COVER
COVER - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 29, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 1-06541 | |
Entity Registrant Name | LOEWS CORP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 13-2646102 | |
Entity Address, Address Line One | 667 Madison Avenue | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10065-8087 | |
City Area Code | 212 | |
Local Phone Number | 521-2000 | |
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Trading Symbol | L | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 246,108,045 | |
Entity Central Index Key | 0000060086 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Investments: | ||
Fixed maturities, amortized cost of $40,928 and $39,952, less allowance for credit loss of $17 and $18 | $ 41,945 | $ 44,380 |
Equity securities, cost of $1,496 and $1,546 | 1,515 | 1,674 |
Limited partnership investments | 1,917 | 1,933 |
Other invested assets, primarily mortgage loans, less allowance for credit loss of $16 and $16 | 1,070 | 1,091 |
Short term investments | 4,655 | 4,860 |
Total investments | 51,102 | 53,938 |
Cash | 798 | 621 |
Receivables | 9,259 | 9,273 |
Property, plant and equipment | 9,896 | 9,888 |
Goodwill | 348 | 349 |
Deferred non-insurance warranty acquisition expenses | 3,504 | 3,476 |
Deferred acquisition costs of insurance subsidiaries | 766 | 737 |
Other assets | 3,471 | 3,344 |
Total assets | 79,144 | 81,626 |
Insurance reserves: | ||
Claim and claim adjustment expense | 24,348 | 24,174 |
Future policy benefits | 11,938 | 13,236 |
Unearned premiums | 5,942 | 5,761 |
Total insurance reserves | 42,228 | 43,171 |
Payable to brokers | 396 | 90 |
Short term debt | 393 | 93 |
Long term debt | 8,883 | 8,986 |
Deferred income taxes | 715 | 1,079 |
Deferred non-insurance warranty revenue | 4,528 | 4,503 |
Other liabilities | 4,306 | 4,529 |
Total liabilities | 61,449 | 62,451 |
Shareholders' equity: | ||
Common stock, $0.01 par value, issued | 2 | 2 |
Additional paid-in capital | 2,859 | 2,885 |
Retained earnings | 15,097 | 14,776 |
Accumulated other comprehensive income (loss) | (1,251) | 186 |
Shareholders' equity before treasury stock, total | 16,707 | 17,849 |
Less treasury stock, at cost (2,195,656 and 50,000 shares) | (132) | (3) |
Total shareholders’ equity | 16,575 | 17,846 |
Noncontrolling interests | 1,120 | 1,329 |
Total equity | 17,695 | 19,175 |
Total liabilities and equity | $ 79,144 | $ 81,626 |
CONSOLIDATED CONDENSED BALANC_2
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Investments: | ||
Fixed maturities, amortized cost | $ 40,928 | $ 39,952 |
Fixed maturities, allowance for credit loss | 17 | 18 |
Equity securities, cost | 1,496 | 1,546 |
Other invested assets, primarily mortgage loans, allowance for credit loss | $ 16 | $ 16 |
Shareholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,800,000,000 | 1,800,000,000 |
Common stock, shares issued (in shares) | 248,596,343 | 248,467,051 |
Treasury stock, shares (in shares) | 2,195,656 | 50,000 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues: | ||
Insurance premiums | $ 2,059 | $ 1,962 |
Net investment income | 432 | 550 |
Investment losses | (11) | 57 |
Non-insurance warranty revenue | 382 | 338 |
Operating revenues and other | 540 | 715 |
Total | 3,402 | 3,622 |
Expenses: | ||
Insurance claims and policyholders’ benefits | 1,455 | 1,506 |
Amortization of deferred acquisition costs | 344 | 359 |
Non-insurance warranty expense | 354 | 311 |
Operating expenses and other | 691 | 914 |
Interest | 96 | 125 |
Total | 2,940 | 3,215 |
Income (loss) before income tax | 462 | 407 |
Income tax expense | (92) | (114) |
Net income | 370 | 293 |
Amounts attributable to noncontrolling interests | (32) | (32) |
Net income (loss) attributable to Loews Corporation | $ 338 | $ 261 |
Per share-basic (in dollars per share) | $ 1.36 | $ 0.98 |
Per share-diluted (in dollars per share) | $ 1.36 | $ 0.97 |
Weighted average shares outstanding: | ||
Basic weighted average number of shares outstanding (in shares) | 247,970 | 267,390 |
Dilutive weighted average number of potential shares of common stock (in shares) | 510 | 370 |
Diluted weighted average number of shares outstanding (in shares) | 248,480 | 267,760 |
CONSOLIDATED CONDENSED STATEM_2
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 370 | $ 293 |
Other comprehensive loss, after tax | ||
Net unrealized losses on investments with an allowance for credit losses | (4) | |
Net unrealized losses on other investments | (1,611) | (627) |
Total unrealized losses on investments | (1,615) | (627) |
Unrealized gains on cash flow hedges | 18 | 4 |
Pension and postretirement benefits | 7 | 9 |
Foreign currency translation | (15) | 3 |
Other comprehensive loss | (1,605) | (611) |
Comprehensive loss | (1,235) | (318) |
Amounts attributable to noncontrolling interests | 136 | 32 |
Total comprehensive loss attributable to Loews Corporation | $ (1,099) | $ (286) |
CONSOLIDATED CONDENSED STATEM_3
CONSOLIDATED CONDENSED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Common Stock Held in Treasury | Noncontrolling Interests |
Balance at beginning of period at Dec. 31, 2020 | $ 19,181 | $ 3 | $ 3,133 | $ 14,150 | $ 581 | $ (7) | $ 1,321 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 293 | 261 | 32 | ||||
Other comprehensive income | (611) | (547) | (64) | ||||
Dividends paid ($0.0625 per share) | (49) | (17) | |||||
Dividends paid ($0.0625 per share) | (32) | ||||||
Purchase of subsidiary stock from noncontrolling interests | (3) | (3) | |||||
Purchases of Loews Corporation treasury stock | (274) | (274) | |||||
Stock-based compensation | 4 | (11) | 15 | ||||
Other | (4) | (3) | 1 | (2) | |||
Balance at end of period at Mar. 31, 2021 | 18,537 | 3 | 3,119 | 14,394 | 34 | (280) | 1,267 |
Balance at beginning of period at Dec. 31, 2021 | 19,175 | 2 | 2,885 | 14,776 | 186 | (3) | 1,329 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 370 | 338 | 32 | ||||
Other comprehensive income | (1,605) | (1,437) | (168) | ||||
Dividends paid ($0.0625 per share) | (84) | (16) | |||||
Dividends paid ($0.0625 per share) | (68) | ||||||
Purchase of subsidiary stock from noncontrolling interests | (21) | (1) | (20) | ||||
Purchases of Loews Corporation treasury stock | (129) | (129) | |||||
Stock-based compensation | (10) | (25) | 15 | ||||
Other | (1) | (1) | |||||
Balance at end of period at Mar. 31, 2022 | $ 17,695 | $ 2 | $ 2,859 | $ 15,097 | $ (1,251) | $ (132) | $ 1,120 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends paid (in dollars per share) | $ 0.0625 | $ 0.0625 |
CONSOLIDATED CONDENSED STATEM_4
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating Activities: | ||
Net income | $ 370 | $ 293 |
Adjustments to reconcile net income to net cash provided by operating activities, net | 333 | 257 |
Changes in operating assets and liabilities, net: | ||
Receivables | (28) | (736) |
Deferred acquisition costs | (31) | (32) |
Insurance reserves | 489 | 605 |
Other assets | (134) | (250) |
Other liabilities | (202) | 126 |
Trading securities | (374) | (129) |
Net cash flow provided by operating activities | 423 | 134 |
Investing Activities: | ||
Purchases of fixed maturities | (2,547) | (2,203) |
Proceeds from sales of fixed maturities | 803 | 907 |
Proceeds from maturities of fixed maturities | 916 | 1,084 |
Purchases of equity securities | (75) | (81) |
Proceeds from sales of equity securities | 77 | 119 |
Purchases of limited partnership investments | (85) | (61) |
Proceeds from sales of limited partnership investments | 113 | 49 |
Purchases of property, plant and equipment | (121) | (87) |
Change in short term investments | 696 | 569 |
Other, net | 36 | 10 |
Net cash flow (used) provided by investing activities | (187) | 306 |
Financing Activities: | ||
Dividends paid | (16) | (17) |
Dividends paid to noncontrolling interests | (68) | (32) |
Purchases of Loews Corporation treasury stock | (132) | (280) |
Purchases of subsidiary stock from noncontrolling interests | (21) | (3) |
Principal payments on debt | (300) | (1,073) |
Issuance of debt | 495 | 1,159 |
Other, net | (14) | (12) |
Net cash flow used by financing activities | (56) | (258) |
Effect of foreign exchange rate on cash | (3) | |
Net change in cash | 177 | 182 |
Cash, beginning of year | 621 | 478 |
Cash, end of year | $ 798 | $ 660 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Loews Corporation is a holding company. Its consolidated operating subsidiaries are engaged in the following lines of business: commercial property and casualty insurance (CNA Financial Corporation (“CNA”), an 89.6% owned subsidiary); transportation and storage of natural gas and natural gas liquids (Boardwalk Pipeline Partners, LP (“Boardwalk Pipelines”), a wholly owned subsidiary) and the operation of a chain of hotels (Loews Hotels Holding Corporation (“Loews Hotels & Co”), a wholly owned subsidiary). Unless the context otherwise requires, the term “Company” as used herein means Loews Corporation including its consolidated subsidiaries, the term “Parent Company” means Loews Corporation excluding its subsidiaries, the term “Net income (loss) attributable to Loews Corporation” as used herein means Net income (loss) attributable to Loews Corporation shareholders and the term “subsidiaries” means Loews Corporation’s consolidated subsidiaries. On April 1, 2021, Loews Corporation sold 47% of Altium Packaging LLC (“Altium Packaging”), previously a 99% owned subsidiary, and following the transaction Loews Corporation deconsolidated Altium Packaging. For additional information regarding the deconsolidation of Altium Packaging, see Note 2 of the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. In the opinion of management, the accompanying unaudited Consolidated Condensed Financial Statements reflect all adjustments (consisting of normal recurring accruals) necessary to present fairly the Company’s financial position as of March 31, 2022 and December 31, 2021 and results of operations, comprehensive loss and changes in shareholders’ equity and cash flows for the three months ended March 31, 2022 and 2021. Net income for the first quarter of each of the years is not necessarily indicative of net income for that entire year. These Consolidated Condensed Financial Statements should be read in conjunction with the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. The Company presents basic and diluted net income (loss) per share on the Consolidated Condensed Statements of Operations. Basic net income (loss) per share excludes dilution and is computed by dividing net income (loss) attributable to common stock by the weighted average number of common shares outstanding for the period. Diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the three months ended March 31, 2022 and 2021 there were no shares attributable to employee stock-based compensation awards excluded from the diluted weighted average shares outstanding amounts because the effect would have been antidilutive. Recently issued Accounting Standards Updates (“ASUs”) – In August of 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-12 The Company will adopt the new guidance effective January 1, 2023, using the modified retrospective method applied as of the transition date of January 1, 2021. A published spot rate curve constructed from A+, A and A- rated U.S. dollar denominated corporate bonds matched to the duration of the corresponding insurance liabilities will be used to calculate discount rates. Long-duration contracts will be grouped into calendar year cohorts based on the contract issue date and product line. Long term care contracts will be grouped separately from the fully-ceded single premium immediate annuity contracts. The most significant impact at the transition date will be the effect of updating the discount rate assumption to reflect an upper-medium grade fixed-income instrument yield, which will be partially offset by the de-recognition of Shadow Adjustments associated with long-duration contracts. The Company expects the net impact of these changes will be a $2.0 billion - $2.3 billion (after tax and noncontrolling interests) decrease in Accumulated other comprehensive income (“AOCI”) as of the transition date of January 1, 2021. There is a minimal transition impact expected to retained earnings. The requirement to review, and update if there is a change, cash flow assumptions at least annually is expected to change the pattern of earnings being recognized. Adoption will also significantly expand the Company’s disclosures, and will impact systems, processes and controls. While the requirements of the new guidance represent a material change from existing accounting guidance, the new guidance will not impact capital and surplus under statutory accounting practices, cash flows, or the underlying economics of the business. The Company continues to make progress in connection with these matters and is in the process of refining key accounting policy decisions, technology solutions and updates to internal controls associated with adoption of the new guidance. These in-progress activities include modifications of actuarial valuation systems, data sourcing, analytical procedures and reporting processes. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Net investment income is as follows: Three Months Ended March 31 2022 2021 (In millions) Fixed maturity securities $ 429 $ 428 Limited partnership investments 20 47 Equity securities 2 29 Income (loss) from trading portfolio (a) (15) 50 Other 15 16 Total investment income 451 570 Investment expenses (19) (20) Net investment income $ 432 $ 550 (a) During the three months ended March 31, 2022 and 2021, $(31) and $32 of net investment income (loss) was recognized due to the change in fair value of securities still held as of March 31, 2022 and 2021. Investment gains (losses) are as follows: Three Months Ended March 31 2022 2021 (In millions) Fixed maturity securities: Gross gains $ 26 $ 58 Gross losses (28) (20) Investment gains (losses) on fixed maturity securities (2) 38 Equity securities (38) 2 Derivative instruments 29 17 Investment gains (losses) (a) $ (11) $ 57 (a) During the three months ended March 31, 2022 and 2021, $38 of investment losses and $2 of investment gains were recognized due to the change in fair value of non-redeemable preferred stock still held as of March 31, 2022 and 2021. The following tables present the activity related to the allowance on available-for-sale securities with credit impairments and purchased credit-deteriorated (“PCD”) assets. Accrued interest receivables on available-for-sale fixed maturity securities totaled $389 million, $369 million and $389 million as of March 31, 2022, December 31, 2021 and March 31, 2021 and are excluded from the estimate of expected credit losses and the amortized cost basis in the tables within this Note. Three months ended March 31, 2022 Corporate and Other Bonds Asset-backed Total (In millions) Allowance for credit losses: Balance as of January 1, 2022 $ 11 $ 7 $ 18 Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period 1 (2) (1) Total allowance for credit losses $ 12 $ 5 $ 17 Three months ended March 31, 2021 Allowance for credit losses: Balance as of January 1, 2021 $ 23 $ 17 $ 40 Additions to the allowance for credit losses: Securities for which credit losses were not previously recorded 14 14 Available-for-sale securities accounted for as PCD assets 2 2 Reductions to the allowance for credit losses: Securities sold during the period (realized) 6 6 Additional decreases to the allowance for credit losses on securities that had an allowance recorded in a previous period (6) (1) (7) Total allowance for credit losses $ 27 $ 16 $ 43 The components of available-for-sale impairment losses recognized in earnings by asset type are presented in the following table. The table includes losses on securities with an intention to sell and changes in the