COVER
COVER - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 28, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
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 | 9 West 57th Street | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10019-2714 | |
City Area Code | 212 | |
Local Phone Number | 521-2000 | |
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Trading Symbol | L | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 225,508,650 | |
Entity Central Index Key | 0000060086 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Investments: | ||
Fixed maturities, amortized cost of $42,037 and $41,102, less allowance for credit loss of $22 and $1 | $ 38,926 | $ 37,697 |
Equity securities, cost of $1,063 and $1,161 | 1,051 | 1,139 |
Limited partnership investments | 2,020 | 1,954 |
Other invested assets, primarily mortgage loans, less allowance for credit loss of $30 and $24 | 1,088 | 1,124 |
Short term investments | 4,478 | 4,854 |
Total investments | 47,563 | 46,768 |
Cash | 463 | 532 |
Receivables | 9,926 | 9,403 |
Property, plant and equipment | 10,328 | 10,027 |
Goodwill | 347 | 346 |
Deferred non-insurance warranty acquisition expenses | 3,689 | 3,671 |
Deferred acquisition costs of insurance subsidiaries | 885 | 806 |
Other assets | 4,146 | 4,014 |
Total assets | 77,347 | 75,567 |
Insurance reserves: | ||
Claim and claim adjustment expense | 22,802 | 22,120 |
Future policy benefits | 13,666 | 13,480 |
Unearned premiums | 6,978 | 6,374 |
Total insurance reserves | 43,446 | 41,974 |
Payable to brokers | 191 | 133 |
Short term debt | 961 | 854 |
Long term debt | 8,094 | 8,165 |
Deferred income taxes | 257 | 243 |
Deferred non-insurance warranty revenue | 4,735 | 4,714 |
Other liabilities | 4,193 | 4,283 |
Total liabilities | 61,877 | 60,366 |
Commitments and contingent liabilities | ||
Shareholders' equity: | ||
Preferred stock, $0.10 par value: Authorized – 100,000,000 shares | ||
Common stock, $0.01 par value: Authorized- 1,800,000,000 shares, Issued – 236,305,517 and 236,159,866 shares | 2 | 2 |
Additional paid-in capital | 2,728 | 2,748 |
Retained earnings | 15,637 | 14,931 |
Accumulated other comprehensive loss | (3,160) | (3,320) |
Shareholders' equity before treasury stock, total | 15,207 | 14,361 |
Less treasury stock, at cost (10,194,421 and 198,875 shares) | (604) | (12) |
Total shareholders’ equity | 14,603 | 14,349 |
Noncontrolling interests | 867 | 852 |
Total equity | 15,470 | 15,201 |
Total liabilities and equity | $ 77,347 | $ 75,567 |
CONSOLIDATED CONDENSED BALANC_2
CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Investments: | ||
Fixed maturities, amortized cost | $ 42,037 | $ 41,102 |
Fixed maturities, allowance for credit loss | 22 | 1 |
Equity securities, cost | 1,063 | 1,161 |
Other invested assets, primarily mortgage loans, allowance for credit loss | $ 30 | $ 24 |
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) | 236,305,517 | 236,159,866 |
Treasury stock, shares (in shares) | 10,194,421 | 198,875 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenues: | ||||
Insurance premiums | $ 2,347 | $ 2,155 | $ 4,595 | $ 4,214 |
Net investment income | 592 | 366 | 1,161 | 798 |
Investment gains (losses) | 14 | (59) | (21) | (70) |
Non-insurance warranty revenue | 407 | 392 | 814 | 774 |
Operating revenues and other | 574 | 534 | 1,168 | 1,074 |
Total | 3,934 | 3,388 | 7,717 | 6,790 |
Expenses: | ||||
Insurance claims and policyholders’ benefits (re-measurement gain (loss) of $(33), $1, $(34), and $6) | 1,779 | 1,601 | 3,432 | 3,079 |
Amortization of deferred acquisition costs | 403 | 374 | 782 | 718 |
Non-insurance warranty expense | 384 | 367 | 768 | 721 |
Operating expenses and other | 808 | 766 | 1,589 | 1,482 |
Equity method income | (39) | (51) | (67) | (76) |
Interest | 91 | 96 | 186 | 192 |
Total | 3,426 | 3,153 | 6,690 | 6,116 |
Income before income tax | 508 | 235 | 1,027 | 674 |
Income tax expense | (120) | (48) | (235) | (135) |
Net income | 388 | 187 | 792 | 539 |
Amounts attributable to noncontrolling interests | (28) | (20) | (57) | (50) |
Net income attributable to Loews Corporation | $ 360 | $ 167 | $ 735 | $ 489 |
Basic net income per share (in dollars per share) | $ 1.58 | $ 0.68 | $ 3.19 | $ 1.98 |
Diluted net income per share (in dollars per share) | $ 1.58 | $ 0.68 | $ 3.19 | $ 1.98 |
Weighted average shares outstanding: | ||||
Shares of common stock (in shares) | 227,690 | 245,450 | 230,480 | 246,700 |
Dilutive potential shares of common stock (in shares) | 280 | 490 | 300 | 500 |
Total weighted average shares outstanding assuming dilution (in shares) | 227,970 | 245,940 | 230,780 | 247,200 |
CONSOLIDATED CONDENSED STATEM_2
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Re-measurement gain of insurance claims and policyholders’ benefits | $ (33) | $ 1 | $ (34) | $ 6 |
CONSOLIDATED CONDENSED STATEM_3
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 388 | $ 187 | $ 792 | $ 539 |
Other comprehensive income (loss), after tax | ||||
Net unrealized losses on investments with an allowance for credit losses | (1) | (2) | (9) | (6) |
Net unrealized gains (losses) on other investments | (413) | (2,226) | 257 | (4,869) |
Total unrealized gains (losses) on investments | (414) | (2,228) | 248 | (4,875) |
Impact of changes in discount rates used to measure long-duration contract liabilities | 256 | 1,507 | (140) | 3,142 |
Unrealized gains on cash flow hedges | 8 | 6 | 6 | 24 |
Pension and postretirement benefits | 6 | 5 | 15 | 12 |
Foreign currency translation | 35 | (68) | 51 | (83) |
Other comprehensive income (loss) | (109) | (778) | 180 | (1,780) |
Comprehensive income (loss) | 279 | (591) | 972 | (1,241) |
Amounts attributable to noncontrolling interests | (17) | 59 | (77) | 136 |
Total comprehensive income (loss) attributable to Loews Corporation | $ 262 | $ (532) | $ 895 | $ (1,105) |
CONSOLIDATED CONDENSED STATEM_4
CONSOLIDATED CONDENSED STATEMENTS OF EQUITY (Unaudited) - USD ($) $ in Millions | Total | As Reported | Effect of Adoption | Common Stock | Common Stock As Reported | Additional Paid-in Capital | Additional Paid-in Capital As Reported | Retained Earnings | Retained Earnings As Reported | Retained Earnings Effect of Adoption | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) As Reported | Accumulated Other Comprehensive Income (Loss) Effect of Adoption | Common Stock Held in Treasury | Common Stock Held in Treasury As Reported | Noncontrolling Interests | Noncontrolling Interests As Reported | Noncontrolling Interests Effect of Adoption |
Balance at beginning of period at Dec. 31, 2021 | $ 17,471 | $ 19,175 | $ (1,704) | $ 2 | $ 2 | $ 2,885 | $ 2,885 | $ 14,754 | $ 14,776 | $ (22) | $ (1,320) | $ 186 | $ (1,506) | $ (3) | $ (3) | $ 1,153 | $ 1,329 | $ (176) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Net income | 539 | 572 | (33) | 489 | 50 | |||||||||||||
Other comprehensive income (loss) | (1,780) | (3,010) | 1,230 | (1,594) | (186) | |||||||||||||
Dividends paid | (110) | (31) | ||||||||||||||||
Dividends paid | (79) | |||||||||||||||||
Purchase of subsidiary stock from noncontrolling interests | (21) | (1) | (20) | |||||||||||||||
Purchases of Loews Corporation treasury stock | (384) | (384) | ||||||||||||||||
Stock-based compensation | 2 | (14) | 16 | |||||||||||||||
Other | (3) | (1) | (2) | 1 | 1 | (2) | ||||||||||||
Balance at end of period at Jun. 30, 2022 | $ 15,714 | 2 | 2,869 | 15,210 | (2,913) | (386) | 932 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Dividends paid (in dollars per share) | $ 0.125 | |||||||||||||||||
Balance at beginning of period at Mar. 31, 2022 | $ 16,576 | 17,695 | (1,119) | 2 | 2 | 2,859 | 2,859 | 15,059 | 15,097 | (38) | (2,216) | (1,251) | (965) | (132) | (132) | 1,004 | 1,120 | (116) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Net income | 187 | 202 | (15) | 167 | 20 | |||||||||||||
Other comprehensive income (loss) | (778) | (1,405) | 627 | (699) | (79) | |||||||||||||
Dividends paid | (26) | (15) | ||||||||||||||||
Dividends paid | (11) | |||||||||||||||||
Purchases of Loews Corporation treasury stock | (255) | (255) | ||||||||||||||||
Stock-based compensation | 12 | 11 | 1 | |||||||||||||||
Other | (2) | (1) | (1) | 2 | 1 | (3) | ||||||||||||
Balance at end of period at Jun. 30, 2022 | $ 15,714 | 2 | 2,869 | 15,210 | (2,913) | (386) | 932 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Dividends paid (in dollars per share) | $ 0.0625 | |||||||||||||||||
Balance at beginning of period at Dec. 31, 2022 | $ 15,201 | $ 15,478 | $ (277) | 2 | $ 2 | 2,748 | $ 2,748 | 14,931 | $ 15,144 | $ (213) | (3,320) | $ (3,284) | $ (36) | (12) | $ (12) | 852 | $ 880 | $ (28) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Net income | 792 | 735 | 57 | |||||||||||||||
Other comprehensive income (loss) | 180 | 160 | 20 | |||||||||||||||
Dividends paid | (84) | (29) | ||||||||||||||||
Dividends paid | (55) | |||||||||||||||||
Purchase of subsidiary stock from noncontrolling interests | (26) | (26) | ||||||||||||||||
Purchases of Loews Corporation treasury stock | (593) | (593) | ||||||||||||||||
Stock-based compensation | 5 | (17) | 22 | |||||||||||||||
Other | (5) | (3) | 1 | (3) | ||||||||||||||
Balance at end of period at Jun. 30, 2023 | $ 15,470 | 2 | 2,728 | 15,637 | (3,160) | (604) | 867 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Dividends paid (in dollars per share) | $ 0.125 | |||||||||||||||||
Balance at beginning of period at Mar. 31, 2023 | $ 15,314 | 2 | 2,716 | 15,293 | (3,062) | (498) | 863 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Net income | 388 | 360 | 28 | |||||||||||||||
Other comprehensive income (loss) | (109) | (98) | (11) | |||||||||||||||
Dividends paid | (25) | (14) | ||||||||||||||||
Dividends paid | (11) | |||||||||||||||||
Purchase of subsidiary stock from noncontrolling interests | (2) | (2) | ||||||||||||||||
Purchases of Loews Corporation treasury stock | (107) | (107) | ||||||||||||||||
Stock-based compensation | 9 | 9 | ||||||||||||||||
Other | 2 | 3 | (2) | 1 | ||||||||||||||
Balance at end of period at Jun. 30, 2023 | $ 15,470 | $ 2 | $ 2,728 | $ 15,637 | $ (3,160) | $ (604) | $ 867 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Dividends paid (in dollars per share) | $ 0.0625 |
CONSOLIDATED CONDENSED STATEM_5
CONSOLIDATED CONDENSED STATEMENTS OF EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends paid (in dollars per share) | $ 0.0625 | $ 0.0625 | $ 0.125 | $ 0.125 |
CONSOLIDATED CONDENSED STATEM_6
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Operating Activities: | ||
Net income | $ 792 | $ 539 |
Adjustments to reconcile net income to net cash provided by operating activities, net | 300 | 497 |
Changes in operating assets and liabilities, net: | ||
Receivables | (456) | (634) |
Deferred acquisition costs | (74) | (63) |
Insurance reserves | 1,165 | 1,417 |
Other assets | (173) | (360) |
Other liabilities | (139) | 87 |
Trading securities | 738 | (37) |
Net cash flow provided by operating activities | 2,153 | 1,446 |
Investing Activities: | ||
Purchases of fixed maturities | (3,506) | (6,251) |
Proceeds from sales of fixed maturities | 2,285 | 3,293 |
Proceeds from maturities of fixed maturities | 613 | 1,715 |
Purchases of equity securities | (126) | (195) |
Proceeds from sales of equity securities | 121 | 193 |
Purchases of limited partnership investments | (245) | (168) |
Proceeds from sales of limited partnership investments | 132 | 134 |
Purchases of property, plant and equipment | (299) | (312) |
Change in short term investments | (322) | 739 |
Other, net | (120) | 66 |
Net cash flow used by investing activities | (1,467) | (786) |
Financing Activities: | ||
Dividends paid | (29) | (31) |
Dividends paid to noncontrolling interests | (55) | (79) |
Purchases of Loews Corporation treasury stock | (593) | (380) |
Purchases of subsidiary stock from noncontrolling interests | (26) | (21) |
Principal payments on debt | (502) | (301) |
Issuance of debt | 463 | 498 |
Other, net | (17) | (4) |
Net cash flow used by financing activities | (759) | (318) |
Effect of foreign exchange rate on cash | 4 | (12) |
Net change in cash | (69) | 330 |
Cash, beginning of period | 532 | 621 |
Cash, end of period | $ 463 | $ 951 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2023 | |
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”), a 90% 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, as used herein, the term “Company” 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” means Net income (loss) attributable to Loews Corporation shareholders and the term “subsidiaries” means Loews Corporation’s consolidated subsidiaries. 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 June 30, 2023 and December 31, 2022 and results of operations, comprehensive income (loss) and changes in shareholders’ equity for the three and six months ended June 30, 2023 and 2022 and cash flows for the six months ended June 30, 2023 and 2022, in each case in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Net income for the interim periods is not necessarily indicative of net income for the 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, 2022. 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 and six months ended June 30, 2023 and 2022 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. Accounting changes – In August of 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-12, “Financial Services – Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts.” The updated accounting guidance requires changes to the measurement and disclosure of long-duration contracts. Entities are required to review, and update if there is a change, cash flow assumptions (including morbidity and persistency) used to measure the liability for future policyholder benefits (“LFPB”) at least annually. The LFPB must also be updated for actual experience at least annually. The LFPB is reflected as Insurance reserves: Future policy benefits on the Consolidated Condensed Balance Sheets. The discount rate assumption used to measure the LFPB must be updated quarterly using an upper-medium grade (low credit risk) fixed-income instrument yield, commonly interpreted as a single-A rate. The effect of changes in cash flow assumptions and actual variances from expected experience are recorded in results of operations within Insurance claims and policyholders’ benefits. The effect of changes in discount rate assumptions are recorded in Other comprehensive income (loss) (“OCI”). In contrast, under legacy accounting guidance, cash flow and discount rate assumptions were locked in unless a premium deficiency emerged. The discount rate assumption under legacy accounting guidance was determined using CNA’s internal investment portfolio yield, which was generally higher than a single-A yield. The new guidance eliminates the need to hold shadow reserves associated with long term care reserves. Under legacy accounting guidance, to the extent that unrealized gains on fixed maturity securities supporting long term care reserves would have resulted in a premium deficiency if realized, a related increase to Insurance reserves was recorded, net of tax, as a reduction of net unrealized gains (losses), through Other comprehensive income (loss) (shadow reserves). The unit of account is the level at which reserves are measured. Under the new guidance, the unit of account used to measure the LFPB is the cohort. Cohorts are comprised of insurance contracts issued no more than one year apart, and must be further disaggregated according to policy benefit and insurance risk characteristics. Under legacy accounting guidance, the LFPB was generally measured at the individual policy level. Under the new guidance, the net premium ratio (“NPR”) is capped at 100%. To the extent that NPR would otherwise exceed 100%, the LFPB is increased, and a loss is recognized immediately in the results of operations. The NPR cap is applied at the cohort level each quarter when NPR is updated. In contrast, under legacy accounting guidance, premium deficiency testing was performed annually at the product level. See Note 6 to the Consolidated Condensed Financial Statements for further explanation of the NPR and LFPB calculations. The Company adopted the new guidance effective January 1, 2023, using the modified retrospective method applied as of the transition date of January 1, 2021. CNA’s run-off long term care business is in scope of the new guidance. All prior periods presented in the financial statements have been adjusted to reflect application of the new guidance. The original locked in discount rate, utilized for purposes of calculating the NPR under the new guidance, was based on the discount rate assumption used to calculate the LFPB immediately prior to the transition date. While the requirements of the new guidance represent a material change from legacy accounting, the new guidance does not impact capital and surplus under statutory accounting practices, cash flows or the underlying economics of the business. In December of 2022, the FASB issued ASU 2022-05, “Financial Services-Insurance (Topic 944): Transition for Sold Contracts” (“ASU 2022-05”). This guidance permits companies to make an election to exclude from the scope of ASU 2018-12 any insurance contracts that have been de-recognized prior to the effective date of ASU 2018-12, assuming that the company has no significant continuing involvement with the de-recognized contracts. In the fourth quarter of 2022, CNA novated its block of legacy annuity business, which was fully-ceded prior to novation. The Company has elected the ASU 2022-05 transition relief, and has excluded the novated legacy annuity business from the scope of ASU 2018-12. Explanation of ASU 2018-12 Transition Impacts: The following table presents a roll-forward of the pre-transition LFPB balance as of January 1, 2021: (In millions) Balance as of December 31, 2020, as reported $ 13,318 Reclassification of reserves for policyholders currently receiving benefits to Future policy benefits (a) 2,844 De-recognition of shadow reserves (3,293) Re-measurement using an upper-medium grade fixed income instrument yield discount rate 6,255 Other adjustments 8 Balance as of January 1, 2021, as adjusted $ 19,132 (a) In conjunction with the adoption of ASU 2018-12 Shadow reserves associated with the long term care business were de-recognized as of the transition date in Accumulated other comprehensive income (“AOCI”). The effect of re-measuring the LFPB at the single-A discount rate as of the transition date was similarly recorded in AOCI. There are no cohorts for which the NPR exceeded 100% at the transition date. CNA’s practice under legacy accounting guidance was to calculate and record premium deficiency reserves at the policy level. Accordingly, an allocation methodology was not required to assign historical premium deficiency reserves to cohorts upon transition to ASU 2018-12. The following table presents after tax adjustments to the opening balance of Shareholders’ equity and Noncontrolling interests resulting from adoption of ASU 2018-12: Accumulated other comprehensive income (loss) Retained earnings Noncontrolling interests (In millions) Balance as of December 31, 2020, as reported $ 581 $ 14,150 $ 1,321 De-recognition of shadow reserves 2,331 270 Re-measurement of LFPB using an upper-medium grade fixed (4,428) (513) Other adjustments (5) (1) Balance as of January 1, 2021, as adjusted $ (1,516) $ 14,145 $ 1,077 The effects of adoption of ASU 2018-12 on the Consolidated Condensed Statement of Operations were as follows: Three Months Ended June 30, 2022 As Reported Effect of Adoption As Adjusted (In millions) Insurance claims and policyholders’ benefits (a) $ 1,583 $ 18 $ 1,601 Income before income tax 253 (18) 235 Income tax expense (51) 3 (48) Net income 202 (15) 187 Amounts attributable to noncontrolling interests (22) 2 (20) Net income attributable to Loews Corporation 180 (13) 167 Basic net income per share 0.73 (0.05) 0.68 Diluted net income per share 0.73 (0.05) 0.68 (a) The effect of adopting ASU 2018-12 on Insurance claims and policyholders’ benefits is inclusive of the re-measurement gain of $1 million, which is presented parenthetically on the Consolidated Condensed Statement of Operations. Six Months Ended June 30, 2022 As Reported Effect of Adoption As Adjusted (In millions) Insurance claims and policyholders’ benefits (a) $ 3,038 $ 41 $ 3,079 Income before income tax 715 (41) 674 Income tax expense (143) 8 (135) Net income 572 (33) 539 Amounts attributable to noncontrolling interests (54) 4 (50) Net income attributable to Loews Corporation 518 (29) 489 Basic net income per share 2.10 (0.12) 1.98 Diluted net income per share 2.09 (0.11) 1.98 (a) The effect of adopting ASU 2018-12 on Insurance claims and policyholders’ benefits is inclusive of the re-measurement gain of $6 million, which is presented parenthetically on the Consolidated Condensed Statement of Operations. The effects of adoption of ASU 2018-12 on the Consolidated Condensed Balance Sheet were as follows: December 31, 2022 As Reported Effect of Adoption As Adjusted (In millions) Other assets $ 3,941 $ 73 $ 4,014 Total assets 75,494 73 75,567 Claim and claim adjustment expenses (a) 25,099 (2,979) 22,120 Future policy benefits (a) 10,151 3,329 13,480 Total liabilities 60,016 350 60,366 Retained earnings 15,144 (213) 14,931 Accumulated other comprehensive income (loss) (3,284) (36) (3,320) Noncontrolling interests 880 (28) 852 Total equity 15,478 (277) 15,201 (a) In conjunction with the adoption of ASU 2018-12, at January 1, 2023, the long term care reserves for policyholders currently receiving benefits were reclassified from Claim and claim adjustment expense to Future policy benefits. This change was applied retrospectively as of January 1, 2021. The effects of adoption of ASU 2018-12 on the Consolidated Condensed Statement of Comprehensive Income (Loss) were as follows: Three Months Ended June 30, 2022 As Reported Effect of Adoption As Adjusted (In millions) Changes in: Net unrealized losses on other investments $ (1,346) $ (880) $ (2,226) Total unrealized losses on investments (1,348) (880) (2,228) Impact of changes in discount rates used to measure long-duration 1,507 1,507 Other comprehensive (loss) (1,405) 627 (778) Comprehensive (loss) (1,203) 612 (591) Amounts attributable to noncontrolling interests 124 (65) 59 Total comprehensive (loss) attributable to Loews Corporation (1,079) 547 (532) Six Months Ended June 30, 2022 As Reported Effect of Adoption As Adjusted (In millions) Changes in: Net unrealized losses on other investments $ (2,957) $ (1,912) $ (4,869) Total unrealized losses on investments (2,963) (1,912) (4,875) Impact of changes in discount rates used to measure long-duration 3,142 3,142 Other comprehensive (loss) (3,010) 1,230 (1,780) Comprehensive (loss) (2,438) 1,197 (1,241) Amounts attributable to noncontrolling interests 260 (124) 136 Total comprehensive (loss) attributable to Loews Corporation (2,178) 1,073 (1,105) The effects of adoption of ASU 2018-12 on the Consolidated Condensed Statements of Cash Flows were as follows: Six Months Ended June 30, 2022 As Reported Effect of Adoption As Adjusted (In millions) Net income $ 572 $ (33) $ 539 Adjustments to reconcile net income to net cash provided by operating 505 (8) 497 Changes in: Insurance reserves 1,376 41 1,417 The effects of adoption of ASU 2018-12 on segment results of operations of CNA were as follows: Three Months Ended June 30, 2022 As Reported Effect of Adoption As Adjusted (In millions) Insurance claims and policyholders’ benefits (a) $ 1,583 $ 18 $ 1,601 Income before income tax 245 (18) 227 Income tax expense (40) 3 (37) Net income 205 (15) 190 Amounts attributable to noncontrolling interests (22) 2 (20) Net income attributable to Loews Corporation 183 (13) 170 (a) The effect of adopting ASU 2018-12 on Insurance claims and policyholders’ benefits is inclusive of the re-measurement gain of $1 million, which is presented parenthetically on the Consolidated Condensed Statement of Operations. Six Months Ended June 30, 2022 As Reported Effect of Adoption As Adjusted (In millions) Insurance claims and policyholders’ benefits (a) $ 3,038 $ 41 $ 3,079 Income before income tax 623 (41) 582 Income tax expense (105) 8 (97) Net income 518 (33) 485 Amounts attributable to noncontrolling interests (54) 4 (50) Net income attributable to Loews Corporation 464 (29) 435 (a) The effect of adopting ASU 2018-12 on Insurance claims and policyholders’ benefits is inclusive of the re-measurement gain of $6 million, which is presented parenthetically on the Consolidated Condensed Statement of Operations. