
Total comprehensive income (loss) | 1,929 | (81) | 1,104 | ||||||||
Parent Company | |||||||||||
Revenues | |||||||||||
Net investment income | 13 | 10 | 6 | ||||||||
Net investment losses | (21) | 0 | (42) | ||||||||
Total revenues | (8) | 10 | (36) | ||||||||
Expenses | |||||||||||
Administrative and general | 1 | 1 | 2 | ||||||||
Interest | 131 | 135 | 152 | ||||||||
Total expenses | 132 | 136 | 154 | ||||||||
Loss from operations before income taxes and equity in net income of subsidiaries | (140) | (126) | (190) | ||||||||
Income tax benefit | 21 | 9 | 57 | ||||||||
Loss before equity in net income of subsidiaries | (119) | (117) | (133) | ||||||||
Equity in net income of subsidiaries | 1,119 | 930 | 1,032 | ||||||||
Net income | 1,000 | 813 | 899 | ||||||||
Equity in other comprehensive income (loss) of subsidiaries | 929 | (894) | 205 | ||||||||
Total comprehensive income (loss) | $ 1,929 | $ (81) | $ 1,104 |
Schedule II. Condensed Financ_3
Schedule II. Condensed Financial Information of Registrant (Parent Company) (Schedule of Condensed Financial Information of Registrant, Balance Sheets) (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||||||
Cash | $ 242 | $ 310 | ||||
Short term investments | 1,861 | 1,286 | ||||
Other assets | 1,473 | $ 1,445 | 1,208 | |||
Total assets | 60,612 | 57,152 | ||||
Liabilities | ||||||
Long term debt | 2,679 | 2,680 | ||||
Other liabilities | 3,325 | $ 3,328 | 3,089 | |||
Total liabilities | 48,397 | 45,935 | ||||
Stockholders' Equity | ||||||
Common stock ($2.50 par value; 500,000,000 shares authorized; 273,040,243 shares issued; 271,412,591 and 271,456,978 shares outstanding) | 683 | 683 | ||||
Additional paid-in capital | 2,203 | 2,192 | ||||
Retained earnings | 9,348 | 9,277 | $ 9,348 | |||
Accumulated other comprehensive income (loss) | 51 | (878) | ||||
Treasury stock (1,627,652 and 1,583,265 shares), at cost | (70) | (57) | ||||
Total stockholders’ equity | 12,215 | 11,217 | $ 12,244 | |||
Total liabilities and stockholders' equity | $ 60,612 | $ 57,152 | ||||
Balance Sheet Parenthetical | ||||||
Common stock, par value (in usd per share) | $ 2.50 | $ 2.50 | ||||
Common stock, shares authorized (in shares | 500,000,000 | 500,000,000 | ||||
Common stock, shares issued (in shares) | 273,040,243 | 273,040,243 | ||||
Common stock, shares outstanding (in shares) | 271,412,591 | 271,456,978 | ||||
Treasury stock, shares (in shares) | 1,627,652 | 1,583,265 | ||||
Parent Company | ||||||
Assets | ||||||
Investment in subsidiaries | $ 14,412 | $ 13,427 | ||||
Cash | 1 | 1 | $ 1 | $ 1 | ||
Short term investments | 521 | 519 | ||||
Amounts due from affiliates | 2 | 2 | ||||
Other assets | 1 | 0 | ||||
Total assets | 14,937 | 13,949 | ||||
Liabilities | ||||||
Long term debt | 2,679 | 2,680 | ||||
Other liabilities | 43 | 52 | ||||
Total liabilities | 2,722 | 2,732 | ||||
Stockholders' Equity | ||||||
Common stock ($2.50 par value; 500,000,000 shares authorized; 273,040,243 shares issued; 271,412,591 and 271,456,978 shares outstanding) | 683 | 683 | ||||
Additional paid-in capital | 2,203 | 2,192 | ||||
Retained earnings | 9,348 | 9,277 | ||||
Accumulated other comprehensive income (loss) | 51 | (878) | ||||
Treasury stock (1,627,652 and 1,583,265 shares), at cost | (70) | (57) | ||||
Total stockholders’ equity | 12,215 | 11,217 | ||||
Total liabilities and stockholders' equity | $ 14,937 | $ 13,949 |
Schedule II. Condensed Financ_4
Schedule II. Condensed Financial Information of Registrant (Parent Company) (Schedule of Condensed Financial Information of Registrant, Statements of Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities | |||||||||||
Net income | $ 273 | $ 107 | $ 278 | $ 342 | $ (84) | $ 336 | $ 270 | $ 291 | $ 1,000 | $ 813 | $ 899 |
Adjustments to reconcile net income to net cash flows provided by operating activities: | |||||||||||
Net investment losses | (29) | 52 | (93) | ||||||||
Other, net | (225) | (223) | 53 | ||||||||
Net cash flows provided by operating activities | 1,140 | 1,227 | 1,254 | ||||||||
Cash Flows from Investing Activities | |||||||||||
Change in short term investments | (535) | 168 | (6) | ||||||||
Other, net | 15 | 18 | 20 | ||||||||
Net cash flows used by investing activities | (225) | (177) | (424) | ||||||||
Cash Flows from Financing Activities | |||||||||||
Dividends paid to common stockholders | (929) | (896) | (842) | ||||||||
Proceeds from the issuance of debt | 496 | 0 | 496 | ||||||||
Repayment of debt | (520) | (180) | (391) | ||||||||
Purchase of treasury stock | (23) | 0 | 0 | ||||||||
Other, net | (12) | (9) | (18) | ||||||||