allowance for credit losses on securities since acquisition date: Three Months Ended March 31 2022 2021 (In millions) Fixed maturity securities available-for-sale: Corporate and other bonds $ 8 $ 7 Asset-backed 2 (1) Impairment losses recognized in earnings $ 10 $ 6 There were no losses recognized on mortgage loans during the three months ended March 31, 2022 or 2021. The amortized cost and fair values of fixed maturity securities are as follows: March 31, 2022 Cost or Amortized Cost Gross Unrealized Gross Unrealized Allowance Estimated (In millions) Fixed maturity securities: Corporate and other bonds $ 22,001 $ 1,277 $ 486 $ 12 $ 22,780 States, municipalities and political 10,516 862 319 11,059 Asset-backed: Residential mortgage-backed 2,983 25 160 2,848 Commercial mortgage-backed 2,008 13 81 1,940 Other asset-backed 2,710 11 93 5 2,623 Total asset-backed 7,701 49 334 5 7,411 U.S. Treasury and obligations of 125 5 120 Foreign government 559 3 13 549 Redeemable preferred stock 20 20 Fixed maturities available-for-sale 40,922 2,191 1,157 17 41,939 Fixed maturities trading 6 6 Total fixed maturity securities $ 40,928 $ 2,191 $ 1,157 $ 17 $ 41,945 December 31, 2021 Cost or Amortized Cost Gross Unrealized Gross Unrealized Allowance Estimated (In millions) Fixed maturity securities: Corporate and other bonds $ 21,444 $ 2,755 $ 56 $ 11 $ 24,132 States, municipalities and political 10,358 1,599 14 11,943 Asset-backed: Residential mortgage-backed 2,893 71 8 2,956 Commercial mortgage-backed 1,987 63 19 2,031 Other asset-backed 2,561 54 10 7 2,598 Total asset-backed 7,441 188 37 7 7,585 U.S. Treasury and obligations of 132 1 3 130 Foreign government 570 15 2 583 Fixed maturities available-for-sale 39,945 4,558 112 18 44,373 Fixed maturities trading 7 7 Total fixed maturity securities $ 39,952 $ 4,558 $ 112 $ 18 $ 44,380 The net unrealized gains on available-for-sale investments included in the tables above are recorded as a component of AOCI. When presented in AOCI, these amounts are net of tax and noncontrolling interests and any required Shadow Adjustments. To the extent that unrealized gains on fixed maturity securities supporting structured settlements not funded by annuities were realized, or that unrealized gains on fixed maturity securities supporting long term care products would result in a premium deficiency, or would impact the reserve balance, if realized, a related increase in Insurance reserves is recorded, net of tax and noncontrolling interests, as a reduction of net unrealized gains through Other comprehensive income (loss) (“Shadow Adjustments”). As of March 31, 2022 and December 31, 2021, the net unrealized gains on investments included in AOCI were correspondingly reduced by Shadow Adjustments of $1.3 billion and $2.2 billion (after tax and noncontrolling interests). The available-for-sale securities in a gross unrealized loss position for which an allowance for credit losses has not been recorded are as follows: Less than 12 Months 12 Months or Longer Total March 31, 2022 Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses (In millions) Fixed maturity securities: Corporate and other bonds $ 7,390 $ 441 $ 327 $ 45 $ 7,717 $ 486 States, municipalities and political 2,796 314 35 5 2,831 319 Asset-backed: Residential mortgage-backed 2,315 160 2,315 160 Commercial mortgage-backed 1,274 65 151 16 1,425 81 Other asset-backed 1,717 90 67 3 1,784 93 Total asset-backed 5,306 315 218 19 5,524 334 U.S. Treasury and obligations of 94 5 5 99 5 Foreign government 327 11 26 2 353 13 Total fixed maturity securities $ 15,913 $ 1,086 $ 611 $ 71 $ 16,524 $ 1,157 December 31, 2021 Fixed maturity securities: Corporate and other bonds $ 2,389 $ 48 $ 136 $ 8 $ 2,525 $ 56 States, municipalities and political 730 14 730 14 Asset-backed: Residential mortgage-backed 1,043 8 1,043 8 Commercial mortgage-backed 527 7 167 12 694 19 Other asset-backed 840 10 62 902 10 Total asset-backed 2,410 25 229 12 2,639 37 U.S. Treasury and obligations of 69 3 5 74 3 Foreign government 97 2 97 2 Total fixed maturity securities $ 5,695 $ 92 $ 370 $ 20 $ 6,065 $ 112 The following table presents the estimated fair value and gross unrealized losses of fixed maturity securities in a gross unrealized loss position for which an allowance for credit loss has not been recorded, by ratings distribution. March 31, 2022 December 31, 2021 Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses (In millions) U.S. Government, Government agencies and Government-sponsored enterprises $ 2,095 $ 116 $ 898 $ 8 AAA 993 105 368 6 AA 2,809 269 875 17 A 3,300 205 1,516 23 BBB 6,073 392 1,812 42 Non-investment grade 1,254 70 596 16 Total $ 16,524 $ 1,157 $ 6,065 $ 112 Based on current facts and circumstances, the unrealized losses presented in the March 31, 2022 securities in a gross unrealized loss position table above are not believed to be indicative of the ultimate collectibility of the current amortized cost of the securities, but rather are primarily attributable to changes in risk-free interest rates, and to a lesser extent credit spreads. In reaching this determination, the recent volatility in risk-free rates and spreads, as well as the fact that the unrealized losses are concentrated in investment grade issuers, were considered. Additionally, there is no current intent to sell securities with unrealized losses, nor is it more likely than not that sale will be required prior to recovery of amortized cost; accordingly, it was determined that there are no additional impairment losses to be recorded at March 31, 2022. Contractual Maturity The following table presents available-for-sale fixed maturity securities by contractual maturity. March 31, 2022 December 31, 2021 Cost or Amortized Cost Estimated Fair Cost or Amortized Cost Estimated (In millions) Due in one year or less $ 1,533 $ 1,546 $ 1,603 $ 1,624 Due after one year through five years 10,206 10,337 10,637 11,229 Due after five years through ten years 14,040 14,032 13,294 14,338 Due after ten years 15,143 16,024 14,411 17,182 Total $ 40,922 $ 41,939 $ 39,945 $ 44,373 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. Mortgage Loans The following table presents the amortized cost basis of mortgage loans for each credit quality indicator by year of origination. The primary credit quality indicators utilized are debt service coverage ratios (“DSCR”) and loan-to-value (“LTV”) ratios. Mortgage Loans Amortized Cost Basis by Origination Year (a) As of March 31, 2022 2022 2021 2020 2019 2018 Prior Total (In millions) DSCR ≥1.6x LTV less than 55% $ 9 $ 94 $ 21 $ 54 $ 247 $ 425 LTV 55% to 65% 5 19 8 24 56 LTV greater than 65% $ 18 11 29 DSCR 1.2x - 1.6x LTV less than 55% 13 14 95 10 56 188 LTV 55% to 65% 21 36 24 8 89 LTV greater than 65% — DSCR ≤1.2x LTV less than 55% 52 30 82 LTV 55% to 65% 55 55 LTV greater than 65% 21 6 7 34 Total $ 39 $ 95 $ 151 $ 237 $ 64 $ 372 $ 958 (a) The values in the table above reflect DSCR on a standardized amortization period and LTV ratios based on the most recent appraised values trended forward using changes in a commercial real estate price index. Derivative Financial Instruments A summary of the aggregate contractual or notional amounts and gross estimated fair values related to derivative financial instruments follows. The contractual or notional amounts for derivatives are used to calculate the exchange of contractual payments under related agreements and may not be representative of the potential for gain or loss on these instruments. Gross estimated fair values of derivative positions are currently presented in Equity securities, Receivables and Payable to brokers on the Consolidated Condensed Balance Sheets. March 31, 2022 December 31, 2021 Contractual/Notional Amount Estimated Fair Value Contractual/Notional Amount Estimated Fair Value Asset (Liability) Asset (Liability) (In millions) Without hedge designation: Equity markets: Options – purchased $ 76 $ 1 Futures – short 103 1 Interest rate swaps 240 10 $ 100 Forward commitments for mortgage-backed securities 45 Currency forwards 13 Embedded derivative on funds withheld liability 268 16 270 $ (12) Investment Commitments As part of the overall investment strategy, investments are made 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 private placement securities. As of March 31, 2022, commitments to purchase or fund were approximately $1.3 billion and to sell were approximately $65 million under the terms of these investments. |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Assets and liabilities measured at fair value on a recurring basis are summarized in the following tables. Corporate bonds and other includes obligations of the U.S. Treasury, government-sponsored enterprises, foreign governments and redeemable preferred stock. March 31, 2022 Level 1 Level 2 Level 3 Total (In millions) Fixed maturity securities: Corporate bonds and other $ 129 $ 22,425 $ 915 $ 23,469 States, municipalities and political subdivisions 11,008 51 11,059 Asset-backed 6,807 604 7,411 Fixed maturities available-for-sale 129 40,240 1,570 41,939 Fixed maturities trading 6 6 Total fixed maturities $ 129 $ 40,246 $ 1,570 $ 41,945 Equity securities $ 788 $ 683 $ 44 $ 1,515 Short term and other 4,530 30 4,560 Receivables 12 12 Payable to brokers (96) (96) December 31, 2021 Level 1 Level 2 Level 3 Total (In millions) Fixed maturity securities: Corporate bonds and other $ 140 $ 23,768 $ 937 $ 24,845 States, municipalities and political subdivisions 11,887 56 11,943 Asset-backed 7,029 556 7,585 Fixed maturities available-for-sale 140 42,684 1,549 44,373 Fixed maturities trading 7 7 Total fixed maturities $ 140 $ 42,691 $ 1,549 $ 44,380 Equity securities $ 924 $ 721 $ 29 $ 1,674 Short term and other 4,696 74 4,770 Payable to brokers (70) (70) The following tables present reconciliations for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2022 and 2021: Net Realized Investment Gains (Losses) and Net Change in Unrealized Investment Gains (Losses) Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at March 31 Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at March 31 2022 Balance, January 1 Included in Net Income Included in OCI Purchases Sales Settlements Transfers into Transfers out of Level 3 Balance, March 31 (In millions) Fixed maturity securities: Corporate bonds and other $ 937 $ (1) $ (71) $ 67 $ (5) $ (22) $ 10 $ 915 $ (72) States, municipalities and political subdivisions 56 (5) 51 (5) Asset-backed 556 3 (32) 140 (17) 5 $ (51) 604 (31) Fixed maturities available-for-sale 1,549 2 (108) 207 (5) (39) 15 (51) 1,570 $ — (108) Fixed maturities trading — — Total fixed maturities $ 1,549 $ 2 $ (108) $ 207 $ (5) $ (39) $ 15 $ (51) $ 1,570 $ — $ (108) Equity securities $ 29 $ 3 $ 12 $ 44 $ 3 Net Realized Investment Gains (Losses) and Net Change in Unrealized Investment Gains (Losses) Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at March 31 Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at March 31 2021 Balance, January 1 Included in Net Income Included in OCI Purchases Sales Settlements Transfers into Transfers out of Level 3 Balance, March 31 (In millions) Fixed maturity securities: Corporate bonds and other $ 770 $ (13) $ (40) $ 42 $ (2) $ 10 $ 767 $ (40) States, municipalities and political subdivisions 46 (2) 44 (2) Asset-backed 308 2 (9) 30 (17) 9 $ (8) 315 (9) Fixed maturities available-for-sale 1,124 (11) (51) 72 $ — (19) 19 (8) 1,126 $ — (51) Fixed maturities trading 8 (3) 5 (3) Total fixed maturities $ 1,132 $ (14) $ (51) $ 72 $ — $ (19) $ 19 $ (8) $ 1,131 $ (3) $ (51) Equity securities $ 43 $ 2 $ 45 $ 2 Net investment gains and losses are reported in Net income as follows: Major Category of Assets and Liabilities Consolidated Condensed Statements of Operations Line Items Fixed maturity securities available-for-sale Investment gains (losses) Fixed maturity securities trading Net investment income Equity securities Investment gains (losses) and Net investment income Other invested assets Investment gains (losses) and Net investment income Derivative financial instruments held in a trading portfolio Net investment income Derivative financial instruments, other Investment gains (losses) and Operating revenues and other Significant Unobservable Inputs The following tables present quantitative information about the significant unobservable inputs utilized in the fair value measurement 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 unobservable inputs from these broker quotes is neither provided nor reasonably available. The weighted average rate is calculated based on fair value. March 31, 2022 Estimated Valuation Techniques Unobservable Inputs Range (Weighted Average) (In millions) Fixed maturity securities $ 1,198 Discounted cash flow Credit spread 1% — 7% (3%) December 31, 2021 Fixed maturity securities $ 1,225 Discounted cash flow Credit spread 1% — 7% (2%) 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, estimated fair value and the level of the fair value hierarchy of the financial assets and liabilities which are not measured at fair value on the Consolidated Condensed Balance Sheets are presented in the following tables. The carrying amounts and estimated fair values of short term debt and long term debt exclude finance lease obligations. The carrying amounts reported on the Consolidated Condensed Balance Sheets for cash and short term investments not carried at fair value and certain other assets and liabilities approximate fair value due to the short term nature of these items. Carrying Amount Estimated Fair Value March 31, 2022 Level 1 Level 2 Level 3 Total (In millions) Assets: Other invested assets, primarily mortgage loans $ 942 $ 940 $ 940 Liabilities: Short term debt 392 $ 302 93 395 Long term debt 8,878 8,469 606 9,075 December 31, 2021 Assets: Other invested assets, primarily mortgage loans $ 973 $ 1,018 $ 1,018 Liabilities: Short term debt 93 93 93 Long term debt 8,981 $ 9,170 611 9,781 |
Claim and Claim Adjustment Expe
Claim and Claim Adjustment Expense Reserves | 3 Months Ended |
Mar. 31, 2022 | |
Insurance [Abstract] | |