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Acquisitions | Acquisitions During the second quarter of 2023, Loews Hotels & Co paid $46 million to acquire an additional equity interest in a previously unconsolidated joint venture property. The acquisition resulted in Loews Hotels & Co consolidating the joint venture property and recording a gain of $46 million ($36 million after tax) . Upon acquisition, $232 million in assets and $120 million in liabilities, including mezzanine equity representing the remaining noncontrolling owner’s interest, were consolidated at fair value . |
Investments
Investments | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Net investment income is as follows: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (In millions) Fixed maturity securities $ 482 $ 441 $ 952 $ 870 Limited partnership investments 55 7 82 27 Short term investments 14 30 Equity securities (a) 21 (11) 33 (9) Income (loss) from trading portfolio (a) 14 (62) 59 (77) Other 29 13 49 28 Total investment income 615 388 1,205 839 Investment expenses (23) (22) (44) (41) Net investment income $ 592 $ 366 $ 1,161 $ 798 (a) Net investment income (loss) recognized due to the change in fair value of equity and trading portfolio securities held as of June 30, 2023 and 2022 $ 15 $ (95) $ 20 $ (120) Investment gains (losses) are as follows: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (In millions) Fixed maturity securities: Gross gains $ 8 $ 45 $ 43 $ 71 Gross losses (35) (60) (92) (88) Investment losses on fixed maturity securities (27) (15) (49) (17) Equity securities (a) 3 (71) (11) (109) Derivative instruments 26 55 Short term investments and other (8) 1 (7) 1 Gain on acquisition of a joint venture (see Note 2) 46 46 Investment gains (losses) $ 14 $ (59) $ (21) $ (70) (a) Investment gains (losses) recognized due to the change in fair value of non-redeemable preferred stock included within equity securities held as of June 30, 2023 and 2022 $ 3 $ (70) $ — $ (108) The components of available-for-sale impairment losses (gains) recognized in earnings by asset type are presented in the following table. The table includes losses (gains) on securities with an intention to sell and changes in the allowance for credit losses on securities since acquisition date: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (In millions) Fixed maturity securities available-for-sale: Corporate and other bonds $ 9 $ 21 $ 17 $ 29 Asset-backed 8 (1) 8 1 Impairment losses recognized in earnings $ 17 $ 20 $ 25 $ 30 T here were $6 million of losses recognized on mortgage loans during the three and six months ended June 30, 2023 due to changes in expected credit losses. There were no losses recognized on mortgage loans during the three and six months ended June 30, 2022. The following tables present a summary of fixed maturity securities: June 30, 2023 Cost or Amortized Cost Gross Unrealized Gross Unrealized Allowance Estimated (In millions) Fixed maturity securities: Corporate and other bonds $ 24,194 $ 339 $ 1,909 $ 13 $ 22,611 States, municipalities and political 8,262 341 793 7,810 Asset-backed: Residential mortgage-backed 3,133 4 444 2,693 Commercial mortgage-backed 1,843 4 257 7 1,583 Other asset-backed 3,571 9 330 2 3,248 Total asset-backed 8,547 17 1,031 9 7,524 U.S. Treasury and obligations of 130 3 127 Foreign government 700 1 50 651 Redeemable preferred stock 5 5 Fixed maturities available-for-sale 41,838 698 3,786 22 38,728 Fixed maturities trading 199 1 198 Total fixed maturity securities $ 42,037 $ 698 $ 3,787 $ 22 $ 38,926 December 31, 2022 Fixed maturity securities: Corporate and other bonds $ 23,137 $ 301 $ 2,009 $ 21,429 States, municipalities and political 8,918 338 939 8,317 Asset-backed: Residential mortgage-backed 3,073 5 447 2,631 Commercial mortgage-backed 1,886 4 255 1,635 Other asset-backed 3,287 2 361 $ 1 2,927 Total asset-backed 8,246 11 1,063 1 7,193 U.S. Treasury and obligations of 111 1 2 110 Foreign government 617 1 43 575 Redeemable preferred stock 3 3 Fixed maturities available-for-sale 41,032 652 4,056 1 37,627 Fixed maturities trading 70 70 Total fixed maturity securities $ 41,102 $ 652 $ 4,056 $ 1 $ 37,697 The available-for-sale fixed maturity 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 June 30, 2023 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 $ 7,681 $ 350 $ 10,087 $ 1,559 $ 17,768 $ 1,909 States, municipalities and political 1,486 64 2,783 729 4,269 793 Asset-backed: Residential mortgage-backed 822 35 1,810 409 2,632 444 Commercial mortgage-backed 325 15 1,171 242 1,496 257 Other asset-backed 739 32 1,982 298 2,721 330 Total asset-backed 1,886 82 4,963 949 6,849 1,031 U.S. Treasury and obligations of 84 2 34 1 118 3 Foreign government 213 8 395 42 608 50 Total fixed maturity securities $ 11,350 $ 506 $ 18,262 $ 3,280 $ 29,612 $ 3,786 December 31, 2022 Fixed maturity securities: Corporate and other bonds $ 15,946 $ 1,585 $ 1,634 $ 424 $ 17,580 $ 2,009 States, municipalities and political 4,079 769 456 170 4,535 939 Asset-backed: Residential mortgage-backed 1,406 144 1,143 303 2,549 447 Commercial mortgage-backed 1,167 159 408 96 1,575 255 Other asset-backed 2,087 262 542 99 2,629 361 Total asset-backed 4,660 565 2,093 498 6,753 1,063 U.S. Treasury and obligations of 76 1 16 1 92 2 Foreign government 473 26 78 17 551 43 Total fixed maturity securities $ 25,234 $ 2,946 $ 4,277 $ 1,110 $ 29,511 $ 4,056 The following table presents the estimated fair value and gross unrealized losses of available-for-sale fixed maturity securities in a gross unrealized loss position for which an allowance for credit loss has not been recorded, by ratings distribution. June 30, 2023 December 31, 2022 Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses (In millions) U.S. Government, Government agencies and Government-sponsored enterprises $ 2,479 $ 334 $ 2,355 $ 337 AAA 1,662 283 1,559 298 AA 4,404 746 4,327 817 A 6,937 703 6,615 749 BBB 12,960 1,513 13,226 1,621 Non-investment grade 1,170 207 1,429 234 Total $ 29,612 $ 3,786 $ 29,511 $ 4,056 Based on current facts and circumstances, the unrealized losses presented in the June 30, 2023 securities in the 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 a general market widening of credit spreads. In reaching this determination, the continued volatility in risk-free rates and credit 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 as of June 30, 2023. 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 $413 million, $394 million and $374 million as of June 30, 2023, December 31, 2022 and June 30, 2022 and are excluded from the estimate of expected credit losses and the amortized cost basis in the tables within this Note. Three months ended June 30, 2023 Corporate and Other Bonds Asset-backed Total (In millions) Allowance for credit losses: Balance as of April 1, 2023 $ 1 $ 1 $ 2 Additions to the allowance for credit losses: Securities for which credit losses were not previously recorded 1 7 8 Available-for-sale securities accounted for as PCD assets 11 11 Additional increases to the allowance for credit losses on securities that had an allowance recorded in a previous period 1 1 Total allowance for credit losses $ 13 $ 9 $ 22 Three months ended June 30, 2022 Corporate and Other Bonds Asset-backed Total (In millions) Allowance for credit losses: Balance as of April 1, 2022 $ 12 $ 5 $ 17 Additions to the allowance for credit losses: Available-for-sale securities accounted for as PCD assets 3 3 Reductions to the allowance for credit losses: Write-offs charged against the allowance 12 12 Additional decreases to the allowance for credit losses on securities that had an allowance recorded in a previous period (3) (3) Total allowance for credit losses $ — $ 5 $ 5 Six months ended June 30, 2023 Allowance for credit losses: Balance as of January 1, 2023 $ — $ 1 $ 1 Additions to the allowance for credit losses: Securities for which credit losses were not previously recorded 1 7 8 Available-for-sale securities accounted for as PCD assets 20 20 Reductions to the allowance for credit losses: Securities sold during the period (realized) 6 6 Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis 3 3 Additional increases to the allowance for credit losses on securities that had an allowance recorded in a previous period 1 1 2 Total allowance for credit losses $ 13 $ 9 $ 22 Six months ended June 30, 2022 Allowance for credit losses: Balance as of January 1, 2022 $ 11 $ 7 $ 18 Additions to the allowance for credit losses: Available-for-sale securities accounted for as PCD assets 3 3 Reductions to the allowance for credit losses: Write-offs charged against the allowance 12 12 Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period 1 (5) (4) Total allowance for credit losses $ — $ 5 $ 5 Contractual Maturity The following table presents available-for-sale fixed maturity securities by contractual maturity. June 30, 2023 December 31, 2022 Cost or Amortized Cost Estimated Fair Cost or Amortized Cost Estimated (In millions) Due in one year or less $ 988 $ 972 $ 1,012 $ 1,001 Due after one year through five years 11,072 10,443 9,880 9,399 Due after five years through ten years 13,445 12,226 13,788 12,453 Due after ten years 16,333 15,087 16,352 14,774 Total $ 41,838 $ 38,728 $ 41,032 $ 37,627 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 June 30, 2023 2023 2022 2021 2020 2019 Prior Total (In millions) DSCR ≥1.6x LTV less than 55% $ 9 $ 13 $ 111 $ 33 $ 245 $ 411 LTV 55% to 65% 8 8 LTV greater than 65% 31 11 42 DSCR 1.2x - 1.6x LTV less than 55% $ 28 5 49 14 42 51 189 LTV 55% to 65% 12 43 24 9 88 LTV greater than 65% 58 58 DSCR ≤1.2x LTV less than 55% 35 34 69 LTV 55% to 65% 13 41 43 97 LTV greater than 65% 13 27 21 23 7 91 Total $ 66 $ 249 $ 94 $ 149 $ 183 $ 312 $ 1,053 (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. June 30, 2023 December 31, 2022 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 $ 216 $ 5 Futures – short 165 $ (2) $ 169 Warrants 95 5 117 $ 6 Interest rate swaps 240 19 240 19 Currency forwards 13 (1) 12 $ (1) 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 June 30, 2023, commitments to purchase or fund were approximately $1.5 billion and to sell were approximately $60 million under the terms of these investments. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2023 | |
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 United States of America (“U.S.”) Treasury, government-sponsored enterprises, foreign governments and redeemable preferred stock. June 30, 2023 Level 1 Level 2 Level 3 Total (In millions) Fixed maturity securities: Corporate bonds and other $ 137 $ 22,286 $ 971 $ 23,394 States, municipalities and political subdivisions 7,767 43 7,810 Asset-backed 6,641 883 7,524 Fixed maturities available-for-sale 137 36,694 1,897 38,728 Fixed maturities trading 198 198 Total fixed maturities $ 335 $ 36,694 $ 1,897 $ 38,926 Equity securities $ 603 $ 422 $ 26 $ 1,051 Short term and other 4,274 42 4,316 Receivables 20 20 Payable to brokers (54) (54) December 31, 2022 Fixed maturity securities: Corporate bonds and other $ 120 $ 21,187 $ 810 $ 22,117 States, municipalities and political subdivisions 8,274 43 8,317 Asset-backed 6,405 788 7,193 Fixed maturities available-for-sale 120 35,866 1,641 37,627 Fixed maturities trading 1 69 70 Total fixed maturities $ 121 $ 35,935 $ 1,641 $ 37,697 Equity securities $ 669 $ 435 $ 35 $ 1,139 Short term and other 4,539 167 4,706 Receivables 19 19 Payable to brokers (82) (82) 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 and six months ended June 30, 2023 and 2022: 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 June 30 Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at June 30 2023 Balance, April 1 Included in Net Income Included in OCI Purchases Sales Settlements Transfers into Transfers out of Level 3 Balance, June 30 (In millions) Fixed maturity securities: Corporate bonds and other $ 912 $ (15) $ 68 $ (5) $ 11 $ 971 $ (15) States, municipalities and political subdivisions 44 (1) 43 (1) Asset-backed 859 $ 4 (7) 87 (17) $ (43) 883 (7) Fixed maturities available-for-sale $ 1,815 $ 4 $ (23) $ 155 $ — $ (22) $ 11 $ (43) $ 1,897 $ — $ (23) Equity securities $ 29 $ (1) $ (2) $ 26 $ (1) 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 June 30 Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at June 30 2022 Balance, April 1 Included in Net Income Included in OCI Purchases Sales Settlements Transfers into Transfers out of Level 3 Balance, June 30 (In millions) Fixed maturity securities: Corporate bonds and other $ 915 $ (1) $ (82) $ 51 $ (37) $ 846 $ (81) States, municipalities and political subdivisions 51 (5) 46 (5) Asset-backed 604 8 (52) 92 $ (2) (23) $ 14 641 (52) Fixed maturities available-for-sale $ 1,570 $ 7 $ (139) $ 143 $ (2) $ (60) $ 14 $ — $ 1,533 $ — $ (138) Equity securities $ 44 $ (3) $ (3) $ 9 $ 47 $ (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 June 30 Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at June 30 2023 Balance, January 1 Included in Net Income Included in OCI Purchases Sales Settlements Transfers into Transfers out of Level 3 Balance, June 30 (In millions) Fixed maturity securities: Corporate bonds and other $ 810 $ 9 $ 149 $ (8) $ 11 $ 971 $ 9 States, municipalities and political subdivisions 43 43 Asset-backed 788 $ 9 142 (26) 23 $ (53) 883 (1) Fixed maturities available-for-sale $ 1,641 $ 9 $ 9 $ 291 $ — $ (34) $ 34 $ (53) $ 1,897 $ — $ 8 Equity securities $ 35 $ (7) $ (2) $ 26 $ (7) 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 June 30 Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at June 30 2022 Balance, January 1 Included in Net Income Included in OCI Purchases Sales Settlements Transfers into Transfers out of Level 3 Balance, June 30 (In millions) Fixed maturity securities: Corporate bonds and other $ 937 $ (2) $ (153) $ 118 $ (5) $ (59) $ 10 $ 846 $ (153) States, municipalities and political subdivisions 56 (10) 46 (10) Asset-backed 556 11 (84) 232 (2) (40) 19 $ (51) 641 (83) Fixed maturities available-for-sale $ 1,549 $ 9 $ (247) $ 350 $ (7) $ (99) $ 29 $ (51) $ 1,533 $ — $ (246) Equity securities $ 29 $ 12 $ (3) $ 9 $ 47 $ (1) 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. June 30, 2023 Estimated Valuation Techniques Unobservable Inputs Range (Weighted Average) (In millions) Fixed maturity securities $ 1,415 Discounted cash flow Credit spread 1% — 7% (2%) December 31, 2022 Fixed maturity securities $ 1,177 Discounted cash flow Credit spread 1% — 8% (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 June 30, 2023 Level 1 Level 2 Level 3 Total (In millions) Assets: Other invested assets, primarily mortgage loans $ 1,009 $ 954 $ 954 Liabilities: Short term debt 960 $ 785 169 954 Long term debt 8,090 6,908 659 7,567 December 31, 2022 Assets: Other invested assets, primarily mortgage loans $ 1,040 $ 973 $ 973 Liabilities: Short term debt 853 $ 744 111 855 Long term debt 8,160 7,035 586 7,621 |
Claim and Claim Adjustment Expe
Claim and Claim Adjustment Expense Reserves | 6 Months Ended |
Jun. 30, 2023 | |
Insurance [Abstract] | |
Claim and Claim Adjustment Expense Reserves | Claim and Claim Adjustment Expense Reserves 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, economic, medical and social 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. Claim and claim adjustment expense reserves are also maintained for structured settlement obligations. In developing the claim and claim adjustment expense reserve estimates for structured settlement obligations, actuaries review mortality experience on an annual basis. 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 $68 million and $37 million for the three months ended June 30, 2023 and 2022 and $120 million and $57 million for the six months ended June 30, 2023 and 2022 primarily due to severe weather related events. Liability for Unpaid Claim and Claim Adjustment Expenses The following table presents a reconciliation between beginning and ending claim and claim adjustment expense reserves. Six Months Ended June 30 2023 2022 (a) (In millions) Reserves, beginning of year: Gross $ 22,120 $ 21,269 Ceded 5,191 4,969 Net reserves, beginning of year 16,929 16,300 Net incurred claim and claim adjustment expenses: Provision for insured events of current year 2,746 2,452 Increase (decrease) in provision for insured events of prior years 37 30 Amortization of discount 22 22 Total net incurred (b) 2,805 2,504 Net payments attributable to: Current year events (287) (233) Prior year events (2,014) (1,882) Total net payments (2,301) (2,115) Foreign currency translation adjustment and other 57 (222) Net reserves, end of period 17,490 16,467 Ceded reserves, end of period 5,312 5,156 Gross reserves, end of period $ 22,802 $ 21,623 (a) In conjunction with the adoption of ASU 2018-22, at January 1, 2023, long term care reserves for policyholders currently receiving benefits were reclassified from Claim and claim adjustment expenses into Future policy benefits and this change was applied retrospectively as of January 1, 2021. For additional information see Note 1. (b) 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 and uncollectible reinsurance, 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 loss reserve development of $17 million and $37 million was recorded for CNA’s commercial property and casualty operations (“Property & Casualty Operations”) for the three months ended June 30, 2023 and 2022 and favorable net prior year loss reserve development of $4 million and $49 million was recorded for the six months ended June 30, 2023 and 2022. Unfavorable net prior year loss reserve development of $35 million and $64 million was recorded for CNA’s operations outside of Property & Casualty Operations (“Other Insurance Operations”) for the three and six months ended June 30, 2023 and 2022. The following table and discussion present details of the net prior year loss reserve development in Property & Casualty Operations and Other Insurance Operations: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (In millions) Medical professional liability $ 1 $ 9 $ 9 Other professional liability and management liability $ (1) 13 (1) 13 Surety (7) (19) (7) (28) Commercial auto 11 21 11 21 General liability 70 41 70 41 Workers’ compensation (96) (82) (98) (84) Property and other 6 (12) 12 (21) Other insurance operations 35 64 35 64 Total pretax (favorable) unfavorable development $ 18 $ 27 $ 31 $ 15 Three and Six Months 2023 Unfavorable development in general liability was due to higher than expected claim severity in CNA’s construction and middle market businesses across multiple accident years. Favorable development in workers’ compensation was due to favorable medical trends driving lower than expected severity in multiple accident years. Following the second quarter annual review of legacy mass tort exposures, unfavorable development in other insurance operations was primarily driven by higher than expected frequency and severity in abuse claims in older accident years. 2022 Favorable development in surety was primarily due to lower than expected frequency and lack of systemic activity in recent accident years. Unfavorable development in commercial auto was due to higher than expected claim severity in CNA’s construction business in multiple accident years. Unfavorable development in general liability was due to higher than expected claim severity in CNA’s construction, middle market and small businesses across multiple accident years. Favorable development in workers’ compensation was due to favorable medical trends driving lower than expected severity in multiple accident years. Unfavorable development in other insurance operations was largely associated with legacy mass tort abuse claims, including the Diocese of Rochester proposed settlement. 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 $15 million and $11 million for the three months ended June 30, 2023 and 2022 and $23 million for each of the six months ended June 30, 2023 and 2022 . As of June 30, 2023 and December 31, 2022, the cumulative amounts ceded under the LPT were $3.5 billion. The unrecognized deferred retroactive reinsurance benefit was $402 million and $425 million as of June 30, 2023 and December 31, 2022 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 $2.4 billion as of June 30, 2023. 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 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. |