Net cash flows used by financing activities | (988) | (1,085) | (755) | ||||||||
Cash, beginning of year | 310 | 310 | |||||||||
Cash, end of year | 242 | 310 | 242 | 310 | |||||||
Parent Company | |||||||||||
Cash Flows from Operating Activities | |||||||||||
Net income | 1,000 | 813 | 899 | ||||||||
Adjustments to reconcile net income to net cash flows provided by operating activities: | |||||||||||
Equity in net income of subsidiaries | (1,119) | (930) | (1,032) | ||||||||
Dividends received from subsidiaries | 1,065 | 1,026 | 955 | ||||||||
Net investment losses | 21 | 0 | 42 | ||||||||
Other, net | 13 | 16 | 36 | ||||||||
Net cash flows provided by operating activities | 980 | 925 | 900 | ||||||||
Cash Flows from Investing Activities | |||||||||||
Change in short term investments | 10 | 130 | (146) | ||||||||
Capital contributions to subsidiaries | (2) | (2) | 0 | ||||||||
Other, net | 0 | 0 | 0 | ||||||||
Net cash flows used by investing activities | 8 | 128 | (146) | ||||||||
Cash Flows from Financing Activities | |||||||||||
Dividends paid to common stockholders | (929) | (896) | (842) | ||||||||
Proceeds from the issuance of debt | 496 | 0 | 496 | ||||||||
Repayment of debt | (520) | (150) | (391) | ||||||||
Purchase of treasury stock | (23) | 0 | 0 | ||||||||
Other, net | (12) | (7) | (17) | ||||||||
Net cash flows used by financing activities | (988) | (1,053) | (754) | ||||||||
Net change in cash | 0 | 0 | 0 | ||||||||
Cash, beginning of year | $ 1 | $ 1 | 1 | 1 | 1 | ||||||
Cash, end of year | $ 1 | $ 1 | $ 1 | $ 1 | $ 1 |
Schedule II. Condensed Financ_5
Schedule II. Condensed Financial Information of Registrant (Parent Company) (Narrative) (Details) | Dec. 31, 2019 |
CNAF Consolidated | Loews | |
Condensed Financial Statements, Captions [Line Items] | |
Noncontrolling interest, ownership percentage by parent | 89.00% |
Schedule V. Valuation and Qua_2
Schedule V. Valuation and Qualifying Accounts (Schedule of valuation and qualifying accounts) (Details) - Allowance for doubtful accounts, insurance and reinsurance receivables - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Movement in valuation allowances and reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 71 | $ 73 | $ 83 |
Charged to Costs and Expenses | (6) | 4 | (1) |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | (8) | (6) | (9) |
Balance at End of Period | $ 57 | $ 71 | $ 73 |
Schedule VI. Supplemental Inf_2
Schedule VI. Supplemental Information Concerning Property and Casualty Insurance Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Incurred claim and claim adjustment expenses related to current year | $ 5,356 | $ 5,358 | $ 5,201 |
Incurred claim and claim adjustment expenses related to prior years | (127) | (179) | (381) |
Consolidated Property and Casualty Insurance Entity | |||
Deferred acquisition costs | 662 | 633 | |
Reserves for unpaid claim and claim adjustment expenses | 21,720 | 21,984 | |
Discount deducted from claim and claim adjustment expense reserves above (based on interest rates ranging from 3.5% to 7.6%) | 1,321 | 1,388 | |
Unearned premiums | 4,583 | 4,183 | |
Net written premiums | 7,656 | 7,345 | 7,069 |
Net earned premiums | 7,428 | 7,312 | 6,988 |
Net investment income | 2,063 | 1,751 | 1,992 |
Incurred claim and claim adjustment expenses related to current year | 5,356 | 5,358 | 5,201 |
Incurred claim and claim adjustment expenses related to prior years | (127) | (179) | (381) |
Amortization of deferred acquisition costs | 1,383 | 1,335 | 1,233 |
Paid claim and claim adjustment expenses | $ 5,576 | $ 5,331 | $ 5,341 |
Consolidated Property and Casualty Insurance Entity | Minimum | |||
Supplemental Information Parenthetical | |||
SEC Schedule, 12-18, supplemental information, property-casualty insurance underwriters, interest rate at which discount computed | 3.50% | 3.50% | |
Consolidated Property and Casualty Insurance Entity | Maximum | |||
Supplemental Information Parenthetical | |||
SEC Schedule, 12-18, supplemental information, property-casualty insurance underwriters, interest rate at which discount computed | 7.60% | 7.60% |
Uncategorized Items - cna2019q4
Label | Element | Value |
AOCI Attributable to Parent [Member] | ||
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | $ (878,000,000) |
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | (173,000,000) |
Retained Earnings [Member] | ||
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | 9,277,000,000 |
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | 9,364,000,000 |
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | $ 9,359,000,000 |