Claim and Claim Adjustment Expense Reserves | Claim and Claim Adjustment Expense Reserves Property and casualty insurance claim and claim adjustment expense reserves represent the estimated amounts necessary to resolve all outstanding claims, including incurred but not reported (“IBNR”) claims as of the reporting date. Reserve projections are based primarily on detailed analysis of the facts in each case, 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 ultimate cost for insurance losses will not exceed current estimates. Catastrophes are an inherent risk of the property and casualty insurance business and have contributed to material period-to-period fluctuations in the Company’s results of operations and/or equity. The Company reported catastrophe losses, net of reinsurance, of $19 million and $125 million for the three months ended March 31, 2022 and 2021. Catastrophe losses for the three months ended March 31, 2022 were primarily related to severe weather related events. Catastrophe losses for the three months ended March 31, 2021 were primarily driven by Winter Storms Uri and Viola. Liability for Unpaid Claim and Claim Adjustment Expenses The following table presents a reconciliation between beginning and ending claim and claim adjustment expense reserves, including claim and claim adjustment expense reserves of Other Insurance Operations. Three Months Ended March 31 2022 2021 (In millions) Reserves, beginning of year: Gross $ 24,174 $ 22,706 Ceded 4,969 4,005 Net reserves, beginning of year 19,205 18,701 Reduction of net reserves due to the excess workers’ compensation loss portfolio transfer (632) Net incurred claim and claim adjustment expenses: Provision for insured events of current year 1,448 1,474 Increase (decrease) in provision for insured events of prior years (45) (54) Amortization of discount 47 50 Total net incurred (a) 1,450 1,470 Net payments attributable to: Current year events (70) (85) Prior year events (1,147) (1,067) Total net payments (1,217) (1,152) Foreign currency translation adjustment and other (92) (32) Net reserves, end of period 19,346 18,355 Ceded reserves, end of period 5,002 4,701 Gross reserves, end of period $ 24,348 $ 23,056 (a) Total net incurred above does not agree to Insurance claims and policyholders’ benefits as reflected on the Consolidated Condensed Statements of Operations due to amounts related to retroactive reinsurance deferred gain accounting, the loss on the excess workers’ compensation loss portfolio transfer, uncollectible reinsurance and benefit expenses related to future policy benefits, which are not reflected in the table above. 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. These changes can be favorable or unfavorable. Favorable net prior year development of $12 million and $15 million were recorded for commercial property and casualty operations (“Property & Casualty Operations”) for the three months ended March 31, 2022 and 2021. The following table and discussion presents details of the net prior year loss reserve development in Property & Casualty Operations: Three Months Ended March 31 2022 2021 (In millions) Medical professional liability $ 8 $ 8 Surety (9) (15) Workers’ compensation (2) Property and other (9) (8) Total pretax (favorable) unfavorable development $ (12) $ (15) 2021 Favorable development in surety was primarily due to lower than expected frequency and lack of systemic activity in recent accident years. Asbestos & Environmental Pollution (“A&EP”) Reserves In 2010, Continental Casualty Company (“CCC”) together with several insurance subsidiaries completed a transaction with National Indemnity Company (“NICO”), a subsidiary of Berkshire Hathaway Inc., under which substantially all of their legacy A&EP liabilities were ceded to NICO through a loss portfolio transfer (“LPT”). At the effective date of the transaction, approximately $1.6 billion of net A&EP claim and allocated claim adjustment expense reserves were ceded to NICO under a retroactive reinsurance agreement with an aggregate limit of $4.0 billion. The $1.6 billion of claim and allocated claim adjustment expense reserves ceded to NICO was net of $1.2 billion of ceded claim and allocated claim adjustment expense reserves under existing third party reinsurance contracts. The NICO LPT aggregate reinsurance limit also covers credit risk on the existing third party reinsurance related to these liabilities. NICO was paid a reinsurance premium of $2.0 billion and billed third party reinsurance receivables related to A&EP claims with a net book value of $215 million were transferred to NICO, resulting in total consideration of $2.2 billion. In years subsequent to the effective date of the LPT, adverse prior year development on A&EP reserves was recognized resulting in additional amounts ceded under the LPT. As a result, the cumulative amounts ceded under the LPT have exceeded the $2.2 billion consideration paid, resulting in the NICO LPT moving into a gain position, requiring retroactive reinsurance accounting. Under retroactive reinsurance accounting, this gain is deferred and only recognized in earnings in proportion to actual paid recoveries under the LPT. Over the life of the contract, there is no economic impact as long as any additional losses incurred are within the limit of the LPT. In a period in which a change in the estimate of A&EP reserves is recognized that increases or decreases the amounts ceded under the LPT, the proportion of actual paid recoveries to total ceded losses is affected and the change in the deferred gain is recognized in earnings as if the revised estimate of ceded losses was available at the effective date of the LPT. The effect of the deferred retroactive reinsurance benefit is recorded in Insurance claims and policyholders’ benefits on the Consolidated Condensed Statements of Operations. The impact of the LPT on the Consolidated Condensed Statements of Operations was the recognition of a retroactive reinsurance benefit of $12 million and $10 million for the three months ended March 31, 2022 and 2021 . As of March 31, 2022 and December 31, 2021, the cumulative amounts ceded under the LPT were $3.4 billion. The unrecognized deferred retroactive reinsurance benefit was $417 million and $429 million as of March 31, 2022 and December 31, 2021 and is included within Other liabilities on the Consolidated Condensed Balance Sheets. NICO established a collateral trust account as security for its obligations under the LPT. The fair value of the collateral trust account was $3.1 billion as of March 31, 2022. In addition, Berkshire Hathaway Inc. guaranteed the payment obligations of NICO up to the aggregate reinsurance limit as well as certain of NICO’s performance obligations under the trust agreement. NICO is responsible for claims handling and billing and collection from third-party reinsurers related to the majority of the A&EP claims. Credit Risk for Ceded Reserves The majority of CNA’s outstanding voluntary reinsurance receivables are due from reinsurers with financial strength ratings of A- or higher. Receivables due from reinsurers with lower financial strength ratings are primarily due from captive reinsurers and are backed by collateral arrangements. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | DebtIn February of 2022, Boardwalk Pipelines completed a public offering of $500 million aggregate principal amount of its 3.6% senior notes due September 1, 2032. Boardwalk Pipelines used the proceeds to retire the outstanding $300 million aggregate principal amount of its 4.0% senior notes due June 2022 in March of 2022, to fund growth capital expenditures and for general corporate purposes. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Accumulated other comprehensive income (loss) The tables below present the changes in AOCI by component for the three months ended March 31, 2021 and 2022 : Net Unrealized Gains (Losses) on Investments with an Allowance for Credit Losses Net Unrealized Gains (Losses) on Other Investments Unrealized Gains (Losses) on Cash Flow Hedges Pension and Postretirement Benefits Foreign Currency Translation Total Accumulated Other Comprehensive Income (Loss) (In millions) Balance, January 1, 2021 $ — $ 1,563 $ (23) $ (877) $ (82) $ 581 Other comprehensive income (loss) before reclassifications, after tax of $1, $154, $(2), $0 and $0 (3) (593) 3 3 (590) Reclassification of (gains) losses from accumulated other comprehensive income, after tax of $(1), $8, $(1), $(2) and $0 3 (34) 1 9 (21) Other comprehensive income (loss) — (627) 4 9 3 (611) Amounts attributable to noncontrolling interests 66 (1) (1) 64 Balance, March 31, 2021 $ — $ 1,002 $ (19) $ (869) $ (80) $ 34 Balance, January 1, 2022 $ (2) $ 930 $ (6) $ (636) $ (100) $ 186 Other comprehensive income (loss) before reclassifications, after tax of $1, $425, $(2), $(2) and $0 (4) (1,612) 15 2 (15) (1,614) Reclassification of losses from accumulated other comprehensive loss, after tax of $0, $(1), $(1), $(2) and $0 1 3 5 9 Other comprehensive income (loss) (4) (1,611) 18 7 (15) (1,605) Amounts attributable to noncontrolling interests 168 (1) 1 168 Balance, March 31, 2022 $ (6) $ (513) $ 12 $ (630) $ (114) $ (1,251) Amounts reclassified from AOCI shown above are reported in Net income (loss) as follows: Major Category of AOCI Affected Line Item Net unrealized gains (losses) on investments with an allowance for credit losses and Net unrealized gains (losses) on other investments Investment gains (losses) Unrealized gains (losses) on cash flow hedges Operating revenues and other, Interest expense and Operating expenses and other Pension and postretirement benefits Operating expenses and other |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Disaggregation of revenues – Revenue from contracts with customers, other than insurance premiums, is reported as Non-insurance warranty revenue and within Operating revenues and other on the Consolidated Condensed Statements of Operations. The following table presents revenues from contracts with customers disaggregated by revenue type along with the reportable segment and a reconciliation to Operating revenues and other as reported in Note 11: Three Months Ended March 31 2022 2021 (In millions) Non-insurance warranty – CNA Financial $ 382 $ 338 Transportation and storage of natural gas and NGLs and other services – Boardwalk Pipelines $ 370 $ 361 Lodging and related services – Loews Hotels & Co 146 56 Rigid plastic packaging and recycled resin – Corporate (a) 280 Total revenues from contracts with customers 516 697 Other revenues 24 18 Operating revenues and other $ 540 $ 715 (a) Revenues reflect the consolidated results of Altium Packaging for the three months ended March 31, 2021. Receivables from contracts with customers – As of March 31, 2022 and December 31, 2021, receivables from contracts with customers were approximately $149 million and $145 million and are included within Receivables on the Consolidated Condensed Balance Sheets. Deferred revenue – As of March 31, 2022 and December 31, 2021, deferred revenue resulting from contracts with customers was approximately $4.6 billion and is reported as Deferred non-insurance warranty revenue and within Other liabilities on the Consolidated Condensed Balance Sheets. Approximately $374 million and $316 million of revenues recognized during the three months ended March 31, 2022 and 2021 were included in deferred revenue as of December 31, 2021 and 2020. Performance obligations – As of March 31, 2022, approximately $13.2 billion of estimated operating revenues is expected to be recognized in the future related to outstanding performance obligations. The balance relates primarily to revenues for transportation and storage services for natural gas and natural gas liquids and hydrocarbons (“NGLs”) at Boardwalk Pipelines and non-insurance warranty revenue at CNA. Approximately $1.9 billion will be recognized during the remaining nine months of 2022 , $2.2 billion in 2023 and the remainder in following years. The actual timing of recognition may vary due to factors outside of the Company’s control. |
Benefit Plans
Benefit Plans | 3 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans The Company has several non-contributory defined benefit plans and postretirement benefit plans covering eligible employees and retirees. The following table presents the components of net periodic (benefit) cost for the defined benefit plans: Pension Benefits Other Postretirement Benefits Three Months Ended March 31 2022 2021 2022 2021 (In millions) Service cost $ 1 $ 1 Interest cost 19 18 Expected return on plan assets (43) (43) $ (1) Amortization of unrecognized net loss 8 12 Settlements 1 Regulatory asset decrease 1 Net periodic benefit $ (13) $ (12) $ — $ (1) |
Legal Proceedings
Legal Proceedings | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | Legal Proceedings Boardwalk Pipelines Litigation On May 25, 2018, plaintiffs Tsemach Mishal and Paul Berger (on behalf of themselves and the purported class, “Plaintiffs”) initiated a purported class action in the Court of Chancery of the State of Delaware (the “Trial Court”) against the following defendants: Boardwalk Pipelines, Boardwalk GP, LP (“General Partner”), Boardwalk GP, LLC and Boardwalk Pipelines Holding Corp. (“BPHC”) (together, “Defendants”), regarding the potential exercise by the General Partner of its right to purchase all of the issued and outstanding common units representing limited partnership interests in Boardwalk Pipelines not already owned by the General Partner or its affiliates. On June 25, 2018, Plaintiffs and Defendants entered into a Stipulation and Agreement of Compromise and Settlement, subject to the approval of the Trial Court (the “Proposed Settlement”). Under the terms of the Proposed Settlement, the lawsuit would be dismissed, and related claims against the Defendants would be released by the Plaintiffs, if BPHC, the sole member of the General Partner, elected to cause the General Partner to exercise its right to purchase the issued and outstanding common units of Boardwalk Pipelines pursuant to Boardwalk Pipelines’ Third Amended and Restated Agreement of Limited Partnership, as amended (“Limited Partnership Agreement”), within a period specified by the Proposed Settlement. On June 29, 2018, the General Partner elected to exercise its right to purchase all of the issued and outstanding common units representing limited partnership interests in Boardwalk Pipelines not already owned by the General Partner or its affiliates pursuant to the Limited Partnership Agreement within the period specified by the Proposed Settlement. The transaction was completed on July 18, 2018. On September 28, 2018, the Trial Court denied approval of the Proposed Settlement. On February 11, 2019, a substitute verified class action complaint was filed in this proceeding, which among other things, added the Parent Company as a Defendant. The Defendants filed a motion to dismiss, which was heard by the Trial Court in July of 2019. In October of 2019, the Trial Court ruled on the motion and granted a partial dismissal, with certain aspects of the case proceeding to trial. A trial was held the week of February 22, 2021 and post-trial oral arguments were held on July 14, 2021. On November 12, 2021, the Trial Court issued a ruling in the case. The Trial Court held that the General Partner breached the Limited Partnership Agreement and awarded Plaintiffs approximately $690 million, plus pre-judgment interest (approximately $166 million), post-judgment interest and attorneys’ fees. The Company believes that the Trial Court ruling includes factual and legal errors. Therefore on January 3, 2022, the Defendants appealed the Trial Court’s ruling to the Supreme Court of the State of Delaware (the “Supreme Court”). On January 17, 2022, the Plaintiffs filed a cross-appeal to the Supreme Court contesting the calculation of damages by the Trial Court. At this time, given the Trial Court’s ruling and the pending appeals, the Company believes that it is reasonably possible that a loss has occurred, although the Company is unable to estimate any potential loss as it may range from zero up to the full amount of the Trial Court’s award of $690 million, plus pre- and post-judgment interest and attorneys’ fees, or more, depending on the extent of the Defendants’ and Plaintiffs’ success on appeal. The Company has not recorded a liability related to this matter. As litigation is inherently unpredictable, if an unfavorable final outcome occurs, there is a possibility of a material adverse impact to the Company’s consolidated financial statements in the period in which the effects become known. Other Litigation The Company is from time to time party to other litigation arising in the ordinary course of business. While it is difficult to predict the outcome or effect of any litigation, management does not believe that the outcome of any such pending litigation will materially affect the Company’s results of operations or equity. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies CNA Guarantees CNA has provided guarantees, if the primary obligor fails to perform, to holders of structured settlement annuities issued by a previously owned subsidiary. As of March 31, 2022, the potential amount of future payments CNA could be required to pay under these guarantees was approximately $1.6 billion, which will be paid over the lifetime of the annuitants. CNA does not believe any payment is likely under these guarantees, as CNA is the beneficiary of a trust that must be maintained at a level that approximates the discounted reserves for these annuities. |
Segments