Future Policy Benefits Reserves
Future Policy Benefits Reserves | 6 Months Ended |
Jun. 30, 2023 | |
Insurance [Abstract] | |
Future Policy Benefit Reserves | Future Policy Benefits Reserves Future policy benefits reserves are related to CNA’s run-off long term care business, which is included in Other Insurance Operations. The determination of Future policy benefits reserves requires management to make estimates and assumptions about expected policyholder experience over the remaining life of the policy. Since policies may be in force for several decades, these assumptions are subject to significant estimation risk. As a result of this variability, CNA’s future policy benefits reserves may be subject to material increases if actual experience develops adversely to its expectations. The LFPB is computed using the net level premium method, which incorporates cash flow assumptions and discount rate assumptions. Under the net level premium method, the LFPB is equal to the present value of future benefits and claim settlement expenses less the present value of future net premiums. Net premiums are equal to gross premiums multiplied by the NPR. The NPR is generally the ratio of the present value of benefits and expense payments to the present value of gross premiums, expected over the lifetime of the policy. As a result of the modified retrospective adoption of ASU 2018-12, the NPR calculation incorporates the original locked in discount rate and the reserve balance as of the transition date of January 1, 2021. The key cash flow assumptions used to estimate the LFPB are morbidity, persistency (inclusive of mortality), anticipated future premium rate increases and expenses. Morbidity is the frequency and severity of injury, illness, sickness and diseases contracted. Persistency is the percentage of policies remaining in force and can be affected by policy lapses, benefit reductions and death. Future premium rate increases are generally subject to regulatory approval, and therefore the exact timing and size of the approved rate increases are unknown. Expense assumptions relate to claim adjudication. The practical expedient that allows locking in the expense assumption has not been elected. The discount rate is determined using the upper-medium grade fixed income instrument yield curve. CNA has elected to update the NPR and the LFPB for actual experience on a quarterly basis. A quarterly assessment is also made as to whether evidence suggests that cash flow assumptions should be updated. Annually in the third quarter, actuarial analysis is performed on policyholder morbidity, persistency, premium rate increases and expense experience. This analysis, combined with judgment, informs the setting of updated cash flow assumptions used to estimate the LFPB. Actuarial analysis includes predictive modeling, actual to expected experience comparisons and trend analysis. Applicable industry research is also considered. Quarterly, to derive the upper-medium grade fixed income instrument yield discount rate assumption, a published spot rate curve constructed from single-A rated U.S. dollar denominated corporate bonds is used. Linear interpolation is used to determine yield assumptions for tenors that fall between points for which observable rates are available. For cash flows that are projected to occur beyond the tenor for which market-observable rates are available, judgment is applied to estimate a normative rate which is graded to over 10 years. Quarterly, the updated NPR is used to derive an updated LFPB as of the beginning of the current quarter measured at the original locked in discount rate. The updated LFPB is then compared to the existing carrying amount of the liability as of the same date (measured at the original locked in discount rate) to determine the re-measurement gain (loss), which is presented parenthetically within the Insurance claims and policyholders’ benefits line on the Consolidated Condensed Statements of Operations. Insurance contracts are grouped into cohorts according to issue year. Contracts assumed through reinsurance are generally included within the same cohorts as contracts issued directly by CNA, according to issue year. The issue year for assumed contracts is defined according to the date that the assumption of insurance risk incepted. For assumed contracts that were reinsured concurrently with the issuance of the underlying direct contract, issue year is defined as the year that the underlying policy was issued. For contracts that were already in-force when assumed, issue year is defined as the year in which the reinsurance agreement incepted. For group long term care business, issue year is defined as the year the individual insurance certificate was issued. Long term care is CNA’s only long-duration product line, therefore, cohorts are not further disaggregated by product. The following table summarizes balances and changes in the LFPB. 2023 2022 (In millions) Present value of future net premiums Balance, January 1 $ 3,993 $ 4,735 Effect of changes in discount rate (74) (880) Balance, January 1, at original locked in discount rate 3,919 3,855 Effect of changes in cash flow assumptions (a) Effect of actual variances from expected experience (a) (85) (37) Adjusted balance, January 1 3,834 3,818 Interest accrual 103 105 Net premiums: earned during period (225) (225) Balance, end of period at original locked in discount rate 3,712 3,698 Effect of changes in discount rate 78 246 Balance, June 30 $ 3,790 $ 3,944 Present value of future benefits & expenses Balance, January 1 $ 17,472 $ 22,745 Effect of changes in discount rate (125) (5,942) Balance, January 1, at original locked in discount rate 17,347 16,803 Effect of changes in cash flow assumptions (a) Effect of actual variances from expected experience (a) (51) (43) Adjusted balance, January 1 17,296 16,760 Interest accrual 482 482 Benefit & expense payments (629) (470) Balance, end of period at original locked in discount rate 17,149 16,772 Effect of changes in discount rate 307 1,329 Balance, June 30 $ 17,456 $ 18,101 Net LFPB $ 13,666 $ 14,157 (a) As of June 30, 2023 and 2022 , the re-measurement gain (loss) of $(34) million and $6 million presented parenthetically on the Consolidated Condensed Statement of Operations is comprised of the effect of changes in cash flow assumptions and the effect of actual variances from expected experience. The following table presents earned premiums and interest expense associated with the long term care business recognized on the Condensed Consolidated Statement of Operations. Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (In millions) Earned premiums $ 113 $ 118 $ 228 $ 238 Interest expense 189 189 379 377 The following table presents undiscounted expected future benefit and expense payments and undiscounted expected future gross premiums. June 30, 2023 2022 (In millions) Expected future benefit and expense payments $ 33,287 $ 33,429 Expected future gross premiums 5,536 5,848 Discounted expected future gross premiums at the upper-medium grade fixed income instrument yield discount rate were $3.9 billion and $4.2 billion as of June 30, 2023 and 2022. The weighted average effective duration of the LFPB calculated using the original locked in discount rate was 12 years as of June 30, 2023 and 2022. The weighted average interest rates in the table below are calculated based on the rate used to discount all future cash flows. June 30, December 31, 2023 2022 2022 Original locked in discount rate 5.25 % 5.29 % 5.27 % Upper-medium grade fixed income instrument discount rate 5.10 4.64 5.23 For the three and six months ended June 30, 2023, immediate charges to net income resulting from adverse development that caused the NPR to exceed 100% were $29 million and $42 million. For the three and six months ended June 30, 2022, immediate charges to net income resulting from adverse development that caused the NPR to exceed 100% were less than $1 million. For the three and six months ended June 30, 2023, the portion of losses recognized in a prior period due to NPR exceeding 100% which, due to favorable development, was reversed through net income were less than $1 million and $11 million. For the six months ended June 30, 2022, the portion of losses recognized in a prior period due to NPR exceeding 100% which, due to favorable development, was reversed through net income was $1 million. There were no such reversals for the three months ended June 30, 2022. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Accumulated other comprehensive income (loss) The tables below present the changes in AOCI by component for the three and six months ended June 30, 2022 and 2023 : Net Unrealized Gains (Losses) on Investments with an Allowance for Credit Losses Net Unrealized Gains (Losses) on Other Investments Cumulative Unrealized Gains (Losses) on Cash Flow Hedges Pension and Postretirement Benefits Foreign Currency Translation Total Accumulated Other Comprehensive Income (Loss) (In millions) Balance, April 1, 2022, as reported $ (6) $ (513) $ — $ 12 $ (630) $ (114) $ (1,251) Cumulative effect adjustments from changes in accounting standards (Note 1), after tax of $0, $270, $(497), $0, $0 and $0 1,154 (2,119) (965) Balance, April 1, 2022, as adjusted (6) 641 (2,119) 12 (630) (114) (2,216) Other comprehensive income (loss) before reclassifications, after tax of $(1), $593, $(400), $5, $2, and $0 (1) (2,240) 1,507 6 (2) (68) (798) Reclassification of (gains) losses from accumulated other comprehensive income, after tax of $1, $(3), $0, $2, $(1) and $0 (1) 14 7 20 Other comprehensive income (loss) (2) (2,226) 1,507 6 5 (68) (778) Amounts attributable to noncontrolling interests 1 229 (156) 7 81 Balance, June 30, 2022 $ (7) $ (1,356) $ (768) $ 18 $ (625) $ (175) $ (2,913) Balance, April 1, 2023 $ (14) $ (1,867) $ (393) $ 12 $ (614) $ (186) $ (3,062) Other comprehensive income (loss) before reclassifications, after tax of $2, $116, $(68), $0, $0 and $0 (8) (427) 256 8 35 (136) Reclassification of (gains) losses from accumulated other comprehensive loss, after tax of $(2), $(4), $0, $0, $(2) and $0 7 14 6 27 Other comprehensive income (loss) (1) (413) 256 8 6 35 (109) Amounts attributable to noncontrolling interests (1) 42 (26) (1) (3) 11 Balance, June 30, 2023 $ (16) $ (2,238) $ (163) $ 20 $ (609) $ (154) $ (3,160) Net Unrealized Gains (Losses) on Investments with an Allowance for Credit Losses Net Unrealized Gains (Losses) on Other Investments Cumulative 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, 2022, as reported $ (2) $ 930 $ — $ (6) $ (636) $ (100) $ 186 Cumulative effect adjustments from changes in accounting standards (Note 1), after tax of $0, $617, $(1,063), $0, $0 and $0 2,079 (3,585) (1,506) Balance, January 1, 2022, as adjusted (2) 3,009 (3,585) (6) (636) (100) (1,320) Other comprehensive income (loss) before reclassifications, after tax of $0, $1,292, $(835), $3, $0 and $0 (5) (4,884) 3,142 21 (83) (1,809) Reclassification of (gains) losses from accumulated other comprehensive loss, after tax of $1, $(4), $0, $1, $(3) and $0 (1) 15 3 12 29 Other comprehensive income (loss) (6) (4,869) 3,142 24 12 (83) (1,780) Amounts attributable to noncontrolling interests 1 504 (325) (1) 8 187 Balance, June 30, 2022 $ (7) $ (1,356) $ (768) $ 18 $ (625) $ (175) $ (2,913) Balance, January 1, 2023, as reported $ (7) $ (2,469) $ — $ 14 $ (622) $ (200) $ (3,284) Cumulative effect adjustments from changes in accounting standards (Note 1), after tax of $0, $0, $11, $0, $0 and $0 (36) (36) Balance, January 1, 2023, as adjusted (7) (2,469) (36) 14 (622) (200) (3,320) Other comprehensive income (loss) before reclassifications, after tax of $4, $(60), $37, $1, $0 and $0 (16) 225 (140) 6 51 126 Reclassification of losses from accumulated other comprehensive loss, after tax of $(2), $(8), $0, $0, $(4) and $0 7 32 15 54 Other comprehensive income (loss) (9) 257 (140) 6 15 51 180 Amounts attributable to noncontrolling interests — (26) 13 (2) (5) (20) Balance, June 30, 2023 $ (16) $ (2,238) $ (163) $ 20 $ (609) $ (154) $ (3,160) 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 Treasury Stock Loews Corporation repurchased 10.0 million and 6.3 million shares of its common stock at aggregate costs of $593 million and $384 million during the six months ended June 30, 2023 and 2022. Loews Corporation purchased 0.1 million shares of CNA’s common stock at an aggregate cost of $3 million during the six months ended June 30, 2023. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt In June of 2023, Boardwalk Pipelines entered into an amendment to its revolving credit agreement, which extended the maturity date of its revolving credit facility from May 27, 2027 to May 26, 2028, while preserving the two one-year extensions that can be exercised at Boardwalk Pipelines’ election. The available borrowing capacity under the credit agreement will decrease from $1 billion to $912 million after May 27, 2027. In May of 2023 , CNA completed a public offering of $400 million aggregate principal amount of its 5.5% senior notes due June 15, 2033. In May of 2023, Loews Corporation retired at maturity with available cash the outstanding $500 million aggregate principal amount of its 2.6% senior notes. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2023 | |
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 13 : Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (In millions) Non-insurance warranty – CNA Financial $ 407 $ 392 $ 814 $ 774 Transportation and storage of natural gas and NGLs and other services – Boardwalk Pipelines $ 350 $ 315 $ 736 $ 684 Lodging and related services – Loews Hotels & Co 202 190 387 336 Total revenues from contracts with customers 552 505 1,123 1,020 Other revenues 22 29 45 54 Operating revenues and other $ 574 $ 534 $ 1,168 $ 1,074 Receivables from contracts with customers – As of June 30, 2023 and December 31, 2022, receivables from contracts with customers were approximately $145 million and $168 million and are included within Receivables on the Consolidated Condensed Balance Sheets. Deferred revenue – As of June 30, 2023 and December 31, 2022, deferred revenue resulting from contracts with customers was approximately $4.8 billion and is reported as Deferred non-insurance warranty revenue and within Other liabilities on the Consolidated Condensed Balance Sheets. Approximately $660 million and $723 million of revenues recognized during the six months ended June 30, 2023 and 2022 were included in deferred revenue as of December 31, 2022 and 2021. Performance obligations – As of June 30, 2023, approximately $13.7 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 $1.6 billion will be recognized during the remaining six months of 2023 , $2.4 billion in 2024 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 | 6 Months Ended |
Jun. 30, 2023 | |
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 tables present the components of net periodic (benefit) cost for the defined benefit plans: Pension Benefits Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (In millions) Service cost $ 1 $ 1 Interest cost $ 28 $ 18 56 37 Expected return on plan assets (32) (40) (64) (83) Amortization of unrecognized net loss 9 8 18 16 Settlements 1 1 1 2 Regulatory asset decrease 1 2 Net periodic (benefit) cost $ 6 $ (12) $ 12 $ (25) Other Postretirement Benefits Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (In millions) Interest cost $ 1 $ 1 $ 1 Expected return on plan assets (1) (1) (1) Net periodic benefit $ — $ — $ — $ — |
Legal Proceedings
Legal Proceedings | 6 Months Ended |
Jun. 30, 2023 | |
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 believed that the Trial Court ruling included 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. Oral arguments were held on September 14, 2022, and on December 19, 2022, the Supreme Court reversed the Trial Court’s ruling and remanded the case to the Trial Court for further proceedings related to claims not decided by the Trial Court’s ruling. Briefing by the parties at the Trial Court on the remanded issues is scheduled to be completed in the fall of 2023. Other Litigation |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
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 June 30, 2023, the potential amount of future payments CNA could be required to pay under these guarantees was approximately $1.5 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 | 6 Months Ended |
Jun. 30, 2023 | |
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, and the equity method of accounting for Altium Packaging LLC. 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, 2022. 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 June 30, 2023 CNA Financial Boardwalk Pipelines Loews Hotels & Co Corporate Total (In millions) Revenues: Insurance premiums $ 2,347 $ 2,347 Net investment income 575 $ 5 $ 1 $ 11 592 Investment gains (losses) (32) 46 14 Non-insurance warranty revenue 407 407 Operating revenues and other 7 360 207 574 Total 3,304 365 254 11 3,934 Expenses: Insurance claims and policyholders’ benefits 1,779 1,779 Amortization of deferred acquisition costs 403 403 Non-insurance warranty expense 384 384 Operating expenses and other 346 250 194 18 808 Equity method (income) loss (41) 2 (39) Interest 31 39 21 91 Total 2,943 289 153 41 3,426 Income (loss) before income tax 361 76 101 (30) 508 Income tax (expense) benefit (78) (19) (27) 4 (120) Net income (loss) 283 57 74 (26) 388 Amounts attributable to noncontrolling interests (28) (28) Net income (loss) attributable to Loews Corporation $ 255 $ 57 $ 74 $ (26) $ 360 Three Months Ended June 30, 2022 CNA Financial (a) Boardwalk Pipelines Loews Corporate Total (a) (In millions) Revenues: Insurance premiums $ 2,155 $ 2,155 Net investment income (loss) 432 $ (1) $ (65) 366 Investment losses (59) (59) Non-insurance warranty revenue 392 392 Operating revenues and other 6 $ 325 201 2 534 Total 2,926 325 200 (63) 3,388 Expenses: Insurance claims and policyholders’ benefits 1,601 1,601 Amortization of deferred acquisition costs 374 374 Non-insurance warranty expense 367 367 Operating expenses and other 329 231 185 21 766 Equity method (income) loss (53) 2 (51) Interest 28 42 4 22 96 Total 2,699 273 136 45 3,153 Income (loss) before income tax 227 52 64 (108) 235 Income tax (expense) benefit (37) (13) (20) 22 (48) Net income (loss) 190 39 44 (86) 187 Amounts attributable to noncontrolling interests (20) (20) Net income (loss) attributable to Loews Corporation $ 170 $ 39 $ 44 $ (86) $ 167 (a) As of January 1, 2023, ASU 2018-12 was adopted using the modified retrospective method applied as of the transition date of January 1, 2021. Prior period amounts in the financial statements have been adjusted to reflect application of the new standard. For additional information see Note 1. Six Months Ended June 30, 2023 CNA Financial Boardwalk Pipelines Loews Hotels & Co Corporate Total (In millions) Revenues: Insurance premiums $ 4,595 $ 4,595 Net investment income 1,100 $ 6 $ 2 $ 53 1,161 Investment gains (losses) (67) 46 (21) Non-insurance warranty revenue 814 814 Operating revenues and other 14 756 398 1,168 Total 6,456 762 446 53 7,717 Expenses: Insurance claims and policyholders’ benefits 3,432 3,432 Amortization of deferred acquisition costs 782 782 Non-insurance warranty expense 768 768 Operating expenses and other 683 492 377 37 1,589 Equity method (income) loss (72) 5 (67) Interest 59 78 6 43 186 Total 5,724 570 311 85 6,690 Income (loss) before income tax 732 192 135 (32) 1,027 Income tax (expense) benefit (152) (49) (37) 3 (235) Net income (loss) 580 143 98 (29) 792 Amounts attributable to noncontrolling interests (57) (57) Net income (loss) attributable to Loews Corporation $ 523 $ 143 $ 98 $ (29) $ 735 Six Months Ended June 30, 2022 CNA Financial (a) Boardwalk Pipelines Loews Hotels & Co Corporate Total (a) (In millions) Revenues: Insurance premiums $ 4,214 $ 4,214 Net investment income (loss) 880 $ (1) $ (81) 798 Investment losses (70) (70) Non-insurance warranty revenue 774 774 Operating revenues and other 13 $ 706 353 2 1,074 Total 5,811 706 352 (79) 6,790 Expenses: Insurance claims and policyholders’ benefits 3,079 3,079 Amortization of deferred acquisition costs 718 718 Non-insurance warranty expense 721 721 Operating expenses and other 655 448 337 42 1,482 Equity method (income) loss (79) 3 (76) Interest 56 84 8 44 192 Total 5,229 532 266 89 6,116 Income (loss) before income tax 582 174 86 (168) 674 Income tax (expense) benefit (97) (44) (27) 33 (135) Net income (loss) 485 130 59 (135) 539 Amounts attributable to noncontrolling interests (50) (50) Net income (loss) attributable to Loews Corporation $ 435 $ 130 $ 59 $ (135) $ 489 (a) As of January 1, 2023, ASU 2018-12 was adopted using the modified retrospective method applied as of the transition date of January 1, 2021. Prior period amounts in the financial statements have been adjusted to reflect application of the new standard. For additional information see Note 1. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net income attributable to Loews Corporation | $ 360 | $ 167 | $ 735 | $ 489 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 shares | Jun. 30, 2023 shares | |