Segments | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Segments | Segments Loews Corporation has four reportable segments comprised of three individual consolidated operating subsidiaries, CNA, Boardwalk Pipelines and Loews Hotels & Co; and the Corporate segment. The Corporate segment is primarily comprised of Loews Corporation, excluding its subsidiaries, the consolidated operations of Altium Packaging for the three months ended March 31, 2021 and the equity method of accounting for Altium Packaging for the three months ended March 31, 2022. Each of the operating subsidiaries is headed by a chief executive officer who is responsible for the operation of its business and has the duties and authority commensurate with that position. For additional disclosures regarding the composition of Loews Corporation’s segments, see Note 19 of the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. The following tables present the reportable segments and their contribution to the Consolidated Condensed Statements of Operations. Amounts presented will not necessarily be the same as those in the individual financial statements of the subsidiaries due to adjustments for purchase accounting, income taxes and noncontrolling interests. Statements of Operations by segment are presented in the following tables. Three Months Ended March 31, 2022 CNA Financial Boardwalk Pipelines Loews Hotels & Co Corporate Total (In millions) Revenues: Insurance premiums $ 2,059 $ 2,059 Net investment income (loss) 448 $ (16) 432 Investment losses (11) (11) Non-insurance warranty revenue 382 382 Operating revenues and other 7 $ 381 $ 152 540 Total 2,885 381 152 (16) 3,402 Expenses: Insurance claims and policyholders’ benefits 1,455 1,455 Amortization of deferred acquisition costs 344 344 Non-insurance warranty expense 354 354 Operating expenses and other 326 217 126 22 691 Interest 28 42 4 22 96 Total 2,507 259 130 44 2,940 Income (loss) before income tax 378 122 22 (60) 462 Income tax (expense) benefit (65) (31) (7) 11 (92) Net income (loss) 313 91 15 (49) 370 Amounts attributable to noncontrolling interests (32) (32) Net income (loss) attributable to Loews Corporation $ 281 $ 91 $ 15 $ (49) $ 338 Three Months Ended March 31, 2021 CNA Financial Boardwalk Pipelines Loews Hotels & Co Corporate (a) Total (In millions) Revenues: Insurance premiums $ 1,962 $ 1,962 Net investment income 504 $ 46 550 Investment losses 57 57 Non-insurance warranty revenue 338 338 Operating revenues and other 5 $ 372 $ 57 281 715 Total 2,866 372 57 327 3,622 Expenses: Insurance claims and policyholders’ benefits 1,506 1,506 Amortization of deferred acquisition costs 359 359 Non-insurance warranty expense 311 311 Operating expenses and other 285 217 104 308 914 Interest 28 41 8 48 125 Total 2,489 258 112 356 3,215 Income (loss) before income tax 377 114 (55) (29) 407 Income tax (expense) benefit (66) (29) 12 (31) (114) Net income (loss) 311 85 (43) (60) 293 Amounts attributable to noncontrolling interests (32) (32) Net income (loss) attributable to Loews Corporation $ 279 $ 85 $ (43) $ (60) $ 261 (a) Amounts include the consolidated results of Altium Packaging for the three months ended March 31, 2021. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Loews Corporation is a holding company. Its consolidated operating subsidiaries are engaged in the following lines of business: commercial property and casualty insurance (CNA Financial Corporation (“CNA”), an 89.6% owned subsidiary); transportation and storage of natural gas and natural gas liquids (Boardwalk Pipeline Partners, LP (“Boardwalk Pipelines”), a wholly owned subsidiary) and the operation of a chain of hotels (Loews Hotels Holding Corporation (“Loews Hotels & Co”), a wholly owned subsidiary). Unless the context otherwise requires, the term “Company” as used herein means Loews Corporation including its consolidated subsidiaries, the term “Parent Company” means Loews Corporation excluding its subsidiaries, the term “Net income (loss) attributable to Loews Corporation” as used herein means Net income (loss) attributable to Loews Corporation shareholders and the term “subsidiaries” means Loews Corporation’s consolidated subsidiaries. On April 1, 2021, Loews Corporation sold 47% of Altium Packaging LLC (“Altium Packaging”), previously a 99% owned subsidiary, and following the transaction Loews Corporation deconsolidated Altium Packaging. For additional information regarding the deconsolidation of Altium Packaging, see Note 2 of the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. In the opinion of management, the accompanying unaudited Consolidated Condensed Financial Statements reflect all adjustments (consisting of normal recurring accruals) necessary to present fairly the Company’s financial position as of March 31, 2022 and December 31, 2021 and results of operations, comprehensive loss and changes in shareholders’ equity and cash flows for the three months ended March 31, 2022 and 2021. Net income for the first quarter of each of the years is not necessarily indicative of net income for that entire year. These Consolidated Condensed Financial Statements should be read in conjunction with the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. |
Accounting Changes and Recently Issued ASUs | Recently issued Accounting Standards Updates (“ASUs”) – In August of 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-12 The Company will adopt the new guidance effective January 1, 2023, using the modified retrospective method applied as of the transition date of January 1, 2021. A published spot rate curve constructed from A+, A and A- rated U.S. dollar denominated corporate bonds matched to the duration of the corresponding insurance liabilities will be used to calculate discount rates. Long-duration contracts will be grouped into calendar year cohorts based on the contract issue date and product line. Long term care contracts will be grouped separately from the fully-ceded single premium immediate annuity contracts. The most significant impact at the transition date will be the effect of updating the discount rate assumption to reflect an upper-medium grade fixed-income instrument yield, which will be partially offset by the de-recognition of Shadow Adjustments associated with long-duration contracts. The Company expects the net impact of these changes will be a $2.0 billion - $2.3 billion (after tax and noncontrolling interests) decrease in Accumulated other comprehensive income (“AOCI”) as of the transition date of January 1, 2021. There is a minimal transition impact expected to retained earnings. The requirement to review, and update if there is a change, cash flow assumptions at least annually is expected to change the pattern of earnings being recognized. Adoption will also significantly expand the Company’s disclosures, and will impact systems, processes and controls. While the requirements of the new guidance represent a material change from existing accounting guidance, the new guidance will not impact capital and surplus under statutory accounting practices, cash flows, or the underlying economics of the business. The Company continues to make progress in connection with these matters and is in the process of refining key accounting policy decisions, technology solutions and updates to internal controls associated with adoption of the new guidance. These in-progress activities include modifications of actuarial valuation systems, data sourcing, analytical procedures and reporting processes. |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Net Investment Income | Net investment income is as follows: Three Months Ended March 31 2022 2021 (In millions) Fixed maturity securities $ 429 $ 428 Limited partnership investments 20 47 Equity securities 2 29 Income (loss) from trading portfolio (a) (15) 50 Other 15 16 Total investment income 451 570 Investment expenses (19) (20) Net investment income $ 432 $ 550 (a) During the three months ended March 31, 2022 and 2021, $(31) and $32 of net investment income (loss) was recognized due to the change in fair value of securities still held as of March 31, 2022 and 2021. |
Investment Gains (Losses) | Investment gains (losses) are as follows: Three Months Ended March 31 2022 2021 (In millions) Fixed maturity securities: Gross gains $ 26 $ 58 Gross losses (28) (20) Investment gains (losses) on fixed maturity securities (2) 38 Equity securities (38) 2 Derivative instruments 29 17 Investment gains (losses) (a) $ (11) $ 57 (a) During the three months ended March 31, 2022 and 2021, $38 of investment losses and $2 of investment gains were recognized due to the change in fair value of non-redeemable preferred stock still held as of March 31, 2022 and 2021. |
Allowance for Credit Losses | Accrued interest receivables on available-for-sale fixed maturity securities totaled $389 million, $369 million and $389 million as of March 31, 2022, December 31, 2021 and March 31, 2021 and are excluded from the estimate of expected credit losses and the amortized cost basis in the tables within this Note. Three months ended March 31, 2022 Corporate and Other Bonds Asset-backed Total (In millions) Allowance for credit losses: Balance as of January 1, 2022 $ 11 $ 7 $ 18 Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period 1 (2) (1) Total allowance for credit losses $ 12 $ 5 $ 17 Three months ended March 31, 2021 Allowance for credit losses: Balance as of January 1, 2021 $ 23 $ 17 $ 40 Additions to the allowance for credit losses: Securities for which credit losses were not previously recorded 14 14 Available-for-sale securities accounted for as PCD assets 2 2 Reductions to the allowance for credit losses: Securities sold during the period (realized) 6 6 Additional decreases to the allowance for credit losses on securities that had an allowance recorded in a previous period (6) (1) (7) Total allowance for credit losses $ 27 $ 16 $ 43 |
Available-for-Sale Impairment Losses Recognized in Earnings | The components of available-for-sale impairment losses recognized in earnings by asset type are presented in the following table. The table includes losses on securities with an intention to sell and changes in the allowance for credit losses on securities since acquisition date: Three Months Ended March 31 2022 2021 (In millions) Fixed maturity securities available-for-sale: Corporate and other bonds $ 8 $ 7 Asset-backed 2 (1) Impairment losses recognized in earnings $ 10 $ 6 |
Amortized Cost and Fair Values of Fixed Maturity Securities | The amortized cost and fair values of fixed maturity securities are as follows: March 31, 2022 Cost or Amortized Cost Gross Unrealized Gross Unrealized Allowance Estimated (In millions) Fixed maturity securities: Corporate and other bonds $ 22,001 $ 1,277 $ 486 $ 12 $ 22,780 States, municipalities and political 10,516 862 319 11,059 Asset-backed: Residential mortgage-backed 2,983 25 160 2,848 Commercial mortgage-backed 2,008 13 81 1,940 Other asset-backed 2,710 11 93 5 2,623 Total asset-backed 7,701 49 334 5 7,411 U.S. Treasury and obligations of 125 5 120 Foreign government 559 3 13 549 Redeemable preferred stock 20 20 Fixed maturities available-for-sale 40,922 2,191 1,157 17 41,939 Fixed maturities trading 6 6 Total fixed maturity securities $ 40,928 $ 2,191 $ 1,157 $ 17 $ 41,945 December 31, 2021 Cost or Amortized Cost Gross Unrealized Gross Unrealized Allowance Estimated (In millions) Fixed maturity securities: Corporate and other bonds $ 21,444 $ 2,755 $ 56 $ 11 $ 24,132 States, municipalities and political 10,358 1,599 14 11,943 Asset-backed: Residential mortgage-backed 2,893 71 8 2,956 Commercial mortgage-backed 1,987 63 19 2,031 Other asset-backed 2,561 54 10 7 2,598 Total asset-backed 7,441 188 37 7 7,585 U.S. Treasury and obligations of 132 1 3 130 Foreign government 570 15 2 583 Fixed maturities available-for-sale 39,945 4,558 112 18 44,373 Fixed maturities trading 7 7 Total fixed maturity securities $ 39,952 $ 4,558 $ 112 $ 18 $ 44,380 The net unrealized gains on available-for-sale investments included in the tables above are recorded as a component of AOCI. When presented in AOCI, these amounts are net of tax and noncontrolling interests and any required Shadow Adjustments. To the extent that unrealized gains on fixed maturity securities supporting structured settlements not funded by annuities were realized, or that unrealized gains on fixed maturity securities supporting long term care products would result in a premium deficiency, or would impact the reserve balance, if realized, a related increase in Insurance reserves is recorded, net of tax and noncontrolling interests, as a reduction of net unrealized gains through Other comprehensive income (loss) (“Shadow Adjustments”). As of March 31, 2022 and December 31, 2021, the net unrealized gains on investments included in AOCI were correspondingly reduced by Shadow Adjustments of $1.3 billion and $2.2 billion (after tax and noncontrolling interests). |
Available-for-sale Securities in Gross Unrealized Loss Position | The available-for-sale securities in a gross unrealized loss position for which an allowance for credit losses has not been recorded are as follows: Less than 12 Months 12 Months or Longer Total March 31, 2022 Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses (In millions) Fixed maturity securities: Corporate and other bonds $ 7,390 $ 441 $ 327 $ 45 $ 7,717 $ 486 States, municipalities and political 2,796 314 35 5 2,831 319 Asset-backed: Residential mortgage-backed 2,315 160 2,315 160 Commercial mortgage-backed 1,274 65 151 16 1,425 81 Other asset-backed 1,717 90 67 3 1,784 93 Total asset-backed 5,306 315 218 19 5,524 334 U.S. Treasury and obligations of 94 5 5 99 5 Foreign government 327 11 26 2 353 13 Total fixed maturity securities $ 15,913 $ 1,086 $ 611 $ 71 $ 16,524 $ 1,157 December 31, 2021 Fixed maturity securities: Corporate and other bonds $ 2,389 $ 48 $ 136 $ 8 $ 2,525 $ 56 States, municipalities and political 730 14 730 14 Asset-backed: Residential mortgage-backed 1,043 8 1,043 8 Commercial mortgage-backed 527 7 167 12 694 19 Other asset-backed 840 10 62 902 10 Total asset-backed 2,410 25 229 12 2,639 37 U.S. Treasury and obligations of 69 3 5 74 3 Foreign government 97 2 97 2 Total fixed maturity securities $ 5,695 $ 92 $ 370 $ 20 $ 6,065 $ 112 The following table presents the estimated fair value and gross unrealized losses of fixed maturity securities in a gross unrealized loss position for which an allowance for credit loss has not been recorded, by ratings distribution. March 31, 2022 December 31, 2021 Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses (In millions) U.S. Government, Government agencies and Government-sponsored enterprises $ 2,095 $ 116 $ 898 $ 8 AAA 993 105 368 6 AA 2,809 269 875 17 A 3,300 205 1,516 23 BBB 6,073 392 1,812 42 Non-investment grade 1,254 70 596 16 Total $ 16,524 $ 1,157 $ 6,065 $ 112 |
Available-for-sale Fixed Maturity Securities by Contractual Maturity | The following table presents available-for-sale fixed maturity securities by contractual maturity. March 31, 2022 December 31, 2021 Cost or Amortized Cost Estimated Fair Cost or Amortized Cost Estimated (In millions) Due in one year or less $ 1,533 $ 1,546 $ 1,603 $ 1,624 Due after one year through five years 10,206 10,337 10,637 11,229 Due after five years through ten years 14,040 14,032 13,294 14,338 Due after ten years 15,143 16,024 14,411 17,182 Total $ 40,922 $ 41,939 $ 39,945 $ 44,373 |
Amortized Cost Basis of Mortgage Loans for Each Credit Quality Indicator by Year of Origination | The following table presents the amortized cost basis of mortgage loans for each credit quality indicator by year of origination. The primary credit quality indicators utilized are debt service coverage ratios (“DSCR”) and loan-to-value (“LTV”) ratios. Mortgage Loans Amortized Cost Basis by Origination Year (a) As of March 31, 2022 2022 2021 2020 2019 2018 Prior Total (In millions) DSCR ≥1.6x LTV less than 55% $ 9 $ 94 $ 21 $ 54 $ 247 $ 425 LTV 55% to 65% 5 19 8 24 56 LTV greater than 65% $ 18 11 29 DSCR 1.2x - 1.6x LTV less than 55% 13 14 95 10 56 188 LTV 55% to 65% 21 36 24 8 89 LTV greater than 65% — DSCR ≤1.2x LTV less than 55% 52 30 82 LTV 55% to 65% 55 55 LTV greater than 65% 21 6 7 34 Total $ 39 $ 95 $ 151 $ 237 $ 64 $ 372 $ 958 (a) The values in the table above reflect DSCR on a standardized amortization period and LTV ratios based on the most recent appraised values trended forward using changes in a commercial real estate price index. |
Aggregate Contractual or Notional Amounts and Estimated Fair Values Related to Derivative Financial Instruments | March 31, 2022 December 31, 2021 Contractual/Notional Amount Estimated Fair Value Contractual/Notional Amount Estimated Fair Value Asset (Liability) Asset (Liability) (In millions) Without hedge designation: Equity markets: Options – purchased $ 76 $ 1 Futures – short 103 1 Interest rate swaps 240 10 $ 100 Forward commitments for mortgage-backed securities 45 Currency forwards 13 Embedded derivative on funds withheld liability 268 16 270 $ (12) |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized in the following tables. Corporate bonds and other includes obligations of the U.S. Treasury, government-sponsored enterprises, foreign governments and redeemable preferred stock. March 31, 2022 Level 1 Level 2 Level 3 Total (In millions) Fixed maturity securities: Corporate bonds and other $ 129 $ 22,425 $ 915 $ 23,469 States, municipalities and political subdivisions 11,008 51 11,059 Asset-backed 6,807 604 7,411 Fixed maturities available-for-sale 129 40,240 1,570 41,939 Fixed maturities trading 6 6 Total fixed maturities $ 129 $ 40,246 $ 1,570 $ 41,945 Equity securities $ 788 $ 683 $ 44 $ 1,515 Short term and other 4,530 30 4,560 Receivables 12 12 Payable to brokers (96) (96) December 31, 2021 Level 1 Level 2 Level 3 Total (In millions) Fixed maturity securities: Corporate bonds and other $ 140 $ 23,768 $ 937 $ 24,845 States, municipalities and political subdivisions 11,887 56 11,943 Asset-backed 7,029 556 7,585 Fixed maturities available-for-sale 140 42,684 1,549 44,373 Fixed maturities trading 7 7 Total fixed maturities $ 140 $ 42,691 $ 1,549 $ 44,380 Equity securities $ 924 $ 721 $ 29 $ 1,674 Short term and other 4,696 74 4,770 Payable to brokers (70) (70) |
Reconciliations of Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs | The following tables present reconciliations for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2022 and 2021: Net Realized Investment Gains (Losses) and Net Change in Unrealized Investment Gains (Losses) Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at March 31 Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at March 31 2022 Balance, January 1 Included in Net Income Included in OCI Purchases Sales Settlements Transfers into Transfers out of Level 3 Balance, March 31 (In millions) Fixed maturity securities: Corporate bonds and other $ 937 $ (1) $ (71) $ 67 $ (5) $ (22) $ 10 $ 915 $ (72) States, municipalities and political subdivisions 56 (5) 51 (5) Asset-backed 556 3 (32) 140 (17) 5 $ (51) 604 (31) Fixed maturities available-for-sale 1,549 2 (108) 207 (5) (39) 15 (51) 1,570 $ — (108) Fixed maturities trading — — Total fixed maturities $ 1,549 $ 2 $ (108) $ 207 $ (5) $ (39) $ 15 $ (51) $ 1,570 $ — $ (108) Equity securities $ 29 $ 3 $ 12 $ 44 $ 3 Net Realized Investment Gains (Losses) and Net Change in Unrealized Investment Gains (Losses) Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at March 31 Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at March 31 2021 Balance, January 1 Included in Net Income Included in OCI Purchases Sales Settlements Transfers into Transfers out of Level 3 Balance, March 31 (In millions) Fixed maturity securities: Corporate bonds and other $ 770 $ (13) $ (40) $ 42 $ (2) $ 10 $ 767 $ (40) States, municipalities and political subdivisions 46 (2) 44 (2) Asset-backed 308 2 (9) 30 (17) 9 $ (8) 315 (9) Fixed maturities available-for-sale 1,124 (11) (51) 72 $ — (19) 19 (8) 1,126 $ — (51) Fixed maturities trading 8 (3) 5 (3) Total fixed maturities $ 1,132 $ (14) $ (51) $ 72 $ — $ (19) $ 19 $ (8) $ 1,131 $ (3) $ (51) Equity securities $ 43 $ 2 $ 45 $ 2 Net investment gains and losses are reported in Net income as follows: Major Category of Assets and Liabilities Consolidated Condensed Statements of Operations Line Items Fixed maturity securities available-for-sale Investment gains (losses) Fixed maturity securities trading Net investment income Equity securities Investment gains (losses) and Net investment income Other invested assets Investment gains (losses) and Net investment income Derivative financial instruments held in a trading portfolio Net investment income Derivative financial instruments, other Investment gains (losses) and Operating revenues and other |
Significant Unobservable Inputs | The following tables present quantitative information about the significant unobservable inputs utilized in the fair value measurement 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 unobservable inputs from these broker quotes is neither provided nor reasonably available. The weighted average rate is calculated based on fair value. March 31, 2022 Estimated Valuation Techniques Unobservable Inputs Range (Weighted Average) (In millions) Fixed maturity securities $ 1,198 Discounted cash flow Credit spread 1% — 7% (3%) December 31, 2021 Fixed maturity securities $ 1,225 Discounted cash flow Credit spread 1% — 7% (2%) |
Financial Assets and Liabilities Not Measured at Fair Value | The carrying amount, estimated fair value and the level of the fair value hierarchy of the financial assets and liabilities which are not measured at fair value on the Consolidated Condensed Balance Sheets are presented in the following tables. The carrying amounts and estimated fair values of short term debt and long term debt exclude finance lease obligations. The carrying amounts reported on the Consolidated Condensed Balance Sheets for cash and short term investments not carried at fair value and certain other assets and liabilities approximate fair value due to the short term nature of these items. Carrying Amount Estimated Fair Value March 31, 2022 Level 1 Level 2 Level 3 Total (In millions) Assets: Other invested assets, primarily mortgage loans $ 942 $ 940 $ 940 Liabilities: Short term debt 392 $ 302 93 395 Long term debt 8,878 8,469 606 9,075 December 31, 2021 Assets: Other invested assets, primarily mortgage loans $ 973 $ 1,018 $ 1,018 Liabilities: Short term debt 93 93 93 Long term debt 8,981 $ 9,170 611 9,781 |
Claim and Claim Adjustment Ex_2
Claim and Claim Adjustment Expense Reserves (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Insurance [Abstract] | |
Reconciliation of Claim and Claim Adjustment Expense Reserves | The following table presents a reconciliation between beginning and ending claim and claim adjustment expense reserves, including claim and claim adjustment expense reserves of Other Insurance Operations. Three Months Ended March 31 2022 2021 (In millions) Reserves, beginning of year: Gross $ 24,174 $ 22,706 Ceded 4,969 4,005 Net reserves, beginning of year 19,205 18,701 Reduction of net reserves due to the excess workers’ compensation loss portfolio transfer (632) Net incurred claim and claim adjustment expenses: Provision for insured events of current year 1,448 1,474 Increase (decrease) in provision for insured events of prior years (45) (54) Amortization of discount 47 50 Total net incurred (a) 1,450 1,470 Net payments attributable to: Current year events (70) (85) Prior year events (1,147) (1,067) Total net payments (1,217) (1,152) Foreign currency translation adjustment and other (92) (32) Net reserves, end of period 19,346 18,355 Ceded reserves, end of period 5,002 4,701 Gross reserves, end of period $ 24,348 $ 23,056 (a) Total net incurred above does not agree to Insurance claims and policyholders’ benefits as reflected on the Consolidated Condensed Statements of Operations due to amounts related to retroactive reinsurance deferred gain accounting, the loss on the excess workers’ compensation loss portfolio transfer, uncollectible reinsurance and benefit expenses related to future policy benefits, which are not reflected in the table above. |
Net Prior Year Loss Reserve Development in Property and Casualty Operations | The following table and discussion presents details of the net prior year loss reserve development in Property & Casualty Operations: Three Months Ended March 31 2022 2021 (In millions) Medical professional liability $ 8 $ 8 Surety (9) (15) Workers’ compensation (2) Property and other (9) (8) Total pretax (favorable) unfavorable development $ (12) $ (15) |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income | The tables below present the changes in AOCI by component for the three months ended March 31, 2021 and 2022 : Net Unrealized Gains (Losses) on Investments with an Allowance for Credit Losses Net Unrealized Gains (Losses) on Other Investments Unrealized Gains (Losses) on Cash Flow Hedges Pension and Postretirement Benefits Foreign Currency Translation Total Accumulated Other Comprehensive Income (Loss) (In millions) Balance, January 1, 2021 $ — $ 1,563 $ (23) $ (877) $ (82) $ 581 Other comprehensive income (loss) before reclassifications, after tax of $1, $154, $(2), $0 and $0 (3) (593) 3 3 (590) Reclassification of (gains) losses from accumulated other comprehensive income, after tax of $(1), $8, $(1), $(2) and $0 3 (34) 1 9 (21) Other comprehensive income (loss) — (627) 4 9 3 (611) Amounts attributable to noncontrolling interests 66 (1) (1) 64 Balance, March 31, 2021 $ — $ 1,002 $ (19) $ (869) $ (80) $ 34 Balance, January 1, 2022 $ (2) $ 930 $ (6) $ (636) $ (100) $ 186 Other comprehensive income (loss) before reclassifications, after tax of $1, $425, $(2), $(2) and $0 (4) (1,612) 15 2 (15) (1,614) Reclassification of losses from accumulated other comprehensive loss, after tax of $0, $(1), $(1), $(2) and $0 1 3 5 9 Other comprehensive income (loss) (4) (1,611) 18 7 (15) (1,605) Amounts attributable to noncontrolling interests 168 (1) 1 168 Balance, March 31, 2022 $ (6) $ (513) $ 12 $ (630) $ (114) $ (1,251) |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents revenues from contracts with customers disaggregated by revenue type along with the reportable segment and a reconciliation to Operating revenues and other as reported in Note 11: Three Months Ended March 31 2022 2021 (In millions) Non-insurance warranty – CNA Financial $ 382 $ 338 Transportation and storage of natural gas and NGLs and other services – Boardwalk Pipelines $ 370 $ 361 Lodging and related services – Loews Hotels & Co 146 56 Rigid plastic packaging and recycled resin – Corporate (a) 280 Total revenues from contracts with customers 516 697 Other revenues 24 18 Operating revenues and other $ 540 $ 715 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
Net Periodic (Benefit) Cost Components | The following table presents the components of net periodic (benefit) cost for the defined benefit plans: Pension Benefits Other Postretirement Benefits Three Months Ended March 31 2022 2021 2022 2021 (In millions) Service cost $ 1 $ 1 Interest cost 19 18 Expected return on plan assets (43) (43) $ (1) Amortization of unrecognized net loss 8 12 Settlements 1 Regulatory asset decrease 1 Net periodic benefit $ (13) $ (12) $ — $ (1) |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Statements of Operations by segment are presented in the following tables. Three Months Ended March 31, 2022 CNA Financial Boardwalk Pipelines Loews Hotels & Co Corporate Total (In millions) Revenues: Insurance premiums $ 2,059 $ 2,059 Net investment income (loss) 448 $ (16) 432 Investment losses (11) (11) Non-insurance warranty revenue 382 382 Operating revenues and other 7 $ 381 $ 152 540 Total 2,885 381 152 (16) 3,402 Expenses: Insurance claims and policyholders’ benefits 1,455 1,455 Amortization of deferred acquisition costs 344 344 Non-insurance warranty expense 354 354 Operating expenses and other 326 217 126 22 691 Interest 28 42 4 22 96 Total 2,507 259 130 44 2,940 Income (loss) before income tax 378 122 22 (60) 462 Income tax (expense) benefit (65) (31) (7) 11 (92) Net income (loss) 313 91 15 (49) 370 Amounts attributable to noncontrolling interests (32) (32) Net income (loss) attributable to Loews Corporation $ 281 $ 91 $ 15 $ (49) $ 338 Three Months Ended March 31, 2021 CNA Financial Boardwalk Pipelines Loews Hotels & Co Corporate (a) Total (In millions) Revenues: Insurance premiums $ 1,962 $ 1,962 Net investment income 504 $ 46 550 Investment losses 57 57 Non-insurance warranty revenue 338 338 Operating revenues and other 5 $ 372 $ 57 281 715 Total 2,866 372 57 327 3,622 Expenses: Insurance claims and policyholders’ benefits 1,506 1,506 Amortization of deferred acquisition costs 359 359 Non-insurance warranty expense 311 311 Operating expenses and other 285 217 104 308 914 Interest 28 41 8 48 125 Total 2,489 258 112 356 3,215 Income (loss) before income tax 377 114 (55) (29) 407 Income tax (expense) benefit (66) (29) 12 (31) (114) Net income (loss) 311 85 (43) (60) 293 Amounts attributable to noncontrolling interests (32) (32) Net income (loss) attributable to Loews Corporation $ 279 $ 85 $ (43) $ (60) $ 261 (a) Amounts include the consolidated results of Altium Packaging for the three months ended March 31, 2021. |
Basis of Presentation (Details)
Basis of Presentation (Details) | Mar. 31, 2022 | Apr. 01, 2021 |
Altium Packaging LLC | Discontinued Operations, Disposed of by Sale | ||
Basis of Presentation [Abstract] | ||
Percentage of equity method investments in associated companies | 47.00% | |
CNA | ||
Basis of Presentation [Abstract] | ||
Subsidiary ownership percentage | 89.60% | |
Altium Packaging LLC | ||
Basis of Presentation [Abstract] | ||
Subsidiary ownership percentage | 99.00% |
Summary of Significant Accounti
Summary of Significant Accounting Policies, Accounting Changes (Details) - USD ($) $ in Billions | Jan. 01, 2021 | Mar. 31, 2022 |
Accounting Policies [Abstract] | ||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2018-12 | |
Minimum | Accounting Standards Update 2018-12 | ||
Accounting Policies [Abstract] | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Period Increase (Decrease) | $ 2 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Period Increase (Decrease) | 2 | |
Maximum | Accounting Standards Update 2018-12 | ||
Accounting Policies [Abstract] | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Period Increase (Decrease) | 2.3 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Period Increase (Decrease) | $ 2.3 |
Investments - Net Investment In
Investments - Net Investment Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net Investment Income [Line Items] | ||
Investment income, operating | $ 451 | $ 570 |
Investment expenses | (19) | (20) |
Net investment income | 432 | 550 |
Net investment income recognized | (31) | 32 |
Fixed maturity securities | ||
Net Investment Income [Line Items] | ||
Investment income, operating | 429 | 428 |
Limited partnership investments | ||
Net Investment Income [Line Items] | ||
Gain (losses) on investments, before investment expenses | 20 | 47 |
Equity securities | ||
Net Investment Income [Line Items] | ||
Investment income, operating | 2 | 29 |
Income (loss) from trading portfolio | ||
Net Investment Income [Line Items] | ||
Gain (losses) on investments, before investment expenses | (15) | 50 |
Other | ||
Net Investment Income [Line Items] | ||
Investment income, operating | $ 15 | $ 16 |
Investments - Investment Gains
Investments - Investment Gains (Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Investment Gains (Losses) [Abstract] | ||
Investment gains (losses) | $ (11) | $ 57 |
Nonredeemable Preferred Stock | ||
Investment Gains (Losses) [Abstract] | ||
Investment gains (losses) | (38) | 2 |