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On June 16, 2023, Anthony Welters, a director of the Company, adopted a trading plan with respect to the exercise of expiring stock appreciation rights (“SARs”) granted to Mr. Welters as director compensation in 2013 and 2014 (the “Plan”). The Plan is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act. Pursuant to the Plan, if the market price of the Company’s common stock exceeds the exercise price for the applicable SARs by a specified amount during the applicable trading window, the applicable SARs will be exercised and the net shares received by Mr. Welters from such exercise will be sold at market prices. 2,250 SARs expire on each of December 31, 2023, March 31, 2024, June 30, 2024, September 30, 2024 and December 31, 2024. The trading window under the Plan for each such expiration begins on the first trading day of the expiration month and ends on the expiration date. | |
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Anthony Welters [Member] | ||
Trading Arrangements, by Individual | ||
Name | Anthony Welters | |
Title | director | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | June 16, 2023 | |
Arrangement Duration | 396 days | |
Aggregate Available | 2,250 | 2,250 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
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”), a 90% 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, as used herein, the term “Company” 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” means Net income (loss) attributable to Loews Corporation shareholders and the term “subsidiaries” means Loews Corporation’s consolidated subsidiaries. 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 June 30, 2023 and December 31, 2022 and results of operations, comprehensive income (loss) and changes in shareholders’ equity for the three and six months ended June 30, 2023 and 2022 and cash flows for the six months ended June 30, 2023 and 2022, in each case in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Net income for the interim periods is not necessarily indicative of net income for the 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, 2022. |
Accounting changes | Accounting changes – In August of 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-12, “Financial Services – Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts.” The updated accounting guidance requires changes to the measurement and disclosure of long-duration contracts. Entities are required to review, and update if there is a change, cash flow assumptions (including morbidity and persistency) used to measure the liability for future policyholder benefits (“LFPB”) at least annually. The LFPB must also be updated for actual experience at least annually. The LFPB is reflected as Insurance reserves: Future policy benefits on the Consolidated Condensed Balance Sheets. The discount rate assumption used to measure the LFPB must be updated quarterly using an upper-medium grade (low credit risk) fixed-income instrument yield, commonly interpreted as a single-A rate. The effect of changes in cash flow assumptions and actual variances from expected experience are recorded in results of operations within Insurance claims and policyholders’ benefits. The effect of changes in discount rate assumptions are recorded in Other comprehensive income (loss) (“OCI”). In contrast, under legacy accounting guidance, cash flow and discount rate assumptions were locked in unless a premium deficiency emerged. The discount rate assumption under legacy accounting guidance was determined using CNA’s internal investment portfolio yield, which was generally higher than a single-A yield. The new guidance eliminates the need to hold shadow reserves associated with long term care reserves. Under legacy accounting guidance, to the extent that unrealized gains on fixed maturity securities supporting long term care reserves would have resulted in a premium deficiency if realized, a related increase to Insurance reserves was recorded, net of tax, as a reduction of net unrealized gains (losses), through Other comprehensive income (loss) (shadow reserves). The unit of account is the level at which reserves are measured. Under the new guidance, the unit of account used to measure the LFPB is the cohort. Cohorts are comprised of insurance contracts issued no more than one year apart, and must be further disaggregated according to policy benefit and insurance risk characteristics. Under legacy accounting guidance, the LFPB was generally measured at the individual policy level. Under the new guidance, the net premium ratio (“NPR”) is capped at 100%. To the extent that NPR would otherwise exceed 100%, the LFPB is increased, and a loss is recognized immediately in the results of operations. The NPR cap is applied at the cohort level each quarter when NPR is updated. In contrast, under legacy accounting guidance, premium deficiency testing was performed annually at the product level. See Note 6 to the Consolidated Condensed Financial Statements for further explanation of the NPR and LFPB calculations. The Company adopted the new guidance effective January 1, 2023, using the modified retrospective method applied as of the transition date of January 1, 2021. CNA’s run-off long term care business is in scope of the new guidance. All prior periods presented in the financial statements have been adjusted to reflect application of the new guidance. The original locked in discount rate, utilized for purposes of calculating the NPR under the new guidance, was based on the discount rate assumption used to calculate the LFPB immediately prior to the transition date. While the requirements of the new guidance represent a material change from legacy accounting, the new guidance does not impact capital and surplus under statutory accounting practices, cash flows or the underlying economics of the business. In December of 2022, the FASB issued ASU 2022-05, “Financial Services-Insurance (Topic 944): Transition for Sold Contracts” (“ASU 2022-05”). This guidance permits companies to make an election to exclude from the scope of ASU 2018-12 any insurance contracts that have been de-recognized prior to the effective date of ASU 2018-12, assuming that the company has no significant continuing involvement with the de-recognized contracts. In the fourth quarter of 2022, CNA novated its block of legacy annuity business, which was fully-ceded prior to novation. The Company has elected the ASU 2022-05 transition relief, and has excluded the novated legacy annuity business from the scope of ASU 2018-12. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Accounting Standards Update | The following table presents a roll-forward of the pre-transition LFPB balance as of January 1, 2021: (In millions) Balance as of December 31, 2020, as reported $ 13,318 Reclassification of reserves for policyholders currently receiving benefits to Future policy benefits (a) 2,844 De-recognition of shadow reserves (3,293) Re-measurement using an upper-medium grade fixed income instrument yield discount rate 6,255 Other adjustments 8 Balance as of January 1, 2021, as adjusted $ 19,132 (a) In conjunction with the adoption of ASU 2018-12 The following table presents after tax adjustments to the opening balance of Shareholders’ equity and Noncontrolling interests resulting from adoption of ASU 2018-12: Accumulated other comprehensive income (loss) Retained earnings Noncontrolling interests (In millions) Balance as of December 31, 2020, as reported $ 581 $ 14,150 $ 1,321 De-recognition of shadow reserves 2,331 270 Re-measurement of LFPB using an upper-medium grade fixed (4,428) (513) Other adjustments (5) (1) Balance as of January 1, 2021, as adjusted $ (1,516) $ 14,145 $ 1,077 The effects of adoption of ASU 2018-12 on the Consolidated Condensed Statement of Operations were as follows: Three Months Ended June 30, 2022 As Reported Effect of Adoption As Adjusted (In millions) Insurance claims and policyholders’ benefits (a) $ 1,583 $ 18 $ 1,601 Income before income tax 253 (18) 235 Income tax expense (51) 3 (48) Net income 202 (15) 187 Amounts attributable to noncontrolling interests (22) 2 (20) Net income attributable to Loews Corporation 180 (13) 167 Basic net income per share 0.73 (0.05) 0.68 Diluted net income per share 0.73 (0.05) 0.68 (a) The effect of adopting ASU 2018-12 on Insurance claims and policyholders’ benefits is inclusive of the re-measurement gain of $1 million, which is presented parenthetically on the Consolidated Condensed Statement of Operations. Six Months Ended June 30, 2022 As Reported Effect of Adoption As Adjusted (In millions) Insurance claims and policyholders’ benefits (a) $ 3,038 $ 41 $ 3,079 Income before income tax 715 (41) 674 Income tax expense (143) 8 (135) Net income 572 (33) 539 Amounts attributable to noncontrolling interests (54) 4 (50) Net income attributable to Loews Corporation 518 (29) 489 Basic net income per share 2.10 (0.12) 1.98 Diluted net income per share 2.09 (0.11) 1.98 (a) The effect of adopting ASU 2018-12 on Insurance claims and policyholders’ benefits is inclusive of the re-measurement gain of $6 million, which is presented parenthetically on the Consolidated Condensed Statement of Operations. The effects of adoption of ASU 2018-12 on the Consolidated Condensed Balance Sheet were as follows: December 31, 2022 As Reported Effect of Adoption As Adjusted (In millions) Other assets $ 3,941 $ 73 $ 4,014 Total assets 75,494 73 75,567 Claim and claim adjustment expenses (a) 25,099 (2,979) 22,120 Future policy benefits (a) 10,151 3,329 13,480 Total liabilities 60,016 350 60,366 Retained earnings 15,144 (213) 14,931 Accumulated other comprehensive income (loss) (3,284) (36) (3,320) Noncontrolling interests 880 (28) 852 Total equity 15,478 (277) 15,201 (a) In conjunction with the adoption of ASU 2018-12, at January 1, 2023, the long term care reserves for policyholders currently receiving benefits were reclassified from Claim and claim adjustment expense to Future policy benefits. This change was applied retrospectively as of January 1, 2021. The effects of adoption of ASU 2018-12 on the Consolidated Condensed Statement of Comprehensive Income (Loss) were as follows: Three Months Ended June 30, 2022 As Reported Effect of Adoption As Adjusted (In millions) Changes in: Net unrealized losses on other investments $ (1,346) $ (880) $ (2,226) Total unrealized losses on investments (1,348) (880) (2,228) Impact of changes in discount rates used to measure long-duration 1,507 1,507 Other comprehensive (loss) (1,405) 627 (778) Comprehensive (loss) (1,203) 612 (591) Amounts attributable to noncontrolling interests 124 (65) 59 Total comprehensive (loss) attributable to Loews Corporation (1,079) 547 (532) Six Months Ended June 30, 2022 As Reported Effect of Adoption As Adjusted (In millions) Changes in: Net unrealized losses on other investments $ (2,957) $ (1,912) $ (4,869) Total unrealized losses on investments (2,963) (1,912) (4,875) Impact of changes in discount rates used to measure long-duration 3,142 3,142 Other comprehensive (loss) (3,010) 1,230 (1,780) Comprehensive (loss) (2,438) 1,197 (1,241) Amounts attributable to noncontrolling interests 260 (124) 136 Total comprehensive (loss) attributable to Loews Corporation (2,178) 1,073 (1,105) The effects of adoption of ASU 2018-12 on the Consolidated Condensed Statements of Cash Flows were as follows: Six Months Ended June 30, 2022 As Reported Effect of Adoption As Adjusted (In millions) Net income $ 572 $ (33) $ 539 Adjustments to reconcile net income to net cash provided by operating 505 (8) 497 Changes in: Insurance reserves 1,376 41 1,417 The effects of adoption of ASU 2018-12 on segment results of operations of CNA were as follows: Three Months Ended June 30, 2022 As Reported Effect of Adoption As Adjusted (In millions) Insurance claims and policyholders’ benefits (a) $ 1,583 $ 18 $ 1,601 Income before income tax 245 (18) 227 Income tax expense (40) 3 (37) Net income 205 (15) 190 Amounts attributable to noncontrolling interests (22) 2 (20) Net income attributable to Loews Corporation 183 (13) 170 (a) The effect of adopting ASU 2018-12 on Insurance claims and policyholders’ benefits is inclusive of the re-measurement gain of $1 million, which is presented parenthetically on the Consolidated Condensed Statement of Operations. Six Months Ended June 30, 2022 As Reported Effect of Adoption As Adjusted (In millions) Insurance claims and policyholders’ benefits (a) $ 3,038 $ 41 $ 3,079 Income before income tax 623 (41) 582 Income tax expense (105) 8 (97) Net income 518 (33) 485 Amounts attributable to noncontrolling interests (54) 4 (50) Net income attributable to Loews Corporation 464 (29) 435 (a) The effect of adopting ASU 2018-12 on Insurance claims and policyholders’ benefits is inclusive of the re-measurement gain of $6 million, which is presented parenthetically on the Consolidated Condensed Statement of Operations. |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Net Investment Income | Net investment income is as follows: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (In millions) Fixed maturity securities $ 482 $ 441 $ 952 $ 870 Limited partnership investments 55 7 82 27 Short term investments 14 30 Equity securities (a) 21 (11) 33 (9) Income (loss) from trading portfolio (a) 14 (62) 59 (77) Other 29 13 49 28 Total investment income 615 388 1,205 839 Investment expenses (23) (22) (44) (41) Net investment income $ 592 $ 366 $ 1,161 $ 798 (a) Net investment income (loss) recognized due to the change in fair value of equity and trading portfolio securities held as of June 30, 2023 and 2022 $ 15 $ (95) $ 20 $ (120) |
Investment Gains (Losses) | Investment gains (losses) are as follows: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (In millions) Fixed maturity securities: Gross gains $ 8 $ 45 $ 43 $ 71 Gross losses (35) (60) (92) (88) Investment losses on fixed maturity securities (27) (15) (49) (17) Equity securities (a) 3 (71) (11) (109) Derivative instruments 26 55 Short term investments and other (8) 1 (7) 1 Gain on acquisition of a joint venture (see Note 2) 46 46 Investment gains (losses) $ 14 $ (59) $ (21) $ (70) (a) Investment gains (losses) recognized due to the change in fair value of non-redeemable preferred stock included within equity securities held as of June 30, 2023 and 2022 $ 3 $ (70) $ — $ (108) |
Impairment Losses (Gains) on Earnings | The components of available-for-sale impairment losses (gains) recognized in earnings by asset type are presented in the following table. The table includes losses (gains) on securities with an intention to sell and changes in the allowance for credit losses on securities since acquisition date: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (In millions) Fixed maturity securities available-for-sale: Corporate and other bonds $ 9 $ 21 $ 17 $ 29 Asset-backed 8 (1) 8 1 Impairment losses recognized in earnings $ 17 $ 20 $ 25 $ 30 |
Amortized Cost and Fair Values of Fixed Maturity Securities | The following tables present a summary of fixed maturity securities: June 30, 2023 Cost or Amortized Cost Gross Unrealized Gross Unrealized Allowance Estimated (In millions) Fixed maturity securities: Corporate and other bonds $ 24,194 $ 339 $ 1,909 $ 13 $ 22,611 States, municipalities and political 8,262 341 793 7,810 Asset-backed: Residential mortgage-backed 3,133 4 444 2,693 Commercial mortgage-backed 1,843 4 257 7 1,583 Other asset-backed 3,571 9 330 2 3,248 Total asset-backed 8,547 17 1,031 9 7,524 U.S. Treasury and obligations of 130 3 127 Foreign government 700 1 50 651 Redeemable preferred stock 5 5 Fixed maturities available-for-sale 41,838 698 3,786 22 38,728 Fixed maturities trading 199 1 198 Total fixed maturity securities $ 42,037 $ 698 $ 3,787 $ 22 $ 38,926 December 31, 2022 Fixed maturity securities: Corporate and other bonds $ 23,137 $ 301 $ 2,009 $ 21,429 States, municipalities and political 8,918 338 939 8,317 Asset-backed: Residential mortgage-backed 3,073 5 447 2,631 Commercial mortgage-backed 1,886 4 255 1,635 Other asset-backed 3,287 2 361 $ 1 2,927 Total asset-backed 8,246 11 1,063 1 7,193 U.S. Treasury and obligations of 111 1 2 110 Foreign government 617 1 43 575 Redeemable preferred stock 3 3 Fixed maturities available-for-sale 41,032 652 4,056 1 37,627 Fixed maturities trading 70 70 Total fixed maturity securities $ 41,102 $ 652 $ 4,056 $ 1 $ 37,697 |
Available-for-sale Fixed Maturity Securities in Gross Unrealized Loss Position | The available-for-sale fixed maturity 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 June 30, 2023 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 $ 7,681 $ 350 $ 10,087 $ 1,559 $ 17,768 $ 1,909 States, municipalities and political 1,486 64 2,783 729 4,269 793 Asset-backed: Residential mortgage-backed 822 35 1,810 409 2,632 444 Commercial mortgage-backed 325 15 1,171 242 1,496 257 Other asset-backed 739 32 1,982 298 2,721 330 Total asset-backed 1,886 82 4,963 949 6,849 1,031 U.S. Treasury and obligations of 84 2 34 1 118 3 Foreign government 213 8 395 42 608 50 Total fixed maturity securities $ 11,350 $ 506 $ 18,262 $ 3,280 $ 29,612 $ 3,786 December 31, 2022 Fixed maturity securities: Corporate and other bonds $ 15,946 $ 1,585 $ 1,634 $ 424 $ 17,580 $ 2,009 States, municipalities and political 4,079 769 456 170 4,535 939 Asset-backed: Residential mortgage-backed 1,406 144 1,143 303 2,549 447 Commercial mortgage-backed 1,167 159 408 96 1,575 255 Other asset-backed 2,087 262 542 99 2,629 361 Total asset-backed 4,660 565 2,093 498 6,753 1,063 U.S. Treasury and obligations of 76 1 16 1 92 2 Foreign government 473 26 78 17 551 43 Total fixed maturity securities $ 25,234 $ 2,946 $ 4,277 $ 1,110 $ 29,511 $ 4,056 The following table presents the estimated fair value and gross unrealized losses of available-for-sale fixed maturity securities in a gross unrealized loss position for which an allowance for credit loss has not been recorded, by ratings distribution. June 30, 2023 December 31, 2022 Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses (In millions) U.S. Government, Government agencies and Government-sponsored enterprises $ 2,479 $ 334 $ 2,355 $ 337 AAA 1,662 283 1,559 298 AA 4,404 746 4,327 817 A 6,937 703 6,615 749 BBB 12,960 1,513 13,226 1,621 Non-investment grade 1,170 207 1,429 234 Total $ 29,612 $ 3,786 $ 29,511 $ 4,056 |
Allowance for Credit Losses | 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 $413 million, $394 million and $374 million as of June 30, 2023, December 31, 2022 and June 30, 2022 and are excluded from the estimate of expected credit losses and the amortized cost basis in the tables within this Note. Three months ended June 30, 2023 Corporate and Other Bonds Asset-backed Total (In millions) Allowance for credit losses: Balance as of April 1, 2023 $ 1 $ 1 $ 2 Additions to the allowance for credit losses: Securities for which credit losses were not previously recorded 1 7 8 Available-for-sale securities accounted for as PCD assets 11 11 Additional increases to the allowance for credit losses on securities that had an allowance recorded in a previous period 1 1 Total allowance for credit losses $ 13 $ 9 $ 22 Three months ended June 30, 2022 Corporate and Other Bonds Asset-backed Total (In millions) Allowance for credit losses: Balance as of April 1, 2022 $ 12 $ 5 $ 17 Additions to the allowance for credit losses: Available-for-sale securities accounted for as PCD assets 3 3 Reductions to the allowance for credit losses: Write-offs charged against the allowance 12 12 Additional decreases to the allowance for credit losses on securities that had an allowance recorded in a previous period (3) (3) Total allowance for credit losses $ — $ 5 $ 5 Six months ended June 30, 2023 Allowance for credit losses: Balance as of January 1, 2023 $ — $ 1 $ 1 Additions to the allowance for credit losses: Securities for which credit losses were not previously recorded 1 7 8 Available-for-sale securities accounted for as PCD assets 20 20 Reductions to the allowance for credit losses: Securities sold during the period (realized) 6 6 Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis 3 3 Additional increases to the allowance for credit losses on securities that had an allowance recorded in a previous period 1 1 2 Total allowance for credit losses $ 13 $ 9 $ 22 Six months ended June 30, 2022 Allowance for credit losses: Balance as of January 1, 2022 $ 11 $ 7 $ 18 Additions to the allowance for credit losses: Available-for-sale securities accounted for as PCD assets 3 3 Reductions to the allowance for credit losses: Write-offs charged against the allowance 12 12 Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period 1 (5) (4) Total allowance for credit losses $ — $ 5 $ 5 |