Fixed maturity securities | ||
Investment Gains (Losses) [Abstract] | ||
Gross gains | 26 | 58 |
Gross losses | (28) | (20) |
Investment gains (losses) | (2) | 38 |
Equity securities | ||
Investment Gains (Losses) [Abstract] | ||
Investment gains (losses) | (38) | 2 |
Derivative instruments | ||
Investment Gains (Losses) [Abstract] | ||
Investment gains (losses) | $ 29 | $ 17 |
Investments - Allowance for Cre
Investments - Allowance for Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |||
Accrued interest receivables on available-for-sale fixed maturity securities | $ 389 | $ 389 | $ 369 |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 18 | 40 | |
Additions to allowance for securities for which credit losses were not previously recorded | 14 | ||
Additions to allowance for available-for-sale securities accounted for as PCD assets | 2 | ||
Reductions for securities sold during the period (realized) | 6 | ||
Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period | (1) | (7) | |
Total allowance for credit losses | 17 | 43 | |
Corporate and Other Bonds | |||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 11 | 23 | |
Additions to allowance for securities for which credit losses were not previously recorded | 14 | ||
Additions to allowance for available-for-sale securities accounted for as PCD assets | 2 | ||
Reductions for securities sold during the period (realized) | 6 | ||
Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period | 1 | (6) | |
Total allowance for credit losses | 12 | 27 | |
Asset-backed | |||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 7 | 17 | |
Additions to allowance for securities for which credit losses were not previously recorded | |||
Additions to allowance for available-for-sale securities accounted for as PCD assets | |||
Reductions for securities sold during the period (realized) | |||
Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period | (2) | (1) | |
Total allowance for credit losses | $ 5 | $ 16 |
Investments - Available-For-Sal
Investments - Available-For-Sale Impairment Losses Recognized in Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Available-For-Sale Impairment Losses [Abstract] | ||
(Gain) loss on mortgage loans due to changes in expected credit losses | $ 0 | |
Available-for-sale Securities | ||
Available-For-Sale Impairment Losses [Abstract] | ||
Impairment losses recognized in earnings | $ 10 | 6 |
Corporate and other bonds | Available-for-sale Securities | ||
Available-For-Sale Impairment Losses [Abstract] | ||
Impairment losses recognized in earnings | 8 | 7 |
Asset-backed | Available-for-sale Securities | ||
Available-For-Sale Impairment Losses [Abstract] | ||
Impairment losses recognized in earnings | $ 2 | $ (1) |
Investments - Amortized Cost an
Investments - Amortized Cost and Fair Values of Fixed Maturity Securities (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Amortized Cost and Fair Values of Fixed Maturity Securities [Abstract] | ||||
Cost or Amortized Cost | $ 40,928 | $ 39,952 | ||
Gross Unrealized Gains | 2,191 | 4,558 | ||
Gross Unrealized Losses | 1,157 | 112 | ||
Allowance for Credit Losses | 17 | 18 | $ 43 | $ 40 |
Estimated Fair Value | 41,945 | 44,380 | ||
Shadow adjustments | 1,300 | 2,200 | ||
Corporate and other bonds | ||||
Amortized Cost and Fair Values of Fixed Maturity Securities [Abstract] | ||||
Cost or Amortized Cost | 22,001 | 21,444 | ||
Gross Unrealized Gains | 1,277 | 2,755 | ||
Gross Unrealized Losses | 486 | 56 | ||
Allowance for Credit Losses | 12 | 11 | 27 | 23 |
Estimated Fair Value | 22,780 | 24,132 | ||
States, municipalities and political subdivisions | ||||
Amortized Cost and Fair Values of Fixed Maturity Securities [Abstract] | ||||
Cost or Amortized Cost | 10,516 | 10,358 | ||
Gross Unrealized Gains | 862 | 1,599 | ||
Gross Unrealized Losses | 319 | 14 | ||
Allowance for Credit Losses | ||||
Estimated Fair Value | 11,059 | 11,943 | ||
Residential mortgage-backed | ||||
Amortized Cost and Fair Values of Fixed Maturity Securities [Abstract] | ||||
Cost or Amortized Cost | 2,983 | 2,893 | ||
Gross Unrealized Gains | 25 | 71 | ||
Gross Unrealized Losses | 160 | 8 | ||
Allowance for Credit Losses | ||||
Estimated Fair Value | 2,848 | 2,956 | ||
Commercial mortgage-backed | ||||
Amortized Cost and Fair Values of Fixed Maturity Securities [Abstract] | ||||
Cost or Amortized Cost | 2,008 | 1,987 | ||
Gross Unrealized Gains | 13 | 63 | ||
Gross Unrealized Losses | 81 | 19 | ||
Allowance for Credit Losses | ||||
Estimated Fair Value | 1,940 | 2,031 | ||
Other asset-backed | ||||
Amortized Cost and Fair Values of Fixed Maturity Securities [Abstract] | ||||
Cost or Amortized Cost | 2,710 | 2,561 | ||
Gross Unrealized Gains | 11 | 54 | ||
Gross Unrealized Losses | 93 | 10 | ||
Allowance for Credit Losses | 5 | 7 | ||
Estimated Fair Value | 2,623 | 2,598 | ||
Asset-backed | ||||
Amortized Cost and Fair Values of Fixed Maturity Securities [Abstract] | ||||
Cost or Amortized Cost | 7,701 | 7,441 | ||
Gross Unrealized Gains | 49 | 188 | ||
Gross Unrealized Losses | 334 | 37 | ||
Allowance for Credit Losses | 5 | 7 | $ 16 | $ 17 |
Estimated Fair Value | 7,411 | 7,585 | ||
U.S. Treasury and obligations of government-sponsored enterprises | ||||
Amortized Cost and Fair Values of Fixed Maturity Securities [Abstract] | ||||
Cost or Amortized Cost | 125 | 132 | ||
Gross Unrealized Gains | 1 | |||
Gross Unrealized Losses | 5 | 3 | ||
Allowance for Credit Losses | ||||
Estimated Fair Value | 120 | 130 | ||
Foreign government | ||||
Amortized Cost and Fair Values of Fixed Maturity Securities [Abstract] | ||||
Cost or Amortized Cost | 559 | 570 | ||
Gross Unrealized Gains | 3 | 15 | ||
Gross Unrealized Losses | 13 | 2 | ||
Allowance for Credit Losses | ||||
Estimated Fair Value | 549 | 583 | ||
Fixed maturities available-for-sale | ||||
Amortized Cost and Fair Values of Fixed Maturity Securities [Abstract] | ||||
Cost or Amortized Cost | 40,922 | 39,945 | ||
Gross Unrealized Gains | 2,191 | 4,558 | ||
Gross Unrealized Losses | 1,157 | 112 | ||
Allowance for Credit Losses | 17 | 18 | ||
Estimated Fair Value | 41,939 | 44,373 | ||
Fixed maturities trading | ||||
Amortized Cost and Fair Values of Fixed Maturity Securities [Abstract] | ||||
Cost or Amortized Cost | 6 | 7 | ||
Gross Unrealized Gains | ||||
Gross Unrealized Losses | ||||
Allowance for Credit Losses | ||||
Estimated Fair Value | $ 6 | $ 7 |
Investments - Available-for-s_2
Investments - Available-for-sale Securities in Gross Unrealized Loss Position (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Gross Unrealized Losses [Abstract] | ||||
Total, Estimated Fair Value | $ 16,524 | $ 6,065 | ||
Total, Gross Unrealized Losses | 1,157 | 112 | ||
Additional impairment losses | 0 | |||
Cost or Amortized Cost | 40,928 | 39,952 | ||
Gross Unrealized Gains | 2,191 | 4,558 | ||
Gross Unrealized Losses | 1,157 | 112 | ||
Allowance for Credit Losses | 17 | 18 | $ 43 | $ 40 |
Estimated Fair Value | 41,945 | 44,380 | ||
Fixed maturity securities | ||||
Gross Unrealized Losses [Abstract] | ||||
Less than 12 Months, Estimated Fair Value | 15,913 | 5,695 | ||
Less than 12 Months, Gross Unrealized Losses | 1,086 | 92 | ||
12 Months or Longer, Estimated Fair Value | 611 | 370 | ||
12 Months or Longer, Gross Unrealized Losses | 71 | 20 | ||
Total, Estimated Fair Value | 16,524 | 6,065 | ||
Total, Gross Unrealized Losses | 1,157 | 112 | ||
Corporate and Other Bonds | ||||
Gross Unrealized Losses [Abstract] | ||||
Less than 12 Months, Estimated Fair Value | 7,390 | 2,389 | ||
Less than 12 Months, Gross Unrealized Losses | 441 | 48 | ||
12 Months or Longer, Estimated Fair Value | 327 | 136 | ||
12 Months or Longer, Gross Unrealized Losses | 45 | 8 | ||
Total, Estimated Fair Value | 7,717 | 2,525 | ||
Total, Gross Unrealized Losses | 486 | 56 | ||
Cost or Amortized Cost | 22,001 | 21,444 | ||
Gross Unrealized Gains | 1,277 | 2,755 | ||
Gross Unrealized Losses | 486 | 56 | ||
Allowance for Credit Losses | 12 | 11 | 27 | 23 |
Estimated Fair Value | 22,780 | 24,132 | ||
States, municipalities and political subdivisions | ||||
Gross Unrealized Losses [Abstract] | ||||
Less than 12 Months, Estimated Fair Value | 2,796 | 730 | ||
Less than 12 Months, Gross Unrealized Losses | 314 | 14 | ||
12 Months or Longer, Estimated Fair Value | 35 | |||
12 Months or Longer, Gross Unrealized Losses | 5 | |||
Total, Estimated Fair Value | 2,831 | 730 | ||
Total, Gross Unrealized Losses | 319 | 14 | ||
Cost or Amortized Cost | 10,516 | 10,358 | ||
Gross Unrealized Gains | 862 | 1,599 | ||
Gross Unrealized Losses | 319 | 14 | ||
Allowance for Credit Losses | ||||
Estimated Fair Value | 11,059 | 11,943 | ||
Residential mortgage-backed | ||||
Gross Unrealized Losses [Abstract] | ||||
Less than 12 Months, Estimated Fair Value | 2,315 | 1,043 | ||
Less than 12 Months, Gross Unrealized Losses | 160 | 8 | ||
12 Months or Longer, Estimated Fair Value | ||||
12 Months or Longer, Gross Unrealized Losses | ||||
Total, Estimated Fair Value | 2,315 | 1,043 | ||
Total, Gross Unrealized Losses | 160 | 8 | ||
Cost or Amortized Cost | 2,983 | 2,893 | ||
Gross Unrealized Gains | 25 | 71 | ||
Gross Unrealized Losses | 160 | 8 | ||
Allowance for Credit Losses | ||||
Estimated Fair Value | 2,848 | 2,956 | ||
Commercial mortgage-backed | ||||
Gross Unrealized Losses [Abstract] | ||||
Less than 12 Months, Estimated Fair Value | 1,274 | 527 | ||
Less than 12 Months, Gross Unrealized Losses | 65 | 7 | ||
12 Months or Longer, Estimated Fair Value | 151 | 167 | ||
12 Months or Longer, Gross Unrealized Losses | 16 | 12 | ||
Total, Estimated Fair Value | 1,425 | 694 | ||
Total, Gross Unrealized Losses | 81 | 19 | ||
Cost or Amortized Cost | 2,008 | 1,987 | ||
Gross Unrealized Gains | 13 | 63 | ||
Gross Unrealized Losses | 81 | 19 | ||
Allowance for Credit Losses | ||||
Estimated Fair Value | 1,940 | 2,031 | ||
Other asset-backed | ||||
Gross Unrealized Losses [Abstract] | ||||
Less than 12 Months, Estimated Fair Value | 1,717 | 840 | ||
Less than 12 Months, Gross Unrealized Losses | 90 | 10 | ||
12 Months or Longer, Estimated Fair Value | 67 | 62 | ||
12 Months or Longer, Gross Unrealized Losses | 3 | |||
Total, Estimated Fair Value | 1,784 | 902 | ||
Total, Gross Unrealized Losses | 93 | 10 | ||
Cost or Amortized Cost | 2,710 | 2,561 | ||
Gross Unrealized Gains | 11 | 54 | ||
Gross Unrealized Losses | 93 | 10 | ||
Allowance for Credit Losses | 5 | 7 | ||
Estimated Fair Value | 2,623 | 2,598 | ||
Total asset-backed | ||||
Gross Unrealized Losses [Abstract] | ||||
Less than 12 Months, Estimated Fair Value | 5,306 | 2,410 | ||
Less than 12 Months, Gross Unrealized Losses | 315 | 25 | ||
12 Months or Longer, Estimated Fair Value | 218 | 229 | ||
12 Months or Longer, Gross Unrealized Losses | 19 | 12 | ||
Total, Estimated Fair Value | 5,524 | 2,639 | ||
Total, Gross Unrealized Losses | 334 | 37 | ||
Cost or Amortized Cost | 7,701 | 7,441 | ||
Gross Unrealized Gains | 49 | 188 | ||
Gross Unrealized Losses | 334 | 37 | ||
Allowance for Credit Losses | 5 | 7 | $ 16 | $ 17 |
Estimated Fair Value | 7,411 | 7,585 | ||
U.S. Treasury and obligations of government-sponsored enterprises | ||||
Gross Unrealized Losses [Abstract] | ||||
Less than 12 Months, Estimated Fair Value | 94 | 69 | ||
Less than 12 Months, Gross Unrealized Losses | 5 | 3 | ||
12 Months or Longer, Estimated Fair Value | 5 | 5 | ||
12 Months or Longer, Gross Unrealized Losses | ||||
Total, Estimated Fair Value | 99 | 74 | ||
Total, Gross Unrealized Losses | 5 | 3 | ||
Cost or Amortized Cost | 125 | 132 | ||
Gross Unrealized Gains | 1 | |||
Gross Unrealized Losses | 5 | 3 | ||
Allowance for Credit Losses | ||||
Estimated Fair Value | 120 | 130 | ||
Foreign government | ||||
Gross Unrealized Losses [Abstract] | ||||
Less than 12 Months, Estimated Fair Value | 327 | 97 | ||
Less than 12 Months, Gross Unrealized Losses | 11 | 2 | ||
12 Months or Longer, Estimated Fair Value | 26 | |||
12 Months or Longer, Gross Unrealized Losses | 2 | |||
Total, Estimated Fair Value | 353 | 97 | ||
Total, Gross Unrealized Losses | 13 | 2 | ||
Cost or Amortized Cost | 559 | 570 | ||
Gross Unrealized Gains | 3 | 15 | ||
Gross Unrealized Losses | 13 | 2 | ||
Allowance for Credit Losses | ||||
Estimated Fair Value | 549 | $ 583 | ||
Redeemable preferred stock | ||||
Gross Unrealized Losses [Abstract] | ||||
Cost or Amortized Cost | 20 | |||
Gross Unrealized Gains | ||||
Gross Unrealized Losses | ||||
Allowance for Credit Losses | ||||
Estimated Fair Value | $ 20 |
Investments - Schedule of Unrea
Investments - Schedule of Unrealized Loss (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | $ 16,524 | $ 6,065 |
Gross Unrealized Losses | 1,157 | 112 |
AAA | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 993 | 368 |
Gross Unrealized Losses | 105 | 6 |
AA | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 2,809 | 875 |
Gross Unrealized Losses | 269 | 17 |
A | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 3,300 | 1,516 |
Gross Unrealized Losses | 205 | 23 |
BBB | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 6,073 | 1,812 |
Gross Unrealized Losses | 392 | 42 |
U.S. Government, Government agencies and Government-sponsored enterprises | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 2,095 | 898 |
Gross Unrealized Losses | 116 | 8 |
Non-investment grade | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 1,254 | 596 |
Gross Unrealized Losses | $ 70 | $ 16 |
Investments - Available-for-s_3
Investments - Available-for-sale Fixed Maturity Securities by Contractual Maturity (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Cost or Amortized Cost | ||
Cost or amortized cost | $ 40,928 | $ 39,952 |
Estimated Fair Value | ||
Estimated fair value | 41,945 | 44,380 |
Available-for-sale Fixed Maturities | ||
Cost or Amortized Cost | ||
Due in one year or less | 1,533 | 1,603 |
Due after one year through five years | 10,206 | 10,637 |
Due after five years through ten years | 14,040 | 13,294 |
Due after ten years | 15,143 | 14,411 |
Cost or amortized cost | 40,922 | 39,945 |
Estimated Fair Value | ||
Due in one year or less | 1,546 | 1,624 |
Due after one year through five years | 10,337 | 11,229 |
Due after five years through ten years | 14,032 | 14,338 |
Due after ten years | 16,024 | 17,182 |
Estimated fair value | $ 41,939 | $ 44,373 |
Investments - Amortized Cost Ba
Investments - Amortized Cost Basis of Mortgage Loans for Each Credit Quality Indicator by Year of Origination (Details) - Commercial mortgage-backed $ in Millions | Mar. 31, 2022USD ($) |
Credit Quality Information [Abstract] | |
2022 | $ 39 |
2021 | 95 |
2020 | 151 |
2019 | 237 |
2018 | 64 |
Prior | 372 |
Total | 958 |
DSCR Greater than or Equal to 1.6x, LTV Less than 55% | |
Credit Quality Information [Abstract] | |
2022 | |
2021 | 9 |
2020 | 94 |
2019 | 21 |
2018 | 54 |
Prior | 247 |
Total | 425 |
DSCR Greater than or Equal to 1.6x, LTV 55% to 65% | |
Credit Quality Information [Abstract] | |
2022 | |
2021 | 5 |
2020 | 19 |
2019 | 8 |
2018 | |
Prior | 24 |
Total | 56 |
DSCR Greater than or Equal to 1.6x, LTV Greater than 65% | |
Credit Quality Information [Abstract] | |
2022 | 18 |
2021 | 11 |
2020 | |
2019 | |
2018 | |
Prior | |
Total | 29 |
DSCR Between 1.2 to 1.6x, LTV Less than 55% | |
Credit Quality Information [Abstract] | |
2022 | |
2021 | 13 |
2020 | 14 |
2019 | 95 |
2018 | 10 |
Prior | 56 |
Total | 188 |
DSCR Between 1.2 to 1.6x, LTV 55% to 65% | |
Credit Quality Information [Abstract] | |
2022 | 21 |
2021 | 36 |
2020 | 24 |
2019 | |
2018 | |
Prior | 8 |
Total | 89 |
DSCR Between 1.2 to 1.6x, LTV Greater than 65% | |
Credit Quality Information [Abstract] | |
2022 | |
2021 | |
2020 | |
2019 | |
2018 | |
Prior | |
Total | 0 |
DSCR Less than or Equal to 1.2x, LTV Less than 55% | |
Credit Quality Information [Abstract] | |
2022 | |
2021 | |
2020 | |
2019 | 52 |
2018 | |
Prior | 30 |
Total | 82 |
DSCR Three, LTV 55 to 65% | |
Credit Quality Information [Abstract] | |
2022 | |
2021 | |
2020 | |
2019 | 55 |
2018 | |
Prior | |
Total | 55 |
DSCR Less than or Equal to 1.2x, LTV Greater than 65% | |
Credit Quality Information [Abstract] | |
2022 | |
2021 | 21 |
2020 | |
2019 | 6 |
2018 | |
Prior | 7 |
Total | $ 34 |
Investments - Aggregate Contrac
Investments - Aggregate Contractual or Notional Amounts and Estimated Fair Values Related to Derivative Financial Instruments (Details) - Without hedge designation - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Options – purchased | Options – purchased | ||
Gross Estimated Fair Values of Derivative Positions [Abstract] | ||
Contractual/notional amount | $ 76 | |
Asset, estimated fair value | 1 | |
Liability, estimated fair value | ||
Interest rate swaps | ||
Gross Estimated Fair Values of Derivative Positions [Abstract] | ||
Contractual/notional amount | 240 | 100 |
Asset, estimated fair value | 10 | |
Liability, estimated fair value | ||
Embedded derivative on funds withheld liability | ||
Gross Estimated Fair Values of Derivative Positions [Abstract] | ||
Contractual/notional amount | 268 | 270 |
Asset, estimated fair value | 16 | |
Liability, estimated fair value | (12) | |
Futures – short | Futures – short | ||
Gross Estimated Fair Values of Derivative Positions [Abstract] | ||
Contractual/notional amount | 103 | |
Asset, estimated fair value | 1 | |
Liability, estimated fair value | ||
Forward commitments for mortgage-backed securities | ||
Gross Estimated Fair Values of Derivative Positions [Abstract] | ||
Contractual/notional amount | 45 | |
Asset, estimated fair value | ||
Liability, estimated fair value | ||
Currency forwards | ||
Gross Estimated Fair Values of Derivative Positions [Abstract] | ||
Contractual/notional amount | 13 | |
Asset, estimated fair value | ||
Liability, estimated fair value |
Investments - Investment Commit
Investments - Investment Commitments (Details) - Investments in Assets Requiring Future Purchase, Sale or Funding Commitments $ in Millions | Mar. 31, 2022USD ($) |
Investment Commitments [Abstract] | |
Commitments to purchase or fund investments | $ 1,300 |
Commitments to sell investments | $ 65 |
Fair Value - Assets and Liabili
Fair Value - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Payable to brokers | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Liabilities | $ (96) | $ (70) |
Corporate and other bonds | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Assets | 23,469 | 24,845 |
States, municipalities and political subdivisions | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Assets | 11,059 | 11,943 |
Asset-backed | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Assets | 7,411 | 7,585 |
Fixed maturities available-for-sale | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Assets | 41,939 | 44,373 |
Fixed maturities trading | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Assets | 6 | 7 |
Fixed maturity securities | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Assets | 41,945 | 44,380 |
Equity securities | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Assets | 1,515 | 1,674 |
Short term investments and other | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Assets | 4,560 | 4,770 |
Receivables | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Assets | 12 | |
Level 1 | Payable to brokers | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Liabilities | (96) | (70) |
Level 1 | Corporate and other bonds | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Assets | 129 | 140 |
Level 1 | States, municipalities and political subdivisions | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Assets | ||
Level 1 | Asset-backed | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Assets | ||
Level 1 | Fixed maturities available-for-sale | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Assets | 129 | 140 |
Level 1 | Fixed maturities trading | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Assets | ||
Level 1 | Fixed maturity securities | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Assets | 129 | 140 |
Level 1 | Equity securities | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Assets | 788 | 924 |
Level 1 | Short term investments and other | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Assets | 4,530 | 4,696 |
Level 1 | Receivables | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Assets | ||
Level 2 | Payable to brokers | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Liabilities | ||
Level 2 | Corporate and other bonds | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Assets | 22,425 | 23,768 |
Level 2 | States, municipalities and political subdivisions | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Assets | 11,008 | 11,887 |
Level 2 | Asset-backed | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Assets | 6,807 | 7,029 |
Level 2 | Fixed maturities available-for-sale | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Assets | 40,240 | 42,684 |
Level 2 | Fixed maturities trading | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Assets | 6 | 7 |
Level 2 | Fixed maturity securities | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Assets | 40,246 | 42,691 |
Level 2 | Equity securities | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Assets | 683 | 721 |
Level 2 | Short term investments and other | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Assets | 30 | 74 |
Level 2 | Receivables | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Assets | 12 | |
Level 3 | Payable to brokers | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Liabilities | ||
Level 3 | Corporate and other bonds | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Assets | 915 | 937 |
Level 3 | States, municipalities and political subdivisions | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Assets | 51 | 56 |
Level 3 | Asset-backed | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Assets | 604 | 556 |
Level 3 | Fixed maturities available-for-sale | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Assets | 1,570 | 1,549 |
Level 3 | Fixed maturities trading | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Assets | ||
Level 3 | Fixed maturity securities | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Assets | 1,570 | 1,549 |
Level 3 | Equity securities | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Assets | 44 | 29 |
Level 3 | Short term investments and other | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Assets | ||
Level 3 | Receivables | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Assets |
Fair Value - Reconciliations of
Fair Value - Reconciliations of Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Corporate and Other Bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis, asset value | $ 915 | $ 767 | $ 937 | $ 770 |
Included in Net Income | (1) | (13) | ||
Included in OCI | (71) | (40) | ||
Purchases | 67 | 42 | ||
Sales | (5) | |||
Settlements | (22) | (2) | ||
Transfers into Level 3 | 10 | 10 | ||
Transfers out of Level 3 | ||||
Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at March 31 | ||||
Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at March 31 | (72) | (40) | ||
States, municipalities and political subdivisions | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis, asset value | 51 | 44 | 56 | 46 |
Included in Net Income | ||||
Included in OCI | (5) | (2) | ||
Purchases | ||||
Sales | ||||
Settlements | ||||
Transfers into Level 3 | ||||
Transfers out of Level 3 | ||||
Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at March 31 | ||||
Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at March 31 | (5) | (2) | ||
Total asset-backed | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis, asset value | 604 | 315 | 556 | 308 |
Included in Net Income | 3 | 2 | ||
Included in OCI | (32) | (9) | ||
Purchases | 140 | 30 | ||
Sales | ||||
Settlements | (17) | (17) | ||
Transfers into Level 3 | 5 | 9 | ||
Transfers out of Level 3 | (51) | (8) | ||
Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at March 31 | ||||
Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at March 31 | (31) | (9) | ||
Fixed maturities available-for-sale | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis, asset value | 1,570 | 1,126 | 1,549 | 1,124 |
Included in Net Income | 2 | (11) | ||
Included in OCI | (108) | (51) | ||
Purchases | 207 | 72 | ||
Sales | (5) | 0 | ||
Settlements | (39) | (19) | ||
Transfers into Level 3 | 15 | 19 | ||
Transfers out of Level 3 | (51) | (8) | ||
Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at March 31 | 0 | 0 | ||
Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at March 31 | (108) | (51) | ||
Fixed maturities trading | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis, asset value | 0 | 5 | 0 | 8 |
Included in Net Income | (3) | |||
Included in OCI | ||||
Purchases | ||||
Sales | ||||
Settlements | ||||
Transfers into Level 3 | ||||
Transfers out of Level 3 | ||||
Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at March 31 | (3) | |||
Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at March 31 | ||||
Fixed maturity securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis, asset value | 1,570 | 1,131 | 1,549 | 1,132 |
Included in Net Income | 2 | (14) | ||
Included in OCI | (108) | (51) | ||
Purchases | 207 | 72 | ||
Sales | (5) | 0 | ||
Settlements | (39) | (19) | ||
Transfers into Level 3 | 15 | 19 | ||
Transfers out of Level 3 | (51) | (8) | ||
Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at March 31 | 0 | (3) | ||
Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at March 31 | (108) | (51) | ||
Equity securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value, measurement with unobservable inputs reconciliation, recurring basis, asset value | 44 | 45 | $ 29 | $ 43 |
Included in Net Income | 3 | 2 | ||
Included in OCI | ||||
Purchases | 12 | |||
Sales | ||||
Settlements | ||||
Transfers into Level 3 | ||||
Transfers out of Level 3 | ||||
Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at March 31 | 3 | 2 | ||
Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at March 31 |
Fair Value - Significant Unobse
Fair Value - Significant Unobservable Inputs (Details) $ in Millions | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) |
Quantitative Information About the Significant Unobservable Inputs [Abstract] | ||
Estimated Fair Value | $ 41,945 | $ 44,380 |
Level 3 | Fixed maturity securities | ||
Quantitative Information About the Significant Unobservable Inputs [Abstract] | ||
Estimated Fair Value | $ 1,198 | $ 1,225 |
Debt Securities, Available-for-sale, Valuation Technique [Extensible List] | Range (Weighted Average) | Range (Weighted Average) |
Debt Securities, Available-for-sale, Measurement Input [Extensible List] | Credit spread | Credit spread |
Credit spread | Minimum | Level 3 | Fixed maturity securities | Range (Weighted Average) | ||
Quantitative Information About the Significant Unobservable Inputs [Abstract] | ||
Measurement input | 0.01 | 0.01 |
Credit spread | Maximum | Level 3 | Fixed maturity securities | Range (Weighted Average) | ||
Quantitative Information About the Significant Unobservable Inputs [Abstract] | ||
Measurement input | 0.07 | 0.07 |
Credit spread | Weighted Average | Level 3 | Fixed maturity securities | Range (Weighted Average) | ||
Quantitative Information About the Significant Unobservable Inputs [Abstract] | ||
Measurement input | 0.03 | 0.02 |
Fair Value - Financial Assets a
Fair Value - Financial Assets and Liabilities Not Measured at Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Carrying Amount | ||
Assets: | ||
Other invested assets, primarily mortgage loans | $ 942 | $ 973 |
Liabilities: | ||
Short term debt | 392 | 93 |
Long term debt | 8,878 | 8,981 |
Estimated Fair Value | ||
Assets: | ||
Other invested assets, primarily mortgage loans | 940 | 1,018 |
Liabilities: | ||
Short term debt | 395 | 93 |
Long term debt | 9,075 | 9,781 |
Estimated Fair Value | Level 1 | ||
Assets: | ||
Other invested assets, primarily mortgage loans | ||
Liabilities: | ||
Short term debt | ||
Long term debt | ||
Estimated Fair Value | Level 2 | ||
Assets: | ||
Other invested assets, primarily mortgage loans | ||
Liabilities: | ||
Short term debt | 302 | |
Long term debt | 8,469 | 9,170 |
Estimated Fair Value | Level 3 | ||
Assets: | ||
Other invested assets, primarily mortgage loans | 940 | 1,018 |
Liabilities: | ||
Short term debt | 93 | 93 |
Long term debt | $ 606 | $ 611 |
Claim and Claim Adjustment Ex_3
Claim and Claim Adjustment Expense Reserves - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Insurance [Abstract] | ||
Loss from catastrophes, net of reinsurance | $ 19 | $ 125 |
Pretax favorable development | $ (12) | $ (15) |
Claim and Claim Adjustment Ex_4
Claim and Claim Adjustment Expense Reserves - Reconciliation of Claim and Claim Adjustment Expense Reserves (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Gross reserves, beginning of year | $ 24,174 | $ 22,706 |
Ceded reserves, beginning of year | 4,969 | 4,005 |
Net reserves, beginning of year | 19,205 | 18,701 |
Net incurred claim and claim adjustment expenses [Abstract] | ||
Reduction of net reserves due to the excess workers’ compensation loss portfolio transfer | (632) | |
Provision for insured events of current year | 1,448 | 1,474 |
Increase (decrease) in provision for insured events of prior years | (45) | (54) |
Amortization of discount | 47 | 50 |
Total net incurred | 1,450 | 1,470 |
Net payments attributable to [Abstract] | ||
Current year events | (70) | (85) |
Prior year events | (1,147) | (1,067) |
Total net payments | (1,217) | (1,152) |
Foreign currency translation adjustment and other | (92) | (32) |
Net reserves, end of year | 19,346 | 18,355 |
Ceded reserves, end of year | 5,002 | 4,701 |
Gross reserves, end of year | $ 24,348 | $ 23,056 |
Claim and Claim Adjustment Ex_5
Claim and Claim Adjustment Expense Reserves - Net Prior Year Loss Reserve Development in Property and Casualty Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net Prior Year Development [Abstract] | ||
Pretax favorable development | $ 12 | $ 15 |
Medical professional liability | ||
Net Prior Year Development [Abstract] | ||
Pretax favorable development | 8 | 8 |
Surety | ||
Net Prior Year Development [Abstract] | ||
Pretax favorable development | (9) | (15) |
Workers’ compensation | ||
Net Prior Year Development [Abstract] | ||
Pretax favorable development | (2) | |
Property and other | ||
Net Prior Year Development [Abstract] | ||
Pretax favorable development | $ (9) | $ (8) |
Claim and Claim Adjustment Ex_6
Claim and Claim Adjustment Expense Reserves - A&EP Reserves (Details) - A&EP Reserves - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2010 | Dec. 31, 2021 | |
A&EP Reserves [Abstract] | ||||
Net A&EP claim and allocated claim adjustment expense reserves | $ 1,600 | |||
Aggregate limit under A&EP Loss Portfolio Transfer | 4,000 | |||
Ceded A&EP claim and allocated claim adjustment expense reserves 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 | $ 2,200 | |||
Retroactive reinsurance benefit recognized | $ 12 | $ 10 | ||
Cumulative amounts ceded under loss portfolio transfer | 3,400 | |||
Unrecognized deferred retroactive reinsurance benefit | 417 | $ 429 | ||
Fair value of collateral trust account | $ 3,100 |
Claim and Claim Adjustment Ex_7
Claim and Claim Adjustment Expense Reserves - Excess Workers' Compensation LPT (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Claims paid | $ 1,217 | $ 1,152 |
Claim and Claim Adjustment Ex_8
Claim and Claim Adjustment Expense Reserves - Net Liability for Unpaid Claims and Claims Adjustment Expenses by Line of Business (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Net Liability for Unpaid Claim and Claim Adjustment Expenses [Abstract] | ||||
Net claim and claim adjustment expenses | $ 19,346 | $ 19,205 | $ 18,355 | $ 18,701 |