Available-for-sale Fixed Maturity Securities by Contractual Maturity | The following table presents available-for-sale fixed maturity securities by contractual maturity. June 30, 2023 December 31, 2022 Cost or Amortized Cost Estimated Fair Cost or Amortized Cost Estimated (In millions) Due in one year or less $ 988 $ 972 $ 1,012 $ 1,001 Due after one year through five years 11,072 10,443 9,880 9,399 Due after five years through ten years 13,445 12,226 13,788 12,453 Due after ten years 16,333 15,087 16,352 14,774 Total $ 41,838 $ 38,728 $ 41,032 $ 37,627 |
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 June 30, 2023 2023 2022 2021 2020 2019 Prior Total (In millions) DSCR ≥1.6x LTV less than 55% $ 9 $ 13 $ 111 $ 33 $ 245 $ 411 LTV 55% to 65% 8 8 LTV greater than 65% 31 11 42 DSCR 1.2x - 1.6x LTV less than 55% $ 28 5 49 14 42 51 189 LTV 55% to 65% 12 43 24 9 88 LTV greater than 65% 58 58 DSCR ≤1.2x LTV less than 55% 35 34 69 LTV 55% to 65% 13 41 43 97 LTV greater than 65% 13 27 21 23 7 91 Total $ 66 $ 249 $ 94 $ 149 $ 183 $ 312 $ 1,053 (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 | 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. June 30, 2023 December 31, 2022 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 $ 216 $ 5 Futures – short 165 $ (2) $ 169 Warrants 95 5 117 $ 6 Interest rate swaps 240 19 240 19 Currency forwards 13 (1) 12 $ (1) |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 United States of America (“U.S.”) Treasury, government-sponsored enterprises, foreign governments and redeemable preferred stock. June 30, 2023 Level 1 Level 2 Level 3 Total (In millions) Fixed maturity securities: Corporate bonds and other $ 137 $ 22,286 $ 971 $ 23,394 States, municipalities and political subdivisions 7,767 43 7,810 Asset-backed 6,641 883 7,524 Fixed maturities available-for-sale 137 36,694 1,897 38,728 Fixed maturities trading 198 198 Total fixed maturities $ 335 $ 36,694 $ 1,897 $ 38,926 Equity securities $ 603 $ 422 $ 26 $ 1,051 Short term and other 4,274 42 4,316 Receivables 20 20 Payable to brokers (54) (54) December 31, 2022 Fixed maturity securities: Corporate bonds and other $ 120 $ 21,187 $ 810 $ 22,117 States, municipalities and political subdivisions 8,274 43 8,317 Asset-backed 6,405 788 7,193 Fixed maturities available-for-sale 120 35,866 1,641 37,627 Fixed maturities trading 1 69 70 Total fixed maturities $ 121 $ 35,935 $ 1,641 $ 37,697 Equity securities $ 669 $ 435 $ 35 $ 1,139 Short term and other 4,539 167 4,706 Receivables 19 19 Payable to brokers (82) (82) |
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 and six months ended June 30, 2023 and 2022: 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 June 30 Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at June 30 2023 Balance, April 1 Included in Net Income Included in OCI Purchases Sales Settlements Transfers into Transfers out of Level 3 Balance, June 30 (In millions) Fixed maturity securities: Corporate bonds and other $ 912 $ (15) $ 68 $ (5) $ 11 $ 971 $ (15) States, municipalities and political subdivisions 44 (1) 43 (1) Asset-backed 859 $ 4 (7) 87 (17) $ (43) 883 (7) Fixed maturities available-for-sale $ 1,815 $ 4 $ (23) $ 155 $ — $ (22) $ 11 $ (43) $ 1,897 $ — $ (23) Equity securities $ 29 $ (1) $ (2) $ 26 $ (1) 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 June 30 Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at June 30 2022 Balance, April 1 Included in Net Income Included in OCI Purchases Sales Settlements Transfers into Transfers out of Level 3 Balance, June 30 (In millions) Fixed maturity securities: Corporate bonds and other $ 915 $ (1) $ (82) $ 51 $ (37) $ 846 $ (81) States, municipalities and political subdivisions 51 (5) 46 (5) Asset-backed 604 8 (52) 92 $ (2) (23) $ 14 641 (52) Fixed maturities available-for-sale $ 1,570 $ 7 $ (139) $ 143 $ (2) $ (60) $ 14 $ — $ 1,533 $ — $ (138) Equity securities $ 44 $ (3) $ (3) $ 9 $ 47 $ (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 June 30 Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at June 30 2023 Balance, January 1 Included in Net Income Included in OCI Purchases Sales Settlements Transfers into Transfers out of Level 3 Balance, June 30 (In millions) Fixed maturity securities: Corporate bonds and other $ 810 $ 9 $ 149 $ (8) $ 11 $ 971 $ 9 States, municipalities and political subdivisions 43 43 Asset-backed 788 $ 9 142 (26) 23 $ (53) 883 (1) Fixed maturities available-for-sale $ 1,641 $ 9 $ 9 $ 291 $ — $ (34) $ 34 $ (53) $ 1,897 $ — $ 8 Equity securities $ 35 $ (7) $ (2) $ 26 $ (7) 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 June 30 Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at June 30 2022 Balance, January 1 Included in Net Income Included in OCI Purchases Sales Settlements Transfers into Transfers out of Level 3 Balance, June 30 (In millions) Fixed maturity securities: Corporate bonds and other $ 937 $ (2) $ (153) $ 118 $ (5) $ (59) $ 10 $ 846 $ (153) States, municipalities and political subdivisions 56 (10) 46 (10) Asset-backed 556 11 (84) 232 (2) (40) 19 $ (51) 641 (83) Fixed maturities available-for-sale $ 1,549 $ 9 $ (247) $ 350 $ (7) $ (99) $ 29 $ (51) $ 1,533 $ — $ (246) Equity securities $ 29 $ 12 $ (3) $ 9 $ 47 $ (1) 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. June 30, 2023 Estimated Valuation Techniques Unobservable Inputs Range (Weighted Average) (In millions) Fixed maturity securities $ 1,415 Discounted cash flow Credit spread 1% — 7% (2%) December 31, 2022 Fixed maturity securities $ 1,177 Discounted cash flow Credit spread 1% — 8% (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 June 30, 2023 Level 1 Level 2 Level 3 Total (In millions) Assets: Other invested assets, primarily mortgage loans $ 1,009 $ 954 $ 954 Liabilities: Short term debt 960 $ 785 169 954 Long term debt 8,090 6,908 659 7,567 December 31, 2022 Assets: Other invested assets, primarily mortgage loans $ 1,040 $ 973 $ 973 Liabilities: Short term debt 853 $ 744 111 855 Long term debt 8,160 7,035 586 7,621 |
Claim and Claim Adjustment Ex_2
Claim and Claim Adjustment Expense Reserves (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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. Six Months Ended June 30 2023 2022 (a) (In millions) Reserves, beginning of year: Gross $ 22,120 $ 21,269 Ceded 5,191 4,969 Net reserves, beginning of year 16,929 16,300 Net incurred claim and claim adjustment expenses: Provision for insured events of current year 2,746 2,452 Increase (decrease) in provision for insured events of prior years 37 30 Amortization of discount 22 22 Total net incurred (b) 2,805 2,504 Net payments attributable to: Current year events (287) (233) Prior year events (2,014) (1,882) Total net payments (2,301) (2,115) Foreign currency translation adjustment and other 57 (222) Net reserves, end of period 17,490 16,467 Ceded reserves, end of period 5,312 5,156 Gross reserves, end of period $ 22,802 $ 21,623 (a) In conjunction with the adoption of ASU 2018-22, at January 1, 2023, long term care reserves for policyholders currently receiving benefits were reclassified from Claim and claim adjustment expenses into Future policy benefits and this change was applied retrospectively as of January 1, 2021. For additional information see Note 1. (b) 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 and uncollectible reinsurance, which are not reflected in the table above. |
Net Prior Year Loss Reserve Development in Property and Casualty Operations | The following table and discussion present details of the net prior year loss reserve development in Property & Casualty Operations and Other Insurance Operations: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (In millions) Medical professional liability $ 1 $ 9 $ 9 Other professional liability and management liability $ (1) 13 (1) 13 Surety (7) (19) (7) (28) Commercial auto 11 21 11 21 General liability 70 41 70 41 Workers’ compensation (96) (82) (98) (84) Property and other 6 (12) 12 (21) Other insurance operations 35 64 35 64 Total pretax (favorable) unfavorable development $ 18 $ 27 $ 31 $ 15 |
Future Policy Benefits Reserv_2
Future Policy Benefits Reserves (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Insurance [Abstract] | |
Schedule of Liability for Future Policy Benefit | The following table summarizes balances and changes in the LFPB. 2023 2022 (In millions) Present value of future net premiums Balance, January 1 $ 3,993 $ 4,735 Effect of changes in discount rate (74) (880) Balance, January 1, at original locked in discount rate 3,919 3,855 Effect of changes in cash flow assumptions (a) Effect of actual variances from expected experience (a) (85) (37) Adjusted balance, January 1 3,834 3,818 Interest accrual 103 105 Net premiums: earned during period (225) (225) Balance, end of period at original locked in discount rate 3,712 3,698 Effect of changes in discount rate 78 246 Balance, June 30 $ 3,790 $ 3,944 Present value of future benefits & expenses Balance, January 1 $ 17,472 $ 22,745 Effect of changes in discount rate (125) (5,942) Balance, January 1, at original locked in discount rate 17,347 16,803 Effect of changes in cash flow assumptions (a) Effect of actual variances from expected experience (a) (51) (43) Adjusted balance, January 1 17,296 16,760 Interest accrual 482 482 Benefit & expense payments (629) (470) Balance, end of period at original locked in discount rate 17,149 16,772 Effect of changes in discount rate 307 1,329 Balance, June 30 $ 17,456 $ 18,101 Net LFPB $ 13,666 $ 14,157 (a) As of June 30, 2023 and 2022 , the re-measurement gain (loss) of $(34) million and $6 million presented parenthetically on the Consolidated Condensed Statement of Operations is comprised of the effect of changes in cash flow assumptions and the effect of actual variances from expected experience. The following table presents earned premiums and interest expense associated with the long term care business recognized on the Condensed Consolidated Statement of Operations. Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (In millions) Earned premiums $ 113 $ 118 $ 228 $ 238 Interest expense 189 189 379 377 The following table presents undiscounted expected future benefit and expense payments and undiscounted expected future gross premiums. June 30, 2023 2022 (In millions) Expected future benefit and expense payments $ 33,287 $ 33,429 Expected future gross premiums 5,536 5,848 The weighted average interest rates in the table below are calculated based on the rate used to discount all future cash flows. June 30, December 31, 2023 2022 2022 Original locked in discount rate 5.25 % 5.29 % 5.27 % Upper-medium grade fixed income instrument discount rate 5.10 4.64 5.23 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income | The tables below present the changes in AOCI by component for the three and six months ended June 30, 2022 and 2023 : Net Unrealized Gains (Losses) on Investments with an Allowance for Credit Losses Net Unrealized Gains (Losses) on Other Investments Cumulative Unrealized Gains (Losses) on Cash Flow Hedges Pension and Postretirement Benefits Foreign Currency Translation Total Accumulated Other Comprehensive Income (Loss) (In millions) Balance, April 1, 2022, as reported $ (6) $ (513) $ — $ 12 $ (630) $ (114) $ (1,251) Cumulative effect adjustments from changes in accounting standards (Note 1), after tax of $0, $270, $(497), $0, $0 and $0 1,154 (2,119) (965) Balance, April 1, 2022, as adjusted (6) 641 (2,119) 12 (630) (114) (2,216) Other comprehensive income (loss) before reclassifications, after tax of $(1), $593, $(400), $5, $2, and $0 (1) (2,240) 1,507 6 (2) (68) (798) Reclassification of (gains) losses from accumulated other comprehensive income, after tax of $1, $(3), $0, $2, $(1) and $0 (1) 14 7 20 Other comprehensive income (loss) (2) (2,226) 1,507 6 5 (68) (778) Amounts attributable to noncontrolling interests 1 229 (156) 7 81 Balance, June 30, 2022 $ (7) $ (1,356) $ (768) $ 18 $ (625) $ (175) $ (2,913) Balance, April 1, 2023 $ (14) $ (1,867) $ (393) $ 12 $ (614) $ (186) $ (3,062) Other comprehensive income (loss) before reclassifications, after tax of $2, $116, $(68), $0, $0 and $0 (8) (427) 256 8 35 (136) Reclassification of (gains) losses from accumulated other comprehensive loss, after tax of $(2), $(4), $0, $0, $(2) and $0 7 14 6 27 Other comprehensive income (loss) (1) (413) 256 8 6 35 (109) Amounts attributable to noncontrolling interests (1) 42 (26) (1) (3) 11 Balance, June 30, 2023 $ (16) $ (2,238) $ (163) $ 20 $ (609) $ (154) $ (3,160) Net Unrealized Gains (Losses) on Investments with an Allowance for Credit Losses Net Unrealized Gains (Losses) on Other Investments Cumulative 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, 2022, as reported $ (2) $ 930 $ — $ (6) $ (636) $ (100) $ 186 Cumulative effect adjustments from changes in accounting standards (Note 1), after tax of $0, $617, $(1,063), $0, $0 and $0 2,079 (3,585) (1,506) Balance, January 1, 2022, as adjusted (2) 3,009 (3,585) (6) (636) (100) (1,320) Other comprehensive income (loss) before reclassifications, after tax of $0, $1,292, $(835), $3, $0 and $0 (5) (4,884) 3,142 21 (83) (1,809) Reclassification of (gains) losses from accumulated other comprehensive loss, after tax of $1, $(4), $0, $1, $(3) and $0 (1) 15 3 12 29 Other comprehensive income (loss) (6) (4,869) 3,142 24 12 (83) (1,780) Amounts attributable to noncontrolling interests 1 504 (325) (1) 8 187 Balance, June 30, 2022 $ (7) $ (1,356) $ (768) $ 18 $ (625) $ (175) $ (2,913) Balance, January 1, 2023, as reported $ (7) $ (2,469) $ — $ 14 $ (622) $ (200) $ (3,284) Cumulative effect adjustments from changes in accounting standards (Note 1), after tax of $0, $0, $11, $0, $0 and $0 (36) (36) Balance, January 1, 2023, as adjusted (7) (2,469) (36) 14 (622) (200) (3,320) Other comprehensive income (loss) before reclassifications, after tax of $4, $(60), $37, $1, $0 and $0 (16) 225 (140) 6 51 126 Reclassification of losses from accumulated other comprehensive loss, after tax of $(2), $(8), $0, $0, $(4) and $0 7 32 15 54 Other comprehensive income (loss) (9) 257 (140) 6 15 51 180 Amounts attributable to noncontrolling interests — (26) 13 (2) (5) (20) Balance, June 30, 2023 $ (16) $ (2,238) $ (163) $ 20 $ (609) $ (154) $ (3,160) |
Reclassification out of Accumulated Other Comprehensive Income | 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 C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 13 : Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (In millions) Non-insurance warranty – CNA Financial $ 407 $ 392 $ 814 $ 774 Transportation and storage of natural gas and NGLs and other services – Boardwalk Pipelines $ 350 $ 315 $ 736 $ 684 Lodging and related services – Loews Hotels & Co 202 190 387 336 Total revenues from contracts with customers 552 505 1,123 1,020 Other revenues 22 29 45 54 Operating revenues and other $ 574 $ 534 $ 1,168 $ 1,074 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Net Periodic (Benefit) Cost Components | The following tables present the components of net periodic (benefit) cost for the defined benefit plans: Pension Benefits Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (In millions) Service cost $ 1 $ 1 Interest cost $ 28 $ 18 56 37 Expected return on plan assets (32) (40) (64) (83) Amortization of unrecognized net loss 9 8 18 16 Settlements 1 1 1 2 Regulatory asset decrease 1 2 Net periodic (benefit) cost $ 6 $ (12) $ 12 $ (25) Other Postretirement Benefits Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (In millions) Interest cost $ 1 $ 1 $ 1 Expected return on plan assets (1) (1) (1) Net periodic benefit $ — $ — $ — $ — |
Segments (Tables)
Segments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Statements of Operations by segment are presented in the following tables. Three Months Ended June 30, 2023 CNA Financial Boardwalk Pipelines Loews Hotels & Co Corporate Total (In millions) Revenues: Insurance premiums $ 2,347 $ 2,347 Net investment income 575 $ 5 $ 1 $ 11 592 Investment gains (losses) (32) 46 14 Non-insurance warranty revenue 407 407 Operating revenues and other 7 360 207 574 Total 3,304 365 254 11 3,934 Expenses: Insurance claims and policyholders’ benefits 1,779 1,779 Amortization of deferred acquisition costs 403 403 Non-insurance warranty expense 384 384 Operating expenses and other 346 250 194 18 808 Equity method (income) loss (41) 2 (39) Interest 31 39 21 91 Total 2,943 289 153 41 3,426 Income (loss) before income tax 361 76 101 (30) 508 Income tax (expense) benefit (78) (19) (27) 4 (120) Net income (loss) 283 57 74 (26) 388 Amounts attributable to noncontrolling interests (28) (28) Net income (loss) attributable to Loews Corporation $ 255 $ 57 $ 74 $ (26) $ 360 Three Months Ended June 30, 2022 CNA Financial (a) Boardwalk Pipelines Loews Corporate Total (a) (In millions) Revenues: Insurance premiums $ 2,155 $ 2,155 Net investment income (loss) 432 $ (1) $ (65) 366 Investment losses (59) (59) Non-insurance warranty revenue 392 392 Operating revenues and other 6 $ 325 201 2 534 Total 2,926 325 200 (63) 3,388 Expenses: Insurance claims and policyholders’ benefits 1,601 1,601 Amortization of deferred acquisition costs 374 374 Non-insurance warranty expense 367 367 Operating expenses and other 329 231 185 21 766 Equity method (income) loss (53) 2 (51) Interest 28 42 4 22 96 Total 2,699 273 136 45 3,153 Income (loss) before income tax 227 52 64 (108) 235 Income tax (expense) benefit (37) (13) (20) 22 (48) Net income (loss) 190 39 44 (86) 187 Amounts attributable to noncontrolling interests (20) (20) Net income (loss) attributable to Loews Corporation $ 170 $ 39 $ 44 $ (86) $ 167 (a) As of January 1, 2023, ASU 2018-12 was adopted using the modified retrospective method applied as of the transition date of January 1, 2021. Prior period amounts in the financial statements have been adjusted to reflect application of the new standard. For additional information see Note 1. Six Months Ended June 30, 2023 CNA Financial Boardwalk Pipelines Loews Hotels & Co Corporate Total (In millions) Revenues: Insurance premiums $ 4,595 $ 4,595 Net investment income 1,100 $ 6 $ 2 $ 53 1,161 Investment gains (losses) (67) 46 (21) Non-insurance warranty revenue 814 814 Operating revenues and other 14 756 398 1,168 Total 6,456 762 446 53 7,717 Expenses: Insurance claims and policyholders’ benefits 3,432 3,432 Amortization of deferred acquisition costs 782 782 Non-insurance warranty expense 768 768 Operating expenses and other 683 492 377 37 1,589 Equity method (income) loss (72) 5 (67) Interest 59 78 6 43 186 Total 5,724 570 311 85 6,690 Income (loss) before income tax 732 192 135 (32) 1,027 Income tax (expense) benefit (152) (49) (37) 3 (235) Net income (loss) 580 143 98 (29) 792 Amounts attributable to noncontrolling interests (57) (57) Net income (loss) attributable to Loews Corporation $ 523 $ 143 $ 98 $ (29) $ 735 Six Months Ended June 30, 2022 CNA Financial (a) Boardwalk Pipelines Loews Hotels & Co Corporate Total (a) (In millions) Revenues: Insurance premiums $ 4,214 $ 4,214 Net investment income (loss) 880 $ (1) $ (81) 798 Investment losses (70) (70) Non-insurance warranty revenue 774 774 Operating revenues and other 13 $ 706 353 2 1,074 Total 5,811 706 352 (79) 6,790 Expenses: Insurance claims and policyholders’ benefits 3,079 3,079 Amortization of deferred acquisition costs 718 718 Non-insurance warranty expense 721 721 Operating expenses and other 655 448 337 42 1,482 Equity method (income) loss (79) 3 (76) Interest 56 84 8 44 192 Total 5,229 532 266 89 6,116 Income (loss) before income tax 582 174 86 (168) 674 Income tax (expense) benefit (97) (44) (27) 33 (135) Net income (loss) 485 130 59 (135) 539 Amounts attributable to noncontrolling interests (50) (50) Net income (loss) attributable to Loews Corporation $ 435 $ 130 $ 59 $ (135) $ 489 (a) As of January 1, 2023, ASU 2018-12 was adopted using the modified retrospective method applied as of the transition date of January 1, 2021. Prior period amounts in the financial statements have been adjusted to reflect application of the new standard. For additional information see Note 1. |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) | Jun. 30, 2023 |
CNA | |
Basis of Presentation [Abstract] | |
Subsidiary ownership percentage | 90% |
Basis of Presentation - Pre-Tra
Basis of Presentation - Pre-Transition LFPB to Adjusted Opening Balance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Present value of future net premiums | |||
Effect of changes in cash flow assumptions | |||
Balance as of January 1, 2021, as adjusted | $ 13,480 | ||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2018-12 [Member] | ||
As Reported | |||
Present value of future net premiums | |||
Balance as of January 1, 2021, as adjusted | $ 10,151 | ||
Reclassification of reserves for policyholders currently receiving benefits to Future policy benefits | |||
Present value of future net premiums | |||
Effect of changes in cash flow assumptions | $ 2,844 | ||
De-recognition of shadow reserves | |||
Present value of future net premiums | |||
Effect of changes in cash flow assumptions | (3,293) | ||
Re-measurement using an upper-medium grade fixed income instrument yield discount rate | |||
Present value of future net premiums | |||
Effect of changes in cash flow assumptions | 6,255 | ||
Other adjustments | |||
Present value of future net premiums | |||
Effect of changes in cash flow assumptions | $ 8 |
Basis of Presentation - Effects
Basis of Presentation - Effects of Adoption of ASU 2018-12, Stockholders' Equity (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Total equity | $ 15,470 | $ 15,314 | $ 15,201 | $ 15,714 | $ 16,576 | $ 17,471 | |
As Reported | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Total equity | 15,478 | 17,695 | 19,175 | ||||
Accumulated Other Comprehensive Income (Loss) | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Total equity | (3,160) | (3,062) | (3,320) | (2,913) | (2,216) | (1,320) | $ (1,516) |
Accumulated Other Comprehensive Income (Loss) | As Reported | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Total equity | (3,284) | (1,251) | 186 | 581 | |||
Accumulated Other Comprehensive Income (Loss) | De-recognition of shadow reserves | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Total equity | 2,331 | ||||||
Accumulated Other Comprehensive Income (Loss) | Re-measurement of LFPB using an upper-medium grade fixed income instrument yield discount rate | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Total equity | (4,428) | ||||||
Accumulated Other Comprehensive Income (Loss) | Other adjustments | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Total equity | |||||||
Retained Earnings | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Total equity | 15,637 | 15,293 | 14,931 | 15,210 | 15,059 | 14,754 | 14,145 |
Retained Earnings | As Reported | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Total equity | 15,144 | 15,097 | 14,776 | 14,150 | |||
Retained Earnings | De-recognition of shadow reserves | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Total equity | |||||||
Retained Earnings | Re-measurement of LFPB using an upper-medium grade fixed income instrument yield discount rate | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Total equity | |||||||
Retained Earnings | Other adjustments | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Total equity | (5) | ||||||
Noncontrolling Interests | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Total equity | $ 867 | $ 863 | 852 | $ 932 | 1,004 | 1,153 | 1,077 |
Noncontrolling Interests | As Reported | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Total equity | $ 880 | $ 1,120 | $ 1,329 | 1,321 | |||
Noncontrolling Interests | De-recognition of shadow reserves | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Total equity | 270 | ||||||
Noncontrolling Interests | Re-measurement of LFPB using an upper-medium grade fixed income instrument yield discount rate | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Total equity | (513) | ||||||
Noncontrolling Interests | Other adjustments | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Total equity | $ (1) |
Basis of Presentation - Effec_2
Basis of Presentation - Effects of Adoption of ASU 2018-12, Operations (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Insurance claims and policyholders’ benefits | $ 1,779 | $ 1,601 | $ 3,432 | $ 3,079 |
Income before income tax | 508 | 235 | 1,027 | 674 |
Income tax expense | (120) | (48) | (235) | (135) |
Net income | 388 | 187 | 792 | 539 |
Amounts attributable to noncontrolling interests | (28) | (20) | (57) | (50) |
Net income attributable to Loews Corporation | $ 360 | $ 167 | $ 735 | $ 489 |
Basic net income per share (in dollars per share) | $ 1.58 | $ 0.68 | $ 3.19 | $ 1.98 |
Diluted net income per share (in dollars per share) | $ 1.58 | $ 0.68 | $ 3.19 | $ 1.98 |
Re-measurement gain of insurance claims and policyholders’ benefits | $ (33) | $ 1 | $ (34) | $ 6 |
As Reported | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Insurance claims and policyholders’ benefits | 1,583 | 3,038 | ||
Income before income tax | 253 | 715 | ||
Income tax expense | (51) | (143) | ||
Net income | 202 | 572 | ||
Amounts attributable to noncontrolling interests | (22) | (54) | ||
Net income attributable to Loews Corporation | $ 180 | $ 518 | ||
Basic net income per share (in dollars per share) | $ 0.73 | $ 2.10 | ||
Diluted net income per share (in dollars per share) | $ 0.73 | $ 2.09 | ||
Effect of Adoption | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Insurance claims and policyholders’ benefits | $ 18 | $ 41 | ||
Income before income tax | (18) | (41) | ||
Income tax expense | 3 | 8 | ||
Net income | (15) | (33) | ||
Amounts attributable to noncontrolling interests | 2 | 4 | ||
Net income attributable to Loews Corporation | $ (13) | $ (29) | ||
Basic net income per share (in dollars per share) | $ (0.05) | $ (0.12) | ||
Diluted net income per share (in dollars per share) | $ (0.05) | $ (0.11) |
Basis of Presentation - Adoptio
Basis of Presentation - Adoption on Consolidated Condensed Balance Sheets (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Other assets | $ 4,146 | $ 4,014 | |||||
Total assets | 77,347 | 75,567 | |||||
Claim and claim adjustment expense | 22,802 | 22,120 | $ 21,623 | $ 21,269 | |||
Future policy benefits | 13,666 | 13,480 | 14,157 | $ 19,132 | |||
Total liabilities | 61,877 | 60,366 | |||||
Retained earnings | 15,637 | 14,931 | |||||
Accumulated other comprehensive loss | (3,160) | (3,320) | |||||
Noncontrolling interests | 867 | 852 | |||||
Total equity | $ 15,470 | $ 15,314 | 15,201 | $ 15,714 | $ 16,576 | 17,471 | |
As Reported | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Other assets | 3,941 | ||||||
Total assets | 75,494 | ||||||
Claim and claim adjustment expense | 25,099 | ||||||
Future policy benefits | 10,151 | $ 13,318 | |||||
Total liabilities | 60,016 | ||||||
Retained earnings | 15,144 | ||||||
Accumulated other comprehensive loss | (3,284) | ||||||
Noncontrolling interests | 880 | ||||||
Total equity | 15,478 | 17,695 | 19,175 | ||||
Effect of Adoption | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Other assets | 73 | ||||||
Total assets | 73 | ||||||
Claim and claim adjustment expense | (2,979) | ||||||
Future policy benefits | 3,329 | ||||||
Total liabilities | 350 | ||||||
Retained earnings | (213) | ||||||
Accumulated other comprehensive loss | (36) | ||||||
Noncontrolling interests | (28) | ||||||
Total equity | $ (277) | $ (1,119) | $ (1,704) |
Basis of Presentation - Adopt_2
Basis of Presentation - Adoption on Consolidated Condensed Statement of Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Changes in: Net unrealized losses on other investments | $ (413) | $ (2,226) | $ 257 | $ (4,869) |
Total unrealized losses on investments | (414) | (2,228) | 248 | (4,875) |
Impact of changes in discount rates used to measure long-duration contract liabilities | 256 | 1,507 | (140) | 3,142 |
Other comprehensive (loss) | (109) | (778) | 180 | (1,780) |
Comprehensive (loss) | 279 | (591) | 972 | (1,241) |
Amounts attributable to noncontrolling interests | (17) | 59 | (77) | 136 |
Total comprehensive (loss) attributable to Loews Corporation | $ 262 | (532) | $ 895 | (1,105) |
As Reported | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Changes in: Net unrealized losses on other investments | (1,346) | (2,957) | ||
Total unrealized losses on investments | (1,348) | (2,963) | ||
Other comprehensive (loss) | (1,405) | (3,010) | ||
Comprehensive (loss) | (1,203) | (2,438) | ||
Amounts attributable to noncontrolling interests | 124 | 260 | ||
Total comprehensive (loss) attributable to Loews Corporation | (1,079) | (2,178) | ||
Effect of Adoption | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Changes in: Net unrealized losses on other investments | (880) | (1,912) | ||
Total unrealized losses on investments | (880) | (1,912) | ||
Impact of changes in discount rates used to measure long-duration contract liabilities | 1,507 | 3,142 | ||
Other comprehensive (loss) | 627 | 1,230 | ||
Comprehensive (loss) | 612 | 1,197 | ||
Amounts attributable to noncontrolling interests | (65) | (124) | ||
Total comprehensive (loss) attributable to Loews Corporation | $ 547 | $ 1,073 |
Basis of Presentation - Adopt_3
Basis of Presentation - Adoption on Consolidated Condensed Statements of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net income | $ 388 | $ 187 | $ 792 | $ 539 |
Adjustments to reconcile net income to net cash provided by operating activities, net | 300 | 497 | ||
Changes in: Insurance reserves | $ 1,165 | 1,417 | ||
As Reported | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net income | 202 | 572 | ||
Adjustments to reconcile net income to net cash provided by operating activities, net | 505 | |||
Changes in: Insurance reserves | 1,376 | |||
Effect of Adoption | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net income | $ (15) | (33) | ||
Adjustments to reconcile net income to net cash provided by operating activities, net | (8) | |||
Changes in: Insurance reserves | $ 41 |
Basis of Presentation - Adopt_4
Basis of Presentation - Adoption on Segment Results of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Insurance claims and policyholders’ benefits | $ 1,779 | $ 1,601 | $ 3,432 | $ 3,079 |
Income before income tax | 508 | 235 | 1,027 | 674 |
Income tax expense | (120) | (48) | (235) | (135) |
Net income | 388 | 187 | 792 | 539 |
Amounts attributable to noncontrolling interests | (28) | (20) | (57) | (50) |
Net income attributable to Loews Corporation | 360 | 167 | 735 | 489 |
Re-measurement gain of insurance claims and policyholders’ benefits | $ (33) | 1 | $ (34) | 6 |
CNA Financial | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Insurance claims and policyholders’ benefits | 1,601 | 3,079 | ||
Income before income tax | 227 | 582 | ||
Income tax expense | (37) | (97) | ||
Net income | 190 | 485 | ||
Amounts attributable to noncontrolling interests | (20) | (50) | ||
Net income attributable to Loews Corporation | 170 | 435 | ||
As Reported | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Insurance claims and policyholders’ benefits | 1,583 | 3,038 | ||
Income before income tax | 253 | 715 | ||
Income tax expense | (51) | (143) | ||
Net income | 202 | 572 | ||
Amounts attributable to noncontrolling interests | (22) | (54) | ||
Net income attributable to Loews Corporation | 180 | 518 | ||
As Reported | CNA Financial | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Insurance claims and policyholders’ benefits | 1,583 | 3,038 | ||
Income before income tax | 245 | 623 | ||
Income tax expense | (40) | (105) | ||
Net income | 205 | 518 | ||
Amounts attributable to noncontrolling interests | (22) | (54) | ||
Net income attributable to Loews Corporation | 183 | 464 | ||
Effect of Adoption | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Insurance claims and policyholders’ benefits | 18 | 41 | ||
Income before income tax | (18) | (41) | ||
Income tax expense | 3 | 8 | ||
Net income | (15) | (33) | ||
Amounts attributable to noncontrolling interests | 2 | 4 | ||
Net income attributable to Loews Corporation | (13) | (29) | ||
Effect of Adoption | CNA Financial | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Insurance claims and policyholders’ benefits | 18 | 41 | ||
Income before income tax | (18) | (41) | ||
Income tax expense | 3 | 8 | ||
Net income | (15) | (33) | ||
Amounts attributable to noncontrolling interests | 2 | 4 | ||
Net income attributable to Loews Corporation | $ (13) | $ (29) |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Asset Acquisition [Line Items] | |||||
Gain on investments | $ 14 | $ (59) | $ (21) | $ (70) | |
Assets | 77,347 | 77,347 | $ 75,567 | ||
Liabilities | 61,877 | 61,877 | $ 60,366 | ||
Joint Venture | |||||
Asset Acquisition [Line Items] | |||||
Gain on investments | 46 | 46 | |||
Loews Hotels And Co | |||||
Asset Acquisition [Line Items] | |||||
Payments to acquire an additional equity interest in joint venture property | 46 | ||||
Loews Hotels And Co | Joint Venture | |||||
Asset Acquisition [Line Items] | |||||
Gain on investments | 46 | ||||
Gain on investments, net of tax | 36 | ||||
Assets | 232 | 232 | |||
Liabilities | $ 120 | $ 120 |
Investments - Net Investment In
Investments - Net Investment Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Net Investment Income [Line Items] | ||||
Investment income, operating | $ 615 | $ 388 | $ 1,205 | $ 839 |
Investment expenses | (23) | (22) | (44) | (41) |
Net investment income | 592 | 366 | 1,161 | 798 |
Net investment income (loss) recognized due to the change in fair value of equity and trading portfolio securities held as of June 30, 2023 and 2022 | 15 | (95) | 20 | (120) |
Fixed maturity securities | ||||
Net Investment Income [Line Items] | ||||
Investment income, operating | 482 | 441 | 952 | 870 |
Limited partnership investments | ||||
Net Investment Income [Line Items] | ||||
Gain (losses) on investments, before investment expenses | 55 | 7 | 82 | 27 |
Short term investments | ||||
Net Investment Income [Line Items] | ||||
Investment income, operating | 14 | 30 | ||
Equity securities | ||||
Net Investment Income [Line Items] | ||||
Gain (losses) on investments, before investment expenses | 21 | (11) | 33 | (9) |
Income (loss) from trading portfolio | ||||
Net Investment Income [Line Items] | ||||
Gain (losses) on investments, before investment expenses | 14 | (62) | 59 | (77) |
Other | ||||
Net Investment Income [Line Items] | ||||
Investment income, operating | $ 29 | $ 13 | $ 49 | $ 28 |
Investments - Investment Gains
Investments - Investment Gains (Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Investment Gains (Losses) [Abstract] | ||||
Investment gains (losses) recognized due to the change in fair value of non-redeemable preferred stock included within equity securities held as of June 30, 2023 and 2022 | $ 14 | $ (59) | $ (21) | $ (70) |
Joint Venture | ||||
Investment Gains (Losses) [Abstract] | ||||
Investment gains (losses) recognized due to the change in fair value of non-redeemable preferred stock included within equity securities held as of June 30, 2023 and 2022 | 46 | 46 | ||
Nonredeemable Preferred Stock | ||||
Investment Gains (Losses) [Abstract] | ||||
Investment gains (losses) recognized due to the change in fair value of non-redeemable preferred stock included within equity securities held as of June 30, 2023 and 2022 | 3 | (70) | 0 | (108) |
Fixed maturity securities | ||||
Investment Gains (Losses) [Abstract] | ||||
Gross gains | 8 | 45 | 43 | 71 |
Gross losses | (35) | (60) | (92) | (88) |
Investment gains (losses) recognized due to the change in fair value of non-redeemable preferred stock included within equity securities held as of June 30, 2023 and 2022 | (27) | (15) | (49) | (17) |
Equity securities | ||||
Investment Gains (Losses) [Abstract] | ||||
Investment gains (losses) recognized due to the change in fair value of non-redeemable preferred stock included within equity securities held as of June 30, 2023 and 2022 | 3 | (71) | (11) | (109) |
Derivative instruments | ||||
Investment Gains (Losses) [Abstract] | ||||
Investment gains (losses) recognized due to the change in fair value of non-redeemable preferred stock included within equity securities held as of June 30, 2023 and 2022 | 26 | 55 | ||
Short term investments and other | ||||
Investment Gains (Losses) [Abstract] | ||||
Investment gains (losses) recognized due to the change in fair value of non-redeemable preferred stock included within equity securities held as of June 30, 2023 and 2022 | $ (8) | $ 1 | $ (7) | $ 1 |
Investments - Available-For-Sal
Investments - Available-For-Sale Impairment Losses Recognized in Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Available-For-Sale Impairment Losses [Abstract] | ||||
Impairment losses recognized in earnings | $ 17 | $ 20 | $ 25 | $ 30 |
Mortgage Receivable | ||||
Available-For-Sale Impairment Losses [Abstract] | ||||
Gain (loss) on mortgage loans due to changes in expected credit losses | 6 | 0 | 6 | 0 |
Corporate and other bonds | ||||
Available-For-Sale Impairment Losses [Abstract] | ||||
Impairment losses recognized in earnings | 9 | 21 | 17 | 29 |
Asset-backed | ||||
Available-For-Sale Impairment Losses [Abstract] | ||||
Impairment losses recognized in earnings | $ 8 | $ (1) | $ 8 | $ 1 |
Investments - Amortized Cost an
Investments - Amortized Cost and Fair Values of Fixed Maturity Securities (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Amortized Cost and Fair Values of Fixed Maturity Securities [Abstract] | ||
Cost or Amortized Cost | $ 42,037 | $ 41,102 |
Gross Unrealized Gains | 698 | 652 |
Gross Unrealized Losses | 3,787 | 4,056 |
Allowance for Credit Losses | 22 | 1 |
Estimated Fair Value | 38,926 | 37,697 |
Corporate and other bonds | ||
Amortized Cost and Fair Values of Fixed Maturity Securities [Abstract] | ||
Cost or Amortized Cost | 24,194 | 23,137 |
Gross Unrealized Gains | 339 | 301 |
Gross Unrealized Losses | 1,909 | 2,009 |
Allowance for Credit Losses | 13 | |
Estimated Fair Value | 22,611 | 21,429 |
States, municipalities and political subdivisions | ||
Amortized Cost and Fair Values of Fixed Maturity Securities [Abstract] | ||
Cost or Amortized Cost | 8,262 | 8,918 |
Gross Unrealized Gains | 341 | 338 |
Gross Unrealized Losses | 793 | 939 |
Allowance for Credit Losses | ||
Estimated Fair Value | 7,810 | 8,317 |
Residential mortgage-backed | ||
Amortized Cost and Fair Values of Fixed Maturity Securities [Abstract] | ||
Cost or Amortized Cost | 3,133 | 3,073 |
Gross Unrealized Gains | 4 | 5 |
Gross Unrealized Losses | 444 | 447 |
Allowance for Credit Losses | ||
Estimated Fair Value | 2,693 | 2,631 |
Commercial mortgage-backed | ||
Amortized Cost and Fair Values of Fixed Maturity Securities [Abstract] | ||
Cost or Amortized Cost | 1,843 | 1,886 |
Gross Unrealized Gains | 4 | 4 |
Gross Unrealized Losses | 257 | 255 |
Allowance for Credit Losses | 7 | |
Estimated Fair Value | 1,583 | 1,635 |
Other asset-backed | ||
Amortized Cost and Fair Values of Fixed Maturity Securities [Abstract] | ||
Cost or Amortized Cost | 3,571 | 3,287 |
Gross Unrealized Gains | 9 | 2 |
Gross Unrealized Losses | 330 | 361 |
Allowance for Credit Losses | 2 | 1 |
Estimated Fair Value | 3,248 | 2,927 |
Asset-backed | ||
Amortized Cost and Fair Values of Fixed Maturity Securities [Abstract] | ||
Cost or Amortized Cost | 8,547 | 8,246 |
Gross Unrealized Gains | 17 | 11 |
Gross Unrealized Losses | 1,031 | 1,063 |
Allowance for Credit Losses | 9 | 1 |
Estimated Fair Value | 7,524 | 7,193 |
U.S. Treasury and obligations of government-sponsored enterprises | ||
Amortized Cost and Fair Values of Fixed Maturity Securities [Abstract] | ||
Cost or Amortized Cost | 130 | 111 |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | 3 | 2 |
Allowance for Credit Losses | ||
Estimated Fair Value | 127 | 110 |
Foreign government | ||
Amortized Cost and Fair Values of Fixed Maturity Securities [Abstract] | ||
Cost or Amortized Cost | 700 | 617 |
Gross Unrealized Gains | 1 | 1 |
Gross Unrealized Losses | 50 | 43 |
Allowance for Credit Losses | ||
Estimated Fair Value | 651 | 575 |
Redeemable preferred stock | ||
Amortized Cost and Fair Values of Fixed Maturity Securities [Abstract] | ||
Cost or Amortized Cost | 5 | 3 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Allowance for Credit Losses | ||
Estimated Fair Value | 5 | 3 |
Fixed maturities available-for-sale | ||
Amortized Cost and Fair Values of Fixed Maturity Securities [Abstract] | ||
Cost or Amortized Cost | 41,838 | 41,032 |
Gross Unrealized Gains | 698 | 652 |
Gross Unrealized Losses | 3,786 | 4,056 |
Allowance for Credit Losses | 22 | 1 |
Estimated Fair Value | 38,728 | 37,627 |
Fixed maturities trading | ||
Amortized Cost and Fair Values of Fixed Maturity Securities [Abstract] | ||
Cost or Amortized Cost | 199 | 70 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | 1 | |
Allowance for Credit Losses | ||
Estimated Fair Value | $ 198 | $ 70 |
Investments - Available-for-s_2
Investments - Available-for-sale Securities in Gross Unrealized Loss Position (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Gross Unrealized Losses [Abstract] | ||
Total, Estimated Fair Value | $ 29,612 | $ 29,511 |
Total, Gross Unrealized Losses | 3,786 | 4,056 |
Fixed maturity securities | ||
Gross Unrealized Losses [Abstract] | ||
Less than 12 Months, Estimated Fair Value | 11,350 | 25,234 |
Less than 12 Months, Gross Unrealized Losses | 506 | 2,946 |
12 Months or Longer, Estimated Fair Value | 18,262 | 4,277 |
12 Months or Longer, Gross Unrealized Losses | 3,280 | 1,110 |
Total, Estimated Fair Value | 29,612 | 29,511 |
Total, Gross Unrealized Losses | 3,786 | 4,056 |
Corporate bonds and other | ||
Gross Unrealized Losses [Abstract] | ||
Less than 12 Months, Estimated Fair Value | 7,681 | 15,946 |
Less than 12 Months, Gross Unrealized Losses | 350 | 1,585 |
12 Months or Longer, Estimated Fair Value | 10,087 | 1,634 |
12 Months or Longer, Gross Unrealized Losses | 1,559 | 424 |
Total, Estimated Fair Value | 17,768 | 17,580 |
Total, Gross Unrealized Losses | 1,909 | 2,009 |
States, municipalities and political subdivisions | ||
Gross Unrealized Losses [Abstract] | ||
Less than 12 Months, Estimated Fair Value | 1,486 | 4,079 |
Less than 12 Months, Gross Unrealized Losses | 64 | 769 |