Claim and Claim Adjustment Ex_9
Claim and Claim Adjustment Expense Reserves - Gross and Net Carried Reserves (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Gross and Net Carried Reserves [Abstract] | ||||
Total net carried claim and claim adjustment expense reserves | $ 19,346 | $ 19,205 | $ 18,355 | $ 18,701 |
Claim and Claim Adjustment E_10
Claim and Claim Adjustment Expense Reserves - Medical Professional Liability (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cumulative Net Paid Claim and Allocated Claim Adjustment Expenses [Abstract] | ||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2012 | $ 1,147 | $ 1,067 | ||
Total net liability for unpaid claim and claim adjustment expenses | $ 19,346 | $ 18,355 | $ 19,205 | $ 18,701 |
Claim and Claim Adjustment E_11
Claim and Claim Adjustment Expense Reserves - Other Professional Liability and Management Liability (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cumulative Net Paid Claim and Allocated Claim Adjustment Expenses [Abstract] | ||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2012 | $ 1,147 | $ 1,067 | ||
Total net liability for unpaid claim and claim adjustment expenses | $ 19,346 | $ 18,355 | $ 19,205 | $ 18,701 |
Claim and Claim Adjustment E_12
Claim and Claim Adjustment Expense Reserves - Surety (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cumulative Net Paid Claim and Allocated Claim Adjustment Expenses [Abstract] | ||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2012 | $ 1,147 | $ 1,067 | ||
Total net liability for unpaid claim and claim adjustment expenses | $ 19,346 | $ 18,355 | $ 19,205 | $ 18,701 |
Claim and Claim Adjustment E_13
Claim and Claim Adjustment Expense Reserves - Commercial Auto (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cumulative Net Paid Claim and Allocated Claim Adjustment Expenses [Abstract] | ||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2012 | $ 1,147 | $ 1,067 | ||
Total net liability for unpaid claim and claim adjustment expenses | $ 19,346 | $ 18,355 | $ 19,205 | $ 18,701 |
Claim and Claim Adjustment E_14
Claim and Claim Adjustment Expense Reserves - General Liability (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cumulative Net Paid Claim and Allocated Claim Adjustment Expenses [Abstract] | ||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2012 | $ 1,147 | $ 1,067 | ||
Total net liability for unpaid claim and claim adjustment expenses | $ 19,346 | $ 18,355 | $ 19,205 | $ 18,701 |
Claim and Claim Adjustment E_15
Claim and Claim Adjustment Expense Reserves - Workers' Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cumulative Net Paid Claim and Allocated Claim Adjustment Expenses [Abstract] | ||||
Net liability for unpaid claim and claim adjustment expenses for accident years prior to 2012 | $ 1,147 | $ 1,067 | ||
Total net liability for unpaid claim and claim adjustment expenses | $ 19,346 | $ 18,355 | $ 19,205 | $ 18,701 |
Debt - Narrative (Details)
Debt - Narrative (Details) - Transportation and storage of natural gas and NGLs and other services – Boardwalk Pipelines - USD ($) $ in Millions | Mar. 31, 2022 | Feb. 28, 2022 |
3.6 % Senior Notes Due 2032 | ||
Debt [Abstract] | ||
Face amount | $ 500 | |
Interest rate | 3.60% | |
4.0% Senior Notes Due 2022 | ||
Debt [Abstract] | ||
Face amount | $ 300 | |
Interest rate | 4.00% |
Shareholders' Equity - Componen
Shareholders' Equity - Components of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance at beginning of period | $ 19,175 | $ 19,181 |
Other comprehensive loss | (1,605) | (611) |
Amounts attributable to noncontrolling interests | ||
Balance at end of period | 17,695 | 18,537 |
Net Unrealized Gains (Losses) on Investments with an Allowance for Credit Losses | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Other comprehensive income (loss) before reclassifications, after tax | (4) | (3) |
Reclassification of (gains) losses from accumulated other comprehensive loss, after tax | 3 | |
Other comprehensive loss | (4) | 0 |
Amounts attributable to noncontrolling interests | ||
Balance at end of period | (6) | 0 |
Other comprehensive income (loss) before reclassifications, tax | 1 | 1 |
Reclassification from AOCI, current period, tax | 0 | (1) |
Net Unrealized Gains (Losses) on Other Investments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Other comprehensive income (loss) before reclassifications, after tax | (1,612) | (593) |
Reclassification of (gains) losses from accumulated other comprehensive loss, after tax | 1 | (34) |
Other comprehensive loss | (1,611) | (627) |
Amounts attributable to noncontrolling interests | 168 | 66 |
Balance at end of period | (513) | 1,002 |
Other comprehensive income (loss) before reclassifications, tax | 425 | 154 |
Reclassification from AOCI, current period, tax | (1) | 8 |
Unrealized Gains (Losses) on Cash Flow Hedges | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Other comprehensive income (loss) before reclassifications, after tax | 15 | 3 |
Reclassification of (gains) losses from accumulated other comprehensive loss, after tax | 3 | 1 |
Other comprehensive loss | 18 | 4 |
Amounts attributable to noncontrolling interests | ||
Balance at end of period | 12 | (19) |
Other comprehensive income (loss) before reclassifications, tax | (2) | (2) |
Reclassification from AOCI, current period, tax | (1) | (1) |
Pension and Postretirement Benefits | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Other comprehensive income (loss) before reclassifications, after tax | 2 | |
Reclassification of (gains) losses from accumulated other comprehensive loss, after tax | 5 | 9 |
Other comprehensive loss | 7 | 9 |
Amounts attributable to noncontrolling interests | (1) | (1) |
Balance at end of period | (630) | (869) |
Other comprehensive income (loss) before reclassifications, tax | (2) | 0 |
Reclassification from AOCI, current period, tax | (2) | (2) |
Foreign Currency Translation | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Other comprehensive income (loss) before reclassifications, after tax | (15) | 3 |
Reclassification of (gains) losses from accumulated other comprehensive loss, after tax | ||
Other comprehensive loss | (15) | 3 |
Amounts attributable to noncontrolling interests | 1 | (1) |
Balance at end of period | (114) | (80) |
Other comprehensive income (loss) before reclassifications, tax | 0 | 0 |
Reclassification from AOCI, current period, tax | 0 | 0 |
Total Accumulated Other Comprehensive Income (Loss) | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Other comprehensive income (loss) before reclassifications, after tax | (1,614) | (590) |
Reclassification of (gains) losses from accumulated other comprehensive loss, after tax | 9 | (21) |
Other comprehensive loss | (1,605) | (611) |
Amounts attributable to noncontrolling interests | 168 | 64 |
Balance at end of period | (1,251) | 34 |
Cumulative Effect, Period of Adoption, Adjusted Balance | Net Unrealized Gains (Losses) on Investments with an Allowance for Credit Losses | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (2) | 0 |
Cumulative Effect, Period of Adoption, Adjusted Balance | Net Unrealized Gains (Losses) on Other Investments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance at beginning of period | 930 | 1,563 |
Cumulative Effect, Period of Adoption, Adjusted Balance | Unrealized Gains (Losses) on Cash Flow Hedges | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (6) | (23) |
Cumulative Effect, Period of Adoption, Adjusted Balance | Pension and Postretirement Benefits | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (636) | (877) |
Cumulative Effect, Period of Adoption, Adjusted Balance | Foreign Currency Translation | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (100) | (82) |
Cumulative Effect, Period of Adoption, Adjusted Balance | Total Accumulated Other Comprehensive Income (Loss) | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance at beginning of period | $ 186 | $ 581 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Treasury Stock, Shares [Abstract] | ||
Purchases of Loews treasury stock (in shares) | 2.1 | 5.6 |
Purchases of Loews treasury stock (in usd) | $ 129 | $ 274 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenues [Abstract] | ||
Revenues from contracts with customers | $ 516 | $ 697 |
Other revenues | 24 | 18 |
Operating revenues and other | 540 | 715 |
Non-insurance warranty – CNA Financial | CNA Financial | ||
Disaggregation of Revenues [Abstract] | ||
Revenues from contracts with customers | 382 | 338 |
Transportation and storage of natural gas and NGLs and other services – Boardwalk Pipelines | Transportation and storage of natural gas and NGLs and other services – Boardwalk Pipelines | ||
Disaggregation of Revenues [Abstract] | ||
Revenues from contracts with customers | 370 | 361 |
Lodging and related services – Loews Hotels & Co | Lodging and related services – Loews Hotels & Co | ||
Disaggregation of Revenues [Abstract] | ||
Revenues from contracts with customers | 146 | 56 |
Rigid plastic packaging and recycled resin - Corporate | Rigid plastic packaging and recycled resin - Corporate | ||
Disaggregation of Revenues [Abstract] | ||
Revenues from contracts with customers | $ 280 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Disaggregation of Revenues [Abstract] | |||
Deferred revenue | $ 4,528 | $ 4,503 | |
Revenue recognized | 374 | $ 316 | |
Receivables | |||
Disaggregation of Revenues [Abstract] | |||
Receivables from contracts with customers | 149 | 145 | |
Other Liabilities | |||
Disaggregation of Revenues [Abstract] | |||
Deferred revenue | $ 4,600 | $ 4,600 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Performance Obligations (Details) $ in Billions | Mar. 31, 2022USD ($) |
Disaggregation of Revenue [Line Items] | |
Remaining performance obligations | $ 13.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |
Disaggregation of Revenue [Line Items] | |
Remaining performance obligations | $ 1.9 |
Expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Disaggregation of Revenue [Line Items] | |
Remaining performance obligations | $ 2.2 |
Expected timing of satisfaction | 1 year |
Benefit Plans, Components of Ne
Benefit Plans, Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Pension Benefits | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Service cost | $ 1 | $ 1 |
Interest cost | 19 | 18 |
Expected return on plan assets | (43) | (43) |
Amortization of unrecognized net loss | 8 | 12 |
Settlements | 1 | |
Regulatory asset decrease | 1 | |
Net periodic benefit | (13) | (12) |
Other Postretirement Benefits | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Service cost | ||
Interest cost | ||
Expected return on plan assets | (1) | |
Amortization of unrecognized net loss | ||
Settlements | ||
Regulatory asset decrease | ||
Net periodic benefit | $ 0 | $ (1) |
Legal Proceedings (Details)
Legal Proceedings (Details) $ in Millions | Nov. 12, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Trial court, plaintiff award | $ 690 |
Trial court, plaintiff award, plus pre-judgement interest | $ 166 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Billions | Mar. 31, 2022USD ($) |
CNA Financial | |
Commitments and Contingencies [Abstract] | |
Potential amount of future payments under guarantees | $ 1.6 |
Segments (Details)
Segments (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2022USD ($)SubsidiariesSegment | Mar. 31, 2021USD ($) | |
Segments [Abstract] | ||
Number of reportable segments | Segment | 4 | |
Number of individual operating subsidiaries | Subsidiaries | 3 | |
Revenues: | ||
Insurance premiums | $ 2,059 | $ 1,962 |
Net investment income (loss) | 432 | 550 |
Investment losses | (11) | 57 |
Non-insurance warranty revenue | 382 | 338 |
Operating revenues and other | 540 | 715 |
Total | 3,402 | 3,622 |
Expenses: | ||
Insurance claims and policyholders’ benefits | 1,455 | 1,506 |
Amortization of deferred acquisition costs | 344 | 359 |
Non-insurance warranty expense | 354 | 311 |
Operating expenses and other | 691 | 914 |
Interest | 96 | 125 |
Total | 2,940 | 3,215 |
Income tax expense | (92) | (114) |
Net income | 370 | 293 |
Amounts attributable to noncontrolling interests | (32) | (32) |
Net income (loss) attributable to Loews Corporation | 338 | 261 |
Operating Segments | ||
Revenues: | ||
Insurance premiums | 2,059 | 1,962 |
Net investment income (loss) | 432 | 550 |
Investment losses | (11) | 57 |
Non-insurance warranty revenue | 382 | 338 |
Operating revenues and other | 540 | 715 |
Total | 3,402 | 3,622 |
Expenses: | ||
Insurance claims and policyholders’ benefits | 1,455 | 1,506 |
Amortization of deferred acquisition costs | 344 | 359 |
Non-insurance warranty expense | 354 | 311 |
Operating expenses and other | 691 | 914 |
Interest | 96 | 125 |
Total | 2,940 | 3,215 |
Income (loss) before income tax | 462 | 407 |
Income tax expense | (92) | (114) |
Net income | 370 | 293 |
Amounts attributable to noncontrolling interests | (32) | (32) |
Net income (loss) attributable to Loews Corporation | 338 | 261 |
Operating Segments | CNA Financial | ||
Revenues: | ||
Insurance premiums | 2,059 | 1,962 |
Net investment income (loss) | 448 | 504 |
Investment losses | (11) | 57 |
Non-insurance warranty revenue | 382 | 338 |
Operating revenues and other | 7 | 5 |
Total | 2,885 | 2,866 |
Expenses: | ||
Insurance claims and policyholders’ benefits | 1,455 | 1,506 |
Amortization of deferred acquisition costs | 344 | 359 |
Non-insurance warranty expense | 354 | 311 |
Operating expenses and other | 326 | 285 |
Interest | 28 | 28 |
Total | 2,507 | 2,489 |
Income (loss) before income tax | 378 | 377 |
Income tax expense | (65) | (66) |
Net income | 313 | 311 |
Amounts attributable to noncontrolling interests | (32) | (32) |
Net income (loss) attributable to Loews Corporation | 281 | 279 |
Operating Segments | Boardwalk Pipelines | ||
Revenues: | ||
Insurance premiums | ||
Net investment income (loss) | ||
Investment losses | ||
Non-insurance warranty revenue | ||
Operating revenues and other | 381 | 372 |
Total | 381 | 372 |
Expenses: | ||
Insurance claims and policyholders’ benefits | ||
Amortization of deferred acquisition costs | ||
Non-insurance warranty expense | ||
Operating expenses and other | 217 | 217 |
Interest | 42 | 41 |
Total | 259 | 258 |
Income (loss) before income tax | 122 | 114 |
Income tax expense | (31) | (29) |
Net income | 91 | 85 |
Amounts attributable to noncontrolling interests | ||
Net income (loss) attributable to Loews Corporation | 91 | 85 |
Operating Segments | Loews Hotels & Co | ||
Revenues: | ||
Insurance premiums | ||
Net investment income (loss) | ||
Investment losses | ||
Non-insurance warranty revenue | ||
Operating revenues and other | 152 | 57 |
Total | 152 | 57 |
Expenses: | ||
Insurance claims and policyholders’ benefits | ||
Amortization of deferred acquisition costs | ||
Non-insurance warranty expense | ||
Operating expenses and other | 126 | 104 |
Interest | 4 | 8 |
Total | 130 | 112 |
Income (loss) before income tax | 22 | (55) |
Income tax expense | (7) | 12 |
Net income | 15 | (43) |
Amounts attributable to noncontrolling interests | ||
Net income (loss) attributable to Loews Corporation | 15 | (43) |
Operating Segments | Corporate | ||
Revenues: | ||
Insurance premiums | ||
Net investment income (loss) | (16) | 46 |
Investment losses | ||
Non-insurance warranty revenue | ||
Operating revenues and other | 281 | |
Total | (16) | 327 |
Expenses: | ||
Insurance claims and policyholders’ benefits | ||
Amortization of deferred acquisition costs | ||
Non-insurance warranty expense | ||
Operating expenses and other | 22 | 308 |
Interest | 22 | 48 |
Total | 44 | 356 |
Income (loss) before income tax | (60) | (29) |
Income tax expense | 11 | (31) |
Net income | (49) | (60) |
Amounts attributable to noncontrolling interests | ||
Net income (loss) attributable to Loews Corporation | $ (49) | $ (60) |