12 Months or Longer, Estimated Fair Value | 2,783 | 456 |
12 Months or Longer, Gross Unrealized Losses | 729 | 170 |
Total, Estimated Fair Value | 4,269 | 4,535 |
Total, Gross Unrealized Losses | 793 | 939 |
Residential mortgage-backed | ||
Gross Unrealized Losses [Abstract] | ||
Less than 12 Months, Estimated Fair Value | 822 | 1,406 |
Less than 12 Months, Gross Unrealized Losses | 35 | 144 |
12 Months or Longer, Estimated Fair Value | 1,810 | 1,143 |
12 Months or Longer, Gross Unrealized Losses | 409 | 303 |
Total, Estimated Fair Value | 2,632 | 2,549 |
Total, Gross Unrealized Losses | 444 | 447 |
Commercial mortgage-backed | ||
Gross Unrealized Losses [Abstract] | ||
Less than 12 Months, Estimated Fair Value | 325 | 1,167 |
Less than 12 Months, Gross Unrealized Losses | 15 | 159 |
12 Months or Longer, Estimated Fair Value | 1,171 | 408 |
12 Months or Longer, Gross Unrealized Losses | 242 | 96 |
Total, Estimated Fair Value | 1,496 | 1,575 |
Total, Gross Unrealized Losses | 257 | 255 |
Other asset-backed | ||
Gross Unrealized Losses [Abstract] | ||
Less than 12 Months, Estimated Fair Value | 739 | 2,087 |
Less than 12 Months, Gross Unrealized Losses | 32 | 262 |
12 Months or Longer, Estimated Fair Value | 1,982 | 542 |
12 Months or Longer, Gross Unrealized Losses | 298 | 99 |
Total, Estimated Fair Value | 2,721 | 2,629 |
Total, Gross Unrealized Losses | 330 | 361 |
Total asset-backed | ||
Gross Unrealized Losses [Abstract] | ||
Less than 12 Months, Estimated Fair Value | 1,886 | 4,660 |
Less than 12 Months, Gross Unrealized Losses | 82 | 565 |
12 Months or Longer, Estimated Fair Value | 4,963 | 2,093 |
12 Months or Longer, Gross Unrealized Losses | 949 | 498 |
Total, Estimated Fair Value | 6,849 | 6,753 |
Total, Gross Unrealized Losses | 1,031 | 1,063 |
U.S. Treasury and obligations of government-sponsored enterprises | ||
Gross Unrealized Losses [Abstract] | ||
Less than 12 Months, Estimated Fair Value | 84 | 76 |
Less than 12 Months, Gross Unrealized Losses | 2 | 1 |
12 Months or Longer, Estimated Fair Value | 34 | 16 |
12 Months or Longer, Gross Unrealized Losses | 1 | 1 |
Total, Estimated Fair Value | 118 | 92 |
Total, Gross Unrealized Losses | 3 | 2 |
Foreign government | ||
Gross Unrealized Losses [Abstract] | ||
Less than 12 Months, Estimated Fair Value | 213 | 473 |
Less than 12 Months, Gross Unrealized Losses | 8 | 26 |
12 Months or Longer, Estimated Fair Value | 395 | 78 |
12 Months or Longer, Gross Unrealized Losses | 42 | 17 |
Total, Estimated Fair Value | 608 | 551 |
Total, Gross Unrealized Losses | $ 50 | $ 43 |
Investments - Schedule of Unrea
Investments - Schedule of Unrealized Loss (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | $ 29,612 | $ 29,511 |
Gross Unrealized Losses | 3,786 | 4,056 |
Additional impairment losses | 0 | |
AAA | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 1,662 | 1,559 |
Gross Unrealized Losses | 283 | 298 |
AA | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 4,404 | 4,327 |
Gross Unrealized Losses | 746 | 817 |
A | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 6,937 | 6,615 |
Gross Unrealized Losses | 703 | 749 |
BBB | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 12,960 | 13,226 |
Gross Unrealized Losses | 1,513 | 1,621 |
U.S. Government, Government agencies and Government-sponsored enterprises | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 2,479 | 2,355 |
Gross Unrealized Losses | 334 | 337 |
Non-investment grade | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 1,170 | 1,429 |
Gross Unrealized Losses | $ 207 | $ 234 |
Investments - Allowance for Cre
Investments - Allowance for Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |||||
Accrued interest receivables on available-for-sale fixed maturity securities | $ 413 | $ 374 | $ 413 | $ 374 | $ 394 |
Debt Securities, Available-for-Sale, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 2 | 17 | 1 | 18 | |
Securities for which credit losses were not previously recorded | 8 | 8 | |||
Available-for-sale securities accounted for as PCD assets | 11 | 3 | 20 | 3 | |
Write-offs charged against the allowance | 12 | 12 | |||
Securities sold during the period (realized) | 6 | ||||
Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis | 3 | ||||
Additional increases to the allowance for credit losses on securities that had an allowance recorded in a previous period | 1 | (3) | 2 | (4) | |
Ending balance | 22 | 5 | 22 | 5 | |
Corporate bonds and other | |||||
Debt Securities, Available-for-Sale, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 1 | 12 | 0 | 11 | |
Securities for which credit losses were not previously recorded | 1 | 1 | |||
Available-for-sale securities accounted for as PCD assets | 11 | 20 | |||
Write-offs charged against the allowance | 12 | 12 | |||
Securities sold during the period (realized) | 6 | ||||
Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis | 3 | ||||
Additional increases to the allowance for credit losses on securities that had an allowance recorded in a previous period | 1 | 1 | |||
Ending balance | 13 | 0 | 13 | 0 | |
Asset-backed | |||||
Debt Securities, Available-for-Sale, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 1 | 5 | 1 | 7 | |
Securities for which credit losses were not previously recorded | 7 | 7 | |||
Available-for-sale securities accounted for as PCD assets | 3 | 3 | |||
Write-offs charged against the allowance | |||||
Securities sold during the period (realized) | |||||
Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis | |||||
Additional increases to the allowance for credit losses on securities that had an allowance recorded in a previous period | 1 | (3) | 1 | (5) | |
Ending balance | $ 9 | $ 5 | $ 9 | $ 5 |
Investments - Available-for-s_3
Investments - Available-for-sale Fixed Maturity Securities by Contractual Maturity (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Cost or Amortized Cost | ||
Cost or Amortized Cost | $ 42,037 | $ 41,102 |
Estimated Fair Value | ||
Estimated Fair Value | 38,926 | 37,697 |
Available-for-sale Fixed Maturities | ||
Cost or Amortized Cost | ||
Due in one year or less | 988 | 1,012 |
Due after one year through five years | 11,072 | 9,880 |
Due after five years through ten years | 13,445 | 13,788 |
Due after ten years | 16,333 | 16,352 |
Cost or Amortized Cost | 41,838 | 41,032 |
Estimated Fair Value | ||
Due in one year or less | 972 | 1,001 |
Due after one year through five years | 10,443 | 9,399 |
Due after five years through ten years | 12,226 | 12,453 |
Due after ten years | 15,087 | 14,774 |
Estimated Fair Value | $ 38,728 | $ 37,627 |
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 | Jun. 30, 2023 USD ($) |
Credit Quality Information [Abstract] | |
2023 | $ 66 |
2022 | 249 |
2021 | 94 |
2020 | 149 |
2019 | 183 |
Prior | 312 |
Total | 1,053 |
DSCR Greater than or Equal to 1.6x, LTV Less than 55% | |
Credit Quality Information [Abstract] | |
2023 | |
2022 | 9 |
2021 | 13 |
2020 | 111 |
2019 | 33 |
Prior | 245 |
Total | 411 |
DSCR Greater than or Equal to 1.6x, LTV 55% to 65% | |
Credit Quality Information [Abstract] | |
2023 | |
2022 | |
2021 | |
2020 | |
2019 | 8 |
Prior | |
Total | 8 |
DSCR Greater than or Equal to 1.6x, LTV Greater than 65% | |
Credit Quality Information [Abstract] | |
2023 | |
2022 | 31 |
2021 | 11 |
2020 | |
2019 | |
Prior | |
Total | 42 |
DSCR Between 1.2 to 1.6x, LTV Less than 55% | |
Credit Quality Information [Abstract] | |
2023 | 28 |
2022 | 5 |
2021 | 49 |
2020 | 14 |
2019 | 42 |
Prior | 51 |
Total | 189 |
DSCR Between 1.2 to 1.6x, LTV 55% to 65% | |
Credit Quality Information [Abstract] | |
2023 | 12 |
2022 | 43 |
2021 | |
2020 | 24 |
2019 | |
Prior | 9 |
Total | 88 |
DSCR Between 1.2 to 1.6x, LTV Greater than 65% | |
Credit Quality Information [Abstract] | |
2023 | |
2022 | 58 |
2021 | |
2020 | |
2019 | |
Prior | |
Total | 58 |
DSCR Less than or Equal to 1.2x, LTV Less than 55% | |
Credit Quality Information [Abstract] | |
2023 | |
2022 | 35 |
2021 | |
2020 | |
2019 | 34 |
Prior | |
Total | 69 |
DSCR Three, LTV 55 to 65% | |
Credit Quality Information [Abstract] | |
2023 | 13 |
2022 | 41 |
2021 | |
2020 | |
2019 | 43 |
Prior | |
Total | 97 |
DSCR Less than or Equal to 1.2x, LTV Greater than 65% | |
Credit Quality Information [Abstract] | |
2023 | 13 |
2022 | 27 |
2021 | 21 |
2020 | |
2019 | 23 |
Prior | 7 |
Total | $ 91 |
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 | Jun. 30, 2023 | Dec. 31, 2022 |
Futures | Options – purchased | ||
Gross Estimated Fair Values of Derivative Positions [Abstract] | ||
Contractual/notional amount | $ 216 | |
Asset, estimated fair value | 5 | |
Liability, estimated fair value | ||
Futures | Futures – short | ||
Gross Estimated Fair Values of Derivative Positions [Abstract] | ||
Contractual/notional amount | 165 | 169 |
Asset, estimated fair value | ||
Liability, estimated fair value | (2) | |
Warrants | ||
Gross Estimated Fair Values of Derivative Positions [Abstract] | ||
Contractual/notional amount | 95 | 117 |
Asset, estimated fair value | 5 | 6 |
Liability, estimated fair value | ||
Interest rate swaps | ||
Gross Estimated Fair Values of Derivative Positions [Abstract] | ||
Contractual/notional amount | 240 | 240 |
Asset, estimated fair value | 19 | 19 |
Liability, estimated fair value | ||
Currency forwards | ||
Gross Estimated Fair Values of Derivative Positions [Abstract] | ||
Contractual/notional amount | 13 | 12 |
Asset, estimated fair value | ||
Liability, estimated fair value | $ (1) | $ (1) |
Investments - Investment Commit
Investments - Investment Commitments (Details) - Investments in Assets Requiring Future Purchase, Sale or Funding Commitments $ in Millions | Jun. 30, 2023 USD ($) |
Investment Commitments [Abstract] | |
Commitments to purchase or fund investments | $ 1,500 |
Commitments to sell investments | $ 60 |
Fair Value - Assets and Liabili
Fair Value - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Debt securities | $ 38,728 | $ 37,627 |
Debt securities, trading | 198 | 70 |
Debt securities | 38,926 | 37,697 |
Equity securities | 1,051 | 1,139 |
Short term and other | 4,316 | 4,706 |
Receivables | 20 | 19 |
Payable to brokers | (54) | (82) |
Corporate bonds and other | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Debt securities | 23,394 | 22,117 |
States, municipalities and political subdivisions | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Debt securities | 7,810 | 8,317 |
Asset-backed | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Debt securities | 7,524 | 7,193 |
Level 1 | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Debt securities | 137 | 120 |
Debt securities, trading | 198 | 1 |
Debt securities | 335 | 121 |
Equity securities | 603 | 669 |
Short term and other | 4,274 | 4,539 |
Receivables | ||
Payable to brokers | (54) | (82) |
Level 1 | Corporate bonds and other | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Debt securities | 137 | 120 |
Level 1 | States, municipalities and political subdivisions | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Debt securities | ||
Level 1 | Asset-backed | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Debt securities | ||
Level 2 | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Debt securities | 36,694 | 35,866 |
Debt securities, trading | 69 | |
Debt securities | 36,694 | 35,935 |
Equity securities | 422 | 435 |
Short term and other | 42 | 167 |
Receivables | 20 | 19 |
Payable to brokers | ||
Level 2 | Corporate bonds and other | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Debt securities | 22,286 | 21,187 |
Level 2 | States, municipalities and political subdivisions | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Debt securities | 7,767 | 8,274 |
Level 2 | Asset-backed | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Debt securities | 6,641 | 6,405 |
Level 3 | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Debt securities | 1,897 | 1,641 |
Debt securities, trading | ||
Debt securities | 1,897 | 1,641 |
Equity securities | 26 | 35 |
Short term and other | ||
Receivables | ||
Payable to brokers | ||
Level 3 | Corporate bonds and other | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Debt securities | 971 | 810 |
Level 3 | States, municipalities and political subdivisions | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Debt securities | 43 | 43 |
Level 3 | Asset-backed | ||
Assets and Liabilities Measured at Fair Value [Abstract] | ||
Debt securities | $ 883 | $ 788 |
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 | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Corporate bonds and other | ||||
Reconciliations for All Assets and Liabilities [Roll Forward] | ||||
Balance at beginning of period | $ 912 | $ 915 | $ 810 | $ 937 |
Included in Net Income | (1) | (2) | ||
Included in OCI | (15) | (82) | 9 | (153) |
Purchases | 68 | 51 | 149 | 118 |
Sales | (5) | |||
Settlements | (5) | (37) | (8) | (59) |
Transfers into Level 3 | 11 | 11 | 10 | |
Transfers out of Level 3 | ||||
Balance at end of period | 971 | 846 | 971 | 846 |
Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at June 30 | ||||
Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at June 30 | (15) | (81) | 9 | (153) |
States, municipalities and political subdivisions | ||||
Reconciliations for All Assets and Liabilities [Roll Forward] | ||||
Balance at beginning of period | 44 | 51 | 43 | 56 |
Included in Net Income | ||||
Included in OCI | (1) | (5) | (10) | |
Purchases | ||||
Sales | ||||
Settlements | ||||
Transfers into Level 3 | ||||
Transfers out of Level 3 | ||||
Balance at end of period | 43 | 46 | 43 | 46 |
Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at June 30 | ||||
Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at June 30 | (1) | (5) | (10) | |
Asset-backed | ||||
Reconciliations for All Assets and Liabilities [Roll Forward] | ||||
Balance at beginning of period | 859 | 604 | 788 | 556 |
Included in Net Income | 4 | 8 | 9 | 11 |
Included in OCI | (7) | (52) | (84) | |
Purchases | 87 | 92 | 142 | 232 |
Sales | (2) | (2) | ||
Settlements | (17) | (23) | (26) | (40) |
Transfers into Level 3 | 14 | 23 | 19 | |
Transfers out of Level 3 | (43) | (53) | (51) | |
Balance at end of period | 883 | 641 | 883 | 641 |
Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at June 30 | ||||
Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at June 30 | (7) | (52) | (1) | (83) |
Fixed maturities available-for-sale | ||||
Reconciliations for All Assets and Liabilities [Roll Forward] | ||||
Balance at beginning of period | 1,815 | 1,570 | 1,641 | 1,549 |
Included in Net Income | 4 | 7 | 9 | 9 |
Included in OCI | (23) | (139) | 9 | (247) |
Purchases | 155 | 143 | 291 | 350 |
Sales | 0 | (2) | 0 | (7) |
Settlements | (22) | (60) | (34) | (99) |
Transfers into Level 3 | 11 | 14 | 34 | 29 |
Transfers out of Level 3 | (43) | 0 | (53) | (51) |
Balance at end of period | 1,897 | 1,533 | 1,897 | 1,533 |
Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at June 30 | 0 | 0 | 0 | 0 |
Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at June 30 | (23) | (138) | 8 | (246) |
Equity securities | ||||
Reconciliations for All Assets and Liabilities [Roll Forward] | ||||
Balance at beginning of period | 29 | 44 | 35 | 29 |
Included in Net Income | (1) | (3) | (7) | |
Included in OCI | ||||
Purchases | 12 | |||
Sales | (2) | (3) | (2) | (3) |
Settlements | 9 | 9 | ||
Transfers into Level 3 | ||||
Transfers out of Level 3 | ||||
Balance at end of period | 26 | 47 | 26 | 47 |
Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at June 30 | (1) | (3) | (7) | (1) |
Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at June 30 |
Fair Value - Significant Unobse
Fair Value - Significant Unobservable Inputs (Details) $ in Millions | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Quantitative Information About the Significant Unobservable Inputs [Abstract] | ||
Estimated Fair Value | $ 38,926 | $ 37,697 |
Level 3 | Fixed maturity securities | ||
Quantitative Information About the Significant Unobservable Inputs [Abstract] | ||
Estimated Fair Value | $ 1,415 | $ 1,177 |
Debt Securities, Available-for-sale, Valuation Technique [Extensible List] | Discounted cash flow | Discounted cash flow |
Debt Securities, Available-for-sale, Measurement Input [Extensible List] | Credit spread | Credit spread |
Level 3 | Fixed maturity securities | Credit spread | Minimum | Discounted cash flow | ||
Quantitative Information About the Significant Unobservable Inputs [Abstract] | ||
Measurement input | 0.01 | 0.01 |
Level 3 | Fixed maturity securities | Credit spread | Maximum | Discounted cash flow | ||
Quantitative Information About the Significant Unobservable Inputs [Abstract] | ||
Measurement input | 0.07 | 0.08 |
Level 3 | Fixed maturity securities | Credit spread | Weighted Average | Discounted cash flow | ||
Quantitative Information About the Significant Unobservable Inputs [Abstract] | ||
Measurement input | 0.02 | 0.02 |
Fair Value - Financial Assets a
Fair Value - Financial Assets and Liabilities Not Measured at Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Carrying Amount | ||
Assets: | ||
Other invested assets, primarily mortgage loans | $ 1,009 | $ 1,040 |
Liabilities: | ||
Short term debt | 960 | 853 |
Long term debt | 8,090 | 8,160 |
Estimated Fair Value | ||
Assets: | ||
Other invested assets, primarily mortgage loans | 954 | 973 |
Liabilities: | ||
Short term debt | 954 | 855 |
Long term debt | 7,567 | 7,621 |
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 | 785 | 744 |
Long term debt | 6,908 | 7,035 |
Estimated Fair Value | Level 3 | ||
Assets: | ||
Other invested assets, primarily mortgage loans | 954 | 973 |
Liabilities: | ||
Short term debt | 169 | 111 |
Long term debt | $ 659 | $ 586 |
Claim and Claim Adjustment Ex_3
Claim and Claim Adjustment Expense Reserves - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Insurance [Abstract] | ||||
Loss from catastrophes, net of reinsurance | $ 68 | $ 37 | $ 120 | $ 57 |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Pretax (favorable) unfavorable development | 18 | 27 | 31 | 15 |
Commercial Property and Casualty Operations | CNA Financial | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Pretax (favorable) unfavorable development | (17) | (37) | (4) | (49) |
Other Insurance Operations | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Pretax (favorable) unfavorable development | 35 | 64 | 35 | 64 |
Other Insurance Operations | CNA Financial | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Pretax (favorable) unfavorable development | $ 35 | $ 64 | $ 35 | $ 64 |
Claim and Claim Adjustment Ex_4
Claim and Claim Adjustment Expense Reserves - Reconciliation of Claim and Claim Adjustment Expense Reserves (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Gross reserves, beginning of year | $ 22,120 | $ 21,269 |
Ceded reserves, beginning of year | 5,191 | 4,969 |
Net reserves, beginning of year | 16,929 | 16,300 |
Net incurred claim and claim adjustment expenses: | ||
Provision for insured events of current year | 2,746 | 2,452 |
Increase (decrease) in provision for insured events of prior years | 37 | 30 |
Amortization of discount | 22 | 22 |
Total net incurred | 2,805 | 2,504 |
Net payments attributable to: | ||
Current year events | (287) | (233) |
Prior year events | (2,014) | (1,882) |
Total net payments | (2,301) | (2,115) |
Foreign currency translation adjustment and other | 57 | (222) |
Net reserves, end of period | 17,490 | 16,467 |
Ceded reserves, end of period | 5,312 | 5,156 |
Gross reserves, end of period | $ 22,802 | $ 21,623 |
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 | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Net Prior Year Development [Abstract] | ||||
Total pretax (favorable) unfavorable development | $ 18 | $ 27 | $ 31 | $ 15 |
Medical professional liability | ||||
Net Prior Year Development [Abstract] | ||||
Total pretax (favorable) unfavorable development | 1 | 9 | 9 | |
Other professional liability and management liability | ||||
Net Prior Year Development [Abstract] | ||||
Total pretax (favorable) unfavorable development | (1) | 13 | (1) | 13 |
Surety | ||||
Net Prior Year Development [Abstract] | ||||
Total pretax (favorable) unfavorable development | (7) | (19) | (7) | (28) |
Commercial auto | ||||
Net Prior Year Development [Abstract] | ||||
Total pretax (favorable) unfavorable development | 11 | 21 | 11 | 21 |
General liability | ||||
Net Prior Year Development [Abstract] | ||||
Total pretax (favorable) unfavorable development | 70 | 41 | 70 | 41 |
Workers’ compensation | ||||
Net Prior Year Development [Abstract] | ||||
Total pretax (favorable) unfavorable development | (96) | (82) | (98) | (84) |
Property and other | ||||
Net Prior Year Development [Abstract] | ||||
Total pretax (favorable) unfavorable development | 6 | (12) | 12 | (21) |
Other insurance operations | ||||
Net Prior Year Development [Abstract] | ||||
Total pretax (favorable) unfavorable development | 35 | 64 | 35 | 64 |
Other insurance operations | CNA Financial | ||||
Net Prior Year Development [Abstract] | ||||
Total pretax (favorable) unfavorable development | 35 | 64 | 35 | 64 |
Commercial Property and Casualty Operations | CNA Financial | ||||
Net Prior Year Development [Abstract] | ||||
Total pretax (favorable) unfavorable development | $ (17) | $ (37) | $ (4) | $ (49) |
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 | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2010 | Dec. 31, 2022 | |
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 | $ 15 | $ 11 | $ 23 | $ 23 | ||
Cumulative amounts ceded under loss portfolio transfer | 3,500 | 3,500 | $ 3,500 | |||
Unrecognized deferred retroactive reinsurance benefit | 402 | 402 | $ 425 | |||
Fair value of collateral trust account | $ 2,400 | $ 2,400 |
Future Policy Benefits Reserv_3
Future Policy Benefits Reserves - Summary of Balances and Changes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Present value of future net premiums | |||||||
Balance, January 1 | $ 3,993 | $ 4,735 | |||||
Effect of changes in discount rate | $ 78 | $ 246 | $ 78 | $ 246 | (74) | (880) | |
Balance, January 1, at original locked in discount rate | 3,919 | 3,855 | |||||
Effect of changes in cash flow assumptions | |||||||
Expect of actual variances from expected experience | (85) | (37) | |||||
Adjusted balance, January 1 | 3,712 | 3,698 | 3,712 | 3,698 | 3,834 | 3,818 | |
Interest accrual | 103 | 105 | |||||
Net premiums: earned during period | (225) | (225) | |||||
Balance, end of period at original locked in discount rate | 3,712 | 3,698 | 3,712 | 3,698 | |||
Effect of changes in discount rate | 78 | 246 | 78 | 246 | (74) | (880) | |
Balance, June 30 | 3,790 | 3,944 | 3,790 | 3,944 | |||
Present value of future benefits & expenses | |||||||
Balance, January 1 | 17,472 | 22,745 | |||||
Effect of changes in discount rate | 307 | 1,329 | 307 | 1,329 | (125) | (5,942) | |
Balance, January 1, at original locked in discount rate | 17,347 | 16,803 | |||||
Effect of changes in cash flow assumptions | |||||||
Effect of actual variances from expected experience | (51) | (43) | |||||
Adjusted balance, January 1 | 17,296 | 16,760 | |||||
Interest accrual | 482 | 482 | |||||
Benefit & expense payments | (629) | (470) | |||||
Balance, end of period at original locked in discount rate | 17,149 | 16,772 | 17,149 | 16,772 | |||
Effect of changes in discount rate | 307 | 1,329 | 307 | 1,329 | (125) | $ (5,942) | |
Balance, June 30 | 17,456 | 18,101 | 17,456 | 18,101 | |||
Net LFPB | 13,666 | 14,157 | 13,666 | 14,157 | $ 13,480 | $ 19,132 | |
Re-measurement gain of insurance claims and policyholders’ benefits | $ (33) | $ 1 | $ (34) | $ 6 |
Future Policy Benefits Reserv_4
Future Policy Benefits Reserves - Schedule of Earned Premiums and Interest Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Insurance [Abstract] | ||||
Earned premiums | $ 113 | $ 118 | $ 228 | $ 238 |
Interest expense | $ 189 | $ 189 | $ 379 | $ 377 |
Future Policy Benefits Reserv_5
Future Policy Benefits Reserves - Undiscounted Expected Future Benefit and Expense Payments and Undiscounted Expected Future Gross Premiums (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Insurance [Abstract] | ||
Expected future benefit and expense payments | $ 33,287 | $ 33,429 |
Expected future gross premiums | $ 5,536 | $ 5,848 |
Future Policy Benefits Reserv_6
Future Policy Benefits Reserves - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Insurance [Abstract] | ||||
Liability for future policy benefit, expected future gross premium, discounted, before reinsurance | $ 3,900 | $ 4,200 | $ 3,900 | $ 4,200 |
Liability for future policy benefit, weighted-average duration | 12 years | 12 years | 12 years | 12 years |
Liability for future policy benefit, adverse development, expense | $ 29 | $ 1 | $ 42 | $ 1 |
Liability future policy benefit, losses recognized in prior period | $ 1 | $ 0 | $ 11 | $ 1 |
Future Policy Benefits Reserv_7
Future Policy Benefits Reserves - Weighted Average Interest Rates (Details) | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Insurance [Abstract] | |||
Original locked in discount rate | 5.25% | 5.27% | 5.29% |
Upper-medium grade fixed income instrument discount rate | 5.10% | 5.23% | 4.64% |
Shareholders' Equity - Componen
Shareholders' Equity - Components of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Balance at beginning of period | $ 15,314 | $ 16,576 | $ 15,201 | $ 17,471 | |||
Other comprehensive income (loss) before reclassifications, after tax | (136) | (798) | 126 | (1,809) | |||
Reclassification of (gains) losses from accumulated other comprehensive loss, after tax | 27 | 20 | 54 | 29 | |||
Other comprehensive income (loss) | (109) | (778) | 180 | (1,780) | |||
Amounts attributable to noncontrolling interests | 11 | 81 | (20) | 187 | |||
Balance at end of period | 15,470 | 15,714 | 15,470 | 15,714 | |||
As Reported | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Balance at beginning of period | 17,695 | 15,478 | 19,175 | ||||
Other comprehensive income (loss) | (1,405) | (3,010) | |||||
Effect of Adoption | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Balance at beginning of period | (1,119) | (277) | (1,704) | ||||
Other comprehensive income (loss) | 627 | 1,230 | |||||
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 | (14) | (6) | (7) | (2) | |||
Other comprehensive income (loss) before reclassifications, after tax | (8) | (1) | (16) | (5) | |||
Reclassification of (gains) losses from accumulated other comprehensive loss, after tax | 7 | (1) | 7 | (1) | |||
Other comprehensive income (loss) | (1) | (2) | (9) | (6) | |||
Amounts attributable to noncontrolling interests | (1) | 1 | 0 | 1 | |||
Balance at end of period | (16) | (7) | (16) | (7) | |||
Other comprehensive income (loss) before reclassifications, tax | 2 | (1) | 4 | 0 | |||
Reclassification from AOCI, current period, tax | (2) | 1 | (2) | 1 | |||
Net Unrealized Gains (Losses) on Investments with an Allowance for Credit Losses | Cumulative Effect, Period of Adoption, Adjustment | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Cumulative effect adjustments from changes in accounting standards | $ 0 | $ 0 | $ 0 | ||||
Net Unrealized Gains (Losses) on Investments with an Allowance for Credit Losses | As Reported | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Balance at beginning of period | (6) | (7) | (2) | ||||
Net Unrealized Gains (Losses) on Other Investments | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Balance at beginning of period | (1,867) | 641 | (2,469) | 3,009 | |||
Other comprehensive income (loss) before reclassifications, after tax | (427) | (2,240) | 225 | (4,884) | |||
Reclassification of (gains) losses from accumulated other comprehensive loss, after tax | 14 | 14 | 32 | 15 | |||
Other comprehensive income (loss) | (413) | (2,226) | 257 | (4,869) | |||
Amounts attributable to noncontrolling interests | 42 | 229 | (26) | 504 | |||
Balance at end of period | (2,238) | (1,356) | (2,238) | (1,356) | |||
Other comprehensive income (loss) before reclassifications, tax | 116 | 593 | (60) | 1,292 | |||
Reclassification from AOCI, current period, tax | (4) | (3) | (8) | (4) | |||
Net Unrealized Gains (Losses) on Other Investments | Cumulative Effect, Period of Adoption, Adjustment | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Cumulative effect adjustments from changes in accounting standards | 0 | 270 | 617 | ||||
Net Unrealized Gains (Losses) on Other Investments | As Reported | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Balance at beginning of period | (513) | (2,469) | 930 | ||||
Net Unrealized Gains (Losses) on Other Investments | Effect of Adoption | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Balance at beginning of period | 1,154 | 2,079 | |||||
Cumulative impact of changes in discount rates used to measure long duration contracts | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Balance at beginning of period | (393) | (2,119) | (36) | (3,585) | |||
Other comprehensive income (loss) before reclassifications, after tax | 256 | 1,507 | (140) | 3,142 | |||
Reclassification of (gains) losses from accumulated other comprehensive loss, after tax | |||||||
Other comprehensive income (loss) | 256 | 1,507 | (140) | 3,142 | |||
Amounts attributable to noncontrolling interests | (26) | (156) | 13 | (325) | |||
Balance at end of period | (163) | (768) | (163) | (768) | |||
Other comprehensive income (loss) before reclassifications, tax | (68) | (400) | 37 | (835) | |||
Reclassification from AOCI, current period, tax | 0 | 0 | 0 | 0 | |||
Cumulative impact of changes in discount rates used to measure long duration contracts | Cumulative Effect, Period of Adoption, Adjustment | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Cumulative effect adjustments from changes in accounting standards | 11 | (497) | (1,063) | ||||
Cumulative impact of changes in discount rates used to measure long duration contracts | As Reported | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Balance at beginning of period | 0 | 0 | 0 | ||||
Cumulative impact of changes in discount rates used to measure long duration contracts | Effect of Adoption | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Balance at beginning of period | (2,119) | (36) | (3,585) | ||||
Unrealized Gains (Losses) on Cash Flow Hedges | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Balance at beginning of period | 12 | 12 | 14 | (6) | |||
Other comprehensive income (loss) before reclassifications, after tax | 8 | 6 | 6 | 21 | |||
Reclassification of (gains) losses from accumulated other comprehensive loss, after tax | 3 | ||||||
Other comprehensive income (loss) | 8 | 6 | 6 | 24 | |||
Amounts attributable to noncontrolling interests | |||||||
Balance at end of period | 20 | 18 | 20 | 18 | |||
Other comprehensive income (loss) before reclassifications, tax | 0 | 5 | 1 | 3 | |||
Reclassification from AOCI, current period, tax | 0 | 2 | 0 | 1 | |||
Unrealized Gains (Losses) on Cash Flow Hedges | Cumulative Effect, Period of Adoption, Adjustment | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Cumulative effect adjustments from changes in accounting standards | 0 | 0 | 0 | ||||
Unrealized Gains (Losses) on Cash Flow Hedges | As Reported | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Balance at beginning of period | 12 | 14 | (6) | ||||
Pension and Postretirement Benefits | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Balance at beginning of period | (614) | (630) | (622) | (636) | |||
Other comprehensive income (loss) before reclassifications, after tax | (2) | ||||||
Reclassification of (gains) losses from accumulated other comprehensive loss, after tax | 6 | 7 | 15 | 12 | |||
Other comprehensive income (loss) | 6 | 5 | 15 | 12 | |||
Amounts attributable to noncontrolling interests | (1) | (2) | (1) | ||||
Balance at end of period | (609) | (625) | (609) | (625) | |||
Other comprehensive income (loss) before reclassifications, tax | 0 | 2 | 0 | 0 | |||
Reclassification from AOCI, current period, tax | (2) | (1) | (4) | (3) | |||
Pension and Postretirement Benefits | Cumulative Effect, Period of Adoption, Adjustment | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Cumulative effect adjustments from changes in accounting standards | 0 | 0 | 0 | ||||
Pension and Postretirement Benefits | As Reported | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Balance at beginning of period | (630) | (622) | (636) | ||||
Foreign Currency Translation | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Balance at beginning of period | (186) | (114) | (200) | (100) | |||
Other comprehensive income (loss) before reclassifications, after tax | 35 | (68) | 51 | (83) | |||
Reclassification of (gains) losses from accumulated other comprehensive loss, after tax | |||||||
Other comprehensive income (loss) | 35 | (68) | 51 | (83) | |||
Amounts attributable to noncontrolling interests | (3) | 7 | (5) | 8 | |||
Balance at end of period | (154) | (175) | (154) | (175) | |||
Other comprehensive income (loss) before reclassifications, tax | 0 | 0 | 0 | 0 | |||
Reclassification from AOCI, current period, tax | 0 | 0 | 0 | 0 | |||
Foreign Currency Translation | Cumulative Effect, Period of Adoption, Adjustment | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Cumulative effect adjustments from changes in accounting standards | $ 0 | $ 0 | $ 0 | ||||
Foreign Currency Translation | As Reported | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Balance at beginning of period | (114) | (200) | (100) | ||||
Total Accumulated Other Comprehensive Income (Loss) | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Balance at beginning of period | (3,062) | (2,216) | (3,320) | (1,320) | |||
Balance at end of period | $ (3,160) | (2,913) | (3,160) | (2,913) | |||
Total Accumulated Other Comprehensive Income (Loss) | As Reported | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Balance at beginning of period | (1,251) | (3,284) | 186 | ||||
Total Accumulated Other Comprehensive Income (Loss) | Effect of Adoption | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Balance at beginning of period | $ (965) | $ (36) | $ (1,506) |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Purchases of treasury stock (in shares) | 10 | 6.3 | ||
Purchases of treasury stock | $ 107 | $ 255 | $ 593 | $ 384 |
CNA Financial | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Number of stocks purchased during period (in shares) | 0.1 | |||
Value of stocks purchased during period | $ 3 |
Debt (Details)
Debt (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 USD ($) Extension | May 31, 2023 USD ($) | |
2.6% Senior Notes Due 2023 | Senior Notes | ||
Debt [Abstract] | ||
Face amount | $ 500 | |
Interest rate | 2.60% | |
Transportation and storage of natural gas and NGLs and other services – Boardwalk Pipelines | Senior Variable Rate Revolving Credit Facility | ||
Debt [Abstract] | ||
Number of extensions | Extension | 2 | |
Term of extension | 1 year | |
Remaining borrowing capacity | $ 912 | $ 1,000 |
CNA Financial | 5.5% Senior Notes Due 2033 | Senior Notes | ||
Debt [Abstract] | ||
Face amount | $ 400 | |
Interest rate | 5.50% |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenues [Abstract] | ||||
Revenues from contracts with customers | $ 552 | $ 505 | $ 1,123 | $ 1,020 |
Other revenues | 22 | 29 | 45 | 54 |
Operating revenues and other | 574 | 534 | 1,168 | 1,074 |
CNA Financial | Non-insurance warranty | ||||
Disaggregation of Revenues [Abstract] | ||||
Revenues from contracts with customers | 407 | 392 | 814 | 774 |
Boardwalk Pipelines | Transportation and storage of natural gas and NGLs and other services | ||||
Disaggregation of Revenues [Abstract] | ||||
Revenues from contracts with customers | 350 | 315 | 736 | 684 |
Loews Hotels & Co | Lodging and related services | ||||
Disaggregation of Revenues [Abstract] | ||||
Revenues from contracts with customers | $ 202 | $ 190 | $ 387 | $ 336 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | |||
Deferred revenue | $ 4,735 | $ 4,714 | |
Revenue recognized | 660 | $ 723 | |
Receivables | |||
Disaggregation of Revenue [Line Items] | |||
Receivables from contracts with customers | 145 | 168 | |
Other Liabilities | |||
Disaggregation of Revenue [Line Items] | |||
Deferred revenue | $ 4,800 | $ 4,800 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Performance Obligations (Details) $ in Billions | Jun. 30, 2023 USD ($) |
Disaggregation of Revenue [Line Items] | |
Remaining performance obligations | $ 13.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | |
Disaggregation of Revenue [Line Items] | |
Remaining performance obligations | $ 1.6 |
Expected timing of satisfaction | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Disaggregation of Revenue [Line Items] | |
Remaining performance obligations | $ 2.4 |
Expected timing of satisfaction | 1 year |
Benefit Plans - Components of N
Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pension Benefits | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Service cost | $ 1 | $ 1 | ||
Interest cost | 28 | 18 | 56 | 37 |
Expected return on plan assets | (32) | (40) | (64) | (83) |
Amortization of unrecognized net loss | 9 | 8 | 18 | 16 |
Settlements | 1 | 1 | 1 | 2 |
Regulatory asset decrease | 1 | 2 | ||
Net periodic (benefit) cost | 6 | (12) | 12 | (25) |
Other Postretirement Benefits | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Interest cost | 1 | 1 | 1 | |
Expected return on plan assets | (1) | (1) | (1) | |
Net periodic (benefit) cost | $ 0 | $ 0 | $ 0 | $ 0 |
Legal Proceedings (Details)
Legal Proceedings (Details) $ in Millions | Nov. 12, 2021 USD ($) |
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 | Jun. 30, 2023 USD ($) |
CNA Financial | |
Commitments and Contingencies [Abstract] | |
Potential amount of future payments under guarantees | $ 1.5 |
Segments (Details)
Segments (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) Segment subsidiary | Jun. 30, 2022 USD ($) | |
Segments [Abstract] | ||||
Number of reportable segments | Segment | 4 | |||
Number of individual operating subsidiaries | subsidiary | 3 | |||
Revenues: | ||||
Insurance premiums | $ 2,347 | $ 2,155 | $ 4,595 | $ 4,214 |
Net investment income | 592 | 366 | 1,161 | 798 |
Investment gains (losses) | 14 | (59) | (21) | (70) |
Non-insurance warranty revenue | 407 | 392 | 814 | 774 |
Operating revenues and other | 574 | 534 | 1,168 | 1,074 |
Total | 3,934 | 3,388 | 7,717 | 6,790 |
Expenses: | ||||
Insurance claims and policyholders’ benefits | 1,779 | 1,601 | 3,432 | 3,079 |
Amortization of deferred acquisition costs | 403 | 374 | 782 | 718 |
Non-insurance warranty expense | 384 | 367 | 768 | 721 |
Operating expenses and other | 808 | 766 | 1,589 | 1,482 |
Equity method (income) loss | (39) | (51) | (67) | (76) |
Interest | 91 | 96 | 186 | 192 |
Total | 3,426 | 3,153 | 6,690 | 6,116 |
Income (loss) before income tax | 508 | 235 | 1,027 | 674 |
Income tax (expense) benefit | (120) | (48) | (235) | (135) |
Net income | 388 | 187 | 792 | 539 |
Amounts attributable to noncontrolling interests | (28) | (20) | (57) | (50) |
Net income attributable to Loews Corporation | 360 | 167 | 735 | 489 |
CNA Financial | ||||
Expenses: | ||||
Insurance claims and policyholders’ benefits | 1,601 | 3,079 | ||
Income tax (expense) benefit | (37) | (97) | ||
Net income | 190 | 485 | ||
Amounts attributable to noncontrolling interests | (20) | (50) | ||
Net income attributable to Loews Corporation | 170 | 435 | ||
Operating Segments | CNA Financial | ||||
Revenues: | ||||
Insurance premiums | 2,347 | 2,155 | 4,595 | 4,214 |
Net investment income | 575 | 432 | 1,100 | 880 |
Investment gains (losses) | (32) | (59) | (67) | (70) |
Non-insurance warranty revenue | 407 | 392 | 814 | 774 |
Operating revenues and other | 7 | 6 | 14 | 13 |
Total | 3,304 | 2,926 | 6,456 | 5,811 |
Expenses: | ||||
Insurance claims and policyholders’ benefits | 1,779 | 1,601 | 3,432 | 3,079 |
Amortization of deferred acquisition costs | 403 | 374 | 782 | 718 |
Non-insurance warranty expense | 384 | 367 | 768 | 721 |
Operating expenses and other | 346 | 329 | 683 | 655 |
Equity method (income) loss | ||||
Interest | 31 | 28 | 59 | 56 |
Total | 2,943 | 2,699 | 5,724 | 5,229 |
Income (loss) before income tax | 361 | 227 | 732 | 582 |
Income tax (expense) benefit | (78) | (37) | (152) | (97) |
Net income | 283 | 190 | 580 | 485 |
Amounts attributable to noncontrolling interests | (28) | (20) | (57) | (50) |
Net income attributable to Loews Corporation | 255 | 170 | 523 | 435 |
Operating Segments | Boardwalk Pipelines | ||||
Revenues: | ||||
Insurance premiums | ||||
Net investment income | 5 | 6 | ||
Investment gains (losses) | ||||
Non-insurance warranty revenue | ||||
Operating revenues and other | 360 | 325 | 756 | 706 |
Total | 365 | 325 | 762 | 706 |
Expenses: | ||||
Insurance claims and policyholders’ benefits | ||||
Amortization of deferred acquisition costs | ||||
Non-insurance warranty expense | ||||
Operating expenses and other | 250 | 231 | 492 | 448 |
Equity method (income) loss | ||||
Interest | 39 | 42 | 78 | 84 |
Total | 289 | 273 | 570 | 532 |
Income (loss) before income tax | 76 | 52 | 192 | 174 |
Income tax (expense) benefit | (19) | (13) | (49) | (44) |
Net income | 57 | 39 | 143 | 130 |
Amounts attributable to noncontrolling interests | ||||
Net income attributable to Loews Corporation | 57 | 39 | 143 | 130 |
Operating Segments | Loews Hotels & Co | ||||
Revenues: | ||||
Insurance premiums | ||||
Net investment income | 1 | (1) | 2 | (1) |
Investment gains (losses) | 46 | 46 | ||
Non-insurance warranty revenue | ||||
Operating revenues and other | 207 | 201 | 398 | 353 |
Total | 254 | 200 | 446 | 352 |
Expenses: | ||||
Insurance claims and policyholders’ benefits | ||||
Amortization of deferred acquisition costs | ||||
Non-insurance warranty expense | ||||
Operating expenses and other | 194 | 185 | 377 | 337 |
Equity method (income) loss | (41) | (53) | (72) | (79) |
Interest | 4 | 6 | 8 | |
Total | 153 | 136 | 311 | 266 |
Income (loss) before income tax | 101 | 64 | 135 | 86 |
Income tax (expense) benefit | (27) | (20) | (37) | (27) |
Net income | 74 | 44 | 98 | 59 |
Amounts attributable to noncontrolling interests | ||||
Net income attributable to Loews Corporation | 74 | 44 | 98 | 59 |
Corporate | ||||
Revenues: | ||||
Insurance premiums | ||||
Net investment income | 11 | (65) | 53 | (81) |
Investment gains (losses) | ||||
Non-insurance warranty revenue | ||||
Operating revenues and other | 2 | 2 | ||
Total | 11 | (63) | 53 | (79) |
Expenses: | ||||
Insurance claims and policyholders’ benefits | ||||
Amortization of deferred acquisition costs | ||||
Non-insurance warranty expense | ||||
Operating expenses and other | 18 | 21 | 37 | 42 |
Equity method (income) loss | 2 | 2 | 5 | 3 |
Interest | 21 | 22 | 43 | 44 |
Total | 41 | 45 | 85 | 89 |
Income (loss) before income tax | (30) | (108) | (32) | (168) |
Income tax (expense) benefit | 4 | 22 | 3 | 33 |
Net income | (26) | (86) | (29) | (135) |
Amounts attributable to noncontrolling interests | ||||
Net income attributable to Loews Corporation | $ (26) | $ (86) | $ (29) | $ (135) |